Investor Relations

Investor Relations

Press Release

Allegiance Bancshares, Inc. Reports Third Quarter 2019 Results

Company Release - 10/25/2019 7:00 AM ET

HOUSTON, Oct. 25, 2019 (GLOBE NEWSWIRE) -- Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $12.0 million and diluted earnings per share of $0.57 for the third quarter 2019 compared to net income of $8.9 million and diluted earnings per share of $0.65 for the third quarter 2018.  The third quarter 2019 included $1.4 million of pre-tax severance expense.  Net income for the nine months ended September 30, 2019 was $39.0 million, or $1.81 per diluted share, compared to net income of $24.1 million, or $1.77 per diluted share, for the nine months ended September 30, 2018.  The nine months ended September 30, 2019 results included $1.4 million of pre-tax severance expense and $1.3 million of pre-tax acquisition and merger-related expenses. The nine months ended September 30, 2018 results included $821 thousand of pre-tax acquisition and merger-related expenses.

“The third quarter was very productive for us and culminated with the completion of a $60 million subordinated debt offering,” said George Martinez, Allegiance’s Chairman and Chief Executive Officer.  “Securing this attractive capital, positions us well for future growth,” continued Martinez.

“We are dedicated to taking great care of our customers by building on long-lasting relationships as we help them reach their financial goals.  We are also keenly focused on developing new customer relationships and adding to our market share.  Our personalized service to all of our customers is what will continue to set us apart as the premier bank in the Houston region and what will continue to drive our long-term financial success. We are in a tremendous position of strength and are encouraged about our prospects for the remainder of the year as we work to leverage our talent and capital to produce improved returns for our shareholders,” concluded Martinez.

Third Quarter 2019 Results

Net interest income before the provision for loan losses in the third quarter 2019 increased $16.8 million, or 59.9%, to $44.8 million from $28.0 million for the third quarter 2018 primarily due to a $1.55 billion, or 56.6%, increase in average interest-earning assets for the same period.  This increase was mainly due to the Post Oak Bancshares, Inc. acquisition during the fourth quarter of 2018 as well as organic growth for the year-over-year period.  Net interest income before provision for loan losses for the third quarter 2019 decreased from $45.6 million in the second quarter 2019.  The net interest margin on a tax equivalent basis increased 6 basis points to 4.16% for the third quarter 2019 from 4.10% for the third quarter 2018 and decreased 17 basis points from 4.33% for the second quarter 2019. Core net interest margin on a tax equivalent basis excludes the impact of acquisition accounting adjustments and was 3.97% for the third quarter 2019 compared to 4.07% for the second quarter 2019. Please refer to the non-GAAP reconciliation on page 10. 

Noninterest income for the third quarter 2019 was $2.9 million, an increase of $961 thousand, or 49.8%, compared to $1.9 million for the third quarter 2018 and decreased $956 thousand, or 24.9%, compared to $3.8 million for the second quarter 2019.  Noninterest income for the second quarter 2019 included $846 thousand of gain on the sale of securities. 

Noninterest expense for the third quarter 2019 increased $10.8 million, or 56.6%, to $30.0 million from $19.2 million for the third quarter 2018, and decreased slightly compared to the second quarter 2019. The increase over the prior year quarter was primarily due to additional expenses associated with increased headcount and bank offices from the Post Oak acquisition. Additionally, the third quarter 2019 included $1.4 million of severance expense partially offset by a $676 thousand FDIC Small Bank Assessment Credit.

In the third quarter 2019, Allegiance’s efficiency ratio was 62.88% compared to 61.93% for the second quarter 2019 and 63.95% for the third quarter 2018.  Third quarter 2019 annualized returns on average assets, average equity and average tangible equity were 0.98%, 6.73% and 10.33%, respectively, compared to 1.19%, 8.10% and 12.52%, respectively, for the second quarter 2019.  Annualized returns on average assets, average equity and average tangible equity for the third quarter 2018 were 1.18%, 10.80% and 12.40%, respectively.

Nine Months Ended September 30, 2019 Results

Net interest income before provision for loan losses for the nine months ended September 30, 2019 increased $52.3 million, or 63.2%, to $135.0 million from $82.7 million for the nine months ended September 30, 2018 primarily due to a $1.56 billion, or 58.4%, increase in average interest-earning assets over the prior year associated with the Post Oak acquisition.  The net interest margin on a tax equivalent basis increased 10 basis points to 4.27% for the nine months ended September 30, 2019 from 4.17% for the nine months ended September 30, 2018. Core net interest margin on a tax equivalent basis for the nine months ended September 30, 2019 would have been 4.02%, compared to 4.17% for the nine months ended September 30, 2018. Please refer to the non-GAAP reconciliation on page 10. 

Noninterest income for the nine months ended September 30, 2019 was $10.0 million, an increase of $4.6 million, or 86.3%, compared to $5.4 million for the nine months ended September 30, 2018 due primarily to additional noninterest income resulting from the Post Oak acquisition along with the gain on sale of securities.

Noninterest expense for the nine months ended September 30, 2019 increased $33.5 million, or 58.0%, to $91.2 million from $57.7 million for the nine months ended September 30, 2018. The increase in noninterest expense over the nine months ended September 30, 2018 was primarily due to additional expenses associated with increased headcount and bank offices along with merger-related expenses from the Post Oak acquisition. Additionally, the nine months ended 2019 included $1.4 million of severance expense partially offset by a $676 thousand FDIC Small Bank Assessment Credit.

Allegiance’s efficiency ratio decreased from 65.52% for the nine months ended September 30, 2018 to 63.25% for the nine months ended September 30, 2019. For the nine months ended September 30, 2019, returns on average assets, average equity and average tangible equity were 1.09%, 7.36% and 11.35%, respectively, compared to 1.10%, 10.16% and 11.72%, respectively, for the nine months ended September 30, 2018.

Financial Condition

Total assets at September 30, 2019 increased $111.6 million to $4.91 billion compared to $4.79 billion at June 30, 2019 and increased $1.87 billion compared to $3.04 billion at September 30, 2018, primarily due to the Post Oak acquisition and organic loan growth.

Total loans at September 30, 2019 increased $28.0 million, or 2.9% (annualized), to $3.89 billion compared to $3.86 billion at June 30, 2019 and increased $1.45 billion, or 59.2%, compared to $2.44 billion at September 30, 2018, primarily due to loans acquired in the Post Oak acquisition. Core loans, which exclude the mortgage warehouse portfolio, increased $37.6 million, or 4.0% (annualized), to $3.85 billion at September 30, 2019 from $3.81 billion at June 30, 2019 and increased $1.46 billion, or 60.9%, from $2.39 billion at September 30, 2018.  Excluding loans acquired from Post Oak at acquisition of $1.16 billion, core loans at September 30, 2019 increased $297.4 million, from September 30, 2018.

Deposits at September 30, 2019 increased $36.8 million, or 3.8% (annualized), to $3.90 billion compared to $3.86 billion at June 30, 2019 and increased $1.46 billion, or 60.1%, compared to $2.43 billion at September 30, 2018, primarily related to the Post Oak acquisition.

Asset Quality

Nonperforming assets totaled $42.9 million, or 0.88% of total assets, at September 30, 2019, compared to $37.7 million, or 0.79%, of total assets, at June 30, 2019, and $16.9 million, or 0.56% of total assets, at September 30, 2018. The allowance for loan losses was 0.77% of total loans at September 30, 2019, 0.72% of total loans at June 30, 2019 and 0.97% of total loans at September 30, 2018. The decrease in the allowance for loan losses as a percentage of loans from September 30, 2018 reflects the loans acquired in the Post Oak acquisition that were recorded at fair value without an allowance for loan losses at acquisition date.

The provision for loan losses for the third quarter 2019 was $2.6 million, or 0.27% (annualized) of average loans, compared to $1.4 million, or 0.15% (annualized) of average loans, for the second quarter 2019.

Third quarter 2019 net charge-offs were $729 thousand, or 0.07% (annualized) of average loans, compared to net charge-offs of $590 thousand, or 0.06% (annualized) of average loans, for the second quarter 2019 and $245 thousand, or 0.04% (annualized) of average loans, for the third quarter 2018. Net charge-offs for the nine months ended September 30, 2019 were $1.5 million, or 0.18% (annualized) of average loans, compared to net charge-offs for the nine months ended September 30, 2018 of $1.3 million, or 0.08% (annualized) of average loans.

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 10 of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

As previously announced, Allegiance’s management team will host a conference call on Friday, October 25, 2019 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its third quarter 2019 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 1986475.  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 September 30, 2019, Allegiance was a $4.91 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 September 30, 2019, Allegiance Bank operated 27 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 26 bank offices and one loan production office in the Houston metropolitan area and one bank office location in Beaumont, just outside of the Houston metropolitan area. Visit www.allegiancebank.com for more information.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

This release may contain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, present expectations, estimates and projections about Allegiance and its subsidiaries. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “continues,” “anticipates,” “intends,” “projects,” “estimates,” “potential,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Forward-looking statements include information concerning Allegiance’s future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Allegiance’s control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Allegiance can: continue to develop and maintain new and existing customer and community relationships; successfully implement its growth strategy, including identifying suitable acquisition targets and integrating the businesses of acquired companies and banks; sustain its current internal growth rate; provide quality and competitive products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its performance objectives. These and various other risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 and in other reports and statements Allegiance has filed with the Securities and Exchange Commission. Copies of such filings are available for download free of charge from the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Financial Information, SEC Filings.  Any forward-looking statement made by Allegiance in this release speaks only as of the date on which it is made. Factors or events that could cause Allegiance’s actual results to differ may emerge from time to time, and it is not possible for Allegiance to predict all of them. Allegiance undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  2019  2018 
  September 30  June 30  March 31  December 31  September 30 
                
  (Dollars in thousands) 
Cash and cash equivalents $300,619  $232,607  $258,843  $268,947  $191,468 
Available for sale securities  353,000   348,173   345,716   337,293   300,115 
                     
Total loans  3,886,004   3,857,963   3,806,161   3,708,306   2,440,926 
Allowance for loan losses  (29,808)  (27,940)  (27,123)  (26,331)  (23,586)
Loans, net  3,856,196   3,830,023   3,779,038   3,681,975   2,417,340 
                     
Goodwill  223,642   223,642   223,642   223,125   39,389 
Core deposit intangibles, net  23,053   24,231   25,409   26,587   2,688 
Premises and equipment, net  67,175   59,690   60,327   41,717   18,970 
Other real estate owned  8,333   6,294   1,152   630   1,801 
Bank owned life insurance  26,947   26,794   26,639   26,480   22,838 
Other assets  46,875   42,757   48,036   48,495   40,930 
Total assets $4,905,840  $4,794,211  $4,768,802  $4,655,249  $3,035,539 
                     
Noninterest-bearing deposits $1,227,839  $1,173,423  $1,181,920  $1,209,300  $789,705 
Interest-bearing deposits  2,669,646   2,687,217   2,598,141   2,453,236   1,644,086 
Total deposits  3,897,485   3,860,640   3,780,061   3,662,536   2,433,791 
                     
Borrowed funds  159,501   146,998   201,995   225,493   211,569 
Subordinated debt  107,771   49,019   48,959   48,899   48,839 
Other liabilities  34,775   32,853   34,010   15,337   13,209 
Total liabilities  4,199,532   4,089,510   4,065,025   3,952,265   2,707,408 
                     
Common stock  20,737   21,147   21,484   21,938   13,397 
Capital surplus  529,688   541,979   556,184   571,803   221,762 
Retained earnings  149,389   137,342   123,094   112,131   98,968 
Accumulated other comprehensive
  income (loss)
  6,494   4,233   3,015   (2,888)  (5,996)
Total shareholders’ equity  706,308   704,701   703,777   702,984   328,131 
Total liabilities and equity $4,905,840  $4,794,211  $4,768,802  $4,655,249  $3,035,539 

 

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Three Months Ended  Year-to-Date 
  2019  2018  2019  2018 
  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 $55,790  $56,016  $54,189  $53,272  $32,988  $165,995  $94,951 
  Securities:                     .     
  Taxable  2,090   1,837   982   844   636   4,909   1,881 
  Tax-exempt  483   692   1,290   1,445   1,447   2,465   4,357 
  Deposits in other financial
  institutions
  302   401   688   742   265   1,391   731 
  Total interest income  58,665   58,946   57,149   56,303   35,336   174,760   101,920 
                             
INTEREST EXPENSE:                            
  Demand, money market and
  savings deposits
  4,975   4,513   3,728   3,367   1,248   13,216   3,111 
  Certificates and other time
  deposits
  6,909   7,008   6,256   5,358   4,051   20,173   10,120 
  Borrowed funds  1,183   1,118   1,827   1,008   1,272   4,128   3,780 
  Subordinated debt  761   736   735   732   729   2,232   2,168 
  Total interest expense  13,828   13,375   12,546   10,465   7,300   39,749   19,179 
NET INTEREST INCOME  44,837   45,571   44,603   45,838   28,036   135,011   82,741 
Provision for loan losses  2,597   1,407   1,002   2,964      5,006   1,284 
Net interest income after provision
  for loan losses
  42,240   44,164   43,601   42,874   28,036   130,005   81,457 
                             
NONINTEREST INCOME:                            
  Nonsufficient funds fees  168   139   162   190   175   469   565 
  Service charges on deposit
  accounts
  379   365   325   363   177   1,069   506 
  Gain on sale of securities     846            846   
  Gain (loss) on sales of other real
  estate and repossessed assets
     70   1   (429)     71   1 
  Bank owned life insurance  153   155   159   163   137   467   416 
  Rebate from correspondent bank  900   884   896   988   613   2,680   1,621 
  Other  1,289   1,386   1,746   1,059   826   4,421   2,270 
  Total noninterest income  2,889   3,845   3,289   2,334   1,928   10,023   5,379 
                             
NONINTEREST EXPENSE:                            
  Salaries and employee benefits  20,221   19,415   19,684   18,167   12,965   59,320   38,537 
  Net occupancy and equipment  1,973   2,088   2,078   1,959   1,281   6,139   3,886 
  Depreciation  822   756   753   802   490   2,331   1,330 
  Data processing and software
  amortization
  2,058   1,735   1,597   1,485   1,226   5,390   3,635 
  Professional fees  667   527   599   670   303   1,793   1,339 
  Regulatory assessments and
  FDIC insurance
  (41)  802   728   776   505   1,489   1,533 
  Core deposit intangibles
  amortization
  1,178   1,178   1,178   1,229   195   3,534   586 
  Communications  455   468   430   416   262   1,353   769 
  Advertising  449   617   704   704   351   1,770   1,021 
  Acquisition and merger-related
  expenses
     153   1,173   840   196   1,326   821 
  Other  2,227   2,341   2,191   1,998   1,390   6,759   4,284 
  Total noninterest expense  30,009   30,080   31,115   29,046   19,164   91,204   57,741 
INCOME BEFORE INCOME TAXES  15,120   17,929   15,775   16,162   10,800   48,824   29,095 
  Provision for income taxes  3,073   3,681   3,097   2,999   1,921   9,851   4,949 
NET INCOME $12,047  $14,248  $12,678  $13,163  $8,879  $38,973  $24,146 
                             
EARNINGS PER SHARE                            
  Basic $0.57  $0.67  $0.58  $0.60  $0.66  $1.83  $1.81 
  Diluted $0.57  $0.66  $0.58  $0.59  $0.65  $1.81  $1.77 

 

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Three Months Ended  Year-to-Date 
  2019  2018  2019  2018 
  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 $12,047  $14,248  $12,678  $13,163  $8,879  $38,973  $24,146 
                             
Earnings per share, basic $0.57  $0.67  $0.58  $0.60  $0.66  $1.83  $1.81 
Earnings per share, diluted $0.57  $0.66  $0.58  $0.59  $0.65  $1.81  $1.77 
                             
Return on average assets(A)  0.98%  1.19%  1.08%  1.12%  1.18%  1.09%  1.10%
Return on average equity(A)  6.73%  8.10%  7.27%  7.49%  10.80%  7.36%  10.16%
Return on average tangible
  equity(A)(B)
  10.33%  12.52%  11.22%  11.66%  12.40%  11.35%  11.72%
Net interest margin
  (tax equivalent)(C)
  4.16%  4.33%  4.31%  4.45%  4.10%  4.27%  4.17%
Core net interest margin
  (tax equivalent)(B)
  3.97%  4.07%  4.03%  4.16%  4.10%  4.02%  4.17%
Efficiency ratio(D)  62.88%  61.93%  64.97%  60.30%  63.95%  63.25%  65.52%
                             
Capital Ratios                            
Allegiance Bancshares, Inc.
  (Consolidated)
                            
  Equity to assets  14.40%  14.70%  14.76%  15.10%  10.81%  14.40%  10.81%
  Tangible equity to tangible
  assets(B)
  9.86%  10.05%  10.06%  10.29%  9.56%  9.86%  9.56%
  Estimated common equity
  tier 1 capital
  11.28%  11.34%  11.37%  11.76%  11.17%  11.28%  11.16%
  Estimated tier 1 risk-based
  capital
  11.51%  11.58%  11.61%  12.01%  11.53%  11.51%  11.51%
  Estimated total risk-based
  capital
  14.70%  13.27%  13.28%  13.70%  13.94%  14.70%  13.92%
  Estimated tier 1 leverage
  capital
  10.06%  10.17%  10.25%  10.61%  10.23%  10.06%  10.23%
Allegiance Bank                            
  Estimated common equity
  tier 1 capital
  12.28%  12.02%  11.67%  11.83%  11.24%  12.28%  11.23%
  Estimated tier 1 risk-based
  capital
  12.28%  12.02%  11.67%  11.83%  11.24%  12.28%  11.23%
  Estimated total risk-based
  capital
  14.01%  13.71%  13.34%  13.53%  13.65%  14.01%  13.64%
  Estimated tier 1 leverage
  capital
  10.73%  10.57%  10.31%  10.45%  9.98%  10.73%  9.98%
                             
Other Data                            
Weighted average shares:                            
  Basic  20,981   21,257   21,733   21,908   13,371   21,321   13,320 
  Diluted  21,256   21,546   22,040   22,210   13,637   21,591   13,605 
Period end shares
  outstanding
  20,737   21,147   21,484   21,938   13,397   20,737   13,397 
Book value per share $34.06  $33.32  $32.76  $32.04  $24.49  $34.06  $24.49 
Tangible book value per
  share(B)
 $22.16  $21.60  $21.17  $20.66  $21.35  $22.16  $21.35 
  1. Interim periods annualized.
  2. Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on page 10 of this Earnings Release.
  3. Net interest margin represents net interest income divided by average interest-earning assets.
  4. 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.

 

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Three Months Ended 
  September 30, 2019  June 30, 2019  September 30, 2018 
  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 $3,870,205 $55,790  5.72% $3,819,687  $56,016 5.88% $2,384,966  $32,988  5.49%
Securities  359,392  2,573  2.84%  350,004   2,529 2.90%  304,254   2,083  2.72%
Deposits in other financial
  institutions and other
  55,070  302  2.17%  63,962   401 2.52%  47,518   265  2.21%
Total interest-earning assets  4,284,667 $58,665  5.43%  4,233,653  $58,946 5.58%  2,736,738  $35,336  5.12%
Allowance for loan losses  (28,593)        (27,125)        (24,059)       
Noninterest-earning assets  600,004         586,435         276,997        
Total assets $4,856,078        $4,792,963        $2,989,676        
                                
Liabilities and
  Shareholders' Equity
                               
Interest-Bearing Liabilities:                               
Interest-bearing demand
  deposits
 $332,652 $943  1.13% $350,147  $1,152 1.32% $181,284  $389  0.85%
Money market and savings
  deposits
  1,099,937  4,032  1.45%  994,557   3,361 1.36%  530,240   859  0.64%
Certificates and other time
  deposits
  1,269,886  6,909  2.16%  1,331,955   7,008 2.11%  896,253   4,051  1.79%
Borrowed funds  158,358  1,183  2.96%  155,969   1,118 2.87%  234,776   1,272  2.15%
Subordinated debt  51,607  761  5.85%  48,986   736 6.03%  48,805   729  5.93%
  Total interest-bearing
  liabilities
  2,912,440 $13,828  1.88%  2,881,614  $13,375 1.86%  1,891,358  $7,300  1.53%
                                
Noninterest-Bearing
  Liabilities:
                               
Noninterest-bearing demand
  deposits
  1,198,564         1,173,662         761,935        
Other liabilities  35,030         32,525         10,179        
  Total liabilities  4,146,034         4,087,801         2,663,472        
Shareholders' equity  710,044         705,162         326,204        
  Total liabilities and
  shareholders' equity
 $4,856,078        $4,792,963        $2,989,676        
                                
Net interest rate spread        3.55%        3.72%         3.59%
                                
Net interest income and margin    $44,837  4.15%     $45,571 4.32%     $28,036  4.06%
                                
Net interest income and net
  interest margin
  (tax equivalent)
    $44,924  4.16%     $45,684 4.33%     $28,292  4.10%


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Nine Months Ended September 30, 
  2019  2018 
  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 $3,812,827  $165,995   5.82% $2,319,727  $94,951   5.47%
Securities  352,074   7,374   2.80%  310,709   6,238   2.68%
Deposits in other financial institutions  79,309   1,391   2.34%  49,205   731   1.99%
Total interest-earning assets  4,244,210  $174,760   5.51%  2,679,641  $101,920   5.09%
Allowance for loan losses  (27,500)          (24,254)        
Noninterest-earning assets  581,932           276,777         
Total assets $4,798,642          $2,932,164         
                         
Liabilities and Shareholders' Equity                        
Interest-Bearing Liabilities:                        
Interest-bearing demand deposits $340,310  $3,058   1.20% $190,228  $914   0.64%
Money market and savings deposits  992,349   10,158   1.37%  534,925   2,197   0.55%
Certificates and other time deposits  1,301,478   20,173   2.07%  841,849   10,120   1.61%
Borrowed funds  198,839   4,128   2.78%  265,401   3,780   1.90%
Subordinated debt  49,849   2,232   5.99%  48,746   2,168   5.95%
Total interest-bearing liabilities  2,882,825  $39,749   1.84%  1,881,149  $19,179   1.36%
                         
Noninterest-Bearing Liabilities:                        
Noninterest-bearing demand deposits  1,179,914           724,493         
Other liabilities  28,270           8,742         
Total liabilities  4,091,009           2,614,384         
Shareholders' equity  707,633           317,780         
Total liabilities and shareholders' equity $4,798,642          $2,932,164         
                         
Net interest rate spread          3.67%          3.73%
                         
Net interest income and margin     $135,011   4.25%     $82,741   4.13%
                         
Net interest income and net
  interest margin
  (tax equivalent)
     $135,413   4.27%     $83,551   4.17%

 

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Three Months Ended 
  2019  2018 
  September 30  June 30  March 31  December 31  September 30 
                
  (Dollars in thousands) 
Period-end Loan Portfolio:                    
Commercial and industrial $675,055  $694,516  $699,471  $702,037  $458,434 
Mortgage warehouse  36,594   46,171   36,742   48,274   48,876 
Real estate:                    
  Commercial real estate (including
  multi-family residential)
  1,859,721   1,830,764   1,771,890   1,650,912   1,161,992 
  Commercial real estate construction and
  land development
  386,723   368,108   396,162   430,128   298,916 
  1-4 family residential (including home equity)  695,520   690,961   658,261   649,311   344,342 
  Residential construction  189,608   183,991   201,314   186,411   117,740 
Consumer and other  42,783   43,452   42,321   41,233   10,626 
Total loans $3,886,004  $3,857,963  $3,806,161  $3,708,306  $2,440,926 
                     
Asset Quality:                    
Nonaccrual loans $34,615  $31,382  $32,670  $32,953  $14,943 
Accruing loans 90 or more days past due               
Total nonperforming loans  34,615   31,382   32,670   32,953   14,943 
Other real estate  8,333   6,294   1,152   630   1,801 
Other repossessed assets              205 
Total nonperforming assets $42,948  $37,676  $33,822  $33,583  $16,949 
                     
Net charge-offs $729  $590  $210  $219  $245 
                     
Nonaccrual loans:                    
Commercial and industrial $8,033  $9,386  $11,221  $10,861  $6,258 
Mortgage warehouse               
Real estate:                    
  Commercial real estate (including
  multi-family residential)
  15,356   18,218   17,531   17,776   5,006 
  Commercial real estate construction and
  land development
  9,050   1,541   818   974   694 
  1-4 family residential (including home equity)  1,992   2,074   2,928   3,201   2,985 
  Residential construction               
Consumer and other  184   163   172   141    
Total nonaccrual loans $34,615  $31,382  $32,670  $32,953  $14,943 
                     
Asset Quality Ratios:                    
Nonperforming assets to total assets  0.88%  0.79%  0.71%  0.72%  0.56%
Nonperforming loans to total loans  0.89%  0.81%  0.86%  0.89%  0.61%
Allowance for loan losses to nonperforming loans  86.11%  89.03%  83.02%  79.90%  157.84%
Allowance for loan losses to total loans  0.77%  0.72%  0.71%  0.71%  0.97%
Net charge-offs to average loans (annualized)  0.07%  0.06%  0.02%  0.02%  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 tangible book value per share, return on average tangible equity, the ratio of tangible equity to tangible assets and core net interest margin on a tax equivalent basis 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  Year-to-Date 
 2019  2018  2019  2018 
 September 30  June 30  March 31  December 31  September 30  September 30  September 30 
                     
 (Dollars and share amounts in thousands, except per share data) 
Total shareholders' equity$706,308  $704,701  $703,777  $702,984  $328,131  $706,308  $328,131 
Less:  Goodwill and core
  deposit intangibles, net
 246,695   247,873   249,051   249,712   42,077   246,695   42,077 
Tangible shareholders
  equity
$459,613  $456,828  $454,726  $453,272  $286,054  $459,613  $286,054 
                            
Shares outstanding at end of
  period
 20,737   21,147   21,484   21,938   13,397   20,737   13,397 
                            
Tangible book value per share$22.16  $21.60  $21.17  $20.66  $21.35  $22.16  $21.35 
                            
Net income$12,047  $14,248  $12,678  $13,163  $8,879  $38,973  $24,146 
                            
Average shareholders' equity$710,044  $705,162  $707,666  $697,303  $326,204  $707,633  $317,780 
Less:  Average goodwill and
  core deposit intangibles, net
 247,404   248,621   249,277   249,252   42,203   248,427   42,394 
Average tangible
  shareholders’ equity
$462,640  $456,541  $458,389  $448,051  $284,001  $459,206  $275,386 
                            
Return on average
  tangible equity
 10.33%  12.52%  11.22%  11.66%  12.40%  11.35%  11.72%
                            
Total assets$4,905,840  $4,794,211  $4,768,802  $4,655,249  $3,035,539  $4,905,840  $3,035,539 
Less: Goodwill and core
  deposit intangibles, net
 246,695   247,873   249,051   249,712   42,077   246,695   42,077 
Tangible assets$4,659,145  $4,546,338  $4,519,751  $4,405,537  $2,993,462  $4,659,145  $2,993,462 
                            
Tangible equity to tangible
  assets
 9.86%  10.05%  10.06%  10.29%  9.56%  9.86%  9.56%
                            
Net interest income
  (tax equivalent)
$44,924  $45,684  $44,805  $46,100  $28,292  $135,413  $83,551 
Less: Acquisition accounting
  adjustments
 (2,045)  (2,755)  (2,965)  (3,069)     (7,765)   
Core net interest
  income (tax equivalent)
$42,879  $42,929  $41,840  $43,031  $28,292  $127,648  $83,551 
                            
Average earning assets$4,284,667  $4,233,653  $4,212,669  $4,108,645  $2,736,738  $4,244,210  $2,679,641 
                            
Net interest margin
  (tax equivalent)
 4.16%  4.33%  4.31%  4.45%  4.10%  4.27%  4.17%
Core net interest margin
  (tax equivalent)
 3.97%  4.07%  4.03%  4.16%  4.10%  4.02%  4.17%

Allegiance Bancshares, Inc.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com

 

Allegiance Bank - BancsharesOneLineHorizontalWithRegMark.jpg

Source: Allegiance Bancshares, Inc.

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