Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q2 2021 Earnings Presentation
30 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jul 22, 2021
Slide 1: Earnings Presentation Second Quarter 2021 Results
Earnings Presentation SECOND 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
2 SECOND QUARTER 2021 EARNINGS PRESENTATION Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, includ
Slide 3: Valuable Florida Franchise, Well Positioned for Growth
3 SECOND QUARTER 2021 EARNINGS PRESENTATION • Highly disciplined credit portfolio • Strong liquidity position • Prudent capital position to support further organic growth and opportunistic acquisition • Steady increase in shareholder value with tangible book value per share increasing 13% year-over-
Slide 4: Florida's Economic Growth Continues to Accelerate
4 SECOND QUARTER 2021 EARNINGS PRESENTATION 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 an
Slide 5: Second Quarter 2021 Highlights
5 SECOND QUARTER 2021 EARNINGS PRESENTATION Second Quarter 2021 Highlights All comparisons are to second quarter 2020 unless otherwise stated. • Net income of $31.4 million, an increase of 25%. Adjusted net income1 of $33.3 million, an increase of 31%. • Earnings per share increased to $0.56 compare
Slide 6: Net Interest Income and Margin
6 SECOND QUARTER 2021 EARNINGS PRESENTATION Net Interest Income and Margin • Net interest income1 totaled $65.9 million, a decrease of $0.8 million, or 1%, from the prior quarter and a decrease of $1.5 million, or 2%, from the second quarter of 2020. This included interest and fees earned on Paychec
Slide 7: Noninterest Income
7 SECOND QUARTER 2021 EARNINGS PRESENTATION Noninterest income decreased $2.3 million from the prior quarter to $15.3 million, and adjusted noninterest income1 decreased $2.4 million to $15.4 million sequentially. Changes include: • Interchange revenue reached a new record of $4.1 million, compared
Slide 8: Continued Focus on Disciplined Expense Control
8 SECOND QUARTER 2021 EARNINGS PRESENTATION Continued Focus on Disciplined Expense Control Noninterest expense decreased $0.3 million and adjusted noninterest expense1 decreased $0.5 million sequentially. Changes quarter-over-quarter on an adjusted basis include: • Within salaries and benefits expen
Slide 9: Efficiency Ratio Trend
9 SECOND QUARTER 2021 EARNINGS PRESENTATION • The efficiency ratio was 54.9% for the second quarter of 2021 compared to 53.2% in the prior quarter and 50.1% in the second quarter of 2020. • The adjusted efficiency ratio1 was 53.5% for the second quarter of 2021 compared to 52.0% in the prior quarter
Slide 10: Disciplined Approach to Lending in an Expanding Florida Economy
10 SECOND QUARTER 2021 EARNINGS PRESENTATION Disciplined Approach to Lending in an Expanding Florida Economy $5,772 $5,858 $5,735 $5,661 $5,437 $5,196 $5,219 $5,168 $5,079 $5,073 $576 $639 $567 $582 $364 4.56% 4.11% 4.42% 4.39% 4.33% 4.31% 4.22% 4.23% 4.15% 4.13% Yield Excluding PPP and Accretion on
Slide 11: Paycheck Protection Program Loans
11 SECOND QUARTER 2021 EARNINGS PRESENTATION Paycheck Protection Program Loans ($ in m ill io ns ) $576 $256 $(457) $375 December 31, 2020 Originations Forgiveness June 30, 2021 PPP Fee Revenue Summary ($ in thousands) Fees earned from SBA to date (net of related costs) to originate PPP loans $ 27,6
Slide 12: Seacoast's Lending Strategy Has Produced a Diverse Loan Portfolio
12 SECOND QUARTER 2021 EARNINGS PRESENTATION Commercial Real Estate $1,412,439 26% Residential Real Estate $1,226,536 23% • Construction and land development and commercial real estate loans, as defined in regulatory guidance, represent 22% and 150%, respectively, of total consolidated risk based ca
Slide 13: Unrealized Gain (Loss) in Securities
13 SECOND QUARTER 2021 EARNINGS PRESENTATION Unrealized Gain (Loss) in Securities as of June 30, 2021 (in thousands) Amortized Cost Unrealized Gains Unrealized Losses Fair Value Available for Sale Government backed $ 7,412 $ 439 $ (2) $ 7,849 Agency mortgage backed 987,402 14,224 (5,906) 995,720 Pri
Slide 14: Strong Deposit Franchise Supported by Attractive Markets
14 SECOND QUARTER 2021 EARNINGS PRESENTATION Strong Deposit Franchise Supported by Attractive Markets • Total deposits increased $450 million quarter- over-quarter and increased $1.2 billion, or 18%, compared to the second quarter of 2020. Second quarter balances include a decrease of $86 million in
Slide 15: Cost of Deposits Continues to Decline, Deposits Per Branch Grow
15 SECOND QUARTER 2021 EARNINGS PRESENTATION Cost of Deposits Continues to Decline, While Deposits Per Branch Continues to Grow • Seacoast's continued focus on organic growth and relationship-based funding, in combination with its innovative analytics platform, supports a well- diversified, low-cost
Slide 16: A Continued Focus on Building Wealth Management
16 SECOND QUARTER 2021 EARNINGS PRESENTATION A Continued Focus on Building Wealth Management $653 $870 $1,025 $1,158 4Q'19 4Q'20 1Q'21 2Q'21 Assets Under Management ($ in millions) • Assets under management increased to $1.2 billion at June 30, 2021, an increase of 13% from March 31, 2021, and 64% f
Slide 17: Allowance for Credit Losses and Purchase Discount
17 SECOND QUARTER 2021 EARNINGS PRESENTATION Allowance for Credit Losses and Purchase Discount ($ in thousands) Loans Outstanding Allowance for Credit Losses % of Category Purchase Discount % of Category Acquisition, Development & Construction $ 234,347 $ 4,053 1.73 % $ 179 0.08 % Owner Occupied Com
Slide 18: Continued Strong Asset Quality Trends
18 SECOND QUARTER 2021 EARNINGS PRESENTATION Continued Strong Asset Quality Trends Net Charge-Offs $1,751 $1,736 $3,127 $370 $6550.12% 0.12% 0.21% 0.03% 0.05% NCO NCO/Total Loans 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 Nonperforming Loans $30,051 $36,897 $36,110 $35,328 $32,920 0.52% 0.63% 0.63% 0.62% 0.61% N
Slide 19: Strong Capital Supporting a Fortress Balance Sheet
19 SECOND QUARTER 2021 EARNINGS PRESENTATION Strong Capital Supporting a Fortress Balance Sheet $15.11 $15.57 $16.16 $16.62 $17.08 $19.45 $19.91 $20.46 $20.89 $21.33 Tangible Book Value Per Share Book Value Per Share 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 10.2% 10.7% 11.0% 10.7% 10.4% 2Q'20 3Q'20 4Q'20 1Q'21
Slide 20: Steady Increase in Shareholder Value
20 SECOND QUARTER 2021 EARNINGS PRESENTATION Steady Increase in Shareholder Value $10.41 $10.55 $10.95 $11.15 $11.39 $11.67 $12.01 $12.33 $12.98 $13.65 $14.30 $14.76 $14.42 $15.11 $15.57 $16.16 $16.62 $17.08 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
Slide 21: Contact Details
21 SECOND QUARTER 2021 EARNINGS PRESENTATION Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF
Slide 22: Appendix
22 SECOND QUARTER 2021 EARNINGS PRESENTATION Appendix
Slide 23: Quarterly Trend
23 SECOND QUARTER 2021 EARNINGS PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Commercial pipeline at period end $ 322,014 $ 240,871 $ 166,735 $ 256,191 $ 117,042 322,014 117,042 Commercial loan originations 193,028 204,253 277,389 88,2
Slide 24: Legacy Bank of Florida Acquisition Expected to Close August 6, 2021
24 SECOND QUARTER 2021 EARNINGS PRESENTATION Legacy Bank of Florida Acquisition Expected to Close August 6, 2021 High-Quality Expansion in Attractive Market • In-market acquisition of a high-quality franchise with a high-yielding loan portfolio in attractive Palm Beach and Broward counties • Leverag
Slide 25: Seacoast's Integrated Delivery Model Supports Our Growth Strategy
25 SECOND QUARTER 2021 EARNINGS PRESENTATION Seacoast’s Integrated Delivery Model Supports Our Growth Strategy 59% % of consumer deposits completed outside of the branch 10% % increase in consumer online users $530MM PPP loan forgiveness to date supported by fully digital platform 28K Number of outr
Slide 26: Explanation of Certain Unaudited Non-GAAP Financial Measures
26 SECOND QUARTER 2021 EARNINGS PRESENTATION Explanation of Certain Unaudited Non-GAAP Financial Measures This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP
Slide 27: GAAP to Non-GAAP Reconciliation
27 SECOND QUARTER 2021 EARNINGS PRESENTATION GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Net Income $ 31,410 $ 33,719 $ 29,347 $ 22,628 $ 25,080 $ 65,129 $ 25,789 Total noninterest income 15,3
Slide 28: GAAP to Non-GAAP Reconciliation
28 SECOND QUARTER 2021 EARNINGS PRESENTATION GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Adjusted Noninterest Expense $ 43,400 $ 43,879 $ 41,906 $ 45,432 $ 40,676 $ 87,279 $ 82,158 Foreclosed
Slide 29: GAAP to Non-GAAP Reconciliation
29 SECOND QUARTER 2021 EARNINGS PRESENTATION GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Return on Average Tangible Assets (ROTA) 1.48 1.70 1.49 1.20 1.37 1.58 0.78 Impact of other adjustments
Slide 30: Quarterly Trend
30 SECOND QUARTER 2021 EARNINGS PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'21 1Q'21 4Q'20 3Q'20 2Q'20 2Q'21 2Q'20 Net Interest income1 $ 65,933 $ 66,741 $ 68,903 $ 63,621 $ 67,388 $ 132,674 $ 130,679 Accretion on acquired loans (2,886) (2,868) (4,44
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