Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q4 2023 Earnings Presentation
39 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Feb 14, 2024
Slide 1: Investor Presentation Fourth Quarter and Full Year 2023
INVESTOR PRESENTATION FOURTH QUARTER AND FULL YEAR 2023
Slide 2: Forward-looking statements
2FOURTH QUARTER 2023 INVESTOR PRESENTATION This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, stateme
Slide 3: Agenda
01 ABOUT SEACOAST BANK 02 OUTLOOK 03 COMPANY PERFORMANCE 04 APPENDIX
Slide 4: About Seacoast Bank
AGENDA ABOUT SEACOAST BANK
Slide 5: Valuable Florida Franchise with Strong Capital and Liquidity
5FOURTH QUARTER 2023 INVESTOR PRESENTATION • $14.6 billion in assets as of December 31, 2023, operating in the nation’s fastest growing and third most populated state • Strong presence in Florida’s most attractive markets, increasing to #15 Florida market share in 2023 from #18 in 2022 • #1 Florida-
Slide 6: Proven Track Record of Successful and Value-Added Integrations
6FOURTH QUARTER 2023 INVESTOR PRESENTATION PROVEN TRACK RECORD OF SUCCESSFUL AND VALUE-ADDED INTEGRATIONS
Slide 7: Outlook
AGENDA OUTLOOK
Slide 8: Executing Our Balanced Growth Strategy
8FOURTH QUARTER 2023 INVESTOR PRESENTATION Executing Our Balanced Growth Strategy BUILD the business to become the dominant commercial bank in Florida ▪ Organic growth leveraging technology and high performance culture to attract best banking talent in Florida from larger regionals ▪ Opportunistic a
Slide 9: Company Performance
AGENDA COMPANY PERFORMANCE
Slide 10: Fourth quarter highlights
10FOURTH QUARTER 2023 INVESTOR PRESENTATION • Net income of $29.5 million, or $0.35 per diluted share; adjusted net income1 of $36.5 million, or $0.43 per diluted share. • Adjusted pre-tax pre-provision return on tangible assets1 of 1.48%, adjusted return on tangible common equity1 of 11.80%, and an
Slide 11: Net Interest Income
11FOURTH QUARTER 2023 INVESTOR PRESENTATION Net Interest Income ($ in th ou sa nd s) $119,858 $131,351 $127,153 $119,505 $111,035 4.36% 4.31% 3.86% 3.57% 3.36% 4.01% 3.78% 3.42% 3.13% 3.02% Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans 4Q'22 1Q'23 2Q'23 3Q'23 4Q'
Slide 12: Noninterest Income
12FOURTH QUARTER 2023 INVESTOR PRESENTATION Noninterest income declined $0.5 million from the prior quarter to $17.3 million, and adjusted noninterest income1 increased $1.6 million to $19.8 million. Changes include: Service charges on deposits increased $0.2 million from the prior quarter and incre
Slide 13: Continued Focus on Building Wealth Management
13FOURTH QUARTER 2023 INVESTOR PRESENTATION Assets Under Management ($ in millions) $653 $870 $1,239 $1,387 $1,711 2019 2020 2021 2022 2023 27% CAGR Continued Focus on Building Wealth Management Assets under management totaled $1.7 billion at December 31, 2023, increasing 23% from December 31, 2022.
Slide 14: Noninterest Expense
14FOURTH QUARTER 2023 INVESTOR PRESENTATION Noninterest expense totaled $86.4 million, a decrease of $7.5 million, or 8.0%, from the prior quarter due to: Salaries and wages decreased $8.0 million to $38.4 million. The third quarter of 2023 included $3.2 million in severance-related expenses arising
Slide 15: Disciplined Approach to Lending in a Strong Florida Economy
15FOURTH QUARTER 2023 INVESTOR PRESENTATION $8,145 $10,134 $10,118 $10,011 $10,063 5.29% 5.86% 5.89% 5.93% 5.85% 4.80% 5.17% 5.31% 5.34% 5.40% Yield Excluding Accretion on Acquired Loans Reported Yield Total Loans 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Total Loans End-of-Period ($ in millions) Disciplined Ap
Slide 16: Loan Portfolio Mix
16FOURTH QUARTER 2023 INVESTOR PRESENTATION At December 31, 2023 Loan Portfolio Mix Segment Balance ($ in thousands) % of Balance Construction & Land Development 767,622 7.6 % Owner Occupied Commercial Real Estate 1,670,281 16.6 % Non-Owner Occupied Commercial Real Estate 3,319,890 33.0 % Residentia
Slide 17: Allowance for Credit Losses and Purchase Discount
17FOURTH QUARTER 2023 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 $ 767,622 $ 8,637 1.13 % $ 8,268 1.08 % Owner Occupied Commerci
Slide 18: Continued Strong Asset Quality - Quarterly Trends
18FOURTH QUARTER 2023 INVESTOR PRESENTATION Net Charge-Offs $4,720 NCO NCO/Average Loans 4Q’22 1Q’23 2Q’23 3Q’23 4Q’23 ($ in thousands) Nonperforming Loans and Past Dues $28,843 $50,787 $48,326 $41,508 $65,104 0.35% 0.50% 0.48% 0.41% 0.65% 0.11% 0.17% 0.25% 0.33% 0.30% NPL NPL/Total Loans Accruing P
Slide 19: Historical Asset Quality Trends
19FOURTH QUARTER 2023 INVESTOR PRESENTATION Net Charge-Offs 0.16% 0.13% 0.05% 0.01% 0.22% NCO/Average Loans 2019 2020 2021 2022 2023 ($ in thousands) Nonperforming Loans and Past Dues 0.52% 0.63% 0.52% 0.65% 0.16% 0.18% 0.10% 0.30% NPL/Total Loans Accruing Past Due / Total Loans 2019 2020 2021 2022
Slide 20: Investment Securities Performance and Composition
20FOURTH QUARTER 2023 INVESTOR PRESENTATION Investment Securities Performance and Composition Unrealized Loss in Securities as of December 31, 2023 (in thousands) Amortized Cost Fair Value Net Unrealized Loss Δ from 3Q’23 Total Available for Sale $ 2,049,302 $ 1,836,020 $ (213,282) $ 73,381 Total He
Slide 21: Distinctive Deposit Franchise Supported by Attractive Markets
21FOURTH QUARTER 2023 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) 4.50% 5.00% 5.25% 5.50% 5.50% 0.21% 0.77% 1.38% 1.79% 2.00% Total Deposits Fed Funds Cost of Deposits 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Distinctive Deposit Franchise Supported by Attractive Markets Quarter over quarter, a
Slide 22: Granular, Diverse and Relationship-Focused Customer Funding Base
22FOURTH QUARTER 2023 INVESTOR PRESENTATION Customer Funding1 End-of-Period ($ in millions) $10,095 $12,161 $11,982 $12,076 $12,029 Transaction Accounts Savings Money Market Other Time Deposits Customer Sweep Accounts 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Granular, Diverse and Relationship-Focused Customer
Slide 23: Robust Capital Position Supporting a Fortress Balance Sheet
23FOURTH QUARTER 2023 INVESTOR PRESENTATION $14.69 $14.25 $14.24 $14.26 $15.08 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 9.1% 8.4% 8.5% 8.7% 9.3% 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 15.8% 14.6% 14.7% 15.1% 15.9% 14.8% 13.4% 13.5% 14.0% 14.6% Total Risk Based Capital Tier 1 Ratio 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 10.4% 6.
Slide 24: Investor Relations
Michael Young EVP, Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 25: Appendix
25FOURTH QUARTER 2023 INVESTOR PRESENTATION Appendix
Slide 26: Quarterly Trend
26FOURTH QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands) 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22 4Q'23 4Q'22 Commercial pipeline at period end $ 306,531 $ 259,445 $ 198,984 $ 289,162 $ 389,697 $ 306,531 $ 389,697 Commercial loan originations 334,229 94,021 307,430
Slide 27: Non-owner Occupied Commercial Real Estate
27FOURTH QUARTER 2023 INVESTOR PRESENTATION Non-owner Occupied Commercial Real Estate CRE Non-Owner Occupied ($ in ‘000s) Balance Balance % of Total Loans Average Loan Size 30+ Days Past- Accruing Non Accrual Weighted Average LTV Retail $ 1,091,605 10.8 % $ 2,059 $ — $ — 51 % Office 576,840 5.7 1,63
Slide 28: Liquidity Sources vs Uninsured Deposits
28FOURTH QUARTER 2023 INVESTOR PRESENTATION Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $5,937 $3,375 $447 $2,576 $215 $1,717 $300 $682 Borrowing Capacity + Cash Uninsured and Uncollateralized Deposits Total Cash & Borrowing Capacity = $
Slide 29: Recognition
29FOURTH QUARTER 2023 INVESTOR PRESENTATION Recognition In October 2023, Seacoast was recognized among Fortune’s Best Workplaces for Women for 2023. Seacoast sets a leading example by fostering inclusivity, empowering women, and creating a workplace where every individual can reach their full potent
Slide 30: Florida's Economic Strength Continues, and Acquisition Opportunities Remain
30FOURTH QUARTER 2023 INVESTOR PRESENTATION Florida’s Economic Strength Continues, and Acquisition Opportunities Remain Florida’s economic strength is evident. Individual and business migration to Florida has surged, and the economy has diversified across finance and technology. Notes: 1Defined as h
Slide 31: Seacoast's Approach to Customer Analytics Is a Unique Advantage
31FOURTH QUARTER 2023 INVESTOR PRESENTATION Seacoast’s Approach to Customer Analytics Is a Unique Advantage
Slide 32: Unique Approach to Growing Customer Value
32FOURTH QUARTER 2023 INVESTOR PRESENTATION Unique Approach to Growing Customer Value
Slide 33: Improved Digital Capabilities and User Experience
33FOURTH QUARTER 2023 INVESTOR PRESENTATION Improved Digital Capabilities and User Experience Continue to Drive Satisfaction and Greater Adoption Across User Base 24% Increase in digital account origination compared to 2022 Increase in Active User Base and User Sessions Since upgrading its online an
Slide 34: Building a Modern Technology Stack That Scales with Growth
34FOURTH QUARTER 2023 INVESTOR PRESENTATION Building a Modern Technology Stack That Scales with Growth, And Delivers On Our Vision for Customer & Banker Experience… Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022
Slide 35: Non-GAAP financial measures
35FOURTH QUARTER 2023 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 36: Quarterly Trend Reconciliation
36FOURTH QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22 4Q'23 4Q'22 Net Income $ 29,543 $ 31,414 $ 31,249 $ 11,827 $ 23,927 $ 104,033 $ 106,507 Total noninterest income 17,338 17,793 21,576 22,445 17,6
Slide 37: Quarterly Trend Reconciliation
37FOURTH QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22 4Q'23 4Q'22 Adjusted Noninterest Expense $ 79,479 $ 83,153 $ 83,992 $ 81,925 $ 70,431 $ 328,549 $ 229,698 Provision for unfunded commitments — —
Slide 38: Quarterly Trend Reconciliation
38FOURTH QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22 4Q'23 4Q'22 Return on Average Assets (ROA) 0.80 % 0.84 % 0.84 % 0.34 % 0.78 % 0.71 % 0.96 % Impact of removing average intangible assets and rela
Slide 39: Quarterly Trend Reconciliation
39FOURTH QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'23 3Q'23 2Q'23 1Q'23 4Q'22 4Q'23 4Q'22 Yield on Loans1 5.85 5.93 5.89 5.86 5.29 5.88 4.62 Impact of accretion on acquired loans (0.45) (0.59) (0.58) (0.69) (0.49) (0.57) (0
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