Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Gulf South Bank Conference 2019
13 slides from Stellar Bancorp's conference presentation, May 3, 2019
Slide 1: Gulf South Bank Conference May 6-7, 2019
Gulf South Bank Conference May 6 - 7, 2019 NASDAQ: CBTX
Slide 2: Forward Looking Statements
2 FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial p
Slide 3: Company Snapshot
• Founded in 2007 • 35 banking centers operating across Texas • Primarily a business bank, ~85% commercial loans(1) as of March 31, 2019 • Seasoned executive management team • History of organic growth, mergers of equals, and acquisitions • Diverse and attractive loan portfolio • Low-cost core fundi
Slide 4: First Quarter 2019 Highlights
4 FIRST QUARTER 2019 HIGHLIGHTS • Net income of $0.42 per diluted share for the quarter ended March 31, 2019, compared to $0.37 per diluted share, for the quarter ended March 31, 2018. • Return on average assets 1.30% for the first quarter of 2019, compared to 1.20% for the first quarter of 2018. •
Slide 5: Growth and Transformation
5 58.6% 41.4% Beaumont Houston Transformation of Loan Portfolio Note: Figures as of year-end 12/31. 2019 Q1 as of 3/31/2019. 70.1% 29.9% Asset and Earnings Growth ($000) 2013 2017 2019 Q1 GROWTH AND TRANSFORMATION $2,883 $2,952 $3,081 $3,279 $3,283 0.85% 0.94% 0.93% 1.50% 1.30% 0.00% 0.20% 0.40% 0.6
Slide 6: Attractive, Low-Cost Core Deposit Base
The Bank Built or BusinessATTRACTIVE, LOW-COST CORE DEPOSIT 6 Stable Core Deposit Base (1) • Proven ability to generate low-cost core deposits(2) to fund loan growth • 93% loan to deposit ratio as of March 31, 2019 • Business banking focus combined with relationship approach results in: ~45% noninte
Slide 7: Diversified Loan Portfolio
The Bank Built or Business 7 Loan Composition Over Time(1) (1) Figures as of year end 12/31. 2019 Q1 as of 3/31/2019. (2) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. DIVERSIFIED LOAN PORTFOLIO • Total commercial loans (2) represented ap
Slide 8: Core Focus on Commercial Loans
The Bank Built or BusinessCORE FOCUS ON COMMERCIAL LOANS 8 Commercial Loans Outstanding by Type ($2.158B) (1) (2) (1) Figures as of 3/31/2019. (2) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. Commercial Real Estate ($1.025B) Commercial &
Slide 9: Construction and Development Loans
The Bank Built or BusinessCONSTRUCTION AND DEVELOPMENT LOANS 9 (1) Total capital of CommunityBank of Texas, N.A., the wholly-owned subsidiary of the Company. Construction and Development Loan Components March 31, 2019 ($000) (% Capital) (1) Construction Community Development Multifamily $ 168 42.3%
Slide 10: Strong Credit Culture
The Bank Built or BusinessSTRONG CREDIT CULTURE 10 • CHIEF CREDIT OFFICER WITH 40 YEARS OF EXPERIENCE Seasoned Regional Credit Officers located in Houston and Beaumont • CENTRALIZED UNDERWRITING, TIERED APPROVAL REQUIREMENT BASED ON AGGREGATED REALTIONSHIP SIZE Officer credit authority, credit execu
Slide 11: Revenue Growth and Efficiency
The Bank Built or BusinessREVENUE GROWTH AND EFFICIENCY 11 REVENUE GROWTH • Increasing net interest margin (NIM) • Asset sensitive, with 55% variable rate loans as of March 31, 2019 • Increasing revenue and improving efficiency ratio (2) Historical Revenue and NIM (1) Improving Efficiency (1)(2) EFF
Slide 12: Growth Strategy
12 GROWTH STRATEGY ▪ Five whole-bank acquisitions completed Proven ability to source, acquire, and successfully integrate strategic acquisitions, while remaining disciplined ▪ Additive to overall franchise Talented bankers, sound credit culture, complementary branch footprint ▪ Experienced acquirer
Slide 13: CommunityBank of Texas: Here to Serve
13 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