Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “the Company”,
“we,” “us,” “our”), the Wichita-based holding company of Equity
Bank, reported net income of $15.3 million and $0.94 earnings per
diluted share for the quarter ended June 30, 2022.
“In 2022, we’ve demonstrated our ability to deliver organic
growth absent a merger partner. Our 8.5% organic loan growth
represents the hard work of our sales and operations teams to
provide value to customers,” said Brad S. Elliott, Chairman and
CEO, Equity Bancshares, Inc. “We have a great leadership team
dedicated to driving loans, treasury services, deposit products,
and new products such as our recently introduced healthcare
services offerings. These efforts to deliver sophisticated products
and customer experience solutions had the effect of increasing
earnings, improving net interest margin, increasing fee income and
improving our loan to deposit ratio.”
“In the third quarter, we expect to continue to strengthen our
loan to deposit ratio and to serve as a resource for our customers
as they continue to navigate economic challenges for their
businesses and families,” said Mr. Elliott. “Our brand reflects our
entrepreneurial spirit, and as we add talent to our leadership
teams, new products and services, and new service channels, we’ll
continue to operate with our local customers in mind.”
Notable Items:
- During the second quarter, the Company realized continued loan
growth excluding the impact of PPP assets and the branch sale,
bring annualized loan growth year-to-date to 8.51%.
- During the quarter, the Company realized linked period growth
of 5.38% in service fee income, driven by additional debit card
revenue and service charges on Equity Bank deposit products.
- The Company closed on the sale of three branches to United Bank
& Trust in Belleville, Clyde and Concordia, Kansas, which
resulted in a net gain of $540 thousand.
- At June 30, 2022, classified assets to regulatory capital has
declined to 13.1% from 17.1% at March 31, 2022.
- The Company continued to emphasize investor returns through
repurchase of 355,844 shares during the quarter, at an average
price of $31.54, as well as the continuation of our quarterly
dividend program at $0.08 per share. Under the currently
active repurchase program, the Company is authorized to purchase an
additional 126,900 shares.
Financial Results for the Quarter Ended June 30,
2022
Net income allocable to common stockholders was $15.3 million,
or $0.94 per diluted share, for the three months ended June 30,
2022, as compared to $15.7 million, or $0.93 per diluted share, for
the three months ended March 31, 2022. The decrease for the second
quarter of 2022 is primarily due to increases in non-interest
expense of $2.0 million and provision for credit losses of $1.2
million, partially offset by an increase in non-interest income of
$615 thousand and net interest income of $277 thousand.
Net Interest Income
Net interest income was $39.6 million for the three months ended
June 30, 2022, as compared to $39.3 million for the three months
ended March 31, 2022, an increase of $277 thousand, or
0.7%. The yield on interest-earning assets increased
7-basis points to 3.74% during the quarter ended June 30, 2022, as
compared to 3.67% for the quarter ended March 31, 2022. The cost of
interest-bearing deposits increased by 6 basis points during the
quarter, moving from 0.22% at March 31, 2022 to 0.28% at June 30,
2022.
Provision for Credit Losses
During the three months ended June 30, 2022, there was a
provision to the allowance for credit losses of $824 thousand
compared to a net release of $412 thousand in the previous quarter.
The comparative increase was primarily driven by the increase in
general reserves driven by slowing prepayment speeds and the
perceived risk associated with the current economic environment,
which includes, significant inflation, supply chain concerns and
the impact of monetary policy on consumers and
businesses. For the three months ended June 30, 2022,
we had net charge-offs of $176 thousand as compared to $362
thousand for the three months ended March 31, 2022.
Non-Interest Income
Total non-interest income was $9.6 million for the three months
ended June 30, 2022, as compared to $9.0 million for the three
months ended March 31, 2022, or an increase of 6.8%, quarter over
quarter. The increase was primarily due to an increase in net gain
on acquisition and branch sales of $540 thousand.
Non-Interest Expense
Total non-interest expense for the quarter ended June 30, 2022,
was $31.4 million as compared to $29.5 million for the quarter
ended March 31, 2022. The $2.0 million change was primarily due to
increases in other non-interest expense of $2.0 million driven by a
provision to reserve for unfunded commitments of $288 thousand for
the quarter ended June 30, 2022, compared to a release of reserve
for unfunded commitments of $1.0 million for the quarter ended
March 31, 2022.
Asset Quality
As of June 30, 2022, Equity’s allowance for credit losses to
total loans remained constant at 1.5%, as compared to March 31,
2022. Nonperforming assets were $37.0 million as of June 30, 2022,
or 0.7% of total assets, compared to $37.5 million at March 31,
2022, or 0.7% of total assets. Non-accrual loans were $18.9 million
at June 30, 2022, as compared to $20.7 million at March 31, 2022.
Total classified assets, including loans rated special mention or
worse, other real estate owned and other repossessed assets were
$72.1 million, or 13.1% of regulatory capital, down from $94.2
million, or 17.1% of regulatory capital as of March 31, 2022.
During the quarter ended June 30, 2022, non-performing assets
decreased $500 thousand due to decreases in non-accrual loans of
$1.8 million partially offset by increases in closed bank branches
classified as other real estate owned of $881 thousand and other
repossessed assets of $83 thousand.
Regulatory Capital
The Company’s ratio of common equity tier 1 capital to
risk-weighted assets was 12.1%, the total capital to risk-weighted
assets was 16.0% and the total leverage ratio was 9.1% at June 30,
2022. At March 31, 2022, the Company’s common equity
tier 1 capital to risk-weighted assets ratio was 11.8%, the total
capital to risk-weighted assets ratio was 15.7% and the total
leverage ratio was 9.1%.
The Company’s subsidiary, Equity Bank, had a ratio of common
equity tier 1 capital to risk-weighted assets of 13.9%, a ratio of
total capital to risk-weighted assets of 15.1% and a total leverage
ratio of 9.9% at June 30, 2022. At March 31, 2022,
Equity Bank’s ratio of common equity tier 1 capital to
risk-weighted assets was 13.7%, the ratio of total capital to
risk-weighted assets was 14.9% and the total leverage ratio was
10.0%.
Non-GAAP Financial Measures
In addition to evaluating the Company’s results of operations in
accordance with accounting principles generally accepted in the
United States of America (“GAAP”), management periodically
supplements this evaluation with an analysis of certain non-GAAP
financial measures that are intended to provide the reader with
additional perspectives on operating results, financial condition
and performance trends, while facilitating comparisons with the
performance of other financial institutions. Non-GAAP financial
measures are not a substitute for GAAP measures, rather, they
should be read and used in conjunction with the Company’s GAAP
financial information.
The efficiency ratio is a common comparable metric used by banks
to understand the expense structure relative to total revenue. In
other words, for every dollar of total revenue recognized, how much
of that dollar is expended. To improve the comparability of the
ratio to our peers, non-core items are excluded. To improve
transparency and acknowledging that banks are not consistent in
their definition of the efficiency ratio, we include our
calculation of this non-GAAP measure.
Return on average assets before income tax provision and
provision for loan losses is a measure that the Company uses to
understand fundamental operating performance before these expenses.
Used as a ratio relative to average assets, we believe it
demonstrates “core” performance and can be viewed as an alternative
measure of how efficiently the Company services its asset base.
Used as a ratio relative to average equity, it can function as an
alternative measure of the Company’s earnings performance in
relationship to its equity.
Tangible common equity and related measures are non-GAAP
financial measures that exclude the impact of intangible assets,
net of deferred taxes, and their related amortization. These
financial measures are useful for evaluating the performance of a
business consistently, whether acquired or developed internally.
Return on average tangible common equity is used by management and
readers of our financial statements to understand how efficiently
the Company is deploying its common equity. Companies that are able
to demonstrate more efficient use of common equity are more likely
to be viewed favorably by current and prospective investors.
The Company believes that disclosing these non-GAAP financial
measures is both useful internally and is expected by our investors
and analysts in order to understand the overall performance of the
Company. Other companies may calculate and define their non-GAAP
financial measures and supplemental data differently. A
reconciliation of GAAP financial measures to non-GAAP measures and
other performance ratios, as adjusted, are included in Table 6 in
the following press release tables.
Conference Call and Webcast
Equity’s Chairman and Chief Executive Officer, Brad Elliott, and
Chief Financial Officer, Eric Newell, will hold a conference call
and webcast to discuss second quarter results on Wednesday, July
20, 2022 at 10 a.m. eastern time or 9 a.m. central time.
A live webcast of the call will be available on the Company’s
website at investor.equitybank.com. To access the call by
phone, please go to this registration link, and you will be
provided with dial in details. Investors, news media, and other
participants are encouraged to dial into the conference call ten
minutes ahead of the scheduled start time.
A replay of the call and webcast will be available two hours
following the close of the call until July 27, 2022, accessible
at investor.equitybank.com.
About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the holding company for Equity Bank,
offering a full range of financial solutions, including commercial
loans, consumer banking, mortgage loans, trust and wealth
management services and treasury management services, while
delivering the high-quality, relationship-based customer service of
a community bank. Equity’s common stock is traded on the NASDAQ
Global Select Market under the symbol “EQBK.” Learn more at
www.equitybank.com.
Special Note Concerning Forward-Looking
Statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements reflect the
current views of Equity’s management with respect to, among other
things, future events and Equity’s financial performance. These
statements are often, but not always, made through the use of words
or phrases such as “may,” “should,” “could,” “predict,”
“potential,” “believe,” “will likely result,” “expect,” “continue,”
“will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,”
“project,” “forecast,” “goal,” “target,” “would” and “outlook,” or
the negative variations of those words or other comparable words of
a future or forward-looking nature. These forward-looking
statements are not historical facts, and are based on current
expectations, estimates and projections about Equity’s industry,
management’s beliefs and certain assumptions made by management,
many of which, by their nature, are inherently uncertain and beyond
Equity’s control. Accordingly, Equity cautions you that any such
forward-looking statements are not guarantees of future performance
and are subject to risks, assumptions and uncertainties that are
difficult to predict. Although Equity believes that the
expectations reflected in these forward-looking statements are
reasonable as of the date made, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements. Factors that could cause actual results
to differ materially from Equity’s expectations include COVID-19
related impacts; competition from other financial institutions and
bank holding companies; the effects of and changes in trade,
monetary and fiscal policies and laws, including interest rate
policies of the Federal Reserve Board; changes in the demand for
loans; fluctuations in value of collateral and loan reserves;
inflation, interest rate, market and monetary fluctuations; changes
in consumer spending, borrowing and savings habits; and
acquisitions and integration of acquired businesses; and similar
variables. The foregoing list of factors is not exhaustive.
For discussion of these and other risks that may cause actual
results to differ from expectations, please refer to “Cautionary
Note Regarding Forward-Looking Statements” and “Risk Factors” in
Equity’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 9, 2022, and any updates to those risk
factors set forth in Equity’s subsequent Quarterly Reports on Form
10-Q or Current Reports on Form 8-K. If one or more events related
to these or other risks or uncertainties materialize, or if
Equity’s underlying assumptions prove to be incorrect, actual
results may differ materially from what Equity anticipates.
Accordingly, you should not place undue reliance on any such
forward-looking statements. Any forward-looking statement speaks
only as of the date on which it is made, and Equity does not
undertake any obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise. New risks and uncertainties arise
from time to time, such as COVID-19, and it is not possible for us
to predict those events or how they may affect us. In addition,
Equity cannot assess the impact of each factor on Equity’s business
or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in
any forward-looking statements. All forward-looking statements,
expressed or implied, included in this press release are expressly
qualified in their entirety by this cautionary statement. This
cautionary statement should also be considered in connection with
any subsequent written or oral forward-looking statements that
Equity or persons acting on Equity’s behalf may issue.
Investor Contact:
Chris NavratilSVP, FinanceEquity Bancshares, Inc.(316)
612-6014cnavratil@equitybank.com
Media Contact:
John J. HanleySVP, Senior Director of MarketingEquity
Bancshares, Inc.(913) 583-8004jhanley@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. CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)(Dollars in thousands, except per share data)
|
Three months endedJune 30, |
|
|
Six months endedJune 30, |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
36,849 |
|
|
$ |
33,810 |
|
|
$ |
73,155 |
|
|
$ |
64,811 |
|
Securities, taxable |
|
5,584 |
|
|
|
3,523 |
|
|
|
10,975 |
|
|
|
7,322 |
|
Securities, nontaxable |
|
678 |
|
|
|
717 |
|
|
|
1,333 |
|
|
|
1,441 |
|
Federal funds sold and other |
|
513 |
|
|
|
268 |
|
|
|
813 |
|
|
|
556 |
|
Total interest and dividend income |
|
43,624 |
|
|
|
38,318 |
|
|
|
86,276 |
|
|
|
74,130 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,183 |
|
|
|
2,025 |
|
|
|
3,905 |
|
|
|
4,435 |
|
Federal funds purchased and retail repurchase agreements |
|
46 |
|
|
|
26 |
|
|
|
79 |
|
|
|
48 |
|
Federal Home Loan Bank advances |
|
176 |
|
|
|
80 |
|
|
|
185 |
|
|
|
145 |
|
Subordinated debt |
|
1,653 |
|
|
|
1,557 |
|
|
|
3,252 |
|
|
|
3,113 |
|
Total interest expense |
|
4,058 |
|
|
|
3,688 |
|
|
|
7,421 |
|
|
|
7,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
39,566 |
|
|
|
34,630 |
|
|
|
78,855 |
|
|
|
66,389 |
|
Provision (reversal) for credit
losses |
|
824 |
|
|
|
(1,657 |
) |
|
|
412 |
|
|
|
(7,413 |
) |
Net interest income after
provision (reversal) for credit losses |
|
38,742 |
|
|
|
36,287 |
|
|
|
78,443 |
|
|
|
73,802 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
2,617 |
|
|
|
2,169 |
|
|
|
5,139 |
|
|
|
3,765 |
|
Debit card income |
|
2,810 |
|
|
|
2,679 |
|
|
|
5,438 |
|
|
|
5,029 |
|
Mortgage banking |
|
428 |
|
|
|
848 |
|
|
|
990 |
|
|
|
1,783 |
|
Increase in value of bank-owned life insurance |
|
736 |
|
|
|
676 |
|
|
|
1,601 |
|
|
|
1,277 |
|
Net gain on acquisition and branch sales |
|
540 |
|
|
|
663 |
|
|
|
540 |
|
|
|
585 |
|
Net gains (losses) from securities transactions |
|
(32 |
) |
|
|
— |
|
|
|
8 |
|
|
|
17 |
|
Other |
|
2,538 |
|
|
|
2,065 |
|
|
|
4,943 |
|
|
|
3,356 |
|
Total non-interest income |
|
9,637 |
|
|
|
9,100 |
|
|
|
18,659 |
|
|
|
15,812 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
15,383 |
|
|
|
12,769 |
|
|
|
30,451 |
|
|
|
25,491 |
|
Net occupancy and equipment |
|
3,007 |
|
|
|
2,327 |
|
|
|
6,177 |
|
|
|
4,695 |
|
Data processing |
|
3,642 |
|
|
|
3,474 |
|
|
|
7,411 |
|
|
|
6,137 |
|
Professional fees |
|
1,111 |
|
|
|
999 |
|
|
|
2,282 |
|
|
|
2,072 |
|
Advertising and business development |
|
972 |
|
|
|
799 |
|
|
|
1,948 |
|
|
|
1,481 |
|
Telecommunications |
|
442 |
|
|
|
512 |
|
|
|
912 |
|
|
|
1,092 |
|
FDIC insurance |
|
260 |
|
|
|
425 |
|
|
|
440 |
|
|
|
840 |
|
Courier and postage |
|
489 |
|
|
|
327 |
|
|
|
912 |
|
|
|
696 |
|
Free nationwide ATM cost |
|
541 |
|
|
|
513 |
|
|
|
1,042 |
|
|
|
985 |
|
Amortization of core deposit intangibles |
|
1,111 |
|
|
|
1,030 |
|
|
|
2,161 |
|
|
|
2,064 |
|
Loan expense |
|
207 |
|
|
|
181 |
|
|
|
392 |
|
|
|
419 |
|
Other real estate owned |
|
14 |
|
|
|
(468 |
) |
|
|
13 |
|
|
|
(463 |
) |
Merger expenses |
|
88 |
|
|
|
460 |
|
|
|
411 |
|
|
|
612 |
|
Other |
|
4,169 |
|
|
|
2,458 |
|
|
|
6,343 |
|
|
|
4,566 |
|
Total non-interest expense |
|
31,436 |
|
|
|
25,806 |
|
|
|
60,895 |
|
|
|
50,687 |
|
Income (loss) before income
tax |
|
16,943 |
|
|
|
19,581 |
|
|
|
36,207 |
|
|
|
38,927 |
|
Provision for income taxes |
|
1,684 |
|
|
|
4,415 |
|
|
|
5,298 |
|
|
|
8,686 |
|
Net income (loss) and net
income (loss) allocable to common stockholders |
$ |
15,259 |
|
|
$ |
15,166 |
|
|
$ |
30,909 |
|
|
$ |
30,241 |
|
Basic earnings (loss) per
share |
$ |
0.95 |
|
|
$ |
1.06 |
|
|
$ |
1.88 |
|
|
$ |
2.10 |
|
Diluted earnings (loss) per
share |
$ |
0.94 |
|
|
$ |
1.03 |
|
|
$ |
1.86 |
|
|
$ |
2.06 |
|
Weighted average common
shares |
|
16,106,683 |
|
|
|
14,356,958 |
|
|
|
16,428,535 |
|
|
|
14,410,328 |
|
Weighted average diluted common
shares |
|
16,312,953 |
|
|
|
14,674,838 |
|
|
|
16,639,970 |
|
|
|
14,704,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF
INCOME (Unaudited)(Dollars in thousands, except per share
data)
|
As of and for the three months ended |
|
|
June 30,2022 |
|
|
March 31,2022 |
|
|
December 31,2021 |
|
|
September 30,2021 |
|
|
June 30,2021 |
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
36,849 |
|
|
$ |
36,306 |
|
|
$ |
34,942 |
|
|
$ |
37,581 |
|
|
$ |
33,810 |
|
Securities, taxable |
|
5,584 |
|
|
|
5,391 |
|
|
|
4,754 |
|
|
|
3,920 |
|
|
|
3,523 |
|
Securities, nontaxable |
|
678 |
|
|
|
655 |
|
|
|
747 |
|
|
|
655 |
|
|
|
717 |
|
Federal funds sold and other |
|
513 |
|
|
|
300 |
|
|
|
349 |
|
|
|
290 |
|
|
|
268 |
|
Total interest and dividend income |
|
43,624 |
|
|
|
42,652 |
|
|
|
40,792 |
|
|
|
42,446 |
|
|
|
38,318 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,183 |
|
|
|
1,722 |
|
|
|
1,939 |
|
|
|
1,881 |
|
|
|
2,025 |
|
Federal funds purchased and retail repurchase agreements |
|
46 |
|
|
|
33 |
|
|
|
32 |
|
|
|
24 |
|
|
|
26 |
|
Federal Home Loan Bank advances |
|
176 |
|
|
|
9 |
|
|
|
14 |
|
|
|
10 |
|
|
|
80 |
|
Subordinated debt |
|
1,653 |
|
|
|
1,599 |
|
|
|
1,592 |
|
|
|
1,556 |
|
|
|
1,557 |
|
Total interest expense |
|
4,058 |
|
|
|
3,363 |
|
|
|
3,577 |
|
|
|
3,471 |
|
|
|
3,688 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
39,566 |
|
|
|
39,289 |
|
|
|
37,215 |
|
|
|
38,975 |
|
|
|
34,630 |
|
Provision (reversal) for credit
losses |
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
|
|
(1,657 |
) |
Net interest income after
provision (reversal) for credit losses |
|
38,742 |
|
|
|
39,701 |
|
|
|
39,340 |
|
|
|
37,917 |
|
|
|
36,287 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
2,617 |
|
|
|
2,522 |
|
|
|
2,471 |
|
|
|
2,360 |
|
|
|
2,169 |
|
Debit card income |
|
2,810 |
|
|
|
2,628 |
|
|
|
2,633 |
|
|
|
2,574 |
|
|
|
2,679 |
|
Mortgage banking |
|
428 |
|
|
|
562 |
|
|
|
722 |
|
|
|
801 |
|
|
|
848 |
|
Increase in value of bank-owned life insurance |
|
736 |
|
|
|
865 |
|
|
|
1,060 |
|
|
|
1,169 |
|
|
|
676 |
|
Net gain on acquisition and branch sales |
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
663 |
|
Net gains (losses) from securities transactions |
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
|
|
— |
|
Other |
|
2,538 |
|
|
|
2,405 |
|
|
|
2,305 |
|
|
|
546 |
|
|
|
2,065 |
|
Total non-interest income |
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
|
|
9,100 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
15,383 |
|
|
|
15,068 |
|
|
|
15,119 |
|
|
|
13,588 |
|
|
|
12,769 |
|
Net occupancy and equipment |
|
3,007 |
|
|
|
3,170 |
|
|
|
2,967 |
|
|
|
2,475 |
|
|
|
2,327 |
|
Data processing |
|
3,642 |
|
|
|
3,769 |
|
|
|
3,867 |
|
|
|
3,257 |
|
|
|
3,474 |
|
Professional fees |
|
1,111 |
|
|
|
1,171 |
|
|
|
1,565 |
|
|
|
1,076 |
|
|
|
999 |
|
Advertising and business development |
|
972 |
|
|
|
976 |
|
|
|
1,129 |
|
|
|
760 |
|
|
|
799 |
|
Telecommunications |
|
442 |
|
|
|
470 |
|
|
|
435 |
|
|
|
439 |
|
|
|
512 |
|
FDIC insurance |
|
260 |
|
|
|
180 |
|
|
|
360 |
|
|
|
465 |
|
|
|
425 |
|
Courier and postage |
|
489 |
|
|
|
423 |
|
|
|
389 |
|
|
|
344 |
|
|
|
327 |
|
Free nationwide ATM cost |
|
541 |
|
|
|
501 |
|
|
|
515 |
|
|
|
519 |
|
|
|
513 |
|
Amortization of core deposit intangibles |
|
1,111 |
|
|
|
1,050 |
|
|
|
1,080 |
|
|
|
1,030 |
|
|
|
1,030 |
|
Loan expense |
|
207 |
|
|
|
185 |
|
|
|
308 |
|
|
|
207 |
|
|
|
181 |
|
Other real estate owned |
|
14 |
|
|
|
(1 |
) |
|
|
617 |
|
|
|
(342 |
) |
|
|
(468 |
) |
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
372 |
|
|
|
— |
|
Merger expenses |
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
|
|
460 |
|
Other |
|
4,169 |
|
|
|
2,174 |
|
|
|
5,176 |
|
|
|
2,484 |
|
|
|
2,458 |
|
Total non-interest expense |
|
31,436 |
|
|
|
29,459 |
|
|
|
38,089 |
|
|
|
30,689 |
|
|
|
25,806 |
|
Income (loss) before income
tax |
|
16,943 |
|
|
|
19,264 |
|
|
|
10,450 |
|
|
|
15,059 |
|
|
|
19,581 |
|
Provision for income taxes
(benefit) |
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
|
|
4,415 |
|
Net income (loss) and net
income (loss) allocable to common stockholders |
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
Basic earnings (loss) per
share |
$ |
0.95 |
|
|
$ |
0.94 |
|
|
$ |
0.62 |
|
|
$ |
0.82 |
|
|
$ |
1.06 |
|
Diluted earnings (loss) per
share |
$ |
0.94 |
|
|
$ |
0.93 |
|
|
$ |
0.61 |
|
|
$ |
0.80 |
|
|
$ |
1.03 |
|
Weighted average common
shares |
|
16,106,683 |
|
|
|
16,652,556 |
|
|
|
16,865,167 |
|
|
|
14,384,302 |
|
|
|
14,356,958 |
|
Weighted average diluted common
shares |
|
16,312,953 |
|
|
|
16,869,152 |
|
|
|
17,141,174 |
|
|
|
14,669,312 |
|
|
|
14,674,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 3. CONSOLIDATED BALANCE SHEETS
(Unaudited) (Dollars in thousands)
|
June 30,2022 |
|
|
March 31,2022 |
|
|
December 31,2021 |
|
|
September 30,2021 |
|
|
June 30,2021 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
103,126 |
|
|
$ |
89,764 |
|
|
$ |
259,131 |
|
|
$ |
141,645 |
|
|
$ |
138,869 |
|
Federal funds sold |
|
458 |
|
|
|
286 |
|
|
|
823 |
|
|
|
673 |
|
|
|
452 |
|
Cash and cash equivalents |
|
103,584 |
|
|
|
90,050 |
|
|
|
259,954 |
|
|
|
142,318 |
|
|
|
139,321 |
|
Available-for-sale
securities |
|
1,288,180 |
|
|
|
1,352,894 |
|
|
|
1,327,442 |
|
|
|
1,157,423 |
|
|
|
1,041,613 |
|
Loans held for sale |
|
1,714 |
|
|
|
1,575 |
|
|
|
4,214 |
|
|
|
4,108 |
|
|
|
6,183 |
|
Loans, net of allowance for
credit losses(1) |
|
3,175,208 |
|
|
|
3,194,987 |
|
|
|
3,107,262 |
|
|
|
2,633,148 |
|
|
|
2,763,227 |
|
Other real estate owned, net |
|
12,969 |
|
|
|
9,897 |
|
|
|
9,523 |
|
|
|
10,267 |
|
|
|
10,861 |
|
Premises and equipment, net |
|
101,212 |
|
|
|
103,168 |
|
|
|
104,038 |
|
|
|
90,727 |
|
|
|
90,876 |
|
Bank-owned life insurance |
|
121,665 |
|
|
|
120,928 |
|
|
|
120,787 |
|
|
|
103,431 |
|
|
|
103,321 |
|
Federal Reserve Bank and Federal
Home Loan Bank stock |
|
21,479 |
|
|
|
19,890 |
|
|
|
17,510 |
|
|
|
14,540 |
|
|
|
18,454 |
|
Interest receivable |
|
16,519 |
|
|
|
16,923 |
|
|
|
18,048 |
|
|
|
15,519 |
|
|
|
15,064 |
|
Goodwill |
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
|
|
31,601 |
|
Core deposit intangibles,
net |
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
Other |
|
93,971 |
|
|
|
100,016 |
|
|
|
99,509 |
|
|
|
47,223 |
|
|
|
33,702 |
|
Total assets |
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
1,194,863 |
|
|
$ |
1,255,793 |
|
|
$ |
1,244,117 |
|
|
$ |
984,436 |
|
|
$ |
992,565 |
|
Total non-interest-bearing deposits |
|
1,194,863 |
|
|
|
1,255,793 |
|
|
|
1,244,117 |
|
|
|
984,436 |
|
|
|
992,565 |
|
Demand, savings and money market |
|
2,445,545 |
|
|
|
2,511,478 |
|
|
|
2,522,289 |
|
|
|
2,092,849 |
|
|
|
2,035,496 |
|
Time |
|
651,363 |
|
|
|
612,399 |
|
|
|
653,598 |
|
|
|
585,492 |
|
|
|
659,494 |
|
Total interest-bearing deposits |
|
3,096,908 |
|
|
|
3,123,877 |
|
|
|
3,175,887 |
|
|
|
2,678,341 |
|
|
|
2,694,990 |
|
Total deposits |
|
4,291,771 |
|
|
|
4,379,670 |
|
|
|
4,420,004 |
|
|
|
3,662,777 |
|
|
|
3,687,555 |
|
Federal funds purchased and
retail repurchase agreements |
|
52,750 |
|
|
|
48,199 |
|
|
|
56,006 |
|
|
|
39,137 |
|
|
|
47,184 |
|
Federal Home Loan Bank
advances |
|
80,000 |
|
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
|
|
9,208 |
|
Subordinated debt |
|
96,135 |
|
|
|
96,010 |
|
|
|
95,885 |
|
|
|
88,030 |
|
|
|
87,908 |
|
Contractual obligations |
|
15,813 |
|
|
|
17,307 |
|
|
|
17,692 |
|
|
|
18,771 |
|
|
|
4,469 |
|
Interest payable and other
liabilities |
|
37,572 |
|
|
|
35,422 |
|
|
|
47,413 |
|
|
|
36,804 |
|
|
|
18,897 |
|
Total liabilities |
|
4,574,041 |
|
|
|
4,626,608 |
|
|
|
4,637,000 |
|
|
|
3,845,519 |
|
|
|
3,855,221 |
|
Commitments and contingent
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
204 |
|
|
|
204 |
|
|
|
203 |
|
|
|
178 |
|
|
|
176 |
|
Additional paid-in capital |
|
480,897 |
|
|
|
480,106 |
|
|
|
478,862 |
|
|
|
392,321 |
|
|
|
389,394 |
|
Retained earnings |
|
116,576 |
|
|
|
102,632 |
|
|
|
88,324 |
|
|
|
79,226 |
|
|
|
68,625 |
|
Accumulated other comprehensive income, net of tax |
|
(77,426 |
) |
|
|
(50,012 |
) |
|
|
1,776 |
|
|
|
9,475 |
|
|
|
13,450 |
|
Treasury stock |
|
(92,136 |
) |
|
|
(80,915 |
) |
|
|
(68,534 |
) |
|
|
(63,451 |
) |
|
|
(58,650 |
) |
Total stockholders’ equity |
|
428,115 |
|
|
|
452,015 |
|
|
|
500,631 |
|
|
|
417,749 |
|
|
|
412,995 |
|
Total liabilities and stockholders’ equity |
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Allowance for credit
losses |
$ |
48,238 |
|
|
$ |
47,590 |
|
|
$ |
48,365 |
|
|
$ |
52,763 |
|
|
$ |
51,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 4. SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)(Dollars in thousands, except per share data)
|
As of and for the three months ended |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
Loans Held For Investment by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
$ |
1,643,068 |
|
|
$ |
1,552,134 |
|
|
$ |
1,486,148 |
|
|
$ |
1,308,707 |
|
|
$ |
1,261,214 |
|
Commercial and industrial |
|
578,899 |
|
|
|
629,181 |
|
|
|
567,497 |
|
|
|
569,513 |
|
|
|
732,126 |
|
Residential real estate |
|
578,936 |
|
|
|
613,928 |
|
|
|
638,087 |
|
|
|
490,633 |
|
|
|
503,110 |
|
Agricultural real estate |
|
197,938 |
|
|
|
198,844 |
|
|
|
198,330 |
|
|
|
138,793 |
|
|
|
129,020 |
|
Agricultural |
|
124,753 |
|
|
|
150,077 |
|
|
|
166,975 |
|
|
|
93,767 |
|
|
|
97,912 |
|
Consumer |
|
99,852 |
|
|
|
98,413 |
|
|
|
98,590 |
|
|
|
84,498 |
|
|
|
91,679 |
|
Total loans held-for-investment |
|
3,223,446 |
|
|
|
3,242,577 |
|
|
|
3,155,627 |
|
|
|
2,685,911 |
|
|
|
2,815,061 |
|
Allowance for credit losses |
|
(48,238 |
) |
|
|
(47,590 |
) |
|
|
(48,365 |
) |
|
|
(52,763 |
) |
|
|
(51,834 |
) |
Net loans held for investment |
$ |
3,175,208 |
|
|
$ |
3,194,987 |
|
|
$ |
3,107,262 |
|
|
$ |
2,633,148 |
|
|
$ |
2,763,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total loans |
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.96 |
% |
|
|
1.84 |
% |
Past due or nonaccrual loans to total loans |
|
0.78 |
% |
|
|
0.82 |
% |
|
|
1.18 |
% |
|
|
2.78 |
% |
|
|
2.09 |
% |
Nonperforming assets to total assets |
|
0.74 |
% |
|
|
0.74 |
% |
|
|
1.28 |
% |
|
|
1.74 |
% |
|
|
1.56 |
% |
Nonperforming assets to total loans plus other real estate
owned |
|
1.14 |
% |
|
|
1.15 |
% |
|
|
2.07 |
% |
|
|
2.76 |
% |
|
|
2.36 |
% |
Classified assets to bank total regulatory capital |
|
13.08 |
% |
|
|
17.12 |
% |
|
|
25.34 |
% |
|
|
24.25 |
% |
|
|
23.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balance
Sheet Data (QTD Average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
1,319,099 |
|
|
$ |
1,397,421 |
|
|
$ |
1,330,267 |
|
|
$ |
1,061,178 |
|
|
$ |
986,986 |
|
Total gross loans receivable |
|
3,216,853 |
|
|
|
3,195,787 |
|
|
|
3,181,279 |
|
|
|
2,748,202 |
|
|
|
2,853,145 |
|
Interest-earning assets |
|
4,675,967 |
|
|
|
4,715,389 |
|
|
|
4,713,817 |
|
|
|
4,005,509 |
|
|
|
3,964,633 |
|
Total assets |
|
5,067,686 |
|
|
|
5,108,120 |
|
|
|
5,068,278 |
|
|
|
4,275,298 |
|
|
|
4,231,439 |
|
Interest-bearing deposits |
|
3,112,300 |
|
|
|
3,163,777 |
|
|
|
3,101,657 |
|
|
|
2,702,040 |
|
|
|
2,656,052 |
|
Borrowings |
|
238,062 |
|
|
|
160,094 |
|
|
|
165,941 |
|
|
|
132,581 |
|
|
|
171,658 |
|
Total interest-bearing liabilities |
|
3,350,362 |
|
|
|
3,323,871 |
|
|
|
3,267,598 |
|
|
|
2,834,621 |
|
|
|
2,827,710 |
|
Total deposits |
|
4,340,196 |
|
|
|
4,393,879 |
|
|
|
4,342,732 |
|
|
|
3,686,169 |
|
|
|
3,624,950 |
|
Total liabilities |
|
4,630,204 |
|
|
|
4,615,521 |
|
|
|
4,505,232 |
|
|
|
3,852,419 |
|
|
|
3,827,400 |
|
Total stockholders' equity |
|
437,483 |
|
|
|
492,599 |
|
|
|
563,046 |
|
|
|
422,879 |
|
|
|
404,039 |
|
Tangible common equity* |
|
368,505 |
|
|
|
422,418 |
|
|
|
501,860 |
|
|
|
376,544 |
|
|
|
356,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) annualized |
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
Return on average assets before income tax and provision for loan
losses* |
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
|
|
1.70 |
% |
Return on average equity (ROAE) annualized |
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
|
|
15.06 |
% |
Return on average equity before income tax and provision for loan
losses* |
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
|
|
17.79 |
% |
Return on average tangible common equity (ROATCE) annualized* |
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
17.98 |
% |
Yield on loans annualized |
|
4.59 |
% |
|
|
4.61 |
% |
|
|
4.36 |
% |
|
|
5.43 |
% |
|
|
4.75 |
% |
Cost of interest-bearing deposits annualized |
|
0.28 |
% |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.28 |
% |
|
|
0.31 |
% |
Cost of total deposits annualized |
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.20 |
% |
|
|
0.22 |
% |
Net interest margin annualized |
|
3.39 |
% |
|
|
3.38 |
% |
|
|
3.13 |
% |
|
|
3.86 |
% |
|
|
3.50 |
% |
Efficiency ratio* |
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
|
|
58.85 |
% |
Non-interest income / average assets |
|
0.76 |
% |
|
|
0.72 |
% |
|
|
0.72 |
% |
|
|
0.73 |
% |
|
|
0.86 |
% |
Non-interest expense / average assets |
|
2.49 |
% |
|
|
2.34 |
% |
|
|
2.98 |
% |
|
|
2.85 |
% |
|
|
2.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
9.11 |
% |
|
|
9.07 |
% |
|
|
9.09 |
% |
|
|
9.02 |
% |
|
|
8.88 |
% |
Common Equity Tier 1 Capital Ratio |
|
12.08 |
% |
|
|
11.81 |
% |
|
|
12.03 |
% |
|
|
12.39 |
% |
|
|
12.41 |
% |
Tier 1 Risk Based Capital Ratio |
|
12.71 |
% |
|
|
12.43 |
% |
|
|
12.67 |
% |
|
|
12.90 |
% |
|
|
12.93 |
% |
Total Risk Based Capital Ratio |
|
15.97 |
% |
|
|
15.66 |
% |
|
|
15.96 |
% |
|
|
16.63 |
% |
|
|
16.74 |
% |
Total stockholders' equity to total assets |
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
|
|
9.68 |
% |
Tangible common equity to tangible assets* |
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
|
|
8.68 |
% |
Dividend payout ratio |
|
8.61 |
% |
|
|
8.58 |
% |
|
|
13.05 |
% |
|
|
9.96 |
% |
|
|
0.00 |
% |
Book value per common share |
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
|
$ |
28.76 |
|
Tangible book value per common share* |
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
|
$ |
25.51 |
|
Tangible book value per diluted common share* |
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
|
$ |
24.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 5. YEAR-TO-DATE NET INTEREST INCOME
ANALYSIS (Unaudited)(Dollars in thousands)
|
For the six months ended |
|
|
For the six months ended |
|
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
AverageYield/Rate(3)(4) |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
AverageYield/Rate(3)(4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
581,880 |
|
|
$ |
15,244 |
|
|
|
5.28 |
% |
|
$ |
814,895 |
|
|
$ |
20,962 |
|
|
|
5.19 |
% |
Commercial real estate |
|
1,200,212 |
|
|
|
27,972 |
|
|
|
4.70 |
% |
|
|
981,482 |
|
|
|
22,873 |
|
|
|
4.70 |
% |
Real estate construction |
|
363,542 |
|
|
|
7,596 |
|
|
|
4.21 |
% |
|
|
254,807 |
|
|
|
4,531 |
|
|
|
3.59 |
% |
Residential real estate |
|
615,035 |
|
|
|
10,872 |
|
|
|
3.56 |
% |
|
|
430,123 |
|
|
|
9,093 |
|
|
|
4.26 |
% |
Agricultural real estate |
|
202,091 |
|
|
|
5,306 |
|
|
|
5.29 |
% |
|
|
136,366 |
|
|
|
3,384 |
|
|
|
5.00 |
% |
Agricultural |
|
142,210 |
|
|
|
3,849 |
|
|
|
5.46 |
% |
|
|
94,596 |
|
|
|
2,062 |
|
|
|
4.40 |
% |
Consumer |
|
101,409 |
|
|
|
2,316 |
|
|
|
4.60 |
% |
|
|
83,083 |
|
|
|
1,906 |
|
|
|
4.63 |
% |
Total loans |
|
3,206,379 |
|
|
|
73,155 |
|
|
|
4.60 |
% |
|
|
2,795,352 |
|
|
|
64,811 |
|
|
|
4.68 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,248,178 |
|
|
|
10,975 |
|
|
|
1.77 |
% |
|
|
863,801 |
|
|
|
7,322 |
|
|
|
1.71 |
% |
Nontaxable securities |
|
109,866 |
|
|
|
1,333 |
|
|
|
2.45 |
% |
|
|
103,529 |
|
|
|
1,441 |
|
|
|
2.81 |
% |
Total securities |
|
1,358,044 |
|
|
|
12,308 |
|
|
|
1.83 |
% |
|
|
967,330 |
|
|
|
8,763 |
|
|
|
1.83 |
% |
Federal funds sold and other |
|
131,148 |
|
|
|
813 |
|
|
|
1.25 |
% |
|
|
165,408 |
|
|
|
556 |
|
|
|
0.68 |
% |
Total interest-earning assets |
$ |
4,695,571 |
|
|
|
86,276 |
|
|
|
3.71 |
% |
|
$ |
3,928,090 |
|
|
|
74,130 |
|
|
|
3.81 |
% |
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand savings and money market deposits |
$ |
2,507,707 |
|
|
|
2,342 |
|
|
|
0.19 |
% |
|
$ |
2,073,658 |
|
|
|
1,865 |
|
|
|
0.18 |
% |
Time deposits |
|
630,189 |
|
|
|
1,563 |
|
|
|
0.50 |
% |
|
|
599,353 |
|
|
|
2,570 |
|
|
|
0.86 |
% |
Total interest-bearing deposits |
|
3,137,896 |
|
|
|
3,905 |
|
|
|
0.25 |
% |
|
|
2,673,011 |
|
|
|
4,435 |
|
|
|
0.33 |
% |
FHLB advances |
|
45,299 |
|
|
|
185 |
|
|
|
0.82 |
% |
|
|
23,911 |
|
|
|
145 |
|
|
|
1.22 |
% |
Other borrowings |
|
153,995 |
|
|
|
3,331 |
|
|
|
4.36 |
% |
|
|
131,687 |
|
|
|
3,161 |
|
|
|
4.84 |
% |
Total interest-bearing liabilities |
$ |
3,337,190 |
|
|
|
7,421 |
|
|
|
0.45 |
% |
|
$ |
2,828,609 |
|
|
|
7,741 |
|
|
|
0.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
78,855 |
|
|
|
|
|
|
|
|
|
|
$ |
66,389 |
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
3.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan
balances include nonaccrual loans. |
|
(2) Net interest
margin is calculated by dividing annualized net interest income by
average interest-earning assets for the period. |
|
(3) Tax exempt
income is not included in the above table on a tax-equivalent
basis. |
|
(4) Actual
unrounded values are used to calculate the reported yield or rate
disclosed. Accordingly, recalculations using the amounts in
thousands as disclosed in this report may not produce the same
amounts. |
|
|
|
TABLE 6. QUARTER-TO-DATE NET INTEREST INCOME
ANALYSIS (Unaudited)(Dollars in thousands)
|
For the three months ended |
|
|
For the three months ended |
|
|
June 30, 2022 |
|
|
June 30, 2021 |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
AverageYield/Rate(3)(4) |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
AverageYield/Rate(3)(4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
588,126 |
|
|
$ |
7,483 |
|
|
|
5.10 |
% |
|
$ |
826,647 |
|
|
$ |
11,729 |
|
|
|
5.69 |
% |
Commercial real estate |
|
1,210,185 |
|
|
|
14,521 |
|
|
|
4.81 |
% |
|
|
991,033 |
|
|
|
11,433 |
|
|
|
4.63 |
% |
Real estate construction |
|
384,317 |
|
|
|
4,297 |
|
|
|
4.48 |
% |
|
|
253,947 |
|
|
|
2,352 |
|
|
|
3.71 |
% |
Residential real estate |
|
597,680 |
|
|
|
5,206 |
|
|
|
3.49 |
% |
|
|
465,525 |
|
|
|
4,642 |
|
|
|
4.00 |
% |
Agricultural real estate |
|
202,038 |
|
|
|
2,643 |
|
|
|
5.25 |
% |
|
|
131,906 |
|
|
|
1,687 |
|
|
|
5.13 |
% |
Agricultural |
|
134,826 |
|
|
|
1,533 |
|
|
|
4.56 |
% |
|
|
94,407 |
|
|
|
1,024 |
|
|
|
4.35 |
% |
Consumer |
|
99,680 |
|
|
|
1,166 |
|
|
|
4.69 |
% |
|
|
89,680 |
|
|
|
943 |
|
|
|
4.22 |
% |
Total loans |
|
3,216,852 |
|
|
|
36,849 |
|
|
|
4.59 |
% |
|
|
2,853,145 |
|
|
|
33,810 |
|
|
|
4.75 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,210,828 |
|
|
|
5,584 |
|
|
|
1.85 |
% |
|
|
887,983 |
|
|
|
3,523 |
|
|
|
1.59 |
% |
Nontaxable securities |
|
108,271 |
|
|
|
678 |
|
|
|
2.51 |
% |
|
|
99,003 |
|
|
|
717 |
|
|
|
2.90 |
% |
Total securities |
|
1,319,099 |
|
|
|
6,262 |
|
|
|
1.90 |
% |
|
|
986,986 |
|
|
|
4,240 |
|
|
|
1.72 |
% |
Federal funds sold and other |
|
140,016 |
|
|
|
513 |
|
|
|
1.47 |
% |
|
|
124,502 |
|
|
|
268 |
|
|
|
0.86 |
% |
Total interest-earning assets |
$ |
4,675,967 |
|
|
|
43,624 |
|
|
|
3.74 |
% |
|
$ |
3,964,633 |
|
|
|
38,318 |
|
|
|
3.88 |
% |
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand savings and money market deposits |
$ |
2,481,602 |
|
|
|
1,346 |
|
|
|
0.22 |
% |
|
$ |
2,068,319 |
|
|
|
895 |
|
|
|
0.17 |
% |
Time deposits |
|
630,698 |
|
|
|
837 |
|
|
|
0.53 |
% |
|
|
587,733 |
|
|
|
1,130 |
|
|
|
0.77 |
% |
Total interest-bearing deposits |
|
3,112,300 |
|
|
|
2,183 |
|
|
|
0.28 |
% |
|
|
2,656,052 |
|
|
|
2,025 |
|
|
|
0.31 |
% |
FHLB advances |
|
80,266 |
|
|
|
176 |
|
|
|
0.88 |
% |
|
|
37,656 |
|
|
|
80 |
|
|
|
0.86 |
% |
Other borrowings |
|
157,796 |
|
|
|
1,699 |
|
|
|
4.32 |
% |
|
|
134,002 |
|
|
|
1,583 |
|
|
|
4.74 |
% |
Total interest-bearing liabilities |
$ |
3,350,362 |
|
|
|
4,058 |
|
|
|
0.49 |
% |
|
$ |
2,827,710 |
|
|
|
3,688 |
|
|
|
0.52 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,566 |
|
|
|
|
|
|
|
|
|
|
$ |
34,630 |
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
3.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
3.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan
balances include nonaccrual loans. |
|
(2) Net interest
margin is calculated by dividing annualized net interest income by
average interest-earning assets for the period. |
|
(3) Tax exempt
income is not included in the above table on a tax-equivalent
basis. |
|
|
|
TABLE 7. QUARTER-OVER-QUARTER NET INTEREST INCOME
ANALYSIS (Unaudited)(Dollars in thousands)
|
For the three months ended |
|
|
For the three months ended |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
AverageYield/Rate(3)(4) |
|
|
Average Outstanding Balance |
|
|
Interest Income/ Expense |
|
|
AverageYield/Rate(3)(4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
588,126 |
|
|
$ |
7,483 |
|
|
|
5.10 |
% |
|
$ |
575,563 |
|
|
$ |
7,761 |
|
|
|
5.47 |
% |
Commercial real estate |
|
1,210,185 |
|
|
|
14,521 |
|
|
|
4.81 |
% |
|
|
1,190,128 |
|
|
|
13,451 |
|
|
|
4.58 |
% |
Real estate construction |
|
384,317 |
|
|
|
4,297 |
|
|
|
4.48 |
% |
|
|
342,536 |
|
|
|
3,299 |
|
|
|
3.91 |
% |
Residential real estate |
|
597,680 |
|
|
|
5,206 |
|
|
|
3.49 |
% |
|
|
632,581 |
|
|
|
5,665 |
|
|
|
3.63 |
% |
Agricultural real estate |
|
202,038 |
|
|
|
2,643 |
|
|
|
5.25 |
% |
|
|
202,145 |
|
|
|
2,663 |
|
|
|
5.34 |
% |
Agricultural |
|
134,826 |
|
|
|
1,533 |
|
|
|
4.56 |
% |
|
|
149,676 |
|
|
|
2,316 |
|
|
|
6.28 |
% |
Consumer |
|
99,680 |
|
|
|
1,166 |
|
|
|
4.69 |
% |
|
|
103,158 |
|
|
|
1,151 |
|
|
|
4.53 |
% |
Total loans |
|
3,216,852 |
|
|
|
36,849 |
|
|
|
4.59 |
% |
|
|
3,195,787 |
|
|
|
36,306 |
|
|
|
4.61 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,210,828 |
|
|
|
5,584 |
|
|
|
1.85 |
% |
|
|
1,285,942 |
|
|
|
5,391 |
|
|
|
1.70 |
% |
Nontaxable securities |
|
108,271 |
|
|
|
678 |
|
|
|
2.51 |
% |
|
|
111,479 |
|
|
|
655 |
|
|
|
2.38 |
% |
Total securities |
|
1,319,099 |
|
|
|
6,262 |
|
|
|
1.90 |
% |
|
|
1,397,421 |
|
|
|
6,046 |
|
|
|
1.75 |
% |
Federal funds sold and other |
|
140,016 |
|
|
|
513 |
|
|
|
1.47 |
% |
|
|
122,181 |
|
|
|
300 |
|
|
|
1.00 |
% |
Total interest-earning assets |
$ |
4,675,967 |
|
|
|
43,624 |
|
|
|
3.74 |
% |
|
$ |
4,715,389 |
|
|
|
42,652 |
|
|
|
3.67 |
% |
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand savings and money market deposits |
$ |
2,481,602 |
|
|
|
1,346 |
|
|
|
0.22 |
% |
|
$ |
2,534,102 |
|
|
|
996 |
|
|
|
0.16 |
% |
Time deposits |
|
630,698 |
|
|
|
837 |
|
|
|
0.53 |
% |
|
|
629,675 |
|
|
|
726 |
|
|
|
0.47 |
% |
Total interest-bearing deposits |
|
3,112,300 |
|
|
|
2,183 |
|
|
|
0.28 |
% |
|
|
3,163,777 |
|
|
|
1,722 |
|
|
|
0.22 |
% |
FHLB advances |
|
80,266 |
|
|
|
176 |
|
|
|
0.88 |
% |
|
|
9,943 |
|
|
|
9 |
|
|
|
0.38 |
% |
Other borrowings |
|
157,796 |
|
|
|
1,699 |
|
|
|
4.32 |
% |
|
|
150,151 |
|
|
|
1,632 |
|
|
|
4.41 |
% |
Total interest-bearing liabilities |
$ |
3,350,362 |
|
|
|
4,058 |
|
|
|
0.49 |
% |
|
$ |
3,323,871 |
|
|
|
3,363 |
|
|
|
0.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
39,566 |
|
|
|
|
|
|
|
|
|
|
$ |
39,289 |
|
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
3.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan
balances include nonaccrual loans. |
|
(2) Net interest
margin is calculated by dividing annualized net interest income by
average interest-earning assets for the period. |
|
(3) Tax exempt
income is not included in the above table on a tax-equivalent
basis. |
|
|
|
TABLE 8. NON-GAAP FINANCIAL MEASURES
(Unaudited)(Dollars in thousands, except per share data)
|
As of and for the three months ended |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
June 30, |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
$ |
428,115 |
|
|
$ |
452,015 |
|
|
$ |
500,631 |
|
|
$ |
417,749 |
|
|
$ |
412,995 |
|
Less: goodwill |
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
|
|
31,601 |
|
Less: core deposit intangibles,
net |
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
Less: mortgage servicing asset,
net |
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
|
|
— |
|
Less: naming rights, net |
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
|
|
1,109 |
|
Tangible common equity |
$ |
361,169 |
|
|
$ |
382,393 |
|
|
$ |
429,924 |
|
|
$ |
372,087 |
|
|
$ |
366,292 |
|
Common shares issued at period
end |
|
16,106,818 |
|
|
|
16,454,966 |
|
|
|
16,760,115 |
|
|
|
14,365,785 |
|
|
|
14,360,172 |
|
Diluted common shares outstanding
at period end |
|
16,289,635 |
|
|
|
16,662,779 |
|
|
|
17,050,115 |
|
|
|
14,637,306 |
|
|
|
14,664,603 |
|
Book value per common share |
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
|
$ |
28.76 |
|
Tangible book value per common share |
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
|
$ |
25.51 |
|
Tangible book value per diluted common share |
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
|
$ |
24.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
$ |
4,268,216 |
|
Less: goodwill |
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
|
|
31,601 |
|
Less: core deposit intangibles,
net |
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
|
|
13,993 |
|
Less: mortgage servicing asset,
net |
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
|
|
— |
|
Less: naming rights, net |
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
|
|
1,109 |
|
Tangible assets |
$ |
4,935,210 |
|
|
$ |
5,009,001 |
|
|
$ |
5,066,924 |
|
|
$ |
4,217,606 |
|
|
$ |
4,221,513 |
|
Total stockholders' equity to total assets |
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
|
|
9.68 |
% |
Tangible common equity to tangible assets |
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
|
|
8.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average stockholders'
equity |
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,046 |
|
|
$ |
422,879 |
|
|
$ |
404,039 |
|
Less: average intangible
assets |
|
68,978 |
|
|
|
70,181 |
|
|
|
61,186 |
|
|
|
46,335 |
|
|
|
47,334 |
|
Average tangible common equity |
$ |
368,505 |
|
|
$ |
422,418 |
|
|
$ |
501,860 |
|
|
$ |
376,544 |
|
|
$ |
356,705 |
|
Net income (loss) allocable to
common stockholders |
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
Amortization of intangible
assets |
|
1,148 |
|
|
|
1,085 |
|
|
|
1,116 |
|
|
|
1,040 |
|
|
|
1,041 |
|
Less: tax effect of intangible
assets amortization |
|
241 |
|
|
|
228 |
|
|
|
234 |
|
|
|
218 |
|
|
|
219 |
|
Adjusted net income (loss) allocable to common
stockholders |
$ |
16,166 |
|
|
$ |
16,507 |
|
|
$ |
11,348 |
|
|
$ |
12,595 |
|
|
$ |
15,988 |
|
Return on total average stockholders' equity
(ROAE) annualized |
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
|
|
15.06 |
% |
Return on average tangible common equity
(ROATCE) annualized |
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
17.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
$ |
31,436 |
|
|
$ |
29,459 |
|
|
$ |
38,089 |
|
|
$ |
30,689 |
|
|
$ |
25,806 |
|
Loss on debt extinguishment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
372 |
|
|
|
— |
|
Less: merger expense |
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
|
|
460 |
|
Non-interest expense |
$ |
31,348 |
|
|
$ |
29,136 |
|
|
$ |
33,527 |
|
|
$ |
26,302 |
|
|
$ |
25,346 |
|
Net interest income |
$ |
39,566 |
|
|
$ |
39,289 |
|
|
$ |
37,215 |
|
|
$ |
38,975 |
|
|
$ |
34,630 |
|
Non-interest income |
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
|
|
9,100 |
|
Less: net gain on acquisition and
branch sales |
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
663 |
|
Less: net gains (losses) from
securities transactions |
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
|
|
— |
|
Adjusted non-interest income,
adjusted |
$ |
9,129 |
|
|
$ |
8,982 |
|
|
$ |
9,191 |
|
|
$ |
7,450 |
|
|
$ |
8,437 |
|
Net interest income plus adjusted non-interest
income |
$ |
48,695 |
|
|
$ |
48,271 |
|
|
$ |
46,406 |
|
|
$ |
46,425 |
|
|
$ |
43,067 |
|
Non-interest expense to net interest
income plus non-interest income |
|
63.89 |
% |
|
|
60.98 |
% |
|
|
82.06 |
% |
|
|
65.57 |
% |
|
|
59.01 |
% |
Efficiency ratio |
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
|
|
58.85 |
% |
Net income (loss) allocable to
common stockholders |
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
|
$ |
15,166 |
|
Add: income tax provision |
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
|
|
4,415 |
|
Add: provision (reversal) of
credit losses |
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
|
|
(1,657 |
) |
Adjusted net income |
$ |
17,767 |
|
|
$ |
18,852 |
|
|
$ |
8,325 |
|
|
$ |
16,117 |
|
|
$ |
17,924 |
|
Total average assets |
$ |
5,067,687 |
|
|
$ |
5,108,120 |
|
|
$ |
5,068,301 |
|
|
$ |
4,275,298 |
|
|
$ |
4,231,439 |
|
Total average stockholders'
equity |
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,023 |
|
|
$ |
422,879 |
|
|
$ |
404,039 |
|
Return on average assets (ROAA) annualized |
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
|
|
1.44 |
% |
Adjusted return on average assets |
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
|
|
1.70 |
% |
Adjusted return on average equity |
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
|
|
17.79 |
% |
Equity Bancshares (NASDAQ:EQBK)
Historical Stock Chart
From Jun 2024 to Jul 2024
Equity Bancshares (NASDAQ:EQBK)
Historical Stock Chart
From Jul 2023 to Jul 2024