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

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

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

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

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

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 ...