Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q2 2020 Earnings Presentation
34 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jul 23, 2020
Slide 1: Earnings Presentation Second Quarter 2020 Results
Earnings Presentation SECOND QUARTER 2020 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 banking industry; our concentration in commercial real estate loans; the failure of assumptions and Section 27A of the Securities Act of 1933 and Se
Slide 3: Valuable Florida Franchise, Well Positioned with Strong Capital, Liquidity and Disciplined Credit Culture
Valuable Florida Franchise, Well Positioned with Strong Capital, Liquidity and Disciplined Credit Culture Seacoast Customer Map • $8.1 billion in assets as of June 30, • Highly disciplined credit portfolio 2020, operating in the nation’s third- most populous state • Prudent liquidity position • Stro
Slide 4: COVID-19 Response
COVID-19 Response Associates Operations and Service Levels • Substantially all non-retail associates working • Branches are open for appointments and drive-thru remotely • Heightened cleaning and protection protocols • Staggering shifts and locations, including for • Expanded call center staffing to
Slide 5: Integrated Delivery Model Has Enabled The Bank To Effectively Serve Customers Throughout The Pandemic
Seacoast’s Integrated Delivery Model Has Enabled The Bank To Effectively Serve Customers Throughout The Pandemic SECOND QUARTER 2020 EARNINGS PRESENTATION All metrics as of 2Q'20 5
Slide 6: Consistent Growth in NII, NIM Impacted by Lower Rates and Liquidity
Consistent Growth in NII, NIM Impacted by Lower Rates and Liquidity ($ In Thousands) $67,388 $63,291 $60,219 $61,027 $61,846 3.94% 3.89% 3.93% 3.84% 3.70% 3.67% 3.64% 3.63% 3.66% 3.54% 3.46% 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 Net Interest Income Net Interest Margin NIM, excluding accretion on acquired lo
Slide 7: Continued Strong Performance in Noninterest Income
Continued Strong Performance in Noninterest Income 1 Noninterest Income ($ in thousands) Adjusted Noninterest Income ($ in thousands) $14,688 $15,006 $14,669 $14,043 $13,577 $886 $887 $886 $13,776 $927 $927 $887 $3,534 $3,516 $2,704 $3,497 $2,304 BOLI $2,238 BOLI 2 3 Other Income $691 $139 $181 Othe
Slide 8: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control 1 Noninterest Expense ($ in thousands) Adjusted Noninterest Expense ($ in thousands) $47,798 $4,703 $42,399 $41,000 $41,482 $3,363 $40,676 $5,441 $38,027 $4,842 $4,570 2 $5,518 Other Expense $5,690 $2,277 Other Expense 2 $4,769 $2,242 Legal & Profession
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 74% 66% 64% 61% 60% 59% 58% 58% 57% 58% 57% 57% 57% 56% 56% 54% 53% 53% 54% 51% 50% 50% 49% 49% 48% 48% 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19
Slide 10: Loan Growth Increased as a Result of PPP Production
Loan Growth Increased as a Result of PPP Production Total Loans Outstanding ($ in millions) $5,772 • As of June 30, Seacoast has approved over 5,000 loans $5,198 $5,317 $576 under the Paycheck Protection Program ("PPP") totaling $4,888 $4,986 $5,196 $576 million. • Loans outstanding totaled $5.8 bil
Slide 11: Seacoast's Lending Strategy Has Resulted in a Diverse Loan Portfolio
Seacoast's Lending Strategy Has Resulted in a Diverse Loan Portfolio At June 30, 2020 ($ in thousands) Paycheck Acquisition, Protection Development Program & Construction • Construction and land development and commercial $576,450 $298,835 10% 5% real estate loans, as defined in regulatory guidance,
Slide 12: Paycheck Protection Program
Paycheck Protection Program ($ in thousands) PPP Balance # of PPP Loans 4,722 $301,206 $213,688 $61,557 322 23 Loan size < $350 Loan size $350 to $2,000 Loan size > $2,000 • $576.5 million outstanding at June 30, 2020, net of • Average SBA fee of 3.84%. deferred fees. • $5.1 million in interest and
Slide 13: Deferred Loans
Deferred Loans At June 30, 2020 ($ in millions) Deferred Loans Loans Not Deferred 10% 32% $148 30% $445 $320 17% $1,320 $131 $947 $14 5% $756 $626 $18 9% $284 $184 Acquisition, Owner Occupied Commercial Residential Commercial Consumer Development Commercial Real Estate Real Estate Real Estate & Fina
Slide 14: Deferred Loans
Deferred Loans At June 30, 2020 ($ in millions) New Deferrals Deferral Expirations $583 $512 $339 $245 $110 $110 $115 $68 $46 $27 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Payments are scheduled to resume on 39% of deferred loans in the third quarter of 2020 and 61% of deferred loans in the fourth qua
Slide 15: OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Type and Industry
OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Type and Industry Acquisition, OOCRE & Development Commercial & % of Total % of Category ($ in thousands) Real Estate Construction Total Loans Deferred Loans Deferred Office Building $ 708,635 $ 10,153 $ 718,788 12% $ 196,419 27% Retail 4
Slide 16: Commercial & Financial Portfolio Exhibits Significant Industry Diversification
The Commercial & Financial Portfolio Exhibits Significant Industry Diversification Commercial & % of Total % of Category ($ in thousands) Financial % of Total Loans Loans Deferred Loans Deferred Management of Companies1 $ 163,322 3% 4% $ 36,254 22% Professional, Scientific, Technical & Other Service
Slide 17: Investment Securities Performance and Composition
Investment Securities Performance and Composition Portfolio yield declined 34 basis points to 2.68% from 3.02% in the prior quarter. 1Q'20 yield included 22 basis points of Agency CMBS make- whole prepayments, which declined to 11 basis points in 2Q'20, while the remainder of the yield decline can b
Slide 18: Investment Securities Performance and Composition
Investment Securities Performance and Composition Our portfolio remains primarily backed by U.S. government agencies. Non-guaranteed mortgage bonds are absent any hotels, shopping, or industrial exposure and is 100% comprised of housing collateral. The CLO portfolio includes only AAA and AA bonds. I
Slide 19: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) • Total deposits increased $779 million, or 13% , $6,667 quarter-over-quarter and increased $1.1 billion, or 20%, compared to the second quarter of 2019. $5,887 $1,179 $5,541 $5,673 $5,585 • Overall cost of
Slide 20: Cost of Deposits
Cost of Deposits Deposit Mix and Cost of Deposits Trended Cost of Deposits 0.76% 0.73% 0.61% 0.57% 0.31% Fed Funds Cost of Deposits 9% 9% 9% 9% 9% 2.50%2.50%2.50% 20% 20% 21% 21% 20% 2.25% 2.00% 2.00% Cost of Deposits 1.75% 1.75% 21% 21% 20% 20% 18% Savings 1.50% Int Bearing Demand Money Market 11%
Slide 21: Continued Strong Asset Quality Trends Through Second Quarter
Continued Strong Asset Quality Trends Through Second Quarter ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO / Loans NPL - Non-Acquired NPL- Acquired Total NPL Ratio $3,225 $7,803 $5,965 $2,111 $5,644 $7,684 $1,841 $22,248 $1,751 $6,986 $20,400 $20,990 $17,898 $973 $15,810 0.25% 0.15% 0
Slide 22: Conservative Liquidity Position
Conservative Liquidity Position Total liquidity resources of $3.7 billion at June 30, $3,681 2020: • Cash and cash equivalents of $524 million $3,372 • Unsecured lines of credit of $135 million $3,141 • Lines of credit under lendable collateral value of $1.4 billion $1,646 • $882 million debt securi
Slide 23: Strong Capital
Strong Capital Tangible Book Value / Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share $19.45 11.1% 11.1% $18.70 $19.13 $18.82 10.7% 10.7% $18.08 10.2% $15.11 $14.30 $14.76 $14.42 $13.65 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 2Q'19 3Q'19 4Q'19 1Q
Slide 24: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 $11.39 $11.15 $10.95 $10.55 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 • Compounded annual growth rate of 12% in tangible book value per share in the last three year
Slide 25: Contact Details
Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF SECOND QUARTER 2020 EARNINGS PRESENTATION 25
Slide 26: Appendix
Appendix SECOND QUARTER 2020 EARNINGS PRESENTATION 26
Slide 27: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Commercial pipeline at period end $ 117,042 $ 171,125 $ 277,788 $ 396,422 $ 300,207 $ 117,042 $ 300,207 Commercial loan originations1 106,857 183,330 304,343 325,406 2
Slide 28: Loan Portfolio at June 30, 2020 (Excluding PPP)
Loan Portfolio at June 30, 2020 (Excluding PPP) Balances on Payment Allowance for Purchase ($ in thousands) Outstandings Deferral % of Category Credit Losses % of Category Discount % of Category Acquisition, Development & Construction $ 298,835 $ 14,488 5 % $ 7,283 2.44 % $ 639 0.21 % Owner Occupied
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 trends methods other than Generally Accepted Accounting Principles and facilitate comparisons with the performance o
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Net Income $ 25,080 $ 709 $ 27,176 $ 25,605 $ 23,253 $ 25,789 $ 45,958 Total noninterest income 15,006 14,688 16,376 13,943 13,577 29,694 26,413 Sec
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Adjusted Noninterest Expense $ 40,676 $ 41,482 $ 35,967 $ 36,911 $ 38,027 $ 82,158 $ 79,125 Foreclosed property expense and net gain/(loss) on sale
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Average Shareholders' Equity $ 1,013,095 $ 993,993 $ 976,200 $ 946,670 $ 911,479 $ 1,003,544 $ 895,610 Less average goodwill and intangible assets (
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Net interest margin excluding PPP and accretion on acquired loans 3.46 % 3.66 % 3.63 % 3.64 % 3.67 % 3.56 % 3.71 % Impact of accretion on acquired l
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $240 $1,483 $(121) $(1,230) $25,452 $25,080 ($ in thousands) Net Income Amortization Merger Tax Effect Securities Adjusted of Intangibles Related of Adjustments Gains, Net Net Income Charges SECOND QUARTER 2020 EARNINGS PRESENTATION 34
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