Slide 1: Fourth Quarter 2024 Earnings Presentation
Fourth 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) Deposit market share based on FDIC data as of June 30, 2024. (2) Houston Region defined as the Houston-Pasadena-The Woodlands and Beaumont-Port Arthur MSAs; Excludes non-retail branches (3) Refer to the calculation of this non-GAAP financial measure and a reconciliation to its most directly co
Slide 4: Focused on Serving the Houston Region
$30.1 $25.3 $13.2 $9.0 $8.6 $7.8 $5.7 $5.7 $5.7 $5.3 $3.4 $3.0 $2.6 $2.4 $2.3 $2.1 $1.9 JPMorgan Wells Fargo BofA Zions PNC Frost Prosperity Cadence Woodforest Capital One Third Coast Comerica Truist BOK Regions Texas Capital Texas Independent Focused on Serving the Houston Region 4 Note: Deposit ma
Slide 5: 2024 Highlights
5 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. Solid Profitability: Net income for the full year 2024 was $117.6 million, or diluted earnings per share of $2.20, whi
Slide 6: Deposit Summary
Deposit Summary 6 Deposit Portfolio Composition Deposits (in millions)(1) Maintaining Discipline Navigating Competitive Deposit Market As of December 31, 2024: • Noninterest-bearing deposits to total deposits: 39.2% • Q4 cost of deposits: 2.02% • Q4 cost of funds: 2.10% • Loan to deposit ratio: 81.5
Slide 7: Loan Summary
Loan Summary 7 (1) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures in the appendix. . Loan Portfolio Composition (1) (1) Q4 2024 Q3 2024 Commercial and Industrial (“C&I”) 1,362,260$ 1,350,753$ Nonowner-occup
Slide 8: Asset Quality Summary
Asset Quality Summary 8 Nonperforming Loans by Type (1) Combined represents the simple addition of legacy balances for 2022; estimated. Nonperforming loans to total loans: • 0.50% at December 31, 2024 compared to 0.43% as of September 30, 2024 Allowance for credit losses on loans to nonperformin
Slide 9: CRE and Office Detail: Q4 2024
CRE and Office Detail: Q4 2024 9 (1) (1) CRE (incl. multifamily) by Property Type CRE - Office Owner- occupied 40.7% Non-owner occupied 59.3% Retail 638,827$ 1,245$ 16.5% Warehouse 558,882 746 14.4% Convenience Store (C-Store) 430,850 1,318 11.1% Multi-family 410,491 1,918 10.6% Office 408,571 807 1
Slide 10: CRE Construction and Development: Q4 2024
CRE Construction and Development: Q4 2024 10 (1) (1) • Total committed exposure for CRE construction loans was $1.18 billion at December 31, 2024 and $1.23 at September 30, 2024. • The largest category of CRE construction loans was Land – Commercial at $312.9 million outstanding, or 37.0%, of CRE co
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: Key Takeaways
12 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 13: Diverse and Strong Markets of Operation
$30.1 $25.3 $13.2 $9.0 $8.6 $7.8 $5.7 $5.7 $5.7 JPMorgan Wells Fargo BofA Zions PNC Frost Prosperity Cadence Woodforest Diverse and Strong Markets of Operation 13 Houston is Diverse, with Significant Economic TailwindsGreater Houston Market Top 10 Bank by Deposits in Houston Region(1) ($B) Note: Dep
Slide 14: Diversified and Growing Economy
Diversified and Growing Economy 14 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 15: Houston is a Strong and 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 Strong and Resilient Market 15 Since the Great Recession, Houston has proven its resiliency, weathering economic cycles and natural disasters − Houston welcomed 2.1 million new residents and created o
Slide 16: Houston's Growth Projected to Continue
92,198 (150,000) (100,000) (50,000) 0 50,000 100,000 150,000 D al la s H ou st on Ta m pa At la nt a Ph oe ni x M ia m i D en ve r W as hi ng to n Bo st on M in ne ap ol is R iv er si de Se at tle Ba lti m or e Ph ila de lp hi a D et ro it Sa n D ie go Sa n Fr an ci sc o C hi ca go Lo s An ge le s N
Slide 17: 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 18: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation(1) 18 (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 $ 1,610,465 $ 1,626,123 $ 1,610,465 $ 1,521,01
Slide 19: Be Stellar.
ol, Be Stellar. NYSE: STEL stellar BANCORP, INC. 19