Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Investor Presentation (April 2018)
54 slides from Seacoast Banking Corporation Of Florida's investor presentation, Apr 30, 2018
Slide 1: Investor Presentation Q1 2018
Contact: (email) Chuck.Shaffer@SeacoastBank.com (phone) 772.221.7003 (web) www.SeacoastBanking.com Investor Presentation Q1 - 2018
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward - Looking Statements 2 This press release contains "forward - looking statements" within the meaning, and protections, of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 , including, without limitation, statements
Slide 3: Agenda
Agenda 3 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 4: Valuable Florida Bank Franchise With Balanced Growth Strategy
• $5.9 billion in assets operating in the nation’s third most - populous state • Strong and growing presence in four of Florida’s most attractive MSAs ‒ #1 Florida based bank in the Orlando MSA ‒ Growing share in West Palm Beach ‒ #2 share in Port St Lucie MSA ‒ Growing presence in Tampa MSA • Inves
Slide 5: Seacoast Has Outperformed the Major Indices
Florida Bank Peers (1) 5 Seacoast Has Outperformed the Major Indices… S&P 500 SBC F KBW Regional Banking Index Source: Bloomberg Note: Market data as of 3/30/2018 (1) Florida Bank Peers includes Florida headquartered banks with greater than $200 m illion and less than $30 billion in market capitaliz
Slide 6: ...And is Doing so Prudently
FCB Finl Hldgs Inc CenterState Bank Cap Bank Finl Corp State Bk Finl Corp BankUnited Inc Capital City Bank Home BcShrs Inc South Bcshs Inc Sterling Bncp Ameris Bancorp Eagle Bancorp Valley Natl Bncp Bk of the Ozarks 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 0.90x 1.40x 1.90x 2.40x 2.90x 3.40x 3.90x 4.
Slide 7: Agenda
Agenda 7 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 8: 1Q 2018 Highlights
8 1Q 2018 Highlights With a growing presence in Florida’s most attractive markets, Seacoast is one of Florida’s top - performing banking franchises. • Earnings per share totaled $0.38 on a GAAP basis, and $0.40 per share on an adjusted basis 1 . • Net income increased 127 % YoY to $18.0 million, whi
Slide 9: Net Interest Income and Margin
9 ($ in thousands) • Net interest income 1 totaled $49.9 million, up $1.5 million or 3% from the prior quarter and $11.5 million or 30% from the prior year quarter. • Net interest margin was 3.80% in the current quarter compared to 3.71% in the prior quarter and 3.63% in the first quarter of 20 17.
Slide 10: Noninterest Income
10 $2,422 $2,435 $2,626 $2,566 $2,672 $2,494 $2,671 $2,582 $2,836 $2,942 $1,257 $1,268 $1,318 $1,214 $1,380 $1,552 $1,272 $2,138 $1,487 $1,402 $1,447 $2,064 $1,981 $2,174 $2,946 $757 $836 $1,100 $1,056 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000
Slide 11: Noninterest Expense
11 $16,389 $18,225 $18,097 $15,774 $18,274 $3,267 $3,108 $3,211 $3,216 $3,643 $4,625 $4,750 $4,500 $4,939 $5,225 $6,641 $7,746 $6,998 $7,475 $8,563 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Other Expense Occupancy / Telephone Data Processing Cost
Slide 12: Efficiency Ratio
12 68.30% 68.60% 76.30% 72.6% 81.7% 78.0% 68.6% 62.4% 71.1% 73.9% 58.9% 64.0% 57.8% 40% 50% 60% 70% 80% 90% 100% 110% GAAP - Efficiency 67.5% 67.5% 68.2% 69.1% 69.6% 64.8% 63.1% 60.8% 64.7% 61.2% 57.7% 52.6% 57.1% 40% 50% 60% 70% 80% 90% 100% 110% Adjusted - Efficiency 1 1 Non - GAAP measure, see “E
Slide 13: Total Loans Outstanding
13 Total Loans Outstanding (in millions) • First quarter loans totaled $3.9 billion, an increase of $923 million or 31% from year - ago levels. Adjusting for acquisitions, loans grew $265 million or 9% year over year. • Pipelines were $123 million in commercial, $71 million in mortgage, and $50 mill
Slide 14: Deposit Balances
14 • Total deposits increased 3% from the prior quarter, and 28% from the first quarter of 2017. On an annualized basis deposits gre w 11% quarter over quarter, and demand deposits grew 25% quarter over quarter. • Transaction accounts represent 53% of total deposits, and have increased 20% year over
Slide 15: Credit Quality
15 Net Charge - offs Nonperforming Loans ALLL $24,562 $26,000 $26,232 $27,122 $28,118 0.95% 0.95% 0.91% 0.90% 0.90% 0.83% 0.78% 0.77% 0.71% 0.72% 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 ALLL ALLL Ratio - Non-Acquired ALLL Ratio - Total Non - Acquired ALLL to Nonperforming $93 ($101) $279 $1,336 $1 0.01% - 0.0
Slide 16: Maintaining Strong Capital to Support Balanced Growth Opportunities
Maintaining Strong Capital to Support Balanced Growth Opportunities 16 Tangible Book Value / Book Value Per Share $10.41 $10.55 $10.95 $11.15 $11.39 $12.34 $13.29 $13.66 $14.70 $14.94 1Q 17 2Q 17 3Q 17 4Q 17 1Q 18 Tangible Book Value Per Share Book Value Per Share 10.7% 11.2% 12.8% 13.5% 14.8% 1Q 17
Slide 17: Agenda
Agenda 17 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 18: Seacoast's Differentiated Strategy
18 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 19: Meeting Customer Needs Profitably Through an Evolving Distribution Network
DISTRIBUTION NETWORK 19 Meeting Customer Needs Profitably Through an Evolving Distribution Network Strategic Execution Framework BRANCH COMMERCIAL BANKING OFFICE MOBILE ONLINE ATMs CALL CENTER CUSTOMER’S OFFICE Talent, Technology and Analytics ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES
Slide 20: Balanced Growth Strategy Delivering Results Since January 2014
20 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 Total Excluding Acquisitions Total Including Acquisitions $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Total Excluding Acquisitions Total Including Acquisitions Organic Deposit Growth Up 31%, 146% Including M&A Organic Loan Growth Up 81%, 199% Including M&A Bala
Slide 21: Focus On Business Banking Driving Growth In Business Loans
21 Seacoast’s Focus On Business Banking Is Driving Significant Growth In Business Loans Outstanding • Focused on businesses with revenues $5mm+ in specific industry verticals • Five offices in key metro areas of Florida (three in South Florida, two in Orlando) • Comprehensive relationship approach:
Slide 22: Unique Approach to Serving Our Customers
Unlike Other Community Banks, Seacoast Uses its Vast Data Set to Recognize and Meet Customer Needs Automated Offers Inbound Call Outbound Call In Branch Email ATMs Online Banking Direct Mail Mobile Banking 22 Unique Approach to Serving Our Customers ( Patent Pending ) Behavioral Data FIVE CUSTOMER N
Slide 23: Meeting Customer Needs Vastly Expands Sales Opportunity: Loans
23 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2013 2014 2015 2016 2017 Original Sales Rate
Slide 24: Meeting Customer Needs Vastly Expands Sales Opportunity: Deposits
24 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) - 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 2013 2014 2015 2016 2017 Original Sale
Slide 25: Meeting Customer Needs Vastly Expands Sales Opportunity: Debit Cards
25 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 2013 2014 2015 2016
Slide 26: Continued Improvements In Monthly Revenue Per Customer
$30 $40 $50 $60 $70 $80 $90 2015-06 2015-09 2015-12 2016-03 2016-06 2016-09 2016-12 2017-03 2017-06 2017-09 2017-12 Legacy Markets Total Bank 26 Continued Improvements In Monthly Revenue Per Customer Indicate Progress In Monetizing Existing Customers As Well As Adding Valuable Customers To The Franc
Slide 27: Multi-Channel Servicing is a Key Component of Our Evolution
84.4% 15.6% 60% 80% 100% 27 Half of all routine branch transactions have been shifted to lower cost channels like ATMs and Mobile. This gives Seacoast flexibility as it evolves its distribution network. Multi - Channel Servicing is a Key Component of Our Evolution … And Seacoast is Aggressively Movi
Slide 28: Growing While Rationalizing Branches
As a Result, Seacoast is Growing While Rationalizing Branches Seacoast continues to create shareholder value via operating leverage in its branch network. As of 1Q 2018, Deposits Increased 160% While Branches Increased Only 4 4% S ince YE 2013 28 $1,806 $2,417 $2,844 $3,523 $ 4,593 $4,720 $53 $56 $6
Slide 29: Seacoast's Differentiated Strategy
29 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 30: Advantages in Credit Risk Management
30 We Have a Number of Advantages Related to Our Approach to Credit Risk Management 1 Strong, skilled, independent underwriting teams that confirm solid, multiple repayment sources 2 Well - defined portfolio limits and elevated credit portfolio management/monitoring 3 Digestible loan sizes and no sy
Slide 31: Strong Growth Intentionally Balanced and Not Dependent on CRE Loans
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 Dec, 2012 Dec, 2013 Dec, 2014 Dec, 2015 Dec, 2016 Dec-17 Mar-18 Construction Factoring Consumer Marine Other C&I OOCRE Income CRE Residential 31 Strong Growth Has Been Intentionally Balanced and Not Dependent on CRE Loans Loans Outstand
Slide 32: Seacoast Conservative Risk Profile
32 Investor Presentation Top 10 loan relationships represent 30% of total risk based capital, down by 50% since FY ’11 (as of Q1 ‘18) Seacoast Conservative Risk Profile Well Positioned For Sustainable Value Creation $332,000 Down 41% Average Commercial Loan Size Change in Dollars (since FYE 2011)
Slide 33: Our Approach To CRE Is Very Different Than Florida Peers
33 Investor Presentation CRE loans as a percent of total capital remain relatively flat and intentionally below Florida peers (191% vs 257% peer median) 206% 271% 225% 290% 191% 257% 100% 150% 200% 250% 300% 350% SBCF Florida Peers Q4 2015 Q4 2016 Q4 2017 CRE loans as a Percent of T otal C apital So
Slide 34: Seacoast's Differentiated Strategy
34 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 35: Acquisition Strategy Expands Customer Franchise
35 Acquisition Strategy Expands Customer Franchise GulfShore Bank: April 2017 BMO Harris Bank Orlando Operations June 2016 Floridian Financial Group March 2016 Grand Bank July 2015 BankFIRST October 2014 2014 2015 2016 2017 20% a verage IRR 4th largest Florida bank, up from 6th in 2014 #1 Florida he
Slide 36: Seacoast's Differentiated Strategy
36 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 37: The Florida Market
Southwest Florida Pop: 1,570,228 Pop Growth: 9.6% Treasure Coast/ Palm Beach Co. Pop: 1,956,515 Growth: 7.3% I - 4 Corridor Pop: 7,128,386 Growth: 8.5% *US Census Data Among the top 10 fastest growing states Surpassed New York to become the third largest state in 2014 Florida’s economy accelerating
Slide 38: Rapid Decline in Florida Headquartered Banks Increases Scarcity Value
38 Number of Banks Headquartered in Florida per Year Rapid Decline in Florida Headquartered Banks Increases Seacoast’s Scarcity Value Source: SNL Financial and FDIC.gov. Note: Includes Commercial Banks, Savings Banks, and Savings & Loan Associations. Number of banks measured at year end with the exc
Slide 39: Seacoast's Differentiated Strategy
39 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 40: Strength In Data And Analytics: Customer Profitability
40 Because of Our Strength In Data And Analytics, We Can Examine: We Know Our Customers’ Profitability and Manage Them Accordingly Customer Potential Low High Current Value High Retain & Engage Retain & Grow Low Manage & Lower Cost to Serve Grow! With this, We Can See the Characteristics and Behavio
Slide 41: Understanding the Path to Value Creation at a Customer Level
Median 75th Percentile 41 Opportunity Sizing Engine ( Patent Pending ) Consumer Lifetime Value Small Business Lifetime Value 3x Median 75th Percentile 5x Median 75th Percentile 3x Commercial Lifetime Value Source: Seacoast Proprietary Data Understanding the Path to Value Creation at a Customer Level
Slide 42: Opportunity Sizing Engine
Opportunity Sizing Engine Used to understand precise tactics to generate value for customers and shareholders 42 Bringing Together Marketing Automation, Customer Life Time Value (“CLTV”) and the Opportunity Sizing Engine CLTV Used for understanding the characteristics of value and potential at an in
Slide 43: Seacoast's Differentiated Strategy
43 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 44: Revitalized Board Aligned with Our Balanced Growth Strategy
44 Revitalized Board Aligned with Our Balanced Growth Strategy ADDITIONS Herb Lurie 2016 Jacqueline Bradley May 2015 Maryann Goebel Feb. 2014 Roger Goldman Feb. 2012 Julie Daum October 2013 Dennis Arczynski July 2013 Timothy Huval 2016 2012 2013 2014 2015 2016 2017 Al Monserrat Feb 201 7
Slide 45: We Have Methodically Added Strong Talent in Key Areas
45 We Have Methodically Added Strong Talent in Key Areas Dennis S. Hudson III Chairman & CEO Charles M. Shaffer CFO & Head of Strategy Charles K. Cross Jr. Executive Vice President & Commercial Banking Executive Julie Kleffel Executive Vice President & Community Banking Executive Joe Forlenza Chief
Slide 46: Agenda
Agenda 46 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 47: Our Future Outlook is Based on Four Key Principles
47 Our Future Outlook is Based on Four Key Principles 1 Our primary driver for growth will be strong performance from our business units 2 Our goal is to continue to drive profitability and growth to the maximum level without increasing our overall risk profile 3 Opportunistic acquisitions will be a
Slide 48: Vision 2020 Connects Current and Planned Innovations
How We Sell • Continue to develop direct sales channels and offerings based on customer needs and preferences • Simplify processes for our customers and bankers • Reduce our cost to acquire How We Service • We are outpacing our peers in engaging our customers with self - serve options for routine ba
Slide 49: Reiterating Vision 2020 Objectives
Reiterating Vision 2020 Objectives 49 • The Company is on track to achieve its Vision 2020 objectives. • The enactment of the Tax Cuts and Jobs Act of 2017 is expected to enhance the Company’s ability to achieve these objectives. • Over time, we will continue to update our targets as greater clarity
Slide 50: Contact Details
Charles M. Shaffer Executive Vice President Chief Financial Officer (772) 221 - 7003 Chuck.Shaffer@seacoastbank.com INVESTOR RELATIONS www.SeacoastBanking.com NASDAQ: SBCF Contact Details: Seacoast Banking Corporation of Florida 50
Slide 51: +YEARS
+YEARS
Slide 52: Non-GAAP Financial Information Notice
This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”) . The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax, preprovision income . Management us
Slide 53: GAAP to Non-GAAP Reconciliation
( Q1 17 – Q1 18) GAAP to Non - GAAP Reconciliation 53 (Dollars in thousands except per share data) First Quarter: 2018 Fourth Quarter: 2017 Third Quarter: 2017Second Quarter: 2017 First Quarter: 2017 Net income (loss) 18,027 13,047 14,216 7,676 7,926 Gain on sale of VISA Stock 0 (15,153) 47 (21) 0 S
Slide 54: GAAP to Non-GAAP Reconciliation
GAAP to Non - GAAP Reconciliation ( Q1 17 – Q1 18) 54 (Dollars in thousands) First Quarter: 2018 Fourth Quarter: 2017 Third Quarter: 2017Second Quarter: 2017 First Quarter: 2017 Adjusted Revenue 62,160 59,603 57,230 54,623 48,070 Impact of FTE adjustment 91 174 154 164 211 Adjusted Revenue on a full
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