PRESS RELEASE
Allegiance Bancshares, Inc.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com
ALLEGIANCE BANCSHARES, INC. REPORTS
FIRST QUARTER 2017 RESULTS
• | Record core loan growth of 17.8% year over year and 5.4% for the first quarter 2017 compared to the linked quarter |
• | Net interest income increased 14.4% year over year and 3.0% for the first quarter 2017 compared to the linked quarter |
• | Net interest margin on a tax equivalent basis increased six basis points to 4.38% for the first quarter 2017 compared to 4.32% for the linked quarter |
HOUSTON, April 25, 2017. Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $6.0 million in the first quarter 2017 compared to $6.4 million in the first quarter 2016 and diluted earnings per share for the first quarter 2017 of $0.45 compared to $0.49 in the first quarter 2016. The first quarter 2016 included a $1.3 million after tax gain on the sale of two Central Texas branch locations that were sold in order to focus on the Houston MSA. Excluding the gain on the sale of these branches during the first quarter 2016, net income for the first quarter 2017 increased 20.4% and diluted earnings per share for the first quarter 2017 increased 15.4% compared to the same period in 2016. Net income for the first quarter 2017 increased 4.8% compared to the fourth quarter 2016 and diluted earnings per share for the first quarter 2017 increased 2.3% compared to $0.44 for the fourth quarter 2016.
"We are excited to report another solid quarter driven by a record level of core loan growth that grew at an annualized rate of over 21% in the first quarter. Our continued focus is on leveraging the recruiting successes that we have experienced over the past several quarters. Our success is due in large part to our bankers and to their existing and new customer relationships within the Houston MSA. In addition to adding high quality lenders, we have recruited experienced operations specialists and retained consultants to help us enhance our policies, procedures and infrastructure to position the Bank for continued growth," commented George Martinez, Allegiance's Chairman and Chief Executive Officer.
"Credit quality remains a core foundational strength with key metrics remaining favorable. We continue to monitor current events and economic trends that could impact our market and clients. We are fortunate to be located in Houston where customers are continuing to make investments in the increasingly diversified local economy," concluded Martinez.
First Quarter 2017 Results
First quarter 2017 annualized returns on average assets, average equity and average tangible equity were 0.96%, 8.61% and 10.15%, respectively, compared to 1.19%, 9.70% and 11.67%, respectively, for the first quarter 2016. Excluding the gain on the sale of two Central Texas branch locations that occurred during the first quarter 2016, the annualized returns on average assets, average equity and average tangible equity for the first quarter 2016 would have been 0.94%, 7.67% and 9.22%, respectively. Annualized returns on average assets, average equity and average tangible equity for the fourth quarter 2016 were 0.93%, 8.25% and 9.79%, respectively.
Net interest income before provision for loan losses for the first quarter 2017 increased $3.0 million, or 14.4%, to $24.1 million from $21.1 million for the first quarter 2016 primarily due to organic loan growth and an increase in our securities portfolio. Net interest income before provision for loan losses for the first quarter 2017 increased $706 thousand, or 3.0%, from $23.4 million for the fourth quarter 2016. The net interest margin on a tax equivalent basis decreased 7 basis points to 4.38% for the first quarter 2017 from 4.45% for the
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first quarter 2016, and increased 6 basis points from 4.32% for the fourth quarter 2016.
Noninterest income for the first quarter 2017 was $1.3 million, a decrease of $2.0 million, or 59.4%, compared to $3.3 million for the first quarter 2016 and a decrease of $137 thousand, or 9.3%, compared to $1.5 million for the fourth quarter 2016. The first quarter 2016 included a pre-tax gain of $2.1 million on the sale of the two Central Texas branch locations and the fourth quarter 2016 included a gain on the sale of other real estate of $206 thousand.
Noninterest expense for the first quarter 2017 increased $2.3 million, or 16.1%, to $16.5 million from $14.3 million for the first quarter 2016, and increased $362 thousand, or 2.2%, from $16.2 million for the fourth quarter 2016. The increase in noninterest expense over the first quarter 2016 was primarily due to increases in salaries and benefits and professional fees related to supporting growth initiatives.
In the first quarter 2017, Allegiance’s efficiency ratio increased to 64.98% from 63.80% for the first quarter 2016 and decreased from 65.09% for the fourth quarter 2016.
Financial Condition
Total loans at March 31, 2017 increased $269.0 million, or 15.7%, to $1.99 billion compared to $1.72 billion at March 31, 2016 and increased $94.8 million, or 5.0%, compared to $1.89 billion at December 31, 2016. These increases were due to strong organic loan growth within the Bank’s loan portfolio. Core loans, which exclude the mortgage warehouse portfolio, increased $291 million, or 17.8%, to $1.92 billion at March 31, 2017 from $1.63 billion at March 31, 2016 and increased $97.7 million, or 5.4%, from $1.82 billion at December 31, 2016.
Deposits at March 31, 2017 increased $169.9 million, or 9.2%, to $2.01 billion compared to $1.84 billion at March 31, 2016 and increased $142.4 million, or 7.6%, compared to $1.87 billion at December 31, 2016.
Asset Quality
Nonperforming assets totaled $19.9 million, or 0.77% of total assets, at March 31, 2017, compared to $8.5 million, or 0.38% of total assets, at March 31, 2016, and $18.5 million, or 0.75% of total assets, at December 31, 2016. The allowance for loan losses was 0.94% of total loans at March 31, 2017, 0.80% of total loans at March 31, 2016 and 0.95% of total loans at December 31, 2016.
The provision for loan losses for the first quarter 2017 was $1.3 million, or 0.28% (annualized) of average loans, compared to $710 thousand, or 0.17% (annualized) of average loans, for the first quarter 2016, and $900 thousand, or 0.19% (annualized) of average loans, for the fourth quarter 2016. First quarter 2017 net charge-offs were $567 thousand, or 0.12% (annualized) of average loans, compared to net charge-offs of $51 thousand, or 0.01% (annualized) of average loans, for the first quarter 2016, and $174 thousand, or 0.04% (annualized) of average loans, for the fourth quarter 2016.
GAAP Reconciliation of Non-GAAP Financial Measures
Allegiance’s management uses certain non-GAAP financial measures to evaluate its performance. Please refer to the GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures on page 9 of this earnings release for a reconciliation of these non-GAAP financial measures.
Conference Call
As previously announced, Allegiance’s management team will host a conference call on Tuesday, April 25, 2017 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first quarter 2017 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 1503877. 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.
Allegiance Bancshares, Inc.
Allegiance Bancshares, Inc. is a $2.59 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 unique super-community banking strategy was designed to foster strong customer relationships while benefiting from a platform and scale that is competitive with larger local and regional banks. Allegiance Bank operates 16 full-service banking locations and one loan production office in the Houston metropolitan area. Visit www.allegiancebank.com for more information.
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“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
This release may contain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, present expectations, estimates and projections about Allegiance and its subsidiaries. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “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 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; 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 risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 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 Investor Relations, 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) | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Cash and cash equivalents | $ | 184,146 | $ | 142,098 | $ | 225,082 | $ | 210,863 | $ | 183,290 | |||||||||
Available for sale securities | 317,219 | 316,455 | 310,033 | 303,463 | 215,401 | ||||||||||||||
Total loans | 1,986,438 | 1,891,635 | 1,830,722 | 1,753,683 | 1,717,448 | ||||||||||||||
Allowance for loan losses | (18,687 | ) | (17,911 | ) | (17,185 | ) | (14,917 | ) | (13,757 | ) | |||||||||
Loans, net | 1,967,751 | 1,873,724 | 1,813,537 | 1,738,766 | 1,703,691 | ||||||||||||||
Goodwill | 39,389 | 39,389 | 39,389 | 39,389 | 39,389 | ||||||||||||||
Core deposit intangibles, net | 3,860 | 4,055 | 4,250 | 4,446 | 4,641 | ||||||||||||||
Premises and equipment, net | 18,138 | 18,340 | 17,811 | 17,821 | 18,121 | ||||||||||||||
Other real estate owned | 365 | 1,503 | 1,138 | 1,397 | 1,397 | ||||||||||||||
Bank owned life insurance | 21,985 | 21,837 | 21,684 | 21,530 | 21,377 | ||||||||||||||
Other assets | 39,477 | 33,547 | 28,978 | 29,906 | 23,400 | ||||||||||||||
Total assets | $ | 2,592,330 | $ | 2,450,948 | $ | 2,461,902 | $ | 2,367,581 | $ | 2,210,707 | |||||||||
Noninterest-bearing deposits | $ | 615,225 | $ | 593,751 | $ | 604,278 | $ | 630,689 | $ | 684,245 | |||||||||
Interest-bearing deposits | 1,397,344 | 1,276,432 | 1,296,601 | 1,212,650 | 1,158,409 | ||||||||||||||
Total deposits | 2,012,569 | 1,870,183 | 1,900,879 | 1,843,339 | 1,842,654 | ||||||||||||||
Short-term borrowings | 75,000 | 85,000 | 61,000 | 30,000 | 85,000 | ||||||||||||||
Other borrowed funds | 200,569 | 200,569 | 200,569 | 200,569 | 569 | ||||||||||||||
Subordinated debentures | 9,222 | 9,196 | 9,169 | 9,142 | 9,115 | ||||||||||||||
Other liabilities | 5,840 | 6,183 | 9,190 | 8,280 | 7,076 | ||||||||||||||
Total liabilities | 2,303,200 | 2,171,131 | 2,180,807 | 2,091,330 | 1,944,414 | ||||||||||||||
Common stock | 13,080 | 12,958 | 12,905 | 12,869 | 12,845 | ||||||||||||||
Capital surplus | 215,015 | 212,649 | 211,349 | 210,512 | 209,883 | ||||||||||||||
Retained earnings | 63,309 | 57,262 | 51,491 | 46,020 | 40,766 | ||||||||||||||
Accumulated other comprehensive (loss) income | (2,274 | ) | (3,052 | ) | 5,350 | 6,850 | 2,799 | ||||||||||||
Shareholders' equity | 289,130 | 279,817 | 281,095 | 276,251 | 266,293 | ||||||||||||||
Total liabilities and equity | $ | 2,592,330 | $ | 2,450,948 | $ | 2,461,902 | $ | 2,367,581 | $ | 2,210,707 |
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Allegiance Bancshares, Inc. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||
INTEREST INCOME: | |||||||||||||||||||
Loans, including fees | $ | 25,260 | $ | 24,232 | $ | 24,057 | $ | 22,839 | $ | 22,228 | |||||||||
Securities | |||||||||||||||||||
Taxable | 498 | 478 | 607 | 452 | 270 | ||||||||||||||
Tax-exempt | 1,624 | 1,642 | 1,505 | 1,086 | 811 | ||||||||||||||
Deposits in other financial institutions | 130 | 129 | 150 | 150 | 142 | ||||||||||||||
Total interest income | 27,512 | 26,481 | 26,319 | 24,527 | 23,451 | ||||||||||||||
INTEREST EXPENSE: | |||||||||||||||||||
Demand, money market and savings deposits | 654 | 673 | 651 | 569 | 544 | ||||||||||||||
Certificates and other time deposits | 1,957 | 1,947 | 1,872 | 1,665 | 1,560 | ||||||||||||||
Short-term borrowings | 324 | 90 | 63 | 106 | 139 | ||||||||||||||
Subordinated debt | 120 | 128 | 123 | 120 | 117 | ||||||||||||||
Other borrowed funds | 329 | 221 | 201 | 118 | 7 | ||||||||||||||
Total interest expense | 3,384 | 3,059 | 2,910 | 2,578 | 2,367 | ||||||||||||||
NET INTEREST INCOME | 24,128 | 23,422 | 23,409 | 21,949 | 21,084 | ||||||||||||||
Provision for loan losses | 1,343 | 900 | 2,214 | 1,645 | 710 | ||||||||||||||
Net interest income after provision for loan losses | 22,785 | 22,522 | 21,195 | 20,304 | 20,374 | ||||||||||||||
NONINTEREST INCOME: | |||||||||||||||||||
Nonsufficient funds fees | 199 | 178 | 175 | 145 | 163 | ||||||||||||||
Service charges on deposit accounts | 195 | 177 | 182 | 173 | 145 | ||||||||||||||
Gain on sale of branch assets | — | — | — | — | 2,050 | ||||||||||||||
Gain on sale of securities | — | 30 | — | — | — | ||||||||||||||
Gain on sales of other real estate | — | 206 | 60 | — | — | ||||||||||||||
Bank owned life insurance | 148 | 153 | 154 | 153 | 166 | ||||||||||||||
Other | 799 | 734 | 703 | 741 | 780 | ||||||||||||||
Total noninterest income | 1,341 | 1,478 | 1,274 | 1,212 | 3,304 | ||||||||||||||
NONINTEREST EXPENSE: | |||||||||||||||||||
Salaries and employee benefits | 10,562 | 10,627 | 9,781 | 9,177 | 9,273 | ||||||||||||||
Net occupancy and equipment | 1,427 | 1,238 | 1,260 | 1,214 | 1,232 | ||||||||||||||
Depreciation | 400 | 391 | 404 | 415 | 417 | ||||||||||||||
Data processing and software amortization | 695 | 703 | 655 | 622 | 653 | ||||||||||||||
Professional fees | 895 | 857 | 442 | 401 | 534 | ||||||||||||||
Regulatory assessments and FDIC insurance | 589 | 485 | 396 | 355 | 345 | ||||||||||||||
Core deposit intangibles amortization | 195 | 195 | 196 | 195 | 199 | ||||||||||||||
Communications | 247 | 237 | 264 | 274 | 280 | ||||||||||||||
Advertising | 263 | 319 | 228 | 197 | 201 | ||||||||||||||
Other | 1,276 | 1,135 | 1,269 | 1,073 | 1,119 | ||||||||||||||
Total noninterest expense | 16,549 | 16,187 | 14,895 | 13,923 | 14,253 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 7,577 | 7,813 | 7,574 | 7,593 | 9,425 | ||||||||||||||
Provision for income taxes | 1,530 | 2,042 | 2,103 | 2,339 | 3,070 | ||||||||||||||
NET INCOME | $ | 6,047 | $ | 5,771 | $ | 5,471 | $ | 5,254 | $ | 6,355 | |||||||||
EARNINGS PER SHARE | |||||||||||||||||||
Basic | $ | 0.46 | $ | 0.45 | $ | 0.42 | $ | 0.41 | $ | 0.49 | |||||||||
Diluted | $ | 0.45 | �� | $ | 0.44 | $ | 0.42 | $ | 0.40 | $ | 0.49 |
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Allegiance Bancshares, Inc. | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars and share amounts in thousands, except per share data) | ||||||||||||||||||||
Net income | $ | 6,047 | $ | 5,771 | $ | 5,471 | $ | 5,254 | $ | 6,355 | ||||||||||
Earnings per share, basic | $ | 0.46 | $ | 0.45 | $ | 0.42 | $ | 0.41 | $ | 0.49 | ||||||||||
Earnings per share, diluted | $ | 0.45 | $ | 0.44 | $ | 0.42 | $ | 0.40 | $ | 0.49 | ||||||||||
Return on average assets(A) | 0.96 | % | 0.93 | % | 0.90 | % | 0.91 | % | 1.19 | % | ||||||||||
Return on average equity(A) | 8.61 | % | 8.25 | % | 7.77 | % | 7.79 | % | 9.70 | % | ||||||||||
Return on average tangible equity(A)(B) | 10.15 | % | 9.79 | % | 9.21 | % | 9.30 | % | 11.67 | % | ||||||||||
Tax equivalent net interest margin(C) | 4.38 | % | 4.32 | % | 4.39 | % | 4.32 | % | 4.45 | % | ||||||||||
Efficiency ratio(D) | 64.98 | % | 65.09 | % | 60.34 | % | 60.11 | % | 63.80 | % | ||||||||||
Liquidity and Capital Ratios | ||||||||||||||||||||
Equity to assets | 11.15 | % | 11.42 | % | 11.42 | % | 11.67 | % | 12.05 | % | ||||||||||
Common equity Tier 1 capital | 11.10 | % | 11.44 | % | 11.40 | % | 11.50 | % | 11.57 | % | ||||||||||
Tier 1 risk-based capital | 11.51 | % | 11.87 | % | 11.84 | % | 11.97 | % | 12.04 | % | ||||||||||
Total risk-based capital | 12.35 | % | 12.72 | % | 12.68 | % | 12.72 | % | 12.76 | % | ||||||||||
Tier 1 leverage capital | 10.28 | % | 10.35 | % | 10.25 | % | 10.43 | % | 10.92 | % | ||||||||||
Tangible equity to tangible assets(B) | 9.65 | % | 9.82 | % | 9.82 | % | 10.00 | % | 10.26 | % | ||||||||||
Other Data | ||||||||||||||||||||
Weighted average shares: | ||||||||||||||||||||
Basic | 13,021 | 12,913 | 12,882 | 12,857 | 12,840 | |||||||||||||||
Diluted | 13,377 | 13,180 | 13,108 | 13,039 | 12,967 | |||||||||||||||
Period end shares outstanding | 13,080 | 12,958 | 12,905 | 12,869 | 12,845 | |||||||||||||||
Book value per share | $ | 22.10 | $ | 21.59 | $ | 21.78 | $ | 21.47 | $ | 20.73 | ||||||||||
Tangible book value per share(B) | $ | 18.80 | $ | 18.24 | $ | 18.40 | $ | 18.06 | $ | 17.30 |
(A) | Interim periods annualized. |
(B) | Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on page 9 of this Earnings Release. |
(C) | Net interest margin represents net interest income divided by average interest-earning assets. |
(D) | Represents noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of branch assets, loans and securities. Additionally, taxes and provision for loan losses are not part of this calculation. |
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Allegiance Bancshares, Inc. | ||||||||||||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||||||||||||||||||||||
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 | $ | 1,928,333 | $ | 25,260 | 5.31 | % | $ | 1,847,122 | $ | 24,232 | 5.22 | % | $ | 1,663,711 | $ | 22,228 | 5.37 | % | ||||||||||||||
Securities | 325,911 | 2,122 | 2.64 | % | 314,387 | 2,120 | 2.68 | % | 186,460 | 1,081 | 2.33 | % | ||||||||||||||||||||
Deposits in other financial institutions | 53,338 | 130 | 0.99 | % | 68,974 | 129 | 0.74 | % | 91,824 | 142 | 0.62 | % | ||||||||||||||||||||
Total interest-earning assets | 2,307,582 | $ | 27,512 | 4.84 | % | 2,230,483 | $ | 26,481 | 4.72 | % | 1,941,995 | $ | 23,451 | 4.86 | % | |||||||||||||||||
Allowance for loan losses | (18,200 | ) | (17,579 | ) | (13,487 | ) | ||||||||||||||||||||||||||
Noninterest-earning assets | 259,315 | 247,465 | 226,946 | |||||||||||||||||||||||||||||
Total assets | $ | 2,548,697 | $ | 2,460,369 | $ | 2,155,454 | ||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 130,909 | $ | 100 | 0.31 | % | $ | 107,180 | $ | 84 | 0.31 | % | $ | 95,506 | $ | 67 | 0.28 | % | ||||||||||||||
Money market and savings deposits | 486,779 | 554 | 0.46 | % | 507,362 | 589 | 0.46 | % | 433,139 | 477 | 0.44 | % | ||||||||||||||||||||
Certificates and other time deposits | 685,169 | 1,957 | 1.16 | % | 681,425 | 1,947 | 1.14 | % | 614,216 | 1,560 | 1.02 | % | ||||||||||||||||||||
Short-term borrowings | 145,278 | 324 | 0.91 | % | 57,478 | 90 | 0.63 | % | 126,374 | 139 | 0.44 | % | ||||||||||||||||||||
Subordinated debt | 9,205 | 120 | 5.28 | % | 9,178 | 128 | 5.55 | % | 9,098 | 117 | 5.19 | % | ||||||||||||||||||||
Other borrowed funds | 200,570 | 329 | 0.66 | % | 200,570 | 221 | 0.44 | % | 569 | 7 | 5.23 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 1,657,910 | $ | 3,384 | 0.83 | % | 1,563,193 | $ | 3,059 | 0.78 | % | 1,278,902 | $ | 2,367 | 0.74 | % | |||||||||||||||||
Noninterest-Bearing liabilities: | ||||||||||||||||||||||||||||||||
Noninterest-bearing demand deposits | 600,006 | 610,310 | 605,969 | |||||||||||||||||||||||||||||
Other liabilities | 5,892 | 8,743 | 7,186 | |||||||||||||||||||||||||||||
Total liabilities | 2,263,808 | 2,182,246 | 1,892,057 | |||||||||||||||||||||||||||||
Shareholders' equity | 284,889 | 278,123 | 263,397 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,548,697 | $ | 2,460,369 | $ | 2,155,454 | ||||||||||||||||||||||||||
Net interest rate spread | 4.01 | % | 3.94 | % | 4.12 | % | ||||||||||||||||||||||||||
Net interest income and margin | $ | 24,128 | 4.24 | % | $ | 23,422 | 4.18 | % | $ | 21,084 | 4.37 | % | ||||||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 24,907 | 4.38 | % | $ | 24,219 | 4.32 | % | $ | 21,483 | 4.45 | % |
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Allegiance Bancshares, Inc. | |||||||||||||||||||
Financial Highlights | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
As of and For the Three Months Ended | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Period-end Loan Portfolio: | |||||||||||||||||||
Commercial and industrial | $ | 425,154 | $ | 416,752 | $ | 402,273 | $ | 382,795 | $ | 372,056 | |||||||||
Mortgage warehouse | 64,132 | 67,038 | 76,043 | 75,554 | 86,157 | ||||||||||||||
Real Estate: | |||||||||||||||||||
Commercial real estate (including multi-family residential) | 961,212 | 891,989 | 848,939 | 806,771 | 770,252 | ||||||||||||||
Commercial real estate construction and land development | 175,264 | 159,247 | 167,936 | 161,572 | 167,810 | ||||||||||||||
1-4 family residential (including home equity) | 250,881 | 246,987 | 228,651 | 214,442 | 209,704 | ||||||||||||||
Residential construction | 99,648 | 98,657 | 93,923 | 101,677 | 100,611 | ||||||||||||||
Consumer and other | 10,147 | 10,965 | 12,957 | 10,872 | 10,858 | ||||||||||||||
Total loans | $ | 1,986,438 | $ | 1,891,635 | $ | 1,830,722 | $ | 1,753,683 | $ | 1,717,448 | |||||||||
Asset Quality: | |||||||||||||||||||
Nonaccrual loans | $ | 19,315 | $ | 15,788 | $ | 15,882 | $ | 7,124 | $ | 6,979 | |||||||||
Accruing loans 90 or more days past due | — | 911 | — | — | — | ||||||||||||||
Total nonperforming loans | 19,315 | 16,699 | 15,882 | 7,124 | 6,979 | ||||||||||||||
Other real estate | 365 | 1,503 | 1,138 | 1,397 | 1,397 | ||||||||||||||
Other repossessed assets | 260 | 286 | 30 | 128 | 131 | ||||||||||||||
Total nonperforming assets | $ | 19,940 | $ | 18,488 | $ | 17,050 | $ | 8,649 | $ | 8,507 | |||||||||
Net charge-offs (recoveries) | $ | 567 | $ | 174 | $ | (54 | ) | $ | 485 | $ | 51 | ||||||||
Nonaccrual loans: | |||||||||||||||||||
Commercial and industrial | $ | 8,933 | $ | 3,896 | $ | 4,983 | $ | 2,723 | $ | 2,700 | |||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||
Real Estate: | |||||||||||||||||||
Commercial real estate (including multi-family residential) | 9,726 | 11,663 | 10,495 | 4,141 | 3,293 | ||||||||||||||
Commercial real estate construction and land development | 70 | — | — | — | — | ||||||||||||||
1-4 family residential (including home equity) | 574 | 217 | 11 | 227 | 934 | ||||||||||||||
Residential construction | — | — | — | — | — | ||||||||||||||
Consumer and other | 12 | 12 | 393 | 33 | 52 | ||||||||||||||
Total nonaccrual loans | $ | 19,315 | $ | 15,788 | $ | 15,882 | $ | 7,124 | $ | 6,979 | |||||||||
Asset Quality Ratios: | |||||||||||||||||||
Nonperforming assets to total assets | 0.77 | % | 0.75 | % | 0.69 | % | 0.37 | % | 0.38 | % | |||||||||
Nonperforming loans to total loans | 0.97 | % | 0.88 | % | 0.87 | % | 0.41 | % | 0.41 | % | |||||||||
Allowance for loan losses to nonperforming loans | 96.75 | % | 107.26 | % | 108.20 | % | 209.39 | % | 197.12 | % | |||||||||
Allowance for loan losses to total loans | 0.94 | % | 0.95 | % | 0.94 | % | 0.85 | % | 0.80 | % | |||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.12 | % | 0.04 | % | (0.01 | )% | 0.11 | % | 0.01 | % |
8
Allegiance Bancshares, Inc.
GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures
(Unaudited)
Allegiance’s management uses certain non−GAAP (generally accepted accounting principles) financial measures to evaluate its performance. Allegiance believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance. Allegiance excluded the one time sale of two Central Texas branch locations during the first quarter 2016 as noted within the narrative, as Allegiance believes this transaction was not indicative of its recurring operating results. Allegiance believes that management and investors benefit from referring to these non-GAAP financial measures in assessing Allegiance’s performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the ratio of tangible common 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 | ||||||||||||||||||||
2017 | 2016 | |||||||||||||||||||
March 31 | December 31 | September 30 | June 30 | March 31 | ||||||||||||||||
(Dollars and share amounts in thousands, except per share data) | ||||||||||||||||||||
Total shareholders' equity | $ | 289,130 | $ | 279,817 | $ | 281,095 | $ | 276,251 | $ | 266,293 | ||||||||||
Less: Goodwill and core deposit intangibles, net | 43,249 | 43,444 | 43,639 | 43,835 | 44,030 | |||||||||||||||
Tangible shareholders’ equity | $ | 245,881 | $ | 236,373 | $ | 237,456 | $ | 232,416 | $ | 222,263 | ||||||||||
Shares outstanding at end of period | 13,080 | 12,958 | 12,905 | 12,869 | 12,845 | |||||||||||||||
Tangible book value per share | $ | 18.80 | $ | 18.24 | $ | 18.40 | $ | 18.06 | $ | 17.30 | ||||||||||
Net income attributable to shareholders | $ | 6,047 | $ | 5,771 | $ | 5,471 | $ | 5,254 | $ | 6,355 | ||||||||||
Average shareholders' equity | $ | 284,889 | $ | 278,123 | $ | 280,065 | $ | 271,128 | $ | 263,397 | ||||||||||
Less: Average goodwill and core deposit intangibles, net | 43,345 | 43,539 | 43,735 | 43,930 | 44,319 | |||||||||||||||
Average tangible shareholders’ equity | $ | 241,544 | $ | 234,584 | $ | 236,330 | $ | 227,198 | $ | 219,078 | ||||||||||
Return on average tangible equity | 10.15 | % | 9.79 | % | 9.21 | % | 9.30 | % | 11.67 | % | ||||||||||
Total assets | $ | 2,592,330 | $ | 2,450,948 | $ | 2,461,902 | $ | 2,367,581 | $ | 2,210,707 | ||||||||||
Less: Goodwill and core deposit intangibles, net | 43,249 | 43,444 | 43,639 | 43,835 | 44,030 | |||||||||||||||
Tangible assets | $ | 2,549,081 | $ | 2,407,504 | $ | 2,418,263 | $ | 2,323,746 | $ | 2,166,677 | ||||||||||
Tangible equity to tangible assets | 9.65 | % | 9.82 | % | 9.82 | % | 10.00 | % | 10.26 | % |
9