Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Shareholder Meeting (April 2018)
43 slides from Equity Bancshares's shareholder meeting presentation, Apr 25, 2018
Slide 1: 2018 Annual Meeting of Stockholders
E QUITY B ANCSHARES , I NC . 2018 Annual Meeting of Stockholders April 25, 2018—5 pm Wichita Country Club • 8501 E 13 th St N • Wichita, Kansas
Slide 2: Disclaimers: Special Note Concerning Forward-Looking Statements
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: Additional Information for Investors and Shareholders
Additional Information for Investors and Shareholders Additional Information for Investors and Shareholders 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 prop
Slide 4: Official Business: Opening of Meeting
Official Business Opening of Meeting Brad S. Elliott, Chairman and CEO o Presentation of notice of meeting and report on quorum Julie A. Huber, Secretary, EVP & Chief Strategy Officer, Equity Bank o Approval of minutes from last meeting Brad S. Elliott, Chairman/CEO 4
Slide 5: Official Business: Election of Class II Directors
o Official Business Election of three Class II members of the Company’s Board of Directors, to serve until the Company’s 2021 annual meeting of shareholders: Brad S. Elliott Chairman, President and Chief Executive Officer, Equity Bancshares, Inc., Wichita, Kansas Gregory H. Kossover Executive Vice P
Slide 6: Official Business: Ratify Independent Accounting Firm
Official Business To ratify the appointment of Crowe Chizek LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2018. 6
Slide 7: Official Business: Amend 2013 Stock Incentive Plan
\Official Business o To approve an amendment to the Amended and Restated 2013 Stock Incentive Plan to increase the number of shares available for issuance under such plan. 7
Slide 8: Official Business: Other Business
Official Business o To transact such other business as may properly come before the meeting and any adjournment(s) or postponement(s) thereof. o End of Official Business. 8
Slide 9: 2017 Annual Report to Stockholders
Equity Bancshares, Inc. 2017 Annual Report to Stockholders Brad S. Elliott, Chairman and CEO 9
Slide 10: Board of Directors
Board of Directors Members of the Equity Bancshares Board of Directors. Back row, left to right: Dan Bowers, Jerry Maland, Roger Buller, Brad Elliott, Jeff Bloomer, Gary Allerheiligen, Michael Downing. Front row, left to right: Greg Kossover, Greg Gaeddert, John Eck, Randee Koger, Harvey Sorensen, S
Slide 11: Board of Directors
Board of Directors Brad S. Elliott | Chairman, President and Chief Executive Officer, Equity Bancshares, Inc., Wichita, Kansas o Gary C. Allerheiligen | CPA/Consultant, Wichita, Kansas o James L. Berglund | Retired President and CEO, Sunflower Bank, Salina, Kansas o Jeff A. Bloomer | President and C
Slide 12: Senior Leadership
Senior Leadership Brad S. Elliott Chairman & Chief Executive Officer Gregory H. Kossover Chief Financial Officer Wendell L. Bontrager President, Equity Bank Craig L. Anderson Chief Operating Officer 12
Slide 13: Senior Leadership
Senior Leadership Julie A. Huber EVP, Strategic Initiatives Craig P. Mayo Chief Credit Officer Rolando Mayans Chief Risk Officer John M. Blakeney Chief Information Officer Patrick J. Harbert Community Markets President Jennifer A. Johnson Chief Services Officer Elizabeth A. Money Retail Director Pat
Slide 14: Senior Leadership
Senior Leadership o Brad S. Elliott | Chairman and CEO, Equity Bancshares o Greg H. Kossover | Chief Financial Officer, Equity Bancshares o Craig L. Anderson | Chief Operating Officer, Equity Bank o Wendell L. Bontrager| President, Equity Bank o Julie A. Huber | Executive Vice President, Strategic I
Slide 15: Timeline
Timeline 2003 2005 2007 2008 2009 2010 20112012 Equity Bancshares purchases National Bank of Andover, bank begins operating as Equity Bank. EQBK acquires two branches in Wichita from Hillcrest Bank. EQBK merges with Signature Bancshares, Inc. in Spring Hill, Kansas; EQBK opens full-service branch in
Slide 16: Our Footprint
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Slide 17: Tangible Common Book Value & Total Assets
Tangible Common Book Value(1) & Total Assets Total Assets ($millions) $3,500 $3,000 $2,500 $2,000 $1,500$1,000 $500 $0 2013 2014 2015 20162017 Total Assets —CHTCBV per Share $19.00 $17.00 $15.00 $13.00 $11.00 $9.00 $7.00 $5.00 TCBV per Share ($) .80 .60 .40 .20 .00 .80 .60 .40 .20
Slide 18: Diluted EPS & Net Income
Diluted EPS & Net Income Net Income to Common Shareholders ($000s) Net Income to Common Shareholders — —Diluted EPS Diluted EPS ($) [GRAPHIC APPEARS HERE] Return on Tangible Common Equity (%) 12.00% 10.00% 8.00% 9.99% 8.27% 9.66% 6.00% 4.00% 2.00% 0.00% 2013 2014 2015 6.75% 9.81% 2016 2017
Slide 19: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity(1)
Slide 20: Capital and Deposit Mix
Capital 2013 2014 201520162017 â– TCE/TA â– Leverage Ratio HTier 1 RB Ratio 2017 Deposit Mix $2,500 $2,000 Total Deposit Balance ($millions) $367 $551 $1,500 $1,000 $158 $129 $317 $271 $500 $0 $208 $493 â– Non InterestBearing DDA â–¡ Savings & Money Market â–¡ Interest Bearing DDA & NOW â–¡ Time Dep
Slide 21: Total Deposits and Loan Mix
Total Deposits 2017 Loan Mix $2,000 Total Loan Balance ($millions) $1,500 $1,000 $500 $0 $104 $186 $377 $44 $51 $54 $250 $134 $302 $183 $262 $324 $343 $114 $338 $348 $479 $508 $801 2014 2015 Commercial Real Estate â–¡ Residential Real Estate â– Other* 2016 2017 â– C&I â– Real Estate Construction Con
Slide 22: Total Loans
Total Loans 22 $324 $343 $479 $801 $183 $262 $349 $508 $135 $250 $338 $377 $40 $54 $114 $186 $44 $51 $104 $231 $0 $500 $1,000 $1,500 $2,000 2014 2015 2016 2017 Total Loan Balance ($millions) Commercial Real Estate C&I Residential Real Estate Real Estate Construction Other**Consumer, Agricultural Loa
Slide 23: Loan Portfolio
Loan Portfolio Commercial Loans Outstanding by Concentration as of 12/31/2017 â– Non-Owner Occupied RE—22.3% (Commercial Real Estate, Hotels, Shopping Centers) â– Other C&I—20.6% (Note Receivable Financing, Aircraft/Vehicle Services ) â– Owner Occupied RE—12.3% â– Rental CRE—11.5% (Rental Property,
Slide 24: Revenue & Net Interest Margin
24 Revenue & Net Interest Margin 85% 84% 85% 84% 85% 15% 16% 15% 16% 15% 3.87% 3.92% 3.65% 3.30% 3.83% 3.75% 3.51% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% $0 $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2013 2014 2015 2016 2017 Net Interest Margin (%) Total Revenue* ($000s) Net Interest Incom
Slide 25: Efficiency Ratio & Noninterest Expense/Avg. Assets
25 Efficiency Ratio(1) & Noninterest Expense/Avg. Assets 72.3% 72.7% 66.9% 66.7% 61.4% 2.99% 3.08% 2.81% 2.74% 2.74% 1.50% 1.70% 1.90% 2.10% 2.30% 2.50% 2.70% 2.90% 3.10% 3.30% 54.0% 56.0% 58.0% 60.0% 62.0% 64.0% 66.0% 68.0% 70.0% 72.0% 74.0% 2013 2014 2015 2016 2017 Noninterest Exp. / Avg. Assets (
Slide 26: Equity Bancshares — About Us
Equity Bancshares — About Us Recent Price(1) $39.55 Median Consensus Price Target $46.00 Tangible Book Value per Share(4) $18.22 Price to 2018 Consensus Earnings(1)(2) 14.07x Price to Tangible Book Value Per Share(1)(4) 2.17x Q1 2018 Diluted Earnings Per Share (EPS) $0.58 2018 EPS Consensus(2) $2.81
Slide 27: 2017 Highlights
27 2017 Highlights •Announced upcoming mergers with Kansas Bank Corporation of Liberal, Kansas, parent of First National Bank of Liberal/Hugoton and Adams Dairy Bancshares, Inc. of Blue Springs, Missouri, parent company of Adams Dairy Bank. •Pre-tax income growth ahead of Tax Cuts And Jobs Act •Tota
Slide 28: Q1 2018
Q1 2018
Slide 29: Strategic Positioning
Strategic Positioning Prepared for upcoming mergers with Kansas Bank Corporation of Liberal, Kansas, parent of First National Bank of Liberal/Hugoton and Adams Dairy Bancshares, Inc. of Blue Springs, Missouri, parent company of Adams Dairy Bank Continued EPS growth Addition of Chief Operating Office
Slide 30: Asset Quality
Asset Quality Nonperforming Assets $- â– Nonaccruals BOREO BTDR & 90+ PD ($ in millions) 0.12% 0.43% 0.12% 0.06% 0.02% 2014 2015 2016 2017 2018 YTD NCO in $ ($ in millions) Classified Assets to Total Regulatory Capital Commercial Loans Outstanding by Concentrations Classified Assets / Equity Bank To
Slide 31: Capital Position Over Time
7.11% 8.37% 9.13% 8.42% 8.70% 9.62% 9.47% 11.77% 10.33% 9.45% 13.16% 13.85% 14.25% 12.17% 12.41% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 2014 2015 2016 2017 2018 YTD TCE/TA Leverage Ratio Tier 1 RB Ratio * * Capital Position Over Time 31 * Paid off Series C preferred stock in Janua
Slide 32: Loan Portfolio Composition & Growth
Loan Portfolio Composition & Growth Loan Composition Loan Composition ($ in 000s) 2014 2015 2016 2017 Q1 2018 Commercial Real Estate $364,096 $397,017 $593,108 $987,661 $974,728 Commercial 183,100 262,032 348,465 507,519 526,129 Agricultural Real Estate 17,083 18,180 \38,331 \\86,486 92,748 Total\\C
Slide 33: Footprint & Targets
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Slide 34: Digital Growth: Website Visitors and Online Banking Users
Source: Equity Bank Internal Marketing Reports 21,456 EquityBank.com Unique Website Visitors January 2013 1 • 12,468 Online Banking Users January 2013 205,479 EquityBank.com Unique Website Visitors
Slide 35: Social Media, Website and Online Banking Growth
January 2013 March 31, 2018 January 2013 January 2013 March 31, 2018 March 31, 2018 298 Facebook Fans 10,696 Social Media Fans 21,456 EquityBank.com Unique Website Visitors 205,479 EquityBank.com Unique Website Visitors 12,468 Online Banking Users 42,334 Online Banking Users Source: Equity Bank Inte
Slide 36: Digital Growth
Digital Growth Source: Equity Bank Internal Reports. Digital Conversion Percentage: Percent of Total Unique Website Visitors who applied for account, contacted Equity via web, applied for job, enrolled in online banking, downloaded pdf. Digital k Conversic Percentac L 5 ?R° Fonline^l Checking Accoun
Slide 37: Community Focus
Community Focus 254 Local Causes Supported $264K Sponsorships and Donations $10,700 “Official Bank of Coffee” Source: Equity Bank Internal Reports. Through March 31, 2018 35
Slide 38: Questions and Closing Remarks
Equity Bancshares, Inc. Questions Closing Remarks Brad S. Elliott, Chairman and CEO
Slide 39: Thank you for attending
Equity Bancshares, Inc. Thank you for taking the time to attend our Stockholder Meeting. Your support of Equity Bancshares, Inc. is greatly appreciated.
Slide 40: Non-GAAP Reconciliations
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 41: TCE to TA and Tangible Book Value per Share
CE 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) Total stockholders’ equity Less: preferred stock Less: goodwill Less: core deposit intangibles, net Less: mortgage servicing asset, net Less:
Slide 42: ROATCE and Efficiency Ratio
ROATCE and Efficiency Ratio Non-GAAP Financial Measures, continued (Unaudited) As of and for the years ended (Dollars in thousands, except per share data) Total average stockholders’ equity Less: average intangible assets and preferred stock March 31, 2018 December 31, 2017 December 31, 2016 Decembe
Slide 43: Thank you
E QUITY B ANCSHARES , I NC . Thank you