Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — KBW Community Bank Investor Conference 2019
17 slides from Stellar Bancorp's conference presentation, Jul 26, 2019
Slide 1: KBW Community Bank Investor Conference July 30-31, 2019
KBW Community Bank Investor Conference July 30 - 31, 2019 NASDAQ: CBTX
Slide 2: Non-GAAP Financial Measures and Forward Looking Statements
2 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 and tangible equity to tangible assets. The non-GAAP financial measures that CBTX, Inc.(t
Slide 3: Company Snapshot
• Founded in 2007 • Initial public offering November 2017 • Primarily a business bank with 35 banking centers across Texas • Relationship based~ 81% of loan customers also had a deposit relationship at June 30, 2019 • Strong credit culture • Low-cost core funding • Strong insider ownership of ~29% a
Slide 4: Financial Highlights
4 FINANCIAL HIGHLIGHTS (1) See Appendix for reconciliation of non-GAAP financial measures. (2) Efficiency ratio is calculated by dividing noninterest expense divided by the sum of net interest income and noninterest income. Q2 2019 Q1 2019 Q4 2018 Q2 2019 vs Q1 2019 Q2 2019 vs Q4 2018 Balance Sheet
Slide 5: Asset and Earnings Growth
5 Note: Figures as of year-end 12/31. 2019 Q2 as of 6/30/2019. Asset and Earnings Growth ($000) 2013 2017 2019 Q1 ASSET AND EARNINGS GROWTH $2,883 $2,952 $3,081 $3,279 $3,380 0.85% 0.94% 0.93% 1.50% 1.72% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2.00% $2,600 $2,700 $2,800 $2,900 $
Slide 6: Deposits: Stable Core Deposit Base
The Bank Built or Business DEPOSITS 6 Stable Core Deposit Base (1) • Proven ability to generate low-cost core deposits(2) to fund loan growth • 96% loan to deposit ratio as of June 30, 2019 • ~45% noninterest-bearing demand deposits at June 30, 2019 • ~93% core deposits(2) with minimal reliance on t
Slide 7: Loan Portfolio Composition
The Bank Built or Business 7 Loan Portfolio Composition(1) (1) Figures as of year end 12/31. 2019 Q2 as of 6/30/2019. (2) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. LOAN PORTFOLIO • Total commercial loans (2) represented ~ 85% of total
Slide 8: Commercial Loans
The Bank Built or Business COMMERCIAL LOANS 8 Commercial Loans Outstanding by Type ($2.253B) (1) (2) (1) Figures as of 6/30/2019. (2) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. Commercial Real Estate ($1.153B) Commercial & Industrial (
Slide 9: Construction and Development Loans
The Bank Built or Business CONSTRUCTION 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 June 30, 2019 ($000) (% Capital) (1) Construction Community Development Multifamily $ 105 25.6%
Slide 10: Strong Credit Culture
The Bank Built or Business STRONG 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 exec
Slide 11: Nonperforming Assets
The Bank Built or Business NONPERFORMING ASSETS 11 • CHIEF CREDIT OFFICER WITH 40 YEARS OF EXPERIENCE Seasoned Regional Credit Officers located in Houston and Beaumont • CENTRALIZED UNDERWRITING, TIERED APPROVAL REUIREMENT BASED ON AGGREGATED REALTIONSHIP SIZE Officer credit authority, credit execut
Slide 12: Net Charge-Offs
The Bank Built or Business NET CHARGE-OFFS 12 • CHIEF CREDIT OFFICER WITH 40 YEARS OF EXPERIENCE Seasoned Regional Credit Officers located in Houston and Beaumont • CENTRALIZED UNDERWRITING, TIERED APPROVAL REUIREMENT BASED ON AGGREGATED REALTIONSHIP SIZE Officer credit authority, credit executive c
Slide 13: Revenue Growth and Efficiency
The Bank Built or Business REVENUE GROWTH AND EFFICIENCY 13 REVENUE GROWTH • Increasing net interest margin (NIM) • Asset sensitive, with 54% variable rate loans as of June 30, 2019 • Increasing revenue and improving efficiency ratio (2) Revenue and NIM (1) Improving Efficiency (1)(2) EFFICIENCY EFF
Slide 14: Growth Strategy
14 GROWTH STRATEGY ▪ Proven ability to source, acquire, and successfully integrate strategic acquisitions, while remaining disciplined ▪ Focused on acquisitions that are additive to overall franchise - banks with talented bankers, sound credit culture and complementary branch footprint ▪ Publicly tr
Slide 15: CommunityBank of Texas: Here to Serve
15 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 16: Appendix
APPENDIX
Slide 17: Non-GAAP Reconciliation
17 NON-GAAP RECONCILIATION Our management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate performance. We have included in this presentation information related these non-GAAP financial measures for the applicable periods presented. The table below rec