Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q1 2022 Earnings Presentation
39 slides from Seacoast Banking Corporation Of Florida's earnings presentation, May 24, 2022
Slide 1: First Quarter 2022 Investor Presentation
First Quarter 2022 INVESTOR PRESENTATION 20 22
Slide 2: Forward-looking statements
This presentation contains “forward‐looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, without limitation, statements about future financial and operating results, cost savings, enha
Slide 3: Agenda
AGENDA 01 ABOUT SEACOAST BANK 02 OUTLOOK 03 COMPANY PERFORMANCE 04 APPENDIX
Slide 4: About Seacoast Bank
ABOUT SEACOAST BANK AGENDA 01
Slide 5: Valuable Florida Franchise
5FIRST QUARTER 2022 INVESTOR PRESENTATION • $10.9 billion in assets as of March 31, 2022, operating in the nation’s third‐most populous state • Strong presence in Florida’s most attractive markets ▪ #1 Florida‐based bank in Orlando MSA ▪ #1 market share in Port Saint Lucie MSA ▪ #2 Florida‐based ban
Slide 6: Florida's Economic Growth Continues
6FIRST QUARTER 2022 INVESTOR PRESENTATION Attracted by Florida’s favorable business climate, lower taxes, warmer weather and easy flights to the Northeast, record numbers of individuals and companies have completed or announced plans to relocate operations to Florida. Sources: US Census data; The Fl
Slide 7: M&A Strategy Delivering Consistent Growth and Long-Term Value Creation
2.2 2.3 3.1 3.5 4.7 5.8 6.7 7.1 8.3 10.3 13.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Pro Forma Total Shareholder Returns PROVEN TRACK RECORD OF SUCCESSFUL AND VALUE ‐ADDED I NTEGRAT IONS M&A Strategy Delivering Consistent Growth and Long‐Term Value Creation 7 As se ts ($ B ) 1 2 1. Acquis
Slide 8: Meeting the $10 Billion Asset Threshold Challenge
Meeting the $10 Billion Asset Threshold Challenge WELL ‐PREPARED TO CROSS $10 B I L L ION AND HAVE OFFSET I NCREMENTAL COSTS THROUGH ACQU I S I T IONS Crossing $10 Billion Asset Threshold Seacoast estimates that the aggregate after‐tax cost of crossing $10 billion in 2023will be ~$7.6million: – ~$4.
Slide 9: Acquisition Opportunities Remain Across Florida
Stratification of Florida Headquartered Banks 1 Total Asset Parameters Number of Institutions Assets ($B) >$10B 3 $91.4 $5B ‐ $10B 1 $7.8 $1B ‐ $5B 16 $28.0 <$1B 59 $17.2 Acquisition Opportunities Remain Across Florida 1. Source: S&P Global Market Intelligence; represents most recent quarter assets
Slide 10: Outlook
OUTLOOK AGENDA 02
Slide 11: Key Principles to Driving Long-Term Shareholder Value
Primary driver of growth will be strong performance from business units growing organically in robust Florida markets 1 Goal is to deliver profitability and growth to the maximum level while maintaining our conservative risk posture Acquisitions will be evaluated opportunistically when additive to p
Slide 12: Priorities for 2022 and Beyond – Executing Balanced Growth Strategy
Positioned To Be Highly Competitive Post Pandemic • Organic Growth Levers • Focused on outperforming in the Commercial Banking space, leveraging talent and technology • Continuing to evolve Retail Banking by further integrating digital to deliver an outstanding experience for our customers • Executi
Slide 13: Company Performance
COMPANY PERFORMANCE AGENDA 03
Slide 14: First Quarter 2022 Highlights
• Continued strong asset quality trends, with nonperforming loans declining to 0.41% of total loans. $5.1 million of provision build upon closing of two acquisitions. • Strong deposit growth, with organic deposits increasing 25% on an annualized basis. • Building long‐term shareholder value through
Slide 15: Net Interest Income and Margin
Net Interest Income and Margin $65,933 $71,455 $71,455 $72,412 • Net interest income1 totaled $76.6 million, an increase of $4.2 million, or 6%, from the prior quarter. • Net interest margin expanded nine basis points to 3.25% and, excluding the effect of PPP and accretion on acquired loans, net int
Slide 16: Continued Strength in Noninterest Income
Continued Strength in Noninterest Income $2,423 $4,131 $4,135 $2,495 $2,606 $2,562 $2,356 $3,646 $1,949 $812 $2,550 $200 $2,030 $2,332 $113 $5,708 $1,128 Noninterest income declined $3.3 million from the prior quarter to $15.4 million, and adjusted noninterest income1 declined $2.5 million to $15.8
Slide 17: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest expense increased $8.7 million, which includes a $6.2 million increase in merger‐related expenses, and adjusted noninterest expense1 increased $2.4 million sequentially. Changes quarter‐over‐quarter on an adjusted basis include: • Salaries a
Slide 18: Efficiency Ratio Trend
Efficiency Ratio Trend • The efficiency ratio was 62.3% for the first quarter of 2022 compared to 53.7% in the prior quarter and 53.2% in the first quarter of 2021. Increases in the first quarter of 2022 reflect higher expenses from the acquisitions of BBFC and Sabal Palm. • The adjusted efficiency
Slide 19: Building Florida's Leading Commercial Bank
19FIRST QUARTER 2022 INVESTOR PRESENTATION Building Florida’s Leading Commercial Bank Ron York joins as Treasury Management Executive Previously with First Horizon Chris Rolle joins as West FL Regional Market President, formerly Director of Middle Market Banking at Synovus and Central FL Market Pres
Slide 20: Lending Strategy Produced and Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio The Company remains focused and committed to its strict credit underwriting standards. Construction and land development and commercial real estate loans, as defined in regulatory guidance, represent 20% and 172%, respectivel
Slide 21: Disciplined Approach to Lending in an Expanding Florida Economy
Disciplined Approach to Lending in an Expanding Florida Economy Loans outstanding, excluding PPP and excluding the impact of acquired banks and purchases, increased $104 million, or 7% annualized. Total loan originations were $678.7 million, and the commercial pipeline increased 56% to a record $619
Slide 22: Loan Production and Pipeline Trend
22FIRST QUARTER 2022 INVESTOR PRESENTATION Loan Production and Pipeline Trend
Slide 23: Investment Securities Performance and Composition
Investment Securities Performance and Composition • Portfolio yield increased 11 basis points to 1.68% from 1.57% in the prior quarter. • AFS securities ended the quarter with a net unrealized loss of $95.9 million compared to an unrealized loss of $9.3 million at December 31, 2021, largely due to t
Slide 24: Strong Liquidity Position Available to Leverage at Higher Rates
24FIRST QUARTER 2022 INVESTOR PRESENTATION Strong Liquidity Position Available to Leverage at Higher Rates
Slide 25: Low Historical Deposit Beta Coupled with Favorable Deposit Composition
25FIRST QUARTER 2022 INVESTOR PRESENTATION Low Historical Deposit Beta Coupled with Favorable Deposit Composition 1Beta is calculated as the change in deposit costs divided by the change in Fed Funds Rate Total 3Q15 to 2Q19 Deposit Beta1 equal to 28% Favorable deposit composition compared to prior s
Slide 26: Strong Deposit Franchise Supported by Attractive Markets
62% Strong Deposit Franchise Supported by Attractive Markets Continued focus on organic growth and relationship‐ based funding, in combination with our innovative analytics platform, supports a well‐diversified, low‐cost deposit portfolio. Total deposits increased $1.2 billion quarter‐over‐ quarter.
Slide 27: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets under management totaled $1.2 billion at March 31, 2022, increasing 20% from March 31, 2021. This is a result of the wealth management team’s continuing success at winning business with commercial relationships and high net worth families across
Slide 28: Successful Online and Mobile Upgrade
28FIRST QUARTER 2022 INVESTOR PRESENTATION Successful Online and Mobile Upgrade Deliver an Improved Customer Experience Seacoast Bank successfully upgraded its online and mobile banking platform in Q1 for consumers, small businesses, and commercial customers. New features and functionality enabled b
Slide 29: Allowance for Credit Losses and Purchase Discount
The acquisitions of Sabal Palm Bank and Florida Business Bank resulted in an initial provision for credit losses of $5.1 million impacting the first quarter 2022. Allowance for Credit Losses and Purchase Discount 29FIRST QUARTER 2022 INVESTOR PRESENTATION The total allowance for credit losses of $89
Slide 30: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends 30FIRST QUARTER 2022 INVESTOR PRESENTATION ($ in thousands) Allowance for Credit Losses Criticized Loans as a % of Risk‐Based Capital
Slide 31: Strong Capital Supporting a Fortress Balance Sheet
Strong Capital Supporting a Fortress Balance Sheet 31FIRST QUARTER 2022 INVESTOR PRESENTATION 1Non‐GAAP measure, see “Explanation of Certain Unaudited Non‐GAAP Financial Measures" for more information and a reconciliation to GAAP. 2FDICIA defines well capitalized as 10.0% for total risk based capita
Slide 32: Long Term Growth in Shareholder Value
Long Term Growth in Shareholder Value 32FIRST QUARTER 2022 INVESTOR PRESENTATION • The decline in tangible book value per share during the first quarter of 2022 was primarily attributed to the decrease in fair value of debt securities driven by the change in the rate environment. Excluding the decre
Slide 33: Investor Relations – Thank You
I N V E S TO R R E L AT I O N S www. S e a c o a s t B a n k i n g . c om N A S DAQ : S B C F Seacoast Banking Corporation of Florida THANK YOU. TRAC E Y L . D E X T E R E x e c u t i v e V i c e P r e s i d e n t C h i e f F i n a n c i a l O f f i c e r ( 7 7 2 ) 4 0 3 ‐ 0 4 6 1
Slide 34: Appendix
APPENDIX AGENDA 04
Slide 35: Explanation of Certain Unaudited Non-GAAP Financial Measures
Explanation of Certain Unaudited Non‐GAAP Financial Measures 35FIRST QUARTER 2022 INVESTOR PRESENTATION This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP a
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non‐GAAP Reconciliation 36FIRST QUARTER 2022 INVESTOR PRESENTATION Quarterly Trend Twelve Months Ended
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non‐GAAP Reconciliation 37FIRST QUARTER 2022 INVESTOR PRESENTATION
Slide 38: GAAP to Non-GAAP Reconciliation
GAAP to Non‐GAAP Reconciliation 38FIRST QUARTER 2022 INVESTOR PRESENTATION
Slide 39: GAAP to Non-GAAP Reconciliation
39FIRST QUARTER 2022 INVESTOR PRESENTATION GAAP to Non‐GAAP Reconciliation
Seacoast Banking Corp of Florida — Q1 2022 Earnings Presentation on 6ix