- Core loans increased 15.4% year over year and 2.9% for the second quarter 2016 compared to the first quarter 2016
- Strong asset quality as evidenced by annualized net charge-offs of 0.11% and a nonperforming assets to total assets ratio of 0.37% for the second quarter 2016
HOUSTON, July 26, 2016 (GLOBE NEWSWIRE) -- Allegiance Bancshares, Inc. (NASDAQ:ABTX), the holding company of Allegiance Bank (collectively, “Allegiance”), reported net income attributable to common stockholders of $5.3 million in the second quarter 2016, a 45.0% increase over the second quarter 2015 and a 17.3% decrease compared to the first quarter 2016. Net income per diluted common share increased 11.1% to $0.40 in the second quarter 2016 compared to net income per diluted common share of $0.36 for the second quarter 2015 and decreased 18.4% compared to $0.49 for the first quarter 2016. Excluding the after tax gain of $1.3 million on the sale of the two Central Texas branch locations during the first quarter 2016, net income attributable to common stockholders would have been $5.0 million and net income per diluted common share would have been $0.39 for the first quarter 2016.
“Allegiance Bank delivered another strong quarter,” said George Martinez, Allegiance’s Chairman and Chief Executive Officer. “We benefited from continued growth in our loan portfolio during the quarter, and our asset quality remains very high. We achieved solid gains across the board when compared to last year’s second quarter.”
“Allegiance Bank’s credit quality and our outlook remain strong. Our second quarter performance reflects our emphasis on core loans and demonstrates the growth potential of the Bank. Most importantly, it underscores our ability to prudently grow our loan portfolio and high-quality asset base and increase returns to our shareholders. The Bank’s growing pool of talented bankers intends to maintain this momentum by remaining focused on our super-community banking strategy across Houston,” continued Martinez.
Second Quarter 2016 Results
Second quarter 2016 annualized returns on average assets, average common equity and average tangible common equity were 0.91%, 7.79% and 9.30%, respectively, compared to annualized returns on average assets, average common equity and average tangible common equity of 0.84%, 8.20% and 10.04%, respectively, for the second quarter 2015. Annualized returns on average assets, average common equity and average tangible common equity for the first quarter 2016 were 1.19%, 9.70% and 11.67%, respectively. Excluding the gain on the sale of the two Central Texas branch locations, the annualized returns on average assets, average common equity and average tangible common equity for the first quarter 2016 would have been 0.94%, 7.67% and 9.22%, respectively.
Allegiance’s efficiency ratio in the second quarter 2016 decreased to 60.11% from 64.90% in the second quarter 2015 and from 63.80% in the first quarter 2016.
Net interest income before provision for loan losses in the second quarter 2016 increased $2.2 million, or 11.2%, to $21.9 million from $19.7 million for the second quarter 2015, as a result of a 25.3% increase in average interest-earning assets primarily due to organic loan growth and the increase in the securities portfolio. Net interest income before provision for loan losses in the second quarter 2016 increased $865 thousand, or 4.1%, from $21.1 million in the first quarter 2016. The net interest margin on a tax equivalent basis decreased 47 basis points to 4.32% for the second quarter 2016 from 4.79% for the second quarter 2015, and decreased 13 basis points from 4.45% for the first quarter 2016. Excluding the impact of acquisition accounting adjustments, the net interest margin in the second quarter 2016 would have been 4.24%, compared to 4.49% and 4.35% in the second quarter 2015 and first quarter 2016, respectively.
Noninterest income in the second quarter 2016 was $1.2 million, an increase of $265 thousand, or 28.0%, compared to $947 thousand in the second quarter 2015 and a decrease of $2.1 million, or 63.3%, compared to $3.3 million in the first quarter 2016. The first quarter 2016 included the gain on the sale of two Central Texas branch locations.
Noninterest expense in the second quarter 2016 increased $501 thousand, or 3.7%, to $13.9 million from $13.4 million in the second quarter 2015, and decreased $330 thousand, or 2.3%, from $14.3 million in the first quarter 2016.
Six Months Ended June 30, 2016 Results
For the six months ended June 30, 2016 annualized returns on average assets, average common equity and average tangible common equity were 1.04%, 8.74% and 10.46%, respectively, compared to annualized returns on average assets, average common equity and average tangible common equity of 0.80%, 7.47% and 9.83%, respectively, for the six months ended June 30, 2015. Excluding the gain on the sale of the two Central Texas branch locations, the annualized returns on average assets, average common equity and average tangible common equity for the six months ended June 30, 2016 would have been 0.92%, 7.73% and 9.26%, respectively.
Allegiance’s efficiency ratio for the six months ended June 30, 2016 decreased to 61.93% from 66.99% for the six months ended June 30, 2015.
Net interest income before provision for loan losses for the six months ended June 30, 2016 increased $4.5 million, or 11.8%, to $43.0 million from $38.5 million for the six months ended June 30, 2015, as a result of a 22.7% increase in average interest-earning assets primarily due to organic growth within the loan portfolio and the increase in the securities portfolio. The net interest margin on a tax equivalent basis decreased 38 basis points to 4.38% for the six months ended June 30, 2016 from 4.76% for the six months ended June 30, 2015. Excluding the impact of acquisition accounting adjustments, the net interest margin for the six months ended June 30, 2016 would have been 4.29%, compared to 4.43% for the six months ended June 30, 2015.
Noninterest income for the six months ended June 30, 2016 was $4.5 million, an increase of $2.7 million, or 149.1%, when compared to $1.8 million for the six months ended June 30, 2015. The first quarter 2016 included the gain on the sale of two Central Texas branch locations. Noninterest expense for the six months ended June 30, 2016 increased $1.2 million, or 4.3%, to $28.2 million from $27.0 million for the six months ended June 30, 2015.
Financial Condition
Total loans at June 30, 2016 increased $192.0 million, or 12.3%, to $1.75 billion compared to $1.56 billion at June 30, 2015 and increased $36.2 million, or 2.1%, compared to $1.72 billion at March 31, 2016. These increases were due to strong organic loan growth within Allegiance Bank’s loan portfolio. Second quarter 2016 core loans, excluding the mortgage warehouse portfolio and loans held for sale, increased $223.4 million, or 15.4%, to $1.68 billion from $1.45 billion in the second quarter 2015 and increased $46.8 million, or 2.9%, from $1.63 billion in the first quarter 2016.
Deposits at June 30, 2016 increased $218.0 million, or 13.4%, to $1.84 billion compared to $1.63 billion at June 30, 2015 and increased slightly compared to deposits at March 31, 2016.
Asset Quality
Nonperforming assets totaled $8.6 million, or 0.37% of total assets, at June 30, 2016, compared to $6.2 million, or 0.32% of total assets, at June 30, 2015, and $8.5 million, or 0.38% of total assets, at March 31, 2016. The allowance for loan losses was 0.85% of total loans at June 30, 2016, 0.66% of total loans at June 30, 2015, and 0.80% of total loans at March 31, 2016.
The provision for loan losses in the second quarter 2016 was $1.6 million, or 0.38% (annualized) of average loans, compared to $1.4 million, or 0.39% (annualized) of average loans, in the second quarter 2015, and $710 thousand, or 0.17% (annualized) of average loans, in the first quarter 2016. The provision for loan losses for the six months ended June 30, 2016 was $2.4 million, or 0.28% (annualized) of average loans, compared to $2.1 million, or 0.29% (annualized) of average loans for the six months ended June 30, 2015.
Second quarter 2016 net charge-offs were $485 thousand, or 0.11% (annualized) of average loans, compared to $48 thousand, or 0.01% (annualized) of average loans, in the second quarter 2015, and $51 thousand, or 0.01% (annualized) of average loans, in the first quarter 2016. Net charge-offs for the six months ended June 30, 2016 were $536 thousand, or 0.06% (annualized) of average loans, compared to $37 thousand, or 0.01% (annualized) of average loans for the six months ended June 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 ratio of tangible common equity to tangible assets. 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 Tuesday, July 26, 2016 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its second quarter 2016 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 31469081. 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.
Allegiance Bancshares, Inc. is a $2.37 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 Houston metropolitan area-based small to medium-sized businesses and individual customers. Allegiance’s unique super-community banking strategy was designed to foster strong customer relationships while benefitting from a platform and scale that is competitive with larger local and regional banks. Allegiance Bank operates 16 full-service banking locations in 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 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. 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 risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 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. 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) | ||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Cash and cash equivalents | $ | 210,863 | $ | 183,290 | $ | 148,431 | $ | 144,590 | $ | 138,685 | ||||||||||
| Available for sale securities | 303,463 | 215,401 | 165,097 | 154,546 | 151,662 | |||||||||||||||
| Total Loans (including loans held for sale) | 1,753,683 | 1,717,448 | 1,681,052 | 1,616,416 | 1,561,657 | |||||||||||||||
| Allowance for loan losses | (14,917 | ) | (13,757 | ) | (13,098 | ) | (11,204 | ) | (10,312 | ) | ||||||||||
| Loans, net | 1,738,766 | 1,703,691 | 1,667,954 | 1,605,212 | 1,551,345 | |||||||||||||||
| Goodwill | 39,389 | 39,389 | 39,389 | 39,389 | 39,389 | |||||||||||||||
| Core deposit intangibles, net | 4,446 | 4,641 | 5,230 | 5,437 | 5,645 | |||||||||||||||
| Premises and equipment, net | 17,821 | 18,121 | 18,471 | 18,838 | 18,887 | |||||||||||||||
| Other real estate owned | 1,397 | 1,397 | - | - | - | |||||||||||||||
| Bank owned life insurance | 21,530 | 21,377 | 21,211 | 21,040 | 20,872 | |||||||||||||||
| Other assets | 29,906 | 23,400 | 18,796 | 23,298 | 18,671 | |||||||||||||||
| Total assets | $ | 2,367,581 | $ | 2,210,707 | $ | 2,084,579 | $ | 2,012,350 | $ | 1,945,156 | ||||||||||
| Noninterest-bearing deposits | $ | 630,689 | $ | 684,245 | $ | 620,320 | $ | 560,773 | $ | 556,502 | ||||||||||
| Interest-bearing deposits | 1,212,650 | 1,158,409 | 1,138,813 | 1,095,775 | 1,068,822 | |||||||||||||||
| Total deposits | 1,843,339 | 1,842,654 | 1,759,133 | 1,656,548 | 1,625,324 | |||||||||||||||
| Short-term borrowings | 30,000 | 85,000 | 50,000 | 115,000 | 75,000 | |||||||||||||||
| Other borrowed funds | 200,569 | 569 | 569 | 28,069 | 28,069 | |||||||||||||||
| Subordinated debentures | 9,142 | 9,115 | 9,089 | 9,062 | 9,032 | |||||||||||||||
| Other liabilities | 8,280 | 7,076 | 7,298 | 7,628 | 5,901 | |||||||||||||||
| Total liabilities | 2,091,330 | 1,944,414 | 1,826,089 | 1,816,307 | 1,743,326 | |||||||||||||||
| Preferred equity | - | - | - | - | 11,550 | |||||||||||||||
| Common equity | 276,251 | 266,293 | 258,490 | 196,043 | 190,280 | |||||||||||||||
| Stockholders' equity | 276,251 | 266,293 | 258,490 | 196,043 | 201,830 | |||||||||||||||
| Total liabilities and equity | $ | 2,367,581 | $ | 2,210,707 | $ | 2,084,579 | $ | 2,012,350 | $ | 1,945,156 | ||||||||||
| Allegiance Bancshares, Inc. | ||||||||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
| June 30 | March 31 | December 31 | September 30 | June 30 | June 30 | June 30 | ||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||
| INTEREST INCOME: | ||||||||||||||||||||||||||||
| Loans, including fees | $ | 22,839 | $ | 22,228 | $ | 22,431 | $ | 21,627 | $ | 21,079 | $ | 45,067 | $ | 41,385 | ||||||||||||||
| Securities | 1,538 | 1,081 | 989 | 975 | 721 | 2,619 | 1,160 | |||||||||||||||||||||
| Deposits in other financial institutions | 150 | 142 | 72 | 43 | 50 | 292 | 124 | |||||||||||||||||||||
| Total interest income | 24,527 | 23,451 | 23,492 | 22,645 | 21,850 | 47,978 | 42,669 | |||||||||||||||||||||
| INTEREST EXPENSE: | ||||||||||||||||||||||||||||
| Demand, money market and savings deposits | 569 | 544 | 579 | 545 | 525 | 1,113 | 1,037 | |||||||||||||||||||||
| Certificates and other time deposits | 1,665 | 1,560 | 1,470 | 1,287 | 1,211 | 3,225 | 2,355 | |||||||||||||||||||||
| Short-term borrowings | 106 | 139 | 33 | 47 | 2 | 245 | 2 | |||||||||||||||||||||
| Subordinated debt | 120 | 117 | 139 | 114 | 162 | 237 | 325 | |||||||||||||||||||||
| Other borrowed funds | 118 | 7 | 16 | 245 | 216 | 125 | 446 | |||||||||||||||||||||
| Total interest expense | 2,578 | 2,367 | 2,237 | 2,238 | 2,116 | 4,945 | 4,165 | |||||||||||||||||||||
| NET INTEREST INCOME | 21,949 | 21,084 | 21,255 | 20,407 | 19,734 | 43,033 | 38,504 | |||||||||||||||||||||
| Provision for loan losses | 1,645 | 710 | 2,159 | 1,530 | 1,420 | 2,355 | 2,103 | |||||||||||||||||||||
| Net interest income after provision for loan losses | 20,304 | 20,374 | 19,096 | 18,877 | 18,314 | 40,678 | 36,401 | |||||||||||||||||||||
| NONINTEREST INCOME: | ||||||||||||||||||||||||||||
| Nonsufficient funds fees | 145 | 163 | 191 | 179 | 168 | 308 | 333 | |||||||||||||||||||||
| Service charges on deposit accounts | 173 | 145 | 166 | 163 | 176 | 318 | 351 | |||||||||||||||||||||
| Gain on sale of branch assets | - | 2,050 | - | - | - | 2,050 | - | |||||||||||||||||||||
| Loss on sale of securities | - | - | (37 | ) | - | - | - | - | ||||||||||||||||||||
| Gain (loss) on sales of other real estate | - | - | - | 1 | - | - | (6 | ) | ||||||||||||||||||||
| Gain on sale of loans | - | - | - | 235 | - | - | - | |||||||||||||||||||||
| Bank owned life insurance | 154 | 166 | 171 | 167 | 174 | 320 | 266 | |||||||||||||||||||||
| Other | 740 | 780 | 487 | 456 | 429 | 1,520 | 869 | |||||||||||||||||||||
| Total noninterest income | 1,212 | 3,304 | 978 | 1,201 | 947 | 4,516 | 1,813 | |||||||||||||||||||||
| NONINTEREST EXPENSE: | ||||||||||||||||||||||||||||
| Salaries and employee benefits | 9,177 | 9,273 | 8,905 | 8,996 | 8,481 | 18,450 | 17,423 | |||||||||||||||||||||
| Net occupancy and equipment | 1,214 | 1,232 | 1,179 | 1,289 | 1,274 | 2,446 | 2,358 | |||||||||||||||||||||
| Depreciation | 415 | 417 | 424 | 414 | 409 | 832 | 776 | |||||||||||||||||||||
| Data processing and software amortization | 622 | 653 | 750 | 841 | 827 | 1,275 | 1,453 | |||||||||||||||||||||
| Professional fees | 401 | 534 | 451 | 343 | 397 | 935 | 877 | |||||||||||||||||||||
| Regulatory assessments and FDIC insurance | 355 | 345 | 356 | 296 | 320 | 700 | 694 | |||||||||||||||||||||
| Core deposit intangibles amortization | 195 | 199 | 208 | 207 | 207 | 394 | 415 | |||||||||||||||||||||
| Communications | 274 | 280 | 298 | 300 | 358 | 554 | 692 | |||||||||||||||||||||
| Advertising | 197 | 201 | 271 | 188 | 184 | 398 | 322 | |||||||||||||||||||||
| Other | 1,073 | 1,119 | 1,054 | 1,027 | 965 | 2,192 | 1,998 | |||||||||||||||||||||
| Total noninterest expense | 13,923 | 14,253 | 13,896 | 13,901 | 13,422 | 28,176 | 27,008 | |||||||||||||||||||||
| INCOME BEFORE INCOME TAXES | 7,593 | 9,425 | 6,178 | 6,177 | 5,839 | 17,018 | 11,206 | |||||||||||||||||||||
| Provision for income taxes | 2,339 | 3,070 | 1,966 | 1,957 | 1,956 | 5,409 | 3,852 | |||||||||||||||||||||
| NET INCOME | 5,254 | 6,355 | 4,212 | 4,220 | 3,883 | 11,609 | 7,354 | |||||||||||||||||||||
| Preferred stock dividends | - | - | - | 173 | 260 | - | 386 | |||||||||||||||||||||
| NET INCOME ATTRIBUTABLE TO COMMON | ||||||||||||||||||||||||||||
| STOCKHOLDERS | $ | 5,254 | $ | 6,355 | $ | 4,212 | $ | 4,047 | $ | 3,623 | $ | 11,609 | $ | 6,968 | ||||||||||||||
| Allegiance Bancshares, Inc. | ||||||||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| Three Months Ended | Year-to-Date | |||||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||
| June 30 | March 31 | December 31 | September 30 | June 30 | June 30 | June 30 | ||||||||||||||||||||||
| (Dollars and share amounts in thousands, except per share data) | ||||||||||||||||||||||||||||
| Net income | $ | 5,254 | $ | 6,355 | $ | 4,212 | $ | 4,220 | $ | 3,883 | $ | 11,609 | $ | 7,354 | ||||||||||||||
| Net income attributable to common stockholders | $ | 5,254 | $ | 6,355 | $ | 4,212 | $ | 4,047 | $ | 3,623 | $ | 11,609 | $ | 6,968 | ||||||||||||||
| Earnings per common share, basic | $ | 0.41 | $ | 0.49 | $ | 0.34 | $ | 0.41 | $ | 0.37 | $ | 0.90 | $ | 0.71 | ||||||||||||||
| Earnings per common share, diluted | $ | 0.40 | $ | 0.49 | $ | 0.33 | $ | 0.40 | $ | 0.36 | $ | 0.89 | $ | 0.70 | ||||||||||||||
| Return on average assets (A) | 0.91 | % | 1.19 | % | 0.81 | % | 0.85 | % | 0.84 | % | 1.04 | % | 0.80 | % | ||||||||||||||
| Return on average common equity (A) | 7.79 | % | 9.70 | % | 6.71 | % | 8.27 | % | 8.20 | % | 8.74 | % | 7.47 | % | ||||||||||||||
| Return on average tangible common equity (A) (B) | 9.30 | % | 11.67 | % | 8.19 | % | 10.77 | % | 10.04 | % | 10.46 | % | 9.83 | % | ||||||||||||||
| Tax equivalent net interest margin (C) | 4.32 | % | 4.45 | % | 4.60 | % | 4.61 | % | 4.79 | % | 4.38 | % | 4.76 | % | ||||||||||||||
| Efficiency ratio(D) | 60.11 | % | 63.80 | % | 62.40 | % | 65.04 | % | 64.90 | % | 61.93 | % | 66.99 | % | ||||||||||||||
| Liquidity and Capital Ratios | ||||||||||||||||||||||||||||
| Equity to assets | 11.67 | % | 12.05 | % | 12.40 | % | 9.74 | % | 10.38 | % | 11.67 | % | 10.38 | % | ||||||||||||||
| Common equity Tier 1 capital | 11.69 | % | 11.57 | % | 11.71 | % | 8.61 | % | 8.68 | % | 11.69 | % | 8.68 | % | ||||||||||||||
| Tier 1 risk-based capital | 12.16 | % | 12.04 | % | 12.20 | % | 9.12 | % | 9.88 | % | 12.16 | % | 9.88 | % | ||||||||||||||
| Total risk-based capital | 12.92 | % | 12.76 | % | 12.92 | % | 9.75 | % | 10.48 | % | 12.92 | % | 10.48 | % | ||||||||||||||
| Tier 1 leverage capital | 10.43 | % | 10.92 | % | 11.02 | % | 8.37 | % | 9.34 | % | 10.43 | % | 9.34 | % | ||||||||||||||
| Tangible common equity to tangible assets(B) | 10.00 | % | 10.26 | % | 10.48 | % | 7.69 | % | 7.64 | % | 10.00 | % | 7.64 | % | ||||||||||||||
| Other Data | ||||||||||||||||||||||||||||
| Weighted average shares: | ||||||||||||||||||||||||||||
| Basic | 12,857 | 12,840 | 12,390 | 9,823 | 9,825 | 12,849 | 9,824 | |||||||||||||||||||||
| Diluted | 13,039 | 12,967 | 12,589 | 10,003 | 10,004 | 13,003 | 10,001 | |||||||||||||||||||||
| Period end shares outstanding | 12,869 | 12,845 | 12,813 | 9,823 | 9,823 | 12,869 | 9,823 | |||||||||||||||||||||
| Book value per common share | $ | 21.47 | $ | 20.73 | $ | 20.17 | $ | 19.96 | $ | 19.37 | $ | 21.47 | $ | 19.37 | ||||||||||||||
| Tangible book value per common share(B) | $ | 18.06 | $ | 17.30 | $ | 16.69 | $ | 15.39 | $ | 14.79 | $ | 18.06 | $ | 14.79 | ||||||||||||||
| (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 noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of branch assets, loans and securities | ||||||||||||||||||||||||||||
| Additionally, taxes and provision for loan losses are not part of this calculation. | ||||||||||||||||||||||||||||
| Allegiance Bancshares, Inc. | ||||||||||||||||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||||||
| June 30, 2016 | March 31, 2016 | June 30, 2015 | ||||||||||||||||||||||||||||||||||
| 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 | $ | 1,724,346 | $ | 22,839 | 5.33 | % | $ | 1,663,711 | $ | 22,228 | 5.37 | % | $ | 1,478,752 | $ | 21,079 | 5.72 | % | ||||||||||||||||||
| Securities | 270,619 | 1,538 | 2.29 | % | 186,460 | 1,081 | 2.33 | % | 127,882 | 721 | 2.26 | % | ||||||||||||||||||||||||
| Deposits in other financial institutions | 96,358 | 150 | 0.62 | % | 91,824 | 142 | 0.62 | % | 62,247 | 50 | 0.32 | % | ||||||||||||||||||||||||
| Total interest-earning assets | 2,091,323 | $ | 24,527 | 4.72 | % | 1,941,995 | $ | 23,451 | 4.86 | % | 1,668,881 | $ | 21,850 | 5.25 | % | |||||||||||||||||||||
| Allowance for loan losses | (14,129 | ) | (13,487 | ) | (9,265 | ) | ||||||||||||||||||||||||||||||
| Noninterest-earning assets | 236,857 | 226,946 | 195,341 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 2,314,051 | $ | 2,155,454 | $ | 1,854,957 | ||||||||||||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 102,550 | $ | 88 | 0.34 | % | $ | 95,506 | $ | 67 | 0.28 | % | $ | 101,029 | $ | 83 | 0.33 | % | ||||||||||||||||||
| Money market and savings deposits | 435,851 | 481 | 0.44 | % | 433,139 | 477 | 0.44 | % | 420,992 | 442 | 0.42 | % | ||||||||||||||||||||||||
| Certificates and other time deposits | 627,982 | 1,665 | 1.07 | % | 614,216 | 1,560 | 1.02 | % | 548,076 | 1,211 | 0.89 | % | ||||||||||||||||||||||||
| Short-term borrowings | 88,242 | 106 | 0.48 | % | 126,374 | 139 | 0.44 | % | 4,451 | 2 | 0.16 | % | ||||||||||||||||||||||||
| Subordinated debt | 9,125 | 120 | 5.28 | % | 9,098 | 117 | 5.19 | % | 8,981 | 162 | 7.24 | % | ||||||||||||||||||||||||
| Other borrowed funds | 118,629 | 118 | 0.40 | % | 569 | 7 | 5.23 | % | 28,415 | 216 | 3.05 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,382,379 | $ | 2,578 | 0.75 | % | 1,278,902 | $ | 2,367 | 0.74 | % | 1,111,944 | $ | 2,116 | 0.76 | % | |||||||||||||||||||||
| Noninterest-Bearing liabilities: | ||||||||||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 652,405 | 605,969 | 534,688 | |||||||||||||||||||||||||||||||||
| Other liabilities | 8,139 | 7,186 | 6,868 | |||||||||||||||||||||||||||||||||
| Total liabilities | 2,042,923 | 1,892,057 | 1,653,500 | |||||||||||||||||||||||||||||||||
| Stockholders' equity | 271,128 | 263,397 | 201,457 | |||||||||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,314,051 | $ | 2,155,454 | $ | 1,854,957 | ||||||||||||||||||||||||||||||
| Net interest rate spread | 3.97 | % | 4.12 | % | 4.49 | % | ||||||||||||||||||||||||||||||
| Net interest income and margin | $ | 21,949 | 4.22 | % | $ | 21,084 | 4.37 | % | $ | 19,734 | 4.74 | % | ||||||||||||||||||||||||
| Net interest income and margin (tax equivalent) | $ | 22,481 | 4.32 | % | $ | 21,483 | 4.45 | % | $ | 19,923 | 4.79 | % | ||||||||||||||||||||||||
| Allegiance Bancshares, Inc. | ||||||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Year-to-Date | ||||||||||||||||||||||||||
| June 30, 2016 | June 30, 2015 | |||||||||||||||||||||||||
| 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 | $ | 1,694,029 | $ | 45,067 | 5.35 | % | $ | 1,447,629 | $ | 41,385 | 5.77 | % | ||||||||||||||
| Securities | 228,540 | 2,619 | 2.30 | % | 110,355 | 1,160 | 2.12 | % | ||||||||||||||||||
| Deposits in other financial institutions | 94,091 | 292 | 0.62 | % | 85,162 | 124 | 0.29 | % | ||||||||||||||||||
| Total interest-earning assets | 2,016,660 | $ | 47,978 | 4.78 | % | 1,643,146 | $ | 42,669 | 5.24 | % | ||||||||||||||||
| Allowance for loan losses | (13,808 | ) | (8,881 | ) | ||||||||||||||||||||||
| Noninterest-earning assets | 231,901 | 210,533 | ||||||||||||||||||||||||
| Total assets | $ | 2,234,753 | $ | 1,844,798 | ||||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 99,028 | $ | 155 | 0.31 | % | $ | 103,744 | $ | 179 | 0.35 | % | ||||||||||||||
| Money market and savings deposits | 434,495 | 958 | 0.44 | % | 413,287 | 858 | 0.42 | % | ||||||||||||||||||
| Certificates and other time deposits | 621,099 | 3,225 | 1.04 | % | 548,679 | 2,355 | 0.87 | % | ||||||||||||||||||
| Short-term borrowings | 107,308 | 245 | 0.46 | % | 2,238 | 2 | 0.16 | % | ||||||||||||||||||
| Subordinated debt | 9,111 | 237 | 5.23 | % | 8,940 | 325 | 7.33 | % | ||||||||||||||||||
| Other borrowed funds | 59,599 | 125 | 0.42 | % | 28,243 | 446 | 3.18 | % | ||||||||||||||||||
| Total interest-bearing liabilities | 1,330,640 | $ | 4,945 | 0.75 | % | 1,105,131 | $ | 4,165 | 0.76 | % | ||||||||||||||||
| Noninterest-Bearing liabilities: | ||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | 629,187 | 533,098 | ||||||||||||||||||||||||
| Other liabilities | 7,663 | 6,907 | ||||||||||||||||||||||||
| Total liabilities | 1,967,490 | 1,645,136 | ||||||||||||||||||||||||
| Stockholders' equity | 267,263 | 199,662 | ||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,234,753 | $ | 1,844,798 | ||||||||||||||||||||||
| Net interest rate spread | 4.03 | % | 4.48 | % | ||||||||||||||||||||||
| Net interest income and margin | $ | 43,033 | 4.29 | % | $ | 38,504 | 4.73 | % | ||||||||||||||||||
| Net interest income and margin (tax equivalent) | $ | 43,964 | 4.38 | % | $ | 38,762 | 4.76 | % | ||||||||||||||||||
| Allegiance Bancshares, Inc. | ||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| 2016 | 2015 | |||||||||||||||||||
| June 30 | March 31 | December 31 | September 30 | June 30 | ||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Period-end Loan Portfolio: | ||||||||||||||||||||
| Loans held for sale | $ | - | $ | - | $ | 27,887 | $ | 27,004 | $ | 25,629 | ||||||||||
| Commercial and industrial | 382,795 | 372,056 | 383,044 | 367,341 | 346,703 | |||||||||||||||
| Mortgage warehouse | 75,554 | 86,157 | 59,071 | 65,928 | 81,255 | |||||||||||||||
| Real Estate: | ||||||||||||||||||||
| Commercial real estate (including multi-family residential) | 806,771 | 770,252 | 745,595 | 710,857 | 678,979 | |||||||||||||||
| Commercial real estate construction and land development | 161,572 | 167,810 | 154,646 | 151,369 | 140,437 | |||||||||||||||
| 1-4 family residential (including home equity) | 214,442 | 209,704 | 205,200 | 185,473 | 178,635 | |||||||||||||||
| Residential construction | 101,677 | 100,611 | 93,848 | 95,212 | 94,167 | |||||||||||||||
| Consumer and other | 10,872 | 10,858 | 11,761 | 13,232 | 15,852 | |||||||||||||||
| Total loans | $ | 1,753,683 | $ | 1,717,448 | $ | 1,681,052 | $ | 1,616,416 | $ | 1,561,657 | ||||||||||
| Asset Quality: | ||||||||||||||||||||
| Nonaccrual loans | $ | 7,124 | $ | 6,979 | $ | 5,184 | $ | 6,185 | $ | 5,722 | ||||||||||
| Accruing loans 90 or more | ||||||||||||||||||||
| days past due | - | - | - | - | - | |||||||||||||||
| Total nonperforming loans | 7,124 | 6,979 | 5,184 | 6,185 | 5,722 | |||||||||||||||
| Other real estate | 1,397 | 1,397 | - | - | 21 | |||||||||||||||
| Other repossessed assets | 128 | 131 | 131 | 131 | 491 | |||||||||||||||
| Total nonperforming assets | $ | 8,649 | $ | 8,507 | $ | 5,315 | $ | 6,316 | $ | 6,234 | ||||||||||
| Net charge-offs (recoveries) | $ | 485 | $ | 51 | $ | 265 | $ | 638 | $ | 48 | ||||||||||
| Nonaccrual loans: | ||||||||||||||||||||
| Loans held for sale | $ | - | $ | - | $ | 209 | $ | 498 | $ | 1,130 | ||||||||||
| Commercial and industrial | 2,723 | 2,700 | 2,664 | 3,477 | 3,186 | |||||||||||||||
| Mortgage warehouse | - | - | - | - | - | |||||||||||||||
| Real Estate: | ||||||||||||||||||||
| Commercial real estate (including multi-family residential) | 4,141 | 3,293 | 2,006 | 1,783 | 974 | |||||||||||||||
| Commercial real estate construction and land development | - | - | - | - | - | |||||||||||||||
| 1-4 family residential (including home equity) | 227 | 934 | 239 | 341 | 343 | |||||||||||||||
| Residential construction | - | - | - | - | - | |||||||||||||||
| Consumer and other | 33 | 52 | 66 | 86 | 89 | |||||||||||||||
| Total nonaccrual loans | $ | 7,124 | $ | 6,979 | $ | 5,184 | $ | 6,185 | $ | 5,722 | ||||||||||
| Asset Quality Ratios: | ||||||||||||||||||||
| Nonperforming assets to total assets | 0.37 | % | 0.38 | % | 0.25 | % | 0.31 | % | 0.32 | % | ||||||||||
| Nonperforming loans to total loans | 0.41 | % | 0.41 | % | 0.31 | % | 0.38 | % | 0.37 | % | ||||||||||
| Allowance for loan losses to nonperforming loans | 209.39 | % | 197.12 | % | 252.66 | % | 181.15 | % | 180.22 | % | ||||||||||
| Allowance for loan losses to total loans | 0.85 | % | 0.80 | % | 0.78 | % | 0.69 | % | 0.66 | % | ||||||||||
| Net charge-offs to average loans (annualized) | 0.11 | % | 0.01 | % | 0.06 | % | 0.16 | % | 0.01 | % | ||||||||||
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 ratio of tangible common equity to tangible assets 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-to-Date | |||||||||||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||||||
| June 30 | March 31 | December 31 | September 30 | June 30 | June 30 | June 30 | ||||||||||||||||||||||||
| (Dollars and share amounts in thousands, except per share data) | ||||||||||||||||||||||||||||||
| Total Stockholders' equity | $ | 276,251 | $ | 266,293 | $ | 258,490 | $ | 196,043 | $ | 201,830 | $ | 276,251 | $ | 201,830 | ||||||||||||||||
| Less: Goodwill and core deposit intangibles, net | 43,835 | 44,030 | 44,619 | 44,826 | 45,034 | 43,835 | 45,034 | |||||||||||||||||||||||
| Tangible stockholders’ equity | $ | 232,416 | $ | 222,263 | $ | 213,871 | $ | 151,217 | $ | 156,796 | $ | 232,416 | $ | 156,796 | ||||||||||||||||
| Less: Preferred Stock | - | - | - | - | 11,550 | - | 11,550 | |||||||||||||||||||||||
| Tangible common stockholders’ equity | $ | 232,416 | $ | 222,263 | $ | 213,871 | $ | 151,217 | $ | 145,246 | $ | 232,416 | $ | 145,246 | ||||||||||||||||
| Shares outstanding at end of period | 12,869 | 12,845 | 12,813 | 9,823 | 9,823 | 12,869 | 9,823 | |||||||||||||||||||||||
| Tangible book value per common share | $ | 18.06 | $ | 17.30 | $ | 16.69 | $ | 15.39 | $ | 14.79 | $ | 18.06 | $ | 14.79 | ||||||||||||||||
| Net income attributable to common stockholders | $ | 5,254 | $ | 6,355 | $ | 4,212 | $ | 4,047 | $ | 3,623 | $ | 11,609 | $ | 6,968 | ||||||||||||||||
| Average common stockholders equity | $ | 271,128 | $ | 263,397 | $ | 248,925 | $ | 194,045 | $ | 189,907 | $ | 267,263 | $ | 188,112 | ||||||||||||||||
| Less: Average goodwill and core deposit intangibles, net | 43,930 | 44,319 | 44,886 | 44,929 | 45,150 | 44,124 | 45,205 | |||||||||||||||||||||||
| Average tangible common stockholders’ equity | $ | 227,198 | $ | 219,078 | $ | 204,039 | $ | 149,116 | $ | 144,757 | $ | 223,139 | $ | 142,907 | ||||||||||||||||
| Return on average tangible common equity | 9.30 | % | 11.67 | % | 8.19 | % | 10.77 | % | 10.04 | % | 10.46 | % | 9.83 | % | ||||||||||||||||
| Total assets | $ | 2,367,581 | $ | 2,210,707 | $ | 2,084,579 | $ | 2,012,350 | $ | 1,945,156 | $ | 2,367,581 | $ | 1,945,156 | ||||||||||||||||
| Less: Goodwill and core deposit intangibles, net | 43,835 | 44,030 | 44,619 | 44,826 | 45,034 | 43,835 | 45,034 | |||||||||||||||||||||||
| Tangible assets | $ | 2,323,746 | $ | 2,166,677 | $ | 2,039,960 | $ | 1,967,524 | $ | 1,900,122 | $ | 2,323,746 | $ | 1,900,122 | ||||||||||||||||
| Tangible common equity to tangible assets | 10.00 | % | 10.26 | % | 10.48 | % | 7.69 | % | 7.64 | % | 10.00 | % | 7.64 | % | ||||||||||||||||