Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Merger or Acquisition (July 2017)
33 slides from Equity Bancshares's merger presentation, Jul 17, 2017
Slide 1: Mergers with Eastman National Bancshares, Inc. and Cache Holdings, Inc.
Mergers with Eastman National Bancshares, Inc. and Cache Holdings, Inc. July 17, 2017 NASDAQ: EQBK Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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
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 Recent Price (1) 31.57 $ Median Consensus Price Target 37.00 $ Tangible Book Value Per Share 17.00 $ Price to 2017 consensus earnings (1)(2) 16.11 x Price to Tangible Book Value Per Share (1) 1.86 x Q1 2017 diluted earnings per share (EPS) 0.40 $ 2017 EPS Consensus (2) 1
Slide 5: Equity Bancshares – Company Profile
Equity Bancshares – Company Profile EQBK (Nasdaq ticker) $2.4 Billion Total Assets $385 Million Market Cap (as of 7/14/2017) Deposit franchise: Kansas (18 branches with $803mm in deposits)(1) Missouri (14 branches with $535mm in deposits)(1) Arkansas (5 branches with $385mm in deposits)(1) Partnersh
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: Pro Forma Footprint and Demographics
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 May 2017 Unemployment Rates(1) Kansas: 3.7% Missouri: 4.1% Arkansas: 3.3% Oklahoma: 4.6% USA: 4.1% EQBK (37) E
Slide 8: Merger with Eastman National Bank (Eastman National Bancshares, Inc.)
Merger with Eastman National Bank (Eastman National Bancshares, Inc.)
Slide 9: Eastman National Bank - Overview
Eastman National Bank - Overview Eastman Footprint Selected Financial Highlights (1) Dollars in thousands. Source: SNL Financial Data included in Selected Financial Highlights is at the bank level at or for the last twelve months ended 3/31/2017, unless otherwise noted; per SNL Financial Core deposi
Slide 10: Oklahoma Market Presence
Oklahoma Market Presence Eastman National Bank – Deposit Market Share Source: SNL Financial, deposit data per the 2016 FDIC Summary of Deposits Eastman National Bank’s branch count excludes one facility location without deposits Logical market expansion Distance between nearest branches is approxima
Slide 11: Eastman National Bank – Ponca City Market
Eastman National Bank – Ponca City Market Sources: SNL Financial, poncaworks.com, goponca.com and phillips66.com Note: Deposit data per the 2016 FDIC Summary of Deposits. (1) Based on NAICS code. Ponca City MSA (Oklahoma) Eastman National Bank is headquartered in Newkirk and operates within the Ponc
Slide 12: Transaction Overview
Transaction Overview Structure Continues EQBK strategy of community bank consolidation EQBK to acquire 100% of Eastman National Bancshares, Inc. Eastman National Bank is expected to be merged into Equity Bank in 4Q 2017 Purchase Price Deal value: Approximately $46.7 million(1) Exchange Ratio: 6.1389
Slide 13: Compelling Strategic Partnership
Compelling Strategic Partnership Financially Attractive Structured within EQBK’s merger metrics and discipline $0.20 EPS Accretive in 2018 and $0.21 EPS Accretive in 2019 3.2% dilutive to tangible book value with a TBV earnback period of 2.8 years using the crossover method Improves combined prospec
Slide 14: Key Transaction Assumptions
Key Transaction Assumptions Cost Savings Expected non-interest expense savings of approximately 28%, or approximately $1.9 million, with 100% being achieved during 2018 Revenue Enhancements None included in pro forma projections One-time Merger Related Costs Approximately $4.6 million pre-tax Loan M
Slide 15: Merger with Patriot Bank (Cache Holdings, Inc.)
Merger with Patriot Bank (Cache Holdings, Inc.)
Slide 16: Patriot Bank - Overview
Patriot Bank - Overview Patriot Footprint Selected Financial Highlights (1) Dollars in thousands. Source: SNL Financial Data included in Selected Financial Highlights is at the bank level at or for the last twelve months ended 3/31/2017, unless otherwise noted; per SNL Financial Core deposits define
Slide 17: Oklahoma Market Presence
Oklahoma Market Presence Patriot Bank – Deposit Market Share Source: SNL Financial, deposit data per the 2016 FDIC Summary of Deposits Logical market expansion Distance between nearest Equity branch is approximately 70 miles EQBK gains entry into the attractive Tulsa market Meaningful market entry v
Slide 18: Patriot Bank – Tulsa Market
Patriot Bank – Tulsa Market Sources: SNL Financial, growmetrotulsa.com Note: Deposit data per the 2016 FDIC Summary of Deposits. Tulsa MSA (Oklahoma) Tulsa is the headquarters for Patriot Bank Patriot Bank deposit market share rank: #20 (1%) The Tulsa MSA is home to almost 1 million residents, makin
Slide 19: Transaction Overview
Transaction Overview Structure Continues EQBK strategy of community bank consolidation EQBK to acquire 100% of Cache Holdings, Inc. Patriot Bank is expected to be merged into Equity Bank in 4Q 2017 Purchase Price Deal value: Approximately $50.5 million(1) Exchange Ratio: 53.000 EQBK shares and $615.
Slide 20: Compelling Strategic Partnership
Compelling Strategic Partnership Financially Attractive Structured within EQBK’s merger metrics and discipline $0.15 EPS Accretive in 2018 and $0.16 EPS Accretive in 2019 2.1% dilutive to tangible book value with a TBV earnback period of 2.8 years using the crossover method Improves combined prospec
Slide 21: Key Transaction Assumptions
Key Transaction Assumptions Cost Savings Expected non-interest expense savings of approximately 24%, or approximately $1.3 million, with 100% being achieved during 2018 Revenue Enhancements None included in pro forma projections One-time Merger Related Costs Approximately $2.7 million pre-tax Loan M
Slide 22: Combined Summary Impact
Combined Summary Impact
Slide 23: Pro Forma Footprint
Pro Forma Footprint Eastman National Bank’s branch count excludes one facility location without deposits EQBK (37) Eastman National Bank (4) Patriot Bank (1) 55 miles 70 miles 80 miles
Slide 24: Pro Forma Financial Impact
Pro Forma Financial Impact EPS Impact ~14% accretive in 2018 ($0.32) ~14% accretive in 2019 ($0.33) Tangible Book Value Impact Less than 5% dilutive to tangible book value at close Tangible book value earn-back period estimated to be approximately 2.8 years, using the cross-over method Pro Forma Con
Slide 25: Pro Forma Loan and Deposit Composition
Pro Forma Loan and Deposit Composition EQBK Stand Alone Eastman Stand Alone Patriot Stand Alone Pro Forma Loan Mix Deposit Mix Total: $1,523 million Total: $181 million Total: $288 million Total: $1,992 million Total: $1,821 million Total: $218 million Total: $272 million Total: $2,310 million Yield
Slide 26: Benefits to the Combined Stakeholders
Benefits to the Combined Stakeholders Shareholders Strategically and financially attractive transactions Successful Board and management teams with strong community ties Improved liquidity for Cache and Eastman shareholders Opportunity for increased shareholder value for all three companies Customer
Slide 27: Summary
Summary Patriot and Eastman join franchise allowing for continued growth and development of products and services Strategic acquisitions that enhance franchise value through expansion into attractive Oklahoma markets and are consistent with business plan and shareholder value proposition Clear execu
Slide 28: Supplemental Information
Supplemental Information
Slide 29: Continue Building Value via Strategic Execution
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 3/31/2017, pro forma for Eastman National Bank and Patriot Bank transactions Source: Company manageme
Slide 30: Eastman National Bank – Bank Financial Highlights
Eastman National Bank – Bank Financial Highlights Source: SNL Financial Note: Bank level data used
Slide 31: Patriot Bank – Bank Financial Highlights
Patriot Bank – Bank Financial Highlights Source: SNL Financial Note: Bank level data used Note: Income metrics are not adjusted for S-Corp status
Slide 32: EQBK – Financial Highlights
EQBK – Financial Highlights Source: SNL Financial and FactSet
Slide 33: EQBK's Professional Board
EQBK’s Professional Board Gary Allerheiligen Accounting CPA Advisor, Retired Partner, Grant Thornton (KS) Jim Berglund Banking Bank Advisor, Retired President / CEO Sunflower Bank (KS) Dan Bowers Former Secretary & Vice Chairman of Community First Bancshares, Inc. Michael Downing Former Ellis State
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