Equity Bank(EQBK) - 2021 Q2 - Quarterly Report

Cautionary Note Regarding Forward-Looking Statements This section cautions that the report contains forward-looking statements, subject to inherent risks and uncertainties, which the Company does not publicly update Forward-Looking Statements Disclosure This section highlights that the report contains forward-looking statements, which are not historical facts and are subject to various risks, assumptions, and uncertainties - Forward-looking statements are based on current expectations, estimates, and projections, but actual results may differ materially due to inherent uncertainties and risks, particularly those related to the COVID-19 pandemic[9] - Key risks include external economic and market factors (e.g., interest rates, inflation, demand for loans), credit quality deterioration, real estate market impacts, loss of major relationships, liquidity issues, technological advances, cybersecurity breaches, and regulatory changes[10] - The Company does not undertake any obligation to publicly update or review any forward-looking statement[12] Part I Financial Information Item 1. Financial Statements This section presents the unaudited condensed interim consolidated financial statements for Equity Bancshares, Inc., including detailed notes on significant accounting policies, securities, loans, and other financial matters Consolidated Balance Sheets This section presents the Company's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity at June 30, 2021, and December 31, 2020 | ASSETS (in thousands) | June 30, 2021 (Unaudited) | December 31, 2020 | | :-------------------- | :------------------------ | :---------------- | | Cash and cash equivalents | $139,321 | $280,698 | | Available-for-sale securities | $1,041,613 | $871,827 | | Loans, net of allowance for credit losses | $2,763,227 | $2,557,987 | | Total assets | $4,268,216 | $4,013,356 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | | | | Deposits | $3,687,555 | $3,447,590 | | Total liabilities | $3,855,221 | $3,605,707 | | Total stockholders' equity | $412,995 | $407,649 | - Total assets increased by $254,860 thousand (6.35%) from December 31, 2020, to June 30, 2021[17] - Loans, net of allowance for credit losses, increased by $205,240 thousand (8.02%) over the same period[17] - Total deposits increased by $239,965 thousand (6.96%) from December 31, 2020, to June 30, 2021[17] Consolidated Statements of Income This section presents the Company's consolidated statements of income, detailing revenues, expenses, and net income for the three and six months ended June 30, 2021 and 2020 | (Dollar amounts in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest and dividend income | $38,318 | $37,933 | $74,130 | $78,490 | | Total interest expense | $3,688 | $5,042 | $7,741 | $13,504 | | Net interest income | $34,630 | $32,891 | $66,389 | $64,986 | | Provision (reversal) for credit losses | $(1,657) | $12,500 | $(7,413) | $22,440 | | Total non-interest income | $9,100 | $5,732 | $15,812 | $11,038 | | Total non-interest expense | $25,806 | $23,937 | $50,687 | $49,695 | | Net income | $15,166 | $1,689 | $30,241 | $2,947 | | Basic earnings per share | $1.06 | $0.11 | $2.10 | $0.19 | | Diluted earnings per share | $1.03 | $0.11 | $2.06 | $0.19 | - Net income for the three months ended June 30, 2021, increased significantly to $15,166 thousand from $1,689 thousand in the prior year, driven by a reversal in provision for credit losses and higher non-interest income[19] - Basic EPS for the three months ended June 30, 2021, rose to $1.06 from $0.11 in the prior year[19] - For the six months ended June 30, 2021, net income was $30,241 thousand, a substantial increase from $2,947 thousand in the same period of 2020, primarily due to a reversal in provision for credit losses[19] Consolidated Statements of Comprehensive Income This section presents the Company's consolidated statements of comprehensive income, including net income and other comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020 | (Dollar amounts in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $15,166 | $1,689 | $30,241 | $2,947 | | Other comprehensive income (loss), net of tax | $1,431 | $(379) | $(6,331) | $3,393 | | Comprehensive income | $16,597 | $1,310 | $23,910 | $6,340 | - Comprehensive income for the three months ended June 30, 2021, was $16,597 thousand, up from $1,310 thousand in the prior year, benefiting from positive other comprehensive income[22] - For the six months ended June 30, 2021, comprehensive income was $23,910 thousand, significantly higher than $6,340 thousand in the same period of 2020, despite a negative other comprehensive income[22] Consolidated Statements of Stockholders' Equity This section details changes in the Company's consolidated stockholders' equity, including net income, other comprehensive income, stock-based compensation, and treasury stock transactions | (Dollar amounts in thousands, except share data) | Balance at April 1, 2021 | Net Income | Other Comprehensive Income (loss), net of tax effects | Stock-based Compensation | Common Stock Issued upon Exercise of Stock Options | Treasury Stock Purchases | Balance at June 30, 2021 | | :----------------------------------------------- | :----------------------- | :--------- | :---------------------------------------------------- | :----------------------- | :------------------------------------------------- | :----------------------- | :----------------------- | | Total Stockholders' Equity | $397,815 | $15,166 | $1,431 | $948 | $508 | $(2,873) | $412,995 | - Total stockholders' equity increased from $407,649 thousand at January 1, 2021, to $412,995 thousand at June 30, 2021, primarily due to net income, stock-based compensation, and common stock issuance, partially offset by treasury stock purchases[29] - Treasury stock purchases for the six months ended June 30, 2021, amounted to $(8,780) thousand[29] Consolidated Statements of Cash Flows This section presents the Company's consolidated statements of cash flows, categorizing cash activities into operating, investing, and financing for the six months ended June 30, 2021 and 2020 | (Dollar amounts in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :---------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $47,236 | $24,646 | | Net cash provided by (used in) investing activities | $(430,235) | $(180,840) | | Net cash provided by (used in) financing activities | $241,62