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 |
|
- Interim periods annualized.
- 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.
- Net interest margin represents net
interest income divided by average interest-earning assets.
- 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 200Houston, Texas
77040ir@allegiancebank.com
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