Five Star Bancorp · NASDAQ:FSBC
Five Star Bancorp — Q1 2023 Earnings Presentation
32 slides from Five Star Bancorp's earnings presentation, Apr 25, 2023
Slide 1: Investor Presentation First Quarter 2023
Investor Presentation First Quarter 2023
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 con
Slide 3: Agenda
Agenda First Quarter 2023 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 2023 Investor Presentation | 4
Slide 5: Company Overview
Company Overview Nasdaq: Headquarters: Asset Size: Loans Held for Investment: Deposits: Bank Branches: First Quarter 2023 Investor Presentation | 5 FSBC Rancho Cordova, California $3.4 billion $2.9 billion $2.9 billion 7 Note: Balances are as of March 31, 2023. Five Star is a community business bank
Slide 6: Executive Team
Executive Team First Quarter 2023 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 2023 Investor Presentation | 7
Slide 8: Consistent and Organic Asset Growth
$565 $604 $811 $840 $973 $1,272 $1,480 $1,954 $2,557 $3,227 $3,397 $1,806 $2,535 $148 $22 Total Assets Excluding PPP Loans PPP Loans 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q1 2023 Consistent and Organic Asset Growth First Quarter 2023 Investor Presentation | 8 Note: Dollars are in million
Slide 9: Financial Highlights
Financial Highlights First Quarter 2023 Investor Presentation | 9 (dollars in thousands) For the three months ended 3/31/2023 12/31/2022 3/31/2022 Profitability Net income $ 13,161 $ 13,282 $ 9,862 Return on average assets ("ROAA") 1.65 % 1.70 % 1.53 % Return on average equity ("ROAE") 20.94 % 21.50
Slide 10: Financial Highlights - March 31, 2023
Financial Highlights - March 31, 2023 First Quarter 2023 Investor Presentation | 10 Growth • Continued balance sheet growth with $78.5 million of growth in loans held for investment and $138.4 million in deposit growth since December 31, 2022. Funding • Non-interest-bearing deposits comprised 28.65%
Slide 11: Loans and Credit Quality
Loans and Credit Quality First Quarter 2023 Investor Presentation | 11
Slide 12: Consistent Loan Growth
To ta l L oa ns (M ill io ns ) $148 $22 $2 5.28% 5.45% 4.96% 4.82% 4.53% 4.48% 4.75% 5.12% 5.36% Non-PPP Loans PPP Loans Average Loan Yield Average Loan Yield Excluding PPP Loans Consistent Loan Growth First Quarter 2023 Investor Presentation | 12 Note: Loan balances are end of period loans held for
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition First Quarter 2023 Investor Presentation | 13 Commercial real estate 85.2% Commercial land and development 0.5% Commercial construction 3.4% Residential construction 0.3% Residential 0.8% Farmland 1.8% Secured 6.0% Unsecured 0.9% PPP 0.0% Consumer and other 1.1% Types of c
Slide 14: CRE Collateral Values
$709M $305M $267M $202M $171M $157M $152M $142M $338M $1,230M $525M $495M $402M $410M $306M $405M $305M $700M Loan Balance Collateral Value Manufactured home community RV Park Retail Multifamily Industrial Mini storage Faith-based Office All other types $0M $200M $400M $600M $800M $1,000M $1,200M $1
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 loan
Slide 16: Loan Rollforward
Loan Rollforward First Quarter 2023 Investor Presentation | 16Note: Dollars are in millions. Beginning and ending balances are as of period end, before allowance for credit losses, including deferred loan fees, and excluding loans held for sale. Q4 2022 Q1 2023 Beginning Balance $ 2,583 $ 2,791 Orig
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 operating stateme
Slide 18: Allocation of Allowance for Credit Losses
Allocation of Allowance for Credit Losses First Quarter 2023 Investor Presentation | 18 (dollars in thousands) December 31, 2022 March 31, 2023 Allowance for Credit Losses Amount % of Total Amount % of Total Real estate: Commercial $ 19,216 67.69 % $ 26,846 78.56 % Commercial land & development 54 0
Slide 19: Risk Grade Migration
Risk Grade Migration First Quarter 2023 Investor Presentation | 19 Classified Loans (Loans Rated Substandard or Doubtful) (dollars in thousands) 2021 2022 Q1 2023 Real estate: Commercial $ 9,256 $ 106 $ 102 Commercial land & development — — — Commercial construction — — — Residential construction —
Slide 20: Deposit and Capital Overview
Deposit and Capital Overview First Quarter 2023 Investor Presentation | 20
Slide 21: Deposit Composition
Government 24.91% Other 14.78% Practices & Professional Services 13.58% Commercial Real Estate & Construction 11.59% Small to Medium Sized Business 9.30% Manufactured Home Communities 7.57% Non-Profit 7.09% Healthcare 6.35%Faith Based 2.29% Venture 1.36% Agribusiness 0.70% SBA & Wholesale Partners 0
Slide 22: Diversified Funding
Diversified Funding First Quarter 2023 Investor Presentation | 22 Total Deposits(1) = $2.9 billion 93.1% of Total Liabilities Liability Mix 1. Balance as of March 31, 2023. 2. Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Loan(2) to Deposit Ratio No
Slide 23: Strong Deposit Growth
$1.2B $1.3B $1.8B $2.3B $2.8B $2.9B $600M $708M $889M $1,001M $1,228M $1,437M$337M $389M $701M $902M $971M $837M $124M $119M $146M $279M $240M $274M $100M $97M $48M $104M $343M $373M Money Market & Savings Non-Interest-Bearing Demand Interest-Bearing Demand Time Deposits 2018 2019 2020 2021 2022 Q1
Slide 24: Capital Ratios
Capital Ratios First Quarter 2023 Investor Presentation | 24 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. 6.81% 7.51% 6.58% 9.47% 8.60% 8.54% 2018 2019 2020 2021 2022 Q1 2023 7.48% 8.21% 8.98% 11.44% 8.
Slide 25: Financial Results
Financial Results First Quarter 2023 Investor Presentation | 25
Slide 26: Earnings Track Record
Earnings Track Record First Quarter 2023 Investor Presentation | 26 $14.5M $16.3M $18.8M $20.0M $19.4M $13.5M $14.0M $16.5M $18.8M $18.5M Pre-tax, pre-provision income Pre-tax income Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 $0.0M $2.5M $5.0M $7.5M $10.0M $12.5M $15.0M $17.5M $20.0M $22.5M 1. A reconc
Slide 27: Operating Metrics
Operating Metrics First Quarter 2023 Investor Presentation | 27 Efficiency RatioNet Interest Margin 3.93% 3.98% 3.68% 3.64% 3.75% 3.75% 2018 2019 2020 2021 2022 2023 YTD 42.27% 38.63% 37.92% 42.46% 36.90% 36.43% 2018 2019 2020 2021 2022 2023 YTD Note: All 2023 figures are through March 31, 2023. Tot
Slide 28: Non-interest Income and Expense Comparison
Non-interest Income and Expense Comparison First Quarter 2023 Investor Presentation | 28 (dollars in thousands) For the three months ended 3/31/2023 12/31/2022 3/31/2022 Non-interest Income Service charges on deposit accounts $ 117 $ 97 $ 108 Net gain on sale of securities — — 5 Gain on sale of loan
Slide 29: Shareholder Returns
Shareholder Returns First Quarter 2023 Investor Presentation | 29 ROAA ROAE EPS (basic and diluted) Value per Share (book and tangible book(1)) Note: All 2023 figures are through March 31, 2023. 1. A reconciliation of this non-GAAP measure is set forth in the appendix. 1.99% 2.15% 1.95% 1.86% 1.57%
Slide 30: Five Star Bank proudly supports women in business and those serving our region’s most
Five Star Bank proudly supports women in business and those serving our region’s most vulnerable. Our customers advocate for communities, drive collaboration, and foster responsive, community- based programs that promote healthy relationships while supporting survivors of sexual assault, domestic vi
Slide 31: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non-GAAP Reconciliation (Unaudited) The Company uses financial information in its analysis of the Company's performance that is not in conformity with GAAP. The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplement
Slide 32: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non-GAAP Reconciliation (Unaudited) First Quarter 2023 Investor Presentation | 32 (dollars in millions) Total assets, excluding PPP loans 12/31/2020 12/31/2021 12/31/2022 3/31/2023 Total assets $ 1,954 $ 2,557 $ 3,227 $ 3,397 Less: PPP loans 148 22 — — Total assets, excluding PPP loans $ 1