Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q4 2016 Earnings Presentation
29 slides from Equity Bancshares's earnings presentation, Jan 26, 2017
Slide 1: Q4 & 2016 Results Presentation
Q4 & 2016 Results Presentation January 26, 2017 Exhibit 99.2
Slide 2: Disclaimers: Special Note Concerning Forward-Looking Statements
Disclaimers Special Note Concerning 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 ref
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 January 18, 2017 market closing Consensus of 2017 analyst earnings expectations as of January 2017 reported as $2.00 per share Consensus of 2018 analyst earnings expectations as of January 2017 reported as $2.19 per share Based on 11,680,308 shares outstanding as o
Slide 5: About EQBK
NASDAQ: EQBK 11.7 million shares outstanding / $385.5 million (1) 100% publicly traded $2.19 billion 0.55% / 5.93% Annual Market Cap 66.7% Annual / 63.2% 4th Quarter Exchange / Ticker Ownership Total Assets ROAA / ROATCE (2) Efficiency Ratio (2) Locations FTEs Loan Portfolio 34 branches in Kansas, M
Slide 6: Footprint and Demographics
Footprint and Demographics Footprint 37 branches in 23 counties across 3 states(1) Strong strategic positioning, with branches along I-70 and I-35 Branches clustered around key areas such as Wichita, Topeka, Kansas City, and Northern Arkansas Total population in current footprint of 2.1 million Medi
Slide 7: Prairie State Bancshares, Inc. - Overview
Prairie State Bancshares, Inc. - Overview Prairie Footprint Selected Cons. Financial Highlights (1) Dollars in thousands. Source: SNL Financial Data included in Selected Financial Highlights is at the consolidated level at or for the last twelve months ended 6/30/2016, unless otherwise noted; per SN
Slide 8: 2016 Highlights
Continued development of our acquisition pipeline and announcement and regulatory approval of Prairie State Bancshares; Closing and conversion of Community First Bancshares merger Restructured our commercial lending division Raised $23.6 million in capital for continued growth Total Assets at Dec. 3
Slide 9: EPS & ROATCE
EPS & ROATCE(1) Diluted EPS and Net Income to Common Return on Average Tangible Common Equity Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.
Slide 10: Revenue & Efficiency Ratio
Revenue & Efficiency Ratio(1) 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 $62,584 * Excluding gains on sales of securities and acquisition costs. Non-GAAP financial measure. See the non-GAAP reconciliation at the end
Slide 11: Tangible Common Book Value
Tangible Common Book Value(1) 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 2012-2016: 9
Slide 12: Capital Position Over Time
Capital Position Over Time $17.2mm Share Repurchase (13.0% of 2013 Tier 1 Common) IPO * Paid off Series C preferred stock in January
Slide 13: Capital Summary and Excess Capital Priorities
Share Buybacks Attractive Acquisitions Common Dividends Capital Summary Excess Capital Priorities Total Capital Composition ($M) Capital Ratios All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized” Strong relationship with regulators at holding company an
Slide 14: Loan Portfolio Composition & Growth
Loan Portfolio Composition & Growth Loan Composition Loan Composition 2012 2013 2014 2015 2016 '12-'16CAGR ($ in 000s) Commercial Real Estate $,366,251 $,341,512 $,364,096 $,397,017 $,593,108 0.1280769898110623 Commercial ,126,771 ,139,365 ,183,100 ,262,032 ,348,465 0.28761139651749623 Agricultural
Slide 15: 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 = 64% C&I = 36% ($ in millions) Classified Asset
Slide 16: Core Deposit Franchise
Core Deposit Franchise Deposit Portfolio Mix Deposit Portfolio Mix Deposit Composition 2012 2013 2014 2015 2016 '12-'16CAGR ($ in 000s) Time Deposits $,400,003 $,363,210 $,342,160 $,438,612 $,553,158 8.441742464521651E-2 Signature Deposits ,593,125 ,584,109 ,639,017 ,777,302 1,077,293 0.160905588975
Slide 17: Footprint & Targets
Footprint & Targets ta Je sor @ MISS! i #
Slide 18: Appendix
Appendix
Slide 19: 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 20: Strategic Planning Team
Strategic Planning Team Team Member 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 Officer 9 2
Slide 21: Diverse Market Segments
Diverse Market Segments Source: SNL Financial, Market Share Data as of June 30, 2016. Employment Data as of November 30, 2016. Operating Market includes all counties in which Equity Bancshares has deposit market share, excludes Prairie State Bancshares, Inc.. Equity Bancshares announced the currentl
Slide 22: Market Data Demographics
Market Data Demographics Kansas Missouri Arkansas National Current Population (2016) 2,926,377 6,113,275 2,994,495 325,139,271 Historical Population Change (2010-2017) 2.6% 2.1% 2.7% 5.3% Median Household Income (2017) $55,420 $50,681 $44,271 $57,462 Projected Household Income Change (2017-2022) 6.9
Slide 23: Selected Income Statement Data
Selected Income Statement Data Delivering earnings growth Selected Income Statement Data ($000s) 2013 2014 2015 2016 Interest income $46,845 $46,794 $53,028 $61,799 Interest expense 5610 5433 6766 9202 Net interest income 41235 41361 46262 52597 Provision for loan losses 2583 1200 3047 2119 Net inte
Slide 24: 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 41639 42004 42369 42735 Cash and cash equivalents (1) $24,615 $37,702 $62,0
Slide 25: Capitalization
Capitalization Source: SNL Financial and company documents (1) Total common equity less goodwill and intangibles divided by shares outstanding as of period end Maintaining a strong regulatory capital position Ratio 41639 42004 42369 42735 Leverage Ratio 0.1159 9.6199999999999994E-2 9.470000000000000
Slide 26: 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 27: 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) December 31, 2016 December 31,2015 December 31,2014 December 31,2013 December 31,2012 2011 Total stockholders’ equity $,257,964 $,167,233 $,
Slide 28: 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,
Slide 29: Equity Bancshares, Inc.
EQUITY BANCSHARES, INC. investor.equitybank.com