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): October 15, 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 October 15, 2024, Equity Bancshares, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 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 third quarter ended September 30, 2024, on Wednesday, October 16, 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 third quarter ended September 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 October 15, 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: October 15, 2024	By: /s/ Chris M. Navratil
	Chris M. Navratil
	Executive Vice President and Chief Financial Officer

 

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Equity Bancshares, Inc. Third Quarter Results Includes A Significant Recovery on Problem Asset and 16.9% Annualized Loan Growth

Reports 10.4% Tangible Book Value Growth, Closes Merger with KansasLand, Adding to Kansas Franchise

 

WICHITA, Kansas, October 15, 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 $19.8 million or $1.28 earnings per diluted share for the quarter ended September 30, 2024.

 

“Our Company realized another exceptional earnings quarter, which included the favorable resolution of a significant problem loan," said Brad S. Elliott, Chairman and CEO of Equity. "Our team is committed to serving our communities and, through prudent underwriting, mitigating risk. When challenges arise, we will pursue all avenues available to us for successful resolution on behalf of our shareholders."

"Also during this quarter, our team continued to execute on our mission as we grew customer relationships and loan balances while also expanding our footprint via the KansasLand Bancshares, Inc. ("KansasLand") acquisition," Mr. Elliott said. "We are well positioned to facilitate both organic growth and strategic M&A. We have the teams, the processes and the experience to be the premier community bank in our geography."

 

Notable Items:

 

 

Financial Results for the Quarter Ended September 30, 2024

 

Net income allocable to common stockholders was $19.8 million, or $1.28 per diluted share. Adjusting to exclude $618 thousand in pre-tax costs associated with mergers and gain on security transactions of $206 thousand, net income was $20.2 million or $1.31 per diluted share.

Excluding merger expenses and the costs associated with repositioning a portion of our BOLI portfolio in the prior quarter, net income was $15.3 million, or $0.99 per diluted share. The drivers of the periodic change are discussed in detail in the following sections.

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Net Interest Income

 

Net interest income was $46.0 million for the period ended September 30, 2024, as compared to $46.5 million for the three months ended June 30, 2024, the decline was driven by minor declines in average earning assets and margin, partially offset by an additional day in the current period. Net interest margin was 3.87% for the quarter compared to 3.94% as the yield on interest-earning assets declined 7 basis points to 6.30%.

The decline in earning asset yield was driven by declining trends in both non-accrual loan impacts and purchase accounting accretion. The comparative change in these components of interest income resulted in an 8 basis point decline in margin.

 

Provision for Credit Losses

 

During the quarter ended September 30, 2024, there was a provision of $1.2 million compared to a provision of $265 thousand in the previous quarter. The provision was primarily attributable to growth in loan balances 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 $1.6 million as compared to $1.2 million for the previous quarter.

 

Non-Interest Income

 

Total non-interest income was $9.3 million for the quarter ended September30, 2024, as compared to $9.0 million linked quarter. Included in current quarter results was gain realized on the acquisition of KansasLand of $831 thousand. Service fee revenue including deposit services, treasury, debit card, credit card, insurance and wealth management increased at an annualized rate of 2% during the quarter.

 

Non-Interest Expense

 

Total non-interest expense for the quarter was $30.3 million as compared to $38.9 million for the previous quarter. Adjusting for merger expenses in both periods, the decrease quarter over quarter was $6.9 million driven by the $8.5 million gain from a borrower's repurchase of our preferred equity interest in the borrower's company, partially offset by a $742 thousand write-down of a previous bank location now carried in Other Real Estate Owned and a $900 thousand increase in incentive accruals.

 

Income Tax Expense

The effective tax rate for the quarter was 16.7% as compared to 28.1% for the quarter ended June 30, 2024. The decrease in rate during the quarter was the result of the reversal of the non-recurring recognition of tax expense related to the liquidation of bank owned life insurance in the second quarter in addition to the reversal of deferred tax asset valuation allowance for the expected utilization of net operating loss carryforwards in the current tax year. Year-to-date effective tax rate is 21.2%.

 

Loans, Total Assets and Funding

Loans held for investment were $3.6 billion at September 30, 2024, increasing $146.5 million, or 16.9% on an annualized basis, during the quarter. Total assets were $5.4 billion as of the end of the period, increasing $109.7 million during the quarter.

Total deposits were $4.4 billion at September 30, 2024, increasing $21.5 million, or 2.0% on an annualized basis, from the previous quarter end. Of the total deposit balance, non-interest-bearing accounts comprise approximately 22.2%. Total

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Federal Home Loan Bank borrowings were $296.0 million as of the end of the quarter, up $45.7 million as compared to June 30, 2024.

 

Asset Quality

 

As of September 30, 2024, Equity’s allowance for credit losses to total loans was 1.2% down 5 basis points as compared to June 30, 2024. The decline was driven by realized charge-offs during the period. Nonperforming assets were $32.3 million as of September 30, 2024, or 0.6% of total assets, compared to $27.2 million at June 30, 2024, or 0.5% of total assets. Non-accrual loans were $31.2 million at September 30, 2024, as compared to $26.6 million at June 30, 2024. Total classified assets, including loans rated special mention or worse, other real estate owned, excluding previous branch locations, and other repossessed assets were $49.1 million, or 8.32% of regulatory capital, up from $48.4 million, or 8.5% of regulatory capital as of June 30, 2024.

 

Capital

 

Quarter over quarter, book capital increased $42.6 million to $504.0 million and tangible capital increased $43.2 million to $433.9 million. Tangible book value per share closed the quarter at $28.4, increasing 10.4% compared to prior quarter. The increase in capital is primarily due to earnings and improvement in unrealized losses on bonds and cash flow hedges of $22.0 million, partially offset by dividends of $2.3 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 11.4%, the total capital to risk-weighted assets was 14.8% and the total leverage ratio was 9.6% at September 30, 2024. At June 30, 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 14.6% and the total leverage ratio was 9.1%.

Equity Bank's ratio of common equity tier 1 capital to risk-weighted assets was 13.0%, total capital to risk-weighted assets was 14.1% and the total leverage ratio was 10.4% at September 30, 2024. At June 30, 2024, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 12.9%, the ratio of total capital to risk-weighted assets was 14.0% and the total leverage ratio was 10.1%.

 

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.

 

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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.

 

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 third quarter results on Wednesday, October 16, 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 following the close of the call 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.

 

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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.

 

Investor Contact:

 

Brian J. Katzfey

VP, Director of Corporate Development and Investor Relations

Equity Bancshares, Inc.

(316) 858-3128

bkatzfey@equitybank.com

 

Media Contact:

 

Russell Colburn

Public Relations and Communication Manager

Equity Bancshares, Inc.

(913) 583-8011

rcolburn@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 September 30,								Nine months ended September 30,
		2024				2023				2024				2023
Interest and dividend income
Loans, including fees		$	62,089			$	55,152			$	182,436			$	156,281
Securities, taxable			9,809				5,696				29,862				17,456
Securities, nontaxable			400				369				1,192				1,606
Federal funds sold and other			2,667				3,822				8,374				7,075
Total interest and dividend income			74,965				65,039				221,864				182,418
Interest expense
Deposits			23,679				19,374				69,196				50,399
Federal funds purchased and retail repurchase agreements			261				246				893				633
Federal Home Loan Bank advances			3,089				968				8,022				2,939
Federal Reserve Bank borrowings			—				1,546				1,361				3,209
Subordinated debt			1,905				1,893				5,703				5,687
Total interest expense			28,934				24,027				85,175				62,867
Net interest income			46,031				41,012				136,689				119,551
Provision (reversal) for credit losses			1,183				1,230				2,448				1,162
Net interest income after provision (reversal) for credit losses			44,848				39,782				134,241				118,389
Non-interest income
Service charges and fees			2,424				2,690				7,534				7,888
Debit card income			2,665				2,591				7,733				7,798
Mortgage banking			287				226				720				527
Increase in value of bank-owned life insurance			1,344				794				3,083				3,134
Net gain on acquisition and branch sales			831				—				2,131				—
Net gains (losses) from securities transactions			206				(1	)			222				(1,291	)
Other			1,560				2,435				8,583				6,229
Total non-interest income			9,317				8,735				30,006				24,285
Non-interest expense
Salaries and employee benefits			18,494				15,857				54,418				47,786
Net occupancy and equipment			3,478				3,262				10,800				9,081
Data processing			5,152				4,553				15,016				12,962
Professional fees			1,487				1,312				4,657				4,341
Advertising and business development			1,368				1,419				3,897				3,827
Telecommunications			660				502				1,887				1,503
FDIC insurance			660				660				1,821				1,535
Courier and postage			686				548				1,912				1,469
Free nationwide ATM cost			544				516				1,569				1,565
Amortization of core deposit intangibles			1,112				799				3,229				2,635
Loan expense			143				132				447				385
Other real estate owned			(7,719	)			128				(7,786	)			318
Merger expenses			618				—				4,461				—
Other			3,645				4,556				10,023				13,196
Total non-interest expense			30,328				34,244				106,351				100,603
Income (loss) before income tax			23,837				14,273				57,896				42,071
Provision for income taxes			3,986				1,932				12,261				5,951
Net income (loss) and net income (loss) allocable to common stockholders		$	19,851			$	12,341			$	45,635			$	36,120
Basic earnings (loss) per share		$	1.30			$	0.80			$	2.98			$	2.32
Diluted earnings (loss) per share		$	1.28			$	0.80			$	2.95			$	2.30
Weighted average common shares			15,258,822				15,404,992				15,310,888				15,575,731
Weighted average diluted common shares			15,451,545				15,507,172				15,467,930				15,692,305

 

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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
		September 30, 2024				June 30, 2024				March 31, 2024				December 31, 2023				September 30, 2023
Interest and dividend income
Loans, including fees		$	62,089			$	61,518			$	58,829			$	54,932			$	55,152
Securities, taxable			9,809				10,176				9,877				6,417				5,696
Securities, nontaxable			400				401				391				354				369
Federal funds sold and other			2,667				3,037				2,670				2,591				3,822
Total interest and dividend income			74,965				75,132				71,767				64,294				65,039
Interest expense
Deposits			23,679				22,662				22,855				20,074				19,374
Federal funds purchased and retail repurchase agreements			261				306				326				298				246
Federal Home Loan Bank advances			3,089				3,789				1,144				1,005				968
Federal Reserve Bank borrowings			—				—				1,361				1,546				1,546
Subordinated debt			1,905				1,899				1,899				1,904				1,893
Total interest expense			28,934				28,656				27,585				24,827				24,027
Net interest income			46,031				46,476				44,182				39,467				41,012
Provision (reversal) for credit losses			1,183				265				1,000				711				1,230
Net interest income after provision (reversal) for credit losses			44,848				46,211				43,182				38,756				39,782
Non-interest income
Service charges and fees			2,424				2,541				2,569				2,299				2,690
Debit card income			2,665				2,621				2,447				2,524				2,591
Mortgage banking			287				245				188				125				226
Increase in value of bank-owned life insurance			1,344				911				828				925				794
Net gain on acquisition and branch sales			831				60				1,240				—				—
Net gains (losses) from securities transactions			206				(27	)			43				(50,618	)			(1	)
Other			1,560				2,607				4,416				1,331				2,435
Total non-interest income			9,317				8,958				11,731				(43,414	)			8,735
Non-interest expense
Salaries and employee benefits			18,494				17,827				18,097				16,598				15,857
Net occupancy and equipment			3,478				3,787				3,535				3,244				3,262
Data processing			5,152				5,036				4,828				4,471				4,553
Professional fees			1,487				1,778				1,392				1,413				1,312
Advertising and business development			1,368				1,291				1,238				1,598				1,419
Telecommunications			660				572				655				460				502
FDIC insurance			660				590				571				660				660
Courier and postage			686				620				606				577				548
Free nationwide ATM cost			544				531				494				508				516
Amortization of core deposit intangibles			1,112				1,218				899				739				799
Loan expense			143				195				109				155				132
Other real estate owned			(7,719	)			17				(84	)			224				128
Merger expenses			618				2,287				1,556				297				—
Other			3,645				3,122				3,256				4,054				4,556
Total non-interest expense			30,328				38,871				37,152				34,998				34,244
Income (loss) before income tax			23,837				16,298				17,761				(39,656	)			14,273
Provision for income taxes (benefit)			3,986				4,582				3,693				(11,357	)			1,932
Net income (loss) and net income (loss) allocable to common stockholders		$	19,851			$	11,716			$	14,068			$	(28,299	)		$	12,341
Basic earnings (loss) per share		$	1.30			$	0.77			$	0.91			$	(1.84	)		$	0.80
Diluted earnings (loss) per share		$	1.28			$	0.76			$	0.90			$	(1.84	)		$	0.80
Weighted average common shares			15,258,822				15,248,703				15,425,709				15,417,200				15,404,992
Weighted average diluted common shares			15,451,545				15,377,980				15,569,225				15,417,200				15,507,172

 

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TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands)

		September 30,  2024				June 30,  2024				March 31,  2024				December 31, 2023				September 30, 2023
ASSETS
Cash and due from banks		$	217,681			$	244,321			$	217,611			$	363,289			$	183,404
Federal funds sold			17,802				15,945				17,407				15,810				15,613
Cash and cash equivalents			235,483				260,266				235,018				379,099				199,017
Available-for-sale securities			1,041,000				1,042,176				1,091,717				919,648				1,057,009
Held-to-maturity securities			5,408				5,226				2,205				2,209				2,212
Loans held for sale			901				1,959				1,311				476				627
Loans, net of allowance for credit losses(1)			3,557,435				3,410,920				3,437,714				3,289,381				3,237,932
Other real estate owned, net			2,786				2,989				1,465				1,833				3,369
Premises and equipment, net			117,013				114,264				116,792				112,632				110,271
Bank-owned life insurance			131,670				130,326				125,693				124,865				124,245
Federal Reserve Bank and Federal Home Loan Bank stock			34,429				33,171				27,009				20,608				20,780
Interest receivable			28,398				27,381				27,082				25,497				23,621
Goodwill			53,101				53,101				53,101				53,101				53,101
Core deposit intangibles, net			16,029				16,636				17,854				7,222				7,961
Other			131,580				147,102				102,075				98,021				105,122
Total assets		$	5,355,233			$	5,245,517			$	5,239,036			$	5,034,592			$	4,945,267
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Demand		$	967,858			$	984,872			$	981,623			$	898,129			$	936,217
Total non-interest-bearing deposits			967,858				984,872				981,623				898,129				936,217
Demand, savings and money market			2,468,956				2,560,091				2,574,871				2,483,807				2,397,003
Time			926,130				796,474				814,532				763,519				748,950
Total interest-bearing deposits			3,395,086				3,356,565				3,389,403				3,247,326				3,145,953
Total deposits			4,362,944				4,341,437				4,371,026				4,145,455				4,082,170
Federal funds purchased and retail repurchase agreements			38,196				38,031				43,811				43,582				39,701
Federal Home Loan Bank advances and Federal Reserve Bank borrowings			295,997				250,306				219,931				240,000				240,000
Subordinated debt			97,336				97,196				97,058				96,921				96,787
Contractual obligations			19,683				23,770				18,493				19,315				29,019
Interest payable and other liabilities			37,039				33,342				31,941				36,459				39,460
Total liabilities			4,851,195				4,784,082				4,782,260				4,581,732				4,527,137
Commitments and contingent liabilities
Stockholders’ equity
Common stock			209				208				208				207				207
Additional paid-in capital			494,763				491,709				490,533				489,187				488,137
Retained earnings			180,588				163,068				153,201				141,006				171,188
Accumulated other comprehensive income (loss), net of tax			(40,012	)			(62,005	)			(60,788	)			(57,920	)			(122,047	)
Treasury stock			(131,510	)			(131,545	)			(126,378	)			(119,620	)			(119,355	)
Total stockholders’ equity			504,038				461,435				456,776				452,860				418,130
Total liabilities and stockholders’ equity		$	5,355,233			$	5,245,517			$	5,239,036			$	5,034,592			$	4,945,267
(1) Allowance for credit losses		$	43,490			$	43,487			$	44,449			$	43,520			$	44,186

 

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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
		September 30,				June 30,				March 31,				December 31,				September 30,
		2024				2024				2024				2023				2023
Loans Held For Investment by Type
Commercial real estate		$	1,916,863			$	1,793,544			$	1,797,192			$	1,759,855			$	1,721,761
Commercial and industrial			670,665				663,718				649,035				598,327				585,129
Residential real estate			567,063				572,523				581,988				556,328				558,188
Agricultural real estate			259,587				219,226				198,291				196,114				205,865
Agricultural			89,529				104,342				149,312				118,587				103,352
Consumer			97,218				101,054				106,345				103,690				107,823
Total loans held-for-investment			3,600,925				3,454,407				3,482,163				3,332,901				3,282,118
Allowance for credit losses			(43,490	)			(43,487	)			(44,449	)			(43,520	)			(44,186	)
Net loans held for investment		$	3,557,435			$	3,410,920			$	3,437,714			$	3,289,381			$	3,237,932
Asset Quality Ratios
Allowance for credit losses on loans to total loans			1.21	%			1.26	%			1.28	%			1.31	%			1.35	%
Past due or nonaccrual loans to total loans			1.17	%			1.15	%			1.10	%			1.10	%			1.03	%
Nonperforming assets to total assets			0.60	%			0.52	%			0.49	%			0.53	%			0.42	%
Nonperforming assets to total loans plus other     real estate owned			0.90	%			0.79	%			0.73	%			0.79	%			0.63	%
Classified assets to bank total regulatory capital			8.32	%			8.47	%			6.85	%			7.09	%			6.27	%
Selected Average Balance Sheet Data (QTD Average)
Investment securities		$	1,055,833			$	1,065,979			$	1,074,101			$	985,591			$	1,085,905
Total gross loans receivable			3,475,885				3,459,476				3,452,553				3,293,755				3,281,483
Interest-earning assets			4,731,927				4,745,713				4,742,200				4,480,279				4,635,384
Total assets			5,205,017				5,196,259				5,152,915				4,892,712				5,046,179
Interest-bearing deposits			3,309,202				3,275,765				3,319,907				3,092,637				3,206,300
Borrowings			395,190				450,178				390,166				391,691				385,125
Total interest-bearing liabilities			3,704,392				3,725,943				3,710,073				3,484,328				3,591,425
Total deposits			4,275,424				4,250,843				4,254,883				4,019,362				4,177,332
Total liabilities			4,719,549				4,740,937				4,692,671				4,469,505				4,619,919
Total stockholders' equity			485,468				455,322				460,244				423,207				426,260
Tangible common equity*			414,644				383,899				398,041				361,451				363,625
Performance ratios
Return on average assets (ROAA) annualized			1.52	%			0.91	%			1.10	%			(2.29	)%			0.97	%
Return on average assets before income tax and    provision for loan losses*			1.91	%			1.28	%			1.46	%			(3.16	)%			1.22	%
Return on average equity (ROAE) annualized			16.27	%			10.35	%			12.29	%			(26.53	)%			11.49	%
Return on average equity before income tax and    provision for loan losses*			20.50	%			14.63	%			16.39	%			(36.51	)%			14.43	%
Return on average tangible common equity    (ROATCE) annualized*			19.92	%			13.31	%			14.96	%			(30.39	)%			14.18	%
Yield on loans annualized			7.11	%			7.15	%			6.85	%			6.62	%			6.67	%
Cost of interest-bearing deposits annualized			2.85	%			2.78	%			2.77	%			2.58	%			2.40	%
Cost of total deposits annualized			2.20	%			2.14	%			2.16	%			1.98	%			1.84	%
Net interest margin annualized			3.87	%			3.94	%			3.75	%			3.49	%			3.51	%
Efficiency ratio*			54.70	%			66.03	%			65.16	%			74.35	%			68.83	%
Non-interest income / average assets			0.71	%			0.69	%			0.92	%			(3.52	)%			0.69	%
Non-interest expense / average assets			2.32	%			3.01	%			2.90	%			2.84	%			2.69	%
Capital Ratios
Tier 1 Leverage Ratio			9.55	%			9.14	%			9.10	%			9.46	%			9.77	%
Common Equity Tier 1 Capital Ratio			11.37	%			11.12	%			11.14	%			11.74	%			12.65	%
Tier 1 Risk Based Capital Ratio			11.94	%			11.70	%			11.73	%			12.36	%			13.27	%
Total Risk Based Capital Ratio			14.78	%			14.61	%			14.71	%			15.48	%			16.42	%

---

Total stockholders' equity to total assets			9.41	%			8.80	%			8.72	%			8.99	%			8.46	%
Tangible common equity to tangible assets*			8.21	%			7.55	%			7.45	%			7.87	%			7.29	%
Dividend payout ratio			11.74	%			15.79	%			13.31	%			(6.65	)%			15.13	%
Book value per common share		$	32.97			$	30.36			$	29.80			$	29.35			$	27.13
Tangible book value per common share*		$	28.38			$	25.70			$	25.10			$	25.37			$	23.09
Tangible book value per diluted common share*		$	28.00			$	25.44			$	24.87			$	25.05			$	22.96
* 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 nine months ended												For nine months ended
	September 30, 2024												September 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	$	643,213			$	38,408				7.98	%		$	580,359			$	31,503				7.26	%
Commercial real estate		1,400,385				73,339				7.00	%			1,300,202				61,811				6.36	%
Real estate construction		400,317				26,350				8.79	%			450,147				24,764				7.36	%
Residential real estate		579,818				19,935				4.59	%			567,169				17,933				4.23	%
Agricultural real estate		218,334				11,777				7.21	%			202,963				10,399				6.85	%
Agricultural		116,520				7,398				8.48	%			100,450				5,039				6.71	%
Consumer		104,098				5,229				6.71	%			106,841				4,832				6.05	%
Total loans		3,462,685				182,436				7.04	%			3,308,131				156,281				6.32	%
Securities
Taxable securities		1,004,367				29,862				3.97	%			1,059,858				17,456				2.20	%
Nontaxable securities		60,903				1,192				2.62	%			82,230				1,606				2.61	%
Total securities		1,065,270				31,054				3.89	%			1,142,088				19,062				2.23	%
Federal funds sold and other		211,961				8,374				5.28	%			191,585				7,075				4.94	%
Total interest-earning assets	$	4,739,916				221,864				6.25	%		$	4,641,804				182,418				5.25	%
Interest-bearing liabilities
Demand, savings and money market deposits	$	2,535,852				48,090				2.53	%		$	2,365,972				32,288				1.82	%
Time deposits		765,800				21,106				3.68	%			856,862				18,111				2.83	%
Total interest-bearing deposits		3,301,652				69,196				2.80	%			3,222,834				50,399				2.09	%
FHLB advances		223,132				8,022				4.80	%			97,014				2,939				4.05	%
Other borrowings		188,652				7,957				5.63	%			243,007				9,529				5.24	%
Total interest-bearing liabilities	$	3,713,436				85,175				3.06	%		$	3,562,855				62,867				2.36	%
Net interest income					$	136,689											$	119,551
Interest rate spread										3.19	%											2.89	%
Net interest margin (2)										3.85	%											3.44	%
(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
	September 30, 2024												September 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	$	659,697			$	13,213				7.97	%		$	573,039			$	10,984				7.60	%
Commercial real estate		1,351,407				24,196				7.12	%			1,253,362				20,824				6.59	%
Real estate construction		442,857				9,732				8.74	%			480,355				9,838				8.13	%
Residential real estate		578,702				6,912				4.75	%			564,138				6,085				4.28	%
Agricultural real estate		251,595				4,365				6.90	%			203,399				3,898				7.60	%
Agricultural		91,500				1,906				8.29	%			99,773				1,856				7.38	%
Consumer		100,127				1,765				7.01	%			107,417				1,667				6.16	%
Total loans		3,475,885				62,089				7.11	%			3,281,483				55,152				6.67	%
Securities
Taxable securities		995,713				9,809				3.92	%			1,027,889				5,696				2.20	%
Nontaxable securities		60,120				400				2.65	%			58,016				369				2.52	%
Total securities		1,055,833				10,209				3.85	%			1,085,905				6,065				2.22	%
Federal funds sold and other		200,209				2,667				5.30	%			267,996				3,822				5.66	%
Total interest-earning assets	$	4,731,927				74,965				6.30	%		$	4,635,384				65,039				5.57	%
Interest-bearing liabilities
Demand, savings and money market deposits	$	2,555,916				16,484				2.57	%		$	2,423,380				13,331				2.18	%
Time deposits		753,286				7,195				3.80	%			782,920				6,043				3.06	%
Total interest-bearing deposits		3,309,202				23,679				2.85	%			3,206,300				19,374				2.40	%
FHLB advances		252,751				3,089				4.86	%			100,000				968				3.84	%
Other borrowings		142,439				2,166				6.05	%			285,125				3,685				5.13	%
Total interest-bearing liabilities	$	3,704,392				28,934				3.11	%		$	3,591,425				24,027				2.65	%
Net interest income					$	46,031											$	41,012
Interest rate spread										3.19	%											2.92	%
Net interest margin (2)										3.87	%											3.51	%
(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
	September 30, 2024												June 30, 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	$	659,697			$	13,213				7.97	%		$	635,123			$	12,782				8.09	%
Commercial real estate		1,351,407				24,196				7.12	%			1,401,109				24,541				7.04	%
Real estate construction		442,857				9,732				8.74	%			402,831				8,843				8.83	%
Residential real estate		578,702				6,912				4.75	%			580,338				6,563				4.55	%
Agricultural real estate		251,595				4,365				6.90	%			206,018				3,944				7.70	%
Agricultural		91,500				1,906				8.29	%			127,298				3,102				9.80	%
Consumer		100,127				1,765				7.01	%			106,759				1,743				6.57	%
Total loans		3,475,885				62,089				7.11	%			3,459,476				61,518				7.15	%
Securities
Taxable securities		995,713				9,809				3.92	%			1,006,018				10,176				4.07	%
Nontaxable securities		60,120				400				2.65	%			59,961				401				2.70	%
Total securities		1,055,833				10,209				3.85	%			1,065,979				10,577				3.99	%
Federal funds sold and other		200,209				2,667				5.30	%			220,258				3,037				5.54	%
Total interest-earning assets	$	4,731,927				74,965				6.30	%		$	4,745,713				75,132				6.37	%
Interest-bearing liabilities
Demand savings and money market deposits	$	2,555,916				16,484				2.57	%		$	2,530,899				15,946				2.53	%
Time deposits		753,286				7,195				3.80	%			744,866				6,716				3.63	%
Total interest-bearing deposits		3,309,202				23,679				2.85	%			3,275,765				22,662				2.78	%
FHLB advances		252,751				3,089				4.86	%			302,972				3,789				5.03	%
Other borrowings		142,439				2,166				6.05	%			147,206				2,205				6.03	%
Total interest-bearing liabilities	$	3,704,392				28,934				3.11	%		$	3,725,943				28,656				3.09	%
Net interest income					$	46,031											$	46,476
Interest rate spread										3.19	%											3.28	%
Net interest margin (2)										3.87	%											3.94	%
(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
		September 30,				June 30,				March 31,				December 31,				September 30,
		2024				2024				2024				2023				2023
Total stockholders' equity		$	504,038			$	461,435			$	456,776			$	452,860			$	418,130
Less: goodwill			53,101				53,101				53,101				53,101				53,101
Less: core deposit intangibles, net			16,029				16,636				17,854				7,222				7,961
Less: mortgage servicing rights, net			—				25				50				75				100
Less: naming rights, net			968				979				989				1,000				1,011
Tangible common equity		$	433,940			$	390,694			$	384,782			$	391,462			$	355,957
Common shares outstanding at period end			15,288,309				15,200,194				15,327,799				15,428,251				15,413,064
Diluted common shares outstanding at period end			15,497,466				15,358,396				15,469,531				15,629,185				15,500,749
Book value per common share		$	32.97			$	30.36			$	29.80			$	29.35			$	27.13
Tangible book value per common share		$	28.38			$	25.70			$	25.10			$	25.37			$	23.09
Tangible book value per diluted common share		$	28.00			$	25.44			$	24.87			$	25.05			$	22.96
Total assets		$	5,355,233			$	5,245,517			$	5,239,036			$	5,034,592			$	4,945,267
Less: goodwill			53,101				53,101				53,101				53,101				53,101
Less: core deposit intangibles, net			16,029				16,636				17,854				7,222				7,961
Less: mortgage servicing rights, net			—				25				50				75				100
Less: naming rights, net			968				979				989				1,000				1,011
Tangible assets		$	5,285,135			$	5,174,776			$	5,167,042			$	4,973,194			$	4,883,094
Total stockholders' equity to total assets			9.41	%			8.80	%			8.72	%			8.99	%			8.46	%
Tangible common equity to tangible assets			8.21	%			7.55	%			7.45	%			7.87	%			7.29	%
Total average stockholders' equity		$	485,468			$	455,322			$	460,244			$	423,207			$	426,260
Less: average intangible assets			70,824				71,423				62,203				61,756				62,635
Average tangible common equity		$	414,644			$	383,899			$	398,041			$	361,451			$	363,625
Net income (loss) allocable to common stockholders		$	19,851			$	11,716			$	14,068			$	(28,299	)		$	12,341
Add: amortization of intangible assets			1,148				1,254				935				775				835
Less: tax effect of intangible assets amortization			241				263				196				163				175
Adjusted net income (loss) allocable to common     stockholders		$	20,758			$	12,707			$	14,807			$	(27,687	)		$	13,001
Return on total average stockholders' equity     (ROAE) annualized			16.27	%			10.35	%			12.29	%			(26.53	)%			11.49	%
Return on average tangible common equity     (ROATCE) annualized			19.92	%			13.31	%			14.96	%			(30.39	)%			14.18	%
Non-interest expense		$	30,328			$	38,871			$	37,152			$	34,998			$	34,244
Less: merger expense			618				2,287				1,556				297				—
Adjusted non-interest expense		$	29,710			$	36,584			$	35,596			$	34,701			$	34,244
Net interest income		$	46,031			$	46,476			$	44,182			$	39,467			$	41,012
Non-interest income			9,317				8,958				11,731				(43,414	)			8,735
Less: net gain on acquisition and branch sales			831				60				1,240				—				—
Less: net gains (losses) from securities transactions			206				(27	)			43				(50,618	)			(1	)
Adjusted non-interest income		$	8,280			$	8,925			$	10,448			$	7,204			$	8,736
Net interest income plus adjusted non-interest income		$	54,311			$	55,401			$	54,630			$	46,671			$	49,748
Non-interest expense to     net interest income plus non-interest income			54.80	%			70.12	%			66.45	%			(886.70	)%			68.84	%
Efficiency ratio			54.70	%			66.03	%			65.16	%			74.35	%			68.83	%
Net income (loss) allocable to common stockholders		$	19,851			$	11,716			$	14,068			$	(28,299	)		$	12,341
Add: income tax provision			3,986				4,582				3,693				(11,357	)			1,932
Add: provision (reversal) of credit losses			1,183				265				1,000				711				1,230
Pre-tax, pre-provision income		$	25,020			$	16,563			$	18,761			$	(38,945	)		$	15,503
Total average assets		$	5,205,017			$	5,196,259			$	5,152,915			$	4,892,712			$	5,046,179

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Total average stockholders' equity		$	485,468			$	455,322			$	460,244			$	423,207			$	426,620
Return on average assets (ROAA) annualized			1.52	%			0.91	%			1.10	%			(2.29	)%			0.97	%
Adjusted return on average assets			1.91	%			1.28	%			1.46	%			(3.16	)%			1.22	%
Adjusted return on average equity			20.50	%			14.63	%			16.39	%			(36.51	)%			14.43	%
Net income (loss) allocable to common stockholders		$	19,851			$	11,716			$	14,068			$	(28,299	)		$	12,341
Add: Day 1 -Provision			—				—				1,000				—				—
Less: Gain (loss) from securities transactions			206				(27	)			43				(50,618	)			(1	)
Add: Merger expense			618				2,287				1,556				297				—
Adjusted non-core items			412				2,314				2,513				50,915				1
Tax effected non-core items			325				1,828				1,985				40,223				1
BOLI tax adjustment			—				1,730				—				—				—
Adjusted operating net income		$	20,176			$	15,274			$	16,053			$	11,924			$	12,342
GAAP earnings (loss) per diluted share		$	1.28			$	0.76			$	0.90			$	(1.84	)		$	0.80
Adjusted earnings (loss) per diluted share		$	1.31			$	0.99			$	1.03			$	0.77			$	0.80
Total average assets		$	5,205,017			$	5,196,258			$	5,152,915			$	4,892,712			$	5,046,179
Adjusted Operating ROAA			1.54	%			1.18	%			1.25	%			0.97	%			0.97	%
Weighted average diluted common shares			15,451,545				15,377,980				15,569,225				15,417,200				15,507,172

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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 $380M $5.4B 27.3% Compound Annual Growth Rate3 Company Overview $5.4B Assets $3.6B Loans $4.4B Deposits $604M Market Cap1 8.21% TCE/TA2 11.37% CET 1 14.78% TRBC WICHITA Headquarters $1.6B Market Cap as of 10/9/2024 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 Tangible Book Value per common share. Non-GAAP Measure. For a reconciliation of Non-GAAP measures, please see appendix. AOCI Impact TBVPS TBVPS Ex. AOCI 7.65% CAGR Ex. AOCI

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3rd Quarter 2024 | Financial Highlights EARNINGS & PROFITABILITY Q3 24 Q2 24 Q3 23 Earnings Per Share | Adjusted Earnings Per Share1 $1.28 / $1.311 $0.76 / $0.991 $0.80 / $0.801 Book Value Per Share | TBV Per Share1 $32.97 / $28.381 $25.701 $23.091 Net Income | Adjusted Net Income $19.9M / $20.2M1 $11.7M / $15.3M1 $12.3M / $12.3M1 Net Interest Margin 3.87% 3.94% 3.51% Efficiency Ratio1 54.70% 66.03% 68.83% ROAA | Adjusted ROAA 1.52% / 1.54%1 0.91% / 1.18%1 0.97% / 0.97%1 ROAE / ROTACE1 16.27% / 20.23%1 10.35% / 17.04%1 11.49% / 14.19%1 Balance Sheet & Capital Total Loans $3.6B $3.5B $3.3B Total Deposits $4.4B $4.3B $4.1B Total Equity / Totals Assets | TCE/TA1 9.41% / 8.21%1 8.80% / 7.55%1 8.46% / 7.29%1 CET 1 Capital Ratio 11.37% 11.12% 12.65% Total Risk-based Capital Ratio 14.78% 14.61% 16.42% Asset Quality Provision for Credit Losses $1.2 $0.3 $1.2 NCOs / Avg. Loans 0.18% 0.14% 0.19% NPAs / Total Assets 0.60% 0.52% 0.41% Classified Assets / Regulatory Capital 8.32% 8.47% 6.27% HIGHLIGHTS $20.2M Adjusted Operating Net Income1 $1.31 Adjusted Operating Earnings Per Share1 $4.4B Total Deposits $3.6B Gross Loans Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation. Adjusted figures exclude merger expenses and net gain (loss) on securities.

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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. Adjusted figures exclude merger expenses and net gain (loss) on securities.

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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 $46.0 million in the third quarter, down $445 thousand from the second quarter, driven by a decrease in net interest margin and average earning assets. The margin decline was attributable to non-coupon components of loan yield. Noninterest income totaled $9.3 million in the third quarter, driven by service charges and fees, including trust and wealth management income, card income and mortgage banking income. Also included was a gain on acquisition of $831 thousand related to our merger with KansasLand. Proactive effort to book variable rate assets subject to floor levels. Noninterest expense totaled $30.3 million in the third quarter, benefitting from the recognition of an $8.5 million recovery on a former problem asset. Quarter over Quarter Walk Q2 Q3 1) Tax affected @ 21% Net Income Q2 1 Q3

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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 22.2% of total deposits. Cost of total deposits increased 6bps and cost of interest-bearing deposits increased 7bps in the quarter. Loan yield decreased 4bps quarter-over-quarter, driven by purchase accounting and non-accrual impacts, offsetting 4bp higher coupon yield quarter-over-quarter Declined during the period due to the number of days reflected, as well as an improving unrealized loss position on the portfolio. Borrowing balances were down during the quarter, resulting in less expense and a lower overall cost as hedged positions made up a larger percentage of the whole. Excess on balance sheet liquidity cash position remained throughout Q3 – contributing to net interest income while limiting margin. Quarter over Quarter Walk Net Interest Margin Quarter over Quarter -7bps Net Interest Income 3.94% Q2 3.87% Q3 Q2 Q3

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Current Deposit Composition Strong Core Deposit Franchise Trending Deposit Composition & Loan To Deposit Ratio Core Deposits excludes brokered & listing service deposits Core Deposits1 / Total Deposits

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Yield Analysis1 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Fed Rate Change Since Beginning of Rate Cycle – Q4 2021 5.18% 5.25% 5.25% 5.25% 5.18% Loans 49% 50% 53% 58% 59% Deposits 32% 34% 38% 37% 39% 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 $48.9M Total Classified Assets / Total Bank Regulatory Capital 8.32% Net Charge-offs YTD Annualized / Average Loans 0.13% 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 $2.68 IN Q3 2024 TO $28.38 Q2 Q3 Q3 Non-GAAP Financial Measure. Refer to the Non-GAAP reconciliation at the end of this presentation.

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As of September 30, 2024, the tangible common equity ratio is being negatively impacted by $40 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 8.90%.​ THE COMPANY’S CAPITAL RATIOS ARE WELL CAPITALIZED LEVELS AS OF 9/30/2024 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 3rd QUARTER 2024 RESULTS ESTIMATES $4,260M Avg. Deposits $3,463M Avg. Loans $4,740M Avg. Earning Assets 3.85% Net Interest Margin $1.2M Provision For Credit Losses $9.3M Non-interest Income $30.3M Non-interest Expense1 16.7% Effective Tax Rate2 FORWARD LOOKING 4th QUARTER 2024 FY 2025E $4,300 – 4,350M $4,400 - 4,500M $3,600 - 3,650M $3,700 - 3,850M $4,775 - 4,850M $4,850 – 5,050M 3.85 - 3.95% 3.85 - 3.95% $0.5 – 1.5M $3 – 6M $8 – 9M $35 - 40M $34 - 37M $143 - 147M 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 and Focus Variables for Outlook and Forecast Core Non-interest Expense. Excludes merger expenses $4,325 – 4,375M $3,450 - 3,500M $4,750 - 4,800M 3.85 - 3.95% $0.5 – 1.5M $8 – 9M $34 - 37M 20 - 22%

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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 #8 Deposits $2.5B Deposit Market Share 4.10% Missouri Market Rank #7 Deposits $1.1B Deposit Market Share 1.91% Oklahoma Market Rank #15 Deposits $536M Deposit Market Share 1.63% Arkansas Market Rank #9 Deposits $317M Deposit Market Share 2.72% 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

v3.24.3

Document And Entity Information	Oct. 15, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 15, 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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