stel-20221028

Exhibit 99.1

PRESS RELEASE

STELLAR BANCORP, INC. REPORTS

THIRD QUARTER 2022 RESULTS

HOUSTON, October 28, 2022 - (NASDAQ: STEL) The merger of equals between CBTX, Inc. (CBTX) and Allegiance Bancshares, Inc. (Allegiance) became effective as of October 1, 2022, with the combined company renamed Stellar Bancorp, Inc. This press release includes the pre-merger financial results of stand-alone CBTX and stand-alone Allegiance for the periods presented. As such, these financial results do not include the impact of purchase accounting adjustments related to the merger.

Stellar Bancorp, Inc. (Stellar), formerly known as CBTX, reported net income of $12.7 million and diluted earnings per share of $0.52 for the third quarter 2022 compared to net income of $14.4 million and diluted earnings per share of $0.59 for the third quarter 2021. Net income for the nine months ended September 30, 2022 was $35.0 million, or $1.43 per diluted share, compared to $36.1 million, or $1.47 per diluted share, for the nine months ended September 30, 2021.

Allegiance reported net income of $14.3 million and diluted earnings per share of $0.71 for the third quarter 2022 compared to net income of $19.1 million and diluted earnings per share of $0.93 for the third quarter 2021. Net income for the nine months ended September 30, 2022 was $49.4 million, or $2.42 per diluted share, compared to $60.0 million, or $2.95 per diluted share, for the nine months ended September 30, 2021.

Third Quarter 2022 Financial Highlights

•CBTX highlights

◦Loans held for investment grew 12.3% (annualized), or $93.5 million, during the third quarter 2022 to $3.13 billion

◦Net interest income increased 23.3%, or $8.1 million, compared to the second quarter of 2022

◦Tax equivalent net interest margin increased 76 basis points to 4.25% compared to the second quarter of 2022

•Allegiance highlights

◦Loans held for investment grew 22.4% (annualized), or $243.1 million, during the third quarter 2022 to $4.59 billion

◦Net interest income increased 5.6%, or $3.2 million, compared to the second quarter of 2022

◦Tax equivalent net interest margin increased 32 basis points to 3.85% compared to the second quarter of 2022


	CBTX, Inc.						Allegiance Bancshares, Inc.

	3Q 2022			2Q 2022			3Q 2022			2Q 2022
	(Dollars in thousands, except per share data)
Net income	$	12,747		$	11,707		$	14,286		$	16,437
Pre-tax, pre-provision income(A)	$	17,140		$	14,660		$	19,654		$	22,282
Earnings per share, diluted	$	0.52		$	0.48		$	0.71		$	0.80
Efficiency ratio(B)	63.11		%	61.84		%	69.18		%	62.96		%
Acquisition and merger-related expenses	$	5,897		$	1,100		$	10,551		$	1,667
Adjusted pre-tax, pre-provision income(A)(C)	$	23,037		$	15,760		$	30,205		$	23,949


Adjusted efficiency ratio(A)(C)	50.42		%	58.98		%	52.61		%	60.19		%

(A)Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on pages 11 and 18 of this Earnings Release.

(B)Refer to the calculation of the efficiency ratio on pages 5 and 12 for CBTX and Allegiance, respectively.

(C)Adjusted results exclude the impact of acquisition and merger-related expenses.

“We are proud to have closed the merger between CBTX and Allegiance to become Stellar,” said Stellar’s Chief Executive Officer Robert R. Franklin, Jr. “Both of our organizations entered this merger from tremendous positions of strength and with great momentum, providing Stellar a solid foundation upon which to build.”

“Our teams have worked diligently to ensure a successful integration of these two organizations. Together we are stronger and committed to providing value for our shareholders as we drive purposeful growth, deliver continued personalized service and invest in the communities that we serve,” concluded Franklin.

CBTX, Inc. Third Quarter 2022 Results

CBTX’s net interest income in the third quarter 2022 increased $11.8 million, or 37.6%, to $43.0 million from $31.2 million for the third quarter 2021 and increased $8.1 million, or 23.3%, from $34.9 million for the second quarter 2022. These increases were primarily due to increased interest income on loans and interest-bearing deposits at other financial institutions as a result of changes in market interest rates and increases in average loans and securities. The net interest margin on a tax equivalent basis increased 103 basis points to 4.25% for the third quarter 2022 from 3.22% for the third quarter 2021 and increased 76 basis points from 3.49% for the second quarter 2022.

Noninterest income for the third quarter 2022 was $3.4 million, a decrease of $2.1 million, or 38.0%, compared to $5.6 million for the third quarter 2021 and a decrease of $97 thousand, or 2.7%, compared to $3.5 million for the second quarter 2022. The decrease in noninterest income of $2.1 million during the three months ended September 30, 2022 compared to the three months ended September 30, 2021, was primarily due to the impact of earnings on bank-owned life insurance and related gains of $1.9 million during the third quarter of 2021.

Noninterest expense for the third quarter 2022 increased $4.9 million, or 20.3%, to $29.3 million from $24.4 million for the third quarter 2021 and increased $5.6 million, or 23.4%, compared to the second quarter of 2022. The increase in noninterest expense for the third quarter of 2022 compared to the third quarter of 2021, was primarily due to acquisition and merger-related expenses associated with the merger with Allegiance, partially offset by a decrease in professional and director fees, primarily related to BSA/AML compliance matters and legal fees incurred during the third quarter of 2021. The increase in noninterest expense for the third quarter of 2022 compared to the second quarter of 2022 was primarily due to greater acquisition and merger-related expenses.

CBTX’s efficiency ratio decreased to 63.11% for the third quarter 2022 compared to 66.21% for the third quarter 2021 and increased from 61.84% for the second quarter 2022. Third quarter 2022 annualized returns on average assets, average equity and average tangible equity were 1.16%, 9.40% and 11.15%, respectively, compared to 1.37%, 10.15% and 11.95% for the third quarter 2021. Annualized returns on average assets, average equity and average tangible equity for the second quarter 2022 were 1.08%, 8.75% and 10.38%, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 11.

Financial Condition

CBTX’s total assets at September 30, 2022 increased $62.7 million, or 1.5%, to $4.27 billion compared to $4.21 billion at September 30, 2021 and decreased $50.5 million, or 4.6% (annualized), compared to $4.32 billion at June 30, 2022.

Total gross loans at September 30, 2022 increased $517.7 million, or 19.8%, to $3.13 billion compared to $2.61 billion at September 30, 2021, primarily due to organic loan growth, and increased $93.5 million, or 12.3% (annualized) compared to $3.03 billion at June 30, 2022 due to the increase in organic loans.

Deposits at September 30, 2022 increased $192.1 million, or 5.4%, to $3.72 billion compared to $3.53 billion at September 30, 2021 and decreased $32.9 million, or 3.5% (annualized), compared to $3.76 billion at June 30, 2022.

Asset Quality

CBTX’s nonperforming assets totaled $22.4 million, or 0.52% of total assets, at September 30, 2022 compared to $20.6 million, or 0.49% of total assets, at September 30, 2021 and $28.3 million, or 0.65% of total assets at June 30, 2022. The allowance for credit losses on loans as a percentage of total loans, excluding loans held for sale, was 1.04% at September 30, 2022, 1.23% at September 30, 2021 and 1.06% at June 30, 2022.

The provision for credit losses for the third quarter 2022 was $1.0 million compared to the recapture of provision for credit losses of $4.9 million for the third quarter 2021 and the provision for credit losses of $126 thousand for the second quarter 2022.

Third quarter 2022 net charge-offs were $33 thousand, or 0.00% (annualized) of average loans, compared to net recoveries of $82 thousand, or 0.01% (annualized) of average loans, for the third quarter 2021 and net recoveries of $166 thousand, or 0.02% (annualized) of average loans, for the second quarter 2022.

Allegiance Bancshares, Inc. Third Quarter 2022 Results

Allegiance’s net interest income in the third quarter 2022 increased $2.5 million, or 4.3%, to $60.7 million from $58.2 million for the third quarter 2021 and increased $3.2 million, or 5.6%, from $57.5 million for the second quarter 2022. These increases were primarily due to increased interest income on securities and loans as a result of changes in market interest rates. The net interest margin on a tax equivalent basis decreased 5 basis points to 3.85% for the third quarter 2022 from 3.90% for the third quarter 2021 and increased 32 basis points from 3.53% for the second quarter 2022. The decrease in the margin over the prior year was primarily due to the increase in funding costs. The increase in the margin over the prior quarter was primarily due to changes in market interest rates and the composition of earning assets.

Noninterest income for the third quarter 2022 was $3.0 million, an increase of $896 thousand, or 42.7%, compared to $2.1 million for the third quarter 2021 and an increase of $291 thousand, or 10.8%, compared to $2.7 million for the second quarter 2022. Third quarter 2022 other noninterest income included increased income from Small Business Investment Company investments.

Noninterest expense for the third quarter 2022 increased $9.7 million, or 28.4%, to $44.0 million from $34.3 million for the third quarter 2021 and increased $6.1 million, or 16.2%, compared to the second quarter of 2022. These increases in noninterest expense over the prior periods were primarily due to greater acquisition and merger-related expenses associated with the merger with CBTX.

Allegiance’s efficiency ratio increased to 69.18% for the third quarter 2022 compared to 56.91% for the third quarter 2021 and 62.96% for the second quarter 2022. Third quarter 2022 annualized returns on average assets, average equity and average tangible equity were 0.84%, 7.90% and 11.78%, respectively, compared to 1.14%, 9.45% and 13.49% for the third quarter 2021. Annualized returns on average assets, average equity and average tangible equity for the second quarter 2022 were 0.94%, 8.86% and 13.00%, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 18.

Financial Condition

Allegiance’s total assets at September 30, 2022 decreased $29.4 million, or 0.4%, to $6.73 billion compared to $6.76 billion at September 30, 2021 and decreased $1.4 million, or 0.1% (annualized), compared to $6.73 billion at June 30, 2022.

Total gross loans at September 30, 2022 increased $302.4 million, or 7.1%, to $4.59 billion compared to $4.29 billion at September 30, 2021, primarily due to organic loan growth, and increased $243.1 million, or 22.4% (annualized) compared to $4.35 billion at June 30, 2022, primarily due to the increase in organic loans. Core loans, which exclude Paycheck Protection Program (PPP) loans, increased $574.6 million, or 14.4%, to $4.57 billion at September 30, 2022 from $4.00 billion at September 30, 2021 and increased $257.1 million, or 23.8% (annualized), from $4.32 billion at June 30, 2022.

Deposits at September 30, 2022 decreased $6.2 million, or 0.1%, to $5.66 billion compared to $5.67 billion at September 30, 2021 and decreased $219.9 million, or 15.0% (annualized), compared to $5.88 billion at June 30, 2022.

Asset Quality

Allegiance’s nonperforming assets totaled $21.6 million, or 0.32% of total assets, at September 30, 2022 compared to $29.8 million, or 0.44% of total assets, at September 30, 2021 and $28.2 million, or 0.42% of total assets at June 30, 2022. The allowance for credit losses on loans as a percentage of total loans was 1.14% at September 30, 2022, 1.18% at September 30, 2021 and 1.16% at June 30, 2022.

The provision for credit losses for the third quarter 2022 was $2.0 million compared to the provision for credit losses of $2.3 million for the third quarter 2021 and the provision for credit losses of $2.1 million for the second quarter 2022.

Third quarter 2022 net recoveries were $245 thousand, or 0.02% (annualized) of average loans, compared to net charge-offs of $450 thousand, or 0.04% (annualized) of average loans, for the third quarter 2021 and net charge-offs of $571 thousand, or 0.05% (annualized) of average loans, for the second quarter 2022.

Share Repurchase Authorization

On September 22, 2022, the Board of Directors of CBTX authorized the repurchase of up to $40 million of outstanding CBTX (now Stellar) common stock through September 30, 2023. Repurchases under this program may be made from time to time through open market purchases, privately negotiated transactions or such other manners as will comply with applicable laws and regulations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The repurchase program does not obligate Stellar to purchase any particular number of shares and there is no guarantee as to the exact dollar amount or number of shares that will be repurchased by Stellar. Stellar may suspend, modify or terminate the program at any time and for any reason, without prior notice.

GAAP Reconciliation of Non-GAAP Financial Measures

Stellar’s management uses certain non-GAAP financial measures to evaluate its performance. Please refer to the GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures on pages 11 and 18 of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

As previously announced, Stellar’s management team will host a conference call and webcast on Friday, October 28, 2022 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss third quarter 2022 results of stand-alone CBTX and stand-alone Allegiance. Individuals and investment professionals may register for the conference call at https://register.vevent.com/register/BId5b581acd6f143fdb46c9666597c0d84 to receive the dial-in numbers and unique PIN to access the call. If you need assistance in obtaining a dial-in number, please contact [email protected]. A simultaneous audio-only webcast may be accessed via the Investor Relations section of Stellar’s website at https://IR.stellarbancorpinc.com/events-and-presentations. If you are unable to participate during the live webcast, the webcast will be accessible via the Investor Relations section of Stellar’s website at IR.stellarbancorpinc.com.

About Stellar Bancorp, Inc.

Stellar Bancorp, Inc. is a bank holding company headquartered in Houston, Texas. Stellar’s principal banking subsidiary, created by the merger of Allegiance Bank and CommunityBank of Texas, N.A. and to be renamed Stellar Bank upon system conversion, provides a diversified range of commercial banking services primarily to small- to medium-sized businesses and individual customers across the Houston, Dallas, Beaumont and surrounding communities in Texas.

Investor relations:

[email protected]

Forward-Looking Statements

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 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements about the benefits of the merger of CBTX, Inc. (now Stellar Bancorp, Inc.)(the "Company") and Allegiance Bancshares, Inc. ("Allegiance"), including future financial performance and operating results, the combined company’s plans, business and growth strategies, objectives, expectations and intentions, and other statements that are not historical facts, including 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. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “scheduled,” “plans,” “intends,” “projects,” “anticipates,” “expects,” “believes,” “estimates,” “potential,” “would,” or “continue” or negatives of such terms or other comparable terminology.

All forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Stellar to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, among others: (1) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized; (2) disruption to our business as a result of the merger; (3) the risk that the integration of our operations will be materially delayed or will be more costly or difficult than we expected or that we are otherwise unable to successfully integrate our legacy businesses; (4) the amount of the costs, fees, expenses and charges related to the merger; (5) reputational risk and the reaction of our customers, suppliers, employees or other business partners to the merger; (6) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (7) the dilution caused by Stellar’s issuance of additional shares of its common stock in the merger; (8) general competitive, economic, political and market conditions; and (9) other factors that may affect future results of Stellar including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Texas Department of Banking and legislative and regulatory actions and reforms.

Additional factors which could affect the Company’s future results can be found in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and the Joint Proxy Statement/Prospectus regarding the merger that CBTX filed with the SEC on April 7, 2022 pursuant to Rule 424(b)(3) and Allegiance’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC and available on the SEC’s website at https:// www.sec.gov. We disclaim any obligation and do not intend to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.

CBTX, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended															Nine Months Ended
	2022									2021						2022			2021
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
	(Dollars and share amounts in thousands, except per share data)
Net income (loss)	$	12,747		$	11,707		$	10,595		$	(545)		$	14,421		$	35,049		$	36,143

Earnings (loss) per share, basic	$	0.52		$	0.48		$	0.43		$	(0.02)		$	0.59		$	1.43		$	1.48
Earnings (loss) per share, diluted	$	0.52		$	0.48		$	0.43		$	(0.02)		$	0.59		$	1.43		$	1.47

Dividends per share	$	0.13		$	0.13		$	0.13		$	0.13		$	0.13		$	0.39		$	0.39

Return on average assets(A)	1.16		%	1.08		%	0.97		%	(0.05		%)	1.37		%	1.07		%	1.19		%
Return on average equity(A)	9.40		%	8.75		%	7.67		%	(0.38		%)	10.15		%	8.60		%	8.70		%
Return on average tangible equity(A)(B)	11.15		%	10.38		%	9.03		%	(0.45		%)	11.95		%	10.18		%	10.27		%
Net interest margin (tax equivalent)(A)(C)	4.25		%	3.49		%	3.22		%	3.07		%	3.22		%	3.65		%	3.40		%
Efficiency ratio(D)	63.11		%	61.84		%	64.94		%	99.78		%	66.21		%	63.28		%	67.76		%

Capital Ratios
CBTX, Inc.(Consolidated)
Equity to assets	11.74		%	12.19		%	12.14		%	12.53		%	13.41		%	11.74		%	13.41		%
Tangible equity to tangible assets(B)	9.96		%	10.44		%	10.44		%	10.85		%	11.64		%	9.96		%	11.64		%
Estimated common equity tier 1 capital	14.05		%	14.49		%	14.97		%	15.31		%	16.87		%	14.05		%	16.87		%
Estimated tier 1 risk-based capital	14.05		%	14.49		%	14.97		%	15.31		%	16.87		%	14.05		%	16.87		%
Estimated total risk-based capital	15.09		%	15.53		%	16.06		%	16.42		%	18.12		%	15.09		%	18.12		%
Estimated tier 1 leverage capital	11.42		%	11.48		%	11.08		%	11.22		%	11.69		%	11.42		%	11.69		%
CommunityBank of Texas
Estimated common equity tier 1 capital	13.81		%	13.77		%	14.13		%	14.43		%	15.88		%	13.81		%	15.88		%
Estimated tier 1 risk-based capital	13.81		%	13.77		%	14.13		%	14.43		%	15.88		%	13.81		%	15.88		%
Estimated total risk-based capital	14.85		%	14.82		%	15.22		%	15.54		%	17.13		%	14.85		%	17.13		%
Estimated tier 1 leverage capital	11.22		%	10.91		%	10.47		%	10.58		%	11.01		%	11.22		%	11.01		%

Other Data
Weighted average shares:
Basic	24,345			24,493			24,497			24,437			24,432			24,445			24,462
Diluted	24,464			24,593			24,605			24,575			24,544			24,552			24,572
Period end shares outstanding	24,015			24,425			24,502			24,488			24,420			24,015			24,420
Book value per share	$	20.88		$	21.56		$	22.03		$	22.96		$	23.12		$	20.88		$	23.12
Tangible book value per share(B)	$	17.38		$	18.11		$	18.58		$	19.50		$	19.65		$	17.38		$	19.65
Employees - full-time equivalents	487			491			503			506			520			487			520

(A)Interim periods annualized.

(B)Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on page 11 of this Earnings Release.

(C)Net interest margin represents net interest income divided by average interest-earning assets.

(D)Represents total noninterest expense divided by the sum of net interest income plus noninterest income.

CBTX, Inc.

Financial Highlights

(Unaudited)


	2022						2021
	September 30		June 30		March 31		December 31		September 30
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	41,219	$	41,951	$	47,718	$	27,689	$	50,642
Interest-bearing deposits at other financial institutions	329,229		442,015		723,273		922,457		948,143
Total cash and cash equivalents	370,448		483,966		770,991		950,146		998,785
Available for sale securities, at fair value	511,282		550,083		547,979		425,046		359,539
Equity investments	17,835		18,073		17,101		17,727		17,349
Loans held for sale	—		—		748		164		327
Loans held for investment	3,126,421		3,032,914		2,879,880		2,867,524		2,608,402
Less: allowance for credit losses on loans	(32,577)		(32,087)		(31,442)		(31,345)		(32,208)
Loans, net	3,093,844		3,000,827		2,848,438		2,836,179		2,576,194
Premises and equipment, net	55,594		56,010		56,665		58,417		59,235
Goodwill	80,950		80,950		80,950		80,950		80,950
Other intangible assets, net	3,188		3,353		3,540		3,658		3,702
Bank owned life insurance	74,274		73,898		73,527		73,156		72,771
Operating lease right-to-use assets	10,992		11,324		10,850		11,191		11,527
Deferred tax assets, net	29,581		22,699		16,724		9,973		9,760
Other assets	23,843		21,120		18,464		19,394		18,980
Total assets	$	4,271,831	$	4,322,303	$	4,445,977	$	4,486,001	$	4,209,119
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	1,780,473	$	1,810,275	$	1,801,323	$	1,784,981	$	1,628,144
Interest-bearing
Demand	415,970		445,149		444,571		468,361		386,196
Money market and savings	1,273,855		1,239,978		1,348,300		1,336,690		1,257,961
Certificates and other time	253,476		261,232		227,031		241,252		259,334
Total interest-bearing deposits	1,943,301		1,946,359		2,019,902		2,046,303		1,903,491
Total deposits	3,723,774		3,756,634		3,821,225		3,831,284		3,531,635
Operating lease liabilities	13,748		14,169		13,752		14,142		14,556
Federal Home Loan Bank advances	—		—		50,000		50,000		50,000
Other liabilities	32,884		24,821		21,277		28,450		48,335
Total liabilities	3,770,406		3,795,624		3,906,254		3,923,876		3,644,526
SHAREHOLDERS’ EQUITY:
Common stock	240		253		253		253		253
Capital surplus	308,197		334,104		336,214		335,846		335,226
Retained earnings	262,804		253,180		244,672		237,165		241,012
Treasury stock	—		(14,046)		(14,196)		(14,196)		(14,334)
Accumulated other comprehensive (loss) income	(69,816)		(46,812)		(27,220)		3,057		2,436
Total shareholders’ equity	501,425		526,679		539,723		562,125		564,593
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	4,271,831	$	4,322,303	$	4,445,977	$	4,486,001	$	4,209,119

CBTX, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended										Nine Months Ended
	2022						2021				2022		2021
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Interest and fees on loans	$	39,058	$	31,768	$	31,221	$	29,882	$	30,765	$	102,047	$	94,723
Securities	3,046		2,937		2,292		1,796		1,435		8,275		3,940
Interest-bearing deposits at other financial institutions	2,408		1,238		348		383		340		3,994		740
Equity investments	161		158		154		168		157		473		461
Total interest income	44,673		36,101		34,015		32,229		32,697		114,789		99,864

INTEREST EXPENSE:
Deposits	1,661		1,178		1,164		1,180		1,227		4,003		3,844
Federal Home Loan Bank advances	—		51		221		222		221		272		663
Other interest-bearing liabilities	—		—		—		17		—		—		—
Total interest expense	1,661		1,229		1,385		1,419		1,448		4,275		4,507
NET INTEREST INCOME	43,012		34,872		32,630		30,810		31,249		110,514		95,357
Provision (recapture) for credit losses for loans	523		479		20		(901)		(5,057)		1,022		(8,961)
Provision (recapture) for credit losses for unfunded commitments	489		(353)		415		(306)		162		551		(605)
Total provision (recapture) for credit losses	1,012		126		435		(1,207)		(4,895)		1,573		(9,566)
Net interest income after provision (recapture) for credit losses	42,000		34,746		32,195		32,017		36,144		108,941		104,923

NONINTEREST INCOME:
Deposit account service charges	1,320		1,386		1,370		1,370		1,352		4,076		3,712
Card interchange fees	1,056		1,135		1,037		1,081		1,048		3,228		3,119
Earnings on bank-owned life insurance	376		371		371		385		2,323		1,118		3,103
Net gain on sales of assets	85		58		530		910		360		673		918
Other	612		596		2,021		354		479		3,229		1,312
Total noninterest income	3,449		3,546		5,329		4,100		5,562		12,324		12,164

NONINTEREST EXPENSE:
Salaries and employee benefits	14,706		14,698		15,254		16,609		15,000		44,658		43,922
Occupancy expense	2,595		2,386		2,371		2,606		2,660		7,352		7,778
Professional and director fees	836		1,140		879		756		1,167		2,855		5,271
Data processing and software	1,502		1,210		1,763		1,716		1,629		4,475		4,866
Regulatory fees	599		803		614		8,366		478		2,016		1,535
Advertising, marketing and business development	350		366		249		263		493		965		1,288
Telephone and communications	348		349		454		471		516		1,151		1,529
Security and protection expense	386		170		324		439		425		880		1,352
Amortization of intangibles	165		172		181		179		182		518		559
Acquisition and merger-related expenses	5,897		1,100		784		1,293		400		7,781		1,689
Other expenses	1,937		1,364		1,779		2,134		1,422		5,080		3,065
Total noninterest expense	29,321		23,758		24,652		34,832		24,372		77,731		72,854
INCOME BEFORE INCOME TAXES	16,128		14,534		12,872		1,285		17,334		43,534		44,233
Provision for income taxes	3,381		2,827		2,277		1,830		2,913		8,485		8,090
NET INCOME (LOSS)	$	12,747	$	11,707	$	10,595	$	(545)	$	14,421	$	35,049	$	36,143

EARNINGS PER SHARE
Basic	$	0.52	$	0.48	$	0.43	$	(0.02)	$	0.59	$	1.43	$	1.48
Diluted	$	0.52	$	0.48	$	0.43	$	(0.02)	$	0.59	$	1.43	$	1.47

CBTX, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended
	September 30, 2022						June 30, 2022						September 30, 2021
	Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate(A)		Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate(A)		Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate(A)
	(Dollars in thousands)
Assets
Interest-Earning Assets:
Total loans(B)	$	3,074,655	$	39,058	5.04	%	$	2,897,335	$	31,768	4.40	%	$	2,702,248	$	30,765	4.52	%
Securities	552,901		3,046		2.19	%	562,518		2,937		2.09	%	327,968		1,435		1.74	%
Interest-bearing deposits at other financial institutions	428,196		2,408		2.23	%	593,255		1,238		0.84	%	854,406		340		0.16	%
Equity investments	13,393		161		4.77	%	13,386		158		4.73	%	13,367		157		4.66	%
Total interest-earning assets	4,069,145		$	44,673	4.36	%	4,066,494		$	36,101	3.56	%	3,897,989		$	32,697	3.33	%
Allowance for credit losses on loans	(32,106)						(31,081)						(36,945)
Noninterest-earning assets	318,761						315,133						313,901
Total assets	$	4,355,800					$	4,350,546					$	4,174,945
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing deposits	$	1,954,854	$	1,661	0.34	%	$	1,939,990	$	1,178	0.24	%	$	1,895,617	$	1,227	0.26	%
Federal Home Loan Bank advances	—		—		0.00	%	5,495		51		3.72	%	50,000		221		1.75	%
Total interest-bearing liabilities	1,954,854		$	1,661	0.34	%	1,945,485		$	1,229	0.25	%	1,945,617		$	1,448	0.30	%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	1,822,323						1,825,400						1,612,985
Other liabilities	40,684						42,861						52,712
Total noninterest-bearing liabilities	1,863,007						1,868,261						1,665,697
Shareholders' equity	537,939						536,800						563,631
Total liabilities and shareholders' equity	$	4,355,800					$	4,350,546					$	4,174,945
Net interest income			$	43,012					$	34,872					$	31,249
Net interest spread(C)					4.02	%					3.31	%					3.03	%
Net interest margin(D)					4.19	%					3.44	%					3.18	%
Net interest margin - tax equivalent(E)					4.25	%					3.49	%					3.22	%

(A)Annualized.

(B)Includes average outstanding balances related to loans held for sale.

(C)Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

(D)Net interest margin is equal to net interest income divided by average interest-earning assets.

(E)Tax equivalent adjustments of $578 thousand, $478 thousand and $369 thousand for the three months ended September 30, 2022, June 30, 2022 and September 30, 2021, respectively, were computed using a federal income tax rate of 21%.

CBTX, Inc.

Financial Highlights

(Unaudited)


	Nine Months Ended September 30,
	2022						2021
	Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate(A)		Average Outstanding Balance		Interest Earned/ Interest Paid		Average Yield/ Rate(A)
	(Dollars in thousands)
Assets
Interest-Earning Assets:
Total loans(B)	$	2,953,607	$	102,047	4.62	%	$	2,812,449	$	94,723	4.50	%
Securities	537,889		8,275		2.06	%	296,958		3,940		1.77	%
Interest-bearing deposits at other financial institutions	595,458		3,994		0.90	%	668,119		740		0.15	%
Equity investments	13,386		473		4.72	%	14,679		461		4.20	%
Total interest-earning assets	4,100,340		$	114,789	3.74	%	3,792,205		$	99,864	3.52	%
Allowance for credit losses on loans	(31,599)						(39,594)
Noninterest-earning assets	313,938						318,009
Total assets	$	4,382,679					$	4,070,620
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing deposits	$	1,971,247	$	4,003	0.27	%	$	1,846,211	$	3,844	0.28	%
Federal Home Loan Bank advances	18,315		272		1.99	%	50,000		663		1.77	%
Total interest-bearing liabilities	1,989,562		$	4,275	0.29	%	1,896,211		4,507		0.32	%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	1,803,702						1,568,071
Other liabilities	44,479						50,966
Total noninterest-bearing liabilities	1,848,181						1,619,037
Shareholders' equity	544,936						555,372
Total liabilities and shareholders' equity	$	4,382,679					$	4,070,620
Net interest income			$	110,514					$	95,357
Net interest spread(C)					3.45	%					3.20	%
Net interest margin(D)					3.60	%					3.36	%
Net interest margin - tax equivalent(E)					3.65	%					3.40	%

(A)Annualized.

(B)Includes average outstanding balances related to loans held for sale.

(C)Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

(D)Net interest margin is equal to net interest income divided by average interest-earning assets.

(E)Tax equivalent adjustments of $1.5 million and $989 thousand for the nine months ended September 30, 2022 and 2021, respectively, were computed using a federal income tax rate of 21%.

CBTX, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended
	2022									2021
	September 30			June 30			March 31			December 31			September 30
	(Dollars in thousands)
Loan Portfolio:
Commercial and industrial	$	568,071		$	581,443		$	600,990		$	634,384		$	596,251
Real estate:
Commercial real estate	1,242,118			1,181,620			1,142,646			1,091,969			1,029,137
Construction and development	507,570			560,903			473,326			460,719			393,541
1-4 family residential	288,456			264,428			263,213			277,273			204,151
Multi-family residential	370,391			300,582			279,099			286,396			285,852
Consumer	24,509			26,810			28,230			28,090			27,930
Agriculture	11,185			8,036			6,287			7,941			8,780
Other	123,591			118,153			95,187			89,655			71,915
Gross loans	3,135,891			3,041,975			2,888,978			2,876,427			2,617,557
Less allowance for credit losses	(32,577)			(32,087)			(31,442)			(31,345)			(32,208)
Less deferred fees and unearned discount	(9,470)			(9,061)			(8,350)			(8,739)			(8,828)
Less loans held for sale	—			—			(748)			(164)			(327)
Loans, net	$	3,093,844		$	3,000,827		$	2,848,438		$	2,836,179		$	2,576,194

Deposits:
Interest-bearing demand accounts	$	415,970		$	445,149		$	444,571		$	468,361		$	386,196
Money market accounts	1,144,969			1,109,265			1,218,082			1,209,659			1,139,167
Savings accounts	128,886			130,713			130,218			127,031			118,794
Certificates and other time deposits, $100,000 or greater	161,975			169,616			127,798			134,775			140,740
Certificates and other time deposits, less than $100,000	91,501			91,616			99,233			106,477			118,594
Total interest-bearing deposits	1,943,301			1,946,359			2,019,902			2,046,303			1,903,491
Noninterest-bearing deposits	1,780,473			1,810,275			1,801,323			1,784,981			1,628,144
Total deposits	$	3,723,774		$	3,756,634		$	3,821,225		$	3,831,284		$	3,531,635

Asset Quality:
Nonaccrual loans	$	22,410		$	28,273		$	22,083		$	22,568		$	20,585
Accruing loans 90 or more days past due	—			—			—			—			—
Total nonperforming loans	22,410			28,273			22,083			22,568			20,585
Other real estate	—			—			—			—			—
Total nonperforming assets	$	22,410		$	28,273		$	22,083		$	22,568		$	20,585

Net charge-offs (recoveries)	$	33		$	(166)		$	(77)		$	(38)		$	(82)

Nonaccrual loans:
Commercial and industrial	$	7,985		$	8,312		$	8,765		$	9,090		$	9,773
Real estate:
Commercial real estate	11,076			16,481			11,363			11,512			10,419
Construction and development	139			143			140			142			—
1-4 family residential	3,176			3,302			1,777			1,784			351
Multi-family residential	—			—			—			—			—
Consumer	—			—			—			—			—
Agriculture	—			—			—			—			—
Other	34			35			38			40			42
Total nonaccrual loans	$	22,410		$	28,273		$	22,083		$	22,568		$	20,585

Asset Quality Ratios:
Nonperforming assets to total assets	0.52		%	0.65		%	0.50		%	0.50		%	0.49		%
Nonperforming loans to loans excluding loans held for sale	0.72		%	0.93		%	0.77		%	0.79		%	0.79		%
Allowance for credit losses on loans to nonperforming loans	145.37		%	113.49		%	142.38		%	138.89		%	156.46		%
Allowance for credit losses on loans to loans excluding loans held for sale	1.04		%	1.06		%	1.09		%	1.09		%	1.23		%
Net charge-offs (recoveries) to average loans (annualized)	0.00		%	(0.02		%)	(0.01		%)	(0.01		%)	(0.01		%)

CBTX, Inc.

GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures

(Unaudited)

CBTX’s management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. CBTX believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing CBTX’s performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, CBTX reviews pre-tax, pre-provision income, adjusted pre-tax, pre-provision income, adjusted efficiency ratio, tangible book value per share, return on average tangible equity and the ratio of tangible equity to tangible assets for internal planning and forecasting purposes. CBTX has included in this earnings release information relating to these non-GAAP financial measures for the applicable periods presented. These non-GAAP measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which CBTX calculates the non-GAAP financial measures may differ from that of other companies reporting measures with similar names.


	Three Months Ended															Nine Months Ended
	2022									2021						2022			2021
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
	(Dollars and share amounts in thousands, except per share data)
Net income	$	12,747		$	11,707		$	10,595		$	(545)		$	14,421		$	35,049		$	36,143
Add: Provision for credit losses	1,012			126			435			(1,207)			(4,895)			1,573			(9,566)
Add: Provision for income taxes	3,381			2,827			2,277			1,830			2,913			8,485			8,090
Pre-tax, pre-provision income	$	17,140		$	14,660		$	13,307		$	78		$	12,439		$	45,107		$	34,667

Pre-tax, pre-provision income	$	17,140		$	14,660		$	13,307		$	78		$	12,439		$	45,107		$	34,667
Add: Acquisition and merger-related expenses	5,897			1,100			784			1,293			400			7,781			1,689
Adjusted pre-tax, pre-provision income	$	23,037		$	15,760		$	14,091		$	1,371		$	12,839		$	52,888		$	36,356








Total noninterest expense	$	29,321		$	23,758		$	24,652		$	34,832		$	24,372		$	77,731		$	72,854
Acquisition and merger-related expenses	5,897			1,100			784			1,293			400			7,781			1,689
Net interest income	43,012			34,872			32,630			30,810			31,249			110,514			95,357
Total noninterest income	3,449			3,546			5,329			4,100			5,562			12,324			12,164
Adjusted efficiency ratio(A)	50.42%			58.98%			62.88%			96.07%			65.12%			56.94%			66.19%

Total shareholders' equity	$	501,425		$	526,679		$	539,723		$	562,125		$	564,593		$	501,425		$	564,593
Less: Goodwill and other intangible assets, net	84,138			84,303			84,490			84,608			84,652			84,138			84,652
Tangible shareholders’ equity	$	417,287		$	442,376		$	455,233		$	477,517		$	479,941		$	417,287		$	479,941

Shares outstanding at end of period	24,015			24,425			24,502			24,488			24,420			24,015			24,420

Tangible book value per share	$	17.38		$	18.11		$	18.58		$	19.50		$	19.65		$	17.38		$	19.65

Net income	$	12,747		$	11,707		$	10,595		$	(545)		$	14,421		$	35,049		$	36,143

Average shareholders' equity	$	537,939		$	536,800		$	560,315		$	568,167		$	563,631		$	544,936		$	555,372
Less: Average goodwill and other intangible assets, net	84,242			84,413			84,584			84,643			84,753			84,413			84,901
Average tangible shareholders’ equity	$	453,697		$	452,387		$	475,731		$	483,524		$	478,878		$	460,523		$	470,471

Return on average tangible equity(B)	11.15		%	10.38		%	9.03		%	(0.45		%)	11.95		%	10.18		%	10.27		%

Total assets	$	4,271,831		$	4,322,303		$	4,445,977		$	4,486,001		$	4,209,119		$	4,271,831		$	4,209,119
Less: Goodwill and other intangible assets, net	84,138			84,303			84,490			84,608			84,652			84,138			84,652
Tangible assets	$	4,187,693		$	4,238,000		$	4,361,487		$	4,401,393		$	4,124,467		$	4,187,693		$	4,124,467

Tangible equity to tangible assets	9.96		%	10.44		%	10.44		%	10.85		%	11.64		%	9.96		%	11.64		%

(A)Represents total noninterest expense, excluding acquisition and merger-related expenses, divided by the sum of net interest income plus noninterest income. Additionally, taxes and provision for credit losses are not part of this calculation.

(B)Interim periods annualized.

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended															Nine Months Ended
	2022									2021						2022			2021
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
	(Dollars and share amounts in thousands, except per share data)
Net income	$	14,286		$	16,437		$	18,657		$	21,558		$	19,060		$	49,380		$	59,995

Earnings per share, basic	$	0.72		$	0.81		$	0.92		$	1.06		$	0.94		$	2.44		$	2.97
Earnings per share, diluted	$	0.71		$	0.80		$	0.91		$	1.06		$	0.93		$	2.42		$	2.95

Dividends per share	$	0.14		$	0.14		$	0.14		$	0.12		$	0.12		$	0.42		$	0.36

Return on average assets(A)	0.84		%	0.94		%	1.04		%	1.23		%	1.14		%	0.94		%	1.25		%
Return on average equity(A)	7.90		%	8.86		%	9.40		%	10.60		%	9.45		%	8.74		%	10.30		%
Return on average tangible equity(A)(B)	11.78		%	13.00		%	13.35		%	15.05		%	13.49		%	12.75		%	14.89		%
Net interest margin (tax equivalent)(A)(C)	3.85		%	3.53		%	3.30		%	3.57		%	3.90		%	3.55		%	4.03		%
Efficiency ratio(D)	69.18		%	62.96		%	58.32		%	60.68		%	56.91		%	63.62		%	58.24		%

Capital Ratios
Allegiance Bancshares, Inc.(Consolidated)
Equity to assets	9.75		%	10.48		%	10.52		%	11.49		%	11.81		%	9.75		%	11.81		%
Tangible equity to tangible assets(B)	6.47		%	7.21		%	7.44		%	8.42		%	8.58		%	6.47		%	8.58		%
Estimated common equity tier 1 capital	11.39		%	12.06		%	12.28		%	12.47		%	12.37		%	11.39		%	12.37		%
Estimated tier 1 risk-based capital	11.58		%	12.26		%	12.49		%	12.69		%	12.60		%	11.58		%	12.60		%
Estimated total risk-based capital	14.66		%	15.47		%	15.76		%	16.08		%	16.13		%	14.66		%	16.13		%
Estimated tier 1 leverage capital	9.00		%	8.65		%	8.37		%	8.53		%	8.76		%	9.00		%	8.76		%
Allegiance Bank
Estimated common equity tier 1 capital	12.20		%	12.51		%	12.48		%	12.63		%	12.81		%	12.20		%	12.81		%
Estimated tier 1 risk-based capital	12.20		%	12.51		%	12.48		%	12.63		%	12.81		%	12.20		%	12.81		%
Estimated total risk-based capital	14.12		%	14.50		%	14.50		%	14.71		%	14.98		%	14.12		%	14.98		%
Estimated tier 1 leverage capital	9.49		%	8.83		%	8.37		%	8.49		%	8.91		%	9.49		%	8.91		%

Other Data
Weighted average shares:
Basic	19,942			20,357			20,363			20,260			20,221			20,219			20,188
Diluted	20,114			20,530			20,526			20,423			20,411			20,376			20,369
Period end shares outstanding	19,837			20,154			20,378			20,337			20,218			19,837			20,218
Book value per share	$	33.08		$	35.00		$	36.90		$	40.15		$	39.50		$	33.08		$	39.50
Tangible book value per share(B)	$	21.19		$	23.25		$	25.24		$	28.43		$	27.67		$	21.19		$	27.67
Employees - full-time equivalents	562			578			586			594			603			562			603

(A)Interim periods annualized.

(B)Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on page 18 of this Earnings Release.

(C)Net interest margin represents net interest income divided by average interest-earning assets.

(D)Represents total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for credit losses are not part of this calculation.

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	2022						2021
	September 30		June 30		March 31		December 31		September 30
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	16,449	$	17,547	$	26,629	$	23,961	$	23,903
Interest-bearing deposits at other financial institutions	102,118		275,290		672,755		733,548		879,858
Total cash and cash equivalents	118,567		292,837		699,384		757,509		903,761
Available for sale securities, at fair value	1,618,995		1,709,321		1,790,707		1,773,765		1,211,476
Loans held for investment	4,591,912		4,348,833		4,283,514		4,220,486		4,289,469
Less: allowance for credit losses on loans	(52,147)		(50,242)		(49,215)		(47,940)		(50,491)
Loans, net	4,539,765		4,298,591		4,234,299		4,172,546		4,238,978
Accrued interest receivable	29,697		29,882		31,505		33,392		33,523
Premises and equipment, net	57,837		58,482		62,168		63,708		65,140
Other real estate owned	—		—		—		—		1,397
Federal Home Loan Bank stock	16,843		4,078		9,376		9,358		8,326
Bank owned life insurance	28,305		28,170		28,374		28,240		28,101
Goodwill	223,642		223,642		223,642		223,642		223,642
Core deposit intangibles, net	12,406		13,156		13,907		14,658		15,482
Other assets	84,285		73,605		56,001		28,136		29,935
Total assets	$	6,730,342	$	6,731,764	$	7,149,363	$	7,104,954	$	6,759,761
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	2,465,839	$	2,394,719	$	2,353,604	$	2,243,085	$	2,086,683
Interest-bearing
Demand	956,920		1,016,381		1,070,855		869,984		594,959
Money market and savings	1,471,690		1,510,008		1,552,853		1,643,745		1,604,222
Certificates and other time	766,270		959,524		1,185,015		1,290,825		1,381,014
Total interest-bearing deposits	3,194,880		3,485,913		3,808,723		3,804,554		3,580,195
Total deposits	5,660,719		5,880,632		6,162,327		6,047,639		5,666,878
Accrued interest payable	2,673		1,500		3,086		1,753		3,296
Borrowed funds	257,000		—		89,959		89,956		139,954
Subordinated debt	109,241		109,109		108,978		108,847		108,715
Other liabilities	44,407		35,194		33,073		40,291		42,326
Total liabilities	6,074,040		6,026,435		6,397,423		6,288,486		5,961,169
SHAREHOLDERS’ EQUITY:
Common stock	19,837		20,154		20,378		20,337		20,218
Capital surplus	491,878		504,165		512,284		510,797		507,948
Retained earnings	307,975		296,477		282,896		267,092		247,966
Accumulated other comprehensive (loss) income	(163,388)		(115,467)		(63,618)		18,242		22,460
Total shareholders’ equity	656,302		705,329		751,940		816,468		798,592
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,730,342	$	6,731,764	$	7,149,363	$	7,104,954	$	6,759,761

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended										Nine Months Ended
	2022						2021				2022		2021
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	58,025	$	53,835	$	52,370	$	56,855	$	58,176	$	164,230	$	173,858
Securities:
Taxable	6,655		5,571		5,068		3,933		2,998		17,294		7,956
Tax-exempt	2,594		2,557		2,525		2,526		2,498		7,676		7,383
Deposits in other financial institutions	608		877		340		317		221		1,825		356
Total interest income	67,882		62,840		60,303		63,631		63,893		191,025		189,553

INTEREST EXPENSE:
Demand, money market and savings deposits	3,527		1,859		1,347		1,277		1,267		6,733		4,088
Certificates and other time deposits	1,664		1,922		2,156		2,391		2,583		5,742		9,237
Borrowed funds	499		114		186		434		436		799		1,444
Subordinated debt	1,502		1,463		1,442		1,425		1,441		4,407		4,324
Total interest expense	7,192		5,358		5,131		5,527		5,727		17,681		19,093
NET INTEREST INCOME	60,690		57,482		55,172		58,104		58,166		173,344		170,460
Provision for credit losses	1,962		2,143		1,814		(2,577)		2,295		5,919		255
Net interest income after provision for credit losses	58,728		55,339		53,358		60,681		55,871		167,425		170,205

NONINTEREST INCOME:
Nonsufficient funds fees	145		126		116		156		131		387		308
Service charges on deposit accounts	527		560		527		476		425		1,614		1,195
Gain (loss) on sale of securities	42		(17)		—		—		—		25		49
Loss on sale of other real estate and repossessed assets	—		—		—		(89)		—		—		(176)
Bank owned life insurance	135		342		133		139		125		610		415
Debit card and ATM card income	869		880		819		834		771		2,568		2,162
Other	1,277		813		2,423		938		647		4,513		2,155
Total noninterest income	2,995		2,704		4,018		2,454		2,099		9,717		6,108

NONINTEREST EXPENSE:
Salaries and employee benefits	22,013		21,864		22,728		22,918		22,335		66,605		67,259
Net occupancy and equipment	2,129		2,220		2,205		2,194		2,335		6,554		6,950
Depreciation	1,003		1,012		1,033		1,103		1,060		3,048		3,151
Data processing and software amortization	2,541		2,522		2,498		2,264		2,222		7,561		6,598
Professional fees	485		662		138		1,008		620		1,285		2,017
Regulatory assessments and FDIC insurance	1,134		1,256		1,261		949		883		3,651		2,458
Core deposit intangibles amortization	750		751		751		824		824		2,252		2,472
Communications	359		363		341		395		358		1,063		1,011
Advertising	385		483		462		481		481		1,330		1,211
Other real estate expense	93		65		59		69		137		217		479
Acquisition and merger-related expenses	10,551		1,667		451		1,408		603		12,669		603
Other	2,588		5,039		2,590		3,131		2,438		10,217		8,601
Total noninterest expense	44,031		37,904		34,517		36,744		34,296		116,452		102,810
INCOME BEFORE INCOME TAXES	17,692		20,139		22,859		26,391		23,674		60,690		73,503
Provision for income taxes	3,406		3,702		4,202		4,833		4,614		11,310		13,508
NET INCOME	$	14,286	$	16,437	$	18,657	$	21,558	$	19,060	$	49,380	$	59,995

EARNINGS PER SHARE
Basic	$	0.72	$	0.81	$	0.92	$	1.06	$	0.94	$	2.44	$	2.97
Diluted	$	0.71	$	0.80	$	0.91	$	1.06	$	0.93	$	2.42	$	2.95

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended
	September 30, 2022						June 30, 2022						September 30, 2021
	Average Balance		Interest Earned/ Interest Paid		Average Yield/ Rate		Average Balance		Interest Earned/ Interest Paid		Average Yield/ Rate		Average Balance		Interest Earned/ Interest Paid		Average Yield/ Rate
	(Dollars in thousands)
Assets
Interest-Earning Assets:
Loans	$	4,456,174	$	58,025	5.17	%	$	4,303,714	$	53,835	5.02	%	$	4,336,443	$	58,176	5.32	%
Securities	1,709,470		9,249		2.15	%	1,778,745		8,128		1.83	%	1,070,851		5,496		2.04	%
Deposits in other financial institutions	160,340		608		1.50	%	535,546		877		0.66	%	588,859		221		0.15	%
Total interest-earning assets	6,325,984		$	67,882	4.26	%	6,618,005		$	62,840	3.81	%	5,996,153		$	63,893	4.23	%
Allowance for credit losses on loans	(50,609)						(49,290)						(49,381)
Noninterest-earning assets	442,511						450,584						680,682
Total assets	$	6,717,886					$	7,019,299					$	6,627,454

Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	978,531	$	2,380	0.96	%	$	1,044,493	$	927	0.36	%	$	576,144	$	324	0.22	%
Money market and savings deposits	1,500,083		1,147		0.30	%	1,566,376		932		0.24	%	1,565,965		943		0.24	%
Certificates and other time deposits	877,231		1,664		0.75	%	1,088,664		1,922		0.71	%	1,363,121		2,583		0.75	%
Borrowed funds	68,752		499		2.88	%	50,116		114		0.91	%	139,844		436		1.24	%
Subordinated debt	109,177		1,502		5.46	%	109,045		1,463		5.38	%	108,652		1,441		5.26	%
Total interest-bearing liabilities	3,533,774		$	7,192	0.81	%	3,858,694		$	5,358	0.56	%	3,753,726		$	5,727	0.61	%

Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	2,424,884						2,382,230						2,031,399
Other liabilities	41,792						34,249						42,183
Total liabilities	6,000,450						6,275,173						5,827,308
Shareholders' equity	717,436						744,126						800,146
Total liabilities and shareholders' equity	$	6,717,886					$	7,019,299					$	6,627,454

Net interest rate spread					3.45	%					3.25	%					3.62	%

Net interest income and margin			$	60,690	3.81	%			$	57,482	3.48	%			$	58,166	3.85	%

Net interest income and net interest margin (tax equivalent)			$	61,418	3.85	%			$	58,238	3.53	%			$	58,873	3.90	%

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Nine Months Ended September 30,
	2022						2021
	Average Balance		Interest Earned/ Interest Paid		Average Yield/ Rate		Average Balance		Interest Earned/ Interest Paid		Average Yield/Rate
	(Dollars in thousands)
Assets
Interest-Earning Assets:
Loans	$	4,331,288	$	164,230	5.07	%	$	4,482,684	$	173,858	5.19	%
Securities	1,774,149		24,970		1.88	%	913,078		15,339		2.25	%
Deposits in other financial institutions	498,456		1,825		0.49	%	328,238		356		0.15	%
Total interest-earning assets	6,603,893		$	191,025	3.87	%	5,724,000		$	189,553	4.43	%
Allowance for credit losses on loans	(49,422)						(51,802)
Noninterest-earning assets	441,767						758,774
Total assets	$	6,996,238					$	6,430,972

Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	1,031,006	$	3,856	0.50	%	$	523,272	$	1,021	0.26	%
Money market and savings deposits	1,549,969		2,877		0.25	%	1,555,791		3,067		0.26	%
Certificates and other time deposits	1,069,011		5,742		0.72	%	1,354,000		9,237		0.91	%
Borrowed funds	69,492		799		1.54	%	146,244		1,444		1.32	%
Subordinated debt	109,046		4,407		5.40	%	108,522		4,324		5.33	%
Total interest-bearing liabilities	3,828,524		$	17,681	0.62	%	3,687,829		19,093		0.69	%

Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	2,373,489						1,923,584
Other liabilities	39,123						40,568
Total liabilities	6,241,136						5,651,981
Shareholders' equity	755,102						778,991
Total liabilities and shareholders' equity	$	6,996,238					$	6,430,972

Net interest rate spread					3.25	%					3.74	%

Net interest income and margin			$	173,344	3.51	%			$	170,460	3.98	%

Net interest income and net interest margin (tax equivalent)			$	175,578	3.55	%			$	172,477	4.03	%

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended
	2022									2021
	September 30			June 30			March 31			December 31			September 30
	(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial	$	732,636		$	727,068		$	714,450		$	693,559		$	728,897
Paycheck Protection Program (PPP)	17,827			31,855			78,624			145,942			290,028
Real estate:
Commercial real estate (including multi-family residential)	2,407,039			2,265,155			2,197,502			2,104,621			2,073,521
Commercial real estate construction and land development	513,248			450,694			453,473			439,125			382,610
1-4 family residential (including home equity)	699,636			682,066			669,306			685,071			683,919
Residential construction	183,563			155,017			136,760			117,901			104,638
Consumer and other	37,963			36,978			33,399			34,267			25,856
Total loans	$	4,591,912		$	4,348,833		$	4,283,514		$	4,220,486		$	4,289,469

Deposits:
Interest-bearing demand accounts	$	956,920		$	1,016,381		$	1,070,855		$	869,984		$	594,959
Money market and savings	1,471,690			1,510,008			1,552,853			1,643,745			1,604,222
Certificates and other time	766,270			959,524			1,185,015			1,290,825			1,381,014
Total interest-bearing deposits	3,194,880			3,485,913			3,808,723			3,804,554			3,580,195
Noninterest-bearing deposits	2,465,839			2,394,719			2,353,604			2,243,085			2,086,683
Total deposits	$	5,660,719		$	5,880,632		$	6,162,327		$	6,047,639		$	5,666,878

Asset Quality:
Nonaccrual loans	$	21,551		$	28,225		$	26,275		$	24,127		$	28,369
Accruing loans 90 or more days past due	—			—			—			—			—
Total nonperforming loans	21,551			28,225			26,275			24,127			28,369
Other real estate	—			—			—			—			1,397
Total nonperforming assets	$	21,551		$	28,225		$	26,275		$	24,127		$	29,766

Net (recoveries) charge-offs	$	(245)		$	571		$	317		$	1,353		$	450

Nonaccrual loans:
Commercial and industrial	$	6,916		$	9,145		$	7,809		$	8,358		$	10,247
Real estate:
Commercial real estate (including multi-family residential)	10,392			14,409			15,259			12,639			14,629
Commercial real estate construction and land development	241			1,511			—			63			53
1-4 family residential (including home equity)	3,854			3,040			3,065			2,875			3,224
Residential construction	—			—			—			—			—
Consumer and other	148			120			142			192			216
Total nonaccrual loans	$	21,551		$	28,225		$	26,275		$	24,127		$	28,369

Asset Quality Ratios:
Nonperforming assets to total assets	0.32		%	0.42		%	0.37		%	0.34		%	0.44		%
Nonperforming loans to total loans	0.47		%	0.65		%	0.61		%	0.57		%	0.66		%
Allowance for credit losses on loans to nonperforming loans	241.97		%	178.01		%	187.31		%	198.70		%	177.98		%
Allowance for credit losses on loans to total loans	1.14		%	1.16		%	1.15		%	1.14		%	1.18		%
Net (recoveries) charge-offs to average loans (annualized)	(0.02		%)	0.05		%	0.03		%	0.13		%	0.04		%

Allegiance Bancshares, Inc.

GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures

(Unaudited)

Allegiance’s management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Allegiance believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing Allegiance’s performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, Allegiance reviews pre-tax, pre-provision income, adjusted pre-tax, pre-provision income, adjusted efficiency ratio, tangible book value per share, return on average tangible equity and the ratio of tangible equity to tangible assets for internal planning and forecasting purposes. Allegiance has included in this Earnings Release information relating to these non-GAAP financial measures for the applicable periods presented. These non-GAAP measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which Allegiance calculates the non-GAAP financial measures may differ from that of other companies reporting measures with similar names.


	Three Months Ended															Nine Months Ended
	2022									2021						2022			2021
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
	(Dollars and share amounts in thousands, except per share data)
Net income	$	14,286		$	16,437		$	18,657		$	21,558		$	19,060		$	49,380		$	59,995
Add: Provision for credit losses	1,962			2,143			1,814			(2,577)			2,295			5,919			255
Add: Provision for income taxes	3,406			3,702			4,202			4,833			4,614			11,310			13,508
Pre-tax, pre-provision income	$	19,654		$	22,282		$	24,673		$	23,814		$	25,969		$	66,609		$	73,758

Pre-tax, pre-provision income	$	19,654		$	22,282		$	24,673		$	23,814		$	25,969		$	66,609		$	73,758
Add: Acquisition and merger-related expenses	10,551			1,667			451			1,408			603			12,669			603
Adjusted pre-tax, pre-provision income	$	30,205		$	23,949		$	25,124		$	25,222		$	26,572		$	79,278		$	74,361








Total noninterest expense	$	44,031		$	37,904		$	34,517		$	36,744		$	34,296		$	116,452		$	102,810
Acquisition and merger-related expenses	10,551			1,667			451			1,408			603			12,669			603
Net interest income	60,690			57,482			55,172			58,104			58,166			173,344			170,460
Total noninterest income	2,995			2,704			4,018			2,454			2,099			9,717			6,108
Gain on sale of securities	42			(17)			—			—			—			25			49
Adjusted efficiency ratio(A)	52.61%			60.19%			57.55%			58.35%			55.91%			56.69%			57.87%

Total shareholders' equity	$	656,302		$	705,329		$	751,940		$	816,468		$	798,592		$	656,302		$	798,592
Less: Goodwill and core deposit intangibles, net	236,048			236,798			237,549			238,300			239,124			236,048			239,124
Tangible shareholders’ equity	$	420,254		$	468,531		$	514,391		$	578,168		$	559,468		$	420,254		$	559,468

Shares outstanding at end of period	19,837			20,154			20,378			20,337			20,218			19,837			20,218

Tangible book value per share	$	21.19		$	23.25		$	25.24		$	28.43		$	27.67		$	21.19		$	27.67

Net income	$	14,286		$	16,437		$	18,657		$	21,558		$	19,060		$	49,380		$	59,995

Average shareholders' equity	$	717,436		$	744,126		$	804,704		$	806,941		$	800,146		$	755,102		$	778,991
Less: Average goodwill and core deposit intangibles, net	236,399			237,153			237,925			238,700			239,497			237,153			240,325
Average tangible shareholders’ equity	$	481,037		$	506,973		$	566,779		$	568,241		$	560,649		$	517,949		$	538,666

Return on average tangible equity(B)	11.78		%	13.00		%	13.35		%	15.05		%	13.49		%	12.75		%	14.89		%

Total assets	$	6,730,342		$	6,731,764		$	7,149,363		$	7,104,954		$	6,759,761		$	6,730,342		$	6,759,761
Less: Goodwill and core deposit intangibles, net	236,048			236,798			237,549			238,300			239,124			236,048			239,124
Tangible assets	$	6,494,294		$	6,494,966		$	6,911,814		$	6,866,654		$	6,520,637		$	6,494,294		$	6,520,637

Tangible equity to tangible assets	6.47		%	7.21		%	7.44		%	8.42		%	8.58		%	6.47		%	8.58		%

(A)Represents total noninterest expense, excluding acquisition and merger-related expenses, divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for credit losses are not part of this calculation.

(B)Interim periods annualized.

Third Quarter 2022 Earnings Presentation Exhibit 99.2

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 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include, but are not limited to, statements about the benefits of the merger of CBTX, Inc. (now Stellar Bancorp, Inc.)(the “Company”) and Allegiance Bancshares, Inc. (“Allegiance”), including future financial performance and operating results, the combined company’s plans, business and growth strategies, objectives, expectations and intentions, and other statements that are not historical facts, including 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. Forward-looking statements may be identified by terminology such as “may,” “will,” “should,” “could,” “scheduled,” “plans,” “intends,” “projects,” “anticipates,” “expects,” “believes,” “estimates,” “potential,” “would,” or “continue” or negatives of such terms or other comparable terminology. All forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Stellar to differ materially from any results expressed or implied by such forward-looking statements. Such factors include, among others: (1) the risk that the cost savings and any revenue synergies from the merger may not be fully realized or may take longer than anticipated to be realized; (2) disruption to our business as a result of the merger; (3) the risk that the integration of our operations will be materially delayed or will be more costly or difficult than we expected or that we are otherwise unable to successfully integrate our legacy businesses; (4) the amount of the costs, fees, expenses and charges related to the merger; (5) reputational risk and the reaction of our customers, suppliers, employees or other business partners to the merger; (6) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (7) the dilution caused by Stellar’s issuance of additional shares of its common stock in the merger; (8) general competitive, economic, political and market conditions; and (9) other factors that may affect future results of Stellar including changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates and capital markets; inflation; customer borrowing, repayment, investment and deposit practices; the impact, extent and timing of technological changes; capital management activities; and other actions of the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Texas Department of Banking and legislative and regulatory actions and reforms. Additional factors which could affect the Company’s future results can be found in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K and the Joint Proxy Statement/Prospectus regarding the merger that CBTX filed with the SEC on April 7, 2022 pursuant to Rule 424(b)(3) and Allegiance’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, in each case filed with the SEC and available on the SEC’s website at https:// www.sec.gov. We disclaim any obligation and do not intend to update or revise any forward-looking statements contained in this communication, which speak only as of the date hereof, whether as a result of new information, future events or otherwise, except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. GAAP Reconciliation of Non-GAAP Financial Measures The Company’s management uses certain non-GAAP (generally accepted accounting principles) financial measures to evaluate its performance. The Company believes that these non- GAAP financial measures provide meaningful supplemental information regarding its performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing the Company’s performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, the Company reviews pre-tax, pre-provision income, adjusted pre-tax, pre-provision income, adjusted pre-tax, pre-provision earnings per share, diluted, adjusted efficiency ratio, adjusted noninterest expense / average assets and adjusted pre-tax, pre-provision return on average assets for internal planning and forecasting purposes. The Company has included in this presentation information relating to these non-GAAP financial measures for the applicable periods presented. These non-GAAP measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures may differ from that of other companies reporting measures with similar names.

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 the combined company renamed Stellar Bancorp, Inc. (NASDAQ: STEL) − Principal banking subsidiary to be renamed Stellar Bank upon system conversion Source: S&P Capital IQ Pro.  Positioned to drive significant value creation Combination of the Houston region’s two largest regionally-focused banks

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 $188.0 Total Assets Houston Region(1) Percent of Company Name ($B) Deposits ($B) Deposits (%) JPMorgan $3,841 $188.0 8.8% Wells Fargo 1,881 34.3 2.3% BofA 3,112 29.7 1.5% Zions 87.8 14.1 17.8% PNC 541 11.9 2.7% Stellar 11.1 9.5 98.1% Frost 51.8 8.4 18.2% Capital One 440 8.0 2.0% Cadence 47.7 7.6 18.9% Prosperity 37.4 6.8 22.6% Allegiance 6.7 5.9 100.0% Woodforest 9.6 5.9 70.2% Comerica 86.9 3.9 5.0% CBTX 4.3 3.6 95.1% Texas Capital 32.3 2.9 11.1% Truist 545 2.9 0.7% Stell r Allegianc CBT Note: Deposit market share based on FDIC data as of June 30, 2022; Stellar deposits in the Houston Region are combined deposits as of June 30, 2022. (1) Houston Region defined as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur MSAs. Source: S&P Capital IQ Pro; Excludes non-retail branches.

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 the #1 most diverse city in the U.S. based on socioeconomic factors The Woodlands, a Houston suburb, is #1 on the list of America’s 50 Best Places to Live Houston is home to the Texas Medical Center, which has 10 million patient encounters each year During the pandemic, Houston saw the second highest growth in jobs available for software and IT workers 5 Median Home Price ($000s) Median Household Income Source: S&P Capital IQ Pro as of June 30, 2022; Texas Medical Center; Houston.org; Wallet Hub; ABC News; Axios. (1.6%) (2.2%) (0.3%) 7.3% 5.9% 5.8% 2.8% New York MSA Los Angeles MSA Chicago MSA Dallas MSA Houston MSA Texas USA $597.6 $825.7 $370.1 $408.2 $357.2 $344.9 $440.3 New York MSA Los Angeles MSA Chicago MSA Dallas MSA Houston MSA Texas USA $92,717 $86,804 $83,335 $81,205 $74,859 $70,957 $72,465 New York MSA Los Angeles MSA Chicago MSA Dallas MSA Houston MSA Texas USA

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 Holdings Texas Capital Comerica Zions Prosperity Hilltop Holdings First Financial Bankshares Cadence Bank Wells Fargo PNC Financial Strong Combined Market Share Growth In Competitive Texas Markets 6 Pure Play Texas Banks Money Center Banks Other Significant Texas Banks 2022 Deposit-Weighted Market Share 11.1% 5-Year Change In Deposit-Weighted Market Share by County (‘17 - ‘22 Change in bps) Source: S&P Capital IQ Pro. Note: Deposit data as of June 30, combined for M&A completed over or pending in last 5 years. 41.4% 17.1% 29.1% 7.7% 1.6% 5.1% 1.9% 3.8% 14.8% 7.8% 37.9% 8.1% 11.8% 4.4% Stellar

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 periods presented. (3) Represents total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for credit losses are not part of this calculation.. (4) Represents total noninterest expense divided by the sum of net interest income plus noninterest income. Allegiance Bancshares, Inc. CBTX, Inc. • Loans held for investment grew 22.4% (annualized), or $243.1 million, during the third quarter 2022 to $4.59 billion • Net interest income increased 5.6%, or $3.2 million, compared to the second quarter of 2022 • Tax equivalent net interest margin increased 32 basis points to 3.85% compared to the second quarter of 2022 • Loans held for investment grew 12.3% (annualized), or $93.5 million, during the third quarter 2022 to $3.13 billion • Net interest income increased 23.3%, or $8.1 million, compared to the second quarter of 2022 • Tax equivalent net interest margin increased 76 basis points to 4.25% compared to the second quarter of 2022 (dollars in thousands, except per share) 3Q 2022 2Q 2022 Net income 14,286$ 16,437$ Pre-tax, pre provision income (PTPP)(1) 19,654$ 22,282$ Earnings per share, diluted 0.71$ 0.80$ Efficiency ratio(3) 69.18% 62.96% Acquisition and merger-related expenses 10,551$ 1,667$ Adjusted pre-tax, pre provision income(1)(2) 30,205$ 23,949$ Adjusted eff iciency ratio(1)(2) 52.61% 60.19% Loan / Deposit 81.12% 73.95% (dollars in thousands, except per share) 3Q 2022 2Q 2022 Net income 12,747$ 11,707$ Pre-tax, pre provision income (PTPP)(1) 17,140$ 14,660$ Earnings per share, diluted 0.52$ 0.48$ Efficiency ratio(4) 63.11% 61.84% Acquisition and merger-related expenses 5,897$ 1,100$ Adjusted pre-tax, pre provision income(1)(2) 23,037$ 15,760$ Adjusted eff iciency ratio(1)(2) 50.42% 58.98% Loan / Deposit 83.96% 80.73%

$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 $23.0 $1.94 $2.27 $2.57 $2.07 $1.41 $0.51 $0.70 $0.94 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $0 $15 $30 $45 $60 $75 2017 2018 2019 2020 2021 Q3-21 Q3-22 PTPP Earnings per Share PT PP In co m e ($ M ) $107.8 $124.7 $136.0 $128.6 $126.2 $31.2 $43.0 4.06% 4.35% 4.42% 3.73% 3.31% 3.22% 4.25% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% $0 $25 $50 $75 $100 $125 $150 $175 2017 2018 2019 2020 2021 Q3-21 Q3-22 N et Interest M argin N et In te re st In co m e ($ M ) $103.7 $128.6 $179.5 $202.7 $228.6 $58.2 $60.7 4.34% 4.27% 4.22% 4.08% 3.90% 3.90% 3.85% 3.00% 3.50% 4.00% 4.50% 5.00% $0 $50 $100 $150 $200 $250 2017 2018 2019 2020 2021 Q3-21 Q3-22 N et Interest M argin N et In te re st In co m e ($ M ) Historical Standalone Profitability 8 Allegiance Bancshares, Inc. CBTX, Inc. Net Interest Income ($M) and Net Interest Margin (tax equivalent) Net Interest Income ($M) and Net Interest Margin (tax equivalent) PTPP Income ($M) and PTPP Earnings per Share(1) PTPP Income ($M) and PTPP Earnings per Share(1) (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 periods presented. (3) Includes payments of $8.0 million in civil money penalties to resolve BSA/AML compliance matters. (4) Annualized. (5) Allegiance Bancshares, Inc. net interest margin excluding Paycheck Protection Program (PPP) loans was 3.57%. (6) CBTX, Inc. net interest margin excluding PPP was 3.07%. Adjusted PTPP Income(1)(2) Adjusted PTPP EPS(1)(2) Adjusted PTPP Income(1)(2) Adjusted PTPP EPS(1)(2) (5)(4) (4)(4) (6) (4) (3)

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 2021 Q3-21 Q3-22 Historical Standalone Profitability (Continued) 9 Efficiency Ratio Efficiency Ratio Noninterest Expense / Average Assets Noninterest Expense / Average Assets 52.6% 50.4% Allegiance Bancshares, Inc. CBTX, Inc. (3) (3) Adjusted(1)(2)Adjusted(1)(2) 1.98% 2.13% Adjusted(1)(2)Adjusted(1)(2) (4) (4) (4) (4) (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 periods presented. (3) Includes payments of $8.0 million in civil money penalties to resolve BSA/AML compliance matters. (4) Annualized.

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) 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 periods presented. (3) Includes payments of $8.0 million in civil money penalties to resolve BSA/AML compliance matters. (4) Annualized. Allegiance Bancshares, Inc. CBTX, Inc. Return on Average Assets Return on Average Assets Pre-tax, pre-provision ROAA(1) Pre-tax, pre-provision ROAA(1) (3) (3) Adjusted(1)(2)Adjusted(1)(2) 1.47% 1.47% 1.50% 1.48% 1.49% 1.55% 1.16% 1.78% 2017 2018 2019 2020 2021 Q3-21 Q3-22 (4) (4) (4) (4) (4) (4) (4) (4)

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% 0.25% 0.23% 0.25% 0.36% 0.44% 0.39% 0.36% 0.32% 0.34% 0.48% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 0.15% 0.14% 0.13% 0.12% 0.13% 0.17% 0.17% 0.16% 0.15% 0.15% 0.13% 0.17% Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Yield and Cost Analysis 11 Allegiance Bancshares, Inc. CBTX, Inc. Yield and Net Interest Margin(1) Yield and Net Interest Margin(1) Cost of Funds Cost of Funds Yield on Loans Net Interest Margin (Tax Equivalent) Yield on Loans Net Interest Margin (Tax Equivalent) Cost of Deposits Cost of Funds Cost of Deposits Cost of Funds Yield on Loans Ex. PPP Yield on Loans Ex. PPP (1) Annualized.

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 Net Charge Offs (Recoveries) / Average Loans (1) Excludes loans held for sale. (2) Annualized. Allegiance Bancshares, Inc. CBTX, Inc. Nonperforming Loans / Loans Nonperforming Loans / Loans(1) Net Charge Offs (Recoveries) / Average Loans (2) (2)

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 Quality (Continued) 13 Allowance / Nonperforming Loans (1) Excludes loans held for sale. (2) Not to scale. Allegiance Bancshares, Inc. CBTX, Inc. Allowance / Loans Allowance / Loans(1) Allowance / Nonperforming Loans(1) (2)

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, Inc. CBTX, Inc. Stellar Bancorp, Inc. – Combined(1) ($M) (%) 1-4 Family Residential RE 700$ 15.2 Construction & Dev. 697 15.2 Commercial RE(2) 1,118 24.3 Owner-Occupied CRE 1,289 28.1 Commercial & Industrial 750 16.4 Consumer & Other 38 0.8 Total 4,592$ 100.0 Yield on Loans (%) 5.17 ($M) (%) 1-4 Family Residential RE 288$ 9.2 Construction & Dev. 508 16.2 Commercial RE(2) 1,074 34.2 Owner-Occupied CRE 539 17.2 Commercial & Industrial 568 18.1 Consumer & Other 159 5.1 Total 3,136$ 100.0 Yield on Loans (%) 5.04 ($M) (%) 1-4 Family Residential RE 988$ 12.8 Construction & Dev. 1,205 15.6 Commercial RE(2) 2,192 28.4 Owner-Occupied CRE 1,828 23.7 Commercial & Industrial 1,318 17.0 Consumer & Other 197 2.5 Total 7,728$ 100.0 Yield on Loans (%) 5.11 1-4 Fam. 15.2% C&D 15.2% CRE 24.3% OO CRE 28.1% C&I 16.4% Cons. & Other 0.8% 1-4 Fam. 9.2% C&D 16.2% CRE 34.2% OO CRE 17.2% C&I 18.1% Cons. & Other 5.1% 1-4 Fam. 12.8% C&D 15.6% CRE 28.4% OO CRE 23.7% C&I 17.0% Cons. & Other 2.5%

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-Bearing Demand 957 16.9 Savings and MMDA 1,472 26.0 Total CDs 766 13.5 Total 5,661$ 100.0 Loans / Deposits (%) 81.1 Cost of Deposits (%) 0.36 ($M) (%) Noninterest-Bearing 1,780$ 47.8 Interest-Bearing Demand 416 11.2 Savings and MMDA 1,274 34.2 Total CDs 254 6.8 Total 3,724$ 100.0 Loans / Deposits (%) 84.0 Cost of Deposits (%) 0.17 ($M) (%) Noninterest-Bearing 4,246$ 45.2 Interest-Bearing Demand 1,373 14.6 Savings and MMDA 2,746 29.3 Total CDs 1,020 10.9 Total 9,385$ 100.0 Loans / Deposits (%) 82.2 Cost of Deposits (%) 0.28 (1) For illustrative purposes only based on balances as of September 30, 2022. Excludes the impact of acquisition related adjustments and purchase accounting.

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 2,827 Pre-tax, pre-provision income 19,654$ 22,282$ 17,140$ 14,660$ Pre-tax, pre-provision income 19,654$ 22,282$ 17,140$ 14,660$ (+) Acquisition and merger-related expenses 10,551 1,667 5,897 1,100 Adjusted pre-tax, pre-provision income 30,205$ 23,949$ 23,037$ 15,760$ Weighted average shares, diluted 20,114 20,530 24,464 24,593 Adjusted pre-tax, pre-provision earnings per share, diluted 1.50$ 1.17$ 0.94$ 0.64$ Total noninterest expense 44,031$ 37,904$ 29,321$ 23,758$ Acquisition and merger-related expenses 10,551 1,667 5,897 1,100 Net interest income 60,690 57,482 43,012 34,872 Total noninterest income 2,995 2,704 3,449 3,546 Gain on sale of securities 42 (17) - - Adjusted efficiency ratio 52.61% 60.19% 50.42% 58.98% Noninterest expense 44,031$ 37,904$ 29,321$ 23,758$ (-) Acquisition and merger-related expenses 10,551 1,667 5,897 1,100 Adjusted noninterest expense 33,480$ 36,237$ 23,424$ 22,658$ Average assets 6,717,886$ 7,019,299$ 4,355,800$ 4,350,546$ Adjusted noninterest expense / average assets 1.98% 2.07% 2.13% 2.09% Adjusted pre-tax, pre-provision income 30,205$ 23,949$ 23,037$ 15,760$ Average assets 6,717,886$ 7,019,299$ 4,355,800$ 4,350,546$ Adjusted pre-tax, pre-provision return on average assets 1.78% 1.37% 2.10% 1.45% (Dollars and shares amounts in thousands, except per share data)

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 (+) Provision for income taxes 8,747 7,948 13,427 10,437 18,341 4,614 3,406 Pre-tax, pre-provision income 39,567$ 49,505$ 72,325$ 83,345$ 97,572$ 25,969$ 19,654$ Weighted average shares, diluted 13,458 15,773 21,424 20,546 20,355 20,411 20,114 Pre-tax, pre-provision earnings per share, diluted 2.94$ 3.14$ 3.38$ 4.06$ 4.79$ 1.27$ 0.98$ Pre-tax, pre-provision income 39,567$ 49,505$ 72,325$ 83,345$ 97,572$ 25,969$ 19,654$ Average assets 2,699,226$ 3,365,160$ 4,828,634$ 5,637,659$ 6,559,711$ 6,627,454$ 6,717,886$ Pre-tax, pre-provision return on average assets 1.47% 1.47% 1.50% 1.48% 1.49% 1.55% 1.16% Three Months Ended 2017 2018 2019 2020 2021 9/30/2021 9/30/2022 Net income 27,571$ 47,289$ 50,517$ 26,361$ 35,598$ 14,421$ 12,747$ (+) Provision for credit losses (338) (1,756) 2,385 18,892 (10,773) (4,895) 1,012 (+) Provision for income taxes 16,453 11,364 11,571 6,034 9,920 2,913 3,381 Pre-tax, pre-provision income 43,686$ 56,897$ 64,473$ 51,287$ 34,745$ 12,439$ 17,140$ Weighted average shares, diluted 22,573 25,018 25,053 24,803 24,572 24,544 24,464 Pre-tax, pre-provision earnings per share, diluted 1.94$ 2.27$ 2.57$ 2.07$ 1.41$ 0.51$ 0.70$ Pre-tax, pre-provision income 43,686$ 56,897$ 64,473$ 51,287$ 34,745$ 12,439$ 17,140$ Average assets 2,973,747$ 3,156,142$ 3,374,665$ 3,758,262$ 4,133,644$ 4,174,945$ 4,355,800$ Pre-tax, pre-provision return on average assets 1.47% 1.80% 1.91% 1.36% 0.84% 1.19% 1.56% Years Ended CBTX, Inc. (Dollars and shares amounts in thousands, except per share data)

NASDAQ: STEL 18


Texas	001-38280	20-8339782
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)


£			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

£			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

£			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

£			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Exhibit Number			Description of Exhibit
99.1			Press Release issued by Stellar Banc orp , Inc. dated October 2 8 , 2022
99.2			Third Quarter 2022 Earnings Presentation dated October 2 8 , 2022
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)


	STELLAR BANCORP, INC.

Date: October 28, 2022	By:	/s/ Paul P. Egge
		Paul P. Egge
		Chief Financial Officer