Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q2 2024 Earnings Presentation
27 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jul 26, 2024
Slide 1: Earnings Presentation Second Quarter 2024
EARNINGS PRESENTATION SECOND QUARTER 2024 2024
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act the impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as wel
Slide 3: Valuable Florida Franchise with Strong Capital and Liquidity
Valuable Florida Franchise with Strong Capital and Liquidity • $15.0 billion in assets as of June 30, 2024, • Market Cap: $2.0 billion as of June operating in the nation’s fastest growing 30, 2024 and third most populated state • Strong capital position, supporting • Strong presence in Florida’s mos
Slide 4: Second Quarter 2024 Highlights
Second Quarter 2024 Highlights Comparisons are to the first quarter of 2024 unless otherwise stated • Net income of $30.2 million, or $0.36 per diluted share. • Four consecutive quarters of lower adjusted noninterest expense1, demonstrating the Company’s focus on driving efficiency while making inve
Slide 5: Net Interest Income
Net Interest Income Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans $127,153 $119,505 $111,035 ($ in thousands) $105,298 $104,657 3.86% 3.57% 3.36% 3.24% 3.18% 3.42% 3.13% 3.02% 2.91% 2.87% 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 • Net interest income1 totaled $104.7 million
Slide 6: Noninterest Income
Noninterest Income (In Thousands) Noninterest income increased $1.7 million from the prior quarter to $22.2 million, and adjusted noninterest income1 increased $2.0 million to $22.2 Durbin Amendment becomes effective for million. Changes from the prior quarter include: Seacoast $229 $22,228 Service
Slide 7: Continued Focus on Building Wealth Management
Continued Focus on Building Wealth Management Assets Under Management End-of-Period ($ in millions) Assets under management totaled $1.9 billion at June $1,914 30, 2024, increasing 12% year to date from December $1,711 31, 2023. $1,387 The wealth management team is having continued $1,239 success at
Slide 8: Noninterest Expense
Noninterest Expense (In Thousands) Noninterest expense totaled $82.5 million, a decrease of $7.8 million, or 9%, from the prior quarter, and on an adjusted basis1, declined $0.7 million, or 1%. Changes compared to the prior quarter include: $16,219 Salaries and wages decreased $1.4 million, or 3%, t
Slide 9: Disciplined Approach to Lending in a Strong Florida Economy
Disciplined Approach to Lending in a Strong Florida Economy Total Loans End-of-Period ($ in millions) Loans outstanding increased by $60.5 million, or 2.4% annualized, from the prior quarter. Loan pipelines increased by 46% from the prior quarter $10,118 $10,011 $10,063 $9,978 $10,039 to $834.4 mill
Slide 10: Loan Portfolio Mix
Loan Portfolio Mix At June 30, 2024 Construction & Land Development and CRE Loans to Total Risk Based Capital Consumer, 2.3% CRE-Retail, 11.3% 252% Peers 59% CRE-Office, 5.3% 222% SBCF Residential, 34% 25.5% CRE-Multifamily 5+, 4.1% CRE Construction & Land Development Peer Source: 1Q’24 S&P Capital
Slide 11: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for Credit % of Loans % of Loans ($ in thousands) Outstanding Losses Outstanding Purchase Discount Outstanding Construction and Land Development $ 593,534 $ 5,493 0.93 % $ 3,609 0.61 % Owner Occupied Commercial Real Estate 1,656,391 1
Slide 12: Historical Asset Quality Trends
Historical Asset Quality Trends Net Charge-Offs Nonperforming Loans and Past Dues NCO/Average Loans NPL/Total Loans Accruing Past Due / Total Loans 0.27% 0.65% 0.63% 0.60% 0.22% 0.52% 0.13% 0.40% 0.39% 0.30% 0.05% 0.18% 0.01% 0.10% 0.35% 2020 2021 2022 2023 2024 (YTD Annualized) 2020 2021 2022 2023
Slide 13: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Nonperforming Loans and Past Dues Net Charge-Offs NCO NCO/Average Loans NPL NPL/Total Loans Accruing Past Due / Total Loans $77,205 $12,748 $65,104 $59,927 0.50% $9,946 $48,326 0.77% $41,508 0.65% 0.40% 0.60% $4,720 0.48% 0.41% $3,630 $705 0.19%
Slide 14: Investment Securities Performance and Composition
Investment Securities Performance and Composition Portfolio yield increased 22 basis points to 3.69% from 3.47% in the $1,916 $1,949 $1,967 prior quarter due to favorable yields on bonds purchased. $1,842 $1,836 AFS securities ended the quarter with a net unrealized loss of $224.7 million compared t
Slide 15: Distinctive Deposit Franchise Supported by Attractive Markets
Distinctive Deposit Franchise Supported by Attractive Markets Deposits End-of-Period ($ in millions) Total deposits increased $100.3 million, or 3% annualized, ending the quarter at $12.1 billion. $12,283 $12,108 $12,016 $12,116 $11,777 Continued focus on organic growth and relationship-based fundin
Slide 16: Granular, Diverse and Relationship-Focused Customer Funding Base
Granular, Diverse and Relationship-Focused Customer Funding Base Deposits End-of-Period ($ in millions) $12,283 $12,108 $12,016 $12,116 $11,777 8% 10% The Company benefits from a granular deposit franchise, with 11% 13% 12% the top ten depositors representing approximately 4% of total 5% 3% 1% 1% 3%
Slide 17: Robust Capital Position Supporting a Fortress Balance Sheet
Robust Capital Position Supporting a Fortress Balance Sheet Tangible Book Value Per Share Tangible Common Equity / Tangible Assets $15.41 $15.26 $15.08 9.3% 9.3% 9.3% 8.5% 8.7% $14.24 $14.26 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 2Q'23 3Q'23 4Q'23 1Q'24 2Q'24 Return on Tangible Common Equity Total Risk Based
Slide 18: Investor Relations Contacts
Tracey L. Dexter Chief Financial Officer Tracey.Dexter@SeacoastBank.com (772) 403-0461 Michael Young Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 19: Appendix
Appendix SECOND QUARTER 2024 EARNINGS PRESENTATION 19
Slide 20: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Commercial pipeline at period end $ 743,789 $ 498,617 $ 306,531 $ 259,445 $ 198,984 $ 743,789 $ 198,984 Commercial loan originations 405,957 260,032 334,229 94,021 307
Slide 21: Non-owner Occupied Commercial Real Estate
Non-owner Occupied Commercial Real Estate Balance % of 30+ Days Past- CRE Non-Owner Occupied ($ in ‘000s) Balance Total Loans Average Loan Size Accruing Non Accrual Weighted LTV Retail $ 1,132,190 11.3 % $ 2,190 $ — $ 2,273 50 % Office 535,178 5.3 1,538 — 2,916 54 Multifamily 5+ 408,909 4.1 2,076 —
Slide 22: Liquidity Sources vs Uninsured Deposits
Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,351 $944 Unpledged Securities Uninsured and uncollateralized deposits represent 29% of total deposits. $348 Lines of Credit Total Cash & Borrowing Capacity = $6.4 billion Total liquidity sou
Slide 23: 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 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Net Income $ 30,244 $ 26,006 $ 29,543 $ 31,414 $ 31,249 $ 56,250 $ 43,076 Total noninterest income 22,184 20,497 17,338 17,793 21,576 42,681 44,021
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Adjusted Income Taxes 8,920 9,569 8,874 10,012 14,344 18,490 21,248 Adjusted Net Income1 $ 30,277 $ 31,132 $ 31,363 $ 34,170 $ 43,489 $ 61,408 $ 67,
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Pre-Tax Pre-Provision Earnings $ 44,555 $ 35,674 $ 42,006 $ 43,383 $ 40,864 $ 80,228 $ 88,424 Total Adjustments to Noninterest Income 44 (229) 2,437
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'24 1Q'24 4Q'23 3Q'23 2Q'23 2Q'24 2Q'23 Adjusted Return on Average Tangible Common Equity 10.76 % 11.15 % 11.80 % 12.79 % 16.08 % 10.95 % 13.32 % Loan Interest Income1 $ 147,518 $ 147,308
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