Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Investor Presentation (September 2020)
22 slides from Stellar Bancorp's investor presentation, Sep 21, 2020
Slide 1: CBTX, Inc. Investor Presentation
CBTX, Inc. Investor Presentation September 21 – 23, 2020 NASDAQ: CBTX
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
2 SAFE HARBOR STATEMENT AND NON-GAAP FINANCIAL MEASURES 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, tangible equity to tangible assets
Slide 3: Company Snapshot
The Bank Built or Business 3 • Gross loans increased from March by $269.4 million due to originations of $336.1 million of PPP loans during Q2 offset by paydowns/payoffs • Total commercial loans (1) were 86.7% of total loans at June 30, 2020 • At June 30, 2020, 76.4% of loans are Houston-based • Foc
Slide 4: COVID-19 Response
4 COVID-19 RESPONSE • Activated business continuity plan the first part of March • Implemented social distancing in our facilities allowing flexible work arrangements and restricted travel • Deployed remote working strategy to allow 63% of employees to operate remotely • Granted additional PTO • Pus
Slide 5: Financial Highlights
5 FINANCIAL HIGHLIGHTS (1) PPP loans are included in Loans, Net above. See page 13 for further details. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Pre-provision net revenue is net income, with the provision for credit losses and income tax expense added back. Financial H
Slide 6: Financial Highlights (Continued)
6 FINANCIAL HIGHLIGHTS (Continued) (1) Annualized. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Efficiency ratio is calculated by dividing noninterest expense by the sum of net interest income and noninterest income. Financial Highlights Q2 2020 Q1 2020 Q4 2019 Q2 vs Q1 20
Slide 7: Capital and Liquidity
The Bank Built or Business CAPITAL AND LIQUIDITY 7 REVENUE GROWH • Stable net interest margin (NIM) • Asset sensitive, with 54% variable rate loans as of March 31, 2020 • Increasing revenue and improving efficiency ratio (2) (1) See Appendix for reconciliation of non-GAAP financial measure. • Total
Slide 8: Deposits
The Bank Built or Business 8 Stable Core Deposit(2) (1) Core deposits defined as total deposits less jumbo time deposits (time deposits over $100,000). (2) Figures as of year end 12/31. Q2 2020 as of 6/30/2020. DEPOSITS • Gross loans increased from March by $269.4 million due to originations of $336
Slide 9: Loan Portfolio
The Bank Built or Business 9 Loan Portfolio Composition(2) (1) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. (2) Figures as of year end 12/31. Q2 2020 as of 6/30/2020. LOAN PORTFOLIO • Gross loans increased from March by $269.4 million du
Slide 10: Commercial Loans
The Bank Built or Business COMMERCIAL LOANS 10 Multi-family ($418M) • Operating lines of credit, fixed asset financing and real estate loans to industrial companies involved in the construction, modification, support and maintenance of petrochemical plants Industrial Construction/Equipment Rental Mu
Slide 11: Construction and Development Loans
The Bank Built or Business CONSTRUCTION AND DEVELOPMENT LOANS 11 (1) Total capital of CommunityBank of Texas, N.A., the wholly-owned subsidiary of the Company. (2) Average of full commitment amount to appraised value of collateral. Construction and Development Loans - 6/30/2020 Balance (000) Percent
Slide 12: Oil and Gas Loans
The Bank Built or Business OIL AND GAS LOANS 12 • DIRECT - Loans to an entity with more than 50% of its revenue related to the well-head, oil in the ground or extracting oil or gas. This includes any activity, product or service related to the oil and gas industry, such as exploration and production
Slide 13: Paycheck Protection Program
13 PAYCHECK PROTECTION PROGRAM (1) All PPP loans are classified as Commercial and Industrial loans per regulatory guidelines. PPP Loans (1) Amount (000) Number Average (000) Yield Analysis Q2 2020 Average Outstanding Balance (000) Interest Earned (000) Average Yield Loans $0 - $350,000 132,033 $ 1,7
Slide 14: Loan Deferrals
The Bank Built or Business 14 LOAN DEFERRALS • Leveraged our experience from past hurricanes to develop our program for working with our customers through the impact of the pandemic • Helping to help customers maintain financial strength through the pandemic as much as possible and in line with regu
Slide 15: COVID-19 At Risk Loans
The Bank Built or Business COVID-19 AT RISK LOANS 15 • Participating in the Paycheck Protection Program offered under the Cares Act •____ PPP loans outstanding, with average loan size of ___ at June 30, 2020 • SBA origination fees of $11.2 M through 6/30/2020. • Processing additional applications (1
Slide 16: Allowance for Credit Losses
The Bank Built or Business ALLOWANCE FOR CREDIT LOSSES 16 • Participating in the Paycheck Protection Program offered under the Cares Act •____ PPP loans outstanding, with average loan size of ___ at June 30, 2020 • SBA origination fees of $11.2 M through 6/30/2020. • Processing additional applicatio
Slide 17: NPA and Net Charge-Offs
The Bank Built or Business NPA AND NET CHARGE-OFFS 17 REVENUE • Net interest margin (NIM) remained strong, impacted by lower interest rates and lower yielding PPP loans • Average loan yield (excluding PPP loans) of 4.75% for Q2 2020 • • Average loan yield on PPP loans of 2.28% • Cost of interest bea
Slide 18: Revenue and Efficiency
The Bank Built or Business REVENUE AND EFFICIENCY 18 REVENUE • Net interest margin (NIM) remained strong, impacted by lower interest rates and lower yielding PPP loans • Average loan yield (excluding PPP loans) of 4.75% for Q2 2020 • • Average loan yield on PPP loans of 2.28% • Cost of interest bear
Slide 19: CommunityBank of Texas Vision and Positioning
19 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 20: Appendix
APPENDIX
Slide 21: Non-GAAP Reconciliations
21 NON-GAAP RECONCILIATIONS Our management uses certain non-GAAP financial measures to evaluate performance. We have included in this presentation information related these non-GAAP financial measures for the applicable periods presented. The following tables reconcile, as of the dates set forth bel
Slide 22: Non-GAAP Reconciliations (Continued)
22 NON-GAAP RECONCILIATIONS (Continued) (000) 3/31/2020 6/30/2020 12/31/2019 Total Shareholders' Equity $ 537,356 $ 536,874 $ 535,721 Goodwill (80,950) (80,950) (80,950) Other Intangibles (4,496) (4,700) (4,938) Tangible Equity $ 451,910 $ 451,224 $ 449,833 Total Assets 3,901,725 3,425,650 3,478,544