Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q1 2023 Earnings Presentation
43 slides from Seacoast Banking Corporation Of Florida's earnings presentation, May 23, 2023
Slide 1: Investor Presentation First Quarter 2023
INVESTOR PRESENTATION FIRST QUARTER 2023
Slide 2: Forward-looking statements
2FIRST QUARTER 2023 INVESTOR PRESENTATION 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 1934, as amended, including, without limitation, statemen
Slide 3: Agenda
01 ABOUT SEACOAST BANK 02 OUTLOOK 03 COMPANY PERFORMANCE 04 APPENDIX AGENDA
Slide 4: About Seacoast Bank
AGENDA ABOUT SEACOAST BANK
Slide 5: Seacoast Bank overview
5FIRST QUARTER 2023 INVESTOR PRESENTATION • $15.3 billion in assets as of March 31, 2023, operating in the nation’s fastest growing and third most populated state • Strong presence in Florida’s most attractive markets ▪ #1 Florida-based bank in Orlando MSA ▪ #1 Florida-based bank in Palm Beach count
Slide 6: Proven track record of successful and value-added integrations
6FIRST QUARTER 2023 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 2023 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 highlights
10FIRST QUARTER 2023 INVESTOR PRESENTATION • Pre-tax pre-provision earnings1 increased 1% to $46.3 million. On an adjusted basis, pre-tax pre-provision earnings1 increased 7% to $71.1 million. • Pre-tax pre-provision return on average tangible assets1 of 1.58%. Adjusted pre-tax pre-provision return
Slide 11: Continued Growth in Net Interest Income
11FIRST QUARTER 2023 INVESTOR PRESENTATION Continued Growth in Net Interest Income ($ in th ou sa nd s) $76,639 $81,764 $88,399 $119,858 $131,351 3.25% 3.38% 3.67% 4.36% 4.31% 3.10% 3.26% 3.58% 4.01% 3.78% Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans 1Q'22 2Q'22
Slide 12: Noninterest income
12FIRST QUARTER 2023 INVESTOR PRESENTATION $15,825 $17,633 $20,221 $2,801 $3,996 $4,242 $4,128 $4,650 $4,694 $2,659 $2,886 $3,063$1,686 $426 $426$3,217 $3,344 $4,779$1,334 $1,526 $1,916 BOLI Other Income Insurance Agency Income Mortgage Banking Wealth Management Interchange Income Service Charges 1Q
Slide 13: A Continued Focus on Building Wealth Management
13FIRST QUARTER 2023 INVESTOR PRESENTATION $1,025 $1,158 $1,161 $1,239 $1,228 $1,162 $1,228 $1,387 $1,518 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Assets Under Management ($ in millions) 20% CAGR A Continued Focus on Building Wealth Management Assets under management totaled $1.5 billio
Slide 14: Noninterest expense
14FIRST QUARTER 2023 INVESTOR PRESENTATION $50,705 $70,431 $81,925 $30,671 $44,760 $51,094 $5,524 $7,336 $8,002 $142 $1,239 $6,070 $8,213 $9,001 $1,899 $2,683 $2,687 $5,610 $6,550 $8,459 Other Expense Legal & Professional Occupancy & Telephone FDIC Assessment Provision for Unfunded Commitments Data
Slide 15: Efficiency Ratio Trend
15FIRST QUARTER 2023 INVESTOR PRESENTATION Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control Pa lm B ea ch C om m un ity a nd N or th S ta r Ba nk A cq ui si tio n 60% 50% 62% 48% 53% 55% 60% 54% 62% 56% 57% 63% 65% 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22
Slide 16: Disciplined Approach to Lending in a Strong Florida Economy
16FIRST QUARTER 2023 INVESTOR PRESENTATION $6,451 $6,542 $6,691 $8,145 $10,134 $1,976 4.30% 4.29% 4.45% 5.29% 5.86% 4.06% 4.13% 4.31% 4.80% 5.17% Yield Excluding Accretion on Acquired Loans Reported Yield Professional Bank Total Loans 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Total Loans End-of-Period ($ in mil
Slide 17: Lending Strategy Sustains a Diverse Loan Portfolio
17FIRST QUARTER 2023 INVESTOR PRESENTATION Commercial Real Estate - Owner Occupied $1,652,491 16% Construction and Land Development $757,835 7% Consumer $301,740 3% Commercial & Financial $1,650,485 16% Commercial Real Estate - Non-Owner Occupied $3,412,051 34% Residential Real Estate $2,354,394 23%
Slide 18: Loan Portfolio Mix
18FIRST QUARTER 2023 INVESTOR PRESENTATION At March 31, 2023 Loan Portfolio Mix CRE-Retail, 9.92% CRE-Office, 6.10% CRE-Multifamily 5+, 4.69% CRE-Hotel/Motel, 4.02% CRE-Industrial/Warehouse, 3.54% CRE-Other, 5.39% OOCRE-Office, 4.83% OOCRE-Other, 11.47% Construction & Land Development, 7.48% Commerc
Slide 19: Non-owner Occupied CRE in Florida's Strongest Markets
19FIRST QUARTER 2023 INVESTOR PRESENTATION Non-owner Occupied Commercial Real Estate in Florida’s Strongest Markets Non-owner Occupied Commercial Real Estate by MSA Balance ($ in thousands) Balance % of Total Loans Miami / Dade County $ 793,660 7.83 % Orlando-Kissimmee, FL MSA 462,385 4.56 West Palm
Slide 20: Non-owner Occupied Commercial Real Estate
20FIRST QUARTER 2023 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 $ 1,005,724 9.92 % $ 1,919 $ 924 $ — 52 % Office 618,377 6.10 1,649 — —
Slide 21: Allowance for Credit Losses and Purchase Discount
21FIRST QUARTER 2023 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 $ 757,835 $ 6,540 0.86 % $ 13,018 1.72 % Owner Occupied Commerci
Slide 22: Continued Strong Asset Quality Trends
22FIRST QUARTER 2023 INVESTOR PRESENTATION Net Charge-Offs (Recoveries) $8,139 $7,591 $3,027 $841 $3,1880.16% 0.13% 0.05% 0.01% 0.14% NCO NCO/Average Loans 2019 2020 2021 2022 1Q'23 (% annualized) ($ in thousands) Nonperforming Loans and Classified Assets $26,955 $36,110 $30,598 $28,843 $50,787 0.52
Slide 23: Investment Securities Performance and Composition
23FIRST QUARTER 2023 INVESTOR PRESENTATION Investment Securities Performance and Composition Unrealized Loss in Securities as of March 31, 2023 (in thousands) Amortized Cost Fair Value Net Unrealized Gain /(Loss) Δ from 4Q’22 Available for Sale Government backed $ 43,448 $ 43,384 $ (64) $ 102 Agency
Slide 24: Growing Deposit Franchise Supported by Attractive Markets
24FIRST QUARTER 2023 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $9,244 $9,189 $8,765 $9,982 $12,310 $2,033 0.50% 1.75% 3.25% 4.50% 5.00% 0.06% 0.06% 0.09% 0.21% 0.77% Total Deposits Professional Bank Fed Funds Cost of Deposits 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Growing Deposit Franchise
Slide 25: Granular, Diverse and Relationship Focused Deposit Base
25FIRST QUARTER 2023 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $9,244 $9,189 $8,765 $9,982 $12,310 Transaction Accounts Savings Money Market Time Deposits 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 Granular, Diverse and Relationship Focused Deposit Base Noninterest demand deposits represent 37
Slide 26: Stable Core Deposit Base
26FIRST QUARTER 2023 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $9,982 $10,047 $10,018 $9,902 $9,865 $11,872 $11,968 $11,842 $11,907 $12,193 $12,212 $12,056 $12,182 $12,310 Noninterest Demand Interest-Bearing Demand Money Market Savings Time Deposits Dec 31 Jan 6 Jan 13 Jan 20 Jan
Slide 27: Liquidity Sources vs Uninsured Deposits
27FIRST QUARTER 2023 INVESTOR PRESENTATION Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,356 $3,888 $791 $2,661 $431 $1,496 $300 $677 Borrowing Capacity + Cash Uninsured and Uncollateralized Deposits Total Cash & Borrowing Capacity = $6
Slide 28: Tangible Book Value and Capital
28FIRST QUARTER 2023 INVESTOR PRESENTATION $17.12 $16.66 $15.98 $14.69 $14.25 $22.15 $21.65 $20.95 $22.45 $24.24 Tangible Book Value Per Share Book Value Per Share 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 9.9% 9.7% 9.8% 9.1% 8.4% 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 17.7% 17.7% 17.5% 15.8% 14.6% 16.8% 16.8% 16.5% 14.
Slide 29: Investor Relations
Michael Young SVP, Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 30: Appendix
30FIRST QUARTER 2023 INVESTOR PRESENTATION Appendix
Slide 31: Loan Production and Pipeline Trend
31FIRST QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Commercial pipeline at period end $ 297,380 $ 395,652 $ 530,430 $ 476,693 $ 619,547 Commercial loan originations 321,665 489,605 340,438 461,855 372,986 Residential pipeline-saleable at pe
Slide 32: Florida's Economic Strength Continues, and Acquisition Opportunities Remain
32FIRST QUARTER 2023 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. 14.6% Between 2010 an
Slide 33: Florida Population Trends
33FIRST QUARTER 2023 INVESTOR PRESENTATION Florida Population Trends Florida’s economic strength is evident. Individual and business migration has surged, and the economy has diversified across finance and technology. Florida’s population growth has roughly doubled the national average. That trend i
Slide 34: Seacoast's Approach to Customer Analytics Is a Unique Advantage
34FIRST QUARTER 2023 INVESTOR PRESENTATION Seacoast’s Approach to Customer Analytics Is a Unique Advantage
Slide 35: Unique Approach to Growing Customer Value
35FIRST QUARTER 2023 INVESTOR PRESENTATION Unique Approach to Growing Customer Value
Slide 36: Successful online and mobile upgrade deliver an improved customer experience
36FIRST QUARTER 2023 INVESTOR PRESENTATION Successful online and mobile upgrade deliver an improved customer experience 121%reduction of inbound calls to telephone support center for routine password changes or balance checks Improvement in App Store rating performance Seacoast Bank successfully upg
Slide 37: Building a Modern Technology Stack That Scales with Growth
37FIRST QUARTER 2023 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 38: Professional Holding Corp. Acquisition
38FIRST QUARTER 2023 INVESTOR PRESENTATION Fair Value of Assets and Liabilities Acquired (Preliminary) (In thousands) 1/31/2023 Assets: Cash and cash equivalents $ 141,680 Investment securities 167,059 Loans 1,991,713 Bank premises and equipment 2,478 Core deposit intangibles 48,885 Goodwill 248,091
Slide 39: Explanation of Certain Unaudited Non-GAAP Financial Measures
39FIRST QUARTER 2023 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 40: Quarterly Trend
40FIRST QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Net Income $ 11,827 $ 23,927 $ 29,237 $ 32,755 $ 20,588 Total noninterest income 22,445 17,651 16,103 16,964 15,373 Securities losses/(gains), net (107) (18) 362 300
Slide 41: Quarterly Trend
41FIRST QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Adjusted Noninterest Expense $ 81,925 $ 70,431 $ 56,899 $ 51,663 $ 50,705 Foreclosed property expense and net loss (gain) on sale (195) 411 (9) 968 164 Provision for
Slide 42: Quarterly Trend
42FIRST QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Return on Average Assets (ROA) 0.34 % 0.78 % 1.10 % 1.21 % 0.79 % Impact of removing average intangible assets and related amortization 0.18 0.16 0.07 0.08 0.06 Retur
Slide 43: Quarterly Trend
43FIRST QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Yield on Loans1 5.86 % 5.29 % 4.45 % 4.29 % 4.30 % Impact of accretion on acquired loans (0.69) (0.49) (0.14) (0.16) (0.24) Yield on loans excluding accretion on acqu
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