Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Merger or Acquisition (December 2023)
24 slides from Equity Bancshares's merger presentation, Dec 6, 2023
Slide 1: Merger with Rockhold Bancorp.
MERGER W ITH R OCKHOLD B ANCORP. December 6, 2023
Slide 2: Forward Looking Statements
EQUITY BANCSHARES 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 statements reflect the current v
Slide 3: Our Company: Equity Bancshares, Inc.
EQUITY BANCSHARES Our Company Equity Bancshares, Inc. NYSE: EQBK Corporate Snapshot • Founded In 2002, Wichita Headquartered, Midwest Franchise Start-Up: 2002 – 2007 • Seasoned Management Team Brad Elliott, Chairman and CEO, founded Equity Bancshares, Inc. in 2002 • Consistent Execution And Strategy
Slide 4: Our Value Proposition
EQUITY BANCSHARES Our Value Proposition MARKET D IVERSIFICATION A ND S TRATEGY FOR G ROWTH E XPERIENCED A ND INVESTED MANAGEMENT T EAM CONSERVATIVE CREDIT CULTURE A ND E FFECTIVE R ISK MANAGEMENT A ND MITIGATION R OBUST FUNDING CAPACITY , A NCHORED B Y A D IVERSE , L OW -COST D EPOSIT B ASE FOCUS O
Slide 5: Strong Senior Leadership Team
EQUITY BANCSHARES Strong Senior Leadership Team Brad Elliott Chairman & CEO Years in Banking: 34 Rick Sems President Years in Banking: 23 Founded Equity Bank in 2002 Served as Chief Banking Officer of First Bank St. Louis 2018 EY Entrepreneur of the Year National Finalist Former President & CEO of R
Slide 6: Long Term Key Strategic Objectives
EQUITY BANCSHARES Long Term Key Strategic Objectives Grow Tangible Book Maximize Risk Adjusted Value Return on Assets • Efficiently grow core earnings • Re-mix cash flows into higher yielding instruments funded with low-cost core deposits • Effectively deploy capital through share repurchases, divid
Slide 7: Proven Record of M&A Execution
EQUITY BANCSHARES Proven Record of M&A Execution American Community Eastman Cache City Bank & Rockhold First Ind. Prairie State Kansas Bank Adams Dairy Almena State First National Holdings, Trust Bancorp. Corp. Bancshares Corporation Bancshares State Bank Bancshares, Bancshares Bancshares Inc. Compa
Slide 8: Strategic Execution of Acquisitions
EQUITY BANCSHARES Strategic Execution of Acquisitions Platform for Best in Class 10 COMPLETED BANK 2017 Prairie State 2018 Kansas Bank Corporation 2019 2020 MidFirst Almena Bank – 3 State 2021 American State 2024 $5.41B PROFORMA Bank Branches Bank Bank ACQUISTIONS Adams Dairy Shares (SINCE IPO) Patr
Slide 9: Merger with Bank of Kirksville (Rockhold Bancorp.)
MERGER WITH BANK OF KIRKSVILLE (ROCKHOLD BANCORP.)
Slide 10: Creating Shareholder Value
EQUITY BANCSHARES Creating Shareholder Value STRUCTURED WITHIN EQBK'S PROVEN MERGER METRICS AND THROUGH A CONSISTENTLY DISCIPLINED APPROACH TO MAXIMIZE VALUE RETENTION OF KEY LOCAL MANAGEMENT TEAM MEMBERS SIMILAR CUSTOMER APPROACH, CREDIT CULTURE & OPERATING STYLE COMPREHENSIVE DUE DILIGENCE, NO CON
Slide 11: Compelling Pro Forma Financial Impact
EQUITY BANCSHARES Compelling Pro Forma Financial Impact • $0.36 accretive in 2024 – 12.0% EPS Accretion(1) • $0.45 accretive in 2025 – 14.3% (first full-year post conversion) Attractive Returns(1) • 20% + Internal Rate of Return Quick Earn-back • ~1.3 year tangible book value per share earn-back usi
Slide 12: Summary Pro Forma Financial Impact
EQUITY BANCSHARES Summary Pro Forma Financial Impact GAAP Financial Impact Non-GAAP Financial Impact Excluding AOCI and Rate Marks(1) $0.36 $0.45 $0.09 $0.15 Earnings 12.0% 14.3% 3.1% 4.8% Impact(2) 2024 2025 2024 2025 EPS Accretion EPS Accretion EPS Accretion EPS Accretion Tangible Book (3.4%) ~1.3
Slide 13: Bank of Kirksville – Overview
EQUITY BANCSHARES Bank of Kirksville – Overview Bank of Kirksville Footprint – 8 Branches Selected Financial Highlights(1) TOTAL ASSETS $ 405,681 GROSS LOANS 122,368 DEPOSITS 344,143 LOANS / DEPOSITS 35.6% % CORE DEPOSITS ( 2) 97.6% CORE ROAA ( 3) 0.99% CORE ROAE ( 3) 9.2% NET INTEREST MARGIN 2.54%
Slide 14: Bank of Kirksville – Superior Deposit Franchise
EQUITY BANCSHARES Bank of Kirksville – Superior Deposit Franchise Low Cost Highly Liquid 41.9% 38.5% 1.09% 35.7% 35.6% 1.00% 31.2% 32.0% 0.75% 0.67% 0.23% 0.27% 2018 2019 2020 2021 2022 Q3'2023 2018 2019 2020 2021 2022 Q3'2023 Cost of Deposits (%) Loans / Deposits (%) Favorable Mix Strong Quality 29
Slide 15: Pro Forma Franchise – Bolt-On Market Expansion
EQUITY BANCSHARES Pro Forma Franchise – Bolt-On Market Expansion(1) TOTAL ASSETS $5.4 74 BANKING OFFICES billion GROSS LOANS HFI EQBK (66) Bank of Kirksville (8) $3.4 billion TOTAL DEPOSITS $4.4 billion GROSS LOANS HFI / DEPOSITS 76.9% COST OF DEPOSITS 1.79% Source: S&P Global Market Intelligence. (
Slide 16: Bank of Kirksville – Kirksville Market Overview
EQUITY BANCSHARES Bank of Kirksville – Kirksville Market Overview Market Overview Bank of Kirksville is headquartered in Kirksville, Missouri and operates 8 branches in north central Missouri One of 8 financial institutions in Kirksville MSA with a market share rank of #1 (36.2%) Kirksville MSA is h
Slide 17: Transaction Overview
EQUITY BANCSHARES Transaction Overview • EQBK to acquire 100% of Rockhold BanCorp. (“Rockhold”) • Bank of Kirksville to merge into Equity Bank • 100% Cash Consideration Structure • EQBK to pay $44.3 million in cash consideration • Rockhold will pay a pre-closing one-time special cash dividend of $17
Slide 18: Key Transaction Assumptions
EQUITY BANCSHARES Key Transaction Assumptions • Identified fully phased-in cost savings of approximately $1.2 million Expected • Approximately 18.0% of Rockhold’s standalone operating non-interest expense Cost Savings • 100% realized in 2024 and thereafter • Revenue enhancements were not modeled One
Slide 19: Pro Forma Loan and Deposit Composition
EQUITY BANCSHARES Pro Forma Loan and Deposit Composition LOAN MIX Comm. RE & Multi Comm. RE & Resi. RE Resi. RE 34% Comm. RE & 24% Multi 23% 40% Multi 39% Total Loan Yield Total Loan Yield Resi. RE Total Loan Yield Cons. & 47% MRQ MRQ MRQ Cons. & Other 6.72% 6% 5.37% 6.67% Other 6% Const. & Land C&I
Slide 20: Summary
EQUITY BANCSHARES Summary EXPANDS FOOTPRINT INTO CONTIGUOUS MARKETS WITH FAVORABLE OPERATING ENVIRONMENT LOW-COST STABLE DEPOSIT FRANCHISE IN NORTH CENTRAL MISSOURI MIDDLE OF THE FAIRWAY TRANSACTION – EXCEEDS EQBK’S M&A HURDLES MEANINGFUL SIZE DRIVES INCREMENTAL VALUE WHILE APPROPRATELY SIZED FOR MI
Slide 21: Investment Portfolio Repositioning
INVESTMENT PORTFOLIO REPOSITIONING
Slide 22: Investment Portfolio Repositioning
EQUITY BANCSHARES Investment Portfolio Repositioning $442M $0.81 IMPROVES BALANCE SHEET EFFICIENCY PROVIDES SIGNIFICANT EARNINGS BENEFIT SECURITIES SOLD available-for-sale M A I N TA I N S C A P I TA L S T R E N G T H A N D 2024E ENHANCES LIQUIDITY APPROX. YIELD OF 1.33% E P S A C C R E T I O N (1)
Slide 23: Combined Financial Impact
EQUITY BANCSHARES Combined Financial Impact Expected Combined Financial Impact(1) Merger + Investment Portfolio Repositioning Earnings $1.17 $1.26 39.2% 40.2% Impact 2024 2025 EPS Accretion EPS Accretion 7.1% 8.5% Pro Forma TCE / TA Leverage Ratio Consolidated Capital(2) 12.1% 15.2% Tier 1 Ratio TRB
Slide 24: investor.equitybank.com
=| EQUITY BANCSHARES, INC. investor.equitybank.com
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