eqbk-8k_20180419.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): April 19, 2018

 

EQUITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

Kansas

001-37624

72-1532188

(State or other jurisdiction of

incorporation or organization)

(Commission

File Number)

(I.R.S. Employer

Identification No.)

7701 East Kellogg Drive, Suite 300

Wichita, KS

 

 

67207

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: 316.612.6000

 

Former name or former address, if changed since last report: Not Applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

1


Item 2.02Results of Operations and Financial Condition.

 

On April 19, 2018, Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter ended March 31, 2018. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.

 

The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

Item 7.01Regulation FD Disclosure.

 

The Company intends to hold an investor call and webcast to discuss its financial results for the first quarter ended March 31, 2018 on Friday, April 20, 2018, at 9:00 a.m. Central Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the first quarter ended March 31, 2018 and is furnished as Exhibit 99.2 and is incorporated by reference herein.

 

The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

Item 8.01Other Events.

 

The only information contained in this Form 8-K being filed for the purposes of Rule 425 of the Securities Act is the information relating solely to the proposed mergers between the Company and each of Kansas Bank Corporation and Adams Dairy Bancshares, Inc. contained in the press release and investor presentation furnished herewith as Exhibit 99.1 and 99.2.

 

Item 9.01Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.

 

Description

99.1

 

Earnings Press Release, dated April 19, 2018

99.2

 

Equity Bancshares, Inc. Investor Presentation

 

 

 

 

2


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Equity Bancshares, Inc.

 

 

Date: April 19, 2018

By: /s/ Gregory H. Kossover

 

Gregory H. Kossover

 

Executive Vice President and Chief Financial Officer


3

eqbk-ex991_11.htm

Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

Equity Bancshares, Inc. Announces Record Net Income for First Quarter 2018

Integrates Recent Oklahoma Markets of Ponca City, Newkirk and Tulsa;

Prepares for Completion of First National Bank of Liberal/Hugoton and Adams Dairy Bank Mergers

 

WICHITA, Kansas, April 19, 2018 (GLOBE NEWSWIRE) – Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “we”, “us”, “our”), the Wichita-based holding company of Equity Bank, reported its unaudited results for the quarter ended March 31, 2018, including net income allocable to common stockholders for the quarter of $8.7 million, or $0.58 per diluted share.

 

Brad Elliott, Chairman and CEO of Equity, said, “We continue to focus on serving as a trusted community bank in our 40-plus bank offices in four states, while adding new communities to our footprint and new talented bankers to our team.  In the first quarter, our commercial, mortgage, treasury and retail sales teams worked diligently and effectively to spur organic growth in our markets, including our newest locations in Ponca City, Newkirk and Tulsa.  We’ve also added key positions throughout our operations, sales and management teams and we’ll continue to focus on organic growth for our customers and communities.”

 

Mr. Elliott continued, “Our new markets in Liberal, Hugoton and Blue Springs are tremendous cultural fits for our Company and we’ll continue to uphold their exemplary service and community focus in the future.  I am proud of each and every one of our Equity Bank operations, sales and service teams, who work swiftly, intelligently and with great purpose to fulfill our mission of offering sophisticated, customized banking solutions in a diverse group of markets, with an emphasis on local decision making.”

 

Notable Items:

 

 

-

Income before taxes for the first quarter of 2018 was $11.2 million, or $0.75 per diluted share, compared to $6.9 million, or $0.57 per diluted share, for the same time period in 2017.  Income before taxes, adjusted to exclude merger expense, was a record $11.8 million, or $0.79 per diluted share, for the first quarter of 2018, compared to $7.8 million, or $0.65 per diluted share, for the first quarter of 2017.

 

-

Stated diluted earnings per share in the first quarter of 2018 was a record $0.58.  Merger expenses, adjusted for estimated income tax, were $412 thousand in the first quarter of 2018, or $0.03 per diluted share.  

 

-

Net income allocable to common stockholders, adjusted for after-tax merger expense, was a record $9.1 million, or $0.61 per diluted share in the first quarter of 2018, compared to 2017 first quarter net income allocable to common stockholders, adjusted for after-tax merger expense, of $5.5 million, or $0.46 per diluted share.

 

Highlights of Equity’s growth include:

 

 

-

Total loans held for investment of $2.13 billion at March 31, 2018, as compared to total loans held for investment of $2.10 billion at December 31, 2017.

 

-

Total deposits were $2.37 billion at March 31, 2018, and $2.38 billion at December 31, 2017.  Signature Deposits, or core deposits comprised of checking accounts, savings accounts, and money market accounts, were $1.65 billion at March 31, 2018, compared to $1.61 billion at December 31, 2017.  

 

-

Total assets of $3.18 billion at March 31, 2018, compared to $3.17 billion at December 31, 2017.

 

-

Book value per common share of $26.09 at March 31, 2018 and $25.62 at December 31, 2017. Tangible book value per common share of $18.22 at March 31, 2018 and $17.61 at December 31, 2017.

 

On March 27, 2018, Equity announced the regulatory and shareholder approvals of mergers with Kansas Bank Corporation (“KBC”), parent company of First National Bank of Liberal, Kansas, and Adams Dairy Bancshares, Inc. (“Adams”), parent company of Adams Dairy Bank in Blue Springs, Missouri.  Equity announced each merger on December 18, 2017, and the Company expects each transaction to close on May 4, 2018.  The mergers with KBC and Adams will be the sixth and seventh since the Company’s initial public offering in November 2015 and Equity will have completed 17 business combinations since 2003.

 

 

1


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

After the mergers, Equity will operate 48 bank locations in four states, adding five bank offices in Southwest Kansas, including four locations in Liberal and one in Hugoton.  Equity will also add Blue Springs, Missouri, to its Kansas City presence of six bank offices, with three locations in Lee’s Summit, Missouri, two offices in Overland Park, Kansas, and one location in Kansas City, Missouri.

 

Equity added to its executive leadership team in March 2018, announcing the hire of Craig Anderson as Executive Vice President and Chief Operating Officer and the hire of Craig Mayo as Executive Vice President and Chief Credit Officer.  Mr. Anderson oversees commercial banking divisions in Equity’s metropolitan markets of Kansas City, Tulsa and Wichita.  Anderson joined Equity after 31 years in various executive and leadership roles at UMB Bank in Kansas City, Missouri, where he most recently served as President of UMB’s Commercial Banking – Eastern Region.

 

Mr. Mayo oversees Equity’s credit administration and loan operations personnel, processes and decisions throughout Equity’s four-state footprint.  Mayo joins Equity after serving as Executive Vice President and Chief Credit Officer for Investors Community Bank in Manitowoc, Wisconsin.

 

Financial Results for Quarter Ended March 31, 2018

 

Net income allocable to common stockholders was $8.7 million for the three months ended March 31, 2018, as compared to $4.9 million for the three months ended March 31, 2017, an increase of $3.8 million or 79.1%.  Financial results reflect the merger with Prairie State Bancshares, Inc. (“Prairie”), beginning March 11, 2017, the merger with Eastman National Bancshares, Inc. (“Eastman”), beginning November 11, 2017, and the merger with Cache Holdings, Inc. (“Cache”), also beginning November 11, 2017.  The Prairie merger added three locations in western Kansas with total assets of $153.1 million; the Eastman merger added four branches in Ponca City and Newkirk, Oklahoma with total assets of $259.7 million; and the Cache merger added one Tulsa, Oklahoma location with total assets of $324.6 million. During the three months ended March 31, 2018, there was $531 thousand ($412 thousand after-tax) of merger expense related to the Eastman, Cache, Adams and KBC mergers.

 

Diluted earnings per share were $0.58 for the three months ended March 31, 2018, as compared to $0.40 for the comparable period of 2017.  Weighted average fully diluted shares were 14,894,180 and 12,081,292 for the three months ended March 31, 2018 and 2017.  The increase in weighted average fully diluted shares reflects the issuance of 479,465 shares in connection with Equity’s March 2017 merger with Prairie and issuance of 1,179,747 and 1,190,941 shares in connection with Equity’s November 2017 mergers with Eastman and Cache.

 

Net interest income was $27.8 million for the three months ended March 31, 2018 as compared to $19.9 million for the three months ended March 31, 2017, a $7.9 million or 39.7% increase. The increase in net interest income was primarily driven by growth in loan and securities balances, partially offset by an increase in interest expense as we funded additional earning assets with more deposits and borrowings at higher rates.

 

Our net interest margin was 3.91% for the three months ended March 31, 2018 as compared to 3.96% for the three months ended March 31, 2017.  The decrease in net interest margin was primarily due to a 29 basis point increase in our cost of interest-bearing liabilities partially offset by an 18 basis point increase in yield on interest-earning assets.

 

The provision for loan losses was $1.2 million for the three months ended March 31, 2018 as compared to $1.1 million for the three months ended March 31, 2017.  Net loan charge-offs for the three months ended March 31, 2018, came to $352 thousand compared to net charge-offs of $479 thousand for the same period in 2017.

 

Total non-interest income rose to $4.3 million for the three months ended March 31, 2018, versus $3.3 million for the three months ended March 31, 2017. Increases in service charges and fees and in debit card income are principally attributable to the addition of accounts and higher transaction volumes associated with the Prairie, Eastman and Cache mergers.

 

 

2


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

Total non-interest expense was $19.6 million for the quarter ended March 31, 2018, compared to $15.2 million for the three months ended March 31, 2017.  These results reflect the effect of the March 2017 addition of three locations in western Kansas, the November 2017 additions of five locations in northern Oklahoma, as well as additional lending, customer service, corporate and operations staff indirectly attributable to mergers and organic growth. Non-interest expense also includes merger expenses of $531 thousand for the quarter ended March 31, 2018.  Prairie merger expenses for the three months ended March 31, 2017, totaled $926 thousand.

 

Equity’s effective tax rate for the three-month period ended March 31, 2018, was 22.5% as compared to 29.6% for the comparable period ended March 31, 2017.  On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Reform”) was enacted, which reduced the U.S. Federal statutory income tax rate from the 35% applicable in 2017 to 21% in 2018.  This rate reduction reduced Equity’s estimated annual effective tax rate by approximately 11 percentage points in 2018.  Partially offsetting the benefit of the rate reduction was a decrease in excess tax benefits associated with the exercise of stock options recorded during the quarter ended March 31, 2018, as compared to the prior year first quarter.  Excess tax benefits were $6 thousand in the first quarter of 2018, down $201 thousand from the excess tax benefits recorded in the first quarter of 2017.

 

Loans, Deposits and Total Assets

 

Loans held for investment were $2.13 billion at March 31, 2018, compared to $2.10 billion at December 31, 2017, an increase of $22.0 million.

 

As of March 31, 2018, Equity’s allowance for loan losses to total loans was 0.44%, compared to 0.40% at December 31, 2017.  Total reserves, including purchase discounts, to total loans were approximately 1.19% as of March 31, 2018, compared to 1.21% at December 31, 2017.  Nonperforming assets of $42.4 million as of March 31, 2018, were 1.33% of total assets.  Nonperforming assets at December 31, 2017, were $48.2 million or 1.52% of total assets.

 

Total deposits were $2.37 billion at March 31, 2018, as compared to $2.38 billion at December 31, 2017.  Total deposits decreased $13.7 million between December 31, 2017, and March 31, 2018.  Signature Deposits were $1.65 billion at March 31, 2018, as compared to $1.61 billion at December 31, 2017.  

 

At March 31, 2018, Equity had consolidated total assets of $3.18 billion, compared to $3.17 billion at December 31, 2017, an increase of $5.6 million.

 

Capital and Borrowings

 

In connection with the Prairie merger, Equity issued 479,465 shares valued at $31.79 per share, Equity’s closing price on March 10, 2017.  Net of $329 thousand of stock issuance costs, the Prairie merger added $14.9 million to stockholders’ equity. Related to the Eastman and Cache mergers, Equity issued 1,179,747 and 1,190,941 shares, in each case, valued at $33.15 per share, Equity’s closing price on November 10, 2017.  Net of $299 thousand of stock issuance costs, the Eastman merger added $38.8 million to stockholders’ equity while the Cache merger added $39.2 million to stockholders’ equity, net of $252 thousand of stock issuance costs.

 

At March 31, 2018, common stockholders’ equity totaled $381.5 million, $26.09 per common share, compared to $374.1 million, $25.62 per common share, at December 31, 2017.  Tangible common equity was $266.5 million and tangible book value per common share was $18.22 at March 31, 2018. Tangible common equity was $257.2 million and tangible book value per common share was $17.61 at December 31, 2017.  The ratio of common equity tier 1 capital to risk-weighted assets was approximately 11.80% and the total capital to risk-weighted assets was approximately 12.81% at March 31, 2018.

 

 

3


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

Non-GAAP Financial Measures

 

This press release includes certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

 

Conference Call and Webcast

 

Equity Chairman and Chief Executive Officer, Brad Elliott, and Chief Financial Officer, Greg Kossover, will hold a conference call and webcast to discuss first quarter 2018 results on Friday, April 20, 2018 at 9 a.m. central time.

 

Investors, news media and other participants should register for the call or audio webcast at investor.equitybank.com. On Friday, April 20, 2018, participants may dial into the call toll-free at (844) 534-7311 from anywhere in the U.S. or (574) 990-1419 internationally, using conference ID no. 7479776.

 

Participants are encouraged to dial into the call or access the webcast approximately 10 minutes prior to the start time.  Presentation slides to pair with the call or webcast will be posted one hour prior to the call at investor.equitybank.com.

 

A replay of the call and webcast will be available two hours following the close of the call until April 27, 2018, accessible at (855) 859-2056 with conference ID no. 7479776 at investor.equitybank.com.

 

About Equity Bancshares, Inc.

 

Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans and treasury management services. As of March 31, 2018, Equity had $3.18 billion in consolidated total assets, with 42 locations throughout Kansas, Missouri, Arkansas and Oklahoma, including corporate headquarters in Wichita, a bank in Tulsa and bank locations throughout the Kansas City metropolitan area. Learn more at www.equitybank.com.

 

Equity seeks to provide an enhanced banking experience for customers by providing a suite of sophisticated banking products and services tailored to their needs, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NASDAQ Global Select Market under the symbol “EQBK.”

 

Special Note Concerning Forward-Looking Statements

 

This press release 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 Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature.  These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. The foregoing list of factors is not exhaustive.

 

 

4


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on March 16, 2018 and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.

 

Important Additional Information

 

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger of Equity and each of KBC and Adams, Equity filed a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”) with respect to each of the proposed mergers. Each registration statement included a proxy statement of KBC, and a proxy statement of Adams, respectively, and constitutes a prospectus of Equity, which KBC and Adams sent to their respective shareholders. Investors and shareholders are advised to read the proxy statement/prospectus because it contains important information about Equity, KBC and Adams and the proposed transactions.

 

This document and other documents relating to the merger filed by Equity can be obtained free of charge from the SEC's website at www.sec.gov. These documents also can be obtained free of charge by accessing Equity's website at www.equitybank.com under the tab “Investor Relations” and then under “Financials.” Alternatively, these documents can be obtained free of charge from Equity by directing a request to Equity Bancshares, Inc., 7701 East Kellogg, Wichita, Kansas 67207, Attention: Jacob Willis, Investor Relations Officer, Telephone: (316) 779-1675; or to Kansas Bank Corporation, 1700 North Lincoln Avenue, Liberal, Kansas 67901, Attention: Tina Call, President & CEO, Telephone: (620) 624-1971; or to Adams Dairy Bancshares, Inc. 651 NE Coronado Drive, Blue Springs, Missouri, 64014, Attention: David Charles Chinnery, Chairman & CEO, Telephone: (816) 655-3333.

 

Participants in the Transactions

 

Equity, KBC, Adams, and certain of their respective directors and executive officers may be deemed under the rules of the SEC to be participants in the solicitation of proxies from the respective shareholders of KBC or Adams in connection with the proposed transaction. Certain information regarding the interests of these participants and a description of their direct and indirect interests, by security holdings or otherwise, was included in the proxy statement/prospectus regarding each of the proposed transactions. Additional information about Equity and its directors and officers may be found in the definitive proxy statement of Equity relating to its 2018 Annual Meeting of Stockholders filed with the SEC on March 21, 2018 and Equity's annual report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 16, 2018. The definitive proxy statement and annual report can be obtained free of charge from the SEC's website at www.sec.gov.

 

No Offer or Solicitation

 

This press release shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirement of Section 10 of the Securities Act of 1933, as amended.


 

5


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

Unaudited Financial Tables

 

 

Table 1. Selected Financial Highlights

 

Table 2. Consolidated Balance Sheets

 

Table 3. Consolidated Statements of Income

 

Table 4. Non-GAAP Financial Measures


 

6


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

TABLE 1. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

(Dollars in thousands, except per share data)

 

 

 

As of and for the three months ended

 

March 31,

2018

December 31,

2017

September 30,

2017

June 30,

2017

March 31,

2017

Statement of Income Data

 

 

 

 

 

Net interest income

$27,787

$24,589

$20,321

$21,199

$19,893

Provision for loan losses

1,170

503

727

628

1,095

Net gain (loss) from securities transactions

(8)

175

83

13

Total non-interest income

4,251

4,104

4,035

3,962

3,339

Merger expenses

531

3,267

1,023

136

926

Total non-interest expense

19,627

20,718

16,388

15,131

15,226

Income before income taxes

11,241

7,472

7,241

9,402

6,911

Provision for income taxes

2,530

3,198

2,084

3,048

2,047

Net income

8,711

4,274

5,157

6,354

4,864

Net income allocable to common stockholders

8,711

4,274

5,157

6,354

4,864

Basic earnings per share

0.60

0.32

0.42

0.52

0.41

Diluted earnings per share

0.58

0.31

0.41

0.51

0.40

 

 

 

 

 

 

Balance Sheet Data (at period end)

 

 

 

 

 

Securities available-for-sale

$174,717

$162,272

$81,116

$92,435

$103,178

Securities held-to-maturity

522,021

535,462

528,944

532,159

519,239

Gross loans held for investment

2,125,324

2,103,279

1,540,761

1,529,396

1,518,576

Allowance for loan losses

9,316

8,498

7,969

7,568

7,048

Intangible assets, net

115,032

116,922

71,353

71,608

71,790

Total assets

3,176,062

3,170,509

2,405,426

2,408,624

2,399,256

Total deposits

2,368,297

2,382,013

1,868,493

1,819,677

1,821,090

Non-time deposits

1,647,105

1,605,514

1,223,244

1,163,904

1,199,266

Borrowings

414,415

401,652

235,098

292,302

288,521

Total liabilities

2,794,575

2,796,365

2,113,591

2,122,566

2,120,050

Total stockholders’ equity

381,487

374,144

291,835

286,058

279,206

Tangible common equity*

266,455

257,222

220,482

214,450

207,416

 

 

 

 

 

 

Selected Average Balance Sheet Data (quarterly average)

 

 

 

 

 

Total gross loans receivable

$2,122,973

$1,850,045

$1,528,658

$1,519,289

$1,403,076

Investment securities

699,055

669,220

621,055

613,914

580,467

Interest-earning assets

2,883,960

2,573,043

2,192,275

2,175,517

2,036,177

Total assets

3,169,131

2,820,548

2,402,599

2,382,886

2,236,252

Interest-bearing deposits

2,043,784

1,821,850

1,584,618

1,539,763

1,458,107

Borrowings

389,120

330,651

266,392

309,588

289,074

Total interest-bearing liabilities

2,432,904

2,152,501

1,851,010

1,849,351

1,747,181

Total deposits

2,390,648

2,140,490

1,837,726

1,781,181

1,673,249

Total liabilities

2,791,236

2,483,029

2,113,592

2,099,699

1,971,516

Total stockholders’ equity

377,895

337,519

289,007

283,187

264,736

Tangible common equity*

261,261

240,899

217,542

211,467

199,551

 

 

 

 

 

 

Performance ratios

 

 

 

 

 

Return on average assets (ROAA) annualized

1.11%

0.60%

0.85%

1.07%

0.88%

Return on average equity (ROAE) annualized

9.35%

5.02%

7.08%

9.00%

7.45%

Return on average tangible common equity (ROATCE) annualized*

14.05%

7.41%

9.71%

12.36%

10.17%

Yield on loans annualized

5.55%

5.40%

5.30%

5.45%

5.61%

Cost of interest-bearing deposits annualized

0.94%

0.87%

0.82%

0.75%

0.72%

Cost of total deposits annualized

0.80%

0.74%

0.71%

0.65%

0.62%

Net interest margin annualized

3.91%

3.79%

3.68%

3.91%

3.96%

Efficiency ratio*

59.59%

60.82%

63.54%

59.79%

61.59%

Non-interest income / average assets

0.54%

0.58%

0.67%

0.67%

0.61%

Non-interest expense / average assets

2.51%

2.91%

2.71%

2.55%

2.76%

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

Tier 1 Leverage Ratio

9.45%

10.33%

10.32%

10.15%

10.52%

Common Equity Tier 1 Capital Ratio

11.80%

11.56%

13.33%

13.07%

12.72%

Tier 1 Risk Based Capital Ratio

12.41%

12.17%

14.15%

13.89%

13.54%

Total Risk Based Capital Ratio

12.81%

12.54%

14.62%

14.34%

13.96%

Total stockholders’ equity to total assets

12.01%

11.80%

12.13%

11.88%

11.64%

Tangible common equity to tangible assets*

8.70%

8.42%

9.45%

9.18%

8.91%

Book value per share

$26.09

$25.62

$23.86

$23.44

$22.88

Tangible common book value per share*

$18.22

$17.61

$18.03

$17.57

$17.00

Tangible book value per diluted common share*

$17.85

$17.29

$17.64

$17.24

$16.66

 

* The value noted is considered a Non-GAAP financial measure.  For a reconciliation of Non-GAAP financial measures, see Table 4. Non-GAAP Financial Measures.

 

7


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

TABLE 2. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

 

March 31,

2018

December 31,

2017

ASSETS

 

 

Cash and due from banks

$42,526

$48,034

Federal funds sold

620

4,161

 

 

 

Cash and cash equivalents

43,146

52,195

 

 

 

Interest-bearing time deposits in other banks

3,496

3,496

Available-for-sale securities

174,717

162,272

Held-to-maturity securities, fair value of $511,138 and $532,744

522,021

535,462

Loans held for sale

11,112

16,344

Loans, net of allowance for loan losses of $9,316 and $8,498

2,116,008

2,094,781

Other real estate owned, net

7,090

7,907

Premises and equipment, net

62,572

63,449

Bank-owned life insurance

68,690

68,384

Federal Reserve Bank and Federal Home Loan Bank stock

25,437

24,373

Interest receivable

12,450

12,371

Goodwill

103,412

104,907

Core deposit intangible, net

10,355

10,738

Other

15,556

13,830

 

 

 

Total assets

$3,176,062

$3,170,509

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Deposits

 

 

Demand

$362,786

$366,530

 

 

 

Total non-interest-bearing deposits

362,786

366,530

 

 

 

Savings, NOW and money market

1,284,319

1,238,984

Time

721,192

776,499

 

 

 

Total interest-bearing deposits

2,005,511

2,015,483

 

 

 

Total deposits

2,368,297

2,382,013

 

 

 

Federal funds purchased and retail repurchase agreements

42,101

37,492

Federal Home Loan Bank advances

355,836

347,692

Bank stock loan

2,438

2,500

Subordinated debentures

14,040

13,968

Contractual obligations

1,966

1,967

Interest payable and other liabilities

9,897

10,733

Total liabilities

2,794,575

2,796,365

 

 

 

 

 

 

Stockholders’ equity

 

 

Common stock

161

161

Additional paid-in capital

332,075

331,339

Retained earnings

74,212

65,512

Accumulated other comprehensive loss

(5,185)

(3,092)

Employee stock loans

(121)

(121)

Treasury stock

(19,655)

(19,655)

Total stockholders’ equity

381,487

374,144

Total liabilities and stockholders’ equity

$3,176,062

$3,170,509


 

8


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

 

TABLE 3. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

Three Months Ended

March 31,

 

2018

2017

Interest and dividend income

 

 

Loans, including fees

$29,048

$19,400

Securities, taxable

3,723

2,724

Securities, nontaxable

879

785

Federal funds sold and other

473

306

 

 

 

Total interest and dividend income

34,123

23,215

 

 

 

Interest expense

 

 

Deposits

4,718

2,576

Federal funds purchased and retail repurchase agreements

23

12

Federal Home Loan Bank advances

1,299

502

Bank stock loan

27

Subordinated debentures

269

232

 

 

 

Total interest expense

6,336

3,322

 

 

 

Net interest income

27,787

19,893

Provision for loan losses

1,170

1,095

 

 

 

Net interest income after provision for loan losses

26,617

18,798

Non-interest income

 

 

Service charges and fees

1,580

1,182

Debit card income

1,253

1,005

Mortgage banking

313

485

Increase in value of bank owned life insurance

652

355

Net gain (loss) from securities transactions

(8)

13

Other

461

299

 

 

 

Total non-interest income

4,251

3,339

 

 

 

Non-interest expense

 

 

Salaries and employee benefits

10,891

7,806

Net occupancy and equipment

1,802

1,499

Data processing

1,674

1,161

Professional fees

715

516

Advertising and business development

619

518

Telecommunications

369

361

FDIC insurance

244

106

Courier and postage

255

226

Free nation-wide ATM cost

292

212

Amortization of core deposit intangible

384

209

Loan expense

346

177

Other real estate owned

268

205

Merger expenses

531

926

Other

1,237

1,304

 

 

 

Total non-interest expense

19,627

15,226

 

 

 

Income before income taxes

11,241

6,911

Provision for income taxes

2,530

2,047

 

 

 

Net income

$8,711

$4,864

 

 

 

Net income allocable to common stockholders

$8,711

$4,864

 

 

 

Basic earnings per share

$0.60

$0.41

 

 

 

Diluted earnings per share

$0.58

$0.40


 

9


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

TABLE 4. Non-GAAP Financial Measures (Unaudited)

(Dollars in thousands, except per share data)

 

 

As of and for the three months ended

 

March 31,

2018

December 31,

2017

September 30,

2017

June 30,

2017

March 31,

2017

Total stockholders’ equity

$381,487

$374,144

$291,835

$286,058

$279,206

Less: goodwill

103,412

104,907

64,587

64,587

64,521

Less: core deposit intangibles, net

10,355

10,738

5,476

5,719

5,954

Less: mortgage servicing asset, net

16

17

19

20

22

Less: naming rights, net

1,249

1,260

1,271

1,282

1,293

 

 

 

 

 

 

Tangible common equity

$266,455

$257,222

$220,482

$214,450

$207,416

 

 

 

 

 

 

Common shares outstanding at period end

14,621,258

14,605,607

12,230,319

12,206,319

12,202,237

 

 

 

 

 

 

Diluted common shares outstanding at period end

14,923,798

14,873,257

12,501,484

12,441,429

12,450,315

 

 

 

 

 

 

Book value per common share

$26.09

$25.62

$23.86

$23.44

$22.88

 

 

 

 

 

 

Tangible book value per common share

$18.22

$17.61

$18.03

$17.57

$17.00

 

 

 

 

 

 

Tangible book value per diluted common share

$17.85

$17.29

$ 17.64

$17.24

$16.66

 

 

 

 

 

 

Total assets

$3,176,062

$3,170,509

$2,405,426

$2,408,624

$2,399,256

Less: goodwill

103,412

104,907

64,587

64,587

64,521

Less: core deposit intangibles, net

10,355

10,738

5,476

5,719

5,954

Less: mortgage servicing asset, net

16

17

19

20

22

Less: naming rights, net

1,249

1,260

1,271

1,282

1,293

 

 

 

 

 

 

Tangible assets

$3,061,030

$3,053,587

$2,334,073

$2,337,016

$2,327,466

 

 

 

 

 

 

Total stockholders’ equity to total assets

12.01%

11.80%

12.13%

11.88%

11.64%

 

 

 

 

 

 

Tangible common equity to tangible assets

8.70%

8.42%

9.45%

9.18%

8.91%

 

 

 

 

 

 

Total average stockholders’ equity

$377,895

$337,519

$289,007

$283,187

$264,736

Less: average intangible assets

116,634

96,620

71,465

71,720

65,185

 

 

 

 

 

 

Average tangible common equity

$261,261

$240,899

$217,542

$211,467

$199,551

 

 

 

 

 

 

Net income allocable to common stockholders

$8,711

$4,274

$5,157

$6,354

$4,864

Amortization of intangible assets

525

349

256

247

218

Less: tax effect of intangible assets amortization

184

122

90

86

76

 

 

 

 

 

 

Adjusted net income allocable to common stockholders

$9,052

$4,501

$5,323

$6,515

$5,006

 

 

 

 

 

 

Return on total average stockholders’ equity (ROAE)

annualized

9.35%

5.02%

7.08%

9.00%

7.45%

 

 

 

 

 

 

Return on average tangible common equity (ROATCE) annualized

14.05%

7.41%

9.71%

12.36%

10.17%

 

 

 

 

 

 

Non-interest expense

$19,627

$20,718

$16,388

$15,131

$15,226

Less: merger expenses

531

3,267

1,023

136

926

 

 

 

 

 

 

Non-interest expense, excluding merger expenses

$19,096

$17,451

$15,365

$14,995

$14,300

 

 

 

 

 

 

Net interest income

$27,787

$24,589

$20,321

$21,199

$19,893

 

 

 

 

 

 

Non-interest income

$4,251

$4,104

$4,035

$3,962

$3,339

Less: net gain (loss) from securities transactions

(8)

175

83

13

 

 

 

 

 

 

Non-interest income, excluding net gains (losses) on security transactions

$4,259

$4,104

$3,860

$3,879

$3,326

 

 

 

 

 

 

Net interest income plus non-interest income, excluding net gains (losses) on security transactions

$32,046

$28,693

$24,181

$25,078

$23,219

Non-interest expense to net interest income plus non-interest income

61.26%

72.21%

67.29%

60.14%

65.54%

 

 

 

 

 

 

Efficiency ratio

59.59%

60.82%

63.54%

59.79%

61.59%

 

 

 

 

 

 


 

10


Equity Bancshares, Inc.

EXHIBIT 99.1

PRESS RELEASE - 4/19/2018

 

 

Investor Contact:

Jacob Willis

Investor Relations Officer

316-779-1675

jwillis@equitybank.com

investor.equitybank.com

 

Media Contact:

John Hanley

SVP, Director of Marketing

816-505-4063

jhanley@equitybank.com

 

 

11

eqbk-ex992_9.pptx.htm

Slide 1

Q1 2018 Results Presentation April 19, 2018 Exhibit 99.2

Slide 2

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 statements reflect the current views of Equity Bancshares, Inc. (“Equity”) management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2018 and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results. NON-GAAP FINANCIAL MEASURES This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation. Numbers in the presentation may not sum due to rounding.

Slide 3

Additional Information for Investors and Shareholders Additional Information for Investors and Shareholders The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed merger of Equity and each of Kansas Bank Corporation (“KBC”) and Adams Dairy Bancshares, Inc. (“Adams”), Equity filed a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”) with respect to each of the proposed mergers. Each registration statement included a proxy statement of KBC, or a proxy statement of Adams, respectively, and constituted a prospectus of Equity, which KBC and Adams sent to their respective shareholders. INVESTORS AND SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT EQUITY, KBC AND ADAMS AND THE PROPOSED TRANSACTIONS. These documents contain important information relating to the proposed transactions. These documents and other documents relating to the merger filed by Equity can be obtained free of charge from the SEC's website at www.sec.gov. These documents also can be obtained free of charge by accessing Equity's website at www.equitybank.com under the tab “Investor Relations” and then under “Financials.” Alternatively, these documents can be obtained free of charge from Equity by directing a request to Equity Bancshares, Inc., 7701 East Kellogg, Wichita, Kansas 67207, Attention: Jacob Willis, Investor Relations Officer, Telephone: (316) 779-1675; or to Kansas Bank Corporation, 1700 North Lincoln Avenue, Liberal, Kansas 67901, Attention: Tina Call, President & CEO, Telephone: (620) 624-1971; or to Adams Dairy Bancshares, Inc. 651 NE Coronado Drive, Blue Springs, Missouri, 64014, Attention: David Chinnery, Chairman & CEO, Telephone: (816) 655-3333. No Offer or Solicitation This press release shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirement of Section 10 of the Securities Act of 1933, as amended.

Slide 4

Equity Bancshares – About Us As of April 16, 2018 market closing. Median consensus of 2018 analyst earnings expectations as of April 11, 2018, reported as $2.83 per share. Based on 14,621,258 shares outstanding as of March 31, 2018. Non-GAAP financial measures. See the non-GAAP reconciliation at the end of this presentation. (1) (1)(2) (1)(4) (2) (1)(3) (4) Recent Price $ 40.69 Median Consensus Price Target $ 44 Tangible Book Value Per Share $ 18.22 Price to 2018 Consensus Earnings 14.38 x Price to Tangible Book Value Per Share 2.23 x Q1 2018 Diluted Earnings Per Share (EPS) $ 0.57999999999999996 2018 EPS Consensus $ 2.83 Market Capitalization ($M) $ 594.9 million

Slide 5

NASDAQ: EQBK 14.6 million shares outstanding / $594.9 million (1) $3.18 billion 1.11% / 14.05% Annualized Market Cap 59.6% YTD Exchange / Ticker Total Assets YTD ROAA / ROATCE (2) Efficiency Ratio (2) Locations FTEs Loan Portfolio 42 branches in Kansas, Missouri, Arkansas and Oklahoma Approximately 527 46% of loans in commercial real estate, 19% in residential real estate, and 25% in commercial About EQBK Note: All financial data is as of or for period ended March 31, 2018 unless otherwise noted. Market Cap calculated based on April 16, 2018 closing price of $40.69. (2) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.

Slide 6

Unemployment Rates(1) Kansas: 3.6% Missouri: 4.0% Arkansas: 4.2% Oklahoma: 4.0% USA: 4.4% Footprint 48 branches in 25 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, South/West Kansas, North Arkansas and North Oklahoma Total population of current markets served of 5.0 million Median household income of $51,356 Key Industries Transportation Manufacturing Healthcare Agriculture Pro Forma Footprint & Demographics Source: SNL Financial & The Nielsen Company Unemployment rate as of February 2018 EQBK First National Bank of Liberal (5) Adams Dairy Bank (1)

Slide 7

Prepared for upcoming mergers with Kansas Bank Corporation of Liberal, Kansas, parent of First National Bank of Liberal/Hugoton and Adams Dairy Bancshares, Inc. of Blue Springs, Missouri, parent company of Adams Dairy Bank Continued EPS growth Addition of Chief Operating Officer and new Chief Credit Officer High asset quality Total Assets at Mar. 31, 2018 of $3.18 billion; Total Loans of $2.10 billion Total Deposits of $2.37 billion Capacity for continued growth Tier 1 Leverage of 9.45% and Total Capital to Risk Weighted Assets of 12.81% Tangible Common Equity to Tangible Assets of 8.70% (1) Common share count of 14,621,258 Expanded annualized core net interest margin quarter-over-quarter Larger scale offers more efficiency Efficiency ratio of 59.6%, compared to 61.6% at Mar. 2017 (1) Non-interest expense to average assets of 2.51% 2018 First Quarter Highlights Strategic Positioning Capital Balance Sheet Management Efficiency and NIM Improvement (1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.

Slide 8

EPS & ROATCE(1) Diluted EPS and Net Income to Common Return on Average Tangible Common Equity(1) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.

Slide 9

Revenue & Efficiency Ratio(1) Efficiency Ratio(1) & Non Interest Expense/Average Assets Income and Margin 84% 85% 84% 85% 16% 15% 16% 15% $49,049 $54,626 $62,584 $101,171 * Excluding net gain on securities transactions and net gain on acquisition. Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. 85% 13% $32,046 87%

Slide 10

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 2014-2018 YTD: 9.2% 2016: Paid off SBLF. Restructured term bank stock loan into LOC. Completed Community First Merger on Nov. 10, 2016 Announced Prairie Merger on Oct. 20, 2016 Completed PIPE in Dec 2016 Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. 2017: Completed Prairie Merger on March 10, 2017; Eastman & Patriot Mergers on November 10, 2017 Announced mergers with First National Bank and Adams Dairy Bank on December 18, 2017

Slide 11

Capital Position Over Time IPO * Paid off Series C preferred stock in January 2016

Slide 12

Share Buybacks Attractive Acquisitions Common Dividends Capital Summary Excess Capital Priorities Total Capital Composition ($M) as of March 31, 2018 Capital Ratios All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized” Strong relationship with regulators at holding company and bank level Efficiently positioned working capital, regulatory capital, and stockholders’ equity 1 2 3 Equity Bancshares, Inc. as of March 31, 2018 Well Capitalized Difference to Ratio Minimum Well Capitalized Tier 1 capital ratio 12.4% 8.0% 4.4% Total RBC ratio 12.8% 10.0% 2.8% Tier 1 leverage ratio 9.5% 5.0% 4.5% Common equity tier 1 11.8% 6.5% 5.3% Tangible common equity / tangible assets 8.7% - - Risk-weighted assets ($M) $2,332 Equity Bank as of March 31, 2018 Well Capitalized Difference to Ratio Minimum Well Capitalized Tier 1 capital ratio 11.9% 8.0% 3.9% Total RBC ratio 12.3% 10.0% 2.3% Tier 1 leverage ratio 9.1% 5.0% 4.1% Common equity tier 1 11.9% 6.5% 5.4% Risk-weighted assets ($M) $2,332 - - - -

Slide 13

Loan Portfolio Composition & Growth Loan Composition Loan Composition 2013 2014 2015 2016 2017 Q1 2018 '13-'17CAGR ($ in 000s) Commercial Real Estate $,341,512 $,364,096 $,397,017 $,593,108 $,987,661 $,974,728 0.30409999999999998 Commercial ,139,365 ,183,100 ,262,032 ,348,465 ,507,519 ,526,129 0.38140000000000002 Agricultural Real Estate 22,092 17,083 18,180 38,331 86,486 92,748 0.40660000000000002 Total Commercial ,502,969 ,564,279 ,677,229 ,979,904 1,581,666 1,593,605 0.33169999999999999 Residential Real Estate ,125,395 ,134,455 ,250,216 ,338,387 ,376,705 ,394,142 0.3165 Consumer 7,961 7,875 17,103 40,902 49,361 50,477 0.57799999999999996 Agricultural 23,969 19,267 15,807 24,412 95,547 87,101 0.41299999999999998 Total 1-4 Family & Other ,157,325 ,161,597 ,283,126 ,403,701 ,521,613 ,531,720 0.34939999999999999 Total Loans $,660,294 $,725,876 $,960,355 $1,383,605 $2,103,279 $2,125,325 0.33589999999999998 Yield on Loans 5.6300000000000003E-2 5.6300000000000003E-2 5.3100000000000001E-2 4.9799999999999997E-2 5.4300000000000001E-2 5.5500000000000001E-2 Loan Composition 2013 2014 2015 2016 2017 Q1 2018 Commercial 0.76173492413985289 0.77737657671558225 0.70518610305564089 0.70822525214927667 0.75200009128603484 0.74981708679848968 1-4 Family & Other 0.23826507586014714 0.22262342328441773 0.29481389694435911 0.29177474785072327 0.24799990871396518 0.25018291320151037

Slide 14

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) Commercial Loans Outstanding by Concentrations Classified Assets to Total Regulatory Capital ($ in millions) Classified Assets / Equity Bank Total Regulatory Capital $0.89 1.52% 1.33% $0.35

Slide 15

Core Deposit Franchise Deposit Portfolio Mix Deposit Portfolio Mix Deposit Composition 2013 2014 2015 2016 2017 Q1 2018 '13-'17CAGR ($ in 000s) Time Deposits $,363,210 $,342,160 $,438,612 $,553,158 $,776,499 $,721,192 0.2092 Signature Deposits ,584,109 ,639,017 ,777,302 1,077,293 1,605,514 1,647,105 0.28760000000000002 Total Deposits $,947,319 $,981,177 $1,215,914 $1,630,451 $2,382,013 $2,368,297 0.25929999999999997 Cost of Deposits* 5.3E-3 4.8999999999999998E-3 5.4999999999999997E-3 6.4999999999999997E-3 7.9000000000000008E-3 9.4000000000000004E-3 * Interest Bearing Deposit Portfolio Mix 2013 2014 2015 2016 2017 Q1 2018 Signature Deposits 0.61659166553188527 0.65127596753694794 0.63927383022154527 0.6607331345744214 0.67401563299612555 0.69548076107008538 Time Deposits 0.38340833446811473 0.348724032463052 0.36072616977845473 0.33926686542557855 0.32598436700387445 0.30451923892991462

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Footprint & Targets

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Appendix

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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 2011 Previously served as president of Physicians Development Group and CEO of Value Place, LLC, growing the latter to more than 150 locations in 25 states WENDELL BONTRAGER President, Equity Bank Joined Equity Bank February 2017 Previously Region President of Old National Bank (IN), EVP with Tower Bank (IN) More than 25 years of banking experience CRAIG ANDERSON Chief Operating Officer Joined Equity Bank March 2018 Served as President of UMB’s Commercial Banking – Eastern Region More than 31 years of banking experience

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Strategic Planning Team Team Member Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service 14 23 Julie Huber EVP, Strategic Initiatives 14 24 Craig Mayo EVP, Chief Credit Officer 1 34 John Blakeney EVP, Chief Information Officer 1 30 Rolando Mayans EVP, Chief Risk Officer 10 25 Jennifer Johnson EVP, Chief Services Officer 6 32 Beth Money EVP, Retail Banking Director 9 28 Patrick Salmans SVP, Human Resources Director 6 22 Mark Parman SVP, President - Kansas City 5 37 John Hanley SVP, Director of Marketing 5 14 Jeremy Machain SVP, President – Wichita 9 15 Michael E. Bezanson SVP, CEO of Tulsa 1 35 Barbara Noyes SVP, Controller 7 32 EQBK Team has 454+ Years of Combined Banking Experience

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Diverse Market Segments Source: SNL Financial, Market Share Data as of September 30, 2017. Employment Data as of February 28, 2018. Operating Market includes all bank locations and counties in which Equity Bancshares Inc. , Kansas Bank Corporation, or Adams Dairy Bancshares, Inc. has deposit market share as of September 30, 2017. 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. Equity Bancshares, including Kansas Bank Corporation and Adams Dairy Bancshares, Inc., ranks in the Top 10 for market share in 17 of 25 counties served and ranks in the Top 5 in 16 of those markets.

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Market Data Demographics Kansas Missouri Arkansas Oklahoma National Current Population 2,914,920 6,117,659 3,003,556 3,959,551 326,533,070 Historical Population Change (2010-2018) 2.17% 2.15% 3.01% 5.55% 5.76% Median Household Income (2018) $58,348 $53,831 $44,901 $52,112 $61,045 Projected Household Income Change (2018-2023) 6.65% 8.53% 4.70% 3.43% 8.86% February 2018 Unemployment Rate 3.6% 4.0% 4.2% 4.0% 4.4% Source: The Nielsen Company & SNL Financial Boeing Cargill Meat Solutions Cessna Aircraft Co. Spirit AeroSystems Inc. Blue Cross and Blue Shield of Kansas and Oklahoma Payless Shoe Source Hill’s Pet Nutrition Goodyear Tire Co. Jostens Publishing Hallmark Cards, Inc. H&R Block Honeywell Sprint Garmin Teva DST Systems Inc. Whiteman Airforce Base Stahl Specialty Co. Western Missouri Medical Center HaysMed Walmart FedEx Tyson Foods FlexSteel Wabash National Wichita St. University Pittsburg St. University Washburn University Fort Hays St. University University of Central Mo. University of Mo-KC KU – Edwards/Professional Phillips 66 Albertsons Lindsay AAON QuikTrip Williams Major Employers in Equity Bank Footprint

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Selected Income Statement Data Delivering earnings growth Selected Income Statement Data ($000s) 2014 2015 2016 2017 2018 YTD Interest income $46,794 $53,028 $61,799 $,102,693 $34,123 Interest expense 5433 6766 9202 16691 6336 Net interest income 41361 46262 52597 86002 27787 Provision for loan losses 1200 3047 2119 2953 1170 Net interest income after provision 40161 43215 50478 83049 26617 Other income 8674 9802 10466 15440 4251 Other expenses 35645 38575 47075 67463 19627 Income before income taxes 13190 14442 13869 31026 11241 Income taxes 4203 4142 4495 10377 2530 Net income 8987 10300 9374 20649 8711 Less: dividends and discounts accretion on preferred stock 708 177 1 0 0 Net income allocable to common shareholders $8,279 $10,123 $9,373 $20,649 $8,711

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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 43190 Cash and cash equivalents (1) $37,702 $62,074 $38,845 $55,691 $46,642 Investment securities (2) 318314 452362 578093 722107 722175 Net loans 720810 958353 1382003 2111125 2127120 Other assets 97689 112938 193251 281586 280125 Total assets $1,174,515 $1,585,727 $2,192,192 $3,170,509 $3,176,062 LIABILITIES & STOCKHOLDERS' EQUITY Deposits $,981,177 $1,215,914 $1,630,451 $2,382,013 $2,368,297 Borrowings 70370 194064 293909 401652 414415 Other liabilities 5239 8516 9868 12700 11863 Total liabilities 1056786 1418494 1934228 2796365 2794575 Stockholders' Equity 117729 167233 257964 374144 381487 Total liabilities and stockholders' equity $1,174,515 $1,585,727 $2,192,192 $3,170,509 $3,176,062

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Capitalization Source: SNL Financial and company documents (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 43190 Leverage Ratio 9.6199999999999994E-2 9.4700000000000006E-2 0.1181 0.1033 9.4500000000000001E-2 Tier 1 Risk-Based Capital Ratio 0.13159999999999999 0.13850000000000001 0.14249999999999999 0.1217 0.1241 Total Risk-Based Capital Ratio 0.1386 0.14349999999999999 0.1467 0.12540000000000001 0.12809999999999999 Common Equity Tier-1 Capital to RWA NA 0.1235 0.13339999999999999 0.11559999999999999 0.11799999999999999 Tangible Book Value per Common Share(1) $13.54 $15.97 $16.64 $17.61 $18.22

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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

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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) March 31, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2014 December 31,2012 Total stockholders’ equity $,381,487 $,374,144 $,257,964 $,167,233 $,117,729 $,138,169 Less: preferred stock 0 0 0 16,372 16,359 31,884 Less: goodwill ,103,412 ,104,907 58,874 18,130 18,130 18,130 Less: core deposit intangibles, net 10,355 10,738 4,715 1,549 1,107 1,957 Less: mortgage servicing asset, net 16 17 23 29 0 Less: naming rights, net 1,249 1,260 0 0 0 0 Tangible common equity $,266,455 $,257,222 $,194,352 $,131,153 $82,133 $86,198 Common shares outstanding at period end (1) 14,621,258 14,605,607 11,680,308 8,211,727 6,067,511 7,431,513 Book value per common share (1) $26.091256990335577 $25.61646359511111 $22.085376515756259 $18.371409570727327 $16.707015446696349 $14.301932863469389 Tangible book value per common share (1) $18.223808101874681 $17.611181787925695 $16.639287251671785 $15.971427204046117 $13.536522636712155 $11.598983948490705 Total assets $3,176,062 $3,170,509 $2,192,192 $1,585,727 $1,174,515 $1,188,850 Less: goodwill ,103,412 ,104,907 58,874 18,130 18,130 18,130 Less: core deposit intangibles, net 10,355 10,738 4,715 1,549 1,107 1,957 Less: mortgage servicing asset, net 16 17 23 29 0 Less: naming rights, net 1,249 1,260 0 0 0 0 Tangible assets $3,061,030 $3,053,587 $2,128,580 $1,566,019 $1,155,278 $1,168,763 Tangible common equity to tangible assets 8.7047497084314751E-2 8.4236014890029326E-2 9.1305941049901806E-2 8.3749303169374067E-2 7.1093710777838756E-2 7.3751479127932701E-2 (1) Share and per share data includes Class A and Class B common stock issued and outstanding Non-GAAP Financial Measures, continued (Unaudited) As of and for the three months ended As of and for the three months ended As of and for the three months ended As of and for the years ended (Dollars in thousands, except per share data) March 31, 2017 March 31, 2017 March 31, 2016 December 31,2015 December 31,2014 December 31,2012 Total average stockholders' equity $,264,736 $,264,736 $,153,929 $,137,936 $,123,174 $,102,032 Less: average intangible assets and preferred stock 65,185 65,185 20,616 31,294 37,917 33,653 Average tangible common equity (1) (3) $,199,551 $,199,551 $,133,313 $,106,642 $85,257 $68,379 Net income allocable to common stockholders (1) 4,864 4,864 3,439 10,123 8,279 3,814 Amortization of core deposit intangible 218 218 87 275 363 192 Less: tax effect of amortization of core deposit intangible (2) -76 -76 -30 -96 -,127 -65 Adjusted net income allocable to common stockholders $5,006 $5,006 $3,496 $10,302 $8,515 $3,941 Return on average tangible common equity (ROATCE) 0.10173895951967722 0.10173895951967722 0.10547234826937482 9.6603589580090396E-2 9.98744971087418E-2 5.7634653914213428E-2 Non-interest expense $15,226 $15,226 $9,689 $38,575 $35,645 $22,900 Less: merger expenses 926 926 0 1,691 0 1,519 Less: loss on debt extinguishment 0 0 58 316 0 0 Non-interest expense, excluding merger expenses and loss on debt extinguishment $14,300 $14,300 $9,631 $36,568 $35,645 $21,381 Net interest income $19,893 $19,893 $12,758 $46,262 $41,361 $25,570 Non-interest income $3,339 $3,339 $2,697 $9,802 $8,674 $4,826 Less: net gains on sales and settlement of securities 13 13 420 756 986 3 Less: net gain on acquisition 0 0 0 682 0 0 Non-interest income, excluding net gains on sales and settlement of securities and net gain on acquisition $3,326 $3,326 $2,277 $8,364 $7,688 $4,823 Efficiency ratio 0.61587493001421245 0.61587493001421245 0.64057199866977055 0.6694248160216747 0.72672225733450224 0.70348435495015305 ____________________ (1) Share and per share data includes Class A and Class B common stock issued and outstanding (2) Tax rates used in this calculation were 35% for 2015 and 2014 and 34% for 2013, 2012, and 2011 (3) All periods disclosed were calculated using a simple average of tangible common equity

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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: goodwill ,103,412 ,104,907 58,874 18,130 18,130 Less: core deposit intangibles, net 10,355 10,738 4,715 1,549 1,107 Less: mortgage servicing asset, net 16 17 23 29 0 Less: naming rights, net 1,249 1,260 0 0 0 Tangible common equity $,266,455 $,257,222 $,194,352 $,131,152 $82,133 Common shares outstanding at period end (1) 14,621,258 14,605,607 11,680,308 8,211,727 6,067,511 Book value per common share $26.091256990335577 $25.61646359511111 $22.085376515756259 $18.371287793663868 $16.707015446696349 Tangible book value per common share $18.223808101874681 $17.611181787925695 $16.639287251671785 $15.971305426982656 $13.536522636712155 Total assets $3,176,062 $3,170,509 $2,192,192 $1,585,727 $1,174,515 Less: goodwill ,103,412 ,104,907 58,874 18,130 18,130 Less: core deposit intangibles, net 10,355 10,738 4,715 1,549 1,107 Less: mortgage servicing asset, net 16 17 23 29 0 Less: naming rights, net 1,249 1,260 0 0 0 Tangible assets $3,061,030 $3,053,587 $2,128,580 $1,566,019 $1,155,278 Tangible common equity to tangible assets 8.7047497084314751E-2 8.4236014890029326E-2 9.1305941049901806E-2 8.3748664607517537E-2 7.1093710777838756E-2 (1) Share and per share data includes Class A and Class B common stock issued and outsanding (2) Tax rates used in this calculation were 35% (3) All periods disclosed, except 2018, 2017 and 2016, were calculated using a simple average of tangible common equity Non-GAAP Financial Measures, continued (Unaudited) As of and for the years ended (Dollars in thousands, except per share data) March 31, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2014 Total average stockholders' equity $,377,895 $,293,798 $,168,822 $,125,808 $,123,181 Less: average intangible assets and preferred stock ,116,634 76,320 25,882 19,165 37,924 Average tangible common equity (3) $,261,261 $,217,478 $,142,940 $,106,643 $85,257 Net income allocable to common stockholders $8,711 $20,649 $9,373 $10,123 $8,279 Amortization of intangibles 525 1,070 419 275 363 Less: tax effect of amortization of intangibles (2) 184 375 147 96 127 Adjusted net income allocable to common stockholders $9,052 $21,344 $9,645 $10,302 $8,515 Return on average tangible common equity (ROATCE) (4) 0.14051423246825545 9.8143260467725466E-2 6.7475863998880656E-2 9.6602683720450472E-2 9.98744971087418E-2 Non-interest expense $19,627 $67,463 $47,075 $38,575 $35,645 Less: merger expenses 531 5,352 5,294 1,691 0 Less: loss on debt extinguishment 0 0 58 316 0 Non-interest expense, excluding merger expenses and loss on debt extinguishment $19,096 $62,111 $41,723 $36,568 $35,645 Net interest income $27,787 $86,002 $52,597 $46,262 $41,361 Non-interest income $4,251 $15,440 $10,466 $9,802 $8,674 Less: net gains from securities transactions -8 271 479 756 986 Less: net gain on acquisition 0 0 0 682 0 Non-interest income, excluding net gains on securities transactions and net gain on acquisition $4,259 $15,169 $9,987 $8,364 $7,688 Efficiency ratio 0.59589340323285278 0.61392098526257521 0.66667199284162082 0.6694248160216747 0.72672225733450224 ____________________ (1) Share and per share data includes Class A and Class B common stock issued and outstanding (2) Tax rates used in this calculation were 35% (3) All periods disclosed, except 2018, 2017 and 2016, were calculated using a simple average of tangible common equity (4) Annualized

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