Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q2 2020 Earnings Presentation
37 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Aug 7, 2020
Slide 1: Investor Presentation Second Quarter 2020
Investor Presentation SECOND QUARTER 2020 SECOND QUARTER 2020
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 banking industry; our concentration in commercial real estate loans; the failure of assumptions and estimates, as well as Securit
Slide 3: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX SECOND QUARTER 2020 3
Slide 4: 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 • $8.1 billion in assets as of June 30, 2020, • Highly disciplined credit portfolio operating in the nation’s third-most populous state • Prudent liquidity position • Stron
Slide 5: COVID-19 Response
COVID-19 Response Associates Operations and Service Levels • Substantially all non-retail associates working • Branches are open for appointments and drive-thru remotely • Heightened cleaning and protection protocols • Staggering shifts and locations, including • Expanded call center staffing to sup
Slide 6: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX SECOND QUARTER 2020 6
Slide 7: Consistent Growth in NII, NIM Impacted by Lower Rates and Liquidity
Consistent Growth in NII, NIM Impacted by Lower Rates and Liquidity ($ In Thousands) • Net interest income1 totaled $67.4 million, up $4.1 million or 6% from the prior quarter and up $7.2 million or 12% from the second quarter of 2019. Net interest margin1 decreased 23 basis points to 3.70% quarter-
Slide 8: Continued Strong Performance in Noninterest Income
Continued Strong Performance in Noninterest Income 1 2 3 Noninterest income increased $0.3 million sequentially to $15.0 million, and adjusted noninterest income1 decreased $0.9 million to $13.8 million sequentially. Results for the second quarter of 2020 included $1.2 million in realized gain on sa
Slide 9: Continued Focus on Disciplined Expense Control
Continued Focus on Disciplined Expense Control 1 2 2 Noninterest expense decreased $5.4 million and adjusted noninterest expense1 decreased $0.8 million sequentially. Results for the second quarter include $0.2 million of merger-related costs compared to $4.9 million in the first quarter of 2020. Me
Slide 10: Efficiency Ratio Trend
Efficiency Ratio Trend GAAP - Efficiency Adjusted - Efficiency1 1 • The efficiency ratio was 50.1% compared to 59.8% in the prior quarter and 53.5% in the second quarter of 2019. • The adjusted efficiency ratio1 was 49.8% compared to 53.6% in the prior quarter and 51.4% in the second quarter of 2019
Slide 11: Loan Growth Increased as a Result of PPP Production
Loan Growth Increased as a Result of PPP Production Total Loans Outstanding ($ in millions) • As of June 30, Seacoast has approved over 5,000 loans under the Paycheck Protection Program ("PPP") totaling $576 million. • Loans outstanding totaled $5.8 billion, an increase of $884 million, or 18%, year
Slide 12: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits Outstanding ($ in millions) • Total deposits increased $779 million, or 13%, quarter- over-quarter and increased $1.1 billion, or 20%, compared to the second quarter of 2019. • Overall cost of deposits decreased to 31 basis points fro
Slide 13: Cost of Deposits
Cost of Deposits Deposit Mix and Cost of Deposits Trended Cost of Deposits 0.76% 0.73% 0.61% 0.57% 0.31% Cost of Deposits Our focus on organic growth and relationship-based funding, in combination with our innovative analytics platform, supports a well-diversified low-cost deposit portfolio. SECOND
Slide 14: Investment Securities Performance and Composition
Investment Securities Performance and Composition Portfolio yield declined 34 basis points to 2.68% from 3.02% in the prior quarter. 1Q'20 yield included 22 basis points of Agency CMBS make-whole prepayments, which declined to 11 basis points in 2Q'20, while the remainder of the yield decline can be
Slide 15: Investment Securities Performance and Composition
Investment Securities Performance and Composition Our portfolio remains primarily backed by U.S. government agencies. Non-guaranteed mortgage bonds are absent any hotels, shopping, or industrial exposure and is 100% comprised of housing collateral. The CLO portfolio includes only AAA and AA bonds. I
Slide 16: Conservative Liquidity Position
Conservative Liquidity Position Total liquidity resources of $3.7 billion at June 30, 2020: • Cash and cash equivalents of $524 million • Unsecured lines of credit of $135 million • Lines of credit under lendable collateral value of $1.4 billion • $882 million debt securities and $764 million loans
Slide 17: Steady Increase in Shareholder Value
Steady Increase in Shareholder Value • Compounded annual growth rate of 12% in tangible book value per share in the last three years. • The decline in tangible book value per share during the first quarter of 2020 was primarily attributed to the Day-1 impact of the adoption of CECL. Tangible book va
Slide 18: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX SECOND QUARTER 2020 18
Slide 19: Seacoast's Lending Strategy Has Resulted in a Diverse Loan Portfolio
Seacoast’s Lending Strategy Has Resulted in a Diverse Loan Portfolio At June 30, 2020 ($ in thousands) Paycheck Acquisition, Protection Development Program & Construction • Construction and land development and commercial real $298,835 $576,450 estate loans, as defined in regulatory guidance, repres
Slide 20: Continued Strong Asset Quality Trends Through Second Quarter
Continued Strong Asset Quality Trends Through Second Quarter ($ in thousands) 1 2 1Adoption of CECL on January 1, 2020 resulted in an increase of $21.2 million, from 0.80% to 1.08% SECOND QUARTER 2020 2As a percentage of total risk-based capital 20
Slide 21: Paycheck Protection Program
Paycheck Protection Program ($ in thousands) • $576.5 million outstanding at June 30, 2020, net of • Average SBA fee of 3.84%. deferred fees. • $5.1 million in interest and fees recognized in the second • Average loan size of $116,000. quarter of 2020, resulting in a yield of 4.81%. • Median loan si
Slide 22: Deferred Loans
Deferred Loans At June 30, 2020 ($ in millions) 10% 32% 30% 17% $14 5% $18 9% • At June 30, 2020, approximately 2,500 loans totaling $1.1 billion, or 21% of total loans excluding PPP, were on payment deferral. • 11% of deferred loans (by count) also obtained PPP funding. SECOND QUARTER 2020 22
Slide 23: Deferred Loans
Deferred Loans At June 30, 2020 ($ in millions) 82% returned to making payments in July 8% renewed deferral 8% billed not paid 2% paid off Payments are scheduled to resume on 39% of deferred loans in the third quarter of 2020 and 61% of deferred loans in the fourth quarter of 2020. SECOND QUARTER 20
Slide 24: OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Type and Industry
OOCRE, CRE and AD&C Loans are Widely Distributed Across Asset Type and Industry At June 30, 2020 OOCRE & Acquisition, Commercial Development & % of Total % of Category ($ in thousands) Real Estate Construction Total Loans Deferred Loans Deferred Office Building $ 708,635 $ 10,153 $ 718,788 12% $ 196
Slide 25: The Commercial & Financial Portfolio Exhibits Significant Industry Diversification
The Commercial & Financial Portfolio Exhibits Significant Industry Diversification At June 30,2020 Commercial & % of Category ($ in thousands) Financial % of Total Loans Deferred Loans Deferred Management Companies1 $ 163,322 3% $ 36,254 22% Professional, Scientific, Technical & Other Services 87,48
Slide 26: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX SECOND QUARTER 2020 26
Slide 27: Strong Capital
Strong Capital Tangible Book Value / Book Value Per Share Tangible Common Equity / Tangible Assets Return on Tangible Common Equity Total Risk Based and Tier 1 Capital 1 10.0% 2 2 8.0% 1Non-GAAP measure, see “Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and a re
Slide 28: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX SECOND QUARTER 2020 28
Slide 29: 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 All metrics as of 2Q'20 SECOND QUARTER 2020 29
Slide 30: Contact Details
Contact Details: Seacoast Banking Corporation of Florida Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF www.SeacoastBanking.com SECOND QUARTER 2020 30
Slide 31: Agenda
Agenda 1 ABOUT SEACOAST BANK 2 COMPANY PERFORMANCE 3 LENDING AND CREDIT 4 CAPITAL 5 DIGITAL AND MULTI CHANNEL DISTRIBUTION 6 APPENDIX SECOND QUARTER 2020 31
Slide 32: 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 33: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Net Income $ 25,080 $ 709 $ 27,176 $ 25,605 $ 23,253 $ 25,789 $ 45,958 Total noninterest income 15,006 14,688 16,376 13,943 13,577 29,694 26,413 Sec
Slide 34: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Adjusted Noninterest Expense $ 40,676 $ 41,482 $ 35,967 $ 36,911 $ 38,027 $ 82,158 $ 79,125 Foreclosed property expense and net gain/(loss) on sale
Slide 35: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Average Shareholders' Equity $ 1,013,095 $ 993,993 $ 976,200 $ 946,670 $ 911,479 $ 1,003,544 $ 895,610 Less average goodwill and intangible assets (
Slide 36: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 2Q'20 1Q'20 4Q'19 3Q'19 2Q'19 2Q'20 2Q'19 Net interest margin excluding PPP and accretion on acquired 3.46 % 3.66 % 3.63 % 3.64 % 3.67 % 3.56 % 3.71 % loans Impact of accretion on acquired l
Slide 37: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation SECOND QUARTER 2020 37
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