Seacoast Banking Corporation of Florida (NASDAQ:SBCF) Q4 2022 Earnings Call Transcript

Chuck Shaffer: Yes, Brandon. I’ll just add. I think on just the demand deposit side, we’ve seen a lot of the surge deposits and just kind of average account balances come down a little bit from that excess liquidity. So, we’re probably at a relatively better more stable position, more similar back to pre-liquidity surge levels. So that should be a little bit better, but we will continue to focus on growing core relationships and money market accounts with commercial customers, et cetera. So, you’ll see incremental growth there going forward.

Brandon King: Okay. And then – I know this might be a little pre-mature, but what sense of how the company and performance levels could performance that the Fed does cut rates to – people expect in the back half of this year and next year. Just what is a position from a balance sheet perspective as far as how company could perform in that environment?

Chuck Shaffer: Yes, Sure Brandon. Our dynamic NII look would be in an up 100 basis point scenario, we would be up about little over 3% and down 100 scenario, we’d be down a little more than 3% as well. So pretty symmetric outcomes from that perspective and our asset sensitivity has been reduced, as well as we reach higher levels at absolute rates. So, I think we’re pretty well positioned there, not a lot of sensitivity and risk as much today. I think we’ll continue to evaluate downside risk to rates given the high level that we’re at in terms of an absolute basis on interest rates today and minimize downside risk, obviously, for Seacoast as a franchise, our strength is our funding basis, we’ve seen this quarter. And so we want to make sure that we maintain the monetization of that strength going forward.

Operator: Thank you. And at this moment, I’m showing no further questions, I’ll turn it back to the speakers.

Chuck Shaffer: Thank you and thank you all for joining us. As quarter showed the strength of the franchise, and our focus on building franchise over the long run. It was great to see the strong results for the quarter. And just to reiterate and I appreciate everybody the Seacoast team and the hard work they put in the last year. It’s just a truly remarkable year. So, thank you all, and I think that will conclude our call.

Operator: Thank you. Ladies and gentlemen, we thank you for your participation and ask that you please disconnect your call. This concluded today’s call. Have a good day.