CBTX, Inc. Investor Presentation Q3 2021

NASDAQ: CBTX

CBTX, Inc.

Third Quarter 2021 Investor Presentation

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, return on average tangible equity, and pre-provision net revenue. The non-GAAP financial measures that CBTX, Inc. (the "Company") discusses in this presentation should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. A reconciliation of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP measures is provided at the end of this presentation.

FORWARD-LOOKING STATEMENTS

This presentation may contain certain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about the Company and its subsidiary. Forward-looking statements include information regarding the Company's future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Statements preceded by, followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans" and similar expressions or future or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: natural disasters and adverse weather on the Company's market area, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities and other matters beyond the Company's control; the Company's ability to manage the economic risks related to the impact of the COVID-19 pandemic (including risks related to its customers' credit quality, deferrals and modifications to loans); the geographic concentration of the Company's markets in Houston and Beaumont, Texas; the Company's ability to manage changes and the continued health or availability of management personnel; the amount of nonperforming and classified assets that the Company holds and the time and effort necessary to resolve nonperforming assets; deterioration of asset quality; interest rate risk associated with the Company's business; national business and economic conditions in general, in the financial services industry and within the Company's primary markets; sustained instability of the oil and gas industry in general and within Texas; the composition of the Company's loan portfolio, including the identity of the Company's borrowers and the concentration of loans in specialized industries; changes in the value of collateral securing the Company's loans; the Company's ability to maintain important deposit customer relationships and its reputation; the Company's ability to maintain effective internal control over financial reporting; the Company's ability to pursue available remedies in the event of a loan default for loans under the Paycheck Protection Program, or PPP, and the risk of holding such loans at unfavorable interest rates and on terms that are less favorable than those with customers to whom the Company would have otherwise lent; volatility and direction of market interest rates; liquidity risks associated with the Company's business; systems failures, interruptions or breaches involving the Company's information technology and telecommunications systems or third-party servicers; the failure of certain third-party vendors to perform; the institution and outcome of litigation and other legal proceedings against the Company or to which it may become subject; the operational risks associated with the Company's business; the costs, effects and results of regulatory examinations, investigations, including the ongoing investigation by the Financial Crimes Enforcement Network of the U.S. Department of Treasury, or FinCEN, or reviews or the ability to obtain required regulatory approvals; the possible results and amounts of civil money penalties related to such FinCEN investigation and the Company's BSA/AML program; changes in the laws, rules, regulations, interpretations or policies relating to financial institution, accounting, tax, trade, monetary and fiscal matters; governmental or regulatory responses to the COVID-19 pandemic that may impact the Company's loan portfolio and forbearance practice; further government intervention in the U.S. financial system that may impact how the Company achieves its performance goals; and other risks, uncertainties, and factors that are discussed from time to time in the Company's reports and documents filed with the SEC. Additionally, many of these risks and uncertainties have been elevated by and may continue to be elevated by the COVID-19 pandemic.

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 and any subsequent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, or SEC, and other reports and statements that the Company has filed with the SEC. If one or more events related to these or other risks or uncertainties materialize, or if the Company's underlying assumptions prove to be incorrect, actual results may differ materially from what it anticipates. Accordingly, you should not place undue reliance on any such forward- looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company does not undertake any obligation to publicly update or review any forward- looking statement, whether as a result of new information, future developments or otherwise. New factors emerge from time to time, and it is not possible for the Company to predict which will arise. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Copies of the SEC filings for the Company are available for download free of charge from www.communitybankoftx.com under the Investor Relations tab.

All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company's behalf may issue. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

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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-costcore funding - total deposits of $3.5 billion as of 9/30/2021
• Strong insider ownership of 26% as of 9/30/2021
• Quarterly dividend of $0.13 per share, paid on 10/15/2021
• Strong capital levels with total risk- based capital ratio of 18.12%, tier 1 risk- based capital ratio of 16.87% and common equity tier 1 capital ratio of 16.87% as of 9/30/2021

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FINANCIAL HIGHLIGHTS

Financial Highlights

Q3 2021

Q2 2021

Q1 2021

Q4 2020

Q3 2020

Balance Sheet (000)
Total Assets	$	4,209,119	$
Loans, Net		2,576,194
PPP Loans		103,721
PPP Deferred Fees / Unearned Discount		(2,954)
PPP Loans, Net(1)		100,767
Unfunded Loan Commitments		772,469
Total Deposits		3,531,635
Book Value per Share		23.12
Tangible Book Value per Share(2)		19.65
Income Statement (000)
Net Interest Income	$	31,249	$
Provision (Recapture) for Credit Losses		(4,895)
Noninterest Income		5,562
Noninterest Expense		24,372
Net Income		14,421
Pre-Provision Net Revenue(2)(3)		12,439
Diluted Earnings per Share		0.59
Capital Ratios
Total Shareholders' Equity to Total Assets		13.41	%
Tangible Equity to Tangible Assets(2)		11.64
Common Equity Tier 1 Capital Ratio		16.87
Tier 1 Risk-Based Capital Ratio		16.87
Total Risk-Based Capital Ratio		18.12
Tier 1 Leverage Ratio		11.69

4,066,534 $

2,692,313

184,286

(5,207)

179,079

692,581

3,416,786

22.75

19.28

31,018 $

(5,038)

3,491

25,197

11,703

9,312

0.48

1. %

4,028,639 $

2,850,758

274,336

(5,560)

268,776

724,042

3,384,747

22.31

18.84

33,090 $

412

3,111

23,285

10,019

12,916

0.41

1. %

3,949,217 $ 3,814,672

2,883,4802,920,457

275,396330,512

(4,159)(6,251)

271,237324,261

739,731777,741

3,301,7943,170,664

22.2021.89

18.7418.44

32,520 $ 31,708

1. 4,108

3,522		4,023
23,658		23,858
10,236		6,421
12,384		11,873
0.41		0.26
13.84	%	14.18	%
11.94		12.22
15.45		15.41
15.45		15.41
16.71		16.67
12.00		11.90

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-provisionnet revenue is net income, with the provision for credit losses and income tax expense added back.

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FINANCIAL HIGHLIGHTS (Continued)

Financial Highlights

Q3 2021

Q2 2021

Q1 2021

Q4 2020

Q3 2020

Profitability
Return on Average Assets				1.37	%	1.14	%	1.03	%	1.05	%	0.66	%
					(1)			10.15		8.49		7.39		7.47		4.70
Return on Average Shareholders' Equity
				(1)(2)			11.95		10.03		8.75		8.85		5.57
Return on Average Tangible Equity
Net Interest Margin - Tax Equivalent	(1)			3.22		3.29		3.71		3.62		3.55
Cost of Total Deposits	(1)				0.14		0.15		0.17		0.19		0.23
Efficiency Ratio	(3)					66.21		73.02		64.32		65.64		66.77
Credit Quality
ACL	(4)			(5)			1.23	%	1.36	%	1.41	%	1.39	%	1.49	%
	/ Loans Excluding Loans HFS
ACL	(4)			(5)			1.29		1.46		1.56		1.53		1.67
	/ Loans Excluding Loans HFS and PPP Loans
Nonperforming Assets / Total Assets				0.49		0.52		0.59		0.61		0.41
Nonperforming Loans	/ Loans Excluding Loans HFS	(5)	0.79		0.77		0.81		0.82		0.53
Net Charge-offs (Recoveries) / Average Loans	(1)		(0.01)		(0.07)		0.01		0.49		0.02

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 for sale, or HFS.

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