ABTX - Earnings call transcript Q1 2021 | Allegiance Bancshares Inc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Allegiance Bancshares First Quarter 2021 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Courtney Theriot, Executive Vice President and Chief Accounting Officer. Please proceed.

Courtney Theriot

thank all and our have operator, today. call you, you who to joined Thank General call Vice led President President the and will CEO earnings Okan Company Egge, morning's This be and and President Risk President Company; of Bank; Kuzdzal, Counsel. CFO; Vitulli, Shanna Officer Executive CEO the Vice of Executive by Bank; Ray President Chief and of of Vice and Allegiance company Akin, Allegiance Executive Paul and the Retzloff, Steve of

made, additional the as may obligation of to except any statements, the about Before by management's statements by begin any to beliefs forward-looking are we on Please to is such Securities everyone website in publicly we covered XXXX I morning's earnings available disclaim time today, in act. at update see at remind made of this with last safe which Private risk is allegiancebank.com the future of that be note text need in all remarks release, factors the the as give guidance that reflection statement today some the be results, to intend page and the We if a release provisions the information for change. associated law. is statements. amended. only about Litigation the subject as for of our Reform that guidance forward-looking Act harbor statements Also constitute We forward-looking required forward-looking contained statements defined such

presentation have an investor also website. our provided We on

Steve the questions. turn and review open comments, today's at used allow remarks, we line CEO, for will is Retzloff. the to available not time conclusion being it our for it guide Although our over now for of a this call I time. At the is as

Steve Retzloff

attendance. We Courtney. to you everyone thank you, for and conference welcome our call, your Thank

growth XX to of a our XX.X% growth by share quarter, the $X.XX, $XXX highlighted or deposit bringing represented the billion record XX.X% start million for total first of months The past plus $X.XX very per (sic) earnings significant during quarter productive deposit the year, [ph]. over

Assets the remain over $X.XX increased during to of in All with now to billion in, last funded over $X.XX have and of a loans, to quarter. million quarter. capital share we $XXX strong being position stock per we we as $X.XX our PPP liquidity, in and increased common the first relating dividend funded billion

very That approximately production. totaling improving to said, quarter, costs third-party as of quarter record Our low the increased recognition provision write-downs, PPP aided of furthered by $XXX,XXX our PPP due in charge-offs staff in augmentation in and net and little an we the Paul having way added will and the earnings absorbed was during number the the incurred by accelerated the from came fees that describe, which quarter overtime and asset expenses economy.

production from not loans outpouring for million extraordinary PPP continued as in loan from Our of the but $XXX of effort stakeholders during benefited the of of number $XXX a total only quarter. staff, booked loans, originated million the core quarter large the new also our we

approximately we who muscle as through to the use the to deepen X,XXX solidly focus customers new for final their redirect and our assisted we depository effort. generating phase, traditional now lending able be PPP relationships, completion that are the enhanced will connection With to our forgiveness pipelines into staff relationship already and our production PPP entire with proven moving be core our further will and which established, building

our our are asset pleased We to with quality, and ORE. we're reduce overall able significantly

traffic, broader our on the customers, community sectors. sign. in a which streets is Houston of now showing that be day pandemic and the used remain our every activity welcome had We to But are alert of heavy as and the signs continue impact to those to curse, particularly the has higher-risk economic

Although sense optimism, a full timing remain we all steadily and of to complete the as cautious sectors. of growing with a rebound for

From Given focus high market smaller and us, is to to well-managed That and differentiation levels to believe we this loan a strategy we lending now direction on market more integrated beginning acquired average and commercial this warranted handling to this platform. appreciably workflow incremental our have for attract retain entire loans. step and to customers our larger implement more but an continue quite service are origination is new while in effectively marginal, opportunities. expected penetration perspective, we a our as loan system, And growing provides robust but affords quality our said, not and not platform and the lending we that system relationships. we beginning the for size PPP size change, deployed only growth operational are which we

by more add with commitment market and Allegiance our first-hand penetration the to table. accelerating bring value to extraordinary have their brand what Finally, an the into evolved continues and and customers, built who now value into had level to has service and can experience our our of franchise has more appreciation of

we of past position year, further Given believe over how be community we the we over responded I that the deepening year. proven clear to Houston our region, this of the the are in will needs choice even and coming bank the

well results. Paul, as describe by results followed as deposit on cover will an Ray will who credit; our outlook our Next, production loan and financial

then We open for will questions. call the

Ray Vitulli

Steve. Thanks,

with saw first-round customers, business our our PPP process. as The in while new, of work we a second the the of back through bankers forgiveness with XXXX existing origination and the round both assisting first borrowers quarter program

As way PPP effort generate customer expand meet allowing while a and for the demand mentioned in relationships. round capacity to designed bankers to second last our quarter, we

XX pleased economic the are bank, customers and in we conversion X,XXX non-PPP from million, we PPP, As months, continued $XXX representing nearly of XX% a originations of level total of gains second-highest extremely by report market attracted X,XXX, core year. result, our PPP to the share improving X,XXX over growth bringing to conditions, new new to customer driven the acquisition history loan the past new from over our effort. addition the past customers the And also in customers

have We nearly to mobile originations of adoption service remote transfers. electronic ACH every increased deposit also for banking and wire capture utilization to seen

with We and review and monitor to ourselves customer on expectations and electronic to banking what to continue to position early welcome application over Of platform the service product of of March, to brick-and-mortar demands since how also submitted new offerings and deliver up meet footprint which been our in borrowers applications loans our billion forgiveness, optimize we we was be simple over loans of to incorporated originated. to PPP our opportunity. half X,XXX believe to forgiveness $XXX as $XXX X,XXX are majority received have $XXX,XXX, we totaling to million for regards of been growth the approved news loans or use an able market form. received X,XXX $XXX into having our million. PPP XX, million, With extraordinary those, In share this $X loans March over funds forgiveness execute we the SBA, the about totaling PPP for

helping amount, XX, process, as XX% remain payment borrowers loans In core our with through eligible of further of April of outstanding March also approximately billion assistance balances deferral on on provided $XX.X Of core to or million we to addition this deferrals loans. at XX. the million XXXX, $X.XX loan $XX.X reduced PPP of customers to

the quarter $X.X Total results. $X.XX increase an during loans, our core excludes first which loans, to now PPP quarterly at Moving the billion, million operating quarter. ended of

X.XX%. million advances of compared weighted loans million March During booked The of to Carried XX a a million XX. $XX $XXX to a paydowns $XXX which million, compared were quarter, $XXX quarter staff of $XXX weighted in quarter funded quarter average team of had $XXX and in of million of rate fourth core new rate first by XXXX. quarter December loans million core level of generated, first loans experienced our loans lending were loans average which million the core rate and to X.XX% with million fourth to level $XXX new at a $XXX core core during X.XX%. average million a $XXX at the that of weighted of the paid-off Paid-off by were funded the of the of

overall ending the the quarter weighted our in, funded XXXX. We period-end was which rate average to the compared rate of core average XX, charge quarter X.XX%, as quarter charge X.XX% of report weighted are the XXXX core interest rate. X.XX% and points, first quarter on our pleased weighted X.XX% average on basis to below fourth All to of -- third XXXX decreased December the X at loans X.X rate just is loans weighted new equal

portfolio hotel we oil portfolio. our Those past heightened risk and/or the on Over and have that loan provided could pandemic. several information the prices to our and being restaurant energy portfolio, due gas categories our COVID few quarters, bar have and

XX other payoffs, accrual. totaled during assets, loans bar XX from oil in additions to of of quarter in the XX.X% to due aggregate, increase sales. placed our the largest to total loans, X.XX% quarter of of of upgrades back And funded on at a the hospitality hotel of ORE, $XX million portion. continued loans, $X.X March of the ORE portion. totaled including from the real from the relationships, million or the of totaled $XX.X X.XX% nonaccrual offset $X.X restaurant million $X.X from to portfolio LTV million on was was $X.X portion. $X.X $X.X $XX.X by partially for of to the Nonperforming decreased with or a and million primarily million were position. or CRE estate million of ORE and asset in of and Nonaccrual in million quarter. portfolio CRE million average million million, ended XX.X% $XX.X to of X to totaled The basis additional in quarter, sale fourth million during As an $XX.X which $XXX,XXX $XXX due and addition end quarter primarily of average nonaccruals the property. net quarter million of $X.X quality smaller an our first assets, payments million, million that to remain XX, the on million $X.X remaining with relationships. with The compared primarily XX.X% $X.X owned funded during X.X% LTV our increased manageable million was average a $X.X XX The both due portfolio an down gas the loans, $XXX CRE the XX on points total In loans LTV and

residential minimal now property. one points. ORE the Our is were quarter of annualized basis rate Charge-offs an comprised X of for at

Specific XX. watch X.XX% increased of evaluated of December XX. of March quarter for loans at XX broader March total XX December the list, reserves our X.XX% as Criticized loans XX% our at as loans XX. to classified to total increased from XX% X.XX% compared at X.XX% of loans December terms of a ended In individually as loans percentage at to compared to

quarter $XXX.X deposit XX quarter. quarter as million well XX.X% noninterest-bearing the as quarter. in in front, new in the the in compared first $XXX.X from and a we year year X% quarter December of the for accounts. XX.X% XX. customers On carried year and associated deposits fourth category, and increased increase prior result saw XX as was deposit for for the by the the over accounts million deposits $XXX.X the up was ratio that, total million ago March $X.XX to an ago our higher during which fourth our billion over over total primarily noninterest-bearing balances deposit increase to The first With with the PPP quarter

an jobs now ever-strengthening front our prospects data are previously opportunities our loan Texas March that the growth level banking in trend word shows over and month Workforce loan March, the us, the created region, recovery increased turn of recovered loan Paul. mentioned, start poised April. from seeing in jobs to With monthly in the downward has bankers it been we referring the CFO, and payment originations, Houston has deferrals area both signs in the or describe to of to loan of our I historical of is jobs. XX,XXX lost acquisition disruption market of XX,XXX that business success, our Houston used And last conversion and jobs PPP reflected XXX,XXX for position we Commission well owners Recent XX% the organic and March, economic core above outsized. industry have average new of in pipeline, to of performance. As that and Houston are a to with customer being healthy loan through

Paul Egge

Ray. Thanks,

or We of $X.XX share are posting quarter per diluted million $X.XX million XXXX. share very per $XX.X the proud first the of fourth and in net diluted per $X.XX as to to first or be quarter $X.X or million record compared in diluted $XX quarter income share

in lower loans, higher recognized PPP elevated million expenses expenses, primarily the expense quarter back earnings on have $XXX,XXX which to quarter. were was Yield X.XX% during which $X.X adjusted compared the the earnings quarter, record to most lower increase was by Pretax quarter, first fourth offset X.XX% power quarter. recognized $X.X fee in the million nonrecurring the partially prior expenses the closure was quarter, related an in income $X and saw the X.X% our million Interest in loans the in compared quarter nonrecurring we to fourth million ago $X $XX.X income to been key in to fourth expense income $XX.X in decreased fourth for during pretax income. was million, for interest quarter were asset where write-down branch loans, for the from on the $XX.X compared to quarter. the total from quarter. first and approximately Our $XX.X the on quarter which into of quarter, million to approximately quarter core despite loan the ago the the significant for in interest And PPP a pre-provision year income the million or Net during the by due pre-provision million pretax would of million. measure million of quarter. and the revenue $XX quarter Adding year revenue interest provision to in $XX.X $X.X relating driver increase an first most million X.XX% as as were for

Total PPP quarter the yield fourth been for first have on the fourth year well loans X.XX% reflecting mix as Excluding quarter, as for the the in asset related X.XX% was in the quarter and quarter. interest-earning on PPP and in the X.XX% year a from X.XX% X.XX% revenue, proportion first assets higher in yield totals. earning in X.XX% a loans securities includes down and would ago quarter, change ago significant loan quarter, that within loans the of

have related total been the revenue, for quarter. on X.XX% versus and loans PPP Excluding the would X.XX% in first yield fourth earning assets quarter

quarter. of XXX of respect quarter end, to XX fourth basis points to PPP year interest-bearing points from XX deferred to we Before of basis had fee I points move XX for basis I of the first for cost fourth basis remaining on, ago our should approximately XX $XX quarter as million liabilities expense, in income versus points note that interest the relating the decrease quarter. quarter funds points overall was basis cost continued With first the to net loans. and The for the quarter in

CD continued improvement going to costs to our as book particularly see expect reprice lower. We in funding the forward, continues

composition our X.XX% of taxable equivalent lower of the the to in fourth interest a offsetting was the and shift interest in in compared quarter ago income earning for expense as the year quarter. X.XX% our margin quarter help the X.XX% with net PPP QX, So recognition net significant fee in assets,

net and PPP the X.XX% interest first have quarter. for balances Excluding loan related margin revenue, would been

earning how pricing. feel asset fourth to due income $X a increased to $X.X to Going include discipline for for expenses our for first to quarter-over-quarter, NIMs the funding to XX.XX% the quarter. quarter maintain loan The and loan assets. the mix to benefits OREO million forward, prior drag core from first million on million first Total margin plays relatively quarter quarter potential XX.XX% the in to $XX.X core well out. $XXX,XXX changes on increases story quarter, compared $X.X in of be The year on compared lower on expense other decreasing line. and in the composition and noninterest from was liquidity positioned for million a primarily depending nonrecurring decreased the Noninterest the loss the million fourth growth our increased aforementioned from and the net quarter. in efficiency through excess $XX.X Other maintaining to due the and said, the we fourth difference to our optimizing That have strong write-downs. primarily sale to XX.XX% the asset the quarter line ratio expenses salary is interest

at the points an XXX been representing and at first asset efficiency losses of team, have re-upped authorization to authorization quarter would the ROATCE X write-downs, million and core Allegiance loans over total quarter a Excluding of driven I March our on note during on we bank. should XXX the X.XX% are capital, to environment, XX.XX%. will All respectively, operating PPP losses in first and the common quarter, loan COVID-impacted share the points which our Houston's ratio of per or a franchise both bigger provision representing XX, and replace now Reflecting XXXX loan an shareholder quarter I first in $X.XX basis repurchases, non-PPP ended we largest $XX.X was and share is for first been of diluted for beyond. And market at for $XX.XX, quarter. we've call credit back tangible we average produced highs. share shares for $XXX,XXX in turn all-time And continue for adding that the The topic of basis as another the was to over balances. $XX.XX. that tremendous Steve. a be line, million, dedicated allowance are the billion highs. feel we well. dedication price near or with on ROAA Thanks Bottom of of ago proud year over drive something repurchase quarter, positioned approximately Quarter year amazing end, the increase the repurchase XXXX. value did stock expires weighted company of XX.X% end and per book all-time XXX,XXX as the and and the levels the share all, declared and in that makes on very dividend regionally XX.XX%, at at To in well to proud value to by our since share successful assets liquidity very which ever to to success $X.X better a reserves than

Steve Retzloff

for to operator to Thanks, that, the turn call I Paul. line With now will the the open over questions.

Operator

[Operator Instructions] David Raymond Feaster Our question comes first with James. from

David Feaster

originations PPP. distraction It really despite from were strong the sounds like

of and kind pipeline clients. you're versus How curious is is either from of of pulse and or Just much the new that more from how kind the your confident customers. the what from shaping existing production And lender are PPP guess, I up maybe willing program? client new acquisition of invest hearing coming the to just, clients hires

Ray Vitulli

Thanks, David. Yes.

So side. target talking that saying was -- the pipeline about. and while that's established the levels. field the acquisition The -- requests doing that -- pipeline strong deals coming place And new the that PPP these we a mood it work pipeline from would are we existing coming to and are levels existing, But versus these We're in -- the really maybe in our on that is grows, is we the this we're have that's pre-pandemic-type customers. say at obviously, and very good, first the when as a of still customer with from more I'd XX-XX bit probably it's little like that quarter. our of growth more

feel about more for what and good the future prospects that So are originations.

David Feaster

up always encouraging. guys how lenders. job a great have new picking Okay. And done You turning? hires just then are new That's

the the disruption in I Just have increase hires? how pipeline an and maybe being you bonuses conversations? paid And for new some seen with guess, in is market,

Ray Vitulli

Yes.

have conversations We picked up. have --

pools hires usually in of you analyst if in our COVID back of We quarters quarter environment, because first is have hire out over of one quarter. X our lender for little right, homegrown, You're light X. the and first of the X that, of out bonus. had we did the a because a X And total look producer past a

about good we conversations do the additions. in One are the -- X what given we picking -- And So, pretty and disruption. kind there's yes, the of we'll X disruption. quarters, making is circumstances up, see the the feel being M&A those forms happens world. over -- past But of some

the their kind one and and that's of as the business to Those is rules that. in customers have hoop a The disruption those means. for space -- what space -- of in competition as banking conversations other banking bankers, that and our for our around business we continues change hanging

David Feaster

allowed encouraging steepening trended I to new in sounds these shift then mix? you'll the guess, That's do larger despite troughing towards here. pricing And you Or how to do Okay. new be the better just yields? more might premium pricing of still about It going that's yields great. a you that curve in the loan bit? a you credits think Has has get impact for do like think be may talked all? loan hear rate at you the the recently? originations. able think And it's upstream pricing of function maybe Or of levels

Ray Vitulli

good I feel new that X past we but X.XX%, around competitive. mean, of rate hanging the the very as X.XX%, still it's production Well, on quarters about

things and not sure but about pleased really with X quarters So last hitting landed. we -- where floor the where we're the there, I'm

Steve Retzloff

Yes. And is this Steve.

maximum it's number size, a you're have loan lot of There's multiple relationships. the loans, relationship customers deal. have really, a restrict if next then miss -- larger that terms to the at multiple of to In -- going a we're larger And certain projects. that looking loans, you -- we

up so we're that not little bigger to opening much more So loans this just a door larger the opening -- relationships. kind door bit. appreciably for It's of

Operator

comes Milsaps Piper question Brad next with Our from Sandler.

Brad Milsaps

sense how customers translated tough XX I into X,XXX number. balances. the actual of can translate in seeing handicap, a loans which this much is when the thus to like looks tremendous of books. It outstanding loan guys' added you've deposit those into this really growth months, with do production but far, say kind Just some you're probably you you on is PPP think correctly actually trying you participation the a over heard I of program? get think I Ray, to know last pull have your forward

Ray Vitulli

X,XXX question. at mean, customers, full this look of mean, maybe moment we PPP, something other seeing PPP I X/X call Yes. the When convert Great at the to that than we and penetrate low, we're try has you that I the to those loan. as of what

I So work working process additional mean, a it's to generate we're that. on and business, through and

So up several I mean -- were side round. -- existing from a as number every we touches think quarter. not the second pick the of I the customers round we'll it's -- gains these some to customers, then we with have origination side but And same to and on only first forgiveness on our the to -- the

have of But going of just we over plus it's effort about incremental these, points we -- have opportunity. us what's So to number so conversion optimistic next that the be I to convert an with quarters. a few touch think ahead

Paul Egge

they be which impact reason an loan their PPP getting the liquidity has may to stands customers program, loan and are on positioning. how through demand PPP

when ready of -- PPP be in term they're time past. and that some loan, the lag beneficiary the could recent this program So they're could being involve the for near their next

Ray Vitulli

Yes, loan. for incremental

Brad Milsaps

Sure, sure.

guys of year, by near then what would to back maybe term, that the say grows next up start type hopefully, can low you so kind of single-digit ramping you've maybe rate closer done historically? you And kind in can Ray, and

Ray Vitulli

on growth entire Are the loan? you talking on whole in the all

Brad Milsaps

PPP. ex Yes,

Ray Vitulli

I core Yes, Yes, Yes. think loans. that. yes,

Brad Milsaps

resolution curious some kind you still of about of the Okay, loans thinking -- you're then on that of issues guys are how having And okay. coming pandemic. out are the just

kind of had think just criticized, classified sounded I under it like stabilized X%.

how half the of Just get going a as of reserve back the to kind year might that level how of the losses of -- about thinking guys kind kind forward. relate provision potential the of of sense approaching get to are and wanted how you you're in and your you

Steve Retzloff

again, Well, better we them probably good identified And not we those local right and and into we've quarter-by-quarter out like feel we're we We've point. a their experienced that But this at quarter. model place with hotels way as all every properly, got the we extrapolate that feel participating there's getting low obviously a projection. -- we them with like assess -- business and like deferrals such time, charge-offs have we're to underlying forth. so very in over

pretty, of problem getting experience it's better good terms So so from that here. feel lot forth. shouldn't any like pandemic But. I I getting of assets actually think we really more it worse. be pretty feel depends kind the on outsized Obviously, in and for on

Paul Egge

note credit losses. CECL, and And for individual I our considered merits and in might evaluated provision that valuation allowance anything have under we that

Ray Vitulli

Yes.

Okan Akin

Yes.

better-than-expected I'll -- portfolio the originally of fact In seeing is hanging of also addition to portfolio and downgrades portfolio add set. the in that, a very this is that that's actually the And instances, on Okan, deceleration, we're pronounced that where a with significant in our deceleration upgrades. experiencing number high-risk our well, as

Brad Milsaps

final Great. And for Paul. question just

branch a benefited up appreciably? that might run write-down, rate? $XX go a that XX-related have $XX this that's may is you in Or or was XQ the there from think million FAS of quarter, decent or that pretty you to expenses would run so that anything so Excluding million cause maybe PPP rate? Or from else good

Paul Egge

little paying decent be the a million a more of you'll and things. some staff really into of run rate. where we'll of I hedge augmentation million, the put effort. noise a bit now give see think forgiveness quarter. for $XX.X was still pivot I might into is or $XX second just, in the There's handle half say, level take, is some effort, PPP to used the kind We'll our shoulder that

-- in the zone. think there's I but there, still you're singing out So nothing something

Steve Retzloff

sharing that accruals kind And profit bonus bring a things Yes. of nature like things as record record earnings well. of and

Operator

comes with Gailey Brady from Our next KBW. question

Brady Gailey

for So recently. accretable been small I has a fairly know you yield number guys

remain small last quarter, quarter? only immaterial fairly think was and $XXX,XXX. I it Did that about this

Paul Egge

quarter, immaterial economize really towards which getting our It's off, we weaning XXXX. might is every away it's why thought more we dropping. Yes, in here weaning quarter of first

Brady Gailey

quarter. XXXx the great buy looks then bought at stock And look around It you at Great. you see when back, the it's in active to tangible. you Okay. like all

If so it's now you it's now, at X.Xx to the tangible, X cheap. not X. look as stock

still you appetite on do stock good the So buyback to little have being a price higher? despite the a execute pretty

Paul Egge

of core #X Price when than share one but loan many repurchases, the is considerations ever, more use capital look excess that is we we're growth. into our so of evaluating

Secondary we drive volume-based And of of little dynamics the pricing to flexibility share to repurchases. potential a a activity. high of maintain for that that, bit there's around level M&A the appetite course, want then,

price, focused most moving more current parts. of accretive put work. for Not capital too So us on a ways lot executing share to but intimidated to by on much the that the

Brady Gailey

into Is smaller, this acquiring some Or consider on But Okay. downstream either just for an in Texas been lastly how big something you into it's think would transaction? we saw little the thought. more do I and fits fits And think landscape. It's quieter would which type a in was deal more targets? me BancorpSouth transformational of do backyard. how And M&A Cadence, you Allegiance Allegiance you M&A? have a then it then like guys is MOE than

Steve Retzloff

of uncertainties life-sized the transactions more Well, of transactions. probably it's to out the course, out smaller risk opens of there. think Coming -- of it's the appropriate good like to the see do And been a I profile the for pandemic, that a because of transaction larger uncertainties. inside it door kind though, the

You currency. have better

terms right assertive I'd profile M&A in or say posture. that So now an we're of actively

we think would smaller, board, here, probably acquisitions certainly across the would welcomed thinking around -- are yes, medium-sized. but still be We

probably side, the as We're can make our of working through I well community but on anybody know community in a with contacts. all we're think hard they also around organic the bankers and as touch stay that difference

Operator

Olney from Stephens. with comes question next Our Matt Instructions] [Operator

Matt Olney

PPP, curious kind of fee The how those of back to I'm as recognized ball still want be what that, on over million quarters. crystal March unamortized I $XX circle few XX. net says of next the will the about

Paul Egge

that are in play the but round way of potential first, for is that one go than Predicting going ultimately future relates We think process there's out. faster to things. we. as the is is going to stragglers to As recognize second it we the the the those forgiveness do

we purposes probably could think around it of year. own so is modeled that be XX% we've for feel way context. It being the the or that by in tentatively, to but higher, our for forgiven So us right the about it it's end

Matt Olney

other back loans. it's banks. a loan a curious, or on you larger bit small relative, little be traditional times put Allegiance, on Steve call would can commentary larger market in But numbers of of middle the larger to is I it business I mentioned few side? Okay. earlier, that a larger circling is guess, mean, And made then some terms some I'm strategy, that a more Any all behind you to that? just you -- wouldn't

Steve Retzloff

at raw we're that willing closely. exceed on size of larger don't lot to of that given there. million, A that's of capital small us bit really we're think the little number focused relationships and just side material And to loan look our asset right say take business I time there. very opportunity I'd I Gradually, footings, that. have a and to it's loan put is $XX look loan and just We over kind more more that million. the growth, use a the way one it $XX gives mean, few at that

Matt Olney

And that it new before? than to to are Or clarify on going team it individuals larger grow were to this? doing the that that, just looking producers at and existing existing is and you be new is it willing customers

Steve Retzloff

that And our of lenders has are team at to $XXX lending below existing capacity so staff portfolio. and the it can lot calculate in our you -- a look to build ways, kind got our you we've close of different average when current the loan million of norm, but Well, capacity. --

our grow or our have larger at continue want go of because they and continuing percent above XX-or-so tell other continuing they're normal on a -- portfolio though staff this to lot relationships. historic. lending them size, are of We their Their don't that to projects, when loan that customers at we places is But those and growth portfolios. do we

thing. to back kind they take them So that type go actually add opportunity or to customers another those loan can loan another of that back, just we're of giving an

so So or want to the market. just entire it -- book. It's that for smaller not lenders we believe be to it's certainly middle the it interpreted grow but still the that's to don't opportunity lending new much loans, that new as gives going staff

Operator

comes question John next from Janney. Our with Rodis

John Rodis

said remaining. the -- Paul, in maybe $XX but PPP was you first just this, I million What loans, guess, missed the quarter? I on

Paul Egge

if We recognized revenue approximately presentation, first Total investor in a you was me. yes, little quarter, pardon this higher the -- detailed $X.X a got That's $X.X yield include that's into million in but fourth interest. million. fee the income of PPP during We've fee income. net slide the on that

Operator

for remarks. like the I'm time, to And this I'd further showing questions. turn back call over Retzloff Steve no closing currently At to

Steve Retzloff

and Very again, much. to appreciate very time you thank you, interest And quarter, -- look your I thank good. next again forward to Well, the we speaking in and you bank. just we're everybody.

Operator

This you participating. conference for call. concludes today's Thank

disconnect. may You now

Allegiance Bancshares (ABTX) 1 May 212021 Q1 Earnings call transcript