Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Allegiance Bancshares, Inc. | abtx-8k_20181025.htm |
| EX-99.2 - EX-99.2 - Allegiance Bancshares, Inc. | abtx-ex992_75.htm |
Exhibit 99.1
PRESS RELEASE
Allegiance Bancshares, Inc.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com
ALLEGIANCE BANCSHARES, INC. REPORTS RECORD
THIRD QUARTER 2018 RESULTS
|
|
• |
Record earnings of $8.9 million and diluted earnings per common share of $0.65 for the third quarter 2018 |
|
|
• |
Core loan growth of $274.1 million year over year, or 12.9%, and $84.9 million for the third quarter 2018 compared to the linked quarter, or 14.7% (annualized) |
|
|
• |
Net charge-offs of 0.04% and 0.08% (annualized) for the third quarter and year-to-date 2018, respectively |
|
|
• |
Completed the acquisition of Post Oak Bancshares, Inc. on October 1, 2018 |
HOUSTON, October 25, 2018. Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $8.9 million and diluted earnings per share of $0.65 for the third quarter 2018 compared to $3.0 million and diluted earnings per share of $0.22 for the third quarter 2017. Net income for the nine months ended September 30, 2018 was $24.1 million, or $1.77 per diluted share, compared to $14.4 million, or $1.07 per diluted share, for the nine months ended September 30, 2017. The nine months ended September 30, 2018 results include $1.8 million and $821 thousand of core system conversion and merger-related expenses, respectively.
“I am extremely pleased to report record quarterly earnings for Allegiance, both in terms of net income and earnings per share. Our results reflect the execution of our core strategies as evidenced by double-digit organic loan growth and a continued focus on strong credit quality,” said George Martinez, Allegiance’s Chairman and Chief Executive Officer.
“Additionally, we are excited to have completed our merger with Post Oak on October 1st, which further enhanced our market position as Houston’s largest community bank. With this merger, we have surpassed $4 billion in total assets, which we believe will allow us to gain valuable scale and take advantage of organic and strategic growth opportunities that will further enhance shareholder value. We are proud to welcome the employees, clients and shareholders of Post Oak to the Allegiance family. Together, we are committed to providing the same superior, personalized service to which our customers are accustomed and to the continued investment in the communities where we live and work. We anticipate completing the operational integration of Post Oak during the first quarter of 2019,” concluded Martinez.
Third Quarter 2018 Results
Net interest income before provision for loan losses in the third quarter 2018 increased $1.0 million, or 3.8%, to $28.0 million from $27.0 million for the third 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 third quarter 2018 increased slightly from $27.8 million in the second quarter 2018. The net interest margin on a tax equivalent basis decreased 27 basis points to 4.10% for the third quarter 2018 from 4.37% for the third quarter 2017 and decreased 11 basis points from 4.21% for the second quarter 2018. The decrease from the prior year was primarily due to the increase in interest expense on interest-bearing liabilities driven in part by the subordinated debt issuance in December 2017.
Noninterest income for the third quarter 2018 was $1.9 million, an increase of $468 thousand, or 32.1%, compared to $1.5 million for the third quarter 2017 and increased $123 thousand compared to $1.8 million for the second quarter 2018.
Noninterest expense for the third quarter 2018 increased $1.5 million, or 8.4%, to $19.2 million from $17.7 million for the third quarter 2017, and decreased $696 thousand, or 3.5%, from $19.9 million for the second quarter 2018. The increase in noninterest expense over the third quarter 2017 was primarily due to salaries and benefits and data processing and software amortization expenses incurred to support strategic growth initiatives, partially offset by a decrease in professional fees. Noninterest expense decreased over the linked quarter primarily due to core system conversion and merger-related expenses incurred during the second quarter 2018. In the third quarter 2018, Allegiance’s efficiency ratio increased to 63.95% from 62.14% for the third quarter 2017 and decreased from 67.05% for the second quarter 2018. Third quarter 2018 annualized returns on average assets, average equity and average tangible equity were 1.18%, 10.80% and 12.40%, respectively, compared to 0.43%, 3.90% and 4.55%, respectively, for the third quarter 2017. Annualized returns on average assets, average equity and average tangible equity for the second quarter 2018 were 1.03%, 9.55% and 11.02%, respectively.
Nine Months Ended September 30, 2018 Results
Net interest income before provision for loan losses for the nine months ended September 30, 2018 increased $6.5 million, or 8.5%, to $82.7 million from $76.2 million for the nine months ended September 30, 2017 primarily due to organic loan growth partially offset by the increased interest expense on interest-bearing liabilities. The net interest margin on a tax equivalent basis decreased 17 basis points to 4.17% for the nine months ended September 30, 2018 from 4.34% for the nine months ended September 30, 2017 primarily due to the increase in interest expense on interest-bearing liabilities driven in part by the subordinated debt issuance in December 2017.
Noninterest income for the nine months ended September 30, 2018 was $5.4 million, an increase of $1.1 million, or 25.7%, compared to $4.3 million for the nine months ended September 30, 2017.
Noninterest expense for the nine months ended September 30, 2018 increased $7.1 million, or 13.9%, to $57.7 million from $50.7 million for the nine months ended September 30, 2017. The increase in noninterest expense over the nine months ended September 30, 2017 was primarily due to expenses related to the core system conversion of $1.8 million and merger-related expenses of $821 thousand during the nine months ended September 30, 2018.
During the nine months ended September 30, 2018, Allegiance’s efficiency ratio increased to 65.52% from 62.97% for the nine months ended September 30, 2017. For the nine months ended September 30, 2018, annualized returns on average assets, average equity and average tangible equity were 1.10%, 10.16% and 11.72%, respectively, compared to 0.73%, 6.55% and 7.67%, respectively, for the nine months ended September 30, 2017.
Financial Condition
Total assets at September 30, 2018 increased $222.1 million, or 7.9%, to $3.04 billion compared to $2.81 billion at September 30, 2017 and increased $69.1 million, or 2.3%, compared to $2.97 billion at June 30, 2018.
Total loans at September 30, 2018 increased $239.4 million, or 10.9%, to $2.44 billion compared to $2.20 billion at September 30, 2017 and increased $82.3 million, or 3.5%, compared to $2.36 billion at June 30, 2018. These increases were due to strong organic loan growth within the Bank’s loan portfolio. Core loans, which exclude the mortgage warehouse portfolio, increased $274.1 million, or 12.9%, to $2.39 billion at September 30, 2018 from $2.12 billion at September 30, 2017 and increased $84.9 million, or 3.7%, from $2.31 billion at June 30, 2018.
Deposits at September 30, 2018 increased $147.2 million, or 6.4%, to $2.43 billion compared to $2.29 billion at September 30, 2017 and increased $120.0 million, or 5.2%, compared to $2.31 billion at March 31, 2018.
Asset Quality
Nonperforming assets totaled $16.9 million, or 0.56% of total assets, at September 30, 2018, compared to $14.6 million, or 0.52%, of total assets, at September 30, 2017, and $14.6 million, or 0.49% of total assets, at June 30, 2018. The allowance for loan losses was 0.97% of total loans at September 30, 2018, 1.08% of total loans at September 30, 2017 and 1.01% of total loans at June 30, 2018.
There was no provision for loan losses recorded during the third quarter 2018 due in part to the reversal of the remaining Hurricane Harvey reserve compared to $6.9 million, or 1.28% (annualized) of average loans, for the third quarter 2017, and $631 thousand, or 0.11% (annualized) of average loans, for the second quarter 2018.
Third quarter 2018 net charge-offs were $245 thousand compared to net charge-offs of $4.2 million for the third quarter 2017 and net charge-offs of $1.4 million for the second quarter 2018.
2
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 Thursday, October 25, 2018 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its third quarter 2018 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 3079335. 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, 2018, Allegiance was a $3.04 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. As of September 30, 2018, Allegiance Bank operated 16 full-service banking locations and one loan production office in 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, 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.
3
Financial Highlights
(Unaudited)
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|
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2018 |
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2017 |
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||||||||||||||
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September 30 |
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June 30 |
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March 31 |
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December 31 |
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September 30 |
|
|||||
|
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|
(Dollars in thousands) |
|
|||||||||||||||||
|
Cash and cash equivalents |
|
$ |
191,468 |
|
|
$ |
200,645 |
|
|
$ |
190,088 |
|
|
$ |
182,103 |
|
|
$ |
192,427 |
|
|
Available for sale securities |
|
|
300,115 |
|
|
|
300,897 |
|
|
|
307,411 |
|
|
|
309,615 |
|
|
|
323,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
2,440,926 |
|
|
|
2,358,675 |
|
|
|
2,290,494 |
|
|
|
2,270,876 |
|
|
|
2,201,540 |
|
|
Allowance for loan losses |
|
|
(23,586 |
) |
|
|
(23,831 |
) |
|
|
(24,628 |
) |
|
|
(23,649 |
) |
|
|
(23,722 |
) |
|
Loans, net |
|
|
2,417,340 |
|
|
|
2,334,844 |
|
|
|
2,265,866 |
|
|
|
2,247,227 |
|
|
|
2,177,818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
39,389 |
|
|
|
39,389 |
|
|
|
39,389 |
|
|
|
39,389 |
|
|
|
39,389 |
|
|
Core deposit intangibles, net |
|
|
2,688 |
|
|
|
2,883 |
|
|
|
3,079 |
|
|
|
3,274 |
|
|
|
3,469 |
|
|
Premises and equipment, net |
|
|
18,970 |
|
|
|
19,049 |
|
|
|
18,605 |
|
|
|
18,477 |
|
|
|
18,273 |
|
|
Other real estate owned |
|
|
1,801 |
|
|
|
1,710 |
|
|
|
365 |
|
|
|
365 |
|
|
|
453 |
|
|
Bank owned life insurance |
|
|
22,838 |
|
|
|
22,701 |
|
|
|
22,563 |
|
|
|
22,422 |
|
|
|
22,277 |
|
|
Other assets |
|
|
40,930 |
|
|
|
44,308 |
|
|
|
39,118 |
|
|
|
37,359 |
|
|
|
35,472 |
|
|
Total assets |
|
$ |
3,035,539 |
|
|
$ |
2,966,426 |
|
|
$ |
2,886,484 |
|
|
$ |
2,860,231 |
|
|
$ |
2,813,434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
789,705 |
|
|
$ |
749,787 |
|
|
$ |
694,880 |
|
|
$ |
683,110 |
|
|
$ |
712,951 |
|
|
Interest-bearing deposits |
|
|
1,644,086 |
|
|
|
1,563,999 |
|
|
|
1,589,922 |
|
|
|
1,530,864 |
|
|
|
1,573,664 |
|
|
Total deposits |
|
|
2,433,791 |
|
|
|
2,313,786 |
|
|
|
2,284,802 |
|
|
|
2,213,974 |
|
|
|
2,286,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowed funds |
|
|
211,569 |
|
|
|
275,569 |
|
|
|
232,569 |
|
|
|
282,569 |
|
|
|
207,569 |
|
|
Subordinated debentures |
|
|
48,839 |
|
|
|
48,779 |
|
|
|
48,719 |
|
|
|
48,659 |
|
|
|
9,277 |
|
|
Other liabilities |
|
|
13,209 |
|
|
|
8,404 |
|
|
|
8,406 |
|
|
|
8,164 |
|
|
|
7,246 |
|
|
Total liabilities |
|
|
2,707,408 |
|
|
|
2,646,538 |
|
|
|
2,574,496 |
|
|
|
2,553,366 |
|
|
|
2,510,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
13,397 |
|
|
|
13,341 |
|
|
|
13,302 |
|
|
|
13,227 |
|
|
|
13,171 |
|
|
Capital surplus |
|
|
221,762 |
|
|
|
220,665 |
|
|
|
219,760 |
|
|
|
218,408 |
|
|
|
216,943 |
|
|
Retained earnings |
|
|
98,968 |
|
|
|
90,089 |
|
|
|
82,533 |
|
|
|
74,894 |
|
|
|
71,690 |
|
|
Accumulated other comprehensive (loss) income |
|
|
(5,996 |
) |
|
|
(4,207 |
) |
|
|
(3,607 |
) |
|
|
336 |
|
|
|
923 |
|
|
Total shareholders’ equity |
|
|
328,131 |
|
|
|
319,888 |
|
|
|
311,988 |
|
|
|
306,865 |
|
|
|
302,727 |
|
|
Total liabilities and equity |
|
$ |
3,035,539 |
|
|
$ |
2,966,426 |
|
|
$ |
2,886,484 |
|
|
$ |
2,860,231 |
|
|
$ |
2,813,434 |
|
4
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|
Year-to-Date |
|
||||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||||||||||||||
|
|
|
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 |
|
$ |
32,988 |
|
|
$ |
31,846 |
|
|
$ |
30,117 |
|
|
$ |
29,747 |
|
|
$ |
28,588 |
|
|
$ |
94,951 |
|
|
$ |
80,584 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
636 |
|
|
|
646 |
|
|
|
599 |
|
|
|
563 |
|
|
|
547 |
|
|
|
1,881 |
|
|
|
1,548 |
|
|
Tax-exempt |
|
|
1,447 |
|
|
|
1,451 |
|
|
|
1,459 |
|
|
|
1,545 |
|
|
|
1,574 |
|
|
|
4,357 |
|
|
|
4,789 |
|
|
Deposits in other financial institutions |
|
|
265 |
|
|
|
250 |
|
|
|
216 |
|
|
|
183 |
|
|
|
192 |
|
|
|
731 |
|
|
|
479 |
|
|
Total interest income |
|
|
35,336 |
|
|
|
34,193 |
|
|
|
32,391 |
|
|
|
32,038 |
|
|
|
30,901 |
|
|
|
101,920 |
|
|
|
87,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, money market and savings deposits |
|
|
1,248 |
|
|
|
887 |
|
|
|
976 |
|
|
|
992 |
|
|
|
811 |
|
|
|
3,111 |
|
|
|
2,167 |
|
|
Certificates and other time deposits |
|
|
4,051 |
|
|
|
3,284 |
|
|
|
2,785 |
|
|
|
2,521 |
|
|
|
2,299 |
|
|
|
10,120 |
|
|
|
6,539 |
|
|
Borrowed funds |
|
|
1,272 |
|
|
|
1,472 |
|
|
|
1,036 |
|
|
|
854 |
|
|
|
654 |
|
|
|
3,780 |
|
|
|
2,068 |
|
|
Subordinated debt |
|
|
729 |
|
|
|
734 |
|
|
|
705 |
|
|
|
235 |
|
|
|
140 |
|
|
|
2,168 |
|
|
|
394 |
|
|
Total interest expense |
|
|
7,300 |
|
|
|
6,377 |
|
|
|
5,502 |
|
|
|
4,602 |
|
|
|
3,904 |
|
|
|
19,179 |
|
|
|
11,168 |
|
|
NET INTEREST INCOME |
|
|
28,036 |
|
|
|
27,816 |
|
|
|
26,889 |
|
|
|
27,436 |
|
|
|
26,997 |
|
|
|
82,741 |
|
|
|
76,232 |
|
|
Provision for loan losses |
|
|
— |
|
|
|
631 |
|
|
|
653 |
|
|
|
1,930 |
|
|
|
6,908 |
|
|
|
1,284 |
|
|
|
11,258 |
|
|
Net interest income after provision for loan losses |
|
|
28,036 |
|
|
|
27,185 |
|
|
|
26,236 |
|
|
|
25,506 |
|
|
|
20,089 |
|
|
|
81,457 |
|
|
|
64,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds fees |
|
|
175 |
|
|
|
214 |
|
|
|
176 |
|
|
|
158 |
|
|
|
144 |
|
|
|
565 |
|
|
|
527 |
|
|
Service charges on deposit accounts |
|
|
177 |
|
|
|
106 |
|
|
|
223 |
|
|
|
179 |
|
|
|
204 |
|
|
|
506 |
|
|
|
604 |
|
|
Gain (loss) on sale of securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
(12 |
) |
|
|
— |
|
|
|
(12 |
) |
|
Gain on sales of other real estate |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Bank owned life insurance |
|
|
137 |
|
|
|
138 |
|
|
|
141 |
|
|
|
145 |
|
|
|
146 |
|
|
|
416 |
|
|
|
440 |
|
|
Rebate from correspondent bank |
|
|
613 |
|
|
|
564 |
|
|
|
444 |
|
|
|
388 |
|
|
|
370 |
|
|
|
1,621 |
|
|
|
939 |
|
|
Other |
|
|
826 |
|
|
|
782 |
|
|
|
662 |
|
|
|
677 |
|
|
|
608 |
|
|
|
2,270 |
|
|
|
1,780 |
|
|
Total noninterest income |
|
|
1,928 |
|
|
|
1,805 |
|
|
|
1,646 |
|
|
|
1,583 |
|
|
|
1,460 |
|
|
|
5,379 |
|
|
|
4,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
12,965 |
|
|
|
12,778 |
|
|
|
12,794 |
|
|
|
12,188 |
|
|
|
11,580 |
|
|
|
38,537 |
|
|
|
32,557 |
|
|
Net occupancy and equipment |
|
|
1,281 |
|
|
|
1,333 |
|
|
|
1,272 |
|
|
|
1,398 |
|
|
|
1,325 |
|
|
|
3,886 |
|
|
|
4,054 |
|
|
Depreciation |
|
|
490 |
|
|
|
433 |
|
|
|
407 |
|
|
|
412 |
|
|
|
427 |
|
|
|
1,330 |
|
|
|
1,225 |
|
|
Data processing and software amortization |
|
|
1,226 |
|
|
|
1,356 |
|
|
|
1,053 |
|
|
|
1,850 |
|
|
|
783 |
|
|
|
3,635 |
|
|
|
2,197 |
|
|
Professional fees |
|
|
303 |
|
|
|
567 |
|
|
|
469 |
|
|
|
222 |
|
|
|
822 |
|
|
|
1,339 |
|
|
|
2,704 |
|
|
Regulatory assessments and FDIC insurance |
|
|
505 |
|
|
|
494 |
|
|
|
534 |
|
|
|
533 |
|
|
|
582 |
|
|
|
1,533 |
|
|
|
1,740 |
|
|
Core deposit intangibles amortization |
|
|
195 |
|
|
|
196 |
|
|
|
195 |
|
|
|
195 |
|
|
|
195 |
|
|
|
586 |
|
|
|
586 |
|
|
Communications |
|
|
262 |
|
|
|
259 |
|
|
|
248 |
|
|
|
252 |
|
|
|
251 |
|
|
|
769 |
|
|
|
731 |
|
|
Advertising |
|
|
351 |
|
|
|
340 |
|
|
|
330 |
|
|
|
436 |
|
|
|
302 |
|
|
|
1,021 |
|
|
|
853 |
|
|
Acquisition and merger-related expenses |
|
|
196 |
|
|
|
625 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
821 |
|
|
|
— |
|
|
Other |
|
|
1,390 |
|
|
|
1,479 |
|
|
|
1,415 |
|
|
|
1,790 |
|
|
|
1,409 |
|
|
|
4,284 |
|
|
|
4,039 |
|
|
Total noninterest expense |
|
|
19,164 |
|
|
|
19,860 |
|
|
|
18,717 |
|
|
|
19,276 |
|
|
|
17,676 |
|
|
|
57,741 |
|
|
|
50,686 |
|
|
INCOME BEFORE INCOME TAXES |
|
|
10,800 |
|
|
|
9,130 |
|
|
|
9,165 |
|
|
|
7,813 |
|
|
|
3,873 |
|
|
|
29,095 |
|
|
|
18,566 |
|
|
Provision for income taxes |
|
|
1,921 |
|
|
|
1,574 |
|
|
|
1,454 |
|
|
|
4,609 |
|
|
|
887 |
|
|
|
4,949 |
|
|
|
4,138 |
|
|
NET INCOME |
|
$ |
8,879 |
|
|
$ |
7,556 |
|
|
$ |
7,711 |
|
|
$ |
3,204 |
|
|
$ |
2,986 |
|
|
$ |
24,146 |
|
|
$ |
14,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.66 |
|
|
$ |
0.57 |
|
|
$ |
0.58 |
|
|
$ |
0.24 |
|
|
$ |
0.23 |
|
|
$ |
1.81 |
|
|
$ |
1.10 |
|
|
Diluted |
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.57 |
|
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
1.77 |
|
|
$ |
1.07 |
|
5
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|
Year-to-Date |
|
||||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||||||||||||||
|
|
|
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 |
|
$ |
8,879 |
|
|
$ |
7,556 |
|
|
$ |
7,711 |
|
|
$ |
3,204 |
|
|
$ |
2,986 |
|
|
$ |
24,146 |
|
|
$ |
14,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.66 |
|
|
$ |
0.57 |
|
|
$ |
0.58 |
|
|
$ |
0.24 |
|
|
$ |
0.23 |
|
|
$ |
1.81 |
|
|
$ |
1.10 |
|
|
Earnings per share, diluted |
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.57 |
|
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
1.77 |
|
|
$ |
1.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(A) |
|
|
1.18 |
% |
|
|
1.03 |
% |
|
|
1.09 |
% |
|
|
0.45 |
% |
|
|
0.43 |
% |
|
|
1.10 |
% |
|
|
0.73 |
% |
|
Return on average equity(A) |
|
|
10.80 |
% |
|
|
9.55 |
% |
|
|
10.10 |
% |
|
|
4.15 |
% |
|
|
3.90 |
% |
|
|
10.16 |
% |
|
|
6.55 |
% |
|
Return on average tangible equity(A)(B) |
|
|
12.40 |
% |
|
|
11.02 |
% |
|
|
11.71 |
% |
|
|
4.82 |
% |
|
|
4.55 |
% |
|
|
11.72 |
% |
|
|
7.67 |
% |
|
Tax equivalent net interest margin(C) |
|
|
4.10 |
% |
|
|
4.21 |
% |
|
|
4.20 |
% |
|
|
4.33 |
% |
|
|
4.37 |
% |
|
|
4.17 |
% |
|
|
4.34 |
% |
|
Efficiency ratio(D) |
|
|
63.95 |
% |
|
|
67.05 |
% |
|
|
65.59 |
% |
|
|
66.50 |
% |
|
|
62.14 |
% |
|
|
65.52 |
% |
|
|
62.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares, Inc. (Consolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
|
10.81 |
% |
|
|
10.78 |
% |
|
|
10.81 |
% |
|
|
10.73 |
% |
|
|
10.76 |
% |
|
|
10.81 |
% |
|
|
10.76 |
% |
|
Tangible equity to tangible assets(B) |
|
|
9.56 |
% |
|
|
9.49 |
% |
|
|
9.48 |
% |
|
|
9.38 |
% |
|
|
9.38 |
% |
|
|
9.56 |
% |
|
|
9.38 |
% |
|
Estimated common equity tier 1 capital |
|
|
11.16 |
% |
|
|
10.60 |
% |
|
|
10.82 |
% |
|
|
10.54 |
% |
|
|
10.68 |
% |
|
|
11.16 |
% |
|
|
10.68 |
% |
|
Estimated tier 1 risk-based capital |
|
|
11.51 |
% |
|
|
10.97 |
% |
|
|
11.19 |
% |
|
|
10.92 |
% |
|
|
11.07 |
% |
|
|
11.51 |
% |
|
|
11.07 |
% |
|
Estimated total risk-based capital |
|
|
13.92 |
% |
|
|
13.42 |
% |
|
|
13.72 |
% |
|
|
13.43 |
% |
|
|
12.04 |
% |
|
|
13.92 |
% |
|
|
12.04 |
% |
|
Estimated tier 1 leverage capital |
|
|
10.23 |
% |
|
|
9.78 |
% |
|
|
9.98 |
% |
|
|
9.84 |
% |
|
|
9.90 |
% |
|
|
10.23 |
% |
|
|
9.90 |
% |
|
Allegiance Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated common equity tier 1 capital |
|
|
11.23 |
% |
|
|
11.04 |
% |
|
|
10.95 |
% |
|
|
10.72 |
% |
|
|
10.93 |
% |
|
|
11.23 |
% |
|
|
10.93 |
% |
|
Estimated tier 1 risk-based capital |
|
|
11.23 |
% |
|
|
11.04 |
% |
|
|
10.95 |
% |
|
|
10.72 |
% |
|
|
10.93 |
% |
|
|
11.23 |
% |
|
|
10.93 |
% |
|
Estimated total risk-based capital |
|
|
13.64 |
% |
|
|
13.49 |
% |
|
|
13.49 |
% |
|
|
13.24 |
% |
|
|
11.91 |
% |
|
|
13.64 |
% |
|
|
11.90 |
% |
|
Estimated tier 1 leverage capital |
|
|
9.98 |
% |
|
|
9.84 |
% |
|
|
9.77 |
% |
|
|
9.67 |
% |
|
|
9.77 |
% |
|
|
9.98 |
% |
|
|
9.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,371 |
|
|
|
13,327 |
|
|
|
13,262 |
|
|
|
13,187 |
|
|
|
13,165 |
|
|
|
13,320 |
|
|
|
13,104 |
|
|
Diluted |
|
|
13,637 |
|
|
|
13,634 |
|
|
|
13,542 |
|
|
|
13,496 |
|
|
|
13,483 |
|
|
|
13,605 |
|
|
|
13,445 |
|
|
Period end shares outstanding |
|
|
13,397 |
|
|
|
13,341 |
|
|
|
13,301 |
|
|
|
13,227 |
|
|
|
13,171 |
|
|
|
13,397 |
|
|
|
13,171 |
|
|
Book value per share |
|
$ |
24.49 |
|
|
$ |
23.98 |
|
|
$ |
23.46 |
|
|
$ |
23.20 |
|
|
$ |
22.98 |
|
|
$ |
24.49 |
|
|
$ |
22.98 |
|
|
Tangible book value per share(B) |
|
$ |
21.35 |
|
|
$ |
20.81 |
|
|
$ |
20.26 |
|
|
$ |
19.97 |
|
|
$ |
19.73 |
|
|
$ |
21.35 |
|
|
$ |
19.73 |
|
|
(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 10 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. |
6
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
|
|
September 30, 2018 |
|
|
June 30, 2018 |
|
|
September 30, 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 |
|
$ |
2,384,966 |
|
|
$ |
32,988 |
|
|
|
5.49 |
% |
|
$ |
2,312,725 |
|
|
$ |
31,846 |
|
|
|
5.52 |
% |
|
$ |
2,141,546 |
|
|
$ |
28,588 |
|
|
|
5.30 |
% |
|
Securities |
|
|
304,254 |
|
|
|
2,083 |
|
|
|
2.72 |
% |
|
|
315,198 |
|
|
|
2,097 |
|
|
|
2.67 |
% |
|
|
324,901 |
|
|
|
2,121 |
|
|
|
2.59 |
% |
|
Deposits in other financial institutions |
|
|
47,518 |
|
|
|
265 |
|
|
|
2.21 |
% |
|
|
50,227 |
|
|
|
250 |
|
|
|
2.00 |
% |
|
|
53,409 |
|
|
|
192 |
|
|
|
1.43 |
% |
|
Total interest-earning assets |
|
|
2,736,738 |
|
|
$ |
35,336 |
|
|
|
5.12 |
% |
|
|
2,678,150 |
|
|
$ |
34,193 |
|
|
|
5.12 |
% |
|
|
2,519,856 |
|
|
$ |
30,901 |
|
|
|
4.87 |
% |
|
Allowance for loan losses |
|
|
(24,059 |
) |
|
|
|
|
|
|
|
|
|
|
(24,753 |
) |
|
|
|
|
|
|
|
|
|
|
(20,886 |
) |
|
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
276,997 |
|
|
|
|
|
|
|
|
|
|
|
280,852 |
|
|
|
|
|
|
|
|
|
|
|
261,524 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,989,676 |
|
|
|
|
|
|
|
|
|
|
$ |
2,934,249 |
|
|
|
|
|
|
|
|
|
|
$ |
2,760,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
181,284 |
|
|
$ |
389 |
|
|
|
0.85 |
% |
|
$ |
157,588 |
|
|
$ |
208 |
|
|
|
0.53 |
% |
|
$ |
142,429 |
|
|
$ |
127 |
|
|
|
0.35 |
% |
|
Money market and savings deposits |
|
|
530,240 |
|
|
|
859 |
|
|
|
0.64 |
% |
|
|
522,381 |
|
|
|
679 |
|
|
|
0.52 |
% |
|
|
558,087 |
|
|
|
684 |
|
|
|
0.49 |
% |
|
Certificates and other time deposits |
|
|
896,253 |
|
|
|
4,051 |
|
|
|
1.79 |
% |
|
|
827,897 |
|
|
|
3,284 |
|
|
|
1.59 |
% |
|
|
754,076 |
|
|
|
2,299 |
|
|
|
1.21 |
% |
|
Borrowed funds |
|
|
234,776 |
|
|
|
1,272 |
|
|
|
2.15 |
% |
|
|
311,185 |
|
|
|
1,472 |
|
|
|
1.90 |
% |
|
|
197,668 |
|
|
|
654 |
|
|
|
1.31 |
% |
|
Subordinated debt |
|
|
48,805 |
|
|
|
729 |
|
|
|
5.93 |
% |
|
|
48,746 |
|
|
|
734 |
|
|
|
6.04 |
% |
|
|
9,259 |
|
|
|
140 |
|
|
|
5.98 |
% |
|
Total interest-bearing liabilities |
|
|
1,891,358 |
|
|
$ |
7,300 |
|
|
|
1.53 |
% |
|
|
1,867,797 |
|
|
$ |
6,377 |
|
|
|
1.37 |
% |
|
|
1,661,519 |
|
|
$ |
3,904 |
|
|
|
0.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
761,935 |
|
|
|
|
|
|
|
|
|
|
|
741,266 |
|
|
|
|
|
|
|
|
|
|
|
786,566 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
10,179 |
|
|
|
|
|
|
|
|
|
|
|
7,778 |
|
|
|
|
|
|
|
|
|
|
|
8,960 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
2,663,472 |
|
|
|
|
|
|
|
|
|
|
|
2,616,841 |
|
|
|
|
|
|
|
|
|
|
|
2,457,045 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
326,204 |
|
|
|
|
|
|
|
|
|
|
|
317,408 |
|
|
|
|
|
|
|
|
|
|
|
303,449 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,989,676 |
|
|
|
|
|
|
|
|
|
|
$ |
2,934,249 |
|
|
|
|
|
|
|
|
|
|
$ |
2,760,494 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.59 |
% |
|
|
|
|
|
|
|
|
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
3.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin(1) |
|
|
|
|
|
$ |
28,036 |
|
|
|
4.06 |
% |
|
|
|
|
|
$ |
27,816 |
|
|
|
4.17 |
% |
|
|
|
|
|
$ |
26,997 |
|
|
|
4.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax equivalent)(2) |
|
|
|
|
|
$ |
28,292 |
|
|
|
4.10 |
% |
|
|
|
|
|
$ |
28,086 |
|
|
|
4.21 |
% |
|
|
|
|
|
$ |
27,748 |
|
|
|
4.37 |
% |
7
Financial Highlights
(Unaudited)
|
|
|
Nine Months Ended September 30, |
|
|||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
||||||||||||||||||
|
|
|
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 |
|
$ |
2,319,727 |
|
|
$ |
94,951 |
|
|
|
5.47 |
% |
|
$ |
2,038,228 |
|
|
$ |
80,584 |
|
|
|
5.29 |
% |
|
Securities |
|
|
310,709 |
|
|
|
6,238 |
|
|
|
2.68 |
% |
|
|
325,730 |
|
|
|
6,337 |
|
|
|
2.60 |
% |
|
Deposits in other financial institutions |
|
|
49,205 |
|
|
|
731 |
|
|
|
1.99 |
% |
|
|
52,150 |
|
|
|
479 |
|
|
|
1.23 |
% |
|
Total interest-earning assets |
|
|
2,679,641 |
|
|
$ |
101,920 |
|
|
|
5.09 |
% |
|
|
2,416,108 |
|
|
$ |
87,400 |
|
|
|
4.84 |
% |
|
Allowance for loan losses |
|
|
(24,254 |
) |
|
|
|
|
|
|
|
|
|
|
(19,456 |
) |
|
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
276,777 |
|
|
|
|
|
|
|
|
|
|
|
260,843 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
2,932,164 |
|
|
|
|
|
|
|
|
|
|
$ |
2,657,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
190,228 |
|
|
$ |
914 |
|
|
|
0.64 |
% |
|
$ |
136,991 |
|
|
$ |
345 |
|
|
|
0.34 |
% |
|
Money market and savings deposits |
|
|
534,925 |
|
|
|
2,197 |
|
|
|
0.55 |
% |
|
|
514,995 |
|
|
|
1,822 |
|
|
|
0.47 |
% |
|
Certificates and other time deposits |
|
|
841,849 |
|
|
|
10,120 |
|
|
|
1.61 |
% |
|
|
741,732 |
|
|
|
6,539 |
|
|
|
1.18 |
% |
|
Borrowed funds |
|
|
265,401 |
|
|
|
3,780 |
|
|
|
1.90 |
% |
|
|
282,024 |
|
|
|
2,068 |
|
|
|
0.98 |
% |
|
Subordinated debt |
|
|
48,746 |
|
|
|
2,168 |
|
|
|
5.95 |
% |
|
|
9,231 |
|
|
|
394 |
|
|
|
5.70 |
% |
|
Total interest-bearing liabilities |
|
|
1,881,149 |
|
|
$ |
19,179 |
|
|
|
1.36 |
% |
|
|
1,684,973 |
|
|
$ |
11,168 |
|
|
|
0.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
724,493 |
|
|
|
|
|
|
|
|
|
|
|
670,908 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
8,742 |
|
|
|
|
|
|
|
|
|
|
|
6,926 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
2,614,384 |
|
|
|
|
|
|
|
|
|
|
|
2,362,807 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
317,780 |
|
|
|
|
|
|
|
|
|
|
|
294,688 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
2,932,164 |
|
|
|
|
|
|
|
|
|
|
$ |
2,657,495 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.73 |
% |
|
|
|
|
|
|
|
|
|
|
3.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin |
|
|
|
|
|
$ |
82,741 |
|
|
|
4.13 |
% |
|
|
|
|
|
$ |
76,232 |
|
|
|
4.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax equivalent) |
|
|
|
|
|
$ |
83,551 |
|
|
|
4.17 |
% |
|
|
|
|
|
$ |
78,517 |
|
|
|
4.34 |
% |
8
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
||||||||||||||
|
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|||||
|
|
|
(Dollars in thousands) |
|
|||||||||||||||||
|
Period-end Loan Portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
458,434 |
|
|
$ |
452,307 |
|
|
$ |
447,168 |
|
|
$ |
457,129 |
|
|
$ |
446,029 |
|
|
Mortgage warehouse |
|
|
48,876 |
|
|
|
51,552 |
|
|
|
41,572 |
|
|
|
69,456 |
|
|
|
83,577 |
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
1,161,992 |
|
|
|
1,134,903 |
|
|
|
1,108,537 |
|
|
|
1,080,247 |
|
|
|
1,045,220 |
|
|
Commercial real estate construction and land development |
|
|
298,916 |
|
|
|
270,965 |
|
|
|
257,566 |
|
|
|
243,389 |
|
|
|
225,574 |
|
|
1-4 family residential (including home equity) |
|
|
344,342 |
|
|
|
330,053 |
|
|
|
317,842 |
|
|
|
301,219 |
|
|
|
283,399 |
|
|
Residential construction |
|
|
117,740 |
|
|
|
109,962 |
|
|
|
108,882 |
|
|
|
109,116 |
|
|
|
106,299 |
|
|
Consumer and other |
|
|
10,626 |
|
|
|
8,933 |
|
|
|
8,927 |
|
|
|
10,320 |
|
|
|
11,442 |
|
|
Total loans |
|
$ |
2,440,926 |
|
|
$ |
2,358,675 |
|
|
$ |
2,290,494 |
|
|
$ |
2,270,876 |
|
|
$ |
2,201,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
14,943 |
|
|
$ |
12,137 |
|
|
$ |
13,373 |
|
|
$ |
13,328 |
|
|
$ |
13,913 |
|
|
Accruing loans 90 or more days past due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total nonperforming loans |
|
|
14,943 |
|
|
|
12,137 |
|
|
|
13,373 |
|
|
|
13,328 |
|
|
|
13,913 |
|
|
Other real estate |
|
|
1,801 |
|
|
|
1,710 |
|
|
|
365 |
|
|
|
365 |
|
|
|
453 |
|
|
Other repossessed assets |
|
|
205 |
|
|
|
740 |
|
|
|
443 |
|
|
|
205 |
|
|
|
205 |
|
|
Total nonperforming assets |
|
$ |
16,949 |
|
|
$ |
14,587 |
|
|
$ |
14,181 |
|
|
$ |
13,898 |
|
|
$ |
14,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) |
|
$ |
245 |
|
|
$ |
1,428 |
|
|
$ |
(326 |
) |
|
$ |
2,003 |
|
|
$ |
4,196 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
6,258 |
|
|
$ |
5,983 |
|
|
$ |
6,153 |
|
|
$ |
6,437 |
|
|
$ |
5,031 |
|
|
Mortgage warehouse |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
5,006 |
|
|
|
4,917 |
|
|
|
6,466 |
|
|
|
6,110 |
|
|
|
8,097 |
|
|
Commercial real estate construction and land development |
|
|
694 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
1-4 family residential (including home equity) |
|
|
2,985 |
|
|
|
1,237 |
|
|
|
754 |
|
|
|
781 |
|
|
|
735 |
|
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Consumer and other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
50 |
|
|
Total nonaccrual loans |
|
$ |
14,943 |
|
|
$ |
12,137 |
|
|
$ |
13,373 |
|
|
$ |
13,328 |
|
|
$ |
13,913 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
0.56 |
% |
|
|
0.49 |
% |
|
|
0.49 |
% |
|
|
0.49 |
% |
|
|
0.52 |
% |
|
Nonperforming loans to total loans |
|
|
0.61 |
% |
|
|
0.51 |
% |
|
|
0.58 |
% |
|
|
0.59 |
% |
|
|
0.63 |
% |
|
Allowance for loan losses to nonperforming loans |
|
|
157.84 |
% |
|
|
196.35 |
% |
|
|
184.16 |
% |
|
|
177.44 |
% |
|
|
170.50 |
% |
|
Allowance for loan losses to total loans |
|
|
0.97 |
% |
|
|
1.01 |
% |
|
|
1.08 |
% |
|
|
1.04 |
% |
|
|
1.08 |
% |
|
Net charge-offs (recoveries) to average loans (annualized) |
|
|
0.04 |
% |
|
|
0.25 |
% |
|
(0.06) |
% |
|
|
0.36 |
% |
|
|
0.78 |
% |
|
9
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 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 |
|
|
Year-to-Date |
|
||||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||||||||||||||
|
|
|
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 |
|
$ |
328,131 |
|
|
$ |
319,888 |
|
|
$ |
311,988 |
|
|
$ |
306,865 |
|
|
$ |
302,727 |
|
|
$ |
328,131 |
|
|
$ |
302,727 |
|
|
Less: Goodwill and core deposit intangibles, net |
|
|
42,077 |
|
|
|
42,272 |
|
|
|
42,468 |
|
|
|
42,663 |
|
|
|
42,858 |
|
|
|
42,077 |
|
|
|
42,858 |
|
|
Tangible shareholders’ equity |
|
$ |
286,054 |
|
|
$ |
277,616 |
|
|
$ |
269,520 |
|
|
$ |
264,202 |
|
|
$ |
259,869 |
|
|
$ |
286,054 |
|
|
$ |
259,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period |
|
|
13,397 |
|
|
|
13,341 |
|
|
|
13,301 |
|
|
|
13,227 |
|
|
|
13,171 |
|
|
|
13,397 |
|
|
|
13,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share |
|
$ |
21.35 |
|
|
$ |
20.81 |
|
|
$ |
20.26 |
|
|
$ |
19.97 |
|
|
$ |
19.73 |
|
|
$ |
21.35 |
|
|
$ |
19.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
8,879 |
|
|
$ |
7,556 |
|
|
$ |
7,711 |
|
|
$ |
3,204 |
|
|
$ |
2,986 |
|
|
$ |
24,146 |
|
|
$ |
14,428 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity |
|
$ |
326,204 |
|
|
$ |
317,408 |
|
|
$ |
309,545 |
|
|
$ |
306,346 |
|
|
$ |
303,449 |
|
|
$ |
317,780 |
|
|
$ |
294,688 |
|
|
Less: Average goodwill and core deposit intangibles, net |
|
|
42,203 |
|
|
|
42,393 |
|
|
|
42,589 |
|
|
|
42,758 |
|
|
|
42,954 |
|
|
|
42,394 |
|
|
|
43,148 |
|
|
Average tangible shareholders’ equity |
|
$ |
284,001 |
|
|
$ |
275,015 |
|
|
$ |
266,954 |
|
|
$ |
263,588 |
|
|
$ |
260,495 |
|
|
$ |
275,386 |
|
|
$ |
251,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity |
|
|
12.40 |
% |
|
|
11.02 |
% |
|
|
11.71 |
% |
|
|
4.82 |
% |
|
|
4.55 |
% |
|
|
11.72 |
% |
|
|
7.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,035,539 |
|
|
$ |
2,966,426 |
|
|
$ |
2,886,484 |
|
|
$ |
2,860,231 |
|
|
$ |
2,813,434 |
|
|
$ |
3,035,539 |
|
|
$ |
2,813,434 |
|
|
Less: Goodwill and core deposit intangibles, net |
|
|
42,077 |
|
|
|
42,272 |
|
|
|
42,468 |
|
|
|
42,663 |
|
|
|
42,858 |
|
|
|
42,077 |
|
|
|
42,858 |
|
|
Tangible assets |
|
$ |
2,993,462 |
|
|
$ |
2,924,154 |
|
|
$ |
2,844,016 |
|
|
$ |
2,817,568 |
|
|
$ |
2,770,576 |
|
|
$ |
2,993,462 |
|
|
$ |
2,770,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets |
|
|
9.56 |
% |
|
|
9.49 |
% |
|
|
9.48 |
% |
|
|
9.38 |
% |
|
|
9.38 |
% |
|
|
9.56 |
% |
|
|
9.38 |
% |
10