 Record net interest income of 50.8 million, representing 12.9 growth from the first quarter of 2020 Funded over 5,800 loans totaling in excess of 695 million within the Small Business Administration Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act CARES Act through June 30, 2020 Net interest margin remained strong at 4.10 for the second quarter 2020 Declared quarterly dividend of 0.10 per share of common stock Opened de novo branch in the historic East End of Houston on July 27, 2020HOUSTON, July 30, 2020 GLOBE NEWSWIRE -- Allegiance Bancshares, Inc. NASDAQ: ABTX Allegiance, the holding company of Allegiance Bank the Bank, today reported net income of 9.9 million and diluted earnings per share of 0.48 for the second quarter 2020 compared to net income of 14.2 million and diluted earnings per share of 0.66 for the second quarter 2019. Net income for the six months ended June 30, 2020 was 13.4 million, or 0.65 per diluted share, compared to 26.9 million, or 1.24 per diluted share, for the six months ended June 30, 2019. The second quarter and six months ended June 30, 2020 results were primarily driven by the increased provision for loan losses in response to COVID-19-related uncertainties in the current economic environment partially offset by increased net interest income. We are pleased with our second quarter 2020 earnings performance, especially in light of the impact of the coronavirus on our economy, said Steve Retzloff, Allegiances Chief Executive Officer. Allegiance finished the quarter on a solid foundation of record pre-tax, pre-provision earnings, strong capital ratios, and a great liquidity position. We believe that we are well-positioned in light of todays economic uncertainties and remain a strong resource for those we serve, commented Retzloff.Our team of extraordinary bankers and small business lenders worked tirelessly around the clock to deploy the SBAs Paycheck Protection Program PPP to support our small business community. I am incredibly proud of the Banks ability to deliver on our commitment to help our customers - all while making many changes to how and where we all work. Allegiance reinforces the unique and valuable role a community bank offers to the businesses it serves as our bankers helped our customers and new borrowers secure funding for over 5,800 loans totaling over 695 million and will continue to do more until the PPP program expires. In turn, Allegiance collected a weighted average fee of 3.75 on the PPP loans to be recognized over the life of the loans. Allegiance was committed to supporting its customers from the start of the process and will continue to be committed throughout the entire forgiveness journey, continued Retzloff.As community bankers, we have a responsibility to support the health and welfare of our customers, communities and employees throughout this unprecedented time. Allegiance donated 150,000 and issued a 100,000 matching grant as well as committed volunteers to support the Houston Food Bank that will help provide one million meals across its Houston footprint. Small businesses are the mainstay of our business in the Houston region and we have been honored to serve their needs during this challenging economic environment. We continue to work diligently to build shareholder value by utilizing our strong capital position to support our customers and the communities we serve with outstanding customer service to keep Houston strong, concluded Retzloff.Second Quarter 2020 ResultsNet interest income before the provision for loan losses in the second quarter 2020 increased 5.3 million, or 11.6, to 50.8 million from 45.6 million for the second quarter 2019 and increased 5.8 million, or 12.9, from 45.0 million in the first 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 decreased 23 basis points to 4.10 for the second quarter 2020 from 4.33 for the second quarter 2019 and decreased 5 basis points from 4.15 for the first quarter 2020. Excluding the impact of acquisition accounting adjustments, adjusted net interest margin on a tax equivalent basis was 4.05 for the second quarter 2020 compared to 4.07 for the second quarter 2019 and 4.04 for the first quarter 2020. Adjusted net interest margin is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 11.Noninterest income for the second quarter 2020 was 1.6 million, a decrease of 2.3 million, or 59.4, compared to 3.8 million for the second quarter 2019 and a decrease of 1.2 million, or 42.7, compared to 2.7 million for the first quarter 2020. Noninterest income for the second quarter 2020, first quarter 2020 and second quarter 2019 included 93 thousand, 194 thousand and 846 thousand, respectively, of gains on the sale of securities. Second quarter 2020 noninterest income reflected lower transactional fee income, significantly lower correspondent bank rebates and included a loss on the sale of other real estate owned of 306 thousand.Noninterest expense for the second quarter 2020 decreased 301 thousand, or 1.0, to 29.8 million from 30.1 million for the second quarter 2019 and decreased 2.6 million, or 8.1, compared to the first quarter 2020. Noninterest expense for the first quarter 2020 included 2.2 million of other real estate write-downs.In the second quarter 2020, Allegiances efficiency ratio was 56.92 compared to 68.13 for the first quarter 2020 and 61.93 for the second quarter 2019. Second quarter 2020 annualized returns on average assets, average equity and average tangible equity were 0.71, 5.51 and 8.32, 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 second quarter 2019 were 1.19, 8.10 and 12.52, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 11. Six Months Ended June 30, 2020 ResultsNet interest income before provision for loan losses for the six months ended June 30, 2020 increased 5.7 million, or 6.3, to 95.9 million from 90.2 million for the six months ended June 30, 2019 primarily due to a 481.4 million, or 11.4, increase in average interest-earning assets over the prior year, the impact of PPP loans as well as lower costs related to interest-bearing liabilities. The net interest margin on a tax equivalent basis decreased 20 basis points to 4.12 for the six months ended June 30, 2020 from 4.32 for the six months ended June 30, 2019. Excluding the impact of acquisition accounting adjustments, the adjusted net interest margin for the six months ended June 30, 2020 was 4.04, compared to 4.05 for the six months ended June 30, 2019. Adjusted net interest margin is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 11.Noninterest income for the six months ended June 30, 2020 was 4.3 million, a decrease of 2.8 million, or 39.9, compared to 7.1 million for the six months ended June 30, 2019 due primarily to significantly lower correspondent bank rebates and losses on the sales of other real estate owned of 375 thousand. Additionally, noninterest income for the first six months of 2020 and 2019 included 287 thousand and 846 thousand, respectively, of gains on the sale of securities. Noninterest expense for the six months ended June 30, 2020 increased 985 thousand, or 1.6, to 62.2 million from 61.2 million for the six months ended June 30, 2019. The increase in noninterest expense over the six months ended June 30, 2019 was primarily due to 2.2 million of other real estate write-downs during the first quarter of 2020 partially offset by the decrease in merger-related expenses incurred during the first six months of 2019.Allegiances efficiency ratio decreased from 63.44 for the six months ended June 30, 2019 to 62.26 for the six months ended June 30, 2020. For the six months ended June 30, 2020, returns on average assets, average equity and average tangible equity were 0.51, 3.76 and 5.70, respectively, compared to 1.14, 7.69 and 11.87, respectively, for the six months ended June 30, 2019. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 11. Financial ConditionTotal assets at June 30, 2020 increased 834.5 million, or 66.7 annualized, to 5.84 billion compared to 5.00 billion at March 31, 2020 and increased 1.04 billion, or 21.7, compared to 4.79 billion at June 30, 2019, primarily due to the origination of PPP loans and growth in the securities portfolio.Total loans at June 30, 2020 increased 628.1 million, or 63.5 annualized, to 4.58 billion compared to 3.96 billion at March 31, 2020 and increased 725.7 million, or 18.8, compared to 3.86 billion at June 30, 2019, primarily due to the origination of 695.8 million of PPP loans and organic loan growth. Core loans, which exclude the mortgage warehouse portfolio and PPP loans, decreased 66.6 million, or 6.7 annualized, to 3.89 billion at June 30, 2020 from 3.95 billion at March 31, 2020 and increased 76.1 million, or 2.0, from 3.81 billion at June 30, 2019.Deposits at June 30, 2020 increased 747.1 million, or 75.6 annualized, to 4.70 billion compared to 3.95 billion at March 31, 2020 and increased 840.1 million, or 21.8, compared to 3.86 billion at June 30, 2019.Asset QualityNonperforming assets totaled 45.1 million, or 0.77 of total assets, at June 30, 2020, compared to 34.2 million, or 0. 