Exhibit 99.2 Third Quarter 2022 Earnings Presentation 10/19/2022 Forward Looking Statements This presentation contains "forward‐looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward‐looking statements reflect the current views of the management of Equity Bancshares, Inc. ("Equity", "we", "us", "our, "company") with respect to, among other things, future events and Equity's financial p ...

Equity Bancshares, Inc. (NYSE:EQBK) Q3 2022 Earnings Conference Call October 19, 2022 10:00 AM ET Company Participants Chris Navratil - SVP, Finance Brad Elliott - Founder, Chairman & CEO Eric Newell - EVP & CFO Gregory Kossover - EVP, COO & Director John Creech - EVP & Chief Credit Officer Conference Call Participants Jeffrey Rulis - D.A. Davidson & Co. Terence McEvoy - Stephens Damon DelMonte - KBW Andrew Liesch - Piper Sandler & Co. Operator Welcome to the Third Quarter 2022 Equity Bancshares Earnings Co ...

[PART I FINANCIAL INFORMATION](index=5&type=section&id=Part%20I%20Financial%20Information) This section presents the unaudited interim consolidated financial information for Equity Bancshares, Inc. [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements of Equity Bancshares, Inc. for the period ended June 30, 2022, including balance sheets, income statements, comprehensive income, stockholders' equity, and cash flows, along with detailed notes on significant accounting policies, securities, loans, derivatives, lease obligations, borrowings, stockholders' equity, regulatory matters, earnings per share, fair value measurements, commitments, credit risk, legal matters, revenue recognition, and business combinations/branch sales [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and equity at specific points in time | Metric | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:-------|:----------------------------------------|:--------------------------------| | Total Assets | 5,002,156 | 5,137,631 | | Total Liabilities | 4,574,041 | 4,637,000 | | Total Stockholders' Equity | 428,115 | 500,631 | - Total assets decreased by **$135.475 million** from December 31, 2021, to June 30, 2022. Total liabilities decreased by **$62.959 million**, and total stockholders' equity decreased by **$72.516 million**[15](index=15&type=chunk) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) This statement details the company's revenues, expenses, and net income over specific reporting periods | Metric | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | |:-------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------------------|:---------------------------------------------| | Total Interest and Dividend Income | 43,624 | 38,318 | 86,276 | 74,130 | | Total Interest Expense | 4,058 | 3,688 | 7,421 | 7,741 | | Net Interest Income | 39,566 | 34,630 | 78,855 | 66,389 | | Provision (reversal) for credit losses | 824 | (1,657) | 412 | (7,413) | | Total Non-Interest Income | 9,637 | 9,100 | 18,659 | 15,812 | | Total Non-Interest Expense | 31,436 | 25,806 | 60,895 | 50,687 | | Net Income | 15,259 | 15,166 | 30,909 | 30,241 | | Basic Earnings Per Share | 0.95 | 1.06 | 1.88 | 2.10 | | Diluted Earnings Per Share | 0.94 | 1.03 | 1.86 | 2.06 | - Net income for the three months ended June 30, 2022, increased slightly to **$15.259 million** from **$15.166 million** in the prior year. For the six months, net income increased to **$30.909 million** from **$30.241 million**[17](index=17&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents net income and other comprehensive income items, reflecting changes in equity from non-owner sources | Metric | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | |:-------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------------------|:---------------------------------------------| | Net Income | 15,259 | 15,166 | 30,909 | 30,241 | | Other Comprehensive Income (Loss), net of tax | (27,414) | 1,431 | (79,202) | (6,331) | | Comprehensive Income (Loss) | (12,155) | 16,597 | (48,293) | 23,910 | - Comprehensive income experienced a significant shift from positive in 2021 to negative in 2022, primarily due to large unrealized holding losses on available-for-sale securities[20](index=20&type=chunk) [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement outlines changes in the company's equity accounts, including retained earnings and other comprehensive income | Metric | June 30, 2022 ($ thousands) | June 30, 2021 ($ thousands) | |:-------|:----------------------------|:----------------------------| | Total Stockholders' Equity | 428,115 | 412,995 | | Retained Earnings | 116,576 | 68,625 | | Accumulated Other Comprehensive Income (Loss), net of tax | (77,426) | 13,450 | | Treasury Stock | (92,136) | (58,650) | - Stockholders' equity increased year-over-year, driven by retained earnings, but was significantly impacted by accumulated other comprehensive losses in 2022[22](index=22&type=chunk)[25](index=25&type=chunk) [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement reports the cash generated and used by operating, investing, and financing activities | Metric | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | |:-------|:---------------------------------------------|:---------------------------------------------| | Net cash provided by (used in) operating activities | 43,136 | 47,236 | | Net cash provided by (used in) investing activities | (173,115) | (430,235) | | Net cash provided by (used in) financing activities | (26,391) | 241,622 | | Net change in cash and cash equivalents | (156,370) | (141,377) | | Ending cash and cash equivalents | 103,584 | 139,321 | - The company experienced a net decrease in cash and cash equivalents for the six months ended June 30, 2022, primarily due to significant cash used in investing and financing activities, partially offset by operating activities[29](index=29&type=chunk)[30](index=30&type=chunk) [Condensed Notes to Interim Consolidated Financial Statements](index=13&type=section&id=Condensed%20Notes%20to%20Interim%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the interim consolidated financial statements [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) This note describes the basis of financial statement preparation and outlines key accounting policies - The interim consolidated financial statements are prepared in accordance with GAAP for interim financial information and SEC guidance, reflecting all necessary adjustments for fair presentation. Operating results for the six months ended June 30, 2022, are not necessarily indicative of the full year[33](index=33&type=chunk) - The company is evaluating recent accounting pronouncements (ASU 2022-01, ASU 2022-02, ASU 2022-03) but does not expect a material financial impact on its condition, results of operations, or cash flows, though future loan disclosures will be affected by ASU 2022-02[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk) [NOTE 2 – SECURITIES](index=14&type=section&id=NOTE%202%20%E2%80%93%20SECURITIES) This note details the company's investment securities portfolio, including fair value and unrealized gains/losses | Metric | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:-------|:----------------------------|:--------------------------------| | Amortized Cost | 1,390,533 | 1,325,015 | | Fair Value | 1,288,180 | 1,327,442 | | Gross Unrealized Gains | 355 | 15,296 | | Gross Unrealized Losses | (102,708) | (12,869) | - As of June 30, 2022, the company held **514** available-for-sale securities in an unrealized loss position, primarily due to changes in interest rates. Management does not intend to sell these securities and expects fair value to recover as they approach maturity[49](index=49&type=chunk)[50](index=50&type=chunk) [NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES](index=17&type=section&id=NOTE%203%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) This note provides a breakdown of the loan portfolio and the allowance for expected credit losses | Loan Category | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:--------------|:----------------------------|:--------------------------------| | Commercial real estate | 1,643,068 | 1,486,148 | | Commercial and industrial | 578,899 | 567,497 | | Residential real estate | 578,936 | 638,087 | | Agricultural real estate | 197,938 | 198,330 | | Agricultural | 124,753 | 166,975 | | Consumer | 99,852 | 98,590 | | Total Loans | 3,223,446 | 3,155,627 | | Allowance for Credit Losses | (48,238) | (48,365) | | Net Loans | 3,175,208 | 3,107,262 | - Total loans increased to **$3.22 billion** at June 30, 2022, from **$3.16 billion** at December 31, 2021, with commercial real estate showing significant growth. The allowance for credit losses remained stable[59](index=59&type=chunk) | Metric | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:-------|:----------------------------|:--------------------------------| | Total Nonaccrual Loans | 28,885 | 39,225 | | Total Troubled Debt Restructurings (TDRs) | 18,192 | 10,799 | | Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures | 1,518 | 2,223 | - Nonaccrual loans decreased from **$39.2 million** to **$28.9 million**, while Troubled Debt Restructurings (TDRs) increased from **$10.8 million** to **$18.2 million**. The allowance for off-balance-sheet credit exposures decreased from **$2.2 million** to **$1.5 million**[67](index=67&type=chunk)[69](index=69&type=chunk)[84](index=84&type=chunk)[89](index=89&type=chunk) [NOTE 4 – DERIVATIVE FINANCIAL INSTRUMENTS](index=26&type=section&id=NOTE%204%20%E2%80%93%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This note describes the company's use of derivative instruments for risk management and their fair values - The Company uses interest rate swaps to manage interest rate risk, designating them as fair value hedges for commercial real estate loans and cash flow hedges for subordinated notes and adjustable-rate loans. Stand-alone derivatives are also used to offset economic impacts of fixed-rate loans[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk)[95](index=95&type=chunk) | Derivative Type | Notional Amount (June 30, 2022, $ thousands) | Derivative Assets (June 30, 2022, $ thousands) | Derivative Liabilities (June 30, 2022, $ thousands) | |:----------------|:---------------------------------------------|:-----------------------------------------------|:----------------------------------------------------| | Hedging Instruments (Interest rate swaps) | 22,107 | 1,694 | — | | Cash Flow Hedges (Interest rate swaps) | 157,500 | 1,733 | 1,549 | | Non-Hedging Instruments (Interest rate swaps) | 150,375 | 2,379 | 2,098 | | Total | 329,982 | 5,806 | 3,647 | - Total notional amount of derivatives increased significantly from **$184.9 million** at December 31, 2021, to **$329.9 million** at June 30, 2022, primarily driven by an increase in cash flow hedges[98](index=98&type=chunk) [NOTE 5 – LEASE OBLIGATIONS](index=29&type=section&id=NOTE%205%20%E2%80%93%20LEASE%20OBLIGATIONS) This note outlines the company's lease assets, liabilities, and associated costs | Metric | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:-------|:----------------------------|:--------------------------------| | Right-of-Use Asset | 5,627 | 5,963 | | Lease Liability | 5,669 | 5,928 | | Weighted Average Lease Term (Years) | 16.0 | 13.3 | | Weighted Average Discount Rate | 2.79% | 2.30% | - Operating lease costs increased for both the three-month and six-month periods ended June 30, 2022, compared to 2021, with total operating lease cost rising from **$129 thousand** to **$196 thousand** (QoQ) and **$264 thousand** to **$426 thousand** (YoY)[108](index=108&type=chunk) - During Q2 2022, one bank location became non-operational, leading to the transfer of its right-of-use asset to other real estate owned[106](index=106&type=chunk) [NOTE 6 – BORROWINGS](index=30&type=section&id=NOTE%206%20%E2%80%93%20BORROWINGS) This note details the company's various borrowing arrangements, including their terms and outstanding balances | Borrowing Type | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:---------------|:----------------------------|:--------------------------------| | Retail Repurchase Agreements | 52,750 | 56,006 | | Federal Home Loan Bank Advances | 80,000 | — | | Subordinated Debentures | 23,088 | 22,924 | | Subordinated Notes | 73,047 | 72,961 | | Total Subordinated Debt | 96,135 | 95,885 | - Federal Home Loan Bank advances significantly increased to **$80 million** at June 30, 2022, from zero at December 31, 2021. The maximum borrowing amount for the bank stock loan was decreased from **$40 million** to **$25 million** and renewed until February 11, 2023[115](index=115&type=chunk)[120](index=120&type=chunk) - The company has various subordinated debentures and notes with fixed-to-floating interest rates, maturing between 2030 and 2037[123](index=123&type=chunk)[124](index=124&type=chunk)[125](index=125&type=chunk)[128](index=128&type=chunk)[130](index=130&type=chunk) [NOTE 7 – STOCKHOLDERS' EQUITY](index=33&type=section&id=NOTE%207%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) This note provides information on the components of stockholders' equity, including common stock and comprehensive income | Stock Class | June 30, 2022 | December 31, 2021 | |:------------|:--------------|:------------------| | Class A common stock – issued | 20,163,989 | 20,077,059 | | Class A common stock – outstanding | 16,106,818 | 16,760,115 | | Class B common stock – issued | 234,903 | 234,903 | | Class B common stock – outstanding | — | — | - The company repurchased **740,227 shares** of common stock at an average price of **$31.89 per share** during the six months ended June 30, 2022, with **126,900 shares** remaining available under the program[141](index=141&type=chunk) | Component | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:----------|:----------------------------|:--------------------------------| | Net unrealized or unamortized gains (losses) | (102,878) | 2,369 | | Tax effect | 25,452 | (593) | | Accumulated Other Comprehensive Income (Loss) | (77,426) | 1,776 | - Accumulated other comprehensive income shifted from a gain of **$1.776 million** at December 31, 2021, to a loss of **$77.426 million** at June 30, 2022, primarily due to unrealized losses on available-for-sale securities[144](index=144&type=chunk) [NOTE 8 – REGULATORY MATTERS](index=34&type=section&id=NOTE%208%20%E2%80%93%20REGULATORY%20MATTERS) This note outlines the company's compliance with capital adequacy requirements and regulatory classifications - 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 June 30, 2022[145](index=145&type=chunk)[148](index=148&type=chunk)[150](index=150&type=chunk) | Capital Ratio | Equity Bancshares, Inc. (June 30, 2022) | Equity Bank (June 30, 2022) | |:--------------|:----------------------------------------|:----------------------------| | Total capital to risk weighted assets | 15.97% | 15.14% | | Tier 1 capital to risk weighted assets | 12.71% | 13.88% | | Common equity Tier 1 capital to risk weighted assets | 12.08% | 13.88% | | Tier 1 leverage to average assets | 9.11% | 9.94% | [NOTE 9 – EARNINGS PER SHARE](index=36&type=section&id=NOTE%209%20%E2%80%93%20EARNINGS%20PER%20SHARE) This note details the calculation of basic and diluted earnings per common share | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |:-------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Basic Earnings Per Common Share | $0.95 | $1.06 | $1.88 | $2.10 | | Diluted Earnings Per Common Share | $0.94 | $1.03 | $1.86 | $2.06 | | Weighted Average Common Shares Outstanding (Basic) | 16,106,643 | 14,355,310 | 16,426,098 | 14,405,370 | | Average Shares and Dilutive Potential Common Shares (Diluted) | 16,312,953 | 14,674,838 | 16,639,970 | 14,704,240 | - Basic and diluted earnings per share decreased for both the three-month and six-month periods ended June 30, 2022, compared to the prior year, despite an increase in net income, due to a higher weighted average common shares outstanding[152](index=152&type=chunk) [NOTE 10 – FAIR VALUE](index=36&type=section&id=NOTE%2010%20%E2%80%93%20FAIR%20VALUE) This note explains the company's fair value measurement hierarchy and the fair values of financial instruments - The Company uses a three-level hierarchy (Level 1, 2, 3) to measure and disclose fair values of financial instruments, prioritizing observable inputs. Available-for-sale securities and derivatives are primarily classified as Level 2, while individually evaluated loans and other real estate owned are Level 3 due to significant unobservable inputs[153](index=153&type=chunk)[154](index=154&type=chunk)[157](index=157&type=chunk)[158](index=158&type=chunk)[163](index=163&type=chunk)[167](index=167&type=chunk) | Asset/Liability Category | June 30, 2022 (Level 1, $ thousands) | June 30, 2022 (Level 2, $ thousands) | June 30, 2022 (Level 3, $ thousands) | |:-------------------------|:--------------------------------------|:--------------------------------------|:--------------------------------------| | Total Assets | 237,026 | 1,055,421 | — | | Total Liabilities | 50 | 3,647 | — | | Financial Instrument | Carrying Amount (June 30, 2022, $ thousands) | Estimated Fair Value (June 30, 2022, $ thousands) | |:---------------------|:---------------------------------------------|:--------------------------------------------------| | Loans, net of allowance for credit losses | 3,175,208 | 3,134,957 | | Deposits | 4,291,771 | 4,284,337 | [NOTE 11 – COMMITMENTS AND CREDIT RISK](index=41&type=section&id=NOTE%2011%20%E2%80%93%20COMMITMENTS%20AND%20CREDIT%20RISK) This note describes the company's credit extension commitments and associated credit risk management practices - The Company extends credit for commercial real estate, residential mortgages, working capital, and consumer loans, with credit risk managed through underwriting guidelines and collateral evaluation[175](index=175&type=chunk)[176](index=176&type=chunk) | Commitment Type | June 30, 2022 (Fixed Rate, $ thousands) | June 30, 2022 (Variable Rate, $ thousands) | December 31, 2021 (Fixed Rate, $ thousands) | December 31, 2021 (Variable Rate, $ thousands) | |:----------------|:----------------------------------------|:-------------------------------------------|:--------------------------------------------|:-----------------------------------------------| | Commitments to make loans | 89,350 | 168,286 | 101,923 | 173,976 | | Unused lines of credit | 114,878 | 344,260 | 106,291 | 317,249 | | Standby letters of credit | 14,138 | 9,617 | 14,656 | 5,799 | [NOTE 12 – LEGAL MATTERS](index=42&type=section&id=NOTE%2012%20%E2%80%93%20LEGAL%20MATTERS) This note provides an overview of the company's involvement in legal proceedings and potential liabilities - Equity Bank is currently involved in two class-action lawsuits filed in January and February 2022, 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 the potential loss amount[181](index=181&type=chunk)[182](index=182&type=chunk) [NOTE 13 – REVENUE RECOGNITION](index=42&type=section&id=NOTE%2013%20%E2%80%93%20REVENUE%20RECOGNITION) This note explains the company's policies for recognizing interest and non-interest income - The majority of the Company's revenue comes from interest income on financial instruments, which are outside the scope of ASC 606. Non-interest income, recognized under ASC 606, includes service charges, debit card income, investment referral income, and insurance sales commissions[183](index=183&type=chunk)[185](index=185&type=chunk) | Non-Interest Income Category | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | |:-----------------------------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------------------|:---------------------------------------------| | Service charges and fees | 2,617 | 2,169 | 5,139 | 3,765 | | Debit card income | 2,810 | 2,679 | 5,438 | 5,029 | | Mortgage banking | 428 | 848 | 990 | 1,783 | | Increase in bank-owned life insurance | 736 | 676 | 1,601 | 1,277 | | Net gain (loss) on acquisition | 540 | 663 | 540 | 585 | | Other | 2,538 | 2,065 | 4,943 | 3,356 | | Total Non-Interest Income | 9,637 | 9,100 | 18,659 | 15,812 | [NOTE 14 – BUSINESS COMBINATIONS AND BRANCH SALES](index=43&type=section&id=NOTE%2014%20%E2%80%93%20BUSINESS%20COMBINATIONS%20AND%20BRANCH%20SALES) This note details recent acquisitions and branch sales, including their financial impact - The Company completed the acquisition of American State Bancshares, Inc. (October 2021) and three Security Bank of Kansas City locations (December 2021). Additionally, it completed the sale of three Kansas branch locations to United Bank & Trust on June 24, 2022, resulting in a net gain of **$540 thousand**[187](index=187&type=chunk) | Metric | Amount ($ thousands) | |:-------|:---------------------| | Total Assets Sold | 29,762 | | Total Liabilities Assumed | 52,733 | | Total Net Assets | (22,971) | | Cash Paid | 22,431 | | Gain on Branch Sale | (540) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=45&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of Equity Bancshares, Inc.'s financial condition and results of operations for the periods ended June 30, 2022, and 2021. It covers key financial data, an overview of the business, critical accounting policies, a breakdown of operating results (net income, net interest income, provision for credit losses, non-interest income/expense, efficiency ratio, income taxes), an analysis of financial condition (loan portfolio, credit quality, nonperforming assets, deposits, borrowings), and a review of liquidity and capital resources, including reconciliations of non-GAAP financial measures [Overview](index=48&type=section&id=Overview) This section provides a high-level summary of the company's business, operations, and key financial metrics - Equity Bancshares, Inc. is a bank holding company headquartered in Wichita, Kansas, operating **66** full-service banking sites across Arkansas, Kansas, Missouri, and Oklahoma. As of June 30, 2022, the company reported consolidated total assets of **$5.00 billion**, net loans of **$3.18 billion**, total deposits of **$4.29 billion**, and total stockholders' equity of **$428.1 million**[199](index=199&type=chunk) | Metric | June 30, 2022 ($ thousands) | June 30, 2021 ($ thousands) | |:-------|:----------------------------|:----------------------------| | Net Income (QTD) | 15,259 | 15,166 | | Net Income (YTD) | 30,909 | 30,241 | | Basic EPS (QTD) | $0.95 | $1.06 | | Diluted EPS (QTD) | $0.94 | $1.03 | [Critical Accounting Policies](index=48&type=section&id=Critical%20Accounting%20Policies) This section discusses the accounting policies that require significant judgment and estimation by management - The Allowance for Credit Losses (ACL) is a critical accounting policy, representing management's estimate of expected credit losses over the loan portfolio's contractual life. This estimate is complex, relying on historical loss experience, economic conditions, asset quality trends, and other factors, with significant changes potentially leading to material impacts on financial statements[201](index=201&type=chunk)[204](index=204&type=chunk) - Goodwill is assessed annually for impairment, or more frequently if triggering events occur. As of June 30, 2022, management determined no triggering event for impairment, based on improving market conditions and strong earnings performance[205](index=205&type=chunk) [Results of Operations](index=49&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, expenses, and profitability [Net Income](index=49&type=section&id=Net%20Income) This subsection analyzes the factors contributing to the company's net income for the reporting periods - Net income for the three months ended June 30, 2022, increased by **$100 thousand** to **$15.3 million**, driven by a **$3.4 million** increase in loan interest income and **$2.3 million** in taxable securities interest income, partially offset by a **$5.6 million** increase in non-interest expense[210](index=210&type=chunk) - For the six months ended June 30, 2022, net income rose by **$668 thousand** to **$30.9 million**, primarily due to a **$12.5 million** increase in net interest income and a **$2.8 million** increase in non-interest income, partially offset by a **$10.2 million** increase in non-interest expense[210](index=210&type=chunk) [Net Interest Income and Net Interest Margin Analysis](index=49&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20Analysis) This subsection examines the components of net interest income and the factors influencing net interest margin | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |:-------|:---------------------------------|:---------------------------------| | Net Interest Income ($ thousands) | 39,566 | 34,630 | | Interest Rate Spread | 3.25% | 3.36% | | Net Interest Margin | 3.39% | 3.50% | | Total Cost of Deposits | 0.20% | 0.22% | - For the three months ended June 30, 2022, net interest income increased by **$4.9 million**, primarily due to a **$5.3 million** increase in interest income from interest-earning assets (driven by loan and taxable securities volume), partially offset by a slight increase in interest expense. Net interest margin decreased by **11 basis points** to **3.39%**[219](index=219&type=chunk)[221](index=221&type=chunk) - For the six months ended June 30, 2022, net interest income increased by **$12.5 million**, mainly from an **$12.1 million** increase in interest income on interest-earning assets (loans and taxable securities volume). The cost of interest-bearing liabilities decreased by **$320 thousand**, leading to a **2 basis point** decrease in net interest margin to **3.39%**[224](index=224&type=chunk) [Provision for Credit Losses](index=55&type=section&id=Provision%20for%20Credit%20Losses) This subsection analyzes the provision for credit losses, reflecting management's estimate of expected loan losses | Metric | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | |:-------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------------------|:---------------------------------------------| | Provision (reversal) for credit losses | 824 | (1,657) | 412 | (7,413) | | Net Charge-offs | 176 | 567 | 539 | 632 | - The Company recorded a provision for credit losses of **$824 thousand** for Q2 2022, a significant change from a **$1.7 million** reversal in Q2 2021. This provision reflects increased general reserves due to slowing prepayment speeds and perceived economic risks (inflation, supply chain, monetary policy)[227](index=227&type=chunk) - For the six months ended June 30, 2022, a provision of **$412 thousand** was recorded, contrasting with a **$7.4 million** reversal in the prior year, driven by economic risk factors[228](index=228&type=chunk) [Non-Interest Income](index=56&type=section&id=Non-Interest%20Income) This subsection details the sources and changes in the company's non-interest income | Non-Interest Income Category | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | |:-----------------------------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------------------|:---------------------------------------------| | Service charges and fees | 2,617 | 2,169 | 5,139 | 3,765 | | Debit card income | 2,810 | 2,679 | 5,438 | 5,029 | | Mortgage banking | 428 | 848 | 990 | 1,783 | | Total Non-Interest Income | 9,637 | 9,100 | 18,659 | 15,812 | - Total non-interest income increased by **$537 thousand (5.9%)** for Q2 2022 and **$2.8 million (18.0%)** for the six months ended June 30, 2022, compared to the prior year. This growth was primarily driven by increases in service charges and fees (including non-sufficient funds fees) and other non-interest income (credit card fees, derivatives), partially offset by a decrease in mortgage banking income due to reduced activity[234](index=234&type=chunk)[236](index=236&type=chunk) [Non-Interest Expense](index=58&type=section&id=Non-Interest%20Expense) This subsection analyzes the various categories of non-interest expenses and their drivers | Non-Interest Expense Category | Three Months Ended June 30, 2022 ($ thousands) | Three Months Ended June 30, 2021 ($ thousands) | Six Months Ended June 30, 2022 ($ thousands) | Six Months Ended June 30, 2021 ($ thousands) | |:------------------------------|:-----------------------------------------------|:-----------------------------------------------|:---------------------------------------------|:---------------------------------------------| | Salaries and employee benefits | 15,383 | 12,769 | 30,451 | 25,491 | | Net occupancy and equipment | 3,007 | 2,327 | 6,177 | 4,695 | | Data processing | 3,642 | 3,474 | 7,411 | 6,137 | | Other | 4,169 | 2,458 | 6,343 | 4,566 | | Total Non-Interest Expense | 31,436 | 25,806 | 60,895 | 50,687 | - Total non-interest expense increased by **$5.6 million (21.8%)** for Q2 2022 and **$10.2 million (20.1%)** for the six months ended June 30, 2022, compared to the prior year. This was primarily due to increased salaries and employee benefits, net occupancy and equipment costs, and data processing expenses, largely attributable to recent acquisitions[238](index=238&type=chunk)[239](index=239&type=chunk)[242](index=242&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk) - Other non-interest expenses saw a **$1.7 million** increase for Q2 2022 and **$1.8 million** for the six months ended June 30, 2022, mainly due to losses from limited partnerships for tax credits, partially offset by a reversal of provision for unfunded commitments[240](index=240&type=chunk)[245](index=245&type=chunk) [Efficiency Ratio](index=59&type=section&id=Efficiency%20Ratio) This subsection discusses the company's efficiency in managing expenses relative to its revenue generation | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |:-------|:---------------------------------|:---------------------------------|:-------------------------------|:-------------------------------| | Efficiency Ratio | 64.38% | 58.85% | 62.4% | 61.4% | - The efficiency ratio increased to **64.4%** for Q2 2022 (from **58.9%** in Q2 2021) and to **62.4%** for the six months ended June 30, 2022 (from **61.4%** in the prior year), primarily due to increased non-interest expense, partially offset by higher net interest income and non-interest income[198](index=198&type=chunk)[247](index=247&type=chunk)[249](index=249&type=chunk) [Income Taxes](index=60&type=section&id=Income%20Taxes) This subsection analyzes the company's effective income tax rate and its contributing factors - The effective income tax rate for Q2 2022 was **9.9%**, down from **22.6%** in Q2 2021. For the six months ended June 30, 2022, the rate was **14.6%**, compared to **22.3%** in the prior year. This reduction was due to tax benefits from restricted stock units/option exercises and federal tax credits[251](index=251&type=chunk)[252](index=252&type=chunk) [Financial Condition](index=60&type=section&id=Financial%20Condition) This section assesses the company's financial position, including assets, liabilities, and equity structure - Total assets decreased by **$135 million** to **$5.00 billion** at June 30, 2022, primarily due to decreases in cash and securities, partially offset by an increase in loans. Total liabilities decreased by **$63.0 million**, mainly from a decline in deposits, partially offset by FHLB advances. Stockholders' equity decreased by **$72.5 million** due to unrealized holding losses in the investment securities portfolio[253](index=253&type=chunk) [Loan Portfolio](index=60&type=section&id=Loan%20Portfolio) This subsection provides a detailed breakdown of the company's loan portfolio by category and changes over time | Loan Type | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | Change ($ thousands) | Change (%) | |:----------|:----------------------------|:--------------------------------|:---------------------|:-----------| | Commercial and industrial | 578,899 | 567,497 | 11,402 | 2.0% | | Commercial real estate | 1,643,068 | 1,486,148 | 156,920 | 10.6% | | Residential real estate | 578,936 | 638,087 | (59,151) | (9.3)% | | Agricultural | 124,753 | 166,975 | (42,222) | (25.3)% | | Total loans held for investment | 3,223,446 | 3,155,627 | 67,819 | 2.1% | - The total loan portfolio increased by **2.1%** to **$3.22 billion** at June 30, 2022, primarily driven by a **10.6%** increase in commercial real estate loans. Residential real estate and agricultural loans experienced decreases[255](index=255&type=chunk) - As of June 30, 2022, gross total loans (including held for sale) were **75.2%** of deposits and **64.5%** of total assets, up from **71.5%** and **61.5%** respectively at December 31, 2021[259](index=259&type=chunk) [Credit Quality Indicators](index=62&type=section&id=Credit%20Quality%20Indicators) This subsection describes the methodologies and categories used to assess the credit quality of the loan portfolio - The Company categorizes loans into risk categories (Pass, Special Mention, Substandard, Doubtful) based on borrower's ability to service debt, financial information, payment history, collateral, and economic trends. Consumer loans are generally 'pass' unless downgraded due to payment status[73](index=73&type=chunk) [Nonperforming Assets](index=62&type=section&id=Nonperforming%20Assets) This subsection reports on nonperforming loans and other assets, indicating potential credit issues | Metric | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | |:-------|:----------------------------|:--------------------------------| | Nonaccrual loans | 18,860 | 29,361 | | Accruing loans 90+ days past due | 386 | 256 | | OREO acquired through foreclosure, net | 8,838 | 7,582 | | Other repossessed assets | 8,888 | 28,799 | | Total Nonperforming Assets | 36,972 | 65,998 | | Nonperforming assets to total assets | 0.74% | 1.28% | | Nonperforming assets to total loans + OREO and repossessed assets | 1.14% | 2.07% | - Total nonperforming assets significantly decreased to **$37.0 million** at June 30, 2022, from **$66.0 million** at December 31, 2021. This reduction was primarily driven by a decrease in nonaccrual loans and other repossessed assets[273](index=273&type=chunk) [Potential Problem Loans](index=63&type=section&id=Potential%20Problem%20Loans) This subsection identifies loans that are currently performing but have characteristics that raise concerns about future repayment - Potential problem loans, which are performing but raise concerns about repayment ability, decreased to **$29.0 million** at June 30, 2022, from **$32.6 million** at December 31, 2021. These loans are assigned 'special mention' or 'substandard' grades and are evaluated for impairment[277](index=277&type=chunk)[278](index=278&type=chunk) [Allowance for Credit Losses](index=63&type=section&id=Allowance%20for%20Credit%20Losses) This subsection discusses the adequacy of the allowance for credit losses relative to the loan portfolio and non-accrual loans | Metric | June 30, 2022 | December 31, 2021 | |:-------|:--------------|:------------------| | Allowance for Credit Losses (ACL) | $48,238,000 | $48,365,000 | | ACL to total loans | 1.5% | 1.5% | | ACL to non-accrual loans | 255.8% | 91.2% | - Management believes the allowance for credit losses of **$48.2 million** at June 30, 2022, is adequate to cover expected losses. The ACL to total loans ratio remained constant at **1.5%**, while the ACL to non-accrual loans ratio significantly increased to **255.8%** from **91.2%**, indicating improved coverage of non-accrual loans[282](index=282&type=chunk)[283](index=283&type=chunk)[284](index=284&type=chunk)[285](index=285&type=chunk) [Securities](index=66&type=section&id=Securities) This subsection describes the composition and purpose of the company's investment securities portfolio - Securities constituted **25.8%** of total assets at June 30, 2022, consistent with December 31, 2021. The portfolio is used for liquidity, return, interest rate risk management, and regulatory requirements, with no securities held for trading[286](index=286&type=chunk)[287](index=287&type=chunk) | Security Type | June 30, 2022 (Fair Value, $ thousands) | December 31, 2021 (Fair Value, $ thousands) | |:--------------|:----------------------------------------|:--------------------------------------------| | U.S. Government-sponsored entities | 111,392 | 123,407 | | U.S. Treasury securities | 238,566 | 155,602 | | Mortgage-backed securities | 737,929 | 836,575 | | State and political subdivisions | 130,939 | 141,606 | | Total available-for-sale securities | 1,288,180 | 1,327,442 | - Mortgage-backed securities, primarily fixed-rate, comprised a significant portion of the portfolio, with **64.0%** having contractual final maturities over ten years at June 30, 2022, but a shorter weighted average life of **5.2 years** due to prepayments[295](index=295&type=chunk)[298](index=298&type=chunk) [Goodwill Impairment Assessment](index=69&type=section&id=Goodwill%20Impairment%20Assessment) This subsection reports on the qualitative analysis performed to assess potential impairment of goodwill - As of June 30, 2022, the Company performed an interim qualitative analysis and concluded there were no indications that goodwill was impaired[299](index=299&type=chunk) [Deposits](index=69&type=section&id=Deposits) This subsection analyzes the composition and changes in the company's deposit base | Deposit Type | June 30, 2022 ($ thousands) | December 31, 2021 ($ thousands) | Change ($ thousands) | Change (%) | |:-------------|:----------------------------|:--------------------------------|:---------------------|:-----------| | Non-interest-bearing demand | 1,194,863 | 1,244,117 | (49,254) | (4.0)% | | Interest-bearing demand and NOW accounts | 1,112,659 | 1,202,408 | (89,749) | (7.5)% | | Savings and money market | 1,332,886 | 1,319,881 | 13,005 | 1.0% | | Time | 651,363 | 653,598 | (2,235) | (0.3)% | | Total deposits | 4,291,771 | 4,420,004 | (128,233) | (2.9)% | - Total deposits decreased by **$128.2 million (2.9%)** to **$4.29 billion** at June 30, 2022, primarily due to declines in non-interest-bearing demand and interest-bearing demand/NOW accounts. Reciprocal and brokered deposits also decreased from **$373.5 million** to **$350.8 million**[303](index=303&type=chunk)[306](index=306&type=chunk) [Other Borrowed Funds](index=70&type=section&id=Other%20Borrowed%20Funds) This subsection describes the company's use of various borrowed funds to support its lending and investing activities - The Company uses short-term and long-term borrowings, including federal funds purchased, retail repurchase agreements, FHLB advances, Federal Reserve Bank discount window, a bank stock loan, and subordinated debt, to supplement deposits for funding lending and investing activities[307](index=307&type=chunk) [Liquidity and Capital Resources](index=70&type=section&id=Liquidity%20and%20Capital%20Resources) This section evaluates the company's ability to meet its financial obligations and maintain adequate capital levels [Liquidity](index=70&type=section&id=Liquidity) This subsection discusses the company's strategies and sources for managing its liquidity needs - Liquidity is managed by meeting customer demands for funds at a reasonable cost, considering on- and off-balance sheet sources and demands. Primary liquidity sources include core deposits, security/loan maturities, and amortizing portfolios, supplemented by federal funds, brokered CDs, and FHLB borrowings[309](index=309&type=chunk)[310](index=310&type=chunk)[311](index=311&type=chunk) - Cash and cash equivalents decreased by **$156.4 million** to **$103.6 million** at June 30, 2022, primarily due to **$173.1 million** used in investing activities and **$26.4 million** in financing activities, partially offset by **$43.1 million** from operating activities[314](index=314&type=chunk) [Off-Balance-Sheet Items](index=71&type=section&id=Off-Balance-Sheet%20Items) This subsection describes the company's off-balance-sheet commitments and their associated risks - The Company utilizes off-balance-sheet transactions, such as commitments to extend credit and standby/commercial letters of credit, to meet customer financing needs. These involve credit and interest rate risk, managed with the same policies as on-balance sheet instruments[315](index=315&type=chunk) [Capital Resources](index=71&type=section&id=Capital%20Resources) This subsection details the company's capital structure and compliance with regulatory capital requirements - Both Equity Bancshares, Inc. and Equity Bank are subject to federal regulatory capital requirements and maintain capital levels above minimums. Equity Bank is categorized as 'well capitalized' as of June 30, 2022, under prompt corrective action regulations[317](index=317&type=chunk)[318](index=318&type=chunk)[320](index=320&type=chunk) [Non-GAAP Financial Measures](index=71&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations and explanations for financial measures not prepared in accordance with GAAP - The Company uses non-GAAP financial measures like Tangible Book Value Per Common Share, Tangible Common Equity to Tangible Assets, and Return on Average Tangible Common Equity to provide investors with insights into financial performance exclusive of intangible assets, which management believes are important for evaluating financial institutions[325](index=325&type=chunk)[326](index=326&type=chunk)[327](index=327&type=chunk)[328](index=328&type=chunk)[330](index=330&type=chunk)[331](index=331&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) This subsection presents the calculation and trend of tangible book value per common and diluted share | Metric | June 30, 2022 | December 31, 2021 | |:-------|:--------------|:------------------| | Book value per common share | $26.58 | $29.87 | | Tangible book value per common share | $22.42 | $25.65 | | Tangible book value per diluted common share | $22.17 | $25.22 | - Tangible book value per common share decreased to **$22.42** at June 30, 2022, from **$25.65** at December 31, 2021, reflecting the impact of intangible assets on overall book value[327](index=327&type=chunk) [Tangible Common Equity to Tangible Assets](index=72&type=section&id=Tangible%20Common%20Equity%20to%20Tangible%20Assets) This subsection analyzes the ratio of tangible common equity to tangible assets, indicating capital strength | Metric | June 30, 2022 | December 31, 2021 | |:-------|:--------------|:------------------| | Equity to assets | 8.56% | 9.74% | | Tangible common equity to tangible assets | 7.32% | 8.48% | - Tangible common equity to tangible assets decreased to **7.32%** at June 30, 2022, from **8.48%** at December 31, 2021, indicating a lower proportion of tangible equity supporting tangible assets[330](index=330&type=chunk) [Return on Average Tangible Common Equity](index=73&type=section&id=Return%20on%20Average%20Tangible%20Common%20Equity) This subsection presents the annualized return on average tangible common equity, a key profitability metric | Metric | June 30, 2022 | December 31, 2021 | |:-------|:--------------|:------------------| | Return on total average stockholders' equity (ROAE) annualized | 13.99% | 7.37% | | Return on average tangible common equity (ROATCE) annualized | 17.60% | 8.97% | - Annualized Return on Average Tangible Common Equity (ROATCE) significantly increased to **17.60%** at June 30, 2022, from **8.97%** at December 31, 2021, reflecting improved earnings quality on tangible common equity[332](index=332&type=chunk) [Efficiency Ratio](index=73&type=section&id=Efficiency%20Ratio) This subsection provides the non-GAAP efficiency ratio, illustrating operational cost management | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | |:-------|:---------------------------------|:---------------------------------| | Efficiency Ratio | 64.38% | 58.85% | | Non-interest expense to net interest income plus non-interest income | 63.89% | 59.01% | - The non-GAAP efficiency ratio increased to **64.38%** for the three months ended June 30, 2022, from **58.85%** in the prior year, indicating a less efficient allocation of resources to generate income[336](index=336&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section describes the company's exposure to market risks, primarily interest rate risk, and its management strategies [Market Risk](index=74&type=section&id=Market%20Risk) This subsection details the company's primary market risk, interest rate volatility, and its impact on financial performance - The primary market risk is interest rate volatility, managed by the Asset Liability Committee (ALCO) through balance sheet structuring and simulation analysis to monitor Net Interest Income (NII) and Economic Value of Equity (EVE) sensitivity[338](index=338&type=chunk)[340](index=340&type=chunk)[343](index=343&type=chunk) | Change in prevailing interest rates | Impact on Net Interest Income (June 30, 2022) | Impact on Net Interest Income (December 31, 2021) | |:------------------------------------|:----------------------------------------------|:--------------------------------------------------| | +300 basis points | (4.4)% | (4.4)% | | +200 basis points | (2.7)% | (2.4)% | | +100 basis points | (1.2)% | (1.0)% | | -100 basis points | (3.6)% | (4.4)% | | Change in prevailing interest rates | Impact on Economic Value of Equity (June 30, 2022) | Impact on Economic Value of Equity (December 31, 2021) | |:------------------------------------|:---------------------------------------------------|:-------------------------------------------------------| | +300 basis points | (14.0)% | (2.8)% | | +200 basis points | (8.9)% | 0.7% | | +100 basis points | (4.6)% | 2.7% | | -100 basis points | 0.5% | (14.8)% | - The Company is in a liability-sensitive position, leading to negative impacts on NII in rising rate scenarios due to assumed migration of non-term deposits to higher-rate term deposits and fixed-rate assets not repricing. In falling rate scenarios, NII is negatively impacted by decreasing investment income from mortgage-backed securities and faster prepayment of fixed-rate loans[344](index=344&type=chunk)[345](index=345&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of the company's disclosure controls and internal control over financial reporting - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of June 30, 2022, providing reasonable assurance that required information is accumulated, communicated, processed, and reported timely[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](index=73&type=section&id=Part%20II%E2%80%94Other%20Information) This section provides additional information not covered in Part I, including updates on legal proceedings, confirmation of no material changes to risk factors, details on common stock repurchases, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) This section provides an update on the company's ongoing legal matters - The Company is party to various litigation matters in the ordinary course of business, with details provided in Note 12 of the Condensed Notes to Interim Consolidated Financial Statements[355](index=355&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) This section confirms whether there have been any material changes to the company's previously disclosed risk factors - There have been no material changes to the Company's risk factors previously disclosed in its Annual Report on Form 10-K filed on March 9, 2022[356](index=356&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on any unregistered sales of equity securities and the application of their proceeds [Repurchase of Common Stock](index=77&type=section&id=Repurchase%20of%20Common%20Stock) This subsection details the company's common stock repurchase program and recent activity - The Board of Directors authorized a repurchase program for up to **1,000,000 shares** of common stock, concluding October 28, 2022. During Q2 2022, the Company repurchased **355,844 shares** at an average price of **$31.54 per share**, with **126,900 shares** remaining available for repurchase[357](index=357&type=chunk)[359](index=359&type=chunk) [Item 3. Defaults Upon Senior Securities](index=77&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms whether there have been any defaults on senior securities - There were no defaults upon senior securities reported[360](index=360&type=chunk) [Item 4. Mine Safety Disclosures](index=77&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section addresses mine safety disclosures, if applicable to the company's operations - Mine safety disclosures are not applicable to the Company[360](index=360&type=chunk) [Item 5. Other Information](index=77&type=section&id=Item%205.%20Other%20Information) This section includes any other material information not covered elsewhere in the report - No other information was reported in this section[361](index=361&type=chunk) [Item 6. Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the report, including certifications and interactive data files - The report includes various exhibits, such as certifications of the CEO and CFO (pursuant to Rules 13a-14(a) and 18 U.S.C. Section 1350) and Inline XBRL documents (Instance, Schema, Calculation, Definition, Label, Presentation Linkbase Documents, and Cover Page Interactive Data File)[361](index=361&type=chunk)[363](index=363&type=chunk)

Exhibit 99.2 Second Quarter Earnings Presentation 7/20/2022 Forward Looking Statements This press release contains "forward‐looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward‐looking statements reflect the current views of Equity's management with respect to, among other things, future events and Equity's financial performance. These statements are often, but not always, made throu ...

Equity Bancshares, Inc. (NYSE:EQBK) Q2 2022 Earnings Conference Call July 20, 2022 10:00 AM ET Company Participants Chris Navratil - Investor Relations Brad Elliott - Chairman and Chief Executive Officer Eric Newell - Chief Financial Officer Greg Kossover - Chief Operating Officer John Creech - Chief Credit Officer Craig Anderson - President Conference Call Participants Terry McEvoy - Stephens Jeff Rulis - D.A. Davidson Andrew Liesch - Piper Chandler Damon DelMonte - KBW Operator Thank you for standing by a ...

[PART I FINANCIAL INFORMATION](index=5&type=section&id=Part%20I%20Financial%20Information) This section provides the unaudited interim consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed interim consolidated financial statements for Equity Bancshares, Inc. and its subsidiaries, including balance sheets, income statements, comprehensive income, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, securities, loans, derivatives, leases, borrowings, equity, regulatory matters, earnings per share, fair value measurements, commitments, legal proceedings, revenue recognition, and recent business combinations [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show a slight decrease in total assets and liabilities from December 31, 2021, to March 31, 2022, primarily driven by a reduction in cash and cash equivalents, partially offset by an increase in loans, net of allowance for credit losses; total stockholders' equity also decreased due to unrealized losses on available-for-sale securities | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | |:---|:---|:---| | Total assets | $5,078,623 | $5,137,631 | | Cash and cash equivalents | $90,050 | $259,954 | | Loans, net of allowance for credit losses | $3,194,987 | $3,107,262 | | Total liabilities | $4,626,608 | $4,637,000 | | Total deposits | $4,379,670 | $4,420,004 | | Total stockholders' equity | $452,015 | $500,631 | - Total assets decreased by **$59.0 million** from December 31, 2021, to March 31, 2022, primarily due to a **$169.4 million** decrease in cash and due from banks, partially offset by an **$87.7 million** increase in loans, net of allowance for credit losses, and a **$25.5 million** increase in securities[227](index=227&type=chunk) - Total stockholders' equity decreased by **$48.6 million**, from **$500.6 million** at December 31, 2021, to **$452.0 million** at March 31, 2022, mainly due to unrealized holding losses, net of tax, in the investment securities portfolio[227](index=227&type=chunk) [Consolidated Statements of Income](index=6&type=section&id=Consolidated%20Statements%20of%20Income) Net income for the three months ended March 31, 2022, increased slightly compared to the same period in 2021, driven by higher net interest income and non-interest income, despite a lower reversal of provision for credit losses and increased non-interest expenses | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | |:---|:---|:---| | Total interest and dividend income | $42,652 | $35,812 | | Total interest expense | $3,363 | $4,053 | | Net interest income | $39,289 | $31,759 | | Provision (reversal) for credit losses | $(412) | $(5,756) | | Total non-interest income | $9,022 | $6,712 | | Total non-interest expense | $29,459 | $24,881 | | Net income | $15,650 | $15,075 | | Basic earnings per share | $0.94 | $1.04 | | Diluted earnings per share | $0.93 | $1.02 | - Net income increased by **$575 thousand**, from **$15.1 million** in Q1 2021 to **$15.7 million** in Q1 2022, driven by a **$5.3 million** increase in loan interest income, a **$1.6 million** increase in taxable securities interest income, and a **$1.1 million** increase in other non-interest income, partially offset by a lower reversal of provision for credit loss (**$5.3 million** decrease) and a **$4.6 million** increase in non-interest expense[196](index=196&type=chunk) [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The company reported a comprehensive loss for the three months ended March 31, 2022, primarily due to significant unrealized holding losses on available-for-sale securities, net of tax effects, which outweighed the net income | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | |:---|:---|:---| | Net income | $15,650 | $15,075 | | Unrealized holding gains (losses) on available-for-sale securities | $(69,339) | $(10,369) | | Other comprehensive income (loss), net of tax | $(51,788) | $(7,762) | | Comprehensive income (loss) | $(36,138) | $7,313 | [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity decreased from January 1, 2022, to March 31, 2022, primarily due to significant other comprehensive losses, net of tax effects, related to available-for-sale securities, and treasury stock purchases, partially offset by net income and stock-based compensation | Equity Component | Balance at January 1, 2022 (in thousands) | Changes during Q1 2022 (in thousands) | Balance at March 31, 2022 (in thousands) | |:---|:---|:---|:---|\ | Common Stock | $203 | $1 | $204 | | Additional Paid-In Capital | $478,862 | $1,244 | $480,106 | | Retained Earnings | $88,324 | $14,308 | $102,632 | | Accumulated Other Comprehensive Income (Loss), net of tax | $1,776 | $(51,788) | $(50,012) | | Treasury Stock | $(68,534) | $(12,381) | $(80,915) | | Total Stockholders' Equity | $500,631 | $(48,616) | $452,015 | - The decrease in total stockholders' equity was principally due to unrealized holding losses, net of tax, in the investment securities portfolio[227](index=227&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents significantly decreased during the three months ended March 31, 2022, primarily due to substantial net cash used in investing activities, particularly for purchases of available-for-sale securities and net changes in loans, and net cash used in financing activities, partially offset by net cash provided by operating activities | Cash Flow Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | |:---|:---|:---| | Net cash provided by (used in) operating activities | $7,804 | $23,726 | | Net cash provided by (used in) investing activities | $(165,912) | $(352,958) | | Net cash provided by (used in) financing activities | $(11,796) | $185,222 | | Net change in cash and cash equivalents | $(169,904) | $(144,010) | | Ending cash and cash equivalents | $90,050 | $136,688 | - The decrease in cash and cash equivalents is driven primarily by **$165.9 million** net cash used in investing activities and **$11.8 million** used in financing activities, partially offset by **$7.8 million** provided by operating activities[288](index=288&type=chunk) [Condensed Notes to Interim Consolidated Financial Statements](index=11&type=section&id=Condensed%20Notes%20to%20Interim%20Consolidated%20Financial%20Statements) These notes provide detailed disclosures supporting the interim consolidated financial statements, covering the basis of presentation, significant accounting policies, specific financial instrument details (securities, loans, derivatives, leases, borrowings), equity structure, regulatory compliance, earnings per share calculations, fair value measurements, credit commitments, legal contingencies, revenue recognition practices, and recent M&A activities [NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=11&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 and SEC guidance, requiring management estimates; the Company has evaluated recent accounting pronouncements (ASU 2020-04, ASU 2021-01, ASU 2022-01, ASU 2022-02) related to reference rate reform, derivatives, and credit losses, and does not expect a material financial impact from their adoption, though future loan disclosures will be affected - The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles ("GAAP") for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission[32](index=32&type=chunk) - The Company is currently evaluating ASU 2022-01 (Derivatives and Hedging) but does not expect it will have a material financial impact on its financial condition, results of operations and cash flows[37](index=37&type=chunk) - The Company will not be early adopting ASU 2022-02 (Financial Instruments – Credit Losses) and does not expect the guidance to have a material financial impact on its financial condition, results of operations and cash flows, but it will impact future loan disclosures[38](index=38&type=chunk) [NOTE 2 – SECURITIES](index=12&type=section&id=NOTE%202%20%E2%80%93%20SECURITIES) The Company's available-for-sale securities portfolio increased in amortized cost but decreased in fair value from December 31, 2021, to March 31, 2022, resulting in a significant increase in gross unrealized losses, primarily due to changes in interest rates; the majority of these securities are expected to recover as they approach maturity | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | |:---|:---|:---| | Amortized Cost of AFS Securities | $1,419,885 | $1,325,015 | | Fair Value of AFS Securities | $1,352,894 | $1,327,442 | | Gross Unrealized Gains | $2,095 | $15,296 | | Gross Unrealized Losses | $(69,086) | $(12,869) | - As of March 31, 2022, the Company held **413** available-for-sale securities in an unrealized loss position[45](index=45&type=chunk) - Unrealized losses on securities have not been recognized into income because the security issuers are of high credit quality, management does not intend to sell, and the decline in fair value is largely due to changes in interest rates, with fair value expected to recover as securities approach maturity[46](index=46&type=chunk) [NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES](index=14&type=section&id=NOTE%203%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) Total loans increased from December 31, 2021, to March 31, 2022, with commercial real estate and commercial and industrial loans showing growth; the allowance for credit losses decreased slightly, with a reversal of provision for credit losses in Q1 2022; nonaccrual loans decreased, and the company had no CARES Act deferred loans at March 31, 2022, compared to $36.3 million at December 31, 2021 | Loan Category | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | |:---|:---|:---| | Commercial real estate | $1,552,134 | $1,486,148 | | Commercial and industrial | $629,181 | $567,497 | | Residential real estate | $613,928 | $638,087 | | Total loans | $3,242,577 | $3,155,627 | | Allowance for credit losses | $(47,590) | $(48,365) | | Net loans | $3,194,987 | $3,107,262 | | Allowance for Credit Losses Activity | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | |:---|:---|:---| | Beginning balance | $48,365 | $33,709 (prior to ASC 326 adoption) | | Provision for credit losses (reversal) | $(412) | $(5,756) | | Loans charged-off | $(534) | $(291) | | Recoveries | $171 | $226 | | Total ending allowance balance | $47,590 | $55,525 | - Nonaccrual loans decreased from **$29.36 million** at December 31, 2021, to **$20.70 million** at March 31, 2022[247](index=247&type=chunk) - As of March 31, 2022, the Company had no loans deferred under the CARES Act, compared to **20** deferrals totaling **$36.3 million** at December 31, 2021[81](index=81&type=chunk)[82](index=82&type=chunk) [NOTE 4 – DERIVATIVE FINANCIAL INSTRUMENTS](index=22&type=section&id=NOTE%204%20%E2%80%93%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) The Company uses interest rate swaps to manage interest rate risk, classifying them as fair value hedges, cash flow hedges, or stand-alone derivatives; notional amounts for all derivatives totaled $180.5 million at March 31, 2022, with net derivative assets of $3.7 million; the company recorded net gains of $713 thousand on derivatives and hedging activities for the three months ended March 31, 2022 | Derivative Type | Notional Amount (March 31, 2022, in thousands) | Fair Value (March 31, 2022, in thousands) | |:---|:---|:---| | Fair Value Hedges | $26,164 | $1,116 (assets) | | Cash Flow Hedges | $7,500 | $1,184 (assets) | | Stand-Alone Derivatives | $146,849 | $1,419 (assets), $1,499 (liabilities) | | Total Notional Amount | $180,513 | | | Total Derivative Assets | | $3,719 | | Total Derivative Liabilities | | $1,499 | - The Company recorded net gains of **$713 thousand** on derivatives and hedging activities for the three months ended March 31, 2022, compared to **$350 thousand** in the prior year[95](index=95&type=chunk) [NOTE 5 – LEASE OBLIGATIONS](index=24&type=section&id=NOTE%205%20%E2%80%93%20LEASE%20OBLIGATIONS) The Company has operating lease obligations primarily for land and buildings, with a right-of-use asset and lease liability of approximately $5.8 million at March 31, 2022; operating lease costs for the three months ended March 31, 2022, were $220 thousand, an increase from the prior year | Lease Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | |:---|:---|:---| | Right-of-Use Asset | $5,805 | $5,963 | | Lease Liability | $5,773 | $5,928 | | Weighted Average Lease Term | 13.3 years | 13.3 years | | Weighted Average Discount Rate | 2.31% | 2.30% | | Operating Lease Cost | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | |:---|:---|:---| | Total operating lease cost | $220 | $135 | [NOTE 6 – BORROWINGS](index=25&type=section&id=NOTE%206%20%E2%80%93%20BORROWINGS) The Company's borrowings include retail repurchase agreements, Federal Home Loan Bank (FHLB) advances, and subordinated debt; FHLB advances increased significantly to $50 million at March 31, 2022, from zero at December 31, 2021; subordinated debt remained stable at approximately $96 million; the bank stock loan facility was renewed with a reduced maximum borrowing amount | Borrowing Type | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | |:---|:---|:---| | Retail repurchase agreements | $48,199 | $56,006 | | Federal Home Loan Bank advances | $50,000 | $0 | | Subordinated debt | $96,010 | $95,885 | - The bank stock loan facility was renewed on February 11, 2022, with the maximum borrowing amount decreased from **$40 million** to **$25 million**, and the interest rate floor reduced to **3.25%**[113](index=113&type=chunk) | Future Principal Repayments (March 31, 2022, in thousands) | |:---|\ | Due in one year or less: $98,199 | | Due after one year through two years: $0 | | Due after two years through three years: $0 | | Due after three years through four years: $0 | | Due after four years through five years: $0 | | Thereafter: $103,352 | | Total: $201,551 | [NOTE 7 – STOCKHOLDERS' EQUITY](index=28&type=section&id=NOTE%207%20%E2%80%93%20STOCKHOLDERS'%20EQUITY) The Company's Class A common stock outstanding decreased from December 31, 2021, to March 31, 2022, primarily due to treasury stock repurchases; accumulated other comprehensive income (loss) shifted from a gain to a significant loss, mainly driven by unrealized losses on available-for-sale securities | Common Stock Shares | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Class A common stock – issued | 20,156,293 | 20,077,059 | | Class A common stock – held in treasury | (3,701,327) | (3,316,944) | | Class A common stock – outstanding | 16,454,966 | 16,760,115 | - During the three months ended March 31, 2022, the Company repurchased **384,383** shares of its outstanding common stock at an average price of **$32.21** per share, with **482,744** shares remaining available under the program[134](index=134&type=chunk) | Accumulated Other Comprehensive Income (Loss) Components (in thousands) | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Net unrealized or unamortized gains (losses) on Available-for-Sale Securities | $(66,991) | $2,427 | | Net unrealized or unamortized gains (losses) on Cash Flow Hedges | $540 | $(58) | | Total Accumulated Other Comprehensive Income (Loss), net of tax | $(50,012) | $1,776 | [NOTE 8 – REGULATORY MATTERS](index=29&type=section&id=NOTE%208%20%E2%80%93%20REGULATORY%20MATTERS) Both Equity Bancshares, Inc. and Equity Bank met all capital adequacy requirements at March 31, 2022, with Equity Bank categorized as 'well capitalized' under prompt corrective action regulations; the capital ratios generally decreased slightly from December 31, 2021, to March 31, 2022, but remained well above minimum requirements - Management believes as of March 31, 2022, the Company and Bank meet all capital adequacy requirements to which they are subject[138](index=138&type=chunk) - As of March 31, 2022, Equity Bank was categorized as 'well capitalized' under the regulatory framework for prompt corrective action[141](index=141&type=chunk) | Capital Ratio | Equity Bancshares, Inc. (March 31, 2022) | Equity Bancshares, Inc. (December 31, 2021) | Equity Bank (March 31, 2022) | Equity Bank (December 31, 2021) | |:---|:---|:---|:---|:---|\ | Total capital to risk weighted assets | 15.88% | 15.96% | 15.15% | 15.28% | | Tier 1 capital to risk weighted assets | 12.62% | 12.67% | 13.90% | 14.02% | | Common equity Tier 1 capital to risk weighted assets | 11.98% | 12.03% | 13.90% | 14.02% | | Tier 1 leverage to average assets | 9.06% | 9.09% | 9.98% | 10.07% | [NOTE 9 – EARNINGS PER SHARE](index=31&type=section&id=NOTE%209%20%E2%80%93%20EARNINGS%20PER%20SHARE) Basic and diluted earnings per share decreased for the three months ended March 31, 2022, compared to the same period in 2021, despite an increase in net income, primarily due to a higher weighted average common shares outstanding | EPS Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |:---|:---|:---| | Net income allocable to common stockholders (in thousands) | $15,650 | $15,075 | | Weighted average common shares outstanding | 16,647,851 | 14,455,986 | | Basic earnings per common share | $0.94 | $1.04 | | Diluted earnings per common share | $0.93 | $1.02 | - The decrease in basic and diluted EPS is despite an increase in net income, primarily due to a higher weighted average common shares outstanding in 2022[145](index=145&type=chunk) [NOTE 10 – FAIR VALUE](index=31&type=section&id=NOTE%2010%20%E2%80%93%20FAIR%20VALUE) The Company measures and discloses fair values of financial instruments using a three-level hierarchy based on input observability; recurring fair value measurements primarily include available-for-sale securities and derivatives, mostly classified as Level 2; non-recurring measurements for impaired loans and OREO are typically Level 3, relying on significant unobservable inputs like real estate appraisals - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (significant other observable inputs), and Level 3 (significant unobservable inputs)[146](index=146&type=chunk) - Available-for-sale securities and derivatives are measured at fair value on a recurring basis, with most AFS securities classified as Level 2 and U.S. Treasury securities as Level 1, while derivatives are classified as Level 2[150](index=150&type=chunk)[151](index=151&type=chunk) - Individually evaluated loans and other real estate owned are measured at fair value on a non-recurring basis when impaired, typically classified as Level 3 due to reliance on third-party appraisals and significant judgment involving unobservable inputs[155](index=155&type=chunk)[156](index=156&type=chunk)[160](index=160&type=chunk) [NOTE 11 – COMMITMENTS AND CREDIT RISK](index=36&type=section&id=NOTE%2011%20%E2%80%93%20COMMITMENTS%20AND%20CREDIT%20RISK) The Company extends credit through various loan types and offers off-balance-sheet commitments, including commitments to originate loans and standby letters of credit; total commitments to make loans (fixed and variable rate) and unused lines of credit increased from December 31, 2021, to March 31, 2022, indicating continued lending activity | Commitment Type (in thousands) | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Commitments to make loans (Fixed Rate) | $95,136 | $101,923 | | Commitments to make loans (Variable Rate) | $176,994 | $173,976 | | Unused lines of credit | $426,635 | $423,540 | | Standby letters of credit | $20,490 | $20,455 | - The Company's exposure to credit loss from these commitments is represented by their contractual amounts, and the same credit policies and procedures are used as for on-balance sheet instruments[291](index=291&type=chunk) [NOTE 12 – LEGAL MATTERS](index=37&type=section&id=NOTE%2012%20%E2%80%93%20LEGAL%20MATTERS) Equity Bank is currently involved in two class action lawsuits filed in January and February 2022, 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 the potential loss amount - Equity Bank is party to a lawsuit filed on January 28, 2022, in Sedgwick County Kansas District Court alleging improperly collected overdraft fees, seeking class action certification[173](index=173&type=chunk) - Another lawsuit was filed on February 2, 2022, in Jackson County, Missouri District Court, also alleging improperly collected overdraft fees and seeking class action certification[174](index=174&type=chunk) - The Company believes both lawsuits are without merit and intends to vigorously defend against the claims, but is unable to reasonably estimate the loss amount at this time[173](index=173&type=chunk)[174](index=174&type=chunk) [NOTE 13 – REVENUE RECOGNITION](index=37&type=section&id=NOTE%2013%20%E2%80%93%20REVENUE%20RECOGNITION) The majority of the Company's revenue comes from interest income, which is outside the scope of ASC 606; non-interest income, recognized under ASC 606, increased by $2.3 million (34.4%) for the three months ended March 31, 2022, compared to the prior year, driven by higher service charges and fees, debit card income, and other non-interest income - The majority of the Company's revenues come from interest income on financial instruments, which are outside the scope of ASC 606[175](index=175&type=chunk) | Non-Interest Income Component (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | % Change | |:---|:---|:---|:---|:---|\ | Service charges and fees | $2,522 | $1,596 | $926 | 58.0% | | Debit card income | $2,628 | $2,350 | $278 | 11.8% | | Mortgage banking | $562 | $935 | $(373) | (39.9)% | | Increase in value of bank-owned life insurance | $865 | $601 | $264 | 43.9% | | Other non-interest income | $2,405 | $1,291 | $1,114 | 86.3% | | Total non-interest income | $9,022 | $6,712 | $2,310 | 34.4% | - The increase in other non-interest income was due to increases in credit card fees (**$135 thousand**), loan repurchase obligation reversal (**$502 thousand**), and derivatives not designated as hedging relationships (**$325 thousand**)[214](index=214&type=chunk) [NOTE 14 – BUSINESS COMBINATIONS AND BRANCH SALES](index=38&type=section&id=NOTE%2014%20%E2%80%93%20BUSINESS%20COMBINATIONS%20AND%20BRANCH%20SALES) The Company completed two acquisitions in Q4 2021: American State Bancshares, Inc. (October 2021) and three Security Bank of Kansas City branches (December 2021), incurring related costs in Q1 2022; additionally, the Company announced a definitive agreement to sell three Equity Bank branches to United Bank & Trust, scheduled to close in June 2022 - The Company acquired American State Bancshares, Inc. on October 1, 2021, incurring **$187 thousand** in related costs during Q1 2022[178](index=178&type=chunk) - The Company acquired three bank locations from Security Bank of Kansas City on December 3, 2021, incurring **$136 thousand** in related costs during Q1 2022[178](index=178&type=chunk) - The Company announced an agreement to sell three Equity Bank branches (Concordia, Belleville, and Clyde, Kansas) to United Bank & Trust, with the transaction scheduled to close on June 24, 2022[178](index=178&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of the Company's financial condition and results of operations, including an overview of its business, critical accounting policies, a comprehensive review of operating results (net income, net interest income, non-interest income/expense, taxes), an analysis of financial position (loan portfolio, credit quality, deposits, securities), and a discussion of liquidity and capital resources, along with reconciliations of non-GAAP financial measures [Overview](index=41&type=section&id=Overview) Equity Bancshares, Inc. is a bank holding company operating 69 full-service banking sites across Arkansas, Kansas, Missouri, and Oklahoma; as of March 31, 2022, the Company reported $5.08 billion in total assets, $3.19 billion in net loans, $4.38 billion in total deposits, and $452.0 million in total stockholders' equity, with net income of $15.7 million for the three months ended March 31, 2022 - Equity Bancshares, Inc. operates **69** full-service banking sites in Arkansas, Kansas, Missouri, and Oklahoma[185](index=185&type=chunk) | Metric | As of March 31, 2022 (in thousands) | |:---|:---|\ | Consolidated total assets | $5,080,000 | | Total loans held for investment, net of allowance | $3,190,000 | | Total deposits | $4,380,000 | | Total stockholders' equity | $452,000 | | Net income (three months ended) | $15,700 | | Net income (three months ended March 31, 2021) | $15,100 | [Critical Accounting Policies](index=41&type=section&id=Critical%20Accounting%20Policies) The Company's critical accounting policies involve significant management judgments and assumptions, particularly for the Allowance for Credit Losses (ACL) and Goodwill; the ACL is an estimate of expected credit losses over the loan portfolio's life, influenced by economic conditions and historical experience; Goodwill is assessed annually for impairment, with management determining no triggering event occurred in Q1 2022 - The Allowance for Credit Losses (ACL) represents management's estimate of all expected credit losses over the expected contractual life of the loan portfolio, based on historical loss experience, economic conditions, asset quality trends, and other factors[187](index=187&type=chunk) - Goodwill results from business acquisitions and is assessed at least annually for impairment; for Q1 2022, management determined there was no evidence of a triggering event, thus a quantitative assessment was not necessary[191](index=191&type=chunk) - Significant changes in circumstances related to loan quality or economic conditions could materially impact the ACL, and the CECL methodology's life-of-loan perspective can exacerbate periodic differences[188](index=188&type=chunk)[190](index=190&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) The Company's operating results for Q1 2022 showed an increase in net income, driven by higher net interest income and non-interest income, despite a lower reversal of credit loss provision and increased non-interest expenses; net interest margin improved, and the efficiency ratio decreased, indicating better operational efficiency [Net Income](index=42&type=section&id=Net%20Income) Net income for the three months ended March 31, 2022, increased to $15.7 million, up $575 thousand from $15.1 million in the prior year; this growth was primarily due to increased loan and taxable securities interest income and other non-interest income, partially offset by a smaller credit loss provision reversal and higher non-interest expenses | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | |:---|:---|:---| | Net income | $15,650 | $15,075 | | Increase in loan interest income | $5,300 | N/A | | Increase in taxable securities interest income | $1,600 | N/A | | Decrease in provision for credit loss reversal | $(5,300) | N/A | | Increase in non-interest expense | $4,600 | N/A | [Net Interest Income and Net Interest Margin Analysis](index=42&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin%20Analysis) Net interest income increased by $7.5 million to $39.3 million for Q1 2022 compared to Q1 2021, driven by higher loan and taxable securities volumes; the net interest margin improved by 7 basis points to 3.38%, and the net interest spread increased by 11 basis points to 3.26%, primarily due to lower costs of interest-bearing deposits and subordinated debt | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |:---|:---|:---| | Net interest income (in thousands) | $39,289 | $31,759 | | Net interest margin (annualized) | 3.38% | 3.31% | | Interest rate spread | 3.26% | 3.15% | | Yield on loans (annualized) | 4.61% | 4.59% | | Cost of interest-bearing deposits (annualized) | 0.22% | 0.36% | - Interest income on interest-earning assets increased by **$6.8 million**, with **$4.5 million** from increased loan volume and **$1.9 million** from increased taxable securities volume[204](index=204&type=chunk) - The reduction in interest expense on deposits was primarily due to a **49 basis point** decrease in the cost of certificates of deposits (from **0.96%** to **0.47%**) and a general decrease in other interest-bearing deposit costs, partially offset by volume increases[204](index=204&type=chunk) [Provision for Credit Losses](index=45&type=section&id=Provision%20for%20Credit%20Losses) The Company recorded a reversal of provision for credit losses of $412 thousand for Q1 2022, significantly lower than the $5.8 million reversal in Q1 2021; this was due to a release of reserves on specifically analyzed loans, partially offset by increased perceived economic risk; net charge-offs increased to $363 thousand in Q1 2022 from $65 thousand in Q1 2021 | Metric | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | |:---|:---|:---| | Reversal of provision for credit losses | $(412) | $(5,756) | | Net charge-offs | $363 | $65 | | Gross charge-offs | $534 | $291 | | Gross recoveries | $171 | $226 | - The Q1 2022 provision reversal was largely due to the release of reserves on specifically analyzed loans, partially offset by increased perceived economic risk from recent inflation, geopolitical uncertainty, and monetary policy impacts[209](index=209&type=chunk) - The large reversal in Q1 2021 was primarily due to improvements in economic inputs to the CECL model and historical loss experience[209](index=209&type=chunk) [Non-Interest Income](index=45&type=section&id=Non-Interest%20Income) Total non-interest income increased by $2.3 million (34.4%) to $9.0 million for Q1 2022 compared to Q1 2021; this growth was primarily driven by increases in service charges and fees ($926 thousand), debit card income ($278 thousand), and other non-interest income ($968 thousand), reflecting management's focus on relationship development and product utilization | Non-Interest Income Component (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | % Change | |:---|:---|:---|:---|:---|\ | Service charges and fees | $2,522 | $1,596 | $926 | 58.0% | | Debit card income | $2,628 | $2,350 | $278 | 11.8% | | Mortgage banking | $562 | $935 | $(373) | (39.9)% | | Increase in value of bank-owned life insurance | $865 | $601 | $264 | 43.9% | | Other non-interest income | $2,405 | $1,291 | $1,114 | 86.3% | | Total non-interest income | $9,022 | $6,712 | $2,310 | 34.4% | - Increases in service charges and fees included **$369 thousand** from non-sufficient funds fees and **$154 thousand** from statement fees[213](index=213&type=chunk) - Other non-interest income growth was attributed to increases in credit card fees (**$135 thousand**), loan repurchase obligation reversal (**$502 thousand**), and derivatives not designated as hedging relationships (**$325 thousand**)[214](index=214&type=chunk) [Non-Interest Expense](index=46&type=section&id=Non-Interest%20Expense) Total non-interest expense increased by $4.6 million (18.4%) to $29.5 million for Q1 2022 compared to Q1 2021; this rise was primarily driven by a $2.3 million increase in salaries and employee benefits due to staff additions from recent acquisitions, and a $1.1 million increase in data processing costs related to additional accounts from mergers | Non-Interest Expense Component (in thousands) | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | Change | % Change | |:---|:---|:---|:---|:---|\ | Salaries and employee benefits | $15,068 | $12,722 | $2,346 | 18.4% | | Net occupancy and equipment | $3,170 | $2,368 | $802 | 33.9% | | Data processing | $3,769 | $2,663 | $1,106 | 41.5% | | Professional fees | $1,171 | $1,073 | $98 | 9.1% | | Advertising and business development | $976 | $682 | $294 | 43.1% | | Total non-interest expense | $29,459 | $24,881 | $4,578 | 18.4% | - The increase in salaries and employee benefits was primarily due to the addition of staff related to the ASBI acquisition in October 2021 and the Security acquisition in December 2021[217](index=217&type=chunk) - Data processing costs increased due to additional accounts from the ASBI and Security mergers, covering debit card processing, software licensing, and online banking services[218](index=218&type=chunk) [Efficiency Ratio](index=46&type=section&id=Efficiency%20Ratio) The efficiency ratio, a non-GAAP measure, improved to 60.4% for Q1 2022 from 64.2% in Q1 2021; this decrease indicates improved operational efficiency, primarily due to increases in net interest income and non-interest income, partially offsetting the rise in non-interest expense | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |:---|:---|:---| | Efficiency Ratio (Non-GAAP) | 60.36% | 64.18% | | Non-interest expense to net interest income plus non-interest income (GAAP) | 60.98% | 64.67% | - The decrease in the efficiency ratio was primarily due to increases in net interest income and non-interest income, partially offset by an increase in non-interest expense[224](index=224&type=chunk) [Income Taxes](index=47&type=section&id=Income%20Taxes) The effective income tax rate for Q1 2022 was 18.8%, a decrease from 22.1% in Q1 2021; this lower rate was influenced by a tax benefit of $96 thousand from stock-based compensation and $941 thousand from federal tax credits recognized during the period | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |:---|:---|:---| | Provision (benefit) for income taxes (in thousands) | $3,614 | $4,271 | | Effective income tax rate | 18.8% | 22.1% | - Income tax expense for Q1 2022 included a **$96 thousand** tax benefit from the settlement of restricted stock units and stock option exercises, and a **$941 thousand** benefit from federal tax credits[226](index=226&type=chunk) [Financial Condition](index=47&type=section&id=Financial%20Condition) The Company's financial condition at March 31, 2022, reflected a slight decrease in total assets and stockholders' equity, primarily due to reduced cash and unrealized losses on securities, despite growth in the loan portfolio; credit quality indicators remained stable, with a decrease in nonperforming assets; deposits saw a minor decline, while FHLB advances increased to supplement funding - Total assets decreased by **$59.0 million** to **$5.08 billion** at March 31, 2022, primarily due to a **$169.4 million** decrease in cash and due from banks, partially offset by increases in loans and securities[227](index=227&type=chunk) - Total stockholders' equity decreased by **$48.6 million** to **$452.0 million**, principally due to unrealized holding losses, net of tax, in the investment securities portfolio[227](index=227&type=chunk) - Total deposits decreased by **$40.3 million** to **$4.38 billion**, while Federal Home Loan Bank advances increased by **$50.0 million**[227](index=227&type=chunk) [Loan Portfolio](index=47&type=section&id=Loan%20Portfolio) The Company's gross total loans held for investment increased by 2.8% to $3.24 billion at March 31, 2022, compared to December 31, 2021; commercial real estate and commercial and industrial loans were the primary drivers of this growth, while residential real estate and agricultural loans saw slight decreases; the portfolio is diversified across various loan types, with a significant portion having adjustable/floating interest rates | Loan Type | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | Change (in thousands) | % Change | |:---|:---|:---|:---|:---|\ | Commercial and industrial | $629,181 | $567,497 | $61,684 | 10.9% | | Commercial real estate | $1,552,134 | $1,486,148 | $65,986 | 4.4% | | Residential real estate | $613,928 | $638,087 | $(24,159) | (3.8)% | | Total loans held for investment | $3,242,577 | $3,155,627 | $86,950 | 2.8% | | Loan Interest Rate Type (March 31, 2022, in thousands) | |:---|:---|\ | Loans with a predetermined fixed interest rate | $1,712,349 | | Loans with an adjustable/floating interest rate | $1,530,228 | | Total | $3,242,577 | - At March 31, 2022, gross total loans, including loans held for sale, were **74.1%** of deposits and **63.9%** of total assets, up from **71.5%** and **61.5%** respectively at December 31, 2021[234](index=234&type=chunk) [Credit Quality Indicators](index=49&type=section&id=Credit%20Quality%20Indicators) The Company categorizes loans into risk categories (Pass, Special Mention, Substandard, Doubtful) based on borrower's ability to service debt and collateral; consumer loans are generally 'Pass' unless payment status or a larger credit relationship dictates a downgrade; this system helps monitor and manage credit risk within the portfolio - Loans are categorized into Pass, Special Mention, Substandard, and Doubtful based on borrower's debt servicing ability, financial information, payment history, credit documentation, public information, and economic trends[68](index=68&type=chunk)[245](index=245&type=chunk) - Special Mention loans have potential weaknesses requiring management attention, while Substandard loans are inadequately protected and jeopardize debt liquidation[69](index=69&type=chunk)[70](index=70&type=chunk) [Nonperforming Assets](index=49&type=section&id=Nonperforming%20Assets) Total nonperforming assets significantly decreased to $37.5 million at March 31, 2022, from $66.0 million at December 31, 2021; this reduction was primarily driven by a decrease in nonaccrual loans and other repossessed assets; the ratio of nonperforming assets to total assets improved to 0.74% from 1.28% | Nonperforming Asset (in thousands) | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Nonaccrual loans | $20,696 | $29,361 | | Accruing loans 90 or more days past due | $0 | $256 | | OREO acquired through foreclosure, net | $7,957 | $7,582 | | Other repossessed assets | $8,805 | $28,799 | | Total nonperforming assets | $37,458 | $65,998 | | Ratio | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Nonperforming assets to total assets | 0.74% | 1.28% | | Nonperforming assets to total loans plus OREO and repossessed assets | 1.15% | 2.07% | - Loans are generally designated as nonaccrual when principal or interest payments are **90 days or more** past due, unless well secured and in the process of collection[247](index=247&type=chunk) [Potential Problem Loans](index=50&type=section&id=Potential%20Problem%20Loans) Potential problem loans, categorized as special mention or substandard, increased to $49.3 million at March 31, 2022, from $32.6 million at December 31, 2021; these loans are performing but raise concerns about the borrower's future repayment ability, and are reviewed for impairment and potential allowance additions - Potential problem loans, which are performing but raise concerns about borrower repayment ability, increased to **$49.3 million** at March 31, 2022, from **$32.6 million** at December 31, 2021[251](index=251&type=chunk) - These loans are assigned a grade of special mention or substandard and are evaluated for impairment to determine the need for write-downs or additions to the allowance for credit losses[251](index=251&type=chunk)[252](index=252&type=chunk) [Allowance for Credit Losses](index=50&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses (ACL) decreased slightly to $47.6 million at March 31, 2022, from $48.4 million at December 31, 2021; management believes the ACL is adequate to cover expected credit losses; the ACL to total loans ratio was 1.5% at March 31, 2022, and the ACL to non-accrual loans ratio was 229.9% | ACL Metric | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Allowance for credit losses (in thousands) | $47,590 | $48,365 | | ACL to total loans outstanding | 1.5% | 1.5% | | ACL to non-accrual loans | 229.9% | 164.7% | | Net charge-offs to average loans | 0.0% | 0.0% | - Management believes that the allowance for credit losses at March 31, 2022, was adequate to cover current expected credit losses in the loan portfolio[258](index=258&type=chunk) - The allowance for credit losses on loans measured on a collective basis totaled **$41.4 million**, or **1.33%** of the **$3.11 billion** in loans measured on a collective basis at March 31, 2022[259](index=259&type=chunk) [Securities](index=51&type=section&id=Securities) The securities portfolio, primarily available-for-sale, increased to 26.6% of total assets at March 31, 2022; while the amortized cost increased, the fair value slightly decreased, leading to a significant increase in unrealized losses, mainly due to rising interest rates; mortgage-backed securities constitute a large portion, with their expected lives differing from contractual maturities due to prepayment rights | Securities Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | |:---|:---|:---| | Amortized Cost of AFS Securities | $1,419,885 | $1,325,015 | | Fair Value of AFS Securities | $1,352,894 | $1,327,442 | | Securities as % of total assets | 26.6% | 25.8% | - The increase in unrealized losses on available-for-sale securities is largely due to changes in interest rates, with fair value expected to recover as securities approach maturity[46](index=46&type=chunk) - Mortgage-backed securities' contractual maturity is not a reliable indicator of their expected lives due to borrower prepayment rights, leading to average lives much different than stated lives[272](index=272&type=chunk) [Goodwill Impairment Assessment](index=56&type=section&id=Goodwill%20Impairment%20Assessment) At March 31, 2022, the Company performed an interim qualitative analysis and concluded there were no indications that goodwill was impaired, based on improving market conditions and strong earnings performance - At March 31, 2022, the Company performed an interim qualitative analysis and concluded there were no indications that goodwill was impaired[274](index=274&type=chunk) - This conclusion was based on improving market conditions and strong earnings performance by the Company[191](index=191&type=chunk) [Deposits](index=56&type=section&id=Deposits) Total deposits decreased by $40.3 million (0.9%) to $4.38 billion at March 31, 2022, compared to December 31, 2021; non-interest-bearing demand deposits increased, while interest-bearing demand, savings, money market, and time deposits decreased; the Company utilizes reciprocal deposit services (ICS and CDARS) for large deposits | Deposit Type | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | |:---|:---|:---| | Non-interest-bearing demand | $1,255,793 | $1,244,117 | | Interest-bearing demand and NOW accounts | $1,179,381 | $1,202,408 | | Savings and money market | $1,332,097 | $1,319,881 | | Time | $612,399 | $653,598 | | Total deposits | $4,379,670 | $4,420,004 | - Total deposits decreased by **$40.3 million**, or **0.9%**, compared to December 31, 2021[276](index=276&type=chunk) - The Company participates in Insured Cash Sweep (ICS) and Certificate of Deposit Account Registry Service (CDARS) programs to manage large deposits and ensure FDIC insurance coverage[277](index=277&type=chunk) [Other Borrowed Funds](index=57&type=section&id=Other%20Borrowed%20Funds) The Company uses various borrowings, including federal funds purchased, retail repurchase agreements, FHLB advances, and subordinated debt, to supplement deposits and fund lending and investing activities; these sources are crucial for managing liquidity and capital - The Company utilizes borrowings to supplement deposits to fund its lending and investing activities[282](index=282&type=chunk) - Short-term and long-term borrowings include federal funds purchased and retail repurchase agreements, FHLB advances, Federal Reserve Bank discount window, a bank stock loan, and subordinated debt[282](index=282&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) The Company manages liquidity to meet anticipated demands for funds through core deposits, security/loan maturities, and other funding sources like FHLB borrowings; cash and cash equivalents decreased significantly in Q1 2022 due to investing and financing activities; capital resources are maintained above regulatory minimums, with Equity Bank categorized as 'well capitalized,' ensuring financial soundness and access to liquidity [Liquidity](index=57&type=section&id=Liquidity) The Company's liquidity is managed to meet anticipated customer demands and unexpected cash needs, primarily through core deposits, security and loan maturities, and amortizing portfolios; other funding sources include federal funds purchased, brokered CDs, and FHLB borrowings; cash and cash equivalents decreased by $169.9 million in Q1 2022, mainly due to investing and financing activities - Liquidity needs are primarily met by core deposits, security and loan maturities, and amortizing investment and loan portfolios[286](index=286&type=chunk) - Cash and cash equivalents decreased by **$169.9 million** to **$90.1 million** at March 31, 2022, driven primarily by net cash used in investing activities (**$165.9 million**) and financing activities (**$11.8 million**)[288](index=288&type=chunk) - The Company believes its daily funding needs can be met through operating activities, loan/investment payments, the core deposit base, and FHLB advances/other borrowing relationships[288](index=288&type=chunk) [Off-Balance-Sheet Items](index=57&type=section&id=Off-Balance-Sheet%20Items) The Company engages in off-balance-sheet transactions, such as commitments to extend credit and standby/commercial letters of credit, to meet customer financing needs; these involve credit and interest rate risk, managed with the same credit policies as on-balance sheet instruments - Off-balance-sheet items include commitments to extend credit and standby and commercial letters of credit, which involve credit risk and interest rate risk[289](index=289&type=chunk) - The Company uses the same credit policies and procedures for these commitments as for on-balance sheet instruments[291](index=291&type=chunk) [Capital Resources](index=58&type=section&id=Capital%20Resources) The Company and Equity Bank are subject to federal regulatory capital requirements and maintain capital levels above minimums; as of March 31, 2022, Equity Bank was categorized as 'well capitalized' under prompt corrective action regulations, indicating strong financial soundness and compliance with all capital adequacy requirements - The Company and Equity Bank are subject to regulatory capital requirements and maintain minimum capital relative to assets[293](index=293&type=chunk) - Management believes that as of March 31, 2022, both the Company and Equity Bank met all applicable capital adequacy requirements[294](index=294&type=chunk) - Equity Bank was categorized as 'well capitalized' under the regulatory framework for prompt corrective action as of March 31, 2022[296](index=296&type=chunk) [Non-GAAP Financial Measures](index=58&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations and explanations for non-GAAP financial measures used by the Company, including Tangible Book Value Per Common Share, Tangible Common Equity to Tangible Assets, Return on Average Tangible Common Equity, and Efficiency Ratio; these measures are used by management and investors to evaluate financial performance and condition by excluding or adjusting for certain GAAP amounts, particularly intangible assets and non-recurring expenses - Non-GAAP financial measures are used to supplement GAAP measures, providing additional insights into financial performance and condition, especially by adjusting for intangible assets and certain expenses[297](index=297&type=chunk)[298](index=298&type=chunk) - Key non-GAAP measures discussed include Tangible Book Value Per Common Share, Tangible Common Equity to Tangible Assets, Return on Average Tangible Common Equity, and Efficiency Ratio[299](index=299&type=chunk)[303](index=303&type=chunk)[307](index=307&type=chunk)[309](index=309&type=chunk) [Tangible Book Value Per Common Share and Tangible Book Value Per Diluted Common Share](index=58&type=section&id=Tangible%20Book%20Value%20Per%20Common%20Share%20and%20Tangible%20Book%20Value%20Per%20Diluted%20Common%20Share) Tangible book value per common share and per diluted common share are non-GAAP measures that exclude goodwill and other intangible assets from total stockholders' equity; these metrics are important for investors to assess changes in book value exclusive of intangible assets, which do not increase tangible book value | Metric | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Total stockholders' equity (in thousands) | $452,015 | $500,631 | | Less: goodwill (in thousands) | $54,465 | $54,465 | | Less: core deposit intangibles, net (in thousands) | $13,830 | $14,879 | | Tangible common equity (in thousands) | $382,393 | $429,924 | | Book value per common share | $27.47 | $29.87 | | Tangible book value per common share | $23.24 | $25.65 | | Tangible book value per diluted common share | $22.95 | $25.22 | - Management believes these measures are important to investors interested in period-to-period changes in book value per common share, exclusive of changes in intangible assets[302](index=302&type=chunk) [Tangible Common Equity to Tangible Assets](index=59&type=section&id=Tangible%20Common%20Equity%20to%20Tangible%20Assets) Tangible common equity to tangible assets is a non-GAAP measure that excludes goodwill and other intangible assets from both total stockholders' equity and total assets; this ratio provides a clearer view of the Company's capital strength relative to its tangible asset base, which is valued by financial analysts and investors | Metric | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Total stockholders' equity (in thousands) | $452,015 | $500,631 | | Tangible common equity (in thousands) | $382,393 | $429,924 | | Total assets (in thousands) | $5,078,623 | $5,137,631 | | Tangible assets (in thousands) | $5,009,001 | $5,066,924 | | Equity to assets (GAAP) | 8.90% | 9.74% | | Tangible common equity to tangible assets (Non-GAAP) | 7.63% | 8.48% | - This measure is important to investors interested in the relative changes in common equity and total assets, exclusive of changes in intangible assets[304](index=304&type=chunk) [Return on Average Tangible Common Equity](index=60&type=section&id=Return%20on%20Average%20Tangible%20Common%20Equity) Return on average tangible common equity (ROATCE) is a non-GAAP measure that adjusts net income for intangible asset amortization and uses average tangible common equity; for Q1 2022, ROATCE was 15.85%, higher than the GAAP return on average equity (12.88%), providing a better indication of earnings quality on tangible equity by excluding the impact of goodwill and other intangible assets | Metric | March 31, 2022 | December 31, 2021 | |:---|:---|:---| | Total average stockholders' equity (in thousands) | $492,599 | $563,046 | | Average tangible common equity (in thousands) | $422,418 | $501,860 | | Net income allocable to common stockholders (in thousands) | $15,650 | $10,466 | | Adjusted net income allocable to common stockholders (in thousands) | $16,507 | $11,348 | | Return on total average stockholders' equity (ROAE) annualized (GAAP) | 12.88% | 7.37% | | Return on average tangible common equity (ROATCE) annualized (Non-GAAP) | 15.85% | 8.97% | - Management believes this measure is important to investors interested in earnings quality on tangible common equity, as goodwill and other intangible assets increase total stockholders' equity without increasing tangible common equity[308](index=308&type=chunk) [Efficiency Ratio](index=60&type=section&id=Efficiency%20Ratio) The non-GAAP efficiency ratio, which excludes merger expenses and loss on debt extinguishment from non-interest expense and net gain on acquisition/securities transactions from non-interest income, was 60.36% for Q1 2022, an improvement from 72.25% in Q4 2021 and 64.18% in Q1 2021; this adjusted ratio helps investors assess operating expenses in relation to operating revenue by removing non-recurring or non-operational items | Metric | March 31, 2022 | December 31, 2021 | March 31, 2021 | |:---|:---|:---|:---|\ | Non-interest expense, excluding adjustments (in thousands) | $29,136 | $33,527 | $24,729 | | Net interest income plus non-interest income, excluding adjustments (in thousands) | $48,271 | $46,406 | $38,532 | | Efficiency Ratio (Non-GAAP) | 60.36% | 72.25% | 64.18% | - The adjusted efficiency ratio allows investors and analysts to better assess operating expenses in relation to operating revenue by removing merger expenses and net gain (loss) from securities transactions[311](index=311&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company's primary market risk is interest rate volatility, managed by the Asset Liability Committee (ALCO) through balance sheet structuring and simulation analysis; ALCO monitors net interest income (NII) and economic value of equity (EVE) sensitivity to interest rate changes; simulation results for March 31, 2022, indicate negative impacts on NII and EVE in both rising and falling interest rate scenarios, primarily due to liability sensitivity, fixed-rate assets, and prepayment assumptions - The primary component of market risk is interest rate volatility, which impacts income, expense, and market value of interest-earning assets and liabilities[315](index=315&type=chunk) - The Asset Liability Committee (ALCO) manages interest rate exposure by structuring the balance sheet and using simulation analysis to monitor NII and EVE sensitivity to interest rate changes[317](index=317&type=chunk)[319](index=319&type=chunk) | Change in prevailing interest rates | Impact on Net Interest Income (March 31, 2022) | Impact on Economic Value of Equity (March 31, 2022) | |:---|:---|:---| | +300 basis points | (5.1)% | (10.1)% | | +200 basis points | (3.1)% | (4.3)% | | +100 basis points | (1.5)% | (1.9)% | | 0 basis points | — | — | | -100 basis points | (2.7)% | (4.3)% | - Negative impacts on NII in up-rate scenarios are due to assumed migration of non-term deposits to higher-rate term deposits, fixed-rate investments/loans not repricing, and variable-rate loan restrictions; negative impacts in down-rate scenarios are due to decreased investment income from negative convexity of mortgage-backed securities and assumed prepayments[320](index=320&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the effectiveness of disclosure controls and procedures as of March 31, 2022, concluding they are effective in providing reasonable assurance that required information is accumulated, communicated, recorded, processed, summarized, and reported timely; there were no material changes in internal control over financial reporting during the period - The Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed is accumulated, communicated, recorded, processed, summarized, and reported within specified time periods[329](index=329&type=chunk) - There were no changes in the Company's internal control over financial reporting during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting[330](index=330&type=chunk) [PART II OTHER INFORMATION](index=62&type=section&id=Part%20II%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, defaults, and other disclosures [Item 1. Legal Proceedings](index=64&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in various litigation matters in the ordinary course of business, with specific details on pending lawsuits regarding overdraft fees provided in Note 12 to the financial statements - The Company is a party to various litigation matters incidental to the conduct of its business[332](index=332&type=chunk) - Specific details on pending lawsuits regarding overdraft fees are discussed in Note 12 of the Condensed Notes to Interim Consolidated Financial Statements[332](index=332&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the Company's risk factors previously disclosed in its Annual Report on Form 10-K filed on March 9, 2022 - 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 9, 2022[333](index=333&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased 384,383 shares of its Class A common stock during Q1 2022 under a program authorized in September 2021; the average price paid was $32.21 per share, with 482,744 shares remaining available for repurchase under the program as of March 31, 2022 - The Company's Board of Directors authorized the repurchase of up to **1,000,000** shares of outstanding common stock, commencing October 29, 2021, and concluding October 28, 2022[334](index=334&type=chunk) | Period | Total Number of Shares Purchased | Average Price Paid per Share | |:---|:---|:---| | January 1, 2022 through January 31, 2022 | 80,864 | $33.50 | | February 1, 2022 through February 28, 2022 | 113,659 | $32.04 | | March 1, 2022 through March 31, 2022 | 189,860 | $31.76 | | Total (Q1 2022) | 384,383 | $32.21 | - As of March 31, 2022, **482,744** shares remained available for repurchase under the program[336](index=336&type=chunk) [Item 3. Defaults Upon Senior Securities](index=64&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[337](index=337&type=chunk) [Item 4. Mine Safety Disclosures](index=64&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[337](index=337&type=chunk) [Item 5. Other Information](index=64&type=section&id=Item%205.%20Other%20Information) There is no other information to report under this item - None[338](index=338&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Quarterly Report, including amendments to loan agreements, equity incentive plans, certifications from the CEO and CFO, and Inline XBRL documents - Exhibit 10.1: Fifth Amendment to Loan and Security Agreement, dated February 11, 2022, by and between Equity Bancshares, Inc. and ServisFirst Bank[338](index=338&type=chunk) - Exhibit 10.2: Equity Bancshares, Inc. 2022 Omnibus Equity Incentive Plan[338](index=338&type=chunk) - Exhibits 31.1* and 31.2*: Certifications of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act[338](index=338&type=chunk) - Exhibits 32.1** and 32.2**: Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350[339](index=339&type=chunk) - Exhibits 101.INS* through 101.PRE* and 104*: Inline XBRL documents[339](index=339&type=chunk)

Financial Data and Key Metrics Changes - The company reported net income of $15.7 million or $0.93 per diluted share, exceeding consensus estimates of $0.63 [6][11] - Non-interest income decreased slightly to $9 million, while non-interest expenses (excluding merger costs) decreased to $29.1 million [11][12] - The allowance for credit losses (ACL) coverage ratio for non-PPP loans decreased to 1.48% from 1.55% in the previous quarter [13][17] Business Line Data and Key Metrics Changes - Organic loan originations totaled $304 million, with 92% in commercial, CRE, and agricultural loans, resulting in a linked quarter loan growth of $87 million [19] - Net interest income increased to $39.3 million from $37.2 million in the linked quarter, with a net interest margin (NIM) increase of 19 basis points to 3.2% [26][27] - Fee income related to PPP loans decreased significantly, with only $755,000 recognized in the first quarter compared to $2.6 million in the previous quarter [28] Market Data and Key Metrics Changes - The company noted strong economic performance in its markets, particularly in oil and gas, retail, and aerospace, with no significant slowdowns observed [65][66] - The agricultural sector remains healthy, with customers sitting on cash and benefiting from rising grain prices [52][66] Company Strategy and Development Direction - The company aims to improve operating performance and achieve a return on tangible equity in the mid-teens, focusing on reducing excess liquidity and increasing fee income [32][34] - There is a commitment to organic growth and enhancing the digital experience for customers while exploring potential M&A opportunities that align with strategic goals [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic landscape, despite concerns over inflation and supply chain disruptions, indicating that customers have not yet faced significant difficulties [19][65] - The company anticipates moderate declines in NIM in the second quarter due to uncertainties regarding the cost of funds and potential rate hikes by the Federal Reserve [30][31] Other Important Information - The company is implementing an ITM network and focusing on automating processes to improve operational efficiency [9][21] - Recent changes in regional leadership are expected to enhance contributions to the company's results [24] Q&A Session Summary Question: Impact of potential Fed rate hikes on net interest margin - Management indicated minimal dependence on wholesale funding, suggesting that a 50 basis point increase would have a balanced impact on both sides of the balance sheet [37][38] Question: M&A pricing expectations amid economic uncertainty - Management noted active conversations with potential partners, emphasizing the importance of strategic fit and economic viability in any potential deals [40][41] Question: Loan growth outlook amid economic uncertainty - Management expressed confidence in loan growth, projecting a midpoint annualized growth of about 8% from current levels [45][46] Question: Fee income sustainability - Management expects non-interest income to stabilize in the low $2 million range, with positive contributions from derivatives due to higher rates [67] Question: Credit leverage and provisioning outlook - Management indicated a budgeted provision of about 10 basis points on an annualized basis, reflecting improved asset quality and growth expectations [58][60]

Exhibit 99.2 First Quarter Earnings Presentation April 20, 2022 Forward Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity's management with respect to, among other things, future events and Equity's financial performance. These statements are often, but not always, made t ...

Part I [Business Overview](index=3&type=section&id=Part%20I) This section provides an overview of Equity Bancshares, Inc.'s business, including its operations, growth strategies, competitive strengths, and regulatory environment [Our Company](index=5&type=section&id=Our%20Company) Equity Bancshares, Inc. is a bank holding company operating through its subsidiary, Equity Bank, across four states - Equity Bancshares, Inc. operates through Equity Bank, providing financial services via **69 branches** in AR, KS, MO, and OK as of December 31, 2021[14](index=14&type=chunk) Consolidated Financial Data (as of December 31, 2021) | Metric | Amount (Millions) | | :----------------- | :---------------- | | Total Assets | $5,140 | | Total Deposits | $4,420 | | Total Loans (net) | $3,110 | | Stockholders' Equity | $500.6 | [Our History and Growth](index=5&type=section&id=Our%20History%20and%20Growth) The company has a history of successful strategic acquisitions and focuses on improving loan and deposit mixes of acquired banks - Founded in November 2002, Equity Bancshares has a successful track record of strategic acquisitions, completing **18 transactions** between June 2003 and December 2021, expanding its branch network from two to **69** and increasing full-time equivalent employees from 19 to **702**[16](index=16&type=chunk)[17](index=17&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk) - The company focuses on repositioning and improving the loan and deposit mix of acquired banks, disposing of problematic loans, and replacing them with higher-quality, organically generated loans, particularly in the commercial sector[20](index=20&type=chunk) [Our Strategies](index=6&type=section&id=Our%20Strategies) The company's core strategy involves strategic consolidation, organic growth in key markets, and enhancing acquired bank performance - The company's core strategy is the strategic consolidation of community banks to achieve economies of scale and improve efficiency, alongside organic growth in targeted Midwestern markets[22](index=22&type=chunk) - A key focus is on enhancing the performance of acquired banks by integrating them into existing operational platforms and realizing synergies in technology, data processing, compliance, and human resources[25](index=25&type=chunk) - Equity Bancshares aims to grow commercial loans in metropolitan markets (Kansas City, Wichita, Tulsa) funded by low-cost, stable core deposits from community markets, supported by opportunistic hiring of talented bankers[25](index=25&type=chunk)[27](index=27&type=chunk) Deposits and Loans by Market Type (as of December 31, 2021) | Market Type | Deposits (Thousands) | Deposits (%) | Loans (Thousands) | Loans (%) | | :------------------- | :------------------- | :----------- | :---------------- | :-------- | | Metropolitan Markets | $1,441,634 | 33% | $1,953,142 | 62% | | Community Markets | $2,978,369 | 67% | $1,202,485 | 38% | [Our Competitive Strengths](index=8&type=section&id=Our%20Competitive%20Strengths) The company leverages an experienced leadership team, a commercial banking focus, disciplined acquisitions, and scalable infrastructure - The company boasts an experienced leadership team with over **twenty years of experience** in financial institutions and M&A, fostering a transparent and entrepreneurial culture[28](index=28&type=chunk) - Equity Bancshares is primarily a commercial bank, with commercial loans comprising over **65.1% of its loan portfolio** as of December 31, 2021, and **72.4% of those being commercial real estate loans**[28](index=28&type=chunk) - A disciplined acquisition approach includes selective valuations, comprehensive due diligence, achievable cost savings estimates, and robust integration of credit procedures and risk management[28](index=28&type=chunk)[30](index=30&type=chunk) - The company has built an efficient and scalable corporate infrastructure through technology investments and outsourcing, supporting anticipated growth while controlling costs[30](index=30&type=chunk) [2021 Acquisitions](index=9&type=section&id=2021%20Acquisitions) In 2021, the company completed two key acquisitions, significantly expanding its assets, loans, and deposits - On October 1, 2021, Equity Bancshares acquired American State Bancshares, Inc. (ASBI), issuing **2,485,983 shares of Class A common stock** and paying **$8.4 million in cash**, adding **$777.6 million in total assets**, **$441.9 million in loans**, and **$668.8 million in deposits**[19](index=19&type=chunk)[31](index=31&type=chunk) - On December 6, 2021, the company acquired three branch locations from Security Bank of Kansas City, increasing deposits by **$75.1 million**, loans by **$1.4 million**, and total assets by **$75.8 million**[19](index=19&type=chunk)[33](index=33&type=chunk) [Our Banking Services](index=10&type=section&id=Our%20Banking%20Services) The company offers diverse commercial and consumer loans and deposit products, supported by conservative lending and digital solutions - The company offers a variety of commercial and consumer loans, with total loans (net of allowances) of **$3.11 billion** as of December 31, 2021, representing **60.5% of total assets**[36](index=36&type=chunk)[37](index=37&type=chunk) - Loan portfolio concentrations include commercial real estate (**47.1%**), commercial and industrial (**18%**), and residential real estate (**20.2%**), primarily in metropolitan Kansas City, Tulsa, and Wichita[37](index=37&type=chunk) - Lending activities are guided by conservative loan policies, consistent underwriting, ongoing credit monitoring, and a diversified portfolio approach, with a Chief Credit Officer providing company-wide oversight[41](index=41&type=chunk)[42](index=42&type=chunk) - Deposit products include demand, savings, money market, and time deposits, with strategies focused on core deposits and cross-selling to loan customers, supported by online and mobile banking solutions, treasury management, and wealth management services[66](index=66&type=chunk)[68](index=68&type=chunk)[71](index=71&type=chunk)[73](index=73&type=chunk) [Our Markets](index=14&type=section&id=Our%20Markets) The company operates 69 branches across four states, strategically balancing metropolitan and community markets with diverse industries - As of December 31, 2021, banking operations are conducted through **69 locations** in Arkansas, Kansas, Missouri, and Oklahoma, with a strategic split between growing metropolitan markets (Kansas City, Wichita, Tulsa) and stable community markets[74](index=74&type=chunk)[77](index=77&type=chunk) - The markets have experienced stable population growth and are home to diverse industries including manufacturing, trade, healthcare, consumer services, and technology, with expected household income growth of **9.22% from 2022-2027**[75](index=75&type=chunk)[77](index=77&type=chunk)[78](index=78&type=chunk) [Information Technology Systems](index=15&type=section&id=Information%20Technology%20Systems) The company invests in IT systems and staff to support growth and customer experience, employing a layered cybersecurity model - The company invests significantly in IT systems and staff to support growth, enhance product capabilities, and improve customer experience, utilizing nationally recognized software vendors and third-party service providers for core systems and online banking[80](index=80&type=chunk)[81](index=81&type=chunk) - A layered cybersecurity model is employed to protect systems and data, though evolving threats necessitate continuous resource expenditure for protective measures and remediation[82](index=82&type=chunk) [Competition](index=15&type=section&id=Competition) The company faces intense competition from various financial institutions, leveraging personalized service and community involvement - The financial services industry is highly competitive, with rivals including other banks, internet-based banks, money market funds, and other financial services companies, many of whom have greater resources and broader offerings[84](index=84&type=chunk) - Equity Bancshares competes through personalized service, community involvement, and competitive pricing, aiming to leverage its comprehensive banking products against smaller banks and its relationship-based service against larger institutions[79](index=79&type=chunk)[86](index=86&type=chunk) [Human Capital](index=16&type=section&id=Human%20Capital) The company prioritizes attracting and retaining qualified employees, fostering an inclusive workplace, and investing in development programs - The company's success relies on attracting and retaining highly qualified employees, fostering an inclusive and supportive workplace, and investing in employee development through programs like 'Equity University'[87](index=87&type=chunk) - As of December 31, 2021, the company employed **702 full-time equivalent employees**, none of whom are represented by a collective bargaining unit[87](index=87&type=chunk) [Available Information](index=16&type=section&id=Available%20Information) The company provides SEC filings (10-K, 10-Q, 8-K) free of charge on its investor relations website - The company files reports with the SEC (10-K, 10-Q, 8-K) and makes them available free of charge on its investor relations website[88](index=88&type=chunk) [Supervision and Regulation](index=16&type=section&id=Supervision%20and%20Regulation) The company is subject to extensive regulation by federal and state authorities, ensuring a safe banking system and consumer protection - The company is subject to extensive regulation by authorities such as the Federal Reserve, FDIC, and Kansas OSBC, with primary goals of maintaining a safe banking system and sound monetary policy, primarily for the protection of depositors and the public[89](index=89&type=chunk)[90](index=90&type=chunk) - Key regulations include the Bank Holding Company Act (BHC Act), Basel III capital requirements (CET1, Tier 1, Total Risk-Based, Leverage ratios), FDICIA's prompt corrective action, and consumer protection laws like the Dodd-Frank Act and CRA[95](index=95&type=chunk)[104](index=104&type=chunk)[111](index=111&type=chunk)[119](index=119&type=chunk)[132](index=132&type=chunk)[139](index=139&type=chunk)[148](index=148&type=chunk) - Equity Bank, as a Kansas state-chartered bank, is subject to dividend restrictions under the Kansas Banking Code and federal capital guidelines, requiring regulatory approval under certain conditions[124](index=124&type=chunk)[125](index=125&type=chunk) - The company must comply with anti-money laundering laws (Patriot Act, Bank Secrecy Act) and privacy regulations, with non-compliance potentially leading to significant legal, reputational, and financial consequences[145](index=145&type=chunk)[146](index=146&type=chunk) Consolidated Financial Snapshot (as of December 31, 2021) | Metric | Amount (Millions) | | :----------------- | :---------------- | | Total Assets | $5,140 | | Total Deposits | $4,420 | | Total Loans (net) | $3,110 | | Stockholders' Equity | $500.6 | - The company's strategy involves strategic consolidation of community banks and organic growth, particularly by expanding its commercial customer base in metropolitan markets (Kansas City, Wichita, Tulsa) while leveraging stable, low-cost deposits from community markets[22](index=22&type=chunk)[25](index=25&type=chunk) Loan Portfolio Composition (as of December 31, 2021) | Loan Type | Amount (Millions) | Percentage of Total Loans | | :------------------------ | :---------------- | :------------------------ | | Commercial Real Estate | $1,490 | 47.1% | | Commercial and Industrial | $567.5 | 18.0% | | Residential Real Estate | $638.1 | 20.2% | - In 2021, Equity Bancshares acquired American State Bancshares, Inc. (ASBI) and three branches from Security Bank of Kansas City, significantly increasing deposits, loans, and total assets[19](index=19&type=chunk)[31](index=31&type=chunk)[33](index=33&type=chunk) [Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks including economic, credit, interest rate, strategic, operational, and regulatory factors - Economic risks include the potential for recessionary conditions leading to increased nonperforming loans and reduced demand for services, and adverse effects from changes in monetary policy, inflation, or commodity price volatility[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[165](index=165&type=chunk) - Credit and interest rate risks encompass the inability to effectively manage credit risk, potential losses from declining asset credit quality (especially real estate and commercial loans), and vulnerability to interest rate fluctuations, including the transition from LIBOR[167](index=167&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[174](index=174&type=chunk)[181](index=181&type=chunk)[184](index=184&type=chunk) - Strategic risks involve negative impacts from failing to execute growth strategies, difficulties in identifying and integrating acquisitions, and challenges associated with rapid growth or expansion into new markets[191](index=191&type=chunk)[192](index=192&type=chunk)[194](index=194&type=chunk)[196](index=196&type=chunk)[197](index=197&type=chunk)[198](index=198&type=chunk)[213](index=213&type=chunk) - Operational risks include heavy reliance on the management team, geographic concentration of business, technological changes, potential information system failures or cyber-attacks (including a November 2021 incident), dependence on third-party vendors, and risks from employee errors or fraud[202](index=202&type=chunk)[204](index=204&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk)[227](index=227&type=chunk)[229](index=229&type=chunk)[233](index=233&type=chunk)[234](index=234&type=chunk) - Regulatory risks stem from extensive industry regulation, potential changes in laws and monetary policy, banking agency examinations, higher FDIC insurance premiums, stringent capital requirements, and the Federal Reserve's 'source of strength' doctrine[240](index=240&type=chunk)[243](index=243&type=chunk)[244](index=244&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk)[248](index=248&type=chunk)[256](index=256&type=chunk) - Risks related to common stock include market price fluctuations, dilution from future stock issuances for acquisitions or capital, significant influence by institutional investors and executive officers, and the fact that shares are not insured deposits[262](index=262&type=chunk)[274](index=274&type=chunk)[275](index=275&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk)[279](index=279&type=chunk) [Unresolved Staff Comments](index=48&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company has no unresolved staff comments from the SEC - There are no unresolved staff comments[302](index=302&type=chunk) [Properties](index=48&type=section&id=Item%202.%20Properties) The company's principal executive offices are in Wichita, Kansas, operating **69 owned branches** across four states, suitable for operations - The company's principal executive offices are located at 7701 East Kellogg Drive, Wichita, Kansas 67207[304](index=304&type=chunk) - As of December 31, 2021, the company operated a total of **69 branches** across Arkansas, Kansas, Missouri, and Oklahoma[304](index=304&type=chunk) - Most of Equity Bank's branches are owned, equipped with automated teller machines and drive-through facilities, and are considered suitable for operational needs[304](index=304&type=chunk)[305](index=305&type=chunk)[307](index=307&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk)[311](index=311&type=chunk) [Legal Proceedings](index=54&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various litigation, including a class action lawsuit on overdraft fees dismissed in November 2021 after settlement - The company is party to various litigation matters in the ordinary course of business[313](index=313&type=chunk) - A lawsuit filed in November 2020 concerning improperly collected overdraft fees was dismissed with prejudice on November 29, 2021, following a settlement[898](index=898&type=chunk) [Mine Safety Disclosures](index=54&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable[314](index=314&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=55&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's Class A common stock trades on NASDAQ, with **16.66 million shares outstanding**, a discretionary dividend policy, and share repurchase programs - The company's Class A common stock is listed on the NASDAQ Global Select Market under the symbol 'EQBK'[316](index=316&type=chunk) Common Stock Outstanding (as of February 28, 2022) | Class | Shares Outstanding | | :------------------- | :----------------- | | Class A Common Stock | 16,660,372 | | Class B Common Stock | 0 | - The dividend policy is discretionary, determined by the board of directors based on factors like earnings, capital, regulatory restrictions, and business strategy. Dividends are primarily dependent on distributions from Equity Bank, which are also subject to regulatory limits[317](index=317&type=chunk)[319](index=319&type=chunk) - The company authorized share repurchase programs, including up to **1,000,000 shares of Class A common stock** from October 30, 2021, to October 29, 2022. In Q4 2021, **132,873 shares were repurchased** at an average price of **$32.99**[327](index=327&type=chunk)[331](index=331&type=chunk) Equity Compensation Plan Data (as of December 31, 2021) | Plan Category | Number of Securities to be Issued Upon Exercise | Weighted Average Exercise Price | Number of Securities Remaining Available for Future Issuance | | :-------------------------------------------------------------------------- | :---------------------------------------------- | :------------------------------ | :----------------------------------------------------------- | | Equity compensation plans approved by security holders - stock options | 478,841 | $26.08 | * | | Equity compensation plans approved by security holders - restricted stock units | 287,737 | — | * | | Total Equity compensation plans available under the Amended and Restated 2013 Stock Incentive Plan | 766,578 | | 420,985 | | Equity compensation plans approved by security holders - employee stock purchase plan | — | — | 412,531 | | **Total** | **766,578** | **$26.08** | **833,516** | [Reserved](index=57&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=58&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and results for 2021, highlighting increased net income, asset growth, and the impact of acquisitions [Overview](index=62&type=section&id=Overview) Equity Bancshares, Inc. aims to increase stockholder value through organic growth and strategic acquisitions across its 69 branches - Equity Bancshares, Inc. is a bank holding company with **69 full-service branches** across Arkansas, Kansas, Missouri, and Oklahoma, aiming to increase stockholder value through organic growth and strategic acquisitions[340](index=340&type=chunk)[342](index=342&type=chunk) Key Financial Highlights (Year Ended December 31, 2021) | Metric | Amount (Millions) | YoY Change (%) | | :----------------------------------- | :---------------- | :------------- | | Net Interest Income | $142.6 | 7.5% | | Total Loans Held for Investment | $3,160 | 21.8% | | Total Deposits | $4,420 | 28.2% | | Total Assets | $5,140 | 28.0% | | Tangible Book Value per Common Share | $25.65 | 3.9% | - The company completed the acquisition of ASBI and three Security Bank branches in 2021, contributing to significant asset and deposit growth[344](index=344&type=chunk) - The COVID-19 pandemic continued to impact operations in 2021, leading to payment deferral programs for commercial clients (**$36.3 million in 20 loans**) and active participation in the Paycheck Protection Program (PPP), with **$44.8 million in outstanding PPP loans** as of December 31, 2021[345](index=345&type=chunk)[347](index=347&type=chunk)[355](index=355&type=chunk)[356](index=356&type=chunk) [Critical Accounting Policies](index=64&type=section&id=Critical%20Accounting%20Policies) The company adopted the CECL methodology in 2021 for credit losses and annually assesses goodwill for impairment - The company adopted the Current Expected Credit Loss (CECL) methodology on January 1, 2021, requiring estimation of expected credit losses over the contractual life of loans, considering historical default and loss experience, current and projected economic conditions, and qualitative factors[359](index=359&type=chunk)[360](index=360&type=chunk) - Goodwill, resulting from business acquisitions, is assessed annually for impairment. Following a **$104.8 million impairment charge in 2020**, no further impairment was warranted in 2021 due to improving market conditions and strong earnings[362](index=362&type=chunk) [Results of Operations](index=65&type=section&id=Results%20of%20Operations) Net income significantly increased in 2021 due to the absence of goodwill impairment and a decrease in loan loss provisions - Net income allocable to common stockholders increased by **$127.5 million to $52.5 million in 2021**, compared to a net loss of **$75.0 million in 2020**, primarily due to the absence of a goodwill impairment charge and a decrease in provision for loan losses[370](index=370&type=chunk) Net Interest Income and Margin Analysis (Years Ended December 31) | Metric | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :------------------ | :--------------- | :--------------- | :--------------- | | Interest Income | $157,368 | $155,561 | $175,499 | | Interest Expense | $14,789 | $22,909 | $49,641 | | Net Interest Income | $142,579 | $132,652 | $125,858 | | Net Interest Margin | 3.44% | 3.63% | 3.48% | - Net interest income increased by **$9.9 million (7.5%) in 2021**, driven by increased volume of interest-earning assets (especially loans) and a decrease in average rates of interest-bearing liabilities, partially offset by lower yields on interest-earning assets[343](index=343&type=chunk)[380](index=380&type=chunk) - A reversal of provision for credit losses of **$8.5 million** occurred in 2021, compared to a **$24.3 million provision in 2020**, mainly due to reductions in reserves on specifically assessed assets and improving economic conditions, partially offset by CECL adoption impacts[386](index=386&type=chunk) Non-Interest Income (Years Ended December 31) | Category | 2021 (Thousands) | 2020 (Thousands) | Change (Thousands) | Change (%) | | :----------------------------- | :--------------- | :--------------- | :----------------- | :--------- | | Service Charges and Fees | $8,596 | $6,856 | $1,740 | 25.4% | | Debit Card Income | $10,236 | $9,136 | $1,100 | 12.0% | | Mortgage Banking | $3,306 | $3,153 | $153 | 4.9% | | Increase in Bank-Owned Life Insurance | $3,506 | $1,941 | $1,565 | 80.6% | | Other Non-Interest Income | $6,207 | $2,781 | $3,426 | 123.2% | | Net Gain on Acquisition | $585 | $2,145 | $(1,560) | (72.7)% | | Net Gain (Loss) from Securities Transactions | $406 | $11 | $395 | 3590.9% | | **Total Non-Interest Income** | **$32,842** | **$26,023** | **$6,819** | **26.2%** | - Total non-interest expense decreased by **$89.5 million (42.8%) in 2021**, primarily due to the **$104.8 million goodwill impairment charge in 2020**. Excluding this, expenses increased due to higher occupancy, data processing, and other non-interest expenses[397](index=397&type=chunk) Non-Interest Expense (Years Ended December 31) | Category | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :------------------------------- | :--------------- | :--------------- | :--------------- | | Salaries and Employee Benefits | $54,198 | $54,129 | $52,122 | | Net Occupancy and Equipment | $10,137 | $8,784 | $8,674 | | Data Processing | $13,261 | $10,991 | $10,124 | | Professional Fees | $4,713 | $4,282 | $4,734 | | Merger Expenses | $9,189 | $299 | $915 | | Goodwill Impairment | $— | $104,831 | $— | | **Total Non-Interest Expense** | **$119,465** | **$208,990** | **$99,635** | [Financial Condition](index=73&type=section&id=Financial%20Condition) Total assets and loans grew significantly in 2021, while nonperforming assets increased, and the allowance for credit losses rose due to CECL adoption - Total assets increased by **$1.12 billion (28.0%) to $5.14 billion** at December 31, 2021, driven by increases in securities (**$455.6 million**), loans (**$549.3 million**), and other assets[412](index=412&type=chunk) - Gross loans held for investment increased by **$563.9 million (21.8%) to $3.16 billion** at December 31, 2021, with significant growth in commercial real estate and residential real estate, partially offset by a decrease in commercial and industrial loans[343](index=343&type=chunk)[413](index=413&type=chunk) Loan Portfolio Composition (as of December 31) | Loan Type | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :------------------------ | :--------------- | :--------------- | :--------------- | | Commercial and Industrial | $567,497 | $734,495 | $592,052 | | Commercial Real Estate | $1,486,148 | $1,188,696 | $1,158,022 | | Residential Real Estate | $638,087 | $381,958 | $503,439 | | Agricultural Real Estate | $198,330 | $133,693 | $141,868 | | Agricultural | $166,975 | $94,322 | $92,893 | | Consumer | $98,590 | $58,532 | $68,378 | | **Total Loans** | **$3,155,627** | **$2,591,696** | **$2,556,652** | - Nonperforming assets increased to **$66.0 million** at December 31, 2021, from **$54.6 million in 2020**, with nonaccrual loans at **$29.4 million** and other repossessed assets at **$28.8 million**[432](index=432&type=chunk) Nonperforming Assets (as of December 31) | Metric | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :----------------------------------- | :--------------- | :--------------- | :--------------- | | Nonaccrual Loans | $29,361 | $43,689 | $38,379 | | Accruing Loans 90+ Days Past Due | $256 | $143 | $— | | OREO Acquired Through Foreclosure, Net | $7,582 | $10,698 | $8,293 | | Other Repossessed Assets | $28,799 | $67 | $236 | | **Total Nonperforming Assets** | **$65,998** | **$54,597** | **$46,908** | | Nonperforming Assets to Total Assets | 1.28% | 1.36% | 1.19% | - The allowance for credit losses totaled **$48.4 million (1.53% of total loans)** at December 31, 2021, up from **$33.7 million (1.30% of total loans) in 2020**, primarily due to CECL adoption and increasing estimated exposure at default[444](index=444&type=chunk)[446](index=446&type=chunk) Available-for-Sale Securities (as of December 31, 2021) | Security Type | Amortized Cost (Thousands) | Fair Value (Thousands) | | :------------------------------------------ | :------------------------- | :--------------------- | | U.S. Government-sponsored entities | $124,898 | $123,407 | | U.S. Treasury securities | $157,289 | $155,602 | | Mortgage-backed securities | $835,301 | $836,575 | | Corporate | $52,555 | $53,777 | | Small Business Administration loan pools | $16,568 | $16,475 | | State and local subdivisions | $138,404 | $141,606 | | **Total Available-for-Sale Securities** | **$1,325,015** | **$1,327,442** | - Total deposits increased by **$972.4 million (28.2%) to $4.42 billion** at December 31, 2021, with non-interest-bearing demand deposits showing significant growth (**57.2% YoY**)[343](index=343&type=chunk)[468](index=468&type=chunk) Deposit Composition (as of December 31) | Deposit Type | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :------------------------------- | :--------------- | :--------------- | :--------------- | | Non-interest-bearing Demand | $1,244,117 | $791,639 | $481,298 | | Interest-bearing Demand and NOW | $1,202,408 | $1,016,424 | $703,048 | | Savings and Money Market | $1,319,881 | $1,012,673 | $1,046,000 | | Time | $653,598 | $626,854 | $833,170 | | **Total Deposits** | **$4,420,004** | **$3,447,590** | **$3,063,516** | - The company utilizes various borrowings, including federal funds purchased, retail repurchase agreements, FHLB advances, and subordinated debt, to supplement deposits for funding lending and investing activities[478](index=478&type=chunk) [Liquidity and Capital Resources](index=84&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is primarily met by core deposits and asset maturities, supplemented by various borrowings, with the company maintaining strong capital ratios - Liquidity is primarily met by core deposits, security and loan maturities, and amortizing portfolios, supplemented by federal funds, retail repurchase agreements, brokered CDs, subordinated notes, and FHLB borrowings[488](index=488&type=chunk) - In 2021, operating and financing activities provided **$102.7 million** and **$191.9 million** in liquidity, respectively, while investing activities used **$315.3 million**, resulting in a **$20.7 million decrease in cash and cash equivalents**[491](index=491&type=chunk) - The company and Equity Bank maintained capital ratios in excess of all regulatory requirements at December 31, 2021, categorized as 'well capitalized' under prompt corrective action regulations[497](index=497&type=chunk)[499](index=499&type=chunk) - Stockholders' equity increased by **$93.0 million**, primarily due to the ASBI merger (**$84.7 million**) and comprehensive income (**$34.5 million**), partially offset by a CECL implementation adjustment and treasury stock purchases[500](index=500&type=chunk) [Non-GAAP Financial Measures](index=86&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like Tangible Book Value per Share and Efficiency Ratio to provide additional performance insights - The company uses non-GAAP financial measures such as Tangible Book Value per Common Share, Tangible Common Equity to Tangible Assets, Return on Average Tangible Common Equity, and Efficiency Ratio to provide additional insights into performance, excluding the effects of intangible assets and certain non-recurring items[501](index=501&type=chunk)[503](index=503&type=chunk)[508](index=508&type=chunk)[512](index=512&type=chunk)[515](index=515&type=chunk)[516](index=516&type=chunk) Tangible Book Value per Share (as of December 31) | Metric | 2021 ($) | 2020 ($) | 2019 ($) | | :----------------------------------- | :------- | :------- | :------- | | Book Value per Common Share | 29.87 | 28.04 | 30.95 | | Tangible Book Value per Common Share | 25.65 | 24.68 | 20.75 | Tangible Common Equity to Tangible Assets (as of December 31) | Metric | 2021 (%) | 2020 (%) | 2019 (%) | | :----------------------------------- | :------- | :------- | :------- | | Equity / Assets | 9.74% | 10.16% | 12.10% | | Tangible Common Equity to Tangible Assets | 8.48% | 9.05% | 8.45% | Return on Average Tangible Common Equity (Years Ended December 31) | Metric | 2021 (%) | 2020 (%) | 2019 (%) | | :----------------------------------- | :------- | :------- | :------- | | Return on Average Equity (ROAE) | 11.75% | (16.14)% | 5.52% | | Return on Average Tangible Common Equity (ROATCE) | 14.10% | 8.27% | 9.22% | Efficiency Ratio (Years Ended December 31) | Metric | 2021 (%) | 2020 (%) | 2019 (%) | | :--------------- | :------- | :------- | :------- | | Efficiency Ratio | 63.01% | 66.36% | 65.45% | Selected Financial Data (Years Ended December 31, 2021 vs. 2020) | Metric | 2021 (Thousands) | 2020 (Thousands) | Change (Thousands) | Change (%) | | :----------------------------------- | :--------------- | :--------------- | :----------------- | :--------- | | Net Income (Loss) | $52,480 | $(74,970) | $127,450 | 170.0% |\ | Net Interest Income | $142,579 | $132,652 | $9,927 | 7.5% |\ | Total Loans Held for Investment | $3,155,627 | $2,591,696 | $563,931 | 21.8% |\ | Total Deposits | $4,420,004 | $3,447,590 | $972,414 | 28.2% |\ | Total Assets | $5,137,631 | $4,013,356 | $1,124,275 | 28.0% |\ | Tangible Book Value per Common Share | $25.65 | $24.68 | $0.97 | 3.9% | - The significant increase in net income in 2021 was primarily due to a **$104.8 million goodwill impairment charge in 2020**, a **$32.7 million decrease in provision for loan losses**, and increased net interest income[370](index=370&type=chunk) - The company adopted the Current Expected Credit Loss (CECL) methodology effective January 1, 2021, resulting in a **$15.7 million increase in the allowance for credit losses** on loans held for investment and a **$12.4 million decrease in retained earnings**[359](index=359&type=chunk)[445](index=445&type=chunk)[672](index=672&type=chunk) [Quantitative and Qualitative Disclosure About Market Risk](index=89&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's primary market risk is interest rate volatility, managed by ALCO through balance sheet structuring and simulation analysis - The primary component of market risk is interest rate volatility, affecting income, expense, and market value of interest-earning assets and liabilities[521](index=521&type=chunk) - The Asset Liability Committee (ALCO) manages interest rate risk by structuring the balance sheet and using simulation analysis to monitor NII and EVE sensitivity to interest rate changes[523](index=523&type=chunk)[524](index=524&type=chunk) Simulated Immediate Change in Net Interest Income (12 Months) | Change in Prevailing Interest Rates | December 31, 2021 (%) | December 31, 2020 (%) | | :---------------------------------- | :-------------------- | :-------------------- | | +300 basis points | (4.4)% | (1.2)% | | +200 basis points | (2.4)% | 0.4% | | +100 basis points | (1.0)% | 1.0% | | 0 basis points | —% | —% | | -100 basis points | (4.4)% | (2.3)% | Simulated Immediate Change in Economic Value of Equity | Change in Prevailing Interest Rates | December 31, 2021 (%) | December 31, 2020 (%) | | :---------------------------------- | :-------------------- | :-------------------- | | +300 basis points | (2.8)% | 12.8% | | +200 basis points | 0.7% | 14.4% | | +100 basis points | 2.7% | 9.2% | | 0 basis points | —% | —% | | -100 basis points | (14.8)% | (21.2)% | [Financial Statements and Supplementary Data](index=91&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2021, 2020, and 2019, including the auditor's report and detailed notes [Report of Independent Registered Public Accounting Firm](index=99&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Crowe LLP provided an unqualified opinion on the financial statements and internal controls, highlighting CECL adoption as a critical audit matter - Crowe LLP provided an unqualified opinion on the consolidated financial statements and the effectiveness of internal control over financial reporting for Equity Bancshares, Inc. as of December 31, 2021[560](index=560&type=chunk)[561](index=561&type=chunk) - The adoption of ASC 326 (CECL) on January 1, 2021, for credit losses was highlighted as a critical audit matter due to the significant auditor judgment and effort required to evaluate management's subjective and complex judgments[562](index=562&type=chunk)[571](index=571&type=chunk)[573](index=573&type=chunk) [Consolidated Balance Sheets](index=103&type=section&id=Consolidated%20Balance%20Sheets) This section presents the company's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheet (as of December 31) | Asset/Liability/Equity | 2021 (Thousands) | 2020 (Thousands) | | :------------------------------- | :--------------- | :--------------- | | **ASSETS** | | | | Cash and Cash Equivalents | $259,954 | $280,698 | | Available-for-Sale Securities | $1,327,442 | $871,827 | | Loans, Net of Allowance | $3,107,262 | $2,557,987 | | Goodwill | $54,465 | $31,601 | | Total Assets | $5,137,631 | $4,013,356 | | **LIABILITIES** | | | | Total Deposits | $4,420,004 | $3,447,590 | | Subordinated Debt | $95,885 | $87,684 | | Total Liabilities | $4,637,000 | $3,605,707 | | **STOCKHOLDERS' EQUITY** | | | | Total Stockholders' Equity | $500,631 | $407,649 | [Consolidated Statements of Income](index=104&type=section&id=Consolidated%20Statements%20of%20Income) This section presents the company's consolidated statements of income, detailing revenues, expenses, and net income Consolidated Statements of Income (Years Ended December 31) | Income/Expense Item | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :----------------------------------- | :--------------- | :--------------- | :--------------- | | Total Interest and Dividend Income | $157,368 | $155,561 | $175,499 | | Total Interest Expense | $14,789 | $22,909 | $49,641 | | Net Interest Income | $142,579 | $132,652 | $125,858 | | Provision (Reversal) for Credit Losses | $(8,480) | $24,255 | $18,354 | | Total Non-Interest Income | $32,842 | $26,023 | $24,988 | | Total Non-Interest Expense | $119,465 | $208,990 | $99,635 | | Income (Loss) Before Income Tax | $64,436 | $(74,570) | $32,857 | | Provision for Income Taxes | $11,956 | $400 | $7,278 | | Net Income (Loss) | $52,480 | $(74,970) | $25,579 | | Basic Earnings (Loss) per Share | $3.49 | $(4.97) | $1.64 | | Diluted Earnings (Loss) per Share | $3.43 | $(4.97) | $1.61 | [Consolidated Statements of Comprehensive Income](index=105&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's consolidated statements of comprehensive income, including net income and other comprehensive income Consolidated Statements of Comprehensive Income (Years Ended December 31) | Item | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :----------------------------------------------------------------- | :--------------- | :--------------- | :--------------- | | Net Income (Loss) | $52,480 | $(74,970) | $25,579 | | Other Comprehensive Income (Loss), Net of Tax | $(18,005) | $19,784 | $4,864 | | **Comprehensive Income (Loss)** | **$34,475** | **$(55,186)** | **$30,443** | [Consolidated Statements of Stockholders' Equity](index=106&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section presents the company's consolidated statements of stockholders' equity, detailing changes in equity components Consolidated Statements of Stockholders' Equity (Years Ended December 31) | Item | Balance at Dec 31, 2018 (Thousands) | 2019 Changes (Thousands) | Balance at Dec 31, 2019 (Thousands) | 2020 Changes (Thousands) | Balance at Dec 31, 2020 (Thousands) | 2021 Changes (Thousands) | Balance at Dec 31, 2021 (Thousands) | | :--------------------------------- | :---------------------------------- | :----------------------- | :---------------------------------- | :----------------------- | :---------------------------------- | :----------------------- | :---------------------------------- | | Common Stock | $173 | $1 | $174 | $0 | $174 | $29 | $203 | | Additional Paid-In Capital | $379,085 | $3,650 | $382,731 | $4,089 | $386,820 | $92,042 | $478,862 | | Retained Earnings | $101,326 | $24,431 | $125,757 | $(74,970) | $50,787 | $37,537 | $88,324 | | Accumulated Other Comprehensive Income (Loss) | $(4,867) | $4,864 | $(3) | $19,784 | $19,781 | $(18,005) | $1,776 | | Treasury Stock | $(19,655) | $(10,867) | $(30,522) | $(19,348) | $(49,870) | $(18,664) | $(68,534) | | Employee Stock Loans | $(121) | $44 | $(77) | $34 | $(43) | $43 | $0 | | **Total Stockholders' Equity** | **$455,941** | **$22,123** | **$478,060** | **$(70,401)** | **$407,649** | **$92,982** | **$500,631** | [Consolidated Statements of Cash Flows](index=107&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's consolidated statements of cash flows, detailing cash movements from operating, investing, and financing activities Consolidated Statements of Cash Flows (Years Ended December 31) | Cash Flow Activity | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :--------------------------------- | :--------------- | :--------------- | :--------------- | | Net Cash Provided by Operating Activities | $102,698 | $43,621 | $48,521 | | Net Cash (Used in) Provided by Investing Activities | $(315,339) | $96,004 | $96,101 | | Net Cash Provided by (Used in) Financing Activities | $191,897 | $51,782 | $(248,149) |\ | Net Change in Cash and Cash Equivalents | $(20,744) | $191,407 | $(103,527) |\ | Ending Cash and Cash Equivalents | $259,954 | $280,698 | $89,291 | [Notes to Consolidated Financial Statements](index=109&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the company's accounting policies, business combinations, and financial instrument specifics [NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=109&type=section&id=NOTE%201%20%E2%80%93%20NATURE%20OF%20OPERATIONS%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note details the company's operations and significant accounting policies, including the adoption of CECL and ASU 2017-08 - Equity Bancshares, Inc. is a bank holding company operating through Equity Bank and EBAC, LLC, providing banking, mortgage banking, and financial services primarily in Arkansas, Kansas, Missouri, and Oklahoma[595](index=595&type=chunk)[597](index=597&type=chunk) - The company adopted ASU 2016-13 (CECL) effective January 1, 2021, changing the method for measuring credit losses for financial assets and off-balance-sheet exposures, resulting in a **$15.7 million increase in ACL on loans** and a **$12.4 million decrease in retained earnings**[672](index=672&type=chunk) - The CECL model utilizes a probability of default (PD) and loss given default (LGD) approach, incorporating macroeconomic factors and qualitative adjustments, with a **12-month reasonable and supportable forecast period**[626](index=626&type=chunk)[627](index=627&type=chunk) - The company also adopted ASU 2017-08, shortening the amortization period of certain callable debt securities held at a premium to the earliest call date, resulting in a **$1.148 million reduction in retained earnings**[674](index=674&type=chunk) [NOTE 2 – BUSINESS COMBINATIONS](index=119&type=section&id=NOTE%202%20%E2%80%93%20BUSINESS%20COMBINATIONS) This note details the company's business acquisitions, including ASBI and Security Bank branches in 2021, and Almena State Bank in 2020 - On October 1, 2021, the company acquired American State Bancshares, Inc. (ASBI) for **$8.4 million in cash** and **2,485,983 shares of Class A common stock**, resulting in **$22.2 million in goodwill**[682](index=682&type=chunk)[685](index=685&type=chunk) - On December 3, 2021, the company acquired three branches from Security Bank of Kansas City, resulting in **$0.7 million in goodwill**[687](index=687&type=chunk)[688](index=688&type=chunk) - On October 23, 2020, the company acquired assets and assumed deposits of Almena State Bank, resulting in a **gain on acquisition of $2.1 million**[689](index=689&type=chunk)[692](index=692&type=chunk) ASBI Acquisition: Assets Acquired and Liabilities Assumed (October 1, 2021) | Item | Amount (Thousands) | | :------------------------- | :----------------- | | Cash and Due from Banks | $97,724 | | Available-for-Sale Securities | $176,476 | | Loans | $441,884 | | Total Assets Acquired | $780,548 | | Deposits | $668,849 | | Total Liabilities Assumed | $709,557 | | Goodwill | $22,198 | [NOTE 3 – SECURITIES](index=123&type=section&id=NOTE%203%20%E2%80%93%20SECURITIES) This note details the company's available-for-sale securities portfolio, including unrealized losses and pledged securities Available-for-Sale Securities (as of December 31, 2021) | Security Type | Amortized Cost (Thousands) | Fair Value (Thousands) | | :------------------------------------------ | :------------------------- | :--------------------- | | U.S. Government-sponsored entities | $124,898 | $123,407 | | U.S. Treasury securities | $157,289 | $155,602 | | Mortgage-backed securities | $835,301 | $836,575 | | Corporate | $52,555 | $53,777 | | Small Business Administration loan pools | $16,568 | $16,475 | | State and political subdivisions | $138,404 | $141,606 | | **Total Available-for-Sale Securities** | **$1,325,015** | **$1,327,442** | - As of December 31, 2021, the company held **166 available-for-sale securities** in an unrealized loss position, but these losses were not recognized in income due to high credit quality, no intent to sell, and the expectation of recovery as securities approach maturity[700](index=700&type=chunk)[701](index=701&type=chunk) - The carrying value of securities pledged as collateral was approximately **$892.2 million** at December 31, 2021[697](index=697&type=chunk) [NOTE 4 – LOANS AND ALLOWANCE FOR CREDIT LOSSES](index=125&type=section&id=NOTE%204%20%E2%80%93%20LOANS%20AND%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) This note details the loan portfolio composition, allowance for credit losses, nonaccrual loans, and COVID-19 payment deferral programs Loan Portfolio by Type (as of December 31) | Loan Type | 2021 (Thousands) | 2020 (Thousands) | | :------------------------ | :--------------- | :--------------- | | Commercial Real Estate | $1,486,148 | $1,188,696 | | Commercial and Industrial | $567,497 | $734,495 | | Residential Real Estate | $638,087 | $381,958 | | Agricultural Real Estate | $198,330 | $133,693 | | Agricultural | $166,975 | $94,322 | | Consumer | $98,590 | $58,532 | | **Total Loans** | **$3,155,627** | **$2,591,696** | | Allowance for Loan Losses | $(48,365) | $(33,709) |\ | **Net Loans** | **$3,107,262** | **$2,557,987** | - The allowance for credit losses totaled **$48.4 million (1.53% of total loans)** at December 31, 2021, reflecting the adoption of CECL and management's estimate of expected credit losses over the contractual life of the loan portfolio[710](index=710&type=chunk)[717](index=717&type=chunk)[720](index=720&type=chunk) - As of December 31, 2021, **20 loans totaling $36.3 million** were participating in the COVID-19 payment deferral program, with all classified as unclassified (pass) credits[740](index=740&type=chunk)[741](index=741&type=chunk) Nonaccrual Loans (as of December 31, 2021) | Loan Type | Recorded Investment (Thousands) | Allowance for Loan Losses Allocated (Thousands) | | :------------------------ | :------------------------------ | :---------------------------------------------- | | Commercial Real Estate | $6,833 | $1,632 | | Commercial and Industrial | $4,593 | $1,800 | | Residential Real Estate | $4,646 | $888 | | Agricultural Real Estate | $2,738 | $637 | | Agricultural | $6,175 | $2,307 | | Consumer | $274 | $74 | | **Total** | **$29,361** | **$7,338** | [NOTE 5 – OTHER REAL ESTATE OWNED](index=133&type=section&id=NOTE%205%20%E2%80%93%20OTHER%20REAL%20ESTATE%20OWNED) This note details the activity and expenses related to other real estate owned, including transfers, sales, and valuation reserves Other Real Estate Owned Activity (Years Ended December 31) | Item | 2021 (Thousands) | 2020 (Thousands) | | :------------------------- | :--------------- | :--------------- | | Beginning Balance | $11,733 | $8,293 | | Transfers In | $2,222 | $10,729 | | Net (Loss) Gain on Sales | $462 | $835 | | Proceeds from Sales | $(4,732) | $(6,363) |\ | Additions to Valuation Reserve | $(162) | $(2,397) |\ | **Recorded Investment** | **$9,523** | **$11,733** | Other Real Estate Owned Expenses (Years Ended December 31) | Expense Item | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :----------------------------------------- | :--------------- | :--------------- | :--------------- | | Net Loss (Gain) on Sales | $(462) | $(835) | $10 |\ | Provision for Unrealized Losses | $162 | $2,397 | $250 | | Operating Expenses, Net of Rental Income | $651 | $748 | $638 | | **Total Other Real Estate Owned Expenses** | **$(188)** | **$2,310** | **$707** | [NOTE 6 – PREMISES AND EQUIPMENT](index=134&type=section&id=NOTE%206%20%E2%80%93%20PREMISES%20AND%20EQUIPMENT) This note details the company's premises and equipment, net of depreciation, and operating lease liabilities and costs Premises and Equipment, Net (as of December 31) | Category | 2021 (Thousands) | 2020 (Thousands) | | :----------------------------- | :--------------- | :--------------- | | Land | $21,217 | $20,113 | | Buildings and Improvements | $86,324 | $71,923 | | Furniture, Fixtures and Equipment | $23,215 | $19,928 | | Less: Accumulated Depreciation | $(26,718) | $(22,552) |\ | **Premises and Equipment, Net** | **$104,038** | **$89,412** | - As of December 31, 2021, the company had operating lease liabilities of **$5.9 million** and corresponding right-of-use assets of **$6.0 million**, primarily for land and building leases[755](index=755&type=chunk) Operating Lease Costs (Years Ended December 31) | Cost Type | 2021 (Thousands) | 2020 (Thousands) | | :-------------------- | :--------------- | :--------------- | | Operating Lease Cost | $586 | $728 | | Variable Lease Cost | $35 | $34 | | **Total Operating Lease Cost** | **$621** | **$762** | [NOTE 7 – GOODWILL AND CORE DEPOSIT INTANGIBLES](index=135&type=section&id=NOTE%207%20%E2%80%93%20GOODWILL%20AND%20CORE%20DEPOSIT%20INTANGIBLES) This note details goodwill and core deposit intangibles, including the annual impairment assessment and the **$104.8 million** impairment charge in 2020 - Goodwill results from business acquisitions and represents the excess of purchase price over fair value of net assets. It is assessed annually for impairment[649](index=649&type=chunk)[762](index=762&type=chunk) - As of December 31, 2021, management concluded no goodwill impairment was warranted, following a **$104.8 million non-cash impairment charge** recorded on September 30, 2020, due to economic market disruption and stock price movement[762](index=762&type=chunk) Goodwill and Core Deposit Intangibles (as of December 31) | Item | 2021 (Thousands) | 2020 (Thousands) | | :--------------------------------- | :--------------- | :--------------- | | Goodwill | $54,465 | $31,601 | | Core Deposit Intangibles | $14,879 | $16,057 | | **Total Goodwill and Intangibles** | **$69,344** | **$47,658** | [NOTE 8 – QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS](index=136&type=section&id=NOTE%208%20%E2%80%93%20QUALIFIED%20AFFORDABLE%20HOUSING%20PROJECT%20INVESTMENTS) This note details the company's investments in qualified affordable housing projects, including balances, unfunded commitments, and recognized expenses - The company invests in qualified affordable housing projects, with balances of **$21.7 million** at December 31, 2021, and unfunded commitments totaling **$17.7 million**[766](index=766&type=chunk) - In 2021, the company recognized **$1.1 million in amortization expense** and **$0.6 million in tax credits** from these investments[767](index=767&type=chunk) [NOTE 9 – DERIVATIVE FINANCIAL INSTRUMENTS](index=136&type=section&id=NOTE%209%20%E2%80%93%20DERIVATIVE%20FINANCIAL%20INSTRUMENTS) This note details the company's use of interest rate swaps for hedging and stand-alone derivatives, including notional balances and fair values - The company uses interest rate swaps as fair value hedges for commercial real estate loans, cash flow hedges for subordinated debentures (acquired from ASBI), and stand-alone derivatives to offer long-term fixed-rate loans to borrowers[768](index=768&type=chunk)[769](index=769&type=chunk)[770](index=770&type=chunk) Derivative Notional Balances and Fair Values (as of December 31, 2021) | Derivative Type | Notional Amount (Thousands) | Derivative Assets (Thousands) | Derivative Liabilities (Thousands) | | :-------------------------------------------- | :-------------------------- | :---------------------------- | :--------------------------------- | | Interest Rate Swaps (Hedging Instruments) | $26,663 | $— | $369 | | Interest Rate Swaps (Cash Flow Hedges) | $7,500 | $602 | $— | | Interest Rate Swaps (Stand-Alone Derivatives) | $150,780 | $4,419 | $5,184 | | **Total** | **$184,943** | **$5,021** | **$5,553** | Net Gains (Losses) on Derivatives and Hedging Activities (Years Ended December 31) | Item | 2021 (Thousands) | 2020 (Thousands) | 2019 (Thousands) | | :---------------------------------------- | :--------------- | :--------------- | :--------------- | | Derivatives Designated as Hedging Instruments | $28 | $— | $— | | Derivatives Not Designated as Hedging Instruments | $757 | $254 | $307 | | **Total Net Gains (Losses)** | **$785** | **$254** | **$307** | [NOTE 10 – DEPOSITS](index=138&type=section&id=NOTE%2010%20%E2%80%93%20DEPOSITS) This note details the company's deposit composition, including time deposits exceeding FDIC limits and the use of ICS and CDARS programs Deposit Composition (as of December 31) | Deposit Type | 2021 (Thousands) | 2020 (Thousands) | | :------------------------------- | :--------------- | :--------------- | | Non-interest-bearing Demand | $1,244,117 | $791,639 | | Interest-bearing Demand and NOW | $1,202,408 | $1,016,424 | | Savings and Money Market | $1,319,881 | $1,012,673 | | Time | $653,598 | $626,854 | | **Total Deposits** | **$4,420,004** | **$3,447,590** | - Time deposits exceeding the FDIC insurance limit of **$250,000** totaled **$233.5 million** at December 31, 2021[779](index=779&type=chunk) - The company utilizes Insured Cash Sweep (ICS) and Certificate of Deposit Account Registry Service (CDARS) programs to manage large deposits and ensure FDIC insurance coverage, with total reciprocal and brokered deposits of **$373.5 million** at December 31, 2021[780](index=780&type=chunk)[781](index=781&type=chunk)[783](index=783&type=chunk) [NOTE 11 – BORROWINGS](index=139&type=section&id=NOTE%2011%20%E2%80%93%20BORROWINGS) This note details the company's borrowings, including federal funds, repurchase agreements, FHLB advances, and bank stock loan facilities Federal Funds Purchased and Retail Repurchase Agreements (as of December 31) | Item | 2021 (Thousands) | 2020 (Thousands) | | :------------------------------- | :--------------- | :--------------- | | Federal Funds Purchased | $— | $— | | Retail Repurchase Agreements | $56,006 | $36,029 | - The company had no FHLB advances outstanding at December 31, 2021, but maintained undisbursed advance commitments (letters of credit) of **$17.0 million**[790](index=790&type=chunk)[791](index=791&type=chunk) - A bank stock loan facility, secured by Equity Bank stock, had no outstanding balance at December 31, 2021, and was renewed in February 2022 with a decreased maximum borrowing amount of **$25.0 million**[793](index=793&type=chunk)[794](index=794&type=chunk)[795](index=795&type=chunk) [NOTE 12 – SUBORDINATED DEBT](index=140&type=

Exhibit 99.2 Fourth Quarter Earnings Presentation January 26, 2022 Forward Looking Statements This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity's management with respect to, among other things, future events and Equity's financial performance. These statements are often, but not always, mad ...