Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Q4 2019 Earnings Presentation
16 slides from Stellar Bancorp's earnings presentation, Jan 29, 2020
Slide 1: CBTX, Inc. Investor Information Fourth Quarter 2019
CBTX, Inc. Investor Information Fourth Quarter 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~ 82% of loan customers also had a deposit relationship at December 31, 2019 • Strong credit culture • Low-cost core funding • Strong insider ownership of 29
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. Q4 2019 Q3 2019 Q2 2019 Q4 2019 vs Q3 2019 Q4 2019 vs Q2 2019 Balance Sheet
Slide 5: Asset and Earnings Growth
5 Note: Figures as of year-end 12/31. Asset and Earnings Growth ($000) 2013 2017 2019 Q1 ASSET AND EARNINGS GROWTH $2,952 $3,081 $3,279 $3,479 0.94% 0.93% 1.50% 1.50% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% $2,000 $2,200 $2,400 $2,600 $2,800 $3,000 $3,200 $3,400 $3,600 $3,800 2016 2017 2018 2019 Total A
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 • 92% loan to deposit ratio as of December 31, 2019 • 42% noninterest-bearing demand deposits at December 31, 2019 • 93% core deposits(2) with minimal relianc
Slide 7: Loan Portfolio Composition
The Bank Built or Business 7 Loan Portfolio Composition(1) (1) Figures as of year end 12/31. (2) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. LOAN PORTFOLIO • Total commercial loans (2) were 84% of total loans as of December 31, 2019 • A
Slide 8: Commercial Loans
The Bank Built or Business COMMERCIAL LOANS 8 Commercial Loans Outstanding by Type ($2.233B) (1) (2) (1) Figures as of 12/31/2019. (2) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. Commercial Real Estate ($1.178B) Commercial & Industrial
Slide 9: Construction and Development Loans
The Bank Built or Business CONSTRUCTION AND DEVELOPMENT LOANS 9 (1) Total capital of CommunityBank of Texas, N.A., the wholly-owned subsidiary of the Company. Construction and Development Loan Components 12/31/2019 ($M) (% Capital) (1) Construction Community Development Multifamily $ 113 26.1% Const
Slide 10: Nonperforming Assets
The Bank Built or Business NONPERFORMING ASSETS 10 • 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 11: Net Charge-Offs
The Bank Built or Business NET CHARGE-OFFS 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 executive c
Slide 12: Revenue Growth and Efficiency
The Bank Built or Business REVENUE GROWTH AND EFFICIENCY 12 REVENUE GROWTH • Stable net interest margin (NIM) • Asset sensitive, with 53% variable rate loans as of December 31, 2019 • Increasing revenue and improving efficiency ratio (2) Revenue and NIM (1) Improving Efficiency (1)(2) EFFICIENCY EFF
Slide 13: Growth Strategy
13 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 14: CommunityBank of Texas: Here to Serve
14 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 15: Appendix
APPENDIX
Slide 16: Non-GAAP Reconciliation
16 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