• Record core loan growth of $363.0 million, or 21.6%, year over year and $118.8 million, or 24.7% (annualized), for the second quarter 2017 compared to the linked quarter
  
  
• Net interest income increased 14.4% year over year and 4.1% for the second quarter 2017 compared to the linked quarter
  
  
• Efficiency ratio decreased to 61.92% for the second quarter 2017 from 64.98% for the first quarter 2017

HOUSTON, July 25, 2017 (GLOBE NEWSWIRE) -- Allegiance Bancshares, Inc. (NASDAQ:ABTX) ("Allegiance"), the holding company of Allegiance Bank (the "Bank"), today reported net income of $5.4 million in the second quarter 2017 compared to $5.3 million in the second quarter 2016 and diluted earnings per share for the second quarter 2017 and 2016 of $0.40.

"We are extremely proud to report another record quarter of high-quality organic loan production," commented George Martinez, Allegiance's Chairman and Chief Executive Officer.  "Our linked second quarter core loan growth of $118.8 million represents an annualized increase of 24.7% and reflects the hard work and dedication of our talented team of legacy lenders who, in collaboration with our recently added lenders, continue to build strong relationships in the vibrant Houston market. At the same time, our asset quality continues to be solid with net charge-offs of 0.13%, which reflects our disciplined underwriting," continued Martinez.

"In addition to enhancing our lending team, we have hired key personnel to strengthen our infrastructure and support the operational and regulatory requirements applicable to a larger bank as we pursue our ambitious growth goals. While net income declined in the second quarter 2017 compared to the linked quarter, primarily due to an increased provision for loan loss expense as a result of robust loan growth and prior nonperforming credit relationships, we are pleased to see gains in both efficiency and pre-tax pre-provision earnings in our second quarter 2017 performance,” concluded Martinez.

Second Quarter 2017 Results

Net interest income before provision for loan losses in the second quarter 2017 increased $3.2 million, or 14.4%, to $25.1 million from $21.9 million for the second quarter 2016 primarily due to organic loan growth and an increase in our securities portfolio.  Net interest income before provision for loan losses in the second quarter 2017 increased $979 thousand, or 4.1%, from $24.1 million in the first quarter 2017.  The net interest margin on a tax equivalent basis decreased 3 basis points to 4.29% for the second quarter 2017 from 4.32% for the second quarter 2016 and decreased 9 basis points from 4.38% for the first quarter 2017.

Noninterest income for the second quarter 2017 was $1.5 million, an increase of $265 thousand, or 21.9%, compared to $1.2 million for the second quarter 2016 and an increase of $136 thousand, or 10.1%, compared to $1.3 million for the first quarter 2017.

Noninterest expense for the second quarter 2017 increased $2.5 million, or 18.2%, to $16.5 million from $13.9 million for the second quarter 2016, and decreased $88 thousand, or 0.5%, from $16.5 million for the first quarter 2017. The increase in noninterest expense over the second quarter 2016 was primarily due to increased professional service fees to support growth initiatives.

In the second quarter 2017, Allegiance’s efficiency ratio decreased to 61.92% from 64.98% for the first quarter 2017 and increased from 60.11% for the second quarter 2016.

Second quarter 2017 annualized returns on average assets, average equity and average tangible equity were 0.81%, 7.32% and 8.57%, respectively, compared to 0.91%, 7.79% and 9.30%, respectively, for the second quarter 2016.  Annualized returns on average assets, average equity and average tangible equity for the first quarter 2017 were 0.96%, 8.61% and 10.15%, respectively.

Six Months Ended June 30, 2017 Results

Net interest income before provision for loan losses for the six months ended June 30, 2017 increased $6.2 million, or 14.4%, to $49.2 million from $43.0 million for the six months ended June 30, 2016 primarily due to organic loan growth and an increase in our securities portfolio.  The net interest margin on a tax equivalent basis decreased 5 basis points to 4.33% for the six months ended June 30, 2017 from 4.38% for the six months ended June 30, 2016.

Noninterest income for the six months ended June 30, 2017 was $2.8 million, a decrease of $1.7 million, or 37.6%, compared to $4.5 million for the six months ended June 30, 2016. The six months ended June 30, 2016 included a pre-tax gain of $2.1 million on the sale of two Central Texas branch locations that were sold in order to focus on the Houston MSA. Excluding the gain on the sale of these branches, noninterest income would have increased $352 thousand, or 14.3%, for the six months ended June 30, 2017 compared to the six months ended June 30, 2016.

Noninterest expense for the six months ended June 30, 2017 increased $4.8 million, or 17.2%, to $33.0 million from $28.2 million for the six months ended June 30, 2016.  The increase in noninterest expense over the six months ended June 30, 2016 was primarily due to increases in salaries and benefits as a result of the increased headcount and professional service fees related to supporting growth initiatives.

During the six months ended June 30, 2017, Allegiance’s efficiency ratio increased to 63.41% from 61.93% for the six months ended June 30, 2016.

For the six months ended June 30, 2017, annualized returns on average assets, average equity and average tangible equity were 0.89%, 7.95% and 9.34%, respectively, compared to 1.04%, 8.74% and 10.46%, respectively, for the six months ended June 30, 2016. Excluding the gain on the sale of the two Central Texas branch locations during the first quarter 2016, the annualized returns on average assets, average equity and average tangible equity for the six months ended June 30, 2016 would have been 0.92%, 7.73% and 9.26%, respectively.

Financial Condition

Total loans at June 30, 2017 increased $361.0 million, or 20.6%, to $2.11 billion compared to $1.75 billion at June 30, 2016 and increased $128.2 million, or 6.5%, compared to $1.99 billion at March 31, 2017. These increases were due to strong organic loan growth within the Bank’s loan portfolio. Core loans, which exclude the mortgage warehouse portfolio, increased $363.0 million, or 21.6%, to $2.04 billion at June 30, 2017 from $1.68 billion at June 30, 2016 and increased $118.8 million, or 6.2%, from $1.92 billion at March 31, 2017.

Deposits at June 30, 2017 increased $255.9 million, or 13.9%, to $2.10 billion compared to $1.84 billion at June 30, 2016 and increased $86.7 million, or 4.3%, compared to $2.01 billion at March 31, 2017.

Asset Quality

Nonperforming assets totaled $19.9 million, or 0.73% of total assets, at June 30, 2017, compared to $8.6 million, or 0.37% of total assets, at June 30, 2016, and $19.9 million, or 0.77% of total assets, at March 31, 2017. The allowance for loan losses was 0.99% of total loans at June 30, 2017, 0.85% of total loans at June 30, 2016 and 0.94% of total loans at March 31, 2017.

The provision for loan losses for the second quarter 2017 was $3.0 million, or 0.59% (annualized) of average loans, compared to $1.6 million, or 0.38% (annualized) of average loans, for the second quarter 2016, and $1.3 million, or 0.28% (annualized) of average loans, for the first quarter 2017. During the quarter, Allegiance bolstered its reserves with consistent application of its allowance methodology.  The provision for loan losses for the six months ended June 30, 2017 was $4.4 million, or 0.44% (annualized) of average loans, compared to $2.4 million, or 0.28% (annualized) of average loans for the six months ended June 30, 2016.

Second quarter 2017 net charge-offs were $684 thousand, or 0.13% (annualized) of average loans, compared to net charge-offs of $485 thousand, or 0.11% (annualized) of average loans, for the second quarter 2016, and $567 thousand, or 0.12% (annualized) of average loans, for the first quarter 2017. Net charge-offs for the six months ended June 30, 2017 were $1.3 million, or 0.13% (annualized) of average loans, compared to $656 thousand, or 0.08% (annualized) of average loans for the six months ended June 30, 2016.

GAAP Reconciliation of Non-GAAP Financial Measures

Allegiance’s management uses certain non-GAAP financial measures to evaluate its performance. Please refer to the GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures on page 10 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, July 25, 2017 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its second quarter 2017 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 51461392.  Alternatively, a simultaneous audio-only webcast may be accessed via the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Upcoming Events. If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under News and Events, Past Events.

Allegiance Bancshares, Inc.

Allegiance Bancshares, Inc. is a $2.72 billion asset 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’s unique super-community banking strategy was designed to foster strong customer relationships while benefiting from a platform and scale that is competitive with larger local and regional banks.  Allegiance Bank operates 16 full-service banking locations and one loan production office in the Houston metropolitan area. Visit www.allegiancebank.com for more information.

“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. 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; 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 risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 and in other reports and statements Allegiance has filed with the Securities and Exchange Commission. Copies of such filings are available for download free of charge from the Investor Relations section of Allegiance’s 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)
	2017								2016
	June 30				March 31				December 31				September 30				June 30
	(Dollars in thousands)
Cash and cash equivalents	$	187,491			$	184,146			$	142,098			$	225,082			$	210,863
Available for sale securities	321,268				317,219				316,455				310,033				303,463
Total loans	2,114,652				1,986,438				1,891,635				1,830,722				1,753,683
Allowance for loan losses	(21,010		)		(18,687		)		(17,911		)		(17,185		)		(14,917		)
Loans, net	2,093,642				1,967,751				1,873,724				1,813,537				1,738,766
Goodwill	39,389				39,389				39,389				39,389				39,389
Core deposit intangibles, net	3,664				3,860				4,055				4,250				4,446
Premises and equipment, net	18,240				18,138				18,340				17,811				17,821
Other real estate owned	365				365				1,503				1,138				1,397
Bank owned life insurance	22,131				21,985				21,837				21,684				21,530
Other assets	38,526				39,477				33,547				28,978				29,906
Total assets	$	2,724,716			$	2,592,330			$	2,450,948			$	2,461,902			$	2,367,581
Noninterest-bearing deposits	$	662,527			$	615,225			$	593,751			$	604,278			$	630,689
Interest-bearing deposits	1,436,715				1,397,344				1,276,432				1,296,601				1,212,650
Total deposits	2,099,242				2,012,569				1,870,183				1,900,879				1,843,339
Short-term borrowings	310,000				75,000				85,000				61,000				30,000
Other borrowed funds	569				200,569				200,569				200,569				200,569
Subordinated debentures	9,249				9,222				9,196				9,169				9,142
Other liabilities	7,197				5,840				6,183				9,190				8,280
Total liabilities	2,426,257				2,303,200				2,171,131				2,180,807				2,091,330
Common stock	13,153				13,080				12,958				12,905				12,869
Capital surplus	216,158				215,015				212,649				211,349				210,512
Retained earnings	68,704				63,309				57,262				51,491				46,020
Accumulated other comprehensive income (loss)	444				(2,274		)		(3,052		)		5,350				6,850
Shareholders' equity	298,459				289,130				279,817				281,095				276,251
Total liabilities and equity	$	2,724,716			$	2,592,330			$	2,450,948			$	2,461,902			$	2,367,581

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
	Three Months Ended																				Year-to-Date
	2017								2016												2017				2016
	June 30				March 31				December 31				September 30				June 30				June 30				June 30
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	26,736			$	25,260			$	24,232			$	24,057			$	22,839			$	51,996			$	45,067
Securities
Taxable	503				498				478				607				452				1,001				723
Tax-exempt	1,591				1,624				1,642				1,505				1,086				3,215				1,896
Deposits in other financial institutions	157				130				129				150				150				287				292
Total interest income	28,987				27,512				26,481				26,319				24,527				56,499				47,978
INTEREST EXPENSE:
Demand, money market and savings deposits	702				654				673				651				569				1,356				1,113
Certificates and other time deposits	2,283				1,957				1,947				1,872				1,665				4,240				3,225
Short-term borrowings	620				324				90				63				106				944				245
Subordinated debt	134				120				128				123				120				254				237
Other borrowed funds	141				329				221				201				118				470				125
Total interest expense	3,880				3,384				3,059				2,910				2,578				7,264				4,945
NET INTEREST INCOME	25,107				24,128				23,422				23,409				21,949				49,235				43,033
Provision for loan losses	3,007				1,343				900				2,214				1,645				4,350				2,355
Net interest income after provision for loan losses	22,100				22,785				22,522				21,195				20,304				44,885				40,678
NONINTEREST INCOME:
Nonsufficient funds fees	184				199				178				175				145				383				308
Service charges on deposit accounts	205				195				177				182				173				400				318
Gain on sale of branch assets	—				—				—				—				—				—				2,050
Gain on sale of securities	—				—				30				—				—				—				—
Gain on sale of other real estate	—				—				206				60				—				—				—
Bank owned life insurance	146				148				153				154				153				294				319
Other	942				799				734				703				741				1,741				1,521
Total noninterest income	1,477				1,341				1,478				1,274				1,212				2,818				4,516
NONINTEREST EXPENSE:
Salaries and employee benefits	10,415				10,562				10,627				9,781				9,177				20,977				18,450
Net occupancy and equipment	1,302				1,427				1,238				1,260				1,214				2,729				2,446
Depreciation	398				400				391				404				415				798				832
Data processing and software amortization	719				695				703				655				622				1,414				1,275
Professional fees	987				895				857				442				401				1,882				935
Regulatory assessments and FDIC insurance	569				589				485				396				355				1,158				700
Core deposit intangibles amortization	196				195				195				196				195				391				394
Communications	233				247				237				264				274				480				554
Advertising	288				263				319				228				197				551				398
Other	1,354				1,276				1,135				1,269				1,073				2,630				2,192
Total noninterest expense	16,461				16,549				16,187				14,895				13,923				33,010				28,176
INCOME BEFORE INCOME TAXES	7,116				7,577				7,813				7,574				7,593				14,693				17,018
Provision for income taxes	1,721				1,530				2,042				2,103				2,339				3,251				5,409
NET INCOME	$	5,395			$	6,047			$	5,771			$	5,471			$	5,254			$	11,442			$	11,609
EARNINGS PER SHARE
Basic	$	0.41			$	0.46			$	0.45			$	0.42			$	0.41			$	0.88			$	0.90
Diluted	$	0.40			$	0.45			$	0.44			$	0.42			$	0.40			$	0.85			$	0.89

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
		Three Months Ended																				Year-to-Date
		2017								2016												2017				2016
		June 30				March 31				December 31				September 30				June 30				June 30				June 30
		(Dollars and share amounts in thousands, except per share data)
Net income		$	5,395			$	6,047			$	5,771			$	5,471			$	5,254			$	11,442			$	11,609
Earnings per share, basic		$	0.41			$	0.46			$	0.45			$	0.42			$	0.41			$	0.88			$	0.90
Earnings per share, diluted		$	0.40			$	0.45			$	0.44			$	0.42			$	0.40			$	0.85			$	0.89
Return on average assets(A)		0.81		%		0.96		%		0.93		%		0.90		%		0.91		%		0.89		%		1.04		%
Return on average equity(A)		7.32		%		8.61		%		8.25		%		7.77		%		7.79		%		7.95		%		8.74		%
Return on average tangible equity(A)(B)		8.57		%		10.15		%		9.79		%		9.21		%		9.30		%		9.34		%		10.46		%
Tax equivalent net interest margin(C)		4.29		%		4.38		%		4.32		%		4.39		%		4.32		%		4.33		%		4.38		%
Efficiency ratio(D)		61.92		%		64.98		%		65.09		%		60.34		%		60.11		%		63.41		%		61.93		%
Liquidity and Capital Ratios
Equity to assets		10.95		%		11.15		%		11.42		%		11.42		%		11.67		%		10.95		%		11.67		%
Common equity Tier 1 capital		10.84		%		11.10		%		11.44		%		11.40		%		11.69		%		10.84		%		11.69		%
Tier 1 risk-based capital		11.24		%		11.51		%		11.87		%		11.84		%		12.16		%		11.24		%		12.16		%
Total risk-based capital		12.13		%		12.35		%		12.72		%		12.68		%		12.92		%		12.13		%		12.92		%
Tier 1 leverage capital		10.11		%		10.28		%		10.35		%		10.25		%		10.43		%		10.11		%		10.43		%
Tangible equity to tangible assets(B)		9.52		%		9.65		%		9.82		%		9.82		%		10.00		%		9.52		%		10.00		%
Other Data
Weighted average shares:
Basic		13,125				13,021				12,913				12,882				12,857				13,073				12,849
Diluted		13,471				13,377				13,180				13,108				13,039				13,425				13,003
Period end shares outstanding		13,153				13,080				12,958				12,905				12,869				13,153				12,869
Book value per share		$	22.69			$	22.10			$	21.59			$	21.78			$	21.47			$	22.69			$	21.47
Tangible book value per share(B)		$	19.42			$	18.80			$	18.24			$	18.40			$	18.06			$	19.42			$	18.06
(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 on page 10 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 branch assets, loans and securities.  Additionally, taxes and provision for loan losses are not part of this calculation.

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
	Three Months Ended
	June 30, 2017											March 31, 2017											June 30, 2016
	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	$	2,042,460			$	26,736			5.25	%		$	1,928,333			$	25,260			5.31	%		$	1,724,346			$	22,839			5.33	%
Securities	326,388				2,094				2.57	%		325,911				2,122				2.64	%		270,619				1,538				2.29	%
Deposits in other financial institutions	49,703				157				1.26	%		53,338				130				0.99	%		96,358				150				0.62	%
Total interest-earning assets	2,418,551				$	28,987			4.81	%		2,307,582				$	27,512			4.84	%		2,091,323				$	24,527			4.72	%
Allowance for loan losses	(19,253		)									(18,200		)									(14,129		)
Noninterest-earning assets	261,668											259,315											236,857
Total assets	$	2,660,966										$	2,548,697										$	2,314,051
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	137,507			$	118			0.34	%		$	130,909			$	100			0.31	%		$	102,550			$	88			0.34	%
Money market and savings deposits	499,335				584				0.47	%		486,779				554				0.46	%		435,851				481				0.44	%
Certificates and other time deposits	785,194				2,283				1.17	%		685,169				1,957				1.16	%		627,982				1,665				1.07	%
Short-term borrowings	237,681				620				1.05	%		145,278				324				0.91	%		88,242				106				0.48	%
Subordinated debt	9,232				134				5.83	%		9,205				120				5.28	%		9,125				120				5.28	%
Other borrowed funds	66,503				141				0.85	%		200,570				329				0.66	%		118,629				118				0.40	%
Total interest-bearing liabilities	1,735,452				$	3,880			0.90	%		1,657,910				$	3,384			0.83	%		1,382,379				$	2,578			0.75	%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	624,100											600,006											652,405
Other liabilities	5,889											5,892											8,139
Total liabilities	2,365,442											2,263,808											2,042,923
Shareholders' equity	295,524											284,889											271,128
Total liabilities and shareholders' equity	$	2,660,966										$	2,548,697										$	2,314,051
Net interest rate spread									3.91	%										4.01	%										3.97	%
Net interest income and margin					$	25,107			4.16	%						$	24,128			4.24	%						$	21,949			4.22	%
Net interest income and margin (tax equivalent)					$	25,862			4.29	%						$	24,907			4.38	%						$	22,481			4.32	%

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
	Year-to-Date
	June 30, 2017											June 30, 2016
	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	$	1,985,712			$	51,996			5.28	%		$	1,694,029			$	45,067			5.35	%
Securities	326,151				4,216				2.61	%		228,540				2,619				2.30	%
Deposits in other financial institutions	51,511				287				1.12	%		94,091				292				0.62	%
Total interest-earning assets	2,363,374				$	56,499			4.82	%		2,016,660				$	47,978			4.78	%
Allowance for loan losses	(18,729		)									(13,808		)
Noninterest-earning assets	260,497											231,901
Total assets	$	2,605,142										$	2,234,753
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	134,226			$	218			0.33	%		$	99,028			$	155			0.31	%
Money market and savings deposits	493,092				1,138				0.47	%		434,495				958				0.44	%
Certificates and other time deposits	735,458				4,240				1.16	%		621,099				3,225				1.04	%
Short-term borrowings	191,735				944				0.99	%		107,308				245				0.46	%
Subordinated debt	9,218				254				5.56	%		9,111				237				5.23	%
Other borrowed funds	133,166				470				0.71	%		59,599				125				0.42	%
Total interest-bearing liabilities	1,696,895				$	7,264			0.86	%		1,330,640				$	4,945			0.75	%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	612,120											629,187
Other liabilities	5,891											7,663
Total liabilities	2,314,906											1,967,490
Shareholders' equity	290,236											267,263
Total liabilities and shareholders' equity	$	2,605,142										$	2,234,753
Net interest rate spread									3.96	%										4.03	%
Net interest income and margin					$	49,235			4.20	%						$	43,033			4.29	%
Net interest income and margin (tax equivalent)					$	50,770			4.33	%						$	43,964			4.38	%

Allegiance Bancshares, Inc.
Financial Highlights
(Unaudited)
	As of and For the Three Months Ended
	2017								2016
	June 30				March 31				December 31				September 30				June 30
	(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial	$	444,701			$	425,154			$	416,752			$	402,273			$	382,795
Mortgage warehouse	73,499				64,132				67,038				76,043				75,554
Real estate:
Commercial real estate (including multi-family residential)	1,008,027				961,212				891,989				848,939				806,771
Commercial real estate construction and land development	206,024				175,264				159,247				167,936				161,572
1-4 family residential (including home equity)	267,939				250,881				246,987				228,651				214,442
Residential construction	102,832				99,648				98,657				93,923				101,677
Consumer and other	11,630				10,147				10,965				12,957				10,872
Total loans	$	2,114,652			$	1,986,438			$	1,891,635			$	1,830,722			$	1,753,683
Asset Quality:
Nonaccrual loans	$	19,330			$	19,315			$	15,788			$	15,882			$	7,124
Accruing loans 90 or more days past due	—				—				911				—				—
Total nonperforming loans	19,330				19,315				16,699				15,882				7,124
Other real estate	365				365				1,503				1,138				1,397
Other repossessed assets	205				260				286				30				128
Total nonperforming assets	$	19,900			$	19,940			$	18,488			$	17,050			$	8,649
Net charge-offs (recoveries)	$	684			$	567			$	174			$	(54	)		$	485
Nonaccrual loans:
Commercial and industrial	$	9,051			$	8,933			$	3,896			$	4,983			$	2,723
Mortgage warehouse	—				—				—				—				—
Real estate:
Commercial real estate (including multi-family residential)	9,556				9,726				11,663				10,495				4,141
Commercial real estate construction and land development	—				70				—				—				—
1-4 family residential (including home equity)	568				574				217				11				227
Residential construction	—				—				—				—				—
Consumer and other	155				12				12				393				33
Total nonaccrual loans	$	19,330			$	19,315			$	15,788			$	15,882			$	7,124
Asset Quality Ratios:
Nonperforming assets to total assets	0.73		%		0.77		%		0.75		%		0.69		%		0.37		%
Nonperforming loans to total loans	0.91		%		0.97		%		0.88		%		0.87		%		0.41		%
Allowance for loan losses to nonperforming loans	108.69		%		96.75		%		107.26		%		108.20		%		209.39		%
Allowance for loan losses to total loans	0.99		%		0.94		%		0.95		%		0.94		%		0.85		%
Net charge-offs (recoveries) to average loans (annualized)	0.13		%		0.12		%		0.04		%		(0.01		)%		0.11		%

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. Allegiance believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance.  Allegiance believes that management and investors benefit from referring to these non-GAAP financial measures in assessing Allegiance’s performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, Allegiance reviews tangible book value per common share, return on average tangible common equity and the ratio of tangible common equity to tangible assets for internal planning and forecasting purposes. Additionally, Allegiance excluded the one time sale of two Central Texas branch locations during the first quarter 2016 as noted within the narrative, as Allegiance believes this transaction was not indicative of its recurring operating results. Allegiance has included in this Earnings Release information relating to these non-GAAP financial measures for the applicable periods presented.  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-to-Date
		2017								2016												2017				2016
		June 30				March 31				December 31				September 30				June 30				June 30				June 30
		(Dollars and share amounts in thousands, except per share data)
Total shareholders' equity		$	298,459			$	289,130			$	279,817			$	281,095			$	276,251			$	298,459			$	276,251
Less:  Goodwill and core deposit intangibles, net		43,054				43,249				43,444				43,639				43,835				43,054				43,835
Tangible shareholders’ equity		$	255,405			$	245,881			$	236,373			$	237,456			$	232,416			$	255,405			$	232,416
Shares outstanding at end of period		13,153				13,080				12,958				12,905				12,869				13,153				12,869
Tangible book value per share		$	19.42			$	18.80			$	18.24			$	18.40			$	18.06			$	19.42			$	18.06
Net income attributable to shareholders		$	5,395			$	6,047			$	5,771			$	5,471			$	5,254			$	11,442			$	11,609
Average shareholders' equity		$	295,524			$	284,889			$	278,123			$	280,065			$	271,128			$	290,236			$	267,263
Less:  Average goodwill and core deposit intangibles, net		43,149				43,345				43,539				43,735				43,930				43,246				44,124
Average tangible shareholders’ equity		$	252,375			$	241,544			$	234,584			$	236,330			$	227,198			$	246,990			$	223,139
Return on average tangible equity		8.57		%		10.15		%		9.79		%		9.21		%		9.30		%		9.34		%		10.46		%
Total assets		$	2,724,716			$	2,592,330			$	2,450,948			$	2,461,902			$	2,367,581			$	2,724,716			$	2,367,581
Less: Goodwill and core deposit intangibles, net		43,054				43,249				43,444				43,639				43,835				43,054				43,835
Tangible assets		$	2,681,662			$	2,549,081			$	2,407,504			$	2,418,263			$	2,323,746			$	2,681,662			$	2,323,746
Tangible equity to tangible assets		9.52		%		9.65		%		9.82		%		9.82		%		10.00		%		9.52		%		10.00		%

Allegiance Bancshares, Inc.
8847 West Sam Houston Parkway N., Suite 200
Houston, Texas 77040
ir@allegiancebank.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.