Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q2 2023 Earnings Presentation
30 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jul 28, 2023
Slide 1: Earnings Presentation Second Quarter 2023
EARNINGS PRESENTATION SECOND QUARTER 2023 2023
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities expected revenues and revenue synergies; changes in technology or products that may be more difficult, costly, or less
Slide 3: Valuable Florida Franchise with Strong Capital and Liquidity
Valuable Florida Franchise with Strong Capital and Liquidity SEACOAST BANK FOOTPRINT Jacksonville • $15.0 billion in assets as of June 30, • Market Cap: $1.9 billion as of MSA 2023, operating in the nation’s fastest June 30, 2023 growing and third most populated state • Serving over 280,000 customer
Slide 4: Second Quarter 2023 Highlights
Second Quarter 2023 Highlights Comparisons are to the first quarter of 2023 unless otherwise stated • Seacoast successfully completed the Professional Bank conversion, wrapping up a significant period of M&A activity that has moved Seacoast beyond the $10 billion asset hurdle and definitively positi
Slide 5: Net Interest Income
Net Interest Income Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans $131,351 $127,153 $119,858 ($ in thousands) $88,399 $81,764 4.36% 4.31% 3.67% 3.86% 3.38% 4.01% 3.78% 3.58% 3.43% 3.26% 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 • Net interest income1 totaled $127.2 million,
Slide 6: Noninterest Income
Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $22,445 $21,576 $21,752 $1,916 $2,068 $20,221 $2,068 $1,916 $16,964 $17,264 $7,003 $4,828 $1,349 $5,004 $1,349 $4,779 BOLI BOLI Other Income 2 $1,160 Other Income 3 $4,546 $1,160 $4,246 $1,101 $576 $
Slide 7: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) $1,578 $1,518 $1,387 Assets under management totaled $1.6 billion at June 30, 2023, increasing 36% from June 30, 2022. This is a result of the $1,239 $1,228 wealth management team’s continuing success at winning
Slide 8: Noninterest Expense
Noninterest Expense Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $107,475 $107,865 $10,809 $10,256 $81,925 $83,992 $4,062 $7,479 $9,739 $10,928 $9,698 $10,286 $2,116 $2,397 $1,443 $2,687 Other Expense 2 $9,911 $14,553 $20,222 Other Expense2 $9,001 Legal & Profe
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Drummond Bank Adjusted - Efficiency1 and Apollo Bank Sabal Palm Bank Professional Freedom and Florida Business Bank Bank The increase in the adjusted Bank efficiency ratio primarily 67% reflects the impact of higher Legacy Bank deposit rates on net interest P
Slide 10: Disciplined Approach to Lending in a Strong Florida Economy
Disciplined Approach to Lending in a Strong Florida Economy Total Loans End-of-Period ($ in millions) $10,134 $10,118 Loans outstanding declined by $16 million as the Company maintains its disciplined approach 5.86% 5.89% to lending. $8,145 Loan yields increased three basis points from the 5.29% pri
Slide 11: Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio At June 30, 2023 ($ in thousands) Construction & Land Development and CRE Loans to Total Risk Based Capital Paycheck Protection Program 278% $4,639 Peers Consumer Construction and 66% <1% Land Development $272,082 3% $794,371 236% SBCF 8%
Slide 12: Loan Portfolio Mix
Loan Portfolio Mix At June 30, 2023 Balance Segment ($ in thousands) % of Balance PPP, 0.05% Non-Owner Occupied CRE Consumer, 2.69% CRE-Retail, 10.92% Retail $ 1,104,772 10.92 % Office 625,562 6.18 Multifamily 5+ 512,762 5.07 CRE-Office, 6.18% Residential, 23.72% Hotel/Motel 424,472 4.20 Industrial/
Slide 13: Non-owner Occupied Commercial Real Estate in Florida's Strongest Markets
Non-owner Occupied Commercial Real Estate in Florida’s Strongest Markets Balance Non-owner Occupied Commercial Real Estate by MSA ($ in thousands) Balance % of Total Loans Miami / Dade County $ 656,823 6.49 % Orlando-Kissimmee, FL MSA 472,068 4.67 14% of total loans in vibrant, South Florida tri- Ft
Slide 14: Non-owner Occupied Commercial Real Estate
Non-owner Occupied Commercial Real Estate Balance % of 30+ Days Past- CRE Non-Owner Occupied ($ in ‘000s) Balance Total Loans Average Loan Size Accruing Non Accrual Weighted LTV Retail $ 1,104,772 10.92 % $ 2,053 $ — $ — 52 % Office 625,562 6.18 1,677 231 — 55 Multifamily 5+ 512,762 5.07 984 — 282 5
Slide 15: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for Credit ($ in thousands) Outstanding Losses % of Category Purchase Discount % of Category Construction and Land Development $ 794,371 $ 6,960 0.88 % $ 11,882 1.50 % Owner Occupied Commercial Real Estate 1,669,369 6,418 0.38 30,514
Slide 16: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Net Charge-Offs (Recoveries) Nonperforming Loans and Classified Assets NCO NCO/Average Loans NPL NPL/Total Loans Classified Assets/Total Assets $7,591 $50,787 $48,326 $3,027 $3,188 $36,110 $30,598 $28,843 1.30% 1.25% 0.13% $841 0.14% 1.03% $705
Slide 17: Investment Securities Performance and Composition
Investment Securities Performance and Composition • Portfolio yield increased 28 basis points to 3.13% from 2.85% in the prior quarter, including $1,861 $2,016 approximately 12 basis points of benefit from interest rate swaps initiated in the current $1,801 $1,872 $1,916 quarter. ($ in millions) 3.1
Slide 18: Distinctive Deposit Franchise Supported by Attractive Markets
Distinctive Deposit Franchise Supported by Attractive Markets Deposits End-of-Period ($ in millions) $12,310 $12,283 Continued focus on organic growth and relationship-based $9,982 funding, in combination with our innovative analytics $9,189 platform, supports a well-diversified, low-cost deposit $8
Slide 19: Granular, Diverse and Relationship Focused Deposit Base
Granular, Diverse and Relationship Focused Deposit Base Deposits End-of-Period ($ in millions) $12,310 $12,283 10% 13% $9,982 23% $9,189 5% 23% Noninterest demand deposits represent 34% of overall deposits. 5% $8,765 5% 20% The Company benefits from a granular deposit franchise, with 21% the top ten
Slide 20: Liquidity Sources vs Uninsured Deposits
Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,412 $664 Unpledged Securities $300 Lines of Credit Uninsured and uncollateralized deposits represent 28% of $1,779 total deposits. Total Cash & Borrowing Capacity = $6.4 Billion FHLB Total l
Slide 21: Industry Leading Capital Position Supporting a Fortress Balance Sheet
Industry Leading Capital Position Supporting a Fortress Balance Sheet Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share $24.24 $24.14 $21.65 $22.45 $20.95 9.7% 9.8% 9.1% $16.66 $15.98 8.4% 8.5% $14.69 $14.25 $14.2
Slide 22: Investor Relations Contacts
Tracey L. Dexter Chief Financial Officer Tracey.Dexter@SeacoastBank.com (772) 403-0461 Michael Young Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 23: Appendix
Appendix SECOND QUARTER 2023 EARNINGS PRESENTATION 23
Slide 24: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 2Q'23 2Q'22 Commercial pipeline at period end $ 217,574 $ 297,380 $ 395,652 $ 530,430 $ 476,693 $ 217,574 $ 476,693 Commercial loan originations 317,378 321,665 489,605 340,438 46
Slide 25: Florida Population Trends
Florida Population Trends 2023 2010-2023 2023 2023-2028 2023-2028 Percent of Projected Median Projected HH Number of Deposits In Deposit Market National Total Population Population Population Household Income Income Change 1 MSA Market Rank Branches1 Market ($000)1 Share (%)1 Franchise (%)1 (Actual)
Slide 26: Explanation of Certain Unaudited Non-GAAP Financial Measures
Explanation of Certain Unaudited Non-GAAP Financial Measures This presentation contains financial information determined by These measures are also useful in understanding performance trends methods other than Generally Accepted Accounting Principles and facilitate comparisons with the performance o
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Net Income $ 31,249 $ 11,827 $ 23,927 $ 29,237 $ 32,755 Total noninterest income 21,576 22,445 17,651 16,103 16,964 Securities losses/(gains), net 176 (107) (18) 362 300 BOLI be
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Adjusted Noninterest Expense $ 83,992 $ 81,925 $ 70,431 $ 56,899 $ 51,663 Foreclosed property expense and net gain (loss) on sale 57 (195) 411 (9) 968 Provision for unfunded com
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Return on Average Assets (ROA) 0.84 % 0.34 % 0.78 % 1.10 % 1.21 % Impact of removing average intangible assets and related amortization 0.22 0.18 0.16 0.07 0.08 Return on Averag
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Yield on Loans1 5.89 % 5.86 % 5.29 % 4.45 % 4.29 % Impact of accretion on acquired loans (0.56) (0.69) (0.49) (0.14) (0.16) Yield on loans excluding accretion on acquired loans
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