Exhibit 99.1
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
Equity Bancshares, Inc. Results Include Strong Organic Growth
While Expanding Kansas Franchise
Company’s third quarter includes loan growth, exclusive of PPP, accompanying successful integration of largest merger in Company’s history and announcement of the Company’s first common stock dividend
WICHITA, Kansas, October 19, 2021 (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 $11.8 million and $0.80 earnings per diluted share for the quarter ended September 30, 2021. Equity’s results occurred as the Company completed its acquisition of American State Bancshares, Inc. on October 1, 2021.
“As the founder of Equity Bank, our results this quarter are particularly satisfying, as we celebrate continued loan growth, excellent earnings and our first cash stock dividend while simultaneously closing the largest acquisition in our history. I am grateful to our loyal employees and stockholders as we continue to grow and improve Equity Bank,” said Brad S. Elliott, Chairman and CEO of Equity.
I’m pleased with the growth of the Equity Bank brand and the hard work and collaboration of our team members throughout our regions, including our bank employees, lenders, and operations professionals who placed the customer first and executed with open doors, expertise, and availability,” said Mr. Elliott. “We’ve successfully integrated American State Bank & Trust Company into our platform while continuing to provide momentum, support and expertise to our customers throughout our franchise.”
Equity customers successfully had $175.7 million of Paycheck Protection Program (“PPP”) loans forgiven during the quarter, resulting in the recognition of fee income totaling $7.7 million in the three-month period ended September 30, 2021. At September 30, 2021, the total unrecognized fee income associated with PPP loans was $3.0 million.
“Our entrepreneurial culture drives the efficiency of our merger process, assists in building a solid community banking network that is responsive to a diverse customer base and excels at adding core deposits and new households in a changing environment. Our mission as a community bank is to continue to prioritize local customers, local service, and bankers willing to go above and beyond. As we continue to grow, expand and deliver, our focus will drive value for our shareholders,” said Mr. Elliott.
Notable Items:
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• |
Diluted earnings per share of $0.80, adjusted to reflect core operating results, was $0.96 per diluted share. The adjustments to earnings were comprised of the exclusion of merger expenses of $4.0 million, non-accrual interest income of $1.4 million, bank-owned life insurance death benefit of $486 thousand and additional reserving for repurchase obligations associated with the Company’s Federal Deposit Insurance Corporation (“FDIC”) assisted transaction of $771 thousand. |
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• |
Linked quarter service fee revenue, including deposit services, mortgage banking, trust and wealth and insurance services increased to $6.7 million from $6.4 million, or 3.7%. |
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• |
The Company authorized a second stock repurchase program in the third quarter of 2020 totaling 800,000 shares. During the quarter ended September 30, 2021, the Company repurchased 57,239 shares at a weighted average cost of $30.64 per share, totaling $1.8 million. At the end of the quarter, capacity of 123,448 shares remained under the current repurchase program. The Board authorized the repurchase of up to an additional 1,000,000 shares of Equity’s outstanding common stock, beginning October 29, 2021, and concluding October 28, 2022, subject to non-objection by the Company’s primary regulators. |
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• |
The Company announced and paid its first common stock dividend of $0.08 per share to shareholders of record as of September 30, 2021. |
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
Equity’s Balance Sheet Highlights:
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|
• |
During the quarter total loans decreased from $2.82 billion to $2.69 billion, including a reduction in PPP assets of $175.7 million. Excluding the impact of PPP, organic growth linked quarter was $41.8 million, or 7.1% annualized. |
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• |
Total deposits of $3.66 billion at September 30, 2021, as compared to $3.69 billion at June 30, 2021. Checking, savings and money market accounts were $3.08 billion at September 30, 2021, relative to $3.03 billion at June 30, 2021. As compared to December 31, 2020, the Bank has increased non-interest-bearing deposits by $192.8 million, or 24.4%. |
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• |
As excess liquidity continues to impact the operating environment at quarter end, securities and interest-earning cash and cash equivalents comprise 31.4% of average earnings assets, up from 28.0% at the end of the linked quarter and 25.0% at the end of the comparable quarter in the previous year. |
Financial Results for the Quarter Ended September 30, 2021
Net income allocable to common stockholders was $11.8 million, or $0.80 per diluted share, for the three months ended September 30, 2021, as compared to $15.2 million, or $1.03 per diluted share, for the three months ended June 30, 2021, a decrease of $3.4 million. This third quarter decrease was attributable to an increase in non-interest expense of $4.9 million, an increase in provision for credit losses of $2.7 million and a decrease of $1.3 million in non-interest income, partially offset by an increase in net interest income $4.3 million and a decrease in provision for income taxes of $1.1 million.
Net Interest Income
Net interest income was $39.0 million for the three months ended September 30, 2021, as compared to $34.6 million for the three months ended June 30, 2021, an increase of $4.3 million, or 12.6%. The increase in net interest income was primarily driven by an increase in loan fees, due to the forgiveness of PPP assets, of $2.0 million for the quarter ended September 30, 2021, compared to the quarter ended June 30, 2021. The yield on interest-earning assets increased 32-basis points to 4.20% during the quarter ended September 30, 2021, as compared to 3.88% for the quarter ended June 30, 2021. The cost of interest-bearing deposits declined by 3-basis points to 0.28% for the three months ended September 30, 2021, from 0.31% in the previous quarter.
Provision for Credit Losses
During the three months ended September 30, 2021, there was a provision of $1.1 million in the allowance for credit losses recognized through the provision for credit losses as compared to a net release of $1.7 million of provision for credit losses for the three months ended June 30, 2021. The comparative increase was primarily driven by an increase in reserves on specifically assessed assets which was partially offset by improving trends in the Company’s loss experience and moderating economic impacts. For the three months ended September 30, 2021, we had net charge-offs of $129 thousand as compared to $567 thousand for the three months ended June 30, 2021.
Non-Interest Income
Total non-interest income was $7.8 million for the three months ended September 30, 2021, as compared to $9.1 million for the three months ended June 30, 2021, or a decline of 14.0% quarter over quarter. Other non-interest income was $546 thousand, a decrease of $1.5 million, or 73.6%, from the quarter ended June 30, 2021. The decrease in other non-interest income was primarily due to the accounting for potential repurchase obligations associated with assets previously purchased through a FDIC assisted transaction. In the second quarter, the Company trued up the guarantee on a number of assets resulting in income recognition of $917 thousand. In the third quarter, two unrelated assets were identified to have experienced deterioration requiring the recognition of a reserve, resulting in $771 thousand in expense. The net change in these inputs account for the change in the line item.
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
During the quarter, service fee revenue, including deposit services, mortgage banking, trust and wealth management, credit cards and insurance increased to $6.7 million from $6.4 million during the second quarter. The growth was driven by increasing transaction activity and insurance commissions and fees.
Non-Interest Expense
Total non-interest expense for the quarter ended September 30, 2021, was $30.7 million as compared to $25.8 million for the quarter ended June 30, 2021. The $4.9 million change is primarily attributed to increases of $3.6 million in merger expenses, $819 thousand in salaries and employee benefits, driven by a comparative reduction in the deferral of cost associated with loan originations, and $372 thousand loss on debt extinguishment, related to the repayment of fixed-rate term advances with Federal Home Loan Bank that were acquired through a prior merger.
Asset Quality
As of September 30, 2021, Equity’s allowance for credit losses to total loans was 2.0%, as compared to 1.8% at June 30, 2021. Nonperforming assets were $74.3 million as of September 30, 2021, or 1.7% of total assets, compared to $66.7 million at June 30, 2021, or 1.6% of total assets. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $112.4 million, or 24.3% of regulatory capital, up from $103.5 million, or 23.2% of regulatory capital as of June 30, 2021.
During the quarter non-performing assets increased by $7.5 million due to the transition of one significant relationship to non-accrual. The Company provided $1.1 million to the allowance for credit losses, comprised of an increase in specific reserves, primarily driven by the migration of this asset to non-accrual, partially offset by improving historical loss performance and the continued moderation of economic conditions following the height of the pandemic.
Regulatory Capital
The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.4%, the total capital to risk-weighted assets was 16.6% and the total leverage ratio was 9.0% at September 30, 2021. At December 31, 2020, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.8%, the total capital to risk-weighted assets ratio was 17.4% and the total leverage ratio was 9.3%.
The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.5%, a ratio of total capital to risk-weighted assets of 15.8% and a total leverage ratio of 10.1% at September 30, 2021. At December 31, 2020, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 14.5%, the ratio of total capital to risk-weighted assets was 15.7% 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 used as a common measure by banks as a comparable metric to understand the Company’s expense structure relative to its 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.
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
Return on average assets before income tax provision, provision for loan losses and goodwill impairment 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 the “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 8 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 2021 third quarter results on Wednesday, October 20, 2021, 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, October 20, 2021, 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. 7698604.
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 October 27, 2021, accessible at (855) 859-2056 with conference ID no. 7698604 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.
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
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, 2021, 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
[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. 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 - 10/19/2021
TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
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Three months ended
September 30, |
|
|
Nine months ended
September 30, |
|
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
37,581 |
|
|
$ |
32,278 |
|
|
$ |
102,392 |
|
|
$ |
99,281 |
|
|
Securities, taxable |
|
|
3,920 |
|
|
|
3,476 |
|
|
|
11,242 |
|
|
|
12,113 |
|
|
Securities, nontaxable |
|
|
655 |
|
|
|
923 |
|
|
|
2,096 |
|
|
|
2,769 |
|
|
Federal funds sold and other |
|
|
290 |
|
|
|
405 |
|
|
|
846 |
|
|
|
1,409 |
|
|
Total interest and dividend income |
|
|
42,446 |
|
|
|
37,082 |
|
|
|
116,576 |
|
|
|
115,572 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,881 |
|
|
|
3,064 |
|
|
|
6,316 |
|
|
|
13,827 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
24 |
|
|
|
25 |
|
|
|
72 |
|
|
|
80 |
|
|
Federal Home Loan Bank advances |
|
|
10 |
|
|
|
471 |
|
|
|
155 |
|
|
|
2,198 |
|
|
Federal Reserve Bank discount window |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6 |
|
|
Bank stock loan |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
415 |
|
|
Subordinated debt |
|
|
1,556 |
|
|
|
1,415 |
|
|
|
4,669 |
|
|
|
1,953 |
|
|
Total interest expense |
|
|
3,471 |
|
|
|
4,975 |
|
|
|
11,212 |
|
|
|
18,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
38,975 |
|
|
|
32,107 |
|
|
|
105,364 |
|
|
|
97,093 |
|
|
Provision (reversal) for credit losses |
|
|
1,058 |
|
|
|
815 |
|
|
|
(6,355 |
) |
|
|
23,255 |
|
|
Net interest income after provision (reversal) for credit losses |
|
|
37,917 |
|
|
|
31,292 |
|
|
|
111,719 |
|
|
|
73,838 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,360 |
|
|
|
1,706 |
|
|
|
6,125 |
|
|
|
5,097 |
|
|
Debit card income |
|
|
2,574 |
|
|
|
2,491 |
|
|
|
7,603 |
|
|
|
6,735 |
|
|
Mortgage banking |
|
|
801 |
|
|
|
877 |
|
|
|
2,584 |
|
|
|
2,298 |
|
|
Increase in value of bank-owned life insurance |
|
|
1,169 |
|
|
|
489 |
|
|
|
2,446 |
|
|
|
1,452 |
|
|
Net gain on acquisition |
|
|
— |
|
|
|
— |
|
|
|
585 |
|
|
|
— |
|
|
Net gains (losses) from securities transactions |
|
|
381 |
|
|
— |
|
|
|
398 |
|
|
|
12 |
|
|
Other |
|
|
546 |
|
|
|
922 |
|
|
|
3,902 |
|
|
|
1,929 |
|
|
Total non-interest income |
|
|
7,831 |
|
|
|
6,485 |
|
|
|
23,643 |
|
|
|
17,523 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
13,588 |
|
|
|
13,877 |
|
|
|
39,079 |
|
|
|
40,076 |
|
|
Net occupancy and equipment |
|
|
2,475 |
|
|
|
2,224 |
|
|
|
7,170 |
|
|
|
6,578 |
|
|
Data processing |
|
|
3,257 |
|
|
|
2,817 |
|
|
|
9,394 |
|
|
|
8,243 |
|
|
Professional fees |
|
|
1,076 |
|
|
|
877 |
|
|
|
3,148 |
|
|
|
3,187 |
|
|
Advertising and business development |
|
|
760 |
|
|
|
598 |
|
|
|
2,241 |
|
|
|
1,697 |
|
|
Telecommunications |
|
|
439 |
|
|
|
486 |
|
|
|
1,531 |
|
|
|
1,363 |
|
|
FDIC insurance |
|
|
465 |
|
|
|
360 |
|
|
|
1,305 |
|
|
|
1,291 |
|
|
Courier and postage |
|
|
344 |
|
|
|
366 |
|
|
|
1,040 |
|
|
|
1,103 |
|
|
Free nationwide ATM cost |
|
|
519 |
|
|
|
439 |
|
|
|
1,504 |
|
|
|
1,186 |
|
|
Amortization of core deposit intangibles |
|
|
1,030 |
|
|
|
1,030 |
|
|
|
3,094 |
|
|
|
2,806 |
|
|
Loan expense |
|
|
207 |
|
|
|
107 |
|
|
|
626 |
|
|
|
628 |
|
|
Other real estate owned |
|
|
(342 |
) |
|
|
133 |
|
|
|
(805 |
) |
|
|
710 |
|
|
Loss on debt extinguishment |
|
|
372 |
|
|
|
— |
|
|
|
372 |
|
|
|
— |
|
|
Merger expenses |
|
|
4,015 |
|
|
|
— |
|
|
|
4,627 |
|
|
|
— |
|
|
Goodwill impairment |
|
|
— |
|
|
|
104,831 |
|
|
|
— |
|
|
|
104,831 |
|
|
Other |
|
|
2,484 |
|
|
|
2,690 |
|
|
|
7,050 |
|
|
|
6,831 |
|
|
Total non-interest expense |
|
|
30,689 |
|
|
|
130,835 |
|
|
|
81,376 |
|
|
|
180,530 |
|
|
Income (loss) before income tax |
|
|
15,059 |
|
|
|
(93,058 |
) |
|
|
53,986 |
|
|
|
(89,169 |
) |
|
Provision for income taxes |
|
|
3,286 |
|
|
|
(2,653 |
) |
|
|
11,972 |
|
|
|
(1,711 |
) |
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
11,773 |
|
|
$ |
(90,405 |
) |
|
$ |
42,014 |
|
|
$ |
(87,458 |
) |
|
Basic earnings (loss) per share |
|
$ |
0.82 |
|
|
$ |
(6.01 |
) |
|
$ |
2.92 |
|
|
$ |
(5.75 |
) |
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
|
Diluted earnings (loss) per share |
|
$ |
0.80 |
|
|
$ |
(6.01 |
) |
|
$ |
2.86 |
|
|
$ |
(5.75 |
) |
|
Weighted average common shares |
|
|
14,384,302 |
|
|
|
15,040,407 |
|
|
|
14,397,146 |
|
|
|
15,211,901 |
|
|
Weighted average diluted common shares |
|
|
14,669,312 |
|
|
|
15,040,407 |
|
|
|
14,688,092 |
|
|
|
15,211,901 |
|
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
As of and for the three months ended |
|
|
|
|
September 30,
2021 |
|
|
June 30,
2021 |
|
|
March 31,
2021 |
|
|
December 31,
2020 |
|
|
September 30,
2020 |
|
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
37,581 |
|
|
$ |
33,810 |
|
|
$ |
31,001 |
|
|
$ |
35,383 |
|
|
$ |
32,278 |
|
|
Securities, taxable |
|
|
3,920 |
|
|
|
3,523 |
|
|
|
3,799 |
|
|
|
3,408 |
|
|
|
3,476 |
|
|
Securities, nontaxable |
|
|
655 |
|
|
|
717 |
|
|
|
724 |
|
|
|
913 |
|
|
|
923 |
|
|
Federal funds sold and other |
|
|
290 |
|
|
|
268 |
|
|
|
288 |
|
|
|
285 |
|
|
|
405 |
|
|
Total interest and dividend income |
|
|
42,446 |
|
|
|
38,318 |
|
|
|
35,812 |
|
|
|
39,989 |
|
|
|
37,082 |
|
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,881 |
|
|
|
2,025 |
|
|
|
2,410 |
|
|
|
2,755 |
|
|
|
3,064 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
24 |
|
|
|
26 |
|
|
|
22 |
|
|
|
25 |
|
|
|
25 |
|
|
Federal Home Loan Bank advances |
|
|
10 |
|
|
|
80 |
|
|
|
65 |
|
|
|
94 |
|
|
|
471 |
|
|
Subordinated debt |
|
|
1,556 |
|
|
|
1,557 |
|
|
|
1,556 |
|
|
|
1,556 |
|
|
|
1,415 |
|
|
Total interest expense |
|
|
3,471 |
|
|
|
3,688 |
|
|
|
4,053 |
|
|
|
4,430 |
|
|
|
4,975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
38,975 |
|
|
|
34,630 |
|
|
|
31,759 |
|
|
|
35,559 |
|
|
|
32,107 |
|
|
Provision (reversal) for credit losses |
|
|
1,058 |
|
|
|
(1,657 |
) |
|
|
(5,756 |
) |
|
|
1,000 |
|
|
|
815 |
|
|
Net interest income after provision (reversal) for credit losses |
|
|
37,917 |
|
|
|
36,287 |
|
|
|
37,515 |
|
|
|
34,559 |
|
|
|
31,292 |
|
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,360 |
|
|
|
2,169 |
|
|
|
1,596 |
|
|
|
1,759 |
|
|
|
1,706 |
|
|
Debit card income |
|
|
2,574 |
|
|
|
2,679 |
|
|
|
2,350 |
|
|
|
2,401 |
|
|
|
2,491 |
|
|
Mortgage banking |
|
|
801 |
|
|
|
848 |
|
|
|
935 |
|
|
|
855 |
|
|
|
877 |
|
|
Increase in value of bank-owned life insurance |
|
|
1,169 |
|
|
|
676 |
|
|
|
601 |
|
|
|
489 |
|
|
|
489 |
|
|
Net gain on acquisition |
|
|
— |
|
|
|
663 |
|
|
|
(78 |
) |
|
|
2,145 |
|
|
|
— |
|
|
Net gains (losses) from securities transactions |
|
|
381 |
|
|
|
— |
|
|
|
17 |
|
|
|
(1 |
) |
|
|
— |
|
|
Other |
|
|
546 |
|
|
|
2,065 |
|
|
|
1,291 |
|
|
|
852 |
|
|
|
922 |
|
|
Total non-interest income |
|
|
7,831 |
|
|
|
9,100 |
|
|
|
6,712 |
|
|
|
8,500 |
|
|
|
6,485 |
|
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
13,588 |
|
|
|
12,769 |
|
|
|
12,722 |
|
|
|
14,053 |
|
|
|
13,877 |
|
|
Net occupancy and equipment |
|
|
2,475 |
|
|
|
2,327 |
|
|
|
2,368 |
|
|
|
2,206 |
|
|
|
2,224 |
|
|
Data processing |
|
|
3,257 |
|
|
|
3,474 |
|
|
|
2,663 |
|
|
|
2,748 |
|
|
|
2,817 |
|
|
Professional fees |
|
|
1,076 |
|
|
|
999 |
|
|
|
1,073 |
|
|
|
1,095 |
|
|
|
877 |
|
|
Advertising and business development |
|
|
760 |
|
|
|
799 |
|
|
|
682 |
|
|
|
801 |
|
|
|
598 |
|
|
Telecommunications |
|
|
439 |
|
|
|
512 |
|
|
|
580 |
|
|
|
510 |
|
|
|
486 |
|
|
FDIC insurance |
|
|
465 |
|
|
|
425 |
|
|
|
415 |
|
|
|
797 |
|
|
|
360 |
|
|
Courier and postage |
|
|
344 |
|
|
|
327 |
|
|
|
369 |
|
|
|
338 |
|
|
|
366 |
|
|
Free nationwide ATM cost |
|
|
519 |
|
|
|
513 |
|
|
|
472 |
|
|
|
423 |
|
|
|
439 |
|
|
Amortization of core deposit intangibles |
|
|
1,030 |
|
|
|
1,030 |
|
|
|
1,034 |
|
|
|
1,044 |
|
|
|
1,030 |
|
|
Loan expense |
|
|
207 |
|
|
|
181 |
|
|
|
238 |
|
|
|
161 |
|
|
|
107 |
|
|
Other real estate owned |
|
|
(342 |
) |
|
|
(468 |
) |
|
|
5 |
|
|
|
1,600 |
|
|
|
133 |
|
|
Loss on debt extinguishment |
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Merger expenses |
|
|
4,015 |
|
|
|
460 |
|
|
|
152 |
|
|
|
299 |
|
|
|
— |
|
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,831 |
|
|
Other |
|
|
2,484 |
|
|
|
2,458 |
|
|
|
2,108 |
|
|
|
2,385 |
|
|
|
2,690 |
|
|
Total non-interest expense |
|
|
30,689 |
|
|
|
25,806 |
|
|
|
24,881 |
|
|
|
28,460 |
|
|
|
130,835 |
|
|
Income (loss) before income tax |
|
|
15,059 |
|
|
|
19,581 |
|
|
|
19,346 |
|
|
|
14,599 |
|
|
|
(93,058 |
) |
|
Provision for income taxes (benefit) |
|
|
3,286 |
|
|
|
4,415 |
|
|
|
4,271 |
|
|
|
2,111 |
|
|
|
(2,653 |
) |
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
$ |
15,075 |
|
|
$ |
12,488 |
|
|
$ |
(90,405 |
) |
|
Basic earnings (loss) per share |
|
$ |
0.82 |
|
|
$ |
1.06 |
|
|
$ |
1.04 |
|
|
$ |
0.85 |
|
|
$ |
(6.01 |
) |
|
Diluted earnings (loss) per share |
|
$ |
0.80 |
|
|
$ |
1.03 |
|
|
$ |
1.02 |
|
|
$ |
0.84 |
|
|
$ |
(6.01 |
) |
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
|
Weighted average common shares |
|
|
14,384,302 |
|
|
|
14,356,958 |
|
|
|
14,464,291 |
|
|
|
14,760,810 |
|
|
|
15,040,407 |
|
|
Weighted average diluted common shares |
|
|
14,669,312 |
|
|
|
14,674,838 |
|
|
|
14,734,083 |
|
|
|
14,934,058 |
|
|
|
15,040,407 |
|
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
|
|
|
September 30,
2021 |
|
|
June 30,
2021 |
|
|
March 31,
2021 |
|
|
December 31,
2020 |
|
|
September 30,
2020 |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
141,645 |
|
|
$ |
138,869 |
|
|
$ |
136,190 |
|
|
$ |
280,150 |
|
|
$ |
65,534 |
|
|
Federal funds sold |
|
|
673 |
|
|
|
452 |
|
|
|
498 |
|
|
|
548 |
|
|
|
305 |
|
|
Cash and cash equivalents |
|
|
142,318 |
|
|
|
139,321 |
|
|
|
136,688 |
|
|
|
280,698 |
|
|
|
65,839 |
|
|
Interest-bearing time deposits in other banks |
|
|
— |
|
|
|
— |
|
|
|
249 |
|
|
|
249 |
|
|
|
499 |
|
|
Available-for-sale securities |
|
|
1,157,423 |
|
|
|
1,041,613 |
|
|
|
998,100 |
|
|
|
871,827 |
|
|
|
798,576 |
|
|
Loans held for sale |
|
|
4,108 |
|
|
|
6,183 |
|
|
|
8,609 |
|
|
|
12,394 |
|
|
|
9,053 |
|
|
Loans, net of allowance for credit losses(1) |
|
|
2,633,148 |
|
|
|
2,763,227 |
|
|
|
2,740,215 |
|
|
|
2,557,987 |
|
|
|
2,691,626 |
|
|
Other real estate owned, net |
|
|
10,267 |
|
|
|
10,861 |
|
|
|
10,559 |
|
|
|
11,733 |
|
|
|
8,727 |
|
|
Premises and equipment, net |
|
|
90,727 |
|
|
|
90,876 |
|
|
|
90,322 |
|
|
|
89,412 |
|
|
|
86,087 |
|
|
Bank-owned life insurance |
|
|
103,431 |
|
|
|
103,321 |
|
|
|
102,645 |
|
|
|
77,044 |
|
|
|
76,555 |
|
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
|
14,540 |
|
|
|
18,454 |
|
|
|
15,174 |
|
|
|
16,415 |
|
|
|
32,545 |
|
|
Interest receivable |
|
|
15,519 |
|
|
|
15,064 |
|
|
|
16,655 |
|
|
|
15,831 |
|
|
|
18,110 |
|
|
Goodwill |
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Core deposit intangibles, net |
|
|
12,963 |
|
|
|
13,993 |
|
|
|
15,023 |
|
|
|
16,057 |
|
|
|
17,101 |
|
|
Other |
|
|
47,223 |
|
|
|
33,702 |
|
|
|
30,344 |
|
|
|
32,108 |
|
|
|
29,252 |
|
|
Total assets |
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
$ |
4,196,184 |
|
|
$ |
4,013,356 |
|
|
$ |
3,865,571 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
984,436 |
|
|
$ |
992,565 |
|
|
$ |
972,364 |
|
|
$ |
791,639 |
|
|
$ |
693,967 |
|
|
Total non-interest-bearing deposits |
|
|
984,436 |
|
|
|
992,565 |
|
|
|
972,364 |
|
|
|
791,639 |
|
|
|
693,967 |
|
|
Savings, NOW and money market |
|
|
2,092,849 |
|
|
|
2,035,496 |
|
|
|
2,074,261 |
|
|
|
2,029,097 |
|
|
|
1,816,307 |
|
|
Time |
|
|
585,492 |
|
|
|
659,494 |
|
|
|
587,905 |
|
|
|
626,854 |
|
|
|
623,344 |
|
|
Total interest-bearing deposits |
|
|
2,678,341 |
|
|
|
2,694,990 |
|
|
|
2,662,166 |
|
|
|
2,655,951 |
|
|
|
2,439,651 |
|
|
Total deposits |
|
|
3,662,777 |
|
|
|
3,687,555 |
|
|
|
3,634,530 |
|
|
|
3,447,590 |
|
|
|
3,133,618 |
|
|
Federal funds purchased and retail repurchase agreements |
|
|
39,137 |
|
|
|
47,184 |
|
|
|
40,339 |
|
|
|
36,029 |
|
|
|
46,295 |
|
|
Federal Home Loan Bank advances |
|
|
— |
|
|
|
9,208 |
|
|
|
9,926 |
|
|
|
10,144 |
|
|
|
167,862 |
|
|
Subordinated debt |
|
|
88,030 |
|
|
|
87,908 |
|
|
|
87,788 |
|
|
|
87,684 |
|
|
|
87,537 |
|
|
Contractual obligations |
|
|
18,771 |
|
|
|
4,469 |
|
|
|
4,856 |
|
|
|
5,189 |
|
|
|
5,478 |
|
|
Interest payable and other liabilities |
|
|
36,804 |
|
|
|
18,897 |
|
|
|
20,930 |
|
|
|
19,071 |
|
|
|
22,609 |
|
|
Total liabilities |
|
|
3,845,519 |
|
|
|
3,855,221 |
|
|
|
3,798,369 |
|
|
|
3,605,707 |
|
|
|
3,463,399 |
|
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
178 |
|
|
|
176 |
|
|
|
175 |
|
|
|
174 |
|
|
|
174 |
|
|
Additional paid-in capital |
|
|
392,321 |
|
|
|
389,394 |
|
|
|
387,939 |
|
|
|
386,820 |
|
|
|
386,017 |
|
|
Retained earnings |
|
|
79,226 |
|
|
|
68,625 |
|
|
|
53,459 |
|
|
|
50,787 |
|
|
|
38,299 |
|
|
Accumulated other comprehensive income, net of tax |
|
|
9,475 |
|
|
|
13,450 |
|
|
|
12,019 |
|
|
|
19,781 |
|
|
|
21,074 |
|
|
Employee stock loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(43 |
) |
|
|
(43 |
) |
|
Treasury stock |
|
|
(63,451 |
) |
|
|
(58,650 |
) |
|
|
(55,777 |
) |
|
|
(49,870 |
) |
|
|
(43,349 |
) |
|
Total stockholders’ equity |
|
|
417,749 |
|
|
|
412,995 |
|
|
|
397,815 |
|
|
|
407,649 |
|
|
|
402,172 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
$ |
4,196,184 |
|
|
$ |
4,013,356 |
|
|
$ |
3,865,571 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Allowance for credit losses |
|
$ |
52,763 |
|
|
$ |
51,834 |
|
|
$ |
55,525 |
|
|
$ |
33,709 |
|
|
$ |
34,087 |
|
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
As of and for the three months ended |
|
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
Loans Held For Investment by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,308,707 |
|
|
$ |
1,261,214 |
|
|
$ |
1,218,537 |
|
|
$ |
1,188,696 |
|
|
$ |
1,188,329 |
|
|
Commercial and industrial |
|
|
569,513 |
|
|
|
732,126 |
|
|
|
820,736 |
|
|
|
734,495 |
|
|
|
857,244 |
|
|
Residential real estate |
|
|
490,633 |
|
|
|
503,110 |
|
|
|
438,503 |
|
|
|
381,958 |
|
|
|
402,242 |
|
|
Agricultural real estate |
|
|
138,793 |
|
|
|
129,020 |
|
|
|
134,944 |
|
|
|
133,693 |
|
|
|
127,349 |
|
|
Agricultural |
|
|
93,767 |
|
|
|
97,912 |
|
|
|
93,764 |
|
|
|
94,322 |
|
|
|
83,084 |
|
|
Consumer |
|
|
84,498 |
|
|
|
91,679 |
|
|
|
89,256 |
|
|
|
58,532 |
|
|
|
67,465 |
|
|
Total loans held-for-investment |
|
|
2,685,911 |
|
|
|
2,815,061 |
|
|
|
2,795,740 |
|
|
|
2,591,696 |
|
|
|
2,725,713 |
|
|
Allowance for credit losses |
|
|
(52,763 |
) |
|
|
(51,834 |
) |
|
|
(55,525 |
) |
|
|
(33,709 |
) |
|
|
(34,087 |
) |
|
Net loans held for investment |
|
$ |
2,633,148 |
|
|
$ |
2,763,227 |
|
|
$ |
2,740,215 |
|
|
$ |
2,557,987 |
|
|
$ |
2,691,626 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total loans |
|
|
1.96 |
% |
|
|
1.84 |
% |
|
|
1.99 |
% |
|
|
1.30 |
% |
|
|
1.25 |
% |
|
Past due or nonaccrual loans to total loans |
|
|
2.78 |
% |
|
|
2.09 |
% |
|
|
2.30 |
% |
|
|
1.99 |
% |
|
|
2.12 |
% |
|
Nonperforming assets to total assets |
|
|
1.74 |
% |
|
|
1.56 |
% |
|
|
1.67 |
% |
|
|
1.36 |
% |
|
|
1.55 |
% |
|
Nonperforming assets to total loans plus other
real estate owned |
|
|
2.76 |
% |
|
|
2.36 |
% |
|
|
2.50 |
% |
|
|
2.10 |
% |
|
|
2.19 |
% |
|
Classified assets to bank total regulatory capital |
|
|
24.25 |
% |
|
|
23.20 |
% |
|
|
26.45 |
% |
|
|
25.50 |
% |
|
|
18.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balance Sheet Data (QTD Average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
1,061,178 |
|
|
$ |
986,986 |
|
|
$ |
947,453 |
|
|
$ |
814,114 |
|
|
$ |
802,525 |
|
|
Total gross loans receivable |
|
|
2,748,202 |
|
|
|
2,853,145 |
|
|
|
2,736,918 |
|
|
|
2,692,223 |
|
|
|
2,758,680 |
|
|
Interest-earning assets |
|
|
4,005,509 |
|
|
|
3,964,633 |
|
|
|
3,891,140 |
|
|
|
3,647,730 |
|
|
|
3,679,168 |
|
|
Total assets |
|
|
4,275,298 |
|
|
|
4,231,439 |
|
|
|
4,143,752 |
|
|
|
3,910,628 |
|
|
|
4,041,187 |
|
|
Interest-bearing deposits |
|
|
2,702,040 |
|
|
|
2,656,052 |
|
|
|
2,690,159 |
|
|
|
2,551,219 |
|
|
|
2,430,407 |
|
|
Borrowings |
|
|
132,581 |
|
|
|
171,658 |
|
|
|
139,360 |
|
|
|
172,730 |
|
|
|
377,158 |
|
|
Total interest-bearing liabilities |
|
|
2,834,621 |
|
|
|
2,827,710 |
|
|
|
2,829,519 |
|
|
|
2,723,949 |
|
|
|
2,807,565 |
|
|
Total deposits |
|
|
3,686,169 |
|
|
|
3,624,950 |
|
|
|
3,577,625 |
|
|
|
2,960,791 |
|
|
|
3,145,810 |
|
|
Total liabilities |
|
|
3,852,419 |
|
|
|
3,827,400 |
|
|
|
3,748,114 |
|
|
|
3,501,056 |
|
|
|
3,558,099 |
|
|
Total stockholders' equity |
|
|
422,879 |
|
|
|
404,039 |
|
|
|
395,638 |
|
|
|
409,572 |
|
|
|
483,088 |
|
|
Tangible common equity* |
|
|
376,544 |
|
|
|
356,705 |
|
|
|
347,262 |
|
|
|
355,025 |
|
|
|
329,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) annualized |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
|
1.48 |
% |
|
|
1.27 |
% |
|
|
(8.90 |
)% |
|
Return on average assets before income tax,
provision for loan losses and goodwill
impairment* |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
|
1.33 |
% |
|
|
1.59 |
% |
|
|
1.24 |
% |
|
Return on average equity (ROAE) annualized |
|
|
11.05 |
% |
|
|
15.06 |
% |
|
|
15.45 |
% |
|
|
12.13 |
% |
|
|
(74.45 |
)% |
|
Return on average equity before income tax,
provision for loan losses and goodwill
impairment* |
|
|
15.12 |
% |
|
|
17.79 |
% |
|
|
13.93 |
% |
|
|
15.15 |
% |
|
|
10.37 |
% |
|
Return on average tangible common equity
(ROATCE) annualized* |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
18.57 |
% |
|
|
14.93 |
% |
|
|
(108.31 |
)% |
|
Return on average tangible common equity
adjusted for goodwill impairment* |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
18.57 |
% |
|
|
14.93 |
% |
|
|
12.01 |
% |
|
Yield on loans annualized |
|
|
5.43 |
% |
|
|
4.75 |
% |
|
|
4.59 |
% |
|
|
5.23 |
% |
|
|
4.65 |
% |
|
Cost of interest-bearing deposits annualized |
|
|
0.28 |
% |
|
|
0.31 |
% |
|
|
0.36 |
% |
|
|
0.43 |
% |
|
|
0.50 |
% |
|
Cost of total deposits annualized |
|
|
0.20 |
% |
|
|
0.22 |
% |
|
|
0.27 |
% |
|
|
0.37 |
% |
|
|
0.39 |
% |
|
Net interest margin annualized |
|
|
3.86 |
% |
|
|
3.50 |
% |
|
|
3.31 |
% |
|
|
3.88 |
% |
|
|
3.47 |
% |
|
Efficiency ratio* |
|
|
56.65 |
% |
|
|
58.85 |
% |
|
|
64.18 |
% |
|
|
67.19 |
% |
|
|
67.38 |
% |
|
Non-interest income / average assets |
|
|
0.73 |
% |
|
|
0.86 |
% |
|
|
0.66 |
% |
|
|
0.86 |
% |
|
|
0.64 |
% |
|
Non-interest expense / average assets |
|
|
2.85 |
% |
|
|
2.45 |
% |
|
|
2.44 |
% |
|
|
2.90 |
% |
|
|
12.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
|
9.02 |
% |
|
|
8.88 |
% |
|
|
8.73 |
% |
|
|
9.30 |
% |
|
|
8.76 |
% |
|
Common Equity Tier 1 Capital Ratio |
|
|
12.39 |
% |
|
|
12.41 |
% |
|
|
12.53 |
% |
|
|
12.82 |
% |
|
|
12.76 |
% |
|
Tier 1 Risk Based Capital Ratio |
|
|
12.90 |
% |
|
|
12.93 |
% |
|
|
13.08 |
% |
|
|
13.37 |
% |
|
|
13.32 |
% |
|
Total Risk Based Capital Ratio |
|
|
16.63 |
% |
|
|
16.73 |
% |
|
|
17.02 |
% |
|
|
17.35 |
% |
|
|
17.35 |
% |
|
Total stockholders' equity to total assets |
|
|
9.80 |
% |
|
|
9.68 |
% |
|
|
9.48 |
% |
|
|
10.16 |
% |
|
|
10.40 |
% |
|
Tangible common equity to tangible assets* |
|
|
8.82 |
% |
|
|
8.68 |
% |
|
|
8.44 |
% |
|
|
9.05 |
% |
|
|
9.23 |
% |
|
Book value per common share |
|
$ |
29.08 |
|
|
$ |
28.76 |
|
|
$ |
27.66 |
|
|
$ |
28.04 |
|
|
$ |
27.08 |
|
|
Tangible book value per common share* |
|
$ |
25.90 |
|
|
$ |
25.51 |
|
|
$ |
24.34 |
|
|
$ |
24.68 |
|
|
$ |
23.72 |
|
|
Tangible book value per diluted common share* |
|
$ |
25.42 |
|
|
$ |
24.98 |
|
|
$ |
23.87 |
|
|
$ |
24.32 |
|
|
$ |
23.57 |
|
* 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 - 10/19/2021
TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the nine months ended |
|
|
For the nine months ended |
|
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
|
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 |
$ |
752,795 |
|
|
$ |
34,609 |
|
|
|
6.15 |
% |
|
$ |
757,773 |
|
|
$ |
26,789 |
|
|
|
4.72 |
% |
|
Commercial real estate |
|
990,803 |
|
|
|
34,943 |
|
|
|
4.72 |
% |
|
|
942,478 |
|
|
|
36,533 |
|
|
|
5.18 |
% |
|
Real estate construction |
|
264,344 |
|
|
|
7,195 |
|
|
|
3.64 |
% |
|
|
245,167 |
|
|
|
8,644 |
|
|
|
4.71 |
% |
|
Residential real estate |
|
457,761 |
|
|
|
14,167 |
|
|
|
4.14 |
% |
|
|
464,340 |
|
|
|
14,528 |
|
|
|
4.18 |
% |
|
Agricultural real estate |
|
135,795 |
|
|
|
5,203 |
|
|
|
5.12 |
% |
|
|
133,302 |
|
|
|
5,574 |
|
|
|
5.59 |
% |
|
Agricultural |
|
93,680 |
|
|
|
3,432 |
|
|
|
4.90 |
% |
|
|
86,873 |
|
|
|
3,752 |
|
|
|
5.77 |
% |
|
Consumer |
|
84,285 |
|
|
|
2,843 |
|
|
|
4.51 |
% |
|
|
67,255 |
|
|
|
3,461 |
|
|
|
6.87 |
% |
|
Total loans |
|
2,779,463 |
|
|
|
102,392 |
|
|
|
3.94 |
% |
|
|
2,697,188 |
|
|
|
99,281 |
|
|
|
4.92 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
898,461 |
|
|
|
11,242 |
|
|
|
1.67 |
% |
|
|
737,009 |
|
|
|
12,113 |
|
|
|
2.20 |
% |
|
Nontaxable securities |
|
100,495 |
|
|
|
2,096 |
|
|
|
2.79 |
% |
|
|
125,352 |
|
|
|
2,769 |
|
|
|
2.95 |
% |
|
Total securities |
|
998,956 |
|
|
|
13,338 |
|
|
|
1.79 |
% |
|
|
862,361 |
|
|
|
14,882 |
|
|
|
2.31 |
% |
|
Federal funds sold and other |
|
175,761 |
|
|
|
846 |
|
|
|
0.64 |
% |
|
|
102,202 |
|
|
|
1,409 |
|
|
|
1.84 |
% |
|
Total interest-earning assets |
$ |
3,954,180 |
|
|
|
116,576 |
|
|
|
3.94 |
% |
|
$ |
3,661,751 |
|
|
|
115,572 |
|
|
|
4.22 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
2,076,643 |
|
|
|
2,728 |
|
|
|
0.18 |
% |
|
$ |
1,754,759 |
|
|
|
4,923 |
|
|
|
0.37 |
% |
|
Time deposits |
|
606,151 |
|
|
|
3,588 |
|
|
|
0.79 |
% |
|
|
728,083 |
|
|
|
8,904 |
|
|
|
1.63 |
% |
|
Total interest-bearing deposits |
|
2,682,794 |
|
|
|
6,316 |
|
|
|
0.31 |
% |
|
|
2,482,842 |
|
|
|
13,827 |
|
|
|
0.74 |
% |
|
FHLB advances |
|
16,325 |
|
|
|
155 |
|
|
|
1.27 |
% |
|
|
271,548 |
|
|
|
2,198 |
|
|
|
0.24 |
% |
|
Other borrowings |
|
131,516 |
|
|
|
4,741 |
|
|
|
4.82 |
% |
|
|
100,865 |
|
|
|
2,454 |
|
|
|
3.25 |
% |
|
Total interest-bearing liabilities |
$ |
2,830,635 |
|
|
|
11,212 |
|
|
|
0.53 |
% |
|
$ |
2,855,255 |
|
|
|
18,479 |
|
|
|
0.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
105,364 |
|
|
|
|
|
|
|
|
|
|
$ |
97,093 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.41 |
% |
|
|
|
|
|
|
|
|
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
3.54 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 - 10/19/2021
TABLE 6. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the three months ended |
|
|
For the three months ended |
|
|
|
September 30, 2021 |
|
|
September 30, 2020 |
|
|
|
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 |
$ |
630,622 |
|
|
$ |
13,646 |
|
|
|
8.59 |
% |
|
$ |
848,096 |
|
|
$ |
8,400 |
|
|
|
3.94 |
% |
|
Commercial real estate |
|
1,009,141 |
|
|
|
12,072 |
|
|
|
4.75 |
% |
|
|
979,775 |
|
|
|
12,886 |
|
|
|
5.23 |
% |
|
Real estate construction |
|
283,106 |
|
|
|
2,664 |
|
|
|
3.73 |
% |
|
|
214,775 |
|
|
|
2,233 |
|
|
|
4.14 |
% |
|
Residential real estate |
|
512,135 |
|
|
|
5,073 |
|
|
|
3.93 |
% |
|
|
429,965 |
|
|
|
4,733 |
|
|
|
4.38 |
% |
|
Agricultural real estate |
|
134,673 |
|
|
|
1,819 |
|
|
|
5.36 |
% |
|
|
131,725 |
|
|
|
1,718 |
|
|
|
5.19 |
% |
|
Agricultural |
|
91,878 |
|
|
|
1,370 |
|
|
|
5.92 |
% |
|
|
84,859 |
|
|
|
1,204 |
|
|
|
5.65 |
% |
|
Consumer |
|
86,647 |
|
|
|
937 |
|
|
|
4.29 |
% |
|
|
69,485 |
|
|
|
1,104 |
|
|
|
6.32 |
% |
|
Total loans |
|
2,748,202 |
|
|
|
37,581 |
|
|
|
5.43 |
% |
|
|
2,758,680 |
|
|
|
32,278 |
|
|
|
4.65 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
966,651 |
|
|
|
3,920 |
|
|
|
1.61 |
% |
|
|
683,630 |
|
|
|
3,476 |
|
|
|
2.02 |
% |
|
Nontaxable securities |
|
94,527 |
|
|
|
655 |
|
|
|
2.75 |
% |
|
|
118,895 |
|
|
|
923 |
|
|
|
3.09 |
% |
|
Total securities |
|
1,061,178 |
|
|
|
4,575 |
|
|
|
1.71 |
% |
|
|
802,525 |
|
|
|
4,399 |
|
|
|
2.18 |
% |
|
Federal funds sold and other |
|
196,129 |
|
|
|
290 |
|
|
|
0.59 |
% |
|
|
117,963 |
|
|
|
405 |
|
|
|
1.36 |
% |
|
Total interest-earning assets |
$ |
4,005,509 |
|
|
|
42,446 |
|
|
|
4.20 |
% |
|
$ |
3,679,168 |
|
|
|
37,082 |
|
|
|
4.01 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
2,082,515 |
|
|
|
862 |
|
|
|
0.16 |
% |
|
$ |
1,784,891 |
|
|
|
875 |
|
|
|
0.19 |
% |
|
Time deposits |
|
619,525 |
|
|
|
1,019 |
|
|
|
0.65 |
% |
|
|
645,516 |
|
|
|
2,189 |
|
|
|
1.35 |
% |
|
Total interest-bearing deposits |
|
2,702,040 |
|
|
|
1,881 |
|
|
|
0.28 |
% |
|
|
2,430,407 |
|
|
|
3,064 |
|
|
|
0.50 |
% |
|
FHLB advances |
|
1,401 |
|
|
|
10 |
|
|
|
2.78 |
% |
|
|
248,437 |
|
|
|
471 |
|
|
|
0.75 |
% |
|
Other borrowings |
|
131,180 |
|
|
|
1,580 |
|
|
|
4.78 |
% |
|
|
128,721 |
|
|
|
1,440 |
|
|
|
4.45 |
% |
|
Total interest-bearing liabilities |
$ |
2,834,621 |
|
|
|
3,471 |
|
|
|
0.49 |
% |
|
$ |
2,807,565 |
|
|
|
4,975 |
|
|
|
0.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
38,975 |
|
|
|
|
|
|
|
|
|
|
$ |
32,107 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.71 |
% |
|
|
|
|
|
|
|
|
|
|
3.31 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
|
|
3.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 - 10/19/2021
TABLE 7. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
|
|
For the three months ended |
|
|
For the three months ended |
|
|
|
September 30, 2021 |
|
|
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 |
$ |
630,622 |
|
|
$ |
13,646 |
|
|
|
8.59 |
% |
|
$ |
826,647 |
|
|
$ |
11,729 |
|
|
|
5.69 |
% |
|
Commercial real estate |
|
1,009,141 |
|
|
|
12,072 |
|
|
|
4.75 |
% |
|
|
991,033 |
|
|
|
11,433 |
|
|
|
4.63 |
% |
|
Real estate construction |
|
283,106 |
|
|
|
2,664 |
|
|
|
3.73 |
% |
|
|
253,947 |
|
|
|
2,352 |
|
|
|
3.71 |
% |
|
Residential real estate |
|
512,135 |
|
|
|
5,073 |
|
|
|
3.93 |
% |
|
|
465,525 |
|
|
|
4,642 |
|
|
|
4.00 |
% |
|
Agricultural real estate |
|
134,673 |
|
|
|
1,819 |
|
|
|
5.36 |
% |
|
|
131,906 |
|
|
|
1,687 |
|
|
|
5.13 |
% |
|
Agricultural |
|
91,878 |
|
|
|
1,370 |
|
|
|
5.92 |
% |
|
|
94,407 |
|
|
|
1,024 |
|
|
|
4.35 |
% |
|
Consumer |
|
86,647 |
|
|
|
937 |
|
|
|
4.29 |
% |
|
|
89,680 |
|
|
|
943 |
|
|
|
4.22 |
% |
|
Total loans |
|
2,748,202 |
|
|
|
37,581 |
|
|
|
5.43 |
% |
|
|
2,853,145 |
|
|
|
33,810 |
|
|
|
4.75 |
% |
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
966,651 |
|
|
|
3,920 |
|
|
|
1.61 |
% |
|
|
887,983 |
|
|
|
3,523 |
|
|
|
1.59 |
% |
|
Nontaxable securities |
|
94,527 |
|
|
|
655 |
|
|
|
2.75 |
% |
|
|
99,003 |
|
|
|
717 |
|
|
|
2.90 |
% |
|
Total securities |
|
1,061,178 |
|
|
|
4,575 |
|
|
|
1.71 |
% |
|
|
986,986 |
|
|
|
4,240 |
|
|
|
1.72 |
% |
|
Federal funds sold and other |
|
196,129 |
|
|
|
290 |
|
|
|
0.59 |
% |
|
|
124,502 |
|
|
|
268 |
|
|
|
0.86 |
% |
|
Total interest-earning assets |
$ |
4,005,509 |
|
|
|
42,446 |
|
|
|
4.20 |
% |
|
$ |
3,964,633 |
|
|
|
38,318 |
|
|
|
3.88 |
% |
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW and money market deposits |
$ |
2,082,515 |
|
|
|
862 |
|
|
|
0.16 |
% |
|
$ |
2,068,319 |
|
|
|
895 |
|
|
|
0.17 |
% |
|
Time deposits |
|
619,525 |
|
|
|
1,019 |
|
|
|
0.65 |
% |
|
|
587,733 |
|
|
|
1,130 |
|
|
|
0.77 |
% |
|
Total interest-bearing deposits |
|
2,702,040 |
|
|
|
1,881 |
|
|
|
0.28 |
% |
|
|
2,656,052 |
|
|
|
2,025 |
|
|
|
0.31 |
% |
|
FHLB advances |
|
1,401 |
|
|
|
10 |
|
|
|
2.78 |
% |
|
|
37,656 |
|
|
|
80 |
|
|
|
0.86 |
% |
|
Other borrowings |
|
131,180 |
|
|
|
1,580 |
|
|
|
4.78 |
% |
|
|
134,002 |
|
|
|
1,583 |
|
|
|
4.74 |
% |
|
Total interest-bearing liabilities |
$ |
2,834,621 |
|
|
|
3,471 |
|
|
|
0.49 |
% |
|
$ |
2,827,710 |
|
|
|
3,688 |
|
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
38,975 |
|
|
|
|
|
|
|
|
|
|
$ |
34,630 |
|
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.71 |
% |
|
|
|
|
|
|
|
|
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
|
|
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 - 10/19/2021
TABLE 8. NON-GAAP FINANCIAL MEASURES (Unaudited)
(Dollars in thousands, except per share data)
|
|
|
As of and for the three months ended |
|
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
$ |
15,059 |
|
|
$ |
19,581 |
|
|
$ |
19,346 |
|
|
$ |
14,599 |
|
|
$ |
(93,058 |
) |
|
Add: goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,831 |
|
|
Less: tax effect |
|
|
3,286 |
|
|
|
4,415 |
|
|
|
4,271 |
|
|
|
2,111 |
|
|
|
2,652 |
|
|
Adjusted income |
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
$ |
15,075 |
|
|
$ |
12,488 |
|
|
$ |
9,121 |
|
|
Weighted average common shares outstanding |
|
|
14,384,302 |
|
|
|
14,356,958 |
|
|
|
14,464,291 |
|
|
|
14,760,810 |
|
|
|
15,040,407 |
|
|
Effect of weighted average dilutive shares assuming
positive net income |
|
|
285,010 |
|
|
|
317,880 |
|
|
|
269,792 |
|
|
|
173,248 |
|
|
|
82,804 |
|
|
Weighted average diluted shares |
|
|
14,669,312 |
|
|
|
14,674,838 |
|
|
|
14,734,083 |
|
|
|
14,934,058 |
|
|
|
15,123,211 |
|
|
Diluted earnings per share adjusted for goodwill
impairment |
|
$ |
0.80 |
|
|
$ |
1.03 |
|
|
$ |
1.02 |
|
|
$ |
0.84 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
$ |
417,749 |
|
|
$ |
412,995 |
|
|
$ |
397,815 |
|
|
$ |
407,649 |
|
|
$ |
402,172 |
|
|
Less: goodwill |
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Less: core deposit intangibles, net |
|
|
12,963 |
|
|
|
13,993 |
|
|
|
15,023 |
|
|
|
16,057 |
|
|
|
17,101 |
|
|
Less: mortgage servicing asset, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
Less: naming rights, net |
|
|
1,098 |
|
|
|
1,109 |
|
|
|
1,119 |
|
|
|
1,130 |
|
|
|
1,141 |
|
|
Tangible common equity |
|
$ |
372,087 |
|
|
$ |
366,292 |
|
|
$ |
350,072 |
|
|
$ |
358,861 |
|
|
$ |
352,328 |
|
|
Common shares issued at period end |
|
|
14,365,785 |
|
|
|
14,360,172 |
|
|
|
14,383,913 |
|
|
|
14,540,556 |
|
|
|
14,853,487 |
|
|
Diluted common shares outstanding at period end |
|
|
14,637,306 |
|
|
|
14,664,603 |
|
|
|
14,668,287 |
|
|
|
14,756,378 |
|
|
|
14,945,282 |
|
|
Book value per common share |
|
$ |
29.08 |
|
|
$ |
28.76 |
|
|
$ |
27.66 |
|
|
$ |
28.04 |
|
|
$ |
27.08 |
|
|
Tangible book value per common share |
|
$ |
25.90 |
|
|
$ |
25.51 |
|
|
$ |
24.34 |
|
|
$ |
24.68 |
|
|
$ |
23.72 |
|
|
Tangible book value per diluted common share |
|
$ |
25.42 |
|
|
$ |
24.98 |
|
|
$ |
23.87 |
|
|
$ |
24.32 |
|
|
$ |
23.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
$ |
4,196,184 |
|
|
$ |
4,013,356 |
|
|
$ |
3,865,571 |
|
|
Less: goodwill |
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
|
31,601 |
|
|
Less: core deposit intangibles, net |
|
|
12,963 |
|
|
|
13,993 |
|
|
|
15,023 |
|
|
|
16,057 |
|
|
|
17,101 |
|
|
Less: mortgage servicing asset, net |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
Less: naming rights, net |
|
|
1,098 |
|
|
|
1,109 |
|
|
|
1,119 |
|
|
|
1,130 |
|
|
|
1,141 |
|
|
Tangible assets |
|
$ |
4,217,606 |
|
|
$ |
4,221,513 |
|
|
$ |
4,148,441 |
|
|
$ |
3,964,568 |
|
|
$ |
3,815,727 |
|
|
Total stockholders' equity to total assets |
|
|
9.80 |
% |
|
|
9.68 |
% |
|
|
9.48 |
% |
|
|
10.16 |
% |
|
|
10.40 |
% |
|
Tangible common equity to tangible assets |
|
|
8.82 |
% |
|
|
8.68 |
% |
|
|
8.44 |
% |
|
|
9.05 |
% |
|
|
9.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average stockholders' equity |
|
$ |
422,879 |
|
|
$ |
404,039 |
|
|
$ |
395,638 |
|
|
$ |
409,572 |
|
|
$ |
483,088 |
|
|
Less: average intangible assets |
|
|
46,335 |
|
|
|
47,334 |
|
|
|
48,376 |
|
|
|
54,547 |
|
|
|
154,049 |
|
|
Average tangible common equity |
|
$ |
376,544 |
|
|
$ |
356,705 |
|
|
$ |
347,262 |
|
|
$ |
355,025 |
|
|
$ |
329,039 |
|
|
Net income (loss) allocable to common stockholders |
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
$ |
15,075 |
|
|
$ |
12,488 |
|
|
$ |
(90,405 |
) |
|
Add: goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,831 |
|
|
Less: tax effect of goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,305 |
|
|
Adjusted net income (loss) plus goodwill
impairment |
|
|
11,773 |
|
|
|
15,166 |
|
|
|
15,075 |
|
|
|
12,488 |
|
|
|
9,121 |
|
|
Amortization of intangible assets |
|
|
1,040 |
|
|
|
1,041 |
|
|
|
1,045 |
|
|
|
1,055 |
|
|
|
1,043 |
|
|
Less: tax effect of intangible assets amortization |
|
|
218 |
|
|
|
219 |
|
|
|
219 |
|
|
|
222 |
|
|
|
234 |
|
|
Adjusted net income (loss) allocable to common
stockholders |
|
$ |
12,595 |
|
|
$ |
15,988 |
|
|
$ |
15,901 |
|
|
$ |
13,321 |
|
|
$ |
9,930 |
|
|
Return on total average stockholders' equity
(ROAE) annualized |
|
|
11.05 |
% |
|
|
15.06 |
% |
|
|
15.45 |
% |
|
|
12.13 |
% |
|
|
(74.45 |
)% |
|
Return on average tangible common equity
(ROATCE) annualized |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
18.57 |
% |
|
|
14.93 |
% |
|
|
(108.31 |
)% |
|
Adjusted return on average tangible common
equity |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
18.57 |
% |
|
|
14.93 |
% |
|
|
12.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Bancshares, Inc.
PRESS RELEASE - 10/19/2021
|
Non-interest expense |
|
$ |
30,689 |
|
|
$ |
25,806 |
|
|
$ |
24,881 |
|
|
$ |
28,460 |
|
|
$ |
130,835 |
|
|
Less: merger expense |
|
|
4,015 |
|
|
|
460 |
|
|
|
152 |
|
|
|
299 |
|
|
|
— |
|
|
Less: loss on debt extinguishment |
|
|
372 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Less: goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,831 |
|
|
Non-interest expense, excluding merger expense, loss
on debt extinguishment and goodwill impairment |
|
$ |
26,302 |
|
|
$ |
25,346 |
|
|
$ |
24,729 |
|
|
$ |
28,161 |
|
|
$ |
26,004 |
|
|
Net interest income |
|
$ |
38,975 |
|
|
$ |
34,630 |
|
|
$ |
31,759 |
|
|
$ |
35,559 |
|
|
$ |
32,107 |
|
|
Non-interest income |
|
|
7,831 |
|
|
|
9,100 |
|
|
|
6,712 |
|
|
|
8,500 |
|
|
|
6,485 |
|
|
Less: net gain on acquisition |
|
|
— |
|
|
|
663 |
|
|
|
(78 |
) |
|
|
2,145 |
|
|
|
— |
|
|
Less: net gains (losses) from securities transactions |
|
|
381 |
|
|
|
— |
|
|
|
17 |
|
|
|
(1 |
) |
|
|
— |
|
|
Non-interest income, excluding gains (losses) from
securities transactions |
|
$ |
7,450 |
|
|
$ |
8,437 |
|
|
$ |
6,773 |
|
|
$ |
6,356 |
|
|
$ |
6,485 |
|
|
Net interest income plus non-interest income,
excluding net gain on acquisition and net gains
(losses) from securities transactions |
|
$ |
46,425 |
|
|
$ |
43,067 |
|
|
$ |
38,532 |
|
|
$ |
41,915 |
|
|
$ |
38,592 |
|
|
Non-interest expense less goodwill impairment to
net interest income plus non-interest income |
|
|
65.57 |
% |
|
|
59.01 |
% |
|
|
64.67 |
% |
|
|
64.60 |
% |
|
|
67.38 |
% |
|
Efficiency ratio |
|
|
56.65 |
% |
|
|
58.85 |
% |
|
|
64.18 |
% |
|
|
67.19 |
% |
|
|
67.38 |
% |
|
Net income (loss) allocable to common stockholders |
|
$ |
11,773 |
|
|
$ |
15,166 |
|
|
$ |
15,075 |
|
|
$ |
12,488 |
|
|
$ |
(90,405 |
) |
|
Add: income tax provision |
|
|
3,286 |
|
|
|
4,415 |
|
|
|
4,271 |
|
|
|
2,111 |
|
|
|
(2,653 |
) |
|
Add: provision (reversal) of credit losses |
|
|
1,058 |
|
|
|
(1,657 |
) |
|
|
(5,756 |
) |
|
|
1,000 |
|
|
|
815 |
|
|
Add: goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
104,831 |
|
|
Adjusted net income |
|
$ |
16,117 |
|
|
$ |
17,924 |
|
|
$ |
13,590 |
|
|
$ |
15,599 |
|
|
$ |
12,588 |
|
|
Total average assets |
|
$ |
4,275,298 |
|
|
$ |
4,231,439 |
|
|
$ |
4,143,752 |
|
|
$ |
3,910,628 |
|
|
$ |
4,041,187 |
|
|
Total average stockholders' equity |
|
$ |
422,879 |
|
|
$ |
404,039 |
|
|
$ |
395,638 |
|
|
$ |
409,572 |
|
|
$ |
483,088 |
|
|
Return on average assets (ROAA) annualized |
|
|
1.09 |
% |
|
|
1.44 |
% |
|
|
1.48 |
% |
|
|
1.27 |
% |
|
|
(8.90 |
)% |
|
Adjusted return on average assets |
|
|
1.50 |
% |
|
|
1.70 |
% |
|
|
1.33 |
% |
|
|
1.59 |
% |
|
|
1.24 |
% |
|
Adjusted return on average equity |
|
|
15.12 |
% |
|
|
17.79 |
% |
|
|
13.93 |
% |
|
|
15.15 |
% |
|
|
10.37 |
% |
Third Quarter 2021 Results Presentation October 19, 2021 Exhibit 99.2
Disclaimers 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, 2021, 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.
EQBK’s Value Proposition 2
Proforma Franchise Overview 3 Current Security Bank Location
Current ASBI Location
Equity Bank Location
Executive Leadership 4 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 Brad Elliott
Chairman & CEO
Years at Equity: 19 | Years in Banking: 32 Greg Kossover
EVP, COO & CFO 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 Greg Kossover
Chief Operating Officer
Years at Equity: 8 | Years in Banking: 21 Eric Newell
Chief Financial Officer
Years at Equity 1 | Years in Banking: 19 Craig Anderson
President
Years at Equity: 3 | Years in Banking: 39 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
Diverse Market Segments 5 Source: S&P Market Intelligence. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Pro Forma Equity Bank with ASB&T operates for 2021 and 2020 data. Diverse market segments with economies based on transportation, manufacturing and healthcare
Top employers in the region operate in a diverse array of industries including telecommunications, professional services, aircraft manufacturing, OEM manufacturing and transportation.
Equity Bancshares ranks in the Top 10 for market share in 31 of the 36 counties served and ranks in the Top 5 in 24 of those counties.
Continue Building Value via Strategic Execution 6 2009
$8.8MM of TARP issued
Opened 2 branches in Overland Park, KS 2014
Repurchased 1.3mm shares
Refinanced TARP with Loan
Close/Sell 3 branches and opened branch at Waterfront 2012
First Community Bancshares (FCB) merger
$20.4M Capital Raise
2011
Repaid TARP with SBLF
Purchase of 4 branches from Citizens Bancshares (Topeka) 2003-2004
Acquisition of National Bank of Andover
Rebrand as Equity Bank 2005
Purchase of 2 Wichita branches from Hillcrest Bancshares 2006
Charter of FNB of Sarcoxie, MO acquisition
Acquisition of Mortgage Centre, LLC
Opened 2 branches in MO 2008
Ellis State Bank acquisition (Ellis/Hays)
Branch opened in Lee’s Summit, MO
2010
$20.0M Capital Raise to fund growth
2013
Integrate FCB and double earnings
CFO and CRO roles filled
Implement repositioning initiatives 2007
Signature Bank KC acquisition
Phase I Phase II Phase III Start-Up
2003 - 2007 Growth
2008 - 2011 Leverage Infrastructure Profitably
2012 - 2016 2015
First Independence (FFSL) merger
IPO
2016
Community First (CFBI) merger Completed $35.4M private placement capital raise (PIPE)
Phase IV Platform for Best in Class
2017-present 2017
Closed Prairie State, Patriot Bank, and Eastman Bank mergers $2.2B $610MM (1) (2) (3) $4.3B (4)
2018
Hired President: Craig Anderson
Closed Kansas Bank Corporation, Adams Dairy Bank, and City Bank and Trust mergers. 2019
Launched ETWM
Implemented Q2 digital banking platform
Closed acquisition of three branches in Guymon and Cordell, Oklahoma from Mid-First Bank (February)
2020
Hire of Eric Newell as CFO
Consolidated three branches
Closed Almena State Bank FDIC assisted transaction Note: Gray shading indicates capital activity.
(1) Data as of 12/31/2007.
(2) Data as of 12/31/2011.
(3) Data as of 12/31/2016.
(4) As reported for the quarter ended 9/30/2021. Completed $75MM subordinated debt issuance, bolstering capital in uncertain times while not diluting current shareholders
2021
Announced merger with American State Bancshares (closed and converted in Q4)
Announced purchase of three bank locations from Security Bank in St. Joseph, MO.
7 Proven Track Record of Executing on M&A Since July 2015, EQBK has closed and integrated 10 bank acquisitions Pricing Multiples Transaction Impact (1) The American State Bancshares, Inc. merger was closed and converted on 10/1
8 Uniquely Positioned for Growth There are over 1000 bank offices with deposits less than $750MM in our operating market.
9 Equity Bank Today Percentages are reflective of 2021 year-to-date growth Checking Accounts
87,478 Online Banking Users
73,604 Bill Pay Subscribers
21,335 $193M
+24% NIB Deposits 14,703
+14% Business Checking 58%
+14% Online Banking Adoption 13,187
+16% Mobile Deposit Active Users
Diversified Loan Portfolio(1, 2) 10 Year-to-Date Loan Yield(3) 4.52% 5.43% 5.74% 5.73% For financial statement reporting, management considers other factors in addition to purpose when assessing risk and identifying reporting classes. As such, the above is not intended to reconcile to the Company’s loan disclosures within the applicable financial statement.
Composition excludes the impact of PPP loans as of each applicable date.
For the Year-to-Date periods ended December 31, 2020 and September 30, 2021, yield has been adjusted to exclude PPP loans, including these loans yield would be 5.00% and 4.93%, respectively. 5.19%
Credit Quality & Capital Ratios 11 Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. (1) Capital Ratios Total Reserve Ratio Classified Assets
Asset Quality – Quarter-over-Quarter 12 Nonperforming Assets Net Charge-Offs (NCO)/ Average Loans Nonaccrual Detail Includes loans 90+ days past due and other repossessed assets 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.
(1,2)
Net charge-offs were $126 thousand for the quarter, or 2 bps of average loan assets annualized.
Reserve ratio, exclusive of PPP assets, is 2.04% remaining well positioned for any losses which materialize from the COVID pandemic and associated response.
During the period, management moved $9.7 million in nonaccrual assets associated with our FDIC assisted transaction during 2020 back to accruing status.
During the period, management downgraded one significant credit relationship and placed it on nonaccrual. The credit is tied to aerospace and has experienced challenges related to both the 737 Max and COVID. (2)
CECL Results 13 The company adopted ASC 326, Financials Instruments – Credit Losses ( “CECL”), on January 1, 2021.
Dollars in thousands Impact of CECL adoption(1) and Subsequent Intra-Quarter Movement
Bank Liquidity & Dividend Capacity 14 Dividend Capacity from the Bank Liquidity Analysis Amortized Cost Carrying Value Unrealized Gain / (Loss) Description Portfolio Characteristics
Tangible Book Value Growth 15 Tangible Book Value per Share(1) and Tangible Common Equity (1) TBV CAGR
2017 – Q3 2021: 10.3% Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Tangible Book Value 16 Tangible Book Value per Share(1) Intra-Quarter movement Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Fully integrated digital banking platform with an adoption rate of 58.3% among core banking customers
Continued emphasis on development of relationships to drive growth in non-interest bearing deposits. Year-to-date growth of more than $190 million.
17 Strong Core Deposit Franchise For the quarter ended September 30, 2021. Includes interest and non-interest bearing deposits.
Core deposits excludes time deposits > $100K.
Dollars in thousands. Cost of Deposits: 0.20%(1)
Deposit Composition Core Deposits / Total Deposits (2) Total Deposits & Loan to Deposit Ratio
18 Core Deposit Growth Includes the impact of non-interest bearing deposits
Dollars in millions Cost of Deposits(1) 0.20% 0.96% 1.30% 0.91% 0.52%
Robust Growth 19 Gross Loans ($Millions) Total Deposits ($Millions) Tangible Book Value per Share(1) Pre-Tax, Pre-Provision Net Revenue ($Thousands)(2) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Excludes merger expenses and gain on acquisition in all applicable periods, as well as the impact of the goodwill impairment charge taken during the third quarter 2020 of ($104.8M).
Net Interest Income & Net Interest Margin 20 ($) Thousands (1) (1) (1) Excludes the impact of PPP loans. Including these balances in the third, fourth quarter 2020, and first, second, and third quarter 2021 results would be 3.47%, 3.88%, and 3.31%, 3.50%, and 3.86% respectively, while YTD 2020 and 2021 results would be 3.63% and 3.56%, respectively. Annual Results
Interest Income & Net Interest Margin 21 Government Programs
PPP fee income increased due to forgiveness received by borrowers during the quarter. However, due to current year originations, roughly $3 million in deferred fee balances remain on the books at quarter end. Increasing average balances as a % of AEA drives down yield %.
Non-Interest Bearing Deposits
Non-interest bearing deposits are up more than $190M as of 9/30 from 12/31/20. Continued emphasis on growing these relationships provides liquidity and investable dollars without associated costs.
Roll on Rates
The current interest rate environment is driving yields on assets down. As the Bank continues to see paydowns on debt and investment assets, NII and NIM will be challenged.
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.
Deployment of Excess Cash
With stimulus programs and continued effort to drive deposits, excess cash balances will be re-deployed in earning assets which we believe will drive up net interest income while driving down net interest margin.
Adjusted Third Quarter NIM Net Interest Income Period over Period
Income Performance Metrics 22 Non-GAAP financial measure. Refer to the non-GAAP reconciliation at the end of this presentation. Return on Tangible Common Equity(1) Efficiency Ratio(1) 1H 2021 shows positive results, partially impacted by provision for credit losses benefit.
2H 2021 continued positive results despite merger expenses. Commentary 1H 2021, growing non-interest income lines, including credit card, debit card, and TWM as well as PPP fee income recognition provided benefit.
2H 2021, growing non-interest income lines continue to provide benefit.
23 2021 Third Quarter Highlights Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Year-over-Year is a comparison to comparable quarter end in previous year. Quarter-over-Quarter is comparison to previous quarter.
Diluted EPS
$0.80 Revenue
$46.4M ROAE
11.05% $39M
Net Interest
Income + 7%
Annualized
Non-PPP
Loan Growth $7.8M
Total Non-Interest
Income
+$290K
+81% Trust and Wealth Management Revenue
Year over Year(2)
0.20%
Cost of
Deposits
Third Quarter Highlights - Continued 24 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.
25 Adjusted Operating Performance Trends – Quarter-over-Quarter(1) Adjusted Diluted Earnings Per Share (2) Efficiency Ratio(1) & Non-Interest Expense / Average Assets(2) 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. The third quarter 2020 does not include loss on impairment of goodwill. See the non-GAAP reconciliation at the end of the presentation for additional detail on these balances. Adjusted Net Income(2) Pre-Tax, Pre-Provision Net Revenue(2)
26 Outlook on Key Business Drivers Average Deposits $3,400-3,700M $3,686M 1-2% growth Key Driver Q3’21 Results Q3’21 Outlook Average Loans(1) $2,400-$2,600M $2,569M 3-8% growth Net Interest Margin(1,5) 2.90-3.10% 3.19% Maintain Non-Interest Income(2) $6.5-7.5M $7.5M 10-20% growth Non-Interest Expense (3) $24-26M $26.3M 1-3% increase Tangible Book Value $370-380M $372M 5-10% growth Considerations & Expectations Continued uncertainty of the lasting impact of COVID-19 from 2020 as well as severity of impact in 2021 bring challenges for precision of outlook.
Focus on continued balance sheet strength and security while continuing to pursue growth.
FY’22 Outlook(4) 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 Gain on Securities Transactions of $385K
Excluding Merger Expenses of $4M and Loss on Debt Extinguishment of $372K
FY’22 figures represent change to annualized 2021 Q4
Including $1.35M impact of interest income recognized from previously non-accrual loans
Average Earning Assets(1) $3,500-$3,700M $3,826M 2-5% growth Annual Effective Tax Rate 23-25% 22% 22-24% Q4’21 Outlook $4,100-4,300M $3,000-$3,200M 2.90-3.10% $7.5-9.0M $28-$30M $410-430M $4,400-$4,500M 22-24%
27 Focus Variables for Outlook & Forecast Business activity creates opportunity for lending and deposit growth. Pandemic response and resolution will be significant driver. Directly related to credit quality as well as trust in our business.
Stimulus efforts and associated effect may have significant impact. Impacts rates on our product offerings and applies pressure to earnings.
Must be able to manage cost and profit yields effectively. Providing customers with rates and services that are competitive with our peers.
Irrational operators may have short term impact on opportunities. Growth strategy must be flexible to the other variables that affect our investment options. U.S. politics affect banking regulations, international relationships, tax policies and more. Economic Environment Customer Needs Cost of Funding Competitive Market Investment Opportunities Political Environment Our outlook requires clarity around certain variables, including:
28 Government Facilitated Lending Programs
Equity was an active participant in the first round of PPP. Funding more than $375M in loans to protect jobs and businesses within our footprint.
The management team has worked expeditiously to obtain forgiveness on behalf of our borrowers. Through the end of the third quarter, 99.5% of these loans have completed the forgiveness process.
Equity was also an active participant in round 2 of the program, funding 4,311 loans totaling $278M in paycheck protection for our customers and communities. Through the end of the third quarter, 90.1% of these loans have completed the forgiveness process.
Commentary Dollars in thousands
Appendix 29
Selected Income Statement Data 30
Selected Balance Sheet Data 31 Demonstrating balance sheet strength Includes interest-bearing deposits in other banks.
Includes Federal Reserve Bank and Federal Home Loan Bank stock.
Includes loans held-for-sale.
Capitalization 32 (1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Maintaining a strong regulatory capital position
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
33
TCE to TA and Tangible Book Value per Share 34
ROATCE and Efficiency Ratio 35
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