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Equity Bancshares, Inc. Reports Third Quarter Results, Continued Organic Growth

Equity Bancshares, Inc.
Equity Bancshares, Inc.

Company saw 3.5% linked quarter revenue growth led by expanding Net Interest Margin, with a 19.7% reduction in total nonperforming assets

WICHITA, Kan., Oct. 18, 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 $15.2 million and $0.93 earnings per diluted share for the quarter ended September 30, 2022.

"In 2022, our Company has realized meaningful, organic growth while emphasizing return to our stockholders via earnings, share buybacks, and an increasing dividend. Annualized growth within our commercial and commercial real estate loan portfolios of 17.13% is a credit to our sales and operational teams,” said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc. “We have been diligent in enhancing our sales process, expanding our marketing geography, and hiring exceptional operators which has and will continue to drive our Company’s success.”

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“At the end of the quarter, our classified asset ratio is down more than 50% year-to-date and at an all-time low for our Company,” continued Mr. Elliott. “The committed efforts of our sales and credit teams to source and underwrite strong credits while meeting the financing needs of the communities we serve allows our Company to hold true to its mission as a community bank.”

Notable Items:

  • During the third quarter, the Company realized continued loan growth excluding the impact of PPP assets and sold branches bringing annualized loan growth year-to-date to 7.01%.

  • During the quarter, the Company realized linked period Net Interest Margin growth of 23 basis points, and Net Interest Income growth of $2.38 million.

  • The Company continued to emphasize investor returns through repurchase of 126,900 shares during the quarter, at an average price of $32.51, as well as the expansion of our quarterly dividend program to $0.10 per share. Also during the quarter, the Company’s Board authorized the repurchase of up to 1 million shares and the Company received non-objection from the Federal Reserve Bank of Kansas City related to the repurchase plan.

Financial Results for the Quarter Ended September 30, 2022

Net income allocable to common stockholders was $15.2 million, or $0.93 per diluted share, for the three months ended September 30, 2022, as compared to $15.3 million, or $0.94 per diluted share, for the three months ended June 30, 2022. The decrease for the second quarter of 2022 is primarily driven by income taxes as a true-up of rate was experienced in the second quarter that, as expected, did not repeat. Pre-tax income increased $1.9 million as the Company's net interest income benefitted from increasing interest rates.

Net Interest Income

Net interest income was $41.9 million for the three months ended September 30, 2022, as compared to $39.6 million for the three months ended June 30, 2022, an increase of $2.4 million, or 6.1%. The yield on interest-earning assets increased 44 basis points to 4.18% during the quarter ended September 30, 2022, as compared to 3.74% for the quarter ended June 30, 2022. The cost of interest-bearing deposits increased by 29 basis points during the quarter, moving from 0.28% at June 30, 2022 to 0.57% at September 30, 2022.

Provision for Credit Losses

During the three months ended September 30, 2022, there was a net release of $136 thousand compared to a provision to the allowance for credit losses of $824 thousand in the previous quarter. The minimal release of provision for the quarter is the result of having a relatively similar sized loan portfolio and similar realized loss rates; however, the Company continues to estimate the allowance for credit loss with assumptions that anticipate slowing prepayments rates and continued market disruption caused by elevated inflation, supply chain issues and the impact of monetary policy on consumers and businesses. For the three months ended September 30, 2022, we had net charge-offs of $1.6 million as compared to $176 thousand for the three months ended June 30, 2022.

Non-Interest Income

Total non-interest income was $9.0 million for the three months ended September 30, 2022, as compared to $9.6 million for the three months ended June 30, 2022, or a decrease of 6.9%, quarter over quarter. The $600 thousand decrease was primarily due to a decrease in net gain on acquisition and branch sales of $540 thousand.

Non-Interest Expense

Total non-interest expense for the quarter ended September 30, 2022, was $32.2 million as compared to $31.4 million for the quarter ended June 30, 2022. The $800 thousand change was primarily due to an increase in data processing of $496 thousand and an increase in the write-off of tax investments of $423 thousand for the quarter ended September 30, 2022, compared to the quarter ended June 30, 2022.

Asset Quality

As of September 30, 2022, Equity’s allowance for credit losses to total loans decreased to 1.4% as compared to 1.5% at June 30, 2022. Nonperforming assets were $29.7 million as of September, 2022, or 0.6% of total assets, compared to $37.0 million at June 30, 2022, or 0.7% of total assets. Non-accrual loans were $23.1 million at September 30, 2022, as compared to $18.9 million at June 30, 2022. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $63.1 million, or 11.0% of regulatory capital, down from $72.1 million, or 13.1% of regulatory capital as of June 30, 2022.

During the quarter ended September 30, 2022, non-performing assets decreased $7.3 million due to decreases in other repossessed assets of $8.7 million and other real estate owned of $2.5 million, partially offset by increases in non-accrual loans of $4.3 million.

Regulatory Capital

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.1%, the total capital to risk-weighted assets was 16.0% and the total leverage ratio was 9.7% at September 30, 2022. At June 30, 2022, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.1%, the total capital to risk-weighted assets ratio was 16.0% and the total leverage ratio was 9.1%.

The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.1%, a ratio of total capital to risk-weighted assets of 15.4% and a total leverage ratio of 10.5% at September 30, 2022. At June 30, 2022, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.9%, the ratio of total capital to risk-weighted assets was 15.1% and the total leverage ratio was 9.9%.

Non-GAAP Financial Measures

In addition to evaluating the Company’s results of operations in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial condition and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.

The efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. In other words, for every dollar of total revenue recognized, how much of that dollar is expended. To improve the comparability of the ratio to our peers, non-core items are excluded. To improve transparency and acknowledging that banks are not consistent in their definition of the efficiency ratio, we include our calculation of this non-GAAP measure.

Return on average assets before income tax provision and provision for loan losses is a measure that the Company uses to understand fundamental operating performance before these expenses. Used as a ratio relative to average assets, we believe it demonstrates “core” performance and can be viewed as an alternative measure of how efficiently the Company services its asset base. Used as a ratio relative to average equity, it can function as an alternative measure of the Company’s earnings performance in relationship to its equity.

Tangible common equity and related measures are non-GAAP financial measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These financial measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently the Company is deploying its common equity. Companies that are able to demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors.

The Company believes that disclosing these non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included in Table 6 in the following press release tables.

Conference Call and Webcast

Equity’s Chairman and Chief Executive Officer, Brad Elliott, and Chief Financial Officer, Eric Newell, will hold a conference call and webcast to discuss third quarter results on Wednesday, October 19, 2022 at 10 a.m. eastern time or 9 a.m. central time.

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

A replay of the call and webcast will be available two hours following the close of the call until October 26, 2022, accessible at investor.equitybank.com.

About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NASDAQ Global Select Market under the symbol “EQBK.” Learn more at www.equitybank.com.

Special Note Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include COVID-19 related impacts; competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive.

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2022, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties arise from time to time, such as COVID-19, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.

Investor Contact:

Chris Navratil
SVP, Finance
Equity Bancshares, Inc.
(316) 612-6014
cnavratil@equitybank.com

Media Contact:

John J. Hanley
SVP, Senior Director of Marketing
Equity Bancshares, Inc.
(913) 583-8004
jhanley@equitybank.com

Unaudited Financial Tables

  • Table 1. Consolidated Statements of Income

  • Table 2. Quarterly Consolidated Statements of Income

  • Table 3. Consolidated Balance Sheets

  • Table 4. Selected Financial Highlights

  • Table 5. Year-To-Date Net Interest Income Analysis

  • Table 6. Quarter-To-Date Net Interest Income Analysis

  • Table 7. Quarter-Over-Quarter Net Interest Income Analysis

  • Table 8. Non-GAAP Financial Measures


TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

41,555

 

 

$

37,581

 

 

$

114,710

 

 

$

102,392

 

Securities, taxable

 

 

5,792

 

 

 

3,920

 

 

 

16,767

 

 

 

11,242

 

Securities, nontaxable

 

 

687

 

 

 

655

 

 

 

2,020

 

 

 

2,096

 

Federal funds sold and other

 

 

514

 

 

 

290

 

 

 

1,327

 

 

 

846

 

Total interest and dividend income

 

 

48,548

 

 

 

42,446

 

 

 

134,824

 

 

 

116,576

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

4,403

 

 

 

1,881

 

 

 

8,308

 

 

 

6,316

 

Federal funds purchased and retail repurchase agreements

 

 

71

 

 

 

24

 

 

 

150

 

 

 

72

 

Federal Home Loan Bank advances

 

 

409

 

 

 

10

 

 

 

594

 

 

 

155

 

Subordinated debt

 

 

1,721

 

 

 

1,556

 

 

 

4,973

 

 

 

4,669

 

Total interest expense

 

 

6,604

 

 

 

3,471

 

 

 

14,025

 

 

 

11,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

41,944

 

 

 

38,975

 

 

 

120,799

 

 

 

105,364

 

Provision (reversal) for credit losses

 

 

(136

)

 

 

1,058

 

 

 

276

 

 

 

(6,355

)

Net interest income after provision (reversal) for credit losses

 

 

42,080

 

 

 

37,917

 

 

 

120,523

 

 

 

111,719

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,788

 

 

 

2,360

 

 

 

7,927

 

 

 

6,125

 

Debit card income

 

 

2,682

 

 

 

2,574

 

 

 

8,120

 

 

 

7,603

 

Mortgage banking

 

 

310

 

 

 

801

 

 

 

1,300

 

 

 

2,584

 

Increase in value of bank-owned life insurance

 

 

754

 

 

 

1,169

 

 

 

2,355

 

 

 

2,446

 

Net gain on acquisition and branch sales

 

 

 

 

 

 

 

 

540

 

 

 

585

 

Net gains (losses) from securities transactions

 

 

(17

)

 

 

381

 

 

 

(9

)

 

 

398

 

Other

 

 

2,452

 

 

 

546

 

 

 

7,395

 

 

 

3,902

 

Total non-interest income

 

 

8,969

 

 

 

7,831

 

 

 

27,628

 

 

 

23,643

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

15,442

 

 

 

13,588

 

 

 

45,893

 

 

 

39,079

 

Net occupancy and equipment

 

 

3,127

 

 

 

2,475

 

 

 

9,304

 

 

 

7,170

 

Data processing

 

 

4,138

 

 

 

3,257

 

 

 

11,549

 

 

 

9,394

 

Professional fees

 

 

1,265

 

 

 

1,076

 

 

 

3,547

 

 

 

3,148

 

Advertising and business development

 

 

1,191

 

 

 

760

 

 

 

3,139

 

 

 

2,241

 

Telecommunications

 

 

487

 

 

 

439

 

 

 

1,399

 

 

 

1,531

 

FDIC insurance

 

 

340

 

 

 

465

 

 

 

780

 

 

 

1,305

 

Courier and postage

 

 

436

 

 

 

344

 

 

 

1,348

 

 

 

1,040

 

Free nationwide ATM cost

 

 

551

 

 

 

519

 

 

 

1,593

 

 

 

1,504

 

Amortization of core deposit intangibles

 

 

957

 

 

 

1,030

 

 

 

3,118

 

 

 

3,094

 

Loan expense

 

 

174

 

 

 

207

 

 

 

566

 

 

 

626

 

Other real estate owned

 

 

188

 

 

 

(342

)

 

 

201

 

 

 

(805

)

Loss on debt extinguishment

 

 

 

 

 

372

 

 

 

 

 

 

372

 

Merger expenses

 

 

115

 

 

 

4,015

 

 

 

526

 

 

 

4,627

 

Other

 

 

3,825

 

 

 

2,484

 

 

 

10,168

 

 

 

7,050

 

Total non-interest expense

 

 

32,236

 

 

 

30,689

 

 

 

93,131

 

 

 

81,376

 

Income (loss) before income tax

 

 

18,813

 

 

 

15,059

 

 

 

55,020

 

 

 

53,986

 

Provision for income taxes

 

 

3,642

 

 

 

3,286

 

 

 

8,940

 

 

 

11,972

 

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

 

$

15,171

 

 

$

11,773

 

 

$

46,080

 

 

$

42,014

 

Basic earnings (loss) per share

 

$

0.94

 

 

$

0.82

 

 

$

2.83

 

 

$

2.92

 

Diluted earnings (loss) per share

 

$

0.93

 

 

$

0.80

 

 

$

2.79

 

 

$

2.86

 

Weighted average common shares

 

 

16,056,658

 

 

 

14,384,302

 

 

 

16,303,586

 

 

 

14,397,146

 

Weighted average diluted common shares

 

 

16,273,231

 

 

 

14,669,312

 

 

 

16,516,787

 

 

 

14,688,092

 


TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)

 

 

As of and for the three months ended

 

 

 

September 30,
2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

December 31,
2021

 

 

September 30,
2021

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

41,555

 

 

$

36,849

 

 

$

36,306

 

 

$

34,942

 

 

$

37,581

 

Securities, taxable

 

 

5,792

 

 

 

5,584

 

 

 

5,391

 

 

 

4,754

 

 

 

3,920

 

Securities, nontaxable

 

 

687

 

 

 

678

 

 

 

655

 

 

 

747

 

 

 

655

 

Federal funds sold and other

 

 

514

 

 

 

513

 

 

 

300

 

 

 

349

 

 

 

290

 

Total interest and dividend income

 

 

48,548

 

 

 

43,624

 

 

 

42,652

 

 

 

40,792

 

 

 

42,446

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

4,403

 

 

 

2,183

 

 

 

1,722

 

 

 

1,939

 

 

 

1,881

 

Federal funds purchased and retail repurchase agreements

 

 

71

 

 

 

46

 

 

 

33

 

 

 

32

 

 

 

24

 

Federal Home Loan Bank advances

 

 

409

 

 

 

176

 

 

 

9

 

 

 

14

 

 

 

10

 

Subordinated debt

 

 

1,721

 

 

 

1,653

 

 

 

1,599

 

 

 

1,592

 

 

 

1,556

 

Total interest expense

 

 

6,604

 

 

 

4,058

 

 

 

3,363

 

 

 

3,577

 

 

 

3,471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

41,944

 

 

 

39,566

 

 

 

39,289

 

 

 

37,215

 

 

 

38,975

 

Provision (reversal) for credit losses

 

 

(136

)

 

 

824

 

 

 

(412

)

 

 

(2,125

)

 

 

1,058

 

Net interest income after provision (reversal) for credit losses

 

 

42,080

 

 

 

38,742

 

 

 

39,701

 

 

 

39,340

 

 

 

37,917

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges and fees

 

 

2,788

 

 

 

2,617

 

 

 

2,522

 

 

 

2,471

 

 

 

2,360

 

Debit card income

 

 

2,682

 

 

 

2,810

 

 

 

2,628

 

 

 

2,633

 

 

 

2,574

 

Mortgage banking

 

 

310

 

 

 

428

 

 

 

562

 

 

 

722

 

 

 

801

 

Increase in value of bank-owned life insurance

 

 

754

 

 

 

736

 

 

 

865

 

 

 

1,060

 

 

 

1,169

 

Net gain on acquisition and branch sales

 

 

 

 

 

540

 

 

 

 

 

 

 

 

 

 

Net gains (losses) from securities transactions

 

 

(17

)

 

 

(32

)

 

 

40

 

 

 

8

 

 

 

381

 

Other

 

 

2,452

 

 

 

2,538

 

 

 

2,405

 

 

 

2,305

 

 

 

546

 

Total non-interest income

 

 

8,969

 

 

 

9,637

 

 

 

9,022

 

 

 

9,199

 

 

 

7,831

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

15,442

 

 

 

15,383

 

 

 

15,068

 

 

 

15,119

 

 

 

13,588

 

Net occupancy and equipment

 

 

3,127

 

 

 

3,007

 

 

 

3,170

 

 

 

2,967

 

 

 

2,475

 

Data processing

 

 

4,138

 

 

 

3,642

 

 

 

3,769

 

 

 

3,867

 

 

 

3,257

 

Professional fees

 

 

1,265

 

 

 

1,111

 

 

 

1,171

 

 

 

1,565

 

 

 

1,076

 

Advertising and business development

 

 

1,191

 

 

 

972

 

 

 

976

 

 

 

1,129

 

 

 

760

 

Telecommunications

 

 

487

 

 

 

442

 

 

 

470

 

 

 

435

 

 

 

439

 

FDIC insurance

 

 

340

 

 

 

260

 

 

 

180

 

 

 

360

 

 

 

465

 

Courier and postage

 

 

436

 

 

 

489

 

 

 

423

 

 

 

389

 

 

 

344

 

Free nationwide ATM cost

 

 

551

 

 

 

541

 

 

 

501

 

 

 

515

 

 

 

519

 

Amortization of core deposit intangibles

 

 

957

 

 

 

1,111

 

 

 

1,050

 

 

 

1,080

 

 

 

1,030

 

Loan expense

 

 

174

 

 

 

207

 

 

 

185

 

 

 

308

 

 

 

207

 

Other real estate owned

 

 

188

 

 

 

14

 

 

 

(1

)

 

 

617

 

 

 

(342

)

Loss on debt extinguishment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

372

 

Merger expenses

 

 

115

 

 

 

88

 

 

 

323

 

 

 

4,562

 

 

 

4,015

 

Other

 

 

3,825

 

 

 

4,169

 

 

 

2,174

 

 

 

5,176

 

 

 

2,484

 

Total non-interest expense

 

 

32,236

 

 

 

31,436

 

 

 

29,459

 

 

 

38,089

 

 

 

30,689

 

Income (loss) before income tax

 

 

18,813

 

 

 

16,943

 

 

 

19,264

 

 

 

10,450

 

 

 

15,059

 

Provision for income taxes (benefit)

 

 

3,642

 

 

 

1,684

 

 

 

3,614

 

 

 

(16

)

 

 

3,286

 

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

 

$

15,171

 

 

$

15,259

 

 

$

15,650

 

 

$

10,466

 

 

$

11,773

 

Basic earnings (loss) per share

 

$

0.94

 

 

$

0.95

 

 

$

0.94

 

 

$

0.62

 

 

$

0.82

 

Diluted earnings (loss) per share

 

$

0.93

 

 

$

0.94

 

 

$

0.93

 

 

$

0.61

 

 

$

0.80

 

Weighted average common shares

 

 

16,056,658

 

 

 

16,206,978

 

 

 

16,652,556

 

 

 

16,865,167

 

 

 

14,384,302

 

Weighted average diluted common shares

 

 

16,273,231

 

 

 

16,413,248

 

 

 

16,869,152

 

 

 

17,141,174

 

 

 

14,669,312

 


TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)

 

 

September 30,
2022

 

 

June 30,
2022

 

 

March 31,
2022

 

 

December 31,
2021

 

 

September 30,
2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

155,039

 

 

$

103,126

 

 

$

89,764

 

 

$

259,131

 

 

$

141,645

 

Federal funds sold

 

 

374

 

 

 

458

 

 

 

286

 

 

 

823

 

 

 

673

 

Cash and cash equivalents

 

 

155,413

 

 

 

103,584

 

 

 

90,050

 

 

 

259,954

 

 

 

142,318

 

Available-for-sale securities

 

 

1,198,962

 

 

 

1,288,180

 

 

 

1,352,894

 

 

 

1,327,442

 

 

 

1,157,423

 

Loans held for sale

 

 

1,518

 

 

 

1,714

 

 

 

1,575

 

 

 

4,214

 

 

 

4,108

 

Loans, net of allowance for credit losses(1)

 

 

3,208,524

 

 

 

3,175,208

 

 

 

3,194,987

 

 

 

3,107,262

 

 

 

2,633,148

 

Other real estate owned, net

 

 

10,412

 

 

 

12,969

 

 

 

9,897

 

 

 

9,523

 

 

 

10,267

 

Premises and equipment, net

 

 

100,566

 

 

 

101,212

 

 

 

103,168

 

 

 

104,038

 

 

 

90,727

 

Bank-owned life insurance

 

 

122,418

 

 

 

121,665

 

 

 

120,928

 

 

 

120,787

 

 

 

103,431

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

24,428

 

 

 

21,479

 

 

 

19,890

 

 

 

17,510

 

 

 

14,540

 

Interest receivable

 

 

18,497

 

 

 

16,519

 

 

 

16,923

 

 

 

18,048

 

 

 

15,519

 

Goodwill

 

 

53,101

 

 

 

53,101

 

 

 

54,465

 

 

 

54,465

 

 

 

31,601

 

Core deposit intangibles, net

 

 

11,598

 

 

 

12,554

 

 

 

13,830

 

 

 

14,879

 

 

 

12,963

 

Other

 

 

94,978

 

 

 

93,971

 

 

 

100,016

 

 

 

99,509

 

 

 

47,223

 

Total assets

 

$

5,000,415

 

 

$

5,002,156

 

 

$

5,078,623

 

 

$

5,137,631

 

 

$

4,263,268

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand

 

$

1,217,094

 

 

$

1,194,863

 

 

$

1,255,793

 

 

$

1,244,117

 

 

$

984,436

 

Total non-interest-bearing deposits

 

 

1,217,094

 

 

 

1,194,863

 

 

 

1,255,793

 

 

 

1,244,117

 

 

 

984,436

 

Demand, savings and money market

 

 

2,335,847

 

 

 

2,445,545

 

 

 

2,511,478

 

 

 

2,522,289

 

 

 

2,092,849

 

Time

 

 

673,670

 

 

 

651,363

 

 

 

612,399

 

 

 

653,598

 

 

 

585,492

 

Total interest-bearing deposits

 

 

3,009,517

 

 

 

3,096,908

 

 

 

3,123,877

 

 

 

3,175,887

 

 

 

2,678,341

 

Total deposits

 

 

4,226,611

 

 

 

4,291,771

 

 

 

4,379,670

 

 

 

4,420,004

 

 

 

3,662,777

 

Federal funds purchased and retail repurchase agreements

 

 

47,443

 

 

 

52,750

 

 

 

48,199

 

 

 

56,006

 

 

 

39,137

 

Federal Home Loan Bank advances

 

 

186,001

 

 

 

80,000

 

 

 

50,000

 

 

 

 

 

 

 

Subordinated debt

 

 

96,263

 

 

 

96,135

 

 

 

96,010

 

 

 

95,885

 

 

 

88,030

 

Contractual obligations

 

 

15,562

 

 

 

15,813

 

 

 

17,307

 

 

 

17,692

 

 

 

18,771

 

Interest payable and other liabilities

 

 

32,729

 

 

 

37,572

 

 

 

35,422

 

 

 

47,413

 

 

 

36,804

 

Total liabilities

 

 

4,604,609

 

 

 

4,574,041

 

 

 

4,626,608

 

 

 

4,637,000

 

 

 

3,845,519

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

204

 

 

 

204

 

 

 

204

 

 

 

203

 

 

 

178

 

Additional paid-in capital

 

 

482,668

 

 

 

480,897

 

 

 

480,106

 

 

 

478,862

 

 

 

392,321

 

Retained earnings

 

 

130,114

 

 

 

116,576

 

 

 

102,632

 

 

 

88,324

 

 

 

79,226

 

Accumulated other comprehensive income (loss), net of tax

 

 

(120,918

)

 

 

(77,426

)

 

 

(50,012

)

 

 

1,776

 

 

 

9,475

 

Treasury stock

 

 

(96,262

)

 

 

(92,136

)

 

 

(80,915

)

 

 

(68,534

)

 

 

(63,451

)

Total stockholders’ equity

 

 

395,806

 

 

 

428,115

 

 

 

452,015

 

 

 

500,631

 

 

 

417,749

 

Total liabilities and stockholders’ equity

 

$

5,000,415

 

 

$

5,002,156

 

 

$

5,078,623

 

 

$

5,137,631

 

 

$

4,263,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Allowance for credit losses

 

$

46,499

 

 

$

48,238

 

 

$

47,590

 

 

$

48,365

 

 

$

52,763

 


TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except per share data)

 

 

As of and for the three months ended

 

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

 

2022

 

 

2022

 

 

2022

 

 

2021

 

 

2021

 

Loans Held For Investment by Type

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

$

1,655,646

 

 

$

1,643,068

 

 

$

1,552,134

 

 

$

1,486,148

 

 

$

1,308,707

 

Commercial and industrial

 

 

607,722

 

 

 

578,899

 

 

 

629,181

 

 

 

567,497

 

 

 

569,513

 

Residential real estate

 

 

573,431

 

 

 

578,936

 

 

 

613,928

 

 

 

638,087

 

 

 

490,633

 

Agricultural real estate

 

 

200,415

 

 

 

197,938

 

 

 

198,844

 

 

 

198,330

 

 

 

138,793

 

Agricultural

 

 

115,048

 

 

 

124,753

 

 

 

150,077

 

 

 

166,975

 

 

 

93,767

 

Consumer

 

 

102,761

 

 

 

99,852

 

 

 

98,413

 

 

 

98,590

 

 

 

84,498

 

Total loans held-for-investment

 

 

3,255,023

 

 

 

3,223,446

 

 

 

3,242,577

 

 

 

3,155,627

 

 

 

2,685,911

 

Allowance for credit losses

 

 

(46,499

)

 

 

(48,238

)

 

 

(47,590

)

 

 

(48,365

)

 

 

(52,763

)

Net loans held for investment

 

$

3,208,524

 

 

$

3,175,208

 

 

$

3,194,987

 

 

$

3,107,262

 

 

$

2,633,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses on loans to total loans

 

 

1.43

%

 

 

1.50

%

 

 

1.47

%

 

 

1.53

%

 

 

1.96

%

Past due or nonaccrual loans to total loans

 

 

0.94

%

 

 

0.78

%

 

 

0.82

%

 

 

1.18

%

 

 

2.78

%

Nonperforming assets to total assets

 

 

0.59

%

 

 

0.74

%

 

 

0.74

%

 

 

1.28

%

 

 

1.74

%

Nonperforming assets to total loans plus other
real estate owned

 

 

0.91

%

 

 

1.14

%

 

 

1.15

%

 

 

2.07

%

 

 

2.76

%

Classified assets to bank total regulatory capital

 

 

11.03

%

 

 

13.08

%

 

 

17.12

%

 

 

25.34

%

 

 

24.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Data (QTD Average)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

1,272,414

 

 

$

1,319,099

 

 

$

1,397,421

 

 

$

1,330,267

 

 

$

1,061,178

 

Total gross loans receivable

 

 

3,240,998

 

 

 

3,216,853

 

 

 

3,195,787

 

 

 

3,181,279

 

 

 

2,748,202

 

Interest-earning assets

 

 

4,602,568

 

 

 

4,675,967

 

 

 

4,715,389

 

 

 

4,713,817

 

 

 

4,005,509

 

Total assets

 

 

4,988,755

 

 

 

5,067,686

 

 

 

5,108,120

 

 

 

5,068,278

 

 

 

4,275,298

 

Interest-bearing deposits

 

 

3,081,245

 

 

 

3,112,300

 

 

 

3,163,777

 

 

 

3,101,657

 

 

 

2,702,040

 

Borrowings

 

 

221,514

 

 

 

238,062

 

 

 

160,094

 

 

 

165,941

 

 

 

132,581

 

Total interest-bearing liabilities

 

 

3,302,759

 

 

 

3,350,362

 

 

 

3,323,871

 

 

 

3,267,598

 

 

 

2,834,621

 

Total deposits

 

 

4,283,855

 

 

 

4,340,196

 

 

 

4,393,879

 

 

 

4,342,732

 

 

 

3,686,169

 

Total liabilities

 

 

4,552,564

 

 

 

4,630,204

 

 

 

4,615,521

 

 

 

4,505,232

 

 

 

3,852,419

 

Total stockholders' equity

 

 

436,191

 

 

 

437,483

 

 

 

492,599

 

 

 

563,046

 

 

 

422,879

 

Tangible common equity*

 

 

369,746

 

 

 

368,505

 

 

 

422,418

 

 

 

501,860

 

 

 

376,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA) annualized

 

 

1.21

%

 

 

1.21

%

 

 

1.24

%

 

 

0.82

%

 

 

1.09

%

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

 

 

1.49

%

 

 

1.41

%

 

 

1.50

%

 

 

0.65

%

 

 

1.50

%

Return on average equity (ROAE) annualized

 

 

13.80

%

 

 

13.99

%

 

 

12.88

%

 

 

7.37

%

 

 

11.05

%

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

 

 

16.99

%

 

 

16.29

%

 

 

15.52

%

 

 

5.87

%

 

 

15.12

%

Return on average tangible common equity
  (ROATCE) annualized*

 

 

17.12

%

 

 

17.60

%

 

 

15.85

%

 

 

8.97

%

 

 

13.27

%

Yield on loans annualized

 

 

5.09

%