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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): January 25, 2023

 

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 January 25, 2023 Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended December 31, 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 fourth quarter ended December 31, 2022, on Thursday, January 26, 2023, 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 fourth quarter ended December 31, 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

 

Earnings Press Release, Dated January 25, 2023

99.2

 

Equity Bancshares, Inc. Investor Presentation

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: January 25, 2023

By: /s/ Eric R. Newell

 

Eric R. Newell

 

Executive Vice President and Chief Financial Officer


 

2


EX-99.1 2 eqbk-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE

Equity Bancshares, Inc. Reports Fourth Quarter Results, Strong Organic Loan Growth, and Improved Asset Quality Metrics

 

Record full year income of $57.7 million; Net interest income of $42.0 million; Continued NIM expansion; and Ratio of Non-performing Assets to Assets falls to 37 basis points

 

WICHITA, Kansas, January 25, 2023 (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 $11.6 million and $0.72 earnings per diluted share for the quarter ended December 31, 2022. For the full year ending December 31, 2022, reported net income totaled $57.7 million or $3.51 per diluted share compared to $52.5 million or $3.43 per diluted share for the full year ending December 31, 2021.

 

"Our Company was able to deliver two records in 2022, first, record net income of $57.7 million and second, record revenue of $197.8 million. These achievements are a testament to the strength of our franchise despite economic uncertainty and changing consumer habits” said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc. “We’ve been able to offer competitive products and rely on our local market leadership to continue to add customer relationships based on value, convenience, and our brand. As we compete for business and consumer relationships, our teams continue working tirelessly to enhance our products and technology while delivering superior customer service.”

 

Mr. Elliott continued, “We also saw improvement in key credit ratios, including non-performing assets to total assets down to 0.37% from 1.28% year-over-year, thanks to the disciplined work of our bankers. We took the opportunity in 2022 to invest in our people and technology, allowing us to deliver best-in-class banking products and services into the future. Our Equity teams helped us earn regional honors like Best Places to Work by the Wichita Business Journal, and we were recognized as one of Newsweek’s Best Banks in the U.S. With our prudent loan underwriting standards, growing capital base, and diversified deposit portfolio, we are well positioned to continue to generate excellent financial results for our shareholders.”

 

Notable Items:

 

The Company’s loan growth, excluding PPP and branch sales, was $56.8 million, or 6.9% linked quarter annualized including 9.25% annualized growth within the commercial and commercial real estate portfolios. Loan growth for the full year of 2022 was $220.0 million or 9.5% as compared to year-end 2021.
Total FHLB borrowings declined $47.1 million during the quarter ending December 31, 2022 or 25.3% from $186 million at September 30, 2022. Deposits increased $15.2 million during the fourth quarter, or 0.4%.
Book Value per Common Share increased $1.03 linked quarter to $25.74, while Tangible Book Value per Common Share increased $1.08 to $21.67.
During the quarter, the Company realized linked period Net Interest Margin growth of 5 basis points, equating to record Net Interest Income of $42.0 million.
Equity repurchased $5.5 million of common stock representing 1.0% of shares outstanding as of the end of the third quarter.
During the quarter ending December 31, 2022, the ratio of non-performing assets to total assets improved 22bps linked quarter to 0.4%, and the ratio of Classified Assets to Bank Regulatory Capital improved to 10.0% from 11.0%.

 

 

Financial Results for the Quarter Ended December 31, 2022

 

Net income allocable to common stockholders was $11.6 million, or $0.72 per diluted share, for the three months ended December 31, 2022, as compared to $15.2 million, or $0.93 per diluted share, for the three months ended September 30, 2022.

 


 

Equity Bancshares, Inc.

PRESS RELEASE

The decrease during the quarter was primarily driven by an increase in non-interest expense of $3.0 million as the Company continued to invest in its people, processes and the communities we serve.

 

Net Interest Income

 

Net interest income was $42.0 million for the three months ended December 31, 2022, as compared to $41.9 million for the three months ended September 30, 2022, an increase of $87 thousand, or 0.2%. The yield on interest-earning assets increased 49 basis points to 4.7%. The cost of interest-bearing deposits increased by 48 basis points during the quarter, moving from 0.6% at September 30, 2022, to 1.1% at December 31, 2022.

 

During the quarter, the Company realized the benefit of an emphasis on re-positioning interest earning assets into the loan portfolio with realized expansion of loans as a percentage of average assets. While total average assets were down, driven by the impact of the fair value mark on the investment portfolio, average loans in total and as a percentage of earning assets increased, comprising 72.2% of average earnings assets during the quarter. The Company continues to expect repositioning of investment portfolio assets into the loan portfolio.

 

Average interest-bearing liabilities moved up slightly during the quarter as the Company experienced a minor compositional shift from noninterest-bearing deposits into interest bearing categories while also paying down the level of debt on the balance sheet. Overall deposit levels increased $15.2 million, or 1.4% annualized linked quarter.

 

Provision for Credit Losses

 

During the three months ended December 31, 2022, there was a net release of $151 thousand compared to a net release of $136 thousand in the previous quarter. The minimal release of provision for the quarter is the result of continued positive credit trends without realization of meaningful losses. The Company continues to estimate the allowance for credit loss with assumptions that anticipate slower 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 December 31, 2022, we had net charge-offs of $501 thousand as compared to $1.6 million for the three months ended September 30, 2022.

 

Non-Interest Income

 

Total non-interest income was $8.3 million for the three months ended December 31, 2022, as compared to $9.0 million for the three months ended September 30, 2022, or a decrease of 7.1%, quarter-over-quarter. The $640 thousand decrease was primarily due to a decrease in loan repurchase obligation reversal of $280 thousand, mortgage banking revenue of $194 thousand, and derivative fair valuation changes of $175 thousand.

 

Non-Interest Expense

 

Total non-interest expense for the quarter ended December 31, 2022, was $35.2 million as compared to $32.2 million for the quarter ended September 30, 2022. The $3.0 million change was primarily due to increases in advertising and business development of $712 thousand driven by deposit campaigns, salaries and employee benefits of $671 thousand reflecting higher full-time equivalents reducing our job vacancy rate, write-off of tax credit investments of $537 thousand and an unfavorable change in losses on disposal of repossessed assets of $343 thousand reflecting a $333 thousand gain recognized in the third quarter of 2022.

 

Income Tax Expense

 

At December 31, 2022, the full year effective tax rate for 2022 was 17.9% as compared to an expectation of 16.2% as of September 30, 2022. The comparative increase in tax rate resulted in $1.2 million in additive income tax expense during the fourth quarter calculated as the full year’s pre-tax income multiplied by the change in effective tax rate expectation.

 


 

Equity Bancshares, Inc.

PRESS RELEASE

 

The increase in the effective tax rate was driven by the Company’s investment in solar tax credits for which timing of implementation and credit receipt is not certain. During the quarter, the timing on one of the investments moved back compared to expectations as of the end of September, resulting in less credits being received in 2022. The timing issue is expected to be resolved in the first quarter of 2023 with no material impact to the overall return on the investment.

 

Loans, Total Assets and Funding

 

Loans held for investments were $3.3 billion at December 31, 2022, increasing 6.9% on an annualized basis compared to previous quarter end. Excluding the impact of PPP loans and loans sold in branch transactions, balances have increased $220.0 million, or 9.5% year-over-year. Included in the annual growth, is $301.7 million within the commercial and industrial and commercial real estate portfolios, or 15.0%. Total assets were $5.0 billion as of December 31, 2022.

 

Total deposits were $4.2 billion at December 31, 2022, increasing 1.4% annualized compared to previous quarter end. Of this balance, non-interesting bearing accounts comprise approximately 25.9%. Borrowings from the FHLB declined $47.1 million to $138.9 million during the quarter.

 

Asset Quality

 

As of December 31, 2022, Equity’s allowance for credit losses to total loans remained materially consistent at 1.4% as compared to September 30, 2022. Nonperforming assets were $18.2 million as of December 31, 2022, or 0.4% of total assets, compared to $29.7 million at September 30, 2022, or 0.6% of total assets. Non-accrual loans were $17.6 million at December 31, 2022, as compared to $23.1 million at September 30, 2022. Total classified assets, including loans rated special mention or worse, other real estate owned, excluding previous branch locations, and other repossessed assets were $58.7 million, or 10.0% of regulatory capital, down from $63.1 million, or 11.0% of regulatory capital as of September 30, 2022.

 

During the quarter ended December 31, 2022, non-performing assets decreased $11.4 million due to decreases in other real estate owned of $5.7 million, non-accrual loans of $5.5 million and other repossessed assets of $174 thousand.

 

Capital

 

During the quarter, the Company realized expansion in both book and tangible capital, as well as book and tangible capital per share as dividends and costs incurred to repurchase shares were outpaced by earnings and partial recovery of the negative fair value mark on the investment portfolio.

 

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.3%, the total capital to risk-weighted assets was 16.1% and the total leverage ratio was 9.6% at December 31, 2022. At September 30, 2022, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.2%, the total capital to risk-weighted assets ratio was 16.1% and the total leverage ratio was 9.5%.

 

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 15.7% and a total leverage ratio of 10.8% at December 31, 2022. At September 30, 2022, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 14.2%, the ratio of total capital to risk-weighted assets was 15.5% and the total leverage ratio was 10.5%.

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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 fourth quarter results on Thursday, January 26, 2023, 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 February 3, 2023, 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

 

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

Media Contact:

 

John J. Hanley

SVP, Senior Director of Marketing

Equity Bancshares, Inc.

(913) 583-8004

jhanley@equitybank.com

 

Unaudited Financial Tables

Table 1. Consolidated Statements of Income
Table 2. Quarterly Consolidated Statements of Income
Table 3. Consolidated Balance Sheets
Table 4. Selected Financial Highlights
Table 5. Year-To-Date Net Interest Income Analysis
Table 6. Quarter-To-Date Net Interest Income Analysis
Table 7. Quarter-Over-Quarter Net Interest Income Analysis
Table 8. Non-GAAP Financial Measures TABLE 1.

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

 

Three months ended
December 31,

 

 

Year ended
December 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

46,149

 

 

$

34,942

 

 

$

160,859

 

 

$

137,334

 

Securities, taxable

 

 

5,946

 

 

 

4,754

 

 

 

22,713

 

 

 

15,996

 

Securities, nontaxable

 

 

678

 

 

 

747

 

 

 

2,698

 

 

 

2,843

 

Federal funds sold and other

 

 

651

 

 

 

349

 

 

 

1,978

 

 

 

1,195

 

Total interest and dividend income

 

 

53,424

 

 

 

40,792

 

 

 

188,248

 

 

 

157,368

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

8,013

 

 

 

1,939

 

 

 

16,321

 

 

 

8,255

 

Federal funds purchased and retail repurchase agreements

 

 

82

 

 

 

32

 

 

 

232

 

 

 

104

 

Federal Home Loan Bank advances

 

 

1,500

 

 

 

14

 

 

 

2,094

 

 

 

169

 

Subordinated debt

 

 

1,798

 

 

 

1,592

 

 

 

6,771

 

 

 

6,261

 

Total interest expense

 

 

11,393

 

 

 

3,577

 

 

 

25,418

 

 

 

14,789

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

42,031

 

 

 

37,215

 

 

 

162,830

 

 

 

142,579

 

Provision (reversal) for credit losses

 

 

(151

)

 

 

(2,125

)

 

 

125

 

 

 

(8,480

)

Net interest income after provision (reversal) for credit losses

 

 

42,182

 

 

 

39,340

 

 

 

162,705

 

 

 

151,059

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,705

 

 

 

2,471

 

 

 

10,632

 

 

 

8,596

 

Debit card income

 

 

2,557

 

 

 

2,633

 

 

 

10,677

 

 

 

10,236

 

Mortgage banking

 

 

116

 

 

 

722

 

 

 

1,416

 

 

 

3,306

 

Increase in value of bank-owned life insurance

 

 

758

 

 

 

1,060

 

 

 

3,113

 

 

 

3,506

 

Net gain on acquisition and branch sales

 

 

422

 

 

 

 

 

 

962

 

 

 

585

 

Net gains (losses) from securities transactions

 

 

14

 

 

 

8

 

 

 

5

 

 

 

406

 

Other

 

 

1,757

 

 

 

2,305

 

 

 

9,152

 

 

 

6,207

 

Total non-interest income

 

 

8,329

 

 

 

9,199

 

 

 

35,957

 

 

 

32,842

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

16,113

 

 

 

15,119

 

 

 

62,006

 

 

 

54,198

 

Net occupancy and equipment

 

 

2,919

 

 

 

2,967

 

 

 

12,223

 

 

 

10,137

 

Data processing

 

 

4,334

 

 

 

3,867

 

 

 

15,883

 

 

 

13,261

 

Professional fees

 

 

1,404

 

 

 

1,565

 

 

 

4,951

 

 

 

4,713

 

Advertising and business development

 

 

1,903

 

 

 

1,129

 

 

 

5,042

 

 

 

3,370

 

Telecommunications

 

 

517

 

 

 

435

 

 

 

1,916

 

 

 

1,966

 

FDIC insurance

 

 

360

 

 

 

360

 

 

 

1,140

 

 

 

1,665

 

Courier and postage

 

 

533

 

 

 

389

 

 

 

1,881

 

 

 

1,429

 

Free nationwide ATM cost

 

 

510

 

 

 

515

 

 

 

2,103

 

 

 

2,019

 

Amortization of core deposit intangibles

 

 

924

 

 

 

1,080

 

 

 

4,042

 

 

 

4,174

 

Loan expense

 

 

262

 

 

 

308

 

 

 

828

 

 

 

934

 

Other real estate owned

 

 

388

 

 

 

617

 

 

 

589

 

 

 

(188

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

372

 

Merger expenses

 

 

68

 

 

 

4,562

 

 

 

594

 

 

 

9,189

 

Other

 

 

5,014

 

 

 

5,176

 

 

 

15,182

 

 

 

12,226

 

Total non-interest expense

 

 

35,249

 

 

 

38,089

 

 

 

128,380

 

 

 

119,465

 

Income (loss) before income tax

 

 

15,262

 

 

 

10,450

 

 

 

70,282

 

 

 

64,436

 

Provision for income taxes

 

 

3,654

 

 

 

(16

)

 

 

12,594

 

 

 

11,956

 

Net income (loss) and net income (loss) allocable to common stockholders

 

$

11,608

 

 

$

10,466

 

 

$

57,688

 

 

$

52,480

 

Basic earnings (loss) per share

 

$

0.73

 

 

$

0.62

 

 

$

3.56

 

 

$

3.49

 

Diluted earnings (loss) per share

 

$

0.72

 

 

$

0.61

 

 

$

3.51

 

 

$

3.43

 

Weighted average common shares

 

 

15,948,360

 

 

 

16,865,167

 

 

 

16,214,049

 

 

 

15,019,221

 

Weighted average diluted common shares

 

 

16,204,185

 

 

 

17,141,174

 

 

 

16,437,906

 

 

 

15,306,431

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

As of and for the three months ended

 

 

 

December 31,
2022

 

 

September 30,
2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

December 31,
2021

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

46,149

 

 

$

41,555

 

 

$

36,849

 

 

$

36,306

 

 

$

34,942

 

Securities, taxable

 

 

5,946

 

 

 

5,792

 

 

 

5,584

 

 

 

5,391

 

 

 

4,754

 

Securities, nontaxable

 

 

678

 

 

 

687

 

 

 

678

 

 

 

655

 

 

 

747

 

Federal funds sold and other

 

 

651

 

 

 

514

 

 

 

513

 

 

 

300

 

 

 

349

 

Total interest and dividend income

 

 

53,424

 

 

 

48,548

 

 

 

43,624

 

 

 

42,652

 

 

 

40,792

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

8,013

 

 

 

4,403

 

 

 

2,183

 

 

 

1,722

 

 

 

1,939

 

Federal funds purchased and retail repurchase agreements

 

 

82

 

 

 

71

 

 

 

46

 

 

 

33

 

 

 

32

 

Federal Home Loan Bank advances

 

 

1,500

 

 

 

409

 

 

 

176

 

 

 

9

 

 

 

14

 

Subordinated debt

 

 

1,798

 

 

 

1,721

 

 

 

1,653

 

 

 

1,599

 

 

 

1,592

 

Total interest expense

 

 

11,393

 

 

 

6,604

 

 

 

4,058

 

 

 

3,363

 

 

 

3,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

42,031

 

 

 

41,944

 

 

 

39,566

 

 

 

39,289

 

 

 

37,215

 

Provision (reversal) for credit losses

 

 

(151

)

 

 

(136

)

 

 

824

 

 

 

(412

)

 

 

(2,125

)

Net interest income after provision (reversal) for credit losses

 

 

42,182

 

 

 

42,080

 

 

 

38,742

 

 

 

39,701

 

 

 

39,340

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,705

 

 

 

2,788

 

 

 

2,617

 

 

 

2,522

 

 

 

2,471

 

Debit card income

 

 

2,557

 

 

 

2,682

 

 

 

2,810

 

 

 

2,628

 

 

 

2,633

 

Mortgage banking

 

 

116

 

 

 

310

 

 

 

428

 

 

 

562

 

 

 

722

 

Increase in value of bank-owned life insurance

 

 

758

 

 

 

754

 

 

 

736

 

 

 

865

 

 

 

1,060

 

Net gain on acquisition and branch sales

 

 

422

 

 

 

 

 

 

540

 

 

 

 

 

 

 

Net gains (losses) from securities transactions

 

 

14

 

 

 

(17

)

 

 

(32

)

 

 

40

 

 

 

8

 

Other

 

 

1,757

 

 

 

2,452

 

 

 

2,538

 

 

 

2,405

 

 

 

2,305

 

Total non-interest income

 

 

8,329

 

 

 

8,969

 

 

 

9,637

 

 

 

9,022

 

 

 

9,199

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

16,113

 

 

 

15,442

 

 

 

15,383

 

 

 

15,068

 

 

 

15,119

 

Net occupancy and equipment

 

 

2,919

 

 

 

3,127

 

 

 

3,007

 

 

 

3,170

 

 

 

2,967

 

Data processing

 

 

4,334

 

 

 

4,138

 

 

 

3,642

 

 

 

3,769

 

 

 

3,867

 

Professional fees

 

 

1,404

 

 

 

1,265

 

 

 

1,111

 

 

 

1,171

 

 

 

1,565

 

Advertising and business development

 

 

1,903

 

 

 

1,191

 

 

 

972

 

 

 

976

 

 

 

1,129

 

Telecommunications

 

 

517

 

 

 

487

 

 

 

442

 

 

 

470

 

 

 

435

 

FDIC insurance

 

 

360

 

 

 

340

 

 

 

260

 

 

 

180

 

 

 

360

 

Courier and postage

 

 

533

 

 

 

436

 

 

 

489

 

 

 

423

 

 

 

389

 

Free nationwide ATM cost

 

 

510

 

 

 

551

 

 

 

541

 

 

 

501

 

 

 

515

 

Amortization of core deposit intangibles

 

 

924

 

 

 

957

 

 

 

1,111

 

 

 

1,050

 

 

 

1,080

 

Loan expense

 

 

262

 

 

 

174

 

 

 

207

 

 

 

185

 

 

 

308

 

Other real estate owned

 

 

388

 

 

 

188

 

 

 

14

 

 

 

(1

)

 

 

617

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger expenses

 

 

68

 

 

 

115

 

 

 

88

 

 

 

323

 

 

 

4,562

 

Other

 

 

5,014

 

 

 

3,825

 

 

 

4,169

 

 

 

2,174

 

 

 

5,176

 

Total non-interest expense

 

 

35,249

 

 

 

32,236

 

 

 

31,436

 

 

 

29,459

 

 

 

38,089

 

Income (loss) before income tax

 

 

15,262

 

 

 

18,813

 

 

 

16,943

 

 

 

19,264

 

 

 

10,450

 

Provision for income taxes (benefit)

 

 

3,654

 

 

 

3,642

 

 

 

1,684

 

 

 

3,614

 

 

 

(16

)

Net income (loss) and net income (loss) allocable to common stockholders

 

$

11,608

 

 

$

15,171

 

 

$

15,259

 

 

$

15,650

 

 

$

10,466

 

Basic earnings (loss) per share

 

$

0.73

 

 

$

0.94

 

 

$

0.95

 

 

$

0.94

 

 

$

0.62

 

Diluted earnings (loss) per share

 

$

0.72

 

 

$

0.93

 

 

$

0.94

 

 

$

0.93

 

 

$

0.61

 

Weighted average common shares

 

 

15,948,360

 

 

 

16,056,658

 

 

 

16,206,978

 

 

 

16,652,556

 

 

 

16,865,167

 

Weighted average diluted common shares

 

 

16,204,185

 

 

 

16,273,231

 

 

 

16,413,248

 

 

 

16,869,152

 

 

 

17,141,174

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

 

 

December 31,
2022

 

 

September 30,
2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

December 31,
2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

101,662

 

 

$

155,039

 

 

$

103,126

 

 

$

89,764

 

 

$

259,131

 

Federal funds sold

 

 

415

 

 

 

374

 

 

 

458

 

 

 

286

 

 

 

823

 

Cash and cash equivalents

 

 

102,077

 

 

 

155,413

 

 

 

103,584

 

 

 

90,050

 

 

 

259,954

 

Available-for-sale securities

 

 

1,184,390

 

 

 

1,198,962

 

 

 

1,288,180

 

 

 

1,352,894

 

 

 

1,327,442

 

Held-to-maturity securities

 

 

1,948

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans held for sale

 

 

349

 

 

 

1,518

 

 

 

1,714

 

 

 

1,575

 

 

 

4,214

 

Loans, net of allowance for credit losses(1)

 

 

3,265,701

 

 

 

3,208,524

 

 

 

3,175,208

 

 

 

3,194,987

 

 

 

3,107,262

 

Other real estate owned, net

 

 

4,409

 

 

 

10,412

 

 

 

12,969

 

 

 

9,897

 

 

 

9,523

 

Premises and equipment, net

 

 

101,492

 

 

 

100,566

 

 

 

101,212

 

 

 

103,168

 

 

 

104,038

 

Bank-owned life insurance

 

 

123,176

 

 

 

122,418

 

 

 

121,665

 

 

 

120,928

 

 

 

120,787

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

21,695

 

 

 

24,428

 

 

 

21,479

 

 

 

19,890

 

 

 

17,510

 

Interest receivable

 

 

20,630

 

 

 

18,497

 

 

 

16,519

 

 

 

16,923

 

 

 

18,048

 

Goodwill

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

 

 

54,465

 

 

 

54,465

 

Core deposit intangibles, net

 

 

10,596

 

 

 

11,598

 

 

 

12,554

 

 

 

13,830

 

 

 

14,879

 

Other

 

 

92,087

 

 

 

94,978

 

 

 

93,971

 

 

 

100,016

 

 

 

99,509

 

Total assets

 

$

4,981,651

 

 

$

5,000,415

 

 

$

5,002,156

 

 

$

5,078,623

 

 

$

5,137,631

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

$

1,097,899

 

 

$

1,217,094

 

 

$

1,194,863

 

 

$

1,255,793

 

 

$

1,244,117

 

Total non-interest-bearing deposits

 

 

1,097,899

 

 

 

1,217,094

 

 

 

1,194,863

 

 

 

1,255,793

 

 

 

1,244,117

 

Demand, savings and money market

 

 

2,329,584

 

 

 

2,335,847

 

 

 

2,445,545

 

 

 

2,511,478

 

 

 

2,522,289

 

Time

 

 

814,324

 

 

 

673,670

 

 

 

651,363

 

 

 

612,399

 

 

 

653,598

 

Total interest-bearing deposits

 

 

3,143,908

 

 

 

3,009,517

 

 

 

3,096,908

 

 

 

3,123,877

 

 

 

3,175,887

 

Total deposits

 

 

4,241,807

 

 

 

4,226,611

 

 

 

4,291,771

 

 

 

4,379,670

 

 

 

4,420,004

 

Federal funds purchased and retail repurchase agreements

 

 

46,478

 

 

 

47,443

 

 

 

52,750

 

 

 

48,199

 

 

 

56,006

 

Federal Home Loan Bank advances

 

 

138,864

 

 

 

186,001

 

 

 

80,000

 

 

 

50,000

 

 

 

 

Subordinated debt

 

 

96,392

 

 

 

96,263

 

 

 

96,135

 

 

 

96,010

 

 

 

95,885

 

Contractual obligations

 

 

15,218

 

 

 

15,562

 

 

 

15,813

 

 

 

17,307

 

 

 

17,692

 

Interest payable and other liabilities

 

 

32,834

 

 

 

32,729

 

 

 

37,572

 

 

 

35,422

 

 

 

47,413

 

Total liabilities

 

 

4,571,593

 

 

 

4,604,609

 

 

 

4,574,041

 

 

 

4,626,608

 

 

 

4,637,000

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

205

 

 

 

204

 

 

 

204

 

 

 

204

 

 

 

203

 

Additional paid-in capital

 

 

484,989

 

 

 

482,668

 

 

 

480,897

 

 

 

480,106

 

 

 

478,862

 

Retained earnings

 

 

140,095

 

 

 

130,114

 

 

 

116,576

 

 

 

102,632

 

 

 

88,324

 

Accumulated other comprehensive income (loss), net of tax

 

 

(113,511

)

 

 

(120,918

)

 

 

(77,426

)

 

 

(50,012

)

 

 

1,776

 

Treasury stock

 

 

(101,720

)

 

 

(96,262

)

 

 

(92,136

)

 

 

(80,915

)

 

 

(68,534

)

Total stockholders’ equity

 

 

410,058

 

 

 

395,806

 

 

 

428,115

 

 

 

452,015

 

 

 

500,631

 

Total liabilities and stockholders’ equity

 

$

4,981,651

 

 

$

5,000,415

 

 

$

5,002,156

 

 

$

5,078,623

 

 

$

5,137,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Allowance for credit losses

 

$

45,847

 

 

$

46,499

 

 

$

48,238

 

 

$

47,590

 

 

$

48,365

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

(Dollars in thousands, except per share data)

 


 

Equity Bancshares, Inc.

PRESS RELEASE

 

 

As of and for the three months ended

 

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

Loans Held For Investment by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,721,269

 

 

$

1,655,646

 

 

$

1,643,068

 

 

$

1,552,134

 

 

$

1,486,148

 

Commercial and industrial

 

 

594,862

 

 

 

607,722

 

 

 

578,899

 

 

 

629,181

 

 

 

567,497

 

Residential real estate

 

 

570,550

 

 

 

573,431

 

 

 

578,936

 

 

 

613,928

 

 

 

638,087

 

Agricultural real estate

 

 

199,189

 

 

 

200,415

 

 

 

197,938

 

 

 

198,844

 

 

 

198,330

 

Agricultural

 

 

120,003

 

 

 

115,048

 

 

 

124,753

 

 

 

150,077

 

 

 

166,975

 

Consumer

 

 

105,675

 

 

 

102,761

 

 

 

99,852

 

 

 

98,413

 

 

 

98,590

 

Total loans held-for-investment

 

 

3,311,548

 

 

 

3,255,023

 

 

 

3,223,446

 

 

 

3,242,577

 

 

 

3,155,627

 

Allowance for credit losses

 

 

(45,847

)

 

 

(46,499

)

 

 

(48,238

)

 

 

(47,590

)

 

 

(48,365

)

Net loans held for investment

 

$

3,265,701

 

 

$

3,208,524

 

 

$

3,175,208

 

 

$

3,194,987

 

 

$

3,107,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans

 

 

1.38

%

 

 

1.43

%

 

 

1.50

%

 

 

1.47

%

 

 

1.53

%

Past due or nonaccrual loans to total loans

 

 

0.72

%

 

 

0.94

%

 

 

0.78

%

 

 

0.82

%

 

 

1.18

%

Nonperforming assets to total assets

 

 

0.37

%

 

 

0.59

%

 

 

0.74

%

 

 

0.74

%

 

 

1.28

%

Nonperforming assets to total loans plus other
    real estate owned

 

 

0.55

%

 

 

0.91

%

 

 

1.14

%

 

 

1.15

%

 

 

2.07

%

Classified assets to bank total regulatory capital

 

 

9.98

%

 

 

11.03

%

 

 

13.08

%

 

 

17.12

%

 

 

25.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Data (QTD Average)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

1,184,452

 

 

$

1,272,414

 

 

$

1,319,099

 

 

$

1,397,421

 

 

$

1,330,267

 

Total gross loans receivable

 

 

3,275,284

 

 

 

3,240,998

 

 

 

3,216,853

 

 

 

3,195,787

 

 

 

3,181,279

 

Interest-earning assets

 

 

4,538,177

 

 

 

4,602,568

 

 

 

4,675,967

 

 

 

4,715,389

 

 

 

4,713,817

 

Total assets

 

 

4,930,231

 

 

 

4,988,755

 

 

 

5,067,686

 

 

 

5,108,120

 

 

 

5,068,278

 

Interest-bearing deposits

 

 

3,032,902

 

 

 

3,081,245

 

 

 

3,112,300

 

 

 

3,163,777

 

 

 

3,101,657

 

Borrowings

 

 

299,191

 

 

 

221,514

 

 

 

238,062

 

 

 

160,094

 

 

 

165,941

 

Total interest-bearing liabilities

 

 

3,335,557

 

 

 

3,302,759

 

 

 

3,350,362

 

 

 

3,323,871

 

 

 

3,267,598

 

Total deposits

 

 

4,185,904

 

 

 

4,283,855

 

 

 

4,340,196

 

 

 

4,393,879

 

 

 

4,342,732