Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q1 2019 Earnings Presentation
75 slides from Seacoast Banking Corporation Of Florida's earnings presentation, May 22, 2019
Slide 1: First Quarter 2019 Investor Presentation
FIRST QUARTER 2019 Investor Presentation F IRST QUARTER 2019 RESULTS
Slide 2: Forward-looking statements
2 FIRST QUARTER 2019 This press release contains “forward - looking statements” within the meaning, and protections, of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 , including, without limitation, statements about future financial and operating
Slide 3: Agenda
3 FIRST QUARTER 2019 3 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4 Agenda
Slide 4: Seacoast Has a Valuable and Growing Florida Franchise
4 FIRST QUARTER 2019 Benefiting from Balanced Growth Strategy; Attractive Geography; Investments in Customer Analytics and Business Banking; and a disciplined Acquisition Strategy Seacoast Has a Valuable and Growing Florida Franchise • $ 6.8 billion in assets as of March 31 , 2019 operating in the n
Slide 5: Agenda
5 FIRST QUARTER 2019 Agenda 5 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 6: First Quarter Highlights
6 FIRST QUARTER 2019 First Quarter Highlights WITH A GROWING PRESENCE IN FLORIDA'S MOST ATTRACTIVE MARKETS, SEACOAST IS ONE OF FLORIDA'S TOP - PERFORMING BANKING FRANCHISES • Earnings per share totaled $ 0 . 44 on a GAAP basis and $ 0 . 47 on an adjusted basis 1 • On a GAAP basis, ended the quarter
Slide 7: Net Interest Income and Margin
7 FIRST QUARTER 2019 Net Interest Income and Margin • Net interest income 1 totaled $ 60 . 9 million, up $ 0 . 8 million or 1 % from the prior quarter and $ 11 . 0 million or 22 % from the prior year quarter . • Net interest margin 1 increased 2 basis points to 4 . 02 % quarter - over - quarter . Re
Slide 8: Adjusted Noninterest Income
8 FIRST QUARTER 2019 Adjusted Noninterest Income 1 • Adjusted noninterest income 1 totaled $ 12 . 8 million, flat sequentially and up $ 0 . 4 million compared to the prior year quarter . Quarter - over - quarter results include : ⦁ Service charges on deposits declined by $ 0 . 3 million, the result
Slide 9: Adjusted Noninterest Expense
9 FIRST QUARTER 2019 Adjusted Noninterest Expense 1 • Adjusted noninterest expense in the first quarter includes : ⦁ Salaries and benefits included higher seasonal payroll taxes and 401 (k) plan contributions, typical of the first quarter . Additionally, we hired 10 business bankers in Tampa and For
Slide 10: Efficiency Ratio
10 FIRST QUARTER 2019 Efficiency Ratio • The efficiency ratio was 56 . 6 % compared to 65 . 8 % in the prior quarter and 57 . 8 % in the first quarter of 2018 . • The adjusted efficiency ratio 1 was 55 . 8 % compared to 54 . 2 % in the prior quarter and 57 . 1 % in the first quarter of 2018 . • The
Slide 11: Loan Growth Momentum Continues
11 FIRST QUARTER 2019 Loan Growth Momentum Continues, Supported by a Strong Florida Economy, and Prudent Guardrails • First quarter loans totaled $ 4 . 8 billion, an increase of $ 0 . 9 billion or 24 % year - over - year . Adjusting for acquisitions, loans grew $ 300 million or 8 % year - over - yea
Slide 12: Solid Deposit Growth Reflects Strong Franchise Fundamentals
12 FIRST QUARTER 2019 Solid Deposit Growth Reflects Strong Franchise Fundamentals and Positioning in Attractive Markets • Interest - bearing deposits increased year - over - year by $ 312 . 4 million, or 13 % , to $ 2 . 8 billion . • Year - over - year noninterest demand deposits grew 13 % , to $ 1
Slide 13: Average Deposit Balances and Cost
13 FIRST QUARTER 2019 Average Deposit Balances and Cost Our focus on organic growth and relationship - based funding, in combination with our innovative analytics platform, supports a well - diversified low - cost deposit portfolio . Our deposit beta continues to outperform our peers . 0.33% 0.39% 0
Slide 14: Credit Quality
14 FIRST QUARTER 2019 Credit Quality Non - Acquired 1 1 Includes charge off of $3.0 million for a single impaired loan. Net Charge - Offs ($ in thousands) Nonperforming Loans ($ in thousands) Provision for Loan Losses ( $ in thousands) ALLL ($ in thousands)
Slide 15: Maintaining Strong Capital to Support Balanced Growth Opportunities
15 FIRST QUARTER 2019 Maintaining Strong Capital to Support Balanced Growth Opportunities 1 Non - GAAP measure, see “Explanation of Certain Unaudited Non - GAAP Financial Measures.” Tangible Book Value / Book Value Per Share Tangible Common Equity / Tangible Assets Total Risk Based and Tier 1 Capita
Slide 16: On-track to Achieve Our Vision 2020 Objectives
16 FIRST QUARTER 2019 On - track to Achieve Our Vision 2020 Objectives Vision 2020 Targets Return on Tangible Assets 1.30% + Return on Tangible Common Equity 16% + Efficiency Ratio Below 50%
Slide 17: Agenda
17 FIRST QUARTER 2019 17 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4 Agenda
Slide 18: Seacoast Executes a Differentiated Strategy from Other Community Banks
18 FIRST QUARTER 2019 Experienced Board and Management Team Aligned With Shareholders Well - Positioned to Benefit from Florida Market Advanced Analytical and Digital Capabilities Focused on Controls Comprehensive Organic Growth Model Track Record of Value - Creating Acquisitions Seacoast Executes a
Slide 19: Customer-Centric Model for Profitable Organic Growth
19 FIRST QUARTER 2019 ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES WHO WE SERVE NEEDS WE MEET WE AIM TO BE PRIMARY BUSINESS Operating Companies CONSUMERS Mass Affluent, Affluent LENDING DEPOSITS WEALTH PAYMENTS DISTRIBUTION NETWORK BRANCH COMMERCIAL BANKING OFFICE DIGITAL ATMs CALL CENTER
Slide 20: Closer Look at Commercial Banking
20 FIRST QUARTER 2019 Closer Look at Commercial Banking – Continued Evolution of Offerings and Delivery Model Expanded Product Offering to Include Factoring and Asset Based Lending Launched Accelerate Commercial Banking with three offices Entered Small Business Banking Expanded into Central Florida
Slide 21: Commercial Banking Is Propelled by A Unique Value Proposition
21 FIRST QUARTER 2019 Commercial Banking Is Propelled by A Unique Value Proposition… Local Banks’ Technology Gap SEACOAST’S DIFFERENTIATED VALUE PROPOSITION Mega Banks’ Shortfall - High cost - to - serve diminishes ability to invest - Widening capabilities gap - Limited product offering - Inconvenie
Slide 22: Top Drivers of Increased Customer Wallet Share
22 FIRST QUARTER 2019 PURCHASE PROCESS • Provides a quick purchase experience • E asy - to - follow and uncomplicated purchase process RELATIONSHIP MANAGER • Teaches valuable things about the business • Communicates the value received in exchange for price • Offers a unique perspective on business f
Slide 23: Robust Results in Commercial Banking
23 FIRST QUARTER 2019 DEPOSITS ATTRIBUTABLE TO COMMERCIAL BANK CUSTOMERS COMMERCIAL LOAN ORIGINATIONS $432 $483 $553 2016 2017 2018 $ Millions Executing Seacoast’s Strategy H as Delivered Robust Results In Commercial Banking… $489 $730 $865 2016 2017 2018 $ Millions LOAN PORTFOLIO $1,496 $2,090 $2,5
Slide 24: Model Continues to Drive Efficiency
24 FIRST QUARTER 2019 ASSETS PER BANKER $ Millions …And The Model Continues To Drive Efficiency $43 $57 $62 2016 2017 2018 $ Millions ASSETS PER OPERATIONS FTE Has grown by 56% since 2016 $86 $133 $134 2016 2017 2018
Slide 25: Expand Business Banking With Best-In-Class Tools and Bankers
25 FIRST QUARTER 2019 Seacoast Will Continue To Expand Business Banking With Best - In - Class Tools and Business Bankers TODAY TOMORROW - Continue refinement of our c ommercial portal providing b ankers with quality l eads & customer e xpansion o pportunities - Install and launch digital originatio
Slide 26: Opportunities to Expand Business Banking in Florida Markets
26 FIRST QUARTER 2019 FLORIDA MSAs TARGET MARKET OPPORTUNITY 1 (# of Businesses) # OF BANKERS (Small Business & Commercial ) Miami - Ft. Lauderdale - West Palm Beach 2 150,770 27 Tampa - St. Petersburg - Clearwater 55,120 18 Orlando - Kissimmee - Sanford 45,097 30 Jacksonville & Deltona - Daytona Be
Slide 27: Seacoast's Community Bank Operates A Tested and Winning Strategy
27 FIRST QUARTER 2019 LOWER THE COST TO SERVE Adoption of Lower Cost Servicing Channels – Mobile, ATM, Online Branch Rationalization Given Digital Adoption & Streamlined Operations DEEPEN RELATIONSHIPS WITH EXISTING CUSTOMERS Cross Sell Opportunities Inside & Outside of Branch Product Structures Inc
Slide 28: A Proven Approach to Customer Acquisition
28 FIRST QUARTER 2019 LEVERAGE SEACOAST VALUE PROPOSITION TARGET THE RIGHT PROSPECTS Target Marke ts Buy Box Behavioral Insights Florida Expertise & Brand Recognition Competitive & Comprehensive Product Set PROMOTE CONSISTENTLY + + Enhanced Convenience & Accessibility EFFECTIVE CUSTOMER ACQUISITION
Slide 29: Digital Servicing Enables Migration to Low-Cost Channels
29 FIRST QUARTER 2019 VISION 2020 VISION 2020 Digital Servicing Enables Migration to Low - Cost Channels Consumer Mobile Adoption 37% 41% 45% 2016 2017 2018 ATM | Mobile | RDC Deposits Teller Transactions per Customer 16.1 13.7 12.5 2016 2017 2018 38% 43% 47% 2016 2017 2018 E - Sign 34% 44% 45% 2016
Slide 30: Deposits Increased While Branches Rationalized
30 FIRST QUARTER 2019 As of YE 2018, Deposits Increased 187% While Branches Increased Only 50% Since YE 2013 As a Result, Seacoast Is Growing While Rationalizing Branches $1,806 $2,417 $2,844 $3,523 $4,593 $53 $56 $66 $75 $90 $102 $40 $50 $60 $70 $80 $90 $100 $110 $0 $500 $1,000 $1,500 $2,000 $2,500
Slide 31: Robust Results in Community Banking
31 FIRST QUARTER 2019 LOAN PORTFOLIO The Consumer, Small Business, & Mortgage loan book has increased by 64% since 2016 CUSTOMER CONTRIBUTION Contribution has increased by over $30 million $75 $88 $108 2016 2017 2018 $ Millions $1,384 $1,727 $2,276 2016 2017 2018 TOTAL DEPOSITS ATTRIBUTABLE TO CONSU
Slide 32: Revenue per Associate and Deposits per Branch
32 FIRST QUARTER 2019 REVENUE PER ASSOCIATE - Empowered Associates - Attracting The Right Talent DEPOSITS PER BRANCH - Digital migration continues to drive branch efficiency - 36% growth since 2016 $75 $90 $102 2016 2017 2018 $ Millions $262 $293 $342 $200 $220 $240 $260 $280 $300 $320 $340 $360 201
Slide 33: Well Positioned For Further Growth in Key Markets
33 FIRST QUARTER 2019 Seacoast Is Well Positioned For Further Growth in Key Markets 2013 Customer Footprint 2018 Customer Footprint Orlando Tampa/St Pete Palm Beach 2019 & Beyond Mass (teal) Mass Affluent (orange) Affluent (green) Attractive Florida MSA’s SMART GROWTH IN DESIRABLE FLORIDA MSA’S FUTU
Slide 34: Wealth Management Represents a Significant Opportunity
34 FIRST QUARTER 2019 $ Millions OPTIMIZED THE TEAM Expanded the team across the footprint and across the state of Florida. Wealth Management Represents a Significant Opportunity DROVE MATERIAL GROWTH $513MM in total fee based assets under management, drove $5.9MM of total revenue. BUILT THE BUSINES
Slide 35: Seacoast Executes a Differentiated Strategy from Other Community Banks
35 FIRST QUARTER 2019 Experienced Board and Management Team Aligned With Shareholders Well - Positioned to Benefit from Florida Market Advanced Analytical and Digital Capabilities Focused on Controls Comprehensive Organic Growth Model Track Record of Value - Creating Acquisitions Seacoast Executes a
Slide 36: Florida Is an Attractive Market
36 FIRST QUARTER 2019 Florida Is an Attractive Market, with a Healthy Economy, a nd Strong Population Growth Seacoast Customer Map Source: Federal Reserve Data, Florida Trend, Florida Business Journals • Florida GDP surpassed $1 trillion in mid 2018 • Florida GDP ranks fourth nationwide behind Calif
Slide 37: South Florida MSA
37 FIRST QUARTER 2019 Seacoast Customer Map • Includes Palm Beach, Broward and Miami Dade counties • 35% of state GDP • Note that SBCF does not actively compete in Miami - Dade • 30% of state population • Population of Broward and Palm Beach represents 17% of state population • Major industries incl
Slide 38: Orlando-Kissimmee-Sanford MSA
38 FIRST QUARTER 2019 Seacoast Customer Map • Includes Orange, Seminole, Lake and Osceola counties • 14% of state GDP • 12% of state population • Major industries include Aviation/Aerospace, Information Technology, Defense and Homeland, Professional Services and Life Sciences • 27% of Seacoast Depos
Slide 39: Tampa-St Pete-Clearwater MSA
39 FIRST QUARTER 2019 Seacoast Customer Map • Includes Hillsborough, Pinellas, Hernando, and Pasco counties • 15% of state GDP • 15% of state population • Major industries include Professional Services, Information Technology, Defense and Homeland, and Financial Services • Multiple companies with co
Slide 40: Port St Lucie, Melbourne, Daytona MSAs
40 FIRST QUARTER 2019 Seacoast Customer Map • Includes multiple counties spanning from Martin to Volusia along Florida’s east coast • 6 % of state GDP • 9 % of state population • Major industries include Aviation/Aerospace, Defense and Homeland • 42% of Seacoast Deposits, 24% of Loans Port St Lucie,
Slide 41: Florida Is a Growing Market Served by Fewer Banks
41 FIRST QUARTER 2019 Florida Is a Growing Market Served by Dramatically Fewer Banks 50 100 150 200 250 300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Florida GDP $ in Billions Number of Florida HQ’d B
Slide 42: Seacoast Executes a Differentiated Strategy from Other Community Banks
42 FIRST QUARTER 2019 Experienced Board and Management Team Aligned With Shareholders Well - Positioned to Benefit from Florida Market Advanced Analytical and Digital Capabilities Focused on Controls Comprehensive Organic Growth Model Track Record of Value - Creating Acquisitions Seacoast Executes a
Slide 43: Seacoast Continues to Benefit from Value-Creating Acquisitions
43 FIRST QUARTER 2019 20% average IRR largest Florida headquartered publicly traded bank , up from 6th in 2014 #1 Seacoast Continues to Benefit from Value - Creating Acquisitions GulfShore Bank April 2017 BMO Harris Bank Orlando Operations June 2016 Floridian Financial Group March 2016 Grand Bank Ju
Slide 44: Seacoast Executes a Differentiated Strategy from Other Community Banks
44 FIRST QUARTER 2019 Experienced Board and Management Team Aligned With Shareholders Well - Positioned to Benefit from Florida Market Advanced Analytical and Digital Capabilities Focused on Controls Comprehensive Organic Growth Model Track Record of Value - Creating Acquisitions Seacoast Executes a
Slide 45: Customer Analytics Is a Unique Advantage
45 FIRST QUARTER 2019 Seacoast’s Approach to Customer Analytics Is a Unique Advantage UNIFIED, HOLISTIC VIEW OF EACH CUSTOMER • In - house analytical dataset of 27,000+ columns per customer • Derived information such as Customer Contribution, Engagement Levels and Channel Preferences • Over 20,000 l
Slide 46: Unique Approach to Growing Customer Value
46 FIRST QUARTER 2019 v XXXXXXX 46 Unique Approach to Growing Customer Value Patent Pending Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation A single view of the customer + Extensive use of advanced analytics + Three machine learning (1) mode
Slide 47: Proprietary Software Connects Employees With Customer Insights
47 FIRST QUARTER 2019 Seacoast’s Proprietary Software Connects Employees With Customer Insights Fueled By Customer Analytics CUSTOMER RELATIONSHIP Bankers have a full view of products & services as well as contact history OPPORTUNITY MANAGMENT Consumer analytics & customer insights drive product opp
Slide 48: Seacoast's Commercial Banker Portal (RPS)
48 FIRST QUARTER 2019 Seacoast’s Commercial Banker Portal (RPS)
Slide 49: Example of a Targeted, Multi-Channel Marketing Campaign
49 FIRST QUARTER 2019 Example of a Targeted, Multi - Channel Marketing Campaign LOC usage campaign – delivered to eligible customers across multiple touchpoints Analytic models identify customers who have a LOC they are not using, triggering automated marketing campaign EMAIL ATM MESSAGE DIGITAL BAN
Slide 50: Incremental Results from Current Customers: Consumer Loans
50 FIRST QUARTER 2019 XXXXXXX 50 Seacoast’s Model Is Driving Incremental Results from Current Customers: No.1 – Consumer Loans Incremental growth among customers with over 6 months tenure 1 Assumes loan spread is 3.5%, average life is 3.83 years, and NPV hurdle rate is 15% • 126% increase in loan pr
Slide 51: Incremental Results from Current Customers: Consumer Deposits
51 FIRST QUARTER 2019 XXXXXXX 51 Seacoast’s Model Is Driving Incremental Results from Current Customers. No. 2 – Consumer Deposits • 78% increase in deposit production effectiveness • Leverages existing cost structure to drive incremental deposits • $26 million in incremental NPV 1 Incremental growt
Slide 52: Customers Value Seacoast's Advice and Take Action
52 FIRST QUARTER 2019 52 Customers Value Seacoast’s Advice and Take Action 30% 40% 50% 60% 70% 80% 10% 15% 20% 25% 30% 35% 40% 45% 50% Act on the financial advice received? (% yes ) Received any financial advice from a bank rep? (% yes ) Seacoast National Bank Regional Bank National Bank National Ba
Slide 53: Single View of the Customer Gives Insight into Value Creation
53 FIRST QUARTER 2019 53 With a Single View of the Customer, Seacoast Has Greater Insight into Value Creation Than Its Peers A Few Examples of Opportunities within the Existing Customer Base Size of Audience Simulated Opportunity Increasing Deposits from existing customers Number of current customer
Slide 54: Seacoast Executes a Differentiated Strategy from Other Community Banks
54 FIRST QUARTER 2019 Experienced Board and Management Team Aligned With Shareholders Well - Positioned to Benefit from Florida Market Advanced Analytical and Digital Capabilities Focused on Controls Comprehensive Organic Growth Model Track Record of Value - Creating Acquisitions Seacoast Executes a
Slide 55: Disciplined Credit Culture Focused on Six Key Tenets
55 FIRST QUARTER 2019 INGRAINED DIVERSIFIED • Focus on consumers and businesses with revenue under $50 million • Granular and borrower quality targeted in lower PD strata • House limits substantially lower than Legal Lending Limit ASSURED 5 6 4 MEASURED SKILLED • Continuously recruiting high quality
Slide 56: Guardrails, Analytics and Credit Culture Playbook
56 FIRST QUARTER 2019 EXPAND GROW SELECTIVE CAUTION AVOID Guardrails , Analytics and Credit Culture Playbook Guide E xecution T oward B uilding an Intentional P ortfolio Medical Accounting Engineering Homeowner Associations Retail w/ credit tenants Healthcare Clinics & Labs Veterinarians Home Mainte
Slide 57: Granularity and Lack of Concentration Are Hallmarks of the Portfolio
57 FIRST QUARTER 2019 12.5% 9.5% 9.2% 8.7% 6.7% 5.5% 6.6% 4.7% 3.8% $- $500 $1,000 0% 2% 4% 6% 8% 10% 12% 14% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Largest Relationship as % of Capital Avg Comm. Loan Size (Loans in Core) Granularity & Lack of Concentration Are Hallmarks of t
Slide 58: Disciplined Portfolio Management Continues to Deliver Sound Mix
58 FIRST QUARTER 2019 Disciplined Portfolio Management Continues to Deliver Sound Mix 58 $ 2,156 $ 2,880 $ 4,825 $ 3,817 29% 29% 26% 28% 30% 26% 26% 28% 21% 21% 21% 20% 10% 12% 15% 14% 5% 6% 6% 5% 5% 6% 6% 5% 2015 2016 2017 2018 Consumer HELOC C&I OOCRE Residential CRE Focus on C&I built mix from 10
Slide 59: Commercial Real Estate Exposure Is Moderate
59 FIRST QUARTER 2019 DOWNLOADS CRE and AD&C ratios remain well below regulatory limit s Commercial Real Estate Exposure Is Moderate and Well Below Regulatory Thresholds 1 1. Acquisition, Development and Construction (AD&C) is defined as loans used for construction, land development and land acquisi
Slide 60: Seacoast's Model Is Built to Perform Through Business Cycles
60 FIRST QUARTER 2019 SELECTIVE on new construction projects (Residential and Commercial ) Requiring more pre - sales and pre - leasing requirements on construction Seacoast’s Model Is Built to P erform Through Business Cycles AVOID lending on HIGH RISK industries Increasing borrower equity requirem
Slide 61: Seacoast Executes a Differentiated Strategy from Other Community Banks
61 FIRST QUARTER 2019 Experienced Board and Management Team Aligned With Shareholders Well - Positioned to Benefit from Florida Market Advanced Analytical and Digital Capabilities Focused on Controls Comprehensive Organic Growth Model Track Record of Value - Creating Acquisitions Seacoast Executes a
Slide 62: Revitalized Board, Aligned with Shareholders
62 FIRST QUARTER 2019 Jacqueline Bradley May 2015 2013 2014 2017 2016 Dennis Arczynski Bank Regulations July 2013 Julie Daum Governance & Talent October 2013 Maryann Goebel Technology February 2014 Jacqueline Bradley Wealth Management May 2015 Herb Lurie Financial Services / Capital Markets April 20
Slide 63: Equity Compensation Plan Aligned with Shareholder Value Creation
63 FIRST QUARTER 2019 Seacoast’s Equity Compensation Plan Is Aligned with Shareholder Value Creation 0% 5% 10% 15% 20% 25% 30% 35% 40% - 50 100 150 200 250 300 350 2015 2016 2017 2018 Employees Granted Awards % of Total Employees 37% of Associate B ase H as Meaningful A wards W ith Vesting Schedules
Slide 64: Strategy To Sustain Value Creation Post 2020
64 FIRST QUARTER 2019 Advance Our Culture To Ensure Consistent Execution Capitalize on Business Banking Opportunities Continue to Evolve Our Operating Model to Drive Efficiency Leverage Our Analytics Capabilities To Expand Customer Relationships Complete Disciplined, Accretive Acquisitions That Expa
Slide 65: Agenda
65 FIRST QUARTER 2019 Agenda 65 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 66: Evolution of Capabilities 2014-2018
66 FIRST QUARTER 2019 2014 2015 2016 2018 2017 Acquired data & analytics talent Built marketing automation and cross sale engine Improved tools and built sales capabilities in our call center Expanded Small Business focus iCat launch increased sales activity and improved execution Migrated to digita
Slide 67: Key Principles to Driving Long-Term Shareholder Value
67 FIRST QUARTER 2019 67 1 Primary driver of growth will be strong performance from business units growing organically in robust Florida markets 2 Goal is to deliver profitability and growth to the maximum level while maintaining our conservative risk posture 3 Acquisitions will be evaluated opportu
Slide 68: Seacoast Is On Track To Achieve Vision 2020 Goals
68 FIRST QUARTER 2019 How We Sell • Continue to develop direct sales channels and offerings based on customer needs and preferences • Simplify processes for our customers and bankers • Reduce our cost to acquire relationships How We Service • We are outpacing our peers in engaging our customers with
Slide 69: Well Positioned to Outpace on Growth
69 FIRST QUARTER 2019 Drive our customer - centric approach, leveraging the proprietary analytics tools we have developed Press the Accelerator On Analytics Remain disciplined in acquiring select institutions in Orlando, Palm Beach, Broward, Tampa/St. Petersburg, and southwest Florida Expand Busines
Slide 70: 2019 Outlook and Priorities
70 FIRST QUARTER 2019 2019 Outlook • Loan growth in the mid to high single digits • Deposit growth target of 6 % • Continue to drive risk adjusted spreads on lending • Maintain our conservative credit quality profile • Continue focus on building noninterest income as a percentage of overall revenue
Slide 71: 2020 and 2021+ Outlook and Priorities
71 FIRST QUARTER 2019 2020 Outlook • Achieve Vision 2020 Goals • Continue focus on building noninterest income as a percentage of revenue • Accelerate fulfillment in commercial banking with new origination tools, and leverage the proprietary commercial portal to exploit relationship expansion • Acce
Slide 72: Contact Details
72 FIRST QUARTER 2019 Charles M. Shaffer Executive Vice President Chief Financial Officer (772) 221 - 7003 Chuck.Shaffer@seacoastbank.com INVESTOR RELATIONS www.SeacoastBanking.com NASDAQ: SBCF Contact Details: Seacoast Banking Corporation of Florida 72
Slide 73: Explanation of Certain Unaudited Non-GAAP Financial Measures
73 FIRST QUARTER 2019 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 net income and adju
Slide 74: GAAP to Non-GAAP Reconciliation Quarterly Trend
74 FIRST QUARTER 2019 GAAP to Non - GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'19 4Q'18 3Q'18 2Q'18 1Q'18 Net Income $ 22,705 $ 15,962 $ 16,322 $ 16,964 $ 18,027 Total noninterest income $ 12,836 $ 12,714 $ 12,291 $ 12,721 $ 12,296 Securities losses, net 9 42
Slide 75: GAAP to Non-GAAP Reconciliation Quarterly Trend
75 FIRST QUARTER 2019 GAAP to Non - GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'19 4Q'18 3Q'18 2Q'18 1Q'18 Adjusted Noninterest Expense $ 41,098 $ 39,540 $ 35,913 $ 36,547 $ 35,705 Foreclosed property expense and net gain/(loss) on sale 40 — 137 (405 ) (192 )
Seacoast Banking Corp of Florida — Q1 2019 Earnings Presentation on 6ix