8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): April 29, 2021

Allegiance Bancshares, Inc.

(Exact Name of Registrant as Specified in Charter)

Texas	001-37585	26-3564100
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

8847 West Sam Houston Parkway N., Suite 200, Houston, Texas 77040

(Address of Principal Executive Offices) (Zip Code)

(281) 894-3200

(Registrant's telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	ABTX	NASDAQ Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities

Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition

period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act.  ☐

Item 2.02. Results of Operations and Financial Condition.

On April 29, 2021, Allegiance Bancshares, Inc., the holding company of Allegiance Bank, issued a press release announcing its financial results for the first quarter 2021.  A copy of the press release, as well as a copy of the accompanying earnings presentation, are furnished as Exhibit 99.1 and Exhibit 99.2 hereto, respectively, and incorporated herein by reference.

As provided in General Instruction B.2 to Form 8-K, the information furnished in Item 2.02, Exhibit 99.1 and Exhibit 99.2 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and such information shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)           Exhibits. The following are furnished as exhibits to this Current Report on Form 8-K:

Exhibit Number	Description of Exhibit
99.1	Press Release issued by Allegiance Bancshares, Inc. dated April 29, 2021
99.2	First Quarter 2021 Earnings Presentation dated April 29, 2021
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Allegiance Bancshares, Inc.
Date: April 29, 2021	By:	/s/ Steven F. Retzloff
		Steven F. Retzloff
		Chief Executive Officer

EX-99.1

Exhibit 99.1

 

PRESS RELEASE

Allegiance Bancshares, Inc.

8847 West Sam Houston Parkway N., Suite 200

Houston, Texas 77040

ir@allegiancebank.com

ALLEGIANCE BANCSHARES, INC. REPORTS

FIRST QUARTER 2021 RECORD RESULTS

• Record net income and diluted earnings per share of $18.0 million and $0.89, respectively

• Funded in excess of $1.04 billion in loans over the last year within the Small Business Administration Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security Act (CARES Act)

• Deposit growth of 35.9% to $5.37 billion as of March 31, 2021 from $3.95 billion as of March 31, 2020, driven by $696.6 million, or 57.2%, growth in noninterest-bearing deposits

• Board declared quarterly dividend of $0.12 per share of common stock and authorized repurchases of up to 1 million shares

HOUSTON, April 29, 2021 - Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the holding company of Allegiance Bank (the "Bank"), today reported record net income of $18.0 million and diluted earnings per share of $0.89 for the first quarter 2021 compared to net income of $3.5 million and diluted earnings per share of $0.17 for the first quarter 2020.  The first quarter 2021 results were primarily driven by increased net interest income primarily due to lower funding costs and lower provision expense.

“Allegiance is off to a very productive start in 2021. We are proud to report record quarterly earnings results while continuing to maintain stable asset quality,” said Steve Retzloff, Allegiance’s Chief Executive Officer. “We reached record highs in terms of net income, diluted earnings per share, return on average assets and preserved a solid net interest margin all due to the successful execution of our core strategies,” continued Retzloff.

“These exceptional results highlight our team’s unparalleled and coordinated effort to assist our customers during the PPP process by funding over $1.04 billion of loans since the beginning of the pandemic. A high percentage of these loans were to businesses who were not previously customers and who experienced, first hand, the value of our high service culture.  We look forward to solidifying these relationships over the coming months. Our team is excited about the future of Allegiance and continues to believe that providing remarkable service to our customers and our community sets us apart as the Houston region’s premier community bank and will continue to drive future value,” concluded Retzloff.

First Quarter 2021 Results

Net interest income before the provision for credit losses in the first quarter 2021 increased $10.7 million, or 23.7%, to $55.7 million from $45.0 million for the first quarter 2020 and increased $796 thousand, or 1.4%, from $54.9 million in the fourth quarter 2020.  These increases were primarily due to changes in the volume and relative mix of the underlying assets and liabilities, the impact of PPP loans as well as lower costs on interest-bearing liabilities.  The net interest margin on a tax equivalent basis increased 4 basis points to 4.19% for the first quarter 2021 from 4.15% for the first quarter 2020 and increased 5 basis points from 4.14% for the fourth quarter 2020.

Noninterest income for the first quarter 2021 was $1.7 million, a decrease of $989 thousand, or 36.3%, compared to $2.7 million for the first quarter 2020 and decreased $283 thousand, or 14.0%, compared to $2.0 million for the fourth quarter 2020.  First quarter 2021 noninterest income reflected lower transactional fee income, significantly lower correspondent bank rebates, lower gains on sales of securities and higher losses on sales of other real estate when compared to first quarter 2020.  

Noninterest expense for the first quarter 2021 increased $2.5 million, or 7.8%, to $34.9 million from $32.4 million for the first quarter 2020 and increased $2.2 million, or 6.6%, compared to the fourth quarter 2020 primarily due to increases in salaries and benefits.

In the first quarter 2021, Allegiance’s efficiency ratio decreased to 60.85% compared to 68.13% for the first quarter 2020 and increased from 57.53% for the fourth quarter 2020. First quarter 2021 annualized returns on average assets, average equity and average tangible equity were

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1.18%, 9.59% and 14.03%, respectively, compared to 0.29%, 1.98% and 3.02%, respectively, for the firstquarter2020.  Annualized returns on average assets, average equity and average tangible equity for the fourthquarter 2020 were 1.05%, 8.38% and 12.32%, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 9.

Financial Condition

Total assets at March 31, 2021 increased $380.9 million, or 25.2% (annualized), to $6.43 billion compared to $6.05 billion at December 31, 2020 and increased $1.43 billion, or 28.6%, compared to $5.00 billion at March 31, 2020, primarily due to the origination of PPP loans and growth in the securities portfolio.

Total loans at March 31, 2021 increased $167.4 million, or 14.9% (annualized), to $4.66 billion compared to $4.49 billion at December 31, 2020, primarily due to the origination of $331.9 million of PPP loans, and increased $703.6 million, or 17.8%, compared to $3.96 billion at March 31, 2020. Core loans, which exclude the mortgage warehouse portfolio and PPP loans, increased $8.9 million, or 0.9% (annualized), to $3.93 billion at March 31, 2021 from $3.92 billion at December 31, 2020 and decreased $23.8 million, or 0.6%, from $3.95 billion at March 31, 2020.

Deposits at March 31, 2021 increased $385.7 million, or 30.9% (annualized), to $5.37 billion compared to $4.99 billion at December 31, 2020 and increased $1.42 billion, or 35.9%, compared to $3.95 billion at March 31, 2020.

Asset Quality

Nonperforming assets totaled $35.6 million, or 0.55% of total assets, at March 31, 2021, compared to $38.1 million, or 0.63% of total assets, at December 31, 2020 and $34.2 million, or 0.68% of total assets, at March 31, 2020. The allowance for credit losses on loans as a percentage of total loans was 1.13% at March 31, 2021 and 1.18% at December 31, 2020.

The provision for credit losses for the first quarter 2021 was $639 thousand compared to $4.4 million for the fourth quarter 2020 and $11.0 million for the first quarter 2020. The increased provision during 2020 reflected the uncertainty surrounding unemployment, the economic impact caused by COVID-19 and the economic effects related to the sustained lower crude oil prices.

First quarter 2021 net charge-offs were $345 thousand, or 0.03% (annualized) of average loans, a decrease from net charge-offs of $4.3 million, or 0.37% (annualized) of average loans, for the fourth quarter 2020 and $2.9 million, or 0.30% (annualized) of average loans, for the first quarter 2020.

The Company is carefully monitoring the hotel, restaurant and bar, and oil and gas portfolios, which it believes are at heightened risk due to the current economic environment. Loan balances in the hotel industry, excluding PPP loans, totaled $125.2 million, or 2.7% of total loans, at March 31, 2021, of which $6.2 million were on nonaccrual. At March 31, 2021, restaurant and bar industry loans, excluding PPP loans, totaled $116.2 million, or 2.5%, of total loans, of which $486 thousand were on nonaccrual. At March 31, 2021, the Company’s allowance for credit losses on loans allocated to its hotel portfolio was 3.5% of total hotel loans and its restaurant and bar portfolio was 1.3% of total restaurant and bar loans. The oil and gas portfolio, excluding PPP loans, totaled $72.5 million, or 1.6%, of total loans at March 31, 2021, of which $3.6 million were on nonaccrual. At March 31, 2021, the allowance for credit losses on loans allocated to the oil and gas loan portfolio was 3.4% of total oil and gas loans.

The Company granted initial principal and interest deferrals on outstanding loan balances to borrowers in connection with the COVID-19 relief provided by the CARES Act and subsequent deferrals upon request and after meeting certain conditions.  These deferrals were generally no more than 90 days in duration. As of March 31, 2021, 65 loans with outstanding loan balances of $62.1 million remained on deferral.

Dividend

The Board of Directors of Allegiance has declared a cash dividend of $0.12 per share to be paid on June 15, 2021 to all shareholders of record as of May 28, 2021. The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.

Share Repurchase Authorization

The Board of Directors of Allegiance approved a stock repurchase authorization, under which Allegiance may repurchase up to one million shares of its outstanding common stock at the discretion of management through April 30, 2022. Repurchases under this program may be made from time to time through open market purchases, privately negotiated transactions or such other manners as will comply with applicable laws and regulations. Allegiance’s previously announced share repurchase program recently expired on March 31, 2021.

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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 9 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 Thursday, April 29, 2021 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its first quarter 2021 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 3792638.  Alternatively, a simultaneous audio-only webcast may be accessed via the Investor Relations section of Allegiance’s website atwww.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, Event Calendar, Past Events.

Allegiance Bancshares, Inc.

As of March 31, 2021, Allegiance was a $6.43 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 small- to medium-sized businesses and individual customers in the Houston region. Allegiance’s 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.  As of March 31, 2021, Allegiance Bank operated 27 full-service banking locations in the Houston region, which we define as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur metropolitan statistical areas, with 26 bank offices in the Houston metropolitan area and one bank office in Beaumont, just outside of the Houston metropolitan area. Visit www.allegiancebank.comfor more information.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995

This release contains forward-looking statements within the meaning of the securities laws that are derived utilizing assumptions, present expectations, estimates and projections about Allegiance and its subsidiaries. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “continues,” “anticipates,” “intends,” “projects,” “estimates,” “potential,” “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 expected 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. Additionally, the impact of the COVID-19 pandemic is rapidly evolving and its future effects on Allegiance are difficult to predict. These and various other risk factors are discussed in Allegiance’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 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. Because of these uncertainties, readers should not place undue reliance on any forward-looking statement. Allegiance disclaims any 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.

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Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	2021			2020
	March 31			December 31			September 30			June 30			March 31
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	141,947		$	122,897		$	327,416		$	237,585		$	156,700
Interest-bearing deposits at other financial    institutions		482,383			299,869			19,732			28,815			18,189
Total cash and cash equivalents		624,330			422,766			347,148			266,400			174,889
Available for sale securities, at fair value		787,516			772,890			663,301			618,751			508,250
Loans held for investment		4,659,169			4,491,764			4,592,362			4,583,656			3,955,546
Less: allowance for credit losses on loans		(52,758	)		(53,173	)		(48,698	)		(47,642	)		(37,511	)
Loans, net		4,606,411			4,438,591			4,543,664			4,536,014			3,918,035
Accrued interest receivable		38,632			40,053			36,996			32,795			17,203
Premises and equipment, net		66,115			70,685			69,887			67,229			66,798
Other real estate owned		576			9,196			8,876			11,847			12,617
Federal Home Loan Bank stock		7,775			7,756			9,716			14,844			12,798
Bank owned life insurance		27,825			27,686			27,542			27,398			27,255
Goodwill		223,642			223,642			223,642			223,642			223,642
Core deposit intangibles, net		17,130			17,954			18,907			19,896			20,886
Other assets		31,038			18,909			18,072			18,065			20,056
Total assets	$	6,430,990		$	6,050,128		$	5,967,751		$	5,836,881		$	5,002,429
LIABILITIES AND SHAREHOLDERS’    EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	1,914,121		$	1,704,567		$	1,772,700		$	1,754,128		$	1,217,532
Interest-bearing
Demand		480,710			437,328			409,137			375,353			341,524
Money market and savings		1,617,823			1,499,938			1,483,370			1,270,437			1,110,631
Certificates and other time		1,361,535			1,346,649			1,252,159			1,300,793			1,283,887
Total interest-bearing deposits		3,460,068			3,283,915			3,144,666			2,946,583			2,736,042
Total deposits		5,374,189			4,988,482			4,917,366			4,700,711			3,953,574
Accrued interest payable		3,862			2,701			3,082			3,293			3,821
Borrowed funds		147,517			155,515			155,512			255,509			190,506
Subordinated debt		108,453			108,322			108,191			108,061			107,930
Other liabilities		36,432			36,439			30,547			33,164			40,005
Total liabilities		5,670,453			5,291,459			5,214,698			5,100,738			4,295,836
SHAREHOLDERS’ EQUITY:
Common stock		20,183			20,208			20,445			20,431			20,355
Capital surplus		505,307			508,794			516,151			515,045			513,894
Retained earnings		210,834			195,236			186,866			172,723			164,858
Accumulated other comprehensive    income		24,213			34,431			29,591			27,944			7,486
Total shareholders’ equity		760,537			758,669			753,053			736,143			706,593
TOTAL LIABILITIES AND    SHAREHOLDERS’ EQUITY	$	6,430,990		$	6,050,128		$	5,967,751		$	5,836,881		$	5,002,429

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Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended
	2021			2020
	March 31			December 31		September 30		June 30			March 31
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	57,991		$	58,496	$	56,418	$	56,421		$	54,624
Securities:
Taxable		2,402			2,203		2,095		1,842			2,087
Tax-exempt		2,394			2,316		2,280		2,169			546
Deposits in other financial       institutions		41			32		18		20			195
Total interest income		62,828			63,047		60,811		60,452			57,452
INTEREST EXPENSE:
Demand, money market and       savings deposits		1,484			1,621		1,657		1,729			4,364
Certificates and other time       deposits		3,665			4,507		5,239		5,845			6,084
Borrowed funds		539			557		558		562			506
Subordinated debt		1,442			1,460		1,448		1,469			1,473
Total interest expense		7,130			8,145		8,902		9,605			12,427
NET INTEREST INCOME		55,698			54,902		51,909		50,847			45,025
Provision for credit losses		639			4,368		1,347		10,669			10,990
Net interest income after provision    for credit losses		55,059			50,534		50,562		40,178			34,035
NONINTEREST INCOME:
Nonsufficient funds fees		83			100		75		60			169
Service charges on deposit       accounts		388			405		325		343			457
Gain on sale of securities		49			—		—		93			194
(Loss) gain on sales of other real       estate and repossessed assets		(176	)		—		117		(306	)		(69	)
Bank owned life insurance		139			144		144		143			151
Rebate from correspondent bank		132			196		98		89			493
Other		1,121			1,174		1,091		1,140			1,330
Total noninterest income		1,736			2,019		1,850		1,562			2,725
NONINTEREST EXPENSE:
Salaries and employee benefits		22,452			21,003		20,034		19,334			19,781
Net occupancy and equipment		2,390			2,079		2,057		1,926			1,907
Depreciation		1,034			1,019		946		885			866
Data processing and software       amortization		2,200			2,107		2,125		1,934			1,826
Professional fees		789			999		756		800			573
Regulatory assessments and       FDIC insurance		807			810		875		609			632
Core deposit intangibles       amortization		824			953		989		990			990
Communications		321			225		355		390			417
Advertising		298			347		327		370			521
Other real estate expense		113			382		2,017		114			2,649
Other		3,691			2,825		2,084		2,427			2,239
Total noninterest expense		34,919			32,749		32,565		29,779			32,401
INCOME BEFORE INCOME    TAXES		21,876			19,804		19,847		11,961			4,359
Provision for income taxes		3,866			3,863		3,677		2,054			843
NET INCOME	$	18,010		$	15,941	$	16,170	$	9,907		$	3,516
EARNINGS PER SHARE
Basic	$	0.89		$	0.78	$	0.79	$	0.49		$	0.17
Diluted	$	0.89		$	0.77	$	0.79	$	0.48		$	0.17

5

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended
	2021			2020
	March 31			December 31			September 30			June 30			March 31
	(Dollars and share amounts in thousands, except per share data)
Net income	$	18,010		$	15,941		$	16,170		$	9,907		$	3,516
Earnings per share, basic	$	0.89		$	0.78		$	0.79		$	0.49		$	0.17
Earnings per share, diluted	$	0.89		$	0.77		$	0.79		$	0.48		$	0.17
Dividends per share	$	0.12		$	0.10		$	0.10		$	0.10		$	0.10
Return on average assets(A)		1.18	%		1.05	%		1.09	%		0.71	%		0.29	%
Return on average equity(A)		9.59	%		8.38	%		8.59	%		5.51	%		1.98	%
Return on average tangible    equity(A)(B)		14.03	%		12.32	%		12.72	%		8.32	%		3.02	%
Net interest margin    (tax equivalent)(A)(C)		4.19	%		4.14	%		3.95	%		4.10	%		4.15	%
Efficiency ratio(D)		60.85	%		57.53	%		60.58	%		56.92	%		68.13	%
Capital Ratios
Allegiance Bancshares, Inc.    (Consolidated)
Equity to assets		11.83	%		12.54	%		12.62	%		12.61	%		14.12	%
Tangible equity to tangible    assets(B)		8.40	%		8.90	%		8.92	%		8.81	%		9.71	%
Estimated common equity      tier 1 capital		11.87	%		11.80	%		11.73	%		11.36	%		11.15	%
Estimated tier 1 risk-based      capital		12.10	%		12.04	%		11.96	%		11.60	%		11.38	%
Estimated total risk-based      capital		15.72	%		15.71	%		15.56	%		15.17	%		14.72	%
Estimated tier 1 leverage      capital		8.57	%		8.51	%		8.70	%		8.83	%		9.89	%
Allegiance Bank
Estimated common equity      tier 1 capital		13.17	%		13.32	%		13.25	%		12.84	%		12.58	%
Estimated tier 1 risk-based      capital		13.17	%		13.32	%		13.25	%		12.84	%		12.58	%
Estimated total risk-based      capital		15.37	%		15.55	%		15.41	%		14.97	%		14.48	%
Estimated tier 1 leverage      capital		9.33	%		9.41	%		9.64	%		9.77	%		10.94	%
Other Data
Weighted average shares:
Basic		20,140			20,396			20,439			20,414			20,411
Diluted		20,342			20,575			20,532			20,514			20,690
Period end shares    outstanding		20,183			20,208			20,445			20,431			20,355
Book value per share	$	37.68		$	37.54		$	36.83		$	36.03		$	34.71
Tangible book value per    share(B)	$	25.75		$	25.59		$	24.97		$	24.11		$	22.70

(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 9 of this Earnings Release.

(C) Net interest margin represents net interest income divided by average interest-earning assets.

(D) Represents total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for loan losses are not part of this calculation.

6

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended
	March 31, 2021								December 31, 2020								March 31, 2020
	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	$	4,571,045		$	57,991		5.15	%	$	4,569,210		$	58,496		5.09	%	$	3,933,291		$	54,624		5.59	%
Securities		789,188			4,796		2.46	%		701,233			4,519		2.56	%		388,721			2,633		2.72	%
Deposits in other financial    institutions and other		96,212			41		0.17	%		58,664			32		0.22	%		50,711			195		1.55	%
Total interest-earning assets		5,456,445		$	62,828		4.67	%		5,329,107		$	63,047		4.71	%		4,372,723		$	57,452		5.28	%
Allowance for credit losses    on loans		(53,370	)							(53,260	)							(28,718	)
Noninterest-earning assets		760,762								783,200								602,778
Total assets	$	6,163,837							$	6,059,047							$	4,946,783
Liabilities and    Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand    deposits	$	458,063		$	371		0.33	%	$	430,145		$	386		0.36	%	$	363,326		$	846		0.94	%
Money market and savings    deposits		1,539,127			1,113		0.29	%		1,513,816			1,235		0.32	%		1,168,541			3,518		1.21	%
Certificates and other time    deposits		1,332,663			3,665		1.12	%		1,284,181			4,507		1.40	%		1,193,427			6,084		2.05	%
Borrowed funds		154,927			539		1.41	%		157,687			557		1.41	%		140,999			506		1.44	%
Subordinated debt		108,387			1,442		5.40	%		108,259			1,460		5.37	%		107,865			1,473		5.49	%
Total interest-bearing          liabilities		3,593,167		$	7,130		0.80	%		3,494,088		$	8,145		0.93	%		2,974,158		$	12,427		1.68	%
Noninterest-Bearing    Liabilities:
Noninterest-bearing demand    deposits		1,767,740								1,766,826								1,225,888
Other liabilities		41,330								41,434								33,202
Total liabilities		5,402,237								5,302,348								4,233,248
Shareholders' equity		761,600								756,699								713,535
Total liabilities and          shareholders' equity	$	6,163,837							$	6,059,047							$	4,946,783
Net interest rate spread							3.87	%							3.78	%							3.60	%
Net interest income and margin				$	55,698		4.14	%				$	54,902		4.10	%				$	45,025		4.14	%
Net interest income and net    interest margin (tax equivalent)				$	56,317		4.19	%				$	55,477		4.14	%				$	45,152		4.15	%

7

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended
	2021			2020
	March 31			December 31			September 30			June 30			March 31
	(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial	$	664,792		$	667,079		$	650,634		$	651,430		$	702,267
Mortgage warehouse		—			—			—			—			1,051
Paycheck Protection Program (PPP)		728,424			569,901			710,234			695,772			—
Real estate:
Commercial real estate (including       multi-family residential)		2,018,853			1,999,877			1,971,228			1,956,116			1,951,080
Commercial real estate construction and       land development		386,637			367,213			376,877			386,865			378,987
1-4 family residential (including home equity)		726,228			737,605			716,565			703,513			704,212
Residential construction		119,528			127,522			148,056			171,656			177,025
Consumer and other		14,707			22,567			18,768			18,304			40,924
Total loans	$	4,659,169		$	4,491,764		$	4,592,362		$	4,583,656		$	3,955,546
Asset Quality:
Nonaccrual loans	$	35,051		$	28,893		$	37,928		$	33,223		$	21,621
Accruing loans 90 or more days past due		—			—			—			—			—
Total nonperforming loans		35,051			28,893			37,928			33,223			21,621
Other real estate		576			9,196			8,876			11,847			12,617
Other repossessed assets		—			—			—			—			—
Total nonperforming assets	$	35,627		$	38,089		$	46,804		$	45,070		$	34,238
Net charge-offs	$	345		$	4,287		$	291		$	538		$	2,917
Nonaccrual loans:
Commercial and industrial	$	14,059		$	10,747		$	13,171		$	12,578		$	8,669
Mortgage warehouse		—			—			—			—			—
Real estate:
Commercial real estate (including       multi-family residential)		13,455			10,081			15,849			16,127			7,024
Commercial real estate construction and       land development		1,000			3,011			3,085			53			1,958
1-4 family residential (including home equity)		5,736			4,525			4,263			3,434			2,845
Residential construction		—			—			876			898			982
Consumer and other		801			529			684			133			143
Total nonaccrual loans	$	35,051		$	28,893		$	37,928		$	33,223		$	21,621
Asset Quality Ratios:
Nonperforming assets to total assets		0.55	%		0.63	%		0.78	%		0.77	%		0.68	%
Nonperforming loans to total loans		0.75	%		0.64	%		0.83	%		0.72	%		0.55	%
Allowance for credit losses on loans to    nonperforming loans		150.52	%		184.03	%		128.40	%		143.40	%		173.49	%
Allowance for credit losses on loans to total loans		1.13	%		1.18	%		1.06	%		1.04	%		0.95	%
Net charge-offs to average loans (annualized)		0.03	%		0.37	%		0.03	%		0.05	%		0.30	%

8

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 and 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 share, return on average tangible equity and the ratio of tangible equity to tangible assets for internal planning and forecasting purposes. 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
	2021			2020
	March 31			December 31			September 30			June 30			March 31
	(Dollars and share amounts in thousands, except per share data)
Total shareholders' equity	$	760,537		$	758,669		$	753,053		$	736,143		$	706,593
Less:  Goodwill and core    deposit intangibles, net		240,772			241,596			242,549			243,538			244,528
Tangible shareholders’    equity	$	519,765		$	517,073		$	510,504		$	492,605		$	462,065
Shares outstanding at end of    period		20,183			20,208			20,445			20,431			20,355
Tangible book value per share	$	25.75		$	25.59		$	24.97		$	24.11		$	22.70
Net income	$	18,010		$	15,941		$	16,170		$	9,907		$	3,516
Average shareholders' equity	$	761,600		$	756,699		$	748,647		$	723,104		$	713,535
Less:  Average goodwill and    core deposit intangibles, net		241,166			242,043			243,015			244,010			245,007
Average tangible    shareholders’ equity	$	520,434		$	514,656		$	505,632		$	479,094		$	468,528
Return on average    tangible equity(A)		14.03	%		12.32	%		12.72	%		8.32	%		3.02	%
Total assets	$	6,430,990		$	6,050,128		$	5,967,751		$	5,836,881		$	5,002,429
Less: Goodwill and core    deposit intangibles, net		240,772			241,596			242,549			243,538			244,528
Tangible assets	$	6,190,218		$	5,808,532		$	5,725,202		$	5,593,343		$	4,757,901
Tangible equity to tangible    assets		8.40	%		8.90	%		8.92	%		8.81	%		9.71	%

(A) Interim periods annualized.

9

EX-99.2

Fixed Income Investor Presentation September 2019 Fixed Income Investor Presentation [Month] [Day], 2019 First Quarter 2021 Earnings Presentation cshares, Inc. Exhibit 99.2

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements within the meaning of the securities laws that are derived utilizing assumptions, present expectations, estimates and projections about Allegiance. These statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “continues”, “anticipates,” “intends,” “projects,” “estimates,” “potential”, “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. Forward-looking statements include information concerning Allegiance’s expected 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. Additionally, the impact of the COVID-19 pandemic is rapidly evolving and its future effects on Allegiance are difficult to predict. These and various other factors are discussed in Allegiance's Annual Report on Form 10-K for the fiscal year ended December 31, 2020 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 presentation 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. Because of these uncertainties, readers should not place undue reliance on any forward-looking statement. Allegiance disclaims any 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. GAAP Reconciliation of Non-GAAP Financial Measures We use certain non-GAAP financial measures to evaluate our performance. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods. Specifically, we review return on average tangible common equity, the ratio of tangible equity to tangible assets and adjusted net interest margin on a tax equivalent basis for internal planning and forecasting purposes. We have included in this presentation 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 we calculate these non-GAAP financial measures may differ from that of other companies reporting measures with similar names. A reconciliation of the non-GAAP financial measures is in the appendix. Safe Harbor Statement and Non-GAAP Financial Measures

Allegiance Bancshares, Inc. Overview Franchise Footprint Holding Company for Allegiance Bank; Headquartered in Houston, Texas Company Overview Providing full-service banking services for owner-operated businesses Operational History 27 full-service banking locations (at 3/31/21) 26 in the Houston-The Woodlands-Sugar Land MSA 1 in the Beaumont-Port Arthur MSA, just outside of Houston Since opening in 2007, we have completed three whole bank acquisitions and one branch transaction: 2019: LoweryBank branch acquisition with $45.0 million in loans and $16.0 million in deposits 2018: Post Oak Bank, N.A. (Post Oak Bancshares, Inc.) with $1.5 billion in total assets 2015: Enterprise Bank (F&M Bancshares, Inc.) with $569.7 million in total assets 2013: Independence Bank, N.A. with $222.1 million in total assets Financial Highlights ABTX Branch Locations (27) Galveston Houston Houston-The Woodlands-Sugar Land MSA Beaumont-Port Arthur MSA 10 10 45 45 Beaumont _____________________ Please refer to the non-GAAP reconciliation in the appendix Annualized as of 1Q 2021

Financial Highlights – 2021 Assets of $6.43 billion, loans of $4.66 billion, deposits of $5.37 billion and shareholder's equity of $760.5 million at March 31, 2021 Funded over $1.04 billion in PPP loans since the first quarter of 2020 Deposit growth of $1.42 billion, or 35.9%, from the first quarter 2020, driven by $696.6 million, or 57.2%, growth in noninterest-bearing deposits Balance Sheet Growth Record net income of $18.0 million for the first quarter 2021 compared to $15.9 million for the fourth quarter 2020 and $3.5 million for the first quarter 2020 Record diluted EPS of $0.89 translated into an annualized return on average assets and average tangible equity(1) of 1.18% and 14.03%, respectively First quarter 2021 earnings were impacted by: $1.5 million in nonrecurring asset write-downs primarily related to the Antoine bank office closure in January 2021 Loss on the sale of other real estate owned of $176 thousand; gain on sale of securities of $49 thousand Profitability Net Interest Margin Net interest income increased to $55.7 million for first quarter 2021 compared to $54.9 million for the fourth quarter 2020 and increased from $45.0 million for the first quarter 2020 Net interest margin on a tax equivalent basis increased to 4.19% for the first quarter 2021 from 4.14% for the fourth quarter 2020 and 4.15% for the first quarter 2020 Adjusted net interest margin(1) on a tax equivalent basis excludes the impact of acquisition accounting adjustments of $155 thousand and was 4.17% for the first quarter 2021 compared to 4.12% for the fourth quarter 2020 and 4.04% for the first quarter 2020 Recognitions and Awards Named as a finalist for Houston Business Journal’s second-annual Middle Market 50 awards for 2021. The List ranks the top 50 for-profit public and private mid-market companies based in Houston. _____________________ Please refer to the non-GAAP reconciliation in the appendix.

Total PPP Loan Composition _____________________ Includes classifications less than 2.0% of total composition. PPP Loan Success – Over $1.04 Billion Funded Tremendous support to our customers and non-customers SBA Preferred Lender, Ranked #3 in PPP lending in Houston Region Supported over 123,000 jobs Approximately 4,000 new customers from the PPP effort Customer retention program to retain our “new to bank” customers and expand “existing customer” relationships Forgiveness status as of March 31, 2021: Received applications for 4,103 loans totaling over $505 million Of these, 3,324 applications have been submitted to the SBA totaling over $433 million, with 2,973 approved and funds received over $364 million Net fees from PPP programs amortized over the life of the loan Net fees recognized in 2020 of $11.0 million Net fees recognized in the first quarter 2021 of $6.9 million Unamortized net fees of $22.0 million as of March 31, 2021

Deposit Market Share - Houston-The Woodlands-Sugar Land MSA _____________________ Source: S&P Global Intelligence as of June 30, 2020. As of June 30 of the year shown, on a pro forma basis reflecting any announced acquisition. (1) (1) (1)

Historical Balance Sheet Growth Total Loans Total Assets Total Equity Total Deposits (1) _____________________ Note: Dollars in millions. Includes $1.50 billion in assets acquired on October 1, 2018. Includes $1.16 billion of acquired loans at fair value on October 1, 2018. (4) (2) (4) (3) (5) Includes $1.29 billion of acquired deposits on October 1, 2018. Includes $45.0 million of loans acquired on February 1, 2019. Includes $16.0 million of deposits acquired on February 1, 2019.

Earnings Performance Net Interest Income and Net Interest Margin Net Income and Earnings per Share _____________________ Note: Dollars in millions, except per share numbers. Includes a one-time gain from sale of branches of $1.3 million (after-tax). Includes $1.8 million and $1.7 million of core system conversion and acquisition and merger-related expenses, respectively, and $3.1 million of acquisition accounting adjustments. Includes $9.6 million of acquisition accounting adjustments, $1.4 million of pre-tax severance expense and a $1.1 million FDIC Small Bank Assessment Credit. (1) (2) (3) Includes $3.1 million of acquisition accounting adjustments; Adjusted net interest margin (tax equivalent) adjusted for acquisition accounting adjustments was 4.17%. Please refer to the non-GAAP reconciliation in the appendix. Includes $9.6 million of acquisition accounting adjustments; Adjusted net interest margin (tax equivalent) adjusted for acquisition accounting adjustments was 4.00%. Please refer to the non-GAAP reconciliation in the appendix. Annualized for the quarter ending March 31 for each respective year. (4) (5) 5 yr CAGR: Net Income 30.3%, EPS 11.6% (6) (6)

Return on Average Tangible Common Equity(1) Return on Average Assets Noninterest Expense to Average Assets Efficiency Ratio(7) _____________________ Please refer to the non-GAAP reconciliation in the appendix. Annualized for the quarter ending March 31 for each respective year. Includes a one-time gain from sale of branches of $1.3 million (after-tax). Includes $1.8 million and $1.7 million of core system conversion and merger-related expenses, respectively. Includes $3.1 million of acquisition accounting adjustments. Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income Includes $9.6 million of acquisition accounting adjustments, $1.3 million of acquisition and merger related expenses, $1.4 million of pre-tax severance expense, $1.1 million FDIC Small Bank Assessment Credit, $1.5 million of gain on sales of securities offset by $572 thousand of prepayment penalties and $376 thousand of SBIC income Represents total noninterest expense divided by the sum of net interest income plus noninterest income, excluding net gains and losses on the sale of loans, securities and assets. Additionally, taxes and provision for loan losses are not part of this calculation. (3) (4)(5) (6) (6) (6) (4)(5) (4) (3) Earnings Performance, continued (2) (2) (2) (2) (2) (2)

Yields and Cost Analysis Net Interest Margin(2) Loan Portfolio Reported Yields and Total Deposit Costs _____________________ Adjusted net interest margin excludes acquisition accounting adjustments. Please refer to the non-GAAP reconciliation in the appendix. Annualized for each respective quarter (1) (2) (2)

Common Equity Tier 1 Ratio Tangible Equity / Tangible Assets(1) Total Risk-Based Ratio Tier 1 Risk-Based Ratio Capital Position _____________________ Please refer to the non-GAAP reconciliation in the appendix.

Deposit Composition and Growth Deposit Growth Trend Deposit Composition _____________________ Note: Dollars in millions. As of the quarter ended March 31, 2021.

Total Loan Portfolio Composition 54.0% of CRE is Owner-Occupied CRE (incl. multi-family) by Property Type CRE Construction by Property Type _____________________ Note: Dollars in millions, unless otherwise noted. As of the quarter ended March 31, 2021. Includes classifications less than 2.0% of total composition. Loan Portfolio Composition

Loan Deferral Composition as of March 31, 2021 _____________________ Note: Dollars in thousands.

Allowance / Total Loans Allowance / Nonperforming Loans Net Charge-offs / Average Loans(1) Nonperforming Loans / Total Loans Strong Asset Quality Annualized for the quarter ending March 31, 2021.

Our management uses certain non-GAAP financial measures in its analysis of our performance: “Tangible Shareholders’ Equity” is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. Tangible shareholders’ equity is defined as total shareholders’ equity reduced by goodwill and core deposit intangibles, net of accumulated amortization. This measure is important to investors interested in changes from period to period in shareholders’ equity, exclusive of changes in intangible assets. For tangible shareholders’ equity, the most directly comparable financial measure calculated in accordance with GAAP is total shareholders’ equity. Goodwill and other intangible assets have the effect of increasing total shareholders’ equity while not increasing our tangible shareholders’ equity. “Tangible Equity to Tangible Assets” is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. Tangible equity to tangible assets is defined as total shareholders’ equity reduced by goodwill and core deposit intangibles, net of accumulated amortization, divided by tangible assets, which are total assets reduced by goodwill and core deposit intangibles, net of accumulated amortization. This measure is important to investors interested in changes from period to period in equity and total assets, each exclusive of changes in intangible assets. For tangible equity to tangible assets, the most directly comparable financial measure calculated in accordance with GAAP is total shareholders’ equity to total assets. Goodwill and other intangible assets have the effect of increasing both total shareholders’ equity and assets while not increasing our tangible common equity or tangible assets. Appendix: Non-GAAP Reconciliation _____________________ Note: Dollars in thousands. Annualized for each respective quarter.

Non-GAAP Reconciliation, continued “Adjusted Net Interest Margin (TE)” is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. Adjusted net interest margin is defined as net interest income, net of related acquisition accounting adjustments, divided average earnings assets. This measure is important to investors interested in changes from period to period in net interest income, exclusive of the impact from related acquisition accounting adjustments. For adjusted net interest margin, the most directly comparable financial measure calculated in accordance with GAAP is net interest margin. _____________________ Note: Dollars in thousands. Annualized for each respective quarter.

XML

Document And Entity Information	Apr. 29, 2021
Cover [Abstract]
Entity Registrant Name	Allegiance Bancshares, Inc.
Document Type	8-K
Amendment Flag	false
Entity Central Index Key	0001642081
Document Period End Date	Apr. 29, 2021
Entity Emerging Growth Company	false
Entity File Number	001-37585
Entity Incorporation, State or Country Code	TX
Entity Tax Identification Number	26-3564100
Entity Address, Address Line One	8847 West Sam Houston Parkway N.
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77040
City Area Code	281
Local Phone Number	894-3200
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $1.00 per share
Trading Symbol	ABTX
Security Exchange Name	NASDAQ