☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Texas
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26-3564100
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(State or other jurisdiction
of incorporation or organization)
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(I.R.S. Employer
Identification No.)
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Large accelerated filer
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☐
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Accelerated filer
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☒
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Non-accelerated filer
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☐ (Do not check if a smaller reporting company)
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Smaller reporting company
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☐
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Emerging growth company
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☒
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March 31,
2017 |
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December 31,
2016 |
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(Unaudited)
|
|
|
||||
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(Dollars in thousands, except share data)
|
||||||
ASSETS
|
|
|
|
||||
Cash and due from banks
|
$
|
136,413
|
|
|
$
|
94,073
|
|
Interest-bearing deposits at other financial institutions
|
47,733
|
|
|
48,025
|
|
||
Total cash and cash equivalents
|
184,146
|
|
|
142,098
|
|
||
Available for sale securities, at fair value
|
317,219
|
|
|
316,455
|
|
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|
|
|
|
||||
Loans held for investment
|
1,986,438
|
|
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1,891,635
|
|
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Less: allowance for loan losses
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(18,687
|
)
|
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(17,911
|
)
|
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Loans, net
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1,967,751
|
|
|
1,873,724
|
|
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|
|
|
|
||||
Accrued interest receivable
|
7,444
|
|
|
9,007
|
|
||
Premises and equipment, net
|
18,138
|
|
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18,340
|
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Other real estate owned
|
365
|
|
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1,503
|
|
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Federal Home Loan Bank stock
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19,863
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|
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13,175
|
|
||
Bank owned life insurance
|
21,985
|
|
|
21,837
|
|
||
Goodwill
|
39,389
|
|
|
39,389
|
|
||
Core deposit intangibles, net
|
3,860
|
|
|
4,055
|
|
||
Other assets
|
12,170
|
|
|
11,365
|
|
||
TOTAL ASSETS
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$
|
2,592,330
|
|
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$
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2,450,948
|
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LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
LIABILITIES:
|
|
|
|
||||
Deposits:
|
|
|
|
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Noninterest-bearing
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$
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615,225
|
|
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$
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593,751
|
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Interest-bearing
|
|
|
|
||||
Demand
|
139,648
|
|
|
114,772
|
|
||
Money market and savings
|
492,246
|
|
|
483,266
|
|
||
Certificates and other time
|
765,450
|
|
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678,394
|
|
||
Total interest-bearing deposits
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1,397,344
|
|
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1,276,432
|
|
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Total deposits
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2,012,569
|
|
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1,870,183
|
|
||
Accrued interest payable
|
245
|
|
|
285
|
|
||
Short-term borrowings
|
75,000
|
|
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85,000
|
|
||
Other borrowed funds
|
200,569
|
|
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200,569
|
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Subordinated debentures
|
9,222
|
|
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9,196
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Other liabilities
|
5,595
|
|
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5,898
|
|
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Total liabilities
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2,303,200
|
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2,171,131
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COMMITMENTS AND CONTINGENCIES (See Note 12)
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|
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SHAREHOLDERS’ EQUITY:
|
|
|
|
||||
Preferred stock, $1 par value; 1,000,000 shares authorized; there were no shares issued and outstanding of Series A or Series B, each has a $1,000 liquidation value
|
—
|
|
|
—
|
|
||
Common stock, $1 par value; 40,000,000 shares authorized; 13,080,442 shares issued and outstanding at March 31, 2017 and 12,958,341 shares issued and outstanding at December 31, 2016
|
13,080
|
|
|
12,958
|
|
||
Capital surplus
|
215,015
|
|
|
212,649
|
|
||
Retained earnings
|
63,309
|
|
|
57,262
|
|
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Accumulated other comprehensive loss
|
(2,274
|
)
|
|
(3,052
|
)
|
||
Total shareholders’ equity
|
289,130
|
|
|
279,817
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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$
|
2,592,330
|
|
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$
|
2,450,948
|
|
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Three Months Ended March 31,
|
||||||
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2017
|
|
2016
|
||||
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(Dollars in thousands, except per share data)
|
||||||
INTEREST INCOME:
|
|
|
|
||||
Loans, including fees
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$
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25,260
|
|
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$
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22,228
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Securities:
|
|
|
|
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Taxable
|
498
|
|
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270
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Tax-exempt
|
1,624
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811
|
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Deposits in other financial institutions
|
130
|
|
|
142
|
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Total interest income
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27,512
|
|
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23,451
|
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INTEREST EXPENSE:
|
|
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|
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Demand, money market and savings deposits
|
654
|
|
|
544
|
|
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Certificates and other time deposits
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1,957
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|
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1,560
|
|
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Short-term borrowings
|
324
|
|
|
139
|
|
||
Subordinated debentures
|
120
|
|
|
117
|
|
||
Other borrowed funds
|
329
|
|
|
7
|
|
||
Total interest expense
|
3,384
|
|
|
2,367
|
|
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NET INTEREST INCOME
|
24,128
|
|
|
21,084
|
|
||
Provision for loan losses
|
1,343
|
|
|
710
|
|
||
Net interest income after provision for loan losses
|
22,785
|
|
|
20,374
|
|
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NONINTEREST INCOME:
|
|
|
|
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Nonsufficient funds fees
|
199
|
|
|
163
|
|
||
Service charges on deposit accounts
|
195
|
|
|
145
|
|
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Gain on sale of branch assets
|
—
|
|
|
2,050
|
|
||
Bank owned life insurance income
|
148
|
|
|
166
|
|
||
Other
|
799
|
|
|
780
|
|
||
Total noninterest income
|
1,341
|
|
|
3,304
|
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NONINTEREST EXPENSE:
|
|
|
|
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Salaries and employee benefits
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10,562
|
|
|
9,273
|
|
||
Net occupancy and equipment
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1,427
|
|
|
1,232
|
|
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Depreciation
|
400
|
|
|
417
|
|
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Data processing and software amortization
|
695
|
|
|
653
|
|
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Professional fees
|
895
|
|
|
534
|
|
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Regulatory assessments and FDIC insurance
|
589
|
|
|
345
|
|
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Core deposit intangibles amortization
|
195
|
|
|
199
|
|
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Communications
|
247
|
|
|
280
|
|
||
Advertising
|
263
|
|
|
201
|
|
||
Other
|
1,276
|
|
|
1,119
|
|
||
Total noninterest expense
|
16,549
|
|
|
14,253
|
|
||
INCOME BEFORE INCOME TAXES
|
7,577
|
|
|
9,425
|
|
||
Provision for income taxes
|
1,530
|
|
|
3,070
|
|
||
NET INCOME
|
$
|
6,047
|
|
|
$
|
6,355
|
|
|
|
|
|
||||
EARNINGS PER SHARE:
|
|
|
|
||||
Basic
|
$
|
0.46
|
|
|
$
|
0.49
|
|
Diluted
|
$
|
0.45
|
|
|
$
|
0.49
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in thousands)
|
||||||
Net income
|
$
|
6,047
|
|
|
$
|
6,355
|
|
Other comprehensive income, before tax:
|
|
|
|
||||
Unrealized gain on securities:
|
|
|
|
||||
Change in unrealized holding gain on available for sale securities during the period
|
1,197
|
|
|
1,203
|
|
||
Total other comprehensive income
|
1,197
|
|
|
1,203
|
|
||
Deferred tax expense related to other comprehensive income
|
(419
|
)
|
|
(421
|
)
|
||
Other comprehensive income, net of tax
|
778
|
|
|
782
|
|
||
Comprehensive income
|
$
|
6,825
|
|
|
$
|
7,137
|
|
|
|
Common Stock
|
|
Capital
|
|
Retained
|
|
Accumulated
Other
Comprehensive
|
|
Treasury
|
|
Total
Shareholders’
|
|||||||||||||||
|
|
Shares
|
|
Amount
|
|
Surplus
|
|
Earnings
|
|
Income (Loss)
|
|
Stock
|
|
Equity
|
|||||||||||||
|
|
(In thousands, except share data)
|
|||||||||||||||||||||||||
BALANCE AT JANUARY 1, 2016
|
|
12,814,696
|
|
|
$
|
12,815
|
|
|
$
|
209,285
|
|
|
$
|
34,411
|
|
|
$
|
2,017
|
|
|
$
|
(38
|
)
|
|
$
|
258,490
|
|
Net income
|
|
|
|
|
|
|
|
6,355
|
|
|
|
|
|
|
6,355
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
782
|
|
|
|
|
782
|
|
|||||||||||
Common stock issued in connection with the exercise of stock options and restricted stock awards
|
|
30,056
|
|
|
30
|
|
|
244
|
|
|
|
|
|
|
|
|
274
|
|
|||||||||
Repurchase of treasury stock
|
|
|
|
|
|
|
|
|
|
|
|
38
|
|
|
38
|
|
|||||||||||
Stock based compensation expense
|
|
|
|
|
|
354
|
|
|
|
|
|
|
|
|
354
|
|
|||||||||||
BALANCE AT MARCH 31, 2016
|
|
12,844,752
|
|
|
$
|
12,845
|
|
|
$
|
209,883
|
|
|
$
|
40,766
|
|
|
$
|
2,799
|
|
|
$
|
—
|
|
|
$
|
266,293
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
BALANCE AT JANUARY 1, 2017
|
|
12,958,341
|
|
|
$
|
12,958
|
|
|
$
|
212,649
|
|
|
$
|
57,262
|
|
|
$
|
(3,052
|
)
|
|
$
|
—
|
|
|
$
|
279,817
|
|
Net income
|
|
|
|
|
|
|
|
6,047
|
|
|
|
|
|
|
6,047
|
|
|||||||||||
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
778
|
|
|
|
|
778
|
|
|||||||||||
Common stock issued in connection with the exercise of stock options and restricted stock awards
|
|
122,101
|
|
|
122
|
|
|
2,025
|
|
|
|
|
|
|
|
|
2,147
|
|
|||||||||
Stock based compensation expense
|
|
|
|
|
|
341
|
|
|
|
|
|
|
|
|
341
|
|
|||||||||||
BALANCE AT MARCH 31, 2017
|
|
13,080,442
|
|
|
$
|
13,080
|
|
|
$
|
215,015
|
|
|
$
|
63,309
|
|
|
$
|
(2,274
|
)
|
|
$
|
—
|
|
|
$
|
289,130
|
|
|
Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
6,047
|
|
|
$
|
6,355
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and core deposit intangibles amortization
|
595
|
|
|
616
|
|
||
Provision for loan losses
|
1,343
|
|
|
710
|
|
||
Excess tax benefit related to the exercise of stock options
|
(631
|
)
|
|
—
|
|
||
Net amortization of premium on investments
|
826
|
|
|
534
|
|
||
Bank owned life insurance
|
(148
|
)
|
|
(166
|
)
|
||
Net accretion of discount on loans
|
(236
|
)
|
|
(553
|
)
|
||
Net amortization of discount on subordinated debentures
|
26
|
|
|
26
|
|
||
Net amortization of discount on certificates of deposit
|
(253
|
)
|
|
(733
|
)
|
||
Net gain on sale of branch assets
|
—
|
|
|
(2,050
|
)
|
||
Federal Home Loan Bank stock dividends
|
(46
|
)
|
|
(14
|
)
|
||
Stock based compensation expense
|
341
|
|
|
354
|
|
||
Decrease in accrued interest receivable and other assets
|
698
|
|
|
288
|
|
||
(Decrease) increase in accrued interest payable and other liabilities
|
545
|
|
|
43
|
|
||
Net cash provided by operating activities
|
9,107
|
|
|
5,410
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Proceeds from maturities and principal paydowns of available for sale securities
|
902,938
|
|
|
1,024,262
|
|
||
Purchase of available for sale securities
|
(903,331
|
)
|
|
(1,073,897
|
)
|
||
Net change in total loans
|
(93,996
|
)
|
|
(55,382
|
)
|
||
Purchase of bank premises and equipment
|
(557
|
)
|
|
(81
|
)
|
||
Net purchases of Federal Home Loan Bank stock
|
(6,642
|
)
|
|
(6,154
|
)
|
||
Net cash paid for the sale of branch assets
|
—
|
|
|
(5,250
|
)
|
||
Net cash used in investing activities
|
(101,588
|
)
|
|
(116,502
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Net increase in noninterest-bearing deposits
|
21,474
|
|
|
70,453
|
|
||
Net increase in interest-bearing deposits
|
120,908
|
|
|
40,186
|
|
||
Paydowns of short-term borrowings
|
(10,000
|
)
|
|
—
|
|
||
Proceeds from short-term borrowings
|
—
|
|
|
35,000
|
|
||
Proceeds from the issuance of common stock, stock option exercises, restricted stock awards and the ESPP
|
2,147
|
|
|
274
|
|
||
Issuance of treasury stock
|
—
|
|
|
38
|
|
||
Net cash provided by financing activities
|
134,529
|
|
|
145,951
|
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS
|
42,048
|
|
|
34,859
|
|
||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
142,098
|
|
|
148,431
|
|
||
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
$
|
184,146
|
|
|
$
|
183,290
|
|
SUPPLEMENTAL INFORMATION:
|
|
|
|
||||
Income taxes paid
|
$
|
—
|
|
|
$
|
1,900
|
|
Interest paid
|
3,421
|
|
|
2,228
|
|
|
Goodwill
|
|
Core Deposit
Intangibles
|
||||
|
(Dollars in thousands)
|
||||||
Balance as of January 1, 2016
|
$
|
39,389
|
|
|
$
|
5,230
|
|
Sale of branch assets
|
—
|
|
|
(390
|
)
|
||
Amortization
|
—
|
|
|
(785
|
)
|
||
Balance as of December 31, 2016
|
39,389
|
|
|
4,055
|
|
||
Amortization
|
—
|
|
|
(195
|
)
|
||
Balance as of March 31, 2017
|
$
|
39,389
|
|
|
$
|
3,860
|
|
Remaining 2017
|
$
|
586
|
|
2018
|
781
|
|
|
2019
|
781
|
|
|
2020
|
744
|
|
|
2021
|
484
|
|
|
Thereafter
|
484
|
|
|
Total
|
$
|
3,860
|
|
|
March 31, 2017
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
$
|
5,895
|
|
|
$
|
268
|
|
|
$
|
—
|
|
|
$
|
6,163
|
|
Municipal securities
|
240,248
|
|
|
1,133
|
|
|
(4,830
|
)
|
|
236,551
|
|
||||
Agency mortgage-backed pass-through securities
|
28,470
|
|
|
243
|
|
|
(388
|
)
|
|
28,325
|
|
||||
Corporate bonds and other
|
46,105
|
|
|
167
|
|
|
(92
|
)
|
|
46,180
|
|
||||
Total
|
$
|
320,718
|
|
|
$
|
1,811
|
|
|
$
|
(5,310
|
)
|
|
$
|
317,219
|
|
|
December 31, 2016
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
$
|
5,883
|
|
|
$
|
266
|
|
|
$
|
—
|
|
|
$
|
6,149
|
|
Municipal securities
|
242,501
|
|
|
956
|
|
|
(5,655
|
)
|
|
237,802
|
|
||||
Agency mortgage-backed pass-through securities
|
27,496
|
|
|
265
|
|
|
(437
|
)
|
|
27,324
|
|
||||
Corporate bonds and other
|
45,271
|
|
|
77
|
|
|
(168
|
)
|
|
45,180
|
|
||||
Total
|
$
|
321,151
|
|
|
$
|
1,564
|
|
|
$
|
(6,260
|
)
|
|
$
|
316,455
|
|
|
Amortized
Cost
|
|
Fair
Value
|
||||
|
(Dollars in thousands)
|
||||||
Due in one year or less
|
$
|
1,400
|
|
|
$
|
1,404
|
|
Due after one year through five years
|
81,851
|
|
|
81,891
|
|
||
Due after five years through ten years
|
89,320
|
|
|
88,330
|
|
||
Due after ten years
|
119,677
|
|
|
117,269
|
|
||
Subtotal
|
292,248
|
|
|
288,894
|
|
||
Agency mortgage-backed pass through securities
|
28,470
|
|
|
28,325
|
|
||
Total
|
$
|
320,718
|
|
|
$
|
317,219
|
|
|
March 31, 2017
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
More than 12 Months
|
|
Total
|
||||||||||||||||||
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government and agency securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Municipal securities
|
160,640
|
|
|
(4,830
|
)
|
|
—
|
|
|
—
|
|
|
160,640
|
|
|
(4,830
|
)
|
||||||
Agency mortgage-backed pass-through securities
|
14,316
|
|
|
(304
|
)
|
|
2,757
|
|
|
(84
|
)
|
|
17,073
|
|
|
(388
|
)
|
||||||
Corporate bonds and other
|
22,095
|
|
|
(92
|
)
|
|
—
|
|
|
—
|
|
|
22,095
|
|
|
(92
|
)
|
||||||
Total
|
$
|
197,051
|
|
|
$
|
(5,226
|
)
|
|
$
|
2,757
|
|
|
$
|
(84
|
)
|
|
$
|
199,808
|
|
|
$
|
(5,310
|
)
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Less than 12 Months
|
|
More than 12 Months
|
|
Total
|
||||||||||||||||||
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
|
Estimated
Fair Value
|
|
Unrealized
Losses
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S. Government and agency securities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Municipal securities
|
178,876
|
|
|
(5,655
|
)
|
|
—
|
|
|
—
|
|
|
178,876
|
|
|
(5,655
|
)
|
||||||
Agency mortgage-backed pass-through securities
|
12,520
|
|
|
(347
|
)
|
|
2,803
|
|
|
(90
|
)
|
|
15,323
|
|
|
(437
|
)
|
||||||
Corporate bonds and other
|
24,629
|
|
|
(168
|
)
|
|
—
|
|
|
—
|
|
|
24,629
|
|
|
(168
|
)
|
||||||
Total
|
$
|
216,025
|
|
|
$
|
(6,170
|
)
|
|
$
|
2,803
|
|
|
$
|
(90
|
)
|
|
$
|
218,828
|
|
|
$
|
(6,260
|
)
|
|
March 31,
2017 |
|
December 31,
2016 |
||||
|
(Dollars in thousands)
|
||||||
Commercial and industrial
|
$
|
425,154
|
|
|
$
|
416,752
|
|
Mortgage warehouse
|
64,132
|
|
|
67,038
|
|
||
Real estate:
|
|
|
|
||||
Commercial real estate (including multi-family residential)
|
961,212
|
|
|
891,989
|
|
||
Commercial real estate construction and land development
|
175,264
|
|
|
159,247
|
|
||
1-4 family residential (including home equity)
|
250,881
|
|
|
246,987
|
|
||
Residential construction
|
99,648
|
|
|
98,657
|
|
||
Consumer and other
|
10,147
|
|
|
10,965
|
|
||
Total loans
|
1,986,438
|
|
|
1,891,635
|
|
||
Allowance for loan losses
|
(18,687
|
)
|
|
(17,911
|
)
|
||
Loans, net
|
$
|
1,967,751
|
|
|
$
|
1,873,724
|
|
|
March 31, 2017
|
||||||||||||||||||||||
|
Loans Past Due and Still Accruing
|
|
|
|
|
|
|
||||||||||||||||
|
30-89
Days
|
|
90 or More
Days
|
|
Total Past
Due Loans
|
|
Nonaccrual
Loans
|
|
Current
Loans
|
|
Total
Loans
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
1,499
|
|
|
$
|
—
|
|
|
$
|
1,499
|
|
|
$
|
8,933
|
|
|
$
|
414,722
|
|
|
$
|
425,154
|
|
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,132
|
|
|
64,132
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate (including multi-family residential)
|
1,747
|
|
|
—
|
|
|
1,747
|
|
|
9,726
|
|
|
949,739
|
|
|
961,212
|
|
||||||
Commercial real estate construction and land development
|
130
|
|
|
—
|
|
|
130
|
|
|
70
|
|
|
175,064
|
|
|
175,264
|
|
||||||
1-4 family residential (including home equity)
|
198
|
|
|
—
|
|
|
198
|
|
|
574
|
|
|
250,109
|
|
|
250,881
|
|
||||||
Residential construction
|
248
|
|
|
—
|
|
|
248
|
|
|
—
|
|
|
99,400
|
|
|
99,648
|
|
||||||
Consumer and other
|
87
|
|
|
—
|
|
|
87
|
|
|
12
|
|
|
10,048
|
|
|
10,147
|
|
||||||
Total loans
|
$
|
3,909
|
|
|
$
|
—
|
|
|
$
|
3,909
|
|
|
$
|
19,315
|
|
|
$
|
1,963,214
|
|
|
$
|
1,986,438
|
|
|
December 31, 2016
|
||||||||||||||||||||||
|
Loans Past Due and Still Accruing
|
|
|
|
|
|
|
||||||||||||||||
|
30-89
Days
|
|
90 or More
Days
|
|
Total Past
Due Loans
|
|
Nonaccrual
Loans
|
|
Current
Loans
|
|
Total
Loans
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
1,028
|
|
|
$
|
911
|
|
|
$
|
1,939
|
|
|
$
|
3,896
|
|
|
$
|
410,917
|
|
|
$
|
416,752
|
|
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,038
|
|
|
67,038
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate (including multi-family residential)
|
1,661
|
|
|
—
|
|
|
1,661
|
|
|
11,663
|
|
|
878,665
|
|
|
891,989
|
|
||||||
Commercial real estate construction and land development
|
263
|
|
|
—
|
|
|
263
|
|
|
—
|
|
|
158,984
|
|
|
159,247
|
|
||||||
1-4 family residential (including home equity)
|
280
|
|
|
—
|
|
|
280
|
|
|
217
|
|
|
246,490
|
|
|
246,987
|
|
||||||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98,657
|
|
|
98,657
|
|
||||||
Consumer and other
|
125
|
|
|
—
|
|
|
125
|
|
|
12
|
|
|
10,828
|
|
|
10,965
|
|
||||||
Total loans
|
$
|
3,357
|
|
|
$
|
911
|
|
|
$
|
4,268
|
|
|
$
|
15,788
|
|
|
$
|
1,871,579
|
|
|
$
|
1,891,635
|
|
|
March 31, 2017
|
||||||||||
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Allowance
|
||||||
|
(Dollars in thousands)
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
8,186
|
|
|
$
|
8,709
|
|
|
$
|
—
|
|
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
||||||
Commercial real estate (including multi-family residential)
|
16,365
|
|
|
16,450
|
|
|
—
|
|
|||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|||
1-4 family residential (including home equity)
|
574
|
|
|
574
|
|
|
—
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
12
|
|
|
12
|
|
|
—
|
|
|||
Total
|
25,137
|
|
|
25,745
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial and industrial
|
7,311
|
|
|
7,532
|
|
|
2,228
|
|
|||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
||||||
Commercial real estate (including multi-family residential)
|
390
|
|
|
390
|
|
|
92
|
|
|||
Commercial real estate construction and land development
|
70
|
|
|
70
|
|
|
4
|
|
|||
1-4 family residential (including home equity)
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total
|
7,771
|
|
|
7,992
|
|
|
2,324
|
|
|||
|
|
|
|
|
|
||||||
Total:
|
|
|
|
|
|
||||||
Commercial and industrial
|
15,497
|
|
|
16,241
|
|
|
2,228
|
|
|||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
||||||
Commercial real estate (including multi-family residential)
|
16,755
|
|
|
16,840
|
|
|
92
|
|
|||
Commercial real estate construction and land development
|
70
|
|
|
70
|
|
|
4
|
|
|||
1-4 family residential (including home equity)
|
574
|
|
|
574
|
|
|
—
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
12
|
|
|
12
|
|
|
—
|
|
|||
|
$
|
32,908
|
|
|
$
|
33,737
|
|
|
$
|
2,324
|
|
|
December 31, 2016
|
||||||||||
|
Recorded Investment
|
|
Unpaid Principal
Balance
|
|
Related Allowance
|
||||||
|
(Dollars in thousands)
|
||||||||||
With no related allowance recorded:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
5,300
|
|
|
$
|
5,414
|
|
|
$
|
—
|
|
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
||||||
Commercial real estate (including multi-family residential)
|
11,748
|
|
|
11,833
|
|
|
—
|
|
|||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|||
1-4 family residential (including home equity)
|
217
|
|
|
217
|
|
|
—
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
5
|
|
|
5
|
|
|
—
|
|
|||
Total
|
17,270
|
|
|
17,469
|
|
|
—
|
|
|||
|
|
|
|
|
|
||||||
With an allowance recorded:
|
|
|
|
|
|
||||||
Commercial and industrial
|
3,108
|
|
|
3,328
|
|
|
1,543
|
|
|||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
||||||
Commercial real estate (including multi-family residential)
|
573
|
|
|
573
|
|
|
105
|
|
|||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|||
1-4 family residential (including home equity)
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
6
|
|
|
6
|
|
|
6
|
|
|||
Total
|
3,687
|
|
|
3,907
|
|
|
1,654
|
|
|||
|
|
|
|
|
|
||||||
Total:
|
|
|
|
|
|
||||||
Commercial and industrial
|
8,408
|
|
|
8,742
|
|
|
1,543
|
|
|||
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|||
Real estate:
|
|
|
|
|
|
||||||
Commercial real estate (including multi-family residential)
|
12,321
|
|
|
12,406
|
|
|
105
|
|
|||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|||
1-4 family residential (including home equity)
|
217
|
|
|
217
|
|
|
—
|
|
|||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer and other
|
11
|
|
|
11
|
|
|
6
|
|
|||
|
$
|
20,957
|
|
|
$
|
21,376
|
|
|
$
|
1,654
|
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Average Recorded Investment
|
|
Interest Income
Recognized
|
|
Average Recorded Investment
|
|
Interest Income
Recognized |
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Commercial and industrial
|
$
|
15,742
|
|
|
$
|
139
|
|
|
$
|
4,117
|
|
|
$
|
55
|
|
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
||||||||
Commercial real estate (including multi-family residential)
|
16,854
|
|
|
77
|
|
|
8,957
|
|
|
58
|
|
||||
Commercial real estate construction and land development
|
72
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
1-4 family residential (including home equity)
|
575
|
|
|
1
|
|
|
939
|
|
|
10
|
|
||||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and other
|
14
|
|
|
—
|
|
|
55
|
|
|
2
|
|
||||
Total
|
$
|
33,257
|
|
|
$
|
217
|
|
|
$
|
14,068
|
|
|
$
|
125
|
|
|
Pass
|
|
Watch
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
390,673
|
|
|
$
|
11,858
|
|
|
$
|
2,727
|
|
|
$
|
19,896
|
|
|
$
|
—
|
|
|
$
|
425,154
|
|
Mortgage warehouse
|
64,132
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,132
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial real estate (including multi-family residential)
|
899,331
|
|
|
19,428
|
|
|
7,186
|
|
|
35,267
|
|
|
—
|
|
|
961,212
|
|
||||||
Commercial real estate construction and land development
|
164,822
|
|
|
5,315
|
|
|
—
|
|
|
5,127
|
|
|
—
|
|
|
175,264
|
|
||||||
1-4 family residential (including home equity)
|
245,768
|
|
|
805
|
|
|
1,438
|
|
|
2,870
|
|
|
—
|
|
|
250,881
|
|
||||||
Residential construction
|
99,131
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
—
|
|
|
99,648
|
|
||||||
Consumer and other
|
9,739
|
|
|
340
|
|
|
4
|
|
|
64
|
|
|
—
|
|
|
10,147
|
|
||||||
Total loans
|
$
|
1,873,596
|
|
|
$
|
37,746
|
|
|
$
|
11,872
|
|
|
$
|
63,224
|
|
|
$
|
—
|
|
|
$
|
1,986,438
|
|
|
Pass
|
|
Watch
|
|
Special Mention
|
|
Substandard
|
|
Doubtful
|
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||
Commercial and industrial
|
$
|
384,979
|
|
|
$
|
11,784
|
|
|
$
|
3,344
|
|
|
$
|
16,645
|
|
|
$
|
—
|
|
|
$
|
416,752
|
|
Mortgage warehouse
|
67,038
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67,038
|
|
||||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial real estate (including multi-family residential)
|
834,781
|
|
|
16,009
|
|
|
6,804
|
|
|
34,395
|
|
|
—
|
|
|
891,989
|
|
||||||
Commercial real estate construction and land development
|
149,010
|
|
|
8,124
|
|
|
—
|
|
|
2,113
|
|
|
—
|
|
|
159,247
|
|
||||||
1-4 family residential (including home equity)
|
242,208
|
|
|
512
|
|
|
2,069
|
|
|
2,198
|
|
|
—
|
|
|
246,987
|
|
||||||
Residential construction
|
97,808
|
|
|
—
|
|
|
415
|
|
|
434
|
|
|
—
|
|
|
98,657
|
|
||||||
Consumer and other
|
10,520
|
|
|
364
|
|
|
4
|
|
|
77
|
|
|
—
|
|
|
10,965
|
|
||||||
Total loans
|
$
|
1,786,344
|
|
|
$
|
36,793
|
|
|
$
|
12,636
|
|
|
$
|
55,862
|
|
|
$
|
—
|
|
|
$
|
1,891,635
|
|
|
Commercial
and
industrial
|
|
Mortgage
warehouse
|
|
Commercial
real estate
(including
multi-family
residential)
|
|
Commercial
real estate
construction
and land
development
|
|
1-4 family
residential
(including
home equity)
|
|
Residential
construction
|
|
Consumer
and other
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance January 1, 2017
|
$
|
5,059
|
|
|
$
|
—
|
|
|
$
|
8,950
|
|
|
$
|
1,217
|
|
|
$
|
1,876
|
|
|
$
|
748
|
|
|
$
|
61
|
|
|
$
|
17,911
|
|
Provision for loan losses
|
806
|
|
|
—
|
|
|
208
|
|
|
391
|
|
|
(40
|
)
|
|
(11
|
)
|
|
(11
|
)
|
|
1,343
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Charge-offs
|
(627
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(627
|
)
|
||||||||
Recoveries
|
46
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
4
|
|
|
60
|
|
||||||||
Net charge-offs
|
(581
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
4
|
|
|
(567
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance March 31, 2017
|
$
|
5,284
|
|
|
$
|
—
|
|
|
$
|
9,158
|
|
|
$
|
1,608
|
|
|
$
|
1,846
|
|
|
$
|
737
|
|
|
$
|
54
|
|
|
$
|
18,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance January 1, 2016
|
$
|
3,644
|
|
|
$
|
—
|
|
|
$
|
5,914
|
|
|
$
|
1,221
|
|
|
$
|
1,432
|
|
|
$
|
820
|
|
|
$
|
67
|
|
|
$
|
13,098
|
|
Provision for loan losses
|
379
|
|
|
—
|
|
|
77
|
|
|
131
|
|
|
42
|
|
|
69
|
|
|
12
|
|
|
710
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Charge-offs
|
(1
|
)
|
|
—
|
|
|
(86
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(97
|
)
|
||||||||
Recoveries
|
35
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
1
|
|
|
46
|
|
||||||||
Net charge-offs
|
34
|
|
|
—
|
|
|
(86
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
(9
|
)
|
|
(51
|
)
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance March 31, 2016
|
$
|
4,057
|
|
|
$
|
—
|
|
|
$
|
5,905
|
|
|
$
|
1,352
|
|
|
$
|
1,484
|
|
|
$
|
889
|
|
|
$
|
70
|
|
|
$
|
13,757
|
|
|
Commercial
and
industrial
|
|
Mortgage
warehouse
|
|
Commercial
real estate
(including
multi-family
residential)
|
|
Commercial
real estate
construction
and land
development
|
|
1-4 family
residential
(including
home equity)
|
|
Residential
construction
|
|
Consumer
and other
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Allowance for loan losses related to:
|
|||||||||||||||||||||||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
2,228
|
|
|
$
|
—
|
|
|
$
|
92
|
|
|
$
|
4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,324
|
|
Collectively evaluated for impairment
|
3,056
|
|
|
—
|
|
|
9,066
|
|
|
1,604
|
|
|
1,846
|
|
|
737
|
|
|
54
|
|
|
16,363
|
|
||||||||
Total allowance for loan losses
|
$
|
5,284
|
|
|
$
|
—
|
|
|
$
|
9,158
|
|
|
$
|
1,608
|
|
|
$
|
1,846
|
|
|
$
|
737
|
|
|
$
|
54
|
|
|
$
|
18,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
1,543
|
|
|
$
|
—
|
|
|
$
|
105
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
1,654
|
|
Collectively evaluated for impairment
|
3,516
|
|
|
—
|
|
|
8,845
|
|
|
1,217
|
|
|
1,876
|
|
|
748
|
|
|
55
|
|
|
16,257
|
|
||||||||
Total allowance for loan losses
|
$
|
5,059
|
|
|
$
|
—
|
|
|
$
|
8,950
|
|
|
$
|
1,217
|
|
|
$
|
1,876
|
|
|
$
|
748
|
|
|
$
|
61
|
|
|
$
|
17,911
|
|
|
Commercial
and
industrial
|
|
Mortgage
warehouse
|
|
Commercial
real estate
(including
multi-family
residential)
|
|
Commercial
real estate
construction
and land
development
|
|
1-4 family
residential
(including
home equity)
|
|
Residential
construction
|
|
Consumer
and other
|
|
Total
|
||||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||||
Recorded investment in loans:
|
|||||||||||||||||||||||||||||||
March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
15,497
|
|
|
$
|
—
|
|
|
$
|
16,755
|
|
|
$
|
70
|
|
|
$
|
574
|
|
|
$
|
—
|
|
|
$
|
12
|
|
|
$
|
32,908
|
|
Collectively evaluated for impairment
|
409,657
|
|
|
64,132
|
|
|
944,457
|
|
|
175,194
|
|
|
250,307
|
|
|
99,648
|
|
|
10,135
|
|
|
1,953,530
|
|
||||||||
Total loans evaluated for impairment
|
$
|
425,154
|
|
|
$
|
64,132
|
|
|
$
|
961,212
|
|
|
$
|
175,264
|
|
|
$
|
250,881
|
|
|
$
|
99,648
|
|
|
$
|
10,147
|
|
|
$
|
1,986,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
8,408
|
|
|
$
|
—
|
|
|
$
|
12,321
|
|
|
$
|
—
|
|
|
$
|
217
|
|
|
$
|
—
|
|
|
$
|
11
|
|
|
$
|
20,957
|
|
Collectively evaluated for impairment
|
408,344
|
|
|
67,038
|
|
|
879,668
|
|
|
159,247
|
|
|
246,770
|
|
|
98,657
|
|
|
10,954
|
|
|
1,870,678
|
|
||||||||
Total loans evaluated for impairment
|
$
|
416,752
|
|
|
$
|
67,038
|
|
|
$
|
891,989
|
|
|
$
|
159,247
|
|
|
$
|
246,987
|
|
|
$
|
98,657
|
|
|
$
|
10,965
|
|
|
$
|
1,891,635
|
|
|
As of March 31,
|
||||||||||||||||||||
|
2017
|
|
2016
|
||||||||||||||||||
|
Number of
Contracts
|
|
Pre-
Modification of
Outstanding
Recorded
Investment
|
|
Post-
Modification of
Outstanding
Recorded
Investment
|
|
Number of
Contracts
|
|
Pre-
Modification of
Outstanding
Recorded
Investment
|
|
Post-
Modification of
Outstanding
Recorded
Investment
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||
Troubled Debt Restructurings
|
|||||||||||||||||||||
Commercial and industrial
|
1
|
|
|
$
|
316
|
|
|
$
|
316
|
|
|
4
|
|
|
$
|
873
|
|
|
$
|
873
|
|
Mortgage warehouse
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Real estate:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate (including multi-family residential)
|
1
|
|
|
1,328
|
|
|
1,328
|
|
|
4
|
|
|
5,254
|
|
|
5,254
|
|
||||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
1-4 family residential (including home equity)
|
1
|
|
|
86
|
|
|
86
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Residential construction
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Consumer and other
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
7
|
|
|
7
|
|
||||
Total
|
3
|
|
|
$
|
1,730
|
|
|
$
|
1,730
|
|
|
9
|
|
|
$
|
6,134
|
|
|
$
|
6,134
|
|
•
|
Level 1—Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
•
|
Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
•
|
Level 3—Significant unobservable inputs that reflect management’s judgment and assumptions that market participants would use in pricing an asset or liability that are supported by little or no market activity.
|
|
As of March 31, 2017
|
||||||||||||||||||
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Financial assets
|
(Dollars in thousands)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
184,146
|
|
|
$
|
184,146
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
184,146
|
|
Available for sale securities
|
317,219
|
|
|
—
|
|
|
317,219
|
|
|
—
|
|
|
317,219
|
|
|||||
Loans held for investment, net of allowance
|
1,967,751
|
|
|
—
|
|
|
—
|
|
|
1,969,375
|
|
|
1,969,375
|
|
|||||
FHLB stock
|
19,863
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
7,444
|
|
|
—
|
|
|
2,050
|
|
|
5,394
|
|
|
7,444
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
2,012,569
|
|
|
$
|
—
|
|
|
$
|
2,011,425
|
|
|
—
|
|
|
$
|
2,011,425
|
|
|
Accrued interest payable
|
245
|
|
|
—
|
|
|
245
|
|
|
—
|
|
|
245
|
|
|||||
Short-term borrowings
|
75,000
|
|
|
—
|
|
|
75,000
|
|
|
—
|
|
|
75,000
|
|
|||||
Other borrowed funds
|
200,569
|
|
|
—
|
|
|
200,302
|
|
|
—
|
|
|
200,302
|
|
|||||
Subordinated debentures
|
9,222
|
|
|
—
|
|
|
9,222
|
|
|
—
|
|
|
9,222
|
|
|
As of December 31, 2016
|
||||||||||||||||||
|
Carrying
|
|
Estimated Fair Value
|
||||||||||||||||
|
Amount
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||
Financial assets
|
(Dollars in thousands)
|
||||||||||||||||||
Cash and cash equivalents
|
$
|
142,098
|
|
|
$
|
142,098
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
142,098
|
|
Available for sale securities
|
316,455
|
|
|
—
|
|
|
316,455
|
|
|
—
|
|
|
316,455
|
|
|||||
Loans held for investment, net of allowance
|
1,873,724
|
|
|
—
|
|
|
—
|
|
|
1,872,056
|
|
|
1,872,056
|
|
|||||
FHLB stock
|
13,175
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|||||
Accrued interest receivable
|
9,007
|
|
|
3
|
|
|
3,616
|
|
|
5,388
|
|
|
9,007
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits
|
$
|
1,870,183
|
|
|
$
|
—
|
|
|
$
|
1,868,429
|
|
|
$
|
—
|
|
|
$
|
1,868,429
|
|
Accrued interest payable
|
285
|
|
|
—
|
|
|
285
|
|
|
—
|
|
|
285
|
|
|||||
Short-term borrowings
|
85,000
|
|
|
—
|
|
|
85,000
|
|
|
—
|
|
|
85,000
|
|
|||||
Other borrowed funds
|
200,569
|
|
|
—
|
|
|
199,989
|
|
|
—
|
|
|
199,989
|
|
|||||
Subordinated debentures
|
9,196
|
|
|
—
|
|
|
9,196
|
|
|
—
|
|
|
9,196
|
|
|
As of March 31, 2017
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
$
|
—
|
|
|
$
|
6,163
|
|
|
$
|
—
|
|
|
$
|
6,163
|
|
Municipal securities
|
—
|
|
|
236,551
|
|
|
—
|
|
|
236,551
|
|
||||
Agency mortgage-backed pass-through securities
|
—
|
|
|
28,325
|
|
|
—
|
|
|
28,325
|
|
||||
Corporate bonds and other
|
—
|
|
|
46,180
|
|
|
—
|
|
|
46,180
|
|
||||
Total
|
$
|
—
|
|
|
$
|
317,219
|
|
|
$
|
—
|
|
|
$
|
317,219
|
|
|
As of December 31, 2016
|
||||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for sale securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
$
|
—
|
|
|
$
|
6,149
|
|
|
$
|
—
|
|
|
$
|
6,149
|
|
Municipal securities
|
—
|
|
|
237,802
|
|
|
—
|
|
|
237,802
|
|
||||
Agency mortgage-backed pass-through securities
|
—
|
|
|
27,324
|
|
|
—
|
|
|
27,324
|
|
||||
Corporate bonds and other
|
—
|
|
|
45,180
|
|
|
—
|
|
|
45,180
|
|
||||
Total
|
$
|
—
|
|
|
$
|
316,455
|
|
|
$
|
—
|
|
|
$
|
316,455
|
|
|
As of March 31, 2017
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
|
(Dollars in thousands)
|
||||||||||
Impaired loans:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,304
|
|
Commercial real estate (including multi-family residential)
|
—
|
|
|
—
|
|
|
298
|
|
|||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
|
66
|
|
|||
Other real estate owned
|
—
|
|
|
—
|
|
|
365
|
|
|||
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,033
|
|
|
As of December 31, 2016
|
||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||
|
(Dollars in thousands)
|
||||||||||
Impaired loans:
|
|
|
|
|
|
||||||
Commercial and industrial
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,785
|
|
Commercial real estate (including multi-family residential)
|
—
|
|
|
—
|
|
|
468
|
|
|||
Other real estate owned
|
—
|
|
|
—
|
|
|
1,503
|
|
|||
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,756
|
|
Within one year
|
$
|
473,222
|
|
After one but within two years
|
183,913
|
|
|
After two but within three years
|
55,429
|
|
|
After three but within four years
|
15,896
|
|
|
After four but within five years
|
36,990
|
|
|
Total
|
$
|
765,450
|
|
Remaining 2017
|
$
|
—
|
|
2018
|
—
|
|
|
2019
|
—
|
|
|
2020
|
—
|
|
|
2021 and thereafter
|
569
|
|
|
Total
|
$
|
569
|
|
Description
|
|
Issuance Date
|
|
Trust
Preferred
Securities
Outstanding
|
|
Interest Rate
(1)
|
|
Junior
Subordinated
Debt Owed to
Trusts
|
|
Maturity Date
(2)
|
||||
(Dollars in thousands)
|
||||||||||||||
Farmers & Merchants Capital Trust II
|
|
November 13, 2003
|
|
$
|
7,500
|
|
|
3 month LIBOR + 3.00%
|
|
$
|
7,732
|
|
|
November 8, 2033
|
Farmers & Merchants Capital Trust III
|
|
June 30, 2005
|
|
3,500
|
|
|
3 month LIBOR + 1.80%
|
|
3,609
|
|
|
July 7, 2035
|
||
|
|
|
|
|
|
|
|
$
|
11,341
|
|
|
|
(1)
|
The 3-month LIBOR in effect as of
March 31, 2017
was
1.1347%
.
|
(2)
|
All debentures are currently callable.
|
|
Number of
Options
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual Term
|
|
Aggregate
Intrinsic
Value
|
|||||
|
(In thousands)
|
|
|
|
(In years)
|
|
(In thousands)
|
|||||
Options outstanding, January 1, 2017
|
935
|
|
|
$
|
18.21
|
|
|
6.23
|
|
$
|
16,773
|
|
Options granted
|
17
|
|
|
32.45
|
|
|
|
|
|
|||
Options exercised
|
(119
|
)
|
|
17.59
|
|
|
|
|
|
|||
Options forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Options outstanding, March 31, 2017
|
833
|
|
|
$
|
18.65
|
|
|
6.15
|
|
$
|
15,457
|
|
Options vested and exercisable, March 31, 2017
|
491
|
|
|
$
|
15.93
|
|
|
4.71
|
|
$
|
10,444
|
|
|
Number of
Shares
|
|
Weighted
Average Grant
Date Fair
Value
|
|||
|
(Shares in thousands)
|
|||||
Nonvested share awards outstanding, January 1, 2017
|
24
|
|
|
$
|
18.31
|
|
Share awards granted
|
11
|
|
|
32.45
|
|
|
Share awards vested
|
(10
|
)
|
|
13.32
|
|
|
Unvested share awards forfeited
|
—
|
|
|
—
|
|
|
Nonvested share awards outstanding, March 31, 2017
|
25
|
|
|
$
|
24.59
|
|
|
March 31,
2017 |
|
December 31,
2016 |
||||||||||||
|
Fixed
Rate
|
|
Variable
Rate
|
|
Fixed
Rate
|
|
Variable
Rate
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Commitments to extend credit
|
$
|
363,604
|
|
|
$
|
261,970
|
|
|
$
|
353,822
|
|
|
$
|
232,551
|
|
Standby letters of credit
|
9,615
|
|
|
1,075
|
|
|
9,423
|
|
|
124
|
|
||||
Total
|
$
|
373,219
|
|
|
$
|
263,045
|
|
|
$
|
363,245
|
|
|
$
|
232,675
|
|
|
Actual
|
|
Minimum Required For Capital
Adequacy Purposes
|
|
Minimum Required For Plus Capital
Conservation Buffer |
|
To Be Categorized As
Well Capitalized Under
Prompt Corrective
Action Provisions
|
||||||||||||||||||||
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||
ALLEGIANCE BANCSHARES, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Consolidated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Capital (to risk weighted assets)
|
$
|
276,836
|
|
|
12.35
|
%
|
|
$
|
179,356
|
|
|
8.00
|
%
|
|
$
|
207,380
|
|
|
9.250
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Common Equity Tier 1 Capital (to risk weighted assets)
|
248,926
|
|
|
11.10
|
%
|
|
100,888
|
|
|
4.50
|
%
|
|
128,912
|
|
|
5.750
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Tier I Capital (to risk weighted assets)
|
258,148
|
|
|
11.51
|
%
|
|
134,517
|
|
|
6.00
|
%
|
|
162,541
|
|
|
7.250
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Tier I Capital (to average tangible assets)
|
258,148
|
|
|
10.28
|
%
|
|
100,471
|
|
|
4.00
|
%
|
|
100,471
|
|
|
4.000
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Capital (to risk weighted assets)
|
$
|
268,155
|
|
|
12.57
|
%
|
|
$
|
170,690
|
|
|
8.00
|
%
|
|
$
|
184,025
|
|
|
8.625
|
%
|
|
N/A
|
|
|
N/A
|
|
|
Common Equity Tier 1 Capital (to risk weighted assets)
|
241,048
|
|
|
11.30
|
%
|
|
96,013
|
|
|
4.50
|
%
|
|
109,348
|
|
|
5.125
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Tier I Capital (to risk weighted assets)
|
250,244
|
|
|
11.73
|
%
|
|
128,018
|
|
|
6.00
|
%
|
|
141,353
|
|
|
6.625
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
Tier I Capital (to average tangible assets)
|
250,244
|
|
|
10.35
|
%
|
|
96,708
|
|
|
4.00
|
%
|
|
96,708
|
|
|
4.000
|
%
|
|
N/A
|
|
|
N/A
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
ALLEGIANCE BANK
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Capital (to risk weighted assets)
|
$
|
253,957
|
|
|
11.33
|
%
|
|
$
|
179,280
|
|
|
8.00
|
%
|
|
$
|
207,293
|
|
|
9.250
|
%
|
|
$
|
224,100
|
|
|
10.00
|
%
|
Common Equity Tier 1 Capital (to risk weighted assets)
|
235,269
|
|
|
10.50
|
%
|
|
100,845
|
|
|
4.50
|
%
|
|
128,858
|
|
|
5.750
|
%
|
|
145,665
|
|
|
6.50
|
%
|
||||
Tier I Capital (to risk weighted assets)
|
235,269
|
|
|
10.50
|
%
|
|
134,460
|
|
|
6.00
|
%
|
|
162,473
|
|
|
7.250
|
%
|
|
179,280
|
|
|
8.00
|
%
|
||||
Tier I Capital (to average tangible assets)
|
235,269
|
|
|
9.37
|
%
|
|
100,437
|
|
|
4.00
|
%
|
|
100,437
|
|
|
4.000
|
%
|
|
125,547
|
|
|
5.00
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
As of December 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total Capital (to risk weighted assets)
|
$
|
247,606
|
|
|
11.61
|
%
|
|
$
|
170,630
|
|
|
8.00
|
%
|
|
$
|
183,960
|
|
|
8.625
|
%
|
|
$
|
213,288
|
|
|
10.00
|
%
|
Common Equity Tier 1 Capital (to risk weighted assets)
|
229,694
|
|
|
10.77
|
%
|
|
95,979
|
|
|
4.50
|
%
|
|
109,310
|
|
|
5.125
|
%
|
|
138,637
|
|
|
6.50
|
%
|
||||
Tier I Capital (to risk weighted assets)
|
229,694
|
|
|
10.77
|
%
|
|
127,973
|
|
|
6.00
|
%
|
|
141,303
|
|
|
6.625
|
%
|
|
170,630
|
|
|
8.00
|
%
|
||||
Tier I Capital (to average tangible assets)
|
229,694
|
|
|
9.50
|
%
|
|
96,679
|
|
|
4.00
|
%
|
|
96,679
|
|
|
4.000
|
%
|
|
120,849
|
|
|
5.00
|
%
|
|
Three Months Ended March 31,
|
||||||||||||||
|
2017
|
|
2016
|
||||||||||||
|
Amount
|
|
Per Share
Amount
|
|
Amount
|
|
Per Share
Amount
|
||||||||
|
(Amounts in thousands, except per share data)
|
||||||||||||||
Net income attributable to common shareholders
|
$
|
6,047
|
|
|
|
|
$
|
6,355
|
|
|
|
||||
Basic:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding
|
13,021
|
|
|
$
|
0.46
|
|
|
12,840
|
|
|
$
|
0.49
|
|
||
|
|
|
|
|
|
|
|
||||||||
Diluted:
|
|
|
|
|
|
|
|
||||||||
Add incremental shares for:
|
|
|
|
|
|
|
|
||||||||
Dilutive effect of stock option exercises
|
356
|
|
|
|
|
127
|
|
|
|
||||||
Total
|
13,377
|
|
|
$
|
0.45
|
|
|
12,967
|
|
|
$
|
0.49
|
|
•
|
risks related to the concentration of our business in the Houston metropolitan area, including risks associated with volatility or decreases in oil and gas prices or prolonged periods of lower oil and gas prices;
|
•
|
general market conditions and economic trends nationally, regionally and locally particularly in the Houston metropolitan area;
|
•
|
our ability to retain executive officers and key employees and their customer and community relationships;
|
•
|
our ability to recruit and retain successful bankers that meet our expectations in terms of customer and community relationships and profitability;
|
•
|
risks related to our strategic focus on lending to small to medium-sized businesses;
|
•
|
our ability to implement our growth strategy, including through the identification of acquisition candidates that will be accretive to our financial condition and results of operations, as well as permitting decision-making authority at the bank location level;
|
•
|
risks related to any businesses we acquire in the future, including exposure to potential asset and credit quality risks and unknown or contingent liabilities, the time and costs associated with integrating systems, technology platforms, procedures and personnel, the need for additional capital to finance such transactions and possible failures in realizing the anticipated benefits from such acquisitions;
|
•
|
potential impairment on the goodwill we have recorded or may record in connection with business acquisitions;
|
•
|
risks associated with our owner-occupied commercial real estate loan and other commercial real estate loan portfolios, including the risks inherent in the valuation of the collateral securing such loans;
|
•
|
risks associated with our commercial and industrial loan portfolio, including the risk for deterioration in value of the general business assets that generally secure such loans;
|
•
|
the accuracy and sufficiency of the assumptions and estimates we make in establishing reserves for potential loan losses and other estimates;
|
•
|
risk of deteriorating asset quality and higher loan charge-offs, as well as the time and effort necessary to resolve nonperforming assets;
|
•
|
potential changes in the prices, values and sales volumes of commercial and residential real estate securing our real estate loans;
|
•
|
changes in market interest rates that affect the pricing of our loans and deposits and our net interest income;
|
•
|
potential fluctuations in the market value and liquidity of the securities we hold for sale;
|
•
|
risk of impairment of investment securities, goodwill, other intangible assets or deferred tax assets;
|
•
|
the effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services, which may adversely affect our pricing and terms;
|
•
|
risks associated with negative public perception of the Company;
|
•
|
our ability to maintain an effective system of disclosure controls and procedures and internal control over financial reporting;
|
•
|
risks associated with fraudulent and negligent acts by our customers, employees or vendors;
|
•
|
our ability to keep pace with technological change or difficulties when implementing new technologies;
|
•
|
risks associated with system failures or failures to protect against cybersecurity threats, such as breaches of our network security;
|
•
|
risks associated with data processing system failures and errors;
|
•
|
potential risk of environmental liability related to lending activities;
|
•
|
the institution and outcome of litigation and other legal proceeding against us or to which we become subject;
|
•
|
our ability to maintain adequate liquidity and to raise necessary capital to fund our acquisition strategy and operations or to meet increased minimum regulatory capital levels;
|
•
|
our ability to comply with various governmental and regulatory requirements applicable to financial institutions;
|
•
|
the impact of recent and future legislative and regulatory changes, including changes in banking, securities and tax laws and regulations and their application by our regulators, such as the further implementation of the Dodd-Frank Act;
|
•
|
governmental monetary and fiscal policies, including the policies of the Federal Reserve;
|
•
|
our ability to comply with supervisory actions by federal and state banking agencies;
|
•
|
changes in the scope and cost of FDIC insurance and other coverage;
|
•
|
systemic risks associated with the soundness of other financial institutions;
|
•
|
the effects of war or other conflicts, acts of terrorism (including cyberattacks) or other catastrophic events, including storms, droughts, tornadoes and flooding, that may effect general economic conditions; and
|
•
|
other risks and uncertainties listed from time to time in our reports and documents filed with the SEC.
|
•
|
increasing the productivity of existing bankers, as measured by loans, deposits and fee income per banker, while enhancing profitability by leveraging our existing operating platform;
|
•
|
focusing on local and individualized decision-making, allowing us to provide customers with rapid decisions on loan requests, which we believe allows us to effectively compete with larger financial institutions;
|
•
|
identifying and hiring additional seasoned bankers in the Houston metropolitan area who will thrive within our super-community banking model, and opening additional branches where we are able to attract seasoned bankers; and
|
•
|
developing new products designed to serve the increasingly diversified Houston economy, while preserving our strong culture of risk management.
|
|
Three Months Ended March 31,
|
||||||||||||||||||||
|
2017
|
|
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)
|
$
|
1,928,333
|
|
|
$
|
25,260
|
|
|
5.31
|
%
|
|
$
|
1,663,711
|
|
|
$
|
22,228
|
|
|
5.37
|
%
|
Securities
|
325,911
|
|
|
2,122
|
|
|
2.64
|
%
|
|
186,460
|
|
|
1,081
|
|
|
2.33
|
%
|
||||
Deposits in other financial institutions
|
53,338
|
|
|
130
|
|
|
0.99
|
%
|
|
91,824
|
|
|
142
|
|
|
0.62
|
%
|
||||
Total interest-earning assets
|
2,307,582
|
|
|
$
|
27,512
|
|
|
4.84
|
%
|
|
1,941,995
|
|
|
$
|
23,451
|
|
|
4.86
|
%
|
||
Allowance for loan losses
|
(18,200
|
)
|
|
|
|
|
|
(13,487
|
)
|
|
|
|
|
||||||||
Noninterest-earning assets
|
259,315
|
|
|
|
|
|
|
226,946
|
|
|
|
|
|
||||||||
Total assets
|
$
|
2,548,697
|
|
|
|
|
|
|
$
|
2,155,454
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand deposits
|
$
|
130,909
|
|
|
$
|
100
|
|
|
0.31
|
%
|
|
$
|
95,506
|
|
|
$
|
67
|
|
|
0.28
|
%
|
Money market and savings deposits
|
486,779
|
|
|
554
|
|
|
0.46
|
%
|
|
433,139
|
|
|
477
|
|
|
0.44
|
%
|
||||
Certificates and other time deposits
|
685,169
|
|
|
1,957
|
|
|
1.16
|
%
|
|
614,216
|
|
|
1,560
|
|
|
1.02
|
%
|
||||
Short-term borrowings
|
145,278
|
|
|
324
|
|
|
0.91
|
%
|
|
126,374
|
|
|
139
|
|
|
0.44
|
%
|
||||
Subordinated debt
|
9,205
|
|
|
120
|
|
|
5.28
|
%
|
|
9,098
|
|
|
117
|
|
|
5.19
|
%
|
||||
Other borrowed funds
|
200,570
|
|
|
329
|
|
|
0.66
|
%
|
|
569
|
|
|
7
|
|
|
5.23
|
%
|
||||
Total interest-bearing liabilities
|
1,657,910
|
|
|
$
|
3,384
|
|
|
0.83
|
%
|
|
1,278,902
|
|
|
$
|
2,367
|
|
|
0.74
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing demand deposits
|
600,006
|
|
|
|
|
|
|
605,969
|
|
|
|
|
|
||||||||
Other liabilities
|
5,892
|
|
|
|
|
|
|
7,186
|
|
|
|
|
|
||||||||
Total liabilities
|
2,263,808
|
|
|
|
|
|
|
1,892,057
|
|
|
|
|
|
||||||||
Shareholders' equity
|
284,889
|
|
|
|
|
|
|
263,397
|
|
|
|
|
|
||||||||
Total liabilities and shareholders' equity
|
$
|
2,548,697
|
|
|
|
|
|
|
$
|
2,155,454
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest rate spread
|
|
|
|
|
4.01
|
%
|
|
|
|
|
|
4.12
|
%
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income and margin
(2)
|
|
|
$
|
24,128
|
|
|
4.24
|
%
|
|
|
|
$
|
21,084
|
|
|
4.37
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income and margin (tax equivalent)
(3)
|
|
|
$
|
24,907
|
|
|
4.38
|
%
|
|
|
|
$
|
21,483
|
|
|
4.45
|
%
|
(1)
|
Includes loans held for sale during the first quarter 2016.
|
(2)
|
The net interest margin is equal to annualized net interest income divided by average interest-earning assets.
|
(3)
|
In order to make pretax income and resultant yields on tax-exempt investments and loans comparable to those on taxable investments and loans, a tax-equivalent adjustment has been computed using a federal income tax rate of 35% for the three months ended
March 31, 2017
and
March 31, 2016
and other applicable effective tax rates.
|
|
For the Three Months Ended March 31,
|
||||||||||||||
|
2017 vs. 2016
|
||||||||||||||
|
Increase
(Decrease)
Due to Change in
|
|
|
||||||||||||
|
Volume
|
|
Rate
|
|
Number of Days
|
|
Total
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Interest-earning Assets:
|
|
|
|
|
|
|
|
||||||||
Loans
|
$
|
3,496
|
|
|
$
|
(221
|
)
|
|
$
|
(244
|
)
|
|
$
|
3,031
|
|
Securities
|
805
|
|
|
249
|
|
|
(12
|
)
|
|
1,042
|
|
||||
Deposits in other financial institutions
|
(58
|
)
|
|
48
|
|
|
(2
|
)
|
|
(12
|
)
|
||||
Total increase (decrease) in interest income
|
4,243
|
|
|
76
|
|
|
(258
|
)
|
|
4,061
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest-bearing Liabilities:
|
|
|
|
|
|
|
|
||||||||
Interest-bearing demand deposits
|
25
|
|
|
9
|
|
|
(1
|
)
|
|
33
|
|
||||
Money market and savings deposits
|
60
|
|
|
23
|
|
|
(5
|
)
|
|
78
|
|
||||
Certificates and other time deposits
|
182
|
|
|
231
|
|
|
(17
|
)
|
|
396
|
|
||||
Short-term borrowings
|
21
|
|
|
166
|
|
|
(2
|
)
|
|
185
|
|
||||
Subordinated debt
|
1
|
|
|
3
|
|
|
(1
|
)
|
|
3
|
|
||||
Other borrowed funds
|
2,580
|
|
|
(2,258
|
)
|
|
—
|
|
|
322
|
|
||||
Total increase (decrease) in interest expense
|
2,869
|
|
|
(1,826
|
)
|
|
(26
|
)
|
|
1,017
|
|
||||
Increase (decrease) in net interest income
|
$
|
1,374
|
|
|
$
|
1,902
|
|
|
$
|
(232
|
)
|
|
$
|
3,044
|
|
|
For the Three Months
Ended March 31,
|
|
Increase
|
||||||||
|
2017
|
|
2016
|
|
(Decrease)
|
||||||
|
(Dollars in thousands)
|
||||||||||
Nonsufficient funds fees
|
$
|
199
|
|
|
$
|
163
|
|
|
$
|
36
|
|
Service charges on deposit accounts
|
195
|
|
|
145
|
|
|
50
|
|
|||
Gain on sale of branch assets
|
—
|
|
|
2,050
|
|
|
(2,050
|
)
|
|||
Bank owned life insurance income
|
148
|
|
|
166
|
|
|
(18
|
)
|
|||
Debit card and ATM card income
|
205
|
|
|
165
|
|
|
40
|
|
|||
Rebate from correspondent bank
|
233
|
|
|
150
|
|
|
83
|
|
|||
Other
(1)
|
361
|
|
|
465
|
|
|
(104
|
)
|
|||
Total noninterest income
|
$
|
1,341
|
|
|
$
|
3,304
|
|
|
$
|
(1,963
|
)
|
(1)
|
Other includes wire transfer and letter of credit fees, among other items.
|
|
For the Three Months
Ended March 31, |
|
Increase
|
||||||||
|
2017
|
|
2016
|
|
(Decrease)
|
||||||
|
(Dollars in thousands)
|
||||||||||
Salaries and employee benefits
(1)
|
$
|
10,562
|
|
|
$
|
9,273
|
|
|
$
|
1,289
|
|
Net occupancy and equipment
|
1,427
|
|
|
1,232
|
|
|
195
|
|
|||
Depreciation
|
400
|
|
|
417
|
|
|
(17
|
)
|
|||
Data processing and software amortization
|
695
|
|
|
653
|
|
|
42
|
|
|||
Professional fees
|
895
|
|
|
534
|
|
|
361
|
|
|||
Regulatory assessments and FDIC insurance
|
589
|
|
|
345
|
|
|
244
|
|
|||
Core deposit intangibles amortization
|
195
|
|
|
199
|
|
|
(4
|
)
|
|||
Communications
|
247
|
|
|
280
|
|
|
(33
|
)
|
|||
Advertising
|
263
|
|
|
201
|
|
|
62
|
|
|||
Other real estate expense
|
128
|
|
|
50
|
|
|
78
|
|
|||
Printing and supplies
|
69
|
|
|
46
|
|
|
23
|
|
|||
Other
|
1,079
|
|
|
1,023
|
|
|
56
|
|
|||
Total noninterest expense
|
$
|
16,549
|
|
|
$
|
14,253
|
|
|
$
|
2,296
|
|
(1)
|
Total salaries and employee benefits includes $341 thousand and $354 thousand for the three months ended
March 31, 2017
and 2016, respectively, in stock based compensation expense.
|
|
March 31, 2017
|
|
December 31, 2016
|
||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
||||||
|
(Dollars in thousands)
|
|
|
||||||||||
Commercial and industrial
|
$
|
425,154
|
|
|
21.4
|
%
|
|
$
|
416,752
|
|
|
22.0
|
%
|
Mortgage warehouse
|
64,132
|
|
|
3.2
|
%
|
|
67,038
|
|
|
3.5
|
%
|
||
Real estate:
|
|
|
|
|
|
|
|
||||||
Commercial real estate (including multi-family residential)
|
961,212
|
|
|
48.5
|
%
|
|
891,989
|
|
|
47.2
|
%
|
||
Commercial real estate construction and land development
|
175,264
|
|
|
8.8
|
%
|
|
159,247
|
|
|
8.4
|
%
|
||
1-4 family residential (including home equity)
|
250,881
|
|
|
12.6
|
%
|
|
246,987
|
|
|
13.1
|
%
|
||
Residential construction
|
99,648
|
|
|
5.0
|
%
|
|
98,657
|
|
|
5.2
|
%
|
||
Consumer and other
|
10,147
|
|
|
0.5
|
%
|
|
10,965
|
|
|
0.6
|
%
|
||
Total loans
|
1,986,438
|
|
|
100.0
|
%
|
|
1,891,635
|
|
|
100.0
|
%
|
||
Allowance for loan losses
|
(18,687
|
)
|
|
|
|
(17,911
|
)
|
|
|
||||
Loans, net
|
$
|
1,967,751
|
|
|
|
|
$
|
1,873,724
|
|
|
|
|
As of
March 31, 2017
|
|
As of
December 31, 2016
|
||||
|
(Dollars in thousands)
|
||||||
Nonaccrual loans:
|
|
|
|
||||
Commercial and industrial
|
$
|
8,933
|
|
|
$
|
3,896
|
|
Mortgage warehouse
|
—
|
|
|
—
|
|
||
Real estate:
|
|
|
|
||||
Commercial real estate (including multi-family residential)
|
9,726
|
|
|
11,663
|
|
||
Commercial real estate construction and land development
|
70
|
|
|
—
|
|
||
1-4 family residential (including home equity)
|
574
|
|
|
217
|
|
||
Residential construction
|
—
|
|
|
—
|
|
||
Consumer and other
|
12
|
|
|
12
|
|
||
Total nonaccrual loans
|
19,315
|
|
|
15,788
|
|
||
Accruing loans 90 or more days past due
|
—
|
|
|
911
|
|
||
Total nonperforming loans
|
19,315
|
|
|
16,699
|
|
||
Repossessed assets
|
365
|
|
|
1,503
|
|
||
Other real estate
|
260
|
|
|
286
|
|
||
Total nonperforming assets
|
$
|
19,940
|
|
|
$
|
18,488
|
|
Restructured loans
(1)
|
$
|
5,209
|
|
|
$
|
4,831
|
|
Nonperforming assets to total assets
|
0.77
|
%
|
|
0.75
|
%
|
||
Nonperforming loans to total loans
|
0.97
|
%
|
|
0.88
|
%
|
(1)
|
Restructured loans represent the balance at the end of the respective period for those loans modified in a troubled debt restructuring that are not already presented as a nonperforming loan.
|
|
As of and for the Three Months Ended March 31,
|
||||||
|
2017
|
|
2016
|
||||
|
(Dollars in thousands)
|
||||||
Average loans outstanding
|
$
|
1,928,333
|
|
|
$
|
1,663,711
|
|
Gross loans outstanding at end of period
|
1,986,438
|
|
|
1,717,448
|
|
||
Allowance for loan losses at beginning of period
|
17,911
|
|
|
13,098
|
|
||
Provision for loan losses
|
1,343
|
|
|
710
|
|
||
Charge-offs:
|
|
|
|
||||
Commercial and industrial loans
|
(627
|
)
|
|
(1
|
)
|
||
Mortgage warehouse
|
—
|
|
|
—
|
|
||
Real estate:
|
|
|
|
||||
Commercial real estate (including multi-family residential)
|
—
|
|
|
(86
|
)
|
||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
||
1-4 family residential (including home equity)
|
—
|
|
|
—
|
|
||
Residential construction
|
—
|
|
|
—
|
|
||
Consumer and other
|
—
|
|
|
(10
|
)
|
||
Total charge-offs for all loan types
|
(627
|
)
|
|
(97
|
)
|
||
Recoveries:
|
|
|
|
||||
Commercial and industrial loans
|
46
|
|
|
35
|
|
||
Mortgage warehouse
|
—
|
|
|
—
|
|
||
Real estate:
|
|
|
|
||||
Commercial real estate (including multi-family residential)
|
—
|
|
|
—
|
|
||
Commercial real estate construction and land development
|
—
|
|
|
—
|
|
||
1-4 family residential (including home equity)
|
10
|
|
|
10
|
|
||
Residential construction
|
—
|
|
|
—
|
|
||
Consumer and other
|
4
|
|
|
1
|
|
||
Total recoveries for all loan types
|
60
|
|
|
46
|
|
||
Net charge-offs
|
(567
|
)
|
|
(51
|
)
|
||
Allowance for loan losses at end of period
|
$
|
18,687
|
|
|
$
|
13,757
|
|
Allowance for loan losses to total loans
|
0.94
|
%
|
|
0.80
|
%
|
||
Net charge-offs to average loans
(1)
|
0.12
|
%
|
|
0.01
|
%
|
||
Allowance for loan losses to nonperforming loans
|
96.75
|
%
|
|
197.12
|
%
|
(1)
|
Interim period annualized.
|
|
March 31, 2017
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
$
|
5,895
|
|
|
$
|
268
|
|
|
$
|
—
|
|
|
$
|
6,163
|
|
Municipal securities
|
240,248
|
|
|
1,133
|
|
|
(4,830
|
)
|
|
236,551
|
|
||||
Agency mortgage-backed pass-through securities
|
28,470
|
|
|
243
|
|
|
(388
|
)
|
|
28,325
|
|
||||
Corporate bonds and other
|
46,105
|
|
|
167
|
|
|
(92
|
)
|
|
46,180
|
|
||||
Total
|
$
|
320,718
|
|
|
$
|
1,811
|
|
|
$
|
(5,310
|
)
|
|
$
|
317,219
|
|
|
December 31, 2016
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
|
|
Fair
Value
|
||||||||
|
(Dollars in thousands)
|
||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
||||||||
U.S. Government and agency securities
|
$
|
5,883
|
|
|
$
|
266
|
|
|
$
|
—
|
|
|
$
|
6,149
|
|
Municipal securities
|
242,501
|
|
|
956
|
|
|
(5,655
|
)
|
|
237,802
|
|
||||
Agency mortgage-backed pass-through securities
|
27,496
|
|
|
265
|
|
|
(437
|
)
|
|
27,324
|
|
||||
Corporate bonds and other
|
45,271
|
|
|
77
|
|
|
(168
|
)
|
|
45,180
|
|
||||
Total
|
$
|
321,151
|
|
|
$
|
1,564
|
|
|
$
|
(6,260
|
)
|
|
$
|
316,455
|
|
|
March 31, 2017
|
||||||||||||||||||||||||||||
|
Within One
Year
|
|
After One Year
but
Within Five Years
|
|
After Five Years but Within
Ten Years
|
|
After Ten
Years
|
|
Total
|
||||||||||||||||||||
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Total
|
Yield
|
|||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government and agency securities
|
$
|
—
|
|
0.00
|
%
|
|
$
|
2,015
|
|
1.46
|
%
|
|
$
|
3,880
|
|
3.37
|
%
|
|
$
|
—
|
|
0.00
|
%
|
|
$
|
5,895
|
|
2.72
|
%
|
Municipal securities
|
1,400
|
|
2.14
|
%
|
|
34,731
|
|
2.49
|
%
|
|
84,440
|
|
3.36
|
%
|
|
119,677
|
|
4.95
|
%
|
|
240,248
|
|
4.02
|
%
|
|||||
Agency mortgage-backed pass-through securities
|
—
|
|
0.00
|
%
|
|
—
|
|
0.00
|
%
|
|
4,014
|
|
2.20
|
%
|
|
24,456
|
|
2.67
|
%
|
|
28,470
|
|
2.61
|
%
|
|||||
Corporate bonds and other
|
—
|
|
0.00
|
%
|
|
45,105
|
|
2.36
|
%
|
|
1,000
|
|
8.00
|
%
|
|
—
|
|
0.00
|
%
|
|
46,105
|
|
2.48
|
%
|
|||||
Total
|
$
|
1,400
|
|
2.14
|
%
|
|
$
|
81,851
|
|
2.39
|
%
|
|
$
|
93,334
|
|
3.36
|
%
|
|
$
|
144,133
|
|
4.56
|
%
|
|
$
|
320,718
|
|
3.65
|
%
|
|
December 31, 2016
|
||||||||||||||||||||||||||||
|
Within One
Year
|
|
After One Year
but
Within Five Years
|
|
After Five Years but Within
Ten Years
|
|
After Ten
Years
|
|
Total
|
||||||||||||||||||||
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Amount
|
Yield
|
|
Total
|
Yield
|
|||||||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||||||||||||
Available for Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. government and agency securities
|
$
|
—
|
|
0.00
|
%
|
|
$
|
2,014
|
|
1.46
|
%
|
|
$
|
3,869
|
|
3.37
|
%
|
|
$
|
—
|
|
0.00
|
%
|
|
$
|
5,883
|
|
2.71
|
%
|
Municipal securities
|
2,738
|
|
1.76
|
%
|
|
27,216
|
|
2.50
|
%
|
|
83,682
|
|
3.15
|
%
|
|
128,865
|
|
4.91
|
%
|
|
242,501
|
|
4.00
|
%
|
|||||
Agency mortgage-backed pass-through securities
|
—
|
|
0.00
|
%
|
|
—
|
|
0.00
|
%
|
|
4,856
|
|
2.12
|
%
|
|
22,640
|
|
2.55
|
%
|
|
27,496
|
|
2.48
|
%
|
|||||
Corporate bonds and other
|
—
|
|
0.00
|
%
|
|
45,271
|
|
2.36
|
%
|
|
—
|
|
0.00
|
%
|
|
—
|
|
0.00
|
%
|
|
45,271
|
|
2.36
|
%
|
|||||
Total
|
$
|
2,738
|
|
1.76
|
%
|
|
$
|
74,501
|
|
2.39
|
%
|
|
$
|
92,407
|
|
3.11
|
%
|
|
$
|
151,505
|
|
4.56
|
%
|
|
$
|
321,151
|
|
3.61
|
%
|
|
As of March 31, 2017
|
||||||||||||||||||
|
1 year or less
|
|
More than 1
year but less
than 3 years
|
|
3 years or
more but less
than 5 years
|
|
5 years
or more
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Bank loan
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
569
|
|
|
$
|
569
|
|
Operating leases
|
2,025
|
|
|
1,708
|
|
|
1,735
|
|
|
4,331
|
|
|
9,799
|
|
|||||
Total
|
$
|
2,025
|
|
|
$
|
1,708
|
|
|
$
|
1,735
|
|
|
$
|
4,900
|
|
|
$
|
10,368
|
|
|
As of December 31, 2016
|
||||||||||||||||||
|
1 year or less
|
|
More than 1
year but less
than 3 years
|
|
3 years or
more but less
than 5 years
|
|
5 years
or more
|
|
Total
|
||||||||||
|
(Dollars in thousands)
|
||||||||||||||||||
Bank loan
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
569
|
|
|
$
|
569
|
|
Operating leases
|
2,654
|
|
|
1,820
|
|
|
2,087
|
|
|
4,513
|
|
|
11,074
|
|
|||||
Total
|
$
|
2,654
|
|
|
$
|
1,820
|
|
|
$
|
2,087
|
|
|
$
|
5,082
|
|
|
$
|
11,643
|
|
|
Actual Ratio
|
|
Minimum Required
For Capital Adequacy Purposes |
|
Minimum Required
Plus Capital Conservation Buffer |
|
To Be Categorized As
Well Capitalized Under Prompt Corrective Action Provisions |
ALLEGIANCE BANCSHARES, INC.
|
|
|
|
|
|
|
|
(Consolidated)
|
|
|
|
|
|
|
|
As of March 31, 2017
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets)
|
12.35%
|
|
8.00%
|
|
9.250%
|
|
N/A
|
Common equity Tier 1 capital (to risk weighted assets)
|
11.10%
|
|
4.50%
|
|
5.750%
|
|
N/A
|
Tier 1 capital (to risk weighted assets)
|
11.51%
|
|
6.00%
|
|
7.250%
|
|
N/A
|
Tier 1 capital (to average assets)
|
10.28%
|
|
4.00%
|
|
4.000%
|
|
N/A
|
|
|
|
|
|
|
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets)
|
12.57%
|
|
8.00%
|
|
8.625%
|
|
N/A
|
Common equity Tier 1 capital (to risk weighted assets)
|
11.30%
|
|
4.50%
|
|
5.125%
|
|
N/A
|
Tier 1 capital (to risk weighted assets)
|
11.73%
|
|
6.00%
|
|
6.625%
|
|
N/A
|
Tier 1 capital (to average assets)
|
10.35%
|
|
4.00%
|
|
4.000%
|
|
N/A
|
ALLEGIANCE BANK:
|
|
|
|
|
|
|
|
As of March 31, 2017
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets)
|
11.33%
|
|
8.00%
|
|
9.250%
|
|
10.00%
|
Common equity Tier 1 capital (to risk weighted assets)
|
10.50%
|
|
4.50%
|
|
5.750%
|
|
6.50%
|
Tier 1 capital (to risk weighted assets)
|
10.50%
|
|
6.00%
|
|
7.250%
|
|
8.00%
|
Tier 1 capital (to average assets)
|
9.37%
|
|
4.00%
|
|
4.000%
|
|
5.00%
|
|
|
|
|
|
|
|
|
As of December 31, 2016
|
|
|
|
|
|
|
|
Total capital (to risk weighted assets)
|
11.61%
|
|
8.00%
|
|
8.625%
|
|
10.00%
|
Common equity Tier 1 capital (to risk weighted assets)
|
10.77%
|
|
4.50%
|
|
5.125%
|
|
6.50%
|
Tier 1 capital (to risk weighted assets)
|
10.77%
|
|
6.00%
|
|
6.625%
|
|
8.00%
|
Tier 1 capital (to average assets)
|
9.50%
|
|
4.00%
|
|
4.000%
|
|
5.00%
|
Change in Interest
|
|
Percent Change in Net Interest Income
|
|
Percent Change in Economic Value of Equity
|
||||
Rates (Basis Points)
|
|
As of March 31, 2017
|
|
As of December 31, 2016
|
|
As of March 31, 2017
|
|
As of December 31, 2016
|
+300
|
|
(3.5)%
|
|
(3.3)%
|
|
(7.3)%
|
|
(7.4)%
|
+200
|
|
(2.3)%
|
|
(2.3)%
|
|
(4.5)%
|
|
(4.7)%
|
+100
|
|
(1.4)%
|
|
(1.4)%
|
|
(2.1)%
|
|
(2.3)%
|
Base
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
|
0.0%
|
-100
|
|
1.3%
|
|
1.8%
|
|
0.5%
|
|
1.1%
|
Exhibit
Number
|
Description
|
3.1
|
Amended and Restated Certificate of Formation of Allegiance Bancshares, Inc. (incorporated herein by reference to Exhibit 3.1 to the Company’s Registration Statement on Form S-1 (Registration No. 333-206536) (the “Registration Statement”))
|
3.2
|
Amended and Restated Bylaws of Allegiance Bancshares, Inc. (incorporated herein by reference to Exhibit 3.2 to the Registration Statement)
|
4.1
|
Specimen Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registration Statement)
|
10.1*
|
Allegiance Bancshares, Inc. Form of Non-Employee Director Restricted Stock Agreement
|
31.1*
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
|
31.2*
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended
|
32.1**
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2**
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101.INS*
|
XBRL Instance Document
|
101. SCH*
|
XBRL Taxonomy Extension Schema Document Exhibit
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed with this Quarterly Report on Form 10-Q.
|
**
|
Furnished with this Quarterly Report on Form 10-Q.
|
|
Allegiance Bancshares, Inc.
(Registrant)
|
|
|
Date: May 5, 2017
|
/s/ George Martinez
|
|
George Martinez
|
|
Chairman and Chief Executive Officer
|
|
|
Date: May 5, 2017
|
/s/ Paul P. Egge
|
|
Paul P. Egge
|
|
Chief Financial Officer
|
|
|
|
Number of Shares
|
|
|
|
|
on which
|
|
|
Date
|
|
Forfeiture Restrictions Expire
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Allegiance Bancshares, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 5, 2017
|
|
|
|
/s/ George Martinez
|
|
George Martinez
|
|
Chairman and Chief Executive Officer
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Allegiance Bancshares, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 5, 2017
|
|
|
|
/s/ Paul P. Egge
|
|
Paul P. Egge
|
|
Chief Financial Officer
|
|
/s/ George Martinez
|
|
George Martinez
|
|
Chairman and Chief Executive Officer
|
|
/s/ Paul P. Egge
|
|
Paul P. Egge
|
|
Chief Financial Officer
|
|