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Allegiance Bancshares, Inc. Reports Fourth Quarter 2015 Earnings

  • Core loans, excluding mortgage warehouse loans and loans held for sale, increased 4.6% for the fourth quarter 2015 over the third quarter 2015
  • Strong asset quality as evidenced by annualized net charge-offs of 0.06% for the fourth quarter 2015 and a nonperforming assets to total assets ratio of 0.30%
  • Completed Initial Public Offering of 2,990,000 shares generating net proceeds of approximately $57.2 million during the fourth quarter of 2015

HOUSTON, Jan. 26, 2016 (GLOBE NEWSWIRE) -- Allegiance Bancshares, Inc. (NASDAQ:ABTX), the holding company of Allegiance Bank (collectively, “Allegiance”), reported net income attributable to common stockholders for the three months ended December 31, 2015 of $4.2 million, a 4.1% increase compared to the three months ended September 30, 2015 and an 83.1% increase compared with the three months ended December 31, 2014. Diluted earnings per common share for the three months ended December 31, 2015 decreased 17.5% to $0.33, compared to $0.40 for the three months ended September 30, 2015, reflecting a 25.9% increase in weighted average diluted common shares outstanding due to Allegiance’s Initial Public Offering (IPO) completed during the fourth quarter of 2015, and increased 3.1% from $0.32 for the three months ended December 31, 2014. The shares issued in Allegiance’s IPO had a $0.09 impact on diluted earnings per common share for the three months ended December 31, 2015. Additionally, during the first quarter of 2015, Allegiance completed the acquisition of F&M Bancshares, Inc. (“F&M”) on January 1, 2015.

“We are pleased with our robust organic growth in the fourth quarter, which demonstrates the underlying strength of our business model,” said George Martinez, Allegiance’s Chairman and Chief Executive Officer. “We also delivered solid quarterly earnings driven by continuing growth in core loans, strong asset quality and a continuing focus on controlling costs.”

“2015 was a year of significant accomplishments for us, culminating with the completion of our initial public offering,” continued Martinez. “Proceeds received from the IPO were used to reduce the debt related to our F&M acquisition, and we ended 2015 with sufficient capital to continue our growth trajectory into 2016. We have, and will, continue to leverage the strength of our talented bankers as we continue to expand our presence in the Houston economy. While the Houston region has been impacted by the sharp decline in the price of crude oil, we view the current environment as an excellent opportunity for Allegiance to take advantage of the segment of the market that benefits from low energy prices.”

“Our super-community banking strategy offers a competitive advantage through our commitment to serving small to medium-sized business customers. Our unique strategy was designed to foster strong customer relationships while benefitting from a platform and scale that is competitive with larger local and regional banks. As part of our growth plan, we intend to continue to expand our market position primarily through organic growth, including the establishment of de novo branch locations.”

Results of operations for the three months ended December 31, 2015

Annualized returns on average assets, average common equity and average tangible common equity for the three months ended December 31, 2015 were 0.81%, 6.71% and 8.19%, respectively. Allegiance’s efficiency ratio for the three months ended December 31, 2015 decreased to 62.40% compared to 65.04% for the three months ended September 30, 2015 and from 71.56% for the three months ended December 31, 2014.

Net interest income before provision for loan losses for the three months ended December 31, 2015 increased 4.2% to $21.3 million, compared with $20.4 million during the three months ended September 30, 2015, primarily due to a $76.1 million or 4.3% increase in average interest-earning assets. Net interest income before provision for loan losses for the three months ended December 31, 2015 increased $8.7 million, or 68.8%, from $12.6 million for the three months ended December 31, 2014. This increase was primarily due to a 62.3% increase in average interest-earning assets as a result of the acquisition of F&M as well as organic growth within Allegiance’s loan portfolio. The net interest margin on a tax equivalent basis remained virtually flat from 4.61% for the three months ended September 30, 2015 to 4.60% for the three months ended December 31, 2015. Excluding the impact of acquisition accounting adjustments, the net interest margin for the three months ended December 31, 2015 would have been 4.47%, compared to 4.44% for the three months ended September 30, 2015. The net interest margin on a tax equivalent basis increased for the three months ended December 31, 2015 from 4.37% for the three months ended December 31, 2014.

On a linked quarter basis, noninterest income for the three months ended December 31, 2015 decreased $223 thousand, or 18.6%, primarily due to gains on the sale of loans recorded during the third quarter of 2015. Noninterest income for the three months ended December 31, 2015 increased $297 thousand, or 43.6%, to $978 thousand, compared with $681 thousand for the three months ended December 31, 2014. This increase was primarily due to increased fees and service charges resulting from the additional accounts acquired in the F&M acquisition.

Noninterest expense for the three months ended December 31, 2015 remained constant compared to the three months ended September 30, 2015, and increased $4.5 million, or 47.2%, to $13.9 million, compared with $9.4 million for the three months ended December 31, 2014. This increase was primarily due to additional noninterest expenses associated with operating a larger platform following the F&M acquisition.

Financial Condition

Total loans increased $64.6 million or 4.0% to $1.68 billion at December 31, 2015 from $1.62 billion at September 30, 2015 due to strong organic loan growth within Allegiance’s loan portfolio. During the three months ended December 31, 2015, core loans, which exclude the mortgage warehouse portfolio and loans held for sale, increased $70.6 million, but were partially offset by a decrease of $6.9 million in the mortgage warehouse portfolio, compared to the three months ended September 30, 2015. Total loans at December 31, 2015 increased $679.0 million, or 67.8%, compared with $1.0 billion at December 31, 2014, primarily due to loans acquired in the F&M acquisition as well as organic growth within Allegiance’s portfolio.

Average loans for the three months ended December 31, 2015 increased $58.6 million, or 3.7%, to $1.63 billion from $1.57 billion for the quarter ended September 30, 2015. Average loans for the three months ended December 31, 2015 increased $650.2 million, or 66.3%, from $980.9 million for the three months ended December 31, 2014.

Deposits increased $102.6 million, or 6.2%, to $1.76 billion at December 31, 2015 from $1.66 billion at September 30, 2015. Deposits at December 31, 2015 increased $625.5 million, or 55.2%, compared with $1.13 billion at December 31, 2014, primarily due to the deposits acquired in the F&M acquisition.

Average deposits for the three months ended December 31, 2015 increased $107.7 million, or 6.6%, to $1.74 billion, from $1.63 billion for the three months ended September 30, 2015. Average deposits for the three months ended December 31, 2015 increased $624.5 million, or 55.9%, compared with $1.12 billion for the three months ended December 31, 2014.

Asset Quality

Nonperforming assets totaled $6.2 million or 0.30% of total assets at December 31, 2015, compared with $6.3 million or 0.31% of total assets at September 30, 2015, and $3.2 million or 0.25% of total assets at December 31, 2014. The allowance for loan losses was 0.78% of total loans at December 31, 2015, 0.69% of total loans at September 30, 2015 and 0.82% of total loans at December 31, 2014.

The provision for loan losses for the three months ended December 31, 2015 was $2.2 million, or 0.53% (annualized) of average loans, compared with $1.5 million, or 0.39% (annualized) of average loans, for the three months ended September 30, 2015 and $500 thousand, or 0.20% (annualized) of average loans, for the three months ended December 31, 2014.

Net charge offs for the three months ended December 31, 2015 were $265 thousand, or 0.06% (annualized) of average loans, compared with $638 thousand, or 0.16% (annualized) of average loans, for the three months ended September 30, 2015.

GAAP Reconciliation of Non-GAAP Financial Measures

Allegiance’s management uses certain non-GAAP financial measures to evaluate its performance. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the tangible common equity to tangible assets ratio. Please refer to the GAAP Reconciliation and Management’s Explanation of non-GAAP Financial Measures at the end 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 Tuesday, January 26, 2016 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its fourth quarter 2015 earnings. Individuals and investment professionals may participate in the call by dialing (855) 717-7672. The conference ID number is 22569148.

Alternatively, a simultaneous webcast may be accessed via the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Upcoming Events.

Allegiance Bancshares, Inc.

As of December 31, 2015, Allegiance Bancshares Inc. is a $2.08 billion 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 Bank operates 16 full-service banking locations in the Houston metropolitan area and two full-service banking locations in Central Texas. Visit www.allegiancebank.com for more information.

Forward Looking Statements

“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. These statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “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; continue to 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 factors are discussed in Allegiance’s prospectus, filed with the SEC on October 8, 2015 pursuant to Rule 424(b)(4) under the Securities Act of 1933 relating to Allegiance’s Registration Statement on Form S-1, as amended (Registration No. 33-206536), that was declared effective by the SEC on October 7, 2015, and other reports and statements Allegiance has filed with the SEC. Copies of such filings are available for download free of charge from the Investor Relations section of the 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.

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
2015 2014
December 31 September 30 June 30 March 31 December 31
(Dollars in thousands)
Cash and cash equivalents$ 148,431 $ 144,590 $ 138,685 $ 252,558 $ 167,540
Available for sale securities 165,097 154,546 151,662 96,910 84,962
Total Loans (including loans held for sale) 1,681,052 1,616,416 1,561,657 1,444,732 1,002,054
Allowance for loan losses (13,098) (11,204) (10,312) (8,940) (8,246)
Loans, net 1,667,954 1,605,212 1,551,345 1,435,792 993,808
Goodwill 39,389 39,389 39,389 39,389 11,144
Core deposit intangibles, net 5,230 5,437 5,645 5,852 1,747
Premises and equipment, net 18,471 18,838 18,887 18,510 10,969
Bank owned life insurance 21,211 21,040 20,872 20,699 -
Other assets 18,796 23,298 18,671 15,176 9,838
Total assets$ 2,084,579 $ 2,012,350 $ 1,945,156 $ 1,884,886 $ 1,280,008
Noninterest-bearing deposits$ 620,320 $ 560,773 $ 556,502 $ 554,624 $ 373,795
Interest-bearing deposits 1,138,813 1,095,775 1,068,822 1,089,095 759,889
Total deposits 1,759,133 1,656,548 1,625,324 1,643,719 1,133,684
Short-term borrowings 50,000 115,000 75,000 - -
Subordinated debentures 9,089 9,062 9,032 8,953 -
Other borrowed funds 569 28,069 28,069 28,069 10,069
Other liabilities 7,298 7,628 5,901 5,121 4,477
Total liabilities 1,826,089 1,816,307 1,743,326 1,685,862 1,148,230
Preferred equity - - 11,550 11,550 -
Common equity 258,490 196,043 190,280 187,474 131,778
Stockholders' equity 258,490 196,043 201,830 199,024 131,778
Total liabilities and equity$ 2,084,579 $ 2,012,350 $ 1,945,156 $ 1,884,886 $ 1,280,008


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
Three Months Ended Year Ended
2015 2014 2015 2014
December 31 September 30 June 30 March 31 December 31 December 31 December 31
(Dollars in thousands)
INTEREST INCOME:
Loans, including fees$ 22,431 $ 21,627 $ 21,079 $ 20,306 $ 13,534 $ 85,443 $ 50,243
Securities 989 975 721 439 450 3,124 1,851
Deposits in other financial institutions 72 43 50 74 68 239 311
Total interest income 23,492 22,645 21,850 20,819 14,052 88,806 52,405
INTEREST EXPENSE:
Demand, money market and savings deposits 555 508 482 456 338 2,001 1,261
Certificates and other time deposits 1,494 1,324 1,254 1,200 1,046 5,272 4,081
Short-term borrowings 33 47 2 - - 82 -
Subordinated debt 139 114 162 163 - 578 -
Other borrowed funds 16 245 216 230 78 707 229
Total interest expense 2,237 2,238 2,116 2,049 1,462 8,640 5,571
NET INTEREST INCOME 21,255 20,407 19,734 18,770 12,590 80,166 46,834
Provision for loan losses 2,159 1,530 1,420 683 500 5,792 2,150
Net interest income after provision for loan losses 19,096 18,877 18,314 18,087 12,090 74,374 44,684
NONINTEREST INCOME:
Nonsufficient funds fees 191 179 168 165 120 703 455
Service charges on deposit accounts 166 163 176 175 112 680 490
Gains (losses) on sales of securities (37) - - - 82 (37) 82
Gains (losses) on sales of other real estate - 1 - (6) - (5) 188
Gains on sales of loans - 235 - - - 235 -
Other 658 623 603 532 367 2,416 1,392
Total noninterest income 978 1,201 947 866 681 3,992 2,607
NONINTEREST EXPENSE:
Salaries and employee benefits 8,905 8,996 8,481 8,942 5,682 35,324 20,179
Net occupancy and equipment 1,179 1,289 1,274 1,084 847 4,826 3,316
Data processing and software amortization 750 841 827 626 428 3,044 1,658
Professional fees 451 343 397 480 794 1,671 2,294
Regulatory assessments and FDIC insurance 356 296 320 374 211 1,346 848
Core deposit intangibles amortization 208 207 207 208 74 830 298
Depreciation 424 414 409 367 295 1,614 1,084
Communications 298 300 358 334 224 1,290 684
Advertising 271 188 184 138 207 781 601
Other 1,054 1,027 965 1,033 676 4,079 2,496
Total noninterest expense 13,896 13,901 13,422 13,586 9,438 54,805 33,458
INCOME BEFORE INCOME TAXES 6,178 6,177 5,839 5,367 3,333 23,561 13,833
Provision for income taxes 1,966 1,957 1,956 1,896 1,033 7,775 4,828
NET INCOME 4,212 4,220 3,883 3,471 2,300 15,786 9,005
Preferred stock dividends - 173 260 126 - 559 -
NET INCOME ATTRIBUTABLE TO COMMON
STOCKHOLDERS$ 4,212 $ 4,047 $ 3,623 $ 3,345 $ 2,300 $ 15,227 $ 9,005


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
Three Months Ended Year Ended
2015 2014 2015 2014
December 31 September 30 June 30 March 31 December 31 December 31 December 31
(Dollars and share amounts in thousands)
Net income$ 4,212 $ 4,220 $ 3,883 $ 3,471 $ 2,300 $ 15,786 $ 9,005
Net income attributable to common stockholders$ 4,212 $ 4,047 $ 3,623 $ 3,345 $ 2,300 $ 15,227 $ 9,005
Earnings per common share, basic$ 0.34 $ 0.41 $ 0.37 $ 0.34 $ 0.33 $ 1.45 $ 1.29
Earnings per common share, diluted$ 0.33 $ 0.40 $ 0.36 $ 0.33 $ 0.32 $ 1.43 $ 1.26
Return on average assets (A) 0.81% 0.85% 0.84% 0.77% 0.73% 0.81% 0.75%
Return on average common equity (A) 6.71% 8.27% 8.20% 7.56% 7.56% 7.43% 7.73%
Return on average tangible common equity (A) (B) 8.19% 10.77% 10.04% 9.62% 8.46% 9.52% 8.70%
Tax equivalent net interest margin (C) 4.60% 4.61% 4.79% 4.72% 4.37% 4.68% 4.31%
Efficiency ratio(D) 62.40% 65.04% 64.90% 69.19% 71.56% 65.27% 67.79%
Liquidity and Capital Ratios
Equity to assets 12.40% 9.74% 10.38% 10.56% 10.30% 12.40% 10.30%
Common equity Tier 1 capital 11.71% 8.61% 8.68% 8.98% N/A 11.71% N/A
Tier 1 risk-based capital 12.20% 9.12% 9.88% 10.25% 11.96% 12.20% 11.96%
Total risk-based capital 12.92% 9.75% 10.48% 10.80% 12.80% 12.92% 12.80%
Tier 1 leverage capital 11.02% 8.37% 9.34% 9.22% 9.55% 11.02% 9.55%
Tangible common equity to tangible assets(B) 10.48% 7.69% 7.64% 7.73% 9.38% 10.48% 9.38%
Other Data
Weighted average shares:
Basic 12,390 9,823 9,825 9,823 6,995 10,470 6,978
Diluted 12,589 10,003 10,004 9,999 7,169 10,654 7,142
Period end shares outstanding 12,813 9,823 9,823 9,824 7,477 12,813 7,477
Book value per common share$ 20.17 $ 19.96 $ 19.37 $ 19.08 $ 17.62 $ 20.17 $ 17.62
Tangible book value per common share(B)$ 16.69 $ 15.39 $ 14.79 $ 14.48 $ 15.90 $ 16.69 $ 15.90
(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 at the end 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 assets and securities. Additionally, taxes and provision for loan losses are not part of this calculation.


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
Three Months Ended
December 31, 2015 September 30, 2015 December 31, 2014
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$ 1,631,068 $ 22,431 5.46% $ 1,572,441 $ 21,627 5.46% $ 980,853 $ 13,534 5.47%
Securities 161,245 989 2.43% 162,308 975 2.38% 89,196 450 2.00%
Deposits in other financial institutions 72,262 72 0.40% 53,759 43 0.31% 79,087 68 0.34%
Total interest-earning assets 1,864,575 $ 23,492 5.00% 1,788,508 $ 22,645 5.02% 1,149,136 $ 14,052 4.85%
Allowance for loan losses (11,598) (10,618) (7,983)
Noninterest-earning assets 222,624 201,952 110,766
Total assets$ 2,075,601 $ 1,979,842 $ 1,251,919
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits$ 95,696 $ 43 0.18% $ 97,488 $ 40 0.16% $ 79,674 $ 30 0.15%
Money market and savings deposits 456,867 512 0.44% 432,654 468 0.43% 291,621 308 0.42%
Certificates and other time deposits 591,403 1,494 1.00% 547,884 1,324 0.96% 392,992 1,046 1.06%
Short-term borrowings 63,587 33 0.20% 106,533 47 0.17% - - 0.00%
Subordinated debt 9,072 139 6.06% 9,060 114 5.01% - - 0.00%
Other borrowed funds 5,053 16 1.24% 28,069 245 3.46% 10,008 78 3.10%
Total interest-bearing liabilities 1,221,678 $ 2,237 0.73% 1,221,688 $ 2,238 0.73% 774,295 $ 1,462 0.75%
Noninterest-Bearing liabilities:
Noninterest-bearing demand deposits 596,854 555,060 352,024
Other liabilities 8,144 7,292 4,894
Total liabilities 1,826,676 1,784,040 1,131,213
Stockholders' equity 248,925 195,802 120,706
Total liabilities and stockholders' equity$ 2,075,601 $ 1,979,842 $ 1,251,919
Net interest rate spread 4.27% 4.29% 4.10%
Net interest income and margin $ 21,255 4.52% $ 20,407 4.53% $ 12,590 4.35%
Net interest income and margin (tax equivalent) $ 21,623 4.60% $ 20,770 4.61% $ 12,651 4.37%


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
Year Ended
December 31, 2015 December 31, 2014
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$ 1,525,325 $ 85,443 5.60% $ 917,218 $ 50,243 5.48%
Securities 136,277 3,124 2.29% 91,318 1,851 2.03%
Deposits in other financial institutions 73,995 239 0.32% 81,839 311 0.38%
Total interest-earning assets 1,735,597 $ 88,806 5.12% 1,090,375 $ 52,405 4.81%
Allowance for loan losses (10,004) (7,276)
Noninterest-earning assets 211,419 109,852
Total assets$ 1,937,012 $ 1,192,951
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits$ 100,139 $ 163 0.16% $ 69,139 $ 134 0.19%
Money market and savings deposits 429,153 1,838 0.43% 263,277 1,127 0.43%
Certificates and other time deposits 559,247 5,272 0.94% 404,006 4,081 1.01%
Short-term borrowings 43,989 82 0.19% - - 0.00%
Subordinated debt 9,004 578 6.42% - - 0.00%
Other borrowed funds 22,354 707 3.16% 7,537 229 3.04%
Total interest-bearing liabilities 1,163,886 $ 8,640 0.74% 743,959 $ 5,571 0.75%
Noninterest-Bearing liabilities:
Noninterest-bearing demand deposits 554,704 328,743
Other liabilities 7,316 3,789
Total liabilities 1,725,906 1,076,491
Stockholders' equity 211,106 116,460
Total liabilities and stockholders' equity$ 1,937,012 $ 1,192,951
Net interest rate spread 4.38% 4.06%
Net interest income and margin $ 80,166 4.62% $ 46,834 4.30%
Net interest income and margin (tax equivalent) $ 81,156 4.68% $ 47,049 4.31%


Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
Three Months Ended
2015 2014
December 31 September 30 June 30 March 31 December 31
(Dollars in thousands)
Period-end Loan Portfolio:
Loans held for sale$ 27,887 $ 27,004 $ 25,629 $ 33,409 $ -
Commercial and industrial 383,044 367,341 346,703 325,598 242,034
Mortgage warehouse 59,071 65,928 81,255 36,912 28,329
Real Estate:
Commercial real estate (including multi-family residential) 745,595 710,857 678,979 640,391 429,986
Commercial real estate construction and land development 154,646 151,369 140,437 135,760 85,484
1-4 family residential (including home equity) 205,200 185,473 178,635 174,070 135,127
Residential construction 93,848 95,212 94,167 86,412 72,402
Consumer and other 11,761 13,232 15,852 12,180 8,692
Total loans$ 1,681,052 $ 1,616,416 $ 1,561,657 $ 1,444,732 $ 1,002,054
Asset Quality:
Nonaccrual loans$ 6,035 $ 6,185 $ 5,722 $ 6,852 $ 3,184
Accruing loans 90 or more
days past due - - - - -
Total nonperforming loans 6,035 6,185 5,722 6,852 3,184
Other real estate - - 21 - -
Other repossessed assets 131 131 491 - -
Total nonperforming assets$ 6,166 $ 6,316 $ 6,234 $ 6,852 $ 3,184
Net charge-offs (recoveries)$ 265 $ 638 $ 48 $ (11) $ (6)
Nonaccrual loans:
Loans held for sale$ 209 $ 498 $ 1,130 $ 782 $ -
Commercial and industrial 2,664 3,477 3,186 4,204 1,527
Warehouse lending - - - - -
Real Estate:
Commercial real estate (including multi-family residential) 2,857 1,783 974 1,293 1,653
Commercial real estate construction and land development - - - 246 -
1-4 family residential (including home equity) 239 341 343 296 -
Residential construction - - - - -
Consumer and other 66 86 89 31 4
Total nonaccrual loans$ 6,035 $ 6,185 $ 5,722 $ 6,852 $ 3,184
Asset Quality Ratios:
Nonperforming assets to total assets 0.30% 0.31% 0.32% 0.36% 0.25%
Nonperforming loans to total loans 0.36% 0.38% 0.37% 0.47% 0.32%
Allowance for loan losses to nonperforming loans 217.03% 181.15% 180.22% 130.47% 258.98%
Allowance for loan losses to total loans 0.78% 0.69% 0.66% 0.62% 0.82%
Provision for loan losses to average loans (annualized) 0.53% 0.39% 0.39% 0.20% 0.20%
Net charge-offs to average loans (annualized) 0.06% 0.16% 0.01% 0.00% 0.00%

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. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the tangible common equity to tangible assets ratio 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. Allegiance believes these non-GAAP financial measures provide information useful to management and investors that is supplementary to our financial condition and results of operations computed in accordance with GAAP. 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 Year Ended
2015 2014 2015 2014
December 31 September 30 June 30 March 31 December 31 December 31 December 31
(Dollars and share amounts in thousands)
Total Stockholders' equity $ 258,490 $ 196,043 $ 201,830 $ 199,024 $ 131,778 $ 258,490 $ 131,778
Less: Goodwill and core deposit intangibles, net 44,619 44,826 45,034 45,241 12,891 44,619 12,891
Tangible stockholders’ equity $ 213,871 $ 151,217 $ 156,796 $ 153,783 $ 118,887 $ 213,871 $ 118,887
Less: Preferred Stock - - 11,550 11,550 - - -
Tangible common stockholders’ equity $ 213,871 $ 151,217 $ 145,246 $ 142,233 $ 118,887 $ 213,871 $ 118,887
Shares outstanding at end of period 12,813 9,823 9,823 9,824 7,477 12,813 7,477
Tangible book value per common share $ 16.69 $ 15.39 $ 14.79 $ 14.48 $ 15.90 $ 16.69 $ 15.90
Net income attributable to common stockholders $ 4,212 $ 4,047 $ 3,623 $ 3,345 $ 2,300 $ 15,227 $ 9,005
Average common stockholders equity 248,925 194,045 189,907 186,294 120,706 204,935 116,460
Less: Average goodwill and core deposit intangibles, net 44,886 44,929 45,150 45,260 12,927 45,055 13,007
Average tangible common stockholders’ equity $ 204,039 $ 149,116 $ 144,757 $ 141,034 $ 107,779 $ 159,880 $ 103,453
Return on average tangible common equity 8.19% 10.77% 10.04% 9.62% 8.46% 9.52% 8.70%
Total assets $ 2,084,579 $ 2,012,350 $ 1,945,156 $ 1,884,886 $ 1,280,008 $ 2,084,579 $ 1,280,008
Less: Goodwill and core deposit intangibles, net 44,619 44,826 45,034 45,241 12,891 44,619 12,891
Tangible assets $ 2,039,960 $ 1,967,524 $ 1,900,122 $ 1,839,645 $ 1,267,117 $ 2,039,960 $ 1,267,117
Tangible common equity to tangible assets 10.48% 7.69% 7.64% 7.73% 9.38% 10.48% 9.38%


Allegiance Bancshares, Inc. ir@allegiancebank.com

Source:Allegiance Bancshares, Inc.