Exhibit 99.1
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
Equity Bancshares, Inc. Reports First Quarter Results, Continued Organic Growth
Company’s expanding banking franchise earns net income of $15.7 million, sustains momentum following fourth quarter acquisitions
WICHITA, Kansas, April 19, 2022 (GLOBE NEWSWIRE) – Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “the Company”, “we”, “us”, “our”), the Wichita-based holding company of Equity Bank, reported net income of $15.7 million and $0.93 earnings per diluted share for the quarter ended March 31, 2022.
“I’m pleased with the entrepreneurial spirit of our bankers, including our market leaders, bank leaders and our support and operations teams for their collaboration and their continued focus on our customers,” said Brad Elliott, Chairman and CEO. “We began 2022 as a franchise of nearly 70 bank locations in our four-state network and we’ve continued to sustain momentum in our first quarter with customers by being responsive and open, and providing additional products and services to our new communities.”
“Our first quarter reflects our approach as a brand, providing sophisticated and innovative solutions delivered with trusted expertise of bankers dedicated to local communities,” said Mr. Elliott. “As we continue to review opportunities to expand our brand via merger, our service and sales teams continue to boost organic growth, by delivering new solutions each and every day to our customers.”
Notable Items:
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• |
During the first quarter, the Company realized period over period growth in loans held for investment of 14.53% excluding the impact of PPP assets, effectively deploying excess cash balances from the end of the year into higher yielding asset classes. |
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• |
The Company realized economic benefit of $5.7 million from the American State Bancshares and Almena State Bank acquisitions during the quarter as specific credits saw improvement resulting in release of specific reserves generated against these assets. In addition to the release of specific reserves, the Company also reversed repurchase obligations associated with certain of these assets further benefiting income by $500 thousand. |
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|
• |
The Company continued to successfully manage our problem asset portfolio to positive outcomes for the Company and its shareholders. As compared to December 31, 2021, all non-performing ratios have improved in excess of 30%, while classified assets to regulatory capital has fallen to 17.1%, its lowest level since December 31, 2015. |
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• |
The Company continued to position itself in the event of the realization of losses following economic turmoil domestically due in part to inflation and monetary policy as well as geopolitical concerns arising from Russia’s actions in Ukraine. |
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• |
The Company continued to emphasize investor returns through repurchase of 384,383 shares during the quarter, at an average price of $32.21, as well as the continuation of our quarterly dividend program at $0.08 per share. Under the currently active repurchase program, the Company is authorized to purchase an additional 482,744 shares. |
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
Financial Results for the Quarter Ended March 31, 2022
Net income allocable to common stockholders was $15.7 million, or $0.93 per diluted share, for the three months ended March 31, 2022, as compared to $10.5 million, or $0.61 per diluted share, for the three months ended December 31, 2021, an increase of $5.2 million. The increase for the first quarter of 2022 is primarily due to increases in loan and investment security interest income of $1.4 million and $545 thousand, respectively, and decreases in non-interest expenses of $8.6 million.
Net Interest Income
Net interest income was $39.3 million for the three months ended March 31, 2022, as compared to $37.2 million for the three months ended December 31, 2021, an increase of $2.1 million, or 5.6%. The increase was mainly due to increasing yields on interest-earning assets with relatively unchanged yields on interest-bearing liabilities. Loans were responsible for the majority of the increase in interest income, with a $14.5 million increase in average balance and a 25 basis point increase in yield. The cost of time deposits fell by 9 basis points during the quarter, moving from 0.56% at December 31, 2021 to 0.47% at March 31, 2022. Total yield on interest-earning assets increased 24 basis points, while total cost of interest-bearing liabilities decreased 2 basis points.
Provision for Credit Losses
During the three months ended March 31, 2022, there was a net release of $412 thousand from the allowance for credit losses recognized through the provision for credit losses as compared to a net release of $2.1 million from the allowance for credit losses for the three months ended December 31, 2021. The net release of allowance for credit losses was mainly driven by decreases in specific reserves on purchased credit deteriorated loans due to improvement in credit quality during the quarter. Offsetting the reduction in allowance for loans specifically analyzed for impairment was an increase in general reserves driven by increasing loan balances as well as perceived risk associated with near term economic turmoil including significant inflation, supply chain concerns which are potentially exacerbated by geopolitical issues, and uncertainty around the impact of monetary policy on consumers and businesses. For the three months ended March 31, 2022, we had net charge-offs of $362 thousand as compared to $7.9 million for the three months ended December 31, 2021.
Non-Interest Income
Total non-interest income was $9.0 million for the three months ended March 31, 2022, as compared to $9.2 million for the three months ended December 31, 2021, or a decrease of 1.9%, quarter over quarter. The decrease was due to decreased income from the valuation of bank-owned life insurance of $195 thousand, insurance commissions and fees of $157 thousand, and mortgage banking revenue of $160 thousand, partially offset by an increase in fee income and other of $152 thousand and an increase of $104 thousand of income related to derivative transactions in the quarter ending March 31, 2022.
Non-Interest Expense
Total non-interest expense for the quarter ended March 31, 2022, was $29.5 million as compared to $38.1 million for the quarter ended December 31, 2021. The $8.6 million change was primarily due to decreases in merger expenses of $4.2 million and other non-interest expense of $3.0 million. The comparative change in other non-interest expense was primarily driven by a release of reserve for unfunded commitments of $1.0 million and a reduction in the cost of our solar investments of an additional $900 thousand.
Asset Quality
As of March 31, 2022, Equity’s allowance for credit losses to total loans had remained constant at 1.5%, as compared to December 31, 2021. Nonperforming assets were $37.5 million as of March 31, 2022, or 0.7% of total assets, compared to $66.0 million at December 31, 2021, or 1.3% of total assets. Non-accrual loans were $20.7 million at March 31, 2022, as
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
compared to $29.4 million at December 31, 2021. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $94.2 million, or 17.1% of regulatory capital, down from $138.5 million, or 25.3% of regulatory capital as of December 31, 2021.
During the quarter ended March 31, 2022, non-performing assets decreased $28.5 million due to decreases in non-accrual loans of $8.7 million and other repossessed assets of $20.0 million. The decrease in non-accrual loans was largely due to $8.2 million in loans upgraded to accrual status during the quarter due to repayment performance and improvements in specific credit concerns. The change in other repossessed assets was primarily due to the sale of a group of assets that were moved to other repossessed assets in the fourth quarter of 2021.
Regulatory Capital
The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 11.8%, the total capital to risk-weighted assets was 15.7% and the total leverage ratio was 9.1% at March 31, 2022. At December 31, 2021, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.0%, the total capital to risk-weighted assets ratio was 16.0% and the total leverage ratio was 9.1%.
The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 13.7%, a ratio of total capital to risk-weighted assets of 14.9% and a total leverage ratio of 10.0% at March 31, 2022. At December 31, 2021, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 14.0%, the ratio of total capital to risk-weighted assets was 15.3% and the total leverage ratio was 10.1%.
Non-GAAP Financial Measures
In addition to evaluating the Company’s results of operations in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial condition and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.
The efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. In other words, for every dollar of total revenue recognized, how much of that dollar is expended. To improve the comparability of the ratio to our peers, non-core items are excluded. To improve transparency and acknowledging that banks are not consistent in their definition of the efficiency ratio, we include our calculation of this non-GAAP measure.
Return on average assets before income tax provision and provision for loan losses is a measure that the Company uses to understand fundamental operating performance before these expenses. Used as a ratio relative to average assets, we believe it demonstrates “core” performance and can be viewed as an alternative measure of how efficiently the Company services its asset base. Used as a ratio relative to average equity, it can function as an alternative measure of the Company’s earnings performance in relationship to its equity.
Tangible common equity and related measures are non-GAAP financial measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These financial measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently the Company is deploying its common equity. Companies that are able to demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors.
The Company believes that disclosing these non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently. A reconciliation of GAAP financial
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
measures to non-GAAP measures and other performance ratios, as adjusted, are included in Table 6 in the following press release tables.
Conference Call and Webcast
Equity Chairman and Chief Executive Officer, Brad Elliott, and Executive Vice President and Chief Financial Officer, Eric Newell, will hold a conference call and webcast to discuss the 2022 first quarter results on Wednesday, April 20, 2022, at 10:00 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 Wednesday, April 20, 2022, 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. 1392188.
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 April 27, 2022, accessible at (855) 859-2056 with conference ID no. 1392188 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.
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 COVID-19 related impacts; 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 9, 2022, 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
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
may differ materially from 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, such as COVID-19, 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.
(913) 583-8004
[email protected]
Unaudited Financial Tables
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Table 1. Quarterly Consolidated Statements of Income |
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Table 2. Consolidated Balance Sheets |
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Table 3. Selected Financial Highlights |
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Table 4. Quarter-To-Date Net Interest Income Analysis |
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Table 5. Quarter-Over-Quarter Net Interest Income Analysis |
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Table 6. Non-GAAP Financial Measures |
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
TABLE 1. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
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As of and for the three months ended |
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|
|
March 31,
2022 |
|
|
December 31,
2021 |
|
|
September 30,
2021 |
|
|
June 30,
2021 |
|
|
March 31,
2021 |
|
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
36,306 |
|
|
$ |
34,942 |
|
|
$ |
37,581 |
|
|
$ |
33,810 |
|
|
$ |
31,001 |
|
|
Securities, taxable |
|
|
5,391 |
|
|
|
4,754 |
|
|
|
3,920 |
|
|
|
3,523 |
|
|
|
3,799 |
|
|
Securities, nontaxable |
|
|
655 |
|
|
|
747 |
|
|
|
655 |
|
|
|
717 |
|
|
|
724 |
|
|
Federal funds sold and other |
|
|
300 |
|
|
|
349 |
|
|
|
290 |
|
|
|
268 |
|
|
|
288 |
|
|
Total interest and dividend income |
|
|
42,652 |
|
|
|
40,792 |
|
|
|
42,446 |
|
|
|
38,318 |
|
|
|
35,812 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,722 |
|
|
|
1,939 |
|
|
|
1,881 |
|
|
|
2,025 |
|
|
|
2,410 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
33 |
|
|
|
32 |
|
|
|
24 |
|
|
|
26 |
|
|
|
22 |
|
|
Federal Home Loan Bank advances |
|
|
9 |
|
|
|
14 |
|
|
|
10 |
|
|
|
80 |
|
|
|
65 |
|
|
Subordinated debt |
|
|
1,599 |
|
|
|
1,592 |
|
|
|
1,556 |
|
|
|
1,557 |
|
|
|
1,556 |
|
|
Total interest expense |
|
|
3,363 |
|
|
|
3,577 |
|
|
|
3,471 |
|
|
|
3,688 |
|
|
|
4,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
39,289 |
|
|
|
37,215 |
|
|
|
38,975 |
|
|
|
34,630 |
|
|
|
31,759 |
|
|
Provision (reversal) for credit losses |
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
|
|
(1,657 |
) |
|
|
(5,756 |
) |
|
Net interest income after provision (reversal) for credit losses |
|
|
39,701 |
|
|
|
39,340 |
|
|
|
37,917 |
|
|
|
36,287 |
|
|
|
37,515 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,522 |
|
|
|
2,471 |
|
|
|
2,360 |
|
|
|
2,169 |
|
|
|
1,596 |
|
|
Debit card income |
|
|
2,628 |
|
|
|
2,633 |
|
|
|
2,574 |
|
|
|
2,679 |
|
|
|
2,350 |
|
|
Mortgage banking |
|
|
562 |
|
|
|
722 |
|
|
|
801 |
|
|
|
848 |
|
|
|
935 |
|
|
Increase in value of bank-owned life insurance |
|
|
865 |
|
|
|
1,060 |
|
|
|
1,169 |
|
|
|
676 |
|
|
|
601 |
|
|
Net gain on acquisition |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
663 |
|
|
|
(78 |
) |
|
Net gains (losses) from securities transactions |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
|
|
— |
|
|
|
17 |
|
|
Other |
|
|
2,405 |
|
|
|
2,305 |
|
|
|
546 |
|
|
|
2,065 |
|
|
|
1,291 |
|
|
Total non-interest income |
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
|
|
9,100 |
|
|
|
6,712 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
15,068 |
|
|
|
15,119 |
|
|
|
13,588 |
|
|
|
12,769 |
|
|
|
12,722 |
|
|
Net occupancy and equipment |
|
|
3,170 |
|
|
|
2,967 |
|
|
|
2,475 |
|
|
|
2,327 |
|
|
|
2,368 |
|
|
Data processing |
|
|
3,769 |
|
|
|
3,867 |
|
|
|
3,257 |
|
|
|
3,474 |
|
|
|
2,663 |
|
|
Professional fees |
|
|
1,171 |
|
|
|
1,565 |
|
|
|
1,076 |
|
|
|
999 |
|
|
|
1,073 |
|
|
Advertising and business development |
|
|
976 |
|
|
|
1,129 |
|
|
|
760 |
|
|
|
799 |
|
|
|
682 |
|
|
Telecommunications |
|
|
470 |
|
|
|
435 |
|
|
|
439 |
|
|
|
512 |
|
|
|
580 |
|
|
FDIC insurance |
|
|
180 |
|
|
|
360 |
|
|
|
465 |
|
|
|
425 |
|
|
|
415 |
|
|
Courier and postage |
|
|
423 |
|
|
|
389 |
|
|
|
344 |
|
|
|
327 |
|
|
|
369 |
|
|
Free nationwide ATM cost |
|
|
501 |
|
|
|
515 |
|
|
|
519 |
|
|
|
513 |
|
|
|
472 |
|
|
Amortization of core deposit intangibles |
|
|
1,050 |
|
|
|
1,080 |
|
|
|
1,030 |
|
|
|
1,030 |
|
|
|
1,034 |
|
|
Loan expense |
|
|
185 |
|
|
|
308 |
|
|
|
207 |
|
|
|
181 |
|
|
|
238 |
|
|
Other real estate owned |
|
|
(1 |
) |
|
|
617 |
|
|
|
(342 |
) |
|
|
(468 |
) |
|
|
5 |
|
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
Merger expenses |
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
|
|
460 |
|
|
|
152 |
|
|
Other |
|
|
2,174 |
|
|
|
5,176 |
|
|
|
2,484 |
|
|
|
2,458 |
|
|
|
2,108 |
|
|
Total non-interest expense |
|
|
29,459 |
|
|
|
38,089 |
|
|
|
30,689 |
|
|
|
25,806 |
|
|
|
24,881 |
|
|
Income (loss) before income tax |
|
|
19,264 |
|
|
|
10,450 |
|
|
|
15,059 |
|
|
|
19,581 |
|
|
|
19,346 |
|
|
Provision for income taxes (benefit) |
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
|
|
4,415 |
|
|
|
4,271 |
|
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
$ |
15,075 |
|
|
Basic earnings (loss) per share |
|
$ |
0.94 |
|
|
$ |
0.62 |
|
|
$ |
0.82 |
|
|
$ |
1.06 |
|
|
$ |
1.04 |
|
|
Diluted earnings (loss) per share |
|
$ |
0.93 |
|
|
$ |
0.61 |
|
|
$ |
0.80 |
|
|
$ |
1.03 |
|
|
$ |
1.02 |
|
|
Weighted average common shares |
|
|
16,652,556 |
|
|
|
16,865,167 |
|
|
|
14,384,302 |
|
|
|
14,356,958 |
|
|
|
14,464,291 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
|
Weighted average diluted common shares |
|
|
16,869,152 |
|
|
|
17,141,174 |
|
|
|
14,669,312 |
|
|
|
14,674,838 |
|
|
|
14,734,083 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
TABLE 2. CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
|
|
|
March 31,
2022 |
|
|
December 31,
2021 |
|
|
September 30,
2021 |
|
|
June 30,
2021 |
|
|
March 31,
2021 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
89,764 |
|
|
$ |
259,131 |
|
|
$ |
141,645 |
|
|
$ |
138,869 |
|
|
$ |
136,190 |
|
|
Federal funds sold |
|
|
286 |
|
|
|
823 |
|
|
|
673 |
|
|
|
452 |
|
|
|
498 |
|
|
Cash and cash equivalents |
|
|
90,050 |
|
|
|
259,954 |
|
|
|
142,318 |
|
|
|
139,321 |
|
|
|
136,688 |
|
|
Interest-bearing time deposits in other banks |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
249 |
|
|
Available-for-sale securities |
|
|
1,352,894 |
|
|
|
1,327,442 |
|
|
|
1,157,423 |
|
|
|
1,041,613 |
|
|
|
998,100 |
|
|
Loans held for sale |
|
|
1,575 |
|
|
|
4,214 |
|
|
|
4,108 |
|
|
|
6,183 |
|
|
|
8,609 |
|
|
Loans, net of allowance for credit losses(1) |
|
|
3,194,987 |
|
|
|
3,107,262 |
|
|
|
2,633,148 |
|
|
|
2,763,227 |
|
|
|
2,740,215 |
|
|
Other real estate owned, net |
|
|
9,897 |
|
|
|
9,523 |
|
|
|
10,267 |
|
|
|
10,861 |
|
|
|
10,559 |
|
|
Premises and equipment, net |
|
|
103,168 |
|
|
|
104,038 |
|
|
|
90,727 |
|
|
|
90,876 |
|
|
|
90,322 |
|
|
Bank-owned life insurance |
|
|
120,928 |
|
|
|
120,787 |
|
|
|
103,431 |
|
|
|
103,321 |
|
|
|
102,645 |
|
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
|
19,890 |
|
|
|
17,510 |
|
|
|
14,540 |
|
|
|
18,454 |
|
|
|
15,174 |
|
|
Interest receivable |
|
|
16,923 |
|
|
|
18,048 |
|
|
|
15,519 |
|
|
|
15,064 |
|
|
|
16,655 |
|
|
Goodwill |
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Core deposit intangibles, net |
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
|
|
15,023 |
|
|
Other |
|
|
100,016 |
|
|
|
99,509 |
|
|
|
47,223 |
|
|
|
33,702 |
|
|
|
30,344 |
|
|
Total assets |
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
$ |
4,196,184 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
1,255,793 |
|
|
$ |
1,244,117 |
|
|
$ |
984,436 |
|
|
$ |
992,565 |
|
|
$ |
972,364 |
|
|
Total non-interest-bearing deposits |
|
|
1,255,793 |
|
|
|
1,244,117 |
|
|
|
984,436 |
|
|
|
992,565 |
|
|
|
972,364 |
|
|
Savings, NOW and money market |
|
|
2,511,478 |
|
|
|
2,522,289 |
|
|
|
2,092,849 |
|
|
|
2,035,496 |
|
|
|
2,074,261 |
|
|
Time |
|
|
612,399 |
|
|
|
653,598 |
|
|
|
585,492 |
|
|
|
659,494 |
|
|
|
587,905 |
|
|
Total interest-bearing deposits |
|
|
3,123,877 |
|
|
|
3,175,887 |
|
|
|
2,678,341 |
|
|
|
2,694,990 |
|
|
|
2,662,166 |
|
|
Total deposits |
|
|
4,379,670 |
|
|
|
4,420,004 |
|
|
|
3,662,777 |
|
|
|
3,687,555 |
|
|
|
3,634,530 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
48,199 |
|
|
|
56,006 |
|
|
|
39,137 |
|
|
|
47,184 |
|
|
|
40,339 |
|
|
Federal Home Loan Bank advances |
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
|
|
9,208 |
|
|
|
9,926 |
|
|
Subordinated debt |
|
|
96,010 |
|
|
|
95,885 |
|
|
|
88,030 |
|
|
|
87,908 |
|
|
|
87,788 |
|
|
Contractual obligations |
|
|
17,307 |
|
|
|
17,692 |
|
|
|
18,771 |
|
|
|
4,469 |
|
|
|
4,856 |
|
|
Interest payable and other liabilities |
|
|
35,422 |
|
|
|
47,413 |
|
|
|
36,804 |
|
|
|
18,897 |
|
|
|
20,930 |
|
|
Total liabilities |
|
|
4,626,608 |
|
|
|
4,637,000 |
|
|
|
3,845,519 |
|
|
|
3,855,221 |
|
|
|
3,798,369 |
|
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
204 |
|
|
|
203 |
|
|
|
178 |
|
|
|
176 |
|
|
|
175 |
|
|
Additional paid-in capital |
|
|
480,106 |
|
|
|
478,862 |
|
|
|
392,321 |
|
|
|
389,394 |
|
|
|
387,939 |
|
|
Retained earnings |
|
|
102,632 |
|
|
|
88,324 |
|
|
|
79,226 |
|
|
|
68,625 |
|
|
|
53,459 |
|
|
Accumulated other comprehensive income, net of tax |
|
|
(50,012 |
) |
|
|
1,776 |
|
|
|
9,475 |
|
|
|
13,450 |
|
|
|
12,019 |
|
|
Treasury stock |
|
|
(80,915 |
) |
|
|
(68,534 |
) |
|
|
(63,451 |
) |
|
|
(58,650 |
) |
|
|
(55,777 |
) |
|
Total stockholders’ equity |
|
|
452,015 |
|
|
|
500,631 |
|
|
|
417,749 |
|
|
|
412,995 |
|
|
|
397,815 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
$ |
4,196,184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Allowance for credit losses |
|
$ |
47,590 |
|
|
$ |
48,365 |
|
|
$ |
52,763 |
|
|
$ |
51,834 |
|
|
$ |
55,525 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
TABLE 3. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
As of and for the three months ended |
|
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
Loans Held For Investment by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,552,134 |
|
|
$ |
1,486,148 |
|
|
$ |
1,308,707 |
|
|
$ |
1,261,214 |
|
|
$ |
1,218,537 |
|
|
Commercial and industrial |
|
|
629,181 |
|
|
|
567,497 |
|
|
|
569,513 |
|
|
|
732,126 |
|
|
|
820,736 |
|
|
Residential real estate |
|
|
613,928 |
|
|
|
638,087 |
|
|
|
490,633 |
|
|
|
503,110 |
|
|
|
438,503 |
|
|
Agricultural real estate |
|
|
198,844 |
|
|
|
198,330 |
|
|
|
138,793 |
|
|
|
129,020 |
|
|
|
134,944 |
|
|
Agricultural |
|
|
150,077 |
|
|
|
166,975 |
|
|
|
93,767 |
|
|
|
97,912 |
|
|
|
93,764 |
|
|
Consumer |
|
|
98,413 |
|
|
|
98,590 |
|
|
|
84,498 |
|
|
|
91,679 |
|
|
|
89,256 |
|
|
Total loans held-for-investment |
|
|
3,242,577 |
|
|
|
3,155,627 |
|
|
|
2,685,911 |
|
|
|
2,815,061 |
|
|
|
2,795,740 |
|
|
Allowance for credit losses |
|
|
(47,590 |
) |
|
|
(48,365 |
) |
|
|
(52,763 |
) |
|
|
(51,834 |
) |
|
|
(55,525 |
) |
|
Net loans held for investment |
|
$ |
3,194,987 |
|
|
$ |
3,107,262 |
|
|
$ |
2,633,148 |
|
|
$ |
2,763,227 |
|
|
$ |
2,740,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total loans |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.96 |
% |
|
|
1.84 |
% |
|
|
1.99 |
% |
|
Past due or nonaccrual loans to total loans |
|
|
0.82 |
% |
|
|
1.18 |
% |
|
|
2.78 |
% |
|
|
2.09 |
% |
|
|
2.30 |
% |
|
Nonperforming assets to total assets |
|
|
0.74 |
% |
|
|
1.28 |
% |
|
|
1.74 |
% |
|
|
1.56 |
% |
|
|
1.67 |
% |
|
Nonperforming assets to total loans plus other
real estate owned |
|
|
1.15 |
% |
|
|
2.07 |
% |
|
|
2.76 |
% |
|
|
2.36 |
% |
|
|
2.50 |
% |
|
Classified assets to bank total regulatory capital |
|
|
17.12 |
% |
|
|
25.34 |
% |
|
|
24.25 |
% |
|
|
23.20 |
% |
|
|
26.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balance Sheet Data (QTD Average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
1,397,421 |
|
|
$ |
1,330,267 |
|
|
$ |
1,061,178 |
|
|
$ |
986,986 |
|
|
$ |
947,453 |
|
|
Total gross loans receivable |
|
|
3,195,787 |
|
|
|
3,181,279 |
|
|
|
2,748,202 |
|
|
|
2,853,145 |
|
|
|
2,736,918 |
|
|
Interest-earning assets |
|
|
4,715,389 |
|
|
|
4,713,817 |
|
|
|
4,005,509 |
|
|
|
3,964,633 |
|
|
|
3,891,140 |
|
|
Total assets |
|
|
5,108,120 |
|
|
|
5,068,278 |
|
|
|
4,275,298 |
|
|
|
4,231,439 |
|
|
|
4,143,752 |
|
|
Interest-bearing deposits |
|
|
3,163,777 |
|
|
|
3,101,657 |
|
|
|
2,702,040 |
|
|
|
2,656,052 |
|
|
|
2,690,159 |
|
|
Borrowings |
|
|
160,094 |
|
|
|
165,941 |
|
|
|
132,581 |
|
|
|
171,658 |
|
|
|
139,360 |
|
|
Total interest-bearing liabilities |
|
|
3,323,871 |
|
|
|
3,267,598 |
|
|
|
2,834,621 |
|
|
|
2,827,710 |
|
|
|
2,829,519 |
|
|
Total deposits |
|
|
4,393,879 |
|
|
|
4,342,732 |
|
|
|
3,686,169 |
|
|
|
3,624,950 |
|
|
|
3,577,625 |
|
|
Total liabilities |
|
|
4,615,521 |
|
|
|
4,505,232 |
|
|
|
3,852,419 |
|
|
|
3,827,400 |
|
|
|
3,748,114 |
|
|
Total stockholders' equity |
|
|
492,599 |
|
|
|
563,046 |
|
|
|
422,879 |
|
|
|
404,039 |
|
|
|
395,638 |
|
|
Tangible common equity* |
|
|
422,418 |
|
|
|
501,860 |
|
|
|
376,544 |
|
|
|
356,705 |
|
|
|
347,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) annualized |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
|
1.48 |
% |
|
Return on average assets before income tax and
provision for loan losses* |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
|
1.33 |
% |
|
Return on average equity (ROAE) annualized |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
|
|
15.06 |
% |
|
|
15.45 |
% |
|
Return on average equity before income tax and
provision for loan losses* |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
|
|
17.79 |
% |
|
|
13.93 |
% |
|
Return on average tangible common equity
(ROATCE) annualized* |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
18.57 |
% |
|
Yield on loans annualized |
|
|
4.61 |
% |
|
|
4.36 |
% |
|
|
5.43 |
% |
|
|
4.75 |
% |
|
|
4.59 |
% |
|
Cost of interest-bearing deposits annualized |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.28 |
% |
|
|
0.31 |
% |
|
|
0.36 |
% |
|
Cost of total deposits annualized |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
0.27 |
% |
|
Net interest margin annualized |
|
|
3.38 |
% |
|
|
3.13 |
% |
|
|
3.86 |
% |
|
|
3.50 |
% |
|
|
3.31 |
% |
|
Efficiency ratio* |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
|
|
58.85 |
% |
|
|
64.18 |
% |
|
Non-interest income / average assets |
|
|
0.72 |
% |
|
|
0.72 |
% |
|
|
0.73 |
% |
|
|
0.86 |
% |
|
|
0.66 |
% |
|
Non-interest expense / average assets |
|
|
2.34 |
% |
|
|
2.98 |
% |
|
|
2.85 |
% |
|
|
2.45 |
% |
|
|
2.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
|
9.07 |
% |
|
|
9.09 |
% |
|
|
9.02 |
% |
|
|
8.88 |
% |
|
|
8.73 |
% |
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
|
Common Equity Tier 1 Capital Ratio |
|
|
11.81 |
% |
|
|
12.03 |
% |
|
|
12.39 |
% |
|
|
12.41 |
% |
|
|
12.53 |
% |
|
Tier 1 Risk Based Capital Ratio |
|
|
12.43 |
% |
|
|
12.67 |
% |
|
|
12.90 |
% |
|
|
12.93 |
% |
|
|
13.08 |
% |
|
Total Risk Based Capital Ratio |
|
|
15.66 |
% |
|
|
15.96 |
% |
|
|
16.63 |
% |
|
|
16.74 |
% |
|
|
17.02 |
% |
|
Total stockholders' equity to total assets |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
|
|
9.68 |
% |
|
|
9.48 |
% |
|
Tangible common equity to tangible assets* |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
|
|
8.68 |
% |
|
|
8.44 |
% |
|
Dividend payout ratio |
|
|
8.60 |
% |
|
|
13.05 |
% |
|
|
9.96 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
Book value per common share |
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
|
$ |
28.76 |
|
|
$ |
27.66 |
|
|
Tangible book value per common share* |
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
|
$ |
25.51 |
|
|
$ |
24.34 |
|
|
Tangible book value per diluted common share* |
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
|
$ |
24.98 |
|
|
$ |
23.87 |
|
* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures, see Table 8. Non-GAAP Financial Measures
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
TABLE 4. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the three months ended |
|
|
For the three months ended |
|
|
|
March 31, 2022 |
|
|
March 31, 2021 |
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
575,563 |
|
|
$ |
7,761 |
|
|
|
5.47 |
% |
|
$ |
803,012 |
|
|
$ |
9,234 |
|
|
|
4.66 |
% |
|
Commercial real estate |
|
1,190,128 |
|
|
|
13,451 |
|
|
|
4.58 |
% |
|
|
971,825 |
|
|
|
11,441 |
|
|
|
4.77 |
% |
|
Real estate construction |
|
342,536 |
|
|
|
3,299 |
|
|
|
3.91 |
% |
|
|
255,677 |
|
|
|
2,178 |
|
|
|
3.45 |
% |
|
Residential real estate |
|
632,581 |
|
|
|
5,665 |
|
|
|
3.63 |
% |
|
|
394,329 |
|
|
|
4,452 |
|
|
|
4.58 |
% |
|
Agricultural real estate |
|
202,145 |
|
|
|
2,663 |
|
|
|
5.34 |
% |
|
|
140,875 |
|
|
|
1,696 |
|
|
|
4.88 |
% |
|
Agricultural |
|
149,676 |
|
|
|
2,316 |
|
|
|
6.28 |
% |
|
|
94,787 |
|
|
|
1,037 |
|
|
|
4.44 |
% |
|
Consumer |
|
103,158 |
|
|
|
1,151 |
|
|
|
4.53 |
% |
|
|
76,413 |
|
|
|
963 |
|
|
|
5.11 |
% |
|
Total loans |
|
3,195,787 |
|
|
|
36,306 |
|
|
|
4.61 |
% |
|
|
2,736,918 |
|
|
|
31,001 |
|
|
|
4.59 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,285,942 |
|
|
|
5,391 |
|
|
|
1.70 |
% |
|
|
839,349 |
|
|
|
3,799 |
|
|
|
1.84 |
% |
|
Nontaxable securities |
|
111,479 |
|
|
|
655 |
|
|
|
2.38 |
% |
|
|
108,104 |
|
|
|
724 |
|
|
|
2.72 |
% |
|
Total securities |
|
1,397,421 |
|
|
|
6,046 |
|
|
|
1.75 |
% |
|
|
947,453 |
|
|
|
4,523 |
|
|
|
1.94 |
% |
|
Federal funds sold and other |
|
122,181 |
|
|
|
300 |
|
|
|
1.00 |
% |
|
|
206,769 |
|
|
|
288 |
|
|
|
0.56 |
% |
|
Total interest-earning assets |
$ |
4,715,389 |
|
|
|
42,652 |
|
|
|
3.67 |
% |
|
$ |
3,891,140 |
|
|
|
35,812 |
|
|
|
3.73 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
2,534,102 |
|
|
|
996 |
|
|
|
0.16 |
% |
|
$ |
2,079,057 |
|
|
|
971 |
|
|
|
0.19 |
% |
|
Time deposits |
|
629,675 |
|
|
|
726 |
|
|
|
0.47 |
% |
|
|
611,102 |
|
|
|
1,439 |
|
|
|
0.96 |
% |
|
Total interest-bearing deposits |
|
3,163,777 |
|
|
|
1,722 |
|
|
|
0.22 |
% |
|
|
2,690,159 |
|
|
|
2,410 |
|
|
|
0.36 |
% |
|
FHLB advances |
|
9,943 |
|
|
|
9 |
|
|
|
0.38 |
% |
|
|
10,013 |
|
|
|
65 |
|
|
|
2.63 |
% |
|
Other borrowings |
|
150,151 |
|
|
|
1,632 |
|
|
|
4.41 |
% |
|
|
129,347 |
|
|
|
1,578 |
|
|
|
4.95 |
% |
|
Total interest-bearing liabilities |
$ |
3,323,871 |
|
|
|
3,363 |
|
|
|
0.41 |
% |
|
$ |
2,829,519 |
|
|
|
4,053 |
|
|
|
0.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,289 |
|
|
|
|
|
|
|
|
|
|
$ |
31,759 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
3.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
3.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
TABLE 5. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the three months ended |
|
|
For the three months ended |
|
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
|
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
575,563 |
|
|
$ |
7,761 |
|
|
|
5.47 |
% |
|
$ |
601,103 |
|
|
$ |
6,971 |
|
|
|
4.60 |
% |
|
Commercial real estate |
|
1,190,128 |
|
|
|
13,451 |
|
|
|
4.58 |
% |
|
|
1,187,747 |
|
|
|
13,732 |
|
|
|
4.59 |
% |
|
Real estate construction |
|
342,536 |
|
|
|
3,299 |
|
|
|
3.91 |
% |
|
|
315,774 |
|
|
|
3,062 |
|
|
|
3.85 |
% |
|
Residential real estate |
|
632,581 |
|
|
|
5,665 |
|
|
|
3.63 |
% |
|
|
618,057 |
|
|
|
5,174 |
|
|
|
3.32 |
% |
|
Agricultural real estate |
|
202,145 |
|
|
|
2,663 |
|
|
|
5.34 |
% |
|
|
206,462 |
|
|
|
2,919 |
|
|
|
5.61 |
% |
|
Agricultural |
|
149,676 |
|
|
|
2,316 |
|
|
|
6.28 |
% |
|
|
151,589 |
|
|
|
1,929 |
|
|
|
5.05 |
% |
|
Consumer |
|
103,158 |
|
|
|
1,151 |
|
|
|
4.53 |
% |
|
|
100,547 |
|
|
|
1,155 |
|
|
|
4.56 |
% |
|
Total loans |
|
3,195,787 |
|
|
|
36,306 |
|
|
|
4.61 |
% |
|
|
3,181,279 |
|
|
|
34,942 |
|
|
|
4.36 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,285,942 |
|
|
|
5,391 |
|
|
|
1.70 |
% |
|
|
1,209,826 |
|
|
|
4,754 |
|
|
|
1.56 |
% |
|
Nontaxable securities |
|
111,479 |
|
|
|
655 |
|
|
|
2.38 |
% |
|
|
120,441 |
|
|
|
747 |
|
|
|
2.46 |
% |
|
Total securities |
|
1,397,421 |
|
|
|
6,046 |
|
|
|
1.75 |
% |
|
|
1,330,267 |
|
|
|
5,501 |
|
|
|
1.64 |
% |
|
Federal funds sold and other |
|
122,181 |
|
|
|
300 |
|
|
|
1.00 |
% |
|
|
202,271 |
|
|
|
348 |
|
|
|
0.68 |
% |
|
Total interest-earning assets |
$ |
4,715,389 |
|
|
|
42,652 |
|
|
|
3.67 |
% |
|
$ |
4,713,817 |
|
|
|
40,791 |
|
|
|
3.43 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
2,534,102 |
|
|
|
996 |
|
|
|
0.16 |
% |
|
$ |
2,418,492 |
|
|
|
978 |
|
|
|
0.16 |
% |
|
Time deposits |
|
629,675 |
|
|
|
726 |
|
|
|
0.47 |
% |
|
|
683,165 |
|
|
|
962 |
|
|
|
0.56 |
% |
|
Total interest-bearing deposits |
|
3,163,777 |
|
|
|
1,722 |
|
|
|
0.22 |
% |
|
|
3,101,657 |
|
|
|
1,940 |
|
|
|
0.25 |
% |
|
FHLB advances |
|
9,943 |
|
|
|
9 |
|
|
|
0.38 |
% |
|
|
18,197 |
|
|
|
15 |
|
|
|
0.32 |
% |
|
Other borrowings |
|
150,151 |
|
|
|
1,632 |
|
|
|
4.41 |
% |
|
|
147,744 |
|
|
|
1,624 |
|
|
|
4.36 |
% |
|
Total interest-bearing liabilities |
$ |
3,323,871 |
|
|
|
3,363 |
|
|
|
0.41 |
% |
|
$ |
3,267,598 |
|
|
|
3,579 |
|
|
|
0.43 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,289 |
|
|
|
|
|
|
|
|
|
|
$ |
37,212 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
3.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
3.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
TABLE 6. NON-GAAP FINANCIAL MEASURES (Unaudited)
|
|
|
As of and for the three months ended |
|
|
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
452,015 |
|
|
$ |
500,631 |
|
|
$ |
417,749 |
|
|
$ |
412,995 |
|
|
$ |
397,815 |
|
|
Less: goodwill |
|
|
54,465 |
|
|
|
56,609 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Less: core deposit intangibles, net |
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
|
|
15,023 |
|
|
Less: mortgage servicing asset, net |
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Less: naming rights, net |
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
|
|
1,109 |
|
|
|
1,119 |
|
|
Tangible common equity |
|
$ |
382,393 |
|
|
$ |
427,780 |
|
|
$ |
372,087 |
|
|
$ |
366,292 |
|
|
$ |
350,072 |
|
|
Common shares issued at period end |
|
|
16,454,966 |
|
|
|
16,779,029 |
|
|
|
14,365,785 |
|
|
|
14,360,172 |
|
|
|
14,383,913 |
|
|
Diluted common shares outstanding at period end |
|
|
16,662,779 |
|
|
|
17,050,115 |
|
|
|
14,637,306 |
|
|
|
14,664,603 |
|
|
|
14,668,287 |
|
|
Book value per common share |
|
$ |
27.47 |
|
|
$ |
29.84 |
|
|
$ |
29.08 |
|
|
$ |
28.76 |
|
|
$ |
27.66 |
|
|
Tangible book value per common share |
|
$ |
23.24 |
|
|
$ |
25.49 |
|
|
$ |
25.90 |
|
|
$ |
25.51 |
|
|
$ |
24.34 |
|
|
Tangible book value per diluted common share |
|
$ |
22.95 |
|
|
$ |
25.09 |
|
|
$ |
25.42 |
|
|
$ |
24.98 |
|
|
$ |
23.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
5,078,623 |
|
|
$ |
5,139,775 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
$ |
4,196,184 |
|
|
Less: goodwill |
|
|
54,465 |
|
|
|
56,609 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Less: core deposit intangibles, net |
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
|
|
15,023 |
|
|
Less: mortgage servicing asset, net |
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Less: naming rights, net |
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
|
|
1,109 |
|
|
|
1,119 |
|
|
Tangible assets |
|
$ |
5,009,001 |
|
|
$ |
5,066,924 |
|
|
$ |
4,217,606 |
|
|
$ |
4,221,513 |
|
|
$ |
4,148,441 |
|
|
Total stockholders' equity to total assets |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
|
|
9.68 |
% |
|
|
9.48 |
% |
|
Tangible common equity to tangible assets |
|
|
7.63 |
% |
|
|
8.44 |
% |
|
|
8.82 |
% |
|
|
8.68 |
% |
|
|
8.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average stockholders' equity |
|
$ |
492,599 |
|
|
$ |
563,023 |
|
|
$ |
422,879 |
|
|
$ |
404,039 |
|
|
$ |
395,638 |
|
|
Less: average intangible assets |
|
|
70,181 |
|
|
|
61,209 |
|
|
|
46,335 |
|
|
|
47,334 |
|
|
|
48,376 |
|
|
Average tangible common equity |
|
$ |
422,418 |
|
|
$ |
501,814 |
|
|
$ |
376,544 |
|
|
$ |
356,705 |
|
|
$ |
347,262 |
|
|
Net income (loss) allocable to common stockholders |
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
$ |
15,075 |
|
|
Amortization of intangible assets |
|
|
1,085 |
|
|
|
1,116 |
|
|
|
1,040 |
|
|
|
1,041 |
|
|
|
1,045 |
|
|
Less: tax effect of intangible assets amortization |
|
|
228 |
|
|
|
234 |
|
|
|
218 |
|
|
|
219 |
|
|
|
219 |
|
|
Adjusted net income (loss) allocable to common
stockholders |
|
$ |
16,507 |
|
|
$ |
11,348 |
|
|
$ |
12,595 |
|
|
$ |
15,988 |
|
|
$ |
15,901 |
|
|
Return on total average stockholders' equity
(ROAE) annualized |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
|
|
15.06 |
% |
|
|
15.45 |
% |
|
Return on average tangible common equity
(ROATCE) annualized |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
18.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
29,459 |
|
|
$ |
38,089 |
|
|
$ |
30,689 |
|
|
$ |
25,806 |
|
|
$ |
24,881 |
|
|
Less: merger expense |
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
|
|
460 |
|
|
|
152 |
|
|
Non-interest epense, excluding merge expense and loss
on debt extinguishment |
|
$ |
29,136 |
|
|
$ |
33,527 |
|
|
$ |
26,674 |
|
|
$ |
25,346 |
|
|
$ |
24,729 |
|
|
Net interest income |
|
$ |
39,289 |
|
|
$ |
37,215 |
|
|
$ |
38,975 |
|
|
$ |
34,630 |
|
|
$ |
31,759 |
|
|
Non-interest income |
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
|
|
9,100 |
|
|
|
6,712 |
|
|
Less: net gain on acquisition |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
663 |
|
|
|
(78 |
) |
|
Less: net gains (losses) from securities transactions |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
|
|
— |
|
|
|
17 |
|
|
Non-interest income, excluding gains (losses) from
securities transactions |
|
$ |
8,982 |
|
|
$ |
9,191 |
|
|
$ |
7,450 |
|
|
$ |
8,437 |
|
|
$ |
6,773 |
|
|
Net interest income plus non-interest income,
excluding net gain on acquisition and net gains
(losses) from securities transactions |
|
$ |
48,271 |
|
|
$ |
46,406 |
|
|
$ |
46,425 |
|
|
$ |
43,067 |
|
|
$ |
38,532 |
|
|
Non-interest expense to
net interest income plus non-interest income |
|
|
60.98 |
% |
|
|
82.06 |
% |
|
|
65.57 |
% |
|
|
59.01 |
% |
|
|
64.67 |
% |
|
Efficiency ratio |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
57.46 |
% |
|
|
58.85 |
% |
|
|
64.18 |
% |
|
Net income (loss) allocable to common stockholders |
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
$ |
15,075 |
|
|
Add: income tax provision |
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
|
|
4,415 |
|
|
|
4,271 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 4/19/2022
|
Add: provision (reversal) of credit losses |
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
|
|
(1,657 |
) |
|
|
(5,756 |
) |
|
Adjusted net income |
|
$ |
18,852 |
|
|
$ |
8,325 |
|
|
$ |
16,117 |
|
|
$ |
17,924 |
|
|
$ |
13,590 |
|
|
Total average assets |
|
$ |
5,108,120 |
|
|
$ |
5,068,301 |
|
|
$ |
4,275,298 |
|
|
$ |
4,231,439 |
|
|
$ |
4,143,752 |
|
|
Total average stockholders' equity |
|
$ |
492,599 |
|
|
$ |
563,023 |
|
|
$ |
422,879 |
|
|
$ |
404,039 |
|
|
$ |
395,638 |
|
|
Return on average assets (ROAA) annualized |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
|
1.48 |
% |
|
Adjusted return on average assets |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
|
1.33 |
% |
|
Adjusted return on average equity |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
|
|
17.79 |
% |
|
|
13.93 |
% |
First Quarter Earnings Presentation
April 20, 2022 Exhibit 99.2
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 COVID-19 related impacts; 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 9, 2022, 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 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, such as COVID-19, 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.
NON-GAAP FINANCIAL MEASURES
This presentation contains 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 presentation. Numbers in the presentation may not sum due to rounding.
2
Our Company 3 Committed to our Entrepreneurial Spirit
Equity Bancshares, Inc.
NASDAQ: EQBK
Start-Up: 2002 - 2007
Brad Elliott, current Chairman and CEO, founded Equity Bancshares, Inc. in 2002.
Closed 5 branch or whole bank acquisitions
Opened 2 branches in Missouri
Growth: 2008 - 2016
Opened branches in Lee’s Summit & Overland Park, Kansas
Acquired Ellis State Bank
$8.8MM of TARP issued and repaid with SBLF
$20.0MM Capital Raise
Purchased 4 branches from Citizens Bancshares (Topeka)
Scale: 2017-2021
$20.4MM Capital Raise
Acquired First Community Bancshares
Rationalized branch map, 3 closures, 1 opening
Acquired First Independence and Community First
$35.4MM private placement capital raise
Acquired Prairie State, Patriot Bank, and Eastman
Acquired Kansas Bank Corporation, Adams Dairy Bank, and City Bank & Trust
Launched ETWM
Completed $75MM subordinated debt issuance
Acquired Almena State Bank, 3 branches from Security Bank, and American State Bancshares
For the quarter ended March 31, 2022.
Our Leadership Team 4 Brad Elliott
Chairman & CEO
Years at Equity: 20 | Years in Banking: 33 Eric Newell
Chief Financial Officer
Years at Equity: 2 | Years in Banking: 20 Craig Anderson
President
Years at Equity: 4 | Years in Banking: 40 Greg Kossover
Chief Operating Officer
Years at Equity: 9 | Years in Banking: 22 Founded Equity Bank in 2002
2018 EY Entrepreneur of the Year National Finalist
2014 Most Influential CEO, Wichita Business Journal
Served as Regional President of Sunflower Bank prior to forming Equity Bank
Served as Director of Sales and Marketing for Koch Industries Became COO in April 2020
Served as CFO from 2013 to 2020
EQBK Board of Directors, 2011-current
Served as president of Physicians Development Group
Served as CEO of Value Place, LLC, growing the franchise to more than 150 locations in 25 states Became President in April 2020
Served as COO from 2018 to 2020
Joined Equity Bank in March 2018
Served as President of UMBF Commercial Banking
More than 38 years of banking experience, concentrated in commercial lending roles Joined Equity Bank in April 2020
Served as CFO at United Bank in Hartford, CT ($7.3B assets)
Served as CFO and head of Treasury at Rockville Bank, Glastonbury, Conn.
Served as Analyst for AllianceBernstein and Fitch
Began career as examiner with FDIC
Our Value Proposition 5 Market Diversification and Strategy for Growth Experienced and Invested Management Team Conservative Credit Culture and Effective Risk Management and Mitigation Robust Funding Capacity, Anchored by a Diverse, Low-Cost Deposit Base Focus on Efficient Performance Throughout our Diversified Business Lines
Our Core Values embody everything we do at Equity Bank, including teamwork with colleagues, conduct within our communities, and especially our respect for our customers. Our core values are:
Integrity
Community Focus
Accountability
Respect
Entrepreneurial Spirit
Core Values & ESG Impact 6 For the year ended December 31, 2021
Our Operating Footprint 7
Proven record of M&A execution 8 Pricing Multiples
Transaction Impact
Our Opportunity 9 There are over 1000 bank offices with deposits less than $750MM in our operating market
Long Term Key Strategic Objectives 10 Grow Tangible Book
Value
Maximize Risk Adjusted
Return on Assets
Offer best-in-class banking products and services
Drive organic fee income generation
Efficiently grow core earnings
Effectively deploy capital through share repurchases, dividends and whole bank m&a while maintaining strong capital ratios
Re-mix cash flows into higher yielding instruments funded with low-cost core deposits
Achieve 15% + ROATCE & 1.5% PTPP ROA Optimize revenue composition with 30% fee income to total revenue
Explore diversification of earnings through strategic acquisitions of fee-based revenue businesses Invest in people, systems, and technology
Tailor products to meet customers needs
Deliver services through high quality, relationship-based delivery channels
Strong Core Deposit Franchise 11 Deposit Composition(1)
Fully integrated digital banking platform with an adoption rate of 60.1% among core banking customers
Continued emphasis on development of relationships to drive growth in non-interest bearing deposits. Cost of Deposits: 0.16%(1)
Core Deposits(2) / Total Deposits
Total Deposits & Loan to Deposit Ratio
For the quarter ended March 31, 2022. Includes interest and non-interest bearing deposits.
Core deposits excludes time deposits > $100K.
Dollars in millions.
Core Deposit Growth 12 Cost of Deposits(1)
0.16% 0.22% 0.52% 0.91% 1.30% Year-to-date, Includes the impact of non-interest bearing deposits
Dollars in millions
Asset Quality 13 Commentary
Net charge-offs were $362 thousand for the quarter, or 5 bps of average loan assets annualized.
Reserve ratio, exclusive of PPP assets, is 1.48% remaining well positioned for any losses which materialize from the current economic uncertainty surrounding inflation and related effect on consumer liquidity, supply chain disruption, and input cost escalation concerns.
Overall, nonaccrual loans declined $8.7 million quarter over quarter.
Nonperforming Assets
Net Charge-Offs (NCO) / Average Loans
Includes loans 90+ days past due which are not highlighted in the table.
Excludes Bank owned branch assets, totaling $1.0M, classified as Other Real Estate Owned within the Statements of Condition.
Credit Quality 14 Total Reserve Ratio
Classified Assets
Nonaccrual Detail
Diversified Loan Portfolio 15 Year-to-Date Loan Yield 4.44% 5.19% 5.73% 5.74% 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.
Composition excludes the impact of PPP loans as of each applicable date.
For the Year-to-Date periods ended December 31, 2020, December 31, 2021 and March 31, 2022, yield has been adjusted to exclude PPP loans, including these loans yield would be 5.00%, 4.77% and 4.61%, respectively. 4.54%
Allowance for Credit Loss (ACL) 16 Impact of CECL adoption and subsequent intra-quarter movement
Capital Management 17 Capital Management Strategy
Capital Targets
EQBK establishes capital targets based on the following objectives:
Maintain designation as a “well capitalized” institution under fully phased-in Basel III regulatory definitions
Ensure capital levels are commensurate with the Company’s risk profile and strategic plan
Capital Management Priorities
Support organic growth
Dividend payout ratio targeted at 10-20%
Common stock repurchases
Merger & acquisition activity
Excess Capital Deployment
EQBK’s Tangible Common Equity Ratio target is 8.5(1)%;
TCE above 8.5% is considered excess capital assuming “well capitalized” regulatory capital ratios are maintained. Deployment of capital ideally has less than a 3-year tangible book value earnback using the crossover method;
Excess capital can be deployed for:
Shares repurchases,
Higher shareholder dividends, and/or
Acquisitions
The Company’s capital ratios are comfortably above well capitalized
levels as of 3/31/2022
2022 Capital Management Actions
1. As of March 31, 2022 the tangible common equity ratio is being negatively impacted by $50.0 million in unrealized losses on the investment portfolio. Adjusting for this temporary decline in fair value, would result in a Tangible Common Equity Ratio of 8.55%.
Bank Liquidity 18 Liquidity Analysis
Portfolio Characteristics
Dividend Capacity from the Bank
Description
Amortized Cost
Unrealized Gain / (Loss)
Carrying Value
Revenue Mix 19 2022 YTD Operating Revenue(1)
Noninterest Income
18.9% 2022 YTD operating revenue is equal to $48.3M, defined as net interest income of $39.3M plus non-interest income excluding gain / (loss) on securities transaction of $9.0M. YTD operating revenue less PPP income is equal to $48.3M less $827 thousand, or $47.4M
Noninterest Income 20 Quarterly Results(1)
(1) Excludes the impact of PPP loans, net gain on acquisition, and net gain / (loss) on securities transactions Annual Results(1)
Net Interest Income 21 Quarterly Results
Annual Results
(1) Excludes the impact of PPP loans. Including these balances in the first, second, third, fourth quarter 2021 and first quarter 2022 results would be 3.31%, 3.50%, 3.86%, 3.13% and 3.38% respectively, while YTD 2020 and 2021 results would be 3.63% and 3.44%, respectively. (1) (1)
Net Interest Margin 22 Key Net Interest Margin Drivers
Government Programs
PPP fee income due to forgiveness received by borrowers decreased during the quarter. Roughly $500 thousand in deferred fee balances remain on the books at quarter end.
Non-Interest Bearing Deposits
Non-interest bearing deposits now constitute 29% of total deposits, and core deposits / total deposits continues to increase. Loan / Deposit ratio increased for the first time since prior to the pandemic
Day Count
Day count in Q1 2022 vs Q4 2021 reduced net interest income roughly $900 thousand
Rate Protection
Proactive effort to book variable rate assets subject to floor levels.
Investment Portfolio
Bond portfolio designed to be short and positioned to take advantage of rate rise opportunities.
Repositioning Earning Asset Base
The Bank will continue to pursue enhancing the loan-to-deposit ratio to more closely mirror pre-pandemic levels and re-deploying cash flow into the loan portfolio
Net Interest Income Period over Period
Adjusted First Quarter NIM
Performance Metrics 23 Commentary
Q1 2022 saw increased levels of core profitability, however further lift was seen from the decrease in AOCI
Adjusting out average AOCI yields ROATCE of > 15%
Q1 2022, growing non-interest income lines, increased loan production and release of allowance for unfunded commitments provided benefit
Return on Tangible Common Equity(1)
Efficiency Ratio(1)
Non-GAAP financial measure. Refer to the non-GAAP reconciliation at the end of this presentation.
Tangible Book Value 24 Tangible book value per share(1) decreased $2.41 in Q1 2022, driven by unrealized losses in the investment portfolio
Non-GAAP financial measure. Refer to the non-GAAP reconciliation at the end of this presentation.
Robust Growth 25 Gross Loans
7.4%
CAGR Total Deposits
11.0%
CAGR
First Quarter Highlights 26 Favorable (unfavorable) comparison to previous period. Year-over-Year is a comparison to comparable quarter end in previous year. Quarter-over-Quarter is a comparison to prior quarter end.
Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation for additional detail.
Excludes goodwill impairment, merger expenses and gain on acquisition.
Adjusted to exclude the impact of PPP loans.
Excludes gain / (loss) on sale of securities.
Adjusted Operating Performance 27 Adjusted Net Income
Adjusted Diluted Earnings Per Share
Efficiency Ratio &
Adj. Non-Interest Expense / Average Assets
Adjusted Pre-Tax, Pre-Provision
Net Revenue
Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Does not include merger expense or gain on acquisition in any period presented, as applicable. See the non-GAAP reconciliation at the end of the presentation for additional detail on these balances.
Outlook on Key Business Drivers 28 Consideration & Expectations
Continued uncertainty of inflation, supply chain disruption and input cost escalation.
Focus on continued balance sheet strength and security while continuing to pursue growth.
NOTE: Figures presented in this outlook represent forward-looking statements and are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Please see Special Note Concerning Forward-Looking Statements.
Excluding the impact of PPP loans
Excluding the impact of PPP loans, purchase accounting and the one-time impact of previously non-accrual loans shifting to accrual.
Excluding Net Gain on Securities Transactions of $40K
Excluding Merger Expenses of $323K and release of reserve for unfunded commitment of $994 thousand
Focus Variables for Outlook & Forecast 29 Our outlook requires clarity around certain variables, including:
30 Appendix
Our Markets 31 Missouri
10 counties
16 branches Kansas
21 Counties
38 branches Source: S&P Market Intelligence. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Equity
Our Markets 32 Arkansas
Benton | Boone | Carroll
5 branches Oklahoma
Kay | Texas | Tulsa | Washita
10 branches Source: S&P Market Intelligence. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Equity
Selected Income Statement Data 33
Selected Balance Sheet Data 34 Includes interest-bearing deposits in other banks.
Includes Federal Reserve Bank and Federal Home Loan Bank stock.
Includes loans held-for-sale.
Capitalization 35 (1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Maintaining a strong regulatory capital position
36 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
37 TCE to TA and Tangible Book Value per Share
38 ROATCE and Efficiency Ratio
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