Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q2 2014 Earnings Presentation
16 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Aug 1, 2014
Slide 1: Second Quarter 2014
Second Quarter 2014 July 29, 2014
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
2 Cautionary Notice Regarding Forward - Looking Statements This press release contains “forward - looking statements” within the meaning of Section 27 A of the Securities Act of 1933 and Section 21 E of the Securities Exchange Act of 1934 , including, without limitation, statements about future fina
Slide 3: Q2 2014 Financial and Strategic Highlights
3 Q2 2014 Financial and Strategic Highlights Financial Highlights • Total revenues up $842 thousand linked quarter or over 15% annualized • Average loans outstanding increased $30.6 million linked quarter or over 9% annualized • Adjusted net income up 18% linked quarter* • Asset quality improvement
Slide 4: Consistent Loan Growth In All Portfolios
4 Consistent Loan Growth In All Portfolios • Total loans increased 5% year over year to $1.3 billion • Commercial originations of $ 53 million in Q2, $ 16 million higher than Q1 • Residential production of $61 million, a 54% increase over Q1 • Average Commercial loan size of $524 thousand originated
Slide 5: Consistent Growth In Low Cost Deposits
5 Consistent Growth In Low Cost Deposits • A verage noninterest bearing demand deposits were up $50 million, or 11 % compared with prior year • Total average deposits increased $19 million linked quarter • Average noninterest bearing demand deposits were up 21% linked quarter annualized • Non - inte
Slide 6: Funding Costs Continue To Decline
6 Funding Costs Continue To Decline • Cost of funding continues to approach zero • Improved deposit mix lowers total cost of deposits by 3 bps compared to Q2 2013 • Ending noninterest bearing demand deposits increased to 28% of total deposits 16 15 14 14 13 36 36 35 33 33 2Q13 3Q13 4Q13 1Q14 2Q14 Fu
Slide 7: Net Interest Margin Improves By 3 Bps, While Net Interest Income Improves Significantly
7 Net Interest Margin Improves By 3 Bps, While Net Interest Income Improves Significantly • Net interest income increased $502 thousand linked quarter • Net interest margin improves 3 basis points from Q1 • Average loan outstandings up $31 million linked quarter or 9% annualized $16,172 $16,872* $16
Slide 8: Non-Interest Income
8 Non - Interest Income • Non - interest income increased $338 thousand from Q1, or 6% • Interchange fees were up $111 thousand, or 8% linked quarter • Improved sales in mortgage banking resulted in a $194 thousand or 29% increase in mortgage banking fees from Q1 1,641 1,741 1,778 1,507 1,484 1,256
Slide 9: Non-Interest Expense
9 Non - Interest Expense* • Higher commissions (salaries and benefits) from increased mortgage banking production and brokerage revenue in Q2 • Higher than expected healthcare claims (salaries and wages) in Q2 expected to slow in second half of 2014, in line with prior year • Investment of $748 thou
Slide 10: Non-Interest Expense
10 Non - Interest Expense* • Implemented Cost reductions totaling $1.9 million in Q2 (only partially realized) • Higher commissions from increased mortgage banking production and brokerage revenue combined with higher healthcare claims drove increase in core operating expense in Q2 $19,080 $18,091 $
Slide 11: Asset Quality Improvement
11 Asset Quality Improvement • Net recoveries of $112 thousand in Q2 • NPLs have declined 35% year over year • Loan loss provision reversal of $1.4 million in Q2 • Nonperforming assets to total assets declined to 1.2%, compared to 2.0% a year ago. $33,266 $28,724 $27,672 $26,220 $21,745 60.36% 71.08
Slide 12: 2014 Initiatives Building Shareholder Value
12 2014 Initiatives Building Shareholder Value • Successful integration of merger agreement with The BANKshares , Inc. • Continued reduction of legacy costs and operational expense • Prudent investment of balance sheet liquidity • Focus on customer acquisition and diversified lending Growing Our Fra
Slide 13: Appendix
13 Appendix
Slide 14: Net Income - GAAP to Non-GAAP Reconciliation
14 Net Income - GAAP to Non - GAAP Reconciliation: Presented below is net income excluding adjustments for merger related legal and professional fees and other non core expenses. The Company believes that these results of operations are a more meaningful depiction of the underlying fundamentals of i
Slide 15: Non-Interest Expense - GAAP to Non-GAAP Reconciliation
15 Non - Interest Expense - GAAP to Non - GAAP Reconciliation: Presented below are non - interest expenses excluding adjustments for merger related legal and professional fees and other non core expenses. The Company believes that these results of operations are a more meaningful depiction of the un
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