Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Q4 2020 Earnings Presentation
21 slides from Stellar Bancorp's earnings presentation, Jan 27, 2021
Slide 1: CBTX, Inc. Investor Presentation Fourth Quarter 2020
CBTX, Inc. Investor Presentation Fourth Quarter 2020 NASDAQ: CBTX
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
2 SAFE HARBOR STATEMENT AND NON-GAAP FINANCIAL MEASURES NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP (generally accepted accounting principles) financial measures, including tangible equity, tangible assets, tangible book value per share, tangible equity to tangible assets
Slide 3: Company Snapshot
The Bank Built or Business 3 • Gross loans increased from March by $269.4 million due to originations of $336.1 million of PPP loans during Q2 offset by paydowns/payoffs • Total commercial loans (1) were 86.7% of total loans at June 30, 2020 • At June 30, 2020, 76.4% of loans are Houston-based • Foc
Slide 4: Financial Highlights
4 FINANCIAL HIGHLIGHTS (1) PPP loans, Net are included in Loans, Net above. See page 12 for further details. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Pre-provision net revenue is net income, with the provision for credit losses and income tax expense added back. Financ
Slide 5: Financial Highlights (Continued)
5 FINANCIAL HIGHLIGHTS (Continued) (1) Annualized. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income and noninterest income. Financial Highlights Q4 2020 Q3 2020 Q4 2019 2020 YTD 20
Slide 6: Capital and Liquidity
The Bank Built or Business CAPITAL AND LIQUIDITY 6 REVENUE GROWH • Stable net interest margin (NIM) • Asset sensitive, with 54% variable rate loans as of March 31, 2020 • Increasing revenue and improving efficiency ratio (2) (1) See Appendix for reconciliation of non-GAAP financial measure. (2) Incl
Slide 7: Deposits
The Bank Built or Business 7 Stable Core Deposit(1)(2) (1) Core deposits defined as total deposits less jumbo time deposits (time deposits over $100,000). (2) Figures as of year end 12/31. DEPOSITS • Gross loans increased from March by $269.4 million due to originations of $336.1 million of PPP loan
Slide 8: Loan Portfolio
The Bank Built or Business 8 Loan Portfolio Composition(2) (1) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. (2) Figures as of year end 12/31. (3) See page 11 for information about how the Company classifies is direct and indirect oil and
Slide 9: Commercial Loans
The Bank Built or Business COMMERCIAL LOANS 9 Multi-family ($418M) • Operating lines of credit, fixed asset financing and real estate loans to industrial companies involved in the construction, modification, support and maintenance of petrochemical plants Industrial Construction/Equipment Rental Mul
Slide 10: Construction and Development Loans
The Bank Built or Business CONSTRUCTION AND DEVELOPMENT LOANS 10 (1) Total capital of CommunityBank of Texas, N.A., the wholly-owned subsidiary of the Company. Construction and Development Loans - 12/31/2020 Balance (000) Percentage of Capital(1) Commitment (000) Commercial $ 221,949 48.4% $ 307,265
Slide 11: Oil and Gas Loans
The Bank Built or Business OIL AND GAS LOANS 11 • DIRECT - Loans to an entity with more than 50% of its revenue related to the well-head, oil in the ground or extracting oil or gas. This includes any activity, product or service related to the oil and gas industry, such as exploration and production
Slide 12: Paycheck Protection Program
12 PAYCHECK PROTECTION PROGRAM (1) All PPP loans are classified as Commercial and Industrial loans per regulatory guidelines. (2) Annualized. • As of 12/31/2020, loan forgiveness applications were submitted and in process with the SBA for 256 loans with total principal balances of $86.4 million • As
Slide 13: Loan Deferrals
The Bank Built or Business 13 LOAN DEFERRALS • Working with customers to maintain their financial strength through the COVID-19 pandemic and in line with regulatory guidance • Generally approved deferrals to provide time and payment relief • Following the end of the deferral period, we expect our cu
Slide 14: COVID-19 At Risk Loans
The Bank Built or Business COVID-19 AT RISK LOANS 14 • Participating in the Paycheck Protection Program offered under the Cares Act •____ PPP loans outstanding, with average loan size of ___ • SBA origination fees of $11.2 M through 6/30/2020. • Processing additional applications (1) Percentage base
Slide 15: Allowance for Credit Losses
The Bank Built or Business ALLOWANCE FOR CREDIT LOSSES 15 • Participating in the Paycheck Protection Program offered under the Cares Act •____ PPP loans outstanding, with average loan size of ___ at June 30, 2020 • SBA origination fees of $11.2 M through 6/30/2020. • Processing additional applicatio
Slide 16: NPA and Net Charge-Offs
The Bank Built or Business NPA AND NET CHARGE-OFFS 16 REVENUE • Net interest margin (NIM) remained strong, impacted by lower interest rates and lower yielding PPP loans • Average loan yield (excluding PPP loans) of 4.75% for Q2 2020 • • Average loan yield on PPP loans of 2.28% • Cost of interest bea
Slide 17: Revenue and Efficiency
The Bank Built or Business REVENUE AND EFFICIENCY 17 REVENUE • Net interest margin (NIM) remained strong, impacted by lower interest rates and lower yielding PPP loans • Average loan yield (excluding PPP loans) of 4.75% for Q2 2020 • • Average loan yield on PPP loans of 2.28% • Cost of interest bear
Slide 18: CommunityBank of Texas: Here to Serve
18 At CommunityBank of Texas, we’re committed to building strong, honest relationships. We strive to keep our clients’ and partners’ needs at the forefront of everything we do. And we measure our success by the success we help create for them. OUR VISION Here to Serve. OUR POSITIONING To experienced
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Reconciliations
20 NON-GAAP RECONCILIATIONS Our management uses certain non-GAAP financial measures to evaluate performance. We have included in this presentation information related to these non-GAAP financial measures for the applicable periods presented. The following tables reconcile, as of the dates set forth
Slide 21: Non-GAAP Reconciliations (Continued)
21 NON-GAAP RECONCILIATIONS (Continued) (000) 12/31/2020 12/31/2020 12/31/2019 12/31/2019 9/30/2020 (000) 2019 YTD Q4 2020 2020 YTD Q3 2020 Q4 2019 Total Shareholders' Equity $ 546,451 $ 540,921 $ 535,721 $ 546,451 $ 535,721 Goodwill (80,950) (80,950) (80,950) (80,950) (80,950) Other Intangibles (4,