Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________
FORM 10-Q
_____________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2016
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM              TO             
COMMISSION FILE NUMBER: 001-37585
_____________________________
Allegiance Bancshares, Inc.
(Exact name of registrant as specified in its charter)
_____________________________
Texas
26-3564100
(State or other jurisdiction
of incorporation or organization)
(I.R.S. Employer
Identification No.)
8847 West Sam Houston Parkway, N., Suite 200
Houston, Texas 77040
(Address of principal executive offices, including zip code)
(281) 894-3200
(Registrant’s telephone number, including area code)
_____________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒   No  ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒    No   ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:
Large Accelerated Filer
☐ 
Accelerated Filer
 
 
 
 
Non-accelerated Filer
☒  (Do not check if a smaller reporting company)
Smaller Reporting Company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒
As of November 3, 2016, there were 12,905,068 outstanding shares of the registrant’s Common Stock, par value $1.00 per share.



ALLEGIANCE BANCSHARES, INC.
INDEX TO FORM 10-Q
SEPTEMBER 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2

Table of Contents


PART I—FINANCIAL INFORMATION
ITEM 1. INTERIM CONSOLIDATED FINANCIAL STATEMENTS 
ALLEGIANCE BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
 
September 30,
2016
 
December 31,
2015
 
(Unaudited)
 
 
 
(Dollars in thousands, except share data)
ASSETS
 
 
 
Cash and due from banks
$
133,053

 
$
63,380

Interest-bearing deposits at other financial institutions
92,029

 
85,051

Total cash and cash equivalents
225,082

 
148,431

Available for sale securities, at fair value
310,033

 
165,097

Loans held for sale

 
27,887

Loans held for investment
1,830,722

 
1,653,165

Less: allowance for loan losses
(17,185
)
 
(13,098
)
Loans, net
1,813,537

 
1,667,954

Accrued interest receivable
6,962

 
6,518

Premises and equipment, net
17,811

 
18,471

Other real estate owned
1,138

 

Federal Home Loan Bank stock
11,938

 
2,569

Branch assets held for sale

 
1,398

Bank owned life insurance
21,684

 
21,211

Goodwill
39,389

 
39,389

Core deposit intangibles, net
4,250

 
5,230

Other assets
10,078

 
8,311

TOTAL ASSETS
$
2,461,902

 
$
2,084,579

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
LIABILITIES:
 
 
 
Deposits:
 
 
 
Noninterest-bearing
$
604,278

 
$
620,320

Interest-bearing
 
 
 
Demand
112,009

 
97,826

Money market and savings
504,481

 
431,305

Certificates and other time
680,111

 
609,682

Total interest-bearing deposits
1,296,601

 
1,138,813

Total deposits
1,900,879

 
1,759,133

Accrued interest payable
259

 
124

Short-term borrowings
61,000

 
50,000

Other borrowed funds
200,569

 
569

Subordinated debentures
9,169

 
9,089

Other liabilities
8,931

 
7,174

Total liabilities
2,180,807

 
1,826,089

COMMITMENTS AND CONTINGENCIES (See Note 12)


 


STOCKHOLDERS’ 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; 12,905,068 shares issued and outstanding at September 30, 2016 and 12,814,696 shares issued and 12,812,985 shares outstanding at December 31, 2015
12,905

 
12,815

Capital surplus
211,349

 
209,285

Retained earnings
51,491

 
34,411

Accumulated other comprehensive income
5,350

 
2,017

Less: Treasury stock, at cost, 1,711 shares at December 31, 2015. There were no treasury shares outstanding at September 30, 2016.

 
(38
)
Total stockholders’ equity
281,095

 
258,490

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
2,461,902

 
$
2,084,579

See condensed notes to interim consolidated financial statements.

3

Table of Contents


ALLEGIANCE BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(Dollars in thousands, except per share data)
INTEREST INCOME:
 
 
 
 
 
 
 
Loans, including fees
$
24,057

 
$
21,627

 
$
69,124

 
$
63,012

Securities:
 
 
 
 
 
 
 
Taxable
607

 
252

 
1,329

 
694

Tax-exempt
1,505

 
723

 
3,402

 
1,441

Deposits in other financial institutions
150

 
43

 
442

 
167

Total interest income
26,319

 
22,645

 
74,297

 
65,314

INTEREST EXPENSE:
 
 
 
 
 
 
 
Demand, money market and savings deposits
651

 
545

 
1,764

 
1,582

Certificates and other time deposits
1,872

 
1,287

 
5,097

 
3,642

Short-term borrowings
63

 
47

 
308

 
49

Subordinated debentures
123

 
114

 
360

 
439

Other borrowed funds
201

 
245

 
326

 
691

Total interest expense
2,910

 
2,238

 
7,855

 
6,403

NET INTEREST INCOME
23,409

 
20,407

 
66,442

 
58,911

Provision for loan losses
2,214

 
1,530

 
4,569

 
3,633

Net interest income after provision for loan losses
21,195

 
18,877

 
61,873

 
55,278

NONINTEREST INCOME:
 
 
 
 
 
 
 
Nonsufficient funds fees
175

 
179

 
483

 
512

Service charges on deposit accounts
182

 
163

 
500

 
514

Gain on sale of branch assets

 

 
2,050

 

Gain (loss) on sales of other real estate
60

 
1

 
60

 
(5
)
Gain on sales of loans

 
235

 

 
235

Bank owned life insurance income
154

 
167

 
473

 
433

Other
703

 
456

 
2,224

 
1,325

Total noninterest income
1,274

 
1,201

 
5,790

 
3,014

NONINTEREST EXPENSE:
 
 
 
 
 
 
 
Salaries and employee benefits
9,781

 
8,996

 
28,231

 
26,419

Net occupancy and equipment
1,260

 
1,289

 
3,706

 
3,647

Depreciation
404

 
414

 
1,236

 
1,190

Data processing and software amortization
655

 
841

 
1,930

 
2,294

Professional fees
442

 
343

 
1,377

 
1,220

Regulatory assessments and FDIC insurance
396

 
296

 
1,096

 
990

Core deposit intangibles amortization
196

 
207

 
590

 
622

Communications
264

 
300

 
818

 
992

Advertising
228

 
188

 
626

 
510

Other
1,269

 
1,027

 
3,461

 
3,025

Total noninterest expense
14,895

 
13,901

 
43,071

 
40,909

INCOME BEFORE INCOME TAXES
7,574

 
6,177

 
24,592

 
17,383

Provision for income taxes
2,103

 
1,957

 
7,512

 
5,809

NET INCOME
5,471

 
4,220

 
17,080

 
11,574

Preferred stock dividends

 
173

 

 
559

NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS
$
5,471

 
$
4,047

 
$
17,080

 
$
11,015

EARNINGS PER COMMON SHARE:
 
 
 
 
 
 
 
Basic
$
0.42

 
$
0.41

 
$
1.33

 
$
1.12

Diluted
$
0.42

 
$
0.40

 
$
1.31

 
$
1.10

See condensed notes to interim consolidated financial statements.

4

Table of Contents


ALLEGIANCE BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
 
(Dollars in thousands)
Net income
$
5,471

 
$
4,220

 
$
17,080

 
$
11,574

Other comprehensive (loss) income, before tax:
 
 
 
 
 
 
 
Unrealized (loss) gain on securities:
 
 
 
 
 
 
 
Change in unrealized holding (loss) gain on available for sale securities during the period
(2,308
)
 
2,162

 
5,127

 
1,197

Reclassification of amount realized through the sale of securities

 

 

 

Total other comprehensive (loss) income
(2,308
)
 
2,162

 
5,127

 
1,197

Deferred tax expense (benefit) related to other comprehensive (loss) income
808

 
(756
)
 
(1,794
)
 
(427
)
Other comprehensive (loss) income, net of tax
(1,500
)
 
1,406

 
3,333

 
770

Comprehensive income
$
3,971

 
$
5,626

 
$
20,413

 
$
12,344

See condensed notes to interim consolidated financial statements.

5

Table of Contents


ALLEGIANCE BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
 
Preferred Stock
 
Common Stock
 
Capital
 
Retained
 
Accumulated
Other
Comprehensive
 
Treasury
 
Total
Stockholders’
 
Shares
 
Amount
 
Shares
 
Amount
 
Surplus
 
Earnings
 
Income (Loss)
 
Stock
 
Equity
 
(In thousands, except share data)
BALANCE AT JANUARY 1, 2015

 
$

 
7,477,309

 
$
7,477

 
$
104,568

 
$
19,184

 
$
549

 
$

 
$
131,778

Net income
 
 
 
 
 
 
 
 
 
 
11,574

 
 
 
 
 
11,574

Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
770

 
 
 
770

Common stock issued in connection with the exercise of stock options and restricted stock awards
 
 
 
 
3,983

 
4

 
7

 
 
 
 
 


 
11

Repurchase of treasury stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(51
)
 
(51
)
Issuance of common stock
 
 
 
 
4,884

 
5

 
103

 
 
 
 
 
14

 
122

Common stock issued in connection with the acquisition of F&M Bancshares, Inc.
 
 
 
 
2,338,520

 
2,339

 
49,108

 
 
 
 
 
 
 
51,447

Preferred stock issued in connection with the acquisition of F&M Bancshares, Inc.
11,550

 
11,550

 
 
 
 
 
 
 
 
 
 
 
 
 
11,550

Redemption of preferred stock
(11,550
)
 
(11,550
)
 
 
 
 
 
 
 
 
 
 
 
 
 
(11,550
)
Preferred stock dividends
 
 
 
 
 
 
 
 
 
 
(559
)
 
 
 
 
 
(559
)
Stock based compensation expense
 
 
 
 
 
 
 
 
951

 
 
 
 
 
 
 
951

BALANCE AT SEPTEMBER 30, 2015

 
$

 
9,824,696

 
$
9,825

 
$
154,737

 
$
30,199

 
$
1,319

 
$
(37
)
 
$
196,043

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
BALANCE AT JANUARY 1, 2016

 
$

 
12,814,696

 
$
12,815

 
$
209,285

 
$
34,411

 
$
2,017

 
$
(38
)
 
$
258,490

Net income
 
 
 
 
 
 
 
 
 
 
17,080

 
 
 
 
 
17,080

Other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
 
3,333

 
 
 
3,333

Common stock issued in connection with the exercise of stock options and restricted stock awards
 
 
 
 
90,372

 
90

 
986

 
 
 
 
 
 
 
1,076

Issuance of treasury stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
38

 
38

Stock based compensation expense
 
 
 
 
 
 
 
 
1,078

 
 
 
 
 
 
 
1,078

BALANCE AT SEPTEMBER 30, 2016

 
$

 
12,905,068

 
$
12,905

 
$
211,349

 
$
51,491

 
$
5,350

 
$

 
$
281,095

See condensed notes to interim consolidated financial statements.

6

Table of Contents


ALLEGIANCE BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Nine Months Ended September 30,
 
2016
 
2015
 
(Dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
17,080

 
$
11,574

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and core deposit intangibles amortization
1,826

 
1,812

Provision for loan losses
4,569

 
3,633

Net amortization of premium on investments
2,048

 
815

Bank owned life insurance
(473
)
 
(433
)
Net accretion of discount on loans
(1,213
)
 
(2,968
)
Net amortization of discount on subordinated debentures
80

 
191

Net amortization of discount on certificates of deposit
(228
)
 
(621
)
Net loss on sales or write down of premises, equipment and other real estate
(60
)
 
5

Net gain on sale of branch assets
(2,050
)
 

Net gain on sales of loans

 
(235
)
Federal Home Loan Bank stock dividends
(60
)
 
(2
)
Stock based compensation expense
1,078

 
951

Increase in accrued interest receivable and other assets
(3,461
)
 
(227
)
Increase in accrued interest payable and other liabilities
2,156

 
832

Net cash provided by operating activities
21,292

 
15,327

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Proceeds from maturities and principal paydowns of available for sale securities
2,564,916

 
1,213,992

Proceeds from sales of available for sale securities

 
14,748

Purchase of available for sale securities
(2,706,773
)
 
(1,283,220
)
Net change in total loans
(168,108
)
 
(209,271
)
Proceeds from sales of loans

 
2,074

Purchase of bank premises and equipment
(590
)
 
(1,891
)
Purchase of bank owned life insurance

 
(10,000
)
Net purchases of Federal Home Loan Bank stock
(9,309
)
 
(7,220
)
Net cash paid for the sale of branch assets
(5,250
)
 

Net cash and cash equivalents acquired in the purchase of F&M Bancshares, Inc.

 
106,486

Net cash used in investing activities
(325,114
)
 
(174,302
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Net (decrease) increase in noninterest-bearing deposits
(9,514
)
 
1,449

Net increase in interest-bearing deposits
177,873

 
31,603

Paydowns of long-term borrowings

 
(18,000
)
Proceeds from long-term borrowings
200,000

 
18,000

Paydowns of short-term borrowings
(20,000
)
 

Proceeds from short-term borrowings
31,000

 
115,000

Preferred stock dividends

 
(559
)
Redemption of preferred stock

 
(11,550
)
Proceeds from the issuance of common stock, stock option exercises, restricted stock awards and the ESPP
1,076

 
133

Issuance (repurchase) of treasury stock
38

 
(51
)
Net cash provided by financing activities
380,473

 
136,025

NET CHANGE IN CASH AND CASH EQUIVALENTS
76,651

 
(22,950
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
148,431

 
167,540

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
225,082

 
$
144,590

NONCASH ACTIVITIES:
 
 
 
Acquired loans transferred to loans held for sale
$

 
$
33,409

Acquired premises and equipment and accrued interest receivable transferred to branch assets held for sale

 
1,662

SUPPLEMENTAL INFORMATION:
 
 
 
Income taxes paid
$
9,100

 
$
5,600

Interest paid
2,541

 
5,675

See Note 2 regarding non-cash transactions included in the F&M Bancshares, Inc. acquisition
 
 
 
See condensed notes to interim consolidated financial statements.

7

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Nature of Operations-Allegiance Bancshares, Inc. (“Allegiance”) and its wholly-owned subsidiary, Allegiance Bank, a Texas state bank, (the “Bank”, and together with Allegiance, collectively referred to as the “Company”) provide commercial and retail loans and commercial banking services. The Company derives substantially all of its revenues and income from the operation of the Bank. The Company is focused on delivering a wide variety of relationship-driven commercial banking products and community-oriented services tailored to meet the needs of small to mid-sized businesses, professionals and individuals through its 16 offices in Houston, Texas and the surrounding region. The Bank provides its customers with a variety of banking services including checking accounts, savings accounts and certificates of deposit, and its primary lending products are commercial, personal, automobile, mortgage and home improvement loans. The Bank also offers safe deposit boxes, automated teller machines, drive-through services and 24-hour depository facilities.
Basis of Presentation-The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions with Allegiance have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. Furthermore, the acquisition of F&M Bancshares, Inc. during the first quarter of 2015 may impact the comparability of year to date 2016 versus year to date 2015 comparable information.
Significant Accounting and Reporting Policies
The Company’s significant accounting and reporting policies can be found in Note 1 of the Company’s annual financial statements included the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
New Accounting Standards
Adoption of New Accounting Standards
On January 1, 2016, the Company adopted ASU 2015-16, “Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments.” ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Additionally, the entity is required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The adoption of ASU 2015-16 did not have a significant impact on the Company’s financial statements.

8

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

Newly Issued But Not Yet Effective Accounting Standards
In May 2014, the FASB issued ASU 2014-09 “Revenue from Contract with Customers (Topic 606)” ("ASU 2014-09"). ASU 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605), and most industry-specific guidance throughout the Industry Topics of the Codification. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 is currently effective for the Company beginning on January 1, 2018 with retrospective application to each prior reporting period presented. The Company is currently evaluating the potential impact of ASU 2014-09 on the Company’s financial statements.
In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for the Company on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the potential impact of ASU 2016-02 on the Company’s financial statements.
In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” ("ASU 2016-09"). Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. ASU 2016-09 will be effective on January 1, 2017 and is not expected to have a significant impact on the Company’s financial statements.
In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing” ("ASU 2016-10"). ASU 2016-10 was issued to clarify ASC Topic 606, “Revenue from Contracts with Customers” related to (i) identifying performance obligations; and (ii) the licensing implementation guidance. The effective date and transition of ASU 2016-10 is the same as the effective date and transition of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” as discussed above. The Company is currently evaluating the potential impact of ASU 2016-10 on the Company’s financial statements.
In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”). Among other things, ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better form their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 31, 2019, and interim periods within those years for public business entities that are SEC filers. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently evaluating the impact that the adoption of this standard will have on the Company’s financial statements.

9

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"). ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. ASU 2016-15 will be effective on January 1, 2018 and is not expected to have a significant impact on the Company's financial statements.

2. ACQUISITIONS
2015 Acquisition
Acquisition of F&M Bancshares - On January 1, 2015, the Company completed the acquisition of F&M Bancshares, Inc. (“F&M Bancshares”) and its wholly-owned subsidiary Enterprise Bank (“Enterprise”) headquartered in Houston, Texas. Enterprise operated nine banking locations, seven in Houston, Texas and two in Central Texas: one in Rosebud, Texas and one in Mart, Texas. During the first quarter of 2015, the Company consolidated two of the seven acquired Houston area locations due to the close proximity of these locations to the Company’s existing banking locations. The Company acquired F&M Bancshares to further expand its Houston, Texas area market. During the first quarter of 2016, Allegiance completed the sale of the two Central Texas branch locations that were acquired as part of the F&M Bancshares acquisition. Allegiance sold $18.2 million and $26.6 million of loans and deposits, respectively, and recorded a gain of approximately $2.1 million on the sale of these branches.
Pursuant to the merger agreement, the Company issued 2,338,520 shares of Company common stock for all outstanding shares of F&M Bancshares capital stock and paid $642 thousand in cash for any fractional and out of state shares held by F&M Bancshares shareholders. The Company recognized initial goodwill of $28.2 million, which is calculated as the excess of both the consideration exchanged and liabilities assumed as compared to the fair value of identifiable assets acquired, none of which is expected to be deductible for tax purposes. F&M Bancshares results of operations were included in the Company’s results beginning January 1, 2015.

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Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

The Company finalized its valuation of all assets and liabilities acquired, resulting in no changes to purchase accounting adjustments. A summary of the final purchase price allocation is as follows (dollars in thousands):
Fair value of consideration paid:
 
Common shares issued (2,338,520 shares)
$
51,447

Preferred shares issued (11,550 shares)
11,550

Cash consideration
642

Total consideration paid
$
63,639

 
 
Fair value of assets acquired:
 
Cash and cash equivalents
$
107,128

Investment Securities
14,722

Loans, net
404,637

Premises and equipment
7,699

Core deposit intangibles
4,313

Other assets
15,896

Total assets acquired
$
554,395

 
 
Fair value of liabilities assumed:
 
Deposits
$
489,556

Subordinated debt
8,871

Other borrowed funds
18,000

Other liabilities
2,574

Total liabilities assumed
519,001

Fair value of net assets acquired
$
35,394

Goodwill resulting from acquisition
$
28,245

Subsequent to the acquisition, the Company paid off $18.0 million of borrowed funds from F&M Bancshares shareholders by drawing on its borrowing facility with another financial institution. Additionally, the securities acquired from F&M Bancshares were sold subsequent to the acquisition with no income statement impact.
On July 15, 2015, the Company redeemed all of the outstanding shares of the Company’s Series A and Series B preferred stock for an aggregate redemption price of $11.7 million (which is the sum of the liquidation amount plus accrued and unpaid dividends up to but excluding the redemption date). The Company issued the shares of Series A and Series B preferred stock in connection with the F&M Bancshares acquisition, which had preferred stock pursuant to the U.S. Treasury’s Troubled Asset Relief Program.
The Company incurred approximately $941 thousand of pre-tax merger related expenses during the year ended December 31, 2015. The merger expenses are reflected on the Company’s income statement for the applicable period and are reported primarily in the categories of salaries and benefits and professional fees.

11

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

3. GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS
Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows:
 
Goodwill
 
Core Deposit
Intangible Assets
 
(Dollars in thousands)
Balance as of January 1, 2015
$
11,144

 
$
1,747

Acquisition of F&M Bancshares
28,245

 
4,313

Amortization

 
(830
)
Balance as of December 31, 2015
39,389

 
5,230

Sale of branch assets

 
(390
)
Amortization

 
(590
)
Balance as of September 30, 2016
$
39,389

 
$
4,250

Goodwill is recorded on the acquisition date of an entity. Management performs an evaluation annually, and more frequently if a triggering event occurs, of whether any impairment of the goodwill and other intangible assets has occurred. If any such impairment is determined, a write-down is recorded. As of September 30, 2016, there were no impairments recorded on goodwill and other intangible assets. During the first quarter of 2016, the Bank completed the sale of the two Central Texas branch locations acquired from F&M Bancshares in 2015 and wrote-down the core deposit intangible assets related to those locations.
The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2016 is as follows (dollars in thousands):
Remaining 2016
$
195

2017
781

2018
781

2019
781

2020
744

Thereafter
968

Total
$
4,250

4. SECURITIES
The amortized cost and fair value of investment securities were as follows:
 
September 30, 2016
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(Dollars in thousands)
Available for Sale
 
 
 
 
 
 
 
U.S. Government and agency securities
$
5,871

 
$
474

 
$

 
$
6,345

Municipal securities
222,299

 
6,722

 
(91
)
 
228,930

Agency mortgage-backed pass-through securities
25,676

 
634

 
(69
)
 
26,241

Corporate bonds
47,957

 
560

 

 
48,517

Total
$
301,803

 
$
8,390

 
$
(160
)
 
$
310,033


12

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

 
December 31, 2015
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
(Dollars in thousands)
Available for Sale
 
 
 
 
 
 
 
U.S. Government and agency securities
$
8,674

 
$
412

 
$

 
$
9,086

Municipal securities
123,809

 
2,575

 
(35
)
 
126,349

Agency mortgage-backed pass-through securities
29,511

 
397

 
(246
)
 
29,662

Total
$
161,994

 
$
3,384

 
$
(281
)
 
$
165,097

The amortized cost and fair value of investment securities at September 30, 2016, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties.
 
Amortized
Cost
 
Fair
Value
 
(Dollars in thousands)
Due in one year or less
$
2,748

 
$
2,768

Due after one year through five years
68,334

 
69,234

Due after five years through ten years
80,158

 
82,241

Due after ten years
124,887

 
129,549

Subtotal
276,127

 
283,792

Agency mortgage-backed pass through securities
25,676

 
26,241

Total
$
301,803

 
$
310,033

As of September 30, 2016, the Company’s management does not expect to sell any securities classified as available for sale with material unrealized losses; and the Company believes that the Company more likely than not will not be required to sell any of these securities before their anticipated recovery, at which time the Company will receive full value for the securities. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2016, management believes the unrealized losses in the previous table are temporary and no other than temporary impairment loss has been realized in the Company’s consolidated statements of income.
Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows:
 
September 30, 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
20,343

 
(91
)
 

 

 
20,343

 
(91
)
Agency mortgage-backed pass-through securities
2,183

 
(5
)
 
6,102

 
(64
)
 
8,285

 
(69
)
Corporate bonds

 

 

 

 

 

Total
$
22,526

 
$
(96
)
 
$
6,102

 
$
(64
)
 
$
28,628

 
$
(160
)

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ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

 
December 31, 2015
 
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
6,867

 
(30
)
 
298

 
(5
)
 
7,165

 
(35
)
Agency mortgage-backed pass-through securities
4,952

 
(36
)
 
9,519

 
(210
)
 
14,471

 
(246
)
Total
$
11,819

 
$
(66
)
 
$
9,817

 
$
(215
)
 
$
21,636

 
$
(281
)
During the first quarter of 2015, the Company sold all securities acquired in the F&M Bancshares acquisition, resulting in gross proceeds of approximately $15.0 million. No gains or losses were recognized. No securities were sold during the three and nine months ended September 30, 2016.
At September 30, 2016 and December 31, 2015, the Company did not own securities of any one issuer, other than the U.S government and its agencies, in an amount greater than 10% of consolidated stockholders’ equity at such respective dates.
The carrying value of pledged securities was $4.9 million at September 30, 2016. The securities are pledged to further collateralize letters of credit issued by the Bank but confirmed by another financial institution. The Company did not have pledged securities at December 31, 2015.
5. LOANS AND ALLOWANCE FOR LOAN LOSSES
The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are classified by major type as follows:
 
September 30,
2016
 
December 31,
2015
 
(Dollars in thousands)
Loans held for sale(1)
$

 
$
27,887

 
 
 
 
Commercial and industrial
402,273

 
383,044

Mortgage warehouse
76,043

 
59,071

Real estate:
 
 
 
Commercial real estate (including multi-family residential)
848,939

 
745,595

Commercial real estate construction and land development
167,936

 
154,646

1-4 family residential (including home equity)
228,651

 
205,200

Residential construction
93,923

 
93,848

Consumer and other
12,957

 
11,761

Total loans held for investment
1,830,722

 
1,653,165

Total loans
1,830,722

 
1,681,052

Allowance for loan losses
(17,185
)
 
(13,098
)
Loans, net
$
1,813,537

 
$
1,667,954

(1)
Consisted of loans at two former F&M Bancshares locations acquired in 2015 and sold during the first quarter of 2016. At December 31, 2015, loans held for sale consisted of $13.2 million of commercial and industrial loans, $11.6 million of commercial real estate (including multi-family residential) loans, $2.3 million of 1-4 family residential (including home equity) loans and $803 thousand of consumer and other loans. Loans held for sale were carried at the lower of aggregate cost or fair value.

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Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

Nonaccrual and Past Due Loans
An aging analysis of the recorded investment in past due loans, segregated by class of loans, is as follows:
 
September 30, 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
$
712

 
$

 
$
712

 
$
4,983

 
$
396,578

 
$
402,273

Mortgage warehouse

 

 

 

 
76,043

 
76,043

Real estate:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate (including multi-family residential)
1,561

 

 
1,561

 
10,495

 
836,883

 
848,939

Commercial real estate construction and land development
99

 

 
99

 

 
167,837

 
167,936

1-4 family residential (including home equity)
315

 

 
315

 
11

 
228,325

 
228,651

Residential construction
856

 

 
856

 

 
93,067

 
93,923

Consumer and other
63

 

 
63

 
393

 
12,501

 
12,957

Total loans
$
3,606

 
$

 
$
3,606

 
$
15,882

 
$
1,811,234

 
$
1,830,722

 
December 31, 2015
 
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)
Loans held for sale
$
539

 
$

 
$
539

 
$
209

 
$
27,139

 
$
27,887

 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
1,474

 

 
1,474

 
2,664

 
378,906

 
383,044

Mortgage warehouse

 

 

 

 
59,071

 
59,071

Real estate:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate (including multi-family residential)
1,866

 

 
1,866

 
2,006

 
741,723

 
745,595

Commercial real estate construction and land development
77

 

 
77

 

 
154,569

 
154,646

1-4 family residential (including home equity)
1,904

 

 
1,904

 
239

 
203,057

 
205,200

Residential construction

 

 

 

 
93,848

 
93,848

Consumer and other
36

 

 
36

 
66

 
11,659

 
11,761

Total loans held for investment
5,357

 

 
5,357

 
4,975

 
1,642,833

 
1,653,165

Total loans
$
5,896

 
$

 
$
5,896

 
$
5,184

 
$
1,669,972

 
$
1,681,052


15

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

Impaired Loans
Impaired loans by class of loans are set forth in the following tables. The average recorded investment presented in the table below is reported on a year-to-date basis.
 
September 30, 2016
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
(Dollars in thousands)
With no related allowance recorded:
 
 
 
 
 
Commercial and industrial
$
6,196

 
$
6,949

 
$

Mortgage warehouse

 

 

Real estate:
 
 
 
 
 
Commercial real estate (including multi-family residential)
12,607

 
12,693

 

Commercial real estate construction and land development

 

 

1-4 family residential (including home equity)
798

 
798

 

Residential construction

 

 

Consumer and other
8

 
8

 

Total
19,609

 
20,448

 

 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
Commercial and industrial
2,497

 
2,497

 
1,118

Mortgage warehouse

 

 

Real estate:
 
 
 
 
 
Commercial real estate (including multi-family residential)
240

 
240

 
24

Commercial real estate construction and land development

 

 

1-4 family residential (including home equity)

 

 

Residential construction

 

 

Consumer and other
45

 
45

 
16

Total
2,782

 
2,782

 
1,158

 
 
 
 
 
 
Total:
 
 
 
 
 
Commercial and industrial
8,693

 
9,446

 
1,118

Mortgage warehouse

 

 

Real estate:
 
 
 
 
 
Commercial real estate (including multi-family residential)
12,847

 
12,933

 
24

Commercial real estate construction and land development

 

 

1-4 family residential (including home equity)
798

 
798

 

Residential construction

 

 

Consumer and other
53

 
53

 
16

 
$
22,391

 
$
23,230

 
$
1,158

    

16

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

 
Year Ended December 31, 2015
 
Recorded Investment
 
Unpaid Principal
Balance
 
Related Allowance
 
(Dollars in thousands)
With no related allowance recorded:
 
 
 
 
 
Commercial and industrial
$
3,842

 
$
4,216

 
$

Mortgage warehouse

 

 

Real estate:
 
 
 
 
 
Commercial real estate (including multi-family residential)
4,700

 
4,700

 

Commercial real estate construction and land development

 

 

1-4 family residential (including home equity)
239

 
239

 

Residential construction

 

 

Consumer and other
82

 
97

 

Total
8,863

 
9,252

 

 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
Commercial and industrial
1,573

 
1,573

 
670

Mortgage warehouse

 

 

Real estate:
 
 
 
 
 
Commercial real estate (including multi-family residential)
1,146

 
1,146

 
180

Commercial real estate construction and land development

 

 

1-4 family residential (including home equity)

 

 

Residential construction

 

 

Consumer and other
19

 
19

 
9

Total
2,738

 
2,738

 
859

 
 
 
 
 
 
Total:
 
 
 
 
 
Commercial and industrial
5,415

 
5,789

 
670

Mortgage warehouse

 

 

Real estate:
 
 
 
 
 
Commercial real estate (including multi-family residential)
5,846

 
5,846

 
180

Commercial real estate construction and land development

 

 

1-4 family residential (including home equity)
239

 
239

 

Residential construction

 

 

Consumer and other
101

 
116

 
9

 
$
11,601

 
$
11,990

 
$
859


17

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

The following table presents average impaired loans and interest recognized on impaired loans for the three and nine months ended September 30, 2016 and 2015:
 
Three Months Ended September 30,
 
2016
 
2015
 
Average Recorded Investment
 
Interest Income
Recognized
 
Average Recorded Investment
 
Interest Income
Recognized
 
(Dollars in thousands)
Commercial and industrial
$
7,461

 
$
211

 
$
4,021

 
$
57

Mortgage warehouse

 

 

 

Real estate:
 
 
 
 
 
 
 
Commercial real estate (including multi-family residential)
12,486

 
159

 
2,022

 
14

Commercial real estate construction and land development

 

 

 

1-4 family residential (including home equity)
524

 
16

 
380

 
2

Residential construction

 

 

 

Consumer and other
50

 
1

 
127

 
1

          Total
20,521

 
387

 
6,550

 
74

 
Nine Months Ended September 30,
 
2016
 
2015
 
Average Recorded Investment
 
Interest Income
Recognized
 
Average Recorded Investment
 
Interest Income
Recognized
 
(Dollars in thousands)
Commercial and industrial
$
8,963

 
$
374

 
$
4,285

 
$
155

Mortgage warehouse

 

 

 

Real estate:
 
 
 
 
 
 
 
Commercial real estate (including multi-family residential)
13,373

 
381

 
1,867

 
86

Commercial real estate construction and land development

 

 

 

1-4 family residential (including home equity)
814

 
24

 
382

 
12

Residential construction

 

 

 

Consumer and other
61

 
3

 
132

 
7

          Total
23,211

 
782

 
6,666

 
260

Credit Quality Indicators
The company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including factors such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans by credit risk. As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for credit losses, management assigns and tracks risk ratings to be used as credit quality indicators.
The following is a general description of the risk ratings used:
Pass—Loans classified as pass are loans with low to average risk and not otherwise classified as watch, special mention, substandard or doubtful. In addition, the guaranteed portion of SBA loans are considered pass risk rated loans.

18

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

Watch—Loans classified as watch loans may still be of high quality, but have an element of risk added to the credit such as declining payment history, deteriorating financial position of the borrower or a decrease in collateral value.
Special Mention—Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Substandard—Loans classified as substandard have well-defined weaknesses on a continuing basis and are inadequately protected by the current net worth and paying capacity of the borrower, impaired or declining collateral values, or a continuing downturn in their industry which is reducing their profits to below zero and having a significantly negative impact on their cash flow. These classified loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.
Based on the most recent analysis performed, the risk category of loans by class of loan at September 30, 2016 is as follows:
 
Pass
 
Watch
 
Special Mention
 
Substandard
 
Doubtful
 
Total
 
(Dollars in thousands)
Commercial and industrial
$
372,039

 
$
5,878

 
$
5,381

 
$
18,975

 
$

 
$
402,273

Mortgage warehouse
76,043

 

 

 

 

 
76,043

Real estate:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate (including multi-family residential)
787,213

 
16,201

 
7,103

 
38,422

 

 
848,939

Commercial real estate construction and land development
159,143

 
8,288

 

 
505

 

 
167,936

1-4 family residential (including home equity)
224,325

 
298

 
1,848

 
2,180

 

 
228,651

Residential construction
93,076

 

 
415

 
432

 

 
93,923

Consumer and other
12,423

 
397

 

 
137

 

 
12,957

Total loans
$
1,724,262

 
$
31,062

 
$
14,747

 
$
60,651

 
$

 
$
1,830,722


19

Table of Contents

ALLEGIANCE BANCSHARES, INC.
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2016
(Unaudited)

The following table presents the risk category of loans by class of loan at December 31, 2015:
 
Pass
 
Watch
 
Special Mention
 
Substandard
 
Doubtful
 
Total
 
(Dollars in thousands)
Loans held for sale
$
26,570

 
$
477

 
$
19

 
$
821

 
$

 
$
27,887

 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
366,479

 
8,094

 
1,253

 
7,218

 

 
383,044

Mortgage warehouse
59,071

 

 

 

 

 
59,071

Real estate:
 
 
 
 
 
 
 
 
 
 


Commercial real estate (including multi-family residential)
721,781

 
7,186

 
790

 
15,838

 

 
745,595

Commercial real estate construction and land development
152,380

 
1,846

 

 
420

 

 
154,646

1-4 family residential (including home equity)
200,262

 
2,385

 
390