Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q3 2018 Earnings Presentation
28 slides from Equity Bancshares's earnings presentation, Oct 16, 2018
Slide 1: Q3 2018 Results Presentation
Q3 2018 Results Presentation October 16, 2018 Exhibit 99.2
Slide 2: Disclaimers: Special Note Concerning Forward-Looking Statements
Disclaimers Special Note Concerning Forward-Looking Statements This investor 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 statem
Slide 3: About EQBK
NASDAQ: EQBK 15.8 million shares outstanding / $593.2 million (1) $3.93 billion 0.99% / 13.17% Annualized Market Cap 59.3% YTD Exchange / Ticker Total Assets YTD ROAA / ROATCE (2) Efficiency Ratio (2) Locations FTEs Loan Portfolio 49 branches in Kansas, Missouri, Arkansas and Oklahoma Approximately
Slide 4: Equity Bancshares – Share Price & Consensus Estimates
Equity Bancshares – Share Price & Consensus Estimates As of October 15, 2018 market closing. Median consensus of 2018 analyst expectations, as of October 15, 2018. Based on 15,792,695 shares outstanding as of October 15, 2018. Non-GAAP financial measures. See the non-GAAP reconciliation at the end o
Slide 5: Pending Acquisition of Three Branches from MidFirst Bank
Pending Acquisition of Three Branches in Guymon and Cordell, Oklahoma from MidFirst Bank Announced: September 24, 2018
Slide 6: Pro Forma Footprint & Demographics
Pro Forma Footprint & Demographics EQBK MidFirst Bank Branches (3) Footprint 52 branches in 27 counties across 4 states Strong strategic positioning, with branches along I-70 and I-35 Branches clustered around key areas such as Wichita, Topeka, Kansas City, Tulsa, Southwest Kansas, Southeast Kansas,
Slide 7: Acquisition and Capital Activity Timeline
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 12/31/2016 **** Pro forma for EQBK’s purchase of Midland Financial Co. ***** As reported for the three months ended 9/30/18. 2009 $8.8MM of TARP issu
Slide 8: 2018 Third Quarter Highlights
Diluted earnings per share of $0.64 for 3Q 2018 Net income to common stockholders, adjusted for after-tax merger expense, was a record $10.9 million Core EPS of $0.68 Completed the acquisition of City Bank & Trust Company and announced the pending acquisition of 3 branches from MidFirst Bank Capital
Slide 9: Strong Trends in Operating Performance
Strong Trends in Operating Performance Diluted EPS and Net Income to Common Stockholders Return on Average Tangible Common Equity(2) Income and Margin Efficiency Ratio(2) & Non-interest Expense / Average Assets (1) Median consensus of 2018 analyst expectations, as of October 15, 2018. (2) Non-GAAP f
Slide 10: Tangible Common Book Value and Asset Growth
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 2014-2017: 9.2% 2016: Paid off SBLF Restructured term bank stock loan into LOC. Comple
Slide 11: Capital Position Over Time
Capital Position Over Time IPO * Paid off Series C preferred stock in January 2016
Slide 12: Total Loans
Total Loans Total ($000s) $2,103,279 $2,480,589 $725,876 $960,355 $1,383,605 Loan Yield 5.63% 5.31% 4.98% 5.43% 5.67% *Includes Ag. Real Estate
Slide 13: Metro Market Organic Loan Growth Drivers
Metro Market Organic Loan Growth Drivers Cumulative Metro Market Organic Loan Growth Since 9/30/2015
Slide 14: Asset Quality
Asset Quality Nonperforming Assets 1.33% 0.89% NPAs / Assets 1.43% Net Charge-Offs (NCO)/ Average Loans $0.85 $3.50 $1.19 NCO in $ ($ in millions) Nonaccrual Detail Classified Assets to Total Regulatory Capital Classified Assets / Equity Bank Total Regulatory Capital $0.89 1.52% 1.28% $0.70 46.7% 63
Slide 15: Total Deposits
Total Deposits Total ($000s) $2,382,013 $2,821,246 $981,177 $1,215,914 $1,630,451 Cost of Deposits* 0.43% 0.48% 0.56% 0.68% 0.87% * Includes interest and non-interest bearing deposits
Slide 16: Footprint & Target
Footprint & Target There are over 500 banks with deposits less than $750MM in our operating market.
Slide 17: Appendix
Appendix
Slide 18: Experienced Management Team
CRAIG ANDERSON Chief Operating Officer Joined Equity Bank March 2018 Served as President of UMBF Commercial Banking More than 31 years of banking experience Experienced Management Team BRAD ELLIOTT Chairman & CEO Founded Equity Bank in 2002 Served as Regional President of Sunflower Bank prior to for
Slide 19: Strategic Planning Team
Team Member Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service 14 23 Julie Huber EVP, Strategic Initiatives 14 24 Craig Mayo EVP, Chief Credit Officer 1 34 John Blakeney EVP, Chief Information Officer 1 30 Rolando Mayans EVP, Chief Risk Officer 10 25 Jennif
Slide 20: Diverse Market Segments
Diverse Market Segments Source: S&P Market Intelligence. Deposit and market share data as of June 30, 2018. Employment data as of August 31, 2018. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Equity Bank operates, including all completed m
Slide 21: Market Data Demographics
Market Data Demographics Kansas Missouri Arkansas Oklahoma National Current Population 2,921,699 6,141,815 3,023,501 3,959,630 329,236,175 Historical Population Change (2010-2019) 2.40% 2.55% 3.69% 5.55% 6.64% Median Household Income (2019) $59,745 $56,018 $47,167 $52,254 $63,174 Projected Household
Slide 22: Selected Income Statement Data
Selected Income Statement Data Delivering earnings growth Selected Income Statement Data ($000s) 12/31/14 12/31/15 12/31/16 12/31/17 9/30/18 Interest income $46,794 $53,028 $61,799 $,102,693 $,115,976 Interest expense 5433 6766 9202 16691 24514 Net interest income 41361 46262 52597 86002 91462 Provi
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 12/31/14 12/31/15 12/31/16 12/31/17 9/30/18 Cash and cash equivalents (1) $
Slide 24: Capitalization
Capitalization (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 position Ratio 12/31/14 12/31/15 12/31/16 12/31/17
Slide 25: Non-GAAP Reconciliations Overview
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) September 30, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2014 December 31,2012 Total stockholders’ equity $,443,2
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) Mar. 2018 2017 2016 2015 2014 Total stockholders’ equity $,381,487 $,374,144 $,257,964 $,167,232 $,117,729 Less: preferred stock 0 0 0 16,372 16,359 Less: goodwi
Slide 28: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com