Equity Bancshares, Inc. Results Include Strong Organic Growth While Expanding Kansas Franchise

·27 min read

Company’s third quarter includes loan growth, exclusive of PPP, accompanying successful integration of largest merger in Company’s history and announcement of the Company’s first common stock dividend

WICHITA, Kan., Oct. 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 $11.8 million and $0.80 earnings per diluted share for the quarter ended September 30, 2021. Equity’s results occurred as the Company completed its acquisition of American State Bancshares, Inc. on October 1, 2021.

“As the founder of Equity Bank, our results this quarter are particularly satisfying, as we celebrate continued loan growth, excellent earnings and our first cash stock dividend while simultaneously closing the largest acquisition in our history. I am grateful to our loyal employees and stockholders as we continue to grow and improve Equity Bank,” said Brad S. Elliott, Chairman and CEO of Equity.

“I’m pleased with the growth of the Equity Bank brand and the hard work and collaboration of our team members throughout our regions, including our bank employees, lenders, and operations professionals who placed the customer first and executed with open doors, expertise, and availability,” said Mr. Elliott. “We’ve successfully integrated American State Bank & Trust Company into our platform while continuing to provide momentum, support and expertise to our customers throughout our franchise.”

Equity customers successfully had $175.7 million of Paycheck Protection Program (“PPP”) loans forgiven during the quarter, resulting in the recognition of fee income totaling $7.7 million in the three-month period ended September 30, 2021. At September 30, 2021, the total unrecognized fee income associated with PPP loans was $3.0 million.

“Our entrepreneurial culture drives the efficiency of our merger process, assists in building a solid community banking network that is responsive to a diverse customer base and excels at adding core deposits and new households in a changing environment. Our mission as a community bank is to continue to prioritize local customers, local service, and bankers willing to go above and beyond. As we continue to grow, expand and deliver, our focus will drive value for our shareholders,” said Mr. Elliott.

Notable Items:

  • Diluted earnings per share of $0.80, adjusted to reflect core operating results, was $0.96 per diluted share. The adjustments to earnings were comprised of the exclusion of merger expenses of $4.0 million, non-accrual interest income of $1.4 million, bank-owned life insurance death benefit of $486 thousand and additional reserving for repurchase obligations associated with the Company’s Federal Deposit Insurance Corporation (“FDIC”) assisted transaction of $771 thousand.

  • Linked quarter service fee revenue, including deposit services, mortgage banking, trust and wealth and insurance services increased to $6.7 million from $6.4 million, or 3.7%.

  • The Company authorized a second stock repurchase program in the third quarter of 2020 totaling 800,000 shares. During the quarter ended September 30, 2021, the Company repurchased 57,239 shares at a weighted average cost of $30.64 per share, totaling $1.8 million. At the end of the quarter, capacity of 123,448 shares remained under the current repurchase program. The Board authorized the repurchase of up to an additional 1,000,000 shares of Equity’s outstanding common stock, beginning October 29, 2021, and concluding October 28, 2022, subject to non-objection by the Company’s primary regulators.

  • The Company announced and paid its first common stock dividend of $0.08 per share to shareholders of record as of September 30, 2021.

Equity’s Balance Sheet Highlights:

  • During the quarter total loans decreased from $2.82 billion to $2.69 billion, including a reduction in PPP assets of $175.7 million. Excluding the impact of PPP, organic growth linked quarter was $41.8 million, or 7.1% annualized.

  • Total deposits of $3.66 billion at September 30, 2021, as compared to $3.69 billion at June 30, 2021. Checking, savings and money market accounts were $3.08 billion at September 30, 2021, relative to $3.03 billion at June 30, 2021. As compared to December 31, 2020, the Bank has increased non-interest-bearing deposits by $192.8 million, or 24.4%.

  • As excess liquidity continues to impact the operating environment at quarter end, securities and interest-earning cash and cash equivalents comprise 31.4% of average earnings assets, up from 28.0% at the end of the linked quarter and 25.0% at the end of the comparable quarter in the previous year.

Financial Results for the Quarter Ended September 30, 2021

Net income allocable to common stockholders was $11.8 million, or $0.80 per diluted share, for the three months ended September 30, 2021, as compared to $15.2 million, or $1.03 per diluted share, for the three months ended June 30, 2021, a decrease of $3.4 million. This third quarter decrease was attributable to an increase in non-interest expense of $4.9 million, an increase in provision for credit losses of $2.7 million and a decrease of $1.3 million in non-interest income, partially offset by an increase in net interest income $4.3 million and a decrease in provision for income taxes of $1.1 million.

Net Interest Income

Net interest income was $39.0 million for the three months ended September 30, 2021, as compared to $34.6 million for the three months ended June 30, 2021, an increase of $4.3 million, or 12.6%. The increase in net interest income was primarily driven by an increase in loan fees, due to the forgiveness of PPP assets, of $2.0 million for the quarter ended September 30, 2021, compared to the quarter ended June 30, 2021. The yield on interest-earning assets increased 32-basis points to 4.20% during the quarter ended September 30, 2021, as compared to 3.88% for the quarter ended June 30, 2021. The cost of interest-bearing deposits declined by 3-basis points to 0.28% for the three months ended September 30, 2021, from 0.31% in the previous quarter.

Provision for Credit Losses

During the three months ended September 30, 2021, there was a provision of $1.1 million in the allowance for credit losses recognized through the provision for credit losses as compared to a net release of $1.7 million of provision for credit losses for the three months ended June 30, 2021. The comparative increase was primarily driven by an increase in reserves on specifically assessed assets which was partially offset by improving trends in the Company’s loss experience and moderating economic impacts. For the three months ended September 30, 2021, we had net charge-offs of $129 thousand as compared to $567 thousand for the three months ended June 30, 2021.

Non-Interest Income

Total non-interest income was $7.8 million for the three months ended September 30, 2021, as compared to $9.1 million for the three months ended June 30, 2021, or a decline of 14.0% quarter over quarter. Other non-interest income was $546 thousand, a decrease of $1.5 million, or 73.6%, from the quarter ended June 30, 2021. The decrease in other non-interest income was primarily due to the accounting for potential repurchase obligations associated with assets previously purchased through a FDIC assisted transaction. In the second quarter, the Company trued up the guarantee on a number of assets resulting in income recognition of $917 thousand. In the third quarter, two unrelated assets were identified to have experienced deterioration requiring the recognition of a reserve, resulting in $771 thousand in expense. The net change in these inputs account for the change in the line item.

During the quarter, service fee revenue, including deposit services, mortgage banking, trust and wealth management, credit cards and insurance increased to $6.7 million from $6.4 million during the second quarter. The growth was driven by increasing transaction activity and insurance commissions and fees.

Non-Interest Expense

Total non-interest expense for the quarter ended September 30, 2021, was $30.7 million as compared to $25.8 million for the quarter ended June 30, 2021. The $4.9 million change is primarily attributed to increases of $3.6 million in merger expenses, $819 thousand in salaries and employee benefits, driven by a comparative reduction in the deferral of cost associated with loan originations, and $372 thousand loss on debt extinguishment, related to the repayment of fixed-rate term advances with Federal Home Loan Bank that were acquired through a prior merger.

Asset Quality

As of September 30, 2021, Equity’s allowance for credit losses to total loans was 2.0%, as compared to 1.8% at June 30, 2021. Nonperforming assets were $74.3 million as of September 30, 2021, or 1.7% of total assets, compared to $66.7 million at June 30, 2021, or 1.6% of total assets. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $112.4 million, or 24.3% of regulatory capital, up from $103.5 million, or 23.2% of regulatory capital as of June 30, 2021.

During the quarter non-performing assets increased by $7.5 million due to the transition of one significant relationship to non-accrual. The Company provided $1.1 million to the allowance for credit losses, comprised of an increase in specific reserves, primarily driven by the migration of this asset to non-accrual, partially offset by improving historical loss performance and the continued moderation of economic conditions following the height of the pandemic.

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 16.6% and the total leverage ratio was 9.0% at September 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 14.5%, a ratio of total capital to risk-weighted assets of 15.8% and a total leverage ratio of 10.1% at September 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 third quarter results on Wednesday, October 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 Wednesday, October 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. 7698604.

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 27, 2021, accessible at (855) 859-2056 with conference ID no. 7698604 at investor.equitybank.com.

About Equity Bancshares, Inc.

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

Special Note Concerning Forward-Looking Statements

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

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 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.
(913) 583-8004
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
September 30,

Nine months ended
September 30,

2021

2020

2021

2020

Interest and dividend income

Loans, including fees

$

37,581

$

32,278

$

102,392

$

99,281

Securities, taxable

3,920

3,476

11,242

12,113

Securities, nontaxable

655

923

2,096

2,769

Federal funds sold and other

290

405

846

1,409

Total interest and dividend income

42,446

37,082

116,576

115,572

Interest expense

Deposits

1,881

3,064

6,316

13,827

Federal funds purchased and retail repurchase agreements

24

25

72

80

Federal Home Loan Bank advances

10

471

155

2,198

Federal Reserve Bank discount window

6

Bank stock loan

415

Subordinated debt

1,556

1,415

4,669

1,953

Total interest expense

3,471

4,975

11,212

18,479

Net interest income

38,975

32,107

105,364

97,093

Provision (reversal) for credit losses

1,058

815

(6,355

)

23,255

Net interest income after provision (reversal) for credit losses

37,917

31,292

111,719

73,838

Non-interest income

Service charges and fees

2,360

1,706

6,125

5,097

Debit card income

2,574

2,491

7,603

6,735

Mortgage banking

801

877

2,584

2,298

Increase in value of bank-owned life insurance

1,169

489

2,446

1,452

Net gain on acquisition

585

Net gains (losses) from securities transactions

381

398

12

Other

546

922

3,902

1,929

Total non-interest income

7,831

6,485

23,643

17,523

Non-interest expense

Salaries and employee benefits

13,588

13,877

39,079

40,076

Net occupancy and equipment

2,475

2,224

7,170

6,578

Data processing

3,257

2,817

9,394

8,243

Professional fees

1,076

877

3,148

3,187

Advertising and business development

760

598

2,241

1,697

Telecommunications

439

486

1,531

1,363

FDIC insurance

465

360

1,305

1,291

Courier and postage

344

366

1,040

1,103

Free nationwide ATM cost

519

439

1,504

1,186

Amortization of core deposit intangibles

1,030

1,030

3,094

2,806

Loan expense

207

107

626

628

Other real estate owned

(342

)

133

(805

)

710

Loss on debt extinguishment

372

372

Merger expenses

4,015

4,627

Goodwill impairment

104,831

104,831

Other

2,484

2,690

7,050

6,831

Total non-interest expense

30,689

130,835

81,376

180,530

Income (loss) before income tax

15,059

(93,058

)

53,986

(89,169

)

Provision for income taxes

3,286

(2,653

)

11,972

(1,711

)

Net income (loss) and net income (loss) allocable to common stockholders

$

11,773

$

(90,405

)

$

42,014

$

(87,458

)

Basic earnings (loss) per share

$

0.82

$

(6.01

)

$

2.92

$

(5.75

)

Diluted earnings (loss) per share

$

0.80

$

(6.01

)

$

2.86

$

(5.75

)

Weighted average common shares

14,384,302

15,040,407

14,397,146

15,211,901

Weighted average diluted common shares

14,669,312

15,040,407

14,688,092

15,211,901



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

As of and for the three months ended

September 30,
2021

June 30,
2021

March 31,
2021

December 31,
2020

September 30,
2020

Interest and dividend income

Loans, including fees

$

37,581

$

33,810

$

31,001

$

35,383

$

32,278

Securities, taxable

3,920

3,523

3,799

3,408

3,476

Securities, nontaxable

655

717

724

913

923

Federal funds sold and other

290

268

288

285

405

Total interest and dividend income

42,446

38,318

35,812

39,989

37,082

Interest expense

Deposits

1,881

2,025

2,410

2,755

3,064

Federal funds purchased and retail repurchase agreements

24

26

22

25

25

Federal Home Loan Bank advances

10

80

65

94

471

Subordinated debt

1,556

1,557

1,556

1,556

1,415

Total interest expense

3,471

3,688

4,053

4,430

4,975

Net interest income

38,975

34,630

31,759

35,559

32,107

Provision (reversal) for credit losses

1,058

(1,657

)

(5,756

)

1,000

815

Net interest income after provision (reversal) for credit losses

37,917

36,287

37,515

34,559

31,292

Non-interest income

Service charges and fees

2,360

2,169

1,596

1,759

1,706

Debit card income

2,574

2,679

2,350

2,401

2,491

Mortgage banking

801

848

935

855

877

Increase in value of bank-owned life insurance

1,169

676

601

489

489

Net gain on acquisition

663

(78

)

2,145

Net gains (losses) from securities transactions

381

17

(1

)

Other

546

2,065

1,291

852

922

Total non-interest income

7,831

9,100

6,712

8,500

6,485

Non-interest expense

Salaries and employee benefits

13,588

12,769

12,722

14,053

13,877

Net occupancy and equipment

2,475

2,327

2,368

2,206

2,224

Data processing

3,257

3,474

2,663

2,748

2,817

Professional fees

1,076

999

1,073

1,095

877

Advertising and business development

760

799

682

801

598

Telecommunications

439

512

580

510

486

FDIC insurance

465

425

415

797

360

Courier and postage

344

327

369

338

366

Free nationwide ATM cost

519

513

472

423

439

Amortization of core deposit intangibles

1,030

1,030

1,034

1,044

1,030

Loan expense

207

181

238

161

107

Other real estate owned

(342

)

(468

)

5

1,600

133

Loss on debt extinguishment

372

Merger expenses

4,015

460

152

299

Goodwill impairment

104,831

Other

2,484

2,458

2,108

2,385

2,690

Total non-interest expense

30,689

25,806

24,881

28,460

130,835

Income (loss) before income tax

15,059

19,581

19,346

14,599

(93,058

)

Provision for income taxes (benefit)

3,286

4,415

4,271

2,111

(2,653

)

Net income (loss) and net income (loss) allocable to common stockholders

$

11,773

$

15,166

$

15,075

$

12,488

$

(90,405

)

Basic earnings (loss) per share

$

0.82

$

1.06

$

1.04

$

0.85

$

(6.01

)

Diluted earnings (loss) per share

$

0.80

$

1.03

$

1.02

$

0.84

$

(6.01

)

Weighted average common shares

14,384,302

14,356,958

14,464,291

14,760,810

15,040,407

Weighted average diluted common shares

14,669,312

14,674,838

14,734,083

14,934,058

15,040,407



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

September 30,
2021

June 30,
2021

March 31,
2021

December 31,
2020

September 30,
2020

ASSETS

Cash and due from banks

$

141,645

$

138,869

$

136,190

$

280,150

$

65,534

Federal funds sold

673

452

498

548

305

Cash and cash equivalents

142,318

139,321

136,688

280,698

65,839

Interest-bearing time deposits in other banks

249

249

499

Available-for-sale securities

1,157,423

1,041,613

998,100

871,827

798,576

Loans held for sale

4,108

6,183

8,609

12,394

9,053

Loans, net of allowance for credit losses(1)

2,633,148

2,763,227

2,740,215

2,557,987

2,691,626

Other real estate owned, net

10,267

10,861

10,559

11,733

8,727

Premises and equipment, net

90,727

90,876

90,322

89,412

86,087

Bank-owned life insurance

103,431

103,321

102,645

77,044

76,555

Federal Reserve Bank and Federal Home Loan Bank stock

14,540

18,454

15,174

16,415

32,545

Interest receivable

15,519

15,064

16,655

15,831

18,110

Goodwill

31,601

31,601

31,601

31,601

31,601

Core deposit intangibles, net

12,963

13,993

15,023

16,057

17,101

Other

47,223

33,702

30,344

32,108

29,252

Total assets

$

4,263,268

$

4,268,216

$

4,196,184

$

4,013,356

$

3,865,571

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits

Demand

$

984,436

$

992,565

$

972,364

$

791,639

$

693,967

Total non-interest-bearing deposits

984,436

992,565

972,364

791,639

693,967

Savings, NOW and money market

2,092,849

2,035,496

2,074,261

2,029,097

1,816,307

Time

585,492

659,494

587,905

626,854

623,344

Total interest-bearing deposits

2,678,341

2,694,990

2,662,166

2,655,951

2,439,651

Total deposits

3,662,777

3,687,555

3,634,530

3,447,590

3,133,618

Federal funds purchased and retail repurchase agreements

39,137

47,184

40,339

36,029

46,295

Federal Home Loan Bank advances

9,208

9,926

10,144

167,862

Subordinated debt

88,030

87,908

87,788

87,684

87,537

Contractual obligations

18,771

4,469

4,856

5,189

5,478

Interest payable and other liabilities

36,804

18,897

20,930

19,071

22,609

Total liabilities

3,845,519

3,855,221

3,798,369

3,605,707

3,463,399

Commitments and contingent liabilities

Stockholders’ equity

Common stock

178

176

175

174

174

Additional paid-in capital

392,321

389,394

387,939

386,820

386,017

Retained earnings

79,226

68,625

53,459

50,787

38,299

Accumulated other comprehensive income, net of tax

9,475

13,450

12,019

19,781

21,074

Employee stock loans

(43

)

(43

)

Treasury stock

(63,451

)

(58,650

)

(55,777

)

(49,870

)

(43,349

)

Total stockholders’ equity

417,749

412,995

397,815

407,649

402,172

Total liabilities and stockholders’ equity

$

4,263,268

$

4,268,216

$

4,196,184

$

4,013,356

$

3,865,571

(1) Allowance for credit losses

$

52,763

$

51,834

$

55,525

$

33,709

$

34,087


TABLE 4. 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,

2021

2021

2021

2020

2020

Loans Held For Investment by Type

Commercial real estate

$

1,308,707

$

1,261,214

$

1,218,537

$

1,188,696

$

1,188,329

Commercial and industrial

569,513

732,126

820,736

734,495

857,244

Residential real estate

490,633

503,110

438,503

381,958

402,242

Agricultural real estate

138,793

129,020

134,944

133,693

127,349

Agricultural

93,767

97,912

93,764

94,322

83,084

Consumer

84,498

91,679

89,256

58,532

67,465

Total loans held-for-investment

2,685,911

2,815,061

2,795,740

2,591,696

2,725,713

Allowance for credit losses

(52,763

)

(51,834

)

(55,525

)

(33,709

)

(34,087

)

Net loans held for investment

$

2,633,148

$

2,763,227

$

2,740,215

$

2,557,987

$

2,691,626

Asset Quality Ratios

Allowance for credit losses on loans to total loans

1.96

%

1.84

%

1.99

%

1.30

%

1.25

%

Past due or nonaccrual loans to total loans

2.78

%

2.09

%

2.30

%

1.99

%

2.12

%

Nonperforming assets to total assets

1.74

%

1.56

%

1.67

%

1.36

%

1.55

%

Nonperforming assets to total loans plus other real estate owned

2.76

%

2.36

%

2.50

%

2.10

%

2.19

%

Classified assets to bank total regulatory capital

24.25

%

23.20

%

26.45

%

25.50

%

18.35

%

Selected Average Balance Sheet Data (QTD Average)

Investment securities

$

1,061,178

$

986,986

$

947,453

$

814,114

$

802,525

Total gross loans receivable

2,748,202

2,853,145

2,736,918

2,692,223

2,758,680

Interest-earning assets

4,005,509

3,964,633

3,891,140

3,647,730

3,679,168

Total assets

4,275,298

4,231,439

4,143,752

3,910,628

4,041,187

Interest-bearing deposits

2,702,040

2,656,052

2,690,159

2,551,219

2,430,407

Borrowings

132,581

171,658

139,360

172,730

377,158

Total interest-bearing liabilities

2,834,621

2,827,710

2,829,519

2,723,949

2,807,565

Total deposits

3,686,169

3,624,950

3,577,625

2,960,791

3,145,810

Total liabilities

3,852,419

3,827,400

3,748,114

3,501,056

3,558,099

Total stockholders' equity

422,879

404,039

395,638

409,572

483,088

Tangible common equity*

376,544

356,705

347,262

355,025

329,039

Performance ratios

Return on average assets (ROAA) annualized

1.09

%

1.44

%

1.48

%

1.27

%

(8.90

)%

Return on average assets before income tax, provision for loan losses and goodwill impairment*

1.50

%

1.70

%

1.33

%

1.59

%

1.24

%

Return on average equity (ROAE) annualized

11.05

%

15.06

%

15.45

%

12.13

%

(74.45

)%

Return on average equity before income tax, provision for loan losses and goodwill impairment*

15.12

%

17.79

%

13.93

%

15.15

%

10.37

%

Return on average tangible common equity
(ROATCE) annualized*

13.27

%

17.98

%

18.57

%

14.93

%

(108.31

)%

Return on average tangible common equity adjusted for goodwill impairment*

13.27

%

17.98

%

18.57

%

14.93

%

12.01

%

Yield on loans annualized

5.43

%

4.75

%

4.59

%

5.23

%

4.65

%

Cost of interest-bearing deposits annualized

0.28

%

0.31

%

0.36

%

0.43

%

0.50

%

Cost of total deposits annualized

0.20

%

0.22

%

0.27

%

0.37

%

0.39

%

Net interest margin annualized

3.86

%

3.50

%

3.31

%

3.88

%

3.47

%

Efficiency ratio*

56.65

%

58.85

%

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