Slide 1: CBTX, Inc. Second Quarter 2022 Investor Presentation
CBTX, Inc. Second Quarter 2022 \ 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 decreased $64.6 million, or 1.7%, from 3/31/2022 to 6/30/2022 and the cost of total deposits was 0.13% for Q2 2022 • Noninterest - bearing demand deposits were 48.2% of total deposits as of 6/30
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) 2019 – 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 86.2% of gross loans as of 6/30/2022 and 86.4% as of 3/31/2022 • Multi - family community development loans are Texas - based projects promoting affordable housing and totaled $383.8 million ($249.7 million permanent and $134
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. Construction Loans • As of 6/30/2022 and 3/31/2022, construction loans were 112.0% and 96.3% of capital (1) , respectively, and unfunded commitments were $332.9 millio
Slide 12: Paycheck Protection Program
• PPP program closed to further borrowings and no PPP loans originated since Q2 2021 • As of 6/30/2022, the PPP portfolio included 33 loans with an aggregate outstanding principal balance of $1.1 million which qualified for the simplified forgiveness application • Interest earned on PPP loans for Q2
Slide 13: Allowance for Credit Losses
• Allowance for credit losses, or ACL, increased $645,000 from 3/31/2022 to 6/30/2022 due to an increase in the loan portfolio as a result of originations outpacing repayments • Decrease in ACL for loans from 6/30/2021 to 6/30/2022 resulted from improvements in the national and local economies and f
Slide 14: NPA and Net Charge-Offs
14 NPA AND NET CHARGE - OFFS (1) USA and Texas figures are from SNL Financial aggregates and Q12022 is the latest period available for these comparative figur es. Nonperforming Assets • Nonperforming assets remained low relative to total assets at $28.3 million as of 6/30/2022, compared to $22.1 mil
Slide 15: Revenue and Efficiency
15 REVENUE AND EFFICIENCY (1) 2019 – 2021 figures as of year end 12/31. Q2 2022 figures annualized as of 6/30/2022. (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 16: CommunityBank of Texas vision and positioning
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 The Company’s 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
Slide 19: Non-GAAP Reconciliations (Continued)
19 NON - GAAP RECONCILIATIONS (Continued) Tangible BV Per Share/Tangible Equity to Tangible Assets Total Shareholders' Equity $ 526,679 $ 539,723 $ 562,125 $ 564,593 $ 556,227 Goodwill (80,950) (80,950) (80,950) (80,950) (80,950) Other Intangibles (3,353) (3,540) (3,658) (3,702) (3,846) Tangible Equ