UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-37624 EQUITY BANCSHARES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 001-37624 EQUITY BANCSHARES, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incor ...

July 19, 2023 ✓Opened branches in Lees Summit & Overland Park, Kansas ✓Launched Equity Trust & Wealth Management Start-Up: 2002 - 2007 Scale: 2017-2023 Robust Funding Capacity, Anchored by a Diverse, Low-Cost Deposit Base Exhibit 99.2 This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of the management ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed interim consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) | ASSETS (in thousands) | March 31, 2023 | December 31, 2022 | | :---------------------- | :------------- | :---------------- | | Cash and cash equivalents | $250,366 | $104,428 | | Available-for-sale securities | $1,183,247 | $1,184,390 | | Loans, net | $3,285,515 | $3,265,701 | | Total assets | $5,156,716 | $4,981,651 | | LIABILITIES AND STOCKHOLDERS' EQUITY (in thousands) | March 31, 2023 | December 31, 2022 | | :-------------------------------------------------- | :------------- | :---------------- | | Total deposits | $4,286,933 | $4,241,807 | | Federal Reserve Bank borrowings | $140,000 | — | | Total liabilities | $4,731,593 | $4,571,593 | | Total stockholders' equity | $425,123 | $410,058 | | Total liabilities and stockholders' equity | $5,156,716 | $4,981,651 | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) | (Dollar amounts in thousands, except per share data) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Total interest and dividend income | $56,123 | $42,652 | | Total interest expense | $17,013 | $3,363 | | Net interest income | $39,110 | $39,289 | | Provision (reversal) for credit losses | $(366) | $(412) | | Total non-interest income | $9,089 | $9,022 | | Total non-interest expense | $33,718 | $29,459 | | Net income (loss) | $12,323 | $15,650 | | Basic earnings (loss) per share | $0.78 | $0.94 | | Diluted earnings (loss) per share | $0.77 | $0.93 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) | (Dollar amounts in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------- | :-------------------------------- | :-------------------------------- | | Net income | $12,323 | $15,650 |\ | Other comprehensive income (loss), net of tax | $12,273 | $(51,788) | | Comprehensive income (loss) | $24,596 | $(36,138) | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) | (Dollar amounts in thousands) | Balance at January 1, 2023 | Net Income | Other Comprehensive Income (Loss), net of tax effects | Cash Dividends - Common Stock | Treasury Stock Purchases | Balance at March 31, 2023 | | :---------------------------- | :------------------------- | :--------- | :---------------------------------------------------- | :---------------------------- | :----------------------- | :------------------------ | | Total Stockholders' Equity | $410,058 | $12,323 | $12,273 | $(1,573) | $(9,593) | $425,123 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) | (Dollar amounts in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $19,132 | $7,804 | | Net cash (used in) provided by investing activities | $(18,244) | $(165,912) | | Net cash (used in) provided by financing activities | $145,050 | $(11,796) | | Net change in cash and cash equivalents | $145,938 | $(169,904) | | Ending cash and cash equivalents | $250,366 | $90,050 | [Condensed Notes to Interim Consolidated Financial Statements](index=13&type=section&id=Condensed%20Notes%20to%20Interim%20Consolidated%20Financial%20Statements) [NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) - The interim consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC guidance, and include Equity Bancshares, Inc. and its consolidated subsidiaries. Management makes estimates and assumptions that affect reported amounts, and actual results may differ[30](index=30&type=chunk)[31](index=31&type=chunk) - Recent high-profile bank failures have negatively impacted customer confidence in regional banks, potentially affecting Equity Bank's liquidity, loan funding capacity, net interest margin, capital, and results of operations. Equity Bank pledged additional investments to the FRB for liquidity but did not experience significant deposit runoff[33](index=33&type=chunk)[302](index=302&type=chunk) - The Company adopted ASU 2022-02, eliminating accounting guidance for Troubled Debt Restructurings (TDRs) and enhancing disclosure requirements for loan restructurings. This implementation did not have a material financial impact but affected loan disclosures[37](index=37&type=chunk) [NOTE 2 – INVESTMENTS](index=15&type=section&id=NOTE%202%20%E2%80%93%20INVESTMENTS) | Available-for-sale securities (in thousands) | March 31, 2023 | December 31, 2022 | | :------------------------------------------ | :------------- | :---------------- | | Amortized Cost | $1,315,258 | $1,332,419 | | Fair Value | $1,183,247 | $1,184,390 | | Gross Unrealized Losses | $(132,183) | $(148,101) | - Unrealized losses on securities have not been recognized into income because issuers are high credit quality, management does not intend to sell, and it is likely the Company will not be required to sell prior to recovery. The decline in fair value is largely due to interest rate changes[48](index=48&type=chunk) - The Company's available-for-sale investments with credit risk include private label residential mortgage-backed securities, corporate securities, and state and political subdivisions securities. No credit losses are anticipated in these portfolios[49](index=49&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[54](index=54&type=chunk) [NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES](index=20&type=section&id=NOTE%203%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) | Loan Categories (in thousands) | March 31, 2023 | December 31, 2022 | | :----------------------------- | :------------- | :---------------- | | Commercial real estate | $1,746,834 | $1,721,268 | | Commercial and industrial | $605,576 | $594,863 | | Residential real estate | $563,791 | $570,550 | | Agricultural real estate | $202,274 | $199,189 | | Agricultural | $106,169 | $120,003 | | Consumer | $105,974 | $105,675 | | Total loans | $3,330,618 | $3,311,548 | | Allowance for credit losses | $(45,103) | $(45,847) | | Net loans | $3,285,515 | $3,265,701 | | Allowance for Credit Losses Activity (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Beginning balance | $45,847 | $48,365 | | Provision for credit losses | $(366) | $(412) | | Loans charged-off | $(638) | $(534) | | Recoveries | $260 | $171 | | Total ending allowance balance | $45,103 | $47,590 | - Total nonaccrual loans decreased from **$17.6 million** at December 31, 2022, to **$16.55 million** at March 31, 2023. The allowance for credit losses on off-balance-sheet credit exposures increased from **$1,353 thousand** to **$1,485 thousand**[70](index=70&type=chunk)[94](index=94&type=chunk) [NOTE 4 – DERIVATIVE FINANCIAL INSTRUMENTS](index=30&type=section&id=NOTE%204%20%E2%80%93%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) - The Company uses interest rate swaps and caps/floors to manage interest rate risk, designating them as fair value hedges (for commercial real estate loans) or cash flow hedges (for subordinated notes interest expense and prime rate adjustable rate loans interest income)[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk) | Derivative Notional Balances (in thousands) | March 31, 2023 | December 31, 2022 | | :------------------------------------------ | :------------- | :---------------- | | Derivatives designated as hedging instruments | $271,092 | $179,028 | | Derivatives not designated as hedging instruments | $197,178 | $184,277 | | Total | $468,270 | $363,305 | | Net Gains (Losses) on Derivatives (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :----------------------------------------------- | :-------------------------------- | :-------------------------------- | | Derivatives designated as hedging instruments | $8 | $38 | | Derivatives not designated as hedging instruments | $(3) | $675 | | Net gains (losses) on derivatives and hedging activities | $5 | $713 | [NOTE 5 – LEASE OBLIGATIONS](index=33&type=section&id=NOTE%205%20%E2%80%93%20LEASE%20OBLIGATIONS) | Operating Leases (in thousands) | March 31, 2023 | December 31, 2022 | | :------------------------------ | :------------- | :---------------- | | Right-of-Use Asset | $5,090 | $5,256 | | Lease Liability | $5,062 | $5,294 | | Weighted Average Lease Term (Years) | 13.1 | 13.2 | | Weighted Average Discount Rate | 2.32% | 2.32% | | Operating Lease Costs (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | | Total operating lease cost | $210 | $220 | [NOTE 6 – BORROWINGS](index=34&type=section&id=NOTE%206%20%E2%80%93%20BORROWINGS) | Borrowings (in thousands) | March 31, 2023 | December 31, 2022 | | :------------------------ | :------------- | :---------------- | | Retail repurchase agreements | $45,098 | $46,478 | | Federal Home Loan Bank advances | $111,222 | $138,864 | | Federal Reserve Bank borrowings | $140,000 | — | | Subordinated debt | $96,522 | $96,392 | - The Company had a borrowing capacity of **$452.8 million** with the Federal Reserve Bank at March 31, 2023, and borrowed **$140 million** under the Bank Term Funding Program at a rate of **4.38%** with a one-year term[122](index=122&type=chunk) - The bank stock loan facility was renewed on February 10, 2023, with a new maturity date of February 10, 2024, maintaining a maximum borrowing amount of **$25 million**. There were no outstanding principal balances on this loan at March 31, 2023[126](index=126&type=chunk)[127](index=127&type=chunk) [NOTE 7 – STOCKHOLDERS' EQUITY](index=37&type=section&id=NOTE%207%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) | Common Stock Shares | March 31, 2023 | December 31, 2022 | | :------------------ | :------------- | :---------------- | | Class A common stock – outstanding | 15,730,257 | 15,930,112 | | Class B common stock – outstanding | — | — | - The Company repurchased **320,050 shares** of common stock at an average price of **$29.97 per share** during the three months ended March 31, 2023, under a program authorized in September 2022. As of March 31, 2023, **459,488 shares** remained available for repurchase[148](index=148&type=chunk) | Accumulated Other Comprehensive Income (Loss) (in thousands) | March 31, 2023 | December 31, 2022 | | :----------------------------------------------------------- | :------------- | :---------------- | | Net unrealized or unamortized gains (losses) | $(134,075) | $(150,892) | | Tax effect | $32,837 | $37,381 | | Total | $(101,238) | $(113,511) | [NOTE 8 – REGULATORY MATTERS](index=38&type=section&id=NOTE%208%20%E2%80%93%20REGULATORY%20MATTERS) - Equity Bancshares, Inc. and Equity Bank meet all capital adequacy requirements, with Equity Bank categorized as **'well capitalized'** under prompt corrective action regulations as of March 31, 2023[152](index=152&type=chunk)[154](index=154&type=chunk)[309](index=309&type=chunk)[311](index=311&type=chunk) | Capital Ratios (March 31, 2023) | Actual Ratio | Minimum Required (Basel III) | To Be Well Capitalized | | :------------------------------ | :----------- | :--------------------------- | :--------------------- | | Total capital to risk weighted assets (Equity Bancshares, Inc.) | 15.98% | 10.50% | N/A | | Tier 1 capital to risk weighted assets (Equity Bancshares, Inc.) | 12.83% | 8.50% | N/A | | Common equity Tier 1 capital to risk weighted assets (Equity Bancshares, Inc.) | 12.21% | 7.00% | N/A | | Tier 1 leverage to average assets (Equity Bancshares, Inc.) | 9.60% | 4.00% | N/A | | Total capital to risk weighted assets (Equity Bank) | 15.66% | 10.50% | 10.00% | | Tier 1 capital to risk weighted assets (Equity Bank) | 14.43% | 8.50% | 8.00% | | Common equity Tier 1 capital to risk weighted assets (Equity Bank) | 14.43% | 7.00% | 6.50% | | Tier 1 leverage to average assets (Equity Bank) | 10.80% | 4.00% | 5.00% | [NOTE 9 – EARNINGS PER SHARE](index=39&type=section&id=NOTE%209%20%E2%80%93%20EARNINGS%20PER%20SHARE) | Earnings Per Share | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :----------------- | :-------------------------------- | :-------------------------------- | | Basic EPS | $0.78 | $0.94 | | Diluted EPS | $0.77 | $0.93 | | Antidilutive Shares | March 31, 2023 | March 31, 2022 | | :------------------ | :------------- | :------------- | | Stock options | 255,510 | 201,758 | | Restricted stock units | 9,980 | 3,505 | | Total antidilutive shares | 265,490 | 205,263 | [NOTE 10 – FAIR VALUE](index=41&type=section&id=NOTE%2010%20%E2%80%93%20FAIR%20VALUE) - The Company uses fair value measurements (Level 1, 2, and 3 inputs) for recurring adjustments to available-for-sale securities, equity securities, and derivatives, and non-recurring adjustments for individually assessed loans and other real estate owned[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk)[168](index=168&type=chunk)[169](index=169&type=chunk)[173](index=173&type=chunk) | Assets Measured at Fair Value (in thousands) | March 31, 2023 (Level 1) | March 31, 2023 (Level 2) | March 31, 2023 (Level 3) | | :------------------------------------------- | :----------------------- | :----------------------- | :----------------------- | | Total assets | $232,604 | $952,682 | $— | | Total liabilities | $(3,758) | $6,510 | $— | - Individually evaluated loans and other real estate owned are classified as Level 3 due to significant judgment and unobservable inputs in their valuation, such as adjustments for differences in comparable sales[177](index=177&type=chunk)[179](index=179&type=chunk) [NOTE 11 – COMMITMENTS AND CREDIT RISK](index=47&type=section&id=NOTE%2011%20%E2%80%93%20COMMITMENTS%20AND%20CREDIT%20RISK) | Commitments (in thousands) | March 31, 2023 (Fixed Rate) | March 31, 2023 (Variable Rate) | December 31, 2022 (Fixed Rate) | December 31, 2022 (Variable Rate) | | :------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | :-------------------------------- | | Commitments to make loans | $67,149 | $271,420 | $73,185 | $210,266 | | Unused lines of credit | $141,115 | $357,582 | $130,843 | $354,408 | | Standby letters of credit | $16,023 | $26,776 | $16,358 | $25,791 | - The Company extends credit for commercial real estate, residential mortgages, working capital, and consumer loans, evaluating creditworthiness on a case-by-case basis with collateral obtained as deemed necessary[184](index=184&type=chunk)[185](index=185&type=chunk) [NOTE 12 – LEGAL MATTERS](index=48&type=section&id=NOTE%2012%20%E2%80%93%20LEGAL%20MATTERS) - Equity Bank is involved in three class-action lawsuits filed in Kansas and Missouri District Courts, alleging improperly collected overdraft fees. The Company believes these lawsuits are without merit and intends to vigorously defend against the claims, but is currently unable to reasonably estimate potential loss amounts[191](index=191&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk)[194](index=194&type=chunk) [NOTE 13 – REVENUE RECOGNITION](index=48&type=section&id=NOTE%2013%20%E2%80%93%20REVENUE%20RECOGNITION) - The majority of the Company's revenue comes from interest income on financial instruments, which are outside the scope of ASC 606. Services within ASC 606, such as service charges, debit card income, and insurance sales commissions, are recognized as non-interest income when obligations are satisfied[195](index=195&type=chunk) | Non-Interest Income (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Service charges and fees | $2,545 | $2,522 | | Debit card income | $2,554 | $2,628 | | Mortgage banking | $88 | $562 | | Increase in value of bank-owned life insurance | $1,583 | $865 | | Total non-interest income | $9,089 | $9,022 | [NOTE 14 – BUSINESS COMBINATIONS AND BRANCH SALES](index=49&type=section&id=NOTE%2014%20%E2%80%93%20BUSINESS%20COMBINATIONS%20AND%20BRANCH%20SALES) - The Company sold three branch locations in Kansas to United Bank and Trust on June 24, 2022, and one branch location in Oklahoma to High Plains Bank on November 10, 2022. No related costs were incurred for these sales during the three months ended March 31, 2023[198](index=198&type=chunk)[199](index=199&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and results, including operating results, financial position, liquidity, and capital [Overview](index=51&type=section&id=Overview) - Equity Bancshares, Inc. is a financial holding company headquartered in Wichita, Kansas, operating **64 full-service banking sites** across Arkansas, Kansas, Missouri, and Oklahoma[203](index=203&type=chunk) | Financial Highlights (in millions) | March 31, 2023 | December 31, 2022 | | :------------------------------- | :------------- | :---------------- | | Consolidated total assets | $5,160 | $4,980 | | Total loans held for investment, net | $3,280 | $3,270 | | Total deposits | $4,290 | $4,240 | | Total stockholders' equity | $425.1 | $410.1 | | Net income (Q1) | $12.3 | $11.6 (Q4) | [Critical Accounting Policies](index=52&type=section&id=Critical%20Accounting%20Policies) - Key critical accounting policies requiring complex management judgment include the Allowance for Credit Losses (ACL) and Goodwill. The ACL is management's estimate of expected credit losses over the loan portfolio's life, influenced by historical data, economic conditions, and asset quality trends. Goodwill is assessed annually for impairment, with no triggering events identified for Q1 2023[207](index=207&type=chunk)[209](index=209&type=chunk) - Significant changes in loan quality or economic conditions could materially impact the allowance for credit losses. Under the CECL methodology, the life-of-loan perspective can exacerbate periodic differences due to changing contractual or adjusted duration of assets[208](index=208&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) [Net Income](index=53&type=section&id=Net%20Income) | Net Income (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------ | :-------------------------------- | :-------------------------------- | | Net income allocable to common stockholders | $12,323 | $15,650 | | Diluted earnings per share | $0.77 | $0.93 | - The decrease in net income was primarily due to a **$4.3 million** increase in non-interest expense, partially offset by a **$1.1 million** decrease in income tax expense[214](index=214&type=chunk) [Net Interest Income and Net Interest Margin Analysis](index=53&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20Analysis) | Net Interest Analysis | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Net interest income | $39,110 | $39,289 | | Interest rate spread | 2.96% | 3.26% | | Net interest margin | 3.44% | 3.38% | - Interest income on interest-earning assets increased by **$13.5 million**, driven by higher yields on loans (up **133 bps**) and taxable securities (up **53 bps**). Interest expense on deposits increased by **$12.1 million** due to rising market interest rates, with the cost of interest-bearing deposits increasing from **0.22%** to **1.73%**[226](index=226&type=chunk)[227](index=227&type=chunk) - Net interest margin increased by **6 basis points**, while net interest spread decreased by **30 basis points**, as the re-pricing of interest-bearing liabilities and their increased average balance outpaced the re-pricing of interest-earning assets[228](index=228&type=chunk)[229](index=229&type=chunk) [Provision for Credit Losses](index=57&type=section&id=Provision%20for%20Credit%20Losses) | Credit Loss Activity (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------------- | :-------------------------------- | :-------------------------------- | | Provision (reversal) for credit losses | $(366) | $(412) | | Net charge-offs | $378 | $363 | | Gross charge-offs | $638 | $534 | | Gross recoveries | $260 | $171 | - The reversal for credit losses in Q1 2023 reflects continued positive credit trends without significant losses. The Company's allowance for credit losses calculation anticipates slowing prepayment rates and ongoing market disruption from inflation and monetary policy[231](index=231&type=chunk) [Non-Interest Income](index=57&type=section&id=Non-Interest%20Income) | Non-Interest Income (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change (2023 vs 2022) | | :--------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | | Service charges and fees | $2,545 | $2,522 | $23 (0.9%) | | Debit card income | $2,554 | $2,628 | $(74) (-2.8%) | | Mortgage banking | $88 | $562 | $(474) (-84.3%) | | Increase in value of bank-owned life insurance | $1,583 | $865 | $718 (83.0%) | | Total non-interest income | $9,089 | $9,022 | $67 (0.7%) | - The overall increase in non-interest income was primarily driven by a **$718 thousand** increase in bank-owned life insurance value, largely offset by a **$474 thousand** decrease in mortgage banking income due to reduced activity from higher mortgage interest rates[237](index=237&type=chunk) [Non-Interest Expense](index=58&type=section&id=Non-Interest%20Expense) | Non-Interest Expense (in thousands) | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change (2023 vs 2022) | | :---------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------- | | Salaries and employee benefits | $16,692 | $15,068 | $1,624 (10.8%) | | FDIC insurance | $360 | $180 | $180 (100.0%) | | Other | $4,706 | $2,174 | $2,532 (116.5%) | | Total non-interest expense | $33,718 | $29,459 | $4,259 (14.5%) | - The **$4.3 million** increase in non-interest expense was mainly due to a **$1.6 million** rise in salaries and employee benefits (including **$824 thousand** in employee salaries and **$444 thousand** in share-based compensation) and a **$2.5 million** increase in 'Other' expenses, driven by higher provision for unfunded commitments, solar tax credit losses, and ERMI premium expense[240](index=240&type=chunk)[241](index=241&type=chunk) [Efficiency Ratio](index=58&type=section&id=Efficiency%20Ratio) | Efficiency Ratio | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--------------- | :-------------------------------- | :-------------------------------- | | Efficiency ratio | 70.0% | 60.4% | - The efficiency ratio increased to **70.0%** from **60.4%**, primarily due to higher non-interest expense and a decrease in net interest income, as the volume and cost of interest-bearing liabilities grew faster than the yield on interest-bearing assets[243](index=243&type=chunk) [Income Taxes](index=59&type=section&id=Income%20Taxes) | Income Tax | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--------- | :-------------------------------- | :-------------------------------- | | Effective income tax rate | 17.0% | 18.8% | - The effective income tax rate decreased to **17.0%** from **18.8%**, benefiting from a **$69 thousand** tax benefit from stock settlements and options exercise, and a **$686 thousand** benefit from federal tax credits[245](index=245&type=chunk) [Financial Condition](index=59&type=section&id=Financial%20Condition) [Loan Portfolio](index=59&type=section&id=Loan%20Portfolio) | Loan Portfolio Composition | March 31, 2023 (Amount) | March 31, 2023 (Percent) | December 31, 2022 (Amount) | December 31, 2022 (Percent) | Change (Amount) | Change (%) | | :------------------------- | :---------------------- | :----------------------- | :------------------------- | :-------------------------- | :-------------- | :--------- | | Commercial and industrial | $605,576 | 18.2% | $594,863 | 18.0% | $10,713 | 1.8% | | Commercial real estate | $1,746,834 | 52.4% | $1,721,268 | 52.0% | $25,566 | 1.5% | | Residential real estate | $563,791 | 16.9% | $570,550 | 17.2% | $(6,759) | -1.2% | | Agricultural | $106,169 | 3.2% | $120,003 | 3.6% | $(13,834) | -11.5% | | Total loans held for investment | $3,330,618 | 100.0% | $3,311,548 | 100.0% | $19,070 | 0.6% | - Gross total loans, including loans held for sale, were **77.7%** of deposits and **64.6%** of total assets at March 31, 2023, a slight decrease from December 31, 2022[250](index=250&type=chunk) | Loan Interest Rate Type (March 31, 2023) | Total (in thousands) | | :--------------------------------------- | :------------------- | | Loans with a predetermined fixed interest rate | $1,462,067 | | Loans with an adjustable/floating interest rate | $1,868,551 | | Total | $3,330,618 | [Credit Quality Indicators](index=62&type=section&id=Credit%20Quality%20Indicators) - Loans are categorized into risk categories (Pass, Special Mention, Substandard, Doubtful) based on borrower's ability to service debt, financial information, payment history, collateral, and economic trends. Consumer loans are generally 'Pass' unless downgraded by payment status[262](index=262&type=chunk) [Nonperforming Assets](index=62&type=section&id=Nonperforming%20Assets) | Nonperforming Assets (in thousands) | March 31, 2023 | December 31, 2022 | | :---------------------------------- | :------------- | :---------------- | | Nonaccrual loans | $16,550 | $17,601 | | Accruing loans 90+ days past due | $23 | — | | OREO acquired through foreclosure, net | $420 | $600 | | Other repossessed assets | $57 | $47 | | Total nonperforming assets | $17,050 | $18,248 | | Nonperforming assets to total assets | 0.33% | 0.37% | - Nonperforming assets decreased from **$18.2 million** to **$17.1 million**, with nonaccrual loans decreasing from **$17.6 million** to **$16.55 million**. The Company had **172 non-performing credits** and **151 borrowers**, with **5 relationships** exceeding **$1.0 million**[266](index=266&type=chunk)[268](index=268&type=chunk) [Potential Problem Loans](index=64&type=section&id=Potential%20Problem%20Loans) | Potential Problem Loans (in millions) | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Total potential problem loans | $40.1 | $37.6 | - Potential problem loans, classified as special mention or substandard, increased to **$40.1 million** from **$37.6 million**, indicating management concerns about borrowers' repayment ability despite current performance[270](index=270&type=chunk) [Allowance for Credit Losses](index=64&type=section&id=Allowance%20for%20Credit%20Losses) | Allowance for Credit Losses (ACL) | March 31, 2023 | December 31, 2022 | | :-------------------------------- | :------------- | :---------------- | | ACL to total loans | 1.4% | 1.4% | | ACL to non-accrual loans | 272.5% | 229.9% | - Management believes the ACL at March 31, 2023, was adequate to cover expected credit losses. The ACL on loans measured collectively totaled **$41.4 million** (**1.2%** of collective loans), up from **$40.9 million** (**1.2%**) at December 31, 2022[276](index=276&type=chunk)[277](index=277&type=chunk) [Securities](index=66&type=section&id=Securities) | Securities (in thousands) | March 31, 2023 | December 31, 2022 | | :------------------------ | :------------- | :---------------- | | Available-for-sale securities (Fair Value) | $1,183,247 | $1,184,390 | | Held-to-maturity securities (Amortized Cost) | $1,944 | $1,948 | | Securities as % of total assets | 23.0% | 23.8% | - The Company uses its securities portfolio for liquidity, return on funds, interest rate risk management, and regulatory requirements. Debt securities are classified as held-to-maturity or available-for-sale, with no securities purchased for trading[278](index=278&type=chunk)[279](index=279&type=chunk) - At March 31, 2023, **60.6%** of residential mortgage-backed securities had contractual maturities over ten years, with a weighted average life of **5.1 years** and a modified duration of **4.3 years**[289](index=289&type=chunk) [Goodwill Impairment Assessment](index=69&type=section&id=Goodwill%20Impairment%20Assessment) - An interim qualitative analysis at March 31, 2023, concluded no indications of goodwill impairment[290](index=290&type=chunk) [Deposits](index=69&type=section&id=Deposits) | Deposit Composition (in thousands) | March 31, 2023 | December 31, 2022 | | :--------------------------------- | :------------- | :---------------- | | Non-interest-bearing demand | $1,012,671 | $1,097,899 | | Interest-bearing demand | $992,736 | $1,061,264 | | Savings and money market | $1,341,727 | $1,268,320 | | Time | $939,799 | $814,324 | | Total deposits | $4,286,933 | $4,241,807 | - Total deposits increased by **$45.1 million** (**1.1%**) to **$4.29 billion** at March 31, 2023. The Company utilizes Insured Cash Sweep (ICS) and Certificate of Deposit Account Registry Service (CDARS) for large deposits, which are considered core funding[293](index=293&type=chunk)[294](index=294&type=chunk) | Reciprocal and Brokered Deposits (in thousands) | March 31, 2023 | December 31, 2022 | | :---------------------------------------------- | :------------- | :---------------- | | Total reciprocal and brokered deposits | $625,615 | $563,985 | [Other Borrowed Funds](index=70&type=section&id=Other%20Borrowed%20Funds) - The Company uses short-term and long-term borrowings, including federal funds purchased, retail repurchase agreements, FHLB advances, Federal Reserve Bank borrowings, a bank stock loan, and subordinated debt, to supplement deposits for funding lending and investing activities[299](index=299&type=chunk) [Liquidity and Capital Resources](index=70&type=section&id=Liquidity%20and%20Capital%20Resources) [Liquidity](index=70&type=section&id=Liquidity) - Liquidity is managed by meeting customer demands for funds at a reasonable cost. Recent banking sector issues have led to increased scrutiny on liquidity, prompting Equity Bank to pledge additional investments to the FRB and borrow **$140 million** under the Bank Term Funding Program as a precaution[300](index=300&type=chunk)[302](index=302&type=chunk) - Primary liquidity sources include core deposits, security and loan maturities, and amortizing portfolios. Other sources are federal funds purchased, brokered CDs, FHLB, and Federal Reserve Bank borrowings. Cash and cash equivalents increased by **$145.9 million** to **$250.4 million** at March 31, 2023[303](index=303&type=chunk)[305](index=305&type=chunk) [Off-Balance-Sheet Items](index=71&type=section&id=Off-Balance-Sheet%20Items) - Off-balance-sheet items include commitments to extend credit and standby/commercial letters of credit, which carry credit and interest rate risk. The Company applies the same credit policies for these as for on-balance sheet instruments[306](index=306&type=chunk) [Capital Resources](index=71&type=section&id=Capital%20Resources) - The Company and Equity Bank are subject to federal bank regulatory capital requirements and maintain minimum capital relative to assets. Management believes both entities meet all capital adequacy requirements and Equity Bank is categorized as **'well capitalized'** under prompt corrective action regulations[308](index=308&type=chunk)[309](index=309&type=chunk)[311](index=311&type=chunk) [Non-GAAP Financial Measures](index=72&type=section&id=Non-GAAP%20Financial%20Measures) - The Company uses non-GAAP financial measures, such as tangible book value per common share, tangible common equity to tangible assets, return on average tangible common equity, and efficiency ratio, to provide additional insights into financial performance, excluding the impact of intangible assets and certain non-recurring expenses[313](index=313&type=chunk)[315](index=315&type=chunk)[319](index=319&type=chunk)[323](index=323&type=chunk)[325](index=325&type=chunk) [Tangible Book Value Per Common Share and Tangible Book Value Per Diluted Common Share](index=72&type=section&id=Tangible%20Book%20Value%20Per%20Common%20Share%20and%20Tangible%20Book%20Value%20Per%20Diluted%20Common%20Share) | Tangible Book Value Per Share | March 31, 2023 | December 31, 2022 | | :---------------------------- | :------------- | :---------------- | | Book value per common share | $27.03 | $25.74 | | Tangible book value per common share | $22.96 | $21.67 | | Tangible book value per diluted common share | $22.83 | $21.35 | [Tangible Common Equity to Tangible Assets](index=72&type=section&id=Tangible%20Common%20Equity%20to%20Tangible%20Assets) | Tangible Common Equity to Tangible Assets | March 31, 2023 | December 31, 2022 | | :---------------------------------------- | :------------- | :---------------- | | Equity to assets | 8.24% | 8.23% | | Tangible common equity to tangible assets | 7.09% | 7.02% | [Return on Average Tangible Common Equity](index=73&type=section&id=Return%20on%20Average%20Tangible%20Common%20Equity) | Return on Average Equity | March 31, 2023 | December 31, 2022 | | :----------------------- | :------------- | :---------------- | | ROAE annualized | 11.89% | 11.57% | | ROATCE annualized | 14.89% | 14.74% | [Efficiency Ratio](index=74&type=section&id=Efficiency%20Ratio) | Efficiency Ratio (Non-GAAP) | March 31, 2023 | December 31, 2022 | | :-------------------------- | :------------- | :---------------- | | Efficiency Ratio | 70.00% | 70.47% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=75&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risk, primarily interest rate volatility, and its management through balance sheet structuring and simulation analysis - The primary market risk is interest rate volatility, managed by the Asset Liability Committee (ALCO) through balance sheet structuring and simulation analysis (NII and EVE sensitivity). The Company does not have material exposure to leveraged derivatives, foreign exchange, or commodity price risk[328](index=328&type=chunk)[329](index=329&type=chunk)[330](index=330&type=chunk)[331](index=331&type=chunk)[332](index=332&type=chunk) | Impact on Net Interest Income (March 31, 2023) | Change in prevailing interest rates | | :--------------------------------------------- | :---------------------------------- | | +300 basis points | 8.8% | | +200 basis points | 5.8% | | +100 basis points | 2.9% | | -100 basis points | (2.7%) | | -200 basis points | (5.5%) | | Impact on Economic Value of Equity (March 31, 2023) | Change in prevailing interest rates | | :-------------------------------------------------- | :---------------------------------- | | +300 basis points | (11.3%) | | +200 basis points | (6.8%) | | +100 basis points | (3.4%) | | -100 basis points | 1.2% | | -200 basis points | 0.7% | [Item 4. Controls and Procedures](index=76&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes in internal control over financial reporting - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of March 31, 2023, providing reasonable assurance for information accumulation, communication, recording, processing, summarizing, and timely reporting[340](index=340&type=chunk) - There were no material changes in the Company's internal control over financial reporting during the quarter ended March 31, 2023[341](index=341&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various litigation matters in the ordinary course of business, with specific details referenced in Note 12 - The Company is party to various litigation matters incidental to the conduct of its business, as detailed in Note 12 of the Condensed Notes to Interim Consolidated Financial Statements[342](index=342&type=chunk) [Item 1A. Risk Factors](index=77&type=section&id=Item%201A.%20Risk%20Factors) Highlights new material risks from banking industry developments, impacting customer confidence, liquidity, and regulatory costs - Recent high-profile bank failures have eroded customer confidence in the banking system, leading to significant market volatility for regional banks. This could adversely impact Equity Bank's liquidity, loan funding capacity, net interest margin, capital, and results of operations[344](index=344&type=chunk) - Increased regulatory scrutiny and new requirements are anticipated for banks of similar size, potentially raising business costs and reducing profitability. There is an increased focus on deposit composition and uninsured deposits, with Equity Bank's uninsured deposits at **23.4%** of non-brokered deposits as of March 31, 2023[345](index=345&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=77&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchase programs, including shares repurchased and remaining authorization - The Board of Directors authorized a repurchase program in September 2022 for up to **1,000,000 shares**, concluding September 30, 2023. During Q1 2023, the Company repurchased **320,050 shares** at an average price of **$29.97 per share**[347](index=347&type=chunk)[349](index=349&type=chunk) | Common Stock Repurchases (Q1 2023) | Total Number of Shares Purchased | Average Price Paid per Share | Maximum Shares Yet to Be Purchased | | :--------------------------------- | :------------------------------- | :--------------------------- | :--------------------------------- | | January 1 - January 31, 2023 | — | $— | 836,273 | | February 1 - February 28, 2023 | 218,700 | $30.77 | 617,573 | | March 1 - March 31, 2023 | 101,350 | $28.25 | 516,223 | | Total | 320,050 | $29.97 | 516,223 | [Item 3. Defaults Upon Senior Securities](index=78&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported - No defaults upon senior securities were reported[350](index=350&type=chunk) [Item 4. Mine Safety Disclosures](index=78&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - This item is not applicable[350](index=350&type=chunk) [Item 5. Other Information](index=78&type=section&id=Item%205.%20Other%20Information) Reports on significant personnel changes, including the hiring of Richard M. Sems and the resignation of Craig L. Anderson [Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.](index=78&type=section&id=Departure%20of%20Directors%20or%20Certain%20Officers%3B%20Election%20of%20Directors%3B%20Appointment%20of%20Certain%20Officers%3B%20Compensatory%20Arrangements%20of%20Certain%20Officers.) [Hire of Richard M. Sems as President of Equity Bank](index=78&type=section&id=Hire%20of%20Richard%20M.%20Sems%20as%20President%20of%20Equity%20Bank) - Richard M. Sems was hired as President of Equity Bank, effective May 15, 2023, and will also join the board of directors. His employment agreement includes a base salary of **$600,000**, a target annual incentive bonus of **65% of base salary**, and an annual equity award target of **55% of base salary**[350](index=350&type=chunk)[352](index=352&type=chunk) - Mr. Sems received an initial equity award of approximately **$500,000** in time-based stock options and a **$250,000** signing bonus, subject to repayment if employment terminates within three years[353](index=353&type=chunk) [Resignation of Craig L. Anderson as President of Equity Bank](index=79&type=section&id=Resignation%20of%20Craig%20L.%20Anderson%20as%20President%20of%20Equity%20Bank) - Craig L. Anderson resigned from his role as President of Equity Bank, effective June 2, 2023[358](index=358&type=chunk) [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including loan agreements, employment agreements, and certifications - Key exhibits include the Sixth Amendment to Loan and Security Agreement with Servis First Bank (Exhibit 10.1) and the Employment Agreement with Richard M. Sems (Exhibit 10.2†*)[360](index=360&type=chunk)

Equity Bancshares, Inc. (NYSE:EQBK) Q1 2023 Earnings Conference Call April 19, 2023 10:00 AM ET Company Participants Chris Navratil - Investor Relations Brad Elliott - Founder, Chairman and Chief Executive Officer Eric Newell - Executive Vice President and Chief Financial Officer John Creech - Chief Credit Officer Craig Anderson - Executive Vice President and President-Equity Bank Conference Call Participants Jeff Rulis - D.A. Davidson Andrew Liesch - Piper Sandler Damon DelMonte - KBW Terry McEvoy - Stephe ...

Exhibit 99.2 4/19/2023 amended. These forward-looking statements reflect the current views of the management of Equity Bancshares, Inc. ("Equity", "we", "us", "our, "company") with respect to, among other things, future events and Equity's financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," or other comparable words of a future or forward-looking nature. These forward-looking statemen ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-37624 EQUITY BANCSHARES, INC. (Exact name of registrant as specified in its charter) | Kansas 72-1532188 | | --- | | (State or other jurisdictio ...

Financial Data and Key Metrics Changes - The company reported a record net income of $57.7 million for 2022, with a record revenue of $197.8 million, indicating strong franchise performance [44] - Core EPS for the quarter was calculated at $0.70 per diluted share [5] - Net interest income totaled $42 million in the fourth quarter, slightly increasing from $41.9 million in the linked quarter, with net interest margin rising 5 basis points to 3.67% [54][56] - Noninterest income, excluding a gain on branch sale, was $7.9 million, down $1.1 million from the previous quarter [76] Business Line Data and Key Metrics Changes - Loan growth in the quarter, excluding PPP and branch sales, was $56.8 million or 6.9% annualized, with commercial and commercial real estate portfolios growing at 9.25% annualized [11] - The yield on the loan portfolio increased by 50 basis points to 5.59%, while the cost of interest-bearing deposits rose by 45 basis points to 105 basis points [82] - Nonperforming assets declined by $11.5 million to $18 million, with nonaccrual loans finishing the quarter at 0.53% of total loans [49][78] Market Data and Key Metrics Changes - Unemployment rates in the company's two largest markets were reported at less than 3% at year-end, indicating a strong local economy [50] - The company noted that the Midwest economy remains strong, with no significant economic trends of concern observed in its markets [6][10] Company Strategy and Development Direction - The company is focusing on operational efficiencies and building deeper relationships with customers to drive loan growth while being prudent with capital [39][75] - Management is optimistic about the future, emphasizing the importance of maintaining a strong credit quality and exploring partnerships with other banks [15][63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged rising rates, inflation, and economic uncertainty as ongoing concerns but noted that consumer liquidity levels and employment have not yet returned to historically normal levels [79] - The company expects loan growth of around 7% to 8% year-over-year, with a cautious approach to new loan origination [60][69] Other Important Information - The company plans to increase advertising expenses in 2023 to support deposit acquisition efforts [14] - The Texas ratio has improved significantly, declining from a high of 14% to 3% at year-end, indicating better asset quality [51] Q&A Session Summary Question: What are the constraints on loan growth for 2023? - Management indicated that while there are many lending opportunities, they are being moderate in loan origination to ensure alignment with interest rate expectations [16][17] Question: How do deposit betas impact margin outlook? - The company is using a terminal beta of 40% in budgeting for 2023, and continued rate hikes may not significantly alter that assumption [110] Question: What is the outlook for credit quality and provisioning? - Management expects a provision of around 20 basis points on average loans but noted that current credit quality may allow for a lower provision [69]

Q4'22 Outlook FY'23 Outlook = Focus on continued balance sheet strength and security while continuing to pursue growth. 19 Non-GAAP Financial Measures (Unaudited) ROATCE and Efficiency Ratio 23 (Dollars in thousands, except per share data) Add: income tax provision Total average assets 0.82% 5.87% EQUITY BANCSHARES, INC. Retum on average assets (ROAA) annualized PTPP ROAA PTPP ROAE (16) (2,125) 5 8,325 _ $ $ investor.equitybank.com | --- | --- | --- | --- | --- | --- | --- | --- | |--------------------|---- ...

Part I Financial Information [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed interim consolidated financial statements, including balance sheets, income, comprehensive income, equity, and cash flows, with detailed notes on key accounting areas - The financial statements are prepared in accordance with **United States Generally Accepted Accounting Principles (GAAP)** for interim financial information and guidance from the **Securities and Exchange Commission (SEC)**[34](index=34&type=chunk) - Management's preparation of consolidated financial statements requires **estimates and assumptions**, and actual results could differ from these estimates[34](index=34&type=chunk) - Operating results for the nine months ended September 30, 2022, are not necessarily indicative of the results expected for the full year ending December 31, 2022, or any other period[34](index=34&type=chunk) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased to **$5.00 billion**, driven by reduced cash and securities, while stockholders' equity significantly declined due to comprehensive loss Total Assets | Date | Amount ($ thousands) | | :--- | :--- | | Sep 30, 2022 | 5,000,415 | | Dec 31, 2021 | 5,137,631 | | **Change** | **(137,216)** | | **% Change** | **(2.67%)** | Key Asset Changes (Sep 30, 2022 vs Dec 31, 2021) | Asset Category | Dec 31, 2021 ($ thousands) | Sep 30, 2022 ($ thousands) | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 259,954 | 155,413 | (104,541) | | Available-for-sale securities | 1,327,442 | 1,198,962 | (128,480) | | Loans, net | 3,107,262 | 3,208,524 | 101,262 | Total Stockholders' Equity | Date | Amount ($ thousands) | | :--- | :--- | | Sep 30, 2022 | 395,806 | | Dec 31, 2021 | 500,631 | | **Change** | **(104,825)** | | **% Change** | **(20.94%)** | [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income increased for both the three and nine months ended September 30, 2022, driven by higher net interest and non-interest income, despite increased non-interest expenses Net Income (Three Months Ended Sep 30) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income | 15,171 | 11,773 | 3,398 | 28.86% | Net Income (Nine Months Ended Sep 30) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Income | 46,080 | 42,014 | 4,066 | 9.68% | Key Income/Expense Changes (Three Months Ended Sep 30, 2022 vs 2021) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Total interest and dividend income | 48,548 | 42,446 | 6,102 | | Total interest expense | 6,604 | 3,471 | 3,133 | | Net interest income | 41,944 | 38,975 | 2,969 | | Total non-interest income | 8,969 | 7,831 | 1,138 | | Total non-interest expense | 32,236 | 30,689 | 1,547 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly decreased to a loss for both periods, primarily due to substantial unrealized holding losses on available-for-sale securities Comprehensive Income (Loss) (Three Months Ended Sep 30) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Comprehensive Income (Loss) | (28,321) | 7,798 | (36,119) | Comprehensive Income (Loss) (Nine Months Ended Sep 30) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | | :--- | :--- | :--- | :--- | | Comprehensive Income (Loss) | (76,614) | 31,708 | (108,322) | - Unrealized holding gains (losses) on available-for-sale securities, net of tax, were **$(43,492) thousand** for the three months ended September 30, 2022, compared to **$(3,975) thousand** in the prior year, and **$(122,694) thousand** for the nine months ended September 30, 2022, compared to **$(10,306) thousand** in the prior year[21](index=21&type=chunk) [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased by **$104.8 million**, primarily due to significant other comprehensive losses and treasury stock purchases Total Stockholders' Equity | Date | Amount ($ thousands) | | :--- | :--- | | Sep 30, 2022 | 395,806 | | Jan 1, 2022 | 500,631 | | **Change** | **(104,825)** | | **% Change** | **(20.94%)** | - Key changes in stockholders' equity for the nine months ended September 30, 2022, included net income of **$46,080 thousand**, other comprehensive loss of **$(122,694) thousand**, cash dividends of **$(4,208) thousand**, and treasury stock purchases of **$(27,728) thousand**[26](index=26&type=chunk) - Accumulated other comprehensive income (loss), net of tax effects, shifted from a gain of **$1,776 thousand** at January 1, 2022, to a loss of **$(120,918) thousand** at September 30, 2022[26](index=26&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow decreased, investing activities used less cash, and financing activities shifted to a smaller net inflow, resulting in a net decrease in cash and cash equivalents Net Cash Provided by (Used in) Operating Activities (Nine Months Ended Sep 30) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 57,696 | 79,635 | (21,939) | (27.55%) | Net Cash Provided by (Used in) Investing Activities (Nine Months Ended Sep 30) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Investing Activities | (166,620) | (414,493) | 247,873 | (59.80%) | Net Cash Provided by (Used in) Financing Activities (Nine Months Ended Sep 30) | Metric | Sep 30, 2022 ($ thousands) | Sep 30, 2021 ($ thousands) | Change ($ thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Financing Activities | 4,383 | 196,478 | (192,095) | (97.77%) | [Condensed Notes to Interim Consolidated Financial Statements](index=12&type=section&id=Condensed%20Notes%20to%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim consolidated financial statements, covering significant accounting policies, investments, loans, derivatives, lease obligations, borrowings, regulatory matters, earnings per share, fair value measurements, commitments, legal proceedings, revenue recognition, and business combinations/branch sales - The financial statements are prepared in accordance with **GAAP** for interim financial information and **SEC** guidance, relying on management estimates and assumptions[34](index=34&type=chunk) - Operating results for the nine months ended September 30, 2022, are not necessarily indicative of the full year or other periods[34](index=34&type=chunk) - The Company is evaluating new FASB ASUs (2022-01, 2022-02, 2022-03) but does not expect a **material financial impact**, though some will affect future disclosures[39](index=39&type=chunk)[40