Q2 2024 Seacoast Banking Corporation of Florida Earnings Call Transcript
Key Points
- Seacoast Banking Corp of Florida (SBCF) reported a strong quarter with a 60% increase in commercial loan originations and a record $744 million late-stage pipeline entering Q3.
- The company saw low single-digit loan growth at 2.4% annualized and expects production to increase in Q3, boosting net interest income and net interest margin.
- Non-interest income improved with increased performance in wealth management fees, service charges on deposits, and insurance agency revenue.
- Adjusted non-interest expenses have declined sequentially for the past four quarters, approximately $9 million per quarter lower than a year ago.
- Seacoast Banking Corp of Florida (SBCF) maintained strong asset quality with nonperforming loans declining by $17 million and an ACL of $142 million, positioning it strongly among peers.
- Net interest income declined modestly during the quarter due to higher deposit costs and growth in deposit balances.
- Core net interest margin contracted by 4 basis points to 2.87%.
- Charge-offs were slightly higher this quarter at approximately 40 basis points annualized, mainly due to a limited number of loans.
- The cost of deposits increased to 2.31%, with the exit rate flat month-over-month at 2.33%.
- Classified and criticized loans increased slightly from the prior quarter.
Welcome to Seacoast Banking Corporation's second-quarter 2024 earnings conference call. My name is Pam, and I will be your operator.
Before we begin, I have been asked to direct your attention to the statement 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 the Act. Please note that this conference is being recorded.
I will now turn the call over to Chuck Shaffer, Chairman and CEO of Seacoast Bank. Mr. Shaffer, you may begin.
Thank you, Pam, and good morning, everyone. As we go through our presentation, we'll be referring to the second quarter earnings slide deck, which is available at seacoastbanking.com. I'm here today with Tracey Dexter, Chief Financial Officer; Michael Young, Treasurer and Director of Investor
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