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Equity Bancshares Inc (EQBK) SEC Filing 8-K Material Event for the period ending Tuesday, October 19, 2021

Equity Bancshares Inc

CIK: 1227500 Ticker: EQBK

 

Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

Equity Bancshares, Inc. Results Include Strong Organic Growth

While Expanding Kansas Franchise

 

Company’s third quarter includes loan growth, exclusive of PPP, accompanying successful integration of largest merger in Company’s history and announcement of the Company’s first common stock dividend

 

WICHITA, Kansas, October 19, 2021 (GLOBE NEWSWIRE) – Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “the Company”, “we”, “us”, “our”), the Wichita-based holding company of Equity Bank, reported net income of $11.8 million and $0.80 earnings per diluted share for the quarter ended September 30, 2021.  Equity’s results occurred as the Company completed its acquisition of American State Bancshares, Inc. on October 1, 2021.

 

“As the founder of Equity Bank, our results this quarter are particularly satisfying, as we celebrate continued loan growth, excellent earnings and our first cash stock dividend while simultaneously closing the largest acquisition in our history.  I am grateful to our loyal employees and stockholders as we continue to grow and improve Equity Bank,” said Brad S. Elliott, Chairman and CEO of Equity.

 

I’m pleased with the growth of the Equity Bank brand and the hard work and collaboration of our team members throughout our regions, including our bank employees, lenders, and operations professionals who placed the customer first and executed with open doors, expertise, and availability,” said Mr. Elliott. “We’ve successfully integrated American State Bank & Trust Company into our platform while continuing to provide momentum, support and expertise to our customers throughout our franchise.”

 

Equity customers successfully had $175.7 million of Paycheck Protection Program (“PPP”) loans forgiven during the quarter, resulting in the recognition of fee income totaling $7.7 million in the three-month period ended September 30, 2021.  At September 30, 2021, the total unrecognized fee income associated with PPP loans was $3.0 million.

 

“Our entrepreneurial culture drives the efficiency of our merger process, assists in building a solid community banking network that is responsive to a diverse customer base and excels at adding core deposits and new households in a changing environment.  Our mission as a community bank is to continue to prioritize local customers, local service, and bankers willing to go above and beyond. As we continue to grow, expand and deliver, our focus will drive value for our shareholders,” said Mr. Elliott.

 

Notable Items:

 

 

Diluted earnings per share of $0.80, adjusted to reflect core operating results, was $0.96 per diluted share.  The adjustments to earnings were comprised of the exclusion of merger expenses of $4.0 million, non-accrual interest income of $1.4 million, bank-owned life insurance death benefit of $486 thousand and additional reserving for repurchase obligations associated with the Company’s Federal Deposit Insurance Corporation (“FDIC”) assisted transaction of $771 thousand.

 

Linked quarter service fee revenue, including deposit services, mortgage banking, trust and wealth and insurance services increased to $6.7 million from $6.4 million, or 3.7%.

 

The Company authorized a second stock repurchase program in the third quarter of 2020 totaling 800,000 shares.  During the quarter ended September 30, 2021, the Company repurchased 57,239 shares at a weighted average cost of $30.64 per share, totaling $1.8 million.  At the end of the quarter, capacity of 123,448 shares remained under the current repurchase program.  The Board authorized the repurchase of up to an additional 1,000,000 shares of Equity’s outstanding common stock, beginning October 29, 2021, and concluding October 28, 2022, subject to non-objection by the Company’s primary regulators.

 

The Company announced and paid its first common stock dividend of $0.08 per share to shareholders of record as of September 30, 2021.


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

 

Equity’s Balance Sheet Highlights:

 

 

During the quarter total loans decreased from $2.82 billion to $2.69 billion, including a reduction in PPP assets of $175.7 million.  Excluding the impact of PPP, organic growth linked quarter was $41.8 million, or 7.1% annualized.

 

Total deposits of $3.66 billion at September 30, 2021, as compared to $3.69 billion at June 30, 2021.  Checking, savings and money market accounts were $3.08 billion at September 30, 2021, relative to $3.03 billion at June 30, 2021.  As compared to December 31, 2020, the Bank has increased non-interest-bearing deposits by $192.8 million, or 24.4%.

 

As excess liquidity continues to impact the operating environment at quarter end, securities and interest-earning cash and cash equivalents comprise 31.4% of average earnings assets, up from 28.0% at the end of the linked quarter and 25.0% at the end of the comparable quarter in the previous year.

 

 

Financial Results for the Quarter Ended September 30, 2021

 

Net income allocable to common stockholders was $11.8 million, or $0.80 per diluted share, for the three months ended September 30, 2021, as compared to $15.2 million, or $1.03 per diluted share, for the three months ended June 30, 2021, a decrease of $3.4 million.  This third quarter decrease was attributable to an increase in non-interest expense of $4.9 million, an increase in provision for credit losses of $2.7 million and a decrease of $1.3 million in non-interest income, partially offset by an increase in net interest income $4.3 million and a decrease in provision for income taxes of $1.1 million.

 

Net Interest Income

 

Net interest income was $39.0 million for the three months ended September 30, 2021, as compared to $34.6 million for the three months ended June 30, 2021, an increase of $4.3 million, or 12.6%.  The increase in net interest income was primarily driven by an increase in loan fees, due to the forgiveness of PPP assets, of $2.0 million for the quarter ended September 30, 2021, compared to the quarter ended June 30, 2021.  The yield on interest-earning assets increased 32-basis points to 4.20% during the quarter ended September 30, 2021, as compared to 3.88% for the quarter ended June 30, 2021.  The cost of interest-bearing deposits declined by 3-basis points to 0.28% for the three months ended September 30, 2021, from 0.31% in the previous quarter.

 

Provision for Credit Losses

 

During the three months ended September 30, 2021, there was a provision of $1.1 million in the allowance for credit losses recognized through the provision for credit losses as compared to a net release of $1.7 million of provision for credit losses for the three months ended June 30, 2021.  The comparative increase was primarily driven by an increase in reserves on specifically assessed assets which was partially offset by improving trends in the Company’s loss experience and moderating economic impacts.  For the three months ended September 30, 2021, we had net charge-offs of $129 thousand as compared to $567 thousand for the three months ended June 30, 2021.

 

Non-Interest Income

 

Total non-interest income was $7.8 million for the three months ended September 30, 2021, as compared to $9.1 million for the three months ended June 30, 2021, or a decline of 14.0% quarter over quarter.  Other non-interest income was $546 thousand, a decrease of $1.5 million, or 73.6%, from the quarter ended June 30, 2021.  The decrease in other non-interest income was primarily due to the accounting for potential repurchase obligations associated with assets previously purchased through a FDIC assisted transaction.  In the second quarter, the Company trued up the guarantee on a number of assets resulting in income recognition of $917 thousand.  In the third quarter, two unrelated assets were identified to have experienced deterioration requiring the recognition of a reserve, resulting in $771 thousand in expense.  The net change in these inputs account for the change in the line item.


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

 

During the quarter, service fee revenue, including deposit services, mortgage banking, trust and wealth management, credit cards and insurance increased to $6.7 million from $6.4 million during the second quarter.  The growth was driven by increasing transaction activity and insurance commissions and fees.

 

Non-Interest Expense

 

Total non-interest expense for the quarter ended September 30, 2021, was $30.7 million as compared to $25.8 million for the quarter ended June 30, 2021.  The $4.9 million change is primarily attributed to increases of $3.6 million in merger expenses, $819 thousand in salaries and employee benefits, driven by a comparative reduction in the deferral of cost associated with loan originations, and $372 thousand loss on debt extinguishment, related to the repayment of fixed-rate term advances with Federal Home Loan Bank that were acquired through a prior merger.

 

Asset Quality

 

As of September 30, 2021, Equity’s allowance for credit losses to total loans was 2.0%, as compared to 1.8% at June 30, 2021.  Nonperforming assets were $74.3 million as of September 30, 2021, or 1.7% of total assets, compared to $66.7 million at June 30, 2021, or 1.6% of total assets.  Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $112.4 million, or 24.3% of regulatory capital, up from $103.5 million, or 23.2% of regulatory capital as of June 30, 2021.

 

During the quarter non-performing assets increased by $7.5 million due to the transition of one significant relationship to non-accrual.  The Company provided $1.1 million to the allowance for credit losses, comprised of an increase in specific reserves, primarily driven by the migration of this asset to non-accrual, partially offset by improving historical loss performance and the continued moderation of economic conditions following the height of the pandemic.

 

Regulatory Capital

 

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.4%, the total capital to risk-weighted assets was 16.6% and the total leverage ratio was 9.0% at September 30, 2021.  At December 31, 2020, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.8%, the total capital to risk-weighted assets ratio was 17.4% and the total leverage ratio was 9.3%.

 

The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.5%, a ratio of total capital to risk-weighted assets of 15.8% and a total leverage ratio of 10.1% at September 30, 2021.  At December 31, 2020, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 14.5%, the ratio of total capital to risk-weighted assets was 15.7% and the total leverage ratio was 10.1%.

 

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 used as a common measure by banks as a comparable metric to understand the Company’s expense structure relative to its 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.

 


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

 

Return on average assets before income tax provision, provision for loan losses and goodwill impairment 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 the “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 8 in the following press release tables.

 

Conference Call and Webcast

 

Equity Chairman and Chief Executive Officer, Brad Elliott, and Executive Vice President and Chief Financial Officer, Eric Newell, will hold a conference call and webcast to discuss the 2021 third quarter results on Wednesday, October 20, 2021, at 10:00 a.m. eastern time, 9:00 a.m. central time.

 

Investors, news media and other participants should register for the call or audio webcast at investor.equitybank.com. On Wednesday, October 20, 2021, participants may also dial into the call toll-free at (844) 534-7311 from anywhere in the U.S. or (574) 990-1419 internationally, using conference ID no. 7698604.

 

Participants are encouraged to dial into the call or access the webcast approximately 10 minutes prior to the start time.  Presentation slides to pair with the call or webcast will be posted one hour prior to the call at investor.equitybank.com.

 

A replay of the call and webcast will be available two hours following the close of the call until October 27, 2021, accessible at (855) 859-2056 with conference ID no. 7698604 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.


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

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, 2021, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, such as COVID-19, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.

 

Investor Contact:

 

Chris 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



 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

 

TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

 

Three months ended

September 30,

 

 

Nine months ended

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

37,581

 

 

$

32,278

 

 

$

102,392

 

 

$

99,281

 

Securities, taxable

 

 

3,920

 

 

 

3,476

 

 

 

11,242

 

 

 

12,113

 

Securities, nontaxable

 

 

655

 

 

 

923

 

 

 

2,096

 

 

 

2,769

 

Federal funds sold and other

 

 

290

 

 

 

405

 

 

 

846

 

 

 

1,409

 

Total interest and dividend income

 

 

42,446

 

 

 

37,082

 

 

 

116,576

 

 

 

115,572

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,881

 

 

 

3,064

 

 

 

6,316

 

 

 

13,827

 

Federal funds purchased and retail repurchase agreements

 

 

24

 

 

 

25

 

 

 

72

 

 

 

80

 

Federal Home Loan Bank advances

 

 

10

 

 

 

471

 

 

 

155

 

 

 

2,198

 

Federal Reserve Bank discount window

 

 

 

 

 

 

 

 

 

 

 

6

 

Bank stock loan

 

 

 

 

 

 

 

 

 

 

 

415

 

Subordinated debt

 

 

1,556

 

 

 

1,415

 

 

 

4,669

 

 

 

1,953

 

Total interest expense

 

 

3,471

 

 

 

4,975

 

 

 

11,212

 

 

 

18,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

38,975

 

 

 

32,107

 

 

 

105,364

 

 

 

97,093

 

Provision (reversal) for credit losses

 

 

1,058

 

 

 

815

 

 

 

(6,355

)

 

 

23,255

 

Net interest income after provision (reversal) for credit losses

 

 

37,917

 

 

 

31,292

 

 

 

111,719

 

 

 

73,838

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,360

 

 

 

1,706

 

 

 

6,125

 

 

 

5,097

 

Debit card income

 

 

2,574

 

 

 

2,491

 

 

 

7,603

 

 

 

6,735

 

Mortgage banking

 

 

801

 

 

 

877

 

 

 

2,584

 

 

 

2,298

 

Increase in value of bank-owned life insurance

 

 

1,169

 

 

 

489

 

 

 

2,446

 

 

 

1,452

 

Net gain on acquisition

 

 

 

 

 

 

 

 

585

 

 

 

 

Net gains (losses) from securities transactions

 

 

381

 

 

 

 

 

398

 

 

 

12

 

Other

 

 

546

 

 

 

922

 

 

 

3,902

 

 

 

1,929

 

Total non-interest income

 

 

7,831

 

 

 

6,485

 

 

 

23,643

 

 

 

17,523

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

13,588

 

 

 

13,877

 

 

 

39,079

 

 

 

40,076

 

Net occupancy and equipment

 

 

2,475

 

 

 

2,224

 

 

 

7,170

 

 

 

6,578

 

Data processing

 

 

3,257

 

 

 

2,817

 

 

 

9,394

 

 

 

8,243

 

Professional fees

 

 

1,076

 

 

 

877

 

 

 

3,148

 

 

 

3,187

 

Advertising and business development

 

 

760

 

 

 

598

 

 

 

2,241

 

 

 

1,697

 

Telecommunications

 

 

439

 

 

 

486

 

 

 

1,531

 

 

 

1,363

 

FDIC insurance

 

 

465

 

 

 

360

 

 

 

1,305

 

 

 

1,291

 

Courier and postage

 

 

344

 

 

 

366

 

 

 

1,040

 

 

 

1,103

 

Free nationwide ATM cost

 

 

519

 

 

 

439

 

 

 

1,504

 

 

 

1,186

 

Amortization of core deposit intangibles

 

 

1,030

 

 

 

1,030

 

 

 

3,094

 

 

 

2,806

 

Loan expense

 

 

207

 

 

 

107

 

 

 

626

 

 

 

628

 

Other real estate owned

 

 

(342

)

 

 

133

 

 

 

(805

)

 

 

710

 

Loss on debt extinguishment

 

 

372

 

 

 

 

 

 

372

 

 

 

 

Merger expenses

 

 

4,015

 

 

 

 

 

 

4,627

 

 

 

 

Goodwill impairment

 

 

 

 

 

104,831

 

 

 

 

 

 

104,831

 

Other

 

 

2,484

 

 

 

2,690

 

 

 

7,050

 

 

 

6,831

 

Total non-interest expense

 

 

30,689

 

 

 

130,835

 

 

 

81,376

 

 

 

180,530

 

Income (loss) before income tax

 

 

15,059

 

 

 

(93,058

)

 

 

53,986

 

 

 

(89,169

)

Provision for income taxes

 

 

3,286

 

 

 

(2,653

)

 

 

11,972

 

 

 

(1,711

)

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

 

$

11,773

 

 

$

(90,405

)

 

$

42,014

 

 

$

(87,458

)

Basic earnings (loss) per share

 

$

0.82

 

 

$

(6.01

)

 

$

2.92

 

 

$

(5.75

)


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

Diluted earnings (loss) per share

 

$

0.80

 

 

$

(6.01

)

 

$

2.86

 

 

$

(5.75

)

Weighted average common shares

 

 

14,384,302

 

 

 

15,040,407

 

 

 

14,397,146

 

 

 

15,211,901

 

Weighted average diluted common shares

 

 

14,669,312

 

 

 

15,040,407

 

 

 

14,688,092

 

 

 

15,211,901

 


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

 

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,

2021

 

 

June 30,

2021

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

37,581

 

 

$

33,810

 

 

$

31,001

 

 

$

35,383

 

 

$

32,278

 

Securities, taxable

 

 

3,920

 

 

 

3,523

 

 

 

3,799

 

 

 

3,408

 

 

 

3,476

 

Securities, nontaxable

 

 

655

 

 

 

717

 

 

 

724

 

 

 

913

 

 

 

923

 

Federal funds sold and other

 

 

290

 

 

 

268

 

 

 

288

 

 

 

285

 

 

 

405

 

Total interest and dividend income

 

 

42,446

 

 

 

38,318

 

 

 

35,812

 

 

 

39,989

 

 

 

37,082

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,881

 

 

 

2,025

 

 

 

2,410

 

 

 

2,755

 

 

 

3,064

 

Federal funds purchased and retail repurchase agreements

 

 

24

 

 

 

26

 

 

 

22

 

 

 

25

 

 

 

25

 

Federal Home Loan Bank advances

 

 

10

 

 

 

80

 

 

 

65

 

 

 

94

 

 

 

471

 

Subordinated debt

 

 

1,556

 

 

 

1,557

 

 

 

1,556

 

 

 

1,556

 

 

 

1,415

 

Total interest expense

 

 

3,471

 

 

 

3,688

 

 

 

4,053

 

 

 

4,430

 

 

 

4,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

38,975

 

 

 

34,630

 

 

 

31,759

 

 

 

35,559

 

 

 

32,107

 

Provision (reversal) for credit losses

 

 

1,058

 

 

 

(1,657

)

 

 

(5,756

)

 

 

1,000

 

 

 

815

 

Net interest income after provision (reversal) for credit losses

 

 

37,917

 

 

 

36,287

 

 

 

37,515

 

 

 

34,559

 

 

 

31,292

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,360

 

 

 

2,169

 

 

 

1,596

 

 

 

1,759

 

 

 

1,706

 

Debit card income

 

 

2,574

 

 

 

2,679

 

 

 

2,350

 

 

 

2,401

 

 

 

2,491

 

Mortgage banking

 

 

801

 

 

 

848

 

 

 

935

 

 

 

855

 

 

 

877

 

Increase in value of bank-owned life insurance

 

 

1,169

 

 

 

676

 

 

 

601

 

 

 

489

 

 

 

489

 

Net gain on acquisition

 

 

 

 

 

663

 

 

 

(78

)

 

 

2,145

 

 

 

 

Net gains (losses) from securities transactions

 

 

381

 

 

 

 

 

 

17

 

 

 

(1

)

 

 

 

Other

 

 

546

 

 

 

2,065

 

 

 

1,291

 

 

 

852

 

 

 

922

 

Total non-interest income

 

 

7,831

 

 

 

9,100

 

 

 

6,712

 

 

 

8,500

 

 

 

6,485

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

13,588

 

 

 

12,769

 

 

 

12,722

 

 

 

14,053

 

 

 

13,877

 

Net occupancy and equipment

 

 

2,475

 

 

 

2,327

 

 

 

2,368

 

 

 

2,206

 

 

 

2,224

 

Data processing

 

 

3,257

 

 

 

3,474

 

 

 

2,663

 

 

 

2,748

 

 

 

2,817

 

Professional fees

 

 

1,076

 

 

 

999

 

 

 

1,073

 

 

 

1,095

 

 

 

877

 

Advertising and business development

 

 

760

 

 

 

799

 

 

 

682

 

 

 

801

 

 

 

598

 

Telecommunications

 

 

439

 

 

 

512

 

 

 

580

 

 

 

510

 

 

 

486

 

FDIC insurance

 

 

465

 

 

 

425

 

 

 

415

 

 

 

797

 

 

 

360

 

Courier and postage

 

 

344

 

 

 

327

 

 

 

369

 

 

 

338

 

 

 

366

 

Free nationwide ATM cost

 

 

519

 

 

 

513

 

 

 

472

 

 

 

423

 

 

 

439

 

Amortization of core deposit intangibles

 

 

1,030

 

 

 

1,030

 

 

 

1,034

 

 

 

1,044

 

 

 

1,030

 

Loan expense

 

 

207

 

 

 

181

 

 

 

238

 

 

 

161

 

 

 

107

 

Other real estate owned

 

 

(342

)

 

 

(468

)

 

 

5

 

 

 

1,600

 

 

 

133

 

Loss on debt extinguishment

 

 

372

 

 

 

 

 

 

 

 

 

 

 

 

 

Merger expenses

 

 

4,015

 

 

 

460

 

 

 

152

 

 

 

299

 

 

 

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

104,831

 

Other

 

 

2,484

 

 

 

2,458

 

 

 

2,108

 

 

 

2,385

 

 

 

2,690

 

Total non-interest expense

 

 

30,689

 

 

 

25,806

 

 

 

24,881

 

 

 

28,460

 

 

 

130,835

 

Income (loss) before income tax

 

 

15,059

 

 

 

19,581

 

 

 

19,346

 

 

 

14,599

 

 

 

(93,058

)

Provision for income taxes (benefit)

 

 

3,286

 

 

 

4,415

 

 

 

4,271

 

 

 

2,111

 

 

 

(2,653

)

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

 

$

11,773

 

 

$

15,166

 

 

$

15,075

 

 

$

12,488

 

 

$

(90,405

)

Basic earnings (loss) per share

 

$

0.82

 

 

$

1.06

 

 

$

1.04

 

 

$

0.85

 

 

$

(6.01

)

Diluted earnings (loss) per share

 

$

0.80

 

 

$

1.03

 

 

$

1.02

 

 

$

0.84

 

 

$

(6.01

)


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

Weighted average common shares

 

 

14,384,302

 

 

 

14,356,958

 

 

 

14,464,291

 

 

 

14,760,810

 

 

 

15,040,407

 

Weighted average diluted common shares

 

 

14,669,312

 

 

 

14,674,838

 

 

 

14,734,083

 

 

 

14,934,058

 

 

 

15,040,407

 


 

Equity Bancshares, Inc.

PRESS RELEASE - 10/19/2021

 

TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

 

 

September 30,

2021

 

 

June 30,

2021

 

 

March 31,

2021

 

 

December 31,

2020

 

 

September 30,

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

141,645

 

 

$

138,869

 

 

$

136,190

 

 

$

280,150

 

 

$

65,534

 

Federal funds sold

 

 

673

 

 

 

452

 

 

 

498

 

 

 

548

 

 

 

305

 

Cash and cash equivalents

 

 

142,318

 

 

 

139,321

 

 

 

136,688

 

 

 

280,698

 

 

 

65,839

 

Interest-bearing time deposits in other banks

 

 

 

 

 

 

 

 

249

 

 

 

249

 

 

 

499

 

Available-for-sale securities

 

 

1,157,423

 

 

 

1,041,613

 

 

 

998,100

 

 

 

871,827

 

 

 

798,576

 

Loans held for sale

 

 

4,108

 

 

 

6,183

 

 

 

8,609

 

 

 

12,394

 

 

 

9,053

 

Loans, net of allowance for credit losses(1)

 

 

2,633,148

 

 

 

2,763,227

 

 

 

2,740,215

 

 

 

2,557,987

 

 

 

2,691,626

 

Other real estate owned, net

 

 

10,267

 

 

 

10,861

 

 

 

10,559

 

 

 

11,733

 

 

 

8,727

 

Premises and equipment, net

 

 

90,727

 

 

 

90,876

 

 

 

90,322

 

 

 

89,412

 

 

 

86,087

 

Bank-owned life insurance

 

 

103,431

 

 

 

103,321

 

 

 

102,645

 

 

 

77,044

 

 

 

76,555

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

14,540

 

 

 

18,454

 

 

 

15,174

 

 

 

16,415

 

 

 

32,545

 

Interest receivable

 

 

15,519

 

 

 

15,064

 

 

 

16,655

 

 

 

15,831

 

 

 

18,110

 

Goodwill

 

 

31,601

 

 

 

31,601

 

 

 

31,601

 

 

 

31,601

 

 

 

31,601

 

Core deposit intangibles, net

 

 

12,963

 

 

 

13,993

 

 

 

15,023

 

 

 

16,057

 

 

 

17,101

 

Other