Equity Bancshares, Inc. · NYSE:EQBK
Equity Bancshares — Q3 2022 Earnings Presentation
23 slides from Equity Bancshares's earnings presentation, Oct 18, 2022
Slide 1: Third Quarter 2022 Earnings Presentation
Third Quarter 2022 Earnings Presentation 10/19/2022 Exhibit 99.2
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: Our Company: Committed to our Entrepreneurial Spirit
Our Company Committed to our Entrepreneurial Spirit Equity Bancshares, Inc. NASDAQ: EQBK Start-Up: 2002 - 2007 Brad Elliott, current Chairman and CEO, founded Equity Bancshares, Inc. in 2002. Completed 5 branch or whole bank acquisitions Opened 2 branches in Missouri Growth: 2008 - 2016 Opened branc
Slide 4: Q3 2022 Financial Highlights
Q3 2022 Financial Highlights Net Income $15.2M Diluted EPS $0.93 Total Deposits $4.2B Gross Loans $3.3B Core revenue growth lead by expanding NIM Diluted EPS of $0.93, adjusted diluted EPS of $0.94(1) Net Income of $15.2 million, adjusted net income of $15.3 million(1) Total revenue of $50.9 million
Slide 5: Core Earnings per Share Quarterly Results
Core Earnings per Share Quarterly Results Utilizes the quarterly effective tax rate.
Slide 6: Net Interest Margin
Net Interest Margin Key Net Interest Margin Drivers Non-Interest Bearing Deposits Non-interest bearing deposits now constitute 28.8% of total deposits. Loan / Deposit ratio increased each of the last four periods Day Count Day count in Q3 2022 vs Q2 2022 increased net interest income roughly $456 th
Slide 7: Revenue Trends Quarterly Results
Revenue Trends Quarterly Results Excludes the impact of PPP loans. Including these balances in the third and fourth quarter 2021 and first, second and third quarter 2022 results would be 3.86%, 3.13%, 3.38%, 3.39% and 3.62% respectively. Excludes the impact of PPP loans. Including these balances in
Slide 8: Performance Metrics
Performance Metrics Return on Tangible Common Equity(1) Efficiency Ratio(1) Non-GAAP financial measure. Refer to the non-GAAP reconciliation at the end of this presentation. Pre-Tax, Pre-Provision ROAA(1) TCE / TA excluding AOCI(1)
Slide 9: Strong Core Deposit Franchise
Strong Core Deposit Franchise Current Deposit Composition Core Deposits(1) / Total Deposits Trending Deposit Composition & Loan to Deposit Ratio Core deposits excludes time deposits > $100K. Dollars in millions. Cost of Deposits 0.20% 0.18% 0.16% 0.20% 0.41%
Slide 10: Asset Quality Trends – Annual
Asset Quality Trends – Annual Nonperforming Assets Net Charge-Offs (NCO) / Average Loans Includes loans 90+ days past due which are not highlighted in the table. Excludes Bank owned branch assets, totaling $4.2M, classified as Other Real Estate Owned within the Statements of Condition. (1,2) (2) Tot
Slide 11: Asset Quality Trends - Quarterly
Asset Quality Trends - Quarterly Nonperforming Assets Net Charge-Offs (NCO) / Average Loans Includes loans 90+ days past due which are not highlighted in the table. Excludes Bank owned branch assets, totaling $4.2M, classified as Other Real Estate Owned within the Statements of Condition. (1,2) (2)
Slide 12: Diversified Loan Portfolio
Diversified Loan Portfolio Quarter-to-Date Loan Yield 4.56% 4.54% 4.20% 4.54% For financial statement reporting, management considers other factors in addition to purpose when assessing risk and identifying reporting classes. As such, the above is not intended to reconcile to the Company’s loan disc
Slide 13: Allowance for Credit Loss (ACL)
Allowance for Credit Loss (ACL) ACL intra-quarter movement Loan Classification ACL Loans ACL / Loans (%) Commercial Real Estate 20,348 1,655,646 1.23% Commercial & Industrial 13,416 607,722 2.21% Residential Real Estate 7,260 573,431 1.27% Agricultural Real Estate 1,048 200,415 0.52% Agricultural 2,
Slide 14: Current Investment Portfolio Mix
Current Investment Portfolio Mix We believe the structure in the portfolio outperforms peers through the cycle Portfolio average life is shorter than peer; effective duration equal to peer and hard final maturities of our bullet investments provide guaranteed cash flow Portfolio is fully extended; f
Slide 15: Tangible Book Value
Tangible Book Value Tangible book value per share(1) decreased $1.83 in Q3 2022, due to unrealized losses in the investment portfolio Non-GAAP financial measure. Refer to the non-GAAP reconciliation at the end of this presentation.
Slide 16: Capital Management
Capital Management Capital Management Strategy Capital Targets EQBK establishes capital targets based on the following objectives: Maintain designation as a “well capitalized” institution under fully phased-in Basel III regulatory definitions Ensure capital levels are commensurate with the Company’s
Slide 17: Outlook on Key Business Drivers
Outlook on Key Business Drivers Consideration & Expectations Continued uncertainty of inflation, supply chain disruption and input cost escalation. Focus on continued balance sheet strength and security while continuing to pursue growth. NOTE: Figures presented in this outlook represent forward-look
Slide 18: Focus Variables for Outlook & Forecast
Focus Variables for Outlook & Forecast Our outlook requires clarity around certain variables, including: Economic Environment Business activity creates opportunity for lending and deposit growth. Pandemic response and resolution will be significant driver. Customer Needs Directly related to credit q
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations
Slide 20: TCE to TA and Tangible Book Value per Share
TCE to TA and Tangible Book Value per Share
Slide 21: ROATCE and Efficiency Ratio
ROATCE and Efficiency Ratio Non-GAAP Financial Measures (Unaudited) (Ooliars in thousands, except per share data) “Total average stockholders‘ equity Less: average intangible assets ‘Avorage tangible common equity Not income (oss) allocable to common stockholders ‘Add: amortization of intangible ass
Slide 22: ROAA and PTPP ROAA
ROAA and PTPP ROAA Non-GAAP Financial Measures (Unaudited) (Dollars in thousands, except per share data) Nat income (oss) alocable to common stockholders ‘Ada: income taxprovision ‘Add: provision (eversal of ceditiosses Pre-tax, pre-provision net income Totalaverage assats Totalaverage stockholders‘
Slide 23: Equity Bancshares, Inc.
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