Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q2 2021 Earnings Presentation
41 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Aug 30, 2021
Slide 1: Earnings Presentation Second Quarter 2021
Earnings Presentation SECOND QUARTER 2021 INVESTOR PRESENTATION
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
2 SECOND QUARTER 2021 Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitatio
Slide 3: Agenda
3 SECOND QUARTER 2021 Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX
Slide 4: Valuable Florida Franchise, Well Positioned for Growth
4 SECOND QUARTER 2021 • Highly disciplined credit portfolio • Strong liquidity position • Prudent capital position to support further organic growth and opportunistic acquisition • Steady increase in shareholder value with tangible book value per share increasing 13% year-over-year • Active board wi
Slide 5: Florida's Economic Growth Continues to Accelerate
5 SECOND QUARTER 2021 Florida’s Economic Growth Continues to Accelerate • Companies and individuals seeking real estate affordability, lower taxes, warmer weather, and easy flights back to the Northeast are migrating to Florida. • Florida's population grew 14.6% between 2010 and 2020. Double the rat
Slide 6: Seacoast Executes a Differentiated Strategy From Other Community Banks
6 SECOND QUARTER 2021 Seacoast Executes a Differentiated Strategy From Other Community Banks
Slide 7: Delivering Consistent Growth and Long-Term Value Creation
7 SECOND QUARTER 2021 Delivering Consistent Growth and Long-Term Value Creation Proven Track Record or Successful and Value-added Integrations 1. Acquisitions of Sabal Palm and Business Bank of Florida are expected to close during the first quarter of 2022 2. Pro forma as of June 30, 2021, does not
Slide 8: Meeting the $10 Billion Asset Threshold Challenge
8 SECOND QUARTER 2021 Meeting the $10 Billion Asset Threshold Challenge Well-Prepared to Cross $10 Billion Mark and Offset Incremental Costs Through Acquisitions Crossing $10 Billion Asset Threshold Stratification of Florida Headquartered Banks ¹ Tota l Asset Number o f Assets Parameters Insti tuti
Slide 9: Agenda
9 SECOND QUARTER 2021 Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX
Slide 10: Second Quarter 2021 Highlights
10 SECOND QUARTER 2021 Second Quarter 2021 Highlights All comparisons are to second quarter 2020 unless otherwise stated. • Net income of $31.4 million, an increase of 25%. Adjusted net income1 of $33.3 million, an increase of 31%. • Earnings per share increased to $0.56 compared to $0.47. Adjusted
Slide 11: Net Interest Income and Margin
11 SECOND QUARTER 2021 Net Interest Income and Margin • Net interest income1 totaled $65.9 million, a decrease of $0.8 million, or 1%, from the prior quarter and a decrease of $1.5 million, or 2%, from the second quarter of 2020. This included interest and fees earned on Paycheck Protection Program
Slide 12: Noninterest Income
12 SECOND QUARTER 2021 Noninterest income decreased $2.3 million from the prior quarter to $15.3 million, and adjusted noninterest income1 decreased $2.4 million to $15.4 million sequentially. Changes include: • Interchange revenue reached a new record of $4.1 million, compared to $3.8 million in th
Slide 13: Continued Focus on Disciplined Expense Control
13 SECOND QUARTER 2021 Continued Focus on Disciplined Expense Control Noninterest expense decreased $0.3 million and adjusted noninterest expense1 decreased $0.5 million sequentially. Changes quarter-over-quarter on an adjusted basis include: • Within salaries and benefits expense, results in the se
Slide 14: Efficiency Ratio
14 SECOND QUARTER 2021 • The efficiency ratio was 54.9% for the second quarter of 2021 compared to 53.2% in the prior quarter and 50.1% in the second quarter of 2020. • The adjusted efficiency ratio1 was 53.5% for the second quarter of 2021 compared to 52.0% in the prior quarter and 49.6% in the sec
Slide 15: Disciplined Approach to Lending in an Expanding Florida Economy
15 SECOND QUARTER 2021 Disciplined Approach to Lending in an Expanding Florida Economy Total Loans Outstanding ($ in millions) • Loans outstanding, excluding PPP, declined only $6 million quarter-over-quarter, in line with our expectation of near- flat growth for the second quarter of 2021. • $243 m
Slide 16: Strong Deposit Franchise Supported by Attractive Markets
16 SECOND QUARTER 2021 Strong Deposit Franchise Supported by Attractive Markets • Total deposits increased $450 million quarter-over- quarter and increased $1.2 billion, or 18%, compared to the second quarter of 2020. Second quarter balances include a decrease of $86 million in brokered deposits. •
Slide 17: Cost of Deposits Continues to Decline
17 SECOND QUARTER 2021 Cost of Deposits Continues to Decline, While Deposits Per Branch Continues to Grow • Seacoast's continued focus on organic growth and relationship-based funding, in combination with its innovative analytics platform, supports a well-diversified, low-cost deposit portfolio. • C
Slide 18: Unrealized Gain (Loss) in Securities
18 SECOND QUARTER 2021 Unrealized Gain (Loss) in Securities as of June 30, 2021 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Government backed $ 7,412 $ 439 $ (2) $ 7,849 Agency mortgage backed 987,402 14,224 (5,906) 995,720 Private label MBS and CMO
Slide 19: A Continued Focus on Building Wealth Management
19 SECOND QUARTER 2021 A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) • Assets under management increased to $1.2 billion at June 30, 2021, an increase of 13% from March 31, 2021, and 64% from June 30, 2020. This is a result of the wealth management team’s co
Slide 20: Steady Increase in Shareholder Value
20 SECOND QUARTER 2021 Steady Increase in Shareholder Value • Compounded annual growth rate of 12% in tangible book value per share since 2017. • The decline in tangible book value per share during the first quarter of 2020 was primarily attributed to the Day-1 impact of the adoption of CECL. • Init
Slide 21: Agenda
21 SECOND QUARTER 2021 Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX
Slide 22: Seacoast's Lending Strategy Has Produced a Diverse Loan Portfolio
22 SECOND QUARTER 2021 • Construction and land development and commercial real estate loans, as defined in regulatory guidance, represent 22% and 150%, respectively, of total consolidated risk based capital. • Portfolio diversification in terms of asset mix, industry, and loan type, has been a criti
Slide 23: Paycheck Protection Program Loans
23 SECOND QUARTER 2021 Paycheck Protection Program Loans PPP Fee Revenue Summary ($ in thousands) Fees earned from SBA to date (net of related costs) to originate PPP loans $ 27,633 Fees recognized in 2020 (7,774) Fees recognized to date in 2021 (9,267) Fees remaining to be recognized in future peri
Slide 24: Allowance for Credit Losses and Purchase Discount
24 SECOND QUARTER 2021 Allowance for Credit Losses and Purchase Discount ($ in thousands) Loans Outstanding Allowance for Credit Losses % of Category Purchase Discount % of Category Acquisition, Development & Construction $ 234,347 $ 4,053 1.73 % $ 179 0.08 % Owner Occupied Commercial Real Estate 1,
Slide 25: Continued Strong Asset Quality Trends
25 SECOND QUARTER 2021 Continued Strong Asset Quality Trends Allowance for Credit Losses ($ in thousands) Criticized Loans as a % of Risk-Based Capital
Slide 26: Expanding Florida's Commercial Bank
26 SECOND QUARTER 2021 Expanding Florida’s Commercial Bank Investing in growth and transforming the experience for our bankers and customers Chris Rolle joins as West FL Regional Market President, formerly Director of Middle Market Banking at Synovus and Central FL Market President at BB&T Pam Notar
Slide 27: Agenda
27 SECOND QUARTER 2021 Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX
Slide 28: Strong Capital Supporting a Fortress Balance Sheet
28 SECOND QUARTER 2021 Strong Capital Supporting a Fortress Balance Sheet 1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a reconciliation to GAAP. 2FDICIA defines well capitalized as 10.0% for total risk based capital and 8.0% for Tier
Slide 29: Agenda
29 SECOND QUARTER 2021 Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX
Slide 30: Seacoast's Approach to Customer Analytics
30 SECOND QUARTER 2021 Seacoast’s Approach to Customer Analytics Is a Unique Approach
Slide 31: Unique Approach to Growing Customer Value
31 SECOND QUARTER 2021 Unique Approach to Growing Customer Value Patent Pending 1Proprietary tools developed by Seacoast
Slide 32: Example of a Targeted, Multi-Channel Marketing Campaign
32 SECOND QUARTER 2021 Example of a Targeted, Multi-Channel Marketing Campaign
Slide 33: Seacoast's Integrated Delivery Model Supports Our Growth Strategy
33 SECOND QUARTER 2021 Seacoast’s Integrated Delivery Model Supports Our Growth Strategy 59% % of consumer deposits completed outside of the branch 10% % increase in consumer online users $530MM PPP loan forgiveness to date supported by fully digital platform 28K Number of outreach calls triggered b
Slide 34: Contact Details
34 SECOND QUARTER 2021 Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF
Slide 35: Agenda
35 SECOND QUARTER 2021 Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX
Slide 36: Quarterly Trend
36 SECOND QUARTER 2021 Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Commercial pipeline at period end $ 322,014 $ 240,871 $ 166,735 $ 256,191 $ 117,042 322,014 117,042 Commercial loan originations 193,028 204,253 277,389 88,245 106,857 397,281 290
Slide 37: Explanation of Certain Unaudited Non-GAAP Financial Measures
37 SECOND QUARTER 2021 Explanation of Certain Unaudited Non-GAAP Financial Measures This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP and adjusted financia
Slide 38: GAAP to Non-GAAP Reconciliation
38 SECOND QUARTER 2021 GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Net Income $ 31,410 $ 33,719 $ 29,347 $ 22,628 $ 25,080 $ 65,129 $ 25,789 Total noninterest income 15,322 17,671 14,930 16,94
Slide 39: GAAP to Non-GAAP Reconciliation
39 SECOND QUARTER 2021 GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Adjusted Noninterest Expense $ 43,400 $ 43,879 $ 41,906 $ 45,432 $ 40,676 $ 87,279 $ 82,158 Foreclosed property expense and n
Slide 40: GAAP to Non-GAAP Reconciliation
40 SECOND QUARTER 2021 GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Return on Average Tangible Assets (ROTA) 1.48 1.70 1.49 1.20 1.37 1.58 0.78 Impact of other adjustments for Adjusted Net Inco
Slide 41: Quarterly Trend
41 SECOND QUARTER 2021 Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Net Interest income1 $ 65,933 $ 66,741 $ 68,903 $ 63,621 $ 67,388 $ 132,674 $ 130,679 Accretion on acquired loans (2,886) (2,868) (4,448) (3,254) (2,988) (5,
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