Slide 1: Third Quarter 2024 Earnings Presentation
Third 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: Third Quarter 2024 Highlights
5 Third Quarter 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: Third quarter 2024 net income of $33.9 million, or diluted earnings per share of $0
Slide 6: Deposit Summary
Deposit Summary 6 Deposit Portfolio Composition Deposits (in millions) Maintaining Discipline Navigating Competitive Deposit Market As of September 30, 2024: • Noninterest-bearing deposits to total deposits: 37.8% • Cost of deposits: 2.15% • Cost of funds: 2.24% • Loan to deposit ratio: 86.37% • Bro
Slide 7: Loan Summary
Loan Summary 7 (1) Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures in the appendix. . Loan Portfolio Composition (1) (1) Q3 2024 Q2 2024 Commercial and Industrial (“C&I”) 1,350,753$ 1,396,064$ 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: • 0.43% at September 30, 2024 compared to 0.66% as of June 30, 2024 Allowance for credit losses on loans to nonperforming lo
Slide 9: CRE and Office Detail: Q3 2024
CRE and Office Detail: Q3 2024 9 (1) (1) CRE (incl. multifamily) by Property Type CRE - Office Retail 673,140$ 1,320$ 16.9% Warehouse 557,764 762 14.1% Convenience Store (C-Store) 441,031 1,345 11.1% Multi-family 427,736 1,910 10.8% Office 421,990 826 10.6% Industrial 171,845 1,606 4.3% Hotel / Mote
Slide 10: CRE Construction and Development: Q3 2024
CRE Construction and Development: Q3 2024 10 (1) (1) • Total committed exposure for CRE construction loans was $1.23 billion at September 30, 2024 and June 30, 2024. • The largest category of CRE construction loans was Land – Commercial at $354.6 million outstanding, or 39.8%, of CRE construction lo
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: Liquidity Profile
12 Liquidity Profile Stellar is well-positioned to manage through the current environment. Sources of Liquidity at September 30, 2024 Sources of Liquidity Estimated Uninsured Deposits at September 30, 2024 (1) Brokered deposit capacity is governed by internal policy limits. (Dollars in millions) Tot
Slide 13: Key Takeaways
13 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 14: Diverse and Strong Markets of Operation
$30.1 $25.3 $13.2 $9.0 $8.6 $7.8 $5.7 $5.7 $5.7 JPMorgan Wells Fargo BofA Zions PNC Frost Prosperity Cadence Woodforest Diverse and Strong Markets of Operation 14 Houston is Diverse, with Significant Economic Tailwinds Greater Houston Market Top 10 Bank by Deposits in Houston Region(1) ($B) Note: De
Slide 15: Diversified and Growing Economy
Diversified and Growing Economy 15 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 16: 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 16 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 17: Houston's Growth Projected to Continue
92,198 (150,000) (100,000) (50,000) 0 50,000 100,000 150,000 D a lla s H o u s to n T a m p a A tl a n ta P h o e n ix M ia m i D e n v e r W a s h in g to n B o s to n M in n e a p o lis R iv e rs id e S e a tt le B a lt im o re P h ila d e lp h ia D e tr o it S a n D ie g o S a n F ra n c is c o C
Slide 18: 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 19: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation(1) 19 (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 $ 1,626,123 $ 1,565,795 Less: Goodw ill and co
Slide 20: Be Stellar.
ol, Be Stellar. NYSE: STEW stellar BANCORP, INC.