Investor Relations

Investor Relations

Press Release

Allegiance Bancshares, Inc. Reports First Quarter 2020 Results

Company Release - 4/30/2020 7:00 AM ET
  • Promptly supported customers, employees and community with proactive response to the COVID-19 pandemic
  • Approved more than 3,500 loans in excess of $640 million within the Small Business Administration Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) through April 26, 2020
     
  • Surpassed $5 billion in assets, further bolstering market position as the largest community bank exclusively focused on the Houston region
     
  • Net interest margin increased to 4.15% for the first quarter 2020 from 4.11% for the fourth quarter 2019
     
  • Declared quarterly dividend of $0.10 per share of common stock

HOUSTON, April 30, 2020 (GLOBE NEWSWIRE) -- Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the holding company of Allegiance Bank (the “Bank”), today reported net income of $3.5 million and diluted earnings per share of $0.17 for the first quarter 2020 compared to net income of $12.7 million and diluted earnings per share of $0.58 for the first quarter 2019.  The first quarter 2020 results were primarily driven by the increased provision expense in response to COVID-19-related uncertainties in the current economic environment and write-downs in other real estate owned.

“While first quarter earnings were negatively impacted by the broader economic risks and uncertainties relating to the COVID-19 pandemic, the true story for the quarter was the phenomenal effort and execution of our entire team at Allegiance Bank under unprecedented conditions” said Steve Retzloff, Allegiance’s Chief Executive Officer.  “We enter the second quarter very well-positioned to navigate potential challenges related to the evolving COVID-19 and economic situation.  Our capital is very strong, our loan portfolio is granular and well-collateralized, and our people remain dedicated to providing extraordinary service to our customers, albeit remotely when appropriate,” commented Retzloff.

“Our pre-existing pandemic response plan enabled us to quickly respond to the situation and fulfill our commitment to providing a safe environment for our customers and employees.  Implementation strategies have included social distancing, acquisition of a pre-arranged supply of laptops that allow for an extensive work-from-home program, drive-thru only service, evaluating and responding to customer needs and a more recent show of strength as we processed thousands of Paycheck Protection Program applications for both existing and new customers.  The extraordinary dedication of our employees has been remarkable,” continued Retzloff.

First Quarter 2020 Results

Net interest income before the provision for loan losses in the first quarter 2020 increased $422 thousand, or 0.9%, to $45.0 million from $44.6 million for the first quarter 2019 and from $44.5 million in the fourth quarter 2019.  These increases were primarily due to changes in the volume and relative mix of the underlying assets and liabilities as well as lower costs related to interest-bearing liabilities.  The net interest margin on a tax equivalent basis decreased 16 basis points to 4.15% for the first quarter 2020 from 4.31% for the first quarter 2019 and increased 4 basis points from 4.11% for the fourth quarter 2019.  Core net interest margin on a tax equivalent basis excludes the impact of acquisition accounting adjustments and was 4.04% for the first quarter 2020 compared to 4.03% for the first quarter 2019 and 3.94% for the fourth quarter 2019.  Please refer to the non-GAAP reconciliation on page 9.

Noninterest income for the first quarter 2020 was $2.7 million, a decrease of $564 thousand, or 17.1%, compared to $3.3 million for the first quarter 2019 and a decrease of $675 thousand, or 19.9%, compared to $3.4 million for the fourth quarter 2019.  Noninterest income for the first quarter 2020 and the fourth quarter 2019 included $194 thousand and $613 thousand, respectively, of gains on the sale of securities.

Noninterest expense for the first quarter 2020 increased $1.3 million, or 4.1%, to $32.4 million from $31.1 million for the first quarter 2019 and increased $3.0 million, or 10.1%, compared to the fourth quarter 2019.  Noninterest expense for the first quarter 2020 included $2.2 million of other real estate write-downs.

In the first quarter 2020, Allegiance’s efficiency ratio was 68.13% compared to 62.20% for the fourth quarter 2019 and 64.97% for the first quarter 2019.  First quarter 2020 annualized returns on average assets, average equity and average tangible equity were 0.29%, 1.98% and 3.02%, respectively, compared to 1.13%, 7.81% and 11.96%, respectively, for the fourth quarter 2019.  Annualized returns on average assets, average equity and average tangible equity for the first quarter 2019 were 1.08%, 7.27% and 11.22%, respectively. Return on average tangible equity is a non-GAAP measure.  Please refer to the non-GAAP reconciliation on page 9. 

Financial Condition

Total assets at March 31, 2020 increased $9.8 million to $5.00 billion compared to $4.99 billion at December 31, 2019 and increased $233.6 million compared to $4.77 billion at March 31, 2019, primarily due to organic loan growth.

Total loans at March 31, 2020 increased $40.2 million, or 4.1% (annualized), to $3.96 billion compared to $3.92 billion at December 31, 2019 and increased $149.4 million, or 3.9%, compared to $3.81 billion at March 31, 2019, primarily due to organic loan growth.  Core loans, which exclude the mortgage warehouse portfolio, increased $47.4 million, or 4.9% (annualized), to $3.95 billion at March 31, 2020 from $3.91 billion at December 31, 2019 and increased $185.1 million, or 4.9%, from $3.77 billion at March 31, 2019.

Loans with oil and gas industry exposure totaled $80.7 million, or 2.0%, of total loans at March 31, 2020, of which $826 thousand were on nonaccrual.  At March 31, 2020, the Company’s allowance for loan losses allocated to its total oil and gas loan portfolio was 1.5% of total oil and gas loans.

In addition, at March 31, 2020, loan balances in the hotel and restaurant and bar industries was $133.0 million, or 3.4%, of total loans, and $101.3 million, or 2.6%, of total loans, respectively.  At March 31, 2020, there were no hotel loans on nonaccrual and there were $794 thousand restaurant and bar loans on nonaccrual.  At March 31, 2020, the Company’s allowance for loan losses allocated to its hotel portfolio was 1.0% of total hotel loans and its restaurant and bar portfolio was 1.2% of total restaurant and bar loans.

The Company had executed 1,563 principal and interest deferrals on outstanding loan balances of $838.1 million, as of April 26, 2020, in connection with the COVID-19 relief provided by the CARES Act. These deferrals were generally no more than 90 days in duration.

Deposits at March 31, 2020 decreased $114.5 million, or 11.3% (annualized), to $3.95 billion compared to $4.07 billion at December 31, 2019 and increased $173.5 million, or 4.6%, compared to $3.78 billion at March 31, 2019.

Asset Quality

Nonperforming assets totaled $34.2 million, or 0.68% of total assets, at March 31, 2020, compared to $36.7 million, or 0.74% of total assets, at December 31, 2019, and $33.8 million, or 0.71% of total assets, at March 31, 2019.  The allowance for loan losses was 0.95% of total loans at March 31, 2020, 0.75% of total loans at December 31, 2019 and 0.71% of total loans at March 31, 2019.  Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (CECL), became effective for the Company on January 1, 2020.  On March 27, 2020, the CARES Act included an option for entities to delay the implementation of CECL until the earlier of the termination date of the national emergency declaration by the President or December 31, 2020.  Due to the uncertainty on the economy from COVID-19, the Company chose to delay its implementation of CECL and recorded its provision for loan losses under the incurred loss model that existed prior to CECL.

The provision for loan losses for the first quarter 2020 was $11.0 million, or 1.12% (annualized) of average loans, compared to $933 thousand, or 0.10% (annualized) of average loans, for the fourth quarter 2019 and $1.0 million, or 0.11% (annualized) of average loans for the first quarter 2019 primarily due to economic risks and uncertainties related to the COVID-19 pandemic.  The increase in the Company’s provision for loan losses in the first quarter of 2020 compared to prior quarters reflects overall growth in the loan portfolio; increased level of charge-offs; and increasing uncertainty surrounding unemployment, the economic impact caused by COVID-19 and the economic effects related to the recent sharp decline in crude oil prices.

First quarter 2020 net charge-offs were $2.9 million, or 0.30% (annualized) of average loans, compared to net charge-offs of $1.3 million, or 0.13% (annualized) of average loans, for the fourth quarter 2019 and $210 thousand, or 0.02% (annualized) of average loans, for the first quarter 2019.

Dividend

On April 23, 2020, the Board of Directors of Allegiance declared a cash dividend of $0.10 per share to be paid on June 15, 2020 to all shareholders of record as of May 29, 2020.  The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.

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 9 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 Thursday, April 30, 2020 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first quarter 2020 results.  Individuals and investment professionals may participate in the call by dialing (877) 279-2520.  The conference ID number is 9575797.  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 March 31, 2020, Allegiance was a $5.00 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 March 31, 2020, 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 contains forward-looking statements within the meaning of the securities laws that are derived utilizing 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 expected 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.  Additionally, the impact of the COVID-19 pandemic is rapidly evolving and its future effects on Allegiance are difficult to predict.  These and various other risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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.  Because of these uncertainties, readers should not place undue reliance on any forward-looking statement.  Allegiance disclaims any 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.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  2020  2019 
  March 31  December 31  September 30  June 30  March 31 
                
  (Dollars in thousands) 
ASSETS                    
Cash and due from banks $156,700  $213,347  $246,312  $170,850  $169,975 
Interest-bearing deposits at other financial
  institutions
  18,189   132,901   54,307   61,757   88,868 
Total cash and cash equivalents  174,889   346,248   300,619   232,607   258,843 
Available for sale securities, at fair value  508,250   372,545   353,000   348,173   345,716 
Loans held for investment  3,955,546   3,915,310   3,886,004   3,857,963   3,806,161 
Less: allowance for loan losses  (37,511)  (29,438)  (29,808)  (27,940)  (27,123)
Loans, net  3,918,035   3,885,872   3,856,196   3,830,023   3,779,038 
Accrued interest receivable  17,203   15,468   15,201   16,508   16,194 
Premises and equipment, net  66,798   66,790   67,175   59,690   60,327 
Other real estate owned  12,617   8,337   8,333   6,294   1,152 
Federal Home Loan Bank stock  12,798   6,242   14,138   8,866   14,365 
Bank owned life insurance  27,255   27,104   26,947   26,794   26,639 
Goodwill  223,642   223,642   223,642   223,642   223,642 
Core deposit intangibles, net  20,886   21,876   23,053   24,231   25,409 
Other assets  20,056   18,530   17,536   17,383   17,477 
Total assets $5,002,429  $4,992,654  $4,905,840  $4,794,211  $4,768,802 
LIABILITIES AND SHAREHOLDERS’
  EQUITY
                    
LIABILITIES:                    
Deposits:                    
Noninterest-bearing $1,217,532  $1,252,232  $1,227,839  $1,173,423  $1,181,920 
Interest-bearing                    
Demand  341,524   367,278   340,754   390,067   328,961 
Money market and savings  1,110,631   1,258,008   1,114,233   995,467   901,773 
Certificates and other time  1,283,887   1,190,583   1,214,659   1,301,683   1,367,407 
Total interest-bearing deposits  2,736,042   2,815,869   2,669,646   2,687,217   2,598,141 
Total deposits  3,953,574   4,068,101   3,897,485   3,860,640   3,780,061 
Accrued interest payable  3,821   4,326   4,915   3,531   4,511 
Borrowed funds  190,506   75,503   159,501   146,998   201,995 
Subordinated debt  107,930   107,799   107,771   49,019   48,959 
Other liabilities  40,005   27,060   29,860   29,322   29,499 
Total liabilities  4,295,836   4,282,789   4,199,532   4,089,510   4,065,025 
SHAREHOLDERS’ EQUITY:                    
Common stock  20,355   20,524   20,737   21,147   21,484 
Capital surplus  513,894   521,066   529,688   541,979   556,184 
Retained earnings  164,858   163,375   149,389   137,342   123,094 
Accumulated other comprehensive
  income
  7,486   4,900   6,494   4,233   3,015 
Total shareholders’ equity  706,593   709,865   706,308   704,701   703,777 
TOTAL LIABILITIES AND
  SHAREHOLDERS’ EQUITY
 $5,002,429  $4,992,654  $4,905,840  $4,794,211  $4,768,802 


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Three Months Ended 
  2020  2019 
  March 31  December 31  September 30  June 30  March 31 
                
  (Dollars in thousands, except per share data) 
INTEREST INCOME:                    
Loans, including fees $54,624  $55,368  $55,790  $56,016  $54,189 
Securities:                    
Taxable  2,087   2,066   2,090   1,837   982 
Tax-exempt  546   469   483   692   1,290 
Deposits in other financial
  institutions
  195   244   302   401   688 
Total interest income  57,452   58,147   58,665   58,946   57,149 
                     
INTEREST EXPENSE:                    
Demand, money market and
  savings deposits
  4,364   5,091   4,975   4,513   3,728 
Certificates and other time
  deposits
  6,084   6,483   6,909   7,008   6,256 
Borrowed funds  506   547   1,183   1,118   1,827 
Subordinated debt  1,473   1,500   761   736   735 
Total interest expense  12,427   13,621   13,828   13,375   12,546 
NET INTEREST INCOME  45,025   44,526   44,837   45,571   44,603 
Provision for loan losses  10,990   933   2,597   1,407   1,002 
Net interest income after provision
  for loan losses
  34,035   43,593   42,240   44,164   43,601 
                     
NONINTEREST INCOME:                    
Nonsufficient funds fees  169   189   168   139   162 
Service charges on deposit
  accounts
  457   403   379   365   325 
Gain on sale of securities  194   613      846    
(Loss) gain on sales of other real
  estate and repossessed assets
  (69)  (45)     70   1 
Bank owned life insurance  151   157   153   155   159 
Rebate from correspondent bank  493   900   900   884   896 
Other  1,330   1,183   1,289   1,386   1,746 
Total noninterest income  2,725   3,400   2,889   3,845   3,289 
                     
NONINTEREST EXPENSE:                    
Salaries and employee benefits  19,781   18,273   20,221   19,415   19,684 
Net occupancy and equipment  1,907   1,994   1,973   2,114   2,098 
Depreciation  866   861   822   756   753 
Data processing and software
  amortization
  1,826   2,120   2,058   1,709   1,577 
Professional fees  573   540   667   527   599 
Regulatory assessments and
  FDIC insurance
  632   216   (41)  802   728 
Core deposit intangibles
  amortization
  990   1,177   1,178   1,178   1,178 
Communications  417   486   455   468   430 
Advertising  521   597   449   617   704 
Acquisition and merger-related
  expenses
           153   1,173 
Other  4,888   3,167   2,227   2,341   2,191 
Total noninterest expense  32,401   29,431   30,009   30,080   31,115 
INCOME BEFORE INCOME
  TAXES
  4,359   17,562   15,120   17,929   15,775 
Provision for income taxes  843   3,576   3,073   3,681   3,097 
NET INCOME $3,516  $13,986  $12,047  $14,248  $12,678 
                     
EARNINGS PER SHARE                    
Basic $0.17  $0.68  $0.57  $0.67  $0.58 
Diluted $0.17  $0.67  $0.57  $0.66  $0.58 


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Three Months Ended 
  2020  2019 
  March 31  December 31  September 30  June 30  March 31 
                
  (Dollars and share amounts in thousands, except per share data) 
Net income $3,516  $13,986  $12,047  $14,248  $12,678 
                     
Earnings per share, basic $0.17  $0.68  $0.57  $0.67  $0.58 
Earnings per share, diluted $0.17  $0.67  $0.57  $0.66  $0.58 
                     
Return on average assets(A)  0.29%  1.13%  0.98%  1.19%  1.08%
Return on average equity(A)  1.98%  7.81%  6.73%  8.10%  7.27%
Return on average tangible
  equity(A)(B)
  3.02%  11.96%  10.33%  12.52%  11.22%
Net interest margin
   (tax equivalent)(C)
  4.15%  4.11%  4.16%  4.33%  4.31%
Core net interest margin
  (tax equivalent)(B)
  4.04%  3.94%  3.97%  4.07%  4.03%
Efficiency ratio(D)  68.13%  62.20%  62.88%  61.93%  64.97%
                     
Capital Ratios                    
Allegiance Bancshares, Inc.
  (Consolidated)
                    
Equity to assets  14.12%  14.22%  14.40%  14.70%  14.76%
Tangible equity to tangible
  assets(B)
  9.71%  9.78%  9.86%  10.05%  10.06%
Estimated common equity
  tier 1 capital
  11.16%  11.42%  11.28%  11.34%  11.37%
Estimated tier 1 risk-based
   capital
  11.40%  11.66%  11.51%  11.58%  11.61%
Estimated total risk-based
  capital
  14.73%  14.83%  14.70%  13.27%  13.28%
Estimated tier 1 leverage
  capital
  9.89%  10.02%  10.06%  10.17%  10.25%
Allegiance Bank                    
Estimated common equity
  tier 1 capital
  12.60%  12.67%  12.28%  12.02%  11.67%
Estimated tier 1 risk-based
  capital
  12.60%  12.67%  12.28%  12.02%  11.67%
Estimated total risk-based
  capital
  14.50%  14.39%  14.01%  13.71%  13.34%
Estimated tier 1 leverage
  capital
  10.94%  10.89%  10.73%  10.57%  10.31%
                     
Other Data                    
Weighted average shares:                    
Basic  20,411   20,652   20,981   21,257   21,733 
Diluted  20,690   20,930   21,256   21,546   22,040 
Period end shares
  outstanding
  20,355   20,524   20,737   21,147   21,484 
Book value per share $34.71  $34.59  $34.06  $33.32  $32.76 
Tangible book value per
  share(B)
 $22.70  $22.62  $22.16  $21.60  $21.17 
  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 9 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 
  March 31, 2020  December 31, 2019  March 31, 2019 
  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 $3,933,291  $54,624   5.59% $3,888,476  $55,368   5.65% $3,747,234  $54,189   5.86%
Securities  388,721   2,633   2.72%  364,605   2,535   2.76%  346,686   2,272   2.66%
Deposits in other financial
  institutions and other
  50,711   195   1.55%  54,947   244   1.76%  118,749   688   2.35%
Total interest-earning assets  4,372,723  $57,452   5.28%  4,308,028  $58,147   5.35%  4,212,669  $57,149   5.50%
Allowance for loan losses  (28,718)          (29,997)          (26,760)        
Noninterest-earning assets  602,778           639,601           559,763         
Total assets $4,946,783          $4,917,632          $4,745,672         
                                     
Liabilities and
  Shareholders' Equity
                                    
Interest-Bearing Liabilities:                                    
Interest-bearing demand
  deposits
 $363,326  $846   0.94% $361,666  $952   1.04% $338,193  $963   1.16%
Money market and savings
  deposits
  1,168,541   3,518   1.21%  1,169,996   4,139   1.40%  880,138   2,765   1.27%
Certificates and other time
  deposits
  1,193,427   6,084   2.05%  1,203,110   6,483   2.14%  1,302,958   6,256   1.95%
Borrowed funds  140,999   506   1.44%  86,372   547   2.51%  283,566   1,827   2.61%
Subordinated debt  107,865   1,473   5.49%  107,782   1,500   5.52%  48,925   735   6.09%
Total interest-bearing
  liabilities
  2,974,158  $12,427   1.68%  2,928,926  $13,621   1.85%  2,853,780  $12,546   1.78%
                                     
Noninterest-Bearing
  Liabilities:
                                    
Noninterest-bearing demand
  deposits
  1,225,888           1,237,770           1,167,172         
Other liabilities  33,202           40,781           17,054         
Total liabilities  4,233,248           4,207,477           4,038,006         
Shareholders' equity  713,535           710,155           707,666         
Total liabilities and
  shareholders' equity
 $4,946,783          $4,917,632          $4,745,672         
                                     
Net interest rate spread          3.60%          3.50%          3.72%
                                     
Net interest income and margin     $45,025    4.14%     $44,526   4.10%     $44,603   4.29%
                                     
Net interest income and net
  interest margin (tax equivalent)
     $45,152   4.15%     $44,623   4.11%     $44,805   4.31%


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)

  Three Months Ended 
  2020  2019 
  March 31  December 31  September 30  June 30  March 31 
                
  (Dollars in thousands) 
Period-end Loan Portfolio:                    
Commercial and industrial $702,267  $689,360  $675,055  $694,516  $699,471 
Mortgage warehouse  1,051   8,304   36,594   46,171   36,742 
Real estate:                    
Commercial real estate (including
  multi-family residential)
  1,951,080   1,873,782   1,859,721   1,830,764   1,771,890 
Commercial real estate construction and
  land development
  378,987   410,471   386,723   368,108   396,162 
1-4 family residential (including home equity)  704,212   698,957   695,520   690,961   658,261 
Residential construction  177,025   192,515   189,608   183,991   201,314 
Consumer and other  40,924   41,921   42,783   43,452   42,321 
Total loans $3,955,546  $3,915,310  $3,886,004  $3,857,963  $3,806,161 
                     
Asset Quality:                    
Nonaccrual loans $21,621  $28,371  $34,615  $31,382  $32,670 
Accruing loans 90 or more days past due               
Total nonperforming loans  21,621   28,371   34,615   31,382   32,670 
Other real estate  12,617   8,337   8,333   6,294   1,152 
Other repossessed assets               
Total nonperforming assets $34,238  $36,708  $42,948  $37,676  $33,822 
                     
Net charge-offs $2,917  $1,303  $729  $590  $210 
                     
Nonaccrual loans:                    
Commercial and industrial $8,669  $8,388  $8,033  $9,386  $11,221 
Mortgage warehouse               
Real estate:                    
Commercial real estate (including
  multi-family residential)
  7,024   6,741   15,356   18,218   17,531 
Commercial real estate construction and
  land development
  1,958   9,050   9,050   1,541   818 
1-4 family residential (including home equity)  2,845   3,294   1,992   2,074   2,928 
Residential construction  982   746          
Consumer and other  143   152   184   163   172 
Total nonaccrual loans $21,621  $28,371  $34,615  $31,382  $32,670 
                     
Asset Quality Ratios:                    
Nonperforming assets to total assets  0.68%  0.74%  0.88%  0.79%  0.71%
Nonperforming loans to total loans  0.55%  0.72%  0.89%  0.81%  0.86%
Allowance for loan losses to nonperforming loans  173.49%  103.76%  86.11%  89.03%  83.02%
Allowance for loan losses to total loans  0.95%  0.75%  0.77%  0.72%  0.71%
Net charge-offs to average loans (annualized)  0.30%  0.13%  0.07%  0.06%  0.02%


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 
  2020  2019 
  March 31  December 31  September 30  June 30  March 31 
                
  (Dollars and share amounts in thousands, except per share data) 
Total shareholders' equity $706,593  $709,865  $706,308  $704,701  $703,777 
Less:  Goodwill and core
  deposit intangibles, net
  244,528   245,518   246,695   247,873   249,051 
Tangible shareholders
  equity
 $462,065  $464,347  $459,613  $456,828  $454,726 
                     
Shares outstanding at end of
  period
  20,355   20,524   20,737   21,147   21,484 
                     
Tangible book value per share $22.70  $22.62  $22.16  $21.60  $21.17 
                     
Net income $3,516  $13,986  $12,047  $14,248  $12,678 
                     
Average shareholders' equity $713,535  $710,155  $710,044  $705,162  $707,666 
Less:  Average goodwill and
  core deposit intangibles, net
  245,007   246,154   247,404   248,621   249,277 
Average tangible
  shareholders’ equity
 $468,528  $464,001  $462,640  $456,541  $458,389 
                     
Return on average
  tangible equity
  3.02%  11.96%  10.33%  12.52%  11.22%
                     
Total assets $5,002,429  $4,992,654  $4,905,840  $4,794,211  $4,768,802 
Less: Goodwill and core
  deposit intangibles, net
  244,528   245,518   246,695   247,873   249,051 
Tangible assets $4,757,901  $4,747,136  $4,659,145  $4,546,338  $4,519,751 
                     
Tangible equity to tangible
  assets
  9.71%  9.78%  9.86%  10.05%  10.06%
                     
Net interest income
  (tax equivalent)
 $45,152  $44,623  $44,924  $45,684  $44,805 
Less: Acquisition accounting
  adjustments
  (1,259)  (1,860)  (2,045)  (2,755)  (2,965)
Core net interest
  income (tax equivalent)
 $43,893  $42,763  $42,879  $42,929  $41,840 
                     
Average earning assets $4,372,723  $4,308,028  $4,284,667  $4,233,653  $4,212,669 
                     
Net interest margin
  (tax equivalent)
  4.15%  4.11%  4.16%  4.33%  4.31%
Core net interest margin
  (tax equivalent)
  4.04%  3.94%  3.97%  4.07%  4.03%

 

Allegiance Bank - BancsharesOneLineHorizontalWithRegMark.jpg

Source: Allegiance Bancshares, Inc.

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