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
FOURTH QUARTER AND FULL YEAR 2019 RESULTS
| • | Record diluted earnings per share of $0.67 for the fourth quarter 2019 and $2.47 for the year 2019 |
| • | Deposit growth of $405.6 million, or 11.1%, for the year 2019 |
| • | Declared first quarterly dividend of $0.10 per share |
HOUSTON, January 29, 2020 - Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $14.0 million and diluted earnings per share of $0.67 for the fourth quarter 2019 compared to net income of $13.2 million and diluted earnings per share of $0.59 for the fourth quarter 2018. Net income for the year ended December 31, 2019 was $53.0 million, or $2.47 per diluted share, compared to net income of $37.3 million, or $2.37 per diluted share, for the year ended December 31, 2018. The year ended December 31, 2019 results included $1.4 million of pre-tax severance expense and $1.3 million of pre-tax acquisition and merger-related expenses. The year ended December 31, 2018 results included $1.7 million of pre-tax acquisition and merger-related expenses.
“2019 was another successful year for Allegiance,” said Steve Retzloff, Allegiance’s Chief Executive Officer. “We reported record quarterly and annual diluted earnings per share driven by core loan growth, deposit growth and continued excellent asset quality. The results are indicative of the dedication, hard work and commitment of our bankers to enhance our business capabilities and technology to best serve our customers and communities in which we operate,” commented Retzloff.
“We are excited to announce Allegiance’s first quarterly cash dividend of $0.10 per share to our shareholders. This dividend represents a significant milestone for Allegiance and along with the continuation of our share repurchase program highlights the profitability and solid capital position that we have achieved since our founding and reflects our commitment to long-term shareholder value,” continued Retzloff.
“As Houston’s largest locally-headquartered community bank, we feel very well positioned for 2020. We entered the year with strong fundamentals, momentum and a clear focus on our priorities. We are confident that our experienced team of bankers are the best in the business who will continue to execute our strategy and generate great customer relationships while driving solid returns for Allegiance and our shareholders," concluded Retzloff.
Fourth Quarter 2019 Results
Net interest income before the provision for loan losses in the fourth quarter 2019 decreased $1.3 million, or 2.9%, to $44.5 million from $45.8 million for the fourth quarter 2018. Net interest income before provision for loan losses for the fourth quarter 2019 decreased from $44.8 million in the third quarter 2019. These decreases were primarily due to changes in market interest rates, acquisition accounting accretion as well as changes in the volume and relative mix of the underlying assets and liabilities. The net interest margin on a tax equivalent basis decreased 34 basis points to 4.11% for the fourth quarter 2019 from 4.45% for the fourth quarter 2018 and decreased 5 basis points from 4.16% for the third quarter 2019. Core net interest margin on a tax equivalent basis excludes the impact of acquisition accounting adjustments and was 3.94% for the fourth quarter 2019 compared to 4.16% for the fourth quarter 2018 and 3.97% for the third quarter 2019. Please refer to the non-GAAP reconciliation on page 10.
Noninterest income for the fourth quarter 2019 was $3.4 million, an increase of $1.1 million, or 45.7%, compared to $2.3 million for the fourth quarter 2018 and increased $511 thousand, or 17.7%, compared to $2.9 million for the third quarter 2019. Noninterest income for the fourth quarter 2019 included $613 thousand of gain on the sale of securities.
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Noninterest expense for the fourth quarter 2019 increased $385 thousand, or 1.3%, to $29.4 million from $29.0 million for the fourth quarter 2018 and decreased $578 thousand compared to the third quarter 2019.
In the fourth quarter 2019, Allegiance’s efficiency ratio was 62.20% compared to 62.88% for the third quarter 2019 and 60.30% for the fourth quarter 2018. Fourth quarter 2019 annualized returns on average assets, average equity and average tangible equity were 1.13%, 7.81% and 11.96%, respectively, compared to 0.98%, 6.73% and 10.33%, respectively, for the third quarter 2019. Annualized returns on average assets, average equity and average tangible equity for the fourth quarter 2018 were 1.12%, 7.49% and 11.66%, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 10.
Year Ended December 31, 2019 Results
Net interest income before provision for loan losses for the year ended December 31, 2019 increased $51.0 million, or 39.6%, to $179.5 million from $128.6 million for the year ended December 31, 2018 primarily due to a $1.22 billion, or 40.2%, increase in average interest-earning assets over the prior year associated with the Post Oak acquisition. The net interest margin on a tax equivalent basis decreased 5 basis points to 4.22% for the year ended December 31, 2019 from 4.27% for the year ended December 31, 2018. Core net interest margin on a tax equivalent basis for the year ended December 31, 2019 would have been 4.00%, compared to 4.17% for the year ended December 31, 2018. Please refer to the non-GAAP reconciliation on page 10.
Noninterest income for the year ended December 31, 2019 was $13.4 million, an increase of $5.7 million, or 74.0%, compared to $7.7 million for the year ended December 31, 2018 due primarily to additional noninterest income resulting from the Post Oak acquisition along with the gain of $1.5 million on the sale of securities.
Noninterest expense for the year ended December 31, 2019 increased $33.8 million, or 39.0%, to $120.6 million from $86.8 million for the year ended December 31, 2018. The increase in noninterest expense over the year ended December 31, 2018 was primarily due to additional expenses associated with increased headcount and bank offices from the Post Oak acquisition.
Allegiance’s efficiency ratio decreased from 63.68% for the year ended December 31, 2018 to 62.99% for the year ended December 31, 2019. For the year ended December 31, 2019, returns on average assets, average equity and average tangible equity were 1.10%, 7.48% and 11.50%, respectively, compared to 1.11%, 9.02% and 11.20%, respectively, for the year ended December 31, 2018. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 10.
Financial Condition
Total assets at December 31, 2019 increased $86.8 million to $4.99 billion compared to $4.91 billion at September 30, 2019 and increased $337.4 million compared to $4.66 billion at December 31, 2018, primarily due to organic loan growth.
Total loans at December 31, 2019 increased $29.3 million, or 3.0% (annualized), to $3.92 billion compared to $3.89 billion at September 30, 2019 and increased $207.0 million, or 5.6%, compared to $3.71 billion at December 31, 2018, primarily due to organic loan growth. Core loans, which exclude the mortgage warehouse portfolio, increased $57.6 million, or 5.9% (annualized), to $3.91 billion at December 31, 2019 from $3.85 billion at September 30, 2019 and increased $247.0 million, or 6.7%, from $3.66 billion at December 31, 2018.
Deposits at December 31, 2019 increased $170.6 million, or 17.4% (annualized), to $4.07 billion compared to $3.90 billion at September 30, 2019 and increased $405.6 million, or 11.1%, compared to $3.66 billion at December 31, 2018.
Asset Quality
Nonperforming assets totaled $36.7 million, or 0.74% of total assets, at December 31, 2019, compared to $42.9 million, or 0.88%, of total assets, at September 30, 2019, and $33.6 million, or 0.72% of total assets, at December 31, 2018. The allowance for loan losses was 0.75% of total loans at December 31, 2019, 0.77% of total loans at September 30, 2019 and 0.71% of total loans at December 31, 2018.
The provision for loan losses for the fourth quarter 2019 was $933 thousand, or 0.10% (annualized) of average loans, compared to $2.6 million, or 0.27% (annualized) of average loans, for the third quarter 2019. The provision for loan losses for the year ended 2019 was $5.9 million, or 0.15% of average loans, compared to $4.2 million, or 0.16% of average loans, for the year ended 2018.
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Fourth quarter 2019 net charge-offs were $1.3 million, or 0.13% (annualized) of average loans, compared to net charge-offs of $729 thousand, or 0.07% (annualized) of average loans, for the third quarter 2019 and $219 thousand, or 0.02% (annualized) of average loans, for the fourth quarter 2018. Net charge-offs for the year ended December 31, 2019 were $2.8 million, or 0.07% of average loans, compared to net charge-offs for the year ended December 31, 2018 of $1.6 million, or 0.06% of average loans.
Dividend
The Board of Directors of Allegiance declared its first cash dividend of $0.10 per share to be paid on March 16, 2020 to all shareholders of record as of February 28, 2020. The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.
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 Wednesday, January 29, 2020 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its fourth quarter 2019 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 4427269. 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 December 31, 2019, Allegiance was a $4.99 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 small to medium-sized businesses and individual customers in the Houston region. 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 December 31, 2019, Allegiance Bank operated 27 full-service banking locations in the Houston region, which we define as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur metropolitan statistical areas, with 26 bank offices and one loan production office in the Houston metropolitan area and one bank office location in Beaumont, just outside of 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, 2018 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)
| | 2019 | | | 2018 | |
| | December 31 | | | September 30 | | | June 30 | | | March 31 | | | December 31 | |
| | (Dollars in thousands) | |
Cash and cash equivalents | | $ | 346,248 | | | $ | 300,619 | | | $ | 232,607 | | | $ | 258,843 | | | $ | 268,947 | |
Available for sale securities | | | 372,545 | | | | 353,000 | | | | 348,173 | | | | 345,716 | | | | 337,293 | |
| | | | | | | | | | | | | | | | | | | | |
Total loans | | | 3,915,310 | | | | 3,886,004 | | | | 3,857,963 | | | | 3,806,161 | | | | 3,708,306 | |
Allowance for loan losses | | | (29,438 | ) | | | (29,808 | ) | | | (27,940 | ) | | | (27,123 | ) | | | (26,331 | ) |
Loans, net | | | 3,885,872 | | | | 3,856,196 | | | | 3,830,023 | | | | 3,779,038 | | | | 3,681,975 | |
| | | | | | | | | | | | | | | | | | | | |
Goodwill | | | 223,642 | | | | 223,642 | | | | 223,642 | | | | 223,642 | | | | 223,125 | |
Core deposit intangibles, net | | | 21,876 | | | | 23,053 | | | | 24,231 | | | | 25,409 | | | | 26,587 | |
Premises and equipment, net | | | 66,790 | | | | 67,175 | | | | 59,690 | | | | 60,327 | | | | 41,717 | |
Other real estate owned | | | 8,337 | | | | 8,333 | | | | 6,294 | | | | 1,152 | | | | 630 | |
Bank owned life insurance | | | 27,104 | | | | 26,947 | | | | 26,794 | | | | 26,639 | | | | 26,480 | |
Other assets | | | 40,240 | | | | 46,875 | | | | 42,757 | | | | 48,036 | | | | 48,495 | |
Total assets | | $ | 4,992,654 | | | $ | 4,905,840 | | | $ | 4,794,211 | | | $ | 4,768,802 | | | $ | 4,655,249 | |
| | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing deposits | | $ | 1,252,232 | | | $ | 1,227,839 | | | $ | 1,173,423 | | | $ | 1,181,920 | | | $ | 1,209,300 | |
Interest-bearing deposits | | | 2,815,869 | | | | 2,669,646 | | | | 2,687,217 | | | | 2,598,141 | | | | 2,453,236 | |
Total deposits | | | 4,068,101 | | | | 3,897,485 | | | | 3,860,640 | | | | 3,780,061 | | | | 3,662,536 | |
| | | | | | | | | | | | | | | | | | | | |
Borrowed funds | | | 75,503 | | | | 159,501 | | | | 146,998 | | | | 201,995 | | | | 225,493 | |
Subordinated debt | | | 107,799 | | | | 107,771 | | | | 49,019 | | | | 48,959 | | | | 48,899 | |
Other liabilities | | | 31,386 | | | | 34,775 | | | | 32,853 | | | | 34,010 | | | | 15,337 | |
Total liabilities | | | 4,282,789 | | | | 4,199,532 | | | | 4,089,510 | | | | 4,065,025 | | | | 3,952,265 | |
| | | | | | | | | | | | | | | | | | | | |
Common stock | | | 20,524 | | | | 20,737 | | | | 21,147 | | | | 21,484 | | | | 21,938 | |
Capital surplus | | | 521,066 | | | | 529,688 | | | | 541,979 | | | | 556,184 | | | | 571,803 | |
Retained earnings | | | 163,375 | | | | 149,389 | | | | 137,342 | | | | 123,094 | | | | 112,131 | |
Accumulated other comprehensive income (loss) | | | 4,900 | | | | 6,494 | | | | 4,233 | | | | 3,015 | | | | (2,888 | ) |
Total shareholders’ equity | | | 709,865 | | | | 706,308 | | | | 704,701 | | | | 703,777 | | | | 702,984 | |
Total liabilities and equity | | $ | 4,992,654 | | | $ | 4,905,840 | | | $ | 4,794,211 | | | $ | 4,768,802 | | | $ | 4,655,249 | |
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Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
| | Three Months Ended | | | Years Ended | |
| | 2019 | | | 2018 | | | 2019 | | | 2018 | |
| | December 31 | | | September 30 | | | June 30 | | | March 31 | | | December 31 | | | December 31 | | | December 31 | |
| | (Dollars in thousands, except per share data) | |
INTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans, including fees | | $ | 55,368 | | | $ | 55,790 | | | $ | 56,016 | | | $ | 54,189 | | | $ | 53,272 | | | $ | 221,363 | | | $ | 148,223 | |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | 2,066 | | | | 2,090 | | | | 1,837 | | | | 982 | | | | 844 | | | | 6,975 | | | | 2,725 | |
Tax-exempt | | | 469 | | | | 483 | | | | 692 | | | | 1,290 | | | | 1,445 | | | | 2,934 | | | | 5,802 | |
Deposits in other financial institutions | | | 244 | | | | 302 | | | | 401 | | | | 688 | | | | 742 | | | | 1,635 | | | | 1,473 | |
Total interest income | | | 58,147 | | | | 58,665 | | | | 58,946 | | | | 57,149 | | | | 56,303 | | | | 232,907 | | | | 158,223 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Demand, money market and savings deposits | | | 5,091 | | | | 4,975 | | | | 4,513 | | | | 3,728 | | | | 3,367 | | | | 18,307 | | | | 6,478 | |
Certificates and other time deposits | | | 6,483 | | | | 6,909 | | | | 7,008 | | | | 6,256 | | | | 5,358 | | | | 26,656 | | | | 15,478 | |
Borrowed funds | | | 547 | | | | 1,183 | | | | 1,118 | | | | 1,827 | | | | 1,008 | | | | 4,675 | | | | 4,788 | |
Subordinated debt | | | 1,500 | | | | 761 | | | | 736 | | | | 735 | | | | 732 | | | | 3,732 | | | | 2,900 | |
Total interest expense | | | 13,621 | | | | 13,828 | | | | 13,375 | | | | 12,546 | | | | 10,465 | | | | 53,370 | | | | 29,644 | |
NET INTEREST INCOME | | | 44,526 | | | | 44,837 | | | | 45,571 | | | | 44,603 | | | | 45,838 | | | | 179,537 | | | | 128,579 | |
Provision for loan losses | | | 933 | | | | 2,597 | | | | 1,407 | | | | 1,002 | | | | 2,964 | | | | 5,939 | | | | 4,248 | |
Net interest income after provision for loan losses | | | 43,593 | | | | 42,240 | | | | 44,164 | | | | 43,601 | | | | 42,874 | | | | 173,598 | | | | 124,331 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NONINTEREST INCOME: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nonsufficient funds fees | | | 189 | | | | 168 | | | | 139 | | | | 162 | | | | 190 | | | | 658 | | | | 755 | |
Service charges on deposit accounts | | | 403 | | | | 379 | | | | 365 | | | | 325 | | | | 363 | | | | 1,472 | | | | 869 | |
Gain on sale of securities | | | 613 | | | | — | | | | 846 | | | | — | | | | — | | | | 1,459 | | | | — | |
(Loss) gain on sales of other real estate and repossessed assets | | | (45 | ) | | | — | | | | 70 | | | | 1 | | | | (429 | ) | | | 26 | | | | (428 | ) |
Bank owned life insurance | | | 157 | | | | 153 | | | | 155 | | | | 159 | | | | 163 | | | | 624 | | | | 579 | |
Rebate from correspondent bank | | | 900 | | | | 900 | | | | 884 | | | | 896 | | | | 988 | | | | 3,580 | | | | 2,609 | |
Other | | | 1,183 | | | | 1,289 | | | | 1,386 | | | | 1,746 | | | | 1,059 | | | | 5,604 | | | | 3,329 | |
Total noninterest income | | | 3,400 | | | | 2,889 | | | | 3,845 | | | | 3,289 | | | | 2,334 | | | | 13,423 | | | | 7,713 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NONINTEREST EXPENSE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 18,273 | | | | 20,221 | | | | 19,415 | | | | 19,684 | | | | 18,167 | | | | 77,593 | | | | 56,704 | |
Net occupancy and equipment | | | 1,994 | | | | 1,973 | | | | 2,114 | | | | 2,098 | | | | 1,959 | | | | 8,179 | | | | 5,845 | |
Depreciation | | | 861 | | | | 822 | | | | 756 | | | | 753 | | | | 802 | | | | 3,192 | | | | 2,132 | |
Data processing and software amortization | | | 2,120 | | | | 2,058 | | | | 1,709 | | | | 1,577 | | | | 1,485 | | | | 7,464 | | | | 5,120 | |
Professional fees | | | 540 | | | | 667 | | | | 527 | | | | 599 | | | | 670 | | | | 2,333 | | | | 2,009 | |
Regulatory assessments and FDIC insurance | | | 216 | | | | (41 | ) | | | 802 | | | | 728 | | | | 776 | | | | 1,705 | | | | 2,309 | |
Core deposit intangibles amortization | | | 1,177 | | | | 1,178 | | | | 1,178 | | | | 1,178 | | | | 1,229 | | | | 4,711 | | | | 1,815 | |
Communications | | | 486 | | | | 455 | | | | 468 | | | | 430 | | | | 416 | | | | 1,839 | | | | 1,185 | |
Advertising | | | 597 | | | | 449 | | | | 617 | | | | 704 | | | | 704 | | | | 2,367 | | | | 1,725 | |
Acquisition and merger-related expenses | | | — | | | | — | | | | 153 | | | | 1,173 | | | | 840 | | | | 1,326 | | | | 1,661 | |
Other | | | 3,167 | | | | 2,227 | | | | 2,341 | | | | 2,191 | | | | 1,998 | | | | 9,926 | | | | 6,282 | |
Total noninterest expense | | | 29,431 | | | | 30,009 | | | | 30,080 | | | | 31,115 | | | | 29,046 | | | | 120,635 | | | | 86,787 | |
INCOME BEFORE INCOME TAXES | | | 17,562 | | | | 15,120 | | | | 17,929 | | | | 15,775 | | | | 16,162 | | | | 66,386 | | | | 45,257 | |
Provision for income taxes | | | 3,576 | | | | 3,073 | | | | 3,681 | | | | 3,097 | | | | 2,999 | | | | 13,427 | | | | 7,948 | |
NET INCOME | | $ | 13,986 | | | $ | 12,047 | | | $ | 14,248 | | | $ | 12,678 | | | $ | 13,163 | | | $ | 52,959 | | | $ | 37,309 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EARNINGS PER SHARE | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.68 | | | $ | 0.57 | | | $ | 0.67 | | | $ | 0.58 | | | $ | 0.60 | | | $ | 2.50 | | | $ | 2.41 | |
Diluted | | $ | 0.67 | | | $ | 0.57 | | | $ | 0.66 | | | $ | 0.58 | | | $ | 0.59 | | | $ | 2.47 | | | $ | 2.37 | |
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Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
| | Three Months Ended | | | Years Ended | |
| | 2019 | | | 2018 | | | 2019 | | | 2018 | |
| | December 31 | | | September 30 | | | June 30 | | | March 31 | | | December 31 | | | December 31 | | | December 31 | |
| | (Dollars and share amounts in thousands, except per share data) | |
Net income | | $ | 13,986 | | | $ | 12,047 | | | $ | 14,248 | | | $ | 12,678 | | | $ | 13,163 | | | $ | 52,959 | | | $ | 37,309 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Earnings per share, basic | | $ | 0.68 | | | $ | 0.57 | | | $ | 0.67 | | | $ | 0.58 | | | $ | 0.60 | | | $ | 2.50 | | | $ | 2.41 | |
Earnings per share, diluted | | $ | 0.67 | | | $ | 0.57 | | | $ | 0.66 | | | $ | 0.58 | | | $ | 0.59 | | | $ | 2.47 | | | $ | 2.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average assets(A) | | | 1.13 | % | | | 0.98 | % | | | 1.19 | % | | | 1.08 | % | | | 1.12 | % | | | 1.10 | % | | | 1.11 | % |
Return on average equity(A) | | | 7.81 | % | | | 6.73 | % | | | 8.10 | % | | | 7.27 | % | | | 7.49 | % | | | 7.48 | % | | | 9.02 | % |
Return on average tangible equity(A)(B) | | | 11.96 | % | | | 10.33 | % | | | 12.52 | % | | | 11.22 | % | | | 11.66 | % | | | 11.50 | % | | | 11.20 | % |
Net interest margin (tax equivalent)(C) | | | 4.11 | % | | | 4.16 | % | | | 4.33 | % | | | 4.31 | % | | | 4.45 | % | | | 4.22 | % | | | 4.27 | % |
Core net interest margin (tax equivalent)(B) | | | 3.94 | % | | | 3.97 | % | | | 4.07 | % | | | 4.03 | % | | | 4.16 | % | | | 4.00 | % | | | 4.17 | % |
Efficiency ratio(D) | | | 62.20 | % | | | 62.88 | % | | | 61.93 | % | | | 64.97 | % | | | 60.30 | % | | | 62.99 | % | | | 63.68 | % |
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Capital Ratios | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allegiance Bancshares, Inc. (Consolidated) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity to assets | | | 14.22 | % | | | 14.40 | % | | | 14.70 | % | | | 14.76 | % | | | 15.10 | % | | | 14.22 | % | | | 15.10 | % |
Tangible equity to tangible assets(B) | | | 9.78 | % | | | 9.86 | % | | | 10.05 | % | | | 10.06 | % | | | 10.29 | % | | | 9.78 | % | | | 10.29 | % |
Estimated common equity tier 1 capital | | | 11.43 | % | | | 11.28 | % | | | 11.34 | % | | | 11.37 | % | | | 11.76 | % | | | 11.43 | % | | | 11.76 | % |
Estimated tier 1 risk-based capital | | | 11.67 | % | | | 11.51 | % | | | 11.58 | % | | | 11.61 | % | | | 12.01 | % | | | 11.67 | % | | | 12.01 | % |
Estimated total risk-based capital | | | 14.85 | % | | | 14.70 | % | | | 13.27 | % | | | 13.28 | % | | | 13.70 | % | | | 14.85 | % | | | 13.70 | % |
Estimated tier 1 leverage capital | | | 10.02 | % | | | 10.06 | % | | | 10.17 | % | | | 10.25 | % | | | 10.61 | % | | | 10.02 | % | | | 10.61 | % |
Allegiance Bank | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Estimated common equity tier 1 capital | | | 12.68 | % | | | 12.28 | % | | | 12.02 | % | | | 11.67 | % | | | 11.83 | % | | | 12.68 | % | | | 11.83 | % |
Estimated tier 1 risk-based capital | | | 12.68 | % | | | 12.28 | % | | | 12.02 | % | | | 11.67 | % | | | 11.83 | % | | | 12.68 | % | | | 11.83 | % |
Estimated total risk-based capital | | | 14.40 | % | | | 14.01 | % | | | 13.71 | % | | | 13.34 | % | | | 13.53 | % | | | 14.40 | % | | | 13.53 | % |
Estimated tier 1 leverage capital | | | 10.90 | % | | | 10.73 | % | | | 10.57 | % | | | 10.31 | % | | | 10.45 | % | | | 10.90 | % | | | 10.45 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic | | | 20,652 | | | | 20,981 | | | | 21,257 | | | | 21,733 | | | | 21,908 | | | | 21,152 | | | | 15,485 | |
Diluted | | | 20,930 | | | | 21,256 | | | | 21,546 | | | | 22,040 | | | | 22,210 | | | | 21,424 | | | | 15,773 | |
Period end shares outstanding | | | 20,524 | | | | 20,737 | | | | 21,147 | | | | 21,484 | | | | 21,938 | | | | 20,524 | | | | 21,938 | |
Book value per share | | $ | 34.59 | | | $ | 34.06 | | | $ | 33.32 | | | $ | 32.76 | | | $ | 32.04 | | | $ | 34.59 | | | $ | 32.04 | |
Tangible book value per share(B) | | $ | 22.62 | | | $ | 22.16 | | | $ | 21.60 | | | $ | 21.17 | | | $ | 20.66 | | | $ | 22.62 | | | $ | 20.66 | |
(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 total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for loan losses are not part of this calculation. |
6
Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
| | Three Months Ended | |
| | December 31, 2019 | | | September 30, 2019 | | | December 31, 2018 | |
| | 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 | | $ | 3,888,476 | | | $ | 55,368 | | | | 5.65 | % | | $ | 3,870,205 | | | $ | 55,790 | | | | 5.72 | % | | $ | 3,639,390 | | | $ | 53,272 | | | | 5.81 | % |
Securities | | | 364,605 | | | | 2,535 | | | | 2.76 | % | | | 359,392 | | | | 2,573 | | | | 2.84 | % | | | 336,974 | | | | 2,289 | | | | 2.70 | % |
Deposits in other financial institutions and other | | | 54,947 | | | | 244 | | | | 1.76 | % | | | 55,070 | | | | 302 | | | | 2.17 | % | | | 132,281 | | | | 742 | | | | 2.23 | % |
Total interest-earning assets | | | 4,308,028 | | | $ | 58,147 | | | | 5.35 | % | | | 4,284,667 | | | $ | 58,665 | | | | 5.43 | % | | | 4,108,645 | | | $ | 56,303 | | | | 5.44 | % |
Allowance for loan losses | | | (29,997 | ) | | | | | | | | | | | (28,593 | ) | | | | | | | | | | | (23,554 | ) | | | | | | | | |
Noninterest-earning assets | | | 639,601 | | | | | | | | | | | | 600,004 | | | | | | | | | | | | 564,934 | | | | | | | | | |
Total assets | | $ | 4,917,632 | | | | | | | | | | | $ | 4,856,078 | | | | | | | | | | | $ | 4,650,025 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 361,666 | | | $ | 952 | | | | 1.04 | % | | $ | 332,652 | | | $ | 943 | | | | 1.13 | % | | $ | 325,046 | | | $ | 920 | | | | 1.12 | % |
Money market and savings deposits | | | 1,169,996 | | | | 4,139 | | | | 1.40 | % | | | 1,099,937 | | | | 4,032 | | | | 1.45 | % | | | 942,764 | | | | 2,447 | | | | 1.03 | % |
Certificates and other time deposits | | | 1,203,110 | | | | 6,483 | | | | 2.14 | % | | | 1,269,886 | | | | 6,909 | | | | 2.16 | % | | | 1,232,666 | | | | 5,358 | | | | 1.72 | % |
Borrowed funds | | | 86,372 | | | | 547 | | | | 2.51 | % | | | 158,358 | | | | 1,183 | | | | 2.96 | % | | | 168,403 | | | | 1,008 | | | | 2.37 | % |
Subordinated debt | | | 107,782 | | | | 1,500 | | | | 5.52 | % | | | 51,607 | | | | 761 | | | | 5.85 | % | | | 48,865 | | | | 732 | | | | 5.94 | % |
Total interest-bearing liabilities | | | 2,928,926 | | | $ | 13,621 | | | | 1.85 | % | | | 2,912,440 | | | $ | 13,828 | | | | 1.88 | % | | | 2,717,744 | | | $ | 10,465 | | | | 1.53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | 1,237,770 | | | | | | | | | | | | 1,198,564 | | | | | | | | | | | | 1,215,589 | | | | | | | | | |
Other liabilities | | | 40,781 | | | | | | | | | | | | 35,030 | | | | | | | | | | | | 19,389 | | | | | | | | | |
Total liabilities | | | 4,207,477 | | | | | | | | | | | | 4,146,034 | | | | | | | | | | | | 3,952,722 | | | | | | | | | |
Shareholders' equity | | | 710,155 | | | | | | | | | | | | 710,044 | | | | | | | | | | | | 697,303 | | | | | | | | | |
Total liabilities and shareholders' equity | | $ | 4,917,632 | | | | | | | | | | | $ | 4,856,078 | | | | | | | | | | | $ | 4,650,025 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest rate spread | | | | | | | | | | | 3.50 | % | | | | | | | | | | | 3.55 | % | | | | | | | | | | | 3.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and margin | | | | | | $ | 44,526 | | | | 4.10 | % | | | | | | $ | 44,837 | | | | 4.15 | % | | | | | | $ | 45,838 | | | | 4.43 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and net interest margin (tax equivalent) | | | | | | $ | 44,623 | | | | 4.11 | % | | | | | | $ | 44,924 | | | | 4.16 | % | | | | | | $ | 46,100 | | | | 4.45 | % |
7
Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
| | Years Ended December 31, | |
| | 2019 | | | 2018 | |
| | 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 | | $ | 3,831,894 | | | $ | 221,363 | | | | 5.78 | % | | $ | 2,652,355 | | | $ | 148,223 | | | | 5.59 | % |
Securities | | | 355,233 | | | | 9,909 | | | | 2.79 | % | | | 317,329 | | | | 8,527 | | | | 2.69 | % |
Deposits in other financial institutions | | | 74,655 | | | | 1,635 | | | | 2.19 | % | | | 70,145 | | | | 1,473 | | | | 2.10 | % |
Total interest-earning assets | | | 4,261,782 | | | $ | 232,907 | | | | 5.47 | % | | | 3,039,829 | | | $ | 158,223 | | | | 5.21 | % |
Allowance for loan losses | | | (28,129 | ) | | | | | | | | | | | (24,077 | ) | | | | | | | | |
Noninterest-earning assets | | | 594,981 | | | | | | | | | | | | 349,408 | | | | | | | | | |
Total assets | | $ | 4,828,634 | | | | | | | | | | | $ | 3,365,160 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand deposits | | $ | 345,693 | | | $ | 4,010 | | | | 1.16 | % | | $ | 224,210 | | | $ | 1,834 | | | | 0.82 | % |
Money market and savings deposits | | | 1,037,126 | | | | 14,297 | | | | 1.38 | % | | | 637,722 | | | | 4,644 | | | | 0.73 | % |
Certificates and other time deposits | | | 1,276,684 | | | | 26,656 | | | | 2.09 | % | | | 940,356 | | | | 15,478 | | | | 1.65 | % |
Borrowed funds | | | 127,138 | | | | 4,675 | | | | 3.68 | % | | | 240,952 | | | | 4,788 | | | | 1.99 | % |
Subordinated debt | | | 64,451 | | | | 3,732 | | | | 5.79 | % | | | 48,776 | | | | 2,900 | | | | 5.95 | % |
Total interest-bearing liabilities | | | 2,851,092 | | | $ | 53,370 | | | | 1.87 | % | | | 2,092,016 | | | $ | 29,644 | | | | 1.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | | 1,194,496 | | | | | | | | | | | | 848,276 | | | | | | | | | |
Other liabilities | | | 74,777 | | | | | | | | | | | | 11,427 | | | | | | | | | |
Total liabilities | | | 4,120,365 | | | | | | | | | | | | 2,951,719 | | | | | | | | | |
Shareholders' equity | | | 708,269 | | | | | | | | | | | | 413,441 | | | | | | | | | |
Total liabilities and shareholders' equity | | $ | 4,828,634 | | | | | | | | | | | $ | 3,365,160 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest rate spread | | | | | | | | | | | 3.60 | % | | | | | | | | | | | 3.79 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and margin | | | | | | $ | 179,537 | | | | 4.21 | % | | | | | | $ | 128,579 | | | | 4.23 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income and net interest margin (tax equivalent) | | | | | | $ | 180,036 | | | | 4.22 | % | | | | | | $ | 129,652 | | | | 4.27 | % |
8
Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
| | Three Months Ended | |
| | 2019 | | | 2018 | |
| | December 31 | | | September 30 | | | June 30 | | | March 31 | | | December 31 | |
| | (Dollars in thousands) | |
Period-end Loan Portfolio: | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 689,360 | | | $ | 675,055 | | | $ | 694,516 | | | $ | 699,471 | | | $ | 702,037 | |
Mortgage warehouse | | | 8,304 | | | | 36,594 | | | | 46,171 | | | | 36,742 | | | | 48,274 | |
Real estate: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate (including multi-family residential) | | | 1,873,782 | | | | 1,859,721 | | | | 1,830,764 | | | | 1,771,890 | | | | 1,650,912 | |
Commercial real estate construction and land development | | | 410,471 | | | | 386,723 | | | | 368,108 | | | | 396,162 | | | | 430,128 | |
1-4 family residential (including home equity) | | | 698,957 | | | | 695,520 | | | | 690,961 | | | | 658,261 | | | | 649,311 | |
Residential construction | | | 192,515 | | | | 189,608 | | | | 183,991 | | | | 201,314 | | | | 186,411 | |
Consumer and other | | | 41,921 | | | | 42,783 | | | | 43,452 | | | | 42,321 | | | | 41,233 | |
Total loans | | $ | 3,915,310 | | | $ | 3,886,004 | | | $ | 3,857,963 | | | $ | 3,806,161 | | | $ | 3,708,306 | |
| | | | | | | | | | | | | | | | | | | | |
Asset Quality: | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 28,371 | | | $ | 34,615 | | | $ | 31,382 | | | $ | 32,670 | | | $ | 32,953 | |
Accruing loans 90 or more days past due | | | — | | | | — | | | | — | | | | — | | | | — | |
Total nonperforming loans | | | 28,371 | | | | 34,615 | | | | 31,382 | | | | 32,670 | | | | 32,953 | |
Other real estate | | | 8,337 | | | | 8,333 | | | | 6,294 | | | | 1,152 | | | | 630 | |
Other repossessed assets | | | — | | | | — | | | | — | | | | — | | | | — | |
Total nonperforming assets | | $ | 36,708 | | | $ | 42,948 | | | $ | 37,676 | | | $ | 33,822 | | | $ | 33,583 | |
| | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | $ | 1,303 | | | $ | 729 | | | $ | 590 | | | $ | 210 | | | $ | 219 | |
| | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans: | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | 8,388 | | | $ | 8,033 | | | $ | 9,386 | | | $ | 11,221 | | | $ | 10,861 | |
Mortgage warehouse | | | — | | | | — | | | | — | | | | — | | | | — | |
Real estate: | | | | | | | | | | | | | | | | | | | | |
Commercial real estate (including multi-family residential) | | | 6,741 | | | | 15,356 | | | | 18,218 | | | | 17,531 | | | | 17,776 | |
Commercial real estate construction and land development | | | 9,050 | | | | 9,050 | | | | 1,541 | | | | 818 | | | | 974 | |
1-4 family residential (including home equity) | | | 3,294 | | | | 1,992 | | | | 2,074 | | | | 2,928 | | | | 3,201 | |
Residential construction | | | 746 | | | | — | | | | — | | | | — | | | | — | |
Consumer and other | | | 152 | | | | 184 | | | | 163 | | | | 172 | | | | 141 | |
Total nonaccrual loans | | $ | 28,371 | | | $ | 34,615 | | | $ | 31,382 | | | $ | 32,670 | | | $ | 32,953 | |
| | | | | | | | | | | | | | | | | | | | |
Asset Quality Ratios: | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets to total assets | | | 0.74 | % | | | 0.88 | % | | | 0.79 | % | | | 0.71 | % | | | 0.72 | % |
Nonperforming loans to total loans | | | 0.72 | % | | | 0.89 | % | | | 0.81 | % | | | 0.86 | % | | | 0.89 | % |
Allowance for loan losses to nonperforming loans | | | 103.76 | % | | | 86.11 | % | | | 89.03 | % | | | 83.02 | % | | | 79.90 | % |
Allowance for loan losses to total loans | | | 0.75 | % | | | 0.77 | % | | | 0.72 | % | | | 0.71 | % | | | 0.71 | % |
Net charge-offs to average loans (annualized) | | | 0.13 | % | | | 0.07 | % | | | 0.06 | % | | | 0.02 | % | | | 0.02 | % |
9
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 and 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, the ratio of tangible equity to tangible assets and core net interest margin on a tax equivalent basis 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 | | | Years Ended | |
| 2019 | | | 2018 | | | 2019 | | | 2018 | |
| December 31 | | | September 30 | | | June 30 | | | March 31 | | | December 31 | | | December 31 | | | December 31 | |
| (Dollars and share amounts in thousands, except per share data) | |
Total shareholders' equity | $ | 709,865 | | | $ | 706,308 | | | $ | 704,701 | | | $ | 703,777 | | | $ | 702,984 | | | $ | 709,865 | | | $ | 702,984 | |
Less: Goodwill and core deposit intangibles, net | | 245,518 | | | | 246,695 | | | | 247,873 | | | | 249,051 | | | | 249,712 | | | | 245,518 | | | | 249,712 | |
Tangible shareholders’ equity | $ | 464,347 | | | $ | 459,613 | | | $ | 456,828 | | | $ | 454,726 | | | $ | 453,272 | | | $ | 464,347 | | | $ | 453,272 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares outstanding at end of period | | 20,524 | | | | 20,737 | | | | 21,147 | | | | 21,484 | | | | 21,938 | | | | 20,524 | | | | 21,938 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible book value per share | $ | 22.62 | | | $ | 22.16 | | | $ | 21.60 | | | $ | 21.17 | | | $ | 20.66 | | | $ | 22.62 | | | $ | 20.66 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income | $ | 13,986 | | | $ | 12,047 | | | $ | 14,248 | | | $ | 12,678 | | | $ | 13,163 | | | $ | 52,959 | | | $ | 37,309 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average shareholders' equity | $ | 710,155 | | | $ | 710,044 | | | $ | 705,162 | | | $ | 707,666 | | | $ | 697,303 | | | $ | 708,269 | | | $ | 413,441 | |
Less: Average goodwill and core deposit intangibles, net | | 246,154 | | | | 247,404 | | | | 248,621 | | | | 249,277 | | | | 249,252 | | | | 247,854 | | | | 80,384 | |
Average tangible shareholders’ equity | $ | 464,001 | | | $ | 462,640 | | | $ | 456,541 | | | $ | 458,389 | | | $ | 448,051 | | | $ | 460,415 | | | $ | 333,057 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Return on average tangible equity | | 11.96 | % | | | 10.33 | % | | | 12.52 | % | | | 11.22 | % | | | 11.66 | % | | | 11.50 | % | | | 11.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | $ | 4,992,654 | | | $ | 4,905,840 | | | $ | 4,794,211 | | | $ | 4,768,802 | | | $ | 4,655,249 | | | $ | 4,992,654 | | | $ | 4,655,249 | |
Less: Goodwill and core deposit intangibles, net | | 245,518 | | | | 246,695 | | | | 247,873 | | | | 249,051 | | | | 249,712 | | | | 245,518 | | | | 249,712 | |
Tangible assets | $ | 4,747,136 | | | $ | 4,659,145 | | | $ | 4,546,338 | | | $ | 4,519,751 | | | $ | 4,405,537 | | | $ | 4,747,136 | | | $ | 4,405,537 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Tangible equity to tangible assets | | 9.78 | % | | | 9.86 | % | | | 10.05 | % | | | 10.06 | % | | | 10.29 | % | | | 9.78 | % | | | 10.29 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (tax equivalent) | $ | 44,623 | | | $ | 44,924 | | | $ | 45,684 | | | $ | 44,805 | | | $ | 46,100 | | | $ | 180,036 | | | $ | 129,652 | |
Less: Acquisition accounting adjustments | | (1,860 | ) | | | (2,045 | ) | | | (2,755 | ) | | | (2,965 | ) | | | (3,069 | ) | | | (9,625 | ) | | | (3,069 | ) |
Core net interest income (tax equivalent) | $ | 42,763 | | | $ | 42,879 | | | $ | 42,929 | | | $ | 41,840 | | | $ | 43,031 | | | $ | 170,411 | | | $ | 126,583 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average earning assets | $ | 4,308,028 | | | $ | 4,284,667 | | | $ | 4,233,653 | | | $ | 4,212,669 | | | $ | 4,108,645 | | | $ | 4,261,782 | | | $ | 3,039,829 | |
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Net interest margin (tax equivalent) | | 4.11 | % | | | 4.16 | % | | | 4.33 | % | | | 4.31 | % | | | 4.45 | % | | | 4.22 | % | | | 4.27 | % |
Core net interest margin (tax equivalent) | | 3.94 | % | | | 3.97 | % | | | 4.07 | % | | | 4.03 | % | | | 4.16 | % | | | 4.00 | % | | | 4.17 | % |
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