Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q4 2022 Earnings Presentation
28 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Feb 14, 2023
Slide 1: Investor Presentation Fourth Quarter 2022
INVESTOR PRESENTATION FOURTH QUARTER 2022 2022
Slide 2: Forward-looking statements
2FOURTH QUARTER 2022 INVESTOR PRESENTATION This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financia
Slide 3: Valuable Florida Franchise, Well-Positioned with Strong Capital
3FOURTH QUARTER 2022 INVESTOR PRESENTATION • $12.1 billion in assets as of December 31, 2022, operating in the nation’s third-most populous state • Strong presence in Florida’s most attractive markets ▪ #1 Florida-based bank in Orlando MSA ▪ #1 Florida-based bank in Palm Beach county ▪ #1 market sha
Slide 4: Florida's Continuing Economic Strength
4FOURTH QUARTER 2022 INVESTOR PRESENTATION Attracted by Florida’s favorable business climate and lower taxes, individual and business migration to Florida has surged. The significant inflow of wealth has positively impacted the state’s fiscal and economic health. Sources: US Census data; The Florida
Slide 5: Fourth Quarter 2022 Highlights
5FOURTH QUARTER 2022 INVESTOR PRESENTATION • Net interest margin expanded 69 basis points to 4.36%. Excluding the effects of accretion on acquired loans, net interest margin expanded 43 basis points to 4.01%. • Cost of deposits remains low at 21 basis points. • Pre-tax pre-provision earnings increas
Slide 6: Significant Expansion in Net Interest Margin and Net Interest Income
6FOURTH QUARTER 2022 INVESTOR PRESENTATION Significant Expansion in Net Interest Margin and Net Interest Income ($ in th ou sa nd s) $72,412 $76,639 $81,764 $88,399 $119,858 3.16% 3.25% 3.38% 3.67% 4.36% 2.91% 3.05% 3.24% 3.57% 4.01% Net Interest Income Net Interest Margin NIM, excluding PPP and acc
Slide 7: Noninterest Income
7FOURTH QUARTER 2022 INVESTOR PRESENTATION $18,330 $16,465 $17,633 $2,606 $3,504 $3,996 $4,135 $4,138 $4,650 $2,356 $2,732 $2,886$2,030 $434 $426 $5,908 $4,294 $4,149 $1,295 $1,363 $1,526 BOLI Other Income Mortgage Banking Wealth Management Interchange Income Service Charges 4Q'21 3Q'22 4Q'22 $18,70
Slide 8: Noninterest Expense
8FOURTH QUARTER 2022 INVESTOR PRESENTATION $48,309 $56,899 $70,431 $29,766 $32,488 $44,760$5,157 $5,598 $7,336 $1,015$5,546 $6,518 $8,213 $2,049 $2,003 $2,683 $5,791 $9,277 $7,439 Other Expense Legal & Professional Occupancy & Telephone Provision for Unfunded Commitments Data Processing Cost Salarie
Slide 9: Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control
9FOURTH QUARTER 2022 INVESTOR PRESENTATION Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control Pa lm B ea ch C om m un ity a nd N or th S ta r Ba nk A cq ui si tio n 48% 60% 50% 62% 48% 53% 55% 60% 54% 62% 56% 57% 63% 4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21
Slide 10: Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio
10FOURTH QUARTER 2022 INVESTOR PRESENTATION Commercial Real Estate - Owner Occupied $1,478,302 18% Construction and Land Development $587,332 7% Paycheck Protection Program $4,590 <1%Consumer $286,587 4% Commercial & Financial $1,348,636 16% Commercial Real Estate - Non-Owner Occupied $2,589,774 32%
Slide 11: Disciplined Approach to Lending in a Strong Florida Economy
11FOURTH QUARTER 2022 INVESTOR PRESENTATION $5,925 $6,451 $6,542 $6,691 $8,145 4.31% 4.30% 4.29% 4.45% 5.29% 3.94% 4.00% 4.10% 4.30% 4.80% Yield Excluding PPP and Accretion on Acquired Loans Reported Yield Total Loans 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 Total Loans End-of-Period ($ in millions) Discipline
Slide 12: Investment Securities Performance and Composition
12FOURTH QUARTER 2022 INVESTOR PRESENTATION Investment Securities Performance and Composition Unrealized Loss in Securities as of December 31, 2022 (in thousands) Amortized Cost Fair Value Net Unrealized Loss Δ from 3Q’22 Available for Sale Government backed $ 13,813 $ 13,647 $ (166) $ (160) Agency
Slide 13: Strong Deposit Franchise Supported by Attractive Markets
13FOURTH QUARTER 2022 INVESTOR PRESENTATION 64% Deposits End-of-Period ($ in millions) $8,068 $9,244 $9,189 $8,765 $9,982 $4,966 $5,776 $5,862 $5,699 $6,409 $2,547 $2,937 $2,859 $2,639 $3,050 $555 $531 $468 $427 $523 0.25% 0.50% 1.75% 3.25% 4.50% 0.06% 0.06% 0.06% 0.09% 0.21% Transaction Accounts Sa
Slide 14: Continued Focus on Building Wealth Management
14FOURTH QUARTER 2022 INVESTOR PRESENTATION $870 $1,239 $1,387 4Q'20 4Q'21 4Q'22 Assets Under Management ($ in millions) 21% CA GR A Continued Focus on Building Wealth Management Assets under management totaled $1.4 billion at December 31, 2022, increasing 12% from December 31, 2021. This is a resul
Slide 15: Allowance for Credit Losses and Purchase Discount
15FOURTH QUARTER 2022 INVESTOR PRESENTATION Allowance for Credit Losses and Purchase Discount ($ in thousands) Loans Outstanding Allowance for Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 587,332 $ 6,464 1.10 % $ 11,485 1.96 % Owner Occupied Commerc
Slide 16: Continued Strong Asset Quality Trends
16FOURTH QUARTER 2022 INVESTOR PRESENTATION Net Charge-Offs (Recoveries) $570 $79 $103 $782 0.04% 0.04% NCO NCO/Total Loans 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 ($ in thousands) Nonperforming Loans $30,598 $26,209 $26,442 $21,464 $28,843 0.52% 0.41% 0.40% 0.32% 0.35% NPL NPL/Total Loans 4Q'21 1Q'22 2Q'22 3
Slide 17: Strong Capital Position and Returns
17FOURTH QUARTER 2022 INVESTOR PRESENTATION $17.84 $17.12 $16.66 $15.98 $14.69 $22.40 $22.15 $21.65 $20.95 $22.45 Tangible Book Value Per Share Book Value Per Share 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 11.1% 9.9% 9.7% 9.8% 9.1% 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 18.2% 17.7% 17.7% 17.5% 15.8% 17.4% 16.8% 16.8% 1
Slide 18: Investor Relations
Michael Young SVP, Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 19: Appendix
19FOURTH QUARTER 2022 INVESTOR PRESENTATION Appendix
Slide 20: Low Historical Deposit Beta Coupled with Favorable Deposit Composition
20FOURTH QUARTER 2022 INVESTOR PRESENTATION Low Historical Deposit Beta Coupled with Favorable Deposit Composition 0.25% 0.29% 0.50% 0.50% 0.50% 0.55% 1.00% 1.04% 1.25% 1.30% 1.53% 1.80% 2.01% 2.28% 2.50% 2.50% 0.13% 0.12% 0.13% 0.10% 0.15% 0.14% 0.14% 0.17% 0.22% 0.29% 0.33% 0.39% 0.43% 0.54% 0.67%
Slide 21: Loan Originations and Pipelines Quarterly Trend
21FOURTH QUARTER 2022 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Commercial pipeline at period end $ 395,652 $ 530,430 $ 476,693 $ 619,547 $ 397,822 $ 395,652 $ 397,822 Commercial loan originations1 489,605 340,438 461,8
Slide 22: Apollo Bancshares Fair Value of Assets and Liabilities Acquired
22FOURTH QUARTER 2022 INVESTOR PRESENTATION Fair Value of Assets and Liabilities Acquired (In thousands) 10/7/2022 Assets: Cash and cash equivalents $ 41,001 Investment securities 203,596 Loans 666,522 Bank premises and equipment 7,809 Core deposit intangibles 28,699 Goodwill 90,237 Other assets 52,
Slide 23: Drummond Banking Company Fair Value of Assets and Liabilities Acquired
23FOURTH QUARTER 2022 INVESTOR PRESENTATION Fair Value of Assets and Liabilities Acquired (In thousands) 10/7/2022 Assets: Cash and cash equivalents $ 31,805 Investment securities 327,852 Loans 544,694 Bank premises and equipment 29,370 Core deposit intangibles and other 32,983 Goodwill 103,476 Othe
Slide 24: Explanation of Certain Unaudited Non-GAAP Financial Measures
24FOURTH QUARTER 2022 INVESTOR PRESENTATION This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, noninte
Slide 25: Non-GAAP Reconciliation Quarterly Trend
25FOURTH QUARTER 2022 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Net Income $ 23,927 $ 29,237 $ 32,755 $ 20,588 $ 36,330 $ 106,507 $ 124,403 Total noninterest income 17,651 16,103 16,964 15,373 18,7
Slide 26: Non-GAAP Reconciliation Quarterly Trend
26FOURTH QUARTER 2022 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Adjusted Noninterest Expense $ 70,431 $ 56,899 $ 51,663 $ 50,705 $ 48,309 $ 229,698 $ 182,399 Foreclosed property expense and net (lo
Slide 27: Non-GAAP Reconciliation Quarterly Trend
27FOURTH QUARTER 2022 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Return on Average Assets (ROA) 0.78 % 1.10 % 1.21 % 0.79 % 1.43 % 0.96 % 1.33 % Impact of removing average intangible assets and rela
Slide 28: Non-GAAP Reconciliation Quarterly Trend
28FOURTH QUARTER 2022 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Net Interest income1 $ 119,858 $ 88,399 $ 81,764 $ 76,639 $ 72,412 $ 366,660 $ 276,541 Accretion on acquired loans (9,710) (2,242) (2
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