UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code:
Former name or former address, if changed since last report: Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class |
Trading Symbol |
Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
1
Item 2.02Results of Operations and Financial Condition.
On July 19, 2022 Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended June 30, 2022. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 7.01Regulation FD Disclosure.
The Company intends to hold an investor call and webcast to discuss its financial results for the second quarter ended June 30, 2022 on Wednesday, July 20, 2022, at 9:00 a.m. Central Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the second quarter ended June 30, 2022 and is furnished as Exhibit 99.2 and is incorporated by reference herein.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits
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Exhibit No. |
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Description |
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99.1 |
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99.2 |
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104 |
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Cover Page Interactive Data File |
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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Equity Bancshares, Inc. |
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Date: July 19, 2022 |
By: /s/ Eric R. Newell |
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Eric R. Newell |
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Executive Vice President and Chief Financial Officer |
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Exhibit 99.1
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
Equity Bancshares, Inc. Reports Second Quarter Results, Continued Organic Growth
Company saw NIM expansion, organic growth in the loan portfolio and noninterest income, with well managed operating expenses
WICHITA, Kansas, July 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 $15.3 million and $0.94 earnings per diluted share for the quarter ended June 30, 2022.
“In 2022, we’ve demonstrated our ability to deliver organic growth absent a merger partner. Our 8.5% organic loan growth represents the hard work of our sales and operations teams to provide value to customers,” said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc. “We have a great leadership team dedicated to driving loans, treasury services, deposit products, and new products such as our recently introduced healthcare services offerings. These efforts to deliver sophisticated products and customer experience solutions have the effect of increasing earnings, improving net interest margin, increasing fee income and improving our loan to deposit ratio.”
“In the third quarter, we expect to continue to strengthen our loan to deposit ratio and to serve as a resource for our customers as they continue to navigate economic challenges for their businesses and families,” said Mr. Elliott. “Our brand reflects our entrepreneurial spirit, and as we add talent to our leadership teams, new products and services, and new service channels, we’ll continue to operate with our local customers in mind.”
Notable Items:
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During the second quarter, the Company realized continued loan growth excluding the impact of PPP assets and the branch sale, bring annualized loan growth year-to-date to 8.51%. |
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During the quarter, the Company realized linked period growth of 5.38% in service fee income, driven by additional debit card revenue and service charges on Equity Bank deposit products. |
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The Company closed on the sale of three branches to United Bank & Trust in Belleville, Clyde and Concordia, Kansas, which resulted in a net gain of $540 thousand. |
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At June 30, 2022, classified assets to regulatory capital has declined to 13.1% from 17.1% at March 31, 2022. |
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The Company continued to emphasize investor returns through repurchase of 355,844 shares during the quarter, at an average price of $31.54, 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 126,900 shares. |
Financial Results for the Quarter Ended June 30, 2022
Net income allocable to common stockholders was $15.3 million, or $0.94 per diluted share, for the three months ended June 30, 2022, as compared to $15.7 million, or $0.93 per diluted share, for the three months ended March 31, 2022. The decrease for the second quarter of 2022 is primarily due to increases in non-interest expense of $2.0 million and provision for credit losses of $1.2 million, partially offset by an increase in non-interest income of $615 thousand and net interest income of $277 thousand.
Net Interest Income
Net interest income was $39.6 million for the three months ended June 30, 2022, as compared to $39.3 million for the three months ended March 31, 2022, an increase of $277 thousand, or 0.7%. The yield on interest-earning assets increased 7-basis points to 3.74% during the quarter ended June 30, 2022, as compared to 3.67% for the quarter ended March 31, 2022. The cost of interest-bearing deposits increased by 6 basis points during the quarter, moving from 0.22% at March 31, 2022 to 0.28% at June 30, 2022.
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
Provision for Credit Losses
During the three months ended June 30, 2022, there was a provision to the allowance for credit losses of $824 thousand compared to a net release of $412 thousand in the previous quarter. The comparative increase was primarily driven by the increase in general reserves driven by slowing prepayment speeds and the perceived risk associated with the current economic environment, which includes, significant inflation, supply chain concerns and the impact of monetary policy on consumers and businesses. For the three months ended June 30, 2022, we had net charge-offs of $176 thousand as compared to $362 thousand for the three months ended March 31, 2022.
Non-Interest Income
Total non-interest income was $9.6 million for the three months ended June 30, 2022, as compared to $9.0 million for the three months ended March 31, 2022, or an increase of 6.8%, quarter over quarter. The increase was primarily due to an increase in net gain on acquisition and branch sales of $540 thousand.
Non-Interest Expense
Total non-interest expense for the quarter ended June 30, 2022, was $31.4 million as compared to $29.5 million for the quarter ended March 31, 2022. The $2.0 million change was primarily due to increases in other non-interest expense of $2.0 million driven by a provision to reserve for unfunded commitments of $288 thousand for the quarter ended June 30, 2022, compared to a release of reserve for unfunded commitments of $1.0 million for the quarter ended March 31, 2022.
Asset Quality
As of June 30, 2022, Equity’s allowance for credit losses to total loans remained constant at 1.5%, as compared to March 31, 2022. Nonperforming assets were $37.0 million as of June 30, 2022, or 0.7% of total assets, compared to $37.5 million at March 31, 2022, or 0.7% of total assets. Non-accrual loans were $18.9 million at June 30, 2022, as compared to $20.7 million at March 31, 2022. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $72.1 million, or 13.1% of regulatory capital, down from $94.2 million, or 17.1% of regulatory capital as of March 31, 2022.
During the quarter ended June 30, 2022, non-performing assets decreased $500 thousand due to decreases in non-accrual loans of $1.8 million partially offset by increases in closed bank branches classified as other real estate owned of $881 thousand and other repossessed assets of $83 thousand.
Regulatory Capital
The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.1%, the total capital to risk-weighted assets was 16.0% and the total leverage ratio was 9.1% at June 30, 2022. At March 31, 2022, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 11.8%, the total capital to risk-weighted assets ratio was 15.7% 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 13.9%, a ratio of total capital to risk-weighted assets of 15.1% and a total leverage ratio of 9.9% at June 30, 2022. At March 31, 2022, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.7%, the ratio of total capital to risk-weighted assets was 14.9% and the total leverage ratio was 10.0%.
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
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 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’s Chairman and Chief Executive Officer, Brad Elliott, and Chief Financial Officer, Eric Newell, will hold a conference call and webcast to discuss second quarter results on Wednesday, July 20, 2022 at 10 a.m. eastern time or 9 a.m. central time.
A live webcast of the call will be available on the Company’s website at investor.equitybank.com. To access the call by phone, please go to this registration link, and you will be provided with dial in details. Investors, news media, and other participants are encouraged to dial into the conference call ten minutes ahead of the scheduled start time.
A replay of the call and webcast will be available two hours following the close of the call until July 27, 2022, accessible 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.
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
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 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
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
Media Contact:
John J. Hanley
SVP, Senior Director of Marketing
Equity Bancshares, Inc.
(913) 583-8004
Unaudited Financial Tables
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Table 1. Consolidated Statements of Income |
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Table 2. Quarterly Consolidated Statements of Income |
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Table 3. Consolidated Balance Sheets |
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Table 4. Selected Financial Highlights |
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Table 5. Year-To-Date Net Interest Income Analysis |
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Table 6. Quarter-To-Date Net Interest Income Analysis |
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Table 7. Quarter-Over-Quarter Net Interest Income Analysis |
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Table 8. Non-GAAP Financial Measures |
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
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Three months ended June 30, |
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Six months ended June 30, |
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2022 |
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2021 |
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2022 |
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2021 |
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Interest and dividend income |
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Loans, including fees |
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$ |
36,849 |
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$ |
33,810 |
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$ |
73,155 |
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$ |
64,811 |
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Securities, taxable |
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5,584 |
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3,523 |
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10,975 |
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7,322 |
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Securities, nontaxable |
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678 |
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717 |
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1,333 |
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1,441 |
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Federal funds sold and other |
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513 |
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268 |
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813 |
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556 |
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Total interest and dividend income |
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43,624 |
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38,318 |
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86,276 |
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74,130 |
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Interest expense |
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Deposits |
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2,183 |
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2,025 |
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3,905 |
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4,435 |
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Federal funds purchased and retail repurchase agreements |
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46 |
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26 |
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79 |
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48 |
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Federal Home Loan Bank advances |
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176 |
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80 |
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185 |
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145 |
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Subordinated debt |
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1,653 |
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1,557 |
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3,252 |
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3,113 |
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Total interest expense |
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4,058 |
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3,688 |
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7,421 |
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7,741 |
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Net interest income |
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39,566 |
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34,630 |
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78,855 |
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66,389 |
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Provision (reversal) for credit losses |
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824 |
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(1,657 |
) |
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412 |
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(7,413 |
) |
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Net interest income after provision (reversal) for credit losses |
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38,742 |
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36,287 |
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78,443 |
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73,802 |
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Non-interest income |
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Service charges and fees |
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2,617 |
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2,169 |
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5,139 |
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3,765 |
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Debit card income |
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2,810 |
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2,679 |
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5,438 |
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5,029 |
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Mortgage banking |
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428 |
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848 |
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990 |
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1,783 |
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Increase in value of bank-owned life insurance |
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736 |
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676 |
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1,601 |
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1,277 |
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Net gain on acquisition and branch sales |
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540 |
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663 |
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540 |
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585 |
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Net gains (losses) from securities transactions |
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(32 |
) |
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— |
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8 |
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17 |
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Other |
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2,538 |
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2,065 |
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4,943 |
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3,356 |
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Total non-interest income |
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9,637 |
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9,100 |
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18,659 |
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15,812 |
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Non-interest expense |
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Salaries and employee benefits |
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15,383 |
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12,769 |
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30,451 |
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25,491 |
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Net occupancy and equipment |
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3,007 |
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|
2,327 |
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6,177 |
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|
|
4,695 |
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Data processing |
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3,642 |
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|
3,474 |
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|
7,411 |
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|
|
6,137 |
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Professional fees |
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1,111 |
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|
|
999 |
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|
|
2,282 |
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|
|
2,072 |
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Advertising and business development |
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|
972 |
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|
799 |
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1,948 |
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|
|
1,481 |
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Telecommunications |
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|
442 |
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|
|
512 |
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|
|
912 |
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|
1,092 |
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FDIC insurance |
|
|
260 |
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|
|
425 |
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|
|
440 |
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|
|
840 |
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Courier and postage |
|
|
489 |
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|
|
327 |
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|
|
912 |
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|
|
696 |
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Free nationwide ATM cost |
|
|
541 |
|
|
|
513 |
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|
|
1,042 |
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|
|
985 |
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Amortization of core deposit intangibles |
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|
1,111 |
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|
|
1,030 |
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|
|
2,161 |
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|
|
2,064 |
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Loan expense |
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|
207 |
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|
181 |
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|
|
392 |
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|
|
419 |
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Other real estate owned |
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|
14 |
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|
(468 |
) |
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|
13 |
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|
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(463 |
) |
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Merger expenses |
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|
88 |
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|
|
460 |
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|
|
411 |
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|
|
612 |
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Other |
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4,169 |
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|
2,458 |
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|
|
6,343 |
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|
|
4,566 |
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Total non-interest expense |
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31,436 |
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|
25,806 |
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|
60,895 |
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|
|
50,687 |
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Income (loss) before income tax |
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|
16,943 |
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|
|
19,581 |
|
|
|
36,207 |
|
|
|
38,927 |
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Provision for income taxes |
|
|
1,684 |
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|
|
4,415 |
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|
|
5,298 |
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|
|
8,686 |
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Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
15,259 |
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|
$ |
15,166 |
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|
$ |
30,909 |
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|
$ |
30,241 |
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Basic earnings (loss) per share |
|
$ |
0.95 |
|
|
$ |
1.06 |
|
|
$ |
1.88 |
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|
$ |
2.10 |
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Diluted earnings (loss) per share |
|
$ |
0.94 |
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|
$ |
1.03 |
|
|
$ |
1.86 |
|
|
$ |
2.06 |
|
|
Weighted average common shares |
|
|
16,106,683 |
|
|
|
14,356,958 |
|
|
|
16,428,535 |
|
|
|
14,410,328 |
|
|
Weighted average diluted common shares |
|
|
16,312,953 |
|
|
|
14,674,838 |
|
|
|
16,639,970 |
|
|
|
14,704,240 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
As of and for the three months ended |
|
|||||||||||||||||
|
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
September 30, 2021 |
|
|
June 30, 2021 |
|
|||||
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
36,849 |
|
|
$ |
36,306 |
|
|
$ |
34,942 |
|
|
$ |
37,581 |
|
|
$ |
33,810 |
|
|
Securities, taxable |
|
|
5,584 |
|
|
|
5,391 |
|
|
|
4,754 |
|
|
|
3,920 |
|
|
|
3,523 |
|
|
Securities, nontaxable |
|
|
678 |
|
|
|
655 |
|
|
|
747 |
|
|
|
655 |
|
|
|
717 |
|
|
Federal funds sold and other |
|
|
513 |
|
|
|
300 |
|
|
|
349 |
|
|
|
290 |
|
|
|
268 |
|
|
Total interest and dividend income |
|
|
43,624 |
|
|
|
42,652 |
|
|
|
40,792 |
|
|
|
42,446 |
|
|
|
38,318 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
2,183 |
|
|
|
1,722 |
|
|
|
1,939 |
|
|
|
1,881 |
|
|
|
2,025 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
46 |
|
|
|
33 |
|
|
|
32 |
|
|
|
24 |
|
|
|
26 |
|
|
Federal Home Loan Bank advances |
|
|
176 |
|
|
|
9 |
|
|
|
14 |
|
|
|
10 |
|
|
|
80 |
|
|
Subordinated debt |
|
|
1,653 |
|
|
|
1,599 |
|
|
|
1,592 |
|
|
|
1,556 |
|
|
|
1,557 |
|
|
Total interest expense |
|
|
4,058 |
|
|
|
3,363 |
|
|
|
3,577 |
|
|
|
3,471 |
|
|
|
3,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
39,566 |
|
|
|
39,289 |
|
|
|
37,215 |
|
|
|
38,975 |
|
|
|
34,630 |
|
|
Provision (reversal) for credit losses |
|
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
|
|
(1,657 |
) |
|
Net interest income after provision (reversal) for credit losses |
|
|
38,742 |
|
|
|
39,701 |
|
|
|
39,340 |
|
|
|
37,917 |
|
|
|
36,287 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,617 |
|
|
|
2,522 |
|
|
|
2,471 |
|
|
|
2,360 |
|
|
|
2,169 |
|
|
Debit card income |
|
|
2,810 |
|
|
|
2,628 |
|
|
|
2,633 |
|
|
|
2,574 |
|
|
|
2,679 |
|
|
Mortgage banking |
|
|
428 |
|
|
|
562 |
|
|
|
722 |
|
|
|
801 |
|
|
|
848 |
|
|
Increase in value of bank-owned life insurance |
|
|
736 |
|
|
|
865 |
|
|
|
1,060 |
|
|
|
1,169 |
|
|
|
676 |
|
|
Net gain on acquisition and branch sales |
|
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
663 |
|
|
Net gains (losses) from securities transactions |
|
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
|
|
— |
|
|
Other |
|
|
2,538 |
|
|
|
2,405 |
|
|
|
2,305 |
|
|
|
546 |
|
|
|
2,065 |
|
|
Total non-interest income |
|
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
|
|
9,100 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
15,383 |
|
|
|
15,068 |
|
|
|
15,119 |
|
|
|
13,588 |
|
|
|
12,769 |
|
|
Net occupancy and equipment |
|
|
3,007 |
|
|
|
3,170 |
|
|
|
2,967 |
|
|
|
2,475 |
|
|
|
2,327 |
|
|
Data processing |
|
|
3,642 |
|
|
|
3,769 |
|
|
|
3,867 |
|
|
|
3,257 |
|
|
|
3,474 |
|
|
Professional fees |
|
|
1,111 |
|
|
|
1,171 |
|
|
|
1,565 |
|
|
|
1,076 |
|
|
|
999 |
|
|
Advertising and business development |
|
|
972 |
|
|
|
976 |
|
|
|
1,129 |
|
|
|
760 |
|
|
|
799 |
|
|
Telecommunications |
|
|
442 |
|
|
|
470 |
|
|
|
435 |
|
|
|
439 |
|
|
|
512 |
|
|
FDIC insurance |
|
|
260 |
|
|
|
180 |
|
|
|
360 |
|
|
|
465 |
|
|
|
425 |
|
|
Courier and postage |
|
|
489 |
|
|
|
423 |
|
|
|
389 |
|
|
|
344 |
|
|
|
327 |
|
|
Free nationwide ATM cost |
|
|
541 |
|
|
|
501 |
|
|
|
515 |
|
|
|
519 |
|
|
|
513 |
|
|
Amortization of core deposit intangibles |
|
|
1,111 |
|
|
|
1,050 |
|
|
|
1,080 |
|
|
|
1,030 |
|
|
|
1,030 |
|
|
Loan expense |
|
|
207 |
|
|
|
185 |
|
|
|
308 |
|
|
|
207 |
|
|
|
181 |
|
|
Other real estate owned |
|
|
14 |
|
|
|
(1 |
) |
|
|
617 |
|
|
|
(342 |
) |
|
|
(468 |
) |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
372 |
|
|
|
— |
|
|
Merger expenses |
|
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
|
|
460 |
|
|
Other |
|
|
4,169 |
|
|
|
2,174 |
|
|
|
5,176 |
|
|
|
2,484 |
|
|
|
2,458 |
|
|
Total non-interest expense |
|
|
31,436 |
|
|
|
29,459 |
|
|
|
38,089 |
|
|
|
30,689 |
|
|
|
25,806 |
|
|
Income (loss) before income tax |
|
|
16,943 |
|
|
|
19,264 |
|
|
|
10,450 |
|
|
|
15,059 |
|
|
|
19,581 |
|
|
Provision for income taxes (benefit) |
|
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
|
|
4,415 |
|
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
Basic earnings (loss) per share |
|
$ |
0.95 |
|
|
$ |
0.94 |
|
|
$ |
0.62 |
|
|
$ |
0.82 |
|
|
$ |
1.06 |
|
|
Diluted earnings (loss) per share |
|
$ |
0.94 |
|
|
$ |
0.93 |
|
|
$ |
0.61 |
|
|
$ |
0.80 |
|
|
$ |
1.03 |
|
|
Weighted average common shares |
|
|
16,106,683 |
|
|
|
16,652,556 |
|
|
|
16,865,167 |
|
|
|
14,384,302 |
|
|
|
14,356,958 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
|
Weighted average diluted common shares |
|
|
16,312,953 |
|
|
|
16,869,152 |
|
|
|
17,141,174 |
|
|
|
14,669,312 |
|
|
|
14,674,838 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
|
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
September 30, 2021 |
|
|
June 30, 2021 |
|
|||||
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
103,126 |
|
|
$ |
89,764 |
|
|
$ |
259,131 |
|
|
$ |
141,645 |
|
|
$ |
138,869 |
|
|
Federal funds sold |
|
|
458 |
|
|
|
286 |
|
|
|
823 |
|
|
|
673 |
|
|
|
452 |
|
|
Cash and cash equivalents |
|
|
103,584 |
|
|
|
90,050 |
|
|
|
259,954 |
|
|
|
142,318 |
|
|
|
139,321 |
|
|
Available-for-sale securities |
|
|
1,288,180 |
|
|
|
1,352,894 |
|
|
|
1,327,442 |
|
|
|
1,157,423 |
|
|
|
1,041,613 |
|
|
Loans held for sale |
|
|
1,714 |
|
|
|
1,575 |
|
|
|
4,214 |
|
|
|
4,108 |
|
|
|
6,183 |
|
|
Loans, net of allowance for credit losses(1) |
|
|
3,175,208 |
|
|
|
3,194,987 |
|
|
|
3,107,262 |
|
|
|
2,633,148 |
|
|
|
2,763,227 |
|
|
Other real estate owned, net |
|
|
12,969 |
|
|
|
9,897 |
|
|
|
9,523 |
|
|
|
10,267 |
|
|
|
10,861 |
|
|
Premises and equipment, net |
|
|
101,212 |
|
|
|
103,168 |
|
|
|
104,038 |
|
|
|
90,727 |
|
|
|
90,876 |
|
|
Bank-owned life insurance |
|
|
121,665 |
|
|
|
120,928 |
|
|
|
120,787 |
|
|
|
103,431 |
|
|
|
103,321 |
|
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
|
21,479 |
|
|
|
19,890 |
|
|
|
17,510 |
|
|
|
14,540 |
|
|
|
18,454 |
|
|
Interest receivable |
|
|
16,519 |
|
|
|
16,923 |
|
|
|
18,048 |
|
|
|
15,519 |
|
|
|
15,064 |
|
|
Goodwill |
|
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Core deposit intangibles, net |
|
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
|
Other |
|
|
93,971 |
|
|
|
100,016 |
|
|
|
99,509 |
|
|
|
47,223 |
|
|
|
33,702 |
|
|
Total assets |
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
1,194,863 |
|
|
$ |
1,255,793 |
|
|
$ |
1,244,117 |
|
|
$ |
984,436 |
|
|
$ |
992,565 |
|
|
Total non-interest-bearing deposits |
|
|
1,194,863 |
|
|
|
1,255,793 |
|
|
|
1,244,117 |
|
|
|
984,436 |
|
|
|
992,565 |
|
|
Demand, savings and money market |
|
|
2,445,545 |
|
|
|
2,511,478 |
|
|
|
2,522,289 |
|
|
|
2,092,849 |
|
|
|
2,035,496 |
|
|
Time |
|
|
651,363 |
|
|
|
612,399 |
|
|
|
653,598 |
|
|
|
585,492 |
|
|
|
659,494 |
|
|
Total interest-bearing deposits |
|
|
3,096,908 |
|
|
|
3,123,877 |
|
|
|
3,175,887 |
|
|
|
2,678,341 |
|
|
|
2,694,990 |
|
|
Total deposits |
|
|
4,291,771 |
|
|
|
4,379,670 |
|
|
|
4,420,004 |
|
|
|
3,662,777 |
|
|
|
3,687,555 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
52,750 |
|
|
|
48,199 |
|
|
|
56,006 |
|
|
|
39,137 |
|
|
|
47,184 |
|
|
Federal Home Loan Bank advances |
|
|
80,000 |
|
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
|
|
9,208 |
|
|
Subordinated debt |
|
|
96,135 |
|
|
|
96,010 |
|
|
|
95,885 |
|
|
|
88,030 |
|
|
|
87,908 |
|
|
Contractual obligations |
|
|
15,813 |
|
|
|
17,307 |
|
|
|
17,692 |
|
|
|
18,771 |
|
|
|
4,469 |
|
|
Interest payable and other liabilities |
|
|
37,572 |
|
|
|
35,422 |
|
|
|
47,413 |
|
|
|
36,804 |
|
|
|
18,897 |
|
|
Total liabilities |
|
|
4,574,041 |
|
|
|
4,626,608 |
|
|
|
4,637,000 |
|
|
|
3,845,519 |
|
|
|
3,855,221 |
|
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
204 |
|
|
|
204 |
|
|
|
203 |
|
|
|
178 |
|
|
|
176 |
|
|
Additional paid-in capital |
|
|
480,897 |
|
|
|
480,106 |
|
|
|
478,862 |
|
|
|
392,321 |
|
|
|
389,394 |
|
|
Retained earnings |
|
|
116,576 |
|
|
|
102,632 |
|
|
|
88,324 |
|
|
|
79,226 |
|
|
|
68,625 |
|
|
Accumulated other comprehensive income, net of tax |
|
|
(77,426 |
) |
|
|
(50,012 |
) |
|
|
1,776 |
|
|
|
9,475 |
|
|
|
13,450 |
|
|
Treasury stock |
|
|
(92,136 |
) |
|
|
(80,915 |
) |
|
|
(68,534 |
) |
|
|
(63,451 |
) |
|
|
(58,650 |
) |
|
Total stockholders’ equity |
|
|
428,115 |
|
|
|
452,015 |
|
|
|
500,631 |
|
|
|
417,749 |
|
|
|
412,995 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Allowance for credit losses |
|
$ |
48,238 |
|
|
$ |
47,590 |
|
|
$ |
48,365 |
|
|
$ |
52,763 |
|
|
$ |
51,834 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
As of and for the three months ended |
|
|||||||||||||||||
|
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
|
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
|
Loans Held For Investment by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,643,068 |
|
|
$ |
1,552,134 |
|
|
$ |
1,486,148 |
|
|
$ |
1,308,707 |
|
|
$ |
1,261,214 |
|
|
Commercial and industrial |
|
|
578,899 |
|
|
|
629,181 |
|
|
|
567,497 |
|
|
|
569,513 |
|
|
|
732,126 |
|
|
Residential real estate |
|
|
578,936 |
|
|
|
613,928 |
|
|
|
638,087 |
|
|
|
490,633 |
|
|
|
503,110 |
|
|
Agricultural real estate |
|
|
197,938 |
|
|
|
198,844 |
|
|
|
198,330 |
|
|
|
138,793 |
|
|
|
129,020 |
|
|
Agricultural |
|
|
124,753 |
|
|
|
150,077 |
|
|
|
166,975 |
|
|
|
93,767 |
|
|
|
97,912 |
|
|
Consumer |
|
|
99,852 |
|
|
|
98,413 |
|
|
|
98,590 |
|
|
|
84,498 |
|
|
|
91,679 |
|
|
Total loans held-for-investment |
|
|
3,223,446 |
|
|
|
3,242,577 |
|
|
|
3,155,627 |
|
|
|
2,685,911 |
|
|
|
2,815,061 |
|
|
Allowance for credit losses |
|
|
(48,238 |
) |
|
|
(47,590 |
) |
|
|
(48,365 |
) |
|
|
(52,763 |
) |
|
|
(51,834 |
) |
|
Net loans held for investment |
|
$ |
3,175,208 |
|
|
$ |
3,194,987 |
|
|
$ |
3,107,262 |
|
|
$ |
2,633,148 |
|
|
$ |
2,763,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total loans |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.96 |
% |
|
|
1.84 |
% |
|
Past due or nonaccrual loans to total loans |
|
|
0.78 |
% |
|
|
0.82 |
% |
|
|
1.18 |
% |
|
|
2.78 |
% |
|
|
2.09 |
% |
|
Nonperforming assets to total assets |
|
|
0.74 |
% |
|
|
0.74 |
% |
|
|
1.28 |
% |
|
|
1.74 |
% |
|
|
1.56 |
% |
|
Nonperforming assets to total loans plus other real estate owned |
|
|
1.14 |
% |
|
|
1.15 |
% |
|
|
2.07 |
% |
|
|
2.76 |
% |
|
|
2.36 |
% |
|
Classified assets to bank total regulatory capital |
|
|
13.08 |
% |
|
|
17.12 |
% |
|
|
25.34 |
% |
|
|
24.25 |
% |
|
|
23.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balance Sheet Data (QTD Average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
1,319,099 |
|
|
$ |
1,397,421 |
|
|
$ |
1,330,267 |
|
|
$ |
1,061,178 |
|
|
$ |
986,986 |
|
|
Total gross loans receivable |
|
|
3,216,853 |
|
|
|
3,195,787 |
|
|
|
3,181,279 |
|
|
|
2,748,202 |
|
|
|
2,853,145 |
|
|
Interest-earning assets |
|
|
4,675,967 |
|
|
|
4,715,389 |
|
|
|
4,713,817 |
|
|
|
4,005,509 |
|
|
|
3,964,633 |
|
|
Total assets |
|
|
5,067,686 |
|
|
|
5,108,120 |
|
|
|
5,068,278 |
|
|
|
4,275,298 |
|
|
|
4,231,439 |
|
|
Interest-bearing deposits |
|
|
3,112,300 |
|
|
|
3,163,777 |
|
|
|
3,101,657 |
|
|
|
2,702,040 |
|
|
|
2,656,052 |
|
|
Borrowings |
|
|
238,062 |
|
|
|
160,094 |
|
|
|
165,941 |
|
|
|
132,581 |
|
|
|
171,658 |
|
|
Total interest-bearing liabilities |
|
|
3,350,362 |
|
|
|
3,323,871 |
|
|
|
3,267,598 |
|
|
|
2,834,621 |
|
|
|
2,827,710 |
|
|
Total deposits |
|
|
4,340,196 |
|
|
|
4,393,879 |
|
|
|
4,342,732 |
|
|
|
3,686,169 |
|
|
|
3,624,950 |
|
|
Total liabilities |
|
|
4,630,204 |
|
|
|
4,615,521 |
|
|
|
4,505,232 |
|
|
|
3,852,419 |
|
|
|
3,827,400 |
|
|
Total stockholders' equity |
|
|
437,483 |
|
|
|
492,599 |
|
|
|
563,046 |
|
|
|
422,879 |
|
|
|
404,039 |
|
|
Tangible common equity* |
|
|
368,505 |
|
|
|
422,418 |
|
|
|
501,860 |
|
|
|
376,544 |
|
|
|
356,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) annualized |
|
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
Return on average assets before income tax and provision for loan losses* |
|
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
Return on average equity (ROAE) annualized |
|
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
|
|
15.06 |
% |
|
Return on average equity before income tax and provision for loan losses* |
|
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
|
|
17.79 |
% |
|
Return on average tangible common equity (ROATCE) annualized* |
|
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
Yield on loans annualized |
|
|
4.59 |
% |
|
|
4.61 |
% |
|
|
4.36 |
% |
|
|
5.43 |
% |
|
|
4.75 |
% |
|
Cost of interest-bearing deposits annualized |
|
|
0.28 |
% |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.28 |
% |
|
|
0.31 |
% |
|
Cost of total deposits annualized |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
Net interest margin annualized |
|
|
3.39 |
% |
|
|
3.38 |
% |
|
|
3.13 |
% |
|
|
3.86 |
% |
|
|
3.50 |
% |
|
Efficiency ratio* |
|
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
|
|
58.85 |
% |
|
Non-interest income / average assets |
|
|
0.76 |
% |
|
|
0.72 |
% |
|
|
0.72 |
% |
|
|
0.73 |
% |
|
|
0.86 |
% |
|
Non-interest expense / average assets |
|
|
2.49 |
% |
|
|
2.34 |
% |
|
|
2.98 |
% |
|
|
2.85 |
% |
|
|
2.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
|
9.11 |
% |
|
|
9.07 |
% |
|
|
9.09 |
% |
|
|
9.02 |
% |
|
|
8.88 |
% |
|
Common Equity Tier 1 Capital Ratio |
|
|
12.08 |
% |
|
|
11.81 |
% |
|
|
12.03 |
% |
|
|
12.39 |
% |
|
|
12.41 |
% |
|
Tier 1 Risk Based Capital Ratio |
|
|
12.71 |
% |
|
|
12.43 |
% |
|
|
12.67 |
% |
|
|
12.90 |
% |
|
|
12.93 |
% |
|
Total Risk Based Capital Ratio |
|
|
15.97 |
% |
|
|
15.66 |
% |
|
|
15.96 |
% |
|
|
16.63 |
% |
|
|
16.74 |
% |
|
Total stockholders' equity to total assets |
|
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
|
|
9.68 |
% |
|
Tangible common equity to tangible assets* |
|
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
|
|
8.68 |
% |
|
Dividend payout ratio |
|
|
8.61 |
% |
|
|
8.58 |
% |
|
|
13.05 |
% |
|
|
9.96 |
% |
|
|
0.00 |
% |
|
Book value per common share |
|
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
|
$ |
28.76 |
|
|
Tangible book value per common share* |
|
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
|
$ |
25.51 |
|
|
Tangible book value per diluted common share* |
|
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
|
$ |
24.98 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the six months ended |
|
|
For the six months ended |
|
||||||||||||||||||
|
|
June 30, 2022 |
|
|
June 30, 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 |
$ |
581,880 |
|
|
$ |
15,244 |
|
|
|
5.28 |
% |
|
$ |
814,895 |
|
|
$ |
20,962 |
|
|
|
5.19 |
% |
|
Commercial real estate |
|
1,200,212 |
|
|
|
27,972 |
|
|
|
4.70 |
% |
|
|
981,482 |
|
|
|
22,873 |
|
|
|
4.70 |
% |
|
Real estate construction |
|
363,542 |
|
|
|
7,596 |
|
|
|
4.21 |
% |
|
|
254,807 |
|
|
|
4,531 |
|
|
|
3.59 |
% |
|
Residential real estate |
|
615,035 |
|
|
|
10,872 |
|
|
|
3.56 |
% |
|
|
430,123 |
|
|
|
9,093 |
|
|
|
4.26 |
% |
|
Agricultural real estate |
|
202,091 |
|
|
|
5,306 |
|
|
|
5.29 |
% |
|
|
136,366 |
|
|
|
3,384 |
|
|
|
5.00 |
% |
|
Agricultural |
|
142,210 |
|
|
|
3,849 |
|
|
|
5.46 |
% |
|
|
94,596 |
|
|
|
2,062 |
|
|
|
4.40 |
% |
|
Consumer |
|
101,409 |
|
|
|
2,316 |
|
|
|
4.60 |
% |
|
|
83,083 |
|
|
|
1,906 |
|
|
|
4.63 |
% |
|
Total loans |
|
3,206,379 |
|
|
|
73,155 |
|
|
|
4.60 |
% |
|
|
2,795,352 |
|
|
|
64,811 |
|
|
|
4.68 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,248,178 |
|
|
|
10,975 |
|
|
|
1.77 |
% |
|
|
863,801 |
|
|
|
7,322 |
|
|
|
1.71 |
% |
|
Nontaxable securities |
|
109,866 |
|
|
|
1,333 |
|
|
|
2.45 |
% |
|
|
103,529 |
|
|
|
1,441 |
|
|
|
2.81 |
% |
|
Total securities |
|
1,358,044 |
|
|
|
12,308 |
|
|
|
1.83 |
% |
|
|
967,330 |
|
|
|
8,763 |
|
|
|
1.83 |
% |
|
Federal funds sold and other |
|
131,148 |
|
|
|
813 |
|
|
|
1.25 |
% |
|
|
165,408 |
|
|
|
556 |
|
|
|
0.68 |
% |
|
Total interest-earning assets |
$ |
4,695,571 |
|
|
|
86,276 |
|
|
|
3.71 |
% |
|
$ |
3,928,090 |
|
|
|
74,130 |
|
|
|
3.81 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand savings and money market deposits |
$ |
2,507,707 |
|
|
|
2,342 |
|
|
|
0.19 |
% |
|
$ |
2,073,658 |
|
|
|
1,865 |
|
|
|
0.18 |
% |
|
Time deposits |
|
630,189 |
|
|
|
1,563 |
|
|
|
0.50 |
% |
|
|
599,353 |
|
|
|
2,570 |
|
|
|
0.86 |
% |
|
Total interest-bearing deposits |
|
3,137,896 |
|
|
|
3,905 |
|
|
|
0.25 |
% |
|
|
2,673,011 |
|
|
|
4,435 |
|
|
|
0.33 |
% |
|
FHLB advances |
|
45,299 |
|
|
|
185 |
|
|
|
0.82 |
% |
|
|
23,911 |
|
|
|
145 |
|
|
|
1.22 |
% |
|
Other borrowings |
|
153,995 |
|
|
|
3,331 |
|
|
|
4.36 |
% |
|
|
131,687 |
|
|
|
3,161 |
|
|
|
4.84 |
% |
|
Total interest-bearing liabilities |
$ |
3,337,190 |
|
|
|
7,421 |
|
|
|
0.45 |
% |
|
$ |
2,828,609 |
|
|
|
7,741 |
|
|
|
0.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
78,855 |
|
|
|
|
|
|
|
|
|
|
$ |
66,389 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
3.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. |
|
||||||||||||||||||||||
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
TABLE 6. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the three months ended |
|
|
For the three months ended |
|
||||||||||||||||||
|
|
June 30, 2022 |
|
|
June 30, 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 |
$ |
588,126 |
|
|
$ |
7,483 |
|
|
|
5.10 |
% |
|
$ |
826,647 |
|
|
$ |
11,729 |
|
|
|
5.69 |
% |
|
Commercial real estate |
|
1,210,185 |
|
|
|
14,521 |
|
|
|
4.81 |
% |
|
|
991,033 |
|
|
|
11,433 |
|
|
|
4.63 |
% |
|
Real estate construction |
|
384,317 |
|
|
|
4,297 |
|
|
|
4.48 |
% |
|
|
253,947 |
|
|
|
2,352 |
|
|
|
3.71 |
% |
|
Residential real estate |
|
597,680 |
|
|
|
5,206 |
|
|
|
3.49 |
% |
|
|
465,525 |
|
|
|
4,642 |
|
|
|
4.00 |
% |
|
Agricultural real estate |
|
202,038 |
|
|
|
2,643 |
|
|
|
5.25 |
% |
|
|
131,906 |
|
|
|
1,687 |
|
|
|
5.13 |
% |
|
Agricultural |
|
134,826 |
|
|
|
1,533 |
|
|
|
4.56 |
% |
|
|
94,407 |
|
|
|
1,024 |
|
|
|
4.35 |
% |
|
Consumer |
|
99,680 |
|
|
|
1,166 |
|
|
|
4.69 |
% |
|
|
89,680 |
|
|
|
943 |
|
|
|
4.22 |
% |
|
Total loans |
|
3,216,852 |
|
|
|
36,849 |
|
|
|
4.59 |
% |
|
|
2,853,145 |
|
|
|
33,810 |
|
|
|
4.75 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,210,828 |
|
|
|
5,584 |
|
|
|
1.85 |
% |
|
|
887,983 |
|
|
|
3,523 |
|
|
|
1.59 |
% |
|
Nontaxable securities |
|
108,271 |
|
|
|
678 |
|
|
|
2.51 |
% |
|
|
99,003 |
|
|
|
717 |
|
|
|
2.90 |
% |
|
Total securities |
|
1,319,099 |
|
|
|
6,262 |
|
|
|
1.90 |
% |
|
|
986,986 |
|
|
|
4,240 |
|
|
|
1.72 |
% |
|
Federal funds sold and other |
|
140,016 |
|
|
|
513 |
|
|
|
1.47 |
% |
|
|
124,502 |
|
|
|
268 |
|
|
|
0.86 |
% |
|
Total interest-earning assets |
$ |
4,675,967 |
|
|
|
43,624 |
|
|
|
3.74 |
% |
|
$ |
3,964,633 |
|
|
|
38,318 |
|
|
|
3.88 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand savings and money market deposits |
$ |
2,481,602 |
|
|
|
1,346 |
|
|
|
0.22 |
% |
|
$ |
2,068,319 |
|
|
|
895 |
|
|
|
0.17 |
% |
|
Time deposits |
|
630,698 |
|
|
|
837 |
|
|
|
0.53 |
% |
|
|
587,733 |
|
|
|
1,130 |
|
|
|
0.77 |
% |
|
Total interest-bearing deposits |
|
3,112,300 |
|
|
|
2,183 |
|
|
|
0.28 |
% |
|
|
2,656,052 |
|
|
|
2,025 |
|
|
|
0.31 |
% |
|
FHLB advances |
|
80,266 |
|
|
|
176 |
|
|
|
0.88 |
% |
|
|
37,656 |
|
|
|
80 |
|
|
|
0.86 |
% |
|
Other borrowings |
|
157,796 |
|
|
|
1,699 |
|
|
|
4.32 |
% |
|
|
134,002 |
|
|
|
1,583 |
|
|
|
4.74 |
% |
|
Total interest-bearing liabilities |
$ |
3,350,362 |
|
|
|
4,058 |
|
|
|
0.49 |
% |
|
$ |
2,827,710 |
|
|
|
3,688 |
|
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,566 |
|
|
|
|
|
|
|
|
|
|
$ |
34,630 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 – 7/19/2022
TABLE 7. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the three months ended |
|
|
For the three months ended |
|
||||||||||||||||||
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
||||||||||||||||||
|
|
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 |
$ |
588,126 |
|
|
$ |
7,483 |
|
|
|
5.10 |
% |
|
$ |
575,563 |
|
|
$ |
7,761 |
|
|
|
5.47 |
% |
|
Commercial real estate |
|
1,210,185 |
|
|
|
14,521 |
|
|
|
4.81 |
% |
|
|
1,190,128 |
|
|
|
13,451 |
|
|
|
4.58 |
% |
|
Real estate construction |
|
384,317 |
|
|
|
4,297 |
|
|
|
4.48 |
% |
|
|
342,536 |
|
|
|
3,299 |
|
|
|
3.91 |
% |
|
Residential real estate |
|
597,680 |
|
|
|
5,206 |
|
|
|
3.49 |
% |
|
|
632,581 |
|
|
|
5,665 |
|
|
|
3.63 |
% |
|
Agricultural real estate |
|
202,038 |
|
|
|
2,643 |
|
|
|
5.25 |
% |
|
|
202,145 |
|
|
|
2,663 |
|
|
|
5.34 |
% |
|
Agricultural |
|
134,826 |
|
|
|
1,533 |
|
|
|
4.56 |
% |
|
|
149,676 |
|
|
|
2,316 |
|
|
|
6.28 |
% |
|
Consumer |
|
99,680 |
|
|
|
1,166 |
|
|
|
4.69 |
% |
|
|
103,158 |
|
|
|
1,151 |
|
|
|
4.53 |
% |
|
Total loans |
|
3,216,852 |
|
|
|
36,849 |
|
|
|
4.59 |
% |
|
|
3,195,787 |
|
|
|
36,306 |
|
|
|
4.61 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,210,828 |
|
|
|
5,584 |
|
|
|
1.85 |
% |
|
|
1,285,942 |
|
|
|
5,391 |
|
|
|
1.70 |
% |
|
Nontaxable securities |
|
108,271 |
|
|
|
678 |
|
|
|
2.51 |
% |
|
|
111,479 |
|
|
|
655 |
|
|
|
2.38 |
% |
|
Total securities |
|
1,319,099 |
|
|
|
6,262 |
|
|
|
1.90 |
% |
|
|
1,397,421 |
|
|
|
6,046 |
|
|
|
1.75 |
% |
|
Federal funds sold and other |
|
140,016 |
|
|
|
513 |
|
|
|
1.47 |
% |
|
|
122,181 |
|
|
|
300 |
|
|
|
1.00 |
% |
|
Total interest-earning assets |
$ |
4,675,967 |
|
|
|
43,624 |
|
|
|
3.74 |
% |
|
$ |
4,715,389 |
|
|
|
42,652 |
|
|
|
3.67 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand savings and money market deposits |
$ |
2,481,602 |
|
|
|
1,346 |
|
|
|
0.22 |
% |
|
$ |
2,534,102 |
|
|
|
996 |
|
|
|
0.16 |
% |
|
Time deposits |
|
630,698 |
|
|
|
837 |
|
|
|
0.53 |
% |
|
|
629,675 |
|
|
|
726 |
|
|
|
0.47 |
% |
|
Total interest-bearing deposits |
|
3,112,300 |
|
|
|
2,183 |
|
|
|
0.28 |
% |
|
|
3,163,777 |
|
|
|
1,722 |
|
|
|
0.22 |
% |
|
FHLB advances |
|
80,266 |
|
|
|
176 |
|
|
|
0.88 |
% |
|
|
9,943 |
|
|
|
9 |
|
|
|
0.38 |
% |
|
Other borrowings |
|
157,796 |
|
|
|
1,699 |
|
|
|
4.32 |
% |
|
|
150,151 |
|
|
|
1,632 |
|
|
|
4.41 |
% |
|
Total interest-bearing liabilities |
$ |
3,350,362 |
|
|
|
4,058 |
|
|
|
0.49 |
% |
|
$ |
3,323,871 |
|
|
|
3,363 |
|
|
|
0.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,566 |
|
|
|
|
|
|
|
|
|
|
$ |
39,289 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 – 7/19/2022
TABLE 8. NON-GAAP FINANCIAL MEASURES (Unaudited)
(Dollars in thousands, except per share data)
|
|
As of and for the three months ended |
|
|||||||||||||||||
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|||||
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
$ |
428,115 |
|
|
$ |
452,015 |
|
|
$ |
500,631 |
|
|
$ |
417,749 |
|
|
$ |
412,995 |
|
|
Less: goodwill |
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Less: core deposit intangibles, net |
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
|
Less: mortgage servicing asset, net |
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
|
|
— |
|
|
Less: naming rights, net |
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
|
|
1,109 |
|
|
Tangible common equity |
$ |
361,169 |
|
|
$ |
382,393 |
|
|
$ |
429,924 |
|
|
$ |
372,087 |
|
|
$ |
366,292 |
|
|
Common shares issued at period end |
|
16,106,818 |
|
|
|
16,454,966 |
|
|
|
16,760,115 |
|
|
|
14,365,785 |
|
|
|
14,360,172 |
|
|
Diluted common shares outstanding at period end |
|
16,289,635 |
|
|
|
16,662,779 |
|
|
|
17,050,115 |
|
|
|
14,637,306 |
|
|
|
14,664,603 |
|
|
Book value per common share |
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
|
$ |
28.76 |
|
|
Tangible book value per common share |
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
|
$ |
25.51 |
|
|
Tangible book value per diluted common share |
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
|
$ |
24.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
Less: goodwill |
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Less: core deposit intangibles, net |
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
|
Less: mortgage servicing asset, net |
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
|
|
— |
|
|
Less: naming rights, net |
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
|
|
1,109 |
|
|
Tangible assets |
$ |
4,935,210 |
|
|
$ |
5,009,001 |
|
|
$ |
5,066,924 |
|
|
$ |
4,217,606 |
|
|
$ |
4,221,513 |
|
|
Total stockholders' equity to total assets |
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
|
|
9.68 |
% |
|
Tangible common equity to tangible assets |
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
|
|
8.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average stockholders' equity |
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,046 |
|
|
$ |
422,879 |
|
|
$ |
404,039 |
|
|
Less: average intangible assets |
|
68,978 |
|
|
|
70,181 |
|
|
|
61,186 |
|
|
|
46,335 |
|
|
|
47,334 |
|
|
Average tangible common equity |
$ |
368,505 |
|
|
$ |
422,418 |
|
|
$ |
501,860 |
|
|
$ |
376,544 |
|
|
$ |
356,705 |
|
|
Net income (loss) allocable to common stockholders |
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
Amortization of intangible assets |
|
1,148 |
|
|
|
1,085 |
|
|
|
1,116 |
|
|
|
1,040 |
|
|
|
1,041 |
|
|
Less: tax effect of intangible assets amortization |
|
241 |
|
|
|
228 |
|
|
|
234 |
|
|
|
218 |
|
|
|
219 |
|
|
Adjusted net income (loss) allocable to common stockholders |
$ |
16,166 |
|
|
$ |
16,507 |
|
|
$ |
11,348 |
|
|
$ |
12,595 |
|
|
$ |
15,988 |
|
|
Return on total average stockholders' equity (ROAE) annualized |
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
|
|
15.06 |
% |
|
Return on average tangible common equity (ROATCE) annualized |
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
$ |
31,436 |
|
|
$ |
29,459 |
|
|
$ |
38,089 |
|
|
$ |
30,689 |
|
|
$ |
25,806 |
|
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
372 |
|
|
|
— |
|
|
Less: merger expense |
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
|
|
460 |
|
|
Non-interest expense |
$ |
31,348 |
|
|
$ |
29,136 |
|
|
$ |
33,527 |
|
|
$ |
26,302 |
|
|
$ |
25,346 |
|
|
Net interest income |
$ |
39,566 |
|
|
$ |
39,289 |
|
|
$ |
37,215 |
|
|
$ |
38,975 |
|
|
$ |
34,630 |
|
|
Non-interest income |
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
|
|
9,100 |
|
|
Less: net gain on acquisition and branch sales |
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
663 |
|
|
Less: net gains (losses) from securities transactions |
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
|
|
— |
|
|
Adjusted non-interest income, adjusted |
$ |
9,129 |
|
|
$ |
8,982 |
|
|
$ |
9,191 |
|
|
$ |
7,450 |
|
|
$ |
8,437 |
|
|
Net interest income plus adjusted non-interest income |
$ |
48,695 |
|
|
$ |
48,271 |
|
|
$ |
46,406 |
|
|
$ |
46,425 |
|
|
$ |
43,067 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 7/19/2022
|
Non-interest expense to net interest income plus non-interest income |
|
63.89 |
% |
|
|
60.98 |
% |
|
|
82.06 |
% |
|
|
65.57 |
% |
|
|
59.01 |
% |
|
Efficiency ratio |
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
|
|
58.85 |
% |
|
Net income (loss) allocable to common stockholders |
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
Add: income tax provision |
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
|
|
4,415 |
|
|
Add: provision (reversal) of credit losses |
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
|
|
(1,657 |
) |
|
Adjusted net income |
$ |
17,767 |
|
|
$ |
18,852 |
|
|
$ |
8,325 |
|
|
$ |
16,117 |
|
|
$ |
17,924 |
|
|
Total average assets |
$ |
5,067,687 |
|
|
$ |
5,108,120 |
|
|
$ |
5,068,301 |
|
|
$ |
4,275,298 |
|
|
$ |
4,231,439 |
|
|
Total average stockholders' equity |
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,023 |
|
|
$ |
422,879 |
|
|
$ |
404,039 |
|
|
Return on average assets (ROAA) annualized |
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
Adjusted return on average assets |
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
Adjusted return on average equity |
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
|
|
17.79 |
% |
Second Quarter Earnings Presentation 7/20/2022 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) $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 Scale: 2017-2022 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 Originated $650 million of PPP For the quarter ended June 30, 2022. As of 7/15/2022
Our Operating Footprint 4
Strong Senior Leadership Team 5 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 Became COO in April 2020 Served as CFO from 2013 to 2020 EQBK Board of Directors, 2011-current Became President in April 2020 Served as COO from 2018 to 2020 Served as President of UMBF Commercial Banking Served as CFO at United Bank in Hartford, CT ($7.3B assets) Served as CFO and head of Treasury at Rockville Bank, Glastonbury, Conn. Julie Huber EVP, Strategic Initiatives Years at Equity: 19 | Years in Banking: 32 Served in variety of leadership roles in her time at Equity Bank John Creech EVP, Chief Credit Officer Years at Equity: <1 | Years in Banking: 13 Brett Reber EVP, General Counsel Years at Equity: 4 | Years in Law: 34 Greg Lawson EVP, Chief Information Officer Years at Equity: <1 | Years in Banking: 12 Prior to joining Equity Bank, practiced law for 30 years with Wise & Reber, L.C. Previously served as Chief Credit Policy and Administration Officer for Synovus Bank Previously served as Director, IT Solutions at BOK Financial, and Director of Infrastructure Engineering and Operations at Jack Henry and Associates
Our Value Proposition 6 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
Proven record of M&A execution 7 Pricing Multiples Transaction Impact
Our Opportunity 8 There are over 1000 bank offices with deposits less than $750MM in our operating market
Long Term Key Strategic Objectives 9 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 10 Deposit Composition(1) Fully integrated digital banking platform with an adoption rate of 60.9% among core banking customers Continued emphasis on development of relationships to drive growth in non-interest bearing deposits. Cost of Deposits: 0.20%(1) Core Deposits(2) / Total Deposits Total Deposits & Loan to Deposit Ratio For the quarter ended June 30, 2022. Includes interest and non-interest bearing deposits. Core deposits excludes time deposits > $100K. Dollars in millions.
Core Deposit Growth 11 Cost of Deposits(1) 0.18% 0.22% 0.52% 0.91% 1.30% Year-to-date, Includes the impact of non-interest bearing deposits Dollars in millions
Asset Quality 12 Commentary Net charge-offs were $176 thousand for the quarter, or 2 bps of average loan assets annualized. Reserve ratio, exclusive of PPP assets, is 1.50% 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 $1.8 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 $4.2M, classified as Other Real Estate Owned within the Statements of Condition. (1,2) (2)
Credit Quality 13 Total Reserve Ratio Classified Assets Nonaccrual Detail
Diversified Loan Portfolio 14 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 June 30, 2022, yield has been adjusted to exclude PPP loans, including these loans yield would be 5.00%, 4.77% and 4.60%, respectively. 4.56%
Allowance for Credit Loss (ACL) 15 ACL intra-quarter movement
We believe the structure in the portfolio outperforms peers through the cycle Portfolio average life is shorter than peer; effective duration equal to peer and hard final maturities of our bullet investments provide guaranteed cash flow Portfolio is nearly fully extended; future cash flow will be little affected by higher rates Investment Portfolio Strategy 16 Investment Portfolio Thesis Environment Shift: 2020 -> 2022 As we began 2020, investment portfolio was over 80% Agency MBS and CMOs As rates collapsed, the majority of the portfolio prepaid, leaving the bank with hundreds of millions in cash needed to be reinvested in the worst rate environment in history Private Label Mortgage Portfolio Predominantly front cash flow tranches of 30-year mortgage pools. Modeled to have 5-year average life, however, is currently prepaying faster and cash-flowing like a 2.5-year average life portfolio. 14% of investment portfolio but 20% of cash flow Barbell Strategy Private label front-load is combined with longer bullet investments in the 8-to-10-year part of the curve, encouraged by low short to medium term yields with a steep curve in 2021 Provided similar yields to Agency MBS options without similar extension risk Agency MBS virtually uninvestable in 2021; choice between 1.5%-2.0% coupons or 2.5%+ coupons with prepayments outpacing amortization of premium Current Investment Portfolio Mix
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 6/30/2022 2022 Capital Management Actions As of June 30, 2022 the tangible common equity ratio is being negatively impacted by ($77.4) million in accumulated other comprehensive income. Adjusting for this temporary decline in fair value, would result in a Tangible Common Equity Ratio of 8.89%.
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 less PPP is equal to Noninterest Income of $18.7 million less gain on acquisition and branch sale of $540 thousand and net gain on securities transactions of $8 thousand plus net interest income of $78.9 million less PPP interest income of $1.2 million Other includes Loan repo obligation reversal of $1.2 million and gain on derivative swap of $1.1 million
Noninterest Income 20 Quarterly Results(1) (1) Excludes the impact of PPP loans, net gain on acquisition and branch sale, 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 second, third, fourth quarter 2021 and first and second quarter 2022 results would be 3.50%, 3.86%, 3.13%, 3.38% and 3.39%, respectively, while YTD 2020 and 2021 results would be 3.63% and 3.44%, respectively. (1) (1)
Core Earnings per Share Contribution - PPP 22 Quarterly Results Note: Utilizes the quarterly effective tax rate.
Net Interest Margin 23 Key Net Interest Margin Drivers Government Programs PPP fee income due to forgiveness received by borrowers decreased during the quarter. Roughly $125 thousand in deferred fee balances remain on the books at quarter end. Non-Interest Bearing Deposits Non-interest bearing deposits now constitute 28% of total deposits, and core deposits / total deposits continues to increase. Loan / Deposit ratio increased each of the last two periods Day Count Day count in Q2 2022 vs Q1 2021 reduced net interest income roughly $430 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 Second Quarter NIM
Performance Metrics 24 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 25 Tangible book value per share(1) decreased $0.82 in Q2 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 26 Gross Loans 6.6% CAGR Total Deposits 9.4% CAGR
Second Quarter Highlights 27 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 and sale of branch. Adjusted to exclude the impact of PPP loans. Excludes gain / (loss) on sale of securities.
Adjusted Operating Performance 28 Adjusted Net Income(1) Adjusted Diluted Earnings Per Share(1) Efficiency Ratio & Adj. Non-Interest Expense / Average Assets Adjusted Pre-Tax, Pre-Provision Net Revenue(1) Non-GAAP financial measures. 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. Adjustments utilize an effective tax rate of 21%. (1)
Outlook on Key Business Drivers 29 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 Net Loss on Securities Transactions of $32K and Gain on Acquisition of $540K Excluding Merger Expenses of $88K and reserve for unfunded commitment of $289 thousand Q1’22 representative of year-to-date annual effective tax rate
Focus Variables for Outlook & Forecast 30 Our outlook requires clarity around certain variables, including:
31 Appendix
Our Markets 32 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 33 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 34
Selected Balance Sheet Data 35 Includes interest-bearing deposits in other banks. Includes Federal Reserve Bank and Federal Home Loan Bank stock. Includes loans held-for-sale.
Capitalization 36 (1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Maintaining a strong regulatory capital position
37 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
38 TCE to TA and Tangible Book Value per Share
39 ROATCE and Efficiency Ratio
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