Attached files
| file | filename |
|---|---|
| EX-99.2 - EX-99.2 - Allegiance Bancshares, Inc. | abtx-ex992_6.htm |
| 8-K - 8-K - Allegiance Bancshares, Inc. | abtx-8k_20190125.htm |
Exhibit 99.1
PRESS RELEASE
Allegiance Bancshares, Inc.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com
ALLEGIANCE BANCSHARES, INC. REPORTS RECORD
YEAR-END 2018 RESULTS
|
|
• |
Total assets of $4.66 billion after the completion of the acquisition of Post Oak Bancshares, Inc. on October 1, 2018 |
|
|
• |
Record earnings of $37.3 million and diluted earnings per common share of $2.37 for the year 2018 |
|
|
• |
Core loan growth of $1.46 billion year over year, or 66.3%, and $1.27 billion for the fourth quarter 2018 compared to the linked quarter, or 53.0% |
|
|
• |
Net charge-offs of 0.02% and 0.06% for the fourth quarter and year 2018, respectively |
HOUSTON, January 25, 2019. Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $13.2 million and diluted earnings per share of $0.59 for the fourth quarter 2018 compared to $3.2 million and diluted earnings per share of $0.24 for the fourth quarter 2017. Net income for the year ended December 31, 2018 was $37.3 million, or $2.37 per diluted share, compared to $17.6 million, or $1.31 per diluted share, for the year ended December 31, 2017. The year ended December 31, 2018 results include $1.8 million and $1.7 million of core system conversion and merger-related expenses, respectively.
“2018 was a year of significant accomplishments for Allegiance, from our core technology platform conversion in the second quarter to the successful completion of the Post Oak acquisition in the fourth quarter,” said George Martinez, Allegiance’s Chairman and Chief Executive Officer. “We are extremely proud of the phenomenal results our team has achieved. We reported record earnings and diluted earnings per share in 2018 and we are well-positioned to deliver strong growth and performance in 2019. Our combination with Post Oak further distinguishes Allegiance as Houston’s largest community bank exclusively focused on the Houston area, and we look forward to continuing our track record of growth serving the local business community. Excluding loans acquired from Post Oak, core loans grew $294.3 million over the prior year. This is a tremendous accomplishment and is attributable to our experienced and highly dedicated lenders and back office support team. Also, we are pleased to have delivered such strong growth with minimal net charge-offs totaling only 6 basis points on average loans during the year,” continued Martinez.
“We are particularly excited about our prospects as we head into 2019. We have begun the operational integration with Post Oak during the first quarter and look forward to further enhancing our already large Houston area footprint. Early in 2019, we received regulatory approvals for the previously announced acquisition of a branch office in Sugar Land, a suburb of Houston, which we plan to complete in February 2019, and the much anticipated opening of a de novo bank office on the east side of downtown Houston, in early 2020. Our commitment to being Houston’s premier super-community bank that delivers personalized service to our customers and serves our communities and shareholders could only be accomplished with the tireless work of our outstanding employees for whom we are very grateful,” concluded Martinez.
Fourth Quarter 2018 Results
Net interest income before the provision for loan losses in the fourth quarter 2018 increased $18.4 million, or 67.1%, to $45.8 million from $27.4 million for the fourth quarter 2017 primarily due to a $1.53 billion, or 59.3%, increase in average interest-earning assets for the same period primarily due to the Post Oak Bancshares, Inc. acquisition as well as organic growth for the year over year period. Net interest income before provision for loan losses in the fourth quarter 2018 increased 63.5% or $17.8 million to $45.8 million from $28.0 million in the third quarter 2018, primarily due to the Post Oak acquisition and $2.7 million in acquisition accounting adjustments recorded during the fourth quarter of 2018. The net interest margin on a tax equivalent basis increased 12 basis points to 4.45% for the fourth quarter 2018 from 4.33% for the fourth quarter 2017 and increased 35 basis points from 4.10% for the third
1
quarter 2018. Excluding the impact of acquisition accounting adjustments, the net interest margin on a tax equivalent basis for the fourth quarter 2018 would have been 4.16% compared to 4.33% and 4.10% for the fourth quarter 2017 and third quarter 2018, respectively.
Noninterest income for the fourth quarter 2018 was $2.3 million, an increase of $751 thousand, or 47.4%, compared to $1.6 million for the fourth quarter 2017 and increased $406 thousand, or 21.1%, compared to $1.9 million for the third quarter 2018. Noninterest income for the fourth quarter 2018 included $429 thousand of loss on the sales of other real estate and repossessed assets.
Noninterest expense for the fourth quarter 2018 increased $9.8 million, or 50.7%, to $29.0 million from $19.3 million for the fourth quarter 2017, and increased $9.9 million, or 51.6%, from $19.2 million for the third quarter 2018. These increases were primarily due to additional noninterest expenses associated with the Post Oak acquisition, of which $840 thousand was attributable to acquisition and merger-related expenses.
In the fourth quarter 2018, Allegiance’s efficiency ratio decreased to 60.30% from 66.50% for the fourth quarter 2017 and 63.95% for the third quarter 2018. Fourth quarter 2018 annualized returns on average assets, average equity and average tangible equity were 1.12%, 7.49% and 11.66%, respectively, compared to 0.45%, 4.15% and 4.82%, respectively, for the fourth quarter 2017. Annualized returns on average assets, average equity and average tangible equity for the third quarter 2018 were 1.18%, 10.80% and 12.40%, respectively.
Year-End December 31, 2018 Results
Net interest income before provision for loan losses for the year ended 2018 increased $24.9 million, or 24.0%, to $128.6 million from $103.7 million for the year ended December 31, 2017 primarily due to a $582.6 million, or 23.7%, increase in average interest-earning assets over the prior year associated with the Post Oak acquisition. The net interest margin on a tax equivalent basis decreased 7 basis points to 4.27% for the year ended December 31, 2018 from 4.34% for the year ended December 31, 2017. Excluding the impact of acquisition accounting adjustments, the net interest margin for the year ended December 31, 2018 would have been 4.17%, compared to 4.32% for the year ended December 31, 2017.
Noninterest income for the year ended December 31, 2018 was $7.7 million, an increase of $1.9 million, or 31.6%, compared to $5.9 million for the year ended December 31, 2017.
Noninterest expense for the year ended December 31, 2018 increased $16.8 million, or 24.0%, to $86.8 million from $70.0 million for the year ended December 31, 2017. The increase in noninterest expense over the year ended December 31, 2017 was primarily due to core system conversion expenses of $1.8 million, merger-related expenses of $1.7 million and additional expenses related to additional headcount and branches from the Post Oak acquisition during the year ended December 31, 2018.
Allegiance’s efficiency ratio decreased from 63.89% for the year ended December 31, 2017 to 63.68% for the year ended December 31, 2018. For the year ended December 31, 2018, returns on average assets, average equity and average tangible equity were 1.11%, 9.02% and 11.20%, respectively, compared to 0.65%, 5.92% and 6.93%, respectively, for the year ended December 31, 2017.
Financial Condition
Total assets at December 31, 2018 increased $1.79 billion, or 62.8%, to $4.66 billion compared to $2.86 billion at December 31, 2017 and increased $1.62 billion, or 53.4%, compared to $3.04 billion at September 30, 2018, primarily due to the Post Oak acquisition and organic loan growth.
Total loans at December 31, 2018 increased $1.44 billion, or 63.3%, to $3.71 billion compared to $2.27 billion at December 31, 2017 and increased $1.27 billion, or 51.9%, compared to $2.44 billion at September 30, 2018, primarily due to loans acquired in the Post Oak acquisition. Core loans, which exclude the mortgage warehouse portfolio, increased $1.46 billion, or 66.3%, to $3.66 billion at December 31, 2018 from $2.20 billion at December 31, 2017 and increased $1.27 billion, or 53.0%, from $2.39 billion at September 30, 2018. Excluding loans acquired from Post Oak of $1.16 billion, core loans increased $294.3 million, from December 31, 2017 and $103.7 million, from September 30, 2018.
Deposits at December 31, 2018 increased $1.45 billion, or 65.4%, to $3.66 billion compared to $2.21 billion at December 31, 2017 and increased $1.23 billion, or 50.5%, compared to $2.43 billion at September 30, 2018, primarily related to the Post Oak acquisition.
Asset Quality
Nonperforming assets totaled $33.6 million, or 0.72% of total assets, at December 31, 2018, compared to $13.9 million, or 0.49%, of total assets, at December 31, 2017, and $16.9 million, or 0.56% of total assets, at September 30, 2018. The allowance for loan losses was 0.71% of total loans at December 31, 2018, 1.04% of total loans at December 31, 2017 and 0.97% of total loans at September 30,
2
2018. The decrease in the allowance for loan losses as a percentage of loans from prior periods reflects the loans acquired in the Post Oak acquisition that were recorded at fair value without an allowance for loan losses at acquisition date.
The provision for loan losses for the fourth quarter 2018 was $3.0 million, or 0.32% (annualized) of average loans, compared to $1.9 million, 0.49%, of average loans, for the fourth quarter 2017.
Fourth quarter 2018 net charge-offs were $219 thousand compared to net charge-offs of $2.0 million for the fourth quarter 2017 and $245 thousand for the third quarter 2018. Net charge-offs for the year 2018 were $1.6 million down from $7.5 million for the year 2017.
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 10 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 Friday, January 25, 2019 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its fourth quarter and year-end 2018 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 4644835. Alternatively, a simultaneous audio-only webcast may be accessed via the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Upcoming Events. If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under News and Events, Event Calendar, Past Events.
Allegiance Bancshares, Inc.
As of December 31, 2018, Allegiance was a $4.66 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 super-community banking strategy was designed to foster strong customer relationships while benefiting from a platform and scale that is competitive with larger local and regional banks. As of December 31, 2018, Allegiance Bank operated 28 full-service banking locations, with 27 bank offices and one loan production office 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 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,” “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 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 risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 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.
3
Financial Highlights
(Unaudited)
|
|
|
2018 |
|
|
2017 |
|
||||||||||||||
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|||||
|
|
|
(Dollars in thousands) |
|
|||||||||||||||||
|
Cash and cash equivalents |
|
$ |
268,947 |
|
|
$ |
191,468 |
|
|
$ |
200,645 |
|
|
$ |
190,088 |
|
|
$ |
182,103 |
|
|
Available for sale securities |
|
|
337,293 |
|
|
|
300,115 |
|
|
|
300,897 |
|
|
|
307,411 |
|
|
|
309,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans |
|
|
3,708,306 |
|
|
|
2,440,926 |
|
|
|
2,358,675 |
|
|
|
2,290,494 |
|
|
|
2,270,876 |
|
|
Allowance for loan losses |
|
|
(26,331 |
) |
|
|
(23,586 |
) |
|
|
(23,831 |
) |
|
|
(24,628 |
) |
|
|
(23,649 |
) |
|
Loans, net |
|
|
3,681,975 |
|
|
|
2,417,340 |
|
|
|
2,334,844 |
|
|
|
2,265,866 |
|
|
|
2,247,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
|
223,125 |
|
|
|
39,389 |
|
|
|
39,389 |
|
|
|
39,389 |
|
|
|
39,389 |
|
|
Core deposit intangibles, net |
|
|
26,587 |
|
|
|
2,688 |
|
|
|
2,883 |
|
|
|
3,079 |
|
|
|
3,274 |
|
|
Premises and equipment, net |
|
|
41,717 |
|
|
|
18,970 |
|
|
|
19,049 |
|
|
|
18,605 |
|
|
|
18,477 |
|
|
Other real estate owned |
|
|
630 |
|
|
|
1,801 |
|
|
|
1,710 |
|
|
|
365 |
|
|
|
365 |
|
|
Bank owned life insurance |
|
|
26,480 |
|
|
|
22,838 |
|
|
|
22,701 |
|
|
|
22,563 |
|
|
|
22,422 |
|
|
Other assets |
|
|
48,495 |
|
|
|
40,930 |
|
|
|
44,308 |
|
|
|
39,118 |
|
|
|
37,359 |
|
|
Total assets |
|
$ |
4,655,249 |
|
|
$ |
3,035,539 |
|
|
$ |
2,966,426 |
|
|
$ |
2,886,484 |
|
|
$ |
2,860,231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
$ |
1,209,300 |
|
|
$ |
789,705 |
|
|
$ |
749,787 |
|
|
$ |
694,880 |
|
|
$ |
683,110 |
|
|
Interest-bearing deposits |
|
|
2,453,236 |
|
|
|
1,644,086 |
|
|
|
1,563,999 |
|
|
|
1,589,922 |
|
|
|
1,530,864 |
|
|
Total deposits |
|
|
3,662,536 |
|
|
|
2,433,791 |
|
|
|
2,313,786 |
|
|
|
2,284,802 |
|
|
|
2,213,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowed funds |
|
|
225,493 |
|
|
|
211,569 |
|
|
|
275,569 |
|
|
|
232,569 |
|
|
|
282,569 |
|
|
Subordinated debt |
|
|
48,899 |
|
|
|
48,839 |
|
|
|
48,779 |
|
|
|
48,719 |
|
|
|
48,659 |
|
|
Other liabilities |
|
|
15,337 |
|
|
|
13,209 |
|
|
|
8,404 |
|
|
|
8,406 |
|
|
|
8,164 |
|
|
Total liabilities |
|
|
3,952,265 |
|
|
|
2,707,408 |
|
|
|
2,646,538 |
|
|
|
2,574,496 |
|
|
|
2,553,366 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
21,938 |
|
|
|
13,397 |
|
|
|
13,341 |
|
|
|
13,302 |
|
|
|
13,227 |
|
|
Capital surplus |
|
|
571,803 |
|
|
|
221,762 |
|
|
|
220,665 |
|
|
|
219,760 |
|
|
|
218,408 |
|
|
Retained earnings |
|
|
112,131 |
|
|
|
98,968 |
|
|
|
90,089 |
|
|
|
82,533 |
|
|
|
74,894 |
|
|
Accumulated other comprehensive (loss) income |
|
|
(2,888 |
) |
|
|
(5,996 |
) |
|
|
(4,207 |
) |
|
|
(3,607 |
) |
|
|
336 |
|
|
Total shareholders’ equity |
|
|
702,984 |
|
|
|
328,131 |
|
|
|
319,888 |
|
|
|
311,988 |
|
|
|
306,865 |
|
|
Total liabilities and equity |
|
$ |
4,655,249 |
|
|
$ |
3,035,539 |
|
|
$ |
2,966,426 |
|
|
$ |
2,886,484 |
|
|
$ |
2,860,231 |
|
4
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|
Year-to-Date |
|
||||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||||||||||||||
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
December 31 |
|
|
December 31 |
|
|||||||
|
|
|
(Dollars in thousands, except per share data) |
|
|||||||||||||||||||||||||
|
INTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
53,272 |
|
|
$ |
32,988 |
|
|
$ |
31,846 |
|
|
$ |
30,117 |
|
|
$ |
29,747 |
|
|
$ |
148,223 |
|
|
$ |
110,331 |
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
2,464 |
|
|
|
636 |
|
|
|
646 |
|
|
|
599 |
|
|
|
563 |
|
|
|
4,345 |
|
|
|
2,111 |
|
|
Tax-exempt |
|
|
(175 |
) |
|
|
1,447 |
|
|
|
1,451 |
|
|
|
1,459 |
|
|
|
1,545 |
|
|
|
4,182 |
|
|
|
6,334 |
|
|
Deposits in other financial institutions |
|
|
742 |
|
|
|
265 |
|
|
|
250 |
|
|
|
216 |
|
|
|
183 |
|
|
|
1,473 |
|
|
|
662 |
|
|
Total interest income |
|
|
56,303 |
|
|
|
35,336 |
|
|
|
34,193 |
|
|
|
32,391 |
|
|
|
32,038 |
|
|
|
158,223 |
|
|
|
119,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand, money market and savings deposits |
|
|
3,367 |
|
|
|
1,248 |
|
|
|
887 |
|
|
|
976 |
|
|
|
992 |
|
|
|
6,478 |
|
|
|
3,159 |
|
|
Certificates and other time deposits |
|
|
5,358 |
|
|
|
4,051 |
|
|
|
3,284 |
|
|
|
2,785 |
|
|
|
2,521 |
|
|
|
15,478 |
|
|
|
9,060 |
|
|
Borrowed funds |
|
|
1,008 |
|
|
|
1,272 |
|
|
|
1,472 |
|
|
|
1,036 |
|
|
|
854 |
|
|
|
4,788 |
|
|
|
2,922 |
|
|
Subordinated debt |
|
|
732 |
|
|
|
729 |
|
|
|
734 |
|
|
|
705 |
|
|
|
235 |
|
|
|
2,900 |
|
|
|
629 |
|
|
Total interest expense |
|
|
10,465 |
|
|
|
7,300 |
|
|
|
6,377 |
|
|
|
5,502 |
|
|
|
4,602 |
|
|
|
29,644 |
|
|
|
15,770 |
|
|
NET INTEREST INCOME |
|
|
45,838 |
|
|
|
28,036 |
|
|
|
27,816 |
|
|
|
26,889 |
|
|
|
27,436 |
|
|
|
128,579 |
|
|
|
103,668 |
|
|
Provision for loan losses |
|
|
2,964 |
|
|
|
— |
|
|
|
631 |
|
|
|
653 |
|
|
|
1,930 |
|
|
|
4,248 |
|
|
|
13,188 |
|
|
Net interest income after provision for loan losses |
|
|
42,874 |
|
|
|
28,036 |
|
|
|
27,185 |
|
|
|
26,236 |
|
|
|
25,506 |
|
|
|
124,331 |
|
|
|
90,480 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonsufficient funds fees |
|
|
190 |
|
|
|
175 |
|
|
|
214 |
|
|
|
176 |
|
|
|
158 |
|
|
|
755 |
|
|
|
685 |
|
|
Service charges on deposit accounts |
|
|
363 |
|
|
|
177 |
|
|
|
106 |
|
|
|
223 |
|
|
|
179 |
|
|
|
869 |
|
|
|
783 |
|
|
Gain on sale of securities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
|
|
— |
|
|
|
18 |
|
|
(Loss) gain on sales of other real estate and repossessed assets |
|
|
(429 |
) |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
6 |
|
|
|
(428 |
) |
|
|
6 |
|
|
Bank owned life insurance |
|
|
163 |
|
|
|
137 |
|
|
|
138 |
|
|
|
141 |
|
|
|
145 |
|
|
|
579 |
|
|
|
585 |
|
|
Rebate from correspondent bank |
|
|
988 |
|
|
|
613 |
|
|
|
564 |
|
|
|
444 |
|
|
|
388 |
|
|
|
2,609 |
|
|
|
1,327 |
|
|
Other |
|
|
1,059 |
|
|
|
826 |
|
|
|
782 |
|
|
|
662 |
|
|
|
677 |
|
|
|
3,329 |
|
|
|
2,457 |
|
|
Total noninterest income |
|
|
2,334 |
|
|
|
1,928 |
|
|
|
1,805 |
|
|
|
1,646 |
|
|
|
1,583 |
|
|
|
7,713 |
|
|
|
5,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
18,167 |
|
|
|
12,965 |
|
|
|
12,778 |
|
|
|
12,794 |
|
|
|
12,188 |
|
|
|
56,704 |
|
|
|
44,745 |
|
|
Net occupancy and equipment |
|
|
1,959 |
|
|
|
1,281 |
|
|
|
1,333 |
|
|
|
1,272 |
|
|
|
1,398 |
|
|
|
5,845 |
|
|
|
5,452 |
|
|
Depreciation |
|
|
802 |
|
|
|
490 |
|
|
|
433 |
|
|
|
407 |
|
|
|
412 |
|
|
|
2,132 |
|
|
|
1,637 |
|
|
Data processing and software amortization |
|
|
1,485 |
|
|
|
1,226 |
|
|
|
1,356 |
|
|
|
1,053 |
|
|
|
1,850 |
|
|
|
5,120 |
|
|
|
4,047 |
|
|
Professional fees |
|
|
670 |
|
|
|
303 |
|
|
|
567 |
|
|
|
469 |
|
|
|
222 |
|
|
|
2,009 |
|
|
|
2,926 |
|
|
Regulatory assessments and FDIC insurance |
|
|
776 |
|
|
|
505 |
|
|
|
494 |
|
|
|
534 |
|
|
|
533 |
|
|
|
2,309 |
|
|
|
2,273 |
|
|
Core deposit intangibles amortization |
|
|
1,229 |
|
|
|
195 |
|
|
|
196 |
|
|
|
195 |
|
|
|
195 |
|
|
|
1,815 |
|
|
|
781 |
|
|
Communications |
|
|
416 |
|
|
|
262 |
|
|
|
259 |
|
|
|
248 |
|
|
|
252 |
|
|
|
1,185 |
|
|
|
983 |
|
|
Advertising |
|
|
704 |
|
|
|
351 |
|
|
|
340 |
|
|
|
330 |
|
|
|
436 |
|
|
|
1,725 |
|
|
|
1,289 |
|
|
Acquisition and merger-related expenses |
|
|
840 |
|
|
|
196 |
|
|
|
625 |
|
|
|
— |
|
|
|
— |
|
|
|
1,661 |
|
|
|
— |
|
|
Other |
|
|
1,998 |
|
|
|
1,390 |
|
|
|
1,479 |
|
|
|
1,415 |
|
|
|
1,790 |
|
|
|
6,282 |
|
|
|
5,829 |
|
|
Total noninterest expense |
|
|
29,046 |
|
|
|
19,164 |
|
|
|
19,860 |
|
|
|
18,717 |
|
|
|
19,276 |
|
|
|
86,787 |
|
|
|
69,962 |
|
|
INCOME BEFORE INCOME TAXES |
|
|
16,162 |
|
|
|
10,800 |
|
|
|
9,130 |
|
|
|
9,165 |
|
|
|
7,813 |
|
|
|
45,257 |
|
|
|
26,379 |
|
|
Provision for income taxes |
|
|
2,999 |
|
|
|
1,921 |
|
|
|
1,574 |
|
|
|
1,454 |
|
|
|
4,609 |
|
|
|
7,948 |
|
|
|
8,747 |
|
|
NET INCOME |
|
$ |
13,163 |
|
|
$ |
8,879 |
|
|
$ |
7,556 |
|
|
$ |
7,711 |
|
|
$ |
3,204 |
|
|
$ |
37,309 |
|
|
$ |
17,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.60 |
|
|
$ |
0.66 |
|
|
$ |
0.57 |
|
|
$ |
0.58 |
|
|
$ |
0.24 |
|
|
$ |
2.41 |
|
|
$ |
1.34 |
|
|
Diluted |
|
$ |
0.59 |
|
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.57 |
|
|
$ |
0.24 |
|
|
$ |
2.37 |
|
|
$ |
1.31 |
|
5
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|
Year-to-Date |
|
||||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||||||||||||||
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
December 31 |
|
|
December 31 |
|
|||||||
|
|
|
(Dollars and share amounts in thousands, except per share data) |
|
|||||||||||||||||||||||||
|
Net income |
|
$ |
13,163 |
|
|
$ |
8,879 |
|
|
$ |
7,556 |
|
|
$ |
7,711 |
|
|
$ |
3,204 |
|
|
$ |
37,309 |
|
|
$ |
17,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share, basic |
|
$ |
0.60 |
|
|
$ |
0.66 |
|
|
$ |
0.57 |
|
|
$ |
0.58 |
|
|
$ |
0.24 |
|
|
$ |
2.41 |
|
|
$ |
1.34 |
|
|
Earnings per share, diluted |
|
$ |
0.59 |
|
|
$ |
0.65 |
|
|
$ |
0.55 |
|
|
$ |
0.57 |
|
|
$ |
0.24 |
|
|
$ |
2.37 |
|
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(A) |
|
|
1.12 |
% |
|
|
1.18 |
% |
|
|
1.03 |
% |
|
|
1.09 |
% |
|
|
0.45 |
% |
|
|
1.11 |
% |
|
|
0.65 |
% |
|
Return on average equity(A) |
|
|
7.49 |
% |
|
|
10.80 |
% |
|
|
9.55 |
% |
|
|
10.10 |
% |
|
|
4.15 |
% |
|
|
9.02 |
% |
|
|
5.92 |
% |
|
Return on average tangible equity(A)(B) |
|
|
11.66 |
% |
|
|
12.40 |
% |
|
|
11.02 |
% |
|
|
11.71 |
% |
|
|
4.82 |
% |
|
|
11.20 |
% |
|
|
6.93 |
% |
|
Tax equivalent net interest margin(C) |
|
|
4.45 |
% |
|
|
4.10 |
% |
|
|
4.21 |
% |
|
|
4.20 |
% |
|
|
4.33 |
% |
|
|
4.27 |
% |
|
|
4.34 |
% |
|
Tax equivalent net interest margin-adjusted for acquisition accounting adjustments(D) |
|
|
4.16 |
% |
|
|
4.10 |
% |
|
|
4.21 |
% |
|
|
4.20 |
% |
|
|
4.32 |
% |
|
|
4.17 |
% |
|
|
4.32 |
% |
|
Efficiency ratio(E) |
|
|
60.30 |
% |
|
|
63.95 |
% |
|
|
67.05 |
% |
|
|
65.59 |
% |
|
|
66.50 |
% |
|
|
63.68 |
% |
|
|
63.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liquidity and Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allegiance Bancshares, Inc. (Consolidated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to assets |
|
|
15.10 |
% |
|
|
10.81 |
% |
|
|
10.78 |
% |
|
|
10.81 |
% |
|
|
10.73 |
% |
|
|
15.10 |
% |
|
|
10.73 |
% |
|
Tangible equity to tangible assets(B) |
|
|
10.29 |
% |
|
|
9.56 |
% |
|
|
9.49 |
% |
|
|
9.48 |
% |
|
|
9.38 |
% |
|
|
10.29 |
% |
|
|
9.38 |
% |
|
Estimated common equity tier 1 capital |
|
|
11.78 |
% |
|
|
11.17 |
% |
|
|
10.60 |
% |
|
|
10.82 |
% |
|
|
10.54 |
% |
|
|
11.78 |
% |
|
|
10.54 |
% |
|
Estimated tier 1 risk-based capital |
|
|
12.02 |
% |
|
|
11.53 |
% |
|
|
10.97 |
% |
|
|
11.19 |
% |
|
|
10.92 |
% |
|
|
12.02 |
% |
|
|
10.92 |
% |
|
Estimated total risk-based capital |
|
|
13.72 |
% |
|
|
13.94 |
% |
|
|
13.42 |
% |
|
|
13.72 |
% |
|
|
13.43 |
% |
|
|
13.72 |
% |
|
|
13.43 |
% |
|
Estimated tier 1 leverage capital |
|
|
9.16 |
% |
|
|
10.23 |
% |
|
|
9.78 |
% |
|
|
9.98 |
% |
|
|
9.84 |
% |
|
|
9.16 |
% |
|
|
9.84 |
% |
|
Allegiance Bank |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated common equity tier 1 capital |
|
|
11.85 |
% |
|
|
11.24 |
% |
|
|
11.04 |
% |
|
|
10.95 |
% |
|
|
10.72 |
% |
|
|
11.85 |
% |
|
|
10.72 |
% |
|
Estimated tier 1 risk-based capital |
|
|
11.85 |
% |
|
|
11.24 |
% |
|
|
11.04 |
% |
|
|
10.95 |
% |
|
|
10.72 |
% |
|
|
11.85 |
% |
|
|
10.72 |
% |
|
Estimated total risk-based capital |
|
|
13.55 |
% |
|
|
13.65 |
% |
|
|
13.49 |
% |
|
|
13.49 |
% |
|
|
13.24 |
% |
|
|
13.55 |
% |
|
|
13.24 |
% |
|
Estimated tier 1 leverage capital |
|
|
10.46 |
% |
|
|
9.98 |
% |
|
|
9.84 |
% |
|
|
9.77 |
% |
|
|
9.67 |
% |
|
|
10.46 |
% |
|
|
9.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
21,908 |
|
|
|
13,371 |
|
|
|
13,327 |
|
|
|
13,262 |
|
|
|
13,187 |
|
|
|
15,485 |
|
|
|
13,125 |
|
|
Diluted |
|
|
22,210 |
|
|
|
13,637 |
|
|
|
13,634 |
|
|
|
13,542 |
|
|
|
13,496 |
|
|
|
15,773 |
|
|
|
13,458 |
|
|
Period end shares outstanding |
|
|
21,938 |
|
|
|
13,397 |
|
|
|
13,341 |
|
|
|
13,301 |
|
|
|
13,227 |
|
|
|
21,938 |
|
|
|
13,227 |
|
|
Book value per share |
|
$ |
32.04 |
|
|
$ |
24.49 |
|
|
$ |
23.98 |
|
|
$ |
23.46 |
|
|
$ |
23.20 |
|
|
$ |
32.04 |
|
|
$ |
23.20 |
|
|
Tangible book value per share(B) |
|
$ |
20.66 |
|
|
$ |
21.35 |
|
|
$ |
20.81 |
|
|
$ |
20.26 |
|
|
$ |
19.97 |
|
|
$ |
20.66 |
|
|
$ |
19.97 |
|
|
(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 10 of this Earnings Release. |
|
(C) |
Net interest margin represents net interest income divided by average interest-earning assets. |
|
(D) |
Non-GAAP financial measure. Excludes income recognized on acquisition accounting adjustments of $3.1 million, $0, $0, $33 thousand, $68 thousand, $3.1 million and $527 thousand, respectively. |
|
(E) |
Represents noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of securities. Additionally, taxes and provision for loan losses are not part of this calculation. |
6
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|||||||||||||||||||||||||||||||||
|
|
|
December 31, 2018 |
|
|
September 30, 2018 |
|
|
December 31, 2017 |
|
|||||||||||||||||||||||||||
|
|
|
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 |
|
$ |
3,639,390 |
|
|
$ |
53,272 |
|
|
|
5.81 |
% |
|
$ |
2,384,966 |
|
|
$ |
32,988 |
|
|
|
5.49 |
% |
|
$ |
2,209,389 |
|
|
$ |
29,747 |
|
|
|
5.34 |
% |
|
Securities |
|
|
336,974 |
|
|
|
2,289 |
|
|
|
2.70 |
% |
|
|
304,254 |
|
|
|
2,083 |
|
|
|
2.72 |
% |
|
|
322,539 |
|
|
|
2,108 |
|
|
|
2.59 |
% |
|
Deposits in other financial institutions and other |
|
|
132,281 |
|
|
|
742 |
|
|
|
2.23 |
% |
|
|
47,518 |
|
|
|
265 |
|
|
|
2.21 |
% |
|
|
47,257 |
|
|
|
183 |
|
|
|
1.54 |
% |
|
Total interest-earning assets |
|
|
4,108,645 |
|
|
$ |
56,303 |
|
|
|
5.44 |
% |
|
|
2,736,738 |
|
|
$ |
35,336 |
|
|
|
5.12 |
% |
|
|
2,579,185 |
|
|
$ |
32,038 |
|
|
|
4.93 |
% |
|
Allowance for loan losses |
|
|
(23,554 |
) |
|
|
|
|
|
|
|
|
|
|
(24,059 |
) |
|
|
|
|
|
|
|
|
|
|
(23,740 |
) |
|
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
564,934 |
|
|
|
|
|
|
|
|
|
|
|
276,997 |
|
|
|
|
|
|
|
|
|
|
|
267,611 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,650,025 |
|
|
|
|
|
|
|
|
|
|
$ |
2,989,676 |
|
|
|
|
|
|
|
|
|
|
$ |
2,823,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
325,046 |
|
|
$ |
920 |
|
|
|
1.12 |
% |
|
$ |
181,284 |
|
|
$ |
389 |
|
|
|
0.85 |
% |
|
$ |
214,498 |
|
|
$ |
252 |
|
|
|
0.47 |
% |
|
Money market and savings deposits |
|
|
942,764 |
|
|
|
2,447 |
|
|
|
1.03 |
% |
|
|
530,240 |
|
|
|
859 |
|
|
|
0.64 |
% |
|
|
599,977 |
|
|
|
740 |
|
|
|
0.49 |
% |
|
Certificates and other time deposits |
|
|
1,232,666 |
|
|
|
5,358 |
|
|
|
1.72 |
% |
|
|
896,253 |
|
|
|
4,051 |
|
|
|
1.79 |
% |
|
|
766,942 |
|
|
|
2,521 |
|
|
|
1.30 |
% |
|
Borrowed funds |
|
|
168,403 |
|
|
|
1,008 |
|
|
|
2.37 |
% |
|
|
234,776 |
|
|
|
1,272 |
|
|
|
2.15 |
% |
|
|
232,863 |
|
|
|
854 |
|
|
|
1.45 |
% |
|
Subordinated debt |
|
|
48,865 |
|
|
|
732 |
|
|
|
5.94 |
% |
|
|
48,805 |
|
|
|
729 |
|
|
|
5.93 |
% |
|
|
17,070 |
|
|
|
235 |
|
|
|
5.46 |
% |
|
Total interest-bearing liabilities |
|
|
2,717,744 |
|
|
$ |
10,465 |
|
|
|
1.53 |
% |
|
|
1,891,358 |
|
|
$ |
7,300 |
|
|
|
1.53 |
% |
|
|
1,831,350 |
|
|
$ |
4,602 |
|
|
|
1.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
1,215,589 |
|
|
|
|
|
|
|
|
|
|
|
761,935 |
|
|
|
|
|
|
|
|
|
|
|
675,643 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
19,389 |
|
|
|
|
|
|
|
|
|
|
|
10,179 |
|
|
|
|
|
|
|
|
|
|
|
9,717 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
3,952,722 |
|
|
|
|
|
|
|
|
|
|
|
2,663,472 |
|
|
|
|
|
|
|
|
|
|
|
2,516,710 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
697,303 |
|
|
|
|
|
|
|
|
|
|
|
326,204 |
|
|
|
|
|
|
|
|
|
|
|
306,346 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
4,650,025 |
|
|
|
|
|
|
|
|
|
|
$ |
2,989,676 |
|
|
|
|
|
|
|
|
|
|
$ |
2,823,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.91 |
% |
|
|
|
|
|
|
|
|
|
|
3.59 |
% |
|
|
|
|
|
|
|
|
|
|
3.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin(1) |
|
|
|
|
|
$ |
45,838 |
|
|
|
4.43 |
% |
|
|
|
|
|
$ |
28,036 |
|
|
|
4.06 |
% |
|
|
|
|
|
$ |
27,436 |
|
|
|
4.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax equivalent)(2) |
|
|
|
|
|
$ |
46,100 |
|
|
|
4.45 |
% |
|
|
|
|
|
$ |
28,292 |
|
|
|
4.10 |
% |
|
|
|
|
|
$ |
28,151 |
|
|
|
4.33 |
% |
7
Financial Highlights
(Unaudited)
|
|
|
Years Ended December 31, |
|
|||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
||||||||||||||||||
|
|
|
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 |
|
$ |
2,652,355 |
|
|
$ |
148,223 |
|
|
|
5.59 |
% |
|
$ |
2,081,370 |
|
|
$ |
110,331 |
|
|
|
5.30 |
% |
|
Securities |
|
|
317,329 |
|
|
|
8,527 |
|
|
|
2.69 |
% |
|
|
324,926 |
|
|
|
8,445 |
|
|
|
2.60 |
% |
|
Deposits in other financial institutions |
|
|
70,145 |
|
|
|
1,473 |
|
|
|
2.10 |
% |
|
|
50,917 |
|
|
|
662 |
|
|
|
1.30 |
% |
|
Total interest-earning assets |
|
|
3,039,829 |
|
|
$ |
158,223 |
|
|
|
5.21 |
% |
|
|
2,457,213 |
|
|
$ |
119,438 |
|
|
|
4.86 |
% |
|
Allowance for loan losses |
|
|
(24,077 |
) |
|
|
|
|
|
|
|
|
|
|
(20,536 |
) |
|
|
|
|
|
|
|
|
|
Noninterest-earning assets |
|
|
349,408 |
|
|
|
|
|
|
|
|
|
|
|
262,549 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,365,160 |
|
|
|
|
|
|
|
|
|
|
$ |
2,699,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
224,210 |
|
|
$ |
1,834 |
|
|
|
0.82 |
% |
|
$ |
156,527 |
|
|
$ |
597 |
|
|
|
0.38 |
% |
|
Money market and savings deposits |
|
|
637,722 |
|
|
|
4,644 |
|
|
|
0.73 |
% |
|
|
536,415 |
|
|
|
2,562 |
|
|
|
0.48 |
% |
|
Certificates and other time deposits |
|
|
940,356 |
|
|
|
15,478 |
|
|
|
1.65 |
% |
|
|
748,086 |
|
|
|
9,060 |
|
|
|
1.21 |
% |
|
Borrowed funds |
|
|
240,952 |
|
|
|
4,788 |
|
|
|
1.99 |
% |
|
|
269,633 |
|
|
|
2,922 |
|
|
|
1.08 |
% |
|
Subordinated debt |
|
|
48,776 |
|
|
|
2,900 |
|
|
|
5.95 |
% |
|
|
11,208 |
|
|
|
629 |
|
|
|
5.61 |
% |
|
Total interest-bearing liabilities |
|
|
2,092,016 |
|
|
$ |
29,644 |
|
|
|
1.42 |
% |
|
|
1,721,869 |
|
|
$ |
15,770 |
|
|
|
0.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits |
|
|
848,276 |
|
|
|
|
|
|
|
|
|
|
|
672,101 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
11,427 |
|
|
|
|
|
|
|
|
|
|
|
7,629 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
2,951,719 |
|
|
|
|
|
|
|
|
|
|
|
2,401,599 |
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
413,441 |
|
|
|
|
|
|
|
|
|
|
|
297,627 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,365,160 |
|
|
|
|
|
|
|
|
|
|
$ |
2,699,226 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest rate spread |
|
|
|
|
|
|
|
|
|
|
3.79 |
% |
|
|
|
|
|
|
|
|
|
|
3.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin |
|
|
|
|
|
$ |
128,579 |
|
|
|
4.23 |
% |
|
|
|
|
|
$ |
103,668 |
|
|
|
4.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and margin (tax equivalent) |
|
|
|
|
|
$ |
129,652 |
|
|
|
4.27 |
% |
|
|
|
|
|
$ |
106,669 |
|
|
|
4.34 |
% |
8
Financial Highlights
(Unaudited)
|
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
||||||||||||||
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|||||
|
|
|
(Dollars in thousands) |
|
|||||||||||||||||
|
Period-end Loan Portfolio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
702,037 |
|
|
$ |
458,434 |
|
|
$ |
452,307 |
|
|
$ |
447,168 |
|
|
$ |
457,129 |
|
|
Mortgage warehouse |
|
|
48,274 |
|
|
|
48,876 |
|
|
|
51,552 |
|
|
|
41,572 |
|
|
|
69,456 |
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
1,650,912 |
|
|
|
1,161,992 |
|
|
|
1,134,903 |
|
|
|
1,108,537 |
|
|
|
1,080,247 |
|
|
Commercial real estate construction and land development |
|
|
430,128 |
|
|
|
298,916 |
|
|
|
270,965 |
|
|
|
257,566 |
|
|
|
243,389 |
|
|
1-4 family residential (including home equity) |
|
|
649,311 |
|
|
|
344,342 |
|
|
|
330,053 |
|
|
|
317,842 |
|
|
|
301,219 |
|
|
Residential construction |
|
|
186,411 |
|
|
|
117,740 |
|
|
|
109,962 |
|
|
|
108,882 |
|
|
|
109,116 |
|
|
Consumer and other |
|
|
41,233 |
|
|
|
10,626 |
|
|
|
8,933 |
|
|
|
8,927 |
|
|
|
10,320 |
|
|
Total loans |
|
$ |
3,708,306 |
|
|
$ |
2,440,926 |
|
|
$ |
2,358,675 |
|
|
$ |
2,290,494 |
|
|
$ |
2,270,876 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
32,953 |
|
|
$ |
14,943 |
|
|
$ |
12,137 |
|
|
$ |
13,373 |
|
|
$ |
13,328 |
|
|
Accruing loans 90 or more days past due |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total nonperforming loans |
|
|
32,953 |
|
|
|
14,943 |
|
|
|
12,137 |
|
|
|
13,373 |
|
|
|
13,328 |
|
|
Other real estate |
|
|
630 |
|
|
|
1,801 |
|
|
|
1,710 |
|
|
|
365 |
|
|
|
365 |
|
|
Other repossessed assets |
|
|
— |
|
|
|
205 |
|
|
|
740 |
|
|
|
443 |
|
|
|
205 |
|
|
Total nonperforming assets |
|
$ |
33,583 |
|
|
$ |
16,949 |
|
|
$ |
14,587 |
|
|
$ |
14,181 |
|
|
$ |
13,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs (recoveries) |
|
$ |
219 |
|
|
$ |
245 |
|
|
$ |
1,428 |
|
|
$ |
(326 |
) |
|
$ |
2,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
|
$ |
10,861 |
|
|
$ |
6,258 |
|
|
$ |
5,983 |
|
|
$ |
6,153 |
|
|
$ |
6,437 |
|
|
Mortgage warehouse |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate (including multi-family residential) |
|
|
17,776 |
|
|
|
5,006 |
|
|
|
4,917 |
|
|
|
6,466 |
|
|
|
6,110 |
|
|
Commercial real estate construction and land development |
|
|
974 |
|
|
|
694 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
1-4 family residential (including home equity) |
|
|
3,201 |
|
|
|
2,985 |
|
|
|
1,237 |
|
|
|
754 |
|
|
|
781 |
|
|
Residential construction |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Consumer and other |
|
|
141 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Total nonaccrual loans |
|
$ |
32,953 |
|
|
$ |
14,943 |
|
|
$ |
12,137 |
|
|
$ |
13,373 |
|
|
$ |
13,328 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
|
0.72 |
% |
|
|
0.56 |
% |
|
|
0.49 |
% |
|
|
0.49 |
% |
|
|
0.49 |
% |
|
Nonperforming loans to total loans |
|
|
0.89 |
% |
|
|
0.61 |
% |
|
|
0.51 |
% |
|
|
0.58 |
% |
|
|
0.59 |
% |
|
Allowance for loan losses to nonperforming loans |
|
|
79.90 |
% |
|
|
157.84 |
% |
|
|
196.35 |
% |
|
|
184.16 |
% |
|
|
177.44 |
% |
|
Allowance for loan losses to total loans |
|
|
0.71 |
% |
|
|
0.97 |
% |
|
|
1.01 |
% |
|
|
1.08 |
% |
|
|
1.04 |
% |
|
Net charge-offs (recoveries) to average loans (annualized) |
|
|
0.02 |
% |
|
|
0.04 |
% |
|
|
0.25 |
% |
|
(0.06)% |
|
|
|
0.36 |
% |
|
9
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. Allegiance believes 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 and the ratio of tangible 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. 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 |
|
|
Years Ended |
|
||||||||||||||||||||||
|
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
||||||||||||||||
|
|
|
December 31 |
|
|
September 30 |
|
|
June 30 |
|
|
March 31 |
|
|
December 31 |
|
|
December 31 |
|
|
December 31 |
|
|||||||
|
|
|
(Dollars and share amounts in thousands, except per share data) |
|
|||||||||||||||||||||||||
|
Total Shareholders' equity |
|
$ |
702,984 |
|
|
$ |
328,131 |
|
|
$ |
319,888 |
|
|
$ |
311,988 |
|
|
$ |
306,865 |
|
|
$ |
702,984 |
|
|
$ |
306,865 |
|
|
Less: Goodwill and core deposit intangibles, net |
|
|
249,712 |
|
|
|
42,077 |
|
|
|
42,272 |
|
|
|
42,468 |
|
|
|
42,663 |
|
|
|
249,712 |
|
|
|
42,663 |
|
|
Tangible shareholders’ equity |
|
$ |
453,272 |
|
|
$ |
286,054 |
|
|
$ |
277,616 |
|
|
$ |
269,520 |
|
|
$ |
264,202 |
|
|
$ |
453,272 |
|
|
$ |
264,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding at end of period |
|
|
21,938 |
|
|
|
13,397 |
|
|
|
13,341 |
|
|
|
13,301 |
|
|
|
13,227 |
|
|
|
21,938 |
|
|
|
13,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share |
|
$ |
20.66 |
|
|
$ |
21.35 |
|
|
$ |
20.81 |
|
|
$ |
20.26 |
|
|
$ |
19.97 |
|
|
$ |
20.66 |
|
|
$ |
19.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
13,163 |
|
|
$ |
8,879 |
|
|
$ |
7,556 |
|
|
$ |
7,711 |
|
|
$ |
3,204 |
|
|
$ |
37,309 |
|
|
$ |
17,632 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity |
|
$ |
697,303 |
|
|
$ |
326,204 |
|
|
$ |
317,408 |
|
|
$ |
309,545 |
|
|
$ |
306,346 |
|
|
$ |
413,441 |
|
|
$ |
297,627 |
|
|
Less: Average goodwill and core deposit intangibles, net |
|
|
249,252 |
|
|
|
42,203 |
|
|
|
42,393 |
|
|
|
42,589 |
|
|
|
42,758 |
|
|
|
80,384 |
|
|
|
43,050 |
|
|
Average tangible shareholders’ equity |
|
$ |
448,051 |
|
|
$ |
284,001 |
|
|
$ |
275,015 |
|
|
$ |
266,954 |
|
|
$ |
263,588 |
|
|
$ |
333,057 |
|
|
$ |
254,577 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity |
|
|
11.66 |
% |
|
|
12.40 |
% |
|
|
11.02 |
% |
|
|
11.71 |
% |
|
|
4.82 |
% |
|
|
11.20 |
% |
|
|
6.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,655,249 |
|
|
$ |
3,035,539 |
|
|
$ |
2,966,426 |
|
|
$ |
2,886,484 |
|
|
$ |
2,860,231 |
|
|
$ |
4,655,249 |
|
|
$ |
2,860,231 |
|
|
Less: Goodwill and core deposit intangibles, net |
|
|
249,712 |
|
|
|
42,077 |
|
|
|
42,272 |
|
|
|
42,468 |
|
|
|
42,663 |
|
|
|
249,712 |
|
|
|
42,663 |
|
|
Tangible assets |
|
$ |
4,405,537 |
|
|
$ |
2,993,462 |
|
|
$ |
2,924,154 |
|
|
$ |
2,844,016 |
|
|
$ |
2,817,568 |
|
|
$ |
4,405,537 |
|
|
$ |
2,817,568 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets |
|
|
10.29 |
% |
|
|
9.56 |
% |
|
|
9.49 |
% |
|
|
9.48 |
% |
|
|
9.38 |
% |
|
|
10.29 |
% |
|
|
9.38 |
% |
10