Stellar Bancorp, Inc. · NYSE:STEL
Stellar Bancorp — CBTX — Q2 2021 Earnings Presentation
17 slides from Stellar Bancorp's earnings presentation, Jul 28, 2021
Slide 1: CBTX, Inc. Second Quarter 2021 Investor Presentation
CBTX, Inc. Second Quarter 2021 Investor Presentation NASDAQ: CBTX
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
2 SAFE HARBOR STATEMENT AND NON-GAAP FINANCIAL MEASURES NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP (generally accepted accounting principles) financial measures, including tangible equity, tangible assets, tangible book value per share, tangible equity to tangible assets
Slide 3: Company Snapshot
3 COMPANY SNAPSHOT • Founded in 2007 and completed IPO in November 2017 • Primarily a business bank with 35 banking centers located across Houston, East Texas and Dallas • Experienced management team with deep ties in the markets served • Strong credit culture • Low-cost core funding - total deposit
Slide 4: Financial Highlights
4 FINANCIAL HIGHLIGHTS (1) PPP Loans, Net are included in Loans, Net above. See page 10 for further details. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Pre-provision net revenue is net income, with the provision for credit losses and income tax expense added back. Financ
Slide 5: Financial Highlights (Continued)
5 FINANCIAL HIGHLIGHTS (Continued) (1) Annualized. (2) See Appendix for reconciliation of non-GAAP financial measures. (3) Efficiency ratio is calculated by dividing noninterest expense by the sum of the net interest income and noninterest income. Financial Highlights Q2 2021 Q1 2021 Q4 2020 Q3 2020
Slide 6: Deposits
6 DEPOSITS • Proven ability to generate low-cost core deposits(1) to fund loan growth • Total deposits increased $32.0 million, or 0.9%, from 3/31/2021 to 6/30/2021 and the cost of total deposits was 0.15% for Q2 2021 • Noninterest-bearing demand deposits were 45.6% of total deposits as of 6/30/2021
Slide 7: Loan Portfolio
7 LOAN PORTFOLIO (1) Commercial loans defined as total loans less 1-4 family residential, consumer, agriculture and other loans. See detail on page 8. (2) 2018 – 2020 figures as of year end 12/31. Q2 2021 figures as of 6/30/2021. (3) See page 9 for information about how the Company classifies its di
Slide 8: Commercial Loans
8 COMMERCIAL LOANS • Operating lines of credit, fixed asset financing and real estate loans to industrial companies involved in the construction, modification, support and maintenance of petrochemical plants • Operating lines of credit, fixed asset financing and real estate loans to law firms, medic
Slide 9: Construction / Oil and Gas Loans
9 CONSTRUCTION / OIL AND GAS LOANS • As of 6/30/2021, $426.0 million, or 17.7%, of the Company’s gross loans were construction and development, or construction loans • As of 6/30/2021, construction loans were 89.9% of capital(1) and commitments to fund additional construction loans were $642.6 milli
Slide 10: Paycheck Protection Program
• Originated 163 new PPP loans with principal balances totaling $20.4 million during Q2 2021 as part of the third round of PPP financing • As of 6/30/2021, the PPP portfolio included 1,124 loans with total principal balances of $48.5 million that qualified for the simplified forgiveness application
Slide 11: Allowance for Credit Losses
• ACL decreased $3.7 million from 3/31/2021 to 6/30/2021 due to continued improvements in national economy and forecasts, improved credit quality and the reduction of loan balances • Increase in ACL for loans during 2020 was driven by the impact of the COVID-19 pandemic, the sustained instability of
Slide 12: NPA and Net Charge-Offs
12 NPA AND NET CHARGE-OFFS (1) USA and Texas figures are from SNL Financial aggregates and Q1 2021 is the latest period available for these comparative figures. Nonperforming Assets • Nonperforming assets, or NPA, remained low relative to total assets at $21.0 million, or 0.52% of total assets, as o
Slide 13: Revenue and Efficiency
13 REVENUE AND EFFICIENCY (1) 2018 – 2020 figures as of year end 12/31. Q2 2021 figures annualized as of 6/30/2021. (2) Efficiency ratio is calculated by dividing noninterest expense by the sum of the net interest and noninterest income. Revenue Efficiency • Net interest margin, or NIM, on a tax equ
Slide 14: CommunityBank of Texas: Here to Serve
14 At CommunityBank of Texas, we’re committed to building strong, honest relationships. We strive to keep our clients’ and partners’ needs at the forefront of everything we do. And we measure our success by the success we help create for them. OUR VISION Here to Serve. OUR POSITIONING To experienced
Slide 15: Appendix
APPENDIX
Slide 16: Non-GAAP Reconciliations
16 NON-GAAP RECONCILIATIONS Our management uses certain non-GAAP financial measures to evaluate performance. We have included in this presentation information related to these non-GAAP financial measures for the applicable periods presented. The following tables reconcile, as of the dates set forth
Slide 17: Non-GAAP Reconciliations (Continued)
17 NON-GAAP RECONCILIATIONS (Continued) (000) 6/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2020 (000) Q2 2021 Q2 2020 Q3 2020 Q1 2021 Q4 2020 Total Shareholders' Equity $ 556,227 $ 545,349 $ 546,451 $ 540,921 $ 537,356 Goodwill (80,950) (80,950) (80,950) (80,950) (80,950) Other Intangibles (3,846)