Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q3 2021 Earnings Presentation
33 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Oct 29, 2021
Slide 1: Earnings Presentation Third Quarter 2021 Results
Earnings Presentation THIRD QUARTER 2021 RESULTS Contact: (email) Tracey.Dexter@SeacoastBank.com (phone) 772.403.0461 (web) www.SeacoastBanking.com
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities increased cybersecurity risks, including as a result of employees working remotely; inability of Seacoast’s risk manag
Slide 3: Valuable Florida Franchise, Well Positioned for Growth
Valuable Florida Franchise, Well Positioned for Growth with Strong Capital, Liquidity and Disciplined Credit Culture Seacoast Customer Map • $9.9 billion in assets as of • Highly disciplined credit portfolio September 30, 2021, operating in the nation’s third-most populous • Strong liquidity positio
Slide 4: Florida's Economic Growth Continues to Accelerate
Florida’s Economic Growth Continues to Accelerate • Companies and individuals seeking real estate affordability, 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. popu
Slide 5: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights • Net income of $22.9 million includes the impact of recording the provision for loan losses associated with the day 1 onboarding of Legacy Bank’s loan portfolio and merger-related expenses associated with Legacy Bank and with the two pending transactions. • Adjusted ne
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans $68,903 $66,741 $71,455 $65,933 ($ in thousands) $63,621 3.42% 3.59% 3.51% 3.23% 3.22% 3.40% 3.37% 3.25% 3.03% 2.89% 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 • Net interest income1 totaled
Slide 7: Continued Strength in Noninterest Income
Continued Strength in Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $19,028 $19,058 $16,946 $1,128 $1,128 $16,942 $899 $15,322 $899 $15,377 $2,616 $872 $5,350 $872 $5,380 $2,611 $252 $2,371 $252 $2,427 BOLI $812 BOLI 2 $232 $232 $812 Other Incom
Slide 8: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $55,268 $51,674 $6,187 $7,772 $45,432 $46,811 $45,784 $4,151 $43,400 $5,891 $5,481 $7,525 $3,018 $5,918 $5,448 $2,131 2 Other Expense $2,182 2 Legal & Professional $6,13
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 First Green Palm Beach Freedom Bank Community Bank Legacy Bank Bank and North of Florida Star Bank First Bank of the Acquisitions 66% Palm Beaches Palm Beach Community and North Star Bank Acquisition 62% 60% 60% 58% 57% 57% 56% 55% 54%
Slide 10: Disciplined Approach to Lending in an Expanding Florida Economy
Disciplined Approach to Lending in an Expanding Florida Economy Total Loans Outstanding ($ in millions) • Loans outstanding, excluding PPP, increased $642 million $5,858 $5,906 $5,735 $5,661 $191 quarter-over-quarter, including $439 million from the $639 $5,437 $567 $582 $5,715 acquisition of Legacy
Slide 11: Organic Growth in Commercial Loan Categories During the Quarter
Organic Growth in Commercial Loan Categories During the Quarter Loans by Segment Compared to the Prior Quarter 09/30/2021 Excl. Total Loans Legacy Bank Wholesale Loan Legacy Bank and Organic Δ from Excluding growth from the (in thousands) 9/30/2021 Acquired Purchases Purchases PQ Legacy Bank acquisi
Slide 12: Paycheck Protection Program Loans
Paycheck Protection Program Loans PPP Loans Rollforward $39 PPP Fee Revenue Summary 419 loans ($675) $256 6,259 loans 2,782 loans (in thousands) Fees earned from SBA to date (net of related $ 27,641 costs) to originate PPP loans Fees recognized in 2020 (7,774) $576 ($ in millions) Fees recognized to
Slide 13: Investment Securities Performance and Composition
Investment Securities Performance and Composition Unrealized Gain (Loss) in Securities as of September 30, 2021 Amortized Unrealized Unrealized (in thousands) Cost Gains Losses Fair Value $1,546 Available for Sale $1,323 Government backed $ 6,785 $ 371 $ (2) $ 7,154 ($ in millions) $1,287 Agency mor
Slide 14: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $8,334 • Total deposits increased $498 million quarter- $7,836 $617 over-quarter, including $495 million from the $7,386 $502 Legacy Bank acquisition, and increased $1.4 $6,915 $6,933 $613 billion, or 21%,
Slide 15: Continued Branch Optimization While Maintaining Low Cost of Deposits
Continued Branch Optimization While Maintaining Low Cost of Deposits Trended Cost of Deposits and Deposits per Branch 1 Cost of Deposits Fed Funds Deposits per branch • Seacoast's continued focus on organic growth and relationship-based funding, in combination with its innovative analytics platform,
Slide 16: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) • Assets under management totaled $1.2 billion at September 30, 2021 increasing 47% from September 30, 2020. This is a result of $1,161 the wealth management team’s continuing R C AG success at winning business w
Slide 17: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for ($ in thousands) Outstanding Credit Losses % of Category Purchase Discount % of Category Acquisition, Development & Construction $ 227,459 $ 2,603 1.14 % $ 724 0.32 % Owner Occupied Commercial Real Estate 1,201,336 8,653 0.72 4,51
Slide 18: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO/Total Loans NPL NPL/Total Loans $3,127 $36,897 $36,110 $35,328 $32,920 $32,612 $1,736 $1,432 0.63% 0.63% 0.62% 0.61% 0.21% 0.55% 0.12% $655 0.10% $370 0.03% 0.05% 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 3Q'20 4Q
Slide 19: 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 $20.89 $21.33 $20.46 $19.91 10.7% 11.0% 10.7% 10.4% 10.6% $17.08 $17.52 $16.16 $16.62 $15.57 3Q'20 4Q'20
Slide 20: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $17.52 $17.08 $16.62 $16.16 $15.57 $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 $11.39 $10.95 $11.15 $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 • Compounded ann
Slide 21: Contact Details: Seacoast Banking Corporation of Florida
Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF THIRD QUARTER 2021 EARNINGS PRESENTATION 21
Slide 22: Appendix
Appendix THIRD QUARTER 2021 EARNINGS PRESENTATION 22
Slide 23: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Nine Months Ended (Amounts in thousands) 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20 Commercial pipeline at period end $ 368,907 $ 322,014 $ 240,871 $ 166,735 $ 256,191 368,907 256,191 Commercial loan originations1 331,618 193,028 204,253 277,389 88,2
Slide 24: Expanding Seacoast's Commercial Banking Presence Across Florida
Expanding Seacoast’s Commercial Banking Presence Across Florida Investing in growth and transforming the experience for our bankers and customers Chris Rolle joins as Brannon Fitch, Dan Hilken joins as West FL Regional James Norton joins as formerly of BB&T, Central FL Regional Market President, CRE
Slide 25: Legacy Bank of Florida Acquisition
Legacy Bank of Florida Acquisition Fair Value of Assets and Liabilities Acquired (Preliminary) (In thousands) August 6, 2021 Loan Portfolio Valuation and CECL Impact Assets: Loans acquired of $477.2 million includes: Cash $ 98,101 • $5.3 million purchase discount on $381.3 million in non-PCD loans,
Slide 26: Sabal Palm Bancorp, Inc. Transaction Summary
Sabal Palm Bancorp, Inc. Transaction Summary Transaction Value • $53.9 million fully diluted, $6.96 per Sabal Palm Bancorp, Inc. common share1 • Shareholders will receive 0.2203 shares of Seacoast common stock Consideration • Options are rolled over into Seacoast options based on the positive differ
Slide 27: Business Bank of Florida, Corp. Transaction Summary
Business Bank of Florida, Corp. Transaction Summary Transaction Value • $28.4 million fully diluted, $25.25 per Business Bank of Florida common share1 • Shareholders will receive 0.7997 shares of Seacoast common stock Consideration • Options are rolled over into Seacoast options based on the positiv
Slide 28: Seacoast's Integrated Delivery Model Supports Our Growth Strategy
Seacoast’s Integrated Delivery Model Supports Our Growth Strategy Strong momentum in usage of digital tools and other non-branch delivery channels, and tools to equip our teams to outperform % of consumer deposits % of business deposits 59% completed outside of the 46% completed outside of the branc
Slide 29: 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 methods other than Generally Accepted Accounting Principles trends and facilitate comparisons with the performance o
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20 Net Income $ 22,944 $ 31,410 $ 33,719 $ 29,347 $ 22,628 $ 88,073 $ 48,417 Total noninterest income 19,028 15,322 17,671 14,930 16,946 52,021 46,640
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20 Adjusted Noninterest Expense $ 46,811 $ 43,400 $ 43,879 $ 41,906 $ 45,432 $ 134,090 $ 127,590 Foreclosed property expense and net (loss)/gain on sa
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20 Return on Average Tangible Assets (ROTA) 1.00 1.48 1.70 1.49 1.20 1.37 0.93 Impact of other adjustments for Adjusted Net Income 0.23 0.04 0.05 0.01
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'21 2Q'21 1Q'21 4Q'20 3Q'20 3Q'21 3Q'20 Net Interest income1 $ 71,455 $ 65,933 $ 66,741 $ 68,903 $ 63,621 $ 204,129 $ 194,300 Accretion on acquired loans (3,483) (2,886) (2,868) (4,448) (
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