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Section 1: 8-K (8-K)

abtx-8k_20191025.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): October 25, 2019

Allegiance Bancshares, Inc.

(Exact Name of Registrant as Specified in Charter)

TEXAS

001-37585

26-3564100

(State or Other Jurisdiction of Incorporation)

(Commission File Number)

(I.R.S. Employer Identification Number)

8847 West Sam Houston Parkway N., Suite 200, Houston, Texas 77040

(Address of Principal Executive Offices) (Zip Code)

(281) 894-3200

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[   ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[   ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $1.00 per share

 

ABTX

 

NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities

Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company  

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act.  ☒

 

 


 

Item 2.02. Results of Operations and Financial Condition.

On October 25, 2019, Allegiance Bancshares, Inc., the holding company of Allegiance Bank, issued a press release announcing its financial results for the third quarter 2019.  A copy of the press release, as well as a copy of the accompanying earnings presentation, are furnished as Exhibit 99.1 and Exhibit 99.2 hereto, respectively, and incorporated herein by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02, Exhibit 99.1 and Exhibit 99.2 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)           Exhibits. The following are furnished as exhibits to this Current Report on Form 8-K:

 

Exhibit Number

Description of Exhibit

99.1

Press Release issued by Allegiance Bancshares, Inc. dated October 25, 2019

99.2

Third Quarter 2019 Earnings Presentation dated October 25, 2019

 

 


 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Allegiance Bancshares, Inc.

 

 

 

Date: October 25, 2019

By:

/s/ George Martinez

 

 

George Martinez

 

 

Chairman and Chief Executive Officer

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

abtx-ex991_188.htm

Exhibit 99.1

PRESS RELEASE

Allegiance Bancshares, Inc.

8847 West Sam Houston Parkway N., Suite 200

Houston, Texas 77040

[email protected]

ALLEGIANCE BANCSHARES, INC. REPORTS

THIRD QUARTER 2019 RESULTS

 

HOUSTON, October 25, 2019 - Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $12.0 million and diluted earnings per share of $0.57 for the third quarter 2019 compared to net income of $8.9 million and diluted earnings per share of $0.65 for the third quarter 2018.  The third quarter 2019 included $1.4 million of pre-tax severance expense.  Net income for the nine months ended September 30, 2019 was $39.0 million, or $1.81 per diluted share, compared to net income of $24.1 million, or $1.77 per diluted share, for the nine months ended September 30, 2018.  The nine months ended September 30, 2019 results included $1.4 million of pre-tax severance expense and $1.3 million of pre-tax acquisition and merger-related expenses. The nine months ended September 30, 2018 results included $821 thousand of pre-tax acquisition and merger-related expenses.

 

“The third quarter was very productive for us and culminated with the completion of a $60 million subordinated debt offering,” said George Martinez, Allegiance’s Chairman and Chief Executive Officer.  “Securing this attractive capital, positions us well for future growth,” continued Martinez.

 

“We are dedicated to taking great care of our customers by building on long-lasting relationships as we help them reach their financial goals.  We are also keenly focused on developing new customer relationships and adding to our market share.  Our personalized service to all of our customers is what will continue to set us apart as the premier bank in the Houston region and what will continue to drive our long-term financial success. We are in a tremendous position of strength and are encouraged about our prospects for the remainder of the year as we work to leverage our talent and capital to produce improved returns for our shareholders,” concluded Martinez.

 

Third Quarter 2019 Results

 

Net interest income before the provision for loan losses in the third quarter 2019 increased $16.8 million, or 59.9%, to $44.8 million from $28.0 million for the third quarter 2018 primarily due to a $1.55 billion, or 56.6%, increase in average interest-earning assets for the same period.  This increase was mainly due to the Post Oak Bancshares, Inc. acquisition during the fourth quarter of 2018 as well as organic growth for the year-over-year period.  Net interest income before provision for loan losses for the third quarter 2019 decreased from $45.6 million in the second quarter 2019.  The net interest margin on a tax equivalent basis increased 6 basis points to 4.16% for the third quarter 2019 from 4.10% for the third quarter 2018 and decreased 17 basis points from 4.33% for the second quarter 2019. Core net interest margin on a tax equivalent basis excludes the impact of acquisition accounting adjustments and was 3.97% for the third quarter 2019 compared to 4.07% for the second quarter 2019. Please refer to the non-GAAP reconciliation on page 10.  

 

Noninterest income for the third quarter 2019 was $2.9 million, an increase of $961 thousand, or 49.8%, compared to $1.9 million for the third quarter 2018 and decreased $956 thousand, or 24.9%, compared to $3.8 million for the second quarter 2019.  Noninterest income for the second quarter 2019 included $846 thousand of gain on the sale of securities.  

 

Noninterest expense for the third quarter 2019 increased $10.8 million, or 56.6%, to $30.0 million from $19.2 million for the third quarter 2018, and decreased slightly compared to the second quarter 2019. The increase over the prior year quarter was primarily due to additional expenses associated with increased headcount and bank offices from the Post Oak acquisition. Additionally, the third quarter 2019 included $1.4 million of severance expense partially offset by a $676 thousand FDIC Small Bank Assessment Credit.

 

In the third quarter 2019, Allegiance’s efficiency ratio was 62.88% compared to 61.93% for the second quarter 2019 and 63.95% for the third quarter 2018.  Third quarter 2019 annualized returns on average assets, average equity and average tangible equity were 0.98%, 6.73% and 10.33%, respectively, compared to 1.19%, 8.10% and 12.52%, respectively, for the second quarter 2019.  

1


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.

 

Nine Months Ended September 30, 2019 Results

 

Net interest income before provision for loan losses for the nine months ended September 30, 2019 increased $52.3 million, or 63.2%, to $135.0 million from $82.7 million for the nine months ended September 30, 2018 primarily due to a $1.56 billion, or 58.4%, 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 increased 10 basis points to 4.27% for the nine months ended September 30, 2019 from 4.17% for the nine months ended September 30, 2018. Core net interest margin on a tax equivalent basis for the nine months ended September 30, 2019 would have been 4.02%, compared to 4.17% for the nine months ended September 30, 2018. Please refer to the non-GAAP reconciliation on page 10.  

 

Noninterest income for the nine months ended September 30, 2019 was $10.0 million, an increase of $4.6 million, or 86.3%, compared to $5.4 million for the nine months ended September 30, 2018 due primarily to additional noninterest income resulting from the Post Oak acquisition along with the gain on sale of securities.

 

Noninterest expense for the nine months ended September 30, 2019 increased $33.5 million, or 58.0%, to $91.2 million from $57.7 million for the nine months ended September 30, 2018. The increase in noninterest expense over the nine months ended September 30, 2018 was primarily due to additional expenses associated with increased headcount and bank offices along with merger-related expenses from the Post Oak acquisition. Additionally, the nine months ended 2019 included $1.4 million of severance expense partially offset by a $676 thousand FDIC Small Bank Assessment Credit.

 

Allegiance’s efficiency ratio decreased from 65.52% for the nine months ended September 30, 2018 to 63.25% for the nine months ended September 30, 2019. For the nine months ended September 30, 2019, returns on average assets, average equity and average tangible equity were 1.09%, 7.36% and 11.35%, respectively, compared to 1.10%, 10.16% and 11.72%, respectively, for the nine months ended September 30, 2018.

 

Financial Condition

 

Total assets at September 30, 2019 increased $111.6 million to $4.91 billion compared to $4.79 billion at June 30, 2019 and increased $1.87 billion compared to $3.04 billion at September 30, 2018, primarily due to the Post Oak acquisition and organic loan growth.

 

Total loans at September 30, 2019 increased $28.0 million, or 2.9% (annualized), to $3.89 billion compared to $3.86 billion at June 30, 2019 and increased $1.45 billion, or 59.2%, 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 $37.6 million, or 4.0% (annualized), to $3.85 billion at September 30, 2019 from $3.81 billion at June 30, 2019 and increased $1.46 billion, or 60.9%, from $2.39 billion at September 30, 2018.  Excluding loans acquired from Post Oak at acquisition of $1.16 billion, core loans at September 30, 2019 increased $297.4 million, from September 30, 2018.

 

Deposits at September 30, 2019 increased $36.8 million, or 3.8% (annualized), to $3.90 billion compared to $3.86 billion at June 30, 2019 and increased $1.46 billion, or 60.1%, compared to $2.43 billion at September 30, 2018, primarily related to the Post Oak acquisition.

 

Asset Quality

 

Nonperforming assets totaled $42.9 million, or 0.88% of total assets, at September 30, 2019, compared to $37.7 million, or 0.79%, of total assets, at June 30, 2019, and $16.9 million, or 0.56% of total assets, at September 30, 2018. The allowance for loan losses was 0.77% of total loans at September 30, 2019, 0.72% of total loans at June 30, 2019 and 0.97% of total loans at September 30, 2018. The decrease in the allowance for loan losses as a percentage of loans from September 30, 2018 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 third quarter 2019 was $2.6 million, or 0.27% (annualized) of average loans, compared to $1.4 million, or 0.15% (annualized) of average loans, for the second quarter 2019.

 

Third quarter 2019 net charge-offs were $729 thousand, or 0.07% (annualized) of average loans, compared to net charge-offs of $590 thousand, or 0.06% (annualized) of average loans, for the second quarter 2019 and $245 thousand, or 0.04% (annualized) of average loans, for the third quarter 2018. Net charge-offs for the nine months ended September 30, 2019 were $1.5 million, or 0.18% (annualized) of average loans, compared to net charge-offs for the nine months ended September 30, 2018 of $1.3 million, or 0.08% (annualized) of average loans.

 

2


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, October 25, 2019 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its third quarter 2019 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 1986475.  Alternatively, a simultaneous audio-only webcast may be accessed via the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Upcoming Events. If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under News and Events, Event Calendar, Past Events.

 

Allegiance Bancshares, Inc.

 

As of September 30, 2019, Allegiance was a $4.91 billion asset Houston, Texas-based bank holding company. Through its wholly owned subsidiary, Allegiance Bank, Allegiance provides a diversified range of commercial banking services primarily to small to medium-sized businesses and individual customers in the Houston region. Allegiance’s super-community banking strategy was designed to foster strong customer relationships while benefiting from a platform and scale that is competitive with larger local and regional banks.  As of September 30, 2019, Allegiance Bank operated 27 full-service banking locations in the Houston region, which we define as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur metropolitan statistical areas, with 26 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, 2018 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


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

2019

 

 

2018

 

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

 

(Dollars in thousands)

 

Cash and cash equivalents

 

$

300,619

 

 

$

232,607

 

 

$

258,843

 

 

$

268,947

 

 

$

191,468

 

Available for sale securities

 

 

353,000

 

 

 

348,173

 

 

 

345,716

 

 

 

337,293

 

 

 

300,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total loans

 

 

3,886,004

 

 

 

3,857,963

 

 

 

3,806,161

 

 

 

3,708,306

 

 

 

2,440,926

 

Allowance for loan losses

 

 

(29,808

)

 

 

(27,940

)

 

 

(27,123

)

 

 

(26,331

)

 

 

(23,586

)

Loans, net

 

 

3,856,196

 

 

 

3,830,023

 

 

 

3,779,038

 

 

 

3,681,975

 

 

 

2,417,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

223,642

 

 

 

223,642

 

 

 

223,642

 

 

 

223,125

 

 

 

39,389

 

Core deposit intangibles, net

 

 

23,053

 

 

 

24,231

 

 

 

25,409

 

 

 

26,587

 

 

 

2,688

 

Premises and equipment, net

 

 

67,175

 

 

 

59,690

 

 

 

60,327

 

 

 

41,717

 

 

 

18,970

 

Other real estate owned

 

 

8,333

 

 

 

6,294

 

 

 

1,152

 

 

 

630

 

 

 

1,801

 

Bank owned life insurance

 

 

26,947

 

 

 

26,794

 

 

 

26,639

 

 

 

26,480

 

 

 

22,838

 

Other assets

 

 

46,875

 

 

 

42,757

 

 

 

48,036

 

 

 

48,495

 

 

 

40,930

 

Total assets

 

$

4,905,840

 

 

$

4,794,211

 

 

$

4,768,802

 

 

$

4,655,249

 

 

$

3,035,539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

1,227,839

 

 

$

1,173,423

 

 

$

1,181,920

 

 

$

1,209,300

 

 

$

789,705

 

Interest-bearing deposits

 

 

2,669,646

 

 

 

2,687,217

 

 

 

2,598,141

 

 

 

2,453,236

 

 

 

1,644,086

 

Total deposits

 

 

3,897,485

 

 

 

3,860,640

 

 

 

3,780,061

 

 

 

3,662,536

 

 

 

2,433,791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowed funds

 

 

159,501

 

 

 

146,998

 

 

 

201,995

 

 

 

225,493

 

 

 

211,569

 

Subordinated debt

 

 

107,771

 

 

 

49,019

 

 

 

48,959

 

 

 

48,899

 

 

 

48,839

 

Other liabilities

 

 

34,775

 

 

 

32,853

 

 

 

34,010

 

 

 

15,337

 

 

 

13,209

 

Total liabilities

 

 

4,199,532

 

 

 

4,089,510

 

 

 

4,065,025

 

 

 

3,952,265

 

 

 

2,707,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

20,737

 

 

 

21,147

 

 

 

21,484

 

 

 

21,938

 

 

 

13,397

 

Capital surplus

 

 

529,688

 

 

 

541,979

 

 

 

556,184

 

 

 

571,803

 

 

 

221,762

 

Retained earnings

 

 

149,389

 

 

 

137,342

 

 

 

123,094

 

 

 

112,131

 

 

 

98,968

 

Accumulated other comprehensive

   income (loss)

 

 

6,494

 

 

 

4,233

 

 

 

3,015

 

 

 

(2,888

)

 

 

(5,996

)

Total shareholders’ equity

 

 

706,308

 

 

 

704,701

 

 

 

703,777

 

 

 

702,984

 

 

 

328,131

 

Total liabilities and equity

 

$

4,905,840

 

 

$

4,794,211

 

 

$

4,768,802

 

 

$

4,655,249

 

 

$

3,035,539

 

 

4


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

Three Months Ended

 

 

Year-to-Date

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

September 30

 

 

September 30

 

 

 

(Dollars in thousands, except per share data)

 

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Loans, including fees

 

$

55,790

 

 

$

56,016

 

 

$

54,189

 

 

$

53,272

 

 

$

32,988

 

 

$

165,995

 

 

$

94,951

 

   Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

 

 

 

 

 

      Taxable

 

 

2,090

 

 

 

1,837

 

 

 

982

 

 

 

844

 

 

 

636

 

 

 

4,909

 

 

 

1,881

 

      Tax-exempt

 

 

483

 

 

 

692

 

 

 

1,290

 

 

 

1,445

 

 

 

1,447

 

 

 

2,465

 

 

 

4,357

 

   Deposits in other financial

      institutions

 

 

302

 

 

 

401

 

 

 

688

 

 

 

742

 

 

 

265

 

 

 

1,391

 

 

 

731

 

         Total interest income

 

 

58,665

 

 

 

58,946

 

 

 

57,149

 

 

 

56,303

 

 

 

35,336

 

 

 

174,760

 

 

 

101,920

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Demand, money market and

      savings deposits

 

 

4,975

 

 

 

4,513

 

 

 

3,728

 

 

 

3,367

 

 

 

1,248

 

 

 

13,216

 

 

 

3,111

 

   Certificates and other time

      deposits

 

 

6,909

 

 

 

7,008

 

 

 

6,256

 

 

 

5,358

 

 

 

4,051

 

 

 

20,173

 

 

 

10,120

 

   Borrowed funds

 

 

1,183

 

 

 

1,118

 

 

 

1,827

 

 

 

1,008

 

 

 

1,272

 

 

 

4,128

 

 

 

3,780

 

   Subordinated debt

 

 

761

 

 

 

736

 

 

 

735

 

 

 

732

 

 

 

729

 

 

 

2,232

 

 

 

2,168

 

         Total interest expense

 

 

13,828

 

 

 

13,375

 

 

 

12,546

 

 

 

10,465

 

 

 

7,300

 

 

 

39,749

 

 

 

19,179

 

NET INTEREST INCOME

 

 

44,837

 

 

 

45,571

 

 

 

44,603

 

 

 

45,838

 

 

 

28,036

 

 

 

135,011

 

 

 

82,741

 

Provision for loan losses

 

 

2,597

 

 

 

1,407

 

 

 

1,002

 

 

 

2,964

 

 

 

 

 

 

5,006

 

 

 

1,284

 

Net interest income after provision

   for loan losses

 

 

42,240

 

 

 

44,164

 

 

 

43,601

 

 

 

42,874

 

 

 

28,036

 

 

 

130,005

 

 

 

81,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonsufficient funds fees

 

 

168

 

 

 

139

 

 

 

162

 

 

 

190

 

 

 

175

 

 

 

469

 

 

 

565

 

   Service charges on deposit

      accounts

 

 

379

 

 

 

365

 

 

 

325

 

 

 

363

 

 

 

177

 

 

 

1,069

 

 

 

506

 

   Gain on sale of securities

 

 

 

 

 

846

 

 

 

 

 

 

 

 

 

 

 

 

846

 

 

 

   Gain (loss) on sales of other real

      estate and repossessed assets

 

 

 

 

 

70

 

 

 

1

 

 

 

(429

)

 

 

 

 

 

71

 

 

 

1

 

   Bank owned life insurance

 

 

153

 

 

 

155

 

 

 

159

 

 

 

163

 

 

 

137

 

 

 

467

 

 

 

416

 

   Rebate from correspondent bank

 

 

900

 

 

 

884

 

 

 

896

 

 

 

988

 

 

 

613

 

 

 

2,680

 

 

 

1,621

 

   Other

 

 

1,289

 

 

 

1,386

 

 

 

1,746

 

 

 

1,059

 

 

 

826

 

 

 

4,421

 

 

 

2,270

 

      Total noninterest income

 

 

2,889

 

 

 

3,845

 

 

 

3,289

 

 

 

2,334

 

 

 

1,928

 

 

 

10,023

 

 

 

5,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Salaries and employee benefits

 

 

20,221

 

 

 

19,415

 

 

 

19,684

 

 

 

18,167

 

 

 

12,965

 

 

 

59,320

 

 

 

38,537

 

   Net occupancy and equipment

 

 

1,973

 

 

 

2,088

 

 

 

2,078

 

 

 

1,959

 

 

 

1,281

 

 

 

6,139

 

 

 

3,886

 

   Depreciation

 

 

822

 

 

 

756

 

 

 

753

 

 

 

802

 

 

 

490

 

 

 

2,331

 

 

 

1,330

 

   Data processing and software

      amortization

 

 

2,058

 

 

 

1,735

 

 

 

1,597

 

 

 

1,485

 

 

 

1,226

 

 

 

5,390

 

 

 

3,635

 

   Professional fees

 

 

667

 

 

 

527

 

 

 

599

 

 

 

670

 

 

 

303

 

 

 

1,793

 

 

 

1,339

 

   Regulatory assessments and

      FDIC insurance

 

 

(41

)

 

 

802

 

 

 

728

 

 

 

776

 

 

 

505

 

 

 

1,489

 

 

 

1,533

 

   Core deposit intangibles

      amortization

 

 

1,178

 

 

 

1,178

 

 

 

1,178

 

 

 

1,229

 

 

 

195

 

 

 

3,534

 

 

 

586

 

   Communications

 

 

455

 

 

 

468

 

 

 

430

 

 

 

416

 

 

 

262

 

 

 

1,353

 

 

 

769

 

   Advertising

 

 

449

 

 

 

617

 

 

 

704

 

 

 

704

 

 

 

351

 

 

 

1,770

 

 

 

1,021

 

   Acquisition and merger-related

      expenses

 

 

 

 

 

153

 

 

 

1,173

 

 

 

840

 

 

 

196

 

 

 

1,326

 

 

 

821

 

   Other

 

 

2,227

 

 

 

2,341

 

 

 

2,191

 

 

 

1,998

 

 

 

1,390

 

 

 

6,759

 

 

 

4,284

 

      Total noninterest expense

 

 

30,009

 

 

 

30,080

 

 

 

31,115

 

 

 

29,046

 

 

 

19,164

 

 

 

91,204

 

 

 

57,741

 

INCOME BEFORE INCOME TAXES

 

 

15,120

 

 

 

17,929

 

 

 

15,775

 

 

 

16,162

 

 

 

10,800

 

 

 

48,824

 

 

 

29,095

 

   Provision for income taxes

 

 

3,073

 

 

 

3,681

 

 

 

3,097

 

 

 

2,999

 

 

 

1,921

 

 

 

9,851

 

 

 

4,949

 

NET INCOME

 

$

12,047

 

 

$

14,248

 

 

$

12,678

 

 

$

13,163

 

 

$

8,879

 

 

$

38,973

 

 

$

24,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

0.57

 

 

$

0.67

 

 

$

0.58

 

 

$

0.60

 

 

$

0.66

 

 

$

1.83

 

 

$

1.81

 

   Diluted

 

$

0.57

 

 

$

0.66

 

 

$

0.58

 

 

$

0.59

 

 

$

0.65

 

 

$

1.81

 

 

$

1.77

 

5


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

Three Months Ended

 

 

Year-to-Date

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

September 30

 

 

June 30

 

 

March 31

 

 

December 31

 

 

September 30

 

 

September 30

 

 

September 30

 

 

 

(Dollars and share amounts in thousands, except per share data)

 

Net income

 

$

12,047

 

 

$

14,248

 

 

$

12,678

 

 

$

13,163

 

 

$

8,879

 

 

$

38,973

 

 

$

24,146

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, basic

 

$

0.57

 

 

$

0.67

 

 

$

0.58

 

 

$

0.60

 

 

$

0.66

 

 

$

1.83

 

 

$

1.81

 

Earnings per share, diluted

 

$

0.57

 

 

$

0.66

 

 

$

0.58

 

 

$

0.59

 

 

$

0.65

 

 

$

1.81

 

 

$

1.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(A)

 

 

0.98

%

 

 

1.19

%

 

 

1.08

%

 

 

1.12

%

 

 

1.18

%

 

 

1.09

%

 

 

1.10

%

Return on average equity(A)

 

 

6.73

%

 

 

8.10

%

 

 

7.27

%

 

 

7.49

%

 

 

10.80

%

 

 

7.36

%

 

 

10.16

%

Return on average tangible

   equity(A)(B)

 

 

10.33

%

 

 

12.52

%

 

 

11.22

%

 

 

11.66

%

 

 

12.40

%

 

 

11.35

%

 

 

11.72

%

Net interest margin

   (tax equivalent)(C)

 

 

4.16

%

 

 

4.33

%

 

 

4.31

%

 

 

4.45

%

 

 

4.10

%

 

 

4.27

%

 

 

4.17

%

Core net interest margin

   (tax equivalent)(B)

 

 

3.97

%

 

 

4.07

%

 

 

4.03

%

 

 

4.16

%

 

 

4.10

%

 

 

4.02

%

 

 

4.17

%

Efficiency ratio(D)

 

 

62.88

%

 

 

61.93

%

 

 

64.97

%

 

 

60.30

%

 

 

63.95

%

 

 

63.25

%

 

 

65.52

%