Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Stephens Bank CEO Forum 2018
32 slides from Equity Bancshares's conference presentation, Sep 26, 2018
Slide 1: Stephens Bank CEO Forum September 26, 2018
Stephens Bank CEO Forum September 26, 2018 NASDAQ: EQBK Exhibit 99.1
Slide 2: Disclaimers
Disclaimers Special Note Concerning Forward-Looking Statements This investor 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 state
Slide 3: About EQBK
NASDAQ: EQBK 15.8 million shares outstanding / $644.2 million (1) $3.9 billion 0.95% / 12.23% Annualized Market Cap 59.0% YTD Exchange / Ticker Total Assets(2) YTD ROAA / ROATCE (3) Efficiency Ratio (3) Locations(2) FTEs Loan Portfolio 49 branches in Kansas, Missouri, Arkansas and Oklahoma Approxima
Slide 4: Equity Bancshares – Share Price Performance
Equity Bancshares – Share Price Performance As of September21, 2018 market closing. Mean consensus of analyst expectations as of July 20, 2018. Estimates adjusted for merger expenses. Non-GAAP financial measures. See the non-GAAP reconciliation at the end of this presentation. Based on 15,792,695 sh
Slide 5: 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 Chief Financial Officer Has served as CFO since 2013 and as a Board Director since 20
Slide 6: Acquisition of Three Branches in Guymon and Cordell, Oklahoma from MidFirst Bank
Acquisition of Three Branches in Guymon and Cordell, Oklahoma from MidFirst Bank Announced: September 24, 2018
Slide 7: Pro Forma Footprint & Demographics
Pro Forma Footprint & Demographics EQBK MidFirst Bank Branches (3) Footprint 52 branches in 27 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 Kansas, Southeast Kansas,
Slide 8: Company history and M&A and capital activity timeline
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 **** Projected for EQBK’s acquisition of MidFirst Bank branches in Guymon and Cordell, OK ***** As reported for the six months ended 6/30/18
Slide 9: Financial Results
Financial Results
Slide 10: Diluted EPS and Net Income to Common Shareholders
Diluted EPS and Net Income to Common Shareholders
Slide 11: Return on Average Tangible Common Equity
Return on Average Tangible Common Equity(1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 12: Tangible Common Book Value and Asset Growth
Tangible Common Book Value(1) Tangible Common Book Value per Share(1) and Asset Growth 2014: Repurchase 1.3MM shares Repayment of $15.54MM of FCB TARP with a bank stock loan 2015: Acquisition of FFSL IPO TCBV CAGR 2014-2017: 9.2% 2016: Paid off SBLF Restructured term bank stock loan into LOC. Comple
Slide 13: Income and Margin
Income and Margin $120,000 3.92% $101,171 $100,000 $80,000 $67,560 $60,000 Total Revenue* ($000s) $40,000 $20,000 2014 2015 2016 2017 YTD 6/30/2018 MEEENet Interest Income ss Fee Income . (6) wBseyy 9s0109U1 ¥2N
Slide 14: Efficiency Ratio & Non-Interest Expense/Average Assets
Efficiency Ratio(1) & Non-Interest Expense/Average Assets Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 15: Capital Over Time
Capital Over Time * Paid off Series C preferred stock in January 2016
Slide 16: Total Deposits
Total Deposits Total ($000s) $2,382,013 $2,635,048 $981,177 $1,215,914 $1,630,451 Cost of Deposits* 0.43% 0.48% 0.56% 0.68% 0.82% * Includes interest and non-interest bearing deposits
Slide 17: Total Loan Growth
Total Loan Growth 0% 2014 2015 2016 2017 Acquisitions _m Organic Growth
Slide 18: Total Loans
Total Loans Total ($000s) $2,103,279 $2,411,471 $725,876 $960,355 $1,383,605 Loan Coupon 5.09% 4.66% 4.80% 4.98% 5.18% *Includes Ag. Real Estate
Slide 19: Loan and Deposit Geographic Footprint
Loan and Deposit Geographic Footprint Loan Mix by Area of Operation (as of 6/30/18) Deposit Mix by Area of Operation (as of 6/30/18)
Slide 20: Asset Quality
Asset Quality Nonperforming Assets 1.33% 0.89% NPAs / Assets 1.43% Net Charge Offs (NCO)/ Average Loans $0.85 $3.50 $1.19 NCO in $ ($ in millions) Nonaccrual Detail Classified Assets to Total Regulatory Capital Classified Assets / Equity Bank Total Regulatory Capital $0.89 1.52% 1.23% $0.33 67.1% 63
Slide 21: M&A Strategy
M&A Strategy
Slide 22: Footprint & Target M&A Criteria
Footprint & Target M&A Criteria Sustainable core profitability Management accountability & continuation Capacity to achieve mass in market > 3% EPS accretion in the first full year Capacity to generate low cost funding There are over 500 banks with deposits less than $750mm in our operating market.
Slide 23: Proven Track Record of Executing on M&A
Proven Track Record of Executing on M&A Since July 2015, EQBK has announced and integrated 8 whole bank acquisitions First Independence Corp. Community First Bancshares Prairie State Bancshares Eastman National Bancshares Cache Holdings, Inc. Kansas Bank Corporation Adams Dairy Bancshares City Bank
Slide 24: Demonstrated Value Creation for Community First Shareholders
(a) EQBK Stock Price: $21.58 $40.79 $22.94 $26.59 (b) Merger Exchange Ratio: 7.261 7.261 7.261 7.261 (a x b) Ex. Ratio Adjusted Value: $156.69 $296.18 $166.57 $193.07 PIPE $32.50 (12/20/2016) Increase in Community First Value – At Announcement + Today *Analysis does not include any additional value
Slide 25: Appendix
Appendix
Slide 26: Selected Income Statement Data
Selected Income Statement Data Delivering earnings growth YTD 6/30/2018 Selected Income Statement Data ($000s) 2014 2015 2016 2017 2018 YTD Interest income $46,794 $53,028 $61,799 $,102,693 $72,954 Interest expense 5433 6766 9202 16691 14247 Net interest income 41361 46262 52597 86002 58707 Provisio
Slide 27: Selected Balance Sheet Data
Selected Balance Sheet Data Demonstrating balance sheet strength Includes interest-bearing deposits in other banks (2) Includes Federal Reserve Bank and Federal Home Loan Bank stock Selected Balance Sheet Data ($000s) ASSETS 42004 42369 42735 43100 43281 Cash and cash equivalents (1) $37,702 $62,074
Slide 28: Capitalization
Capitalization (1) Total common equity less goodwill and intangibles divided by shares outstanding as of period end. Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Maintaining a strong regulatory capital position Ratio 42004 42369 42735 43100 43281 Lever
Slide 29: 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 30: 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 years ended (Dollars in thousands, except per share data) June 30, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2014 December 31,2012 Total stockholders’ equity $,433,282 $,
Slide 31: ROATCE and Efficiency Ratio
ROATCE and Efficiency Ratio Non-GAAP Financial Measures (Unaudited) Years Ended December 31, (Dollars in thousands, except per share data) Mar. 2018 2017 2016 2015 2014 Total stockholders’ equity $,381,487 $,374,144 $,257,964 $,167,232 $,117,729 Less: preferred stock 0 0 0 16,372 16,359 Less: goodwi
Slide 32: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investot.equitybank.com