Slide 1: CBTX, Inc. Fourth Quarter 2021 Investor Presentation
CBTX, Inc. Fourth 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
Slide 3: Safe Harbor Statement and Non-GAAP Financial Measures (continued)
3 SAFE HARBOR STATEMENT AND NON - GAAP FINANCIAL MEASURES The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in the Company’s Annual Report on Form 10 - K, filed with the Securities and Exchange Commission, or SEC, an
Slide 4: Company Snapshot
4 COMPANY SNAPSHOT • Founded in 2007 and completed IPO in November 2017 • On 11/5/2021, entered into a definitive merger agreement with Allegiance Bancshares, Inc. • Resolved outstanding regulatory matters associated with BSA/AML program in December 2021 • Primarily a business bank with 34 banking c
Slide 5: Announced Merger with ABTX, Inc.
5 ANNOUNCED MERGER WITH ABTX, INC. • Creates a premier Texas financial institution by combining two of the largest Houston - focused banks • Generates significant shareholder value through materially enhanced metrics • True merger - of - equals – combined management team and equal board contribution
Slide 6: Financial Highlights
6 FINANCIAL HIGHLIGHTS (1) Loans originated under the Paycheck Protection Program, or PPP, net of related fees are included in Loans, Net above. See pag e 1 2. (2) See Appendix for reconciliation of non - GAAP financial measures. (3) Pre - provision net revenue is net income, with the provision for
Slide 7: Financial Highlights (Continued)
7 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. (4) Allowance for credit losses, or ACL .. (5) Hel
Slide 8: Deposits
8 DEPOSITS • Proven ability to generate low - cost core deposits (1) to fund loan growth • Total deposits increased $299.6 million, or 8.5%, from 9/30/2021 to 12/31/2021 and the cost of total deposits was 0.13% for Q4 2021 • Total deposits increased $529.5 million, or 16.0%, from 12/31/2020 to 12/31
Slide 9: Loan Portfolio
9 LOAN PORTFOLIO (1) Commercial loans defined as total loans less 1 - 4 family residential, consumer, agriculture and other loans. See page 10. (2) 2018 – 2021 figures as of year end 12/31. (3) See page 11 for information about how the Company classifies its direct and indirect oil and gas loans. •
Slide 10: Commercial Loans
10 COMMERCIAL LOANS • Well - diversified commercial loan portfolio totaled 86.0% of gross loans as of 12/31/2021 and 88.0% as of 9/30/2021 • Multi - family community development loans are Texas - based projects promoting affordable housing and total $358.3 million ($238.9 million permanent and $119.
Slide 11: Construction / Oil and Gas Loans
11 CONSTRUCTION / OIL AND GAS LOANS (1) Total capital of CommunityBank of Texas, N.A., the wholly - owned subsidiary of the Company. (2) Total relationship commitment, which includes the outstanding balance and unfunded commitments. Construction Loans • As of 12/31/2021 and 9/30/2021, construction l
Slide 12: Paycheck Protection Program
• PPP program closed to further borrowings and no PPP loans originated since Q2 2021 • As of 12/31/2021, the PPP portfolio included 224 loans whose principal balances total $10.0 million which qualified for the simplified forgiveness application • Interest earned on PPP loans for Q4 2021 and Q3 2021
Slide 13: Allowance for Credit Losses
• Allowance for credit losses, or ACL, decreased $863,000 from 9/30/2021 to 12/31/2021 due to an adjustment to qualitative factors associated with the local economy as these factors continued to improve • Decrease in ACL for loans during 2021 resulted from continued improvements in the national and
Slide 14: NPA and Net Charge-Offs
14 NPA AND NET CHARGE - OFFS (1) USA and Texas figures are from SNL Financial aggregates and Q3 2021 is the latest period available for these comparative figu res .. Nonperforming Assets • Nonperforming assets, or NPA, remained low relative to total assets at $22.6 million, or 0.50% of total assets,
Slide 15: Revenue and Efficiency
15 REVENUE AND EFFICIENCY (1) 2018 – 2021 figures as of year end 12/31. (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 equivalent basis was 3.07% for Q4 2021, 3.22% f
Slide 16: CommunityBank of Texas: Here to Serve
16 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 17: Appendix
APPENDIX
Slide 18: Non-GAAP Reconciliations
18 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
Slide 19: Non-GAAP Reconciliations (Continued)
19 NON - GAAP RECONCILIATIONS (Continued) Tangible BV Per Share/Tangible Equity to Tangible Assets Total Shareholders' Equity $ 562,125 $ 564,593 $ 556,227 $ 545,349 $ 546,451 Goodwill (80,950) (80,950) (80,950) (80,950) (80,950) Other Intangibles (3,658) (3,702) (3,846) (3,991) (4,171) Tangible Equ