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Section 1: 8-K (8-K)

abtx-8k_20200430.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): April 30, 2020

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 April 30, 2020, Allegiance Bancshares, Inc., the holding company of Allegiance Bank, issued a press release announcing its financial results for the first quarter 2020.  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 April 30, 2020

99.2

First Quarter 2020 Earnings Presentation dated April 30, 2020

 

 


 

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: April 30, 2020

By:

/s/ Steve Retzloff

 

 

Steve Retzloff

 

 

Chief Executive Officer

 

 

(Back To Top)

Section 2: EX-99.1 (EX-99.1)

abtx-ex991_8.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

FIRST QUARTER 2020 RESULTS

 

 

Promptly supported customers, employees and community with proactive response to the COVID-19 pandemic

 

 

Approved more than 3,500 loans in excess of $640 million within the Small Business Administration Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) through April 26, 2020

 

 

Surpassed $5 billion in assets, further bolstering market position as the largest community bank exclusively focused on the Houston region

 

 

Net interest margin increased to 4.15% for the first quarter 2020 from 4.11% for the fourth quarter 2019

 

 

Declared quarterly dividend of $0.10 per share of common stock

 

HOUSTON, April 30, 2020 - Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the holding company of Allegiance Bank (the "Bank"), today reported net income of $3.5 million and diluted earnings per share of $0.17 for the first quarter 2020 compared to net income of $12.7 million and diluted earnings per share of $0.58 for the first quarter 2019.  The first quarter 2020 results were primarily driven by the increased provision expense in response to COVID-19-related uncertainties in the current economic environment and write-downs in other real estate owned.  

 

“While first quarter earnings were negatively impacted by the broader economic risks and uncertainties relating to the COVID-19 pandemic, the true story for the quarter was the phenomenal effort and execution of our entire team at Allegiance Bank under unprecedented conditions” said Steve Retzloff, Allegiance’s Chief Executive Officer. “We enter the second quarter very well-positioned to navigate potential challenges related to the evolving COVID-19 and economic situation.   Our capital is very strong, our loan portfolio is granular and well-collateralized, and our people remain dedicated to providing extraordinary service to our customers, albeit remotely when appropriate,” commented Retzloff.  

 

“Our pre-existing pandemic response plan enabled us to quickly respond to the situation and fulfill our commitment to providing a safe environment for our customers and employees.  Implementation strategies have included social distancing, acquisition of a pre-arranged supply of laptops that allow for an extensive work-from-home program, drive-thru only service, evaluating and responding to customer needs and a more recent show of strength as we processed thousands of Paycheck Protection Program applications for both existing and new customers.  The extraordinary dedication of our employees has been remarkable,” continued Retzloff.

 

First Quarter 2020 Results

 

Net interest income before the provision for loan losses in the first quarter 2020 increased $422 thousand, or 0.9%, to $45.0 million from $44.6 million for the first quarter 2019 and from $44.5 million in the fourth quarter 2019.  These increases were primarily due to changes in the volume and relative mix of the underlying assets and liabilities as well as lower costs related to interest-bearing liabilities.  The net interest margin on a tax equivalent basis decreased 16 basis points to 4.15% for the first quarter 2020 from 4.31% for the first quarter 2019 and increased 4 basis points from 4.11% for the fourth quarter 2019. Core net interest margin on a tax equivalent basis excludes the impact of acquisition accounting adjustments and was 4.04% for the first quarter 2020 compared to 4.03% for the first quarter 2019 and 3.94% for the fourth quarter 2019. Please refer to the non-GAAP reconciliation on page 9.

 

Noninterest income for the first quarter 2020 was $2.7 million, a decrease of $564 thousand, or 17.1%, compared to $3.3 million for the first quarter 2019 and a decrease of $675 thousand, or 19.9%, compared to $3.4 million for the fourth quarter 2019.  Noninterest

1


income for the first quarter 2020 and the fourth quarter 2019 included $194 thousand and $613 thousand, respectively, of gains on the sale of securities.

 

Noninterest expense for the first quarter 2020 increased $1.3 million, or 4.1%, to $32.4 million from $31.1 million for the first quarter 2019 and increased $3.0 million, or 10.1%, compared to the fourth quarter 2019. Noninterest expense for the first quarter 2020 included $2.2 million of other real estate write-downs.

 

In the first quarter 2020, Allegiance’s efficiency ratio was 68.13% compared to 62.20% for the fourth quarter 2019 and 64.97% for the first quarter 2019.  First quarter 2020 annualized returns on average assets, average equity and average tangible equity were 0.29%, 1.98% and 3.02%, respectively, compared to 1.13%, 7.81% and 11.96%, respectively, for the fourth quarter 2019.  Annualized returns on average assets, average equity and average tangible equity for the first quarter 2019 were 1.08%, 7.27% and 11.22%, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 9.  

 

Financial Condition

 

Total assets at March 31, 2020 increased $9.8 million to $5.00 billion compared to $4.99 billion at December 31, 2019 and increased $233.6 million compared to $4.77 billion at March 31, 2019, primarily due to organic loan growth.

 

Total loans at March 31, 2020 increased $40.2 million, or 4.1% (annualized), to $3.96 billion compared to $3.92 billion at December 31, 2019 and increased $149.4 million, or 3.9%, compared to $3.81 billion at March 31, 2019, primarily due to organic loan growth. Core loans, which exclude the mortgage warehouse portfolio, increased $47.4 million, or 4.9% (annualized), to $3.95 billion at March 31, 2020 from $3.91 billion at December 31, 2019 and increased $185.1 million, or 4.9%, from $3.77 billion at March 31, 2019.

 

Loans with oil and gas industry exposure totaled $80.7 million, or 2.0%, of total loans at March 31, 2020, of which $826 thousand were on nonaccrual. At March 31, 2020, the Company’s allowance for loan losses allocated to its total oil and gas loan portfolio was 1.5% of total oil and gas loans.

 

In addition, at March 31, 2020, loan balances in the hotel and restaurant and bar industries was $133.0 million, or 3.4%, of total loans, and $101.3 million, or 2.6%, of total loans, respectively. At March 31, 2020, there were no hotel loans on nonaccrual and there were $794 thousand restaurant and bar loans on nonaccrual. At March 31, 2020, the Company’s allowance for loan losses allocated to its hotel portfolio was 1.0% of total hotel loans and its restaurant and bar portfolio was 1.2% of total restaurant and bar loans.

 

The Company had executed 1,563 principal and interest deferrals on outstanding loan balances of $838.1 million, as of April 26, 2020, in connection with the COVID-19 relief provided by the CARES Act. These deferrals were generally no more than 90 days in duration.

 

Deposits at March 31, 2020 decreased $114.5 million, or 11.3% (annualized), to $3.95 billion compared to $4.07 billion at December 31, 2019 and increased $173.5 million, or 4.6%, compared to $3.78 billion at March 31, 2019.

 

Asset Quality

 

Nonperforming assets totaled $34.2 million, or 0.68% of total assets, at March 31, 2020, compared to $36.7 million, or 0.74% of total assets, at December 31, 2019, and $33.8 million, or 0.71% of total assets, at March 31, 2019. The allowance for loan losses was 0.95% of total loans at March 31, 2020, 0.75% of total loans at December 31, 2019 and 0.71% of total loans at March 31, 2019. Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (CECL), became effective for the Company on January 1, 2020. On March 27, 2020, the CARES Act included an option for entities to delay the implementation of CECL until the earlier of the termination date of the national emergency declaration by the President or December 31, 2020. Due to the uncertainty on the economy from COVID-19, the Company chose to delay its implementation of CECL and recorded its provision for loan losses under the incurred loss model that existed prior to CECL.

 

The provision for loan losses for the first quarter 2020 was $11.0 million, or 1.12% (annualized) of average loans, compared to $933 thousand, or 0.10% (annualized) of average loans, for the fourth quarter 2019 and $1.0 million, or 0.11% (annualized) of average loans for the first quarter 2019 primarily due to economic risks and uncertainties related to the COVID-19 pandemic. The increase in the Company’s provision for loan losses in the first quarter of 2020 compared to prior quarters reflects overall growth in the loan portfolio; increased level of charge-offs; and increasing uncertainty surrounding unemployment, the economic impact caused by COVID-19 and the economic effects related to the recent sharp decline in crude oil prices.

 

First quarter 2020 net charge-offs were $2.9 million, or 0.30% (annualized) of average loans, compared to net charge-offs of $1.3 million, or 0.13% (annualized) of average loans, for the fourth quarter 2019 and $210 thousand, or 0.02% (annualized) of average loans, for the first quarter 2019.

 

2


Dividend

 

On April 23, 2020, the Board of Directors of Allegiance declared a cash dividend of $0.10 per share to be paid on June 15, 2020 to all shareholders of record as of May 29, 2020. The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.

 

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 9 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 Thursday, April 30, 2020 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first quarter 2020 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 9575797.  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 March 31, 2020, Allegiance was a $5.00 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 March 31, 2020, 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 contains forward-looking statements within the meaning of the securities laws that are derived utilizing 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 expected 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. Additionally, the impact of the COVID-19 pandemic is rapidly evolving and its future effects on Allegiance are difficult to predict. These and various other risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 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. Because of these uncertainties, readers should not place undue reliance on any forward-looking statement. Allegiance disclaims any 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)

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

 

(Dollars in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

156,700

 

 

$

213,347

 

 

$

246,312

 

 

$

170,850

 

 

$

169,975

 

Interest-bearing deposits at other financial

   institutions

 

 

18,189

 

 

 

132,901

 

 

 

54,307

 

 

 

61,757

 

 

 

88,868

 

Total cash and cash equivalents

 

 

174,889

 

 

 

346,248

 

 

 

300,619

 

 

 

232,607

 

 

 

258,843

 

Available for sale securities, at fair value

 

 

508,250

 

 

 

372,545

 

 

 

353,000

 

 

 

348,173

 

 

 

345,716

 

Loans held for investment

 

 

3,955,546

 

 

 

3,915,310

 

 

 

3,886,004

 

 

 

3,857,963

 

 

 

3,806,161

 

Less: allowance for loan losses

 

 

(37,511

)

 

 

(29,438

)

 

 

(29,808

)

 

 

(27,940

)

 

 

(27,123

)

Loans, net

 

 

3,918,035

 

 

 

3,885,872

 

 

 

3,856,196

 

 

 

3,830,023

 

 

 

3,779,038

 

Accrued interest receivable

 

 

17,203

 

 

 

15,468

 

 

 

15,201

 

 

 

16,508

 

 

 

16,194

 

Premises and equipment, net

 

 

66,798

 

 

 

66,790

 

 

 

67,175

 

 

 

59,690

 

 

 

60,327

 

Other real estate owned

 

 

12,617

 

 

 

8,337

 

 

 

8,333

 

 

 

6,294

 

 

 

1,152

 

Federal Home Loan Bank stock

 

 

12,798

 

 

 

6,242

 

 

 

14,138

 

 

 

8,866

 

 

 

14,365

 

Bank owned life insurance

 

 

27,255

 

 

 

27,104

 

 

 

26,947

 

 

 

26,794

 

 

 

26,639

 

Goodwill

 

 

223,642

 

 

 

223,642

 

 

 

223,642

 

 

 

223,642

 

 

 

223,642

 

Core deposit intangibles, net

 

 

20,886

 

 

 

21,876

 

 

 

23,053

 

 

 

24,231

 

 

 

25,409

 

Other assets

 

 

20,056

 

 

 

18,530

 

 

 

17,536

 

 

 

17,383

 

 

 

17,477

 

Total assets

 

$

5,002,429

 

 

$

4,992,654

 

 

$

4,905,840

 

 

$

4,794,211

 

 

$

4,768,802

 

LIABILITIES AND SHAREHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

1,217,532

 

 

$

1,252,232

 

 

$

1,227,839

 

 

$

1,173,423

 

 

$

1,181,920

 

Interest-bearing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

 

341,524

 

 

 

367,278

 

 

 

340,754

 

 

 

390,067

 

 

 

328,961

 

Money market and savings

 

 

1,110,631

 

 

 

1,258,008

 

 

 

1,114,233

 

 

 

995,467

 

 

 

901,773

 

Certificates and other time

 

 

1,283,887

 

 

 

1,190,583

 

 

 

1,214,659

 

 

 

1,301,683

 

 

 

1,367,407

 

Total interest-bearing deposits

 

 

2,736,042

 

 

 

2,815,869

 

 

 

2,669,646

 

 

 

2,687,217

 

 

 

2,598,141

 

Total deposits

 

 

3,953,574

 

 

 

4,068,101

 

 

 

3,897,485

 

 

 

3,860,640

 

 

 

3,780,061

 

Accrued interest payable

 

 

3,821

 

 

 

4,326

 

 

 

4,915

 

 

 

3,531

 

 

 

4,511

 

Borrowed funds

 

 

190,506

 

 

 

75,503

 

 

 

159,501

 

 

 

146,998

 

 

 

201,995

 

Subordinated debt

 

 

107,930

 

 

 

107,799

 

 

 

107,771

 

 

 

49,019

 

 

 

48,959

 

Other liabilities

 

 

40,005

 

 

 

27,060

 

 

 

29,860

 

 

 

29,322

 

 

 

29,499

 

Total liabilities

 

 

4,295,836

 

 

 

4,282,789

 

 

 

4,199,532

 

 

 

4,089,510

 

 

 

4,065,025

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

20,355

 

 

 

20,524

 

 

 

20,737

 

 

 

21,147

 

 

 

21,484

 

Capital surplus

 

 

513,894

 

 

 

521,066

 

 

 

529,688

 

 

 

541,979

 

 

 

556,184

 

Retained earnings

 

 

164,858

 

 

 

163,375

 

 

 

149,389

 

 

 

137,342

 

 

 

123,094

 

Accumulated other comprehensive

   income

 

 

7,486

 

 

 

4,900

 

 

 

6,494

 

 

 

4,233

 

 

 

3,015

 

Total shareholders’ equity

 

 

706,593

 

 

 

709,865

 

 

 

706,308

 

 

 

704,701

 

 

 

703,777

 

TOTAL LIABILITIES AND

   SHAREHOLDERS’ EQUITY

 

$

5,002,429

 

 

$

4,992,654

 

 

$

4,905,840

 

 

$

4,794,211

 

 

$

4,768,802

 

 

4


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

Three Months Ended

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

 

(Dollars in thousands, except per share data)

 

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Loans, including fees

 

$

54,624

 

 

$

55,368

 

 

$

55,790

 

 

$

56,016

 

 

$

54,189

 

   Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Taxable

 

 

2,087

 

 

 

2,066

 

 

 

2,090

 

 

 

1,837

 

 

 

982

 

      Tax-exempt

 

 

546

 

 

 

469

 

 

 

483

 

 

 

692

 

 

 

1,290

 

   Deposits in other financial

      institutions

 

 

195

 

 

 

244

 

 

 

302

 

 

 

401

 

 

 

688

 

         Total interest income

 

 

57,452

 

 

 

58,147

 

 

 

58,665

 

 

 

58,946

 

 

 

57,149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Demand, money market and

      savings deposits

 

 

4,364

 

 

 

5,091

 

 

 

4,975

 

 

 

4,513

 

 

 

3,728

 

   Certificates and other time

      deposits

 

 

6,084

 

 

 

6,483

 

 

 

6,909

 

 

 

7,008

 

 

 

6,256

 

   Borrowed funds

 

 

506

 

 

 

547

 

 

 

1,183

 

 

 

1,118

 

 

 

1,827

 

   Subordinated debt

 

 

1,473

 

 

 

1,500

 

 

 

761

 

 

 

736

 

 

 

735

 

         Total interest expense

 

 

12,427

 

 

 

13,621

 

 

 

13,828

 

 

 

13,375

 

 

 

12,546

 

NET INTEREST INCOME

 

 

45,025

 

 

 

44,526

 

 

 

44,837

 

 

 

45,571

 

 

 

44,603

 

Provision for loan losses

 

 

10,990

 

 

 

933

 

 

 

2,597

 

 

 

1,407

 

 

 

1,002

 

Net interest income after provision

   for loan losses

 

 

34,035

 

 

 

43,593

 

 

 

42,240

 

 

 

44,164

 

 

 

43,601

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonsufficient funds fees

 

 

169

 

 

 

189

 

 

 

168

 

 

 

139

 

 

 

162

 

   Service charges on deposit

      accounts

 

 

457

 

 

 

403

 

 

 

379

 

 

 

365

 

 

 

325

 

   Gain on sale of securities

 

 

194

 

 

 

613

 

 

 

 

 

 

846

 

 

 

 

   (Loss) gain on sales of other real

      estate and repossessed assets

 

 

(69

)

 

 

(45

)

 

 

 

 

 

70

 

 

 

1

 

   Bank owned life insurance

 

 

151

 

 

 

157

 

 

 

153

 

 

 

155

 

 

 

159

 

   Rebate from correspondent bank

 

 

493

 

 

 

900

 

 

 

900

 

 

 

884

 

 

 

896

 

   Other

 

 

1,330

 

 

 

1,183

 

 

 

1,289

 

 

 

1,386

 

 

 

1,746

 

      Total noninterest income

 

 

2,725

 

 

 

3,400

 

 

 

2,889

 

 

 

3,845

 

 

 

3,289

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Salaries and employee benefits

 

 

19,781

 

 

 

18,273

 

 

 

20,221

 

 

 

19,415

 

 

 

19,684

 

   Net occupancy and equipment

 

 

1,907

 

 

 

1,994

 

 

 

1,973

 

 

 

2,114

 

 

 

2,098

 

   Depreciation

 

 

866

 

 

 

861

 

 

 

822

 

 

 

756

 

 

 

753

 

   Data processing and software

      amortization

 

 

1,826

 

 

 

2,120

 

 

 

2,058

 

 

 

1,709

 

 

 

1,577

 

   Professional fees

 

 

573

 

 

 

540

 

 

 

667

 

 

 

527

 

 

 

599

 

   Regulatory assessments and

      FDIC insurance

 

 

632

 

 

 

216

 

 

 

(41

)

 

 

802

 

 

 

728

 

   Core deposit intangibles

      amortization

 

 

990

 

 

 

1,177

 

 

 

1,178

 

 

 

1,178

 

 

 

1,178

 

   Communications

 

 

417

 

 

 

486

 

 

 

455

 

 

 

468

 

 

 

430

 

   Advertising

 

 

521

 

 

 

597

 

 

 

449

 

 

 

617

 

 

 

704

 

   Acquisition and merger-related

      expenses

 

 

 

 

 

 

 

 

 

 

 

153

 

 

 

1,173

 

   Other

 

 

4,888

 

 

 

3,167

 

 

 

2,227

 

 

 

2,341

 

 

 

2,191

 

      Total noninterest expense

 

 

32,401

 

 

 

29,431

 

 

 

30,009

 

 

 

30,080

 

 

 

31,115

 

INCOME BEFORE INCOME

   TAXES

 

 

4,359

 

 

 

17,562

 

 

 

15,120

 

 

 

17,929

 

 

 

15,775

 

   Provision for income taxes

 

 

843

 

 

 

3,576

 

 

 

3,073

 

 

 

3,681

 

 

 

3,097

 

NET INCOME

 

$

3,516

 

 

$

13,986

 

 

$

12,047

 

 

$

14,248

 

 

$

12,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

0.17

 

 

$

0.68

 

 

$

0.57

 

 

$

0.67

 

 

$

0.58

 

   Diluted

 

$

0.17

 

 

$

0.67

 

 

$

0.57

 

 

$

0.66

 

 

$

0.58

 

5


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

Three Months Ended

 

 

 

2020

 

 

2019

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

 

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

 

Net income

 

$

3,516

 

 

$

13,986

 

 

$

12,047

 

 

$

14,248

 

 

$

12,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, basic

 

$

0.17

 

 

$

0.68

 

 

$

0.57

 

 

$

0.67

 

 

$

0.58

 

Earnings per share, diluted

 

$

0.17

 

 

$

0.67

 

 

$

0.57

 

 

$

0.66

 

 

$

0.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(A)

 

 

0.29

%

 

 

1.13

%

 

 

0.98

%

 

 

1.19

%

 

 

1.08

%

Return on average equity(A)

 

 

1.98

%

 

 

7.81

%

 

 

6.73

%

 

 

8.10

%

 

 

7.27

%

Return on average tangible

   equity(A)(B)

 

 

3.02

%

 

 

11.96

%

 

 

10.33

%

 

 

12.52

%

 

 

11.22

%

Net interest margin

   (tax equivalent)(C)

 

 

4.15

%

 

 

4.11

%

 

 

4.16

%

 

 

4.33

%

 

 

4.31

%

Core net interest margin

   (tax equivalent)(B)

 

 

4.04

%

 

 

3.94

%

 

 

3.97

%

 

 

4.07

%

 

 

4.03

%

Efficiency ratio(D)

 

 

68.13

%

 

 

62.20

%

 

 

62.88

%

 

 

61.93

%

 

 

64.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allegiance Bancshares, Inc.

   (Consolidated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Equity to assets

 

 

14.12

%

 

 

14.22

%

 

 

14.40

%

 

 

14.70

%

 

 

14.76

%

  Tangible equity to tangible

   assets(B)

 

 

9.71

%

 

 

9.78

%

 

 

9.86

%

 

 

10.05

%

 

 

10.06

%

  Estimated common equity

     tier 1 capital

 

 

11.16

%

 

 

11.42

%

 

 

11.28

%

 

 

11.34

%

 

 

11.37

%

  Estimated tier 1 risk-based

     capital

 

 

11.40

%

 

 

11.66

%

 

 

11.51

%

 

 

11.58

%

 

 

11.61

%

  Estimated total risk-based

     capital

 

 

14.73

%

 

 

14.83

%

 

 

14.70

%

 

 

13.27

%

 

 

13.28

%

  Estimated tier 1 leverage

     capital

 

 

9.89

%

 

 

10.02

%

 

 

10.06

%

 

 

10.17

%

 

 

10.25

%

Allegiance Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Estimated common equity

     tier 1 capital

 

 

12.60

%

 

 

12.67

%

 

 

12.28

%

 

 

12.02

%

 

 

11.67

%

  Estimated tier 1 risk-based

     capital

 

 

12.60

%

 

 

12.67

%

 

 

12.28

%

 

 

12.02

%

 

 

11.67

%

  Estimated total risk-based

     capital

 

 

14.50

%

 

 

14.39

%

 

 

14.01

%

 

 

13.71

%

 

 

13.34

%

  Estimated tier 1 leverage

     capital

 

 

10.94

%

 

 

10.89

%

 

 

10.73

%

 

 

10.57

%