Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q4 2024 Earnings Presentation
25 slides from Equity Bancshares's earnings presentation, Jan 23, 2025
Slide 1: 2024 4th Quarter Financial Results
Exhibit 99.2 2024 4th Quarter Financial Results January 22, 2025
Slide 2: Forward Looking Statements
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 the manage
Slide 3: Company Overview
Equity Bancshares, Inc.| NYSE: EQBK Company Overview $5.3B $3.5B $4.4B $748M Assets Loans Deposits Market Cap 1 9.95% 14.51% 18.07% WICHITA TCE/TA 2 CET 1 TRBC Headquarters Strategic Execution Of Acquisitions $5.3B 26.6% Compound Annual Growth Rate3 $1.6B $380M SCALE 12 START-UP GROWTH Completed Ban
Slide 4: Leadership Team
Leadership Team Brad Elliott Rick Sems Equity Bancshares, Inc. Chairman & CEO Equity Bank CEO Years in Banking: 36 Years in Banking: 25 Founded Equity Bank in 2002 Announced as Equity Bank CEO in May 2024. Joined Equity Bank as 2018 EY Entrepreneur of the Year National Finalist President in May 2023
Slide 5: Our Value Proposition
Our Value Proposition Organic Growth Our guiding principles and Strategic Mergers & Acquisitions commitment to entrepreneurial spirit Disciplined Credit Standards are part of our longstanding framework for Effective Balance Sheet & Capital Management delivering shareholder value EPS & Tangible Book
Slide 6: Tangible Book Value Per Share
Tangible Book Value Per Share1 Tangible Book Value | IPO Walk TBVPS Ex. AOCI Since IPO, Tangible Book Value increased has increased $14.10 to $30.07 $ 33.24 AOCI Impact 8.27 % $30.07 CAGR TBVPS Ex. AOCI $ 16.26 $15.97 2015 2024 Tangible Book Value | Quarter over Quarter Walk During the quarter, Tang
Slide 7: 4th Quarter 2024 Financial Highlights
4th Quarter 2024 | Financial Highlights Highlights Earnings & Profitability 2 FY 24 Q4 24 Q3 24 Q4 23 1 Core Earnings Per Share $4.43 $1.10 $1.32 $0.81 $17.8M Tangible Book Value Per Share Core Net Income 1 1 $30.07 $69.5M $30.07 $17.8M $28.38 $20.4M $25.37 $12.5M Core Net Income 1 Net Interest Marg
Slide 8: Performance Metrics
Performance Metrics Return On Average Tangible Common Equity - Core 1 Return on Average Assets - Core 1 1.56% 19.58% 1.37% 16.89% 1.25% 1.17% 15.15% 15.29% 1.01% 13.02% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Efficiency Ratio 1 TCE / TA Excluding AOCI 1 72.69%
Slide 9: Net Income
Net Income Primary Drivers Net Interest Income Noninterest Income Noninterest Expense Net interest income totaled $49.5 million in the Noninterest income totaled $8.8 million in the Noninterest expense totaled $37.8 million in the fourth quarter, up $3.4 million from the fourth quarter, down $500 th
Slide 10: Profitability
Profitability Revenue Composition 1 Profitability Ratios 1 Noninterest Income / Operating Revenue Net Interest Income Noninterest Income 20.92% $8,818 15.44% 16.24% 16.52% 15.13% $8,985 $9,111 $11,668 $7,204 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Noninterest Income / Average Assets 0.91% 0.70% 0.70
Slide 11: Net Interest Income
Net Interest Income Primary Drivers Deposits Cost of Deposits Loan Yield Investment Yield Borrowings Noninterest-bearing Cost of total deposits Loan yield increased 4bps Loan yield increased 4bps Borrowing balances were deposits constitute 21.8% decreased 21bps and cost quarter-over-quarter, quarter
Slide 12: Strong Core Deposit Franchise
Strong Core Deposit Franchise Core Deposits 1 / Total Deposits Non-Interest Interest Core Deposits Brokered Deposits Bearing DDA Bearing DDA 4.82% 4.58% 4.70% 2.86% 21.8% 26.8% 7.44% Current Deposit Time Deposits < 95.18% 95.42% 95.30% 97.14% Composition 92.56% 100k 12.6% Time Deposits > 100k MMDA 4
Slide 13: Yield / Cost Components
Yield / Cost Components Cost Analysis Cumulative Betas Cost of Deposits Cost of IB Deposits Q4 Q1 Q2 Q3 Q4 2023 2024 2024 2024 2024 Fed Rate Change Since Beginning of 5.25% 5.25% 5.25% 5.18% 4.57% Rate Cycle – Q4 2021 2.77% 2.78% 2.85% 2.58% 2.57% Loans 50% 53% 58% 59% 67% 2.16% 2.14% 2.20% 1.98% 1.
Slide 14: Diversified Loan Portfolio
Diversified Loan Portfolio Total Loans & Yield on Loans 7.15% 6.62% 5.00% 4.77% 4.98% Commercial Real Estate 40% $3.3B $3.3B $3.5B $3.2B $2.6B Consumer 3% Current Agricultural Loan 2020 2021 2022 2023 Q4 2024 2% Commercial and Agricultural Real Composition Industrial Estate 18% 7% Real Estate Total
Slide 15: Asset Quality Trends | Quarterly
Asset Quality Trends | Quarterly Nonperforming Assets 1 , 2 Total Reserve Ratio Nonaccruals OREO & Other Repo. Assets NPAs / Assets Allowance for Credit Losses Purchase Discount 0.53% 0.49% 0.52% 0.60% 0.65% 1.35% 1.33% 1.30% 1.26% 1.29% $1.1 $7.6 0.04% 0.05% 0.04% 0.05% $0.6 0.05% $1.2 $0.8 1.31% 1
Slide 16: Asset Quality Trends | Annual
Asset Quality Trends | Annual Nonperforming Assets 1 , 2 Total Reserve Ratio Nonaccruals OREO & Other Repo. Assets NPAs / Assets Allowance for Credit Losses Purchase Discount 1.36% 1.98% 1.28% 1.65% 0.68% 1.43% $10.8 $36.4 0.65% 1.35% 1.29% 0.53% 0.12% 0.37% 0.05% 0.04% $7.6 0.05% $1.2 $0.6 1.53% $4
Slide 17: Capital Management
Capital Management THE COMPANY’S CAPITAL RATIOS ARE WELL CAPITALIZED LEVELS AS OF 12/31/2024 EQBK Well Capitalized CAPITAL PRIORITIES Maintain well capitalized regulatory levels 18.07% Capacity for organic growth 15.11% 14.51% 10.50% Merger & acquisitions 11.67% 8.50% 9.95% 7.00% Dividend payout rat
Slide 18: Outlook on Key Business Drivers
Outlook on Key Business Drivers 4 TH QUARTER 2024 FORWARD LOOKING RESULTS ESTIMATES 1 st QUARTER 2025 FY 2025E Avg. $4,243M $4,300 – 4,350M $4,300 – 4,350M $4,400 - 4,500M Deposits Avg. $3,525M $3,600 - 3,650M $3,525 - 3,600M $3,575 - 3,675M Loans Avg. $4,716M $4,775 - 4,850M $4,750 - 4,850M $4,850
Slide 19: Focus Variables for Outlook & Forecast
Focus Variables for Outlook & Forecast OUR OUTLOOK REQUIRES CLARITY AROUND CERTAIN VARIABLES, INCLUDING: ECONOMIC CUSTOMER COST OF COMPETITIVE INVESTMENT POLITICAL ENVIRONMENT NEEDS FUNDING MARKET OPPORTUNITIES ENVIRONMENT Business activity Directly related to Impacts rates on our Providing customer
Slide 20: Our Markets
Our Markets Kansas Missouri Market Rank #8 Market Rank #7 Deposits $2.5B Deposits $1.1B Deposit Market Share 4.10% Deposit Market Share 1.91% Oklahoma Arkansas Market Rank #15 Market Rank #9 Deposits $536M Deposits $317M Deposit Market Share 1.63% Deposit Market Share 2.72% Equity Bancshares, Inc. |
Slide 21: Non-GAAP Reconciliations
Non-GAAP G EQUITY Reconciliations BANCSHARES, INC.
Slide 22: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF TANGIBLE COMMON EQUITY AND RELATED MEASURES ($ in thousands, except per share data) Quarter Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Total stockholder's equity $592,918 $504,038 $461,435 $456,776 $452,860 Less:
Slide 23: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF RETURN ON AVERAGE TANGIBLE COMMON EQUITY AND EFFICIENCY RATIO ($ in thousands, except per share data) Quarter Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Total average stockholders' equity $533,227 $485,468 $455,3
Slide 24: Non-GAAP reconciliations
Non-GAAP reconciliations CALCULATIONS OF RETURN ON AVERAGE ASSETS, AVERAGE EQUITY AND OPERATING NET INCOME ($ in thousands, except per share data) Quarter Ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Net income (loss) allocable to common stockholders 16,9
Slide 25: investor.equitybank.com
@ EQUITY BANCSHARES, INC. investor.equitybank.com