Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Non-Deal Roadshow (November 2018)
15 slides from Stellar Bancorp's roadshow presentation, Nov 9, 2018
Slide 1: East Coast Tour November 13-15, 2018
East Coast Tour November 13-15, 2018 NASDAQ: CBTX
Slide 2: No Offer or Solicitation; Non-GAAP; Forward-Looking Statements
2 NO OFFER OR SOLICITATION This communication does not constitute an offer to sell, a solicitation of an offer to sell, the solicitation or an offer to buy any securities or a solicitation or any vote or approval. There will be no sale of securities in any jurisdiction in which such an offer, solici
Slide 3: Company Overview
Founded in 2007 Completed IPO in November 2017 Primarily a business bank, ~84% commercial loans(1) as of September 30, 2018 Seasoned executive management team History of organic growth, mergers of equals, and acquisitions Diverse and attractive loan portfolio Low-cost core funding with ~43% noninter
Slide 4: Strengths & Investment Rationale
Strengths & Investment Rationale 4 Strength of management team Significant insider ownership Relationship-based business bank with a strong credit culture Key emphasis on developing core loan and deposit relationships led by bankers who support clients through tailored financial solutions Strength o
Slide 5: Third Quarter Highlights
5 Third Quarter Highlights Net income of $0.52 per diluted share for the quarter ended September 30, 2018, compared to $0.45 per diluted share, for the quarter ended September 30, 2017. Provision for loan losses was a recapture of $1.1 million, or $0.04 per diluted share, for the third quarter of 20
Slide 6: Growth & Transformation
6 Growth & Transformation 2013 2017 Beaumont Houston Transformation of Loan Portfolio Note: Figures as of year-end 12/31. 2018 Q3 as of 9/30/2018 2018 Q3 Asset and Earnings Growth ($ 000) 58.6% 41.4% 70.1% 29.9% $2,451 $2,629 $2,883 $2,952 $3,081 $3,190 0.65% 0.90% 0.85% 0.94% 0.93% 1.62% 0.00% 0.20
Slide 7: Attractive, Low-Cost Core Deposit Base
The Bank Built or Business Attractive, Low-Cost Core Deposit Base 7 Stable Core Deposit Base (1) Proven ability to generate low-cost core deposits(2) to fund loan growth 91.82% loan to deposit ratio as of September 30, 2018 Business banking focus combined with relationship approach results in: ~43%
Slide 8: Diversified Loan Portfolio
The Bank Built or Business Diversified Loan Portfolio 8 Loan Composition Over Time(1) Total Commercial loans (2) represented approximately 84% of total loans as of September 30, 2018 Core focus on lending to professionals and local small- and mid-sized businesses Key emphasis on developing core rela
Slide 9: Construction & Development Loans
The Bank Built or Business Construction & Development Loans 10 (1) Construction & Development Loan components as a % of CBTX, Inc. Tier 1 Capital Construction and Development Loan Components As of September 30, 2018 ($ 000) (% Tier 1 Capital) (1) Construction Community Development Multifamily $ 132.
Slide 10: Strong Credit Culture
The Bank Built or Business Strong Credit Culture 11 Chief Credit Officer with 40 years of experience Seasoned Regional Credit Officers located in Houston and Beaumont Centralized underwriting, tiered approval requirements based on aggregate relationship size: Officer credit authority, credit executi
Slide 11: Revenue Growth & Efficiency
The Bank Built or Business Revenue Growth & Efficiency 12 Increasing net interest margin Asset sensitive, with 54.8% variable rate loans as of September 30, 2018 Increasing revenue and improving efficiency ratio (1) Historical Revenue and NIM (1) Improving Efficiency (1)(2) ($ in thousands) Efficien
Slide 12: Growth Strategy
13 Growth Strategy Organic Growth: Continue hiring experienced bankers New Southeast Houston Branch Q4 2018 Dallas Loan and Deposit Production Office Q4 2018 Areas of additional expansion within certain lending verticals: Commercial and industrial SBA lending Talent recruitment and retention efforts
Slide 13: Our Brand Promise
14 Our Brand Promise Our Vision Here to Serve. Our Positioning To experienced business owners, CommunityBank of Texas, N.A. is the financial partner that delivers a better banking experience. Our Personality Resourceful, Trustworthy, Friendly Responsive, Strong
Slide 14: Appendix
Appendix
Slide 15: Non-GAAP Reconciliation
16 Non-GAAP Reconciliation Excludes the dilutive effect, if any, of 234,922, 260,322, 248,314, 647,074, 575,326 and 593,812 shares of common stock issuable upon exercise of outstanding stock options as of September 30, 2018 and December 31, 2017, 2016, 2015, 2014 and 2013, respectively (2) Excludes