Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Merger or Acquisition (June 2018)
26 slides from Equity Bancshares's merger presentation, Jun 13, 2018
Slide 1: Merger with City Bank and Trust Company
Merger with City Bank and Trust Company June 12, 2018 NASDAQ: EQBK Exhibit 99.2
Slide 2: 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 views of Equity’s management with respect to, a
Slide 3: Additional Information for Investors and Shareholders
Additional Information for Investors and Shareholders Important Additional Information The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial
Slide 4: Equity Bancshares, Inc. – About Us
As of 6/11/18 market close Per S&P Capital IQ as of 4/20/18 Non-GAAP financial measure. See the reconciliation under ‘Non-GAAP Financial Measures’ filed on May 11, 2018. 15,775,701 shares outstanding as of 5/31/18 Equity Bancshares, Inc. – About Us Recent Price(1) $40.77 Median Consensus Price Targe
Slide 5: Equity Bancshares, Inc. – Company Profile
EQBK (Nasdaq ticker) $3.9 Billion Total Assets (1) $643 Million Market Cap (2) (as of 6/11/18) Deposit franchise: Kansas (23 branches with $1,222mm in deposits)(3) Missouri (15 branches with $652mm in deposits)(3) Arkansas (5 branches with $350mm in deposits)(3) Oklahoma (5 branches with $510mm in d
Slide 6: Performance Growth in Commercial Banking Franchise
Performance Growth in Commercial Banking Franchise Commercial banking customers (~70% of loans) Three metro markets and four-state presence Manufacturing, transportation, business Strong Operating Performance Delivered earnings and EPS growth Above peer asset quality through cycles Leveraging infras
Slide 7: Pro Forma Footprint & Demographics
Unemployment Rates(1) Kansas: 3.2% Missouri: 3.3% Arkansas: 3.4% Oklahoma: 3.8% USA: 3.7% Footprint 49 branches in 26 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 Ka
Slide 8: Merger with City Bank and Trust Company (Docking Bancshares Inc.)
Merger with City Bank and Trust Company (Docking Bancshares Inc.)
Slide 9: CBT Company Overview and Selected Financial Highlights
CBT Footprint Selected Financial Highlights Overview City Bank and Trust Company is headquartered in Guymon, OK Founded in 1901 as Beaver County Bank and operates one branch in Guymon. Acquired by parent company Docking Bancshares in 2002. Attractive core deposits in stable market Expansion of South
Slide 10: Southwest Kansas / Oklahoma Panhandle Market Presence
Southwest Kansas / Oklahoma Panhandle Market Presence Logical market expansion: 220 miles west of Wichita home office and 40 miles south of 2018 Liberal expansion 38 basis point cost of deposits including 75% signature deposits(1) Texas County (Oklahoma)(2) EQBK City Bank and Trust Co. (1) City Bank
Slide 11: Guymon, Oklahoma Market
City Bank and Trust Co. is headquartered and operates one branch in Guymon, in Texas County, Oklahoma City Bank and Trust Co. market share rank: #1 (27.4%) Texas County has a median household income of $52,455, with 52% of households with income of greater than $50,000 and 18% greater than $100,000.
Slide 12: Transaction Overview
Structure EQBK to acquire 100% of City Bank and Trust Co. City Bank and Trust is expected to be merged into Equity Bank in Q4 2018 Purchase Price Deal value: Approximately $18.9 million Consideration: $18.9 million in cash Valuation Multiples P/TBV = 141% on 8.0% TCE as of 3/31/18(1) ~15.5x LTM earn
Slide 13: Financially Attractive, Low-Risk, Strategic Value
Financially Attractive Structured within EQBK’s merger metrics and discipline $0.14 EPS Accretive in 2019 and $0.17 EPS Accretive in 2020 2.8% dilutive to tangible book value with a TBV earnback of 2.75 years using the crossover method 25% IRR Low-Risk Profile Similar customer approach, credit cultu
Slide 14: Key Transaction Assumptions
Cost Savings Expected annual non-interest expense savings of approximately 30%, or $1.0 million after tax in 2019, with 100% expected to be achieved in 2019 Revenue Enhancements Identified, but none included in pro forma projections One-time Merger Related Costs Approximately $2.2 million pre-tax Lo
Slide 15: Pro Forma Financial Impact
EPS Impact ~4.6% accretive in 2019 ($0.14) ~5.1% accretive in 2020 ($0.17) Tangible Book Value Impact ~2.8% dilutive to tangible book value at close Tangible book value earn-back period estimated to be approximately 2.75 years, using the cross-over method Pro Forma Consolidated Capital(1) ~8.1% Tang
Slide 16: Loan & Deposit Composition
Loan & Deposit Composition Equity Bank Stand Alone CBT Stand Alone Combined Loan Mix Deposit Mix Total: $2,389 million Total: $2,466 million Total: $2,753 million Total: $2,893 million Yield on Loans: 5.43% Cost of Deposits: 0.38% Yield on Loans: 5.44% Cost of Deposits: 0.69% Source: S&P Capital IQ
Slide 17: Benefits to the Transaction
Shareholders Strategically and financially attractive transactions Opportunity for increased shareholder value for all companies Customers Community banking model with a focus on serving local clients Ability to provide enhanced products and services with larger lending limits Community bank market
Slide 18: Summary
City Bank and Trust joins franchise allowing for continued growth and development of products and services in community markets Seventeenth business combination since 2003, demonstrating discipline and commitment to execution in diverse range of markets Strategic acquisitions that enhance franchise
Slide 19: Supplemental Information
Supplemental Information
Slide 20: Equity Bancshares History and M&A Activity
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 Q4 2018 merger with City Bank and Trust Company ***** As reported at 3/31/18 2009 $8.8mm of TARP issued Opened 2 b
Slide 21: City Bank and Trust – Financial Highlights
City Bank and Trust – Financial Highlights Source: S&P Capital IQ Note: Bank level data used, does not adjust for S-Corp status
Slide 22: EQBK – Financial Highlights
EQBK – Financial Highlights Source: S&P Capital IQ Note: Does not include data for FNB Liberal and Adams Dairy Bank mergers that closed on May 4, 2018
Slide 23: Equity Bancshares's Professional Board
Gary Allerheiligen Accounting CPA Advisor, Retired Partner, Grant Thornton (KS) Jim Berglund Banking Bank Advisor, Retired President / CEO Sunflower Bank (KS) Brad Elliott Chairman / CEO of Equity Bancshares, Inc. (KS) Greg Kossover CFO Equity Bancshares, Former CEO, Value Place, LLC (KS) Jerry Mala
Slide 24: Senior Leadership
Senior Leadership Brad S. Elliott Chairman & Chief Executive Officer Gregory H. Kossover Chief Financial Officer Wendell L. Bontrager President, Equity Bank Craig L. Anderson Chief Operating Officer
Slide 25: Strategic Planning Team
Strategic Planning Team Team Member Role Years with EQBK Years in Banking Patrick J. Harbert EVP, Community Markets, Sales & Service 14 23 Julie A. Huber EVP, Strategic Initiatives 14 24 Craig P. Mayo EVP, Chief Credit Officer 1 34 John M. Blakeney EVP, Chief Information Officer 1 30 Rolando Mayans
Slide 26: Footprint & Target
Footprint & Target © Bank Offices, 300mm - $750mm_ A. Equity Bank Locations (48) ‘Av City Bank & Trust (1) © Bank Offices, $50mm - $300mm (393) @ Bank Offices, $750mm and up (93) (133) ote 8 Site os Soe ARKANSAS © | mcs res cars >
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