Attached files
| file | filename |
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| EX-99.1 - EXHIBIT 99.1-EARNINGS RELEASE - Allegiance Bancshares, Inc. | earningsrelease-6302017.htm |
| 8-K - 8-K - Allegiance Bancshares, Inc. | a8-kearningsrelease6302017.htm |
Second Quarter 2017
Earnings Presentation
2
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation 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. 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; 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
Annual Report on Form 10-K for the fiscal year ended December 31, 2016 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 presentation 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.
3
Allegiance Overview
• Holding company for Allegiance Bank based in Houston, Texas
• Headquartered in Houston, Texas
• NASDAQ Ticker: ABTX
• 16 full service banking locations and one loan production office within the Houston MSA
• Super-community banking model
• Two acquisitions completed:
• 2013: Independence Bank with $222.1 million in total assets
• 2015: Enterprise Bank (F&M Bancshares) with $569.7 million in total assets
4
Our Super-community Banking Strategy
Focus on Small and
Medium-Sized
Owner-Operated
Businesses
Responsive
Decision-Making by
Empowered Lenders
Full-Service Bank
Locations
Centralized Credit
Administration
Experienced Central
Operations Staff
Scalable Platform
Effective Centralized Operations
Extraordinary
Customer
Experience
Favorable Loan
Yields and Deposit
Relationships
High Net Interest
Margin
Strong Credit
Quality
Enhanced Efficiency
and Profitability
5
Highlights - 2017
• Record core loan growth of $363.0 million, or 21.6%, to $2.04 billion for the second quarter 2017 compared to $1.68 billion
for the second quarter 2016 and increased $118.8 million, or 24.7% (annualized), from $1.92 billion for the first quarter
2017.
• Net interest income increased 14.4% year over year and 4.1% for the second quarter 2017 compared to the linked
quarter.
• Net income in the second quarter 2017 was $5.4 million with diluted earnings per share of $0.40 compared to $5.3 million
and $0.40 in the second quarter 2016 and $6.0 million and $0.45 in the first quarter 2017.
• Efficiency ratio decreased to 61.92% for the second quarter 2017 from 64.98% for the first quarter 2017 and increased
from 60.11% for the second quarter 2016.
• Assets of $2.72 billion, loans of $2.11 billion, deposits of $2.10 billion and shareholder's equity of $298.5 million at
June 30, 2017.
• Added 5 lenders to the lending team for the year-to-date 2017, which complements the 12 strong lenders who joined in
2016 to support our ambitious growth plans.
• Recognized as the Largest Houston-Area Community Bank by the Houston Business Journal.
• Recognized as a 2016 Top Workplace by the Houston Chronicle.
• Houston Business Journal 2016 Best Places to Work recipient.
• Named one of the Best Banks to Work For in 2016 by the American Banker Magazine.
6
Net Income Growth
($ in millions)
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
*
*
7
Diluted EPS Growth
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
*
*
8
Net Interest Income and Margin
($ in millions)
9
Performance Metrics
*
*Includes a one-time gain from sale of branches of $1.3 million (after-tax).
**Interim periods annualized.
*
**
**
10
($ in millions)
Balance Sheet Growth
11
Loan Growth
($ in millions)
12
Loan Portfolio Composition
Loan Portfolio (as of June 30, 2017)
CRE (including multi-family) $1,008.0 47.7 %
C&I 444.8 21.0 %
1-4 Family Residential 267.9 12.7 %
CRE Construction 206.0 9.7 %
Residential Construction 102.8 4.9 %
Mortgage Warehouse 73.5 3.5 %
Consumer and Other 11.7 0.5 %
Gross Loans $2,114.7 100.0 %
Approximately
53.7% of CRE is
owner occupied
CRE By Property Type
Retail $298.7 29.6%
Industrial/Warehouse 172.8 17.2
Office 131.4 13.0
C-Store 96.6 9.6
Hotel/Motel 94.0 9.3
Multi-Family 57.5 5.7
Farmland 23.3 2.3
Health Care 15.5 1.5
Other 118.2 11.8
Total CRE (incl. multi-family) $1,008.0 100.0%
($ in millions)
CRE Construction by Property Type
Vacant Land(Lots/Teardowns) $95.8 46.5%
Retail 22.4 10.9
C-Store 20.1 9.8
Hotel/Motel 13.4 6.5
Industrial Warehouse 11.3 5.5
Office 11.1 5.4
Health Care 4.6 2.2
Investment Property 3.5 1.7
Other 23.8 11.5
Total CRE Construction $206.0 100.0%
13
Deposit Growth and Composition
($ in millions)
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Strong Credit Quality
*
*Interim period annualized.
Corporate Office
8847 West Sam Houston Parkway North, Suite 200
Houston, Texas 77040
Investor Relations I ir@allegiancebank.com