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Equity Bancshares Inc (EQBK) SEC Filing 8-K Material Event for the period ending Wednesday, January 26, 2022

Equity Bancshares Inc

CIK: 1227500 Ticker: EQBK

 

Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE – 1/26/2022

Equity Bancshares, Inc. Results Include Strong Organic Growth

While Expanding Kansas Franchise

 

Company’s fourth quarter includes full quarter results from American State Bank & Trust merger, successful assumption of three branches in the St. Joseph, Missouri market

 

WICHITA, Kansas, January 26, 2022 (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 $10.5 million and $0.61 earnings per diluted share for the quarter ended December 31, 2021.  Equity’s results include a full quarter contribution from American State Bancshares, Inc. as a result of the completion of its acquisition on October 1, 2021, by Equity and an increased average outstanding share count.

 

“As we review 2021, we reached milestones for Equity Bank for our customers, teams, and shareholders,” said Brad Elliott, Chairman and CEO. “We issued the first common stock dividend in our company’s history and we completed and successfully integrated the largest merger in our bank’s history, welcoming American State Bank & Trust teammates into the Equity Bank family. Our teams followed that up with the addition of three branch locations in St. Joseph, Missouri, adding a new market to our Missouri footprint.”

 

Equity customers successfully had $51.3 million of Paycheck Protection Program (“PPP”) loans forgiven during the quarter, resulting in the recognition of fee income totaling $1.7 million in the three-month period ended December 31, 2021.  At December 31, 2021, the total unrecognized fee income associated with PPP loans was $1.3 million.

 

“Equity was founded on entrepreneurial spirit, and that teamwork and collaboration exists in every new initiative we take on as a company, and I’m thankful to our customer service and operational teams for their hard work assisting a diverse range of customers,” said Mr. Elliott. “In 2022, we expect to continue to strengthen our customer delivery options including online and mobile banking, while continuing to offer the personal approach our customers expect from their community bank.”

 

 

Notable Items:

 

 

Diluted earnings per share of $0.61, adjusted to reflect core operating results, was $0.82 per diluted share.  The adjustment to earnings was comprised of the exclusion of merger expenses of $4.6 million.

 

The Company authorized a third stock repurchase program in the third quarter of 2021 totaling 1,000,000 shares.  During the quarter ended December 31, 2021, the Company repurchased 132,873 shares at a weighted average cost of $32.99 per share, totaling $4.4 million from this plan as well as 719 shares from the previous authorization that expired on October 29, 2021.  At the end of the quarter, capacity of 867,127 shares remained under the current repurchase program.  

 

Non-accrual loans declined $35.6 million to $29.4 million for the quarter ended December 31, 2021, as compared to the quarter ended September 30, 2021, representing 0.93% non-accrual loans to total loans at December 31, 2021, the lowest level reported since 2016.


 

Equity Bancshares, Inc.

PRESS RELEASE – 1/26/2022

 

Equity’s Balance Sheet Highlights:

 

 

During the quarter, total loans increased from $2.69 billion to $3.16 billion, of which $400 million is attributed to American State Bank & Trust (“ASBT”) loans and includes a reduction in PPP assets of $51.0 million.  Excluding the impact of ASBT loans and PPP, loan growth linked quarter was $120.7 million or 18.6% annualized.

 

During the quarter total deposits increased to $4.42 billion at December 31, 2021 from $3.66 billion at September 30, 2021. Of the $757.2 million increase in the quarter, $646.5 million is attributed to ASBT deposits.  

 

As excess liquidity continues to impact the operating environment at quarter end, securities and interest-earning cash and cash equivalents comprise 32.5% of average earnings assets, up from 31.4% at the end of the linked quarter and 26.2% at the end of the comparable quarter in the previous year.

 

 

Financial Results for the Quarter Ended December 31, 2021

 

Net income allocable to common stockholders was $10.5 million, or $0.61 per diluted share, for the three months ended December 31, 2021, as compared to $11.8 million, or $0.80 per diluted share, for the three months ended September 30, 2021, a decrease of $1.3 million.  This fourth quarter decrease was attributable to an increase in non-interest expense of $7.4 million and a decrease in net interest income of $1.8 million, partially offset by a decrease in provision for credit losses of $3.2 million, an increase of $1.4 million in non-interest income and a decrease in provision for income taxes of $3.2 million.

 

Net Interest Income

 

Net interest income was $37.2 million for the three months ended December 31, 2021, as compared to $39.0 million for the three months ended September 30, 2021, a decrease of $1.8 million, or 4.6%.  The decrease in net interest income was primarily driven by a decrease in loan fees, due to the forgiveness of PPP assets, of $6.3 million for the quarter ended December 31, 2021, compared to the quarter ended September 30, 2021.  The yield on interest-earning assets decreased 77-basis points to 3.43% during the quarter ended December 31, 2021, as compared to 4.20% for the quarter ended September 30, 2021.  The cost of interest-bearing deposits declined by 3 basis points to 0.25% for the three months ended December 31, 2021, from 0.28% in the previous quarter.

 

Provision for Credit Losses

 

During the three months ended December 31, 2021, there was a net release of $2.1 million in the allowance for credit losses recognized through the provision for credit losses as compared to a provision of $1.1 million in the allowance for credit losses for the three months ended September 30, 2021.  The comparative decrease was primarily driven by a decrease 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 December 31, 2021, we had net charge-offs of $7.9 million as compared to $129 thousand for the three months ended September 30, 2021.

 

Non-Interest Income

 

Total non-interest income was $9.2 million for the three months ended December 31, 2021, as compared to $7.8 million for the three months ended September 30, 2021, or an increase of 17.5% quarter over quarter.  Other non-interest income was $2.3 million, an increase of $1.8 million from the quarter ended September 30, 2021.  The increase 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 third quarter, the Company had identified deterioration of two assets, requiring a reserve and resulting in reduction of income recognition of $771 thousand.  Further, the company had an increase of $511 thousand of income related to derivative transactions in quarter ending December 31, 2021.

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE – 1/26/2022

 

Non-Interest Expense

 

Total non-interest expense for the quarter ended December 31, 2021, was $38.1 million as compared to $30.7 million for the quarter ended September 30, 2021.  The $7.4 million change is primarily attributed to increases of $2.7 million in other expenses, $1.5 million in salaries and employee benefits driven by the increased headcount related to the American State Bank & Trust merger, and $959 thousand in other real estate owned expense. Included in other expenses is the recognition of $1.4 million of partnership expense related to tax credit activity the Company engaged in with assets being placed into service in the quarter ending December 31, 2021, and also resulted in credits recognized in reduced tax expense.

 

Asset Quality

 

As of December 31, 2021, Equity’s allowance for credit losses to total loans was 1.5%, as compared to 2.0% at September 30, 2021.  Nonperforming assets were $66.0 million as of December 31, 2021, or 1.3% of total assets, compared to $74.3 million at September 30, 2021, or 1.7% of total assets.  Non-accrual loans were $29.4 million at December 31, 2021, as compared to $65.0 million at September 30, 2021. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $138.5 million, or 25.4% of regulatory capital, up from $112.4 million, or 24.3% of regulatory capital as of September 30, 2021. This increase is from classified loans acquired in the ASBT merger, most of which are performing.

 

During the quarter, non-performing assets decreased by $8.2 million due to the payoff of a relationship that was previously disclosed in 2019 and contributed to a reversal of allowance for credit losses of $2.7 million.  A separate large credit previously discussed in prior quarters was moved to other repossessed assets and subsequently sold in mid-January. This relationship totaled $18.7 million and led to a reduction of $1.3 million in previously recorded specific reserves.  The Company had a net release of $2.1 million to the allowance for credit losses, comprised of a decrease in specific reserves, primarily driven by resolution of previously identified non-performing assets and continued improved historical loss performance, partially offset by the continued uncertainty of economic conditions driven by the COVID-19 pandemic.

 

Regulatory Capital

 

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.0%, the total capital to risk-weighted assets was 15.9% and the total leverage ratio was 9.0% at December 31, 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 14.1%, a ratio of total capital to risk-weighted assets of 15.3% and a total leverage ratio of 10.1% at December 31, 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 – 1/26/2022

 

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 fourth quarter results on Thursday, January 27, 2022, 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 Thursday, January 27, 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. 8086496.

 

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 February 3, 2022, accessible at (855) 859-2056 with conference ID no. 8086496 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 – 1/26/2022

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 – 1/26/2022

 

TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

 

Three months ended

December 31,

 

 

Year ended

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

34,942

 

 

$

35,383

 

 

$

137,334

 

 

$

134,664

 

Securities, taxable

 

 

4,754

 

 

 

3,408

 

 

 

15,996

 

 

 

15,521

 

Securities, nontaxable

 

 

747

 

 

 

913

 

 

 

2,843

 

 

 

3,682

 

Federal funds sold and other

 

 

349

 

 

 

285

 

 

 

1,195

 

 

 

1,694

 

Total interest and dividend income

 

 

40,792

 

 

 

39,989

 

 

 

157,368

 

 

 

155,561

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,939

 

 

 

2,755

 

 

 

8,255

 

 

 

16,582

 

Federal funds purchased and retail repurchase agreements

 

 

32

 

 

 

25

 

 

 

104

 

 

 

105

 

Federal Home Loan Bank advances

 

 

14

 

 

 

94

 

 

 

169

 

 

 

2,292

 

Federal Reserve Bank discount window

 

 

 

 

 

 

 

 

 

 

 

6

 

Bank stock loan

 

 

 

 

 

 

 

 

 

 

 

415

 

Subordinated debt

 

 

1,592

 

 

 

1,556

 

 

 

6,261

 

 

 

3,509

 

Total interest expense

 

 

3,577

 

 

 

4,430

 

 

 

14,789

 

 

 

22,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

37,215

 

 

 

35,559

 

 

 

142,579

 

 

 

132,652

 

Provision (reversal) for credit losses

 

 

(2,125

)

 

 

1,000

 

 

 

(8,480

)

 

 

24,255

 

Net interest income after provision (reversal) for credit losses

 

 

39,340

 

 

 

34,559

 

 

 

151,059

 

 

 

108,397

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,471

 

 

 

1,759

 

 

 

8,596

 

 

 

6,856

 

Debit card income

 

 

2,633

 

 

 

2,401

 

 

 

10,236

 

 

 

9,136

 

Mortgage banking

 

 

722

 

 

 

855

 

 

 

3,306

 

 

 

3,153

 

Increase in value of bank-owned life insurance

 

 

1,060

 

 

 

489

 

 

 

3,506

 

 

 

1,941

 

Net gain on acquisition

 

 

 

 

 

2,145

 

 

 

585

 

 

 

2,145

 

Net gains (losses) from securities transactions

 

 

8

 

 

 

(1

)

 

 

406

 

 

 

11

 

Other

 

 

2,305

 

 

 

852

 

 

 

6,207

 

 

 

2,781

 

Total non-interest income

 

 

9,199

 

 

 

8,500

 

 

 

32,842

 

 

 

26,023

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

15,119

 

 

 

14,053

 

 

 

54,198

 

 

 

54,129

 

Net occupancy and equipment

 

 

2,967

 

 

 

2,206

 

 

 

10,137

 

 

 

8,784

 

Data processing

 

 

3,867

 

 

 

2,748

 

 

 

13,261

 

 

 

10,991

 

Professional fees

 

 

1,565

 

 

 

1,095

 

 

 

4,713

 

 

 

4,282

 

Advertising and business development

 

 

1,129

 

 

 

801

 

 

 

3,370

 

 

 

2,498

 

Telecommunications

 

 

435

 

 

 

510

 

 

 

1,966

 

 

 

1,873

 

FDIC insurance

 

 

360

 

 

 

797

 

 

 

1,665

 

 

 

2,088

 

Courier and postage

 

 

389

 

 

 

338

 

 

 

1,429

 

 

 

1,441

 

Free nationwide ATM cost

 

 

515

 

 

 

423

 

 

 

2,019

 

 

 

1,609

 

Amortization of core deposit intangibles

 

 

1,080

 

 

 

1,044

 

 

 

4,174

 

 

 

3,850

 

Loan expense

 

 

308

 

 

 

161

 

 

 

934

 

 

 

789

 

Other real estate owned

 

 

617

 

 

 

1,600

 

 

 

(188

)

 

 

2,310

 

Loss on debt extinguishment

 

 

 

 

 

 

 

 

372

 

 

 

 

Merger expenses

 

 

4,562

 

 

 

299

 

 

 

9,189

 

 

 

299

 

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

104,831

 

Other

 

 

5,176

 

 

 

2,385

 

 

 

12,226

 

 

 

9,216

 

Total non-interest expense

 

 

38,089

 

 

 

28,460

 

 

 

119,465

 

 

 

208,990

 

Income (loss) before income tax

 

 

10,450

 

 

 

14,599

 

 

 

64,436

 

 

 

(74,570

)

Provision for income taxes

 

 

(16

)

 

 

2,111

 

 

 

11,956

 

 

 

400

 

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

 

$

10,466

 

 

$

12,488

 

 

$

52,480

 

 

$

(74,970

)

Basic earnings (loss) per share

 

$

0.62

 

 

$

0.85

 

 

$

3.49

 

 

$

(4.97

)

Diluted earnings (loss) per share

 

$

0.61

 

 

$

0.84

 

 

$

3.43

 

 

$

(4.97

)


 

Equity Bancshares, Inc.

PRESS RELEASE – 1/26/2022

Weighted average common shares

 

 

16,865,167

 

 

 

14,760,810

 

 

 

15,019,221

 

 

 

15,098,512

 

Weighted average diluted common shares

 

 

14,669,312

 

 

 

14,934,058

 

 

 

15,306,431

 

 

 

15,098,512

 


 

Equity Bancshares, Inc.

PRESS RELEASE – 1/26/2022

 

TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

 

As of and for the three months ended

 

 

 

December 31,

2021

 

 

September 30,

2021

 

 

June 30,

2021

 

 

March 31,

2021

 

 

December 31,

2020

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

34,942

 

 

$

37,581

 

 

$

33,810

 

 

$

31,001

 

 

$

35,383

 

Securities, taxable

 

 

4,754

 

 

 

3,920

 

 

 

3,523

 

 

 

3,799

 

 

 

3,408

 

Securities, nontaxable

 

 

747

 

 

 

655

 

 

 

717

 

 

 

724

 

 

 

913

 

Federal funds sold and other

 

 

349

 

 

 

290

 

 

 

268

 

 

 

288

 

 

 

285

 

Total interest and dividend income

 

 

40,792

 

 

 

42,446

 

 

 

38,318

 

 

 

35,812

 

 

 

39,989

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

1,939

 

 

 

1,881

 

 

 

2,025

 

 

 

2,410

 

 

 

2,755

 

Federal funds purchased and retail repurchase agreements

 

 

32

 

 

 

24

 

 

 

26

 

 

 

22

 

 

 

25

 

Federal Home Loan Bank advances

 

 

14

 

 

 

10

 

 

 

80

 

 

 

65

 

 

 

94

 

Subordinated debt

 

 

1,592

 

 

 

1,556

 

 

 

1,557

 

 

 

1,556

 

 

 

1,556

 

Total interest expense

 

 

3,577

 

 

 

3,471

 

 

 

3,688

 

 

 

4,053

 

 

 

4,430

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

37,215

 

 

 

38,975

 

 

 

34,630

 

 

 

31,759

 

 

 

35,559

 

Provision (reversal) for credit losses

 

 

(2,125

)

 

 

1,058

 

 

 

(1,657

)

 

 

(5,756

)

 

 

1,000

 

Net interest income after provision (reversal) for credit losses

 

 

39,340

 

 

 

37,917

 

 

 

36,287

 

 

 

37,515

 

 

 

34,559

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,471

 

 

 

2,360

 

 

 

2,169

 

 

 

1,596

 

 

 

1,759

 

Debit card income

 

 

2,633

 

 

 

2,574

 

 

 

2,679

 

 

 

2,350

 

 

 

2,401

 

Mortgage banking

 

 

722

 

 

 

801

 

 

 

848

 

 

 

935

 

 

 

855

 

Increase in value of bank-owned life insurance

 

 

1,060

 

 

 

1,169

 

 

 

676

 

 

 

601

 

 

 

489

 

Net gain on acquisition

 

 

 

 

 

 

 

 

663

 

 

 

(78

)

 

 

2,145

 

Net gains (losses) from securities transactions

 

 

8

 

 

 

381

 

 

 

 

 

 

17

 

 

 

(1

)

Other

 

 

2,305

 

 

 

546

 

 

 

2,065

 

 

 

1,291

 

 

 

852

 

Total non-interest income

 

 

9,199

 

 

 

7,831

 

 

 

9,100

 

 

 

6,712

 

 

 

8,500

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

15,119

 

 

 

13,588

 

 

 

12,769

 

 

 

12,722

 

 

 

14,053

 

Net occupancy and equipment

 

 

2,967

 

 

 

2,475

 

 

 

2,327

 

 

 

2,368

 

 

 

2,206

 

Data processing

 

 

3,867

 

 

 

3,257

 

 

 

3,474

 

 

 

2,663

 

 

 

2,748

 

Professional fees

 

 

1,565

 

 

 

1,076

 

 

 

999

 

 

 

1,073

 

 

 

1,095

 

Advertising and business development

 

 

1,129

 

 

 

760

 

 

 

799

 

 

 

682

 

 

 

801

 

Telecommunications

 

 

435

 

 

 

439

 

 

 

512

 

 

 

580

 

 

 

510

 

FDIC insurance

 

 

360

 

 

 

465

 

 

 

425

 

 

 

415

 

 

 

797

 

Courier and postage

 

 

389

 

 

 

344

 

 

 

327

 

 

 

369

 

 

 

338

 

Free nationwide ATM cost

 

 

515

 

 

 

519

 

 

 

513

 

 

 

472

 

 

 

423

 

Amortization of core deposit intangibles

 

 

1,080

 

 

 

1,030

 

 

 

1,030

 

 

 

1,034

 

 

 

1,044

 

Loan expense

 

 

308

 

 

 

207

 

 

 

181

 

 

 

238

 

 

 

161

 

Other real estate owned

 

 

617

 

 

 

(342

)

 

 

(468

)

 

 

5

 

 

 

1,600

 

Loss on debt extinguishment

 

 

 

 

 

372

 

 

 

 

 

 

 

 

 

 

Merger expenses

 

 

4,562

 

 

 

4,015

 

 

 

460

 

 

 

152

 

 

 

299

 

Other

 

 

5,176

 

 

 

2,484

 

 

 

2,458

 

 

 

2,108

 

 

 

2,385

 

Total non-interest expense

 

 

38,089

 

 

 

30,689

 

 

 

25,806

 

 

 

24,881

 

 

 

28,460

 

Income (loss) before income tax

 

 

10,450

 

 

 

15,059

 

 

 

19,581

 

 

 

19,346

 

 

 

14,599

 

Provision for income taxes (benefit)

 

 

(16

)

 

 

3,286

 

 

 

4,415

 

 

 

4,271

 

 

 

2,111

 

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

 

$

10,466

 

 

$

11,773

 

 

$

15,166

 

 

$

15,075

 

 

$

12,488

 

Basic earnings (loss) per share

 

$

0.62

 

 

$

0.82

 

 

$

1.06

 

 

$

1.04

 

 

$

0.85

 

Diluted earnings (loss) per share

 

$

0.61

 

 

$

0.80

 

 

$

1.03

 

 

$

1.02

 

 

$

0.84

 

Weighted average common shares

 

 

16,865,167

 

 

 

14,384,302

 

 

 

14,356,958

 

 

 

14,464,291

 

 

 

14,760,810

 

Weighted average diluted common shares

 

 

17,141,174

 

 

 

14,669,312

 

 

 

14,674,838

 

 

 

14,734,083

 

 

 

14,934,058

 


 

Equity Bancshares, Inc.

PRESS RELEASE – 1/26/2022

 

TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

 

 

December 31,

2021

 

 

September 30,

2021

 

 

June 30,

2021

 

 

March 31,

2021

 

 

December 31,

2020

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

259,131

 

 

$

141,645

 

 

$

138,869

 

 

$

136,190

 

 

$

280,150

 

Federal funds sold

 

 

823

 

 

 

673

 

 

 

452

 

 

 

498

 

 

 

548

 

Cash and cash equivalents

 

 

259,954

 

 

 

142,318

 

 

 

139,321

 

 

 

136,688

 

 

 

280,698

 

Interest-bearing time deposits in other banks

 

 

 

 

 

 

 

 

 

 

 

249

 

 

 

249

 

Available-for-sale securities

 

 

1,327,442

 

 

 

1,157,423

 

 

 

1,041,613

 

 

 

998,100

 

 

 

871,827

 

Loans held for sale

 

 

4,214

 

 

 

4,108

 

 

 

6,183

 

 

 

8,609

 

 

 

12,394

 

Loans, net of allowance for credit losses(1)

 

 

3,107,262

 

 

 

2,633,148

 

 

 

2,763,227

 

 

 

2,740,215

 

 

 

2,557,987

 

Other real estate owned, net

 

 

9,523

 

 

 

10,267

 

 

 

10,861

 

 

 

10,559

 

 

 

11,733

 

Premises and equipment, net

 

 

104,038

 

 

 

90,727

 

 

 

90,876

 

 

 

90,322

 

 

 

89,412

 

Bank-owned life insurance

 

 

120,787

 

 

 

103,431

 

 

 

103,321

 

 

 

102,645

 

 

 

77,044

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

17,510

 

 

 

14,540

 

 

 

18,454

 

 

 

15,174

 

 

 

16,415

 

Interest receivable

 

 

18,048

 

 

 

15,519

 

 

 

15,064

 

 

 

16,655

 

 

 

15,831

 

Goodwill

 

 

56,609

 

 

 

31,601

 

 

 

31,601

 

 

 

31,601

 

 

 

31,601

 

Core deposit intangibles, net

 

 

14,879

 

 

 

12,963

 

 

 

13,993

 

 

 

15,023

 

 

 

16,057

 

Other

 

 

99,509

 

 

 

47,223

 

 

 

33,702

 

 

 

30,344

 

 

 

32,108

 

Total assets

 

$

5,139,775