EQBK Equity Bancshares Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 16, 2024

 

EQUITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Kansas	001-37624	72-1532188
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
7701 East Kellogg Drive, Suite 300 Wichita, KS		67207
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: 316.612.6000

 

Former name or former address, if changed since last report: Not Applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Class A, Common Stock, par value $0.01 per share	Trading Symbol EQBK	Name of each exchange on which registered New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

☐ Emerging growth company

 

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

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Item 2.02 Results of Operations and Financial Condition.

 

On July 16, 2024, Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 and is incorporated by reference herein.

 

The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

Item 7.01 Regulation FD Disclosure.

 

The Company intends to hold an investor call and webcast to discuss its financial results for the second quarter ended June 30, 2024, on Wednesday, July 17, 2024, at 9:00 a.m. Central Time. The Company’s presentation to analysts and investors contains additional information about the Company’s financial results for the second quarter ended June 30, 2024, and is furnished as Exhibit 99.2 and is incorporated by reference herein.

 

The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.		Description
99.1		Earnings Press Release, Dated July 16, 2024
99.2		Investor Presentation
104		Cover Page Interactive Data File

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Equity Bancshares, Inc.
Date: July 16, 2024	By: /s/ Chris M. Navratil
	Chris M. Navratil
	Executive Vice President and Chief Financial Officer

 

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Equity Bancshares, Inc. Second Quarter Results Highlighted by Record Net Interest Income and Net Interest Margin Expansion

Reports NIM of 3.94%, Announces Merger with KansasLand Bancshares, Inc., Adding to Kansas Franchise

 

WICHITA, Kansas, July 16, 2024 (BUSINESSWIRE) – Equity Bancshares, Inc. (NYSE: EQBK), (“Equity”, “the Company”, “we,” “us,” “our”), the Wichita-based holding company of Equity Bank, reported net income of $11.7 million or $0.76 earnings per diluted share for the quarter ended June 30, 2024. Adjusting to exclude $2.3 million in costs associated with mergers and $1.7 million in costs associated with the surrender and re-positioning of bank owned life insurance (“BOLI”), net income was $15.3 million or $0.99 per diluted share.

 

“Our Company realized another excellent quarter driven by a continued increase in margin," said Brad S. Elliott, Chairman and CEO of Equity. "Our team continued to capitalize on opportunities to enhance customer relationships and build stockholder value as we look to leverage our balance sheet position to grow our franchise."

"In addition, during the quarter, our team effectively merged core systems following the Bank of Kirksville transaction while also analyzing, negotiating, and subsequently closing our acquisition of KansasLand Bancshares, Inc.," Mr. Elliott said. "We continue to be positioned to facilitate strategic M&A. We have the teams, the processes and the experience to be the preferred consolidation partner in our geography."

 

Notable Items:

 

 

Financial Results for the Quarter Ended June 30, 2024

 

Net income allocable to common stockholders was $11.7 million, or $0.76 per diluted share. Excluding merger expenses and the costs associated with repositioning a portion of our BOLI portfolio, net income was $15.3 million, or $0.99 per diluted share. Excluding the impact of the merger expenses and opening balance sheet provisioning for Bank of Kirksville balances, operating net income for the previous quarter was $16.1 million. The drivers of the periodic change are discussed in detail in the following sections.

 

Net Interest Income

 

Net interest income was $46.5 million for the period, as compared to $44.2 million for the three months ended March 31, 2024, the increase was driven by increasing average assets as well as a positive trend in margin. Net interest margin increased to 3.94% from 3.75% as the yield on interest-earning assets increased 28 basis points to 6.37% and the cost of

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interest-bearing deposits remained materially consistent at 2.78%. Total cost of deposits declined during the quarter to 2.14%, while utilization of debt and associated costs increased. Total cost of interest-bearing liabilities expanded 10 bps to 3.09%.

 

The earning asset improvement was driven by the continued increase in originated and re-priced loan coupons, loan and investment assets added through the Bank of Kirksville merger and the expiration of a receive-fixed swap during the quarter. Deposits acquired from the Bank of Kirksville contributed to maintaining cost of interest-bearing deposits and dropping total cost of deposits.

 

Provision for Credit Losses

 

During the quarter, there was a provision of $265 thousand compared to a provision of $1.0 million in the previous quarter. The provision was attributable to charge-offs realized during the period. The Company continues to estimate the allowance for credit loss with assumptions that anticipate slower prepayment rates and continued market disruption caused by elevated inflation, supply chain issues and the impact of monetary policy on consumers and businesses. During the quarter, we realized net charge-offs of $1.2 million as compared to $667 thousand for the previous quarter.

 

Non-Interest Income

 

Total non-interest income was $9.0 million for the quarter, as compared to $11.7 million for the three months ended March 31, 2024. The previous quarter included $1.2 million in gain on acquisition and $2.3 million in gains on resolution of special assets that did not repeat in the current quarter. Excluding these items non-interest income increased $777 thousand during the quarter, driven by increased service fee revenue including deposit services, treasury, debit card, credit card, insurance and wealth management.

 

Non-Interest Expense

 

Total non-interest expense for the quarter was $38.9 million as compared to $37.1 million for the previous quarter. Adjusting for merger expenses in both periods, the increase quarter over quarter was $1.0 million driven by the addition of Bank of Kirksville, including $320 thousand in intangible amortization as well as additional salary, technology and facility expenses.

 

The conversion of systems following the acquisition of Bank of Kirksville was completed in the second quarter.

 

Income Tax Expense

The effective tax rate for the quarter was 28.1% as compared to 20.8% for the quarter ended March 31, 2024. The increase in rate during the quarter was the result of an $11.5 million tax gain and related penalty recognized in our annual effective tax rate due to the surrender of BOLI. The impact of this transaction was partially offset by tax benefit related to a new investment in tax credit structures made by the Company in the quarter. The tax rate in the second quarter, normalized to exclude the impact of the BOLI surrender, would have been 17.5%.

 

Loans, Total Assets and Funding

Loans held for investment were $3.5 billion at June 30, 2024, decreasing $27.8 million during the quarter. Total assets were $5.2 billion as of the end of the period, increasing $6.5 million during the quarter.

Total deposits were $4.3 billion at June 30, 2024, decreasing $29.6 million from the previous quarter end. Of the total deposit balance, non-interest-bearing accounts comprise approximately 22.7%. Total Federal Home Loan Bank borrowings were $250.3 million as of the end of the quarter, up $30.4 million as compared to March 31, 2024.

 

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Asset Quality

 

As of June 30, 2024, Equity’s allowance for credit losses to total loans remained materially consistent at 1.3% as compared to March 31, 2024. Nonperforming assets were $27.2 million as of June 30, 2024, or 0.5% of total assets, compared to $25.4 million at March 31, 2024, or 0.5% of total assets. Non-accrual loans were $26.6 million at June 30, 2024, as compared to $24.2 million at March 31, 2024. Total classified assets, including loans rated special mention or worse, other real estate owned, excluding previous branch locations, and other repossessed assets were $48.4 million, or 8.47% of regulatory capital, up from $39.2 million, or 6.9% of regulatory capital as of March 31, 2024.

 

Capital

 

Quarter over quarter, book capital increased $4.7 million to $461.4 million and tangible capital increased $5.9 million to $390.7 million. The increase in capital is primarily due to earnings, partially offset by treasury share purchases of $5.2 million, increase in unrealized loss on bonds and cash flow hedges of $1.2 million and dividends declared of $1.9 million. Tangible capital was also positively affected by the amortization of core deposit intangibles during the quarter.

The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 11.1%, the total capital to risk-weighted assets was 14.6% and the total leverage ratio was 9.1% at June 30, 2024. At March 31, 2024, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 11.1%, the total capital to risk-weighted assets ratio was 14.7% and the total leverage ratio was 9.1%.

Equity Bank's ratio of common equity tier 1 capital to risk-weighted assets was 12.9%, total capital to risk-weighted assets was 14.0% and the total leverage ratio was 10.1% at June 30, 2024. At March 31, 2024, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.2%, the ratio of total capital to risk-weighted assets was 14.3% and the total leverage ratio was 10.2%.

 

Non-GAAP Financial Measures

 

In addition to evaluating the Company’s results of operations in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial condition and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information.

 

The efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. In other words, for every dollar of total revenue recognized, how much of that dollar is expended. To improve the comparability of the ratio to our peers, non-core items are excluded. To improve transparency and acknowledging that banks are not consistent in their definition of the efficiency ratio, we include our calculation of this non-GAAP measure.

 

Return on average assets before income tax provision and provision for loan losses is a measure that the Company uses to understand fundamental operating performance before these expenses. Used as a ratio relative to average assets, we believe it demonstrates “core” performance and can be viewed as an alternative measure of how efficiently the Company services its asset base. Used as a ratio relative to average equity, it can function as an alternative measure of the Company’s earnings performance in relationship to its equity.

 

Tangible common equity and related measures are non-GAAP financial measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These financial measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently the Company is deploying its common equity. Companies that are able to demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors.

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The Company believes that disclosing these non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included in Table 6 in the following press release tables.

 

Conference Call and Webcast

 

Equity’s Chairman and Chief Executive Officer, Brad Elliott, and Chief Financial Officer, Chris Navratil, will hold a conference call and webcast to discuss second quarter results on Wednesday, July 17, 2024, at 10 a.m. eastern time or 9 a.m. central time.

 

A live webcast of the call will be available on the Company’s website at investor.equitybank.com. To access the call by phone, please go to this registration link, and you will be provided with dial in details. Investors, news media, and other participants are encouraged to dial into the conference call ten minutes ahead of the scheduled start time.

 

A replay of the call and webcast will be available two hours following the close of the call until August 1, 2024, accessible at investor.equitybank.com.

 

About Equity Bancshares, Inc.

Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NYSE National, Inc. under the symbol “EQBK.” Learn more at www.equitybank.com.

 

Special Note Concerning 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 through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “positioned,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive.

 

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 7, 2024, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results

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may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties arise from time to time and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue.

 

Investor Contact:

 

Brian J. Katzfey

VP, Director of Corporate Development and Investor Relations

Equity Bank

(316) 858-3128

bkatzfey@equitybank.com

 

Media Contact:

 

John J. Hanley

Chief Marketing Officer

Equity Bancshares, Inc.

(913) 583-8004

jhanley@equitybank.com

 

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Unaudited Financial Tables

 

 

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TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(Dollars in thousands)

 

		Three months ended June 30,								Six months ended June 30,
		2024				2023				2024				2023
Interest and dividend income
Loans, including fees		$	61,518			$	52,748			$	120,347			$	101,129
Securities, taxable			10,176				5,813				20,053				11,760
Securities, nontaxable			401				568				792				1,237
Federal funds sold and other			3,037				2,127				5,707				3,253
Total interest and dividend income			75,132				61,256				146,899				117,379
Interest expense
Deposits			22,662				17,204				45,517				31,025
Federal funds purchased and retail repurchase agreements			306				192				632				387
Federal Home Loan Bank advances			3,789				953				4,933				1,971
Federal Reserve Bank borrowings			—				1,528				1,361				1,663
Subordinated debt			1,899				1,950				3,798				3,794
Total interest expense			28,656				21,827				56,241				38,840
Net interest income			46,476				39,429				90,658				78,539
Provision (reversal) for credit losses			265				298				1,265				(68	)
Net interest income after provision (reversal) for credit losses			46,211				39,131				89,393				78,607
Non-interest income
Service charges and fees			2,541				2,653				5,110				5,198
Debit card income			2,621				2,653				5,068				5,207
Mortgage banking			245				213				433				301
Increase in value of bank-owned life insurance			911				757				1,739				2,340
Net gain on acquisition and branch sales			60				—				1,300				—
Net gains (losses) from securities transactions			(27	)			(1,322	)			16				(1,290	)
Other			2,607				1,996				7,023				3,794
Total non-interest income			8,958				6,950				20,689				15,550
Non-interest expense
Salaries and employee benefits			17,827				15,237				35,924				31,929
Net occupancy and equipment			3,787				2,940				7,322				5,819
Data processing			5,036				4,493				9,864				8,409
Professional fees			1,778				1,645				3,170				3,029
Advertising and business development			1,291				1,249				2,529				2,408
Telecommunications			572				516				1,227				1,001
FDIC insurance			590				515				1,161				875
Courier and postage			620				463				1,226				921
Free nationwide ATM cost			531				524				1,025				1,049
Amortization of core deposit intangibles			1,218				918				2,117				1,836
Loan expense			195				136				304				253
Other real estate owned			17				71				(67	)			190
Merger expenses			2,287				—				3,843				—
Other			3,122				4,423				6,378				8,640
Total non-interest expense			38,871				33,130				76,023				66,359
Income (loss) before income tax			16,298				12,951				34,059				27,798
Provision for income taxes			4,582				1,495				8,275				4,019
Net income (loss) and net income (loss) allocable to common stockholders		$	11,716			$	11,456			$	25,784			$	23,779
Basic earnings (loss) per share		$	0.77			$	0.74			$	1.68			$	1.52
Diluted earnings (loss) per share		$	0.76			$	0.74			$	1.66			$	1.51
Weighted average common shares			15,248,703				15,468,378				15,337,206				15,662,515
Weighted average diluted common shares			15,377,980				15,554,255				15,473,386				15,789,061

 

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TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share data)
		As of and for the three months ended
		June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023				June 30, 2023
Interest and dividend income
Loans, including fees		$	61,518			$	58,829			$	54,932			$	55,152			$	52,748
Securities, taxable			10,176				9,877				6,417				5,696				5,813
Securities, nontaxable			401				391				354				369				568
Federal funds sold and other			3,037				2,670				2,591				3,822				2,127
Total interest and dividend income			75,132				71,767				64,294				65,039				61,256
Interest expense
Deposits			22,662				22,855				20,074				19,374				17,204
Federal funds purchased and retail repurchase agreements			306				326				298				246				192
Federal Home Loan Bank advances			3,789				1,144				1,005				968				953
Federal Reserve Bank borrowings			—				1,361				1,546				1,546				1,528
Subordinated debt			1,899				1,899				1,904				1,893				1,950
Total interest expense			28,656				27,585				24,827				24,027				21,827
Net interest income			46,476				44,182				39,467				41,012				39,429
Provision (reversal) for credit losses			265				1,000				711				1,230				298
Net interest income after provision (reversal) for credit losses			46,211				43,182				38,756				39,782				39,131
Non-interest income
Service charges and fees			2,541				2,569				2,299				2,690				2,653
Debit card income			2,621				2,447				2,524				2,591				2,653
Mortgage banking			245				188				125				226				213
Increase in value of bank-owned life insurance			911				828				925				794				757
Net gain on acquisition and branch sales			60				1,240				—				—				—
Net gains (losses) from securities transactions			(27	)			43				(50,618	)			(1	)			(1,322	)
Other			2,607				4,416				1,331				2,435				1,996
Total non-interest income			8,958				11,731				(43,414	)			8,735				6,950
Non-interest expense
Salaries and employee benefits			17,827				18,097				16,598				15,857				15,237
Net occupancy and equipment			3,787				3,535				3,244				3,262				2,940
Data processing			5,036				4,828				4,471				4,553				4,493
Professional fees			1,778				1,392				1,413				1,312				1,645
Advertising and business development			1,291				1,238				1,598				1,419				1,249
Telecommunications			572				655				460				502				516
FDIC insurance			590				571				660				660				515
Courier and postage			620				606				577				548				463
Free nationwide ATM cost			531				494				508				516				524
Amortization of core deposit intangibles			1,218				899				739				799				918
Loan expense			195				109				155				132				136
Other real estate owned			17				(84	)			224				128				71
Merger expenses			2,287				1,556				297				—				—
Other			3,122				3,256				4,054				4,556				4,423
Total non-interest expense			38,871				37,152				34,998				34,244				33,130
Income (loss) before income tax			16,298				17,761				(39,656	)			14,273				12,951
Provision for income taxes (benefit)			4,582				3,693				(11,357	)			1,932				1,495
Net income (loss) and net income (loss) allocable to common stockholders		$	11,716			$	14,068			$	(28,299	)		$	12,341			$	11,456
Basic earnings (loss) per share		$	0.77			$	0.91			$	(1.84	)		$	0.80			$	0.74
Diluted earnings (loss) per share		$	0.76			$	0.90			$	(1.84	)		$	0.80			$	0.74
Weighted average common shares			15,248,703				15,425,709				15,417,200				15,404,992				15,468,378
Weighted average diluted common shares			15,377,980				15,569,225				15,417,200				15,507,172				15,554,255

 

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TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

		June 30,  2024				March 31,  2024				December 31, 2023				September 30, 2023				June 30, 2023
ASSETS
Cash and due from banks		$	244,321			$	217,611			$	363,289			$	183,404			$	262,604
Federal funds sold			15,945				17,407				15,810				15,613				15,495
Cash and cash equivalents			260,266				235,018				379,099				199,017				278,099
Available-for-sale securities			1,042,176				1,091,717				919,648				1,057,009				1,094,748
Held-to-maturity securities			5,226				2,205				2,209				2,212				2,216
Loans held for sale			1,959				1,311				476				627				2,456
Loans, net of allowance for credit losses(1)			3,410,920				3,437,714				3,289,381				3,237,932				3,278,126
Other real estate owned, net			2,989				1,465				1,833				3,369				4,362
Premises and equipment, net			114,264				116,792				112,632				110,271				106,186
Bank-owned life insurance			130,326				125,693				124,865				124,245				123,451
Federal Reserve Bank and Federal Home Loan Bank stock			33,171				27,009				20,608				20,780				21,129
Interest receivable			27,381				27,082				25,497				23,621				21,360
Goodwill			53,101				53,101				53,101				53,101				53,101
Core deposit intangibles, net			16,636				17,854				7,222				7,961				8,760
Other			147,102				102,075				98,021				105,122				100,889
Total assets		$	5,245,517			$	5,239,036			$	5,034,592			$	4,945,267			$	5,094,883
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Demand		$	984,872			$	981,623			$	898,129			$	936,217			$	978,968
Total non-interest-bearing deposits			984,872				981,623				898,129				936,217				978,968
Demand, savings and money market			2,560,091				2,574,871				2,483,807				2,397,003				2,397,524
Time			796,474				814,532				763,519				748,950				854,458
Total interest-bearing deposits			3,356,565				3,389,403				3,247,326				3,145,953				3,251,982
Total deposits			4,341,437				4,371,026				4,145,455				4,082,170				4,230,950
Federal funds purchased and retail repurchase agreements			38,031				43,811				43,582				39,701				44,770
Federal Home Loan Bank advances and Federal Reserve Bank borrowings			250,306				219,931				240,000				240,000				240,000
Subordinated debt			97,196				97,058				96,921				96,787				96,653
Contractual obligations			23,770				18,493				19,315				29,019				29,608
Interest payable and other liabilities			33,342				31,941				36,459				39,460				34,467
Total liabilities			4,784,082				4,782,260				4,581,732				4,527,137				4,676,448
Commitments and contingent liabilities
Stockholders’ equity
Common stock			208				208				207				207				207
Additional paid-in capital			491,709				490,533				489,187				488,137				487,225
Retained earnings			163,068				153,201				141,006				171,188				160,715
Accumulated other comprehensive income (loss), net of tax			(62,005	)			(60,788	)			(57,920	)			(122,047	)			(110,225	)
Treasury stock			(131,545	)			(126,378	)			(119,620	)			(119,355	)			(119,487	)
Total stockholders’ equity			461,435				456,776				452,860				418,130				418,435
Total liabilities and stockholders’ equity		$	5,245,517			$	5,239,036			$	5,034,592			$	4,945,267			$	5,094,883
(1) Allowance for credit losses		$	43,487			$	44,449			$	43,520			$	44,186			$	44,544

 

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TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
(Dollars in thousands, except per share data)
		As of and for the three months ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2024				2024				2023				2023				2023
Loans Held For Investment by Type
Commercial real estate		$	1,793,545			$	1,797,192			$	1,759,855			$	1,721,761			$	1,764,460
Commercial and industrial			663,718				649,035				598,327				585,129				583,664
Residential real estate			572,523				581,988				556,328				558,188				560,389
Agricultural real estate			219,226				198,291				196,114				205,865				202,317
Agricultural			104,341				149,312				118,587				103,352				104,510
Consumer			101,054				106,345				103,690				107,823				107,330
Total loans held-for-investment			3,454,407				3,482,163				3,332,901				3,282,118				3,322,670
Allowance for credit losses			(43,487	)			(44,449	)			(43,520	)			(44,186	)			(44,544	)
Net loans held for investment		$	3,410,920			$	3,437,714			$	3,289,381			$	3,237,932			$	3,278,126
Asset Quality Ratios
Allowance for credit losses on loans to total loans			1.26	%			1.28	%			1.31	%			1.35	%			1.34	%
Past due or nonaccrual loans to total loans			1.15	%			1.10	%			1.10	%			1.03	%			0.78	%
Nonperforming assets to total assets			0.52	%			0.49	%			0.53	%			0.42	%			0.31	%
Nonperforming assets to total loans plus other     real estate owned			0.79	%			0.73	%			0.79	%			0.63	%			0.47	%
Classified assets to bank total regulatory capital			8.47	%			6.85	%			7.09	%			6.27	%			7.94	%
Selected Average Balance Sheet Data (QTD Average)
Investment securities		$	1,065,979			$	1,074,101			$	985,591			$	1,085,905			$	1,155,971
Total gross loans receivable			3,459,476				3,452,553				3,293,755				3,281,483				3,337,497
Interest-earning assets			4,745,713				4,742,200				4,480,279				4,635,384				4,678,744
Total assets			5,196,258				5,152,915				4,892,712				5,046,179				5,064,912
Interest-bearing deposits			3,275,765				3,319,907				3,092,637				3,206,300				3,226,965
Borrowings			450,178				390,166				391,691				385,125				385,504
Total interest-bearing liabilities			3,725,943				3,710,073				3,484,328				3,591,425				3,612,469
Total deposits			4,250,843				4,254,883				4,019,362				4,177,332				4,204,334
Total liabilities			4,740,936				4,692,671				4,469,505				4,619,919				4,640,050
Total stockholders' equity			455,322				460,244				423,207				426,260				424,862
Tangible common equity*			383,899				398,041				361,451				363,625				361,409
Performance ratios
Return on average assets (ROAA) annualized			0.91	%			1.10	%			(2.29	)%			0.97	%			0.91	%
Return on average assets before income tax and    provision for loan losses*			1.28	%			1.46	%			(3.16	)%			1.22	%			1.05	%
Return on average equity (ROAE) annualized			10.35	%			12.29	%			(26.53	)%			11.49	%			10.82	%
Return on average equity before income tax and    provision for loan losses*			14.63	%			16.39	%			(36.51	)%			14.43	%			12.51	%
Return on average tangible common equity    (ROATCE) annualized*			13.31	%			14.96	%			(30.39	)%			14.18	%			13.55	%
Yield on loans annualized			7.15	%			6.85	%			6.62	%			6.67	%			6.34	%
Cost of interest-bearing deposits annualized			2.78	%			2.77	%			2.58	%			2.40	%			2.14	%
Cost of total deposits annualized			2.14	%			2.16	%			1.98	%			1.84	%			1.64	%
Net interest margin annualized			3.94	%			3.75	%			3.49	%			3.51	%			3.38	%
Efficiency ratio*			66.03	%			65.16	%			74.35	%			68.83	%			69.44	%
Non-interest income / average assets			0.69	%			0.92	%			(3.52	)%			0.69	%			0.55	%
Non-interest expense / average assets			3.01	%			2.90	%			2.84	%			2.69	%			2.62	%
Capital Ratios
Tier 1 Leverage Ratio			9.14	%			9.10	%			9.46	%			9.77	%			9.54	%
Common Equity Tier 1 Capital Ratio			11.12	%			11.14	%			11.74	%			12.65	%			12.23	%
Tier 1 Risk Based Capital Ratio			11.70	%			11.73	%			12.36	%			13.28	%			12.84	%
Total Risk Based Capital Ratio			14.61	%			14.71	%			15.48	%			16.42	%			15.96	%

---

Total stockholders' equity to total assets			8.80	%			8.72	%			8.99	%			8.46	%			8.21	%
Tangible common equity to tangible assets*			7.55	%			7.45	%			7.87	%			7.29	%			7.06	%
Dividend payout ratio			15.79	%			13.31	%			(6.65	)%			15.13	%			13.53	%
Book value per common share		$	30.36			$	29.80			$	29.35			$	27.13			$	27.18
Tangible book value per common share*		$	25.70			$	25.10			$	25.37			$	23.09			$	23.08
Tangible book value per diluted common share*		$	25.44			$	24.87			$	25.05			$	22.96			$	22.98
* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GGAP financial measures, see Table 8. Non-GAAP Financial Measures.

 

 

 

 

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TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)

(Dollars in thousands)

	For six months ended												For six months ended
	June 30, 2024												June 30, 2023
	Average Outstanding Balance				Interest Income/ Expense				Average Yield/Rate(3)(4)				Average Outstanding Balance				Interest Income/ Expense				Average Yield/Rate(3)(4)
Interest-earning assets
Loans (1)
Commercial and industrial	$	634,879			$	25,194				7.98	%		$	584,081			$	20,519				7.08	%
Commercial real estate		1,425,143				49,142				6.93	%			1,324,010				40,987				6.24	%
Real estate construction		378,815				16,618				8.82	%			434,793				14,926				6.92	%
Residential real estate		580,382				13,024				4.51	%			568,710				11,848				4.20	%
Agricultural real estate		201,520				7,412				7.40	%			202,742				6,501				6.47	%
Agricultural		129,167				5,493				8.55	%			100,795				3,183				6.37	%
Consumer		106,107				3,464				6.57	%			106,546				3,165				5.99	%
Total loans		3,456,013				120,347				7.00	%			3,321,677				101,129				6.14	%
Securities
Taxable securities		1,008,742				20,053				4.00	%			1,076,108				11,760				2.20	%
Nontaxable securities		61,298				792				2.60	%			94,538				1,237				2.64	%
Total securities		1,070,040				20,845				3.92	%			1,170,646				12,997				2.24	%
Federal funds sold and other		217,902				5,707				5.27	%			152,747				3,253				4.29	%
Total interest-earning assets	$	4,743,955				146,899				6.23	%		$	4,645,070				117,379				5.10	%
Interest-bearing liabilities
Demand, savings and money market deposits	$	2,525,710				31,605				2.52	%		$	2,336,791				18,957				1.64	%
Time deposits		772,126				13,912				3.62	%			894,446				12,068				2.72	%
Total interest-bearing deposits		3,297,836				45,517				2.78	%			3,231,237				31,025				1.94	%
FHLB advances		208,160				4,933				4.77	%			95,497				1,971				4.16	%
Other borrowings		212,013				5,791				5.48	%			221,601				5,844				5.32	%
Total interest-bearing liabilities	$	3,718,009				56,241				3.04	%		$	3,548,335				38,840				2.21	%
Net interest income					$	90,658											$	78,539
Interest rate spread										3.19	%											2.89	%
Net interest margin (2)										3.84	%											3.41	%
(1) Average loan balances include nonaccrual loans.
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.
(3) Tax exempt income is not included in the above table on a tax-equivalent basis.
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts.

 

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TABLE 6. QUARTER-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited)

(Dollars in thousands)

 

	For the three months ended												For the three months ended
	June 30, 2024												June 30, 2023
	Average Outstanding Balance				Interest Income/ Expense				Average Yield/Rate(3)(4)				Average Outstanding Balance				Interest Income/ Expense				Average Yield/Rate(3)(4)
Interest-earning assets
Loans (1)
Commercial and industrial	$	635,123			$	12,782				8.09	%		$	590,634			$	10,885				7.39	%
Commercial real estate		1,401,109				24,541				7.04	%			1,303,520				20,875				6.42	%
Real estate construction		402,831				8,843				8.83	%			465,231				8,231				7.10	%
Residential real estate		580,338				6,563				4.55	%			567,297				6,048				4.28	%
Agricultural real estate		206,018				3,944				7.70	%			202,584				3,387				6.71	%
Agricultural		127,298				3,102				9.80	%			101,333				1,704				6.74	%
Consumer		106,759				1,743				6.57	%			106,898				1,618				6.07	%
Total loans		3,459,476				61,518				7.15	%			3,337,497				52,748				6.34	%
Securities
Taxable securities		1,006,018				10,176				4.07	%			1,068,653				5,813				2.18	%
Nontaxable securities		59,961				401				2.70	%			87,318				568				2.61	%
Total securities		1,065,979				10,577				3.99	%			1,155,971				6,381				2.21	%
Federal funds sold and other		220,258				3,037				5.54	%			185,276				2,127				4.61	%
Total interest-earning assets	$	4,745,713				75,132				6.37	%		$	4,678,744				61,256				5.25	%
Interest-bearing liabilities
Demand, savings and money market deposits	$	2,530,899				15,946				2.53	%		$	2,323,685				10,503				1.81	%
Time deposits		744,866				6,716				3.63	%			903,280				6,701				2.98	%
Total interest-bearing deposits		3,275,765				22,662				2.78	%			3,226,965				17,204				2.14	%
FHLB advances		302,972				3,789				5.03	%			101,845				953				3.75	%
Other borrowings		147,206				2,205				6.03	%			283,659				3,670				5.19	%
Total interest-bearing liabilities	$	3,725,943				28,656				3.09	%		$	3,612,469				21,827				2.42	%
Net interest income					$	46,476											$	39,429
Interest rate spread										3.28	%											2.83	%
Net interest margin (2)										3.94	%											3.38	%
(1) Average loan balances include nonaccrual loans.
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.
(3) Tax exempt income is not included in the above table on a tax-equivalent basis.
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts.

 

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TABLE 7. QUARTER-OVER-QUARTER NET INTEREST INCOME ANALYSIS (Unaudited)

(Dollars in thousands)

	For the three months ended												For the three months ended
	June 30, 2024												March 31, 2024
	Average Outstanding Balance				Interest Income/ Expense				Average Yield/Rate(3)(4)				Average Outstanding Balance				Interest Income/ Expense				Average Yield/Rate(3)(4)
Interest-earning assets
Loans (1)
Commercial and industrial	$	635,123			$	12,782				8.09	%		$	634,637			$	12,412				7.87	%
Commercial real estate		1,401,109				24,541				7.04	%			1,449,177				24,601				6.83	%
Real estate construction		402,831				8,843				8.83	%			354,801				7,775				8.81	%
Residential real estate		580,338				6,563				4.55	%			580,426				6,461				4.48	%
Agricultural real estate		206,018				3,944				7.70	%			197,023				3,468				7.08	%
Agricultural		127,298				3,102				9.80	%			131,035				2,391				7.34	%
Consumer		106,759				1,743				6.57	%			105,454				1,721				6.56	%
Total loans		3,459,476				61,518				7.15	%			3,452,553				58,829				6.85	%
Securities
Taxable securities		1,006,018				10,176				4.07	%			1,011,466				9,877				3.93	%
Nontaxable securities		59,961				401				2.70	%			62,635				391				2.51	%
Total securities		1,065,979				10,577				3.99	%			1,074,101				10,268				3.84	%
Federal funds sold and other		220,258				3,037				5.54	%			215,546				2,670				4.98	%
Total interest-earning assets	$	4,745,713				75,132				6.37	%		$	4,742,200				71,767				6.09	%
Interest-bearing liabilities
Demand savings and money market deposits	$	2,530,899				15,946				2.53	%		$	2,520,521				15,660				2.50	%
Time deposits		744,866				6,716				3.63	%			799,386				7,195				3.62	%
Total interest-bearing deposits		3,275,765				22,662				2.78	%			3,319,907				22,855				2.77	%
FHLB advances		302,972				3,789				5.03	%			113,348				1,144				4.06	%
Other borrowings		147,206				2,205				6.03	%			276,818				3,586				5.21	%
Total interest-bearing liabilities	$	3,725,943				28,656				3.09	%		$	3,710,073				27,585				2.99	%
Net interest income					$	46,476											$	44,182
Interest rate spread										3.28	%											3.10	%
Net interest margin (2)										3.94	%											3.75	%
(1) Average loan balances include nonaccrual loans.
(2) Net interest margin is calculated by dividing annualized net interest income by average interest-earning assets for the period.
(3) Tax exempt income is not included in the above table on a tax-equivalent basis.
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts.

 

 

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TABLE 8. NON-GAAP FINANCIAL MEASURES (Unaudited)
(Dollars in thousands, except per share data)
		As of and for the three months ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2024				2024				2023				2023				2023
Total stockholders' equity		$	461,435			$	456,776			$	452,860			$	418,130			$	418,435
Less: goodwill			53,101				53,101				53,101				53,101				53,101
Less: core deposit intangibles, net			16,636				17,854				7,222				7,961				8,760
Less: mortgage servicing rights, net			25				50				75				100				126
Less: naming rights, net			979				989				1,000				1,011				1,022
Tangible common equity		$	390,694			$	384,782			$	391,462			$	355,957			$	355,426
Common shares outstanding at period end			15,200,194				15,327,799				15,428,251				15,413,064				15,396,739
Diluted common shares outstanding at period end			15,358,396				15,469,531				15,629,185				15,500,749				15,468,319
Book value per common share		$	30.36			$	29.80			$	29.35			$	27.13			$	27.18
Tangible book value per common share		$	25.70			$	25.10			$	25.37			$	23.09			$	23.08
Tangible book value per diluted common share		$	25.44			$	24.87			$	25.05			$	22.96			$	22.98
Total assets		$	5,245,517			$	5,239,036			$	5,034,592			$	4,945,267			$	5,094,883
Less: goodwill			53,101				53,101				53,101				53,101				53,101
Less: core deposit intangibles, net			16,636				17,854				7,222				7,961				8,760
Less: mortgage servicing rights, net			25				50				75				100				126
Less: naming rights, net			979				989				1,000				1,011				1,022
Tangible assets		$	5,174,776			$	5,167,042			$	4,973,194			$	4,883,094			$	5,031,874
Total stockholders' equity to total assets			8.80	%			8.72	%			8.99	%			8.46	%			8.21	%
Tangible common equity to tangible assets			7.55	%			7.45	%			7.87	%			7.29	%			7.06	%
Total average stockholders' equity		$	455,322			$	460,244			$	423,207			$	426,260			$	424,862
Less: average intangible assets			71,423				62,203				61,756				62,635				63,453
Average tangible common equity		$	383,899			$	398,041			$	361,451			$	363,625			$	361,409
Net income (loss) allocable to common stockholders		$	11,716			$	14,068			$	(28,299	)		$	12,341			$	11,456
Add: amortization of intangible assets			1,254				935				775				835				954
Less: tax effect of intangible assets amortization			263				196				163				175				200
Adjusted net income (loss) allocable to common     stockholders		$	12,707			$	14,807			$	(27,687	)		$	13,001			$	12,210
Return on total average stockholders' equity     (ROAE) annualized			10.35	%			12.29	%			(26.53	)%			11.49	%			10.82	%
Return on average tangible common equity     (ROATCE) annualized			13.31	%			14.96	%			(30.39	)%			14.18	%			13.55	%
Non-interest expense		$	38,871			$	37,152			$	34,998			$	34,244			$	33,130
Less: merger expense			2,287				1,556				297				—				—
Adjusted non-interest expense		$	36,584			$	35,596			$	34,701			$	34,244			$	33,130
Net interest income		$	46,476			$	44,182			$	39,467			$	41,012			$	39,429
Non-interest income			8,958				11,731				(43,414	)			8,735				6,950
Less: net gain on acquisition and branch sales			60				1,240				—				—				—
Less: net gains (losses) from securities transactions			(27	)			43				(50,618	)			(1	)			(1,322	)
Adjusted non-interest income		$	8,925			$	10,448			$	7,204			$	8,736			$	8,272
Net interest income plus adjusted non-interest income		$	55,401			$	54,630			$	46,671			$	49,748			$	47,701
Non-interest expense to     net interest income plus non-interest income			70.12	%			66.45	%			(886.70	)%			68.84	%			71.43	%
Efficiency ratio			66.03	%			65.16	%			74.35	%			68.83	%			69.45	%
Net income (loss) allocable to common stockholders		$	11,716			$	14,068			$	(28,299	)		$	12,341			$	11,456
Add: income tax provision			4,582				3,693				(11,357	)			1,932				1,495
Add: provision (reversal) of credit losses			265				1,000				711				1,230				298
Pre-tax, pre-provision income		$	16,563			$	18,761			$	(38,945	)		$	15,503			$	13,249
Total average assets		$	5,196,258			$	5,152,915			$	4,892,712			$	5,046,179			$	5,064,912

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Total average stockholders' equity		$	455,322			$	460,244			$	423,207			$	426,620			$	424,862
Return on average assets (ROAA) annualized			0.91	%			1.10	%			(2.29	)%			0.97	%			0.91	%
Adjusted return on average assets			1.28	%			1.46	%			(3.16	)%			1.22	%			1.05	%
Adjusted return on average equity			14.63	%			16.39	%			(36.51	)%			14.43	%			12.51	%
Net income (loss) allocable to common stockholders		$	11,716			$	14,068			$	(28,299	)		$	12,341			$	11,456
Add: Day 1 -Provision			—				1,000				—				—				—
Less: Gain (loss) from securities transactions			(27	)			43				(50,618	)			(1	)			(1,322	)
Add: Merger expense			2,287				1,556				297				—				—
Adjusted non-core items			2,314				2,513				50,915				1				1,322
Tax effected non-core items			1,828				1,985				40,223				1				1,044
BOLI tax adjustment			1,730				—				—				—				—
Adjusted operating net income		$	15,274			$	16,053			$	11,924			$	12,342			$	12,500
GAAP earnings (loss) per diluted share		$	0.76			$	0.90			$	(1.84	)		$	0.80			$	0.74
Adjusted earnings (loss) per diluted share		$	0.99			$	1.03			$	0.77			$	0.80			$	0.81
Total average assets		$	5,196,258			$	5,152,915			$	4,892,712			$	5,046,179			$	5,064,912
Adjusted Operating ROAA			1.18	%			1.25	%			0.97	%			0.97	%			1.00	%
Weighted average diluted common shares			15,377,980				15,569,225				15,417,200				15,507,172				15,554,255

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Exhibit 99.2

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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,” “the 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,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature.  These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.  Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 7, 2024, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties arise from time to time and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue. NON-GAAP FINANCIAL MEASURES  This presentation contains certain non-GAAP financial measures intended to supplement, not substitute for, comparable GAAP measures.  Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of this presentation.  Numbers in the presentation may not sum due to rounding. Forward Looking Statements

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Equity Bancshares, Inc.| NYSE: EQBK Strategic Execution Of Acquisitions SCALE 12 Completed Bank Acquisitions SINCE IPO 2002 2008 2015 2024 START-UP 4 acquisitions GROWTH 4 acquisitions IPO KANSASLAND BANK MERGER Approved in Q2 2024 Closed on July 1 $380M $5.2B 27.2% Compound Annual Growth Rate3 Company Overview $5.2B Assets $3.5B Loans $4.3B Deposits $569.4M Market Cap1 7.55% TCE/TA2 11.12% CET 1 14.61% TRBC WICHITA Headquarters $1.6B Market Cap as of 7/12/2024 Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation. Compound Annual Growth Rate since EQBK was founded in 2002

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Leadership Team Brad Elliott Equity Bancshares, Inc. Chairman & CEO Years in Banking: 35 Founded Equity Bank in 2002 2018 EY Entrepreneur of the Year National Finalist 2014 Most Influential CEO, Wichita Business Journal Chris Navratil Chief Financial Officer Years in Banking: 13 Promoted to Chief Financial Officer in August 2023. Previously served as Bank CFO and prior to Equity, spent 7 years within the Financial Institution Audit Practice with Crowe LLP Brett Reber General Counsel Years in Law: 36 Prior to joining Equity Bank, he served as Managing Member of the Wise & Reber, L.C. law firm. Brett has practiced corporate and business law for over 30 years. David Pass Chief Information Officer Years in Banking: 23 Previously served in IT leadership positions at UMB Financial Corporation and CoBiz Financial. Rick Sems Equity Bank CEO Years in Banking: 24 Announced as Equity Bank CEO in May 2024. Joined Equity Bank as President in May 2023. Prior to joining, Rick served as Chief Banking Officer of First Bank in St. Louis and President & CEO of Reliance Bank Julie Huber Chief Operating Officer Years in Banking: 34 Announced as Chief Operating Officer in May 2024. Served in variety of leadership roles in her time at Equity Bank including overseeing our operations, hr, compliance functions and sales and training, and as managed the integration process for each acquisition. Kryzsztof Slupkowski Chief Credit Officer Years in Banking: 11 Promoted to Chief Credit Officer in September 2023. Served as Metro Market CCO since 2018, previously served in various credit function at Commerce Bancshares. Ann Knutson Chief Human Resources Officer Years in Banking: 16 Previously served in human resource leadership positions at Bank Five Nine and Summit Credit Union

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Our Value Proposition Organic Growth Strategic Mergers & Acquisitions Disciplined Credit Standards Effective Balance Sheet & Capital Management EPS & Tangible Book Value Growth Our guiding principles and commitment to our entrepreneurial spirit are part of our longstanding framework for delivering shareholder value

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Tangible Book Value Per Share1 7.44% Compound Annual Growth Rate Ex. AOCI AOCI Impact Tangible Book Value per common share. Non-GAAP Measure. For a reconciliation of Non-GAAP measures, please see appendix.

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2nd Quarter 2024 | Financial Highlights EARNINGS & PROFITABILITY Q2 24 Q1 24 Q2 23 Earnings Per Share1 $0.99 $1.03 $0.80 Tangible Book Value Per Share1 $25.70 $25.10 $23.08 Net Income1 $15.3M $16.1M $12.5M Net Interest Margin 3.94% 3.75% 3.38% Efficiency Ratio1 66.03% 65.16% 69.45% ROAA1 1.18% 1.25% 0.99% ROATCE1 17.04% 16.97% 14.71% Balance Sheet & Capital Total Loans $3.5B $3.5B $3.3B Total Deposits $4.3B $4.4B $4.2B Tangible Common Equity / Tangible Assets1 7.55% 7.45% 7.06% CET 1 Capital Ratio 11.12% 11.14% 12.23% Total Risk-based Capital Ratio 14.61% 14.71% 15.96% Asset Quality Provision for Credit Losses $0.3 $1.0 $0.3 NCOs / Avg. Loans 0.14% 0.08% 0.10% NPAs / Total Assets 0.52% 0.49% 0.31% Classified Assets / Regulatory Capital 8.47% 6.85% 7.94% HIGHLIGHTS $15.3M Adjusted Operating Net Income1 $0.99 Adjusted Operating Earnings Per Share1 $4.3B Total Deposits $3.5B Gross Loans Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation.

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Merger Expense & Gain / (Loss) on Securities Primary Drivers Net Interest Income Noninterest Income Rate Protection Noninterest Expense Net interest income totaled $46.5 million in the second quarter, up $2.3 million from the first quarter, driven by an increase in net interest margin, attributable to increased yields on loans and relatively flat cost of deposits. Noninterest income totaled $8.9 million in the second quarter, driven by service charges and fees, including trust and wealth management income, card income and mortgage banking income. Q1 included, $2.3M in special assets resolutions, which did not repeat in Q2. Proactive effort to book variable rate assets subject to floor levels. Noninterest expense totaled $38.9 million in the second quarter, up $1.8 million from the first quarter, primarily driven by merger related expenses. Quarter over Quarter Walk Q1 Q2 1) Tax affected @ 21% Net Income Q2 1

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Performance Metrics Adjusted Return On Tangible Common Equity1 Adjusted Return on Average Assets1 Efficiency Ratio1 TCE / TA Excluding AOCI1 Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation.

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Profitability Revenue Composition1 Profitability Ratios1 Noninterest income is adjusted to exclude and gain/(loss) on securities transactions

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Primary Drivers Deposits Cost of Deposits Loan Yield Investment Yield Borrowings Excess Liquidity Noninterest-bearing deposits constitute 22.7% of total deposits. Cost of total deposits decreased 2bps and cost of interest-bearing deposits increased 1bps in the quarter. Loan yield increased 30bps quarter-over-quarter, driven by higher coupon, purchase accounting, and the expiration of a receive-fixed swap Realized a full quarter’s benefit of the addition of the Bank of Kirksville portfolio which re-priced to market at acquisition date. Borrowing balances expanded modestly in the quarter at higher rates driving up associated cost of financing. Excess on balance sheet liquidity cash position held steady throughout Q2 – contributing to net interest income while limiting margin. Quarter over Quarter Walk Net Interest Margin Quarter over Quarter +26bps Net Interest Income 3.75% Q1 3.94% Q2 Q1 Q2

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Current Deposit Composition Strong Core Deposit Franchise Trending Deposit Composition & Loan To Deposit Ratio Core Deposits excludes time deposits > $100K Core Deposits1 / Total Deposits Millions

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Yield Analysis1 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Fed Rate Change Since Beginning of Rate Cycle – Q4 2021 4.91% 5.18% 5.25% 5.25% 5.25% Loans 47% 49% 50% 53% 58% Deposits 30% 32% 34% 38% 37% Loan Coupon exclusive of the impact of derivatives, purchase accounting, non accrual, mortgage premium amort, and loan fees Yield / Cost Components Cost Analysis Cumulative Betas

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Diversified Loan Portfolio Total Classified Assets $48.4M Total Classified Assets / Total Bank Regulatory Capital 8.47% Net Charge-offs YTD / Average Loans 0.11% Loan Mix Total Loans & Yield on Loans

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Nonperforming Assets1,2 Total Reserve Ratio Asset Quality Trends - Quarterly Net Charge-offs / Average Loans Classified Assets OREO & Other Rep. Assets excludes Bank owned branch assets, totaling $1.1M, classified as Other Real Estate Owned within the Statements of Condition. NPAs / Assets Includes loans 90+ days past due which are not highlighted in the table.

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Asset Quality Trends – Annual Net Charge-offs / Average Loans Classified Assets Nonperforming Assets1,2 Total Reserve Ratio OREO & Other Rep. Assets excludes Bank owned branch assets, totaling $1.1M, classified as Other Real Estate Owned within the Statements of Condition. NPAs / Assets Includes loans 90+ days past due which are not highlighted in the table.

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Tangible Book Value INCREASED $0.60 IN Q2 2024 TO $25.70 Q1 Q2 Q2 Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation.

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As of June 30, 2024, the tangible common equity ratio is being negatively impacted by $62 million in accumulated other comprehensive income.  Adjusting for this decline in fair value, which management views as temporary, would result in a Tangible Common Equity Ratio of 8.64%.​ THE COMPANY’S CAPITAL RATIOS ARE WELL CAPITALIZED LEVELS AS OF 6/30/2024 Capital Management EQBK Well Capitalized CAPITAL PRIORITIES Maintain well capitalized regulatory levels Capacity for organic growth Merger & acquisitions Dividend payout ratio targeted at 10-20% Common stock repurchases Dividends Declared Per Share & Dividend Payout Ratio Shares Repurchased & Weighted Avg. Price Per Share Non-GAAP 1 Thousands

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Outlook on Key Business Drivers 2nd QUARTER 2024 RESULTS ESTIMATES $4,251M $4,325 – 4,425M Avg. Deposits $3,459M $3,475 - 3,550M Avg. Loans $4,745M $4,775 - 4,875M Avg. Earning Assets 3.94% 3.70 - 3.80% Net Interest Margin $0.26M $0.5 – 1.5M Provision For Credit Losses $8.98M $8 - 9M Non-interest Income $36.6M $34 - 37M Non-interest Expense1 28.1% 18 - 20% Effective Tax Rate2 FORWARD LOOKING 3RD QUARTER 2024 FY 2024E $4,325 – 4,375M $4,275 - 4,350M $3,450 - 3,500M $3,450 - 3,525M $4,750 - 4,800M $4,700 – 4,800M 3.85 - 3.95% 3.80 - 3.95% $0.5 – 1.5M $2 – 4M $8 – 9M $36 - 40M $34 - 37M $140 - 144M 20 - 22% 20 - 22% NOTE: Figures presented in this outlook represent forward-looking statements and are not guarantees of future performance and are subject to risks, assumptions, and uncertainties that are difficult to predict. Please see Special Note Concerning Forward-Looking Statements. Core Non-interest Expense. Excludes merger expenses 2nd Quarter Effective Tax Rate includes the impact of the BOLI Transaction

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OUR OUTLOOK REQUIRES CLARITY AROUND CERTAIN VARIABLES, INCLUDING: ECONOMIC ENVIRONMENT CUSTOMER NEEDS COST OF FUNDING COMPETITIVE MARKET INVESTMENT OPPORTUNITIES POLITICAL ENVIRONMENT Business activity creates opportunity for lending and deposit growth. Current macro-environment response and resolution will be a significant driver. Directly related to credit quality as well as trust in our business. Impacts rates on our product offerings and applies pressure to earnings. Must be able to manage cost and profit yields effectively. Providing customers with rates and services that are competitive with our peers. Irrational operators may have short term impact on opportunities. Growth strategy must be flexible to the other variables that affect our investment options. U.S. politics affect banking regulations, international relationships, tax policies and more. Focus Variables for Outlook & Forecast

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Our Markets Kansas Market Rank #7 Deposits $2.5b Deposit Market Share 4.06% Missouri Market Rank #7 Deposits $861m Deposit Market Share 1.64% Oklahoma Market Rank #10 Deposits $570m Deposit Market Share 1.84% Arkansas Market Rank #6 Deposits $350m Deposit Market Share 3.36% Source: S&P Capital IQ, Deposit Market data as of 6/30/23. Market rank is based on counties with a EQBK physical presence.

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Non-GAAP Reconciliations

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Non-GAAP reconciliations CALCULATIONS OF TANGIBLE COMMON EQUITY AND RELATED MEASURES ($ in thousands, except per share data)

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Non-GAAP reconciliations CALCULATIONS OF ROATCE AND EFFICIENCY RATIO ($ in thousands, except per share data)

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Non-GAAP reconciliations CALCULATIONS OF RETURN ON AVERAGE ASSETS, AVERAGE EQUITY AND OPERATING NET INCOME ($ in thousands, except per share data)

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investor.equitybank.com

v3.24.2

Document And Entity Information	Jul. 16, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 16, 2024
Entity Registrant Name	EQUITY BANCSHARES, INC.
Entity Central Index Key	0001227500
Entity Emerging Growth Company	false
Securities Act File Number	001-37624
Entity Incorporation, State or Country Code	KS
Entity Tax Identification Number	72-1532188
Entity Address, Address Line One	7701 East Kellogg Drive
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Wichita
Entity Address, State or Province	KS
Entity Address, Postal Zip Code	67207
City Area Code	316
Local Phone Number	612.6000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Class A, Common Stock, par value $0.01 per share
Trading Symbol	EQBK
Security Exchange Name	NYSE

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