Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the
holding company of Allegiance Bank (the "Bank"), today reported net
income of $9.9 million and diluted earnings per share of $0.48 for
the second quarter 2020 compared to net income of $14.2 million and
diluted earnings per share of $0.66 for the second quarter
2019. Net income for the six months ended June 30, 2020 was
$13.4 million, or $0.65 per diluted share, compared to $26.9
million, or $1.24 per diluted share, for the six months ended June
30, 2019. The second quarter and six months ended June 30,
2020 results were primarily driven by the increased provision for
loan losses in response to COVID-19-related uncertainties in the
current economic environment partially offset by increased net
interest income.
"We are pleased with our second quarter 2020 earnings
performance, especially in light of the impact of the coronavirus
on our economy," said Steve Retzloff, Allegiance’s Chief Executive
Officer. “Allegiance finished the quarter on a solid foundation of
record pre-tax, pre-provision earnings, strong capital ratios, and
a great liquidity position. We believe that we are well-positioned
in light of today’s economic uncertainties and remain a strong
resource for those we serve,” commented Retzloff.
“Our team of extraordinary bankers and small business lenders
worked tirelessly around the clock to deploy the SBA’s Paycheck
Protection Program ('PPP') to support our small business community.
I am incredibly proud of the Bank’s ability to deliver on our
commitment to help our customers - all while making many changes to
how and where we all work. Allegiance reinforces the unique and
valuable role a community bank offers to the businesses it serves
as our bankers helped our customers and new borrowers secure
funding for over 5,800 loans totaling over $695 million and will
continue to do more until the PPP program expires. In turn,
Allegiance collected a weighted average fee of 3.75% on the PPP
loans to be recognized over the life of the loans. Allegiance
was committed to supporting its customers from the start of the
process and will continue to be committed throughout the entire
forgiveness journey,” continued Retzloff.
“As community bankers, we have a responsibility to support the
health and welfare of our customers, communities and employees
throughout this unprecedented time. Allegiance donated $150,000 and
issued a $100,000 matching grant as well as committed volunteers to
support the Houston Food Bank that will help provide one million
meals across its Houston footprint. Small businesses are the
mainstay of our business in the Houston region and we have been
honored to serve their needs during this challenging economic
environment. We continue to work diligently to build shareholder
value by utilizing our strong capital position to support our
customers and the communities we serve with outstanding customer
service to keep Houston strong,” concluded Retzloff.
Second Quarter 2020 Results
Net interest income before the provision for loan losses in the
second quarter 2020 increased $5.3 million, or 11.6%, to $50.8
million from $45.6 million for the second quarter 2019 and
increased $5.8 million, or 12.9%, from $45.0 million in the first
quarter 2020. These increases were primarily due to changes
in the volume and relative mix of the underlying assets and
liabilities, the impact of PPP loans as well as lower costs on
interest-bearing liabilities. The net interest margin on a
tax equivalent basis decreased 23 basis points to 4.10% for the
second quarter 2020 from 4.33% for the second quarter 2019 and
decreased 5 basis points from 4.15% for the first quarter 2020.
Excluding the impact of acquisition accounting adjustments,
adjusted net interest margin on a tax equivalent basis was 4.05%
for the second quarter 2020 compared to 4.07% for the second
quarter 2019 and 4.04% for the first quarter 2020. Adjusted net
interest margin is a non-GAAP measure. Please refer to the non-GAAP
reconciliation on page 11.
Noninterest income for the second quarter 2020 was $1.6 million,
a decrease of $2.3 million, or 59.4%, compared to $3.8 million for
the second quarter 2019 and a decrease of $1.2 million, or 42.7%,
compared to $2.7 million for the first quarter 2020.
Noninterest income for the second quarter 2020, first quarter 2020
and second quarter 2019 included $93 thousand, $194 thousand and
$846 thousand, respectively, of gains on the sale of securities.
Second quarter 2020 noninterest income reflected lower
transactional fee income, significantly lower correspondent bank
rebates and included a loss on the sale of other real estate owned
of $306 thousand.
Noninterest expense for the second quarter 2020 decreased $301
thousand, or 1.0%, to $29.8 million from $30.1 million for the
second quarter 2019 and decreased $2.6 million, or 8.1%, compared
to the first quarter 2020. Noninterest expense for the first
quarter 2020 included $2.2 million of other real estate
write-downs.
In the second quarter 2020, Allegiance’s efficiency ratio was
56.92% compared to 68.13% for the first quarter 2020 and 61.93% for
the second quarter 2019. Second quarter 2020 annualized
returns on average assets, average equity and average tangible
equity were 0.71%, 5.51% and 8.32%, respectively, compared to
0.29%, 1.98% and 3.02%, respectively, for the first quarter
2020. Annualized returns on average assets, average equity
and average tangible equity for the second quarter 2019 were 1.19%,
8.10% and 12.52%, respectively. Return on average tangible equity
is a non-GAAP measure. Please refer to the non-GAAP reconciliation
on page 11.
Six Months Ended June 30, 2020 Results
Net interest income before provision for loan losses for the six
months ended June 30, 2020 increased $5.7 million, or 6.3%, to
$95.9 million from $90.2 million for the six months ended June 30,
2019 primarily due to a $481.4 million, or 11.4%, increase in
average interest-earning assets over the prior year, the impact of
PPP loans as well as lower costs related to interest-bearing
liabilities. The net interest margin on a tax equivalent basis
decreased 20 basis points to 4.12% for the six months ended June
30, 2020 from 4.32% for the six months ended June 30, 2019.
Excluding the impact of acquisition accounting adjustments, the
adjusted net interest margin for the six months ended June 30, 2020
was 4.04%, compared to 4.05% for the six months ended June 30,
2019. Adjusted net interest margin is a non-GAAP measure. Please
refer to the non-GAAP reconciliation on page 11.
Noninterest income for the six months ended June 30, 2020 was
$4.3 million, a decrease of $2.8 million, or 39.9%, compared to
$7.1 million for the six months ended June 30, 2019 due primarily
to significantly lower correspondent bank rebates and losses on the
sales of other real estate owned of $375 thousand. Additionally,
noninterest income for the first six months of 2020 and 2019
included $287 thousand and $846 thousand, respectively, of gains on
the sale of securities.
Noninterest expense for the six months ended June 30, 2020
increased $985 thousand, or 1.6%, to $62.2 million from $61.2
million for the six months ended June 30, 2019. The increase
in noninterest expense over the six months ended June 30, 2019 was
primarily due to $2.2 million of other real estate write-downs
during the first quarter of 2020 partially offset by the decrease
in merger-related expenses incurred during the first six months of
2019.
Allegiance’s efficiency ratio decreased from 63.44% for the six
months ended June 30, 2019 to 62.26% for the six months ended June
30, 2020. For the six months ended June 30, 2020, returns on
average assets, average equity and average tangible equity were
0.51%, 3.76% and 5.70%, respectively, compared to 1.14%, 7.69% and
11.87%, respectively, for the six months ended June 30, 2019.
Return on average tangible equity is a non-GAAP measure. Please
refer to the non-GAAP reconciliation on page 11.
Financial Condition
Total assets at June 30, 2020 increased $834.5 million, or
66.7% (annualized), to $5.84 billion compared to $5.00 billion at
March 31, 2020 and increased $1.04 billion, or 21.7%, compared
to $4.79 billion at June 30, 2019, primarily due to the
origination of PPP loans and growth in the securities
portfolio.
Total loans at June 30, 2020 increased $628.1 million, or
63.5% (annualized), to $4.58 billion compared to $3.96 billion at
March 31, 2020 and increased $725.7 million, or 18.8%,
compared to $3.86 billion at June 30, 2019, primarily due
to the origination of $695.8 million of PPP loans and organic loan
growth. Core loans, which exclude the mortgage warehouse portfolio
and PPP loans, decreased $66.6 million, or 6.7% (annualized), to
$3.89 billion at June 30, 2020 from $3.95 billion at
March 31, 2020 and increased $76.1 million, or 2.0%, from
$3.81 billion at June 30, 2019.
Deposits at June 30, 2020 increased $747.1 million, or
75.6% (annualized), to $4.70 billion compared to $3.95 billion at
March 31, 2020 and increased $840.1 million, or 21.8%,
compared to $3.86 billion at June 30, 2019.
Asset Quality
Nonperforming assets totaled $45.1 million, or 0.77% of total
assets, at June 30, 2020, compared to $34.2 million, or 0.68%
of total assets, at March 31, 2020, and $37.7 million, or
0.79% of total assets, at June 30, 2019. The allowance for
loan losses was 1.04% of total loans at June 30, 2020, 0.95%
of total loans at March 31, 2020 and 0.72% of total loans at
June 30, 2019. Accounting Standards Update (ASU) 2016-13,
“Financial Instruments – Credit Losses (Topic 326): Measurement of
Credit Losses on Financial Instruments” (CECL), became effective
for the Company on January 1, 2020. On March 27, 2020,
the CARES Act included an option for entities to delay the
implementation of CECL until the earlier of the termination date of
the national emergency declaration by the President or
December 31, 2020. Due to the uncertainty on the economy from
COVID-19, the Company chose to delay its implementation of CECL and
recorded its provision for loan losses under the incurred loss
model that existed prior to CECL.
The provision for loan losses for the second quarter 2020 was
$10.7 million, or 0.97% (annualized) of average loans, compared to
$11.0 million, or 1.12% (annualized) of average loans, for the
first quarter 2020 and $1.4 million, or 0.15% (annualized) of
average loans for the second quarter 2019 primarily due to economic
risks and uncertainties related to the COVID-19 pandemic. The
increase in the Company’s provision for loan losses in the second
quarter of 2020 compared to prior quarters reflects the uncertainty
surrounding unemployment, the economic impact caused by COVID-19
and the economic effects related to the sustained lower crude oil
prices.
Second quarter 2020 net charge-offs were $538 thousand, or 0.05%
(annualized) of average loans, a decrease from net charge-offs of
$2.9 million, or 0.30% (annualized) of average loans, for the first
quarter 2020 and $590 thousand, or 0.06% (annualized) of average
loans, for the second quarter 2019. Net charge-offs for the
six months ended June 30, 2020 were $3.5 million, or 0.17%
(annualized) of average loans, compared to net charge-offs for the
six months ended June 30, 2019 of $799 thousand, or 0.04%
(annualized) of average loans.
The Company believes the largest risks within its loan portfolio
are in the hotel, restaurant and bar and oil and gas portfolios.
Loan balances in the hotel industry, excluding PPP loans, totaled
$134.0 million, or 2.9% of total loans, at June 30, 2020, of
which $7.1 million were on nonaccrual. At June 30, 2020, restaurant
and bar industry loans, excluding PPP loans, totaled
$111.3 million, or 2.4%, of total loans, of which $695
thousand were on nonaccrual. At June 30, 2020, the Company’s
allowance for loan losses allocated to its hotel portfolio was 1.3%
of total hotel loans and its restaurant and bar portfolio was 1.3%
of total restaurant and bar loans. The oil and gas portfolio,
excluding PPP loans, totaled $74.7 million, or 1.6%, of total loans
at June 30, 2020, of which $788 thousand were on nonaccrual. At
June 30, 2020, the allowance for loan losses allocated to the
oil and gas loan portfolio was 2.1% of total oil and gas loans.
As of June 30, 2020, the Company executed 2,111 principal and
interest deferrals on outstanding loan balances of $1.19 billion
with associated accrued interest of $16.4 million to borrowers in
connection with the COVID-19 relief provided by the CARES Act.
Additionally, upon request and after meeting certain conditions,
borrowers could be granted a second payment deferral subsequent to
the first deferral. The Company processed second payment deferrals
for 129 loans with outstanding loan balances of $100.1 million and
associated accrued interest of $1.4 million through July 24, 2020.
These deferrals were generally no more than 90 days in
duration.
Dividend
On July 23, 2020, the Board of Directors of Allegiance declared
a cash dividend of $0.10 per share to be paid on September 15, 2020
to all shareholders of record as of August 31, 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 11 of this earnings release for a reconciliation
of these non-GAAP financial measures.
Conference Call
As previously announced, Allegiance’s management team will host
a conference call on Thursday, July 30, 2020 at 9:00 a.m. Central
Time (10:00 a.m. Eastern Time) to discuss its second quarter 2020
results. Individuals and investment professionals may participate
in the call by dialing (877) 279-2520. The conference ID number is
1791298. 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 June 30, 2020, Allegiance was a $5.84 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 June 30, 2020, 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 contains forward-looking statements within the
meaning of the securities laws that are derived utilizing
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 expected 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.
Additionally, the impact of the COVID-19 pandemic is rapidly
evolving and its future effects on Allegiance are difficult to
predict. These and various other risk factors are discussed in
Allegiance’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2019 and Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020 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. Because of these uncertainties,
readers should not place undue reliance on any forward-looking
statement. Allegiance disclaims any 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.
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
2020 |
|
|
2019 |
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
237,585 |
|
|
$ |
156,700 |
|
|
$ |
213,347 |
|
|
$ |
246,312 |
|
|
$ |
170,850 |
|
Interest-bearing deposits at
other financial institutions |
|
|
28,815 |
|
|
|
18,189 |
|
|
|
132,901 |
|
|
|
54,307 |
|
|
|
61,757 |
|
Total cash and cash equivalents |
|
|
266,400 |
|
|
|
174,889 |
|
|
|
346,248 |
|
|
|
300,619 |
|
|
|
232,607 |
|
Available for sale securities, at
fair value |
|
|
618,751 |
|
|
|
508,250 |
|
|
|
372,545 |
|
|
|
353,000 |
|
|
|
348,173 |
|
Loans held for investment |
|
|
4,583,656 |
|
|
|
3,955,546 |
|
|
|
3,915,310 |
|
|
|
3,886,004 |
|
|
|
3,857,963 |
|
Less: allowance for loan
losses |
|
|
(47,642 |
) |
|
|
(37,511 |
) |
|
|
(29,438 |
) |
|
|
(29,808 |
) |
|
|
(27,940 |
) |
Loans, net |
|
|
4,536,014 |
|
|
|
3,918,035 |
|
|
|
3,885,872 |
|
|
|
3,856,196 |
|
|
|
3,830,023 |
|
Accrued interest
receivable |
|
|
32,795 |
|
|
|
17,203 |
|
|
|
15,468 |
|
|
|
15,201 |
|
|
|
16,508 |
|
Premises and equipment,
net |
|
|
67,229 |
|
|
|
66,798 |
|
|
|
66,790 |
|
|
|
67,175 |
|
|
|
59,690 |
|
Other real estate owned |
|
|
11,847 |
|
|
|
12,617 |
|
|
|
8,337 |
|
|
|
8,333 |
|
|
|
6,294 |
|
Federal Home Loan Bank
stock |
|
|
14,844 |
|
|
|
12,798 |
|
|
|
6,242 |
|
|
|
14,138 |
|
|
|
8,866 |
|
Bank owned life insurance |
|
|
27,398 |
|
|
|
27,255 |
|
|
|
27,104 |
|
|
|
26,947 |
|
|
|
26,794 |
|
Goodwill |
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
Core deposit intangibles,
net |
|
|
19,896 |
|
|
|
20,886 |
|
|
|
21,876 |
|
|
|
23,053 |
|
|
|
24,231 |
|
Other assets |
|
|
18,065 |
|
|
|
20,056 |
|
|
|
18,530 |
|
|
|
17,536 |
|
|
|
17,383 |
|
Total assets |
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
$ |
4,905,840 |
|
|
$ |
4,794,211 |
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
1,754,128 |
|
|
$ |
1,217,532 |
|
|
$ |
1,252,232 |
|
|
$ |
1,227,839 |
|
|
$ |
1,173,423 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
375,353 |
|
|
|
341,524 |
|
|
|
367,278 |
|
|
|
340,754 |
|
|
|
390,067 |
|
Money market and savings |
|
|
1,270,437 |
|
|
|
1,110,631 |
|
|
|
1,258,008 |
|
|
|
1,114,233 |
|
|
|
995,467 |
|
Certificates and other time |
|
|
1,300,793 |
|
|
|
1,283,887 |
|
|
|
1,190,583 |
|
|
|
1,214,659 |
|
|
|
1,301,683 |
|
Total interest-bearing deposits |
|
|
2,946,583 |
|
|
|
2,736,042 |
|
|
|
2,815,869 |
|
|
|
2,669,646 |
|
|
|
2,687,217 |
|
Total deposits |
|
|
4,700,711 |
|
|
|
3,953,574 |
|
|
|
4,068,101 |
|
|
|
3,897,485 |
|
|
|
3,860,640 |
|
Accrued interest payable |
|
|
3,293 |
|
|
|
3,821 |
|
|
|
4,326 |
|
|
|
4,915 |
|
|
|
3,531 |
|
Borrowed funds |
|
|
255,509 |
|
|
|
190,506 |
|
|
|
75,503 |
|
|
|
159,501 |
|
|
|
146,998 |
|
Subordinated debt |
|
|
108,061 |
|
|
|
107,930 |
|
|
|
107,799 |
|
|
|
107,771 |
|
|
|
49,019 |
|
Other liabilities |
|
|
33,164 |
|
|
|
40,005 |
|
|
|
27,060 |
|
|
|
29,860 |
|
|
|
29,322 |
|
Total liabilities |
|
|
5,100,738 |
|
|
|
4,295,836 |
|
|
|
4,282,789 |
|
|
|
4,199,532 |
|
|
|
4,089,510 |
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,737 |
|
|
|
21,147 |
|
Capital surplus |
|
|
515,045 |
|
|
|
513,894 |
|
|
|
521,066 |
|
|
|
529,688 |
|
|
|
541,979 |
|
Retained earnings |
|
|
172,723 |
|
|
|
164,858 |
|
|
|
163,375 |
|
|
|
149,389 |
|
|
|
137,342 |
|
Accumulated other
comprehensive income |
|
|
27,944 |
|
|
|
7,486 |
|
|
|
4,900 |
|
|
|
6,494 |
|
|
|
4,233 |
|
Total shareholders’ equity |
|
|
736,143 |
|
|
|
706,593 |
|
|
|
709,865 |
|
|
|
706,308 |
|
|
|
704,701 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
$ |
4,905,840 |
|
|
$ |
4,794,211 |
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
Year-to-Date |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
June 30 |
|
|
June 30 |
|
|
|
|
|
|
|
(Dollars in thousands, except per share data) |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees |
|
$ |
56,421 |
|
|
$ |
54,624 |
|
|
$ |
55,368 |
|
|
$ |
55,790 |
|
|
$ |
56,016 |
|
|
$ |
111,045 |
|
|
$ |
110,205 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
1,842 |
|
|
|
2,087 |
|
|
|
2,066 |
|
|
|
2,090 |
|
|
|
1,837 |
|
|
|
3,929 |
|
|
|
2,819 |
|
Tax-exempt |
|
|
2,169 |
|
|
|
546 |
|
|
|
469 |
|
|
|
483 |
|
|
|
692 |
|
|
|
2,715 |
|
|
|
1,982 |
|
Deposits in other
financial institutions |
|
|
20 |
|
|
|
195 |
|
|
|
244 |
|
|
|
302 |
|
|
|
401 |
|
|
|
215 |
|
|
|
1,089 |
|
Total interest income |
|
|
60,452 |
|
|
|
57,452 |
|
|
|
58,147 |
|
|
|
58,665 |
|
|
|
58,946 |
|
|
|
117,904 |
|
|
|
116,095 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, money market
and savings deposits |
|
|
1,729 |
|
|
|
4,364 |
|
|
|
5,091 |
|
|
|
4,975 |
|
|
|
4,513 |
|
|
|
6,093 |
|
|
|
8,241 |
|
Certificates and other
time deposits |
|
|
5,845 |
|
|
|
6,084 |
|
|
|
6,483 |
|
|
|
6,909 |
|
|
|
7,008 |
|
|
|
11,929 |
|
|
|
13,264 |
|
Borrowed funds |
|
|
562 |
|
|
|
506 |
|
|
|
547 |
|
|
|
1,183 |
|
|
|
1,118 |
|
|
|
1,068 |
|
|
|
2,945 |
|
Subordinated debt |
|
|
1,469 |
|
|
|
1,473 |
|
|
|
1,500 |
|
|
|
761 |
|
|
|
736 |
|
|
|
2,942 |
|
|
|
1,471 |
|
Total interest expense |
|
|
9,605 |
|
|
|
12,427 |
|
|
|
13,621 |
|
|
|
13,828 |
|
|
|
13,375 |
|
|
|
22,032 |
|
|
|
25,921 |
|
NET INTEREST INCOME |
|
|
50,847 |
|
|
|
45,025 |
|
|
|
44,526 |
|
|
|
44,837 |
|
|
|
45,571 |
|
|
|
95,872 |
|
|
|
90,174 |
|
Provision for loan losses |
|
|
10,669 |
|
|
|
10,990 |
|
|
|
933 |
|
|
|
2,597 |
|
|
|
1,407 |
|
|
|
21,659 |
|
|
|
2,409 |
|
Net interest income after
provision for loan losses |
|
|
40,178 |
|
|
|
34,035 |
|
|
|
43,593 |
|
|
|
42,240 |
|
|
|
44,164 |
|
|
|
74,213 |
|
|
|
87,765 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds
fees |
|
|
60 |
|
|
|
169 |
|
|
|
189 |
|
|
|
168 |
|
|
|
139 |
|
|
|
229 |
|
|
|
301 |
|
Service charges on
deposit accounts |
|
|
343 |
|
|
|
457 |
|
|
|
403 |
|
|
|
379 |
|
|
|
365 |
|
|
|
800 |
|
|
|
690 |
|
Gain on sale of
securities |
|
|
93 |
|
|
|
194 |
|
|
|
613 |
|
|
|
— |
|
|
|
846 |
|
|
|
287 |
|
|
|
846 |
|
(Loss) gain on sales of
other real estate and repossessed assets |
|
|
(306 |
) |
|
|
(69 |
) |
|
|
(45 |
) |
|
|
— |
|
|
|
70 |
|
|
|
(375 |
) |
|
|
71 |
|
Bank owned life
insurance |
|
|
143 |
|
|
|
151 |
|
|
|
157 |
|
|
|
153 |
|
|
|
155 |
|
|
|
294 |
|
|
|
314 |
|
Rebate from
correspondent bank |
|
|
89 |
|
|
|
493 |
|
|
|
900 |
|
|
|
900 |
|
|
|
884 |
|
|
|
582 |
|
|
|
1,780 |
|
Other |
|
|
1,140 |
|
|
|
1,330 |
|
|
|
1,183 |
|
|
|
1,289 |
|
|
|
1,386 |
|
|
|
2,470 |
|
|
|
3,132 |
|
Total noninterest income |
|
|
1,562 |
|
|
|
2,725 |
|
|
|
3,400 |
|
|
|
2,889 |
|
|
|
3,845 |
|
|
|
4,287 |
|
|
|
7,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits |
|
|
19,334 |
|
|
|
19,781 |
|
|
|
18,273 |
|
|
|
20,221 |
|
|
|
19,415 |
|
|
|
39,115 |
|
|
|
39,099 |
|
Net occupancy and
equipment |
|
|
1,926 |
|
|
|
1,907 |
|
|
|
1,994 |
|
|
|
1,973 |
|
|
|
2,114 |
|
|
|
3,833 |
|
|
|
4,166 |
|
Depreciation |
|
|
885 |
|
|
|
866 |
|
|
|
861 |
|
|
|
822 |
|
|
|
756 |
|
|
|
1,751 |
|
|
|
1,509 |
|
Data processing and
software amortization |
|
|
1,934 |
|
|
|
1,826 |
|
|
|
2,120 |
|
|
|
2,058 |
|
|
|
1,709 |
|
|
|
3,760 |
|
|
|
3,332 |
|
Professional fees |
|
|
800 |
|
|
|
573 |
|
|
|
540 |
|
|
|
667 |
|
|
|
527 |
|
|
|
1,373 |
|
|
|
1,126 |
|
Regulatory assessments
and FDIC insurance |
|
|
609 |
|
|
|
632 |
|
|
|
216 |
|
|
|
(41 |
) |
|
|
802 |
|
|
|
1,241 |
|
|
|
1,530 |
|
Core deposit
intangibles amortization |
|
|
990 |
|
|
|
990 |
|
|
|
1,177 |
|
|
|
1,178 |
|
|
|
1,178 |
|
|
|
1,980 |
|
|
|
2,356 |
|
Communications |
|
|
390 |
|
|
|
417 |
|
|
|
486 |
|
|
|
455 |
|
|
|
468 |
|
|
|
807 |
|
|
|
898 |
|
Advertising |
|
|
370 |
|
|
|
521 |
|
|
|
597 |
|
|
|
449 |
|
|
|
617 |
|
|
|
891 |
|
|
|
1,321 |
|
Acquisition and
merger-related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
153 |
|
|
|
— |
|
|
|
1,326 |
|
Other |
|
|
2,541 |
|
|
|
4,888 |
|
|
|
3,167 |
|
|
|
2,227 |
|
|
|
2,341 |
|
|
|
7,429 |
|
|
|
4,532 |
|
Total noninterest expense |
|
|
29,779 |
|
|
|
32,401 |
|
|
|
29,431 |
|
|
|
30,009 |
|
|
|
30,080 |
|
|
|
62,180 |
|
|
|
61,195 |
|
INCOME BEFORE INCOME
TAXES |
|
|
11,961 |
|
|
|
4,359 |
|
|
|
17,562 |
|
|
|
15,120 |
|
|
|
17,929 |
|
|
|
16,320 |
|
|
|
33,704 |
|
Provision for income
taxes |
|
|
2,054 |
|
|
|
843 |
|
|
|
3,576 |
|
|
|
3,073 |
|
|
|
3,681 |
|
|
|
2,897 |
|
|
|
6,778 |
|
NET INCOME |
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
12,047 |
|
|
$ |
14,248 |
|
|
$ |
13,423 |
|
|
$ |
26,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.68 |
|
|
$ |
0.57 |
|
|
$ |
0.67 |
|
|
$ |
0.66 |
|
|
$ |
1.25 |
|
Diluted |
|
$ |
0.48 |
|
|
$ |
0.17 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
$ |
0.66 |
|
|
$ |
0.65 |
|
|
$ |
1.24 |
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
Year-to-Date |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
June 30 |
|
|
June 30 |
|
|
|
|
|
|
|
(Dollars and share amounts in thousands, except per share
data) |
|
Net income |
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
12,047 |
|
|
$ |
14,248 |
|
|
$ |
13,423 |
|
|
$ |
26,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.68 |
|
|
$ |
0.57 |
|
|
$ |
0.67 |
|
|
$ |
0.66 |
|
|
$ |
1.25 |
|
Earnings per share,
diluted |
|
$ |
0.48 |
|
|
$ |
0.17 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
$ |
0.66 |
|
|
$ |
0.65 |
|
|
$ |
1.24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(A) |
|
|
0.71 |
% |
|
|
0.29 |
% |
|
|
1.13 |
% |
|
|
0.98 |
% |
|
|
1.19 |
% |
|
|
0.51 |
% |
|
|
1.14 |
% |
Return on average
equity(A) |
|
|
5.51 |
% |
|
|
1.98 |
% |
|
|
7.81 |
% |
|
|
6.73 |
% |
|
|
8.10 |
% |
|
|
3.76 |
% |
|
|
7.69 |
% |
Return on average
tangible equity(A)(B) |
|
|
8.32 |
% |
|
|
3.02 |
% |
|
|
11.96 |
% |
|
|
10.33 |
% |
|
|
12.52 |
% |
|
|
5.70 |
% |
|
|
11.87 |
% |
Net interest margin (tax
equivalent)(C) |
|
|
4.10 |
% |
|
|
4.15 |
% |
|
|
4.11 |
% |
|
|
4.16 |
% |
|
|
4.33 |
% |
|
|
4.12 |
% |
|
|
4.32 |
% |
Adjusted net interest
margin (tax equivalent)(B) |
|
|
4.05 |
% |
|
|
4.04 |
% |
|
|
3.94 |
% |
|
|
3.97 |
% |
|
|
4.07 |
% |
|
|
4.04 |
% |
|
|
4.05 |
% |
Efficiency ratio(D) |
|
|
56.92 |
% |
|
|
68.13 |
% |
|
|
62.20 |
% |
|
|
62.88 |
% |
|
|
61.93 |
% |
|
|
62.26 |
% |
|
|
63.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares,
Inc. (Consolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
|
12.61 |
% |
|
|
14.12 |
% |
|
|
14.22 |
% |
|
|
14.40 |
% |
|
|
14.70 |
% |
|
|
12.61 |
% |
|
|
14.70 |
% |
Tangible equity to
tangible assets(B) |
|
|
8.81 |
% |
|
|
9.71 |
% |
|
|
9.78 |
% |
|
|
9.86 |
% |
|
|
10.05 |
% |
|
|
8.81 |
% |
|
|
10.05 |
% |
Estimated common
equity tier 1 capital |
|
|
11.36 |
% |
|
|
11.15 |
% |
|
|
11.42 |
% |
|
|
11.28 |
% |
|
|
11.34 |
% |
|
|
11.36 |
% |
|
|
11.34 |
% |
Estimated tier 1
risk-based capital |
|
|
11.60 |
% |
|
|
11.38 |
% |
|
|
11.66 |
% |
|
|
11.51 |
% |
|
|
11.58 |
% |
|
|
11.60 |
% |
|
|
11.58 |
% |
Estimated total
risk-based capital |
|
|
15.17 |
% |
|
|
14.72 |
% |
|
|
14.83 |
% |
|
|
14.70 |
% |
|
|
13.27 |
% |
|
|
15.17 |
% |
|
|
13.27 |
% |
Estimated tier 1
leverage capital |
|
|
8.83 |
% |
|
|
9.89 |
% |
|
|
10.02 |
% |
|
|
10.06 |
% |
|
|
10.17 |
% |
|
|
8.83 |
% |
|
|
10.17 |
% |
Allegiance Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated common
equity tier 1 capital |
|
|
12.84 |
% |
|
|
12.58 |
% |
|
|
12.67 |
% |
|
|
12.28 |
% |
|
|
12.02 |
% |
|
|
12.84 |
% |
|
|
12.02 |
% |
Estimated tier 1
risk-based capital |
|
|
12.84 |
% |
|
|
12.58 |
% |
|
|
12.67 |
% |
|
|
12.28 |
% |
|
|
12.02 |
% |
|
|
12.84 |
% |
|
|
12.02 |
% |
Estimated total
risk-based capital |
|
|
14.97 |
% |
|
|
14.48 |
% |
|
|
14.39 |
% |
|
|
14.01 |
% |
|
|
13.71 |
% |
|
|
14.97 |
% |
|
|
13.71 |
% |
Estimated tier 1
leverage capital |
|
|
9.77 |
% |
|
|
10.94 |
% |
|
|
10.89 |
% |
|
|
10.73 |
% |
|
|
10.57 |
% |
|
|
9.77 |
% |
|
|
10.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,414 |
|
|
|
20,411 |
|
|
|
20,652 |
|
|
|
20,981 |
|
|
|
21,257 |
|
|
|
20,413 |
|
|
|
21,494 |
|
Diluted |
|
|
20,514 |
|
|
|
20,690 |
|
|
|
20,930 |
|
|
|
21,256 |
|
|
|
21,546 |
|
|
|
20,572 |
|
|
|
21,780 |
|
Period end shares
outstanding |
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,737 |
|
|
|
21,147 |
|
|
|
20,431 |
|
|
|
21,147 |
|
Book value per share |
|
$ |
36.03 |
|
|
$ |
34.71 |
|
|
$ |
34.59 |
|
|
$ |
34.06 |
|
|
$ |
33.32 |
|
|
$ |
36.03 |
|
|
$ |
33.32 |
|
Tangible book value per
share(B) |
|
$ |
24.11 |
|
|
$ |
22.70 |
|
|
$ |
22.62 |
|
|
$ |
22.16 |
|
|
$ |
21.60 |
|
|
$ |
24.11 |
|
|
$ |
21.60 |
|
(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 11 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.
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
|
June 30,
2020 |
|
|
March 31,
2020 |
|
|
June 30, 2019 |
|
|
|
AverageBalance |
|
|
InterestEarned/InterestPaid |
|
|
AverageYield/Rate |
|
|
AverageBalance |
|
|
InterestEarned/InterestPaid |
|
|
AverageYield/Rate |
|
|
AverageBalance |
|
|
InterestEarned/InterestPaid |
|
|
AverageYield/Rate |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
4,425,036 |
|
|
$ |
56,421 |
|
|
|
5.13 |
% |
|
$ |
3,933,291 |
|
|
$ |
54,624 |
|
|
|
5.59 |
% |
|
$ |
3,819,687 |
|
|
$ |
56,016 |
|
|
|
5.88 |
% |
Securities |
|
|
594,205 |
|
|
|
4,011 |
|
|
|
2.71 |
% |
|
|
388,721 |
|
|
|
2,633 |
|
|
|
2.72 |
% |
|
|
350,004 |
|
|
|
2,529 |
|
|
|
2.90 |
% |
Deposits in other financial
institutions and other |
|
|
18,173 |
|
|
|
20 |
|
|
|
0.44 |
% |
|
|
50,711 |
|
|
|
195 |
|
|
|
1.55 |
% |
|
|
63,962 |
|
|
|
401 |
|
|
|
2.52 |
% |
Total interest-earning assets |
|
|
5,037,414 |
|
|
$ |
60,452 |
|
|
|
4.83 |
% |
|
|
4,372,723 |
|
|
$ |
57,452 |
|
|
|
5.28 |
% |
|
|
4,233,653 |
|
|
$ |
58,946 |
|
|
|
5.58 |
% |
Allowance for loan losses |
|
|
(41,334 |
) |
|
|
|
|
|
|
|
|
|
|
(28,718 |
) |
|
|
|
|
|
|
|
|
|
|
(27,125 |
) |
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
637,608 |
|
|
|
|
|
|
|
|
|
|
|
602,778 |
|
|
|
|
|
|
|
|
|
|
|
586,435 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,633,688 |
|
|
|
|
|
|
|
|
|
|
$ |
4,946,783 |
|
|
|
|
|
|
|
|
|
|
$ |
4,792,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
353,252 |
|
|
$ |
421 |
|
|
|
0.48 |
% |
|
$ |
363,326 |
|
|
$ |
846 |
|
|
|
0.94 |
% |
|
$ |
350,147 |
|
|
$ |
1,152 |
|
|
|
1.32 |
% |
Money market and savings
deposits |
|
|
1,169,225 |
|
|
|
1,308 |
|
|
|
0.45 |
% |
|
|
1,168,541 |
|
|
|
3,518 |
|
|
|
1.21 |
% |
|
|
994,557 |
|
|
|
3,361 |
|
|
|
1.36 |
% |
Certificates and other time
deposits |
|
|
1,302,743 |
|
|
|
5,845 |
|
|
|
1.80 |
% |
|
|
1,193,427 |
|
|
|
6,084 |
|
|
|
2.05 |
% |
|
|
1,331,955 |
|
|
|
7,008 |
|
|
|
2.11 |
% |
Borrowed funds |
|
|
320,332 |
|
|
|
562 |
|
|
|
0.71 |
% |
|
|
140,999 |
|
|
|
506 |
|
|
|
1.44 |
% |
|
|
155,969 |
|
|
|
1,118 |
|
|
|
2.87 |
% |
Subordinated debt |
|
|
107,998 |
|
|
|
1,469 |
|
|
|
5.47 |
% |
|
|
107,865 |
|
|
|
1,473 |
|
|
|
5.49 |
% |
|
|
48,986 |
|
|
|
736 |
|
|
|
6.03 |
% |
Total
interest-bearing liabilities |
|
|
3,253,550 |
|
|
$ |
9,605 |
|
|
|
1.19 |
% |
|
|
2,974,158 |
|
|
$ |
12,427 |
|
|
|
1.68 |
% |
|
|
2,881,614 |
|
|
$ |
13,375 |
|
|
|
1.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
1,624,641 |
|
|
|
|
|
|
|
|
|
|
|
1,225,888 |
|
|
|
|
|
|
|
|
|
|
|
1,173,662 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
32,393 |
|
|
|
|
|
|
|
|
|
|
|
33,202 |
|
|
|
|
|
|
|
|
|
|
|
32,525 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
4,910,584 |
|
|
|
|
|
|
|
|
|
|
|
4,233,248 |
|
|
|
|
|
|
|
|
|
|
|
4,087,801 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
723,104 |
|
|
|
|
|
|
|
|
|
|
|
713,535 |
|
|
|
|
|
|
|
|
|
|
|
705,162 |
|
|
|
|
|
|
|
|
|
Total liabilities
and shareholders' equity |
|
$ |
5,633,688 |
|
|
|
|
|
|
|
|
|
|
$ |
4,946,783 |
|
|
|
|
|
|
|
|
|
|
$ |
4,792,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.64 |
% |
|
|
|
|
|
|
|
|
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
|
|
|
$ |
50,847 |
|
|
|
4.06 |
% |
|
|
|
|
|
$ |
45,025 |
|
|
|
4.14 |
% |
|
|
|
|
|
$ |
45,571 |
|
|
|
4.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
|
|
|
$ |
51,342 |
|
|
|
4.10 |
% |
|
|
|
|
|
$ |
45,152 |
|
|
|
4.15 |
% |
|
|
|
|
|
$ |
45,684 |
|
|
|
4.33 |
% |
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Six Months Ended
June 30, |
|
|
|
2020 |
|
|
2019 |
|
|
|
AverageBalance |
|
|
InterestEarned/InterestPaid |
|
|
AverageYield/ Rate |
|
|
AverageBalance |
|
|
InterestEarned/InterestPaid |
|
|
AverageYield/ Rate |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Earning Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
4,179,164 |
|
|
$ |
111,045 |
|
|
|
5.34 |
% |
|
$ |
3,783,662 |
|
|
$ |
110,205 |
|
|
|
5.87 |
% |
Securities |
|
|
491,463 |
|
|
|
6,644 |
|
|
|
2.72 |
% |
|
|
348,354 |
|
|
|
4,801 |
|
|
|
2.78 |
% |
Deposits in other financial
institutions |
|
|
34,442 |
|
|
|
215 |
|
|
|
1.26 |
% |
|
|
91,628 |
|
|
|
1,089 |
|
|
|
2.40 |
% |
Total interest-earning assets |
|
|
4,705,069 |
|
|
$ |
117,904 |
|
|
|
5.04 |
% |
|
|
4,223,644 |
|
|
$ |
116,095 |
|
|
|
5.54 |
% |
Allowance for loan losses |
|
|
(35,026 |
) |
|
|
|
|
|
|
|
|
|
|
(26,944 |
) |
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
619,315 |
|
|
|
|
|
|
|
|
|
|
|
572,748 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,289,358 |
|
|
|
|
|
|
|
|
|
|
$ |
4,769,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
358,289 |
|
|
$ |
1,267 |
|
|
|
0.71 |
% |
|
$ |
344,203 |
|
|
$ |
2,115 |
|
|
|
1.24 |
% |
Money market and savings
deposits |
|
|
1,168,883 |
|
|
|
4,826 |
|
|
|
0.83 |
% |
|
|
937,664 |
|
|
|
6,126 |
|
|
|
1.32 |
% |
Certificates and other time
deposits |
|
|
1,248,085 |
|
|
|
11,929 |
|
|
|
1.92 |
% |
|
|
1,317,536 |
|
|
|
13,264 |
|
|
|
2.03 |
% |
Borrowed funds |
|
|
230,666 |
|
|
|
1,068 |
|
|
|
0.93 |
% |
|
|
219,415 |
|
|
|
2,945 |
|
|
|
2.71 |
% |
Subordinated debt |
|
|
107,931 |
|
|
|
2,942 |
|
|
|
5.48 |
% |
|
|
48,956 |
|
|
|
1,471 |
|
|
|
6.06 |
% |
Total interest-bearing liabilities |
|
|
3,113,854 |
|
|
$ |
22,032 |
|
|
|
1.42 |
% |
|
|
2,867,774 |
|
|
$ |
25,921 |
|
|
|
1.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
1,425,265 |
|
|
|
|
|
|
|
|
|
|
|
1,170,435 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
31,919 |
|
|
|
|
|
|
|
|
|
|
|
24,832 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
4,571,038 |
|
|
|
|
|
|
|
|
|
|
|
4,063,041 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
718,320 |
|
|
|
|
|
|
|
|
|
|
|
706,407 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
5,289,358 |
|
|
|
|
|
|
|
|
|
|
$ |
4,769,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
3.72 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
|
|
|
$ |
95,872 |
|
|
|
4.10 |
% |
|
|
|
|
|
$ |
90,174 |
|
|
|
4.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
|
|
|
$ |
96,493 |
|
|
|
4.12 |
% |
|
|
|
|
|
$ |
90,489 |
|
|
|
4.32 |
% |
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
|
2020 |
|
|
2019 |
|
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
Period-end Loan
Portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
651,430 |
|
|
$ |
702,267 |
|
|
$ |
689,360 |
|
|
$ |
675,055 |
|
|
$ |
694,516 |
|
Mortgage warehouse |
|
|
— |
|
|
|
1,051 |
|
|
|
8,304 |
|
|
|
36,594 |
|
|
|
46,171 |
|
Paycheck Protection Program
(PPP) |
|
|
695,772 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
(including multi-family residential) |
|
|
1,956,116 |
|
|
|
1,951,080 |
|
|
|
1,873,782 |
|
|
|
1,859,721 |
|
|
|
1,830,764 |
|
Commercial real estate
construction and land development |
|
|
386,865 |
|
|
|
378,987 |
|
|
|
410,471 |
|
|
|
386,723 |
|
|
|
368,108 |
|
1-4 family residential
(including home equity) |
|
|
703,513 |
|
|
|
704,212 |
|
|
|
698,957 |
|
|
|
695,520 |
|
|
|
690,961 |
|
Residential
construction |
|
|
171,656 |
|
|
|
177,025 |
|
|
|
192,515 |
|
|
|
189,608 |
|
|
|
183,991 |
|
Consumer and other |
|
|
18,304 |
|
|
|
40,924 |
|
|
|
41,921 |
|
|
|
42,783 |
|
|
|
43,452 |
|
Total loans |
|
$ |
4,583,656 |
|
|
$ |
3,955,546 |
|
|
$ |
3,915,310 |
|
|
$ |
3,886,004 |
|
|
$ |
3,857,963 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
33,223 |
|
|
$ |
21,621 |
|
|
$ |
28,371 |
|
|
$ |
34,615 |
|
|
$ |
31,382 |
|
Accruing loans 90 or more days
past due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
|
33,223 |
|
|
|
21,621 |
|
|
|
28,371 |
|
|
|
34,615 |
|
|
|
31,382 |
|
Other real estate |
|
|
11,847 |
|
|
|
12,617 |
|
|
|
8,337 |
|
|
|
8,333 |
|
|
|
6,294 |
|
Other repossessed assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
|
$ |
45,070 |
|
|
$ |
34,238 |
|
|
$ |
36,708 |
|
|
$ |
42,948 |
|
|
$ |
37,676 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
$ |
538 |
|
|
$ |
2,917 |
|
|
$ |
1,303 |
|
|
$ |
729 |
|
|
$ |
590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
12,578 |
|
|
$ |
8,669 |
|
|
$ |
8,388 |
|
|
$ |
8,033 |
|
|
$ |
9,386 |
|
Mortgage warehouse |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate
(including multi-family residential) |
|
|
16,127 |
|
|
|
7,024 |
|
|
|
6,741 |
|
|
|
15,356 |
|
|
|
18,218 |
|
Commercial real estate
construction and land development |
|
|
53 |
|
|
|
1,958 |
|
|
|
9,050 |
|
|
|
9,050 |
|
|
|
1,541 |
|
1-4 family residential
(including home equity) |
|
|
3,434 |
|
|
|
2,845 |
|
|
|
3,294 |
|
|
|
1,992 |
|
|
|
2,074 |
|
Residential
construction |
|
|
898 |
|
|
|
982 |
|
|
|
746 |
|
|
|
— |
|
|
|
— |
|
Consumer and other |
|
|
133 |
|
|
|
143 |
|
|
|
152 |
|
|
|
184 |
|
|
|
163 |
|
Total nonaccrual loans |
|
$ |
33,223 |
|
|
$ |
21,621 |
|
|
$ |
28,371 |
|
|
$ |
34,615 |
|
|
$ |
31,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets |
|
|
0.77 |
% |
|
|
0.68 |
% |
|
|
0.74 |
% |
|
|
0.88 |
% |
|
|
0.79 |
% |
Nonperforming loans to total
loans |
|
|
0.72 |
% |
|
|
0.55 |
% |
|
|
0.72 |
% |
|
|
0.89 |
% |
|
|
0.81 |
% |
Allowance for loan losses to
nonperforming loans |
|
|
143.40 |
% |
|
|
173.49 |
% |
|
|
103.76 |
% |
|
|
86.11 |
% |
|
|
89.03 |
% |
Allowance for loan losses to
total loans |
|
|
1.04 |
% |
|
|
0.95 |
% |
|
|
0.75 |
% |
|
|
0.77 |
% |
|
|
0.72 |
% |
Net charge-offs to average
loans (annualized) |
|
|
0.05 |
% |
|
|
0.30 |
% |
|
|
0.13 |
% |
|
|
0.07 |
% |
|
|
0.06 |
% |
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 adjusted 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 |
|
|
Year-to-Date |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
June 30 |
|
|
June 30 |
|
|
|
|
|
(Dollars and share amounts in thousands, except per share
data) |
|
Total shareholders'
equity |
$ |
736,143 |
|
|
$ |
706,593 |
|
|
$ |
709,865 |
|
|
$ |
706,308 |
|
|
$ |
704,701 |
|
|
$ |
736,143 |
|
|
$ |
704,701 |
|
Less: Goodwill and
core deposit intangibles, net |
|
243,538 |
|
|
|
244,528 |
|
|
|
245,518 |
|
|
|
246,695 |
|
|
|
247,873 |
|
|
|
243,538 |
|
|
|
247,873 |
|
Tangible
shareholders’
equity |
$ |
492,605 |
|
|
$ |
462,065 |
|
|
$ |
464,347 |
|
|
$ |
459,613 |
|
|
$ |
456,828 |
|
|
$ |
492,605 |
|
|
$ |
456,828 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end
of period |
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,737 |
|
|
|
21,147 |
|
|
|
20,431 |
|
|
|
21,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share |
$ |
24.11 |
|
|
$ |
22.70 |
|
|
$ |
22.62 |
|
|
$ |
22.16 |
|
|
$ |
21.60 |
|
|
$ |
24.11 |
|
|
$ |
21.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
12,047 |
|
|
$ |
14,248 |
|
|
$ |
13,423 |
|
|
$ |
26,926 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
723,104 |
|
|
$ |
713,535 |
|
|
$ |
710,155 |
|
|
$ |
710,044 |
|
|
$ |
705,162 |
|
|
$ |
718,320 |
|
|
$ |
706,407 |
|
Less: Average goodwill
and core deposit intangibles, net |
|
244,010 |
|
|
|
245,007 |
|
|
|
246,154 |
|
|
|
247,404 |
|
|
|
248,621 |
|
|
|
244,508 |
|
|
|
248,947 |
|
Average tangible
shareholders’ equity |
$ |
479,094 |
|
|
$ |
468,528 |
|
|
$ |
464,001 |
|
|
$ |
462,640 |
|
|
$ |
456,541 |
|
|
$ |
473,812 |
|
|
$ |
457,460 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average tangible equity |
|
8.32 |
% |
|
|
3.02 |
% |
|
|
11.96 |
% |
|
|
10.33 |
% |
|
|
12.52 |
% |
|
|
5.70 |
% |
|
|
11.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
$ |
4,905,840 |
|
|
$ |
4,794,211 |
|
|
$ |
5,836,881 |
|
|
$ |
4,794,211 |
|
Less: Goodwill and core
deposit intangibles, net |
|
243,538 |
|
|
|
244,528 |
|
|
|
245,518 |
|
|
|
246,695 |
|
|
|
247,873 |
|
|
|
243,538 |
|
|
|
247,873 |
|
Tangible
assets |
$ |
5,593,343 |
|
|
$ |
4,757,901 |
|
|
$ |
4,747,136 |
|
|
$ |
4,659,145 |
|
|
$ |
4,546,338 |
|
|
$ |
5,593,343 |
|
|
$ |
4,546,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets |
|
8.81 |
% |
|
|
9.71 |
% |
|
|
9.78 |
% |
|
|
9.86 |
% |
|
|
10.05 |
% |
|
|
8.81 |
% |
|
|
10.05 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent) |
$ |
51,342 |
|
|
$ |
45,152 |
|
|
$ |
44,623 |
|
|
$ |
44,924 |
|
|
$ |
45,684 |
|
|
$ |
96,493 |
|
|
$ |
90,489 |
|
Less: Acquisition
accounting adjustments |
|
(669 |
) |
|
|
(1,259 |
) |
|
|
(1,860 |
) |
|
|
(2,045 |
) |
|
|
(2,755 |
) |
|
|
(1,928 |
) |
|
|
(5,720 |
) |
Adjusted net
interest income (tax
equivalent) |
$ |
50,673 |
|
|
$ |
43,893 |
|
|
$ |
42,763 |
|
|
$ |
42,879 |
|
|
$ |
42,929 |
|
|
$ |
94,565 |
|
|
$ |
84,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
5,037,414 |
|
|
$ |
4,372,723 |
|
|
$ |
4,308,028 |
|
|
$ |
4,284,667 |
|
|
$ |
4,233,653 |
|
|
$ |
4,705,069 |
|
|
$ |
4,223,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (tax equivalent) |
|
4.10 |
% |
|
|
4.15 |
% |
|
|
4.11 |
% |
|
|
4.16 |
% |
|
|
4.33 |
% |
|
|
4.12 |
% |
|
|
4.32 |
% |
Adjusted net interest
margin (tax equivalent) |
|
4.05 |
% |
|
|
4.04 |
% |
|
|
3.94 |
% |
|
|
3.97 |
% |
|
|
4.07 |
% |
|
|
4.04 |
% |
|
|
4.05 |
% |
Allegiance Bancshares, Inc.8847 West Sam
Houston Parkway N., Suite 200Houston, Texas
77040ir@allegiancebank.com
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