Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Investor Presentation (May 2016)
50 slides from Seacoast Banking Corporation Of Florida's investor presentation, May 12, 2016
Slide 1: Investor Presentation May 2016
Investor Presentation May 2016 Contact : (email) Steve.Fowle@SeacoastBank.com (phone) 772.463.8977 (web) www.Sea coa stBanking.com
Slide 2: Forward-looking statements
This presentation contains “forward - looking statements” within the meaning 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 about future financial and operating results, ability to realized deferred ta
Slide 3: Agenda
Agenda • About Seacoast Bank • Seacoast’s Investment Thesis – Successfully Executing a Differentiated Strategy for Balanced Growth • 2016 Outlook • Company Performance • Appendix Investor Presentation 3
Slide 4: About Seacoast Bank
Agenda • $4.0B assets bank operating in the nation’s third most - populous state • Strong and growing presence in two of Florida’s most attractive DMAs • Top - ranked community bank in Orlando • Investing in digital transformation, innovative business banking delivery • Growth - oriented culture, en
Slide 5: Investment Thesis: Differentiated Strategy for Balanced Growth
Agenda Investment Thesis Successfully Executing a Differentiated Strategy for Balanced Growth 5 Investor Presentation x Reaping benefits of strategic investments in organic growth and digital transformation x Track record of completing value - creating acquisitions in growing markets x Robust risk m
Slide 6: 2015 Results Demonstrate Effectiveness of Balanced Growth Strategy
2015 Results Demonstrate the Effectiveness of Seacoast’s Balanced Growth Strategy 6 Investor Presentation Organic growth, coupled with strategic M&A, continue to drive financial performance Fully Diluted EPS – Adjusted 1 ROTCE – Adjusted 1 $0.47 $0.75 2014 2015 5.2% 8.3% 2014 2015 Improved 310 bps $
Slide 7: Our Business Transformation Timeline
Our Business Transformation Timeline 7 Investor Presentation 2011 to 2013 • Enhanced portfolio growth guardrails • Developed Accelerate business banking platform • Re - focused retail organization on sales growth • Invested in transformation to drive self service, cross sell and non - branch sales.
Slide 8: Industry commentary on digital banking opportunity
“Our analysis suggests that winners may realize a profit upside of 40 percent or more ” “Banks that can match the agility and innovation potential of other industries can reap pre - tax ROE levels of 18% to 25%. ” “ I can imagine us about five, ten years from now talking about efficiency ratios in t
Slide 9: Agenda
Agenda • About Seacoast Bank • Seacoast’s Investment Thesis – Successfully Executing a Differentiated Strategy for Balanced Growth • 2016 Outlook • Company Performance • Appendix Investor Presentation 9
Slide 10: Investment Thesis: Organic Growth and Digital Transformation
Agenda Investment Thesis Successfully Executing a Differentiated Strategy for Balanced Growth 10 Investor Presentation x Reaping benefits of strategic investments in organic growth and digital transformation • Leader in organic customer acquisition, cross selling and shifting routine transactions ou
Slide 11: Growing Customer Base Organically and via Acquisitions
Seacoast Is Growing Its Customer Base Both Organically And Via Strategic Acquisitions 11 Investor Presentation 50 55 60 65 70 75 80 85 90 95 100 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 Total Including Acquisitions Total Excluding Acquisitions
Slide 12: Monetizing Customer Base Via Cross Selling
Seacoast Is Monetizing Its Customer Base Via Effective Cross Selling… 12 Investor Presentation Cross Sell of Loans Up 137% Since YE ‘13 Cross Sell of Deposit Accounts Up 54% Since YE ‘13 878 1,253 2,085 - 500 1,000 1,500 2,000 2,500 3,000 2013 2014 2015 8,677 10,265 13,321 6,000 8,000 10,000 12,000
Slide 13: Customers Increasingly Choose Non-Branch Channels
…And Seacoast Customers Increasingly Choose Non - Branch * Channels To Conduct Business 13 Investor Presentation *Non - branch channels include Seacoast’s 24x7 call center based in Florida, website, online banking, and mobile banking Investments in digital and call center paying off for shareholders
Slide 14: Non-Branch Servicing Is Key to Transformation Strategy
50,000 80,000 110,000 140,000 170,000 200,000 230,000 260,000 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Teller Transactions Non-Teller Transactions Teller Forecast Non Teller Forecast Non - Branch Servicing Is A Key Component of O
Slide 15: Growing While Rationalizing Branches
As The Result, Seacoast Is Growing While Rationalizing Branches. Expected Deposits Per Branch of $ 85mm by Year End 2016 As Seacoast continues to create shareholder value via operating leverage in its branch network, customer satisfaction and employee engagement scores remain strong (see appendix) S
Slide 16: Business Banking Driving Significant Loan Growth
□ Focused on businesses with revenues $5mm+ in specific industry verticals □ Six offices in key metro areas of Florida (three in South Florida, three in Orlando) □ Comprehensive relationship approach: business, treasury, lending, wealth Seacoast’s Focus On Business B anking Is Driving Significant Gr
Slide 17: Investment Thesis: Value-Creating Acquisitions
Agenda Investment Thesis Successfully Executing a Differentiated Strategy for Balanced Growth 17 Investor Presentation x Reaping benefits of strategic investments in organic growth and transformation x Track record of completing value - creating acquisitions • Opportunistic deals that expand our foo
Slide 18: Proven Ability to Grow Acquired Banks
Agenda BankFIRST Acquisition H ighlights – 1 year since conversion • IRR exceeded internal target of 19% • HH growth in acquired branches = +9% • Cross sell growth (sales to existing customers) • Avg Services = +12% • Consumer Installment Loans = +22% • Consumer Lines of Credit = +11% • Debit Cards
Slide 19: Recent Acquisitions Make Seacoast a Top 10 Orlando Bank
Floridian Financial Group • 10 Branch Franchise in Daytona and Orlando, along attractive I - 4 Corridor • Compelling Financial Metrics Announced: - Approximately 20% IRR - Tangible book value dilution earn back of 4.2 years - EPS accretion of $$0.02 in 2016, $0.07 - $0.09 in 2017 • Acquisition close
Slide 20: Investment Thesis: Robust Risk Management
Agenda Investment Thesis Successfully Executing a Differentiated Strategy for Balanced Growth 20 Investor Presentation x Reaping benefits of strategic investments in organic growth and transformation x Track record of completing value - creating acquisitions x Robust risk management and controls yie
Slide 21: Conservative Risk Profile for Sustainable Value Creation
Seacoast Conservative Risk Profile Well Positioned for Sustainable Value Creation… 21 Investor Presentation 43% 79% From $1.21B To $2.17B Average Loan Size - Commercial Total Loan Portfolio Percentage Change Change in Dollars Loan Growth FY ‘11 – ‘15 From $567K To $ 324K Top 10 loan relationships re
Slide 22: Approach to CRE Differs from Florida Peers
…and Our A pproach to CRE is Very D ifferent T han Florida P eers 22 Investor Presentation CRE loans as a percent of total capital remain flat and intentionally below Florida peers . (172% vs 268% peer median) 173% 209% 172% 268% 100% 150% 200% 250% 300% 350% SBCF Florida Peers 2014 2015 CRE loans a
Slide 23: Investment Thesis: Management and Board
Agenda Investment Thesis Successfully Executing a Differentiated Strategy for Balanced Growth 23 Investor Presentation x Reaping benefits of strategic investments in organic growth and transformation x Track record of completing value - creating acquisitions x Robust risk management and controls yie
Slide 24: Board With Distinct Competencies in Strategic Areas
Seacoast’s Board Is Comprised of Experts With Distinct Competencies In Strategic Areas… 24 Investor Presentation 2011 to 2013 • Added lead board director (Retail Banking competency) • Added two additional directors (Risk and Governance competencies) • Added one director (Technology and Consulting co
Slide 25: Methodically Added Strong Management Talent
…And Seacoast Has Methodically Added Strong Management Talent In Key Areas 25 Investor Presentation 2011 to 2013 • Added executive leadership in business banking, credit and risk • Added executive leadership in digital and marketing • Added executive leadership in human resources from Bank of Americ
Slide 26: Investment Thesis: Strong Florida Economy
Agenda Investment Thesis Successfully Executing a Differentiated Model in Community Banking 26 Investor Presentation x Reaping benefits of strategic investments in organic growth and transformation x Track record of completing value - creating acquisitions x Robust risk management and controls yield
Slide 27: Florida Continues to Grow Rapidly
Agenda Florida, The Nation’s Third Largest State, Continues To Grow Rapidly Population growth is a fundamental driver of the state economy 27 Investor Presentation • Surpassed New York to become the third largest state in 2014 • One of only three states with a population over 20 million (Texas, Cali
Slide 28: Agenda
Agenda • About Seacoast Bank • Seacoast’s Investment Thesis – Successfully Executing a Differentiated Strategy for Balanced Growth • 2016 Outlook • Company Performance • Appendix Investor Presentation 28
Slide 29: Outlook for 2016: Maintain Pace of Change
Outlook for 2016: Maintain Pace of Change • Continue organic growth investments in digital transformation and customer marketing initiatives • Complete prudent, accretive acquisitions that strengthen our franchise and leverage our capabilities • Achieve 2016 adjusted earnings target of $1.00 per sha
Slide 30: Agenda
Agenda • About Seacoast Bank • Seacoast’s Investment Thesis – Successfully Executing a Differentiated Strategy for Balanced Growth • 2016 Outlook • Company Performance • Appendix Investor Presentation 30
Slide 31: Earnings History
Earnings History 31 (1) Non - GAAP measure, excludes merger related charges, branch closure expenses, and other adjustments (See Appendix for reconciliati on to GAAP) • Net Income of $3.2 million, compared to $5.9 million in Q1 2015 • Adjusted net income (1 ) of $6.8 million was up $605 thousand or
Slide 32: Loan Growth Momentum Continues
Loan Growth Momentum Continues 32 $1,854 $1,937 $2,099 $2,156 $2,455 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400 $2,600 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Total Loans Outstanding (in millions) Total loans were $ 2.46 billion at March 31, 2016, up $601 million or 32% from the prior year. Exclu
Slide 33: Deposit Balances Extend Growth Trends
Deposit Balances Extend Growth Trends 33 Total deposits increased 23% to $3.22 billion from one year ago. Transaction accounts represent 56% of total deposits. $1,428 $1,408 $1,488 $1,589 $1,805 $870 $904 $947 $961 $1,055 $312 $293 $307 $294 $362 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Q1-
Slide 34: Net Interest Income and Margin
Net Interest Income and Margin 34 $25,834 $25,788 $29,130 $29,216 $30,349 3.62 % (1) 3.50% 3.75 % 3.67% 3.68% 3.00% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Net Interest Income and Net Interest Margin* ($ in thousands
Slide 35: Non Interest Income
Non Interest Income 35 $2,002 $2,115 $2,217 $2,229 $2,129 $1,737 $2,033 $1,925 $1,989 $2,217 $1,242 $1,335 $1,385 $1,302 $1,437 $1,088 $1,032 $1,177 $955 $999 $909 $1,272 $1,012 $911 $1,007 $334 $366 $396 $377 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Q1-15 Q2-15 Q3-1
Slide 36: Non Interest Expense
Non Interest Expense 36 $11,192 $11,814 $13,236 $13,124 $14,526 $2,184 $2,235 $2,279 $2,457 $2,488 $3,251 $3,272 $3,604 $3,678 $3,746 $6,048 $6,376 $6,645 $6,706 $6,507 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Other Occupancy / Telephone Data Processing Cost Sa
Slide 37: Contact Details
Contact Details : Seacoast Banking Corporation of Florida [ NASDAQ: SBCF] 37 Investor Presentation Steve Fowle, CFO (email) Steve.Fowle@SeacoastBank.com (phone) 772.463.8977 Investor Relations www.SeacoastBanking.com
Slide 38: Agenda
Agenda • About Seacoast Bank • Seacoast’s Investment Thesis – Successfully Executing a Differentiated Strategy for Balanced Growth • 2016 Outlook • Company Performance • Appendix Investor Presentation 38
Slide 39: Geography Remains Healthy and Attractive
Agenda Geography Remains Healthy and Attractive Florida accounted for 9.4% of job growth nationally in February with just 6.3% of the population, outperforming the rest of the country by 49 % . (ADP, February 2016) "Our Florida Economic Activity Index increased again in October, for the 19th consecu
Slide 40: Engaged Employee Base is a Tremendous Asset
Agenda Engaged Employee Base is a Tremendous Asset Associates voted us a “2015 Best Places To Work in Central Florida ” ( Orlando Business Journal ) 80% of our associates are extremely satisfied to work for this company, vs 72% globally (IBM research) 86% of our associates are proud to work for this
Slide 41: Customer Focus Makes Us Special
Agenda Customer Focus Makes Us Special We have 90 years experience in serving customers 78% of our customers who rate our service as excellent have recommended us to a friend (NPS Research) 70% of our customers rate our service as excellent (NPS Research) A customer who is fully engaged represents a
Slide 42: Executing a Differentiated Business Model
Seacoast Is Executing a Differentiated Business Model 42 Drive adoption of lower cost servicing channels – mobile, ATM, online Drive organic growth via cross sell, especially outside of branch – digital, call center Rationalize the branch network given digital adoption, streamline support operations
Slide 43: Digital Technology Has Leveled the Playing Field
Digital Technology Has Leveled The Playing Field Digital Defined • Customer Servicing Capabilities to Lower Servicing Costs – E.G. Mobile banking, mobile check deposit, online banking, online applications/forms – Table stakes as “convenience” has been fundamentally redefined – Implication - Customer
Slide 44: Our Cross Sell Approach Is Unique Among Community Banks
Our Cross Sell Approach Is Unique Among Community Banks… Unlike other community banks, Seacoast uses its vast data set to drive cross sell programs Automated Cross Sell Offers Inbound Call Outbound Call In Branch Email ATMs Online Banking Direct Mail Mobile Banking* Our technology enables us to se
Slide 45: Using Data to Drive Targeted Cross Selling
…And Seacoast Uses Its Data To Drive Targeted Cross Selling HELOC Usage Campaign – Delivered To Eligible Customers Across Multiple Touchpoints Email ATM Message Online Banking Outbound Sales Call Investor Presentation 45 Software helps us identify customers who have a Heloc but are not using. Market
Slide 46: Mobile Adoption Outpaces Community and Bigger Banks
Seacoast’s Mobile Adoption Outpaces Both Community Banks and Bigger Banks 46 Investor Presentation *FIS Research – Seacoast vs FIS Banks By Asset Size – Consumer Mobile Banking 38% 39% 42% 44% 42% 44% 46% 48% 57% 59% 61% 67% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q1 2015 Q2 2015 Q3 2015 Q4 2015 <$5B $20
Slide 47: Unit Cost Comparison: Branch vs Non-Branch Channels
Unit Cost Comparison – Branch vs Non Branch Channels 47 Investor Presentation Unit Cost Branch or Offline Equivalent Unit Cost – Variable Only Savings Per Transaction ATM Deposit/Withdrawal $0.14 $2.36 $2.22 Mobile Deposit $0.48 $2.36 $1.88 Scanner Deposit $0.30 $2.36 $2.06 Paperless Statements $0.0
Slide 48: Explanation of Certain Unaudited Non-GAAP Financial Measures
Explanation of Certain Unaudited Non - GAAP Financial M easures 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
Slide 49: Net Income - GAAP to Non-GAAP Reconciliation
Net Income - GAAP to Non - GAAP Reconciliation (Q1 15 – Q1 16) Presented below is net income excluding adjustments for merger related charges, branch closure charges, and other non core expenses. The Company believes that these results of operations are a more meaningful depiction of the underlying
Slide 50: Net Income - GAAP to Non-GAAP Reconciliation: Noninterest Expense
Net Income - GAAP to Non - GAAP Reconciliation (Q1 15 – Q1 16) Presented below is net income excluding adjustments for merger related charges, branch closure charges, and other non core expenses. The Company believes that these results of operations are a more meaningful depiction of the underlying
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