Five Star Bancorp · NASDAQ:FSBC
Five Star Bancorp — Q3 2021 Earnings Presentation
27 slides from Five Star Bancorp's earnings presentation, Oct 26, 2021
Slide 1: Investor Presentation Third Quarter 2021
Investor Presentation Third Quarter 2021
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 • Company Overview • Most Recent Quarter Highlights • Loans and Credit Quality • Deposit and Capital Overview • Financial Results October 2021 Investor Presentation | 3
Slide 4: Company Overview
Company Overview October 2021 Investor Presentation | 4
Slide 5: Company Overview
Company Overview Nasdaq: Headquarters: Asset Size: Loans: Deposits: Bank Branches: October 2021 Investor Presentation | 5 CA Redding 5 5 Chico 6 Yuba City 80 7 Roseville 1 Elk Grove 4 Sacramento Santa Rosa Rancho Cordova 3 2 Bank Branch (7) Non - Depository Office (2) 505 FSBC Rancho Cordova, Califo
Slide 6: Executive Team
Executive Team October 2021 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 Michael Riz
Slide 7: Consistent and Organic Asset Growth
$440 $547 $565 $604 $811 $840 $973 $1,272 $1,480 $1,954 $2,151 $2,328 $2,434 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Core PPP Loans (2) Consistent and Organic Asset Growth October 2021 Investor Presentation | 7 CAGR (1) 5 years 10 years Total Assets 23.71% 18.67% Ex
Slide 8: Most Recent Quarter Highlights
Most Recent Quarter Highlights October 2021 Investor Presentation | 8 Profitability • Net income was $11.0 million for the quarter ended September 30, 2021, compared to $9.8 million for the quarter ended June 30 , 2021. • Return on average assets (“ROAA”) and return on average equity (“ROAE”) were 1
Slide 9: Loans and Credit Quality
Loans and Credit Quality October 2021 Investor Presentation | 9
Slide 10: Consistent Loan Growth
Consistent Loan Growth October 2021 Investor Presentation | 10 Note: Balances are end of period, net of fees, and exclude loans held for sale. Yields are based on average balance and annualized quarterly interest income. References to PPP are to the Paycheck Protection Program. (1) CAGR is based upo
Slide 11: Loan Portfolio Composition
Loan Portfolio Composition October 2021 Investor Presentation | 11 Note: Dollars are in millions. Balances are net book value at period end and exclude loans held for sale. References to PPP a re to the Paycheck Protection Program. (1) Types of collateral in the “all other types” category are those
Slide 12: CRE Collateral Values
CRE Collateral Values October 2021 Investor Presentation | 12 30% 11% 9% 9% 8% 6% 6% 6% 15% 14% 5% 8% 2% 5% 2% 21% 1% 8% 78% 75% 75% 75% 81% 94% 69% 73% 95% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Manufactured home community Multifamily Retail Office Faith based Industrial Mini storage Mixed use
Slide 13: Loan Portfolio Diversification
Loan Portfolio Diversification We focus primarily on commercial lending, with an emphasis on commercial real estate . We offer a variety of loans to small and medium - sized businesses, professionals, and individuals, including commercial real estate, commercial land and construction, and farmland l
Slide 14: Loan Rollforward
Loan Rollforward October 2021 Investor Presentation | 14 Note: Dollars are in millions. Period end loan balances are net of allowance for loan losses and exclude loans held for sale. References to PPP are to the Paycheck Protection Program. Column1 Q1 2021 Q2 2021 Q3 2021 Beginning Balance 1,481$ 1,
Slide 15: 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 operating stateme
Slide 16: Allocation of Allowance for Loan Losses
Allocation of Allowance for Loan Losses October 2021 Investor Presentation | 16 Note: Data is in thousands. 2021 financial results are unaudited. (dollars in thousands) Allowance for Loan Losses Amount % of Total Amount % of Total Amount % of Total Amount % of Total Collectively evaluated for impair
Slide 17: Risk Grade Migration and Classified Loans
98.94% 96.01% 96.09% 96.36% 96.60% 0.92% 1.61% 1.53% 1.33% 1.24% 0.14% 2.38% 2.38% 2.31% 2.16% Q4 2019 Q4 2020 Q1 2021 Q2 2021 Q3 2021 % of Loan Portfolio Outstanding, by Risk Grade Pass Watch Substandard Doubtful Risk Grade Migration October 2021 Investor Presentation | 17 Note: 2021 financial resu
Slide 18: Deposit and Capital Overview
Deposit and Capital Overview October 2021 Investor Presentation | 18
Slide 19: Diversified Funding
30.9% 30.5% 28.9% 29.5% 39.0% 40.3% 40.1% 41.3% 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 84.3% 89.7% 83.2% 90.5% 84.5% 78.0% 76.8% 78.9% 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Diversified Funding October 2021 Investor Presentation | 19 Total Deposits (1) = $2.2 Billion 98.2% of Tot
Slide 20: Strong Deposit Growth and Cost of Funds
Strong Deposit Growth and Cost of Funds October 2021 Investor Presentation | 20 CAGR (1) 5 years Total Deposits 23.30% Note: Dollars are in millions and balances are end of period. Cost of funds is based on average balance and annualized quarterly interest expense. 2021 financial results are unaudit
Slide 21: Capital Ratios
Capital Ratios October 2021 Investor Presentation | 21 Tier 1 Leverage Ratio Common Equity Tier 1 to Risk - Weighted Assets (“RWA”) Total Capital to RWA Tier 1 Capital to RWA 9.66% 8.26% 6.81% 7.51% 6.58% 9.54% 2016 2017 2018 2019 2020 Q3 2021 10.81% 9.32% 7.48% 8.21% 8.98% 12.84% 2016 2017 2018 201
Slide 22: Financial Results
Financial Results October 2021 Investor Presentation | 22
Slide 23: Earnings Track Record
Earnings Track Record October 2021 Investor Presentation | 23 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Net Income ($MM) $7.0 $10.1 $9.3 $9.5 $10.3 $9.8 $11.0 Qrtrly Basic Earnings Per Share ("EPS") $0.72 $1.05 $0.94 $0.86 $0.93 $0.67 $0.64 Qrtrly Diluted EPS $0.72 $1.05 $0.94 $0.86 $0.93 $0.67 $0.6
Slide 24: Operating Metrics
Operating Metrics October 2021 Investor Presentation | 24 Efficiency Ratio Return on Average Assets Total Income Before Taxes Net Interest Margin 3.72% 3.99% 3.93% 3.98% 3.68% 3.63% 2016 2017 2018 2019 2020 2021 YTD 40.32% 37.94% 42.27% 38.63% 37.92% 43.77% 2016 2017 2018 2019 2020 2021 YTD $16.4M $
Slide 25: Shareholder Returns
$2.60 $2.92 $3.08 $3.40 $3.57 $2.18 2016 2017 2018 2019 2020 2021 YTD 1.99% 2.34% 1.99% 2.15% 1.95% 1.88% 2016 2017 2018 2019 2020 2021 YTD Shareholder Returns October 2021 Investor Presentation | 25 Note: All 2021 figures are through September 30, 2021. 2021 financial results are unaudited. ROAE EP
Slide 26: 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 custome r e mpathy. We are dedicated to serving real estate, agricultural, faith - based, and small to medium - sized enterprises. We aim to consistentl y deliver value that meets or
Slide 27: 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 this non - GAAP financial measure provide useful information to management and investors that is supple