Core Viewpoint - Equity Bancshares (EQBK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years, highlighting the importance of earnings revisions in stock price movements [1][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, with institutional investors using these estimates to determine fair value, leading to significant trading activity that affects stock prices [4][6]. Company Performance and Outlook - The upgrade for Equity Bancshares suggests an improvement in the company's underlying business, which is expected to be recognized by investors through a potential increase in stock price [5][10]. - For the fiscal year ending December 2025, Equity Bancshares is projected to earn $3.68 per share, with a 2.9% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7][9]. - The upgrade to Zacks Rank 2 places Equity Bancshares in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Group 1 - The focus is on producing objective, data-driven research primarily about small- to mid-cap companies, which are often overlooked by many investors [1] - Occasionally, large-cap companies are analyzed to provide a broader perspective on the equity markets [1] Group 2 - There is no current stock, option, or similar derivative position in any of the companies mentioned, but there may be a potential beneficial long position initiated in EQBK within the next 72 hours [2] - The article expresses the author's own opinions and is not influenced by compensation from any company mentioned [2]

Financial Data and Key Metrics Changes - The company reported net income of $15.3 million or $0.86 per diluted share, with adjusted earnings of $16.6 million or $0.94 per diluted share [9] - Net interest income for the period was $49.8 million, an increase of $1.8 million linked quarter, with a margin of 4.17%, improving by 10 basis points compared to the previous quarter [9][10] - The tangible common equity (TCE) ratio closed at 10.63%, up 41% year-over-year, and tangible book value per share increased by 25% to $32.17 [7] Business Line Data and Key Metrics Changes - Loan balances year-to-date increased by $100 million, while deposits, excluding seasonal public funds, remained stable [6] - Non-interest income for the quarter was $8.6 million, up $500,000 from Q1, driven by improvements in customer service charge line items [10] - Production in the quarter totaled $197 million, in line with prior period organic production and double that of Q2 2024 [20] Market Data and Key Metrics Changes - Non-accrual loans increased to $42.6 million, up $18.3 million from the previous quarter, primarily due to a specific QSR relationship [14] - Total classified assets closed at $71 million, representing 11.4% of total bank regulatory capital, remaining below historical averages [14] - Delinquency over thirty days decreased to $16.8 million, with net charge-offs annualized at six basis points for the quarter [15] Company Strategy and Development Direction - The company successfully closed its merger with NBC Bank on July 2, 2025, enhancing its presence in Oklahoma [4][5] - The management emphasized a dual strategy of organic growth and strategic mergers and acquisitions (M&A) [7][25] - The company is focused on maintaining a disciplined approach to M&A opportunities, emphasizing value while controlling dilution [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining spread and improving earnings through repositioning of earning assets throughout 2025 [10] - The company has not seen significant concerns in its operating markets that would indicate economic challenges on the horizon [11] - Management remains positive on credit quality trends, with expectations for continued sound credit performance despite broader economic uncertainties [16] Other Important Information - The company plans to refinance its outstanding subordinated debt issue within the month [11] - The management team is focused on growing relationships and deepening wallet share, which is expected to benefit the company in the future [22] Q&A Session Summary Question: Plans for the NBC Bank bond portfolio - The NBC Bank bond portfolio was sold prior to acquisition, resulting in cash balances being brought over, with no immediate actions required [28] Question: Stress within the QSR portfolio - There are softer operating numbers from other borrowers in the QSR sector, but diversification within the portfolio mitigates risks [32] Question: Non-interest expenses decline - The decline in non-interest expenses is predominantly due to M&A savings from the NBC deal [35] Question: Loan growth outlook for the second half of the year - The company is optimistic about continued loan growth, with pipelines at their highest levels and strong activity in C&I lending [49] Question: Margin outlook and deposit growth - The core margin is expected to maintain around 4.17%, with continued opportunities for repricing in both loans and deposits [57] Question: Opportunities in Wichita and aircraft lending - The company's exposure to the aircraft industry is minimal, and there is no significant impact from the aviation sector on the overall business [62] Question: M&A target size range - The company is focusing on institutions between $250 million and $1.5 billion for potential acquisitions [69]

Financial Performance - Equity Bancshares reported core net income of $175 million for Q2 2025[21] - Core earnings per share reached $099 in Q2 2025[21] - The company's net interest margin stood at 417% for Q2 2025[22] - Return on average tangible common equity (ROATCE) was 1264% for Q2 2025[22] - Tangible book value per share increased to $3217 in Q2 2025[6, 18, 19] Balance Sheet - Total assets amounted to $54 billion[6] - Gross loans totaled $36 billion[6, 21] - Total deposits reached $42 billion[6, 21] - The loan to deposit ratio was 850%[54] Capital Management - The company's TCE/TA ratio was 1063%[6] - CET 1 Capital Ratio was 1507%[6] - Total Risk-based Capital Ratio was 1684%[6]

Group 1: Earnings Performance - Equity Bancshares reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, with an earnings surprise of +10.00% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - The revenues for the quarter ended June 2025 were $58.39 million, slightly missing the Zacks Consensus Estimate by 0.36%, compared to $55.43 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Equity Bancshares shares have increased by approximately 1.2% since the beginning of the year, while the S&P 500 has gained 6.4% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.94 on revenues of $64.7 million, and for the current fiscal year, it is $3.68 on revenues of $253.7 million [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is in the top 34% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The performance of Equity Bancshares may also be influenced by the overall outlook for the banking industry [8]

[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]

Part I: Financial Information [Item 1: Financial Statements](index=5&type=section&id=Item%201%3A%20Financial%20Statements) This section presents the Company's unaudited condensed interim consolidated financial statements and detailed notes for Q1 2025 and Q4 2024 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$5.446 billion** by March 31, 2025, driven by loans and cash, with liabilities and equity also increasing | Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------- | :------- | | Total Assets | $5,446,100 | $5,332,047 | $114,053 | 2.14% | | Total Liabilities | $4,828,776 | $4,739,129 | $89,647 | 1.89% | | Total Stockholders' Equity | $617,324 | $592,918 | $24,406 | 4.12% | | Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------- | :------- | | Cash and cash equivalents | $431,382 | $383,747 | $47,635 | 12.41% | | Available-for-sale securities | $950,453 | $1,004,455 | $(54,002) | (5.38)% | | Loans, net of allowance | $3,585,804 | $3,457,549 | $128,255 | 3.71% | | Total deposits | $4,405,364 | $4,374,789 | $30,575 | 0.70% | | Federal Home Loan Bank advances | $236,734 | $178,073 | $58,661 | 32.94% | [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q1 2025 increased to **$15.041 million** (**6.92%**) due to higher net interest income, despite increased expenses | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Net income (loss) allocable to common stockholders | $15,041 | $14,068 | $973 | 6.92% | | Basic earnings (loss) per share | $0.86 | $0.91 | $(0.05) | (5.49)% | | Diluted earnings (loss) per share | $0.85 | $0.90 | $(0.05) | (5.56)% | | Item | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Total interest and dividend income | $74,684 | $71,767 | $2,917 | 4.06% | | Total interest expense | $24,392 | $27,585 | $(3,193) | (11.58)% | | Net interest income | $50,292 | $44,182 | $6,110 | 13.83% | | Provision (reversal) for credit losses | $2,722 | $1,000 | $1,722 | 172.20% | | Total non-interest income | $10,330 | $11,731 | $(1,401) | (11.94)% | | Total non-interest expense | $39,050 | $37,152 | $1,898 | 5.11% | [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly increased to **$25.257 million** in Q1 2025, driven by positive unrealized gains on AFS securities | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Net income | $15,041 | $14,068 | $973 | 6.92% | | Total other comprehensive income (loss) | $13,619 | $(3,794) | $17,413 | (458.98)%| | Comprehensive income (loss) | $25,257 | $11,200 | $14,057 | 125.51% | | Year | Amount (in thousands) | | :--- | :-------------------- | | 2025 | $14,082 | | 2024 | $(6,180) | [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased by **$24.406 million** to **$617.324 million** due to net income and other comprehensive income | Metric | March 31, 2025 (in thousands) | January 1, 2025 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Total Stockholders' Equity | $617,324 | $592,918 | $24,406 | 4.12% | - Key changes in stockholders' equity for the three months ended March 31, 2025, include net income of **$15,041 thousand**, other comprehensive income (loss) of **$10,216 thousand**, cash dividends of **$(2,629) thousand**, and stock-based compensation of **$1,422 thousand**[20](index=20&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities increased to **$21.680 million** in Q1 2025, with overall cash and equivalents rising by **$47.635 million** | Activity | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------------ | :------------------ | :-------------------- | | Operating activities | $21,680 | $12,639 | $9,041 | | Investing activities | $(57,817) | $5,289 | $(63,106) | | Financing activities | $83,772 | $(162,009) | $245,781 | | Net change in cash and cash equivalents | $47,635 | $(144,081) | $191,716 | | Ending cash and cash equivalents | $431,382 | $235,018 | $196,364 | - Key drivers of investing activities in Q1 2025 included a net change in loans of **$(68,393) thousand** and purchase of government guaranteed loans of **$(61,987) thousand**, partially offset by proceeds from sales, calls, pay-downs and maturities of available-for-sale securities of **$78,346 thousand**[23](index=23&type=chunk) - Key drivers of financing activities in Q1 2025 included a net increase in deposits of **$30,556 thousand** and net borrowings on Federal Home Loan Bank line of credit of **$58,661 thousand**[23](index=23&type=chunk) [Condensed Notes to Interim Consolidated Financial Statements](index=12&type=section&id=Condensed%20Notes%20to%20Interim%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, investments, loans, derivatives, borrowings, equity, regulatory matters, and subsequent events [NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=12&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Interim financial statements adhere to **GAAP**, with new pronouncements impacting disclosures but not financial condition - The Company's interim consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles (**GAAP**) for interim financial information and **SEC guidance**, requiring management to make estimates and assumptions[27](index=27&type=chunk) - ASU 2023-09 (Income Taxes) and ASU 2024-03/2025-01 (Expense Disaggregation) are new accounting pronouncements that will impact financial statement disclosures but not the Company's financial condition, results of operations, or cash flows[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [NOTE 2 – INVESTMENTS](index=14&type=section&id=NOTE%202%20%E2%80%93%20INVESTMENTS) Available-for-sale securities decreased to **$950.453 million**, with unrealized losses reducing, while HTM securities remained stable | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------ | :------------------------------- | :-------------------- | :------- | | Available-for-Sale Securities (Fair Value) | $950,453 | $1,004,455 | $(54,002) | (5.38)% | | Gross Unrealized Losses on AFS Securities | $(64,175) | $(76,133) | $11,958 | (15.71)% | | Held-to-Maturity Securities (Amortized Cost) | $5,226 | $5,217 | $9 | 0.17% | - Management does not anticipate credit losses in private label residential mortgage-backed, corporate debt, or state and political subdivisions securities, citing high credit quality and investment-grade ratings[39](index=39&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) [NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES](index=18&type=section&id=NOTE%203%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) Total loans, net of allowance, increased by **$128.255 million** to **$3.586 billion**, with higher provision for credit losses | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Total loans | $3,631,628 | $3,500,816 | $130,812 | 3.74% | | Allowance for credit losses | $(45,824) | $(43,267) | $(2,557) | 5.91% | | Net loans | $3,585,804 | $3,457,549 | $128,255 | 3.71% | | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Provision for credit losses | $2,722 | $1,000 | $1,722 | 172.20% | | Loans charged-off | $(1,139) | $(882) | $(257) | 29.14% | | Recoveries | $974 | $215 | $759 | 353.02% | | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Non-accrual loans | $24,245 | $27,050 | $(2,805) | (10.37)% | [NOTE 4 – DERIVATIVE FINANCIAL INSTRUMENTS](index=31&type=section&id=NOTE%204%20%E2%80%93%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) Derivative notional amount increased to **$304.345 million** as the Company uses swaps to manage interest rate risk - The Company uses interest rate swaps as fair value hedges for commercial real estate loans and as cash flow hedges for subordinated debt and Federal Home Loan Bank advances interest expense and adjustable rate loans interest income[95](index=95&type=chunk)[96](index=96&type=chunk) | Derivative Type | March 31, 2025 Notional Amount (in thousands) | December 31, 2024 Notional Amount (in thousands) | Change (in thousands) | | :------------------------------------------ | :-------------------------------------------- | :--------------------------------------------- | :-------------------- | | Derivatives designated as hedging instruments | $14,101 | $14,503 | $(402) | | Derivatives designated as cash flow hedges | $107,500 | $107,500 | $0 | | Derivatives not designated as hedging instruments | $182,744 | $143,831 | $38,913 | | **Total** | **$304,345** | **$265,834** | **$38,511** | | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Net gains (losses) on derivatives and hedging activities | $396 | $77 | $319 | 414.29% | [NOTE 5 – OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS](index=36&type=section&id=NOTE%205%20%E2%80%93%20OTHER%20REAL%20ESTATE%20OWNED%20AND%20OTHER%20REPOSSESSED%20ASSETS) OREO and other repossessed assets decreased by **50.19%** to **$4.774 million** due to sales proceeds | Asset Type | March 31, 2025 (in thousands) | January 1, 2025 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Other Real Estate Owned | $4,464 | $4,773 | $(309) | (6.47)% | | Other Repossessed Assets | $310 | $4,811 | $(4,501) | (93.56)% | | **Total** | **$4,774** | **$9,584** | **$(4,810)** | **(50.19)%** | - Key activity for the three months ended March 31, 2025, included **$359 thousand** in transfers in, a net gain on sales of **$45 thousand**, and proceeds from sales of **$(5,214) thousand**[107](index=107&type=chunk) | Expense Type | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--------------------------------------- | :------------------ | :------------------ | :-------------------- | | Net loss (gain) on sales | $(45) | $(99) | $54 | | Operating expenses, net of rental income | $146 | $61 | $85 | | **Total** | **$101** | **$(41)** | **$142** | [NOTE 6 – LEASE OBLIGATIONS](index=37&type=section&id=NOTE%206%20%E2%80%93%20LEASE%20OBLIGATIONS) Operating lease assets and liabilities remained stable, with costs increasing to **$177 thousand** in Q1 2025 | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Right-of-Use Asset (in thousands) | $3,474 | $3,600 | | Lease Liability (in thousands) | $3,471 | $3,601 | | Weighted Average Lease Term (Years) | **12.5** | **12.5** | | Weighted Average Discount Rate | **3.28%** | **3.29%** | | Cost Type | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Operating lease cost | $156 | $120 | $36 | 30.00% | | Variable lease cost | $21 | $29 | $(8) | (27.59)% | | **Total operating lease cost** | **$177** | **$149** | **$28** | **18.79%** | [NOTE 7 – BORROWINGS](index=38&type=section&id=NOTE%207%20%E2%80%93%20BORROWINGS) Total borrowings increased to **$371.126 million** due to higher Federal Home Loan Bank advances, with no Federal Reserve borrowings | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Total Borrowings | $371,126 | $312,796 | $58,330 | 18.65% | | Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Federal Home Loan Bank advances | $236,734 | $178,073 | $58,661 | 32.94% | | Federal Reserve Bank borrowings | $0 | $0 | $0 | 0.00% | | Subordinated debt | $97,620 | $97,477 | $143 | 0.15% | - There were no outstanding principal balances on the bank stock loan at March 31, 2025, and December 31, 2024[128](index=128&type=chunk) [NOTE 8 – STOCKHOLDERS' EQUITY](index=43&type=section&id=NOTE%208%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) Class A common stock outstanding increased, and **$10.216 million** reduction in unrealized losses improved comprehensive income | Metric | March 31, 2025 | December 31, 2024 | Change | | :-------------------------- | :------------- | :---------------- | :----- | | Class A common stock – outstanding | **17,530,762** | **17,427,626** | +103,136 | - The Board of Directors approved a share repurchase plan for up to **1,000,000** shares of outstanding common stock, effective October 1, 2024, to September 30, 2025. As of March 31, 2025, **1,000,000** shares remain for repurchase under the program, with no shares repurchased during Q1 2025[149](index=149&type=chunk)[357](index=357&type=chunk) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :------------------------------------ | :---------------------------- | :----------------------------- | :-------------------- | | Accumulated other comprehensive income (loss) | $(44,965) | $(55,181) | $10,216 | [NOTE 9 – REGULATORY MATTERS](index=45&type=section&id=NOTE%209%20%E2%80%93%20REGULATORY%20MATTERS) The Company and Equity Bank meet all capital adequacy requirements and are categorized as **well capitalized** - Both Equity Bancshares, Inc. and Equity Bank meet all capital adequacy requirements to which they are subject as of March 31, 2025, and December 31, 2024[153](index=153&type=chunk)[156](index=156&type=chunk) - Equity Bank is categorized as "**well capitalized**" under the regulatory framework for prompt corrective action, maintaining minimum regulatory capital ratios[155](index=155&type=chunk)[316](index=316&type=chunk) | Ratio | Actual Ratio (March 31, 2025) | Minimum Required (Basel III) | | :------------------------------------------ | :---------------------------- | :--------------------------- | | Total capital to risk weighted assets | **18.32%** | **10.50%** | | Tier 1 capital to risk weighted assets | **15.30%** | **8.50%** | | Common equity Tier 1 capital to risk weighted assets | **14.70%** | **7.00%** | | Tier 1 leverage to average assets | **11.76%** | **4.00%** | [NOTE 10 – EARNINGS PER SHARE](index=46&type=section&id=NOTE%2010%20%E2%80%93%20EARNINGS%20PER%20SHARE) Basic and diluted EPS decreased to **$0.86** and **$0.85** respectively, despite higher net income, due to more shares outstanding | Metric | 2025 | 2024 | Change | % Change | | :------------------------------------------------- | :--- | :--- | :----- | :------- | | Basic earnings (loss) per common share | $0.86 | $0.91 | $(0.05) | (5.49)% | | Diluted earnings (loss) per common share | $0.85 | $0.90 | $(0.05) | (5.56)% | - Weighted average common shares outstanding for basic EPS increased to **17,475,058** in 2025 from **15,416,060** in 2024, and for diluted EPS increased to **17,659,593** in 2025 from **15,569,225** in 2024[159](index=159&type=chunk) | Metric | March 31, 2025 | March 31, 2024 | | :-------------------------- | :------------- | :------------- | | Total antidilutive shares | **311,267** | **182,740** | [NOTE 11 – FAIR VALUE](index=48&type=section&id=NOTE%2011%20%E2%80%93%20FAIR%20VALUE) Fair values of financial instruments are measured using a three-level hierarchy, primarily Level 2 for AFS securities and derivatives - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1 prices), and Level 3 (significant unobservable inputs)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) - Available-for-sale securities and derivatives are primarily valued using Level 2 inputs, while equity securities with readily determinable fair value use Level 1 inputs[167](index=167&type=chunk)[168](index=168&type=chunk)[170](index=170&type=chunk) - Loans individually evaluated for credit losses and other real estate owned are measured on a non-recurring basis using Level 3 inputs, relying on real estate appraisals or broker price opinions with significant judgment[172](index=172&type=chunk)[173](index=173&type=chunk)[177](index=177&type=chunk) [NOTE 12 – COMMITMENTS AND CREDIT RISK](index=54&type=section&id=NOTE%2012%20%E2%80%93%20COMMITMENTS%20AND%20CREDIT%20RISK) Commitments to make loans and unused lines of credit decreased, while standby letters of credit remained stable | Commitment Type | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Commitments to make loans | $349,625 | $418,128 | $(68,503) | (16.38)% | | Unused lines of credit | $525,366 | $539,844 | $(14,478) | (2.68)% | | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :---------------------------- | :----------------------------- | | Standby letters of credit | $41,938 | $42,796 | - The credit risk involved in off-balance-sheet commitments and letters of credit is managed using the same credit policies and procedures as for on-balance-sheet instruments[188](index=188&type=chunk) [NOTE 13 – LEGAL MATTERS](index=55&type=section&id=NOTE%2013%20%E2%80%93%20LEGAL%20MATTERS) Equity Bank faces three class action lawsuits regarding overdraft fees, which the Company intends to vigorously defend - Equity Bank is party to three class action lawsuits alleging improperly collected overdraft fees, filed in Sedgwick County Kansas District Court and Jackson County, Missouri District Court[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - The Company believes the lawsuits are without merit and intends to vigorously defend against the claims[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - At this time, the Company is unable to reasonably estimate the loss amount of this litigation[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) [NOTE 14 – REVENUE RECOGNITION](index=55&type=section&id=NOTE%2014%20%E2%80%93%20REVENUE%20RECOGNITION) Total non-interest income decreased by **$1.401 million** (**11.9%**) due to reduced zero-basis loan recovery and acquisition gains - The majority of the Company's revenues are from interest income on financial instruments, which are outside the scope of ASC 606[195](index=195&type=chunk) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Total non-interest income | $10,330 | $11,731 | $(1,401) | (11.94)% | - The decrease in non-interest income was largely attributable to a reduction in recovery on zero-basis loans and net gain on acquisition, offset by an increase in the value of bank-owned life insurance due to a death benefit realization[238](index=238&type=chunk)[236](index=236&type=chunk) [NOTE 15 – BUSINESS COMBINATIONS AND BRANCH SALES](index=56&type=section&id=NOTE%2015%20%E2%80%93%20BUSINESS%20COMBINATIONS%20AND%20BRANCH%20SALES) The Company agreed to acquire NBC Corp. of Oklahoma, with the acquisition expected to close in Q2 2025 - On April 2, 2025, the Company entered into an agreement to acquire NBC Corp. of Oklahoma (NBC), which includes NBC Oklahoma, an Oklahoma state bank with seven branch locations[198](index=198&type=chunk)[205](index=205&type=chunk) - Acquisition-related costs for the NBC transaction during the three months ended March 31, 2025, were **$66 thousand** (**$50 thousand** on an after-tax basis)[198](index=198&type=chunk) - The acquisition is expected to close in the second quarter of 2025 and will result in the recording of core deposit intangibles and goodwill[205](index=205&type=chunk) [NOTE 16 – SEGMENT REPORTING](index=56&type=section&id=NOTE%2016%20%E2%80%93%20SEGMENT%20REPORTING) Equity Bancshares, Inc. operates as a **single operating segment** through Equity Bank, with distinct performance metrics - Equity Bancshares, Inc. operates as a **single operating segment** for financial reporting purposes, primarily through its wholly-owned subsidiary, Equity Bank[199](index=199&type=chunk) - The executive leadership team uses gross profit and profit or loss from operations before interest and income taxes to allocate resources for the holding company, and net-interest income and non-interest income for Equity Bank[200](index=200&type=chunk) [NOTE 17 – SUBSEQUENT EVENTS](index=59&type=section&id=NOTE%2017%20%E2%80%93%20SUBSEQUENT%20EVENTS) The Company will acquire NBC Corp. of Oklahoma, adding **$903.349 million** in assets and **$810.727 million** in deposits - On April 2, 2025, the Company entered into an agreement to acquire NBC Corp. of Oklahoma (NBC), parent company of NBC Oklahoma[205](index=205&type=chunk) | Metric | March 31, 2025 (in thousands) | | :------------------------------------ | :---------------------------- | | Total assets | $903,349 | | Total loans | $690,012 | | Total liabilities | $832,998 | | Deposits | $810,727 | | Net income before income taxes (Q1 2025) | $3,291 | - The Company anticipates recording core deposit intangibles and goodwill with this acquisition[205](index=205&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%202%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, critical accounting policies, results of operations, financial condition, liquidity, and capital resources [Overview](index=62&type=section&id=Overview) Equity Bancshares, Inc. operates Equity Bank across four states, reporting **$5.45 billion** in assets and **$15.0 million** net income for Q1 2025 - Equity Bancshares, Inc. is a financial holding company operating Equity Bank with **71** full-service banking sites in Arkansas, Kansas, Missouri, and Oklahoma[211](index=211&type=chunk) | Metric | Amount (in millions) | | :------------------------------------ | :------------------- | | Consolidated total assets | $5,450 | | Total loans held for investment, net of allowance | $3,590 | | Total deposits | $4,410 | | Total stockholders' equity | $617.3 | | Year | Net Income (in millions) | | :--- | :----------------------- | | 2025 | $15.0 | | 2024 | $14.1 | [Critical Accounting Policies](index=62&type=section&id=Critical%20Accounting%20Policies) Critical accounting policies for Allowance for Credit Losses and Goodwill involve significant management judgments and assumptions - The Allowance for Credit Losses (ACL) represents management's estimate of all expected credit losses over the expected life of the loan portfolio, based on historical experience, economic conditions, and asset quality trends[214](index=214&type=chunk) - Goodwill, resulting from business acquisitions, is assessed at least annually for impairment (December 31) and more frequently if triggering events occur. A qualitative assessment for Q1 2025 found no evidence of impairment[216](index=216&type=chunk) - Determining the ACL and performing goodwill impairment assessments require complex management judgment and assumptions, and actual results could differ materially from estimates[214](index=214&type=chunk)[215](index=215&type=chunk)[217](index=217&type=chunk) [Results of Operations](index=64&type=section&id=Results%20of%20Operations) Net income increased due to higher net interest income, despite increased provision for credit losses and non-interest expenses [Net Income](index=64&type=section&id=Net%20Income) Net income allocable to common stockholders increased to **$15.0 million** (diluted EPS **$0.85**) in Q1 2025, driven by net interest income | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Net income (loss) allocable to common stockholders | $15,041 | $14,068 | $973 | 6.92% | | Diluted earnings (loss) per share | $0.85 | $0.90 | $(0.05) | (5.56)% | - The increase in net income was largely due to an increase in net interest income of **$4.4 million**, offset by a decrease of **$1.40 million** in other income and an increase in other non-interest expense of **$1.90 million**[221](index=221&type=chunk) [Net Interest Income and Net Interest Margin Analysis](index=64&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20Analysis) Net interest income increased by **$6.110 million** (**13.83%**), with net interest margin improving by **52 basis points** to **4.27%** | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Net interest income | $50,292 | $44,182 | $6,110 | 13.83% | | Metric | 2025 | 2024 | Change (bps) | | :------------------ | :---- | :---- | :----------- | | Net interest margin | **4.27%** | **3.75%** | +52 | | Interest rate spread | **3.63%** | **3.10%** | +53 | - Interest income increased **$2.9 million** due to **$1.8 million** from increased asset volume and **$1.1 million** from higher rates/yields on interest-earning assets. Interest expense decreased **$3.2 million** due to deposit portfolio repricing and reduced Federal Reserve Bank borrowings, partially offset by increased FHLB borrowing[229](index=229&type=chunk)[230](index=230&type=chunk) [Provision for Credit Losses](index=68&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses increased to **$2.7 million** due to loan growth and a general decline in the economic outlook | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Provision for credit losses | $2,722 | $1,000 | $1,722 | 172.20% | | Net charge-offs | $165 | $668 | $(503) | (75.30)% | - The higher provision for credit losses is primarily attributable to loan growth and a general decline in the economic outlook, influenced by recent volatility, potential stress from US trade policy, elevated inflation, supply chain issues, and monetary policy impacts[233](index=233&type=chunk) [Non-Interest Income](index=68&type=section&id=Non-Interest%20Income) Total non-interest income decreased by **$1.401 million** (**11.9%**) due to reduced zero-basis loan recovery and absence of acquisition gains | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Total non-interest income | $10,330 | $11,731 | $(1,401) | (11.94)% | | Item | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Service charges and fees | $2,064 | $2,569 | $(505) | (19.7)% | | Increase in value of bank-owned life insurance | $3,593 | $828 | $2,765 | 333.9% | | Recovery on zero-basis purchased loans | $2 | $3,345 | $(3,343) | (99.9)% | | Net gain on acquisition and branch sales | $0 | $1,240 | $(1,240) | (100.0)% | - The increase in the value of bank-owned life insurance was driven by the realization of a death benefit on an insured during the quarter[238](index=238&type=chunk) [Non-Interest Expense](index=70&type=section&id=Non-Interest%20Expense) Total non-interest expense increased by **$1.898 million** (**5.1%**) due to higher salaries and data processing costs, offset by lower merger expenses | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Total non-interest expense | $39,050 | $37,152 | $1,898 | 5.11% | | Item | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------ | :------------------ | :------------------ | :-------------------- | :------- | | Salaries and employee benefits | $19,954 | $18,097 | $1,857 | 10.3% | | Data processing | $5,086 | $4,828 | $258 | 5.3% | | Amortization of core deposit intangible | $1,045 | $899 | $146 | 16.2% | | Merger expenses | $66 | $1,556 | $(1,490) | (95.8)% | - The increase in salaries and employee benefits was primarily due to additional payroll costs, increased incentive compensation, and stock-related compensation expense, partly driven by staff increases from 2024 Rockhold and KansasLand mergers. The decrease in merger expenses was due to the completion of the Rockhold merger and preliminary work for the NBC merger[241](index=241&type=chunk)[244](index=244&type=chunk) [Efficiency Ratio](index=70&type=section&id=Efficiency%20Ratio) The efficiency ratio improved to **62.43%** in Q1 2025, indicating more efficient resource allocation due to income growth | Year | Ratio | | :--- | :----- | | 2025 | **62.43%** | | 2024 | **63.45%** | - The improvement in the efficiency ratio was primarily due to a greater percentage increase in interest and other income compared to the percentage increase in non-interest expenses[246](index=246&type=chunk) - The efficiency ratio is a non-GAAP financial measure computed by dividing non-interest expense (excluding goodwill impairment, merger expenses, and loss on debt extinguishment) by the sum of net interest income and non-interest income (excluding net gains on sales of securities and gain on acquisition)[245](index=245&type=chunk) [Income Taxes](index=72&type=section&id=Income%20Taxes) The effective income tax rate decreased to **20.2%** due to increased tax benefits from non-taxable items and lower transaction costs | Year | Rate | | :--- | :---- | | 2025 | **20.2%** | | 2024 | **20.8%** | - The decrease in the effective tax rate was a result of increased tax benefits related to non-taxable bank-owned life insurance, stock compensation, and a reduction in non-deductible transaction costs in the current quarter[248](index=248&type=chunk) - This was partially offset by a tax benefit related to a bargain purchase gain recognized in the quarter ended March 31, 2024[248](index=248&type=chunk) [Financial Condition](index=72&type=section&id=Financial%20Condition) Total assets grew, driven by loans and cash, with liabilities and equity also increasing, and improved credit quality indicators - Total assets increased by **$114.1 million** to **$5.45 billion** at March 31, 2025, driven by a **$130.8 million** increase in loans held for investment and a **$47.6 million** increase in cash and cash equivalents, partially offset by a **$54.0 million** decrease in available-for-sale securities[249](index=249&type=chunk) - Total liabilities rose by **$89.6 million** to **$4.83 billion**, mainly due to increases in total deposits of **$30.6 million** and Federal Home Loan Bank advances of **$58.7 million**[249](index=249&type=chunk) - Total stockholders' equity increased by **$24.4 million** to **$617.3 million**, principally due to net income for the three months ended March 31, 2025, and a decrease in unrealized losses on available-for-sale securities, net of tax[249](index=249&type=chunk) [Loan Portfolio](index=72&type=section&id=Loan%20Portfolio) Total loans held for investment increased by **$130.812 million** (**3.7%**) to **$3.632 billion**, with commercial loans seeing the largest rise | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Total loans held for investment | $3,631,628 | $3,500,816 | $130,812 | 3.7% | | Loan Type | March 31, 2025 Amount (in thousands) | % of Total (2025) | December 31, 2024 Amount (in thousands) | % of Total (2024) | Change (in thousands) | % Change | | :-------------------------- | :----------------------------------- | :---------------- | :------------------------------------ | :---------------- | :-------------------- | :------- | | Commercial and industrial | $762,906 | **21.0%** | $658,865 | **18.8%** | $104,041 | **15.8%** | | Commercial real estate | $1,863,200 | **51.3%** | $1,830,514 | **52.3%** | $32,686 | **1.8%** | | Residential real estate | $563,954 | **15.5%** | $566,766 | **16.2%** | $(2,812) | (0.5)% | - As of March 31, 2025, **62.8%** of loans had adjustable/floating interest rates (**$2,281,262 thousand**), while **37.2%** had predetermined fixed interest rates (**$1,350,366 thousand**)[262](index=262&type=chunk) [Credit Quality Indicators](index=75&type=section&id=Credit%20Quality%20Indicators) Loans are categorized into risk categories (Pass, Special Mention, Substandard, Doubtful) based on borrower ability and economic trends - Loans are categorized into risk categories: Pass, Special Mention, Substandard, and Doubtful, based on factors like borrower's financial information, payment experience, credit documentation, and economic trends[72](index=72&type=chunk)[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk)[266](index=266&type=chunk) - Consumer loans are generally considered pass credits unless downgraded due to payment status or reviewed as part of a larger credit relationship[72](index=72&type=chunk)[266](index=266&type=chunk) [Nonperforming Assets](index=75&type=section&id=Nonperforming%20Assets) Total nonperforming assets decreased by **$6.813 million** (**19.65%**) to **$27.862 million**, improving asset quality ratios | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Total nonperforming assets | $27,862 | $34,675 | $(6,813) | (19.65)% | | Ratio | March 31, 2025 | December 31, 2024 | | :------------------------------------------ | :------------- | :---------------- | | Nonperforming assets to total assets | **0.51%** | **0.65%** | | Nonperforming assets to total loans plus OREO and repossessed assets | **0.77%** | **0.99%** | - Non-accrual loans decreased to **$24.245 million** at March 31, 2025, from **$27.050 million** at December 31, 2024, consisting of **310** separate credits and **257** separate borrowers[270](index=270&type=chunk)[271](index=271&type=chunk) [Potential Problem Loans](index=76&type=section&id=Potential%20Problem%20Loans) Potential problem loans decreased to **$33.1 million**, with close monitoring and evaluation for impairment | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | % Change | | :-------------------------- | :--------------------------- | :------------------------------ | :------------------- | :------- | | Potential problem loans | $33.1 | $35.4 | $(2.3) | (6.49)% | - Potential problem loans are performing loans classified as special mention or substandard, for which management has concerns about the borrower's ability to comply with repayment terms[273](index=273&type=chunk) - These loans are reviewed and evaluated for impairment, with potential write-downs or additions to the allowance for credit losses based on the unlikelihood of full repayment or the net realizable value of collateral[274](index=274&type=chunk) [Allowance for Credit Losses](index=76&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses of **$45.824 million** is deemed adequate, with the total reserve percentage at **1.3%** of total loans | Metric | March 31, 2025 (in thousands) | | :-------------------------- | :---------------------------- | | Allowance for credit losses | $45,824 | - Management believes the allowance for credit losses at March 31, 2025, was adequate to cover current expected credit losses in the loan portfolio[278](index=278&type=chunk) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | ACL to total loans | **1.3%** | **1.3%** | | ACL for collectively measured loans to total collectively measured loans | **1.1%** | **1.1%** | [Securities](index=79&type=section&id=Securities) Securities decreased to **$950.453 million** (**17.5%** of assets), with AFS securities declining and HTM remaining stable | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :---------------- | | Securities as % of total assets | **17.5%** | **18.9%** | | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------ | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Available-for-Sale Securities (Fair Value) | $950,453 | $1,004,455 | $(54,002) | (5.38)% | | Held-to-Maturity Securities (Amortized Cost) | $5,226 | $5,217 | $9 | 0.17% | - At March 31, 2025, **71.4%** of residential mortgage-backed securities had contractual final maturities of more than **ten years**, with a weighted average life of **4.7 years** and a modified duration of **3.9 years**[290](index=290&type=chunk) [Goodwill Impairment Assessment](index=81&type=section&id=Goodwill%20Impairment%20Assessment) An interim qualitative analysis at March 31, 2025, found no indications of goodwill impairment - At March 31, 2025, an interim qualitative analysis was performed, concluding no indications of goodwill impairment[291](index=291&type=chunk) - Goodwill is assessed at least annually for impairment (December 31) and more frequently if a triggering event occurs[216](index=216&type=chunk) - Quantitative goodwill impairment assessments require significant management judgment related to industry performance, business performance, and economic and market conditions[217](index=217&type=chunk) [Deposits](index=81&type=section&id=Deposits) Total deposits increased by **$30.6 million** (**0.7%**) to **$4.41 billion**, though non-brokered deposits decreased | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Total deposits | $4,405,364 | $4,374,789 | $30,575 | 0.7% | - Total deposits, excluding brokered deposits, decreased by **$109.4 million** or **2.6%**. This was driven by decreases in interest-bearing demand and savings and money market deposits, partially offset by an increase in time deposits[295](index=295&type=chunk) | Deposit Type | March 31, 2025 (in thousands) | | :-------------------------- | :---------------------------- | | Reciprocal | $487,417 | | Non-reciprocal brokered | $265,087 | | **Total** | **$737,404** | [Other Borrowed Funds](index=83&type=section&id=Other%20Borrowed%20Funds) Total borrowings increased to **$371.126 million** due to higher FHLB advances, with no Federal Reserve Bank borrowings - The Company utilizes borrowings to supplement deposits to fund its lending and investing activities[303](index=303&type=chunk) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------- | :---------------------------- | :----------------------------- | :-------------------- | :------- | | Total Borrowings | $371,126 | $312,796 | $58,330 | 18.65% | - Federal Home Loan Bank advances increased, while Federal Reserve Bank borrowings were zero at March 31, 2025[121](index=121&type=chunk)[123](index=123&type=chunk) [Liquidity and Capital Resources](index=83&type=section&id=Liquidity%20and%20Capital%20Resources) The Company manages liquidity through core deposits and asset maturities, maintaining strong capital positions above regulatory minimums [Liquidity](index=83&type=section&id=Liquidity) Cash and cash equivalents increased by **$47.6 million** to **$431.4 million** in Q1 2025, driven by financing and operating activities - Liquidity is managed to meet anticipated customer demands and unexpected cash needs, primarily through core deposits, security and loan maturities, and amortizing portfolios[305](index=305&type=chunk)[307](index=307&type=chunk) | Metric | March 31, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | % Change | | :-------------------------- | :--------------------------- | :------------------------------ | :------------------- | :------- | | Cash and cash equivalents | $431.4 | $383.8 | $47.6 | 12.4% | - The increase in cash and cash equivalents was driven by **$83.8 million** net cash provided by financing activities and **$21.7 million** net cash provided by operating activities, offset by **$57.8 million** net cash used in investing activities[309](index=309&type=chunk) [Off-Balance-Sheet Items](index=85&type=section&id=Off-Balance-Sheet%20Items) Off-balance-sheet items like credit commitments and letters of credit are managed with the same credit policies as on-balance-sheet instruments - The Company enters into off-balance-sheet transactions, including commitments to extend credit and standby and commercial letters of credit, to meet customer financing needs[311](index=311&type=chunk) - These transactions involve elements of credit risk and interest rate risk, which are managed using the same credit policies and procedures as for on-balance-sheet instruments[311](index=311&type=chunk) - The fair value of off-balance-sheet items is not considered material[183](index=183&type=chunk) [Capital Resources](index=85&type=section&id=Capital%20Resources) The Company and Equity Bank maintain capital levels well above minimum regulatory requirements, categorized as **well capitalized** - Both Equity Bancshares, Inc. and Equity Bank meet all capital adequacy requirements to which they are subject as of March 31, 2025[314](index=314&type=chunk) - Equity Bank is categorized as "**well capitalized**" under the regulatory framework for prompt corrective action[316](index=316&type=chunk) - Capital management focuses on providing equity to support current and future operations[313](index=313&type=chunk) [Non-GAAP Financial Measures](index=85&type=section&id=Non-GAAP%20Financial%20Measures) The Company uses non-GAAP measures like Tangible Book Value and Efficiency Ratio to provide alternative perspectives on financial performance - The Company uses non-GAAP financial measures to provide alternative perspectives on financial performance by adjusting GAAP measures for specific items, such as goodwill and intangible assets[317](index=317&type=chunk)[321](index=321&type=chunk)[324](index=324&type=chunk) - Key non-GAAP measures include Tangible Book Value Per Common Share, Tangible Common Equity to Tangible Assets, Core Return on Average Equity, Return on Average Tangible Common Equity, Core Net Income and Earnings Per Share, and Efficiency Ratio[320](index=320&type=chunk)[323](index=323&type=chunk)[326](index=326&type=chunk)[327](index=327&type=chunk)[331](index=331&type=chunk)[332](index=332&type=chunk)[335](index=335&type=chunk) - These measures are important to investors and analysts for evaluating changes in financial performance and quality of earnings, exclusive of the effects of intangible assets and non-core items[321](index=321&type=chunk)[324](index=324&type=chunk)[328](index=328&type=chunk)[332](index=332&type=chunk)[336](index=336&type=chunk) [Tangible Book Value Per Common Share and Tangible Book Value Per Diluted Common Share](index=87&type=section&id=Tangible%20Book%20Value%20Per%20Common%20Share%20and%20Tangible%20Book%20Value%20Per%20Diluted%20Common%20Share) Tangible book value per common share increased to **$31.07**, providing a clearer view of book value excluding intangible assets | Metric | March 31, 2025 | December 31, 2024 | Change | % Change | | :------------------------------------------ | :------------- | :---------------- | :----- | :------- | | Tangible book value per common share | $31.07 | $30.07 | $1.00 | 3.33% | | Tangible book value per diluted common share | $30.84 | $29.70 | $1.14 | 3.84% | - Tangible book value is a non-GAAP measure calculated as total stockholders' equity less preferred stock, goodwill, core deposit intangibles, and other intangible assets, divided by common shares outstanding (or diluted common shares outstanding)[320](index=320&type=chunk) [Tangible Common Equity to Tangible Assets](index=87&type=section&id=Tangible%20Common%20Equity%20to%20Tangible%20Assets) The tangible common equity to tangible assets ratio increased to **10.13%**, reflecting stronger capital relative to tangible assets | Metric | March 31, 2025 | December 31, 2024 | Change (percentage points) | | :------------------------------------------ | :------------- | :---------------- | :------------------------- | | Tangible common equity to tangible assets | **10.13%** | **9.95%** | +0.18 | - This non-GAAP measure is calculated as tangible common equity (total stockholders' equity less preferred stock, goodwill, and other intangibles) divided by tangible assets (total assets less goodwill and other intangibles)[323](index=323&type=chunk) [Core Return on Average Equity](index=88&type=section&id=Core%20Return%20on%20Average%20Equity) Core return on average equity decreased to **10.69%**, reflecting return generated from core operations and tangible capital | Year | Ratio | | :--- | :----- | | 2025 | **10.69%** | | 2024 | **13.11%** | - Core return on average equity is calculated by adjusting GAAP net income for non-core gains and losses and excluding non-core expenses, net of tax, and dividing by a simple average of net income and core net income plus average stockholders' equity[326](index=326&type=chunk) [Return on Average Tangible Common Equity](index=88&type=section&id=Return%20on%20Average%20Tangible%20Common%20Equity) Return on average tangible common equity decreased to **12.12%**, assessing profitability from tangible common equity | Year | Ratio | | :--- | :----- | | 2025 | **12.12%** | | 2024 | **14.96%** | - This non-GAAP measure is calculated as core net income allocable to common stockholders (adjusted for goodwill impairment and amortization of intangible assets, net of tax) divided by average tangible common equity (total average stockholders' equity less average intangible assets and preferred stock)[327](index=327&type=chunk) [Core Net Income and Earnings Per Share](index=89&type=section&id=Core%20Net%20Income%20and%20Earnings%20Per%20Share) Core net income increased to **$15.987 million**, while core diluted EPS decreased to **$0.90**, adjusting for non-core impacts | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------------------------------- | :------------------ | :------------------ | :-------------------- | :------- | | Core net income allocable to common stockholders | $15,987 | $15,022 | $965 | 6.42% | | Year | EPS | | :--- | :---- | | 2025 | **$0.90** | | 2024 | **$0.96** | - Core net income and earnings per share are calculated by adjusting GAAP net income for non-core impacts such as amortization of intangible assets, net gain on acquisition, securities transactions, and merger expenses, net of tax[331](index=331&type=chunk)[332](index=332&type=chunk) [Efficiency Ratio](index=90&type=section&id=Efficiency%20Ratio) The efficiency ratio improved to **62.43%**, indicating better operating expense management relative to operating revenue | Year | Ratio | | :--- | :----- | | 2025 | **62.43%** | | 2024 | **63.45%** | - The efficiency ratio is a non-GAAP measure calculated by dividing non-interest expense (excluding goodwill impairment, merger expenses, and loss on debt extinguishment) by the sum of net interest income and non-interest income (excluding net gains on the sale of available-for-sale securities and other securities transactions, and net gain on acquisition)[335](index=335&type=chunk) - Management believes these adjustments allow investors and analysts to better assess operating expenses in relation to operating revenue by removing non-core items[336](index=336&type=chunk) [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=91&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Interest rate volatility is the primary market risk, with NII showing positive impact for rising rates and EVE negative for rising rates - The Company's primary component of market risk is interest rate volatility, managed by the Asset Liability Committee (ALCO) through balance sheet structuring and simulation analysis[340](index=340&type=chunk)[342](index=342&type=chunk)[344](index=344&type=chunk) | Change in prevailing interest rates | Impact on Net Interest Income (March 31, 2025) | | :---------------------------------- | :--------------------------------------------- | | +300 basis points | **11.5%** | | +200 basis points | **7.6%** | | +100 basis points | **3.7%** | | -100 basis points | **(2.0)%** | | -200 basis points | **(4.1)%** | | -300 basis points | **(6.8)%** | | Change in prevailing interest rates | Impact on Economic Value of Equity (March 31, 2025) | | :---------------------------------- | :-------------------------------------------------- | | +300 basis points | **(8.7)%** | | +200 basis points | **(5.8)%** | | +100 basis points | **(3.0)%** | | -100 basis points | **0.1%** | | -200 basis points | **(2.1)%** | | -300 basis points | **(6.5)%** | [Item 4: Controls and Procedures](index=94&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes in internal control - The Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures are effective as of March 31, 2025, to provide reasonable assurance for timely and accurate information disclosure[352](index=352&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the period covered by this Quarterly Report on Form 10-Q[353](index=353&type=chunk) Part II: Other Information [Item 1: Legal Proceedings](index=95&type=section&id=Item%201%3A%20Legal%20Proceedings) Equity Bank is involved in three class action lawsuits regarding overdraft fees, which the Company intends to vigorously defend - Equity Bank is party to three class action lawsuits alleging improperly collected overdraft fees[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk)[354](index=354&type=chunk) - The Company believes these lawsuits are without merit and intends to vigorously defend against the claims[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) - At this time, the Company is unable to reasonably estimate the loss amount of this litigation[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) [Item 1A: Risk Factors](index=95&type=section&id=Item%201A%3A%20Risk%20Factors) No material changes to the Company's risk factors were disclosed in its Annual Report on Form 10-K filed on March 7, 2025 - There have been no material changes in the Company's risk factors previously disclosed in its Annual Report on Form 10-K filed with the SEC on March 7, 2025[355](index=355&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A share repurchase program for **1,000,000** shares was authorized, with no repurchases made as of March 31, 2025 - The Board of Directors authorized a share repurchase program for up to **1,000,000** shares of outstanding common stock, beginning on October 1, 2024, and concluding on September 30, 2025[356](index=356&type=chunk) - No shares were repurchased under this program during the three months ended March 31, 2025[357](index=357&type=chunk) - As of March 31, 2025, **1,000,000** shares remain available for repurchase under the program[357](index=357&type=chunk) [Item 3: Defaults Upon Senior Securities](index=95&type=section&id=Item%203%3A%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities - The Company reported no defaults upon senior securities[358](index=358&type=chunk) [Item 4: Mine Safety Disclosures](index=95&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) Mine Safety Disclosures are not applicable to the Company - Mine Safety Disclosures are not applicable to the Company[358](index=358&type=chunk) [Item 5: Other Information](index=95&type=section&id=Item%205%3A%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements in Q1 2025 - None of the Company's directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[359](index=359&type=chunk) [Item 6: Exhibits](index=96&type=section&id=Item%206%3A%20Exhibits) Exhibits include an amendment to a loan agreement, CEO/CFO certifications, and Inline XBRL documents - Exhibits filed include an Eighth Amendment to Loan and Security Agreement, CEO and CFO certifications (Rule 13a-14(a) and 18 U.S.C. Section 1350), and Inline XBRL documents[360](index=360&type=chunk) - Certifications pursuant to 18 U.S.C. Section 1350 are furnished, not deemed "filed" for purposes of Section 18 of the Exchange Act, and not subject to its liability[361](index=361&type=chunk)

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]