Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Investor Day (February 2019)
125 slides from Seacoast Banking Corporation Of Florida's investor day presentation, Feb 13, 2019
Slide 1: Investor Day 2019
Investor Day 2019 February 13, 2019
Slide 2: Forward-looking statements
2 INVESTOR DAY 2019 This presentation contains "forward - looking statements" within the meaning, and protections, 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 re
Slide 3: Agenda
3 INVESTOR DAY 2019 Scaling Commercial Banking 3:15 – 3:45 PM Consumer & Small Business Customer Analytics & Marketing Risk Management Welcome & Introduction 3:45 – 4:15 PM 2:25 – 2:55 PM 2:00 – 2:25 PM 2:55 – 3:15 PM Agenda Financial Outlook 4:15 – 4:40 PM Question & Answer 4:40 – 5:00 PM Cocktails
Slide 4: Key Takeaways From Today's Session
4 INVESTOR DAY 2019 EXPERIENCED TEAM WHOSE COMPENSATION AND EXPECTATIONS ARE ALIGNED WITH SHAREHOLDERS We have a deep and highly talented management team and experienced board that we believe is able to execute our strategy and del iver shareholder value. STRONG PRESENCE IN A HEALTHY FLORIDA MARKET
Slide 5: Seacoast Has a Valuable and Growing Florida Franchise
5 INVESTOR DAY 2019 Benefiting from Balanced Growth Strategy; Attractive Geography; Investments in Customer Analytics and Business Banking; and Strategic Acquisitions Seacoast Has a Valuable and Growing Florida Franchise • $ 6.7 billion in assets as of December 31, 2018, operating in the nation’s th
Slide 6: Seacoast Executes a Differentiated Strategy from Other Community Banks
6 INVESTOR DAY 2019 Experienced Board and Management Team Aligned With Shareholders Well - Positioned to Benefit from Florida Market Advanced Analytical and Digital Capabilities Focused on Controls Comprehensive Organic Growth Model Track Record of Value - Creating Acquisitions Seacoast Executes a D
Slide 7: Seacoast Has Methodically Added Strong Talent And Deeply Experienced Leaders
7 INVESTOR DAY 2019 Mike Sonego Executive Vice President Residential Lending & Wealth Charles Shaffer Chief Financial Officer & Head of Strategy Charles K. Cross Executive Vice President Commercial Banking David Houdeshell Executive Vice President Chief Risk Officer Dan Chappell Executive Vice Presi
Slide 8: Revitalized Board, Aligned with Shareholders
8 INVESTOR DAY 2019 8 Jacqueline Bradley May 2015 2013 2014 2017 2016 Dennis Arczynski Bank Regulations July 2013 Julie Daum Governance & Talent October 2013 Maryann Goebel Technology February 2014 Jacqueline Bradley Wealth Management May 2015 Timothy Huval HR & Operations July 2016 Herb Lurie Finan
Slide 9: Strategic Architecture
9 INVESTOR DAY 2019 CONTROL CORE INNOVATION Strategic Architecture GROWTH PROFIT MERGERS AND ACQUISITIONS ORGANIC
Slide 10: Customer Centric Model for Profitable Organic Growth
10 INVESTOR DAY 2019 10 WHO WE SERVE BUSINESS Operating Companies CONSUMERS Mass Affluent, Affluent Meeting Customer Needs Profitability Through an Evolving Distribution Network Seacoast Executes a Customer Centric - Model for Profitable Organic Growth
Slide 11: Customer Centric Model for Profitable Organic Growth
11 INVESTOR DAY 2019 11 WHO WE SERVE NEEDS WE MEET BUSINESS Operating Companies CONSUMERS Mass Affluent, Affluent LENDING DEPOSITS WEALTH PAYMENTS Meeting Customer Needs Profitability Through an Evolving Distribution Network Seacoast Executes a Customer Centric - Model for Profitable Organic Growth
Slide 12: Customer Centric Model for Profitable Organic Growth
12 INVESTOR DAY 2019 12 ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES WHO WE SERVE NEEDS WE MEET WE AIM TO BE PRIMARY BUSINESS Operating Companies CONSUMERS Mass Affluent, Affluent LENDING DEPOSITS WEALTH PAYMENTS ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES Meeting Customer Nee
Slide 13: Customer Centric Model for Profitable Organic Growth
13 INVESTOR DAY 2019 13 ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES WHO WE SERVE NEEDS WE MEET WE AIM TO BE PRIMARY BUSINESS Operating Companies CONSUMERS Mass Affluent, Affluent LENDING DEPOSITS WEALTH PAYMENTS DISTRIBUTION NETWORK BRANCH COMMERCIAL BANKING OFFICE DIGITAL ATMs CALL CENT
Slide 14: Florida Is an Attractive Market
14 INVESTOR DAY 2019 14 Florida Is an Attractive Market, with a Healthy Economy, a nd Strong Population Growth Seacoast Customer Map Source: Federal Reserve Data, Florida Trend, Florida Business Journals • Florida GDP surpassed $1 trillion in mid 2018 • Florida GDP ranks fourth nationwide behind Cal
Slide 15: South Florida MSA
15 INVESTOR DAY 2019 15 Seacoast Customer Map • Includes Palm Beach, Broward and Miami Dade counties • 35% of state GDP • Note that SBCF does not actively compete in Miami - Dade • 30% of state population • Population of Broward and Palm Beach represents 17% of state population • Major industries in
Slide 16: Orlando-Kissimmee-Sanford MSA
16 INVESTOR DAY 2019 16 Seacoast Customer Map • Includes Orange, Seminole, Lake and Osceola counties • 14% of state GDP • 12% of state population • Major industries include Aviation/Aerospace, Information Technology, Defense and Homeland, Professional Services and Life Sciences • 27% of Seacoast Dep
Slide 17: Tampa-St Pete-Clearwater MSA
17 INVESTOR DAY 2019 17 Seacoast Customer Map • Includes Hillsborough, Pinellas, Hernando, and Pasco counties • 15% of state GDP • 15% of state population • Major industries include Professional Services, Information Technology, Defense and Homeland, and Financial Services • Multiple companies with
Slide 18: Port St Lucie, Melbourne, Daytona MSAs
18 INVESTOR DAY 2019 18 Seacoast Customer Map • Includes multiple counties spanning from Martin to Volusia along Florida’s east coast • 6 % of state GDP • 9 % of state population • Major industries include Aviation/Aerospace, Defense and Homeland • 42% of Seacoast Deposits, 24% of Loans Port St Luci
Slide 19: Florida Is a Growing Market Served by Dramatically Fewer Banks
19 INVESTOR DAY 2019 Florida Is a Growing Market Served by Dramatically Fewer Banks 50 100 150 200 250 300 $400 $500 $600 $700 $800 $900 $1,000 $1,100 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Florida GDP $ in Billions Number of Florida HQ’s Ba
Slide 20: Seacoast Continues to Benefit from Value-Creating Acquisitions
20 INVESTOR DAY 2019 20 20% average IRR largest Florida headquartered publicly traded bank , up from 6th in 2014 #1 Seacoast Continues to Benefit from Value - Creating Acquisitions GulfShore Bank April 2017 BMO Harris Bank Orlando Operations June 2016 Floridian Financial Group March 2016 Grand Bank
Slide 21: Seacoast's Success Is Driven by Its Winning Culture
21 INVESTOR DAY 2019 84% Seacoast’s Success Is Driven by Its Winning Culture I understand the importance of my role to the success of the organization 93% I would recommend this organization’s products/services to a friend 93% I am willing to give extra effort to help this organization succeed 95% O
Slide 22: Equity Compensation Plan Is Aligned with Shareholder Value Creation
22 INVESTOR DAY 2019 22 Seacoast’s Equity Compensation Plan Is Aligned with Shareholder Value Creation 0% 5% 10% 15% 20% 25% 30% 35% 40% - 50 100 150 200 250 300 350 2015 2016 2017 2018 Employees Granted Awards % of Total Employees 37% of Associate B ase H as Meaningful A wards W ith Vesting Schedul
Slide 23: Execution of Balanced Growth Strategy Has Delivered Strong Growth
23 INVESTOR DAY 2019 $1.04 $1.28 $1.62 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 $1.60 $1.70 2016 2017 2018 1. See appendix for definition of non - GAAP metrics Net Revenue – Adjusted 1 $ Millions $176.6 $219.5 $261.9 $150 $170 $190 $210 $230 $250 $270 2016 2017 2018 Net Income – Adjusted 1 $
Slide 24: And Created Significant Shareholder Value
24 INVESTOR DAY 2019 64.6% 58.7% 56.1% 0% 30% 60% 90% 2016 2017 2018 Full Year Adjusted ROTA 1 Full Year Adjusted ROTCE 1 Full Year Adjusted Efficiency Ratio 1 24 0.94% 1.09% 1.35% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 2016 2017 2018 11.3% 12.2% 14.1% 10% 11% 11% 12% 12% 13% 13% 14% 14% 15% 1
Slide 25: Seacoast Has Outperformed the Major Indices
25 INVESTOR DAY 2019 S&P 500 SBC F KBW Regional Banking Index 5 - year Return 50.3% 26.9% 9.9% 113.3% 0% 25% 50% 75% 100% 125% Seacoast Has Outperformed the Major Indices… Source: Bloomberg Note: Market data as of 12/31/2013 - 12/31/2018 (1) Peers includes CSFL, RNST, HOMB, ABCB, IBKC, OZK Southeast
Slide 26: And Is Recognized as a Top Performer
26 INVESTOR DAY 2019 26 2018 Seacoast Bank : #26 out of 100 Highest Ranked Bank on The L ist Based on Three - Year EPS, Net Income, Revenue and Total Return Source: http ://fortune.com/100 - fastest - growing - companies/ … And I s Recognized as a Top Performer
Slide 27: Strategy To Sustain Value Creation Post 2020
27 INVESTOR DAY 2019 27 Advance Our Culture To Ensure Consistent Execution Capitalize on Business Banking Opportunities Continue to Evolve Our Operating Model to Drive Efficiency Leverage Our Analytics Capabilities To Expand Customer Relationships Complete Disciplined, Accretive Acquisitions That Ex
Slide 28: Strategic Architecture
28 INVESTOR DAY 2019 CONTROL CORE INNOVATION Strategic Architecture GROWTH PROFIT MERGERS AND ACQUISITIONS ORGANIC
Slide 29: Appendix: GAAP to Non-GAAP Reconciliation
29 INVESTOR DAY 2019 Appendix: GAAP to Non - GAAP Reconciliation 29 Quarterly Trend Twelve Months Ended December 31, (Dollars in thousands except per share data) 4Q'18 3Q'18 2Q'18 1Q'18 4Q'17 2018 2017 Net income (loss) $ 15,962 $ 16,322 $ 16,964 $ 18,027 $ 13,047 $ 67,275 $ 42,865 Gain on sale of V
Slide 30: Appendix: GAAP to Non-GAAP Reconciliation
30 INVESTOR DAY 2019 Appendix: GAAP to Non - GAAP Reconciliation 30 Quarterly Trend Twelve Months Ended December 31, (Dollars in thousands except per share data) 4Q'18 3Q'18 2Q'18 1Q'18 4Q'17 2018 2017 Adjusted Revenue $ 72,843 $ 63,901 $ 62,976 $ 62,160 $ 59,603 $ 261,880 $ 219,526 Impact of FTE ad
Slide 31: Risk Management
31 INVESTOR DAY 2019 Risk Management Presented by: David Houdeshell INVESTOR DAY | RISK MANAGEMENT
Slide 32: Risk Management at Seacoast
32 INVESTOR DAY 2019 Risk Management at Seacoast A CORE COMPETENCY • Risk management practices are woven throughout the company to serve customers and create value for shareholders CREDIT RISK IS DISCIPLINED • Building a high - quality lending portfolio to outperform through business cycles • Lower
Slide 33: The Management of Risk Is Foundational to Seacoast's Success
33 INVESTOR DAY 2019 The Management of Risk Is Foundational to Seacoast’s Success TONE AT THE TOP The Board approves risk strategies, policies and parameters, and receives regular updates on the key risks. RISK AWARE , NOT RISK AVOIDANCE Active participation throughout the bank in risk management pr
Slide 34: Seacoast Manages Risk Through Disciplined Programs and Practice
34 INVESTOR DAY 2019 BUSINESS CONTINUITY PROGRAMS CREDIT RISKS CYBER RISKS ALCO, MARKET & INTEREST RATE RISKS REGULATORY COMPLIANCE OPERATIONAL RISKS FINANCIAL CRIMES & FRAUD RISKS CAPITAL PLANS & STRESS TESTS VENDOR, THIRD - PARTY RISKS Seacoast Manages Risk Through Disciplined Programs and Practic
Slide 35: Well Defined Credit Philosophy
35 INVESTOR DAY 2019 Seacoast Has a Well Defined Credit Philosophy ORGANICALLY GROW CUSTOMERS AND LOANS • Only accept risks consistent with our strategy and within our capability to manage • Underwriting is moderate - to - conservative • 2x weekly preflight meetings to quickly focus on strong lendin
Slide 36: Disciplined Credit Culture Focused on Six Key Tenets
36 INVESTOR DAY 2019 INGRAINED DIVERSIFIED • Focus on consumers and businesses with revenue under $50 million • Granular and borrower quality targeted in lower PD strata • House limits substantially lower than Legal Lending Limit ASSURED 5 6 4 MEASURED SKILLED • Continuously recruiting high quality
Slide 37: Building an Intentional Portfolio
37 INVESTOR DAY 2019 EXPAND GROW SELECTIVE CAUTION AVOID Guardrails , Analytics and Credit Culture Playbook Guide E xecution T oward B uilding an Intentional P ortfolio Medical Accounting Engineering Homeowner Associations Retail w/ credit tenants Healthcare Clinics & Labs Veterinarians Home Mainten
Slide 38: Granularity & Lack of Concentration Are Hallmarks of the Portfolio
38 INVESTOR DAY 2019 Granularity & Lack of Concentration Are Hallmarks of the Seacoast Portfolio 12.5% 9.5% 9.2% 8.7% 6.7% 5.5% 6.6% 4.7% 3.8% $- $500 $1,000 0% 2% 4% 6% 8% 10% 12% 14% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Thousands Largest Relationship as % of Capital Avg C
Slide 39: Disciplined Portfolio Management Continues to Deliver Sound Mix
39 INVESTOR DAY 2019 Disciplined Portfolio Management Continues to Deliver Sound Mix $ 2,156 $ 2,880 $ 4,825 $ 3,817 29% 29% 26% 28% 30% 26% 26% 28% 21% 21% 21% 20% 10% 12% 15% 14% 5% 6% 6% 5% 5% 6% 6% 5% 2015 2016 2017 2018 Consumer HELOC C&I OOCRE Residential CRE Focus on C&I built mix from 10% to
Slide 40: Commercial Real Estate Exposure Is Moderate
40 INVESTOR DAY 2019 DOWNLOADS CRE and AD&C ratios remain well below regulatory limit s Commercial Real Estate Exposure Is Moderate and Well Below Regulatory Thresholds 1 1. Acquisition, Development and Construction (AD&C) is defined as loans used for construction, land development and land acquisit
Slide 41: AD&C Is a Small Part of the Portfolio
41 INVESTOR DAY 2019 DOWNLOADS Land Acquisition, Development & Construction (AD&C) Is a Small Part of Seacoast’s Portfolio, and Is Tightly Managed 1 - 4 Family Residential Construction 60% Commercial Construction 21% Developed Lots 9% Undeveloped Lots 10% Commercial Real Estate 24% Acquisition, Deve
Slide 42: Portfolio Is Operating at Healthy Levels
42 INVESTOR DAY 2019 DESIGN DELIVERY PRESENTATION Seacoast’s Portfolio Is Operating at Healthy Levels 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 4Q17 1Q18 2Q18 3Q18 4Q 18 Past Due to Total Loans 30-89 Days Past Due 90+ Days Past Due 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 4Q17 1Q18 2Q18 3Q18 4Q18 Classifi
Slide 43: Model Is Built to Perform Through Business Cycles
43 INVESTOR DAY 2019 SELECTIVE on new construction projects (Residential and Commercial ) Requiring more pre - sales and pre - leasing requirements on construction Seacoast’s Model Is Built to P erform Through Business Cycles AVOID lending on HIGH RISK industries Increasing borrower equity requireme
Slide 44: Seacoast Continues to Strengthen Risk Analytics
44 INVESTOR DAY 2019 VALUE CREATION INVESTMENTS • Origination and pricing strategy • Dynamic risk grading migration quarterly • Portfolio management • Collection strategies • Develop loss forecasting models for budget and strategic management • Acquisitions/portfolio sales • Capital management • CEC
Slide 45: Risk Analytics as a Differentiator
45 INVESTOR DAY 2019 FRAUD RISK Risk analytics reduce online bill pay fraud while providing greater limits for bill pay customers PREVENTION We aim to take action before problems arise, reducing operational losses and surprises REWARDS Changes increased net portfolio margins by 30 - 40 basis points
Slide 46: Risk Aware Decision Making Creates Value
46 INVESTOR DAY 2019 INCREMENTAL INTERCHANGE REVENUE Loss/Gain from Risk - Aware Decision - Making Risk Aware Decision Making Creates Value • Applying analytics methods, Operational Risk balances opportunities with prudent risk management to inform risk - aware decisions • Risk analytics rebalances
Slide 47: Committed to Maintaining a Secure, Safe Environment
47 INVESTOR DAY 2019 Seacoast Is Committed to Maintaining a Secure, Safe Environment • Continuous threat landscape evaluation employing industry leading threat intelligence • A.I . and machine learning leveraged to detect and eradicate today's modern threats • D ifferentiated and innovative security
Slide 48: Risk Management at Seacoast
48 INVESTOR DAY 2019 Risk Management at Seacoast A CORE COMPETENCY • Risk management practices are woven throughout the company to serve customers and create value for shareholders CREDIT RISK IS DISCIPLINED • Building a high - quality lending portfolio to outperform through business cycles • Lower
Slide 49: Customer Analytics and Marketing to Maximize Value
49 INVESTOR DAY 2019 The picture can't be displayed. Customer Analytics and Marketing to Maximize Value Presented by Jeff Lee
Slide 50: Aim Is to Be Customers' Primary Bank
50 INVESTOR DAY 2019 50 ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICES WHO WE SERVE NEEDS WE MEET WE AIM TO BE PRIMARY BUSINESS C&I Focus CONSUMERS Mass Affluent, Affluent LENDING DEPOSITS WEALTH PAYMENTS The picture can't be displayed. ACQUIRE CUSTOMERS DEEPEN RELATIONSHIPS BROADEN SERVICE
Slide 51: Model for Understanding and Managing Existing Customers
51 INVESTOR DAY 2019 Seacoast’s Model for Understanding and Managing Existing Customers Powers Its Growth Engine… …With Value Created from Three Distinct Areas Strategy Helps Focus Analytics, Which Drives Execution… The picture can't be displayed. The picture can't be displayed. The picture can't be
Slide 52: Approach to Customer Analytics Is a Unique Advantage
52 INVESTOR DAY 2019 …And Its Approach to Customer Analytics Is a Unique Advantage UNIFIED, HOLISTIC VIEW OF EACH CUSTOMER • In - house analytical dataset of 27,000+ columns per customer • Derived information such as Customer Contribution, Engagement Levels and Channel Preferences • Over 20,000 line
Slide 53: Unique Approach to Growing Customer Value
53 INVESTOR DAY 2019 v XXXXXXX 53 Unique Approach to Growing Customer Value Patent Pending Unlike Other Community Banks, Seacoast Uses its Vast Data Set and Machine Learning to Drive Value Creation A single view of the customer + Extensive use of advanced analytics + Three machine learning (1) model
Slide 54: Targeted, Multi-Channel Marketing Campaign
54 INVESTOR DAY 2019 Example of a Targeted, Multi - Channel Marketing Campaign LOC usage campaign – delivered to eligible customers across multiple touchpoints Analytic models identify customers who have a LOC they are not using, triggering automated marketing campaign 54 The picture can't be displa
Slide 55: Incremental Results: Consumer Loans
55 INVESTOR DAY 2019 XXXXXXX 55 Seacoast’s Model Is Driving Incremental Results from Current Customers: No.1 – Consumer Loans Incremental growth among customers with over 6 months tenure 1 Assumes loan spread is 3.5%, average life is 3.83 years, and NPV hurdle rate is 15% • 126% increase in loan pro
Slide 56: Incremental Results: Consumer Deposits
Seacoast’s Model Is Driving Incremental Results from Current Customers. No. 2 — Consumer Deposits “TEARS. Incremental growth among customers with over 6 months tenure Consumer Deposits — New Deposit Dollars Per Tenured Customer Outcomes * 78% increase in deposit production effectiveness * Leverages
Slide 57: Incremental Results: Small Business Loans
Seacoast’s Model Is Driving Incremental Results from Current Customers. No. 3 — Small Business Loans “TEARS. Incremental growth among customers with over 6 months tenure Small Business Loans — New Loan Dollars Per Tenured Customer Outcomes | \ * 700% increase in loan production | | | effectiveness {
Slide 58: Incremental Results: Small Business Deposits
Seacoast’s Model Is Driving Incremental Results “TEARS. from Current Customers. No. 4— Small Business Deposits Incremental growth among customers with over 6 months tenure Small Business Deposits — New Deposit Dollars Per Tenured Customer | | \ Pow TV whet VY LY Sotho yy Y Bg > ft ee Se DS SD SP aan
Slide 59: Incremental Results: Debit Interchange Fees
Seacoast’s Model Is Driving Incremental Results from Current Customers. No. 5 — Debit Interchange Fees “TEARS. Incremental growth in average monthly spend per customer Monthly Debit Card Spend Per Primary Checking Customer Outcomes * 14% increase in average monthly retail sales per customer * Levera
Slide 60: Customers Value Seacoast's Advice and Take Action
Customers Value Seacoast’s Advice and Take Action le Seacoast g 80% s s S i National Bank SB 70% | National Bank @ & e @ National Bank 3 Regional Bank e 3 ra National Bank 60% 3 Reelonel Bale National Bank & Florida Bank 3g e e 2 50% e Regional Bank — Regional Bank c National Bank National Bank e0@e
Slide 61: Single View of the Customer: Value Creation
61 INVESTOR DAY 2019 61 With a Single View of the Customer, Seacoast Has Greater Insight into Value Creation Than Its Peers A Few Examples of Opportunities within the Existing Customer Base Size of Audience Simulated Opportunity Increasing Deposits from existing customers Number of current customers
Slide 62: Single View of the Customer: Value Creation
62 INVESTOR DAY 2019 62 With a Single View of the Customer, Seacoast Has Greater Insight into Value Creation Than Its Peers A Few Examples of Opportunities within the Existing Customer Base Size of Audience Simulated Opportunity Increasing Deposits from existing customers Number of current customers
Slide 63: Single View of the Customer: Value Creation
63 INVESTOR DAY 2019 63 With a Single View of the Customer, Seacoast Has Greater Insight into Value Creation Than Its Peers A Few Examples of Opportunities within the Existing Customer Base Size of Audience Simulated Opportunity Increasing Deposits from existing customers Number of current customers
Slide 64: Single View of the Customer: Value Creation
64 INVESTOR DAY 2019 64 With a Single View of the Customer, Seacoast Has Greater Insight into Value Creation Than Its Peers A Few Examples of Opportunities within the Existing Customer Base Size of Audience Simulated Opportunity Increasing Deposits from existing customers Number of current customers
Slide 65: Continue to Develop a Prospect Marketing Competency
Seacoast Will Continue to Develop a Prospect Marketing Competency 2] to Complement Its Field Sales Force Campaign Contribution Net of Control Campaigns Customized To Valuable Prospects, With Multiple Campaigns Each Year Rigorous Measurement and Tracking at an Individual Customer Level Enables Seacoa
Slide 66: Model for Understanding and Managing Existing Customers
66 INVESTOR DAY 2019 Seacoast’s Model for Understanding and Managing Existing Customers Powers Its Growth Engine …With Value Created from Three Distinct Areas Strategy Helps Focus Analytics, Which Drives Execution… The picture can't be displayed. The picture can't be displayed. The picture can't be
Slide 67: Consumer & Small Business
67 INVESTOR DAY 2019 Consumer & Small Business Presented by Julie Kleffel
Slide 68: Powering the Seacoast Growth Engine
68 INVESTOR DAY 2019 POWERING THE SEACOAST GROWTH ENGINE Executing our strategy has delivered robust results and efficiencies WITH A STRATEGY FOR SUSTAINED GROWTH INTO THE FUTURE We have a tested and winning strategy • We’re focused on acquiring the right customers by: - Targeted expansion into attr
Slide 69: A Key Element of Seacoast's Balanced Growth Story
69 INVESTOR DAY 2019 Source of low cost deposits Source of recurring fee revenue Strategically important to support our continued focus on having a granular, well diversified portfolio Important for capturing the broader relationships of the customers we seek to serve 1 2 3 4 5 Also, provides an ent
Slide 70: Consumer & Small Business Banking Overview
70 INVESTOR DAY 2019 46% 69% % OF LOAN PORTFOLIO % OF CUSTOMER CONTRIBUTION Consumer & Small Business Banking Overview $4.3B 196K DEPOSITS CUSTOMERS Customer contribution is comprised of customer revenue less variable cost to serve (Seacoast proprietary data)
Slide 71: Executing Our Strategy Has Delivered Robust Results
71 INVESTOR DAY 2019 MORTGAGE ORIGINATIONS Intentional shift to deliver greater risk adjusted returns going into 2019 CONSUMER & SMALL BUSINESS LOAN ORIGINATIONS Close to $100 million growth in originations $302 $354 $443 2016 2017 2018 $ Millions Executing Our Strategy Has Delivered Robust Results
Slide 72: Executing Our Strategy Has Delivered Robust Results
72 INVESTOR DAY 2019 LOAN PORTFOLIO The Consumer, Small Business, & Mortgage loan book has increased by 64% since 2016 CUSTOMER CONTRIBUTION Contribution has increased by over $30 million $75 $88 $108 2016 2017 2018 $ Millions Executing Our Strategy Has Delivered Robust Results $1,384 $1,727 $2,276
Slide 73: Executing Our Strategy Has Produced Efficiencies
73 INVESTOR DAY 2019 REVENUE PER ASSOCIATE - Empowered Associates - Attracting The Right Talent DEPOSITS PER BRANCH - Digital migration continues to drive branch efficiency - 36% growth since 2016 $75 $90 $102 2016 2017 2018 $ Millions Executing Our Strategy Has Produced Efficiencies $262 $293 $342
Slide 74: A Tested and Winning Strategy
74 INVESTOR DAY 2019 LOWER THE COST TO SERVE Adoption of Lower Cost Servicing Channels – Mobile, ATM, Online Branch Rationalization Given Digital Adoption & Streamlined Operations DEEPEN RELATIONSHIPS WITH EXISTING CUSTOMERS Cross Sell Opportunities Inside & Outside of Branch Product Structures Ince
Slide 75: A Proven Approach to Customer Acquisition
75 INVESTOR DAY 2019 LEVERAGE SEACOAST VALUE PROPOSITION TARGET THE RIGHT PROSPECTS Target Marke ts Buy Box Behavioral Insights Florida Expertise & Brand Recognition Competitive & Comprehensive Product Set PROMOTE CONSISTENTLY + + Enhanced Convenience & Accessibility EFFECTIVE CUSTOMER ACQUISITION A
Slide 76: The Consumer Model Is Working
76 INVESTOR DAY 2019 56% 24% 20% MASS AFFLUENT Increase from 2015 to 2018 +13 % AFFLUENT Increase from 2015 to 2018 +10 % 51% 27% 22% ACQUIRE 2015 2018 The Consumer Model Is Working a nd Building on More Than 90 Years of Value… MASS AFFLUENT MASS MARKET AFFLUENT
Slide 77: Significant Opportunity to Deepen Relationships
77 INVESTOR DAY 2019 Significant Opportunity to Deepen Relationships… Median Value of Customer Today Median CLTV: Consumer & Small Business The Potential Value of Having the Total Relationship 75 th Percentile CLTV: Consumer & Small Business DEEPEN DEEPENING RELATIONSHIPS ENHANCES CLTV, CUSTOMER SAT
Slide 78: Deep Customer Insights Through Proprietary Software
78 INVESTOR DAY 2019 And We’re Capitalizing on the Opportunity Through Deep Customer Insights Delivered Through Our Proprietary Software CUSTOMER RELATIONSHIP Bankers have a full view of products & services as well as contact history OPPORTUNITY MANAGMENT Consumer analytics & customer insights drive
Slide 79: Seacoast Connections Video Demonstration
79 INVESTOR DAY 2019 Seacoast Connections Video Demonstration DEEPEN
Slide 80: Deep Customer Insights Through Proprietary Software
80 INVESTOR DAY 2019 And We’re Capitalizing on the Opportunity Through Deep Customer Insights Delivered Through O ur Proprietary Software BANKING CENTER KPI’S Manage opportunity conversation at the banking center level PERFORMANCE INSIGHTS Associate level performance insights drive coaching conversa
Slide 81: Deepening Customer Relationships Creates Value
81 INVESTOR DAY 2019 Deepening Customer Relationships Creates Value 50,000 70,000 90,000 110,000 130,000 150,000 170,000 190,000 210,000 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 $65.00 Jan-16 Jan-17 Jan-18 Contribution Per Customer Customers Customer Base Growth 30% Customer Contribution Growth 45%
Slide 82: Integrated Delivery Model Serves Customer Preferences
82 INVESTOR DAY 2019 Ages 18 to 29 Ages 30 to 44 Ages 45 to 60 Ages 60 and over I prefer in-person interactions with my bank I bank digitally, but prefer some matters be handled in-person I prefer digital interactions - branches should not be necessary LOWER COST Convenient Branch Locations Online B
Slide 83: Digital Servicing Enables Migration to Low-Cost Channels
83 INVESTOR DAY 2019 VISION 2020 VISION 2020 Digital Servicing Enables Migration to Low - Cost Channels Consumer Mobile Adoption 37% 41% 45% 2016 2017 2018 ATM | Mobile | RDC Deposits Teller Transactions per Customer 16.1 13.7 12.5 2016 2017 2018 38% 43% 47% 2016 2017 2018 LOWER COST E - Sign 34% 44
Slide 84: Deposits Increased 187% While Branches Increased 50%
84 INVESTOR DAY 2019 As of YE 2018, Deposits Increased 187% While Branches Increased Only 50% Since YE 2013 As a Result, Seacoast Is Growing While Rationalizing Branches $1,806 $2,417 $2,844 $3,523 $4,593 $53 $56 $66 $75 $90 $102 $40 $50 $60 $70 $80 $90 $100 $110 $0 $500 $1,000 $1,500 $2,000 $2,500
Slide 85: Balanced Growth in Key Markets
85 INVESTOR DAY 2019 REPEAT Balanced Growth in Key Markets 2013 Customer Footprint 2018 Customer Footprint Orlando Tampa/St Pete Palm Beach 2019 & Beyond Mass (teal) Mass Affluent (orange) Affluent (green) Attractive Florida MSA’s SMART GROWTH IN DESIRABLE FLORIDA MSA’S FUTURE FOCUS MARKETS
Slide 86: Small Business Is Just Getting Started
86 INVESTOR DAY 2019 And Small Business Is Just Getting Started… ADDRESSABLE MARKET 1 2 3 4 5 Focused on businesses with revenues less than $ 5 million in attractive industry verticals Utilizes the retail network , with Calling Officers assigned to specific regions SUBSTANTIAL UPSIDE IN THE SMALL BU
Slide 87: Wealth Management Represents a Significant Opportunity
87 INVESTOR DAY 2019 $ Millions OPTIMIZED THE TEAM Expanded the team across the footprint and across the state of Florida. Wealth Management Represents a Significant Opportunity DROVE MATERIAL GROWTH $513MM in total fee based assets under management, drove $5.9MM of total revenue. BUILT THE BUSINESS
Slide 88: Well-Positioned to Continue Balanced Growth Strategy
88 INVESTOR DAY 2019 Expanded Analytical & Digital Capabilities Comprehensive Customer Servicing Model Focused Controls Refined Strategy Value Creating Acquisitions Favorable Florida Market Conditions Powered by an Engaged Workforce Repeatable Success On track with Vision 2020 Top Tier Results Beyon
Slide 89: Scaling Commercial Banking
89 INVESTOR DAY 2019 Scaling Commercial Banking Presented by Chuck Cross INVESTOR DAY | COMMERCIAL BANKING
Slide 90: Key Takeaways for Commercial Banking
90 INVESTOR DAY 2019 Key Takeaways for Commercial Banking • Commercial Banking is a significant contributor to the Bank. • Executing our strategy has delivered robust results and has produced operating leverage. We’ve accomplished this while maintaining a well - diversified portfolio. • In 2019 and
Slide 91: Commercial Banking Overview
91 INVESTOR DAY 2019 54% 37% 5% 31% % OF LOAN PORTFOLIO % OF LOAN ORIGINATIONS % OF BANK CUSTOMERS % OF CUSTOMER CONTRIBUTION Commercial Banking Overview Customer contribution is comprised of customer revenue less variable cost to serve (Seacoast proprietary data)
Slide 92: Serve Customers Holistically Throughout Their Lifecycle
92 INVESTOR DAY 2019 Seacoast’s Singular Mission: Serve Customers Holistically Throughout Their Lifecycle as Needs Change Start - up Growing Business Mature Business Reinvent Transition Advice & Guidance General Business Expertise Complex Business Expertise Sustain Bringing the whole bank to the cus
Slide 93: Serving Businesses Holistically Increases Profitability
93 INVESTOR DAY 2019 Serving Businesses Holistically Translates to Customer Satisfaction and Increased Profitability The Median Value of a Commercial Bank Customer Today Median CLTV: Commercial customer The Value of Enhancing the Commercial Bank Relationship Upper quartile CLTV: Commercial customer
Slide 94: Segmented Approach to Business Banking
94 INVESTOR DAY 2019 Seacoast Executes a Segmented Approach to Business Banking • Focused on businesses with revenues less than $ 5 million in attractive industry verticals • Utilizes the retail network, with Calling Officers assigned to specific regions • Focused on businesses with revenues $ 5 mil
Slide 95: Evolving Offerings and Delivery Model
95 INVESTOR DAY 2019 Seacoast Continues to Evolve Their Offerings and Delivery Model Expanded Product Offering to Include Factoring and Asset Based Lending Launched Accelerate Commercial Banking with three offices Entered Small Business Banking Expanded into Central Florida & Broward County Markets
Slide 96: Executing Strategy Has Delivered Robust Results
96 INVESTOR DAY 2019 DEPOSITS ATTRIBUTABLE TO COMMERCIAL BANK CUSTOMERS COMMERCIAL LOAN ORIGINATIONS $432 $483 $553 2016 2017 2018 $ Millions Executing Seacoast’s Strategy H as Delivered Robust Results $489 $730 $865 2016 2017 2018 $ Millions LOAN PORTFOLIO $1,496 $2,090 $2,549 2016 2017 2018 $ Mill
Slide 97: Executing Our Strategy Has Produced Efficiencies
97 INVESTOR DAY 2019 ASSETS PER BANKER $ Millions Executing Our Strategy Has Produced Efficiencies $43 $57 $62 2016 2017 2018 $ Millions ASSETS PER OPERATIONS FTE Has grown by 56% since 2016 $86 $133 $134 2016 2017 2018
Slide 98: Maintained a Well-Diversified Portfolio
98 INVESTOR DAY 2019 … As Seacoast Has Maintained a Well - Diversified Portfolio OOCRE & C&I 34% CRE 28% 2018 Seacoast loan originations split evenly between consumers and businesses …Commercial Banking products help Seacoast maintain balanced, well - diversified portfolio OOCRE & C&I 31% CRE 21% Co
Slide 99: Propelled by Our Unique Value Proposition
99 INVESTOR DAY 2019 Propelled by Our Unique Value Proposition Local Banks’ Technology Gap SEACOAST’S DIFFERENTIATED VALUE PROPOSITION Mega Banks’ Shortfall - High cost - to - serve diminishes ability to invest - Widening capabilities gap - Limited product offering - Inconvenient servicing - Unsophi
Slide 100: Top Drivers of Increased Customer Wallet Share
100 INVESTOR DAY 2019 PURCHASE PROCESS • Provides a quick purchase experience • E asy - to - follow and uncomplicated purchase process RELATIONSHIP MANAGER • Teaches valuable things about the business • Communicates the value received in exchange for price • Offers a unique perspective on business f
Slide 101: Customer Purchase Process Today
101 INVESTOR DAY 2019 BUSINESS EVENT CLARIFY NEED EXPLORE OPTIONS CRAFT SOLUTIONS PURCHASE BUSINESS EVENT DISCOVER NEED EXPLORE OPTIONS CRAFT SOLUTIONS PURCHASE Customer Directed Banker Directed TODAY’S Purchase Process and Top Channel Used by Customers Business Owners, Americas OUTDATED, TRADITIONA
Slide 102: Seacoast Is Focused on Three Key Areas
102 INVESTOR DAY 2019 Insights & Analytics Arm Bankers with actionable insights to help their customers achieve their goals. Improve Banker productivity Improve Our Fulfillment Processes Strive to provide an easy - to - follow and uncomplicated purchase process Expand Our Presence Deploy Bankers whe
Slide 103: Commercial Banker Portal Video Demonstration
103 INVESTOR DAY 2019 Seacoast Commercial Banker Portal (RPS) Video Demonstration
Slide 104: Analytics Enhance Ability To Target Qualified Prospects
104 INVESTOR DAY 2019 104 Analytics Enhance Seacoast’s Ability To Target Qualified Prospects Identifying & Engaging Prospects Networked Bankers Lead Generation Content Led Insights Banker Led Insights
Slide 105: More-Efficient Fulfillment and Customer Service Processes
105 INVESTOR DAY 2019 Seacoast’s More - Efficient Fulfillment and Customer Service Processes Also Improve Their Customers ’ Experience SELF SERVE OPTIONS COMPETITIVE EDGE WORKFLOW EFFICIENCIES GAINED TOOLS ENHANCE USER EXPERIENCE - Auto - decisioning and scoring for select products - Automated, real
Slide 106: Attractive Opportunities Exist in Markets Served and Sought
106 INVESTOR DAY 2019 FLORIDA MSAs TARGET MARKET OPPORTUNITY 1 (# of Businesses) # OF BANKERS (Small Business & Commercial ) Miami - Ft. Lauderdale - West Palm Beach 2 150,770 27 Tampa - St. Petersburg - Clearwater 55,120 18 Orlando - Kissimmee - Sanford 45,097 30 Jacksonville & Deltona - Daytona Be
Slide 107: Key Takeaways for Commercial Banking
107 INVESTOR DAY 2019 Key Takeaways for Commercial Banking • Commercial Banking is a significant contributor to the Bank. • Executing our strategy has delivered robust results and has produced operating leverage. We’ve accomplished this while maintaining a well - diversified portfolio. • In 2019 and
Slide 108: Financial Outlook
108 INVESTOR DAY 2019 Financial Outlook Presented by Chuck Shaffer INVESTOR DAY | FINANCIAL OUTLOOK
Slide 109: Key Takeaways
109 INVESTOR DAY 2019 • Seacoast continues to outperform as we scale the franchise, execute the balanced growth strategy, and refine the business model. • Seacoast will remain disciplined in liquidity, credit, interest rate risk, and expense control. • Seacoast is on track to achieve VISION 2020 goa
Slide 110: Company Milestones 2014-2018
110 INVESTOR DAY 2019 2014 2015 2016 2018 2017 Acquired data & analytics talent Built marketing automation and cross sale engine Improved tools and built sales capabilities in our call center Expanded Small Business focus iCat launch increased sales activity and improved execution Migrated to digita
Slide 111: Balanced Growth Strategy Is Driving Strong Earnings Performance
111 INVESTOR DAY 2019 1 See appendix for definition of non - GAAP metrics 111 Our Balanced Growth Strategy Is Driving Strong Earnings Performance $3.1 $3.5 $4.7 $5.8 $6.8 2014 2015 2016 2017 2018 $0.5 $0.5 $0.8 $1.2 $1.3 2014 2015 2016 2017 2018 1 80% 69% 65% 59% 56% 2014 2015 2016 2017 2018 YE Tota
Slide 112: Key Principles to Driving Long-Term Shareholder Value
112 INVESTOR DAY 2019 1 Primary driver of growth will be strong performance from business units growing organically in robust Florida markets 2 Goal is to deliver profitability and growth to the maximum level while maintaining our conservative risk posture 3 Acquisitions will be evaluated opportunis
Slide 113: Disciplined Approach to Risk and Expense Control
113 INVESTOR DAY 2019 Seacoast Has a Disciplined Approach to Risk and Expense Control Expense Control Goal to achieve an efficiency ratio below 50% exiting 2020 Focused strategy of repositioning overhead to higher yielding transformational activities Credit Risk Credit risk is managed by a credit po
Slide 114: On Track to Achieve Vision 2020 Goals
114 INVESTOR DAY 2019 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 relationships How We Service • We are outpacing our peers in engaging our customers with
Slide 115: Vision 2020 and Capital Allocation
115 INVESTOR DAY 2019 ROTA | 1.30%+ 115 Vision 2020 and Capital Allocation We exited 2018 with: • Adjusted ROTA 1 of 1.49% • Adjusted ROTCE 1 of 15.4% • Adjusted efficiency ratio 1 of 54.2% ROTCE | 16%+ Efficiency Ratio | Below 50 • Our objective is to meet or exceed our Vision 2020 targets • Seacoa
Slide 116: Well Positioned to Outpace on Growth
116 INVESTOR DAY 2019 Drive our customer - centric approach, leveraging the proprietary analytics tools we have developed Press the Accelerator On Analytics Remain disciplined in acquiring select institutions in Orlando, Palm Beach, Broward, Tampa/St. Petersburg, and southwest Florida Expand Busines
Slide 117: Expand Business Banking with Best-In-Class Tools and Bankers
117 INVESTOR DAY 2019 Expand Business Banking with Best - In - Class Tools and Business Bankers TODAY TOMORROW - Continue refinement of our c ommercial portal providing b ankers with quality l eads & customer e xpansion o pportunities - Install and launch digital origination platform - Install and l
Slide 118: Single View of the Customer: Value Creation
118 INVESTOR DAY 2019 11 8 With a Single View of the Customer, Seacoast Has Greater Insight into Value Creation Than Its Peers A Few Examples of Opportunities within the Existing Customer Base Size of Audience Simulated Opportunity Increasing Deposits from existing customers Number of current custom
Slide 119: Positioned in One of the Fastest Growing Economies
119 INVESTOR DAY 2019 We Are Well - Positioned in One of the Fastest Growing Economies in the World Seacoast Customer Map Source: Federal Reserve Data, Florida Trend, Florida Business Journals • Florida GDP surpassed $1 trillion in mid 2018 • Florida GDP ranks fourth nationwide behind California, Te
Slide 120: 2019 Outlook and Priorities
120 INVESTOR DAY 2019 2019 Outlook • Loan growth in the high single digits • Deposit growth target of 6 % • Continue to drive risk adjusted spreads on lending • Maintain our conservative credit quality profile • Continue focus on building noninterest income as a percentage of overall revenue • Exit
Slide 121: 2020 and 2021+ Outlook and Priorities
121 INVESTOR DAY 2019 2020 Outlook • Achieve Vision 2020 Goals • Continue focus on building noninterest income as a percentage of revenue • Accelerate fulfillment in commercial banking with new origination tools, and leverage the proprietary commercial portal to exploit relationship expansion • Acce
Slide 122: Key Takeaways from Today
122 INVESTOR DAY 2019 Key Takeaways from Today…. Risk and Control: • The company is well - controlled , and our Management and Board demand a disciplined approach to growth. We have made the necessary investments to manage risk at an enterprise level. We will continue to make investments in talent a
Slide 123: Strategy to Sustain Value Creation Post 2020
123 INVESTOR DAY 2019 Advance Our Culture To Ensure Consistent Execution Capitalize on Business Banking Opportunities Continue to Evolve Our Operating Model to Drive Efficiency Leverage Our Analytics Capabilities To Expand Customer Relationships Complete Disciplined, Accretive Acquisitions That Expa
Slide 124: Appendix: GAAP to Non-GAAP Reconciliation
124 INVESTOR DAY 2019 Appendix: GAAP to Non - GAAP Reconciliation Quarterly Trend Twelve Months Ended December 31, (Dollars in thousands except per share data) 4Q'18 3Q'18 2Q'18 1Q'18 4Q'17 2018 2017 Net income (loss) $ 15,962 $ 16,322 $ 16,964 $ 18,027 $ 13,047 $ 67,275 $ 42,865 Gain on sale of VIS
Slide 125: Appendix: GAAP to Non-GAAP Reconciliation
125 INVESTOR DAY 2019 Appendix: GAAP to Non - GAAP Reconciliation Quarterly Trend Twelve Months Ended December 31, (Dollars in thousands except per share data) 4Q'18 3Q'18 2Q'18 1Q'18 4Q'17 2018 2017 Adjusted Revenue $ 72,843 $ 63,901 $ 62,976 $ 62,160 $ 59,603 $ 261,880 $ 219,526 Impact of FTE adju
Seacoast Banking Corp of Florida — Investor Day (February 2019) on 6ix