Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 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: Stellar Bancorp, Inc. - A Premier Texas Franchise
Stellar Bancorp, Inc. - A Premier Texas Franchise 3 Combination delivers scale, growth opportunities and talent depth Significant scarcity value in one of the best markets in the U.S Merger-of-equals between of CBTX, Inc. and Allegiance Bancshares, Inc. became effective October 1, 2022, with t
Slide 4: Unparalleled Market Focus
Unparalleled Market Focus 4 Houston Region Deposit Market Share(1) Deposits ($B) $34.3 $29.7 $14.1 $11.9 $9.5 $8.4 $8.0 $7.6 $6.8 $5.9 $5.9 $3.9 $3.6 $2.9 $2.9 JPMorgan Wells Fargo BofA Zions PNC Stellar Frost Capital One Cadence Prosperity Allegiance Woodforest Comerica CBTX Texas Capital Truist $1
Slide 5: Headquartered in 4th Largest City in the US
Headquartered in 4th Largest City in the US 5-Year Historical Population Growth (2017-2022) STRONG AND DIVERSIFIED HOUSTON REGION Houston has the second highest concentration of Fortune 1000 companies in the U.S. The Port of Houston ranked #1 in the U.S. in 2021 foreign waterborne tonnage Houston is
Slide 6: Strong Combined Market Share Growth In Competitive Texas Markets
440 bps 400 bps 386 bps 245 bps 128 bps 8 bps (31 bps) (33 bps) (49 bps) (76 bps) (135 bps) (137 bps) (193 bps) (343 bps) (354 bps) (500 bps) (400 bps) (300 bps) (200 bps) (100 bps) - 100 bps 200 bps 300 bps 400 bps 500 bps JPMorgan Cullen/Frost Bankers Bank of America Independent Bank Group Veritex
Slide 7: Financial Highlights – Third Quarter 2022
Financial Highlights – Third Quarter 2022 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. (2) Adjusted results exclude the impact of acquisition and merger-related expenses for the per
Slide 8: Historical Standalone Profitability
$39.6 $49.5 $72.3 $83.3 $97.6 $26.0 $19.7 $30.2 $2.94 $3.14 $3.38 $4.06 $4.79 $1.27 $0.98 $1.50 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $0 $15 $30 $45 $60 $75 $90 $105 2017 2018 2019 2020 2021 Q3-21 Q3-22 PTPP Earnings per Share PT PP In co m e ($ M ) $43.7 $56.9 $64.5 $51.3 $34.7 $12.4 $17.1 $23.
Slide 9: Historical Standalone Profitability (Continued)
2.63% 2.60% 2.67% 2.45% 2.61% 2.32% 2.67% 2017 2018 2019 2020 2021 Q3-21 Q3-22 2.59% 2.58% 2.50% 2.26% 2.13% 2.05% 2.60% 2017 2018 2019 2020 2021 Q3-21 Q3-22 63.9% 63.7% 63.0% 60.6% 58.9% 56.9% 69.2% 2017 2018 2019 2020 2021 Q3-21 Q3-22 64.2% 59.0% 58.3% 64.2% 75.6% 66.2% 63.1% 2017 2018 2019 2020 2
Slide 10: Historical Standalone Profitability (Continued)
1.47% 1.80% 1.91% 1.36% 0.84% 1.19% 1.56% 2.10% 2017 2018 2019 2020 2021 Q3-21 Q3-22 0.93% 1.50% 1.50% 0.70% 0.86% 1.37% 1.16% 2017 2018 2019 2020 2021 Q3-21 Q3-22 0.65% 1.11% 1.10% 0.81% 1.24% 1.14% 0.84% 2017 2018 2019 2020 2021 Q3-21 Q3-22 Historical Standalone Profitability (Continued) 10 (1) Re
Slide 11: Yield and Cost Analysis
5.09% 5.32% 5.32% 5.02% 5.02% 5.17% 5.07% 5.00% 4.95% 4.87% 4.93% 5.15% 4.02% 3.90% 3.57% 3.30% 3.53% 3.85% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 4.36% 4.52% 4.39% 4.39% 4.40% 5.04% 4.43% 4.37% 4.26% 4.29% 4.38% 5.02% 3.29% 3.22% 3.07% 3.22% 3.49% 4.25% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 0.32% 0.28%
Slide 12: Strong Asset Quality
0.59% 0.89% 0.72% 0.64% 0.57% 0.47% 2017 2018 2019 2020 2021 Q3-22 0.33% 0.14% 0.04% 0.82% 0.79% 0.72% 2017 2018 2019 2020 2021 Q3-22 0.36% 0.06% 0.07% 0.18% 0.05% (0.02%) 2017 2018 2019 2020 2021 Q3-22 0.00% (0.03%) 0.03% 0.13% (0.02%) 0.00% 2017 2018 2019 2020 2021 Q3-22 Strong Asset Quality 12 Ne
Slide 13: Strong Asset Quality (Continued)
324.1% 678.9% 2,587.5% 169.2% 138.9% 145.4% 2017 2018 2019 2020 2021 Q3-22 1.04% 0.71% 0.75% 1.18% 1.14% 1.14% 2017 2018 2019 2020 2021 Q3-22 1.07% 0.97% 0.96% 1.39% 1.09% 1.04% 2017 2018 2019 2020 2021 Q3-22 177.4% 79.9% 103.8% 184.0% 198.7% 242.0% 2017 2018 2019 2020 2021 Q3-22 Strong Asset Qualit
Slide 14: Loan Portfolio Composition
Loan Portfolio Composition 14 (1) For illustrative purposes only, based on balances as of September 30, 2022. Excludes the impact of acquisition related adjustments and purchase accounting. (2) Commercial RE includes multifamily commercial real estate and other real estate. Allegiance Bancshares, In
Slide 15: Deposit Mix
Deposit Mix 15 Allegiance Bancshares, Inc. CBTX, Inc. Stellar Bancorp, Inc. – Combined(1) NIB 43.6% IB Dem. 16.9% Sav. & MMDA 26.0% CDs 13.5% NIB 47.8% IB Dem. 11.2% Sav. & MMDA 34.2% CDs 6.8% NIB 45.2% IB Dem. 14.6% Sav. & MMDA 29.3% CDs 10.9% ($M) (%) Noninterest-Bearing 2,466$ 43.6 Interest-Beari
Slide 16: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation 16 Allegiance Bancshares, Inc. CBTX, Inc. Three Months Ended Three Months Ended 9/30/2022 6/30/2022 9/30/2022 6/30/2022 Net income 14,286$ 16,437$ 12,747$ 11,707$ (+) Provision for credit losses 1,962 2,143 1,012 126 (+) Provision for income taxes 3,406 3,702 3,381
Slide 17: Appendix: Non-GAAP Reconciliation (Continued)
Appendix: Non-GAAP Reconciliation (Continued) 17 Allegiance Bancshares, Inc. Years Ended Three Months Ended 2017 2018 2019 2020 2021 9/30/2021 9/30/2022 Net income 17,632$ 37,309$ 52,959$ 45,534$ 81,553$ 19,060$ 14,286$ (+) Provision for credit losses 13,188 4,248 5,939 27,374 (2,322) 2,295 1,962 (+
Slide 18: Be Stellar.
ol, Be Stellar. NASDAQ: STEL stellar BANCORP, INC. 18