Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q4 2021 Earnings Presentation
38 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Feb 14, 2022
Slide 1: Fourth Quarter 2021 Investor Presentation
Fourth Quarter 2021 INVESTOR PRESENTATION 20 21
Slide 2: 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 limitation, statements about future financial and operating results, cost savings, enh
Slide 3: Agenda
AGE N DA 01 ABOUT SEACOAST BANK 02 COMPANY PERFORMANCE 03 OUTLOOK 04 APPENDIX
Slide 4: About Seacoast Bank
ABOUT SEACOAST BANK AGE N DA 01
Slide 5: Valuable Florida Franchise, Well Positioned for Growth
• $9.7 billion in assets as of December 31, 2021, operating in the nation’s third-most populous state • Strong presence in Florida’s most attractive markets ▪ #1 Florida-based bank in Orlando MSA ▪ #1 market share in Port St Lucie MSA ▪ #2 Florida-based bank in West Palm Beach/Fort Lauderdale ▪ #2 F
Slide 6: Florida's Economic Growth Continues
Florida’s Economic Growth Continues • Companies and individuals seeking 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 rate of overall U.S. population growth. Source: US Census data ◦ A
Slide 7: Proven Track Record of Successful and Value-Added Integrations
P R O V E N T R A C K R E C O R D O F S U C C E S S F U L A N D V A L U E - A D D E D I N T E G R A T I O N S Delivering Consistent Growth and Long-Term Value Creation 4h FOURTH QUARTER 2021 INVESTOR PRESENTATION 1. Acquisitions of Sabal Palm Bank and Florida Business Bank closed January 3, 2022. 2.
Slide 8: Meeting the $10 Billion Asset Threshold Challenge
Meeting the $10 Billion Asset Threshold Challenge W E L L - P R E P A R E D T O C R O S S $ 1 0 B I L L I O N M A R K A N D O F F S E T I N C R E M E N T A L C O S T S T H R O U G H A C Q U I S I T I O N S Crossing $10 Billion Asset Threshold Stratification of Florida Headquartered Banks ¹ • Seacoas
Slide 9: Company Performance
COMPANY PERFORMANCE AGE N DA 02
Slide 10: Fourth Quarter 2021 Highlights
• Net interest margin declined six basis points to 3.16%. Excluding the effect of PPP and accretion on acquired loans, net interest margin increased two basis points to 2.91%. • Steadily building shareholder value through consistent growth in tangible book value per share, ending the period at $17.8
Slide 11: Net Interest Income and Margin
Net Interest Income and Margin ($ in th ou sa nd s) $68,903 $66,741 $65,933 $71,455 $72,412 3.59% 3.51% 3.23% 3.22% 3.16% 3.37% 3.25% 3.03% 2.89% 2.91% Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 • Net interest income1 tota
Slide 12: Continued Strength in Noninterest Income
Continued Strength in Noninterest Income $2,423 $4,131 $4,135 $2,495 $2,606 $2,562 $2,356 $3,646 $1,949 $812 $2,550 $200 $2,030 $2,332 $113 $5,708 $1,128 BOLI Other Income SBA Gains Mortgage Banking Wealth Management Interchange Income Service Charges Noninterest Income ($ in thousands) BOLI Other I
Slide 13: Continued Focus on Disciplined Expense Control
2 Other Expense Legal & Professional Occupancy & Telephone Data Processing Cost Salaries & Benefits Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) Other Expense Legal & Professional Occupancy & Telephone Data Processing Cost Amortization of Intangibles Salaries &
Slide 14: Efficiency Ratio Trend
Efficiency Ratio Trend 66% 57% 53% 49% 48% 60% 50% 62% 48% 53% 55% 60% 54% 54% 56% 51% 49% 48% 54% 50% 55% 49% 52% 53% 51% 53% GAAP - Efficiency Adjusted - Efficiency1 First Bank of the Palm Beaches First Green Bank Freedom Bank Legacy Bank of Florida • The efficiency ratio was 53.7% for the fourth
Slide 15: Building Florida's Leading Commercial Bank
Ron York joins as Treasury Management Executive Previously with First Horizon 4Q 2020 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 Building Florida’s Leading Commercial Bank Dan Hilken joins as C
Slide 16: Diverse Loan Portfolio
Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio Commercial Real Estate - Owner Occupied $1,197,774 20% Construction and Land Development $230,824 4% Paycheck Protection Program $91,107 2% Consumer $174,175 3% Commercial & Financial $1,069,356 18% Commercial Real Estate - N
Slide 17: Disciplined Approach to Lending in an Expanding Florida Economy
Disciplined Approach to Lending in an Expanding Florida Economy $5,735 $5,661 $5,437 $5,906 $5,925 $5,168 $5,079 $5,073 $5,715 $5,834 $567 $582 $364 $191 $91 4.42% 4.39% 4.33% 4.49% 4.31% 4.23% 4.15% 4.13% 4.03% 3.94% 4Q'20 1Q'21 Yield Excluding PPP and Accretion on Acquired Loans Reported Yield PPP
Slide 18: Quarterly Trend
Quarterly Trend 18FOURTH QUARTER 2021 EARNINGS PRESENTATION Twelve Months Ended (Amounts in thousands) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Commercial pipeline at period end $ 397,822 $ 368,907 $ 322,014 $ 240,871 $ 166,735 397,822 166,735 Commercial loan originations1 408,948 331,618 193,028 2
Slide 19: Paycheck Protection Program Loans
Paycheck Protection Program Loans ($ in m ill io ns ) $93 $576 5,169 loans $9.5 deferred fees $295 3,201 loans ($778) 7,423 loans December 31, 2020 Originations and Acquisitions Forgiveness December 31, 2021 PPP Fee Revenue Summary (in thousands) Fees earned from SBA to date (net of related costs) t
Slide 20: Investment Securities Performance and Composition
Unrealized Gain (Loss) in Securities as of December 31, 2021 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Government backed $ 6,466 $ 316 $ (3) $ 6,779 Agency mortgage backed 1,234,721 8,308 (20,309) 1,222,720 Private label MBS and CMOs 88,096 1,091
Slide 21: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets $6,933 $7,386 $7,836 $8,334 $8,068 $3,856 $4,333 $4,716 $4,932 $4,966 $2,246 $2,440 $2,618 $2,785 $2,547 $831 $613 $502 $617 $555 Transaction Accounts Time Deposits 2Q'21 3Q'21 Savings & Money Market 4Q'20 1Q'21 4Q'21 62% Deposits Outstanding
Slide 22: Continued Branch Optimization While Maintaining Low Cost of Deposits
Continued Branch Optimization While Maintaining Low Cost of Deposits ($ in m ill io ns ) $116 $118 $135 $138 $138 $156 $166 $165 $154 1.75% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.61% 0.57% 0.31% 0.24% 0.19% 0.13% 0.08% 0.07% 0.06% Trended Cost of Deposits and Deposits per Branch Cost of D
Slide 23: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management $653 $870 $1,239 4Q'19 4Q'20 4Q’21 Assets Under Management ($ in millions) Assets under management totaled $1.2 billion at December 31, 2021 increasing 42% from December 31, 2020. This is a result of the wealth management team’s continuing success at w
Slide 24: Allowance for Credit Losses and Purchase Discount
The total allowance for credit losses of $83.3 million as of December 31, 2021 represents management’s estimate of lifetime expected credit losses. The remaining unrecognized discount on acquired loans of $23.1 million will be earned as an adjustment to yield over the life of the loans. Additionally
Slide 25: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends $3,127 $370 $655 $1,432 $570 0.21% 0.03% 0.05% 0.10% 0.04% Net Charge-Offs NCO NCO/Total Loans 4Q'20 1Q'21 2Q'21 3Q'21 Allowance for Credit Losses 4Q'21 Nonperforming Loans NPL NPL/Total Loans $92,733 $86,643 $81,127 $87,823 $83,315 1.79% 1.71% 1.60% 1.62% 1.53%
Slide 26: Strong Capital Supporting a Fortress Balance Sheet
Strong Capital Supporting a Fortress Balance Sheet $16.16 $16.62 $17.08 $17.52 $17.84 $20.46 $20.89 $21.33 $22.12 $22.40 Tangible Book Value and Book Value Per Share Tangible Book Value Per Share Book Value Per Share 4Q'20 4Q'21 4Q'20 4Q'21 18.5% 17.4% 19.1% 18.1% 19.2% 18.3% 18.6% 17.7% 18.2% 17.4%
Slide 27: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $17.52 $17.84 $16.62 $17.08 $16.16 $15.11 $15.57 $14.30 $14.76 $14.42 $13.65 $12.98 $11.67 $12.01 $12.33 $10.95 $11.15 $11.39 $10.41 $10.55 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 • C
Slide 28: Integrated Delivery Model Supports Growth Strategy
Integrated Delivery Model Supports Growth Strategy Strong momentum in usage of digital tools and other non-branch delivery channels, and tools to equip our teams to outperform All metrics compare 4Q’21 to 4Q’20 Consumer Business % consumer deposits completed outside of the branch % increase in consu
Slide 29: Outlook
OUTLOOK AGE N DA 03
Slide 30: Key Principles to Driving Long-Term Shareholder Value
Primary driver of growth will be strong performance from business units growing organically in robust Florida markets 1 Goal is to deliver profitability and growth to the maximum level while maintaining our conservative risk posture Acquisitions will be evaluated opportunistically when additive to p
Slide 31: Priorities for 2022 and Beyond – Executing Balanced Growth Strategy
Positioned To Be Highly Competitive Post Pandemic • Organic Growth Levers • Focused on outperforming in the Commercial Banking space, leveraging talent and technology • Continuing to evolve Retail Banking by further integrating digital to deliver an outstanding experience for our customers • Executi
Slide 32: Thank You – Investor Relations
I N V E S T O R R E L A T I O N S w w w . S e a c o a s t B a n k i n g . c o m N A S D A Q : S B C F Seacoast Banking Corporation of Florida THANK YOU. T R A C E Y L . D E X T E R E x e c u t i v e V i c e P r e s i d e n t C h i e f F i n a n c i a l O f f i c e r ( 7 7 2 ) 4 0 3 - 0 4 6 1
Slide 33: Appendix
APPENDIX AGE N DA 04
Slide 34: Explanation of Certain Unaudited Non-GAAP Financial Measures
Explanation of Certain Unaudited Non-GAAP Financial Measures 34FOURTH QUARTER 2021 INVESTOR PRESENTATION This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP
Slide 35: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 35FOURTH QUARTER 2021 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Net Income $ 36,330 $ 22,944 $ 31,410 $ 33,719 $ 29,347 $ 124,403 $ 77,764 Total noninterest income 1
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 36FOURTH QUARTER 2021 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Adjusted Noninterest Expense $ 48,309 $ 46,811 $ 43,400 $ 43,879 $ 41,906 $ 182,399 $ 169,496 Foreclo
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 37FOURTH QUARTER 2021 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended amortization (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Return on Average Assets (ROA) 1.43 % 0.93 % 1.40 % 1.61 % 1.39 % 1.33 % 0.99 % Impact o
Slide 38: Quarterly Trend
Quarterly Trend 38FOURTH QUARTER 2021 INVESTOR PRESENTATION Twelve Months Ended (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Net Interest income1 $ 72,412 $ 71,455 $ 65,933 $ 66,741 $ 68,903 $ 276,541 $ 263,203 Accretion on acquired loans (3,520) (3,483) (2,
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