Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q3 2022 Earnings Presentation
28 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Oct 28, 2022
Slide 1: Earnings Presentation Third Quarter 2022
EARNINGS PRESENTATION THIRD QUARTER 2022 2022
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 Act result of employees working remotely; inability of Seacoast’s risk management framework to manage risks associated
Slide 3: Valuable Florida Franchise, Well-Positioned with Strong Capital and Liquidity
Valuable Florida Franchise, Well-Positioned with Strong Capital and Liquidity SEACOAST BANK FOOTPRINT1 Jacksonville MSA • $10.3 billion in assets as of • Market Cap: $1.9 billion as of September 30, 2022, operating in the September 30, 2022 nation’s third-most populous state • Strong liquidity posit
Slide 4: Florida's Economic Strength is Evident
Florida’s Economic Strength is Evident Attracted by Florida’s favorable business climate and lower taxes, individual and business migration to Florida has surged. The significant inflow of wealth is positively impacting the state’s fiscal and economic health. Domestic Wealth Migration, 2020 14.6% #1
Slide 5: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights Comparisons are to second quarter of 2022 unless otherwise stated • Net interest margin expanded 29 basis points to 3.67%. • Excluding the effects of PPP and accretion on acquired loans, Excluding the effects of PPP and accretion on acquired loans, loan yields expanded
Slide 6: Significant Expansion in Net Interest Margin and Net Interest Income
Significant Expansion in Net Interest Margin and Net Interest Income Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans $88,399 $81,764 ($ in thousands) $76,639 $72,412 3.67% $71,455 3.38% 3.22% 3.16% 3.25% 3.57% 3.24% 3.05% 2.89% 2.91% 3Q'21 4Q'21 1Q'22 2Q'22
Slide 7: Noninterest Income
Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $19,028 $19,058 $1,128 $16,964 $1,128 $17,264 $16,103 $16,465 $1,349 $1,349 $1,363 $1,363 $6,162 $6,192 $4,246 $4,546 $3,932 $4,294 Service Charges Service Charges Interchange Income $2,550 $932 $434
Slide 8: Noninterest Expense
Noninterest Expense Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $61,359 $56,899 $55,268 $56,148 $9,736 $51,663 $9,277 $6,054 $6,960 $46,811 $6,586 2 $3,794 $2,003 Other Expense $4,151 $2,946 Legal & Professional Other Expense 2 $5,758 $1,565 $6,546 $7,481 $6,5
Slide 9: Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control
Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control GAAP - Efficiency Adjusted - Efficiency1 Sabal Palm Bank and Freedom Bank Florida Business Bank First Bank of the Legacy Bank Palm Beach Community and Palm Beaches of Florida North Star Bank Acquisition 62% 62% 60% 60% 56% 57% 5
Slide 10: Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio At September 30, 2022 ($ in thousands) Construction & Land Development and CRE Loans to Total Risk Based Capital Paycheck Protection Program 266% Peers $5,294 Construction and 62% Consumer <1% $180,416 Land Development $361,9
Slide 11: Disciplined Approach to Lending in a Strong Florida Economy
Disciplined Approach to Lending in a Strong Florida Economy Total Loans Outstanding ($ in millions) Loans outstanding, excluding PPP, increased 1 $161 million, or 10% annualized. 1 $6,691 1 $6,542 $6,451 Total loan originations were $555 million, including $340 million in commercial $5,906 $5,925 or
Slide 12: Investment Securities Performance and Composition
Investment Securities Performance and Composition $1,644 $1,707 $1,801 $1,861 • Portfolio yield increased 38 basis points to 2.36% from 1.98% in the prior quarter. $1,546 • AFS securities ended the quarter with a net unrealized loss of $246.4 million ($ in millions) compared to a net unrealized loss
Slide 13: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $9,244 $9,189 Continued focus on organic growth and relationship- $8,765 based funding, in combination with our innovative $531 $468 $8,334 $427 analytics platform, supports a well-diversified, low-cost $8,
Slide 14: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for ($ in thousands) Outstanding Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 361,913 $ 3,345 0.92 % $ 375 0.10 % Owner Occupied Commercial Real Estate 1,253,459 5,194 0.41 4,076 0.33
Slide 15: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Net Charge-Offs (Recoveries) Nonperforming Loans NCO NCO/Total Loans NPL NPL/Total Loans $1,432 $32,612 $30,598 0.10% $26,209 $26,442 0.10% $21,464 $570 0.55% 0.52% 0.41% 0.40% 0.32% 0.04% $79 $103 ($124) 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 3Q'21 4Q'2
Slide 16: Strong Capital Supporting a Fortress Balance Sheet
Strong Capital 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 $22.12 $22.40 $22.15 $21.65 11.1% $20.95 10.6% 9.9% 9.7% 9.8% $17.52 $17.84 $17.12 $16.66 $15.98 3Q'21 4Q'21 1Q'
Slide 17: Long Term Growth in Shareholder Value
Long Term Growth in Shareholder Value Compound annual growth rate of 8% in tangible book $17.84 $17.52 value per share since the first quarter of 2017. $17.08 $17.12 $16.62 $16.66 $16.16 $15.98 $15.57 $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 Excluding the 2022 year to date decl
Slide 18: Tracey L. Dexter, Investor Relations
Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF
Slide 19: Appendix
Appendix THIRD QUARTER 2022 EARNINGS PRESENTATION 19
Slide 20: Low Historical Deposit Beta Coupled with Favorable Deposit Composition
Low Historical Deposit Beta Coupled with Favorable Deposit Composition Total 3Q15 to 2Q19 Deposit Beta1 equal to 28% Deposit Mix 3.00% 24.1% 19.4% 2.50% 2.50% 2.50% 24.8% 2.28% 22.5% 2.01% 4.9% 2.00% 11.2% 10.7% 1.80% 10.5% 40.2% 1.53% 31.7% 1.50% 1.30% 1.25% 1.00% 1.04% 1.00% September 30, 2015 Sep
Slide 21: Interest Rate Sensitivity
Interest Rate Sensitivity % Change in Projected Baseline Net Interest Income Change in Interest Rates 1-12 months 13-24 months The table presents the projected impact of a change in interest rates on the projected +2.00% 9.6 % 13.4 % baseline net interest income for the 12 and 24 month periods begin
Slide 22: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Nine Months Ended (Amounts in thousands) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Commercial pipeline at period end $ 530,430 $ 476,693 $ 619,547 $ 397,822 $ 368,907 $ 530,430 $ 368,907 Commercial loan originations1 340,438 461,855 372,986 408,948
Slide 23: 2023 Acquisition of Professional Holding Corp. (NASDAQ:PFHD)
2023 Acquisition of Professional Holding Corp. (NASDAQ:PFHD) Transaction Value • $398 million fully diluted, $26.93 per PFHD common share1 • PFHD shareholders will receive 0.8909 shares of Seacoast common stock per share Consideration • Options are rolled over into Seacoast options based on an excha
Slide 24: 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 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Net Income $ 29,237 $ 32,755 $ 20,588 $ 36,330 $ 22,944 $ 82,580 $ 88,073 Total noninterest income 16,103 16,964 15,373 18,706 19,028 48,440 52,021
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Adjusted Noninterest Expense $ 56,899 $ 51,663 $ 50,705 $ 48,309 $ 46,811 $ 159,267 $ 134,090 Foreclosed property expense and net (loss)/gain on sa
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Return on Average Assets (ROA) 1.10 % 1.21 % 0.79 % 1.43 % 0.93 % 1.03 % 1.29 % Impact of removing average intangible assets and related 0.07 0.08
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Net Interest income1 $ 88,399 $ 81,764 $ 76,639 $ 72,412 $ 71,455 $ 246,802 $ 204,129 Accretion on acquired loans (2,242) (2,720) (3,717) (3,520) (3
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