Seacoast Banking Corporation Of Florida · NASDAQ:SBCF

Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q3 2022 Earnings Presentation

38 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Oct 31, 2022

  1. Slide 1: Earnings Presentation Third Quarter 2022

    EARNINGS PRESENTATION THIRD QUARTER 2022 2022

  2. Slide 2: Forward-looking statements

    2THIRD QUARTER 2022 EARNINGS PRESENTATION 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

  3. Slide 3: Valuable Florida Franchise, Well-Positioned with Strong Capital and Liquidity

    3THIRD QUARTER 2022 EARNINGS PRESENTATION • $10.3 billion in assets as of September 30, 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 St. Lucie MSA ▪ #1 Florida-based b

  4. Slide 4: Florida's Economic Strength is Evident

    4THIRD QUARTER 2022 EARNINGS PRESENTATION Attracted by Florida’s favorable business climate and lower taxes, individual and business migration to Florida has surged. The significant inflow of wealth is positively impacting the state’s fiscal and economic health. Sources: US Census data; The Florida

  5. Slide 5: Third Quarter 2022 Highlights

    5THIRD QUARTER 2022 EARNINGS PRESENTATION • Net interest margin expanded 29 basis points to 3.67%. Excluding the effects of PPP and accretion on acquired loans, net interest margin expanded 33 basis points to 3.57%. • Asset sensitive balance sheet and ample liquidity support the opportunity for cont

  6. Slide 6: Significant Expansion in Net Interest Margin and Net Interest Income

    6THIRD QUARTER 2022 EARNINGS PRESENTATION Significant Expansion in Net Interest Margin and Net Interest Income ($ in th ou sa nd s) $71,455 $72,412 $76,639 $81,764 $88,399 3.22% 3.16% 3.25% 3.38% 3.67% 2.89% 2.91% 3.05% 3.24% 3.57% Net Interest Income Net Interest Margin NIM, excluding PPP and accre

  7. Slide 7: Noninterest Income

    7THIRD QUARTER 2022 EARNINGS PRESENTATION $19,058 $17,264 $16,465 $2,495 $3,408 $3,504 $4,131 $4,255 $4,138 $2,562 $2,774 $2,732 $2,550 $932 $434 $6,192 $4,546 $4,294 $1,128 $1,349 $1,363 Service Charges Interchange Income Wealth Management Mortgage Banking Other Income BOLI 3Q'21 2Q'22 3Q'22 $19,02

  8. Slide 8: Noninterest Expense

    8THIRD QUARTER 2022 EARNINGS PRESENTATION $46,811 $51,663 $56,899 $28,691 $31,542 $32,488 $4,657 $5,623 $5,598 $133 $0 $1,015 $5,441 $6,347 $6,518 $2,131 $1,565 $2,003 $5,758 $6,586 $9,277 Other Expense Legal & Professional Occupancy & Telephone Provision for Unfunded Commitments Data Processing Cos

  9. Slide 9: Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control

    9THIRD QUARTER 2022 EARNINGS PRESENTATION Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control Palm Beach Community Bank and North Star Bank Acquisitions Pa lm B ea ch C om m un ity a nd N or th S ta r Ba nk A cq ui si tio n 49% 48% 60% 50% 62% 48% 53% 55% 60% 54% 62% 56% 57% 3Q '

  10. Slide 10: Seacoast's Lending Strategy Produced and Sustains a Diverse Loan Portfolio

    10THIRD QUARTER 2022 EARNINGS PRESENTATION Commercial Real Estate - Owner Occupied $1,253,459 19% Construction and Land Development $361,913 5% Paycheck Protection Program $5,294 <1%Consumer $180,416 3% Commercial & Financial $1,182,384 18% Commercial Real Estate - Non-Owner Occupied $2,107,614 31%

  11. Slide 11: Disciplined Approach to Lending in a Strong Florida Economy

    11THIRD QUARTER 2022 EARNINGS PRESENTATION $6,691 $5,906 $5,925 $6,451 $6,542 $5,715 $5,834 $191 $91 4.49% 4.31% 4.30% 4.29% 4.45% 4.03% 3.94% 4.00% 4.10% 4.30% Yield Excluding PPP and Accretion on Acquired Loans Reported Yield PPP Loans Loans Excluding PPP 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 Total Loans

  12. Slide 12: Investment Securities Performance and Composition

    12THIRD QUARTER 2022 EARNINGS PRESENTATION Investment Securities Performance and Composition Unrealized Loss in Securities as of September 30, 2022 (in thousands) Amortized Cost Fair Value Net Unrealized Loss Δ from 2Q’22 Available for Sale Government backed $ 5,398 $ 5,072 $ (326) $ (223) Agency mo

  13. Slide 13: Strong Deposit Franchise Supported by Attractive Markets

    13THIRD QUARTER 2022 EARNINGS PRESENTATION 65% Deposits Outstanding ($ in millions) $8,334 $8,068 $9,244 $9,189 $8,765 $4,932 $4,966 $5,776 $5,862 $5,699 $2,785 $2,547 $2,937 $2,859 $2,639$617 $555 $531 $468 $427 0.25% 0.25% 0.50% 1.75% 3.25% 0.07% 0.06% 0.06% 0.06% 0.09% Transaction Accounts Saving

  14. Slide 14: Allowance for Credit Losses and Purchase Discount

    14THIRD QUARTER 2022 EARNINGS PRESENTATION Allowance for Credit Losses and Purchase Discount ($ in thousands) Loans Outstanding Allowance for Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 361,913 $ 3,345 0.92 % $ 375 0.10 % Owner Occupied Commercial

  15. Slide 15: Continued Strong Asset Quality Trends

    15THIRD QUARTER 2022 EARNINGS PRESENTATION Net Charge-Offs (Recoveries) $1,432 $570 $79 $103 NCO NCO/Total Loans 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 ($ in thousands) Nonperforming Loans $32,612 $30,598 $26,209 $26,442 $21,464 0.55% 0.52% 0.41% 0.40% 0.32% NPL NPL/Total Loans 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22

  16. Slide 16: Strong Capital Position

    16THIRD QUARTER 2022 EARNINGS PRESENTATION $17.52 $17.84 $17.12 $16.66 $15.98 $22.12 $22.40 $22.15 $21.65 $20.95 Tangible Book Value Per Share Book Value Per Share 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 10.6% 11.1% 9.9% 9.7% 9.8% 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 18.6% 18.2% 17.7% 17.7% 17.5%17.7% 17.4% 16.8% 16

  17. Slide 17: Tangible Book Value Per Share

    17THIRD QUARTER 2022 EARNINGS PRESENTATION $10.41 $10.55 $10.95 $11.15 $11.39 $11.67 $12.01 $12.33 $12.98 $13.65 $14.30 $14.76 $14.42 $15.11 $15.57 $16.16 $16.62 $17.08 $17.52 $17.84 $17.12 $16.66 $15.98 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

  18. Slide 18: Investor Relations

    Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF

  19. Slide 19: Appendix

    19THIRD QUARTER 2022 EARNINGS PRESENTATION Appendix

  20. Slide 20: Low Historical Deposit Beta Coupled with Favorable Deposit Composition

    20THIRD QUARTER 2022 EARNINGS PRESENTATION Low Historical Deposit Beta Coupled with Favorable Deposit Composition 0.25% 0.29% 0.50% 0.50% 0.50% 0.55% 1.00% 1.04% 1.25% 1.30% 1.53% 1.80% 2.01% 2.28% 2.50% 2.50% 0.13% 0.12% 0.13% 0.10% 0.15% 0.14% 0.14% 0.17% 0.22% 0.29% 0.33% 0.39% 0.43% 0.54% 0.67%

  21. Slide 21: Interest Rate Sensitivity

    21THIRD QUARTER 2022 EARNINGS PRESENTATION Interest Rate Sensitivity Change in Interest Rates 1-12 months 13-24 months +2.00% 9.6 % 13.4 % +1.00% 4.8 % 6.6 % Current — % — % -1.00% (5.9) % (9.2) % % Change in Projected Baseline Net Interest Income The table presents the projected impact of a change

  22. Slide 22: Quarterly Trend - Loan Pipelines and Originations

    22THIRD QUARTER 2022 EARNINGS PRESENTATION Quarterly Trend Nine Months Ended (Amounts in thousands) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Commercial pipeline at period end $ 530,430 $ 476,693 $ 619,547 $ 397,822 $ 368,907 $ 530,430 $ 368,907 Commercial loan originations1 340,438 461,855 372,986

  23. Slide 23: Transaction Value - Professional Holding Corp. Acquisition

    23THIRD QUARTER 2022 EARNINGS PRESENTATION Transaction Value • $398 million fully diluted, $26.93 per PFHD common share1 Consideration • PFHD shareholders will receive 0.8909 shares of Seacoast common stock per share • Options are rolled over into Seacoast options based on an exchange ratio of 0.890

  24. Slide 24: Non-GAAP financial measures

    24THIRD QUARTER 2022 EARNINGS PRESENTATION This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). The financial highlights provide reconciliations between GAAP and adjusted financial measures including net income, noninter

  25. Slide 25: Quarterly Trend Non-GAAP Reconciliation

    25THIRD QUARTER 2022 EARNINGS PRESENTATION Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Net Income $ 29,237 $ 32,755 $ 20,588 $ 36,330 $ 22,944 $ 82,580 $ 88,073 Total noninterest income 16,103 16,964 15,373 18,706 19,028 48

  26. Slide 26: Quarterly Trend Non-GAAP Reconciliation

    26THIRD QUARTER 2022 EARNINGS PRESENTATION Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Adjusted Noninterest Expense $ 56,899 $ 51,663 $ 50,705 $ 48,309 $ 46,811 $ 159,267 $ 134,090 Foreclosed property expense and net (loss)

  27. Slide 27: Quarterly Trend Non-GAAP Reconciliation

    27THIRD QUARTER 2022 EARNINGS PRESENTATION Quarterly Trend Nine Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Return on Average Assets (ROA) 1.10 % 1.21 % 0.79 % 1.43 % 0.93 % 1.03 % 1.29 % Impact of removing average intangible assets and related

  28. Slide 28: Quarterly Trend Non-GAAP Reconciliation

    28THIRD QUARTER 2022 EARNINGS PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Net Interest income1 $ 88,399 $ 81,764 $ 76,639 $ 72,412 $ 71,455 $ 246,802 $ 204,129 Accretion on acquired loans (2,242) (2,720) (3,717)

  29. Slide 29: Financial Highlights (Unaudited)

    FINANCIAL HIGHLIGHTS (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends Nine Months Ended (Amounts in thousands, except ratios and per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Summary of Earnings Net income $ 29,237 $ 32,755 $ 20,588 $ 36,330 $ 22,944

  30. Slide 30: Condensed Consolidated Statements of Income

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Quarterly Trends Nine Months Ended (Amounts in thousands, except per share data) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 3Q'22 3Q'21 Interest on securities: Taxable $ 15,653 $ 12,387 $ 10,041 $ 8,5

  31. Slide 31: Condensed Consolidated Balance Sheets

    CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES September 30, June 30, March 31, December 31, September 30, (Amounts in thousands) 2022 2022 2022 2021 2021 Assets Cash and due from banks $ 176,463 $ 363,343 $ 351,128 $ 238,750 $ 199,460 Inte

  32. Slide 32: Consolidated Quarterly Financial Data

    CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES (Amounts in thousands) 3Q'22 2Q'22 1Q'22 4Q'21 3Q'21 Credit Analysis Net charge-offs (recoveries) - non-acquired loans $ 129 $ (75) $ 72 $ 541 $ 198 Net charge-offs (recoveries) - acquired loan

  33. Slide 33: Average Balances, Interest Income and Expenses, Yields and Rates

    AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES 3Q'22 2Q'22 3Q'21 Average Yield/ Average Yield/ Average Yield/ (Amounts in thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate Assets Earni

  34. Slide 34: Average Balances, Interest Income and Expenses, Yields and Rates

    AVERAGE BALANCES, INTEREST INCOME AND EXPENSES, YIELDS AND RATES 1 (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021 Average Yield/ Average Yield/ (Amounts in thousands, except ratios) Balance Interest Rate

  35. Slide 35: Consolidated Quarterly Financial Data

    CONSOLIDATED QUARTERLY FINANCIAL DATA (Unaudited) SEACOAST BANKING CORPORATION OF FLORIDA AND SUBSIDIARIES September 30, June 30, March 31, December 31, September 30, (Amounts in thousands) 2022 2022 2022 2021 2021 Customer Relationship Funding Noninterest demand Commercial $ 2,827,591 $ 2,945,445 $

  36. Slide 36: Explanation of Certain Unaudited Non-GAAP Financial Measures

    Explanation of Certain Unaudited Non-GAAP Financial Measures This presentation contains financial information determined by methods other than Generally Accepted Accounting Principles (“GAAP”). Management uses these non- GAAP financial measures in its analysis of the Company’s performance and believ

  37. Slide 37: Net Income $ 29,237 $ 32,755 $ 20,588 $ 36,330 $ 22,944 $ ,580

    Net Income $ 29,237 $ 32,755 $ 20,588 $ 36,330 $ 22,944 $ 82,580 $ 88,073 Total noninterest income 16,103 16,964 15,373 18,706 19,028 48,440 52,021 Securities losses (gains), net 362 300 452 379 30 1,114 199 Gain on sale of domain name (included in other income) — — — (755) — — — Total Adjustments t

  38. Slide 38: Impact of other adjustments for Adjusted Net Income 0.10 0.09 0.21 (0.02) 0.23 0.13

    Impact of other adjustments for Adjusted Net Income 0.10 0.09 0.21 (0.02) 0.23 0.13 0.11 Adjusted Return on Average Tangible Assets 1.27 1.38 1.06 1.49 1.23 1.24 1.48 Average Shareholders' Equity $ 1,349,475 $ 1,350,568 $ 1,400,535 $ 1,303,686 $ 1,248,547 $ 1,366,672 $ 1,185,530 Less average goodwil

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