Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q3 2020 Earnings Presentation
34 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Nov 9, 2020
Slide 1: Investor Presentation Third Quarter 2020
Investor Presentation THIRD QUARTER 2020 THIRD QUARTER 2020
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 by other financial institutions that adversely affect us or the banking industry; our concentration in commercial real Securities
Slide 3: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX THIRD QUARTER 2020 3
Slide 4: Valuable Florida Franchise, Well Positioned with Strong Capital, Liquidity and Disciplined Credit Culture
Valuable Florida Franchise, Well Positioned with Strong Capital, Liquidity and Disciplined Credit Culture Seacoast Customer Map • $8.3 billion in assets as of • Highly disciplined credit portfolio September 30, 2020, operating in the nation’s third-most populous state • Prudent liquidity position •
Slide 5: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX THIRD QUARTER 2020 5
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin • Excluding both accretion on acquired loans and the effect of PPP loans, net interest margin1 in the third quarter was 3.42% compared to 3.46% in the prior quarter. • Net interest income1 totaled $63.6 million, a decrease of $3.8 million, or 6%, from the prior quarter
Slide 7: Strong Growth and Record Results in Noninterest Income
Strong Growth and Record Results in Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) 2 3 Noninterest income increased $1.9 million sequentially to $16.9 million, and adjusted noninterest income1 increased $3.2 million to $16.9 million sequentially.
Slide 8: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) 2 2 Noninterest expense increased $9.3 million and adjusted noninterest expense1 increased $4.8 million sequentially. Results for the third quarter include $4.3 million
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 First Green Bank Palm Beach Freedom CommunityPBCB Bank and Bank and NorthNorthStar Star Bank Bank Acquisitions First Bank of the Palm Beaches Palm Beach Community and Palm Bank AcquisitionNorth Star • The efficiency ratio was 61.6% comp
Slide 10: Disciplined Approach to Lending in an Uncertain Environment
Disciplined Approach to Lending in an Uncertain Environment Total Loans Outstanding ($ in millions) • Loans outstanding totaled $5.9 billion, an increase of $872 million, or 17%, year-over-year. • New non-PPP loan originations of $338 million in the third quarter compared to $311 million in the prio
Slide 11: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) • Total deposits increased $248 million, or 4%, quarter- over-quarter and increased $1.2 billion, or 22%, compared to the third quarter of 2019. • Excluding deposits of $330 million acquired from Freedom Ba
Slide 12: Cost of Deposits
Cost of Deposits Deposit Mix and Cost of Deposits Trended Cost of Deposits 0.73% 0.61% 0.57% 0.31% 0.24% Cost of Deposits Cost of deposits declined seven basis points quarter over quarter, reflecting the significant value of the deposit franchise. We believe that Seacoast's continued focus on organi
Slide 13: Investment Securities Performance and Composition
Investment Securities Performance and Composition Portfolio yield declined 56 basis points to 2.12% from 2.68% in the prior quarter. The decline is attributed to faster prepayments, rate resets and lower yielding portfolio additions in the third quarter. The net unrealized gain increased from $31.5
Slide 14: Investment Securities Performance and Composition
Investment Securities Performance and Composition Our portfolio remains primarily backed by US government agencies. Non-guaranteed mortgage bonds are absent any hotel, shopping, or industrial exposure and is 100% comprised of housing collateral. The CLO portfolio only includes AAA and AA bonds with
Slide 15: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value • Compounded annual growth rate of 12% in tangible book value per share since 2017. • The decline in tangible book value per share during the first quarter of 2020 was primarily attributed to the Day-1 impact of the adoption of CECL. THIRD QUARTER 2020 15
Slide 16: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX THIRD QUARTER 2020 16
Slide 17: Seacoast's Lending Strategy Has Produced a Diverse, Sustainable Loan Portfolio
Seacoast’s Lending Strategy Has Produced a Diverse, Sustainable Loan Portfolio At September 30, 2020 ($ in thousands) Paycheck Acquisition, Protection Development Program & Construction • Construction and land development and commercial $638,800 $280,610 real estate loans, as defined in regulatory g
Slide 18: Deferred Loans at October 31, 2020
Deferred Loans at October 31, 2020 At October 31, 2020, approximately 350 loans totaling $190 million, or 4% of total loans excluding PPP, were on payment deferral, compared to 13% of total loans excluding PPP at September 30, 2020. % of Total Loans on Segment on ($ in thousands) Deferral Deferral •
Slide 19: OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Value Type and Industry
OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Value Type and Industry As of October 31, 2020 OOCRE & Acquisition, Commercial Real Development & On Deferred % of Category ($ in thousands) Estate Construction Total % of Total Loans Payment Status Deferred Office Building $ 736,415 $ 14
Slide 20: The Commercial & Financial Portfolio Exhibits Significant Industry Diversification
The Commercial & Financial Portfolio Exhibits Significant Industry Diversification As of October 31, 2020 Commercial & On Deferred Payment % of Category ($ in thousands) Financial % of Total Loans Status Deferred Management Companies1 $ 187,561 3% $ 301 —% Professional, Scientific, Technical & Other
Slide 21: Allowance for Credit Losses
Allowance for Credit Losses Q3 Credit Costs $ (1,245) Changes in volume and mix Provision for accrued interest 400 receivable (reserve in Other Assets) (845) Provision for credit losses Provision for unfunded commitments 756 (reserve in Other Liabilities) (89) Q3 credit costs The allowance for credi
Slide 22: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loan Allowance for ($ in thousands) Outstandings Credit Losses % of Category Purchase Discount % of Category Acquisition, Development & Construction $ 280,610 $ 7,701 2.74 % $ 788 0.28 % Owner Occupied Commercial Real Estate 1,125,460 7,219 0.64 7,11
Slide 23: Asset Quality Trends
Asset Quality Trends ($ in thousands) 3Q’20 increase includes additions of $3.0 million from the Freedom Bank acquisition and a net increase of $4.0 million in portfolio loans, including one for $3.3 million that paid off in October. Allowance for Credit Losses Criticized Loans as a % of Risk-Based
Slide 24: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX THIRD QUARTER 2020 24
Slide 25: Strong Capital
Strong Capital Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Return on Tangible Common Equity Total Risk Based and Tier 1 Capital 1 10.0%2 8.0%2 1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a re
Slide 26: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX THIRD QUARTER 2020 26
Slide 27: Seacoast's Integrated Delivery Model Has Enabled the Bank to Effectively Serve Customers Throughout the Pandemic
Seacoast’s Integrated Delivery Model Has Enabled the Bank to Effectively Serve Customers Throughout the Pandemic As a result, we've seen strong momentum in usage of digital tools and other non-branch delivery channels % of consumer deposits completed outside of the % of residential sales 59% 22% ori
Slide 28: Contact Details
Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF www.SeacoastBanking.com THIRD QUARTER 2020 28
Slide 29: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX THIRD QUARTER 2020 29
Slide 30: 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 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Net Income $ 22,628 $ 25,080 $ 709 $ 27,176 $ 25,605 $ 48,417 $ 71,563 Total noninterest income 16,946 15,006 14,688 16,376 13,943 46,640 40,356 Se
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Adjusted Noninterest Expense $ 45,432 $ 40,676 $ 41,482 $ 35,967 $ 36,911 $ 127,590 $ 116,036 Foreclosed property expense and net gain/(loss) on sa
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Return on Average Tangible Assets (ROTA) 1.20 1.37 0.11 1.66 1.61 0.93 1.53 Impact of other adjustments for Adjusted Net Income 0.18 (0.04) 0.21 (0
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Net Interest income1 $ 63,621 $ 67,388 $ 63,291 $ 61,846 $ 61,027 $ 194,300 $ 182,107 Accretion on acquired loans (3,254) (2,988) (4,287) (3,407) (
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