Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the
holding company of Allegiance Bank (the "Bank"), today reported net
income of $16.2 million and diluted earnings per share of $0.79 for
the third quarter 2020 compared to net income of $12.0 million and
diluted earnings per share of $0.57 for the third quarter 2019. Net
income for the nine months ended September 30, 2020 was $29.6
million, or $1.44 per diluted share, compared to $39.0 million, or
$1.81 per diluted share, for the nine months ended September 30,
2019. The three months ended September 30, 2020 results
were primarily due to increased net interest income partially
offset by write-downs of other real estate of $1.9 million. The
nine months ended September 30, 2020 results were primarily
impacted 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.
“Given the continuing economic slowdown and uncertainties due to
the pandemic, we are very pleased with our level of loan and
deposit production and core earnings that contributed to a record
level of net income for the third quarter. Our team continues to
work diligently to support our customers and the communities we
serve. The experience we have with our long established customer
relationships and disciplined underwriting are key strengths that
guide and serve us well during this extended period of recovery,”
said Steve Retzloff, Allegiance’s Chief Executive Officer. “We
further extended our customer outreach during the third quarter as
we assessed current conditions and related risks and as we
determined appropriate grading of our portfolio and related
assessments. These one-on-one discussions and status updates, as
well as working with those who requested payment deferrals, give us
confidence in the overall quality of our loan portfolio,” commented
Retzloff.
“We believe our strong liquidity, solid capital and focus on
expense management, as well as the tradition of community banking,
experience and continued commitment of the entire Allegiance team,
will help ensure that our core business is solid and resilient. We
remain focused on achieving our goals as we strategically position
Allegiance to provide long-term value to our shareholders, and
continue to be a source of strength for our customers, employees
and community as we all navigate toward a more normalized economic
environment,” concluded Retzloff.
Third Quarter
2020 Results
Net interest income before the provision for loan losses in the
third quarter 2020 increased $7.1 million, or 15.8%, to $51.9
million from $44.8 million for the third quarter 2019 and increased
$1.1 million, or 2.1%, from $50.8 million in the second 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 21 basis points to 3.95% for the third quarter 2020 from
4.16% for the third quarter 2019 and decreased 15 basis points from
4.10% for the second quarter 2020. Excluding the impact of
acquisition accounting adjustments, adjusted net interest margin on
a tax equivalent basis was 3.91% for the third quarter 2020
compared to 3.97% for the third quarter 2019 and 4.05% for the
second 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 third quarter 2020 was $1.9 million,
a decrease of $1.0 million, or 36.0%, compared to $2.9 million for
the third quarter 2019 and an increase of $288 thousand, or 18.4%,
compared to $1.6 million for the second quarter 2020. Third quarter
2020 noninterest income reflected lower transactional fee income
and significantly lower correspondent bank rebates.
Noninterest expense for the third quarter 2020 increased $2.6
million, or 8.5%, to $32.6 million from $30.0 million for the third
quarter 2019 and increased $2.8 million, or 9.4%, compared to the
second quarter 2020. Noninterest expense for the third quarter 2020
included $1.9 million of other real estate write-downs.
In the third quarter 2020, Allegiance’s efficiency ratio was
60.58% compared to 56.92% for the second quarter 2020 and 62.88%
for the third quarter 2019. Third quarter 2020 annualized returns
on average assets, average equity and average tangible equity were
1.09%, 8.59% and 12.72%, respectively, compared to 0.71%, 5.51% and
8.32%, respectively, for the second quarter 2020. Annualized
returns on average assets, average equity and average tangible
equity for the third quarter 2019 were 0.98%, 6.73% and 10.33%,
respectively. Return on average tangible equity is a non-GAAP
measure. Please refer to the non-GAAP reconciliation on page
11.
Nine Months Ended
September 30, 2020 Results
Net interest income before provision for loan losses for the
nine months ended September 30, 2020 increased $12.8 million,
or 9.5%, to $147.8 million from $135.0 million for the nine months
ended September 30, 2019 primarily due to a $654.4 million, or
15.4%, 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 21 basis points to 4.06% for the nine
months ended September 30, 2020 from 4.27% for the nine months
ended September 30, 2019. Excluding the impact of acquisition
accounting adjustments, the adjusted net interest margin for the
nine months ended September 30, 2020 was 3.99%, compared to
4.02% for the nine months ended September 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 nine months ended September 30,
2020 was $6.1 million, a decrease of $3.9 million, or 38.8%,
compared to $10.0 million for the nine months ended
September 30, 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 first nine months of 2020 included $287 thousand of gains on
the sale of securities compared to $846 thousand for the first nine
months of 2019.
Noninterest expense for the nine months ended September 30,
2020 increased $3.5 million, or 3.9%, to $94.7 million from $91.2
million for the nine months ended September 30, 2019. The
increase in noninterest expense during the nine months ended
September 30, 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 first nine months of 2019.
Allegiance’s efficiency ratio decreased from 63.25% for the nine
months ended September 30, 2019 to 61.67% for the nine months
ended September 30, 2020. For the nine months ended
September 30, 2020, returns on average assets, average equity
and average tangible equity were 0.72%, 5.43% and 8.16%,
respectively, compared to 1.09%, 7.36% and 11.35%, respectively,
for the nine months ended September 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 September 30, 2020 increased $130.9
million, or 9.0% (annualized), to $5.97 billion compared to $5.84
billion at June 30, 2020 and increased $1.06 billion, or
21.6%, compared to $4.91 billion at September 30, 2019,
primarily due to the origination of PPP loans and growth in the
securities portfolio.
Total loans at September 30, 2020 increased $8.7 million,
or 0.8% (annualized), to $4.59 billion compared to $4.58 billion at
June 30, 2020 and increased $706.4 million, or 18.2%, compared
to $3.89 billion at September 30, 2019, primarily due to the
origination of $710.2 million of PPP loans. Core loans, which
exclude the mortgage warehouse portfolio and PPP loans, decreased
$5.8 million, or 0.6% (annualized), to $3.88 billion at
September 30, 2020 from $3.89 billion at June 30, 2020
and increased $32.7 million, or 0.8%, from $3.85 billion at
September 30, 2019.
Deposits at September 30, 2020 increased $216.7 million, or
18.4% (annualized), to $4.92 billion compared to $4.70 billion at
June 30, 2020 and increased $1.02 billion, or 26.2%, compared
to $3.90 billion at September 30, 2019.
Asset Quality
Nonperforming assets totaled $46.8 million, or 0.78% of total
assets, at September 30, 2020, compared to $45.1 million, or
0.77% of total assets, at June 30, 2020, and $42.9 million, or
0.88% of total assets, at September 30, 2019. The allowance
for loan losses was 1.06% of total loans at September 30,
2020, 1.04% of total loans at June 30, 2020 and 0.77% of total
loans at September 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 third quarter 2020 was
$1.3 million, or 0.12% (annualized) of average loans, compared to
$10.7 million, or 0.97% (annualized) of average loans, for the
second quarter 2020 and $2.6 million, or 0.27% (annualized) of
average loans for the third quarter 2019 primarily due to economic
risks and uncertainties related to the COVID-19 pandemic. The
Company’s increased provision for loan losses of $18.0 million
during the nine months ended 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.
Third quarter 2020 net charge-offs were $291 thousand, or 0.03%
(annualized) of average loans, a decrease from net charge-offs of
$538 thousand, or 0.05% (annualized) of average loans, for the
second quarter 2020 and $729 thousand, or 0.07% (annualized) of
average loans, for the third quarter 2019. Net charge-offs for the
nine months ended September 30, 2020 were $3.7 million, or
0.12% (annualized) of average loans, compared to net charge-offs
for the nine months ended September 30, 2019 of $1.5 million,
or 0.05% (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
$133.8 million, or 2.9% of total loans, at September 30, 2020,
of which $7.1 million were on nonaccrual. At September 30, 2020,
restaurant and bar industry loans, excluding PPP loans, totaled
$117.1 million, or 2.6%, of total loans, of which $683
thousand were on nonaccrual. At September 30, 2020, the
Company’s allowance for loan losses allocated to its hotel
portfolio was 4.0% of total hotel loans and its restaurant and bar
portfolio was 1.2% of total restaurant and bar loans. The oil and
gas portfolio, excluding PPP loans, totaled $74.0 million, or 1.6%,
of total loans at September 30, 2020, of which $592 thousand were
on nonaccrual. At September 30, 2020, the allowance for loan
losses allocated to the oil and gas loan portfolio was 2.0% of
total oil and gas loans.
During the nine months ended September 30, 2020, the Company
granted 2,007 initial principal and interest deferrals on
outstanding loan balances of $1.15 billion at September 30, 2020
with associated accrued interest of $16.1 million to borrowers in
connection with the COVID-19 relief provided by the CARES Act. Of
the initial deferrals, 242 loans with outstanding loan balances of
$219.6 million had been granted additional deferrals upon request
and after meeting certain conditions with associated accrued
interest of $3.4 million as of September 30, 2020. These deferrals
were generally no more than 90 days in duration. As of September
30, 2020, 286 loans with outstanding loan balances of $237.0
million remained on deferral.
Dividend
On October 22, 2020, the Board of Directors of Allegiance
declared a cash dividend of $0.10 per share to be paid on December
15, 2020 to all shareholders of record as of November 30, 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, October 29, 2020 at 9:00 a.m.
Central Time (10:00 a.m. Eastern Time) to discuss its third quarter
2020 results. Individuals and investment professionals may
participate in the call by dialing (877) 279-2520. The conference
ID number is 1188487. 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 September 30, 2020, Allegiance was a $5.97 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 September 30, 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
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 Reports on Form 10-Q for the
quarters ended March 31, 2020 and June 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 |
|
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
|
(Dollars in thousands) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
327,416 |
|
|
$ |
237,585 |
|
|
$ |
156,700 |
|
|
$ |
213,347 |
|
|
$ |
246,312 |
|
Interest-bearing deposits at
other financial institutions |
|
|
19,732 |
|
|
|
28,815 |
|
|
|
18,189 |
|
|
|
132,901 |
|
|
|
54,307 |
|
Total cash and cash equivalents |
|
|
347,148 |
|
|
|
266,400 |
|
|
|
174,889 |
|
|
|
346,248 |
|
|
|
300,619 |
|
Available for sale securities, at
fair value |
|
|
663,301 |
|
|
|
618,751 |
|
|
|
508,250 |
|
|
|
372,545 |
|
|
|
353,000 |
|
Loans held for investment |
|
|
4,592,362 |
|
|
|
4,583,656 |
|
|
|
3,955,546 |
|
|
|
3,915,310 |
|
|
|
3,886,004 |
|
Less: allowance for loan
losses |
|
|
(48,698 |
) |
|
|
(47,642 |
) |
|
|
(37,511 |
) |
|
|
(29,438 |
) |
|
|
(29,808 |
) |
Loans, net |
|
|
4,543,664 |
|
|
|
4,536,014 |
|
|
|
3,918,035 |
|
|
|
3,885,872 |
|
|
|
3,856,196 |
|
Accrued interest
receivable |
|
|
36,996 |
|
|
|
32,795 |
|
|
|
17,203 |
|
|
|
15,468 |
|
|
|
15,201 |
|
Premises and equipment,
net |
|
|
69,887 |
|
|
|
67,229 |
|
|
|
66,798 |
|
|
|
66,790 |
|
|
|
67,175 |
|
Other real estate owned |
|
|
8,876 |
|
|
|
11,847 |
|
|
|
12,617 |
|
|
|
8,337 |
|
|
|
8,333 |
|
Federal Home Loan Bank
stock |
|
|
9,716 |
|
|
|
14,844 |
|
|
|
12,798 |
|
|
|
6,242 |
|
|
|
14,138 |
|
Bank owned life insurance |
|
|
27,542 |
|
|
|
27,398 |
|
|
|
27,255 |
|
|
|
27,104 |
|
|
|
26,947 |
|
Goodwill |
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
|
|
223,642 |
|
Core deposit intangibles,
net |
|
|
18,907 |
|
|
|
19,896 |
|
|
|
20,886 |
|
|
|
21,876 |
|
|
|
23,053 |
|
Other assets |
|
|
18,072 |
|
|
|
18,065 |
|
|
|
20,056 |
|
|
|
18,530 |
|
|
|
17,536 |
|
Total assets |
|
$ |
5,967,751 |
|
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
$ |
4,905,840 |
|
LIABILITIES AND SHAREHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
|
$ |
1,772,700 |
|
|
$ |
1,754,128 |
|
|
$ |
1,217,532 |
|
|
$ |
1,252,232 |
|
|
$ |
1,227,839 |
|
Interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
409,137 |
|
|
|
375,353 |
|
|
|
341,524 |
|
|
|
367,278 |
|
|
|
340,754 |
|
Money market and savings |
|
|
1,483,370 |
|
|
|
1,270,437 |
|
|
|
1,110,631 |
|
|
|
1,258,008 |
|
|
|
1,114,233 |
|
Certificates and other time |
|
|
1,252,159 |
|
|
|
1,300,793 |
|
|
|
1,283,887 |
|
|
|
1,190,583 |
|
|
|
1,214,659 |
|
Total interest-bearing deposits |
|
|
3,144,666 |
|
|
|
2,946,583 |
|
|
|
2,736,042 |
|
|
|
2,815,869 |
|
|
|
2,669,646 |
|
Total deposits |
|
|
4,917,366 |
|
|
|
4,700,711 |
|
|
|
3,953,574 |
|
|
|
4,068,101 |
|
|
|
3,897,485 |
|
Accrued interest payable |
|
|
3,082 |
|
|
|
3,293 |
|
|
|
3,821 |
|
|
|
4,326 |
|
|
|
4,915 |
|
Borrowed funds |
|
|
155,512 |
|
|
|
255,509 |
|
|
|
190,506 |
|
|
|
75,503 |
|
|
|
159,501 |
|
Subordinated debt |
|
|
108,191 |
|
|
|
108,061 |
|
|
|
107,930 |
|
|
|
107,799 |
|
|
|
107,771 |
|
Other liabilities |
|
|
30,547 |
|
|
|
33,164 |
|
|
|
40,005 |
|
|
|
27,060 |
|
|
|
29,860 |
|
Total liabilities |
|
|
5,214,698 |
|
|
|
5,100,738 |
|
|
|
4,295,836 |
|
|
|
4,282,789 |
|
|
|
4,199,532 |
|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
20,445 |
|
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,737 |
|
Capital surplus |
|
|
516,151 |
|
|
|
515,045 |
|
|
|
513,894 |
|
|
|
521,066 |
|
|
|
529,688 |
|
Retained earnings |
|
|
186,866 |
|
|
|
172,723 |
|
|
|
164,858 |
|
|
|
163,375 |
|
|
|
149,389 |
|
Accumulated other
comprehensive income |
|
|
29,591 |
|
|
|
27,944 |
|
|
|
7,486 |
|
|
|
4,900 |
|
|
|
6,494 |
|
Total shareholders’ equity |
|
|
753,053 |
|
|
|
736,143 |
|
|
|
706,593 |
|
|
|
709,865 |
|
|
|
706,308 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
$ |
5,967,751 |
|
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
$ |
4,905,840 |
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
Year-to-Date |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
September 30 |
|
|
September 30 |
|
|
|
(Dollars in thousands, except per share data) |
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
56,418 |
|
|
$ |
56,421 |
|
|
$ |
54,624 |
|
|
$ |
55,368 |
|
|
$ |
55,790 |
|
|
$ |
167,463 |
|
|
$ |
165,995 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,095 |
|
|
|
1,842 |
|
|
|
2,087 |
|
|
|
2,066 |
|
|
|
2,090 |
|
|
|
6,024 |
|
|
|
4,909 |
|
Tax-exempt |
|
|
2,280 |
|
|
|
2,169 |
|
|
|
546 |
|
|
|
469 |
|
|
|
483 |
|
|
|
4,995 |
|
|
|
2,465 |
|
Deposits in other financial institutions |
|
|
18 |
|
|
|
20 |
|
|
|
195 |
|
|
|
244 |
|
|
|
302 |
|
|
|
233 |
|
|
|
1,391 |
|
Total interest income |
|
|
60,811 |
|
|
|
60,452 |
|
|
|
57,452 |
|
|
|
58,147 |
|
|
|
58,665 |
|
|
|
178,715 |
|
|
|
174,760 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, money market and savings deposits |
|
|
1,657 |
|
|
|
1,729 |
|
|
|
4,364 |
|
|
|
5,091 |
|
|
|
4,975 |
|
|
|
7,750 |
|
|
|
13,216 |
|
Certificates and other time deposits |
|
|
5,239 |
|
|
|
5,845 |
|
|
|
6,084 |
|
|
|
6,483 |
|
|
|
6,909 |
|
|
|
17,168 |
|
|
|
20,173 |
|
Borrowed funds |
|
|
558 |
|
|
|
562 |
|
|
|
506 |
|
|
|
547 |
|
|
|
1,183 |
|
|
|
1,626 |
|
|
|
4,128 |
|
Subordinated debt |
|
|
1,448 |
|
|
|
1,469 |
|
|
|
1,473 |
|
|
|
1,500 |
|
|
|
761 |
|
|
|
4,390 |
|
|
|
2,232 |
|
Total interest expense |
|
|
8,902 |
|
|
|
9,605 |
|
|
|
12,427 |
|
|
|
13,621 |
|
|
|
13,828 |
|
|
|
30,934 |
|
|
|
39,749 |
|
NET INTEREST INCOME |
|
|
51,909 |
|
|
|
50,847 |
|
|
|
45,025 |
|
|
|
44,526 |
|
|
|
44,837 |
|
|
|
147,781 |
|
|
|
135,011 |
|
Provision for loan losses |
|
|
1,347 |
|
|
|
10,669 |
|
|
|
10,990 |
|
|
|
933 |
|
|
|
2,597 |
|
|
|
23,006 |
|
|
|
5,006 |
|
Net interest income after
provision for loan losses |
|
|
50,562 |
|
|
|
40,178 |
|
|
|
34,035 |
|
|
|
43,593 |
|
|
|
42,240 |
|
|
|
124,775 |
|
|
|
130,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds fees |
|
|
75 |
|
|
|
60 |
|
|
|
169 |
|
|
|
189 |
|
|
|
168 |
|
|
|
304 |
|
|
|
469 |
|
Service charges on deposit accounts |
|
|
325 |
|
|
|
343 |
|
|
|
457 |
|
|
|
403 |
|
|
|
379 |
|
|
|
1,125 |
|
|
|
1,069 |
|
Gain on sale of securities |
|
|
— |
|
|
|
93 |
|
|
|
194 |
|
|
|
613 |
|
|
|
— |
|
|
|
287 |
|
|
|
846 |
|
Gain (loss) on sales of other real estate and repossessed
assets |
|
|
117 |
|
|
|
(306 |
) |
|
|
(69 |
) |
|
|
(45 |
) |
|
|
— |
|
|
|
(258 |
) |
|
|
71 |
|
Bank owned life insurance |
|
|
144 |
|
|
|
143 |
|
|
|
151 |
|
|
|
157 |
|
|
|
153 |
|
|
|
438 |
|
|
|
467 |
|
Rebate from correspondent bank |
|
|
98 |
|
|
|
89 |
|
|
|
493 |
|
|
|
900 |
|
|
|
900 |
|
|
|
680 |
|
|
|
2,680 |
|
Other |
|
|
1,091 |
|
|
|
1,140 |
|
|
|
1,330 |
|
|
|
1,183 |
|
|
|
1,289 |
|
|
|
3,561 |
|
|
|
4,421 |
|
Total noninterest income |
|
|
1,850 |
|
|
|
1,562 |
|
|
|
2,725 |
|
|
|
3,400 |
|
|
|
2,889 |
|
|
|
6,137 |
|
|
|
10,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
20,034 |
|
|
|
19,334 |
|
|
|
19,781 |
|
|
|
18,273 |
|
|
|
20,221 |
|
|
|
59,149 |
|
|
|
59,320 |
|
Net occupancy and equipment |
|
|
2,057 |
|
|
|
1,926 |
|
|
|
1,907 |
|
|
|
1,994 |
|
|
|
1,973 |
|
|
|
5,890 |
|
|
|
6,139 |
|
Depreciation |
|
|
946 |
|
|
|
885 |
|
|
|
866 |
|
|
|
861 |
|
|
|
822 |
|
|
|
2,697 |
|
|
|
2,331 |
|
Data processing and software amortization |
|
|
2,125 |
|
|
|
1,934 |
|
|
|
1,826 |
|
|
|
2,120 |
|
|
|
2,058 |
|
|
|
5,885 |
|
|
|
5,390 |
|
Professional fees |
|
|
756 |
|
|
|
800 |
|
|
|
573 |
|
|
|
540 |
|
|
|
667 |
|
|
|
2,129 |
|
|
|
1,793 |
|
Regulatory assessments and FDIC insurance |
|
|
875 |
|
|
|
609 |
|
|
|
632 |
|
|
|
216 |
|
|
|
(41 |
) |
|
|
2,116 |
|
|
|
1,489 |
|
Core deposit intangibles amortization |
|
|
989 |
|
|
|
990 |
|
|
|
990 |
|
|
|
1,177 |
|
|
|
1,178 |
|
|
|
2,969 |
|
|
|
3,534 |
|
Communications |
|
|
355 |
|
|
|
390 |
|
|
|
417 |
|
|
|
486 |
|
|
|
455 |
|
|
|
1,162 |
|
|
|
1,353 |
|
Advertising |
|
|
327 |
|
|
|
370 |
|
|
|
521 |
|
|
|
597 |
|
|
|
449 |
|
|
|
1,218 |
|
|
|
1,770 |
|
Other real estate expense |
|
|
2,017 |
|
|
|
114 |
|
|
|
2,649 |
|
|
|
164 |
|
|
|
137 |
|
|
|
4,780 |
|
|
|
450 |
|
Acquisition and merger-related expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,326 |
|
Other |
|
|
2,084 |
|
|
|
2,427 |
|
|
|
2,239 |
|
|
|
3,003 |
|
|
|
2,090 |
|
|
|
6,750 |
|
|
|
6,309 |
|
Total noninterest expense |
|
|
32,565 |
|
|
|
29,779 |
|
|
|
32,401 |
|
|
|
29,431 |
|
|
|
30,009 |
|
|
|
94,745 |
|
|
|
91,204 |
|
INCOME BEFORE INCOME
TAXES |
|
|
19,847 |
|
|
|
11,961 |
|
|
|
4,359 |
|
|
|
17,562 |
|
|
|
15,120 |
|
|
|
36,167 |
|
|
|
48,824 |
|
Provision for income taxes |
|
|
3,677 |
|
|
|
2,054 |
|
|
|
843 |
|
|
|
3,576 |
|
|
|
3,073 |
|
|
|
6,574 |
|
|
|
9,851 |
|
NET INCOME |
|
$ |
16,170 |
|
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
12,047 |
|
|
$ |
29,593 |
|
|
$ |
38,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.79 |
|
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.68 |
|
|
$ |
0.57 |
|
|
$ |
1.45 |
|
|
$ |
1.83 |
|
Diluted |
|
$ |
0.79 |
|
|
$ |
0.48 |
|
|
$ |
0.17 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
$ |
1.44 |
|
|
$ |
1.81 |
|
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
Year-to-Date |
|
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
September 30 |
|
|
September 30 |
|
|
|
(Dollars and share amounts in thousands, except per share
data) |
|
Net income |
|
$ |
16,170 |
|
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
12,047 |
|
|
$ |
29,593 |
|
|
$ |
38,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.79 |
|
|
$ |
0.49 |
|
|
$ |
0.17 |
|
|
$ |
0.68 |
|
|
$ |
0.57 |
|
|
$ |
1.45 |
|
|
$ |
1.83 |
|
Earnings per share,
diluted |
|
$ |
0.79 |
|
|
$ |
0.48 |
|
|
$ |
0.17 |
|
|
$ |
0.67 |
|
|
$ |
0.57 |
|
|
$ |
1.44 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets(A) |
|
|
1.09 |
% |
|
|
0.71 |
% |
|
|
0.29 |
% |
|
|
1.13 |
% |
|
|
0.98 |
% |
|
|
0.72 |
% |
|
|
1.09 |
% |
Return on average
equity(A) |
|
|
8.59 |
% |
|
|
5.51 |
% |
|
|
1.98 |
% |
|
|
7.81 |
% |
|
|
6.73 |
% |
|
|
5.43 |
% |
|
|
7.36 |
% |
Return on average tangible
equity(A)(B) |
|
|
12.72 |
% |
|
|
8.32 |
% |
|
|
3.02 |
% |
|
|
11.96 |
% |
|
|
10.33 |
% |
|
|
8.16 |
% |
|
|
11.35 |
% |
Net interest margin (tax
equivalent)(C) |
|
|
3.95 |
% |
|
|
4.10 |
% |
|
|
4.15 |
% |
|
|
4.11 |
% |
|
|
4.16 |
% |
|
|
4.06 |
% |
|
|
4.27 |
% |
Adjusted net interest margin (tax
equivalent)(B) |
|
|
3.91 |
% |
|
|
4.05 |
% |
|
|
4.04 |
% |
|
|
3.94 |
% |
|
|
3.97 |
% |
|
|
3.99 |
% |
|
|
4.02 |
% |
Efficiency ratio(D) |
|
|
60.58 |
% |
|
|
56.92 |
% |
|
|
68.13 |
% |
|
|
62.20 |
% |
|
|
62.88 |
% |
|
|
61.67 |
% |
|
|
63.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares, Inc.
(Consolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
|
12.62 |
% |
|
|
12.61 |
% |
|
|
14.12 |
% |
|
|
14.22 |
% |
|
|
14.40 |
% |
|
|
12.62 |
% |
|
|
14.40 |
% |
Tangible equity to tangible assets(B) |
|
|
8.92 |
% |
|
|
8.81 |
% |
|
|
9.71 |
% |
|
|
9.78 |
% |
|
|
9.86 |
% |
|
|
8.92 |
% |
|
|
9.86 |
% |
Estimated common equity tier 1 capital |
|
|
11.73 |
% |
|
|
11.36 |
% |
|
|
11.15 |
% |
|
|
11.42 |
% |
|
|
11.28 |
% |
|
|
11.73 |
% |
|
|
11.28 |
% |
Estimated tier 1 risk-based capital |
|
|
11.96 |
% |
|
|
11.60 |
% |
|
|
11.38 |
% |
|
|
11.66 |
% |
|
|
11.51 |
% |
|
|
11.96 |
% |
|
|
11.51 |
% |
Estimated total risk-based capital |
|
|
15.56 |
% |
|
|
15.17 |
% |
|
|
14.72 |
% |
|
|
14.83 |
% |
|
|
14.70 |
% |
|
|
15.56 |
% |
|
|
14.70 |
% |
Estimated tier 1 leverage capital |
|
|
8.70 |
% |
|
|
8.83 |
% |
|
|
9.89 |
% |
|
|
10.02 |
% |
|
|
10.06 |
% |
|
|
8.70 |
% |
|
|
10.06 |
% |
Allegiance Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated common equity tier 1 capital |
|
|
13.25 |
% |
|
|
12.84 |
% |
|
|
12.58 |
% |
|
|
12.67 |
% |
|
|
12.28 |
% |
|
|
13.25 |
% |
|
|
12.28 |
% |
Estimated tier 1 risk-based capital |
|
|
13.25 |
% |
|
|
12.84 |
% |
|
|
12.58 |
% |
|
|
12.67 |
% |
|
|
12.28 |
% |
|
|
13.25 |
% |
|
|
12.28 |
% |
Estimated total risk-based capital |
|
|
15.41 |
% |
|
|
14.97 |
% |
|
|
14.48 |
% |
|
|
14.39 |
% |
|
|
14.01 |
% |
|
|
15.41 |
% |
|
|
14.01 |
% |
Estimated tier 1 leverage capital |
|
|
9.64 |
% |
|
|
9.77 |
% |
|
|
10.94 |
% |
|
|
10.89 |
% |
|
|
10.73 |
% |
|
|
9.64 |
% |
|
|
10.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
20,439 |
|
|
|
20,414 |
|
|
|
20,411 |
|
|
|
20,652 |
|
|
|
20,981 |
|
|
|
20,421 |
|
|
|
21,321 |
|
Diluted |
|
|
20,532 |
|
|
|
20,514 |
|
|
|
20,690 |
|
|
|
20,930 |
|
|
|
21,256 |
|
|
|
20,551 |
|
|
|
21,591 |
|
Period end shares
outstanding |
|
|
20,445 |
|
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,737 |
|
|
|
20,445 |
|
|
|
20,737 |
|
Book value per share |
|
$ |
36.83 |
|
|
$ |
36.03 |
|
|
$ |
34.71 |
|
|
$ |
34.59 |
|
|
$ |
34.06 |
|
|
$ |
36.83 |
|
|
$ |
34.06 |
|
Tangible book value per
share(B) |
|
$ |
24.97 |
|
|
$ |
24.11 |
|
|
$ |
22.70 |
|
|
$ |
22.62 |
|
|
$ |
22.16 |
|
|
$ |
24.97 |
|
|
$ |
22.16 |
|
(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 |
|
|
|
September 30,
2020 |
|
|
June 30,
2020 |
|
|
September 30,
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 |
|
$ |
4,594,333 |
|
|
$ |
56,418 |
|
|
|
4.89 |
% |
|
$ |
4,425,036 |
|
|
$ |
56,421 |
|
|
|
5.13 |
% |
|
$ |
3,870,205 |
|
|
$ |
55,790 |
|
|
|
5.72 |
% |
Securities |
|
|
667,008 |
|
|
|
4,375 |
|
|
|
2.61 |
% |
|
|
594,205 |
|
|
|
4,011 |
|
|
|
2.71 |
% |
|
|
359,392 |
|
|
|
2,573 |
|
|
|
2.84 |
% |
Deposits in other financial
institutions and other |
|
|
20,176 |
|
|
|
18 |
|
|
|
0.35 |
% |
|
|
18,173 |
|
|
|
20 |
|
|
|
0.44 |
% |
|
|
55,070 |
|
|
|
302 |
|
|
|
2.17 |
% |
Total interest-earning assets |
|
|
5,281,517 |
|
|
$ |
60,811 |
|
|
|
4.58 |
% |
|
|
5,037,414 |
|
|
$ |
60,452 |
|
|
|
4.83 |
% |
|
|
4,284,667 |
|
|
$ |
58,665 |
|
|
|
5.43 |
% |
Allowance for loan losses |
|
|
(47,593 |
) |
|
|
|
|
|
|
|
|
|
|
(41,334 |
) |
|
|
|
|
|
|
|
|
|
|
(28,593 |
) |
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
679,750 |
|
|
|
|
|
|
|
|
|
|
|
637,608 |
|
|
|
|
|
|
|
|
|
|
|
600,004 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,913,674 |
|
|
|
|
|
|
|
|
|
|
$ |
5,633,688 |
|
|
|
|
|
|
|
|
|
|
$ |
4,856,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
394,612 |
|
|
$ |
392 |
|
|
|
0.40 |
% |
|
$ |
353,252 |
|
|
$ |
421 |
|
|
|
0.48 |
% |
|
$ |
332,652 |
|
|
$ |
943 |
|
|
|
1.13 |
% |
Money market and savings
deposits |
|
|
1,409,969 |
|
|
|
1,265 |
|
|
|
0.36 |
% |
|
|
1,169,225 |
|
|
|
1,308 |
|
|
|
0.45 |
% |
|
|
1,099,937 |
|
|
|
4,032 |
|
|
|
1.45 |
% |
Certificates and other time
deposits |
|
|
1,291,536 |
|
|
|
5,239 |
|
|
|
1.61 |
% |
|
|
1,302,743 |
|
|
|
5,845 |
|
|
|
1.80 |
% |
|
|
1,269,886 |
|
|
|
6,909 |
|
|
|
2.16 |
% |
Borrowed funds |
|
|
171,804 |
|
|
|
558 |
|
|
|
1.29 |
% |
|
|
320,332 |
|
|
|
562 |
|
|
|
0.71 |
% |
|
|
158,358 |
|
|
|
1,183 |
|
|
|
2.96 |
% |
Subordinated debt |
|
|
108,130 |
|
|
|
1,448 |
|
|
|
5.33 |
% |
|
|
107,998 |
|
|
|
1,469 |
|
|
|
5.47 |
% |
|
|
51,607 |
|
|
|
761 |
|
|
|
5.85 |
% |
Total interest-bearing liabilities |
|
|
3,376,051 |
|
|
$ |
8,902 |
|
|
|
1.05 |
% |
|
|
3,253,550 |
|
|
$ |
9,605 |
|
|
|
1.19 |
% |
|
|
2,912,440 |
|
|
$ |
13,828 |
|
|
|
1.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
1,752,404 |
|
|
|
|
|
|
|
|
|
|
|
1,624,641 |
|
|
|
|
|
|
|
|
|
|
|
1,198,564 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
36,572 |
|
|
|
|
|
|
|
|
|
|
|
32,393 |
|
|
|
|
|
|
|
|
|
|
|
35,030 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
5,165,027 |
|
|
|
|
|
|
|
|
|
|
|
4,910,584 |
|
|
|
|
|
|
|
|
|
|
|
4,146,034 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
748,647 |
|
|
|
|
|
|
|
|
|
|
|
723,104 |
|
|
|
|
|
|
|
|
|
|
|
710,044 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
5,913,674 |
|
|
|
|
|
|
|
|
|
|
$ |
5,633,688 |
|
|
|
|
|
|
|
|
|
|
$ |
4,856,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
3.64 |
% |
|
|
|
|
|
|
|
|
|
|
3.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
|
|
|
$ |
51,909 |
|
|
|
3.91 |
% |
|
|
|
|
|
$ |
50,847 |
|
|
|
4.06 |
% |
|
|
|
|
|
$ |
44,837 |
|
|
|
4.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
|
|
|
$ |
52,446 |
|
|
|
3.95 |
% |
|
|
|
|
|
$ |
51,342 |
|
|
|
4.10 |
% |
|
|
|
|
|
$ |
44,924 |
|
|
|
4.16 |
% |
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Nine Months Ended
September 30, |
|
|
|
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 |
|
$ |
4,318,564 |
|
|
$ |
167,463 |
|
|
|
5.18 |
% |
|
$ |
3,812,827 |
|
|
$ |
165,995 |
|
|
|
5.82 |
% |
Securities |
|
|
550,405 |
|
|
|
11,019 |
|
|
|
2.67 |
% |
|
|
352,074 |
|
|
|
7,374 |
|
|
|
2.80 |
% |
Deposits in other financial
institutions |
|
|
29,652 |
|
|
|
233 |
|
|
|
1.05 |
% |
|
|
79,309 |
|
|
|
1,391 |
|
|
|
2.34 |
% |
Total interest-earning assets |
|
|
4,898,621 |
|
|
$ |
178,715 |
|
|
|
4.87 |
% |
|
|
4,244,210 |
|
|
$ |
174,760 |
|
|
|
5.51 |
% |
Allowance for loan losses |
|
|
(39,245 |
) |
|
|
|
|
|
|
|
|
|
|
(27,500 |
) |
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
639,606 |
|
|
|
|
|
|
|
|
|
|
|
581,932 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,498,982 |
|
|
|
|
|
|
|
|
|
|
$ |
4,798,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand
deposits |
|
$ |
370,485 |
|
|
$ |
1,659 |
|
|
|
0.60 |
% |
|
$ |
340,310 |
|
|
$ |
3,058 |
|
|
|
1.20 |
% |
Money market and savings
deposits |
|
|
1,249,832 |
|
|
|
6,091 |
|
|
|
0.65 |
% |
|
|
992,349 |
|
|
|
10,158 |
|
|
|
1.37 |
% |
Certificates and other time
deposits |
|
|
1,262,674 |
|
|
|
17,168 |
|
|
|
1.82 |
% |
|
|
1,301,478 |
|
|
|
20,173 |
|
|
|
2.07 |
% |
Borrowed funds |
|
|
210,902 |
|
|
|
1,626 |
|
|
|
1.03 |
% |
|
|
198,839 |
|
|
|
4,128 |
|
|
|
2.78 |
% |
Subordinated debt |
|
|
107,998 |
|
|
|
4,390 |
|
|
|
5.43 |
% |
|
|
49,849 |
|
|
|
2,232 |
|
|
|
5.99 |
% |
Total interest-bearing liabilities |
|
|
3,201,891 |
|
|
$ |
30,934 |
|
|
|
1.29 |
% |
|
|
2,882,825 |
|
|
$ |
39,749 |
|
|
|
1.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
deposits |
|
|
1,535,107 |
|
|
|
|
|
|
|
|
|
|
|
1,179,914 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
33,482 |
|
|
|
|
|
|
|
|
|
|
|
28,270 |
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
4,770,480 |
|
|
|
|
|
|
|
|
|
|
|
4,091,009 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
728,502 |
|
|
|
|
|
|
|
|
|
|
|
707,633 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
5,498,982 |
|
|
|
|
|
|
|
|
|
|
$ |
4,798,642 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
|
|
|
|
|
3.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and
margin |
|
|
|
|
|
$ |
147,781 |
|
|
|
4.03 |
% |
|
|
|
|
|
$ |
135,011 |
|
|
|
4.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and net
interest margin (tax equivalent) |
|
|
|
|
|
$ |
148,939 |
|
|
|
4.06 |
% |
|
|
|
|
|
$ |
135,413 |
|
|
|
4.27 |
% |
Allegiance Bancshares,
Inc.Financial
Highlights(Unaudited)
|
|
Three Months Ended |
|
|
|
2020 |
|
|
2019 |
|
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
|
(Dollars in thousands) |
|
Period-end Loan
Portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
650,634 |
|
|
$ |
651,430 |
|
|
$ |
702,267 |
|
|
$ |
689,360 |
|
|
$ |
675,055 |
|
Mortgage warehouse |
|
|
— |
|
|
|
— |
|
|
|
1,051 |
|
|
|
8,304 |
|
|
|
36,594 |
|
Paycheck Protection Program
(PPP) |
|
|
710,234 |
|
|
|
695,772 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
1,971,228 |
|
|
|
1,956,116 |
|
|
|
1,951,080 |
|
|
|
1,873,782 |
|
|
|
1,859,721 |
|
Commercial real estate construction and land development |
|
|
376,877 |
|
|
|
386,865 |
|
|
|
378,987 |
|
|
|
410,471 |
|
|
|
386,723 |
|
1-4 family residential (including home equity) |
|
|
716,565 |
|
|
|
703,513 |
|
|
|
704,212 |
|
|
|
698,957 |
|
|
|
695,520 |
|
Residential construction |
|
|
148,056 |
|
|
|
171,656 |
|
|
|
177,025 |
|
|
|
192,515 |
|
|
|
189,608 |
|
Consumer and other |
|
|
18,768 |
|
|
|
18,304 |
|
|
|
40,924 |
|
|
|
41,921 |
|
|
|
42,783 |
|
Total loans |
|
$ |
4,592,362 |
|
|
$ |
4,583,656 |
|
|
$ |
3,955,546 |
|
|
$ |
3,915,310 |
|
|
$ |
3,886,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
37,928 |
|
|
$ |
33,223 |
|
|
$ |
21,621 |
|
|
$ |
28,371 |
|
|
$ |
34,615 |
|
Accruing loans 90 or more days
past due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming loans |
|
|
37,928 |
|
|
|
33,223 |
|
|
|
21,621 |
|
|
|
28,371 |
|
|
|
34,615 |
|
Other real estate |
|
|
8,876 |
|
|
|
11,847 |
|
|
|
12,617 |
|
|
|
8,337 |
|
|
|
8,333 |
|
Other repossessed assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total nonperforming assets |
|
$ |
46,804 |
|
|
$ |
45,070 |
|
|
$ |
34,238 |
|
|
$ |
36,708 |
|
|
$ |
42,948 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
$ |
291 |
|
|
$ |
538 |
|
|
$ |
2,917 |
|
|
$ |
1,303 |
|
|
$ |
729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
13,171 |
|
|
$ |
12,578 |
|
|
$ |
8,669 |
|
|
$ |
8,388 |
|
|
$ |
8,033 |
|
Mortgage warehouse |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
15,849 |
|
|
|
16,127 |
|
|
|
7,024 |
|
|
|
6,741 |
|
|
|
15,356 |
|
Commercial real estate construction and land development |
|
|
3,085 |
|
|
|
53 |
|
|
|
1,958 |
|
|
|
9,050 |
|
|
|
9,050 |
|
1-4 family residential (including home equity) |
|
|
4,263 |
|
|
|
3,434 |
|
|
|
2,845 |
|
|
|
3,294 |
|
|
|
1,992 |
|
Residential construction |
|
|
876 |
|
|
|
898 |
|
|
|
982 |
|
|
|
746 |
|
|
|
— |
|
Consumer and other |
|
|
684 |
|
|
|
133 |
|
|
|
143 |
|
|
|
152 |
|
|
|
184 |
|
Total nonaccrual loans |
|
$ |
37,928 |
|
|
$ |
33,223 |
|
|
$ |
21,621 |
|
|
$ |
28,371 |
|
|
$ |
34,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total
assets |
|
|
0.78 |
% |
|
|
0.77 |
% |
|
|
0.68 |
% |
|
|
0.74 |
% |
|
|
0.88 |
% |
Nonperforming loans to total
loans |
|
|
0.83 |
% |
|
|
0.72 |
% |
|
|
0.55 |
% |
|
|
0.72 |
% |
|
|
0.89 |
% |
Allowance for loan losses to
nonperforming loans |
|
|
128.40 |
% |
|
|
143.40 |
% |
|
|
173.49 |
% |
|
|
103.76 |
% |
|
|
86.11 |
% |
Allowance for loan losses to
total loans |
|
|
1.06 |
% |
|
|
1.04 |
% |
|
|
0.95 |
% |
|
|
0.75 |
% |
|
|
0.77 |
% |
Net charge-offs to average
loans (annualized) |
|
|
0.03 |
% |
|
|
0.05 |
% |
|
|
0.30 |
% |
|
|
0.13 |
% |
|
|
0.07 |
% |
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 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
September 30 |
|
|
September 30 |
|
|
September 30 |
|
|
(Dollars and share amounts in thousands, except per share
data) |
|
Total shareholders'
equity |
$ |
753,053 |
|
|
$ |
736,143 |
|
|
$ |
706,593 |
|
|
$ |
709,865 |
|
|
$ |
706,308 |
|
|
$ |
753,053 |
|
|
$ |
706,308 |
|
Less: Goodwill and core
deposit intangibles, net |
|
242,549 |
|
|
|
243,538 |
|
|
|
244,528 |
|
|
|
245,518 |
|
|
|
246,695 |
|
|
|
242,549 |
|
|
|
246,695 |
|
Tangible
shareholders’
equity |
$ |
510,504 |
|
|
$ |
492,605 |
|
|
$ |
462,065 |
|
|
$ |
464,347 |
|
|
$ |
459,613 |
|
|
$ |
510,504 |
|
|
$ |
459,613 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of
period |
|
20,445 |
|
|
|
20,431 |
|
|
|
20,355 |
|
|
|
20,524 |
|
|
|
20,737 |
|
|
|
20,445 |
|
|
|
20,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value
per share |
$ |
24.97 |
|
|
$ |
24.11 |
|
|
$ |
22.70 |
|
|
$ |
22.62 |
|
|
$ |
22.16 |
|
|
$ |
24.97 |
|
|
$ |
22.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
$ |
16,170 |
|
|
$ |
9,907 |
|
|
$ |
3,516 |
|
|
$ |
13,986 |
|
|
$ |
12,047 |
|
|
$ |
29,593 |
|
|
$ |
38,973 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders'
equity |
$ |
748,647 |
|
|
$ |
723,104 |
|
|
$ |
713,535 |
|
|
$ |
710,155 |
|
|
$ |
710,044 |
|
|
$ |
728,502 |
|
|
$ |
707,633 |
|
Less: Average goodwill and
core deposit intangibles, net |
|
243,015 |
|
|
|
244,010 |
|
|
|
245,007 |
|
|
|
246,154 |
|
|
|
247,404 |
|
|
|
244,007 |
|
|
|
248,427 |
|
Average tangible shareholders’
equity |
$ |
505,632 |
|
|
$ |
479,094 |
|
|
$ |
468,528 |
|
|
$ |
464,001 |
|
|
$ |
462,640 |
|
|
$ |
484,495 |
|
|
$ |
459,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average tangible equity |
|
12.72 |
% |
|
|
8.32 |
% |
|
|
3.02 |
% |
|
|
11.96 |
% |
|
|
10.33 |
% |
|
|
8.16 |
% |
|
|
11.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,967,751 |
|
|
$ |
5,836,881 |
|
|
$ |
5,002,429 |
|
|
$ |
4,992,654 |
|
|
$ |
4,905,840 |
|
|
$ |
5,967,751 |
|
|
$ |
4,905,840 |
|
Less: Goodwill and core
deposit intangibles, net |
|
242,549 |
|
|
|
243,538 |
|
|
|
244,528 |
|
|
|
245,518 |
|
|
|
246,695 |
|
|
|
242,549 |
|
|
|
246,695 |
|
Tangible
assets |
$ |
5,725,202 |
|
|
$ |
5,593,343 |
|
|
$ |
4,757,901 |
|
|
$ |
4,747,136 |
|
|
$ |
4,659,145 |
|
|
$ |
5,725,202 |
|
|
$ |
4,659,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets |
|
8.92 |
% |
|
|
8.81 |
% |
|
|
9.71 |
% |
|
|
9.78 |
% |
|
|
9.86 |
% |
|
|
8.92 |
% |
|
|
9.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (tax equivalent) |
$ |
52,446 |
|
|
$ |
51,342 |
|
|
$ |
45,152 |
|
|
$ |
44,623 |
|
|
$ |
44,924 |
|
|
$ |
148,939 |
|
|
$ |
135,413 |
|
Less: Acquisition accounting
adjustments |
|
(598 |
) |
|
|
(665 |
) |
|
|
(1,259 |
) |
|
|
(1,860 |
) |
|
|
(2,045 |
) |
|
|
(2,522 |
) |
|
|
(7,765 |
) |
Adjusted net
interest income (tax equivalent) |
$ |
51,848 |
|
|
$ |
50,677 |
|
|
$ |
43,893 |
|
|
$ |
42,763 |
|
|
$ |
42,879 |
|
|
$ |
146,417 |
|
|
$ |
127,648 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
$ |
5,281,517 |
|
|
$ |
5,037,414 |
|
|
$ |
4,372,723 |
|
|
$ |
4,308,028 |
|
|
$ |
4,284,667 |
|
|
$ |
4,898,621 |
|
|
$ |
4,244,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (tax equivalent) |
|
3.95 |
% |
|
|
4.10 |
% |
|
|
4.15 |
% |
|
|
4.11 |
% |
|
|
4.16 |
% |
|
|
4.06 |
% |
|
|
4.27 |
% |
Adjusted net interest
margin (tax equivalent) |
|
3.91 |
% |
|
|
4.05 |
% |
|
|
4.04 |
% |
|
|
3.94 |
% |
|
|
3.97 |
% |
|
|
3.99 |
% |
|
|
4.02 |
% |
Allegiance Bancshares, Inc.8847 West Sam
Houston Parkway N., Suite 200Houston, Texas
77040ir@allegiancebank.com
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