eqbk-8k_20190422.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 22, 2019

 

EQUITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

Kansas

001-37624

72-1532188

(State or other jurisdiction of

incorporation or organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

7701 East Kellogg Drive, Suite 300

Wichita, KS

 

 

67207

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: 316.612.6000

 

Former name or former address, if changed since last report: Not Applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

1


Item 2.02Results of Operations and Financial Condition.

 

On April 22, 2019, Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2019.  A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.

 

The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

Item 7.01Regulation FD Disclosure.

 

The Company intends to hold an investor call and webcast to discuss its financial results for the quarter ended March 31, 2019 on Tuesday, April 23, 2019, at 9:00 a.m. Central Time.  The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the quarter ended March 31, 2019 and is furnished as Exhibit 99.2 and is incorporated by reference herein.

 

The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

Item 8.01Other Events.

 

On April 18, 2019, the Company’s Board of Directors authorized the repurchase of up to 1.1 million shares of the Company’s Class A Voting Common Stock, par value $0.01 per share, from time to time, beginning April 29, 2019 and concluding October 30, 2020.  The Company may repurchase shares in privately negotiated transactions, in the open market, including pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 promulgated by the Securities and Exchange Commission, or otherwise in a manner that complies with applicable federal securities laws.  The repurchase program does not obligate the Company to acquire a specific dollar amount or number of shares and it may be extended, modified or discontinued at any time without notice.

 

Item 9.01Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.

 

Description

99.1

 

Earnings Press Release, dated April 22, 2019

99.2

 

Equity Bancshares, Inc. Investor Presentation

 

 

 

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Equity Bancshares, Inc.

 

 

Date:  April 22, 2019

By: /s/ Gregory H. Kossover

 

Gregory H. Kossover

 

Executive Vice President and Chief Financial Officer


3

eqbk-ex991_10.htm

 

Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

Equity Bancshares, Inc. Announces First Quarter Results,

Completes Acquisition of 3 Bank Locations, Revamps Online Banking Platform,

Announces Stock Repurchase Plan and Launches Equity Trust & Wealth Management with Officers in Kansas, Missouri and Oklahoma

 

WICHITA, Kansas, April 22, 2019 (GLOBE NEWSWIRE) – Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “we”, “us”, “our”), the Wichita-based holding company of Equity Bank, reported its unaudited results for the quarter ended March 31, 2019, including net loss allocable to common stockholders of $4.1 million, or $0.26 per diluted share.

 

“In the first quarter our teams deserve credit for successfully upgrading our footprint, our customer experience, and expanding our service capabilities,” said Brad Elliott, Chairman and CEO of Equity.  “We’re pleased to add additional markets in Oklahoma that supplement our Southwest Kansas and Guymon markets.  Our Equity Trust & Wealth Management brand provides another set of financial products that appeal to customers throughout our markets, and we believe our new Equity Bank online banking solution is best in class for banking.  Throughout 2019, these key additions and improvements to our platform will yield additional opportunities for organic growth, business banking, and community banking.  As we continue to review merger opportunities, upgrades and innovations will help us become the bank of choice throughout our four states and beyond.  

 

“In the first quarter, we recorded a $14.5 million provision for loss against a credit relationship.  We will discuss this on our earnings call Tuesday, April 23, 2019.  However, it is important for us to convey we do not believe this represents a systemic trend; rather an isolated individual relationship which is unique to our portfolio.”

 

On April 18, 2019, the Board of Directors of Equity Bancshares, Inc. authorized the repurchase of up to 1,100,000 shares of our Class A Voting Common Stock, par value $0.01 per share, from time to time, beginning April 29, 2019 and concluding October 30, 2020.  The repurchase program does not obligate us to acquire a specific dollar amount or number of shares and it may be extended, modified or discontinued at any time without notice and is subject to no objection from the Federal Reserve Bank.

 

On February 8, 2019, Equity completed its acquisition of two bank locations in Guymon, Oklahoma, and one bank location in Cordell, Oklahoma, from MidFirst Bank of Oklahoma City, Oklahoma (“MidFirst”).  The acquisition added total assets of $98.6 million, which included total loans of $6.5 million.  There were total deposits of $98.5 million assumed at the time of the acquisition.  Results of operations of the MidFirst acquisition are included in Equity’s 2019 results of operations subsequent to the acquisition.

 

Notable Items:

 

 

Net loss before taxes for the first quarter of 2019 was $5.2 million, or $0.33 per diluted share, compared to net income before taxes of $11.2 million, or $0.75 per diluted share, for the same time period in 2018.  Net loss before taxes, adjusted to exclude merger expense, was $4.6 million, or $0.29 per diluted share, for the first quarter of 2019, compared to net income before taxes, adjusted to exclude merger expense of $11.8 million, or $0.79 per diluted share, for the first quarter of 2018.

 

Stated diluted loss per share in the first quarter of 2019 was $0.26.  Merger expenses, adjusted for estimated income tax, were $487 thousand in the first quarter of 2019, or $0.03 per diluted share. 

 

Net loss allocable to common stockholders, adjusted for the identified specific provision, results in $7.2 million of net income allocable to common stockholders, or $0.45 per diluted share in the first quarter of 2019, compared to 2018 first quarter net income allocable to common stockholders of $8.7 million, or $0.58 per diluted share.

 

Net loss allocable to common stockholders, adjusted for identified specific provision and merger expense, results in $7.7 million of net income allocable to common stockholders, or $0.48 per diluted share in the first quarter of 2019, compared to 2018 first quarter net income allocable to common stockholders, adjusted for merger expenses of $9.1 million, or $0.61 per diluted share.


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

 

Highlights of Equity’s growth include:

 

 

Total loans held for investment of $2.62 billion at March 31, 2019, as compared to total loans held for investment of $2.58 billion at December 31, 2018.  The increase of $43.6 million includes organic growth of $37.1 million, or 1.4%, and $6.5 million of loans added in the MidFirst acquisition.

 

Total deposits were $3.26 billion at March 31, 2019 compared to $3.12 billion at December 31, 2018.  Signature deposits, including core deposits comprised of checking accounts, savings accounts and money market accounts, were $2.22 billion at March 31, 2019, compared to $2.12 billion at December 31, 2018.  Organic signature deposit growth was 2.7% for the quarter.  In addition, the MidFirst acquisition added total deposits of $98.5 million.

 

Total assets of $4.07 billion at March 31, 2019, compared to $4.06 billion at December 31, 2018.  The MidFirst acquisition added total assets of $98.6 million.

 

Book value per common share of $28.66 at March 31, 2019 and $28.87 at December 31, 2018. Tangible book value per common share of $18.55 at March 31, 2019 and $19.08 at December 31, 2018.

 

Financial Results for Quarter Ended March 31, 2019

 

 

Net loss allocable to common stockholders was $4.1 million for the three months ended March 31, 2019, as compared to a net income allocable to common stockholders of $8.7 million for the three months ended March 31, 2018, a decrease of $12.8 million, principally related to the non-typical specific impairment.

 

Diluted loss per share was $0.26 for the three months ended March 31, 2019, as compared to diluted income per share of $0.58 for the comparable period of 2018.  Weighted average common shares were 15,804,508 and 14,611,379 for the three months ended March 31, 2019 and 2018.  Weighted average fully diluted shares were 16,066,700 and 14,894,180 for the three months ended March 31, 2019 and 2018.  The increase in weighted average fully diluted shares reflects the issuance of 1,164,912 shares in connection with Equity’s May 2018 mergers with Kansas Bank Corporation (“KBC”), based in Liberal, Kansas and Adams Dairy Bancshares, Inc. (“Adams”), based in Blue Springs, Missouri.

 

Net interest income was $30.6 million for the three months ended March 31, 2019, as compared to $27.8 million for the three months ended March 31, 2018, a $2.9 million, or 10.3% increase.  The additional net interest income was primarily driven by growth in loans and securities balances and, to a lesser extent, an increase in average yield on loans, partially offset by an increase in interest expense as we funded the growth in earning assets with more deposits and borrowings and an overall increase in the average cost of funds.

 

Our net interest margin was 3.49% for the three months ended March 31, 2019, as compared to 3.91% for the three months ended March 31, 2018.  The decrease in net interest margin was partly due to a reduction in loan fees, additional callable bond premium amortization and the movement to nonaccrual related to a large credit relationship.  Also, our cost of funds has increased primarily due to both retail and public fund deposits.  The cost of retail deposits have increased as the general level of interest rates have risen and from an increased level of market competition for this type of deposit, which are desirable due to their lower level of interest-rate sensitivity.  The cost of public fund deposits have increased due to the level of competition for these deposits, from both other financial institutions and state investment funds, and due to the timing of the investment of these funds in an elevated interest rate environment.

 

The provision for loan losses was $15.6 million for the three months ended March 31, 2019, reflecting the non-typical specific impairment.  The provision for loan losses was $1.2 million for the three months ended March 31, 2018.  For the three months ended March 31, 2019, we had net charge-offs of $760 thousand, as compared to net charge-offs of $352 thousand for the same period in 2018.

 

Total non-interest income for the quarter ended March 31, 2019 was $5.3 million, compared to $4.3 million for the quarter ended March 31, 2018.  Increases in service charges and fees and debit card income are principally


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

attributable to the addition of accounts and higher transaction volumes associated with the KBC and Adams mergers.  There were also additional accounts and higher transaction volumes associated with the August 2018 acquisition of City Bank and Trust Company (“City Bank”), based in Guymon, Oklahoma, and the February 2019 acquisition of three MidFirst branches.  Non-interest income includes the increase in value of bank-owned life insurance of $488 thousand and $652 thousand for the three-month periods ended March 31, 2019 and 2018.

 

Total non-interest expense was $25.5 million for the quarter ended March 31, 2019, compared to $19.6 million for the quarter ended March 31, 2018.  These results reflect the effect of the May 2018 addition of five locations in southwest Kansas plus one location in Blue Springs, Missouri; the August 2018 addition of one location in Guymon, Oklahoma; and the February 2019 acquisition of two additional locations in Guymon, Oklahoma, and one location in Cordell, Oklahoma.  In addition, the results reflect added lending, customer service, corporate and operations staff indirectly attributable to mergers and organic growth and increased data processing costs due to more accounts, higher transaction volumes and our new online banking platform and trust and wealth management infrastructure.  Non-interest expense also includes merger expenses of $639 thousand ($487 thousand after tax) for the three months ended March 31, 2019.  Merger expenses for the three months ended March 31, 2018, totaled $531 thousand ($436 thousand after tax).

 

Equity’s effective tax rate for the quarter ended March 31, 2019 was 22.1% as compared to 22.5% for the quarter ended March 31, 2018.  For both of the comparable periods, the estimated annual effective tax rate at which income tax expense (benefits) have been provided reflect, in addition to statutory tax rates, the levels of tax-exempt interest income, non-taxable life insurance income, non-deductible facilitative merger expense and other non-deductible expense in proportion to anticipated annual income before income taxes, as well as federal income tax credits anticipated to be available in each annual period.

 

Loans, Deposits and Total Assets

 

Loans held for investment were $2.62 billion at March 31, 2019, as compared to $2.58 billion at December 31, 2018, an increase of $43.6 million.  The increase in loans held for investment includes $6.5 million of net loans acquired in the February 2019 MidFirst acquisition plus $37.1 million of organic loan growth.

 

As of March 31, 2019, Equity’s allowance for loan losses to total loans was 1.01%, as compared to 0.44% at December 31, 2018.  Total reserves, including purchase discounts, to total loans were approximately 1.53% as of March 31, 2019, as compared to 1.02% at December 31, 2018.  Nonperforming assets of $73.0 million as of March 31, 2019, were 1.80% of total assets.  Nonperforming assets at December 31, 2018, were $39.6 million or 0.97% of total assets.

 

Total deposits were $3.26 billion at March 31, 2019, as compared to $3.12 billion at December 31, 2018.  Total deposits increased $137.4 million between December 31, 2018 and March 31, 2019.  This increase included $98.5 million assumed in the MidFirst acquisition and $38.9 million in organic growth. Signature deposits were $2.22 billion at March 31, 2019, as compared to $2.12 billion at December 31, 2018.

 

At March 31, 2019, Equity had consolidated total assets of $4.07 billion, as compared to $4.06 billion at December 31, 2018, an increase of $3.6 million.  The increase in total assets includes $98.6 million of total assets acquired in the MidFirst acquisition.

 

Borrowings and Capital

 

At March 31, 2019, borrowings totaled $331.2 million, as compared to $464.7 million at December 31, 2018.  The decrease in borrowings was principally due to a $119.9 million pay down in Federal Home Loan Bank advances, largely from growth in deposits, and a $7.0 million pay down on the bank stock loan.

 

At March 31, 2019, common stockholders’ equity totaled $453.5 million, $28.66 per common share, compared to $455.9 million, $28.87 per common share, at December 31, 2018.  Tangible common equity was $293.5 million and tangible book value per common share was $18.55 at March 31, 2019.  Tangible common equity was $301.3 million


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

and tangible book value per common share was $19.08 at December 31, 2018.  The ratio of common equity tier 1 capital to risk-weighted assets was approximately 10.46% and the total capital to risk-weighted assets was approximately 11.87% at March 31, 2019.

 

Non-GAAP Financial Measures

 

This press release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

 

Conference Call and Webcast

 

Equity Chairman and Chief Executive Officer, Brad Elliott, and Chief Financial Officer, Greg Kossover, will hold a conference call and webcast to discuss first quarter 2019 results on Tuesday, April 23, 2019 at 10 a.m. eastern time, 9:00 a.m. central time.

 

Investors, news media and other participants should register for the call or audio webcast at investor.equitybank.com. On Tuesday, April 23, 2019, participants may also dial into the call toll-free at (844) 534-7311 from anywhere in the U.S. or (574) 990-1419 internationally, using conference ID no. 8667358.

 

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

 

A replay of the call and webcast will be available two hours following the close of the call until April 30, 2019, accessible at (855) 859-2056 with conference ID no. 8667358 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.

 

No Offer or Solicitation

 

This press release shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirement of Section 10 of the Securities Act of 1933, as amended.

 

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


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

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 20, 2019 and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, 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.

 

 

Media Contact:

 

John J. Hanley

SVP, Director of Marketing

Equity Bancshares, Inc.

(816) 505-4063

jhanley@equitybank.com

 

 

Investor Contact:

 

Jacob Willis

Investor Relations Officer

Equity Bancshares, Inc.

(316) 779-1675

jwillis@equitybank.com

 

 

 

Unaudited Financial Tables

 

Table 1. Selected Financial Highlights

 

Table 2. Quarterly Analysis of Changes in Net Interest Income

 

Table 3. Consolidated Balance Sheets

 

Table 4. Consolidated Statements of Income

 

Table 5. Non-GAAP Financial Measures



 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

TABLE 1. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

(Dollars in thousands, except per share data)

 

 

As of and for the three months ended

 

 

 

March 31,

 

 

December 31,

 

 

September 30,

 

 

June 30,

 

 

March 31,

 

 

 

2019

 

 

2018

 

 

2018

 

 

2018

 

 

2018

 

Statement of Income Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

30,639

 

 

$

33,336

 

 

$

32,755

 

 

$

30,920

 

 

$

27,787

 

Provision for loan losses

 

 

15,646

 

 

 

750

 

 

 

1,291

 

 

 

750

 

 

 

1,170

 

Net gains (losses) from securities transactions

 

 

6

 

 

 

5

 

 

 

(4

)

 

 

(2

)

 

 

(8

)

Other non-interest income

 

 

5,318

 

 

 

5,444

 

 

 

5,437

 

 

 

4,594

 

 

 

4,259

 

Total non-interest income

 

 

5,324

 

 

 

5,449

 

 

 

5,433

 

 

 

4,592

 

 

 

4,251

 

Merger expense

 

 

639

 

 

 

938

 

 

 

757

 

 

 

5,236

 

 

 

531

 

Other non-interest expense

 

 

24,904

 

 

 

24,200

 

 

 

22,890

 

 

 

20,739

 

 

 

19,096

 

Total non-interest expense

 

 

25,543

 

 

 

25,138

 

 

 

23,647

 

 

 

25,975

 

 

 

19,627

 

Income (loss) before income taxes

 

 

(5,226

)

 

 

12,897

 

 

 

13,250

 

 

 

8,787

 

 

 

11,241

 

Provision for income taxes (benefits)

 

 

(1,153

)

 

 

2,972

 

 

 

2,928

 

 

 

1,920

 

 

 

2,530

 

Net income (loss)

 

 

(4,073

)

 

 

9,925

 

 

 

10,322

 

 

 

6,867

 

 

 

8,711

 

Net income (loss) allocable to common stockholders

 

 

(4,073

)

 

 

9,925

 

 

 

10,322

 

 

 

6,867

 

 

 

8,711

 

Basic earnings (loss) per share

 

 

(0.26

)

 

 

0.63

 

 

 

0.65

 

 

 

0.45

 

 

 

0.60

 

Diluted earnings (loss) per share

 

 

(0.26

)

 

 

0.62

 

 

 

0.64

 

 

 

0.44

 

 

 

0.58

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data (at period end)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

$

166,355

 

 

$

168,875

 

 

$

172,388

 

 

$

180,238

 

 

$

174,717

 

Held-to-maturity securities

 

 

749,493

 

 

 

748,356

 

 

 

713,899

 

 

 

665,995

 

 

 

522,021

 

Gross loans held for investment

 

 

2,618,986

 

 

 

2,575,408

 

 

 

2,598,729

 

 

 

2,451,772

 

 

 

2,134,596

 

Allowance for loan losses

 

 

26,340

 

 

 

11,454

 

 

 

11,010

 

 

 

10,083

 

 

 

9,316

 

Intangible assets, net

 

 

159,944

 

 

 

154,665

 

 

 

155,430

 

 

 

146,538

 

 

 

115,032

 

Total assets

 

 

4,065,354

 

 

 

4,061,716

 

 

 

3,931,036

 

 

 

3,712,185

 

 

 

3,176,062

 

Total deposits

 

 

3,260,870

 

 

 

3,123,447

 

 

 

2,821,246

 

 

 

2,635,048

 

 

 

2,368,297

 

Non-time deposits

 

 

2,220,110

 

 

 

2,115,541

 

 

 

1,969,715

 

 

 

1,829,902

 

 

 

1,647,105

 

Borrowings

 

 

331,221

 

 

 

464,676

 

 

 

652,755

 

 

 

631,501

 

 

 

414,415

 

Total liabilities

 

 

3,611,891

 

 

 

3,605,775

 

 

 

3,487,799

 

 

 

3,278,903

 

 

 

2,794,575

 

Total stockholders’ equity

 

 

453,463

 

 

 

455,941

 

 

 

443,237

 

 

 

433,282

 

 

 

381,487

 

Tangible common equity*

 

 

293,519

 

 

 

301,276

 

 

 

287,807

 

 

 

286,744

 

 

 

266,455

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Data (quarterly average)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

918,804

 

 

$

893,642

 

 

$

860,940

 

 

$

767,038

 

 

$

699,055

 

Total gross loans receivable

 

 

2,560,030

 

 

 

2,590,610

 

 

 

2,516,833

 

 

 

2,317,071

 

 

 

2,122,973

 

Interest-earnings assets

 

 

3,560,815

 

 

 

3,578,487

 

 

 

3,457,871

 

 

 

3,158,187

 

 

 

2,883,960

 

Total assets

 

 

3,926,359

 

 

 

3,935,722

 

 

 

3,804,114

 

 

 

3,475,786

 

 

 

3,169,131

 

Interest-bearing deposits

 

 

2,709,596

 

 

 

2,501,227

 

 

 

2,251,937

 

 

 

2,148,361

 

 

 

2,043,784

 

Borrowings

 

 

269,492

 

 

 

480,417

 

 

 

642,575

 

 

 

495,558

 

 

 

389,120

 

Total interest-bearing liabilities

 

 

2,979,088

 

 

 

2,981,644

 

 

 

2,894,512

 

 

 

2,643,919

 

 

 

2,432,904

 

Total deposits

 

 

3,178,164

 

 

 

2,991,657

 

 

 

2,709,741

 

 

 

2,556,982

 

 

 

2,390,648

 

Total liabilities

 

 

3,466,646

 

 

 

3,486,272

 

 

 

3,364,343

 

 

 

3,062,312

 

 

 

2,791,236

 

Total stockholders' equity

 

 

459,713

 

 

 

449,450

 

 

 

439,771

 

 

 

413,474

 

 

 

377,895

 

Tangible common equity*

 

 

302,398

 

 

 

294,506

 

 

 

289,515

 

 

 

279,328

 

 

 

261,261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA) annualized

 

 

(0.42

)%

 

 

1.00

%

 

 

1.08

%

 

 

0.79

%

 

 

1.11

%

Return on average equity (ROAE) annualized

 

 

(3.59

)%

 

 

8.76

%

 

 

9.31

%

 

 

6.66

%

 

 

9.35

%

Return on average tangible common equity (ROATCE) annualized*

 

 

(4.62

)%

 

 

14.17

%

 

 

14.91

%

 

 

10.58

%

 

 

14.01

%

Yield on loans annualized

 

 

5.79

%

 

 

5.91

%

 

 

5.73

%

 

 

5.73

%

 

 

5.55

%

Cost of interest-bearing deposits annualized

 

 

1.61

%

 

 

1.45

%

 

 

1.15

%

 

 

1.00

%

 

 

0.94

%

Cost of total deposits annualized

 

 

1.37

%

 

 

1.21

%

 

 

0.95

%

 

 

0.84

%

 

 

0.80

%

Net interest margin annualized

 

 

3.49

%

 

 

3.70

%

 

 

3.76

%

 

 

3.93

%

 

 

3.91

%

Efficiency ratio*

 

 

69.26

%

 

 

62.40

%

 

 

59.93

%

 

 

58.40

%

 

 

59.59

%

Non-interest income / average assets

 

 

0.55

%

 

 

0.55

%

 

 

0.57

%

 

 

0.53

%

 

 

0.54

%

Non-interest expense / average assets

 

 

2.64

%

 

 

2.53

%

 

 

2.47

%

 

 

3.00

%

 

 

2.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 Leverage Ratio

 

 

8.36

%

 

 

8.60

%

 

 

8.60

%

 

 

9.36

%

 

 

9.45

%

Common Equity Tier 1 Capital Ratio

 

 

10.46

%

 

 

10.95

%

 

 

10.49

%

 

 

11.04

%

 

 

11.78

%

Tier 1 Risk Based Capital Ratio

 

 

10.95

%

 

 

11.45

%

 

 

11.00

%

 

 

11.56

%

 

 

12.38

%

Total Risk Based Capital Ratio

 

 

11.87

%

 

 

11.86

%

 

 

11.37

%

 

 

11.94

%

 

 

12.78

%

Total stockholders' equity to total assets

 

 

11.15

%

 

 

11.23

%

 

 

11.28

%

 

 

11.67

%

 

 

12.01

%

Tangible common equity to tangible assets*

 

 

7.52

%

 

 

7.71

%

 

 

7.62

%

 

 

8.04

%

 

 

8.70

%

Book value per common share

 

$

28.66

 

 

$

28.87

 

 

$

28.07

 

 

$

27.44

 

 

$

26.09

 

Tangible book value per common share*

 

$

18.55

 

 

$

19.08

 

 

$

18.22

 

 

$

18.16

 

 

$

18.22

 

Tangible book value per diluted common share*

 

$

18.30

 

 

$

18.73

 

 

$

17.86

 

 

$

17.78

 

 

$

17.85

 

 

* The value noted is considered a Non-GAAP financial measure.  For a reconciliation of Non-GAAP financial measures, see Table 5. Non-GAAP Financial Measures


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

TABLE 2. QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST INCOME (Unaudited)

(Dollars in thousands)

 

 

Quarter ended 03/31/2019

 

 

Quarter ended 03/31/2018

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average Yield/ Rate (3) (4)

 

 

Average Outstanding Balance

 

 

Interest Income/ Expense

 

 

Average Yield/ Rate (3) (4)

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans (1)

$

2,560,030

 

 

$

36,533

 

 

 

5.79

%

 

$

2,122,973

 

 

$

29,048

 

 

 

5.55

%

Total securities

 

918,804

 

 

 

6,035

 

 

 

2.66

%

 

 

699,055

 

 

 

4,602

 

 

 

2.67

%

Federal funds sold and other

 

81,981

 

 

 

634

 

 

 

3.14

%

 

 

61,932

 

 

 

473

 

 

 

3.10

%

Total interest-earning assets

 

3,560,815

 

 

 

43,202

 

 

 

4.92

%

 

 

2,883,960

 

 

 

34,123

 

 

 

4.80

%

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing demand and savings

 

1,693,227

 

 

 

5,667

 

 

 

1.36

%

 

 

1,270,968

 

 

 

2,223

 

 

 

0.71

%

Certificates of deposit

 

1,016,369

 

 

 

5,063

 

 

 

2.02

%

 

 

772,816

 

 

 

2,495

 

 

 

1.31

%

     Total interest-bearing deposits

 

2,709,596

 

 

 

10,730

 

 

 

1.61

%

 

 

2,043,784

 

 

 

4,718

 

 

 

0.94

%

FHLB advances & LOC

 

197,610

 

 

 

1,305

 

 

 

2.68

%

 

 

332,438

 

 

 

1,299

 

 

 

1.59

%

Other borrowings

 

71,882

 

 

 

528

 

 

 

2.98

%

 

 

56,682

 

 

 

319

 

 

 

2.28

%

Total interest-bearing liabilities

 

2,979,088

 

 

 

12,563

 

 

 

1.71

%

 

 

2,432,904

 

 

 

6,336

 

 

 

1.06

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

30,639

 

 

 

 

 

 

 

 

 

 

$

27,787

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

 

 

 

 

3.74

%

Net interest margin (2)

 

 

 

 

 

 

 

 

 

3.49

%

 

 

 

 

 

 

 

 

 

 

3.91

%

(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.

 

 

 

 

For the three months ended

 

 

March 31, 2019 vs. 2018

 

 

Total Increase/(Decrease)

 

 

Volume Variance (1)

 

 

Yield/Rate Variance (1)

 

 

Total Variance

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

Loans

$

6,193

 

 

$

1,292

 

 

$

7,485

 

Total securities

 

1,449

 

 

 

(16

)

 

 

1,433

 

Federal funds sold and other

 

155

 

 

 

6

 

 

 

161

 

Total interest-earning assets

 

7,797

 

 

 

1,282

 

 

 

9,079

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing demand and savings

 

916

 

 

 

2,528

 

 

 

3,444

 

Certificates of deposit

 

943

 

 

 

1,625

 

 

 

2,568

 

     Total interest-bearing deposits

 

1,859

 

 

 

4,153

 

 

 

6,012

 

FHLB advances & LOC

 

(661

)

 

 

667

 

 

 

6

 

Other borrowings

 

138

 

 

 

71

 

 

 

209

 

Total interest-bearing liabilities

 

1,336

 

 

 

4,891

 

 

 

6,227

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

6,461

 

 

$

(3,609

)

 

$

2,852

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) The effect of changes in volume is determined by multiplying the change in volume by the previous year's average rate. Similarly, the effect of rate changes is calculated by multiplying the change in average rate by the prior year's volume. The changes attributable to both volume and rate, which cannot be segregated, have been allocated to the volume variance and the rate variance in proportion to the relationship of the absolute dollar amount of the change in each.

 


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

 

 

March 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

167,016

 

 

$

192,735

 

Federal funds sold

 

 

437

 

 

 

83

 

Cash and cash equivalents

 

 

167,453

 

 

 

192,818

 

Interest-bearing time deposits in other banks

 

 

4,742

 

 

 

4,991

 

Available-for-sale securities

 

 

166,355

 

 

 

168,875

 

Held-to-maturity securities, fair value of $752,207 and $739,989

 

 

749,493

 

 

 

748,356

 

Loans held for sale

 

 

2,140

 

 

 

2,972

 

Loans, net of allowance for loan losses of $26,340 and $11,454

 

 

2,592,646

 

 

 

2,563,954

 

Other real estate owned, net

 

 

6,382

 

 

 

6,372

 

Premises and equipment, net

 

 

81,496

 

 

 

80,442

 

Bank-owned life insurance

 

 

73,594

 

 

 

73,105

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

22,569

 

 

 

29,214

 

Interest receivable

 

 

16,423

 

 

 

17,372

 

Goodwill

 

 

136,432

 

 

 

131,712

 

Core deposit intangibles, net

 

 

22,296

 

 

 

21,725

 

Other

 

 

23,333

 

 

 

19,808

 

Total assets

 

$

4,065,354

 

 

$

4,061,716

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Demand

 

$

483,107

 

 

$

503,831

 

Total non-interest-bearing deposits

 

 

483,107

 

 

 

503,831

 

Savings, NOW and money market

 

 

1,737,003

 

 

 

1,611,710

 

Time

 

 

1,040,760

 

 

 

1,007,906

 

Total interest-bearing deposits

 

 

2,777,763

 

 

 

2,619,616

 

Total deposits

 

 

3,260,870

 

 

 

3,123,447

 

Federal funds purchased and retail repurchase agreements

 

 

43,433

 

 

 

50,068

 

Federal Home Loan Bank advances

 

 

264,954

 

 

 

384,898

 

Bank stock loan

 

 

8,500

 

 

 

15,450

 

Subordinated debentures

 

 

14,334

 

 

 

14,260

 

Contractual obligations

 

 

3,964

 

 

 

3,965

 

Interest payable and other liabilities

 

 

15,836

 

 

 

13,687

 

Total liabilities

 

 

3,611,891

 

 

 

3,605,775

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Common stock

 

 

173

 

 

 

173

 

Additional paid-in capital

 

 

379,931

 

 

 

379,085

 

Retained earnings

 

 

95,868

 

 

 

101,326

 

Accumulated other comprehensive loss

 

 

(2,767

)

 

 

(4,867

)

Employee stock loans

 

 

(87

)

 

 

(121

)

Treasury stock

 

 

(19,655

)

 

 

(19,655

)

Total stockholders’ equity

 

 

453,463

 

 

 

455,941

 

Total liabilities and stockholders’ equity

 

$

4,065,354

 

 

$

4,061,716

 

 

 

 

 

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/22/2019

TABLE 4. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)