Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q3 2023 Earnings Presentation
42 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Nov 2, 2023
Slide 1: Investor Presentation Third Quarter 2023
INVESTOR PRESENTATION THIRD QUARTER 2023
Slide 2: Forward-looking statements
2THIRD QUARTER 2023 EARNINGS PRESENTATION This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statemen
Slide 3: Agenda
01 ABOUT SEACOAST BANK 02 OUTLOOK 03 COMPANY PERFORMANCE 04 APPENDIX
Slide 4: About Seacoast Bank
AGENDA ABOUT SEACOAST BANK
Slide 5: About Seacoast Bank overview
5THIRD QUARTER 2023 EARNINGS PRESENTATION • $14.8 billion in assets as of September 30, 2023, operating in the nation’s fastest growing and third most populated state • Strong presence in Florida’s most attractive markets, increasing to #15 Florida market share in 2023 from #18 in 2022 ▪ #1 Florida-
Slide 6: Proven Track Record of Successful and Value-Added Integrations
6THIRD QUARTER 2023 EARNINGS PRESENTATION PROVEN TRACK RECORD OF SUCCESSFUL AND VALUE-ADDED INTEGRATIONS
Slide 7: Outlook
AGENDA OUTLOOK
Slide 8: Executing Our Balanced Growth Strategy
8THIRD QUARTER 2023 EARNINGS PRESENTATION Executing Our Balanced Growth Strategy BUILD the business to become the dominant commercial bank in Florida ▪ Organic growth leveraging technology and high performance culture to attract best banking talent in Florida from larger regionals ▪ Opportunistic ac
Slide 9: Company Performance
AGENDA COMPANY PERFORMANCE
Slide 10: Third quarter highlights
10THIRD QUARTER 2023 EARNINGS PRESENTATION • Increased Florida market share to #15 compared to #18. • 3.7% annualized organic deposit growth, with the additional liquidity used to pay down brokered deposits and FHLB borrowings. • Strong capital, with a Tier 1 capital ratio of 14.0% and the ratio of
Slide 11: Net Interest Income
11THIRD QUARTER 2023 EARNINGS PRESENTATION Net Interest Income ($ in th ou sa nd s) $88,399 $119,858 $131,351 $127,153 $119,505 3.67% 4.36% 4.31% 3.86% 3.57% 3.58% 4.01% 3.78% 3.42% 3.13% Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23
Slide 12: Noninterest Income
12THIRD QUARTER 2023 EARNINGS PRESENTATION $16,103 $21,576 $17,793 $3,504 $4,560 $4,648 $4,138 $5,066 $1,684 $2,732 $3,318 $3,138 $434 $576 $410 $3,932 $4,828 $4,533 $1,363 $2,068 $2,197 BOLI Other Income Insurance Agency Income Mortgage Banking Wealth Management Interchange Income Service Charges 3
Slide 13: Continued Focus on Building Wealth Management
13THIRD QUARTER 2023 EARNINGS PRESENTATION $793 $870 $1,025 $1,158 $1,161 $1,239 $1,228 $1,162 $1,228 $1,387 $1,518 $1,578 $1,579 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Assets Under Management ($ in millions) 24% CAGR Continued Focus on Building Wealth Manageme
Slide 14: Noninterest Expense
14THIRD QUARTER 2023 EARNINGS PRESENTATION $56,899 $83,992 $83,153 $32,488 $50,511 $50,379$5,598 $9,318 $8,778 $6,518 $9,911 $9,724 $2,003 $2,397 $2,773 $9,532 $9,739 $9,241 Other Expense Legal & Professional Occupancy & Telephone FDIC Assessment Data Processing Cost Salaries & Benefits 3Q'22 2Q'23
Slide 15: Efficiency Ratio Trend
15THIRD QUARTER 2023 EARNINGS PRESENTATION 62% 48% 53% 55% 60% 54% 62% 56% 57% 63% 65% 67% 63% 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 3Q '23 Efficiency Ratio Trend 55% 49% 52% 53% 51% 53% 55% 53% 53% 52% 53% 56% 60% 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '
Slide 16: Disciplined Approach to Lending in a Strong Florida Economy
16THIRD QUARTER 2023 EARNINGS PRESENTATION $6,691 $8,145 $10,134 $10,118 $10,011 4.45% 5.29% 5.86% 5.89% 5.93% 4.31% 4.80% 5.17% 5.31% 5.34% Yield Excluding Accretion on Acquired Loans Reported Yield Total Loans 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Total Loans End-of-Period ($ in millions) Disciplined Appr
Slide 17: Lending Strategy Sustains a Diverse Loan Portfolio
17THIRD QUARTER 2023 EARNINGS PRESENTATION Commercial Real Estate - Owner Occupied $1,675,881 17% Construction and Land Development $793,736 8% Consumer $248,540 2% Commercial & Financial $1,584,050 16% Commercial Real Estate - Non-Owner Occupied $3,285,974 33% Residential Real Estate $2,418,903 24%
Slide 18: Loan Portfolio Mix
18THIRD QUARTER 2023 EARNINGS PRESENTATION At September 30, 2023 Loan Portfolio Mix CRE-Retail, 10.41% CRE-Office, 5.95% CRE-Multifamily 5+, 5.01% CRE-Hotel/Motel, 3.94% CRE-Industrial/Warehouse, 3.55% CRE-Other, 3.96% OOCRE-Office, 4.88% OOCRE-Other, 11.86% Construction & Land Development, 7.93% Co
Slide 19: Non-owner Occupied CRE in Florida's Strongest Markets
19THIRD QUARTER 2023 EARNINGS PRESENTATION Non-owner Occupied Commercial Real Estate in Florida’s Strongest Markets Non-owner Occupied Commercial Real Estate by MSA Balance ($ in thousands) Balance % of Total Loans Miami / Dade County $ 617,179 6.15 % Orlando-Kissimmee, FL MSA 444,550 4.44 Ft. Laude
Slide 20: Non-owner Occupied Commercial Real Estate
20THIRD QUARTER 2023 EARNINGS PRESENTATION Non-owner Occupied Commercial Real Estate CRE Non-Owner Occupied ($ in ‘000s) Balance Balance % of Total Loans Average Loan Size 30+ Days Past- Accruing Non Accrual Weighted LTV Retail $ 1,041,818 10.41 % $ 1,996 $ — $ — 52 % Office 595,381 5.95 1,637 106 2
Slide 21: Allowance for Credit Losses and Purchase Discount
21THIRD QUARTER 2023 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 $ 793,736 $ 7,685 0.97 % $ 10,235 1.29 % Owner Occupied Commerci
Slide 22: Continued Strong Asset Quality Trends
22THIRD QUARTER 2023 EARNINGS PRESENTATION Net Charge-Offs $12,748 NCO NCO/Average Loans 3Q’22 4Q’22 1Q’23 2Q’23 3Q’23 ($ in thousands) Nonperforming Loans and Criticized and Classified Loans $21,464 $28,843 $50,787 $48,326 $41,508 0.32% 0.35% 0.50% 0.48% 0.41% 0.80% 1.42% 1.60% 1.40% 1.36% NPL NPL/
Slide 23: Investment Securities Performance and Composition
23THIRD QUARTER 2023 EARNINGS PRESENTATION Investment Securities Performance and Composition Unrealized Loss in Securities as of September 30, 2023 (in thousands) Amortized Cost Fair Value Net Unrealized Gain /(Loss) Δ from 2Q’23 Available for Sale Government backed $ 39,388 $ 38,436 $ (952) $ (643)
Slide 24: Distinctive Deposit Franchise Supported by Attractive Markets
24THIRD QUARTER 2023 EARNINGS PRESENTATION Deposits End-of-Period ($ in millions) $8,765 $9,982 $12,310 $12,283 $12,108 3.25% 4.50% 5.00% 5.25% 5.50% 0.09% 0.21% 0.77% 1.38% 1.79% Total Deposits Fed Funds Cost of Deposits 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Distinctive Deposit Franchise Supported by Attra
Slide 25: Granular, Diverse and Relationship-Focused Deposit Base
25THIRD QUARTER 2023 EARNINGS PRESENTATION Deposits End-of-Period ($ in millions) $8,765 $9,982 $12,310 $12,283 $12,108 Transaction Accounts Savings Money Market Brokered Other Time Deposits 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 Granular, Diverse and Relationship-Focused Deposit Base Excluding brokered depo
Slide 26: Liquidity Sources vs Uninsured Deposits
26THIRD QUARTER 2023 EARNINGS PRESENTATION Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,445 $3,536 $696 $2,647 $369 $1,808 $300 $625 Borrowing Capacity + Cash Uninsured and Uncollateralized Deposits Total Cash & Borrowing Capacity = $6
Slide 27: Robust Capital
27THIRD QUARTER 2023 EARNINGS PRESENTATION $15.98 $14.69 $14.25 $14.24 $14.26 $20.95 $22.45 $24.24 $24.14 $24.06 Tangible Book Value Per Share Book Value Per Share 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 9.8% 9.1% 8.4% 8.5% 8.7% 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 17.5% 15.8% 14.6% 14.7% 15.1% 16.5% 14.8% 13.4% 13.
Slide 28: Investor Relations
Michael Young Treasurer & Director of Investor Relations Michael.Young@SeacoastBank.com (772) 403-0451 INVESTOR RELATIONS NASDAQ: SBCF
Slide 29: Appendix
29THIRD QUARTER 2023 EARNINGS PRESENTATION Appendix
Slide 30: Quarterly Trend
30THIRD QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend Nine Months Ended (Amounts in thousands) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 3Q'23 3Q'22 Commercial pipeline at period end $ 300,798 $ 217,574 $ 297,380 $ 395,652 $ 530,430 $ 300,798 $ 530,430 Commercial loan originations 106,497 317,378 321,665 4
Slide 31: Recognition
31THIRD QUARTER 2023 EARNINGS PRESENTATION Recognition In October 2023, Seacoast was recognized among Fortune’s Best Workplaces for Women for 2023. Seacoast sets a leading example by fostering inclusivity, empowering women, and creating a workplace where every individual can reach their full potenti
Slide 32: Florida's Economic Strength Continues, and Acquisition Opportunities Remain
32THIRD QUARTER 2023 EARNINGS PRESENTATION Florida’s Economic Strength Continues, and Acquisition Opportunities Remain Florida’s economic strength is evident. Individual and business migration to Florida has surged, and the economy has diversified across finance and technology. 14.6% Between 2010 an
Slide 33: Florida Population Trends
33THIRD QUARTER 2023 EARNINGS PRESENTATION Florida Population Trends Florida’s economic strength is evident. Individual and business migration has surged, and the economy has diversified across finance and technology. Florida’s population growth has roughly doubled the national average. That trend i
Slide 34: Seacoast's Approach to Customer Analytics Is a Unique Advantage
34THIRD QUARTER 2023 EARNINGS PRESENTATION Seacoast’s Approach to Customer Analytics Is a Unique Advantage
Slide 35: Unique Approach to Growing Customer Value
35THIRD QUARTER 2023 EARNINGS PRESENTATION Unique Approach to Growing Customer Value
Slide 36: Successful online and mobile upgrade deliver an improved customer experience
36THIRD QUARTER 2023 EARNINGS PRESENTATION Successful online and mobile upgrade deliver an improved customer experience 121%reduction of inbound calls to telephone support center for routine password changes or balance checks Improvement in App Store rating performance Seacoast Bank successfully upg
Slide 37: Building a Modern Technology Stack That Scales with Growth
37THIRD QUARTER 2023 EARNINGS PRESENTATION Building a Modern Technology Stack That Scales with Growth, And Delivers On Our Vision for Customer & Banker Experience… Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022 Q2 digital platform launched 2022
Slide 38: Explanation of Certain Unaudited Non-GAAP Financial Measures
38THIRD QUARTER 2023 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
Slide 39: Quarterly Trend
39THIRD QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Net Income $ 31,414 $ 31,249 $ 11,827 $ 23,927 $ 29,237 Total noninterest income 17,793 21,576 22,445 17,651 16,103 Securities losses/(gains), net 387 176 (107) (18)
Slide 40: Quarterly Trend
40THIRD QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Adjusted Noninterest Expense $ 83,153 $ 83,992 $ 81,925 $ 70,431 $ 56,899 Provision for unfunded commitments — — (1,239) — (1,015) Foreclosed property expense and net
Slide 41: Quarterly Trend
41THIRD QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Return on Average Assets (ROA) 0.84 % 0.84 % 0.34 % 0.78 % 1.10 % Impact of removing average intangible assets and related amortization 0.20 0.22 0.18 0.16 0.07 Retur
Slide 42: Quarterly Trend
42THIRD QUARTER 2023 EARNINGS PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 3Q'23 2Q'23 1Q'23 4Q'22 3Q'22 Yield on Loans1 5.93 % 5.89 % 5.86 % 5.29 % 4.45 % Impact of accretion on acquired loans (0.59) (0.58) (0.69) (0.49) (0.14) Yield on loans excluding accretion on acqu
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