On September 2, 2025, Wichita, KS-based Equity Bancshares, Inc. (NYSE: EQBK) ("Equity” or “the company"), and Omaha, NE-based Frontier Holdings, LLC (“Frontier”), parent company of Frontier Bank, jointly announced that they had entered into a definitive agreement pursuant to which Equity Bancshares, Inc. would acquire Frontier Holdings, LLC and Frontier Bank would merge with and into Equity Bank. The proposed transaction, valued at ~$120 million (P/TBV: 1.23x), incorporates a 75% stock / 25% cash consideration mix and is expected to close in 4Q25 pending regulatory approval.

The contemplated transaction would expand the banking franchise into Eastern Nebraska, notably in Omaha and Lincoln MSAs, adding $1.3 billion in loans and $1.1 billion in deposits, resulting in a combined institution with ~$8 billion in assets, ~$5.6 billion in loans, and ~$6.3 billion in deposits. The acquisition is aligned with Equity’s growth strategy which includes the consolidation of community banks within the company’s existing footprint of KS, MO, OK, and AR, and in contiguous markets, and the company’s management team has a strong track record of acquiring and integrating smaller community banks.

Concurrent with the merger announcement, Equity also noted that it had completed a restructuring of its securities portfolio, selling ~$360 million of AFS securities and generating an estimated after-tax loss of ~$32 million (~$42 million pre-tax) to be reported in 3Q25. Inclusive of the announced securities repositioning and considering pro forma merger projections, Equity expects the TCE/TA ratio to remain in a mid-8% range, with CET1 and Total Risk Based Capital measures of ~11% and ~13.7%, respectively, upon closing the Frontier transaction. Though down meaningfully from 2Q25, these projected capital metrics remain supportive of the company’s ratings.

KBRA anticipates that the announced transactions will be accretive to earnings through a combination of NIM expansion, revenue growth opportunities, and cost savings. We do not anticipate major changes to Equity’s funding or asset quality profile. While M&A remains a core part of the company’s growth strategy, KBRA expects management to focus on integrating Frontier and NBC Oklahoma (closed on July 2, 2025) and rebuilding core capital ratios prior to announcing additional bank acquisitions.

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