Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the
holding company of Allegiance Bank (the "Bank"), today reported net
income of $15.9 million and diluted earnings per share of $0.77 for
the fourth quarter 2020 compared to net income of $14.0 million and
diluted earnings per share of $0.67 for the fourth quarter 2019.
Net income for the year ended December 31, 2020 was $45.5 million,
or $2.22 per diluted share, compared to $53.0 million, or $2.47 per
diluted share, for the year ended December 31, 2019.
The year ended December 31, 2020 results were primarily impacted by
the increased provision for credit losses in response to
COVID-19-related uncertainties in the current economic environment
partially offset by increased net interest income.
“We are pleased to report solid quarter and full-year earnings
during a very challenging economic environment which has further
evidenced the resiliency of our business model,” said Steve
Retzloff, Allegiance’s Chief Executive Officer. “Our results
reflect several meaningful accomplishments achieved by our team,”
continued Retzloff.
“We are extremely proud of the continued hard work and
dedication of our Allegiance bankers as our team helped a
tremendous number of customers enabling us to post impressive 2020
PPP results for an institution of our size and we expect continued
success with the 2021 PPP. As further validation of our outstanding
service culture and performance, we received recognition as a Top
Workplace in Houston by the Houston Chronicle and this year ranked
number six in the large company category with 500 plus employees.
We are one of only three companies that has been recognized as a
Top Workplace for eleven consecutive years,” commented
Retzloff.
“We are also pleased to announce an increase in our quarterly
dividend, reflecting our continued commitment to enhancing
shareholder value. As Houston’s largest locally-headquartered
community bank, we expect to build on our strong core fundamentals.
We are excited about the future and look forward to the year ahead
where we will embrace the opportunity to remain focused on our
customers and the communities we serve,” concluded Retzloff.
Fourth Quarter 2020 Results
Net interest income before the provision for credit losses in
the fourth quarter 2020 increased $10.4 million, or 23.3%, to $54.9
million from $44.5 million for the fourth quarter 2019 and
increased $3.0 million, or 5.8%, from $51.9 million in the third
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
increased 3 basis points to 4.14% for the fourth quarter 2020 from
4.11% for the fourth quarter 2019 and increased 19 basis points
from 3.95% for the third quarter 2020. Excluding the impact of
acquisition accounting adjustments, adjusted net interest margin on
a tax equivalent basis was 4.12% for the fourth quarter 2020
compared to 3.94% for the fourth quarter 2019 and 3.91% for the
third 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 fourth quarter 2020 was $2.0 million,
a decrease of $1.4 million, or 40.6%, compared to $3.4 million for
the fourth quarter 2019 and an increase of $169 thousand, or 9.1%,
compared to $1.9 million for the third quarter 2020. Fourth quarter
2020 noninterest income reflected lower transactional fee income
and significantly lower correspondent bank rebates when compared to
fourth quarter 2019.
Noninterest expense for the fourth quarter 2020 increased $3.3
million, or 11.3%, to $32.7 million from $29.4 million for the
fourth quarter 2019 and increased $184 thousand, or 0.6%, compared
to the third quarter 2020.
In the fourth quarter 2020, Allegiance’s efficiency ratio
decreased to 57.53% compared to 62.20% for the fourth quarter 2019
and 60.58% for the third quarter 2020. Fourth quarter 2020
annualized returns on average assets, average equity and average
tangible equity were 1.05%, 8.38% and 12.32%, respectively,
compared to 1.13%, 7.81% and 11.96%, respectively, for the fourth
quarter 2019. Annualized returns on average assets, average equity
and average tangible equity for the third quarter 2020 were 1.09%,
8.59% and 12.72%, respectively. Return on average tangible equity
is a non-GAAP measure. Please refer to the non-GAAP reconciliation
on page 11.
Year Ended December 31, 2020 Results
Net interest income before provision for credit losses for the
year ended December 31, 2020 increased $23.1 million, or
12.9%, to $202.7 million from $179.5 million for the year ended
December 31, 2019 primarily due to a $746.9 million, or 17.5%,
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 14 basis points to 4.08% for the year
ended December 31, 2020 from 4.22% for the year ended
December 31, 2019. Excluding the impact of acquisition
accounting adjustments, the adjusted net interest margin for the
year ended December 31, 2020 was 4.02%, compared to 4.00% for
the year ended December 31, 2019. Adjusted net interest margin
is a non-GAAP measure. Please refer to the non-GAAP reconciliation
on page 11.
Noninterest income for the year ended December 31, 2020 was
$8.2 million, a decrease of $5.3 million, or 39.2%, compared to
$13.4 million for the year ended December 31, 2019 due
primarily to significantly lower correspondent bank rebates and
losses on the sales of other real estate owned of $258 thousand.
Additionally, noninterest income for the year ended December 31,
2020 included $287 thousand of gains on the sale of securities
compared to $1.5 million for the year ended December 31, 2019.
Noninterest expense for the year ended December 31, 2020
increased $6.9 million, or 5.7%, to $127.5 million from $120.6
million for the year ended December 31, 2019. The increase in
noninterest expense during the year ended December 31, 2020
was primarily due to $4.1 million of other real estate write-downs
partially offset by having no merger-related expenses incurred
compared to $1.3 million during the year ended December 31,
2019.
Allegiance’s efficiency ratio decreased from 62.99% for the year
ended December 31, 2019 to 60.55% for the year ended
December 31, 2020. For the year ended December 31, 2020,
returns on average assets, average equity and average tangible
equity were 0.81%, 6.22% and 9.33%, respectively, compared to
1.10%, 7.48% and 11.50%, respectively, for the year ended
December 31, 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 December 31, 2020 increased $1.06 billion,
or 21.2%, to $6.05 billion compared to $4.99 billion at
December 31, 2019, primarily due to the origination of PPP
loans and growth in the securities portfolio, and increased $82.4
million, or 5.5% (annualized), compared to $5.97 billion at
September 30, 2020.
Total loans at December 31, 2020 increased $576.5 million,
or 14.7%, to $4.49 billion compared to $3.92 billion at
December 31, 2019, primarily due to the origination of $710.2
million of PPP loans, and decreased $100.6 million, or 8.8%
(annualized), compared to $4.59 billion at September 30, 2020.
Core loans, which exclude the mortgage warehouse portfolio and PPP
loans, increased $14.9 million, or 0.4%, to $3.92 billion at
December 31, 2020 from $3.91 billion at December 31, 2019 and
increased $39.7 million, or 4.1% (annualized), from $3.88 billion
at September 30, 2020.
Deposits at December 31, 2020 increased $920.4 million, or
22.6%, to $4.99 billion compared to $4.07 billion at
December 31, 2019 and increased $71.1 million, or 5.8%
(annualized), compared to $4.92 billion at September 30,
2020.
Asset Quality
Nonperforming assets totaled $38.1 million, or 0.63% of total
assets, at December 31, 2020, compared to $36.7 million, or
0.74% of total assets, at December 31, 2019 and $46.8 million,
or 0.78% of total assets, at September 30, 2020. Accounting
Standards Update (ASU) 2016-13, “Financial Instruments – Credit
Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments” (CECL), was effective for the Company on January 1,
2020; however, Section 4014 of 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 of the
impact of COVID-19, the Company chose to delay its implementation
of CECL until the fourth quarter of 2020, at which point the
standard was adopted retrospectively to January 1, 2020. The
allowance for loan losses for the quarter ending December 31, 2020
was calculated under the CECL methodology and as a percentage of
total loans was 1.18%. Other quarter-end periods presented for the
allowance for loan losses were not restated for CECL adoption and
were calculated under the incurred loss methodology. The
allowance for loan losses as a percentage of total loans was 0.75%
at December 31, 2019 and 1.06% at September 30, 2020.
The provision for credit losses for the fourth quarter 2020 was
$4.4 million, or 0.38% (annualized) of average loans, compared to
$933 thousand, or 0.10% (annualized) of average loans, for the
fourth quarter 2019 and $1.3 million, or 0.12% (annualized) of
average loans, for the third quarter 2020 primarily due to economic
risks and uncertainties related to the COVID-19 pandemic. The
Company’s $21.4 million of increased provision for credit losses
during the year ended December 31, 2020 compared to the same period
in 2019 reflects the uncertainty surrounding unemployment, the
economic impact caused by COVID-19 and the economic effects related
to the sustained lower crude oil prices.
Fourth quarter 2020 net charge-offs were $4.3 million, or 0.37%
(annualized) of average loans, an increase from net charge-offs of
$1.3 million, or 0.13% (annualized) of average loans, for the
fourth quarter 2019 and $291 thousand, or 0.03% (annualized) of
average loans, for the third quarter 2020. Net charge-offs for the
year ended December 31, 2020 were $8.0 million, or 0.12%
(annualized) of average loans, compared to net charge-offs for the
year ended December 31, 2019 of $2.8 million, or 0.07%
(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
$127.3 million, or 2.8% of total loans, at December 31, 2020,
of which $1.4 million were on nonaccrual. At December 31, 2020,
restaurant and bar industry loans, excluding PPP loans, totaled
$116.7 million, or 2.6%, of total loans, of which $494
thousand were on nonaccrual. At December 31, 2020, the
Company’s allowance for loan losses allocated to its hotel
portfolio was 3.2% 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 $74.8 million, or 1.7%,
of total loans at December 31, 2020, of which $494 thousand were on
nonaccrual. At December 31, 2020, the allowance for loan
losses allocated to the oil and gas loan portfolio was 2.3% of
total oil and gas loans.
During the year ended December 31, 2020, the Company granted
initial principal and interest deferrals on outstanding loan
balances to borrowers in connection with the COVID-19 relief
provided by the CARES Act and subsequent deferrals upon request and
after meeting certain conditions. These deferrals were generally no
more than 90 days in duration. As of December 31, 2020, 164 loans
with outstanding loan balances of $161.3 million remained on
deferral.
Dividend
On January 27, 2021, the Board of Directors of Allegiance
declared a cash dividend of $0.12 per share, an increase in the
quarterly dividend of 20%, to be paid on March 15, 2021 to all
shareholders of record as of February 26, 2021. 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, January 28, 2021 at 9:00 a.m.
Central Time (10:00 a.m. Eastern Time) to discuss its fourth
quarter and year-end 2020 results. Individuals and investment
professionals may participate in the call by dialing (877)
279-2520. The conference ID number is 6884418. Alternatively, a
simultaneous audio-only webcast may be accessed via the Investor
Relations section of Allegiance’s website at
www.allegiancebank.com, under Upcoming Events. If you are unable to
participate during the live webcast, the webcast will be archived
on the Investor Relations section of Allegiance’s website at
www.allegiancebank.com, under News and Events, Event Calendar, Past
Events.
Allegiance Bancshares, Inc.
As of December 31, 2020, Allegiance was a $6.05 billion
asset Houston, Texas-based bank holding company. Through its wholly
owned subsidiary, Allegiance Bank, Allegiance provides a
diversified range of commercial banking services primarily to
small- to medium-sized businesses and individual customers in the
Houston region. Allegiance’s super-community banking strategy was
designed to foster strong customer relationships while benefiting
from a platform and scale that is competitive with larger local and
regional banks. As of December 31, 2020, Allegiance Bank
operated 28 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 27 bank
offices in the Houston metropolitan area and one bank office 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 Reports on Form 10-Q for the
quarters ended March 31, 2020, June 30, 2020 and September 30, 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 |
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
|
(Dollars in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
122,897 |
|
|
$ |
327,416 |
|
|
$ |
237,585 |
|
|
$ |
156,700 |
|
|
$ |
213,347 |
|
Interest-bearing deposits at
other financial institutions |
|
|
299,869 |
|
|
|
19,732 |
|
|
|
28,815 |
|
|
|
18,189 |
|
|
|
132,901 |
|
Total cash and cash equivalents |
|
|
422,766 |
|
|
|
347,148 |
|
|
|
266,400 |
|
|
|
174,889 |
|
|
|
346,248 |
|
Available for sale securities, at
fair value |
|
|
772,890 |
|
|
|
663,301 |
|
|
|
618,751 |
|
|
|
508,250 |
|
|
|
372,545 |
|
Loans held for investment |
|
|
4,491,764 |
|
|
|
4,592,362 |
|
|
|
4,583,656 |
|
|
|
3,955,546 |
|
|
|
3,915,310 |
|
Less: allowance for loan
losses |
|
|
(53,173 |
) |
|
|
(48,698 |
) |
|
|
(47,642 |
) |
|
|
(37,511 |
) |
|
|
(29,438 |
) |
Loans, net |
|
|
4,438,591 |
|
|
|
4,543,664 |
|
|
|
4,536,014 |
|
|
|
3,918,035 |
|
|
|
3,885,872 |
|
Accrued interest
receivable |
|
|
40,053 |
|
|
|
36,996 |
|
|
|
32,795 |
|
|
|
17,203 |
|
|
|
15,468 |
|
Premises and equipment,
net |
|
|
70,685 |
|
|
|
69,887 |
|
|
|
67,229 |
|
|
|
66,798 |
|
|
|
66,790 |
|
Other real estate owned |
|
|
9,196 |
|
|
|
8,876 |
|
|
|
11,847 |
|
|
|
12,617 |
|
|
|
8,337 |
|
Federal Home Loan Bank
stock |
|
|
7,756 |
|
|
|
9,716 |
|
|
|
14,844 |
|
|
|
12,798 |
|
|
|
6,242 |
|
Bank owned life insurance |
|
|
27,686 |
|
|
|
27,542 |
|
|
|
27,398 |
|
|
|
27,255 |
|
|
|
27,104 |
|
Goodwill |
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
Core deposit intangibles,
net |
|
|
17,954 |
|
|
|
18,907 |
|
|
|
19,896 |
|
|
|
20,886 |
|
|
|
21,876 |
|
Other assets |
|
|
18,909 |
|
|
|
18,072 |
|
|
|
18,065 |
|
|
|
20,056 |
|
|
|
18,530 |
|
Total assets |
|
$ |
6,050,128 |
|
|
$ |
5,967,751 |
|
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
1,704,567 |
|
|
$ |
1,772,700 |
|
|
$ |
1,754,128 |
|
|
$ |
1,217,532 |
|
|
$ |
1,252,232 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
437,328 |
|
|
|
409,137 |
|
|
|
375,353 |
|
|
|
341,524 |
|
|
|
367,278 |
|
Money market and savings |
|
|
1,499,938 |
|
|
|
1,483,370 |
|
|
|
1,270,437 |
|
|
|
1,110,631 |
|
|
|
1,258,008 |
|
Certificates and other time |
|
|
1,346,649 |
|
|
|
1,252,159 |
|
|
|
1,300,793 |
|
|
|
1,283,887 |
|
|
|
1,190,583 |
|
Total interest-bearing deposits |
|
|
3,283,915 |
|
|
|
3,144,666 |
|
|
|
2,946,583 |
|
|
|
2,736,042 |
|
|
|
2,815,869 |
|
Total deposits |
|
|
4,988,482 |
|
|
|
4,917,366 |
|
|
|
4,700,711 |
|
|
|
3,953,574 |
|
|
|
4,068,101 |
|
Accrued interest payable |
|
|
2,701 |
|
|
|
3,082 |
|
|
|
3,293 |
|
|
|
3,821 |
|
|
|
4,326 |
|
Borrowed funds |
|
|
155,515 |
|
|
|
155,512 |
|
|
|
255,509 |
|
|
|
190,506 |
|
|
|
75,503 |
|
Subordinated debt |
|
|
108,322 |
|
|
|
108,191 |
|
|
|
108,061 |
|
|
|
107,930 |
|
|
|
107,799 |
|
Other liabilities |
|
|
36,439 |
|
|
|
30,547 |
|
|
|
33,164 |
|
|
|
40,005 |
|
|
|
27,060 |
|
Total liabilities |
|
|
5,291,459 |
|
|
|
5,214,698 |
|
|
|
5,100,738 |
|
|
|
4,295,836 |
|
|
|
4,282,789 |
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
20,208 |
|
|
|
20,445 |
|
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
Capital surplus |
|
|
508,794 |
|
|
|
516,151 |
|
|
|
515,045 |
|
|
|
513,894 |
|
|
|
521,066 |
|
Retained earnings |
|
|
195,236 |
|
|
|
186,866 |
|
|
|
172,723 |
|
|
|
164,858 |
|
|
|
163,375 |
|
Accumulated other
comprehensive income |
|
|
34,431 |
|
|
|
29,591 |
|
|
|
27,944 |
|
|
|
7,486 |
|
|
|
4,900 |
|
Total shareholders’ equity |
|
|
758,669 |
|
|
|
753,053 |
|
|
|
736,143 |
|
|
|
706,593 |
|
|
|
709,865 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
6,050,128 |
|
|
$ |
5,967,751 |
|
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
Year-to-Date |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
December 31 |
|
|
December 31 |
|
|
|
(Dollars in thousands, except per share data) |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
58,496 |
|
|
$ |
56,418 |
|
|
$ |
56,421 |
|
|
$ |
54,624 |
|
|
$ |
55,368 |
|
|
$ |
225,959 |
|
|
$ |
221,363 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,203 |
|
|
|
2,095 |
|
|
|
1,842 |
|
|
|
2,087 |
|
|
|
2,066 |
|
|
|
8,227 |
|
|
|
6,975 |
|
Tax-exempt |
|
|
2,316 |
|
|
|
2,280 |
|
|
|
2,169 |
|
|
|
546 |
|
|
|
469 |
|
|
|
7,311 |
|
|
|
2,934 |
|
Deposits in other financial institutions |
|
|
32 |
|
|
|
18 |
|
|
|
20 |
|
|
|
195 |
|
|
|
244 |
|
|
|
265 |
|
|
|
1,635 |
|
Total interest income |
|
|
63,047 |
|
|
|
60,811 |
|
|
|
60,452 |
|
|
|
57,452 |
|
|
|
58,147 |
|
|
|
241,762 |
|
|
|
232,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, money market and savings deposits |
|
|
1,621 |
|
|
|
1,657 |
|
|
|
1,729 |
|
|
|
4,364 |
|
|
|
5,091 |
|
|
|
9,371 |
|
|
|
18,307 |
|
Certificates and other time deposits |
|
|
4,507 |
|
|
|
5,239 |
|
|
|
5,845 |
|
|
|
6,084 |
|
|
|
6,483 |
|
|
|
21,675 |
|
|
|
26,656 |
|
Borrowed funds |
|
|
557 |
|
|
|
558 |
|
|
|
562 |
|
|
|
506 |
|
|
|
547 |
|
|
|
2,183 |
|
|
|
4,675 |
|
Subordinated debt |
|
|
1,460 |
|
|
|
1,448 |
|
|
|
1,469 |
|
|
|
1,473 |
|
|
|
1,500 |
|
|
|
5,850 |
|
|
|
3,732 |
|
Total interest expense |
|
|
8,145 |
|
|
|
8,902 |
|
|
|
9,605 |
|
|
|
12,427 |
|
|
|
13,621 |
|
|
|
39,079 |
|
|
|
53,370 |
|
NET INTEREST INCOME |
|
|
54,902 |
|
|
|
51,909 |
|
|
|
50,847 |
|
|
|
45,025 |
|
|
|
44,526 |
|
|
|
202,683 |
|
|
|
179,537 |
|
Provision for credit
losses |
|
|
4,368 |
|
|
|
1,347 |
|
|
|
10,669 |
|
|
|
10,990 |
|
|
|
933 |
|
|
|
27,374 |
|
|
|
5,939 |
|
Net interest income after
provision for credit losses |
|
|
50,534 |
|
|
|
50,562 |
|
|
|
40,178 |
|
|
|
34,035 |
|
|
|
43,593 |
|
|
|
175,309 |
|
|
|
173,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds fees |
|
|
100 |
|
|
|
75 |
|
|
|
60 |
|
|
|
169 |
|
|
|
189 |
|
|
|
404 |
|
|
|
658 |
|
Service charges on deposit accounts |
|
|
405 |
|
|
|
325 |
|
|
|
343 |
|
|
|
457 |
|
|
|
403 |
|
|
|
1,530 |
|
|
|
1,472 |
|
Gain on sale of securities |
|
|
— |
|
|
|
— |
|
|
|
93 |
|
|
|
194 |
|
|
|
613 |
|
|
|
287 |
|
|
|
1,459 |
|
Gain (loss) on sales of other real estate and repossessed
assets |
|
|
— |
|
|
|
117 |
|
|
|
(306 |
) |
|
|
(69 |
) |
|
|
(45 |
) |
|
|
(258 |
) |
|
|
26 |
|
Bank owned life insurance |
|
|
144 |
|
|
|
144 |
|
|
|
143 |
|
|
|
151 |
|
|
|
157 |
|
|
|
582 |
|
|
|
624 |
|
Rebate from correspondent bank |
|
|
196 |
|
|
|
98 |
|
|
|
89 |
|
|
|
493 |
|
|
|
900 |
|
|
|
876 |
|
|
|
3,580 |
|
Other |
|
|
1,174 |
|
|
|
1,091 |
|
|
|
1,140 |
|
|
|
1,330 |
|
|
|
1,183 |
|
|
|
4,735 |
|
|
|
5,604 |
|
Total noninterest income |
|
|
2,019 |
|
|
|
1,850 |
|
|
|
1,562 |
|
|
|
2,725 |
|
|
|
3,400 |
|
|
|
8,156 |
|
|
|
13,423 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
21,003 |
|
|
|
20,034 |
|
|
|
19,334 |
|
|
|
19,781 |
|
|
|
18,273 |
|
|
|
80,152 |
|
|
|
77,593 |
|
Net occupancy and equipment |
|
|
2,079 |
|
|
|
2,057 |
|
|
|
1,926 |
|
|
|
1,907 |
|
|
|
1,994 |
|
|
|
7,969 |
|
|
|
8,179 |
|
Depreciation |
|
|
1,019 |
|
|
|
946 |
|
|
|
885 |
|
|
|
866 |
|
|
|
861 |
|
|
|
3,716 |
|
|
|
3,192 |
|
Data processing and software amortization |
|
|
2,107 |
|
|
|
2,125 |
|
|
|
1,934 |
|
|
|
1,826 |
|
|
|
2,120 |
|
|
|
7,992 |
|
|
|
7,464 |
|
Professional fees |
|
|
999 |
|
|
|
756 |
|
|
|
800 |
|
|
|
573 |
|
|
|
540 |
|
|
|
3,128 |
|
|
|
2,333 |
|
Regulatory assessments and FDIC insurance |
|
|
810 |
|
|
|
875 |
|
|
|
609 |
|
|
|
632 |
|
|
|
216 |
|
|
|
2,926 |
|
|
|
1,705 |
|
Core deposit intangibles amortization |
|
|
953 |
|
|
|
989 |
|
|
|
990 |
|
|
|
990 |
|
|
|
1,177 |
|
|
|
3,922 |
|
|
|
4,711 |
|
Communications |
|
|
225 |
|
|
|
355 |
|
|
|
390 |
|
|
|
417 |
|
|
|
486 |
|
|
|
1,387 |
|
|
|
1,839 |
|
Advertising |
|
|
347 |
|
|
|
327 |
|
|
|
370 |
|
|
|
521 |
|
|
|
597 |
|
|
|
1,565 |
|
|
|
2,367 |
|
Other real estate expense |
|
|
382 |
|
|
|
2,017 |
|
|
|
114 |
|
|
|
2,649 |
|
|
|
164 |
|
|
|
5,162 |
|
|
|
614 |
|
Acquisition and merger-related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,326 |
|
Other |
|
|
2,825 |
|
|
|
2,084 |
|
|
|
2,427 |
|
|
|
2,239 |
|
|
|
3,003 |
|
|
|
9,575 |
|
|
|
9,312 |
|
Total noninterest expense |
|
|
32,749 |
|
|
|
32,565 |
|
|
|
29,779 |
|
|
|
32,401 |
|
|
|
29,431 |
|
|
|
127,494 |
|
|
|
120,635 |
|
INCOME BEFORE INCOME
TAXES |
|
|
19,804 |
|
|
|
19,847 |
|
|
|
11,961 |
|
|
|
4,359 |
|
|
|
17,562 |
|
|
|
55,971 |
|
|
|
66,386 |
|
Provision for income taxes |
|
|
3,863 |
|
|
|
3,677 |
|
|
|
2,054 |
|
|
|
843 |
|
|
|
3,576 |
|
|
|
10,437 |
|
|
|
13,427 |
|
NET INCOME |
|
$ |
15,941 |
|
|
$ |
16,170 |
|
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
45,534 |
|
|
$ |
52,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.78 |
|
|
$ |
0.79 |
|
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.68 |
|
|
$ |
2.23 |
|
|
$ |
2.50 |
|
Diluted |
|
$ |
0.77 |
|
|
$ |
0.79 |
|
|
$ |
0.48 |
|
|
$ |
0.17 |
|
|
$ |
0.67 |
|
|
$ |
2.22 |
|
|
$ |
2.47 |
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
Year-to-Date |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
December 31 |
|
|
December 31 |
|
|
|
(Dollars and share amounts in thousands, except per share
data) |
|
Net income |
|
$ |
15,941 |
|
|
$ |
16,170 |
|
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
45,534 |
|
|
$ |
52,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.78 |
|
|
$ |
0.79 |
|
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.68 |
|
|
$ |
2.23 |
|
|
$ |
2.50 |
|
Earnings per share,
diluted |
|
$ |
0.77 |
|
|
$ |
0.79 |
|
|
$ |
0.48 |
|
|
$ |
0.17 |
|
|
$ |
0.67 |
|
|
$ |
2.22 |
|
|
$ |
2.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(A) |
|
|
1.05 |
% |
|
|
1.09 |
% |
|
|
0.71 |
% |
|
|
0.29 |
% |
|
|
1.13 |
% |
|
|
0.81 |
% |
|
|
1.10 |
% |
Return on average
equity(A) |
|
|
8.38 |
% |
|
|
8.59 |
% |
|
|
5.51 |
% |
|
|
1.98 |
% |
|
|
7.81 |
% |
|
|
6.22 |
% |
|
|
7.48 |
% |
Return on average tangible
equity(A)(B) |
|
|
12.32 |
% |
|
|
12.72 |
% |
|
|
8.32 |
% |
|
|
3.02 |
% |
|
|
11.96 |
% |
|
|
9.33 |
% |
|
|
11.50 |
% |
Net interest margin (tax
equivalent)(C) |
|
|
4.14 |
% |
|
|
3.95 |
% |
|
|
4.10 |
% |
|
|
4.15 |
% |
|
|
4.11 |
% |
|
|
4.08 |
% |
|
|
4.22 |
% |
Adjusted net interest margin (tax
equivalent)(B) |
|
|
4.12 |
% |
|
|
3.91 |
% |
|
|
4.05 |
% |
|
|
4.04 |
% |
|
|
3.94 |
% |
|
|
4.02 |
% |
|
|
4.00 |
% |
Efficiency ratio(D) |
|
|
57.53 |
% |
|
|
60.58 |
% |
|
|
56.92 |
% |
|
|
68.13 |
% |
|
|
62.20 |
% |
|
|
60.55 |
% |
|
|
62.99 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares, Inc.
(Consolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
|
12.54 |
% |
|
|
12.62 |
% |
|
|
12.61 |
% |
|
|
14.12 |
% |
|
|
14.22 |
% |
|
|
12.54 |
% |
|
|
14.22 |
% |
Tangible equity to tangible assets(B) |
|
|
8.90 |
% |
|
|
8.92 |
% |
|
|
8.81 |
% |
|
|
9.71 |
% |
|
|
9.78 |
% |
|
|
8.90 |
% |
|
|
9.78 |
% |
Estimated common equity tier 1 capital |
|
|
11.80 |
% |
|
|
11.73 |
% |
|
|
11.36 |
% |
|
|
11.15 |
% |
|
|
11.42 |
% |
|
|
11.80 |
% |
|
|
11.42 |
% |
Estimated tier 1 risk-based capital |
|
|
12.04 |
% |
|
|
11.96 |
% |
|
|
11.60 |
% |
|
|
11.38 |
% |
|
|
11.66 |
% |
|
|
12.04 |
% |
|
|
11.66 |
% |
Estimated total risk-based capital |
|
|
15.71 |
% |
|
|
15.56 |
% |
|
|
15.17 |
% |
|
|
14.72 |
% |
|
|
14.83 |
% |
|
|
15.71 |
% |
|
|
14.83 |
% |
Estimated tier 1 leverage capital |
|
|
8.51 |
% |
|
|
8.70 |
% |
|
|
8.83 |
% |
|
|
9.89 |
% |
|
|
10.02 |
% |
|
|
8.51 |
% |
|
|
10.02 |
% |
Allegiance Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated common equity tier 1 capital |
|
|
13.32 |
% |
|
|
13.25 |
% |
|
|
12.84 |
% |
|
|
12.58 |
% |
|
|
12.67 |
% |
|
|
13.32 |
% |
|
|
12.67 |
% |
Estimated tier 1 risk-based capital |
|
|
13.32 |
% |
|
|
13.25 |
% |
|
|
12.84 |
% |
|
|
12.58 |
% |
|
|
12.67 |
% |
|
|
13.32 |
% |
|
|
12.67 |
% |
Estimated total risk-based capital |
|
|
15.55 |
% |
|
|
15.41 |
% |
|
|
14.97 |
% |
|
|
14.48 |
% |
|
|
14.39 |
% |
|
|
15.55 |
% |
|
|
14.39 |
% |
Estimated tier 1 leverage capital |
|
|
9.41 |
% |
|
|
9.64 |
% |
|
|
9.77 |
% |
|
|
10.94 |
% |
|
|
10.89 |
% |
|
|
9.41 |
% |
|
|
10.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,396 |
|
|
|
20,439 |
|
|
|
20,414 |
|
|
|
20,411 |
|
|
|
20,652 |
|
|
|
20,415 |
|
|
|
21,152 |
|
Diluted |
|
|
20,575 |
|
|
|
20,532 |
|
|
|
20,514 |
|
|
|
20,690 |
|
|
|
20,930 |
|
|
|
20,546 |
|
|
|
21,424 |
|
Period end shares
outstanding |
|
|
20,208 |
|
|
|
20,445 |
|
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,208 |
|
|
|
20,524 |
|
Book value per share |
|
$ |
37.54 |
|
|
$ |
36.83 |
|
|
$ |
36.03 |
|
|
$ |
34.71 |
|
|
$ |
34.59 |
|
|
$ |
37.54 |
|
|
$ |
34.59 |
|
Tangible book value per
share(B) |
|
$ |
25.59 |
|
|
$ |
24.97 |
|
|
$ |
24.11 |
|
|
$ |
22.70 |
|
|
$ |
22.62 |
|
|
$ |
25.59 |
|
|
$ |
22.62 |
|
(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 |
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
December 31, 2019 |
|
|
|
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 |
|
$ |
4,569,210 |
|
|
$ |
58,496 |
|
|
|
5.09 |
% |
|
$ |
4,594,333 |
|
|
$ |
56,418 |
|
|
|
4.89 |
% |
|
$ |
3,888,476 |
|
|
$ |
55,368 |
|
|
|
5.65 |
% |
Securities |
|
|
701,233 |
|
|
|
4,519 |
|
|
|
2.56 |
% |
|
|
667,008 |
|
|
|
4,375 |
|
|
|
2.61 |
% |
|
|
364,605 |
|
|
|
2,535 |
|
|
|
2.76 |
% |
Deposits in other financial
institutions and other |
|
|
58,664 |
|
|
|
32 |
|
|
|
0.22 |
% |
|
|
20,176 |
|
|
|
18 |
|
|
|
0.35 |
% |
|
|
54,947 |
|
|
|
244 |
|
|
|
1.76 |
% |
Total interest-earning assets |
|
|
5,329,107 |
|
|
$ |
63,047 |
|
|
|
4.71 |
% |
|
|
5,281,517 |
|
|
$ |
60,811 |
|
|
|
4.58 |
% |
|
|
4,308,028 |
|
|
$ |
58,147 |
|
|
|
5.35 |
% |
Allowance for loan losses |
|
|
(53,260 |
) |
|
|
|
|
|
|
|
|
|
|
(47,593 |
) |
|
|
|
|
|
|
|
|
|
|
(29,997 |
) |
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
783,200 |
|
|
|
|
|
|
|
|
|
|
|
679,750 |
|
|
|
|
|
|
|
|
|
|
|
639,601 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
6,059,047 |
|
|
|
|
|
|
|
|
|
|
$ |
5,913,674 |
|
|
|
|
|
|
|
|
|
|
$ |
4,917,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
430,145 |
|
|
$ |
386 |
|
|
|
0.36 |
% |
|
$ |
394,612 |
|
|
$ |
392 |
|
|
|
0.40 |
% |
|
$ |
361,666 |
|
|
$ |
952 |
|
|
|
1.04 |
% |
Money market and savings
deposits |
|
|
1,513,816 |
|
|
|
1,235 |
|
|
|
0.32 |
% |
|
|
1,409,969 |
|
|
|
1,265 |
|
|
|
0.36 |
% |
|
|
1,169,996 |
|
|
|
4,139 |
|
|
|
1.40 |
% |
Certificates and other time
deposits |
|
|
1,284,181 |
|
|
|
4,507 |
|
|
|
1.40 |
% |
|
|
1,291,536 |
|
|
|
5,239 |
|
|
|
1.61 |
% |
|
|
1,203,110 |
|
|
|
6,483 |
|
|
|
2.14 |
% |
Borrowed funds |
|
|
157,687 |
|
|
|
557 |
|
|
|
1.41 |
% |
|
|
171,804 |
|
|
|
558 |
|
|
|
1.29 |
% |
|
|
86,372 |
|
|
|
547 |
|
|
|
2.51 |
% |
Subordinated debt |
|
|
108,259 |
|
|
|
1,460 |
|
|
|
5.37 |
% |
|
|
108,130 |
|
|
|
1,448 |
|
|
|
5.33 |
% |
|
|
107,782 |
|
|
|
1,500 |
|
|
|
5.52 |
% |
Total interest-bearing liabilities |
|
|
3,494,088 |
|
|
$ |
8,145 |
|
|
|
0.93 |
% |
|
|
3,376,051 |
|
|
$ |
8,902 |
|
|
|
1.05 |
% |
|
|
2,928,926 |
|
|
$ |
13,621 |
|
|
|
1.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
1,766,826 |
|
|
|
|
|
|
|
|
|
|
|
1,752,404 |
|
|
|
|
|
|
|
|
|
|
|
1,237,770 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
41,434 |
|
|
|
|
|
|
|
|
|
|
|
36,572 |
|
|
|
|
|
|
|
|
|
|
|
40,781 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
5,302,348 |
|
|
|
|
|
|
|
|
|
|
|
5,165,027 |
|
|
|
|
|
|
|
|
|
|
|
4,207,477 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
756,699 |
|
|
|
|
|
|
|
|
|
|
|
748,647 |
|
|
|
|
|
|
|
|
|
|
|
710,155 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
6,059,047 |
|
|
|
|
|
|
|
|
|
|
$ |
5,913,674 |
|
|
|
|
|
|
|
|
|
|
$ |
4,917,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.78 |
% |
|
|
|
|
|
|
|
|
|
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
|
|
|
$ |
54,902 |
|
|
|
4.10 |
% |
|
|
|
|
|
$ |
51,909 |
|
|
|
3.91 |
% |
|
|
|
|
|
$ |
44,526 |
|
|
|
4.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
|
|
|
$ |
55,477 |
|
|
|
4.14 |
% |
|
|
|
|
|
$ |
52,446 |
|
|
|
3.95 |
% |
|
|
|
|
|
$ |
44,623 |
|
|
|
4.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Years Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
|
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 |
|
$ |
4,383,375 |
|
|
$ |
225,959 |
|
|
|
5.15 |
% |
|
$ |
3,831,894 |
|
|
$ |
221,363 |
|
|
|
5.78 |
% |
Securities |
|
|
588,318 |
|
|
|
15,538 |
|
|
|
2.64 |
% |
|
|
355,233 |
|
|
|
9,909 |
|
|
|
2.79 |
% |
Deposits in other financial
institutions |
|
|
36,945 |
|
|
|
265 |
|
|
|
0.72 |
% |
|
|
74,655 |
|
|
|
1,635 |
|
|
|
2.19 |
% |
Total interest-earning assets |
|
|
5,008,638 |
|
|
$ |
241,762 |
|
|
|
4.83 |
% |
|
|
4,261,782 |
|
|
$ |
232,907 |
|
|
|
5.47 |
% |
Allowance for loan losses |
|
|
(46,680 |
) |
|
|
|
|
|
|
|
|
|
|
(28,129 |
) |
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
675,701 |
|
|
|
|
|
|
|
|
|
|
|
594,981 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,637,659 |
|
|
|
|
|
|
|
|
|
|
$ |
4,828,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
385,482 |
|
|
$ |
2,045 |
|
|
|
0.53 |
% |
|
$ |
345,693 |
|
|
$ |
4,010 |
|
|
|
1.16 |
% |
Money market and savings
deposits |
|
|
1,316,188 |
|
|
|
7,326 |
|
|
|
0.56 |
% |
|
|
1,037,126 |
|
|
|
14,297 |
|
|
|
1.38 |
% |
Certificates and other time
deposits |
|
|
1,268,080 |
|
|
|
21,675 |
|
|
|
1.71 |
% |
|
|
1,276,684 |
|
|
|
26,656 |
|
|
|
2.09 |
% |
Borrowed funds |
|
|
197,525 |
|
|
|
2,183 |
|
|
|
1.11 |
% |
|
|
127,138 |
|
|
|
4,675 |
|
|
|
3.68 |
% |
Subordinated debt |
|
|
108,064 |
|
|
|
5,850 |
|
|
|
5.41 |
% |
|
|
64,451 |
|
|
|
3,732 |
|
|
|
5.79 |
% |
Total interest-bearing liabilities |
|
|
3,275,339 |
|
|
$ |
39,079 |
|
|
|
1.19 |
% |
|
|
2,851,092 |
|
|
$ |
53,370 |
|
|
|
1.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
1,593,354 |
|
|
|
|
|
|
|
|
|
|
|
1,194,496 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
37,278 |
|
|
|
|
|
|
|
|
|
|
|
74,777 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
4,905,971 |
|
|
|
|
|
|
|
|
|
|
|
4,120,365 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
731,688 |
|
|
|
|
|
|
|
|
|
|
|
708,269 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
5,637,659 |
|
|
|
|
|
|
|
|
|
|
$ |
4,828,634 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.64 |
% |
|
|
|
|
|
|
|
|
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
|
|
|
$ |
202,683 |
|
|
|
4.05 |
% |
|
|
|
|
|
$ |
179,537 |
|
|
|
4.21 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
|
|
|
$ |
204,416 |
|
|
|
4.08 |
% |
|
|
|
|
|
$ |
180,036 |
|
|
|
4.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
|
2020 |
|
|
2019 |
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
|
(Dollars in thousands) |
|
Period-end Loan Portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
667,079 |
|
|
$ |
650,634 |
|
|
$ |
651,430 |
|
|
$ |
702,267 |
|
|
$ |
689,360 |
|
Mortgage warehouse |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,051 |
|
|
|
8,304 |
|
Paycheck Protection Program
(PPP) |
|
|
569,901 |
|
|
|
710,234 |
|
|
|
695,772 |
|
|
|
— |
|
|
|
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
1,999,877 |
|
|
|
1,971,228 |
|
|
|
1,956,116 |
|
|
|
1,951,080 |
|
|
|
1,873,782 |
|
Commercial real estate construction and land development |
|
|
367,213 |
|
|
|
376,877 |
|
|
|
386,865 |
|
|
|
378,987 |
|
|
|
410,471 |
|
1-4 family residential (including home equity) |
|
|
737,605 |
|
|
|
716,565 |
|
|
|
703,513 |
|
|
|
704,212 |
|
|
|
698,957 |
|
Residential construction |
|
|
127,522 |
|
|
|
148,056 |
|
|
|
171,656 |
|
|
|
177,025 |
|
|
|
192,515 |
|
Consumer and other |
|
|
22,567 |
|
|
|
18,768 |
|
|
|
18,304 |
|
|
|
40,924 |
|
|
|
41,921 |
|
Total loans |
|
$ |
4,491,764 |
|
|
$ |
4,592,362 |
|
|
$ |
4,583,656 |
|
|
$ |
3,955,546 |
|
|
$ |
3,915,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
28,893 |
|
|
$ |
37,928 |
|
|
$ |
33,223 |
|
|
$ |
21,621 |
|
|
$ |
28,371 |
|
Accruing loans 90 or more days
past due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
|
28,893 |
|
|
|
37,928 |
|
|
|
33,223 |
|
|
|
21,621 |
|
|
|
28,371 |
|
Other real estate |
|
|
9,196 |
|
|
|
8,876 |
|
|
|
11,847 |
|
|
|
12,617 |
|
|
|
8,337 |
|
Other repossessed assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
|
$ |
38,089 |
|
|
$ |
46,804 |
|
|
$ |
45,070 |
|
|
$ |
34,238 |
|
|
$ |
36,708 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
$ |
4,287 |
|
|
$ |
291 |
|
|
$ |
538 |
|
|
$ |
2,917 |
|
|
$ |
1,303 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
10,747 |
|
|
$ |
13,171 |
|
|
$ |
12,578 |
|
|
$ |
8,669 |
|
|
$ |
8,388 |
|
Mortgage warehouse |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
10,081 |
|
|
|
15,849 |
|
|
|
16,127 |
|
|
|
7,024 |
|
|
|
6,741 |
|
Commercial real estate construction and land development |
|
|
3,011 |
|
|
|
3,085 |
|
|
|
53 |
|
|
|
1,958 |
|
|
|
9,050 |
|
1-4 family residential (including home equity) |
|
|
4,525 |
|
|
|
4,263 |
|
|
|
3,434 |
|
|
|
2,845 |
|
|
|
3,294 |
|
Residential construction |
|
|
— |
|
|
|
876 |
|
|
|
898 |
|
|
|
982 |
|
|
|
746 |
|
Consumer and other |
|
|
529 |
|
|
|
684 |
|
|
|
133 |
|
|
|
143 |
|
|
|
152 |
|
Total nonaccrual loans |
|
$ |
28,893 |
|
|
$ |
37,928 |
|
|
$ |
33,223 |
|
|
$ |
21,621 |
|
|
$ |
28,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets |
|
|
0.63 |
% |
|
|
0.78 |
% |
|
|
0.77 |
% |
|
|
0.68 |
% |
|
|
0.74 |
% |
Nonperforming loans to total
loans |
|
|
0.64 |
% |
|
|
0.83 |
% |
|
|
0.72 |
% |
|
|
0.55 |
% |
|
|
0.72 |
% |
Allowance for loan losses to
nonperforming loans |
|
|
184.03 |
% |
|
|
128.40 |
% |
|
|
143.40 |
% |
|
|
173.49 |
% |
|
|
103.76 |
% |
Allowance for loan losses to
total loans |
|
|
1.18 |
% |
|
|
1.06 |
% |
|
|
1.04 |
% |
|
|
0.95 |
% |
|
|
0.75 |
% |
Net charge-offs to average
loans (annualized) |
|
|
0.37 |
% |
|
|
0.03 |
% |
|
|
0.05 |
% |
|
|
0.30 |
% |
|
|
0.13 |
% |
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 |
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
December 31 |
|
|
December 31 |
|
|
(Dollars and share amounts in thousands, except per share
data) |
|
Total shareholders' equity |
$ |
758,669 |
|
|
$ |
753,053 |
|
|
$ |
736,143 |
|
|
$ |
706,593 |
|
|
$ |
709,865 |
|
|
$ |
758,669 |
|
|
$ |
709,865 |
|
Less: Goodwill and core
deposit intangibles, net |
|
241,596 |
|
|
|
242,549 |
|
|
|
243,538 |
|
|
|
244,528 |
|
|
|
245,518 |
|
|
|
241,596 |
|
|
|
245,518 |
|
Tangible
shareholders’ equity |
$ |
517,073 |
|
|
$ |
510,504 |
|
|
$ |
492,605 |
|
|
$ |
462,065 |
|
|
$ |
464,347 |
|
|
$ |
517,073 |
|
|
$ |
464,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of
period |
|
20,208 |
|
|
|
20,445 |
|
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,208 |
|
|
|
20,524 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share |
$ |
25.59 |
|
|
$ |
24.97 |
|
|
$ |
24.11 |
|
|
$ |
22.70 |
|
|
$ |
22.62 |
|
|
$ |
25.59 |
|
|
$ |
22.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
15,941 |
|
|
$ |
16,170 |
|
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
45,534 |
|
|
$ |
52,959 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
756,699 |
|
|
$ |
748,647 |
|
|
$ |
723,104 |
|
|
$ |
713,535 |
|
|
$ |
710,155 |
|
|
$ |
731,688 |
|
|
$ |
708,269 |
|
Less: Average goodwill and
core deposit intangibles, net |
|
242,043 |
|
|
|
243,015 |
|
|
|
244,010 |
|
|
|
245,007 |
|
|
|
246,154 |
|
|
|
243,513 |
|
|
|
247,854 |
|
Average tangible shareholders’
equity |
$ |
514,656 |
|
|
$ |
505,632 |
|
|
$ |
479,094 |
|
|
$ |
468,528 |
|
|
$ |
464,001 |
|
|
$ |
488,175 |
|
|
$ |
460,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average tangible equity |
|
12.32 |
% |
|
|
12.72 |
% |
|
|
8.32 |
% |
|
|
3.02 |
% |
|
|
11.96 |
% |
|
|
9.33 |
% |
|
|
11.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
6,050,128 |
|
|
$ |
5,967,751 |
|
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
$ |
6,050,128 |
|
|
$ |
4,992,654 |
|
Less: Goodwill and core
deposit intangibles, net |
|
241,596 |
|
|
|
242,549 |
|
|
|
243,538 |
|
|
|
244,528 |
|
|
|
245,518 |
|
|
|
241,596 |
|
|
|
245,518 |
|
Tangible
assets |
$ |
5,808,532 |
|
|
$ |
5,725,202 |
|
|
$ |
5,593,343 |
|
|
$ |
4,757,901 |
|
|
$ |
4,747,136 |
|
|
$ |
5,808,532 |
|
|
$ |
4,747,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets |
|
8.90 |
% |
|
|
8.92 |
% |
|
|
8.81 |
% |
|
|
9.71 |
% |
|
|
9.78 |
% |
|
|
8.90 |
% |
|
|
9.78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent) |
$ |
55,477 |
|
|
$ |
52,446 |
|
|
$ |
51,342 |
|
|
$ |
45,152 |
|
|
$ |
44,623 |
|
|
$ |
204,416 |
|
|
$ |
180,036 |
|
Less: Acquisition accounting
adjustments |
|
(342 |
) |
|
|
(598 |
) |
|
|
(665 |
) |
|
|
(1,259 |
) |
|
|
(1,860 |
) |
|
|
(2,864 |
) |
|
|
(9,625 |
) |
Adjusted net
interest income (tax equivalent) |
$ |
55,135 |
|
|
$ |
51,848 |
|
|
$ |
50,677 |
|
|
$ |
43,893 |
|
|
$ |
42,763 |
|
|
$ |
201,552 |
|
|
$ |
170,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
5,329,107 |
|
|
$ |
5,281,517 |
|
|
$ |
5,037,414 |
|
|
$ |
4,372,723 |
|
|
$ |
4,308,028 |
|
|
$ |
5,008,638 |
|
|
$ |
4,261,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (tax equivalent) |
|
4.14 |
% |
|
|
3.95 |
% |
|
|
4.10 |
% |
|
|
4.15 |
% |
|
|
4.11 |
% |
|
|
4.08 |
% |
|
|
4.22 |
% |
Adjusted net interest
margin (tax equivalent) |
|
4.12 |
% |
|
|
3.91 |
% |
|
|
4.05 |
% |
|
|
4.04 |
% |
|
|
3.94 |
% |
|
|
4.02 |
% |
|
|
4.00 |
% |
Allegiance Bancshares, Inc.8847 West Sam
Houston Parkway N., Suite 200Houston, Texas
77040ir@allegiancebank.com
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