Equity Bancshares, Inc. Second Quarter Results Highlighted by Record Net Interest Income and Net Interest Margin Expansion
Equity Bancshares, Inc. (NYSE: EQBK) reported net income of $11.7 million or $0.76 earnings per diluted share for Q2 2024. Adjusted net income was $15.3 million or $0.99 per diluted share, excluding merger and BOLI repositioning costs. Key highlights:
- Record net interest income of $46.5 million
- Net interest margin expanded to 3.94% from 3.75% in Q1
- Total deposits were $4.3 billion, with 22.7% in non-interest-bearing accounts
- Allowance for credit losses at 1.3% of total loans
- Common equity tier 1 capital ratio at 11.1%
The company completed the integration of Rockhold Bancshares and announced the merger with KansasLand Bancshares. It also repurchased 152,982 shares at an average cost of $33.35.
- Record net interest income of $46.5 million for Q2 2024
- Net interest margin expanded to 3.94% from 3.75% in Q1 2024
- Adjusted earnings per diluted share of $0.99, excluding merger and BOLI costs
- Successful integration of Rockhold Bancshares merger
- Announcement and closing of merger with KansasLand Bancshares
- Active share repurchase program with 152,982 shares bought at $33.35 average cost
- Non-performing assets remained historically low at 0.5% of total assets
- Net charge-offs increased to $1.2 million compared to $667,000 in the previous quarter
- Total deposits decreased by $29.6 million from the previous quarter
- Classified assets increased to 8.47% of regulatory capital, up from 6.9% in Q1 2024
- Non-accrual loans increased to $26.6 million from $24.2 million in Q1 2024
Equity Bancshares has demonstrated notable financial performance in the second quarter, particularly with its record net interest income and an improved net interest margin (NIM) of 3.94%. The increase in net interest income to
The company's strategic acquisition of KansasLand Bancshares, Inc., finalized on July 1, is expected to further strengthen its footprint in Kansas. Mergers and acquisitions (M&A) typically come with integration risks and costs, as seen with the
The bank's proactive share repurchase plan, with 152,982 shares bought at an average cost of
Despite positive earnings adjustments, it is essential to note the slight increase in non-performing assets and classified assets, which rose from
Overall, Equity Bancshares' quarterly performance is solid yet requires vigilance regarding asset quality and successful integration of recent acquisitions.
The announced merger with KansasLand Bancshares, Inc. is a strategic move that aligns with Equity Bancshares, Inc.'s goals of expanding its geographic presence and consolidating its position in Kansas. This merger comes on the heels of the Bank of Kirksville acquisition, highlighting the company's aggressive expansion strategy. For investors, such consolidation can lead to improved market share and customer base, which can translate into enhanced long-term profitability.
However, M&A activities can also pose risks, including integration challenges and potential short-term disruptions. The success of these mergers will largely depend on how well the company can integrate these acquisitions into its existing operations without affecting service quality or incurring unexpected costs.
Moreover, the non-interest income of
As an investor, it's important to consider both the growth potential and the inherent risks associated with such an expansion strategy. Monitoring post-merger integration and its impact on the company’s overall financial health will be key in assessing long-term value.
The fluctuation in the effective tax rate from 20.8% in the previous quarter to 28.1% is significant and primarily attributable to the financial implications of the BOLI repositioning. The surrender of
Excluding the BOLI impact, the normalized tax rate would have been 17.5%, highlighting the one-off nature of this event. Investors should pay attention to such tax-related activities as they can cause significant short-term variances in reported earnings but might not reflect the company's ongoing operational performance.
Additionally, Equity Bancshares' investment in tax credit structures further underscores its efforts to manage its tax liabilities effectively. These credits can offer substantial tax reliefs and are an indication of the company's proactive approach in financial planning.
For retail investors, understanding these tax-related movements is important as they directly impact net earnings and, consequently, the perceived profitability of the company. It's also important to note that high effective tax rates due to such events might not be recurring, hence should be viewed in the larger context of annual performance.
Reports NIM of
“Our Company realized another excellent quarter driven by a continued increase in margin," said Brad S. Elliott, Chairman and CEO of Equity. "Our team continued to capitalize on opportunities to enhance customer relationships and build stockholder value as we look to leverage our balance sheet position to grow our franchise."
"In addition, during the quarter, our team effectively merged core systems following the Bank of Kirksville transaction while also analyzing, negotiating, and subsequently closing our acquisition of KansasLand Bank," Mr. Elliott said. "We continue to be positioned to facilitate strategic M&A. We have the teams, the processes and the experience to be the preferred consolidation partner in our geography."
Notable Items:
-
The Company realized earnings per diluted share of
, adjusted to exclude merger expenses of$0.99 and$2.3 million in surrender costs related to repositioning of BOLI contracts.$1.7 million - The Company integrated the operations of its previously completed merger with Rockhold Bancshares, Inc., while also announcing and subsequently closing (July 1) its merger with KansasLand Bancshares, Inc.
-
The Company realized expansion in net interest income and net interest margin, as the benefits of previously announced strategic transactions continued to be realized. Total net interest income for the quarter was
, an all-time high for the Company.$46.5 million -
The Company was active in its share repurchase plan during the quarter, purchasing 152,982 shares at a weighted average cost of
. Under the repurchase plan announced in the fourth quarter of 2023, 637,427 shares remain available for purchase.$33.35 -
Classified assets as a percentage of total risk based capital at Equity Bank closed the period at
8.5% while non-performing assets remained historically low. The allowance for credit losses closed the quarter at1.3% of total loans.
Financial Results for the Quarter Ended June 30, 2024
Net income allocable to common stockholders was
Net Interest Income
Net interest income was
The earning asset improvement was driven by the continued increase in originated and re-priced loan coupons, loan and investment assets added through the Bank of Kirksville merger and the expiration of a receive-fixed swap during the quarter. Deposits acquired from the Bank of Kirksville contributed to maintaining cost of interest-bearing deposits and dropping total cost of deposits.
Provision for Credit Losses
During the quarter, there was a provision of
Non-Interest Income
Total non-interest income was
Non-Interest Expense
Total non-interest expense for the quarter was
The conversion of systems following the acquisition of Bank of Kirksville was completed in the second quarter.
Income Tax Expense
The effective tax rate for the quarter was
Loans, Total Assets and Funding
Loans held for investment were
Total deposits were
Asset Quality
As of June 30, 2024, Equity’s allowance for credit losses to total loans remained materially consistent at
Capital
Quarter over quarter, book capital increased
The Company’s ratio of common equity tier 1 capital to risk-weighted assets was
Equity Bank's ratio of common equity tier 1 capital to risk-weighted assets was
Non-GAAP Financial Measures
In addition to evaluating the Company’s results of operations in accordance with accounting principles generally accepted in
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, Chris Navratil, will hold a conference call and webcast to discuss second quarter results on Wednesday, July 17, 2024, 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 August 1, 2024, accessible at investor.equitybank.com.
About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NYSE National, Inc. under the symbol “EQBK.” Learn more at www.equitybank.com.
Special Note Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “positioned,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include 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 7, 2024, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties arise from time to time and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.
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) |
||||||||||||||||
|
|
Three months ended
|
|
Six months ended
|
||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Interest and dividend income |
|
|
|
|
|
|
|
|
||||||||
Loans, including fees |
|
$ |
61,518 |
|
|
$ |
52,748 |
|
|
$ |
120,347 |
|
|
$ |
101,129 |
|
Securities, taxable |
|
|
10,176 |
|
|
|
5,813 |
|
|
|
20,053 |
|
|
|
11,760 |
|
Securities, nontaxable |
|
|
401 |
|
|
|
568 |
|
|
|
792 |
|
|
|
1,237 |
|
Federal funds sold and other |
|
|
3,037 |
|
|
|
2,127 |
|
|
|
5,707 |
|
|
|
3,253 |
|
Total interest and dividend income |
|
|
75,132 |
|
|
|
61,256 |
|
|
|
146,899 |
|
|
|
117,379 |
|
Interest expense |
|
|
|
|
|
|
|
|
||||||||
Deposits |
|
|
22,662 |
|
|
|
17,204 |
|
|
|
45,517 |
|
|
|
31,025 |
|
Federal funds purchased and retail repurchase agreements |
|
|
306 |
|
|
|
192 |
|
|
|
632 |
|
|
|
387 |
|
Federal Home Loan Bank advances |
|
|
3,789 |
|
|
|
953 |
|
|
|
4,933 |
|
|
|
1,971 |
|
Federal Reserve Bank borrowings |
|
|
— |
|
|
|
1,528 |
|
|
|
1,361 |
|
|
|
1,663 |
|
Subordinated debt |
|
|
1,899 |
|
|
|
1,950 |
|
|
|
3,798 |
|
|
|
3,794 |
|
Total interest expense |
|
|
28,656 |
|
|
|
21,827 |
|
|
|
56,241 |
|
|
|
38,840 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income |
|
|
46,476 |
|
|
|
39,429 |
|
|
|
90,658 |
|
|
|
78,539 |
|
Provision (reversal) for credit losses |
|
|
265 |
|
|
|
298 |
|
|
|
1,265 |
|
|
|
(68 |
) |
Net interest income after provision (reversal) for credit losses |
|
|
46,211 |
|
|
|
39,131 |
|
|
|
89,393 |
|
|
|
78,607 |
|
Non-interest income |
|
|
|
|
|
|
|
|
||||||||
Service charges and fees |
|
|
2,541 |
|
|
|
2,653 |
|
|
|
5,110 |
|
|
|
5,198 |
|
Debit card income |
|
|
2,621 |
|
|
|
2,653 |
|
|
|
5,068 |
|
|
|
5,207 |
|
Mortgage banking |
|
|
245 |
|
|
|
213 |
|
|
|
433 |
|
|
|
301 |
|
Increase in value of bank-owned life insurance |
|
|
911 |
|
|
|
757 |
|
|
|
1,739 |
|
|
|
2,340 |
|
Net gain on acquisition and branch sales |
|
|
60 |
|
|
|
— |
|
|
|
1,300 |
|
|
|
— |
|
Net gains (losses) from securities transactions |
|
|
(27 |
) |
|
|
(1,322 |
) |
|
|
16 |
|
|
|
(1,290 |
) |
Other |
|
|
2,607 |
|
|
|
1,996 |
|
|
|
7,023 |
|
|
|
3,794 |
|
Total non-interest income |
|
|
8,958 |
|
|
|
6,950 |
|
|
|
20,689 |
|
|
|
15,550 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
||||||||
Salaries and employee benefits |
|
|
17,827 |
|
|
|
15,237 |
|
|
|
35,924 |
|
|
|
31,929 |
|
Net occupancy and equipment |
|
|
3,787 |
|
|
|
2,940 |
|
|
|
7,322 |
|
|
|
5,819 |
|
Data processing |
|
|
5,036 |
|
|
|
4,493 |
|
|
|
9,864 |
|
|
|
8,409 |
|
Professional fees |
|
|
1,778 |
|
|
|
1,645 |
|
|
|
3,170 |
|
|
|
3,029 |
|
Advertising and business development |
|
|
1,291 |
|
|
|
1,249 |
|
|
|
2,529 |
|
|
|
2,408 |
|
Telecommunications |
|
|
572 |
|
|
|
516 |
|
|
|
1,227 |
|
|
|
1,001 |
|
FDIC insurance |
|
|
590 |
|
|
|
515 |
|
|
|
1,161 |
|
|
|
875 |
|
Courier and postage |
|
|
620 |
|
|
|
463 |
|
|
|
1,226 |
|
|
|
921 |
|
Free nationwide ATM cost |
|
|
531 |
|
|
|
524 |
|
|
|
1,025 |
|
|
|
1,049 |
|
Amortization of core deposit intangibles |
|
|
1,218 |
|
|
|
918 |
|
|
|
2,117 |
|
|
|
1,836 |
|
Loan expense |
|
|
195 |
|
|
|
136 |
|
|
|
304 |
|
|
|
253 |
|
Other real estate owned |
|
|
17 |
|
|
|
71 |
|
|
|
(67 |
) |
|
|
190 |
|
Merger expenses |
|
|
2,287 |
|
|
|
— |
|
|
|
3,843 |
|
|
|
— |
|
Other |
|
|
3,122 |
|
|
|
4,423 |
|
|
|
6,378 |
|
|
|
8,640 |
|
Total non-interest expense |
|
|
38,871 |
|
|
|
33,130 |
|
|
|
76,023 |
|
|
|
66,359 |
|
Income (loss) before income tax |
|
|
16,298 |
|
|
|
12,951 |
|
|
|
34,059 |
|
|
|
27,798 |
|
Provision for income taxes |
|
|
4,582 |
|
|
|
1,495 |
|
|
|
8,275 |
|
|
|
4,019 |
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
11,716 |
|
|
$ |
11,456 |
|
|
$ |
25,784 |
|
|
$ |
23,779 |
|
Basic earnings (loss) per share |
|
$ |
0.77 |
|
|
$ |
0.74 |
|
|
$ |
1.68 |
|
|
$ |
1.52 |
|
Diluted earnings (loss) per share |
|
$ |
0.76 |
|
|
$ |
0.74 |
|
|
$ |
1.66 |
|
|
$ |
1.51 |
|
Weighted average common shares |
|
|
15,248,703 |
|
|
|
15,468,378 |
|
|
|
15,337,206 |
|
|
|
15,662,515 |
|
Weighted average diluted common shares |
|
|
15,377,980 |
|
|
|
15,554,255 |
|
|
|
15,473,386 |
|
|
|
15,789,061 |
|
TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||||||||||||
(Dollars in thousands, except per share data) |
||||||||||||||||||||
|
|
As of and for the three months ended |
||||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans, including fees |
|
$ |
61,518 |
|
|
$ |
58,829 |
|
|
$ |
54,932 |
|
|
$ |
55,152 |
|
|
$ |
52,748 |
|
Securities, taxable |
|
|
10,176 |
|
|
|
9,877 |
|
|
|
6,417 |
|
|
|
5,696 |
|
|
|
5,813 |
|
Securities, nontaxable |
|
|
401 |
|
|
|
391 |
|
|
|
354 |
|
|
|
369 |
|
|
|
568 |
|
Federal funds sold and other |
|
|
3,037 |
|
|
|
2,670 |
|
|
|
2,591 |
|
|
|
3,822 |
|
|
|
2,127 |
|
Total interest and dividend income |
|
|
75,132 |
|
|
|
71,767 |
|
|
|
64,294 |
|
|
|
65,039 |
|
|
|
61,256 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
22,662 |
|
|
|
22,855 |
|
|
|
20,074 |
|
|
|
19,374 |
|
|
|
17,204 |
|
Federal funds purchased and retail repurchase agreements |
|
|
306 |
|
|
|
326 |
|
|
|
298 |
|
|
|
246 |
|
|
|
192 |
|
Federal Home Loan Bank advances |
|
|
3,789 |
|
|
|
1,144 |
|
|
|
1,005 |
|
|
|
968 |
|
|
|
953 |
|
Federal Reserve Bank borrowings |
|
|
— |
|
|
|
1,361 |
|
|
|
1,546 |
|
|
|
1,546 |
|
|
|
1,528 |
|
Subordinated debt |
|
|
1,899 |
|
|
|
1,899 |
|
|
|
1,904 |
|
|
|
1,893 |
|
|
|
1,950 |
|
Total interest expense |
|
|
28,656 |
|
|
|
27,585 |
|
|
|
24,827 |
|
|
|
24,027 |
|
|
|
21,827 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income |
|
|
46,476 |
|
|
|
44,182 |
|
|
|
39,467 |
|
|
|
41,012 |
|
|
|
39,429 |
|
Provision (reversal) for credit losses |
|
|
265 |
|
|
|
1,000 |
|
|
|
711 |
|
|
|
1,230 |
|
|
|
298 |
|
Net interest income after provision (reversal) for credit losses |
|
|
46,211 |
|
|
|
43,182 |
|
|
|
38,756 |
|
|
|
39,782 |
|
|
|
39,131 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges and fees |
|
|
2,541 |
|
|
|
2,569 |
|
|
|
2,299 |
|
|
|
2,690 |
|
|
|
2,653 |
|
Debit card income |
|
|
2,621 |
|
|
|
2,447 |
|
|
|
2,524 |
|
|
|
2,591 |
|
|
|
2,653 |
|
Mortgage banking |
|
|
245 |
|
|
|
188 |
|
|
|
125 |
|
|
|
226 |
|
|
|
213 |
|
Increase in value of bank-owned life insurance |
|
|
911 |
|
|
|
828 |
|
|
|
925 |
|
|
|
794 |
|
|
|
757 |
|
Net gain on acquisition and branch sales |
|
|
60 |
|
|
|
1,240 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net gains (losses) from securities transactions |
|
|
(27 |
) |
|
|
43 |
|
|
|
(50,618 |
) |
|
|
(1 |
) |
|
|
(1,322 |
) |
Other |
|
|
2,607 |
|
|
|
4,416 |
|
|
|
1,331 |
|
|
|
2,435 |
|
|
|
1,996 |
|
Total non-interest income |
|
|
8,958 |
|
|
|
11,731 |
|
|
|
(43,414 |
) |
|
|
8,735 |
|
|
|
6,950 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and employee benefits |
|
|
17,827 |
|
|
|
18,097 |
|
|
|
16,598 |
|
|
|
15,857 |
|
|
|
15,237 |
|
Net occupancy and equipment |
|
|
3,787 |
|
|
|
3,535 |
|
|
|
3,244 |
|
|
|
3,262 |
|
|
|
2,940 |
|
Data processing |
|
|
5,036 |
|
|
|
4,828 |
|
|
|
4,471 |
|
|
|
4,553 |
|
|
|
4,493 |
|
Professional fees |
|
|
1,778 |
|
|
|
1,392 |
|
|
|
1,413 |
|
|
|
1,312 |
|
|
|
1,645 |
|
Advertising and business development |
|
|
1,291 |
|
|
|
1,238 |
|
|
|
1,598 |
|
|
|
1,419 |
|
|
|
1,249 |
|
Telecommunications |
|
|
572 |
|
|
|
655 |
|
|
|
460 |
|
|
|
502 |
|
|
|
516 |
|
FDIC insurance |
|
|
590 |
|
|
|
571 |
|
|
|
660 |
|
|
|
660 |
|
|
|
515 |
|
Courier and postage |
|
|
620 |
|
|
|
606 |
|
|
|
577 |
|
|
|
548 |
|
|
|
463 |
|
Free nationwide ATM cost |
|
|
531 |
|
|
|
494 |
|
|
|
508 |
|
|
|
516 |
|
|
|
524 |
|
Amortization of core deposit intangibles |
|
|
1,218 |
|
|
|
899 |
|
|
|
739 |
|
|
|
799 |
|
|
|
918 |
|
Loan expense |
|
|
195 |
|
|
|
109 |
|
|
|
155 |
|
|
|
132 |
|
|
|
136 |
|
Other real estate owned |
|
|
17 |
|
|
|
(84 |
) |
|
|
224 |
|
|
|
128 |
|
|
|
71 |
|
Merger expenses |
|
|
2,287 |
|
|
|
1,556 |
|
|
|
297 |
|
|
|
— |
|
|
|
— |
|
Other |
|
|
3,122 |
|
|
|
3,256 |
|
|
|
4,054 |
|
|
|
4,556 |
|
|
|
4,423 |
|
Total non-interest expense |
|
|
38,871 |
|
|
|
37,152 |
|
|
|
34,998 |
|
|
|
34,244 |
|
|
|
33,130 |
|
Income (loss) before income tax |
|
|
16,298 |
|
|
|
17,761 |
|
|
|
(39,656 |
) |
|
|
14,273 |
|
|
|
12,951 |
|
Provision for income taxes (benefit) |
|
|
4,582 |
|
|
|
3,693 |
|
|
|
(11,357 |
) |
|
|
1,932 |
|
|
|
1,495 |
|
Net income (loss) and net income (loss) allocable to common stockholders |
|
$ |
11,716 |
|
|
$ |
14,068 |
|
|
$ |
(28,299 |
) |
|
$ |
12,341 |
|
|
$ |
11,456 |
|
Basic earnings (loss) per share |
|
$ |
0.77 |
|
|
$ |
0.91 |
|
|
$ |
(1.84 |
) |
|
$ |
0.80 |
|
|
$ |
0.74 |
|
Diluted earnings (loss) per share |
|
$ |
0.76 |
|
|
$ |
0.90 |
|
|
$ |
(1.84 |
) |
|
$ |
0.80 |
|
|
$ |
0.74 |
|
Weighted average common shares |
|
|
15,248,703 |
|
|
|
15,425,709 |
|
|
|
15,417,200 |
|
|
|
15,404,992 |
|
|
|
15,468,378 |
|
Weighted average diluted common shares |
|
|
15,377,980 |
|
|
|
15,569,225 |
|
|
|
15,417,200 |
|
|
|
15,507,172 |
|
|
|
15,554,255 |
|
TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) |
||||||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
||||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and due from banks |
|
$ |
244,321 |
|
|
$ |
217,611 |
|
|
$ |
363,289 |
|
|
$ |
183,404 |
|
|
$ |
262,604 |
|
Federal funds sold |
|
|
15,945 |
|
|
|
17,407 |
|
|
|
15,810 |
|
|
|
15,613 |
|
|
|
15,495 |
|
Cash and cash equivalents |
|
|
260,266 |
|
|
|
235,018 |
|
|
|
379,099 |
|
|
|
199,017 |
|
|
|
278,099 |
|
Available-for-sale securities |
|
|
1,042,176 |
|
|
|
1,091,717 |
|
|
|
919,648 |
|
|
|
1,057,009 |
|
|
|
1,094,748 |
|
Held-to-maturity securities |
|
|
5,226 |
|
|
|
2,205 |
|
|
|
2,209 |
|
|
|
2,212 |
|
|
|
2,216 |
|
Loans held for sale |
|
|
1,959 |
|
|
|
1,311 |
|
|
|
476 |
|
|
|
627 |
|
|
|
2,456 |
|
Loans, net of allowance for credit losses(1) |
|
|
3,410,920 |
|
|
|
3,437,714 |
|
|
|
3,289,381 |
|
|
|
3,237,932 |
|
|
|
3,278,126 |
|
Other real estate owned, net |
|
|
2,989 |
|
|
|
1,465 |
|
|
|
1,833 |
|
|
|
3,369 |
|
|
|
4,362 |
|
Premises and equipment, net |
|
|
114,264 |
|
|
|
116,792 |
|
|
|
112,632 |
|
|
|
110,271 |
|
|
|
106,186 |
|
Bank-owned life insurance |
|
|
130,326 |
|
|
|
125,693 |
|
|
|
124,865 |
|
|
|
124,245 |
|
|
|
123,451 |
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
|
33,171 |
|
|
|
27,009 |
|
|
|
20,608 |
|
|
|
20,780 |
|
|
|
21,129 |
|
Interest receivable |
|
|
27,381 |
|
|
|
27,082 |
|
|
|
25,497 |
|
|
|
23,621 |
|
|
|
21,360 |
|
Goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
Core deposit intangibles, net |
|
|
16,636 |
|
|
|
17,854 |
|
|
|
7,222 |
|
|
|
7,961 |
|
|
|
8,760 |
|
Other |
|
|
147,102 |
|
|
|
102,075 |
|
|
|
98,021 |
|
|
|
105,122 |
|
|
|
100,889 |
|
Total assets |
|
$ |
5,245,517 |
|
|
$ |
5,239,036 |
|
|
$ |
5,034,592 |
|
|
$ |
4,945,267 |
|
|
$ |
5,094,883 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits |
|
|
|
|
|
|
|
|
|
|
||||||||||
Demand |
|
$ |
984,872 |
|
|
$ |
981,623 |
|
|
$ |
898,129 |
|
|
$ |
936,217 |
|
|
$ |
978,968 |
|
Total non-interest-bearing deposits |
|
|
984,872 |
|
|
|
981,623 |
|
|
|
898,129 |
|
|
|
936,217 |
|
|
|
978,968 |
|
Demand, savings and money market |
|
|
2,560,091 |
|
|
|
2,574,871 |
|
|
|
2,483,807 |
|
|
|
2,397,003 |
|
|
|
2,397,524 |
|
Time |
|
|
796,474 |
|
|
|
814,532 |
|
|
|
763,519 |
|
|
|
748,950 |
|
|
|
854,458 |
|
Total interest-bearing deposits |
|
|
3,356,565 |
|
|
|
3,389,403 |
|
|
|
3,247,326 |
|
|
|
3,145,953 |
|
|
|
3,251,982 |
|
Total deposits |
|
|
4,341,437 |
|
|
|
4,371,026 |
|
|
|
4,145,455 |
|
|
|
4,082,170 |
|
|
|
4,230,950 |
|
Federal funds purchased and retail repurchase agreements |
|
|
38,031 |
|
|
|
43,811 |
|
|
|
43,582 |
|
|
|
39,701 |
|
|
|
44,770 |
|
Federal Home Loan Bank advances and Federal Reserve Bank borrowings |
|
|
250,306 |
|
|
|
219,931 |
|
|
|
240,000 |
|
|
|
240,000 |
|
|
|
240,000 |
|
Subordinated debt |
|
|
97,196 |
|
|
|
97,058 |
|
|
|
96,921 |
|
|
|
96,787 |
|
|
|
96,653 |
|
Contractual obligations |
|
|
23,770 |
|
|
|
18,493 |
|
|
|
19,315 |
|
|
|
29,019 |
|
|
|
29,608 |
|
Interest payable and other liabilities |
|
|
33,342 |
|
|
|
31,941 |
|
|
|
36,459 |
|
|
|
39,460 |
|
|
|
34,467 |
|
Total liabilities |
|
|
4,784,082 |
|
|
|
4,782,260 |
|
|
|
4,581,732 |
|
|
|
4,527,137 |
|
|
|
4,676,448 |
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock |
|
|
208 |
|
|
|
208 |
|
|
|
207 |
|
|
|
207 |
|
|
|
207 |
|
Additional paid-in capital |
|
|
491,709 |
|
|
|
490,533 |
|
|
|
489,187 |
|
|
|
488,137 |
|
|
|
487,225 |
|
Retained earnings |
|
|
163,068 |
|
|
|
153,201 |
|
|
|
141,006 |
|
|
|
171,188 |
|
|
|
160,715 |
|
Accumulated other comprehensive income (loss), net of tax |
|
|
(62,005 |
) |
|
|
(60,788 |
) |
|
|
(57,920 |
) |
|
|
(122,047 |
) |
|
|
(110,225 |
) |
Treasury stock |
|
|
(131,545 |
) |
|
|
(126,378 |
) |
|
|
(119,620 |
) |
|
|
(119,355 |
) |
|
|
(119,487 |
) |
Total stockholders’ equity |
|
|
461,435 |
|
|
|
456,776 |
|
|
|
452,860 |
|
|
|
418,130 |
|
|
|
418,435 |
|
Total liabilities and stockholders’ equity |
|
$ |
5,245,517 |
|
|
$ |
5,239,036 |
|
|
$ |
5,034,592 |
|
|
$ |
4,945,267 |
|
|
$ |
5,094,883 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) Allowance for credit losses |
|
$ |
43,487 |
|
|
$ |
44,449 |
|
|
$ |
43,520 |
|
|
$ |
44,186 |
|
|
$ |
44,544 |
|
TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited) |
||||||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
As of and for the three months ended |
||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
Loans Held For Investment by Type |
|
|
|
|
|
|
|
|
|
|
||||||||||
Commercial real estate |
|
$ |
1,793,545 |
|
|
$ |
1,797,192 |
|
|
$ |
1,759,855 |
|
|
$ |
1,721,761 |
|
|
$ |
1,764,460 |
|
Commercial and industrial |
|
|
663,718 |
|
|
|
649,035 |
|
|
|
598,327 |
|
|
|
585,129 |
|
|
|
583,664 |
|
Residential real estate |
|
|
572,523 |
|
|
|
581,988 |
|
|
|
556,328 |
|
|
|
558,188 |
|
|
|
560,389 |
|
Agricultural real estate |
|
|
219,226 |
|
|
|
198,291 |
|
|
|
196,114 |
|
|
|
205,865 |
|
|
|
202,317 |
|
Agricultural |
|
|
104,341 |
|
|
|
149,312 |
|
|
|
118,587 |
|
|
|
103,352 |
|
|
|
104,510 |
|
Consumer |
|
|
101,054 |
|
|
|
106,345 |
|
|
|
103,690 |
|
|
|
107,823 |
|
|
|
107,330 |
|
Total loans held-for-investment |
|
|
3,454,407 |
|
|
|
3,482,163 |
|
|
|
3,332,901 |
|
|
|
3,282,118 |
|
|
|
3,322,670 |
|
Allowance for credit losses |
|
|
(43,487 |
) |
|
|
(44,449 |
) |
|
|
(43,520 |
) |
|
|
(44,186 |
) |
|
|
(44,544 |
) |
Net loans held for investment |
|
$ |
3,410,920 |
|
|
$ |
3,437,714 |
|
|
$ |
3,289,381 |
|
|
$ |
3,237,932 |
|
|
$ |
3,278,126 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Asset Quality Ratios |
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses on loans to total loans |
|
|
1.26 |
% |
|
|
1.28 |
% |
|
|
1.31 |
% |
|
|
1.35 |
% |
|
|
1.34 |
% |
Past due or nonaccrual loans to total loans |
|
|
1.15 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
1.03 |
% |
|
|
0.78 |
% |
Nonperforming assets to total assets |
|
|
0.52 |
% |
|
|
0.49 |
% |
|
|
0.53 |
% |
|
|
0.42 |
% |
|
|
0.31 |
% |
Nonperforming assets to total loans plus other
|
|
|
0.79 |
% |
|
|
0.73 |
% |
|
|
0.79 |
% |
|
|
0.63 |
% |
|
|
0.47 |
% |
Classified assets to bank total regulatory capital |
|
|
8.47 |
% |
|
|
6.85 |
% |
|
|
7.09 |
% |
|
|
6.27 |
% |
|
|
7.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Selected Average Balance Sheet Data (QTD Average) |
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment securities |
|
$ |
1,065,979 |
|
|
$ |
1,074,101 |
|
|
$ |
985,591 |
|
|
$ |
1,085,905 |
|
|
$ |
1,155,971 |
|
Total gross loans receivable |
|
|
3,459,476 |
|
|
|
3,452,553 |
|
|
|
3,293,755 |
|
|
|
3,281,483 |
|
|
|
3,337,497 |
|
Interest-earning assets |
|
|
4,745,713 |
|
|
|
4,742,200 |
|
|
|
4,480,279 |
|
|
|
4,635,384 |
|
|
|
4,678,744 |
|
Total assets |
|
|
5,196,258 |
|
|
|
5,152,915 |
|
|
|
4,892,712 |
|
|
|
5,046,179 |
|
|
|
5,064,912 |
|
Interest-bearing deposits |
|
|
3,275,765 |
|
|
|
3,319,907 |
|
|
|
3,092,637 |
|
|
|
3,206,300 |
|
|
|
3,226,965 |
|
Borrowings |
|
|
450,178 |
|
|
|
390,166 |
|
|
|
391,691 |
|
|
|
385,125 |
|
|
|
385,504 |
|
Total interest-bearing liabilities |
|
|
3,725,943 |
|
|
|
3,710,073 |
|
|
|
3,484,328 |
|
|
|
3,591,425 |
|
|
|
3,612,469 |
|
Total deposits |
|
|
4,250,843 |
|
|
|
4,254,883 |
|
|
|
4,019,362 |
|
|
|
4,177,332 |
|
|
|
4,204,334 |
|
Total liabilities |
|
|
4,740,936 |
|
|
|
4,692,671 |
|
|
|
4,469,505 |
|
|
|
4,619,919 |
|
|
|
4,640,050 |
|
Total stockholders' equity |
|
|
455,322 |
|
|
|
460,244 |
|
|
|
423,207 |
|
|
|
426,260 |
|
|
|
424,862 |
|
Tangible common equity* |
|
|
383,899 |
|
|
|
398,041 |
|
|
|
361,451 |
|
|
|
363,625 |
|
|
|
361,409 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Performance ratios |
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets (ROAA) annualized |
|
|
0.91 |
% |
|
|
1.10 |
% |
|
|
(2.29 |
)% |
|
|
0.97 |
% |
|
|
0.91 |
% |
Return on average assets before income tax and
|
|
|
1.28 |
% |
|
|
1.46 |
% |
|
|
(3.16 |
)% |
|
|
1.22 |
% |
|
|
1.05 |
% |
Return on average equity (ROAE) annualized |
|
|
10.35 |
% |
|
|
12.29 |
% |
|
|
(26.53 |
)% |
|
|
11.49 |
% |
|
|
10.82 |
% |
Return on average equity before income tax and
|
|
|
14.63 |
% |
|
|
16.39 |
% |
|
|
(36.51 |
)% |
|
|
14.43 |
% |
|
|
12.51 |
% |
Return on average tangible common equity
|
|
|
13.31 |
% |
|
|
14.96 |
% |
|
|
(30.39 |
)% |
|
|
14.18 |
% |
|
|
13.55 |
% |
Yield on loans annualized |
|
|
7.15 |
% |
|
|
6.85 |
% |
|
|
6.62 |
% |
|
|
6.67 |
% |
|
|
6.34 |
% |
Cost of interest-bearing deposits annualized |
|
|
2.78 |
% |
|
|
2.77 |
% |
|
|
2.58 |
% |
|
|
2.40 |
% |
|
|
2.14 |
% |
Cost of total deposits annualized |
|
|
2.14 |
% |
|
|
2.16 |
% |
|
|
1.98 |
% |
|
|
1.84 |
% |
|
|
1.64 |
% |
Net interest margin annualized |
|
|
3.94 |
% |
|
|
3.75 |
% |
|
|
3.49 |
% |
|
|
3.51 |
% |
|
|
3.38 |
% |
Efficiency ratio* |
|
|
66.03 |
% |
|
|
65.16 |
% |
|
|
74.35 |
% |
|
|
68.83 |
% |
|
|
69.44 |
% |
Non-interest income / average assets |
|
|
0.69 |
% |
|
|
0.92 |
% |
|
|
(3.52 |
)% |
|
|
0.69 |
% |
|
|
0.55 |
% |
Non-interest expense / average assets |
|
|
3.01 |
% |
|
|
2.90 |
% |
|
|
2.84 |
% |
|
|
2.69 |
% |
|
|
2.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 Leverage Ratio |
|
|
9.14 |
% |
|
|
9.10 |
% |
|
|
9.46 |
% |
|
|
9.77 |
% |
|
|
9.54 |
% |
Common Equity Tier 1 Capital Ratio |
|
|
11.12 |
% |
|
|
11.14 |
% |
|
|
11.74 |
% |
|
|
12.65 |
% |
|
|
12.23 |
% |
Tier 1 Risk Based Capital Ratio |
|
|
11.70 |
% |
|
|
11.73 |
% |
|
|
12.36 |
% |
|
|
13.28 |
% |
|
|
12.84 |
% |
Total Risk Based Capital Ratio |
|
|
14.61 |
% |
|
|
14.71 |
% |
|
|
15.48 |
% |
|
|
16.42 |
% |
|
|
15.96 |
% |
Total stockholders' equity to total assets |
|
|
8.80 |
% |
|
|
8.72 |
% |
|
|
8.99 |
% |
|
|
8.46 |
% |
|
|
8.21 |
% |
Tangible common equity to tangible assets* |
|
|
7.55 |
% |
|
|
7.45 |
% |
|
|
7.87 |
% |
|
|
7.29 |
% |
|
|
7.06 |
% |
Dividend payout ratio |
|
|
15.79 |
% |
|
|
13.31 |
% |
|
|
(6.65 |
)% |
|
|
15.13 |
% |
|
|
13.53 |
% |
Book value per common share |
|
$ |
30.36 |
|
|
$ |
29.80 |
|
|
$ |
29.35 |
|
|
$ |
27.13 |
|
|
$ |
27.18 |
|
Tangible book value per common share* |
|
$ |
25.70 |
|
|
$ |
25.10 |
|
|
$ |
25.37 |
|
|
$ |
23.09 |
|
|
$ |
23.08 |
|
Tangible book value per diluted common share* |
|
$ |
25.44 |
|
|
$ |
24.87 |
|
|
$ |
25.05 |
|
|
$ |
22.96 |
|
|
$ |
22.98 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GGAP financial measures, see Table 8. Non-GAAP Financial Measures. |
||||||||||||||||||||
TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited) (Dollars in thousands) |
|||||||||||||||||||||
|
For six months ended |
|
For six months ended |
||||||||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||||||||||
|
Average Outstanding
|
|
|
Interest Income/
|
|
|
Average
|
|
Average Outstanding
|
|
|
Interest Income/
|
|
|
Average
|
||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial |
$ |
634,879 |
|
|
$ |
25,194 |
|
|
|
|
|
$ |
584,081 |
|
|
$ |
20,519 |
|
|
|
|
Commercial real estate |
|
1,425,143 |
|
|
|
49,142 |
|
|
|
|
|
|
1,324,010 |
|
|
|
40,987 |
|
|
|
|
Real estate construction |
|
378,815 |
|
|
|
16,618 |
|
|
|
|
|
|
434,793 |
|
|
|
14,926 |
|
|
|
|
Residential real estate |
|
580,382 |
|
|
|
13,024 |
|
|
|
|
|
|
568,710 |
|
|
|
11,848 |
|
|
|
|
Agricultural real estate |
|
201,520 |
|
|
|
7,412 |
|
|
|
|
|
|
202,742 |
|
|
|
6,501 |
|
|
|
|
Agricultural |
|
129,167 |
|
|
|
5,493 |
|
|
|
|
|
|
100,795 |
|
|
|
3,183 |
|
|
|
|
Consumer |
|
106,107 |
|
|
|
3,464 |
|
|
|
|
|
|
106,546 |
|
|
|
3,165 |
|
|
|
|
Total loans |
|
3,456,013 |
|
|
|
120,347 |
|
|
|
|
|
|
3,321,677 |
|
|
|
101,129 |
|
|
|
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable securities |
|
1,008,742 |
|
|
|
20,053 |
|
|
|
|
|
|
1,076,108 |
|
|
|
11,760 |
|
|
|
|
Nontaxable securities |
|
61,298 |
|
|
|
792 |
|
|
|
|
|
|
94,538 |
|
|
|
1,237 |
|
|
|
|
Total securities |
|
1,070,040 |
|
|
|
20,845 |
|
|
|
|
|
|
1,170,646 |
|
|
|
12,997 |
|
|
|
|
Federal funds sold and other |
|
217,902 |
|
|
|
5,707 |
|
|
|
|
|
|
152,747 |
|
|
|
3,253 |
|
|
|
|
Total interest-earning assets |
$ |
4,743,955 |
|
|
|
146,899 |
|
|
|
|
|
$ |
4,645,070 |
|
|
|
117,379 |
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand, savings and money market deposits |
$ |
2,525,710 |
|
|
|
31,605 |
|
|
|
|
|
$ |
2,336,791 |
|
|
|
18,957 |
|
|
|
|
Time deposits |
|
772,126 |
|
|
|
13,912 |
|
|
|
|
|
|
894,446 |
|
|
|
12,068 |
|
|
|
|
Total interest-bearing deposits |
|
3,297,836 |
|
|
|
45,517 |
|
|
|
|
|
|
3,231,237 |
|
|
|
31,025 |
|
|
|
|
FHLB advances |
|
208,160 |
|
|
|
4,933 |
|
|
|
|
|
|
95,497 |
|
|
|
1,971 |
|
|
|
|
Other borrowings |
|
212,013 |
|
|
|
5,791 |
|
|
|
|
|
|
221,601 |
|
|
|
5,844 |
|
|
|
|
Total interest-bearing liabilities |
$ |
3,718,009 |
|
|
|
56,241 |
|
|
|
|
|
$ |
3,548,335 |
|
|
|
38,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
90,658 |
|
|
|
|
|
|
|
$ |
78,539 |
|
|
|
||||
Interest rate spread |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) Average loan balances include nonaccrual loans. |
|||||||||||||||||||||
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. |
|||||||||||||||||||||
(3) Tax exempt income is not included in the above table on a tax-equivalent basis. |
|||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
|||||||||||||||||||||
TABLE 6. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited) (Dollars in thousands) |
|||||||||||||||||||||
|
For the three months ended |
|
For the three months ended |
||||||||||||||||||
|
June 30, 2024 |
|
June 30, 2023 |
||||||||||||||||||
|
Average Outstanding
|
|
|
Interest Income/
|
|
|
Average
|
|
Average Outstanding
|
|
|
Interest Income/
|
|
|
Average
|
||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial |
$ |
635,123 |
|
|
$ |
12,782 |
|
|
|
|
|
$ |
590,634 |
|
|
$ |
10,885 |
|
|
|
|
Commercial real estate |
|
1,401,109 |
|
|
|
24,541 |
|
|
|
|
|
|
1,303,520 |
|
|
|
20,875 |
|
|
|
|
Real estate construction |
|
402,831 |
|
|
|
8,843 |
|
|
|
|
|
|
465,231 |
|
|
|
8,231 |
|
|
|
|
Residential real estate |
|
580,338 |
|
|
|
6,563 |
|
|
|
|
|
|
567,297 |
|
|
|
6,048 |
|
|
|
|
Agricultural real estate |
|
206,018 |
|
|
|
3,944 |
|
|
|
|
|
|
202,584 |
|
|
|
3,387 |
|
|
|
|
Agricultural |
|
127,298 |
|
|
|
3,102 |
|
|
|
|
|
|
101,333 |
|
|
|
1,704 |
|
|
|
|
Consumer |
|
106,759 |
|
|
|
1,743 |
|
|
|
|
|
|
106,898 |
|
|
|
1,618 |
|
|
|
|
Total loans |
|
3,459,476 |
|
|
|
61,518 |
|
|
|
|
|
|
3,337,497 |
|
|
|
52,748 |
|
|
|
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable securities |
|
1,006,018 |
|
|
|
10,176 |
|
|
|
|
|
|
1,068,653 |
|
|
|
5,813 |
|
|
|
|
Nontaxable securities |
|
59,961 |
|
|
|
401 |
|
|
|
|
|
|
87,318 |
|
|
|
568 |
|
|
|
|
Total securities |
|
1,065,979 |
|
|
|
10,577 |
|
|
|
|
|
|
1,155,971 |
|
|
|
6,381 |
|
|
|
|
Federal funds sold and other |
|
220,258 |
|
|
|
3,037 |
|
|
|
|
|
|
185,276 |
|
|
|
2,127 |
|
|
|
|
Total interest-earning assets |
$ |
4,745,713 |
|
|
|
75,132 |
|
|
|
|
|
$ |
4,678,744 |
|
|
|
61,256 |
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand, savings and money market deposits |
$ |
2,530,899 |
|
|
|
15,946 |
|
|
|
|
|
$ |
2,323,685 |
|
|
|
10,503 |
|
|
|
|
Time deposits |
|
744,866 |
|
|
|
6,716 |
|
|
|
|
|
|
903,280 |
|
|
|
6,701 |
|
|
|
|
Total interest-bearing deposits |
|
3,275,765 |
|
|
|
22,662 |
|
|
|
|
|
|
3,226,965 |
|
|
|
17,204 |
|
|
|
|
FHLB advances |
|
302,972 |
|
|
|
3,789 |
|
|
|
|
|
|
101,845 |
|
|
|
953 |
|
|
|
|
Other borrowings |
|
147,206 |
|
|
|
2,205 |
|
|
|
|
|
|
283,659 |
|
|
|
3,670 |
|
|
|
|
Total interest-bearing liabilities |
$ |
3,725,943 |
|
|
|
28,656 |
|
|
|
|
|
$ |
3,612,469 |
|
|
|
21,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
46,476 |
|
|
|
|
|
|
|
$ |
39,429 |
|
|
|
||||
Interest rate spread |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) Average loan balances include nonaccrual loans. |
|||||||||||||||||||||
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. |
|||||||||||||||||||||
(3) Tax exempt income is not included in the above table on a tax-equivalent basis. |
|||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
|||||||||||||||||||||
TABLE 7. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited) (Dollars in thousands) |
|||||||||||||||||||||
|
For the three months ended |
|
For the three months ended |
||||||||||||||||||
|
June 30, 2024 |
|
March 31, 2024 |
||||||||||||||||||
|
Average Outstanding
|
|
|
Interest Income/
|
|
|
Average
|
|
Average Outstanding
|
|
|
Interest Income/
|
|
|
Average
|
||||||
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loans (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and industrial |
$ |
635,123 |
|
|
$ |
12,782 |
|
|
|
|
|
$ |
634,637 |
|
|
$ |
12,412 |
|
|
|
|
Commercial real estate |
|
1,401,109 |
|
|
|
24,541 |
|
|
|
|
|
|
1,449,177 |
|
|
|
24,601 |
|
|
|
|
Real estate construction |
|
402,831 |
|
|
|
8,843 |
|
|
|
|
|
|
354,801 |
|
|
|
7,775 |
|
|
|
|
Residential real estate |
|
580,338 |
|
|
|
6,563 |
|
|
|
|
|
|
580,426 |
|
|
|
6,461 |
|
|
|
|
Agricultural real estate |
|
206,018 |
|
|
|
3,944 |
|
|
|
|
|
|
197,023 |
|
|
|
3,468 |
|
|
|
|
Agricultural |
|
127,298 |
|
|
|
3,102 |
|
|
|
|
|
|
131,035 |
|
|
|
2,391 |
|
|
|
|
Consumer |
|
106,759 |
|
|
|
1,743 |
|
|
|
|
|
|
105,454 |
|
|
|
1,721 |
|
|
|
|
Total loans |
|
3,459,476 |
|
|
|
61,518 |
|
|
|
|
|
|
3,452,553 |
|
|
|
58,829 |
|
|
|
|
Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable securities |
|
1,006,018 |
|
|
|
10,176 |
|
|
|
|
|
|
1,011,466 |
|
|
|
9,877 |
|
|
|
|
Nontaxable securities |
|
59,961 |
|
|
|
401 |
|
|
|
|
|
|
62,635 |
|
|
|
391 |
|
|
|
|
Total securities |
|
1,065,979 |
|
|
|
10,577 |
|
|
|
|
|
|
1,074,101 |
|
|
|
10,268 |
|
|
|
|
Federal funds sold and other |
|
220,258 |
|
|
|
3,037 |
|
|
|
|
|
|
215,546 |
|
|
|
2,670 |
|
|
|
|
Total interest-earning assets |
$ |
4,745,713 |
|
|
|
75,132 |
|
|
|
|
|
$ |
4,742,200 |
|
|
|
71,767 |
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Demand savings and money market deposits |
$ |
2,530,899 |
|
|
|
15,946 |
|
|
|
|
|
$ |
2,520,521 |
|
|
|
15,660 |
|
|
|
|
Time deposits |
|
744,866 |
|
|
|
6,716 |
|
|
|
|
|
|
799,386 |
|
|
|
7,195 |
|
|
|
|
Total interest-bearing deposits |
|
3,275,765 |
|
|
|
22,662 |
|
|
|
|
|
|
3,319,907 |
|
|
|
22,855 |
|
|
|
|
FHLB advances |
|
302,972 |
|
|
|
3,789 |
|
|
|
|
|
|
113,348 |
|
|
|
1,144 |
|
|
|
|
Other borrowings |
|
147,206 |
|
|
|
2,205 |
|
|
|
|
|
|
276,818 |
|
|
|
3,586 |
|
|
|
|
Total interest-bearing liabilities |
$ |
3,725,943 |
|
|
|
28,656 |
|
|
|
|
|
$ |
3,710,073 |
|
|
|
27,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income |
|
|
|
$ |
46,476 |
|
|
|
|
|
|
|
$ |
44,182 |
|
|
|
||||
Interest rate spread |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest margin (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
(1) Average loan balances include nonaccrual loans. |
|||||||||||||||||||||
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. |
|||||||||||||||||||||
(3) Tax exempt income is not included in the above table on a tax-equivalent basis. |
|||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
|||||||||||||||||||||
TABLE 8. NON-GAAP FINANCIAL MEASURES (Unaudited) |
||||||||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
As of and for the three months ended |
||||||||||||||||||
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
||||||||||
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total stockholders' equity |
|
$ |
461,435 |
|
|
$ |
456,776 |
|
|
$ |
452,860 |
|
|
$ |
418,130 |
|
|
$ |
418,435 |
|
Less: goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
Less: core deposit intangibles, net |
|
|
16,636 |
|
|
|
17,854 |
|
|
|
7,222 |
|
|
|
7,961 |
|
|
|
8,760 |
|
Less: mortgage servicing rights, net |
|
|
25 |
|
|
|
50 |
|
|
|
75 |
|
|
|
100 |
|
|
|
126 |
|
Less: naming rights, net |
|
|
979 |
|
|
|
989 |
|
|
|
1,000 |
|
|
|
1,011 |
|
|
|
1,022 |
|
Tangible common equity |
|
$ |
390,694 |
|
|
$ |
384,782 |
|
|
$ |
391,462 |
|
|
$ |
355,957 |
|
|
$ |
355,426 |
|
Common shares outstanding at period end |
|
|
15,200,194 |
|
|
|
15,327,799 |
|
|
|
15,428,251 |
|
|
|
15,413,064 |
|
|
|
15,396,739 |
|
Diluted common shares outstanding at period end |
|
|
15,358,396 |
|
|
|
15,469,531 |
|
|
|
15,629,185 |
|
|
|
15,500,749 |
|
|
|
15,468,319 |
|
Book value per common share |
|
$ |
30.36 |
|
|
$ |
29.80 |
|
|
$ |
29.35 |
|
|
$ |
27.13 |
|
|
$ |
27.18 |
|
Tangible book value per common share |
|
$ |
25.70 |
|
|
$ |
25.10 |
|
|
$ |
25.37 |
|
|
$ |
23.09 |
|
|
$ |
23.08 |
|
Tangible book value per diluted common share |
|
$ |
25.44 |
|
|
$ |
24.87 |
|
|
$ |
25.05 |
|
|
$ |
22.96 |
|
|
$ |
22.98 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total assets |
|
$ |
5,245,517 |
|
|
$ |
5,239,036 |
|
|
$ |
5,034,592 |
|
|
$ |
4,945,267 |
|
|
$ |
5,094,883 |
|
Less: goodwill |
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
|
|
53,101 |
|
Less: core deposit intangibles, net |
|
|
16,636 |
|
|
|
17,854 |
|
|
|
7,222 |
|
|
|
7,961 |
|
|
|
8,760 |
|
Less: mortgage servicing rights, net |
|
|
25 |
|
|
|
50 |
|
|
|
75 |
|
|
|
100 |
|
|
|
126 |
|
Less: naming rights, net |
|
|
979 |
|
|
|
989 |
|
|
|
1,000 |
|
|
|
1,011 |
|
|
|
1,022 |
|
Tangible assets |
|
$ |
5,174,776 |
|
|
$ |
5,167,042 |
|
|
$ |
4,973,194 |
|
|
$ |
4,883,094 |
|
|
$ |
5,031,874 |
|
Total stockholders' equity to total assets |
|
|
8.80 |
% |
|
|
8.72 |
% |
|
|
8.99 |
% |
|
|
8.46 |
% |
|
|
8.21 |
% |
Tangible common equity to tangible assets |
|
|
7.55 |
% |
|
|
7.45 |
% |
|
|
7.87 |
% |
|
|
7.29 |
% |
|
|
7.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total average stockholders' equity |
|
$ |
455,322 |
|
|
$ |
460,244 |
|
|
$ |
423,207 |
|
|
$ |
426,260 |
|
|
$ |
424,862 |
|
Less: average intangible assets |
|
|
71,423 |
|
|
|
62,203 |
|
|
|
61,756 |
|
|
|
62,635 |
|
|
|
63,453 |
|
Average tangible common equity |
|
$ |
383,899 |
|
|
$ |
398,041 |
|
|
$ |
361,451 |
|
|
$ |
363,625 |
|
|
$ |
361,409 |
|
Net income (loss) allocable to common stockholders |
|
$ |
11,716 |
|
|
$ |
14,068 |
|
|
$ |
(28,299 |
) |
|
$ |
12,341 |
|
|
$ |
11,456 |
|
Add: amortization of intangible assets |
|
|
1,254 |
|
|
|
935 |
|
|
|
775 |
|
|
|
835 |
|
|
|
954 |
|
Less: tax effect of intangible assets amortization |
|
|
263 |
|
|
|
196 |
|
|
|
163 |
|
|
|
175 |
|
|
|
200 |
|
Adjusted net income (loss) allocable to common
|
|
$ |
12,707 |
|
|
$ |
14,807 |
|
|
$ |
(27,687 |
) |
|
$ |
13,001 |
|
|
$ |
12,210 |
|
Return on total average stockholders' equity
|
|
|
10.35 |
% |
|
|
12.29 |
% |
|
|
(26.53 |
)% |
|
|
11.49 |
% |
|
|
10.82 |
% |
Return on average tangible common equity
|
|
|
13.31 |
% |
|
|
14.96 |
% |
|
|
(30.39 |
)% |
|
|
14.18 |
% |
|
|
13.55 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-interest expense |
|
$ |
38,871 |
|
|
$ |
37,152 |
|
|
$ |
34,998 |
|
|
$ |
34,244 |
|
|
$ |
33,130 |
|
Less: merger expense |
|
|
2,287 |
|
|
|
1,556 |
|
|
|
297 |
|
|
|
— |
|
|
|
— |
|
Adjusted non-interest expense |
|
$ |
36,584 |
|
|
$ |
35,596 |
|
|
$ |
34,701 |
|
|
$ |
34,244 |
|
|
$ |
33,130 |
|
Net interest income |
|
$ |
46,476 |
|
|
$ |
44,182 |
|
|
$ |
39,467 |
|
|
$ |
41,012 |
|
|
$ |
39,429 |
|
Non-interest income |
|
|
8,958 |
|
|
|
11,731 |
|
|
|
(43,414 |
) |
|
|
8,735 |
|
|
|
6,950 |
|
Less: net gain on acquisition and branch sales |
|
|
60 |
|
|
|
1,240 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: net gains (losses) from securities transactions |
|
|
(27 |
) |
|
|
43 |
|
|
|
(50,618 |
) |
|
|
(1 |
) |
|
|
(1,322 |
) |
Adjusted non-interest income |
|
$ |
8,925 |
|
|
$ |
10,448 |
|
|
$ |
7,204 |
|
|
$ |
8,736 |
|
|
$ |
8,272 |
|
Net interest income plus adjusted non-interest income |
|
$ |
55,401 |
|
|
$ |
54,630 |
|
|
$ |
46,671 |
|
|
$ |
49,748 |
|
|
$ |
47,701 |
|
Non-interest expense to
|
|
|
70.12 |
% |
|
|
66.45 |
% |
|
|
-886.70 |
% |
|
|
68.84 |
% |
|
|
71.43 |
% |
Efficiency ratio |
|
|
66.03 |
% |
|
|
65.16 |
% |
|
|
74.35 |
% |
|
|
68.83 |
% |
|
|
69.45 |
% |
Net income (loss) allocable to common stockholders |
|
$ |
11,716 |
|
|
$ |
14,068 |
|
|
$ |
(28,299 |
) |
|
$ |
12,341 |
|
|
$ |
11,456 |
|
Add: income tax provision |
|
|
4,582 |
|
|
|
3,693 |
|
|
|
(11,357 |
) |
|
|
1,932 |
|
|
|
1,495 |
|
Add: provision (reversal) of credit losses |
|
|
265 |
|
|
|
1,000 |
|
|
|
711 |
|
|
|
1,230 |
|
|
|
298 |
|
Pre-tax, pre-provision income |
|
$ |
16,563 |
|
|
$ |
18,761 |
|
|
$ |
(38,945 |
) |
|
$ |
15,503 |
|
|
$ |
13,249 |
|
Total average assets |
|
$ |
5,196,258 |
|
|
$ |
5,152,915 |
|
|
$ |
4,892,712 |
|
|
$ |
5,046,179 |
|
|
$ |
5,064,912 |
|
Total average stockholders' equity |
|
$ |
455,322 |
|
|
$ |
460,244 |
|
|
$ |
423,207 |
|
|
$ |
426,620 |
|
|
$ |
424,862 |
|
Return on average assets (ROAA) annualized |
|
|
0.91 |
% |
|
|
1.10 |
% |
|
|
(2.29 |
)% |
|
|
0.97 |
% |
|
|
0.91 |
% |
Adjusted return on average assets |
|
|
1.28 |
% |
|
|
1.46 |
% |
|
|
(3.16 |
)% |
|
|
1.22 |
% |
|
|
1.05 |
% |
Adjusted return on average equity |
|
|
14.63 |
% |
|
|
16.39 |
% |
|
|
(36.51 |
)% |
|
|
14.43 |
% |
|
|
12.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) allocable to common stockholders |
|
$ |
11,716 |
|
|
$ |
14,068 |
|
|
$ |
(28,299 |
) |
|
$ |
12,341 |
|
|
$ |
11,456 |
|
Add: Day 1 -Provision |
|
|
— |
|
|
|
1,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Less: Gain (loss) from securities transactions |
|
|
(27 |
) |
|
|
43 |
|
|
|
(50,618 |
) |
|
|
(1 |
) |
|
|
(1,322 |
) |
Add: Merger expense |
|
|
2,287 |
|
|
|
1,556 |
|
|
|
297 |
|
|
|
— |
|
|
|
— |
|
Adjusted non-core items |
|
|
2,314 |
|
|
|
2,513 |
|
|
|
50,915 |
|
|
|
1 |
|
|
|
1,322 |
|
Tax effected non-core items |
|
|
1,828 |
|
|
|
1,985 |
|
|
|
40,223 |
|
|
|
1 |
|
|
|
1,044 |
|
BOLI tax adjustment |
|
|
1,730 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted operating net income |
|
$ |
15,274 |
|
|
$ |
16,053 |
|
|
$ |
11,924 |
|
|
$ |
12,342 |
|
|
$ |
12,500 |
|
GAAP earnings (loss) per diluted share |
|
$ |
0.76 |
|
|
$ |
0.90 |
|
|
$ |
(1.84 |
) |
|
$ |
0.80 |
|
|
$ |
0.74 |
|
Adjusted earnings (loss) per diluted share |
|
$ |
0.99 |
|
|
$ |
1.03 |
|
|
$ |
0.77 |
|
|
$ |
0.80 |
|
|
$ |
0.81 |
|
Total average assets |
|
$ |
5,196,258 |
|
|
$ |
5,152,915 |
|
|
$ |
4,892,712 |
|
|
$ |
5,046,179 |
|
|
$ |
5,064,912 |
|
Adjusted Operating ROAA |
|
|
1.18 |
% |
|
|
1.25 |
% |
|
|
0.97 |
% |
|
|
0.97 |
% |
|
|
1.00 |
% |
Weighted average diluted common shares |
|
|
15,377,980 |
|
|
|
15,569,225 |
|
|
|
15,417,200 |
|
|
|
15,507,172 |
|
|
|
15,554,255 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240716962204/en/
Investor Contact:
Brian J. Katzfey
VP, Director of Corporate Development and Investor Relations
Equity Bank
(316) 858-3128
bkatzfey@equitybank.com
Media Contact:
John J. Hanley
Chief Marketing Officer
Equity Bancshares, Inc.
(913) 583-8004
jhanley@equitybank.com
Source: Equity Bancshares
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