Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q4 2023 Earnings Presentation
28 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jan 25, 2024
Slide 1: Earnings Presentation Fourth Quarter and Full Year 2023
EARNINGS PRESENTATION FOURTH QUARTER AND FULL YEAR 2023 2023
Slide 2: Forward-Looking Statements
2FOURTH QUARTER 2023 EARNINGS 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: Valuable Florida Franchise with Strong Capital and Liquidity
3FOURTH QUARTER 2023 EARNINGS 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 4: Fourth Quarter 2023 Highlights
4FOURTH QUARTER 2023 EARNINGS PRESENTATION • Net income of $29.5 million, or $0.35 per diluted share; adjusted net income1 of $36.5 million, or $0.43 per diluted share. • Adjusted pre-tax pre-provision return on tangible assets1 of 1.48%, adjusted return on tangible common equity1 of 11.80%, and an
Slide 5: Net Interest Income
5FOURTH QUARTER 2023 EARNINGS PRESENTATION Net Interest Income ($ 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'2
Slide 6: Noninterest Income
6FOURTH QUARTER 2023 EARNINGS 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 $0.2 million from the prior quarter and increa
Slide 7: Continued Focus on Building Wealth Management
7FOURTH QUARTER 2023 EARNINGS PRESENTATION Assets Under Management ($ 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 8: Noninterest Expense
8FOURTH QUARTER 2023 EARNINGS 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 9: Disciplined Approach to Lending in a Strong Florida Economy
9FOURTH QUARTER 2023 EARNINGS 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 App
Slide 10: Loan Portfolio Mix
10FOURTH QUARTER 2023 EARNINGS 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 11: Allowance for Credit Losses and Purchase Discount
11FOURTH QUARTER 2023 EARNINGS 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 12: Continued Strong Asset Quality - Quarterly Trends
12FOURTH QUARTER 2023 EARNINGS 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 $65,104 0.35% 0.50% 0.48% 0.41% 0.65% 0.11% 0.17% 0.25% 0.33% 0.30% NPL NPL/Total Loans Accruing P
Slide 13: Historical Asset Quality Trends
13FOURTH QUARTER 2023 EARNINGS PRESENTATION Net Charge-Offs 0.16% 0.13% 0.05% 0.01% 0.22% NCO/Average Loans 2019 2020 2021 2022 2023 ($ 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 14: Investment Securities Performance and Composition
14FOURTH QUARTER 2023 EARNINGS 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 15: Distinctive Deposit Franchise Supported by Attractive Markets
15FOURTH QUARTER 2023 EARNINGS 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 16: Granular, Diverse and Relationship-Focused Customer Funding Base
16FOURTH QUARTER 2023 EARNINGS PRESENTATION Customer Funding1 End-of-Period ($ in millions) $10,150 $12,206 $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 17: Robust Capital Position Supporting a Fortress Balance Sheet
17FOURTH QUARTER 2023 EARNINGS 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 18: 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
19FOURTH QUARTER 2023 EARNINGS PRESENTATION Appendix
Slide 20: Quarterly Trend
20FOURTH QUARTER 2023 EARNINGS 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 21: Non-owner Occupied Commercial Real Estate
21FOURTH QUARTER 2023 EARNINGS 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 LTV Retail $ 1,091,605 10.8 % $ 2,059 $ — $ — 51 % Office 576,840 5.7 1,638 11,510
Slide 22: Liquidity Sources vs Uninsured Deposits
22FOURTH QUARTER 2023 EARNINGS 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 23: Recognition
23FOURTH QUARTER 2023 EARNINGS 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 24: Explanation of Certain Unaudited Non-GAAP Financial Measures
24FOURTH QUARTER 2023 EARNINGS 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 25: Quarterly Trend
25FOURTH QUARTER 2023 EARNINGS 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 26: Quarterly Trend
26FOURTH QUARTER 2023 EARNINGS 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 27: Quarterly Trend
27FOURTH QUARTER 2023 EARNINGS 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 28: Quarterly Trend
28FOURTH QUARTER 2023 EARNINGS 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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