Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Investor Day (June 2022)
34 slides from Equity Bancshares's investor day presentation, Jun 14, 2022
Slide 1: Analyst Day Presentation June 14, 2022
Analyst Day Presentation June 14, 2022 Exhibit 99.1
Slide 2: Forward Looking Statements
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 reflect the current views of Equity’s
Slide 3: Analyst & Investor Day Agenda
Agenda Analyst & Investor Day Agenda Presenter Welcome & Introduction Brad Elliott - Chairman, CEO & Founder Business Line Updates Deposit Strategy Jonathan Roop - Chief Deposit Strategy Officer Loan Portfolio & Production Craig Anderson - President Management Technology Strategy Greg Lawson - Chief
Slide 4: Welcome & Introduction
Equity Bancshares, Inc. Analyst Day Welcome & Introduction Brad – Chairman, CEO, and Founder June 14, 2022 4
Slide 5: Our Company: Committed to our Entrepreneurial Spirit
Our Company 5 Committed to our Entrepreneurial Spirit Equity Bancshares, Inc. NASDAQ: EQBK Start-Up: 2002 - 2007 Brad Elliott, current Chairman and CEO, founded Equity Bancshares, Inc. in 2002. Closed 5 branch or whole bank acquisitions Opened 2 branches in Missouri Growth: 2008 - 2016 Opened branch
Slide 6: Strong Senior Leadership Team
Strong Senior Leadership Team 6 Brad Elliott Chairman & CEO Years at Equity: 20 | Years in Banking: 33 Eric Newell Chief Financial Officer Years at Equity: 2 | Years in Banking: 20 Craig Anderson President Years at Equity: 4 | Years in Banking: 40 Greg Kossover Chief Operating Officer Years at Equit
Slide 7: Deposit Update & Strategy
Equity Bancshares, Inc. Analyst Day Deposit Update & Strategy Jonathan Roop – Chief Deposit Strategy Officer June 14, 2022 7
Slide 8: Strong Core Deposit Franchise
Strong Core Deposit Franchise 8 Deposit Composition(1) Fully integrated digital banking platform with an adoption rate of 60.1% among core banking customers Continued emphasis on development of relationships to drive growth in non-interest bearing deposits. Cost of Deposits: 0.16%(1) Core Deposits(2
Slide 9: Core Deposit Growth
Core Deposit Growth 9 Cost of Deposits(1) 0.16% 0.22% 0.52% 0.91% 1.30% Year-to-date, Includes the impact of non-interest bearing deposits Dollars in millions
Slide 10: Digital Channel Engagement
Digital Channel Engagement 10 Brilliant Bank is an online only division of Equity Bank Used as a deposit gathering lever Can market nationwide No cannibalization of existing Equity Bank accounts Brilliant Bank Figures are as of rounded to the nearest thousand and as of 3/31/2022
Slide 11: Creating Scalable Efficiencies – ITMs
Creating Scalable Efficiencies – ITMs 11 Launching Interactive Teller Machine Network in 2022 starting in select markets Creates efficiencies in staffing model through natural attrition Gradually reduces purely operational branch staff and refocuses on customer service
Slide 12: Loan Production & Portfolio
Equity Bancshares, Inc. Analyst Day Loan Production & Portfolio Craig Anderson – President June 14, 2022 12
Slide 13: Diversified Loan Portfolio
Diversified Loan Portfolio 13 Year-to-Date Loan Yield 4.44% 5.19% 5.73% 5.74% For financial statement reporting, management considers other factors in addition to purpose when assessing risk and identifying reporting classes. As such, the above is not intended to reconcile to the Company’s loan disc
Slide 14: HSA Business
HSA Business 14 Nearing launch of Equity Bank HSA HSA offers sticky low-cost core deposits with significant fee income opportunities Business lead has been in place for 18+ months Combines well with loan and TM services to offer a complete banking experience to SMBs Highlights
Slide 15: Technology Investments
Equity Bancshares, Inc. Analyst Day Technology Investments Greg Lawson – Chief Information Officer June 14, 2022 15
Slide 16: Information Technology Poised for Scale
Information Technology 16 Poised for Scale - Core Precision, Q2, SNL Banker Infrastructure Restructure of IT support Improved Customer Service and Call Handling RPA Highlights
Slide 17: Credit Update
Equity Bancshares, Inc. Analyst Day Credit Update John Creech – Chief Credit Officer June 14, 2022 17
Slide 18: Asset Quality Commentary
Asset Quality 18 Commentary Net charge-offs were $362 thousand for the quarter, or 5 bps of average loan assets annualized. Reserve ratio, exclusive of PPP assets, is 1.48% remaining well positioned for any losses which materialize from the current economic uncertainty surrounding inflation and re
Slide 19: Credit Quality
Credit Quality 19 Total Reserve Ratio Classified Assets Nonaccrual Detail
Slide 20: Financial Management
Equity Bancshares, Inc. Analyst Day Financial Management Eric Newell – Chief Financial Officer June 14, 2022 20
Slide 21: Allowance for Credit Loss (ACL)
Allowance for Credit Loss (ACL) 21 Impact of CECL adoption and subsequent intra-quarter movement
Slide 22: Capital Management
Capital Management 22 Capital Management Strategy Capital Targets EQBK establishes capital targets based on the following objectives: Maintain designation as a “well capitalized” institution under fully phased-in Basel III regulatory definitions Ensure capital levels are commensurate with the Compan
Slide 23: Bank Liquidity
Bank Liquidity 23 Liquidity Analysis Portfolio Characteristics Dividend Capacity from the Bank Description Amortized Cost Unrealized Gain / (Loss) Carrying Value
Slide 24: Investment Portfolio Strategy
Investment Portfolio Strategy 24 We believe the structure in the portfolio outperforms peers through the cycle Portfolio average life is shorter than peer; effective duration equal to peer and hard final maturities of our bullet investments provide guaranteed cash flow Portfolio is nearly fully exte
Slide 25: Outlook on Key Business Drivers
Outlook on Key Business Drivers – Q1 Earnings 25 Consideration & Expectations Continued uncertainty of inflation, supply chain disruption and input cost escalation. Focus on continued balance sheet strength and security while continuing to pursue growth. NOTE: Figures presented in this outlook repre
Slide 26: Updated Q2 Forecast – Interest Income
Updated Q2 Forecast – Interest Income 26 Average Earning Assets Net Interest Margin 4,750,000 3.35% 6/30/22 E represents current expected range to be reported 6/30/2022 Net Interest Margin range is inclusive of purchase accounting amortization and PPP interest and fees NOTE: Figures presented in thi
Slide 27: Updated Q2 Forecast – Non-Interest
Updated Q2 Forecast – Non-Interest 27 Noninterest Income Noninterest Expense 8,500 31,500 6/30/22 E represents current expected range to be reported 6/30/2022 NOTE: Figures presented in this outlook represent forward-looking statements and are not guarantees of future performance and are subject to
Slide 28: Updated 2022 Outlook
Updated 2022 Outlook 28 NOTE: Figures presented in this outlook represent forward-looking statements and are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Please see Special Note Concerning Forward-Looking Statements. 202
Slide 29: Focus Variables for Outlook & Forecast
Focus Variables for Outlook & Forecast 29 Our outlook requires clarity around certain variables, including:
Slide 30: Strategic Overview & Closing Remarks
Equity Bancshares Analyst Day Strategic Overview & Closing Remarks Brad – Chairman, CEO, and Founder June 14, 2022 30
Slide 31: Long Term Key Strategic Objectives
Long Term Key Strategic Objectives 31 Grow Tangible Book Value Maximize Risk Adjusted Return on Assets Offer best-in-class banking products and services Drive organic fee income generation Efficiently grow core earnings Effectively deploy capital through share repurchases, dividends and whole bank m
Slide 32: Our Opportunity
Our Opportunity 32 There are over 1000 bank offices with deposits less than $750MM in our market Key Potential New Markets Disciplined M&A Strategy We look to partner with companies with strong community markets focus, while expanding our presence in our current metro markets or adjacent markets of
Slide 33: Our Value Proposition
Our Value Proposition 33 Market Diversification and Strategy for Growth Experienced and Invested Management Team 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 ou
Slide 34: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com