Allegiance Bancshares — FY2021 Earnings Presentation
18 slides from Allegiance Bancshares's earnings presentation, Jan 28, 2022
Slide 1: Year-End 2021 Earnings Presentation
Fixed Income Investor Presentation September 2019[Month] [Day], 2019Year-End 2021 Earnings Presentation cshares, Inc. Exhibit 99.2
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
2 Certain statements in this presentation 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 1933, as amended, and Section 21E of the Securities Exchange Ac
Slide 3: Allegiance Bancshares, Inc. Overview
3 Allegiance Bancshares, Inc. Overview Franchise Footprint Holding Company for Allegiance Bank; Headquartered in Houston, Texas Company Overview Providing full-service banking services for small- to medium-sized businesses Operational History 27 full-service banking locations (at December 31, 2021
Slide 4: Financial Highlights – 2021
4 Financial Highlights – 2021 Assets of $7.10 billion, loans of $4.22 billion, deposits of $6.05 billion and shareholder's equity of $816.5 million at December 31, 2021 • Deposit growth of $1.06 billion, or 21.2%, from the year 2020 • Asset growth of $1.05 billion, or 17.4%, from the year 2020 • F
Slide 5: Announced Merger of Equals with CBTX, Inc.
5 Announced Merger of Equals with CBTX, 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 C
Slide 6: Pending MOE Poised to Create Largest Deposit Market Share of any Texas-Based Bank
6 $2.2 $3.3 $3.5 $3.6 $5.5 $6.3 $6.3 $6.5 $6.8 $8.0 $8.7 $13.8 $16.1 Truist CHARLIE Texas Capital Comerica ALPHA Woodforest BancorpSouth Prosperity Capital One Frost PRO FORMA Zions PNC BofA Wells Fargo JPMorgan RANKED #6 PRO FORMA IN HOUSTON REGION (1) MARKET SHARE HOUSTON REGION Houston-The Woodla
Slide 7: Houston Region Deposit Market Share
7 Number of Branches Total Deposits In Market ($000) Total Market Share (%) % of Company Deposits Total Deposits In Market ($000) Total Market Share (%) Size Profile Houston-The Woodlands-Sugar Land, TX JPMorgan Chase & Co. (NY) 1 1 176 155,894,884$ 47.11 7.75 144,957,958$ 48.45 >$1T Wells Fargo & C
Slide 8: Historical Balance Sheet Growth
8 Historical Balance Sheet Growth Total LoansTotal Assets Total EquityTotal Deposits _____________________ Note: Dollars in millions. (1) Includes $1.50 billion in assets acquired on October 1, 2018. (2) Includes $1.16 billion of acquired loans at fair value on October 1, 2018. (3) Includes $1.29 bi
Slide 9: Earnings Performance
9 $9.0 $15.8 $22.9 $17.6 $37.3 $53.0 $45.5 $81.6 $1.26 $1.43 $1.75 $1.31 $2.37 $2.47 $2.22 $4.01 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 2014 2015 2016 2017 2018 2019 2020 2021 Ea rn in gs p er S ha re ($ ) Ne t I nc om e
Slide 10: Footnotes on Adjustments
10 (1) Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment pe
Slide 11: Yields and Cost Analysis
11 5.09% 5.15% 5.09% 5.32% 5.32% 5.11% 5.06% 5.07% 5.00% 4.95% 0.49% 0.41% 0.32% 0.28% 0.25% 0.00% 0.50% 1.00% 1.50% 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 4.00% 4.50% 5.00% 5.50% 6.00% Co st of D ep os its Yi eld o n Lo an s Yield on Loans Yield on Loans (excl. PPP) Cost of Deposits 4.14% 4.19% 4.02% 3
Slide 12: Capital Position – Allegiance Bancshares, Inc.
12 Common Equity Tier 1 RatioTangible Equity / Tangible Assets(1) Total Risk-Based RatioTier 1 Risk-Based Ratio Capital Position – Allegiance Bancshares, Inc. _____________________ (1) Please refer to the non-GAAP reconciliation in the appendix. 9.82% 9.38% 10.29% 9.78% 8.90% 8.42% 2016 2017 2018 20
Slide 13: Deposit Composition and Growth
13 Deposit Composition and Growth Deposit Growth TrendDeposit Composition _____________________ Note: Dollars in millions. As of the quarter ended December 31, 2021. Certificates and Other Time 21.3% Noninterest-bearing 37.1% Interest- bearing Demand 14.4% Money Market and Savings 27.2% Deposit Cate
Slide 14: Loan Portfolio Composition
14 C&I 16.4% Paycheck Protection Program (PPP) 3.5% CRE (incl. multifamily) 49.9% CRE C&D 10.4% Residential Construction 2.8% 1-4 family residential 16.2% Consumer & Other 0.8% Total Loan Portfolio Composition 54.6% of CRE is Owner-Occupied CRE (incl. multi-family) by Property Type CRE Construction
Slide 15: PPP Loan Success – Over $1.08 Billion Funded
15 Total PPP Loan Composition _____________________ (1) Includes classifications less than 2.0% of total composition. PPP Loan Success – Over $1.08 Billion Funded Tremendous support to our customers and non-customers SBA Preferred Lender, Ranked #3 in PPP lending in Houston Region Supported ov
Slide 16: Loan Deferral Composition as of December 31, 2021
16 Loan Deferral Composition as of December 31, 2021 _____________________ Note: Dollars in thousands. Loan Category Outstanding Loan Balance Loan Balance Percent Loan Balance Percent Loan Balance Percent Commercial and industrial 693,559$ 1,040$ 5.7% 69,754$ 9.8% 70,794$ 9.7% Paycheck Protection Pr
Slide 17: Strong Asset Quality
17 Allowance / Total LoansAllowance / Nonperforming Loans Net Charge-offs / Average LoansNonperforming Loans / Total Loans Strong Asset Quality 300.0% 121.0% 258.8% 259.0% 252.7% 107.3% 177.4% 79.9% 103.8% 184.0% 198.7% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1.20% 1.13% 0.80% 0.82% 0
Slide 18: Non-GAAP Financial Measures
18 Our management uses certain non-GAAP financial measures in its analysis of our performance: “Tangible Shareholders’ Equity” is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. Tangible shareholders’ equity is defined as total sha