Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q4 2020 Earnings Presentation
31 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jan 29, 2021
Slide 1: Earnings Presentation Fourth Quarter 2020 Results
Earnings Presentation FOURTH QUARTER 2020 RESULTS Contact: (email) Tracey.Dexter@SeacoastBank.com (phone) 772.403.0461 (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 that adversely affect us or the banking industry; our concentration in commercial real estate loans; Section 27A of the Securities Act of 1933 and S
Slide 3: 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 December 31, 2020, operating in the nation’s third-most populous state • Prudent liquidity position • S
Slide 4: Florida to Benefit from the Work-from-Anywhere Future Accelerated by COVID-19
Florida to Benefit from the Work-from-Anywhere Future Accelerated by COVID-19 • Companies and individuals seeking real estate affordability, lower taxes, warmer weather, and easy flights back to the Northeast are migrating to Florida. • Florida's population forecast was revised in November 2020 to r
Slide 5: Seacoast's Integrated Delivery Model Supports Our Growth Strategy
Seacoast’s Integrated Delivery Model Supports Our Growth Strategy Strong momentum in usage of digital tools and other non-branch delivery channels, and tools to equip our teams to outperform % of consumer deposits % Residential sales completed outside of the 58% branch. 21% originated from alternati
Slide 6: Fourth Quarter Highlights
Fourth Quarter Highlights • Earnings per share of $0.53 compared to $0.42. Adjusted earnings per share1 increased to $0.55 from $0.50. • On a GAAP basis, ended the quarter at 1.49% Return on Tangible Assets (ROTA) and 13.87% Return on Tangible Common Equity (ROTCE). On an adjusted basis, fourth quar
Slide 7: Net Interest Income and Margin
Net Interest Income and Margin $67,388 $68,903 $61,846 $63,291 $63,621 ($ in thousands) 3.84% 3.93% 3.70% 3.59% 3.42% 3.63% 3.66% 3.46% 3.40% 3.37% 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans • Excluding both accretion on a
Slide 8: Continued Strength in Noninterest Income
Continued Strength in Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $16,376 $16,946 $16,942 $899 $14,930 $899 $904 $14,948 $2,616 $889 $13,837 $2,611 $889 $5,456 $252 $2,314 $904 $252 $2,332 BOLI $113 BOLI 2 $2,917 $113 Other Income $5,283 Other
Slide 9: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $51,674 $7,772 $45,432 $43,681 $7,525 $41,906 $3,018 $6,468 2 $38,056 $6,456 Other Expense $6,139 $509 Other Expense 2 $35,967 $1,714 Legal & Professional $4,910 Legal &
Slide 10: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 First Green Palm Beach Bank Freedom Community PBCB and Bank Bank and NorthBank NorthStar Star Bank First Bank of the Acquisitions 66% Palm Beaches Palm Beach Community and 64% North Star Bank Acquisition 62% 60% 58% 58% 57% 57% 57% 56%
Slide 11: Disciplined Approach to Lending in an Uncertain Environment
Disciplined Approach to Lending in an Uncertain Environment • Loans outstanding totaled $5.7 billion, an increase of Total Loans Outstanding ($ in millions) $537 million, or 10%, year-over-year. $5,772 $5,858 $5,735 • Loan originations increased 60% to $541 million in the $5,198 $5,317 $576 $639 $56
Slide 12: Seacoast's Lending Strategy Has Produced and Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Has Produced and Sustains a Diverse Loan Portfolio At December 31, 2020 ($ in thousands) Paycheck Acquisition, Protection Development Program & Construction • Construction and land development and commercial $566,961 $245,108 real estate loans, as defined in regulatory gu
Slide 13: Loan Accommodations
Loan Accommodations Loan Accommodations Outstanding at Period End • Accommodations generally include deferral of full or partial $1,077,043 payments for a specified period • Accrual status and risk ratings are evaluated on a case-by- case basis • Of loans with deferrals that expired in 2020: $702,65
Slide 14: OOCRE, CRE and AD&C Loans Widely Distributed Across Asset Value Type and Industry
OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Value Type and Industry At December 31, 2020 ($ in thousands) OOCRE, CRE % of Total With Payment ($ in thousands) & AD&C Loans Accomodations Office Building $ 761,118 13% $ 6,416 Retail 454,863 8% 4,505 Industrial & Warehouse 385,875 7% 6
Slide 15: Commercial & Financial Portfolio Exhibits Significant Industry Diversification
The Commercial & Financial Portfolio Exhibits Significant Industry Diversification At December 31, 2020 ($ in thousands) Commercial & With Payment ($ in thousands) Financial % of Total Loans Accommodations Management Companies1 $ 202,442 4% $ — Professional, Scientific, Technical & Other Services 10
Slide 16: Investment Securities Performance and Composition
Investment Securities Performance and Composition Portfolio yield declined 39 basis points to 1.73% from 2.12% in the prior quarter. The decline is attributed to faster prepayments, rate resets and lower yielding portfolio additions in the fourth quarter. The net unrealized gain increased from $33.6
Slide 17: Investment Securities Performance and Composition
Investment Securities Performance and Composition Our portfolio remains primarily backed by US government agencies. Non-guaranteed mortgage bonds are absent any hotel, shopping, or industrial exposure and is 100% comprised of housing collateral. The CLO portfolio only includes AAA and AA bonds with
Slide 18: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $6,915 $6,933 $6,667 • Total deposits increased $18 million quarter- $831 $1,017 over-quarter and increased $1.3 billion, or $5,887 $1,179 24%, compared to the fourth quarter of 2019. $5,585 Fourth quarter
Slide 19: Cost of Deposits
Cost of Deposits Deposit Mix and Cost of Deposits Trended Cost of Deposits Fed Funds Cost of Deposits 0.61% 0.57% 0.31% 0.24% 0.19% 9% 9% 9% 10% 10% 2.50% 2.50% 2.50% 2.25% 21% 21% 20% 20% 21% 2.00% 2.00% Cost of Deposits 1.75% 1.75% 20% 20% 18% 20% Savings 22% 1.50% Int Bearing Demand Money Market
Slide 20: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loan Allowance for ($ in thousands) Outstandings Credit Losses % of Category Purchase Discount % of Category Acquisition, Development & Construction $ 245,108 $ 4,920 2.01 % $ 631 0.26 % Owner Occupied Commercial Real Estate 1,141,310 9,868 0.86 6,23
Slide 21: Asset Quality Trends
Asset Quality Trends ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO/Total Loans NPL NPL/Total Loans $3,225 $3,127 $36,897 $36,110 $30,051 $26,955 $25,582 $1,751 $1,736 0.52% 0.48% 0.52% 0.63% 0.63% $973 0.25% 0.07% 0.12% 0.12% 0.21% 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 4Q'19 1Q'20 2Q'20 3Q'20
Slide 22: Strong Capital Supporting a Fortress Balance Sheet
Strong Capital Supporting a Fortress Balance Sheet Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share $20.46 $19.45 $19.91 11.1% $19.13 $18.82 10.7% 10.7% 11.0% 10.2% $16.16 $15.11 $15.57 $14.76 $14.42 4Q'19 1Q'20
Slide 23: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $16.16 $15.57 $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 $11.39 $11.15 $10.95 $10.41 $10.55 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 4Q'20 • Compounded annual growth rate of 12% in tangible book
Slide 24: Contact Details: Seacoast Banking Corporation of Florida
Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF FOURTH QUARTER 2020 EARNINGS PRESENTATION 24
Slide 25: Appendix
Appendix FOURTH QUARTER 2020 EARNINGS PRESENTATION 25
Slide 26: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Twelve Months Ended (Amounts in thousands) 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19 Commercial pipeline at period end $ 166,735 $ 256,191 $ 117,042 $ 171,125 $ 277,788 166,735 277,788 Commercial loan originations1 277,389 88,245 106,857 183,330 304
Slide 27: 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 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19 Net Income $ 29,347 $ 22,628 $ 25,080 $ 709 $ 27,176 $ 77,764 $ 98,739 Total noninterest income 14,930 16,946 15,006 14,688 16,376 61,570 56,732
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19 Adjusted Noninterest Expense $ 41,906 $ 45,432 $ 40,676 $ 41,482 $ 35,967 $ 169,496 $ 152,003 Foreclosed property expense and net gain/(loss) on
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19 Return on Average Tangible Assets (ROTA) 1.49 1.20 1.37 0.11 1.66 1.08 1.56 Impact of other adjustments for Adjusted Net Income 0.01 0.18 (0.04)
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'20 3Q'20 2Q'20 1Q'20 4Q'19 4Q'20 4Q'19 Net Interest income1 $ 68,903 $ 63,621 $ 67,388 $ 63,291 $ 61,846 $ 263,203 $ 243,953 Accretion on acquired loans (4,448) (3,254) (2,988) (4,287)
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