Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q4 2021 Earnings Presentation
32 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jan 28, 2021
Slide 1: Earnings Presentation Fourth Quarter 2021
EARNINGS PRESENTATION FOURTH QUARTER 2021 20 21
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 Section 27A of the Securities capital requirements for banking organizations generally; the risks of mergers, acquisitions and divestitures, includi
Slide 3: Valuable Florida Franchise, Well Positioned for Growth
Valuable Florida Franchise, Well Positioned for Growth with Strong Capital, Liquidity and Disciplined Credit Culture Seacoast Customer Map JACKSONVILLE MSA • $9.7 billion in assets as of December 31, • Highly disciplined credit portfolio 2021, operating in the nation’s third-most populous state • St
Slide 4: Florida's Economic Growth Continues
Florida’s Economic Growth Continues • Companies and individuals seeking lower taxes, warmer weather, and easy flights back to the Northeast are migrating to Florida. • Florida's population grew 14.6% between 2010 and 2020. Double the rate of overall U.S. population growth. Source: US Census data ◦ A
Slide 5: Fourth Quarter 2021 Highlights
Fourth Quarter 2021 Highlights • Earnings per share of $0.62, an increase of 17% compared to • Net interest margin declined six basis points to 3.16%. 4Q’20. Excluding the effect of PPP and accretion on acquired loans, net interest margin increased two basis points to 2.91%. • Net income of $36.3 mi
Slide 6: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans $68,903 $66,741 $71,455 $72,412 $65,933 ($ in thousands) 3.59% 3.51% 3.23% 3.22% 3.16% 3.37% 3.25% 3.03% 2.89% 2.91% 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 • Net interest income1 totaled
Slide 7: Continued Strength in Noninterest Income
Continued Strength in Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $19,028 $18,706 $19,058 $1,128 $18,330 $1,295 $1,128 $1,295 $14,930 $5,350 $14,948 $889 $6,084 $5,380 $889 $5,708 BOLI $2,314 $2,332 2 $113 $812 BOLI 3 $812 Other Income $200 Ot
Slide 8: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $55,268 $6,187 $50,263 $48,309 $46,811 $4,151 $5,872 $5,791 $43,681 $41,906 $5,891 $5,918 $2,461 $2,049 2 $6,468 $6,456 $2,131 Other Expense 2 $5,693 Other Expense $5,54
Slide 9: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 Palm Beach First Green Freedom Community Bank Bank Bank and North Legacy Bank Star Bank of Florida First Bank of the Acquisitions Palm Beaches 66% Palm Beach Community and North Star Bank Acquisition 62% 60% 60% 57% 56% 55% 54% 55% 53%
Slide 10: Building Florida's Leading Commercial Bank
Building Florida’s Leading Commercial Bank Austen Carroll Chris Rolle South Florida expansion continues Brannon Fitch joins as Chief Lending Officer joins as West FL Regional Six bankers join in Palm Beach and formerly of BB&T, joins as Previously Chief Banking Market President, formerly Broward cou
Slide 11: Lending Strategy Produced and Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio At December 31, 2021 ($ in thousands) Paycheck Construction and Protection Land Development Program $230,824 The Company remains focused and committed Consumer $91,107 4% to its strict credit underwriting standards. $174,175
Slide 12: Disciplined Approach to Lending in an Expanding Florida Economy
Disciplined Approach to Lending in an Expanding Florida Economy Total Loans Outstanding ($ in millions) $5,906 $5,925 $5,735 $91 $5,661 $191 Loans outstanding, excluding PPP, increased $119 million $5,834 quarter-over-quarter, an annualized increase of 8%. $5,437 $5,715 $567 $582 Commercial loan ori
Slide 13: Paycheck Protection Program Loans
Paycheck Protection Program Loans PPP Loans Rollforward $295 ($778) PPP Fee Revenue Summary 3,201 loans 7,423 loans (in thousands) Fees earned from SBA to date (net of related $ 27,641 ($ in millions) costs) to originate PPP loans $576 Fees recognized in 2020 (7,774) 5,169 loans $9.5 deferred fees F
Slide 14: Investment Securities Performance and Composition
Investment Securities Performance and Composition Unrealized Gain (Loss) in Securities as of December 31, 2021 $1,644 Amortized Unrealized Unrealized $1,546 (in thousands) Cost Gains Losses Fair Value Available for Sale Government backed $ 6,466 $ 316 $ (3) $ 6,779 $1,398 ($ in millions) Agency mort
Slide 15: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) $8,334 $8,068 $7,836 $617 $7,386 $555 $502 $6,933 $613 Total deposits decreased $266 million quarter-over- quarter, primarily reflecting strategic outflows in $831 $2,785 $2,547 brokered money market deposi
Slide 16: Continued Branch Optimization While Maintaining Low Cost of Deposits
Continued Branch Optimization While Maintaining Low Cost of Deposits Trended Cost of Deposits and Deposits per Branch 1 Cost of Deposits Fed Funds Deposits per branch Continued focus on organic growth and relationship-based funding, in combination with our innovative analytics platform, supports a w
Slide 17: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) $1,239 Assets under management totaled $1.2 billion at December 31, 2021 increasing 42% from December 31, 2020. This is a result of the wealth management team’s continuing success at R winning business with comme
Slide 18: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for ($ in thousands) Outstanding Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 230,824 $ 2,751 1.19 % $ 500 0.22 % Owner Occupied Commercial Real Estate 1,197,774 8,578 0.72 3,850 0.32
Slide 19: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Net Charge-Offs Nonperforming Loans NCO NCO/Total Loans NPL NPL/Total Loans $3,127 $36,110 $35,328 $32,920 $32,612 $30,598 $1,432 0.63% 0.62% 0.61% 0.21% 0.55% 0.52% $655 0.10% $570 $370 0.03% 0.05% 0.04% 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 4Q'20 1Q'2
Slide 20: Strong Capital Supporting a Fortress Balance Sheet
Strong Capital Supporting a Fortress Balance Sheet Tangible Book Value and Book Value Per Share Tangible Common Equity / Tangible Assets Tangible Book Value Per Share Book Value Per Share $22.12 $22.40 $20.89 $21.33 11.0% 11.1% $20.46 10.7% 10.4% 10.6% $17.52 $17.84 $16.62 $17.08 $16.16 4Q'20 1Q'21
Slide 21: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value $17.84 $17.52 $17.08 $16.62 $16.16 $15.57 $15.11 $14.76 $14.30 $14.42 $13.65 $12.98 $12.33 $12.01 $11.39 $11.67 $10.95 $11.15 $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 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 • C
Slide 22: Tracey L. Dexter, Investor Relations
Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF
Slide 23: Appendix
Appendix FOURTH QUARTER 2021 EARNINGS PRESENTATION 23
Slide 24: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Twelve Months Ended (Amounts in thousands) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Commercial pipeline at period end $ 397,822 $ 368,907 $ 322,014 $ 240,871 $ 166,735 397,822 166,735 Commercial loan originations1 408,948 331,618 193,028 204,253 27
Slide 25: January 2022 Acquisition of Business Bank of Florida, Corp.
January 2022 Acquisition of Business Bank of Florida, Corp. Balances Prior to Acquisition Purchase Price (Preliminary) (Excludes Purchase Accounting and Fair Value Adjustments) (In thousands) December 31, 2021 (In thousands, except per share data) January 3, 2022 Selected Assets: Number of Business
Slide 26: January 2022 Acquisition of Sabal Palm Bancorp, Inc.
January 2022 Acquisition of Sabal Palm Bancorp, Inc. Balances Prior to Acquisition Purchase Price (Preliminary) (Excludes Purchase Accounting and Fair Value Adjustments) (In thousands) December 31, 2021 (In thousands, except per share data) January 3, 2022 Selected Assets: Number of Sabal Palm Banco
Slide 27: Integrated Delivery Model Supports Growth Strategy
Integrated Delivery Model Supports Growth Strategy Strong momentum in usage of digital tools and other non-branch delivery channels, and tools to equip our teams to outperform Consumer Business 61% 11% 45% 11% % consumer % increase % business % increase in deposits in consumer deposits business onli
Slide 28: 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 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Net Income $ 36,330 $ 22,944 $ 31,410 $ 33,719 $ 29,347 $ 124,403 $ 77,764 Total noninterest income 18,706 19,028 15,322 17,671 14,930 70,727 61,
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Adjusted Noninterest Expense $ 48,309 $ 46,811 $ 43,400 $ 43,879 $ 41,906 $ 182,399 $ 169,496 Foreclosed property expense and net (loss)/gain on
Slide 31: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Return on Average Assets (ROA) 1.43 % 0.93 % 1.40 % 1.61 % 1.39 % 1.33 % 0.99 % Impact of removing average intangible assets and related 0.08 0.0
Slide 32: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'21 3Q'21 2Q'21 1Q'21 4Q'20 4Q'21 4Q'20 Net Interest income1 $ 72,412 $ 71,455 $ 65,933 $ 66,741 $ 68,903 $ 276,541 $ 263,203 Accretion on acquired loans (3,520) (3,483) (2,886) (2,868)
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