Brett Robinson

Brett Robinson from Holt Group asked about Equity Bancshares' perspective on loan payoffs, specifically how recent movements in the intermediate to longer-end yield curve might influence a slowing or cessation of these payoffs. He also sought an update on Equity Bancshares' M&A outlook, inquiring about how the changing landscape might affect their strategy regarding pricing, earn-back periods, and the potential to acquire larger or more profitable banks.

Answer

Bank CEO Rick Sems indicated that minor rate movements are unlikely to significantly impact payoffs, as they are primarily driven by project completions or asset sales. Chairman and CEO Brett Elliott added that a substantial portion of the current quarter's payoffs was due to a unique, non-recurring situation with a specific relationship. CFO Chris Navratil noted that declining rates and improving consumer sentiment could lead to increased prepayments in consumer real estate with low coupons, which would positively impact margin. Brett Elliott stated that the M&A environment remains consistent, with numerous opportunities. Equity Bancshares continues to be selective, prioritizing strategic fit, integration, timing, and adherence to their earn-back model and overall strategy.

Brett Robinson sought Brett Elliott's perspective on the M&A outlook for the next year, considering the changing landscape and its implications for strategy, pricing, earn-back periods, and the potential to acquire larger, more profitable banks.

Answer

Brett Elliott, Chairman and CEO, stated that the M&A environment remains consistent with the past year, offering numerous opportunities and ongoing conversations. He emphasized Equity Bancshares' selective approach, ensuring that any potential transaction aligns with their earn-back model and strategic objectives.