Allegiance Bancshares, Inc. operates as a bank holding company. It engages in the provision of commercial banking services primarily to Houston metropolitan area-based small to medium-sized businesses and individual customers. The company was founded by George Martinez and Steven F. Retzloff in 2007 and is headquartered in Houston, TX.
The COVID-19 pandemic has adversely impacted our business and financial results, and the ultimate impact will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic.
Net income was $3.5 million, or $0.17 per diluted share, for the first quarter 2020 compared to $12.7 million, or $0.58 per diluted share, for the first quarter 2019. The first quarter 2020 results were negatively impacted by the increased provision expense and write-downs in other real estate in response to COVID-19-related uncertainties in the current economic environment. Annualized returns on average assets, average shareholders’ equity and average tangible shareholders’ equity were 0.29%, 1.98% and 3.02%, respectively, compared to 1.08%, 7.27% and 11.22%, respectively, for the three months ended March 31, 2020 and 2019, respectively. Average return on tangible shareholders’ equity is a non-GAAP financial measure. See the GAAP to non-GAAP reconciliation table provided for a more detailed analysis. The efficiency ratio increased to 68.13% for the first quarter 2020 from 64.97% for the first quarter 2019 primarily due to write-downs in other real estate during the first quarter 2020. The efficiency ratio is calculated by dividing total noninterest expense 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 the efficiency ratio calculation.