Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Investor Presentation (September 2016)
32 slides from Equity Bancshares's investor presentation, Sep 20, 2016
Slide 1: Investor Presentation September 20, 2016
Investor Presentation September 20, 2016 Exhibit 99.1
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 does not constitute an offer to sell or the solicitation of an offer to buy any securities. Investors and security holders are urged to carefully review and consider Equity’s public filings with the SEC, including but not limited to its
Slide 4: Equity Bancshares – About Us
Equity Bancshares – About Us As of September 15, 2016 market closing. Consensus of 2016 analyst earnings expectations as of September 15, 2016 reported as $1.50 per share. Consensus of 2017 analyst earnings expectations as of September 15, 2016 reported as $2.00 per share; includes impact of Communi
Slide 5: About EQBK
NASDAQ: EQBK 8.2 million shares outstanding / $211.9 million 100% publicly traded $1.54 billion 0.76% / 9.54% YTD Annualized Market Cap 66.1% YTD Exchange / Ticker Ownership Total Assets ROAA / ROATCE Efficiency Ratio Locations FTEs Loan Portfolio 29 branches; 5 branches to be added in Northern Arka
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 areas such as Wichita, Topeka, Kansas City, and Northern Arkansas(1) Total population in current footprint of 2.1 million Median household inco
Slide 7: Community First Bancshares
Community First Bancshares Branch 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
Slide 8: 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. Equity Bancshares announced the currently pending acquisition of Arkansas-based Comm
Slide 9: 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 10: Deposit Market Share – Key Markets
Deposit Market Share – Key Markets Wichita MSA Kansas City MSA Hays MSA Warrensburg MSA Source: SNL Financial, Market Share Data as of June 30, 2015
Slide 11: Deposit Market Share – Key Markets (continued)
Deposit Market Share – Key Markets (continued) Topeka MSA Sedalia MSA Coffeyville MSA Marshall MSA Source: SNL Financial, Market Share Data as of June 30, 2015 5
Slide 12: 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 13: 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 14: Peer Comparison
Peer Comparison LTM Core ROATCE(1) (%) LTM Net Interest Margin (%) LTM Efficiency Ratio (5) (%) TCE / TA(2) (5) (%) NPAs / Assets(3) (%) LLR / NPLs(4) (%) Note: Data as of June 30, 2016. Source: SNL Financial Peer institutions include: FMNB, FBIZ, FFKT, MCBC, MFSF, LCNB, HWBK and FCFP Core return on
Slide 15: Q2 Results Presentation July 22, 2016
Q2 Results Presentation July 22, 2016
Slide 16: 2016 YTD Highlights
$6.3 million net income allocable to common stockholders 28% growth over YTD June, 2015 Efficiency ratio of 66.07%, compared to 66.72% at YTD June 2015 Total Assets at June 30, 2016 of $1.5 billion; Total Loans of $980 million, year-over-year growth 18% Total Deposits of $1.2 billion, year-over-year
Slide 17: EPS & ROATCE
EPS & ROATCE Diluted EPS and Net Income to Common Return on Average Tangible Common Equity * Annualized 1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 18: Revenue & Efficiency Ratio
Revenue & Efficiency Ratio 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 (1) (1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end o
Slide 19: Tangible Common Book Value
Tangible Common Book Value 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: 11.2
Slide 20: Capital Position Over Time
Capital Position Over Time $17.2mm Share Repurchase (13.0% of 2013 Tier 1 Common) IPO * Paid off Series C preferred stock in January
Slide 21: Loan Portfolio Composition & Growth
Loan Portfolio Composition & Growth Loan Composition Loan Composition Loan Composition 2012 2013 2014 2015 Q2 2016 '12-'15CAGR ($ in 000s) Commercial Real Estate $,366,251 $,341,512 $,364,096 $,397,017 $,413,499 2.7251446328598883E-2 Commercial ,126,771 ,139,365 ,183,100 ,262,032 ,253,468 0.27382999
Slide 22: 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 = 60% C&I = 37% ($ in millions) Classified Asset
Slide 23: Core Deposit Franchise
Core Deposit Franchise Deposit Portfolio Mix Deposit Portfolio Mix Deposit Composition 2012 2013 2014 2015 Q2 2016 '12-'15CAGR ($ in 000s) Time Deposits $,400,003 $,363,210 $,342,160 $,438,612 $,443,599 3.1190935923231189E-2 Signature Deposits ,593,125 ,584,109 ,639,017 ,777,302 ,753,168 9.432885763
Slide 24: Footprint & Targets
Footprint & Targets
Slide 25: Appendix
Appendix
Slide 26: Wichita Overview
Wichita Overview Major Employers Cessna Aircraft Co. Spirit AeroSystems Inc. Hawker Beechcraft Via Christi Health Boeing Cargill Meat Solutions Koch Industries Inc. Cox Communications Highlights Population: 642,000 Major Industries: Aviation, Healthcare Gross Metro Product: $28.3 billion Median Hous
Slide 27: Kansas City Overview
Kansas City Overview Major Employers Hallmark Cards, Inc. H&R Block Honeywell Sprint Garmin DST Systems Inc. Ford St. Luke’s-Shawnee Mission Health Systems Highlights Population: 2,072,000 Major Industries: Agribusiness, Federal Government Gross Metro Product: $109.5 billion Median Household Income:
Slide 28: Topeka Overview
Topeka Overview Major Employers State of Kansas Topeka USD #501 Stormont-Vail HealthCare Blue Cross and Blue Shield of Kansas Payless Shoe Source Hill’s Pet Nutrition Goodyear Tire & Rubber Co. Jostens Printing and Publishing Highlights Population: 234,000 Major Industries: Government, Education Gro
Slide 29: Johnson County, MO Overview
Johnson County, MO Overview Major Employers Whiteman Airforce Base University of Central Missouri Stahl Specialty Co. Western Missouri Medical Center EnerSys Inc. G.E. Transportation Systems Swisher Mower and Machine Carlyle Van Lines Highlights Population: 54,579 Major Industries: Healthcare, Educa
Slide 30: Non-GAAP reconciliations: list of calculations
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 31: 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 six months ended As of and for the years ended (Dollars in thousands, except per share data) June 30, 2016 December 31,2015 December 31,2014 December 31,2013 December 31,2012 2011 Total stockholders
Slide 32: 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,
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