Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Stephens Bank CEO Forum 2018
17 slides from Stellar Bancorp's conference presentation, Sep 25, 2018
Slide 1: Stephens Bank CEO Forum September 24-26, 2018
Stephens Bank CEO Forum September 24-26, 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 June 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 ~44% noninterest-b
Slide 4: Franchise Expansion
2009 2011 2013 2015 4 Franchise Expansion August 2007: County Bancshares, Inc. (County Bank, N.A.) $130mm in assets Initial acquisition and relocation to Beaumont December 2008: Crosby Bancshares, Inc. (Crosby State Bank) $439mm in assets 8 branch locations in east Houston July 2011: Founders Bank,
Slide 5: Strengths & Investment Rationale
Strengths & Investment Rationale 5 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 6: Second Quarter Highlights
6 Second Quarter Highlights Net income of $0.44 per diluted share for the quarter ended June 30, 2018, compared to $0.39 per diluted share, for the quarter ended June 30, 2017 Loans increased $48.1 million during the second quarter of 2018, an 8% annualized growth rate for the quarter ~44% nonintere
Slide 7: Growth & Transformation
7 Growth & Transformation 2013 2017 Beaumont Houston Assets and Earnings Growth ($ in Millions) Transformation of Loan Portfolio Note: Figures as of year-end 12/31. 2018 Q2 as of 6/30/2018 2018 Q2 58.6% 41.4% 70.1% 29.9% $2,451 $2,629 $2,883 $2,952 $3,081 $3,101 0.65% 0.90% 0.85% 0.94% 0.93% 1.44% 0
Slide 8: Attractive, Low-Cost Core Deposit Base
The Bank Built or Business Attractive, Low-Cost Core Deposit Base 8 Stable Core Deposit Base Proven ability to generate low-cost core deposits to fund loan growth 93.6% loan to deposit ratio as of June 30, 2018 Business banking focus combined with relationship approach results in: ~44% noninterest-b
Slide 9: Diversified Loan Portfolio
The Bank Built or Business Diversified Loan Portfolio 9 Loan Composition Over Time(1) Total Commercial loans (2) represented approximately 84% of total loans as of June 30, 2018 Core focus on lending to professionals and local small- and mid-sized businesses Key emphasis on developing core relations
Slide 10: Core Focus on Commercial Loans
The Bank Built or Business Core Focus on Commercial Loans 10 Commercial Loans Outstanding by Type ($2.025B) Note: Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans Note: Figures as of June 30, 2018 Construction & Development ($449M) Commercial
Slide 11: Construction & Development Loans
The Bank Built or Business Construction & Development Loans 11 Note: Construction & Development components as a % of CBTX, Inc. Tier 1 Capital Note: Figures as of June 30, 2018 As of June 30, 2018 Construction & Development Loan Portfolio Segmentation ($millions) (% Tier 1 Capital) Construction Comm
Slide 12: Strong Credit Culture
The Bank Built or Business Strong Credit Culture 12 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 13: Revenue Growth & Efficiency
The Bank Built or Business Revenue Growth & Efficiency 13 Increasing net interest margin Asset sensitive, with 56.7% variable rate loans as of June 30, 2018 Increasing revenue and improving efficiency ratio (1) Historical Revenue and NIM Improving Efficiency (1) ($ in thousands) Efficiency efforts:
Slide 14: Growth Strategy
14 Growth Strategy Organic Growth: Continue hiring experienced bankers Areas of additional expansion within certain lending verticals: Commercial and industrial SBA lending Talent recruitment and retention efforts benefit from being public Dedicated focus on gathering core deposits: ~81% of loan cus
Slide 15: Our Brand Promise
15 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 CommunityBank of texas Business bankin
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Reconciliations
17 Non-GAAP Reconciliations 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 June 30, 2018 and December 31, 2017, 2016, 2015, 2014 and 2013, respectively (2) Excludes the