Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q3 2023 Earnings Presentation
31 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Oct 27, 2023
Slide 1: Earnings Presentation Third Quarter 2023
EARNINGS PRESENTATION THIRD QUARTER 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 impact on the valuation of Seacoast’s investments due to market volatility or counterparty payment risk, as well as Securities
Slide 3: Valuable Florida Franchise with Strong Capital and Liquidity
Valuable Florida Franchise with Strong Capital and Liquidity SEACOAST BANK FOOTPRINT Jacksonville • $14.8 billion in assets as of • Market Cap: $1.9 billion as of MSA September 30, 2023, operating in the September 30, 2023 nation’s fastest growing and third most populated state • Serving over 280,00
Slide 4: Third Quarter 2023 Highlights
Third Quarter 2023 Highlights Comparisons are to the second quarter of 2023 unless otherwise stated • Increased Florida market share to #15 compared to #18. • 3.7% annualized organic deposit growth, with the additional liquidity used to pay down brokered deposits and FHLB borrowings. • Strong capita
Slide 5: Net Interest Income
Net Interest Income Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans $131,351 $127,153 $119,858 $119,505 ($ in thousands) $88,399 4.36% 4.31% 3.67% 3.86% 3.57% 4.01% 3.78% 3.58% 3.42% 3.13% 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 • Net interest income1 totaled $119.5 million,
Slide 6: Noninterest Income
Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $21,576 $21,752 $2,068 $2,068 $17,793 $18,180 $16,103 $4,828 $2,197 $16,465 $5,004 $2,197 $1,363 $1,363 BOLI $1,160 BOLI $1,160 Other Income 2 $576 $4,533 Other Income3 $576 $4,920 $3,932 $4,294 Insu
Slide 7: Continued Focus on Building Wealth Management
Continued Focus on Building Wealth Management Assets Under Management ($ in millions) $1,578 $1,579 $1,518 $1,387 $1,239 $1,228 $1,228 Assets under management totaled $1.6 billion at September $1,162 30, 2023, increasing 29% from September 30, 2022. This is a $1,158 $1,161 result of the wealth manag
Slide 8: Noninterest Expense
Noninterest Expense Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $107,865 $10,256 $93,915 $83,992 $83,153 $4,062 $9,360 $9,739 $9,241 $10,928 $2,116 $2,679 $2,397 $2,773 $9,810 2 $9,911 $9,724 Other Expense $20,222 $2,258 Other Expense2 Legal & Professional $61
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Drummond Bank Adjusted - Efficiency1 and Apollo Bank Sabal Palm Bank Professional and Florida Business Bank Freedom Bank Bank Increase in adjusted efficiency ratio reflects the impact of: Legacy Bank 67% • higher deposit rates, including the first full quarte
Slide 10: Disciplined Approach to Lending in a Strong Florida Economy
Disciplined Approach to Lending in a Strong Florida Economy Total Loans End-of-Period ($ in millions) $10,134 $10,118 $10,011 Loans outstanding declined by $107 million as 5.89% 5.93% 5.86% the Company maintains its disciplined approach to lending. $8,145 Loan yields increased four basis points from
Slide 11: Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio At September 30, 2023 ($ in thousands) Construction & Land Development and CRE Loans to Total Risk Based Capital Paycheck Protection Program 276% $4,102 Peers Consumer Construction and 64% <1% Land Development $248,540 2% $793,736 234% SB
Slide 12: Loan Portfolio Mix
Loan Portfolio Mix At September 30, 2023 Balance Segment ($ in thousands) % of Balance PPP, 0.04% Non-Owner Occupied CRE CRE-Retail, 10.41% Consumer, 2.48% Retail $ 1,041,818 10.41 % Office 595,381 5.95 CRE-Office, 5.95% Multifamily 5+ 501,614 5.01 Residential, 24.16% Hotel/Motel 394,367 3.94 Indust
Slide 13: Non-owner Occupied Commercial Real Estate in Florida's Strongest Markets
Non-owner Occupied Commercial Real Estate in Florida’s Strongest Markets Balance Non-owner Occupied Commercial Real Estate by MSA ($ in thousands) Balance % of Total Loans Miami / Dade County $ 617,179 6.15 % Orlando-Kissimmee, FL MSA 444,550 4.44 13% of total loans in vibrant, South Florida tri- Ft
Slide 14: 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 $ 1,041,818 10.41 % $ 1,996 $ — $ — 52 % Office 595,381 5.95 1,637 106 231 55 Multifamily 5+ 501,614 5.01 953 301 2
Slide 15: 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 $ 793,736 $ 7,685 0.97 % $ 10,235 1.29 % Owner Occupied Commercial Real Estate 1,675,881 6,065 0.36 28,614
Slide 16: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Nonperforming Loans and Criticized and Classified Loans Net Charge-Offs NCO NCO/Average Loans NPL NPL/Total Loans Criticized + Classified Loans/Total Assets $50,787 $48,326 $41,508 $12,748 $28,843 0.50% $21,464 $3,188 1.60% $782 1.42% 1.40% 1.36
Slide 17: Investment Securities Performance and Composition
Investment Securities Performance and Composition • Portfolio yield increased 19 basis points to 3.32% from 3.13% in the prior quarter. $1,861 $2,016 $1,872 $1,916 $1,842 • AFS securities ended the quarter with a net unrealized loss of $286.7 million compared to a ($ in millions) 3.32% net unrealize
Slide 18: Distinctive Deposit Franchise Supported by Attractive Markets
Distinctive Deposit Franchise Supported by Attractive Markets Deposits End-of-Period ($ in millions) $12,310 $12,283 $12,108 $9,982 3.7% annualized organic deposit growth, with the resulting additional liquidity used to pay down brokered deposits and $8,765 FHLB borrowings. 5.50% Continued focus on
Slide 19: Granular, Diverse and Relationship-Focused Deposit Base
Granular, Diverse and Relationship-Focused Deposit Base Deposits End-of-Period ($ in millions) $12,310 $12,283 $12,108 7% 8% 10% 3% 5% 3% Excluding brokered deposits, total deposits increased by $9,982 $108 million, or 3.7% annualized. 5% 24% 1% 23% $8,765 20% 26% Noninterest demand deposits are a p
Slide 20: Liquidity Sources vs Uninsured Deposits
Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,445 $625 Unpledged Securities $300 Lines of Credit Uninsured and uncollateralized deposits represent 29% of total deposits. Total Cash & Borrowing Capacity = $6.4 Billion Total liquidity sou
Slide 21: Robust Capital Position Supporting a Fortress Balance Sheet
Robust Capital Position 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 $24.24 $24.14 $24.06 $22.45 $20.95 9.8% 9.1% 8.4% 8.5% 8.7% $15.98 $14.69 $14.25 $14.24 $14.26 3Q'22 4Q
Slide 22: Investor Relations Contacts
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 23: Appendix
Appendix THIRD QUARTER 2023 EARNINGS PRESENTATION 23
Slide 24: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Nine Months Ended (Amounts in thousands) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 3Q'23 3Q'22 Commercial pipeline at period end $ 300,798 $ 217,574 $ 297,380 $ 395,652 $ 530,430 $ 300,798 $ 530,430 Commercial loan originations 106,497 317,378 321,665 489,605 3
Slide 25: Recognition
Recognition In October 2023, Seacoast has been Seacoast was Certified™ by Great recognized among Place To Work® for Fortune’s Best 2023. As the global Workplaces for authority on workplace Women for 2023. culture, Great Place To Seacoast sets a leading Work® brings 30 years of example by fostering g
Slide 26: Florida Population Trends
Florida Population Trends 2023 2010-2023 2023 2023-2028 2023-2028 Percent of Projected Median Projected HH Number of Deposits In Deposit Market National Total Population Population Population Household Income Income Change 1 MSA Market Rank Branches1 Market ($000)1 Share (%)1 Franchise (%)1 (Actual)
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 trends methods other than Generally Accepted Accounting Principles and facilitate comparisons with the performance o
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Net Income $ 31,414 $ 31,249 $ 11,827 $ 23,927 $ 29,237 Total noninterest income 17,793 21,576 22,445 17,651 16,103 Securities losses/(gains), net 387 176 (107) (18) 362 BOLI be
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Adjusted Noninterest Expense $ 83,153 $ 83,992 $ 81,925 $ 70,431 $ 56,899 Provision for unfunded commitments — — (1,239) — (1,015) Foreclosed property expense and net (loss) gai
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Return on Average Assets (ROA) 0.84 % 0.84 % 0.34 % 0.78 % 1.10 % Impact of removing average intangible assets and related amortization 0.20 0.22 0.18 0.16 0.07 Return on Averag
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Yield on Loans1 5.93 % 5.89 % 5.86 % 5.29 % 4.45 % Impact of accretion on acquired loans (0.59) (0.58) (0.69) (0.49) (0.14) Yield on loans excluding accretion on acquired loans
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