Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q1 2023 Earnings Presentation
32 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Apr 28, 2023
Slide 1: Earnings Presentation First Quarter 2023
EARNINGS PRESENTATION FIRST QUARTER 2023 2023
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 on key suppliers or vendors to obtain equipment or services for the business on acceptable terms, including the imp
Slide 3: Valuable Florida Franchise with Strong Capital and Liquidity
Valuable Florida Franchise with Strong Capital and Liquidity SEACOAST BANK FOOTPRINT Jacksonville MSA • $15.3 billion in assets as of March 31, • Market Cap: $2.0 billion as of 2023, operating in the nation’s fastest March 31, 2023 growing and third most populated state • Serving over 270,000 custom
Slide 4: First Quarter 2023 Highlights
First Quarter 2023 Highlights Comparisons are to fourth quarter of 2022 unless otherwise stated • Pre-tax pre-provision earnings1 increased 1% to $46.3 • Maintained lending discipline and ended the period with million. On an adjusted basis, pre-tax pre-provision 82% loan to deposit ratio. earnings1
Slide 5: Continued Growth in Net Interest Income
Continued Growth in Net Interest Income Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans $131,351 $119,858 ($ in thousands) $88,399 $81,764 4.36% 4.31% $76,639 3.67% 3.25% 3.38% 4.01% 3.78% 3.58% 3.10% 3.26% 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 • Net interest income1 total
Slide 6: Noninterest Income
Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $22,445 $1,916 $20,221 $17,651 $17,633 $1,916 $15,373 $1,526 $7,003 $15,825 $1,526 $4,779 BOLI $1,334 $3,362 BOLI $1,334 Other Income 2 $1,101 3 $3,344 $1,101 Other Income $805 Insurance Agency Incom
Slide 7: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) $1,518 $1,387 Assets under management totaled $1.5 billion at March 31, 2023, increasing 24% from March 31, 2022. This is a result of the wealth management team’s continuing success at winning $1,239 $1,228 $1,22
Slide 8: Noninterest Expense
Noninterest Expense Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $107,475 $81,925 $9,570 $91,510 $8,459 $7,479 $7,475 $70,431 $2,687 $10,286 $1,443 $6,550 2 $9,174 $1,239 $9,001 Other Expense $1,443 Other Expense 2 $2,683 Legal & Professional $8,586 $14,553 $1,
Slide 9: Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control
Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control GAAP - Efficiency Drummond Bank Adjusted - Efficiency1 and Apollo Bank Freedom Sabal Palm Bank Professional Bank and Florida Business Bank Bank First Bank of the Legacy Bank Palm Beach Community and Palm Beaches of Florida 65% N
Slide 10: Disciplined Approach to Lending in a Strong Florida Economy
Disciplined Approach to Lending in a Strong Florida Economy Total Loans End-of-Period ($ in millions) $10,134 Loans outstanding, excluding acquisitions, increased $13 million, or 0.6% annualized. $1,976 5.86% Total loan originations were $485 million, $8,145 including $322 million in commercial orig
Slide 11: Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio At March 31, 2023 ($ in thousands) Construction & Land Development and CRE Loans to Total Risk Based Capital Paycheck Protection Program 273% $5,399 Peers Construction and 65% Consumer <1% $301,740 Land Development $757,835 236% 3% SBCF 7
Slide 12: Loan Portfolio Mix
Loan Portfolio Mix Balance At March 31, 2023 Segment ($ in thousands) % of Balance Non-Owner Occupied CRE PPP, 0.05% CRE-Retail, 9.92% Retail $ 1,005,724 9.92 % Consumer, 2.98% Office 618,377 6.10 Multifamily 5+ 475,261 4.69 CRE-Office, 6.10% Residential, 23.23% Hotel/Motel 407,388 4.02 Industrial/W
Slide 13: Non-owner Occupied Commercial Real Estate in Florida's Strongest Markets
Non-owner Occupied Commercial Real Estate in Florida’s Strongest Markets Balance Balance % of Total Non-owner Occupied Commercial Real Estate by MSA ($ in thousands) Loans 15% of total loans in vibrant, South Florida tri- Miami / Dade County $ 793,660 7.83 % county area. Orlando-Kissimmee, FL MSA 46
Slide 14: 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 $ 1,005,724 9.92 % $ 1,919 $ 924 $ — 52 % Office 618,377 6.10 1,649 — — 55 Multifamily 5+ 475,261 4.69 1,081 — 14,6
Slide 15: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for Credit ($ in thousands) Outstanding Losses % of Category Purchase Discount % of Category Construction and Land Development $ 757,835 $ 6,540 0.86 % $ 13,018 1.72 % Owner Occupied Commercial Real Estate 1,652,491 6,292 0.38 31,266
Slide 16: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Nonperforming Loans and Classified Assets Net Charge-Offs (Recoveries) NCO NCO/Average Loans NPL NPL/Total Loans Classified Assets/Total Assets $8,139 $7,591 $50,787 $36,110 $30,598 $28,843 $26,955 0.16% $3,027 $3,188 1.30% 1.25% 0.13% 0.95% 0.8
Slide 17: Investment Securities Performance and Composition
Investment Securities Performance and Composition • Portfolio yield increased eight basis points to 2.85% from 2.77% in the prior quarter. $1,861 $2,016 $1,801 $1,872 $1,707 • AFS securities ended the quarter with a net unrealized loss of $223.2 million compared to a ($ in millions) 2.77% 2.85% net
Slide 18: Growing Deposit Franchise Supported by Attractive Markets
Growing Deposit Franchise Supported by Attractive Markets Deposits End-of-Period ($ in millions) $12,310 $2,033 Continued focus on organic growth and relationship-based $9,982 funding, in combination with our innovative analytics $9,244 $9,189 platform, supports a well-diversified, low-cost deposit
Slide 19: Granular, Diverse and Relationship Focused Deposit Base
Granular, Diverse and Relationship Focused Deposit Base Deposits End-of-Period ($ in millions) $12,310 10% $9,982 23% Noninterest demand deposits represent 37% of overall deposits. $9,244 $9,189 5% The Company benefits from a granular deposit franchise, with the 6% 5% $8,765 5% top ten depositors re
Slide 20: Stable Core Deposit Base
Stable Core Deposit Base Transaction accounts represent 59% of total deposits at March 31, 2023. Relationship-focused operating accounts have been built over Seacoast’s long history. These accounts are typically very stable, which can be seen by the continued steady balances throughout the first qua
Slide 21: Liquidity Sources vs Uninsured Deposits
Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,356 $677 Unpledged Securities $300 Lines of Credit Total Cash & Borrowing Capacity = $6.4 Billion Uninsured and uncollateralized deposits represent 32% of $1,496 total deposits. Uninsured an
Slide 22: Industry Leading Capital Position Supporting a Fortress Balance Sheet
Industry Leading Capital Position 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 $24.24 $22.15 $21.65 $22.45 $20.95 9.9% 9.7% 9.8% 9.1% $17.12 $16.66 8.4% $15.98 $14.69 $14.2
Slide 23: 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 24: Appendix
Appendix FIRST QUARTER 2023 EARNINGS PRESENTATION 24
Slide 25: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend (Amounts in thousands) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Commercial pipeline at period end $ 297,380 $ 395,652 $ 530,430 $ 476,693 $ 619,547 Commercial loan originations 321,665 489,605 340,438 461,855 372,986 Residential pipeline-saleable at period end
Slide 26: Florida Population Trends
Florida Population Trends 2023 2010-2023 2023 2023-2028 2023-2028 Percent of Projected Projected HH Number of Deposits In Deposit Market National Total Population Population Population Median Household Income Change 1 MSA Market Rank Branches1 Market ($000)1 Share (%)1 Franchise (%)1 (Actual) Change
Slide 27: Professional Holding Corp. Acquisition
Professional Holding Corp. Acquisition Fair Value of Assets and Liabilities Acquired (Preliminary) Loans Acquired 1/31/2023 (In thousands) 1/31/2023 (In thousands) Fair Value Book Balance (Preliminary) Assets: Construction and land development $ 156,048 $ 151,012 Cash and cash equivalents $ 141,680
Slide 28: 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 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Net Income $ 11,827 $ 23,927 $ 29,237 $ 32,755 $ 20,588 Total noninterest income 22,445 17,651 16,103 16,964 15,373 Securities losses/(gains), net (107) (18) 362 300 452 BOLI be
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Adjusted Noninterest Expense $ 81,925 $ 70,431 $ 56,899 $ 51,663 $ 50,705 Foreclosed property expense and net loss (gain) on sale (195) 411 (9) 968 164 Provision for unfunded co
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Return on Average Assets (ROA) 0.34 % 0.78 % 1.10 % 1.21 % 0.79 % Impact of removing average intangible assets and related amortization 0.18 0.16 0.07 0.08 0.06 Return on Averag
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'23 4Q'22 3Q'22 2Q'22 1Q'22 Yield on Loans1 5.86 % 5.29 % 4.45 % 4.29 % 4.30 % Impact of accretion on acquired loans (0.69) (0.49) (0.14) (0.16) (0.24) Yield on loans excluding accretion on acquired loans
Seacoast Banking Corporation of Florida — Q1 2023 Earnings Presentation on 6ix