abtx-20220728

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): July 28, 2022

Allegiance Bancshares, Inc.

(Exact Name of Registrant as Specified in Charter)


Texas	001-37585	26-3564100
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

8847 West Sam Houston Parkway N., Suite 200, Houston, Texas 77040

(Address of Principal Executive Offices) (Zip Code)

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


£			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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

ABTX

NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company £

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Item 2.02. Results of Operations and Financial Condition.

On July 29, 2022, Allegiance Bancshares, Inc., the holding company of Allegiance Bank, issued a press release announcing its financial results for the second quarter 2022. A copy of the press release, as well as a copy of the accompanying earnings presentation, are furnished as Exhibit 99.1 and Exhibit 99.2 hereto, respectively, and incorporated herein by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02, Exhibit 99.1 and Exhibit 99.2 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 8.01. Other Events.

Dividend Declaration

On July 28, 2022, the Board of Directors of Allegiance declared a cash dividend of $0.14 per share to be paid on September 15, 2022 to all shareholders of record as of August 31, 2022. The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. The following are furnished as exhibits to this Current Report on Form 8-K:


Exhibit Number			Description of Exhibit
99.1			Press Release issued by Allegiance Bancshares, Inc. dated July 29, 2022
99.2			Second Quarter 2022 Earnings Presentation dated July 29, 2022
104			Cover Page Interactive Data File (embedded within the Inline XBRL document)

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 proposed merger of Allegiance Bancshares, Inc. (“Allegiance”) and CBTX, Inc. (“CBTX”), including future financial and operating results, statements related to the expected timing of the completion of the merger, the combined company's plans, business and growth strategies, objectives, expectations and intentions, and other statements that are not historical facts, including 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," "scheduled," "plans," "intends," "anticipates," "expects," "believes," "estimates," "potential," or "continue" or negatives of such terms or other comparable terminology.

All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Allegiance or CBTX 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 the parties' businesses as a result of the announcement and pendency of the merger; (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (4) the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; (5) the amount of the costs, fees, expenses and charges related to the merger; (6) the ability by each of Allegiance and CBTX to obtain required regulatory approvals of the merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); (7) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (8) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the merger; (9) the possibility that

the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) the dilution caused by CBTX's issuance of additional shares of its common stock in the merger; (11) general competitive, economic, political and market conditions; and (12) other factors that may affect future results of Allegiance and CBTX 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, Texas Department of Banking and Office of the Comptroller of the Currency and legislative and regulatory actions and reforms.

Additional factors which could affect future results of Allegiance and CBTX can be found in Allegiance's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and CBTX'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. Each of Allegiance and CBTX disclaims any obligation and does 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.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	Allegiance Bancshares, Inc.

Date: July 29, 2022	By:	/s/ Steven F. Retzloff
		Steven F. Retzloff
		Chief Executive Officer

Allegiance Bancshares, Inc.

8847 West Sam Houston Parkway N., Suite 200

Houston, Texas 77040

ir@allegiancebank.com

ALLEGIANCE BANCSHARES, INC. REPORTS

SECOND QUARTER 2022 RESULTS

•Core loan growth of $112.1 million, or 10.7% (annualized), to $4.32 billion as of June 30, 2022 compared to $4.20 billion as of March 31, 2022 and $355.4 million, or 9.0%, compared to June 30, 2021; core loans exclude Paycheck Protection Program (PPP) loans

•Net income and diluted earnings per share of $16.4 million and $0.80 for the second quarter 2022, respectively

•Board declared quarterly dividend of $0.14 per share of common stock

HOUSTON, July 29, 2022 - Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the holding company of Allegiance Bank (the "Bank"), today reported net income of $16.4 million and diluted earnings per share of $0.80 for the second quarter 2022 compared to net income of $22.9 million and diluted earnings per share of $1.12 for the second quarter 2021. Net income for the six months ended June 30, 2022 was $35.1 million, or $1.71 per diluted share, compared to $40.9 million, or $2.01 per diluted share, for the six months ended June 30, 2021. The second quarter and six months ended June 30, 2022 results reflect the decreased impact of PPP loan revenue and included a normalized provision for credit losses compared to the recapture of provision for credit losses during the comparable periods in 2021. Additionally, noninterest expenses were elevated due to acquisition and merger-related expenses related to the pending merger of equals with CBTX, Inc. (“CBTX”) and increased operational losses recorded during the three and six months ended June 30, 2022.

“We are pleased with the overall results for the second quarter as we reported another record quarter of loan originations as core loans grew 10.7% (annualized),” said Steve Retzloff, Allegiance’s Chief Executive Officer. “Our team remains focused on delivering excellent customer service and our commitment to the communities we serve,” continued Retzloff.

“We continue to make significant progress developing the foundation for our pending merger of equals with CBTX. We are excited to have received approval from the Federal Deposit Insurance Corporation and the Texas Department of Banking along with the shareholders of both companies who supported the merger at their respective meetings during the quarter and look forward to continuing to drive and deliver strong performance results for them as a combined institution,” concluded Retzloff.

Second Quarter 2022 Results

Net interest income before the provision for credit losses in the second quarter 2022 increased $886 thousand, or 1.6%, to $57.5 million from $56.6 million for the second quarter 2021 and increased $2.3 million, or 4.2%, from $55.2 million for the first quarter 2022. These increases were primarily due to increased interest income on securities partially offset by decreased interest income on loans due to decreased impact of loans within the Small Business Administration Paycheck Protection Program (PPP) and changes in market interest rates. The net interest margin on a tax equivalent basis decreased 49 basis points to 3.53% for the second quarter 2022 from 4.02% for the second quarter 2021 and increased 23 basis points from 3.30% for the first quarter 2022. The decrease in the margin over the prior year was primarily due to the decrease in the average yield on interest-earning assets, driven by decreased PPP revenue recognition and changes in the composition of earnings assets, partially offset by the decrease in funding costs. PPP revenue of $1.4 million was recognized during the three months ended June 30, 2022 compared to the $6.4 million recognized for the three months ended June 30, 2021. The increase in the margin over the prior quarter was primarily due to changes in market interest rates and the composition of earnings assets.

Noninterest income for the second quarter 2022 was $2.7 million, an increase of $431 thousand, or 19.0%, compared to $2.3 million for the second quarter 2021 and a decrease of $1.3 million, or 32.7%, compared to $4.0 million for the first quarter 2022. First quarter 2022 other noninterest income included $1.3 million in income from Small Business Investment Company investments.

Noninterest expense for the second quarter 2022 increased $4.3 million, or 12.8%, to $37.9 million from $33.6 million for the second quarter 2021 and increased $3.4 million, or 9.8%, compared to the first quarter of 2022. These increases in noninterest expense over the prior periods were primarily due to acquisition and merger-related expenses associated with the pending merger with CBTX along with increased operational losses recorded during the second quarter 2022.

In the second quarter 2022, Allegiance’s efficiency ratio increased to 62.96% compared to 57.07% for the second quarter 2021 and 58.32% for the first quarter 2022. Second quarter 2022 annualized returns on average assets, average equity and average tangible equity were 0.94%, 8.86% and 13.00%, respectively, compared to 1.42%, 11.87% and 17.20% for the second quarter 2021. Annualized returns on average assets, average equity and average tangible equity for the first quarter 2022 were 1.04%, 9.40% and 13.35%, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 11.

Six Months Ended June 30, 2022 Results

Net interest income before provision for credit losses for the six months ended June 30, 2022 increased $360 thousand, or 0.3%, to $112.7 million from $112.3 million for the six months ended June 30, 2021 primarily due to lower costs related to interest-bearing liabilities and higher interest income from securities and deposits in other financial institutions, partially offset by the decreased impact of PPP loan revenue. The net interest margin on a tax equivalent basis decreased 69 basis points to 3.41% for the six months ended June 30, 2022 from 4.10% for the six months ended June 30, 2021. The decrease in the margin over the prior year was primarily due to the decrease in the average yield on interest-earning assets, driven by decreased PPP revenue recognition and changes in the composition of earnings assets, partially offset by decreased funding costs. PPP revenue of $4.0 million was recognized during the six months ended June 30, 2022 compared to the $13.3 million recognized for the same period in 2021.

Noninterest income for the six months ended June 30, 2022 was $6.7 million, an increase of $2.7 million, or 67.7%, compared to $4.0 million for the six months ended June 30, 2021 due primarily to $1.3 million in income from Small Business Investment Company investments along with increased transactional fee income.

Noninterest expense for the six months ended June 30, 2022 increased $3.9 million, or 5.7%, to $72.4 million from $68.5 million for the six months ended June 30, 2021. The increase in noninterest expense over the six months ended June 30, 2021 was primarily due to acquisition and merger-related expenses associated with the pending merger with CBTX and increased operational losses recorded during 2022.

Allegiance’s efficiency ratio increased to 60.66% for the six months ended June 30, 2022 from 58.93% for the six months ended June 30, 2021. For the six months ended June 30, 2022, returns on average assets, average equity and average tangible equity were 0.99%, 9.14% and 13.19%, respectively, compared to 1.30%, 10.75% and 15.65%, respectively, for the six months ended June 30, 2021. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 11.

Total assets at June 30, 2022 increased $223.1 million, or 3.4%, to $6.73 billion compared to $6.51 billion at June 30, 2021 and decreased $417.6 million, or 23.4% (annualized), compared to $7.15 billion at March 31, 2022.

Total loans at June 30, 2022 decreased $111.9 million, or 2.5%, to $4.35 billion compared to $4.46 billion at June 30, 2021, primarily due to paydowns on PPP loans partially offset by organic loan growth, and increased $65.3 million, or 6.1% (annualized) compared to $4.28 billion at March 31, 2022 due to the increase in organic core loans. Core loans, which exclude PPP loans, increased $355.4 million, or 9.0%, to $4.32 billion at June 30, 2022 from $3.96 billion at June 30, 2021 and increased $112.1 million, or 10.7% (annualized), from $4.20 billion at March 31, 2022.

Deposits at June 30, 2022 increased $447.3 million, or 8.2%, to $5.88 billion compared to $5.43 billion at June 30, 2021 and decreased $281.7 million, or 18.3% (annualized), compared to $6.16 billion at March 31, 2022.

Nonperforming assets totaled $28.2 million, or 0.42% of total assets, at June 30, 2022 compared to $38.0 million, or 0.58% of total assets, at June 30, 2021 and $26.3 million, or 0.37% of total assets at March 31, 2022. The allowance for credit losses on loans as a percentage of total loans was 1.16% at June 30, 2022, 1.11% at June 30, 2021 and 1.15% at March 31, 2022.

The provision for credit losses for the second quarter 2022 was $2.1 million compared to the recapture of provision for credit losses of $2.7 million for the second quarter 2021 and the provision for credit losses of $1.8 million for the first quarter 2022.

Second quarter 2022 net charge-offs were $571 thousand, or 0.05% (annualized) of average loans, an increase of $409 thousand from net charge-offs of $162 thousand, or 0.01% (annualized) of average loans, for the second quarter 2021 and an increase of $254 thousand from $317 thousand, or 0.03% (annualized) of average loans, for the first quarter 2022.

The Board of Directors of Allegiance declared a cash dividend on July 28, 2022 of $0.14 per share to be paid on September 15, 2022 to all shareholders of record as of August 31, 2022. The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.

On November 8, 2021, Allegiance and CBTX jointly announced that they entered into a definitive merger agreement pursuant to which the companies will combine in an all-stock merger of equals. Under the terms of the definitive merger agreement, Allegiance shareholders will receive 1.4184 shares of CBTX, Inc. common stock for each share of Allegiance common stock they own. Following the completion of the merger, we estimate that former Allegiance shareholders will own approximately 54% and former CBTX shareholders will own approximately 46% of the combined company. The companies have received the requisite approvals from the Federal Deposit Insurance Corporation, Texas Department of Banking and both companies’ shareholders and, subject to receipt of the approval of the Board of Governors of the Federal Reserve System and the satisfaction or in some cases waiver of the closing conditions, the parties anticipate closing in the third quarter of the year.

GAAP Reconciliation of Non-GAAP Financial Measures

Allegiance’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 page 11 of this earnings release for a reconciliation of these non-GAAP financial measures.

As previously announced, Allegiance’s management team will host a conference call and webcast on Friday, July 29, 2022 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its second quarter 2022 results. Individuals and investment professionals may participate in the call by registering here. Once registered, a dial in number will be provided along with a unique PIN number. If you need assistance in obtaining a dial-in number, please contact ir@allegiancebank.com or 281-894-3200. Alternatively, a simultaneous audio-only webcast may be accessed via the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Upcoming Events. If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under News and Events, Event Calendar, Past Events.

Allegiance Bancshares, Inc.

As of June 30, 2022, Allegiance was a $6.73 billion asset Houston, Texas-based bank holding company. Through its wholly owned subsidiary, Allegiance Bank, Allegiance provides a diversified range of commercial banking services primarily to small- to medium-sized businesses and individual customers in the Houston region. Allegiance’s super-community banking strategy was designed to foster strong customer relationships while benefiting from a platform and scale that is competitive with larger local and regional banks. As of June 30, 2022, Allegiance Bank operated 26 full-service banking locations in the Houston region, which we define as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur metropolitan statistical areas, with 25 bank offices in the Houston metropolitan area and one bank office in Beaumont, just outside of the Houston metropolitan area. Visit www.allegiancebank.com for more information.

Forward-Looking Statements

These statements include, but are not limited to, statements about the benefits of the proposed merger of Allegiance and CBTX, including future financial and operating results, statements related to the expected timing of the completion of the merger, 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 subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Allegiance or CBTX 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 the parties' businesses as a result of the pendency of the merger; (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (4) the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; (5) the amount of the costs, fees, expenses and charges related to the merger; (6) the ability by each party to obtain required regulatory approvals of the merger (and the risk that such

approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); (7) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (8) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the merger; (9) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) the dilution caused by CBTX's issuance of additional shares of its common stock in the merger; (11) general competitive, economic, political and market conditions; and (12) other factors that may affect future results of Allegiance and CBTX 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, the Texas Department of Banking and Office of the Comptroller of the Currency and legislative and regulatory actions and reforms.

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	2022				2021
	June 30		March 31		December 31		September 30		June 30
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	17,547	$	26,629	$	23,961	$	23,903	$	146,397
Interest-bearing deposits at other financial institutions	275,290		672,755		733,548		879,858		564,888
Total cash and cash equivalents	292,837		699,384		757,509		903,761		711,285
Available for sale securities, at fair value	1,709,321		1,790,707		1,773,765		1,211,476		977,282
Loans held for investment	4,348,833		4,283,514		4,220,486		4,289,469		4,460,743
Less: allowance for credit losses on loans	(50,242)		(49,215)		(47,940)		(50,491)		(49,586)
Loans, net	4,298,591		4,234,299		4,172,546		4,238,978		4,411,157
Accrued interest receivable	29,882		31,505		33,392		33,523		37,075
Premises and equipment, net	58,482		62,168		63,708		65,140		65,442
Other real estate owned	—		—		—		1,397		1,397
Federal Home Loan Bank stock	4,078		9,376		9,358		8,326		8,234
Bank owned life insurance	28,170		28,374		28,240		28,101		27,976
Goodwill	223,642		223,642		223,642		223,642		223,642
Core deposit intangibles, net	13,156		13,907		14,658		15,482		16,306
Other assets	73,605		56,001		28,136		29,935		28,871
Total assets	$	6,731,764	$	7,149,363	$	7,104,954	$	6,759,761	$	6,508,667
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	2,394,719	$	2,353,604	$	2,243,085	$	2,086,683	$	1,973,042
Interest-bearing
Demand	1,016,381		1,070,855		869,984		594,959		553,874
Money market and savings	1,510,008		1,552,853		1,643,745		1,604,222		1,556,920
Certificates and other time	959,524		1,185,015		1,290,825		1,381,014		1,349,522
Total interest-bearing deposits	3,485,913		3,808,723		3,804,554		3,580,195		3,460,316
Total deposits	5,880,632		6,162,327		6,047,639		5,666,878		5,433,358
Accrued interest payable	1,500		3,086		1,753		3,296		1,940
Borrowed funds	—		89,959		89,956		139,954		139,951
Subordinated debt	109,109		108,978		108,847		108,715		108,584
Other liabilities	35,194		33,073		40,291		42,326		35,684
Total liabilities	6,026,435		6,397,423		6,288,486		5,961,169		5,719,517
SHAREHOLDERS’ EQUITY:
Common stock	20,154		20,378		20,337		20,218		20,213
Capital surplus	504,165		512,284		510,797		507,948		506,810
Retained earnings	296,477		282,896		267,092		247,966		231,333
Accumulated other comprehensive (loss) income	(115,467)		(63,618)		18,242		22,460		30,794
Total shareholders’ equity	705,329		751,940		816,468		798,592		789,150
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,731,764	$	7,149,363	$	7,104,954	$	6,759,761	$	6,508,667

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended										Six Months Ended
	2022				2021						2022		2021
	June 30		March 31		December 31		September 30		June 30		June 30		June 30
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	53,835	$	52,370	$	56,855	$	58,176	$	57,691	$	106,205	$	115,682
Securities:
Taxable	5,571		5,068		3,933		2,998		2,556		10,639		4,958
Tax-exempt	2,557		2,525		2,526		2,498		2,491		5,082		4,885
Deposits in other financial institutions	877		340		317		221		94		1,217		135
Total interest income	62,840		60,303		63,631		63,893		62,832		123,143		125,660

INTEREST EXPENSE:
Demand, money market and savings deposits	1,859		1,347		1,277		1,267		1,337		3,206		2,821
Certificates and other time deposits	1,922		2,156		2,391		2,583		2,989		4,078		6,654
Borrowed funds	114		186		434		436		469		300		1,008
Subordinated debt	1,463		1,442		1,425		1,441		1,441		2,905		2,883
Total interest expense	5,358		5,131		5,527		5,727		6,236		10,489		13,366
NET INTEREST INCOME	57,482		55,172		58,104		58,166		56,596		112,654		112,294
Provision for credit losses	2,143		1,814		(2,577)		2,295		(2,679)		3,957		(2,040)
Net interest income after provision for credit losses	55,339		53,358		60,681		55,871		59,275		108,697		114,334

NONINTEREST INCOME:
Nonsufficient funds fees	126		116		156		131		94		242		177
Service charges on deposit accounts	560		527		476		425		382		1,087		770
(Loss) gain on sale of securities	(17)		—		—		—		—		(17)		49
Loss on sale of other real estate and repossessed assets	—		—		(89)		—		—		—		(176)
Bank owned life insurance	342		133		139		125		151		475		290
Debit card and ATM card income	880		819		834		771		761		1,699		1,391
Other	813		2,423		938		647		885		3,236		1,508
Total noninterest income	2,704		4,018		2,454		2,099		2,273		6,722		4,009

NONINTEREST EXPENSE:
Salaries and employee benefits	21,864		22,728		22,918		22,335		22,472		44,592		44,924
Net occupancy and equipment	2,220		2,205		2,194		2,335		2,225		4,425		4,615
Depreciation	1,012		1,033		1,103		1,060		1,057		2,045		2,091
Data processing and software amortization	2,522		2,498		2,264		2,222		2,176		5,020		4,376
Professional fees	662		138		1,008		620		608		800		1,397
Regulatory assessments and FDIC insurance	1,256		1,261		949		883		768		2,517		1,575
Core deposit intangibles amortization	751		751		824		824		824		1,502		1,648
Communications	363		341		395		358		332		704		653
Advertising	483		462		481		481		432		945		730
Other real estate expense	65		59		69		137		229		124		342
Acquisition and merger-related expenses	1,667		451		1,408		603		—		2,118		—
Other	5,039		2,590		3,131		2,438		2,472		7,629		6,163
Total noninterest expense	37,904		34,517		36,744		34,296		33,595		72,421		68,514
INCOME BEFORE INCOME TAXES	20,139		22,859		26,391		23,674		27,953		42,998		49,829
Provision for income taxes	3,702		4,202		4,833		4,614		5,028		7,904		8,894
NET INCOME	$	16,437	$	18,657	$	21,558	$	19,060	$	22,925	$	35,094	$	40,935

EARNINGS PER SHARE
Basic	$	0.81	$	0.92	$	1.06	$	0.94	$	1.13	$	1.72	$	2.03
Diluted	$	0.80	$	0.91	$	1.06	$	0.93	$	1.12	$	1.71	$	2.01

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended															Six Months Ended
	2022						2021									2022			2021
	June 30			March 31			December 31			September 30			June 30			June 30			June 30
	(Dollars and share amounts in thousands, except per share data)
Net income	$	16,437		$	18,657		$	21,558		$	19,060		$	22,925		$	35,094		$	40,935

Earnings per share, basic	$	0.81		$	0.92		$	1.06		$	0.94		$	1.13		$	1.72		$	2.03
Earnings per share, diluted	$	0.80		$	0.91		$	1.06		$	0.93		$	1.12		$	1.71		$	2.01
Dividends per share	$	0.14		$	0.14		$	0.12		$	0.12		$	0.12		$	0.28		$	0.24

Return on average assets(A)	0.94		%	1.04		%	1.23		%	1.14		%	1.42		%	0.99		%	1.30		%
Return on average equity(A)	8.86		%	9.40		%	10.60		%	9.45		%	11.87		%	9.14		%	10.75		%
Return on average tangible equity(A)(B)	13.00		%	13.35		%	15.05		%	13.49		%	17.20		%	13.19		%	15.65		%
Net interest margin (tax equivalent)(A)(C)	3.53		%	3.30		%	3.57		%	3.90		%	4.02		%	3.41		%	4.10		%
Efficiency ratio(D)	62.96		%	58.32		%	60.68		%	56.91		%	57.07		%	60.66		%	58.93		%

Capital Ratios
Allegiance Bancshares, Inc.(Consolidated)
Equity to assets	10.48		%	10.52		%	11.49		%	11.81		%	12.12		%	10.48		%	12.12		%
Tangible equity to tangible assets(B)	7.21		%	7.44		%	8.42		%	8.58		%	8.76		%	7.21		%	8.76		%
Estimated common equity tier 1 capital	12.06		%	12.28		%	12.47		%	12.37		%	12.18		%	12.06		%	12.18		%
Estimated tier 1 risk-based capital	12.26		%	12.49		%	12.69		%	12.60		%	12.41		%	12.26		%	12.41		%
Estimated total risk-based capital	15.47		%	15.76		%	16.08		%	16.13		%	15.98		%	15.47		%	15.98		%
Estimated tier 1 leverage capital	8.65		%	8.37		%	8.53		%	8.76		%	8.56		%	8.65		%	8.56		%
Allegiance Bank
Estimated common equity tier 1 capital	12.51		%	12.48		%	12.63		%	12.81		%	13.03		%	12.51		%	13.03		%
Estimated tier 1 risk-based capital	12.51		%	12.48		%	12.63		%	12.81		%	13.03		%	12.51		%	13.03		%
Estimated total risk-based capital	14.50		%	14.50		%	14.71		%	14.98		%	15.22		%	14.50		%	15.22		%
Estimated tier 1 leverage capital	8.83		%	8.37		%	8.49		%	8.91		%	8.99		%	8.83		%	8.99		%

Other Data
Weighted average shares:
Basic	20,357			20,363			20,260			20,221			20,203			20,360			20,171
Diluted	20,530			20,526			20,423			20,411			20,386			20,522			20,359
Period end shares outstanding	20,154			20,378			20,337			20,218			20,213			20,154			20,213
Book value per share	$	35.00		$	36.90		$	40.15		$	39.50		$	39.04		$	35.00		$	39.04
Tangible book value per share(B)	$	23.25		$	25.24		$	28.43		$	27.67		$	27.17		$	23.25		$	27.17

(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, 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)


	Three Months Ended
	June 30, 2022						March 31, 2022						June 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	$	4,303,714	$	53,835	5.02	%	$	4,231,507	$	52,370	5.02	%	$	4,543,142	$	57,691	5.09	%
Securities	1,778,745		8,128		1.83	%	1,835,618		7,593		1.68	%	876,099		5,047		2.31	%
Deposits in other financial institutions and other	535,546		877		0.66	%	806,583		340		0.17	%	294,188		94		0.13	%
Total interest-earning assets	6,618,005		$	62,840	3.81	%	6,873,708		$	60,303	3.56	%	5,713,429		$	62,832	4.41	%
Allowance for credit losses on loans	(49,290)						(48,343)						(52,699)
Noninterest-earning assets	450,584						432,133						835,801
Total assets	$	7,019,299					$	7,257,498					$	6,496,531

Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	1,044,493	$	927	0.36	%	$	1,071,010	$	549	0.21	%	$	534,314	$	326	0.24	%
Money market and savings deposits	1,566,376		932		0.24	%	1,584,373		798		0.20	%	1,561,987		1,011		0.26	%
Certificates and other time deposits	1,088,664		1,922		0.71	%	1,245,180		2,156		0.70	%	1,365,881		2,989		0.88	%
Borrowed funds	50,116		114		0.91	%	89,880		186		0.84	%	144,126		469		1.31	%
Subordinated debt	109,045		1,463		5.38	%	108,913		1,442		5.37	%	108,523		1,441		5.33	%
Total interest-bearing liabilities	3,858,694		$	5,358	0.56	%	4,099,356		$	5,131	0.51	%	3,714,831		$	6,236	0.67	%

Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	2,382,230						2,312,114						1,968,714
Other liabilities	34,249						41,324						38,183
Total liabilities	6,275,173						6,452,794						5,721,728
Shareholders' equity	744,126						804,704						774,803
Total liabilities and shareholders' equity	$	7,019,299					$	7,257,498					$	6,496,531

Net interest rate spread					3.25	%					3.05	%					3.74	%

Net interest income and margin			$	57,482	3.48	%			$	55,172	3.26	%			$	56,596	3.97	%

Net interest income and net interest margin (tax equivalent)			$	58,238	3.53	%			$	55,922	3.30	%			$	57,287	4.02	%

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Six Months Ended June 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	$	4,267,810	$	106,205	5.02	%	$	4,557,016	$	115,682	5.12	%
Securities	1,807,024		15,721		1.75	%	832,884		9,843		2.38	%
Deposits in other financial institutions	670,316		1,217		0.37	%	195,768		135		0.14	%
Total interest-earning assets	6,745,150		$	123,143	3.68	%	5,585,668		$	125,660	4.54	%
Allowance for credit losses on loans	(48,819)						(53,033)
Noninterest-earning assets	441,390						798,468
Total assets	$	7,137,721					$	6,331,103

Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	1,057,678	$	1,476	0.28	%	$	496,399	$	697	0.28	%
Money market and savings deposits	1,575,325		1,730		0.22	%	1,550,620		2,124		0.28	%
Certificates and other time deposits	1,166,490		4,078		0.70	%	1,349,364		6,654		0.99	%
Borrowed funds	69,868		300		0.87	%	149,496		1,008		1.36	%
Subordinated debt	108,979		2,905		5.38	%	108,455		2,883		5.36	%
Total interest-bearing liabilities	3,978,340		$	10,489	0.53	%	3,654,334		13,366		0.74	%

Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	2,347,366						1,868,783
Other liabilities	37,767						39,748
Total liabilities	6,363,473						5,562,865
Shareholders' equity	774,248						768,238
Total liabilities and shareholders' equity	$	7,137,721					$	6,331,103

Net interest rate spread					3.15	%					3.80	%

Net interest income and margin			$	112,654	3.37	%			$	112,294	4.05	%

Net interest income and net interest margin (tax equivalent)			$	114,160	3.41	%			$	113,604	4.10	%

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)


	Three Months Ended
	2022						2021
	June 30			March 31			December 31			September 30			June 30
	(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial	$	727,068		$	714,450		$	693,559		$	728,897		$	690,867
Paycheck Protection Program (PPP)	31,855			78,624			145,942			290,028			499,207
Real estate:
Commercial real estate (including multi-family residential)	2,265,155			2,197,502			2,104,621			2,073,521			2,051,516
Commercial real estate construction and land development	450,694			453,473			439,125			382,610			371,732
1-4 family residential (including home equity)	682,066			669,306			685,071			683,919			715,119
Residential construction	155,017			136,760			117,901			104,638			111,956
Consumer and other	36,978			33,399			34,267			25,856			20,346
Total loans	$	4,348,833		$	4,283,514		$	4,220,486		$	4,289,469		$	4,460,743

Asset Quality:
Nonaccrual loans	$	28,225		$	26,275		$	24,127		$	28,369		$	36,643
Accruing loans 90 or more days past due	—			—			—			—			—
Total nonperforming loans	28,225			26,275			24,127			28,369			36,643
Other real estate	—			—			—			1,397			1,397
Total nonperforming assets	$	28,225		$	26,275		$	24,127		$	29,766		$	38,040

Net charge-offs	$	571		$	317		$	1,353		$	450		$	162

Nonaccrual loans:
Commercial and industrial	$	9,145		$	7,809		$	8,358		$	10,247		$	12,949
Real estate:
Commercial real estate (including multi-family residential)	14,409			15,259			12,639			14,629			18,123
Commercial real estate construction and land development	1,511			—			63			53			53
1-4 family residential (including home equity)	3,040			3,065			2,875			3,224			4,839
Residential construction	—			—			—			—			—
Consumer and other	120			142			192			216			679
Total nonaccrual loans	$	28,225		$	26,275		$	24,127		$	28,369		$	36,643

Asset Quality Ratios:
Nonperforming assets to total assets	0.42		%	0.37		%	0.34		%	0.44		%	0.58		%
Nonperforming loans to total loans	0.65		%	0.61		%	0.57		%	0.66		%	0.82		%
Allowance for credit losses on loans to nonperforming loans	178.01		%	187.31		%	198.70		%	177.98		%	135.32		%
Allowance for credit losses on loans to total loans	1.16		%	1.15		%	1.14		%	1.18		%	1.11		%
Net charge-offs to average loans (annualized)	0.05		%	0.03		%	0.13		%	0.04		%	0.01		%

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 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															Six Months Ended
	2022						2021									2022			2021
	June 30			March 31			December 31			September 30			June 30			June 30			June 30
	(Dollars and share amounts in thousands, except per share data)
Total shareholders' equity	$	705,329		$	751,940		$	816,468		$	798,592		$	789,150		$	705,329		$	789,150
Less: Goodwill and core deposit intangibles, net	236,798			237,549			238,300			239,124			239,948			236,798			239,948
Tangible shareholders’ equity	$	468,531		$	514,391		$	578,168		$	559,468		$	549,202		$	468,531		$	549,202

Shares outstanding at end of period	20,154			20,378			20,337			20,218			20,213			20,154			20,213

Tangible book value per share	$	23.25		$	25.24		$	28.43		$	27.67		$	27.17		$	23.25		$	27.17

Net income	$	16,437		$	18,657		$	21,558		$	19,060		$	22,925		$	35,094		$	40,935

Average shareholders' equity	$	744,126		$	804,704		$	806,941		$	800,146		$	774,803		$	774,248		$	768,238
Less: Average goodwill and core deposit intangibles, net	237,153			237,925			238,700			239,497			240,331			237,537			240,746
Average tangible shareholders’ equity	$	506,973		$	566,779		$	568,241		$	560,649		$	534,472		$	536,711		$	527,492

Return on average tangible equity(A)	13.00		%	13.35		%	15.05		%	13.49		%	17.20		%	13.19		%	15.65		%

Total assets	$	6,731,764		$	7,149,363		$	7,104,954		$	6,759,761		$	6,508,667		$	6,731,764		$	6,508,667
Less: Goodwill and core deposit intangibles, net	236,798			237,549			238,300			239,124			239,948			236,798			239,948
Tangible assets	$	6,494,966		$	6,911,814		$	6,866,654		$	6,520,637		$	6,268,719		$	6,494,966		$	6,268,719

Tangible equity to tangible assets	7.21		%	7.44		%	8.42		%	8.58		%	8.76		%	7.21		%	8.76		%

(A)Interim periods annualized.

Fixed Income Investor Presentation September 2019[Month] [Day], 2019Second Quarter 2022 Earnings Presentation cshares, Inc. Exhibit 99.2

2 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 proposed merger of Allegiance and CBTX, Inc. (“CBTX”), including future financial and operating results, statements related to the expected timing of the completion of the merger, 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 subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Allegiance or CBTX to differ materially from any results expressed or implied by such forward-looking statements. Forward-Looking Statements and Non-GAAP Financial Measures 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 the parties' businesses as a result of the pendency of the merger; (3) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (4) the risk that the integration of each party's operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party's businesses into the other's businesses; (5) the amount of the costs, fees, expenses and charges related to the merger; (6) the ability by each party to obtain required regulatory approvals of the merger (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction); (7) reputational risk and the reaction of each company's customers, suppliers, employees or other business partners to the merger; (8) the failure of the closing conditions in the merger agreement to be satisfied, or any unexpected delay in closing the merger; (9) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) the dilution caused by CBTX's issuance of additional shares of its common stock in the merger; (11) general competitive, economic, political and market conditions; and (12) other factors that may affect future results of Allegiance and CBTX 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, the Texas Department of Banking and Office of the Comptroller of the Currency and legislative and regulatory actions and reforms. Additional factors which could affect future results of Allegiance and CBTX can be found in Allegiance's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, and CBTX'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. Allegiance and CBTX 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 We use certain non-GAAP financial measures to evaluate our performance. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, we review return on average tangible common equity, the ratio of tangible equity to tangible assets and adjusted net interest margin on a tax equivalent basis for internal planning and forecasting purposes. We have 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 we calculate these non-GAAP financial measures may differ from that of other companies reporting measures with similar names. A reconciliation of the non-GAAP financial measures is in the appendix.

3 Allegiance Bancshares, Inc. Overview Franchise Footprint Holding Company for Allegiance Bank; Headquartered in Houston, Texas Company Overview Providing full-service banking services for small- to medium-sized businesses Operational History  26 full-service banking locations (at June 30, 2022) • 25 in the Houston-The Woodlands-Sugar Land MSA • 1 in the Beaumont-Port Arthur MSA, just outside of Houston  Since opening in 2007, we have completed three whole bank acquisitions and one branch transaction: • 2019: LoweryBank branch acquisition with $45.0 million in loans and $16.0 million in deposits • 2018: Post Oak Bank, N.A. (Post Oak Bancshares, Inc.) with $1.5 billion in total assets • 2015: Enterprise Bank (F&M Bancshares, Inc.) with $569.7 million in total assets • 2013: Independence Bank, N.A. with $222.1 million in total assets Financial Highlights ABTX Branch Locations (26) Galveston Houston Houston-The Woodlands-Sugar Land MSA Beaumont-Port Arthur MSA 10 10 45 45 Beaumont _____________________ (1) Please refer to the non-GAAP reconciliation in the appendix (2) Annualized as of 2Q 2022 ($ in millions) 6/30/2022 12/31/2021 12/31/2020 12/31/2019 12/31/2018 Total Assets 6,731.8$ 7,105.0$ 6,050.1$ 4,992.7$ 4,655.2$ Total Loans 4,348.8 4,220.5 4,491.8 3,915.3 3,708.3 Total Deposits 5,880.6 6,047.6 4,988.5 4,068.1 3,662.5 Total Equity 705.3 816.5 758.7 709.9 703.0 Loans/Deposits 73.95% 69.79% 90.04% 96.24% 101.25% NPAs/Assets 0.42% 0.34% 0.63% 0.74% 0.72% TCE/TA(1) 7.21% 8.42% 8.90% 9.78% 10.29% NIM (tax equivalent)(2) 3.53% 3.90% 4.08% 4.22% 4.27% ROAA(2) 0.94% 1.24% 0.81% 1.10% 1.11% ROATCE(1)(2) 13.00% 14.93% 9.33% 11.50% 11.20% Ba la nc e Sh ee t Ca pi ta l, Cr ed it & Pr of ita bi lit y

4 Financial Highlights – Second Quarter 2022  Assets of $6.73 billion, loans of $4.35 billion, deposits of $5.88 billion and shareholder's equity of $705.3 million at June 30, 2022 • Core loan growth of $355.4 million, or 7.0%, from second quarter 2021; core loans exclude Paycheck Protection Program (PPP) loans • Deposit growth of $447.3 million, or 8.2%, from the second quarter 2021 Balance Sheet  Net income of $16.4 million for the second quarter 2022 compared to $18.7 million for the first quarter 2022 and $22.9 million for the second quarter 2021  Second quarter 2022 earnings were impacted by: • Decreased PPP related revenue: $1.4 million in the second quarter 2022 compared to $2.5 million for the first quarter of 2021 and $6.4 million for the second quarter of 2021 • A $2.2 million operational loss • Acquisition and merger-related expenses of $1.7 million  Diluted EPS of $0.80 translated into an annualized return on average assets and average tangible equity(1) of 0.94% and 13.00%, respectively Profitability Net Interest Income and Margin  Net interest income increased to $57.5 million for second quarter 2022 compared to $55.2 million for the first quarter 2022 and $56.6 million for the second quarter 2021 • Interest income on securities and deposits in other financial institutions increased $1.1 million in the second quarter 2022 compared to the first quarter 2022 and $3.9 million from the second quarter 2021 • Cost of interest-bearing liabilities increased to 0.56% for the second quarter 2022 from 0.51% for the first quarter 2022 and decreased from 0.67% for the second quarter 2021 _____________________ (1) Please refer to the non-GAAP reconciliation in the appendix. Recognitions and Awards  Ranked #39 for Houston Business Journal’s second-annual Middle Market 50 awards for 2022. The list ranks the top 50 for-profit public and private mid-market companies based in Houston  Recognized in the Houston Chronicle 100 list for the most successful publicly and privately traded companies in Houston for 2022

5 Announced Merger of Equals with CBTX, Inc. Creates a premier Texas financial institution by combining two of the largest Houston-focused banks Generates significant shareholder value through materially enhanced metrics True merger-of-equals – combined management team and equal board contribution Complementary branch network, with meaningful overlap to support cost savings Shared vision, community focus, and commitment to clients and employees HOUSTON REGION Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur MSAs ABTX BRANCH (26) CBTX BRANCH (34) DALLAS AUSTIN SAN ANTONIO HOUSTON BEAUMONT Highlights

6 $2.2 $3.3 $3.5 $3.6 $5.5 $6.3 $6.3 $6.5 $6.8 $8.0 $8.7 $13.8 $16.1 Truist CHARLIE Texas Capital Comerica ALPHA Woodforest BancorpSouth Prosperity Capital One Frost PRO FORMA Zions PNC BofA Wells Fargo JPMorgan RANKED #6 PRO FORMA IN HOUSTON REGION (1) MARKET SHARE HOUSTON REGION Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur MSAs HOUSTON REGION (1) MARKET SHARE PRO F R Allegiance CBTX BRANCHES Company Houston Region Total CBTX 26 34 Allegiance 26 26 $156.5 $33.2 $26.9 Cadence Deposits ($B) ______________ Source: S&P Capital IQ Pro // Note: Deposit market share based on FDIC data as of June 30, 2021; Pro forma represents deposits in the Houston Region as of June 30, 2021 on a combined basis (1) By cumulative deposit market share ranking in the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur MSAs Pending MOE Poised to Create Largest Deposit Market Share of any Texas-Based Bank in the Houston Region

7 Number of Branches Total Deposits In Market ($000) Total Market Share (%) % of Company Deposits Total Deposits In Market ($000) Total Market Share (%) Size Profile Houston-The Woodlands-Sugar Land, TX JPMorgan Chase & Co. (NY) 1 1 176 155,894,884$ 47.11 7.75 144,957,958$ 48.45 >$1T Wells Fargo & Co. (CA) 2 2 164 34,160,426 10.32 2.30 27,057,129 9.04 >$1T Bank of America Corporation (NC) 3 3 112 26,436,694 7.99 1.41 23,787,159 7.95 >$1T The PNC Finl Svcs Grp (PA) 4 4 86 14,991,787 4.53 3.33 16,073,270 5.37 >$500B Zions Bancorp. NA (UT) 5 5 59 13,834,338 4.18 18.18 11,527,801 3.85 >$80B Cullen/Frost Bankers Inc. (TX) 6 6 53 8,033,612 2.43 20.49 6,022,935 2.01 >$40B Prosperity Bancshares Inc. (TX) 7 8 58 6,444,413 1.95 22.07 5,635,177 1.88 >$30B Woodforest Financial Grp Inc. (TX) 8 10 105 6,280,274 1.90 72.01 5,349,523 1.79 >$9B Capital One Financial Corp. (VA) 9 9 22 6,243,102 1.89 2.03 5,463,024 1.83 >$400B Cadence Bancorp. (TX) 10 7 11 5,540,508 1.67 34.44 5,747,768 1.92 >$15B Allegiance Bancshares Inc. (TX) 11 11 26 5,215,366 1.58 95.53 4,568,351 1.53 ~$6.5B Comerica Inc. (TX) 12 12 49 3,554,038 1.07 4.65 3,457,262 1.16 >$80B Texas Capital Bancshares Inc. (TX) 13 13 2 3,543,956 1.07 12.10 3,037,992 1.02 >$30B Truist Financial Corp. (NC) 14 15 21 2,197,317 0.66 0.53 1,870,728 0.63 >$500B BOK Financial Corp. (OK) 15 16 11 2,127,591 0.64 5.65 1,802,005 0.60 >$40B CBTX Inc. (TX) 16 14 17 1,917,457 0.58 55.61 1,923,017 0.64 >$40B Regions Financial Corp. (AL) 17 18 52 1,830,098 0.55 1.38 1,692,428 0.57 >$100B Veritex Holdings Inc. (TX) 18 17 11 1,801,212 0.54 25.39 1,694,437 0.57 >$9B Independent Bk Group Inc. (TX) 19 19 13 1,791,921 0.54 11.89 1,585,009 0.53 >$15B First Horizon Corp. (TN) 20 20 7 1,700,009 0.51 2.29 1,533,609 0.51 >$80B Total For Institutions In Market 1,404 330,888,412$ 299,201,648$ 2020 Institution (ST) 2021 Rank 2020 Rank 2021 Allegiance - Deposit Market Share - Houston-The Woodlands-Sugar Land MSA _____________________ Source: S&P Global Intelligence as of June 30, 2021. (1) As of June 30 of the year shown, on a pro forma basis reflecting any announced acquisition. (1) (1) (1)

8 Historical Balance Sheet Growth Total LoansTotal Assets Total EquityTotal Deposits _____________________ Note: Dollars in millions. (1) Includes $1.50 billion in assets acquired on October 1, 2018. (2) Includes $1.16 billion of acquired loans at fair value on October 1, 2018. (3) Includes $1.29 billion of acquired deposits on October 1, 2018. (4) Includes $45.0 million of loans acquired on February 1, 2019. (5) Includes $16.0 million of deposits acquired on February 1, 2019. $2,860 $4,655 $4,993 $6,050 $7,105 $6,732 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2017 2018 2019 2020 2021 Q2 2022 Assets Acquired Assets (1) (4) $2,271 $3,708 $3,915 $4,492 $4,220 $4,349 $0 $1,000 $2,000 $3,000 $4,000 $5,000 2017 2018 2019 2020 2021 Q2 2022 Loans Acquired Loans (2) (4) $2,214 $3,663 $4,068 $4,988 $6,048 $5,881 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 2017 2018 2019 2020 2021 Q2 2022 Deposits Acquired Deposits (3) (5) $307 $703 $710 $759 $816 $705 $0 $200 $400 $600 $800 2017 2018 2019 2020 2021 Q2 2022

9 $22.9 $17.6 $37.3 $53.0 $45.5 $81.6 $22.9 $16.4 $1.75 $1.31 $2.37 $2.47 $2.22 $4.01 $1.12 $0.80 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $0.0 $10.0 $20.0 $30.0 $40.0 $50.0 $60.0 $70.0 $80.0 $90.0 2016 2017 2018 2019 2020 2021 Q2 2021 Q2 2022 Ea rn in gs p er S ha re ($ ) Ne t I nc om e Net Income Earnings per Share (Diluted) $89.9 $103.7 $128.6 $179.5 $202.7 $228.6 $56.6 $57.5 4.37% 4.34% 4.27% 4.22% 4.08% 3.90% 4.02% 3.53% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 $180.0 $200.0 $220.0 $240.0 2016 2017 2018 2019 2020 2021 Q2 2021 Q2 2022 Ne t I nt er es t M ar gi n (T ax E qu iv al en t) Ne t I nt er es t I nc om e Net Interest Income Net Interest Margin (TE) Earnings Performance Net Interest Income and Net Interest MarginNet Income and Earnings per Share _____________________ Note: Dollars in millions, except per share numbers. (1) Includes a one-time gain from sale of branches of $1.3 million (after-tax). (2) Includes $1.8 million and $1.7 million of core system conversion and acquisition and merger-related expenses, respectively, and $3.1 million of acquisition accounting adjustments. (3) Includes $9.6 million of acquisition accounting adjustments, $1.4 million of pre-tax severance expense and a $1.1 million FDIC Small Bank Assessment Credit. (1) (2) (3) (4) Includes $3.1 million of acquisition accounting adjustments. (5) Includes $9.6 million of acquisition accounting adjustments. (6) Annualized for the quarter ending June 30 for each respective year. (7) Includes a $2.2 million operational loss and $1.7 million of acquisition and merger-related expenses. (4) (5) (6) (6)(7)

10 (1) Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income (2) Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income (3) Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income (4) Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income (5) blank (6) Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income (7) 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 loan losses are not part of this calculation. (8) Includes a $2.2 million operational loss and $1.7 million of acquisition and merger-related expenses. 7.38% 9.22% 8.70% 9.52% 9.96% 6.93% 11.20% 11.50% 9.33% 14.93% 17.20% 13.00% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2021 Q2 2022 2.99% 2.82% 2.80% 2.83% 2.53% 2.59% 2.58% 2.50% 2.26% 2.13% 2.07% 2.17% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2021 Q2 2022 69.0% 69.2% 67.8% 65.3% 62.3%63.9% 63.7% 63.0% 60.6% 58.9% 57.1% 63.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2021 Q2 2022 0.65% 0.78% 0.75% 0.81% 0.98% 0.65% 1.11% 1.10% 0.81% 1.24% 1.42% 0.94% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2021 Q2 2022 Return on Average Tangible Equity(1)Return on Average Assets Noninterest Expense to Average AssetsEfficiency Ratio(7) _____________________ (1) Please refer to the non-GAAP reconciliation in the appendix. (2) Annualized for the quarter ending June 30 for each respective year. (3) Includes a one-time gain from sale of branches of $1.3 million (after-tax). (4) Includes $1.8 million and $1.7 million of core system conversion and merger-related expenses, respectively. (5) Includes $3.1 million of acquisition accounting adjustments. (3) (4)(5) (6) (6) (6) (4)(5) (4) (3) Earnings Performance, continued (2) (2)(8) (2) (2)(8) (2) (2)(8) (8)

11 5.09% 5.32% 5.32% 5.02% 5.02% 5.07% 5.00% 4.95% 4.87% 4.93% 0.32% 0.28% 0.25% 0.23% 0.25% 0.00% 0.50% 1.00% 1.50% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 4.00% 4.50% 5.00% 5.50% 6.00% Co st of D ep os its Yi eld o n Lo an s Yield on Loans Yield on Loans (excl. PPP) Cost of Deposits 4.02% 3.90% 3.57% 3.30% 3.53% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% Net Interest Margin (TE) Yields and Cost Analysis Net Interest Margin(1)Loan Portfolio Reported Yields and Total Deposit Costs _____________________ (1) Annualized for each respective quarter (1) (1)

12 Common Equity Tier 1 RatioTangible Equity / Tangible Assets(1) Total Risk-Based RatioTier 1 Risk-Based Ratio Capital Position – Allegiance Bancshares, Inc. _____________________ (1) Please refer to the non-GAAP reconciliation in the appendix. 9.38% 10.29% 9.78% 8.90% 8.42% 7.21% 2017 2018 2019 2020 2021 Q2 2022 10.54% 11.76% 11.42% 11.80% 12.47% 12.06% 2017 2018 2019 2020 2021 Q2 2022 13.43% 13.70% 14.83% 15.71% 16.08% 15.47% 2017 2018 2019 2020 2021 Q2 2022 10.92% 12.01% 11.66% 12.04% 12.69% 12.26% 2017 2018 2019 2020 2021 Q2 2022

13 Deposit Composition and Growth Deposit Growth TrendDeposit Composition _____________________ Note: Dollars in millions. As of the quarter ended June 30, 2022. Certificates and Other Time 16.3% Noninterest-bearing 40.7% Interest- bearing Demand 17.3% Money Market and Savings 25.7% Deposit Category ($) (%) Noninterest-bearing $ 2,394.7 40.7% Interest-bearing Demand 1,016.4 17.3% Money Market and Savings 1,510.0 25.7% Certificates and Other Time 959.5 16.3% Total $ 5,880.6 100.0% $2,214 $3,663 $4,068 $4,988 $6,048 $5,881 30.9% 33.0% 30.8% 34.2% 37.1% 40.7% 0.0% 10.0% 20.0% 30.0% 40.0% $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 2017 2018 2019 2020 2021 Q2 2022 No ni nt er es t-b ea rin g D ep os its to To ta l D ep os its De po sit s Deposits Noninterest-bearing (%)

14 C&I 16.7% Paycheck Protection Program (PPP) 0.7% CRE (incl. multifamily) 52.1% CRE C&D 10.4% Residential Construction 3.6% 1-4 family residential 15.7% Consumer and Other 0.8% Total Loan Portfolio Composition 54.4% of CRE is Owner-Occupied CRE (incl. multi-family) by Property Type CRE Construction by Property Type _____________________ Note: Dollars in millions, unless otherwise noted. As of June 30, 2022. (1) Includes classifications less than 2.0% of total composition. Loan Portfolio Composition Loan Category ($) (%) C&I 727.1$ 16.7% Paycheck Protection Program (PPP) 31.8 0.7% CRE (incl. multifamily) 2,265.1 52.1% CRE C&D 450.7 10.4% 1-4 family residential 682.1 15.7% Residential construction 155.0 3.6% Consumer and Other 37.0 0.8% Total 4,348.8$ 100.0% Retail 18.2% Office 17.6% Industrial Warehouse 15.1% C-Store 12.4% Multi-Family 4.2% Hotel / Motel 4.1% Church Facility 3.8% Restaurant / Bar 3.4% Service Center 3.1% Day Care 2.7% Rental / Investment 2.2% Mini Storage 2.2% Auto Sales / Repair 2.1% Other 8.9% Vacant Land-Near Term 27.6% Vacant Land- Future Construction 21.2% Resi. Vacant Land-Future Constr. 10.1% C-Store 7.2% Retail / Wholesale 6.8% Office 5.8% Industrial / Warehouse 4.6% Mobile Home / RV Park 3.8% Mini Storage 3.1% Other 9.8% Property Type ($) (%) Retail 412.8$ 18.2% Office 398.7 17.6% Industrial Warehouse 342.4 15.1% C-Store 280.6 12.4% Multi-Family 95.0 4.2% Hotel / Motel 92.1 4.1% Church Facility 85.9 3.8% Restaurant / Bar 77.7 3.4% Service Center 70.8 3.1% Day Care 62.0 2.7% Rental / Investment 49.0 2.2% Mini Storage 48.7 2.2% Auto Sales / Repair 47.7 2.1% Other(1) 201.7 8.9% Total 2,265.1$ 100.0% Property Type ($) (%) Vacant Land-Near Term 124.6$ 27.6% Vacant Land-Future Construction 95.6 21.2% Resi. Vacant Land-Future Constr. 45.4 10.1% C-Store 32.5 7.2% Retail / Wholesale 30.7 6.8% Office 26.0 5.8% Industrial / Warehouse 20.7 4.6% Mobile Home / RV Park 17.2 3.8% Mini Storage 14.0 3.1% Other(1) 44.0 9.8% Total 450.7$ 100.0%

15 Allowance / Total LoansAllowance / Nonperforming Loans Net Charge-offs / Average Loans(1)Nonperforming Loans / Total Loans Strong Asset Quality 121.0% 258.8% 259.0% 252.7% 107.3% 177.4% 79.9% 103.8% 184.0% 198.7% 178.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2022 1.13% 0.80% 0.82% 0.78% 0.95% 1.04% 0.71% 0.75% 1.18% 1.14% 1.16% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2022 0.94% 0.31% 0.32% 0.31% 0.88% 0.59% 0.89% 0.72% 0.64% 0.57% 0.65% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2022 0.25% 0.02% 0.06% 0.06% 0.04% 0.36% 0.06% 0.07% 0.18% 0.05% 0.05% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Q2 2022 (1) Annualized for the quarter ending June 30, 2022.

16 Our management uses certain non-GAAP financial measures in its analysis of our performance:  “Tangible Shareholders’ Equity” is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. Tangible shareholders’ equity is defined as total shareholders’ equity reduced by goodwill and core deposit intangibles, net of accumulated amortization. This measure is important to investors interested in changes from period to period in shareholders’ equity, exclusive of changes in intangible assets. For tangible shareholders’ equity, the most directly comparable financial measure calculated in accordance with GAAP is total shareholders’ equity. Goodwill and other intangible assets have the effect of increasing total shareholders’ equity while not increasing our tangible shareholders’ equity.  “Tangible Equity to Tangible Assets” is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. Tangible equity to tangible assets is defined as total shareholders’ equity reduced by goodwill and core deposit intangibles, net of accumulated amortization, divided by tangible assets, which are total assets reduced by goodwill and core deposit intangibles, net of accumulated amortization. This measure is important to investors interested in changes from period to period in equity and total assets, each exclusive of changes in intangible assets. For tangible equity to tangible assets, the most directly comparable financial measure calculated in accordance with GAAP is total shareholders’ equity to total assets. Goodwill and other intangible assets have the effect of increasing both total shareholders’ equity and assets while not increasing our tangible common equity or tangible assets. Appendix: Non-GAAP Reconciliation _____________________ Note: Dollars in thousands. (1) Annualized for each respective quarter. For the Years Ended December 31, For the Quarters Ended June 30, 2017 2018 2019 2020 2021 2021(1) 2022(1) Total Shareholders' Equity 306,865$ 702,984$ 709,865$ 758,669$ 816,468$ 789,150$ 705,329$ Less: Goodwill and Core Deposit Intangibles, net 42,663 249,712 245,518 241,596 238,300 239,948 236,798 Tangible Shareholders' Equity 264,202$ 453,272$ 464,347$ 517,073$ 578,168$ 549,202$ 468,531$ Total Assets 2,860,231$ 4,655,249$ 4,992,654$ 6,050,128$ 7,104,954$ 6,508,667$ 6,731,764$ Less: Goodwill and Core Deposit Intangibles, net 42,663 249,712 245,518 241,596 238,300 239,948 236,798 Tangible Assets 2,817,568$ 4,405,537$ 4,747,136$ 5,808,532$ 6,866,654$ 6,268,719$ 6,494,966$ Tangible Equity to Tangible Assets 9.38% 10.29% 9.78% 8.90% 8.42% 8.76% 7.21% For the Quarters Ended June 30, 2017 2018 2019 2020 2021 2021(1) 2022(1) Net Income Attributable to Shareholders 17,632$ 37,309$ 52,959$ 45,534$ 81,553$ 22,925$ 16,437$ Average Shareholders' Equity 297,627 413,441 708,269 731,688 786,036 774,803 744,126 Less: Average Goodwill and Core Deposit Intangibles, net 43,050 80,384 247,854 243,513 239,916 240,331 237,153 Average Tangible Shareholders’ Equity 254,577$ 333,057$ 460,415$ 488,175$ 546,120$ 534,472$ 506,973$ Return on Average Tangible Equity 6.93% 11.20% 11.50% 9.33% 14.93% 17.20% 13.00% For the Year Ended December 31,