Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “we”, “us”,
“our”), the Wichita-based holding company of Equity Bank, reported
its unaudited results for the quarter ended September 30, 2019,
including net income allocable to common stockholders of $10.4
million, or $0.66 per diluted share. Year-to-date 2019 net
income allocable to common stockholders was $15.6 million, or $0.98
per diluted share.
“I am pleased with our core earnings results in the third
quarter, and two consecutive quarters of delivering growth in
earnings per share to our stockholders,” said Brad Elliott,
Chairman and CEO of Equity. “Our Company’s focus in reducing
expenses, streamlining operations, and effectively evaluating our
processes has helped us become more efficient as a four-state,
52-location bank, with positive results to stockholders.”
“Our initiatives in building our full-service banking platform
have resulted in additional signature deposit customers in our
regions, including key business and treasury management
relationships, resulting in noninterest income growth and expansion
for our Company,” said Mr. Elliott. “Our teams throughout our
regions, including operations, customer service, credit
administration and quality care, will continue to prioritize
innovation within our products and services, efficient and
effective delivery to our markets and to maintain our focus on high
credit standards.”
On February 8, 2019, Equity completed its acquisition of two
bank locations in Guymon, Oklahoma, and one bank location in
Cordell, Oklahoma, from MidFirst Bank (“MidFirst”) of Oklahoma
City, Oklahoma (“the MidFirst acquisition”). The acquisition
added total assets of $98.6 million, which included total loans of
$6.5 million. There were total deposits of $98.5 million
assumed at the time of the acquisition. Results of operations
of the MidFirst acquisition are included in Equity’s 2019 results
of operations subsequent to the acquisition.
Notable Items:
- Net income before taxes for the third quarter of 2019 was $13.2
million, or $0.84 per diluted share, compared to net income before
taxes of $13.3 million, or $0.82 per diluted share, for the same
time period in 2018. Net income before taxes, adjusted to
exclude merger expense, was $13.2 million, or $0.84 per diluted
share, for the third quarter of 2019, compared to net income before
taxes, adjusted to exclude merger expense of $14.0 million, or
$0.87 per diluted share, for the third quarter of 2018.
- Stated diluted income per share in the third quarter of 2019
was $0.66. There were no merger expenses in the third quarter
of 2019. Stated diluted income per share for the first nine
months of 2019 was $0.98. Merger expenses, adjusted for
estimated income tax, were $694 thousand in the first nine months
of 2019, or $0.04 per diluted share.
- During the third quarter, the reserve ratio of the Deposit
Insurance Fund reached 1.40% resulting in the application of a
credit to our quarterly assessments paid to the Federal Deposit
Insurance Corporation. Application of the credit reduced
expense during the three and nine month periods ended September 30,
2019 by $505 thousand ($398 thousand after tax), a benefit of $0.03
per diluted share after tax.
- 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. As of September 30, 2019, a total of 421,016 shares
have been repurchased under this authorization at an average price
of $25.81, including 143,210 shares during the third quarter at an
average price of $25.55 per share.
Equity’s Balance Sheet Highlights:
- Total loans held for investment of $2.60 billion at September
30, 2019, as compared to total loans held for investment of $2.58
billion at December 31, 2018. The increase of $25.5 million
includes growth of $19.0 million, or 0.7%, and $6.5 million of
loans added in the MidFirst acquisition.
- Total deposits were $3.11 billion at September 30, 2019
compared to $3.12 billion at December 31, 2018. Signature
deposits, including core deposits comprised of checking accounts,
savings accounts and money market accounts, were $2.18 billion at
September 30, 2019, compared to $2.12 billion at December 31,
2018. Organic signature deposit growth was 0.7% for the nine
months ended September 30, 2019. In addition, the MidFirst
acquisition added total deposits of $98.5 million.
- Total assets of $4.07 billion at September 30, 2019, compared
to $4.06 billion at December 31, 2018. The MidFirst
acquisition added total assets of $98.6 million.
- Book value per common share of $30.25 at September 30, 2019 and
$28.87 at December 31, 2018. Tangible book value per common share
of $19.99 at September 30, 2019 and $19.08 at December 31,
2018.
Financial Results for Nine Months Ended September 30,
2019
Net income allocable to common stockholders was $15.6 million
for the nine months ended September 30, 2019, as compared to $25.9
million for the nine months ended September 30, 2018, a decrease of
$10.3 million, principally related to the non-typical specific
impairment of $14.5 million taken during the first quarter of
2019. Results of operations of the MidFirst acquisition are
included in Equity’s 2019 results of operations subsequent to the
acquisition on February 8, 2019. Equity’s financial results
also reflect results of operations of our 2018 mergers subsequent
to the merger dates. Equity Bank merged with City Bank and
Trust (“CBT”) in Guymon, Oklahoma, on August 23, 2018, and on May
4, 2018, Equity completed mergers with Kansas Bank Corporation
(“KBC”), parent company of First National Bank of Liberal/Hugoton
(“FNB”) in Liberal, Kansas and Adams Dairy Bancshares, Inc.
(“Adams”), parent company of Adams Dairy Bank in Blue Springs,
Missouri.
Diluted earnings per share were $0.98 for the nine-month period
ended September 30, 2019, as compared to $1.66 for the comparable
period of 2018. Weighted average fully diluted shares were
15,896,605 and 15,578,017 for the nine-month periods ended
September 30, 2019 and 2018.
Net interest income was $93.5 million for the nine months ended
September 30, 2019, as compared to $91.5 million for the nine
months ended September 30, 2018, an increase of $2.0 million, or a
2.2% increase. The additional net interest income was
primarily the result of interest-earning assets growing at a faster
rate than interest-bearing liabilities due to increases in
non-interest bearing deposits and capital.
Our net interest margin was 3.44% for the nine months ended
September 30, 2019, as compared to 3.86% for the nine months ended
September 30, 2018. The decrease in net interest margin was
partly due to an increase in cost of funds, a reduction in loan
fees, additional callable bond premium amortization related to the
adoption of ASU 2017-08 and the movement of a large credit
relationship to nonaccrual during the first quarter of 2019.
The provision for loan losses was $17.3 million for the nine
months ended September 30, 2019, as compared to $3.2 million for
the nine months ended September 30, 2018. In the first
quarter of 2019, we recorded a $14.5 million provision for loss
against a credit relationship and subsequently charged off a net of
$10.2 million on this credit relationship during the first nine
months of 2019. Net charge-offs for the nine months ended
September 30, 2019, were $697 thousand, exclusive of the net charge
offs related to the previously mentioned credit relationship, as
compared to net charge-offs of $699 thousand for the comparable
period in 2018.
Total non-interest income was $18.3 million for the nine months
ended September 30, 2019, as compared to $14.3 million for the nine
months ended September 30, 2018. The variance is largely
attributable to increases in debit card income, service charges and
fees, mortgage banking income and an increase in swap fees.
Non-interest income includes the increase in value of bank-owned
life insurance of $1.5 million and $1.7 million for the nine-month
periods ended September 30, 2019 and 2018.
Total non-interest expense was $74.8 million for the nine months
ended September 30, 2019, as compared to $69.2 million for the nine
months ended September 30, 2018. These results include the
effect of the May 2018 addition of five locations in southwest
Kansas plus one location in Blue Springs, Missouri; the August 2018
addition of one location in Guymon, Oklahoma; and the February 2019
acquisition of two additional locations in Guymon, Oklahoma, and
one location in Cordell, Oklahoma. In addition, the results
reflect added lending, customer service, corporate and operations
staff indirectly attributable to mergers and organic growth.
Also, data processing costs increased due to more accounts, higher
transaction volumes and our new online banking platform.
Trust and wealth management infrastructure and an increase in
professional fees contributed as well. Non-interest expense
also includes merger expenses of $915 thousand ($694 thousand after
tax) for the nine months ended September 30, 2019. Merger
expenses for the nine months ended September 30, 2018, totaled $6.5
million ($5.0 million after tax).
Equity’s effective tax rate for the nine-month period ended
September 30, 2019 was 21.0% as compared to 22.2% for the
nine-month period ended September 30, 2018. For both of the
comparable periods, the estimated annual effective tax rate at
which income tax expense was provided reflect, in addition to
statutory tax rates, the levels of tax-exempt interest income,
non-taxable life insurance income, non-deductible facilitative
merger expense and other non-deductible expense in proportion to
anticipated annual income before income taxes, as well as federal
income tax credits anticipated to be available in each annual
period.
Financial Results for Quarter Ended September 30,
2019
Net income allocable to common stockholders was $10.4 million
for the three months ended September 30, 2019, as compared to net
income allocable to common stockholders of $10.3 million for the
three months ended September 30, 2018, an increase of $84
thousand.
Diluted earnings per share were $0.66 for the three months ended
September 30, 2019, as compared to diluted earnings per share of
$0.64 for the comparable period in 2018. Weighted average
fully diluted shares were 15,708,038 and 16,136,607 for the three
months ended September 30, 2019 and 2018.
Net interest income was $31.5 million for the three months ended
September 30, 2019, as compared to $32.8 million for the three
months ended September 30, 2018, a $1.2 million, or 3.8%,
decrease. The decrease in net interest income was primarily
driven by an increase in deposit rates and an overall increase in
the average cost of funds, partially offset by an increase in the
average volume of loans.
The net interest margin was 3.42% for the three months ended
September 30, 2019, as compared to 3.76% for the three months ended
September 30, 2018. The decrease in net interest margin was
partly due to a reduction in loan fees, an overall increase in our
cost of funds and the movement of the above mentioned large credit
relationship to nonaccrual during the first quarter of 2019.
Our cost of funds has increased primarily due to higher interest
rates for both retail and public fund deposits. The cost of
retail deposits has increased as the general level of interest
rates has risen and from an increased level of market competition
for this type of deposit, which are desirable due to their lower
level of interest-rate sensitivity. The cost of public
fund deposits has increased due to the level of competition for
these deposits, from both other financial institutions and state
investment funds.
The provision for loan losses was $679 thousand for the three
months ended September 30, 2019, as compared to $1.3 million for
the three months ended September 30, 2018. For the three
months ended September 30, 2019, we had net charge-offs of $581
thousand, of which $390 thousand was related to the credit
relationship for which we provisioned $14.5 million during the
first quarter of 2019, as compared to net charge-offs of $364
thousand for the same period in 2018.
Total non-interest income for the quarter ended September 30,
2019 was $6.6 million, compared to $5.4 million for the quarter
ended September 30, 2018. This increase was largely due to
increases in debit card income, service charges and fees and an
increase in mortgage banking. The increases in debit card
income and service charges and fees are principally attributable to
the addition of accounts and higher transaction volumes.
Non-interest income includes the increase in value of bank-owned
life insurance of $507 thousand and $521 thousand for the
three-month periods ended September 30, 2019 and 2018.
Total non-interest expense was $24.2 million for the quarter
ended September 30, 2019, compared to $23.6 million for the quarter
ended September 30, 2018. The increase in non-interest
expense is due largely to increases in salaries and employee
benefits, professional fees and data processing, partially offset
by decreases in merger expenses, FDIC insurance expense and loan
expense. The results reflect added lending, customer service,
corporate and operations staff indirectly attributable to mergers
and organic growth plus increased data processing costs due to more
accounts, higher transaction volumes along with our new online
banking platform and trust and wealth management infrastructure and
an increase in professional fees. Non-interest expense does
not include any merger expenses for the three months ended
September 30, 2019. Merger expenses for the three months
ended September 30, 2018, totaled $757 thousand ($581 thousand
after tax). During the third quarter of 2019, Equity received
a credit of $505 thousand that reduced the quarterly assessments
paid to the Federal Deposit Insurance Corporation.
Equity’s effective tax rate for the quarter ended September 30,
2019 was 21.1% as compared to 22.1% for the quarter ended September
30, 2018.
Loans, Deposits and Total Assets
Loans held for investment were $2.60 billion at September 30,
2019, as compared to $2.58 billion at December 31, 2018, an
increase of $25.5 million. The increase in loans held for
investment includes $6.5 million of net loans acquired in the
February 2019 MidFirst acquisition plus $19.0 million of additional
loan growth.
As of September 30, 2019, Equity’s allowance for loan losses to
total loans was 0.69%, as compared to 0.44% at December 31,
2018. Total reserves, including purchase discounts, to total
loans were approximately 1.14% as of September 30, 2019, as
compared to 1.02% at December 31, 2018. Nonperforming assets
of $57.1 million as of September 30, 2019, were 1.40% of total
assets. Nonperforming assets at December 31, 2018, were $39.6
million or 0.98% of total assets.
Total deposits were $3.11 billion at September 30, 2019, as
compared to $3.12 billion at December 31, 2018. Total
deposits decreased $16.5 million between December 31, 2018 and
September 30, 2019. This decrease included a $128.9 million
decrease in organic time deposits and a $28.3 million decrease in
organic demand deposits, partially offset by $98.5 million assumed
in the MidFirst acquisition and a $42.1 million increase in organic
savings, NOW and money market deposits. Signature deposits
were $2.18 billion at September 30, 2019, as compared to $2.12
billion at December 31, 2018.
At September 30, 2019, Equity had consolidated total assets of
$4.07 billion, as compared to $4.06 billion at December 31, 2018,
an increase of $12.9 million. The increase in total assets
includes $98.6 million of total assets acquired in the MidFirst
acquisition.
Borrowings and Capital
At September 30, 2019, borrowings totaled $480.0 million, as
compared to $464.7 million at December 31, 2018. The increase
in borrowings was principally due to a $25.2 million increase in
Federal Home Loan Bank advances, partially offset by a $9.4 million
reduction in federal funds purchased and retail repurchase
agreements.
At September 30, 2019, common stockholders’ equity totaled
$467.1 million, $30.25 per common share, compared to $455.9
million, $28.87 per common share, at December 31, 2018.
Tangible common equity was $308.7 million and tangible book value
per common share was $19.99 at September 30, 2019. Tangible
common equity was $301.3 million and tangible book value per common
share was $19.08 at December 31, 2018. During the second and
third quarters of 2019, the company repurchased a total of 421,016
shares of our Class A Voting Common Stock at a total cost of $10.9
million, or $25.81 per share. The ratio of common equity tier
1 capital to risk-weighted assets was approximately 11.05% and the
total capital to risk-weighted assets was approximately 12.19% at
September 30, 2019.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures
intended to supplement, not substitute for, comparable GAAP
measures. Reconciliations of non-GAAP financial measures to GAAP
financial measures are provided at the end of this press
release.
Conference Call and Webcast
Equity Chairman and Chief Executive Officer, Brad Elliott, and
Chief Financial Officer, Greg Kossover, will hold a conference call
and webcast to discuss third quarter 2019 results on Tuesday,
October 22, 2019 at 10 a.m. eastern time, 9:00 a.m. central
time.
Investors, news media and other participants should register for
the call or audio webcast at investor.equitybank.com. On Tuesday,
October 22, 2019, participants may also dial into the call
toll-free at (844) 534-7311 from anywhere in the U.S. or (574)
990-1419 internationally, using conference ID no. 6064137.
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 October 29, 2019, accessible
at (855) 859-2056 with conference ID no. 6064137 at
investor.equitybank.com.
About Equity Bancshares, Inc.
Equity Bancshares, Inc. is the holding company for Equity Bank,
offering a full range of financial solutions, including commercial
loans, consumer banking, mortgage loans, trust and wealth
management services and treasury management services, while
delivering the high-quality, relationship-based customer service of
a community bank. Equity’s common stock is traded on the NASDAQ
Global Select Market under the symbol “EQBK.” Learn more at
www.equitybank.com.
No Offer or Solicitation
This press release shall not constitute an offer
to sell, a solicitation of an offer to sell, or the solicitation or
an offer to buy any securities. There will be no sale of securities
in any jurisdiction in which such an offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. No offer of securities
shall be made except by means of a prospectus meeting the
requirement of Section 10 of the Securities Act of 1933, as
amended.
Special Note Concerning Forward-Looking
Statements
This press release contains “forward-looking
statements” within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements reflect
the current views of Equity’s management with respect to, among
other things, future events and Equity’s financial performance.
These statements are often, but not always, made through the use of
words or phrases such as “may,” “should,” “could,” “predict,”
“potential,” “believe,” “will likely result,” “expect,” “continue,”
“will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,”
“project,” “forecast,” “goal,” “target,” “would” and “outlook,” or
the negative variations of those words or other comparable words of
a future or forward-looking nature. These forward-looking
statements are not historical facts, and are based on current
expectations, estimates and projections about Equity’s industry,
management’s beliefs and certain assumptions made by management,
many of which, by their nature, are inherently uncertain and beyond
Equity’s control. Accordingly, Equity cautions you that any such
forward-looking statements are not guarantees of future performance
and are subject to risks, assumptions and uncertainties that are
difficult to predict. Although Equity believes that the
expectations reflected in these forward-looking statements are
reasonable as of the date made, actual results may prove to be
materially different from the results expressed or implied by the
forward-looking statements. Factors that could cause actual
results to differ materially from Equity’s expectations include
competition from other financial institutions and bank holding
companies; the effects of and changes in trade, monetary and fiscal
policies and laws, including interest rate policies of the Federal
Reserve Board; changes in the demand for loans; fluctuations in
value of collateral and loan reserves; inflation, interest rate,
market and monetary fluctuations; changes in consumer spending,
borrowing and savings habits; and acquisitions and integration of
acquired businesses; and similar variables. The foregoing list of
factors is not exhaustive.
For discussion of these and other risks that may cause actual
results to differ from expectations, please refer to “Cautionary
Note Regarding Forward-Looking Statements” and “Risk Factors” in
Equity’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 20, 2019 and any updates to those risk
factors set forth in Equity’s subsequent Quarterly Reports on Form
10-Q or Current Reports on Form 8-K. If one or more events related
to these or other risks or uncertainties materialize, or if
Equity’s underlying assumptions prove to be incorrect, actual
results may differ materially from what Equity anticipates.
Accordingly, you should not place undue reliance on any such
forward-looking statements. Any forward-looking statement speaks
only as of the date on which it is made, and Equity does not
undertake any obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise. New risks and uncertainties arise
from time to time, and it is not possible for us to predict those
events or how they may affect us. In addition, Equity cannot assess
the impact of each factor on Equity’s business or the extent to
which any factor, or combination of factors, may cause actual
results to differ materially from those contained in any
forward-looking statements. All forward-looking statements,
expressed or implied, included in this press release are expressly
qualified in their entirety by this cautionary statement. This
cautionary statement should also be considered in connection with
any subsequent written or oral forward-looking statements that
Equity or persons acting on Equity’s behalf may issue.
Investor Contact:
Chris NavratilSVP, FinanceEquity Bancshares, Inc.(316)
612-6014cnavratil@equitybank.com
Media Contact:
John J. HanleySVP, Senior Director of MarketingEquity
Bancshares, Inc.(816) 505-4063jhanley@equitybank.com
Unaudited Financial Tables
- Table 1. Selected Financial Highlights
- Table 2. Year-to-Date Analysis of Changes in
Net Interest Income
- Table 3. Quarterly Analysis of Changes in Net
Interest Income
- Table 4. Consolidated Balance Sheets
- Table 5. Consolidated Statements of
Income
- Table 6. Non-GAAP Financial Measures
TABLE 1. SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)(Dollars in thousands, except per share data)
|
|
As of and for the three months ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
Statement of Income Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
31,526 |
|
|
$ |
31,288 |
|
|
$ |
30,639 |
|
|
$ |
33,336 |
|
|
$ |
32,755 |
|
Provision for loan losses |
|
|
679 |
|
|
|
974 |
|
|
|
15,646 |
|
|
|
750 |
|
|
|
1,291 |
|
Net gains (losses) from securities transactions |
|
|
4 |
|
|
|
7 |
|
|
|
6 |
|
|
|
5 |
|
|
|
(4 |
) |
Other non-interest income |
|
|
6,568 |
|
|
|
6,444 |
|
|
|
5,318 |
|
|
|
5,444 |
|
|
|
5,437 |
|
Total non-interest income |
|
|
6,572 |
|
|
|
6,451 |
|
|
|
5,324 |
|
|
|
5,449 |
|
|
|
5,433 |
|
Merger expense |
|
— |
|
|
|
276 |
|
|
|
639 |
|
|
|
938 |
|
|
|
757 |
|
Other non-interest expense |
|
|
24,223 |
|
|
|
24,747 |
|
|
|
24,904 |
|
|
|
24,200 |
|
|
|
22,890 |
|
Total non-interest expense |
|
|
24,223 |
|
|
|
25,023 |
|
|
|
25,543 |
|
|
|
25,138 |
|
|
|
23,647 |
|
Income (loss) before income taxes |
|
|
13,196 |
|
|
|
11,742 |
|
|
|
(5,226 |
) |
|
|
12,897 |
|
|
|
13,250 |
|
Provision for income taxes (benefits) |
|
|
2,790 |
|
|
|
2,510 |
|
|
|
(1,153 |
) |
|
|
2,972 |
|
|
|
2,928 |
|
Net income (loss) |
|
|
10,406 |
|
|
|
9,232 |
|
|
|
(4,073 |
) |
|
|
9,925 |
|
|
|
10,322 |
|
Net income (loss) allocable to common stockholders |
|
|
10,406 |
|
|
|
9,232 |
|
|
|
(4,073 |
) |
|
|
9,925 |
|
|
|
10,322 |
|
Basic earnings (loss) per share |
|
|
0.67 |
|
|
|
0.59 |
|
|
|
(0.26 |
) |
|
|
0.63 |
|
|
|
0.65 |
|
Diluted earnings (loss) per share |
|
|
0.66 |
|
|
|
0.58 |
|
|
|
(0.26 |
) |
|
|
0.62 |
|
|
|
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet Data (at
period end) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
|
$ |
152,680 |
|
|
$ |
161,082 |
|
|
$ |
166,355 |
|
|
$ |
168,875 |
|
|
$ |
172,388 |
|
Held-to-maturity securities |
|
|
764,163 |
|
|
|
766,950 |
|
|
|
749,493 |
|
|
|
748,356 |
|
|
|
713,899 |
|
Gross loans held for investment |
|
|
2,600,924 |
|
|
|
2,679,985 |
|
|
|
2,618,986 |
|
|
|
2,575,408 |
|
|
|
2,598,729 |
|
Allowance for loan losses |
|
|
17,875 |
|
|
|
17,777 |
|
|
|
26,340 |
|
|
|
11,454 |
|
|
|
11,010 |
|
Intangible assets, net |
|
|
158,350 |
|
|
|
159,147 |
|
|
|
159,944 |
|
|
|
154,665 |
|
|
|
155,430 |
|
Total assets |
|
|
4,074,663 |
|
|
|
4,180,074 |
|
|
|
4,065,354 |
|
|
|
4,061,716 |
|
|
|
3,931,036 |
|
Total deposits |
|
|
3,106,929 |
|
|
|
3,185,893 |
|
|
|
3,260,870 |
|
|
|
3,123,447 |
|
|
|
2,821,246 |
|
Non-time deposits |
|
|
2,177,820 |
|
|
|
2,192,534 |
|
|
|
2,220,110 |
|
|
|
2,115,541 |
|
|
|
1,969,715 |
|
Borrowings |
|
|
480,000 |
|
|
|
515,582 |
|
|
|
331,221 |
|
|
|
464,676 |
|
|
|
652,755 |
|
Total liabilities |
|
|
3,607,613 |
|
|
|
3,721,668 |
|
|
|
3,611,891 |
|
|
|
3,605,775 |
|
|
|
3,487,799 |
|
Total stockholders’ equity |
|
|
467,050 |
|
|
|
458,406 |
|
|
|
453,463 |
|
|
|
455,941 |
|
|
|
443,237 |
|
Tangible common equity* |
|
|
308,700 |
|
|
|
299,259 |
|
|
|
293,519 |
|
|
|
301,276 |
|
|
|
287,807 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Average Balance
Sheet Data (quarterly average) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
926,839 |
|
|
$ |
924,914 |
|
|
$ |
918,804 |
|
|
$ |
893,642 |
|
|
$ |
860,940 |
|
Total gross loans receivable |
|
|
2,646,454 |
|
|
|
2,655,256 |
|
|
|
2,560,030 |
|
|
|
2,590,610 |
|
|
|
2,516,833 |
|
Interest-earnings assets |
|
|
3,657,970 |
|
|
|
3,665,618 |
|
|
|
3,560,815 |
|
|
|
3,578,487 |
|
|
|
3,457,871 |
|
Total assets |
|
|
4,030,606 |
|
|
|
4,025,764 |
|
|
|
3,926,359 |
|
|
|
3,935,722 |
|
|
|
3,804,114 |
|
Interest-bearing deposits |
|
|
2,673,007 |
|
|
|
2,726,443 |
|
|
|
2,709,596 |
|
|
|
2,501,227 |
|
|
|
2,251,937 |
|
Borrowings |
|
|
390,562 |
|
|
|
347,103 |
|
|
|
269,492 |
|
|
|
480,417 |
|
|
|
642,575 |
|
Total interest-bearing liabilities |
|
|
3,063,569 |
|
|
|
3,073,546 |
|
|
|
2,979,088 |
|
|
|
2,981,644 |
|
|
|
2,894,512 |
|
Total deposits |
|
|
3,152,785 |
|
|
|
3,200,624 |
|
|
|
3,178,164 |
|
|
|
2,991,657 |
|
|
|
2,709,741 |
|
Total liabilities |
|
|
3,567,354 |
|
|
|
3,568,661 |
|
|
|
3,466,646 |
|
|
|
3,486,272 |
|
|
|
3,364,343 |
|
Total stockholders' equity |
|
|
463,252 |
|
|
|
457,103 |
|
|
|
459,713 |
|
|
|
449,450 |
|
|
|
439,771 |
|
Tangible common equity* |
|
|
304,492 |
|
|
|
297,541 |
|
|
|
302,398 |
|
|
|
294,506 |
|
|
|
289,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (ROAA) annualized |
|
|
1.02 |
% |
|
|
0.92 |
% |
|
|
(0.42 |
)% |
|
|
1.00 |
% |
|
|
1.08 |
% |
Return on average equity (ROAE) annualized |
|
|
8.91 |
% |
|
|
8.10 |
% |
|
|
(3.59 |
)% |
|
|
8.76 |
% |
|
|
9.31 |
% |
Return on average tangible common equity (ROATCE) annualized* |
|
|
14.38 |
% |
|
|
13.29 |
% |
|
|
(4.62 |
)% |
|
|
14.17 |
% |
|
|
14.91 |
% |
Yield on loans annualized |
|
|
5.70 |
% |
|
|
5.74 |
% |
|
|
5.79 |
% |
|
|
5.91 |
% |
|
|
5.73 |
% |
Cost of interest-bearing deposits annualized |
|
|
1.56 |
% |
|
|
1.64 |
% |
|
|
1.61 |
% |
|
|
1.45 |
% |
|
|
1.15 |
% |
Cost of total deposits annualized |
|
|
1.32 |
% |
|
|
1.40 |
% |
|
|
1.37 |
% |
|
|
1.21 |
% |
|
|
0.95 |
% |
Net interest margin annualized |
|
|
3.42 |
% |
|
|
3.42 |
% |
|
|
3.49 |
% |
|
|
3.70 |
% |
|
|
3.76 |
% |
Efficiency ratio* |
|
|
63.59 |
% |
|
|
65.59 |
% |
|
|
69.26 |
% |
|
|
62.40 |
% |
|
|
59.93 |
% |
Non-interest income / average assets |
|
|
0.65 |
% |
|
|
0.64 |
% |
|
|
0.55 |
% |
|
|
0.55 |
% |
|
|
0.57 |
% |
Non-interest expense / average assets |
|
|
2.38 |
% |
|
|
2.49 |
% |
|
|
2.64 |
% |
|
|
2.53 |
% |
|
|
2.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Ratio |
|
|
8.48 |
% |
|
|
8.26 |
% |
|
|
8.37 |
% |
|
|
8.60 |
% |
|
|
8.60 |
% |
Common Equity Tier 1 Capital Ratio |
|
|
11.05 |
% |
|
|
10.46 |
% |
|
|
10.46 |
% |
|
|
10.95 |
% |
|
|
10.49 |
% |
Tier 1 Risk Based Capital Ratio |
|
|
11.56 |
% |
|
|
10.95 |
% |
|
|
10.96 |
% |
|
|
11.45 |
% |
|
|
10.99 |
% |
Total Risk Based Capital Ratio |
|
|
12.19 |
% |
|
|
11.56 |
% |
|
|
11.87 |
% |
|
|
11.86 |
% |
|
|
11.37 |
% |
Total stockholders' equity to total assets |
|
|
11.46 |
% |
|
|
10.97 |
% |
|
|
11.15 |
% |
|
|
11.23 |
% |
|
|
11.28 |
% |
Tangible common equity to tangible assets* |
|
|
7.88 |
% |
|
|
7.44 |
% |
|
|
7.52 |
% |
|
|
7.71 |
% |
|
|
7.62 |
% |
Book value per common share |
|
$ |
30.25 |
|
|
$ |
29.45 |
|
|
$ |
28.66 |
|
|
$ |
28.87 |
|
|
$ |
28.07 |
|
Tangible book value per common share* |
|
$ |
19.99 |
|
|
$ |
19.23 |
|
|
$ |
18.55 |
|
|
$ |
19.08 |
|
|
$ |
18.22 |
|
Tangible book value per diluted common share* |
|
$ |
19.73 |
|
|
$ |
18.99 |
|
|
$ |
18.30 |
|
|
$ |
18.73 |
|
|
$ |
17.86 |
|
* The value noted is considered a Non-GAAP financial
measure. For a reconciliation of Non-GAAP financial measures,
see Table 6. Non-GAAP Financial Measures TABLE 2.
YEAR-TO-DATE ANALYSIS OF CHANGES IN NET INTEREST INCOME
(Unaudited)(Dollars in thousands)
|
For the nine months ended |
|
|
For the nine months ended |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
Average Outstanding Balance |
|
Interest Income/
Expense |
|
Average Yield/ Rate (3)
(4) |
|
|
Average Outstanding Balance |
|
Interest Income/
Expense |
|
Average Yield/ Rate (3)
(4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
$ |
2,620,897 |
|
$ |
112,611 |
|
5.74 |
% |
|
$ |
2,320,402 |
|
$ |
98,484 |
|
|
5.67 |
% |
Total securities |
|
923,548 |
|
|
17,867 |
|
2.59 |
% |
|
|
776,271 |
|
|
15,672 |
|
|
2.70 |
% |
Federal funds sold and other |
|
84,045 |
|
|
2,037 |
|
3.24 |
% |
|
|
72,102 |
|
|
1,820 |
|
|
3.38 |
% |
Total interest-earning assets |
|
3,628,490 |
|
|
132,515 |
|
4.88 |
% |
|
|
3,168,775 |
|
|
115,976 |
|
|
4.89 |
% |
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
1,705,612 |
|
|
16,914 |
|
1.33 |
% |
|
|
1,359,657 |
|
|
8,155 |
|
|
0.80 |
% |
Certificates of deposit |
|
997,270 |
|
|
15,467 |
|
2.07 |
% |
|
|
789,133 |
|
|
8,411 |
|
|
1.43 |
% |
Total interest-bearing deposits |
|
2,702,882 |
|
|
32,381 |
|
1.60 |
% |
|
|
2,148,790 |
|
|
16,566 |
|
|
1.03 |
% |
FHLB advances & LOC |
|
266,118 |
|
|
5,103 |
|
2.56 |
% |
|
|
442,370 |
|
|
6,548 |
|
|
1.98 |
% |
Other borrowings |
|
70,044 |
|
|
1,578 |
|
3.01 |
% |
|
|
67,644 |
|
|
1,400 |
|
|
2.77 |
% |
Total interest-bearing liabilities |
|
3,039,044 |
|
|
39,062 |
|
1.72 |
% |
|
|
2,658,804 |
|
|
24,514 |
|
|
1.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
93,453 |
|
|
|
|
|
|
|
$ |
91,462 |
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
|
|
|
3.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
3.44 |
% |
|
|
|
|
|
|
|
|
3.86 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 nine months ended |
|
|
September 30, 2019 vs. 2018 |
|
|
Total Increase/(Decrease) |
|
|
Volume Variance (1) |
|
Yield/Rate Variance (1) |
|
Total Variance |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
Loans |
$ |
12,897 |
|
$ |
1,230 |
|
$ |
14,127 |
|
Total securities |
|
2,835 |
|
|
(640 |
) |
|
2,195 |
|
Federal funds sold and other |
|
292 |
|
|
(75 |
) |
|
217 |
|
Total interest-earning assets |
|
16,024 |
|
|
515 |
|
|
16,539 |
|
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
2,485 |
|
|
6,274 |
|
|
8,759 |
|
Certificates of deposit |
|
2,589 |
|
|
4,467 |
|
|
7,056 |
|
Total interest-bearing deposits |
|
5,074 |
|
|
10,741 |
|
|
15,815 |
|
FHLB advances & LOC |
|
(3,052 |
) |
|
1,607 |
|
|
(1,445 |
) |
Other borrowings |
|
43 |
|
|
135 |
|
|
178 |
|
Total interest-bearing liabilities |
|
2,065 |
|
|
12,483 |
|
|
14,548 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
13,959 |
|
$ |
(11,968 |
) |
$ |
1,991 |
|
|
|
|
|
|
|
|
|
|
|
(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. |
TABLE 3. QUARTERLY ANALYSIS OF CHANGES IN NET INTEREST
INCOME (Unaudited)(Dollars in thousands)
|
For the three months ended |
|
|
For the three months ended |
|
|
September 30, 2019 |
|
|
September 30, 2018 |
|
|
Average Outstanding Balance |
|
Interest Income/ Expense |
|
Average Yield/ Rate (3) (4) |
|
|
Average Outstanding Balance |
|
Interest Income/ Expense |
|
Average Yield/ Rate (3) (4) |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (1) |
$ |
2,646,454 |
|
$ |
38,051 |
|
5.70 |
% |
|
$ |
2,516,833 |
|
$ |
36,335 |
|
5.73 |
% |
Total securities |
|
926,839 |
|
|
5,718 |
|
2.45 |
% |
|
|
860,940 |
|
|
5,933 |
|
2.73 |
% |
Federal funds sold and other |
|
84,677 |
|
|
780 |
|
3.66 |
% |
|
|
80,098 |
|
|
754 |
|
3.74 |
% |
Total interest-earning assets |
|
3,657,970 |
|
|
44,549 |
|
4.83 |
% |
|
|
3,457,871 |
|
|
43,022 |
|
4.94 |
% |
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
1,707,459 |
|
|
5,389 |
|
1.25 |
% |
|
|
1,438,616 |
|
|
3,342 |
|
0.92 |
% |
Certificates of deposit |
|
965,548 |
|
|
5,118 |
|
2.10 |
% |
|
|
813,321 |
|
|
3,168 |
|
1.55 |
% |
Total interest-bearing
deposits |
|
2,673,007 |
|
|
10,507 |
|
1.56 |
% |
|
|
2,251,937 |
|
|
6,510 |
|
1.15 |
% |
FHLB advances & LOC |
|
320,528 |
|
|
1,957 |
|
2.42 |
% |
|
|
565,715 |
|
|
3,155 |
|
2.21 |
% |
Other borrowings |
|
70,034 |
|
|
559 |
|
3.16 |
% |
|
|
76,860 |
|
|
602 |
|
3.11 |
% |
Total interest-bearing liabilities |
|
3,063,569 |
|
|
13,023 |
|
1.69 |
% |
|
|
2,894,512 |
|
|
10,267 |
|
1.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
$ |
31,526 |
|
|
|
|
|
|
|
$ |
32,755 |
|
|
|
Interest rate spread |
|
|
|
|
|
|
3.14 |
% |
|
|
|
|
|
|
|
3.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (2) |
|
|
|
|
|
|
3.42 |
% |
|
|
|
|
|
|
|
3.76 |
% |
(1) Average loan balances include nonaccrual
loans. |
(2) Net interest margin is calculated by dividing
annualized net interest income by average interest-earning assets
for the period. |
(3) Tax exempt income is not included in the above
table on a tax-equivalent basis. |
(4) Actual unrounded values are used to calculate
the reported yield or rate disclosed. Accordingly,
recalculations using the amounts in thousands as disclosed in this
report may not produce the same amounts. |
|
|
For the three months ended |
|
|
September 30, 2019 vs. 2018 |
|
|
Total Increase/(Decrease) |
|
|
Volume Variance (1) |
|
Yield/Rate Variance (1) |
|
Total Variance |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
Loans |
$ |
1,864 |
|
$ |
(148 |
) |
$ |
1,716 |
|
Total securities |
|
421 |
|
|
(636 |
) |
|
(215 |
) |
Federal funds sold and other |
|
42 |
|
|
(16 |
) |
|
26 |
|
Total interest-earning assets |
|
2,327 |
|
|
(800 |
) |
|
1,527 |
|
Interest-bearing
liabilities |
|
|
|
|
|
|
|
|
|
Total interest-bearing demand and savings |
|
726 |
|
|
1,321 |
|
|
2,047 |
|
Certificates of deposit |
|
666 |
|
|
1,284 |
|
|
1,950 |
|
Total interest-bearing
deposits |
|
1,392 |
|
|
2,605 |
|
|
3,997 |
|
FHLB advances & LOC |
|
(1,474 |
) |
|
276 |
|
|
(1,198 |
) |
Other borrowings |
|
(73 |
) |
|
30 |
|
|
(43 |
) |
Total interest-bearing liabilities |
|
(155 |
) |
|
2,911 |
|
|
2,756 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
2,482 |
|
$ |
(3,711 |
) |
$ |
(1,229 |
) |
|
|
|
|
|
|
|
|
|
|
(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. |
TABLE 4. CONSOLIDATED BALANCE SHEETS
(Unaudited) (Dollars in thousands)
|
|
September 30, |
|
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
167,895 |
|
|
$ |
192,735 |
|
Federal funds sold |
|
|
158 |
|
|
|
83 |
|
Cash and cash equivalents |
|
|
168,053 |
|
|
|
192,818 |
|
Interest-bearing time deposits in
other banks |
|
|
3,497 |
|
|
|
4,991 |
|
Available-for-sale
securities |
|
|
152,680 |
|
|
|
168,875 |
|
Held-to-maturity securities, fair
value of $778,966 and $739,989 |
|
|
764,163 |
|
|
|
748,356 |
|
Loans held for sale |
|
|
8,784 |
|
|
|
2,972 |
|
Loans, net of allowance for loan
losses of $17,875 and $11,454 |
|
|
2,583,049 |
|
|
|
2,563,954 |
|
Other real estate owned, net |
|
|
5,944 |
|
|
|
6,372 |
|
Premises and equipment, net |
|
|
84,481 |
|
|
|
80,442 |
|
Bank-owned life insurance |
|
|
74,599 |
|
|
|
73,105 |
|
Federal Reserve Bank and Federal
Home Loan Bank stock |
|
|
31,710 |
|
|
|
29,214 |
|
Interest receivable |
|
|
16,994 |
|
|
|
17,372 |
|
Goodwill |
|
|
136,432 |
|
|
|
131,712 |
|
Core deposit intangibles,
net |
|
|
20,727 |
|
|
|
21,725 |
|
Other |
|
|
23,550 |
|
|
|
19,808 |
|
Total assets |
|
$ |
4,074,663 |
|
|
$ |
4,061,716 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
Demand |
|
$ |
488,214 |
|
|
$ |
503,831 |
|
Total non-interest-bearing deposits |
|
|
488,214 |
|
|
|
503,831 |
|
Savings, NOW and money market |
|
|
1,689,606 |
|
|
|
1,611,710 |
|
Time |
|
|
929,109 |
|
|
|
1,007,906 |
|
Total interest-bearing deposits |
|
|
2,618,715 |
|
|
|
2,619,616 |
|
Total deposits |
|
|
3,106,929 |
|
|
|
3,123,447 |
|
Federal funds purchased and
retail repurchase agreements |
|
|
40,652 |
|
|
|
50,068 |
|
Federal Home Loan Bank
advances |
|
|
410,093 |
|
|
|
384,898 |
|
Bank stock loan |
|
|
14,770 |
|
|
|
15,450 |
|
Subordinated debentures |
|
|
14,485 |
|
|
|
14,260 |
|
Contractual obligations |
|
|
3,744 |
|
|
|
3,965 |
|
Interest payable and other
liabilities |
|
|
16,940 |
|
|
|
13,687 |
|
Total liabilities |
|
|
3,607,613 |
|
|
|
3,605,775 |
|
Commitments and contingent
liabilities |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock |
|
|
174 |
|
|
|
173 |
|
Additional paid-in capital |
|
|
382,155 |
|
|
|
379,085 |
|
Retained earnings |
|
|
115,743 |
|
|
|
101,326 |
|
Accumulated other comprehensive loss |
|
|
(423 |
) |
|
|
(4,867 |
) |
Employee stock loans |
|
|
(77 |
) |
|
|
(121 |
) |
Treasury stock |
|
|
(30,522 |
) |
|
|
(19,655 |
) |
Total stockholders’ equity |
|
|
467,050 |
|
|
|
455,941 |
|
Total liabilities and stockholders’ equity |
|
$ |
4,074,663 |
|
|
$ |
4,061,716 |
|
TABLE 5. CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)(Dollars in thousands, except per share data)
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Interest and dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
38,051 |
|
|
$ |
36,335 |
|
|
$ |
112,611 |
|
|
$ |
98,484 |
|
Securities, taxable |
|
|
4,673 |
|
|
|
4,836 |
|
|
|
14,724 |
|
|
|
12,671 |
|
Securities, nontaxable |
|
|
1,045 |
|
|
|
1,097 |
|
|
|
3,143 |
|
|
|
3,001 |
|
Federal funds sold and other |
|
|
780 |
|
|
|
754 |
|
|
|
2,037 |
|
|
|
1,820 |
|
Total interest and dividend income |
|
|
44,549 |
|
|
|
43,022 |
|
|
|
132,515 |
|
|
|
115,976 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
10,507 |
|
|
|
6,510 |
|
|
|
32,381 |
|
|
|
16,566 |
|
Federal funds purchased and retail repurchase agreements |
|
|
50 |
|
|
|
30 |
|
|
|
116 |
|
|
|
77 |
|
Federal Home Loan Bank advances |
|
|
1,957 |
|
|
|
3,155 |
|
|
|
5,103 |
|
|
|
6,548 |
|
Bank stock loan |
|
|
198 |
|
|
|
265 |
|
|
|
507 |
|
|
|
448 |
|
Subordinated debentures |
|
|
311 |
|
|
|
307 |
|
|
|
955 |
|
|
|
875 |
|
Total interest expense |
|
|
13,023 |
|
|
|
10,267 |
|
|
|
39,062 |
|
|
|
24,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
31,526 |
|
|
|
32,755 |
|
|
|
93,453 |
|
|
|
91,462 |
|
Provision for loan losses |
|
|
679 |
|
|
|
1,291 |
|
|
|
17,299 |
|
|
|
3,211 |
|
Net interest income after
provision for loan losses |
|
|
30,847 |
|
|
|
31,464 |
|
|
|
76,154 |
|
|
|
88,251 |
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges and fees |
|
|
2,268 |
|
|
|
1,912 |
|
|
|
6,431 |
|
|
|
5,221 |
|
Debit card income |
|
|
2,205 |
|
|
|
1,667 |
|
|
|
6,129 |
|
|
|
4,442 |
|
Mortgage banking |
|
|
820 |
|
|
|
392 |
|
|
|
1,699 |
|
|
|
1,017 |
|
Increase in value of bank-owned life insurance |
|
|
506 |
|
|
|
521 |
|
|
|
1,493 |
|
|
|
1,681 |
|
Net gains (losses) from securities transactions |
|
|
4 |
|
|
|
(4 |
) |
|
|
17 |
|
|
|
(14 |
) |
Other |
|
|
769 |
|
|
|
945 |
|
|
|
2,578 |
|
|
|
1,929 |
|
Total non-interest income |
|
|
6,572 |
|
|
|
5,433 |
|
|
|
18,347 |
|
|
|
14,276 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
|
13,039 |
|
|
|
12,361 |
|
|
|
40,204 |
|
|
|
34,881 |
|
Net occupancy and equipment |
|
|
2,177 |
|
|
|
2,125 |
|
|
|
6,332 |
|
|
|
5,938 |
|
Data processing |
|
|
2,673 |
|
|
|
2,195 |
|
|
|
7,436 |
|
|
|
5,837 |
|
Professional fees |
|
|
991 |
|
|
|
686 |
|
|
|
3,375 |
|
|
|
2,245 |
|
Advertising and business development |
|
|
806 |
|
|
|
802 |
|
|
|
2,174 |
|
|
|
2,086 |
|
Telecommunications |
|
|
523 |
|
|
|
451 |
|
|
|
1,593 |
|
|
|
1,252 |
|
FDIC insurance |
|
|
111 |
|
|
|
457 |
|
|
|
1,119 |
|
|
|
1,211 |
|
Courier and postage |
|
|
352 |
|
|
|
321 |
|
|
|
1,020 |
|
|
|
879 |
|
Free nationwide ATM cost |
|
|
459 |
|
|
|
364 |
|
|
|
1,240 |
|
|
|
986 |
|
Amortization of core deposit intangibles |
|
|
784 |
|
|
|
694 |
|
|
|
2,348 |
|
|
|
1,703 |
|
Loan expense |
|
|
165 |
|
|
|
319 |
|
|
|
608 |
|
|
|
810 |
|
Other real estate owned |
|
|
(88 |
) |
|
|
355 |
|
|
|
326 |
|
|
|
(48 |
) |
Merger expenses |
|
|
— |
|
|
|
757 |
|
|
|
915 |
|
|
|
6,524 |
|
Other |
|
|
2,231 |
|
|
|
1,760 |
|
|
|
6,099 |
|
|
|
4,945 |
|
Total non-interest expense |
|
|
24,223 |
|
|
|
23,647 |
|
|
|
74,789 |
|
|
|
69,249 |
|
Income before income tax |
|
|
13,196 |
|
|
|
13,250 |
|
|
|
19,712 |
|
|
|
33,278 |
|
Provision for income taxes |
|
|
2,790 |
|
|
|
2,928 |
|
|
|
4,147 |
|
|
|
7,378 |
|
Net income and net income
allocable to common stockholders |
|
$ |
10,406 |
|
|
$ |
10,322 |
|
|
$ |
15,565 |
|
|
$ |
25,900 |
|
Basic earnings per share |
|
$ |
0.67 |
|
|
$ |
0.65 |
|
|
$ |
0.99 |
|
|
$ |
1.70 |
|
Diluted earnings per share |
|
$ |
0.66 |
|
|
$ |
0.64 |
|
|
$ |
0.98 |
|
|
$ |
1.66 |
|
TABLE 6. Non-GAAP Financial Measures
(Unaudited)(Dollars in thousands, except per share data)
|
|
As of and for the three months ended |
|
|
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
|
|
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
|
Total stockholders' equity |
|
$ |
467,050 |
|
|
$ |
458,406 |
|
|
$ |
453,463 |
|
|
$ |
455,941 |
|
|
$ |
443,237 |
|
Less: goodwill |
|
|
136,432 |
|
|
|
136,432 |
|
|
|
136,432 |
|
|
|
131,712 |
|
|
|
131,723 |
|
Less: core deposit intangibles,
net |
|
|
20,727 |
|
|
|
21,512 |
|
|
|
22,296 |
|
|
|
21,725 |
|
|
|
22,466 |
|
Less: mortgage servicing asset,
net |
|
|
7 |
|
|
|
8 |
|
|
|
10 |
|
|
|
11 |
|
|
|
13 |
|
Less: naming rights, net |
|
|
1,184 |
|
|
|
1,195 |
|
|
|
1,206 |
|
|
|
1,217 |
|
|
|
1,228 |
|
Tangible common equity |
|
$ |
308,700 |
|
|
$ |
299,259 |
|
|
$ |
293,519 |
|
|
$ |
301,276 |
|
|
$ |
287,807 |
|
Common shares issued at period
end |
|
|
15,440,334 |
|
|
|
15,563,873 |
|
|
|
15,820,303 |
|
|
|
15,793,095 |
|
|
|
15,792,695 |
|
RSU shares vested |
|
|
— |
|
|
|
— |
|
|
|
108 |
|
|
|
— |
|
|
|
— |
|
Common shares outstanding at period end |
|
|
15,440,334 |
|
|
|
15,563,873 |
|
|
|
15,820,411 |
|
|
|
15,793,095 |
|
|
|
15,792,695 |
|
Diluted common shares outstanding
at period end |
|
|
15,647,456 |
|
|
|
15,758,747 |
|
|
|
16,036,700 |
|
|
|
16,085,729 |
|
|
|
16,118,067 |
|
Book value per common share |
|
$ |
30.25 |
|
|
$ |
29.45 |
|
|
$ |
28.66 |
|
|
$ |
28.87 |
|
|
$ |
28.07 |
|
Tangible book value per common share |
|
$ |
19.99 |
|
|
$ |
19.23 |
|
|
$ |
18.55 |
|
|
$ |
19.08 |
|
|
$ |
18.22 |
|
Tangible book value per diluted common share |
|
$ |
19.73 |
|
|
$ |
18.99 |
|
|
$ |
18.30 |
|
|
$ |
18.73 |
|
|
$ |
17.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
4,074,663 |
|
|
$ |
4,180,074 |
|
|
$ |
4,065,354 |
|
|
$ |
4,061,716 |
|
|
$ |
3,931,036 |
|
Less: goodwill |
|
|
136,432 |
|
|
|
136,432 |
|
|
|
136,432 |
|
|
|
131,712 |
|
|
|
131,723 |
|
Less: core deposit intangibles,
net |
|
|
20,727 |
|
|
|
21,512 |
|
|
|
22,296 |
|
|
|
21,725 |
|
|
|
22,466 |
|
Less: mortgage servicing asset,
net |
|
|
7 |
|
|
|
8 |
|
|
|
10 |
|
|
|
11 |
|
|
|
13 |
|
Less: naming rights, net |
|
|
1,184 |
|
|
|
1,195 |
|
|
|
1,206 |
|
|
|
1,217 |
|
|
|
1,228 |
|
Tangible assets |
|
$ |
3,916,313 |
|
|
$ |
4,020,927 |
|
|
$ |
3,905,410 |
|
|
$ |
3,907,051 |
|
|
$ |
3,775,606 |
|
Total stockholders' equity to total assets |
|
|
11.46 |
% |
|
|
10.97 |
% |
|
|
11.15 |
% |
|
|
11.23 |
% |
|
|
11.28 |
% |
Tangible common equity to tangible assets |
|
|
7.88 |
% |
|
|
7.44 |
% |
|
|
7.52 |
% |
|
|
7.71 |
% |
|
|
7.62 |
% |
Total average stockholders'
equity |
|
$ |
463,252 |
|
|
$ |
457,103 |
|
|
$ |
459,713 |
|
|
$ |
449,450 |
|
|
$ |
439,771 |
|
Less: average intangible
assets |
|
|
158,760 |
|
|
|
159,562 |
|
|
|
157,315 |
|
|
|
154,944 |
|
|
|
150,256 |
|
Average tangible common equity |
|
$ |
304,492 |
|
|
$ |
297,541 |
|
|
$ |
302,398 |
|
|
$ |
294,506 |
|
|
$ |
289,515 |
|
Net income (loss) allocable to
common stockholders |
|
$ |
10,406 |
|
|
$ |
9,232 |
|
|
$ |
(4,073 |
) |
|
$ |
9,925 |
|
|
$ |
10,322 |
|
Amortization of intangible
assets |
|
|
797 |
|
|
|
797 |
|
|
|
791 |
|
|
|
752 |
|
|
|
707 |
|
Less: tax effect of intangible
assets amortization |
|
|
167 |
|
|
|
167 |
|
|
|
166 |
|
|
|
158 |
|
|
|
148 |
|
Adjusted net income (loss) allocable to common
stockholders |
|
$ |
11,036 |
|
|
$ |
9,862 |
|
|
$ |
(3,448 |
) |
|
$ |
10,519 |
|
|
$ |
10,881 |
|
Return on total average stockholders' equity (ROAE)
annualized |
|
|
8.91 |
% |
|
|
8.10 |
% |
|
|
(3.59 |
)% |
|
|
8.76 |
% |
|
|
9.31 |
% |
Return on average tangible common equity (ROATCE)
annualized |
|
|
14.38 |
% |
|
|
13.29 |
% |
|
|
(4.62 |
)% |
|
|
14.17 |
% |
|
|
14.91 |
% |
Non-interest expense |
|
$ |
24,223 |
|
|
$ |
25,023 |
|
|
$ |
25,543 |
|
|
$ |
25,138 |
|
|
$ |
23,647 |
|
Less: merger expenses |
|
|
— |
|
|
|
276 |
|
|
|
639 |
|
|
|
938 |
|
|
|
757 |
|
Non-interest expense, excluding
merger expenses |
|
$ |
24,223 |
|
|
$ |
24,747 |
|
|
$ |
24,904 |
|
|
$ |
24,200 |
|
|
$ |
22,890 |
|
Net interest income |
|
$ |
31,526 |
|
|
$ |
31,288 |
|
|
$ |
30,639 |
|
|
$ |
33,336 |
|
|
$ |
32,755 |
|
Non-interest income |
|
|
6,572 |
|
|
|
6,451 |
|
|
|
5,324 |
|
|
|
5,449 |
|
|
|
5,433 |
|
Less: net gains (losses) from
securities transactions |
|
|
4 |
|
|
|
7 |
|
|
|
6 |
|
|
|
5 |
|
|
|
(4 |
) |
Non-interest income, excluding
gains (losses) from securities transactions |
|
$ |
6,568 |
|
|
$ |
6,444 |
|
|
$ |
5,318 |
|
|
$ |
5,444 |
|
|
$ |
5,437 |
|
Net interest income plus non-interest income, excluding net
gains (losses) from securities transactions |
|
$ |
38,094 |
|
|
$ |
37,732 |
|
|
$ |
35,957 |
|
|
$ |
38,780 |
|
|
$ |
38,192 |
|
Non-interest expense to net interest income plus
non-interest income |
|
|
63.58 |
% |
|
|
66.31 |
% |
|
|
71.03 |
% |
|
|
64.81 |
% |
|
|
61.92 |
% |
Efficiency ratio |
|
|
63.59 |
% |
|
|
65.59 |
% |
|
|
69.26 |
% |
|
|
62.40 |
% |
|
|
59.93 |
% |
Equity Bancshares (NASDAQ:EQBK)
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From Mar 2024 to Apr 2024
Equity Bancshares (NASDAQ:EQBK)
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From Apr 2023 to Apr 2024