Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Equity Bancshares, Inc. Second Quarter Results Highlighted by Record Net Interest Income and Net Interest Margin Expansion By: Equity Bancshares via Business Wire July 16, 2024 at 16:45 PM EDT Reports NIM of 3.94%, Announces Merger with KansasLand Bancshares, Inc., Adding to Kansas Franchise 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 Bank," 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: The Company realized earnings per diluted share of $0.99, adjusted to exclude merger expenses of $2.3 million and $1.7 million in surrender costs related to repositioning of BOLI contracts. The Company integrated the operations of its previously completed merger with Rockhold Bancshares, Inc., while also announcing and subsequently closing (July 1) its merger with KansasLand Bancshares, Inc. The Company realized expansion in net interest income and net interest margin, as the benefits of previously announced strategic transactions continued to be realized. Total net interest income for the quarter was $46.5 million, an all-time high for the Company. The Company was active in its share repurchase plan during the quarter, purchasing 152,982 shares at a weighted average cost of $33.35. Under the repurchase plan announced in the fourth quarter of 2023, 637,427 shares remain available for purchase. Classified assets as a percentage of total risk based capital at Equity Bank closed the period at 8.5% while non-performing assets remained historically low. The allowance for credit losses closed the quarter at 1.3% of total loans. 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 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. 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. 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 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. Unaudited Financial Tables Table 1. Consolidated Statements of Income Table 2. Quarterly Consolidated Statements of Income Table 3. Consolidated Balance Sheets Table 4. Selected Financial Highlights Table 5. Year-To-Date Net Interest Income Analysis Table 6. Quarter-To-Date Net Interest Income Analysis Table 7. Quarter-Over-Quarter Net Interest Income Analysis Table 8. Non-GAAP Financial Measures 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 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 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 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. 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. 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. 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. 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 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20240716962204/en/Contacts 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 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Equity Bancshares, Inc. Second Quarter Results Highlighted by Record Net Interest Income and Net Interest Margin Expansion By: Equity Bancshares via Business Wire July 16, 2024 at 16:45 PM EDT Reports NIM of 3.94%, Announces Merger with KansasLand Bancshares, Inc., Adding to Kansas Franchise 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 Bank," 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: The Company realized earnings per diluted share of $0.99, adjusted to exclude merger expenses of $2.3 million and $1.7 million in surrender costs related to repositioning of BOLI contracts. The Company integrated the operations of its previously completed merger with Rockhold Bancshares, Inc., while also announcing and subsequently closing (July 1) its merger with KansasLand Bancshares, Inc. The Company realized expansion in net interest income and net interest margin, as the benefits of previously announced strategic transactions continued to be realized. Total net interest income for the quarter was $46.5 million, an all-time high for the Company. The Company was active in its share repurchase plan during the quarter, purchasing 152,982 shares at a weighted average cost of $33.35. Under the repurchase plan announced in the fourth quarter of 2023, 637,427 shares remain available for purchase. Classified assets as a percentage of total risk based capital at Equity Bank closed the period at 8.5% while non-performing assets remained historically low. The allowance for credit losses closed the quarter at 1.3% of total loans. 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 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. 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. 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 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. Unaudited Financial Tables Table 1. Consolidated Statements of Income Table 2. Quarterly Consolidated Statements of Income Table 3. Consolidated Balance Sheets Table 4. Selected Financial Highlights Table 5. Year-To-Date Net Interest Income Analysis Table 6. Quarter-To-Date Net Interest Income Analysis Table 7. Quarter-Over-Quarter Net Interest Income Analysis Table 8. Non-GAAP Financial Measures 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 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 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 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. 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. 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. 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. 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 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20240716962204/en/Contacts 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
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 Bank," 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: The Company realized earnings per diluted share of $0.99, adjusted to exclude merger expenses of $2.3 million and $1.7 million in surrender costs related to repositioning of BOLI contracts. The Company integrated the operations of its previously completed merger with Rockhold Bancshares, Inc., while also announcing and subsequently closing (July 1) its merger with KansasLand Bancshares, Inc. The Company realized expansion in net interest income and net interest margin, as the benefits of previously announced strategic transactions continued to be realized. Total net interest income for the quarter was $46.5 million, an all-time high for the Company. The Company was active in its share repurchase plan during the quarter, purchasing 152,982 shares at a weighted average cost of $33.35. Under the repurchase plan announced in the fourth quarter of 2023, 637,427 shares remain available for purchase. Classified assets as a percentage of total risk based capital at Equity Bank closed the period at 8.5% while non-performing assets remained historically low. The allowance for credit losses closed the quarter at 1.3% of total loans. 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 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. 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. 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 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. Unaudited Financial Tables Table 1. Consolidated Statements of Income Table 2. Quarterly Consolidated Statements of Income Table 3. Consolidated Balance Sheets Table 4. Selected Financial Highlights Table 5. Year-To-Date Net Interest Income Analysis Table 6. Quarter-To-Date Net Interest Income Analysis Table 7. Quarter-Over-Quarter Net Interest Income Analysis Table 8. Non-GAAP Financial Measures 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 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 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 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. 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. 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. 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. 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 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 View source version on businesswire.com: https://www.businesswire.com/news/home/20240716962204/en/
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