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

·26 min read

Company’s fourth quarter includes full quarter results from American State Bank & Trust merger, successful assumption of three branches in the St. Joseph, Missouri market

WICHITA, Kan., Jan. 26, 2022 (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 $10.5 million and $0.61 earnings per diluted share for the quarter ended December 31, 2021. Equity’s results include a full quarter contribution from American State Bancshares, Inc. as a result of the completion of its acquisition on October 1, 2021, by Equity and an increased average outstanding share count.

“As we review 2021, we reached milestones for Equity Bank for our customers, teams, and shareholders,” said Brad Elliott, Chairman and CEO. “We issued the first common stock dividend in our company’s history and we completed and successfully integrated the largest merger in our bank’s history, welcoming American State Bank & Trust teammates into the Equity Bank family. Our teams followed that up with the addition of three branch locations in St. Joseph, Missouri, adding a new market to our Missouri footprint.”

Equity customers successfully had $51.3 million of Paycheck Protection Program (“PPP”) loans forgiven during the quarter, resulting in the recognition of fee income totaling $1.7 million in the three-month period ended December 31, 2021. At December 31, 2021, the total unrecognized fee income associated with PPP loans was $1.3 million.

“Equity was founded on entrepreneurial spirit, and that teamwork and collaboration exists in every new initiative we take on as a company, and I’m thankful to our customer service and operational teams for their hard work assisting a diverse range of customers,” said Mr. Elliott. “In 2022, we expect to continue to strengthen our customer delivery options including online and mobile banking, while continuing to offer the personal approach our customers expect from their community bank.”

Notable Items:

  • Diluted earnings per share of $0.61, adjusted to reflect core operating results, was $0.82 per diluted share. The adjustment to earnings was comprised of the exclusion of merger expenses of $4.6 million.

  • The Company authorized a third stock repurchase program in the third quarter of 2021 totaling 1,000,000 shares. During the quarter ended December 31, 2021, the Company repurchased 132,873 shares at a weighted average cost of $32.99 per share, totaling $4.4 million from this plan as well as 719 shares from the previous authorization that expired on October 29, 2021. At the end of the quarter, capacity of 867,127 shares remained under the current repurchase program.

  • Non-accrual loans declined $35.6 million to $29.4 million for the quarter ended December 31, 2021, as compared to the quarter ended September 30, 2021, representing 0.93% non-accrual loans to total loans at December 31, 2021, the lowest level reported since 2016.

Equity’s Balance Sheet Highlights:

  • During the quarter, total loans increased from $2.69 billion to $3.16 billion, of which $400 million is attributed to American State Bank & Trust (“ASBT”) loans and includes a reduction in PPP assets of $51.0 million. Excluding the impact of ASBT loans and PPP, loan growth linked quarter was $120.7 million or 18.6% annualized.

  • During the quarter total deposits increased to $4.42 billion at December 31, 2021 from $3.66 billion at September 30, 2021. Of the $757.2 million increase in the quarter, $646.5 million is attributed to ASBT deposits.

  • As excess liquidity continues to impact the operating environment at quarter end, securities and interest-earning cash and cash equivalents comprise 32.5% of average earnings assets, up from 31.4% at the end of the linked quarter and 26.2% at the end of the comparable quarter in the previous year.

Financial Results for the Quarter Ended December 31, 2021

Net income allocable to common stockholders was $10.5 million, or $0.61 per diluted share, for the three months ended December 31, 2021, as compared to $11.8 million, or $0.80 per diluted share, for the three months ended September 30, 2021, a decrease of $1.3 million. This fourth quarter decrease was attributable to an increase in non-interest expense of $7.4 million and a decrease in net interest income of $1.8 million, partially offset by a decrease in provision for credit losses of $3.2 million, an increase of $1.4 million in non-interest income and a decrease in provision for income taxes of $3.2 million.

Net Interest Income

Net interest income was $37.2 million for the three months ended December 31, 2021, as compared to $39.0 million for the three months ended September 30, 2021, a decrease of $1.8 million, or 4.6%. The decrease in net interest income was primarily driven by a decrease in loan fees, due to the forgiveness of PPP assets, of $6.3 million for the quarter ended December 31, 2021, compared to the quarter ended September 30, 2021. The yield on interest-earning assets decreased 77-basis points to 3.43% during the quarter ended December 31, 2021, as compared to 4.20% for the quarter ended September 30, 2021. The cost of interest-bearing deposits declined by 3 basis points to 0.25% for the three months ended December 31, 2021, from 0.28% in the previous quarter.

Provision for Credit Losses

During the three months ended December 31, 2021, there was a net release of $2.1 million in the allowance for credit losses recognized through the provision for credit losses as compared to a provision of $1.1 million in the allowance for credit losses for the three months ended September 30, 2021. The comparative decrease was primarily driven by a decrease 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 December 31, 2021, we had net charge-offs of $7.9 million as compared to $129 thousand for the three months ended September 30, 2021.

Non-Interest Income

Total non-interest income was $9.2 million for the three months ended December 31, 2021, as compared to $7.8 million for the three months ended September 30, 2021, or an increase of 17.5% quarter over quarter. Other non-interest income was $2.3 million, an increase of $1.8 million from the quarter ended September 30, 2021. The increase 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 third quarter, the Company had identified deterioration of two assets, requiring a reserve and resulting in reduction of income recognition of $771 thousand. Further, the company had an increase of $511 thousand of income related to derivative transactions in quarter ending December 31, 2021.

Non-Interest Expense

Total non-interest expense for the quarter ended December 31, 2021, was $38.1 million as compared to $30.7 million for the quarter ended September 30, 2021. The $7.4 million change is primarily attributed to increases of $2.7 million in other expenses, $1.5 million in salaries and employee benefits driven by the increased headcount related to the American State Bank & Trust merger, and $959 thousand in other real estate owned expense. Included in other expenses is the recognition of $1.4 million of partnership expense related to tax credit activity the Company engaged in with assets being placed into service in the quarter ending December 31, 2021, and also resulted in credits recognized in reduced tax expense.

Asset Quality

As of December 31, 2021, Equity’s allowance for credit losses to total loans was 1.5%, as compared to 2.0% at September 30, 2021. Nonperforming assets were $66.0 million as of December 31, 2021, or 1.3% of total assets, compared to $74.3 million at September 30, 2021, or 1.7% of total assets. Non-accrual loans were $29.4 million at December 31, 2021, as compared to $65.0 million at September 30, 2021. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $138.5 million, or 25.4% of regulatory capital, up from $112.4 million, or 24.3% of regulatory capital as of September 30, 2021. This increase is from classified loans acquired in the ASBT merger, most of which are performing.

During the quarter, non-performing assets decreased by $8.2 million due to the payoff of a relationship that was previously disclosed in 2019 and contributed to a reversal of allowance for credit losses of $2.7 million. A separate large credit previously discussed in prior quarters was moved to other repossessed assets and subsequently sold in mid-January. This relationship totaled $18.7 million and led to a reduction of $1.3 million in previously recorded specific reserves. The Company had a net release of $2.1 million to the allowance for credit losses, comprised of a decrease in specific reserves, primarily driven by resolution of previously identified non-performing assets and continued improved historical loss performance, partially offset by the continued uncertainty of economic conditions driven by the COVID-19 pandemic.

Regulatory Capital

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.0%, the total capital to risk-weighted assets was 15.9% and the total leverage ratio was 9.0% at December 31, 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 14.1%, a ratio of total capital to risk-weighted assets of 15.3% and a total leverage ratio of 10.1% at December 31, 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 fourth quarter results on Thursday, January 27, 2022, 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 Thursday, January 27, 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. 8086496.

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 February 3, 2022, accessible at (855) 859-2056 with conference ID no. 8086496 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
December 31,

Year ended
December 31,

2021

2020

2021

2020

Interest and dividend income

Loans, including fees

$

34,942

$

35,383

$

137,334

$

134,664

Securities, taxable

4,754

3,408

15,996

15,521

Securities, nontaxable

747

913

2,843

3,682

Federal funds sold and other

349

285

1,195

1,694

Total interest and dividend income

40,792

39,989

157,368

155,561

Interest expense

Deposits

1,939

2,755

8,255

16,582

Federal funds purchased and retail repurchase agreements

32

25

104

105

Federal Home Loan Bank advances

14

94

169

2,292

Federal Reserve Bank discount window

6

Bank stock loan

415

Subordinated debt

1,592

1,556

6,261

3,509

Total interest expense

3,577

4,430

14,789

22,909

Net interest income

37,215

35,559

142,579

132,652

Provision (reversal) for credit losses

(2,125

)

1,000

(8,480

)

24,255

Net interest income after provision (reversal) for credit losses

39,340

34,559

151,059

108,397

Non-interest income

Service charges and fees

2,471

1,759

8,596

6,856

Debit card income

2,633

2,401

10,236

9,136

Mortgage banking

722

855

3,306

3,153

Increase in value of bank-owned life insurance

1,060

489

3,506

1,941

Net gain on acquisition

2,145

585

2,145

Net gains (losses) from securities transactions

8

(1

)

406

11

Other

2,305

852

6,207

2,781

Total non-interest income

9,199

8,500

32,842

26,023

Non-interest expense

Salaries and employee benefits

15,119

14,053

54,198

54,129

Net occupancy and equipment

2,967

2,206

10,137

8,784

Data processing

3,867

2,748

13,261

10,991

Professional fees

1,565

1,095

4,713

4,282

Advertising and business development

1,129

801

3,370

2,498

Telecommunications

435

510

1,966

1,873

FDIC insurance

360

797

1,665

2,088

Courier and postage

389

338

1,429

1,441

Free nationwide ATM cost

515

423

2,019

1,609

Amortization of core deposit intangibles

1,080

1,044

4,174

3,850

Loan expense

308

161

934

789

Other real estate owned

617

1,600

(188

)

2,310

Loss on debt extinguishment

372

Merger expenses

4,562

299

9,189

299

Goodwill impairment

104,831

Other

5,176

2,385

12,226

9,216

Total non-interest expense

38,089

28,460

119,465

208,990

Income (loss) before income tax

10,450

14,599

64,436

(74,570

)

Provision for income taxes

(16

)

2,111

11,956

400

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

$

10,466

$

12,488

$

52,480

$

(74,970

)

Basic earnings (loss) per share

$

0.62

$

0.85

$

3.49

$

(4.97

)

Diluted earnings (loss) per share

$

0.61

$

0.84

$

3.43

$

(4.97

)

Weighted average common shares

16,865,167

14,760,810

15,019,221

15,098,512

Weighted average diluted common shares

14,669,312

14,934,058

15,306,431

15,098,512

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

As of and for the three months ended

December 31,
2021

September 30,
2021

June 30,
2021

March 31,
2021

December 31,
2020

Interest and dividend income

Loans, including fees

$

34,942

$

37,581

$

33,810

$

31,001

$

35,383

Securities, taxable

4,754

3,920

3,523

3,799

3,408

Securities, nontaxable

747

655

717

724

913

Federal funds sold and other

349

290

268

288

285

Total interest and dividend income

40,792

42,446

38,318

35,812

39,989

Interest expense

Deposits

1,939

1,881

2,025

2,410

2,755

Federal funds purchased and retail repurchase agreements

32

24

26

22

25

Federal Home Loan Bank advances

14

10

80

65

94

Subordinated debt

1,592

1,556

1,557

1,556

1,556

Total interest expense

3,577

3,471

3,688

4,053

4,430

Net interest income

37,215

38,975

34,630

31,759

35,559

Provision (reversal) for credit losses

(2,125

)

1,058

(1,657

)

(5,756

)

1,000

Net interest income after provision (reversal) for credit losses

39,340

37,917

36,287

37,515

34,559

Non-interest income

Service charges and fees

2,471

2,360

2,169

1,596

1,759

Debit card income

2,633

2,574

2,679

2,350

2,401

Mortgage banking

722

801

848

935

855

Increase in value of bank-owned life insurance

1,060

1,169

676

601

489

Net gain on acquisition

663

(78

)

2,145

Net gains (losses) from securities transactions

8

381

17

(1

)

Other

2,305

546

2,065

1,291

852

Total non-interest income

9,199

7,831

9,100

6,712

8,500

Non-interest expense

Salaries and employee benefits

15,119

13,588

12,769

12,722

14,053

Net occupancy and equipment

2,967

2,475

2,327

2,368

2,206

Data processing

3,867

3,257

3,474

2,663

2,748

Professional fees

1,565

1,076

999

1,073

1,095

Advertising and business development

1,129

760

799

682

801

Telecommunications

435

439

512

580

510

FDIC insurance

360

465

425

415

797

Courier and postage

389

344

327

369

338

Free nationwide ATM cost

515

519

513

472

423

Amortization of core deposit intangibles

1,080

1,030

1,030

1,034

1,044

Loan expense

308

207

181

238

161

Other real estate owned

617

(342

)

(468

)

5

1,600

Loss on debt extinguishment

372

Merger expenses

4,562

4,015

460

152

299

Other

5,176

2,484

2,458

2,108

2,385

Total non-interest expense

38,089

30,689

25,806

24,881

28,460

Income (loss) before income tax

10,450

15,059

19,581

19,346

14,599

Provision for income taxes (benefit)

(16

)

3,286

4,415

4,271

2,111

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

$

10,466

$

11,773

$

15,166

$

15,075

$

12,488

Basic earnings (loss) per share

$

0.62

$

0.82

$

1.06

$

1.04

$

0.85

Diluted earnings (loss) per share

$

0.61

$

0.80

$

1.03

$

1.02

$

0.84

Weighted average common shares

16,865,167

14,384,302

14,356,958

14,464,291

14,760,810

Weighted average diluted common shares

17,141,174

14,669,312

14,674,838

14,734,083

14,934,058

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

December 31,
2021

September 30,
2021

June 30,
2021

March 31,
2021

December 31,
2020

ASSETS

Cash and due from banks

$

259,131

$

141,645

$

138,869

$

136,190

$

280,150

Federal funds sold

823

673

452

498

548

Cash and cash equivalents

259,954

142,318

139,321

136,688

280,698

Interest-bearing time deposits in other banks

249

249

Available-for-sale securities

1,327,442

1,157,423

1,041,613

998,100

871,827

Loans held for sale

4,214

4,108

6,183

8,609

12,394

Loans, net of allowance for credit losses(1)

3,107,262

2,633,148

2,763,227

2,740,215

2,557,987

Other real estate owned, net

9,523

10,267

10,861

10,559

11,733

Premises and equipment, net

104,038

90,727

90,876

90,322

89,412

Bank-owned life insurance

120,787

103,431

103,321

102,645

77,044

Federal Reserve Bank and Federal Home Loan Bank stock

17,510

14,540

18,454

15,174

16,415

Interest receivable

18,048

15,519

15,064

16,655

15,831

Goodwill

56,609

31,601

31,601

31,601

31,601

Core deposit intangibles, net

14,879

12,963

13,993

15,023

16,057

Other

99,509

47,223

33,702

30,344

32,108

Total assets

$

5,139,775

$

4,263,268

$

4,268,216

$

4,196,184

$

4,013,356

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposits

Demand

$

1,244,117

$

984,436

$

992,565

$

972,364

$

791,639

Total non-interest-bearing deposits

1,244,117

984,436

992,565

972,364

791,639

Savings, NOW and money market

2,522,289

2,092,849

2,035,496

2,074,261

2,029,097

Time

653,598

585,492

659,494

587,905

626,854

Total interest-bearing deposits

3,175,887

2,678,341

2,694,990

2,662,166

2,655,951

Total deposits

4,420,004

3,662,777

3,687,555

3,634,530

3,447,590

Federal funds purchased and retail repurchase agreements

56,006

39,137

47,184

40,339

36,029

Federal Home Loan Bank advances

9,208

9,926

10,144

Subordinated debt

95,885

88,030

87,908

87,788

87,684

Contractual obligations

17,692

18,771

4,469

4,856

5,189

Interest payable and other liabilities

49,557

36,804

18,897

20,930

19,071

Total liabilities

4,639,144

3,845,519

3,855,221

3,798,369

3,605,707

Commitments and contingent liabilities

Stockholders’ equity

Common stock

203

178

176

175

174

Additional paid-in capital

478,862

392,321

389,394

387,939

386,820

Retained earnings

88,324

79,226

68,625

53,459

50,787

Accumulated other comprehensive income, net of tax

1,776

9,475

13,450

12,019

19,781

Employee stock loans

(43

)

Treasury stock

(68,534

)

(63,451

)

(58,650

)

(55,777

)

(49,870

)

Total stockholders’ equity

500,631

417,749

412,995

397,815

407,649

Total liabilities and stockholders’ equity

$

5,139,775

$

4,263,268

$

4,268,216

$

4,196,184

$

4,013,356

(1) Allowance for credit losses

$

48,365

$

52,763

$

51,834

$

55,525

$

33,709

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

As of and for the three months ended

December 31,

September 30,

June 30,

March 31,

December 31,

2021

2021

2021

2021

2020

Loans Held For Investment by Type

Commercial real estate

$

1,486,148

$

1,308,707

$

1,261,214

$

1,218,537

$

1,188,696

Commercial and industrial

567,497

569,513

732,126

820,736

734,495

Residential real estate

638,087

490,633

503,110

438,503

381,958

Agricultural real estate

198,330

138,793

129,020

134,944

133,693

Agricultural

166,976

93,767

97,912

93,764

94,322

Consumer

98,590

84,498

91,679

89,256

58,532

Total loans held-for-investment

3,155,628

2,685,911

2,815,061

2,795,740

2,591,696

Allowance for credit losses

(48,365

)

(52,763

)

(51,834

)

(55,525

)

(33,709

)

Net loans held for investment

$

3,107,263

$

2,633,148

$

2,763,227

$

2,740,215

$

2,557,987

Asset Quality Ratios

Allowance for credit losses on loans to total loans

1.53

%

1.96

%

1.84

%

1.99

%

1.30

%

Past due or nonaccrual loans to total loans

1.18

%

2.78

%

2.09

%

2.30

%

1.99

%

Nonperforming assets to total assets

1.28

%

1.74

%

1.56

%

1.67

%

1.36

%

Nonperforming assets to total loans plus other
real estate owned

2.09

%

2.76

%

2.36

%

2.50

%

2.10

%

Classified assets to bank total regulatory capital

25.35

%

24.25

%

23.20

%

26.45

%

25.50

%

Selected Average Balance Sheet Data (QTD Average)

Investment securities

$

1,330,267

$

1,061,178

$

986,986

$

947,453

$

814,114

Total gross loans receivable

3,181,281

2,748,202

2,853,145

2,736,918

2,692,223

Interest-earning assets

4,713,819

4,005,509

3,964,633

3,891,140

3,647,730

Total assets

5,068,301

4,275,298

4,231,439

4,143,752

3,910,628

Interest-bearing deposits

3,101,657

2,702,040

2,656,052

2,690,159

2,551,219

Borrowings

165,941

132,581

171,658

139,360

172,730

Total interest-bearing liabilities

3,267,598

2,834,621

2,827,710

2,829,519

2,723,949

Total deposits

4,342,732

3,686,169

3,624,950

3,577,625

2,960,791

Total liabilities

4,507,113

3,852,419

3,827,400

3,748,114

3,501,056

Total stockholders' equity

563,023

422,879

404,039

395,638

409,572

Tangible common equity*

501,814

376,544

356,705

347,262

355,025

Performance ratios

Return on average assets (ROAA) annualized

0.82

%

1.09

%

1.44

%

1.48

%

1.27

%

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

0.65

%

1.50

%

1.70

%

1.33

%

1.59

%

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