Seacoast Banking Corp. of Florida (NASDAQ:SBCF) Q4 2019 Earnings Conference Call - Final Transcript

Jan 24, 2020 • 10:00 am ET

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Seacoast Banking Corp. of Florida (NASDAQ:SBCF) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Dennis S. Hudson, III

our operation in that important market. She'll be joined by her key leadership folks. And when combined with our franchise and people, we'll make up the largest Florida-based bank in St. Petersburg, and the third largest Florida-based community bank in the Tampa, St. Pete MSA.

Turning back to the East Coast. We expect to close the Palm Beach transaction late in the first quarter; and Freedom, late in the second quarter. As we've said many times, we remain focused on building out an extremely valuable and irreplaceable franchise throughout the State of Florida, and we believe our Florida acquisition program will continue to play an important role in our balanced growth strategy over the next couple of years.

We will remain focused on opportunities that strengthen our position in Florida's higher growth metro markets, including Tampa, St. Pete; Orlando, South Florida, and also helping us continue to build operating leverage.

I also want to say, the outlook for Florida, and particularly the markets in which we operate, remains very strong today. Chuck will cover more detail in a minute, but the final quarter of the year continued to produce just excellent results. Adjusted earnings per share for the quarter was $0.52 and our adjusted return on average tangible assets stood at 1.57%.

Earnings continued to accrete steady peer leading growth in tangible book value per share, and our overall capital position remained steady with a tangible capital ratio of over 11%, ranking us among the strongest in the nation. Our capital returns remain strong with an adjusted return on tangible capital of just under 15%, pretty incredible when you consider the size of our capital base.

Looking ahead, we remain very confident in our ability to meet our Vision 2020 objectives. Hitting these objectives require us to drive a lot of change into the organization, and a great deal of that change is now behind us. As we continue to execute our balanced growth strategy, we will focus on delivering both strong growth and excellent returns.

Our Seacoast team members have worked incredibly hard over the past couple of years to get us where we are today. I want to express my sincere appreciation to all of you, and my confidence in your ability to continue to lead Seacoast, to build out this incredible franchise across Florida, as we continue to execute our balanced growth strategy.

With that, I'd like to turn the call over to Chuck, to review our results in a little more detail, and also to talk a little more about our recent acquisition. Then we'd be happy to take a few questions. Chuck?

Executive
Charles M. Shaffer

Thank you, Denny, and thank you all for joining us this morning. As I provide my comments, I'll reference the Fourth Street Freedom Bank deck in the fourth quarter 2019 earnings slide deck, which can be found at seacoastbanking.com.

Let's start this morning with the Fourth Street Freedom Bank deck. Last night, we announced the acquisition of Fourth Street Banking Corporation, inclusive of