The agreement, mostly reflecting initiatives already implemented by the board of directors and management, is based on items identified in a periodic regulatory exam completed as of June 30, 2009.

According to Allegiance Bank, the agreement contains a number of other stipulations including the reduction of the concentration of commercial real estate as a proportion of the loan portfolio, adopting new and stronger loan policies and monitoring procedures, improving liquidity and asset/liability management, and enhancing the budgeting and strategic planning processes.

The agreement is not intended to interfere with the bank's current, basic day-to-day operations, the company said. Consequently, the agreement will not affect bank customers. Accounts at Allegiance Bank continue to be insured up to $250,000 per depositor by the Federal Deposit Insurance Corporation (FDIC).

Gregg Wagner, president and CEO of Allegiance Bank, said: "The board of directors and management have worked in close co-operation with regulators from the FDIC to reach an agreement that complements our existing plan to both strengthen our capital base and improve financial performance.

"Through a number of strategic actions completed this year, we are encouraged by the progress we have already achieved on our plan."

A service of YellowBrix, Inc.