[Executive Summary & Second Quarter Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Second%20Quarter%20Highlights) Equity Bancshares, Inc. reported strong Q2 2025 results, marked by increased net income, expanded net interest margin, and the successful acquisition of NBC Oklahoma [Q2 2025 Performance Overview](index=1&type=section&id=Q2%202025%20Performance%20Overview) Equity Bancshares, Inc. reported net income of $15.3 million or $0.86 earnings per diluted share for Q2 2025, with adjusted earnings of $0.94 per diluted share, alongside margin expansion and a key acquisition Net Income and Diluted EPS (GAAP vs. Adjusted) | Metric | Q2 2025 (GAAP) | Q2 2025 (Adjusted) | | :-------------------------------- | :------------- | :----------------- | | Net Income | $15.3 million | $16.7 million | | Diluted EPS | $0.86 | $0.94 | - Net interest margin for Q2 2025 was **4.17%**, an expansion of **9 basis points** compared to 4.08% (excluding non-recurring items from the previous quarter)[2](index=2&type=chunk) - The Company completed the acquisition of NBC Corp. of Oklahoma on July 2, 2025, adding approximately **$695.1 million in loans**, **$800.5 million in deposits**, and new markets including Oklahoma City[2](index=2&type=chunk) Key Performance Metrics | Metric | Q2 2025 | Change QoQ | | :-------------------------------- | :------ | :--------- | | Book value per share expansion | $1.04 | 3.0% | | Tangible book value per share improvement | $1.10 | 3.5% | | Tangible common equity to tangible assets | 10.6% | +50 bps | | Loan balances (period end) | $3.60 billion | - | | Average loan balances (quarter) | $3.63 billion | +$55.8 million (6.2% annualized) | | Deposit balances (excluding brokered) | - | -$43.4 million | | Brokered deposits decline | $138.0 million | -$127.1 million | | Net charge-offs (annualized) | 0.06% | - | | Dividend on common shares | $0.15 | - | | Shares repurchased | 7,500 | - | [Financial Results for the Quarter Ended June 30, 2025](index=2&type=section&id=Financial%20Results%20for%20the%20Quarter%20Ended%20June%2030%2C%202025) This section details the company's Q2 2025 financial performance, including net income, net interest income, credit loss provisions, non-interest income, and expenses [Net Income](index=2&type=section&id=Net%20Income) Net income allocable to common stockholders for Q2 2025 was $15.3 million, a slight increase from $15.0 million in the prior quarter, with adjusted net income reaching $16.7 million Net Income and Diluted EPS | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Net income allocable to common stockholders | $15.3 million | $15.0 million | +$0.3 million | | Diluted EPS | $0.86 | $0.85 | +$0.01 | | Adjusted Net Income (excluding $1.7 million expenses) | $16.7 million | - | - | | Adjusted Diluted EPS (excluding $1.7 million expenses) | $0.94 | - | - | [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income was $49.8 million for Q2 2025, a decrease from $50.3 million in the prior quarter, but an adjusted increase of $1.8 million, driven by higher loan volume and coupon rates, expanding the net interest margin by 10 basis points to 4.17% Net Interest Income and Margin | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Net Interest Income (GAAP) | $49.8 million | $50.3 million | -$0.5 million | | Adjusted Net Interest Income (excluding non-recurring items) | - | - | +$1.8 million | | Net Interest Margin (GAAP) | 4.17% | 4.27% | -10 bps | | Adjusted Net Interest Margin (excluding non-recurring items) | 4.17% | 4.07% | +10 bps | | Coupon yield on interest earning assets | +7 bps | - | - | | Cost of interest bearing liabilities | -1 bps | - | - | [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses significantly decreased to $19 thousand in Q2 2025, primarily due to declining loan balances and a stable economic outlook, while net charge-offs increased to $573 thousand Provision for Credit Losses and Asset Quality | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Provision for Credit Losses | $19 thousand | $2.7 million | -$2.681 million | | Net Charge-offs | $573 thousand | $165 thousand | +$408 thousand | | Allowance for credit losses to gross loans held for investment | 1.26% | 1.26% | Unchanged | - The lower provision was driven by a decline in ending loan balances during the period, offset by charge-offs and the lack of meaningful change in the economic outlook[6](index=6&type=chunk) - The Company continues to estimate the allowance for credit loss with assumptions that anticipate slower prepayment rates and continued market disruption caused by trade policy, elevated inflation, supply chain issues and the impact of monetary policy on consumers and businesses[7](index=7&type=chunk) [Non-Interest Income](index=2&type=section&id=Non-Interest%20Income) Total non-interest income for Q2 2025 was $8.6 million, down from $10.3 million in the prior quarter, primarily due to a non-recurring death benefit in Q1, but showing an adjusted increase of $459 thousand driven by improving service revenues Non-Interest Income | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Total Non-Interest Income | $8.6 million | $10.3 million | -$1.7 million | | Non-recurring death benefit (Q1 2025) | - | $2.2 million | - | | Adjusted Non-Interest Income (excluding non-recurring) | - | - | +$459 thousand | | Drivers of increase (adjusted) | Improving trends in service revenues (treasury, debit/credit card, mortgage, trust/wealth management) | - | - | [Non-Interest Expense](index=2&type=section&id=Non-Interest%20Expense) Total non-interest expense increased to $40.0 million in Q2 2025 from $39.1 million in the prior quarter, driven by merger and debt extinguishment costs, but decreased by $699 thousand (1.8%) when adjusted for these items Non-Interest Expense | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Total Non-Interest Expense | $40.0 million | $39.1 million | +$0.9 million | | Merger expenses | $355 thousand | $66 thousand | +$289 thousand | | Loss on debt extinguishment | $1.361 million | $0 | +$1.361 million | | Adjusted Non-Interest Expense (excluding merger/debt extinguishment) | - | - | -$699 thousand (1.8%) | [Income Tax Expense](index=2&type=section&id=Income%20Tax%20Expense) The effective tax rate for Q2 2025 decreased to 16.9% from 20.2% in Q1 2025, primarily due to interest income from federal carryback claims and tax benefits from a new tax credit structure Effective Tax Rate | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Effective Tax Rate | 16.9% | 20.2% | -3.3 percentage points | - The decrease in the tax rate was due to interest income from federal carryback claims and tax benefits from a new tax credit structure, partially offset by prior quarter non-recurring benefits related to stock compensation[10](index=10&type=chunk) [Balance Sheet and Asset Quality Overview](index=3&type=section&id=Balance%20Sheet%20and%20Asset%20Quality%20Overview) This overview presents the company's balance sheet, highlighting changes in loans, total assets, funding structure, and asset quality metrics for Q2 2025 [Loans, Total Assets and Funding](index=3&type=section&id=Loans%2C%20Total%20Assets%20and%20Funding) Loans held for investment decreased by $30.9 million to $3.6 billion, total assets decreased by $72 million to $5.4 billion, and total deposits declined by $170.4 million to $4.2 billion, with Federal Home Loan Bank borrowings increasing to offset wholesale funding declines Balance Sheet Highlights | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Loans held for investment | $3.6 billion | $3.63 billion | -$30.9 million | | Total assets | $5.4 billion | $5.446 billion | -$72 million | | Total deposits (including brokered) | $4.2 billion | $4.405 billion | -$170.4 million | | Non-interest-bearing deposits as % of total | 21.6% | - | - | | Federal Home Loan Bank borrowings | $383.7 million | $236.7 million | +$146.9 million | | Wholesale balances | - | - | -$127.1 million | [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality metrics deteriorated in Q2 2025, with nonperforming assets increasing to $45.7 million (0.9% of total assets) and non-accrual loans rising to $42.6 million, while total classified assets also increased to $71.0 million (11.4% of regulatory capital) Asset Quality Metrics | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Nonperforming assets | $45.7 million | $27.9 million | +$17.8 million | | Nonperforming assets to total assets | 0.9% | 0.5% | +0.4 percentage points | | Non-accrual loans | $42.6 million | $24.2 million | +$18.4 million | | Total classified assets | $71.0 million | $63.9 million | +$7.1 million | | Total classified assets to regulatory capital | 11.4% | 10.2% | +1.2 percentage points | [Capital](index=3&type=section&id=Capital) This section details the company's capital position and key regulatory ratios, reflecting an increase in book capital and improved tangible book value per share [Capital Position and Ratios](index=3&type=section&id=Capital%20Position%20and%20Ratios) Book capital increased by $18.3 million to $635.6 million, driven by earnings and an improved bond portfolio, leading to a tangible book value per share of $32.17 and strong capital ratios, including a Common Equity Tier 1 Capital Ratio of 15.0% Capital Ratios | Metric | Q2 2025 | Q1 2025 | Change QoQ | | :-------------------------------- | :------ | :------ | :--------- | | Book capital | $635.6 million | $617.3 million | +$18.3 million | | Tangible book value | $563.8 million | - | - | | Tangible book value per share | $32.17 | $31.07 | +$1.10 | | Common equity tier 1 capital to risk-weighted assets | 15.0% | 14.7% | +0.3 percentage points | | Total capital to risk-weighted assets | 16.8% | 18.3% | -1.5 percentage points | | Total leverage ratio | 12.1% | 11.8% | +0.3 percentage points | - The increase in capital is primarily due to earnings and an improvement in the unrealized loss position on the bond portfolio as accumulated other comprehensive income improved **$15.3 million**[14](index=14&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures to provide additional insights into the company's operating results and financial condition [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Management uses non-GAAP financial measures like efficiency ratio, core income, and tangible common equity to offer additional insights into operating results, financial condition, and performance trends, aiding in peer comparisons - Non-GAAP financial measures are used to provide additional perspectives on operating results, financial condition and performance trends, while facilitating comparisons with the performance of other financial institutions[17](index=17&type=chunk) - Key non-GAAP measures include efficiency ratio, core income, core return on average assets, core return on average equity, core earnings per share, tangible common equity, and return on average tangible common equity[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk) - Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company's GAAP financial information[17](index=17&type=chunk) [Reconciliation Reference](index=4&type=section&id=Reconciliation%20Reference) A comprehensive reconciliation of GAAP to non-GAAP financial measures and other adjusted performance ratios is provided in Table 6 of the press release tables for transparency - A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included in Table 6 in the following press release tables[22](index=22&type=chunk) [Corporate Information](index=4&type=section&id=Corporate%20Information) This section provides corporate details, including information on the Q2 earnings call, company overview, forward-looking statements, and investor contacts [Conference Call and Webcast](index=4&type=section&id=Conference%20Call%20and%20Webcast) Equity's Chairman and CEO, Brad Elliott, and CFO, Chris Navratil, will host a conference call and webcast on Tuesday, July 15, 2025, at 10 a.m. eastern time to discuss the second quarter results, with a replay available until July 22, 2025 - A conference call and webcast to discuss second quarter results will be held on Tuesday, July 15, 2025, at 10 a.m. eastern time[23](index=23&type=chunk) - Participants can pre-register using the provided link to eliminate wait times. A replay of the call and webcast will be available until July 22, 2025, at investor.equitybank.com[24](index=24&type=chunk) [About Equity Bancshares, Inc.](index=5&type=section&id=About%20Equity%20Bancshares%2C%20Inc.) Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full suite of financial solutions including commercial loans, consumer banking, mortgage loans, trust and wealth management, and treasury management services, with its common stock traded on the NYSE under 'EQBK' - Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions[25](index=25&type=chunk) - Services include commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services[25](index=25&type=chunk) - Equity's common stock is traded on the New York Stock Exchange under the symbol '**EQBK**'[25](index=25&type=chunk) [Special Note Concerning Forward-Looking Statements](index=5&type=section&id=Special%20Note%20Concerning%20Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks, assumptions, and uncertainties, including competition, economic and monetary policy changes, loan demand fluctuations, and NBC acquisition challenges, which could cause actual results to differ materially from expectations - The press release contains forward-looking statements reflecting current views on future events and financial performance, identified by words like 'expect,' 'anticipate,' 'believe,' etc[26](index=26&type=chunk) - These statements are not guarantees of future performance and are subject to risks, assumptions, and uncertainties, including competition, changes in trade/monetary/fiscal policies, demand for loans, value fluctuations, and integration challenges from the NBC acquisition[26](index=26&type=chunk) - Readers should not place undue reliance on forward-looking statements, and the Company does not undertake any obligation to publicly update or review them, except as required by law[27](index=27&type=chunk)[28](index=28&type=chunk) [Investor and Media Contacts](index=7&type=section&id=Investor%20and%20Media%20Contacts) Contact information is provided for investor relations, Brian J. Katzfey, and media relations, Russell Colburn, for any inquiries regarding Equity Bancshares, Inc - Investor Contact: Brian J. Katzfey, VP, Director of Corporate Development and Investor Relations, (316) 858-3128, bkatzfey@equitybank.com[29](index=29&type=chunk) - Media Contact: Russell Colburn, Public Relations and Communication Manager, (913) 583-8011, rcolburn@equitybank.com[29](index=29&type=chunk) [Unaudited Financial Tables](index=8&type=section&id=Unaudited%20Financial%20Tables) This section presents unaudited financial tables, including consolidated statements of income, balance sheets, selected highlights, and net interest income analyses [TABLE 1. Consolidated Statements of Income](index=9&type=section&id=TABLE%201.%20Consolidated%20Statements%20of%20Income) Table 1 presents the unaudited consolidated statements of income for the three and six months ended June 30, 2025, and 2024, detailing interest and dividend income, interest expense, net interest income, provision for credit losses, non-interest income, non-interest expense, and net income | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total interest and dividend income | $74,187 | $75,132 | $148,871 | $146,899 | | Total interest expense | $24,385 | $28,656 | $48,777 | $56,241 | | Net interest income | $49,802 | $46,476 | $100,094 | $90,658 | | Provision for credit losses | $19 | $265 | $2,741 | $1,265 | | Total non-interest income | $8,589 | $8,958 | $18,919 | $20,689 | | Total non-interest expense | $40,001 | $38,871 | $79,051 | $76,023 | | Net income allocable to common stockholders | $15,264 | $11,716 | $30,305 | $25,784 | | Basic earnings per share | $0.87 | $0.77 | $1.73 | $1.68 | | Diluted earnings per share | $0.86 | $0.76 | $1.72 | $1.67 | [TABLE 2. Quarterly Consolidated Statements of Income](index=11&type=section&id=TABLE%202.%20Quarterly%20Consolidated%20Statements%20of%20Income) Table 2 provides a quarterly breakdown of the consolidated statements of income for the past five quarters, from June 30, 2024, to June 30, 2025, enabling a detailed quarter-over-quarter trend analysis of key income statement components | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total interest and dividend income | $74,187 | $74,684 | $74,979 | $74,965 | $75,132 | | Total interest expense | $24,385 | $24,392 | $25,506 | $28,934 | $28,656 | | Net interest income | $49,802 | $50,292 | $49,473 | $46,031 | $46,476 | | Provision for credit losses | $19 | $2,722 | $98 | $1,183 | $265 | | Total non-interest income | $8,589 | $10,330 | $8,816 | $9,317 | $8,958 | | Total non-interest expense | $40,001 | $39,050 | $37,806 | $30,328 | $38,871 | | Net income allocable to common stockholders | $15,264 | $15,041 | $16,986 | $19,851 | $11,716 | | Basic earnings per share | $0.87 | $0.86 | $1.06 | $1.30 | $0.77 | | Diluted earnings per share | $0.86 | $0.85 | $1.04 | $1.28 | $0.76 | [TABLE 3. Consolidated Balance Sheets](index=13&type=section&id=TABLE%203.%20Consolidated%20Balance%20Sheets) Table 3 presents the unaudited consolidated balance sheets for the past five quarters, from June 30, 2024, to June 30, 2025, providing a detailed view of assets, liabilities, and stockholders' equity at each period end | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total assets | $5,373,837 | $5,446,100 | $5,332,047 | $5,355,233 | $5,245,517 | | Loans, net of allowance for credit losses | $3,555,458 | $3,585,804 | $3,457,549 | $3,557,435 | $3,410,920 | | Total deposits | $4,234,918 | $4,405,364 | $4,374,789 | $4,362,944 | $4,341,437 | | Total liabilities | $4,738,201 | $4,828,776 | $4,739,129 | $4,851,195 | $4,784,082 | | Total stockholders' equity | $635,636 | $617,324 | $592,918 | $504,038 | $461,435 | | Allowance for credit losses | $45,270 | $45,824 | $43,267 | $43,490 | $43,487 | [TABLE 4. Selected Financial Highlights](index=14&type=section&id=TABLE%204.%20Selected%20Financial%20Highlights) Table 4 provides selected financial highlights for the past five quarters, including a breakdown of loans held for investment by type, key asset quality ratios, average balance sheet data, and various performance and capital ratios (both GAAP and non-GAAP) | Metric | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total loans held-for-investment | $3,600,728 | $3,631,628 | $3,500,816 | $3,600,925 | $3,454,407 | | Allowance for credit losses on loans to total loans | 1.26% | 1.26% | 1.24% | 1.21% | 1.26% | | Nonperforming assets to total assets | 0.85% | 0.51% | 0.65% | 0.60% | 0.52% | | Return on average assets (ROAA) annualized | 1.18% | 1.17% | 1.31% | 1.52% | 0.91% | | Net interest margin annualized | 4.17% | 4.27% | 4.17% | 3.87% | 3.94% | | Efficiency ratio | 63.62% | 62.43% | 63.02% | 52.59% | 63.77% | | Common Equity Tier 1 Capital Ratio | 15.07% | 14.70% | 14.51% | 11.37% | 11.12% | | Tangible common equity to tangible assets | 10.63% | 10.13% | 9.95% | 8.21% | 7.55% | | Tangible book value per common share | $32.17 | $31.07 | $30.07 | $28.38 | $25.70 | [TABLE 5. Year-To-Date Net Interest Income Analysis](index=17&type=section&id=TABLE%205.%20Year-To-Date%20Net%20Interest%20Income%20Analysis) Table 5 provides a detailed year-to-date analysis of net interest income for the six months ended June 30, 2025, and 2024, breaking down average outstanding balances, interest income/expense, and average yields/rates for various interest-earning assets and interest-bearing liabilities | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Total loans (average outstanding balance) | $3,603,259 | $3,456,013 | | Total loans (interest income) | $125,865 | $120,347 | | Total loans (average yield/rate) | 7.04% | 7.00% | | Total interest-earning assets (average outstanding balance) | $4,781,872 | $4,743,955 | | Total interest-earning assets (interest income) | $148,871 | $146,899 | | Total interest-earning assets (average yield/rate) | 6.28% | 6.23% | | Total interest-bearing liabilities (average outstanding balance) | $3,627,242 | $3,718,009 | | Total interest-bearing liabilities (interest expense) | $48,777 | $56,241 | | Total interest-bearing liabilities (average yield/rate) | 2.71% | 3.04% | | Net interest income | $100,094 | $90,658 | | Interest rate spread | 3.57% | 3.19% | | Net interest margin | 4.22% | 3.84% | [TABLE 6. Quarter-To-Date Net Interest Income Analysis](index=18&type=section&id=TABLE%206.%20Quarter-To-Date%20Net%20Interest%20Income%20Analysis) Table 6 provides a detailed quarter-to-date analysis of net interest income for the three months ended June 30, 2025, and 2024, presenting average outstanding balances, interest income/expense, and average yields/rates for various interest-earning assets and interest-bearing liabilities | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | Total loans (average outstanding balance) | $3,630,981 | $3,459,476 | | Total loans (interest income) | $62,868 | $61,518 | | Total loans (average yield/rate) | 6.94% | 7.15% | | Total interest-earning assets (average outstanding balance) | $4,791,664 | $4,745,713 | | Total interest-earning assets (interest income) | $74,187 | $75,132 | | Total interest-earning assets (average yield/rate) | 6.21% | 6.37% | | Total interest-bearing liabilities (average outstanding balance) | $3,615,346 | $3,725,943 | | Total interest-bearing liabilities (interest expense) | $24,385 | $28,656 | | Total interest-bearing liabilities (average yield/rate) | 2.71% | 3.09% | | Net interest income | $49,802 | $46,476 | | Interest rate spread | 3.50% | 3.28% | | Net interest margin | 4.17% | 3.94% | [TABLE 7. Quarter-Over-Quarter Net Interest Income Analysis](index=19&type=section&id=TABLE%207.%20Quarter-Over-Quarter%20Net%20Interest%20Income%20Analysis) Table 7 provides a quarter-over-quarter analysis of net interest income for the three months ended June 30, 2025, compared to March 31, 2025, detailing average outstanding balances, interest income/expense, and average yields/rates for interest-earning assets and interest-bearing liabilities, highlighting recent trends | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended March 31, 2025 | | :-------------------------------- | :------------------------------- | :-------------------------------- | | Total loans (average outstanding balance) | $3,630,981 | $3,575,230 | | Total loans (interest income) | $62,868 | $62,997 | | Total loans (average yield/rate) | 6.94% | 7.15% | | Total interest-earning assets (average outstanding balance) | $4,791,664 | $4,771,972 | | Total interest-earning assets (interest income) | $74,187 | $74,684 | | Total interest-earning assets (average yield/rate) | 6.21% | 6.35% | | Total interest-bearing liabilities (average outstanding balance) | $3,615,346 | $3,639,268 | | Total interest-bearing liabilities (interest expense) | $24,385 | $24,392 | | Total interest-bearing liabilities (average yield/rate) | 2.71% | 2.72% | | Net interest income | $49,802 | $50,292 | | Interest rate spread | 3.50% | 3.63% | | Net interest margin | 4.17% | 4.27% | [TABLE 8. Non-GAAP Financial Measures](index=20&type=section&id=TABLE%208.%20Non-GAAP%20Financial%20Measures) Table 8 provides a reconciliation of GAAP financial measures to non-GAAP measures for the past five quarters, including calculations for tangible common equity, core net income, and various adjusted performance ratios, offering a clearer view of the company's underlying financial performance | Metric (in thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Total stockholders' equity | $635,636 | $617,324 | $592,918 | $504,038 | $461,435 | | Tangible common equity | $563,775 | $544,373 | $523,891 | $433,940 | $390,694 | | Tangible book value per common share | $32.17 | $31.07 | $30.07 | $28.38 | $25.70 | | Tangible common equity to tangible assets | 10.63% | 10.13% | 9.95% | 8.21% | 7.55% | | Net income allocable to common stockholders | $15,264 | $15,041 | $16,986 | $19,851 | $11,716 | | Core net income allocable to common stockholders | $17,515 | $15,987 | $17,834 | $20,427 | $16,217 | | Core earnings per diluted share | $0.99 | $0.90 | $1.10 | $1.32 | $1.05 | | Core return on average assets | 1.35% | 1.24% | 1.37% | 1.56% | 1.25% | | Core return on average equity | 11.18% | 10.69% | 13.29% | 16.73% | 14.25% |

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Equity Bancshares (EQBK) despite an increase in revenues when it reports its results for the quarter ended June 2025 [1] Earnings Expectations - The consensus EPS estimate for the upcoming report is $0.90 per share, reflecting a year-over-year decrease of 9.1% [3] - Revenues are projected to be $58.6 million, which is an increase of 5.7% compared to the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4] - A positive Earnings ESP of +3.91% suggests that analysts have recently become more optimistic about the company's earnings prospects [12] Earnings Surprise History - In the last reported quarter, Equity Bancshares exceeded the expected earnings of $0.82 per share by delivering $0.90, resulting in a surprise of +9.76% [13] - The company has beaten consensus EPS estimates in all of the last four quarters [14] Predictive Indicators - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - The current Zacks Rank for Equity Bancshares is 3, indicating a neutral outlook [12] Conclusion - Equity Bancshares is viewed as a compelling candidate for an earnings beat, but investors should consider other factors that may influence stock performance [17]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-37624 EQUITY BANCSHARES, INC. (Exact name of registrant as specified in its charter) Kansas 72-1532188 (State or other ju ...

Financial Data and Key Metrics Changes - The company reported net income of $15 million, or $0.85 per diluted share, with tangible common equity earnings of $16 million, or $0.90 per diluted share [13] - Net interest income increased from $49.5 million to $50.3 million, driving net interest margin to 4.27% from 4.17% [14] - The tangible common equity (TCE) ratio improved to 10.13%, up 36% year-over-year, and tangible book value per share increased to $31.07, up 24% [11] Business Line Data and Key Metrics Changes - Loans increased by $131 million, reflecting an annualized growth rate of 15.5% [9] - Organic originations totaled $197 million, up 64% compared to the previous quarter, with total production at $254 million [30] - Non-interest income for the quarter was $10.3 million, up $1.5 million from the previous quarter, primarily due to a death benefit realized on bank-owned life insurance [15] Market Data and Key Metrics Changes - Non-accrual loans decreased by 10.3% to $24.2 million, while non-performing assets declined by 19.6% to $27.9 million [20] - Delinquency over 30 days increased to $18.2 million but remained low at approximately 50 basis points of total loans [22] - The company anticipates a positive credit outlook for 2025, with problem trends below historic norms [24] Company Strategy and Development Direction - The company announced a merger with NBC Corp, which is expected to add approximately $900 million to assets and expand its market presence in Oklahoma [6][7] - The management emphasized a dual strategy of organic growth and strategic mergers and acquisitions, with active conversations for potential deals [10][37] - The company aims to enhance its product offerings and customer experience through the integration of NBC's capabilities [72][74] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining margin and earnings growth despite economic uncertainties related to tariffs [43] - The company is focused on managing expenses and improving efficiency to offset potential revenue headwinds [92] - The management team is prepared for growth opportunities and remains disciplined in assessing M&A opportunities [38][37] Other Important Information - The company closed the quarter with a TCE ratio of 10.13% and a tangible book value per share of $31.07, indicating a strong balance sheet [11] - The company has retained approximately $67 million in capital from a common stock raise in December, ready for strategic growth [9] Q&A Session Summary Question: Impact of tariffs on commercial customers - Management noted that customers have provisions in contracts to pass on costs, and there is currently no indication of a slowdown [42] Question: Update on sales initiatives and loan growth - Management indicated they are in the early stages of sales initiatives, with significant contributions from Tulsa and Kansas City [45][46] Question: Expectations for loan purchases - Management clarified that recent loan purchases were a one-time deal and not part of a consistent strategy [53] Question: Community market activity and growth - Management sees significant opportunities in community markets and is focused on building relationships with local businesses [55] Question: M&A confidence amidst market volatility - Management believes there are still opportunities for deals, driven by age of ownership and management in potential target companies [59] Question: Expected deal accretion from NBC - Management expects about 50 cents in accretion for year two post-merger, with specific figures to be provided later [62] Question: Deposit market competition and cost of funds - Management noted a more rational competition in deposit markets and plans to mirror Fed moves regarding deposit costs [66] Question: Margin expectations with potential Fed rate cuts - Management indicated that while they can defend margins, there may be modest upside potential if rates are cut [90]

Core Insights - Equity Bancshares (EQBK) reported revenue of $60.62 million for Q1 2025, an 8.4% year-over-year increase, with an EPS of $0.90 compared to $1.03 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $55.94 million by 8.38%, while the EPS surpassed the consensus estimate of $0.82 by 9.76% [1] Financial Performance Metrics - Average Outstanding Balance of total interest-earning assets was $4.77 billion, slightly below the estimated $4.80 billion [4] - Net Interest Margin stood at 4.3%, exceeding the average estimate of 4% [4] - Efficiency ratio improved to 62.4%, better than the estimated 66.5% [4] - Total Non-Interest Income was reported at $10.33 million, surpassing the estimate of $8.35 million [4] - Net Interest Income reached $50.29 million, compared to the average estimate of $47.59 million [4] Stock Performance - Shares of Equity Bancshares have declined by 11% over the past month, while the Zacks S&P 500 composite decreased by 3.9% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Financial Performance - Net income for the quarter ended March 31, 2025, was $15.0 million, or $0.85 per diluted share, compared to $17.0 million, or $1.04 per diluted share in the prior quarter[3]. - Non-interest income for the quarter was $10.3 million, an increase from $8.8 million in the previous quarter, driven by a $1.7 million improvement in Bank Owned Life Insurance[9]. - Net income for the quarter was $15,041,000, down from $16,986,000 in the previous quarter, representing a decrease of about 11.5%[33]. - Adjusted net income allocable to common stockholders was $15,945 thousand for the latest quarter, down from $17,832 thousand in the previous quarter, a decrease of 10.5%[42]. - Core earnings per diluted share decreased to $0.90 for the quarter ended March 31, 2025, down from $1.10 in the previous quarter[36]. - Diluted earnings per share decreased to $0.85 from $1.04 in the previous quarter, a decline of 18.3%[42]. Interest Income and Margin - Net interest margin for the quarter was 4.27%, positively impacted by non-recurring nonaccrual reversals of approximately $2.3 million; excluding these items, the margin was 4.08%[4]. - Net interest income after provision for credit losses was $47,570,000, compared to $49,375,000 in the previous quarter, reflecting a decrease of approximately 3.6%[33]. - For the three months ended March 31, 2025, net interest income was $50,292,000, an increase from $44,182,000 for the same period in 2024, representing a growth of 7.5%[38]. - The net interest margin increased to 4.27% for the three months ended March 31, 2025, up from 3.75% in the same period last year[38]. - The interest rate spread improved to 3.63% for the three months ended March 31, 2025, compared to 3.10% for the same period in 2024[38]. Loan and Deposit Growth - Loan balances increased to $3.63 billion, reflecting linked quarter growth of $130.8 million, or 15.2% annualized[4]. - Total deposits were $4.4 billion, consistent with the prior quarter, with a decrease of $109.4 million in deposits excluding brokered balances due to seasonal outflows[4]. - Total loans held-for-investment increased to $3,631,628 thousand as of March 31, 2025, up from $3,500,816 thousand at December 31, 2024, representing a growth of 3.75%[36]. - Total deposits reached $4,405,364 thousand, up from $4,374,789 thousand, reflecting a growth of 0.7%[35]. - Time deposits increased to $841,463 thousand from $736,527 thousand, reflecting a growth of 14.2%[35]. Expenses and Provisions - Total non-interest expense was $39.1 million, up from $37.8 million in the previous quarter, primarily due to payroll dynamics and higher incentive accruals[10]. - The provision for credit losses was $2.7 million, compared to $98 thousand in the previous quarter, reflecting loan growth and economic uncertainty[7]. - Provision for credit losses was $2,722,000, compared to a reversal of $98,000 in the previous quarter, indicating a significant change in credit loss expectations[33]. Capital and Equity - Tangible common equity to tangible assets closed the period at 10.1%[4]. - The Company's ratio of common equity tier 1 capital to risk-weighted assets was 14.7% at March 31, 2025, up from 14.5% at the end of the previous quarter[17]. - Stockholders' equity increased to $617,324 thousand from $592,918 thousand, indicating a rise of 4.2%[35]. - Common Equity Tier 1 Capital Ratio improved to 14.70% as of March 31, 2025, compared to 14.51% at December 31, 2024[37]. - Total stockholders' equity to total assets ratio was 11.34% as of March 31, 2025, compared to 11.12% at December 31, 2024[37]. Mergers and Acquisitions - The Company announced a merger with NBC Corp. of Oklahoma, which has approximately $682 million in loans and $816 million in deposits, expected to close in Q3 2025[4]. - The company is currently facing uncertainties related to the proposed transaction with NBC Corp. of Oklahoma, which may impact future performance[29].

Core Insights - Analysts forecast that Equity Bancshares (EQBK) will report quarterly earnings of $0.82 per share, reflecting a year-over-year decline of 20.4% [1] - Expected revenues are projected to be $55.94 million, showing no change compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 3.9% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics - Analysts estimate that the 'Average Outstanding Balance - Total interest-earning assets' will reach $4.80 billion, up from $4.74 billion in the same quarter last year [5] - The 'Net Interest Margin' is expected to be 4.0%, compared to 3.8% a year ago [5] - The 'Efficiency ratio' is forecasted to be 66.5%, slightly higher than the previous year's 65.2% [5] - 'Total Non-Interest Income' is estimated at $8.35 million, down from $11.73 million year-over-year [6] - 'Net Interest Income' is projected to be $47.59 million, an increase from $44.18 million in the prior year [6] Stock Performance - Equity Bancshares shares have decreased by 6.1% in the past month, compared to a 5.3% decline in the Zacks S&P 500 composite [7] - With a Zacks Rank 2 (Buy), EQBK is expected to outperform the overall market in the near term [7]

Core Viewpoint - Equity Bancshares (EQBK) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended March 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for Equity Bancshares is an earnings per share (EPS) of $0.82, reflecting a year-over-year decrease of 20.4%, while revenues are projected to be $55.94 million, a slight increase of 0.1% from the previous year [3]. - The earnings report is expected to be released on April 15, and the stock may react positively if the results exceed expectations, whereas a miss could lead to a decline [2]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 3.85%, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][10]. - The Most Accurate Estimate for Equity Bancshares is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.44%, which complicates the prediction of an earnings beat [10][11]. Earnings Surprise History - In the last reported quarter, Equity Bancshares had an EPS expectation of $0.92 but delivered $1.10, resulting in a positive surprise of 19.57% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Industry Comparison - FB Financial (FBK), another player in the Zacks Banks - Northeast industry, is expected to report an EPS of $0.85, unchanged from the previous year, with revenues projected to increase by 23.5% to $132.69 million [17]. - FB Financial's consensus EPS estimate has remained stable, but a higher Most Accurate Estimate has led to an Earnings ESP of 0.78%, suggesting a likely earnings beat, supported by a Zacks Rank of 2 (Buy) [18].

Loan Portfolio - As of December 31, 2024, total loans amounted to $3.46 billion, representing 64.8% of total assets[30] - Commercial real estate loans were $1.83 billion, constituting 52.3% of total loans, while commercial and industrial loans were $658.9 million (18.8%) and residential real estate loans were $566.8 million (16.2%) as of December 31, 2024[30] - The aggregate amount of loans to the ten largest borrowers was approximately $314.6 million, or 9.0% of total loans[32] - The bank's legal lending limit on loans to a single borrower was $151.9 million, with an in-house limit of $25.0 million[37] - The company offers a variety of loans, including commercial, industrial, residential, and agricultural loans, tailored to meet customer needs[39] - Agricultural real estate loans generally amortize over periods not exceeding 20 years and have a loan-to-value ratio under 80%[50] - Agricultural operating loans are typically originated for terms of up to 7 years, with fixed rates for loans secured by breeding livestock and/or farm equipment for up to 5 years[51] - Consumer loans are underwritten based on the borrower's income, current debt level, past credit history, and collateral value, with greater risk compared to residential real estate loans[52] Risk Management - The company emphasizes a disciplined approach to loan underwriting, with centralized credit policies and ongoing risk monitoring[33] - The company maintains strong risk management practices, overseen by experienced audit and risk committees, to ensure sound policies and procedures[30] - The effectiveness of the company's enterprise risk management framework is critical to avoid unexpected losses[201] - The company is exposed to risks from potential claims and litigation related to fiduciary responsibilities, which could result in significant financial liability[188] - Operational risks include potential fraud by employees and third parties, which could adversely affect business operations[200] Capital and Regulatory Compliance - Equity Bank must maintain a minimum common equity Tier 1 (CET1) risk-based capital ratio of 4.5% and a total risk-based capital ratio of 8% under Basel III rules[86] - As of December 31, 2024, Equity Bank exceeded the capital levels required to be deemed well capitalized[92] - The Kansas Banking Code requires Equity Bank to transfer 25% of its net profits to its surplus fund before declaring dividends[104] - Equity Bank's ability to pay dividends is restricted if its capital conservation buffer is less than or equal to 2.5%[86] - The Federal Reserve can impose civil money penalties for unsafe banking practices, which can be as high as $1 million per day[84] - Equity Bank is subject to regulatory capital requirements that may be higher for institutions making acquisitions or experiencing internal growth[87] - The bank's dividend policy is subject to the discretion of its board of directors, which considers various financial factors[106] - The company is required to maintain specific capital standards, and failure to do so could adversely affect customer confidence and result in regulatory restrictions[219] - The company may need to raise additional capital in the future due to potential increased minimum capital thresholds, which could be dilutive to stockholders[221] Competition and Market Conditions - The financial services industry is highly competitive, with the company focusing on competitive pricing, personalized service, and community involvement to retain and attract customers[67] - The company faces significant competition from larger financial institutions, which may offer more attractive interest rates and terms, impacting loan growth[171] - Competition for acquisition candidates is high, potentially hindering growth strategy[161] - The company’s operations are concentrated in Arkansas, Kansas, Missouri, and Oklahoma, making it vulnerable to regional economic conditions[168] - Difficult market conditions for financial products may lead to increased delinquencies and adversely affect business operations[170] Technology and Innovation - Significant investments are being made in information technology systems to enhance capabilities and support future growth and acquisitions[65] - The company offers a comprehensive suite of online banking solutions, including mobile banking and electronic delivery of customer statements[58] - The company utilizes a customized customer relationship management system, Equity Connect, to improve customer service and relationship management[30] Employee and Talent Development - The company has invested in talent development and leadership programs, such as "Equity University," to enhance employee capabilities[30] - As of December 31, 2024, the company employed 810 full-time equivalent employees, with no employees represented by collective bargaining units[70] Cybersecurity and Operational Risks - The company faces heightened risks from cyber threats, requiring significant capital and resources to protect against potential breaches[193] - Recent data breaches in the industry have led to increased operating costs for security improvements[194] - Cybersecurity risks have escalated due to the proliferation of new technologies and sophisticated attack methods[195] - The company invests in systems to detect and prevent breaches but acknowledges the challenges in fully mitigating risks[196] Financial Performance and Profitability - Company’s profitability is vulnerable to interest rate fluctuations, significantly impacting net interest income[155] - Interest rate spreads have narrowed in recent years, which could adversely affect financial condition and results of operations[156] - Company attempts to minimize adverse effects of interest rate changes by structuring asset-liability composition[157] - Financial instruments measured at fair value may increase earnings volatility and affect accumulated other comprehensive income (AOCI)[158] Legislative and Regulatory Environment - The company is subject to significant legislative changes that could impact its business, particularly in the financial services sector, with unclear prospects for major banking reform legislation[212] - The CFPB's enforcement actions may impose higher compliance standards on the company, affecting its operations and requiring significant adjustments[215] - Changes in laws and regulations may lead to increased costs and lower revenues for the company, affecting its operations and financial condition[210] Dividend and Stockholder Considerations - The ability to pay dividends is restricted by legal and regulatory limitations, impacting cash available for stockholder dividends[243] - The market price of Class A common stock may be subject to substantial fluctuations, making it difficult for stockholders to sell shares at desired prices[235] - Future acquisitions may involve issuing additional common stock, which could be dilutive to existing stockholders[247] - Significant institutional investors hold a large portion of outstanding equity, potentially conflicting with other stockholders' interests[249] - Directors and executive officers beneficially own a significant portion of Class A common stock, allowing them to exert substantial influence over company affairs[250]

Financial Data and Key Metrics Changes - The company reported record earnings per share of $4.04 for the year, indicating strong financial performance [6]. Business Line Data and Key Metrics Changes - The company experienced net interest margin expansion and strong earnings, contributing to overall financial growth [6]. Market Data and Key Metrics Changes - The company completed two M&A transactions, which contributed to franchise growth [6]. Company Strategy and Development Direction - The company is focused on capital raising through common stock and aims to continue its growth trajectory through strategic acquisitions [6]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance and highlighted the successful completion of the year with strong financial results [6]. Other Important Information - The call included a reminder about forward-looking statements and the associated risks [4]. Q&A Session Summary Question: What were the key drivers behind the record earnings? - Management attributed the record earnings to net interest margin expansion and successful capital raising efforts [6].