GlobeNewswire Inc | Apr 20, 2021 07:07PM EDT

April 20, 2021

WICHITA, Kan., April 20, 2021 (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 $15.1 million and $1.02 per diluted share, including $0.65 of core earnings per diluted share the first quarter ended March 31, 2021.

Core earnings of $0.65 per diluted share for the quarter were driven by non-Paycheck Protection Program (PPP) loan growth of $43.7 million, representing growth of 1.9%, or 7.6% annualized growth from December 31, 2020. Further driving results this quarter was the recognition of origination fee income from the successful forgiveness of PPP loans by the SBA; improved operating performance with many of our fee-based initiatives such as wealth management and trust business lines, and debit card and commercial credit card interchange income. Expense control remained a focus with non-interest expenses, excluding merger related expenses, down from the linked-and-comparable-quarters in 2020.

Im very proud of the collaboration and entrepreneurial spirit of our Equity teams. Our lending, operations, and customer service teams have worked together to create innovative processes and efficiencies that benefit our customers said Brad S. Elliott, Chairman and CEO of Equity. Our teams have worked to onboard new core deposit customers, and we have seen sustained increases in usage of our digital products, including online banking, mobile deposit, and bill pay while continuing to service customers from fully opened lobbies. Entrepreneurial spirit is one of our core values, and we believe business, commercial, and retail customers continue to choose Equity Bank for our approach.

Throughout our footprint, our Equity Bank teams worked incredibly hard on behalf of our customers to secure PPP funds and help our customers maintain their businesses and livelihoods, said Mr. Elliott. A community bank prioritizes its customers and delivers dependable, innovative and round the clock service when our customers need it. Weve remained open, ready and available to our customers to serve loan and business growth needs in all facets.

In the quarter ended March 31, 2021, Equity originated $233.6 million in total PPP loans, and Equitys total outstanding PPP loans were $414.1 million at the end of the quarter. The Companys customers successfully had $99.7 million of PPP loans forgiven during the quarter, resulting in the recognition of fee income totaling $2.3 million in the three-month period ended March 31, 2021. At March 31, 2021, the total unrecognized fee income associated with PPP loans was $12.7 million. Through two rounds of PPP, Equity originated more than $610 million in PPP loans.

The results in the quarter ended December 31, 2020, reflect the Companys purchase of assets and deposit liabilities of Almena State Bank. Equity completed the data system conversion of Almena State Bank on January 16, 2021, following the acquisition of Almena State Bank branches from the Federal Deposit Insurance Corporation (FDIC) in October 2020. Results also reflect Equity customers obtaining forgiveness of Paycheck Protection Program (PPP) loans from the Small Business Administration (SBA) totaling $102.8 million resulting in a recognition of $3.8 million of fee income.

Notable Items:

-- The Company authorized a second stock repurchase program in the third quarter of 2020 totaling 800,000 shares. During the quarter ended March 31, 2021, the Company repurchased 233,012 shares at a weighted average cost of $25.35 per share, totaling $5.9 million. At the end of the quarter, capacity of 253,757 shares remained under the current repurchase program. -- The Company adopted ASU 2016-13, also known as Current Expected Credit Losses (CECL) at January 1, 2021. Upon implementation, the Company recognized a day one after tax $12.4 million reduction in stockholders equity and transferred $11.8 million of purchase credit impaired (PCI) marks to the allowance for credit losses (ACL) as purchase credit deteriorated (PCD) reserves. On implementation, the allowance for credit losses, including reserve on unfunded commitments, increased to $62.1 million from $33.7 million at December 31, 2020. -- During the quarter ended March 31, 2021, there was a release of reserve for credit losses of $5.8 million as compared to a $1.0 million provision for loan losses in the quarter ended December 31, 2020.

Equitys Balance Sheet Highlights:

-- Total loans held for investment of $2.80 billion at March 31, 2021, as compared to total loans held for investment of $2.59 billion at December 31, 2020. -- Total deposits of $3.63 billion at March 31, 2021, as compared to $3.45 billion at December 31, 2020. Signature deposits, including core deposits comprised of checking, savings and money market accounts, were $3.05 billion at March 31, 2021, relative to $2.82 billion at December 31, 2020. Included in this signature deposit growth was a $180.7 million increase in non-interest-bearing deposits, from $791.6 million at December 31, 2020, to $972.4 million at March 31, 2021. -- Total assets were $4.20 billion at March 31, 2021, as compared to $4.01 billion at December 31, 2020.

Financial Results for the Quarter Ended March 31, 2021

Net income allocable to common stockholders was $15.1 million, or $1.02 per diluted share, for the three months ended March 31, 2021, as compared to $12.5 million, or $0.84 per diluted share, for the three months ended December 31, 2020, an increase of $2.6 million. This increase was attributable to a release of reserve for credit losses of $5.8 million during the quarter as compared to a provision for loan losses of $1.0 million during the fourth quarter of 2020. This $6.8 million provision improvement as well as the decrease in non-interest expense of $3.6 million and increase in non-interest income, exclusive of gain on acquisition, of $435 thousand were partially offset by a $3.8 million decrease in net interest income, a $2.2 million increase in provision for income taxes and a $2.2 million reduction in gain on acquisition.

Net Interest Income

Net interest income was $31.8 million for the three months ended March 31, 2021, as compared to $35.6 million for the three months ended December 31, 2020, a decrease of $3.8 million, or 10.7%. The decrease in net interest income was primarily driven by a 63-basis point decrease in average rate earned on interest-earning assets, to 3.73% for the quarter ended March 31, 2021, from 4.36% for the quarter ended December 31, 2020. The decline in yield on earning assets was driven, in part, by the success of our forgiveness program with regard to the first round of PPP funding during the fourth quarter of 2020 resulting in a comparative reduction in interest income of $651 thousand; the success of the special assets team in processing program assets in the fourth quarter of 2020 resulting in a comparable decline of $1.1 million; and a reduction in loan fee recognition. The cost of interest-bearing liabilities declined to 0.58% or seven basis points for the quarter ended March 31, 2021 from 0.65% in the quarter ended December 31, 2020. The cost of interest-bearing deposits declined by seven basis points to 0.36% for the three months ended March 31, 2021 from 0.43% in the previous quarter primarily attributed to the reduction in the cost of time deposits, that slipped to 16 basis points between the quarters.

Provision for Credit Losses

During the three months ended March 31, 2021, there was a reversal of $5.8 million in the allowance for credit losses recognized through the provision for credit losses as compared to a $1.0 million provision for loan losses for the three months ended December 31, 2020. For the three months ended March 31, 2021, we had net charge-offs of $65 thousand as compared to $1.4 million for the three months ended December 31, 2020. The reversal is attributed primarily to improved economic inputs into the CECL model and, to a lesser extent, an improvement in historical loss experience and associated impact on the allowance for credit losses.

Non-Interest Income

Total non-interest income was $6.7 million for the three months ended March 31, 2021, as compared to $8.5 million for the three months ended December 31, 2020, or $6.4 million excluding the $2.1 million net gain on the purchase and assumption of Almena State Bank. Other non-interest income was $1.3 million, an increase of $439 thousand, or 51.5%, from the quarter ended December 31, 2020. The largest contributor was a $197 thousand increase from derivative transactions. The first quarter increase in value of bank-owned life insurance was $601 thousand, as compared to $489 thousand during the fourth quarter of 2020.

Non-Interest Expense

Total non-interest expense for the quarter ended March 31, 2021, was $24.9 million as compared to $28.5 million for the quarter ended December 31, 2020. The $3.6 million reduction is attributed to $1.6 million less in other real estate owned expense and a $1.3 million decline in salaries and employee benefits. The most significant contributor to the decrease in other real estate owned expense was a $947 thousand valuation adjustment during the fourth quarter of 2020 on two facilities that were closed in May 2020.

Asset Quality

As of March 31, 2021, Equitys allowance for credit losses, plus reserve for unfunded commitments, to total loans was 2.02%, as compared to 1.30% at December 31, 2020. Total reserves to total loans were approximately 2.30% as of March 31, 2021, as compared to 2.12% at December 31, 2020. Nonperforming assets were $70.1 million as of March 31, 2021, or 1.67% of total assets. Nonperforming assets were $54.6 million at December 31, 2020, or 1.36% of total assets. Total other real estate owned declined to $10.6 million at March 31, 2021 from $11.7 million in the linked quarter. The increase of non-performing assets is attributed to the Companys adoption of ASC 326 on January 1, 2021, and consequently transferring $11.8 million of PCI loan marks to PCD which is included in the ACL. The PCI marks, primarily attributed to acquired loans associated with Almena State Bank, previously reduced the amortized cost basis of the acquired loans before the January 1, 2021 CECL implementation.

Regulatory Capital

The Companys ratio of common equity tier 1 capital to risk-weighted assets was 12.5%, the total capital to risk-weighted assets was 17.0% and the total leverage ratio was 8.7% at March 31, 2021. At December 31, 2020, the Companys common equity tier 1 capital to risk-weighted assets ratio was 12.8%, the total capital to risk-weighted assets ratio was 17.4% and the total leverage ratio was 9.3%. The Companys subsidiary, Equity Bank, had a ratio of common equity tier 1 capital to risk-weighted assets of 14.4%, a ratio of total capital to risk-weighted assets of 15.7% and a total leverage ratio of 9.6% at March 31, 2021. At December 31, 2020, Equity Banks ratio of common equity tier 1 capital to risk-weighted assets was 14.5%, the ratio of total capital to risk-weighted assets was 15.7% and the total leverage ratio was 10.1%.

Non-GAAP Financial Measures

In addition to evaluating the Companys 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 Companys GAAP financial information.

The efficiency ratio is used as a common measure by banks as a comparable metric to understand the Companys expense structure relative to its 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, provision for loan losses and goodwill impairment 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 the 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 Companys 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 8 in the following press release tables.

Conference Call and Webcast

Equity Chairman and Chief Executive Officer, Brad Elliott, and Executive Vice President and Chief Financial Officer, Eric Newell, will hold a conference call and webcast to discuss the 2021 first quarter results on Wednesday, April 21, 2021, at 10:00 a.m. eastern time, 9:00 a.m. central time.

Investors, news media and other participants should register for the call or audio webcast at investor.equitybank.com. On Wednesday, April 21, 2021, participants may also dial into the call toll-free at (844) 534-7311 from anywhere in the U.S. or (574) 990-1419 internationally, using conference ID no. 9542529.

Participants are encouraged to dial into the call or access the webcast approximately 10 minutes prior to the start time. Presentation slides to pair with the call or webcast will be posted one hour prior to the call at investor.equitybank.com.

A replay of the call and webcast will be available two hours following the close of the call until April 28, 2021, accessible at (855) 859-2056 with conference ID no. 9542529 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. Equitys 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 Equitys management with respect to, among other things, future events and Equitys 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 Equitys industry, managements beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equitys 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 Equitys 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 Equitys Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 9, 2021, and any updates to those risk factors set forth in Equitys 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 Equitys 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 Equitys 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 Equitys behalf may issue.

Investor Contact:

Chris NavratilSVP, FinanceEquity Bancshares, Inc.(316) 612-6014cnavratil@equitybank.com

Media Contact:

John J. HanleySVP, Senior Director of MarketingEquity Bancshares, Inc.(816) 505-4063jhanley@equitybank.com

Unaudited Financial Tables

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

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

As of and for the three months ended March 31, December 31, September June 30, March 31, 2021 2020 30, 2020 2020 2020Interest and dividend incomeLoans, including $ 31,001 $ 35,383 $ 32,278 $ 32,627 $ 34,376 feesSecurities, 3,799 3,408 3,476 4,017 4,620 taxableSecurities, 724 913 923 880 966 nontaxableFederal funds sold 288 285 405 409 595 and otherTotal interest and 35,812 39,989 37,082 37,933 40,557 dividend incomeInterest expense Deposits 2,410 2,755 3,064 3,899 6,864 Federal fundspurchased and 22 25 25 24 31 retail repurchaseagreementsFederal Home Loan 65 94 471 552 1,175 Bank advancesFederal ReserveBank discount ? ? ? 6 ? windowBank stock loan ? ? ? 306 109 Subordinated 1,556 1,556 1,415 255 283 debenturesTotal interest 4,053 4,430 4,975 5,042 8,462 expense Net interest 31,759 35,559 32,107 32,891 32,095 incomeProvision for (5,756 ) 1,000 815 12,500 9,940 credit lossesNet interestincome after 37,515 34,559 31,292 20,391 22,155 provision forcredit lossesNon-interest incomeService charges 1,596 1,759 1,706 1,365 2,026 and feesDebit card income 2,350 2,401 2,491 2,201 2,043 Mortgage banking 935 855 877 831 590 Increase in valueof bank-owned life 601 489 489 481 482 insuranceNet gain on (78 ) 2,145 ? ? ? acquisitionNet gains (losses)from securities 17 (1 ) ? 4 8 transactionsOther 1,291 852 922 850 157 Total non-interest 6,712 8,500 6,485 5,732 5,306 incomeNon-interest expenseSalaries and 12,722 14,053 13,877 12,695 13,504 employee benefitsNet occupancy and 2,368 2,206 2,224 2,119 2,235 equipmentData processing 2,663 2,748 2,817 2,763 2,663 Professional fees 1,073 1,095 877 943 1,367 Advertising andbusiness 682 801 598 403 696 developmentTelecommunications 580 510 486 390 487 FDIC insurance 415 797 360 414 517 Courier and 369 338 366 353 384 postageFree nationwide 472 423 439 327 420 ATM costAmortization ofcore deposit 1,034 1,044 1,030 974 802 intangiblesLoan expense 238 161 107 287 234 Other real estate 5 1,600 133 269 308 ownedMerger expenses 152 299 ? ? ? Goodwill ? ? 104,831 ? ? impairmentOther 2,108 2,385 2,690 2,000 2,141 Total non-interest 24,881 28,460 130,835 23,937 25,758 expenseIncome (loss) 19,346 14,599 (93,058 ) 2,186 1,703 before income taxProvision forincome taxes 4,271 2,111 (2,653 ) 497 445 (benefit)Net income (loss)and net income(loss) allocable $ 15,075 $ 12,488 $ (90,405 ) $ 1,689 $ 1,258 to commonstockholdersBasic earnings $ 1.04 $ 0.85 $ (6.01 ) $ 0.11 $ 0.08 (loss) per shareDiluted earnings $ 1.02 $ 0.84 $ (6.01 ) $ 0.11 $ 0.08 (loss) per shareWeighted average 14,464,291 14,760,810 15,040,407 15,209,483 15,387,697 common sharesWeighted averagediluted common 14,734,083 14,934,058 15,040,407 15,304,009 15,595,024 shares

TABLE 2. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)

March 31, December September June 30, March 31, 2021 31, 30, 2020 2020 2020 2020ASSETS Cash and due from $ 136,190 $ 280,150 $ 65,534 $ 178,045 $ 141,989 banksFederal funds sold 498 548 305 245 263 Cash and cash 136,688 280,698 65,839 178,290 142,252 equivalentsInterest-bearingtime deposits in 249 249 499 2,248 2,498 other banksAvailable-for-sale 998,100 871,827 798,576 177,228 187,812 securitiesHeld-to-maturity ? ? ? 662,522 721,992 securities^(1)Loans held for sale 8,609 12,394 9,053 4,802 6,494 Loans, net ofallowance for credit 2,740,215 2,557,987 2,691,626 2,772,256 2,485,208 losses^(2)Other real estate 10,559 11,733 8,727 7,374 5,870 owned, netPremises and 90,322 89,412 86,087 87,055 84,732 equipment, netBank-owned life 102,645 77,044 76,555 76,066 75,585 insuranceFederal Reserve Bankand Federal Home 15,174 16,415 32,545 31,832 31,662 Loan Bank stockInterest receivable 16,655 15,831 18,110 19,598 15,549 Goodwill 31,601 31,601 31,601 136,432 136,432 Core deposit 15,023 16,057 17,101 18,131 19,105 intangibles, netOther 30,344 32,108 29,252 31,435 28,641 Total assets $ 4,196,184 $ 4,013,356 $ 3,865,571 $ 4,205,269 $ 3,943,832 LIABILITIES AND STOCKHOLDERS? EQUITYDeposits Demand $ 972,364 $ 791,639 $ 693,967 $ 756,613 $ 508,441 Totalnon-interest-bearing 972,364 791,639 693,967 756,613 508,441 depositsSavings, NOW and 2,074,261 2,029,097 1,816,307 1,800,132 1,668,145 money marketTime 587,905 626,854 623,344 690,522 783,811 Totalinterest-bearing 2,662,166 2,655,951 2,439,651 2,490,654 2,451,956 depositsTotal deposits 3,634,530 3,447,590 3,133,618 3,247,267 2,960,397 Federal fundspurchased and retail 40,339 36,029 46,295 51,557 37,113 repurchaseagreementsFederal Home Loan 9,926 10,144 167,862 344,900 389,620 Bank advancesBank stock loan ? ? ? ? 40,000 Subordinated 87,788 87,684 87,537 55,575 14,638 debenturesContractual 4,856 5,189 5,478 5,571 5,781 obligationsInterest payable and 20,930 19,071 22,609 20,633 18,932 other liabilitiesTotal liabilities 3,798,369 3,605,707 3,463,399 3,725,503 3,466,481 Commitments andcontingent liabilitiesStockholders? equity Common stock 175 174 174 174 174 Additional paid-in 387,939 386,820 386,017 384,955 383,850 capitalRetained earnings 53,459 50,787 38,299 128,704 127,015 Accumulated othercomprehensive income 12,019 19,781 21,074 3,390 3,769 (loss)Employee stock loans ? (43 ) (43 ) (43 ) (43 )Treasury stock (55,777 ) (49,870 ) (43,349 ) (37,414 ) (37,414 )Total stockholders? 397,815 407,649 402,172 479,766 477,351 equityTotal liabilitiesand stockholders? $ 4,196,184 $ 4,013,356 $ 3,865,571 $ 4,205,269 $ 3,943,832 equity ^(1) Fair marketvalue of $ ? $ ? $ ? $ 689,206 $ 750,900 held-to-maturitysecurities^(2) Allowance for 55,525 33,709 34,087 34,078 21,915 credit losses

TABLE 3. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)(Dollars in thousands, except per share data)

As of and for the three months ended March 31, December 31, September June 30, March 31, 30, 2021 2020 2020 2020 2020 LoansHeld-For-Investment by TypeCommercial real $ 1,218,545 $ 1,188,696 $ 1,188,329 $ 1,191,336 $ 1,200,762 estateCommercial and 820,728 734,495 857,244 883,355 542,571 industrialResidential real 438,503 381,958 402,242 442,486 480,603 estateAgricultural real 134,944 133,693 127,349 129,080 130,795 estateConsumer 89,256 58,532 67,465 71,037 64,799 Agricultural 93,764 94,322 83,084 89,040 87,593 Total loans 2,795,740 2,591,696 2,725,713 2,806,334 2,507,123 held-for-investmentAllowance for (55,525 ) (33,709 ) (34,087 ) (34,078 ) (21,915 )credit lossesNet loans $ 2,740,215 $ 2,557,987 $ 2,691,626 $ 2,772,256 $ 2,485,208 held-for-investment Asset Quality RatiosAllowance forcredit losses onloans and 2.02 % 1.30 % 1.25 % 1.21 % 0.87 %unfundedcommitments tototal loansPast due ornonaccrual loans to 2.58 % 1.99 % 2.12 % 1.88 % 2.47 %total loansNonperformingassets to total 1.67 % 1.36 % 1.55 % 1.37 % 1.22 %assetsNonperformingassets to total 2.50 % 2.10 % 2.19 % 2.05 % 1.92 %loans plus otherreal estate ownedClassified assetsto bank total 26.45 % 25.50 % 18.35 % 20.81 % 19.50 %regulatory capital Selected AverageBalance Sheet Data (QTD Average)Investment $ 947,453 $ 814,114 $ 802,525 $ 877,308 $ 907,910 securitiesTotal gross loans 2,736,918 2,692,223 2,758,680 2,806,865 2,525,344 receivableInterest-earning 3,891,140 3,647,730 3,679,168 3,786,629 3,519,267 assetsTotal assets 4,143,752 3,910,628 4,041,187 4,159,336 3,888,205 Interest-bearing 2,690,159 2,551,219 2,430,407 2,487,187 2,531,508 depositsBorrowings 139,360 172,730 377,158 384,727 355,303 Totalinterest-bearing 2,829,519 2,723,949 2,807,565 2,871,914 2,886,811 liabilitiesTotal deposits 3,577,625 2,960,791 3,145,810 3,257,631 3,021,181 Total liabilities 3,748,114 3,501,056 3,558,099 3,675,731 3,405,638 Total stockholders' 395,638 409,572 483,088 483,605 482,567 equityTangible common 347,262 355,025 329,039 327,411 325,470 equity^* Performance ratios Return on averageassets (ROAA) 1.48 % 1.27 % (8.90 )% 0.16 % 0.13 %annualizedReturn on averageassets beforeincome tax, 1.33 % 1.59 % 1.24 % 1.42 % 1.20 %provision for loanlosses and goodwillimpairment*Return on averageequity (ROAE) 15.45 % 12.13 % (74.45 )% 1.40 % 1.05 %annualizedReturn on averageequity beforeincome tax, 13.93 % 15.15 % 10.37 % 12.21 % 9.70 %provision for loanlosses and goodwillimpairment*Return on averagetangible commonequity 18.57 % 14.93 % (108.31 )% 3.03 % 2.35 %(ROATCE) annualized^*Return on averagetangible commonequity 18.57 % 14.93 % 12.01 % 3.03 % 2.35 %adjusted forgoodwillimpairment*Yield on loans 4.59 % 5.23 % 4.65 % 4.68 % 5.47 %annualizedCost ofinterest-bearing 0.36 % 0.43 % 0.50 % 0.63 % 1.09 %deposits annualizedCost of total 0.27 % 0.37 % 0.39 % 0.48 % 0.91 %deposits annualizedNet interest margin 3.31 % 3.88 % 3.47 % 3.49 % 3.67 %annualizedEfficiency ratio^* 64.18 % 67.19 % 67.38 % 61.98 % 68.88 %Non-interest income 0.66 % 0.86 % 0.64 % 0.55 % 0.55 %/ average assetsNon-interestexpense / average 2.44 % 2.90 % 12.88 % 2.31 % 2.66 %assets Capital Ratios Tier 1 Leverage 8.73 % 9.30 % 8.76 % 8.52 % 9.02 %RatioCommon Equity Tier 12.52 % 12.82 % 12.76 % 12.02 % 11.67 %1 Capital RatioTier 1 Risk Based 13.07 % 13.37 % 13.32 % 12.57 % 12.20 %Capital RatioTotal Risk Based 17.02 % 17.35 % 17.35 % 15.33 % 13.00 %Capital RatioTotal stockholders'equity to total 9.48 % 10.16 % 10.40 % 11.41 % 12.10 %assetsTangible commonequity to tangible 8.44 % 9.05 % 9.23 % 8.00 % 8.47 %assets^*Book value per $ 27.66 $ 28.04 $ 27.08 $ 31.53 $ 31.41 common shareTangible book value $ 24.34 $ 24.68 $ 23.72 $ 21.29 $ 21.10 per common share^*Tangible book valueper diluted common $ 23.87 $ 24.32 $ 23.57 $ 21.13 $ 20.96 share^*

* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures, see Table 6. Non-GAAP Financial Measures

TABLE 4. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)(Dollars in thousands)

For the three months ended For the three months ended March 31, 2021 March 31, 2020 Average Interest Average Average Interest Average Outstanding Income/ Yield/ Outstanding Income/ Yield/ Balance Expense Rate^ Balance Expense Rate^ (3)(4) (3)(4)Interest-earning assetsLoans ^(1) Commercial and $ 803,012 $ 9,234 4.66 % $ 555,927 $ 7,881 5.70 %industrialCommercial real 971,825 11,441 4.77 % 913,065 12,942 5.70 %estateReal estate 255,677 2,178 3.45 % 267,388 3,575 5.38 %constructionResidential real 394,329 4,452 4.58 % 496,186 5,302 4.30 %estateAgricultural 140,875 1,696 4.88 % 137,664 2,091 6.11 %real estateConsumer 76,413 963 5.11 % 67,160 1,275 7.64 %Agricultural 94,787 1,037 4.44 % 87,954 1,310 5.99 %Total loans 2,736,918 31,001 4.59 % 2,525,344 34,376 5.47 %Securities Taxable 839,349 3,799 1.84 % 774,653 4,620 2.40 %securitiesNontaxable 108,104 724 2.72 % 133,257 966 2.92 %securitiesTotal securities 947,453 4,523 1.94 % 907,910 5,586 2.47 %Federal funds 206,769 288 0.56 % 86,013 595 2.78 %sold and otherTotalinterest-earning $ 3,891,140 35,812 3.73 % $ 3,519,267 40,557 4.64 %assetsInterest-bearing liabilitiesSavings, NOW andmoney market $ 2,079,057 971 0.19 % $ 1,724,774 3,125 0.73 %depositsTime deposits 611,102 1,439 0.96 % 806,734 3,739 1.86 %Totalinterest-bearing 2,690,159 2,410 0.36 % 2,531,508 6,864 1.09 %depositsFHLB advances 10,013 65 2.63 % 295,677 1,175 1.60 %Other borrowings 129,347 1,578 4.95 % 59,626 423 2.85 %Totalinterest-bearing $ 2,829,519 4,053 0.58 % $ 2,886,811 8,462 1.18 %liabilities Net interest $ 31,759 $ 32,095 incomeInterest rate 3.15 % 3.46 %spread Net interest 3.31 % 3.67 %margin ^(2) ^(1) Average loan balances include nonaccrual loans. ^(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.^(3) Tax exempt income is not included in the above table on a tax-equivalent basis.

TABLE 5. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)(Dollars in thousands)

For the three months ended For the three months ended March 31, 2021 December 31, 2020 Average Interest Average Average Interest Average Outstanding Income/ Yield/ Outstanding Income/ Yield/ Balance Expense Rate^ Balance Expense Rate^ (3)(4) (3)(4)Interest-earning assetsLoans ^(1) Commercial and $ 803,012 $ 9,234 4.66 % $ 782,433 $ 10,943 5.56 %industrialCommercial real 971,825 11,441 4.77 % 980,686 12,647 5.13 %estateReal estate 255,677 2,178 3.45 % 216,714 2,301 4.22 %constructionResidential real 394,329 4,452 4.58 % 406,450 5,005 4.90 %estateAgricultural 140,875 1,696 4.88 % 135,337 2,244 6.60 %real estateConsumer 76,413 963 5.11 % 78,430 1,080 5.48 %Agricultural 94,787 1,037 4.44 % 92,173 1,163 5.02 %Total loans 2,736,918 31,001 4.59 % 2,692,223 35,383 5.23 %Securities Taxable 839,349 3,799 1.84 % 698,985 3,408 1.94 %securitiesNontaxable 108,104 724 2.72 % 115,129 913 3.15 %securitiesTotal securities 947,453 4,523 1.94 % 814,114 4,321 2.11 %Federal funds 206,769 288 0.56 % 141,393 285 0.80 %sold and otherTotalinterest-earning $ 3,891,140 35,812 3.73 % $ 3,647,730 39,989 4.36 %assetsInterest-bearing liabilitiesSavings, NOW andmoney market $ 2,079,057 971 0.19 % $ 1,915,280 970 0.20 %depositsTime deposits 611,102 1,439 0.96 % 635,939 1,785 1.12 %Totalinterest-bearing 2,690,159 2,410 0.36 % 2,551,219 2,755 0.43 %depositsFHLB advances 10,013 65 2.63 % 39,245 94 0.95 %Other borrowings 129,347 1,578 4.95 % 133,485 1,581 4.71 %Totalinterest-bearing $ 2,829,519 4,053 0.58 % $ 2,723,949 4,430 0.65 %liabilities Net interest $ 31,759 $ 35,559 incomeInterest rate 3.15 % 3.71 %spread Net interest 3.31 % 3.88 %margin ^(2) ^(1) Average loan balances include nonaccrual loans. ^(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.^(3) Tax exempt income is not included in the above table on a tax-equivalent basis.

TABLE 6. NON-GAAP FINANCIAL MEASURES (Unaudited)(Dollars in thousands, except per share data)

As of and for the three months ended March 31, December 31, September June 30, March 31, 30, 2021 2020 2020 2020 2020 Income before $ 19,346 $ 14,599 $ (93,058 ) $ 2,186 $ 1,703 income taxesAdd: goodwill ? ? 104,831 ? ? impairmentLess: tax 4,271 2,111 2,652 497 445 effectAdjusted $ 15,075 $ 12,488 $ 9,121 $ 1,689 $ 1,258 incomeWeightedaverage 14,464,291 14,760,810 15,040,407 15,209,483 15,387,697 common sharesoutstandingEffect ofweightedaveragedilutive 269,792 173,248 82,804 94,526 207,327 sharesassumingpositive netincomeWeightedaverage 14,734,083 14,934,058 15,123,211 15,304,009 15,595,024 dilutedsharesDilutedearnings pershare $ 1.02 $ 0.84 $ 0.60 $ 0.11 $ 0.08 adjusted forgoodwillimpairment Totalstockholders' $ 397,815 $ 407,649 $ 402,172 $ 479,766 $ 477,351 equityLess: 31,601 31,601 31,601 136,432 136,432 goodwillLess: coredeposit 15,023 16,057 17,101 18,131 19,105 intangibles,netLess:mortgage ? ? 1 2 4 servicingasset, netLess: naming 1,119 1,130 1,141 1,152 1,163 rights, netTangible $ 350,072 $ 358,861 $ 352,328 $ 324,049 $ 320,647 common equityCommon sharesissued at 14,383,913 14,540,556 14,853,487 15,218,301 15,198,986 period endDilutedcommon shares 14,668,287 14,756,378 14,945,282 15,333,977 15,297,319 outstandingat period endBook valueper common $ 27.66 $ 28.04 $ 27.08 $ 31.53 $ 31.41 shareTangible bookvalue per $ 24.34 $ 24.68 $ 23.72 $ 21.29 $ 21.10 common shareTangible bookvalue per $ 23.87 $ 24.32 $ 23.57 $ 21.13 $ 20.96 dilutedcommon share Total assets $ 4,196,184 $ 4,013,356 $ 3,865,571 $ 4,205,269 $ 3,943,832 Less: 31,601 31,601 31,601 136,432 136,432 goodwillLess: coredeposit 15,023 16,057 17,101 18,131 19,105 intangibles,netLess:mortgage ? ? 1 2 4 servicingasset, netLess: naming 1,119 1,130 1,141 1,152 1,163 rights, netTangible $ 4,148,441 $ 3,964,568 $ 3,815,727 $ 4,049,552 $ 3,787,128 assetsTotalstockholders' 9.48 % 10.16 % 10.40 % 11.41 % 12.10 %equity tototal assetsTangiblecommon equity 8.44 % 9.05 % 9.23 % 8.00 % 8.47 %to tangibleassets Total averagestockholders' $ 395,638 $ 409,572 $ 483,088 $ 483,605 $ 482,567 equityLess: averageintangible 48,376 54,547 154,049 156,194 157,097 assetsAveragetangible $ 347,262 $ 355,025 $ 329,039 $ 327,411 $ 325,470 common equityNet income(loss)allocable to $ 15,075 $ 12,488 $ (90,405 ) $ 1,689 $ 1,258 commonstockholdersAdd: goodwill ? ? 104,831 ? ? impairmentLess: taxeffect of ? ? 5,305 ? ? goodwillimpairmentAdjusted netincome (loss) 15,075 12,488 9,121 1,689 1,258 plus goodwillimpairmentAmortizationof intangible 1,045 1,055 1,043 986 814 assetsLess: taxeffect ofintangible 219 222 234 207 171 assetsamortizationAdjusted netincome (loss)allocable to $ 15,901 $ 13,321 $ 9,930 $ 2,468 $ 1,901 commonstockholdersReturn ontotal average )stockholders' 15.45 % 12.13 % (74.45 % 1.40 % 1.05 %equity (ROAE)annualizedReturn onaveragetangible 18.57 % 14.93 % (108.31 ) 3.03 % 2.35 %common equity %(ROATCE)annualizedAdjustedreturn onaverage 18.57 % 14.93 % 12.01 % 3.03 % 2.35 %tangiblecommon equity Non-interest $ 24,881 $ 28,460 $ 130,835 $ 23,937 $ 25,758 expenseLess: merger 152 299 ? ? ? expenseLess:goodwill ? ? 104,831 ? ? impairmentNon-interestexpense,excludingmerger $ 24,729 $ 28,161 $ 26,004 $ 23,937 $ 25,758 expense andgoodwillimpairmentNet interest $ 31,759 $ 35,559 $ 32,107 $ 32,891 $ 32,095 incomeNon-interest 6,712 8,500 6,485 5,732 5,306 incomeLess: netgain on (78 ) 2,145 ? ? ? acquisitionLess: netgains(losses) from 17 (1 ) ? 4 8 securitiestransactionsNon-interestincome,excludinggains $ 6,773 $ 6,356 $ 6,485 $ 5,728 $ 5,298 (losses) fromsecuritiestransactionsNet interestincome plusnon-interestincome,excluding net $ 38,532 $ 41,915 $ 38,592 $ 38,619 $ 37,393 gains(losses) fromsecuritiestransactionsNon-interestexpense tonet interest 64.67 % 64.60 % 339.02 % 61.98 % 68.87 %income plusnon-interestincomeEfficiency 64.18 % 67.19 % 67.38 % 61.98 % 68.88 %ratioNet income(loss)allocable to $ 15,075 $ 12,488 $ (90,405 ) $ 1,689 $ 1,258 commonstockholdersAdd: income 4,271 2,111 (2,653 ) 497 445 tax provisionAdd:provision for (5,756 ) 1,000 815 12,500 9,940 loan lossesAdd: goodwill ? ? 104,831 ? ? impairmentAdjusted net $ 13,590 $ 15,599 $ 12,588 $ 14,686 $ 11,643 incomeTotal average $ 4,143,752 $ 3,910,628 $ 4,041,187 $ 4,159,336 $ 3,888,205 assetsTotal averagestockholders' $ 395,638 $ 409,572 $ 483,088 $ 483,605 $ 482,567 equityReturn onaverage 1.48 % 1.27 % (8.90 ) 0.16 % 0.13 %assets (ROAA) %annualizedAdjustedreturn on 1.33 % 1.59 % 1.24 % 1.42 % 1.20 %averageassetsAdjustedreturn on 13.93 % 15.15 % 10.37 % 12.21 % 9.70 %averageequity