Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q1 2024 Earnings Presentation
38 slides from Seacoast Banking Corporation Of Florida's earnings presentation, May 1, 2024
Slide 1: Investor Presentation First Quarter 2024
INVESTOR PRESENTATION FIRST QUARTER 2024 2024
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
2FIRST QUARTER 2024 INVESTOR PRESENTATION Cautionary Notice Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 19
Slide 3: Agenda
01 ABOUT SEACOAST BANK 02 OUTLOOK 03 COMPANY PERFORMANCE 04 APPENDIX
Slide 4: About Seacoast Bank
AGENDA ABOUT SEACOAST BANK
Slide 5: Valuable Florida Franchise with Strong Capital and Liquidity
5FIRST QUARTER 2024 INVESTOR PRESENTATION • $14.8 billion in assets as of March 31, 2024, operating in the nation’s fastest growing and third most populated state • Strong presence in Florida’s most attractive markets, increasing to #15 Florida market share in 2023 from #18 in 2022 ▪ #1 Florida-base
Slide 6: Proven Track Record of Successful and Value-Added Integrations
6FIRST QUARTER 2024 INVESTOR PRESENTATION PROVEN TRACK RECORD OF SUCCESSFUL AND VALUE-ADDED INTEGRATIONS
Slide 7: Outlook
AGENDA OUTLOOK
Slide 8: Executing Our Balanced Growth Strategy
8FIRST QUARTER 2024 INVESTOR PRESENTATION Executing Our Balanced Growth Strategy BUILD the business to become the dominant commercial bank in Florida ▪ Organic growth leveraging technology and high performance culture to attract best banking talent in Florida from larger regionals ▪ Opportunistic ac
Slide 9: Company Performance
AGENDA COMPANY PERFORMANCE
Slide 10: First Quarter 2024 Highlights
10FIRST QUARTER 2024 INVESTOR PRESENTATION • Net income of $26.0 million, or $0.31 per diluted share; adjusted net income1 of $31.1 million, or $0.37 per diluted share. • Adjusted return on average tangible assets1 of 1.04%, adjusted return on tangible common equity1 of 11.15%, and an adjusted effic
Slide 11: Net Interest Income
11FIRST QUARTER 2024 INVESTOR PRESENTATION Net Interest Income ($ in th ou sa nd s) $131,351 $127,153 $119,505 $111,035 $105,298 4.31% 3.86% 3.57% 3.36% 3.24% 3.78% 3.42% 3.13% 3.02% 2.91% Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans 1Q'23 2Q'23 3Q'23 4Q'23 1Q'2
Slide 12: Noninterest Income
12FIRST QUARTER 2024 INVESTOR PRESENTATION Noninterest income increased $3.2 million from the prior quarter to $20.5 million, and adjusted noninterest income1 increased $0.5 million to $20.3 million. Changes from the prior quarter include: Service charges on deposits increased $0.1 million from the
Slide 13: Continued Focus on Building Wealth Management
13FIRST QUARTER 2024 INVESTOR PRESENTATION Assets Under Management ($ in millions) $653 $870 $1,239 $1,387 $1,711 $1,871 2019 2020 2021 2022 2023 1Q’24 28% CAGR Continued Focus on Building Wealth Management Assets under management totaled $1.9 billion at March 31, 2024, increasing 9% from December 3
Slide 14: Noninterest Expense
14FIRST QUARTER 2024 INVESTOR PRESENTATION Noninterest Expense Noninterest expense totaled $90.4 million, an increase of $4.0 million, or 5%, from the prior quarter, and adjusted noninterest expense1 totaled $83.3 million, a decrease of $3.1 million. Changes compared to the prior quarter on an adjus
Slide 15: Disciplined Approach to Lending in a Strong Florida Economy
15FIRST QUARTER 2024 INVESTOR PRESENTATION $10,134 $10,118 $10,011 $10,063 $9,978 5.86% 5.89% 5.93% 5.85% 5.90% 5.17% 5.31% 5.34% 5.40% 5.48% Yield Excluding Accretion on Acquired Loans Reported Yield Total Loans 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Total Loans End-of-Period ($ in millions) Disciplined App
Slide 16: Loan Portfolio Mix
16FIRST QUARTER 2024 INVESTOR PRESENTATION At March 31, 2024 Loan Portfolio Mix Seacoast's lending strategy results in a diverse and granular loan portfolio. Seacoast’s average loan size is $332 thousand and the average commercial loan size is $742 thousand. Portfolio diversification in terms of ass
Slide 17: Allowance for Credit Losses and Purchase Discount
17FIRST QUARTER 2024 INVESTOR PRESENTATION Allowance for Credit Losses and Purchase Discount ($ in thousands) Loans Outstanding Allowance for Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 623,246 $ 7,001 1.12 % $ 4,260 0.68 % Owner Occupied Commercia
Slide 18: Continued Stable Asset Quality Trends
18FIRST QUARTER 2024 INVESTOR PRESENTATION Net Charge-Offs $3,630 NCO NCO/Average Loans 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 ($ in thousands) $155,640 $159,715 $149,661 $148,931 $146,669 1.54% 1.58% 1.49% 1.48% 1.47% ACL ACL/Total Loans 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Allowance for Credit Losses Continued St
Slide 19: Historical Asset Quality Trends
19FIRST QUARTER 2024 INVESTOR PRESENTATION Net Charge-Offs 0.13% 0.05% 0.01% 0.22% 0.15% NCO/Average Loans 2020 2021 2022 2023 1Q’24 Annualized ($ in thousands) Nonperforming Loans and Past Dues 0.63% 0.52% 0.35% 0.65% 0.77% 0.18% 0.10% 0.40% 0.30% 0.30% NPL/Total Loans Accruing Past Due / Total Loa
Slide 20: Investment Securities Performance and Composition
20FIRST QUARTER 2024 INVESTOR PRESENTATION Investment Securities Performance and Composition Recognized a $4.1 million gain on the opportunistic sale of Visa Class B shares during the quarter. The gain was offset by a partial repositioning of the securities portfolio. Recognized $3.8 million in loss
Slide 21: Distinctive Deposit Franchise Supported by Attractive Markets
21FIRST QUARTER 2024 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $12,310 $12,283 $12,108 $11,777 $12,016 5.00% 5.25% 5.50% 5.50% 5.50% 0.77% 1.38% 1.79% 2.00% 2.19% Total Deposits Fed Funds Cost of Deposits 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Distinctive Deposit Franchise Supported by Att
Slide 22: Granular, Diverse and Relationship-Focused Customer Funding Base
22FIRST QUARTER 2024 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $12,310 $12,283 $12,108 $11,777 $12,016 Transaction Accounts Savings Money Market Brokered Time Deposits 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Granular, Diverse and Relationship-Focused Customer Funding Base The Company benefi
Slide 23: Robust Capital Position Supporting a Fortress Balance Sheet
23FIRST QUARTER 2024 INVESTOR PRESENTATION $14.25 $14.24 $14.26 $15.08 $15.26 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 8.4% 8.5% 8.7% 9.3% 9.3% 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 14.6% 14.7% 15.1% 15.9% 16.0% 13.4% 13.5% 14.0% 14.5% 14.6% Total Risk Based Capital Tier 1 Ratio 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 6.0% 12.1
Slide 24: Investor Relations
Michael Young EVP, Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 25: Appendix
25FIRST QUARTER 2024 INVESTOR PRESENTATION Appendix
Slide 26: Quarterly Trend
26FIRST QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Commercial pipeline at period end $ 498,617 $ 306,531 $ 259,445 $ 198,984 $ 289,162 Commercial loan originations 260,032 334,229 94,021 307,430 320,209 SBA pipeline at period end 15,630 20
Slide 27: Non-owner Occupied Commercial Real Estate
27FIRST QUARTER 2024 INVESTOR PRESENTATION Non-owner Occupied Commercial Real Estate CRE Non-Owner Occupied ($ in ‘000s) Balance Balance % of Total Loans Average Loan Size 30+ Days Past- Accruing Non Accrual Weighted LTV Retail $ 1,120,440 11.2 % $ 2,138 $ — $ 1,608 51 % Office 565,127 5.7 1,605 — 1
Slide 28: Liquidity Sources vs Uninsured Deposits
28FIRST QUARTER 2024 INVESTOR PRESENTATION Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $5,773 $3,511 $683 $2,691 $1,708 $300 $391 Borrowing Capacity + Cash Uninsured and Uncollateralized Deposits Total Cash & Borrowing Capacity = $5.8 Bi
Slide 29: Florida's Economic Strength Continues, and Acquisition Opportunities Remain
29FIRST QUARTER 2024 INVESTOR PRESENTATION Florida’s Economic Strength Continues, and Acquisition Opportunities Remain Florida’s economic strength is evident. Individual and business migration to Florida has surged, and the economy has diversified across finance and technology. Notes: 1Defined as ha
Slide 30: Seacoast's Approach to Customer Analytics Is a Unique Advantage
30FIRST QUARTER 2024 INVESTOR PRESENTATION Seacoast’s Approach to Customer Analytics Is a Unique Advantage
Slide 31: Unique Approach to Growing Customer Value
31FIRST QUARTER 2024 INVESTOR PRESENTATION Unique Approach to Growing Customer Value
Slide 32: Improved Digital Capabilities and User Experience
32FIRST QUARTER 2024 INVESTOR PRESENTATION Improved Digital Capabilities and User Experience Continue to Drive Satisfaction and Greater Adoption Across User Base 11% Increase in digital account origination compared to Q4 2023 Increase in Active User Base and User Sessions Since upgrading the online
Slide 33: Building a Modern Technology Stack That Scales with Growth
33FIRST QUARTER 2024 INVESTOR PRESENTATION Building a Modern Technology Stack That Scales with Growth, And Delivers On Our Vision for Customer & Banker Experience… Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022
Slide 34: Explanation of Certain Unaudited Non-GAAP Financial Measures
34FIRST QUARTER 2024 INVESTOR PRESENTATION This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, noninter
Slide 35: Quarterly Trend
35FIRST QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Net Income $ 26,006 $ 29,543 $ 31,414 $ 31,249 $ 11,827 Total noninterest income 20,497 17,338 17,793 21,576 22,445 Securities losses (gains), net (229) 2,437 387 176
Slide 36: Quarterly Trend
36FIRST QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Adjusted Income Taxes 9,569 8,874 10,012 14,344 7,441 Adjusted Net Income1 $ 31,132 $ 31,363 $ 34,170 $ 43,489 $ 23,682 Earnings per diluted share, as reported $ 0.31
Slide 37: Quarterly Trend
37FIRST QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Pre-Tax Pre-Provision Earnings $ 35,674 $ 42,006 $ 43,383 $ 40,864 $ 47,560 Total Adjustments to Noninterest Income (229) 2,437 387 176 (2,224) Total Adjustments to N
Slide 38: Quarterly Trend
38FIRST QUARTER 2024 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'24 4Q'23 3Q'23 2Q'23 1Q'23 Adjusted Return on Average Tangible Common Equity 11.15 % 11.80 % 12.79 % 16.08 % 10.16 % Loan Interest Income1 $ 147,308 $ 148,004 $ 150,048 $ 148,432 $ 135,341 Accr
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