Exhibit 99.1
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
Equity Bancshares, Inc. Announces Fourth Quarter Earnings of $0.64
per Diluted Common Share and Net Income of $10.0 Million
Company reports net interest margin expansion in fourth quarter and
successful year for non-interest expense and non-interest income initiatives
WICHITA, Kansas, January 23, 2020 (GLOBE NEWSWIRE) – Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “we”, “us”, “our”), the Wichita-based holding company of Equity Bank, reported its unaudited results for the fourth quarter and year ended December 31, 2019, including net income allocable to common stockholders for the year of $25.6 million, or $1.61 per diluted share, and $10.0 million, or $0.64 per diluted share, in the fourth quarter.
“Our fourth quarter 2019 results indicate the collaborative effort of our retail and deposit teams to price our offerings and meet the needs of our diverse customer base in our regions,” said Brad Elliott, Chairman and CEO of Equity. “We have remained highly competitive for our customers in all areas while continuing to deliver shareholder value.”
“During many initiatives that have improved our customer experience, responsiveness and satisfaction, we operated with the entrepreneurial spirit that is one of our core values and differentiators,” said Mr. Elliott. “As a result, our net interest margin and our non-performing asset ratios have shown improvement. Our focus in 2020 includes continuing to offer the relationship-based customer service that our business clients and consumers value and providing innovative products that help us grow signature deposits, including checking, operating and savings accounts. We continue to monitor and develop relationships for further business combinations and, as always, we prioritize cultural fit in addition to stockholder value.”
On February 8, 2019, Equity completed its acquisition of two bank locations in Guymon, Oklahoma, and one bank location in Cordell, Oklahoma, from MidFirst Bank (“MidFirst”) of Oklahoma City, Oklahoma (“the MidFirst acquisition”).
Notable Items:
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• |
Net income before taxes for the fourth quarter of 2019 was $13.1 million, or $0.84 per diluted share, compared to net income before taxes of $12.9 million, or $0.80 per diluted share, for the same time period in 2018. Net income before taxes, adjusted to exclude merger expense was $13.8 million, or $0.86 per diluted share, for the fourth quarter of 2018. There were no merger expenses in the fourth quarter of 2019. |
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• |
Stated diluted income per share in the fourth quarter of 2019 was $0.64. Stated diluted income per share for the year ended December 31, 2019 was $1.61. Merger expenses, adjusted for estimated income tax, were $694 thousand for the year ended December 31, 2019, or $0.04 per diluted share. |
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On April 18, 2019, the Board of Directors of Equity Bancshares, Inc. authorized the repurchase of up to 1,100,000 shares of our Class A Voting Common Stock, par value $0.01 per share, from time to time, beginning April 29, 2019 and concluding October 30, 2020. The repurchase program does not obligate us to acquire a specific dollar amount or number of shares and it may be extended, modified or discontinued at any time without notice. As of December 31, 2019, a total of 421,016 shares have been repurchased under this authorization at an average price of $25.81. |
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
Equity’s Balance Sheet Highlights:
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Total loans held for investment of $2.56 billion at December 31, 2019, as compared to total loans held for investment of $2.58 billion at December 31, 2018. The decrease of $18.8 million includes a decrease of $25.3 million, or 1.0%, partially offset by $6.5 million of loans added in the MidFirst acquisition. |
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Total deposits were $3.06 billion at December 31, 2019, as compared to $3.12 billion at December 31, 2018. Signature deposits, including core deposits comprised of checking, savings and money market accounts, were $2.23 billion at December 31, 2019, as compared to $2.12 billion at December 31, 2018. Signature deposits increased $114.8 million, or 5.4%, including $48.5 million assumed in the MidFirst acquisition. |
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Total assets were $3.95 billion at December 31, 2019, as compared to $4.06 billion at December 31, 2018. The MidFirst acquisition added total assets of $98.6 million. |
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Book value per common share was $30.95 at December 31, 2019, as compared to $28.87 at December 31, 2018. Tangible book value per common share was $20.75 at December 31, 2019, as compared to $19.08 at December 31, 2018. |
Financial Results for the Year Ended December 31, 2019
Net income allocable to common stockholders was $25.6 million for the year ended December 31, 2019, as compared to $35.8 million for the year ended December 31, 2018, a decrease of $10.2 million, principally related to the non-typical specific impairment of $14.5 million ($11.3 million adjusted for taxes) taken during the first quarter of 2019. Results of operations of the MidFirst acquisition are included in Equity’s 2019 results of operations subsequent to the acquisition on February 8, 2019. Equity’s financial results also reflect results of operations of our 2018 mergers subsequent to the merger dates. Equity Bank merged with City Bank and Trust (“CBT”) in Guymon, Oklahoma, on August 23, 2018, and on May 4, 2018, Equity completed mergers with Kansas Bank Corporation (“KBC”), parent company of First National Bank of Liberal/Hugoton (“FNB”) in Liberal, Kansas and Adams Dairy Bancshares, Inc. (“Adams”), parent company of Adams Dairy Bank in Blue Springs, Missouri.
Diluted earnings per share were $1.61 for the year ended December 31, 2019, as compared to $2.28 for the comparable period of 2018. Weighted average fully diluted shares were 15,843,211 and 15,708,386 for the year ended December 31, 2019 and 2018.
Net interest income was $125.9 million for the year ended December 31, 2019, as compared to $124.8 million for the year ended December 31, 2018, an increase of $1.1 million, or 0.8%. The additional net interest income was primarily the result of interest-earning assets growing at a faster rate than interest-bearing liabilities due to increases in non-interest-bearing deposits and capital.
Our net interest margin was 3.48% for the year ended December 31, 2019, as compared to 3.81% for the year ended December 31, 2018. The decrease in net interest margin was primarily due to an increase in cost of funds, a reduction in loan fees, additional callable bond premium amortization related to the adoption of ASU 2017-08 and the movement of the aforementioned large credit relationship with the non-typical specific impairment to nonaccrual during the first quarter of 2019.
The provision for loan losses was $18.4 million for the year ended December 31, 2019, as compared to $4.0 million for the year ended December 31, 2018. In the first quarter of 2019, we recorded a $14.5 million provision for loss against a credit relationship and subsequently charged off a net of $15.2 million on this credit relationship during the year ended December 31, 2019. Net charge-offs for the year ended December 31, 2019, were $2.4 million, exclusive of the net charge offs related to the previously mentioned credit relationship, as compared to net charge-offs of $1.0 million for the comparable period in 2018. The increase in adjusted charge-offs year over year was primarily the result of purchased loans moving out of the portfolio.
Total non-interest income was $25.0 million for the year ended December 31, 2019, as compared to $19.7 million for the year ended December 31, 2018. The increase is largely attributable to increases in debit card income, service charges and fees and mortgage banking income.
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
Total non-interest expense was $99.6 million for the year ended December 31, 2019, as compared to $94.4 million for the year ended December 31, 2018. These results include the effect of the May 2018 addition of five locations in southwest Kansas plus one location in Blue Springs, Missouri; the August 2018 addition of one location in Guymon, Oklahoma; and the February 2019 acquisition of two additional locations in Guymon, Oklahoma, and one location in Cordell, Oklahoma. In addition, the results reflect added lending, customer service, corporate and operations staff indirectly attributable to mergers and organic growth. Data processing costs increased due to more accounts, higher transaction volumes and our new online banking platform. Also, included in non-interest expense for 2019 are expenditures related to the infrastructure around our Trust and Wealth Management business line and increased professional fees associated with the previously disclosed specific credit relationship. Merger expenses of $915 thousand ($694 thousand after tax) for the year ended December 31, 2019, as compared to $7.5 million ($5.7 million after tax) for the year ended December 31, 2018, were also included in non-interest expense.
Equity’s effective tax rate for the year ended December 31, 2019 was 22.2% as compared to 22.4% for the year ended December 31, 2018. For both of the comparable periods, the estimated annual effective tax rate at which income tax expense was provided reflect, in addition to statutory tax rates, the levels of tax-exempt interest income, non-taxable life insurance income, non-deductible facilitative merger expense and other non-deductible expense in proportion to annual income before income taxes, as well as federal income tax credits available in each annual period.
Financial Results for the Quarter Ended December 31, 2019
Net income allocable to common stockholders was $10.0 million for the three months ended December 31, 2019, as compared to net income allocable to common stockholders of $9.9 million for the three months ended December 31, 2018, an increase of $89 thousand.
Diluted earnings per share were $0.64 for the three months ended December 31, 2019, as compared to diluted earnings per share of $0.62 for the comparable period in 2018. Weighted average fully diluted shares were 15,684,962 and 16,095,103 for the three months ended December 31, 2019 and 2018.
Net interest income was $32.4 million for the three months ended December 31, 2019, as compared to $33.3 million for the three months ended December 31, 2018, a $931 thousand, or 2.8%, decrease. The decrease in net interest income was primarily driven by average rates of interest-earning assets falling at a faster rate than average rates of interest-bearing liabilities.
The net interest margin was 3.61% for the three months ended December 31, 2019, as compared to 3.70% for the three months ended December 31, 2018. The decrease in net interest margin was primarily due to a reduction in loan fees, a falling interest rate environment where the average rate of interest-earning assets fell faster than the average rate of interest-bearing liabilities as well as movement of the aforementioned large credit relationship to nonaccrual during the first quarter of 2019.
The provision for loan losses was $1.1 million for the three months ended December 31, 2019, as compared to $750 thousand for the three months ended December 31, 2018. For the three months ended December 31, 2019, we had net charge-offs of $6.7 million, of which $5.0 million was related to the credit relationship for which we provisioned $14.5 million during the first quarter of 2019, as compared to net charge-offs of $307 thousand for the same period in 2018. The increase in adjusted net charge-offs year-over-year was primarily the result of purchased loans moving out of the portfolio.
Total non-interest income for the quarter ended December 31, 2019 was $6.6 million, as compared to $5.4 million for the quarter ended December 31, 2018. This increase was largely due to increases in debit card income, service charges and fees and an increase in mortgage banking. The increases in debit card income and service charges and fees are principally attributable to the addition of accounts and higher transaction volumes.
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
Total non-interest expense was $24.8 million for the quarter ended December 31, 2019, as compared to $25.1 million for the quarter ended December 31, 2018. The decrease in non-interest expense is due largely to decreases in salaries and employee benefits, merger expense and FDIC insurance expense, partially offset by increases in other expense, data processing, other real estate owned expense, professional fees and net occupancy and equipment expense. Non-interest expense does not include any merger expenses for the three months ended December 31, 2019. Merger expenses for the three months ended December 31, 2018, totaled $938 thousand ($712 thousand after tax).
Equity’s effective tax rate for the quarter ended December 31, 2019 was 23.8%, as compared to 23.0% for the quarter ended December 31, 2018.
Loans, Deposits and Total Assets
Loans held for investment were $2.56 billion at December 31, 2019, as compared to $2.58 billion at December 31, 2018, a decrease of $18.8 million.
As of December 31, 2019, Equity’s allowance for loan losses to total loans was 0.48%, as compared to 0.44% at December 31, 2018. Total reserves, including purchase discounts, to total loans were approximately 0.85% as of December 31, 2019, as compared to 1.02% at December 31, 2018. Nonperforming assets were $46.9 million as of December 31, 2019, or 1.19% of total assets. Nonperforming assets were $39.6 million at December 31, 2018, or 0.98% of total assets.
Total deposits were $3.06 billion at December 31, 2019, as compared to $3.12 billion at December 31, 2018, a decrease of $59.9 million. This decrease included $174.7 million of time deposits and $22.5 million of demand deposits, partially offset by an increase of $137.3 million in savings, NOW and money market deposits and $98.5 million assumed in the MidFirst acquisition. Signature deposits were $2.23 billion at December 31, 2019, as compared to $2.12 billion at December 31, 2018. The decrease in time deposits was primarily due to roll-off of wholesale deposits.
At December 31, 2019, Equity had consolidated total assets of $3.95 billion, as compared to $4.06 billion at December 31, 2018, a decrease of $112.1 million.
Borrowings and Capital
At December 31, 2019, borrowings totaled $383.6 million, as compared to $464.7 million at December 31, 2018. The decrease in borrowings was principally due to a $60.5 million decrease in Federal Home Loan Bank advances, a $14.4 million decline in retail repurchase agreements and a $6.5 million reduction in bank stock loan.
At December 31, 2019, common stockholders’ equity totaled $478.1 million, $30.95 per common share, as compared to $455.9 million, $28.87 per common share, at December 31, 2018. Tangible common equity was $320.5 million and tangible book value per common share was $20.75 at December 31, 2019. Tangible common equity was $301.3 million and tangible book value per common share was $19.08 at December 31, 2018. During the second and third quarters of 2019, the company repurchased a total of 421,016 shares of our Class A Voting Common Stock at a total cost of $10.9 million, or $25.81 per share. There were no shares of our Class A Voting Common Stock repurchased during the fourth quarter of 2019. The ratio of common equity tier 1 capital to risk-weighted assets was 11.63% and the total capital to risk-weighted assets was 12.59% at December 31, 2019.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.
Conference Call and Webcast
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
Equity Chairman and Chief Executive Officer, Brad Elliott, and Chief Financial Officer, Greg Kossover, will hold a conference call and webcast to discuss fourth quarter and annual 2019 results on Friday, January 24, 2020 at 10 a.m. eastern time, 9:00 a.m. central time.
Investors, news media and other participants should register for the call or audio webcast at investor.equitybank.com. On Friday, January 24, 2020, participants may also dial into the call toll-free at (844) 534-7311 from anywhere in the U.S. or (574) 990-1419 internationally, using conference ID no. 1766348.
Participants are encouraged to dial into the call or access the webcast approximately 10 minutes prior to the start time. Presentation slides to pair with the call or webcast will be posted one hour prior to the call at investor.equitybank.com.
A replay of the call and webcast will be available two hours following the close of the call until January 31, 2020, accessible at (855) 859-2056 with conference ID no. 1766348 at investor.equitybank.com.
About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NASDAQ Global Select Market under the symbol “EQBK.” Learn more at www.equitybank.com.
No Offer or Solicitation
This press release shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirement of Section 10 of the Securities Act of 1933, as amended.
Special Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive.
For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 20, 2019 and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.
Investor Contact:
Chris Navratil
SVP, Finance
Equity Bancshares, Inc.
(316) 612-6014
[email protected]
Media Contact:
John J. Hanley
SVP, Senior Director of Marketing
Equity Bancshares, Inc.
(816) 505-4063
[email protected]
Unaudited Financial Tables
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Table 1. Selected Financial Highlights |
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Table 2. Year-to-Date Analysis of Changes in Net Interest Income |
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Table 3. Quarterly Analysis of Changes in Net Interest Income |
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Table 4. Consolidated Balance Sheets |
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Table 5. Consolidated Statements of Income |
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Table 6. Non-GAAP Financial Measures |
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
TABLE 1. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except per share data)
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As of and for the three months ended |
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December 31, |
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September 30, |
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June 30, |
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March 31, |
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December 31, |
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2019 |
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2019 |
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2019 |
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2019 |
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2018 |
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Statement of Income Data |
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|
|
|
|
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Net interest income |
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$ |
32,405 |
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$ |
31,526 |
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$ |
31,288 |
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$ |
30,639 |
|
|
$ |
33,336 |
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|
Provision for loan losses |
|
|
1,055 |
|
|
|
679 |
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|
|
974 |
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|
|
15,646 |
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|
|
750 |
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Net gains (losses) from securities transactions |
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|
(3 |
) |
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4 |
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|
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7 |
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6 |
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|
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5 |
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Other non-interest income |
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6,644 |
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6,568 |
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6,444 |
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|
5,318 |
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|
|
5,444 |
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Total non-interest income |
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6,641 |
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6,572 |
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|
|
6,451 |
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|
|
5,324 |
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|
|
5,449 |
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Merger expense |
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|
— |
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— |
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|
|
276 |
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|
|
639 |
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|
|
938 |
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Other non-interest expense |
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24,846 |
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|
|
24,223 |
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|
|
24,747 |
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|
|
24,904 |
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|
|
24,200 |
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Total non-interest expense |
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24,846 |
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|
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24,223 |
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|
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25,023 |
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|
|
25,543 |
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|
|
25,138 |
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Income (loss) before income taxes |
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|
13,145 |
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|
|
13,196 |
|
|
|
11,742 |
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|
|
(5,226 |
) |
|
|
12,897 |
|
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Provision for income taxes (benefits) |
|
|
3,131 |
|
|
|
2,790 |
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|
|
2,510 |
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|
|
(1,153 |
) |
|
|
2,972 |
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Net income (loss) |
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10,014 |
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|
|
10,406 |
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|
|
9,232 |
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|
|
(4,073 |
) |
|
|
9,925 |
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Net income (loss) allocable to common stockholders |
|
|
10,014 |
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|
|
10,406 |
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|
|
9,232 |
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|
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(4,073 |
) |
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|
9,925 |
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Basic earnings (loss) per share |
|
|
0.65 |
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|
|
0.67 |
|
|
|
0.59 |
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|
|
(0.26 |
) |
|
|
0.63 |
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Diluted earnings (loss) per share |
|
|
0.64 |
|
|
|
0.66 |
|
|
|
0.58 |
|
|
|
(0.26 |
) |
|
|
0.62 |
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|
|
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|
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|
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|
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|
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|
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Balance Sheet Data (at period end) |
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Available-for-sale securities |
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$ |
142,067 |
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$ |
152,680 |
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$ |
161,082 |
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$ |
166,355 |
|
|
$ |
168,875 |
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Held-to-maturity securities |
|
|
769,059 |
|
|
|
764,163 |
|
|
|
766,950 |
|
|
|
749,493 |
|
|
|
748,356 |
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Gross loans held for investment |
|
|
2,556,652 |
|
|
|
2,600,924 |
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|
|
2,679,985 |
|
|
|
2,618,986 |
|
|
|
2,575,408 |
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Allowance for loan losses |
|
|
12,232 |
|
|
|
17,875 |
|
|
|
17,777 |
|
|
|
26,340 |
|
|
|
11,454 |
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|
Intangible assets, net |
|
|
157,518 |
|
|
|
158,350 |
|
|
|
159,147 |
|
|
|
159,944 |
|
|
|
154,665 |
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|
Total assets |
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|
3,949,578 |
|
|
|
4,074,663 |
|
|
|
4,180,074 |
|
|
|
4,065,354 |
|
|
|
4,061,716 |
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Total deposits |
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|
3,063,516 |
|
|
|
3,106,929 |
|
|
|
3,185,893 |
|
|
|
3,260,870 |
|
|
|
3,123,447 |
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|
Non-time deposits |
|
|
2,230,346 |
|
|
|
2,177,820 |
|
|
|
2,192,534 |
|
|
|
2,220,110 |
|
|
|
2,115,541 |
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Borrowings |
|
|
383,632 |
|
|
|
480,000 |
|
|
|
515,582 |
|
|
|
331,221 |
|
|
|
464,676 |
|
|
Total liabilities |
|
|
3,471,518 |
|
|
|
3,607,613 |
|
|
|
3,721,668 |
|
|
|
3,611,891 |
|
|
|
3,605,775 |
|
|
Total stockholders’ equity |
|
|
478,060 |
|
|
|
467,050 |
|
|
|
458,406 |
|
|
|
453,463 |
|
|
|
455,941 |
|
|
Tangible common equity* |
|
|
320,542 |
|
|
|
308,700 |
|
|
|
299,259 |
|
|
|
293,519 |
|
|
|
301,276 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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Selected Average Balance Sheet Data (quarterly average) |
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|
|
Investment securities |
|
$ |
911,923 |
|
|
$ |
926,839 |
|
|
$ |
924,914 |
|
|
$ |
918,804 |
|
|
$ |
893,642 |
|
|
Total gross loans receivable |
|
|
2,568,301 |
|
|
|
2,646,454 |
|
|
|
2,655,256 |
|
|
|
2,560,030 |
|
|
|
2,590,610 |
|
|
Interest-earnings assets |
|
|
3,563,642 |
|
|
|
3,657,970 |
|
|
|
3,665,618 |
|
|
|
3,560,815 |
|
|
|
3,578,487 |
|
|
Total assets |
|
|
3,932,909 |
|
|
|
4,030,606 |
|
|
|
4,025,764 |
|
|
|
3,926,359 |
|
|
|
3,935,722 |
|
|
Interest-bearing deposits |
|
|
2,563,519 |
|
|
|
2,673,007 |
|
|
|
2,726,443 |
|
|
|
2,709,596 |
|
|
|
2,501,227 |
|
|
Borrowings |
|
|
377,561 |
|
|
|
390,562 |
|
|
|
347,103 |
|
|
|
269,492 |
|
|
|
480,417 |
|
|
Total interest-bearing liabilities |
|
|
2,941,080 |
|
|
|
3,063,569 |
|
|
|
3,073,546 |
|
|
|
2,979,088 |
|
|
|
2,981,644 |
|
|
Total deposits |
|
|
3,055,275 |
|
|
|
3,152,785 |
|
|
|
3,200,624 |
|
|
|
3,178,164 |
|
|
|
2,991,657 |
|
|
Total liabilities |
|
|
3,459,347 |
|
|
|
3,567,354 |
|
|
|
3,568,661 |
|
|
|
3,466,646 |
|
|
|
3,486,272 |
|
|
Total stockholders' equity |
|
|
473,562 |
|
|
|
463,252 |
|
|
|
457,103 |
|
|
|
459,713 |
|
|
|
449,450 |
|
|
Tangible common equity* |
|
|
315,569 |
|
|
|
304,492 |
|
|
|
297,541 |
|
|
|
302,398 |
|
|
|
294,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) annualized |
|
|
1.01 |
% |
|
|
1.02 |
% |
|
|
0.92 |
% |
|
|
(0.42 |
)% |
|
|
1.00 |
% |
|
Return on average equity (ROAE) annualized |
|
|
8.39 |
% |
|
|
8.91 |
% |
|
|
8.10 |
% |
|
|
(3.59 |
)% |
|
|
8.76 |
% |
|
Return on average tangible common equity (ROATCE) annualized* |
|
|
13.42 |
% |
|
|
14.38 |
% |
|
|
13.29 |
% |
|
|
(4.62 |
)% |
|
|
14.17 |
% |
|
Yield on loans annualized |
|
|
5.67 |
% |
|
|
5.70 |
% |
|
|
5.74 |
% |
|
|
5.79 |
% |
|
|
5.91 |
% |
|
Cost of interest-bearing deposits annualized |
|
|
1.32 |
% |
|
|
1.56 |
% |
|
|
1.64 |
% |
|
|
1.61 |
% |
|
|
1.45 |
% |
|
Cost of total deposits annualized |
|
|
1.11 |
% |
|
|
1.32 |
% |
|
|
1.40 |
% |
|
|
1.37 |
% |
|
|
1.21 |
% |
|
Net interest margin annualized |
|
|
3.61 |
% |
|
|
3.42 |
% |
|
|
3.42 |
% |
|
|
3.49 |
% |
|
|
3.70 |
% |
|
Efficiency ratio* |
|
|
63.63 |
% |
|
|
63.59 |
% |
|
|
65.59 |
% |
|
|
69.26 |
% |
|
|
62.40 |
% |
|
Non-interest income / average assets |
|
|
0.67 |
% |
|
|
0.65 |
% |
|
|
0.64 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
Non-interest expense / average assets |
|
|
2.51 |
% |
|
|
2.38 |
% |
|
|
2.49 |
% |
|
|
2.64 |
% |
|
|
2.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
|
9.02 |
% |
|
|
8.48 |
% |
|
|
8.26 |
% |
|
|
8.37 |
% |
|
|
8.60 |
% |
|
Common Equity Tier 1 Capital Ratio |
|
|
11.63 |
% |
|
|
11.05 |
% |
|
|
10.46 |
% |
|
|
10.46 |
% |
|
|
10.95 |
% |
|
Tier 1 Risk Based Capital Ratio |
|
|
12.15 |
% |
|
|
11.56 |
% |
|
|
10.95 |
% |
|
|
10.96 |
% |
|
|
11.45 |
% |
|
Total Risk Based Capital Ratio |
|
|
12.59 |
% |
|
|
12.19 |
% |
|
|
11.56 |
% |
|
|
11.87 |
% |
|
|
11.86 |
% |
|
Total stockholders' equity to total assets |
|
|
12.10 |
% |
|
|
11.46 |
% |
|
|
10.97 |
% |
|
|
11.15 |
% |
|
|
11.23 |
% |
|
Tangible common equity to tangible assets* |
|
|
8.45 |
% |
|
|
7.88 |
% |
|
|
7.44 |
% |
|
|
7.52 |
% |
|
|
7.71 |
% |
|
Book value per common share |
|
$ |
30.95 |
|
|
$ |
30.25 |
|
|
$ |
29.45 |
|
|
$ |
28.66 |
|
|
$ |
28.87 |
|
|
Tangible book value per common share* |
|
$ |
20.75 |
|
|
$ |
19.99 |
|
|
$ |
19.23 |
|
|
$ |
18.55 |
|
|
$ |
19.08 |
|
|
Tangible book value per diluted common share* |
|
$ |
20.39 |
|
|
$ |
19.73 |
|
|
$ |
18.99 |
|
|
$ |
18.30 |
|
|
$ |
18.73 |
|
* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures, see Table 6. Non-GAAP Financial Measures
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
TABLE 2. YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST INCOME (Unaudited)
(Dollars in thousands)
|
|
For the year ended |
|
|
For the year ended |
|
|
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average
Yield/Rate(3)(4) |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average
Yield/Rate(3)(4) |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
$ |
2,607,640 |
|
|
$ |
149,298 |
|
|
|
5.73 |
% |
|
$ |
2,388,509 |
|
|
$ |
137,048 |
|
|
|
5.74 |
% |
|
Total securities |
|
920,618 |
|
|
|
23,519 |
|
|
|
2.55 |
% |
|
|
805,855 |
|
|
|
22,032 |
|
|
|
2.73 |
% |
|
Federal funds sold and other |
|
83,887 |
|
|
|
2,682 |
|
|
|
3.20 |
% |
|
|
77,681 |
|
|
|
2,476 |
|
|
|
3.19 |
% |
|
Total interest-earning assets |
|
3,612,145 |
|
|
|
175,499 |
|
|
|
4.86 |
% |
|
|
3,272,045 |
|
|
|
161,556 |
|
|
|
4.94 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
1,699,952 |
|
|
|
21,008 |
|
|
|
1.24 |
% |
|
|
1,401,326 |
|
|
|
12,683 |
|
|
|
0.91 |
% |
|
Certificates of deposit |
|
967,803 |
|
|
|
19,906 |
|
|
|
2.06 |
% |
|
|
836,298 |
|
|
|
13,004 |
|
|
|
1.56 |
% |
|
Total interest-bearing deposits |
|
2,667,755 |
|
|
|
40,914 |
|
|
|
1.53 |
% |
|
|
2,237,624 |
|
|
|
25,687 |
|
|
|
1.15 |
% |
|
FHLB advances & LOC |
|
277,328 |
|
|
|
6,667 |
|
|
|
2.40 |
% |
|
|
430,490 |
|
|
|
9,039 |
|
|
|
2.10 |
% |
|
Other borrowings |
|
69,270 |
|
|
|
2,060 |
|
|
|
2.97 |
% |
|
|
72,062 |
|
|
|
2,032 |
|
|
|
2.82 |
% |
|
Total interest-bearing liabilities |
|
3,014,353 |
|
|
|
49,641 |
|
|
|
1.65 |
% |
|
|
2,740,176 |
|
|
|
36,758 |
|
|
|
1.34 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
125,858 |
|
|
|
|
|
|
|
|
|
|
$ |
124,798 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.21 |
% |
|
|
|
|
|
|
|
|
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.48 |
% |
|
|
|
|
|
|
|
|
|
|
3.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan balances include nonaccrual loans. |
|
|
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. |
|
|
(3) Tax exempt income is not included in the above table on a tax-equivalent basis. |
|
|
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
|
|
|
For the year ended |
|
|
|
December 31, 2019 vs. 2018 |
|
|
|
Total Increase/(Decrease) |
|
|
|
Volume
Variance(1) |
|
|
Yield/Rate
Variance(1) |
|
|
Total
Variance |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
12,547 |
|
|
$ |
(297 |
) |
|
$ |
12,250 |
|
|
Total securities |
|
2,955 |
|
|
|
(1,468 |
) |
|
|
1,487 |
|
|
Federal funds sold and other |
|
198 |
|
|
|
8 |
|
|
|
206 |
|
|
Total interest-earning assets |
|
15,700 |
|
|
|
(1,757 |
) |
|
|
13,943 |
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
3,125 |
|
|
|
5,200 |
|
|
|
8,325 |
|
|
Certificates of deposit |
|
2,261 |
|
|
|
4,641 |
|
|
|
6,902 |
|
|
Total interest-bearing deposits |
|
5,386 |
|
|
|
9,841 |
|
|
|
15,227 |
|
|
FHLB advances & LOC |
|
(3,548 |
) |
|
|
1,176 |
|
|
|
(2,372 |
) |
|
Other borrowings |
|
(80 |
) |
|
|
108 |
|
|
|
28 |
|
|
Total interest-bearing liabilities |
|
1,758 |
|
|
|
11,125 |
|
|
|
12,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
13,942 |
|
|
$ |
(12,882 |
) |
|
$ |
1,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The effect of changes in volume is determined by multiplying the change in volume by the previous year's average rate. Similarly, the effect of rate changes is calculated by multiplying the change in average rate by the prior year's volume. The changes attributable to both volume and rate, which cannot be segregated, have been allocated to the volume variance and the rate variance in proportion to the relationship of the absolute dollar amount of the change in each. |
|
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
TABLE 3. QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME (Unaudited)
(Dollars in thousands)
|
|
For the three months ended |
|
|
For the three months ended |
|
|
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average
Yield/Rate(3)(4) |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average
Yield/Rate(3)(4) |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
$ |
2,568,301 |
|
|
$ |
36,687 |
|
|
|
5.67 |
% |
|
$ |
2,590,610 |
|
|
$ |
38,564 |
|
|
|
5.91 |
% |
|
Total securities |
|
911,923 |
|
|
|
5,652 |
|
|
|
2.46 |
% |
|
|
893,642 |
|
|
|
6,360 |
|
|
|
2.82 |
% |
|
Federal funds sold and other |
|
83,418 |
|
|
|
645 |
|
|
|
3.07 |
% |
|
|
94,235 |
|
|
|
656 |
|
|
|
2.76 |
% |
|
Total interest-earning assets |
|
3,563,642 |
|
|
|
42,984 |
|
|
|
4.79 |
% |
|
|
3,578,487 |
|
|
|
45,580 |
|
|
|
5.05 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
1,683,157 |
|
|
|
4,094 |
|
|
|
0.97 |
% |
|
|
1,524,972 |
|
|
|
4,528 |
|
|
|
1.18 |
% |
|
Certificates of deposit |
|
880,362 |
|
|
|
4,439 |
|
|
|
2.00 |
% |
|
|
976,255 |
|
|
|
4,593 |
|
|
|
1.87 |
% |
|
Total interest-bearing deposits |
|
2,563,519 |
|
|
|
8,533 |
|
|
|
1.32 |
% |
|
|
2,501,227 |
|
|
|
9,121 |
|
|
|
1.45 |
% |
|
FHLB advances & LOC |
|
310,592 |
|
|
|
1,564 |
|
|
|
2.00 |
% |
|
|
395,239 |
|
|
|
2,491 |
|
|
|
2.50 |
% |
|
Other borrowings |
|
66,969 |
|
|
|
482 |
|
|
|
2.86 |
% |
|
|
85,178 |
|
|
|
632 |
|
|
|
2.94 |
% |
|
Total interest-bearing liabilities |
|
2,941,080 |
|
|
|
10,579 |
|
|
|
1.43 |
% |
|
|
2,981,644 |
|
|
|
12,244 |
|
|
|
1.63 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
32,405 |
|
|
|
|
|
|
|
|
|
|
$ |
33,336 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
|
|
|
|
|
3.70 |
% |
|
(1) Average loan balances include nonaccrual loans. |
|
|
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. |
|
|
(3) Tax exempt income is not included in the above table on a tax-equivalent basis. |
|
|
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
|
|
|
For the three months ended |
|
|
|
December 31, 2019 vs. 2018 |
|
|
|
Total Increase/(Decrease) |
|
|
|
Volume
Variance(1) |
|
|
Yield/Rate
Variance (1) |
|
|
Total
Variance |
|
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
$ |
(330 |
) |
|
$ |
(1,547 |
) |
|
$ |
(1,877 |
) |
|
Total securities |
|
126 |
|
|
|
(834 |
) |
|
|
(708 |
) |
|
Federal funds sold and other |
|
(79 |
) |
|
|
68 |
|
|
|
(11 |
) |
|
Total interest-earning assets |
|
(283 |
) |
|
|
(2,313 |
) |
|
|
(2,596 |
) |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
449 |
|
|
|
(883 |
) |
|
|
(434 |
) |
|
Certificates of deposit |
|
(470 |
) |
|
|
316 |
|
|
|
(154 |
) |
|
Total interest-bearing deposits |
|
(21 |
) |
|
|
(567 |
) |
|
|
(588 |
) |
|
FHLB advances & LOC |
|
(478 |
) |
|
|
(449 |
) |
|
|
(927 |
) |
|
Other borrowings |
|
(119 |
) |
|
|
(31 |
) |
|
|
(150 |
) |
|
Total interest-bearing liabilities |
|
(618 |
) |
|
|
(1,047 |
) |
|
|
(1,665 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
335 |
|
|
$ |
(1,266 |
) |
|
$ |
(931 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The effect of changes in volume is determined by multiplying the change in volume by the previous year's average rate. Similarly, the effect of rate changes is calculated by multiplying the change in average rate by the prior year's volume. The changes attributable to both volume and rate, which cannot be segregated, have been allocated to the volume variance and the rate variance in proportion to the relationship of the absolute dollar amount of the change in each. |
|
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
TABLE 4. CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
|
|
|
December 31, |
|
|
December 31, |
|
|
|
|
2019 |
|
|
2018 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
88,973 |
|
|
$ |
192,735 |
|
|
Federal funds sold |
|
|
318 |
|
|
|
83 |
|
|
Cash and cash equivalents |
|
|
89,291 |
|
|
|
192,818 |
|
|
Interest-bearing time deposits in other banks |
|
|
2,498 |
|
|
|
4,991 |
|
|
Available-for-sale securities |
|
|
142,067 |
|
|
|
168,875 |
|
|
Held-to-maturity securities, fair value of $783,912 and $739,989 |
|
|
769,059 |
|
|
|
748,356 |
|
|
Loans held for sale |
|
|
5,933 |
|
|
|
2,972 |
|
|
Loans, net of allowance for loan losses of $12,232 and $11,454 |
|
|
2,544,420 |
|
|
|
2,563,954 |
|
|
Other real estate owned, net |
|
|
8,293 |
|
|
|
6,372 |
|
|
Premises and equipment, net |
|
|
84,478 |
|
|
|
80,442 |
|
|
Bank-owned life insurance |
|
|
75,103 |
|
|
|
73,105 |
|
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
|
31,137 |
|
|
|
29,214 |
|
|
Interest receivable |
|
|
15,738 |
|
|
|
17,372 |
|
|
Goodwill |
|
|
136,432 |
|
|
|
131,712 |
|
|
Core deposit intangibles, net |
|
|
19,907 |
|
|
|
21,725 |
|
|
Other |
|
|
25,222 |
|
|
|
19,808 |
|
|
Total assets |
|
$ |
3,949,578 |
|
|
$ |
4,061,716 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
481,298 |
|
|
$ |
503,831 |
|
|
Total non-interest-bearing deposits |
|
|
481,298 |
|
|
|
503,831 |
|
|
Savings, NOW and money market |
|
|
1,749,048 |
|
|
|
1,611,710 |
|
|
Time |
|
|
833,170 |
|
|
|
1,007,906 |
|
|
Total interest-bearing deposits |
|
|
2,582,218 |
|
|
|
2,619,616 |
|
|
Total deposits |
|
|
3,063,516 |
|
|
|
3,123,447 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
35,708 |
|
|
|
50,068 |
|
|
Federal Home Loan Bank advances |
|
|
324,373 |
|
|
|
384,898 |
|
|
Bank stock loan |
|
|
8,990 |
|
|
|
15,450 |
|
|
Subordinated debentures |
|
|
14,561 |
|
|
|
14,260 |
|
|
Contractual obligations |
|
|
5,836 |
|
|
|
3,965 |
|
|
Interest payable and other liabilities |
|
|
18,534 |
|
|
|
13,687 |
|
|
Total liabilities |
|
|
3,471,518 |
|
|
|
3,605,775 |
|
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
Common stock |
|
|
174 |
|
|
|
173 |
|
|
Additional paid-in capital |
|
|
382,731 |
|
|
|
379,085 |
|
|
Retained earnings |
|
|
125,757 |
|
|
|
101,326 |
|
|
Accumulated other comprehensive loss |
|
|
(3 |
) |
|
|
(4,867 |
) |
|
Employee stock loans |
|
|
(77 |
) |
|
|
(121 |
) |
|
Treasury stock |
|
|
(30,522 |
) |
|
|
(19,655 |
) |
|
Total stockholders’ equity |
|
|
478,060 |
|
|
|
455,941 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
3,949,578 |
|
|
$ |
4,061,716 |
|
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
TABLE 5. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
Three months ended
December 31, |
|
|
Year ended
December 31, |
|
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
36,687 |
|
|
$ |
38,564 |
|
|
$ |
149,298 |
|
|
$ |
137,048 |
|
|
Securities, taxable |
|
|
4,615 |
|
|
|
5,272 |
|
|
|
19,339 |
|
|
|
17,943 |
|
|
Securities, nontaxable |
|
|
1,037 |
|
|
|
1,088 |
|
|
|
4,180 |
|
|
|
4,089 |
|
|
Federal funds sold and other |
|
|
645 |
|
|
|
656 |
|
|
|
2,682 |
|
|
|
2,476 |
|
|
Total interest and dividend income |
|
|
42,984 |
|
|
|
45,580 |
|
|
|
175,499 |
|
|
|
161,556 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
8,533 |
|
|
|
9,121 |
|
|
|
40,914 |
|
|
|
25,687 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
39 |
|
|
|
37 |
|
|
|
155 |
|
|
|
114 |
|
|
Federal Home Loan Bank advances |
|
|
1,564 |
|
|
|
2,491 |
|
|
|
6,667 |
|
|
|
9,039 |
|
|
Bank stock loan |
|
|
147 |
|
|
|
283 |
|
|
|
654 |
|
|
|
731 |
|
|
Subordinated debentures |
|
|
296 |
|
|
|
312 |
|
|
|
1,251 |
|
|
|
1,187 |
|
|
Total interest expense |
|
|
10,579 |
|
|
|
12,244 |
|
|
|
49,641 |
|
|
|
36,758 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
32,405 |
|
|
|
33,336 |
|
|
|
125,858 |
|
|
|
124,798 |
|
|
Provision for loan losses |
|
|
1,055 |
|
|
|
750 |
|
|
|
18,354 |
|
|
|
3,961 |
|
|
Net interest income after provision for loan losses |
|
|
31,350 |
|
|
|
32,586 |
|
|
|
107,504 |
|
|
|
120,837 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,241 |
|
|
|
2,029 |
|
|
|
8,672 |
|
|
|
7,250 |
|
|
Debit card income |
|
|
2,101 |
|
|
|
1,736 |
|
|
|
8,230 |
|
|
|
6,178 |
|
|
Mortgage banking |
|
|
770 |
|
|
|
281 |
|
|
|
2,469 |
|
|
|
1,298 |
|
|
Increase in value of bank-owned life insurance |
|
|
503 |
|
|
|
518 |
|
|
|
1,997 |
|
|
|
2,199 |
|
|
Net gains (losses) from securities transactions |
|
|
(3 |
) |
|
|
5 |
|
|
|
14 |
|
|
|
(9 |
) |
|
Other |
|
|
1,029 |
|
|
|
880 |
|
|
|
3,606 |
|
|
|
2,809 |
|
|
Total non-interest income |
|
|
6,641 |
|
|
|
5,449 |
|
|
|
24,988 |
|
|
|
19,725 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
11,918 |
|
|
|
13,137 |
|
|
|
52,122 |
|
|
|
48,018 |
|
|
Net occupancy and equipment |
|
|
2,342 |
|
|
|
2,188 |
|
|
|
8,674 |
|
|
|
8,126 |
|
|
Data processing |
|
|
2,688 |
|
|
|
2,257 |
|
|
|
10,124 |
|
|
|
8,094 |
|
|
Professional fees |
|
|
1,358 |
|
|
|
1,157 |
|
|
|
4,733 |
|
|
|
3,402 |
|
|
Advertising and business development |
|
|
901 |
|
|
|
916 |
|
|
|
3,075 |
|
|
|
3,002 |
|
|
Telecommunications |
|
|
486 |
|
|
|
523 |
|
|
|
2,079 |
|
|
|
1,775 |
|
|
FDIC insurance |
|
|
109 |
|
|
|
325 |
|
|
|
1,228 |
|
|
|
1,536 |
|
|
Courier and postage |
|
|
328 |
|
|
|
304 |
|
|
|
1,348 |
|
|
|
1,183 |
|
|
Free nationwide ATM cost |
|
|
440 |
|
|
|
369 |
|
|
|
1,680 |
|
|
|
1,355 |
|
|
Amortization of core deposit intangibles |
|
|
821 |
|
|
|
740 |
|
|
|
3,169 |
|
|
|
2,443 |
|
|
Loan expense |
|
|
267 |
|
|
|
195 |
|
|
|
875 |
|
|
|
1,005 |
|
|
Other real estate owned |
|
|
381 |
|
|
|
(23 |
) |
|
|
707 |
|
|
|
(71 |
) |
|
Merger expenses |
|
|
— |
|
|
|
938 |
|
|
|
915 |
|
|
|
7,462 |
|
|
Other |
|
|
2,807 |
|
|
|
2,112 |
|
|
|
8,906 |
|
|
|
7,057 |
|
|
Total non-interest expense |
|
|
24,846 |
|
|
|
25,138 |
|
|
|
99,635 |
|
|
|
94,387 |
|
|
Income before income tax |
|
|
13,145 |
|
|
|
12,897 |
|
|
|
32,857 |
|
|
|
46,175 |
|
|
Provision for income taxes |
|
|
3,131 |
|
|
|
2,972 |
|
|
|
7,278 |
|
|
|
10,350 |
|
|
Net income and net income allocable to common stockholders |
|
$ |
10,014 |
|
|
$ |
9,925 |
|
|
$ |
25,579 |
|
|
$ |
35,825 |
|
|
Basic earnings per share |
|
$ |
0.65 |
|
|
$ |
0.63 |
|
|
$ |
1.64 |
|
|
$ |
2.33 |
|
|
Diluted earnings per share |
|
$ |
0.64 |
|
|
$ |
0.62 |
|
|
$ |
1.61 |
|
|
$ |
2.28 |
|
Equity Bancshares, Inc.
PRESS RELEASE - 01/23/2020
TABLE 6. Non-GAAP Financial Measures (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
As of and for the three months ended |
|
|
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
Total stockholders' equity |
|
$ |
478,060 |
|
|
$ |
467,050 |
|
|
$ |
458,406 |
|
|
$ |
453,463 |
|
|
$ |
455,941 |
|
|
Less: goodwill |
|
|
136,432 |
|
|
|
136,432 |
|
|
|
136,432 |
|
|
|
136,432 |
|
|
|
131,712 |
|
|
Less: core deposit intangibles, net |
|
|
19,907 |
|
|
|
20,727 |
|
|
|
21,512 |
|
|
|
22,296 |
|
|
|
21,725 |
|
|
Less: mortgage servicing asset, net |
|
|
5 |
|
|
|
7 |
|
|
|
8 |
|
|
|
10 |
|
|
|
11 |
|
|
Less: naming rights, net |
|
|
1,174 |
|
|
|
1,184 |
|
|
|
1,195 |
|
|
|
1,206 |
|
|
|
1,217 |
|
|
Tangible common equity |
|
$ |
320,542 |
|
|
$ |
308,700 |
|
|
$ |
299,259 |
|
|
$ |
293,519 |
|
|
$ |
301,276 |
|
|
Common shares issued at period end |
|
|
15,444,434 |
|
|
|
15,440,334 |
|
|
|
15,563,873 |
|
|
|
15,820,303 |
|
|
|
15,793,095 |
|
|
RSU shares vested |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
108 |
|
|
|
— |
|
|
Common shares outstanding at period end |
|
|
15,444,434 |
|
|
|
15,440,334 |
|
|
|
15,563,873 |
|
|
|
15,820,411 |
|
|
|
15,793,095 |
|
|
Diluted common shares outstanding at period end |
|
|
15,719,810 |
|
|
|
15,647,456 |
|
|
|
15,758,747 |
|
|
|
16,036,700 |
|
|
|
16,085,729 |
|
|
Book value per common share |
|
$ |
30.95 |
|
|
$ |
30.25 |
|
|
$ |
29.45 |
|
|
$ |
28.66 |
|
|
$ |
28.87 |
|
|
Tangible book value per common share |
|
$ |
20.75 |
|
|
$ |
19.99 |
|
|
$ |
19.23 |
|
|
$ |
18.55 |
|
|
$ |
19.08 |
|
|
Tangible book value per diluted common share |
|
$ |
20.39 |
|
|
$ |
19.73 |
|
|
$ |
18.99 |
|
|
$ |
18.30 |
|
|
$ |
18.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
3,949,578 |
|
|
$ |
4,074,663 |
|
|
$ |
4,180,074 |
|
|
$ |
4,065,354 |
|
|
$ |
4,061,716 |
|
|
Less: goodwill |
|
|
136,432 |
|
|
|
136,432 |
|
|
|
136,432 |
|
|
|
136,432 |
|
|
|
131,712 |
|
|
Less: core deposit intangibles, net |
|
|
19,907 |
|
|
|
20,727 |
|
|
|
21,512 |
|
|
|
22,296 |
|
|
|
21,725 |
|
|
Less: mortgage servicing asset, net |
|
|
5 |
|
|
|
7 |
|
|
|
8 |
|
|
|
10 |
|
|
|
11 |
|
|
Less: naming rights, net |
|
|
1,174 |
|
|
|
1,184 |
|
|
|
1,195 |
|
|
|
1,206 |
|
|
|
1,217 |
|
|
Tangible assets |
|
$ |
3,792,060 |
|
|
$ |
3,916,313 |
|
|
$ |
4,020,927 |
|
|
$ |
3,905,410 |
|
|
$ |
3,907,051 |
|
|
Total stockholders' equity to total assets |
|
|
12.10 |
% |
|
|
11.46 |
% |
|
|
10.97 |
% |
|
|
11.15 |
% |
|
|
11.23 |
% |
|
Tangible common equity to tangible assets |
|
|
8.45 |
% |
|
|
7.88 |
% |
|
|
7.44 |
% |
|
|
7.52 |
% |
|
|
7.71 |
% |
|
Total average stockholders' equity |
|
$ |
473,562 |
|
|
$ |
463,252 |
|
|
$ |
457,103 |
|
|
$ |
459,713 |
|
|
$ |
449,450 |
|
|
Less: average intangible assets |
|
|
157,993 |
|
|
|
158,760 |
|
|
|
159,562 |
|
|
|
157,315 |
|
|
|
154,944 |
|
|
Average tangible common equity |
|
$ |
315,569 |
|
|
$ |
304,492 |
|
|
$ |
297,541 |
|
|
$ |
302,398 |
|
|
$ |
294,506 |
|
|
Net income (loss) allocable to common stockholders |
|
$ |
10,014 |
|
|
$ |
10,406 |
|
|
$ |
9,232 |
|
|
$ |
(4,073 |
) |
|
$ |
9,925 |
|
|
Amortization of intangible assets |
|
|
833 |
|
|
|
797 |
|
|
|
797 |
|
|
|
791 |
|
|
|
752 |
|
|
Less: tax effect of intangible assets amortization |
|
|
175 |
|
|
|
167 |
|
|
|
167 |
|
|
|
166 |
|
|
|
158 |
|
|
Adjusted net income (loss) allocable to common stockholders |
|
$ |
10,672 |
|
|
$ |
11,036 |
|
|
$ |
9,862 |
|
|
$ |
(3,448 |
) |
|
$ |
10,519 |
|
|
Return on total average stockholders' equity (ROAE) annualized |
|
|
8.39 |
% |
|
|
8.91 |
% |
|
|
8.10 |
% |
|
|
(3.59 |
)% |
|
|
8.76 |
% |
|
Return on average tangible common equity (ROATCE) annualized |
|
|
13.42 |
% |
|
|
14.38 |
% |
|
|
13.29 |
% |
|
|
(4.62 |
)% |
|
|
14.17 |
% |
|
Non-interest expense |
|
$ |
24,846 |
|
|
$ |
24,223 |
|
|
$ |
25,023 |
|
|
$ |
25,543 |
|
|
$ |
25,138 |
|
|
Less: merger expenses |
|
|
— |
|
|
|
— |
|
|
|
276 |
|
|
|
639 |
|
|
|
938 |
|
|
Non-interest expense, excluding merger expenses |
|
$ |
24,846 |
|
|
$ |
24,223 |
|
|
$ |
24,747 |
|
|
$ |
24,904 |
|
|
$ |
24,200 |
|
|
Net interest income |
|
$ |
32,405 |
|
|
$ |
31,526 |
|
|
$ |
31,288 |
|
|
$ |
30,639 |
|
|
$ |
33,336 |
|
|
Non-interest income |
|
|
6,641 |
|
|
|
6,572 |
|
|
|
6,451 |
|
|
|
5,324 |
|
|
|
5,449 |
|
|
Less: net gains (losses) from securities transactions |
|
|
(3 |
) |
|
|
4 |
|
|
|
7 |
|
|
|
6 |
|
|
|
5 |
|
|
Non-interest income, excluding gains (losses) from securities transactions |
|
$ |
6,644 |
|
|
$ |
6,568 |
|
|
$ |
6,444 |
|
|
$ |
5,318 |
|
|
$ |
5,444 |
|
|
Net interest income plus non-interest income, excluding net gains (losses) from securities transactions |
|
$ |
39,049 |
|
|
$ |
38,094 |
|
|
$ |
37,732 |
|
|
$ |
35,957 |
|
|
$ |
38,780 |
|
|
Non-interest expense to net interest income plus non-interest income |
|
|
63.63 |
% |
|
|
63.58 |
% |
|
|
66.31 |
% |
|
|
71.03 |
% |
|
|
64.81 |
% |
|
Efficiency ratio |
|
|
63.63 |
% |
|
|
63.59 |
% |
|
|
65.59 |
% |
|
|
69.26 |
% |
|
|
62.40 |
% |
Fourth Quarter and Year End 2019 Results Presentation January 23, 2020 Exhibit 99.2
NASDAQ: EQBK 15.4 million shares outstanding / $436.9 million (1) $3.95 billion Market Cap 65.5% Exchange / Ticker Total Assets Efficiency Ratio (2) Locations FTEs Loan Portfolio 52 branches in Kansas, Missouri, Arkansas and Oklahoma 607 45% of loans in commercial real estate, 20% in residential real estate, and 23% in commercial About EQBK Note: All financial data is as of or for period ended December 31, 2019 unless otherwise noted. Market Cap calculated based on January 17, 2020 closing price of $28.29. (2) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Total Gross Loans $2.56 billion Total Deposits $3.06 billion
Equity Bancshares – Share Price & Consensus Estimates As of January 17, 2020 market closing. Estimates as of January 17, 2020. Non-GAAP financial measures. See the non-GAAP reconciliation at the end of this presentation. Based on 15,444,434 shares outstanding as of January 17, 2020. Share price data from S&P Global Market Intelligence Share Price % Change Monthly Price/Earnings Ratio vs. Historical Average Recent Price(1) $28.29 Median Consensus Price Target(2) $33.50 Tangible Book Value per Share(3) $20.75 2019 Q4 EPS Consensus Estimate(2) $0.60 2019 EPS Consensus Estimate(2) $1.58 Price to 2019 Consensus Earnings(1,2) 17.9x Price(1) to Tangible Book Value per Share(4) 1.4x Market Capitalization(1,4) $436.9
Franchise Overview
Note: Gray shading indicates capital activity. * Data as of 12/31/2007. ** Data as of 12/31/2011. *** Data as of 12/31/2016. ****As of 12/31/2019. 2009 $8.8MM of TARP issued Opened 2 branches in Overland Park, KS 2014 Repurchased 1.3mm shares Refinanced TARP with Loan Close/Sell 3 branches and opened branch at Waterfront 2012 First Community Bancshares (FCB) merger $20.4MM Capital Raise 2011 Repaid TARP with SBLF Purchase of 4 branches from Citizens Bancshares (Topeka) 2003-2004 Acquisition of National Bank of Andover Rebrand as Equity Bank 2005 Purchase of 2 Wichita branches from Hillcrest Bancshares 2006 Charter of FNB of Sarcoxie, MO acquisition Acquisition of Mortgage Centre, LLC Opened 2 branches in MO 2008 Ellis State Bank acquisition (Ellis/Hays) Branch opened in Lee’s Summit, MO 2010 $20.0MM Capital Raise to fund growth 2013 Integrate FCB and double earnings CFO and CRO roles filled Implement repositioning initiatives 2007 Signature Bank KC acquisition Phase I Phase II Phase III Start-Up 2003 - 2007 Growth 2008 - 2011 Leverage Infrastructure Profitably 2012 - 2016 $2.2B Total Assets $287MM $610MM * ** *** 2015 First Independence (FFSL) merger IPO Continue Building Value via Strategic Execution 2016 Community First (CFBI) merger Completed $35.4MM private placement capital raise (PIPE) Phase IV Platform for Best in Class 2017-present 2017 Closed Prairie State merger (March) Hired CIO: John Blakeney Closed Patriot Bank merger (November) Closed Eastman Bank merger (November) $3.9B **** 2018 Hired COO: Craig Anderson, CCO: Craig Mayo Closed First National Bank Liberal/Hugoton merger (May) Closed Adams Dairy Bank merger (May) Closed City Bank and Trust merger (August) 2019 Hired Gaylyn McGregor, EVP of Trust and Wealth Management and Glen Malan, EVP Trust & Estate Advisor Implemented Q2 digital banking platform Closed acquisition of three branches in Guymon and Cordell, Oklahoma from Mid-First Bank (February) Began EQBK stock repurchase program
Diluted earnings per share of $0.64 for 4Q 2019 Net income to common stockholders was $10.0 million EQBK Capital Ratios as of 12/31/2019: Leverage Ratio of 9.02% Total Risk-Based Capital Ratio of 12.59% Tangible Common Equity to Tangible Assets of 8.45%(1) Tangible common book value per share of $20.75(1) Continued growth in non-interest income Y/Y and Q/Q Improvement in our non-performing asset portfolio, exclusive of the previously disclosed specific credit, Q/Q: Nonaccrual assets are down 27.7% Classified assets as a percentage of total regulatory capital is down 30.6% Year to Date share repurchases of 421,016, none during the quarter. Remaining shares authorized to be repurchased are 678,984 as of quarter end. Current repurchase authorization period is expected to end October 30, 2020. 2019 Fourth Quarter Highlights Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Continued Booking Assets Within Our New Trust & Wealth Management Business Proactive Management of Cost of Funds Resulting in Improvement in Net Interest Margin Q/Q Continued Growth in Online Banking Utilization by Customer Base
Operating Performance Trends – Year-over-Year Diluted EPS and Net Income to Common Stockholders Return on Average Tangible Common Equity(1,2) Efficiency Ratio(1,2) & Non-Interest Expense / Average Assets Income(2) and Net Interest Margin Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Does not include gains on sales and settlement of securities or bargain purchase gains associated with acquisitions. Adjusted for merger expenses, first quarter 2019 identified specific impairment charge, and FDIC premium credit received in the third quarter 2019. (3) (3)
Operating Performance Trends – Quarter-over-Quarter Diluted EPS and Net Income to Common Stockholders Return on Average Tangible Common Equity(1,2) Efficiency Ratio(1,2) & Non-Interest Expense / Average Assets Income(2) and Net Interest Margin Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Does not include gains on sales and settlement of securities or bargain purchase gains associated with acquisitions. Adjusted for merger expenses, first quarter 2019 identified specific impairment charge, and third quarter FDIC assessment credit. (3) (3)
Interest Income & Net Interest Margin Performance Notes: Improved Q4 interest margin through proactive management of liability costs. Approximately maintained loan yields in a declining rate environment. (1) (1) Includes Non-interest bearing deposits
Margin Dynamic EQBK begins raising deposit rates, with a focus on locking in time deposits at fixed rates to get ahead of the curve. 6/30 – 12/31/18 – EQBK reduced exposure to FHLB advances by $275MM from $600MM to $325MM as market rates continued to rise.
Non-Interest Income Does not include gains on sales and settlement of securities. Performance Notes: Continued strong performance in service income generation, including year-over-year growth for the fourth quarter of 21% in debit card income and 10% in deposit related service charges Mortgage Banking increased 174% as compared to the fourth quarter 2018
Digital Services: Online Banking Mobile App Seamless Online and Mobile Experience Across Devices Biometric ID Validation FaceID Validation Mobile Check Deposit Online Bill Pay Mobile Bill Pay Person-to-Person Payments Customized Personal Financial Management Commercial Online Banking Positive Pay ApplePay, GooglePay, SamsungPay Compatible with Venmo and PayPal Voice Enabled Alexa Bill Pay Online Consumer Lending Online Mortgage Lending Online Account Opening in Development Shazam Bolt$ Fraud Protection App All provided with the goal of expanding our reach while meeting the needs of our customers in an environment which is measurable and scalable. Digital Banking Online/Mobile Banking Active Users: Up 29.4% Mobile Deposits: # - Up 54.4% $ - Up 91.9% Bill Pay: Subscribers – Up 5.8% Active Users – Up 7.6% Online Banking Logins: Up 45.8% (1) Growth statistics are shown from implementation of our new online banking platform on January 23, 2019 through December 31, 2019.
Develop a new product offering for both commercial and consumer costumers to assist with their credit needs, further enhancing development of relational banking. Within this offering provide a robust suite of card types meeting varying needs of our current and prospective customer base. Meet the need of our current and prospective customer base for available credit to fund business operations and personal expenses while capitalizing on fee revenue opportunity by assuming the position of provider. 2019 Actions: Solidified vendor relationships to provide the highest quality service to our current and future clients while also providing scalability as we build. Developed a full suite of products and related infrastructure to ensure best in class service to each current and prospective banking customer. Products will include: Commercial and consumer credit cards Purchase cards Payroll cards Debit cards Commercial Focused Card Business Strategy Opportunity
Develop a comprehensive suite of products and offerings for trust and wealth management customers, including: Private Banking Investment Management Trust Services Estate and Financial Planning Our footprint is diverse, with strong need for trust and wealth management services. Our one-stop, relationship-focused approach has the ability to fill those needs while building lasting value for our customers, the Bank, and our shareholders. 2019 Actions: Recruited and hired an experienced, entrepreneurial team led by Gaylyn McGregor and Glen Malan Solidified vendor relationships to provide the highest quality service to our current and future clients while also providing scalability as we build. Developed a full suite of products and related infrastructure to ensure best in class service to each current and prospective client of the business. Trust & Wealth Business Strategy Opportunity
Non-Interest Expense Performance Notes: Increased expenditures related to reduction of non-performing assets, including professional fees and OREO losses of $836. Exclusive of the additional non-performing asset expense, non-interest expense is down Q/Q as the management team continues to strive for greater efficiency in operations. Does not include merger expenses.
Right-size the Bank’s footprint in our market area to efficiently and effectively service current customers while continuing to build market share. Targeted consolidation of overlapping banking centers within our footprint which would be expected to result in increased efficiency for the network as a whole while not significantly impacting the customer base. Branch Network Optimization Strategy Opportunity
Tangible Book Value Tangible Book Value per Share(1) and Asset Growth TBV CAGR 2015 - 4Q 2019: 6.76% Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Capital Position Over Time IPO * Paid off Series C preferred stock in January 2016 Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. (1)
Total Loans by Purpose(1) Gross Total Loans ($000s) $2,117,270 $2,575,408 $960,355 $1,383,605 Year-to-Date Loan Yield 5.31% 4.98% 5.43% 5.74% $2,556,652 5.73% For financial statement reporting, management considers other factors in addition to purpose when assessing risk and identifying reporting classes. As such, the above is not intended to reconcile to the company’s loan disclosures within the applicable financial statement.
Metro Market Organic Loan & Bank-Wide Core Organic Deposit Growth Metro Market Organic Loan Growth Since 12/31/2015 Bank-Wide Core(1) Organic Deposit Growth Since 12/31/2015 Defined as Equity signature deposits, including checking, savings, and money market accounts.
Asset Quality – Year-over-Year Nonperforming Assets 0.89% NPAs / Assets 1.43% Net Charge-Offs (NCO)/ Average Loans $3.50 $1.19 NCO ($ in millions) Nonaccrual Detail Classified Assets to Total Regulatory Capital $0.89 1.52% 1.19% $17.58 68.5% 75.9% Purchased impaired loans classified as non-accrual that are current 37.3% 0.98% $1.01 Adjusted to exclude impact of credit specifically identified in March 31, 2019 Form 10-Q. Impact of credit specifically identified in March 31, 2019 Form 10-Q. Includes loans 90+ days past due and other repossessed assets which are not highlighted in the table. $2.40(1) (2) (1) (3)
Asset Quality – Quarter-over-Quarter Nonperforming Assets 0.98% NPAs / Assets 1.91% Net Charge-Offs (NCO)/ Average Loans $0.58 $0.31 NCO in $ ($ in millions) Nonaccrual Detail Classified Assets to Total Regulatory Capital $0.76 1.61% 1.19% $6.70 45.7% 54.6% Purchased impaired loans classified as non-accrual that are current 37.3% 1.40% $9.54 Adjusted to exclude impact of credit specifically identified in March 31, 2019 Form 10-Q. Impact of credit specifically identified in March 31, 2019 Form 10-Q. Includes loans 90+ days past due and other repossessed assets which are not highlighted in the table. $0.30(1) (2) (1) 59.9% 68.5% $0.21(1) $1.70 (1) (3) $0.19(1)
Total Deposits Total ($000s) $2,382,013 $3,123,447 $1,215,914 $1,630,451 Year-to-Date Cost of Deposits* 0.48% 0.56% 0.68% 0.96% * Includes interest and non-interest bearing deposits. $3,063,516 1.30%
Footprint & Target There are over 500 banks with deposits less than $750MM in our operating market.
Appendix
CRAIG ANDERSON Chief Operating Officer Joined Equity Bank in March 2018 Served as President of UMBF Commercial Banking More than 31 years of banking experience Executive Leadership BRAD ELLIOTT Chairman & CEO Founded Equity Bank in 2002 Served as Regional President of Sunflower Bank prior to forming Equity Bank More than 25 years of banking experience GREG KOSSOVER Chief Financial Officer Has served as CFO since 2013 and as a Director since 2011 Previously served as president of Physicians Development Group and CEO of Value Place, LLC, growing the latter to more than 150 locations in 25 states Brett Reber General Counsel Joined Equity Bank in October 2018 Previously served as Managing Partner of commercial law firm in Central Kansas More than 30 years experience in corporate and business law
Experienced Senior Leadership Team Team Member Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service 16 24 Julie Huber EVP, Strategic Initiatives 16 25 Craig Mayo EVP, Chief Credit Officer 1 35 John Blakeney EVP, Chief Information Officer 2 31 Gaylyn McGregor EVP, Director of Trust and Wealth Management 1 29 Mark Parman EVP, President - Kansas City and Director of Metro Banking 9 38 Glen Malan EVP, Trust & Estate Advisor 1 30 Patrick Salmans SVP, Human Resources Director 7 23 John Hanley SVP, Director of Marketing 6 15 Michael Bezanson SVP, CEO of Tulsa 2 36 Tina Call SVP, Chief Risk Officer 3 30 Brad Daniel SVP, Chief Deposit Strategy Officer 1 25 Shawna Palmieri SVP, Director of Treasury Management 1 14 Rob Quaney SVP, Chief Accounting Officer 4 20 Barbara Noyes SVP, Controller 8 33 Chris Navratil SVP, Finance 1 8 EQBK Team has 400+ Years of Combined Banking Experience
Diverse Market Segments Source: S&P Market Intelligence. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Equity Bank operates. Diverse market segments with economies based on transportation, manufacturing and healthcare Top employers in the region include a diverse range of operations such as telecommunications, professional services, aircraft manufacturing, OEM manufacturing and transportation. Equity Bancshares ranks in the Top 10 for market share in 22 of the 27 counties served and ranks in the Top 5 in 19 of those counties. As of June 30, 2019 Rank Holding Company Number of Branches Total Deposits In Market ($000) Market Share 1 UMB Financial Corp. (MO) 21 12,974,670 14.53% 2 Bank of America Corporation (NC) 52 10,593,595 11.86% 3 BOK Financial Corp. (OK) 27 9,372,426 10.50% 4 Commerce Bancshares Inc. (MO) 47 7,410,673 8.30% 5 Arvest Bank Group Inc. (AR) 56 5,193,768 5.82% 6 Capitol Federal Financial Inc (KS) 39 4,677,697 5.24% 7 U.S. Bancorp (MN) 57 3,537,830 3.96% 8 INTRUST Financial Corp. (KS) 27 3,454,848 3.87% 9 Equity Bancshares Inc. (KS) 53 3,189,244 3.57% 10 CrossFirst Bankshares Inc. (KS) 4 2,690,483 3.01% 11 Fidelity Financial Corp. (KS) 14 1,654,781 1.85% 12 Central Bancompany Inc. (MO) 30 1,339,182 1.50% 13 Emprise Financial Corp. (KS) 28 1,337,682 1.50% 14 NASB Financial Inc. (MO) 7 1,294,021 1.45% 15 Valley View Bancshares Inc. (KS) 16 973,814 1.09% 16 Wells Fargo & Co. (CA) 6 945,526 1.06% 17 Bank of Montreal 8 891,167 1.00% 18 Midland Financial Co. (OK) 10 860,379 0.96% 19 Prosperity Bancshares Inc. (TX) 10 824,703 0.92% 20 BancFirst Corp. (OK) 12 823,361 0.92% Total for Institutions in Market 852 89,300,113 100.00% Unemployment by County (%) 11/30/2019 11/30/2018 Benton AR 2.3 2.5 Boone AR 2.9 3.0 Carroll AR 2.7 2.6 Butler KS 3.0 3.1 Crawford KS 3.6 3.5 Ellis KS 2.0 2.1 Gove KS 2.1 2.0 Johnson KS 2.5 2.6 Montgomery KS 4.0 3.7 Sedgwick KS 3.2 3.3 Seward KS 2.9 3.1 Shawnee KS 3.0 3.2 Sheridan KS 1.8 2.1 Stevens KS 2.5 2.5 Wilson KS 3.9 3.7 Benton MO 4.4 3.1 Henry MO 3.2 2.7 Jackson MO 3.2 3.0 Johnson MO 3.4 2.7 Lafayette MO 2.7 2.4 Pettis MO 4.0 1.6 Platte MO 2.4 1.9 Saline MO 3.0 1.9 Kay OK 4.4 3.8 Texas OK 2.3 2.0 Tulsa OK 3.4 2.8 Washita OK 4.1 1.2
Market Data Boeing Cargill Meat Solutions Cessna Aircraft Co. Spirit AeroSystems Inc. Blue Cross and Blue Shield of Kansas and Oklahoma Hill’s Pet Nutrition Goodyear Tire Co. Jostens Publishing Hallmark Cards, Inc. H&R Block Honeywell Sprint Garmin Teva DST Systems Inc. Whiteman Airforce Base Stahl Specialty Co. Western Missouri Medical Center HaysMed Walmart FedEx Tyson Foods FlexSteel Wabash National Wichita St. University Pittsburg St. University Washburn University Fort Hays St. University University of Central Mo. University of Mo-KC KU – Edwards/Professional Phillips 66 Koch Industries Albertsons Lindsay AAON QuikTrip Williams Seaboard Foods American Century Investments, Inc. YRC Worldwide Inc. Major Employers in Equity Bank Footprint Source: S&P Market Intelligence Demographic Kansas Missouri Arkansas Oklahoma National Total Population (actual) 2,921,699 6,141,815 3,023,501 3,959,630 330,342,293 Population Change 2010-2020 (%) 2.40 2.55 3.69 5.55 7.00 Projected Change 2020-2025 (%) 1.38 1.63 2.23 2.97 3.27 Total Households (actual) 1,142,371 2,452,321 1,189,790 1,543,632 125,476,002 Median HH Income ($) 59,745 56,018 47,167 52,254 66,010 Projected HH Income Change 2020-2025 (%) 6.63 8.49 7.27 4.92 9.87 Per Capita Income ($) 32,451 31,359 26,849 28,718 36,492
Selected Income Statement Data Selected Income Statement Data ($000s) 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 2013 Interest income $,175,499 $,161,556 $,102,693 $61,799 $53,028 $46,845 Interest expense 49641 36758 16691 9202 6766 5610 Net interest income 125858 124798 86002 52597 46262 41235 Provision for loan losses 18354 3961 2953 2119 3047 2583 Net interest income after provision 107504 120837 83049 50478 43215 38652 Other income 24988 19725 15440 10466 9802 7892 Other expense 99635 94387 67463 47075 38575 35137 Income (loss) before income taxes 32857 46175 31026 13869 14442 11407 Income taxes 7278 10350 10377 4495 4142 3534 Net income (loss) 25579 35825 20649 9374 10300 7873 Less: dividends and discount accretion on preferred stock 0 0 0 1 177 978 Net income (loss) allocable to common stockholders $25,579 $35,825 $20,649 $9,373 $10,123 $6,895
Selected Balance Sheet Data Demonstrating balance sheet strength Includes interest-bearing deposits in other banks. (2) Includes Federal Reserve Bank and Federal Home Loan Bank stock. Selected Balance Sheet Data ($000s) ASSETS 12/31/14 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 Cash and cash equivalents (1) $37,702 $91,789 $,197,809 $55,691 $38,845 $62,074 Investment securities (2) 318314 942263 946445 722107 578093 452362 Net loans 720810 2550353 2566926 2111125 1382003 958353 Other assets 97689 365173 350536 281586 193251 112938 Total assets $1,174,515 $3,949,578 $4,061,716 $3,170,509 $2,192,192 $1,585,727 LIABILITIES & STOCKHOLDERS' EQUITY Deposits $,981,177 $3,063,516 $3,123,447 $2,382,013 $1,630,451 $1,215,914 Borrowings 70370 383632 464676 401652 293909 194064 Other liabilities 5239 24370 17652 12700 9868 8516 Total liabilities 1056786 3471518 3605775 2796365 1934228 1418494 Stockholders' Equity 117729 478060 455941 374144 257964 167233 Total liabilities and stockholders' equity $1,174,515 $3,949,578 $4,061,716 $3,170,509 $2,192,192 $1,585,727
Capitalization (1) Total common equity less goodwill and intangibles divided by shares outstanding as of period end. Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Maintaining a strong regulatory capital position Ratio 12/31/14 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 Leverage Ratio 9.6199999999999994E-2 9.0200000000000002E-2 8.5999999999999993E-2 0.1033 0.1181 9.4700000000000006E-2 Tier 1 Risk-Based Capital Ratio 0.13159999999999999 0.1215 0.1145 0.12139999999999999 0.14280000000000001 0.13850000000000001 Total Risk-Based Capital Ratio 0.1386 0.12590000000000001 0.1186 0.12509999999999999 0.14710000000000001 0.14349999999999999 Common Equity Tier 1 Capital to Risk Weighted Assets NA 0.1163 0.1095 0.1153 0.1338 0.1235 Tangible Book Value per Common Share(1) $13.54 $20.75 $19.079999999999998 $17.61 $16.64 $15.97
The subsequent tables present non-GAAP reconciliations of the following calculations: Tangible Common Equity (TCE) to Tangible Assets (TA) Ratio Tangible Book Value per Common Share Return on Average Tangible Common Equity (ROATCE) Efficiency Ratio
TCE to TA and Tangible Book Value per Share As of and for the years ended Non-GAAP Financial Measures (Unaudited) (Dollars in thousands, except per share data) December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2012 Total stockholders’ equity $,478,060 $,455,941 $,374,144 $,257,964 $,167,233 $,138,169 Less: preferred stock 0 0 0 0 16,372 31,884 Less: goodwill ,136,432 ,131,712 ,104,907 58,874 18,130 18,130 Less: core deposit intangibles, net 19,907 21,725 10,738 4,715 1,549 1,957 Less: mortgage servicing asset, net 5 11 17 23 29 Less: naming rights, net 1,174 1,217 1,260 0 0 0 Tangible common equity $,320,542 $,301,276 $,257,222 $,194,352 $,131,153 $86,198 Common shares outstanding at period end (1) 15,444,434 15,793,095 14,605,607 11,680,308 8,211,727 7,431,513 Book value per common share (1) $30.953546112470033 $28.869642080922077 $25.61646359511111 $22.085376515756259 $18.371409570727327 $14.301932863469389 Tangible book value per common share (1) $20.75453202105043 $19.076438152243114 $17.611181787925695 $16.639287251671785 $15.971427204046117 $11.598983948490705 Total assets $3,949,578 $4,061,716 $3,170,509 $2,192,192 $1,585,727 $1,188,850 Less: goodwill ,136,432 ,131,712 ,104,907 58,874 18,130 18,130 Less: core deposit intangibles, net 19,907 21,725 10,738 4,715 1,549 1,957 Less: mortgage servicing asset, net 5 11 17 23 29 Less: naming rights, net 1,174 1,217 1,260 0 0 0 Tangible assets $3,792,060 $3,907,051 $3,053,587 $2,128,580 $1,566,019 $1,168,763 Tangible common equity to tangible assets 8.4529780646930688E-2 7.7110843958781192E-2 8.4236014890029326E-2 9.1305941049901806E-2 8.3749303169374067E-2 7.3751479127932701E-2 (1) Share and per share data includes Class A and Class B common stock issued and outstanding and vested, but unissued RSU shares. Non-GAAP Financial Measures, continued (Unaudited) As of and for the three months ended As of and for the three months ended As of and for the three months ended As of and for the years ended (Dollars in thousands, except per share data) March 31, 2017 March 31, 2017 March 31, 2016 December 31,2015 December 31,2012 Total average stockholders' equity $,264,736 $,264,736 $,153,929 $,137,936 $,102,032 Less: average intangible assets and preferred stock 65,185 65,185 20,616 31,294 33,653 Average tangible common equity (1) (3) $,199,551 $,199,551 $,133,313 $,106,642 $68,379 Net income allocable to common stockholders (1) 4,864 4,864 3,439 10,123 3,814 Amortization of core deposit intangible 218 218 87 275 192 Less: tax effect of amortization of core deposit intangible (2) -76 -76 -30 -96 -65 Adjusted net income allocable to common stockholders $5,006 $5,006 $3,496 $10,302 $3,941 Return on average tangible common equity (ROATCE) 0.10173895951967722 0.10173895951967722 0.10547234826937482 9.6603589580090396E-2 5.7634653914213428E-2 Non-interest expense $15,226 $15,226 $9,689 $38,575 $22,900 Less: merger expenses 926 926 0 1,691 1,519 Less: loss on debt extinguishment 0 0 58 316 0 Non-interest expense, excluding merger expenses and loss on debt extinguishment $14,300 $14,300 $9,631 $36,568 $21,381 Net interest income $19,893 $19,893 $12,758 $46,262 $25,570 Non-interest income $3,339 $3,339 $2,697 $9,802 $4,826 Less: net gains on sales and settlement of securities 13 13 420 756 3 Less: net gain on acquisition 0 0 0 682 0 Non-interest income, excluding net gains on sales and settlement of securities and net gain on acquisition $3,326 $3,326 $2,277 $8,364 $4,823 Efficiency ratio 0.61587493001421245 0.61587493001421245 0.64057199866977055 0.6694248160216747 0.70348435495015305 ____________________ (1) Share and per share data includes Class A and Class B common stock issued and outstanding (2) Tax rates used in this calculation were 35% for 2015 and 2014 and 34% for 2013, 2012, and 2011 (3) All periods disclosed were calculated using a simple average of tangible common equity
ROATCE and Efficiency Ratio Non-GAAP Financial Measures (Unaudited) Years Ended December 31, (Dollars in thousands, except per share data) Mar. 2018 2017 2016 2015 Total stockholders’ equity $,381,487 $,374,144 $,257,964 $,167,232 Less: preferred stock 0 0 0 16,372 Less: goodwill ,103,412 ,104,907 58,874 18,130 Less: core deposit intangibles, net 10,355 10,738 4,715 1,549 Less: mortgage servicing asset, net 16 17 23 29 Less: naming rights, net 1,249 1,260 0 0 Tangible common equity $,266,455 $,257,222 $,194,352 $,131,152 Common shares outstanding at period end (1) 14,621,258 14,605,607 11,680,308 8,211,727 Book value per common share $26.091256990335577 $25.61646359511111 $22.085376515756259 $18.371287793663868 Tangible book value per common share $18.223808101874681 $17.611181787925695 $16.639287251671785 $15.971305426982656 Total assets $3,176,062 $3,170,509 $2,192,192 $1,585,727 Less: goodwill ,103,412 ,104,907 58,874 18,130 Less: core deposit intangibles, net 10,355 10,738 4,715 1,549 Less: mortgage servicing asset, net 16 17 23 29 Less: naming rights, net 1,249 1,260 0 0 Tangible assets $3,061,030 $3,053,587 $2,128,580 $1,566,019 Tangible common equity to tangible assets 8.7047497084314751E-2 8.4236014890029326E-2 9.1305941049901806E-2 8.3748664607517537E-2 (1) Share and per share data includes Class A and Class B common stock issued and outsanding (2) Tax rates used in this calculation were 35% (3) All periods disclosed, except 2018, 2017 and 2016, were calculated using a simple average of tangible common equity Non-GAAP Financial Measures, continued (Unaudited) As of and for the years ended (Dollars in thousands, except per share data) December 31, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31,2015 Total average stockholders' equity $,463,445 $,420,453 $,293,798 $,168,822 $,125,808 Less: average intangible assets and preferred stock ,158,410 ,139,131 76,320 25,883 19,165 Average tangible common equity (2) $,305,035 $,281,322 $,217,478 $,142,939 $,106,643 Net income allocable to common stockholders $25,579 $35,825 $20,649 $9,373 $10,123 Amortization of intangibles 3,218 2,492 1,070 419 275 Less: tax effect of amortization of intangibles (1) 676 523 375 147 96 Adjusted net income allocable to common stockholders $28,121 $37,794 $21,344 $9,645 $10,302 Return on average tangible common equity (ROATCE) (3) 9.2189420886127818E-2 0.13434427453238637 9.8143260467725466E-2 6.7476336059437939E-2 9.6602683720450472E-2 Non-interest expense $99,635 $94,387 $67,463 $47,075 $38,575 Less: merger expenses 915 7,462 5,352 5,294 1,691 Less: loss on debt extinguishment 0 0 0 58 316 Non-interest expense, excluding merger expenses and loss on debt extinguishment $98,720 $86,925 $62,111 $41,723 $36,568 Net interest income $,125,858 $,124,798 $86,002 $52,597 $46,262 Non-interest income $24,988 $19,725 $15,440 $10,466 $9,802 Less: net gains (losses) from securities transactions 14 -9 271 479 756 Less: net gain on acquisition 0 0 0 0 682 Non-interest income, excluding net gains (losses) from securities transactions and net gain on acquisition $24,974 $19,734 $15,169 $9,987 $8,364 Efficiency ratio 0.65450302323114462 0.60142390612459529 0.61392098526257521 0.66667199284162082 0.6694248160216747 ____________________ (1) Tax rates used in this calculation were 21% for 2019 and 2018. Tax rates used were 35% for previous years. (2) 2015 was calculated using a simple average of tangible common equity. (3) Annualized
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