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REGULATORY CAPITAL MATTERS
 9 Months Ended
Sep. 30, 2017
Banking and Thrift [Abstract]  
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can cause regulators to initiate actions that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The final rules implementing Basel Committee on Banking Supervision's capital guideline for U.S. Banks (Basel III Rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Starting in January 2016, the implementation of the capital conservation buffer was effective for the Company starting at the 0.625% level and increasing 0.625% each year thereafter, until it reaches 2.5% on January 1, 2019. Management believes as of September 30, 2017 and December 31, 2016 the Company and the Bank met all capital adequacy requirements to which they were then subject.
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required.
The following is a summary of the Company’s and the Bank’s actual and required capital ratios at September 30, 2017 and December 31, 2016:
 
Actual
 
Minimum Required For Capital
Adequacy  Purposes
 
Minimum Required 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 September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital (to risk weighted assets)
$
292,639

 
12.04
%
 
$
194,407

 
8.00
%
 
$
224,783

 
9.250
%
 
N/A

 
N/A

Common Equity Tier 1 Capital (to risk weighted assets)
259,640

 
10.68
%
 
109,354

 
4.50
%
 
139,730

 
5.750
%
 
N/A

 
N/A

Tier I Capital (to risk weighted assets)
268,917

 
11.07
%
 
145,805

 
6.00
%
 
176,181

 
7.250
%
 
N/A

 
N/A

Tier I Capital (to average tangible assets)
268,917

 
9.90
%
 
108,673

 
4.00
%
 
108,673

 
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 September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital (to risk weighted assets)
$
289,178

 
11.90
%
 
$
194,316

 
8.00
%
 
$
224,678

 
9.250
%
 
$
242,895

 
10.00
%
Common Equity Tier 1 Capital (to risk weighted assets)
265,456

 
10.93
%
 
109,303

 
4.50
%
 
139,664

 
5.750
%
 
157,882

 
6.50
%
Tier I Capital (to risk weighted assets)
265,456

 
10.93
%
 
145,737

 
6.00
%
 
176,099

 
7.250
%
 
194,316

 
8.00
%
Tier I Capital (to average tangible assets)
265,456

 
9.77
%
 
108,630

 
4.00
%
 
108,630

 
4.000
%
 
135,788

 
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
%