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

    المصدر: Nasdaq GlobeNewswire / 18 أكتوبر 2022 16:25:19   America/Chicago

    WICHITA, Kan., Oct. 18, 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 $15.2 million and $0.93 earnings per diluted share for the quarter ended September 30, 2022.

    "In 2022, our Company has realized meaningful, organic growth while emphasizing return to our stockholders via earnings, share buybacks, and an increasing dividend. Annualized growth within our commercial and commercial real estate loan portfolios of 17.13% is a credit to our sales and operational teams,” said Brad S. Elliott, Chairman and CEO, Equity Bancshares, Inc. “We have been diligent in enhancing our sales process, expanding our marketing geography, and hiring exceptional operators which has and will continue to drive our Company’s success.”

    “At the end of the quarter, our classified asset ratio is down more than 50% year-to-date and at an all-time low for our Company,” continued Mr. Elliott. “The committed efforts of our sales and credit teams to source and underwrite strong credits while meeting the financing needs of the communities we serve allows our Company to hold true to its mission as a community bank.”

    Notable Items:

    • During the third quarter, the Company realized continued loan growth excluding the impact of PPP assets and sold branches bringing annualized loan growth year-to-date to 7.01%.
    • During the quarter, the Company realized linked period Net Interest Margin growth of 23 basis points, and Net Interest Income growth of $2.38 million.
    • The Company continued to emphasize investor returns through repurchase of 126,900 shares during the quarter, at an average price of $32.51, as well as the expansion of our quarterly dividend program to $0.10 per share. Also during the quarter, the Company’s Board authorized the repurchase of up to 1 million shares and the Company received non-objection from the Federal Reserve Bank of Kansas City related to the repurchase plan.

    Financial Results for the Quarter Ended September 30, 2022

    Net income allocable to common stockholders was $15.2 million, or $0.93 per diluted share, for the three months ended September 30, 2022, as compared to $15.3 million, or $0.94 per diluted share, for the three months ended June 30, 2022. The decrease for the second quarter of 2022 is primarily driven by income taxes as a true-up of rate was experienced in the second quarter that, as expected, did not repeat. Pre-tax income increased $1.9 million as the Company's net interest income benefitted from increasing interest rates.

    Net Interest Income

    Net interest income was $41.9 million for the three months ended September 30, 2022, as compared to $39.6 million for the three months ended June 30, 2022, an increase of $2.4 million, or 6.1%. The yield on interest-earning assets increased 44 basis points to 4.18% during the quarter ended September 30, 2022, as compared to 3.74% for the quarter ended June 30, 2022. The cost of interest-bearing deposits increased by 29 basis points during the quarter, moving from 0.28% at June 30, 2022 to 0.57% at September 30, 2022.

    Provision for Credit Losses

    During the three months ended September 30, 2022, there was a net release of $136 thousand compared to a provision to the allowance for credit losses of $824 thousand in the previous quarter. The minimal release of provision for the quarter is the result of having a relatively similar sized loan portfolio and similar realized loss rates; however, the Company continues to estimate the allowance for credit loss with assumptions that anticipate slowing 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 September 30, 2022, we had net charge-offs of $1.6 million as compared to $176 thousand for the three months ended June 30, 2022.

    Non-Interest Income

    Total non-interest income was $9.0 million for the three months ended September 30, 2022, as compared to $9.6 million for the three months ended June 30, 2022, or a decrease of 6.9%, quarter over quarter. The $600 thousand decrease was primarily due to a decrease in net gain on acquisition and branch sales of $540 thousand.

    Non-Interest Expense

    Total non-interest expense for the quarter ended September 30, 2022, was $32.2 million as compared to $31.4 million for the quarter ended June 30, 2022. The $800 thousand change was primarily due to an increase in data processing of $496 thousand and an increase in the write-off of tax investments of $423 thousand for the quarter ended September 30, 2022, compared to the quarter ended June 30, 2022.

    Asset Quality

    As of September 30, 2022, Equity’s allowance for credit losses to total loans decreased to 1.4% as compared to 1.5% at June 30, 2022. Nonperforming assets were $29.7 million as of September, 2022, or 0.6% of total assets, compared to $37.0 million at June 30, 2022, or 0.7% of total assets. Non-accrual loans were $23.1 million at September 30, 2022, as compared to $18.9 million at June 30, 2022. Total classified assets, including loans rated special mention or worse, other real estate owned and other repossessed assets were $63.1 million, or 11.0% of regulatory capital, down from $72.1 million, or 13.1% of regulatory capital as of June 30, 2022.

    During the quarter ended September 30, 2022, non-performing assets decreased $7.3 million due to decreases in other repossessed assets of $8.7 million and other real estate owned of $2.5 million, partially offset by increases in non-accrual loans of $4.3 million.

    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 9.7% at September 30, 2022. At June 30, 2022, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 12.1%, the total capital to risk-weighted assets ratio was 16.0% 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 14.1%, a ratio of total capital to risk-weighted assets of 15.4% and a total leverage ratio of 10.5% at September 30, 2022. At June 30, 2022, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.9%, the ratio of total capital to risk-weighted assets was 15.1% and the total leverage ratio was 9.9%.

    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 third quarter results on Wednesday, October 19, 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 October 26, 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, except as required by law. New risks and uncertainties arise from time to time, such as COVID-19, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.

    Investor Contact:

    Chris Navratil
    SVP, Finance
    Equity Bancshares, Inc.
    (316) 612-6014
    cnavratil@equitybank.com

    Media Contact:

    John J. Hanley
    SVP, Senior Director of Marketing
    Equity Bancshares, Inc.
    (913) 583-8004
    jhanley@equitybank.com

    Unaudited Financial Tables

    • Table 1. Consolidated Statements of Income
    • Table 2. Quarterly Consolidated Statements of Income
    • Table 3. Consolidated Balance Sheets
    • Table 4. Selected Financial Highlights
    • Table 5. Year-To-Date Net Interest Income Analysis
    • Table 6. Quarter-To-Date Net Interest Income Analysis
    • Table 7. Quarter-Over-Quarter Net Interest Income Analysis
    • Table 8. Non-GAAP Financial Measures


    TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
    (Dollars in thousands, except per share data)

      Three months ended
    September 30,    		  Nine months ended
    September 30,    		 
      2022  2021  2022  2021 
    Interest and dividend income            
    Loans, including fees $41,555  $37,581  $114,710  $102,392 
    Securities, taxable  5,792   3,920   16,767   11,242 
    Securities, nontaxable  687   655   2,020   2,096 
    Federal funds sold and other  514   290   1,327   846 
    Total interest and dividend income  48,548   42,446   134,824   116,576 
    Interest expense            
    Deposits  4,403   1,881   8,308   6,316 
    Federal funds purchased and retail repurchase agreements  71   24   150   72 
    Federal Home Loan Bank advances  409   10   594   155 
    Subordinated debt  1,721   1,556   4,973   4,669 
    Total interest expense  6,604   3,471   14,025   11,212 
                 
    Net interest income  41,944   38,975   120,799   105,364 
    Provision (reversal) for credit losses  (136)  1,058   276   (6,355)
    Net interest income after provision (reversal) for credit losses  42,080   37,917   120,523   111,719 
    Non-interest income            
    Service charges and fees  2,788   2,360   7,927   6,125 
    Debit card income  2,682   2,574   8,120   7,603 
    Mortgage banking  310   801   1,300   2,584 
    Increase in value of bank-owned life insurance  754   1,169   2,355   2,446 
    Net gain on acquisition and branch sales  —   —   540   585 
    Net gains (losses) from securities transactions  (17)  381   (9)  398 
    Other  2,452   546   7,395   3,902 
    Total non-interest income  8,969   7,831   27,628   23,643 
    Non-interest expense            
    Salaries and employee benefits  15,442   13,588   45,893   39,079 
    Net occupancy and equipment  3,127   2,475   9,304   7,170 
    Data processing  4,138   3,257   11,549   9,394 
    Professional fees  1,265   1,076   3,547   3,148 
    Advertising and business development  1,191   760   3,139   2,241 
    Telecommunications  487   439   1,399   1,531 
    FDIC insurance  340   465   780   1,305 
    Courier and postage  436   344   1,348   1,040 
    Free nationwide ATM cost  551   519   1,593   1,504 
    Amortization of core deposit intangibles  957   1,030   3,118   3,094 
    Loan expense  174   207   566   626 
    Other real estate owned  188   (342)  201   (805)
    Loss on debt extinguishment  —   372   —   372 
    Merger expenses  115   4,015   526   4,627 
    Other  3,825   2,484   10,168   7,050 
    Total non-interest expense  32,236   30,689   93,131   81,376 
    Income (loss) before income tax  18,813   15,059   55,020   53,986 
    Provision for income taxes  3,642   3,286   8,940   11,972 
    Net income (loss) and net income (loss) allocable to common stockholders $15,171  $11,773  $46,080  $42,014 
    Basic earnings (loss) per share $0.94  $0.82  $2.83  $2.92 
    Diluted earnings (loss) per share $0.93  $0.80  $2.79  $2.86 
    Weighted average common shares  16,056,658   14,384,302   16,303,586   14,397,146 
    Weighted average diluted common shares  16,273,231   14,669,312   16,516,787   14,688,092 


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

      As of and for the three months ended 
      September 30,
    2022    		  June 30,
    2022    		  March 31,
    2022    		  December 31,
    2021    		  September 30,
    2021    		 
    Interest and dividend income               
    Loans, including fees $41,555  $36,849  $36,306  $34,942  $37,581 
    Securities, taxable  5,792   5,584   5,391   4,754   3,920 
    Securities, nontaxable  687   678   655   747   655 
    Federal funds sold and other  514   513   300   349   290 
    Total interest and dividend income  48,548   43,624   42,652   40,792   42,446 
    Interest expense               
    Deposits  4,403   2,183   1,722   1,939   1,881 
    Federal funds purchased and retail repurchase agreements  71   46   33   32   24 
    Federal Home Loan Bank advances  409   176   9   14   10 
    Subordinated debt  1,721   1,653   1,599   1,592   1,556 
    Total interest expense  6,604   4,058   3,363   3,577   3,471 
                    
    Net interest income  41,944   39,566   39,289   37,215   38,975 
    Provision (reversal) for credit losses  (136)  824   (412)  (2,125)  1,058 
    Net interest income after provision (reversal) for credit losses  42,080   38,742   39,701   39,340   37,917 
    Non-interest income               
    Service charges and fees  2,788   2,617   2,522   2,471   2,360 
    Debit card income  2,682   2,810   2,628   2,633   2,574 
    Mortgage banking  310   428   562   722   801 
    Increase in value of bank-owned life insurance  754   736   865   1,060   1,169 
    Net gain on acquisition and branch sales  —   540   —   —   — 
    Net gains (losses) from securities transactions  (17)  (32)  40   8   381 
    Other  2,452   2,538   2,405   2,305   546 
    Total non-interest income  8,969   9,637   9,022   9,199   7,831 
    Non-interest expense               
    Salaries and employee benefits  15,442   15,383   15,068   15,119   13,588 
    Net occupancy and equipment  3,127   3,007   3,170   2,967   2,475 
    Data processing  4,138   3,642   3,769   3,867   3,257 
    Professional fees  1,265   1,111   1,171   1,565   1,076 
    Advertising and business development  1,191   972   976   1,129   760 
    Telecommunications  487   442   470   435   439 
    FDIC insurance  340   260   180   360   465 
    Courier and postage  436   489   423   389   344 
    Free nationwide ATM cost  551   541   501   515   519 
    Amortization of core deposit intangibles  957   1,111   1,050   1,080   1,030 
    Loan expense  174   207   185   308   207 
    Other real estate owned  188   14   (1)  617   (342)
    Loss on debt extinguishment  —   —   —   —   372 
    Merger expenses  115   88   323   4,562   4,015 
    Other  3,825   4,169   2,174   5,176   2,484 
    Total non-interest expense  32,236   31,436   29,459   38,089   30,689 
    Income (loss) before income tax  18,813   16,943   19,264   10,450   15,059 
    Provision for income taxes (benefit)  3,642   1,684   3,614   (16)  3,286 
    Net income (loss) and net income (loss) allocable to common stockholders $15,171  $15,259  $15,650  $10,466  $11,773 
    Basic earnings (loss) per share $0.94  $0.95  $0.94  $0.62  $0.82 
    Diluted earnings (loss) per share $0.93  $0.94  $0.93  $0.61  $0.80 
    Weighted average common shares  16,056,658   16,206,978   16,652,556   16,865,167   14,384,302 
    Weighted average diluted common shares  16,273,231   16,413,248   16,869,152   17,141,174   14,669,312 


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

      September 30,
    2022    		  June 30,
    2022    		  March 31,
    2022    		  December 31,
    2021    		  September 30,
    2021    		 
    ASSETS               
    Cash and due from banks $155,039  $103,126  $89,764  $259,131  $141,645 
    Federal funds sold  374   458   286   823   673 
    Cash and cash equivalents  155,413   103,584   90,050   259,954   142,318 
    Available-for-sale securities  1,198,962   1,288,180   1,352,894   1,327,442   1,157,423 
    Loans held for sale  1,518   1,714   1,575   4,214   4,108 
    Loans, net of allowance for credit losses(1)  3,208,524   3,175,208   3,194,987   3,107,262   2,633,148 
    Other real estate owned, net  10,412   12,969   9,897   9,523   10,267 
    Premises and equipment, net  100,566   101,212   103,168   104,038   90,727 
    Bank-owned life insurance  122,418   121,665   120,928   120,787   103,431 
    Federal Reserve Bank and Federal Home Loan Bank stock  24,428   21,479   19,890   17,510   14,540 
    Interest receivable  18,497   16,519   16,923   18,048   15,519 
    Goodwill  53,101   53,101   54,465   54,465   31,601 
    Core deposit intangibles, net  11,598   12,554   13,830   14,879   12,963 
    Other  94,978   93,971   100,016   99,509   47,223 
    Total assets $5,000,415  $5,002,156  $5,078,623  $5,137,631  $4,263,268 
    LIABILITIES AND STOCKHOLDERS’ EQUITY               
    Deposits               
    Demand $1,217,094  $1,194,863  $1,255,793  $1,244,117  $984,436 
    Total non-interest-bearing deposits  1,217,094   1,194,863   1,255,793   1,244,117   984,436 
    Demand, savings and money market  2,335,847   2,445,545   2,511,478   2,522,289   2,092,849 
    Time  673,670   651,363   612,399   653,598   585,492 
    Total interest-bearing deposits  3,009,517   3,096,908   3,123,877   3,175,887   2,678,341 
    Total deposits  4,226,611   4,291,771   4,379,670   4,420,004   3,662,777 
    Federal funds purchased and retail repurchase agreements  47,443   52,750   48,199   56,006   39,137 
    Federal Home Loan Bank advances  186,001   80,000   50,000   —   — 
    Subordinated debt  96,263   96,135   96,010   95,885   88,030 
    Contractual obligations  15,562   15,813   17,307   17,692   18,771 
    Interest payable and other liabilities  32,729   37,572   35,422   47,413   36,804 
    Total liabilities  4,604,609   4,574,041   4,626,608   4,637,000   3,845,519 
    Commitments and contingent liabilities               
    Stockholders’ equity               
    Common stock  204   204   204   203   178 
    Additional paid-in capital  482,668   480,897   480,106   478,862   392,321 
    Retained earnings  130,114   116,576   102,632   88,324   79,226 
    Accumulated other comprehensive income (loss), net of tax  (120,918)  (77,426)  (50,012)  1,776   9,475 
    Treasury stock  (96,262)  (92,136)  (80,915)  (68,534)  (63,451)
    Total stockholders’ equity  395,806   428,115   452,015   500,631   417,749 
    Total liabilities and stockholders’ equity $5,000,415  $5,002,156  $5,078,623  $5,137,631  $4,263,268 
                    
    (1) Allowance for credit losses $46,499  $48,238  $47,590  $48,365  $52,763 


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

      As of and for the three months ended 
      September 30,  June 30,  March 31,  December 31,  September 30, 
      2022  2022  2022  2021  2021 
    Loans Held For Investment by Type               
    Commercial real estate $1,655,646  $1,643,068  $1,552,134  $1,486,148  $1,308,707 
    Commercial and industrial  607,722   578,899   629,181   567,497   569,513 
    Residential real estate  573,431   578,936   613,928   638,087   490,633 
    Agricultural real estate  200,415   197,938   198,844   198,330   138,793 
    Agricultural  115,048   124,753   150,077   166,975   93,767 
    Consumer  102,761   99,852   98,413   98,590   84,498 
    Total loans held-for-investment  3,255,023   3,223,446   3,242,577   3,155,627   2,685,911 
    Allowance for credit losses  (46,499)  (48,238)  (47,590)  (48,365)  (52,763)
    Net loans held for investment $3,208,524  $3,175,208  $3,194,987  $3,107,262  $2,633,148 
                    
                    
    Asset Quality Ratios               
    Allowance for credit losses on loans to total loans  1.43%  1.50%  1.47%  1.53%  1.96%
    Past due or nonaccrual loans to total loans  0.94%  0.78%  0.82%  1.18%  2.78%
    Nonperforming assets to total assets  0.59%  0.74%  0.74%  1.28%  1.74%
    Nonperforming assets to total loans plus other
    real estate owned    		  0.91%  1.14%  1.15%  2.07%  2.76%
    Classified assets to bank total regulatory capital  11.03%  13.08%  17.12%  25.34%  24.25%
                    
                    
    Selected Average Balance Sheet Data (QTD Average)               
    Investment securities $1,272,414  $1,319,099  $1,397,421  $1,330,267  $1,061,178 
    Total gross loans receivable  3,240,998   3,216,853   3,195,787   3,181,279   2,748,202 
    Interest-earning assets  4,602,568   4,675,967   4,715,389   4,713,817   4,005,509 
    Total assets  4,988,755   5,067,686   5,108,120   5,068,278   4,275,298 
    Interest-bearing deposits  3,081,245   3,112,300   3,163,777   3,101,657   2,702,040 
    Borrowings  221,514   238,062   160,094   165,941   132,581 
    Total interest-bearing liabilities  3,302,759   3,350,362   3,323,871   3,267,598   2,834,621 
    Total deposits  4,283,855   4,340,196   4,393,879   4,342,732   3,686,169 
    Total liabilities  4,552,564   4,630,204   4,615,521   4,505,232   3,852,419 
    Total stockholders' equity  436,191   437,483   492,599   563,046   422,879 
    Tangible common equity*  369,746   368,505   422,418   501,860   376,544 
                    
                    
    Performance ratios               
    Return on average assets (ROAA) annualized  1.21%  1.21%  1.24%  0.82%  1.09%
    Return on average assets before income tax and
      provision for loan losses*    		  1.49%  1.41%  1.50%  0.65%  1.50%
    Return on average equity (ROAE) annualized  13.80%  13.99%  12.88%  7.37%  11.05%
    Return on average equity before income tax and
      provision for loan losses*    		  16.99%  16.29%  15.52%  5.87%  15.12%
    Return on average tangible common equity
      (ROATCE) annualized*    		  17.12%  17.60%  15.85%  8.97%  13.27%
    Yield on loans annualized  5.09%  4.59%  4.61%  4.36%  5.43%
    Cost of interest-bearing deposits annualized  0.57%  0.28%  0.22%  0.25%  0.28%
    Cost of total deposits annualized  0.41%  0.20%  0.16%  0.18%  0.20%
    Net interest margin annualized  3.62%  3.39%  3.38%  3.13%  3.86%
    Efficiency ratio*  63.07%  64.38%  60.36%  72.25%  56.65%
    Non-interest income / average assets  0.71%  0.76%  0.72%  0.72%  0.73%
    Non-interest expense / average assets  2.56%  2.49%  2.34%  2.98%  2.85%
                    
                    
    Capital Ratios               
    Tier 1 Leverage Ratio  9.46%  9.11%  9.07%  9.09%  9.02%
    Common Equity Tier 1 Capital Ratio  12.15%  12.08%  11.81%  12.03%  12.39%
    Tier 1 Risk Based Capital Ratio  12.77%  12.71%  12.43%  12.67%  12.90%
    Total Risk Based Capital Ratio  15.99%  15.97%  15.66%  15.96%  16.63%
    Total stockholders' equity to total assets  7.92%  8.56%  8.90%  9.74%  9.80%
    Tangible common equity to tangible assets*  6.68%  7.32%  7.63%  8.48%  8.82%
    Dividend payout ratio  10.78%  8.61%  8.58%  13.05%  9.96%
    Book value per common share $24.71  $26.58  $27.47  $29.87  $29.08 
    Tangible book value per common share* $20.59  $22.42  $23.24  $25.65  $25.90 
    Tangible book value per diluted common share* $20.33  $22.17  $22.95  $25.22  $25.42 


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

     For the nine months ended  For the nine months ended 
     September 30, 2022  September 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$579,610  $22,994   5.30% $752,795  $34,609   6.15%
    Commercial real estate 1,236,282   45,995   4.97%  990,803   34,943   4.72%
    Real estate construction 362,543   12,443   4.59%  264,344   7,195   3.64%
    Residential real estate 604,218   16,336   3.61%  457,761   14,167   4.14%
    Agricultural real estate 201,566   8,046   5.34%  135,795   5,203   5.12%
    Agricultural 132,485   5,254   5.30%  93,680   3,432   4.90%
    Consumer 101,341   3,642   4.80%  84,285   2,843   4.51%
    Total loans 3,218,045   114,710   4.77%  2,779,463   102,392   4.93%
    Securities                 
    Taxable securities 1,220,045   16,767   1.84%  898,461   11,242   1.67%
    Nontaxable securities 109,142   2,020   2.47%  100,495   2,096   2.79%
    Total securities 1,329,187   18,787   1.89%  998,956   13,338   1.79%
    Federal funds sold and other 116,997   1,327   1.52%  175,761   846   0.64%
    Total interest-earning assets$4,664,229   134,824   3.86% $3,954,180   116,576   3.94%
    Interest-bearing liabilities                 
    Demand savings and money market deposits$2,480,113   5,461   0.29% $2,076,643   2,728   0.18%
    Time deposits 638,692   2,847   0.60%  606,151   3,588   0.79%
    Total interest-bearing deposits 3,118,805   8,308   0.36%  2,682,794   6,316   0.31%
    FHLB advances 54,100   594   1.47%  16,325   155   1.27%
    Other borrowings 152,682   5,123   4.49%  131,516   4,741   4.82%
    Total interest-bearing liabilities$3,325,587   14,025   0.56% $2,830,635   11,212   0.53%
                      
    Net interest income   $120,799        $105,364    
    Interest rate spread       3.30%        3.41%
                      
    Net interest margin (2)       3.46%        3.56%
                      
    (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 
     September 30, 2022  September 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$575,149  $7,750   5.35% $630,622  $13,646   8.59%
    Commercial real estate 1,307,244   18,023   5.47%  1,009,141   12,072   4.75%
    Real estate construction 360,579   4,847   5.33%  283,106   2,664   3.73%
    Residential real estate 582,938   5,464   3.72%  512,135   5,073   3.93%
    Agricultural real estate 200,534   2,740   5.42%  134,673   1,819   5.36%
    Agricultural 113,351   1,406   4.92%  91,878   1,370   5.92%
    Consumer 101,203   1,325   5.20%  86,647   937   4.29%
    Total loans 3,240,998   41,555   5.09%  2,748,202   37,581   5.43%
    Securities                 
    Taxable securities 1,164,697   5,793   1.97%  966,651   3,920   1.61%
    Nontaxable securities 107,717   687   2.53%  94,527   655   2.75%
    Total securities 1,272,414   6,480   2.02%  1,061,178   4,575   1.71%
    Federal funds sold and other 89,156   513   2.29%  196,129   290   0.59%
    Total interest-earning assets$4,602,568   48,548   4.18% $4,005,509   42,446   4.20%
    Interest-bearing liabilities                 
    Demand savings and money market deposits$2,425,824   3,118   0.51% $2,082,515   862   0.16%
    Time deposits 655,421   1,285   0.78%  619,525   1,019   0.65%
    Total interest-bearing deposits 3,081,245   4,403   0.57%  2,702,040   1,881   0.28%
    FHLB advances 71,415   409   2.27%  1,401   10   2.78%
    Other borrowings 150,099   1,792   4.74%  131,180   1,580   4.78%
    Total interest-bearing liabilities$3,302,759   6,604   0.79% $2,834,621   3,471   0.49%
                      
    Net interest income   $41,944        $38,975    
    Interest rate spread       3.39%        3.71%
                      
    Net interest margin (2)       3.62%        3.86%
                      
    (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 
     September 30, 2022  June 30, 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$575,149  $7,750   5.35% $588,126  $7,483   5.10%
    Commercial real estate 1,307,244   18,023   5.47%  1,210,185   14,521   4.81%
    Real estate construction 360,579   4,847   5.33%  384,317   4,297   4.48%
    Residential real estate 582,938   5,464   3.72%  597,680   5,206   3.49%
    Agricultural real estate 200,534   2,740   5.42%  202,038   2,643   5.25%
    Agricultural 113,351   1,406   4.92%  134,826   1,533   4.56%
    Consumer 101,203   1,325   5.20%  99,680   1,166   4.69%
    Total loans 3,240,998   41,555   5.09%  3,216,852   36,849   4.59%
    Securities                 
    Taxable securities 1,164,697   5,793   1.97%  1,210,828   5,584   1.85%
    Nontaxable securities 107,717   687   2.53%  108,271   678   2.51%
    Total securities 1,272,414   6,480   2.02%  1,319,099   6,262   1.90%
    Federal funds sold and other 89,156   513   2.29%  140,016   513   1.47%
    Total interest-earning assets$4,602,568   48,548   4.18% $4,675,967   43,624   3.74%
    Interest-bearing liabilities                 
    Demand savings and money market deposits$2,425,824   3,118   0.51% $2,481,602   1,346   0.22%
    Time deposits 655,421   1,285   0.78%  630,698   837   0.53%
    Total interest-bearing deposits 3,081,245   4,403   0.57%  3,112,300   2,183   0.28%
    FHLB advances 71,415   409   2.27%  80,266   176   0.88%
    Other borrowings 150,099   1,792   4.74%  157,796   1,699   4.32%
    Total interest-bearing liabilities$3,302,759   6,604   0.79% $3,350,362   4,058   0.49%
                      
    Net interest income   $41,944        $39,566    
    Interest rate spread       3.39%        3.25%
                      
    Net interest margin (2)       3.62%        3.39%
                      
    (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 
      September 30,  June 30,  March 31,  December 31,  September 30, 
      2022  2022  2022  2021  2021 
                    
    Total stockholders' equity $395,806  $428,115  $452,015  $500,631  $417,749 
    Less: goodwill  53,101   53,101   54,465   54,465   31,601 
    Less: core deposit intangibles, net  11,598   12,554   13,830   14,879   12,963 
    Less: mortgage servicing rights, net  201   226   251   276   — 
    Less: naming rights, net  1,054   1,065   1,076   1,087   1,098 
    Tangible common equity $329,852  $361,169  $382,393  $429,924  $372,087 
    Common shares outstanding at period end  16,017,834   16,106,818   16,454,966   16,760,115   14,365,785 
    Diluted common shares outstanding at period end  16,225,591   16,289,635   16,662,779   17,050,115   14,637,306 
    Book value per common share $24.71  $26.58  $27.47  $29.87  $29.08 
    Tangible book value per common share $20.59  $22.42  $23.24  $25.65  $25.90 
    Tangible book value per diluted common share $20.33  $22.17  $22.95  $25.22  $25.42 
                    
    Total assets $5,000,415  $5,002,156  $5,078,623  $5,137,631  $4,263,268 
    Less: goodwill  53,101   53,101   54,465   54,465   31,601 
    Less: core deposit intangibles, net  11,598   12,554   13,830   14,879   12,963 
    Less: mortgage servicing rights, net  201   226   251   276   — 
    Less: naming rights, net  1,054   1,065   1,076   1,087   1,098 
    Tangible assets $4,934,461  $4,935,210  $5,009,001  $5,066,924  $4,217,606 
    Total stockholders' equity to total assets  7.92%  8.56%  8.90%  9.74%  9.80%
    Tangible common equity to tangible assets  6.68%  7.32%  7.63%  8.48%  8.82%
                    
    Total average stockholders' equity $436,191  $437,483  $492,599  $563,046  $422,879 
    Less: average intangible assets  66,445   68,978   70,181   61,186   46,335 
    Average tangible common equity $369,746  $368,505  $422,418  $501,860  $376,544 
    Net income (loss) allocable to common stockholders $15,171  $15,259  $15,650  $10,466  $11,773 
    Add: amortization of intangible assets  992   1,148   1,085   1,116   1,040 
    Less: tax effect of intangible assets amortization  208   241   228   234   218 
    Adjusted net income (loss) allocable to common
      stockholders    		 $15,955  $16,166  $16,507  $11,348  $12,595 
    Return on total average stockholders' equity
      (ROAE) annualized    		  13.80%  13.99%  12.88%  7.37%  11.05%
    Return on average tangible common equity
      (ROATCE) annualized    		  17.12%  17.60%  15.85%  8.97%  13.27%
                    
    Non-interest expense $32,236  $31,436  $29,459  $38,089  $30,689 
    Less: loss on debt extinguishment  —   —   —   —  $372 
    Less: merger expense  115   88   323   4,562   4,015 
    Adjusted non-interest expense $32,121  $31,348  $29,136  $33,527  $26,302 
    Net interest income $41,944  $39,566  $39,289  $37,215  $38,975 
    Non-interest income  8,969   9,637   9,022   9,199   7,831 
    Less: net gain on acquisition and branch sales  —   540   —   —   — 
    Less: net gains (losses) from securities transactions  (17)  (32)  40   8   381 
    Adjusted non-interest income $8,986  $9,129  $8,982  $9,191  $7,450 
    Net interest income plus adjusted non-interest income $50,930  $48,695  $48,271  $46,406  $46,425 
    Non-interest expense to
      net interest income plus non-interest income    		  63.32%  63.89%  60.98%  82.06%  65.57%
    Efficiency ratio  63.07%  64.38%  60.36%  72.25%  56.65%
    Net income (loss) allocable to common stockholders $15,171  $15,259  $15,650  $10,466  $11,773 
    Add: income tax provision  3,642   1,684   3,614   (16)  3,286 
    Add: provision (reversal) of credit losses  (136)  824   (412)  (2,125)  1,058 
    Pre-tax, pre-provision income $18,677  $17,767  $18,852  $8,325  $16,117 
    Total average assets $4,988,755  $5,067,687  $5,108,120  $5,068,301  $4,275,298 
    Total average stockholders' equity $436,191  $437,483  $492,599  $563,023  $422,879 
    Return on average assets (ROAA) annualized  1.21%  1.21%  1.24%  0.82%  1.09%
    Adjusted return on average assets  1.49%  1.41%  1.50%  0.65%  1.50%
    Adjusted return on average equity  16.99%  16.29%  15.52%  5.87%  15.12%

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