allegiancebanc02.jpg
PRESS RELEASE    

Allegiance Bancshares, Inc.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com                                        
ALLEGIANCE BANCSHARES, INC. REPORTS
FIRST QUARTER 2018 RESULTS

Net income increased 27.5% to $7.7 million and diluted earnings per share of $0.57 for the first quarter 2018 compared to $6.0 million and $0.45 for the first quarter 2017

Core loan growth of $326.6 million, or 17.0%, year over year and $47.5 million, or 8.6% (annualized), for the first quarter 2018 compared to the linked quarter and deposit growth of $272.2 million, or 13.5%, year over year and $70.8 million, or 12.8% (annualized), for the first quarter 2018 compared to the linked quarter

HOUSTON, April 26, 2018. Allegiance Bancshares, Inc. (NASDAQ: ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $7.7 million and diluted earnings per share of $0.57 in the first quarter 2018 compared to $6.0 million and diluted earnings per share of $0.45 for the first quarter 2017.

"Our results for the first quarter reflect the fact that our customers respond favorably to their unique experience of doing business with Allegiance," said George Martinez, Allegiance's Chairman and Chief Executive Officer. "We continue to generate organic growth in both loans and deposits. Earnings were solid, noting the benefit of the reduction in the statutory tax rate as a result of the recent tax reform legislation. Our team is laser-focused on the execution of our key strategies and the delivery of high quality growth, while managing costs and risk. Asset quality remains strong with nonperforming assets to total assets at 0.49%," commented Martinez.

"This quarter is a good beginning, and we look forward to another successful year. We are grateful for our dedicated employees, who add value to customer relationships and provide superior service. They embody our culture and ensure a consistent customer experience at Allegiance, and we appreciate their hard work and loyalty," concluded Martinez.

First Quarter 2018 Results

Net interest income before provision for loan losses in the first quarter 2018 increased $2.8 million, or 11.4%, to $26.9 million from $24.1 million for the first quarter 2017 primarily due to organic loan growth partially offset by interest expense on the subordinated debt that was issued in December 2017. Net interest income before provision for loan losses in the first quarter 2018 decreased slightly from $27.4 million in the fourth quarter 2017 primarily due to interest expense on the subordinated debt that was issued in December 2017 partially offset by organic loan growth. The net interest margin on a tax equivalent basis decreased 18 basis points to 4.20% for the first quarter 2018 from 4.38% for the first quarter 2017 and decreased 13 basis points from 4.33% for the fourth quarter 2017. The decreases from the prior year and the linked quarter are primarily due to interest expense on the subordinated debt issuance.

Noninterest income for the first quarter 2018 was $1.6 million, an increase of $305 thousand, or 22.7%, compared to $1.3 million for the first quarter 2017 and increased $63 thousand compared to $1.6 million for the fourth quarter 2017.

Noninterest expense for the first quarter 2018 increased $2.2 million, or 13.1%, to $18.7 million from $16.5 million for the first quarter 2017, and decreased $559 thousand, or 2.9%, from $19.3 million for the fourth quarter 2017. The increase in noninterest expense over the first quarter 2017 was primarily due to salaries and benefits expense to support strategic growth initiatives. In the first quarter 2018, Allegiance’s efficiency ratio increased to 65.59% from 64.98% for the first quarter 2017 and decreased from 66.50% for the fourth quarter 2017. First quarter 2018 annualized returns on average assets, average equity and average tangible equity were 1.09%, 10.10% and 11.71%, respectively, compared to 0.96%, 8.61% and 10.15%, respectively, for the first quarter 2017. Annualized returns on average assets, average equity and average tangible equity for the fourth quarter 2017 were 0.45%, 4.15% and 4.82%, respectively.

1




Financial Condition

Total assets at March 31, 2018 increased $294.2 million, or 11.3%, to $2.89 billion compared to $2.59 billion at March 31, 2017 and increased $26.3 million, or 0.9%, compared to $2.86 billion at December 31, 2017.

Total loans at March 31, 2018 increased $304.1 million, or 15.3%, to $2.29 billion compared to $1.99 billion at March 31, 2017 and increased $19.6 million, or 0.9%, compared to $2.27 billion at December 31, 2017. These increases were due to strong organic loan growth within the Bank’s loan portfolio. Core loans, which exclude the mortgage warehouse portfolio, increased $326.6 million, or 17.0%, to $2.25 billion at March 31, 2018 from $1.92 billion at March 31, 2017 and increased $47.5 million, or 2.2%, from $2.20 billion at December 31, 2017.

Deposits at March 31, 2018 increased $272.2 million, or 13.5%, to $2.28 billion compared to $2.01 billion at March 31, 2017 and increased $70.8 million, or 3.2%, compared to $2.21 billion at December 31, 2017.

Asset Quality

Nonperforming assets totaled $14.2 million, or 0.49% of total assets, at March 31, 2018, compared to $19.9 million, or 0.77% of total assets, at March 31, 2017, and $13.9 million, or 0.49% of total assets, at December 31, 2017. The allowance for loan losses was 1.08% of total loans at March 31, 2018, 0.94% of total loans at March 31, 2017 and 1.04% of total loans at December 31, 2017.

The provision for loan losses for the first quarter 2018 was $653 thousand, or 0.12% (annualized) of average loans, compared to $1.3 million, or 0.28% (annualized) of average loans, for the first quarter 2017, and $1.9 million, or 0.35% (annualized) of average loans, for the fourth quarter 2017.

First quarter 2018 net recoveries were $327 thousand compared to net charge-offs of $567 thousand for the first quarter 2017 and net charge-offs of $2.0 million for the fourth quarter 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 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 26, 2018 at 8:00 a.m. Central Time (9:00 a.m. Eastern Time) to discuss its first quarter 2018 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 7295969. 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.

Allegiance is a $2.89 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. Allegiance Bank operates 16 full-service banking locations and one loan production office in the Houston metropolitan area. Visit www.allegiancebank.com for more information.









2



“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



Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 March 31
 
 December 31
 
 September 30
 
 June 30
 
 March 31
 
 (Dollars in thousands)
Cash and cash equivalents
$
190,088

 
$
182,103

 
$
192,427

 
$
187,491

 
$
184,146

Available for sale securities
307,411

 
309,615

 
323,856

 
321,268

 
317,219

 
 
 
 
 
 
 
 
 
 
Total loans
2,290,494

 
2,270,876

 
2,201,540

 
2,114,652

 
1,986,438

Allowance for loan losses
(24,628
)
 
(23,649
)
 
(23,722
)
 
(21,010
)
 
(18,687
)
Loans, net
2,265,866

 
2,247,227

 
2,177,818

 
2,093,642

 
1,967,751

 
 
 
 
 
 
 
 
 
 
Goodwill
39,389

 
39,389

 
39,389

 
39,389

 
39,389

Core deposit intangibles, net
3,079

 
3,274

 
3,469

 
3,664

 
3,860

Premises and equipment, net
18,605

 
18,477

 
18,273

 
18,240

 
18,138

Other real estate owned
365

 
365

 
453

 
365

 
365

Bank owned life insurance
22,563

 
22,422

 
22,277

 
22,131

 
21,985

Other assets
39,118

 
37,359

 
35,472

 
38,526

 
39,477

Total assets
$
2,886,484

 
$
2,860,231

 
$
2,813,434

 
$
2,724,716

 
$
2,592,330

 
 
 
 
 
 
 
 
 
 
Noninterest-bearing deposits
$
694,880

 
$
683,110

 
$
712,951

 
$
662,527

 
$
615,225

Interest-bearing deposits
1,589,922

 
1,530,864

 
1,573,664

 
1,436,715

 
1,397,344

Total deposits
2,284,802

 
2,213,974

 
2,286,615

 
2,099,242

 
2,012,569

 
 
 
 
 
 
 
 
 
 
Borrowed funds
232,569

 
282,569

 
207,569

 
310,569

 
275,569

Subordinated debt
48,719

 
48,659

 
9,277

 
9,249

 
9,222

Other liabilities
8,406

 
8,164

 
7,246

 
7,197

 
5,840

Total liabilities
2,574,496

 
2,553,366

 
2,510,707

 
2,426,257

 
2,303,200

 
 
 
 
 
 
 
 
 
 
Common stock
13,302

 
13,227

 
13,171

 
13,153

 
13,080

Capital surplus
219,760

 
218,408

 
216,943

 
216,158

 
215,015

Retained earnings
82,533

 
74,894

 
71,690

 
68,704

 
63,309

Accumulated other comprehensive (loss) income
(3,607
)
 
336

 
923

 
444

 
(2,274
)
Shareholders' equity
311,988

 
306,865

 
302,727

 
298,459

 
289,130

Total liabilities and equity
$
2,886,484

 
$
2,860,231

 
$
2,813,434

 
$
2,724,716

 
$
2,592,330



4



Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
2018
 
2017
 
 March 31
 
 December 31
 
 September 30
 
 June 30
 
 March 31
 
(Dollars in thousands, except per share data)
INTEREST INCOME:
 
 
 
 
 
 
 
 
 
Loans, including fees
$
30,117

 
$
29,747

 
$
28,588

 
$
26,736

 
$
25,260

Securities
 
 
 
 
 
 
 
 
 
    Taxable
599

 
563

 
547

 
503

 
498

    Tax-exempt
1,459

 
1,545

 
1,574

 
1,591

 
1,624

Deposits in other financial institutions
216

 
183

 
192

 
157

 
130

Total interest income
32,391

 
32,038

 
30,901

 
28,987

 
27,512

 
 
 
 
 
 
 
 
 
 
INTEREST EXPENSE:
 
 
 
 
 
 
 
 
 
Demand, money market and savings deposits
976

 
992

 
811

 
702

 
654

Certificates and other time deposits
2,785

 
2,521

 
2,299

 
2,283

 
1,957

Borrowed funds
1,036

 
854

 
654

 
761

 
653

Subordinated debt
705

 
235

 
140

 
134

 
120

Total interest expense
5,502

 
4,602

 
3,904

 
3,880

 
3,384

NET INTEREST INCOME
26,889

 
27,436

 
26,997

 
25,107

 
24,128

Provision for loan losses
653

 
1,930

 
6,908

 
3,007

 
1,343

Net interest income after provision for loan losses
26,236

 
25,506

 
20,089

 
22,100

 
22,785

 
 
 
 
 
 
 
 
 
 
NONINTEREST INCOME:
 
 
 
 
 
 
 
 
 
Nonsufficient funds fees
176

 
158

 
144

 
184

 
199

Service charges on deposit accounts
223

 
179

 
204

 
205

 
195

Gain (loss) on sale of securities

 
30

 
(12
)
 

 

Gain on sale of other real estate

 
6

 

 

 

Bank owned life insurance
141

 
145

 
146

 
146

 
148

Rebate from correspondent bank
444

 
388

 
370

 
336

 
233

Other
662

 
677

 
608

 
606

 
566

Total noninterest income
1,646

 
1,583

 
1,460

 
1,477

 
1,341

 
 
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE:
 
 
 
 
 
 
 
 
 
Salaries and employee benefits
12,794

 
12,188

 
11,580

 
10,415

 
10,562

Net occupancy and equipment
1,272

 
1,398

 
1,325

 
1,302

 
1,427

Depreciation
407

 
412

 
427

 
398

 
400

Data processing and software amortization
1,053

 
1,850

 
783

 
719

 
695

Professional fees
469

 
222

 
822

 
987

 
895

Regulatory assessments and FDIC insurance
534

 
533

 
582

 
569

 
589

Core deposit intangibles amortization
195

 
195

 
195

 
196

 
195

Communications
248

 
252

 
251

 
233

 
247

Advertising
330

 
436

 
302

 
288

 
263

Other
1,415

 
1,790

 
1,409

 
1,354

 
1,276

Total noninterest expense
18,717

 
19,276

 
17,676

 
16,461

 
16,549

INCOME BEFORE INCOME TAXES
9,165

 
7,813

 
3,873

 
7,116

 
7,577

   Provision for income taxes
1,454

 
4,609

 
887

 
1,721

 
1,530

NET INCOME
$
7,711

 
$
3,204

 
$
2,986

 
$
5,395

 
$
6,047

 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE
 
 
 
 
 
 
 
 
 
   Basic
$
0.58

 
$
0.24

 
$
0.23

 
$
0.41

 
$
0.46

   Diluted
$
0.57

 
$
0.24

 
$
0.22

 
$
0.40

 
$
0.45


5



Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
2018
 
2017
 
 
 March 31
 
 December 31
 
 September 30
 
 June 30
 
 March 31
 
 
(Dollars and share amounts in thousands, except per share data)
Net income
 
$
7,711

 
$
3,204

 
$
2,986

 
$
5,395

 
$
6,047

 
 
 
 
 
 
 
 
 
 
 
Earnings per share, basic
 
$
0.58

 
$
0.24

 
$
0.23

 
$
0.41

 
$
0.46

Earnings per share, diluted
 
$
0.57

 
$
0.24

 
$
0.22

 
$
0.40

 
$
0.45

 
 
 
 
 
 
 
 
 
 
 
Return on average assets(A)
 
1.09
%
 
0.45
%
 
0.43
%
 
0.81
%
 
0.96
%
Return on average equity(A)
 
10.10
%
 
4.15
%
 
3.90
%
 
7.32
%
 
8.61
%
Return on average tangible equity(A)(B)
 
11.71
%
 
4.82
%
 
4.55
%
 
8.57
%
 
10.15
%
Tax equivalent net interest margin(C)
 
4.20
%
 
4.33
%
 
4.37
%
 
4.29
%
 
4.38
%
Efficiency ratio(D)
 
65.59
%
 
66.50
%
 
62.14
%
 
61.92
%
 
64.98
%
 
 
 
 
 
 
 
 
 
 
 
Liquidity and Capital Ratios
 
 
 
 
 
 
 
 
 
 
Allegiance Bancshares, Inc. (Consolidated)
 
 
 
 
 
 
 
 
 
 
  Equity to assets
 
10.81
%
 
10.73
%
 
10.76
%
 
10.95
%
 
11.15
%
  Tangible equity to tangible assets(B)
 
9.48
%
 
9.38
%
 
9.38
%
 
9.52
%
 
9.65
%
  Estimated common equity tier 1 capital
 
10.81
%
 
10.54
%
 
10.68
%
 
10.84
%
 
11.10
%
  Estimated tier 1 risk-based capital
 
11.18
%
 
10.92
%
 
11.07
%
 
11.24
%
 
11.51
%
  Estimated total risk-based capital
 
13.71
%
 
13.43
%
 
12.04
%
 
12.13
%
 
12.35
%
  Estimated tier 1 leverage capital
 
9.97
%
 
9.84
%
 
9.90
%
 
10.11
%
 
10.28
%
Allegiance Bank
 
 
 
 
 
 
 
 
 
 
  Estimated common equity tier 1 capital
 
10.94
%
 
10.72
%
 
10.93
%
 
10.23
%
 
10.49
%
  Estimated tier 1 risk-based capital
 
10.94
%
 
10.72
%
 
10.93
%
 
10.23
%
 
10.49
%
  Estimated total risk-based capital
 
13.48
%
 
13.24
%
 
11.91
%
 
11.12
%
 
11.32
%
  Estimated tier 1 leverage capital
 
9.77
%
 
9.67
%
 
9.77
%
 
9.20
%
 
9.37
%
 
 
 
 
 
 
 
 
 
 
 
Other Data
 
 
 
 
 
 
 
 
 
 
Weighted average shares:
 
 
 
 
 
 
 
 
 
 
Basic
 
13,262

 
13,187

 
13,165

 
13,125

 
13,021

Diluted
 
13,542

 
13,496

 
13,483

 
13,471

 
13,377

Period end shares outstanding
 
13,301

 
13,227

 
13,171

 
13,153

 
13,080

Book value per share
 
$
23.46

 
$
23.20

 
$
22.98

 
$
22.69

 
$
22.10

Tangible book value per share(B)
 
$
20.26

 
$
19.97

 
$
19.73

 
$
19.42

 
$
18.80


(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 9 of this Earnings Release.
(C)
Net interest margin represents net interest income divided by average interest-earning assets.
(D)
Represents noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of securities. Additionally, taxes and provision for loan losses are not part of this calculation.


6



Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
March 31, 2018
 
December 31, 2017
 
March 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
$
2,260,119

 
$
30,117

 
5.40
%
 
$
2,209,389

 
$
29,747

 
5.34
%
 
$
1,928,333

 
$
25,260

 
5.31
%
Securities
312,769

 
2,058

 
2.67
%
 
322,539

 
2,108

 
2.59
%
 
325,911

 
2,122

 
2.64
%
Deposits in other financial institutions
49,897

 
216

 
1.74
%
 
47,257

 
183

 
1.54
%
 
53,338

 
130

 
0.99
%
   Total interest-earning assets
2,622,785

 
$
32,391

 
5.01
%
 
2,579,185

 
$
32,038

 
4.93
%
 
2,307,582

 
$
27,512

 
4.84
%
Allowance for loan losses
(23,949
)
 
 
 
 
 
(23,740
)
 
 
 
 
 
(18,200
)
 
 
 
 
Noninterest-earning assets
272,430

 
 
 
 
 
267,611

 
 
 
 
 
259,315

 
 
 
 
   Total assets
$
2,871,266

 
 
 
 
 
$
2,823,056

 
 
 
 
 
$
2,548,697

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-Bearing Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
$
232,375

 
$
317

 
0.55
%
 
$
214,498

 
$
252

 
0.47
%
 
$
130,909

 
$
100

 
0.31
%
Money market and savings deposits
552,396

 
659

 
0.48
%
 
599,977

 
740

 
0.49
%
 
486,779

 
554

 
0.46
%
Certificates and other time deposits
800,343

 
2,785

 
1.41
%
 
766,942

 
2,521

 
1.30
%
 
685,169

 
1,957

 
1.16
%
Borrowed funds
250,414

 
1,036

 
1.68
%
 
232,863

 
854

 
1.45
%
 
345,848

 
653

 
0.75
%
Subordinated debt
48,684

 
705

 
5.87
%
 
17,070

 
235

 
5.46
%
 
9,205

 
120

 
5.28
%
   Total interest-bearing liabilities
1,884,212

 
$
5,502

 
1.18
%
 
1,831,350

 
$
4,602

 
1.00
%
 
1,657,910

 
$
3,384

 
0.83
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-Bearing Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noninterest-bearing demand deposits
669,258

 
 
 
 
 
675,643

 
 
 
 
 
600,006

 
 
 
 
Other liabilities
8,251

 
 
 
 
 
9,717

 
 
 
 
 
5,892

 
 
 
 
   Total liabilities
2,561,721

 
 
 
 
 
2,516,710

 
 
 
 
 
2,263,808

 
 
 
 
Shareholders' equity
309,545

 
 
 
 
 
306,346

 
 
 
 
 
284,889

 
 
 
 
   Total liabilities and shareholders' equity
$
2,871,266

 
 
 
 
 
$
2,823,056

 
 
 
 
 
$
2,548,697

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest rate spread
 
 
 
 
3.82
%
 
 
 
 
 
3.93
%
 
 
 
 
 
4.01
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income and margin
 
 
$
26,889

 
4.16
%
 
 
 
$
27,436

 
4.22
%
 
 
 
$
24,128

 
4.24
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net interest income and margin (tax equivalent)
 
 
$
27,174

 
4.20
%
 
 
 
$
28,151

 
4.33
%
 
 
 
$
24,907

 
4.38
%


7



Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
2018
 
2017
 
 March 31
 
 December 31
 
 September 30
 
 June 30
 
 March 31
 
(Dollars in thousands)
Period-end Loan Portfolio:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
447,168

 
$
457,129

 
$
446,029

 
$
444,701

 
$
425,154

Mortgage warehouse
41,572

 
69,456

 
83,577

 
73,499

 
64,132

Real estate:
 
 
 
 
 
 
 
 
 
Commercial real estate (including multi-family residential)
1,108,537

 
1,080,247

 
1,045,220

 
1,008,027

 
961,212

Commercial real estate construction and land development
257,566

 
243,389

 
225,574

 
206,024

 
175,264

1-4 family residential (including home equity)
317,842

 
301,219

 
283,399

 
267,939

 
250,881

Residential construction
108,882

 
109,116

 
106,299

 
102,832

 
99,648

Consumer and other
8,927

 
10,320

 
11,442

 
11,630

 
10,147

Total loans
$
2,290,494

 
$
2,270,876

 
$
2,201,540

 
$
2,114,652

 
$
1,986,438

 
 
 
 
 
 
 
 
 
 
Asset Quality:
 
 
 
 
 
 
 
 
 
Nonaccrual loans
$
13,373

 
$
13,328

 
$
13,913

 
$
19,330

 
$
19,315

Accruing loans 90 or more days past due

 

 

 

 

   Total nonperforming loans
13,373

 
13,328

 
13,913

 
19,330

 
19,315

Other real estate
365

 
365

 
453

 
365

 
365

Other repossessed assets
443

 
205

 
205

 
205

 
260

Total nonperforming assets
$
14,181

 
$
13,898

 
$
14,571

 
$
19,900

 
$
19,940

 
 
 
 
 
 
 
 
 
 
Net (recoveries) charge-offs
$
(327
)
 
$
2,003

 
$
4,196

 
$
684

 
$
567

 
 
 
 
 
 
 
 
 
 
Nonaccrual loans:
 
 
 
 
 
 
 
 
 
Commercial and industrial
$
6,153

 
$
6,437

 
$
5,031

 
$
9,051

 
$
8,933

Mortgage warehouse

 

 

 

 

Real estate:
 
 
 
 
 
 
 
 
 
Commercial real estate (including multi-family residential)
6,466

 
6,110

 
8,097

 
9,556

 
9,726

Commercial real estate construction and land development

 

 

 

 
70

1-4 family residential (including home equity)
754

 
781

 
735

 
568

 
574

Residential construction

 

 

 

 

Consumer and other

 

 
50

 
155

 
12

  Total nonaccrual loans
$
13,373

 
$
13,328

 
$
13,913

 
$
19,330

 
$
19,315

 
 
 
 
 
 
 
 
 
 
Asset Quality Ratios:
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
0.49
 %
 
0.49
%
 
0.52
%
 
0.73
%
 
0.77
%
Nonperforming loans to total loans
0.58
 %
 
0.59
%
 
0.63
%
 
0.91
%
 
0.97
%
Allowance for loan losses to nonperforming loans
184.16
 %
 
177.44
%
 
170.50
%
 
108.69
%
 
96.75
%
Allowance for loan losses to total loans
1.08
 %
 
1.04
%
 
1.08
%
 
0.99
%
 
0.94
%
Net (recoveries) charge-offs to average loans (annualized)
(0.06
)%
 
0.36
%
 
0.78
%
 
0.13
%
 
0.12
%

8



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 common 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
 
 
2018
 
2017
 
 
 March 31
 
 December 31
 
 September 30
 
 June 30
 
 March 31
 
 
(Dollars and share amounts in thousands, except per share data)
Total shareholders' equity
 
$
311,988

 
$
306,865

 
$
302,727

 
$
298,459

 
$
289,130

Less: Goodwill and core deposit intangibles, net
 
42,468

 
42,663

 
42,858

 
43,053

 
43,249

Tangible shareholders’ equity
 
$
269,520

 
$
264,202

 
$
259,869

 
$
255,406

 
$
245,881

 
 
 
 
 
 
 
 
 
 
 
Shares outstanding at end of period
 
13,301

 
13,227

 
13,171

 
13,153

 
13,080

 
 
 
 
 
 
 
 
 
 
 
Tangible book value per share
 
$
20.26

 
$
19.97

 
$
19.73

 
$
19.42

 
$
18.80

 
 
 
 
 
 
 
 
 
 
 
Net income attributable to shareholders
 
$
7,711

 
$
3,204

 
$
2,986

 
$
5,395

 
$
6,047

 
 
 
 
 
 
 
 
 
 
 
Average shareholders' equity
 
$
309,545

 
$
306,346

 
$
303,449

 
$
295,524

 
$
284,889

Less: Average goodwill and core deposit intangibles, net
 
42,589

 
42,758

 
42,954

 
43,149

 
43,345

Average tangible shareholders’ equity
 
$
266,954

 
$
263,588

 
$
260,495

 
$
252,375

 
$
241,544

 
 
 
 
 
 
 
 
 
 
 
Return on average tangible equity
 
11.71
%
 
4.82
%
 
4.55
%
 
8.57
%
 
10.15
%
 
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
2,886,484

 
$
2,860,231

 
$
2,813,434

 
$
2,724,716

 
$
2,592,330

Less: Goodwill and core deposit intangibles, net
 
42,468

 
42,663

 
42,858

 
43,053

 
43,249

Tangible assets
 
$
2,844,016

 
$
2,817,568

 
$
2,770,576

 
$
2,681,663

 
$
2,549,081

 
 
 
 
 
 
 
 
 
 
 
Tangible equity to tangible assets
 
9.48
%
 
9.38
%
 
9.38
%
 
9.52
%
 
9.65
%



9

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