Equity Bancshares, Inc. Second Quarter Results Highlighted by Strong Earnings Momentum and Margin Expansion

EPS of $1.27 and Core EPS of $1.41 Reflects Franchise Earning Power

WICHITA, Kan.--(BUSINESS WIRE)--#EquityBankUSA--Equity Bancshares, Inc. (NYSE: EQBK), (“Equity”, “the Company,” “we,” “us,” “our”), the Wichita-based holding company of Equity Bank, reported net income of $26.4 million or $1.27 per diluted share for the quarter ended June 30, 2026. Core earnings per diluted share for the quarter was $1.41.

“This quarter demonstrates what we wanted to accomplish when we entered into and then closed the Frontier transaction on January 1. It has driven growth in both earnings and efficiency. Our ROATCE was 16.6% and our efficiency ratio was 53.4% both improving meaningfully. We have built the franchise to compete and continuously drive improving performance," said Brad S. Elliott, Chairman and CEO of Equity Bancshares.

“The core conversion is complete, the integration work is largely behind us, and our team is focused on what we do best: growing relationships, serving customers, and producing results. The second half of 2026 is about execution and organic growth, and Rick Sems has done a great job working with the entire team, both old and new, to position them to have the ability to grow organically," Mr. Elliott continued.

Notable Items:

• Net interest income was $73.8 million, up modestly quarter over quarter and 48.3% year over year. Margin expanded in the period from 4.33% to 4.36%. Loan purchase accounting accretion was $2.9 million in the quarter.
• Efficiency ratio for the period improved to 53.4% from 56.7% in the previous period. As compared to the same period in 2025, the ratio improved 10.2 percentage points, or 16.1%. Non-interest expense, adjusted for merger expenses and intangible amortization, as a percentage of average assets improved 14 basis points quarter over quarter and 54 basis points year over year.
• Return on average equity for the quarter was 12.9%, up from 8.2% in the previous quarter. Adjusting for merger costs and amortization of intangible assets in both periods, return on tangible common equity ("ROATCE") improved to 16.6% from 16.1% in the previous quarter. As compared to the same period in the prior year, return on tangible common equity improved 4.9%, from 11.7%. Core ROATCE was 17.2% for the quarter.
• Book value per share increased to $40.22 from $39.37 and tangible book value per share increased to $33.45 from $32.58. Tangible common equity to tangible common assets closed the quarter at 9.1%.
• During the quarter, the Company realized net charge-offs of $1.7 million. The allowance for credit losses (“ACL”) closed the quarter at 1.19% of outstanding balances, while ACL plus purchase discounts on loans closed the quarter at 1.73%.
• The Company announced an $0.18 dividend on outstanding common shares as of June 30, 2026. During the quarter, the Company repurchased 211,369 shares at a weighted average cost of $45.02 per share. Year to date the Company has repurchased 711,369 shares at a weighted average cost of $44.84. Under the currently active repurchase plan, 116,293 additional shares are authorized for purchase.

Financial Results for the Quarter Ended June 30, 2026

Net income was $26.4 million, or $1.27 per diluted share, as compared to $17.0 million, or $0.80 per diluted share in the prior quarter. Core net income was $29.4 million or $1.41 per diluted share, demonstrating the underlying earnings power of the franchise.

The drivers of the current period results are discussed in detail in the following sections.

Net Interest Income

Net interest income was $73.9 million for the period, as compared to $73.7 million in the previous quarter. Net interest margin was 4.36%, up 3 basis points from 4.33% in the prior quarter. The expansion was driven by a favorable shift in earning asset composition toward higher-yielding categories and increased discount accretion on bonds called during the quarter. Average interest-earning assets were $6.8 billion. The yield on interest-earning assets increased 1 basis point while cost of interest-bearing liabilities decreased by 5 basis points. Looking ahead, management anticipates a modestly lower margin of 4.25% to 4.35% for the remainder of 2026 as earning assets expand.

Provision for Credit Losses

During the quarter, the Company recognized a provision for loan losses of $1.3 million, decreasing significantly from the prior quarter which was elevated due to integration of Frontier balances into the reserve framework. Net charge-offs were $1.7 million, or an annualized 12 basis points of average loans. At quarter end, ACL to gross loans held for investment was 1.19% and ACL plus purchase discounts was 1.73%. The Company continues to estimate the allowance with assumptions reflecting slower prepayment rates and continued disruption from trade policy, elevated inflation, and monetary policy pressures.

Non-Interest Income

Total non-interest income was $8.1 million, down $1.4 million from the prior quarter. Results were negatively impacted by losses on security transactions and the write-down of a fund investment of $2.2 million. Adjusted for these losses, non-interest income was $10.3 million, up $0.7 million linked quarter, reflecting growth in debit and credit card income along with expansion in mortgage and trust and wealth management revenue. Non-interest income for the second half of 2026 is expected in the range of $18 to $22 million.

Non-Interest Expense

Total non-interest expense was $46.9 million as compared to $55.0 million for the prior quarter. Excluding merger expenses in both periods, non-interest expense was $46.8 million versus $49.2 million, a decrease of $2.5 million or 5.1%. The improvement reflects ongoing operational efficiency gains and the impact of the core system conversion completed in the first quarter. Non-interest expense for the second half of 2026 is expected in the range of $94 to $98 million.

Income Tax Expense

At June 30, 2026, the effective tax rate for the quarter was 21.6% as compared to 23.7% for the quarter ended March 31, 2026. The decrease in the effective tax rate was primarily attributable to the nonrecurrence of state tax expense recognized in the first quarter related to the remeasurement of deferred tax assets, partially offset by lower tax benefits associated with restricted stock units in the second quarter. The first-quarter remeasurement was driven by decreased state apportionment, which resulted in certain deferred tax assets being measured at a lower state tax rate. The year-to-date tax rate is 22.4% as compared to 18.6% at June 30, 2025.

Loans, Total Assets and Funding

Loans held for investment were $5.4 billion at period end, decreasing $22.6 million during the quarter. Total assets closed the quarter at $7.7 billion, remaining consistent with the prior quarter end.

Total deposit balances closed the quarter at $6.3 billion, remaining consistent with the previous quarter end. Brokered deposits closed the quarter at 8.0% of total deposits up from 5.7% at prior quarter end.

Asset Quality

Nonperforming assets were $66.3 million, or 0.86% of total assets, compared to $58.4 million or 0.76% at prior quarter end. The increase is primarily attributable to additions from the Frontier portfolio. Classified assets to regulatory capital remained stable at 11.9%. The Company continues to actively manage credit quality across all markets.

Capital

Book capital increased $9.6 million quarter over quarter to $827.3 million. Tangible book value per share closed at $33.45, up from $32.58 at prior quarter end. CET1 capital was 11.84%, total risk-based capital was 14.66%, and the leverage ratio was 9.97%. The Company has repurchased 711,369 shares year to date at a weighted average price of $44.84 per share. The dividend payout ratio year to date was 17.4%, within the Company's 10 to 20% target range.

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.

Core income calculations are a non-GAAP measure that management believes is an effective alternative measure of how efficiently the company utilizes its asset base. Core income is calculated by adjusting GAAP income by non-core gains and losses and excluding non-core expenses, net of tax, as outlined in the table below. We calculate (a) core net income (loss) allocable to common stockholders plus merger expenses, tax effected non-core items, goodwill impairment and BOLI tax adjustment, less gain (loss) from securities transactions; (b) adjusted operating net income as net income (loss) allocable to common stockholders plus adjusted non-core items, tax effected non-core items and BOLI tax adjustments.

Core 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.

Core return on average equity is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate by taking core net income allocable to common stockholders divided by a simple average of net income and core net income plus average stockholders' equity. For return on average equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity.

Core earnings per share is a non-GAAP financial measure we calculate by taking GAAP net income less non-core impacts to net income to arrive at core net income and core diluted earnings per share. This financial measure is used by financial statement users to evaluate the core financial performance of the Company.

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, Chief Executive Officer of Equity Bank, Rick Sems, and Chief Financial Officer, Chris Navratil, will hold a conference call and webcast on July 15, 2026 at 9:00 a.m. Central Time to discuss the Company's financial results.

Those wishing to participate in the conference call should call the applicable number below and reference the Access Code below.

United States (Local): +1 626 884 3620
United States (Toll-Free): +1 833 461 5787
Global Dial-In Numbers
Access Code: 797391070

To eliminate wait times, conference call participants may pre-register using this registration link. After registering, a confirmation with access details will be sent via email.

A replay of the call and webcast will be available two hours following the close of the call until July 31, 2026, accessible at investor.equitybank.com. Webcast URL: https://events.q4inc.com/attendee/797391070

About Equity Bancshares, Inc.

Equity Bancshares, Inc. is a Wichita-based bank holding company. Equity Bank serves customers in Kansas, Missouri, Oklahoma, Arkansas, Nebraska, and Iowa, with total assets of $7.7 billion as of June 30, 2026. More information is available at 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; the possibility that the expected benefits related to the proposed transaction with Frontier Bank (“Frontier”) may not materialize as expected; and the ability to successfully implement integration strategies or to achieve expected synergies and operating efficiencies within the expected time-frames or at all; 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 6, 2026, as amended, 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

Investor Contact:

Chris M. Navratil
EVP, Chief Financial Officer
Equity Bancshares, Inc.
(316) 612-6014
cnavratil@equitybank.com

Media Contact:

Russell Colburn
Public Relations and Communication Manager
Equity Bancshares, Inc.
(913) 583-8011
rcolburn@equitybank.com