Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Investor Presentation (September 2017)
58 slides from Seacoast Banking Corporation Of Florida's investor presentation, Sep 6, 2017
Slide 1: Investor Presentation Q2 2017
Contact: (email) Chuck.Shaffer@SeacoastBank.com (phone) 772.221.7003 (web) www.SeacoastBanking.com Investor Presentation Q2 - 2017
Slide 2: Forward-looking statements
This presentation contains “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 , including, without limitation, statements about future financial and operating results, ability to realized deferred ta
Slide 3: Agenda
Agenda 3 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 4: 3rd Generation Florida Bank, Attractive Geography
• $5.3 billion in assets operating in the nation’s third most - populous state • Strong and growing presence in three of Florida’s most attractive MSAs ‒ Top 10 bank in Orlando ‒ Growing share in West Palm Beach ‒ #1 share in Port St Lucie MSA, 8 th largest market in Florida ‒ Growing presence in Ta
Slide 5: Seacoast Has Outperformed the Major Indices
Florida Bank Peers (1) 5 Seacoast Has Outperformed the Major Indices… S&P 500 SBC F KBW Regional Banking Index Source: FactSet Note: Market data as of 8/28/2017 (1) Florida Bank Peers includes Florida headquartered banks with greater than $200 m illion and less than $30 billion in market capitalizat
Slide 6: …And is Doing so Prudently
6 …And is Doing so Prudently Source: SNL Financial and Company Filings Note: Commercial Real Estate defined as construction & development loans plus non - owner occupied commercial real estate loans. All peer ratios shown are 2Q17 Seacoast Bank REGULATION 3.0x ROTCE Median 12.5% FCB Finl Hldgs Inc C
Slide 7: Agenda
Agenda 7 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 8: 2Q'17 Highlights
2Q’17 Highlights 1 Our second quarter results highlight our continued success in balancing organic growth with select acquisitions that accelerate our position in key markets. Our performance also underlines our commitment to delivering on our Vision 2020 objectives • Net revenue increased 25% year
Slide 9: Notable Items Affecting Q2 Results
Notable Items Affecting Q2 Results As we continue to scale and invest in achieving our Vision 2020 objectives, certain items, many of which were introduced last quarter, aggregated to $8.2 million in noninterest expense in the second quarter. • GulfShore and other merger and acquisition - related ch
Slide 10: Net Interest Income and Margin
10 $34,801 $37,735 $37,628 $38,377 $44,320 3.63% 3.69% 3.56% 3.63% 3.84% $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Net Interest Income and Net Interest Margin* ($ in thousands) • Net interest income * totaled $44.3 million, up $5.9 million or 15% f
Slide 11: Adjusted Noninterest Income
11 $2,230 $2,698 $2,612 $2,422 $2,435 $2,370 $2,306 $2,334 $2,494 $2,671 $1,308 $1,283 $1,449 $1,257 $1,268 $1,364 $1,885 $1,616 $1,552 $1,272 $1,460 $1,210 $1,300 $1,447 $2,064 $ 382 $611 $733 $757 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 Q2-16 Q3-16 Q4-16 Q
Slide 12: Adjusted Noninterest Expense
12 $15,245 $15,828 $14,799 $16,389 $18,225 $2,698 $3,223 $3,030 $3,267 $3,108 $4,184 $4,418 $4,463 $4,625 $4,750 $6,278 $6,645 $6,562 $6,641 $7,746 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Other Occupancy / Telephone Data Processing Cost Salarie
Slide 13: Efficiency Ratio
13 89.40% 82.80% 104.50% 68.30% 68.60% 76.30% 72.6% 81.7% 78.0% 68.6% 62.4% 71.1% 73.9% 40% 50% 60% 70% 80% 90% 100% 110% GAAP - Efficiency 82.0% 79.6% 74.8% 67.5% 67.5% 68.2% 69.1% 69.6% 64.8% 63.1% 60.8% 64.7% 61.2% 40% 50% 60% 70% 80% 90% 100% 110% Adjusted - Efficiency 1 1 Non - GAAP measure, se
Slide 14: Total Loans Outstanding
14 Total Loans Outstanding (in millions) • Loans grew $714 million or 27% from year - ago levels. Adjusting for acquisitions, loans grew $463 million or 18%. Quarter over quarter, loans grew organically 4%, or $105 million. • Pipelines remain strong, with the commercial pipeline at $146 million, res
Slide 15: Deposit Balances
15 • Total deposits increased 14% from the second quarter of 2016; Transaction accounts represent 56% of total deposits, and have increased 17% year over year. • Cost of deposits remains very attractive at 0.17 %. $1,923 $1,945 $2,022 $2,096 $2,243 $1,192 $1,200 $1,149 $1,185 $1,238 $386 $365 $352 $
Slide 16: Credit Quality
16 Net Charge - offs Nonperforming Loans ALLL $20,725 $22,684 $23,400 $24,562 $26,000 0.99% 0.98% 0.96% 0.95% 0.95% 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 ALLL ALLL Ratio - Non Acquired $662 $550 $1,000 $1,304 $1,401 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Provision Loan Loss Provision $(339) $(1,409) $283 $142 $(37)
Slide 17: Capital Position
Capital Position 17 Tangible Book Value / Book Value Per Share $9.08 $9.35 $9.37 $10.41 $10.55 $11.20 $11.45 $11.45 $12.34 $13.29 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Tangible Book Value Per Share Book Value Per Share 10.6% 12.6% 13.1% 10.7% 11.2% 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Adjusted Return on Tangible C
Slide 18: Agenda
Agenda 18 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 19: Seacoast's Differentiated Strategy
19 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 20: Evolving Distribution Network
DISTRIBUTION NETWORK 20 Meeting Customer Needs Profitably Through an Evolving Distribution Network Strategic Execution Framework BRANCH COMMERCIAL BANKING OFFICE MOBILE ONLINE ATMs CALL CENTER CUSTOMER’S OFFICE Talent, Technology and Analytics ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES
Slide 21: Balanced Growth Strategy Delivering Results Since January 2014
$0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 $3.5 $4.0 $4.5 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 $50 $60 $70 $8
Slide 22: Focus On Business Banking Driving Business Loan Growth
Seacoast’s Focus On Business Banking Is Driving Significant Growth In Business Loans Outstanding • Focused on businesses with revenues $5mm+ in specific industry verticals • Five offices in key metro areas of Florida (three in South Florida, two in Orlando) • Comprehensive relationship approach: bus
Slide 23: Using Data Set to Recognize and Meet Customer Needs
Unlike Other Community Banks, Seacoast Uses its Vast Data Set to Recognize and Meet Customer Needs Automated Offers Inbound Call Outbound Call In Branch Email ATMs Online Banking Direct Mail Mobile Banking 23 Unique Approach to Serving Our Customers ( Patent Pending ) Behavioral Data FIVE CUSTOMER N
Slide 24: Meeting Customer Needs Expands Sales Opportunity
24 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 2013 2014 2015 2016 2017 Original Sales Rate
Slide 25: Meeting Customer Needs Expands Sales Opportunity
25 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) - 3,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 2013 2014 2015 2016 2017 Original Sale
Slide 26: Meeting Customer Needs Expands Sales Opportunity
26 Meeting Customer Needs Vastly Expands Sales Opportunity Deepening Relationships CONSUMER and SMALL BUSINESS LOANS Deepening Relationships DEPOSIT ACCOUNTS Deepening Relationships DEBIT CARDS (Units Sold) 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 24,000 2013 2014 2015 2016
Slide 27: Mobile Adoption Outpaces Peers
Seacoast’s Mobile Adoption Outpaces Both Community Banks and Bigger Banks 27 Investor Presentation 37% 39% 42% 44% 46% 48% 50% 51% 50% 51% 52% 54% 56% 57% 59% 60% 57% 59% 61% 67% 68% 66% 69% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Median
Slide 28: Multi-Channel Servicing Is Key to Our Evolution
28 Half of all routine branch transactions have been shifted to lower cost channels like ATMs and Mobile. This gives Seacoast flexibility as it evolves its distribution network. Multi - Channel Servicing is a Key Component of Our Evolution … And Seacoast is Aggressively Moving Routine Transactions t
Slide 29: Growing While Rationalizing Branches
As a Result, Seacoast is Growing While Rationalizing Branches Seacoast continues to create shareholder value via operating leverage in its branch network. As of 2Q 2017, Deposits Increased 100% While Branches Increased Only 30% since YE 2012 29 $1,759 $1,806 $2,417 $2,844 $3,523 $3,975 $49 $53 $56 $
Slide 30: Seacoast's Differentiated Strategy
30 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 31: Strong Growth Balanced and Not Dependent on CRE Loans
$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 Dec, 2012 Dec, 2013 Dec, 2014 Dec, 2015 Dec, 2016 Jun, 2017 Credit Card Construction Factoring Consumer Marine Other C&I OOCRE Income CRE Residential 31 Strong Growth Has Been Intentionally Balanced and Not Dependent on CRE Loans Loans Outstanding $
Slide 32: Advantages in Credit Risk Management
32 We Have a Number of Advantages Related to Our Approach to Credit Risk Management 1 Strong, skilled, independent underwriting teams that confirm solid, multiple repayment sources 2 Well - defined portfolio limits and elevated credit portfolio management/monitoring 3 Digestible loan sizes and no sy
Slide 33: Seacoast's Differentiated Strategy
33 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 34: Acquisition Strategy Expands Customer Franchise
34 Acquisition Strategy Expands Customer Franchise GulfShore Bank: April 2017 BMO Harris Bank Orlando Operations June 2016 Floridian Financial Group March 2016 Grand Bank July 2015 BankFIRST October 2014 2014 2015 2016 2017 20% a verage IRR 4th largest Florida bank, up from 6th in 2014 #1 Florida he
Slide 35: Seacoast Playbook: Penetrating the Orlando Market
3.9% 21.8% 0% 15% 30% 45% 2013 2016 18.5% 40.3% 0% 15% 30% 45% 2013 2016 6.3% 33.9% 0% 15% 30% 45% 2013 2016 In under two years, Seacoast has become a top - 10 bank in the Orlando market with a 19% IRR for our three acquisitions 35 We Have Proven Our Ability to Grow Acquired Banks by Attracting Hous
Slide 36: In 2013, We Served 7,500 Customers Across Central Florida
36 In 2013, We Served 7,500 Customers Across Central Florida Customer Presence in Central Florida 2013 2013
Slide 37: In 2016, We Served Over 43,000 Customers
37 In 2016, We Served Over 43,000 Customers Across Central Florida - More Than 5X Growth Customer Presence in Central Florida 2013 2016
Slide 38: Replicating the M&A Playbook in Tampa
I - 4 Corridor Pop: 7,128,386 5 5 yr Growth : 8.5%* 38 Replicating the M&A Playbook in Tampa Recent acquisition of GulfShore extends Seacoast into the attractive adjacent Tampa market GulfShore assets, a strong balance sheet and significant built - in growth prospects largest in Florida, 18th larges
Slide 39: Seacoast's Differentiated Strategy
39 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 40: The Florida Market
Southwest Florida Pop: 1,570,228 Pop Growth: 9.6% Treasure Coast/ Palm Beach Co. Pop: 1,956,515 Growth: 7.3% I - 4 Corridor Pop: 7,128,386 Growth: 8.5% *US Census Data Among the top 10 fastest growing states Surpassed New York to become the third largest state in 2014 Florida’s economy accelerating
Slide 41: Rapid Decline in Florida Headquartered Banks
41 Number of Banks Headquartered in Florida per Year Rapid Decline in Florida Headquartered Banks Increases Seacoast’s Scarcity Value Post - Crisis M&A and bank failures pick up steam with no de novo bank creation Source: SNL Financial and FDIC.gov. Note: Includes Commercial Banks, Savings Banks, an
Slide 42: Seacoast's Differentiated Strategy
42 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 43: Strength in Data and Analytics
43 Because of Our Strength In Data And Analytics, We Can Examine: We Know Our Customers’ Profitability and Manage Them Accordingly Customer Potential Low High Current Value High Retain & Engage Retain & Grow Low Manage & Lower Cost to Serve Grow! With this, We Can See the Characteristics and Behavio
Slide 44: Understanding the Path to Value Creation
Median 75th Percentile 44 Opportunity Sizing Engine ( Patent Pending ) Consumer Lifetime Value Small Business Lifetime Value 3x Median 75th Percentile 5x Median 75th Percentile 3x Commercial Lifetime Value Source: Seacoast Proprietary Data Understanding the Path to Value Creation at a Customer Level
Slide 45: Opportunity Sizing Engine
Opportunity Sizing Engine Used to understand precise tactics to generate value for customers and shareholders 45 Bringing Together Marketing Automation, Customer Life Time Value (“CLTV”) and the Opportunity Sizing Engine CLTV Used for understanding the characteristics of value and potential at an in
Slide 46: Seacoast's Differentiated Strategy
46 Experienced Board & Management Team Comprehensive Customer Servicing Model Track Record of Value - Creating Acquisitions Expanding Analytical & Digital Capabilities Well - Positioned to Benefit From Florida Market Focused on Controls Seacoast’s Differentiated Strategy
Slide 47: Revitalized Board Aligned with Balanced Growth Strategy
47 Revitalized Board Aligned with Our Balanced Growth Strategy ADDITIONS Herb Lurie 2016 Jacqueline Bradley May 2015 Maryann Goebel Feb. 2014 Roger Goldman Feb. 2012 Julie Daum October 2013 Dennis Arczynski July 2013 Timothy Huval 2016 2012 2013 2014 2015 2016 2016 Al Monserrat Feb 201 7
Slide 48: We Have Methodically Added Strong Talent in Key Areas
48 We Have Methodically Added Strong Talent in Key Areas Dennis S. Hudson III Chairman & CEO Charles M. Shaffer CFO & Head of Strategy Charles K. Cross Jr. Executive Vice President & Commercial Banking Executive Julie Kleffel Executive Vice President & Community Banking Executive Joe Forlenza Chief
Slide 49: Agenda
Agenda 49 ABOUT SEACOAST BANK 1 COMPANY PERFORMANCE 2 SEACOAST’S DIFFERENTIATED STRATEGY 3 OUTLOOK 4
Slide 50: Our Future Outlook is Based on Four Key Principles
50 Our Future Outlook is Based on Four Key Principles 1 Our primary driver for growth will be strong performance from our business units 2 Our goal is not just to be a 1 % ROA bank, rather it is to continue to drive profitability and growth to the maximum level without increasing our overall risk pr
Slide 51: Vision 2020 Innovation Plan
How We Sell • Continue to develop direct sales channels and offerings based on customer needs and preferences • Simplify processes for our customers and bankers • Reduce our cost to acquire How We Service • We are outpacing our peers in engaging our customers with self - serve options for routine ba
Slide 52: Medium Term Expectation and Vision 2020 Potential
52 Medium Term Expectation Medium Term Expectation Return on Assets 1.20% - 1.30% Return on Tangible Common Equity 14% - 16% Efficiency Ratio Low 50s • Bank valuations are closely correlated with return on tangible common equity and we are focused on driving returns to shareholders • Our momentum, c
Slide 53: Contact Details
Charles M. Shaffer Executive Vice President Chief Financial Officer (772) 221 - 7003 Chuck.Shaffer@seacoastbank.com INVESTOR RELATIONS www.SeacoastBanking.com NASDAQ: SBCF Contact Details: Seacoast Banking Corporation of Florida 53
Slide 54: YEARS
YEARS
Slide 55: Non-GAAP financial information
55 This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”) . The financial highlights provide reconciliations between GAAP net income and adjusted net income, GAAP income and adjusted pretax, preprovision income . Management
Slide 56: GAAP to Non-GAAP Reconciliation
( Q2 16 – Q2 17) 56 GAAP to Non - GAAP Reconciliation (Dollars in thousands except per share data) Second Quarter: 2017 First Quarter: 2017 Fourth Quarter: 2016 Third Quarter: 2016Second Quarter: 2016 Net income (loss) $7,676 $7,926 $10,771 $9,133 $5,332 Boli Income 0 0 0 0 0 Security Gains -21 0 -7
Slide 57: GAAP to Non-GAAP Reconciliation
57 GAAP to Non - GAAP Reconciliation ( Q2 16 – Q2 17) (Dollars in thousands) Second Quarter: 2017 First Quarter: 2017 Fourth Quarter: 2016 Third Quarter: 2016Second Quarter: 2016 Adjusted Revenue 54,623 48,070 47,347 47,212 43,604 Impact of FTE adjustment 164 211 204 287 308 Adjusted Revenue on a fu
Slide 58: Additional information on proposed mergers
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitati on of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale wou ld be unlawful prior to registration o
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