Slide 1: CBTX, Inc. Third Quarter 2021 Investor Presentation
CBTX, Inc. Third 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) Loans originated under the Paycheck Protection Program, or PPP, net of related fees 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
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. (4) Allowance for credit losses, or ACL. (5) Held fo
Slide 6: Deposits
6 DEPOSITS • Proven ability to generate low-cost core deposits(1) to fund loan growth • Total deposits increased $114.8 million, or 3.4%, from 6/30/2021 to 9/30/2021 and the cost of total deposits was 0.14% for Q3 2021 • Noninterest-bearing demand deposits were 46.0% of total deposits as of 9/30/202
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. Q3 2021 figures as of 9/30/2021. (3) See page 9 for information about how the Company classifies its di
Slide 8: Commercial Loans
8 COMMERCIAL LOANS • Well-diversified commercial loan portfolio totaled 88.0% of gross loans as of 9/30/2021 and 87.9% as of 6/30/2021 • Multi-family community development loans are Texas-based projects promoting affordable housing and total $334.8 million ($242.7 million permanent and $92.1 million
Slide 9: Construction / Oil and Gas Loans
9 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 9/30/2021 and 6/30/2021, construction loans
Slide 10: Paycheck Protection Program
• No new PPP loans originated in Q3 2021, as compared to 163 PPP loans with principal balances totaling $20.4 million originated during Q2 2021 • As of 9/30/2021, the PPP portfolio included 470 loans with total principal balances of $21.4 million that qualified for the simplified forgiveness applica
Slide 11: Allowance for Credit Losses
• ACL decreased $5.0 million from 6/30/2021 to 9/30/2021 due to continued improvements in national and local economies and related forecasts 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 the
Slide 12: NPA and Net Charge-Offs
12 NPA AND NET CHARGE-OFFS (1) USA and Texas figures are from SNL Financial aggregates and Q2 2021 is the latest period available for these comparative figures. Nonperforming Assets • Nonperforming assets, or NPA, remained low relative to total assets at $20.6 million, or 0.49% of total assets, as o
Slide 13: Revenue and Efficiency
13 REVENUE AND EFFICIENCY (1) 2018 – 2020 figures as of year end 12/31. Q3 2021 figures annualized as of 9/30/2021. (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) Tangible BV Per Share/Tangible Equity to Tangible Assets Total Shareholders' Equity $ 564,593 $ 556,227 $ 545,349 $ 546,451 $ 540,921 Goodwill (80,950) (80,950) (80,950) (80,950) (80,950) Other Intangibles (3,702) (3,846) (3,991) (4,171) (4,303) Tangible Equit