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
Exhibit 99.2 Q4 & 2016 Results Presentation January 26, 2017
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 Recent Price (1) $ 33.00 Consensus Price Target (1) $ 35.00 Tangible Book Value Per Share (5) $ 16.64 Price to 2017 consensus earnings (1),(2) 16.50 x Price to Tangible Book Value Per Share(1),(5) 1.98 x 4Q 2016 diluted earnings per share (EPS) $ 0.04 2017 EPS Consensus
Slide 5: About EQBK
About EQBK Exchange / Ticker • NASDAQ: EQBK Market Cap • 11.7 million shares outstanding / $385.5 million (1) Ownership • 100% publicly traded Total Assets • $2.19 billion ROAA / ROATCE (2) • 0.55% / 5.93% Annual Efficiency Ratio (2) • 66.7% Annual / 63.2% 4th Quarter Locations • 34 branches in Kans
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 mill
Slide 7: Prairie State Bancshares, Inc.—Overview
Prairie State Bancshares, Inc.—Overview Prairie Footprint Selected Cons. Financial Highlights (1) Total Assets $ 148,575 Gross Loans 135,437 Deposits 129,093 Loans / Deposits 104.9 % % Core Deposits(2) 65.1 Total Bank Level Equity $ 19,039 Consolidated Equity 17,501 ROAA(3) 1.42 % ROAE(3) 12.10 Net
Slide 8: 2016 Highlights
2016 Highlights • Continued development of our acquisition pipeline and announcement and regulatory approval of Strategic Prairie State Bancshares; Closing and conversion of Community First Bancshares merger Positioning • Restructured our commercial lending division • Raised $23.6 million in capital
Slide 9: EPS & ROATCE
EPS & ROATCE(1) Diluted EPS and Net Income to Common Return on Average Tangible Common Equity $14,000 12.00% $1.54 $1.50 $12,000 $1.30 10.00% $1.25 $10,000 $1.07 (%) 000s) 8.00% $ $1.00Equity ( $8,000 $0.92 $9,373 Diluted Common 9.99% Common 6.00% to EPS 9.66% $0.65 $0.75 ( $6,000 ) $ 8.27% Tangible
Slide 10: Revenue & Efficiency Ratio
Revenue & Efficiency Ratio(1) Income and Margin Efficiency Ratio & NIE/Average Assets $70,000 3.92% 74.0% 3.30% 3.85% 3.87% 4.00% 3.17% 3.75% $62,584 73.0% 3.08% 2.99% 3.10% 16% $60,000 3.65% 3.51% 72.0% $54,626 3.50% 2.74% 2.90% 3.30% 2.81% $49,049 15% $48,627 71.0% $50,000 15% 16% 2.70% Core 3.00%
Slide 11: Tangible Common Book Value
Tangible Common Book Value(1) Tangible Common Book Value per Share and Asset Growth TCBV CAGR $2,500 2012-2016: $18.00 9.4% $16.64 $15.97 $16.00 $2,000 $13.54 $14.00 $11.97 $11.60 $12.00 $2,192 $1,500 TCBV millions) $10.00 ( $ per Assets $8.00 Share $1,000 $1,586 ( ) $ Total $6.00 $1,189 $1,175 $1,1
Slide 12: Capital Position Over Time
Capital Position Over Time 18.00% 17.01% 15.87% 16.00% 13.85% 14.25% * 14.00% 13.16% 12.55% 11.77%* 12.00% 11.59% 10.00% 9.62% 9.47% 9.13% TCE/TA 8.37% Leverage Ratio 7.89% 8.00% 7.38% 7.11% Tier 1 RB Ratio 6.00% 4.00% 2.00% 0.00% 2012 2013 2014 2015 2016 * Paid off Series C preferred stock in Janua
Slide 13: Capital Summary
Capital Summary Excess Capital Priorities • All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized” 1 Attractive Acquisitions • Strong relationship with regulators at holding company and bank level • Efficiently positioned working capital, regulatory capita
Slide 14: Loan Portfolio Composition & Growth
Loan Portfolio Composition & Growth Loan Composition Loan Composition ‘12-‘16 2012 2013 2014 2015 2016 ($ in 000s) CAGR Commercial Real Estate $ 366,251 $ 341,512 $ 364,096 $ 397,017 $ 593,108 12.81% Commercial 126,771 139,365 183,100 262,032 348,465 28.76% Agricultural Real Estate 27,155 22,092 17,
Slide 15: Asset Quality
Asset Quality Nonperforming Assets NCOs / Average Loans 1.34% 1.76% 1.80% 1.33% 0.89% 1.43% $0.50 $1.54 $1.44 $0.85 $3.50 $1.19 $1.1 $0.2 0.43% $- 0.37% $7.3 $- $- $9.6 $4.8 0.21% $- $5.8 $8.7 0.16% $3.6 $13.0 0.12% 0.12% $10.2 $10.8 $8.2 $4.6 $22.7 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014
Slide 16: Core Deposit Franchise
Core Deposit Franchise Deposit Portfolio Mix Deposit Composition ‘12-‘16 2012 2013 2014 2015 2016 ($ in 000s) CAGR Time Deposits $ 400,003 $ 363,210 $ 342,160 $ 438,612 $ 553,158 8.44% Signature Deposits 593,125 584,109 639,017 777,302 1,077,293 16.09% Total Deposits $ 993,128 $ 947,319 $ 981,177 $
Slide 17: Footprint & Targets
Footprint & Targets
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 Dire
Slide 20: Strategic Planning Team
Strategic Planning Team Years with Years in Team Member Role EQBK Banking Patrick Harbert EVP, Community Markets, Sales & Service 13 22 Julie Huber EVP, Chief Credit Officer 13 23 Jennifer Johnson EVP, Chief Operations Officer 5 31 Chief Information Officer Rolando Mayans EVP, Chief Risk Officer 9 2
Slide 21: Diverse Market Segments
Diverse Market Segments Diverse market segments with economies based on transportation, manufacturing and healthcare • Top employers in the region include a diverse range of operations such as telecommunications, professional services, aircraft manufacturing, OEM manufacturing, and transportation. •
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 5,610 5,433 6,766 9,202 Net interest income 41,235 41,361 46,262 52,597 Provision for loan losses 2,583 1,200 3,047 2,
Slide 24: Selected Balance Sheet Data
Selected Balance Sheet Data Demonstrating balance sheet strength Selected Balance Sheet Data ($000s) ASSETS 12/31/2013 12/31/2014 12/31/2015 12/31/2016 Cash and cash equivalents (1) $24,615 $37,702 $62,074 $38,845 Investment securities (2) 354,107 318,314 452,362 578,093 Net loans 655,027 720,810 95
Slide 25: Capitalization
Capitalization Maintaining a strong regulatory capital position Ratio 12/31/2013 12/31/2014 12/31/2015 12/31/2016 Leverage Ratio 11.59% 9.62% 9.47% 11.80% Tier 1 Risk-Based Capital Ratio 17.01% 13.16% 13.85% 14.25% Total Risk-Based Capital Ratio 17.30% 13.86% 14.35% 14.67% Common Equity Tier-1 Capit
Slide 26: Non-GAAP reconciliations list
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, December 31, December 31, December 31, December 31, 2016 2015 2014 2013 2012 Total stockholders’ equity. $ 257,964 $ 167,233 $
Slide 28: ROATCE and Efficiency Ratio
ROATCE and Efficiency Ratio Non-GAAP Financial Measures, continued (Unaudited) As of and for the years ended (Dollars in thousands, except per share data) December 31, December 31, December 31, December 31, December 31, 2016 2015 2014 2013 2012 Total average stockholders’ equity. $ 168,822 $ 125,808
Slide 29: Equity Bancshares, Inc. investor.equitybank.com
Equity BANCSHARES, Inc. investor.equitybank.com This communication 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 curren