Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q3 2019 Earnings Presentation
33 slides from Equity Bancshares's earnings presentation, Oct 21, 2019
Slide 1: Third Quarter 2019 Results Presentation
Third Quarter 2019 Results Presentation October 22, 2019 Exhibit 99.2
Slide 2: Disclaimers
Disclaimers Special Note Concerning Forward-Looking Statements This investor presentation 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 statem
Slide 3: About EQBK
NASDAQ: EQBK 15.4 million shares outstanding / $411.5 million (1) $4.07 billion Market Cap 66.1% Exchange / Ticker Total Assets Efficiency Ratio (2) Locations FTEs Loan Portfolio 52 branches in Kansas, Missouri, Arkansas and Oklahoma 606 46% of loans in commercial real estate, 20% in residential rea
Slide 4: Equity Bancshares – Share Price & Consensus Estimates
Equity Bancshares – Share Price & Consensus Estimates As of October 17, 2019 market closing. Estimates as of October 17, 2019. Based on 15,441,384 shares outstanding as of October 17, 2019. Non-GAAP financial measures. See the non-GAAP reconciliation at the end of this presentation. Share price data
Slide 5: Franchise Overview
Franchise Overview DOWNTOWN TOPEKA bepebespr’ rorexn: tren sneer eT was “Wontar ent cae amr TOPEKA ees ras suai ;oounerom ret KANSAS CITY iccmmswce WESTERN KS eoeats, wea Wamensoure sours vow Nosten wmoson sna wear ‘nest Wc wansnivoonnTown viansaw ROMAN Les WESTERN MO SOUTHWEST KANSAS LIBERAL LINCOL
Slide 6: Company history and capital activity timeline
Note: Gray shading indicates capital activity. * Data as of 12/31/2007. ** Data as of 12/31/2011. *** Data as of 12/31/2016. ****As reported for the year to date period ended 9/30/2019. 2009 $8.8MM of TARP issued Opened 2 branches in Overland Park, KS 2014 Repurchased 1.3mm shares Refinanced TARP wi
Slide 7: 2019 Third Quarter Highlights
Diluted earnings per share of $0.66 for 3Q 2019 Net income to common stockholders was $10.4 million Net income, adjusted for credit received from the FDIC, is $10.0 million, or $0.63 per share Completed repurchase of 143,210 shares of EQBK common stock. Remaining shares authorized to be repurchased
Slide 8: Operating Performance Trends – Year over Year
Operating Performance Trends – Year over Year Diluted EPS and Net Income to Common Stockholders Return on Average Tangible Common Equity(1,2) Efficiency Ratio(1,2) & Non-Interest Expense / Average Assets Income(2) and Net Interest Margin Non-GAAP financial measure. See the non-GAAP reconciliation at
Slide 9: Operating Performance Trends – Quarter over Quarter
Operating Performance Trends – Quarter over Quarter Diluted EPS and Net Income to Common Stockholders Return on Average Tangible Common Equity(1,2) Efficiency Ratio(1,2) & Non-Interest Expense / Average Assets Income(2) and Net Interest Margin Non-GAAP financial measure. See the non-GAAP reconciliat
Slide 10: Earnings Per Share
Earnings Per Share Does not include gains on sales and settlement of securities. Does not include merger expenses or FDIC assessment credit received. (1)
Slide 11: Interest Income & Net Interest Margin
Interest Income & Net Interest Margin Performance Notes: Maintained quarter over quarter margin in a declining interest environment. Continued growth in interest income, exclusive of accretion.
Slide 12: Non-Interest Income
Non-Interest Income Does not include gains on sales and settlement of securities. Performance Notes: Second consecutive quarter of growth in customer services and debit card processing. Second consecutive quarter of greater than 45% growth in mortgage banking revenue generation.
Slide 13: Non-Interest Expense
Non-Interest Expense Performance Notes: Second consecutive quarter of decreasing non-interest expense overall. The reductions were realized even as we work to develop new business lines. Benefitted from the credit received on our FDIC assessments as disclosed in our press release. Does not include m
Slide 14: Tangible Book Value
Tangible Book Value Tangible Book Value per Share(1) and Asset Growth TBV CAGR 2015 - 3Q 2019: 5.77% Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 15: Capital Position Over Time
Capital Position Over Time IPO * Paid off Series C preferred stock in January 2016 Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. (1)
Slide 16: Total Loans by Purpose
Total Loans by Purpose(1) Gross Total Loans ($000s) $2,117,270 $2,575,408 $960,355 $1,383,605 Year-to-Date Loan Yield 5.31% 4.98% 5.43% 5.74% $2,600,924 5.74% For financial statement reporting, management considers other factors in addition to purpose when assessing risk and identifying reporting cl
Slide 17: Metro Market Organic Loan & Core Deposit Growth
Metro Market Organic Loan & Bank-Wide Core Organic Deposit Growth Metro Market Organic Loan Growth Since 12/31/2015 Bank-Wide Core(1) Organic Deposit Growth Since 12/31/2015 Defined as Equity signature deposits, including checking, savings, and money market accounts.
Slide 18: Asset Quality – Year over Year
Asset Quality – Year over Year Nonperforming Assets 0.89% NPAs / Assets 1.43% Net Charge-Offs (NCO)/ Average Loans $3.50 $1.19 NCO in $ ($ in millions) Nonaccrual Detail Classified Assets to Total Regulatory Capital $0.89 1.52% 1.40% $10.88 68.5% 75.9% Purchased impaired loans classified as non-accr
Slide 19: Asset Quality – Quarter over Quarter
Asset Quality – Quarter over Quarter Nonperforming Assets 1.28% NPAs / Assets 0.98% Net Charge-Offs (NCO)/ Average Loans $0.36 $0.31 NCO in $ ($ in millions) Nonaccrual Detail Classified Assets to Total Regulatory Capital $0.76 1.91% 1.40% $0.58 57.5% 59.9% Purchased impaired loans classified as non
Slide 20: Total Deposits
Total Deposits Total ($000s) $2,382,013 $3,123,447 $1,215,914 $1,630,451 Year-to-Date Cost of Deposits* 0.48% 0.56% 0.68% 0.96% * Includes interest and non-interest bearing deposits. $3,106,929 1.36%
Slide 21: Footprint & Target
Footprint & Target There are over 500 banks with deposits less than $750MM in our operating market.
Slide 22: Appendix
Appendix
Slide 23: Executive Leadership
CRAIG ANDERSON Chief Operating Officer Joined Equity Bank in March 2018 Served as President of UMBF Commercial Banking More than 31 years of banking experience Executive Leadership BRAD ELLIOTT Chairman & CEO Founded Equity Bank in 2002 Served as Regional President of Sunflower Bank prior to forming
Slide 24: Experienced Senior Leadership Team
Team Member Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service 16 24 Julie Huber EVP, Strategic Initiatives 16 25 Craig Mayo EVP, Chief Credit Officer 1 35 John Blakeney EVP, Chief Information Officer 2 31 Gaylyn McGregor EVP, Director of Trust and Wealth M
Slide 25: Diverse Market Segments
Diverse Market Segments 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 r
Slide 26: Market Data
Market Data Boeing Cargill Meat Solutions Cessna Aircraft Co. Spirit AeroSystems Inc. Blue Cross and Blue Shield of Kansas and Oklahoma Hill’s Pet Nutrition Goodyear Tire Co. Jostens Publishing Hallmark Cards, Inc. H&R Block Honeywell Sprint Garmin Teva DST Systems Inc. Whiteman Airforce Base Stahl
Slide 27: Selected Income Statement Data
Selected Income Statement Data
Slide 28: Selected Balance Sheet Data
Selected Balance Sheet Data Demonstrating balance sheet strength Includes interest-bearing deposits in other banks. (2) Includes Federal Reserve Bank and Federal Home Loan Bank stock. Selected Balance Sheet Data ($000s) ASSETS 12/31/14 09/30/19 12/31/18 12/31/17 12/31/16 12/31/15 Cash and cash equiv
Slide 29: Capitalization
Capitalization (1) Total common equity less goodwill and intangibles divided by shares outstanding as of period end. Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Maintaining a strong regulatory capital position Ratio 12/31/14 09/30/19 12/31/18 12/31/17
Slide 30: Non-GAAP reconciliations overview
The subsequent tables present non-GAAP reconciliations of the following calculations: Tangible Common Equity (TCE) to Tangible Assets (TA) Ratio Tangible Book Value per Common Share Return on Average Tangible Common Equity (ROATCE) Efficiency Ratio
Slide 31: TCE to TA and Tangible Book Value per Share
TCE to TA and Tangible Book Value per Share Non-GAAP Financial Measures (Unaudited) As of and for the years ended (Dollars in thousands, except per share data) As of September 30, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2012 Total stockholders’ equity
Slide 32: ROATCE and Efficiency Ratio
ROATCE and Efficiency Ratio Non-GAAP Financial Measures (Unaudited) Years Ended December 31, (Dollars in thousands, except per share data) Mar. 2018 2017 2016 2015 Total stockholders’ equity $,381,487 $,374,144 $,257,964 $,167,232 Less: preferred stock 0 0 0 16,372 Less: goodwill ,103,412 ,104,907 5
Slide 33: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com