Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Merger or Acquisition (May 2021)
22 slides from Equity Bancshares's merger presentation, May 17, 2021
Slide 1: Merger with American State Bancshares, Inc.
Merger with American State Bancshares, Inc. May 17, 2021
Slide 2: Disclaimers: Special Note Concerning Forward-Looking Statements
Disclaimers 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 re
Slide 3: Disclaimers: Important Additional Information
Disclaimers Important Additional Information The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction, Equity intends to file with the Securities an
Slide 4: EQBK's Value Proposition
EQBK’s Value Proposition Market Diversification and Strategy for Growth Conservative Credit Culture and Effective Risk Management and Mitigation Robust Funding Capacity, Anchored by a Diverse, Low-Cost Deposit Base Focus on Efficient Performance Throughout our Diversified Business Lines Experienced
Slide 5: Franchise Overview
Franchise Overview © Western KS ‘Kansas City ESSE ttm wer ‘Western MO © Wichita 7 ——. mates || ES eo Kansas Ey MISSOURI © Ozark Mountain —— OKLAHOMA ARKANSAS ‘Tulsa
Slide 6: Equity Bancshares – Company Profile
Equity Bancshares – Company Profile EQBK (Nasdaq ticker) $4.2 Billion Total Assets $443 Million Market Cap (as of 5/14/2021) Deposit franchise: – Kansas (25 branches with $1,653mm in deposits)(1) – Missouri (13 branches with $780mm in deposits)(1) – Oklahoma (10 branches with $521mm in deposits)(1)
Slide 7: Operating Markets and Market Share
6 Source: S&P Market Intelligence. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Equity Bank operates Diverse market segments with economies based on transportation, manufacturing and healthcare Top employers in the region operate in a dive
Slide 8: Experienced Management Team
7 Founded Equity Bank in 2002 2018 EY Entrepreneur of the Year National Finalist 2014 Most Influential CEO, Wichita Business Journal Served as Regional President of Sunflower Bank prior to forming Equity Bank Served as Director of Sales and Marketing for Koch Industries Brad Elliott Chairman & CEO Y
Slide 9: Equity Bancshares history and growth phases
8 2009 $8.8MM of TARP issued Opened 2 branches in Overland Park, KS 2014 Repurchased 1.3mm shares Refinanced TARP with Loan Close/Sell 3 branches and opened branch at Waterfront 2012 First Community Bancshares (FCB) merger $20.4M Capital Raise 2011 Repaid TARP with SBLF Purchase of 4 branches from C
Slide 10: Proven Track Record of Executing on M&A
Proven Track Record of Executing on M&A Since July 2015, EQBK has closed and integrated 9 bank acquisitions First Independence Corp. Community First Bancshares Prairie State Bancshares Eastman National Bancshares Cache Holdings, Inc. Kansas Bank Corporation Adams Dairy Bancshares City Bank & Trust C
Slide 11: Merger with American State Bank & Trust Company (American State Bancshares, Inc.)
Merger with American State Bank & Trust Company (American State Bancshares, Inc.)
Slide 12: Creating Shareholder Value
Creating Shareholder Value 11 Retention of key local management team members Chairman of ASB to join the EQBK board Similar customer approach, credit culture & operating style Comprehensive due diligence, no concentration concerns Structured within EQBK’s proven merger metrics and through a consiste
Slide 13: Compelling Pro Forma Financial Impact
12 Compelling Pro Forma Financial Impact Approximate, expected pro forma metrics based upon modeling (1) As of March 31, 2021 (2) As of expected closing, reflective of modeling estimates through close including the forgiveness of PPP loans Tangible Book Value Impact EPS Accretion Attractive Returns
Slide 14: American State Bank & Trust – Overview
13 Total Assets $ 777,142 Gross Loans 4 78,726 Deposits 6 52,536 Loans / Deposits 73.4 % % Core Deposits(2) 90.7 ROAA 0.58 % ROAE 4.53 Net Interest Margin 3.11 Efficiency Ratio 73.15 NPAs excl. TDRs / Assets 0.49 % NCOs / Average Loans 0.00 Reserves / NPLs (excl. TDRs) 1.48 x Reserves / Loans 1.17 %
Slide 15: Strong Pro Forma Franchise
Branch Desposits in Market Market Share Rank Institution (ST) Count ($000) (%) 1 INTRUST Financial Corp. (KS) 23 4,941,993 25.81 2 Bank of America Corporation (NC) 11 3,252,326 16.98 3 Fidelity Financial Corp. (KS) 14 1,876,120 9.80 4 Emprise Financial Corp. (KS) 24 1,485,049 7.76 5 Commerce Bancsha
Slide 16: Salina, Garden City and Great Bend MSAs
Salina MSA Salina is located at the Junction of I-135 and I-70 and serves as the economic, educational, and logistical hub of central Kansas The Salina MSA enjoys a diverse economy with strengths in the manufacturing, agricultural, educational, aviation, and alternative energy sectors Home to Kansas
Slide 17: Transaction Overview
16 Transaction Overview Source: EQBK Management and ASB Management (1) Based on the spot price for EQBK shares of $29.59 as of April 29, 2021, the date both parties agreed to pricing (2) ASB tangible book value is consolidated and as of March 31, 2021 (3) ASB 2021 estimated net income is based on an
Slide 18: Key Transaction Assumptions
Key Transaction Assumptions 17 Cost Savings One-time Merger Expenses Loan Mark Minimum Equity Core Deposit Intangible Operation and Conversion Identified fully phased-in cost savings of ~$5.8 million Approximately 34% of ASBs operating non-interest expense 50% realized in 2021, 100% realized in 2022
Slide 19: Pro Forma Loan and Deposit Composition
NIB Demand 28% NOW & Other Trans. 10% Savings & MMDA 46% Retail CDs 12% Jumbo CDs 4% NIB Demand 25% NOW & Other Trans. 24% Savings & MMDA 34% Retail CDs 12% Jumbo CDs 5% NIB Demand 27% NOW & Other Trans. 12% Savings & MMDA 44% Retail CDs 12% Jumbo CDs 5% Resi. RE 22% Comm. RE & Multi 38% Const. & La
Slide 20: Benefits to the Combined Stakeholders
19 Benefits to the Combined Stakeholders Shareholders Customers Employees Strategically and financially attractive transaction Successful board and management teams with strong community ties Improved liquidity for ASB shareholders Opportunity for increased shareholder value for both companies Commu
Slide 21: Summary
Summary 20 American State joins Equity franchise allowing for continued growth and development of products and services Strategic acquisition that enhances franchise value through expansion into attractive Kansas markets and is consistent with business plan and shareholder value proposition Integrat
Slide 22: Equity Bancshares, Inc.
a EQUITY BANCSHARES, INC. investor.equitybank.com