Allegiance Bancshares (ABTX) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Document And Entity Information
Entity Registrant Name	Allegiance Bancshares, Inc.
Entity Central Index Key	1,642,081
Trading Symbol	abtx
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding (in shares)		13,099,019

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 136,413	$ 94,073
Interest-bearing deposits at other financial institutions	47,733	48,025
Total cash and cash equivalents	184,146	142,098
Available for sale securities, at fair value	317,219	316,455
Loans held for investment	1,986,438	1,891,635
Less: allowance for loan losses	(18,687)	(17,911)
Loans, net	1,967,751	1,873,724
Accrued interest receivable	7,444	9,007
Premises and equipment, net	18,138	18,340
Other real estate owned	365	1,503
Federal Home Loan Bank stock	19,863	13,175
Bank owned life insurance	21,985	21,837
Goodwill	39,389	39,389
Core deposit intangibles, net	3,860	4,055
Other assets	12,170	11,365
TOTAL ASSETS	2,592,330	2,450,948
Deposits:
Noninterest-bearing	615,225	593,751
Interest-bearing
Demand	139,648	114,772
Money market and savings	492,246	483,266
Certificates and other time	765,450	678,394
Total interest-bearing deposits	1,397,344	1,276,432
Total deposits	2,012,569	1,870,183
Accrued interest payable	245	285
Short-term borrowings	75,000	85,000
Other borrowed funds	200,569	200,569
Subordinated debentures	9,222	9,196
Other liabilities	5,595	5,898
Total liabilities	2,303,200	2,171,131
COMMITMENTS AND CONTINGENCIES (See Note 12)
SHAREHOLDERS’ EQUITY:
Preferred stock, $1 par value; 1,000,000 shares authorized; there were no shares issued and outstanding of Series A or Series B, each has a $1,000 liquidation value	0	0
Common stock, $1 par value; 40,000,000 shares authorized; 13,080,442 shares issued and outstanding at March 31, 2017 and 12,958,341 shares issued and outstanding at December 31, 2016	13,080	12,958
Capital surplus	215,015	212,649
Retained earnings	63,309	57,262
Accumulated other comprehensive loss	(2,274)	(3,052)
Total shareholders’ equity	289,130	279,817
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 2,592,330	$ 2,450,948

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	13,080,442	12,958,341
Common stock, shares outstanding (in shares)	13,080,442	12,958,341
Series A Preferred Stock
Shares issued (in shares)	0	0
Shares outstanding (in shares)	0	0
Liquidation value	$ 1,000	$ 1,000
Series B Preferred Stock
Shares issued (in shares)	0	0
Shares outstanding (in shares)	0	0
Liquidation value	$ 1,000	$ 1,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
INTEREST INCOME:
Loans, including fees	$ 25,260	$ 22,228
Securities:
Taxable	498	270
Tax-exempt	1,624	811
Deposits in other financial institutions	130	142
Total interest income	27,512	23,451
INTEREST EXPENSE:
Demand, money market and savings deposits	654	544
Certificates and other time deposits	1,957	1,560
Short-term borrowings	324	139
Subordinated debentures	120	117
Other borrowed funds	329	7
Total interest expense	3,384	2,367
NET INTEREST INCOME	24,128	21,084
Provision for loan losses	1,343	710
Net interest income after provision for loan losses	22,785	20,374
NONINTEREST INCOME:
Nonsufficient funds fees	199	163
Service charges on deposit accounts	195	145
Gain on sale of branch assets	0	2,050
Bank owned life insurance income	148	166
Other	799	780
Total noninterest income	1,341	3,304
NONINTEREST EXPENSE:
Salaries and employee benefits	10,562	9,273
Net occupancy and equipment	1,427	1,232
Depreciation	400	417
Data processing and software amortization	695	653
Professional fees	895	534
Regulatory assessments and FDIC insurance	589	345
Core deposit intangibles amortization	195	199
Communications	247	280
Advertising	263	201
Other	1,276	1,119
Total noninterest expense	16,549	14,253
INCOME BEFORE INCOME TAXES	7,577	9,425
Provision for income taxes	1,530	3,070
NET INCOME	$ 6,047	$ 6,355
EARNINGS PER SHARE:
Basic (in dollars per share)	$ 0.46	$ 0.49
Diluted (in dollars per share)	$ 0.45	$ 0.49

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 6,047	$ 6,355
Unrealized gain on securities:
Change in unrealized holding gain on available for sale securities during the period	1,197	1,203
Total other comprehensive income	1,197	1,203
Deferred tax expense related to other comprehensive income	(419)	(421)
Other comprehensive income, net of tax	778	782
Comprehensive income	$ 6,825	$ 7,137

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Capital Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance (in shares) at Dec. 31, 2015		12,814,696
Balance at Dec. 31, 2015	$ 258,490	$ 12,815	$ 209,285	$ 34,411	$ 2,017	$ (38)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,355			6,355
Other comprehensive income	782				782
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares)		30,056
Common stock issued in connection with the exercise of stock options and restricted stock awards	274	$ 30	244
Repurchase of treasury stock	38					38
Stock based compensation expense	354		354
Balance (in shares) at Mar. 31, 2016		12,844,752
Balance at Mar. 31, 2016	266,293	$ 12,845	209,883	40,766	2,799	0
Balance (in shares) at Dec. 31, 2016		12,958,341
Balance at Dec. 31, 2016	279,817	$ 12,958	212,649	57,262	(3,052)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	6,047			6,047
Other comprehensive income	778				778
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares)		122,101
Common stock issued in connection with the exercise of stock options and restricted stock awards	2,147	$ 122	2,025
Stock based compensation expense	341		341
Balance (in shares) at Mar. 31, 2017		13,080,442
Balance at Mar. 31, 2017	$ 289,130	$ 13,080	$ 215,015	$ 63,309	$ (2,274)	$ 0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 6,047	$ 6,355
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and core deposit intangibles amortization	595	616
Provision for loan losses	1,343	710
Excess tax benefit related to the exercise of stock options	(631)	0
Net amortization of premium on investments	826	534
Bank owned life insurance	(148)	(166)
Net accretion of discount on loans	(236)	(553)
Net amortization of discount on subordinated debentures	26	26
Net amortization of discount on certificates of deposit	(253)	(733)
Net gain on sale of branch assets	0	(2,050)
Federal Home Loan Bank stock dividends	(46)	(14)
Stock based compensation expense	341	354
Decrease in accrued interest receivable and other assets	698	288
(Decrease) increase in accrued interest payable and other liabilities	545	43
Net cash provided by operating activities	9,107	5,410
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and principal paydowns of available for sale securities	902,938	1,024,262
Purchase of available for sale securities	(903,331)	(1,073,897)
Net change in total loans	(93,996)	(55,382)
Purchase of bank premises and equipment	(557)	(81)
Net purchases of Federal Home Loan Bank stock	(6,642)	(6,154)
Net cash paid for the sale of branch assets	0	(5,250)
Net cash used in investing activities	(101,588)	(116,502)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in noninterest-bearing deposits	21,474	70,453
Net increase in interest-bearing deposits	120,908	40,186
Paydowns of short-term borrowings	(10,000)	0
Proceeds from short-term borrowings	0	35,000
Proceeds from the issuance of common stock, stock option exercises, restricted stock awards and the ESPP	2,147	274
Issuance of treasury stock	0	38
Net cash provided by financing activities	134,529	145,951
NET CHANGE IN CASH AND CASH EQUIVALENTS	42,048	34,859
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	142,098	148,431
CASH AND CASH EQUIVALENTS, END OF PERIOD	184,146	183,290
SUPPLEMENTAL INFORMATION:
Income taxes paid	0	1,900
Interest paid	$ 3,421	$ 2,228

NATURE OF OPERATIONS AND SUMMAR

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES	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, (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 and one loan production office 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 U.S. 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, 2016 . Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . 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 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . New Accounting Standards Newly Issued But Not Yet Effective Accounting Standards ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” 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 effective for the Company beginning on January 1, 2018, with retrospective application to each prior reporting period presented. The Company expects to adopt ASU 2014-09 in the first quarter 2018 using the modified retrospective approach, which includes presenting the cumulative effect of initial application along with supplementary disclosures. The Company is evaluating the full effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures, however, adoption of the ASU is not expected to have a significant impact. The Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of ASU 2014-09. ASU 2016-02 “Leases (Topic 842)." 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. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s financial statements. The Company leases certain properties and equipment under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” 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. ASU 2016-13 is effective for the Company on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact that the adoption of this standard will have on the financial condition and results of operations of the Company. ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. Among other things, the update clarifies the appropriate classification for proceeds from settlement of bank owned life insurance (BOLI) policies. Based on preliminary assessments, the Company expects to change the classification of proceeds from settlement of BOLI policies from operating activities to investing activities. Other changes in classification resulting from this update are not expected to be significant. ASU 2016-15 is effective for the Company on January 1, 2018 and must be applied using the retrospective approach. Early adoption is permitted. ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” ASU 2017-04 intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on its financial condition or results of operation. ASU 2017-08 “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 will be effective for the Company on January 1, 2019, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2017-08 on its financial statements.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2017
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS 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 bank offices, seven in Houston, Texas and two in Central Texas. 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.

GOODWILL AND CORE DEPOSIT INTAN

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS	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 Intangibles (Dollars in thousands) Balance as of January 1, 2016 $ 39,389 $ 5,230 Sale of branch assets — (390 ) Amortization — (785 ) Balance as of December 31, 2016 39,389 4,055 Amortization — (195 ) Balance as of March 31, 2017 $ 39,389 $ 3,860 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 March 31, 2017 , there were no impairments recorded on goodwill and other intangible assets. During the first quarter 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 March 31, 2017 is as follows (dollars in thousands): Remaining 2017 $ 586 2018 781 2019 781 2020 744 2021 484 Thereafter 484 Total $ 3,860

SECURITIES

SECURITIES	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
SECURITIES	SECURITIES The amortized cost and fair value of investment securities were as follows: March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 5,895 $ 268 $ — $ 6,163 Municipal securities 240,248 1,133 (4,830 ) 236,551 Agency mortgage-backed pass-through securities 28,470 243 (388 ) 28,325 Corporate bonds and other 46,105 167 (92 ) 46,180 Total $ 320,718 $ 1,811 $ (5,310 ) $ 317,219 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 5,883 $ 266 $ — $ 6,149 Municipal securities 242,501 956 (5,655 ) 237,802 Agency mortgage-backed pass-through securities 27,496 265 (437 ) 27,324 Corporate bonds and other 45,271 77 (168 ) 45,180 Total $ 321,151 $ 1,564 $ (6,260 ) $ 316,455 As of March 31, 2017 , the Company’s management does not expect to sell any securities classified as available for sale with material unrealized losses, and the Company believes it is more likely than not it 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 March 31, 2017 , 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. The amortized cost and fair value of investment securities at March 31, 2017 , 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 $ 1,400 $ 1,404 Due after one year through five years 81,851 81,891 Due after five years through ten years 89,320 88,330 Due after ten years 119,677 117,269 Subtotal 292,248 288,894 Agency mortgage-backed pass through securities 28,470 28,325 Total $ 320,718 $ 317,219 Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: March 31, 2017 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 160,640 (4,830 ) — — 160,640 (4,830 ) Agency mortgage-backed pass-through securities 14,316 (304 ) 2,757 (84 ) 17,073 (388 ) Corporate bonds and other 22,095 (92 ) — — 22,095 (92 ) Total $ 197,051 $ (5,226 ) $ 2,757 $ (84 ) $ 199,808 $ (5,310 ) December 31, 2016 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 178,876 (5,655 ) — — 178,876 (5,655 ) Agency mortgage-backed pass-through securities 12,520 (347 ) 2,803 (90 ) 15,323 (437 ) Corporate bonds and other 24,629 (168 ) — — 24,629 (168 ) Total $ 216,025 $ (6,170 ) $ 2,803 $ (90 ) $ 218,828 $ (6,260 ) No securities were sold during the three months ended March 31, 2017 and 2016. At March 31, 2017 and December 31, 2016 , 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 shareholders’ equity at such respective dates. The carrying value of pledged securities was $5.0 million at March 31, 2017 and $4.9 million at December 31, 2016 . The securities are pledged to further collateralize letters of credit issued by the Bank but confirmed by another financial institution.

LOANS AND ALLOWANCE FOR LOAN LO

LOANS AND ALLOWANCE FOR LOAN LOSSES	3 Months Ended
	Mar. 31, 2017
Loans and Allowance for Loan Losses [Abstract]
LOANS AND ALLOWANCE FOR LOAN LOSSES	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: March 31, December 31, (Dollars in thousands) Commercial and industrial $ 425,154 $ 416,752 Mortgage warehouse 64,132 67,038 Real estate: Commercial real estate (including multi-family residential) 961,212 891,989 Commercial real estate construction and land development 175,264 159,247 1-4 family residential (including home equity) 250,881 246,987 Residential construction 99,648 98,657 Consumer and other 10,147 10,965 Total loans 1,986,438 1,891,635 Allowance for loan losses (18,687 ) (17,911 ) Loans, net $ 1,967,751 $ 1,873,724 Nonaccrual and Past Due Loans An aging analysis of the recorded investment in past due loans, segregated by class of loans, is as follows: March 31, 2017 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 1,499 $ — $ 1,499 $ 8,933 $ 414,722 $ 425,154 Mortgage warehouse — — — — 64,132 64,132 Real estate: Commercial real estate (including multi-family residential) 1,747 — 1,747 9,726 949,739 961,212 Commercial real estate construction and land development 130 — 130 70 175,064 175,264 1-4 family residential (including home equity) 198 — 198 574 250,109 250,881 Residential construction 248 — 248 — 99,400 99,648 Consumer and other 87 — 87 12 10,048 10,147 Total loans $ 3,909 $ — $ 3,909 $ 19,315 $ 1,963,214 $ 1,986,438 December 31, 2016 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 1,028 $ 911 $ 1,939 $ 3,896 $ 410,917 $ 416,752 Mortgage warehouse — — — — 67,038 67,038 Real estate: Commercial real estate (including multi-family residential) 1,661 — 1,661 11,663 878,665 891,989 Commercial real estate construction and land development 263 — 263 — 158,984 159,247 1-4 family residential (including home equity) 280 — 280 217 246,490 246,987 Residential construction — — — — 98,657 98,657 Consumer and other 125 — 125 12 10,828 10,965 Total loans $ 3,357 $ 911 $ 4,268 $ 15,788 $ 1,871,579 $ 1,891,635 Impaired Loans Impaired loans by class of loans are set forth in the following tables. March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 8,186 $ 8,709 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 16,365 16,450 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 574 574 — Residential construction — — — Consumer and other 12 12 — Total 25,137 25,745 — With an allowance recorded: Commercial and industrial 7,311 7,532 2,228 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 390 390 92 Commercial real estate construction and land development 70 70 4 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other — — — Total 7,771 7,992 2,324 Total: Commercial and industrial 15,497 16,241 2,228 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 16,755 16,840 92 Commercial real estate construction and land development 70 70 4 1-4 family residential (including home equity) 574 574 — Residential construction — — — Consumer and other 12 12 — $ 32,908 $ 33,737 $ 2,324 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,300 $ 5,414 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 11,748 11,833 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 5 5 — Total 17,270 17,469 — With an allowance recorded: Commercial and industrial 3,108 3,328 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 573 573 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other 6 6 6 Total 3,687 3,907 1,654 Total: Commercial and industrial 8,408 8,742 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 12,321 12,406 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 11 11 6 $ 20,957 $ 21,376 $ 1,654 The following table presents average impaired loans and interest recognized on impaired loans for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income (Dollars in thousands) Commercial and industrial $ 15,742 $ 139 $ 4,117 $ 55 Mortgage warehouse — — — — Real estate: Commercial real estate (including multi-family residential) 16,854 77 8,957 58 Commercial real estate construction and land development 72 — — — 1-4 family residential (including home equity) 575 1 939 10 Residential construction — — — — Consumer and other 14 — 55 2 Total $ 33,257 $ 217 $ 14,068 $ 125 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. 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. Based on the most recent analysis performed, the risk category of loans by class of loan at March 31, 2017 is as follows: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 390,673 $ 11,858 $ 2,727 $ 19,896 $ — $ 425,154 Mortgage warehouse 64,132 — — — — 64,132 Real estate: Commercial real estate (including multi-family residential) 899,331 19,428 7,186 35,267 — 961,212 Commercial real estate construction and land development 164,822 5,315 — 5,127 — 175,264 1-4 family residential (including home equity) 245,768 805 1,438 2,870 — 250,881 Residential construction 99,131 — 517 — — 99,648 Consumer and other 9,739 340 4 64 — 10,147 Total loans $ 1,873,596 $ 37,746 $ 11,872 $ 63,224 $ — $ 1,986,438 The following table presents the risk category of loans by class of loan at December 31, 2016 : Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 384,979 $ 11,784 $ 3,344 $ 16,645 $ — $ 416,752 Mortgage warehouse 67,038 — — — — 67,038 Real estate: Commercial real estate (including multi-family residential) 834,781 16,009 6,804 34,395 — 891,989 Commercial real estate construction and land development 149,010 8,124 — 2,113 — 159,247 1-4 family residential (including home equity) 242,208 512 2,069 2,198 — 246,987 Residential construction 97,808 — 415 434 — 98,657 Consumer and other 10,520 364 4 77 — 10,965 Total loans $ 1,786,344 $ 36,793 $ 12,636 $ 55,862 $ — $ 1,891,635 Allowance for Loan Losses The following table presents the activity in the allowance for loan losses by portfolio type for the three months ended March 31, 2017 and March 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses: Balance January 1, 2017 $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 Provision for loan losses 806 — 208 391 (40 ) (11 ) (11 ) 1,343 Charge-offs (627 ) — — — — — — (627 ) Recoveries 46 — — — 10 — 4 60 Net charge-offs (581 ) — — — 10 — 4 (567 ) Balance March 31, 2017 $ 5,284 $ — $ 9,158 $ 1,608 $ 1,846 $ 737 $ 54 $ 18,687 Allowance for loan losses: Balance January 1, 2016 $ 3,644 $ — $ 5,914 $ 1,221 $ 1,432 $ 820 $ 67 $ 13,098 Provision for loan losses 379 — 77 131 42 69 12 710 Charge-offs (1 ) — (86 ) — — — (10 ) (97 ) Recoveries 35 — — — 10 — 1 46 Net charge-offs 34 — (86 ) — 10 — (9 ) (51 ) Balance March 31, 2016 $ 4,057 $ — $ 5,905 $ 1,352 $ 1,484 $ 889 $ 70 $ 13,757 The following table presents the balance of the allowance for loan losses by portfolio type based on the impairment method as of March 31, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses related to: March 31, 2017 Individually evaluated for impairment $ 2,228 $ — $ 92 $ 4 $ — $ — $ — $ 2,324 Collectively evaluated for impairment 3,056 — 9,066 1,604 1,846 737 54 16,363 Total allowance for loan losses $ 5,284 $ — $ 9,158 $ 1,608 $ 1,846 $ 737 $ 54 $ 18,687 December 31, 2016 Individually evaluated for impairment $ 1,543 $ — $ 105 $ — $ — $ — $ 6 $ 1,654 Collectively evaluated for impairment 3,516 — 8,845 1,217 1,876 748 55 16,257 Total allowance for loan losses $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 The following table presents the recorded investment in loans held for investment by portfolio type based on the impairment method as of March 31, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Recorded investment in loans: March 31, 2017 Individually evaluated for impairment $ 15,497 $ — $ 16,755 $ 70 $ 574 $ — $ 12 $ 32,908 Collectively evaluated for impairment 409,657 64,132 944,457 175,194 250,307 99,648 10,135 1,953,530 Total loans evaluated for impairment $ 425,154 $ 64,132 $ 961,212 $ 175,264 $ 250,881 $ 99,648 $ 10,147 $ 1,986,438 December 31, 2016 Individually evaluated for impairment $ 8,408 $ — $ 12,321 $ — $ 217 $ — $ 11 $ 20,957 Collectively evaluated for impairment 408,344 67,038 879,668 159,247 246,770 98,657 10,954 1,870,678 Total loans evaluated for impairment $ 416,752 $ 67,038 $ 891,989 $ 159,247 $ 246,987 $ 98,657 $ 10,965 $ 1,891,635 Troubled Debt Restructurings The following table presents information regarding loans modified in a troubled debt restructuring during the three months ended March 31, 2017 and 2016: As of March 31, 2017 2016 Number of Contracts Pre- Modification of Outstanding Recorded Investment Post- Modification of Outstanding Recorded Investment Number of Contracts Pre- Modification of Outstanding Recorded Investment Post- Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 1 $ 316 $ 316 4 $ 873 $ 873 Mortgage warehouse — — — — — — Real estate: Commercial real estate (including multi-family residential) 1 1,328 1,328 4 5,254 5,254 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) 1 86 86 — — — Residential construction — — — — — — Consumer and other — — — 1 7 7 Total 3 $ 1,730 $ 1,730 9 $ 6,134 $ 6,134 Troubled debt restructurings resulted in a partial charge-off of $395 thousand during the three months ended March 31, 2017. There were no charge-offs resulting from troubled debt restructurings during three months ended March 31, 2016. As of March 31, 2017 and December 31, 2016 , the Company had a recorded investment in troubled debt restructurings of $14.1 million and $12.6 million , respectively. The Company allocated $837 thousand and $879 thousand of specific reserves for troubled debt restructurings at March 31, 2017 and December 31, 2016 , respectively, and did not commit to lend additional amounts on these loans. As of March 31, 2017 and March 31, 2016 , there were no loans modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the three months ended March 31, 2017 and March 31, 2016 , respectively. The modifications primarily related to extending the amortization periods of the loans. Default is determined at 90 or more days past due. The Company did not grant principal reductions on any restructured loans.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE	FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value represents the exchange price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price”, in the principal or most advantageous market available to the entity in an orderly transaction between market participants on the measurement date. Fair Value Hierarchy The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Significant unobservable inputs that reflect management’s judgment and assumptions that market participants would use in pricing an asset or liability that are supported by little or no market activity. The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of March 31, 2017 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets (Dollars in thousands) Cash and cash equivalents $ 184,146 $ 184,146 $ — $ — $ 184,146 Available for sale securities 317,219 — 317,219 — 317,219 Loans held for investment, net of allowance 1,967,751 — — 1,969,375 1,969,375 FHLB stock 19,863 N/A N/A N/A N/A Accrued interest receivable 7,444 — 2,050 5,394 7,444 Financial liabilities Deposits $ 2,012,569 $ — $ 2,011,425 — $ 2,011,425 Accrued interest payable 245 — 245 — 245 Short-term borrowings 75,000 — 75,000 — 75,000 Other borrowed funds 200,569 — 200,302 — 200,302 Subordinated debentures 9,222 — 9,222 — 9,222 As of December 31, 2016 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets (Dollars in thousands) Cash and cash equivalents $ 142,098 $ 142,098 $ — $ — $ 142,098 Available for sale securities 316,455 — 316,455 — 316,455 Loans held for investment, net of allowance 1,873,724 — — 1,872,056 1,872,056 FHLB stock 13,175 N/A N/A N/A N/A Accrued interest receivable 9,007 3 3,616 5,388 9,007 Financial liabilities Deposits $ 1,870,183 $ — $ 1,868,429 $ — $ 1,868,429 Accrued interest payable 285 — 285 — 285 Short-term borrowings 85,000 — 85,000 — 85,000 Other borrowed funds 200,569 — 199,989 — 199,989 Subordinated debentures 9,196 — 9,196 — 9,196 The fair value estimates presented above are based on pertinent information available to management as of the dates indicated. The methods used to determine fair value are described in our audited financial statements which are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The following tables present fair values for assets measured at fair value on a recurring basis: As of March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 6,163 $ — $ 6,163 Municipal securities — 236,551 — 236,551 Agency mortgage-backed pass-through securities — 28,325 — 28,325 Corporate bonds and other — 46,180 — 46,180 Total $ — $ 317,219 $ — $ 317,219 As of December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 6,149 $ — $ 6,149 Municipal securities — 237,802 — 237,802 Agency mortgage-backed pass-through securities — 27,324 — 27,324 Corporate bonds and other — 45,180 — 45,180 Total $ — $ 316,455 $ — $ 316,455 There were no liabilities measured at fair value on a recurring basis as of March 31, 2017 or December 31, 2016 . There were no transfers between levels during the three months ended March 31, 2017 or March 31, 2016 . Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as evidence of impairment. As of March 31, 2017 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 5,304 Commercial real estate (including multi-family residential) — — 298 Commercial real estate construction and land development — — 66 Other real estate owned — — 365 $ — $ — $ 6,033 As of December 31, 2016 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 1,785 Commercial real estate (including multi-family residential) — — 468 Other real estate owned — — 1,503 $ — $ — $ 3,756 Impaired Loans with Specific Allocation of Allowance During the three months ended March 31, 2017 and the year ended December 31, 2016, certain impaired loans were reevaluated and reported at fair value through a specific allocation of the allowance for loan losses. At March 31, 2017 , the total reported fair value of impaired loans of $5.7 million based on collateral valuations utilizing Level 3 valuation inputs had a carrying value of $8.0 million that was reduced by specific allowance allocations totaling $2.3 million . At December 31, 2016, the total reported fair value of impaired loans of $2.3 million based on collateral valuations utilizing Level 3 valuation inputs had a carrying value of $3.9 million that was reduced by specific allowance allocations totaling $1.7 million . Other Real Estate Owned At March 31, 2017 , the balance of other real estate owned included $365 thousand of foreclosed commercial real estate properties recorded as a result of obtaining physical possession of the property. At March 31, 2017 , the recorded investment of commercial real estate land loans secured by non-residential real estate properties for which formal foreclosure proceeds are in process is $41 thousand . The Company had $1.5 million of other real estate owned at December 31, 2016 .

DEPOSITS

DEPOSITS	3 Months Ended
	Mar. 31, 2017
Deposit Liabilities [Abstract]
DEPOSITS	DEPOSITS Time deposits that meet or exceed the Federal Deposit Insurance Corporation Insurance limit of $250 thousand at March 31, 2017 and December 31, 2016 were $199.5 million and $196.5 million , respectively. Scheduled maturities of time deposits for the next five years are as follows (dollars in thousands): Within one year $ 473,222 After one but within two years 183,913 After two but within three years 55,429 After three but within four years 15,896 After four but within five years 36,990 Total $ 765,450

BORROWINGS AND BORROWING CAPACI

BORROWINGS AND BORROWING CAPACITY	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
BORROWINGS AND BORROWING CAPACITY	BORROWINGS AND BORROWING CAPACITY The Company has an available line of credit with the Federal Home Loan Bank (“FHLB”) of Dallas, which allows the Company to borrow on a collateralized basis. FHLB advances are used to manage liquidity as needed. The advances are secured by a blanket lien on certain loans. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. At March 31, 2017 , the Company had a total borrowing capacity of $708.7 million , of which $398.3 million was available and $310.4 million was outstanding. Short-term FHLB advances of $75.0 million were outstanding at March 31, 2017 , at a weighted average interest rate of 0.93% . Long-term FHLB borrowings of $200.0 million were outstanding at March 31, 2017 , at a weighted average interest rate of 0.76% . Of the total long-term FHLB borrowings, $100.0 million will expire in April 2018 and another $100.0 million will expire in May 2018. Letters of credit were $35.4 million at March 31, 2017 , of which $7.3 million will expire in August 2017, $25.0 million will expire in October 2017 and $3.1 million will expire in February 2018. In 2015, the Company borrowed an additional $ 18.0 million under its credit agreement with another financial institution, which was in addition to the $10.1 million of indebtedness incurred under the same credit agreement in 2014. The credit agreement matures in December 2021. The Company used the funds borrowed in 2015 to repay debt that F&M Bancshares owed and used the funds borrowed in 2014 to pay off a previous borrowing with another financial institution that had been entered into during 2013 in conjunction with the Independence Bank acquisition. In October 2015, the Company paid down $ 27.5 million of the credit agreement with a portion of the proceeds from the initial public offering of Allegiance common stock. The credit agreement includes certain restrictive covenants. At March 31, 2017 , the Company believes it is in compliance with its debt covenants and had not been made aware of any noncompliance by the lender. The interest rate on the outstanding debt under the revolving credit agreement is the Prime rate minus 25 basis points, or 3.75% , at March 31, 2017 , and is paid quarterly. Scheduled principal maturities are as follows (dollars in thousands): Remaining 2017 $ — 2018 — 2019 — 2020 — 2021 and thereafter 569 Total $ 569

SUBORDINATED DEBENTURES

SUBORDINATED DEBENTURES	3 Months Ended
	Mar. 31, 2017
Subordinated Borrowings [Abstract]
SUBORDINATED DEBENTURES	SUBORDINATED DEBENTURES On January 1, 2015, the Company acquired F&M Bancshares and assumed Farmers & Merchants Capital Trust II and Farmers & Merchants Capital Trust III. Each of these trusts is a capital or statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s junior subordinated debentures. The preferred trust securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. The Company has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by such trust, provided such trust has funds available for such obligations. Under the provisions of each issue of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. The Company assumed the junior subordinated debentures with an aggregate original principal amount of $11.3 million and a current fair value at March 31, 2017 of $9.2 million . At acquisition, the Company recorded a discount of $2.5 million on the debentures. The difference between the carrying value and contractual balance will be recognized as a yield adjustment over the remaining term for the debentures. At March 31, 2017 , the Company had $11.3 million outstanding in junior subordinated debentures issued to the Company’s unconsolidated subsidiary trusts. The junior subordinated debentures are included in Tier 1 capital under current regulatory guidelines and interpretations. A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at March 31, 2017 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of March 31, 2017 was 1.1347% . (2) All debentures are currently callable.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The amount of the Company’s federal and state income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. For the three months ended March 31, 2017 , income tax expense was $1.5 million compared with $3.1 million for the three months ended March 31, 2016 . The effective income tax rate for the three months ended March 31, 2017 was 20.2% compared to 32.6% for the three months ended March 31, 2016 . The decrease in income tax expense and the effective tax rate year over year was primarily attributable to the excess tax benefit from the exercise of stock options by employees during the first quarter of 2017, which was recognized in income tax expense as a result of the adoption of ASU 2016-09. Additionally, the decrease in income tax expense and the effective tax rate was due to the increase in tax free income from the purchase of additional municipal securities from the prior year. During the three months ended March 31, 2017, the impact on the tax rate due to the excess tax benefit on stock options exercised and the increased tax free income from the purchase of municipal securities was approximately 8.0% and 7.0% , respectively. Interest and penalties related to tax positions are recognized in the period in which they begin accruing or when the entity claims the position that does not meet the minimum statutory thresholds. The Company does not have any uncertain tax positions and does not have any interest and penalties recorded in the income statement for the three months ended March 31, 2017 and 2016. The Company is no longer subject to examination by the U.S. Federal Tax Jurisdiction for the years prior to 2013.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION	STOCK BASED COMPENSATION During 2008, the Company’s Board of Directors and shareholders approved the 2008 Stock Awards and Incentive Plan (the “Plan”) covering certain key employees to purchase shares of the Company’s stock. The Plan was amended in 2015 as the shareholders authorized a maximum aggregate number of shares of stock to be issued of 1,460,000 , any or all of which may be issued through incentive stock options. The Company accounts for stock based employee compensation plans using the fair value-based method of accounting. The Company recognized total stock based compensation expense of $341 thousand and $354 thousand for the three months ended March 31, 2017 and 2016 , respectively. Stock Options Options to purchase a total of 1,257,631 shares of Company stock have been granted as of March 31, 2017 . Under the stock option plan, options are exercisable up to 10 years from the date of the grant and are fully vested 4 years after the date of grant.The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. A summary of the activity in the stock option plan during the three months ended March 31, 2017 is set forth below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Options outstanding, January 1, 2017 935 $ 18.21 6.23 $ 16,773 Options granted 17 32.45 Options exercised (119 ) 17.59 Options forfeited — — Options outstanding, March 31, 2017 833 $ 18.65 6.15 $ 15,457 Options vested and exercisable, March 31, 2017 491 $ 15.93 4.71 $ 10,444 Restricted Stock Awards During 2017 , the Company issued 11,250 shares of restricted stock. The restricted stock shares will vest over a period of 4 years but are considered outstanding at the date of issuance. The Company accounts for restricted stock grants by recording the fair value of the grant as compensation expense over the vesting period. A summary of the activity of the nonvested shares of restricted stock during the three months ended March 31, 2017 is as follows: Number of Shares Weighted Average Grant Date Fair Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2017 24 $ 18.31 Share awards granted 11 32.45 Share awards vested (10 ) 13.32 Unvested share awards forfeited — — Nonvested share awards outstanding, March 31, 2017 25 $ 24.59

OFF-BALANCE SHEET ARRANGEMENTS,

OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES	OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with accounting principles generally accepted in the United States, are not included in the Company’s consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve to varying degrees elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The contractual amounts of financial instruments with off-balance sheet risk are as follows: March 31, December 31, Fixed Rate Variable Rate Fixed Rate Variable Rate (Dollars in thousands) Commitments to extend credit $ 363,604 $ 261,970 $ 353,822 $ 232,551 Standby letters of credit 9,615 1,075 9,423 124 Total $ 373,219 $ 263,045 $ 363,245 $ 232,675 Commitments to make loans are generally made for an approval period of 120 days or fewer. As of March 31, 2017 , the funded fixed rate loan commitments have interest rates ranging from 1.60% to 7.50% with a weighted average maturity and rate of 2.43 years and 5.00% , respectively. Litigation From time to time, the Company is subject to claims and litigation arising in the ordinary course of business. In the opinion of management, the Company is not party to any legal proceedings the resolution of which it believes would have a material adverse effect on the Company’s business, prospects, financial condition, liquidity, results of operation, cash flows or capital levels. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which such claim or litigation is resolved. In addition, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may materially adversely affect the Company’s reputation, even if resolved in its favor. The Company intends to defend itself vigorously against any future claims or litigation.

REGULATORY CAPITAL MATTERS

REGULATORY CAPITAL MATTERS	3 Months Ended
	Mar. 31, 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 March 31, 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 March 31, 2017 and December 31, 2016 : Actual Minimum Required For Capital Adequacy Purposes Minimum Required For Plus Capital To Be Categorized As Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of March 31, 2017 Total Capital (to risk weighted assets) $ 276,836 12.35 % $ 179,356 8.00 % $ 207,380 9.250 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 248,926 11.10 % 100,888 4.50 % 128,912 5.750 % N/A N/A Tier I Capital (to risk weighted assets) 258,148 11.51 % 134,517 6.00 % 162,541 7.250 % N/A N/A Tier I Capital (to average tangible assets) 258,148 10.28 % 100,471 4.00 % 100,471 4.000 % N/A N/A As of December 31, 2016 Total Capital (to risk weighted assets) $ 268,155 12.57 % $ 170,690 8.00 % $ 184,025 8.625 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 241,048 11.30 % 96,013 4.50 % 109,348 5.125 % N/A N/A Tier I Capital (to risk weighted assets) 250,244 11.73 % 128,018 6.00 % 141,353 6.625 % N/A N/A Tier I Capital (to average tangible assets) 250,244 10.35 % 96,708 4.00 % 96,708 4.000 % N/A N/A ALLEGIANCE BANK As of March 31, 2017 Total Capital (to risk weighted assets) $ 253,957 11.33 % $ 179,280 8.00 % $ 207,293 9.250 % $ 224,100 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 235,269 10.50 % 100,845 4.50 % 128,858 5.750 % 145,665 6.50 % Tier I Capital (to risk weighted assets) 235,269 10.50 % 134,460 6.00 % 162,473 7.250 % 179,280 8.00 % Tier I Capital (to average tangible assets) 235,269 9.37 % 100,437 4.00 % 100,437 4.000 % 125,547 5.00 % As of December 31, 2016 Total Capital (to risk weighted assets) $ 247,606 11.61 % $ 170,630 8.00 % $ 183,960 8.625 % $ 213,288 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 229,694 10.77 % 95,979 4.50 % 109,310 5.125 % 138,637 6.50 % Tier I Capital (to risk weighted assets) 229,694 10.77 % 127,973 6.00 % 141,303 6.625 % 170,630 8.00 % Tier I Capital (to average tangible assets) 229,694 9.50 % 96,679 4.00 % 96,679 4.000 % 120,849 5.00 %

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
EARNINGS PER COMMON SHARE	EARNINGS PER COMMON SHARE Diluted earnings per common share is computed using the weighted-average number of common shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. Restricted shares are considered outstanding at the date of grant, accounted for as participating securities and are included in basic and diluted weighted average common shares outstanding. Three Months Ended March 31, 2017 2016 Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share data) Net income attributable to common shareholders $ 6,047 $ 6,355 Basic: Weighted average common shares outstanding 13,021 $ 0.46 12,840 $ 0.49 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 356 127 Total 13,377 $ 0.45 12,967 $ 0.49 There were no antidilutive shares as of March 31, 2017. Stock options for 596 thousand shares were not considered in computing diluted earnings per common share as of March 31, 2016 because they were antidilutive.

NATURE OF OPERATIONS AND SUMM22

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. 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, 2016 . Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 .
Significant Accounting and Reporting Policies	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 in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016 . New Accounting Standards Newly Issued But Not Yet Effective Accounting Standards ASU 2014-09 “Revenue from Contracts with Customers (Topic 606).” 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 effective for the Company beginning on January 1, 2018, with retrospective application to each prior reporting period presented. The Company expects to adopt ASU 2014-09 in the first quarter 2018 using the modified retrospective approach, which includes presenting the cumulative effect of initial application along with supplementary disclosures. The Company is evaluating the full effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures, however, adoption of the ASU is not expected to have a significant impact. The Company’s primary sources of revenues are derived from interest and dividends earned on loans, investment securities and other financial instruments that are not within the scope of ASU 2014-09. ASU 2016-02 “Leases (Topic 842)." 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. Early application of this ASU is permitted for all entities. Adoption of ASU 2016-02 is not expected to have a material impact on the Company’s financial statements. The Company leases certain properties and equipment under operating leases that will result in the recognition of lease assets and lease liabilities on the Company’s balance sheet under the ASU. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” 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. ASU 2016-13 is effective for the Company on January 1, 2020 and must be applied using the modified retrospective approach with limited exceptions. Early adoption is permitted for fiscal years, and interim periods within those years, beginning after December 15, 2018. The Company is currently assessing the impact that the adoption of this standard will have on the financial condition and results of operations of the Company. ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. Among other things, the update clarifies the appropriate classification for proceeds from settlement of bank owned life insurance (BOLI) policies. Based on preliminary assessments, the Company expects to change the classification of proceeds from settlement of BOLI policies from operating activities to investing activities. Other changes in classification resulting from this update are not expected to be significant. ASU 2016-15 is effective for the Company on January 1, 2018 and must be applied using the retrospective approach. Early adoption is permitted. ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” ASU 2017-04 intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017-04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on its financial condition or results of operation. ASU 2017-08 “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. Under prior guidance, entities were generally required to amortize premiums on individual, non-pooled callable debt securities as a yield adjustment over the contractual life of the security. ASU 2017-08 does not change the accounting for callable debt securities held at a discount. ASU 2017-08 will be effective for the Company on January 1, 2019, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2017-08 on its financial statements.

GOODWILL AND CORE DEPOSIT INT23

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance as of January 1, 2016 $ 39,389 $ 5,230 Sale of branch assets — (390 ) Amortization — (785 ) Balance as of December 31, 2016 39,389 4,055 Amortization — (195 ) Balance as of March 31, 2017 $ 39,389 $ 3,860
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The estimated aggregate future amortization expense for core deposit intangible assets remaining as of March 31, 2017 is as follows (dollars in thousands): Remaining 2017 $ 586 2018 781 2019 781 2020 744 2021 484 Thereafter 484 Total $ 3,860

SECURITIES (Tables)

SECURITIES (Tables)	3 Months Ended
	Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]
Available-for-sale Securities	The amortized cost and fair value of investment securities were as follows: March 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 5,895 $ 268 $ — $ 6,163 Municipal securities 240,248 1,133 (4,830 ) 236,551 Agency mortgage-backed pass-through securities 28,470 243 (388 ) 28,325 Corporate bonds and other 46,105 167 (92 ) 46,180 Total $ 320,718 $ 1,811 $ (5,310 ) $ 317,219 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale U.S. Government and agency securities $ 5,883 $ 266 $ — $ 6,149 Municipal securities 242,501 956 (5,655 ) 237,802 Agency mortgage-backed pass-through securities 27,496 265 (437 ) 27,324 Corporate bonds and other 45,271 77 (168 ) 45,180 Total $ 321,151 $ 1,564 $ (6,260 ) $ 316,455
Investments Classified by Contractual Maturity Date	The amortized cost and fair value of investment securities at March 31, 2017 , 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 $ 1,400 $ 1,404 Due after one year through five years 81,851 81,891 Due after five years through ten years 89,320 88,330 Due after ten years 119,677 117,269 Subtotal 292,248 288,894 Agency mortgage-backed pass through securities 28,470 28,325 Total $ 320,718 $ 317,219
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: March 31, 2017 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 160,640 (4,830 ) — — 160,640 (4,830 ) Agency mortgage-backed pass-through securities 14,316 (304 ) 2,757 (84 ) 17,073 (388 ) Corporate bonds and other 22,095 (92 ) — — 22,095 (92 ) Total $ 197,051 $ (5,226 ) $ 2,757 $ (84 ) $ 199,808 $ (5,310 ) December 31, 2016 Less than 12 Months More than 12 Months Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale U.S. Government and agency securities $ — $ — $ — $ — $ — $ — Municipal securities 178,876 (5,655 ) — — 178,876 (5,655 ) Agency mortgage-backed pass-through securities 12,520 (347 ) 2,803 (90 ) 15,323 (437 ) Corporate bonds and other 24,629 (168 ) — — 24,629 (168 ) Total $ 216,025 $ (6,170 ) $ 2,803 $ (90 ) $ 218,828 $ (6,260 )

LOANS AND ALLOWANCE FOR LOAN 25

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)	3 Months Ended
	Mar. 31, 2017
Loans and Allowance for Loan Losses [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable	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: March 31, December 31, (Dollars in thousands) Commercial and industrial $ 425,154 $ 416,752 Mortgage warehouse 64,132 67,038 Real estate: Commercial real estate (including multi-family residential) 961,212 891,989 Commercial real estate construction and land development 175,264 159,247 1-4 family residential (including home equity) 250,881 246,987 Residential construction 99,648 98,657 Consumer and other 10,147 10,965 Total loans 1,986,438 1,891,635 Allowance for loan losses (18,687 ) (17,911 ) Loans, net $ 1,967,751 $ 1,873,724
Past Due Financing Receivables	An aging analysis of the recorded investment in past due loans, segregated by class of loans, is as follows: March 31, 2017 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 1,499 $ — $ 1,499 $ 8,933 $ 414,722 $ 425,154 Mortgage warehouse — — — — 64,132 64,132 Real estate: Commercial real estate (including multi-family residential) 1,747 — 1,747 9,726 949,739 961,212 Commercial real estate construction and land development 130 — 130 70 175,064 175,264 1-4 family residential (including home equity) 198 — 198 574 250,109 250,881 Residential construction 248 — 248 — 99,400 99,648 Consumer and other 87 — 87 12 10,048 10,147 Total loans $ 3,909 $ — $ 3,909 $ 19,315 $ 1,963,214 $ 1,986,438 December 31, 2016 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Commercial and industrial $ 1,028 $ 911 $ 1,939 $ 3,896 $ 410,917 $ 416,752 Mortgage warehouse — — — — 67,038 67,038 Real estate: Commercial real estate (including multi-family residential) 1,661 — 1,661 11,663 878,665 891,989 Commercial real estate construction and land development 263 — 263 — 158,984 159,247 1-4 family residential (including home equity) 280 — 280 217 246,490 246,987 Residential construction — — — — 98,657 98,657 Consumer and other 125 — 125 12 10,828 10,965 Total loans $ 3,357 $ 911 $ 4,268 $ 15,788 $ 1,871,579 $ 1,891,635
Impaired Financing Receivables	Impaired loans by class of loans are set forth in the following tables. March 31, 2017 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 8,186 $ 8,709 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 16,365 16,450 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 574 574 — Residential construction — — — Consumer and other 12 12 — Total 25,137 25,745 — With an allowance recorded: Commercial and industrial 7,311 7,532 2,228 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 390 390 92 Commercial real estate construction and land development 70 70 4 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other — — — Total 7,771 7,992 2,324 Total: Commercial and industrial 15,497 16,241 2,228 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 16,755 16,840 92 Commercial real estate construction and land development 70 70 4 1-4 family residential (including home equity) 574 574 — Residential construction — — — Consumer and other 12 12 — $ 32,908 $ 33,737 $ 2,324 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 5,300 $ 5,414 $ — Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 11,748 11,833 — Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 5 5 — Total 17,270 17,469 — With an allowance recorded: Commercial and industrial 3,108 3,328 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 573 573 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — — Residential construction — — — Consumer and other 6 6 6 Total 3,687 3,907 1,654 Total: Commercial and industrial 8,408 8,742 1,543 Mortgage warehouse — — — Real estate: Commercial real estate (including multi-family residential) 12,321 12,406 105 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) 217 217 — Residential construction — — — Consumer and other 11 11 6 $ 20,957 $ 21,376 $ 1,654 The following table presents average impaired loans and interest recognized on impaired loans for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income (Dollars in thousands) Commercial and industrial $ 15,742 $ 139 $ 4,117 $ 55 Mortgage warehouse — — — — Real estate: Commercial real estate (including multi-family residential) 16,854 77 8,957 58 Commercial real estate construction and land development 72 — — — 1-4 family residential (including home equity) 575 1 939 10 Residential construction — — — — Consumer and other 14 — 55 2 Total $ 33,257 $ 217 $ 14,068 $ 125
Financing Receivable Credit Quality Indicators	Based on the most recent analysis performed, the risk category of loans by class of loan at March 31, 2017 is as follows: Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 390,673 $ 11,858 $ 2,727 $ 19,896 $ — $ 425,154 Mortgage warehouse 64,132 — — — — 64,132 Real estate: Commercial real estate (including multi-family residential) 899,331 19,428 7,186 35,267 — 961,212 Commercial real estate construction and land development 164,822 5,315 — 5,127 — 175,264 1-4 family residential (including home equity) 245,768 805 1,438 2,870 — 250,881 Residential construction 99,131 — 517 — — 99,648 Consumer and other 9,739 340 4 64 — 10,147 Total loans $ 1,873,596 $ 37,746 $ 11,872 $ 63,224 $ — $ 1,986,438 The following table presents the risk category of loans by class of loan at December 31, 2016 : Pass Watch Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial and industrial $ 384,979 $ 11,784 $ 3,344 $ 16,645 $ — $ 416,752 Mortgage warehouse 67,038 — — — — 67,038 Real estate: Commercial real estate (including multi-family residential) 834,781 16,009 6,804 34,395 — 891,989 Commercial real estate construction and land development 149,010 8,124 — 2,113 — 159,247 1-4 family residential (including home equity) 242,208 512 2,069 2,198 — 246,987 Residential construction 97,808 — 415 434 — 98,657 Consumer and other 10,520 364 4 77 — 10,965 Total loans $ 1,786,344 $ 36,793 $ 12,636 $ 55,862 $ — $ 1,891,635
Allowance for Credit Losses on Financing Receivables	The following table presents the activity in the allowance for loan losses by portfolio type for the three months ended March 31, 2017 and March 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses: Balance January 1, 2017 $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 Provision for loan losses 806 — 208 391 (40 ) (11 ) (11 ) 1,343 Charge-offs (627 ) — — — — — — (627 ) Recoveries 46 — — — 10 — 4 60 Net charge-offs (581 ) — — — 10 — 4 (567 ) Balance March 31, 2017 $ 5,284 $ — $ 9,158 $ 1,608 $ 1,846 $ 737 $ 54 $ 18,687 Allowance for loan losses: Balance January 1, 2016 $ 3,644 $ — $ 5,914 $ 1,221 $ 1,432 $ 820 $ 67 $ 13,098 Provision for loan losses 379 — 77 131 42 69 12 710 Charge-offs (1 ) — (86 ) — — — (10 ) (97 ) Recoveries 35 — — — 10 — 1 46 Net charge-offs 34 — (86 ) — 10 — (9 ) (51 ) Balance March 31, 2016 $ 4,057 $ — $ 5,905 $ 1,352 $ 1,484 $ 889 $ 70 $ 13,757 The following table presents the balance of the allowance for loan losses by portfolio type based on the impairment method as of March 31, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for loan losses related to: March 31, 2017 Individually evaluated for impairment $ 2,228 $ — $ 92 $ 4 $ — $ — $ — $ 2,324 Collectively evaluated for impairment 3,056 — 9,066 1,604 1,846 737 54 16,363 Total allowance for loan losses $ 5,284 $ — $ 9,158 $ 1,608 $ 1,846 $ 737 $ 54 $ 18,687 December 31, 2016 Individually evaluated for impairment $ 1,543 $ — $ 105 $ — $ — $ — $ 6 $ 1,654 Collectively evaluated for impairment 3,516 — 8,845 1,217 1,876 748 55 16,257 Total allowance for loan losses $ 5,059 $ — $ 8,950 $ 1,217 $ 1,876 $ 748 $ 61 $ 17,911 The following table presents the recorded investment in loans held for investment by portfolio type based on the impairment method as of March 31, 2017 and December 31, 2016 : Commercial and industrial Mortgage warehouse Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Recorded investment in loans: March 31, 2017 Individually evaluated for impairment $ 15,497 $ — $ 16,755 $ 70 $ 574 $ — $ 12 $ 32,908 Collectively evaluated for impairment 409,657 64,132 944,457 175,194 250,307 99,648 10,135 1,953,530 Total loans evaluated for impairment $ 425,154 $ 64,132 $ 961,212 $ 175,264 $ 250,881 $ 99,648 $ 10,147 $ 1,986,438 December 31, 2016 Individually evaluated for impairment $ 8,408 $ — $ 12,321 $ — $ 217 $ — $ 11 $ 20,957 Collectively evaluated for impairment 408,344 67,038 879,668 159,247 246,770 98,657 10,954 1,870,678 Total loans evaluated for impairment $ 416,752 $ 67,038 $ 891,989 $ 159,247 $ 246,987 $ 98,657 $ 10,965 $ 1,891,635
Troubled Debt Restructurings on Financing Receivables	The following table presents information regarding loans modified in a troubled debt restructuring during the three months ended March 31, 2017 and 2016: As of March 31, 2017 2016 Number of Contracts Pre- Modification of Outstanding Recorded Investment Post- Modification of Outstanding Recorded Investment Number of Contracts Pre- Modification of Outstanding Recorded Investment Post- Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 1 $ 316 $ 316 4 $ 873 $ 873 Mortgage warehouse — — — — — — Real estate: Commercial real estate (including multi-family residential) 1 1,328 1,328 4 5,254 5,254 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) 1 86 86 — — — Residential construction — — — — — — Consumer and other — — — 1 7 7 Total 3 $ 1,730 $ 1,730 9 $ 6,134 $ 6,134

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of March 31, 2017 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets (Dollars in thousands) Cash and cash equivalents $ 184,146 $ 184,146 $ — $ — $ 184,146 Available for sale securities 317,219 — 317,219 — 317,219 Loans held for investment, net of allowance 1,967,751 — — 1,969,375 1,969,375 FHLB stock 19,863 N/A N/A N/A N/A Accrued interest receivable 7,444 — 2,050 5,394 7,444 Financial liabilities Deposits $ 2,012,569 $ — $ 2,011,425 — $ 2,011,425 Accrued interest payable 245 — 245 — 245 Short-term borrowings 75,000 — 75,000 — 75,000 Other borrowed funds 200,569 — 200,302 — 200,302 Subordinated debentures 9,222 — 9,222 — 9,222 As of December 31, 2016 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Financial assets (Dollars in thousands) Cash and cash equivalents $ 142,098 $ 142,098 $ — $ — $ 142,098 Available for sale securities 316,455 — 316,455 — 316,455 Loans held for investment, net of allowance 1,873,724 — — 1,872,056 1,872,056 FHLB stock 13,175 N/A N/A N/A N/A Accrued interest receivable 9,007 3 3,616 5,388 9,007 Financial liabilities Deposits $ 1,870,183 $ — $ 1,868,429 $ — $ 1,868,429 Accrued interest payable 285 — 285 — 285 Short-term borrowings 85,000 — 85,000 — 85,000 Other borrowed funds 200,569 — 199,989 — 199,989 Subordinated debentures 9,196 — 9,196 — 9,196
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The following tables present fair values for assets measured at fair value on a recurring basis: As of March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 6,163 $ — $ 6,163 Municipal securities — 236,551 — 236,551 Agency mortgage-backed pass-through securities — 28,325 — 28,325 Corporate bonds and other — 46,180 — 46,180 Total $ — $ 317,219 $ — $ 317,219 As of December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Available for sale securities: U.S. Government and agency securities $ — $ 6,149 $ — $ 6,149 Municipal securities — 237,802 — 237,802 Agency mortgage-backed pass-through securities — 27,324 — 27,324 Corporate bonds and other — 45,180 — 45,180 Total $ — $ 316,455 $ — $ 316,455
Fair Value Measurements, Nonrecurring	Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances such as evidence of impairment. As of March 31, 2017 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 5,304 Commercial real estate (including multi-family residential) — — 298 Commercial real estate construction and land development — — 66 Other real estate owned — — 365 $ — $ — $ 6,033 As of December 31, 2016 Level 1 Level 2 Level 3 (Dollars in thousands) Impaired loans: Commercial and industrial $ — $ — $ 1,785 Commercial real estate (including multi-family residential) — — 468 Other real estate owned — — 1,503 $ — $ — $ 3,756

DEPOSITS (Tables)

DEPOSITS (Tables)	3 Months Ended
	Mar. 31, 2017
Deposit Liabilities [Abstract]
Schedule of Maturities of Time Deposits	Scheduled maturities of time deposits for the next five years are as follows (dollars in thousands): Within one year $ 473,222 After one but within two years 183,913 After two but within three years 55,429 After three but within four years 15,896 After four but within five years 36,990 Total $ 765,450

BORROWINGS AND BORROWING CAPA28

BORROWINGS AND BORROWING CAPACITY (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Schedule of Maturities of Long-term Debt	Scheduled principal maturities are as follows (dollars in thousands): Remaining 2017 $ — 2018 — 2019 — 2020 — 2021 and thereafter 569 Total $ 569

SUBORDINATED DEBENTURES (Tables

SUBORDINATED DEBENTURES (Tables)	3 Months Ended
	Mar. 31, 2017
Subordinated Borrowings [Abstract]
Schedule of Subordinated Borrowing	A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at March 31, 2017 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of March 31, 2017 was 1.1347% . (2) All debentures are currently callable.

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity	A summary of the activity in the stock option plan during the three months ended March 31, 2017 is set forth below: Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Options outstanding, January 1, 2017 935 $ 18.21 6.23 $ 16,773 Options granted 17 32.45 Options exercised (119 ) 17.59 Options forfeited — — Options outstanding, March 31, 2017 833 $ 18.65 6.15 $ 15,457 Options vested and exercisable, March 31, 2017 491 $ 15.93 4.71 $ 10,444
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	A summary of the activity of the nonvested shares of restricted stock during the three months ended March 31, 2017 is as follows: Number of Shares Weighted Average Grant Date Fair Value (Shares in thousands) Nonvested share awards outstanding, January 1, 2017 24 $ 18.31 Share awards granted 11 32.45 Share awards vested (10 ) 13.32 Unvested share awards forfeited — — Nonvested share awards outstanding, March 31, 2017 25 $ 24.59

OFF-BALANCE SHEET ARRANGEMENT31

OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Fair Value, Off-balance Sheet Risks	The contractual amounts of financial instruments with off-balance sheet risk are as follows: March 31, December 31, Fixed Rate Variable Rate Fixed Rate Variable Rate (Dollars in thousands) Commitments to extend credit $ 363,604 $ 261,970 $ 353,822 $ 232,551 Standby letters of credit 9,615 1,075 9,423 124 Total $ 373,219 $ 263,045 $ 363,245 $ 232,675

REGULATORY CAPITAL MATTERS (Tab

REGULATORY CAPITAL MATTERS (Tables)	3 Months Ended
	Mar. 31, 2017
Banking and Thrift [Abstract]
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations	The following is a summary of the Company’s and the Bank’s actual and required capital ratios at March 31, 2017 and December 31, 2016 : Actual Minimum Required For Capital Adequacy Purposes Minimum Required For Plus Capital To Be Categorized As Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of March 31, 2017 Total Capital (to risk weighted assets) $ 276,836 12.35 % $ 179,356 8.00 % $ 207,380 9.250 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 248,926 11.10 % 100,888 4.50 % 128,912 5.750 % N/A N/A Tier I Capital (to risk weighted assets) 258,148 11.51 % 134,517 6.00 % 162,541 7.250 % N/A N/A Tier I Capital (to average tangible assets) 258,148 10.28 % 100,471 4.00 % 100,471 4.000 % N/A N/A As of December 31, 2016 Total Capital (to risk weighted assets) $ 268,155 12.57 % $ 170,690 8.00 % $ 184,025 8.625 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 241,048 11.30 % 96,013 4.50 % 109,348 5.125 % N/A N/A Tier I Capital (to risk weighted assets) 250,244 11.73 % 128,018 6.00 % 141,353 6.625 % N/A N/A Tier I Capital (to average tangible assets) 250,244 10.35 % 96,708 4.00 % 96,708 4.000 % N/A N/A ALLEGIANCE BANK As of March 31, 2017 Total Capital (to risk weighted assets) $ 253,957 11.33 % $ 179,280 8.00 % $ 207,293 9.250 % $ 224,100 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 235,269 10.50 % 100,845 4.50 % 128,858 5.750 % 145,665 6.50 % Tier I Capital (to risk weighted assets) 235,269 10.50 % 134,460 6.00 % 162,473 7.250 % 179,280 8.00 % Tier I Capital (to average tangible assets) 235,269 9.37 % 100,437 4.00 % 100,437 4.000 % 125,547 5.00 % As of December 31, 2016 Total Capital (to risk weighted assets) $ 247,606 11.61 % $ 170,630 8.00 % $ 183,960 8.625 % $ 213,288 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 229,694 10.77 % 95,979 4.50 % 109,310 5.125 % 138,637 6.50 % Tier I Capital (to risk weighted assets) 229,694 10.77 % 127,973 6.00 % 141,303 6.625 % 170,630 8.00 % Tier I Capital (to average tangible assets) 229,694 9.50 % 96,679 4.00 % 96,679 4.000 % 120,849 5.00 %

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Restricted shares are considered outstanding at the date of grant, accounted for as participating securities and are included in basic and diluted weighted average common shares outstanding. Three Months Ended March 31, 2017 2016 Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share data) Net income attributable to common shareholders $ 6,047 $ 6,355 Basic: Weighted average common shares outstanding 13,021 $ 0.46 12,840 $ 0.49 Diluted: Add incremental shares for: Dilutive effect of stock option exercises 356 127 Total 13,377 $ 0.45 12,967 $ 0.49

NATURE OF OPERATIONS AND SUMM34

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details)	Mar. 31, 2017office
Accounting Policies [Abstract]
Number of offices in which entity operates	16
Number of loan production offices in which entity operates	1

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)	Mar. 31, 2016USD ($)branch	Jan. 01, 2015branch
Business Acquisition [Line Items]
Gain on sale of branch assets | $	$ 0	$ 2,050
Acquisition of F&M
Business Acquisition [Line Items]
Proceeds from sale of loans receivable | $		18,200
Proceeds for sale of deposits | $		26,600
Gain on sale of branch assets | $		$ 2,100
Disposed of by Sale
Business Acquisition [Line Items]
Number of branches agreed to be sold | branch		2
Enterprise
Business Acquisition [Line Items]
Number of branches | branch			9
Enterprise | Houston, Texas
Business Acquisition [Line Items]
Number of branches | branch			7
Enterprise | Central Texas
Business Acquisition [Line Items]
Number of branches | branch			2

GOODWILL AND CORE DEPOSIT INT36

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Narrative, Acquisitions (Details)	Mar. 31, 2017USD ($)
Acquisition of F&M
Business Acquisition [Line Items]
Goodwill impairment	$ 0

GOODWILL AND CORE DEPOSIT INT37

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Narrative, Dispositions (Details)	Mar. 31, 2016branch
Disposed of by Sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of branches agreed to be sold	2

GOODWILL AND CORE DEPOSIT INT38

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill and Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Goodwill
Balance, beginning	$ 39,389	$ 39,389	$ 39,389
Balance, ending	39,389		39,389
Core Deposit Intangibles
Balance, beginning	4,055
Amortization	(195)	(199)
Balance, ending	3,860		4,055
Core Deposit Intangibles
Core Deposit Intangibles
Balance, beginning	4,055	$ 5,230	5,230
Sale of branch assets			(390)
Amortization	(195)		(785)
Balance, ending	$ 3,860		$ 4,055

GOODWILL AND CORE DEPOSIT INT39

GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining 2,017	$ 586
2,018	781
2,019	781
2,020	744
2,021	484
Thereafter	484
Total	$ 3,860	$ 4,055

SECURITIES - Narrative (Details

SECURITIES - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Security owned and pledged as collateral	$ 5	$ 4.9

SECURITIES - Amortized Cost and

SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 320,718	$ 321,151
Gross Unrealized Gains	1,811	1,564
Gross Unrealized Losses	(5,310)	(6,260)
Fair Value	317,219	316,455
U.S. Government and agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	5,895	5,883
Gross Unrealized Gains	268	266
Gross Unrealized Losses	0	0
Fair Value	6,163	6,149
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	240,248	242,501
Gross Unrealized Gains	1,133	956
Gross Unrealized Losses	(4,830)	(5,655)
Fair Value	236,551	237,802
Agency mortgage-backed pass-through securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	28,470	27,496
Gross Unrealized Gains	243	265
Gross Unrealized Losses	(388)	(437)
Fair Value	28,325	27,324
Corporate bonds and other
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	46,105	45,271
Gross Unrealized Gains	167	77
Gross Unrealized Losses	(92)	(168)
Fair Value	$ 46,180	$ 45,180

SECURITIES - Amortized Cost a42

SECURITIES - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Amortized Cost
Due in one year or less	$ 1,400
Due after one year through five years	81,851
Due after five years through ten years	89,320
Due after ten years	119,677
Subtotal	292,248
Agency mortgage-backed pass through securities	28,470
Total	320,718
Fair Value
Due in one year or less	1,404
Due after one year through five years	81,891
Due after five years through ten years	88,330
Due after ten years	117,269
Subtotal	288,894
Agency mortgage-backed pass through securities	28,325
Total	$ 317,219	$ 316,455

SECURITIES - Securities in a Co

SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value	$ 197,051	$ 216,025
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(5,226)	(6,170)
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value	2,757	2,803
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses	(84)	(90)
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value	199,808	218,828
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses	(5,310)	(6,260)
U.S. Government and agency securities
Schedule of Available-for-sale Securities [Line Items]
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value	0	0
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	0	0
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value	0	0
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses	0	0
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value	0	0
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses	0	0
Municipal securities
Schedule of Available-for-sale Securities [Line Items]
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value	160,640	178,876
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(4,830)	(5,655)
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value	0	0
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses	0	0
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value	160,640	178,876
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses	(4,830)	(5,655)
Agency mortgage-backed pass-through securities
Schedule of Available-for-sale Securities [Line Items]
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value	14,316	12,520
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(304)	(347)
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value	2,757	2,803
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses	(84)	(90)
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value	17,073	15,323
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses	(388)	(437)
Corporate bonds and other
Schedule of Available-for-sale Securities [Line Items]
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value	22,095	24,629
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses	(92)	(168)
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value	0	0
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses	0	0
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value	22,095	24,629
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses	$ (92)	$ (168)

LOANS AND ALLOWANCE FOR LOAN 44

LOANS AND ALLOWANCE FOR LOAN LOSSES - Narrative (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)loan	Mar. 31, 2016USD ($)loan	Dec. 31, 2016USD ($)
Loans and Allowance for Loan Losses [Abstract]
Troubled debt restructuring, write-down	$ 395	$ 0
Recorded investment	14,100		$ 12,600
Change in method of calculating impairment	$ 837		$ 879
Number of contracts | loan	0	0

LOANS AND ALLOWANCE FOR LOAN 45

LOANS AND ALLOWANCE FOR LOAN LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	$ 1,986,438	$ 1,891,635
Allowance for loan losses	(18,687)	(17,911)	$ (13,757)	$ (13,098)
Loans, net	1,967,751	1,873,724
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	425,154	416,752
Allowance for loan losses	(5,284)	(5,059)	(4,057)	(3,644)
Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	64,132	67,038
Allowance for loan losses	0	0	0	0
Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	961,212	891,989
Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	175,264	159,247
Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	250,881	246,987
Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	99,648	98,657
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	10,147	10,965
Allowance for loan losses	$ (54)	$ (61)	$ (70)	$ (67)

LOANS AND ALLOWANCE FOR LOAN 46

LOANS AND ALLOWANCE FOR LOAN LOSSES - Aging Analysis of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	$ 3,909	$ 4,268
Nonaccrual Loans	19,315	15,788
Current Loans	1,963,214	1,871,579
Total loans evaluated for impairment	1,986,438	1,891,635
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	1,499	1,939
Nonaccrual Loans	8,933	3,896
Current Loans	414,722	410,917
Total loans evaluated for impairment	425,154	416,752
Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	0
Nonaccrual Loans	0	0
Current Loans	64,132	67,038
Total loans evaluated for impairment	64,132	67,038
Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	1,747	1,661
Nonaccrual Loans	9,726	11,663
Current Loans	949,739	878,665
Total loans evaluated for impairment	961,212	891,989
Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	130	263
Nonaccrual Loans	70	0
Current Loans	175,064	158,984
Total loans evaluated for impairment	175,264	159,247
Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	198	280
Nonaccrual Loans	574	217
Current Loans	250,109	246,490
Total loans evaluated for impairment	250,881	246,987
Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	248	0
Nonaccrual Loans	0	0
Current Loans	99,400	98,657
Total loans evaluated for impairment	99,648	98,657
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	87	125
Nonaccrual Loans	12	12
Current Loans	10,048	10,828
Total loans evaluated for impairment	10,147	10,965
Financing Receivables, 30 to 89 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	3,909	3,357
Financing Receivables, 30 to 89 Days Past Due | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	1,499	1,028
Financing Receivables, 30 to 89 Days Past Due | Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	0
Financing Receivables, 30 to 89 Days Past Due | Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	1,747	1,661
Financing Receivables, 30 to 89 Days Past Due | Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	130	263
Financing Receivables, 30 to 89 Days Past Due | Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	198	280
Financing Receivables, 30 to 89 Days Past Due | Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	248	0
Financing Receivables, 30 to 89 Days Past Due | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	87	125
Financing Receivables, Equal to Greater than 90 Days Past Due
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	911
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	911
Financing Receivables, Equal to Greater than 90 Days Past Due | Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	0	0
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans Past Due and Still Accruing	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 47

LOANS AND ALLOWANCE FOR LOAN LOSSES - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
With no related allowance recorded:
Recorded investment with no related allowance recorded	$ 25,137	$ 17,270
Unpaid principal balance with no related allowance recorded	25,745	17,469
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	7,771	3,687
Impaired financing receivable, with related allowance, unpaid principal balance	7,992	3,907
Related Allowance	2,324	1,654
Total:
Recorded Investment	32,908	20,957
Unpaid Principal Balance	33,737	21,376
Related Allowance	2,324	1,654
Commercial and industrial
With no related allowance recorded:
Recorded investment with no related allowance recorded	8,186	5,300
Unpaid principal balance with no related allowance recorded	8,709	5,414
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	7,311	3,108
Impaired financing receivable, with related allowance, unpaid principal balance	7,532	3,328
Related Allowance	2,228	1,543
Total:
Recorded Investment	15,497	8,408
Unpaid Principal Balance	16,241	8,742
Related Allowance	2,228	1,543
Mortgage warehouse
With no related allowance recorded:
Recorded investment with no related allowance recorded	0	0
Unpaid principal balance with no related allowance recorded	0	0
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	0	0
Impaired financing receivable, with related allowance, unpaid principal balance	0	0
Related Allowance	0	0
Total:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Real estate | Commercial real estate (including multi-family residential)
With no related allowance recorded:
Recorded investment with no related allowance recorded	16,365	11,748
Unpaid principal balance with no related allowance recorded	16,450	11,833
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	390	573
Impaired financing receivable, with related allowance, unpaid principal balance	390	573
Related Allowance	92	105
Total:
Recorded Investment	16,755	12,321
Unpaid Principal Balance	16,840	12,406
Related Allowance	92	105
Real estate | Commercial real estate construction and land development
With no related allowance recorded:
Recorded investment with no related allowance recorded	0	0
Unpaid principal balance with no related allowance recorded	0	0
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	70	0
Impaired financing receivable, with related allowance, unpaid principal balance	70	0
Related Allowance	4	0
Total:
Recorded Investment	70	0
Unpaid Principal Balance	70	0
Related Allowance	4	0
Real estate | 1-4 family residential (including home equity)
With no related allowance recorded:
Recorded investment with no related allowance recorded	574	217
Unpaid principal balance with no related allowance recorded	574	217
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	0	0
Impaired financing receivable, with related allowance, unpaid principal balance	0	0
Related Allowance	0	0
Total:
Recorded Investment	574	217
Unpaid Principal Balance	574	217
Related Allowance	0	0
Real estate | Residential construction
With no related allowance recorded:
Recorded investment with no related allowance recorded	0	0
Unpaid principal balance with no related allowance recorded	0	0
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	0	0
Impaired financing receivable, with related allowance, unpaid principal balance	0	0
Related Allowance	0	0
Total:
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Consumer and other
With no related allowance recorded:
Recorded investment with no related allowance recorded	12	5
Unpaid principal balance with no related allowance recorded	12	5
With an allowance recorded:
Impaired financing receivable, with related allowance, recorded investment	0	6
Impaired financing receivable, with related allowance, unpaid principal balance	0	6
Related Allowance	0	6
Total:
Recorded Investment	12	11
Unpaid Principal Balance	12	11
Related Allowance	$ 0	$ 6

LOANS AND ALLOWANCE FOR LOAN 48

LOANS AND ALLOWANCE FOR LOAN LOSSES - Average Impaired Loans and Interest Recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	$ 33,257	$ 14,068
Interest Income Recognized	217	125
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	15,742	4,117
Interest Income Recognized	139	55
Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	16,854	8,957
Interest Income Recognized	77	58
Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	72	0
Interest Income Recognized	0	0
Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	575	939
Interest Income Recognized	1	10
Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Average Recorded Investment	14	55
Interest Income Recognized	$ 0	$ 2

LOANS AND ALLOWANCE FOR LOAN 49

LOANS AND ALLOWANCE FOR LOAN LOSSES - Risk Category of Loans by Class (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	$ 1,986,438	$ 1,891,635
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	425,154	416,752
Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	64,132	67,038
Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	961,212	891,989
Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	175,264	159,247
Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	250,881	246,987
Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	99,648	98,657
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	10,147	10,965
Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	1,873,596	1,786,344
Pass | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	390,673	384,979
Pass | Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	64,132	67,038
Pass | Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	899,331	834,781
Pass | Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	164,822	149,010
Pass | Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	245,768	242,208
Pass | Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	99,131	97,808
Pass | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	9,739	10,520
Watch
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	37,746	36,793
Watch | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	11,858	11,784
Watch | Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Watch | Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	19,428	16,009
Watch | Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	5,315	8,124
Watch | Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	805	512
Watch | Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Watch | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	340	364
Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	11,872	12,636
Special Mention | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0
Special Mention | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	2,727	3,344
Special Mention | Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Special Mention | Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	7,186	6,804
Special Mention | Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment		0
Special Mention | Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	1,438	2,069
Special Mention | Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	517	415
Special Mention | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	4	4
Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	63,224	55,862
Substandard | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	19,896	16,645
Substandard | Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Substandard | Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	35,267	34,395
Substandard | Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	5,127	2,113
Substandard | Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	2,870	2,198
Substandard | Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	434
Substandard | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	64	77
Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Doubtful | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Doubtful | Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Doubtful | Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Doubtful | Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Doubtful | Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Doubtful | Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	0	0
Doubtful | Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	$ 0	$ 0

LOANS AND ALLOWANCE FOR LOAN 50

LOANS AND ALLOWANCE FOR LOAN LOSSES - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Allowance for loan losses:
Balance, beginning of period	$ 17,911	$ 13,098
Provision for loan losses	1,343	710
Charge-offs	(627)	(97)
Recoveries	60	46
Net charge-offs	(567)	(51)
Balance, end of period	18,687	13,757
Allowance for loan losses related to:
Individually evaluated for impairment			$ 2,324	$ 1,654
Collectively evaluated for impairment			16,363	16,257
Total allowance for loan losses	17,911	13,098	18,687	17,911
Recorded investment in loans:
Individually evaluated for impairment			32,908	20,957
Collectively evaluated for impairment			1,953,530	1,870,678
Total loans evaluated for impairment			1,986,438	1,891,635
Commercial and industrial
Allowance for loan losses:
Balance, beginning of period	5,059	3,644
Provision for loan losses	806	379
Charge-offs	(627)	(1)
Recoveries	46	35
Net charge-offs	(581)	34
Balance, end of period	5,284	4,057
Allowance for loan losses related to:
Individually evaluated for impairment			2,228	1,543
Collectively evaluated for impairment			3,056	3,516
Total allowance for loan losses	5,059	3,644	5,284	5,059
Recorded investment in loans:
Individually evaluated for impairment			15,497	8,408
Collectively evaluated for impairment			409,657	408,344
Total loans evaluated for impairment			425,154	416,752
Mortgage warehouse
Allowance for loan losses:
Balance, beginning of period	0	0
Provision for loan losses	0	0
Charge-offs	0	0
Recoveries	0	0
Net charge-offs	0	0
Balance, end of period	0	0
Allowance for loan losses related to:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			0	0
Total allowance for loan losses	0	0	0	0
Recorded investment in loans:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			64,132	67,038
Total loans evaluated for impairment			64,132	67,038
Commercial real estate (including multi-family residential) | Commercial real estate (including multi-family residential)
Allowance for loan losses:
Balance, beginning of period	8,950	5,914
Provision for loan losses	208	77
Charge-offs	0	(86)
Recoveries	0	0
Net charge-offs	0	(86)
Balance, end of period	9,158	5,905
Allowance for loan losses related to:
Individually evaluated for impairment			92	105
Collectively evaluated for impairment			9,066	8,845
Total allowance for loan losses	8,950	5,914	9,158	8,950
Recorded investment in loans:
Individually evaluated for impairment			16,755	12,321
Collectively evaluated for impairment			944,457	879,668
Total loans evaluated for impairment			961,212	891,989
Commercial real estate (including multi-family residential) | Commercial real estate construction and land development
Allowance for loan losses:
Balance, beginning of period	1,217	1,221
Provision for loan losses	391	131
Charge-offs	0	0
Recoveries	0	0
Net charge-offs	0	0
Balance, end of period	1,608	1,352
Allowance for loan losses related to:
Individually evaluated for impairment			4	0
Collectively evaluated for impairment			1,604	1,217
Total allowance for loan losses	1,217	1,221	1,608	1,217
Recorded investment in loans:
Individually evaluated for impairment			70	0
Collectively evaluated for impairment			175,194	159,247
Total loans evaluated for impairment			175,264	159,247
Commercial real estate (including multi-family residential) | 1-4 family residential (including home equity)
Allowance for loan losses:
Balance, beginning of period	1,876	1,432
Provision for loan losses	(40)	42
Charge-offs	0	0
Recoveries	10	10
Net charge-offs	10	10
Balance, end of period	1,846	1,484
Allowance for loan losses related to:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			1,846	1,876
Total allowance for loan losses	1,876	1,432	1,846	1,876
Recorded investment in loans:
Individually evaluated for impairment			574	217
Collectively evaluated for impairment			250,307	246,770
Total loans evaluated for impairment			250,881	246,987
Commercial real estate (including multi-family residential) | Residential construction
Allowance for loan losses:
Balance, beginning of period	748	820
Provision for loan losses	(11)	69
Charge-offs	0	0
Recoveries	0	0
Net charge-offs	0	0
Balance, end of period	737	889
Allowance for loan losses related to:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			737	748
Total allowance for loan losses	748	820	737	748
Recorded investment in loans:
Individually evaluated for impairment			0	0
Collectively evaluated for impairment			99,648	98,657
Total loans evaluated for impairment			99,648	98,657
Consumer and other
Allowance for loan losses:
Balance, beginning of period	61	67
Provision for loan losses	(11)	12
Charge-offs	0	(10)
Recoveries	4	1
Net charge-offs	4	(9)
Balance, end of period	54	70
Allowance for loan losses related to:
Individually evaluated for impairment			0	6
Collectively evaluated for impairment			54	55
Total allowance for loan losses	$ 61	$ 67	54	61
Recorded investment in loans:
Individually evaluated for impairment			12	11
Collectively evaluated for impairment			10,135	10,954
Total loans evaluated for impairment			$ 10,147	$ 10,965

LOANS AND ALLOWANCE FOR LOAN 51

LOANS AND ALLOWANCE FOR LOAN LOSSES - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)loan	Mar. 31, 2016USD ($)loan
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	3	9
Pre- Modification of Outstanding Recorded Investment	$ 1,730	$ 6,134
Post- Modification of Outstanding Recorded Investment	$ 1,730	$ 6,134
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	1	4
Pre- Modification of Outstanding Recorded Investment	$ 316	$ 873
Post- Modification of Outstanding Recorded Investment	$ 316	$ 873
Mortgage warehouse
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	0	0
Pre- Modification of Outstanding Recorded Investment	$ 0	$ 0
Post- Modification of Outstanding Recorded Investment	$ 0	$ 0
Real estate | Commercial real estate (including multi-family residential)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	1	4
Pre- Modification of Outstanding Recorded Investment	$ 1,328	$ 5,254
Post- Modification of Outstanding Recorded Investment	$ 1,328	$ 5,254
Real estate | Commercial real estate construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	0	0
Pre- Modification of Outstanding Recorded Investment	$ 0	$ 0
Post- Modification of Outstanding Recorded Investment	$ 0	$ 0
Real estate | 1-4 family residential (including home equity)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	1	0
Pre- Modification of Outstanding Recorded Investment	$ 86	$ 0
Post- Modification of Outstanding Recorded Investment	$ 86	$ 0
Real estate | Residential construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	0	0
Pre- Modification of Outstanding Recorded Investment	$ 0	$ 0
Post- Modification of Outstanding Recorded Investment	$ 0	$ 0
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of Contracts | loan	0	1
Pre- Modification of Outstanding Recorded Investment	$ 0	$ 7
Post- Modification of Outstanding Recorded Investment	$ 0	$ 7

FAIR VALUE - Narrative (Details

FAIR VALUE - Narrative (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired financing receivable, with related allowance, recorded investment	$ 7,771,000	$ 3,687,000
Impaired financing receivable, with related allowance, unpaid principal balance	7,992,000	3,907,000
Liabilities, fair value disclosure, recurring	0	0
Related allowance	2,324,000	1,654,000
Other real estate owned	365,000	1,503,000
Recorded investment of commercial real estate land loans	41,000	1,500,000
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired financing receivable, with related allowance, recorded investment	5,700,000	2,300,000
Impaired financing receivable, with related allowance, unpaid principal balance	8,000,000	3,900,000
Related allowance	2,300,000	$ 1,700,000
Other real estate owned	$ 365,000

FAIR VALUE - Carrying Amounts a

FAIR VALUE - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	$ 317,219	$ 316,455
FHLB stock	19,863	13,175
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	184,146	142,098
Available for sale securities	317,219	316,455
Loans held for investment, net of allowance	1,967,751	1,873,724
Accrued interest receivable	7,444	9,007
Deposits	2,012,569	1,870,183
Accrued interest payable	245	285
Short-term borrowings	75,000	85,000
Other borrowed funds	200,569	200,569
Subordinated debentures	9,222	9,196
Estimated Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	184,146	142,098
Available for sale securities	317,219	316,455
Loans held for investment, net of allowance	1,969,375	1,872,056
Accrued interest receivable	7,444	9,007
Deposits	2,011,425	1,868,429
Accrued interest payable	245	285
Short-term borrowings	75,000	85,000
Other borrowed funds	200,302	199,989
Subordinated debentures	9,222	9,196
Estimated Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	184,146	142,098
Available for sale securities	0	0
Loans held for investment, net of allowance	0	0
Accrued interest receivable	0	3
Deposits	0	0
Accrued interest payable	0	0
Short-term borrowings	0	0
Other borrowed funds	0	0
Subordinated debentures	0	0
Estimated Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Available for sale securities	317,219	316,455
Loans held for investment, net of allowance	0	0
Accrued interest receivable	2,050	3,616
Deposits	2,011,425	1,868,429
Accrued interest payable	245	285
Short-term borrowings	75,000	85,000
Other borrowed funds	200,302	199,989
Subordinated debentures	9,222	9,196
Estimated Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Available for sale securities	0	0
Loans held for investment, net of allowance	1,969,375	1,872,056
Accrued interest receivable	5,394	5,388
Deposits	0	0
Accrued interest payable	0	0
Short-term borrowings	0	0
Other borrowed funds	0	0
Subordinated debentures	$ 0	$ 0

FAIR VALUE - Fair Values for As

FAIR VALUE - Fair Values for Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	$ 317,219	$ 316,455
U.S. Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	6,163	6,149
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	236,551	237,802
Agency mortgage-backed pass-through securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	28,325	27,324
Corporate bonds and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	46,180	45,180
Recurring Basis
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	317,219	316,455
Recurring Basis | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	317,219	316,455
Recurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | U.S. Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	6,163	6,149
Recurring Basis | U.S. Government and agency securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | U.S. Government and agency securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	6,163	6,149
Recurring Basis | U.S. Government and agency securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	236,551	237,802
Recurring Basis | Municipal securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | Municipal securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	236,551	237,802
Recurring Basis | Municipal securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | Agency mortgage-backed pass-through securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	28,325	27,324
Recurring Basis | Agency mortgage-backed pass-through securities | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | Agency mortgage-backed pass-through securities | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	28,325	27,324
Recurring Basis | Agency mortgage-backed pass-through securities | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | Corporate bonds and other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	46,180	45,180
Recurring Basis | Corporate bonds and other | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	0	0
Recurring Basis | Corporate bonds and other | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	46,180	45,180
Recurring Basis | Corporate bonds and other | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale securities	$ 0	$ 0

FAIR VALUE - Assets and Liabili

FAIR VALUE - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets and liabilities are measured at fair value, nonrecurring basis	$ 0	$ 0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets and liabilities are measured at fair value, nonrecurring basis	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets and liabilities are measured at fair value, nonrecurring basis	6,033	3,756
Nonrecurring Basis | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Nonrecurring Basis | Level 1 | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	0	0
Nonrecurring Basis | Level 1 | Commercial real estate (including multi-family residential)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	0	0
Nonrecurring Basis | Level 1 | Commercial real estate construction and land development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	0
Nonrecurring Basis | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	0	0
Nonrecurring Basis | Level 2 | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	0	0
Nonrecurring Basis | Level 2 | Commercial real estate (including multi-family residential)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	0	0
Nonrecurring Basis | Level 2 | Commercial real estate construction and land development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	0
Nonrecurring Basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned	365	1,503
Nonrecurring Basis | Level 3 | Commercial and industrial
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	5,304	1,785
Nonrecurring Basis | Level 3 | Commercial real estate (including multi-family residential)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	298	$ 468
Nonrecurring Basis | Level 3 | Commercial real estate construction and land development
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans:	$ 66

DEPOSITS - Narrative (Details)

DEPOSITS - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Deposit Liabilities [Abstract]
Time deposits 250,000 or more	$ 199.5	$ 196.5
Brokered deposits	151	65.9
Reciprocal deposits	$ 70	$ 64.8

DEPOSITS - Time Deposits by Mat

DEPOSITS - Time Deposits by Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Deposit Liabilities [Abstract]
Within one year	$ 473,222
After one but within two years	183,913
After two but within three years	55,429
After three but within four years	15,896
After four but within five years	36,990
Total	$ 765,450	$ 678,394

BORROWINGS AND BORROWING CAPA58

BORROWINGS AND BORROWING CAPACITY - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Oct. 31, 2015	Mar. 31, 2017	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Increase (decrease) in other borrowings			$ 18,000,000	$ 10,100,000
Repayments of debt	$ 27,500,000
Borrowing Agreement | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.25%
Interest rate, effective percentage		3.75%
Federal Home Loan Bank of Dallas
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 708,700,000
Remaining borrowing capacity		398,300,000
Long-term line of credit		310,400,000
Outstanding amount		35,400,000
Federal Home Loan Bank of Dallas | Expire in August 2017
Debt Instrument [Line Items]
Outstanding amount		7,300,000
Federal Home Loan Bank of Dallas | Expire in October 2017
Debt Instrument [Line Items]
Outstanding amount		25,000,000
Federal Home Loan Bank of Dallas | Expire in February 2018
Debt Instrument [Line Items]
Outstanding amount		3,100,000
Federal Home Loan Bank of Dallas | Short-term Debt
Debt Instrument [Line Items]
Federal Home Loan Bank, advances		$ 75,000,000
Federal Home Loan Bank of Dallas | Short-term Debt | Weighted Average
Debt Instrument [Line Items]
Federal Home Loan Bank, advances, interest rate		0.93%
Federal Home Loan Bank of Dallas | Long-term Debt
Debt Instrument [Line Items]
Federal Home Loan Bank, advances		$ 200,000,000
Federal Home Loan Bank of Dallas | Long-term Debt | Expire in April 2018
Debt Instrument [Line Items]
Federal Home Loan Bank, advances		100,000,000
Federal Home Loan Bank of Dallas | Long-term Debt | Expire in May 2018
Debt Instrument [Line Items]
Federal Home Loan Bank, advances		$ 100,000,000
Federal Home Loan Bank of Dallas | Long-term Debt | Weighted Average
Debt Instrument [Line Items]
Federal Home Loan Bank, advances, interest rate		0.76%

BORROWINGS AND BORROWING CAPA59

BORROWINGS AND BORROWING CAPACITY - Scheduled Principal Maturities (Details) $ in Thousands	Mar. 31, 2017USD ($)
Debt Disclosure [Abstract]
Remaining 2,017	$ 0
2,018	0
2,019	0
2,020	0
2021 and thereafter	569
Total	$ 569

SUBORDINATED DEBENTURES - Narra

SUBORDINATED DEBENTURES - Narrative (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Subordinated Borrowing [Line Items]
Debentures, period over which company may defer interest payments	5 years
Junior subordinated debt owed to trusts	$ 11,300,000
Junior Subordinated Debt
Subordinated Borrowing [Line Items]
Junior subordinated debt owed to trusts	11,341,000
F&M Bancshares. Inc. | Junior Subordinated Debt
Subordinated Borrowing [Line Items]
Debt instrument, face amount	11,300,000
Debt instrument, fair value	9,200,000
Debt instrument, unamortized discount	$ 2,500,000

SUBORDINATED DEBENTURES - Summa

SUBORDINATED DEBENTURES - Summary of Pertinent Information Related to Junior Subordinated Debentures (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Subordinated Borrowing [Line Items]
Junior Subordinated Debt Owed to Trusts	$ 11,300,000
Junior Subordinated Debt
Subordinated Borrowing [Line Items]
Junior Subordinated Debt Owed to Trusts	$ 11,341,000
Junior Subordinated Debt | Farmers & Merchants Capital Trust II
Subordinated Borrowing [Line Items]
Issuance Date	Nov. 13, 2003
Trust Preferred Securities Outstanding	$ 7,500,000
Junior Subordinated Debt Owed to Trusts	$ 7,732,000
Maturity Date	Nov. 8, 2033
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | 3 month LIBOR
Subordinated Borrowing [Line Items]
Interest Rate	3.00%
Interest rate, period end	1.1347%
Junior Subordinated Debt | Farmers & Merchants Capital Trust III
Subordinated Borrowing [Line Items]
Issuance Date	Jun. 30, 2005
Trust Preferred Securities Outstanding	$ 3,500,000
Junior Subordinated Debt Owed to Trusts	$ 3,609,000
Maturity Date	Jul. 7, 2035
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | 3 month LIBOR
Subordinated Borrowing [Line Items]
Interest Rate	1.80%

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income tax expense	$ 1,530,000	$ 3,070,000
Effective income tax Rate reconciliation, percent	20.20%	32.60%
Unrecognized tax benefits, income tax penalties and interest expense	$ 0	$ 0
Impact on the tax rate due to the excess tax benefit on stock options exercised	7.00%
Increase in tax free income from purchase of municipal securities	8.00%

STOCK BASED COMPENSATION - Narr

STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	1,460,000
Share-based compensation expense	$ 341	$ 354
Option, cumulative options granted since inception (in shares)	1,257,631
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period	10 years
Award vesting period	4 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Equity instruments other than options, grants in period (in shares)	11,250

STOCK BASED COMPENSATION - Stoc

STOCK BASED COMPENSATION - Stock Option Plan Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Number of Options
Options outstanding, beginning balance (in shares)	935
Options granted (in shares)	17
Options exercised (in shares)	(119)
Options forfeited (in shares)	0
Options outstanding, ending balance (in shares)	833	935
Nuber of Options, Options vested and exercisable (in shares)	491
Weighted Average Exercise Price
Options outstanding, beginning balance (in dollars per share)	$ 18.21
Options granted (in dollars per share)	32.45
Options exercised (in dollars per share)	17.59
Options forfeited (in dollars per share)	0
Options outstanding, ending balance (in dollars per share)	18.65	$ 18.21
Weighted Average Exercise Price, Options vested and exercisable (in dollars per share)	$ 15.93
Weighted Average Remaining Contractual Term, Options outstanding	6 years 1 month 24 days	6 years 2 months 23 days
Weighted Average Remaining Contractual Term, Options vested and exercisable	4 years 8 months 16 days
Aggregate Intrinsic Value, Options outstanding	$ 15,457	$ 16,773
Aggregate Intrinsic Value, Options vested and exercisable	$ 10,444

STOCK BASED COMPENSATION - Summ

STOCK BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Number of Shares
Nonvested share awards outstanding, beginning balance (in shares) | shares	24,000
Share awards granted (in shares) | shares	11,250
Share awards vested (in shares) | shares	(10,000)
Unvested share awards forfeited (in shares) | shares	0
Nonvested share awards outstanding, ending balance (in shares) | shares	25,000
Weighted Average Grant Date Fair Value
Nonvested share awards outstanding, beginning balance (in dollars per share) | $ / shares	$ 18.31
Share awards granted (in dollars per share) | $ / shares	32.45
Share awards vested (in dollars per share) | $ / shares	13.32
Unvested share awards forfeited (in dollars per share) | $ / shares	0
Nonvested share awards outstanding, ending balance (in dollars per share) | $ / shares	$ 24.59

OFF-BALANCE SHEET ARRANGEMENT66

OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details)	3 Months Ended
	Mar. 31, 2017
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Commitments to make loans, period	120 days
Minimum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet fixed rate loan commitments, interest rate	1.60%
Maximum
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet fixed rate loan commitments, interest rate	7.50%
Weighted Average
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Off-balance-sheet fixed rate loan commitments, interest rate	5.00%
Off-balance-sheet fixed rate loan commitments, weighted average maturity	2 years 5 months 5 days

OFF-BALANCE SHEET ARRANGEMENT67

OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments With Off-balance Sheet Risk (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	$ 373,219	$ 363,245
Variable Rate	263,045	232,675
Commitments to extend credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	363,604	353,822
Variable Rate	261,970	232,551
Standby letters of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	9,615	9,423
Variable Rate	$ 1,075	$ 124

REGULATORY CAPITAL MATTERS - Na

REGULATORY CAPITAL MATTERS - Narrative (Details)	Dec. 31, 2018	Mar. 31, 2017	Dec. 31, 2015
Banking and Thrift [Abstract]
Capital conservation buffer, phase in amount			0.625%
Capital conservation buffer, increase per year		0.625%
Forecast
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Capital conservation buffer	2.50%

REGULATORY CAPITAL MATTERS - Ac

REGULATORY CAPITAL MATTERS - Actual and Required Capital (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Total Capital
Capital	$ 276,836	$ 268,155
Capital to Risk Weighted Assets	12.35%	12.57%
Capital Required for Capital Adequacy	$ 179,356	$ 170,690
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Plus Capital Conservation Buffer	$ 207,380	$ 184,025
Plus Capital Conservation Buffer to Risk Weighted Assets	9.25%	8.625%
Common Equity Tier 1 Capital
Common Equity Tier One Risk Based Capital	$ 248,926	$ 241,048
Common Equity Tier One Risk Based Capital to Risk Weighted Assets	11.10%	11.30%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy	$ 100,888	$ 96,013
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Plus Common Equity Tier One Risk Based Capital	$ 128,912	$ 109,348
Plus Common Equity Tier One Risk Based Capital to Risk Weighted Assets	5.75%	5.125%
Tier I Capital
Tier One Risk Based Capital	$ 258,148	$ 250,244
Tier One Risk Based Capital to Risk Weighted Assets	11.51%	11.73%
Tier One Risk Based Capital Required for Capital Adequacy	$ 134,517	$ 128,018
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Plus Tier One Risk Based Capital	$ 162,541	$ 141,353
Plus Tier One Risk Based Capital to Risk Weighted Assets	7.25%	6.625%
Tier I Capital
Tier One Leverage Capital	$ 258,148	$ 250,244
Tier One Leverage Capital to Average Assets	10.28%	10.35%
Tier One Leverage Capital Required for Capital Adequacy	$ 100,471	$ 96,708
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Plus Tier One Leverage Capital	$ 100,471	$ 96,708
Plus Tier One Leverage Capital to Average Assets	4.00%	4.00%
Allegiance Bank
Total Capital
Capital	$ 253,957	$ 247,606
Capital to Risk Weighted Assets	11.33%	11.61%
Capital Required for Capital Adequacy	$ 179,280	$ 170,630
Capital Required for Capital Adequacy to Risk Weighted Assets	8.00%	8.00%
Plus Capital Conservation Buffer	$ 207,293	$ 183,960
Plus Capital Conservation Buffer to Risk Weighted Assets	9.25%	8.625%
Capital Required to be Well Capitalized	$ 224,100	$ 213,288
Capital Required to be Well Capitalized to Risk Weighted Assets	10.00%	10.00%
Common Equity Tier 1 Capital
Common Equity Tier One Risk Based Capital	$ 235,269	$ 229,694
Common Equity Tier One Risk Based Capital to Risk Weighted Assets	10.50%	10.77%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy	$ 100,845	$ 95,979
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	4.50%	4.50%
Plus Common Equity Tier One Risk Based Capital	$ 128,858	$ 109,310
Plus Common Equity Tier One Risk Based Capital to Risk Weighted Assets	5.75%	5.125%
Common Equity Tier One Risk Based Capital Required to be Well Capitalized	$ 145,665	$ 138,637
Common Equity Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	6.50%	6.50%
Tier I Capital
Tier One Risk Based Capital	$ 235,269	$ 229,694
Tier One Risk Based Capital to Risk Weighted Assets	10.50%	10.77%
Tier One Risk Based Capital Required for Capital Adequacy	$ 134,460	$ 127,973
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	6.00%	6.00%
Plus Tier One Risk Based Capital	$ 162,473	$ 141,303
Plus Tier One Risk Based Capital to Risk Weighted Assets	7.25%	6.625%
Tier One Risk Based Capital Required to be Well Capitalized	$ 179,280	$ 170,630
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets	8.00%	8.00%
Tier I Capital
Tier One Leverage Capital	$ 235,269	$ 229,694
Tier One Leverage Capital to Average Assets	9.37%	9.50%
Tier One Leverage Capital Required for Capital Adequacy	$ 100,437	$ 96,679
Tier One Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Plus Tier One Leverage Capital	$ 100,437	$ 96,679
Plus Tier One Leverage Capital to Average Assets	4.00%	4.00%
Tier One Leverage Capital Required to be Well Capitalized	$ 125,547	$ 120,849
Tier One Leverage Capital Required to be Well Capitalized to Average Assets	5.00%	5.00%

EARNINGS PER COMMON SHARE - Nar

EARNINGS PER COMMON SHARE - Narrative) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)	0
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share, amount (in shares)		596

EARNINGS PER COMMON SHARE - Sum

EARNINGS PER COMMON SHARE - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income attributable to common shareholders	$ 6,047	$ 6,355
Basic:
Weighted average common shares outstanding (in shares)	13,021	12,840
Weighted average common shares outstanding (in dollars per share)	$ 0.46	$ 0.49
Diluted:
Dilutive effect of stock option exercises (in shares)	356	127
Total (in shares)	13,377	12,967
Total (in dollars per share)	$ 0.45	$ 0.49