Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — KBW Texas Field Trip 2018
17 slides from Stellar Bancorp's conference presentation, May 21, 2018
Slide 1: KBW Texas Field Trip May 21-23, 2018
V20180507 (Final) NASDAQ: CBTX KBW Texas Field Trip May 21-23, 2018
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, ~85% commercial loans(1) as of March 31, 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% noninterest-
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, SS
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: First Quarter Highlights
6 First Quarter Highlights Net income of $0.37 per diluted share for the quarter ended March 31, 2018, compared to $0.31 per diluted share, for the quarter ended March 31, 2017 Loans increased $44.5 million during the first quarter of 2018, a 8% annualized growth rate for the quarter ~43% noninteres
Slide 7: Growth & Transformation
7 Growth & Transformation 2013 2017 Beaumont Houston Assets and Earnings Growth ($ in Millions) Transformation of Loan Portfolio Note: Figures as of year-end 12/31. 2018 Q1 as of 3/31/2018 2018 Q1 58.6% 41.4% 70.1% 29.9% $2,451 $2,629 $2,883 $2,952 $3,081 $3,075 0.65% 0.90% 0.85% 0.94% 0.93% 1.20% 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 90.6% loan to deposit ratio as of March 31, 2018 Business banking focus combined with relationship approach results in: ~ 43% noninterest
Slide 9: Diversified Loan Portfolio
The Bank Built or Business Diversified Loan Portfolio 9 Loan Composition Over Time(1) Commercial loans (2) represented approximately 85% of total loans as of March 31, 2018 Core focus on lending to professionals and local small- and mid-sized businesses Key emphasis on developing core relationships
Slide 10: Core Focus on Commercial Loans
The Bank Built or Business Core Focus on Commercial Loans 10 Commercial Loans Outstanding by Type ($1.998B) Note: Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans Note: Figures as of March 31, 2018. Construction & Development ($436M) Commerci
Slide 11: Construction & Development Loans
The Bank Built or Business Construction & Development Loans 11 Note: C & D components as a % of CBTX, Inc Tier 1 Capital Note: Figures as of March 31, 2018 As of March 31, 2018 Construction & Development Loan Portfolio Segmentation ($000s) (% Tier 1 Capital) Construction Community Development Multif
Slide 12: Strong Credit Culture
Strong Credit Culture Chief Credit Officer with 39 years of experience ‒ Seasoned Regional Credit Officers located in Houston and Beaumont Centralized underwriting, tiered approval requirements based on aggregate relationship size: ‒ ‒ Officer credit authority, credit executive committee, and di
Slide 13: Revenue Growth & Efficiency
The Bank Built or Business Revenue Growth & Efficiency 13 Stable net interest margin Asset sensitive, with 56.6% variable rate loans as of March 31, 2018 Increasing revenue and improving efficiency ratio (1) Historical Revenue and NIM Improving Efficiency (1) ($ in thousands) Efficiency efforts: Len
Slide 14: Growth Strategy
14 Growth Strategy Organic Growth: Continue hiring experienced bankers Areas of additional expansion within certain lending verticals: Commercial and industrial Medical SBA lending Talent recruitment and retention efforts benefit from being public Dedicated focus on gathering core deposits: ~82% of
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
Slide 16: Appendix
Appendix
Slide 17: Non-GAAP Reconciliations
17 Non-GAAP Reconciliations Excludes the dilutive effect, if any, of 260,322, 260,322, 248,314, 647,074, 575,326 and 593,812 shares of common stock issuable upon exercise of outstanding stock options as of March 31, 2018 and December 31, 2017, 2016, 2015, 2014 and 2013, respectively (2) Excludes the