Reports Net Interest Margin of 4.17%, Closes
the Quarter with a Tangible Common Equity Ratio of 9.95%
Equity Bancshares, Inc. (NYSE: EQBK), (“Equity”, “the Company,”
“we,” “us,” “our”), the Wichita-based holding company of Equity
Bank, reported net income of $17.0 million or $1.04 earnings per
diluted share for the quarter ended December 31, 2024.
“Our Company had an excellent year as we realized expansion of
our footprint, our balance sheet and our ownership group,” said
Brad S. Elliott, Chairman and CEO of Equity. “Our team remains
committed to generating value for our customers, our employees and
our shareholders and enters 2025 positioned to execute.”
“During the quarter, we were able to successfully bolster our
capital through a common stock raise,” Mr. Elliott continued. “The
additive equity positions our Company to be opportunistic in
delivering on our two-prong growth strategy of organic production
and strategic acquisition. We continue to be optimistic about
opportunities to deploy these in the markets in which we
operate.”
Notable Items:
- The Company realized earnings per diluted share of $1.04.
Margin for the quarter was 4.17% positively impacted by
non-recurring nonaccrual reversals and prepayment fees of
approximately $1.5 million. Excluding these non-recurring items,
margin for the quarter was 4.04% an increase of 17 basis points as
compared to the previous quarter.
- The Company realized book value per share expansion of $1.07
per share, or 3.2%. Tangible book value per share improved $1.69
per share, or 6.0%. Book value per share excluding AOCI increased
$1.61, or 4.5%. Tangible common equity to tangible assets closed
the period at 9.95%.
- The Company completed a common stock capital raise, issuing
2,067,240 shares at a price of $44.50 per share. After expense
capital impact totaled $87.0 million.
- Deposit balances, excluding brokered, increased $211.2 million
driven by seasonal inflows on municipality relationships. Full year
growth in deposits, excluding brokered, was $304.2 million, or
7.3%.
- Loan balances closed the period at $3.5 billion, reflecting
full year growth of $167.9 million, or 5.0%. The loan-to-deposit
ratio closed the period at 80.0%.
- Realized opposing asset quality trends as nonaccrual loans
declined from $31.3 million to $27.1, or 0.77% of total loans while
classified assets increased to $73.5 million or 12.10% of bank
regulatory capital. Reserves as a percentage of loans increased to
1.24%.
- The Company announced a $0.15 dividend on outstanding common
shares as of December 31, 2024. Our repurchase program remains
active, though no shares were purchased during the quarter.
The Company is also pleased to announce the return of Greg
Kossover to the executive management team. Mr. Kossover will be
returning to the team in February and will lead our Capital Markets
division while also retaining his role as a director of the Company
and Equity Bank.
“Greg’s expertise, strategic vision, and commitment to
excellence will be instrumental as we continue to drive growth and
deliver exceptional value to our shareholders,” said Rick Sems,
Equity Bank President & CEO. “We look forward to the positive
impact Greg will undoubtedly have as we move forward together.”
Financial Results for the Quarter Ended
December 31, 2024
Net income allocable to common stockholders was $17.0 million,
or $1.04 per diluted share. Excluding merger expenses and gains or
losses on security transactions, net income was $20.3 million, or
$1.31 per diluted share in the previous quarter. The drivers of the
periodic change are discussed in detail in the following
sections.
Net Interest Income
Net interest income was $49.5 million for the period, as
compared to $46.0 million for previous quarter. Adjusting the
stated number for non-recurring nonaccrual reversals and excess
prepayment fee realization of $1.5 million, net interest income was
$48.0 for the quarter. The periodic increase primarily was driven
by downward re-pricing of liabilities which outpaced the downward
re-pricing of assets in an environment that saw multiple interest
rate cuts by the FOMC. For the quarter, cost of interest bearing
liabilities were 2.80% for the quarter down 31 basis points from
3.11% while yield on interest earning assets was 6.32% up 2 basis
points from 6.30%. Excluding the previously discussed non-recurring
items, yield on interest earning assets would have been 6.20%.
Total earning assets declined slightly during the quarter as
higher loan balances were offset by declining cash and security
positions as excess cash flows were used to payoff debt and
brokered funding versus reinvestment.
Provision for Credit Losses
During the quarter, there was a provision of $98 thousand
compared to a provision of $1.2 million in the previous quarter.
The level of provision was primarily attributable to charge-offs
during the quarter offset by declining loan balances. The Company
continues to estimate the allowance for credit loss with
assumptions that anticipate slower prepayment rates and continued
market disruption caused by elevated inflation, supply chain issues
and the impact of monetary policy on consumers and businesses.
During the quarter, we realized net charge-offs of $322 thousand as
compared to $1.6 million for the previous quarter.
Non-Interest Income
Total non-interest income was $8.8 million for the quarter, as
compared to $9.3 million linked quarter. Excluding the $831
thousand gain on acquisition from linked quarter results,
non-interest income was up $330 thousand.
Non-Interest Expense
Total non-interest expense for the quarter was $37.8 million as
compared to $30.3 million for the previous quarter. Prior quarter
results included $8.5 million in benefit from a borrower’s
repurchase of our preferred equity interest offset by a $742
thousand write-down on a previous bank location and $618 thousand
in merger expense. Adjusting for these items, non-interest expense
in the prior quarter would have been $37.4 million.
Income Tax Expense
The effective tax rate for the quarter ending, December 31,
2024, was 16.7% which remains consistent with the 16.7% reported
for the prior quarter. The year-to-date effective tax rate is 20.0%
as compared to 21.2% at September 30, 2024. The decrease in the
year-to-date tax rate is associated with a decrease in the impact
of tax rate reconciling items recognized as a percent of pre-tax
book income, reductions in the effective state tax rate to align
with state tax filings, and excess tax benefits related to stock
compensation recognized in the quarter.
Loans, Total Assets and Funding
Loans held for investment were $3.5 billion at December 31,
2024, decreasing $100.1 million during the quarter. Total assets
were $5.3 billion as of the end of the period, decreasing $23.2
million during the quarter.
Total deposits were $4.4 billion at December 31, 2024,
increasing $11.9 million from the previous quarter end. Of the
total deposit balance, non-interest-bearing accounts comprise
approximately 21.8%. Total Federal Home Loan Bank borrowings were
$178.1 million as of the end of the quarter, down $117.9 million
from previous quarter end.
Asset Quality
As of December 31, 2024, Equity’s allowance for credit losses to
total loans was 1.2% up 3 basis points as compared to previous
quarter end. Nonperforming assets were $34.7 million as of December
31, 2024, or 0.7% of total assets, compared to $32.4 million at
September 30, 2024, or 0.6% of total assets. The increase was
driven by one Main Street Lending Program loan which was foreclosed
and is held in Other Real Estate Owned at its gross balance.
Reducing this to reflect only the Bank’s portion (5%) would result
in ending non-performing assets of $31.0 million. Non-accrual loans
were $27.1 million at December 31, 2024, as compared to $31.3
million at September 30, 2024. Total classified assets, including
loans rated special mention or worse, other real estate owned,
excluding previous branch locations, and other repossessed assets
were $73.5 million, or 12.1% of regulatory capital, up from $48.9
million, or 8.3% of regulatory capital as of September 30,
2024.
Capital
Quarter over quarter, book capital increased $88.9 million to
$592.9 million and tangible capital increased $90.0 million to
$523.9 million. Tangible book value per share closed the quarter at
$30.07, increasing 6.0% compared to prior quarter. The increase in
capital is primarily due to completion of a common stock capital
raise in December through which the Company issued 2,067,240 shares
at a price of $44.50. After accounting for costs to issue, the
raise added $87.0 million in common equity capital. The remaining
change to book and tangible capital during the quarter was
attributable to earnings offset by an increase in unrealized losses
reflected in AOCI.
The Company’s ratio of common equity tier 1 capital to
risk-weighted assets was 14.5%, the total capital to risk-weighted
assets was 18.1% and the total leverage ratio was 11.7% at December
31, 2024. At September 30, 2024, the Company’s common equity tier 1
capital to risk-weighted assets ratio was 11.4%, the total capital
to risk-weighted assets ratio was 14.8% and the total leverage
ratio was 9.6%.
Equity Bank's ratio of common equity tier 1 capital to
risk-weighted assets was 14.1%, total capital to risk-weighted
assets was 15.3% and the total leverage ratio was 10.9% at December
31, 2024. At September 30, 2024, Equity Bank’s ratio of common
equity tier 1 capital to risk-weighted assets was 13.0%, the ratio
of total capital to risk-weighted assets was 14.1% and the total
leverage ratio was 10.4%.
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 a common comparable metric used by banks
to understand the expense structure relative to 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 and
provision for loan losses 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 “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 6 in
the following press release tables.
Conference Call and
Webcast
Equity’s Chairman and Chief Executive Officer, Brad Elliott, and
Chief Financial Officer, Chris Navratil, will hold a conference
call and webcast to discuss fourth quarter results on Thursday,
January 23, 2025, at 10 a.m. eastern time or 9 a.m. central
time.
A live webcast of the call will be available on the Company’s
website at investor.equitybank.com. To access the call by phone,
please go to this registration link, and you will be provided with
dial in details. Investors, news media, and other participants are
encouraged to dial into the conference call ten minutes ahead of
the scheduled start time.
A replay of the call and webcast will be available following the
close of the call 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 NYSE
National, Inc. 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,”
“positioned,” “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 7, 2024, 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, except as required by law. 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.
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,
2024
2023
2024
2023
Interest and dividend income
Loans, including fees
$
63,379
$
54,932
$
245,815
$
211,213
Securities, taxable
9,229
6,417
39,091
23,873
Securities, nontaxable
387
354
1,579
1,960
Federal funds sold and other
1,984
2,591
10,358
9,666
Total interest and dividend income
74,979
64,294
296,843
246,712
Interest expense
Deposits
21,213
20,074
90,409
70,473
Federal funds purchased and retail
repurchase agreements
258
298
1,151
931
Federal Home Loan Bank advances
2,158
1,005
10,180
3,944
Federal Reserve Bank borrowings
—
1,546
1,361
4,755
Subordinated debt
1,877
1,904
7,580
7,591
Total interest expense
25,506
24,827
110,681
87,694
Net interest income
49,473
39,467
186,162
159,018
Provision (reversal) for credit losses
98
711
2,546
1,873
Net interest income after provision
(reversal) for credit losses
49,375
38,756
183,616
157,145
Non-interest income
Service charges and fees
2,296
2,299
9,830
10,187
Debit card income
2,513
2,524
10,246
10,322
Mortgage banking
141
125
861
652
Increase in value of bank-owned life
insurance
1,883
925
4,966
4,059
Net gain on acquisition and branch
sales
—
—
2,131
—
Net gains (losses) from securities
transactions
(2
)
(50,618
)
220
(51,909
)
Other
1,985
1,331
10,568
7,560
Total non-interest income
8,816
(43,414
)
38,822
(19,129
)
Non-interest expense
Salaries and employee benefits
18,368
16,598
72,786
64,384
Net occupancy and equipment
3,571
3,244
14,371
12,325
Data processing
4,988
4,471
20,004
17,433
Professional fees
1,846
1,413
6,503
5,754
Advertising and business development
1,469
1,598
5,366
5,425
Telecommunications
614
460
2,501
1,963
FDIC insurance
662
660
2,483
2,195
Courier and postage
687
577
2,599
2,046
Free nationwide ATM cost
558
508
2,127
2,073
Amortization of core deposit
intangibles
1,060
739
4,289
3,374
Loan expense
154
155
601
540
Other real estate owned and repossessed
assets, net
133
274
(7,525
)
617
Merger expenses
—
297
4,461
297
Other
3,696
4,004
13,591
17,175
Total non-interest expense
37,806
34,998
144,157
135,601
Income (loss) before income tax
20,385
(39,656
)
78,281
2,415
Provision for income taxes (benefit)
3,399
(11,357
)
15,660
(5,406
)
Net income (loss) and net income (loss)
allocable to common stockholders
$
16,986
$
(28,299
)
$
62,621
$
7,821
Basic earnings (loss) per share
$
1.06
$
(1.84
)
$
4.04
$
0.50
Diluted earnings (loss) per share
$
1.04
$
(1.84
)
$
4.00
$
0.50
Weighted average common shares
16,020,938
15,417,200
15,489,370
15,535,772
Weighted average diluted common shares
16,262,965
15,417,200
15,671,674
15,648,842
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, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
Interest and dividend income
Loans, including fees
$
63,379
$
62,089
$
61,518
$
58,829
$
54,932
Securities, taxable
9,229
9,809
10,176
9,877
6,417
Securities, nontaxable
387
400
401
391
354
Federal funds sold and other
1,984
2,667
3,037
2,670
2,591
Total interest and dividend income
74,979
74,965
75,132
71,767
64,294
Interest expense
Deposits
21,213
23,679
22,662
22,855
20,074
Federal funds purchased and retail
repurchase agreements
258
261
306
326
298
Federal Home Loan Bank advances
2,158
3,089
3,789
1,144
1,005
Federal Reserve Bank borrowings
—
—
—
1,361
1,546
Subordinated debt
1,877
1,905
1,899
1,899
1,904
Total interest expense
25,506
28,934
28,656
27,585
24,827
Net interest income
49,473
46,031
46,476
44,182
39,467
Provision (reversal) for credit losses
98
1,183
265
1,000
711
Net interest income after provision
(reversal) for credit losses
49,375
44,848
46,211
43,182
38,756
Non-interest income
Service charges and fees
2,296
2,424
2,541
2,569
2,299
Debit card income
2,513
2,665
2,621
2,447
2,524
Mortgage banking
141
287
245
188
125
Increase in value of bank-owned life
insurance
1,883
1,344
911
828
925
Net gain on acquisition and branch
sales
—
831
60
1,240
—
Net gains (losses) from securities
transactions
(2
)
206
(27
)
43
(50,618
)
Other
1,985
1,560
2,607
4,416
1,331
Total non-interest income
8,816
9,317
8,958
11,731
(43,414
)
Non-interest expense
Salaries and employee benefits
18,368
18,494
17,827
18,097
16,598
Net occupancy and equipment
3,571
3,478
3,787
3,535
3,244
Data processing
4,988
5,152
5,036
4,828
4,471
Professional fees
1,846
1,487
1,778
1,392
1,413
Advertising and business development
1,469
1,368
1,291
1,238
1,598
Telecommunications
614
660
572
655
460
FDIC insurance
662
660
590
571
660
Courier and postage
687
686
620
606
577
Free nationwide ATM cost
558
544
531
494
508
Amortization of core deposit
intangibles
1,060
1,112
1,218
899
739
Loan expense
154
143
195
109
155
Other real estate owned and repossessed
assets, net
133
(7,667
)
50
(41
)
274
Merger expenses
—
618
2,287
1,556
297
Other
3,696
3,593
3,089
3,213
4,004
Total non-interest expense
37,806
30,328
38,871
37,152
34,998
Income (loss) before income tax
20,385
23,837
16,298
17,761
(39,656
)
Provision for income taxes (benefit)
3,399
3,986
4,582
3,693
(11,357
)
Net income (loss) and net income (loss)
allocable to common stockholders
$
16,986
$
19,851
$
11,716
$
14,068
$
(28,299
)
Basic earnings (loss) per share
$
1.06
$
1.30
$
0.77
$
0.91
$
(1.84
)
Diluted earnings (loss) per share
$
1.04
$
1.28
$
0.76
$
0.90
$
(1.84
)
Weighted average common shares
16,020,938
15,258,822
15,248,703
15,425,709
15,417,200
Weighted average diluted common shares
16,262,965
15,451,545
15,377,980
15,569,225
15,417,200
TABLE 3. CONSOLIDATED BALANCE
SHEETS (Unaudited)
(Dollars in thousands)
December 31, 2024
September 30, 2024
June 30, 2024
March 31, 2024
December 31, 2023
ASSETS
Cash and due from banks
$
383,503
$
217,681
$
244,321
$
217,611
$
363,289
Federal funds sold
244
17,802
15,945
17,407
15,810
Cash and cash equivalents
383,747
235,483
260,266
235,018
379,099
Available-for-sale securities
1,004,455
1,041,000
1,042,176
1,091,717
919,648
Held-to-maturity securities
5,217
5,408
5,226
2,205
2,209
Loans held for sale
513
901
1,959
1,311
476
Loans, net of allowance for credit
losses(1)
3,457,549
3,557,435
3,410,920
3,437,714
3,289,381
Other real estate owned, net
4,773
2,786
2,989
1,465
1,833
Premises and equipment, net
117,132
117,013
114,264
116,792
112,632
Bank-owned life insurance
133,032
131,670
130,326
125,693
124,865
Federal Reserve Bank and Federal Home Loan
Bank stock
27,875
34,429
33,171
27,009
20,608
Interest receivable
28,913
28,398
27,381
27,082
25,497
Goodwill
53,101
53,101
53,101
53,101
53,101
Core deposit intangibles, net
14,969
16,029
16,636
17,854
7,222
Other
100,771
131,580
147,102
102,075
98,021
Total assets
$
5,332,047
$
5,355,233
$
5,245,517
$
5,239,036
$
5,034,592
LIABILITIES AND STOCKHOLDERS’
EQUITY
Deposits
Demand
$
954,065
$
967,858
$
984,872
$
981,623
$
898,129
Total non-interest-bearing deposits
954,065
967,858
984,872
981,623
898,129
Demand, savings and money market
2,684,197
2,468,956
2,560,091
2,574,871
2,483,807
Time
736,527
926,130
796,474
814,532
763,519
Total interest-bearing deposits
3,420,724
3,395,086
3,356,565
3,389,403
3,247,326
Total deposits
4,374,789
4,362,944
4,341,437
4,371,026
4,145,455
Federal funds purchased and retail
repurchase agreements
37,246
38,196
38,031
43,811
43,582
Federal Home Loan Bank advances and
Federal Reserve Bank borrowings
178,073
295,997
250,306
219,931
240,000
Subordinated debt
97,477
97,336
97,196
97,058
96,921
Contractual obligations
12,067
19,683
23,770
18,493
19,315
Interest payable and other liabilities
39,477
37,039
33,342
31,941
36,459
Total liabilities
4,739,129
4,851,195
4,784,082
4,782,260
4,581,732
Commitments and contingent liabilities
Stockholders’ equity
Common stock
230
209
208
208
207
Additional paid-in capital
584,424
494,763
491,709
490,533
489,187
Retained earnings
194,920
180,588
163,068
153,201
141,006
Accumulated other comprehensive income
(loss), net of tax
(55,181
)
(40,012
)
(62,005
)
(60,788
)
(57,920
)
Treasury stock
(131,475
)
(131,510
)
(131,545
)
(126,378
)
(119,620
)
Total stockholders’ equity
592,918
504,038
461,435
456,776
452,860
Total liabilities and stockholders’
equity
$
5,332,047
$
5,355,233
$
5,245,517
$
5,239,036
$
5,034,592
(1) Allowance for credit losses
$
43,267
$
43,490
$
43,487
$
44,449
$
43,520
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,
2024
2024
2024
2024
2023
Loans Held For Investment by
Type
Commercial real estate
$
1,830,514
$
1,916,863
$
1,793,544
$
1,797,192
$
1,759,855
Commercial and industrial
658,865
670,665
663,718
649,035
598,327
Residential real estate
566,766
567,063
572,523
581,988
556,328
Agricultural real estate
267,248
259,587
219,226
198,291
196,114
Agricultural
87,339
89,529
104,342
149,312
118,587
Consumer
90,084
97,218
101,054
106,345
103,690
Total loans held-for-investment
3,500,816
3,600,925
3,454,407
3,482,163
3,332,901
Allowance for credit losses
(43,267
)
(43,490
)
(43,487
)
(44,449
)
(43,520
)
Net loans held for investment
$
3,457,549
$
3,557,435
$
3,410,920
$
3,437,714
$
3,289,381
Asset Quality Ratios
Allowance for credit losses on loans to
total loans
1.24
%
1.21
%
1.26
%
1.28
%
1.31
%
Past due or nonaccrual loans to total
loans
1.14
%
1.17
%
1.15
%
1.10
%
1.10
%
Nonperforming assets to total assets
0.65
%
0.60
%
0.52
%
0.49
%
0.53
%
Nonperforming assets to total loans plus
other real estate owned
0.99
%
0.90
%
0.79
%
0.73
%
0.79
%
Classified assets to bank total regulatory
capital
12.10
%
8.32
%
8.47
%
6.85
%
7.09
%
Selected Average Balance Sheet Data
(QTD Average)
Investment securities
$
1,012,698
$
1,055,833
$
1,065,979
$
1,074,101
$
985,591
Total gross loans receivable
3,525,765
3,475,885
3,459,476
3,452,553
3,293,755
Interest-earning assets
4,716,295
4,731,927
4,745,713
4,742,200
4,480,279
Total assets
5,163,166
5,205,017
5,196,259
5,152,915
4,892,712
Interest-bearing deposits
3,280,592
3,309,202
3,275,765
3,319,907
3,092,637
Borrowings
340,042
395,190
450,178
390,166
391,691
Total interest-bearing liabilities
3,620,634
3,704,392
3,725,943
3,710,073
3,484,328
Total deposits
4,243,159
4,275,424
4,250,843
4,254,883
4,019,362
Total liabilities
4,629,939
4,719,549
4,740,937
4,692,671
4,469,505
Total stockholders' equity
533,227
485,468
455,322
460,244
423,207
Tangible common equity*
463,657
414,644
383,899
398,041
361,451
Performance ratios
Return on average assets (ROAA)
annualized
1.31
%
1.52
%
0.91
%
1.10
%
(2.29
)%
Core return on average assets*
1.37
%
1.56
%
1.25
%
1.17
%
1.01
%
Core return on average assets before
income tax and provision for loan losses*
1.66
%
1.97
%
1.55
%
1.56
%
1.03
%
Return on average equity (ROAE)
annualized
12.67
%
16.27
%
10.35
%
12.29
%
(26.53
)%
Core return on average equity*
13.29
%
16.73
%
14.25
%
13.11
%
11.21
%
Core return on average equity before
income tax and provision for loan losses*
16.01
%
20.97
%
17.57
%
17.34
%
11.40
%
Return on average tangible common equity
(ROATCE) annualized*
15.30
%
19.92
%
13.31
%
14.96
%
(30.39
)%
Core return on average tangible common
equity*
15.29
%
19.58
%
16.89
%
15.16
%
13.02
%
Yield on loans annualized
7.15
%
7.11
%
7.15
%
6.85
%
6.62
%
Cost of interest-bearing deposits
annualized
2.57
%
2.85
%
2.78
%
2.77
%
2.58
%
Cost of total deposits annualized
1.99
%
2.20
%
2.14
%
2.16
%
1.98
%
Net interest margin annualized
4.17
%
3.87
%
3.94
%
3.75
%
3.49
%
Efficiency ratio*
63.02
%
52.59
%
63.77
%
63.45
%
72.69
%
Non-interest income / average assets
0.68
%
0.71
%
0.69
%
0.92
%
(3.52
)%
Non-interest expense / average assets
2.91
%
2.32
%
3.01
%
2.90
%
2.84
%
Core non-interest expense / average
assets*
2.83
%
2.18
%
2.73
%
2.71
%
2.75
%
Capital Ratios
Tier 1 Leverage Ratio
11.67
%
9.55
%
9.14
%
9.10
%
9.46
%
Common Equity Tier 1 Capital Ratio
14.51
%
11.37
%
11.12
%
11.14
%
11.74
%
Tier 1 Risk Based Capital Ratio
15.11
%
11.94
%
11.70
%
11.73
%
12.36
%
Total Risk Based Capital Ratio
18.07
%
14.78
%
14.61
%
14.71
%
15.48
%
Total stockholders' equity to total
assets
11.12
%
9.41
%
8.80
%
8.72
%
8.99
%
Tangible common equity to tangible
assets*
9.95
%
8.21
%
7.55
%
7.45
%
7.87
%
Dividend payout ratio
15.62
%
11.74
%
15.79
%
13.31
%
(6.65
)%
Book value per common share
$
34.04
$
32.97
$
30.36
$
29.80
$
29.35
Tangible book value per common share*
$
30.07
$
28.38
$
25.70
$
25.10
$
25.37
Tangible book value per diluted common
share*
$
29.70
$
28.00
$
25.44
$
24.87
$
25.05
Core earnings per diluted share*
$
1.10
$
1.32
$
1.05
$
0.96
$
0.81
Core pre-tax pre-provision earnings per
diluted share*
$
1.33
$
1.67
$
1.31
$
1.28
$
0.83
* The value noted is considered a Non-GAAP
financial measure. For a reconciliation of Non-GAAP financial
measures, see Table 8. Non-GAAP Financial Measures.
TABLE 5. YEAR-TO-DATE NET INTEREST
INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
For the year ended
For the year ended
December 31, 2024
December 31, 2023
Average Outstanding
Balance
Interest Income/
Expense
Average
Yield/Rate(3)(4)
Average Outstanding
Balance
Interest Income/
Expense
Average
Yield/Rate(3)(4)
Interest-earning assets
Loans (1)
Commercial and industrial
$
635,881
$
51,188
8.05
%
$
580,451
$
42,901
7.39
%
Commercial real estate
1,400,661
99,316
7.09
%
1,302,568
83,441
6.41
%
Real estate construction
416,296
36,004
8.65
%
447,516
33,764
7.54
%
Residential real estate
563,176
26,505
4.71
%
565,711
23,799
4.21
%
Agricultural real estate
227,341
16,848
7.41
%
201,326
13,820
6.86
%
Agricultural
96,877
9,103
9.40
%
100,394
6,966
6.94
%
Consumer
100,995
6,851
6.78
%
106,542
6,522
6.12
%
Total loans
3,441,227
245,815
7.14
%
3,304,508
211,213
6.39
%
Securities
Taxable securities
979,926
39,091
3.99
%
1,027,726
23,873
2.32
%
Nontaxable securities
59,597
1,579
2.65
%
74,917
1,960
2.62
%
Total securities
1,039,523
40,670
3.91
%
1,102,643
25,833
2.34
%
Federal funds sold and other
195,378
10,358
5.30
%
193,941
9,666
4.98
%
Total interest-earning assets
$
4,676,128
296,843
6.35
%
$
4,601,092
246,712
5.36
%
Interest-bearing liabilities
Demand, savings and money market
deposits
$
2,453,139
61,518
2.51
%
$
2,362,365
46,206
1.96
%
Time deposits
770,772
28,891
3.75
%
827,652
24,267
2.93
%
Total interest-bearing deposits
3,223,911
90,409
2.80
%
3,190,017
70,473
2.21
%
FHLB advances
216,012
10,180
4.71
%
98,380
3,944
4.01
%
Other borrowings
175,516
10,092
5.75
%
254,666
13,277
5.21
%
Total interest-bearing liabilities
$
3,615,439
110,681
3.06
%
$
3,543,063
87,694
2.48
%
Net interest income
$
186,162
$
159,018
Interest rate spread
3.29
%
2.88
%
Net interest margin (2)
3.98
%
3.46
%
(1) Average loan balances include
nonaccrual loans.
(2) Net interest margin is calculated by
dividing annualized net interest income by average interest-earning
assets for the period.
(3) Tax exempt income is not included in
the above table on a tax-equivalent basis.
(4) Actual unrounded values are used to
calculate the reported yield or rate disclosed. Accordingly,
recalculations using the amounts in thousands as disclosed in this
report may not produce the same amounts.
TABLE 6. QUARTER-TO-DATE NET INTEREST
INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
For the three months
ended
For the three months
ended
December 31, 2024
December 31, 2023
Average Outstanding
Balance
Interest Income/
Expense
Average
Yield/Rate(3)(4)
Average Outstanding
Balance
Interest Income/
Expense
Average
Yield/Rate(3)(4)
Interest-earning assets
Loans (1)
Commercial and industrial
$
651,733
$
12,780
7.80
%
$
580,726
$
11,397
7.79
%
Commercial real estate
1,402,966
25,978
7.37
%
1,309,588
21,630
6.55
%
Real estate construction
463,885
9,654
8.28
%
439,708
9,000
8.12
%
Residential real estate
567,123
6,571
4.61
%
561,382
5,866
4.15
%
Agricultural real estate
262,529
5,071
7.68
%
196,468
3,421
6.91
%
Agricultural
82,986
1,705
8.17
%
100,226
1,928
7.63
%
Consumer
94,543
1,620
6.82
%
105,657
1,690
6.35
%
Total loans
3,525,765
63,379
7.15
%
3,293,755
54,932
6.62
%
Securities
Taxable securities
953,627
9,229
3.85
%
932,376
6,417
2.73
%
Nontaxable securities
59,071
387
2.61
%
53,215
354
2.64
%
Total securities
1,012,698
9,616
3.78
%
985,591
6,771
2.73
%
Federal funds sold and other
177,832
1,984
4.44
%
200,933
2,591
5.12
%
Total interest-earning assets
$
4,716,295
74,979
6.32
%
$
4,480,279
64,294
5.69
%
Interest-bearing liabilities
Demand, savings and money market
deposits
$
2,448,539
13,429
2.18
%
$
2,351,663
13,918
2.35
%
Time deposits
832,053
7,784
3.72
%
740,974
6,156
3.30
%
Total interest-bearing deposits
3,280,592
21,213
2.57
%
3,092,637
20,074
2.58
%
FHLB advances
194,914
2,158
4.41
%
102,432
1,005
3.89
%
Other borrowings
145,128
2,135
5.86
%
289,259
3,748
5.14
%
Total interest-bearing liabilities
$
3,620,634
25,506
2.80
%
$
3,484,328
24,827
2.83
%
Net interest income
$
49,473
$
39,467
Interest rate spread
3.52
%
2.86
%
Net interest margin (2)
4.17
%
3.49
%
(1) Average loan balances include
nonaccrual loans.
(2) Net interest margin is calculated by
dividing annualized net interest income by average interest-earning
assets for the period.
(3) Tax exempt income is not included in
the above table on a tax-equivalent basis.
(4) Actual unrounded values are used to
calculate the reported yield or rate disclosed. Accordingly,
recalculations using the amounts in thousands as disclosed in this
report may not produce the same amounts.
TABLE 7. QUARTER-OVER-QUARTER NET
INTEREST INCOME ANALYSIS (Unaudited)
(Dollars in thousands)
For the three months
ended
For the three months
ended
December 31, 2024
September 30, 2024
Average Outstanding
Balance
Interest Income/
Expense
Average
Yield/Rate(3)(4)
Average Outstanding
Balance
Interest Income/
Expense
Average
Yield/Rate(3)(4)
Interest-earning assets
Loans (1)
Commercial and industrial
$
651,733
$
12,780
7.80
%
$
659,697
$
13,213
7.97
%
Commercial real estate
1,402,966
25,978
7.37
%
1,351,407
24,196
7.12
%
Real estate construction
463,885
9,654
8.28
%
442,857
9,732
8.74
%
Residential real estate
567,123
6,571
4.61
%
578,702
6,912
4.75
%
Agricultural real estate
262,529
5,071
7.68
%
251,595
4,365
6.90
%
Agricultural
82,986
1,705
8.17
%
91,500
1,906
8.29
%
Consumer
94,543
1,620
6.82
%
100,127
1,765
7.01
%
Total loans
3,525,765
63,379
7.15
%
3,475,885
62,089
7.11
%
Securities
Taxable securities
953,627
9,229
3.85
%
995,713
9,809
3.92
%
Nontaxable securities
59,071
387
2.61
%
60,120
400
2.65
%
Total securities
1,012,698
9,616
3.78
%
1,055,833
10,209
3.85
%
Federal funds sold and other
177,832
1,984
4.44
%
200,209
2,667
5.30
%
Total interest-earning assets
$
4,716,295
74,979
6.32
%
$
4,731,927
74,965
6.30
%
Interest-bearing liabilities
Demand savings and money market
deposits
$
2,448,539
13,429
2.18
%
$
2,555,916
16,484
2.57
%
Time deposits
832,053
7,784
3.72
%
753,286
7,195
3.80
%
Total interest-bearing deposits
3,280,592
21,213
2.57
%
3,309,202
23,679
2.85
%
FHLB advances
194,914
2,158
4.41
%
252,751
3,089
4.86
%
Other borrowings
145,128
2,135
5.86
%
142,439
2,166
6.05
%
Total interest-bearing liabilities
$
3,620,634
25,506
2.80
%
$
3,704,392
28,934
3.11
%
Net interest income
$
49,473
$
46,031
Interest rate spread
3.52
%
3.19
%
Net interest margin (2)
4.17
%
3.87
%
(1) Average loan balances include
nonaccrual loans.
(2) Net interest margin is calculated by
dividing annualized net interest income by average interest-earning
assets for the period.
(3) Tax exempt income is not included in
the above table on a tax-equivalent basis.
(4) Actual unrounded values are used to
calculate the reported yield or rate disclosed. Accordingly,
recalculations using the amounts in thousands as disclosed in this
report may not produce the same amounts.
TABLE 8. NON-GAAP FINANCIAL
MEASURES (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,
2024
2024
2024
2024
2023
Total stockholders' equity
$
592,918
$
504,038
$
461,435
$
456,776
$
452,860
Less: goodwill
53,101
53,101
53,101
53,101
53,101
Less: core deposit intangibles, net
14,969
16,029
16,636
17,854
7,222
Less: mortgage servicing rights, net
—
—
25
50
75
Less: naming rights, net
957
968
979
989
1,000
Tangible common equity
$
523,891
$
433,940
$
390,694
$
384,782
$
391,462
Common shares outstanding at period
end
17,419,858
15,288,309
15,200,194
15,327,799
15,428,251
Diluted common shares outstanding at
period end
17,636,843
15,497,466
15,358,396
15,469,531
15,629,185
Book value per common share
$
34.04
$
32.97
$
30.36
$
29.80
$
29.35
Tangible book value per common
share
$
30.07
$
28.38
$
25.70
$
25.10
$
25.37
Tangible book value per diluted common
share
$
29.70
$
28.00
$
25.44
$
24.87
$
25.05
Total assets
$
5,332,047
$
5,355,233
$
5,245,517
$
5,239,036
$
5,034,592
Less: goodwill
53,101
53,101
53,101
53,101
53,101
Less: core deposit intangibles, net
14,969
16,029
16,636
17,854
7,222
Less: mortgage servicing rights, net
—
—
25
50
75
Less: naming rights, net
957
968
979
989
1,000
Tangible assets
$
5,263,020
$
5,285,135
$
5,174,776
$
5,167,042
$
4,973,194
Total stockholders' equity to total
assets
11.12
%
9.41
%
8.80
%
8.72
%
8.99
%
Tangible common equity to tangible
assets
9.95
%
8.21
%
7.55
%
7.45
%
7.87
%
Total average stockholders' equity
$
533,227
$
485,468
$
455,322
$
460,244
$
423,207
Less: average intangible assets
69,570
70,824
71,423
62,203
61,756
Average tangible common equity
$
463,657
$
414,644
$
383,899
$
398,041
$
361,451
Net income (loss) allocable to common
stockholders
$
16,986
$
19,851
$
11,716
$
14,068
$
(28,299
)
Less: net gain on acquisition
—
831
60
1,240
—
Less: net gain (loss) on securities
transactions
(2
)
206
(27
)
43
(50,618
)
Add: merger expenses
—
618
2,287
1,556
297
Add: BOLI tax expense
—
—
1,730
—
—
Add: amortization of intangible assets
1,071
1,148
1,254
935
775
Less: tax effect of pre-tax
adjustments
225
153
737
254
10,855
Core net income (loss) allocable to
common stockholders
$
17,834
$
20,427
$
16,217
$
15,022
$
12,536
Return on total average stockholders'
equity (ROAE) annualized
12.67
%
16.27
%
10.35
%
12.29
%
(26.53
)%
Average tangible common equity
$
463,657
$
414,644
$
383,899
$
398,041
$
361,451
Average impact from core earnings
adjustments
424
288
2,251
477
20,418
Core average tangible common
equity
$
464,081
$
414,932
$
386,150
$
398,518
$
381,869
Return on average tangible common
equity (ROATCE) annualized
15.30
%
19.92
%
13.31
%
14.96
%
(30.39
)%
Core return on average tangible common
equity (CROATCE) annualized
15.29
%
19.58
%
16.89
%
15.16
%
13.02
%
Non-interest expense
$
37,806
$
30,328
$
38,871
$
37,152
$
34,998
Less: merger expense
—
618
2,287
1,556
297
Less: amortization of intangible
assets
1,071
1,148
1,254
935
775
Adjusted non-interest expense
$
36,735
$
28,562
$
35,330
$
34,661
$
33,926
Net interest income
$
49,473
$
46,031
$
46,476
$
44,182
$
39,467
Non-interest income
8,816
9,317
8,958
11,731
(43,414
)
Less: net gain on acquisition and branch
sales
—
831
60
1,240
—
Less: net gains (losses) from securities
transactions
(2
)
206
(27
)
43
(50,618
)
Adjusted non-interest income
$
8,818
$
8,280
$
8,925
$
10,448
$
7,204
Net interest income plus adjusted
non-interest income
$
58,291
$
54,311
$
55,401
$
54,630
$
46,671
Non-interest expense to net interest
income plus non-interest income
64.86
%
54.80
%
70.12
%
66.45
%
(886.70
)%
Efficiency ratio
63.02
%
52.59
%
63.77
%
63.45
%
72.69
%
Average assets
5,163,166
5,205,017
5,196,259
5,152,915
4,892,712
Core non-interest expense to average
assets
2.83
%
2.18
%
2.73
%
2.71
%
2.75
%
Net income (loss) allocable to common
stockholders
$
16,986
$
19,851
$
11,716
$
14,068
$
(28,299
)
Less: net gain on acquisition
—
831
60
1,240
—
Less: net gain (loss) on securities
transactions
(2
)
206
(27
)
43
(50,618
)
Add: merger expenses
—
618
2,287
1,556
297
Add: BOLI tax expense
—
—
1,730
—
—
Add: amortization of intangible assets
1,071
1,148
1,254
935
775
Less: tax effect of intangible assets
amortization
225
153
737
254
10,855
Core net income (loss) allocable to
common stockholders
$
17,834
$
20,427
$
16,217
$
15,022
$
12,536
Add: income tax provision
3,399
3,986
4,582
3,693
(11,357
)
Add: provision (reversal) of credit
losses
98
1,183
265
1,000
711
Add: tax effect of pre-tax adjustments
225
153
737
254
10,855
Core pre-tax, pre-provision
income
$
21,556
$
25,749
$
21,801
$
19,969
$
12,745
Total average assets
$
5,163,166
$
5,205,017
$
5,196,259
$
5,152,915
$
4,892,712
Total average stockholders' equity
$
533,227
$
485,468
$
455,322
$
460,244
$
423,207
Weighted average diluted common
shares
16,262,965
15,451,545
15,377,980
15,569,225
15,417,200
Diluted earnings (loss) per
share
$
1.04
$
1.28
$
0.76
$
0.90
$
(1.84
)
Core earnings per diluted share
$
1.10
$
1.32
$
1.05
$
0.96
$
0.81
Core pre-tax pre-provision earnings per
diluted share
$
1.33
$
1.67
$
1.31
$
1.28
$
0.83
Return on average assets (ROAA)
annualized
1.31
%
1.52
%
0.91
%
1.10
%
(2.29
)%
Core return on average assets
1.37
%
1.56
%
1.25
%
1.17
%
1.01
%
Return on average equity
12.67
%
16.27
%
10.35
%
12.29
%
(26.53
)%
Core return on average equity
13.29
%
16.73
%
14.25
%
13.11
%
11.21
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250122149733/en/
Investor Contact:
Brian J. Katzfey VP, Director of Corporate Development and
Investor Relations Equity Bancshares, Inc. (316) 858-3128
bkatzfey@equitybank.com
Media Contact:
Russell Colburn Public Relations and Communication Manager
Equity Bancshares, Inc. (913) 583-8011 rcolburn@equitybank.com
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