CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

NOTE 25 – CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

Presented below is the condensed financial information as to financial position, results of operations and cash flows of the Parent Company.

CONDENSED BALANCE SHEETS

December 31, 2022, and 2021

(Dollar Amounts in thousands, except per share data)

	2022		2021
ASSETS
Cash and due from banks	$	12,108	$	25,063
Investment in Equity Bank		490,755		572,414
Investment in EBAC		3,325		3,538
Investment in ERMI		405		—
Other assets		2,035		342
Total assets	$	508,628	$	601,357
LIABILITIES AND STOCKHOLDERS’ EQUITY
Bank stock loan	$	—	$	—
Subordinated debt		96,392		95,885
Interest payable and other liabilities		2,178		4,841
Total liabilities		98,570		100,726
Stockholders’ equity		410,058		500,631
Total liabilities and stockholders’ equity	$	508,628	$	601,357

CONDENSED STATEMENTS OF INCOME

Years ended December 31, 2022, 2021, and 2020

(Dollar Amounts in thousands, except per share data)

	2022			2021			2020
Dividends from Equity Bank	$	33,903		$	14,251		$	7,500
Other income		4			56			1
Total income		33,907			14,307			7,501
Expenses
Interest expense		6,796			6,261			3,924
Other expenses		2,516			3,450			2,536
Total expenses		9,312			9,711			6,460
Income before income tax and equity in undistributed    income (loss) of subsidiaries		24,595			4,596			1,041
Income tax benefit		2,039			1,551			1,504
Income before equity in undistributed income (loss)    of subsidiaries		26,634			6,147			2,545
Equity in undistributed income (loss) of Equity Bank		31,462			46,710			(77,143	)
Equity in undistributed income (loss) of EBAC		(413	)		(377	)		(372	)
Equity in undistributed income (loss) of ERMI		5			—			—
Net income (loss) and net income (loss) allocable to common stockholders	$	57,688		$	52,480		$	(74,970	)

CONDENSED STATEMENTS OF CASH FLOWS

Years ended December 31, 2022, 2021, and 2020

(Dollar Amounts in thousands, except per share data)

	2022			2021			2020
Cash flows from operating activities
Net income (loss)	$	57,688		$	52,480		$	(74,970	)
Adjustments to reconcile net income to net cash from    operating activities:
Stock based compensation		3,325			2,906			3,473
Equity in undistributed (income) loss of Equity Bank		(31,462	)		(46,710	)		77,143
Equity in undistributed (income) loss of EBAC		413			377			372
Equity in undistributed (income) loss of ERMI		(5	)		—			—
Net amortization of purchase valuation adjustments		506			485			388
Net change in:		—
Other assets		1,464			6,965			(300	)
Interest payable and other liabilities		(5,912	)		(207	)		(4,524	)
Net cash from (to) operating activities		26,017			16,296			1,582
Cash flows (to) from investing activities
Proceeds from sales, calls, pay-downs and maturities of AFS securities		—			376		—
Net redemptions (purchases) of correspondent and miscellaneous other stock		(2,425	)		—		—
Purchase of net assets of ASBI, net of cash acquired		—			(8,209	)	—
Additional investment in Equity Bank		—			—			(17,200	)
Additional investment in EBAC		(200	)		—			(450	)
Additional investment in ERMI		(400	)		—			—
Net cash (used in) investing activities		(3,025	)		(7,833	)		(17,650	)
Cash flows (to) from financing activities
Borrowings on bank stock loan		—			—			38,354
Principal payments on bank stock loan		—			—			(47,344	)
Borrowings on subordinated debt		—			—			75,000
Subordinated debt issue cost		—			(16	)		(2,265	)
Proceeds from exercise of employee stock options		2,011			3,847			20
Principal payments on employee stock loan		—			43			34
Proceeds from employee stock purchase plan		792			569			596
Purchase of treasury stock		(33,186	)		(18,664	)		(19,348	)
Dividends paid on common stock		(5,564	)		(1,149	)	—
Net cash provided by (used in) financing activities		(35,947	)		(15,370	)		45,047
Net change in cash and cash equivalents		(12,955	)		(6,907	)		28,979
Cash and cash equivalents, beginning of period		25,063			31,970			2,991
Ending cash and cash equivalents	$	12,108		$	25,063		$	31,970