Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q4 2023 Earnings Presentation
28 slides from Seacoast Banking Corporation Of Florida's earnings presentation, 2024
Slide 1: Earnings Presentation Fourth Quarter and Full Year 2023
EARNINGS PRESENTATION FOURTH QUARTER AND FULL YEAR 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 the risks of mergers, acquisitions and divestitures, including Seacoast’s ability to continue to identify acquisition targets, Sec
Slide 3: Valuable Florida Franchise with Strong Capital and Liquidity
Valuable Florida Franchise with Strong Capital and Liquidity • $14.6 billion in assets as of • Market Cap: $2.4 billion as of December 31, 2023, operating in the December 31, 2023 nation’s fastest growing and third most populated state • Serving over 275,000 customers throughout Florida, with a wide
Slide 4: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights Comparisons are to the third quarter of 2023 unless otherwise stated • 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%, adju
Slide 5: Net Interest Income
Net Interest Income Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans $3.5 million lower accretion on acquired loans quarter-over- $131,351 quarter $127,153 $119,858 $119,505 $111,035 ($ in thousands) 4.36% 4.31% 3.86% 3.57% 3.36% 4.01% 3.78% 3.42% 3.13% 3.02% 4Q'22
Slide 6: Noninterest Income
Noninterest Income (In Thousands) Noninterest income declined $0.5 million from the prior quarter to $17.3 million, $18 $19,775 and adjusted noninterest income1 increased $1.6 million to $19.8 million. $17,633 $18,180 Changes include: Service charges on deposits increased $0.2 million from the prior
Slide 7: Continued Focus on Building Wealth Management
Continued Focus on Building Wealth Management Assets Under Management ($ in millions) $1,711 Assets under management totaled $1.7 billion at December 31, 2023, increasing 23% from December 31, 2022. This is a result of the wealth management $1,387 team’s continuing success at winning business with $
Slide 8: Noninterest Expense
Noninterest Expense Noninterest expense totaled $86.4 million, a decrease of $7.5 million, or 8.0%, (In Thousands) from the prior quarter due to: Salaries and wages decreased $8.0 million to $38.4 million. The third quarter of $93,915 2023 included $3.2 million in severance-related expenses arising
Slide 9: Disciplined Approach to Lending in a Strong Florida Economy
Disciplined Approach to Lending in a Strong Florida Economy Total Loans End-of-Period ($ in millions) $10,134 $10,118 $10,011 $10,063 Loans outstanding increased by $51.8 million, or 5.89% 5.93% 5.86% 5.85% 2% annualized, as the Company maintains a disciplined approach to lending. $8,145 5.29% Loan
Slide 10: Loan Portfolio Mix
Loan Portfolio Mix At December 31, 2023 Balance Segment ($ in thousands) % of Balance Consumer, 2.5% Construction & Land Development 767,622 7.6 % CRE-Retail, 10.8% Owner Occupied Commercial Real 1,670,281 16.6 % Estate Non-Owner Occupied Commercial Real 3,319,890 33.0 % Estate CRE-Office, 5.7% Resi
Slide 11: 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 $ 767,622 $ 8,637 1.13 % $ 8,268 1.08 % Owner Occupied Commercial Real Estate 1,670,281 5,529 0.33 25,194 1
Slide 12: Continued Strong Asset Quality - Quarterly Trends
Continued Strong Asset Quality - Quarterly Trends ($ in thousands) Nonperforming Loans and Past Dues Net Charge-Offs NCO NCO/Average Loans NPL NPL/Total Loans Accruing Past Due / Total Loans $65,104 $12,748 $50,787 $48,326 0.50% $41,508 0.65% $28,843 0.50% 0.48% $3,188 $4,720 0.41% 0.35% 0.33% $782
Slide 13: Historical Asset Quality Trends
Historical Asset Quality Trends 1.66% ($ in thousands) Nonperforming Loans and Past Dues Net Charge-Offs NCO/Average Loans NPL/Total Loans Accruing Past Due / Total Loans 0.63% 0.65% 0.22% 0.52% 0.52% 0.50% 0.16% 0.40% 0.13% 0.30% 0.05% 0.16% 0.18% 0.35% 0.01% 0.10% 2019 2020 2021 2022 2023 2019 202
Slide 14: Investment Securities Performance and Composition
Investment Securities Performance and Composition Recognized $2.9 million in losses on sales of securities in the fourth quarter of $2,016 2023. Transaction benefits: $1,872 $1,916 • Sold approximately $82.9 million, or 3%, of the bank’s investment $1,842 $1,836 securities portfolio, reinvested in p
Slide 15: Distinctive Deposit Franchise Supported by Attractive Markets
Distinctive Deposit Franchise Supported by Attractive Markets $186 lower brokered deposits, $100 lower Deposits End-of-Period ($ in millions) IOTA/title company Quarter over quarter, attorney IOTA and title company balances balances declined by nearly $100 million due to lower real estate activity $
Slide 16: Granular, Diverse and Relationship-Focused Customer Funding Base
Granular, Diverse and Relationship-Focused Customer Funding Base Customer Funding1 End-of-Period ($ in millions) Customer funding, which includes sweep repurchase $12,206 $11,982 $12,076 $12,029 agreements and excludes brokered deposits, declined modestly 2% 2% 3% 2% by $47 million. 7% 9% 10% 11% $1
Slide 17: Robust Capital Position Supporting a Fortress Balance Sheet
Robust Capital Position Supporting a Fortress Balance Sheet Tangible Book Value Per Share Tangible Common Equity / Tangible Assets $15.08 $14.69 9.1% 9.3% 8.5% 8.7% 8.4% $14.25 $14.24 $14.26 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Return on Tangible Common Equity Total Risk Based
Slide 18: Tracey L. Dexter, Michael Young - Investor Relations
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 19: Appendix
Appendix FOURTH QUARTER 2023 EARNINGS PRESENTATION 19
Slide 20: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend 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 94,021 307,430 320,209
Slide 21: 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 $ 1,091,605 10.8 % $ 2,059 $ — $ — 51 % Office 576,840 5.7 1,638 11,510 334 55 Multifamily 5+ 353,184 3.5 1,799 — —
Slide 22: Liquidity Sources vs Uninsured Deposits
Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $5,937 $682 Unpledged Securities Uninsured and uncollateralized deposits represent 29% of $300 Lines of Credit total deposits. Total Cash & Borrowing Capacity = $5.9 Billion Total liquidity sou
Slide 23: Recognition
Recognition In October 2023, Seacoast was Seacoast earned recognized among recognition from the Fortune’s Best South Florida Business Workplaces for Journal and the Orlando Women for 2023. Seacoast sets a leading Business Journal as one example by fostering of 2023’s Best Places to inclusivity, empo
Slide 24: 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 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 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 17,651 79,152 66
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 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 — — — (1,239) —
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 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 related 0.19 0.2
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 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) (0.27) Yield o
Seacoast Banking Corporation of Florida — Q4 2023 Earnings Presentation on 6ix