Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q1 2024 Earnings Presentation
26 slides from Equity Bancshares's earnings presentation, Apr 17, 2024
Slide 1: Earnings Presentation 1st Quarter 2024
Exhibit 99.2 Earnings Presentation 1ST Quarter 2024 April 16, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This 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 statements reflect the current views of the manage
Slide 3: Company Overview
Equity Bancshares, Inc.| NYSE: EQBK Company Overview $5.2B $3.5B $4.4B $531.5M Assets Loans Deposits Market Cap 1 7.45% 11.14% 14.71% WICHITA TCE 2 CET 1 TRBC Headquarters 3 Strategic Execution Of Acquisitions B AN K OF KIR KVILL E M ER GER $5.2B Close d Dur in g Q1 2024 27.5% Compound Annual Growth
Slide 4: Leadership Team
Leadership Team Brad Elliott Rick Sems Chairman & CEO President, Equity Bank Years in Banking: 35 Years in Banking: 24 Founded Equity Bank in 2002 Joined Equity Bank as President in May 2023. Prior to joining, Rick 2018 EY Entrepreneur of the Year National Finalist served as Chief Banking Officer of
Slide 5: Our Value Proposition
Our Value Proposition Organic Growth Our guiding principles Strategic Mergers & Acquisitions and commitment to our 5 entrepreneurial spirit Disciplined Credit Standards are part of our longstanding framework for delivering Effective Balance Sheet & Capital Management shareholder value EPS & Tangible
Slide 6: Tangible Book Value Per Share
Tangible Book Value Per Share 1 7.37% Compound Annual Growth Rate $28.38 $28.75 $28.80 Ex. AOCI $25.11 $25.22 $25.05 $24.87 $24.32 $22.98 $19.03 $21.35 6 $20.39 $17.50 $16.60 $18.73 $20.39 $16.02 $17.29 $16.37 $15.74 AOCI Impact 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1) Tangible Book Valu
Slide 7: 1st Quarter 2024 Financial Highlights
1st Quarter 2024 | Financial Highlights HIGHLIGHTS 1 EARNINGS & PROFITABILITY 1 , 2 Q1 24 Q4 23 Q1 23 $16.1M Earnings Per Share Tangible Book Value Per Share $1.03 $25.10 $0.77 $25.37 $0.77 $22.96 Adjusted Operating Net Income Net Income $16.1M $11.9M $12.3M Net Interest Margin 3.75% 3.49% 3.44% Eff
Slide 8: Net Income
Net Income Primary Drivers Net Interest Income Noninterest Income Noninterest Expense Net interest income totaled $44.2 million in the first Noninterest income totaled $11.7 million in the first Noninterest expenses totaled $37.2 million in the quarter, up $4.7 million from the fourth quarter, quart
Slide 9: Performance Metrics
Performance Metrics Adjusted Return On Tangible Common Equity 1 Adjusted Return on Average Assets 1 16.97% 1.25% 14.87% 14.71% 14.19% 13.76% 1.00% 0.99% 0.97% 0.97% 9 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Efficiency Ratio 2 TCE / TA Excluding AOCI 2 74.35% 9
Slide 10: Profitability
Profitability Revenue Composition 1 Profitability Ratios 1 Noninterest Income / Operating Revenue Net Interest Income Noninterest Income 20.92% 17.97% 17.34% 17.56% 15.44% $11,668 $8,736 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $8,568 $8,272 $7,204 Noninterest Income / AA 10 0.91% 0.70% 0.69% 0.55% 0
Slide 11: Net Interest Income
Net Interest Income Primary Drivers Deposits Cost of Deposits Loan Yield Rate Protection Repositioning Excess Liquidity Noninterest-bearing Cost of total deposits Loan yield increased Proactive effort to The bank received a Excess on balance deposits constitute increased 18bps and 91bps year-over-ye
Slide 12: Strong Core Deposit Franchise
Strong Core Deposit Franchise Core Deposits 1 / Total Deposits Non-Interest Core Deposits Core Deposits / Total Deposits Interest Bearing DDA Bearing DDA 22.5% 25.3% 85.1% 86.6% 86.2% 85.6% 83.4% Time Deposits < Current 100k Deposit 4.2% Composition $3,575 $3,601 $3,535 $3,574 $3,741 Time Deposits >
Slide 13: Yield / Cost Components
Yield / Cost Components Cost Analysis Cumulative Betas Cost of Deposits Cost of IB Deposits Q1 Q2 Q3 Q4 Q1 2023 2023 2023 2023 2024 Fed Rate Change Since Beginning of 4.43% 4.91% 5.18% 5.25% 5.25% Rate Cycle – Q4 2021 2.58% 2.77% 2.40% 2.14% 1.73% Loans 41% 47% 49% 50% 52% 1.98% 2.16% 1.64% 1.84% 1.
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Mix Total Loans & Yield on Loans 6.62% 6.85% 5.00% 4.77% 4.98% Commercial $3.31B $3.33B $3.48B $3.16B and $2.59B industria l 18% Com m er cial 2020 2021 2022 2023 Q1 2024 14 real estate 42% Resident ia l real estate 17% Total Classified Assets Real estate $38.1M const
Slide 15: Asset Quality Trends - Quarterly
Asset Quality Trends - Quarterly Nonperforming Assets 1, 2 Total Reserve Ratio Nonaccruals OREO & Other Repo. Assets NPAs / Assets Allowance for Credit Losses Purchase Discount 0.53% 0.49% 1.40% 1.39% 1.39% 1.35% 1.33% 0.33% 0.31% 0.42% 0.05% 0.05% 0.04% 0.04% 0.05% $1.2 $0.8 $0.3 $0.5 $0.7 1.35% 1.
Slide 16: Asset Quality Trends – Annual
Asset Quality Trends – Annual Nonperforming Assets 1, 2 Total Reserve Ratio Nonaccruals OREO & Other Repo. Assets NPAs / Assets Allowance for Credit Losses Purchase Discount 1.36% 1.98% 1.28% 1.65% 0.68% 1.43% $10.8 $36.4 1.35% 1.33% 0.53% 0.49% 0.12% 0.37% 0.05% 0.04% 0.05% $1.2 $0.8 $0.6 1.53% $43
Slide 17: Tangible Book Value
Tangible Book Value DECREASED $0.27 IN Q1 2024 TO $25.10 17 Q4 Q1 Q1 1) Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation.
Slide 18: Capital Management
Capital Management THE COMPANY’S CAPITAL RATIOS ARE WELL CAPITALIZED LEVELS AS OF 3/31/2024 EQBK Well Capitalized CAPITAL PRIORITIES Maintain well capitalized regulatory levels 14.71% Capacity for organic growth 11.73% 11.14% 10.50% 8.50% Merger & acquisitions 9.10% 7.00% 7.45% Dividend payout ratio
Slide 19: Outlook on Key Business Drivers
Outlook on Key Business Drivers 1 ST QUARTER 2024 FORWARD LOOKING RESULTS ESTIMATES 2 ND QUARTER 2024 FY 2024E 1 Avg. $4,254M $4,325 – 4,425M $4,350 – 4,425M $4,350 - 4,425M Deposits Avg. $3,452M $3,475 - 3,550M $3,500 - 3,550M $3,550 - 3,650M Loans Avg. $4,742M $4,775 - 4,875M $4,800 - 4,875M $4,87
Slide 20: Focus Variables for Outlook & Forecast
Focus Variables for Outlook & Forecast OUR OUTLOOK REQUIRES CLARITY AROUND CERTAIN VARIABLES, INCLUDING: ECONOMIC CUSTOMER COST OF COMPETITIVE INVESTMENT POLITICAL ENVIRONMENT NEEDS FUNDING MARKET OPPORTUNITIES ENVIRONMENT Business activity Directly related to Impacts rates on our Providing customer
Slide 21: Our Markets
Our Markets Kansas Missouri Market Rank #7 Market Rank #7 Deposits $2.5b Deposits $861m Deposit Market Share 4.06% Deposit Market Share 1.64% 21 Oklahoma Arkansas Market Rank #10 Market Rank #6 Deposits $570m Deposits $350m Deposit Market Share 1.84% Deposit Market Share 3.36% Source: S&P Capital IQ
Slide 22: Non-GAAP Reconciliations
; EQUITY Non-GAAP | ge BANCSHARES, INC. Reconciliations
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF TANGIBLE COMMON EQUITY AND RELATED MEASURES ($ in thousands, except per share data) Quarter Ended March 31, December 31, September 30, June 30, March 31, 2024 2023 2023 2023 2023 Total stockholder's equity $456,776 $452,860 $418,130 $418,435 $425,123 Less: go
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF ROATCE AND EFFICIENCY RATIO ($ in thousands, except per share data) Quarter Ended March 31, December 31, September 30, June 30, March 31, 2024 2023 2023 2023 2023 Total average stockholders' equity $460,244 $423,207 $426,260 $424,862 $420,500 Less: average in
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY ($ in thousands, except per share data) Quarter Ended March 31, December 31, September 30, June 30, March 31, 2024 2023 2023 2023 2023 Net income (loss) allocable to common stockholders 14,068 (28,299) 12,341 11,456
Slide 26: investor.equitybank.com
| EQUITY BANCSHARES, INC. investor.equitybank.com