Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q1 2017 Earnings Presentation
27 slides from Equity Bancshares's earnings presentation, Apr 20, 2017
Slide 1: Q1 2017 Results Presentation
Q1 2017 Results Presentation April 20, 2017 Exhibit 99.2
Slide 2: Disclaimers
Disclaimers Special Note Concerning 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 ref
Slide 3: Equity Bancshares – About Us
Equity Bancshares – About Us Recent Price (1) 31.09 $ Consensus Price Target (2) 38.50 $ Tangible Book Value Per Share 17.00 $ Price to 2017 consensus earnings (1),(2) 15.70 x Price to Tangible Book Value Per Share (1),(5) 1.83 x Q1 2017 diluted earnings per share (EPS) 0.40 $ 2017 EPS Consensus (2)
Slide 4: About EQBK
NASDAQ: EQBK 12.2 million shares outstanding / $379.4 million (1) $2.40 billion 0.88% / 10.17% Annual Market Cap 61.6% Exchange / Ticker Total Assets ROAA / ROATCE (2) Efficiency Ratio (2) Locations FTEs Loan Portfolio 37 branches in Kansas, Missouri, and Arkansas Approximately 449 41% of loans in c
Slide 5: Footprint and Demographics
Footprint and Demographics Footprint 37 branches in 23 counties across 3 states Strong strategic positioning, with branches along I-70 and I-35 Branches clustered around key areas such as Wichita, Topeka, Kansas City, and Northern Arkansas Total population in current footprint of 2.7 million Median
Slide 6: 2017 First Quarter Highlights
Continued development of our acquisition pipeline and closing and conversion of Prairie State Bancshares Hired Wendell Bontrager as President Renewed and increased our bank stock loan to $30.0 million Total Assets at Mar. 31, 2017 of $2.40 billion; Total Loans of $1.52 billion, year-over-year growth
Slide 7: EPS & ROATCE
EPS & ROATCE(1) Diluted EPS and Net Income to Common Return on Average Tangible Common Equity(1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 8: Revenue & Efficiency Ratio
Revenue & Efficiency Ratio(1) Efficiency Ratio(1) & NIE/Average Assets Income and Margin 85% 84% 85% 84% 15% 16% 15% 16% $48,627 $49,049 $54,626 $62,584 * Excluding gains on sales of securities and acquisition costs. Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this pres
Slide 9: Tangible Common Book Value
Tangible Common Book Value(1) Tangible Common Book Value per Share(1) and Asset Growth 2014: Repurchase 1.3MM shares. Repayment of $15.54MM of FCB TARP with a Bank stock loan. 2015: Acquisition of FFSL. IPO. TCBV CAGR 2012-2016: 9.4% 2016: Paid off SBLF. Restructured term bank stock loan into LOC. C
Slide 10: Capital Position Over Time
Capital Position Over Time $17.2mm Share Repurchase (13.0% of 2013 Tier 1 Common) IPO * Paid off Series C preferred stock in January 2016
Slide 11: Capital Summary and Excess Capital Priorities
Share Buybacks Attractive Acquisitions Common Dividends Capital Summary Excess Capital Priorities Total Capital Composition ($M) as of March 31, 2017 Capital Ratios All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized” Strong relationship with regulators
Slide 12: Loan Portfolio Composition & Growth
Loan Portfolio Composition & Growth Loan Composition Loan Composition 2013 2014 2015 2016 Q1 2017 '12-'16CAGR ($ in 000s) Commercial Real Estate $,341,512 $,364,096 $,397,017 $,593,108 $,615,941 0.1280769898110623 Commercial ,139,365 ,183,100 ,262,032 ,348,465 ,366,648 0.28761139651749623 Agricultur
Slide 13: Asset Quality
Asset Quality Nonperforming Assets 1.80% 1.33% NPAs / Assets 0.89% NCOs / Average Loans $1.44 $0.85 $3.50 NCO in $ ($ in millions) Commercial Loans Outstanding by Concentrations Classified Assets to Total Regulatory Capital CRE = 50% C&I = 50% ($ in millions) Classified Assets / Equity Bank Total Re
Slide 14: Core Deposit Franchise
Core Deposit Franchise Deposit Portfolio Mix Deposit Portfolio Mix Deposit Composition 2013 2014 2015 2016 Q1 2017 '12-'16CAGR ($ in 000s) Time Deposits $,363,210 $,342,160 $,438,612 $,553,158 $,621,824 8.441742464521651E-2 Signature Deposits ,584,109 ,639,017 ,777,302 1,077,293 1,199,266 0.16090558
Slide 15: Footprint & Targets
Footprint & Targets
Slide 16: Appendix
Appendix
Slide 17: Experienced Management Team
Experienced Management Team BRAD ELLIOTT Chairman & CEO Founded Equity Bank in 2002 Served as Regional President of Sunflower Bank prior to forming Equity Bank More than 20 years of banking experience GREG KOSSOVER Chief Financial Officer Has served as CFO since 2013 and as a Board Director since 20
Slide 18: Strategic Planning Team
Strategic Planning Team Team Member Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service 13 22 Julie Huber EVP, Chief Credit Officer 13 23 Jennifer Johnson EVP, Chief Operations Officer Chief Information Officer 5 31 Rolando Mayans EVP, Chief Risk Officer 9 2
Slide 19: Diverse Market Segments
Diverse Market Segments Source: SNL Financial, Market Share Data as of June 30, 2016. Employment Data as of February 28, 2017. Operating Market includes all counties in which Equity Bancshares has deposit market share. June 30, 2016. Diverse market segments with economies based on transportation, ma
Slide 20: Market Data Demographics
Market Data Demographics Kansas Missouri Arkansas National Current Population 2,926,377 6,113,275 2,994,495 325,139,271 Historical Population Change (2010-2017) 2.6% 2.1% 2.7% 5.3% Median Household Income (2017) $55,420 $50,681 $44,271 $57,462 Projected Household Income Change (2017-2022) 6.93% 7.93
Slide 21: Selected Income Statement Data
Selected Income Statement Data Delivering earnings growth Selected Income Statement Data ($000s) 2013 2014 2015 2016 YTD Q1 2017 Interest income $46,845 $46,794 $53,028 $61,799 $23,215 Interest expense 5610 5433 6766 9202 3322 Net interest income 41235 41361 46262 52597 19893 Provision for loan loss
Slide 22: 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 41639 42004 42369 42735 42825 Cash and cash equivalents (1) $24,615 $37,702
Slide 23: Capitalization
Capitalization Source: SNL Financial and company documents (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 positi
Slide 24: 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 25: 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) March 31, 2017 December 31, 2016 December 31,2015 December 31,2014 December 31,2013 Total stockholders’ equity $,279,206 $,257,964 $,167,233
Slide 26: ROATCE and Efficiency Ratio
ROATCE and Efficiency Ratio Non-GAAP Financial Measures (Unaudited) Years Ended December 31, (Dollars in thousands, except per share data) 2015 2015 2015 2014 2013 2012 2011 Total stockholders’ equity $,167,232 $,167,232 $,167,232 $,117,729 $,139,873 $,138,169 $80,816 Less: preferred stock 16,372 16
Slide 27: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com