Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Allegiance Bancshares, Inc. | earningsrelease-3312018.htm |
| 8-K - 8-K - Allegiance Bancshares, Inc. | a8-kearningsrelease3312018.htm |
First Quarter 2018
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. These 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. 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, 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
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.
GAAP Reconciliation of Non-GAAP Financial Measures
Allegiance’s management uses certain non-GAAP financial measures to evaluate its performance. A reconciliation of the non-GAAP financial measures is
included on page 9 of the earnings release issued concurrently herewith.
3
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 $569.7 million
in total assets
Allegiance Bancshares, Inc.
Branch Map
Summary Financials
Company Overview
_____________________
*Annualized as of 1Q 2018
($ in thousands) 3/31/2018 12/31/2017 12/31/2016 12/31/2015
Total Assets 2,886,484$ 2,860,231$ 2,450,948$ 2,084,579$
Total Loans 2,290,494 2,270,876 1,891,635 1,681,052
Total Deposits 2,284,802 2,213,974 1,870,183 1,759,133
Total Equity 311,988 306,865 279,817 258,490
Loans/Deposits 100.2% 102.6% 101.1% 95.6%
NPAs/Assets 0.49% 0.49% 0.75% 0.25%
TCE/TA 9.48% 9.38% 9.82% 10.48%
NIM (tax equivalent) 4.20%* 4.34% 4.37% 4.68%
ROAA 1.09%* 0.65% 0.98% 0.81%
ROATCE 11.71%* 6.93% 9.96% 9.52%
Allegiance Bancshares, Inc.
4
Our Super-community Banking Strategy
High Net Interest
Margin
Strong Credit
Quality
Centralized Credit
Administration
Focus on Small
and Medium-Sized
Owner-Operated
Businesses
Full-Service Bank
Locations
Favorable Loan
Yields and Deposit
Relationships
Effective Centralized Operations
Scalable Platform
Strategy Structure Results
Experienced
Central Operations
Staff
Enhanced
Efficiency and
Profitability
Extraordinary
Customer
Experience
Responsive
Decision-Making
by Empowered
Lenders
5
Highlights – First Quarter 2018
• 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
• Net interest income increased 11.4% to $26.9 million for the first quarter 2018 compared to $24.1 million for the first quarter
2017
• Efficiency ratio increased slightly to 65.59% for the first quarter 2018 from 64.98% for the first quarter 2017
• Assets of $2.89 billion, loans of $2.29 billion, deposits of $2.28 billion and shareholder's equity of $312.0 million at March 31,
2018
• Core loan growth of $326.6 million, or 17.0%, year over year to $2.29 billion for the first quarter 2018 compared to $1.99
billion for the first quarter 2017
• Deposit growth of $272.2 million, or 13.5%, year over year to $2.28 billion for the first quarter 2018 compared to $2.01 billion
for the first quarter ended 2017
• Named Largest Houston-Area Community Bank by the Houston Business Journal
• Recognized in 2017 as a Finalist for Corporate Philanthropy by the Houston Business Journal
• Houston Business Journal 2017 Best Places to Work recipient
• Named one of the Best Banks to Work For in 2017 by the American Banker Magazine
• Recognized as a 2017 Top Workplace in Houston by the Houston Chronicle
6
Historical Growth
Total Loans
($ in millions)
Total Assets
Total Equity
($ in millions)
Total Deposits
($ in millions)
($ in millions)
$1,045 $1,134
$1,759
$1,870
$2,214 $2,285
$-
$500
$1,000
$1,500
$2,000
$2,500
2013 2014 2015 2016 2017 1Q 2018
$837
$1,002
$1,681
$1,892
$2,271 $2,290
$-
$500
$1,000
$1,500
$2,000
$2,500
2013 2014 2015 2016 2017 1Q 2018
$110
$132
$258
$280
$307 $312
$-
$50
$100
$150
$200
$250
$300
$350
2013 2014 2015 2016 2017 1Q 2018
$1,165 $1,280
$2,085
$2,451
$2,860 $2,886
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2013 2014 2015 2016 2017 1Q 2018
7
Net Income Growth
*
($ in thousands)
_____________________
(1) Includes a one-time gain from sale of branches of $1.3 million (after-tax)
*
$2,013
$2,995
$4,555
$6,839
$9,005
$15,786
$22,851
$17,632
$6,047
$7,711
$-
$4,000
$8,000
$12,000
$16,000
$20,000
$24,000
2010 2011 2012 2013 2014 2015 2016 2017 1Q 2017 1Q 2018
(1)
8
Diluted EPS Growth
*
_____________________
(1) Includes a one-time gain from sale of branches of $1.3 million (after-tax).
$0.48
$0.68
$0.90
$1.22 $1.26
$1.43
$1.75
$1.31
$0.45
$0.57
$-
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
2010 2011 2012 2013 2014 2015 2016 2017 1Q 2017 1Q 2018
(1)
9
Net Interest Income and Margin
($ in thousands)
$15,380
$21,198
$29,126
$33,891
$46,834
$80,166
$89,864
$103,668
$24,128
$26,889
4.24%
4.33%
4.44%
4.19%
4.31%
4.68%
4.37% 4.34% 4.38%
4.20%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
6.00%
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
2010 2011 2012 2013 2014 2015 2016 2017 1Q 2017 1Q 2018
Net Interest Income Net Interest Margin (tax equivalent)
_____________________
(1) Annualized
(1)
(1)
10
Performance Metrics
ROAA
Efficiency
_____________________
(1) Includes a one-time gain from sale of branches of $1.3 million (after-tax)
(2) Annualized
Noninterest Expense / Average Assets
ROATCE
77.57%
74.36%
69.02% 69.23%
67.79% 65.27%
62.34%
63.89%
64.98%
65.59%
60.00%
65.00%
70.00%
75.00%
80.00%
2010 2011 2012 2013 2014 2015 2016 2017 1Q
2017
1Q
2018
3.30%
3.26%
2.99%
2.82% 2.80%
2.83%
2.53%
2.59%
2.63%
2.64%
2.40%
2.60%
2.80%
3.00%
3.20%
3.40%
2010 2011 2012 2013 2014 2015 2016 2017 1Q
2017
1Q
2018
4.76%
6.30%
7.38%
9.22%
8.70%
9.52% 9.96%
6.93%
10.15%
11.71%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2010 2011 2012 2013 2014 2015 2016 2017 1Q
2017
1Q
2018
(1)
0.53%
0.60% 0.65%
0.78%
0.75%
0.81%
0.98%
0.65%
0.96%
1.09%
0.25%
0.45%
0.65%
0.85%
1.05%
1.25%
2010 2011 2012 2013 2014 2015 2016 2017 1Q
2017
1Q
2018
(1)
(2)
(2)
(2)
(2)
(2)
(2)
11
Loan Portfolio Composition
Loan Portfolio (as of March 31, 2018)
($ in millions)
CRE Construction by Property Type CRE (incl. multi-family) by Property Type
CRE (including multi-family) 1,108,537$ 48.4%
C&I 447,168 19.5%
1-4 Family Residential 317,842 13.9%
CRE Construction 257,566 11.2%
Residential Construction 108,882 4.8%
Mortgage Warehouse 41,572 1.8%
Consumer & Other 8,927 0.4%
Total Loans 2,290,494$ 100.0%
CRE (including
multi-family)
48.4%
C&I
19.5%
1-4 Family
Residential
13.9%
CRE Construction
11.2%
Residential
Construction
4.8%
Mortgage
Warehouse
1.8%
Consumer & Other
0.4%
Approximately
51.9% of CRE is
owner occupied
Vacant Land (Lots/Teardowns) 114.1$ 44.4%
Retail 34.0 13.2%
C-Store 24.6 9.5%
Office 21.9 8.5%
Hotel/Motel 21.4 8.3%
Health Care 12.7 4.9%
Industrial/Warehouse 10.8 4.2%
Investment Property 3.1 1.2%
Other 15.0 5.8%
Total CRE Construction 257.6$ 100.0%
Retail 304.1$ 27.5%
Industrial Warehouse 177.6 16.0%
Office 157.5 14.2%
Hotel/Motel 107.3 9.7%
C-Store 124.5 11.2%
Multi-Family 68.2 6.2%
Day Care 23.4 2.1%
Health Care 20.1 1.8%
Church Facility 17.9 1.6%
Farmland 16.7 1.5%
Restaurant/Bar 15.4 1.4%
Other 75.8 6.8%
Total CRE (incl. multi-family) 1,108.5$ 100.0%
12
Strong Credit Quality
Net Charge-offs / Average LoansNonperforming Loans / Total Loans
Allowance / Nonperforming Loans Allowance / Total Loans
211.34%
300.00%
121.00%
258.75%
258.98%
252.66%
107.26%
177.44%
184.16%
0%
50%
100%
150%
200%
250%
300%
350%
2010 2011 2012 2013 2014 2015 2016 2017 1Q 2018
1.25% 1.20%
1.13%
0.80%
0.82%
0.78%
0.95%
1.04%
1.08%
0.40%
0.50%
0.60%
0.70%
0.80%
0.90%
1.00%
1.10%
1.20%
1.30%
2010 2011 2012 2013 2014 2015 2016 2017 1Q 2018
0.59%
0.02%
0.94%
0.31%
0.32%
0.31%
0.88%
0.59%
0.58%
0.00%
0.15%
0.30%
0.45%
0.60%
0.75%
0.90%
1.05%
1.20%
2010 2011 2012 2013 2014 2015 2016 2017 1Q 2018
0.29%
0.25%
0.25%
0.02% 0.06% 0.06%
0.04%
0.36%
-0.06%
-0.10%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
2010 2011 2012 2013 2014 2015 2016 2017 1Q 2018
_____________________
(1) Annualized
(1)
13
Deposit Growth and Composition
Deposit Composition
($ in millions)
Deposit Growth
(as of March 31, 2018)
$1,045
$1,134
$1,759
$1,870
$2,214
$2,285
31.1%
33.0%
35.3%
31.8%
30.8% 30.4%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
$-
$500
$1,000
$1,500
$2,000
$2,500
2013 2014 2015 2016 2017 Q1 2018
Deposits Non-interest-bearing %
Noninterest-bearing
30.4%
Interest-bearing
Demand
6.3%
Money market and
sav ings
25.6%
Certificates and other
time
37.7%