Q3 2024 Seacoast Banking Corporation of Florida Earnings Call

In This Article:

Participants

Charles Shaffer; Chairman of the Board, President, Chief Executive Officer; Seacoast Banking Corporation of Florida

Tracey Dexter; Chief Financial Officer, Executive Vice President; Seacoast Banking Corporation of Florida

Michael Young; Executive Vice President, Treasurer and Director of Investor Relations; Seacoast Banking Corporation of Florida

Russell Gunther; Analyst; Stephens

Woody Lay; Analyst; Keefe, Bruyette & Woods Inc

David Feaster; Analyst; Raymond James Financial Inc

David Bishop; Analyst; Hovde Group

Stephen Scouten; Analyst; Piper Sandler & Co

Presentation

Operator

Welcome to the Seacoast Banking Corporation's third quarter, 2024 earnings conference call. My name is Gail and I will be your operator. (Operator Instructions)
Before we begin, I've 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 that act. Please note that this conference is being recorded.
I'll now turn the call over to Chuck Schafer, Chairman and CEO of Sea Coast Bank. Mr. Schafer. You may begin.

Charles Shaffer

All right. Thank you. And good morning, everyone before we start, I want to express our sympathy for all those affected by the hurricanes.
Our hearts go out to all those who lost loved ones or experienced catastrophic losses. I also want to express my sincere appreciation for our associates who with unwavering resilience valiantly reacted to both hurricanes, securing our facilities while preparing their homes and families and quickly focusing on supporting our customers and communities before and after the storm.
I'm incredibly impressed and proud of our entire team. And Tracy will provide a few further thoughts on the hurricanes here shortly as we turn to the quarter, we will refer to the third quarter earnings slide deck which is at seacoastbanking.com. and I'm here today with Tracey Dexter, Chief Financial Officer; Michael Young, Treasurer and Director of Investor Relations; and James Stallings, Chief Credit Officer. The Seacoast team produced an excellent quarter. The results this quarter evidence the inflection and growth and the start of margin expansion that we expected to materialize in the second half of 2024.
We continue to see our investments in banker talent, marketing, and customer focused culture, paying off producing annualized loan growth of 7% and annualized customer deposit growth of 7%. And of note loan originations were up 22% quarter over quarter and commercial noninterest bearing demand deposits grew by $67 million .
Importantly, this quarter also generated annualized growth and tangible book value per share of 20% to $16.20. And additionally, net interest income, noninterest income, pretext pre provision earnings and the name excluding accretion on acquired loans, all improved sequentially, this quarter showcases the strength of the banking team.
We've been intently building over the last few years and while completing our acquisitions in late '22 and '23 we also recruited an exceptional commercial banking team, credit team, and retail banking talent with additions in all markets. This quarter, we continued this expansion with further investments in bankers in Fort Lauderdale Gainesville and Tampa.
And importantly, as we transformed our front line, we've also made all the necessary governance and enterprise risk investments to be a well-functioning compliant midsize bank. So, in summary, this quarter demonstrated several proof points of our operating strategy. First, organic growth was substantial compared to the industry driven by the investment in talented banking teams across the state over the last '24 months.
And secondly, we saw growth in net interest income and the core net interest margin which aligned with our previous guidance, expenses were well controlled and non-interest income was up over 30% from one year ago.
The combination of an expanding margin into 2025 with strong organic growth will support earnings improvements as we move into the coming year. In order to remind you, we are unwavering in our commitment to maintaining our conservative balance sheet principles. This commitment is the cornerstone of our strategy and a key factor in ensuring our long term success.
We remain steadfast in our mission to establish seacoast as the leading player in Florida. Now have to call Tracy to talk about our financial results.