eqbk-8k_20180719.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): July 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 July 19, 2018, Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 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 second quarter ended June 30, 2018 on Friday, July 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 second quarter ended June 30, 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 9.01Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.

 

Description

99.1

 

Earnings Press Release, dated July 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: July 19, 2018

By: /s/ Gregory H. Kossover

 

Gregory H. Kossover

 

Executive Vice President and Chief Financial Officer


3

eqbk-ex991_8.htm

Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

Equity Bancshares, Inc. Reports Record Net Income for Second Quarter 2018,

Completes Expansion in Southwest Kansas and Kansas City Metro Area,

Announces Additional Expansion in Oklahoma

 

WICHITA, Kansas, July 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 June 30, 2018, including net income allocable to common stockholders for the quarter of $6.9 million, or $0.44 per diluted share.  Year-to-date 2018 net income allocable to common stockholders was $15.6 million and $1.02 per diluted share.

 

Brad Elliott, Chairman and CEO of Equity, said, “Once again, our Equity Bank team demonstrated considerable talent and determination by providing innovative solutions that serve our customers, while executing our strategy to add vibrant, stable markets to our company footprint.  In the second quarter, our teams welcomed communities in Liberal and Hugoton, Kansas and Blue Springs, Missouri, into the Equity Bank family; as well as continuing to grow organically within our markets.  Our new team members in Liberal, Hugoton and Blue Springs have been instrumental in providing a seamless transition for customers, while partnering with our merger teams to close and complete on schedule.

 

Mr. Elliott continued, “We are also pleased to welcome a strong community bank in City Bank and Trust of Guymon, Oklahoma to our footprint later this year and add to our growing Oklahoma presence.  We believe City Bank and Trust’s leadership team is a match with our credit and operating culture as well as our philosophy.  We continue to position Equity Bank for growth by reviewing merger candidates that are a cultural fit and which will add to our focus of growing organically, while not sacrificing our high credit-quality.”

 

Notable Items

 

 

-

Income before taxes for the second quarter of 2018 was $8.8 million, or $0.56 per diluted share, compared to $9.4 million, or $0.76 per diluted share, for the same time period in 2017.  Income before taxes, adjusted to exclude merger expense, was a record $14.0 million, or $0.89 per diluted share, for the second quarter of 2018, compared to $9.5 million, or $0.77 per diluted share, for the second quarter of 2017.

 

-

Stated diluted earnings per share in the second quarter of 2018 was $0.44.  Merger expenses, adjusted for estimated income tax, were $4.0 million in the second quarter of 2018, or $0.26 per diluted share.

 

-

Net income allocable to common stockholders, adjusted for after-tax merger expense, was a record $10.9 million, or $0.69 per diluted share in the second quarter of 2018. Net income allocable to common stockholders, adjusted for after-tax merger expense of $84 thousand, was $6.4 million, or $0.52 per diluted share in the second quarter of 2017.

 

Highlights of Equity’s growth include:

 

 

-

Total loans held for investment of $2.41 billion at June 30, 2018, as compared to total loans held for investment of $2.10 billion at December 31, 2017.

 

-

Total deposits were $2.64 billion at June 30, 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 $1.83 billion at June 30, 2018, compared to $1.61 billion at December 31, 2017.

 

-

Total assets of $3.71 billion at June 30, 2018, compared to $3.17 billion at December 31, 2017.

 

-

Book value per common share of $27.44 at June 30, 2018 and $25.62 at December 31, 2017.  Tangible book value per common share of $18.16 at June 30, 2018 and $17.61 at December 31, 2017.

 

On June 12, 2018, Equity announced its definitive merger agreement to acquire City Bank and Trust (“CBT”) of Guymon, Oklahoma, from parent company Docking Bancshares, Inc. (“Docking”) of Arkansas City, Kansas.  After the merger, which is expected to be completed during the fourth quarter of 2018, pending customary closing conditions and regulatory approval, Equity will have completed 18 successful business combinations since 2003, and

1

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

8th since the Company’s initial public offering in November 2015.  Following the merger with CBT, Equity will have 49 full-service bank locations throughout its footprint, including six in Oklahoma.

 

Equity also completed its mergers with Kansas Bank Corporation (“KBC”), parent company of First National Bank of Liberal/Hugoton (“FNB”) in Liberal, Kansas and Adams Dairy Bancshares, Inc. (“Adams”), parent company of Adams Dairy Bank in Blue Springs, Missouri, on May 4, 2018.  Results of operations of KBC and Adams are included in Equity’s second quarter results subsequent to their mergers.

 

Financial Results for Six Months Ended June 30, 2018

 

Net income allocable to common stockholders was $15.6 million for the six months ended June 30, 2018 as compared to $11.2 million for the six months ended June 30, 2017, an increase of $4.4 million or 38.9%.  Financial results reflect the mergers with KBC and Adams beginning on May 5, 2018.  The KBC merger added four bank locations in Liberal, Kansas and one bank location in Hugoton, Kansas with total assets of $336.1 million; the Adams merger added one bank location in Blue Springs, Missouri, with total assets of $115.8 million.  During the six months ended June 30, 2018, there was $5.8 million ($4.6 million after-tax) of merger expense principally related to the CBT, KBC and Adams mergers.

 

Diluted earnings per share were $1.02 for the six-month period ended June 30, 2018, as compared to $0.91 for the comparable period of 2017.  Weighted average fully diluted shares were 15,294,387 and 12,264,156 for the six months ended June 30, 2018 and 2017.  The increase in weighted average fully diluted shares reflect the issuance of 2,370,688 shares in connection with Equity’s November 2017 mergers with Eastman National Bancshares, Inc. (“Eastman”) and Cache Holdings, Inc. (“Cache”) and 1,164,912 shares in connection with Equity’s May 2018 mergers with KBC and Adams.

 

Net interest income was $58.7 million for the six months ended June 30, 2018 as compared to $41.1 million for the six months ended June 30, 2017, a $17.6 million or 42.9% 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 the increase in earning assets with increased deposits and borrowings.

 

Our net interest margin was 3.92% for the six months ended June 30, 2018 as compared to 3.93% for the six months ended June 30, 2017.

 

The provision for loan losses was $1.9 million for the six months ended June 30, 2018 as compared to $1.7 million for the six months ended June 30, 2017.  Net charge-offs for the six months ended June 30, 2018 were $335 thousand compared to net charge-offs of $587 thousand for the comparable period of 2017.

 

Total non-interest income was $8.8 million for the six months ended June 30, 2018 as compared to $7.3 million for the six months ended June 30, 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 Eastman, Cache, KBC and Adams mergers.  Non-interest income includes the increase in value of bank owned life insurance of $1.2 million and $709 thousand for the six-month periods ended June 30, 2018 and 2017.

 

Total non-interest expense was $45.6 million for the six months ended June 30, 2018 as compared to $30.4 million for the six months ended June 30, 2017.  These results primarily reflect the effect of the November 2017 Eastman merger, which added four locations in Newkirk and Ponca City, Oklahoma, the November 2017 Cache merger, which added one location in Tulsa, Oklahoma, the May 2018 KBC merger, which added five locations in southwest Kansas and the May 2018 Adams merger, which added one additional location in Missouri.  In addition, the results reflect additional lending, customer service, corporate and operations staff indirectly attributable to mergers and organic growth and increased data processing costs due to increased accounts and higher transaction volumes.  Non-interest expense also includes merger expenses of $5.8 million ($4.5 million after-tax) for the six months ended June 30, 2018.  Merger expenses for the six months ended June 30, 2017, totaled $1.1 million ($660 thousand after-tax).

 

2

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

Equity’s effective tax rate for the six-month period ended June 30, 2018 was 22.2% as compared to 31.2% for the six-month period ended June 30, 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% rate applicable in 2017 to 21% in 2018.  Equity’s estimated annual effective tax rate was reduced approximately 10 percentage points in 2018 principally due to this reduction in the U.S. federal statutory rate.  In addition to the statutory tax rates applicable in each period, the estimated annual effective tax rate for both 2018 and 2017 reflect the levels of tax-exempt interest income, non-taxable life insurance income, non-deductible facilitative merger expense and other non-deductible expense included in income before income taxes as well as available federal income tax credits.  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 six months ended June 30, 2018, as compared to the same time period of the prior year.  Excess tax benefits were $6 thousand in the first six months of 2018, down $209 thousand from the excess tax benefits recorded in the first six months of 2017.

 

Financial Results for Quarter Ended June 30, 2018

 

Net income allocable to common stockholders was $6.9 million for the three months ended June 30, 2018, as compared to $6.4 million for the three months ended June 30, 2017, an increase of $513 thousand or 8.1%.

 

Diluted earnings per share were $0.44 for the three months ended June 30, 2018, as compared to $0.51 for the comparable period of 2017.  Weighted average fully diluted shares were 15,690,111 and 12,444,859 for the three months ended June 30, 2018 and 2017.  The increase in weighted average fully diluted shares reflect the issuance of 2,370,688 shares in connection with Equity’s November 2017 mergers with Eastman and Cache and 1,164,912 shares in connection with Equity’s May 2018 mergers with KBC and Adams.

 

Net interest income was $30.9 million for the three months ended June 30, 2018, as compared to $21.2 million for the three months ended June 30, 2017, a $9.7 million or 45.9% 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 the increase in earning assets with increased deposits and borrowings.

 

Our net interest margin was 3.93% for the three months ended June 30, 2018, as compared to 3.91% for the three months ended June 30,  2017.  The increase in net interest margin was primarily due to an overall increase in volume and yield of interest-earning assets including an increase in accretion of purchase accounting discounts related to the Eastman and Cache mergers and to a lesser extent the KBC and Adams mergers, partially offset by an overall increase in volumes and cost of interest-bearing liabilities.

 

The provision for loan losses was $750 thousand for the three months ended June 30, 2018, as compared to $628 thousand for the three months ended June 30, 2017.  For the three months ended June 30, 2018 we had a net recovery of $17 thousand compared to net charge-offs of $108 thousand for the same period in 2017.

 

Total non-interest income rose to $4.6 million for the three months ended June 30, 2018, versus $4.0 million for the three months ended June 30, 2017.  Increases in service charges and fees and debit card income are principally attributable to the addition of accounts and higher transaction volumes associated with the Eastman and Cache mergers, and to a lesser extent, the May 2018 mergers with KBC and Adams.  Non-interest income includes the increase in value of bank owned life insurance of $508 thousand and $354 thousand for the three-month periods ended June 30, 2018 and 2017.

 

Total non-interest expense was $26.0 million for the quarter ended June 30, 2018, compared to $15.1 million for the quarter ended June 30, 2017.  These results reflect the effect of the November 2017 addition of five locations in northern Oklahoma, the May 2018 addition of five locations in southwest Kansas and the addition of one location in Blue Springs, Missouri.  In addition, the results reflect additional lending, customer service, corporate and operations staff indirectly attributable to mergers and organic growth and increased data processing costs due to increased accounts and higher transaction volumes.  Non-interest expense also includes merger expenses of $5.2 million ($4.0

3

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

million after-tax) for the three months ended June 30, 2018.  Merger expenses for the three months ended June 30, 2017, totaled $136 thousand ($84 thousand after-tax).

 

Equity’s effective tax rate for the three months ended June 30, 2018, was 21.9% as compared to 32.4% for the quarter ended June 30, 2017.  The effective tax rates for each of the comparable periods reflect the applicable statutory tax rates as well as the levels of tax-exempt interest income, non-taxable life insurance income, non-deductible facilitative merger expense and other non-deductible expense included in income before income taxes as well as available federal income tax credits.  There were no excess benefits associated with the exercise of stock options recorded in the second quarter of 2018 as compared to $8 thousand in the comparable period of 2017.

 

Loans, Deposits, and Total Assets

 

Loans held for investment were $2.41 billion at June 30, 2018, compared to $2.10 billion at December 31, 2017, an increase of $308.2 million.  The increase in loans held for investment includes $159.9 million and $82.7 million of net loans acquired in the May 2018 KBC and Adams mergers and $65.6 million of other loan growth.

 

As of June 30, 2018, Equity’s allowance for loan losses to total loans was 0.42%, compared to 0.40% at December 31, 2017.  Total reserves, including purchase discounts, to total loans were approximately 1.11% as of June 30, 2018, compared to 1.21% at December 31, 2017.  Nonperforming assets of $45.6 million as of June 30, 2018, were 1.23% of total assets and included nonperforming assets of $3.2 million and $1.6 million acquired in the KBC and Adams mergers.  Nonperforming assets at December 31, 2017, were $48.2 million or 1.52% of total assets.

 

Total deposits were $2.64 billion at June 30, 2018, as compared to $2.38 billion at December 31, 2017.  Total deposits increased $253.0 million between December 31, 2017, and June 30, 2018.  This increase included $288.4 million of deposits assumed in the KBC merger and $97.1 million of deposits assumed in the Adams merger, partially offset by a reduction of $132.4 million in deposits primarily related to a planned reduction in brokered deposits assumed in prior mergers and decreases in public funds deposits from both expenditure of the funds by the entities and from the competitive nature of public funds deposits. Signature deposits were $1.83 billion at June 30, 2018, as compared to $1.61 billion at December 31, 2017.

 

At June 30, 2018, Equity had consolidated total assets of $3.71 billion, compared to $3.17 billion at December 31, 2017, an increase of $541.7 million.  The increase in total assets includes $336.1 million of total assets acquired in the KBC merger and $115.8 million of total assets acquired in the Adams merger.

 

Capital and Borrowings

 

In connection with the KBC  and Adams mergers, Equity issued 820,849 shares and 344,063 shares, in each case, valued at $39.11 per share, Equity’s closing price on May 4, 2018.  Net of $207 thousand of stock issuance costs, the KBC merger added $31.9 million to stockholders’ equity while the Adams merger added $13.2 million to stockholders’ equity, net of $237 thousand of stock issuance costs.

 

At June 30, 2018, common stockholders’ equity totaled $433.3 million, $27.44 per common share, compared to $374.1 million, $25.62 per common share, at December 31, 2017.  Tangible common equity was $286.7 million and tangible book value per common share was $18.16 at June 30, 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 11.13% and the total capital to risk-weighted assets was approximately 12.03% at June 30, 2018.

 

4

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

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 second quarter 2018 results on Friday, July 20, 2018 at 10 a.m. eastern time and 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, July 20, 2018, participants may also 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. 2492649.

 

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 July 27, 2018, accessible at (855) 859-2056 with conference ID no. 2492649 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 June 30, 2018, Equity had $3.71 billion in consolidated total assets, with 48 locations throughout Kansas, Missouri, Arkansas and Oklahoma, including its corporate headquarters in Wichita and bank locations throughout the Kansas City and Tulsa metropolitan areas.  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

5

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

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 (“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, Form S-3 or Form S-4.  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.

 

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

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

TABLE 1. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

(Dollars in thousands, except per share data)

 

As of and for the three months ended

 

June 30,

2018

March 31,

2018

December 31,

2017

September 30,

2017

June 30,

2017

Statement of Income Data

 

 

 

 

 

Net interest income

$30,920

$27,787

$24,589

$20,321

$21,199

Provision for loan losses

750

1,170

503

727

628

Net gains (losses) from securities transactions

(2)

(8)

175

83

Other non-interest income

4,594

4,259

4,104

3,860

3,879

Total non-interest income

4,592

4,251

4,104

4,035

3,962

Merger expenses

5,236

531

3,267

1,023

136

Other non-interest expense

20,739

19,096

17,451

15,365

14,995

Total non-interest expense

25,975

19,627

20,718

16,388

15,131

Income before income taxes

8,787

11,241

7,472

7,241

9,402

Provision for income taxes

1,920

2,530

3,198

2,084

3,048

Net income

6,867

8,711

4,274

5,157

6,354

Net income allocable to common stockholders

6,867

8,711

4,274

5,157

6,354

Basic earnings per share

0.45

0.60

0.32

0.42

0.52

Diluted earnings per share

0.44

0.58

0.31

0.41

0.51

 

 

 

 

 

 

Balance Sheet Data (at period end)

 

 

 

 

 

Securities available-for-sale

$180,238

$174,717

$162,272

$81,116

$92,435

Securities held-to-maturity

665,995

522,021

535,462

528,944

532,159

Gross loans held for investment

2,411,471

2,125,324

2,103,279

1,540,761

1,529,396

Allowance for loan losses

10,083

9,316

8,498

7,969

7,568

Intangible assets, net

146,538

115,032

116,922

71,353

71,608

Total assets

3,712,185

3,176,062

3,170,509

2,405,426

2,408,624

Total deposits

2,635,048

2,368,297

2,382,013

1,868,493

1,819,677

Non-time deposits

1,829,902

1,647,105

1,605,514

1,223,244

1,163,904

Borrowings

631,501

414,415

401,652

235,098

292,302

Total liabilities

3,278,903

2,794,575

2,796,365

2,113,591

2,122,566

Total stockholders’ equity

433,282

381,487

374,144

291,835

286,058

Tangible common equity*

286,744

266,455

257,222

220,482

214,450

 

 

 

 

 

 

Selected Average Balance Sheet Data (quarterly average)

 

 

 

 

 

Total gross loans receivable

$2,317,071

$2,122,973

$1,850,045

$1,528,658

$1,519,289

Investment securities

767,038

699,055

669,220

621,055

613,914

Interest-earning assets

3,158,187

2,883,960

2,573,043

2,192,275

2,175,517

Total assets

3,475,786

3,169,131

2,820,548

2,402,599

2,382,886

Interest-bearing deposits

2,148,361

2,043,784

1,821,850

1,584,618

1,539,763

Borrowings

495,558

389,120

330,651

266,392

309,588

Total interest-bearing liabilities

2,643,919

2,432,904

2,152,501

1,851,010

1,849,351

Total deposits

2,556,982

2,390,648

2,140,490

1,837,726

1,781,181

Total liabilities

3,062,312

2,791,236

2,483,029

2,113,592

2,099,699

Total stockholders’ equity

413,474

377,895

337,519

289,007

283,187

Tangible common equity*

279,328

261,261

240,899

217,542

211,467

 

 

 

 

 

 

Performance Ratios

 

 

 

 

 

Return on average assets (ROAA) annualized

0.79%

1.11%

0.60%

0.85%

1.07%

Return on total average stockholders equity (ROAE) annualized

6.66%

9.35%

5.02%

7.08%

9.00%

Return on average tangible common equity (ROATCE) annualized*

10.58%

14.01%

7.41%

9.71%

12.36%

Yield on loans annualized

5.73%

5.55%

5.40%

5.30%

5.45%

Cost of interest-bearing deposits annualized

1.00%

0.94%

0.87%

0.82%

0.75%

Cost of total deposits annualized

0.84%

0.80%

0.74%

0.71%

0.65%

Net interest margin annualized

3.93%

3.91%

3.79%

3.68%

3.91%

Efficiency ratio*

58.40%

59.59%

60.82%

63.54%

59.79%

Non-interest income / average assets

0.53%

0.54%

0.58%

0.67%

0.67%

Non-interest expense / average assets

3.00%

2.51%

2.91%

2.71%

2.55%

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

Tier 1 Leverage Ratio

9.36%

9.45%

10.33%

10.32%

10.15%

Common Equity Tier 1 Capital Ratio

11.13%

11.80%

11.56%

13.33%

13.07%

Tier 1 Risk Based Capital Ratio

11.65%

12.41%

12.17%

14.15%

13.89%

Total Risk Based Capital Ratio

12.03%

12.81%

12.54%

14.62%

14.34%

Total stockholders’ equity to total assets

11.67%

12.01%

11.80%

12.13%

11.88%

Tangible common equity to tangible assets*

8.04%

8.70%

8.42%

9.45%

9.18%

Book value per common share

$27.44

$26.09

$25.62

$23.86

$23.44

Tangible book value per common share*

$18.16

$18.22

$17.61

$18.03

$17.57

Tangible book value per diluted common share*

$17.78

$17.85

$17.29

$17.64

$17.24

 

* 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

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

TABLE 2. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

 

June 30,

2018

December 31,

2017

ASSETS

 

 

Cash and due from banks

$46,704

$48,034

Federal funds sold

987

4,161

 

 

 

Cash and cash equivalents

47,691

52,195

 

 

 

Interest-bearing time deposits in other banks

6,991

3,496

Available-for-sale securities

180,238

162,272

Held-to-maturity securities, fair value of $653,012 and $532,744

665,995

535,462

Loans held for sale

43,875

16,344

Loans, net of allowance for loan losses of $10,083 and $8,498

2,401,388

2,094,781

Other real estate owned, net

7,623

7,907

Premises and equipment, net

73,312

63,449

Bank owned life insurance

72,067

68,384

Federal Reserve Bank and Federal Home Loan Bank stock

35,681

24,373

Interest receivable

14,343

12,371

Goodwill

125,485

104,907

Core deposit intangible, net

19,800

10,738

Other

17,696

13,830

 

 

 

Total assets

$3,712,185

$3,170,509

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

Deposits

 

 

Demand

$442,279

$366,530

 

 

 

Total non-interest bearing deposits

442,279

366,530

 

 

 

Savings, NOW, and money market

1,387,623

1,238,984

Time

805,146

776,499

 

 

 

Total interest-bearing deposits

2,192,769

2,015,483

 

 

 

Total deposits

2,635,048

2,382,013

 

 

 

Federal funds purchased and retail repurchase agreements

41,394

37,492

Federal Home Loan Bank advances

557,619

347,692

Bank stock loan

18,375

2,500

Subordinated debentures

14,113

13,968

Contractual obligations

1,734

1,967

Interest payable and other liabilities

10,620

10,733

Total liabilities

3,278,903

2,796,365

 

 

 

 

 

 

Stockholders’ equity

 

 

Common stock

173

161

Additional paid-in capital

377,800

331,339

Retained earnings

81,079

65,512

Accumulated other comprehensive loss

(5,994)

(3,092)

Employee stock loans

(121)

(121)

Treasury stock

(19,655)

(19,655)

Total stockholders’ equity

433,282

374,144

Total liabilities and stockholders’ equity

$3,712,185

$3,170,509

 

 

 

 

 

 

 

 

 

8

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

 

TABLE 3. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands, except per share data)

 

 

Three Months Ended

June 30,

Six Months Ended

June 30,

 

2018

2017

2018

2017

Interest and dividend income

 

 

 

 

Loans, including fees

$33,101

$20,662

$62,149

$40,062

Securities, taxable

4,112

3,224

7,835

5,948

Securities, nontaxable

1,025

862

1,904

1,647

Federal funds sold and other

593

334

1,066

640

 

 

 

 

 

Total interest and dividend income

38,831

25,082

72,954

48,297

 

 

 

 

 

Interest expense

 

 

 

 

Deposits

5,338

2,894

10,056

5,470

Federal funds purchased and retail repurchase agreements

24

13

47

25

Federal Home Loan Bank advances

2,094

734

3,393

1,236

Bank stock loan

156

0

183

   0

Subordinated debentures

299

242

568

474

 

 

 

 

 

Total interest expense

7,911

3,883

14,247

7,205

 

 

 

 

 

Net interest income

30,920

21,199

58,707

41,092

Provision for loan losses

750

628

1,920

1,723

 

 

 

 

 

Net interest income after provision for loan losses

30,170

20,571

56,787

39,369

Non-interest income

 

 

 

 

Service charges and fees

1,729

1,224

3,309

2,449

Debit card income

1,522

1,205

2,775

2,210

Mortgage banking

312

540

625

1,025

Increase in value of bank owned life insurance

508

354

1,160

709

Net gains (loss) from securities transactions

(2)

83

(10)

96

Other

523

556

984

812

 

 

 

 

 

Total non-interest income

4,592

3,962

8,843

7,301

 

 

 

 

 

Non-interest expense

 

 

 

 

Salaries and employee benefits

11,629

8,236

22,520

16,042

Net occupancy and equipment

2,011

1,519

3,813

3,018

Data processing

1,968

1,191

3,642

2,352

Professional fees

844

462

1,559

978

Advertising and business development

665

624

1,284

1,142

Telecommunications

432

330

801

691

FDIC insurance

510

219

754

325

Courier and postage

303

236

558

462

Free nation-wide ATM cost

330

233

622

445

Amortization of core deposit intangible

625

235

1,009

444

Loan expense

145

282

491

459

Other real estate owned

(671)

70

(403)

275

Merger expenses

5,236

136

5,767

1,062

Other

1,948

1,358

3,185

2,662

 

 

 

 

 

Total non-interest expense

25,975

15,131

45,602

30,357

 

 

 

 

 

Income before income taxes

8,787

9,402

20,028

16,313

Provision for income taxes

1,920

3,048

4,450

5,095

 

 

 

 

 

Net income

$6,867

$6,354

$15,578

$11,218

 

 

 

 

 

Net income allocable to common stockholders

$6,867

$6,354

$15,578

$11,218

 

 

 

 

 

Basic earnings per share

$0.45

$0.52

$1.04

$0.93

 

 

 

 

 

Diluted earnings per share

$0.44

$0.51

$1.02

$0.91


9

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

TABLE 4. Non-GAAP Financial Measures (Unaudited)

(Dollars in thousands, except per share data)

 

 

As of and for the three months ended

 

June 30,

2018

March 31,

2018

December 31,

2017

September 30,

2017

June 30,

2017

Total stockholders’ equity

$433,282

$381,487

$374,144

$291,835

$286,058

Less: goodwill

125,485

103,412

104,907

64,587

64,587

Less: core deposit intangibles, net

19,800

10,355

10,738

5,476

5,719

Less: mortgage servicing asset, net

14

16

17

19

20

Less: naming rights, net

1,239

1,249

1,260

1,271

1,282

 

 

 

 

 

 

Tangible common equity

$286,744

$266,455

$257,222

$220,482

$214,450

Common shares issued at period end

15,780,777

14,609,414

14,605,607

12,230,319

12,206,319

RSU shares vested

6,768

11,844

0

0

0

 

 

 

 

 

 

Common shares outstanding at period end

15,787,545

14,621,258

14,605,607

12,230,319

12,206,319

 

 

 

 

 

 

Diluted common shares outstanding at period end

16,131,096

14,923,798

14,873,257

12,501,484

12,441,429

 

 

 

 

 

 

Book value per common share

$27.44

$26.09

$25.62

$23.86

$23.44

 

 

 

 

 

 

Tangible book value per common share

$18.16

$18.22

$17.61

$18.03

$17.57

 

 

 

 

 

 

Tangible book value per diluted common share

$17.78

$17.85

$17.29

$ 17.64

$17.24

 

 

 

 

 

 

Total assets

$3,712,185

$3,176,062

$3,170,509

$2,405,426

$2,408,624

Less: goodwill

125,485

103,412

104,907

64,587

64,587

Less: core deposit intangibles, net

19,800

10,355

10,738

5,476

5,719

Less: mortgage servicing asset, net

14

16

17

19

20

Less: naming rights, net

1,239

1,249

1,260

1,271

1,282

 

 

 

 

 

 

Tangible assets

$3,565,647

$3,061,030

$3,053,587

$2,334,073

$2,337,016

 

 

 

 

 

 

Total stockholders’ equity to total assets

11.67%

12.01%

11.80%

12.13%

11.88%

 

 

 

 

 

 

Tangible common equity to tangible assets

8.04%

8.70%

8.42%

9.45%

9.18%

 

 

 

 

 

 

Total average stockholders’ equity

$413,474

$377,895

$337,519

$289,007

$283,187

Less: average intangible assets and preferred stock

134,146

116,634

96,620

71,465

71,720

 

 

 

 

 

 

Average tangible common equity

$279,328

$261,261

$240,899

$217,542

$211,467

 

 

 

 

 

 

Net income allocable to common stockholders

$6,867

$8,711

$4,274

$5,157

$6,354

Amortization of intangible assets

637

396

349

256

247

Less: Tax effect of intangible assets amortization

134

83

122

90

86

 

 

 

 

 

 

Adjusted net income allocable to common stockholders

$7,370

$9,024

$4,501

$5,323

$6,515

 

 

 

 

 

 

Return on total average stockholders’ equity (ROAE)

annualized

6.66%

9.35%

5.02%

7.08%

9.00%

 

 

 

 

 

 

Return on average tangible common equity (ROATCE) annualized

10.58%

14.01%

7.41%

9.71%

12.36%

 

 

 

 

 

 

Non-interest expense

$25,975

$19,627

$20,718

$16,388

$15,131

Less: merger expenses

5,236

531

3,267

1,023

136

 

 

 

 

 

 

Non-interest expense, excluding merger expenses

$20,739

$19,096

$17,451

$15,365

$14,995

 

 

 

 

 

 

Net interest income

$30,920

$27,787

$24,589

$20,321

$21,199

 

 

 

 

 

 

Non-interest income

$4,592

$4,251

$4,104

$4,035

$3,962

Less: net gains (losses) from securities transactions

(2)

(8)

175

83

 

 

 

 

 

 

Non-interest income, excluding net gains (losses) from securities transactions

$4,594

$4,259

$4,104

$3,860

$3,879

 

 

 

 

 

 

Net interest income plus non-interest income, excluding net gains (losses) from securities transactions

$35,514

$32,046

$28,693

$24,181

$25,078

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

73.14%

61.26%

72.21%

67.29%

60.14%

 

 

 

 

 

 

Efficiency ratio

58.40%

59.59%

60.82%

63.54%

59.79%

 

 

 

 

 

 

 


10

 


Exhibit 99.1

Equity Bancshares, Inc.

PRESS RELEASE - 7/19/2018

 

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

Q2 2018 Results Presentation July 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

Equity Bancshares – About Us As of July 18, 2018 market closing. Median consensus of 2018 analyst expectations, as of June 15, 2018. Based on 15,780,777 shares outstanding as of June 30, 2018. Non-GAAP financial measures. See the non-GAAP reconciliation at the end of this presentation. Recent Price(1) $43.12 Median Consensus Price Target(2) $48.50 Tangible Book Value per Share(4) $18.16 2018 Consensus EPS Estimate(2) $2.77 Price to 2018 Consensus Earnings(1,2) 15.6x Price to Tangible Book Value per Share(1,4) 2.4x Market Capitalization(1,3) $680.5

Slide 4

NASDAQ: EQBK 15.8 million shares outstanding / $680.5 million (1) $3.71 billion 0.95% / 12.23% Annualized Market Cap 59.0% YTD Exchange / Ticker Total Assets YTD ROAA / ROATCE (2) Efficiency Ratio (2) Locations FTEs Loan Portfolio 48 branches in Kansas, Missouri, Arkansas and Oklahoma Approximately 581 56% of loans in commercial real estate, 17% in residential real estate, and 21% in commercial About EQBK Note: All financial data is as of or for period ended June 30, 2018 unless otherwise noted. Market Cap calculated based on July 18, 2018 closing price of $43.12. (2) Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation.

Slide 5

Unemployment Rates(1) Kansas: 3.3% Missouri: 3.3% Arkansas: 3.5% Oklahoma: 3.9% USA: 3.6% Footprint 49 full-service branches in 26 counties across 4 states Strong strategic positioning, with branches along I-70 and I-35 Branches clustered around key areas such as Wichita, Topeka, Kansas City, Tulsa, Southwest Kansas, Southeast Kansas, Northern Oklahoma, Northwest Oklahoma, Western Missouri, and Arkansas Total population of current markets served of approximately 5 million Median household income of $54,385 Key Industries Transportation Manufacturing Healthcare Agriculture Pro Forma Footprint & Demographics Source: S&P Market Intelligence Unemployment rates as of May 2018 EQBK City Bank and Trust Co. (1)

Slide 6

Announced upcoming merger with City Bank and Trust Company of Guymon, Oklahoma Continue merger discussions Continue product development Completed merger with KBC and Adams Total Assets at June 30, 2018 of $3.71 billion Total Loans of $2.41 billion at June 30, 2018 Total Deposits of $2.64 billion at June 30, 2018 Capacity for continued growth Bank level Tier 1 Leverage of 9.33% and Total Capital to Risk Weighted Assets of 11.99% Tangible Common Equity to Tangible Assets of 8.04% (1) Common share count of 15,787,545(1) Expanded annualized core net interest margin year-over-year Larger scale offers more efficiency Efficiency ratio of 59.0%, compared to 60.7% at Jun. 2017 (1) 2018 Second 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 7

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 8

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 (loss) 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% $67,560 87%

Slide 9

Tangible Common Book Value(1) Tangible Common Book Value per Share(1) and Asset Growth 2014: Repurchase 1.3MM shares Repayment of $15.54MM of FCB TARP with a bank stock loan 2015: Acquisition of FFSL IPO TCBV CAGR 2014-2017: 9.2% 2016: Paid off SBLF Restructured term bank stock loan into LOC. 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 2018: Completed First National Bank & Adams Dairy Bank mergers on May 4, 2018 Announced merger with City Bank & Trust on June 12, 2018

Slide 10

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

Slide 11

Share Buybacks Attractive Acquisitions Common Dividends Capital Summary Excess Capital Priorities Total Capital Composition ($M) as of March 31, 2018 Capital Ratios All regulatory capital ratios remain above regulatory minimums to be considered “well capitalized” Strong relationship with regulators at holding company and bank level Efficiently positioned working capital, regulatory capital, and stockholders’ equity 1 2 3 Equity Bancshares, Inc. as of June 30, 2018 Well Capitalized Difference to Ratio Minimum Well Capitalized Tier 1 capital ratio 11.7% 8.0% 3.7% Total RBC ratio 12.0% 10.0% 2.0% Tier 1 leverage ratio 9.4% 5.0% 4.4% Common equity tier 1 11.1% 6.5% 4.6% Tangible common equity / tangible assets 8.0% - - Risk-weighted assets ($M) $2,685 Equity Bank as of June 30, 2018 Well Capitalized Difference to Ratio Minimum Well Capitalized Tier 1 capital ratio 11.6% 8.0% 3.6% Total RBC ratio 12.0% 10.0% 2.0% Tier 1 leverage ratio 9.3% 5.0% 4.3% Common equity tier 1 11.6% 6.5% 5.1% Risk-weighted assets ($M) $2,685 - - - -

Slide 12

Loan Portfolio Composition & Growth Loan Composition Loan Composition 2013 2014 2015 2016 2017 Jun. 2018 '13-'17CAGR ($ in 000s) Commercial Real Estate $,341,512 $,364,096 $,397,017 $,593,108 $,987,661 $1,226,397 0.30409999999999998 Commercial ,139,365 ,183,100 ,262,032 ,348,465 ,507,519 ,503,716 0.38140000000000002 Agricultural Real Estate 22,092 17,083 18,180 38,331 86,486 ,118,241 0.40660000000000002 Total Commercial ,502,969 ,564,279 ,677,229 ,979,904 1,581,666 1,848,354 0.33169999999999999 Residential Real Estate ,125,395 ,134,455 ,250,216 ,338,387 ,376,705 ,409,571 0.3165 Consumer 7,961 7,875 17,103 40,902 49,361 54,464 0.57799999999999996 Agricultural 23,969 19,267 15,807 24,412 95,547 99,082 0.41299999999999998 Total 1-4 Family & Other ,157,325 ,161,597 ,283,126 ,403,701 ,521,613 ,563,117 0.34939999999999999 Total Loans $,660,294 $,725,876 $,960,355 $1,383,605 $2,103,279 $2,411,471 0.33589999999999998 Yield on Loans 5.6300000000000003E-2 5.6300000000000003E-2 5.3100000000000001E-2 4.9799999999999997E-2 5.4300000000000001E-2 5.6399999999999999E-2 Loan Composition 2013 2014 2015 2016 2017 Jun. 2018 Commercial 0.76173492413985289 0.77737657671558225 0.70518610305564089 0.70822525214927667 0.75200009128603484 0.76648402572537677 1-4 Family & Other 0.23826507586014714 0.22262342328441773 0.29481389694435911 0.29177474785072327 0.24799990871396518 0.23351597427462326

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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% 1.23% $0.33

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Core Deposit Franchise Deposit Portfolio Mix Deposit Portfolio Mix Deposit Composition 2013 2014 2015 2016 2017 Jun. 2018 '13-'17CAGR ($ in 000s) Time Deposits $,363,210 $,342,160 $,438,612 $,553,158 $,776,499 $,805,146 0.2092 Signature Deposits ,584,109 ,639,017 ,777,302 1,077,293 1,605,514 1,829,902 0.28760000000000002 Total Deposits $,947,319 $,981,177 $1,215,914 $1,630,451 $2,382,013 $2,635,048 0.25929999999999997 Cost of Deposits* 5.3E-3 4.8999999999999998E-3 5.4999999999999997E-3 6.4999999999999997E-3 7.9000000000000008E-3 9.7000000000000003E-3 * Interest Bearing Deposit Portfolio Mix 2013 2014 2015 2016 2017 Jun. 2018 Signature Deposits 0.61659166553188527 0.65127596753694794 0.63927383022154527 0.6607331345744214 0.67401563299612555 0.69444731177572472 Time Deposits 0.38340833446811473 0.348724032463052 0.36072616977845473 0.33926686542557855 0.32598436700387445 0.30555268822427523

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Footprint & Target

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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: S&P Market Intelligence. Deposit and market share data as of June 30, 2017. Employment data as of May 31, 2018. Equity Bancshares, Inc. operating market reported above includes all bank locations and counties in which Equity Bank operates, including all completed mergers subsequent to June 30, 2017, and the planned merger with City Bank and Trust Company. 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 City Bank and Trust Co., ranks in the Top 10 for market share in 20 of the 26 counties served and ranks in the Top 5 in 17 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% May 2018 Unemployment Rate 3.3% 3.3% 3.5% 3.9% 3.6% Source: S&P Market Intelligence 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 Seaboard Foods 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 $72,954 Interest expense 5433 6766 9202 16691 14247 Net interest income 41361 46262 52597 86002 58707 Provision for loan losses 1200 3047 2119 2953 1920 Net interest income after provision 40161 43215 50478 83049 56787 Other income 8674 9802 10466 15440 8843 Other expenses 35645 38575 47075 67463 45602 Income before income taxes 13190 14442 13869 31026 20028 Income taxes 4203 4142 4495 10377 4450 Net income 8987 10300 9374 20649 15578 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 $15,578

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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 43281 Cash and cash equivalents (1) $37,702 $62,074 $38,845 $55,691 $54,682 Investment securities (2) 318314 452362 578093 722107 881914 Net loans 720810 958353 1382003 2111125 2445263 Other assets 97689 112938 193251 281586 330326 Total assets $1,174,515 $1,585,727 $2,192,192 $3,170,509 $3,712,185 LIABILITIES & STOCKHOLDERS' EQUITY Deposits $,981,177 $1,215,914 $1,630,451 $2,382,013 $2,635,048 Borrowings 70370 194064 293909 401652 631501 Other liabilities 5239 8516 9868 12700 12354 Total liabilities 1056786 1418494 1934228 2796365 3278903 Stockholders' Equity 117729 167233 257964 374144 433282 Total liabilities and stockholders' equity $1,174,515 $1,585,727 $2,192,192 $3,170,509 $3,712,185

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Capitalization (1) Total common equity less goodwill and intangibles divided by shares outstanding as of period end. Non-GAAP financial measure. See the non-GAAP reconciliation at the end of this presentation. Maintaining a strong regulatory capital position Ratio 42004 42369 42735 43100 43281 Leverage Ratio 9.6199999999999994E-2 9.4700000000000006E-2 0.1181 0.1033 9.3600000000000003E-2 Tier 1 Risk-Based Capital Ratio 0.13159999999999999 0.13850000000000001 0.14249999999999999 0.1217 0.11650000000000001 Total Risk-Based Capital Ratio 0.1386 0.14349999999999999 0.1467 0.12540000000000001 0.1203 Common Equity Tier-1 Capital to RWA NA 0.1235 0.13339999999999999 0.11559999999999999 0.1113 Tangible Book Value per Common Share(1) $13.54 $15.97 $16.64 $17.61 $18.16

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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) June 30, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2014 December 31,2012 Total stockholders’ equity $,433,282 $,374,144 $,257,964 $,167,233 $,117,729 $,138,169 Less: preferred stock 0 0 0 16,372 16,359 31,884 Less: goodwill ,125,485 ,104,907 58,874 18,130 18,130 18,130 Less: core deposit intangibles, net 19,800 10,738 4,715 1,549 1,107 1,957 Less: mortgage servicing asset, net 14 17 23 29 0 Less: naming rights, net 1,239 1,260 0 0 0 0 Tangible common equity $,286,744 $,257,222 $,194,352 $,131,153 $82,133 $86,198 Common shares outstanding at period end (1) 15,787,545 14,605,607 11,680,308 8,211,727 6,067,511 7,431,513 Book value per common share (1) $27.444545684588707 $25.61646359511111 $22.085376515756259 $18.371409570727327 $16.707015446696349 $14.301932863469389 Tangible book value per common share (1) $18.162671903706372 $17.611181787925695 $16.639287251671785 $15.971427204046117 $13.536522636712155 $11.598983948490705 Total assets $3,712,185 $3,170,509 $2,192,192 $1,585,727 $1,174,515 $1,188,850 Less: goodwill ,125,485 ,104,907 58,874 18,130 18,130 18,130 Less: core deposit intangibles, net 19,800 10,738 4,715 1,549 1,107 1,957 Less: mortgage servicing asset, net 14 17 23 29 0 Less: naming rights, net 1,239 1,260 0 0 0 0 Tangible assets $3,565,647 $3,053,587 $2,128,580 $1,566,019 $1,155,278 $1,168,763 Tangible common equity to tangible assets 8.0418504692135823E-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 and vested RSU shares 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) June 30, 2018 December 31, 2017 December 31, 2016 December 31,2015 December 31,2014 Total average stockholders' equity $,395,783 $,293,798 $,168,822 $,125,808 $,123,181 Less: average intangible assets and preferred stock ,125,438 76,320 25,882 19,165 37,924 Average tangible common equity (3) $,270,345 $,217,478 $,142,940 $,106,643 $85,257 Net income allocable to common stockholders $15,578 $20,649 $9,373 $10,123 $8,279 Amortization of intangibles 1,033 1,070 419 275 363 Less: tax effect of amortization of intangibles (2) 217 375 147 96 127 Adjusted net income allocable to common stockholders $16,394 $21,344 $9,645 $10,302 $8,515 Return on average tangible common equity (ROATCE) (4) 0.12228716549929192 9.8143260467725466E-2 6.7475863998880656E-2 9.6602683720450472E-2 9.98744971087418E-2 Non-interest expense $45,602 $67,463 $47,075 $38,575 $35,645 Less: merger expenses 5,767 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 $39,835 $62,111 $41,723 $36,568 $35,645 Net interest income $58,707 $86,002 $52,597 $46,262 $41,361 Non-interest income $8,843 $15,440 $10,466 $9,802 $8,674 Less: net gains (losses) from securities transactions -10 271 479 756 986 Less: net gain on acquisition 0 0 0 682 0 Non-interest income, excluding net gains (losses) from securities transactions and net gain on acquisition $8,853 $15,169 $9,987 $8,364 $7,688 Efficiency ratio 0.58962403789224394 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 and vested RSU shares (2) Tax rates used in this calculation were 21% for 2018 and 35% for previous years (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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investor.equitybank.com