Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q3 2016 Earnings Presentation
29 slides from Equity Bancshares's earnings presentation, Oct 20, 2016
Slide 1: Q3 Results Presentation
Q3 Results Presentation October 20, 2016 Exhibit 99.2
Slide 2: Disclaimers: Forward-Looking Statements
Disclaimers FORWARD-LOOKING STATEMENTS The following information 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 reflect the current
Slide 3: Disclaimers: Important Additional Information
Disclaimers 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 consider Equity’s public filings with the
Slide 4: Equity Bancshares – About Us
Equity Bancshares – About Us As of October 17, 2016 market closing Consensus of 2016 analyst earnings expectations as of October 17, 2016 reported as $1.50 per share Consensus of 2017 analyst earnings expectations as of October 17, 2016 reported as $2.00 per share; includes impact of Community First
Slide 5: About EQBK
NASDAQ: EQBK 8.2 million shares outstanding / $211.2 million (1) 100% publicly traded $1.56 billion 0.72% / 8.93% YTD Market Cap 68.1% YTD Exchange / Ticker Ownership Total Assets ROAA / ROATCE Efficiency Ratio Locations FTEs Loan Portfolio 29 branches in Kansas and Missouri; 5 branches to be added
Slide 6: Footprint and Demographics
Footprint and Demographics Footprint 34 branches in 20 counties(1) Strong strategic positioning, with branches along I-70 and I-35 Branches clustered around key areas such as Wichita, Topeka, Kansas City, and Northern Arkansas(1) Total population in current footprint of 2.1 million Median household
Slide 7: Community First Bancshares
Community First Bancshares Community First Footprint Selected Financial Highlights (1) Dollars in thousands Source: Company documents and SNL Financial Data in the Selected Financial Highlights is unaudited consolidated data as of or for the six month period ended 6/30/2016, unless otherwise noted.
Slide 8: 2016 YTD Highlights
$9.0 million net income allocable to common stockholders 17.6% growth over YTD Sept. 2015 Efficiency ratio of 68.1%, compared to 66.2% at YTD Sept. 2015 Total Assets at Sept. 30, 2016 of $1.6 billion; Total Loans of $956 million, year-over-year growth 12% Total Deposits of $1.2 billion, year-over-ye
Slide 9: EPS & ROATCE
EPS & ROATCE(1) Diluted EPS and Net Income to Common Return on Average Tangible Common Equity * Annualized Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 10: Revenue & Efficiency Ratio
Revenue & Efficiency Ratio(1) Efficiency Ratio & NIE/Average Assets Income and Margin 84% 85% 84% 85% 84% 16% 15% 16% 15% 16% $30,393 $48,627 $49,049 $54,626 $29,623 * Excluding gains on sales of securities and acquisition costs. Non-GAAP financial measure. See the non-GAAP reconciliation at the end
Slide 11: Tangible Common Book Value
Tangible Common Book Value(1) Tangible Common Book Value per Share and Asset Growth 2012: Completion of FCB acquisition. $20.4MM capital raised to fund FCB. 2014: Repurchase 1.3MM shares. Repayment of $15.54MM of FCB TARP with a Bank stock loan. 2015: Acquisition of FFSL. IPO. TCBV CAGR 2012-2015: 1
Slide 12: Capital Position Over Time
Capital Position Over Time $17.2mm Share Repurchase (13.0% of 2013 Tier 1 Common) IPO * Paid off Series C preferred stock in January
Slide 13: Capital Summary and Excess Capital Priorities
Share Buybacks Attractive Acquisitions Common Dividends Capital Summary Excess Capital Priorities Total Capital Composition ($M) Capital Ratios All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized” Strong relationship with regulators at holding company an
Slide 14: Loan Portfolio Composition & Growth
Loan Portfolio Composition & Growth Loan Composition Loan Composition 2012 2013 2014 2015 Q3 2016 '12-'15CAGR ($ in 000s) Commercial Real Estate $,366,251 $,341,512 $,364,096 $,397,017 $,417,496 2.7251446328598883E-2 Commercial ,126,771 ,139,365 ,183,100 ,262,032 ,234,977 0.27382999733306268 Agricul
Slide 15: Asset Quality
Asset Quality Nonperforming Assets 1.34% 1.76% 1.80% 1.33% NPAs / Assets 0.89% NCOs / Average Loans $0.50 $1.54 $1.44 $0.85 $3.50 NCO in $ ($ in millions) Commercial Loans Outstanding by Concentrations Classified Assets to Total Regulatory Capital CRE = 65% C&I = 35% ($ in millions) Classified Asset
Slide 16: Core Deposit Franchise
Core Deposit Franchise Deposit Portfolio Mix Deposit Composition ($ in 000s) Time Deposits 400,003 $ 363,210 $ 342,160 $ 438,612 $ 437,109 $ 3.12% Signature Deposits 593,125 584,109 639,017 777,302 740,623 9.43% Total Deposits 993,128 $ 947,319 $ 981,177 $ 1,215,914 $ 1,177,732 $ 6.98% Cost of Depos
Slide 17: Footprint & Targets
Footprint & Targets — KLAHOMA i ‘i © Target Assets $Somms300mm |
Slide 18: Appendix
Appendix
Slide 19: 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 EVP, Chief Financial Officer Has served as CFO since 2013 and as a Board Director sin
Slide 20: Strategic Planning Team
Strategic Planning Team Strategic Planning Team Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service 13 22 Julie Huber EVP, Chief Credit Officer 13 23 Jennifer Johnson EVP, Chief Operations Officer Chief Information Officer 5 31 Rolando Mayans EVP, Chief Risk
Slide 21: Diverse Market Segments
Diverse Market Segments Source: SNL Financial, Market Share Data as of June 30, 2015 * Operating Market includes all counties in which Equity Bancshares has deposit market share, excludes Community First Bancshares, Inc.. Equity Bancshares announced the currently pending acquisition of Arkansas-base
Slide 22: Market Data Demographics
Market Data Demographics Kansas Missouri Arkansas(1) National Current Population (2016) 2,919,372 6,091,286 2,980,520 322,431,073 Historical Population Change (2011-2016) 1.9% 1.3% 1.6% 3.8% Median Household Income (2016) $54,275 $49,314 $43,316 $49,726 Household Income Change (2011-2016) 13.5% 9.6%
Slide 23: Selected Income Statement Data
Selected Income Statement Data Delivering earnings growth Selected Income Statement Data ($000s) 2013 2014 2015 YTD 2016 Interest income $46,845 $46,794 $53,028 $43,492 Interest expense 5610 5433 6766 6558 Net interest income 41235 41361 46262 36934 Provision for loan losses 2583 1200 3047 1359 Net
Slide 24: Selected Balance Sheet Data
Selected Balance Sheet Data Demonstrating balance sheet strength Selected Balance Sheet Data ($000s) ASSETS 41639 42004 42369 42643 Cash and cash equivalents $24,615 $37,702 $62,074 $26,842 Investment securities 354107 318314 452640 452306 Net loans 655027 720810 958353 953061 Other assets 106148 97
Slide 25: Capitalization
Capitalization Source: SNL Financial and company documents (1) Total common equity less goodwill and intangibles divided by shares outstanding as of period end Maintaining a strong regulatory capital position Ratio 41639 42004 42369 42643 Leverage Ratio 0.1159 9.6199999999999994E-2 9.470000000000000
Slide 26: 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 27: 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 nine months ended As of and for the years ended (Dollars in thousands, except per share data) Sept 30, 2016 December 31,2015 December 31,2014 December 31,2013 December 31,2012 2011 Total stockholder
Slide 28: 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 2014 2013 2012 2011 Total stockholders’ equity $,167,232 $,167,232 $,117,729 $,139,873 $,138,169 $80,816 Less: preferred stock 16,372 16,372 16,359 31,
Slide 29: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com