UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2016
OR
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ________ to ________
Commission File Number 001-37624
EQUITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Kansas |
|
72-1532188 |
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification No.) |
|
|
|
7701 East Kellogg Drive, Suite 200 Wichita, KS |
|
67207 |
(Address of principal executive offices) |
|
(Zip Code) |
Registrant’s telephone number, including area code: 316.612.6000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
o |
|
Accelerated filer |
o |
Non-accelerated filer |
x |
|
Smaller reporting company |
o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
|
Shares outstanding as of July 31, 2016 |
Class A Common Stock, par value $0.01 per share |
7,321,984 |
Class B Non-Voting Common Stock, par value $0.01 per share |
897,431 |
PART I |
5 |
|
Item 1. |
5 |
|
|
5 |
|
|
6 |
|
|
7 |
|
|
8 |
|
|
9 |
|
|
Condensed Notes to Interim Consolidated Financial Statements |
10 |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
34 |
|
34 |
|
|
36 |
|
|
37 |
|
|
49 |
|
|
62 |
|
|
65 |
|
Item 3. |
68 |
|
Item 4. |
70 |
|
Part II |
71 |
|
Item 1. |
71 |
|
Item 1A. |
71 |
|
Item 2. |
71 |
|
Item 3. |
71 |
|
Item 4. |
71 |
|
Item 5. |
71 |
|
Item 6. |
71 |
Important Notice about Information in this Quarterly Report
Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to “we,” “our,” “us,” “the Company” and “Equity” refer to Equity Bancshares, Inc. and its consolidated subsidiaries, including Equity Bank, which we sometimes refer to as “Equity Bank,” “the Bank” or “our Bank.”
The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and as of the dates specified herein.
2
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements reflect our current views with respect to, among other things, future events and our 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 our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution 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 we believe 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. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Item 1A - Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 17, 2016, and in Item 1A – Risk Factors of this Quarterly Report.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but are not limited to, the following:
|
· |
an economic downturn, especially one affecting our core market areas; |
|
· |
the occurrence of various events that negatively impact the real estate market, since a significant portion of our loan portfolio is secured by real estate; |
|
· |
difficult or unfavorable conditions in the market for financial products and services generally; |
|
· |
interest rate fluctuations, which could have an adverse effect on our profitability; |
|
· |
external economic and/or market factors, such as changes in monetary and fiscal policies and laws, including the interest rate policies of the Board of Governors of the Federal Reserve System, or the Federal Reserve, inflation or deflation, changes in the demand for loans, and fluctuations in consumer spending, borrowing and savings habits, which may have an adverse impact on our financial condition; |
|
· |
continued or increasing competition from other financial institutions, credit unions, and non-bank financial services companies, many of which are subject to different regulations than we are; |
|
· |
costs arising from the environmental risks associated with making loans secured by real estate; |
|
· |
losses resulting from a decline in the credit quality of the assets that we hold; |
|
· |
inadequacies in our allowance for loan losses, which could require us to take a charge to earnings and thereby adversely affect our financial condition; |
|
· |
inaccuracies or changes in the appraised value of real estate securing the loans that we originate, which could lead to losses if the real estate collateral is later foreclosed upon and sold at a price lower than the appraised value; |
|
· |
the costs of integrating the businesses we acquire, which may be greater than expected; |
|
· |
challenges arising from unsuccessful attempts to expand into new geographic markets, products, or services; |
|
· |
a lack of liquidity resulting from decreased loan repayment rates, lower deposit balances, or other factors; |
|
· |
restraints on the ability of Equity Bank to pay dividends to us, which could limit our liquidity; |
|
· |
the loss of our largest loan and depositor relationships; |
|
· |
limitations on our ability to lend and to mitigate the risks associated with our lending activities as a result of our size and capital position; |
|
· |
additional regulatory requirements and restrictions on our business, which could impose additional costs on us; |
|
· |
increased capital requirements imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; |
|
· |
a failure in the internal controls we have implemented to address the risks inherent to the business of banking; |
3
|
· |
inaccuracies in our assumptions about future events, which could result in material differences between our financial projections and actual financial performance; |
|
· |
the departure of key members of our management personnel or our inability to hire qualified management personnel; |
|
· |
disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems; |
|
· |
unauthorized access to nonpublic personal information of our customers, which could expose us to litigation or reputational harm; |
|
· |
disruptions, security breaches, or other adverse events affecting the third-party vendors who perform several of our critical processing functions; |
|
· |
the occurrence of adverse weather or manmade events, which could negatively affect our core markets or disrupt our operations; |
|
· |
an increase in FDIC deposit insurance assessments, which could adversely affect our earnings; |
|
· |
an inability to keep pace with the rate of technological advances due to a lack of resources to invest in new technologies; and |
|
· |
other factors that are discussed in “Risk Factors.” |
The foregoing factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this Quarterly Report. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. 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 we do 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, and it is not possible for us to predict those events or how they may affect us. In addition, we cannot assess the impact of each factor on our 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 Quarterly Report on Form 10-Q 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 we or persons acting on our behalf may issue.
4
EQUITY BANCSHARES, INC.
June 30, 2016 and December 31, 2015
(Dollar amounts in thousands, except per share data)
|
|
(Unaudited) June 30, |
|
|
December 31, |
|
||
|
|
2016 |
|
|
2015 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
25,413 |
|
|
$ |
36,276 |
|
Federal funds sold |
|
|
20,789 |
|
|
|
20,553 |
|
Cash and cash equivalents |
|
|
46,202 |
|
|
|
56,829 |
|
Interest-bearing time deposits in other banks |
|
|
5,245 |
|
|
|
5,245 |
|
Available-for-sale securities |
|
|
74,976 |
|
|
|
130,810 |
|
Held-to-maturity securities, fair value of $324,425 and $312,802 |
|
|
317,509 |
|
|
|
310,539 |
|
Loans held for sale |
|
|
4,002 |
|
|
|
3,504 |
|
Loans, net of allowance for loan losses of $6,030 and $5,506 |
|
|
974,080 |
|
|
|
954,849 |
|
Other real estate owned, net |
|
|
4,898 |
|
|
|
5,811 |
|
Premises and equipment, net |
|
|
39,103 |
|
|
|
39,147 |
|
Bank owned life insurance |
|
|
33,052 |
|
|
|
32,555 |
|
Federal Reserve Bank and Federal Home Loan Bank stock |
|
|
10,875 |
|
|
|
11,013 |
|
Interest receivable |
|
|
4,323 |
|
|
|
4,540 |
|
Goodwill |
|
|
18,130 |
|
|
|
18,130 |
|
Core deposit intangible, net |
|
|
1,376 |
|
|
|
1,549 |
|
Other |
|
|
11,086 |
|
|
|
11,206 |
|
Total assets |
|
$ |
1,544,857 |
|
|
$ |
1,585,727 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
Demand |
|
$ |
157,896 |
|
|
$ |
157,834 |
|
Total non-interest-bearing deposits |
|
|
157,896 |
|
|
|
157,834 |
|
Savings, NOW, and money market |
|
|
595,272 |
|
|
|
619,468 |
|
Time |
|
|
443,599 |
|
|
|
438,612 |
|
Total interest-bearing deposits |
|
|
1,038,871 |
|
|
|
1,058,080 |
|
Total deposits |
|
|
1,196,767 |
|
|
|
1,215,914 |
|
Federal funds purchased and retail repurchase agreements |
|
|
22,782 |
|
|
|
20,762 |
|
Federal Home Loan Bank advances |
|
|
147,648 |
|
|
|
145,439 |
|
Bank stock loan |
|
|
— |
|
|
|
18,612 |
|
Subordinated debentures |
|
|
9,371 |
|
|
|
9,251 |
|
Contractual obligations |
|
|
2,831 |
|
|
|
3,093 |
|
Interest payable and other liabilities |
|
|
7,270 |
|
|
|
5,423 |
|
Total liabilities |
|
|
1,386,669 |
|
|
|
1,418,494 |
|
Commitments and contingent liabilities, see Notes 10 and 11 |
|
|
|
|
|
|
|
|
Stockholders’ equity, see Note 6 |
|
|
|
|
|
|
|
|
Preferred stock, Series C (liquidation preference of $16,372) |
|
|
— |
|
|
|
16,372 |
|
Common stock |
|
|
97 |
|
|
|
97 |
|
Additional paid-in capital |
|
|
138,480 |
|
|
|
138,077 |
|
Retained earnings |
|
|
41,240 |
|
|
|
34,955 |
|
Accumulated other comprehensive loss |
|
|
(1,732 |
) |
|
|
(2,371 |
) |
Employee stock loans |
|
|
(242 |
) |
|
|
(242 |
) |
Treasury stock |
|
|
(19,655 |
) |
|
|
(19,655 |
) |
Total stockholders’ equity |
|
|
158,188 |
|
|
|
167,233 |
|
Total liabilities and stockholders’ equity |
|
$ |
1,544,857 |
|
|
$ |
1,585,727 |
|
See accompanying condensed notes to interim consolidated financial statements.
5
EQUITY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME
For the Three and Six Months ended June 30, 2016 and 2015
(Dollar amounts in thousands, except per share data)
|
|
(Unaudited) Three Months Ended June 30, |
|
|
(Unaudited) Six Months Ended June 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
11,551 |
|
|
$ |
10,737 |
|
|
$ |
23,392 |
|
|
$ |
21,149 |
|
Securities, taxable |
|
|
1,987 |
|
|
|
1,796 |
|
|
|
4,196 |
|
|
|
3,529 |
|
Securities, nontaxable |
|
|
332 |
|
|
|
265 |
|
|
|
660 |
|
|
|
455 |
|
Federal funds sold and other |
|
|
510 |
|
|
|
169 |
|
|
|
994 |
|
|
|
266 |
|
Total interest and dividend income |
|
|
14,380 |
|
|
|
12,967 |
|
|
|
29,242 |
|
|
|
25,399 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
1,670 |
|
|
|
1,090 |
|
|
|
3,277 |
|
|
|
2,126 |
|
Federal funds purchased and retail repurchase agreements |
|
|
14 |
|
|
|
14 |
|
|
|
26 |
|
|
|
30 |
|
Federal Home Loan Bank advances |
|
|
345 |
|
|
|
88 |
|
|
|
677 |
|
|
|
126 |
|
Bank stock loan |
|
|
— |
|
|
|
149 |
|
|
|
— |
|
|
|
300 |
|
Subordinated debentures |
|
|
157 |
|
|
|
160 |
|
|
|
310 |
|
|
|
318 |
|
Total interest expense |
|
|
2,186 |
|
|
|
1,501 |
|
|
|
4,290 |
|
|
|
2,900 |
|
Net interest income |
|
|
12,194 |
|
|
|
11,466 |
|
|
|
24,952 |
|
|
|
22,499 |
|
Provision for loan losses |
|
|
532 |
|
|
|
605 |
|
|
|
1,255 |
|
|
|
1,330 |
|
Net interest income after provision for loan losses |
|
|
11,662 |
|
|
|
10,861 |
|
|
|
23,697 |
|
|
|
21,169 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
807 |
|
|
|
615 |
|
|
|
1,586 |
|
|
|
1,170 |
|
Debit card income |
|
|
728 |
|
|
|
540 |
|
|
|
1,405 |
|
|
|
981 |
|
Mortgage banking |
|
|
335 |
|
|
|
375 |
|
|
|
577 |
|
|
|
578 |
|
Increase in value of bank owned life insurance |
|
|
246 |
|
|
|
231 |
|
|
|
497 |
|
|
|
466 |
|
Net gain from securities transactions |
|
|
59 |
|
|
|
2 |
|
|
|
479 |
|
|
|
370 |
|
Other |
|
|
277 |
|
|
|
285 |
|
|
|
606 |
|
|
|
880 |
|
Total non-interest income |
|
|
2,452 |
|
|
|
2,048 |
|
|
|
5,150 |
|
|
|
4,445 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
5,246 |
|
|
|
4,862 |
|
|
|
10,458 |
|
|
|
9,584 |
|
Net occupancy and equipment |
|
|
1,068 |
|
|
|
1,020 |
|
|
|
2,162 |
|
|
|
2,126 |
|
Data processing |
|
|
869 |
|
|
|
727 |
|
|
|
1,707 |
|
|
|
1,381 |
|
Professional fees |
|
|
568 |
|
|
|
441 |
|
|
|
1,017 |
|
|
|
912 |
|
Advertising and business development |
|
|
330 |
|
|
|
277 |
|
|
|
548 |
|
|
|
568 |
|
Telecommunications |
|
|
287 |
|
|
|
198 |
|
|
|
518 |
|
|
|
379 |
|
FDIC insurance |
|
|
255 |
|
|
|
175 |
|
|
|
513 |
|
|
|
351 |
|
Courier and postage |
|
|
158 |
|
|
|
126 |
|
|
|
303 |
|
|
|
263 |
|
Amortization of core deposit intangible |
|
|
86 |
|
|
|
61 |
|
|
|
173 |
|
|
|
121 |
|
Loan expense |
|
|
168 |
|
|
|
118 |
|
|
|
260 |
|
|
|
178 |
|
Other real estate owned |
|
|
(58 |
) |
|
|
56 |
|
|
|
8 |
|
|
|
121 |
|
Loss on debt extinguishment |
|
|
— |
|
|
|
— |
|
|
|
58 |
|
|
|
316 |
|
Other |
|
|
964 |
|
|
|
966 |
|
|
|
1,905 |
|
|
|
1,745 |
|
Total non-interest expense |
|
|
9,941 |
|
|
|
9,027 |
|
|
|
19,630 |
|
|
|
18,045 |
|
Income before income taxes |
|
|
4,173 |
|
|
|
3,882 |
|
|
|
9,217 |
|
|
|
7,569 |
|
Provision for income taxes |
|
|
1,327 |
|
|
|
1,313 |
|
|
|
2,931 |
|
|
|
2,559 |
|
Net income |
|
|
2,846 |
|
|
|
2,569 |
|
|
|
6,286 |
|
|
|
5,010 |
|
Dividends and discount accretion on preferred stock |
|
|
— |
|
|
|
(43 |
) |
|
|
(1 |
) |
|
|
(86 |
) |
Net income allocable to common stockholders |
|
$ |
2,846 |
|
|
$ |
2,526 |
|
|
$ |
6,285 |
|
|
$ |
4,924 |
|
Basic earnings per share |
|
$ |
0.35 |
|
|
$ |
0.40 |
|
|
$ |
0.77 |
|
|
$ |
0.79 |
|
Diluted earnings per share |
|
$ |
0.34 |
|
|
$ |
0.40 |
|
|
$ |
0.75 |
|
|
$ |
0.78 |
|
See accompanying condensed notes to interim consolidated financial statements.
6
EQUITY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the Three and Six Months ended June 30, 2016 and 2015
(Dollar amounts in thousands)
|
|
(Unaudited) Three Months Ended June 30, |
|
|
(Unaudited) Six Months Ended June 30, |
|
||||||||||
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
||||
Net income |
|
$ |
2,846 |
|
|
$ |
2,569 |
|
|
$ |
6,286 |
|
|
$ |
5,010 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized holding gains (losses) arising during the period on available-for-sale securities |
|
|
425 |
|
|
|
(650 |
) |
|
|
1,633 |
|
|
|
(271 |
) |
Amortization of unrealized losses on held-to-maturity securities |
|
|
152 |
|
|
|
160 |
|
|
|
292 |
|
|
|
423 |
|
Reclassification adjustment for net gains included in net income |
|
|
(473 |
) |
|
|
(2 |
) |
|
|
(893 |
) |
|
|
(370 |
) |
Total other comprehensive income (loss) |
|
|
104 |
|
|
|
(492 |
) |
|
|
1,032 |
|
|
|
(218 |
) |
Tax effect |
|
|
(42 |
) |
|
|
188 |
|
|
|
(393 |
) |
|
|
84 |
|
Other comprehensive income (loss), net of tax |
|
|
62 |
|
|
|
(304 |
) |
|
|
639 |
|
|
|
(134 |
) |
Comprehensive income |
|
$ |
2,908 |
|
|
$ |
2,265 |
|
|
$ |
6,925 |
|
|
$ |
4,876 |
|
See accompanying condensed notes to interim consolidated financial statements.
7
EQUITY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
For the Six Months ended June 30, 2016 and 2015
(Unaudited)
(Dollar amounts in thousands, except per share data)
|
|
Preferred Stock |
|
|
Common Stock |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Series C |
|
|
Shares Outstanding |
|
|
Amount |
|
|
Additional Paid-In Capital |
|
|
Retained Earnings |
|
|
Accumulated Other Comprehensive Income (loss) |
|
|
Employee Stock Loans |
|
|
Treasury Stock |
|
|
Total Stockholders’ Equity |
|
|||||||||
Balance at January 1, 2015 |
|
$ |
16,359 |
|
|
|
6,067,511 |
|
|
$ |
76 |
|
|
$ |
98,398 |
|
|
$ |
24,832 |
|
|
$ |
(2,281 |
) |
|
$ |
— |
|
|
$ |
(19,655 |
) |
|
$ |
117,729 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,010 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,010 |
|
Other comprehensive income, net of tax effects |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(134 |
) |
|
|
— |
|
|
|
— |
|
|
|
(134 |
) |
Accretion of discount on preferred stock |
|
|
4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
216 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
216 |
|
Common stock issued upon termination of restricted stock unit plan, net of employee stock loans |
|
|
— |
|
|
|
203,216 |
|
|
|
2 |
|
|
|
222 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,215 |
) |
|
|
— |
|
|
|
(991 |
) |
Cash dividends declared and accrued on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(82 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(82 |
) |
Balance at June 30, 2015 |
|
$ |
16,363 |
|
|
|
6,270,727 |
|
|
$ |
78 |
|
|
$ |
98,836 |
|
|
$ |
29,756 |
|
|
$ |
(2,415 |
) |
|
$ |
(1,215 |
) |
|
$ |
(19,655 |
) |
|
$ |
121,748 |
|
Balance at January 1, 2016 |
|
$ |
16,372 |
|
|
|
8,211,727 |
|
|
$ |
97 |
|
|
$ |
138,077 |
|
|
$ |
34,955 |
|
|
$ |
(2,371 |
) |
|
$ |
(242 |
) |
|
$ |
(19,655 |
) |
|
$ |
167,233 |
|
Net income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,286 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,286 |
|
Other comprehensive income, net of tax effects |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
639 |
|
|
|
— |
|
|
|
— |
|
|
|
639 |
|
Retirement of preferred stock |
|
|
(16,372 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(16,372 |
) |
Stock based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
282 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
282 |
|
Common stock issued upon exercise of stock options |
|
|
— |
|
|
|
7,688 |
|
|
|
— |
|
|
|
121 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
121 |
|
Cash dividends declared and accrued on preferred stock |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Balance at June 30, 2016 |
|
$ |
— |
|
|
|
8,219,415 |
|
|
$ |
97 |
|
|
$ |
138,480 |
|
|
$ |
41,240 |
|
|
$ |
(1,732 |
) |
|
$ |
(242 |
) |
|
$ |
(19,655 |
) |
|
$ |
158,188 |
|
See accompanying condensed notes to interim consolidated financial statements.
8
EQUITY BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months ended June 30, 2016 and 2015
(Dollar amounts in thousands, except per share data)
|
|
(Unaudited) June 30, |
|
|||||
|
|
2016 |
|
|
2015 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
Net income |
|
$ |
6,286 |
|
|
$ |
5,010 |
|
Adjustments to reconcile net income to net cash from operating activities: |
|
|
|
|
|
|
|
|
Stock based compensation |
|
|
282 |
|
|
|
216 |
|
Depreciation |
|
|
841 |
|
|
|
817 |
|
Provision for loan losses |
|
|
1,255 |
|
|
|
1,330 |
|
Net accretion (amortization) of purchase valuation adjustments |
|
|
192 |
|
|
|
(272 |
) |
Amortization of premiums and discounts on securities |
|
|
1,265 |
|
|
|
1,074 |
|
Amortization of intangibles |
|
|
176 |
|
|
|
121 |
|
Deferred income taxes |
|
|
(34 |
) |
|
|
(57 |
) |
FHLB stock dividends |
|
|
(327 |
) |
|
|
(96 |
) |
Loss (gain) on sales and valuation adjustments on other real estate owned |
|
|
(142 |
) |
|
|
18 |
|
Net loss (gain) on securities transactions |
|
|
(479 |
) |
|
|
(370 |
) |
Loss (gain) on disposal of premise and equipment |
|
(39 |
) |
|
|
(9 |
) |
|
Loss (gain) on sales of loans |
|
|
(496 |
) |
|
|
(492 |
) |
Originations of loans held for sale |
|
|
(21,987 |
) |
|
|
(22,341 |
) |
Proceeds from the sale of loans held for sale |
|
|
21,985 |
|
|
|
21,479 |
|
Increase in the value of bank owned life insurance |
|
|
(497 |
) |
|
|
(466 |
) |
Change in fair value of derivatives recognized in earnings |
|
|
4 |
|
|
|
16 |
|
Net change in: |
|
|
|
|
|
|
|
|
Interest receivable |
|
|
217 |
|
|
|
(389 |
) |
Other assets |
|
|
(314 |
) |
|
|
4 |
|
Interest payable and other liabilities |
|
|
(918 |
) |
|
|
359 |
|
Net cash provided by (used in) operating activities |
|
|
7,270 |
|
|
|
5,952 |
|
Cash flows to investing activities |
|
|
|
|
|
|
|
|
Purchases of available-for-sale securities |
|
|
(25,576 |
) |
|
|
(44,543 |
) |
Purchases of held-to-maturity securities |
|
|
(25,811 |
) |
|
|
(69,064 |
) |
Proceeds from sales, calls, pay-downs, and maturities of available-for-sale securities |
|
|
82,774 |
|
|
|
25,066 |
|
Proceeds from calls, pay-downs and maturities of held-to-maturity securities |
|
|
19,677 |
|
|
|
23,419 |
|
Net change in interest-bearing time deposits in other banks |
|
― |
|
|
|
250 |
|
|
Net change in loans |
|
|
(21,038 |
) |
|
|
(107,860 |
) |
Purchase of premises and equipment |
|
|
(863 |
) |
|
|
(5,117 |
) |
Proceeds from sale of premise and equipment |
|
175 |
|
|
|
15 |
|
|
Net redemption (purchase) of FHLB and FRB stock |
|
|
465 |
|
|
|
(6,555 |
) |
Proceeds from sale of other real estate owned |
|
|
2,391 |
|
|
|
538 |
|
Net cash provided by (used in) investing activities |
|
|
32,194 |
|
|
|
(183,851 |
) |
Cash flows (to) from financing activities |
|
|
|
|
|
|
|
|
Net increase (decrease) in deposits |
|
|
(19,153 |
) |
|
|