EX-99.1 2 abtx-ex991_17.htm EX-99.1 abtx-ex991_17.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

FIRST QUARTER 2021 RECORD RESULTS

 

 

Record net income and diluted earnings per share of $18.0 million and $0.89, respectively

 

 

Funded in excess of $1.04 billion in loans over the last year within the Small Business Administration Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security Act (CARES Act)

 

 

Deposit growth of 35.9% to $5.37 billion as of March 31, 2021 from $3.95 billion as of March 31, 2020, driven by $696.6 million, or 57.2%, growth in noninterest-bearing deposits

 

 

Board declared quarterly dividend of $0.12 per share of common stock and authorized repurchases of up to 1 million shares

 

HOUSTON, April 29, 2021 - Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the holding company of Allegiance Bank (the "Bank"), today reported record net income of $18.0 million and diluted earnings per share of $0.89 for the first quarter 2021 compared to net income of $3.5 million and diluted earnings per share of $0.17 for the first quarter 2020.  The first quarter 2021 results were primarily driven by increased net interest income primarily due to lower funding costs and lower provision expense.

 

“Allegiance is off to a very productive start in 2021. We are proud to report record quarterly earnings results while continuing to maintain stable asset quality,” said Steve Retzloff, Allegiance’s Chief Executive Officer. “We reached record highs in terms of net income, diluted earnings per share, return on average assets and preserved a solid net interest margin all due to the successful execution of our core strategies,” continued Retzloff.

 

“These exceptional results highlight our team’s unparalleled and coordinated effort to assist our customers during the PPP process by funding over $1.04 billion of loans since the beginning of the pandemic. A high percentage of these loans were to businesses who were not previously customers and who experienced, first hand, the value of our high service culture.  We look forward to solidifying these relationships over the coming months. Our team is excited about the future of Allegiance and continues to believe that providing remarkable service to our customers and our community sets us apart as the Houston region’s premier community bank and will continue to drive future value,” concluded Retzloff.

 

First Quarter 2021 Results

 

Net interest income before the provision for credit losses in the first quarter 2021 increased $10.7 million, or 23.7%, to $55.7 million from $45.0 million for the first quarter 2020 and increased $796 thousand, or 1.4%, from $54.9 million in the fourth quarter 2020.  These increases were primarily due to changes in the volume and relative mix of the underlying assets and liabilities, the impact of PPP loans as well as lower costs on interest-bearing liabilities.  The net interest margin on a tax equivalent basis increased 4 basis points to 4.19% for the first quarter 2021 from 4.15% for the first quarter 2020 and increased 5 basis points from 4.14% for the fourth quarter 2020.

 

Noninterest income for the first quarter 2021 was $1.7 million, a decrease of $989 thousand, or 36.3%, compared to $2.7 million for the first quarter 2020 and decreased $283 thousand, or 14.0%, compared to $2.0 million for the fourth quarter 2020.  First quarter 2021 noninterest income reflected lower transactional fee income, significantly lower correspondent bank rebates, lower gains on sales of securities and higher losses on sales of other real estate when compared to first quarter 2020.  

 

Noninterest expense for the first quarter 2021 increased $2.5 million, or 7.8%, to $34.9 million from $32.4 million for the first quarter 2020 and increased $2.2 million, or 6.6%, compared to the fourth quarter 2020 primarily due to increases in salaries and benefits.

 

In the first quarter 2021, Allegiance’s efficiency ratio decreased to 60.85% compared to 68.13% for the first quarter 2020 and increased from 57.53% for the fourth quarter 2020. First quarter 2021 annualized returns on average assets, average equity and average tangible equity were

1


1.18%, 9.59% and 14.03%, respectively, compared to 0.29%, 1.98% and 3.02%, respectively, for the first quarter 2020.  Annualized returns on average assets, average equity and average tangible equity for the fourth quarter 2020 were 1.05%, 8.38% and 12.32%, 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, 2021 increased $380.9 million, or 25.2% (annualized), to $6.43 billion compared to $6.05 billion at December 31, 2020 and increased $1.43 billion, or 28.6%, compared to $5.00 billion at March 31, 2020, primarily due to the origination of PPP loans and growth in the securities portfolio.

 

Total loans at March 31, 2021 increased $167.4 million, or 14.9% (annualized), to $4.66 billion compared to $4.49 billion at December 31, 2020, primarily due to the origination of $331.9 million of PPP loans, and increased $703.6 million, or 17.8%, compared to $3.96 billion at March 31, 2020. Core loans, which exclude the mortgage warehouse portfolio and PPP loans, increased $8.9 million, or 0.9% (annualized), to $3.93 billion at March 31, 2021 from $3.92 billion at December 31, 2020 and decreased $23.8 million, or 0.6%, from $3.95 billion at March 31, 2020.

 

Deposits at March 31, 2021 increased $385.7 million, or 30.9% (annualized), to $5.37 billion compared to $4.99 billion at December 31, 2020 and increased $1.42 billion, or 35.9%, compared to $3.95 billion at March 31, 2020.

 

Asset Quality

 

Nonperforming assets totaled $35.6 million, or 0.55% of total assets, at March 31, 2021, compared to $38.1 million, or 0.63% of total assets, at December 31, 2020 and $34.2 million, or 0.68% of total assets, at March 31, 2020. The allowance for credit losses on loans as a percentage of total loans was 1.13% at March 31, 2021 and 1.18% at December 31, 2020.

 

The provision for credit losses for the first quarter 2021 was $639 thousand compared to $4.4 million for the fourth quarter 2020 and $11.0 million for the first quarter 2020. The increased provision during 2020 reflected the uncertainty surrounding unemployment, the economic impact caused by COVID-19 and the economic effects related to the sustained lower crude oil prices.

 

First quarter 2021 net charge-offs were $345 thousand, or 0.03% (annualized) of average loans, a decrease from net charge-offs of $4.3 million, or 0.37% (annualized) of average loans, for the fourth quarter 2020 and $2.9 million, or 0.30% (annualized) of average loans, for the first quarter 2020.

 

The Company is carefully monitoring the hotel, restaurant and bar, and oil and gas portfolios, which it believes are at heightened risk due to the current economic environment. Loan balances in the hotel industry, excluding PPP loans, totaled $125.2 million, or 2.7% of total loans, at March 31, 2021, of which $6.2 million were on nonaccrual. At March 31, 2021, restaurant and bar industry loans, excluding PPP loans, totaled $116.2 million, or 2.5%, of total loans, of which $486 thousand were on nonaccrual. At March 31, 2021, the Company’s allowance for credit losses on loans allocated to its hotel portfolio was 3.5% of total hotel loans and its restaurant and bar portfolio was 1.3% of total restaurant and bar loans. The oil and gas portfolio, excluding PPP loans, totaled $72.5 million, or 1.6%, of total loans at March 31, 2021, of which $3.6 million were on nonaccrual. At March 31, 2021, the allowance for credit losses on loans allocated to the oil and gas loan portfolio was 3.4% of total oil and gas loans.

 

The Company granted initial principal and interest deferrals on outstanding loan balances to borrowers in connection with the COVID-19 relief provided by the CARES Act and subsequent deferrals upon request and after meeting certain conditions.  These deferrals were generally no more than 90 days in duration. As of March 31, 2021, 65 loans with outstanding loan balances of $62.1 million remained on deferral.

 

Dividend

 

The Board of Directors of Allegiance has declared a cash dividend of $0.12 per share to be paid on June 15, 2021 to all shareholders of record as of May 28, 2021. The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.

 

Share Repurchase Authorization

 

The Board of Directors of Allegiance approved a stock repurchase authorization, under which Allegiance may repurchase up to one million shares of its outstanding common stock at the discretion of management through April 30, 2022. Repurchases under this program may be made from time to time through open market purchases, privately negotiated transactions or such other manners as will comply with applicable laws and regulations. Allegiance’s previously announced share repurchase program recently expired on March 31, 2021.

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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 29, 2021 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first quarter 2021 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 3792638.  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, 2021, Allegiance was a $6.43 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, 2021, 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 in the Houston metropolitan area and one bank office 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, 2020 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)

 

 

 

2021

 

 

2020

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

 

(Dollars in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

141,947

 

 

$

122,897

 

 

$

327,416

 

 

$

237,585

 

 

$

156,700

 

Interest-bearing deposits at other financial

   institutions

 

 

482,383

 

 

 

299,869

 

 

 

19,732

 

 

 

28,815

 

 

 

18,189

 

Total cash and cash equivalents

 

 

624,330

 

 

 

422,766

 

 

 

347,148

 

 

 

266,400

 

 

 

174,889

 

Available for sale securities, at fair value

 

 

787,516

 

 

 

772,890

 

 

 

663,301

 

 

 

618,751

 

 

 

508,250

 

Loans held for investment

 

 

4,659,169

 

 

 

4,491,764

 

 

 

4,592,362

 

 

 

4,583,656

 

 

 

3,955,546

 

Less: allowance for credit losses on loans

 

 

(52,758

)

 

 

(53,173

)

 

 

(48,698

)

 

 

(47,642

)

 

 

(37,511

)

Loans, net

 

 

4,606,411

 

 

 

4,438,591

 

 

 

4,543,664

 

 

 

4,536,014

 

 

 

3,918,035

 

Accrued interest receivable

 

 

38,632

 

 

 

40,053

 

 

 

36,996

 

 

 

32,795

 

 

 

17,203

 

Premises and equipment, net

 

 

66,115

 

 

 

70,685

 

 

 

69,887

 

 

 

67,229

 

 

 

66,798

 

Other real estate owned

 

 

576

 

 

 

9,196

 

 

 

8,876

 

 

 

11,847

 

 

 

12,617

 

Federal Home Loan Bank stock

 

 

7,775

 

 

 

7,756

 

 

 

9,716

 

 

 

14,844

 

 

 

12,798

 

Bank owned life insurance

 

 

27,825

 

 

 

27,686

 

 

 

27,542

 

 

 

27,398

 

 

 

27,255

 

Goodwill

 

 

223,642

 

 

 

223,642

 

 

 

223,642

 

 

 

223,642

 

 

 

223,642

 

Core deposit intangibles, net

 

 

17,130

 

 

 

17,954

 

 

 

18,907

 

 

 

19,896

 

 

 

20,886

 

Other assets

 

 

31,038

 

 

 

18,909

 

 

 

18,072

 

 

 

18,065

 

 

 

20,056

 

Total assets

 

$

6,430,990

 

 

$

6,050,128

 

 

$

5,967,751

 

 

$

5,836,881

 

 

$

5,002,429

 

LIABILITIES AND SHAREHOLDERS’

   EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

1,914,121

 

 

$

1,704,567

 

 

$

1,772,700

 

 

$

1,754,128

 

 

$

1,217,532

 

Interest-bearing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

 

480,710

 

 

 

437,328

 

 

 

409,137

 

 

 

375,353

 

 

 

341,524

 

Money market and savings

 

 

1,617,823

 

 

 

1,499,938

 

 

 

1,483,370

 

 

 

1,270,437

 

 

 

1,110,631

 

Certificates and other time

 

 

1,361,535

 

 

 

1,346,649

 

 

 

1,252,159

 

 

 

1,300,793

 

 

 

1,283,887

 

Total interest-bearing deposits

 

 

3,460,068

 

 

 

3,283,915

 

 

 

3,144,666

 

 

 

2,946,583

 

 

 

2,736,042

 

Total deposits

 

 

5,374,189

 

 

 

4,988,482

 

 

 

4,917,366

 

 

 

4,700,711

 

 

 

3,953,574

 

Accrued interest payable

 

 

3,862

 

 

 

2,701

 

 

 

3,082

 

 

 

3,293

 

 

 

3,821

 

Borrowed funds

 

 

147,517

 

 

 

155,515

 

 

 

155,512

 

 

 

255,509

 

 

 

190,506

 

Subordinated debt

 

 

108,453

 

 

 

108,322

 

 

 

108,191

 

 

 

108,061

 

 

 

107,930

 

Other liabilities

 

 

36,432

 

 

 

36,439

 

 

 

30,547

 

 

 

33,164

 

 

 

40,005

 

Total liabilities

 

 

5,670,453

 

 

 

5,291,459

 

 

 

5,214,698

 

 

 

5,100,738

 

 

 

4,295,836

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

20,183

 

 

 

20,208

 

 

 

20,445

 

 

 

20,431

 

 

 

20,355

 

Capital surplus

 

 

505,307

 

 

 

508,794

 

 

 

516,151

 

 

 

515,045

 

 

 

513,894

 

Retained earnings

 

 

210,834

 

 

 

195,236

 

 

 

186,866

 

 

 

172,723

 

 

 

164,858

 

Accumulated other comprehensive

   income

 

 

24,213

 

 

 

34,431

 

 

 

29,591

 

 

 

27,944

 

 

 

7,486

 

Total shareholders’ equity

 

 

760,537

 

 

 

758,669

 

 

 

753,053

 

 

 

736,143

 

 

 

706,593

 

TOTAL LIABILITIES AND

   SHAREHOLDERS’ EQUITY

 

$

6,430,990

 

 

$

6,050,128

 

 

$

5,967,751

 

 

$

5,836,881

 

 

$

5,002,429

 

 

4


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

Three Months Ended

 

 

 

2021

 

 

2020

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

 

(Dollars in thousands, except per share data)

 

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Loans, including fees

 

$

57,991

 

 

$

58,496

 

 

$

56,418

 

 

$

56,421

 

 

$

54,624

 

   Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      Taxable

 

 

2,402

 

 

 

2,203

 

 

 

2,095

 

 

 

1,842

 

 

 

2,087

 

      Tax-exempt

 

 

2,394

 

 

 

2,316

 

 

 

2,280

 

 

 

2,169

 

 

 

546

 

   Deposits in other financial

      institutions

 

 

41

 

 

 

32

 

 

 

18

 

 

 

20

 

 

 

195

 

         Total interest income

 

 

62,828

 

 

 

63,047

 

 

 

60,811

 

 

 

60,452

 

 

 

57,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Demand, money market and

      savings deposits

 

 

1,484

 

 

 

1,621

 

 

 

1,657

 

 

 

1,729

 

 

 

4,364

 

   Certificates and other time

      deposits

 

 

3,665

 

 

 

4,507

 

 

 

5,239

 

 

 

5,845

 

 

 

6,084

 

   Borrowed funds

 

 

539

 

 

 

557

 

 

 

558

 

 

 

562

 

 

 

506

 

   Subordinated debt

 

 

1,442

 

 

 

1,460

 

 

 

1,448

 

 

 

1,469

 

 

 

1,473

 

         Total interest expense

 

 

7,130

 

 

 

8,145

 

 

 

8,902

 

 

 

9,605

 

 

 

12,427

 

NET INTEREST INCOME

 

 

55,698

 

 

 

54,902

 

 

 

51,909

 

 

 

50,847

 

 

 

45,025

 

Provision for credit losses

 

 

639

 

 

 

4,368

 

 

 

1,347

 

 

 

10,669

 

 

 

10,990

 

Net interest income after provision

   for credit losses

 

 

55,059

 

 

 

50,534

 

 

 

50,562

 

 

 

40,178

 

 

 

34,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Nonsufficient funds fees

 

 

83

 

 

 

100

 

 

 

75

 

 

 

60

 

 

 

169

 

   Service charges on deposit

      accounts

 

 

388

 

 

 

405

 

 

 

325

 

 

 

343

 

 

 

457

 

   Gain on sale of securities

 

 

49

 

 

 

 

 

 

 

 

 

93

 

 

 

194

 

   (Loss) gain on sales of other real

      estate and repossessed assets

 

 

(176

)

 

 

 

 

 

117

 

 

 

(306

)

 

 

(69

)

   Bank owned life insurance

 

 

139

 

 

 

144

 

 

 

144

 

 

 

143

 

 

 

151

 

   Rebate from correspondent bank

 

 

132

 

 

 

196

 

 

 

98

 

 

 

89

 

 

 

493

 

   Other

 

 

1,121

 

 

 

1,174

 

 

 

1,091

 

 

 

1,140

 

 

 

1,330

 

      Total noninterest income

 

 

1,736

 

 

 

2,019

 

 

 

1,850

 

 

 

1,562

 

 

 

2,725

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Salaries and employee benefits

 

 

22,452

 

 

 

21,003

 

 

 

20,034

 

 

 

19,334

 

 

 

19,781

 

   Net occupancy and equipment

 

 

2,390

 

 

 

2,079

 

 

 

2,057

 

 

 

1,926

 

 

 

1,907

 

   Depreciation

 

 

1,034

 

 

 

1,019

 

 

 

946

 

 

 

885

 

 

 

866

 

   Data processing and software

      amortization

 

 

2,200

 

 

 

2,107

 

 

 

2,125

 

 

 

1,934

 

 

 

1,826

 

   Professional fees

 

 

789

 

 

 

999

 

 

 

756

 

 

 

800

 

 

 

573

 

   Regulatory assessments and

      FDIC insurance

 

 

807

 

 

 

810

 

 

 

875

 

 

 

609

 

 

 

632

 

   Core deposit intangibles

      amortization

 

 

824

 

 

 

953

 

 

 

989

 

 

 

990

 

 

 

990

 

   Communications

 

 

321

 

 

 

225

 

 

 

355

 

 

 

390

 

 

 

417

 

   Advertising

 

 

298

 

 

 

347

 

 

 

327

 

 

 

370

 

 

 

521

 

   Other real estate expense

 

 

113

 

 

 

382

 

 

 

2,017

 

 

 

114

 

 

 

2,649

 

   Other

 

 

3,691

 

 

 

2,825

 

 

 

2,084

 

 

 

2,427

 

 

 

2,239

 

      Total noninterest expense

 

 

34,919

 

 

 

32,749

 

 

 

32,565

 

 

 

29,779

 

 

 

32,401

 

INCOME BEFORE INCOME

   TAXES

 

 

21,876

 

 

 

19,804

 

 

 

19,847

 

 

 

11,961

 

 

 

4,359

 

   Provision for income taxes

 

 

3,866

 

 

 

3,863

 

 

 

3,677

 

 

 

2,054

 

 

 

843

 

NET INCOME

 

$

18,010

 

 

$

15,941

 

 

$

16,170

 

 

$

9,907

 

 

$

3,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

$

0.89

 

 

$

0.78

 

 

$

0.79

 

 

$

0.49

 

 

$

0.17

 

   Diluted

 

$

0.89

 

 

$

0.77

 

 

$

0.79

 

 

$

0.48

 

 

$

0.17

 

5


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

Three Months Ended

 

 

 

2021

 

 

2020

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

 

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

 

Net income

 

$

18,010

 

 

$

15,941

 

 

$

16,170

 

 

$

9,907

 

 

$

3,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, basic

 

$

0.89

 

 

$

0.78

 

 

$

0.79

 

 

$

0.49

 

 

$

0.17

 

Earnings per share, diluted

 

$

0.89

 

 

$

0.77

 

 

$

0.79

 

 

$

0.48

 

 

$

0.17

 

Dividends per share

 

$

0.12

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets(A)

 

 

1.18

%

 

 

1.05

%

 

 

1.09

%

 

 

0.71

%

 

 

0.29

%

Return on average equity(A)

 

 

9.59

%

 

 

8.38

%

 

 

8.59

%

 

 

5.51

%

 

 

1.98

%

Return on average tangible

   equity(A)(B)

 

 

14.03

%

 

 

12.32

%

 

 

12.72

%

 

 

8.32

%

 

 

3.02

%

Net interest margin

   (tax equivalent)(A)(C)

 

 

4.19

%

 

 

4.14

%

 

 

3.95

%

 

 

4.10

%

 

 

4.15

%

Efficiency ratio(D)

 

 

60.85

%

 

 

57.53

%

 

 

60.58

%

 

 

56.92

%

 

 

68.13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allegiance Bancshares, Inc.

   (Consolidated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Equity to assets

 

 

11.83

%

 

 

12.54

%

 

 

12.62

%

 

 

12.61

%

 

 

14.12

%

  Tangible equity to tangible

   assets(B)

 

 

8.40

%

 

 

8.90

%

 

 

8.92

%

 

 

8.81

%

 

 

9.71

%

  Estimated common equity

     tier 1 capital

 

 

11.87

%

 

 

11.80

%

 

 

11.73

%

 

 

11.36

%

 

 

11.15

%

  Estimated tier 1 risk-based

     capital

 

 

12.10

%

 

 

12.04

%

 

 

11.96

%

 

 

11.60

%

 

 

11.38

%

  Estimated total risk-based

     capital

 

 

15.72

%

 

 

15.71

%

 

 

15.56

%

 

 

15.17

%

 

 

14.72

%

  Estimated tier 1 leverage

     capital

 

 

8.57

%

 

 

8.51

%

 

 

8.70

%

 

 

8.83

%

 

 

9.89

%

Allegiance Bank

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Estimated common equity

     tier 1 capital

 

 

13.17

%

 

 

13.32

%

 

 

13.25

%

 

 

12.84

%

 

 

12.58

%

  Estimated tier 1 risk-based

     capital

 

 

13.17

%

 

 

13.32

%

 

 

13.25

%

 

 

12.84

%

 

 

12.58

%

  Estimated total risk-based

     capital

 

 

15.37

%

 

 

15.55

%

 

 

15.41

%

 

 

14.97

%

 

 

14.48

%

  Estimated tier 1 leverage

     capital

 

 

9.33

%

 

 

9.41

%

 

 

9.64

%

 

 

9.77

%

 

 

10.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Basic

 

 

20,140

 

 

 

20,396

 

 

 

20,439

 

 

 

20,414

 

 

 

20,411

 

   Diluted

 

 

20,342

 

 

 

20,575

 

 

 

20,532

 

 

 

20,514

 

 

 

20,690

 

Period end shares

   outstanding

 

 

20,183

 

 

 

20,208

 

 

 

20,445

 

 

 

20,431

 

 

 

20,355

 

Book value per share

 

$

37.68

 

 

$

37.54

 

 

$

36.83

 

 

$

36.03

 

 

$

34.71

 

Tangible book value per

   share(B)

 

$

25.75

 

 

$

25.59

 

 

$

24.97

 

 

$

24.11

 

 

$

22.70

 

(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 total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. 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, 2021

 

 

December 31, 2020

 

 

March 31, 2020

 

 

 

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

 

$

4,571,045

 

 

$

57,991

 

 

 

5.15

%

 

$

4,569,210

 

 

$

58,496

 

 

 

5.09

%

 

$

3,933,291

 

 

$

54,624

 

 

 

5.59

%

Securities

 

 

789,188

 

 

 

4,796

 

 

 

2.46

%

 

 

701,233

 

 

 

4,519

 

 

 

2.56

%

 

 

388,721

 

 

 

2,633

 

 

 

2.72

%

Deposits in other financial

   institutions and other

 

 

96,212

 

 

 

41

 

 

 

0.17

%

 

 

58,664

 

 

 

32

 

 

 

0.22

%

 

 

50,711

 

 

 

195

 

 

 

1.55

%

Total interest-earning assets

 

 

5,456,445

 

 

$

62,828

 

 

 

4.67

%

 

 

5,329,107

 

 

$

63,047

 

 

 

4.71

%

 

 

4,372,723

 

 

$

57,452

 

 

 

5.28

%

Allowance for credit losses

   on loans

 

 

(53,370

)

 

 

 

 

 

 

 

 

 

 

(53,260

)

 

 

 

 

 

 

 

 

 

 

(28,718

)

 

 

 

 

 

 

 

 

Noninterest-earning assets

 

 

760,762

 

 

 

 

 

 

 

 

 

 

 

783,200

 

 

 

 

 

 

 

 

 

 

 

602,778

 

 

 

 

 

 

 

 

 

Total assets

 

$

6,163,837

 

 

 

 

 

 

 

 

 

 

$

6,059,047

 

 

 

 

 

 

 

 

 

 

$

4,946,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and

   Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

   deposits

 

$

458,063

 

 

$

371

 

 

 

0.33

%

 

$

430,145

 

 

$

386

 

 

 

0.36

%

 

$

363,326

 

 

$

846

 

 

 

0.94

%

Money market and savings

   deposits

 

 

1,539,127

 

 

 

1,113

 

 

 

0.29

%

 

 

1,513,816

 

 

 

1,235

 

 

 

0.32

%

 

 

1,168,541

 

 

 

3,518

 

 

 

1.21

%

Certificates and other time

   deposits

 

 

1,332,663

 

 

 

3,665

 

 

 

1.12

%

 

 

1,284,181

 

 

 

4,507

 

 

 

1.40

%

 

 

1,193,427

 

 

 

6,084

 

 

 

2.05

%

Borrowed funds

 

 

154,927

 

 

 

539

 

 

 

1.41

%

 

 

157,687

 

 

 

557

 

 

 

1.41

%

 

 

140,999

 

 

 

506

 

 

 

1.44

%

Subordinated debt

 

 

108,387

 

 

 

1,442

 

 

 

5.40

%

 

 

108,259

 

 

 

1,460

 

 

 

5.37

%

 

 

107,865

 

 

 

1,473

 

 

 

5.49

%

      Total interest-bearing

         liabilities

 

 

3,593,167

 

 

$

7,130

 

 

 

0.80

%

 

 

3,494,088

 

 

$

8,145

 

 

 

0.93

%

 

 

2,974,158

 

 

$

12,427

 

 

 

1.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing

   Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

   deposits

 

 

1,767,740

 

 

 

 

 

 

 

 

 

 

 

1,766,826

 

 

 

 

 

 

 

 

 

 

 

1,225,888

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

41,330

 

 

 

 

 

 

 

 

 

 

 

41,434

 

 

 

 

 

 

 

 

 

 

 

33,202

 

 

 

 

 

 

 

 

 

      Total liabilities

 

 

5,402,237

 

 

 

 

 

 

 

 

 

 

 

5,302,348

 

 

 

 

 

 

 

 

 

 

 

4,233,248

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

761,600

 

 

 

 

 

 

 

 

 

 

 

756,699

 

 

 

 

 

 

 

 

 

 

 

713,535

 

 

 

 

 

 

 

 

 

      Total liabilities and

         shareholders' equity

 

$

6,163,837

 

 

 

 

 

 

 

 

 

 

$

6,059,047

 

 

 

 

 

 

 

 

 

 

$

4,946,783

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

 

 

 

 

 

 

 

 

 

3.87

%

 

 

 

 

 

 

 

 

 

 

3.78

%

 

 

 

 

 

 

 

 

 

 

3.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and margin

 

 

 

 

 

$

55,698

 

 

 

4.14

%

 

 

 

 

 

$

54,902

 

 

 

4.10

%

 

 

 

 

 

$

45,025

 

 

 

4.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income and net

   interest margin (tax equivalent)

 

 

 

 

 

$

56,317

 

 

 

4.19

%

 

 

 

 

 

$

55,477

 

 

 

4.14

%

 

 

 

 

 

$

45,152

 

 

 

4.15

%

 

 

 


7


Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

 

 

 

Three Months Ended

 

 

 

2021

 

 

2020

 

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

 

(Dollars in thousands)

 

Period-end Loan Portfolio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

664,792

 

 

$

667,079

 

 

$

650,634

 

 

$

651,430

 

 

$

702,267

 

Mortgage warehouse

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,051

 

Paycheck Protection Program (PPP)

 

 

728,424

 

 

 

569,901

 

 

 

710,234

 

 

 

695,772

 

 

 

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate (including

      multi-family residential)

 

 

2,018,853

 

 

 

1,999,877

 

 

 

1,971,228

 

 

 

1,956,116

 

 

 

1,951,080

 

   Commercial real estate construction and

      land development

 

 

386,637

 

 

 

367,213

 

 

 

376,877

 

 

 

386,865

 

 

 

378,987

 

   1-4 family residential (including home equity)

 

 

726,228

 

 

 

737,605

 

 

 

716,565

 

 

 

703,513

 

 

 

704,212

 

   Residential construction

 

 

119,528

 

 

 

127,522

 

 

 

148,056

 

 

 

171,656

 

 

 

177,025

 

Consumer and other

 

 

14,707

 

 

 

22,567

 

 

 

18,768

 

 

 

18,304

 

 

 

40,924

 

Total loans

 

$

4,659,169

 

 

$

4,491,764

 

 

$

4,592,362

 

 

$

4,583,656

 

 

$

3,955,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

35,051

 

 

$

28,893

 

 

$

37,928

 

 

$

33,223

 

 

$

21,621

 

Accruing loans 90 or more days past due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming loans

 

 

35,051

 

 

 

28,893

 

 

 

37,928

 

 

 

33,223

 

 

 

21,621

 

Other real estate

 

 

576

 

 

 

9,196

 

 

 

8,876

 

 

 

11,847

 

 

 

12,617

 

Other repossessed assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total nonperforming assets

 

$

35,627

 

 

$

38,089

 

 

$

46,804

 

 

$

45,070

 

 

$

34,238

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net charge-offs

 

$

345

 

 

$

4,287

 

 

$

291

 

 

$

538

 

 

$

2,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

14,059

 

 

$

10,747

 

 

$

13,171

 

 

$

12,578

 

 

$

8,669

 

Mortgage warehouse

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Commercial real estate (including

      multi-family residential)

 

 

13,455

 

 

 

10,081

 

 

 

15,849

 

 

 

16,127

 

 

 

7,024

 

   Commercial real estate construction and

      land development

 

 

1,000

 

 

 

3,011

 

 

 

3,085

 

 

 

53

 

 

 

1,958

 

   1-4 family residential (including home equity)

 

 

5,736

 

 

 

4,525

 

 

 

4,263

 

 

 

3,434

 

 

 

2,845

 

   Residential construction

 

 

 

 

 

 

 

 

876

 

 

 

898

 

 

 

982

 

Consumer and other

 

 

801

 

 

 

529

 

 

 

684

 

 

 

133

 

 

 

143

 

Total nonaccrual loans

 

$

35,051

 

 

$

28,893

 

 

$

37,928

 

 

$

33,223

 

 

$

21,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.55

%

 

 

0.63

%

 

 

0.78

%

 

 

0.77

%

 

 

0.68

%

Nonperforming loans to total loans

 

 

0.75

%

 

 

0.64

%

 

 

0.83

%

 

 

0.72

%

 

 

0.55

%

Allowance for credit losses on loans to

   nonperforming loans

 

 

150.52

%

 

 

184.03

%

 

 

128.40

%

 

 

143.40

%

 

 

173.49

%

Allowance for credit losses on loans to total loans

 

 

1.13

%

 

 

1.18

%

 

 

1.06

%

 

 

1.04

%

 

 

0.95

%

Net charge-offs to average loans (annualized)

 

 

0.03

%

 

 

0.37

%

 

 

0.03

%

 

 

0.05

%

 

 

0.30

%


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 and 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

 

 

2021

 

 

2020

 

 

March 31

 

 

December 31

 

 

September 30

 

 

June 30

 

 

March 31

 

 

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

 

Total shareholders' equity

$

760,537

 

 

$

758,669

 

 

$

753,053

 

 

$

736,143

 

 

$

706,593

 

Less:  Goodwill and core

   deposit intangibles, net

 

240,772

 

 

 

241,596

 

 

 

242,549

 

 

 

243,538

 

 

 

244,528

 

Tangible shareholders’

   equity

$

519,765

 

 

$

517,073

 

 

$

510,504

 

 

$

492,605

 

 

$

462,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding at end of

   period

 

20,183

 

 

 

20,208

 

 

 

20,445

 

 

 

20,431

 

 

 

20,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share

$

25.75

 

 

$

25.59

 

 

$

24.97

 

 

$

24.11

 

 

$

22.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

18,010

 

 

$

15,941

 

 

$

16,170

 

 

$

9,907

 

 

$

3,516

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity

$

761,600

 

 

$

756,699

 

 

$

748,647

 

 

$

723,104

 

 

$

713,535

 

Less:  Average goodwill and

   core deposit intangibles, net

 

241,166

 

 

 

242,043

 

 

 

243,015

 

 

 

244,010

 

 

 

245,007

 

Average tangible

   shareholders’ equity

$

520,434

 

 

$

514,656

 

 

$

505,632

 

 

$

479,094

 

 

$

468,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average

   tangible equity(A)

 

14.03

%

 

 

12.32

%

 

 

12.72

%

 

 

8.32

%

 

 

3.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

6,430,990

 

 

$

6,050,128

 

 

$

5,967,751

 

 

$

5,836,881

 

 

$

5,002,429

 

Less: Goodwill and core

   deposit intangibles, net

 

240,772

 

 

 

241,596

 

 

 

242,549

 

 

 

243,538

 

 

 

244,528

 

Tangible assets

$

6,190,218

 

 

$

5,808,532

 

 

$

5,725,202

 

 

$

5,593,343

 

 

$

4,757,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible

   assets

 

8.40

%

 

 

8.90

%

 

 

8.92

%

 

 

8.81

%

 

 

9.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(A)

Interim periods annualized.

 

9