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

STRONG RESULTS FOR THE THIRD QUARTER 2021

•Net income and diluted earnings per share of $19.1 million and $0.93 for the third quarter 2021, respectively, and $60.0 million and $2.95 for the nine months ended September 30, 2021, respectively

•Deposit growth of 15.2% to $5.67 billion as of September 30, 2021 from $4.92 billion as of September 30, 2020, driven primarily by $435.5 million, or 13.8%, growth in interest-bearing deposits and $314.0 million, or 17.7%, growth in noninterest-bearing deposits

•Core loans of $4.00 billion, which exclude PPP loans, as of September 30, 2021 increased $37.9 million, or 3.8% (annualized), compared to June 30, 2021 and $117.3 million, or 3.0%, from $3.88 billion at September 30, 2020

•Board declared quarterly dividend of $0.12 per share of common stock

HOUSTON, October 28, 2021 - Allegiance Bancshares, Inc. (NASDAQ: ABTX) (Allegiance), the holding company of Allegiance Bank (the "Bank"), today reported record net income of $19.1 million and diluted earnings per share of $0.93 for the third quarter 2021 compared to net income of $16.2 million and diluted earnings per share of $0.79 for the third quarter 2020. Net income for the nine months ended September 30, 2021 was $60.0 million, or $2.95 per diluted share, compared to $29.6 million, or $1.44 per diluted share, for the nine months ended September 30, 2020. The third quarter ended September 30, 2021 results were driven by increased net interest income and an increased provision for credit losses compared to the third quarter 2020. The nine months ended September 30, 2021 results were primarily due to a lower provision for credit losses and increased net interest income driven by lower funding costs compared to the nine months ended September 30, 2020.

“This quarter was a period of outstanding focus and execution by our bankers. We continued to experience growth as we saw opportunities to grow deposit and loan volumes even though the loan market remains very competitive,” said Steve Retzloff, Allegiance’s Chief Executive Officer. “We are very pleased with our solid third quarter operating metrics and credit performance,” commented Retzloff.

“I could not be more proud of our team as I look back on a very successful 2021 so far. Their hard work has been instrumental to our growth as we welcomed and retained a significant number of our PPP customers, evidence of our ongoing dedication to customer service and the strong value proposition we offer our customers. We believe our core strength is the unwavering commitment to service that we provide to our customers and communities that consistently yields an outstanding customer experience. As we look to the future, we feel very well-positioned to execute our business model and seize the opportunity to gain market share,” concluded Retzloff.

Third Quarter 2021 Results

Net interest income before the provision for credit losses in the third quarter 2021 increased $6.3 million, or 12.1%, to $58.2 million from $51.9 million for the third quarter 2020 and increased $1.6 million, or 2.8%, from $56.6 million for the second quarter 2021.These increases were primarily due to changes in the volume and relative mix of the underlying assets and liabilities, the impact of loans within the Small Business Administration Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security Act (CARES Act) as well as lower costs on interest-bearing liabilities. The net interest margin on a tax equivalent basis decreased 5 basis points to 3.90% for the third quarter 2021 from 3.95% for the third quarter 2020 and decreased 12 basis points from 4.02% for the second quarter 2021. The decreases in the margin were primarily due to the decrease in the average yield on interest-earning assets, driven by the increase in cash and securities, partially offset by the decrease in funding costs.

Noninterest income for the third quarter 2021 was $2.1 million, an increase of $249 thousand, or 13.5%, compared to $1.9 million for the third quarter 2020 and decreased $174 thousand, or 7.7%, compared to $2.3 million for the second quarter 2021. Third quarter 2021 noninterest income reflected higher transactional fee income when compared to the third quarter 2020 and lower correspondent bank rebates, included in other noninterest income, than the second quarter 2021.

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Noninterest expense for the third quarter 2021 increased $1.7 million, or 5.3%, to $34.3 million from $32.6 million for the third quarter 2020 and increased $701 thousand, or 2.1%, compared to the second quarter of 2021. The increase over the prior year was primarily due to increases in salaries and benefits, as a result of increased performance-based bonus and profit sharing accruals, partially offset by decreased other real estate expenses as $1.9 million of other real estate write-downs were recorded in the third quarter 2020.

In the third quarter 2021, Allegiance’s efficiency ratio decreased to 56.91% compared to 60.58% for the third quarter 2020 and decreased from 57.07% for the second quarter 2021. Third quarter 2021 annualized returns on average assets, average equity and average tangible equity were 1.14%, 9.45% and 13.49%, respectively, compared to 1.09%, 8.59% and 12.72% for the third quarter 2020. Annualized returns on average assets, average equity and average tangible equity for the second quarter 2021 were 1.42%, 11.87% and 17.20%, respectively. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 10.  

Nine Months Ended September 30, 2021 Results

Net interest income before provision for credit losses for the nine months ended September 30, 2021 increased $22.7 million, or 15.3%, to $170.5 million from $147.8 million for the nine months ended September 30, 2020 primarily due to lower costs related to interest-bearing liabilities as well as an $825.4 million, or 16.8%, increase in average interest-earning assets over the prior year including the impact of PPP loans. The net interest margin on a tax equivalent basis decreased 3 basis points to 4.03% for the nine months ended September 30, 2021 from 4.06% for the nine months ended September 30, 2020. The decrease in the margin over the prior year was primarily due to the decrease in the average yield on interest-earning assets partially offset by decreased funding costs.

Noninterest income for the nine months ended September 30, 2021 was $6.1 million, a decrease of $29 thousand, or 0.5%, compared to $6.1 million for the nine months ended September 30, 2020 due primarily to lower correspondent bank rebates and gains on the sale of securities partially offset by increased debit card and ATM card income.

Noninterest expense for the nine months ended September 30, 2021 increased $8.1 million, or 8.5%, to $102.8 million from $94.7 million for the nine months ended September 30, 2020. The increase in noninterest expense over the nine months ended September 30, 2020 was primarily due to increased performance-based bonus and profit sharing accruals along with the reduced amount of deferred PPP loan origination costs, increased other expenses and the write-down of assets related to the closure of a bank office partially offset by lower other real estate expenses as $4.1 million of other real estate write-downs were recorded during the prior year 2020.

Allegiance’s efficiency ratio decreased from 61.67% for the nine months ended September 30, 2020 to 58.24% for the nine months ended September 30, 2021. For the nine months ended September 30, 2021, returns on average assets, average equity and average tangible equity were 1.25%, 10.30% and 14.89%, respectively, compared to 0.72%, 5.43% and 8.16%, respectively, for the nine months ended September 30, 2020. Return on average tangible equity is a non-GAAP measure. Please refer to the non-GAAP reconciliation on page 10.

Financial Condition

Total assets at September 30, 2021 increased $792.0 million, or 13.3%, to $6.76 billion compared to $5.97 billion at September 30, 2020 and increased $251.1 million, or 15.4% (annualized), compared to $6.51 billion at June 30, 2021, primarily due to increased liquidity, growth in the securities portfolio and the origination of core loans partially offset by paydowns of PPP loans.

Total loans at September 30, 2021 decreased $302.9 million, or 6.6%, to $4.29 billion compared to $4.59 billion at September 30, 2020 and decreased $171.3 million, or 15.4% (annualized), compared to $4.46 billion at June 30, 2021, primarily due to paydowns on PPP loans. Core loans, which exclude PPP loans, increased $117.3 million, or 3.0%, to $4.00 billion at September 30, 2021 from $3.88 billion at September 30, 2020 and increased $37.9 million, or 3.8% (annualized), from $3.96 billion at June 30, 2021.

Deposits at September 30, 2021 increased $749.5 million, or 15.2%, to $5.67 billion compared to $4.92 billion at September 30, 2020 and increased $233.5 million, or 17.2% (annualized), compared to $5.43 billion at June 30, 2021.

Asset Quality

Nonperforming assets totaled $29.8 million, or 0.44%, of total assets, at September 30, 2021 compared to $46.8 million, or 0.78%, of total assets, at September 30, 2020 and $38.0 million, or 0.58%, of total assets at June 30, 2021. The allowance for credit losses on loans as a percentage of total loans was 1.18% at September 30, 2021, 1.06% at September 30, 2020 and 1.11% at June 30, 2021.

The provision for credit losses for the third quarter 2021 was $2.3 million, an increase of $1.0 million, compared to $1.3 million for the third quarter 2020 and a recapture of provision for credit losses of $2.7 million for the second quarter 2021, reflective of the current uncertainty surrounding the economic impact caused by COVID-19 compared to the prior quarter where there were improvements in economic factors.

Third quarter 2021 net charge-offs were $450 thousand, or 0.04% (annualized) of average loans, an increase from net charge-offs of $291 thousand, or 0.03% (annualized) of average loans, for the third quarter 2020 and $162 thousand, or 0.01% (annualized) of average loans, for the second quarter 2021.

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Dividend

The Board of Directors of Allegiance declared a cash dividend on October 27, 2021 of $0.12 per share to be paid on December 15, 2021 to all shareholders of record as of November 30, 2021. The amount and timing of any future dividend payments to shareholders will be subject to the discretion of Allegiance’s Board of Directors.

GAAP Reconciliation of Non-GAAP Financial Measures

Allegiance’s management uses certain non-GAAP financial measures to evaluate its performance. Please refer to the GAAP Reconciliation and Management’s Explanation of Non-GAAP Financial Measures on page 10 of this earnings release for a reconciliation of these non-GAAP financial measures.

Conference Call

As previously announced, Allegiance’s management team will host a conference call on Thursday, October 28, 2021 at 9:00 a.m. Central Time (10:00 a.m. Eastern Time) to discuss its third quarter 2021 results. Individuals and investment professionals may participate in the call by dialing (877) 279-2520. The conference ID number is 6951679. Alternatively, a simultaneous audio-only webcast may be accessed via the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under Upcoming Events. If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Allegiance’s website at www.allegiancebank.com, under News and Events, Event Calendar, Past Events.

Allegiance Bancshares, Inc.

As of September 30, 2021, Allegiance was a $6.76 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 September 30, 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.com for 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 continues to evolve 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
	September 30		June 30		March 31		December 31		September 30
	(Dollars in thousands)
ASSETS
Cash and due from banks	$	23,903	$	146,397	$	141,947	$	122,897	$	327,416
Interest-bearing deposits at other financial     institutions	879,858		564,888		482,383		299,869		19,732
Total cash and cash equivalents	903,761		711,285		624,330		422,766		347,148
Available for sale securities, at fair value	1,211,476		977,282		787,516		772,890		663,301
Loans held for investment	4,289,469		4,460,743		4,659,169		4,491,764		4,592,362
Less: allowance for credit losses on loans	(50,491)		(49,586)		(52,758)		(53,173)		(48,698)
Loans, net	4,238,978		4,411,157		4,606,411		4,438,591		4,543,664
Accrued interest receivable	33,523		37,075		38,632		40,053		36,996
Premises and equipment, net	65,140		65,442		66,115		70,685		69,887
Other real estate owned	1,397		1,397		576		9,196		8,876
Federal Home Loan Bank stock	8,326		8,234		7,775		7,756		9,716
Bank owned life insurance	28,101		27,976		27,825		27,686		27,542
Goodwill	223,642		223,642		223,642		223,642		223,642
Core deposit intangibles, net	15,482		16,306		17,130		17,954		18,907
Other assets	29,935		28,871		31,038		18,909		18,072
Total assets	$	6,759,761	$	6,508,667	$	6,430,990	$	6,050,128	$	5,967,751
LIABILITIES AND SHAREHOLDERS’     EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	2,086,683	$	1,973,042	$	1,914,121	$	1,704,567	$	1,772,700
Interest-bearing
Demand	594,959		553,874		480,710		437,328		409,137
Money market and savings	1,604,222		1,556,920		1,617,823		1,499,938		1,483,370
Certificates and other time	1,381,014		1,349,522		1,361,535		1,346,649		1,252,159
Total interest-bearing deposits	3,580,195		3,460,316		3,460,068		3,283,915		3,144,666
Total deposits	5,666,878		5,433,358		5,374,189		4,988,482		4,917,366
Accrued interest payable	3,296		1,940		3,862		2,701		3,082
Borrowed funds	139,954		139,951		147,517		155,515		155,512
Subordinated debt	108,715		108,584		108,453		108,322		108,191
Other liabilities	42,326		35,684		36,432		36,439		30,547
Total liabilities	5,961,169		5,719,517		5,670,453		5,291,459		5,214,698
SHAREHOLDERS’ EQUITY:
Common stock	20,218		20,213		20,183		20,208		20,445
Capital surplus	507,948		506,810		505,307		508,794		516,151
Retained earnings	247,966		231,333		210,834		195,236		186,866
Accumulated other comprehensive income	22,460		30,794		24,213		34,431		29,591
Total shareholders’ equity	798,592		789,150		760,537		758,669		753,053
TOTAL LIABILITIES AND     SHAREHOLDERS’ EQUITY	$	6,759,761	$	6,508,667	$	6,430,990	$	6,050,128	$	5,967,751

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Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended										Year-to-Date
	2021						2020				2021		2020
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
	(Dollars in thousands, except per share data)
INTEREST INCOME:
Loans, including fees	$	58,176	$	57,691	$	57,991	$	58,496	$	56,418	$	173,858	$	167,463
Securities:
Taxable	2,998		2,556		2,402		2,203		2,095		7,956		6,024
Tax-exempt	2,498		2,491		2,394		2,316		2,280		7,383		4,995
Deposits in other financial     institutions	221		94		41		32		18		356		233
Total interest income	63,893		62,832		62,828		63,047		60,811		189,553		178,715
INTEREST EXPENSE:
Demand, money market and     savings deposits	1,267		1,337		1,484		1,621		1,657		4,088		7,750
Certificates and other time     deposits	2,583		2,989		3,665		4,507		5,239		9,237		17,168
Borrowed funds	436		469		539		557		558		1,444		1,626
Subordinated debt	1,441		1,441		1,442		1,460		1,448		4,324		4,390
Total interest expense	5,727		6,236		7,130		8,145		8,902		19,093		30,934
NET INTEREST INCOME	58,166		56,596		55,698		54,902		51,909		170,460		147,781
Provision for (recapture of) credit     losses	2,295		(2,679)		639		4,368		1,347		255		23,006
Net interest income after provision     for credit losses	55,871		59,275		55,059		50,534		50,562		170,205		124,775
NONINTEREST INCOME:
Nonsufficient funds fees	131		94		83		100		75		308		304
Service charges on deposit     accounts	425		382		388		405		325		1,195		1,125
Gain on sale of securities	—		—		49		—		—		49		287
(Loss) gain on sales of other real     estate and repossessed assets	—		—		(176)		—		117		(176)		(258)
Bank owned life insurance	125		151		139		144		144		415		438
Debit card and ATM card income	771		761		630		637		574		2,162		1,568
Other	647		885		623		733		615		2,155		2,673
Total noninterest income	2,099		2,273		1,736		2,019		1,850		6,108		6,137
NONINTEREST EXPENSE:
Salaries and employee benefits	22,335		22,472		22,452		21,003		20,034		67,259		59,149
Net occupancy and equipment	2,335		2,225		2,390		2,079		2,057		6,950		5,890
Depreciation	1,060		1,057		1,034		1,019		946		3,151		2,697
Data processing and software     amortization	2,222		2,176		2,200		2,107		2,125		6,598		5,885
Professional fees	1,223		608		789		999		756		2,620		2,129
Regulatory assessments and     FDIC insurance	883		768		807		810		875		2,458		2,116
Core deposit intangibles     amortization	824		824		824		953		989		2,472		2,969
Communications	358		332		321		225		355		1,011		1,162
Advertising	481		432		298		347		327		1,211		1,218
Other real estate expense	137		229		113		382		2,017		479		4,780
Other	2,438		2,472		3,691		2,825		2,084		8,601		6,750
Total noninterest expense	34,296		33,595		34,919		32,749		32,565		102,810		94,745
INCOME BEFORE INCOME     TAXES	23,674		27,953		21,876		19,804		19,847		73,503		36,167
Provision for income taxes	4,614		5,028		3,866		3,863		3,677		13,508		6,574
NET INCOME	$	19,060	$	22,925	$	18,010	$	15,941	$	16,170	$	59,995	$	29,593
EARNINGS PER SHARE
Basic	$	0.94	$	1.13	$	0.89	$	0.78	$	0.79	$	2.97	$	1.45
Diluted	$	0.93	$	1.12	$	0.89	$	0.77	$	0.79	$	2.95	$	1.44

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Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended															Year-to-Date
	2021									2020						2021			2020
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
	(Dollars and share amounts in thousands, except per share data)
Net income	$	19,060		$	22,925		$	18,010		$	15,941		$	16,170		$	59,995		$	29,593
Earnings per share, basic	$	0.94		$	1.13		$	0.89		$	0.78		$	0.79		$	2.97		$	1.45
Earnings per share, diluted	$	0.93		$	1.12		$	0.89		$	0.77		$	0.79		$	2.95		$	1.44
Dividends per share	$	0.12		$	0.12		$	0.12		$	0.10		$	0.10		$	0.36		$	0.30
Return on average assets(A)	1.14		%	1.42		%	1.18		%	1.05		%	1.09		%	1.25		%	0.72		%
Return on average equity(A)	9.45		%	11.87		%	9.59		%	8.38		%	8.59		%	10.30		%	5.43		%
Return on average tangible     equity(A)(B)	13.49		%	17.20		%	14.03		%	12.32		%	12.72		%	14.89		%	8.16		%
Net interest margin     (tax equivalent)(A)(C)	3.90		%	4.02		%	4.19		%	4.14		%	3.95		%	4.03		%	4.06		%
Efficiency ratio(D)	56.91		%	57.07		%	60.85		%	57.53		%	60.58		%	58.24		%	61.67		%
Capital Ratios
Allegiance Bancshares, Inc.(Consolidated)
Equity to assets	11.81		%	12.12		%	11.83		%	12.54		%	12.62		%	11.81		%	12.62		%
Tangible equity to tangible     assets(B)	8.58		%	8.76		%	8.40		%	8.90		%	8.92		%	8.58		%	8.92		%
Estimated common equity     tier 1 capital	12.37		%	12.18		%	11.87		%	11.80		%	11.73		%	12.37		%	11.73		%
Estimated tier 1 risk-based     capital	12.60		%	12.41		%	12.10		%	12.04		%	11.96		%	12.60		%	11.96		%
Estimated total risk-based     capital	16.13		%	15.98		%	15.72		%	15.71		%	15.56		%	16.13		%	15.56		%
Estimated tier 1 leverage     capital	8.76		%	8.56		%	8.57		%	8.51		%	8.70		%	8.76		%	8.70		%
Allegiance Bank
Estimated common equity     tier 1 capital	12.81		%	13.03		%	13.17		%	13.32		%	13.25		%	12.81		%	13.25		%
Estimated tier 1 risk-based     capital	12.81		%	13.03		%	13.17		%	13.32		%	13.25		%	12.81		%	13.25		%
Estimated total risk-based     capital	14.98		%	15.22		%	15.37		%	15.55		%	15.41		%	14.98		%	15.41		%
Estimated tier 1 leverage     capital	8.91		%	8.99		%	9.33		%	9.41		%	9.64		%	8.91		%	9.64		%
Other Data
Weighted average shares:
Basic	20,221			20,203			20,140			20,396			20,439			20,188			20,421
Diluted	20,411			20,386			20,342			20,575			20,532			20,369			20,551
Period end shares     outstanding	20,218			20,213			20,183			20,208			20,445			20,218			20,445
Book value per share	$	39.50		$	39.04		$	37.68		$	37.54		$	36.83		$	39.50		$	36.83
Tangible book value per     share(B)	$	27.67		$	27.17		$	25.75		$	25.59		$	24.97		$	27.67		$	24.97

(A)Interim periods annualized.

(B)Refer to the calculation of these non-GAAP financial measures and a reconciliation to their most directly comparable GAAP financial measures on page 10 of this Earnings Release.

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

(D)Represents 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 (recapture of) loan losses are not part of this calculation.

6

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended
	September 30, 2021						June 30, 2021						September 30, 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	$	4,336,443	$	58,176	5.32	%	$	4,543,142	$	57,691	5.09	%	$	4,594,333	$	56,418	4.89	%
Securities	1,070,851		5,496		2.04	%	876,099		5,047		2.31	%	667,008		4,375		2.61	%
Deposits in other financial     institutions and other	588,859		221		0.15	%	294,188		94		0.13	%	20,176		18		0.35	%
Total interest-earning assets	5,996,153		$	63,893	4.23	%	5,713,429		$	62,832	4.41	%	5,281,517		$	60,811	4.58	%
Allowance for credit losses on loans	(49,381)						(52,699)						(47,593)
Noninterest-earning assets	680,682						835,801						679,750
Total assets	$	6,627,454					$	6,496,531					$	5,913,674
Liabilities and     Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand     deposits	$	576,144	$	324	0.22	%	$	534,314	$	326	0.24	%	$	394,612	$	392	0.40	%
Money market and savings     deposits	1,565,965		943		0.24	%	1,561,987		1,011		0.26	%	1,409,969		1,265		0.36	%
Certificates and other time     deposits	1,363,121		2,583		0.75	%	1,365,881		2,989		0.88	%	1,291,536		5,239		1.61	%
Borrowed funds	139,844		436		1.24	%	144,126		469		1.31	%	171,804		558		1.29	%
Subordinated debt	108,652		1,441		5.26	%	108,523		1,441		5.33	%	108,130		1,448		5.33	%
Total interest-bearing     liabilities	3,753,726		$	5,727	0.61	%	3,714,831		$	6,236	0.67	%	3,376,051		$	8,902	1.05	%
Noninterest-Bearing     Liabilities:
Noninterest-bearing demand     deposits	2,031,399						1,968,714						1,752,404
Other liabilities	42,183						38,183						36,572
Total liabilities	5,827,308						5,721,728						5,165,027
Shareholders' equity	800,146						774,803						748,647
Total liabilities and     shareholders' equity	$	6,627,454					$	6,496,531					$	5,913,674
Net interest rate spread					3.62	%					3.74	%					3.53	%
Net interest income and margin			$	58,166	3.85	%			$	56,596	3.97	%			$	51,909	3.91	%
Net interest income and net     interest margin (tax equivalent)			$	58,873	3.90	%			$	57,287	4.02	%			$	52,446	3.95	%

7

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Nine Months Ended September 30,
	2021						2020
	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	$	4,482,684	$	173,858	5.19	%	$	4,318,564	$	167,463	5.18	%
Securities	913,078		15,339		2.25	%	550,405		11,019		2.67	%
Deposits in other financial institutions	328,238		356		0.15	%	29,652		233		1.05	%
Total interest-earning assets	5,724,000		$	189,553	4.43	%	4,898,621		$	178,715	4.87	%
Allowance for credit losses     on loans	(51,802)						(39,245)
Noninterest-earning assets	758,774						639,606
Total assets	$	6,430,972					$	5,498,982
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-bearing demand deposits	$	523,272	$	1,021	0.26	%	$	370,485	$	1,659	0.60	%
Money market and savings deposits	1,555,791		3,067		0.26	%	1,249,832		6,091		0.65	%
Certificates and other time deposits	1,354,000		9,237		0.91	%	1,262,674		17,168		1.82	%
Borrowed funds	146,244		1,444		1.32	%	210,902		1,626		1.03	%
Subordinated debt	108,522		4,324		5.33	%	107,998		4,390		5.43	%
Total interest-bearing liabilities	3,687,829		$	19,093	0.69	%	3,201,891		30,934		1.29	%
Noninterest-Bearing Liabilities:
Noninterest-bearing demand deposits	1,923,584						1,535,107
Other liabilities	40,568						33,482
Total liabilities	5,651,981						4,770,480
Shareholders' equity	778,991						728,502
Total liabilities and shareholders' equity	$	6,430,972					$	5,498,982
Net interest rate spread					3.74	%					3.58	%
Net interest income and margin			$	170,460	3.98	%			$	147,781	4.03	%
Net interest income and net interest     margin (tax equivalent)			$	172,477	4.03	%			$	148,939	4.06	%

8

Allegiance Bancshares, Inc.

Financial Highlights

(Unaudited)

	Three Months Ended
	2021									2020
	September 30			June 30			March 31			December 31			September 30
	(Dollars in thousands)
Period-end Loan Portfolio:
Commercial and industrial	$	728,897		$	690,867		$	664,792		$	667,079		$	650,634
Paycheck Protection Program (PPP)	290,028			499,207			728,424			569,901			710,234
Real estate:
Commercial real estate (including     multi-family residential)	2,073,521			2,051,516			2,018,853			1,999,877			1,971,228
Commercial real estate construction and     land development	382,610			371,732			386,637			367,213			376,877
1-4 family residential (including home equity)	683,919			715,119			726,228			737,605			716,565
Residential construction	104,638			111,956			119,528			127,522			148,056
Consumer and other	25,856			20,346			14,707			22,567			18,768
Total loans	$	4,289,469		$	4,460,743		$	4,659,169		$	4,491,764		$	4,592,362
Asset Quality:
Nonaccrual loans	$	28,369		$	36,643		$	35,051		$	28,893		$	37,928
Accruing loans 90 or more days past due	—			—			—			—			—
Total nonperforming loans	28,369			36,643			35,051			28,893			37,928
Other real estate	1,397			1,397			576			9,196			8,876
Other repossessed assets	—			—			—			—			—
Total nonperforming assets	$	29,766		$	38,040		$	35,627		$	38,089		$	46,804
Net charge-offs	$	450		$	162		$	345		$	4,287		$	291
Nonaccrual loans:
Commercial and industrial	$	10,247		$	12,949		$	14,059		$	10,747		$	13,171
Real estate:
Commercial real estate (including     multi-family residential)	14,629			18,123			13,455			10,081			15,849
Commercial real estate construction and     land development	53			53			1,000			3,011			3,085
1-4 family residential (including home equity)	3,224			4,839			5,736			4,525			4,263
Residential construction	—			—			—			—			876
Consumer and other	216			679			801			529			684
Total nonaccrual loans	$	28,369		$	36,643		$	35,051		$	28,893		$	37,928
Asset Quality Ratios:
Nonperforming assets to total assets	0.44		%	0.58		%	0.55		%	0.63		%	0.78		%
Nonperforming loans to total loans	0.66		%	0.82		%	0.75		%	0.64		%	0.83		%
Allowance for credit losses on loans to     nonperforming loans	177.98		%	135.32		%	150.52		%	184.03		%	128.40		%
Allowance for credit losses on loans to total loans	1.18		%	1.11		%	1.13		%	1.18		%	1.06		%
Net charge-offs to average loans (annualized)	0.04		%	0.01		%	0.03		%	0.37		%	0.03		%

9

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															Year-to-Date
	2021									2020						2021			2020
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
	(Dollars and share amounts in thousands, except per share data)
Total shareholders' equity	$	798,592		$	789,150		$	760,537		$	758,669		$	753,053		$	798,592		$	753,053
Less:  Goodwill and core     deposit intangibles, net	239,124			239,948			240,772			241,596			242,549			239,124			242,549
Tangible shareholders’     equity	$	559,468		$	549,202		$	519,765		$	517,073		$	510,504		$	559,468		$	510,504
Shares outstanding at end of     period	20,218			20,213			20,183			20,208			20,445			20,218			20,445
Tangible book value per share	$	27.67		$	27.17		$	25.75		$	25.59		$	24.97		$	27.67		$	24.97
Net income	$	19,060		$	22,925		$	18,010		$	15,941		$	16,170		$	59,995		$	29,593
Average shareholders' equity	$	800,146		$	774,803		$	761,600		$	756,699		$	748,647		$	778,991		$	728,502
Less:  Average goodwill and     core deposit intangibles, net	239,497			240,331			241,166			242,043			243,015			240,325			244,007
Average tangible     shareholders’ equity	$	560,649		$	534,472		$	520,434		$	514,656		$	505,632		$	538,666		$	484,495
Return on average     tangible equity(A)	13.49		%	17.20		%	14.03		%	12.32		%	12.72		%	14.89		%	8.16		%
Total assets	$	6,759,761		$	6,508,667		$	6,430,990		$	6,050,128		$	5,967,751		$	6,759,761		$	5,967,751
Less: Goodwill and core     deposit intangibles, net	239,124			239,948			240,772			241,596			242,549			239,124			242,549
Tangible assets	$	6,520,637		$	6,268,719		$	6,190,218		$	5,808,532		$	5,725,202		$	6,520,637		$	5,725,202
Tangible equity to tangible     assets	8.58		%	8.76		%	8.40		%	8.90		%	8.92		%	8.58		%	8.92		%

(A)Interim periods annualized.

10