Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — Q1 2024 Earnings Presentation
20 slides from Stellar Bancorp's earnings presentation, Apr 26, 2024
Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 2 Certain statements in this press release which are not historical in nature are intended to be, and are hereby identified as, “forward-looking statements” for purposes of the safe harbor provided by Section 27A of the Securities Act of 193
Slide 3: Houston's Largest Regionally-Focused Bank
3 (1) Refer to the calculation of this non-GAAP financial measure and a reconciliation to its most directly comparable GAAP financial measure in the appendix. Houston’s Largest Regionally-Focused Bank Principal banking subsidiary renamed Stellar Bank upon successful system conversion in February 2
Slide 4: Focused on Serving the Houston Region
$1.9 $1.9 $2.1 $2.5 $2.6 $3.0 $3.1 $5.5 $5.7 $6.7 $7.6 $7.8 $8.6 $10.2 $12.0 $27.2 $29.8 $157.3 Texas Independent BOK Regions Texas Capital Truist Comerica Third Coast Woodforest Prosperity Capital One Frost Cadence Stellar PNC Zions BofA Wells Fargo JPMorgan Focused on Serving the Houston Region 4
Slide 5: First Quarter 2024 Highlights
5 First Quarter 2024 Highlights (1) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures in the appendix. (2) Interim periods annualized. (3) Link to S&P’s Market Intelligence Report: https://pages.marketintellig
Slide 6: Deposit Summary
Deposit Summary 6 Deposit Portfolio Composition Deposits (in millions) Maintaining Discipline Navigating Competitive Deposit Market As of March 31, 2024: • Estimated uninsured deposits, net of collateralized deposits: 42.8% • Average account size: $78 thousand, excluding collateralized and brokered
Slide 7: Loan Summary
Loan Summary 7 (1) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures in the appendix. . Loan Portfolio Composition (1) (1) Q1 2024 Q4 2023 Commercial and Industrial (“C&I”) 1,455,755$ 1,414,102$ Nonowner-occup
Slide 8: CRE and Office Detail: Q1 2024
CRE and Office Detail: Q1 2024 8 (1) (1) CRE (incl. multifamily) by Property Type CRE - Office Owner- occupied 41.8% Non-owner occupied 58.2% Retail 16.2% Office 10.7% Warehouse 14.5% Multi-family 11.8% C-Store 10.5% Auto Sales/ Repair 3.9% Hotel/ Motel 4.4% Industrial 3.9% Restaurant Bar 4.0% Healt
Slide 9: CRE Construction and Development: Q1 2024
CRE Construction and Development: Q1 2024 9 (1) (1) • Total committed exposure for CRE construction loans was $1.4 billion at March 31, 2024 and December 31, 2023 • The largest category of CRE construction loans was Land – Commercial at $380.9 million outstanding, or 36.6%, of CRE construction loans
Slide 10: Asset Quality Summary
Asset Quality Summary 10 Nonperforming Loans by Type (1) Combined represents the simple addition of legacy balances for 2022; estimated. Allowance for credit losses on loans: • $96.3 million, or 1.22% of total loans, at March 31, 2024, compared to $91.7 million, or 1.16% of total loans, as of Decemb
Slide 11: Regulatory Capital Ratios
Regulatory Capital Ratios 11 (1) Refer to the calculation of this non-GAAP financial measure and a reconciliation to its most directly comparable GAAP financial measure in the appendix. Minimum Required Plus Capital Conservation Buffer Consolidated Capital Ratios Estimated Total Capital Ratio (to ri
Slide 12: Liquidity Profile
12 Liquidity Profile Stellar is well-positioned to manage through the current environment Sources of Liquidity at March 31, 2024 Sources of Liquidity Estimated Uninsured Deposits at March 31, 2024 (1) Brokered deposit capacity is governed by internal policy limits. (Dollars in millions) Cash 400$ Un
Slide 13: Key Takeaways
13 Key Takeaways Excellent core funding profile Strong earnings power and franchise value in one of the best markets in the U.S. Key success factors: Credit performance and risk management Significant financial flexibility Positioned for rapid capital-build to continue
Slide 14: Diverse and Strong Markets of Operation
29.8 27.2 12.0 10.2 8.6 7.8 7.6 6.7 5.7 JP Morgan Wells Fargo BofA Zions PNC Stellar Cadence Frost Capital One Prosperity Diverse and Strong Markets of Operation 14 Houston is Diverse, with Significant Economic Tailwinds Greater Houston Market Top 10 Bank by Deposits in Houston Region(1) ($B) Note:
Slide 15: Diversified and Growing Economy
Diversified and Growing Economy 15 1) Data is preliminary as of February 2024, from the U.S. Bureau of Labor Statistics Source: U.S. Bureau of Labor Statistics Houston vs. U.S. Job Change by Industry (Feb ‘23 – Feb. ‘24)(1) Diversified Economy by Job Sector(1) Commentary Houston’s economy has beco
Slide 16: Houston is a Resilient Market
2.0 3.0 4.0 5.0 6.0 7.0 2.0 2.5 3.0 3.5 2007 2009 2011 2013 2015 2017 2019 2021 2023 Houston is a Resilient Market 16 Since the Great Recession, Houston has proven its resiliency, weathering economic cycles and natural disasters − Houston welcomed 2.1 million new residents and created over 965 tho
Slide 17: Houston's Growth Projected to Continue
92,198 (150,000) (100,000) (50,000) 0 50,000 100,000 150,000 D a lla s H o u s to n T a m p a A tl a n ta P h o e n ix M ia m i D e n v e r W a s h in g to n B o s to n M in n e a p o lis R iv e rs id e S e tt le B a lt im o re P h ila d e lp h ia D e tr o it S a n D ie g o S a n F ra n c is c o C h
Slide 18: Housing Market and Cost of Living
$92,406 $89,429 $85,119 $82,998 $75,557 $73,203 $75,874 New York MSA Los Angeles MSA Chicago MSA Dallas MSA Houston MSA Texas U.S. $800,000 $982,500 $363,500 $450,000 $339,000 $344,800 $420,357 New York Los Angeles Chicago Dallas Houston Texas U.S. 8.7x 11.0x 4.3x 5.4x 4.5x 4.7x 5.5x New York MSA Lo
Slide 19: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation(1) 19 (1) See the disclosure under the heading “GAAP Reconciliation of Non-GAAP Financial Measures” on slide 2 regarding the use of non-GAAP financial measures. (2) Interim periods annualized. Total shareholders’ equity $ 1,530,698 $ 1,521,018 Less: Goodw ill and co
Slide 20: Be Stellar.
ol, Be Stellar. NYSE: STEW stellar BANCORP, INC.