EQBK - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2020 Equity Bancshares, Inc. Earnings Conference Call. At this time, all participant lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please Instructions]. [Operator hand over to I would host, conference to like now your the Chris Navratil. Please ahead. go

Chris Navratil

and results. clicking tab. via Presentation PDF joining the for to accompany will Presentation presentation thank download are conference slides our morning, available call of XXXX which and include at Equity quarter third for our call, discussion Good Bancshares you investor.equitybank.com by

for today webcast You posted investor.equitybank.com Event may also the click to player. icon the view at

on our will make call time player, please Please If Slide and slides this you're we important forward-looking From webcast note that today's call forward-looking actual not reference may viewing within to time, statements. advance. results automatically statements information may X, including regarding vary.

time you discussion. and that, allow for to us. it With Following questions all like joining Elliott. the Thank to turn Brad I'd over we further for presentation, will

Brad Elliott

your call, Thank Equity Bancshares. you, joining for Chris, our you and morning. in interest Thank and good

Chief Greg how the Joining me and achieve. with COVID-XX, excited is team our the I'm Despite Craig uncertainty Eric and CFO; of disruption Equity Newell, Kossover, President, Anderson. our been Operating to able has our Bank Officer;

operating has disruption XXXX with our Our of many currently we objectives, dealing the while accomplished company of weird world face. the

our that of team has protect to advantage and that our and remember been on continue take customers We as come better to opportunities support members capital serve can't way. frontlines time a our our positioned they the their might I communities.

$XX per our on program in third to we we'll to rearview focused share. and book key is improves Eric continue continued that merger goodwill impact for in our balance offensive believe operating sheet I intend need non-economic and We growth, we the goodwill totaling raising bank. growth joint is the our remain We in successfully to our mirror. high-performing become us of responsibly more release we initiatives allow are will earnings that impairment it the banks issue poised in repurchase share partners. for keep third to have adjustment Reserve quarter, Kansas advantage a no beneficial must stakeholders our the in strategic previously It looking our mentioned. I to accomplish quarter. our finished regulatory opportunistic discussed our and for in capital In ratios organic our will We detail of exam Federal value tangible with million, State opportunities with which moment. completed a take and

has or completed and book value tangible shares, end our We Our value to accretive $X.XX program September, in earnings. XXXX grown which XXXX since XX% stock all book per share. repurchase tangible XXX,XXX of the were of repurchasing

reserves for period the did at cash review. to addition, our million period, early this also XXXX, approved pandemic, pandemic. loans approach our helped set the result regulatory repurchase customers the XX% in deferral with a our to the of quarter teams current second equity In Board But At start to program being the the on our in customary cash. $XX aside in the of much subject We a for customers it of start It did took fourth this June reramping totaling advisor process. preserve of XXth. trusted very needed but

we And customers loans the XX-day the what had XX% assure remained deferral of September deferral, the the we progress As our to the additional were at quarter, ensured needed when our still still with only we at On impact XXth, deferrals an that date. those looking expired that needed in deferral on reported that our operate. focused they third to from showing pandemic.

the the are has from quarter, the early customers the X% be did period, our position some saw positioned in have is process, on able our to increased. the Through deferrals. they third our amount this end still at By hand pandemic. we we we cases, of in the customers' possibly experienced. remaining of now cash recovery expected, cash had thrive approximately As approach ever And of the to on taking this highest loans in survive the and

steadfast Over disruption. local the communities. partners and changed operating for their communities. of thank last I Equity customers approach helping to I'm several and adapting and our Anderson I to continues to and excited start months, am local the pleased at visited commitment many our I regularly COVID-XX our see to to regions the the bankers Craig are superior the met customers and levels team with our be to environment customers. our how

community take us bank, Eric, you what the of takes help don't to a we succeed. through it why do community As details quarter? the each

Eric Newell

Thank you, good and morning. Brad,

overall, resulting During book light value value analysis, to price, in ending regulatory reduction the uncertainty common loss quarter, in capital market company's lower balances, totaling our prior of fair valuation peers versus multiples used of related does not or XXth. affect a identified million, cash cash goodwill pandemic $X.XX GAAP liquidity, of and environment. the tangible the value capital the ratios. resulted impairment given to discount the quarter September flow in non-cash rates impairment stock including The this a higher in for our the stocks we which $XXX.X our impairment, book the forecast of impairment drop is in bank a the Driving in

the purposes. on $X.X due $XX.X to As million the effect some and in tax from expense capital differences created being assets timing for events, million, goodwill of taxable with recognition created totaled deferred tax of was book

pro $XX.X number GAAP a goodwill earnings pro pre-tax rate the PPP understanding loans includes effect Let our been resulting impairment, me of income peel net tax million balance sheet. been million diluted Without in of on share. the XX.X%, forma forma have have per the would the or using core performance. to This $X.XX assist would operating back $X.X

costs $X.XX with million loans PPP originating the in quarter. are these to loans. quarter, $X.X Both related compared net During we to recognized the of of fees SBA million second associated of PPP numbers

the is of of expenses associated with primarily trend million $XXX the is which loan the the the when the loan deferral million We we year in pre-tax due have anything million, $X.X a in pre-provision the recognize September and expected pro total deferring PPP future forgiveness $XXX,XXX quarter submitted $XXX,XXX see dollars reminder, This loan leaving the balances. for we been was from left compares that in during the September believe to of for Interest run not submitted second to non-recurring remainder our the The loans million, had the started a end the will $X.X million forgiving quarter and FAS have XXXX. average recognized that second XXth the the quarter. excluding XX% quarter million. XX totaled that in quarter the a salary quarters. million September timing benefit this balance be fees portfolio included At earned recorded forma net with a quarter $XX SBA associated PPP already in Pre-tax XXth, by be XXth, of PPP the third will fourth will which to had of the quarter ending approximately totaled of PPP in totaled the revenue origination. $XXX $XX.X at pre-provision to impairment. recognize. pre-tax rate in quarter recognized pre-provision $XX.X and revenue PPP program, As of we

showing held quarter, Our headwinds. basis press given granularity X net our release the the the stability declined interest total assets margin cost disclosure tables margin interest-bearing NIM adding up liabilities. linked table points in earning enhanced well and section. in We've of by our to loan in

the about FHLB Late the borrowing higher deposits $XXX points we of made value that happy particularly progress cost declining quarter, off a paid our interest-bearing XX had in a cost with million. the are We linked in basis relatively quarter. notional third

by in the to expect cost only quarter, in some of debt other a in million third fourth the X FHLB advances of we cost of quarter. We modest borrowings improvement $XX as in the see the months subordinated have increase offset modest

I driven mentioned repricing we by The CD XX in the months will of As in the earnings into continued declines deposits expectation of the the are average X second largely about Greg is portfolio quarter interest-bearing months be for and repricing. that future life call, portfolio. and

quarter we we of benefit see another before level expect out. to So

C&I, assets, This points has is handle. for respectively, a generally X.XX%, time loans. measured demand, total X.XX%, assets we yields, taken loans for on origination If continue compares would to a yield stability On The to will expected maintain X securities ending us see versus be over loans, earning basis portfolio respectively. September the have originating as analysis, the and total This quarter our yield. the X.XX%, new X.XX% loan from we to composition and X June the approach earning of handle allowed to XXth, in relative the and our total we with linked X.XX%, remix on And to X.XX%, quarter. yield the interest-earning into declining exclude assets a decline XXth. PPP ending earned quarter the loans X loans we NIM in

pro Excluding for the quarters X.XX% forma September June and PPP XXth respectively. XXth be NIM loans again, X.XX%, and ending would

lower half of provision our for $XXX,XXX, was XXXX. loss note the will than we You recorded materially loan that first in what

allowance to in for under reminder, of be losses, a the loans. add loan loss and the for deferred factors and the rise methodology we qualitative to loan losses. million allowance half Qualitative As to included in of the $XX.X incidence we the incurred XXXX the unemployment for continue used factors first

ALLL, remains. not circumstances from At believe and result which loss adopt denominator. included of have acquired Act, will ratio XXth, so. excluding coverage If minimal $X.X CARES balance provision through pro run we're to PPP eased, adopting under both incurred ending will required these to When adoption While the material at CECL, factors effect method period the the when December had the are loans XXXX, the unchanged, the the ready of XX, have of in marks we When current quarter. we not drove million on loans. capital Under circumstances the CECL materially fourth the in X.XX% the and rises do forma do the to changed, provision not quarter. and credit September the in a earnings. remain Facts uncertainty

Greg? X%, at XXXX. of expected coverage our loans ACL December to us XX, are well CECL, that adopting We after of non-PPP expecting be for north positioning is

Greg Kossover

our at customers want uncertainty. resulted I to which comments you at higher to Brad's many steps XXth to of this level work about our peers. with echo preserve We loans of took saw with working early than through perhaps in Eric. a deferred customers Thanks, period of cash, June our

credit, the in XX-day have may was needed those that Mayo for an took close was a due the was customers it for and deferral COVID-XX. second another to deferred XXth, we commercial inherent at deferrals not these days, during weakness XX not totaling ensure though. loans at loans the as myself typically review implications from provide specific came total That June additional summer, on that did $XXX it to a Of and deferral Craig up deferral million. However, to look

the report at most X%. part, future concerns in As periods. show quarter, will deferrals But small a I share our may end in of result, now indicated. in Brad of that the the the non-performers a one-off we level be about up optimism There for

plans of customers Our in have they highest by adjusting business are level changing the profit some to operating and customers at and cases, responded our environment approaches, have experienced. and the performance their

there deferral the operating and and to would are specific programs of the While X little continued with like success transitioning uncertainty is majority of spend in pleased aviation. quarter, the time on environment, out our of during I hotel a the we portfolios, customers

approximately portfolio. the continue portfolios of overall comprise XX% hotel Our to

of businesses they hoteliers perform As an discussed uncertain positioning themselves Slide book capacity is environment. managed cycles economic and to continue to shrink and the proven proactively conserve to weather comprised to on their experienced cost with changing XX, our cash, in have

best The continued portfolio aerospace themselves of capacity with will As their than in seen of to at approximately we management have non-performing underlying their September The a portfolio, XXth. closely merger managed tied to to Manufacturing teams serve which in hotel proactively success. to the the assets. purchased at our loan, of businesses comprised borrowers work components overall operators businesses operations industry. performance. with of and these for $X continue today, of million to various directly consist proven bank manufacturing Management of for continued X the position have to less each the X% was diversified position relationships airline transition

the work best the airline with the this to borrowers industry ensure our pandemic, of businesses However, proactively to risk and flux remains to result the in as Management remains. will the due and closely the portfolio impact for monitor continue both bank.

non-performing million, contracted with to and a the shared X $XX.X from can weeks total million we the million in credit. totaled national attributed next and in $XX.X settle minor credit While but to few to loss, for $X.X it third This has be sell been show a already slight in assets currently uptick reserved quarter. should

were excluding Excluding as assets estate and to to this relationship, end $XX.X quarter we non-performing trending continue Other positively compared real quarter down responsibly linked XXth. is June million total at as owned when arise assets branches added third other as face issues. sell different quarter. the that our were possibly issues borrowers will OREO various in that There COVID-XX-related to closed in be credit

are adequate, believe and teams our our are we resources However, focused.

led they teams our arise. closely by our monitor Mayo forward, support credit As Brad? performance to and within continue are work special as and through seasoned proactively Craig and bank we move to the customers. continue assets the and issues The prepared portfolio will team management to

Brad Elliott

We our closing throughout did this our efficiencies hear the and by banking our enrollments, the during get I third with branch from branch for XXXX, customers. and period industry-leading from branches our to for goals online been X technology strategic Usage by mobile seen we the platform. throughout in critical online quality branch-light asked base of branches of channels company efficiencies. grew continued cost In knew they evaluating log-ins new second We've utilization to the have quarter. payments our that our year. engagement deposit in about quarter, would frequently One investors network. grow and are in the this now to grow has upgrade year and close implemented permanently and continue my for of mobile elevate May previously peers our customers' grow the having We a experience proved our and XXXX. of

to our We performance will perform branches and profitability review have of understand done a always continual and this.

end our our of This by our our to quality the have a XX% seen not do opened to a new XXXX. We from also delighted a through our branch and with utilization consumer not be and in will that the markets XXXX third is DDA will hold funds. in accounts and At we've of defending steady customer we at We in the critical our meaningful DDA serve. DDA period progress are we PPP in of consumer net the goal quarter, I'm -- X,XXX we reassuring increased anticipate affected community deposits consumer multi-channel made deposits, markets. branch in compared strategic the X,XXX by change there to had in the which XXXX average year-to-date key experience. growing net same strategy XXXX. The balance

Eric Newell

We quarter continued of from $XXX,XXX Expanding from in count on have to normalize linked second improved noteworthy million third increase an card totaling a from charges $X.X in fees debit service increase to quarter the earlier XX% third million the in the million Brad's income quarter fees in theme, period, in quarter. quarter. quarter. to card and from the $X.X increase Also transaction income entirely the from third higher a of linked corresponding experienced in debit level we fees. in $X.X the second the periods, is NSF experienced overdraft in XX%

Brad Elliott

increasing by on total Another revenue fee work of mix is strategic the we goal to revenue. improving continue to income

and doubled as by our We unit periods. our from of and Gaylyn and continue trust contribution under the management from in clients clients. Craig we to to new as Malan, as opportunity and treasury made meaningful led to progress area since and expect income areas we ask Glenn I McGregor Craig? in become We've assets commercial of more our our would such wealth emphasize wealth management the is have AUM discuss income pipeline. trust fee grow I XXXX. pipeline future to encouraging, The Anderson, management, President,

Craig Anderson

and Thanks, pipelines. Brad. loan growth on update I want you to

loan $XX balances in a our the have we seen the of more throughout in experienced quarter summer, so September. we build August third While decline pipelines million, and in approximately

growth fourth that $XXX a the and million translates with loans with yield a hopeful the second X.XX% weighted and compared we X.XX%. new third XXXX. pull-through to early loan non-PPP originated loan million In quarter the originated are of of in $XX of into in of quarter, improves yield quarter We

borrowers approved prospective the million with the Main and XX and looking at the are lender and approximately internally opportunity We Street approved looking and been are last $XXX Federal over an We we new active of the Federal have Reserve. the deals. loans, Boston Reserve closed working had several several of borrowers with months. To-date, we have have in at

of XX% to These sold income are the bring also Federal reminder, a non-interest-bearing Street large and deposits. As fee originations Lending loans treasury Main Brad? any Reserve. substantial

Brad Elliott

Craig. Thanks,

it to personal growth. key been from entrepreneurial Julie have company's deposit And up our key and most happy have processes Jeremy to tellers commercial take once their up now. treasury implementation. customers all, Bank our customers. want to commend leading done Craig to credit our banking Before our we focus and open our focus process for maintain a sales our I Brad a products Allen bankers our continued be our in on us teams to I'd that, quality questions, high open with trust of embodied to the teams. Equity for job and helped charge administration for improvements. a and team it regions. great With Mayo technology asset questions led that's be for has choice the has our improvements again for and throughout spirit markets Anderson lead to our Craig and has competitive on Huber Daniel bankers

Operator

[Operator Instructions].

comes of question D.A. Rulis line the with Jeff Our first from Davidson.

Jeff Rulis

Yes.

kind that Eric, -- million figure or would adjustment of X% of to range? X. the ACL, that -- $XX you imply of a X just -- I I think question a day north Just wanted of in outlined credit

Eric Newell

thinking, That's capital, would all flow probably but through a although that you're we're of little north of not close. what pretty

Brad Elliott

Both There's that. two that, of marked to the part loans and Jeff. will other back parts the in flow

get how to that's So you it.

Eric Newell

Day X adjustment.

Brad Elliott

Yes, the X day adjustment.

Jeff Rulis

enough. Fair

quarters, think Greg, couple 'XX you go added. I the to we SNC just, was little outlined peers? as And Okay. chunkier expected loss given on a expectation the non-accrual industry, into higher to of I of over next guess, be that become balance the heavier credit that pay the than hold in expected for off, or current those reside a any year credits what's you

Greg Kossover

interesting Jeff. an it's question, Well,

X/XX, has way pleasantly we're the that First, I industry, us. think that in the up surprised certainly at it credit quality for the held hasn't that

We had aren't on They about huge want sitting right negative to we was SNC trends The that. talking some that and really the seeing now. particular risk concerns, litigation COVID-related. of not you're didn't take

so. immediate So to We us closely. been don't will and been borrowers. in They've that are credits for in Obviously, capital. week today. next working it industries, rid it sale in had It's chunkier we've some we're the our any our of other come negotiated very and of got get we causing already concern But off see come aviation with or lodging tell off. you, like to watching will here of we I chose several but mentioned access the to

really that us and of good capital, gone have their which and speaks out feel and positively they Some organizations. procured makes

that, have classifications obviously a were several But out borrowers. and anybody we And what's that consistent. And we've bankers that years tried -- fourth the past of get see pretty level with heavy the ago, don't want to calls, the things can't a bank. in mentioned happen way and credit X from are pretty performing in the and Right QX. assets tried quarters Brad know us out to. in some of way the other bank credits so with strong we quarter earlier I on the that as I don't today migration strong successful now, and get wasn't and left team we are or of we QX the us to credit, of nationwide to I going them which all we'll and predict not

Jeff Rulis

the, imminent if knock base you're enough. call you credit, like it, and you're sound a that from off million -- with this balance seeking SNC doesn't fall with -- concerns $XX while It resolution like no the fair out Okay. sounds of comfortable

ex-PPP that both level? Okay. the I'd core Eric, puts the comments to on with as on what's just Jumping outlined And impact, to securities the some manage the the core the your of FHLB takes of expectation borrowings, you I and guess the sub-debt. margin. kind and margin, but that you there But balance it? touch

Eric Newell

you X probably income Yes, we're going Jeff, effect at our another quarter as we're when to see for X thinking average probably the as points. balance, next the well compression points PPP of the looking exclude basis from thinking expectation of we're to basis

seeing in in this the our bit. the at the But benefits interest-bearing increase decline an offset that -- quarter. sub-debt saw of asset again, then we're say Some seeing we're asset a the the is similar of will on deposits we coming the going sub-debt and X FHLB. deposits That And a probably earning liabilities. effect yields for side, the benefit the effect million full time is time having that total PPP due in cost terms to like the months. non-PPP, to earning of of the or down in full $XX of increasing have see from a the little still We'll

Jeff Rulis

the that, 'XX, sort as a some? And margin, and margin the normalizes if roll sub-debt of 'XX, thought is guess that to a it into in puts more so it's normalizes, granted of of the we sort occur, outlook sort then the lot I on sounds of settling still impact there if takes of but

Eric Newell

think, seeing of our that we might see been assets. to And that will quarter the originating hopeful well think that. continue our continue think as to asset We be of loans yields acceleration where the you're if close We that -- look be be little composition the we'll XXXX NIM you'll moving fourth non-interest-bearing excluding yield we an couple earning But fees we'll investment see in loans helpful. with Big GAAP expectation forgiven. of we total or into yield that, see deposits, noise in decline loan you've be portfolio We're we're picture, to to hopeful first effect a seen pretty of mix in able yields loans, the PPP of earning on see as And the side. cost hopeful selective but side, pretty earning going to will as growth, impact quarters on some the those have we've defend to-date right. that into see that in lumpy. on of our the cause loans improvement might we're Jeff, been the effects the the offset that excluding our I -- I securities. asset, of that mix by so And dealing our have see are Yes. to not have again, the I as on that can unfavorable interest-bearing adverse just that portfolio get the of to is. mix give pretty because decline. some of little, we be to might the The increase there, would continue we're or that liabilities And but -- loan stability you our to able attractive a we'll

Brad Elliott

hard to quarter, lot working Jeff, fourth out. out could the a there's want but move have we now that Greg and Craig that because I that We thing and on X non-performing back in assets happen to moving between so sure several circle actually can't are on, then. can commit Mayo

those, hard there's lot and that you happen. as making things So turn. with they parts a But they're there really of twist working some in moving know, on

Operator

you. Thank

question from of the comes next line Perito KBW. with Our Michael

is line open. Your

Michael Perito

questions in just me. a maybe discipline a some guys or pretty mean, to branches thinking I expand as of if you franchise you thoughts the commented on Brad, of you here what just as to have or there some moving couple today, it's kind A there on bit levers, for growth had, -- the are levers like conversation well. of off not expense remarks. what of forward? is you branches? to your being obviously, of needs One, margin but pressure protect prepared cost the still would mean, I about you you profitability transitioning core structure kind cost there But margins seem be strong think it to Can have with protect today, around Or trying limit we challenge. guys

Brad Elliott

Yes. I X the vigilant working And we're to to it, focus -- is mean that, got non-interest on continue increasing Michael. hard our ratio. on stay other really income to we the is prongs there's other to on expense

-- yes, control, salary but expense number control, we've laser-focused on So been FTEs. of

that continuing to every have. department So we're we from that look at

Michael Perito

was more core related. you on the of thoughts which specific quarter think any on And and accounting the of third first that a run bit little drop last But kind hold in $XX this you are near-term million quarter, mean, the kind expense I had of hopeful rate rate in here? I to you had run a basis? on

Brad Elliott

a quarter the better third we goodwill than that benefit little to would us. rate like quarter But first would run look I in a NIE a the fourth expect go Yes. probably things even the and quarter. that we're see benefit wouldn't I going wouldn't in though, quarter as a and there maybe happening back a to I have But I second that quarter where rate, some it impairment. were actually to think the the was on that. little run towards because bit

Michael Perito

of and X to the imagine Brad, half which Any think bit at of million see the expanded maybe environmental, there in pickup critical I last a the was or think, thoughts expansion quarters guys side, little growth Okay. the partly on range you more the And year, I areas that's outlook fee the drop-off most X of for sustainable? of but you were nice XXXX, then, there I X mean, and that saw third $X.X on least kind in of are in quarter. the try a some first

Brad Elliott

Yes.

back. coming are fees deposit retail our So

dropped those increasing really see off, So those month-over-month. but we

back. I think are coming so And those

wealth Our in never I who a It's people department great relationships team job. an great but developing under and the they've for done is running think job enough are fast doing expectation standpoint, the a management bringing assets management. from

continue fee And do so That will to that. increase they to income. continue

corporate cards. out rolled also credit We

And of U.S. implemented one those We customers' in our to those so had referring getting of we're lots honestly, just been competitors, hands. Bank.

we're in. now so back pulling And those

that to incremental month-over-month, as So will that continues increase, think growth nice fee income see as income fee which I from be we'll well.

been we to use We've people the well, we've cash. as as year So interchange And grow use got they then on with. to some the continues initiatives implement good than those. able cards more continue started income that to

see -- continued we anything, can growth I miss we as Eric? well. in area So see Did that

Eric Newell

No.

Michael Perito

just one one. last then And

expectations it bank any try Just position kind investment as industry additional the spending customers. positive not of next -- of several about give I appetite can we're heard the customers over that yet portfolio that's that would think a retail the a of other the liquidity on banks in size there's and lot to we a also us heavier obviously an hearing deposit you mean, quarters here? the balances. of perspective, from of had commercial But from are some impact quarter of these cash, and lots and for I've this

liquidity about Just how portfolio you trend here? might maybe a the near-term thoughts give the investment can quick curious size of if any us and comment

Eric Newell

Yes.

deposit on-balance liquidity a long it's sheet side. think in particularly and you're is probably seen stronger that growth in of now fact the that given time In seeing nice some we've than the terms been consumer liquidity, our I

the about opening As accounts more consumer DDA XX% comments seen on growth there. we've indicated, Brad's -- we've some and side, year-over-year been

that. about happy we're So

portfolio, right you're of portfolio That cash provide us source of been in portfolio capabilities attractive terms It is pledging does redeployment flow for terms public yields. hasn't the into deposits. liquidity. in our the of the investment of a of some some In

that fall is I think point. we're this there would ahead we not level that But So a below. where at want well of to

balance back So the able the hopeful it we're to redeploy us, that comes on side loan cash of we're as sheet. to

Operator

Instructions]. [Operator

of question the McEvoy next Our comes from Stephens. line with Terry

Your line is open.

Terry McEvoy

dividend, limitations or any, past, stock. important clearly, curious, there write-down loss? your goodwill just I'm has in growth an back from part pay related Brad. story. call been you, You impact just EPS the restrictions key M&A a and don't for buying you've and question a been and but are the And of the it, Maybe

Brad Elliott

any foresee that, We quarters. earnings earned that. impact into don't X We Yes. back within from retained

so just being any see we that don't to from impact able coming real And execute on from strategy. our our

the we comments, program. to approved Board buyback As in reimplement our said prepared the

So regulators, -- the to to assuming from we'll that. customary able we'll continue be do approval

plenty have at liquidity company that. to holding We do of the

take to good think we're opportunities, I advantage Terry. so be able a And to of in really position

And at we to so look opportunities. continue

the in couple And actually think I in a got we've so years. as last great -- really we're that about felt today I think feel of good companies the position. I

stuff had got we've we As of years, all pains couple some growing behind that the us. last

great hard a Our to job. team hired has worked from We've new auditor done has job. that's team. incredibly our management team call our a Team great risk done accounting at internal a

working processes our we've got all of so really And well.

today been time. -- we so think our positioned in X position it's I capital think And going long I is we're years to better stronger than we're a ago, and were than

So really have. execute strategies different M&A on feel that organic to bullish, the able I we Terry, being and honestly, about go all

Terry McEvoy

hear. just to it NPAs in restaurants I was that to it quarter, kind noticed And on and more didn't it portfolio disclose think What you well. concerns about million comments great retail, Maybe That's maybe plus charge-offs. prepared X mentioned kind for I stands specifically those talked one-off remarks? the follow-up. some of you Greg, segment the out? as of $XXX think my And portfolios? then you I this of just the Is relates as or updated

Greg Kossover

this, Terry, in is and dining by restaurants, up time, are We strong well. doing don't and food we takeout of this our clearly large capital, a is deck done expect into they're Most And you to that put portfolio didn't We lots of because, companies, Yes. going the in so has have we have stuff. large, well-positioned what we doing the fantastic operators. that with COVID to on it's fast there. that's what all Retail people's mind. fine. aviation speed restaurants dynamics and because And really and on really of highlighted

the equity for just recognizing our their had largest large to major infusion that company, very a One make manufacturers. to into parts credits going continue they're of aircraft

portfolio up with moved very So Terry. as we has is I great working non-accrual. them. well, hotel got product. feel that been in to have good do got We've holding really The acquired about We've merger We've one, great we that. closely We borrowers. mentioned, that hotel a

cash good it in COVID. not on going pretty been We loss We loan. that asset That's into did shape. originate And recognized impacted a is frankly, that by wasn't just the flow. have well-run not because

a We making closely we basis, that borrowers are our working understand on weekly that portfolio. sure with

products urban, said as And the West But borrowers the that that budget, very around. product, East and is roadside the more drive. Coast more best sponsors, and product before, fewer we more Coast, we those some to doing is people fly have as are well

going don't others so I And in those that man, have look problem. with them. say, working are closely to at portfolio myself I that's and and any be a

do we today, so we're to, here credits the well. of also between quite the they're But other and paying industries. that As adjusting couple up of outside guarantor-sponsor are holding support, far, a we operations those sit that have attention

Terry McEvoy

to good That's Thanks, guys. hear.

Brad Elliott

We got Terry. credit Yes, in aerospace. we it, about the most that were worried aerospace, Yes.

Operator

Thank you.

Piper Our from next comes the Sandler. with line Andrew of question Liesch

Your open. is line

Andrew Liesch

how it? to be a it? your And Just curious, questions and use the appetite remarks. by previous on approved could timing follow-up to go The buyback, you through couple just when to that want of quickly regulators

Brad Elliott

and to anticipate would happen quarter able be We that used fourth in in fourth be Yes. quarter. to the the

Andrew Liesch

obviously, in mean, deals. valuation back capital an the in loan Okay. strongest of to then the guys being referenced do stock you come greatest are at? now the any growth expecting there been acquisition transaction or time. some the ex-PPP. And it's to And greatest has Got standpoint, chatter potential looking markets currency But you. right from I you is But

Brad Elliott

conversations been most or changed. ownership driver of and age Yes, has are haven't so of on there The of is Andrew, age chatter, going there these on. management, and those things

And things to as see those things happen. happen, so have some you'll

they need So merger a partner.

think we'll -- we'll to so them in to be help And good those a be opportunities. able with position I

Operator

and no you Call. further Equity I'm for the Ladies a Bancshares Quarter Conference Have questions. showing Third gentlemen, Thank great Thank you. joining day.

Equity Bancshares (EQBK) 21 Oct 202020 Q3 Earnings call transcript