Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Q4 2022 Earnings Presentation
28 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Jan 27, 2023
Slide 1: Earnings Presentation Fourth Quarter 2022
EARNINGS PRESENTATION FOURTH QUARTER 2022 2022
Slide 2: Cautionary Notice Regarding Forward-Looking Statements
Cautionary Notice Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning, and protections, of Section 27A of the Securities Act anticipated; the Company’s ability to identify and address increased cybersecurity risks, including as a result of
Slide 3: Valuable Florida Franchise, Well-Positioned with Strong Capital
Valuable Florida Franchise, Well-Positioned with Strong Capital SEACOAST BANK FOOTPRINT1 Jacksonville MSA • $12.1 billion in assets as of • Market Cap: $2.2 billion as of December 31, 2022, operating in the December 31, 2022 nation’s third-most populous state • Diverse customer base concentrated • S
Slide 4: Florida's Continuing Economic Strength
Florida’s Continuing Economic Strength Attracted by Florida’s favorable business climate and lower taxes, individual and business migration to Florida has surged. The significant inflow of wealth has positively impacted the state’s fiscal and economic health. Domestic Wealth Migration, 2020 14.6% #1
Slide 5: Fourth Quarter 2022 Highlights
Fourth Quarter 2022 Highlights Comparisons are to third quarter of 2022 unless otherwise stated • Net interest margin expanded 69 basis points to 4.36%. • Continued strong asset quality trends, with Excluding the effects of accretion on acquired loans, net nonperforming loans representing 0.35% of t
Slide 6: Significant Expansion in Net Interest Margin and Net Interest Income
Significant Expansion in Net Interest Margin and Net Interest Income Net Interest Income Net Interest Margin NIM, excluding PPP and accretion on acquired loans $119,858 ($ in thousands) $88,399 $81,764 4.36% $76,639 3.67% $72,412 3.38% 3.16% 3.25% 4.01% 3.57% 3.24% 2.91% 3.05% 4Q'21 1Q'22 2Q'22 3Q'2
Slide 7: Noninterest Income
Noninterest Income Noninterest Income ($ in thousands) Adjusted Noninterest Income1 ($ in thousands) $18,706 $18,330 $1,295 $17,651 $17,633 $16,103 $1,526 $1,295 $16,465 $1,526 $1,363 $1,363 $6,284 $4,167 $5,908 $4,149 $3,932 $4,294 BOLI 2 $426 BOLI 3 $426 Other Income $434 Other Income $434 Mortgag
Slide 8: Noninterest Expense
Noninterest Expense Noninterest Expense ($ in thousands) Adjusted Noninterest Expense1 ($ in thousands) $91,510 $70,431 $8,364 $7,439 $9,174 $2,683 $56,899 2 $8,586 $8,213 Other Expense $61,359 Other Expense 2 $9,277 Legal & Professional Occupancy & Telephone $9,918 Legal & Professional $48,309 $9,7
Slide 9: Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control
Efficiency Ratio Trend - Continued Focus on Disciplined Expense Control GAAP - Efficiency Adjusted - Efficiency1 Sabal Palm Bank and Drummond Freedom Bank Florida Business Bank Bank and Apollo Bank First Bank of the Palm Legacy Bank Beaches of Florida Palm Beach Community and North Star Bank Acquisi
Slide 10: Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio
Seacoast's Lending Strategy Sustains a Diverse Loan Portfolio At December 31, 2022 ($ in thousands) Construction & Land Development and CRE Loans to Total Risk Based Capital Paycheck Protection Program 271% Peers $4,590 Construction and 64% Consumer <1% $286,587 Land Development $587,332 210% 4% SBC
Slide 11: Disciplined Approach to Lending in a Strong Florida Economy
Disciplined Approach to Lending in a Strong Florida Economy Total Loans End-of-Period ($ in millions) $8,145 Loans outstanding, excluding acquisitions, increased $240.8 million, or 14% annualized. Total loan originations were $649 million, $6,691 including $490 million in commercial $6,451 $6,542 or
Slide 12: Investment Securities Performance and Composition
Investment Securities Performance and Composition $1,707 $1,801 $1,861 $1,872 • Portfolio yield increased 41 basis points to 2.77% from 2.36% in the prior quarter. $1,644 2.77% ($ in millions) • AFS securities ended the quarter with a net unrealized loss of $247.6 million 2.36% compared to a net unr
Slide 13: Strong Deposit Franchise Supported by Attractive Markets
Strong Deposit Franchise Supported by Attractive Markets Deposits End-of-Period ($ in millions) $9,982 • Continued focus on organic growth and $9,244 $9,189 $523 relationship-based funding, in combination with our innovative analytics platform, supports a well- $531 $468 $8,765 $3,050 diversified, l
Slide 14: A Continued Focus on Building Wealth Management
A Continued Focus on Building Wealth Management Assets Under Management ($ in millions) $1,387 Assets under management totaled $1.4 billion at $1,239 December 31, 2022, increasing 12% from December 31, 2021. This is a result of the wealth management team’s continuing success at winning business with
Slide 15: Allowance for Credit Losses and Purchase Discount
Allowance for Credit Losses and Purchase Discount Loans Allowance for ($ in thousands) Outstanding Credit Losses % of Category Purchase Discount % of Category Construction and Land Development $ 587,332 $ 6,464 1.10 % $ 11,485 1.96 % Owner Occupied Commercial Real Estate 1,478,302 6,051 0.41 19,055
Slide 16: Continued Strong Asset Quality Trends
Continued Strong Asset Quality Trends ($ in thousands) Nonperforming Loans Net Charge-Offs (Recoveries) NCO NCO/Total Loans NPL NPL/Total Loans $30,598 $28,843 0.10% $782 $26,209 $26,442 $570 0.52% $21,464 $79 ($124) $103 0.41% 0.40% 0.04% 0.04% 0.35% 0.32% 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 4Q'21 1Q'22
Slide 17: 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 $22.40 $22.15 $21.65 $22.45 11.1% $20.95 9.9% 9.7% 9.8% $17.84 $17.12 9.1% $16.66 $15.98 $14.69 4Q'21 1Q'22 2Q'2
Slide 18: Tracey L. Dexter, Investor Relations
Tracey L. Dexter Executive Vice President Chief Financial Officer (772) 403-0461 INVESTOR RELATIONS NASDAQ: SBCF
Slide 19: Appendix
Appendix FOURTH QUARTER 2022 EARNINGS PRESENTATION 19
Slide 20: Low Historical Deposit Beta Coupled with Favorable Deposit Composition
Low Historical Deposit Beta Coupled with Favorable Deposit Composition Total 3Q15 to 2Q19 Deposit Beta1 equal to 28% Deposit Mix 3.00% 24.1% 21.6% 2.50% 2.50% 2.50% 24.4% 2.28% 22.5% 2.01% 5.7% 2.00% 11.2% 1.80% 10.1% 10.5% 1.53% 38.1% 31.7% 1.50% 1.30% 1.25% 1.00% 1.04% 1.00% September 30, 2015 Mar
Slide 21: Loan Production and Pipeline Trend
Loan Production and Pipeline Trend Quarterly Trend Twelve Months Ended (Amounts in thousands) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Commercial pipeline at period end $ 395,652 $ 530,430 $ 476,693 $ 619,547 $ 397,822 $ 395,652 $ 397,822 Commercial loan originations1 489,605 340,438 461,855 372,98
Slide 22: Apollo Bancshares, Inc. Acquisition
Apollo Bancshares, Inc. Acquisition Fair Value of Assets and Liabilities Acquired Purchase Price (In thousands) 10/7/2022 (In thousands, except per share data) 10/7/2022 Assets: Number of Apollo Bancshares, Inc. common shares outstanding 3,766,412 Cash and cash equivalents $ 41,427 Per share exchang
Slide 23: Drummond Banking Company Acquisition
Drummond Banking Company Acquisition Fair Value of Assets and Liabilities Acquired Purchase Price (In thousands) 10/7/2022 (In thousands, except per share data) 10/7/2022 Assets: Number of Drummond Banking Company common shares 98,846 outstanding Cash and cash equivalents $ 39,129 Per share exchange
Slide 24: 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 trends methods other than Generally Accepted Accounting Principles and facilitate comparisons with the performance o
Slide 25: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Net Income $ 23,927 $ 29,237 $ 32,755 $ 20,588 $ 36,330 $ 106,507 $ 124,403 Total noninterest income 17,651 16,103 16,964 15,373 18,706 66,091 70
Slide 26: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Adjusted Noninterest Expense $ 70,431 $ 56,899 $ 51,663 $ 50,705 $ 48,309 $ 229,698 $ 182,399 Foreclosed property expense and net (loss)/gain on
Slide 27: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Twelve Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Return on Average Assets (ROA) 0.78 % 1.10 % 1.21 % 0.79 % 1.43 % 0.96 % 1.33 % Impact of removing average intangible assets and related 0.16 0.0
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Quarterly Trend Six Months Ended (Amounts in thousands except per share data) 4Q'22 3Q'22 2Q'22 1Q'22 4Q'21 4Q'22 4Q'21 Net Interest income1 $ 119,858 $ 88,399 $ 81,764 $ 76,639 $ 72,412 $ 366,660 $ 276,541 Accretion on acquired loans (9,710) (2,242) (2,720) (3,717) (
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