NASDAQ: EQBK Mergers with First National Bank of Liberal and Adams Dairy Bank

Transcription

1 NASDAQ: EQBK Mergers with First National Bank of Liberal and Adams Dairy Bank December 18, 2017

2 Special Note Regarding Forward Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity s management with respect to, among other things, future events and Equity Bancshares, Inc. s ( Equity ) 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 forwardlooking 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, 2017 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. 2

3 Additional Information for Investors and Shareholders Important Additional Information This communication shall not constitute an offer to sell, a solicitation of an offer to sell, or the solicitation or an offer to buy any securities. Investors and security holders are urged to carefully review and consider Equity s public filings with the SEC, including but not limited to its Annual Reports on Form 10-K, its proxy statements, its Current Reports on Form 8-K and its Quarterly Reports on Form 10-Q. The documents filed by Equity with the SEC may be obtained free of charge at Equity s investor relations website at investor.equitybank.com or at the SEC s website at Alternatively, these documents, when available, can be obtained free of charge from Equity upon written request to Equity Bancshares, Inc., Attn: Investor Relations, 7701 East Kellogg Drive, Suite 300, Wichita, Kansas or by calling (316) In connection with the proposed merger transactions, Equity (i) intends to file a registration statement on Form S-4 with the SEC that will include a proxy statement of Kansas Bank Corporation ( KBC ) and a prospectus of Equity, and (ii) intends to file a registration statement on Form S-4 with the SEC that will include a proxy statement of Adams Dairy Bancshares, Inc. ( ADB ) and a prospectus of Equity, and (iii) will file other documents regarding the proposed KBC and ADB merger transactions with the SEC. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO CAREFULLY READ THE ENTIRE APPLICABLE REGISTRATION STATEMENT AND PROXY STATEMENT/PROSPECTUS, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED MERGER TRANSACTIONS. The applicable proxy statement/prospectus will be sent to the stockholders of each institution seeking the required stockholder approvals. Investors and security holders will be able to obtain the registration statements and the proxy statement/prospectuses free of charge from the SEC s website or from Equity by writing to the address provided above. Equity, KBC, and ADB and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from their respective stockholders in connection with the proposed merger transactions. Information about Equity s participants may be found in the definitive proxy statement of Equity relating to its 2017 Annual Meeting of Stockholders filed with the SEC on March 22, The definitive proxy statement can be obtained free of charge from the sources indicated above. Additional information regarding the interests of such participants will be included in the proxy statement and other relevant documents regarding the proposed mergers. 3

4 Equity Bancshares, Inc. About Us Recent Price (1) $35.10 Median Consensus Price Target (2) $40.00 Tangible Book Value per Share (3) $ Consensus EPS Estimate (2) $ Consensus EPS Estimate (2) $2.65 Price to 2018 Consensus Earnings (1)(2) 14.0 x Price to 2019 Consensus Earnings (1)(2) 13.2 x Price to Tangible Book Value per Share (1)(2) 1.99 x Market Capitalizations ($mm) (1) (4) $512.6 million 80.0% 60.0% 40.0% 20.0% 0.0% (20.0%) (40.0%) Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 EQBK (+56.0%) KBW Nasdaq Regional Bank (+39.9%) Nasdaq Bank (+33.2%) (1) As of 12/15/17 market closing (2) Per FactSet Research Systems, as of 12/15/17 (3) Tangible book value per share as reported at 9/30/17 (4) Includes shares issued in connection with EQBK s November 2017 acquisitions of Eastman National Bancshares, Inc. and Cache Holdings, Inc. 4

5 Equity Bancshares, Inc. Company Profile EQBK (Nasdaq ticker) Current Footprint (42 Branches) $3.0 Billion Total Assets (1) $513 Million Market Cap (2) (as of 12/15/17) Deposit franchise: Kansas (18 branches with $934mm in deposits) (3) Missouri (14 branches with $547mm in deposits) (3) Arkansas (5 branches with $350mm in deposits) (3) Oklahoma (5 branches with $510mm in deposits) (1)(3) Partnerships with FNB Liberal and Adams add: SW KS & KC (6 branches with $392mm in deposits) (3)(4) Acquisitions, repositioning and organic growth are key elements of the EQBK strategy History of strong asset quality Successfully integrated 15 acquisitions (Since 2003) Executive officers and directors beneficially own approximately 14.1% Completed Initial Public Offering in November 2015 ($50.2 million) 2015 Best In Business winner, Wichita Business Journal 2013 and 2014 Best Places to Work, Wichita Business Journal Source: SNL Financial, EQBK Management provided information, and the Wichita Business Journal (1) Pro forma for EQBK s November 2017 acquisitions of Cache Holdings, Inc. and Eastman National Bancshares, Inc. (2) Includes shares issued in connection with EQBK s November 2017 acquisitions of Eastman National Bancshares, Inc. and Cache Holdings, Inc. (3) Per SNL Financial and the 2017 FDIC Summary of Deposits; data as of 6/30/17 (4) Deposits to be added with the announced mergers with First National Bank of Liberal and Adams Dairy Bank 5

6 Core Components of EQBK s Story Performance Growth in Commercial Banking Franchise Commercial banking customers (70% of loans) Three metro markets and four-state presence Manufacturing, transportation, business Strong Operating Performance Delivered earnings and EPS growth Above peer asset quality through cycles Leveraging infrastructure to achieve efficiencies Proven M&A Acquirer and Integrator Successful track record Disciplined merger metrics Ability to integrate, operate and enhance revenue Opportunity Growth Oriented Business Plan Focus on commercial banking Continue organic and acquisition initiatives Leverage efficient, scalable infrastructure Enhance revenue through identified synergies Hire talented, entrepreneurial employees Continue offering sophisticated, improved and customized banking products Market Opportunity Numerous acquisition opportunities Gathering low cost deposits and deploying into our growing target lending markets Management Team & Board Strength Large bank experience with community bank care Success in attracting clients from larger banks Deep alignment with shareholders C-Suite and top-line managers have significant ownership Top-shelf credit culture 6

7 Pro Forma Footprint & Demographics EQBK First National Bank of Liberal (5) Adams Dairy Bank (1) 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 $52,130 Source: SNL Financial & The Nielsen Company (1) Unemployment rate as of October 2017 Unemployment Rates (1) Kansas: 3.0% Missouri: 2.5% Arkansas: 3.2% Oklahoma: 4.1% USA: 3.9% Key Industries Transportation Manufacturing Healthcare Agriculture 7

8 Merger with First National Bank of Liberal/Hugoton (Kansas Bank Corporation)

9 First National Bank of Liberal - Overview FNB Footprint Selected Financial Highlights (1) Total Assets $ 310,079 Gross Loans 169,948 Deposits 274,298 Loans / Deposits 62.0 % % Core Deposits (2) 75.1 Wholesale Funding (%) (3) 0.0 Total Bank Level Equity $ 30,923 First National Bank of Liberal (5) Overview First National Bank of Liberal is headquartered in Liberal, KS Founded in 1900 and operates four branches in Liberal with an additional branch in Hugoton, KS Attractive core deposits in stable markets Expansion of Western Kansas footprint High profitability, with attractive ROAA and ROAE ROAA 1.04 % ROAE Net Interest Margin 3.23 Efficiency Ratio NPAs excl. TDRs / Assets 0.06 % NPAs excl. TDRs / Loans + OREO 0.10 NCOs / Average Loans (0.05) Reserves / NPLs (excl. TDRs) NM Reserves / Loans 1.08 % Total Equity / Assets 9.97 % CET1 Ratio Total Capital Ratio Kansas Bank Corp. insider ownership remains invested in EQBK Dollars in thousands. Source: SNL Financial (1) Data included in Selected Financial Highlights is at the bank level at or for the last twelve months ended 9/30/17, unless otherwise noted; per SNL Financial (2) Core deposits defined as all deposits, excluding CDs (3) (Brokered deposits + listing service deposits) / Total Deposits 9

10 FNB of Liberal Deposit Market Share Southwest Kansas Market Presence Logical market expansion West of Wichita home office and South of 2017 Western Kansas expansion EQBK First National Bank of Liberal (5) EQBK gains entry into southwest Kansas Meaningful addition to Kansas footprint of 18 current bank offices 64 basis point cost of deposits including 70% signature deposits Rank Institution Kansas Bank Corp. (KS) Light Bancshares Corp. (KS) FirstSun Capital Bancorp (CO) Beaver Bancorp Inc. (OK) Seward County (Kansas) Branches Deposits in Market ($000) Market Share (%) 4 251, , , , Total in Market: 8 441, Source: SNL Financial, deposit data per FDIC summary of deposits as of June 30,

11 FNB of Liberal Liberal, Kansas Market FNB of Liberal is headquartered in Liberal and operates within Seward County and Stevens County FNB of Liberal market share rank: #1 (57%) Liberal & Hugoton, KS Seward County has a median household income of $51,377, with 46% of households with income of greater than $50,000 and 5% greater than $150,000. Retail distribution center for consumers from five states: Kansas, Oklahoma, Texas, Colorado, New Mexico Economy primarily agricultural with ag business support. Beef industry, including ranches, feedlots and packing plants is a driver of local economy. Liberal home to Southwest Regional Medical Center and Seward County Community College Notable Employers Sources: SNL Financial, Fiserv BancIntelligence, cityofliberal.org Note: Deposit data per the 2017 FDIC Summary of Deposits. 11

12 Transaction Overview Structure EQBK to acquire 100% of Kansas Bank Corporation First National Bank of Liberal is expected to be merged into Equity Bank in Q Purchase Price Valuation Multiples Social Required Approvals & Expected Closing Deal value: Approximately $45.1 million (1) Consideration: 820,904 shares of EQBK Class A common stock and $16.8 million in cash (~ 63% stock / 37% cash) (1) P/TBV = 141% based on September 30, 2017 tangible book value at announcement (1)(2) ~17.0x LTM earnings, 11.1x 2018 earnings est. incl. cost saves (1)(2) Core deposit premium of 6.3% at announcement (1)(2) Ownership Split (at announcement): 95% EQBK / 5% FNB of Liberal FNB of Liberal CEO and key executive managers to be retained Customary regulatory approval FNB of Liberal shareholder approval Q Capital Ratios Remain well-capitalized based on all regulatory capital ratios (1) Assumes EQBK price of $34.49 (2) Source: EQBK Management and Kansas Bank Corporation Management; Kansas Bank Corp. tangible book value is consolidated and as of 9/30/17; LTM earnings are for the last twelve months ended 9/30/17 12

13 Compelling Strategic Partnership Structured within EQBK s merger metrics and discipline Financially Attractive $0.06 EPS Accretive in 2018 and $0.10 EPS Accretive in % dilutive to tangible book value with a TBV earnback of 2.8 years using the crossover method 16%+ IRR Similar customer approach, credit cultures and operating styles Low-Risk Profile Retention of key local management team members Comprehensive due diligence, no concentration concerns, including CRE Strong pro forma capital ratios Cost savings primarily from operating redundancies Strategic Value FNB of Liberal is a high-performing community bank, ranking No. 1 in deposit market share in region Entry into Southwest KS market with high-quality, low-cost core deposits Leverages EQBK operating platform and back office support Strong credit quality, and similar credit philosophy 13

14 Key Transaction Assumptions Cost Savings Expected annual non-interest expense savings of approximately 23%, or approximately $1.1 million, with 100% being achieved during 2018 Revenue Enhancements Identified, but none included in pro forma projections One-time Merger Related Costs Approximately $6.1 million pre-tax Loan Credit Mark Gross ($3.2 million); Net of ALLL ($1.4 million) Core Deposit Intangible 1.25% amortized over 10 years using SOYD methodology Other Purchase Accounting Adjustments Operation and Conversion Pre-closing Condition $0.4 million interest rate discount on loan portfolio $0.8 million interest rate discount on deposits Kansas Bank Corporation will merge, convert and integrate into Equity during Q FNB of Liberal to deliver minimum common equity of $29.3 million (1) (1) Inclusive of FNB of Liberal s portion of one-time merger related costs 14

15 Merger with Adams Dairy Bank (Adams Dairy Bancshares, Inc.)

16 Adams Dairy Bank Overview Adams Footprint Selected Financial Highlights (1) Total Assets $ 126,749 Gross Loans 90,783 Deposits 102,193 Loans / Deposits 88.8 % % Core Deposits (2) 72.0% Total Bank Level Equity $ 11,693 Adams Dairy Bank (1) Overview Adams Dairy Bank is headquartered in Blue Springs, Mo. Operates one branch in the Kansas City MSA Adjacent to existing Equity KC footprint Strong profitability, ROAA and ROAE Attractive expansion of a growing and dynamic metro market High-caliber, long-tenured, management team ROAA 0.85 % ROAE 9.32 Net Interest Margin 3.71 Efficiency Ratio NPAs excl. TDRs / Assets 0.82 % NPAs excl. TDRs / Loans + OREO 1.14 NCOs / Average Loans 0.66 Reserves / NPLs (excl. TDRs) % Reserves / Loans 1.01 Total Equity / Assets 9.23 % CET1 Ratio Total Capital Ratio Dollars in thousands. Source: SNL Financial (1) Data included in Selected Financial Highlights is at the bank level at or for the last twelve months ended 9/30/17, unless otherwise noted. (2) Core deposits defined as all deposits, excluding jumbo CDs 16

17 Adams Dairy Bank Deposit Market Share KC Market Presence Logical market expansion Blue Springs adjacent to northeast of Equity s Lee s Summit, Mo. presence EQBK gains additional market within KC MSA Meaningful market entry via a rapidly expanding franchise Attractive core deposit base EQBK Adams Dairy Bank (1) Blue Springs, MO Rank Institution Branches Deposits in Market ($000) Market Share (%) 1 U.S. Bancorp (MN) 2 173, Central Bancompany Inc. (MO) UMB Financial Corp. (MO) Commerce Bancshares Inc. (MO) Adams Dairy Bancshares Inc , , , , Total in Market: 16 1,010, Source: SNL Financial, deposit data per the 2017 FDIC Summary of Deposits 17

18 Adams Dairy Bank Kansas City Market Jackson County, Mo. And Blue Springs, Mo. Blue Springs, Missouri, with population of 54,431, is No. 8 Kansas City MSA suburb ranked by population, with Mass Middle Class consumer profile as largest segment. Adams Dairy deposit market share rank in Blue Springs, MO: #5 (10.35%) Blue Springs neighbors Independence, Mo. And Lee s Summit, Mo., with easy commuter access to downtown KC via I-70. Adams Dairy Landing on Adams Dairy Parkway is major retail shopping draw for Independence, Blue Springs, and Lee s Summit Jackson County population of 697,681 and median HHI of $52,980. Median HHI expected to increase by 10.50% from Jackson County grew by 3.90% from 2010 through 2018 Kansas City MSA s economy is diverse, with numerous industries accounting for significant employment Healthcare, Telecom, Professional Services, Federal Government, Technology, Transportation, and Wholesale Retail/Trade Notable Employers Sources: SNL Financial, Fiserv BancIntelligence, bluesspringsgov.com, edckc.com, inedc.biz, bizjournals.com/kc Note: Deposit data per the 2017 FDIC Summary of Deposits. 18

19 Transaction Overview Structure Purchase Price Valuation Multiples Social Required Approvals & Expected Closing EQBK to acquire 100% of Adams Dairy Bancshares, Inc. Continues EQBK strategy of community bank consolidation Adams Dairy Bank is expected to be merged into Equity Bank in Q Deal value: Approximately 15.8 million (1) Exchange Ratio: EQBK shares and $5.51 in cash Consideration: 344,131 shares of EQBK Class A common stock and $4.0 million in cash (75.0% stock / 25.0% cash) (1) P/TBV = 153% based on September 30, 2017 tangible book value at announcement (1)(2) ~16.7x LTM earnings, 9.4x 2018 earnings est. incl. cost saves (1)(2) Core deposit premium of 7.4% at announcement (1)(2) Ownership Split (at announcement): 98% EQBK / 2% Adams Dairy Integrate into existing Kansas City market Customary regulatory approval Adams Dairy shareholder approval Q Capital Ratios Remain well-capitalized based on all regulatory capital ratios (1) Assumes EQBK price of $34.49 (2) Source: EQBK Management and Adams Dairy Management; Adams Dairy tangible book value is consolidated and as of 9/30/2017; Adams Dairy LTM earnings are for the last twelve months ended 9/30/

20 Compelling Strategic Partnership Structured within EQBK s merger metrics and discipline Financially Attractive $0.03 EPS Accretive in 2018 and $0.05 EPS Accretive in % dilutive to tangible book value with a TBV earnback period of 2.7 years using the crossover method 17%+ IRR Similar customer approach, credit cultures and operating styles Low-Risk Profile Long-term management team members Comprehensive due diligence, no concentration concerns, including CRE Strong pro forma capital ratios Cost savings primarily from operating redundancies Strategic Value Expands Equity footprint in the Kansas City MSA EQBK s largest metro market Core deposits and quality loan production Leverages EQBK operating platform and back office support With pro forma deposits of nearly $400 million, deal would make Kansas City EQBK s largest market presence 20

21 Key Transaction Assumptions Cost Savings Expected pre-tax non-interest expense savings of approximately 32%, or approximately $0.7 million in 2018 and $1.0 million in 2019, with 100% being achieved in 2018 Revenue Enhancements None included in pro forma projections One-time Merger Related Costs Approximately $2.8 million pre-tax Loan Credit Mark Gross ($1.2 million); Net of ALLL (-$0.1 million) Core Deposit Intangible 1.50% amortized over 10 years using SOYD methodology Other Purchase Accounting Adjustments Operation and Conversion Pre-closing Condition $0.3 million interest rate mark on loan portfolio $0.1 million interest rate mark on securities $0.5 million mark on OREO $0.2 million interest rate mark on deposits Adams Dairy Bancshares, Inc. will merge, convert and integrate into Equity during Q Adams Dairy to deliver minimum common equity of $9.7 million 21

22 Combined Summary Impact

23 Pro Forma Footprint EQBK (42) First National Bank of Liberal (5) Adams Dairy Bank (1) 23

24 Pro Forma Financial Impact EPS Impact ~4% accretive in 2018 ($0.09) ~5% accretive in 2019 ($0.14) Tangible Book Value Impact ~2.5% dilutive to tangible book value at close Tangible book value earn-back period estimated to be approximately 2.7 years, using the cross-over method Pro Forma Consolidated Capital ~8.2% Tangible Common Equity / Tangible Assets ~8.9% Tier 1 Leverage Ratio ~11.2% Common Equity Tier I Capital Ratio ~12.1% Total Risk-Based Capital Ratio Total assets of $3.5 billion Pro Forma Highlights Total deposits of $2.8 billion Well-diversified loan portfolio; Loan to deposits of 83% Improved core deposit profile and reduction of deposit costs 24

25 Pro Forma Loan & Deposit Composition EQBK Stand Alone FNB of Liberal Stand Alone Adams Dairy Stand Alone Pro Forma Total: $2,037 million Total: $170 million Total: $91 million Total: $2,297 million Loan Mix Commercial & Industrial 28% Commercial R.E. 39% Consumer & Other 5% Construction 9% Residential R.E. 19% Commercial & Industrial 11% Commercial R.E. 62% Consumer & Other 9% Agriculture 12% Construction 2% Residential R.E. 4% Commercial R.E. 52% Commercial & Industrial 5% Consumer & Other 4% Construction 3% Residential R.E. 36% Commercial & Industrial 26% Commercial R.E. 41% Consumer & Other 6% Construction 8% Residential R.E. 19% Yield on Loans: 5.40% Yield on Loans: 5.18% Yield on Loans: 5.00% Yield on Loans: 5.37% Loans / Deposits: 86.1% Loans / Deposits: 62.0% Loans / Deposits: 89.2% Loans / Deposits: 83.7% Total: $2,366 million Total: $274 million Total: $102 million Total: $2,743 million Deposit Mix MMDA & Other Savings 28% Retail Time Deposits 11% Jumbo Time Deposits 23% Demand Deposits 15% NOW & Other Trans. Acct. 23% Retail Time Deposits 6% MMDA & Other Savings 27% Jumbo Time Deposits 24% Demand Deposits 21% NOW & Other Trans. Accounts 22% Retail Time Deposits 8% MMDA & Other Savings 28% Jumbo Time Deposits 28% Demand Deposits 29% NOW & Other Trans. Accounts 7% MMDA & Other Savings 28% Retail Time Deposits 11% Jumbo Time Deposits 23% Demand Deposits 16% NOW & Other Trans. Acct. 22% Cost of Deposits: 0.69% Cost of Deposits: 0.64% Cost of Deposits: 0.52% Cost of Deposits: 0.68% Source: SNL Financial Note: EQBK loan and deposit data per SNL Financial as of 9/30/2017. Yield and cost for 3Q 17, Pro forma for Eastman National Bancshares, Inc. and Cache Holdings, Inc. Note: FNB Liberal and Adams Dairy loan and deposit data per bank-level regulatory filings as of 3/31/2017. Yield and cost for 3Q 17 25

26 Benefits to the Combined Shareholders Shareholders Strategically and financially attractive transactions Successful Board and Management teams with strong community ties Improved liquidity for FNB Liberal and Adams Dairy shareholders Opportunity for increased shareholder value for all companies Customers Community banking model with a focus on serving local clients Additional branch network presence in Kansas and Kansas City Ability to provide enhanced products and services with larger lending limits Community bank market leader in Southwest Kansas Employees Similar cultures and markets allows for a simplified employee transition Key personnel to lead markets and join Equity s leadership teams Long-term dedicated management and leadership teams Larger size increases public identity and recruiting capability 26

27 Summary FNB Liberal and Adams Dairy Bank join franchise allowing for continued growth and development of products and services in community markets and metropolitan markets Second consecutive dual-track merger, demonstrating discipline and commitment to execution in diverse range of markets Strategic acquisitions that enhance franchise value through expansion of existing Kansas footprint and development of Kansas City metro area, consistent with business plan and shareholder value proposition Clear execution pathway combined with compelling transaction economics with attractive EPS accretion and anticipated shareholder returns Integration experience and retention of experienced and talented local management minimizes execution risk Well-positioned for future opportunities 27

28 Supplemental Information

29 Continue Building Value via Strategic Execution Acquisition of National Bank of Andover Rebrand as Equity Bank 2005 Purchase of 2 Wichita branches from Hillcrest Bancshares Phase I Phase II Phase III Start-Up Acquisition of Charter of FNB of Sarcoxie, MO Acquisition of Mortgage Centre, LC Opened 2 branches in MO 2007 Signature Bank KC acquisition 2008 Ellis State Bank acquisition (Ellis/Hays) Branch opened in Lee s Summit, MO 2009 Growth $8.8mm of TARP issued Opened 2 branches in Overland Park, KS 2010 $20.0mm Capital Raise to fund growth 2011 Repaid TARP with SBLF Purchase of 4 branches from Citizens Bancshares (Topeka) Leverage Infrastructure Profitably present 2012 First Community Bancshares (FCB) acquisition $20.4mm Capital Raise 2013 Integrate FCB and double earnings. CFO and CRO roles filled. Implement Repositioning Initiatives 2014 Repurchased 1.3mm shares Refinanced TARP with Loan Close/Sell 3 branches & opened Wichita branch 2015 First Indep. (FFSL) acquisition IPO 2016 Community First (CFBI) merger Completed $35.4mm private placement capital raise (PIPE) Prairie State, Eastman National, and Patriot Bank mergers Total Assets ROA $287mm 0.49% * ** $610mm *** 0.46% $3.5bn 1.00%+ Note: Yellow shading indicates M&A activity; gray shading indicates capital activity * Data as of 12/31/2007. ** Data as of 12/31/2011. *** Data as of 3/31/2018, pro forma for KBC and Adams transactions. Source: Company management 29

30 FNB of Liberal Financial Highlights (Dollars in Thousands) At or for the year ended, '12 - '16 At or for the quarter ended, 12/31/13 12/31/14 12/31/15 12/31/16 CAGR 12/31/16 03/31/17 06/30/17 09/30/17 Balance Sheet Total Assets $ 280,646 $ 309,106 $ 311,362 $ 319, % $ 319,946 $ 311,257 $ 318,481 $ 310,079 Total Net Loans 137, , , , % 176, , , ,111 Deposits 242, , , , % 284, , , ,298 Total Equity 23,075 25,992 27,928 28, % 28,203 29,283 30,627 30,923 Balance Sheet Ratios Loans / Deposits (%) 57.8 % 59.0 % 59.4 % 62.7 % 62.7 % 61.9 % 60.0 % 62.0 % Total Equity/ Total Assets (%) Tangible Equity/ Tangible Assets (%) Leverage Ratio (%) Tier 1 Common Ratio (%) Tier 1 Ratio (%) Total Risk Based Capital Ratio (%) Income Statement Net Interest Income $ 8,716 $ 9,239 $ 9,686 $ 10,049 $ 2,491 $ 2,431 $ 2,404 $ 2,435 Loan Loss Provision - (125) - 1,025 1, Noninterest Income 1,183 1,091 1,188 1, Total Noninterest Expense 6,465 6,757 6,807 6,785 1,612 1,619 1,667 1,688 Net income 2,715 2,861 2,995 3, % Profitability Ratios ROAA (%) 0.98 % 0.96 % 0.97 % 1.09 % 0.85 % 0.93 % 1.00 % 1.04 % ROAE (%) Net Interest Margin (%) Efficiency Ratio (%) Noninterest Income / Avg. Assets (%) Asset Quality NPAs / Loans + OREO (%) 0.37 % - % - % 0.68 % 0.68 % 0.49 % 0.14 % 0.10 % NCOs / Avg Loans (%) (0.01) (0.05) NPAs + 90+PD / Loans + OREO (%) ALLL / Gross Loans (%) NPAs / Tier 1 + ALLL (%) Source: SNL Financial Note: Bank level data used 30

31 Adams Dairy Bank Financial Highlights (Dollars in Thousands) At or for the year ended, '12 - '16 At or for the quarter ended, 12/31/13 12/31/14 12/31/15 12/31/16 CAGR 12/31/16 03/31/17 06/30/17 09/30/17 Balance Sheet Total Assets $ 77,495 $ 94,236 $ 110,028 $ 107, % $ 107,778 $ 127,446 $ 131,101 $ 126,749 Total Net Loans 48,991 62,400 64,665 74, % 74,254 84,653 89,091 89,865 Deposits 60,845 77,278 83,458 85, % 85, , , ,193 Total Equity 7,916 8,977 9,767 11, % 11,110 11,302 11,489 11,693 Balance Sheet Ratios Loans / Deposits (%) 83.8 % 85.0 % 85.0 % 90.7 % 90.7 % 86.3 % 87.5 % 88.8 % Total Equity/ Total Assets (%) Tangible Equity/ Tangible Assets (%) Leverage Ratio (%) Tier 1 Common Ratio (%) Tier 1 Ratio (%) Total Risk Based Capital Ratio (%) Income Statement Net Interest Income $ 2,540 $ 3,233 $ 3,470 $ 3,620 $ 917 $ 932 $ 1,021 $ 1,087 Loan Loss Provision Noninterest Income Total Noninterest Expense 2,232 2,361 2,378 2, Net income , % Profitability Ratios ROAA (%) 0.43 % 0.88 % 1.01 % 0.86 % 0.93 % 0.67 % 1.04 % 0.85 % ROAE (%) Net Interest Margin (%) Efficiency Ratio (%) Noninterest Income / Avg. Assets (%) Asset Quality NPAs / Loans + OREO (%) 3.63 % 3.69 % 3.20 % 2.59 % 2.59 % 2.28 % 2.05 % 2.11 % NCOs / Avg Loans (%) (0.09) NPAs + 90+PD / Loans + OREO (%) ALLL / Gross Loans (%) NPAs / Tier 1 + ALLL (%) Source: SNL Financial Note: Bank level data used Note: Income metrics are not adjusted for S-Corp status 31

32 EQBK Financial Highlights (Dollars in Thousands) At or for the year ended, '12 - '16 At or for the quarter ended, 12/31/13 12/31/14 12/31/15 12/31/16 CAGR 12/31/16 03/31/17 06/30/17 09/30/17 Balance Sheet Total Assets $ 1,139,897 $ 1,174,515 $ 1,585,727 $ 2,192, % $ 2,192,192 $ 2,399,256 $ 2,408,624 $ 2,405,426 Total Net Loans 655, , ,353 1,382, % 1,382,003 1,515,549 1,525,291 1,537,075 Deposits 947, ,177 1,215,914 1,630, % 1,630,451 1,821,090 1,819,677 1,868,493 Total Common Equity 107, , , , , , , ,835 Total Equity 139, , , , % 257, , , ,835 Balance Sheet Ratios Loans / Deposits (%) 69.7 % 74.0 % 79.0 % 84.9 % 84.9 % 83.4 % 84.0 % 82.5 % TCE / TA (%) Leverage Ratio (%) Tier 1 Common Ratio (%) Tier 1 Ratio (%) Total Risk Based Capital Ratio (%) Income Statement Net Interest Income $ 41,235 $ 41,361 $ 46,262 $ 52,597 $ 15,663 $ 19,893 $ 21,199 $ 20,321 Loan Loss Provision 2,583 1,200 3,047 2, , Net income 7,873 8,987 10,300 9, % 417 4,864 6,354 5,157 Core income 7,993 8,595 10,643 12, % 3,804 5,598 6,548 5,873 Profitability Ratios Core ROAA (%) 0.68 % 0.74 % 0.77 % 0.74 % 0.81 % 1.00 % 1.10 % 0.98 % Core ROAE (%) Net Interest Margin (%) Efficiency Ratio (%) Asset Quality NPAs / Loans + OREO (%) 3.04 % 2.12 % 1.44 % 2.24 % 2.24 % 2.38 % 2.43 % 2.76 % NCOs / Avg Loans (%) NPAs + 90+PD / Loans + OREO (%) Reserves / Loans (%) Texas Ratio (Common) (%) Per Share Information Core EPS ($) $ 0.94 $ 1.24 $ 1.59 $ 1.46 $ 0.36 $ 0.46 $ 0.53 $ 0.47 Stock Price ($) n/a n/a Market Capitalization ($) n/a n/a Price / TBV (%) n/a n/a Price / Next Year EPS n/a n/a 15.0 x 17.0 x 17.0 x 14.4 x 13.5 x 14.1 x Source: SNL Financial and FactSet` 32

33 EQBK s Professional Board Gary Allerheiligen Accounting CPA Advisor, Retired Partner, Grant Thornton (KS) Jim Berglund Banking Bank Advisor, Retired President / CEO Sunflower Bank (KS) Dan Bowers Michael Downing Brad Elliott Greg Kossover Jerry Maland Roger Buller Greg Gaeddert Shawn Penner Investment Professionals Former Secretary & Vice Chairman of Community First Bancshares, Inc. Former Ellis State Bank President (KS) Chairman / CEO of Equity Bancshares, Inc. (KS) CFO Equity Bancshares, Former CEO, Value Place, LLC (KS) Former Chairman, President & CEO of Community First Bancshares, Inc. Investment Advisory SVP / Regional Manager, Benjamin F. Edwards & Co. (KS) Managing Partner, B12 Capital Partners, LLC (KS) Owner, Shamrock Advisors, Inc. (KS) Jeff Bloomer Power & Energy President and COO, Sunrise Oilfield Supply Company (KS) P. John Eck Insurance Owner, AGV Corp., Eck Agency, Inc. (KS) Randee Koger Law Attorney / Partner, Wise & Reber, L.C. (KS) Harvey Sorensen Attorney / Partner, Foulston Siefken LLP (KS) 33

34 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 25 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 34

35 Strategic Planning Team Team Member Role Years with EQBK Years in Banking Patrick Harbert EVP, Community Markets, Sales & Service Julie Huber EVP, Strategic Initiatives Jennifer Johnson EVP, Chief Operations Officer 5 31 Rolando Mayans EVP, Chief Risk Officer 9 24 Beth Money EVP, Retail Banking Director 8 27 Scott Smits EVP, Chief Credit Officer 1 30 John Blakeney EVP, Chief Information Officer 1 25 Patrick Salmans SVP, Human Resources Director 5 21 Mark Parman SVP, President - Kansas City 4 36 John Hanley SVP, Director of Marketing & Investor Relations 4 13 Jeremy Machain SVP, President Wichita 8 14 Ann Main SVP, President Ozark Mountain (Arkansas) 1 37 Michael Bezanson SVP, President - Tulsa 1 30 EQBK Team has 396+ Years of Combined Banking Experience 35

36 Footprint & Targets 36