Five Star Bancorp · NASDAQ:FSBC
Five Star Bancorp — Q4 2021 Earnings Presentation
31 slides from Five Star Bancorp's earnings presentation, Jan 31, 2022
Slide 1: Investor Presentation Fourth Quarter and Year End 2021
Investor Presentation Fourth Quarter and Year End 2021
Slide 2: Safe Harbor Statement and Disclaimer
Safe Harbor Statement and Disclaimer Forward - Looking Statements In this presentation, “we,” “our,” “us,” “Five Star" or “the Company” refers to Five Star Bancorp, a California corporation, and our consolidated subsidiaries, including Five Star Bank, a California state - chartered bank, unless the
Slide 3: Agenda
Agenda • Company Overview • Financial Highlights • Loans and Credit Quality • Deposit and Capital Overview • Financial Results Fourth Quarter 2021 Investor Presentation | 3
Slide 4: Company Overview
Company Overview Fourth Quarter 2021 Investor Presentation | 4
Slide 5: Company Overview
Company Overview Nasdaq: Headquarters: Asset Size: Loans (1) : Deposits: Bank Branches: Fourth Quarter 2021 Investor Presentation | 5 CA Redding 5 5 Chico 6 Yuba City 80 7 Roseville 1 Elk Grove 4 Sacramento Santa Rosa Rancho Cordova 3 2 Bank Branch (7) Non - Depository Office (2) 505 FSBC Rancho Cor
Slide 6: Executive Team
Executive Team Fourth Quarter 2021 Investor Presentation | 6 James Beckwith President and Chief Executive Officer Five Star since 2003 John Dalton Senior Vice President and Chief Credit Officer Five Star since 2011 Mike Lee Senior Vice President and Chief Regulatory Officer Five Star since 2005 Mich
Slide 7: Financial Highlights
Financial Highlights Fourth Quarter 2021 Investor Presentation | 7
Slide 8: Consistent and Organic Asset Growth
$440 $547 $565 $604 $811 $840 $973 $1,272 $1,480 $1,954 $2,151 $2,328 $2,434 $2,557 $1,806 $1,968 $2,207 $2,373 $2,535 $148 $183 $121 $61 $22 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Total Assets Excluding PPP Loans PPP Loans Consistent and Organic Asset Grow
Slide 9: Financial Highlights
Financial Highlights Fourth Quarter 2021 Investor Presentation | 9 Note: Period end loan balances are before allowance for loan losses, before deferred loan fees, and exclude loans held for sa le. (1) A reconciliation of this non - GAAP measure is set forth in the appendix. (2) Funds received in Q4
Slide 10: Financial Highlights
Financial Highlights Fourth Quarter 2021 Investor Presentation | 10 Growth • Continued balance sheet growth with $563.0 million in non - PPP loan growth (1) and $501.9 million in deposit growth since December 31, 2020. Funding • For the most recent quarter ended, non - interest - bearing deposits co
Slide 11: Loans and Credit Quality
Loans and Credit Quality Fourth Quarter 2021 Investor Presentation | 11
Slide 12: Consistent Loan Growth
$148 $22 4.86% 4.93% 5.28% 5.45% 4.96% 4.82% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 6.50% 7.00% $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 2016 2017 2018 2019 2020 2021 Total Loans (Millions) Non-PPP Loans PPP Loans Average Loan Yield Average Loan Yield Excl PPP Consistent Loan Gr
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition Fourth Quarter 2021 Investor Presentation | 13 Note: Balances are net book value at December 31, 2021 and exclude loans held for sale. (1) Types of collateral in “all other types” are those that individually make up less than 5% CRE concentration. Commercial 81.93% Commerc
Slide 14: CRE Collateral Values
CRE Collateral Values Fourth Quarter 2021 Investor Presentation | 14 Note: Balances are net book value at December 31, 2021 and exclude loans held for sale. Dollars are in thousands. (1) Types of collateral in the “all other types” category are those that individually make up less than 5% CRE concen
Slide 15: Loan Portfolio Diversification
Loan Portfolio Diversification 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, and farmland l
Slide 16: Loan Rollforward
Loan Rollforward Fourth Quarter 2021 Investor Presentation | 16 Note: Dollars are in millions. Beginning and ending balances are as of period end, before allowance for loan losses, before deferred loan fees, and exclude loans held for sale. Column1 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Beginning Balance 1
Slide 17: Asset Quality
Asset Quality Our primary objective is to maintain a high level of asset quality in our loan portfolio. In order to maintain our strong asset quality, we: - Place emphasis on our commercial portfolio, where we reevaluate risk assessments as a result of reviewing commercial property operating stateme
Slide 18: Allocation of Allowance for Loan Losses
Allocation of Allowance for Loan Losses Fourth Quarter 2021 Investor Presentation | 18 (dollars in thousands) Allowance for Loan Losses Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total Collectively evaluated for impairment Real estate: Commercial 9,358$ 42.17
Slide 19: Risk Grade Migration
Risk Grade Migration Fourth Quarter 2021 Investor Presentation | 19 (dollars in thousands) Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Real Estate: Commercial 35,543$ 35,531$ 35,519$ 35,488$ 9,255$ Commercial land and development - - - - - Commercial construction - - - - - Residential construction - - -
Slide 20: Deposit and Capital Overview
Deposit and Capital Overview Fourth Quarter 2021 Investor Presentation | 20
Slide 21: Diversified Funding
83.2% 90.5% 84.5% 78.0% 76.8% 78.9% 85.1% 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 29.0% 29.6% 39.3% 40.5% 40.4% 41.5% 39.5% 2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Diversified Funding Fourth Quarter 2021 Investor Presentation | 21 Total Deposits (1) = $2.3 Billion 98.5% of Total Liabil
Slide 22: Strong Deposit Growth
2018 2019 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Cost of Total Deposits 0.55% 0.81% 0.44% 0.15% 0.11% 0.09% 0.08% Time Deposits 100,069 96,510 47,602 36,338 54,674 53,935 104,272 Interest-Bearing Demand 123,835 118,644 146,553 155,866 136,336 155,881 278,406 Non-Interest-Bearing Demand 336,796 388,762
Slide 23: Capital Ratios
9.66% 8.26% 6.81% 7.51% 6.58% 9.47% 2016 2017 2018 2019 2020 2021 10.81% 9.32% 7.48% 8.21% 8.98% 11.44% 2016 2017 2018 2019 2020 2021 11.97% 13.23% 10.79% 11.52% 12.18% 13.98% 2016 2017 2018 2019 2020 2021 10.81% 9.32% 7.48% 8.21% 8.98% 11.44% 2016 2017 2018 2019 2020 2021 Capital Ratios Fourth Quar
Slide 24: Financial Results
Financial Results Fourth Quarter 2021 Investor Presentation | 24
Slide 25: Earnings Track Record
Earnings Track Record Fourth Quarter 2021 Investor Presentation | 25 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Net Income ($M) $7.0 $10.1 $9.3 $9.5 $10.3 $9.8 $11.0 $11.3 Basic EPS $0.72 $1.05 $0.94 $0.86 $0.93 $0.67 $0.64 $0.66 Diluted EPS $0.72 $1.05 $0.94 $0.86 $0.93 $0.67 $0.64 $0.66 $- $0
Slide 26: Operating Metrics
3.72% 3.99% 3.93% 3.98% 3.68% 3.64% 2016 2017 2018 2019 2020 2021 40.32% 37.94% 42.27% 38.63% 37.92% 42.46% 2016 2017 2018 2019 2020 2021 $16.4M $22.1M $23.4M $30.4M $37.3M $47.1M 2016 2017 2018 2019 2020 2021 Operating Metrics Fourth Quarter 2021 Investor Presentation | 26 Total Income Before Taxes
Slide 27: Non-interest Income and Expense Trends
Non - interest Income and Expense Trends Fourth Quarter 2021 Investor Presentation | 27 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2020 FY 2021 Service charges on deposit accounts 98$ 90$ 106$ 112$ 116$ 367$ 424$ Net gain on sale of securities 197 182 92 435 15 1,438 724 Gain on sale of loans 1,510
Slide 28: Shareholder Returns
Shareholder Returns Fourth Quarter 2021 Investor Presentation | 28 24.57% 27.80% 29.28% 31.40% 31.16% 22.49% 2016 2017 2018 2019 2020 2021 $2.60 $2.92 $3.08 $3.40 $3.57 $2.83 2016 2017 2018 2019 2020 2021 ROAA ROAE EPS (basic and diluted) Value per Share (book and tangible book (1) ) $10.48 $10.93 $
Slide 29: Mission statement
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 meets or ex
Slide 30: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non - GAAP Reconciliation (Unaudited) The Company uses financial information in its analysis of the Company's performance that are not in conformity with GAAP . The Company believes that these non - GAAP financial measures provides useful information to management and investors that is sup
Slide 31: Appendix: Non-GAAP Reconciliation (Unaudited)
Appendix: Non - GAAP Reconciliation (Unaudited) Fourth Quarter 2021 Investor Presentation | 31 (dollars in millions) Total assets, excluding PPP loans 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/31/2021 Total assets 1,954$ 2,151$ 2,328$ 2,434$ 2,557$ Less: PPP loans 148 183 121 61 22 Total assets, e