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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 18, 2022
EQUITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Kansas |
001-37624 |
72-1532188 |
|
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
|
|
|
|
7701 East Kellogg Drive, Suite 300 Wichita, KS |
|
67207 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code: 316.612.6000
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:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ 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:
|
Title of each class Class A, Common Stock, par value $0.01 per share |
Trading Symbol EQBK |
Name of each exchange on which registered The Nasdaq Stock Market LLC |
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).
☐ Emerging growth company
☐ 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 2.02 Results of Operations and Financial Condition.
On October 18, 2022 Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 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 7.01 Regulation FD Disclosure.
The Company intends to hold an investor call and webcast to discuss its financial results for the third quarter ended September 30, 2022, on Wednesday, October 19, 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 third quarter ended September 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 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
|
Description |
99.1 |
|
|
99.2 |
|
|
104 |
|
Cover Page Interactive Data File |
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.
|
Equity Bancshares, Inc. |
|
|
Date: October 18, 2022 |
By: /s/ Eric R. Newell |
|
Eric R. Newell |
|
Executive Vice President and Chief Financial Officer |
2
Exhibit 99.1
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
Equity Bancshares, Inc. Reports Third Quarter Results, Continued Organic Growth
Company saw 3.5% linked quarter revenue growth led by expanding Net Interest Margin, with a 19.7% reduction in total nonperforming assets
WICHITA, Kansas, October 18, 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 $15.2 million and $0.93 earnings per diluted share for the quarter ended September 30, 2022.
"In 2022, our Company has realized meaningful, organic growth while emphasizing return to our stockholders via earnings, share buybacks, and an increasing dividend. Annualized growth within our commercial and commercial real estate loan portfolios of 17.13% is a credit to our sales and operational teams,” said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc. “We have been diligent in enhancing our sales process, expanding our marketing geography, and hiring exceptional operators which has and will continue to drive our Company’s success.”
“At the end of the quarter, our classified asset ratio is down more than 50% year-to-date and at an all-time low for our Company,” continued Mr. Elliott. “The committed efforts of our sales and credit teams to source and underwrite strong credits while meeting the financing needs of the communities we serve allows our Company to hold true to its mission as a community bank.”
Notable Items:
Financial Results for the Quarter Ended September 30, 2022
Net income allocable to common stockholders was $15.2 million, or $0.93 per diluted share, for the three months ended September 30, 2022, as compared to $15.3 million, or $0.94 per diluted share, for the three months ended June 30, 2022. The decrease for the second quarter of 2022 is primarily driven by income taxes as a true-up of rate was experienced in the second quarter that, as expected, did not repeat. Pre-tax income increased $1.9 million as the Company's net interest income benefitted from increasing interest rates.
Net Interest Income
Net interest income was $41.9 million for the three months ended September 30, 2022, as compared to $39.6 million for the three months ended June 30, 2022, an increase of $2.4 million, or 6.1%. The yield on interest-earning assets increased 44 basis points to 4.18% during the quarter ended September 30, 2022, as compared to 3.74% for the quarter ended June 30, 2022. The cost of interest-bearing deposits increased by 29 basis points during the quarter, moving from 0.28% at June 30, 2022 to 0.57% at September 30, 2022.
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
Provision for Credit Losses
During the three months ended September 30, 2022, there was a net release of $136 thousand compared to a provision to the allowance for credit losses of $824 thousand in the previous quarter. The minimal release of provision for the quarter is the result of having a relatively similar sized loan portfolio and similar realized loss rates; however, the Company continues to estimate the allowance for credit loss with assumptions that anticipate slowing prepayments rates and continued market disruption caused by elevated inflation, supply chain issues and the impact of monetary policy on consumers and businesses. For the three months ended September 30, 2022, we had net charge-offs of $1.6 million as compared to $176 thousand for the three months ended June 30, 2022.
Non-Interest Income
Total non-interest income was $9.0 million for the three months ended September 30, 2022, as compared to $9.6 million for the three months ended June 30, 2022, or a decrease of 6.9%, quarter over quarter. The $600 thousand decrease was primarily due to a decrease in net gain on acquisition and branch sales of $540 thousand.
Non-Interest Expense
Total non-interest expense for the quarter ended September 30, 2022, was $32.2 million as compared to $31.4 million for the quarter ended June 30, 2022. The $800 thousand change was primarily due to an increase in data processing of $496 thousand and an increase in the write-off of tax investments of $423 thousand for the quarter ended September 30, 2022, compared to the quarter ended June 30, 2022.
Asset Quality
As of September 30, 2022, Equity’s allowance for credit losses to total loans decreased to 1.4% as compared to 1.5% at June 30, 2022. Nonperforming assets were $29.7 million as of September, 2022, or 0.6% of total assets, compared to $37.0 million at June 30, 2022, or 0.7% of total assets. Non-accrual loans were $23.1 million at September 30, 2022, as compared to $18.9 million at June 30, 2022. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $63.1 million, or 11.0% of regulatory capital, down from $72.1 million, or 13.1% of regulatory capital as of June 30, 2022.
During the quarter ended September 30, 2022, non-performing assets decreased $7.3 million due to decreases in other repossessed assets of $8.7 million and other real estate owned of $2.5 million, partially offset by increases in non-accrual loans of $4.3 million.
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 9.7% at September 30, 2022. At June 30, 2022, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.1%, the total capital to risk-weighted assets ratio was 16.0% and the total leverage ratio was 9.1%.
The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.1%, a ratio of total capital to risk-weighted assets of 15.4% and a total leverage ratio of 10.5% at September 30, 2022. At June 30, 2022, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.9%, the ratio of total capital to risk-weighted assets was 15.1% and the total leverage ratio was 9.9%.
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
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 third quarter results on Wednesday, October 19, 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 October 26, 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 – 10/18/2022
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, except as required by law. 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
cnavratil@equitybank.com
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
Media Contact:
John J. Hanley
SVP, Senior Director of Marketing
Equity Bancshares, Inc.
(913) 583-8004
jhanley@equitybank.com
Unaudited Financial Tables
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
|
|
Three months ended |
|
|
Nine months ended |
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loans, including fees |
|
$ |
41,555 |
|
|
$ |
37,581 |
|
|
$ |
114,710 |
|
|
$ |
102,392 |
|
Securities, taxable |
|
|
5,792 |
|
|
|
3,920 |
|
|
|
16,767 |
|
|
|
11,242 |
|
Securities, nontaxable |
|
|
687 |
|
|
|
655 |
|
|
|
2,020 |
|
|
|
2,096 |
|
Federal funds sold and other |
|
|
514 |
|
|
|
290 |
|
|
|
1,327 |
|
|
|
846 |
|
Total interest and dividend income |
|
|
48,548 |
|
|
|
42,446 |
|
|
|
134,824 |
|
|
|
116,576 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits |
|
|
4,403 |
|
|
|
1,881 |
|
|
|
8,308 |
|
|
|
6,316 |
|
Federal funds purchased and retail repurchase agreements |
|
|
71 |
|
|
|
24 |
|
|
|
150 |
|
|
|
72 |
|
Federal Home Loan Bank advances |
|
|
409 |
|
|
|
10 |
|
|
|
594 |
|
|
|
155 |
|
Subordinated debt |
|
|
1,721 |
|
|
|
1,556 |
|
|
|
4,973 |
|
|
|
4,669 |
|
Total interest expense |
|
|
6,604 |
|
|
|
3,471 |
|
|
|
14,025 |
|
|
|
11,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net interest income |
|
|
41,944 |
|
|
|
38,975 |
|
|
|
120,799 |
|
|
|
105,364 |
|
Provision (reversal) for credit losses |
|
|
(136 |
) |
|
|
1,058 |
|
|
|
276 |
|
|
|
(6,355 |
) |
Net interest income after provision (reversal) for credit losses |
|
|
42,080 |
|
|
|
37,917 |
|
|
|
120,523 |
|
|
|
111,719 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service charges and fees |
|
|
2,788 |
|
|
|
2,360 |
|
|
|
7,927 |
|
|
|
6,125 |
|
Debit card income |
|
|
2,682 |
|
|
|
2,574 |
|
|
|
8,120 |
|
|
|
7,603 |
|
Mortgage banking |
|
|
310 |
|
|
|
801 |
|
|
|
1,300 |
|
|
|
2,584 |
|
Increase in value of bank-owned life insurance |
|
|
754 |
|
|
|
1,169 |
|
|
|
2,355 |
|
|
|
2,446 |
|
Net gain on acquisition and branch sales |
|
|
— |
|
|
|
— |
|
|
|
540 |
|
|
|
585 |
|
Net gains (losses) from securities transactions |
|
|
(17 |
) |
|
|
381 |
|
|
|
(9 |
) |
|
|
398 |
|
Other |
|
|
2,452 |
|
|
|
546 |
|
|
|
7,395 |
|
|
|
3,902 |
|
Total non-interest income |
|
|
8,969 |
|
|
|
7,831 |
|
|
|
27,628 |
|
|
|
23,643 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Salaries and employee benefits |
|
|
15,442 |
|
|
|
13,588 |
|
|
|
45,893 |
|
|
|
39,079 |
|
Net occupancy and equipment |
|
|
3,127 |
|
|
|
2,475 |
|
|
|
9,304 |
|
|
|
7,170 |
|
Data processing |
|
|
4,138 |
|
|
|
3,257 |
|
|
|
11,549 |
|
|
|
9,394 |
|
Professional fees |
|
|
1,265 |
|
|
|
1,076 |
|
|
|
3,547 |
|
|
|
3,148 |
|
Advertising and business development |
|
|
1,191 |
|
|
|
760 |
|
|
|
3,139 |
|
|
|
2,241 |
|
Telecommunications |
|
|
487 |
|
|
|
439 |
|
|
|
1,399 |
|
|
|
1,531 |
|
FDIC insurance |
|
|
340 |
|
|
|
465 |
|
|
|
780 |
|
|
|
1,305 |
|
Courier and postage |
|
|
436 |
|
|
|
344 |
|
|
|
1,348 |
|
|
|
1,040 |
|
Free nationwide ATM cost |
|
|
551 |
|
|
|
519 |
|
|
|
1,593 |
|
|
|
1,504 |
|
Amortization of core deposit intangibles |
|
|
957 |
|
|
|
1,030 |
|
|
|
3,118 |
|
|
|
3,094 |
|
Loan expense |
|
|
174 |
|
|
|
207 |
|
|
|
566 |
|
|
|
626 |
|
Other real estate owned |
|
|
188 |
|
|
|
(342 |
) |
|
|
201 |
|
|
|
(805 |
) |
Loss on debt extinguishment |
|
|
— |
|
|
|
372 |
|
|
|
— |
|
|
|
372 |
|
Merger expenses |
|
|
115 |
|
|
|
4,015 |
|
|
|
526 |
|
|
|
4,627 |
|
Other |
|
|
3,825 |
|
|
|
2,484 |
|
|
|
10,168 |
|
|
|
7,050 |
|
Total non-interest expense |
|
|
32,236 |
|
|
|
30,689 |
|
|
|
93,131 |
|
|
|
81,376 |
|
Income (loss) before income tax |
|
|
18,813 |
|
|
|
15,059 |
|
|
|
55,020 |
|
|
|
53,986 |
|
Provision for income taxes |
|
|
3,642 |
|
|
|
3,286 |
|
|
|
8,940 |
|
|
|
11,972 |
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
15,171 |
|
|
$ |
11,773 |
|
|
$ |
46,080 |
|
|
$ |
42,014 |
|
Basic earnings (loss) per share |
|
$ |
0.94 |
|
|
$ |
0.82 |
|
|
$ |
2.83 |
|
|
$ |
2.92 |
|
Diluted earnings (loss) per share |
|
$ |
0.93 |
|
|
$ |
0.80 |
|
|
$ |
2.79 |
|
|
$ |
2.86 |
|
Weighted average common shares |
|
|
16,056,658 |
|
|
|
14,384,302 |
|
|
|
16,303,586 |
|
|
|
14,397,146 |
|
Weighted average diluted common shares |
|
|
16,273,231 |
|
|
|
14,669,312 |
|
|
|
16,516,787 |
|
|
|
14,688,092 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
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, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans, including fees |
|
$ |
41,555 |
|
|
$ |
36,849 |
|
|
$ |
36,306 |
|
|
$ |
34,942 |
|
|
$ |
37,581 |
|
Securities, taxable |
|
|
5,792 |
|
|
|
5,584 |
|
|
|
5,391 |
|
|
|
4,754 |
|
|
|
3,920 |
|
Securities, nontaxable |
|
|
687 |
|
|
|
678 |
|
|
|
655 |
|
|
|
747 |
|
|
|
655 |
|
Federal funds sold and other |
|
|
514 |
|
|
|
513 |
|
|
|
300 |
|
|
|
349 |
|
|
|
290 |
|
Total interest and dividend income |
|
|
48,548 |
|
|
|
43,624 |
|
|
|
42,652 |
|
|
|
40,792 |
|
|
|
42,446 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
4,403 |
|
|
|
2,183 |
|
|
|
1,722 |
|
|
|
1,939 |
|
|
|
1,881 |
|
Federal funds purchased and retail repurchase agreements |
|
|
71 |
|
|
|
46 |
|
|
|
33 |
|
|
|
32 |
|
|
|
24 |
|
Federal Home Loan Bank advances |
|
|
409 |
|
|
|
176 |
|
|
|
9 |
|
|
|
14 |
|
|
|
10 |
|
Subordinated debt |
|
|
1,721 |
|
|
|
1,653 |
|
|
|
1,599 |
|
|
|
1,592 |
|
|
|
1,556 |
|
Total interest expense |
|
|
6,604 |
|
|
|
4,058 |
|
|
|
3,363 |
|
|
|
3,577 |
|
|
|
3,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income |
|
|
41,944 |
|
|
|
39,566 |
|
|
|
39,289 |
|
|
|
37,215 |
|
|
|
38,975 |
|
Provision (reversal) for credit losses |
|
|
(136 |
) |
|
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
Net interest income after provision (reversal) for credit losses |
|
|
42,080 |
|
|
|
38,742 |
|
|
|
39,701 |
|
|
|
39,340 |
|
|
|
37,917 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Service charges and fees |
|
|
2,788 |
|
|
|
2,617 |
|
|
|
2,522 |
|
|
|
2,471 |
|
|
|
2,360 |
|
Debit card income |
|
|
2,682 |
|
|
|
2,810 |
|
|
|
2,628 |
|
|
|
2,633 |
|
|
|
2,574 |
|
Mortgage banking |
|
|
310 |
|
|
|
428 |
|
|
|
562 |
|
|
|
722 |
|
|
|
801 |
|
Increase in value of bank-owned life insurance |
|
|
754 |
|
|
|
736 |
|
|
|
865 |
|
|
|
1,060 |
|
|
|
1,169 |
|
Net gain on acquisition and branch sales |
|
|
— |
|
|
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net gains (losses) from securities transactions |
|
|
(17 |
) |
|
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
Other |
|
|
2,452 |
|
|
|
2,538 |
|
|
|
2,405 |
|
|
|
2,305 |
|
|
|
546 |
|
Total non-interest income |
|
|
8,969 |
|
|
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
|
15,442 |
|
|
|
15,383 |
|
|
|
15,068 |
|
|
|
15,119 |
|
|
|
13,588 |
|
Net occupancy and equipment |
|
|
3,127 |
|
|
|
3,007 |
|
|
|
3,170 |
|
|
|
2,967 |
|
|
|
2,475 |
|
Data processing |
|
|
4,138 |
|
|
|
3,642 |
|
|
|
3,769 |
|
|
|
3,867 |
|
|
|
3,257 |
|
Professional fees |
|
|
1,265 |
|
|
|
1,111 |
|
|
|
1,171 |
|
|
|
1,565 |
|
|
|
1,076 |
|
Advertising and business development |
|
|
1,191 |
|
|
|
972 |
|
|
|
976 |
|
|
|
1,129 |
|
|
|
760 |
|
Telecommunications |
|
|
487 |
|
|
|
442 |
|
|
|
470 |
|
|
|
435 |
|
|
|
439 |
|
FDIC insurance |
|
|
340 |
|
|
|
260 |
|
|
|
180 |
|
|
|
360 |
|
|
|
465 |
|
Courier and postage |
|
|
436 |
|
|
|
489 |
|
|
|
423 |
|
|
|
389 |
|
|
|
344 |
|
Free nationwide ATM cost |
|
|
551 |
|
|
|
541 |
|
|
|
501 |
|
|
|
515 |
|
|
|
519 |
|
Amortization of core deposit intangibles |
|
|
957 |
|
|
|
1,111 |
|
|
|
1,050 |
|
|
|
1,080 |
|
|
|
1,030 |
|
Loan expense |
|
|
174 |
|
|
|
207 |
|
|
|
185 |
|
|
|
308 |
|
|
|
207 |
|
Other real estate owned |
|
|
188 |
|
|
|
14 |
|
|
|
(1 |
) |
|
|
617 |
|
|
|
(342 |
) |
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
372 |
|
Merger expenses |
|
|
115 |
|
|
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
Other |
|
|
3,825 |
|
|
|
4,169 |
|
|
|
2,174 |
|
|
|
5,176 |
|
|
|
2,484 |
|
Total non-interest expense |
|
|
32,236 |
|
|
|
31,436 |
|
|
|
29,459 |
|
|
|
38,089 |
|
|
|
30,689 |
|
Income (loss) before income tax |
|
|
18,813 |
|
|
|
16,943 |
|
|
|
19,264 |
|
|
|
10,450 |
|
|
|
15,059 |
|
Provision for income taxes (benefit) |
|
|
3,642 |
|
|
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
15,171 |
|
|
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
Basic earnings (loss) per share |
|
$ |
0.94 |
|
|
$ |
0.95 |
|
|
$ |
0.94 |
|
|
$ |
0.62 |
|
|
$ |
0.82 |
|
Diluted earnings (loss) per share |
|
$ |
0.93 |
|
|
$ |
0.94 |
|
|
$ |
0.93 |
|
|
$ |
0.61 |
|
|
$ |
0.80 |
|
Weighted average common shares |
|
|
16,056,658 |
|
|
|
16,206,978 |
|
|
|
16,652,556 |
|
|
|
16,865,167 |
|
|
|
14,384,302 |
|
Weighted average diluted common shares |
|
|
16,273,231 |
|
|
|
16,413,248 |
|
|
|
16,869,152 |
|
|
|
17,141,174 |
|
|
|
14,669,312 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks |
|
$ |
155,039 |
|
|
$ |
103,126 |
|
|
$ |
89,764 |
|
|
$ |
259,131 |
|
|
$ |
141,645 |
|
Federal funds sold |
|
|
374 |
|
|
|
458 |
|
|
|
286 |
|
|
|
823 |
|
|
|
673 |
|
Cash and cash equivalents |
|
|
155,413 |
|
|
|
103,584 |
|
|
|
90,050 |
|
|
|
259,954 |
|
|
|
142,318 |
|
Available-for-sale securities |
|
|
1,198,962 |
|
|
|
1,288,180 |
|
|
|
1,352,894 |
|
|
|
1,327,442 |
|
|
|
1,157,423 |
|
Loans held for sale |
|
|
1,518 |
|
|
|
1,714 |
|
|
|
1,575 |
|
|
|
4,214 |
|
|
|
4,108 |
|
Loans, net of allowance for credit losses(1) |
|
|
3,208,524 |
|
|
|
3,175,208 |
|
|
|
3,194,987 |
|
|
|
3,107,262 |
|
|
|
2,633,148 |
|
Other real estate owned, net |
|
|
10,412 |
|
|
|
12,969 |
|
|
|
9,897 |
|
|
|
9,523 |
|
|
|
10,267 |
|
Premises and equipment, net |
|
|
100,566 |
|
|
|
101,212 |
|
|
|
103,168 |
|
|
|
104,038 |
|
|
|
90,727 |
|
Bank-owned life insurance |
|
|
122,418 |
|
|
|
121,665 |
|
|
|
120,928 |
|
|
|
120,787 |
|
|
|
103,431 |
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
|
24,428 |
|
|
|
21,479 |
|
|
|
19,890 |
|
|
|
17,510 |
|
|
|
14,540 |
|
Interest receivable |
|
|
18,497 |
|
|
|
16,519 |
|
|
|
16,923 |
|
|
|
18,048 |
|
|
|
15,519 |
|
Goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
Core deposit intangibles, net |
|
|
11,598 |
|
|
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
Other |
|
|
94,978 |
|
|
|
93,971 |
|
|
|
100,016 |
|
|
|
99,509 |
|
|
|
47,223 |
|
Total assets |
|
$ |
5,000,415 |
|
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Demand |
|
$ |
1,217,094 |
|
|
$ |
1,194,863 |
|
|
$ |
1,255,793 |
|
|
$ |
1,244,117 |
|
|
$ |
984,436 |
|
Total non-interest-bearing deposits |
|
|
1,217,094 |
|
|
|
1,194,863 |
|
|
|
1,255,793 |
|
|
|
1,244,117 |
|
|
|
984,436 |
|
Demand, savings and money market |
|
|
2,335,847 |
|
|
|
2,445,545 |
|
|
|
2,511,478 |
|
|
|
2,522,289 |
|
|
|
2,092,849 |
|
Time |
|
|
673,670 |
|
|
|
651,363 |
|
|
|
612,399 |
|
|
|
653,598 |
|
|
|
585,492 |
|
Total interest-bearing deposits |
|
|
3,009,517 |
|
|
|
3,096,908 |
|
|
|
3,123,877 |
|
|
|
3,175,887 |
|
|
|
2,678,341 |
|
Total deposits |
|
|
4,226,611 |
|
|
|
4,291,771 |
|
|
|
4,379,670 |
|
|
|
4,420,004 |
|
|
|
3,662,777 |
|
Federal funds purchased and retail repurchase agreements |
|
|
47,443 |
|
|
|
52,750 |
|
|
|
48,199 |
|
|
|
56,006 |
|
|
|
39,137 |
|
Federal Home Loan Bank advances |
|
|
186,001 |
|
|
|
80,000 |
|
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
Subordinated debt |
|
|
96,263 |
|
|
|
96,135 |
|
|
|
96,010 |
|
|
|
95,885 |
|
|
|
88,030 |
|
Contractual obligations |
|
|
15,562 |
|
|
|
15,813 |
|
|
|
17,307 |
|
|
|
17,692 |
|
|
|
18,771 |
|
Interest payable and other liabilities |
|
|
32,729 |
|
|
|
37,572 |
|
|
|
35,422 |
|
|
|
47,413 |
|
|
|
36,804 |
|
Total liabilities |
|
|
4,604,609 |
|
|
|
4,574,041 |
|
|
|
4,626,608 |
|
|
|
4,637,000 |
|
|
|
3,845,519 |
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Common stock |
|
|
204 |
|
|
|
204 |
|
|
|
204 |
|
|
|
203 |
|
|
|
178 |
|
Additional paid-in capital |
|
|
482,668 |
|
|
|
480,897 |
|
|
|
480,106 |
|
|
|
478,862 |
|
|
|
392,321 |
|
Retained earnings |
|
|
130,114 |
|
|
|
116,576 |
|
|
|
102,632 |
|
|
|
88,324 |
|
|
|
79,226 |
|
Accumulated other comprehensive income (loss), net of tax |
|
|
(120,918 |
) |
|
|
(77,426 |
) |
|
|
(50,012 |
) |
|
|
1,776 |
|
|
|
9,475 |
|
Treasury stock |
|
|
(96,262 |
) |
|
|
(92,136 |
) |
|
|
(80,915 |
) |
|
|
(68,534 |
) |
|
|
(63,451 |
) |
Total stockholders’ equity |
|
|
395,806 |
|
|
|
428,115 |
|
|
|
452,015 |
|
|
|
500,631 |
|
|
|
417,749 |
|
Total liabilities and stockholders’ equity |
|
$ |
5,000,415 |
|
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
(1) Allowance for credit losses |
|
$ |
46,499 |
|
|
$ |
48,238 |
|
|
$ |
47,590 |
|
|
$ |
48,365 |
|
|
$ |
52,763 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
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, |
|
|||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||||
Loans Held For Investment by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial real estate |
|
$ |
1,655,646 |
|
|
$ |
1,643,068 |
|
|
$ |
1,552,134 |
|
|
$ |
1,486,148 |
|
|
$ |
1,308,707 |
|
Commercial and industrial |
|
|
607,722 |
|
|
|
578,899 |
|
|
|
629,181 |
|
|
|
567,497 |
|
|
|
569,513 |
|
Residential real estate |
|
|
573,431 |
|
|
|
578,936 |
|
|
|
613,928 |
|
|
|
638,087 |
|
|
|
490,633 |
|
Agricultural real estate |
|
|
200,415 |
|
|
|
197,938 |
|
|
|
198,844 |
|
|
|
198,330 |
|
|
|
138,793 |
|
Agricultural |
|
|
115,048 |
|
|
|
124,753 |
|
|
|
150,077 |
|
|
|
166,975 |
|
|
|
93,767 |
|
Consumer |
|
|
102,761 |
|
|
|
99,852 |
|
|
|
98,413 |
|
|
|
98,590 |
|
|
|
84,498 |
|
Total loans held-for-investment |
|
|
3,255,023 |
|
|
|
3,223,446 |
|
|
|
3,242,577 |
|
|
|
3,155,627 |
|
|
|
2,685,911 |
|
Allowance for credit losses |
|
|
(46,499 |
) |
|
|
(48,238 |
) |
|
|
(47,590 |
) |
|
|
(48,365 |
) |
|
|
(52,763 |
) |
Net loans held for investment |
|
$ |
3,208,524 |
|
|
$ |
3,175,208 |
|
|
$ |
3,194,987 |
|
|
$ |
3,107,262 |
|
|
$ |
2,633,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for credit losses on loans to total loans |
|
|
1.43 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.96 |
% |
Past due or nonaccrual loans to total loans |
|
|
0.94 |
% |
|
|
0.78 |
% |
|
|
0.82 |
% |
|
|
1.18 |
% |
|
|
2.78 |
% |
Nonperforming assets to total assets |
|
|
0.59 |
% |
|
|
0.74 |
% |
|
|
0.74 |
% |
|
|
1.28 |
% |
|
|
1.74 |
% |
Nonperforming assets to total loans plus other |
|
|
0.91 |
% |
|
|
1.14 |
% |
|
|
1.15 |
% |
|
|
2.07 |
% |
|
|
2.76 |
% |
Classified assets to bank total regulatory capital |
|
|
11.03 |
% |
|
|
13.08 |
% |
|
|
17.12 |
% |
|
|
25.34 |
% |
|
|
24.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Selected Average Balance Sheet Data (QTD Average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Investment securities |
|
$ |
1,272,414 |
|
|
$ |
1,319,099 |
|
|
$ |
1,397,421 |
|
|
$ |
1,330,267 |
|
|
$ |
1,061,178 |
|
Total gross loans receivable |
|
|
3,240,998 |
|
|
|
3,216,853 |
|
|
|
3,195,787 |
|
|
|
3,181,279 |
|
|
|
2,748,202 |
|
Interest-earning assets |
|
|
4,602,568 |
|
|
|
4,675,967 |
|
|
|
4,715,389 |
|
|
|
4,713,817 |
|
|
|
4,005,509 |
|
Total assets |
|
|
4,988,755 |
|
|
|
5,067,686 |
|
|
|
5,108,120 |
|
|
|
5,068,278 |
|
|
|
4,275,298 |
|
Interest-bearing deposits |
|
|
3,081,245 |
|
|
|
3,112,300 |
|
|
|
3,163,777 |
|
|
|
3,101,657 |
|
|
|
2,702,040 |
|
Borrowings |
|
|
221,514 |
|
|
|
238,062 |
|
|
|
160,094 |
|
|
|
165,941 |
|
|
|
132,581 |
|
Total interest-bearing liabilities |
|
|
3,302,759 |
|
|
|
3,350,362 |
|
|
|
3,323,871 |
|
|
|
3,267,598 |
|
|
|
2,834,621 |
|
Total deposits |
|
|
4,283,855 |
|
|
|
4,340,196 |
|
|
|
4,393,879 |
|
|
|
4,342,732 |
|
|
|
3,686,169 |
|
Total liabilities |
|
|
4,552,564 |
|
|
|
4,630,204 |
|
|
|
4,615,521 |
|
|
|
4,505,232 |
|
|
|
3,852,419 |
|
Total stockholders' equity |
|
|
436,191 |
|
|
|
437,483 |
|
|
|
492,599 |
|
|
|
563,046 |
|
|
|
422,879 |
|
Tangible common equity* |
|
|
369,746 |
|
|
|
368,505 |
|
|
|
422,418 |
|
|
|
501,860 |
|
|
|
376,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Return on average assets (ROAA) annualized |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
Return on average assets before income tax and |
|
|
1.49 |
% |
|
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
Return on average equity (ROAE) annualized |
|
|
13.80 |
% |
|
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
Return on average equity before income tax and |
|
|
16.99 |
% |
|
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
Return on average tangible common equity |
|
|
17.12 |
% |
|
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
Yield on loans annualized |
|
|
5.09 |
% |
|
|
4.59 |
% |
|
|
4.61 |
% |
|
|
4.36 |
% |
|
|
5.43 |
% |
Cost of interest-bearing deposits annualized |
|
|
0.57 |
% |
|
|
0.28 |
% |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.28 |
% |
Cost of total deposits annualized |
|
|
0.41 |
% |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.20 |
% |
Net interest margin annualized |
|
|
3.62 |
% |
|
|
3.39 |
% |
|
|
3.38 |
% |
|
|
3.13 |
% |
|
|
3.86 |
% |
Efficiency ratio* |
|
|
63.07 |
% |
|
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
Non-interest income / average assets |
|
|
0.71 |
% |
|
|
0.76 |
% |
|
|
0.72 |
% |
|
|
0.72 |
% |
|
|
0.73 |
% |
Non-interest expense / average assets |
|
|
2.56 |
% |
|
|
2.49 |
% |
|
|
2.34 |
% |
|
|
2.98 |
% |
|
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tier 1 Leverage Ratio |
|
|
9.46 |
% |
|
|
9.11 |
% |
|
|
9.07 |
% |
|
|
9.09 |
% |
|
|
9.02 |
% |
Common Equity Tier 1 Capital Ratio |
|
|
12.15 |
% |
|
|
12.08 |
% |
|
|
11.81 |
% |
|
|
12.03 |
% |
|
|
12.39 |
% |
Tier 1 Risk Based Capital Ratio |
|
|
12.77 |
% |
|
|
12.71 |
% |
|
|
12.43 |
% |
|
|
12.67 |
% |
|
|
12.90 |
% |
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
Total Risk Based Capital Ratio |
|
|
15.99 |
% |
|
|
15.97 |
% |
|
|
15.66 |
% |
|
|
15.96 |
% |
|
|
16.63 |
% |
Total stockholders' equity to total assets |
|
|
7.92 |
% |
|
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
Tangible common equity to tangible assets* |
|
|
6.68 |
% |
|
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
Dividend payout ratio |
|
|
10.78 |
% |
|
|
8.61 |
% |
|
|
8.58 |
% |
|
|
13.05 |
% |
|
|
9.96 |
% |
Book value per common share |
|
$ |
24.71 |
|
|
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
Tangible book value per common share* |
|
$ |
20.59 |
|
|
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
Tangible book value per diluted common share* |
|
$ |
20.33 |
|
|
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
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, 2022 |
|
|
September 30, 2021 |
|
||||||||||||||||||
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average |
|
||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial |
$ |
579,610 |
|
|
$ |
22,994 |
|
|
|
5.30 |
% |
|
$ |
752,795 |
|
|
$ |
34,609 |
|
|
|
6.15 |
% |
Commercial real estate |
|
1,236,282 |
|
|
|
45,995 |
|
|
|
4.97 |
% |
|
|
990,803 |
|
|
|
34,943 |
|
|
|
4.72 |
% |
Real estate construction |
|
362,543 |
|
|
|
12,443 |
|
|
|
4.59 |
% |
|
|
264,344 |
|
|
|
7,195 |
|
|
|
3.64 |
% |
Residential real estate |
|
604,218 |
|
|
|
16,336 |
|
|
|
3.61 |
% |
|
|
457,761 |
|
|
|
14,167 |
|
|
|
4.14 |
% |
Agricultural real estate |
|
201,566 |
|
|
|
8,046 |
|
|
|
5.34 |
% |
|
|
135,795 |
|
|
|
5,203 |
|
|
|
5.12 |
% |
Agricultural |
|
132,485 |
|
|
|
5,254 |
|
|
|
5.30 |
% |
|
|
93,680 |
|
|
|
3,432 |
|
|
|
4.90 |
% |
Consumer |
|
101,341 |
|
|
|
3,642 |
|
|
|
4.80 |
% |
|
|
84,285 |
|
|
|
2,843 |
|
|
|
4.51 |
% |
Total loans |
|
3,218,045 |
|
|
|
114,710 |
|
|
|
4.77 |
% |
|
|
2,779,463 |
|
|
|
102,392 |
|
|
|
4.93 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable securities |
|
1,220,045 |
|
|
|
16,767 |
|
|
|
1.84 |
% |
|
|
898,461 |
|
|
|
11,242 |
|
|
|
1.67 |
% |
Nontaxable securities |
|
109,142 |
|
|
|
2,020 |
|
|
|
2.47 |
% |
|
|
100,495 |
|
|
|
2,096 |
|
|
|
2.79 |
% |
Total securities |
|
1,329,187 |
|
|
|
18,787 |
|
|
|
1.89 |
% |
|
|
998,956 |
|
|
|
13,338 |
|
|
|
1.79 |
% |
Federal funds sold and other |
|
116,997 |
|
|
|
1,327 |
|
|
|
1.52 |
% |
|
|
175,761 |
|
|
|
846 |
|
|
|
0.64 |
% |
Total interest-earning assets |
$ |
4,664,229 |
|
|
|
134,824 |
|
|
|
3.86 |
% |
|
$ |
3,954,180 |
|
|
|
116,576 |
|
|
|
3.94 |
% |
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand savings and money market deposits |
$ |
2,480,113 |
|
|
|
5,461 |
|
|
|
0.29 |
% |
|
$ |
2,076,643 |
|
|
|
2,728 |
|
|
|
0.18 |
% |
Time deposits |
|
638,692 |
|
|
|
2,847 |
|
|
|
0.60 |
% |
|
|
606,151 |
|
|
|
3,588 |
|
|
|
0.79 |
% |
Total interest-bearing deposits |
|
3,118,805 |
|
|
|
8,308 |
|
|
|
0.36 |
% |
|
|
2,682,794 |
|
|
|
6,316 |
|
|
|
0.31 |
% |
FHLB advances |
|
54,100 |
|
|
|
594 |
|
|
|
1.47 |
% |
|
|
16,325 |
|
|
|
155 |
|
|
|
1.27 |
% |
Other borrowings |
|
152,682 |
|
|
|
5,123 |
|
|
|
4.49 |
% |
|
|
131,516 |
|
|
|
4,741 |
|
|
|
4.82 |
% |
Total interest-bearing liabilities |
$ |
3,325,587 |
|
|
|
14,025 |
|
|
|
0.56 |
% |
|
$ |
2,830,635 |
|
|
|
11,212 |
|
|
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
120,799 |
|
|
|
|
|
|
|
|
$ |
105,364 |
|
|
|
|
||||
Interest rate spread |
|
|
|
|
|
|
|
3.30 |
% |
|
|
|
|
|
|
|
|
3.41 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin (2) |
|
|
|
|
|
|
|
3.46 |
% |
|
|
|
|
|
|
|
|
3.56 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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 – 10/18/2022
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, 2022 |
|
|
September 30, 2021 |
|
||||||||||||||||||
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average |
|
||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial |
$ |
575,149 |
|
|
$ |
7,750 |
|
|
|
5.35 |
% |
|
$ |
630,622 |
|
|
$ |
13,646 |
|
|
|
8.59 |
% |
Commercial real estate |
|
1,307,244 |
|
|
|
18,023 |
|
|
|
5.47 |
% |
|
|
1,009,141 |
|
|
|
12,072 |
|
|
|
4.75 |
% |
Real estate construction |
|
360,579 |
|
|
|
4,847 |
|
|
|
5.33 |
% |
|
|
283,106 |
|
|
|
2,664 |
|
|
|
3.73 |
% |
Residential real estate |
|
582,938 |
|
|
|
5,464 |
|
|
|
3.72 |
% |
|
|
512,135 |
|
|
|
5,073 |
|
|
|
3.93 |
% |
Agricultural real estate |
|
200,534 |
|
|
|
2,740 |
|
|
|
5.42 |
% |
|
|
134,673 |
|
|
|
1,819 |
|
|
|
5.36 |
% |
Agricultural |
|
113,351 |
|
|
|
1,406 |
|
|
|
4.92 |
% |
|
|
91,878 |
|
|
|
1,370 |
|
|
|
5.92 |
% |
Consumer |
|
101,203 |
|
|
|
1,325 |
|
|
|
5.20 |
% |
|
|
86,647 |
|
|
|
937 |
|
|
|
4.29 |
% |
Total loans |
|
3,240,998 |
|
|
|
41,555 |
|
|
|
5.09 |
% |
|
|
2,748,202 |
|
|
|
37,581 |
|
|
|
5.43 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable securities |
|
1,164,697 |
|
|
|
5,793 |
|
|
|
1.97 |
% |
|
|
966,651 |
|
|
|
3,920 |
|
|
|
1.61 |
% |
Nontaxable securities |
|
107,717 |
|
|
|
687 |
|
|
|
2.53 |
% |
|
|
94,527 |
|
|
|
655 |
|
|
|
2.75 |
% |
Total securities |
|
1,272,414 |
|
|
|
6,480 |
|
|
|
2.02 |
% |
|
|
1,061,178 |
|
|
|
4,575 |
|
|
|
1.71 |
% |
Federal funds sold and other |
|
89,156 |
|
|
|
513 |
|
|
|
2.29 |
% |
|
|
196,129 |
|
|
|
290 |
|
|
|
0.59 |
% |
Total interest-earning assets |
$ |
4,602,568 |
|
|
|
48,548 |
|
|
|
4.18 |
% |
|
$ |
4,005,509 |
|
|
|
42,446 |
|
|
|
4.20 |
% |
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand savings and money market deposits |
$ |
2,425,824 |
|
|
|
3,118 |
|
|
|
0.51 |
% |
|
$ |
2,082,515 |
|
|
|
862 |
|
|
|
0.16 |
% |
Time deposits |
|
655,421 |
|
|
|
1,285 |
|
|
|
0.78 |
% |
|
|
619,525 |
|
|
|
1,019 |
|
|
|
0.65 |
% |
Total interest-bearing deposits |
|
3,081,245 |
|
|
|
4,403 |
|
|
|
0.57 |
% |
|
|
2,702,040 |
|
|
|
1,881 |
|
|
|
0.28 |
% |
FHLB advances |
|
71,415 |
|
|
|
409 |
|
|
|
2.27 |
% |
|
|
1,401 |
|
|
|
10 |
|
|
|
2.78 |
% |
Other borrowings |
|
150,099 |
|
|
|
1,792 |
|
|
|
4.74 |
% |
|
|
131,180 |
|
|
|
1,580 |
|
|
|
4.78 |
% |
Total interest-bearing liabilities |
$ |
3,302,759 |
|
|
|
6,604 |
|
|
|
0.79 |
% |
|
$ |
2,834,621 |
|
|
|
3,471 |
|
|
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
41,944 |
|
|
|
|
|
|
|
|
$ |
38,975 |
|
|
|
|
||||
Interest rate spread |
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
3.71 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin (2) |
|
|
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
3.86 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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 – 10/18/2022
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, 2022 |
|
|
June 30, 2022 |
|
||||||||||||||||||
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
Average |
|
||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial |
$ |
575,149 |
|
|
$ |
7,750 |
|
|
|
5.35 |
% |
|
$ |
588,126 |
|
|
$ |
7,483 |
|
|
|
5.10 |
% |
Commercial real estate |
|
1,307,244 |
|
|
|
18,023 |
|
|
|
5.47 |
% |
|
|
1,210,185 |
|
|
|
14,521 |
|
|
|
4.81 |
% |
Real estate construction |
|
360,579 |
|
|
|
4,847 |
|
|
|
5.33 |
% |
|
|
384,317 |
|
|
|
4,297 |
|
|
|
4.48 |
% |
Residential real estate |
|
582,938 |
|
|
|
5,464 |
|
|
|
3.72 |
% |
|
|
597,680 |
|
|
|
5,206 |
|
|
|
3.49 |
% |
Agricultural real estate |
|
200,534 |
|
|
|
2,740 |
|
|
|
5.42 |
% |
|
|
202,038 |
|
|
|
2,643 |
|
|
|
5.25 |
% |
Agricultural |
|
113,351 |
|
|
|
1,406 |
|
|
|
4.92 |
% |
|
|
134,826 |
|
|
|
1,533 |
|
|
|
4.56 |
% |
Consumer |
|
101,203 |
|
|
|
1,325 |
|
|
|
5.20 |
% |
|
|
99,680 |
|
|
|
1,166 |
|
|
|
4.69 |
% |
Total loans |
|
3,240,998 |
|
|
|
41,555 |
|
|
|
5.09 |
% |
|
|
3,216,852 |
|
|
|
36,849 |
|
|
|
4.59 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable securities |
|
1,164,697 |
|
|
|
5,793 |
|
|
|
1.97 |
% |
|
|
1,210,828 |
|
|
|
5,584 |
|
|
|
1.85 |
% |
Nontaxable securities |
|
107,717 |
|
|
|
687 |
|
|
|
2.53 |
% |
|
|
108,271 |
|
|
|
678 |
|
|
|
2.51 |
% |
Total securities |
|
1,272,414 |
|
|
|
6,480 |
|
|
|
2.02 |
% |
|
|
1,319,099 |
|
|
|
6,262 |
|
|
|
1.90 |
% |
Federal funds sold and other |
|
89,156 |
|
|
|
513 |
|
|
|
2.29 |
% |
|
|
140,016 |
|
|
|
513 |
|
|
|
1.47 |
% |
Total interest-earning assets |
$ |
4,602,568 |
|
|
|
48,548 |
|
|
|
4.18 |
% |
|
$ |
4,675,967 |
|
|
|
43,624 |
|
|
|
3.74 |
% |
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand savings and money market deposits |
$ |
2,425,824 |
|
|
|
3,118 |
|
|
|
0.51 |
% |
|
$ |
2,481,602 |
|
|
|
1,346 |
|
|
|
0.22 |
% |
Time deposits |
|
655,421 |
|
|
|
1,285 |
|
|
|
0.78 |
% |
|
|
630,698 |
|
|
|
837 |
|
|
|
0.53 |
% |
Total interest-bearing deposits |
|
3,081,245 |
|
|
|
4,403 |
|
|
|
0.57 |
% |
|
|
3,112,300 |
|
|
|
2,183 |
|
|
|
0.28 |
% |
FHLB advances |
|
71,415 |
|
|
|
409 |
|
|
|
2.27 |
% |
|
|
80,266 |
|
|
|
176 |
|
|
|
0.88 |
% |
Other borrowings |
|
150,099 |
|
|
|
1,792 |
|
|
|
4.74 |
% |
|
|
157,796 |
|
|
|
1,699 |
|
|
|
4.32 |
% |
Total interest-bearing liabilities |
$ |
3,302,759 |
|
|
|
6,604 |
|
|
|
0.79 |
% |
|
$ |
3,350,362 |
|
|
|
4,058 |
|
|
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
41,944 |
|
|
|
|
|
|
|
|
$ |
39,566 |
|
|
|
|
||||
Interest rate spread |
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
3.25 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin (2) |
|
|
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
3.39 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(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 – 10/18/2022
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, |
|
|||||
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total stockholders' equity |
|
$ |
395,806 |
|
|
$ |
428,115 |
|
|
$ |
452,015 |
|
|
$ |
500,631 |
|
|
$ |
417,749 |
|
Less: goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
Less: core deposit intangibles, net |
|
|
11,598 |
|
|
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
Less: mortgage servicing rights, net |
|
|
201 |
|
|
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
Less: naming rights, net |
|
|
1,054 |
|
|
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
Tangible common equity |
|
$ |
329,852 |
|
|
$ |
361,169 |
|
|
$ |
382,393 |
|
|
$ |
429,924 |
|
|
$ |
372,087 |
|
Common shares outstanding at period end |
|
|
16,017,834 |
|
|
|
16,106,818 |
|
|
|
16,454,966 |
|
|
|
16,760,115 |
|
|
|
14,365,785 |
|
Diluted common shares outstanding at period end |
|
|
16,225,591 |
|
|
|
16,289,635 |
|
|
|
16,662,779 |
|
|
|
17,050,115 |
|
|
|
14,637,306 |
|
Book value per common share |
|
$ |
24.71 |
|
|
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
Tangible book value per common share |
|
$ |
20.59 |
|
|
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
Tangible book value per diluted common share |
|
$ |
20.33 |
|
|
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets |
|
$ |
5,000,415 |
|
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
Less: goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
Less: core deposit intangibles, net |
|
|
11,598 |
|
|
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
Less: mortgage servicing rights, net |
|
|
201 |
|
|
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
Less: naming rights, net |
|
|
1,054 |
|
|
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
Tangible assets |
|
$ |
4,934,461 |
|
|
$ |
4,935,210 |
|
|
$ |
5,009,001 |
|
|
$ |
5,066,924 |
|
|
$ |
4,217,606 |
|
Total stockholders' equity to total assets |
|
|
7.92 |
% |
|
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
Tangible common equity to tangible assets |
|
|
6.68 |
% |
|
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total average stockholders' equity |
|
$ |
436,191 |
|
|
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,046 |
|
|
$ |
422,879 |
|
Less: average intangible assets |
|
|
66,445 |
|
|
|
68,978 |
|
|
|
70,181 |
|
|
|
61,186 |
|
|
|
46,335 |
|
Average tangible common equity |
|
$ |
369,746 |
|
|
$ |
368,505 |
|
|
$ |
422,418 |
|
|
$ |
501,860 |
|
|
$ |
376,544 |
|
Net income (loss) allocable to common stockholders |
|
$ |
15,171 |
|
|
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
Add: amortization of intangible assets |
|
|
992 |
|
|
|
1,148 |
|
|
|
1,085 |
|
|
|
1,116 |
|
|
|
1,040 |
|
Less: tax effect of intangible assets amortization |
|
|
208 |
|
|
|
241 |
|
|
|
228 |
|
|
|
234 |
|
|
|
218 |
|
Adjusted net income (loss) allocable to common |
|
$ |
15,955 |
|
|
$ |
16,166 |
|
|
$ |
16,507 |
|
|
$ |
11,348 |
|
|
$ |
12,595 |
|
Return on total average stockholders' equity |
|
|
13.80 |
% |
|
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
Return on average tangible common equity |
|
|
17.12 |
% |
|
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Non-interest expense |
|
$ |
32,236 |
|
|
$ |
31,436 |
|
|
$ |
29,459 |
|
|
$ |
38,089 |
|
|
$ |
30,689 |
|
Less: loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
372 |
|
Less: merger expense |
|
|
115 |
|
|
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
Adjusted non-interest expense |
|
$ |
32,121 |
|
|
$ |
31,348 |
|
|
$ |
29,136 |
|
|
$ |
33,527 |
|
|
$ |
26,302 |
|
Net interest income |
|
$ |
41,944 |
|
|
$ |
39,566 |
|
|
$ |
39,289 |
|
|
$ |
37,215 |
|
|
$ |
38,975 |
|
Non-interest income |
|
|
8,969 |
|
|
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
Less: net gain on acquisition and branch sales |
|
|
— |
|
|
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: net gains (losses) from securities transactions |
|
|
(17 |
) |
|
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
Adjusted non-interest income |
|
$ |
8,986 |
|
|
$ |
9,129 |
|
|
$ |
8,982 |
|
|
$ |
9,191 |
|
|
$ |
7,450 |
|
Net interest income plus adjusted non-interest income |
|
$ |
50,930 |
|
|
$ |
48,695 |
|
|
$ |
48,271 |
|
|
$ |
46,406 |
|
|
$ |
46,425 |
|
Non-interest expense to |
|
|
63.32 |
% |
|
|
63.89 |
% |
|
|
60.98 |
% |
|
|
82.06 |
% |
|
|
65.57 |
% |
Efficiency ratio |
|
|
63.07 |
% |
|
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
Net income (loss) allocable to common stockholders |
|
$ |
15,171 |
|
|
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
Add: income tax provision |
|
|
3,642 |
|
|
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
Add: provision (reversal) of credit losses |
|
|
(136 |
) |
|
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
Equity Bancshares, Inc.
PRESS RELEASE – 10/18/2022
Pre-tax, pre-provision income |
|
$ |
18,677 |
|
|
$ |
17,767 |
|
|
$ |
18,852 |
|
|
$ |
8,325 |
|
|
$ |
16,117 |
|
Total average assets |
|
$ |
4,988,755 |
|
|
$ |
5,067,687 |
|
|
$ |
5,108,120 |
|
|
$ |
5,068,301 |
|
|
$ |
4,275,298 |
|
Total average stockholders' equity |
|
$ |
436,191 |
|
|
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,023 |
|
|
$ |
422,879 |
|
Return on average assets (ROAA) annualized |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
Adjusted return on average assets |
|
|
1.49 |
% |
|
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
Adjusted return on average equity |
|
|
16.99 |
% |
|
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
Third Quarter 2022 Earnings Presentation 10/19/2022 Exhibit 99.2
Forward Looking Statements This presentation 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 the management of Equity Bancshares, Inc. (“Equity”, “we”, “us”, “our, “company”) 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, except as required by law. 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.
Our Company 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. Completed 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
Q3 2022 Financial Highlights Net Income $15.2M Diluted EPS $0.93 Total Deposits $4.2B Gross Loans $3.3B Core revenue growth lead by expanding NIM Diluted EPS of $0.93, adjusted diluted EPS of $0.94(1) Net Income of $15.2 million, adjusted net income of $15.3 million(1) Total revenue of $50.9 million Net Interest Margin of 3.62%, up 23bps from linked quarter Cost of interest-bearing deposits of 0.57% Loan growth of $31.6 million, or 3.9% annualized, C&I and CRE have grown at an annualized rate of 17.1% year to date NIB deposits up $22.2 million, and now represent 28.8% of total deposits ROAA of 1.21%, PTPP ROAA of 1.49%(2), ROATCE of 17.12%(2) TCE / TA of 6.68%(2), TCE excluding AOCI / TA of 8.92%(2) Non-GAAP financial measure. Refer to the reconciliation on slide 5. Non-GAAP financial measure. Refer to the non-GAAP reconciliation at the end of this presentation.
Core Earnings per Share Quarterly Results Utilizes the quarterly effective tax rate.
Net Interest Margin Key Net Interest Margin Drivers Non-Interest Bearing Deposits Non-interest bearing deposits now constitute 28.8% of total deposits. Loan / Deposit ratio increased each of the last four periods Day Count Day count in Q3 2022 vs Q2 2022 increased net interest income roughly $456 thousand Loan Yield Loan yield is up 50bps linked quarter, as we continue to originate higher yielding credits and benefit from repricing of adjustable rates Rate Protection Proactive effort to book variable rate assets subject to floor levels. 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
Revenue Trends Quarterly Results Excludes the impact of PPP loans. Including these balances in the third and fourth quarter 2021 and first, second and third quarter 2022 results would be 3.86%, 3.13%, 3.38%, 3.39% and 3.62% respectively. Excludes the impact of PPP loans. Including these balances in the third and fourth quarter 2021 and first, second and third quarter 2022 results would be $38,975, $37,215, $39,289, $39,566 and $41,944, respectively. Excludes the impact of net gain on acquisition and net gain / (loss) on securities transactions. Including these balances in the third and fourth quarter 2021 and first, second and third quarter 2022 results would be $7,831, $9,199, $9,022, $9,637, and $8,969, respectively (2) (1) (3) (2,3)
Performance Metrics 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. Pre-Tax, Pre-Provision ROAA(1) TCE / TA excluding AOCI(1)
Strong Core Deposit Franchise Current Deposit Composition Core Deposits(1) / Total Deposits Trending Deposit Composition & Loan to Deposit Ratio Core deposits excludes time deposits > $100K. Dollars in millions. Cost of Deposits 0.20% 0.18% 0.16% 0.20% 0.41%
Asset Quality Trends – Annual 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) Total Reserve Ratio Classified Assets
Asset Quality Trends - Quarterly 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) Total Reserve Ratio Classified Assets
Diversified Loan Portfolio Quarter-to-Date Loan Yield 4.56% 4.54% 4.20% 4.54% 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. Excludes the impact of PPP loans. Including these balances in the third and fourth quarter 2021 and first, second and third quarter 2022 results would be 5.43%, 4.36%, 4.61%, 4.59% and 5.09% respectively. 5.09%
Allowance for Credit Loss (ACL) ACL intra-quarter movement Loan Classification ACL Loans ACL / Loans (%) Commercial Real Estate 20,348 1,655,646 1.23% Commercial & Industrial 13,416 607,722 2.21% Residential Real Estate 7,260 573,431 1.27% Agricultural Real Estate 1,048 200,415 0.52% Agricultural 2,043 115,048 1.78% Consumer 2,385 102,761 2.32% Total 46,499 3,255,023 1.43%
Current Investment Portfolio Mix 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 fully extended; future cash flow expected to be little affected by higher rates Current weighted average life: 5.5 years; effective duration: 4.4 years Investment Portfolio Strategy 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 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
Tangible Book Value Tangible book value per share(1) decreased $1.83 in Q3 2022, due to unrealized losses in the investment portfolio Non-GAAP financial measure. Refer to the non-GAAP reconciliation at the end of this presentation.
Capital Management 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 9/30/2022 Capital Ratio Regulatory Well Capitalized Equity Bancshares, Inc Equity Bank Common Equity Tier 1 Ratio (CET 1) 7.0% 12.15% 14.13% Tier 1 Capital Ratio 8.5% 12.77% 14.13% Total Risk Based Capital Ratio 10.5% 15.99% 15.38% Leverage Ratio 5.0% 9.46% 10.47% Tangible Common Equity Ratio (non-GAAP)(1) ---- 6.68% --- 2022 Capital Management Actions Q1 2022 Dividend Declared - $0.08 per share Q2 2022 Dividend Declared - $0.08 per share Q3 2022 Dividend Declared - $0.10 per share Repurchased 127 thousand shares at a weighted average cost of $32.51 in the third quarter of 2022. Exhausted the repurchase plan expiring 10/29/2022, repurchasing 867 thousand shares at a weighted average cost of $31.98 in 2022. Received Board approval and Regulatory non-objection for a 1 million share repurchase plan beginning 10/1/2022. As of September 30, 2022, the tangible common equity ratio is being negatively impacted by ($120.9) million in accumulated other comprehensive income. Adjusting for this decline in fair value, which management views as temporary, would result in a Tangible Common Equity Ratio of 8.92%.
Outlook on Key Business Drivers 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 $17K Excluding Merger Expenses of $115K Representative of year-to-date annual effective tax rate Key Driver Q3’22 Outlook Q3’22 Results Q4’22 Outlook FY’23 Outlook Average Deposits $4,300-4,400M $4,284M $4,250-4,350M $4,350-4,450M Average Loans(1) $3,100-$3,300M $3,241M $3,200-$3,300M $3,350-$3,450M Average Earning Assets(1) $4,650-$4,750M $4,603M $4,600-$4,700M $4,700-$4,800M Net Interest Margin 3.40-3.50% 3.62% 3.60-3.70% 3.50-3.60% Non-Interest Income(2) $8.0-8.5M $9.0M $8.0-8.5M $34.0-36.0M Non-Interest Expense(3) $31-32M $32.1M $33-35M $130-132M Annual Effective Tax Rate(4) 14-16% 16.2% 15-17% 16-18%
Focus Variables for Outlook & Forecast Our outlook requires clarity around certain variables, including: Economic Environment Business activity creates opportunity for lending and deposit growth. Pandemic response and resolution will be significant driver. Customer Needs Directly related to credit quality as well as trust in our business. Stimulus efforts and associated effect may have significant impact. Cost of Funding Impacts rates on our product offerings and applies pressure to earnings. Must be able to manage cost and profit yields effectively. Competitive Market Providing customers with rates and services that are competitive with our peers. Irrational operators may have short term impact on opportunities. Investment Opportunities Growth strategy must be flexible to the other variables that affect our investment options. Political Environment U.S. politics affect banking regulations, international relationships, tax policies and more.
Non-GAAP Reconciliations
TCE to TA and Tangible Book Value per Share
ROATCE and Efficiency Ratio
ROAA and PTPP ROAA
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