Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Allegiance Bancshares, Inc. | earningsrelease-9302016.htm |
| 8-K - 8-K - Allegiance Bancshares, Inc. | a8-kearningsrelease9302016.htm |
Third Quarter 2016
Earnings Presentation
2
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation 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. These
statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,”
“projects,” “estimates,” “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. 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; continue to 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 factors are
discussed in Allegiance's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 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 presentation
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.
3
Allegiance Overview
• Holding company for Allegiance Bank based in Houston, Texas
• Headquartered in Houston, Texas
• NASDAQ Ticker: ABTX
• 16 full service banking locations within the Houston MSA
• Super-community banking model
• Two acquisitions completed:
• 2013: Independence Bank with $222.1 million in total assets
• 2015: Enterprise Bank (F&M Bancshares) with $569.7 million in total assets
4
Highlights - Third Quarter 2016
• Net Income of $5.5 million and diluted earnings per share of $0.42 in the third quarter of 2016 compared to
$5.3 million and $0.40 in the second quarter 2016
• Pre-tax, pre-provision adjusted net income of $9.8 million in the third quarter 2016 compared to $9.2 million
in the second quarter 2016
• ROE of 7.77%, ROA of 0.90% and an efficiency ratio of 60.34% for the third quarter 2016
• Assets of $2.46 billion, loans of $1.83 billion, deposits of $1.90 billion and stockholder's equity of $281.1
million at September 30, 2016
• Core loan growth of $76.6 million, or 4.6%, to $1.75 billion for the third quarter of 2016. Annualized organic
loan growth of 18.4% for the quarter
• Hired 10 new lenders and a treasury management specialist for the year-to-date September 30, 2016, of which
lenders, 4 were hired in the third quarter 2016
• Sound asset quality with annualized net recoveries to average loans of 0.01% for the third quarter 2016 and net
charge-offs to average loans of 0.04% for the year-to-date September 30, 2016
• Recognized as a 2016 Top Workplace by the Houston Chronicle
• Houston Business Journal 2016 Best Places to Work recipient
• Named one of the Best Banks to Work For in 2016 by the American Banker Magazine
5
Net Income Growth
$20.0
$18.0
$16.0
$14.0
$12.0
$10.0
$8.0
$6.0
$4.0
$2.0
$0.0
2010 2011 2012 2013 2014 2015 Q1 16 Q2 16 Q3 16
$2.0
$3.0
$4.6
$6.8
$9.0
$15.2
$6.4
$5.3
$5.5
($ in millions)
CAGR: 49.8
%
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
$17.1
YTD
*
6
Diluted EPS Growth
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
2010 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
$0.48
$0.68
$0.90
$1.22
$1.26
$1.43
$0.49
$0.40
$0.42
$1.31
YTD
*
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
7
$98
$84
$70
$56
$42
$28
$14
$0
N
et
In
te
re
st
In
co
m
e
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
N
et
In
te
re
st
M
ar
gi
n
2010 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
$15.4
$21.2
$29.1
$33.9
$46.8
$80.2
$21.1 $21.9 $23.4
4.24%
4.33%
4.44%
4.19%
4.32%
4.68%
4.45%
4.32%
4.39%
Net Interest Income and Margin
($ in millions)
$66.4
YTD
8
Performance Metrics
Efficiency Ratio
80.0%
70.0%
60.0%
50.0%
2010 2011 2012 2013 2014 2015Q1 2
016
Q2 2
016
Q3 2
016
77.6%
74.4%
69.0%
69.2%
67.7%
65.3%
63.8%
60.1% 60.3%
Return on Average Assets
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
2010 2011 2012 2013 2014 2015Q1 2
016
Q2 2
016
Q3 2
016
0.53%
0.60%
0.65%
0.78% 0.75%
0.81%
1.19%
0.91%
0.90%
Interim periods annualized
Return on Average Tangible Common Equity
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
2010 2011 2012 2013 2014 2015Q1 2
016
Q2 2
016
Q3 2
016
4.76%
6.30%
7.38%
9.22%
8.70%
9.52%
11.67%
9.30%
9.21%
Interim periods annualized
Loans/Deposits
100.00%
95.00%
90.00%
85.00%
80.00%
75.00%
70.00%
2010 2011 2012 2013 2014 2015Q1 2
016
Q2 2
016
Q3 2
016
84.07%
82.24%
81.89%
80.04%
88.39%
95.56%
93.21%
95.14%
96.31%
*
*
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
9
Balance Sheet Growth
Total Assets
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2010 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
$428
$616
$774
$1,165
$1,280
$2,085
$2,211
$2,368
$2,462
CAGR: 35.6
%
($ in millions)
10
Loan Growth
Loan Growth
$2,500
$2,000
$1,500
$1,000
$500
$0
2010 2011 2012 2013 2014 2015 Q1 2016 Q2 2016 Q3 2016
$322
$463
$577
$837
$1,002
$1,681 $1,717
$1,754
$1,831CAGR: 35.3
%
($ in millions)
11
Loan Portfolio Composition
Loan Portfolio (as of September 30, 2016)
CRE (including multi-family) $848.9 46.4%
C&I 402.3 22.0%
1-4 Family Residential 228.7 12.5%
CRE Construction 167.9 9.2%
Residential Construction 93.9 5.1%
Mortgage Warehouse 76.0 4.2%
Consumer and Other 13.0 0.6%
Gross Loans $1,830.7 100.0%
C&I
22.0%
Mortgage
Warehouse
4.2%
CRE (including
multi-family)
46.4%
CRE
Construction
9.2%
Residential
construction
5.1% 1-4 family
residential
12.5%
Consumer
and other
0.6%
Approximately
51.1% of CRE is
owner occupied
CRE By Property Type
Retail $254.8 30.0%
Industrial/Warehouse 153.8 18.1
Office 127.9 15.1
Hotel/Motel 88.8 10.4
C-Store 59.4 7.0
Multi-Family 46.8 5.5
Farmland 22.7 2.7
Health Care 8.4 1.0
Other 86.3 10.2
Total CRE (incl. multi-family) $848.9 100.0%
($ in millions)
CRE Construction by Property Type
Vacant Land $ 80.4 47.9%
Retail 38.5 22.9
C-Store 17.8 10.6
Industrial Warehouse 11.2 6.7
Hotel/Motel 0.6 0.3
Office 3.4 2.0
Multi-family 2.5 1.5
Health Care 2.1 1.2
Other 11.4 6.9
Total CRE Construction $167.9 100.0%
12
Deposit Growth and Composition
Deposit Composition
(as of September 30, 2016)
Noninterest-
bearing Demand
31.8%
Interest-
bearing
Demand
5.9%
Money Market
and Savings
26.5%
Certificates and
Other Time
35.8%
Deposit Growth
$2,500
$2,000
$1,500
$1,000
$500
$0
To
ta
lD
ep
os
its
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
N
on
in
te
re
st
-b
ea
ri
ng
D
em
an
d
(%
)
2010 2011 2012 2013 2014 2015 Q1 2
016
Q2 2
016
Q3 2
016
$383
$563
$704
$1,045
$1,134
$1,759 $1,843 $1,843
$1,901
20.2%
26.0%
30.8%
31.1%
33.0%
35.3%
37.1%
34.2%
31.8%
($ in millions)
13
Strong Credit Quality
NPLs/Total Loans
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2010 2011 2012 2013 2014 2015Q1 2
016
Q2 2
016
Q3 2
016
0.59%
0.02%
0.94%
0.31% 0.32% 0.31%
0.41% 0.41%
0.87%
NCOs/Average Loans
0.35%
0.30%
0.25%
0.20%
0.15%
0.10%
0.05%
0.00%
2010 2011 2012 2013 2014 2015Q1 2
016
Q2 2
016
Q3 2
016
0.29%
0.25% 0.25%
0.02%
0.06% 0.06%
0.01%
0.11%
—%
Corporate Office
8847 West Sam Houston Parkway North, Suite 200
Houston, Texas 77040
Investor Relations I ir@allegiancebank.com