EXHIBIT 99.1
Allegiance Bancshares, Inc. Reports Solid Third Quarter 2015 Earnings
- Diluted earnings per common share of $0.40 for the third quarter 2015 compared to $0.36 for the second quarter 2015
- Core loans, excluding mortgage warehouse loans and loans held for sale, increased 4.7% for the third quarter 2015 from the second quarter 2015
- Completed successful Initial Public Offering on October 7, 2015
HOUSTON, Oct. 30, 2015 (GLOBE NEWSWIRE) -- Allegiance Bancshares, Inc. (NASDAQ:ABTX), the holding company of Allegiance Bank (collectively, "Allegiance"), reported net income attributable to common stockholders for the quarter ended September 30, 2015 of $4.0 million or $0.40 per diluted common share, compared with $3.6 million or $0.36 per diluted common share for June 30, 2015, an increase in net income attributable to common stockholders of 11.7% and diluted earnings per common share of 11.1%.
"We are extremely proud to have recently completed an initial public offering of 2,990,000 million shares generating net proceeds of approximately $57.2 million. We are delighted with the support we received from investors during the IPO process and with the quality of our new stockholders," said George Martinez, Allegiance's Chairman and Chief Executive Officer.
"We are also pleased to report strong third quarter earnings and continued organic growth. Our super-community banking strategy remains our engine of growth in providing an exceptional customer experience to our owner-operated businesses," concluded Martinez.
Results of operations for the three months ended September 30, 2015
For the three months ended September 30, 2015, net income increased 8.7% to $4.2 million compared to net income of $3.9 million for the three months ended June 30, 2015. Net income attributable to common stockholders for the three months ended September 30, 2015 increased 11.7% to $4.0 million compared to net income attributable to common stockholders of $3.6 million for the linked quarter June 30, 2015. Net income attributable to common stockholders for the three months ended September 30, 2015 increased $2.0 million, or 100.2% compared with the same period in 2014. Diluted earnings per common share increased 42.9% to $0.40 for the three months ended September 30, 2015 from $0.28 for the same period in 2014. Excluding $173 thousand in final dividends paid on our Series A and B preferred stock, redeemed in July 2015, our diluted earnings per common share would have been $0.42 for the third quarter of 2015.
Annualized returns on average assets, average common equity and average tangible common equity for the three months ended September 30, 2015 were 0.85%, 8.27% and 10.77%, respectively. Allegiance's efficiency ratio increased to 65.04% for the three months ended September 30, 2015 compared to 64.90% for the three months ended June 30, 2015 and decreased from 68.65% for the same period in 2014.
Net interest income before provision for loan losses increased 3.4% to $20.4 million for the three months ended September 30, 2015, compared with $19.7 million during the three months ended June 30, 2015, primarily due to a $119.6 million or 7.2% increase in average interest-earning assets. Net interest income before provision for loan losses for the three months ended September 30, 2015 increased $8.3 million, or 68.0%, from $12.1 million for the same period in 2014. This increase was primarily due to a 60.8% increase in average interest-earning assets as a result of the acquisition of F&M Bancshares, Inc. ("F&M") on January 1, 2015, as well as organic growth within Allegiance's loan portfolio. The net interest margin on a tax equivalent basis for the three months ended September 30, 2015 decreased to 4.61% (or 4.44% excluding acquisition accounting adjustments) from 4.79% (or 4.49% excluding acquisition accounting adjustments) for the three months ended June 30, 2015 primarily due to a decrease in acquisition accounting adjustments recorded during the third quarter of 2015 compared to the second quarter 2015. The net interest margin on a tax equivalent basis increased for the third quarter of 2015 compared with 4.35% for the same period in 2014.
On a linked quarter basis, noninterest income increased $254 thousand or 26.8% primarily due to gains on the sale of loans during the third quarter of 2015. Noninterest income increased $596 thousand or 98.5% to $1.2 million for the three months ended September 30, 2015, compared with $605 thousand for the same period in 2014. This increase was primarily due to increased fees and service charges resulting from the additional accounts acquired in the F&M acquisition consummated at the beginning of the first quarter of 2015.
Noninterest expense for the three months ended September 30, 2015 increased $479 thousand or 3.6% compared to the linked quarter primarily due to additional salaries and benefits related to the recent hiring of several key income-producing employees. Noninterest expense increased $5.1 million or 58.8% to $13.9 million for the three months ended September 30, 2015, compared with $8.8 million for the same period in 2014. This increase was primarily due to additional noninterest expenses associated with the acquisition of F&M during the first quarter of 2015.
Financial Condition
Total loans increased $54.8 million or 3.5% to $1.62 billion at September 30, 2015 from $1.56 billion at June 30, 2015 due to strong organic loan growth within Allegiance's loan portfolio. During the third quarter of 2015, core loans, which exclude the mortgage warehouse portfolio and loans held for sale, increased $68.7 million, but were partially offset by a decrease of $15.3 million in the mortgage warehouse portfolio, compared to the second quarter of 2015. Total loans at September 30, 2015 increased $651.5 million or 67.5%, compared with $964.9 million at September 30, 2014, primarily due to loans acquired in the F&M acquisition as well as organic growth within Allegiance's portfolio.
Average loans increased $93.7 million or 6.3% to $1.57 billion for the quarter ended September 30, 2015 from $1.48 billion for the quarter ended June 30, 2015. Average loans increased $632.2 million or 67.2% for the quarter ended September 30, 2015 from $940.3 million for the same period in 2014.
Deposits increased $31.2 million or 1.9% to $1.66 billion at September 30, 2015 from $1.63 billion at June 30, 2015. Deposits at September 30, 2015 increased $550.8 million or 49.8%, compared with $1.11 billion at September 30, 2014, primarily due to the deposits acquired in the F&M acquisition.
Average deposits increased $28.3 million or 1.8% to $1.63 billion for the quarter ended September 30, 2015 from $1.60 billion for the quarter ended June 30, 2015. Average deposits increased $549.7 million or 50.7% for the quarter ended September 30, 2015 from $1.08 billion for the same period of 2014.
During the third quarter of 2015, Allegiance redeemed all of the preferred stock outstanding pursuant to the U.S. Treasury's Troubled Asset Relief Program inherited in the F&M acquisition for an aggregate redemption price of $11.7 million.
Asset Quality
Nonperforming assets totaled $6.3 million or 0.31% of total assets at September 30, 2015, compared with $6.2 million or 0.32% of total assets at June 30, 2015, and $2.6 million or 0.21% of total assets at September 30, 2014. The allowance for loan losses was 0.69% of total loans at September 30, 2015, 0.66% of total loans at June 30, 2015 and 0.80% of total loans at September 30, 2014.
The provision for loan losses was $1.5 million, or 0.39% of average loans, for the three months ended September 30, 2015, compared with $1.4 million, or 0.39% of average loans, for the three months ended June 30, 2015 and $750 thousand, or 0.32% of average loans, for the three months ended September 30, 2014.
Net charge offs were $638 thousand, or 0.16% of average loans, for the three months ended September 30, 2015, compared with $48 thousand, or 0.01% of average loans, for the three months ended June 30, 2015 and $470 thousand, or 0.20% of average loans, for the three months ended September 30, 2014.
GAAP Reconciliation of Non-GAAP Financial Measures
Allegiance's management uses certain non-GAAP financial measures to evaluate its performance. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the tangible common equity to tangible assets ratio. Please refer to the GAAP Reconciliation and Management's Explanation of non-GAAP Financial Measures at the end 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 Monday, November 2, 2015 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its third quarter 2015 earnings. Individuals and investment professionals may participate in the call by dialing (855) 717-7672. The conference ID number is 64020597.
Alternatively, a simultaneous webcast may be accessed via the Investor Relations section of Allegiance's website at www.allegiancebank.com, under Upcoming Events.
Allegiance Bancshares, Inc.
As of September 30, 2015, Allegiance Bancshares Inc. is a $2.01 billion 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 Bank operates 16 full-service banking locations in the Houston metropolitan area and two full-service banking locations in Central Texas. Visit www.allegiancebank.com for more information.
Forward Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains 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 the information concerning Allegiance's future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Allegiance's control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Allegiance can: continue to develop and maintain new and existing customer and community relationships; successfully implement its growth strategy, including identifying suitable acquisition targets and integrating the businesses of acquired companies and banks; continue to sustain its current internal growth rate; provide quality and competitive products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its performance objectives. These and various other factors are discussed in Allegiance's Final Prospectus dated October 7, 2015, filed pursuant to Rule 424(b)(4) and other reports and statements Allegiance has filed with the SEC. Copies of such filings are available for download free of charge from the Investor Relations section of the website at www.allegiancebank.com, under Financial Information, SEC Filings.
Allegiance Bancshares, Inc. | |||||
Financial Highlights | |||||
(Unaudited) | |||||
2015 | 2014 | ||||
September 30 | June 30 | March 31 | December 31 | September 30 | |
(Dollars in thousands) | |||||
Cash and cash equivalents | $ 144,590 | $ 138,685 | $ 252,558 | $ 167,540 | $ 159,737 |
Available for sale securities | 154,546 | 151,662 | 96,910 | 84,962 | 88,914 |
Total Loans (including loans held for sale) | 1,616,416 | 1,561,657 | 1,444,732 | 1,002,054 | 964,923 |
Allowance for loan losses | (11,204) | (10,312) | (8,940) | (8,246) | (7,740) |
Loans, net | 1,605,212 | 1,551,345 | 1,435,792 | 993,808 | 957,183 |
Goodwill | 39,389 | 39,389 | 39,389 | 11,144 | 11,144 |
Core deposit intangibles, net | 5,438 | 5,645 | 5,852 | 1,747 | 1,822 |
Premises and equipment, net | 18,838 | 18,887 | 18,510 | 10,969 | 11,091 |
Bank owned life insurance | 21,040 | 20,872 | 20,699 | -- | -- |
Other assets | 23,297 | 18,671 | 15,176 | 9,838 | 8,434 |
Total assets | $ 2,012,350 | $ 1,945,156 | $ 1,884,886 | $ 1,280,008 | $ 1,238,325 |
Noninterest-bearing deposits | $ 560,773 | $ 556,502 | $ 554,624 | $ 373,795 | $ 365,604 |
Interest-bearing deposits | 1,095,775 | 1,068,822 | 1,089,095 | 759,889 | 740,139 |
Total deposits | 1,656,548 | 1,625,324 | 1,643,719 | 1,133,684 | 1,105,743 |
Short-term borrowings | 115,000 | 75,000 | -- | -- | -- |
Subordinated debentures | 9,062 | 9,032 | 8,953 | -- | -- |
Other borrowed funds | 28,069 | 28,069 | 28,069 | 10,069 | 10,000 |
Other liabilities | 7,628 | 5,901 | 5,121 | 4,477 | 4,192 |
Total liabilities | 1,816,307 | 1,743,326 | 1,685,862 | 1,148,230 | 1,119,935 |
Preferred equity | -- | 11,550 | 11,550 | -- | -- |
Common equity | 196,043 | 190,280 | 187,474 | 131,778 | 118,390 |
Stockholders' equity | 196,043 | 201,830 | 199,024 | 131,778 | 118,390 |
Total liabilities and equity | $ 2,012,350 | $ 1,945,156 | $ 1,884,886 | $ 1,280,008 | $ 1,238,325 |
Allegiance Bancshares, Inc. | |||||||
Financial Highlights | |||||||
(Unaudited) | |||||||
Three Months Ended | Year-to-Date | ||||||
2015 | 2014 | 2015 | 2014 | ||||
September 30 | June 30 | March 31 | December 31 | September 30 | September 30 | September 30 | |
(Dollars in thousands) | |||||||
INTEREST INCOME: | |||||||
Loans, including fees | $ 21,627 | $ 21,079 | $ 20,306 | $ 13,534 | $ 13,011 | $ 63,012 | $ 36,709 |
Securities | 975 | 721 | 439 | 450 | 472 | 2,135 | 1,401 |
Deposits in other financial institutions | 43 | 50 | 74 | 68 | 70 | 167 | 243 |
Total interest income | 22,645 | 21,850 | 20,819 | 14,052 | 13,553 | 65,314 | 38,353 |
INTEREST EXPENSE: | |||||||
Demand, money market and savings deposits | 508 | 482 | 456 | 338 | 307 | 1,446 | 923 |
Certificates and other time deposits | 1,324 | 1,254 | 1,200 | 1,046 | 1,026 | 3,778 | 3,034 |
Short-term borrowings | 47 | 2 | -- | -- | -- | 49 | -- |
Subordinated debt | 114 | 162 | 163 | -- | -- | 439 | -- |
Other borrowed funds | 245 | 216 | 230 | 78 | 76 | 691 | 151 |
Total interest expense | 2,238 | 2,116 | 2,049 | 1,462 | 1,409 | 6,403 | 4,108 |
NET INTEREST INCOME | 20,407 | 19,734 | 18,770 | 12,590 | 12,144 | 58,911 | 34,245 |
Provision for loan losses | 1,530 | 1,420 | 683 | 500 | 750 | 3,633 | 1,650 |
Net interest income after provision for loan losses | 18,877 | 18,314 | 18,087 | 12,090 | 11,394 | 55,278 | 32,595 |
NONINTEREST INCOME: | |||||||
Nonsufficient funds fees | 179 | 168 | 165 | 120 | 118 | 512 | 335 |
Service charges on deposit accounts | 163 | 176 | 175 | 112 | 125 | 514 | 378 |
Gains (losses) on sales of other real estate | 1 | -- | (6) | -- | -- | (5) | 188 |
Gains on sales of loans | 235 | -- | -- | -- | -- | 235 | -- |
Other | 623 | 603 | 532 | 449 | 362 | 1,758 | 1,025 |
Total noninterest income | 1,201 | 947 | 866 | 681 | 605 | 3,014 | 1,926 |
NONINTEREST EXPENSE: | |||||||
Salaries and employee benefits | 8,996 | 8,481 | 8,942 | 5,682 | 4,994 | 26,419 | 14,497 |
Net occupancy and equipment | 1,289 | 1,274 | 1,084 | 847 | 888 | 3,647 | 2,469 |
Data processing and software amortization | 841 | 827 | 626 | 428 | 397 | 2,294 | 1,230 |
Professional fees | 343 | 397 | 480 | 794 | 973 | 1,220 | 1,502 |
Regulatory assessments and FDIC insurance | 296 | 320 | 374 | 211 | 214 | 990 | 636 |
Core deposit intangibles amortization | 208 | 207 | 208 | 74 | 74 | 623 | 222 |
Depreciation | 414 | 409 | 367 | 295 | 286 | 1,190 | 789 |
Communications | 300 | 358 | 334 | 224 | 154 | 992 | 460 |
Advertising | 188 | 184 | 138 | 207 | 116 | 510 | 394 |
Other | 1,026 | 965 | 1,033 | 676 | 656 | 3,024 | 1,822 |
Total noninterest expense | 13,901 | 13,422 | 13,586 | 9,438 | 8,752 | 40,909 | 24,021 |
INCOME BEFORE INCOME TAXES | 6,177 | 5,839 | 5,367 | 3,333 | 3,247 | 17,383 | 10,500 |
Provision for income taxes | 1,957 | 1,956 | 1,896 | 1,033 | 1,226 | 5,809 | 3,795 |
NET INCOME | 4,220 | 3,883 | 3,471 | 2,300 | 2,021 | 11,574 | 6,705 |
Preferred stock dividends | 173 | 260 | 126 | -- | -- | 559 | -- |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 4,047 | $ 3,623 | $ 3,345 | $ 2,300 | $ 2,021 | $ 11,015 | $ 6,705 |
Allegiance Bancshares, Inc. | ||||||||||||||
Financial Highlights | ||||||||||||||
(Unaudited) | ||||||||||||||
Three Months Ended | Year-to-Date | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
September 30 | June 30 | March 31 | December 31 | September 30 | September 30 | September 30 | ||||||||
(Dollars and share amounts in thousands) | ||||||||||||||
Net income | $ 4,220 | $ 3,883 | $ 3,471 | $ 2,300 | $ 2,021 | $ 11,574 | $ 6,705 | |||||||
Net income attributable to common stockholders | $ 4,047 | $ 3,623 | $ 3,345 | $ 2,300 | $ 2,021 | $ 11,015 | $ 6,705 | |||||||
Earnings per common share, basic | $ 0.41 | $ 0.37 | $ 0.34 | $ 0.33 | $ 0.29 | $ 1.12 | $ 0.96 | |||||||
Earnings per common share, diluted | $ 0.40 | $ 0.36 | $ 0.33 | $ 0.32 | $ 0.28 | $ 1.10 | $ 0.94 | |||||||
Return on average assets (A) | 0.85% | 0.84% | 0.77% | 0.73% | 0.64% | 0.82% | 0.76% | |||||||
Return on average common equity (A) | 8.27% | 8.20% | 7.56% | 7.56% | 6.82% | 7.75% | 7.79% | |||||||
Return on average tangible common equity (A) (B) | 10.77% | 10.04% | 9.62% | 8.46% | 7.67% | 10.16% | 8.79% | |||||||
Tax equivalent net interest margin (C) | 4.61% | 4.79% | 4.72% | 4.37% | 4.35% | 4.71% | 4.30% | |||||||
Efficiency ratio(D) | 65.04% | 64.90% | 69.19% | 71.12% | 68.65% | 66.31% | 66.41% | |||||||
Liquidity and Capital Ratios | ||||||||||||||
Equity to assets | 9.74% | 10.38% | 10.56% | 10.30% | 9.56% | 9.74% | 9.56% | |||||||
Common equity Tier 1 capital | 8.61% | 8.68% | 8.98% | N/A | N/A | 8.61% | N/A | |||||||
Tier 1 risk-based capital | 9.12% | 9.88% | 10.25% | 11.96% | 10.85% | 9.12% | 10.85% | |||||||
Total risk-based capital | 9.75% | 10.48% | 10.80% | 12.80% | 11.65% | 9.75% | 11.65% | |||||||
Tier 1 leverage capital | 8.37% | 9.34% | 9.22% | 9.55% | 8.73% | 8.37% | 8.73% | |||||||
Tangible common equity to tangible assets(B) | 7.69% | 7.64% | 7.73% | 9.38% | 8.60% | 7.69% | 8.60% | |||||||
Other Data | ||||||||||||||
Shares used in computed earnings per common share | ||||||||||||||
Basic | 9,823 | 9,825 | 9,823 | 6,995 | 6,979 | 9,823 | 6,972 | |||||||
Diluted | 10,003 | 10,004 | 9,999 | 7,169 | 7,154 | 10,001 | 7,133 | |||||||
Period end shares outstanding | 9,823 | 9,823 | 9,824 | 7,477 | 6,981 | 9,823 | 6,981 | |||||||
Book value per common share | $ 19.96 | $ 19.37 | $ 19.08 | $ 17.62 | $ 16.96 | $ 19.96 | $ 16.96 | |||||||
Tangible book value per common share(B) | $ 15.39 | $ 14.79 | $ 14.48 | $ 15.90 | $ 15.10 | $ 15.39 | $ 15.10 | |||||||
(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 at the end 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 assets and securities. Additionally, taxes and provision for loan losses are not part of this calculation. |
Allegiance Bancshares, Inc. | |||||||||
Financial Highlights | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | |||||||
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 | $ 1,572,441 | $ 21,627 | 5.46% | $ 1,478,752 | $ 21,079 | 5.72% | $ 940,284 | $ 13,011 | 5.49% |
Securities | 162,308 | 975 | 2.38% | 127,882 | 721 | 2.26% | 97,079 | 472 | 1.93% |
Deposits in other financial institutions | 53,759 | 43 | 0.31% | 62,247 | 50 | 0.32% | 74,935 | 70 | 0.37% |
Total interest-earning assets | 1,788,508 | $ 22,645 | 5.02% | 1,668,881 | $ 21,850 | 5.25% | 1,112,298 | $ 13,553 | 4.83% |
Allowance for loan losses | (10,618) | (9,265) | (7,617) | ||||||
Noninterest-earning assets | 201,952 | 195,341 | 110,369 | ||||||
Total assets | $ 1,979,842 | $ 1,854,957 | $ 1,215,050 | ||||||
Liabilities and Stockholders' Equity | |||||||||
Interest-Bearing Liabilities: | |||||||||
Interest-bearing demand deposits | $ 97,488 | $ 40 | 0.16% | $ 101,029 | $ 40 | 0.16% | $ 69,967 | $ 29 | 0.16% |
Money market and savings deposits | 432,654 | 468 | 0.43% | 420,992 | 442 | 0.42% | 264,720 | 278 | 0.42% |
Certificates and other time deposits | 547,884 | 1,324 | 0.96% | 548,075 | 1,254 | 0.92% | 402,088 | 1,026 | 1.01% |
Short-term borrowings | 106,533 | 47 | 0.17% | 4,451 | 2 | 0.16% | -- | -- | 0.00% |
Subordinated debt | 9,060 | 114 | 5.01% | 8,981 | 162 | 7.23% | -- | -- | 0.00% |
Other borrowed funds | 28,069 | 245 | 3.46% | 28,415 | 216 | 3.04% | 10,000 | 76 | 3.00% |
Total interest-bearing liabilities | 1,221,688 | $ 2,238 | 0.73% | 1,111,943 | $ 2,116 | 0.76% | 746,775 | $ 1,409 | 0.75% |
Noninterest-Bearing liabilities: | |||||||||
Noninterest-bearing demand deposits | 555,060 | 534,688 | 346,616 | ||||||
Other liabilities | 7,292 | 6,869 | 4,104 | ||||||
Total liabilities | 1,784,040 | 1,653,500 | 1,097,495 | ||||||
Stockholders' equity | 195,802 | 201,457 | 117,555 | ||||||
Total liabilities and stockholders' equity | $ 1,979,842 | $ 1,854,957 | $ 1,215,050 | ||||||
Net interest rate spread | 4.29% | 4.49% | 4.08% | ||||||
Net interest income and margin | $ 20,407 | 4.53% | $ 19,734 | 4.74% | $ 12,144 | 4.33% | |||
Net interest income and margin (tax equivalent) | $ 20,770 | 4.61% | $ 19,923 | 4.79% | $ 12,207 | 4.35% |
Allegiance Bancshares, Inc. | ||||||
Financial Highlights | ||||||
(Unaudited) | ||||||
Year-to-Date | ||||||
September 30, 2015 | September 30, 2014 | |||||
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 | $ 1,489,690 | $ 63,012 | 5.66% | $ 895,774 | $ 36,709 | 5.48% |
Securities | 127,863 | 2,135 | 2.23% | 92,034 | 1,401 | 2.04% |
Deposits in other financial institutions | 72,182 | 167 | 0.31% | 82,765 | 243 | 0.39% |
Total interest-earning assets | 1,689,735 | $ 65,314 | 5.17% | 1,070,573 | $ 38,353 | 4.79% |
Allowance for loan losses | (9,466) | (7,037) | ||||
Noninterest-earning assets | 210,039 | 109,543 | ||||
Total assets | $ 1,890,308 | $ 1,173,079 | ||||
Liabilities and Stockholders' Equity | ||||||
Interest-Bearing Liabilities: | ||||||
Interest-bearing demand deposits | $ 101,636 | $ 120 | 0.16% | $ 65,588 | $ 105 | 0.21% |
Money market and savings deposits | 419,814 | 1,326 | 0.42% | 253,725 | 818 | 0.43% |
Certificates and other time deposits | 548,411 | 3,778 | 0.92% | 407,718 | 3,034 | 0.99% |
Short-term borrowings | 37,384 | 49 | 0.17% | -- | -- | 0.00% |
Subordinated debt | 8,981 | 439 | 6.54% | -- | -- | 0.00% |
Other borrowed funds | 28,069 | 691 | 3.29% | 6,844 | 151 | 2.94% |
Total interest-bearing liabilities | 1,144,295 | $ 6,403 | 0.75% | 733,875 | $ 4,108 | 0.75% |
Noninterest-Bearing liabilities: | ||||||
Noninterest-bearing demand deposits | 540,499 | 320,897 | ||||
Other liabilities | 7,153 | 3,278 | ||||
Total liabilities | 1,691,947 | 1,058,050 | ||||
Stockholders' equity | 198,361 | 115,029 | ||||
Total liabilities and stockholders' equity | $ 1,890,308 | $ 1,173,079 | ||||
Net interest rate spread | 4.42% | 4.04% | ||||
Net interest income and margin | $ 58,911 | 4.66% | $ 34,245 | 4.28% | ||
Net interest income and margin (tax equivalent) | $ 59,533 | 4.71% | $ 34,399 | 4.30% |
Allegiance Bancshares, Inc. | |||||
Financial Highlights | |||||
(Unaudited) | |||||
Three Months Ended | |||||
2015 | 2014 | ||||
September 30 | June 30 | March 31 | December 31 | September 30 | |
(Dollars in thousands) | |||||
Period-end Loan Portfolio: | |||||
Loans held for sale | $ 27,004 | $ 25,629 | $ 33,409 | $ -- | $ -- |
Commercial and industrial | 367,341 | 346,703 | 325,598 | 242,034 | 212,648 |
Mortgage warehouse | 65,928 | 81,255 | 36,912 | 28,329 | 29,456 |
Real Estate: | |||||
Commercial real estate (including multi-family residential) | 710,857 | 678,979 | 640,391 | 429,986 | 432,787 |
Commercial real estate construction and land development | 151,369 | 140,437 | 135,760 | 85,484 | 86,647 |
1-4 family residential (including home equity) | 185,473 | 178,635 | 174,070 | 135,127 | 126,477 |
Residential construction | 95,212 | 94,167 | 86,412 | 72,402 | 67,852 |
Consumer and other | 13,232 | 15,852 | 12,180 | 8,692 | 9,056 |
Total loans | $ 1,616,416 | $ 1,561,657 | $ 1,444,732 | $ 1,002,054 | $ 964,923 |
Asset Quality: | |||||
Nonaccrual loans | $ 6,185 | $ 5,722 | $ 6,852 | $ 3,184 | $ 2,616 |
Accruing loans 90 or more days past due | -- | -- | -- | -- | -- |
Total nonperforming loans | 6,185 | 5,722 | 6,852 | 3,184 | 2,616 |
Other real estate | -- | 21 | -- | -- | -- |
Other repossessed assets | 131 | 491 | -- | -- | -- |
Total nonperforming assets | $ 6,316 | $ 6,234 | $ 6,852 | $ 3,184 | $ 2,616 |
Net charge-offs (recoveries) | $ 638 | $ 48 | $ (11) | $ (7) | $ 473 |
Nonaccrual loans: | |||||
Loans held for sale | $ 498 | $ 1,130 | $ 782 | $ -- | $ -- |
Commercial and industrial | 3,477 | 3,186 | 4,204 | 1,527 | 1,666 |
Warehouse lending | -- | -- | -- | -- | -- |
Real Estate: | |||||
Commercial real estate (including multi-family residential) | 1,783 | 974 | 1,293 | 1,653 | 945 |
Commercial real estate construction and land development | -- | -- | 246 | -- | -- |
1-4 family residential (including home equity) | 341 | 343 | 296 | -- | -- |
Residential construction | -- | -- | -- | -- | -- |
Consumer and other | 86 | 89 | 31 | 4 | 5 |
Total nonaccrual loans | $ 6,185 | $ 5,722 | $ 6,852 | $ 3,184 | $ 2,616 |
Asset Quality Ratios: | |||||
Nonperforming assets to total assets | 0.31% | 0.32% | 0.36% | 0.25% | 0.21% |
Nonperforming loans to total loans | 0.38% | 0.37% | 0.47% | 0.32% | 0.27% |
Allowance for loan losses to nonperforming loans | 181.15% | 180.22% | 130.47% | 258.98% | 295.89% |
Allowance for loan losses to total loans | 0.69% | 0.66% | 0.62% | 0.82% | 0.80% |
Provision for loan losses to average loans (annualized) | 0.39% | 0.39% | 0.20% | 0.20% | 0.32% |
Net charge-offs to average loans (annualized) | 0.16% | 0.01% | 0.00% | 0.00% | 0.20% |
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. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the tangible common equity to tangible assets ratio 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. Allegiance believes these non-GAAP financial measures provide information useful to management and investors that is supplementary to our financial condition and results of operations computed in accordance with GAAP. 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 | ||||||
2015 | 2014 | 2015 | 2014 | ||||
September 30 | June 30 | March 31 | December 31 | September 30 | September 30 | September 30 | |
(Dollars and share amounts in thousands) | |||||||
Total Stockholders' equity | $ 196,043 | $ 201,830 | $ 199,024 | $ 131,778 | $ 118,390 | $ 196,043 | $ 118,390 |
Less: Goodwill and core deposit intangibles, net | 44,827 | 45,034 | 45,241 | 12,891 | 12,966 | 44,827 | 12,966 |
Tangible stockholders' equity | $ 151,216 | $ 156,796 | $ 153,783 | $ 118,887 | $ 105,424 | $ 151,216 | $ 105,424 |
Less: Preferred Stock | -- | 11,550 | 11,550 | -- | -- | -- | -- |
Tangible common stockholders' equity | $ 151,216 | $ 145,246 | $ 142,233 | $ 118,887 | $ 105,424 | $ 151,216 | $ 105,424 |
Shares outstanding at end of period | 9,823 | 9,823 | 9,824 | 7,477 | 6,981 | 9,823 | 6,981 |
Tangible book value per common share | $ 15.39 | $ 14.79 | $ 14.48 | $ 15.90 | $ 15.10 | $ 15.39 | $ 15.10 |
Net income attributable to common stockholders | $ 4,047 | $ 3,623 | $ 3,345 | $ 2,300 | $ 2,021 | $ 11,015 | $ 6,705 |
Average common stockholders equity | 194,045 | 189,907 | 186,294 | 120,706 | 117,555 | 190,111 | 115,029 |
Less: Average goodwill and core deposit intangibles, net | 44,929 | 45,150 | 45,260 | 12,927 | 13,005 | 45,112 | 13,034 |
Average tangible common stockholders' equity | $ 149,116 | $ 144,757 | $ 141,034 | $ 107,779 | $ 104,550 | $ 144,999 | $ 101,995 |
Return on average tangible common equity | 10.77% | 10.04% | 9.62% | 8.46% | 7.67% | 10.16% | 8.79% |
Total assets | $ 2,012,350 | $ 1,945,156 | $ 1,884,886 | $ 1,280,008 | $ 1,238,325 | $ 2,012,350 | $ 1,238,325 |
Less: Goodwill and core deposit intangibles, net | 44,827 | 45,034 | 45,241 | 12,891 | 12,966 | 44,827 | 12,966 |
Tangible assets | $ 1,967,523 | $ 1,900,122 | $ 1,839,645 | $ 1,267,117 | $ 1,225,359 | $ 1,967,523 | $ 1,225,359 |
Tangible common equity to tangible assets | 7.69% | 7.64% | 7.73% | 9.38% | 8.60% | 7.69% | 8.60% |
CONTACT: Allegiance Bancshares, Inc. ir@allegiancebank.com