• Equity Bancshares, Inc. Reports Second Quarter Results, Continued Organic Growth

    المصدر: Nasdaq GlobeNewswire / 19 يوليو 2022 16:56:20   America/New_York

    WICHITA, Kansas, July 19, 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 $15.3 million and $0.94 earnings per diluted share for the quarter ended June 30, 2022.

    “In 2022, we’ve demonstrated our ability to deliver organic growth absent a merger partner. Our 8.5% organic loan growth represents the hard work of our sales and operations teams to provide value to customers,” said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc. “We have a great leadership team dedicated to driving loans, treasury services, deposit products, and new products such as our recently introduced healthcare services offerings. These efforts to deliver sophisticated products and customer experience solutions had the effect of increasing earnings, improving net interest margin, increasing fee income and improving our loan to deposit ratio.”

    “In the third quarter, we expect to continue to strengthen our loan to deposit ratio and to serve as a resource for our customers as they continue to navigate economic challenges for their businesses and families,” said Mr. Elliott. “Our brand reflects our entrepreneurial spirit, and as we add talent to our leadership teams, new products and services, and new service channels, we’ll continue to operate with our local customers in mind.”

    Notable Items:

    • During the second quarter, the Company realized continued loan growth excluding the impact of PPP assets and the branch sale, bring annualized loan growth year-to-date to 8.51%.
    • During the quarter, the Company realized linked period growth of 5.38% in service fee income, driven by additional debit card revenue and service charges on Equity Bank deposit products.
    • The Company closed on the sale of three branches to United Bank & Trust in Belleville, Clyde and Concordia, Kansas, which resulted in a net gain of $540 thousand.
    • At June 30, 2022, classified assets to regulatory capital has declined to 13.1% from 17.1% at March 31, 2022.
    • The Company continued to emphasize investor returns through repurchase of 355,844 shares during the quarter, at an average price of $31.54, as well as the continuation of our quarterly dividend program at $0.08 per share.  Under the currently active repurchase program, the Company is authorized to purchase an additional 126,900 shares.

    Financial Results for the Quarter Ended June 30, 2022

    Net income allocable to common stockholders was $15.3 million, or $0.94 per diluted share, for the three months ended June 30, 2022, as compared to $15.7 million, or $0.93 per diluted share, for the three months ended March 31, 2022. The decrease for the second quarter of 2022 is primarily due to increases in non-interest expense of $2.0 million and provision for credit losses of $1.2 million, partially offset by an increase in non-interest income of $615 thousand and net interest income of $277 thousand.

    Net Interest Income

    Net interest income was $39.6 million for the three months ended June 30, 2022, as compared to $39.3 million for the three months ended March 31, 2022, an increase of $277 thousand, or 0.7%.   The yield on interest-earning assets increased 7-basis points to 3.74% during the quarter ended June 30, 2022, as compared to 3.67% for the quarter ended March 31, 2022. The cost of interest-bearing deposits increased by 6 basis points during the quarter, moving from 0.22% at March 31, 2022 to 0.28% at June 30, 2022.

    Provision for Credit Losses

    During the three months ended June 30, 2022, there was a provision to the allowance for credit losses of $824 thousand compared to a net release of $412 thousand in the previous quarter. The comparative increase was primarily driven by the increase in general reserves driven by slowing prepayment speeds and the perceived risk associated with the current economic environment, which includes, significant inflation, supply chain concerns and the impact of monetary policy on consumers and businesses.   For the three months ended June 30, 2022, we had net charge-offs of $176 thousand as compared to $362 thousand for the three months ended March 31, 2022.

    Non-Interest Income

    Total non-interest income was $9.6 million for the three months ended June 30, 2022, as compared to $9.0 million for the three months ended March 31, 2022, or an increase of 6.8%, quarter over quarter. The increase was primarily due to an increase in net gain on acquisition and branch sales of $540 thousand.

    Non-Interest Expense

    Total non-interest expense for the quarter ended June 30, 2022, was $31.4 million as compared to $29.5 million for the quarter ended March 31, 2022. The $2.0 million change was primarily due to increases in other non-interest expense of $2.0 million driven by a provision to reserve for unfunded commitments of $288 thousand for the quarter ended June 30, 2022, compared to a release of reserve for unfunded commitments of $1.0 million for the quarter ended March 31, 2022.

    Asset Quality

    As of June 30, 2022, Equity’s allowance for credit losses to total loans remained constant at 1.5%, as compared to March 31, 2022. Nonperforming assets were $37.0 million as of June 30, 2022, or 0.7% of total assets, compared to $37.5 million at March 31, 2022, or 0.7% of total assets. Non-accrual loans were $18.9 million at June 30, 2022, as compared to $20.7 million at March 31, 2022. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $72.1 million, or 13.1% of regulatory capital, down from $94.2 million, or 17.1% of regulatory capital as of March 31, 2022.

    During the quarter ended June 30, 2022, non-performing assets decreased $500 thousand due to decreases in non-accrual loans of $1.8 million partially offset by increases in closed bank branches classified as other real estate owned of $881 thousand and other repossessed assets of $83 thousand.

    Regulatory Capital

    The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 12.1%, the total capital to risk-weighted assets was 16.0% and the total leverage ratio was 9.1% at June 30, 2022.   At March 31, 2022, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 11.8%, the total capital to risk-weighted assets ratio was 15.7% and the total leverage ratio was 9.1%.

    The Company’s subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 13.9%, a ratio of total capital to risk-weighted assets of 15.1% and a total leverage ratio of 9.9% at June 30, 2022.   At March 31, 2022, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.7%, the ratio of total capital to risk-weighted assets was 14.9% and the total leverage ratio was 10.0%.

    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 second quarter results on Wednesday, July 20, 2022 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 July 27, 2022, 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,” “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, 2022, 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
    June 30,    		  Six months ended
    June 30,    		 
     2022  2021  2022  2021 
    Interest and dividend income               
    Loans, including fees$36,849  $33,810  $73,155  $64,811 
    Securities, taxable 5,584   3,523   10,975   7,322 
    Securities, nontaxable 678   717   1,333   1,441 
    Federal funds sold and other 513   268   813   556 
    Total interest and dividend income 43,624   38,318   86,276   74,130 
    Interest expense               
    Deposits 2,183   2,025   3,905   4,435 
    Federal funds purchased and retail repurchase agreements 46   26   79   48 
    Federal Home Loan Bank advances 176   80   185   145 
    Subordinated debt 1,653   1,557   3,252   3,113 
    Total interest expense 4,058   3,688   7,421   7,741 
                    
    Net interest income 39,566   34,630   78,855   66,389 
    Provision (reversal) for credit losses 824   (1,657)  412   (7,413)
    Net interest income after provision (reversal) for credit losses 38,742   36,287   78,443   73,802 
    Non-interest income               
    Service charges and fees 2,617   2,169   5,139   3,765 
    Debit card income 2,810   2,679   5,438   5,029 
    Mortgage banking 428   848   990   1,783 
    Increase in value of bank-owned life insurance 736   676   1,601   1,277 
    Net gain on acquisition and branch sales 540   663   540   585 
    Net gains (losses) from securities transactions (32)  —   8   17 
    Other 2,538   2,065   4,943   3,356 
    Total non-interest income 9,637   9,100   18,659   15,812 
    Non-interest expense               
    Salaries and employee benefits 15,383   12,769   30,451   25,491 
    Net occupancy and equipment 3,007   2,327   6,177   4,695 
    Data processing 3,642   3,474   7,411   6,137 
    Professional fees 1,111   999   2,282   2,072 
    Advertising and business development 972   799   1,948   1,481 
    Telecommunications 442   512   912   1,092 
    FDIC insurance 260   425   440   840 
    Courier and postage 489   327   912   696 
    Free nationwide ATM cost 541   513   1,042   985 
    Amortization of core deposit intangibles 1,111   1,030   2,161   2,064 
    Loan expense 207   181   392   419 
    Other real estate owned 14   (468)  13   (463)
    Merger expenses 88   460   411   612 
    Other 4,169   2,458   6,343   4,566 
    Total non-interest expense 31,436   25,806   60,895   50,687 
    Income (loss) before income tax 16,943   19,581   36,207   38,927 
    Provision for income taxes 1,684   4,415   5,298   8,686 
    Net income (loss) and net income (loss) allocable to common stockholders$15,259  $15,166  $30,909  $30,241 
    Basic earnings (loss) per share$0.95  $1.06  $1.88  $2.10 
    Diluted earnings (loss) per share$0.94  $1.03  $1.86  $2.06 
    Weighted average common shares 16,106,683   14,356,958   16,428,535   14,410,328 
    Weighted average diluted common shares 16,312,953   14,674,838   16,639,970   14,704,240 
                    

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

     As of and for the three months ended 
     June 30,
    2022    		  March 31,
    2022    		  December 31,
    2021    		  September 30,
    2021    		  June 30,
    2021    		 
    Interest and dividend income                   
    Loans, including fees$36,849  $36,306  $34,942  $37,581  $33,810 
    Securities, taxable 5,584   5,391   4,754   3,920   3,523 
    Securities, nontaxable 678   655   747   655   717 
    Federal funds sold and other 513   300   349   290   268 
    Total interest and dividend income 43,624   42,652   40,792   42,446   38,318 
    Interest expense                   
    Deposits 2,183   1,722   1,939   1,881   2,025 
    Federal funds purchased and retail repurchase agreements 46   33   32   24   26 
    Federal Home Loan Bank advances 176   9   14   10   80 
    Subordinated debt 1,653   1,599   1,592   1,556   1,557 
    Total interest expense 4,058   3,363   3,577   3,471   3,688 
                        
    Net interest income 39,566   39,289   37,215   38,975   34,630 
    Provision (reversal) for credit losses 824   (412)  (2,125)  1,058   (1,657)
    Net interest income after provision (reversal) for credit losses 38,742   39,701   39,340   37,917   36,287 
    Non-interest income                   
    Service charges and fees 2,617   2,522   2,471   2,360   2,169 
    Debit card income 2,810   2,628   2,633   2,574   2,679 
    Mortgage banking 428   562   722   801   848 
    Increase in value of bank-owned life insurance 736   865   1,060   1,169   676 
    Net gain on acquisition and branch sales 540   —   —   —   663 
    Net gains (losses) from securities transactions (32)  40   8   381   — 
    Other 2,538   2,405   2,305   546   2,065 
    Total non-interest income 9,637   9,022   9,199   7,831   9,100 
    Non-interest expense                   
    Salaries and employee benefits 15,383   15,068   15,119   13,588   12,769 
    Net occupancy and equipment 3,007   3,170   2,967   2,475   2,327 
    Data processing 3,642   3,769   3,867   3,257   3,474 
    Professional fees 1,111   1,171   1,565   1,076   999 
    Advertising and business development 972   976   1,129   760   799 
    Telecommunications 442   470   435   439   512 
    FDIC insurance 260   180   360   465   425 
    Courier and postage 489   423   389   344   327 
    Free nationwide ATM cost 541   501   515   519   513 
    Amortization of core deposit intangibles 1,111   1,050   1,080   1,030   1,030 
    Loan expense 207   185   308   207   181 
    Other real estate owned 14   (1)  617   (342)  (468)
    Loss on debt extinguishment —   —   —   372   — 
    Merger expenses 88   323   4,562   4,015   460 
    Other 4,169   2,174   5,176   2,484   2,458 
    Total non-interest expense 31,436   29,459   38,089   30,689   25,806 
    Income (loss) before income tax 16,943   19,264   10,450   15,059   19,581 
    Provision for income taxes (benefit) 1,684   3,614   (16)  3,286   4,415 
    Net income (loss) and net income (loss) allocable to common stockholders$15,259  $15,650  $10,466  $11,773  $15,166 
    Basic earnings (loss) per share$0.95  $0.94  $0.62  $0.82  $1.06 
    Diluted earnings (loss) per share$0.94  $0.93  $0.61  $0.80  $1.03 
    Weighted average common shares 16,106,683   16,652,556   16,865,167   14,384,302   14,356,958 
    Weighted average diluted common shares 16,312,953   16,869,152   17,141,174   14,669,312   14,674,838 
                        

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

     June 30,
    2022    		  March 31,
    2022    		  December 31,
    2021    		  September 30,
    2021    		  June 30,
    2021    		 
    ASSETS                   
    Cash and due from banks$103,126  $89,764  $259,131  $141,645  $138,869 
    Federal funds sold 458   286   823   673   452 
    Cash and cash equivalents 103,584   90,050   259,954   142,318   139,321 
    Available-for-sale securities 1,288,180   1,352,894   1,327,442   1,157,423   1,041,613 
    Loans held for sale 1,714   1,575   4,214   4,108   6,183 
    Loans, net of allowance for credit losses(1) 3,175,208   3,194,987   3,107,262   2,633,148   2,763,227 
    Other real estate owned, net 12,969   9,897   9,523   10,267   10,861 
    Premises and equipment, net 101,212   103,168   104,038   90,727   90,876 
    Bank-owned life insurance 121,665   120,928   120,787   103,431   103,321 
    Federal Reserve Bank and Federal Home Loan Bank stock 21,479   19,890   17,510   14,540   18,454 
    Interest receivable 16,519   16,923   18,048   15,519   15,064 
    Goodwill 53,101   54,465   54,465   31,601   31,601 
    Core deposit intangibles, net 12,554   13,830   14,879   12,963   13,993 
    Other 93,971   100,016   99,509   47,223   33,702 
    Total assets$5,002,156  $5,078,623  $5,137,631  $4,263,268  $4,268,216 
    LIABILITIES AND STOCKHOLDERS’ EQUITY                   
    Deposits                   
    Demand$1,194,863  $1,255,793  $1,244,117  $984,436  $992,565 
    Total non-interest-bearing deposits 1,194,863   1,255,793   1,244,117   984,436   992,565 
    Demand, savings and money market 2,445,545   2,511,478   2,522,289   2,092,849   2,035,496 
    Time 651,363   612,399   653,598   585,492   659,494 
    Total interest-bearing deposits 3,096,908   3,123,877   3,175,887   2,678,341   2,694,990 
    Total deposits 4,291,771   4,379,670   4,420,004   3,662,777   3,687,555 
    Federal funds purchased and retail repurchase agreements 52,750   48,199   56,006   39,137   47,184 
    Federal Home Loan Bank advances 80,000   50,000   —   —   9,208 
    Subordinated debt 96,135   96,010   95,885   88,030   87,908 
    Contractual obligations 15,813   17,307   17,692   18,771   4,469 
    Interest payable and other liabilities 37,572   35,422   47,413   36,804   18,897 
    Total liabilities 4,574,041   4,626,608   4,637,000   3,845,519   3,855,221 
    Commitments and contingent liabilities                   
    Stockholders’ equity                   
    Common stock 204   204   203   178   176 
    Additional paid-in capital 480,897   480,106   478,862   392,321   389,394 
    Retained earnings 116,576   102,632   88,324   79,226   68,625 
    Accumulated other comprehensive income, net of tax (77,426)  (50,012)  1,776   9,475   13,450 
    Treasury stock (92,136)  (80,915)  (68,534)  (63,451)  (58,650)
    Total stockholders’ equity 428,115   452,015   500,631   417,749   412,995 
    Total liabilities and stockholders’ equity$5,002,156  $5,078,623  $5,137,631  $4,263,268  $4,268,216 
                        
    (1) Allowance for credit losses$48,238  $47,590  $48,365  $52,763  $51,834 
                        

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

     As of and for the three months ended 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2022  2022  2021  2021  2021 
    Loans Held For Investment by Type                   
    Commercial real estate$1,643,068  $1,552,134  $1,486,148  $1,308,707  $1,261,214 
    Commercial and industrial 578,899   629,181   567,497   569,513   732,126 
    Residential real estate 578,936   613,928   638,087   490,633   503,110 
    Agricultural real estate 197,938   198,844   198,330   138,793   129,020 
    Agricultural 124,753   150,077   166,975   93,767   97,912 
    Consumer 99,852   98,413   98,590   84,498   91,679 
    Total loans held-for-investment 3,223,446   3,242,577   3,155,627   2,685,911   2,815,061 
    Allowance for credit losses (48,238)  (47,590)  (48,365)  (52,763)  (51,834)
    Net loans held for investment$3,175,208  $3,194,987  $3,107,262  $2,633,148  $2,763,227 
                        
                        
    Asset Quality Ratios                   
    Allowance for credit losses on loans to total loans 1.50%  1.47%  1.53%  1.96%  1.84%
    Past due or nonaccrual loans to total loans 0.78%  0.82%  1.18%  2.78%  2.09%
    Nonperforming assets to total assets 0.74%  0.74%  1.28%  1.74%  1.56%
    Nonperforming assets to total loans plus other
    real estate owned    		 1.14%  1.15%  2.07%  2.76%  2.36%
    Classified assets to bank total regulatory capital 13.08%  17.12%  25.34%  24.25%  23.20%
                        
                        
    Selected Average Balance Sheet Data (QTD Average)                   
    Investment securities$1,319,099  $1,397,421  $1,330,267  $1,061,178  $986,986 
    Total gross loans receivable 3,216,853   3,195,787   3,181,279   2,748,202   2,853,145 
    Interest-earning assets 4,675,967   4,715,389   4,713,817   4,005,509   3,964,633 
    Total assets 5,067,686   5,108,120   5,068,278   4,275,298   4,231,439 
    Interest-bearing deposits 3,112,300   3,163,777   3,101,657   2,702,040   2,656,052 
    Borrowings 238,062   160,094   165,941   132,581   171,658 
    Total interest-bearing liabilities 3,350,362   3,323,871   3,267,598   2,834,621   2,827,710 
    Total deposits 4,340,196   4,393,879   4,342,732   3,686,169   3,624,950 
    Total liabilities 4,630,204   4,615,521   4,505,232   3,852,419   3,827,400 
    Total stockholders' equity 437,483   492,599   563,046   422,879   404,039 
    Tangible common equity* 368,505   422,418   501,860   376,544   356,705 
                        
                        
    Performance ratios                   
    Return on average assets (ROAA) annualized 1.21%  1.24%  0.82%  1.09%  1.44%
    Return on average assets before income tax and
    provision for loan losses*    		 1.41%  1.50%  0.65%  1.50%  1.70%
    Return on average equity (ROAE) annualized 13.99%  12.88%  7.37%  11.05%  15.06%
    Return on average equity before income tax and
    provision for loan losses*    		 16.29%  15.52%  5.87%  15.12%  17.79%
    Return on average tangible common equity
    (ROATCE) annualized*    		 17.60%  15.85%  8.97%  13.27%  17.98%
    Yield on loans annualized 4.59%  4.61%  4.36%  5.43%  4.75%
    Cost of interest-bearing deposits annualized 0.28%  0.22%  0.25%  0.28%  0.31%
    Cost of total deposits annualized 0.20%  0.16%  0.18%  0.20%  0.22%
    Net interest margin annualized 3.39%  3.38%  3.13%  3.86%  3.50%
    Efficiency ratio* 64.38%  60.36%  72.25%  56.65%  58.85%
    Non-interest income / average assets 0.76%  0.72%  0.72%  0.73%  0.86%
    Non-interest expense / average assets 2.49%  2.34%  2.98%  2.85%  2.45%
                        
                        
    Capital Ratios                   
    Tier 1 Leverage Ratio 9.11%  9.07%  9.09%  9.02%  8.88%
    Common Equity Tier 1 Capital Ratio 12.08%  11.81%  12.03%  12.39%  12.41%
    Tier 1 Risk Based Capital Ratio 12.71%  12.43%  12.67%  12.90%  12.93%
    Total Risk Based Capital Ratio 15.97%  15.66%  15.96%  16.63%  16.74%
    Total stockholders' equity to total assets 8.56%  8.90%  9.74%  9.80%  9.68%
    Tangible common equity to tangible assets* 7.32%  7.63%  8.48%  8.82%  8.68%
    Dividend payout ratio 8.61%  8.58%  13.05%  9.96%  0.00%
    Book value per common share$26.58  $27.47  $29.87  $29.08  $28.76 
    Tangible book value per common share*$22.42  $23.24  $25.65  $25.90  $25.51 
    Tangible book value per diluted common share*$22.17  $22.95  $25.22  $25.42  $24.98 
                        

    TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)
    (Dollars in thousands)

     For the six months ended  For the six months ended 
     June 30, 2022  June 30, 2021 
     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$581,880  $15,244   5.28% $814,895  $20,962   5.19%
    Commercial real estate 1,200,212   27,972   4.70%  981,482   22,873   4.70%
    Real estate construction 363,542   7,596   4.21%  254,807   4,531   3.59%
    Residential real estate 615,035   10,872   3.56%  430,123   9,093   4.26%
    Agricultural real estate 202,091   5,306   5.29%  136,366   3,384   5.00%
    Agricultural 142,210   3,849   5.46%  94,596   2,062   4.40%
    Consumer 101,409   2,316   4.60%  83,083   1,906   4.63%
    Total loans 3,206,379   73,155   4.60%  2,795,352   64,811   4.68%
    Securities                       
    Taxable securities 1,248,178   10,975   1.77%  863,801   7,322   1.71%
    Nontaxable securities 109,866   1,333   2.45%  103,529   1,441   2.81%
    Total securities 1,358,044   12,308   1.83%  967,330   8,763   1.83%
    Federal funds sold and other 131,148   813   1.25%  165,408   556   0.68%
    Total interest-earning assets$4,695,571   86,276   3.71% $3,928,090   74,130   3.81%
    Interest-bearing liabilities                       
    Demand savings and money market deposits$2,507,707   2,342   0.19% $2,073,658   1,865   0.18%
    Time deposits 630,189   1,563   0.50%  599,353   2,570   0.86%
    Total interest-bearing deposits 3,137,896   3,905   0.25%  2,673,011   4,435   0.33%
    FHLB advances 45,299   185   0.82%  23,911   145   1.22%
    Other borrowings 153,995   3,331   4.36%  131,687   3,161   4.84%
    Total interest-bearing liabilities$3,337,190   7,421   0.45% $2,828,609   7,741   0.55%
                            
    Net interest income    $78,855          $66,389     
    Interest rate spread         3.26%          3.26%
                            
    Net interest margin (2)         3.39%          3.41%
                            
    (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 
     June 30, 2022  June 30, 2021 
     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$588,126  $7,483   5.10% $826,647  $11,729   5.69%
    Commercial real estate 1,210,185   14,521   4.81%  991,033   11,433   4.63%
    Real estate construction 384,317   4,297   4.48%  253,947   2,352   3.71%
    Residential real estate 597,680   5,206   3.49%  465,525   4,642   4.00%
    Agricultural real estate 202,038   2,643   5.25%  131,906   1,687   5.13%
    Agricultural 134,826   1,533   4.56%  94,407   1,024   4.35%
    Consumer 99,680   1,166   4.69%  89,680   943   4.22%
    Total loans 3,216,852   36,849   4.59%  2,853,145   33,810   4.75%
    Securities                       
    Taxable securities 1,210,828   5,584   1.85%  887,983   3,523   1.59%
    Nontaxable securities 108,271   678   2.51%  99,003   717   2.90%
    Total securities 1,319,099   6,262   1.90%  986,986   4,240   1.72%
    Federal funds sold and other 140,016   513   1.47%  124,502   268   0.86%
    Total interest-earning assets$4,675,967   43,624   3.74% $3,964,633   38,318   3.88%
    Interest-bearing liabilities                       
    Demand savings and money market deposits$2,481,602   1,346   0.22% $2,068,319   895   0.17%
    Time deposits 630,698   837   0.53%  587,733   1,130   0.77%
    Total interest-bearing deposits 3,112,300   2,183   0.28%  2,656,052   2,025   0.31%
    FHLB advances 80,266   176   0.88%  37,656   80   0.86%
    Other borrowings 157,796   1,699   4.32%  134,002   1,583   4.74%
    Total interest-bearing liabilities$3,350,362   4,058   0.49% $2,827,710   3,688   0.52%
                            
    Net interest income    $39,566          $34,630     
    Interest rate spread         3.25%          3.36%
                            
    Net interest margin (2)         3.39%          3.50%
                            
    (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 7. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)
    (Dollars in thousands)

     For the three months ended  For the three months ended 
     June 30, 2022  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$588,126  $7,483   5.10% $575,563  $7,761   5.47%
    Commercial real estate 1,210,185   14,521   4.81%  1,190,128   13,451   4.58%
    Real estate construction 384,317   4,297   4.48%  342,536   3,299   3.91%
    Residential real estate 597,680   5,206   3.49%  632,581   5,665   3.63%
    Agricultural real estate 202,038   2,643   5.25%  202,145   2,663   5.34%
    Agricultural 134,826   1,533   4.56%  149,676   2,316   6.28%
    Consumer 99,680   1,166   4.69%  103,158   1,151   4.53%
    Total loans 3,216,852   36,849   4.59%  3,195,787   36,306   4.61%
    Securities                       
    Taxable securities 1,210,828   5,584   1.85%  1,285,942   5,391   1.70%
    Nontaxable securities 108,271   678   2.51%  111,479   655   2.38%
    Total securities 1,319,099   6,262   1.90%  1,397,421   6,046   1.75%
    Federal funds sold and other 140,016   513   1.47%  122,181   300   1.00%
    Total interest-earning assets$4,675,967   43,624   3.74% $4,715,389   42,652   3.67%
    Interest-bearing liabilities                       
    Demand savings and money market deposits$2,481,602   1,346   0.22% $2,534,102   996   0.16%
    Time deposits 630,698   837   0.53%  629,675   726   0.47%
    Total interest-bearing deposits 3,112,300   2,183   0.28%  3,163,777   1,722   0.22%
    FHLB advances 80,266   176   0.88%  9,943   9   0.38%
    Other borrowings 157,796   1,699   4.32%  150,151   1,632   4.41%
    Total interest-bearing liabilities$3,350,362   4,058   0.49% $3,323,871   3,363   0.41%
                            
    Net interest income    $39,566          $39,289     
    Interest rate spread         3.25%          3.26%
                            
    Net interest margin (2)         3.39%          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 8. NON-GAAP FINANCIAL MEASURES (Unaudited)
    (Dollars in thousands, except per share data)

     As of and for the three months ended 
     June 30,  March 31,  December 31,  September 30,  June 30, 
     2022  2022  2021  2021  2021 
                        
    Total stockholders' equity$428,115  $452,015  $500,631  $417,749  $412,995 
    Less: goodwill 53,101   54,465   54,465   31,601   31,601 
    Less: core deposit intangibles, net 12,554   13,830   14,879   12,963   13,993 
    Less: mortgage servicing asset, net 226   251   276   —   — 
    Less: naming rights, net 1,065   1,076   1,087   1,098   1,109 
    Tangible common equity$361,169  $382,393  $429,924  $372,087  $366,292 
    Common shares issued at period end 16,106,818   16,454,966   16,760,115   14,365,785   14,360,172 
    Diluted common shares outstanding at period end 16,289,635   16,662,779   17,050,115   14,637,306   14,664,603 
    Book value per common share$26.58  $27.47  $29.87  $29.08  $28.76 
    Tangible book value per common share$22.42  $23.24  $25.65  $25.90  $25.51 
    Tangible book value per diluted common share$22.17  $22.95  $25.22  $25.42  $24.98 
                        
    Total assets$5,002,156  $5,078,623  $5,137,631  $4,263,268  $4,268,216 
    Less: goodwill 53,101   54,465   54,465   31,601   31,601 
    Less: core deposit intangibles, net 12,554   13,830   14,879   12,963   13,993 
    Less: mortgage servicing asset, net 226   251   276   —   — 
    Less: naming rights, net 1,065   1,076   1,087   1,098   1,109 
    Tangible assets$4,935,210  $5,009,001  $5,066,924  $4,217,606  $4,221,513 
    Total stockholders' equity to total assets 8.56%  8.90%  9.74%  9.80%  9.68%
    Tangible common equity to tangible assets 7.32%  7.63%  8.48%  8.82%  8.68%
                        
    Total average stockholders' equity$437,483  $492,599  $563,046  $422,879  $404,039 
    Less: average intangible assets 68,978   70,181   61,186   46,335   47,334 
    Average tangible common equity$368,505  $422,418  $501,860  $376,544  $356,705 
    Net income (loss) allocable to common stockholders$15,259  $15,650  $10,466  $11,773  $15,166 
    Amortization of intangible assets 1,148   1,085   1,116   1,040   1,041 
    Less: tax effect of intangible assets amortization 241   228   234   218   219 
    Adjusted net income (loss) allocable to common
    stockholders    		$16,166  $16,507  $11,348  $12,595  $15,988 
    Return on total average stockholders' equity
    (ROAE) annualized    		 13.99%  12.88%  7.37%  11.05%  15.06%
    Return on average tangible common equity
    (ROATCE) annualized    		 17.60%  15.85%  8.97%  13.27%  17.98%
                        
    Non-interest expense$31,436  $29,459  $38,089  $30,689  $25,806 
    Loss on debt extinguishment —   —   —  $372   — 
    Less: merger expense 88   323   4,562   4,015   460 
    Non-interest expense$31,348  $29,136  $33,527  $26,302  $25,346 
    Net interest income$39,566  $39,289  $37,215  $38,975  $34,630 
    Non-interest income 9,637   9,022   9,199   7,831   9,100 
    Less: net gain on acquisition and branch sales 540   —   —   —   663 
    Less: net gains (losses) from securities transactions (32)  40   8   381   — 
    Adjusted non-interest income, adjusted$9,129  $8,982  $9,191  $7,450  $8,437 
    Net interest income plus adjusted non-interest income$48,695  $48,271  $46,406  $46,425  $43,067 
    Non-interest expense to
    net interest income plus non-interest income    		 63.89%  60.98%  82.06%  65.57%  59.01%
    Efficiency ratio 64.38%  60.36%  72.25%  56.65%  58.85%
    Net income (loss) allocable to common stockholders$15,259  $15,650  $10,466  $11,773  $15,166 
    Add: income tax provision 1,684   3,614   (16)  3,286   4,415 
    Add: provision (reversal) of credit losses 824   (412)  (2,125)  1,058   (1,657)
    Adjusted net income$17,767  $18,852  $8,325  $16,117  $17,924 
    Total average assets$5,067,687  $5,108,120  $5,068,301  $4,275,298  $4,231,439 
    Total average stockholders' equity$437,483  $492,599  $563,023  $422,879  $404,039 
    Return on average assets (ROAA) annualized 1.21%  1.24%  0.82%  1.09%  1.44%
    Adjusted return on average assets 1.41%  1.50%  0.65%  1.50%  1.70%
    Adjusted return on average equity 16.29%  15.52%  5.87%  15.12%  17.79%

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