eqbk-8k_20200429.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 29, 2020

 

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))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Class A, Common Stock, par value $0.01 per share

Trading Symbol

EQBK

Name of each exchange on which registered

The Nasdaq Stock Market LLC

 

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 2.02 Results of Operations and Financial Condition.

 

On April 29, 2020, Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2020.  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 7.01 Regulation FD Disclosure.

 

The Company intends to hold an investor call and webcast to discuss its financial results for the first quarter ended March 31, 2020 on Thursday, April 30, 2020, 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 first quarter ended March 31, 2020 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 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.

 

Description

99.1

 

Earnings Press Release, dated April 29, 2020

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 29, 2020

By: /s/ Gregory H. Kossover

 

Gregory H. Kossover

 

Executive Vice President and Chief Financial Officer


3

eqbk-ex991_6.htm

 

Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 04/29/2020

Equity Bancshares, Inc. Announces First Quarter Earnings of $0.08

per Diluted Common Share and Net Income of $1.3 Million

Company reports net interest margin expansion in first quarter; provision for loan losses of $9.9 million or 85% of pre-tax income; and enters COVID-19 era with strong PPP lending for local businesses

 

WICHITA, Kansas, April 29, 2020 (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 first quarter ended March 31, 2020, including net income allocable to common stockholders of $1.3 million, or $0.08 per diluted share.

 

“Our first quarter 2020 results exceeded our expectations on a pre-loan loss provision basis,” said Brad Elliott, Chairman and CEO of Equity. “We were able to increase our net interest margin by moving swiftly to lower our cost of liabilities in the quarter.  In this COVID-19 environment we believe the prudent course of action, at this point, is to provide reserves for the unknown, which we did with a $9.9 million provision for loan losses.”

 

Equity completed over 1,600 Small Business Administration (“SBA”) loan applications through phase one of the Paycheck Protection Program (“PPP”) as part of the U.S. Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) signed into law on March 27, 2020.  The relief from Equity-administered loans helped more than 78,000 employees working in small businesses throughout Equity’s regions in Kansas, Missouri, Oklahoma and Arkansas.

 

Equity moved its branch operations to a “Branch Light, Drive Through First” model beginning on March 16, 2020 sequentially throughout its markets.  The Company continued to provide full service through its drive-through banking teams and offered lobby access to commercial, mortgage and consumer customers upon request.  Equity saw a 7% monthly increase in digital transactions, including bill payments, mobile deposits and transfers in March 2020, and a 9% monthly increase in total logins.

 

“In our first quarter, I’m proud of our collective efforts as a company to continue to deliver outstanding service to our customers while helping them manage through an unprecedented crisis,” said Mr. Elliott. “It’s critical for us to fulfill a leadership role in our communities, helping local businesses to continue to operate.  I am proud of our Equity Bank team members and their commitment to our communities, which is key to our success as a company.  Our bankers were front-and-center to businesses in need and our credit administration and loan processing teams have worked efficiently and swiftly to ensure our customers have uninterrupted services.”

 

Notable Items:

 

 

Net income before taxes for the first quarter of 2020 was $1.7 million, or $0.11 per diluted share, compared to a net loss before taxes of $5.2 million, or $0.33 per diluted share, for the same time period in 2019.  There were no merger expenses in the first quarter of 2020.  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.

 

Stated diluted income per share in the first quarter of 2020 was $0.08, as compared to $(0.26) in the first quarter of 2019.  Income before taxes and provision for loan losses during the periods ending March 31, 2020 and 2019, was $11.6 million and $10.4 million.

 

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.  There was a total of 295,461 shares repurchased during the first quarter of 2020 at a weighted average price of $23.33.  In March, in response to the COVID-19 environment, the Board of Directors of Equity Bancshares voted to temporarily suspend the repurchase program.  A total of 383,523 shares remain authorized for repurchase.

 

The CARES Act provided temporary relief for the implementation of Accounting Standards Update No. 2016-13, Measurement of Credit Losses on Financial Instruments and the Company has elected to calculate the required allowance for loan losses and the resulting provision for loan losses using the prior probable-incurred-loss method.


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/29/2020

 

Equity’s Balance Sheet Highlights:

 

 

Total loans held for investment of $2.51 billion at March 31, 2020, as compared to total loans held for investment of $2.56 billion at December 31, 2019.

 

Total deposits were $2.96 billion at March 31, 2020, as compared to $3.06 billion at December 31, 2019.  Signature deposits, including core deposits comprised of checking, savings and money market accounts, were $2.18 billion at March 31, 2020, as compared to $2.23 billion at December 31, 2019.

 

Total assets were $3.94 billion at March 31, 2020, as compared to $3.95 billion at December 31, 2019.

 

Book value per common share was $31.41 at March 31, 2020, as compared to $30.95 at December 31, 2019. Tangible book value per common share was $21.10 at March 31, 2020, as compared to $20.75 at December 31, 2019.

 

Financial Results for the Quarter Ended March 31, 2020

 

Net income allocable to common stockholders was $1.3 million for the three months ended March 31, 2020, as compared to net loss allocable to common stockholders of $4.1 million for the three months ended March 31, 2019, an increase of $5.3 million.

 

Diluted earnings per share were $0.08 for the three months ended March 31, 2020, as compared to a loss per share of $0.26 for the comparable period in 2019.  Weighted average fully diluted shares were 15,595,024 and 15,804,508 for the three months ended March 31, 2020 and 2019.

 

Net interest income was $32.1 million for the three months ended March 31, 2020, as compared to $30.6 million for the three months ended March 31, 2019, a $1.5 million, or 4.7%, increase.  The increase in net interest income was primarily driven by average rates of interest-bearing liabilities repricing at a faster rate than average rates of interest-earning assets.

 

The net interest margin was 3.67% for the three months ended March 31, 2020, as compared to 3.49% for the three months ended March 31, 2019 .  The increase in net interest margin was primarily due to a declining-rate environment where the average rate of interest-bearing liabilities fell faster than the average rate of interest-earning assets.  Higher cost deposits were repriced downward and our Federal Home Loan Bank advances were refinanced at lower rates.

 

The provision for loan losses was $9.9 million for the three months ended March 31, 2020, as compared to $15.6 million for the three months ended March 31, 2019.  Included in the first quarter of 2019 was a $14.5 million provision against one credit relationship we believe was an isolated incident that was unique within our portfolio.  For the three months ended March 31, 2020, we had net charge-offs of $257 thousand as compared to net charge-offs of $760 thousand for the same period in 2019.

 

Total non-interest income for the quarter ended March 31, 2020, was $5.3 million, as compared to $5.3 million for the quarter ended March 31, 2019.  A decrease in other non-interest income, mainly from the increase in derivative mark-to-market valuation losses, was principally offset by increases in debit card income, mortgage banking and service charges and fees.

 

Total non-interest expense was $25.8 million for the quarter ended March 31, 2020, as compared to $25.5 million for the quarter ended March 31, 2019.  The increase in non-interest expense is due largely to increases in net occupancy and equipment, data processing, FDIC insurance, professional fees, other non-interest expense and other real estate owned, partially offset by decreases in salaries and employee benefits and telecommunications.  Also, non-interest expense does not include any merger expenses for the three months ended March 31, 2020.  Merger expenses for the three months ended March 31, 2019, totaled $639 thousand ($487 thousand after tax).

 

Equity’s effective tax rate for the quarter ended March 31, 2020, was 26.1%, as compared to 22.1% for the quarter ended March 31, 2019.  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 estimated tax-exempt interest income, non-taxable life insurance income, non-deductible facilitative merger expense and other non-deductible expense in proportion


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/29/2020

to anticipated annual income before income taxes, as well as federal income tax credits anticipated to be available in each annual period.  Income tax expense for the quarter ended March 31, 2020, includes $62 thousand of additional expense attributable to the settlement in stock of restricted stock units and the exercise of stock options.  The exercise of stock options and the settlement of restricted stock units in the quarter ended March 31, 2019, resulted in tax benefits of $8 thousand.

 

Loans, Deposits and Total Assets

 

Loans held for investment were $2.51 billion at March 31, 2020, as compared to $2.56 billion at December 31, 2019, a decrease of $49.5 million.  The decrease in loans is primarily the result of net paydowns in the commercial and industrial, agricultural real estate and residential real estate portfolios, which were partially offset by originations during the quarter.

 

As of March 31, 2020, Equity’s allowance for loan losses to total loans was 0.87%, as compared to 0.48% at December 31, 2019.  Total reserves, including purchase discounts, to total loans were approximately 1.26% as of March 31, 2020, as compared to 0.85% at December 31, 2019.  Nonperforming assets were $48.1 million as of March 31, 2020, or 1.22% of total assets.  Nonperforming assets were $46.9 million at December 31, 2019, or 1.19% of total assets.

 

Total deposits were $2.96 billion at March 31, 2020, as compared to $3.06 billion at December 31, 2019, a decrease of $103.1 million.  This decrease included $80.9 million of savings, NOW and money market deposits and $49.4 million of time deposits, partially offset by an increase of $27.1 million in demand deposits.  The changes in deposits are primarily from decreases by commercial customers and public fund balances related to distribution of tax monies at the local level and seasonality.  Signature deposits were $2.18 billion at March 31, 2020, as compared to $2.23 billion at December 31, 2019.

 

At March 31, 2020, Equity had consolidated total assets of $3.94 billion, as compared to $3.95 billion at December 31, 2019, a decrease of $5.7 million.  

 

Borrowings and Capital

 

At March 31, 2020, borrowings totaled $481.4 million, as compared to $383.6 million at December 31, 2019.  The increase in borrowings was principally due to a $65.2 million increase in Federal Home Loan Bank advances and a $31.0 million increase in the bank stock loan balance.

 

At March 31, 2020, common stockholders’ equity totaled $477.4 million, $31.41 per common share, as compared to $478.1 million, $30.95 per common share, at December 31, 2019.  Tangible common equity was $320.6 million and tangible book value per common share was $21.10 at March 31, 2020.  Tangible common equity was $320.5 million and tangible book value per common share was $20.75 at December 31, 2019.  During the first quarter of 2020, the company repurchased a total of 295,461 shares of our Class A Voting Common Stock at a total cost of $6.9 million, or $23.33 weighted average per share.  The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 11.67%, the total capital to risk-weighted assets was 13.00% and the total leverage ratio was 9.02% at March 31, 2020.  The Company’s subsidiary, Equity Bank’s, ratio of common equity tier 1 capital to risk-weighted assets was 12.71%, the total capital to risk-weighted assets was 13.50% and the total leverage ratio was 9.39% at March 31, 2020.

 

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 2020 results on Thursday, April 30, 2020, at 10 a.m. eastern time, 9:00 a.m. central time.


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/29/2020

 

Investors, news media and other participants should register for the call or audio webcast at investor.equitybank.com . On Thursday, April 30, 2020, 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. 4407029.

 

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 May 7, 2020, accessible at (855) 859-2056 with conference ID no. 4407029 at investor.equitybank.com .

About Equity Bancshares, Inc.

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

 

Special Note Concerning Forward-Looking Statements

 

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

 

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 10, 2020, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, such as COVID-19, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/29/2020

statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.

 

Investor Contact:

 

Chris Navratil

SVP, Finance

Equity Bancshares, Inc.

(316) 612-6014

cnavratil@equitybank.com

 

Media Contact:

 

John J. Hanley

SVP, Senior Director of Marketing

Equity Bancshares, Inc.

(816) 505-4063

jhanley@equitybank.com

 

 

Unaudited Financial Tables

 

Table 1 . Selected Financial Highlights

 

Table 2 . Year-to-Date Analysis of Changes in Net Interest Income

 

Table 3 . Consolidated Balance Sheets

 

Table 4 . Consolidated Statements of Operations

 

Table 5 . Non-GAAP Financial Measures



 

Equity Bancshares, Inc.

PRESS RELEASE - 04/29/2020

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,

 

 

 

2020

 

 

2019

 

 

2019

 

 

2019

 

 

2019

 

Statement of Income Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

32,095

 

 

$

32,405

 

 

$

31,526

 

 

$

31,288

 

 

$

30,639

 

Provision for loan losses

 

 

9,940

 

 

 

1,055

 

 

 

679

 

 

 

974

 

 

 

15,646

 

Net gains (losses) from securities transactions

 

 

8

 

 

 

(3

)

 

 

4

 

 

 

7

 

 

 

6

 

Other non-interest income

 

 

5,298

 

 

 

6,644

 

 

 

6,568

 

 

 

6,444

 

 

 

5,318

 

Total non-interest income

 

 

5,306

 

 

 

6,641

 

 

 

6,572

 

 

 

6,451

 

 

 

5,324

 

Merger expense

 

 

 

 

 

 

 

 

 

 

276

 

 

 

639

 

Other non-interest expense

 

 

25,758

 

 

 

24,846

 

 

 

24,223

 

 

 

24,747

 

 

 

24,904

 

Total non-interest expense

 

 

25,758

 

 

 

24,846

 

 

 

24,223

 

 

 

25,023

 

 

 

25,543

 

Income (loss) before income taxes

 

 

1,703

 

 

 

13,145

 

 

 

13,196

 

 

 

11,742

 

 

 

(5,226

)

Provision for income taxes (benefits)

 

 

445

 

 

 

3,131

 

 

 

2,790

 

 

 

2,510

 

 

 

(1,153

)

Net income (loss) allocable to common stockholders

 

 

1,258

 

 

 

10,014

 

 

 

10,406

 

 

 

9,232

 

 

 

(4,073

)

Basic earnings (loss) per share

 

 

0.08

 

 

 

0.65

 

 

 

0.67

 

 

 

0.59

 

 

 

(0.26

)

Diluted earnings (loss) per share

 

 

0.08

 

 

 

0.64

 

 

 

0.66

 

 

 

0.58

 

 

 

(0.26

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data (at period end)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available-for-sale securities

 

$

187,812

 

 

$

142,067

 

 

$

152,680

 

 

$

161,082

 

 

$

166,355

 

Held-to-maturity securities

 

 

721,992

 

 

 

769,059

 

 

 

764,163

 

 

 

766,950

 

 

 

749,493

 

Gross loans held for investment

 

 

2,507,123

 

 

 

2,556,652

 

 

 

2,600,924

 

 

 

2,679,985

 

 

 

2,618,986

 

Allowance for loan losses

 

 

21,915

 

 

 

12,232

 

 

 

17,875

 

 

 

17,777

 

 

 

26,340

 

Intangible assets, net

 

 

156,704

 

 

 

157,518

 

 

 

158,350

 

 

 

159,147

 

 

 

159,944

 

Total assets

 

 

3,943,832

 

 

 

3,949,578

 

 

 

4,074,663

 

 

 

4,180,074

 

 

 

4,065,354

 

Total deposits

 

 

2,960,397

 

 

 

3,063,516

 

 

 

3,106,929

 

 

 

3,185,893

 

 

 

3,260,870

 

Non-time deposits

 

 

2,176,586

 

 

 

2,230,346

 

 

 

2,177,820

 

 

 

2,192,534

 

 

 

2,220,110

 

Borrowings

 

 

481,371

 

 

 

383,632

 

 

 

480,000

 

 

 

515,582

 

 

 

331,221

 

Total liabilities

 

 

3,466,481

 

 

 

3,471,518

 

 

 

3,607,613

 

 

 

3,721,668

 

 

 

3,611,891

 

Total stockholders’ equity

 

 

477,351

 

 

 

478,060

 

 

 

467,050

 

 

 

458,406

 

 

 

453,463

 

Tangible common equity *

 

 

320,647

 

 

 

320,542

 

 

 

308,700

 

 

 

299,259

 

 

 

293,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Average Balance Sheet Data (quarterly average)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities

 

$

907,910

 

 

$

911,923

 

 

$

926,839

 

 

$

924,914

 

 

$

918,804

 

Total gross loans receivable

 

 

2,525,344

 

 

 

2,568,301

 

 

 

2,646,454

 

 

 

2,655,256

 

 

 

2,560,030

 

Interest-earning assets

 

 

3,519,267

 

 

 

3,563,642

 

 

 

3,657,970

 

 

 

3,665,618

 

 

 

3,560,815

 

Total assets

 

 

3,888,205

 

 

 

3,932,909

 

 

 

4,030,606

 

 

 

4,025,764

 

 

 

3,926,359

 

Interest-bearing deposits

 

 

2,531,508

 

 

 

2,563,519

 

 

 

2,673,007

 

 

 

2,726,443

 

 

 

2,709,596

 

Borrowings

 

 

355,303

 

 

 

377,561

 

 

 

390,562

 

 

 

347,103

 

 

 

269,492

 

Total interest-bearing liabilities

 

 

2,886,811

 

 

 

2,941,080

 

 

 

3,063,569

 

 

 

3,073,546

 

 

 

2,979,088

 

Total deposits

 

 

3,021,181

 

 

 

3,055,275

 

 

 

3,152,785

 

 

 

3,200,624

 

 

 

3,178,164

 

Total liabilities

 

 

3,405,638

 

 

 

3,459,347

 

 

 

3,567,354

 

 

 

3,568,661

 

 

 

3,466,646

 

Total stockholders' equity

 

 

482,567

 

 

 

473,562

 

 

 

463,252

 

 

 

457,103

 

 

 

459,713

 

Tangible common equity *

 

 

325,470

 

 

 

315,569

 

 

 

304,492

 

 

 

297,541

 

 

 

302,398

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ROAA) annualized

 

 

0.13

%

 

 

1.01

%

 

 

1.02

%

 

 

0.92

%

 

 

(0.42

)%

Return on average equity (ROAE) annualized

 

 

1.05

%

 

 

8.39

%

 

 

8.91

%

 

 

8.10

%

 

 

(3.59

)%

Return on average tangible common equity (ROATCE) annualized *

 

 

2.35

%

 

 

13.42

%

 

 

14.38

%

 

 

13.29

%

 

 

(4.62

)%

Yield on loans annualized

 

 

5.47

%

 

 

5.67

%

 

 

5.70

%

 

 

5.74

%

 

 

5.79

%

Cost of interest-bearing deposits annualized

 

 

1.09

%

 

 

1.32

%

 

 

1.56

%

 

 

1.64

%

 

 

1.61

%

Cost of total deposits annualized

 

 

0.91

%

 

 

1.11

%

 

 

1.32

%

 

 

1.40

%

 

 

1.37

%

Net interest margin annualized

 

 

3.67

%

 

 

3.61

%

 

 

3.42

%

 

 

3.42

%

 

 

3.49

%

Efficiency ratio *

 

 

68.88

%

 

 

63.63

%

 

 

63.59

%

 

 

65.59

%

 

 

69.26

%

Non-interest income / average assets

 

 

0.55

%

 

 

0.67

%

 

 

0.65

%

 

 

0.64

%

 

 

0.55

%

Non-interest expense / average assets

 

 

2.66

%

 

 

2.51

%

 

 

2.38

%

 

 

2.49

%

 

 

2.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Equity Bancshares, Inc.

PRESS RELEASE - 04/29/2020

Tier 1 Leverage Ratio

 

 

9.02

%

 

 

9.02

%

 

 

8.49

%

 

 

8.26

%

 

 

8.37

%

Common Equity Tier 1 Capital Ratio

 

 

11.67

%

 

 

11.63

%

 

 

11.08

%

 

 

10.46

%

 

 

10.46

%

Tier 1 Risk Based Capital Ratio

 

 

12.20

%

 

 

12.15

%

 

 

11.59

%

 

 

10.95

%

 

 

10.96

%

Total Risk Based Capital Ratio

 

 

13.00

%

 

 

12.59

%

 

 

12.21

%

 

 

11.56

%

 

 

11.87

%

Total stockholders' equity to total assets

 

 

12.10

%

 

 

12.10

%

 

 

11.46

%

 

 

10.97

%

 

 

11.15

%

Tangible common equity to tangible assets *

 

 

8.47

%

 

 

8.45

%

 

 

7.88

%

 

 

7.44

%

 

 

7.52

%

Book value per common share

 

$

31.41

 

 

$

30.95

 

 

$

30.25

 

 

$

29.45

 

 

$

28.66

 

Tangible book value per common share *

 

$

21.10

 

 

$

20.75

 

 

$

19.99

 

 

$

19.23

 

 

$

18.55

 

Tangible book value per diluted common share *

 

$

20.96

 

 

$

20.39

 

 

$

19.73

 

 

$

18.99

 

 

$

18.30

 

 

* 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 - 04/29/2020

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

(Dollars in thousands)

 

 

For the quarter ended

 

 

For the quarter ended

 

 

March 31, 2020

 

 

March 31, 2019

 

 

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)

$

2,525,344

 

 

$

34,376

 

 

 

5.47

%

 

$

2,560,030

 

 

$

36,533

 

 

 

5.79

%

Total securities

 

907,910

 

 

 

5,586

 

 

 

2.47

%

 

 

918,804

 

 

 

6,035

 

 

 

2.66

%

Federal funds sold and other

 

86,013

 

 

 

595

 

 

 

2.78

%

 

 

81,980

 

 

 

634

 

 

 

3.14

%

Total interest-earning assets

 

3,519,267

 

 

 

40,557

 

 

 

4.64

%

 

 

3,560,814

 

 

 

43,202

 

 

 

4.92

%

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing demand and savings

 

1,724,774

 

 

 

3,125

 

 

 

0.73

%

 

 

1,693,228

 

 

 

5,667

 

 

 

1.36

%

Certificates of deposit

 

806,734

 

 

 

3,739

 

 

 

1.86

%

 

 

1,016,369

 

 

 

5,063

 

 

 

2.02

%

Total interest-bearing deposits

 

2,531,508

 

 

 

6,864

 

 

 

1.09

%

 

 

2,709,597

 

 

 

10,730

 

 

 

1.61

%

FHLB advances & LOC

 

295,677

 

 

 

1,175

 

 

 

1.60

%

 

 

197,610

 

 

 

1,305

 

 

 

2.68

%

Other borrowings

 

59,626

 

 

 

423

 

 

 

2.85

%

 

 

71,882

 

 

 

528

 

 

 

2.98

%

Total interest-bearing liabilities

 

2,886,811

 

 

 

8,462

 

 

 

1.18

%

 

 

2,979,089

 

 

 

12,563

 

 

 

1.71

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

$

32,095

 

 

 

 

 

 

 

 

 

 

$

30,639

 

 

 

 

 

Interest rate spread

 

 

 

 

 

 

 

 

 

3.46

%

 

 

 

 

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (2)

 

 

 

 

 

 

 

 

 

3.67

%

 

 

 

 

 

 

 

 

 

 

3.49

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 quarter ended

 

 

March 31, 2020 vs. 2019

 

 

Total Increase/(Decrease)

 

 

Volume

Variance (1)

 

 

Yield/Rate

Variance (1)

 

 

Total

Variance

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

 

Loans

$

(490

)

 

$

(1,667

)

 

$

(2,157

)

Total securities

 

(75

)

 

 

(374

)

 

 

(449

)

Federal funds sold and other

 

30

 

 

 

(69

)

 

 

(39

)

Total interest-earning assets

 

(535

)

 

 

(2,110

)

 

 

(2,645

)

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

 

Total interest-bearing demand and savings

 

105

 

 

 

(2,647

)

 

 

(2,542

)

Certificates of deposit

 

(990

)

 

 

(334

)

 

 

(1,324

)

Total interest-bearing deposits

 

(885

)

 

 

(2,981

)

 

 

(3,866

)

FHLB advances & LOC

 

504

 

 

 

(634

)

 

 

(130

)

Other borrowings

 

(37

)

 

 

(68

)

 

 

(105

)

Total interest-bearing liabilities

 

(418

)

 

 

(3,683

)

 

 

(4,101

)

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

$

(117

)

 

$

1,573

 

 

$

1,456

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 - 04/29/2020

TABLE 3 . CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

  

 

 

March 31,

 

 

December 31,

 

 

 

2020

 

 

2019

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

141,989

 

 

$

88,973

 

Federal funds sold

 

 

263

 

 

 

318

 

Cash and cash equivalents

 

 

142,252

 

 

 

89,291

 

Interest-bearing time deposits in other banks

 

 

2,498

 

 

 

2,498

 

Available-for-sale securities

 

 

187,812

 

 

 

142,067

 

Held-to-maturity securities, fair value of $750,900 and $783,911

 

 

721,992

 

 

 

769,059

 

Loans held for sale

 

 

6,494

 

 

 

5,933

 

Loans, net of allowance for loan losses of $21,915 and $12,232

 

 

2,485,208

 

 

 

2,544,420

 

Other real estate owned, net

 

 

5,870

 

 

 

8,293

 

Premises and equipment, net

 

 

84,732

 

 

 

84,478

 

Bank-owned life insurance

 

 

75,585

 

 

 

75,103

 

Federal Reserve Bank and Federal Home Loan Bank stock

 

 

31,662

 

 

 

31,137

 

Interest receivable

 

 

15,549

 

 

 

15,738

 

Goodwill

 

 

136,432

 

 

 

136,432

 

Core deposit intangibles, net

 

 

19,105

 

 

 

19,907

 

Other

 

 

28,641

 

 

 

25,222

 

Total assets

 

$

3,943,832

 

 

$

3,949,578

 

LIABILITIES AND STOCKHOLDERS’ EQUITY