Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - Allegiance Bancshares, Inc. | investorpresentation1stq.htm |
| 8-K - 8-K - Allegiance Bancshares, Inc. | a8-kearningsrelease3312018.htm |
PRESS RELEASE
Allegiance Bancshares, Inc.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com
ALLEGIANCE BANCSHARES, INC. REPORTS
FIRST QUARTER 2018 RESULTS
• | Net income increased 27.5% to $7.7 million and diluted earnings per share of $0.57 for the first quarter 2018 compared to $6.0 million and $0.45 for the first quarter 2017 |
• | Core loan growth of $326.6 million, or 17.0%, year over year and $47.5 million, or 8.6% (annualized), for the first quarter 2018 compared to the linked quarter and deposit growth of $272.2 million, or 13.5%, year over year and $70.8 million, or 12.8% (annualized), for the first quarter 2018 compared to the linked quarter |
HOUSTON, April 26, 2018. Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $7.7 million and diluted earnings per share of $0.57 in the first quarter 2018 compared to $6.0 million and diluted earnings per share of $0.45 for the first quarter 2017.
"Our results for the first quarter reflect the fact that our customers respond favorably to their unique experience of doing business with Allegiance," said George Martinez, Allegiance's Chairman and Chief Executive Officer. "We continue to generate organic growth in both loans and deposits. Earnings were solid, noting the benefit of the reduction in the statutory tax rate as a result of the recent tax reform legislation. Our team is laser-focused on the execution of our key strategies and the delivery of high quality growth, while managing costs and risk. Asset quality remains strong with nonperforming assets to total assets at 0.49%," commented Martinez.
"This quarter is a good beginning, and we look forward to another successful year. We are grateful for our dedicated employees, who add value to customer relationships and provide superior service. They embody our culture and ensure a consistent customer experience at Allegiance, and we appreciate their hard work and loyalty," concluded Martinez.
First Quarter 2018 Results
Net interest income before provision for loan losses in the first quarter 2018 increased $2.8 million, or 11.4%, to $26.9 million from $24.1 million for the first quarter 2017 primarily due to organic loan growth partially offset by interest expense on the subordinated debt that was issued in December 2017. Net interest income before provision for loan losses in the first quarter 2018 decreased slightly from $27.4 million in the fourth quarter 2017 primarily due to interest expense on the subordinated debt that was issued in December 2017 partially offset by organic loan growth. The net interest margin on a tax equivalent basis decreased 18 basis points to 4.20% for the first quarter 2018 from 4.38% for the first quarter 2017 and decreased 13 basis points from 4.33% for the fourth quarter 2017. The decreases from the prior year and the linked quarter are primarily due to interest expense on the subordinated debt issuance.
Noninterest income for the first quarter 2018 was $1.6 million, an increase of $305 thousand, or 22.7%, compared to $1.3 million for the first quarter 2017 and increased $63 thousand compared to $1.6 million for the fourth quarter 2017.
Noninterest expense for the first quarter 2018 increased $2.2 million, or 13.1%, to $18.7 million from $16.5 million for the first quarter 2017, and decreased $559 thousand, or 2.9%, from $19.3 million for the fourth quarter 2017. The increase in noninterest expense over the first quarter 2017 was primarily due to salaries and benefits expense to support strategic growth initiatives. In the first quarter 2018, Allegiance’s efficiency ratio increased to 65.59% from 64.98% for the first quarter 2017 and decreased from 66.50% for the fourth quarter 2017. First quarter 2018 annualized returns on average assets, average equity and average tangible equity were 1.09%, 10.10% and 11.71%, respectively, compared to 0.96%, 8.61% and 10.15%, respectively, for the first quarter 2017. Annualized returns on average assets, average equity and average tangible equity for the fourth quarter 2017 were 0.45%, 4.15% and 4.82%, respectively.
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Financial Condition
Total assets at March 31, 2018 increased $294.2 million, or 11.3%, to $2.89 billion compared to $2.59 billion at March 31, 2017 and increased $26.3 million, or 0.9%, compared to $2.86 billion at December 31, 2017.
Total loans at March 31, 2018 increased $304.1 million, or 15.3%, to $2.29 billion compared to $1.99 billion at March 31, 2017 and increased $19.6 million, or 0.9%, compared to $2.27 billion at December 31, 2017. These increases were due to strong organic loan growth within the Bank’s loan portfolio. Core loans, which exclude the mortgage warehouse portfolio, increased $326.6 million, or 17.0%, to $2.25 billion at March 31, 2018 from $1.92 billion at March 31, 2017 and increased $47.5 million, or 2.2%, from $2.20 billion at December 31, 2017.
Deposits at March 31, 2018 increased $272.2 million, or 13.5%, to $2.28 billion compared to $2.01 billion at March 31, 2017 and increased $70.8 million, or 3.2%, compared to $2.21 billion at December 31, 2017.
Asset Quality
Nonperforming assets totaled $14.2 million, or 0.49% of total assets, at March 31, 2018, compared to $19.9 million, or 0.77% of total assets, at March 31, 2017, and $13.9 million, or 0.49% of total assets, at December 31, 2017. The allowance for loan losses was 1.08% of total loans at March 31, 2018, 0.94% of total loans at March 31, 2017 and 1.04% of total loans at December 31, 2017.
The provision for loan losses for the first quarter 2018 was $653 thousand, or 0.12% (annualized) of average loans, compared to $1.3 million, or 0.28% (annualized) of average loans, for the first quarter 2017, and $1.9 million, or 0.35% (annualized) of average loans, for the fourth quarter 2017.
First quarter 2018 net recoveries were $327 thousand compared to net charge-offs of $567 thousand for the first quarter 2017 and net charge-offs of $2.0 million for the fourth quarter 2017.
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 26, 2018 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its first quarter 2018 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 7295969. 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.
Allegiance is a $2.89 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 Houston metropolitan area-based small to medium-sized businesses and individual customers. 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. Allegiance Bank operates 16 full-service banking locations and one loan production office in the Houston metropolitan area. Visit www.allegiancebank.com for more information.
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“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, 2017 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.
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Allegiance Bancshares, Inc. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Cash and cash equivalents | $ | 190,088 | $ | 182,103 | $ | 192,427 | $ | 187,491 | $ | 184,146 | |||||||||
Available for sale securities | 307,411 | 309,615 | 323,856 | 321,268 | 317,219 | ||||||||||||||
Total loans | 2,290,494 | 2,270,876 | 2,201,540 | 2,114,652 | 1,986,438 | ||||||||||||||
Allowance for loan losses | (24,628 | ) | (23,649 | ) | (23,722 | ) | (21,010 | ) | (18,687 | ) | |||||||||
Loans, net | 2,265,866 | 2,247,227 | 2,177,818 | 2,093,642 | 1,967,751 | ||||||||||||||
Goodwill | 39,389 | 39,389 | 39,389 | 39,389 | 39,389 | ||||||||||||||
Core deposit intangibles, net | 3,079 | 3,274 | 3,469 | 3,664 | 3,860 | ||||||||||||||
Premises and equipment, net | 18,605 | 18,477 | 18,273 | 18,240 | 18,138 | ||||||||||||||
Other real estate owned | 365 | 365 | 453 | 365 | 365 | ||||||||||||||
Bank owned life insurance | 22,563 | 22,422 | 22,277 | 22,131 | 21,985 | ||||||||||||||
Other assets | 39,118 | 37,359 | 35,472 | 38,526 | 39,477 | ||||||||||||||
Total assets | $ | 2,886,484 | $ | 2,860,231 | $ | 2,813,434 | $ | 2,724,716 | $ | 2,592,330 | |||||||||
Noninterest-bearing deposits | $ | 694,880 | $ | 683,110 | $ | 712,951 | $ | 662,527 | $ | 615,225 | |||||||||
Interest-bearing deposits | 1,589,922 | 1,530,864 | 1,573,664 | 1,436,715 | 1,397,344 | ||||||||||||||
Total deposits | 2,284,802 | 2,213,974 | 2,286,615 | 2,099,242 | 2,012,569 | ||||||||||||||
Borrowed funds | 232,569 | 282,569 | 207,569 | 310,569 | 275,569 | ||||||||||||||
Subordinated debt | 48,719 | 48,659 | 9,277 | 9,249 | 9,222 | ||||||||||||||
Other liabilities | 8,406 | 8,164 | 7,246 | 7,197 | 5,840 | ||||||||||||||
Total liabilities | 2,574,496 | 2,553,366 | 2,510,707 | 2,426,257 | 2,303,200 | ||||||||||||||
Common stock | 13,302 | 13,227 | 13,171 | 13,153 | 13,080 | ||||||||||||||
Capital surplus | 219,760 | 218,408 | 216,943 | 216,158 | 215,015 | ||||||||||||||
Retained earnings | 82,533 | 74,894 | 71,690 | 68,704 | 63,309 | ||||||||||||||
Accumulated other comprehensive (loss) income | (3,607 | ) | 336 | 923 | 444 | (2,274 | ) | ||||||||||||
Shareholders' equity | 311,988 | 306,865 | 302,727 | 298,459 | 289,130 | ||||||||||||||
Total liabilities and equity | $ | 2,886,484 | $ | 2,860,231 | $ | 2,813,434 | $ | 2,724,716 | $ | 2,592,330 | |||||||||
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Allegiance Bancshares, Inc. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||
Loans, including fees | $ | 30,117 | $ | 29,747 | $ | 28,588 | $ | 26,736 | $ | 25,260 | |||||||||
Securities | |||||||||||||||||||
Taxable | 599 | 563 | 547 | 503 | 498 | ||||||||||||||
Tax-exempt | 1,459 | 1,545 | 1,574 | 1,591 | 1,624 | ||||||||||||||
Deposits in other financial institutions | 216 | 183 | 192 | 157 | 130 | ||||||||||||||
Total interest income | 32,391 | 32,038 | 30,901 | 28,987 | 27,512 | ||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||
Demand, money market and savings deposits | 976 | 992 | 811 | 702 | 654 | ||||||||||||||
Certificates and other time deposits | 2,785 | 2,521 | 2,299 | 2,283 | 1,957 | ||||||||||||||
Borrowed funds | 1,036 | 854 | 654 | 761 | 653 | ||||||||||||||
Subordinated debt | 705 | 235 | 140 | 134 | 120 | ||||||||||||||
Total interest expense | 5,502 | 4,602 | 3,904 | 3,880 | 3,384 | ||||||||||||||
NET INTEREST INCOME | 26,889 | 27,436 | 26,997 | 25,107 | 24,128 | ||||||||||||||
Provision for loan losses | 653 | 1,930 | 6,908 | 3,007 | 1,343 | ||||||||||||||
Net interest income after provision for loan losses | 26,236 | 25,506 | 20,089 | 22,100 | 22,785 | ||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||
Nonsufficient funds fees | 176 | 158 | 144 | 184 | 199 | ||||||||||||||
Service charges on deposit accounts | 223 | 179 | 204 | 205 | 195 | ||||||||||||||
Gain (loss) on sale of securities | — | 30 | (12 | ) | — | — | |||||||||||||
Gain on sale of other real estate | — | 6 | — | — | — | ||||||||||||||
Bank owned life insurance | 141 | 145 | 146 | 146 | 148 | ||||||||||||||
Rebate from correspondent bank | 444 | 388 | 370 | 336 | 233 | ||||||||||||||
Other | 662 | 677 | 608 | 606 | 566 | ||||||||||||||
Total noninterest income | 1,646 | 1,583 | 1,460 | 1,477 | 1,341 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 12,794 | 12,188 | 11,580 | 10,415 | 10,562 | ||||||||||||||
Net occupancy and equipment | 1,272 | 1,398 | 1,325 | 1,302 | 1,427 | ||||||||||||||
Depreciation | 407 | 412 | 427 | 398 | 400 | ||||||||||||||
Data processing and software amortization | 1,053 | 1,850 | 783 | 719 | 695 | ||||||||||||||
Professional fees | 469 | 222 | 822 | 987 | 895 | ||||||||||||||
Regulatory assessments and FDIC insurance | 534 | 533 | 582 | 569 | 589 | ||||||||||||||
Core deposit intangibles amortization | 195 | 195 | 195 | 196 | 195 | ||||||||||||||
Communications | 248 | 252 | 251 | 233 | 247 | ||||||||||||||
Advertising | 330 | 436 | 302 | 288 | 263 | ||||||||||||||
Other | 1,415 | 1,790 | 1,409 | 1,354 | 1,276 | ||||||||||||||
Total noninterest expense | 18,717 | 19,276 | 17,676 | 16,461 | 16,549 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 9,165 | 7,813 | 3,873 | 7,116 | 7,577 | ||||||||||||||
Provision for income taxes | 1,454 | 4,609 | 887 | 1,721 | 1,530 | ||||||||||||||
NET INCOME | $ | 7,711 | $ | 3,204 | $ | 2,986 | $ | 5,395 | $ | 6,047 | |||||||||
EARNINGS PER SHARE | |||||||||||||||||||
Basic | $ | 0.58 | $ | 0.24 | $ | 0.23 | $ | 0.41 | $ | 0.46 | |||||||||
Diluted | $ | 0.57 | $ | 0.24 | $ | 0.22 | $ | 0.40 | $ | 0.45 | |||||||||
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Allegiance Bancshares, Inc. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars and share amounts in thousands, except per share data) | ||||||||||||||||||||
Net income | $ | 7,711 | $ | 3,204 | $ | 2,986 | $ | 5,395 | $ | 6,047 | ||||||||||
Earnings per share, basic | $ | 0.58 | $ | 0.24 | $ | 0.23 | $ | 0.41 | $ | 0.46 | ||||||||||
Earnings per share, diluted | $ | 0.57 | $ | 0.24 | $ | 0.22 | $ | 0.40 | $ | 0.45 | ||||||||||
Return on average assets(A) | 1.09 | % | 0.45 | % | 0.43 | % | 0.81 | % | 0.96 | % | ||||||||||
Return on average equity(A) | 10.10 | % | 4.15 | % | 3.90 | % | 7.32 | % | 8.61 | % | ||||||||||
Return on average tangible equity(A)(B) | 11.71 | % | 4.82 | % | 4.55 | % | 8.57 | % | 10.15 | % | ||||||||||
Tax equivalent net interest margin(C) | 4.20 | % | 4.33 | % | 4.37 | % | 4.29 | % | 4.38 | % | ||||||||||
Efficiency ratio(D) | 65.59 | % | 66.50 | % | 62.14 | % | 61.92 | % | 64.98 | % | ||||||||||
Liquidity and Capital Ratios | ||||||||||||||||||||
Allegiance Bancshares, Inc. (Consolidated) | ||||||||||||||||||||
Equity to assets | 10.81 | % | 10.73 | % | 10.76 | % | 10.95 | % | 11.15 | % | ||||||||||
Tangible equity to tangible assets(B) | 9.48 | % | 9.38 | % | 9.38 | % | 9.52 | % | 9.65 | % | ||||||||||
Estimated common equity tier 1 capital | 10.81 | % | 10.54 | % | 10.68 | % | 10.84 | % | 11.10 | % | ||||||||||
Estimated tier 1 risk-based capital | 11.18 | % | 10.92 | % | 11.07 | % | 11.24 | % | 11.51 | % | ||||||||||
Estimated total risk-based capital | 13.71 | % | 13.43 | % | 12.04 | % | 12.13 | % | 12.35 | % | ||||||||||
Estimated tier 1 leverage capital | 9.97 | % | 9.84 | % | 9.90 | % | 10.11 | % | 10.28 | % | ||||||||||
Allegiance Bank | ||||||||||||||||||||
Estimated common equity tier 1 capital | 10.94 | % | 10.72 | % | 10.93 | % | 10.23 | % | 10.49 | % | ||||||||||
Estimated tier 1 risk-based capital | 10.94 | % | 10.72 | % | 10.93 | % | 10.23 | % | 10.49 | % | ||||||||||
Estimated total risk-based capital | 13.48 | % | 13.24 | % | 11.91 | % | 11.12 | % | 11.32 | % | ||||||||||
Estimated tier 1 leverage capital | 9.77 | % | 9.67 | % | 9.77 | % | 9.20 | % | 9.37 | % | ||||||||||
Other Data | ||||||||||||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 13,262 | 13,187 | 13,165 | 13,125 | 13,021 | |||||||||||||||
Diluted | 13,542 | 13,496 | 13,483 | 13,471 | 13,377 | |||||||||||||||
Period end shares outstanding | 13,301 | 13,227 | 13,171 | 13,153 | 13,080 | |||||||||||||||
Book value per share | $ | 23.46 | $ | 23.20 | $ | 22.98 | $ | 22.69 | $ | 22.10 | ||||||||||
Tangible book value per share(B) | $ | 20.26 | $ | 19.97 | $ | 19.73 | $ | 19.42 | $ | 18.80 | ||||||||||
(A) | Interim periods annualized. |
(B) | 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. |
(C) | Net interest margin represents net interest income divided by average interest-earning assets. |
(D) | Represents noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of securities. Additionally, taxes and provision for loan losses are not part of this calculation. |
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Allegiance Bancshares, Inc. | ||||||||||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2018 | December 31, 2017 | March 31, 2017 | ||||||||||||||||||||||||||||||
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 | $ | 2,260,119 | $ | 30,117 | 5.40 | % | $ | 2,209,389 | $ | 29,747 | 5.34 | % | $ | 1,928,333 | $ | 25,260 | 5.31 | % | ||||||||||||||
Securities | 312,769 | 2,058 | 2.67 | % | 322,539 | 2,108 | 2.59 | % | 325,911 | 2,122 | 2.64 | % | ||||||||||||||||||||
Deposits in other financial institutions | 49,897 | 216 | 1.74 | % | 47,257 | 183 | 1.54 | % | 53,338 | 130 | 0.99 | % | ||||||||||||||||||||
Total interest-earning assets | 2,622,785 | $ | 32,391 | 5.01 | % | 2,579,185 | $ | 32,038 | 4.93 | % | 2,307,582 | $ | 27,512 | 4.84 | % | |||||||||||||||||
Allowance for loan losses | (23,949 | ) | (23,740 | ) | (18,200 | ) | ||||||||||||||||||||||||||
Noninterest-earning assets | 272,430 | 267,611 | 259,315 | |||||||||||||||||||||||||||||
Total assets | $ | 2,871,266 | $ | 2,823,056 | $ | 2,548,697 | ||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 232,375 | $ | 317 | 0.55 | % | $ | 214,498 | $ | 252 | 0.47 | % | $ | 130,909 | $ | 100 | 0.31 | % | ||||||||||||||
Money market and savings deposits | 552,396 | 659 | 0.48 | % | 599,977 | 740 | 0.49 | % | 486,779 | 554 | 0.46 | % | ||||||||||||||||||||
Certificates and other time deposits | 800,343 | 2,785 | 1.41 | % | 766,942 | 2,521 | 1.30 | % | 685,169 | 1,957 | 1.16 | % | ||||||||||||||||||||
Borrowed funds | 250,414 | 1,036 | 1.68 | % | 232,863 | 854 | 1.45 | % | 345,848 | 653 | 0.75 | % | ||||||||||||||||||||
Subordinated debt | 48,684 | 705 | 5.87 | % | 17,070 | 235 | 5.46 | % | 9,205 | 120 | 5.28 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 1,884,212 | $ | 5,502 | 1.18 | % | 1,831,350 | $ | 4,602 | 1.00 | % | 1,657,910 | $ | 3,384 | 0.83 | % | |||||||||||||||||
Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 669,258 | 675,643 | 600,006 | |||||||||||||||||||||||||||||
Other liabilities | 8,251 | 9,717 | 5,892 | |||||||||||||||||||||||||||||
Total liabilities | 2,561,721 | 2,516,710 | 2,263,808 | |||||||||||||||||||||||||||||
Shareholders' equity | 309,545 | 306,346 | 284,889 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,871,266 | $ | 2,823,056 | $ | 2,548,697 | ||||||||||||||||||||||||||
Net interest rate spread | 3.82 | % | 3.93 | % | 4.01 | % | ||||||||||||||||||||||||||
Net interest income and margin | $ | 26,889 | 4.16 | % | $ | 27,436 | 4.22 | % | $ | 24,128 | 4.24 | % | ||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 27,174 | 4.20 | % | $ | 28,151 | 4.33 | % | $ | 24,907 | 4.38 | % | ||||||||||||||||||||
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Allegiance Bancshares, Inc. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2018 | 2017 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Period-end Loan Portfolio: | |||||||||||||||||||
Commercial and industrial | $ | 447,168 | $ | 457,129 | $ | 446,029 | $ | 444,701 | $ | 425,154 | |||||||||
Mortgage warehouse | 41,572 | 69,456 | 83,577 | 73,499 | 64,132 | ||||||||||||||
Real estate: | |||||||||||||||||||
Commercial real estate (including multi-family residential) | 1,108,537 | 1,080,247 | 1,045,220 | 1,008,027 | 961,212 | ||||||||||||||
Commercial real estate construction and land development | 257,566 | 243,389 | 225,574 | 206,024 | 175,264 | ||||||||||||||
1-4 family residential (including home equity) | 317,842 | 301,219 | 283,399 | 267,939 | 250,881 | ||||||||||||||
Residential construction | 108,882 | 109,116 | 106,299 | 102,832 | 99,648 | ||||||||||||||
Consumer and other | 8,927 | 10,320 | 11,442 | 11,630 | 10,147 | ||||||||||||||
Total loans | $ | 2,290,494 | $ | 2,270,876 | $ | 2,201,540 | $ | 2,114,652 | $ | 1,986,438 | |||||||||
Asset Quality: | |||||||||||||||||||
Nonaccrual loans | $ | 13,373 | $ | 13,328 | $ | 13,913 | $ | 19,330 | $ | 19,315 | |||||||||
Accruing loans 90 or more days past due | — | — | — | — | — | ||||||||||||||
Total nonperforming loans | 13,373 | 13,328 | 13,913 | 19,330 | 19,315 | ||||||||||||||
Other real estate | 365 | 365 | 453 | 365 | 365 | ||||||||||||||
Other repossessed assets | 443 | 205 | 205 | 205 | 260 | ||||||||||||||
Total nonperforming assets | $ | 14,181 | $ | 13,898 | $ | 14,571 | $ | 19,900 | $ | 19,940 | |||||||||
Net (recoveries) charge-offs | $ | (327 | ) | $ | 2,003 | $ | 4,196 | $ | 684 | $ | 567 | ||||||||
Nonaccrual loans: | |||||||||||||||||||
Commercial and industrial | $ | 6,153 | $ | 6,437 | $ | 5,031 | $ | 9,051 | $ | 8,933 | |||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||
Real estate: | |||||||||||||||||||
Commercial real estate (including multi-family residential) | 6,466 | 6,110 | 8,097 | 9,556 | 9,726 | ||||||||||||||
Commercial real estate construction and land development | — | — | — | — | 70 | ||||||||||||||
1-4 family residential (including home equity) | 754 | 781 | 735 | 568 | 574 | ||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Consumer and other | — | — | 50 | 155 | 12 | ||||||||||||||
Total nonaccrual loans | $ | 13,373 | $ | 13,328 | $ | 13,913 | $ | 19,330 | $ | 19,315 | |||||||||
Asset Quality Ratios: | |||||||||||||||||||
Nonperforming assets to total assets | 0.49 | % | 0.49 | % | 0.52 | % | 0.73 | % | 0.77 | % | |||||||||
Nonperforming loans to total loans | 0.58 | % | 0.59 | % | 0.63 | % | 0.91 | % | 0.97 | % | |||||||||
Allowance for loan losses to nonperforming loans | 184.16 | % | 177.44 | % | 170.50 | % | 108.69 | % | 96.75 | % | |||||||||
Allowance for loan losses to total loans | 1.08 | % | 1.04 | % | 1.08 | % | 0.99 | % | 0.94 | % | |||||||||
Net (recoveries) charge-offs to average loans (annualized) | (0.06 | )% | 0.36 | % | 0.78 | % | 0.13 | % | 0.12 | % | |||||||||
8
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. Allegiance believes 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 common share, return on average tangible equity and the ratio of tangible equity to tangible assets 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 | ||||||||||||||||||||
2018 | 2017 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars and share amounts in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 311,988 | $ | 306,865 | $ | 302,727 | $ | 298,459 | $ | 289,130 | ||||||||||
Less: Goodwill and core deposit intangibles, net | 42,468 | 42,663 | 42,858 | 43,053 | 43,249 | |||||||||||||||
Tangible shareholders’ equity | $ | 269,520 | $ | 264,202 | $ | 259,869 | $ | 255,406 | $ | 245,881 | ||||||||||
Shares outstanding at end of period | 13,301 | 13,227 | 13,171 | 13,153 | 13,080 | |||||||||||||||
Tangible book value per share | $ | 20.26 | $ | 19.97 | $ | 19.73 | $ | 19.42 | $ | 18.80 | ||||||||||
Net income attributable to shareholders | $ | 7,711 | $ | 3,204 | $ | 2,986 | $ | 5,395 | $ | 6,047 | ||||||||||
Average shareholders' equity | $ | 309,545 | $ | 306,346 | $ | 303,449 | $ | 295,524 | $ | 284,889 | ||||||||||
Less: Average goodwill and core deposit intangibles, net | 42,589 | 42,758 | 42,954 | 43,149 | 43,345 | |||||||||||||||
Average tangible shareholders’ equity | $ | 266,954 | $ | 263,588 | $ | 260,495 | $ | 252,375 | $ | 241,544 | ||||||||||
Return on average tangible equity | 11.71 | % | 4.82 | % | 4.55 | % | 8.57 | % | 10.15 | % | ||||||||||
Total assets | $ | 2,886,484 | $ | 2,860,231 | $ | 2,813,434 | $ | 2,724,716 | $ | 2,592,330 | ||||||||||
Less: Goodwill and core deposit intangibles, net | 42,468 | 42,663 | 42,858 | 43,053 | 43,249 | |||||||||||||||
Tangible assets | $ | 2,844,016 | $ | 2,817,568 | $ | 2,770,576 | $ | 2,681,663 | $ | 2,549,081 | ||||||||||
Tangible equity to tangible assets | 9.48 | % | 9.38 | % | 9.38 | % | 9.52 | % | 9.65 | % | ||||||||||
9