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 January 26, 2016 - 7:00 AM EST
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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 

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Source: GlobeNewswire (January 26, 2016 - 7:00 AM EST)

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