Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation 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
Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities increased cybersecurity risks, including as a result of employees working remotely; inability of Seacoast’s risk manag
Slide 3: Valuable Florida Franchise, Well Positioned for Growth
Valuable Florida Franchise, Well Positioned for Growth with Strong Capital, Liquidity and Disciplined Credit Culture Seacoast Customer Map • $9.3 billion in assets as of June 30, • Highly disciplined credit portfolio 2021, operating in the nation’s third-most populous state • Strong liquidity positi
Slide 4: Florida's Economic Growth Continues to Accelerate
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 and 2020. Double the rate of overall U.S. popu
Slide 5: Second Quarter 2021 Highlights
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 compared to $0.47. Adjusted earnings per share1 inc
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin $67,388 $68,903 $66,741 $65,933 ($ in thousands) $63,621 3.70% 3.59% 3.42% 3.51% 3.23% 3.46% 3.40% 3.37% 3.25% 3.03% 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans • Net interest income1 totaled
Slide 7: Continued Strength in Noninterest Income
Continued Strength in Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $17,671 $17,785 $859 $859 $15,006 $15,322 $15,377 $887 $3,819 $872 $13,776 $3,933 $872 $287 $2,371 $887 $2,427 BOLI $3,534 $232 $287 2 BOLI $2,304 $232 Other Income $181 $4,225
Slide 8: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $46,120 $45,784 $42,399 $43,879 $43,400 $5,658 $5,481 $40,676 $5,643 $5,441 $5,448 Other Expense 2 $2,582 $2,182 2 $5,518 Legal & Professional Other Expense $1,997 $1,67
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 First Green Palm Beach Bank Freedom Community Bank Bank and North Star Bank First Bank of the Acquisitions 66% Palm Beaches Palm Beach Community and North Star Bank Acquisition 62% 60% 58% 57% 57% 56% 57% 56% 55% 54% 55% 53% 53% 54% 53%
Slide 10: Disciplined Approach to Lending in an Expanding Florida Economy
Disciplined Approach to Lending in an Expanding Florida Economy Total Loans Outstanding ($ in millions) • Loans outstanding, excluding PPP, declined only $6 million quarter-over-quarter, in line with our $5,858 $5,772 $5,735 $5,661 expectation of near-flat growth for the second quarter of $5,437 $57
Slide 11: Paycheck Protection Program Loans
Paycheck Protection Program Loans PPP Loans Rollforward PPP Fee Revenue Summary ($ in thousands) $256 $(457) Fees earned from SBA to date (net of related 2,782 loans $ 27,633 costs) to originate PPP loans ($ in millions) $576 3,781 loans Fees recognized in 2020 (7,774) $375 Fees recognized to date i
Slide 12: Diverse Loan Portfolio
Seacoast's Lending Strategy has Produced and Sustains a Diverse Loan Portfolio At June 30, 2021 ($ in thousands) Paycheck Acquisition, Protection Development Program & Construction $364,112 $234,347 Consumer 7% 4% Owner Occupied $171,769 Commercial Real 3% Estate • Construction and land development
Slide 13: Investment Securities Performance and Composition
Investment Securities Performance and Composition Unrealized Gain (Loss) in Securities as of June 30, 2021 Amortized Unrealized Unrealized $1,323 (in thousands) Cost Gains Losses Fair Value $1,051 Available for Sale Government backed $ 7,412 $ 439 $ (2) $ 7,849 ($ in millions) Agency mortgage backed
Slide 14: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $7,836 $7,386 $502 $6,915 $6,933 $613 $6,667 • Total deposits increased $450 million quarter- $831 $1,017 over-quarter and increased $1.2 billion, or 18%, $1,179 $2,618 compared to the second quarter of 202
Slide 15: Cost of Deposits Continues to Decline
Cost of Deposits Continues to Decline, While Deposits Per Branch Continues to Grow Trended Cost of Deposits and Deposits per Branch Cost of Deposits Fed Funds Average deposits per branch $163 • Seacoast's continued focus on organic growth and 2.50% $154 relationship-based funding, in combination wit
Slide 16: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) • Assets under management increased to $1.2 $1,158 billion at June 30, 2021, an increase of 13% from March 31, 2021, and 64% from June 30, 2020. R This is a result of the wealth management team’s AG 40%C $1,025 c
Slide 17: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for ($ in thousands) Outstanding Credit Losses % of Category Purchase Discount % of Category Acquisition, Development & Construction $ 234,347 $ 4,053 1.73 % $ 179 0.08 % Owner Occupied Commercial Real Estate 1,127,640 8,676 0.77 4,96
Slide 18: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO/Total Loans NPL NPL/Total Loans $3,127 $36,897 $36,110 $35,328 $32,920 $30,051 $1,751 $1,736 0.21% 0.52% 0.63% 0.63% 0.62% 0.61% 0.12% 0.12% $655 $370 0.03% 0.05% 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 2Q'20 3Q
Slide 19: Strong Capital Supporting a Fortress Balance Sheet
Strong Capital Supporting a Fortress Balance Sheet Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share $20.89 $21.33 $19.91 $20.46 11.0% $19.45 10.7% 10.7% 10.4% 10.2% $16.62 $17.08 $15.57 $16.16 $15.11 2Q'20 3Q'20
Slide 20: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $17.08 $16.62 $16.16 $15.57 $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 $11.39 $10.95 $11.15 $10.41 $10.55 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'20 1Q'21 2Q'21 • Compounded annual growth ra
Slide 21: Contact Details: Seacoast Banking Corporation of Florida
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 2021 EARNINGS PRESENTATION 21
Slide 22: Appendix
Appendix SECOND QUARTER 2021 EARNINGS PRESENTATION 22
Slide 23: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend 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 88,245 106,857
Slide 24: Legacy Bank of Florida Acquisition Expected to Close August 6, 2021
Legacy Bank of Florida Acquisition Expected to Close August 6, 2021 High-Quality • In-market acquisition of a high-quality franchise with a high-yielding loan portfolio in attractive Expansion in Palm Beach and Broward counties Attractive Market • Leverages Seacoast’s proven integration capabilities
Slide 25: Integrated Delivery Model Supports Our Growth Strategy
Seacoast’s Integrated Delivery Model Supports Our Growth Strategy Strong momentum in usage of digital tools and other non-branch delivery channels, and tools to equip our teams to outperform % of consumer deposits % of business deposits 59% completed outside of the 46% completed outside of the branc
Slide 26: 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 methods other than Generally Accepted Accounting Principles trends and facilitate comparisons with the performance o
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'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 15,322 17,671 14,930 16,946 15,006 32,993 29,694
Slide 28: GAAP to Non-GAAP Reconciliation
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 property expense and net gain/(loss) on sale
Slide 29: GAAP to Non-GAAP Reconciliation
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 for Adjusted Net Income 0.04 0.05 0.01 0.18
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'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) (4,448) (3,254) (2
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