Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q4 2022 Earnings Presentation
25 slides from Equity Bancshares's earnings presentation, Jan 25, 2023
Slide 1: Fourth Quarter 2022 Earnings Presentation
Exhibit 99.2 EQUITY BANCSHARES, INC. Fourth Quarter 2022 Earnings Presentation 1/26/2023
Slide 2: Forward Looking Statements
Forward Looking Statements This ion contains “forward-lookit within the jing of Section 27A of ities Act of 1933, as amended, and Section 21£ of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of the management of Equity Bancshares, Inc. ("
Slide 3: Our Company
Equity Bancshares, Inc. O Uu r Co mM pa ny NASDAQ; EQBK Start-Up: 2002 - 2007 r ‘ — Brad Elliott, current Chairman and CEO, founded Equity Committed to our Entrepreneurial Spirit Bancshares, Inc. in 2002 ¥ Completed 5 branch or whole bank acquisitions Y Opened 2 branches in Missouri Growth: 2008 - 2
Slide 4: Q4 2022 Financial Highlights
Q4 2022 Financial Highlights
Slide 5: Net Income Walk
Net Income Walk Drivers of Net Income Change Period over Period Net Income Drivers “} Net Interest Income $4,876 Net Interest Income increased $87 thousand linked quarter, as the interest income continued to benefit more from rising interest rates than $15,171 $15 increases to interest expense ($4,7
Slide 6: Solar Tax Credit Investment Impact
Solar Tax Credit Investment Impact
Slide 7: Revenue Trends
Revenue Trends Quarterly Results ee ary ee a 18.9% 18.9% 3.62% 3.68% 3.33% 3.37% - 3.01% - $41,918 $41,994 41,944 42,031 39,164 erie $39,289 $39,566 $41; $42, gem $38,462 $39, 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 —_ a (1) = (2) alain ea Meehan EE Nonint
Slide 8: Net Interest Income
Net Interest Income Net Interest Income Period over Period $41,944 (88) ($17) ($438) NILQ3 Change in IEA PPP Income — Change in IBL Adjusted Fourth Quarter NIM sadn 0.02% -0.10% NIM Q4 Purchase Acct Mtg Prem. Amort. ($4,351) Cost of Funds -0.02% Other $4,901 IEA Rate $42,031 NIIQ4 3.59% Fully Adj NI
Slide 9: Yield / Cost Components
Yield / Cost Components Cost Analysis Cumulative Betas “ ‘ “ - Dec ff ra | ca | am | ne | OF | Average FF Rate 0.07% 0.76% 2.20% 3.65% 4.10% Loans 33% 34% 34% 34% 0.18% 0.16% 0.20% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Deposits 3% 11% 16% 20% —t=|B Deposit Cost —=Total Deposit Cost —ml-Total IBL Cost Yield
Slide 10: Performance Metrics
Performance Metrics Return on Tangible Common Equity”) Pre-Tax, Pre-Provision ROAA") 17.6% 17.1% 15.9% 12/31/21 3/31/22 6/30/22 9/30/22 12/31/22 12/31/21 3/31/22 Efficiency Ratio”) 6/30/22 9/30/22 12/31/22 TCE / TA excluding AOCI™ 8.45% 8.55% 8.75% 8.92% 9.12% 12/31/21 3/31/22 6/30/22 9/30/22 12/31/
Slide 11: Strong Core Deposit Franchise
Strong Core Deposit Franchise
Slide 12: Asset Quality Trends – Annual
Asset Quality Trends – Annual
Slide 13: Asset Quality Trends - Quarterly
Asset Quality Trends - Quarterly
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio Quarter-to-Date Loan Yield 12/31/22 9/30/22 40% 27% 11% 6% “ft 6/30/22 40% 27% 11% 6% of 3/31/22 41% 26% 12% 6% “f 12/31/21 i) 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 @ Commercial Real Estate mc&l @ Residential Real Estate @ Agriculture RE Inves
Slide 15: Allowance for Credit Loss (ACL)
Allowance for Credit Loss (ACL)
Slide 16: Investment Portfolio Strategy
Investment Portfolio Strategy
Slide 17: Tangible Book Value
Tangible Book Value Tangible book value per share") increased $1.08 in Q4 2022 $0.46 $21.67 $0.73 $0.07 $0.06 $21.20 $(0.10) $20.59 TD Net Income Amort. of Intangibles Stock Based Comp / ESPP Unreal. Gain / (Loss) 9/30/22 TBVPS Dividend Treasury Stock 12/31/22 TBVPS excl. AOCI 12/31/22 TBVPS 17 (1)
Slide 18: Capital Management
Capital Management The Company’s capital ratios are comfortably above well capitalized levels as of 12/31/2022 Equity Bank Capital Management Strategy Capital Targets EQBK establishes capital targets based on the following objectives: Y Maintai ignation as a “well under fully phased-in Basel II! reg
Slide 19: Outlook on Key Business Drivers
Outlook on Key Business Drivers
Slide 20: Focus Variables for Outlook & Forecast
Focus Variables for Outlook & Forecast
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 22: TCE to TA and Tangible Book Value per Share
TCE to TA and Tangible Book Value per Share
Slide 23: ROATCE and Efficiency Ratio
ROATCE and Efficiency Ratio Non-GAAP Financial Measures (Unaudited) (Dollars in thousands, except per share data) December 31, September 30, June 30, March 31, December 31, 2022 2022 2022 2022 2021 Total average stockholders’ equity $ 398270 $ 436,191 $ 437,483 $ 492599 §$ 563,046 Less: average irta
Slide 24: ROAA and PTPP ROAA
ROAA and PTPP ROAA Non-GAAP Financial Measures (Unaudited) (Dollars in thousands, except per share data) Net income (loss) allocable to common stockholders Add: income tax provision Add: provision (reversal) of credit losses Pre-tax, pre-provision net income Total average assets Total average stockh
Slide 25: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com