- Core loans, excluding mortgage warehouse loans and loans held for sale, increased 4.6% for the fourth quarter 2015 over the third quarter 2015
- Strong asset quality as evidenced by annualized net charge-offs of 0.06% for the fourth quarter 2015 and a nonperforming assets to total assets ratio of 0.30%
- Completed Initial Public Offering of 2,990,000 shares generating net proceeds of approximately $57.2 million during the fourth quarter of 2015
HOUSTON, Jan. 26, 2016 (GLOBE NEWSWIRE) -- Allegiance Bancshares, Inc. (NASDAQ:ABTX), the holding company of Allegiance Bank (collectively, “Allegiance”), reported net income attributable to common stockholders for the three months ended December 31, 2015 of $4.2 million, a 4.1% increase compared to the three months ended September 30, 2015 and an 83.1% increase compared with the three months ended December 31, 2014. Diluted earnings per common share for the three months ended December 31, 2015 decreased 17.5% to $0.33, compared to $0.40 for the three months ended September 30, 2015, reflecting a 25.9% increase in weighted average diluted common shares outstanding due to Allegiance’s Initial Public Offering (IPO) completed during the fourth quarter of 2015, and increased 3.1% from $0.32 for the three months ended December 31, 2014. The shares issued in Allegiance’s IPO had a $0.09 impact on diluted earnings per common share for the three months ended December 31, 2015. Additionally, during the first quarter of 2015, Allegiance completed the acquisition of F&M Bancshares, Inc. (“F&M”) on January 1, 2015.
“We are pleased with our robust organic growth in the fourth quarter, which demonstrates the underlying strength of our business model,” said George Martinez, Allegiance’s Chairman and Chief Executive Officer. “We also delivered solid quarterly earnings driven by continuing growth in core loans, strong asset quality and a continuing focus on controlling costs.”
“2015 was a year of significant accomplishments for us, culminating with the completion of our initial public offering,” continued Martinez. “Proceeds received from the IPO were used to reduce the debt related to our F&M acquisition, and we ended 2015 with sufficient capital to continue our growth trajectory into 2016. We have, and will, continue to leverage the strength of our talented bankers as we continue to expand our presence in the Houston economy. While the Houston region has been impacted by the sharp decline in the price of crude oil, we view the current environment as an excellent opportunity for Allegiance to take advantage of the segment of the market that benefits from low energy prices.”
“Our super-community banking strategy offers a competitive advantage through our commitment to serving small to medium-sized business customers. Our unique strategy was designed to foster strong customer relationships while benefitting from a platform and scale that is competitive with larger local and regional banks. As part of our growth plan, we intend to continue to expand our market position primarily through organic growth, including the establishment of de novo branch locations.”
Results of operations for the three months ended December 31, 2015
Annualized returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2015 were 0.81%, 6.71% and 8.19%, respectively. Allegiance’s efficiency ratio for the three months ended December 31, 2015 decreased to 62.40% compared to 65.04% for the three months ended September 30, 2015 and from 71.56% for the three months ended December 31, 2014.
Net interest income before provision for loan losses for the three months ended December 31, 2015 increased 4.2% to $21.3 million, compared with $20.4 million during the three months ended September 30, 2015, primarily due to a $76.1 million or 4.3% increase in average interest-earning assets. Net interest income before provision for loan losses for the three months ended December 31, 2015 increased $8.7 million, or 68.8%, from $12.6 million for the three months ended December 31, 2014. This increase was primarily due to a 62.3% increase in average interest-earning assets as a result of the acquisition of F&M as well as organic growth within Allegiance’s loan portfolio. The net interest margin on a tax equivalent basis remained virtually flat from 4.61% for the three months ended September 30, 2015 to 4.60% for the three months ended December 31, 2015. Excluding the impact of acquisition accounting adjustments, the net interest margin for the three months ended December 31, 2015 would have been 4.47%, compared to 4.44% for the three months ended September 30, 2015. The net interest margin on a tax equivalent basis increased for the three months ended December 31, 2015 from 4.37% for the three months ended December 31, 2014.
On a linked quarter basis, noninterest income for the three months ended December 31, 2015 decreased $223 thousand, or 18.6%, primarily due to gains on the sale of loans recorded during the third quarter of 2015. Noninterest income for the three months ended December 31, 2015 increased $297 thousand, or 43.6%, to $978 thousand, compared with $681 thousand for the three months ended December 31, 2014. This increase was primarily due to increased fees and service charges resulting from the additional accounts acquired in the F&M acquisition.
Noninterest expense for the three months ended December 31, 2015 remained constant compared to the three months ended September 30, 2015, and increased $4.5 million, or 47.2%, to $13.9 million, compared with $9.4 million for the three months ended December 31, 2014. This increase was primarily due to additional noninterest expenses associated with operating a larger platform following the F&M acquisition.
Financial Condition
Total loans increased $64.6 million or 4.0% to $1.68 billion at December 31, 2015 from $1.62 billion at September 30, 2015 due to strong organic loan growth within Allegiance’s loan portfolio. During the three months ended December 31, 2015, core loans, which exclude the mortgage warehouse portfolio and loans held for sale, increased $70.6 million, but were partially offset by a decrease of $6.9 million in the mortgage warehouse portfolio, compared to the three months ended September 30, 2015. Total loans at December 31, 2015 increased $679.0 million, or 67.8%, compared with $1.0 billion at December 31, 2014, primarily due to loans acquired in the F&M acquisition as well as organic growth within Allegiance’s portfolio.
Average loans for the three months ended December 31, 2015 increased $58.6 million, or 3.7%, to $1.63 billion from $1.57 billion for the quarter ended September 30, 2015. Average loans for the three months ended December 31, 2015 increased $650.2 million, or 66.3%, from $980.9 million for the three months ended December 31, 2014.
Deposits increased $102.6 million, or 6.2%, to $1.76 billion at December 31, 2015 from $1.66 billion at September 30, 2015. Deposits at December 31, 2015 increased $625.5 million, or 55.2%, compared with $1.13 billion at December 31, 2014, primarily due to the deposits acquired in the F&M acquisition.
Average deposits for the three months ended December 31, 2015 increased $107.7 million, or 6.6%, to $1.74 billion, from $1.63 billion for the three months ended September 30, 2015. Average deposits for the three months ended December 31, 2015 increased $624.5 million, or 55.9%, compared with $1.12 billion for the three months ended December 31, 2014.
Asset Quality
Nonperforming assets totaled $6.2 million or 0.30% of total assets at December 31, 2015, compared with $6.3 million or 0.31% of total assets at September 30, 2015, and $3.2 million or 0.25% of total assets at December 31, 2014. The allowance for loan losses was 0.78% of total loans at December 31, 2015, 0.69% of total loans at September 30, 2015 and 0.82% of total loans at December 31, 2014.
The provision for loan losses for the three months ended December 31, 2015 was $2.2 million, or 0.53% (annualized) of average loans, compared with $1.5 million, or 0.39% (annualized) of average loans, for the three months ended September 30, 2015 and $500 thousand, or 0.20% (annualized) of average loans, for the three months ended December 31, 2014.
Net charge offs for the three months ended December 31, 2015 were $265 thousand, or 0.06% (annualized) of average loans, compared with $638 thousand, or 0.16% (annualized) of average loans, for the three months ended September 30, 2015.
GAAP Reconciliation of Non-GAAP Financial Measures
Allegiance’s management uses certain non-GAAP financial measures to evaluate its performance. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the tangible common equity to tangible assets ratio. Please refer to the GAAP Reconciliation and Management’s Explanation of non-GAAP Financial Measures at the end of this Earnings Release for a reconciliation of these non-GAAP financial measures.
Conference Call
As previously announced, Allegiance’s management team will host a conference call on Tuesday, January 26, 2016 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its fourth quarter 2015 earnings. Individuals and investment professionals may participate in the call by dialing (855) 717-7672. The conference ID number is 22569148.
Alternatively, a simultaneous webcast may be accessed via the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Upcoming Events.
Allegiance Bancshares, Inc.
As of December 31, 2015, Allegiance Bancshares Inc. is a $2.08 billion Houston, Texas based bank holding company. Through its wholly owned subsidiary, Allegiance Bank, Allegiance provides a diversified range of commercial banking services primarily to Houston metropolitan area-based small to medium-sized businesses and individual customers. Allegiance Bank operates 16 full-service banking locations in the Houston metropolitan area and two full-service banking locations in Central Texas. Visit www.allegiancebank.com for more information.
Forward Looking Statements
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release may contain forward-looking statements within the meaning of the securities laws that are based on various facts and derived utilizing important assumptions, present expectations, estimates and projections about Allegiance and its subsidiaries. These statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward looking statements include the foregoing words. Forward-looking statements include information concerning Allegiance’s future financial performance, business and growth strategy, projected plans and objectives, as well as projections of macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, many of which are outside of Allegiance’s control, which may cause actual results to differ materially from those expressed or implied by the forward-looking statements. These risks and uncertainties include but are not limited to whether Allegiance can: continue to develop and maintain new and existing customer and community relationships; successfully implement its growth strategy, including identifying suitable acquisition targets and integrating the businesses of acquired companies and banks; continue to sustain its current internal growth rate; provide quality and competitive products and services that appeal to its customers; continue to have access to debt and equity capital markets; and achieve its performance objectives. These and various other factors are discussed in Allegiance’s prospectus, filed with the SEC on October 8, 2015 pursuant to Rule 424(b)(4) under the Securities Act of 1933 relating to Allegiance’s Registration Statement on Form S-1, as amended (Registration No. 33-206536), that was declared effective by the SEC on October 7, 2015, and other reports and statements Allegiance has filed with the SEC. Copies of such filings are available for download free of charge from the Investor Relations section of the 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. Allegiance undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
| Allegiance Bancshares, Inc. | |||||||||||||||||||
| Financial Highlights | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Cash and cash equivalents | $ | 148,431 | $ | 144,590 | $ | 138,685 | $ | 252,558 | $ | 167,540 | |||||||||
| Available for sale securities | 165,097 | 154,546 | 151,662 | 96,910 | 84,962 | ||||||||||||||
| Total Loans (including loans held for sale) | 1,681,052 | 1,616,416 | 1,561,657 | 1,444,732 | 1,002,054 | ||||||||||||||
| Allowance for loan losses | (13,098 | ) | (11,204 | ) | (10,312 | ) | (8,940 | ) | (8,246 | ) | |||||||||
| Loans, net | 1,667,954 | 1,605,212 | 1,551,345 | 1,435,792 | 993,808 | ||||||||||||||
| Goodwill | 39,389 | 39,389 | 39,389 | 39,389 | 11,144 | ||||||||||||||
| Core deposit intangibles, net | 5,230 | 5,437 | 5,645 | 5,852 | 1,747 | ||||||||||||||
| Premises and equipment, net | 18,471 | 18,838 | 18,887 | 18,510 | 10,969 | ||||||||||||||
| Bank owned life insurance | 21,211 | 21,040 | 20,872 | 20,699 | - | ||||||||||||||
| Other assets | 18,796 | 23,298 | 18,671 | 15,176 | 9,838 | ||||||||||||||
| Total assets | $ | 2,084,579 | $ | 2,012,350 | $ | 1,945,156 | $ | 1,884,886 | $ | 1,280,008 | |||||||||
| Noninterest-bearing deposits | $ | 620,320 | $ | 560,773 | $ | 556,502 | $ | 554,624 | $ | 373,795 | |||||||||
| Interest-bearing deposits | 1,138,813 | 1,095,775 | 1,068,822 | 1,089,095 | 759,889 | ||||||||||||||
| Total deposits | 1,759,133 | 1,656,548 | 1,625,324 | 1,643,719 | 1,133,684 | ||||||||||||||
| Short-term borrowings | 50,000 | 115,000 | 75,000 | - | - | ||||||||||||||
| Subordinated debentures | 9,089 | 9,062 | 9,032 | 8,953 | - | ||||||||||||||
| Other borrowed funds | 569 | 28,069 | 28,069 | 28,069 | 10,069 | ||||||||||||||
| Other liabilities | 7,298 | 7,628 | 5,901 | 5,121 | 4,477 | ||||||||||||||
| Total liabilities | 1,826,089 | 1,816,307 | 1,743,326 | 1,685,862 | 1,148,230 | ||||||||||||||
| Preferred equity | - | - | 11,550 | 11,550 | - | ||||||||||||||
| Common equity | 258,490 | 196,043 | 190,280 | 187,474 | 131,778 | ||||||||||||||
| Stockholders' equity | 258,490 | 196,043 | 201,830 | 199,024 | 131,778 | ||||||||||||||
| Total liabilities and equity | $ | 2,084,579 | $ | 2,012,350 | $ | 1,945,156 | $ | 1,884,886 | $ | 1,280,008 | |||||||||
| Allegiance Bancshares, Inc. | |||||||||||||||||||||||||||
| Financial Highlights | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | December 31 | December 31 | |||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||
| INTEREST INCOME: | |||||||||||||||||||||||||||
| Loans, including fees | $ | 22,431 | $ | 21,627 | $ | 21,079 | $ | 20,306 | $ | 13,534 | $ | 85,443 | $ | 50,243 | |||||||||||||
| Securities | 989 | 975 | 721 | 439 | 450 | 3,124 | 1,851 | ||||||||||||||||||||
| Deposits in other financial institutions | 72 | 43 | 50 | 74 | 68 | 239 | 311 | ||||||||||||||||||||
| Total interest income | 23,492 | 22,645 | 21,850 | 20,819 | 14,052 | 88,806 | 52,405 | ||||||||||||||||||||
| INTEREST EXPENSE: | |||||||||||||||||||||||||||
| Demand, money market and savings deposits | 555 | 508 | 482 | 456 | 338 | 2,001 | 1,261 | ||||||||||||||||||||
| Certificates and other time deposits | 1,494 | 1,324 | 1,254 | 1,200 | 1,046 | 5,272 | 4,081 | ||||||||||||||||||||
| Short-term borrowings | 33 | 47 | 2 | - | - | 82 | - | ||||||||||||||||||||
| Subordinated debt | 139 | 114 | 162 | 163 | - | 578 | - | ||||||||||||||||||||
| Other borrowed funds | 16 | 245 | 216 | 230 | 78 | 707 | 229 | ||||||||||||||||||||
| Total interest expense | 2,237 | 2,238 | 2,116 | 2,049 | 1,462 | 8,640 | 5,571 | ||||||||||||||||||||
| NET INTEREST INCOME | 21,255 | 20,407 | 19,734 | 18,770 | 12,590 | 80,166 | 46,834 | ||||||||||||||||||||
| Provision for loan losses | 2,159 | 1,530 | 1,420 | 683 | 500 | 5,792 | 2,150 | ||||||||||||||||||||
| Net interest income after provision for loan losses | 19,096 | 18,877 | 18,314 | 18,087 | 12,090 | 74,374 | 44,684 | ||||||||||||||||||||
| NONINTEREST INCOME: | |||||||||||||||||||||||||||
| Nonsufficient funds fees | 191 | 179 | 168 | 165 | 120 | 703 | 455 | ||||||||||||||||||||
| Service charges on deposit accounts | 166 | 163 | 176 | 175 | 112 | 680 | 490 | ||||||||||||||||||||
| Gains (losses) on sales of securities | (37 | ) | - | - | - | 82 | (37 | ) | 82 | ||||||||||||||||||
| Gains (losses) on sales of other real estate | - | 1 | - | (6 | ) | - | (5 | ) | 188 | ||||||||||||||||||
| Gains on sales of loans | - | 235 | - | - | - | 235 | - | ||||||||||||||||||||
| Other | 658 | 623 | 603 | 532 | 367 | 2,416 | 1,392 | ||||||||||||||||||||
| Total noninterest income | 978 | 1,201 | 947 | 866 | 681 | 3,992 | 2,607 | ||||||||||||||||||||
| NONINTEREST EXPENSE: | |||||||||||||||||||||||||||
| Salaries and employee benefits | 8,905 | 8,996 | 8,481 | 8,942 | 5,682 | 35,324 | 20,179 | ||||||||||||||||||||
| Net occupancy and equipment | 1,179 | 1,289 | 1,274 | 1,084 | 847 | 4,826 | 3,316 | ||||||||||||||||||||
| Data processing and software amortization | 750 | 841 | 827 | 626 | 428 | 3,044 | 1,658 | ||||||||||||||||||||
| Professional fees | 451 | 343 | 397 | 480 | 794 | 1,671 | 2,294 | ||||||||||||||||||||
| Regulatory assessments and FDIC insurance | 356 | 296 | 320 | 374 | 211 | 1,346 | 848 | ||||||||||||||||||||
| Core deposit intangibles amortization | 208 | 207 | 207 | 208 | 74 | 830 | 298 | ||||||||||||||||||||
| Depreciation | 424 | 414 | 409 | 367 | 295 | 1,614 | 1,084 | ||||||||||||||||||||
| Communications | 298 | 300 | 358 | 334 | 224 | 1,290 | 684 | ||||||||||||||||||||
| Advertising | 271 | 188 | 184 | 138 | 207 | 781 | 601 | ||||||||||||||||||||
| Other | 1,054 | 1,027 | 965 | 1,033 | 676 | 4,079 | 2,496 | ||||||||||||||||||||
| Total noninterest expense | 13,896 | 13,901 | 13,422 | 13,586 | 9,438 | 54,805 | 33,458 | ||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 6,178 | 6,177 | 5,839 | 5,367 | 3,333 | 23,561 | 13,833 | ||||||||||||||||||||
| Provision for income taxes | 1,966 | 1,957 | 1,956 | 1,896 | 1,033 | 7,775 | 4,828 | ||||||||||||||||||||
| NET INCOME | 4,212 | 4,220 | 3,883 | 3,471 | 2,300 | 15,786 | 9,005 | ||||||||||||||||||||
| Preferred stock dividends | - | 173 | 260 | 126 | - | 559 | - | ||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO COMMON | |||||||||||||||||||||||||||
| STOCKHOLDERS | $ | 4,212 | $ | 4,047 | $ | 3,623 | $ | 3,345 | $ | 2,300 | $ | 15,227 | $ | 9,005 | |||||||||||||
| Allegiance Bancshares, Inc. | |||||||||||||||||||||||||||
| Financial Highlights | |||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | December 31 | December 31 | |||||||||||||||||||||
| (Dollars and share amounts in thousands) | |||||||||||||||||||||||||||
| Net income | $ | 4,212 | $ | 4,220 | $ | 3,883 | $ | 3,471 | $ | 2,300 | $ | 15,786 | $ | 9,005 | |||||||||||||
| Net income attributable to common stockholders | $ | 4,212 | $ | 4,047 | $ | 3,623 | $ | 3,345 | $ | 2,300 | $ | 15,227 | $ | 9,005 | |||||||||||||
| Earnings per common share, basic | $ | 0.34 | $ | 0.41 | $ | 0.37 | $ | 0.34 | $ | 0.33 | $ | 1.45 | $ | 1.29 | |||||||||||||
| Earnings per common share, diluted | $ | 0.33 | $ | 0.40 | $ | 0.36 | $ | 0.33 | $ | 0.32 | $ | 1.43 | $ | 1.26 | |||||||||||||
| Return on average assets (A) | 0.81 | % | 0.85 | % | 0.84 | % | 0.77 | % | 0.73 | % | 0.81 | % | 0.75 | % | |||||||||||||
| Return on average common equity (A) | 6.71 | % | 8.27 | % | 8.20 | % | 7.56 | % | 7.56 | % | 7.43 | % | 7.73 | % | |||||||||||||
| Return on average tangible common equity (A) (B) | 8.19 | % | 10.77 | % | 10.04 | % | 9.62 | % | 8.46 | % | 9.52 | % | 8.70 | % | |||||||||||||
| Tax equivalent net interest margin (C) | 4.60 | % | 4.61 | % | 4.79 | % | 4.72 | % | 4.37 | % | 4.68 | % | 4.31 | % | |||||||||||||
| Efficiency ratio(D) | 62.40 | % | 65.04 | % | 64.90 | % | 69.19 | % | 71.56 | % | 65.27 | % | 67.79 | % | |||||||||||||
| Liquidity and Capital Ratios | |||||||||||||||||||||||||||
| Equity to assets | 12.40 | % | 9.74 | % | 10.38 | % | 10.56 | % | 10.30 | % | 12.40 | % | 10.30 | % | |||||||||||||
| Common equity Tier 1 capital | 11.71 | % | 8.61 | % | 8.68 | % | 8.98 | % | N/A | 11.71 | % | N/A | |||||||||||||||
| Tier 1 risk-based capital | 12.20 | % | 9.12 | % | 9.88 | % | 10.25 | % | 11.96 | % | 12.20 | % | 11.96 | % | |||||||||||||
| Total risk-based capital | 12.92 | % | 9.75 | % | 10.48 | % | 10.80 | % | 12.80 | % | 12.92 | % | 12.80 | % | |||||||||||||
| Tier 1 leverage capital | 11.02 | % | 8.37 | % | 9.34 | % | 9.22 | % | 9.55 | % | 11.02 | % | 9.55 | % | |||||||||||||
| Tangible common equity to tangible assets(B) | 10.48 | % | 7.69 | % | 7.64 | % | 7.73 | % | 9.38 | % | 10.48 | % | 9.38 | % | |||||||||||||
| Other Data | |||||||||||||||||||||||||||
| Weighted average shares: | |||||||||||||||||||||||||||
| Basic | 12,390 | 9,823 | 9,825 | 9,823 | 6,995 | 10,470 | 6,978 | ||||||||||||||||||||
| Diluted | 12,589 | 10,003 | 10,004 | 9,999 | 7,169 | 10,654 | 7,142 | ||||||||||||||||||||
| Period end shares outstanding | 12,813 | 9,823 | 9,823 | 9,824 | 7,477 | 12,813 | 7,477 | ||||||||||||||||||||
| Book value per common share | $ | 20.17 | $ | 19.96 | $ | 19.37 | $ | 19.08 | $ | 17.62 | $ | 20.17 | $ | 17.62 | |||||||||||||
| Tangible book value per common share(B) | $ | 16.69 | $ | 15.39 | $ | 14.79 | $ | 14.48 | $ | 15.90 | $ | 16.69 | $ | 15.90 | |||||||||||||
| (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 at the end of this Earnings Release. | |||||||||||||||||||||||||||
| (C) Net interest margin represents net interest income divided by average interest-earning assets. | |||||||||||||||||||||||||||
| (D) Represents noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of assets and securities. Additionally, taxes and provision for loan losses are not part of this calculation. | |||||||||||||||||||||||||||
| Allegiance Bancshares, Inc. | |||||||||||||||||||||||||||||||||||
| Financial Highlights | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||||
| Average Balance | Interest Earned/ Interest Paid | Average Yield/ Rate | Average Balance | Interest Earned/ Interest Paid | Average Yield/ Rate | Average Balance | Interest Earned/ Interest Paid | Average Yield/ Rate | |||||||||||||||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||||||||||||||
| Loans | $ | 1,631,068 | $ | 22,431 | 5.46 | % | $ | 1,572,441 | $ | 21,627 | 5.46 | % | $ | 980,853 | $ | 13,534 | 5.47 | % | |||||||||||||||||
| Securities | 161,245 | 989 | 2.43 | % | 162,308 | 975 | 2.38 | % | 89,196 | 450 | 2.00 | % | |||||||||||||||||||||||
| Deposits in other financial institutions | 72,262 | 72 | 0.40 | % | 53,759 | 43 | 0.31 | % | 79,087 | 68 | 0.34 | % | |||||||||||||||||||||||
| Total interest-earning assets | 1,864,575 | $ | 23,492 | 5.00 | % | 1,788,508 | $ | 22,645 | 5.02 | % | 1,149,136 | $ | 14,052 | 4.85 | % | ||||||||||||||||||||
| Allowance for loan losses | (11,598 | ) | (10,618 | ) | (7,983 | ) | |||||||||||||||||||||||||||||
| Noninterest-earning assets | 222,624 | 201,952 | 110,766 | ||||||||||||||||||||||||||||||||
| Total assets | $ | 2,075,601 | $ | 1,979,842 | $ | 1,251,919 | |||||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 95,696 | $ | 43 | 0.18 | % | $ | 97,488 | $ | 40 | 0.16 | % | $ | 79,674 | $ | 30 | 0.15 | % | |||||||||||||||||
| Money market and savings deposits | 456,867 | 512 | 0.44 | % | 432,654 | 468 | 0.43 | % | 291,621 | 308 | 0.42 | % | |||||||||||||||||||||||
| Certificates and other time deposits | 591,403 | 1,494 | 1.00 | % | 547,884 | 1,324 | 0.96 | % | 392,992 | 1,046 | 1.06 | % | |||||||||||||||||||||||
| Short-term borrowings | 63,587 | 33 | 0.20 | % | 106,533 | 47 | 0.17 | % | - | - | 0.00 | % | |||||||||||||||||||||||
| Subordinated debt | 9,072 | 139 | 6.06 | % | 9,060 | 114 | 5.01 | % | - | - | 0.00 | % | |||||||||||||||||||||||
| Other borrowed funds | 5,053 | 16 | 1.24 | % | 28,069 | 245 | 3.46 | % | 10,008 | 78 | 3.10 | % | |||||||||||||||||||||||
| Total interest-bearing liabilities | 1,221,678 | $ | 2,237 | 0.73 | % | 1,221,688 | $ | 2,238 | 0.73 | % | 774,295 | $ | 1,462 | 0.75 | % | ||||||||||||||||||||
| Noninterest-Bearing liabilities: | |||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 596,854 | 555,060 | 352,024 | ||||||||||||||||||||||||||||||||
| Other liabilities | 8,144 | 7,292 | 4,894 | ||||||||||||||||||||||||||||||||
| Total liabilities | 1,826,676 | 1,784,040 | 1,131,213 | ||||||||||||||||||||||||||||||||
| Stockholders' equity | 248,925 | 195,802 | 120,706 | ||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,075,601 | $ | 1,979,842 | $ | 1,251,919 | |||||||||||||||||||||||||||||
| Net interest rate spread | 4.27 | % | 4.29 | % | 4.10 | % | |||||||||||||||||||||||||||||
| Net interest income and margin | $ | 21,255 | 4.52 | % | $ | 20,407 | 4.53 | % | $ | 12,590 | 4.35 | % | |||||||||||||||||||||||
| Net interest income and margin (tax equivalent) | $ | 21,623 | 4.60 | % | $ | 20,770 | 4.61 | % | $ | 12,651 | 4.37 | % | |||||||||||||||||||||||
| Allegiance Bancshares, Inc. | ||||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Year Ended | ||||||||||||||||||||||||
| December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||
| Average Balance | Interest Earned/ Interest Paid | Average Yield/ Rate | Average Balance | Interest Earned/ Interest Paid | Average Yield/ Rate | |||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||
| Loans | $ | 1,525,325 | $ | 85,443 | 5.60 | % | $ | 917,218 | $ | 50,243 | 5.48 | % | ||||||||||||
| Securities | 136,277 | 3,124 | 2.29 | % | 91,318 | 1,851 | 2.03 | % | ||||||||||||||||
| Deposits in other financial institutions | 73,995 | 239 | 0.32 | % | 81,839 | 311 | 0.38 | % | ||||||||||||||||
| Total interest-earning assets | 1,735,597 | $ | 88,806 | 5.12 | % | 1,090,375 | $ | 52,405 | 4.81 | % | ||||||||||||||
| Allowance for loan losses | (10,004 | ) | (7,276 | ) | ||||||||||||||||||||
| Noninterest-earning assets | 211,419 | 109,852 | ||||||||||||||||||||||
| Total assets | $ | 1,937,012 | $ | 1,192,951 | ||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 100,139 | $ | 163 | 0.16 | % | $ | 69,139 | $ | 134 | 0.19 | % | ||||||||||||
| Money market and savings deposits | 429,153 | 1,838 | 0.43 | % | 263,277 | 1,127 | 0.43 | % | ||||||||||||||||
| Certificates and other time deposits | 559,247 | 5,272 | 0.94 | % | 404,006 | 4,081 | 1.01 | % | ||||||||||||||||
| Short-term borrowings | 43,989 | 82 | 0.19 | % | - | - | 0.00 | % | ||||||||||||||||
| Subordinated debt | 9,004 | 578 | 6.42 | % | - | - | 0.00 | % | ||||||||||||||||
| Other borrowed funds | 22,354 | 707 | 3.16 | % | 7,537 | 229 | 3.04 | % | ||||||||||||||||
| Total interest-bearing liabilities | 1,163,886 | $ | 8,640 | 0.74 | % | 743,959 | $ | 5,571 | 0.75 | % | ||||||||||||||
| Noninterest-Bearing liabilities: | ||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 554,704 | 328,743 | ||||||||||||||||||||||
| Other liabilities | 7,316 | 3,789 | ||||||||||||||||||||||
| Total liabilities | 1,725,906 | 1,076,491 | ||||||||||||||||||||||
| Stockholders' equity | 211,106 | 116,460 | ||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 1,937,012 | $ | 1,192,951 | ||||||||||||||||||||
| Net interest rate spread | 4.38 | % | 4.06 | % | ||||||||||||||||||||
| Net interest income and margin | $ | 80,166 | 4.62 | % | $ | 46,834 | 4.30 | % | ||||||||||||||||
| Net interest income and margin (tax equivalent) | $ | 81,156 | 4.68 | % | $ | 47,049 | 4.31 | % | ||||||||||||||||
| Allegiance Bancshares, Inc. | |||||||||||||||||||
| Financial Highlights | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| 2015 | 2014 | ||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | |||||||||||||||
| (Dollars in thousands) | |||||||||||||||||||
| Period-end Loan Portfolio: | |||||||||||||||||||
| Loans held for sale | $ | 27,887 | $ | 27,004 | $ | 25,629 | $ | 33,409 | $ | - | |||||||||
| Commercial and industrial | 383,044 | 367,341 | 346,703 | 325,598 | 242,034 | ||||||||||||||
| Mortgage warehouse | 59,071 | 65,928 | 81,255 | 36,912 | 28,329 | ||||||||||||||
| Real Estate: | |||||||||||||||||||
| Commercial real estate (including multi-family residential) | 745,595 | 710,857 | 678,979 | 640,391 | 429,986 | ||||||||||||||
| Commercial real estate construction and land development | 154,646 | 151,369 | 140,437 | 135,760 | 85,484 | ||||||||||||||
| 1-4 family residential (including home equity) | 205,200 | 185,473 | 178,635 | 174,070 | 135,127 | ||||||||||||||
| Residential construction | 93,848 | 95,212 | 94,167 | 86,412 | 72,402 | ||||||||||||||
| Consumer and other | 11,761 | 13,232 | 15,852 | 12,180 | 8,692 | ||||||||||||||
| Total loans | $ | 1,681,052 | $ | 1,616,416 | $ | 1,561,657 | $ | 1,444,732 | $ | 1,002,054 | |||||||||
| Asset Quality: | |||||||||||||||||||
| Nonaccrual loans | $ | 6,035 | $ | 6,185 | $ | 5,722 | $ | 6,852 | $ | 3,184 | |||||||||
| Accruing loans 90 or more | |||||||||||||||||||
| days past due | - | - | - | - | - | ||||||||||||||
| Total nonperforming loans | 6,035 | 6,185 | 5,722 | 6,852 | 3,184 | ||||||||||||||
| Other real estate | - | - | 21 | - | - | ||||||||||||||
| Other repossessed assets | 131 | 131 | 491 | - | - | ||||||||||||||
| Total nonperforming assets | $ | 6,166 | $ | 6,316 | $ | 6,234 | $ | 6,852 | $ | 3,184 | |||||||||
| Net charge-offs (recoveries) | $ | 265 | $ | 638 | $ | 48 | $ | (11 | ) | $ | (6 | ) | |||||||
| Nonaccrual loans: | |||||||||||||||||||
| Loans held for sale | $ | 209 | $ | 498 | $ | 1,130 | $ | 782 | $ | - | |||||||||
| Commercial and industrial | 2,664 | 3,477 | 3,186 | 4,204 | 1,527 | ||||||||||||||
| Warehouse lending | - | - | - | - | - | ||||||||||||||
| Real Estate: | |||||||||||||||||||
| Commercial real estate (including multi-family residential) | 2,857 | 1,783 | 974 | 1,293 | 1,653 | ||||||||||||||
| Commercial real estate construction and land development | - | - | - | 246 | - | ||||||||||||||
| 1-4 family residential (including home equity) | 239 | 341 | 343 | 296 | - | ||||||||||||||
| Residential construction | - | - | - | - | - | ||||||||||||||
| Consumer and other | 66 | 86 | 89 | 31 | 4 | ||||||||||||||
| Total nonaccrual loans | $ | 6,035 | $ | 6,185 | $ | 5,722 | $ | 6,852 | $ | 3,184 | |||||||||
| Asset Quality Ratios: | |||||||||||||||||||
| Nonperforming assets to total assets | 0.30 | % | 0.31 | % | 0.32 | % | 0.36 | % | 0.25 | % | |||||||||
| Nonperforming loans to total loans | 0.36 | % | 0.38 | % | 0.37 | % | 0.47 | % | 0.32 | % | |||||||||
| Allowance for loan losses to nonperforming loans | 217.03 | % | 181.15 | % | 180.22 | % | 130.47 | % | 258.98 | % | |||||||||
| Allowance for loan losses to total loans | 0.78 | % | 0.69 | % | 0.66 | % | 0.62 | % | 0.82 | % | |||||||||
| Provision for loan losses to average loans (annualized) | 0.53 | % | 0.39 | % | 0.39 | % | 0.20 | % | 0.20 | % | |||||||||
| Net charge-offs to average loans (annualized) | 0.06 | % | 0.16 | % | 0.01 | % | 0.00 | % | 0.00 | % | |||||||||
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. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the tangible common equity to tangible assets ratio 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. Allegiance believes these non-GAAP financial measures provide information useful to management and investors that is supplementary to our financial condition and results of operations computed in accordance with GAAP. 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 Ended | |||||||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
| December 31 | September 30 | June 30 | March 31 | December 31 | December 31 | December 31 | ||||||||||||||||||||||
| (Dollars and share amounts in thousands) | ||||||||||||||||||||||||||||
| Total Stockholders' equity | $ | 258,490 | $ | 196,043 | $ | 201,830 | $ | 199,024 | $ | 131,778 | $ | 258,490 | $ | 131,778 | ||||||||||||||
| Less: Goodwill and core deposit intangibles, net | 44,619 | 44,826 | 45,034 | 45,241 | 12,891 | 44,619 | 12,891 | |||||||||||||||||||||
| Tangible stockholders’ equity | $ | 213,871 | $ | 151,217 | $ | 156,796 | $ | 153,783 | $ | 118,887 | $ | 213,871 | $ | 118,887 | ||||||||||||||
| Less: Preferred Stock | - | - | 11,550 | 11,550 | - | - | - | |||||||||||||||||||||
| Tangible common stockholders’ equity | $ | 213,871 | $ | 151,217 | $ | 145,246 | $ | 142,233 | $ | 118,887 | $ | 213,871 | $ | 118,887 | ||||||||||||||
| Shares outstanding at end of period | 12,813 | 9,823 | 9,823 | 9,824 | 7,477 | 12,813 | 7,477 | |||||||||||||||||||||
| Tangible book value per common share | $ | 16.69 | $ | 15.39 | $ | 14.79 | $ | 14.48 | $ | 15.90 | $ | 16.69 | $ | 15.90 | ||||||||||||||
| Net income attributable to common stockholders | $ | 4,212 | $ | 4,047 | $ | 3,623 | $ | 3,345 | $ | 2,300 | $ | 15,227 | $ | 9,005 | ||||||||||||||
| Average common stockholders equity | 248,925 | 194,045 | 189,907 | 186,294 | 120,706 | 204,935 | 116,460 | |||||||||||||||||||||
| Less: Average goodwill and core deposit intangibles, net | 44,886 | 44,929 | 45,150 | 45,260 | 12,927 | 45,055 | 13,007 | |||||||||||||||||||||
| Average tangible common stockholders’ equity | $ | 204,039 | $ | 149,116 | $ | 144,757 | $ | 141,034 | $ | 107,779 | $ | 159,880 | $ | 103,453 | ||||||||||||||
| Return on average tangible common equity | 8.19 | % | 10.77 | % | 10.04 | % | 9.62 | % | 8.46 | % | 9.52 | % | 8.70 | % | ||||||||||||||
| Total assets | $ | 2,084,579 | $ | 2,012,350 | $ | 1,945,156 | $ | 1,884,886 | $ | 1,280,008 | $ | 2,084,579 | $ | 1,280,008 | ||||||||||||||
| Less: Goodwill and core deposit intangibles, net | 44,619 | 44,826 | 45,034 | 45,241 | 12,891 | 44,619 | 12,891 | |||||||||||||||||||||
| Tangible assets | $ | 2,039,960 | $ | 1,967,524 | $ | 1,900,122 | $ | 1,839,645 | $ | 1,267,117 | $ | 2,039,960 | $ | 1,267,117 | ||||||||||||||
| Tangible common equity to tangible assets | 10.48 | % | 7.69 | % | 7.64 | % | 7.73 | % | 9.38 | % | 10.48 | % | 9.38 | % | ||||||||||||||