Seacoast Banking Corporation Of Florida · NASDAQ:SBCF
Seacoast Banking Corporation Of Florida — Seacoast Banking Corp of Florida — Q2 2023 Earnings Presentation
41 slides from Seacoast Banking Corporation Of Florida's earnings presentation, Sep 6, 2023
Slide 1: Second Quarter 2023 Investor Presentation
INVESTOR PRESENTATION SECOND QUARTER 2023
Slide 2: Forward-looking statements
2SECOND QUARTER 2023 INVESTOR 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, stateme
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: Seacoast company overview
5SECOND QUARTER 2023 INVESTOR PRESENTATION • $15.0 billion in assets as of June 30, 2023, operating in the nation’s fastest growing and third most populated state • Strong presence in Florida’s most attractive markets ▪ #1 Florida-based bank in Orlando MSA ▪ #1 Florida-based bank in Palm Beach count
Slide 6: Proven Track Record of Successful and Value-Added Integrations
6SECOND QUARTER 2023 INVESTOR PRESENTATION PROVEN TRACK RECORD OF SUCCESSFUL AND VALUE-ADDED INTEGRATIONS
Slide 7: Outlook
AGENDA OUTLOOK
Slide 8: Executing Our Balanced Growth Strategy
8SECOND QUARTER 2023 INVESTOR 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 a
Slide 9: Company Performance
AGENDA COMPANY PERFORMANCE
Slide 10: Second quarter highlights
10SECOND QUARTER 2023 INVESTOR PRESENTATION • Seacoast successfully completed the Professional Bank conversion, wrapping up a significant period of M&A activity that has moved Seacoast beyond the $10 billion asset hurdle and definitively positioned Seacoast as Florida’s Bank. • Net income increased
Slide 11: Net Interest Income
11SECOND QUARTER 2023 INVESTOR PRESENTATION Net Interest Income ($ in th ou sa nd s) $81,764 $88,399 $119,858 $131,351 $127,153 3.38% 3.67% 4.36% 4.31% 3.86% 3.26% 3.58% 4.01% 3.78% 3.43% Net Interest Income Net Interest Margin NIM, excluding accretion on acquired loans 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23
Slide 12: Noninterest Income
12SECOND QUARTER 2023 INVESTOR PRESENTATION $17,264 $20,221 $21,752 $3,408 $4,242 $4,560 $4,255 $4,694 $5,066 $2,774 $3,063 $3,318$932 $426 $576$4,546 $4,779 $5,004$1,349 $1,916 $2,068 BOLI Other Income Insurance Agency Income Mortgage Banking Wealth Management Interchange Income Service Charges 2Q'
Slide 13: A Continued Focus on Building Wealth Management
13SECOND QUARTER 2023 INVESTOR PRESENTATION $708 $793 $870 $1,025 $1,158 $1,161 $1,239 $1,228 $1,162 $1,228 $1,387 $1,518 $1,578 2Q'20 3Q'20 4Q'20 1Q'21 2Q'21 3Q'21 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Assets Under Management ($ in millions) 28% CAGR A Continued Focus on Building Wealth Managem
Slide 14: Noninterest Expense
14SECOND QUARTER 2023 INVESTOR PRESENTATION $51,663 $81,925 $83,992 $31,542 $51,094 $50,511$5,623 $8,002 $9,318 $6,347 $9,001 $9,911 $1,565 $2,687 $2,397 $5,887 $9,698 $9,739 Other Expense Legal & Professional Occupancy & Telephone FDIC Assessment Data Processing Cost Salaries & Benefits 2Q'22 1Q'23
Slide 15: Efficiency Ratio Trend
15SECOND QUARTER 2023 INVESTOR PRESENTATION Efficiency Ratio Trend 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 50% 62% 48% 53% 55% 60% 54% 62% 56% 57% 63% 65% 67% 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 50% 55% 49% 52% 53%
Slide 16: Disciplined Approach to Lending in a Strong Florida Economy
16SECOND QUARTER 2023 INVESTOR PRESENTATION $6,542 $6,691 $8,145 $10,134 $10,118 4.29% 4.45% 5.29% 5.86% 5.89% 4.13% 4.31% 4.80% 5.17% 5.33% Yield Excluding Accretion on Acquired Loans Reported Yield Total Loans 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Total Loans End-of-Period ($ in millions) Disciplined Appr
Slide 17: Diverse Loan Portfolio
17SECOND QUARTER 2023 INVESTOR PRESENTATION Commercial Real Estate - Owner Occupied $1,669,369 16% Construction and Land Development $794,371 8% Consumer $272,082 3% Commercial & Financial $1,610,895 16% Commercial Real Estate - Non-Owner Occupied $3,370,211 33% Residential Real Estate $2,396,352 24
Slide 18: Loan Portfolio Mix
18SECOND QUARTER 2023 INVESTOR PRESENTATION At June 30, 2023 Loan Portfolio Mix CRE-Retail, 10.92% CRE-Office, 6.18% CRE-Multifamily 5+, 5.07% CRE-Hotel/Motel, 4.20% CRE-Industrial/Warehouse, 3.65% CRE-Other, 3.30% OOCRE-Office, 4.85% OOCRE-Other, 11.65% Construction & Land Development, 7.85% Commer
Slide 19: Non-owner Occupied CRE in Florida's Strongest Markets
19SECOND QUARTER 2023 INVESTOR PRESENTATION Non-owner Occupied Commercial Real Estate in Florida’s Strongest Markets Non-owner Occupied Commercial Real Estate by MSA Balance ($ in thousands) Balance % of Total Loans Miami / Dade County $ 656,823 6.49 % Orlando-Kissimmee, FL MSA 472,068 4.67 Ft. Laud
Slide 20: Non-owner Occupied Commercial Real Estate
20SECOND QUARTER 2023 INVESTOR 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 $ 1,104,772 10.92 % $ 2,053 $ — $ — 52 % Office 625,562 6.18 1,677 231
Slide 21: Allowance for Credit Losses and Purchase Discount
21SECOND QUARTER 2023 INVESTOR 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 $ 794,371 $ 6,960 0.88 % $ 11,882 1.50 % Owner Occupied Commerc
Slide 22: Continued Strong Asset Quality Trends
22SECOND QUARTER 2023 INVESTOR PRESENTATION Net Charge-Offs (Recoveries) $3,027 $841 $3,188 $705 0.13% 0.05% 0.01% 0.14% 0.03% NCO NCO/Average Loans 2020 2021 2022 1Q'23 (% annualized) 2Q'23 (% annualized) ($ in thousands) Nonperforming Loans and Classified Assets $36,110 $30,598 $28,843 $50,787 $48
Slide 23: Investment Securities Performance and Composition
23SECOND QUARTER 2023 INVESTOR PRESENTATION Investment Securities Performance and Composition Unrealized Loss in Securities as of June 30, 2023 (in thousands) Amortized Cost Fair Value Net Unrealized Gain /(Loss) Δ from 1Q’23 Available for Sale Government backed $ 41,283 $ 40,974 $ (309) $ (245) Age
Slide 24: Distinctive Deposit Franchise
24SECOND QUARTER 2023 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $9,189 $8,765 $9,982 $12,310 $12,283 1.75% 3.25% 4.50% 5.00% 5.25% 0.06% 0.09% 0.21% 0.77% 1.38% Total Deposits Fed Funds Cost of Deposits 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Distinctive Deposit Franchise Supported by Attra
Slide 25: Granular, Diverse Deposit Base
25SECOND QUARTER 2023 INVESTOR PRESENTATION Deposits End-of-Period ($ in millions) $9,189 $8,765 $9,982 $12,310 $12,283 Transaction Accounts Savings Money Market Time Deposits 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 Granular, Diverse and Relationship Focused Deposit Base Noninterest demand deposits represent
Slide 26: Liquidity Sources vs Uninsured Deposits
26SECOND QUARTER 2023 INVESTOR PRESENTATION Liquidity Sources vs Uninsured Deposits Cash and Borrowing Capacity vs. Uninsured Deposits ($ in millions) $6,412 $3,476 $728 $2,566 $375 $1,779 $300 $664 Borrowing Capacity + Cash Uninsured and Uncollateralized Deposits Total Cash & Borrowing Capacity = $
Slide 27: Capital and Returns
27SECOND QUARTER 2023 INVESTOR PRESENTATION $16.66 $15.98 $14.69 $14.25 $14.24 $21.65 $20.95 $22.45 $24.24 $24.14 Tangible Book Value Per Share Book Value Per Share 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 9.7% 9.8% 9.1% 8.4% 8.5% 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 17.7% 17.5% 15.8% 14.6% 14.7% 16.8% 16.5% 14.8% 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
29SECOND QUARTER 2023 INVESTOR PRESENTATION Appendix
Slide 30: Quarterly Trend
30SECOND QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend Six Months Ended (Amounts in thousands) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 2Q'23 2Q'22 Commercial pipeline at period end $ 217,574 $ 297,380 $ 395,652 $ 530,430 $ 476,693 $ 217,574 $ 476,693 Commercial loan originations 317,378 321,665 489,605 3
Slide 31: Florida's Economic Strength Continues
31SECOND QUARTER 2023 INVESTOR 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 a
Slide 32: Florida Population Trends
32SECOND QUARTER 2023 INVESTOR 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
Slide 33: Seacoast's Approach to Customer Analytics Is a Unique Advantage
33SECOND QUARTER 2023 INVESTOR PRESENTATION Seacoast’s Approach to Customer Analytics Is a Unique Advantage
Slide 34: Unique Approach to Growing Customer Value
34SECOND QUARTER 2023 INVESTOR PRESENTATION Unique Approach to Growing Customer Value
Slide 35: Successful online and mobile upgrade
35SECOND QUARTER 2023 INVESTOR 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 up
Slide 36: Building a Modern Technology Stack
36SECOND QUARTER 2023 INVESTOR 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 37: Explanation of Non-GAAP Financial Measures
37SECOND QUARTER 2023 INVESTOR 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, noninte
Slide 38: Quarterly Trend
38SECOND QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Net Income $ 31,249 $ 11,827 $ 23,927 $ 29,237 $ 32,755 Total noninterest income 21,576 22,445 17,651 16,103 16,964 Securities losses/(gains), net 176 (107) (18) 362
Slide 39: Quarterly Trend
39SECOND QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Adjusted Noninterest Expense $ 83,992 $ 81,925 $ 70,431 $ 56,899 $ 51,663 Foreclosed property expense and net gain (loss) on sale 57 (195) 411 (9) 968 Provision for
Slide 40: Quarterly Trend
40SECOND QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Return on Average Assets (ROA) 0.84 % 0.34 % 0.78 % 1.10 % 1.21 % Impact of removing average intangible assets and related amortization 0.22 0.18 0.16 0.07 0.08 Retu
Slide 41: Quarterly Trend
41SECOND QUARTER 2023 INVESTOR PRESENTATION Quarterly Trend (Amounts in thousands except per share data) 2Q'23 1Q'23 4Q'22 3Q'22 2Q'22 Yield on Loans1 5.89 % 5.86 % 5.29 % 4.45 % 4.29 % Impact of accretion on acquired loans (0.56) (0.69) (0.49) (0.14) (0.16) Yield on loans excluding accretion on acq
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