• Equity Bancshares, Inc. Reports First Quarter Results; Exhibiting Stability of Deposits and Continued Improvement in Asset Quality

    المصدر: Nasdaq GlobeNewswire / 18 أبريل 2023 17:56:40   America/New_York

    WICHITA, Kan., April 18, 2023 (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 $12.3 million and $0.77 earnings per diluted share for the quarter ended March 31, 2023.

    “Equity positioned itself to capture deposits to ensure balance sheet stability by adhering to previously established risk management guidelines in our loan and investment portfolios. During the quarter, Equity experienced steady deposits and have used that stability as a catalyst to grow and increase relationships with commercial customers,” said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc. “Equity is positioned to take advantage of opportunities through the potential economic downturn. We have high levels of regulatory and tangible capital, excellent credit quality, and expertise in mergers and acquisitions. We will look to be the partner of choice in our footprint.”

    Mr. Elliott continued, “As a strong community bank, we have a conservative risk management philosophy toward managing concentrations across industries and geographies. As a result, we have a diversified, stable deposit base due to the same granularity we exhibit in our loan portfolio. Our balance sheet risk remains attractive, exhibited by our loan to deposit ratio of 77.7%. We have not taken outsized risks or over leveraged the balance sheet to artificially boost earnings in the short term. We will continue to be a stable and reliable financial expert to our customers and grow our tangible book value through prudent capital management.”

    Notable Items:

    • Total deposits increased $46.1 million during the quarter or 4.4% linked quarter annualized while the Loan to Deposit ratio held flat at 77.7% as compared to 78.1% as of December 31, 2022.
    • Cash and cash equivalents increased $145.9 million during the quarter growing as a percentage of Total Assets to 4.9% in the first quarter as compared to 2.1% linked quarter.
    • Equity repurchased $9.6 million of common stock representing 2.0% of shares outstanding as of the end of the first quarter.
    • The Company’s loan growth, excluding PPP and branch sales, was $19.1 million, or 2.4% linked quarter annualized including 6.4% annualized growth within the commercial and commercial real estate portfolios.
    • Book Value per Common Share increased $1.29 linked quarter to $27.03, while Tangible Book Value per Common Share increased $1.29 to $22.96.
    • The ratio of non-performing assets to total assets improved 4bps linked quarter to 0.3%, and the ratio of Classified Assets to Bank Regulatory Capital remained relatively constant at 10.1% from 10.0%.

    Financial Results for the Quarter Ended March 31, 2023

    Net income allocable to common stockholders was $12.3 million, or $0.77 per diluted share, for the three months ended March 31, 2023, as compared to $11.6 million, or $0.72 per diluted share, for the three months ended December 31, 2022. The increase during the quarter was primarily driven by an increase in non-interest income of $760 thousand and a decrease in income tax expense of $1.1 million.

    Net Interest Income

    Net interest income was $39.1 million for the three months ended March 31, 2023, as compared to $42.0 million for the three months ended December 31, 2022, a decrease of $2.9 million, or 6.9%. The yield on interest-earning assets increased 27 basis points to 4.94%. The cost of interest-bearing deposits increased by 68 basis points during the quarter, moving from 1.05% at December 31, 2022, to 1.73% at March 31, 2023.

    During the quarter, the Company enhanced its overall liquidity position by adding on-balance sheet cash, resulting in a three basis point adverse impact to net interest margin due to the increase in average earning assets and negligible impact to net interest income.

    Average interest-bearing deposits moved up slightly during the quarter as the Company experienced a continued compositional shift from noninterest-bearing deposits into interest bearing categories. At March 31, 2023, non-interest bearing deposits declined $85.2 million from December 31, 2022 and $243.1 million from March 31, 2022. The majority of the decline over the last 12 months has been related to average balance declines primarily associated with spending excess liquidity from pandemic governmental support programs.

    Provision for Credit Losses

    During the three months ended March 31, 2023, there was a net release of $366 thousand compared to a net release of $151 thousand in the previous quarter. The release of provision for the quarter is the result of continued positive credit trends without realization of meaningful losses. The Company continues to estimate the allowance for credit loss with assumptions that anticipate slower prepayments rates and continued market disruption caused by elevated inflation, supply chain issues and the impact of monetary policy on consumers and businesses. For the three months ended March 31, 2023, we had net charge-offs of $377 thousand as compared to $501 thousand for the three months ended December 31, 2022.

    Non-Interest Income

    Total non-interest income was $9.1 million for the three months ended March 31, 2023, as compared to $8.3 million for the three months ended December 31, 2022, or an increase of 9.1%, quarter-over-quarter. The $760 thousand increase was primarily due to increases in bank owned life insurance of $825 thousand and other non-interest income of $530 thousand primarily consisting of asset quality improvements on previously acquired loan relationships, partially offset by decreases in gain on acquisition and branch sales of $422.

    Non-Interest Expense

    Total non-interest expense for the quarter ended March 31, 2023, was $33.7 million as compared to $35.2 million for the quarter ended December 31, 2022. The $1.5 million change was primarily due to decreases in advertising and business development of $744 thousand, data processing of $418 thousand and other non-interest expense of $308 thousand, partially offset by an increase in salaries and employee benefits of $579 thousand.

    Income Tax Expense

    At March 31, 2023, the effective tax rate for the quarter was 17.0% as compared to an annual rate of 17.9% in 2022. The reduction as compared to 2022 is associated with an increase in tax benefits related to the implementation of tax planning initiatives and associated reductions in state income tax expense offset by a reduction to tax credits when taken as a percentage of pre-tax income.

    Loans, Total Assets and Funding

    Loans held for investment were $3.33 billion at March 31, 2023, increasing $19.1 million or 2.3% annualized, from December 31, 2022. Included in the annual growth, is $36.3 million within the commercial and industrial and commercial real estate portfolios, or 6.4%. Total assets were $5.16 billion as of March 31, 2023 increasing $172.7 million or 3.4% from December 31, 2022.

    Total deposits were $4.29 billion at March 31, 2023, increasing 4.3% annualized compared to previous quarter end. Of this balance, non-interest bearing accounts comprise approximately 23.6%. Advances from the FHLB declined $27.6 million to $111.2 million during the quarter, while borrowings from the Federal Reserve’s Bank Term Funding Program increased to $140.0 million at March 31, 2023.

    Asset Quality

    As of March 31, 2023, Equity’s allowance for credit losses to total loans remained materially consistent at 1.4% as compared to December 31, 2022. Nonperforming assets were $17.1 million as of March 31, 2023, or 0.3% of total assets, compared to $18.2 million at December 31, 2022, or 0.4% of total assets. Non-accrual loans were $16.6 million at March 31, 2023, as compared to $17.6 million at December 31, 2022. Total classified assets, including loans rated special mention or worse, other real estate owned, excluding previous branch locations, and other repossessed assets were $59.9 million, or 10.1% of regulatory capital, up from $58.7 million, or 10.0% of regulatory capital as of December 31, 2022.

    Capital

    During the quarter, the Company realized expansion in both book and tangible capital, as well as book and tangible capital per share as dividends and costs incurred to repurchase shares were outpaced by earnings and partial recovery of the negative fair value mark on the investment portfolio.

    The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.2%, the total capital to risk-weighted assets was 16.0% and the total leverage ratio was 9.6% at March 31, 2023. At December 31, 2022, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.3%, the total capital to risk-weighted assets ratio was 16.1% and the total leverage ratio was 9.6%.

    The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.4%, a ratio of total capital to risk-weighted assets of 15.7% and a total leverage ratio of 10.8% at March 31, 2023. At December 31, 2022, 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 10.8%.

    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, Eric Newell, will hold a conference call and webcast to discuss first quarter results on Wednesday, April 19, 2023, 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 two hours following the close of the call until April 26, 2023, accessible 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,” “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 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, 2023, 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.

    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. Quarterly Consolidated Statements of Income
    • Table 2. Consolidated Balance Sheets
    • Table 3. Selected Financial Highlights
    • Table 4. Quarter-To-Date Net Interest Income Analysis
    • Table 5. Quarter-Over-Quarter Net Interest Income Analysis
    • Table 6. Non-GAAP Financial Measures
    TABLE 1. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) 
    (Dollars in thousands, except per share data)               
      As of and for the three months ended 
      March 31,
    2023    		  December 31,
    2022    		  September 30,
    2022    		  June 30,
    2022    		  March 31,
    2022    		 
    Interest and dividend income               
    Loans, including fees $48,381  $46,149  $41,555  $36,849  $36,306 
    Securities, taxable  5,947   5,946   5,792   5,584   5,391 
    Securities, nontaxable  669   678   687   678   655 
    Federal funds sold and other  1,126   651   514   513   300 
    Total interest and dividend income  56,123   53,424   48,548   43,624   42,652 
    Interest expense               
    Deposits  13,821   8,013   4,403   2,183   1,722 
    Federal funds purchased and retail repurchase agreements  195   82   71   46   33 
    Federal Home Loan Bank advances  1,018   1,500   409   176   9 
    Federal Reserve Bank borrowings  135   —   —   —   — 
    Subordinated debt  1,844   1,798   1,721   1,653   1,599 
    Total interest expense  17,013   11,393   6,604   4,058   3,363 
                    
    Net interest income  39,110   42,031   41,944   39,566   39,289 
    Provision (reversal) for credit losses  (366)  (151)  (136)  824   (412)
    Net interest income after provision (reversal) for credit losses  39,476   42,182   42,080   38,742   39,701 
    Non-interest income               
    Service charges and fees  2,545   2,705   2,788   2,617   2,522 
    Debit card income  2,554   2,557   2,682   2,810   2,628 
    Mortgage banking  88   116   310   428   562 
    Increase in value of bank-owned life insurance  1,583   758   754   736   865 
    Net gain on acquisition and branch sales  —   422   —   540   — 
    Net gains (losses) from securities transactions  32   14   (17)  (32)  40 
    Other  2,287   1,757   2,452   2,538   2,405 
    Total non-interest income  9,089   8,329   8,969   9,637   9,022 
    Non-interest expense               
    Salaries and employee benefits  16,692   16,113   15,442   15,383   15,068 
    Net occupancy and equipment  2,879   2,919   3,127   3,007   3,170 
    Data processing  3,916   4,334   4,138   3,642   3,769 
    Professional fees  1,384   1,404   1,265   1,111   1,171 
    Advertising and business development  1,159   1,903   1,191   972   976 
    Telecommunications  485   517   487   442   470 
    FDIC insurance  360   360   340   260   180 
    Courier and postage  458   533   436   489   423 
    Free nationwide ATM cost  525   510   551   541   501 
    Amortization of core deposit intangibles  918   924   957   1,111   1,050 
    Loan expense  117   262   174   207   185 
    Other real estate owned  119   388   188   14   (1)
    Merger expenses  —   68   115   88   323 
    Other  4,706   5,014   3,825   4,169   2,174 
    Total non-interest expense  33,718   35,249   32,236   31,436   29,459 
    Income (loss) before income tax  14,847   15,262   18,813   16,943   19,264 
    Provision for income taxes (benefit)  2,524   3,654   3,642   1,684   3,614 
    Net income (loss) and net income (loss) allocable to common stockholders $12,323  $11,608  $15,171  $15,259  $15,650 
    Basic earnings (loss) per share $0.78  $0.73  $0.94  $0.95  $0.94 
    Diluted earnings (loss) per share $0.77  $0.72  $0.93  $0.94  $0.93 
    Weighted average common shares  15,858,808   15,948,360   16,056,658   16,206,978   16,652,556 
    Weighted average diluted common shares  16,028,051   16,204,185   16,273,231   16,413,248   16,869,152 


    TABLE 2. CONSOLIDATED BALANCE SHEETS (Unaudited)
    (Dollars in thousands)
      March 31,
    2023    		  December 31,
    2022    		  September 30,
    2022    		  June 30,
    2022    		  March 31,
    2022    		 
    ASSETS               
    Cash and due from banks $249,982  $104,013  $155,039  $103,126  $89,764 
    Federal funds sold  384   415   374   458   286 
    Cash and cash equivalents  250,366   104,428   155,413   103,584   90,050 
    Available-for-sale securities  1,183,247   1,184,390   1,198,962   1,288,180   1,352,894 
    Held-to-maturity securities  1,944   1,948   —   —   — 
    Loans held for sale  648   349   1,518   1,714   1,575 
    Loans, net of allowance for credit losses(1)  3,285,515   3,265,701   3,208,524   3,175,208   3,194,987 
    Other real estate owned, net  4,171   4,409   10,412   12,969   9,897 
    Premises and equipment, net  104,789   101,492   100,566   101,212   103,168 
    Bank-owned life insurance  122,971   123,176   122,418   121,665   120,928 
    Federal Reserve Bank and Federal Home Loan Bank stock  33,359   21,695   24,428   21,479   19,890 
    Interest receivable  20,461   20,630   18,497   16,519   16,923 
    Goodwill  53,101   53,101   53,101   53,101   54,465 
    Core deposit intangibles, net  9,678   10,596   11,598   12,554   13,830 
    Other  86,466   89,736   94,978   93,971   100,016 
    Total assets $5,156,716  $4,981,651  $5,000,415  $5,002,156  $5,078,623 
    LIABILITIES AND STOCKHOLDERS’ EQUITY               
    Deposits               
    Demand $1,012,671  $1,097,899  $1,217,094  $1,194,863  $1,255,793 
    Total non-interest-bearing deposits  1,012,671   1,097,899   1,217,094   1,194,863   1,255,793 
    Demand, savings and money market  2,334,463   2,329,584   2,335,847   2,445,545   2,511,478 
    Time  939,799   814,324   673,670   651,363   612,399 
    Total interest-bearing deposits  3,274,262   3,143,908   3,009,517   3,096,908   3,123,877 
    Total deposits  4,286,933   4,241,807   4,226,611   4,291,771   4,379,670 
    Federal funds purchased and retail repurchase agreements  45,098   46,478   47,443   52,750   48,199 
    Federal Home Loan Bank advances and Federal Reserve Bank borrowings  251,222   138,864   186,001   80,000   50,000 
    Subordinated debt  96,522   96,392   96,263   96,135   96,010 
    Contractual obligations  19,372   15,218   15,562   15,813   17,307 
    Interest payable and other liabilities  32,446   32,834   32,729   37,572   35,422 
    Total liabilities  4,731,593   4,571,593   4,604,609   4,574,041   4,626,608 
    Commitments and contingent liabilities               
    Stockholders’ equity               
    Common stock  206   205   204   204   204 
    Additional paid-in capital  486,658   484,989   482,668   480,897   480,106 
    Retained earnings  150,810   140,095   130,114   116,576   102,632 
    Accumulated other comprehensive income (loss), net of tax  (101,238)  (113,511)  (120,918)  (77,426)  (50,012)
    Treasury stock  (111,313)  (101,720)  (96,262)  (92,136)  (80,915)
    Total stockholders’ equity  425,123   410,058   395,806   428,115   452,015 
    Total liabilities and stockholders’ equity $5,156,716  $4,981,651  $5,000,415  $5,002,156  $5,078,623 
                    
    (1) Allowance for credit losses $45,103  $45,847  $46,499  $48,238  $47,590 


    TABLE 3. SELECTED FINANCIAL HIGHLIGHTS (Unaudited) 
    (Dollars in thousands, except per share data)               
      As of and for the three months ended 
      March 31,
    2023
    		  December 31,
    2022
    		  September 30,
    2022
    		  June 30,
    2022
    		  March 31,
    2022
    		 
    Loans Held For Investment by Type               
    Commercial real estate $1,746,834  $1,721,269  $1,655,646  $1,643,068  $1,552,134 
    Commercial and industrial  605,576   594,862   607,722   578,899   629,181 
    Residential real estate  563,791   570,550   573,431   578,936   613,928 
    Agricultural real estate  202,274   199,189   200,415   197,938   198,844 
    Agricultural  106,169   120,003   115,048   124,753   150,077 
    Consumer  105,974   105,675   102,761   99,852   98,413 
    Total loans held-for-investment  3,330,618   3,311,548   3,255,023   3,223,446   3,242,577 
    Allowance for credit losses  (45,103)  (45,847)  (46,499)  (48,238)  (47,590)
    Net loans held for investment $3,285,515  $3,265,701  $3,208,524  $3,175,208  $3,194,987 
                    
                    
    Asset Quality Ratios               
    Allowance for credit losses on loans to total loans  1.35%  1.38%  1.43%  1.50%  1.47%
    Past due or nonaccrual loans to total loans  0.66%  0.72%  0.94%  0.78%  0.82%
    Nonperforming assets to total assets  0.33%  0.37%  0.59%  0.74%  0.74%
    Nonperforming assets to total loans plus other real estate owned  0.51%  0.55%  0.91%  1.14%  1.15%
    Classified assets to bank total regulatory capital  10.09%  9.98%  11.03%  13.08%  17.12%
                    
                    
    Selected Average Balance Sheet Data (QTD Average)               
    Investment securities $1,185,482  $1,184,452  $1,272,414  $1,319,099  $1,397,421 
    Total gross loans receivable  3,305,681   3,275,284   3,240,998   3,216,853   3,195,787 
    Interest-earning assets  4,611,019   4,538,177   4,602,568   4,675,967   4,715,389 
    Total assets  4,994,417   4,930,231   4,988,755   5,067,686   5,108,120 
    Interest-bearing deposits  3,235,557   3,032,902   3,081,245   3,112,300   3,163,777 
    Borrowings  247,932   299,191   221,514   238,062   160,094 
    Total interest-bearing liabilities  3,483,489   3,335,557   3,302,759   3,350,362   3,323,871 
    Total deposits  4,279,451   4,185,904   4,283,855   4,340,196   4,393,879 
    Total liabilities  4,573,918   4,531,959   4,552,564   4,630,204   4,615,521 
    Total stockholders’ equity  420,500   398,270   436,191   437,483   492,599 
    Tangible common equity*  356,053   332,820   369,746   368,505   422,418 
                    
                    
    Performance ratios               
    Return on average assets (ROAA) annualized  1.00%  0.93%  1.21%  1.21%  1.24%
    Return on average assets before income tax and provision for loan losses*  1.18%  1.22%  1.49%  1.41%  1.50%
    Return on average equity (ROAE) annualized  11.89%  11.56%  13.80%  13.99%  12.88%
    Return on average equity before income tax and provision for loan losses*  13.97%  15.05%  16.99%  16.29%  15.52%
    Return on average tangible common equity (ROATCE) annualized*  14.89%  14.74%  17.12%  17.60%  15.85%
    Yield on loans annualized  5.94%  5.59%  5.09%  4.59%  4.61%
    Cost of interest-bearing deposits annualized  1.73%  1.05%  0.57%  0.28%  0.22%
    Cost of total deposits annualized  1.31%  0.76%  0.41%  0.20%  0.16%
    Net interest margin annualized  3.44%  3.67%  3.62%  3.39%  3.38%
    Efficiency ratio*  70.00%  70.47%  63.07%  64.38%  60.36%
    Non-interest income / average assets  0.74%  0.67%  0.71%  0.76%  0.72%
    Non-interest expense / average assets  2.74%  2.84%  2.56%  2.49%  2.34%
                    
                    
    Capital Ratios               
    Tier 1 Leverage Ratio  9.60%  9.61%  9.46%  9.11%  9.07%
    Common Equity Tier 1 Capital Ratio  12.21%  12.26%  12.15%  12.08%  11.81%
    Tier 1 Risk Based Capital Ratio  12.83%  12.88%  12.77%  12.71%  12.43%
    Total Risk Based Capital Ratio  16.00%  16.08%  15.99%  15.97%  15.66%
    Total stockholders’ equity to total assets  8.24%  8.23%  7.92%  8.56%  8.90%
    Tangible common equity to tangible assets*  7.09%  7.02%  6.68%  7.32%  7.63%
    Dividend payout ratio  10.49%  14.01%  10.78%  8.61%  8.58%
    Book value per common share $27.03  $25.74  $24.71  $26.58  $27.47 
    Tangible book value per common share* $22.96  $21.67  $20.59  $22.42  $23.24 
    Tangible book value per diluted common share* $22.83  $21.35  $20.33  $22.17  $22.95 
                    
    * The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures, see Table 6. Non-GAAP Financial Measures. 


    TABLE 4. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
    (Dollars in thousands)
     For the three months ended  For the three months ended 
     March 31, 2023  March 31, 2022 
     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$577,452  $9,634   6.77% $575,563  $7,761   5.47%
    Commercial real estate 1,344,727   20,112   6.07%  1,190,128   13,451   4.58%
    Real estate construction 404,016   6,695   6.72%  342,536   3,299   3.91%
    Residential real estate 570,139   5,802   4.13%  632,581   5,665   3.63%
    Agricultural real estate 202,901   3,114   6.22%  202,145   2,663   5.34%
    Agricultural 100,251   1,478   5.98%  149,676   2,316   6.28%
    Consumer 106,195   1,546   5.91%  103,158   1,151   4.53%
    Total loans 3,305,681   48,381   5.94%  3,195,787   36,306   4.61%
    Securities                 
    Taxable securities 1,083,645   5,947   2.23%  1,285,942   5,391   1.70%
    Nontaxable securities 101,837   669   2.67%  111,479   655   2.38%
    Total securities 1,185,482   6,616   2.26%  1,397,421   6,046   1.75%
    Federal funds sold and other 119,856   1,126   3.81%  122,181   300   1.00%
    Total interest-earning assets$4,611,019   56,123   4.94% $4,715,389   42,652   3.67%
    Interest-bearing liabilities                 
    Demand, savings and money market deposits$2,350,042   8,453   1.46% $2,534,102   996   0.16%
    Time deposits 885,515   5,368   2.46%  629,675   726   0.47%
    Total interest-bearing deposits 3,235,557   13,821   1.73%  3,163,777   1,722   0.22%
    FHLB advances 89,078   1,018   4.64%  9,943   9   0.38%
    Other borrowings 158,854   2,174   5.55%  150,151   1,632   4.41%
    Total interest-bearing liabilities$3,483,489   17,013   1.98% $3,323,871   3,363   0.41%
                      
    Net interest income   $39,110        $39,289    
    Interest rate spread       2.96%        3.26%
                      
    Net interest margin (2)       3.44%        3.38%
                      
    (1) Average loan balances include nonaccrual loans. 
    (2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. 
    (3) Tax exempt income is not included in the above table on a tax-equivalent basis. 


    TABLE 5. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)
    (Dollars in thousands)
     For the three months ended  For the three months ended 
     March 31, 2023  December 31, 2022 
     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$577,452  $9,634   6.77% $594,221  $9,264   6.19%
    Commercial real estate 1,344,727   20,112   6.07%  1,327,438   19,127   5.72%
    Real estate construction 404,016   6,695   6.72%  367,935   5,827   6.28%
    Residential real estate 570,139   5,802   4.13%  576,357   5,667   3.90%
    Agricultural real estate 202,901   3,114   6.22%  200,492   3,353   6.64%
    Agricultural 100,251   1,478   5.98%  104,146   1,443   5.50%
    Consumer 106,195   1,546   5.91%  104,695   1,468   5.57%
    Total loans 3,305,681   48,381   5.94%  3,275,284   46,149   5.59%
    Securities                 
    Taxable securities 1,083,645   5,947   2.23%  1,083,986   5,946   2.18%
    Nontaxable securities 101,837   669   2.67%  100,466   678   2.68%
    Total securities 1,185,482   6,616   2.26%  1,184,452   6,624   2.22%
    Federal funds sold and other 119,856   1,126   3.81%  78,441   651   3.29%
    Total interest-earning assets$4,611,019   56,123   4.94% $4,538,177   53,424   4.67%
    Interest-bearing liabilities                 
    Demand savings and money market deposits$2,350,042   8,453   1.46% $2,294,639   5,336   0.92%
    Time deposits 885,515   5,368   2.46%  738,263   2,677   1.44%
    Total interest-bearing deposits 3,235,557   13,821   1.73%  3,032,902   8,013   1.05%
    FHLB advances 89,078   1,018   4.64%  155,964   1,500   3.82%
    Other borrowings 158,854   2,174   5.55%  146,691   1,880   5.09%
    Total interest-bearing liabilities$3,483,489   17,013   1.98% $3,335,557   11,393   1.36%
                      
    Net interest income   $39,110        $42,031    
    Interest rate spread       2.96%        3.31%
                      
    Net interest margin (2)       3.44%        3.67%
                      
    (1) Average loan balances include nonaccrual loans. 
    (2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period. 
    (3) Tax exempt income is not included in the above table on a tax-equivalent basis. 


    TABLE 6. NON-GAAP FINANCIAL MEASURES (Unaudited) 
    (Dollars in thousands, except per share data)               
      As of and for the three months ended 
      March 31,
    2023
    		  December 31,
    2022
    		  September 30,
    2022
    		  June 30,
    2022
    		  March 31,
    2022
    		 
                    
    Total stockholders’ equity $425,123  $410,058  $395,806  $428,115  $452,015 
    Less: goodwill  53,101   53,101   53,101   53,101   54,465 
    Less: core deposit intangibles, net  9,678   10,596   11,598   12,554   13,830 
    Less: mortgage servicing rights, net  151   176   201   226   251 
    Less: naming rights, net  1,033   1,044   1,054   1,065   1,076 
    Tangible common equity $361,160  $345,141  $329,852  $361,169  $382,393 
    Common shares outstanding at period end  15,730,257   15,930,112   16,017,834   16,106,818   16,454,966 
    Diluted common shares outstanding at period end  15,822,536   16,163,253   16,225,591   16,289,635   16,662,779 
    Book value per common share $27.03  $25.74  $24.71  $26.58  $27.47 
    Tangible book value per common share $22.96  $21.67  $20.59  $22.42  $23.24 
    Tangible book value per diluted common share $22.83  $21.35  $20.33  $22.17  $22.95 
                    
    Total assets $5,156,716  $4,981,651  $5,000,415  $5,002,156  $5,078,623 
    Less: goodwill  53,101   53,101   53,101   53,101   54,465 
    Less: core deposit intangibles, net  9,678   10,596   11,598   12,554   13,830 
    Less: mortgage servicing rights, net  151   176   201   226   251 
    Less: naming rights, net  1,033   1,044   1,054   1,065   1,076 
    Tangible assets $5,092,753  $4,916,734  $4,934,461  $4,935,210  $5,009,001 
    Total stockholders’ equity to total assets  8.24%  8.23%  7.92%  8.56%  8.90%
    Tangible common equity to tangible assets  7.09%  7.02%  6.68%  7.32%  7.63%
                    
    Total average stockholders’ equity $420,500  $398,270  $436,191  $437,483  $492,599 
    Less: average intangible assets  64,447   65,450   66,445   68,978   70,181 
    Average tangible common equity $356,053  $332,820  $369,746  $368,505  $422,418 
    Net income (loss) allocable to common stockholders $12,323  $11,608  $15,171  $15,259  $15,650 
    Add: amortization of intangible assets  954   961   992   1,148   1,085 
    Less: tax effect of intangible assets amortization  200   202   208   241   228 
    Adjusted net income (loss) allocable to common stockholders $13,077  $12,367  $15,955  $16,166  $16,507 
    Return on total average stockholders’ equity (ROAE) annualized  11.89%  11.56%  13.80%  13.99%  12.88%
    Return on average tangible common equity (ROATCE) annualized  14.89%  14.74%  17.12%  17.60%  15.85%
                    
    Non-interest expense $33,718  $35,248  $32,236  $31,436  $29,459 
    Less: loss on debt extinguishment  —   —   —   —   — 
    Less: merger expense  —   68   115   88   323 
    Adjusted non-interest expense $33,718  $35,180  $32,121  $31,348  $29,136 
    Net interest income $39,110  $42,031  $41,944  $39,566  $39,289 
    Non-interest income  9,089   8,330   8,969   9,637   9,022 
    Less: net gain on acquisition and branch sales  —   422   —   540   — 
    Less: net gains (losses) from securities transactions  32   14   (17)  (32)  40 
    Adjusted non-interest income $9,057  $7,894  $8,986  $9,129  $8,982 
    Net interest income plus adjusted non-interest income $48,167  $49,925  $50,930  $48,695  $48,271 
    Non-interest expense to net interest income plus non-interest income  69.96%  69.99%  63.32%  63.89%  60.98%
    Efficiency ratio  70.00%  70.47%  63.07%  64.38%  60.36%
    Net income (loss) allocable to common stockholders $12,323  $11,608  $15,171  $15,259  $15,650 
    Add: income tax provision  2,524   3,654   3,642   1,684   3,614 
    Add: provision (reversal) of credit losses  (366)  (151)  (136)  824   (412)
    Pre-tax, pre-provision income $14,481  $15,111  $18,677  $17,767  $18,852 
    Total average assets $4,994,417  $4,930,231  $4,988,755  $5,067,687  $5,108,120 
    Total average stockholders’ equity $420,500  $398,270  $436,191  $437,483  $492,599 
    Return on average assets (ROAA) annualized  1.00%  0.93%  1.21%  1.21%  1.24%
    Adjusted return on average assets  1.18%  1.22%  1.49%  1.41%  1.50%
    Adjusted return on average equity  13.97%  15.05%  16.99%  16.29%  15.52%

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