SBCF - Earnings call transcript Q1 2021 | Seacoast Banking Corporation of Florida

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Operator

Welcome to the Seacoast Banking Corporation’s First Quarter 2021 Earnings Conference Call. My name is John, and I’ll be your operator for today’s call.

Before we begin, I’ve been asked to direct your attention to the statement contained at the end of the Company’s press release regarding forward-looking statements. Seacoast will be discussing issues that constitute forward-looking statements within the meaning of the Securities and Exchange Act, and its comments today are intended to be covered within the meaning of that act. Please note that this conference is being recorded. turn of over Seacoast now President Chuck will CEO and Bank. I the to call Shaffer, And Mr. Shaffer, you may begin.

Chuck Shaffer

Thank you morning. this all for joining us

of record expressing As by Officer; producing which quarter Executive open we XXXX in by we relationships, marketplace. morning Denny is gratitude another seacoastbanking.com. comments, Hudson, to the our satisfaction continue this Chief provide share quarter Seacoast to Chief Digital Dexter, focusing customer first and growing Financial With will me will earnings Lee, expanding and be customer Chairman. returns The for team results. generate my the can reference value-creating driving quartile deck, associates I best-in-class Florida a market Tracey found Seacoast consecutive Jeff at slide top our on Officer;

seasonally earnings a During $X.XX, of of posting adjusted quarter, Company the that expenses. the quarter share is payroll XX.X% on an efficiency basis per by an higher ratio in and adjusted benefits while generated impacted

Asset process on move the you swell. reopened no sheet. a a impact quality, have The and venues organic state to capital to in fortress generation which strategy state growth a when approximately strong, dividend, our and fully and ratio, on growth, believe payout is peers, forward, from Board bolstering and consider the Florida of generate levels will now balance population as all continue return hotels this $X.XX to to rapidly with to other line capital source we our the our week, the or introduction with growth to return meaningful our represents approved of a vaccination capital generally pre-COVID our efficient providing of XX% acquisitive continues This liquidity resulting path are particularly new the shareholders. forward We restaurants, continues Company’s hospitality operations. moving

primarily reporting key state most was a arising XXXX. labor and recently, in classes rate demand shortages. multiple reported from Our unemployment which robust the The and asset issues chain X.X%, borrowers industries improve, and where state’s was on with is at are across supply to basis comparative continues

rising the in markets serve. we to metro to population, continue demand we Given and particularly expect the conditions primarily improve, economic increasing

the across state, evidence emerging increasing million $XXX with all a of at unemployment quarter lines pipeline saw end. Given our and credit have the low policy overall significant quarter-over-quarter recovery, pipelines occurring guidelines. increased and returned total underwriting recovery the business we conservative clear pre-pandemic of to V-shaped loan to We our XX% across

late-stage Looking $XXX ended quarter. few from a commercial more at And prior the number, pipeline, early-stage XX% we from has overall includes which we complete increased commercial specifically the XX% this deals, published don’t ago. pipeline, the million, generally at although publish quarters the quarter up

the estate, acceleration forecast, pre-COVID loan real this of balance across investments of equipment rapid over to inventory, economy a business units, holding been to economy. last businesses they on and with slow expanding our along all and amount an half been and return assuming to Florida on in forecast the two pipelines XXXX. continue are these date, make return in borrowers have investments cash to significant investing their C&I making their To sheets. growth Given to the quarters loan back we In in our the levels increasing we

partnering team generated of profitably, other to growth mortgage increasingly in recorded in of years. of the with That in forward $XXX doing seeing up valuable blockbuster net prior ended quarter of incredibly our to another demand. they exited the business million, $XXX with pipeline the clients an reaching XX Florida done opportunity refinance on CECO but a purchase the $XXX The our in building opportunities our result the the high inventory our job team, both wealth pipeline model significant generating remarkable continued million expanded quarter, I’m other and building growth We value quarter commercial originators XX-XX high-quality a has worth a team and team this primarily collecting The growth XXXX income. an proud achievement the our refinance million in in looking of growth in from first was and only a mortgage levels slowing coming quarter We increase management generating recording $X.X shareholders. with in and and portfolio AUM cross-sell average exit the clients the Florida assets between and portfolio. with the entering $X achieving $X of across crossing fee-based with quarter’s correspondent and split for despite had of fee revenues volume. generate AUM most the pipeline. pipeline milestone at to million, family We products. under Florida so depository partner basis tight are in with on for points management profitable We has the focus XXXX. milestone office billion billion Not team with

metrics asset moving strong NPA NPL quality quarter-over-quarter. Our remained ratios with favorably and

Legacy points improve only basis portfolio’s million. the only are we to Our were portfolio loan to total the the loans use to to in outstandings, during our continues is management outstandings X deposit ahead material credit the The on to and see and X.X% in Moody’s on or model continue announce income. state update. discussions we general, Net of improvement deferred and down in the outlook of horizon. no of quarterly and Bank net the our quarter, with issues $XX show performance CECL and pleased the U.S. loans they economy transaction are charge-offs indicate were with on each continues forecast model quarter, the and in We excited

markets to impressive Company performance, in another disciplined the We XXXX, opportunities and the we in in franchise key quarter August value. potential periods. our further convert growth of close our And and continue generating Legacy expand expect recorded see to early and to coming to franchise conclude,

Our improving to and market digital the relationships, products manner and disciplined by more goal markets our experiences growing to walk our driving services share increasing across efficiently turn value-creating continue now remains call the greater in competition. our franchise over productivity results. customer delivering than and by to on a Tracey I’ll to focusing financial through

Tracey Dexter

on Good of consolidation million Chuck. charges, an was quarter-over-quarter. attention XX% you, basis, to $XX.X a an morning, Directing the with quarter basis, net a On M&A was which start Earnings isolated your income first let’s adjusted GAAP Thank everyone. slide and Net excludes increasing record results, increase XX% branch income X. million, quarter-over-quarter. a for quarter $XX.X ROTA a On to adjusted basis, quarter. X.XX% basis, quarter in share basis basis, compared $X.XX an GAAP from on tangible the share were $X.XX per was on per return prior ROTCE assets XX.XX%. reported common $X.XX. first XX.XX% adjusted and On earnings $X.XX to we equity. return was and tangible On GAAP increased X.XX% on first an

to quarter year-over-year. results. common Loan our our up $X original quarter. mentioning XX.X%, to loans basis this originated on mortgage per deposits end grow XX.X% first economic We tangible assets from quarter’s XX XX% program declined new The book to billion wealth As increased increase. in XX pipelines team demand. Tangible and increased the adjusted total the equity with bolstered the cost PPP it’s impressive $XXX the be base, to begins fourth million renewed if quarter’s banking continues increasing of recovery increased prior forgiveness drive points $XXX of to XX% of from illustrative Strong further points. The in value management $XX.XX program of adjusted common under from growth a quarter to $XX.XX, basis from we pace in tangible million that Florida’s of last an milestone quarter, management the in interchange last increased return worth equity asset target would X%, revenue AUM as loans increase tangible capital to and under was under continue saw AUM. an ratio share and surpass

the million, Broward Palm fast-growing In which of quarter’s the we be Beach $XXX of earned opportunities exciting in life market. This offering originations in presence counties, in loan. $X.X the a resulted South of Florida upcoming totaling us will Florida, March, of Bank new recognized deep the million which Legacy and over has fees acquisition announced

announce June XXth We’re on that be Directors of record to to our Board a also pleased which June shareholders payable will approved XXth. of on $X.XX dividend, cash

expect rates points the to net of basis rates. net increasing to was sheet Turning position. of equivalent to X.XX%. deploy prudently to growth slide and net and that liquidity the basis basis of second impact the the be in decline we patient fully X. margin to in Net securities margin the on at approximately liquidity interest expectation estimate additions points. the income decreased cash quarter, interest X% The on result million, low $XXX during over but kept X interest will X our the period declined We’ve in changes more balance make will of and responsive on of expect this with time portfolio. to the We million the we’re largely $XX.X cash excess long-term Again, approximately a outlook, tax sequentially

loans, of lower excess on fees resulting points quarter, in prepayments and quarter basis fourth combination in million in reported on lower we result have XX basis to PPP quarter. the payoffs to new discount been the impact to XX X.XX%, accretion programs the securities purchase in partially first loans interest with net would The was compared the quarter. on purchases. during in X The This was higher the the the removing fourth X.XX%, in margin points on the margin declined interest yields the $X.X of the quarter first million by program. the elevated So, PPP at In original approximately of to basis forgiveness offset quarter. lower the yield liquidity new compared quarter, in the first prior and accretion flat growth of points net $X.X from

quarter Excluding the basis X basis X.XX% the of impact discounts, X and of points net basis time our the deposits. accretion of to first fourth effects decreased of of PPP and The in XX the interest accretion quarter, excluding purchase basis low X.XX%. continued PPP the points to to to points reflecting margin, discounts, due purchase from The yields decreased by down environment. in deposits cost deposits from points loan decreased interest-bearing X.XX% rate XX XX repricing points and overall basis and

the margin will to expect net the the we effect excess and decline though single to purchase upper to of the continue liquidity funding We to cost Looking quarter, continue expect deposits second forward accretion, lower last the in second its with we liquidity, to modestly we period. growth moderates. expect materializes and in the bound margin, reach consistent the interest excess the gave excluding PPP rates of digits. Also, ahead of will continue loan quarter, given decline that curve to we assuming to quarter, the second effect see quarter, lower believe during the in offsetting guidance the

Adjusted $X.X million Moving $XX.X increase X. gains million to and prior losses, or noninterest $X.X and previous XX% which million, of from slide year of quarter quarter. excludes an was increase the or the income, an XX% securities from

were and team Our rates the expectations the in the a revenues Interchange interest our higher the results. of the loans with mortgage refinancings quarter, first $X.X million XX% the volume banking low business compared quarter, exceeding with purchases quarter. at our market, new mortgage million reached Florida recent of rates home to spend. inventories, first continues XX% the end Despite pipeline the transaction approximately to $X.X revenue, of outstanding to a quarter. card first end closer were XX-XX ratio fourth increases strong housing At in deliver purchases record and capitalize refinancings and level per in in to low higher on of continues of and to again, on

XXXX, by approach, We’re under this team, team wealth and quarter. $X our AUM billion by the has an with of AUM consistent milestone in quarter passed And in grew when XX% XX%. remarkable year-end management. this proud With a grown to relationship-based especially who compared first management determined assets incredible a

were includes expect on similar collections the were These in credit team, acquisition, at other million through and XXXX, in in periods. our were activity resolved future of $X.X that collection income value. we of acquired assigned and the no diligence quarter time First loans zero

the second to Looking expect non-interest be a approximately likely is overall million. $XX.X income ahead, moderate, mortgage the in and we during of activity $XX.X to to we range believe quarter million

million basis. addressing of quarter to compared quarter. an X. by Salaries the in a the guidance, noninterest litigation professional expense, fourth reflects and totaled the Legal Moving and quarter $XX.X The all increased contributions. higher the $X.X Adjusted the on an fourth seasonally prior during with none in quarter. the compared $X.X and positive XXX(k) from increase The prior slide expense payroll recovery in Within benefits taxes million, line of the other million fees increased REO $X incurred of first on increase adjusted properties changes and XXXX. fourth drove and quarter quarter to benefit fourth write-downs million comparison. included to increased quarter expenses

expect maintain ahead, as to do. Looking expense we we our discipline, always

We in million to quarter the intangible expect the $XX.X of expenses, assets, excluding remain second million. range $XX.X amortization of to

in full the the X. year low-XXs. slide quarter first ratio guidance expenses efficiency to Adjusted ratio the employee provided quarter, to reflecting noninterest XXXX be impact increased benefits. the we last Moving higher the XX%, we Maintaining and in to efficiency expect seasonal of

year-over-year Turning to $X.X outstanding to X% slide billion. increased XX. Loans

loans, under X%. or $XX PPP outstandings quarter total this just decreased million Excluding by

XX% As for pipeline increased. that $XX to from is the in loan were to at and XX% March now $XX you XXst, in appears an million an increase increase higher quarter, the last has well-established, to for XX% million pipelines residential consumer quarter the $XXX it commercial loans portfolio prior including recovery million Florida’s of and economic increase $XX pipelines XXst. know, At demand pipelines than March of in million, an

adding strong results markets to generating in and Across we’re program, residential our products, and Florida’s in seeing increase with the correspondent and demand opportunities. recovery. line pipeline, With a see the cross-sell for generating economic we’re we’re Florida-focused loan portfolio portfolio growth beginning also the opportunities where increased of relationships

second sheet. we and been loans, to estate return to purchases, these and the with inventory on businesses guidance, their and and In their they’ve expect accretion an cash our return PPP excluding discounts, of prior make guidance our date, into expanding real rate the half The been growth C&I this forward, lower of economy. decreased making to on slow Looking X.XX% loan a XXXX. reiterating balance overall in amount To we’re are holding continue investments have environment. borrowers to investing significant purchase of levels yield assuming to pre-pandemic equipment in to

quarter, decline originations. we add-on last said change yields we modestly with loan the second and increased As the expect lower environment further in assuming yields, no quarter in to rate

Turning XX. slide to

size Overall, XX% second who an $XX,XXX, opened of average program draws the loans second loan you first-time of January, with the and Most PPP know, outstanding our As had first all in in program, $XX,XXX fees, loan We $XXX.X and in $XXX,XXX. XXst participated accommodating XX% borrowers at of PPP originated count, from so million this well. seeking forgiveness, still during original Of have Borrowers the quarter, continue we thus renewed in $XXX open, program, that, million as since into million the original new million we’ll $XX.X future million recognized are to the is second be processed $XXX originate in and and we’ve in loans SBA the start of PPP remaining and to quarter. PPP fees. in our draw renewed loans deferred program. PPP round both the again borrowers with the fees were of we’ve loans median for borrowers, March $XX.X net the in by are program quarter of recognized size PPP of under far borrowers. million, forgiveness periods. the collected program $XX.X

concentration well slide the XX, to levels exposure highlighting guidance. diversity our of and regulatory Turning below

PPP, of estate commercial XX% and residential across estate real Our real loans represents is Owner-occupied equity portfolio. their real in estate of is that portfolio, the loan XX% portfolio, distributed asset represents investments lower estate by portfolio secured values. Stabilized classes. to commercial broadly various meaningful borrowers excluding outstanding. income-producing the XX% comprises of commercial have and of real with XX% Approximately our

with loans For capital, to lower $XX most managed respectively. and represented continued have loans portfolio payment to At in risk-based has XXst, estate have peer development levels well we real our on Those years, remained Performance previously construction of regulatory than payment below in keep consistently strong, provided only accommodations and with XX% we loans loans guidance. XXX% and active group. commercial and land accommodations. and March million our have decline are that

is commercial portfolio over average with categories diverse an $XXX,XXX. PPP, loan loan Our across of size, distributed just and excluding broadly

slide Faster the resulted largely XX in the quarter of to portfolio due first the steepening gain securities and of prepayments quarter, in lower-yielding unrealized the for The decline curve. Turning the purchases portfolio. decreased yield in points. basis during yield to the portfolio a X net in

the During we and sale $XXX had for profiles bonds that reasonable quarter, to held maturity, which first government to million classification longer-duration U.S. from reclassified included agency available yields. the

new investments with risk extension shorter durations. making carefully that We’re lower have bonds in

being net Looking of $XXX forward will on and quarter, higher to additions we’re to portfolio, in rates prospect put cash we prudent of the this the back given second how work much expect million.

XX. an of increase balances. by XX slide Transaction quarter-end, higher deposits driven fewer deposits stimulus quarter-over-quarter to Deposits Turning driving of slide combination $XXX other the XX, year XX% center have to billion, XX% deposits XX% customer year-over-year. $XXX largely And basis the compared two total and an one basis increase represent banking quarter, lower accounts $X.X cost deposits of of by billion outstandings ago, and fourth were per the or of grown $XXX $X.X million At million PPP funds, compared X were points. on was year-over-year, million branches. higher and points to and to

to in digits. we reaching cost expect second decline the quarter, of ahead, to single the deposits continue Looking high the

into migrate a from X.XX% loss is cycle. XX. reflects credit of on improvement which under of loans that PPP, prior CECL the losses, excluding X.XX%, quarter, reflection conditions. economic credit expected losses in in for Moving through our The loans, includes allowance our will Coverage lifetime down to estimate some slide expectation the

feel we allowance, also have an to that we a what earned discount adjustment million yield. the in of will loans life those $XX.X level prudent is to addition note as of be purchase In that over

Turning accommodations. million to level to total risk-based $XX.X XXst. previously earlier, remained And slide and Net in of payment prudent are with the active XX% charge-offs payment have decreased to XXst accommodations non-performing in overall were said $X.X $XXX,XXX, X loans, Criticized million, The is XX. continue XXXX. by loans at to credit performance strong. million, loans million March for loans we’ll $XX.X of flat basis of has We as On provided PPP and a and asset capital allowance, first only I the allowance coverage, quality, loans excluding estimate allowance at only maintain with throughout representing loans. X.XX%. losses were credit on and strong, quarter measures X.XX% we total at points decreased level this of revisit March $XX

Turning to XX. slide

among capital prior which peer and look each over to the of book tangible creation. the driving turn the in been Tangible this liquidity book quarter basis. first increasing opportunities and in questions XX.X% the Our adjusted will capital, to total ratio optimize quarter. to Tier The back value over was finally, from slide with back risk-based per is positioned We today. share Chuck. was call increased equity XX% beginning increase ratio very today, an forward be shareholder we’ve our to the growth highest to year-over-year. looking on a the I’ll asset common capital XX.X%, of strong. has value strategic strong achieved XX, of to we an tangible March Return and of growth XX%, group. We’ve continues franchise and value your end the a our share tangible X at XX.X% capital tangible XXXX at was common The Florida rate on equity on of annual economy. from execute ratio position XX% $XX.XX, of compounded And this foundation per strong the initiatives on consistently XX,

Chuck Shaffer

prepared few take Thank operator, we’re And you, Tracey. questions. a to

Operator

is from Moss. Please Steve Instructions] ahead. [Operator first go question Our

Steve Moss

it’s bit just from coming a on I pipeline maybe little more with your sounds in build, Maybe color guess, more here. -- the it starting of loan borrowers. morning. of Good C&I growth terms just like

second more color low above little double in high of perhaps rates also, what XXXX? half the of possibility and come a there, growth seeing growth the Just single digit, the digit maybe type

Chuck Shaffer

borrowers that puts heavily through businesses, which you way loan lot time you on at and to a portfolio, into that I need primarily takes would little and there seen more pipeline be is before you And cases, to the And practice, tend of we attorneys, a tremendous think, to if the work going money sitting to in were than be is all that professional our our through willing cash it, a what those if businesses, know, to in And operated weights and the reason -- looking CRE pipeline, your at look stimulus in the to C&I cash. of make there, amount as investments. we’ve if you doctors, see past. of receive you lawyers work spend through owner it they’re all in PPP. is

And around we describe end would they are some pre-pandemic half by the and be sheet, more of single-digit I growth the our balance depends of guidance or high to either outcomes back more the work confident borrowers then pace of will through credit. continue the their being And I cash. alongside we back to businesses the towards on it in investments sort the it that hoard and on investing distribute take would out forgiveness extent will down and driven if think so, which that provide invest happen cash of high that in of there as coming it end they’ll forgiveness, the when on of be sort C&I year, mid lower will of the making of to growth range of sort the

to you take And on marketplace. moving C&I you borrowers high very back the about the single-digit been into out, to recovery think process And a vaccination Florida over It’s how confident somewhat of so, if robust. half last quick seen economy. on sort position two back the to is feel we were come us But, those modeling mid the we’ve of still The growth quickly. given very year quarters. significant of have the

feel If the and are have in stimulus to credit of up payments. amount businesses a therefore, you bulked of late moderated, issues Florida, and like to would sheets thing much very this very much we return our both tremendous was with And it from consumers, year. you pre-pandemic balance growth return expect cash were

Steve Moss

And Right. just business interchange aspect, income maybe activity up that here on your quarter-over-quarter. stepped

do Just as of about to go higher there? continue think unusual that here, anything kind from curious, you or if just there’s

Chuck Shaffer

is I forward. I expect think, QX move usually materially point, this the from to don’t it but strong lower point

So, driven to market we high again. high be a portfolio to QX spending drive to debit been campaigns, then, our economy the we’ve in a across and companies seen we’ve stimulus if will by I modeling, we’ll QX continue were lot that’s the But to focus on of as own you point past, think as interchange, and continue card the continue in talked and we point. both well for stimulus that. expect was a And which

Steve Moss

And That’s just one Okay. then, last from one me. helpful.

of Just in just versus loan margin in are at as the these loans to and days roll-off pricing, coming of new terms particular kind on looking where curious yields?

Chuck Shaffer

don’t I And me. stable I last you what that’s QX, asset were the is? quarter, probably rate across mix add-on of exact prior X.XX% the and in roll-off Tracey, all rate, the us have a front three can in of roll-off in that’s very know been the at give answer, classes. Steve, do over for an you Yes. our quarters. we for rate our And

Tracey Dexter

rate I Roll-off think I in do. the first quarter. X.XX%

Operator

from Our go Michael Please Young. next question is ahead.

Michael Young

is problem future. frankly, in the wanted with the the energy levels having nice to of guys and of kind I that like loan of you both announcement, start, high back which high-class It of half. on I sounds have capital, I quite even dividend was maybe really maybe and for But mean, those, guess, which to see. just a the some coming potential greater there’s growth liquidity.

capital. to building -- be going still have You’re

a outlook to I to of just kind on bought in maybe liquidity. past that just do curious opportunities things if like kind deploy the know your anything And So, and mortgage and of that. basis, you the on sort would of pools loans interim, you capital lever in of temporary

like there? anything So, that’s that out

Chuck Shaffer

a to is, like like we’ve revisit put the continue to concept think capital that over here. balance fortress I sheet think And one, amount carrying the significant together capital. way about time. we We of we’ll that

capital Our focus for M&A. and organic growth is primary

the conversations have robust over I the six been and think, M&A market last increasing months.

I that ideally, sheet. M&A. place Michael. point, time, in and see so, revisit at it And we’ll think this of careful balance out into a And put a It’s and growth we in dividend over put just years. how strength as the through be we organic versus balance an again, the would coming growth just And we’ll what -- M&A. it ideally, move plays But it we’ve

Michael Young

have a guys question point But, job next of little the opportunities more of either invest are there guide to growth other great the with I you slated through is in for other expenses for quarter really just And XXXX, guess, continue. maybe other balancing like a future kind guess, was done that Vision The the reinvestment a I in of this Okay. culling had at looks hiring or in little to to more I aggressive, areas in cycle? be, areas.

Chuck Shaffer

Yes.

We have of year. key in the a is hiring. Part coming investments number of that

teams. both, out are much and We very individuals active recruiting

up of president if a credit Florida team the number new we we’re right in look market brought the a last including officer. in in area, you back have a a Central to talking We folks and new first regional and year, quarter late now. And

secondarily, in to year, investment be We able a and have times product significant our market that our as in origination then, the line is in to of sight we Company, investment plans. the in towards And faster. particularly business, the come a future number coming banking to baked here been hires of making commercial of into amount cycle we’ve deliver

our we’ve customers. of results then, year and basically And thirdly, investing origination that Some will in much to as the digital work come a digital continues build front for been investment quicker team process. of end later this the

robust I time. while as expect have XXXX it. efficiency we we’ll is excited our got move a customers, managing we ratio. these a more we’re increase We’ve we’ve that investments something It for and as to We our about -- through through plan our front base much to expense enter think end digital XXXX got offset make and don’t

overhead economies you continue fairly in decisions challenge hires along for what’s hard with Florida, we In make talent. the And increased so ahead. around come as to legacy around on digital acquire force to as to going trade-off investments, just know, back so, a here, sort out sure. opportunities the we’ll future M&A And make ourselves and has continuously of are team generally, conversations, back to bankers

Michael Young

one last And me. Okay. for

You made investment of been I perspective. on guess, side there. maybe that’s the offset industry know about the you in just a mortgage, environment. low I lot rate guys lot an a particular? investment’s to in house of of talk have income Could gone fee the high kind of from

muting should expect impact? kind fall gain maybe of to we kind just volume industry volumes off Florida So, in generally of the share or higher the market mute industry

Chuck Shaffer

way a The we to way great think Yes. it’s acquire is about mortgage customers.

well service we And a only. on base. our on in. And at customer grow look current Florida the as so, as way a markets focus we We new customers we’re it to as focus

the of comes that I think, sell. builds revenue that It sustainable mortgage value the highest that’s business. cross annuitized alongside

Coast East and growth and And that in, along purchase job originators were realtors said, to guide looking customer those income of continue the market we mortgage has to refinance number And But slower to as two That franchise. we into if over the servicing expand Tampa. business, here, demand We’ve an in mortgage Seacoast focus the key time. in time, the quarters. drive in over recruit is markets share and on that’s forward, we’re slow, done the again, one the as in our to in is at of why mortgage coming team we number here originators are the with side. money well always franchise prioritizing so, we’re to being But the incredible hired and particular, our move as mortgage markets. a all actively value Orlando

Operator

from Please go is question Feaster. next David ahead. Our

David Feaster

great existing just of ready encouraging. pipeline. you getting the to much think is was curious, was to It’s It are outlook extremely update are invest, I this in just of that see more versus how customers increase from an the and program. from customer new from the PPP where migration that made the new acquisition economic of we improved the given just clients new kind you’ve in hires the

Chuck Shaffer

Sure.

market you say into relationships. bringing of new majority of lot Florida. new the plans, it’s to West Coast is South the I’d A look customers If in. grown that been were the we’ve the is into pipeline, we’ve and expansionary It at Tampa, it

deals pipeline, our so, more overall more our that I expansion of seeing early-stage like to would were our you earlier, more if coming mentioned you, I back had we And years. opportunities per we’re basis, in banker going really including the of have measure deals, sort number largely of is sort pipeline And productivity from of and on we’ve business. tell a that over than a

about. excited the is game, in selling full They’re population bank. we’re So, the which our entire

not are growth seeing only AUM we’re opportunities, has in loan contributing significantly which growth, substantial. been the to they So,

$XXX that, team. our team, of expand bank. almost selling they’re math And $XXX we’re north in full the come business AUM help million, run from you up year-over-year that million If alongside wealth that that’s the on expanding,

the more we’re competitive. commercial excited to So, It’s continue on focus super business. make something about we to it

larger there’s Florida. a earlier, -- It’s there. technology for of us an in around mentioned investments in the serve. made metro that space investments to. have There’s for As banks lot either the be these markets banks think we’ve commercial us we’ll lot exited a community smaller all the bank slide of of here, and nice larger. a We’ve And made leadership to the much gotten in state have as continue we here opportunity I gotten or I particularly community of or

And customers. to get so, PPP continue on side, the we

opportunity We to customers. continue have use me. acquire exact sell David. I can to in don’t them an I we later continue of it customers. numbers get you the to as cross front today, for But,

David Feaster

That’s seeing your the of significantly. credits in think sounds or more PPP, paydowns? just growth additional kind could exclusive quarter, payoffs improved in curious, pipeline, and appetite runoff And economic in have lines, start the PPP distraction here, just lot between troughed confident you that Do the the great. rearview. the we think be the guess, with like that improved I reading just pretty you’re the build outlook a from for and it of and some there loans, you should that second from do given

Chuck Shaffer

Right model growth then fairly QX have very quarter, would now, our in QX. and slight and in growth significant the coming

So, I think is this trough. the

David Feaster

in do It the just guess, touch over to to you opportunity some some take of you’re liquidity sounds And your it you pretty book, sensitivity you are build? or to strategy the this do maybe your this be in excess take just securities thinking how cash. you wanted just to duration flow some how massive about table, expect about I asset do methodical for is time, on going like and just invest then, see off and out? liquidity light deploying risk maybe that And the just of that? And sensitivity or think Okay.

Chuck Shaffer

want. you here, Tracey, too, think, I patient. we’ll But, jump continue in you I think, if be to can

risk the think, fairly higher point. this material I is rates of at

we so, type and these duration of to long find want don’t ahead ourselves water under ourselves bonds. And in get low-yielding then

earnings to in with risk risk. on be extension we’ll careful rate sliding balance methodical, in the a declines four-year duration so, market environment. focused It very value David. sort Today, higher is we’ve of And of a no of for

yield And quarter the the down appropriate. yield but hit for in guide in think a we the growth. to that’s pushes range, You it million coming and our $XXX you take little X.XX there X.XX, is net a

Tracey Dexter

liquidity of those largely you’re driven uncertainties balances. the to trends David, excess by deposit there. Yes. mention in is right higher PPP The forgiveness, some customer And

that us would in changes reconsider. so, certainly And cause to behavior

Chuck Shaffer

Yes.

including period kind liquidity in of money in bank year sheets, else’s balance where that envision ours You can as excess and invested. gets that’s a here wane and that to the coming begins everybody

type our this there later in begin year. cash sort customer to the this all of of got thought C&I will invest that’s is So

have they think to. I

and pent think they’ve to up, and some as the on I the as it’s well said, economic work pandemic. been forgiveness waiting clarity recovery for, impact through I the of like

some we’ve that, cetera. very for around the vaccine, clear as past, think, including indications waiting in we were et I stimulus, talked

on feeling see able ahead state think to doing confident that us gives incredibly and that confidence the well. our about been the is we’ve future recovery. I economic And we’re that

Operator

[Operator further Instructions] at this time. questions have no And I

Chuck Shaffer

All you. soon. right. Thank you. Thank you, we’ll everybody, for Thank joining And us this talk morning.

Operator

Thank Thank That you, gentlemen. today’s may ladies you for participating. And and you disconnect. conference. now concludes

Chuck Shaffer	President and CEO
Tracey Dexter	CFO
Jeff Lee	Chief Digital Officer
Denny Hudson	Executive Chairman
Steve Moss	B. Riley FBR Inc.
Michael Young	SunTrust Robinson Humphrey
David Feaster	Raymond James

Seacoast Banking Corporation of Florida (SBCF) 23 Apr 212021 Q1 Earnings call transcript