Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q1 2020 Earnings Presentation
30 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Apr 28, 2020
Slide 1: Earnings Presentation First Quarter 2020 Results
Earnings Presentation FIRST QUARTER 2020 RESULTS Contact: (email) Chuck.Shaffer@SeacoastBank.com (phone) 772.221.7003 (web) www.SeacoastBanking.com
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 adversely affect us or the banking industry; our concentration in commercial real estate loans; the failure 27A of the Securities Act of 193
Slide 3: Valuable Florida Franchise, Well Positioned with Strong Capital and Liquidity
Valuable Florida Franchise, Well Positioned with Strong Capital and Liquidity Seacoast Customer Map • $7.4 billion in assets as of March 31, • Highly disciplined credit portfolio 2020, operating in the nation’s third- most populous state • Prudent liquidity position • Strong and growing presence in
Slide 4: COVID-19 Response
COVID-19 Response Associates Operations and Service Levels • Over 60% of the employee base working remotely • Branches are open for appointments and drive-thru • Staggering shifts and locations, including for • Heightened cleaning and protection protocols leadership • Limited visitors in operations
Slide 5: Consistent Growth in NII, NIM Expands Sequentially
Consistent Growth in NII, NIM Expands Sequentially ($ In Thousands) $63,291 $60,861 $60,219 $61,027 $61,846 4.02% 3.94% 3.89% 3.84% 3.93% 3.76% 3.67% 3.64% 3.63% 3.66% 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans • Net interest inco
Slide 6: Continued Strong Performance in Noninterest Income
Continued Strong Performance in Noninterest Income 1 Noninterest Income ($ in thousands) Adjusted Noninterest Income ($ in thousands) $16,376 $904 $14,688 $14,669 $886 $13,837 $886 $12,836 $12,845 $904 $5,456 $915 $3,516 $915 $3,497 $2,917 $2,628 $2,619 $139 $139 $576 $576 $636 $1,514 $2,208 $636 $1
Slide 7: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $47,798 $43,099 $4,703 $41,098 $41,482 $3,363 $5,862 $38,057 $4,570 $5,837 $5,690 $35,967 $2,847 $4,910 $2,242 $2,816 $4,875 $6,375 $2,025 $4,633 $5,433 $6,002 $1,419 $5
Slide 8: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 74% 71% 66% 64% 65% 60% 61% 59% 58% 58% 58% 57% 57% 57% 57% 56% 56% 53% 53% 54% 54% 51% 49% 48% 49% 48% 7 7 7 7 8 8 8 8 9 9 9 9 0 7 7 7 7 8 8 8 8 9 9 9 9 0 '1 '1 '1 '1 '1 '1 '1 '1 '1 '1 '1 '1 '2 '1 '1 '1 '1 '1 '1 '1 '1 '1 '1 '1 '1 '2 Q
Slide 9: Loan Growth Purposely Slowed in the Quarter as a Result of COVID-19
Loan Growth Purposely Slowed in the Quarter as a Result of COVID-19 Total Loans Outstanding ($ in millions) • Seacoast began accepting applications from customers on Friday, April 3 for the Paycheck Protection Program (“PPP”) $5,198 $5,317 $4,986 established by the CARES Act. In the first round of t
Slide 10: Seacoast's Lending Strategy has Resulted in a Diverse Loan Portfolio
Seacoast's Lending Strategy has Resulted in a Diverse Loan Portfolio At March 31, 2020 ($ in thousands) • Construction and land development and Acquisition, Development commercial real estate loans, as defined in Commercial & Construction regulatory guidance, represent 32% and 181%, & Financial $295
Slide 11: OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Type and Industry
OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Type and Industry OOCRE & Acquisition, Commercial Real Development & ($ in thousands) Estate Construction Total % of Total Loans Office Building $ 694,678 $ 6,278 $ 700,956 13% Retail 455,032 16,296 471,328 9% Industrial & Warehouse 356,1
Slide 12: The Commercial & Financial Portfolio Exhibits Significant Industry Diversification
The Commercial & Financial Portfolio Exhibits Significant Industry Diversification Commercial & ($ in thousands) Financial % of Total Loans Management Companies1 $ 160,033 3% Professional, Scientific, Technical & Other Services 92,961 2% Construction 89,300 2% Finance & Insurance 78,807 2% Real Esta
Slide 13: Investment Securities
Investment Securities • Unrealized gains in the investment portfolio increased $7.3 million quarter-over-quarter as longer duration commercial mortgage backed securities and agency mortgages appreciated in value. Collateralized loan obligation ("CLO") values declined as a result of the COVID-19 mark
Slide 14: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $5,887 $5,673 • Total deposits increased $303 million, or 5%, quarter- $5,606 $5,541 $5,585 over-quarter and increased $282 million, or 5%, $1,270 $1,129 $1,218 compared to the first quarter of 2019. $1,054
Slide 15: Average Deposit Balances and Cost
Average Deposit Balances and Cost Deposit Mix and Cost of Deposits Trended Cost of Deposits Fed Funds Cost of Deposits 0.67% 0.76% 0.73% 0.61% 0.57% 9% 9% 9% 9% 9% 2.50%2.50%2.50% 20% 20% 20% 21% 21% 2.25% 2.00% 2.00% 21% 21% 21% 20% 20% 1.75% 1.75% 1.50% 1.25%1.25% 14% 14% 14% 14% 13% 1.00% 6% 6% 7
Slide 16: CECL Adoption
CECL Adoption Impact of Adoption January 1, $27,674 ($ in thousands) 2020 $(973) $85,411 ) s $2,330 Increase to allowance for non-acquired loans $ 10,577 d n a s $21,226 Increase to allowance for acquired loans 10,649 u o h t Reversal of contra-loan balances for purchased n (706) i $35,154 $ credit
Slide 17: CECL Adoption and Allowance Coverage
CECL Adoption and Allowance Coverage Allowance for Credit Losses Rollforward for the Three Months ended March 31, 2020 Impact of Initial Impact Provision TDR Beginning Adoption of Allowance on for Credit Charge-offs Recoveries Allowance Ending (In thousands) Balance ASC 326 PCD Loans Losses Adjustme
Slide 18: Continued Strong Asset Quality Trends Through First Quarter
Continued Strong Asset Quality Trends Through First Quarter ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO / Loans NPL - Non-Acquired NPL- Acquired Total NPL Ratio $3,225 $5,965 $5,644 $7,684 $2,111 $6,986 $1,841 $6,990 $20,400 $20,990 $17,898 $963 $974 $15,423 $15,810 0.08% 0.15% 0.17
Slide 19: Prudent Liquidity Position
Prudent Liquidity Position Total liquidity resources of $3.37 billion at March 31, 2020: $3,372 • Cash and cash equivalents of $315 million $3,253 • Unsecured lines of credit of $160 million $3,081 • Lines of credit under lendable collateral value of $1.2 billion • $852 million debt securities and $
Slide 20: Strong Capital
Strong Capital Tangible Book Value / Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share 11.1% 11.1% $18.70 $19.13 $18.82 10.7% 10.7% $17.44 $18.08 10.2% $14.30 $14.76 $14.42 $12.98 $13.65 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 1Q'19 2Q'19 3Q'19 4Q
Slide 21: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 $11.39 $11.15 $10.95 $10.55 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 • Compounded annual growth rate of 11% in tangible book value per share in the last three years. • The decl
Slide 22: Contact Details
Contact Details: Seacoast Banking Corporation of Florida Charles M. Shaffer Executive Vice President Chief Operating Officer and Chief Financial Officer (772) 221-7003 INVESTOR RELATIONS NASDAQ: SBCF FIRST QUARTER 2020 EARNINGS PRESENTATION 22
Slide 23: Appendix
Appendix FIRST QUARTER 2020 EARNINGS PRESENTATION 23
Slide 24: First Bank of The Palm Beaches Acquisition Fair Value of Assets and Liabilities Acquired
First Bank of The Palm Beaches Acquisition Fair Value of Assets and Liabilities Acquired (Preliminary) Loan Portfolio Valuation and CECL Impact • Loans acquired of $146.9 million includes: As of Acquisition ◦ $2.9 million purchase discount on $106.7 million in non-PCD loans, to be accreted (In thous
Slide 25: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend (Amounts in thousands) 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 Commercial pipeline at period end $ 171,125 $ 277,788 $ 396,422 $ 300,207 $ 193,651 Commercial loan originations1 183,330 304,343 325,406 238,057 186,003 Residential pipeline-saleable at period en
Slide 26: 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 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 Net Income $ 709 $ 27,176 $ 25,605 $ 23,253 $ 22,705 Total noninterest income 14,688 16,376 13,943 13,577 12,836 Securities (gains)/losses, net (19) (2,539) 847 466 9 BOLI benef
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 Adjusted Noninterest Expense $ 41,482 $ 35,967 $ 36,911 $ 38,027 $ 41,098 Foreclosed property expense and net gain/(loss) on sale 315 (3) (262) 174 40 Net Adjusted Noninterest E
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 1Q'20 4Q'19 3Q'19 2Q'19 1Q'19 Loan interest income excluding accretion on acquired loans $ 59,237 $ 59,515 $ 59,279 $ 58,169 $ 58,397 Accretion on acquired loans 4,287 3,407 3,859 4,166 3,938 Loan Interest I
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation $307 $1,456 $5,462 $4,553 ) s $(1,544) $(19) d n a s u o h t n i $ ( $709 Net Income Merger Amortization Business Tax Effect Securities Adjusted Related of Intangibles Continuity of Adjustments Gains, Net Net Income Charges Expenses FIRST QUARTER 2020 EARNINGS PRESENT
Seacoast Banking Corp of Florida — Q1 2020 Earnings Presentation on 6ix