Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q2 2024 Earnings Presentation
26 slides from Equity Bancshares's earnings presentation, Jul 17, 2024
Slide 1: Earnings Presentation 2nd Quarter 2024
Exhibit 99.2 Earnings Presentation 2nd Quarter 2024 July 17, 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 $4.3B $569.4M Assets Loans Deposits Market Cap 1 7.55% 11.12% 14.61% WICHITA TCE/TA 2 CET 1 TRBC Headquarters 3 Strategic Execution Of Acquisitions KAN SASLA N D B AN K M ER GER $5.2B Approv e d in Q2 2024 Close d on July 1 27.2% Compo
Slide 4: Leadership Team
Leadership Team Brad Elliott Rick Sems Equity Bancshares, Inc. Chairman & CEO Equity Bank CEO Years in Banking: 35 Years in Banking: 24 Founded Equity Bank in 2002 Announced as Equity Bank CEO in May 2024. Joined Equity Bank as 2018 EY Entrepreneur of the Year National Finalist President in May 2023
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 7.44% $29.78 Compound Annual Growth Rate $28.79 $29.13 Ex. AOCI $25.55 $25.65 $25.37 $25.70 $24.68 $23.32 $19.37 $21.67 6 $20.75 $17.82 $16.87 $19.08 $20.75 $16.26 $17.61 $16.64 $15.97 AOCI Impact 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1) Tangible Book Valu
Slide 7: 2nd Quarter 2024 Financial Highlights
2nd Quarter 2024 | Financial Highlights HIGHLIGHTS EARNINGS & PROFITABILITY Q2 24 Q1 24 Q2 23 $15.3M Earnings Per Share 1 Tangible Book Value Per Share 1 $0.99 $25.70 $1.03 $25.10 $0.80 $23.08 Adjusted Operating 1 Net Income 1 Net Income $15.3M $16.1M $12.5M Net Interest Margin 3.94% 3.75% 3.38% 1 E
Slide 8: Net Income
Net Income Primary Drivers Net Interest Income Noninterest Income Noninterest Expense Net interest income totaled $46.5 million in the Noninterest income totaled $8.9 million in the Noninterest expense totaled $38.9 million in the second quarter, up $2.3 million from the first second quarter, driven
Slide 9: Performance Metrics
Performance Metrics Adjusted Return On Tangible Common Equity 1 Adjusted Return on Average Assets 1 16.97% 17.04% 1.25% 1.18% 14.71% 14.19% 13.76% 0.99% 0.97% 0.97% 9 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Efficiency Ratio 1 TCE / TA Excluding AOCI 1 74.35% 9
Slide 10: Profitability
Profitability Revenue Composition 1 Profitability Ratios 1 Noninterest Income / Operating Revenue Net Interest Income Noninterest Income 20.92% 17.34% 17.56% 15.44% 16.24% $8,958 $11,668 $8,736 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $8,272 $7,204 Noninterest Income / AA 10 0.91% 0.69% 0.69% 0.55% 0
Slide 11: Net Interest Income
Net Interest Income Primary Drivers Deposits Cost of Deposits Loan Yield Investment Yield Borrowings Excess Liquidity Noninterest-bearing Cost of total deposits Loan yield increased Realized a full Borrowing balances Excess on balance deposits constitute decreased 2bps and 30bps quarter-over- quarte
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 22.7% 25.4% 85.1% 86.6% 86.2% 85.6% 86.2% Current Time Deposits < 100k Deposit 4.6% Composition $3,601 $3,535 $3,574 $3,741 $3,742 Millions Time D
Slide 13: Yield / Cost Components
Yield / Cost Components Cost Analysis Cumulative Betas Cost of Deposits Cost of IB Deposits Q2 Q3 Q4 Q1 Q2 2023 2023 2023 2024 2024 Fed Rate Change Since Beginning of 4.91% 5.18% 5.25% 5.25% 5.25% Rate Cycle – Q4 2021 2.58% 2.77% 2.78% 2.40% 2.14% Loans 47% 49% 50% 53% 58% 1.98% 2.16% 2.14% 1.64% 1.
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio Loan Mix Total Loans & Yield on Loans 7.15% 6.62% 5.00% 4.77% 4.98% $3.2B $3.3B $3.3B $3.5B $2.6B Commercial and industria l 19% 2020 2021 2022 2023 Q2 2024 14 Com m er cial real estate Resident ia l 39% real estate 17% Total Classified Assets Real estate $48.4M construc t
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% 0.52% 1.39% 1.39% 1.35% 1.33% 0.31% 0.42% 1.30% 0.05% 0.04% 0.04% 0.05% $0.6 0.04% $1.2 $0.8 $0.3 $0.7 1.34% 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% 1.30% 0.53% 0.52% 0.12% 0.37% 0.05% 0.04% 0.04% $1.2 $0.6 $0.6 1.53% $43
Slide 17: Tangible Book Value
Tangible Book Value INCREASED $0.60 IN Q2 2024 TO $25.70 17 Q1 Q2 Q2 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 6/30/2024 EQBK Well Capitalized CAPITAL PRIORITIES Maintain well capitalized regulatory levels 14.61% Capacity for organic growth 11.70% 11.12% 10.50% 8.50% Merger & acquisitions 9.14% 7.00% 7.55% Dividend payout ratio
Slide 19: Outlook on Key Business Drivers
Outlook on Key Business Drivers 2 ND QUARTER 2024 FORWARD LOOKING RESULTS ESTIMATES 3 RD QUARTER 2024 FY 2024E Avg. $4,251M $4,325 – 4,425M $4,325 – 4,375M $4,275 - 4,350M Deposits Avg. $3,459M $3,475 - 3,550M $3,450 - 3,500M $3,450 - 3,525M Loans Avg. $4,745M $4,775 - 4,875M $4,750 - 4,800M $4,700
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 June 30, March 31, December 31, September 30, June 30, 2024 2024 2023 2023 2023 Total stockholder's equity $461,435 $456,776 $452,860 $418,130 $418,435 Less: goo
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF ROATCE AND EFFICIENCY RATIO ($ in thousands, except per share data) Quarter Ended June 30, March 31, December 31, September 30, June 30, 2024 2024 2023 2023 2023 Total average stockholders' equity $455,322 $460,244 $423,207 $426,260 $424,862 Less: average int
Slide 25: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF RETURN ON AVERAGE ASSETS, AVERAGE EQUITY AND OPERATING NET INCOME ($ in thousands, except per share data) Quarter Ended June 30, March 31, December 31, September 30, June 30, 2024 2024 2023 2023 2023 Net income (loss) allocable to common stockholders 11,716 1
Slide 26: investor.equitybank.com
| EQUITY BANCSHARES, INC. investor.equitybank.com