Equity Bancshares, Inc. Second Quarter Results Include Strong Organic Loan Growth, Company to Acquire St. Joseph Bank Locations, Expanding Missouri Network

Annualized organic non-PPP loan growth contributes to $1.03 per diluted share, Company will acquire three Security Bank of KC branch locations in St. Joseph, Missouri

WICHITA, Kan., July 19, 2021 (GLOBE NEWSWIRE) -- Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “the Company”, “we”, “us”, “our”), the Wichita-based holding company of Equity Bank, reported net income of $15.2 million and $1.03 per diluted share for the second quarter ended June 30, 2021.

“Our Equity Bank team had an excellent quarter serving our customers, expanding our delivery channels and adding shareholder value. Exclusive of the Paycheck Protection Program, we organically grew gross loans by $81.8 million, an annualized rate of 14.75%, through the focused efforts of our sales and operational teams,” said Brad S. Elliott, Chairman and CEO of Equity. “A key component of our results is growth in our core deposit customer base, with new banking products contributing to a $1.1 million increase in service fee revenue, as well as the continued addition of trust and wealth management customer relationships.”

Equity customers successfully had $99.7 million of Paycheck Protection Program (“PPP”) loans forgiven during the quarter, resulting in the recognition of fee income totaling $5.7 million in the three-month period ended June 30, 2021. At June 30, 2021, the total unrecognized fee income associated with PPP loans was $10.7 million. Through two rounds of PPP, Equity originated more than $610.0 million in PPP loans.

Further driving results this quarter was customer and relationship growth within Equity Trust and Wealth Management and Equity’s consumer deposit base, expansion of non-interest income with Equity’s debit card platform and increased transaction activity within our deposit customer base.

The Company has announced its expansion into St. Joseph, Missouri, with a definitive branch purchase and assumption agreement to acquire the assets and assume the deposits of three bank locations from Security Bank of Kansas City (“Security”), a subsidiary of Valley View Financial Co. (“Valley”) of Overland Park, Kansas. Equity anticipates closing the transaction in the fourth quarter of 2021.

“We are pleased with the opportunity to offer Equity Bank products and services to customers in Northwest Missouri, and St. Joseph is a great fit within our network,” said Mr. Elliott. “We have been able to grow loans, fee income and our core deposit base effectively in Western Missouri with a focus on local community banking and we believe this approach will serve customers well in our new St. Joseph region.”

“Our recent merger announcement with American State Bancshares, Inc. is a great cultural fit for us as well as an expansion of our Kansas market, and our teams have worked diligently alongside one another. We remain on target for a closing and conversion of data systems in early October,” said Mr. Elliott. “I thank everyone on both the Equity and American State Bancshares, Inc. teams for their collaboration and hard work to make sure we continue to deliver excellent customer service while increasing shareholder value.”

Notable Items:

  • Quarter over quarter, service fee revenue, including deposit services, mortgage banking, trust and wealth and insurance services increased to $6.4 million from $5.3 million, or 20.77%.
  • The Company authorized a second stock repurchase program in the third quarter of 2020 totaling 800,000 shares. During the quarter ended June 30, 2021, the Company repurchased 73,070 shares at a weighted average cost of $28.94 per share, totaling $2.1 million. At the end of the quarter, capacity of 180,687 shares remained under the current repurchase program.
  • Additional information attained on the assets purchased through the Almena State Bank (“Almena”) transaction indicated a more positive outcome than originally expected, resulting in a net reduction in reserves on the balance sheet and an increase in gain on acquisition of $663 thousand during the quarter.
  • During the quarter ended June 30, 2021, there was a release of allowance for credit losses of $1.7 million as compared to a release of $5.8 million in the quarter ended March 31, 2021. The release in the second quarter was driven primarily by improvement in assets specifically assessed for impairment as asset quality improved quarter over quarter.

Equity’s Balance Sheet Highlights:

  • Total loans held for investment of $2.82 billion at June 30, 2021, as compared to total loans held for investment of $2.80 billion at March 31, 2021. The periodic change included organic loan production of $81.8 million, or 14.75%.
  • Total deposits of $3.69 billion at June 30, 2021, as compared to $3.63 billion at March 31, 2021. Checking, savings and money market accounts were $3.03 billion at June 30, 2021, relative to $3.05 billion at March 31, 2021. Included in the periodic change was a $20.2 million increase in non-interest-bearing deposits. As compared to December 31, 2020, the Bank has increased non-interest-bearing deposits by $200.9 million, or 25.38%.
  • The allowance for credit losses as of June 30, 2021, was $51.8 million, or 1.84% of total loans and 2.04% of total loans excluding PPP assets.

Acquisition of Three Bank Locations in St. Joseph, Missouri

Equity will operate each of the three Security locations in St. Joseph as Equity Bank locations following completion of the acquisition, expected in December of 2021. Joshua J. Means, President of Western Missouri, will oversee the St. Joseph community bank locations. Equity will operate a total of 16 locations in Missouri, including the three Security locations, eight bank locations in legacy Western Missouri communities and five bank locations on the Missouri side of the Kansas City metropolitan area.

In Equity’s Western Missouri region, notable for communities like Warrensburg, Sedalia and Higginsville, deposits as of June 30, 2018, were $478.4 million, compared to $614.8 million as of June 30, 2021. Total loans in Equity’s Western Missouri region were $147.0 million as of June 30, 2018, compared to $218.3 million as of June 30, 2021, growing by 48.5% during the three-year period.

“Each of our Missouri locations delivers outstanding service to our consumer, mortgage and business customers and we expect St. Joseph to serve as a key market for us in Northwest Missouri. Josh Means and his regional leadership team have helped our local banks grow in loans, fee income and deposits, one relationship at a time,” said Mr. Elliott. “We are pleased to welcome talented community bankers to our Equity team and to offer St. Joseph-area consumers enhanced commercial and business banking solutions.”

Equity announced in May its merger with American State Bancshares, Inc. (“ASBI”), the holding company of American State Bank, a $779 million bank with headquarters in Wichita, Kansas, and 17 locations in its Kansas footprint. Equity expects to complete the merger with ASBI in October 2021. Pro forma Equity Bank, including ASBI and Security deposits and locations, will comprise more than 70 locations throughout our four-state footprint and hold more than $5 billion in assets.

Pursuant to the terms of the Branch Purchase and Assumption Agreement, between Equity Bank and Security, Equity will acquire certain loans and other branch-related assets and assume certain deposits and other liabilities associated with the Security branches.

Financial Results for the Quarter Ended June 30, 2021

Net income allocable to common stockholders was $15.2 million, or $1.03 per diluted share, for the three months ended June 30, 2021, as compared to $15.1 million, or $1.02 per diluted share, for the three months ended March 31, 2021, an increase of $91 thousand. This second quarter increase was attributable to a net interest income increase of $2.9 million and a non-interest income increase of $2.4 million, partially offset by a $4.1 million decrease in reversal of provision for credit losses, a $925 thousand increase in non-interest expense and a $144 thousand increase in provision for income taxes.

Net Interest Income

Net interest income was $34.6 million for the three months ended June 30, 2021, as compared to $31.8 million for the three months ended March 31, 2021, an increase of $2.9 million, or 9.0%. The increase in net interest income was primarily driven by a 15-basis point increase in the average yield earned on interest-earning assets, to 3.88% for the quarter ended June 30, 2021, from 3.73% for the quarter ended March 31, 2021. In addition, there was a 6-basis point decrease in average rate paid on interest-bearing liabilities, to 0.52% for the quarter ended June 30, 2021, from 0.58% for the quarter ended March 31, 2021. The cost of interest-bearing deposits declined by 5 basis points to 0.31% for the three months ended June 30, 2021 from 0.36% in the previous quarter primarily attributed to the reduction in the cost of time deposits, that slipped 19 basis points between the quarters.

Provision for Credit Losses

During the three months ended June 30, 2021, there was a net release of $1.7 million in the allowance for credit losses recognized through the provision for credit losses as compared to a net release of $5.8 million provision for credit losses for the three months ended March 31, 2021. For the three months ended June 30, 2021, we had net charge-offs of $567 thousand as compared to $65 thousand for the three months ended March 31, 2021. The release in the second quarter was driven primarily by improvement in assets individually evaluated for impairment as asset quality improved quarter over quarter.

Non-Interest Income

Total non-interest income was $9.1 million for the three months ended June 30, 2021, as compared to $6.7 million for the three months ended March 31, 2021, or $8.4 million excluding the $663 thousand net gain on the purchase and assumption of Almena State Bank. Other non-interest income was $2.1 million, an increase of $774 thousand, or 60.0%, from the quarter ended March 31, 2021. The increase in other non-interest income was primarily due to income of $917 thousand related to the reversal of potential repurchase obligation on acquired assets as Equity was able to improve our position on those assets during the quarter.

During the quarter, service fee revenue, including deposit services, mortgage banking, trust and wealth management, credit cards and insurance increased to $6.4 million from $5.3 million during the first quarter. The growth was driven by increasing balances, transaction activity and relationship development within our trust and wealth management business line.

Non-Interest Expense

Total non-interest expense for the quarter ended June 30, 2021, was $25.8 million as compared to $24.9 million for the quarter ended March 31, 2021. The $925 thousand change is primarily attributed to an increase of $811 thousand in data processing expense, as deposit accounts and activity have increased so too has the associated expense. The periodic increase also included $308 thousand in merger expense.

Asset Quality

As of June 30, 2021, Equity’s allowance for credit losses to total loans was 1.84%, as compared to 1.99% at March 31, 2021. Exclusive of PPP assets, the reserve to total loans was 2.04% as of June 30, 2021 as compared to 2.33% at March 31, 2021. Nonperforming assets were $66.7 million as of June 30, 2021, or 1.56% of total assets, compared to $70.1 million at March 31, 2021, or 1.67% of total assets. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $103.1 million, or 23.11% of regulatory capital, down from $112.6 million, or 26.45% of regulatory capital as of March 31, 2021.

Regulatory Capital

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.4%, the total capital to risk-weighted assets was 16.7% and the total leverage ratio was 8.9% at June 30, 2021. At December 31, 2020, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.8%, the total capital to risk-weighted assets ratio was 17.4% and the total leverage ratio was 9.3%. The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.4%, a ratio of total capital to risk-weighted assets of 15.6% and a total leverage ratio of 9.9% at June 30, 2021. At December 31, 2020, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 14.5%, the ratio of total capital to risk-weighted assets was 15.7% and the total leverage ratio was 10.1%.

Non-GAAP Financial Measures

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

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

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

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

The Company believes that disclosing these non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included in Table 8 in the following press release tables.

Conference Call and Webcast

Equity Chairman and Chief Executive Officer, Brad Elliott, and Executive Vice President and Chief Financial Officer, Eric Newell, will hold a conference call and webcast to discuss the 2021 second quarter results on Tuesday, July 20, 2021, at 10:00 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, July 20, 2021, 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. 9999830.

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 July 27, 2021, accessible at (855) 859-2056 with conference ID no. 9999830 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.

Important Additional Information

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval.

In connection with the proposed transaction, Equity filed with the Securities and Exchange Commission (“SEC”) a registration statement on Form S-4 to register the shares of Equity common stock to be issued to ASBI stockholders. The registration statement included a proxy statement/prospectus, which will be sent to the stockholders of ASBI seeking their approval of the proposed transaction.

WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT EQUITY, ASB AND THE PROPOSED TRANSACTION.

The documents filed by Equity with the SEC may be obtained free of charge at Equity’s investor relations website at investor.equitybank.com or at the SEC’s website at www.sec.gov. Alternatively, these documents, when available, can be obtained free of charge from Equity upon written request to Equity Bancshares, Inc., Attn: Investor Relations, 7701 East Kellogg Drive, Suite 300, Wichita, Kansas 67207 or by calling (316) 612-6000.

Participants in the Transaction

Equity, ASBI and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from ASBI’s stockholders in connection with the proposed transaction under the rules of the SEC. Information about the directors and executive officers of Equity is set forth in the proxy statement for Equity’s 2021 annual meeting of stockholders filed with the SEC on Schedule 14A on March 18, 2021, and Equity’s annual report on Form 10-K for the year ended December 31, 2020 filed with the SEC on March 9, 2021. Free copies of these documents may be obtained free of charge as described in the preceding paragraph. Additional information regarding the interests of these participants and other persons who may be deemed participants in the transaction may be obtained by reading the proxy statement/prospectus regarding the proposed transaction when it becomes available.

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 results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include COVID-19 related impacts; competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive.

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2021, 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 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. Consolidated Statements of Income
  • Table 2. Quarterly Consolidated Statements of Income
  • Table 3. Consolidated Balance Sheets
  • Table 4. Selected Financial Highlights
  • Table 5. Year-To-Date Net Interest Income Analysis
  • Table 6. Quarter-To-Date Net Interest Income Analysis
  • Table 7. Quarter-Over-Quarter Net Interest Income Analysis
  • Table 8. Non-GAAP Financial Measures

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

    Three months ended
June 30,
    Six months ended
June 30,
 
    2021     2020     2021     2020  
Interest and dividend income                                
Loans, including fees   $ 33,810     $ 32,627     $ 64,811     $ 67,003  
Securities, taxable     3,523       4,017       7,322       8,637  
Securities, nontaxable     717       880       1,441       1,846  
Federal funds sold and other     268       409       556       1,004  
Total interest and dividend income     38,318       37,933       74,130       78,490  
Interest expense                                
Deposits     2,025       3,899       4,435       10,763  
Federal funds purchased and retail repurchase agreements     26       24       48       55  
Federal Home Loan Bank advances     80       552       145       1,727  
Federal Reserve Bank discount window           6             6  
Bank stock loan           306             415  
Subordinated debt     1,557       255       3,113       538  
Total interest expense     3,688       5,042       7,741       13,504  
                                 
Net interest income     34,630       32,891       66,389       64,986  
Provision (reversal) for credit losses     (1,657 )     12,500       (7,413 )     22,440  
Net interest income after provision (reversal) for credit losses     36,287       20,391       73,802       42,546  
Non-interest income                                
Service charges and fees     2,169       1,365       3,765       3,391  
Debit card income     2,679       2,201       5,029       4,244  
Mortgage banking     848       831       1,783       1,421  
Increase in value of bank-owned life insurance     676       481       1,277       963  
Net gain on acquisition     663             585        
Net gains (losses) from securities transactions           4       17       12  
Other     2,065       850       3,356       1,007  
Total non-interest income     9,100       5,732       15,812       11,038  
Non-interest expense                                
Salaries and employee benefits     12,769       12,695       25,491       26,199  
Net occupancy and equipment     2,327       2,119       4,695       4,354  
Data processing     3,474       2,763       6,137       5,426  
Professional fees     999       943       2,072       2,310  
Advertising and business development     799       403       1,481       1,099  
Telecommunications     512       390       1,092       877  
FDIC insurance     425       414       840       931  
Courier and postage     327       353       696       737  
Free nationwide ATM cost     513       327       985       747  
Amortization of core deposit intangibles     1,030       974       2,064       1,776  
Loan expense     181       287       419       521  
Other real estate owned     (468 )     269       (463 )     577  
Merger expenses     460             612        
Other     2,458       2,000       4,566       4,141  
Total non-interest expense     25,806       23,937       50,687       49,695  
Income (loss) before income tax     19,581       2,186       38,927       3,889  
Provision for income taxes     4,415       497       8,686       942  
Net income (loss) and net income (loss) allocable to common stockholders   $ 15,166     $ 1,689     $ 30,241     $ 2,947  
Basic earnings (loss) per share   $ 1.06     $ 0.11     $ 2.10     $ 0.19  
Diluted earnings (loss) per share   $ 1.03     $ 0.11     $ 2.06     $ 0.19  
Weighted average common shares     14,356,958       15,209,483       14,410,328       15,298,590  
Weighted average diluted common shares     14,674,838       15,304,009       14,704,240       15,449,517  

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

    As of and for the three months ended  
    June 30,
2021
    March 31,
2021
    December 31,
2020
    September 30,
2020
    June 30,
2020
 
Interest and dividend income                                        
Loans, including fees   $ 33,810     $ 31,001     $ 35,383     $ 32,278     $ 32,627  
Securities, taxable     3,523       3,799       3,408       3,476       4,017  
Securities, nontaxable     717       724       913       923       880  
Federal funds sold and other     268       288       285       405       409  
Total interest and dividend income     38,318       35,812       39,989       37,082       37,933  
Interest expense                                        
Deposits     2,025       2,410       2,755       3,064       3,899  
Federal funds purchased and retail repurchase agreements     26       22       25       25       24  
Federal Home Loan Bank advances     80       65       94       471       552  
Federal Reserve Bank discount window                             6  
Bank stock loan                             306  
Subordinated debt     1,557       1,556       1,556       1,415       255  
Total interest expense     3,688       4,053       4,430       4,975       5,042  
                                         
Net interest income     34,630       31,759       35,559       32,107       32,891  
Provision (reversal) for credit losses     (1,657 )     (5,756 )     1,000       815       12,500  
Net interest income after provision (reversal) for credit losses     36,287       37,515       34,559       31,292       20,391  
Non-interest income                                        
Service charges and fees     2,169       1,596       1,759       1,706       1,365  
Debit card income     2,679       2,350       2,401       2,491       2,201  
Mortgage banking     848       935       855       877       831  
Increase in value of bank-owned life insurance     676       601       489       489       481  
Net gain on acquisition     663       (78 )     2,145              
Net gains (losses) from securities transactions           17       (1 )           4  
Other     2,065       1,291       852       922       850  
Total non-interest income     9,100       6,712       8,500       6,485       5,732  
Non-interest expense                                        
Salaries and employee benefits     12,769       12,722       14,053       13,877       12,695  
Net occupancy and equipment     2,327       2,368       2,206       2,224       2,119  
Data processing     3,474       2,663       2,748       2,817       2,763  
Professional fees     999       1,073       1,095       877       943  
Advertising and business development     799       682       801       598       403  
Telecommunications     512       580       510       486       390  
FDIC insurance     425       415       797       360       414  
Courier and postage     327       369       338       366       353  
Free nationwide ATM cost     513       472       423       439       327  
Amortization of core deposit intangibles     1,030       1,034       1,044       1,030       974  
Loan expense     181       238       161       107       287  
Other real estate owned     (468 )     5       1,600       133       269  
Merger expenses     460       152       299              
Goodwill impairment                       104,831        
Other     2,458       2,108       2,385       2,690       2,000  
Total non-interest expense     25,806       24,881       28,460       130,835       23,937  
Income (loss) before income tax     19,581       19,346       14,599       (93,058 )     2,186  
Provision for income taxes (benefit)     4,415       4,271       2,111       (2,653 )     497  
Net income (loss) and net income (loss) allocable to common stockholders   $ 15,166     $ 15,075     $ 12,488     $ (90,405 )   $ 1,689  
Basic earnings (loss) per share   $ 1.06     $ 1.04     $ 0.85     $ (6.01 )   $ 0.11  
Diluted earnings (loss) per share   $ 1.03     $ 1.02     $ 0.84     $ (6.01 )   $ 0.11  
Weighted average common shares     14,356,958       14,464,291       14,760,810       15,040,407       15,209,483  
Weighted average diluted common shares     14,674,838       14,734,083       14,934,058       15,040,407       15,304,009  

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

    June 30,
2021
    March 31,
2021
    December 31,
2020
    September 30,
2020
    June 30,
2020
 
ASSETS                                        
Cash and due from banks   $ 138,869     $ 136,190     $ 280,150     $ 65,534     $ 178,045  
Federal funds sold     452       498       548       305       245  
Cash and cash equivalents     139,321       136,688       280,698       65,839       178,290  
Interest-bearing time deposits in other banks           249       249       499       2,248  
Available-for-sale securities     1,041,614       998,100       871,827       798,576       177,228  
Held-to-maturity securities(1)                             662,522  
Loans held for sale     6,183       8,609       12,394       9,053       4,802  
Loans, net of allowance for credit losses(2)     2,763,227       2,740,215       2,557,987       2,691,626       2,772,256  
Other real estate owned, net     10,861       10,559       11,733       8,727       7,374  
Premises and equipment, net     90,876       90,322       89,412       86,087       87,055  
Bank-owned life insurance     103,321       102,645       77,044       76,555       76,066  
Federal Reserve Bank and Federal Home Loan Bank stock     18,454       15,174       16,415       32,545       31,832  
Interest receivable     15,064       16,655       15,831       18,110       19,598  
Goodwill     31,601       31,601       31,601       31,601       136,432  
Core deposit intangibles, net     13,993       15,023       16,057       17,101       18,131  
Other     33,701       30,344       32,108       29,252       31,435  
Total assets   $ 4,268,216     $ 4,196,184     $ 4,013,356     $ 3,865,571     $ 4,205,269  
LIABILITIES AND STOCKHOLDERS’ EQUITY                                        
Deposits                                        
Demand   $ 992,565     $ 972,364     $ 791,639     $ 693,967     $ 756,613  
Total non-interest-bearing deposits     992,565       972,364       791,639       693,967       756,613  
Savings, NOW and money market     2,035,496       2,074,261       2,029,097       1,816,307       1,800,132  
Time     659,494       587,905       626,854       623,344       690,522  
Total interest-bearing deposits     2,694,990       2,662,166       2,655,951       2,439,651       2,490,654  
Total deposits     3,687,555       3,634,530       3,447,590       3,133,618       3,247,267  
Federal funds purchased and retail repurchase agreements     47,184       40,339       36,029       46,295       51,557  
Federal Home Loan Bank advances     9,208       9,926       10,144       167,862       344,900  
Subordinated debt     87,908       87,788       87,684       87,537       55,575  
Contractual obligations     4,469       4,856       5,189       5,478       5,571  
Interest payable and other liabilities     18,897       20,930       19,071       22,609       20,633  
Total liabilities     3,855,221       3,798,369       3,605,707       3,463,399       3,725,503  
Commitments and contingent liabilities                                        
Stockholders’ equity                                        
Common stock     176       175       174       174       174  
Additional paid-in capital     389,394       387,939       386,820       386,017       384,955  
Retained earnings     68,625       53,459       50,787       38,299       128,704  
Accumulated other comprehensive income, net of tax     13,450       12,019       19,781       21,074       3,390  
Employee stock loans                 (43 )     (43 )     (43 )
Treasury stock     (58,650 )     (55,777 )     (49,870 )     (43,349 )     (37,414 )
Total stockholders’ equity     412,995       397,815       407,649       402,172       479,766  
Total liabilities and stockholders’ equity   $ 4,268,216     $ 4,196,184     $ 4,013,356     $ 3,865,571     $ 4,205,269  
                                         
(1) Fair market value of held-to-maturity securities   $     $     $     $     $ 689,206  
(2) Allowance for credit losses     51,834       55,525       33,709       34,087       34,078  

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

    As of and for the three months ended  
    June 30,     March 31,     December 31,     September 30,     June 30,  
    2021     2021     2020     2020     2020  
Loans Held-For-Investment by Type                                        
Commercial real estate   $ 1,261,214     $ 1,218,537     $ 1,188,696     $ 1,188,329     $ 1,191,336  
Commercial and industrial     732,126       820,736       734,495       857,244       883,355  
Residential real estate     503,110       438,503       381,958       402,242       442,486  
Agricultural real estate     129,020       134,944       133,693       127,349       129,080  
Agricultural     97,912       93,764       94,322       83,084       89,040  
Consumer     91,679       89,256       58,532       67,465       71,037  
Total loans held-for-investment     2,815,061       2,795,740       2,591,696       2,725,713       2,806,334  
Allowance for credit losses     (51,834 )     (55,525 )     (33,709 )     (34,087 )     (34,078 )
Net loans held-for-investment   $ 2,763,227     $ 2,740,215     $ 2,557,987     $ 2,691,626     $ 2,772,256  
                                         
                                         
Asset Quality Ratios                                        
Allowance for credit losses on loans to total loans     1.84 %     1.99 %     1.30 %     1.25 %     1.21 %
Past due or nonaccrual loans to total loans     2.09 %     2.30 %     1.99 %     2.12 %     1.88 %
Nonperforming assets to total assets     1.56 %     1.67 %     1.36 %     1.55 %     1.37 %
Nonperforming assets to total loans plus other real estate owned     2.36 %     2.50 %     2.10 %     2.19 %     2.05 %
Classified assets to bank total regulatory capital     23.11 %     26.45 %     25.50 %     18.35 %     20.81 %
                                         
                                         
Selected Average Balance Sheet Data (QTD Average)                                        
Investment securities   $ 986,986     $ 947,453     $ 814,114     $ 802,525     $ 877,308  
Total gross loans receivable     2,853,145       2,736,918       2,692,223       2,758,680       2,806,865  
Interest-earning assets     3,964,633       3,891,140       3,647,730       3,679,168       3,786,629  
Total assets     4,231,439       4,143,752       3,910,628       4,041,187       4,159,336  
Interest-bearing deposits     2,656,052       2,690,159       2,551,219       2,430,407       2,487,187  
Borrowings     171,658       139,360       172,730       377,158       384,727  
Total interest-bearing liabilities     2,827,710       2,829,519       2,723,949       2,807,565       2,871,914  
Total deposits     3,624,950       3,577,625       2,960,791       3,145,810       3,257,631  
Total liabilities     3,827,400       3,748,114       3,501,056       3,558,099       3,675,731  
Total stockholders' equity     404,039       395,638       409,572       483,088       483,605  
Tangible common equity*     356,705       347,262       355,025       329,039       327,411  
                                         
                                         
Performance ratios                                        
Return on average assets (ROAA) annualized     1.44 %     1.48 %     1.27 %     (8.90 )%     0.16 %
Return on average assets before income tax, provision for loan losses and goodwill impairment*     1.70 %     1.33 %     1.59 %     1.24 %     1.42 %
Return on average equity (ROAE) annualized     15.06 %     15.45 %     12.13 %     (74.45 )%     1.40 %
Return on average equity before income tax, provision for loan losses and goodwill impairment*     17.79 %     13.93 %     15.15 %     10.37 %     12.21 %
Return on average tangible common equity (ROATCE) annualized*     17.98 %     18.57 %     14.93 %     (108.31 )%     3.03 %
Return on average tangible common equity adjusted for goodwill impairment*     17.98 %     18.57 %     14.93 %     12.01 %     3.03 %
Yield on loans annualized     4.75 %     4.59 %     5.23 %     4.65 %     4.68 %
Cost of interest-bearing deposits annualized     0.31 %     0.36 %     0.43 %     0.50 %     0.63 %
Cost of total deposits annualized     0.22 %     0.27 %     0.37 %     0.39 %     0.48 %
Net interest margin annualized     3.50 %     3.31 %     3.88 %     3.47 %     3.49 %
Efficiency ratio*     58.85 %     64.18 %     67.19 %     67.38 %     61.98 %
Non-interest income / average assets     0.86 %     0.66 %     0.86 %     0.64 %     0.55 %
Non-interest expense / average assets     2.45 %     2.44 %     2.90 %     12.88 %     2.31 %
                                         
                                         
Capital Ratios                                        
Tier 1 Leverage Ratio     8.88 %     8.73 %     9.30 %     8.76 %     8.52 %
Common Equity Tier 1 Capital Ratio     12.41 %     12.53 %     12.82 %     12.76 %     12.02 %
Tier 1 Risk Based Capital Ratio     12.93 %     13.08 %     13.37 %     13.32 %     12.57 %
Total Risk Based Capital Ratio     16.73 %     17.02 %     17.35 %     17.35 %     15.33 %
Total stockholders' equity to total assets     9.68 %     9.48 %     10.16 %     10.40 %     11.41 %
Tangible common equity to tangible assets*     8.68 %     8.44 %     9.05 %     9.23 %     8.00 %
Book value per common share   $ 28.76     $ 27.66     $ 28.04     $ 27.08     $ 31.53  
Tangible book value per common share*   $ 25.51     $ 24.34     $ 24.68     $ 23.72     $ 21.29  
Tangible book value per diluted common share*   $ 24.98     $ 23.87     $ 24.32     $ 23.57     $ 21.13  

* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures, see Table 8. Non-GAAP Financial Measures

TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)

  For the six months ended     For the six months ended  
  June 30, 2021     June 30, 2020  
  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)                                              
Commercial and industrial $ 814,895     $ 20,962       5.19 %   $ 712,115     $ 16,258       4.59 %
Commercial real estate   981,482       22,873       4.70 %     923,625       25,134       5.47 %
Real estate construction   254,807       4,531       3.59 %     260,530       6,413       4.95 %
Residential real estate   430,123       9,093       4.26 %     481,716       10,156       4.24 %
Agricultural real estate   136,366       3,384       5.00 %     134,098       4,046       6.07 %
Agricultural   94,596       2,062       4.40 %     87,892       2,576       5.89 %
Consumer   83,083       1,906       4.63 %     66,128       2,420       7.36 %
Total loans   2,795,352       64,811       4.68 %     2,666,104       67,003       5.05 %
Securities                                              
Taxable securities   863,801       7,322       1.71 %     763,992       8,637       2.27 %
Nontaxable securities   103,529       1,441       2.81 %     128,616       1,846       2.89 %
Total securities   967,330       8,763       1.83 %     892,608       10,483       2.36 %
Federal funds sold and other   165,408       556       0.68 %     94,234       1,004       2.14 %
Total interest-earning assets $ 3,928,090       74,130       3.81 %   $ 3,652,946       78,490       4.32 %
Interest-bearing liabilities                                              
Savings, NOW and money market deposits $ 2,073,658       1,865       0.18 %   $ 1,739,527       4,048       0.47 %
Time deposits   599,353       2,570       0.86 %     769,820       6,715       1.75 %
Total interest-bearing deposits   2,673,011       4,435       0.33 %     2,509,347       10,763       0.86 %
FHLB advances   23,911       145       1.22 %     283,231       1,727       1.23 %
Other borrowings   131,687       3,161       4.84 %     86,784       1,014       2.35 %
Total interest-bearing liabilities $ 2,828,609       7,741       0.55 %   $ 2,879,362       13,504       0.94 %
                                               
Net interest income         $ 66,389                     $ 64,986          
Interest rate spread                   3.26 %                     3.38 %
                                               
Net interest margin (2)                   3.41 %                     3.58 %
                                               
(1) Average loan balances include nonaccrual loans.  
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.  
(3) Tax exempt income is not included in the above table on a tax-equivalent basis.  
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts.  

TABLE 6. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)

  For the three months ended     For the three months ended  
  June 30, 2021     June 30, 2020  
  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)                                              
Commercial and industrial $ 826,647     $ 11,729       5.69 %   $ 868,302     $ 8,378       3.88 %
Commercial real estate   991,033       11,433       4.63 %     934,186       12,192       5.25 %
Real estate construction   253,947       2,352       3.71 %     253,672       2,837       4.50 %
Residential real estate   465,525       4,642       4.00 %     467,246       4,854       4.18 %
Agricultural real estate   131,906       1,687       5.13 %     130,533       1,955       6.02 %
Agricultural   94,407       1,024       4.35 %     87,830       1,266       5.80 %
Consumer   89,680       943       4.22 %     65,096       1,145       7.07 %
Total loans   2,853,145       33,810       4.75 %     2,806,865       32,627       4.68 %
Securities                                              
Taxable securities   887,983       3,523       1.59 %     753,332       4,017       2.14 %
Nontaxable securities   99,003       717       2.90 %     123,976       880       2.86 %
Total securities   986,986       4,240       1.72 %     877,308       4,897       2.25 %
Federal funds sold and other   124,502       268       0.86 %     102,456       409       1.61 %
Total interest-earning assets $ 3,964,633       38,318       3.88 %   $ 3,786,629       37,933       4.03 %
Interest-bearing liabilities                                              
Savings, NOW and money market deposits $ 2,068,319       895       0.17 %   $ 1,754,280       923       0.21 %
Time deposits   587,733       1,130       0.77 %     732,907       2,976       1.63 %
Total interest-bearing deposits   2,656,052       2,025       0.31 %     2,487,187       3,899       0.63 %
FHLB advances   37,656       80       0.86 %     270,785       552       0.82 %
Other borrowings   134,002       1,583       4.74 %     113,942       591       2.09 %
Total interest-bearing liabilities $ 2,827,710       3,688       0.52 %   $ 2,871,914       5,042       0.71 %
                                               
Net interest income         $ 34,630                     $ 32,891          
Interest rate spread                   3.36 %                     3.32 %
                                               
Net interest margin (2)                   3.50 %                     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.  

TABLE 7. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)

  For the three months ended     For the three months ended  
  June 30, 2021     March 31, 2021  
  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)                                              
Commercial and industrial $ 826,647     $ 11,729       5.69 %   $ 803,012     $ 9,234       4.66 %
Commercial real estate   991,033       11,433       4.63 %     971,825       11,441       4.77 %
Real estate construction   253,947       2,352       3.71 %     255,677       2,178       3.45 %
Residential real estate   465,525       4,642       4.00 %     394,329       4,452       4.58 %
Agricultural real estate   131,906       1,687       5.13 %     140,875       1,696       4.88 %
Agricultural   94,407       1,024       4.35 %     94,787       1,037       4.44 %
Consumer   89,680       943       4.22 %     76,413       963       5.11 %
Total loans   2,853,145       33,810       4.75 %     2,736,918       31,001       4.59 %
Securities                                              
Taxable securities   887,983       3,523       1.59 %     839,349       3,799       1.84 %
Nontaxable securities   99,003       717       2.90 %     108,104       724       2.72 %
Total securities   986,986       4,240       1.72 %     947,453       4,523       1.94 %
Federal funds sold and other   124,502       268       0.86 %     206,769       288       0.56 %
Total interest-earning assets $ 3,964,633       38,318       3.88 %   $ 3,891,140       35,812       3.73 %
Interest-bearing liabilities                                              
Savings, NOW and money market deposits $ 2,068,319       895       0.17 %   $ 2,079,057       971       0.19 %
Time deposits   587,733       1,130       0.77 %     611,102       1,439       0.96 %
Total interest-bearing deposits   2,656,052       2,025       0.31 %     2,690,159       2,410       0.36 %
FHLB advances   37,656       80       0.86 %     10,013       65       2.63 %
Other borrowings   134,002       1,583       4.74 %     129,347       1,578       4.96 %
Total interest-bearing liabilities $ 2,827,710       3,688       0.52 %   $ 2,829,519       4,053       0.58 %
                                               
Net interest income         $ 34,630                     $ 31,759          
Interest rate spread                   3.36 %                     3.15 %
                                               
Net interest margin (2)                   3.50 %                     3.31 %
                                               
(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.  

TABLE 8. NON-GAAP FINANCIAL MEASURES (Unaudited)
(Dollars in thousands, except per share data)

    As of and for the three months ended  
    June 30,     March 31,     December 31,     September 30,     June 30,  
    2021     2021     2020     2020     2020  
                                         
Income before income taxes   $ 19,581     $ 19,346     $ 14,599     $ (93,058 )   $ 2,186  
Add: goodwill impairment                       104,831        
Less: tax effect     4,415       4,271       2,111       2,652       497  
Adjusted income   $ 15,166     $ 15,075     $ 12,488     $ 9,121     $ 1,689  
Weighted average common shares outstanding     14,356,958       14,464,291       14,760,810       15,040,407       15,209,483  
Effect of weighted average dilutive shares assuming positive net income     317,880       269,792       173,248       82,804       94,526  
Weighted average diluted shares     14,674,838       14,734,083       14,934,058       15,123,211       15,304,009  
Diluted earnings per share adjusted for goodwill impairment   $ 1.03     $ 1.02     $ 0.84     $ 0.60     $ 0.11  
                                         
Total stockholders' equity   $ 412,995     $ 397,815     $ 407,649     $ 402,172     $ 479,766  
Less: goodwill     31,601       31,601       31,601       31,601       136,432  
Less: core deposit intangibles, net     13,993       15,023       16,057       17,101       18,131  
Less: mortgage servicing asset, net                       1       2  
Less: naming rights, net     1,109       1,119       1,130       1,141       1,152  
Tangible common equity   $ 366,292     $ 350,072     $ 358,861     $ 352,328     $ 324,049  
Common shares issued at period end     14,360,172       14,383,913       14,540,556       14,853,487       15,218,301  
Diluted common shares outstanding at period end     14,664,603       14,668,287       14,756,378       14,945,282       15,334,144  
Book value per common share   $ 28.76     $ 27.66     $ 28.04     $ 27.08     $ 31.53  
Tangible book value per common share   $ 25.51     $ 24.34     $ 24.68     $ 23.72     $ 21.29  
Tangible book value per diluted common share   $ 24.98     $ 23.87     $ 24.32     $ 23.57     $ 21.13  
                                         
Total assets   $ 4,268,216     $ 4,196,184     $ 4,013,356     $ 3,865,571     $ 4,205,269  
Less: goodwill     31,601       31,601       31,601       31,601       136,432  
Less: core deposit intangibles, net     13,993       15,023       16,057       17,101       18,131  
Less: mortgage servicing asset, net                       1       2  
Less: naming rights, net     1,109       1,119       1,130       1,141       1,152  
Tangible assets   $ 4,221,513     $ 4,148,441     $ 3,964,568     $ 3,815,727     $ 4,049,552  
Total stockholders' equity to total assets     9.68 %     9.48 %     10.16 %     10.40 %     11.41 %
Tangible common equity to tangible assets     8.68 %     8.44 %     9.05 %     9.23 %     8.00 %
                                         
Total average stockholders' equity   $ 404,039     $ 395,638     $ 409,572     $ 483,088     $ 483,605  
Less: average intangible assets     47,334       48,376       54,547       154,049       156,194  
Average tangible common equity   $ 356,705     $ 347,262     $ 355,025     $ 329,039     $ 327,411  
Net income (loss) allocable to common stockholders   $ 15,166     $ 15,075     $ 12,488     $ (90,405 )   $ 1,689  
Add: goodwill impairment                       104,831        
Less: tax effect of goodwill impairment                       5,305        
Adjusted net income (loss) plus goodwill impairment     15,166       15,075       12,488       9,121       1,689  
Amortization of intangible assets     1,041       1,045       1,055       1,043       986  
Less: tax effect of intangible assets amortization     219       219       222       234       207  
Adjusted net income (loss) allocable to common stockholders   $ 15,988     $ 15,901     $ 13,321     $ 9,930     $ 2,468  
Return on total average stockholders' equity (ROAE) annualized     15.06 %     15.45 %     12.13 %     (74.45 )%     1.40 %
Return on average tangible common equity (ROATCE) annualized     17.98 %     18.57 %     14.93 %     (108.31 )%     3.03 %
Adjusted return on average tangible common equity     17.98 %     18.57 %     14.93 %     12.01 %     3.03 %
                                         
Non-interest expense   $ 25,806     $ 24,881     $ 28,460     $ 130,835     $ 23,937  
Less: merger expense     460       152       299              
Less: goodwill impairment                       104,831        
Non-interest expense, excluding merger expense and goodwill impairment   $ 25,346     $ 24,729     $ 28,161     $ 26,004     $ 23,937  
Net interest income   $ 34,630     $ 31,759     $ 35,559     $ 32,107     $ 32,891  
Non-interest income     9,100       6,712       8,500       6,485       5,732  
Less: net gain on acquisition     663       (78 )     2,145              
Less: net gains (losses) from securities transactions           17       (1 )           4  
Non-interest income, excluding gains (losses) from
securities transactions
  $ 8,437     $ 6,773     $ 6,356     $ 6,485     $ 5,728  
Net interest income plus non-interest income, excluding net gain on acquisition and net gains (losses) from securities transactions   $ 43,067     $ 38,532     $ 41,915     $ 38,592     $ 38,619  
Non-interest expense less goodwill impairment to net interest income plus non-interest income     59.01 %     64.67 %     64.60 %     67.38 %     61.98 %
Efficiency ratio     58.85 %     64.18 %     67.19 %     67.38 %     61.98 %
Net income (loss) allocable to common stockholders   $ 15,166     $ 15,075     $ 12,488     $ (90,405 )   $ 1,689  
Add: income tax provision     4,415       4,271       2,111       (2,653 )     497  
Add: provision (reversal) of credit losses     (1,657 )     (5,756 )     1,000       815       12,500  
Add: goodwill impairment                       104,831        
Adjusted net income   $ 17,924     $ 13,590     $ 15,599     $ 12,588     $ 14,686  
Total average assets   $ 4,231,439     $ 4,143,752     $ 3,910,628     $ 4,041,187     $ 4,159,336  
Total average stockholders' equity   $ 404,039     $ 395,638     $ 409,572     $ 483,088     $ 483,605  
Return on average assets (ROAA) annualized     1.44 %     1.48 %     1.27 %     (8.90 )%     0.16 %
Adjusted return on average assets     1.70 %     1.33 %     1.59 %     1.24 %     1.42 %
Adjusted return on average equity     17.79 %     13.93 %     15.15 %     10.37 %     12.21 %


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Source: Equity Bancshares, Inc.