Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q3 2020 Earnings Presentation
33 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Oct 28, 2020
Slide 1: Earnings Presentation Third Quarter 2020 Results
Earnings Presentation THIRD QUARTER 2020 RESULTS Contact: (email) Tracey.Dexter@SeacoastBank.com (phone) 772.403.0461 (web) www.SeacoastBanking.com
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements This press release contains “forward-looking statements” within the meaning, and protections, of by other financial institutions that adversely affect us or the banking industry; our concentration in Section 27A of the Securities Act of 1933 and
Slide 3: Valuable Florida Franchise, Well Positioned with Strong Capital, Liquidity and Disciplined Credit Culture
Valuable Florida Franchise, Well Positioned with Strong Capital, Liquidity and Disciplined Credit Culture Seacoast Customer Map • $8.3 billion in assets as of • Highly disciplined credit portfolio September 30, 2020, operating in the nation’s third-most populous state • Prudent liquidity position •
Slide 4: Seacoast's Integrated Delivery Model Has Enabled The Bank To Effectively Serve Customers Throughout The Pandemic
Seacoast’s Integrated Delivery Model Has Enabled The Bank To Effectively Serve Customers Throughout The Pandemic As a result, we've seen strong momentum in usage of digital tools and other non-branch delivery channels % of consumer deposits % of residential sales completed outside of the 59% branch.
Slide 5: Third Quarter Highlights
Third Quarter Highlights • Earnings per share of $0.42 compared to $0.47. Adjusted earnings per share1 increased to $0.50 from $0.48. • Tangible book value per share increased 12% on an annualized basis. • Net interest margin, excluding the impact of PPP loans and accretion on acquired loans, declin
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin $67,388 $61,027 $61,846 $63,291 $63,621 ($ in thousands) 3.89% 3.84% 3.93% 3.70% 3.42% 3.64% 3.63% 3.66% 3.46% 3.40% 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans • Excluding both accretion on a
Slide 7: Strong Growth and Record Results in Noninterest Income
Strong Growth and Record Results in Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $16,946 $16,942 $15,006 $899 $899 $13,943 $887 $2,616 $13,834 $13,776 $2,612 $928 $252 $928 $887 $252 BOLI $2,503 $3,534 2 BOLI $2,394 $2,304 Other Income $181 $5,
Slide 8: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $51,674 $7,016 $45,432 $42,399 $6,769 $3,018 $40,676 Other Expense 2 $38,582 $5,263 2 Legal & Professional $6,139 Other Expense Legal & Professional $36,911 $5,340 $1,71
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 First Green Palm Beach Bank Freedom Community PBCBBank and Bank and North StarBank NorthStar Bank Acquisitions First Bank of the 66% Palm Beaches Palm Beach Community and 64% North Star Bank Acquisition 62% 59% 60% 58% 58% 57% 58% 57% 5
Slide 10: Disciplined Approach to Lending in an Uncertain Environment
Disciplined Approach to Lending in an Uncertain Environment • Loans outstanding totaled $5.9 billion, an increase of $872 Total Loans Outstanding ($ in millions) million, or 17%, year-over-year. $5,772 $5,858 • New non-PPP loan originations of $338 million in the third $5,198 $5,317 $576 $639 quarte
Slide 11: Seacoast's Lending Strategy Has Produced and Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Has Produced and Sustains a Diverse Loan Portfolio At September 30, 2020 ($ in thousands) Paycheck Acquisition, Protection Development Program & Construction • Construction and land development and commercial $638,800 $280,610 11% 5% real estate loans, as defined in regul
Slide 12: Deferred Loans
Deferred Loans At September 30, 2020 ($ in millions) Deferred Loans Loans Not Deferred 25% 5% $76 18% $345 $205 7% $61 $1,318 $1,050 $921 $9 3% $772 $7 4% $271 $185 Acquisition, Owner Occupied Commercial Residential Commercial Consumer Development Commercial Real Estate Real Estate Real Estate & Fin
Slide 13: Deferred Loans: Upcoming Deferral Expirations
Deferred Loans Upcoming Deferral Expirations $528,296 • Of loans with deferrals that expired in the third quarter of 2020: • 83% returned to making contractual payments or paid off the balance ($ in thousands) entirely. • 13% are still in the billing cycle. • 1% are 30+ days past due. • 3% were prov
Slide 14: OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Value Type and Industry
OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Value Type and Industry As of September 30, 2020 Acquisition, OOCRE & Development Commercial & % of Total On Deferred % of Category % Change in ($ in thousands) Real Estate Construction Total Loans - Payment Status Deferred Deferred vs PQ
Slide 15: The Commercial & Financial Portfolio Exhibits Significant Industry Diversification
The Commercial & Financial Portfolio Exhibits Significant Industry Diversification As of September 30, 2020 Commercial & On Deferred % of Category % Change in ($ in thousands) Financial % of Total Loans Payment Status Deferred Deferred vs PQ - 1 P Management Companies $ 186,298 R 3% F Q $ 5,114 3% (
Slide 16: Investment Securities Performance and Composition
Investment Securities Performance and Composition Portfolio yield declined 56 basis points to 2.12% from 2.68% in the prior quarter. The decline is attributed to faster prepayments, rate resets and lower yielding portfolio additions in the third quarter. The net unrealized gain increased from $31.5
Slide 17: Investment Securities Performance and Composition
Investment Securities Performance and Composition Our portfolio remains primarily backed by US government agencies. Non-guaranteed mortgage bonds are absent any hotel, shopping, or industrial exposure and is 100% comprised of housing collateral. The CLO portfolio only includes AAA and AA bonds with
Slide 18: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) • Total deposits increased $248 million, or 4%, quarter-over-quarter and increased $1.2 billion, $6,915 or 22%, compared to the third quarter of 2019. $6,667 $1,017 • Excluding deposits of $330 million acqu
Slide 19: Cost of Deposits
Cost of Deposits Deposit Mix and Cost of Deposits Trended Cost of Deposits Fed Funds Cost of Deposits 0.73% 0.61% 0.57% 0.31% 0.24% 9% 9% 9% 9% 10% 2.50% 2.50% 2.50% 2.25% 20% 21% 21% 20% 20% 2.00% 2.00% Cost of Deposits 1.75% 1.75% 21% 20% 20% 18% 20% Savings 1.50% Int Bearing Demand Money Market 1
Slide 20: Allowance for Credit Losses
Allowance for Credit Losses $5,763 $(19) $(1,736) Q3 Credit Costs $(1,245) $94,013 ($ in thousands) $ (1,245) Changes in volume and mix 400 Provision $91,250 for accrued interest receivable (reserve in Other Assets) (845) Provision for credit losses 756 Provision for unfunded commitments (reserve in
Slide 21: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loan Allowance for ($ in thousands) Outstandings Credit Losses % of Category Purchase Discount % of Category Acquisition, Development & Construction $ 280,610 $ 7,701 2.74 % $ 788 0.28 % Owner Occupied Commercial Real Estate 1,125,460 7,219 0.64 7,11
Slide 22: Asset Quality Trends
Asset Quality Trends ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO/Total Loans NPL NPL/Total Loans $3,225 $37,230 $30,051 $2,111 $26,044 $26,955 $25,582 $1,751 $1,736 0.52% 0.52% 0.48% 0.52% 0.64% $973 0.17% 0.25% 0.07% 0.12% 0.12% 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 3Q'19 4Q'19 1Q'20 2Q'20
Slide 23: Strong Capital
Strong Capital Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share $19.45 $19.91 11.1% 11.1% $18.70 $19.13 $18.82 10.7% 10.7% 10.2% $15.11 $15.57 $14.30 $14.76 $14.42 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 3Q'19 4Q'19 1Q'20
Slide 24: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $15.57 $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.67 $11.39 $11.15 $10.95 $10.41 $10.55 1Q'17 2Q'17 3Q'17 4Q'17 1Q'18 2Q'18 3Q'18 4Q'18 1Q'19 2Q'19 3Q'19 4Q'19 1Q'20 2Q'20 3Q'20 • Compounded annual growth rate of 12% in tangible book value per sh
Slide 25: Contact Details: Seacoast Banking Corporation of Florida
Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF THIRD QUARTER 2020 EARNINGS PRESENTATION 25
Slide 26: Appendix
Appendix THIRD QUARTER 2020 EARNINGS PRESENTATION 26
Slide 27: Fourth Street Banking Company Acquisition
Fourth Street Banking Company Acquisition Fair Value of Assets and Liabilities Acquired (Preliminary) As of Acquisition Loan Portfolio Valuation and CECL Impact (In thousands) Date August 21, 2020 • Loans acquired of $303.4 million includes: ◦ $3.7 million purchase discount on $257.7 million in non-
Slide 28: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Nine Months Ended (Amounts in thousands) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Commercial pipeline at period end $ 256,191 $ 117,042 $ 171,125 $ 277,788 $ 396,422 $ 256,191 $ 396,422 Commercial loan originations1 88,245 106,857 183,330 304,343 3
Slide 29: 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 methods other than Generally Accepted Accounting Principles trends and facilitate comparisons with the performance o
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Net Income $ 22,628 $ 25,080 $ 709 $ 27,176 $ 25,605 $ 48,417 $ 71,563 Total noninterest income 16,946 15,006 14,688 16,376 13,943 46,640 40,356 Se
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Adjusted Noninterest Expense $ 45,432 $ 40,676 $ 41,482 $ 35,967 $ 36,911 $ 127,590 $ 116,036 Foreclosed property expense and net gain/(loss) on sa
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Return on Average Tangible Assets (ROTA) 1.20 1.37 0.11 1.66 1.61 0.93 1.53 Impact of other adjustments for Adjusted Net Income 0.18 (0.04) 0.21 (0
Slide 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'20 2Q'20 1Q'20 4Q'19 3Q'19 3Q'20 3Q'19 Net Interest income1 $ 63,621 $ 67,388 $ 63,291 $ 61,846 $ 61,027 $ 194,300 $ 182,107 Accretion on acquired loans (3,254) (2,988) (4,287) (3,407) (
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