Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “the Company”,
“we,” “us,” “our”), the Wichita-based holding company of Equity
Bank, reported net income of $15.2 million and $0.93 earnings per
diluted share for the quarter ended September 30, 2022.
"In 2022, our Company has realized meaningful,
organic growth while emphasizing return to our stockholders via
earnings, share buybacks, and an increasing dividend. Annualized
growth within our commercial and commercial real estate loan
portfolios of 17.13% is a credit to our sales and operational
teams,” said Brad S. Elliott, Chairman and CEO, Equity Bancshares,
Inc. “We have been diligent in enhancing our sales process,
expanding our marketing geography, and hiring exceptional operators
which has and will continue to drive our Company’s success.”
“At the end of the quarter, our classified asset
ratio is down more than 50% year-to-date and at an all-time low for
our Company,” continued Mr. Elliott. “The committed efforts of our
sales and credit teams to source and underwrite strong credits
while meeting the financing needs of the communities we serve
allows our Company to hold true to its mission as a community
bank.”
Notable Items:
- During the third quarter, the Company realized continued loan
growth excluding the impact of PPP assets and sold branches
bringing annualized loan growth year-to-date to 7.01%.
- During the quarter, the Company realized linked period Net
Interest Margin growth of 23 basis points, and Net Interest Income
growth of $2.38 million.
- The Company continued to emphasize investor returns through
repurchase of 126,900 shares during the quarter, at an average
price of $32.51, as well as the expansion of our quarterly dividend
program to $0.10 per share. Also during the quarter, the Company’s
Board authorized the repurchase of up to 1 million shares and the
Company received non-objection from the Federal Reserve Bank of
Kansas City related to the repurchase plan.
Financial Results for the Quarter Ended
September 30, 2022
Net income allocable to common stockholders was
$15.2 million, or $0.93 per diluted share, for the three months
ended September 30, 2022, as compared to $15.3 million, or $0.94
per diluted share, for the three months ended June 30, 2022. The
decrease for the second quarter of 2022 is primarily driven by
income taxes as a true-up of rate was experienced in the second
quarter that, as expected, did not repeat. Pre-tax income increased
$1.9 million as the Company's net interest income benefitted from
increasing interest rates.
Net Interest Income
Net interest income was $41.9 million for the
three months ended September 30, 2022, as compared to $39.6 million
for the three months ended June 30, 2022, an increase of $2.4
million, or 6.1%. The yield on interest-earning assets increased 44
basis points to 4.18% during the quarter ended September 30, 2022,
as compared to 3.74% for the quarter ended June 30, 2022. The cost
of interest-bearing deposits increased by 29 basis points during
the quarter, moving from 0.28% at June 30, 2022 to 0.57% at
September 30, 2022.
Provision for Credit Losses
During the three months ended September 30, 2022,
there was a net release of $136 thousand compared to a provision to
the allowance for credit losses of $824 thousand in the previous
quarter. The minimal release of provision for the quarter is the
result of having a relatively similar sized loan portfolio and
similar realized loss rates; however, the Company continues to
estimate the allowance for credit loss with assumptions that
anticipate slowing prepayments rates and continued market
disruption caused by elevated inflation, supply chain issues and
the impact of monetary policy on consumers and businesses. For the
three months ended September 30, 2022, we had net charge-offs of
$1.6 million as compared to $176 thousand for the three months
ended June 30, 2022.
Non-Interest Income
Total non-interest income was $9.0 million for the
three months ended September 30, 2022, as compared to $9.6 million
for the three months ended June 30, 2022, or a decrease of 6.9%,
quarter over quarter. The $600 thousand decrease was primarily due
to a decrease in net gain on acquisition and branch sales of $540
thousand.
Non-Interest Expense
Total non-interest expense for the quarter ended
September 30, 2022, was $32.2 million as compared to $31.4 million
for the quarter ended June 30, 2022. The $800 thousand change was
primarily due to an increase in data processing of $496 thousand
and an increase in the write-off of tax investments of $423
thousand for the quarter ended September 30, 2022, compared to the
quarter ended June 30, 2022.
Asset Quality
As of September 30, 2022, Equity’s allowance for
credit losses to total loans decreased to 1.4% as compared to 1.5%
at June 30, 2022. Nonperforming assets were $29.7 million as of
September, 2022, or 0.6% of total assets, compared to $37.0 million
at June 30, 2022, or 0.7% of total assets. Non-accrual loans were
$23.1 million at September 30, 2022, as compared to $18.9 million
at June 30, 2022. Total classified assets, including loans rated
special mention or worse, other real estate owned and other
repossessed assets were $63.1 million, or 11.0% of regulatory
capital, down from $72.1 million, or 13.1% of regulatory capital as
of June 30, 2022.
During the quarter ended September 30, 2022,
non-performing assets decreased $7.3 million due to decreases in
other repossessed assets of $8.7 million and other real estate
owned of $2.5 million, partially offset by increases in non-accrual
loans of $4.3 million.
Regulatory Capital
The Company’s ratio of common equity tier 1
capital to risk-weighted assets was 12.1%, the total capital to
risk-weighted assets was 16.0% and the total leverage ratio was
9.7% at September 30, 2022. At June 30, 2022, the Company’s common
equity tier 1 capital to risk-weighted assets ratio was 12.1%, the
total capital to risk-weighted assets ratio was 16.0% and the total
leverage ratio was 9.1%.
The Company’s subsidiary, Equity Bank, had a ratio
of common equity tier 1 capital to risk-weighted assets of 14.1%, a
ratio of total capital to risk-weighted assets of 15.4% and a total
leverage ratio of 10.5% at September 30, 2022. At June 30, 2022,
Equity Bank’s ratio of common equity tier 1 capital to
risk-weighted assets was 13.9%, the ratio of total capital to
risk-weighted assets was 15.1% and the total leverage ratio was
9.9%.
Non-GAAP Financial Measures
In addition to evaluating the Company’s results of
operations in accordance with accounting principles generally
accepted in the United States of America (“GAAP”), management
periodically supplements this evaluation with an analysis of
certain non-GAAP financial measures that are intended to provide
the reader with additional perspectives on operating results,
financial condition and performance trends, while facilitating
comparisons with the performance of other financial institutions.
Non-GAAP financial measures are not a substitute for GAAP measures,
rather, they should be read and used in conjunction with the
Company’s GAAP financial information.
The efficiency ratio is a common comparable metric
used by banks to understand the expense structure relative to total
revenue. In other words, for every dollar of total revenue
recognized, how much of that dollar is expended. To improve the
comparability of the ratio to our peers, non-core items are
excluded. To improve transparency and acknowledging that banks are
not consistent in their definition of the efficiency ratio, we
include our calculation of this non-GAAP measure.
Return on average assets before income tax
provision and provision for loan losses is a measure that the
Company uses to understand fundamental operating performance before
these expenses. Used as a ratio relative to average assets, we
believe it demonstrates “core” performance and can be viewed as an
alternative measure of how efficiently the Company services its
asset base. Used as a ratio relative to average equity, it can
function as an alternative measure of the Company’s earnings
performance in relationship to its equity.
Tangible common equity and related measures are
non-GAAP financial measures that exclude the impact of intangible
assets, net of deferred taxes, and their related amortization.
These financial measures are useful for evaluating the performance
of a business consistently, whether acquired or developed
internally. Return on average tangible common equity is used by
management and readers of our financial statements to understand
how efficiently the Company is deploying its common equity.
Companies that are able to demonstrate more efficient use of common
equity are more likely to be viewed favorably by current and
prospective investors.
The Company believes that disclosing these
non-GAAP financial measures is both useful internally and is
expected by our investors and analysts in order to understand the
overall performance of the Company. Other companies may calculate
and define their non-GAAP financial measures and supplemental data
differently. A reconciliation of GAAP financial measures to
non-GAAP measures and other performance ratios, as adjusted, are
included in Table 6 in the following press release tables.
Conference Call and Webcast
Equity’s Chairman and Chief Executive Officer,
Brad Elliott, and Chief Financial Officer, Eric Newell, will hold a
conference call and webcast to discuss third quarter results on
Wednesday, October 19, 2022 at 10 a.m. eastern time or 9 a.m.
central time.
A live webcast of the call will be available on
the Company’s website at investor.equitybank.com. To access the
call by phone, please go to this registration link, and you will be
provided with dial in details. Investors, news media, and other
participants are encouraged to dial into the conference call ten
minutes ahead of the scheduled start time.
A replay of the call and webcast will be available
two hours following the close of the call until October 26, 2022,
accessible at investor.equitybank.com.
About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the holding company for Equity Bank,
offering a full range of financial solutions, including commercial
loans, consumer banking, mortgage loans, trust and wealth
management services and treasury management services, while
delivering the high-quality, relationship-based customer service of
a community bank. Equity’s common stock is traded on the NASDAQ
Global Select Market under the symbol “EQBK.” Learn more at
www.equitybank.com.
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
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. CONSOLIDATED STATEMENTS OF
INCOME (Unaudited) (Dollars in thousands, except per share
data)
|
|
Three months ended September
30, |
|
|
Nine months ended September
30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Interest and
dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
41,555 |
|
|
$ |
37,581 |
|
|
$ |
114,710 |
|
|
$ |
102,392 |
|
Securities, taxable |
|
|
5,792 |
|
|
|
3,920 |
|
|
|
16,767 |
|
|
|
11,242 |
|
Securities, nontaxable |
|
|
687 |
|
|
|
655 |
|
|
|
2,020 |
|
|
|
2,096 |
|
Federal funds sold and other |
|
|
514 |
|
|
|
290 |
|
|
|
1,327 |
|
|
|
846 |
|
Total interest and dividend income |
|
|
48,548 |
|
|
|
42,446 |
|
|
|
134,824 |
|
|
|
116,576 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
4,403 |
|
|
|
1,881 |
|
|
|
8,308 |
|
|
|
6,316 |
|
Federal funds purchased and retail repurchase agreements |
|
|
71 |
|
|
|
24 |
|
|
|
150 |
|
|
|
72 |
|
Federal Home Loan Bank advances |
|
|
409 |
|
|
|
10 |
|
|
|
594 |
|
|
|
155 |
|
Subordinated debt |
|
|
1,721 |
|
|
|
1,556 |
|
|
|
4,973 |
|
|
|
4,669 |
|
Total interest expense |
|
|
6,604 |
|
|
|
3,471 |
|
|
|
14,025 |
|
|
|
11,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
41,944 |
|
|
|
38,975 |
|
|
|
120,799 |
|
|
|
105,364 |
|
Provision
(reversal) for credit losses |
|
|
(136 |
) |
|
|
1,058 |
|
|
|
276 |
|
|
|
(6,355 |
) |
Net
interest income after provision (reversal) for credit
losses |
|
|
42,080 |
|
|
|
37,917 |
|
|
|
120,523 |
|
|
|
111,719 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,788 |
|
|
|
2,360 |
|
|
|
7,927 |
|
|
|
6,125 |
|
Debit card income |
|
|
2,682 |
|
|
|
2,574 |
|
|
|
8,120 |
|
|
|
7,603 |
|
Mortgage banking |
|
|
310 |
|
|
|
801 |
|
|
|
1,300 |
|
|
|
2,584 |
|
Increase in value of bank-owned life insurance |
|
|
754 |
|
|
|
1,169 |
|
|
|
2,355 |
|
|
|
2,446 |
|
Net gain on acquisition and branch sales |
|
|
— |
|
|
|
— |
|
|
|
540 |
|
|
|
585 |
|
Net gains (losses) from securities transactions |
|
|
(17 |
) |
|
|
381 |
|
|
|
(9 |
) |
|
|
398 |
|
Other |
|
|
2,452 |
|
|
|
546 |
|
|
|
7,395 |
|
|
|
3,902 |
|
Total non-interest income |
|
|
8,969 |
|
|
|
7,831 |
|
|
|
27,628 |
|
|
|
23,643 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
15,442 |
|
|
|
13,588 |
|
|
|
45,893 |
|
|
|
39,079 |
|
Net occupancy and equipment |
|
|
3,127 |
|
|
|
2,475 |
|
|
|
9,304 |
|
|
|
7,170 |
|
Data processing |
|
|
4,138 |
|
|
|
3,257 |
|
|
|
11,549 |
|
|
|
9,394 |
|
Professional fees |
|
|
1,265 |
|
|
|
1,076 |
|
|
|
3,547 |
|
|
|
3,148 |
|
Advertising and business development |
|
|
1,191 |
|
|
|
760 |
|
|
|
3,139 |
|
|
|
2,241 |
|
Telecommunications |
|
|
487 |
|
|
|
439 |
|
|
|
1,399 |
|
|
|
1,531 |
|
FDIC insurance |
|
|
340 |
|
|
|
465 |
|
|
|
780 |
|
|
|
1,305 |
|
Courier and postage |
|
|
436 |
|
|
|
344 |
|
|
|
1,348 |
|
|
|
1,040 |
|
Free nationwide ATM cost |
|
|
551 |
|
|
|
519 |
|
|
|
1,593 |
|
|
|
1,504 |
|
Amortization of core deposit intangibles |
|
|
957 |
|
|
|
1,030 |
|
|
|
3,118 |
|
|
|
3,094 |
|
Loan expense |
|
|
174 |
|
|
|
207 |
|
|
|
566 |
|
|
|
626 |
|
Other real estate owned |
|
|
188 |
|
|
|
(342 |
) |
|
|
201 |
|
|
|
(805 |
) |
Loss on debt extinguishment |
|
|
— |
|
|
|
372 |
|
|
|
— |
|
|
|
372 |
|
Merger expenses |
|
|
115 |
|
|
|
4,015 |
|
|
|
526 |
|
|
|
4,627 |
|
Other |
|
|
3,825 |
|
|
|
2,484 |
|
|
|
10,168 |
|
|
|
7,050 |
|
Total non-interest expense |
|
|
32,236 |
|
|
|
30,689 |
|
|
|
93,131 |
|
|
|
81,376 |
|
Income
(loss) before income tax |
|
|
18,813 |
|
|
|
15,059 |
|
|
|
55,020 |
|
|
|
53,986 |
|
Provision
for income taxes |
|
|
3,642 |
|
|
|
3,286 |
|
|
|
8,940 |
|
|
|
11,972 |
|
Net
income (loss) and net income (loss) allocable to common
stockholders |
|
$ |
15,171 |
|
|
$ |
11,773 |
|
|
$ |
46,080 |
|
|
$ |
42,014 |
|
Basic
earnings (loss) per share |
|
$ |
0.94 |
|
|
$ |
0.82 |
|
|
$ |
2.83 |
|
|
$ |
2.92 |
|
Diluted
earnings (loss) per share |
|
$ |
0.93 |
|
|
$ |
0.80 |
|
|
$ |
2.79 |
|
|
$ |
2.86 |
|
Weighted
average common shares |
|
|
16,056,658 |
|
|
|
14,384,302 |
|
|
|
16,303,586 |
|
|
|
14,397,146 |
|
Weighted
average diluted common shares |
|
|
16,273,231 |
|
|
|
14,669,312 |
|
|
|
16,516,787 |
|
|
|
14,688,092 |
|
TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS
OF INCOME (Unaudited) (Dollars in thousands, except per
share data)
|
|
As of and
for the three months ended |
|
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
September 30, 2021 |
|
Interest and
dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
41,555 |
|
|
$ |
36,849 |
|
|
$ |
36,306 |
|
|
$ |
34,942 |
|
|
$ |
37,581 |
|
Securities, taxable |
|
|
5,792 |
|
|
|
5,584 |
|
|
|
5,391 |
|
|
|
4,754 |
|
|
|
3,920 |
|
Securities, nontaxable |
|
|
687 |
|
|
|
678 |
|
|
|
655 |
|
|
|
747 |
|
|
|
655 |
|
Federal funds sold and other |
|
|
514 |
|
|
|
513 |
|
|
|
300 |
|
|
|
349 |
|
|
|
290 |
|
Total interest and dividend income |
|
|
48,548 |
|
|
|
43,624 |
|
|
|
42,652 |
|
|
|
40,792 |
|
|
|
42,446 |
|
Interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
4,403 |
|
|
|
2,183 |
|
|
|
1,722 |
|
|
|
1,939 |
|
|
|
1,881 |
|
Federal funds purchased and retail repurchase agreements |
|
|
71 |
|
|
|
46 |
|
|
|
33 |
|
|
|
32 |
|
|
|
24 |
|
Federal Home Loan Bank advances |
|
|
409 |
|
|
|
176 |
|
|
|
9 |
|
|
|
14 |
|
|
|
10 |
|
Subordinated debt |
|
|
1,721 |
|
|
|
1,653 |
|
|
|
1,599 |
|
|
|
1,592 |
|
|
|
1,556 |
|
Total interest expense |
|
|
6,604 |
|
|
|
4,058 |
|
|
|
3,363 |
|
|
|
3,577 |
|
|
|
3,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
|
41,944 |
|
|
|
39,566 |
|
|
|
39,289 |
|
|
|
37,215 |
|
|
|
38,975 |
|
Provision
(reversal) for credit losses |
|
|
(136 |
) |
|
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
Net
interest income after provision (reversal) for credit
losses |
|
|
42,080 |
|
|
|
38,742 |
|
|
|
39,701 |
|
|
|
39,340 |
|
|
|
37,917 |
|
Non-interest
income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,788 |
|
|
|
2,617 |
|
|
|
2,522 |
|
|
|
2,471 |
|
|
|
2,360 |
|
Debit card income |
|
|
2,682 |
|
|
|
2,810 |
|
|
|
2,628 |
|
|
|
2,633 |
|
|
|
2,574 |
|
Mortgage banking |
|
|
310 |
|
|
|
428 |
|
|
|
562 |
|
|
|
722 |
|
|
|
801 |
|
Increase in value of bank-owned life insurance |
|
|
754 |
|
|
|
736 |
|
|
|
865 |
|
|
|
1,060 |
|
|
|
1,169 |
|
Net gain on acquisition and branch sales |
|
|
— |
|
|
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net gains (losses) from securities transactions |
|
|
(17 |
) |
|
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
Other |
|
|
2,452 |
|
|
|
2,538 |
|
|
|
2,405 |
|
|
|
2,305 |
|
|
|
546 |
|
Total non-interest income |
|
|
8,969 |
|
|
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
Non-interest
expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
15,442 |
|
|
|
15,383 |
|
|
|
15,068 |
|
|
|
15,119 |
|
|
|
13,588 |
|
Net occupancy and equipment |
|
|
3,127 |
|
|
|
3,007 |
|
|
|
3,170 |
|
|
|
2,967 |
|
|
|
2,475 |
|
Data processing |
|
|
4,138 |
|
|
|
3,642 |
|
|
|
3,769 |
|
|
|
3,867 |
|
|
|
3,257 |
|
Professional fees |
|
|
1,265 |
|
|
|
1,111 |
|
|
|
1,171 |
|
|
|
1,565 |
|
|
|
1,076 |
|
Advertising and business development |
|
|
1,191 |
|
|
|
972 |
|
|
|
976 |
|
|
|
1,129 |
|
|
|
760 |
|
Telecommunications |
|
|
487 |
|
|
|
442 |
|
|
|
470 |
|
|
|
435 |
|
|
|
439 |
|
FDIC insurance |
|
|
340 |
|
|
|
260 |
|
|
|
180 |
|
|
|
360 |
|
|
|
465 |
|
Courier and postage |
|
|
436 |
|
|
|
489 |
|
|
|
423 |
|
|
|
389 |
|
|
|
344 |
|
Free nationwide ATM cost |
|
|
551 |
|
|
|
541 |
|
|
|
501 |
|
|
|
515 |
|
|
|
519 |
|
Amortization of core deposit intangibles |
|
|
957 |
|
|
|
1,111 |
|
|
|
1,050 |
|
|
|
1,080 |
|
|
|
1,030 |
|
Loan expense |
|
|
174 |
|
|
|
207 |
|
|
|
185 |
|
|
|
308 |
|
|
|
207 |
|
Other real estate owned |
|
|
188 |
|
|
|
14 |
|
|
|
(1 |
) |
|
|
617 |
|
|
|
(342 |
) |
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
372 |
|
Merger expenses |
|
|
115 |
|
|
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
Other |
|
|
3,825 |
|
|
|
4,169 |
|
|
|
2,174 |
|
|
|
5,176 |
|
|
|
2,484 |
|
Total non-interest expense |
|
|
32,236 |
|
|
|
31,436 |
|
|
|
29,459 |
|
|
|
38,089 |
|
|
|
30,689 |
|
Income
(loss) before income tax |
|
|
18,813 |
|
|
|
16,943 |
|
|
|
19,264 |
|
|
|
10,450 |
|
|
|
15,059 |
|
Provision
for income taxes (benefit) |
|
|
3,642 |
|
|
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
Net
income (loss) and net income (loss) allocable to common
stockholders |
|
$ |
15,171 |
|
|
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
Basic
earnings (loss) per share |
|
$ |
0.94 |
|
|
$ |
0.95 |
|
|
$ |
0.94 |
|
|
$ |
0.62 |
|
|
$ |
0.82 |
|
Diluted
earnings (loss) per share |
|
$ |
0.93 |
|
|
$ |
0.94 |
|
|
$ |
0.93 |
|
|
$ |
0.61 |
|
|
$ |
0.80 |
|
Weighted
average common shares |
|
|
16,056,658 |
|
|
|
16,206,978 |
|
|
|
16,652,556 |
|
|
|
16,865,167 |
|
|
|
14,384,302 |
|
Weighted
average diluted common shares |
|
|
16,273,231 |
|
|
|
16,413,248 |
|
|
|
16,869,152 |
|
|
|
17,141,174 |
|
|
|
14,669,312 |
|
TABLE 3. CONSOLIDATED BALANCE
SHEETS (Unaudited) (Dollars in thousands)
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
March 31, 2022 |
|
|
December 31, 2021 |
|
|
September 30, 2021 |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks |
|
$ |
155,039 |
|
|
$ |
103,126 |
|
|
$ |
89,764 |
|
|
$ |
259,131 |
|
|
$ |
141,645 |
|
Federal
funds sold |
|
|
374 |
|
|
|
458 |
|
|
|
286 |
|
|
|
823 |
|
|
|
673 |
|
Cash and cash equivalents |
|
|
155,413 |
|
|
|
103,584 |
|
|
|
90,050 |
|
|
|
259,954 |
|
|
|
142,318 |
|
Available-for-sale securities |
|
|
1,198,962 |
|
|
|
1,288,180 |
|
|
|
1,352,894 |
|
|
|
1,327,442 |
|
|
|
1,157,423 |
|
Loans held
for sale |
|
|
1,518 |
|
|
|
1,714 |
|
|
|
1,575 |
|
|
|
4,214 |
|
|
|
4,108 |
|
Loans, net
of allowance for credit losses(1) |
|
|
3,208,524 |
|
|
|
3,175,208 |
|
|
|
3,194,987 |
|
|
|
3,107,262 |
|
|
|
2,633,148 |
|
Other real
estate owned, net |
|
|
10,412 |
|
|
|
12,969 |
|
|
|
9,897 |
|
|
|
9,523 |
|
|
|
10,267 |
|
Premises and
equipment, net |
|
|
100,566 |
|
|
|
101,212 |
|
|
|
103,168 |
|
|
|
104,038 |
|
|
|
90,727 |
|
Bank-owned
life insurance |
|
|
122,418 |
|
|
|
121,665 |
|
|
|
120,928 |
|
|
|
120,787 |
|
|
|
103,431 |
|
Federal
Reserve Bank and Federal Home Loan Bank stock |
|
|
24,428 |
|
|
|
21,479 |
|
|
|
19,890 |
|
|
|
17,510 |
|
|
|
14,540 |
|
Interest
receivable |
|
|
18,497 |
|
|
|
16,519 |
|
|
|
16,923 |
|
|
|
18,048 |
|
|
|
15,519 |
|
Goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
Core deposit
intangibles, net |
|
|
11,598 |
|
|
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
Other |
|
|
94,978 |
|
|
|
93,971 |
|
|
|
100,016 |
|
|
|
99,509 |
|
|
|
47,223 |
|
Total assets |
|
$ |
5,000,415 |
|
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
$ |
1,217,094 |
|
|
$ |
1,194,863 |
|
|
$ |
1,255,793 |
|
|
$ |
1,244,117 |
|
|
$ |
984,436 |
|
Total non-interest-bearing deposits |
|
|
1,217,094 |
|
|
|
1,194,863 |
|
|
|
1,255,793 |
|
|
|
1,244,117 |
|
|
|
984,436 |
|
Demand, savings and money market |
|
|
2,335,847 |
|
|
|
2,445,545 |
|
|
|
2,511,478 |
|
|
|
2,522,289 |
|
|
|
2,092,849 |
|
Time |
|
|
673,670 |
|
|
|
651,363 |
|
|
|
612,399 |
|
|
|
653,598 |
|
|
|
585,492 |
|
Total interest-bearing deposits |
|
|
3,009,517 |
|
|
|
3,096,908 |
|
|
|
3,123,877 |
|
|
|
3,175,887 |
|
|
|
2,678,341 |
|
Total deposits |
|
|
4,226,611 |
|
|
|
4,291,771 |
|
|
|
4,379,670 |
|
|
|
4,420,004 |
|
|
|
3,662,777 |
|
Federal
funds purchased and retail repurchase agreements |
|
|
47,443 |
|
|
|
52,750 |
|
|
|
48,199 |
|
|
|
56,006 |
|
|
|
39,137 |
|
Federal Home
Loan Bank advances |
|
|
186,001 |
|
|
|
80,000 |
|
|
|
50,000 |
|
|
|
— |
|
|
|
— |
|
Subordinated
debt |
|
|
96,263 |
|
|
|
96,135 |
|
|
|
96,010 |
|
|
|
95,885 |
|
|
|
88,030 |
|
Contractual
obligations |
|
|
15,562 |
|
|
|
15,813 |
|
|
|
17,307 |
|
|
|
17,692 |
|
|
|
18,771 |
|
Interest
payable and other liabilities |
|
|
32,729 |
|
|
|
37,572 |
|
|
|
35,422 |
|
|
|
47,413 |
|
|
|
36,804 |
|
Total liabilities |
|
|
4,604,609 |
|
|
|
4,574,041 |
|
|
|
4,626,608 |
|
|
|
4,637,000 |
|
|
|
3,845,519 |
|
Commitments
and contingent liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
204 |
|
|
|
204 |
|
|
|
204 |
|
|
|
203 |
|
|
|
178 |
|
Additional paid-in capital |
|
|
482,668 |
|
|
|
480,897 |
|
|
|
480,106 |
|
|
|
478,862 |
|
|
|
392,321 |
|
Retained earnings |
|
|
130,114 |
|
|
|
116,576 |
|
|
|
102,632 |
|
|
|
88,324 |
|
|
|
79,226 |
|
Accumulated other comprehensive income (loss), net of tax |
|
|
(120,918 |
) |
|
|
(77,426 |
) |
|
|
(50,012 |
) |
|
|
1,776 |
|
|
|
9,475 |
|
Treasury stock |
|
|
(96,262 |
) |
|
|
(92,136 |
) |
|
|
(80,915 |
) |
|
|
(68,534 |
) |
|
|
(63,451 |
) |
Total stockholders’ equity |
|
|
395,806 |
|
|
|
428,115 |
|
|
|
452,015 |
|
|
|
500,631 |
|
|
|
417,749 |
|
Total liabilities and stockholders’ equity |
|
$ |
5,000,415 |
|
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Allowance for credit losses |
|
$ |
46,499 |
|
|
$ |
48,238 |
|
|
$ |
47,590 |
|
|
$ |
48,365 |
|
|
$ |
52,763 |
|
TABLE 4. SELECTED FINANCIAL
HIGHLIGHTS (Unaudited) (Dollars in thousands, except per
share data)
|
|
As of and
for the three months ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
Loans Held For Investment by Type |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
$ |
1,655,646 |
|
|
$ |
1,643,068 |
|
|
$ |
1,552,134 |
|
|
$ |
1,486,148 |
|
|
$ |
1,308,707 |
|
Commercial and industrial |
|
|
607,722 |
|
|
|
578,899 |
|
|
|
629,181 |
|
|
|
567,497 |
|
|
|
569,513 |
|
Residential real estate |
|
|
573,431 |
|
|
|
578,936 |
|
|
|
613,928 |
|
|
|
638,087 |
|
|
|
490,633 |
|
Agricultural real estate |
|
|
200,415 |
|
|
|
197,938 |
|
|
|
198,844 |
|
|
|
198,330 |
|
|
|
138,793 |
|
Agricultural |
|
|
115,048 |
|
|
|
124,753 |
|
|
|
150,077 |
|
|
|
166,975 |
|
|
|
93,767 |
|
Consumer |
|
|
102,761 |
|
|
|
99,852 |
|
|
|
98,413 |
|
|
|
98,590 |
|
|
|
84,498 |
|
Total loans held-for-investment |
|
|
3,255,023 |
|
|
|
3,223,446 |
|
|
|
3,242,577 |
|
|
|
3,155,627 |
|
|
|
2,685,911 |
|
Allowance for credit losses |
|
|
(46,499 |
) |
|
|
(48,238 |
) |
|
|
(47,590 |
) |
|
|
(48,365 |
) |
|
|
(52,763 |
) |
Net loans held for investment |
|
$ |
3,208,524 |
|
|
$ |
3,175,208 |
|
|
$ |
3,194,987 |
|
|
$ |
3,107,262 |
|
|
$ |
2,633,148 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total loans |
|
|
1.43 |
% |
|
|
1.50 |
% |
|
|
1.47 |
% |
|
|
1.53 |
% |
|
|
1.96 |
% |
Past due or nonaccrual loans to total loans |
|
|
0.94 |
% |
|
|
0.78 |
% |
|
|
0.82 |
% |
|
|
1.18 |
% |
|
|
2.78 |
% |
Nonperforming assets to total assets |
|
|
0.59 |
% |
|
|
0.74 |
% |
|
|
0.74 |
% |
|
|
1.28 |
% |
|
|
1.74 |
% |
Nonperforming assets to total loans plus other real estate
owned |
|
|
0.91 |
% |
|
|
1.14 |
% |
|
|
1.15 |
% |
|
|
2.07 |
% |
|
|
2.76 |
% |
Classified assets to bank total regulatory capital |
|
|
11.03 |
% |
|
|
13.08 |
% |
|
|
17.12 |
% |
|
|
25.34 |
% |
|
|
24.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balance Sheet Data (QTD
Average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
1,272,414 |
|
|
$ |
1,319,099 |
|
|
$ |
1,397,421 |
|
|
$ |
1,330,267 |
|
|
$ |
1,061,178 |
|
Total gross loans receivable |
|
|
3,240,998 |
|
|
|
3,216,853 |
|
|
|
3,195,787 |
|
|
|
3,181,279 |
|
|
|
2,748,202 |
|
Interest-earning assets |
|
|
4,602,568 |
|
|
|
4,675,967 |
|
|
|
4,715,389 |
|
|
|
4,713,817 |
|
|
|
4,005,509 |
|
Total assets |
|
|
4,988,755 |
|
|
|
5,067,686 |
|
|
|
5,108,120 |
|
|
|
5,068,278 |
|
|
|
4,275,298 |
|
Interest-bearing deposits |
|
|
3,081,245 |
|
|
|
3,112,300 |
|
|
|
3,163,777 |
|
|
|
3,101,657 |
|
|
|
2,702,040 |
|
Borrowings |
|
|
221,514 |
|
|
|
238,062 |
|
|
|
160,094 |
|
|
|
165,941 |
|
|
|
132,581 |
|
Total interest-bearing liabilities |
|
|
3,302,759 |
|
|
|
3,350,362 |
|
|
|
3,323,871 |
|
|
|
3,267,598 |
|
|
|
2,834,621 |
|
Total deposits |
|
|
4,283,855 |
|
|
|
4,340,196 |
|
|
|
4,393,879 |
|
|
|
4,342,732 |
|
|
|
3,686,169 |
|
Total liabilities |
|
|
4,552,564 |
|
|
|
4,630,204 |
|
|
|
4,615,521 |
|
|
|
4,505,232 |
|
|
|
3,852,419 |
|
Total stockholders' equity |
|
|
436,191 |
|
|
|
437,483 |
|
|
|
492,599 |
|
|
|
563,046 |
|
|
|
422,879 |
|
Tangible common equity* |
|
|
369,746 |
|
|
|
368,505 |
|
|
|
422,418 |
|
|
|
501,860 |
|
|
|
376,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) annualized |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
Return on average assets before income tax and provision for
loan losses* |
|
|
1.49 |
% |
|
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
Return on average equity (ROAE) annualized |
|
|
13.80 |
% |
|
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
Return on average equity before income tax and provision for
loan losses* |
|
|
16.99 |
% |
|
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
Return on average tangible common equity (ROATCE)
annualized* |
|
|
17.12 |
% |
|
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
Yield on loans annualized |
|
|
5.09 |
% |
|
|
4.59 |
% |
|
|
4.61 |
% |
|
|
4.36 |
% |
|
|
5.43 |
% |
Cost of interest-bearing deposits annualized |
|
|
0.57 |
% |
|
|
0.28 |
% |
|
|
0.22 |
% |
|
|
0.25 |
% |
|
|
0.28 |
% |
Cost of total deposits annualized |
|
|
0.41 |
% |
|
|
0.20 |
% |
|
|
0.16 |
% |
|
|
0.18 |
% |
|
|
0.20 |
% |
Net interest margin annualized |
|
|
3.62 |
% |
|
|
3.39 |
% |
|
|
3.38 |
% |
|
|
3.13 |
% |
|
|
3.86 |
% |
Efficiency ratio* |
|
|
63.07 |
% |
|
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
Non-interest income / average assets |
|
|
0.71 |
% |
|
|
0.76 |
% |
|
|
0.72 |
% |
|
|
0.72 |
% |
|
|
0.73 |
% |
Non-interest expense / average assets |
|
|
2.56 |
% |
|
|
2.49 |
% |
|
|
2.34 |
% |
|
|
2.98 |
% |
|
|
2.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
|
9.46 |
% |
|
|
9.11 |
% |
|
|
9.07 |
% |
|
|
9.09 |
% |
|
|
9.02 |
% |
Common Equity Tier 1 Capital Ratio |
|
|
12.15 |
% |
|
|
12.08 |
% |
|
|
11.81 |
% |
|
|
12.03 |
% |
|
|
12.39 |
% |
Tier 1 Risk Based Capital Ratio |
|
|
12.77 |
% |
|
|
12.71 |
% |
|
|
12.43 |
% |
|
|
12.67 |
% |
|
|
12.90 |
% |
Total Risk Based Capital Ratio |
|
|
15.99 |
% |
|
|
15.97 |
% |
|
|
15.66 |
% |
|
|
15.96 |
% |
|
|
16.63 |
% |
Total stockholders' equity to total assets |
|
|
7.92 |
% |
|
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
Tangible common equity to tangible assets* |
|
|
6.68 |
% |
|
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
Dividend payout ratio |
|
|
10.78 |
% |
|
|
8.61 |
% |
|
|
8.58 |
% |
|
|
13.05 |
% |
|
|
9.96 |
% |
Book value per common share |
|
$ |
24.71 |
|
|
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
Tangible book value per common share* |
|
$ |
20.59 |
|
|
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
Tangible book value per diluted common share* |
|
$ |
20.33 |
|
|
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
TABLE 5. YEAR-TO-DATE NET INTEREST INCOME
ANALYSIS (Unaudited) (Dollars in thousands)
|
For the nine
months ended |
|
|
For the nine
months ended |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
Average
Yield/Rate(3)(4) |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
Average
Yield/Rate(3)(4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
579,610 |
|
|
$ |
22,994 |
|
|
|
5.30 |
% |
|
$ |
752,795 |
|
|
$ |
34,609 |
|
|
|
6.15 |
% |
Commercial real estate |
|
1,236,282 |
|
|
|
45,995 |
|
|
|
4.97 |
% |
|
|
990,803 |
|
|
|
34,943 |
|
|
|
4.72 |
% |
Real estate construction |
|
362,543 |
|
|
|
12,443 |
|
|
|
4.59 |
% |
|
|
264,344 |
|
|
|
7,195 |
|
|
|
3.64 |
% |
Residential real estate |
|
604,218 |
|
|
|
16,336 |
|
|
|
3.61 |
% |
|
|
457,761 |
|
|
|
14,167 |
|
|
|
4.14 |
% |
Agricultural real estate |
|
201,566 |
|
|
|
8,046 |
|
|
|
5.34 |
% |
|
|
135,795 |
|
|
|
5,203 |
|
|
|
5.12 |
% |
Agricultural |
|
132,485 |
|
|
|
5,254 |
|
|
|
5.30 |
% |
|
|
93,680 |
|
|
|
3,432 |
|
|
|
4.90 |
% |
Consumer |
|
101,341 |
|
|
|
3,642 |
|
|
|
4.80 |
% |
|
|
84,285 |
|
|
|
2,843 |
|
|
|
4.51 |
% |
Total loans |
|
3,218,045 |
|
|
|
114,710 |
|
|
|
4.77 |
% |
|
|
2,779,463 |
|
|
|
102,392 |
|
|
|
4.93 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,220,045 |
|
|
|
16,767 |
|
|
|
1.84 |
% |
|
|
898,461 |
|
|
|
11,242 |
|
|
|
1.67 |
% |
Nontaxable securities |
|
109,142 |
|
|
|
2,020 |
|
|
|
2.47 |
% |
|
|
100,495 |
|
|
|
2,096 |
|
|
|
2.79 |
% |
Total securities |
|
1,329,187 |
|
|
|
18,787 |
|
|
|
1.89 |
% |
|
|
998,956 |
|
|
|
13,338 |
|
|
|
1.79 |
% |
Federal
funds sold and other |
|
116,997 |
|
|
|
1,327 |
|
|
|
1.52 |
% |
|
|
175,761 |
|
|
|
846 |
|
|
|
0.64 |
% |
Total interest-earning assets |
$ |
4,664,229 |
|
|
|
134,824 |
|
|
|
3.86 |
% |
|
$ |
3,954,180 |
|
|
|
116,576 |
|
|
|
3.94 |
% |
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
savings and money market deposits |
$ |
2,480,113 |
|
|
|
5,461 |
|
|
|
0.29 |
% |
|
$ |
2,076,643 |
|
|
|
2,728 |
|
|
|
0.18 |
% |
Time
deposits |
|
638,692 |
|
|
|
2,847 |
|
|
|
0.60 |
% |
|
|
606,151 |
|
|
|
3,588 |
|
|
|
0.79 |
% |
Total interest-bearing deposits |
|
3,118,805 |
|
|
|
8,308 |
|
|
|
0.36 |
% |
|
|
2,682,794 |
|
|
|
6,316 |
|
|
|
0.31 |
% |
FHLB
advances |
|
54,100 |
|
|
|
594 |
|
|
|
1.47 |
% |
|
|
16,325 |
|
|
|
155 |
|
|
|
1.27 |
% |
Other
borrowings |
|
152,682 |
|
|
|
5,123 |
|
|
|
4.49 |
% |
|
|
131,516 |
|
|
|
4,741 |
|
|
|
4.82 |
% |
Total interest-bearing liabilities |
$ |
3,325,587 |
|
|
|
14,025 |
|
|
|
0.56 |
% |
|
$ |
2,830,635 |
|
|
|
11,212 |
|
|
|
0.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
120,799 |
|
|
|
|
|
|
|
|
$ |
105,364 |
|
|
|
|
Interest
rate spread |
|
|
|
|
|
|
|
3.30 |
% |
|
|
|
|
|
|
|
|
3.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2) |
|
|
|
|
|
|
|
3.46 |
% |
|
|
|
|
|
|
|
|
3.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan
balances include nonaccrual loans. |
|
(2) Net interest
margin is calculated by dividing annualized net interest income by
average interest-earning assets for the period. |
|
(3) Tax exempt income
is not included in the above table on a tax-equivalent basis. |
|
(4) Actual unrounded
values are used to calculate the reported yield or rate disclosed.
Accordingly, recalculations using the amounts in thousands as
disclosed in this report may not produce the same amounts. |
|
TABLE 6. QUARTER-TO-DATE NET INTEREST
INCOME ANALYSIS (Unaudited) (Dollars in thousands)
|
For the
three months ended |
|
|
For the
three months ended |
|
|
September 30, 2022 |
|
|
September 30, 2021 |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
Average
Yield/Rate(3)(4) |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
Average
Yield/Rate(3)(4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
575,149 |
|
|
$ |
7,750 |
|
|
|
5.35 |
% |
|
$ |
630,622 |
|
|
$ |
13,646 |
|
|
|
8.59 |
% |
Commercial real estate |
|
1,307,244 |
|
|
|
18,023 |
|
|
|
5.47 |
% |
|
|
1,009,141 |
|
|
|
12,072 |
|
|
|
4.75 |
% |
Real estate construction |
|
360,579 |
|
|
|
4,847 |
|
|
|
5.33 |
% |
|
|
283,106 |
|
|
|
2,664 |
|
|
|
3.73 |
% |
Residential real estate |
|
582,938 |
|
|
|
5,464 |
|
|
|
3.72 |
% |
|
|
512,135 |
|
|
|
5,073 |
|
|
|
3.93 |
% |
Agricultural real estate |
|
200,534 |
|
|
|
2,740 |
|
|
|
5.42 |
% |
|
|
134,673 |
|
|
|
1,819 |
|
|
|
5.36 |
% |
Agricultural |
|
113,351 |
|
|
|
1,406 |
|
|
|
4.92 |
% |
|
|
91,878 |
|
|
|
1,370 |
|
|
|
5.92 |
% |
Consumer |
|
101,203 |
|
|
|
1,325 |
|
|
|
5.20 |
% |
|
|
86,647 |
|
|
|
937 |
|
|
|
4.29 |
% |
Total loans |
|
3,240,998 |
|
|
|
41,555 |
|
|
|
5.09 |
% |
|
|
2,748,202 |
|
|
|
37,581 |
|
|
|
5.43 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,164,697 |
|
|
|
5,793 |
|
|
|
1.97 |
% |
|
|
966,651 |
|
|
|
3,920 |
|
|
|
1.61 |
% |
Nontaxable securities |
|
107,717 |
|
|
|
687 |
|
|
|
2.53 |
% |
|
|
94,527 |
|
|
|
655 |
|
|
|
2.75 |
% |
Total securities |
|
1,272,414 |
|
|
|
6,480 |
|
|
|
2.02 |
% |
|
|
1,061,178 |
|
|
|
4,575 |
|
|
|
1.71 |
% |
Federal
funds sold and other |
|
89,156 |
|
|
|
513 |
|
|
|
2.29 |
% |
|
|
196,129 |
|
|
|
290 |
|
|
|
0.59 |
% |
Total interest-earning assets |
$ |
4,602,568 |
|
|
|
48,548 |
|
|
|
4.18 |
% |
|
$ |
4,005,509 |
|
|
|
42,446 |
|
|
|
4.20 |
% |
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
savings and money market deposits |
$ |
2,425,824 |
|
|
|
3,118 |
|
|
|
0.51 |
% |
|
$ |
2,082,515 |
|
|
|
862 |
|
|
|
0.16 |
% |
Time
deposits |
|
655,421 |
|
|
|
1,285 |
|
|
|
0.78 |
% |
|
|
619,525 |
|
|
|
1,019 |
|
|
|
0.65 |
% |
Total interest-bearing deposits |
|
3,081,245 |
|
|
|
4,403 |
|
|
|
0.57 |
% |
|
|
2,702,040 |
|
|
|
1,881 |
|
|
|
0.28 |
% |
FHLB
advances |
|
71,415 |
|
|
|
409 |
|
|
|
2.27 |
% |
|
|
1,401 |
|
|
|
10 |
|
|
|
2.78 |
% |
Other
borrowings |
|
150,099 |
|
|
|
1,792 |
|
|
|
4.74 |
% |
|
|
131,180 |
|
|
|
1,580 |
|
|
|
4.78 |
% |
Total interest-bearing liabilities |
$ |
3,302,759 |
|
|
|
6,604 |
|
|
|
0.79 |
% |
|
$ |
2,834,621 |
|
|
|
3,471 |
|
|
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
41,944 |
|
|
|
|
|
|
|
|
$ |
38,975 |
|
|
|
|
Interest
rate spread |
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
3.71 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2) |
|
|
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan
balances include nonaccrual loans. |
|
(2) Net interest
margin is calculated by dividing annualized net interest income by
average interest-earning assets for the period. |
|
(3) Tax exempt income
is not included in the above table on a tax-equivalent basis. |
|
TABLE 7. QUARTER-OVER-QUARTER NET INTEREST
INCOME ANALYSIS (Unaudited) (Dollars in thousands)
|
For the
three months ended |
|
|
For the
three months ended |
|
|
September 30, 2022 |
|
|
June 30, 2022 |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
Average
Yield/Rate(3)(4) |
|
|
AverageOutstandingBalance |
|
|
InterestIncome/Expense |
|
|
Average
Yield/Rate(3)(4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial and industrial |
$ |
575,149 |
|
|
$ |
7,750 |
|
|
|
5.35 |
% |
|
$ |
588,126 |
|
|
$ |
7,483 |
|
|
|
5.10 |
% |
Commercial real estate |
|
1,307,244 |
|
|
|
18,023 |
|
|
|
5.47 |
% |
|
|
1,210,185 |
|
|
|
14,521 |
|
|
|
4.81 |
% |
Real estate construction |
|
360,579 |
|
|
|
4,847 |
|
|
|
5.33 |
% |
|
|
384,317 |
|
|
|
4,297 |
|
|
|
4.48 |
% |
Residential real estate |
|
582,938 |
|
|
|
5,464 |
|
|
|
3.72 |
% |
|
|
597,680 |
|
|
|
5,206 |
|
|
|
3.49 |
% |
Agricultural real estate |
|
200,534 |
|
|
|
2,740 |
|
|
|
5.42 |
% |
|
|
202,038 |
|
|
|
2,643 |
|
|
|
5.25 |
% |
Agricultural |
|
113,351 |
|
|
|
1,406 |
|
|
|
4.92 |
% |
|
|
134,826 |
|
|
|
1,533 |
|
|
|
4.56 |
% |
Consumer |
|
101,203 |
|
|
|
1,325 |
|
|
|
5.20 |
% |
|
|
99,680 |
|
|
|
1,166 |
|
|
|
4.69 |
% |
Total loans |
|
3,240,998 |
|
|
|
41,555 |
|
|
|
5.09 |
% |
|
|
3,216,852 |
|
|
|
36,849 |
|
|
|
4.59 |
% |
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable securities |
|
1,164,697 |
|
|
|
5,793 |
|
|
|
1.97 |
% |
|
|
1,210,828 |
|
|
|
5,584 |
|
|
|
1.85 |
% |
Nontaxable securities |
|
107,717 |
|
|
|
687 |
|
|
|
2.53 |
% |
|
|
108,271 |
|
|
|
678 |
|
|
|
2.51 |
% |
Total securities |
|
1,272,414 |
|
|
|
6,480 |
|
|
|
2.02 |
% |
|
|
1,319,099 |
|
|
|
6,262 |
|
|
|
1.90 |
% |
Federal
funds sold and other |
|
89,156 |
|
|
|
513 |
|
|
|
2.29 |
% |
|
|
140,016 |
|
|
|
513 |
|
|
|
1.47 |
% |
Total interest-earning assets |
$ |
4,602,568 |
|
|
|
48,548 |
|
|
|
4.18 |
% |
|
$ |
4,675,967 |
|
|
|
43,624 |
|
|
|
3.74 |
% |
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand
savings and money market deposits |
$ |
2,425,824 |
|
|
|
3,118 |
|
|
|
0.51 |
% |
|
$ |
2,481,602 |
|
|
|
1,346 |
|
|
|
0.22 |
% |
Time
deposits |
|
655,421 |
|
|
|
1,285 |
|
|
|
0.78 |
% |
|
|
630,698 |
|
|
|
837 |
|
|
|
0.53 |
% |
Total interest-bearing deposits |
|
3,081,245 |
|
|
|
4,403 |
|
|
|
0.57 |
% |
|
|
3,112,300 |
|
|
|
2,183 |
|
|
|
0.28 |
% |
FHLB
advances |
|
71,415 |
|
|
|
409 |
|
|
|
2.27 |
% |
|
|
80,266 |
|
|
|
176 |
|
|
|
0.88 |
% |
Other
borrowings |
|
150,099 |
|
|
|
1,792 |
|
|
|
4.74 |
% |
|
|
157,796 |
|
|
|
1,699 |
|
|
|
4.32 |
% |
Total interest-bearing liabilities |
$ |
3,302,759 |
|
|
|
6,604 |
|
|
|
0.79 |
% |
|
$ |
3,350,362 |
|
|
|
4,058 |
|
|
|
0.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
$ |
41,944 |
|
|
|
|
|
|
|
|
$ |
39,566 |
|
|
|
|
Interest
rate spread |
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
margin (2) |
|
|
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Average loan
balances include nonaccrual loans. |
|
(2) Net interest
margin is calculated by dividing annualized net interest income by
average interest-earning assets for the period. |
|
(3) Tax exempt income
is not included in the above table on a tax-equivalent basis. |
|
TABLE 8. NON-GAAP FINANCIAL
MEASURES (Unaudited) (Dollars in thousands, except per
share data)
|
|
As of and for the three months ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
$ |
395,806 |
|
|
$ |
428,115 |
|
|
$ |
452,015 |
|
|
$ |
500,631 |
|
|
$ |
417,749 |
|
Less:
goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
Less: core
deposit intangibles, net |
|
|
11,598 |
|
|
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
Less:
mortgage servicing rights, net |
|
|
201 |
|
|
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
Less: naming
rights, net |
|
|
1,054 |
|
|
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
Tangible common equity |
|
$ |
329,852 |
|
|
$ |
361,169 |
|
|
$ |
382,393 |
|
|
$ |
429,924 |
|
|
$ |
372,087 |
|
Common
shares outstanding at period end |
|
|
16,017,834 |
|
|
|
16,106,818 |
|
|
|
16,454,966 |
|
|
|
16,760,115 |
|
|
|
14,365,785 |
|
Diluted
common shares outstanding at period end |
|
|
16,225,591 |
|
|
|
16,289,635 |
|
|
|
16,662,779 |
|
|
|
17,050,115 |
|
|
|
14,637,306 |
|
Book value per common share |
|
$ |
24.71 |
|
|
$ |
26.58 |
|
|
$ |
27.47 |
|
|
$ |
29.87 |
|
|
$ |
29.08 |
|
Tangible book value per common share |
|
$ |
20.59 |
|
|
$ |
22.42 |
|
|
$ |
23.24 |
|
|
$ |
25.65 |
|
|
$ |
25.90 |
|
Tangible book value per diluted common share |
|
$ |
20.33 |
|
|
$ |
22.17 |
|
|
$ |
22.95 |
|
|
$ |
25.22 |
|
|
$ |
25.42 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
5,000,415 |
|
|
$ |
5,002,156 |
|
|
$ |
5,078,623 |
|
|
$ |
5,137,631 |
|
|
$ |
4,263,268 |
|
Less:
goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
54,465 |
|
|
|
54,465 |
|
|
|
31,601 |
|
Less: core
deposit intangibles, net |
|
|
11,598 |
|
|
|
12,554 |
|
|
|
13,830 |
|
|
|
14,879 |
|
|
|
12,963 |
|
Less:
mortgage servicing rights, net |
|
|
201 |
|
|
|
226 |
|
|
|
251 |
|
|
|
276 |
|
|
|
— |
|
Less: naming
rights, net |
|
|
1,054 |
|
|
|
1,065 |
|
|
|
1,076 |
|
|
|
1,087 |
|
|
|
1,098 |
|
Tangible assets |
|
$ |
4,934,461 |
|
|
$ |
4,935,210 |
|
|
$ |
5,009,001 |
|
|
$ |
5,066,924 |
|
|
$ |
4,217,606 |
|
Total stockholders' equity to total assets |
|
|
7.92 |
% |
|
|
8.56 |
% |
|
|
8.90 |
% |
|
|
9.74 |
% |
|
|
9.80 |
% |
Tangible common equity to tangible assets |
|
|
6.68 |
% |
|
|
7.32 |
% |
|
|
7.63 |
% |
|
|
8.48 |
% |
|
|
8.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
average stockholders' equity |
|
$ |
436,191 |
|
|
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,046 |
|
|
$ |
422,879 |
|
Less:
average intangible assets |
|
|
66,445 |
|
|
|
68,978 |
|
|
|
70,181 |
|
|
|
61,186 |
|
|
|
46,335 |
|
Average tangible common equity |
|
$ |
369,746 |
|
|
$ |
368,505 |
|
|
$ |
422,418 |
|
|
$ |
501,860 |
|
|
$ |
376,544 |
|
Net income
(loss) allocable to common stockholders |
|
$ |
15,171 |
|
|
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
Add:
amortization of intangible assets |
|
|
992 |
|
|
|
1,148 |
|
|
|
1,085 |
|
|
|
1,116 |
|
|
|
1,040 |
|
Less: tax
effect of intangible assets amortization |
|
|
208 |
|
|
|
241 |
|
|
|
228 |
|
|
|
234 |
|
|
|
218 |
|
Adjusted net income (loss) allocable to common
stockholders |
|
$ |
15,955 |
|
|
$ |
16,166 |
|
|
$ |
16,507 |
|
|
$ |
11,348 |
|
|
$ |
12,595 |
|
Return on total average stockholders' equity
(ROAE) annualized |
|
|
13.80 |
% |
|
|
13.99 |
% |
|
|
12.88 |
% |
|
|
7.37 |
% |
|
|
11.05 |
% |
Return on average tangible common equity
(ROATCE) annualized |
|
|
17.12 |
% |
|
|
17.60 |
% |
|
|
15.85 |
% |
|
|
8.97 |
% |
|
|
13.27 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense |
|
$ |
32,236 |
|
|
$ |
31,436 |
|
|
$ |
29,459 |
|
|
$ |
38,089 |
|
|
$ |
30,689 |
|
Less: loss
on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
$ |
372 |
|
Less: merger
expense |
|
|
115 |
|
|
|
88 |
|
|
|
323 |
|
|
|
4,562 |
|
|
|
4,015 |
|
Adjusted
non-interest expense |
|
$ |
32,121 |
|
|
$ |
31,348 |
|
|
$ |
29,136 |
|
|
$ |
33,527 |
|
|
$ |
26,302 |
|
Net interest
income |
|
$ |
41,944 |
|
|
$ |
39,566 |
|
|
$ |
39,289 |
|
|
$ |
37,215 |
|
|
$ |
38,975 |
|
Non-interest
income |
|
|
8,969 |
|
|
|
9,637 |
|
|
|
9,022 |
|
|
|
9,199 |
|
|
|
7,831 |
|
Less: net
gain on acquisition and branch sales |
|
|
— |
|
|
|
540 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: net
gains (losses) from securities transactions |
|
|
(17 |
) |
|
|
(32 |
) |
|
|
40 |
|
|
|
8 |
|
|
|
381 |
|
Adjusted
non-interest income |
|
$ |
8,986 |
|
|
$ |
9,129 |
|
|
$ |
8,982 |
|
|
$ |
9,191 |
|
|
$ |
7,450 |
|
Net interest income plus adjusted non-interest
income |
|
$ |
50,930 |
|
|
$ |
48,695 |
|
|
$ |
48,271 |
|
|
$ |
46,406 |
|
|
$ |
46,425 |
|
Non-interest expense to net
interest income plus non-interest income |
|
|
63.32 |
% |
|
|
63.89 |
% |
|
|
60.98 |
% |
|
|
82.06 |
% |
|
|
65.57 |
% |
Efficiency ratio |
|
|
63.07 |
% |
|
|
64.38 |
% |
|
|
60.36 |
% |
|
|
72.25 |
% |
|
|
56.65 |
% |
Net income
(loss) allocable to common stockholders |
|
$ |
15,171 |
|
|
$ |
15,259 |
|
|
$ |
15,650 |
|
|
$ |
10,466 |
|
|
$ |
11,773 |
|
Add: income
tax provision |
|
|
3,642 |
|
|
|
1,684 |
|
|
|
3,614 |
|
|
|
(16 |
) |
|
|
3,286 |
|
Add:
provision (reversal) of credit losses |
|
|
(136 |
) |
|
|
824 |
|
|
|
(412 |
) |
|
|
(2,125 |
) |
|
|
1,058 |
|
Pre-tax, pre-provision income |
|
$ |
18,677 |
|
|
$ |
17,767 |
|
|
$ |
18,852 |
|
|
$ |
8,325 |
|
|
$ |
16,117 |
|
Total
average assets |
|
$ |
4,988,755 |
|
|
$ |
5,067,687 |
|
|
$ |
5,108,120 |
|
|
$ |
5,068,301 |
|
|
$ |
4,275,298 |
|
Total
average stockholders' equity |
|
$ |
436,191 |
|
|
$ |
437,483 |
|
|
$ |
492,599 |
|
|
$ |
563,023 |
|
|
$ |
422,879 |
|
Return on average assets (ROAA) annualized |
|
|
1.21 |
% |
|
|
1.21 |
% |
|
|
1.24 |
% |
|
|
0.82 |
% |
|
|
1.09 |
% |
Adjusted return on average assets |
|
|
1.49 |
% |
|
|
1.41 |
% |
|
|
1.50 |
% |
|
|
0.65 |
% |
|
|
1.50 |
% |
Adjusted return on average equity |
|
|
16.99 |
% |
|
|
16.29 |
% |
|
|
15.52 |
% |
|
|
5.87 |
% |
|
|
15.12 |
% |
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