Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q3 2017 Earnings Presentation
28 slides from Equity Bancshares's earnings presentation, Oct 19, 2017
Slide 1: Q3 2017 Results Presentation
Q3 2017 Results Presentation October 19, 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: Additional Information for Investors and Shareholders
Additional Information for Investors and Shareholders Important Additional Information In connection with the proposed transactions, Equity filed (i) a registration statement on Form S-4 (File No. 333-219974) with the SEC which includes a proxy statement of Eastman National Bancshares, Inc. (“Eastma
Slide 4: Equity Bancshares – About Us
Equity Bancshares – About Us As of October 13, 2017 market closing. Median consensus of 2017 analyst earnings expectations as of October 13, 2017, reported as $1.96 per share. Based on 12,230,319 shares outstanding as of September 30, 2017. Non-GAAP financial measures. See the non-GAAP reconciliatio
Slide 5: About EQBK
NASDAQ: EQBK 12.2 million shares outstanding / $443.5 million (1) $2.41 billion 0.94% / 10.75% Annualized Market Cap 61.6% YTD Exchange / Ticker Total Assets YTD ROAA / ROATCE (2) Efficiency Ratio (2) Locations FTEs Loan Portfolio 37 branches in Kansas, Missouri, and Arkansas Approximately 457 43% o
Slide 6: Company Profile - Pro Forma Footprint and Demographics
Company Profile - Pro Forma Footprint and Demographics Source: SNL Financial & The Nielsen Company Eastman National Bank’s branch count excludes one facility location without deposits Unemployment rate as of August 2017 Unemployment Rates(1) Kansas: 4.2% Missouri: 4.2% Arkansas: 3.5% Oklahoma: 4.7%
Slide 7: Q3 2017 Highlights
Continued development of our acquisition pipeline and integration of Prairie State Bancshares, Inc. Announced upcoming mergers with Cache Holdings, Inc., parent of Tulsa-based Patriot Bank, and Eastman National Bancshares, Inc., parent of Eastman National Bank in Newkirk/Ponca City, OK Total Assets
Slide 8: 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 9: Revenue & Efficiency Ratio
Revenue & Efficiency Ratio(1) Efficiency Ratio(1) & Non Interest Expense/Average Assets Income and Margin 85% 84% 85% 84% 15% 16% 15% 16% $48,627 $49,049 $54,626 $62,584 * Excluding net gain on securities transactions and net gain on acquisition. Non-GAAP financial measure. See the non-GAAP reconcil
Slide 10: 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 2013-2016: 24.3% 2016: Paid off SBLF. Restructured term bank stock loan into LOC.
Slide 11: Capital Position Over Time
Capital Position Over Time $17.2mm Share Repurchase (13.0% of 2013 Tier 1 Common) IPO * Paid off Series C preferred stock in January 2016
Slide 12: Capital Summary and Excess Capital Priorities
Share Buybacks Attractive Acquisitions Common Dividends Capital Summary Excess Capital Priorities Total Capital Composition ($M) as of September 30, 2017 Capital Ratios All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized” Strong relationship with regulat
Slide 13: Loan Portfolio Composition & Growth
Loan Portfolio Composition & Growth Loan Composition Loan Composition 2013 2014 2015 2016 Q3 2017 '13-'16CAGR ($ in 000s) Commercial Real Estate $,341,512 $,364,096 $,397,017 $,593,108 $,656,202 0.20200000000000001 Commercial ,139,365 ,183,100 ,262,032 ,348,465 ,363,102 0.35730000000000001 Agricultu
Slide 14: 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 15: Core Deposit Franchise
Core Deposit Franchise Deposit Portfolio Mix Deposit Portfolio Mix Deposit Composition 2013 2014 2015 2016 Q3 2017 '13-'16CAGR ($ in 000s) Time Deposits $,363,210 $,342,160 $,438,612 $,553,158 $,645,249 0.15049999999999999 Signature Deposits ,584,109 ,639,017 ,777,302 1,077,293 1,223,244 0.2263 Tota
Slide 16: Footprint & Targets
Footprint & Targets
Slide 17: Appendix
Appendix
Slide 18: 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 19: 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, Strategic Initiatives 13 23 Scott Smits EVP, Chief Credit Officer 1 29 Jennifer Johnson EVP, Chief Operations Officer 5 31 John Blakeney EVP, Chief
Slide 20: Diverse Market Segments
Diverse Market Segments Source: SNL Financial, Market Share Data as of September 30, 2017. Employment Data as of August 31, 2017. Operating Market includes all bank locations and counties in which Equity Bancshares Inc. , Eastman National Bancshares, Inc., or Cache Holdings, Inc. has deposit market
Slide 21: Market Data Demographics
Market Data Demographics Kansas Missouri Arkansas Oklahoma National Current Population 2,914,920 6,117,659 3,003,556 3,959,551 326,533,070 Historical Population Change (2010-2018) 2.17% 2.15% 3.01% 5.55% 5.76% Median Household Income (2018) $58,348 $53,831 $44,901 $52,112 $61,045 Projected Household
Slide 22: Selected Income Statement Data
Selected Income Statement Data Delivering earnings growth Selected Income Statement Data ($000s) 2013 2014 2015 2016 YTD Q3 2017 Interest income $46,845 $46,794 $53,028 $61,799 $72,885 Interest expense 5610 5433 6766 9202 11472 Net interest income 41235 41361 46262 52597 61413 Provision for loan los
Slide 23: 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 43008 Cash and cash equivalents (1) $24,615 $37,702
Slide 24: 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 25: 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 26: 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) YTD Sep. 30, 2017 December 31, 2016 December 31,2015 December 31,2014 December 31,2013 Total stockholders’ equity $,291,835 $,257,964 $,167,
Slide 27: 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 28: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com