Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Merger or Acquisition (October 2016)
24 slides from Equity Bancshares's merger presentation, Oct 20, 2016
Slide 1: Merger with Prairie State Bancshares, Inc.
Merger with Prairie State Bancshares, Inc. October 20, 2016 NASDAQ: EQBK Exhibit 99.3
Slide 2: Forward-Looking Statements
Forward-Looking Statements Special Note Concerning 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
Slide 3: Additional Information for Investors and Shareholders
Additional Information for Investors and Shareholders Important Additional Information This communication shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. Investors and security holders are urged to carefully review and
Slide 4: Equity Bancshares – About Us
Equity Bancshares – About Us (1) (1) (1),(2) (5) (2) (3) (1),(4) (5) As of October 17, 2016 market closing Consensus of 2016 analyst earnings expectations as of October 17, 2016 reported as $1.50 per share Consensus of 2017 analyst earnings expectations as of October 17, 2016 reported as $2.00 per s
Slide 5: Equity Bancshares, Inc. – Company Profile
Equity Bancshares, Inc. – Company Profile Source: SNL Financial, EQBK Management provided information, and the Wichita Business Journal Includes branches from the pending acquisition of Community First Bancshares, Inc. (“CFBI”). The acquisition of CFBI is subject to customary conditions, including,
Slide 6: Core Components of EQBK’s Story
Core Components of EQBK’s Story Growth in Commercial Banking Franchise Commercial banking customers (70% of loans) Manufacturing, transportation, business Strong Operating Performance Delivered earnings and EPS growth Above peer asset quality through cycles Leveraging infrastructure to achieve effic
Slide 7: Footprint and Demographics
Footprint and Demographics Footprint 34 branches in 20 counties(1) 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(1) Total population in current footprint of 2.1 million Median household
Slide 8: Prairie State Bancshares, Inc. - Overview
Prairie State Bancshares, Inc. - Overview Prairie Footprint Selected Cons. Financial Highlights (1) Dollars in thousands Source: SNL Financial Data included in the Selected Financial Highlights is at the consolidated level at or for the last twelve months ended 6/30/2016, unless otherwise noted; per
Slide 9: Kansas Market Presence
Kansas Market Presence Prairie State Bancshares, Inc. – Deposit Market Share Source: SNL Financial, deposit data as of 6/30/2016 (1) Per SNL Financial Logical market extension / expansion Distance between nearest branches is approximately 35 miles EQBK gains entry to two new counties Meaningful entr
Slide 10: Prairie Bancshares, Inc. – Northwest Kansas Market
Prairie Bancshares, Inc. – Northwest Kansas Market Sources: National Geographic, Kansas Geological Survey , govecountyks.com, Kansas Department of Commerce, SNL Financial Note: Deposit data as of 6/30/2016 Sheridan County (Kansas) Gove County (Kansas) Hoxie is the headquarters for Prairie Prairie De
Slide 11: Transaction Overview
Transaction Overview Structure Continues EQBK strategy of community bank consolidation EQBK to acquire 100% of Prairie State Bancshares, Inc. State Bank is expected to be merged into Equity Bank in 1Q 2017 Purchase Price Deal value: Approximately $24.5 million(1) Exchange Ratio: 6.41 EQBK shares and
Slide 12: Compelling Strategic Partnership
Compelling Strategic Partnership Low-Risk Profile Similar customer approach, credit cultures and operating styles Retention of key local management team members Comprehensive due diligence, no concentration concerns, including CRE Strong pro forma capital ratios Cost savings primarily from operating
Slide 13: Key Transaction Assumptions
Key Transaction Assumptions Cost Savings • Expected non-interest expense savings of approximately 21%, with 100% being achieved during 2018 (excludes amortization of core deposit intangibles) • $610k in 2017 pre-tax, $723k per year pre-tax thereafter Revenue Enhancements • None included in pro forma
Slide 14: Financial Impact
Financial Impact EPS Impact ~6% accretive in 2017 ~6% accretive in 2018 Tangible Book Value Impact ~ 0.9% dilutive to tangible book value at close(1) Tangible book value earn-back period estimated to be approximately 1.3 years(2) Pro Forma Consolidated Capital ~8% Tangible Common Equity / Tangible A
Slide 15: Comprehensive Due Diligence
Comprehensive Due Diligence Overview EQBK’s experienced loan review team has successfully completed 9 transactions, with an additional transaction expected to close Q4 2016 Followed our disciplines; performed due diligence twice, approximately 6 months apart ~65% of the loan portfolio was reviewed “
Slide 16: Summary
Summary Pro forma assets of $2.2 billion(1) Consistent with business plan and shareholder value proposition Strategic acquisition that enhances franchise value through expansion into adjacent northwestern Kansas markets Clear execution pathway Compelling transaction economics with attractive EPS acc
Slide 17: Benefits to the Combined Stakeholders
Benefits to the Combined Stakeholders Customers Community banking model with a focus on serving clients Addition of branch presence in appealing Gove and Sheridan Counties Ability to provide enhanced products and services with larger lending limits Community bank market leader in Kansas, Missouri an
Slide 18: Supplemental Information
Supplemental Information
Slide 19: Continue Building Value via Strategic Execution
Note: Yellow shading indicates M&A activity; gray shading indicates capital activity * Data as of 12/31/2007. ** Data as of 12/31/2011. *** Data as of 12/31/2017, pro forma Prairie State Bancshares, Inc. transaction Source: Company management 2009 $8.8mm of TARP issued Opened 2 branches in Overland
Slide 20: Prairie State Bancshares, Inc. – Bank Financial Highlights
Prairie State Bancshares, Inc. – Bank Financial Highlights Source: SNL Financial Note: Bank level data used Note: Core Income excludes extraordinary items, nonrecurring items and gain/loss of securities (1) Core ROAA and Core ROAE are not tax impacted for Sub-S election
Slide 21: EQBK – Financial Highlights
EQBK – Financial Highlights Source: SNL Financial
Slide 22: Pro Forma Loan and Deposit Composition
Source: SNL Financial EQBK loan and deposit per SNL financial as of 6/30/2016. Includes effect of pending acquisition with CFBI, which remains subject to customary conditions, including among others, the approval of the stockholders of EQBK and CFBI. Loan and deposit Call Report data as of 6/30/2016
Slide 23: EQBK’s Professional Board
EQBK’s Professional Board Gary Allerheiligen Accounting CPA Advisor, Retired Partner, Grant Thornton (KS) 0.21 Jim Berglund Banking Bank Advisor, Retired President / CEO Sunflower Bank (KS) 0.34 Michael Downing Former Ellis State Bank President (KS) 2.06 Brad Elliott Chairman / CEO of Equity Bancsha
Slide 24: Merger with Prairie State Bancshares, Inc.
Merger with Prairie State Bancshares, Inc. October 20, 2016 NASDAQ: EQBK
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