Five Star Bancorp · NASDAQ:FSBC
Five Star Bancorp — Q1 2022 Earnings Presentation
31 slides from Five Star Bancorp's earnings presentation, Apr 26, 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First Quarter 2022
Slide 2: Safe Harbor Statement and Disclaimer
Safe Harbor Statement and Disclaimer Forward - Looking Statements In this presentation, “we,” “our,” “us,” “Five Star" or “the Company” refers to Five Star Bancorp, a California corporation, and our consolidated subsidiaries, including Five Star Bank, a California state - chartered bank, unless the
Slide 3: Agenda
Agenda First Quarter 2022 Investor Presentation | 3 • Company Overview • Financial Highlights • Loans and Credit Quality • Deposit and Capital Overview • Financial Results
Slide 4: Company Overview
Company Overview First Quarter 2022 Investor Presentation | 4
Slide 5: Company Overview
Company Overview Nasdaq: Headquarters: Asset Size: Loans Held for Investment: Deposits: Bank Branches: First Quarter 2022 Investor Presentation | 5 FSBC Rancho Cordova, California $2.8 billion $2.1 billion $2.5 billion 7 Note: Balances are as of March 31, 2022. Five Star is a community business bank
Slide 6: Executive Team
Executive Team First Quarter 2022 Investor Presentation | 6 James Beckwith President and Chief Executive Officer Five Star since 2003 John Dalton Senior Vice President and Chief Credit Officer Five Star since 2011 Mike Lee Senior Vice President and Chief Regulatory Officer Five Star since 2005 Micha
Slide 7: Financial Highlights
Financial Highlights First Quarter 2022 Investor Presentation | 7
Slide 8: Consistent and Organic Asset Growth
Consistent and Organic Asset Growth First Quarter 2022 Investor Presentation | 8 Note: Dollars are in millions. Balances are end of period. References to PPP are the Paycheck Protection Program. 1. CAGR is based upon balances as of March 31, 2022. 2. A reconciliation of this non - GAAP measure is se
Slide 9: Financial Highlights
Financial Highlights First Quarter 2022 Investor Presentation | 9 (dollars in millions) For the three months ended 3/31/2022 12/31/2021 3/31/2021 Profitability Net income $ 9.9 $ 11.3 $ 10.3 Return on average assets ("ROAA") 1.53 % 1.82 % 2.05 % Return on average equity ("ROAE") 17.07 % 19.15 % 32.0
Slide 10: Financial Highlights
Financial Highlights First Quarter 2022 Investor Presentation | 10 Growth • Continued balance sheet growth with $166.0 million of growth in non - PPP loans held for investment (1) and $217.2 million in deposit growth since December 31, 2021. Funding • For the most recent quarter ended, non - interes
Slide 11: Loans and Credit Quality
Loans and Credit Quality First Quarter 2022 Investor Presentation | 11
Slide 12: Consistent Loan Growth
Consistent Loan Growth First Quarter 2022 Investor Presentation | 12 Note: Loan balances are end of period loans held for investment. Yields are based on average balance and annualized quarterly interest income. 1. CAGR is based upon balances as of March 31, 2022. 2. A reconciliation of this non - G
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition First Quarter 2022 Investor Presentation | 13 Types of collateral securing commercial real estate ("CRE") loans Loan Balance ($000s) # of Loans % of CRE Manufactured home community $ 598,014 278 33.97 % Retail $ 192,575 65 10.94 % Multifamily $ 167,103 70 9.49 % Industrial
Slide 14: CRE Collateral Values
CRE Collateral Values First Quarter 2022 Investor Presentation | 14 (1) Note: Balances are net book value as of period end, before allowance for loan losses, before deferred loan fees, and exclude loans held for sale. 1. Types of collateral in “all other types” are those that individually make up le
Slide 15: Loan Portfolio Diversification
Loan Portfolio Diversification We focus primarily on commercial lending, with an emphasis on commercial real estate . We offer a variety of loans to small and medium - sized businesses, professionals, and individuals, including commercial real estate, commercial land and construction, and farmland l
Slide 16: Loan Rollforward
Loan Rollforward First Quarter 2022 Investor Presentation | 16 Note: Dollars are in millions. Beginning and ending balances are as of period end, before allowance for loan losses, including deferred loan fees, and excluding loans held for sale. Q4 2021 Q1 2022 Beginning Balance $ 1,707 $ 1,936 Non P
Slide 17: Asset Quality
Asset Quality Our primary objective is to maintain a high level of asset quality in our loan portfolio. In order to maintain our strong asset quality, we: – Place emphasis on our commercial portfolio, where we reevaluate risk assessments as a result of reviewing commercial property op erating statem
Slide 18: Allocation of Allowance for Loan Losses
Allocation of Allowance for Loan Losses First Quarter 2022 Investor Presentation | 18 (dollars in thousands) March 31, 2022 December 31, 2021 Allowance for Loan Losses Amount % of Total Amount % of Total Collectively evaluated for impairment Real estate: Commercial $ 13,868 58.01 % $ 12,869 55.37 %
Slide 19: Risk Grade Migration
Risk Grade Migration First Quarter 2022 Investor Presentation | 19 Classified Loans (Loans Rated Substandard or Doubtful) (dollars in thousands) 2020 2021 Q1 2022 Real estate: Commercial $ 35,543 $ 9,256 $ 901 Commercial land & development — — — Commercial construction — — — Residential construction
Slide 20: Deposit and Capital Overview
Deposit and Capital Overview First Quarter 2022 Investor Presentation | 20
Slide 21: Diversified Funding
Diversified Funding First Quarter 2022 Investor Presentation | 21 Total Deposits (1) = $2.5 billion 98.3% of Total Liabilities Liability Mix 1. Balance as of March 31, 2022. 2. Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Loan (2) to Deposit Ratio
Slide 22: Strong Deposit Growth
Strong Deposit Growth First Quarter 2022 Investor Presentation | 22 Note: Balances are end of period. Cost of total deposits is based on total average balance of interest - bearing and non - interest - bearing deposits and annualized quarterly deposit interest expense. 1. CAGR is based upon balances
Slide 23: Capital Ratios
Capital Ratios First Quarter 2022 Investor Presentation | 23 Tier 1 Leverage Ratio Tier 1 Capital to RWA Total Capital to RWA Common Equity Tier 1 to RWA Note: References to RWA are risk - weighted assets.
Slide 24: Financial Results
Financial Results First Quarter 2022 Investor Presentation | 24
Slide 25: Earnings Track Record
Earnings Track Record First Quarter 2022 Investor Presentation | 25 Note: References to EPS are Earnings Per Share. Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net Income $ 10.3 M $ 9.8 M $ 11.0 M $ 11.3 M $ 9.9 M Quarterly Basic EPS $ 0.93 $ 0.67 $ 0.64 $ 0.66 $ 0.58 Quarterly Diluted EPS $ 0.93 $ 0.67
Slide 26: Operating Metrics
Operating Metrics First Quarter 2022 Investor Presentation | 26 Efficiency Ratio Net Interest Margin Note: All 2022 figures are through March 31, 2022. Total Income Before Taxes
Slide 27: Non-interest Income and Expense Comparison
Non - interest Income and Expense Comparison First Quarter 2022 Investor Presentation | 27 (dollars in thousands) For the three months ended 3/31/2022 12/31/2021 3/31/2021 Non - interest Income Service charges on deposit accounts $ 108 $ 116 $ 90 Net gain on sale of securities 5 15 182 Gain on sale
Slide 28: Shareholder Returns
Shareholder Returns First Quarter 2022 Investor Presentation | 28 ROAA ROAE EPS (basic and diluted) Value per Share (book and tangible book (1) ) Note: All 2022 figures are through March 31, 2022. 1. A reconciliation of this non - GAAP measure is set forth in the appendix.
Slide 29: We strive to become the top business bank in all markets we serve through
We strive to become the top business bank in all markets we serve through exceptional service, deep connectivity, and customer empathy. We are dedicated to serving real estate, agricultural, faith - based, and small to medium - sized enterprises. We aim to consistently deliver value that meets or ex
Slide 30: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non - GAAP Reconciliation (Unaudited) The Company uses financial information in its analysis of the Company's performance that are not in conformity with GAAP . The Company believes that these non - GAAP financial measures provide useful information to management and investors that is supp
Slide 31: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non - GAAP Reconciliation (Unaudited) First Quarter 2022 Investor Presentation | 31 (dollars in millions) Total assets, excluding PPP loans 12/31/2020 12/31/2021 3/31/2022 Total assets $ 1,954 $ 2,557 $ 2,778 Less: PPP loans 148 22 2 Total assets, excluding PPP loans $ 1,806 $ 2,535 $ 2,77