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

Equity Bancshares, Inc. Exhibit 99.1

PRESS RELEASE

Equity Bancshares, Inc. Reports Second Quarter Results; Experienced Core Deposit Growth and Increased Net Interest Income

Strong Tangible and Regulatory Capital Ratios; Continued Positive Credit Quality Trends

 

WICHITA, Kansas, July 18, 2023 (GLOBE NEWSWIRE) – Equity Bancshares, Inc. (NYSE: EQBK), (“Equity”, “the Company”, “we,” “us,” “our”), the Wichita-based holding company of Equity Bank, reported net income of $11.5 million and $0.74 earnings per diluted share for the quarter ended June 30, 2023. During the quarter, the Company recognized a $1.3 million loss through a repositioning of $50.6 million of investments into higher-yielding earning assets. When excluding the loss, net income would have been $12.4 million or $0.80 per diluted share.

 

"Our Company's success in attracting and retaining core customers during the quarter is a testament to the emphasis our community leaders place on building strong relationships with customers, providing exceptional customer service, and partnering with the communities we serve," said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc.

 

Mr. Elliott continued, "We are confident that our strong community presence, healthy financial condition, and strong liquidity and capital will continue to drive profitability and make us an attractive partner for mergers and acquisitions in our region."

 

Notable Items:

Total transaction account deposits increased $29.4 million during the quarter or 3.5% linked quarter annualized while the loan-to-deposit ratio remained stable. Non-wholesale deposits increased $46 million during the quarter as brokered deposits declined $102 million.
Net Interest income increased $319 thousand during the second quarter, driven by an increase of $67.7 million in average earnings assets.
Cash and cash equivalents remained elevated, comprising 5.5% of Total Assets as management endeavored to maintain on-balance sheet liquidity.
Repositioned $50.6 million of investment securities into alternative earning investments, realizing a current period loss of $1.3 million during the quarter, while enhancing current and prospective period net interest margin. The Company calculates the earn-back to be less than 12 months.
Equity repurchased $8.2 million of common stock, totaling 349 thousand shares or 2.3% of outstanding shares as of the end of the second quarter.
The ratio of non-performing assets to total assets improved 2 basis points linked quarter to 0.3%, and the ratio of Classified Assets to Bank Regulatory Capital decrased to 7.9% from 10.1%.

 

During the second quarter, Equity announced it has transferred to the New York Stock Exchange (NYSE). The Company's common stock began trading on the NYSE on May 23, 2023. In addition to the transfer to the NYSE, the Company also announced two additions to its executive management team. Rick Sems joined in May as the President of Equity Bank, and Ann Knutson joined in June as the Chief Human Resources Officer.

 

Financial Results for the Quarter Ended June 30, 2023

 

Net income allocable to common stockholders was $11.5 million, or $0.74 per diluted share, for the three months ended June 30, 2023, as compared to $12.3 million, or $0.77 per diluted share, for the three months ended March 31, 2023. The decrease during the quarter was primarily driven by a decrease in non-interest income of $1.7 million and an increase in interest expense of $4.8 million, partially offset by an increase in interest income of $5.1 million.

 

Net Interest Income

 

Net interest income was $39.4 million for the three months ended June 30, 2023, as compared to $39.1 million for the three months ended March 31, 2023, an increase of $319 thousand, or 0.82%. The yield on interest-earning assets

 


 

Equity Bancshares, Inc.

PRESS RELEASE

increased 31 basis points to 5.25%. The cost of interest-bearing deposits increased by 41 basis points during the quarter, moving from 1.73% at March 31, 2023, to 2.14% at June 30, 2023.

The Company maintained an enhanced liquidity position in response to the first quarter market disruption by adding on-balance sheet cash, resulting in a seven basis point adverse impact to net interest margin due to the increase in average earning assets and negligible impact to net interest income.

Average interest-bearing deposits declined slightly during the quarter and the Company continued to experience compositional shift from noninterest-bearing deposits into interest bearing categories. At June 30, 2023, non-interest bearing deposits declined $33.7 million from March 31, 2023 and $215.9 million from June 30, 2022. The majority of the decline over the last 12 months is primarily due to deposits migrating from non-interest bearing to interest-bearing deposit accounts and the continued spending of excess liquidity from pandemic related governmental support programs.

 

Provision for Credit Losses

 

During the three months ended June 30, 2023, there was a provision of $298 thousand compared to a net release of $366 thousand in the previous quarter. The provision for the quarter is the result of slight increases in projected losses over our economic forecast period and realized charge-offs; however, overall we continue to experience positive credit trends. The Company continues to estimate the allowance for credit loss with assumptions that anticipate slower prepayments rates and continued market disruption caused by elevated inflation, supply chain issues and the impact of monetary policy on consumers and businesses. For the three months ended June 30, 2023, we had net charge-offs of $858 thousand as compared to $377 thousand for the three months ended March 31, 2023.

 

Non-Interest Income

 

Total non-interest income was $7.0 million for the three months ended June 30, 2023, as compared to $8.6 million for the three months ended March 31, 2023, or a decrease of 19.2%, quarter-over-quarter. The $1.7 million decrease was primarily due to losses on sales of available-for-sale securities of $1.4 million and a decrease in value of bank owned life insurance of $826 thousand.

 

Non-Interest Expense

 

Total non-interest expense for the quarter ended June 30, 2023, was $33.1 million as compared to $33.2 million for the quarter ended March 31, 2023, a decrease of $99 thousand.

 

Income Tax Expense

At June 30, 2023, the effective tax rate for the quarter was 11.5% as compared 17.0% at March 31, 2023. The year-to-date tax rate is 14.5%. The reduction in rate from the first quarter to the second quarter of 2023 is associated with an increase in tax benefits related to the implementation of tax planning initiatives and associated reductions in state income tax expense when taken as a percentage of pre-tax income. These initiatives were anticipated and incorporated in our forecasted full year estimated effective tax rate at March 31, 2023. The impact of recognizing the year to date cumulative effect of these tax initiatives in the second quarter results in a lower tax rate quarter over quarter.

 

Loans, Total Assets and Funding

Loans held for investment were $3.32 billion at June 30, 2023, decreasing $7.9 million compared to previous quarter. During the quarter, the Company exited its last two remaining shared national credits and some larger loan payoffs were driven by asset sale dispositions by our borrowers. Excluding the impact of PPP loans, balances have increased $105.1 million, or 3.3% year-over-year. Included in the annual growth, is $126.2 million within the commercial and industrial

 


 

Equity Bancshares, Inc.

PRESS RELEASE

and commercial real estate portfolios, or 5.7%. Total assets were $5.09 billion as of June 30, 2023 decreasing $61.8 million or 1.2% from March 31, 2023.

Total deposits were $4.23 billion at June 30, 2023, decreasing $56.0 million from the previous quarter end and decreasing $60.8 million from the same period end in 2022. During the second quarter, the Company reduced its brokered deposits by $102 million; improving the overall mix of the deposit portfolio during the second quarter. Of this balance, non-interest bearing accounts comprise approximately 23.1%. Advances from the FHLB declined $11.2 million to $100 million during the quarter, while borrowings from the Federal Reserve's Bank Term Funding Program remained unchanged from March 31, 2023.

 

Asset Quality

 

As of June 30, 2023, Equity’s allowance for credit losses to total loans remained materially consistent at 1.3% as compared to March 31, 2023. Nonperforming assets were $15.7 million as of June 30, 2023, or 0.3% of total assets, compared to $17.1 million at March 31, 2023, or 0.3% of total assets. Non-accrual loans were $15.0 million at June 30, 2023, as compared to $16.6 million at March 31, 2023. Total classified assets, including loans rated special mention or worse, other real estate owned, excluding previous branch locations, and other repossessed assets were $47.1 million, or 7.9% of regulatory capital, down from $59.9 million, or 10.1% of regulatory capital as of March 31, 2023.

 

Capital

 

During the quarter, the Company realized a decrease in both book and tangible capital but realized increases in book and tangible capital per share. The decrease in book and tangible capital is primarily due to dividends declared, costs incurred to repurchase shares and the fair value mark on the investment portfolio outpacing net income for the quarter.

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.2%, the total capital to risk-weighted assets was 16.0% and the total leverage ratio was 9.5% at June 30, 2023. At March 31, 2023, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.2%, the total capital to risk-weighted assets ratio was 16.0% and the total leverage ratio was 9.6%.

The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.3%, a ratio of total capital to risk-weighted assets of 15.5% and a total leverage ratio of 10.6% at June 30, 2023. At March 31, 2023, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 14.4%, the ratio of total capital to risk-weighted assets was 15.7% and the total leverage ratio was 10.8%.

 

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

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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 first quarter results on Wednesday, July 19, 2023, at 10 a.m. eastern time or 9 a.m. central time.

 

A live webcast of the call will be available on the Company’s website at investor.equitybank.com. To access the call by phone, please go to this registration link, and you will be provided with dial in details. Investors, news media, and other participants are encouraged to dial into the conference call ten minutes ahead of the scheduled start time.

 

A replay of the call and webcast will be available two hours following the close of the call until July 26, 2023, accessible at investor.equitybank.com.

 

About Equity Bancshares, Inc.

Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NYSE National, Inc. 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,” “positioned,” “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

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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, 2023, 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 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

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

 

Three months ended
June 30,

 

 

Six months ended
June 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

52,748

 

 

$

36,849

 

 

$

101,129

 

 

$

73,155

 

Securities, taxable

 

 

5,813

 

 

 

5,584

 

 

 

11,760

 

 

 

10,975

 

Securities, nontaxable

 

 

568

 

 

 

678

 

 

 

1,237

 

 

 

1,333

 

Federal funds sold and other

 

 

2,127

 

 

 

513

 

 

 

3,253

 

 

 

813

 

Total interest and dividend income

 

 

61,256

 

 

 

43,624

 

 

 

117,379

 

 

 

86,276

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

17,204

 

 

 

2,183

 

 

 

31,025

 

 

 

3,905

 

Federal funds purchased and retail repurchase agreements

 

 

192

 

 

 

46

 

 

 

387

 

 

 

79

 

Federal Home Loan Bank advances

 

 

953

 

 

 

176

 

 

 

1,971

 

 

 

185

 

Federal Reserve Bank borrowings

 

 

1,528

 

 

 

 

 

 

1,663

 

 

 

 

Subordinated debt

 

 

1,950

 

 

 

1,653

 

 

 

3,794

 

 

 

3,252

 

Total interest expense

 

 

21,827

 

 

 

4,058

 

 

 

38,840

 

 

 

7,421

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

39,429

 

 

 

39,566

 

 

 

78,539

 

 

 

78,855

 

Provision (reversal) for credit losses

 

 

298

 

 

 

824

 

 

 

(68

)

 

 

412

 

Net interest income after provision (reversal) for credit losses

 

 

39,131

 

 

 

38,742

 

 

 

78,607

 

 

 

78,443

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,653

 

 

 

2,617

 

 

 

5,198

 

 

 

5,139

 

Debit card income

 

 

2,653

 

 

 

2,810

 

 

 

5,207

 

 

 

5,438

 

Mortgage banking

 

 

213

 

 

 

428

 

 

 

301

 

 

 

990

 

Increase in value of bank-owned life insurance

 

 

757

 

 

 

736

 

 

 

2,340

 

 

 

1,601

 

Net gain on acquisition and branch sales

 

 

 

 

 

540

 

 

 

 

 

 

540

 

Net gains (losses) from securities transactions

 

 

(1,322

)

 

 

(32

)

 

 

(1,290

)

 

 

8

 

Other

 

 

1,996

 

 

 

2,538

 

 

 

3,794

 

 

 

4,943

 

Total non-interest income

 

 

6,950

 

 

 

9,637

 

 

 

15,550

 

 

 

18,659

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

15,237

 

 

 

15,383

 

 

 

31,929

 

 

 

30,451

 

Net occupancy and equipment

 

 

2,940

 

 

 

3,007

 

 

 

5,819

 

 

 

6,177

 

Data processing

 

 

4,493

 

 

 

3,642

 

 

 

8,409

 

 

 

7,411

 

Professional fees

 

 

1,645

 

 

 

1,111

 

 

 

3,029

 

 

 

2,282

 

Advertising and business development

 

 

1,249

 

 

 

972

 

 

 

2,408

 

 

 

1,948

 

Telecommunications

 

 

516

 

 

 

442

 

 

 

1,001

 

 

 

912

 

FDIC insurance

 

 

515

 

 

 

260

 

 

 

875

 

 

 

440

 

Courier and postage

 

 

463

 

 

 

489

 

 

 

921

 

 

 

912

 

Free nationwide ATM cost

 

 

524

 

 

 

541

 

 

 

1,049

 

 

 

1,042

 

Amortization of core deposit intangibles

 

 

918

 

 

 

1,111

 

 

 

1,836

 

 

 

2,161

 

Loan expense

 

 

136

 

 

 

207

 

 

 

253

 

 

 

392

 

Other real estate owned

 

 

71

 

 

 

14

 

 

 

190

 

 

 

13

 

Merger expenses

 

 

 

 

 

88

 

 

 

 

 

 

411

 

Other

 

 

4,423

 

 

 

4,169

 

 

 

8,640

 

 

 

6,343

 

Total non-interest expense

 

 

33,130

 

 

 

31,436

 

 

 

66,359

 

 

 

60,895

 

Income (loss) before income tax

 

 

12,951

 

 

 

16,943

 

 

 

27,798

 

 

 

36,207

 

Provision for income taxes

 

 

1,495

 

 

 

1,684

 

 

 

4,019

 

 

 

5,298

 

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

 

$

11,456

 

 

$

15,259

 

 

$

23,779

 

 

$

30,909

 

Basic earnings (loss) per share

 

$

0.74

 

 

$

0.95

 

 

$

1.52

 

 

$

1.88

 

Diluted earnings (loss) per share

 

$

0.74

 

 

$

0.94

 

 

$

1.51

 

 

$

1.86

 

Weighted average common shares

 

 

15,468,378

 

 

 

16,206,978

 

 

 

15,662,515

 

 

 

16,428,535

 

Weighted average diluted common shares

 

 

15,554,255

 

 

 

16,413,248

 

 

 

15,789,061

 

 

 

16,639,970

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

(Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the three months ended

 

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31,
2022

 

 

September 30,
2022

 

 

June 30,
2022

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

52,748

 

 

$

48,381

 

 

$

46,149

 

 

$

41,555

 

 

$

36,849

 

Securities, taxable

 

 

5,813

 

 

 

5,947

 

 

 

5,946

 

 

 

5,792

 

 

 

5,584

 

Securities, nontaxable

 

 

568

 

 

 

669

 

 

 

678

 

 

 

687

 

 

 

678

 

Federal funds sold and other

 

 

2,127

 

 

 

1,126

 

 

 

651

 

 

 

514

 

 

 

513

 

Total interest and dividend income

 

 

61,256

 

 

 

56,123

 

 

 

53,424

 

 

 

48,548

 

 

 

43,624

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

17,204

 

 

 

13,821

 

 

 

8,013

 

 

 

4,403

 

 

 

2,183

 

Federal funds purchased and retail repurchase agreements

 

 

192

 

 

 

195

 

 

 

82

 

 

 

71

 

 

 

46

 

Federal Home Loan Bank advances

 

 

953

 

 

 

1,018

 

 

 

1,500

 

 

 

409

 

 

 

176

 

Federal Reserve Bank borrowings

 

 

1,528

 

 

 

135

 

 

 

 

 

 

 

 

 

 

Subordinated debt

 

 

1,950

 

 

 

1,844

 

 

 

1,798

 

 

 

1,721

 

 

 

1,653

 

Total interest expense

 

 

21,827

 

 

 

17,013

 

 

 

11,393

 

 

 

6,604

 

 

 

4,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

39,429

 

 

 

39,110

 

 

 

42,031

 

 

 

41,944

 

 

 

39,566

 

Provision (reversal) for credit losses

 

 

298

 

 

 

(366

)

 

 

(151

)

 

 

(136

)

 

 

824

 

Net interest income after provision (reversal) for credit losses

 

 

39,131

 

 

 

39,476

 

 

 

42,182

 

 

 

42,080

 

 

 

38,742

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,653

 

 

 

2,545

 

 

 

2,705

 

 

 

2,788

 

 

 

2,617

 

Debit card income

 

 

2,653

 

 

 

2,554

 

 

 

2,557

 

 

 

2,682

 

 

 

2,810

 

Mortgage banking

 

 

213

 

 

 

88

 

 

 

116

 

 

 

310

 

 

 

428

 

Increase in value of bank-owned life insurance

 

 

757

 

 

 

1,583

 

 

 

758

 

 

 

754

 

 

 

736

 

Net gain on acquisition and branch sales

 

 

 

 

 

 

 

 

422

 

 

 

 

 

 

540

 

Net gains (losses) from securities transactions

 

 

(1,322

)

 

 

32

 

 

 

14

 

 

 

(17

)

 

 

(32

)

Other

 

 

1,996

 

 

 

1,798

 

 

 

1,757

 

 

 

2,452

 

 

 

2,538

 

Total non-interest income

 

 

6,950

 

 

 

8,600

 

 

 

8,329

 

 

 

8,969

 

 

 

9,637

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

15,237

 

 

 

16,692

 

 

 

16,113

 

 

 

15,442

 

 

 

15,383

 

Net occupancy and equipment

 

 

2,940

 

 

 

2,879

 

 

 

2,919

 

 

 

3,127

 

 

 

3,007

 

Data processing

 

 

4,493

 

 

 

3,916

 

 

 

4,334

 

 

 

4,138

 

 

 

3,642

 

Professional fees

 

 

1,645

 

 

 

1,384

 

 

 

1,404

 

 

 

1,265

 

 

 

1,111

 

Advertising and business development

 

 

1,249

 

 

 

1,159

 

 

 

1,903

 

 

 

1,191

 

 

 

972

 

Telecommunications

 

 

516

 

 

 

485

 

 

 

517

 

 

 

487

 

 

 

442

 

FDIC insurance

 

 

515

 

 

 

360

 

 

 

360

 

 

 

340

 

 

 

260

 

Courier and postage

 

 

463

 

 

 

458

 

 

 

533

 

 

 

436

 

 

 

489

 

Free nationwide ATM cost

 

 

524

 

 

 

525

 

 

 

510

 

 

 

551

 

 

 

541

 

Amortization of core deposit intangibles

 

 

918

 

 

 

918

 

 

 

924

 

 

 

957

 

 

 

1,111

 

Loan expense

 

 

136

 

 

 

117

 

 

 

262

 

 

 

174

 

 

 

207

 

Other real estate owned

 

 

71

 

 

 

119

 

 

 

388

 

 

 

188

 

 

 

14

 

Merger expenses

 

 

 

 

 

 

 

 

68

 

 

 

115

 

 

 

88

 

Other

 

 

4,423

 

 

 

4,217

 

 

 

5,014

 

 

 

3,825

 

 

 

4,169

 

Total non-interest expense

 

 

33,130

 

 

 

33,229

 

 

 

35,249

 

 

 

32,236

 

 

 

31,436

 

Income (loss) before income tax

 

 

12,951

 

 

 

14,847

 

 

 

15,262

 

 

 

18,813

 

 

 

16,943

 

Provision for income taxes (benefit)

 

 

1,495

 

 

 

2,524

 

 

 

3,654

 

 

 

3,642

 

 

 

1,684

 

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

 

$

11,456

 

 

$

12,323

 

 

$

11,608

 

 

$

15,171

 

 

$

15,259

 

Basic earnings (loss) per share

 

$

0.74

 

 

$

0.78

 

 

$

0.73

 

 

$

0.94

 

 

$

0.95

 

Diluted earnings (loss) per share

 

$

0.74

 

 

$

0.77

 

 

$

0.72

 

 

$

0.93

 

 

$

0.94

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

Weighted average common shares

 

 

15,468,378

 

 

 

15,858,808

 

 

 

15,948,360

 

 

 

16,056,658

 

 

 

16,206,978

 

Weighted average diluted common shares

 

 

15,554,255

 

 

 

16,028,051

 

 

 

16,204,185

 

 

 

16,273,231

 

 

 

16,413,248

 

 

TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

 

 

June 30,
2023

 

 

March 31,
2023

 

 

December 31,
2022

 

 

September 30,
2022

 

 

June 30,
2022

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

262,604

 

 

$

249,982

 

 

$

104,013

 

 

$

155,039

 

 

$

103,126

 

Federal funds sold

 

 

15,495

 

 

 

384

 

 

 

415

 

 

 

374

 

 

 

458

 

Cash and cash equivalents

 

 

278,099

 

 

 

250,366

 

 

 

104,428

 

 

 

155,413

 

 

 

103,584

 

Available-for-sale securities

 

 

1,094,748

 

 

 

1,183,247

 

 

 

1,184,390

 

 

 

1,198,962

 

 

 

1,288,180

 

Held-to-maturity securities

 

 

2,216

 

 

 

1,944

 

 

 

1,948

 

 

 

 

 

 

 

Loans held for sale

 

 

2,456

 

 

 

648

 

 

 

349

 

 

 

1,518

 

 

 

1,714

 

Loans, net of allowance for credit losses(1)

 

 

3,278,126

 

 

 

3,285,515

 

 

 

3,265,701

 

 

 

3,208,524

 

 

 

3,175,208

 

Other real estate owned, net

 

 

4,362

 

 

 

4,171

 

 

 

4,409

 

 

 

10,412

 

 

 

12,969

 

Premises and equipment, net

 

 

106,186

 

 

 

104,789

 

 

 

101,492

 

 

 

100,566

 

 

 

101,212

 

Bank-owned life insurance

 

 

123,451

 

 

 

122,971

 

 

 

123,176

 

 

 

122,418

 

 

 

121,665

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

21,129

 

 

 

33,359

 

 

 

21,695

 

 

 

24,428

 

 

 

21,479

 

Interest receivable

 

 

21,360

 

 

 

20,461

 

 

 

20,630

 

 

 

18,497

 

 

 

16,519

 

Goodwill

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

Core deposit intangibles, net

 

 

8,760

 

 

 

9,678

 

 

 

10,596

 

 

 

11,598

 

 

 

12,554

 

Other

 

 

100,889

 

 

 

86,466

 

 

 

89,736

 

 

 

94,978

 

 

 

93,971

 

Total assets

 

$

5,094,883

 

 

$

5,156,716

 

 

$

4,981,651

 

 

$

5,000,415

 

 

$

5,002,156

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

$

978,968

 

 

$

1,012,671

 

 

$

1,097,899

 

 

$

1,217,094

 

 

$

1,194,863

 

Total non-interest-bearing deposits

 

 

978,968

 

 

 

1,012,671

 

 

 

1,097,899

 

 

 

1,217,094

 

 

 

1,194,863

 

Demand, savings and money market

 

 

2,397,524

 

 

 

2,334,463

 

 

 

2,329,584

 

 

 

2,335,847

 

 

 

2,445,545

 

Time

 

 

854,458

 

 

 

939,799

 

 

 

814,324

 

 

 

673,670

 

 

 

651,363

 

Total interest-bearing deposits

 

 

3,251,982

 

 

 

3,274,262

 

 

 

3,143,908

 

 

 

3,009,517

 

 

 

3,096,908

 

Total deposits

 

 

4,230,950

 

 

 

4,286,933

 

 

 

4,241,807

 

 

 

4,226,611

 

 

 

4,291,771

 

Federal funds purchased and retail repurchase agreements

 

 

44,770

 

 

 

45,098

 

 

 

46,478

 

 

 

47,443

 

 

 

52,750

 

Federal Home Loan Bank advances and Federal Reserve Bank borrowings

 

 

240,000

 

 

 

251,222

 

 

 

138,864

 

 

 

186,001

 

 

 

80,000

 

Subordinated debt

 

 

96,653

 

 

 

96,522

 

 

 

96,392

 

 

 

96,263

 

 

 

96,135

 

Contractual obligations

 

 

29,608

 

 

 

19,372

 

 

 

15,218

 

 

 

15,562

 

 

 

15,813

 

Interest payable and other liabilities

 

 

34,467

 

 

 

32,446

 

 

 

32,834

 

 

 

32,729

 

 

 

37,572

 

Total liabilities

 

 

4,676,448

 

 

 

4,731,593

 

 

 

4,571,593

 

 

 

4,604,609

 

 

 

4,574,041

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

207

 

 

 

206

 

 

 

205

 

 

 

204

 

 

 

204

 

Additional paid-in capital

 

 

487,225

 

 

 

486,658

 

 

 

484,989

 

 

 

482,668

 

 

 

480,897

 

Retained earnings

 

 

160,715

 

 

 

150,810

 

 

 

140,095

 

 

 

130,114

 

 

 

116,576

 

Accumulated other comprehensive income (loss), net of tax

 

 

(110,225

)

 

 

(101,238

)

 

 

(113,511

)

 

 

(120,918

)

 

 

(77,426

)

Treasury stock

 

 

(119,487

)

 

 

(111,313

)

 

 

(101,720

)

 

 

(96,262

)

 

 

(92,136

)

Total stockholders’ equity

 

 

418,435

 

 

 

425,123

 

 

 

410,058

 

 

 

395,806

 

 

 

428,115

 

Total liabilities and stockholders’ equity

 

$

5,094,883

 

 

$

5,156,716

 

 

$

4,981,651

 

 

$

5,000,415

 

 

$

5,002,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Allowance for credit losses

 

$

44,544

 

 

$

45,103

 

 

$

45,847

 

 

$

46,499

 

 

$

48,238

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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,

 

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

Loans Held For Investment by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,764,460

 

 

$

1,746,834

 

 

$

1,721,269

 

 

$

1,655,646

 

 

$

1,643,068

 

Commercial and industrial

 

 

583,664

 

 

 

605,576

 

 

 

594,862

 

 

 

607,722

 

 

 

578,899

 

Residential real estate

 

 

560,389

 

 

 

563,791

 

 

 

570,550

 

 

 

573,431

 

 

 

578,936

 

Agricultural real estate

 

 

202,317

 

 

 

202,274

 

 

 

199,189

 

 

 

200,415

 

 

 

197,938

 

Agricultural

 

 

104,510

 

 

 

106,169

 

 

 

120,003

 

 

 

115,048

 

 

 

124,753

 

Consumer

 

 

107,330

 

 

 

105,974

 

 

 

105,675

 

 

 

102,761

 

 

 

99,852

 

Total loans held-for-investment

 

 

3,322,670

 

 

 

3,330,618

 

 

 

3,311,548

 

 

 

3,255,023

 

 

 

3,223,446

 

Allowance for credit losses

 

 

(44,544

)

 

 

(45,103

)

 

 

(45,847

)

 

 

(46,499

)

 

 

(48,238

)

Net loans held for investment

 

$

3,278,126

 

 

$

3,285,515

 

 

$

3,265,701

 

 

$

3,208,524

 

 

$

3,175,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans

 

 

1.34

%

 

 

1.35

%

 

 

1.38

%

 

 

1.43

%

 

 

1.50

%

Past due or nonaccrual loans to total loans

 

 

0.78

%

 

 

0.66

%

 

 

0.72

%

 

 

0.94

%

 

 

0.78

%

Nonperforming assets to total assets

 

 

0.31

%

 

 

0.33

%

 

 

0.37

%

 

 

0.59

%

 

 

0.74

%

Nonperforming assets to total loans plus other
    real estate owned

 

 

0.47

%

 

 

0.51

%

 

 

0.55

%

 

 

0.91

%

 

 

1.14

%

Classified assets to bank total regulatory capital

 

 

7.94

%

 

 

10.09

%

 

 

9.98

%

 

 

11.03

%

 

 

13.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Data (QTD Average)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

1,155,971

 

 

$

1,185,482

 

 

$

1,184,452

 

 

$

1,272,414

 

 

$

1,319,099

 

Total gross loans receivable

 

 

3,337,497

 

 

 

3,305,681

 

 

 

3,275,284

 

 

 

3,240,998

 

 

 

3,216,853

 

Interest-earning assets

 

 

4,678,744

 

 

 

4,611,019

 

 

 

4,538,177

 

 

 

4,602,568

 

 

 

4,675,967

 

Total assets

 

 

5,064,912

 

 

 

4,994,417

 

 

 

4,930,231

 

 

 

4,988,755

 

 

 

5,067,686

 

Interest-bearing deposits

 

 

3,226,965

 

 

 

3,235,557

 

 

 

3,032,902

 

 

 

3,081,245

 

 

 

3,112,300

 

Borrowings

 

 

385,504

 

 

 

247,932

 

 

 

299,191

 

 

 

221,514

 

 

 

238,062

 

Total interest-bearing liabilities

 

 

3,612,469

 

 

 

3,483,489

 

 

 

3,335,557

 

 

 

3,302,759

 

 

 

3,350,362

 

Total deposits

 

 

4,204,334

 

 

 

4,279,451

 

 

 

4,185,904

 

 

 

4,283,855

 

 

 

4,340,196

 

Total liabilities

 

 

4,640,051

 

 

 

4,573,918

 

 

 

4,531,959

 

 

 

4,552,564

 

 

 

4,630,204

 

Total stockholders' equity

 

 

424,862

 

 

 

420,500

 

 

 

398,270

 

 

 

436,191

 

 

 

437,483

 

Tangible common equity*

 

 

361,409

 

 

 

356,053

 

 

 

332,820

 

 

 

369,746

 

 

 

368,505

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA) annualized

 

 

0.91

%

 

 

1.00

%

 

 

0.93

%

 

 

1.21

%

 

 

1.21

%

Return on average assets before income tax and
   provision for loan losses*

 

 

1.05

%

 

 

1.18

%

 

 

1.22

%

 

 

1.49

%

 

 

1.41

%

Return on average equity (ROAE) annualized

 

 

10.82

%

 

 

11.89

%

 

 

11.57

%

 

 

13.80

%

 

 

13.99

%

Return on average equity before income tax and
   provision for loan losses*

 

 

12.51

%

 

 

13.97

%

 

 

15.05

%

 

 

16.99

%

 

 

16.29

%

Return on average tangible common equity
   (ROATCE) annualized
*

 

 

13.55

%

 

 

14.89

%

 

 

14.74

%

 

 

17.12

%

 

 

17.60

%

Yield on loans annualized

 

 

6.34

%

 

 

5.94

%

 

 

5.59

%

 

 

5.09

%

 

 

4.59

%

Cost of interest-bearing deposits annualized

 

 

2.14

%

 

 

1.73

%

 

 

1.05

%

 

 

0.57

%

 

 

0.28

%

Cost of total deposits annualized

 

 

1.64

%

 

 

1.31

%

 

 

0.76

%

 

 

0.41

%

 

 

0.20

%

Net interest margin annualized

 

 

3.38

%

 

 

3.44

%

 

 

3.67

%

 

 

3.62

%

 

 

3.39

%

Efficiency ratio*

 

 

69.44

%

 

 

70.00

%

 

 

70.47

%

 

 

63.07

%

 

 

64.38

%

Non-interest income / average assets

 

 

0.55

%

 

 

0.74

%

 

 

0.67

%

 

 

0.71

%

 

 

0.76

%

Non-interest expense / average assets

 

 

2.62

%

 

 

2.74

%

 

 

2.84

%

 

 

2.56

%

 

 

2.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

9.54

%

 

 

9.60

%

 

 

9.61

%

 

 

9.46

%

 

 

9.11

%

Common Equity Tier 1 Capital Ratio

 

 

12.23

%

 

 

12.21

%

 

 

12.26

%

 

 

12.15

%

 

 

12.08

%

 


 

Equity Bancshares, Inc.

PRESS RELEASE

Tier 1 Risk Based Capital Ratio

 

 

12.84

%

 

 

12.83

%

 

 

12.88

%

 

 

12.77

%

 

 

12.71

%

Total Risk Based Capital Ratio

 

 

15.96

%

 

 

15.98

%

 

 

16.08

%

 

 

15.99

%

 

 

15.97

%

Total stockholders' equity to total assets

 

 

8.21

%

 

 

8.24

%

 

 

8.23

%

 

 

7.92

%

 

 

8.56

%

Tangible common equity to tangible assets*

 

 

7.06

%

 

 

7.09

%

 

 

7.02

%

 

 

6.68

%

 

 

7.32

%

Dividend payout ratio

 

 

13.53

%

 

 

10.49

%

 

 

14.01

%

 

 

10.78

%

 

 

8.61

%

Book value per common share

 

$

27.18

 

 

$

27.03

 

 

$

25.74

 

 

$

24.71

 

 

$

26.58

 

Tangible book value per common share*

 

$

23.08

 

 

$

22.96

 

 

$

21.67

 

 

$

20.59

 

 

$

22.42

 

Tangible book value per diluted common share*

 

$

22.98

 

 

$

22.83

 

 

$

21.35

 

 

$

20.33

 

 

$

22.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GGAP financial measures, see Table 8. Non-GAAP Financial Measures.

 

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)

(Dollars in thousands)

 

For six months ended

 

 

For six months ended

 

 

June 30, 2023

 

 

June 30, 2022

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average
Yield/Rate
(3)(4)

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average
Yield/Rate
(3)(4)

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

584,081

 

 

$

20,519

 

 

 

7.08

%

 

$

581,880

 

 

$

15,244

 

 

 

5.28

%

Commercial real estate

 

1,324,010

 

 

 

40,987

 

 

 

6.24

%

 

 

1,200,212

 

 

 

27,972

 

 

 

4.70

%

Real estate construction

 

434,793

 

 

 

14,926

 

 

 

6.92

%

 

 

363,542

 

 

 

7,596

 

 

 

4.21

%

Residential real estate

 

568,710

 

 

 

11,848

 

 

 

4.20

%

 

 

615,035

 

 

 

10,872

 

 

 

3.56

%

Agricultural real estate

 

202,742

 

 

 

6,501

 

 

 

6.47

%

 

 

202,091

 

 

 

5,306

 

 

 

5.29

%

Agricultural

 

100,795

 

 

 

3,183

 

 

 

6.37

%

 

 

142,210

 

 

 

3,849

 

 

 

5.46

%

Consumer

 

106,546

 

 

 

3,165

 

 

 

5.99

%

 

 

101,409

 

 

 

2,316

 

 

 

4.60

%

Total loans

 

3,321,677

 

 

 

101,129

 

 

 

6.14

%

 

 

3,206,379

 

 

 

73,155

 

 

 

4.60

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable securities

 

1,076,108

 

 

 

11,760

 

 

 

2.20

%

 

 

1,248,178

 

 

 

10,975

 

 

 

1.77

%

Nontaxable securities

 

94,538

 

 

 

1,237

 

 

 

2.64

%

 

 

109,866

 

 

 

1,333

 

 

 

2.45

%

Total securities

 

1,170,646

 

 

 

12,997

 

 

 

2.24

%

 

 

1,358,044

 

 

 

12,308

 

 

 

1.83

%

Federal funds sold and other

 

152,747

 

 

 

3,253

 

 

 

4.29

%

 

 

131,148

 

 

 

813

 

 

 

1.25

%

Total interest-earning assets

$

4,645,070

 

 

 

117,379

 

 

 

5.10

%

 

$

4,695,571

 

 

 

86,276

 

 

 

3.71

%

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand, savings and money market deposits

$

2,336,791

 

 

 

18,957

 

 

 

1.64

%

 

$

2,507,707

 

 

 

2,342

 

 

 

0.19

%

Time deposits

 

894,446

 

 

 

12,068

 

 

 

2.72

%

 

 

630,189

 

 

 

1,563

 

 

 

0.50

%

Total interest-bearing deposits

 

3,231,237

 

 

 

31,025

 

 

 

1.94

%

 

 

3,137,896

 

 

 

3,905

 

 

 

0.25

%

FHLB advances

 

95,497

 

 

 

1,971

 

 

 

4.16

%

 

 

45,299

 

 

 

185

 

 

 

0.82

%

Other borrowings

 

221,601

 

 

 

5,844

 

 

 

5.32

%

 

 

153,995

 

 

 

3,331

 

 

 

4.36

%

Total interest-bearing liabilities

$

3,548,335

 

 

 

38,840

 

 

 

2.21

%

 

$

3,337,190

 

 

 

7,421

 

 

 

0.45

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

78,539

 

 

 

 

 

 

 

 

$

78,855

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

2.89

%

 

 

 

 

 

 

 

 

3.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

 

 

 

 

 

3.41

%

 

 

 

 

 

 

 

 

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.

 

(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts.

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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, 2023

 

 

June 30, 2022

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average
Yield/Rate
(3)(4)

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average
Yield/Rate
(3)(4)

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

590,634

 

 

$

10,885

 

 

 

7.39

%

 

$

588,126

 

 

$

7,483

 

 

 

5.10

%

Commercial real estate

 

1,303,520

 

 

 

20,875

 

 

 

6.42

%

 

 

1,210,185

 

 

 

14,521

 

 

 

4.81

%

Real estate construction

 

465,231

 

 

 

8,231

 

 

 

7.10

%

 

 

384,317

 

 

 

4,297

 

 

 

4.48

%

Residential real estate

 

567,297

 

 

 

6,048

 

 

 

4.28

%

 

 

597,680

 

 

 

5,206

 

 

 

3.49

%

Agricultural real estate

 

202,584

 

 

 

3,387

 

 

 

6.71

%

 

 

202,038

 

 

 

2,643

 

 

 

5.25

%

Agricultural

 

101,333

 

 

 

1,704

 

 

 

6.74

%

 

 

134,826

 

 

 

1,533

 

 

 

4.56

%

Consumer

 

106,898

 

 

 

1,618

 

 

 

6.07

%

 

 

99,680

 

 

 

1,166

 

 

 

4.69

%

Total loans

 

3,337,497

 

 

 

52,748

 

 

 

6.34

%

 

 

3,216,852

 

 

 

36,849

 

 

 

4.59

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable securities

 

1,068,653

 

 

 

5,813

 

 

 

2.18

%

 

 

1,210,828

 

 

 

5,584

 

 

 

1.85

%

Nontaxable securities

 

87,318

 

 

 

568

 

 

 

2.61

%

 

 

108,271

 

 

 

678

 

 

 

2.51

%

Total securities

 

1,155,971

 

 

 

6,381

 

 

 

2.21

%

 

 

1,319,099

 

 

 

6,262

 

 

 

1.90

%

Federal funds sold and other

 

185,276

 

 

 

2,127

 

 

 

4.61

%

 

 

140,016

 

 

 

513

 

 

 

1.47

%

Total interest-earning assets

$

4,678,744

 

 

 

61,256

 

 

 

5.25

%

 

$

4,675,967

 

 

 

43,624

 

 

 

3.74

%

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand, savings and money market deposits

$

2,323,685

 

 

 

10,503

 

 

 

1.81

%

 

$

2,481,602

 

 

 

1,346

 

 

 

0.22

%

Time deposits

 

903,280

 

 

 

6,701

 

 

 

2.98

%

 

 

630,698

 

 

 

837

 

 

 

0.53

%

Total interest-bearing deposits

 

3,226,965

 

 

 

17,204

 

 

 

2.14

%

 

 

3,112,300

 

 

 

2,183

 

 

 

0.28

%

FHLB advances

 

101,845

 

 

 

952

 

 

 

3.75

%

 

 

80,266

 

 

 

176

 

 

 

0.88

%

Other borrowings

 

283,659

 

 

 

3,671

 

 

 

5.19

%

 

 

157,796

 

 

 

1,699

 

 

 

4.32

%

Total interest-bearing liabilities

$

3,612,469

 

 

 

21,827

 

 

 

2.42

%

 

$

3,350,362

 

 

 

4,058

 

 

 

0.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

39,429

 

 

 

 

 

 

 

 

$

39,566

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

2.83

%

 

 

 

 

 

 

 

 

3.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

 

 

 

 

 

3.38

%

 

 

 

 

 

 

 

 

3.39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average loan balances include nonaccrual loans.

 

(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.

 

(3) Tax exempt income is not included in the above table on a tax-equivalent basis.

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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, 2023

 

 

March 31, 2023

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average
Yield/Rate
(3)(4)

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average
Yield/Rate
(3)(4)

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial

$

590,634

 

 

$

10,885

 

 

 

7.39

%

 

$

577,452

 

 

$

9,634

 

 

 

6.77

%

Commercial real estate

 

1,303,520

 

 

 

20,875

 

 

 

6.42

%

 

 

1,344,727

 

 

 

20,112

 

 

 

6.07

%

Real estate construction

 

465,231

 

 

 

8,231

 

 

 

7.10

%

 

 

404,016

 

 

 

6,695

 

 

 

6.72

%

Residential real estate

 

567,297

 

 

 

6,048

 

 

 

4.28

%

 

 

570,139

 

 

 

5,802

 

 

 

4.13

%

Agricultural real estate

 

202,584

 

 

 

3,387

 

 

 

6.71

%

 

 

202,901

 

 

 

3,114

 

 

 

6.22

%

Agricultural

 

101,333

 

 

 

1,704

 

 

 

6.74

%

 

 

100,251

 

 

 

1,478

 

 

 

5.98

%

Consumer

 

106,898

 

 

 

1,618

 

 

 

6.07

%

 

 

106,195

 

 

 

1,546

 

 

 

5.91

%

Total loans

 

3,337,497

 

 

 

52,748

 

 

 

6.34

%

 

 

3,305,681

 

 

 

48,381

 

 

 

5.94

%

Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable securities

 

1,068,653

 

 

 

5,813

 

 

 

2.18

%

 

 

1,083,645

 

 

 

5,947

 

 

 

2.23

%

Nontaxable securities

 

87,318

 

 

 

568

 

 

 

2.61

%

 

 

101,837

 

 

 

669

 

 

 

2.67

%

Total securities

 

1,155,971

 

 

 

6,381

 

 

 

2.21

%

 

 

1,185,482

 

 

 

6,616

 

 

 

2.26

%

Federal funds sold and other

 

185,276

 

 

 

2,127

 

 

 

4.61

%

 

 

119,856

 

 

 

1,126

 

 

 

3.81

%

Total interest-earning assets

$

4,678,744

 

 

 

61,256

 

 

 

5.25

%

 

$

4,611,019

 

 

 

56,123

 

 

 

4.94

%

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand savings and money market deposits

$

2,323,685

 

 

 

10,503

 

 

 

1.81

%

 

$

2,350,042

 

 

 

8,453

 

 

 

1.46

%

Time deposits

 

903,280

 

 

 

6,701

 

 

 

2.98

%

 

 

885,515

 

 

 

5,368

 

 

 

2.46

%

Total interest-bearing deposits

 

3,226,965

 

 

 

17,204

 

 

 

2.14

%

 

 

3,235,557

 

 

 

13,821

 

 

 

1.73

%

FHLB advances

 

101,845

 

 

 

952

 

 

 

3.75

%

 

 

89,078

 

 

 

1,018

 

 

 

4.64

%

Other borrowings

 

283,659

 

 

 

3,671

 

 

 

5.19

%

 

 

158,854

 

 

 

2,174

 

 

 

5.55

%

Total interest-bearing liabilities

$

3,612,469

 

 

 

21,827

 

 

 

2.42

%

 

$

3,483,489

 

 

 

17,013

 

 

 

1.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

39,429

 

 

 

 

 

 

 

 

$

39,110

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

2.83

%

 

 

 

 

 

 

 

 

2.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

 

 

 

 

 

3.38

%

 

 

 

 

 

 

 

 

3.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average loan balances include nonaccrual loans.

 

(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.

 

(3) Tax exempt income is not included in the above table on a tax-equivalent basis.

 

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

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,

 

 

 

2023

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

$

418,435

 

 

$

425,123

 

 

$

410,058

 

 

$

395,806

 

 

$

428,115

 

Less: goodwill

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

Less: core deposit intangibles, net

 

 

8,760

 

 

 

9,678

 

 

 

10,596

 

 

 

11,598

 

 

 

12,554

 

Less: mortgage servicing rights, net

 

 

126

 

 

 

151

 

 

 

176

 

 

 

201

 

 

 

226

 

Less: naming rights, net

 

 

1,022

 

 

 

1,033

 

 

 

1,044

 

 

 

1,054

 

 

 

1,065

 

Tangible common equity

 

$

355,426

 

 

$

361,160

 

 

$

345,141

 

 

$

329,852

 

 

$

361,169

 

Common shares outstanding at period end

 

 

15,396,739

 

 

 

15,730,257

 

 

 

15,930,112

 

 

 

16,017,834

 

 

 

16,106,818

 

Diluted common shares outstanding at period end

 

 

15,468,319

 

 

 

15,822,536

 

 

 

16,163,253

 

 

 

16,225,591

 

 

 

16,289,635

 

Book value per common share

 

$

27.18

 

 

$

27.03

 

 

$

25.74

 

 

$

24.71

 

 

$

26.58

 

Tangible book value per common share

 

$

23.08

 

 

$

22.96

 

 

$

21.67

 

 

$

20.59

 

 

$

22.42

 

Tangible book value per diluted common share

 

$

22.98

 

 

$

22.83

 

 

$

21.35

 

 

$

20.33

 

 

$

22.17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

5,094,883

 

 

$

5,156,716

 

 

$

4,981,651

 

 

$

5,000,415

 

 

$

5,002,156

 

Less: goodwill

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

 

 

53,101

 

Less: core deposit intangibles, net

 

 

8,760

 

 

 

9,678

 

 

 

10,596

 

 

 

11,598

 

 

 

12,554

 

Less: mortgage servicing rights, net

 

 

126

 

 

 

151

 

 

 

176

 

 

 

201

 

 

 

226

 

Less: naming rights, net

 

 

1,022

 

 

 

1,033

 

 

 

1,044

 

 

 

1,054

 

 

 

1,065

 

Tangible assets

 

$

5,031,874

 

 

$

5,092,753

 

 

$

4,916,734

 

 

$

4,934,461

 

 

$

4,935,210

 

Total stockholders' equity to total assets

 

 

8.21

%

 

 

8.24

%

 

 

8.23

%

 

 

7.92

%

 

 

8.56

%

Tangible common equity to tangible assets

 

 

7.06

%

 

 

7.09

%

 

 

7.02

%

 

 

6.68

%

 

 

7.32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total average stockholders' equity

 

$

424,862

 

 

$

420,500

 

 

$

398,270

 

 

$

436,191

 

 

$

437,483

 

Less: average intangible assets

 

 

63,453

 

 

 

64,447

 

 

 

65,450

 

 

 

66,445

 

 

 

68,978

 

Average tangible common equity

 

$

361,409

 

 

$

356,053

 

 

$

332,820

 

 

$

369,746

 

 

$

368,505

 

Net income (loss) allocable to common stockholders

 

$

11,456

 

 

$

12,323

 

 

$

11,608

 

 

$

15,171

 

 

$

15,259

 

Add: amortization of intangible assets

 

 

954

 

 

 

954

 

 

 

961

 

 

 

992

 

 

 

1,148

 

Less: tax effect of intangible assets amortization

 

 

200

 

 

 

200

 

 

 

202

 

 

 

208

 

 

 

241

 

Adjusted net income (loss) allocable to common
    stockholders

 

$

12,210

 

 

$

13,077

 

 

$

12,367

 

 

$

15,955

 

 

$

16,166

 

Return on total average stockholders' equity
    (ROAE) annualized

 

 

10.82

%

 

 

11.89

%

 

 

11.56

%

 

 

13.80

%

 

 

13.99

%

Return on average tangible common equity
    (ROATCE) annualized

 

 

13.55

%

 

 

14.89

%

 

 

14.74

%

 

 

17.12

%

 

 

17.60

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

33,130

 

 

$

33,229

 

 

$

35,248

 

 

$

32,236

 

 

$

31,436

 

Less: loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: merger expense

 

 

 

 

 

 

 

 

68

 

 

 

115

 

 

 

88

 

Adjusted non-interest expense

 

$

33,130

 

 

$

33,229

 

 

$

35,180

 

 

$

32,121

 

 

$

31,348

 

Net interest income

 

$

39,429

 

 

$

39,110

 

 

$

42,031

 

 

$

41,944

 

 

$

39,566

 

Non-interest income

 

 

6,950

 

 

 

8,600

 

 

 

8,330

 

 

 

8,969

 

 

 

9,637

 

Less: net gain on acquisition and branch sales

 

 

 

 

 

 

 

 

422

 

 

 

 

 

 

540

 

Less: net gains (losses) from securities transactions

 

 

(1,322

)

 

 

32

 

 

 

14

 

 

 

(17

)

 

 

(32

)

Adjusted non-interest income

 

$

8,272

 

 

$

8,568

 

 

$

7,894

 

 

$

8,986

 

 

$

9,129

 

Net interest income plus adjusted non-interest income

 

$

47,701

 

 

$

47,678

 

 

$

49,925

 

 

$

50,930

 

 

$

48,695

 

Non-interest expense to
    net interest income plus non-interest income

 

 

71.43

%

 

 

69.65

%

 

 

69.99

%

 

 

63.32

%

 

 

63.89

%

Efficiency ratio

 

 

69.45

%

 

 

69.69

%

 

 

70.47

%

 

 

63.07

%

 

 

64.38

%

Net income (loss) allocable to common stockholders

 

$

11,456

 

 

$

12,323

 

 

$

11,608

 

 

$

15,171

 

 

$

15,259

 

Add: income tax provision

 

 

1,495

 

 

 

2,524

 

 

 

3,654

 

 

 

3,642

 

 

 

1,684

 

Add: provision (reversal) of credit losses

 

 

298

 

 

 

(366

)

 

 

(151

)

 

 

(136

)

 

 

824

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE

Pre-tax, pre-provision income

 

$

13,249

 

 

$

14,481

 

 

$

15,111

 

 

$

18,677

 

 

$

17,767

 

Total average assets

 

$

5,064,912

 

 

$

4,994,417

 

 

$

4,930,231

 

 

$

4,988,755

 

 

$

5,067,687

 

Total average stockholders' equity

 

$

424,862

 

 

$

420,500

 

 

$

398,270

 

 

$

436,191

 

 

$

437,483

 

Return on average assets (ROAA) annualized

 

 

0.91

%

 

 

1.00

%

 

 

0.93

%

 

 

1.21

%

 

 

1.21

%

Adjusted return on average assets

 

 

1.05

%

 

 

1.18

%

 

 

1.22

%

 

 

1.49

%

 

 

1.41

%

Adjusted return on average equity

 

 

12.51

%

 

 

13.97

%

 

 

15.05

%

 

 

16.99

%

 

 

16.29

%