Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q2 2019 Earnings Presentation
28 slides from Equity Bancshares's earnings presentation, Jul 22, 2019
Slide 1: Second Quarter 2019 Results Presentation
Second Quarter 2019 Results Presentation July 23, 2019 Exhibit 99.2
Slide 2: Disclaimers
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 15.6 million shares outstanding / $380.7 million (1) $4.18 billion Market Cap 67.4% Exchange / Ticker Total Assets Efficiency Ratio (2) Locations FTEs Loan Portfolio 52 branches in Kansas, Missouri, Arkansas and Oklahoma 627 46% of loans in commercial real estate, 21% in residential rea
Slide 4: Equity Bancshares – Share Price & Consensus Estimates
Equity Bancshares – Share Price & Consensus Estimates As of July 17, 2019 market closing. Estimates as of July 10, 2019. Based on 15,563,873 shares outstanding as of July 17, 2019. Non-GAAP financial measures. See the non-GAAP reconciliation at the end of this presentation. Share price data from S&P
Slide 5: Franchise Overview
Franchise Overview DOWNTOWN TOPEKA bepebespr’ rorexn: tren sneer eT was “Wontar ent cae amr TOPEKA ees ras suai ;oounerom ret KANSAS CITY iccmmswce WESTERN KS eoeats, wea Wamensoure sours vow Nosten wmoson sna wear ‘nest Wc wansnivoonnTown viansaw ROMAN Les WESTERN MO SOUTHWEST KANSAS LIBERAL LINCOL
Slide 6: Company history and capital activity timeline
Note: Gray shading indicates capital activity. * Data as of 12/31/2007. ** Data as of 12/31/2011. *** Data as of 12/31/2016. ****As reported for the quarter ended 6/30/2019. 2009 $8.8MM of TARP issued Opened 2 branches in Overland Park, KS 2014 Repurchased 1.3mm shares Refinanced TARP with Loan Clos
Slide 7: New for 2019: Trust & Wealth Management
New for 2019 Led by Gaylyn McGregor, EVP of Equity Trust & Wealth Management; Supported by Glen Malan, EVP Trust & Estate Advisor with 30 years of fiduciary experience and Michal Emory, Portfolio Manager with over 25 years of experience; Began booking assets in 2Q 2019. Main Office: 1565 Webb Road,
Slide 8: 2019 Second Quarter Highlights
Diluted earnings per share of $0.58 for 2Q 2019 Net income to common stockholders was $9.2 million Core net income, adjusted for merger expenses, is $9.4 million, or $0.59 per share(1) Completed repurchase of 277,806 shares of EQBK common stock. Remaining shares authorized to be repurchased are 822,
Slide 9: Operating Performance Trends
Operating Performance Trends Diluted EPS and Net Income to Common Stockholders Return on Average Tangible Common Equity(1,2) Efficiency Ratio(1,2) & Non-Interest Expense / Average Assets Income(2) and Net Interest Margin Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this
Slide 10: Tangible Book Value and Asset Growth
Tangible Book Value(1) Tangible Book Value per Share(1) and Asset Growth TBV CAGR 2015 - 2Q 2019: 5.45% Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 11: Capital Position Over Time
Capital Position Over Time IPO * Paid off Series C preferred stock in January 2016 Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. (1)
Slide 12: Total Loans by Purpose
Total Loans by Purpose(1) Gross Total Loans ($000s) $2,117,270 $2,575,408 $960,355 $1,383,605 Year-to-Date Loan Yield 5.31% 4.98% 5.43% 5.74% $2,679,985 5.77% For financial statement reporting, management considers other factors in addition to purpose when assessing risk and identifying reporting cl
Slide 13: Metro Market Organic Loan & Core Organic Deposit Growth
Metro Market Organic Loan & Bank-Wide Core Organic Deposit(1) Growth Metro Market Organic Loan Growth Since 12/31/2015 Bank-Wide Core(1) Organic Deposit Growth Since 12/31/2015 Defined as Equity signature deposits, including checking, savings, and money market accounts.
Slide 14: Asset Quality
Asset Quality Nonperforming Assets 0.89% NPAs / Assets 1.43% Net Charge-Offs (NCO)/ Average Loans $3.50 $1.19 NCO in $ ($ in millions) Nonaccrual Detail Classified Assets to Total Regulatory Capital $0.89 1.52% 1.61% $10.30 68.5% 75.9% Purchased impaired loans classified as non-accrual that are curr
Slide 15: Total Deposits
Total Deposits Total ($000s) $2,382,013 $3,123,447 $1,215,913 $1,630,451 Year-to-Date Cost of Deposits* 0.48% 0.56% 0.68% 0.96% * Includes interest and non-interest bearing deposits. $3,185,893 1.38%
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: Executive Leadership
CRAIG ANDERSON Chief Operating Officer Joined Equity Bank in March 2018 Served as President of UMBF Commercial Banking More than 31 years of banking experience Executive Leadership BRAD ELLIOTT Chairman & CEO Founded Equity Bank in 2002 Served as Regional President of Sunflower Bank prior to forming
Slide 19: Experienced Senior Team
Team Member Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service 16 24 Julie Huber EVP, Strategic Initiatives 16 25 Craig Mayo EVP, Chief Credit Officer 1 35 John Blakeney EVP, Chief Information Officer 2 31 Rolando Mayans EVP, Chief Risk Officer 13 26 Jennif
Slide 20: Diverse Market Segments
Diverse Market Segments Source: S&P Market Intelligence. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Equity Bank operates, including all completed mergers subsequent to June 30, 2018. Diverse market segments with economies based on transp
Slide 21: Market Data
Market Data Boeing Cargill Meat Solutions Cessna Aircraft Co. Spirit AeroSystems Inc. Blue Cross and Blue Shield of Kansas and Oklahoma Hill’s Pet Nutrition Goodyear Tire Co. Jostens Publishing Hallmark Cards, Inc. H&R Block Honeywell Sprint Garmin Teva DST Systems Inc. Whiteman Airforce Base Stahl
Slide 22: Selected Income Statement Data
Selected Income Statement Data Selected Income Statement Data ($000s) YTD 06/30/19 12/31/18 12/31/17 12/31/16 12/31/15 2013 Interest income $87,966 $,161,556 $,102,693 $61,799 $53,028 $46,845 Interest expense 26039 36758 16691 9202 6766 5610 Net interest income 61927 124798 86002 52597 46262 41235 P
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 06/30/19 12/31/18 12/31/17 12/31/16 12/31/15 Cash and cash equiv
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 06/30/19 12/31/18 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) As of June 30, 2019 December 31, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2012 Total stockholders’ equity $,458
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 Total stockholders’ equity $,381,487 $,374,144 $,257,964 $,167,232 Less: preferred stock 0 0 0 16,372 Less: goodwill ,103,412 ,104,907 5
Slide 28: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com