Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Allegiance Bancshares, Inc. | earningsrelease-9302017.htm |
| 8-K - 8-K - Allegiance Bancshares, Inc. | a8-kearningsrelease9302017.htm |
Third Quarter 2017
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; 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, 2016 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 and one loan production office 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
Our Super-community Banking Strategy
Focus on Small and
Medium-Sized
Owner-Operated
Businesses
Responsive
Decision-Making by
Empowered Lenders
Full-Service Bank
Locations
Centralized Credit
Administration
Experienced Central
Operations Staff
Scalable Platform
Effective Centralized Operations
Extraordinary
Customer
Experience
Favorable Loan
Yields and Deposit
Relationships
High Net Interest
Margin
Strong Credit
Quality
Enhanced Efficiency
and Profitability
5
Highlights - 2017
• Record core loan growth of $363.3 million, or 20.7%, to $2.20 billion for the third quarter 2017 compared to $1.83 billion
for the third quarter 2016 and increased $76.8 million, or 15.1% (annualized), from $2.11 billion for the second quarter
2017.
• Net interest income increased 15.3% year over year and 7.5% for the third quarter 2017 compared to the linked quarter.
• Net income of $3.0 million and diluted earnings per share of $0.22 in the third quarter 2017 compared to $5.5 million and
$0.42 in the third quarter 2016. Net income for the third quarter 2017 decreased from $5.4 million in the second quarter
2017.
• Efficiency ratio increased slightly to 62.14% for the third quarter 2017 from 61.92% for the second quarter 2017
• Assets of $2.81 billion, loans of $2.20 billion, deposits of $2.29 billion and shareholder's equity of $302.7 million at
September 30, 2017.
• Hired 9 lenders for the year-to-date 2017 which adds to the 12 strong lenders hired in 2016. We continue to enhance our
infrastructure and strengthen internal processes and systems to support our ambitious growth plans.
• Named Largest Houston-Area Community Bank by the Houston Business Journal
• Houston Business Journal 2017 Best Places to Work recipient
• Named one of the Best Banks to Work For in 2017 by the American Banker Magazine
• Celebrated 10 Year Anniversary of Allegiance Bank
• Recognized as a 2016 Top Workplace by the Houston Chronicle
6
Net Income Growth
$24.0
$22.0
$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 2016 YTD 2016 YTD 2017
$2.0
$3.0
$4.6
$6.8
$9.0
$15.8
$22.9
$17.1
$14.4
($ in millions)
CAGR: 49.9
%
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
*
*
*
7
Diluted EPS Growth
$2.00
$1.50
$1.00
$0.50
$0.00
2010 2011 2012 2013 2014 2015 2016 YTD 2016 YTD 2017
$0.48
$0.68
$0.90
$1.22 $1.26
$1.43
$1.75
$1.31
$1.07
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
CAGR: 24.1
%
*
*
*
8
$98
$84
$70
$56
$42
$28
$14
$0
Ne
tI
nt
er
es
tI
nc
om
e
5.00%
4.50%
4.00%
3.50%
3.00%
2.50%
2.00%
Ta
xE
qu
iva
len
tN
et
In
te
re
st
Ma
rg
in
2010 2011 2012 2013 2014 2015 2016 YTD 2016 YTD 2017
$15.4
$21.2
$29.1
$33.9
$46.8
$80.2
$89.9
$66.4
$76.24.24%
4.33%
4.44%
4.19%
4.31%
4.68%
4.37%
4.39% 4.34%
Net Interest Income and Margin
($ in millions)
9
Performance Metrics
Efficiency Ratio
80.0%
70.0%
60.0%
50.0%
2010 2011 2012 2013 2014 2015 2016 YTD 2
017
77.57%
74.36%
69.02%
69.23%
67.79%
65.27%
62.34% 62.97%
Return on Average Assets
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
2010 2011 2012 2013 2014 2015 2016 YTD 2
017
0.53%
0.60% 0.65%
0.78% 0.75%
0.81%
0.98%
0.73%
Return on Average Tangible Common Equity
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
2010 2011 2012 2013 2014 2015 2016 YTD 2
017
4.76%
6.30%
7.38%
9.22% 8.70%
9.52% 9.96%
7.67%
Loans/Deposits
110.00%
100.00%
90.00%
80.00%
70.00%
2010 2011 2012 2013 2014 2015 2016 Q3 20
17
84.1%
82.2%
81.9%
80.0%
88.4%
95.6%
101.1%
96.3%*
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
**Interim periods annualized.
*
**
**
10
($ in millions)
Balance Sheet Growth
Total Assets
$3,500
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2010 2011 2012 2013 2014 2015 2016 Q3 2017
$428
$616
$774
$1,165
$1,280
$2,085
$2,451
$2,813
CAGR: 32.2
%
11
Loan Growth
$2,500
$2,000
$1,500
$1,000
$500
$0
2010 2011 2012 2013 2014 2015 2016 Q3 2017
$322
$463
$577
$837
$1,002
$1,681
$1,892
$2,202
CAGR: 33.0
%
($ in millions)
12
Loan Portfolio Composition
Loan Portfolio (as of September 30, 2017)
CRE (including multi-family) $1,045.2 47.5%
C&I 446.0 20.3%
1-4 Family Residential 283.4 12.9%
CRE Construction 225.6 10.2%
Residential Construction 106.3 4.8%
Mortgage Warehouse 83.6 3.8%
Consumer and Other 11.4 0.5%
Gross Loans $2,201.5 100.0%
C&I
20.3%
Mortgage
Warehouse
3.8%
CRE (including
multi-family) 47.5%
CRE
Construction
10.2%
Residential
construction
4.8% 1-4 family
residential
12.9%
Consumer
and other
0.5%
Approximately
53.1% of CRE is
owner occupied
CRE By Property Type
Retail $300.9 28.8%
Industrial/Warehouse 176.5 16.9
Office 131.6 12.6
Hotel/Motel 101.4 9.7
C-Store 99.2 9.5
Multi-Family 62.3 6.0
Farmland 20.3 1.9
Health Care 18.3 1.8
Other 134.7 12.8
Total CRE (incl. multi-family) $1,045.2 100.0%
($ in millions)
CRE Construction by Property Type
Vacant Land(Lots/Teardowns)$108.7 48.2%
C-Store 26.3 11.6
Retail 25.7 11.4
Office 13.5 6.0
Hotel/Motel 12.1 5.4
Industrial Warehouse 10.1 4.5
Health Care 4.8 2.1
Investment Property 3.5 1.6
Other 20.9 9.2
Total CRE Construction $225.6 100.0%
13
Deposit Growth and Composition
Deposit Composition
(as of September 30, 2017)
Noninterest-
bearing Demand
31.2%
Interest-
bearing
Demand
9.1%
Money Market
and Savings
26.7%
Certificates and
Other Time
33.0%
$3,000
$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%
No
ni
nt
er
es
t-b
ea
rin
g
De
m
an
d
(%
)
2010 2011 2012 2013 2014 2015 2016 Q3 20
17
$383
$563
$704
$1,045
$1,134
$1,759
$1,870
$2,287
20.2%
26.0%
30.8% 31.1%
33.0%
35.3%
31.7%
31.2%
($ in millions)
14
Strong Credit Quality
Net Charge-offs/Average Loans
1.00%
0.75%
0.50%
0.25%
0.00%
2010 2011 2012 2013 2014 2015 2016 YTD 2
017
0.29%
0.25% 0.25%
0.02%
0.06% 0.06% 0.04%
0.36%
*
*Interim period annualized.
*
Corporate Office
8847 West Sam Houston Parkway North, Suite 200
Houston, Texas 77040
Investor Relations I ir@allegiancebank.com