Slide 1: Five Star Bancorp Investor Presentation July 2021
+ FIVE STAR BANCORP Investor Presentation July 20212
Slide 2: Forward-Looking Statements
2 Forward - Looking Statements This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 . These forward - looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections and
Slide 3: Q2 2021 Overview, Financial Highlights, Company Overview
1. Q2 2021 Overview 2. Financial Highlights 3. Company Overview 3
Slide 4: Q2 2021 Overview
4 • Net interest income growth driven by lower cost of funds, growth in interest - earning assets, and Paycheck Protection Program (“P PP”) forgiveness • Continued balance sheet growth with $103.2 million in non - PPP loan growth and $83.2 million in deposit growth since March 31, 20 21 • Closed Ini
Slide 5: Financial Highlights
Financial Highlights * oC FIVE STAR BANCORE 1k
Slide 6: Total Assets, Total Deposits and Total Loans
Total Deposits ($mm) 6 Total Assets ($mm) $840 $973 $1,272 $1,480 $1,954 $2,328 2016 2017 2018 2019 2020 2021 (YTD) $761 $865 $1,161 $1,312 $1,784 $2,066 $235 $264 $335 $387 $696 $829 2016 2017 2018 2019 2020 2021 (YTD) Total Deposits NIB Total Loans ($mm) $642 $776 $967 $1,187 $1,508 $1,588 $642 $7
Slide 7: Total Loan Growth and Loan Composition
Total Loan Growth ($mm) 4.86% 4.93% 5.28% 5.45% 4.96% 4.84% 2016 2017 2018 2019 2020 2021 (YTD) Yield on Loans Loan Composition, as of June 30, 2021 (1) Real Estate Loan Balances by Geography (1) 7 (1) Net book value at period end, excluding $2.3 million in loans held for sale as of 06/30/2021. Loan
Slide 8: We focus primarily on commercial lending, with an emphasis on commercial real estate
We focus primarily on commercial lending, with an emphasis on commercial real estate . We offer a variety of loans to small - and medium - sized businesses, professionals, and individuals, including commercial real estate, commercial land and construction, commercial, and farmland loans . To a lesse
Slide 9: Asset Quality: NPAs, ALLL and Net Charge-offs
9 Non - performing Assets (“NPAs”) (Including Troubled Debt Restructurings) Allowance for Loan Losses (“ALLL”) / Loans HFI & Net Charge - offs (“NCOs”) / Average Loans • Our primary objective is to maintain a high level of asset quality in our loan portfolio. In order to maintain our strong ass et q
Slide 10: Deposit Growth and Composition
Total Deposit Growth ($mm) Noninterest Bearing (“NIB”) Deposit Growth ($mm) Deposit Composition (1) Cost of Interest - Bearing Liabilities 10 0.35% 0.55% 0.97% 1.26% 0.78% 0.36% 2016 2017 2018 2019 2020 2021 (YTD) $761 $865 $1,161 $1,312 $1,784 $2,066 2016 2017 2018 2019 2020 2021 (YTD) $235 $264 $3
Slide 11: Regulatory Capital Ratios
Common Equity Tier 1 to Risk Weighted Assets 11 Tier 1 Leverage Ratio Tier 1 Capital to Risk Weighted Assets Total Capital to Risk Weighted Assets 10.81% 9.32% 7.48% 8.21% 8.98% 13.39% 2016 2017 2018 2019 2020 2021 (YTD) 9.66% 8.26% 6.81% 7.51% 6.58% 9.59% 2016 2017 2018 2019 2020 2021 (YTD) 10.81%
Slide 12: Q2 2021 Income Statement Highlights
12 • Net income was $9.8 million, ROAA was 1.75% and ROAE was 24.25%. • Net interest margin was 3.48% as a result of the following: • Q2 2021 average loan yield was 4.73%, and excluding PPP loans, was 4.76% (1) • Q2 2021 cost of deposits was 0.20% • $1.2 million of PPP fee income recognized on $63 m
Slide 13: Non-GAAP Reconciliation (Unaudited)
Non-GAAP Reconciliation (Unaudited) FIVE STAR BANCORP 3B
Slide 14: Company Overview
Company Overview * oC FIVE STAR BANCORE 1k
Slide 15: Company Overview
CA Redding 5 5 Chico 6 Yuba City 80 7 Roseville 1 Elk Grove 4 Sacramento Santa Rosa Rancho Cordova 3 2 • Branch (7) • Non - Depository Office (2) 505 Company Overview • Five Star Bank (the “Bank”) was chartered in California in 1999 • Five Star Bancorp was incorporated in California in 2002 and ther
Slide 16: Management Team
16 James Beckwith President and Chief Executive Officer Five Star since 2003 Heather Luck Senior Vice President and Chief Financial Officer Five Star since 2018 John W. Dalton Senior Vice President and Chief Credit Officer Five Star since 2011 Mike E. Lee Senior Vice President and Chief Regulatory O
Slide 17: Board of Directors
Name Title Current / Prior Experience David J. Lucchetti Chairperson of the Board • Has served as Chairman of the Board since 2019 • Currently serves as Executive Chairman of the Board of Directors of Pacific Coast Building Products and Director of the Greater Sacramento Economic Council David F. Ni
Slide 18: Customer and Community Centric Focus, Specialized Lending, Risk Management
Customer and Community Centric Focus Specialized Lending Products Risk Management • Deep connectivity to the geographic and industry markets we serve • Emphasis on centers of influence within geographic and industry markets • Focus on bringing solutions one customer at a time • Banking larger, more
Slide 19: Industry and Lending Verticals
19 Commercial Real Estate SBA Construction Faith - Based Lending Agriculture Manufacturing & Distribution Manufactured Home Communities Healthcare Venture Banking & Technology Professional Services Non - Profit Government
Slide 20: Technology Driving Client Relationships and Efficiency
Technology is a driver in maintaining and expanding client relationships, competing for new business, and improving profitability through efficiencies nCino Loan Origination System | scalable loan origination system and document repository facilitating a loan portfolio that offers fintech - sourced
Slide 21: Commitment to Environmental, Social & Governance
Commitment to Environmental, Social & Governance Dedication to Diversity, Equity & Inclusion We are executing, and plan to scale - up, an ESG strategy that focuses on environmental impacts of our business, social factors and the governance of our Board of Directors to drive positive change Environme
Slide 22: Our Mission and Core Values
Our Mission We strive to become the top business bank in all markets we serve through exceptional service, deep connectivity and customer empathy. We are dedicated to serving real estate, agricultural, faith based, and small to medium - sized enterprises. We aim to consistently deliver value that me
Slide 23: Investment Highlights
• Experienced board of directors and management team • Attractive markets driving future growth potential • Proven organic growth capabilities • Attractive core deposit franchise • Scalable and efficient operating model • Differentiated approach to banking • Committed to serving and developing the l
Slide 24: Thank you.
Thank you. * oC FIVE STAR BANCORE 1k