Allegiance Bancshares has filed an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The 2.6 million shares are expected to price within the range of $22 to $24, with an overallotment option for an additional 390,000 shares. At the maximum expected price the entire offering would be valued up to $71.76 million.
The underwriters for the offering are Baird, Stephens, Keefe Bruyette & Woods, and Sandler O’Neill partners.
This is a Texas corporation and a registered bank holding company headquartered in Houston. Through its wholly owned subsidiary, Allegiance Bank, it provides a diversified range of commercial banking services, primarily to Houston metropolitan area-based small to medium-sized businesses and individual customers.
The company currently operates 16 full-service banking locations in the Houston metropolitan area and two full-service banking locations in Central Texas. Allegiance has experienced significant growth since it began banking operations in 2007, through both organic growth, including de novo branching, and two whole-bank acquisitions.
Most recently, on January 1, 2015, the company completed its acquisition of Farmers & Merchants Bancshares and its subsidiary bank, Enterprise Bank. At the end of June 2015, Allegiance had total assets of $1.95 billion, total loans of $1.56 billion, total deposits of $1.63 billion and total stockholders’ equity of $201.8 million.
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In terms of its finances, Allegiance gave a third-quarter update as follows:
We expect to report net income in the range of $4.0 million to $4.3 million and net income attributable to common stockholders in the range of $3.8 million to $4.1 million for the three months ended September 30, 2015 as compared to net income of $3.9 million and net income attributable to common stockholders of $3.6 million for the three months ended June 30, 2015. The expected increase in net income is primarily attributable to growth in outstanding loan balances, a corresponding increase in net interest income and efficiencies achieved through our continued integration of F&M Bancshares. For the period from June 30, 2015 to September 15, 2015, average loans increased $92.7 million to $1.57 billion from $1.48 billion for the three months ended June 30, 2015.
We expect to report diluted earnings per share in the range of $0.40 to $0.43 for the three months ended September 30, 2015. We expect to report tangible book value per common share in the range of $15.34 to $15.37 as of September 30, 2015.
The company plans to use the net proceeds from this offering to repay its indebtedness and for working capital and general corporate purposes.
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