Equity Bancshares, Inc. Fourth Quarter Results Include Net Interest Margin Expansion and Close of Common Equity Capital Raise

WICHITA, Kan.--(BUSINESS WIRE)--Equity Bancshares, Inc. (NYSE: EQBK), (“Equity”, “the Company,” “we,” “us,” “our”), the Wichita-based holding company of Equity Bank, reported net income of $17.0 million or $1.04 earnings per diluted share for the quarter ended December 31, 2024. “Our Company had an excellent year as we realized expansion of our footprint, our balance sheet and our ownership group,” said Brad S. Elliott, Chairman and CEO of Equity. “Our team remains committed to generating value for our customers, our employees and our shareholders and enters 2025 positioned to execute.” “During the quarter, we were able to successfully bolster our capital through a common stock raise,” Mr. Elliott continued. “The additive equity positions our Company to be opportunistic in delivering on our two-prong growth strategy of organic production and strategic acquisition. We continue to be optimistic about opportunities to deploy these in the markets in which we operate.” Notable Items: The Company realized earnings per diluted share of $1.04. Margin for the quarter was 4.17% positively impacted by non-recurring nonaccrual reversals and prepayment fees of approximately $1.5 million. Excluding these non-recurring items, margin for the quarter was 4.04% an increase of 17 basis points as compared to the previous quarter. The Company realized book value per share expansion of $1.07 per share, or 3.2%. Tangible book value per share improved $1.69 per share, or 6.0%. Book value per share excluding AOCI increased $1.61, or 4.5%. Tangible common equity to tangible assets closed the period at 9.95%. The Company completed a common stock capital raise, issuing 2,067,240 shares at a price of $44.50 per share. After expense capital impact totaled $87.0 million. Deposit balances, excluding brokered, increased $211.2 million driven by seasonal inflows on municipality relationships. Full year growth in deposits, excluding brokered, was $304.2 million, or 7.3%. Loan balances closed the period at $3.5 billion, reflecting full year growth of $167.9 million, or 5.0%. The loan-to-deposit ratio closed the period at 80.0%. Realized opposing asset quality trends as nonaccrual loans declined from $31.3 million to $27.1, or 0.77% of total loans while classified assets increased to $73.5 million or 12.10% of bank regulatory capital. Reserves as a percentage of loans increased to 1.24%. The Company announced a $0.15 dividend on outstanding common shares as of December 31, 2024. Our repurchase program remains active, though no shares were purchased during the quarter. The Company is also pleased to announce the return of Greg Kossover to the executive management team. Mr. Kossover will be returning to the team in February and will lead our Capital Markets division while also retaining his role as a director of the Company and Equity Bank. “Greg’s expertise, strategic vision, and commitment to excellence will be instrumental as we continue to drive growth and deliver exceptional value to our shareholders,” said Rick Sems, Equity Bank President & CEO. “We look forward to the positive impact Greg will undoubtedly have as we move forward together.” Financial Results for the Quarter Ended December 31, 2024 Net income allocable to common stockholders was $17.0 million, or $1.04 per diluted share. Excluding merger expenses and gains or losses on security transactions, net income was $20.3 million, or $1.31 per diluted share in the previous quarter. The drivers of the periodic change are discussed in detail in the following sections. Net Interest Income Net interest income was $49.5 million for the period, as compared to $46.0 million for previous quarter. Adjusting the stated number for non-recurring nonaccrual reversals and excess prepayment fee realization of $1.5 million, net interest income was $48.0 for the quarter. The periodic increase primarily was driven by downward re-pricing of liabilities which outpaced the downward re-pricing of assets in an environment that saw multiple interest rate cuts by the FOMC. For the quarter, cost of interest bearing liabilities were 2.80% for the quarter down 31 basis points from 3.11% while yield on interest earning assets was 6.32% up 2 basis points from 6.30%. Excluding the previously discussed non-recurring items, yield on interest earning assets would have been 6.20%. Total earning assets declined slightly during the quarter as higher loan balances were offset by declining cash and security positions as excess cash flows were used to payoff debt and brokered funding versus reinvestment. Provision for Credit Losses During the quarter, there was a provision of $98 thousand compared to a provision of $1.2 million in the previous quarter. The level of provision was primarily attributable to charge-offs during the quarter offset by declining loan balances. 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 $322 thousand as compared to $1.6 million for the previous quarter. Non-Interest Income Total non-interest income was $8.8 million for the quarter, as compared to $9.3 million linked quarter. Excluding the $831 thousand gain on acquisition from linked quarter results, non-interest income was up $330 thousand. Non-Interest Expense Total non-interest expense for the quarter was $37.8 million as compared to $30.3 million for the previous quarter. Prior quarter results included $8.5 million in benefit from a borrower’s repurchase of our preferred equity interest offset by a $742 thousand write-down on a previous bank location and $618 thousand in merger expense. Adjusting for these items, non-interest expense in the prior quarter would have been $37.4 million. Income Tax Expense The effective tax rate for the quarter ending, December 31, 2024, was 16.7% which remains consistent with the 16.7% reported for the prior quarter. The year-to-date effective tax rate is 20.0% as compared to 21.2% at September 30, 2024. The decrease in the year-to-date tax rate is associated with a decrease in the impact of tax rate reconciling items recognized as a percent of pre-tax book income, reductions in the effective state tax rate to align with state tax filings, and excess tax benefits related to stock compensation recognized in the quarter. Loans, Total Assets and Funding Loans held for investment were $3.5 billion at December 31, 2024, decreasing $100.1 million during the quarter. Total assets were $5.3 billion as of the end of the period, decreasing $23.2 million during the quarter. Total deposits were $4.4 billion at December 31, 2024, increasing $11.9 million from the previous quarter end. Of the total deposit balance, non-interest-bearing accounts comprise approximately 21.8%. Total Federal Home Loan Bank borrowings were $178.1 million as of the end of the quarter, down $117.9 million from previous quarter end. Asset Quality As of December 31, 2024, Equity’s allowance for credit losses to total loans was 1.2% up 3 basis points as compared to previous quarter end. Nonperforming assets were $34.7 million as of December 31, 2024, or 0.7% of total assets, compared to $32.4 million at September 30, 2024, or 0.6% of total assets. The increase was driven by one Main Street Lending Program loan which was foreclosed and is held in Other Real Estate Owned at its gross balance. Reducing this to reflect only the Bank’s portion (5%) would result in ending non-performing assets of $31.0 million. Non-accrual loans were $27.1 million at December 31, 2024, as compared to $31.3 million at September 30, 2024. Total classified assets, including loans rated special mention or worse, other real estate owned, excluding previous branch locations, and other repossessed assets were $73.5 million, or 12.1% of regulatory capital, up from $48.9 million, or 8.3% of regulatory capital as of September 30, 2024. Capital Quarter over quarter, book capital increased $88.9 million to $592.9 million and tangible capital increased $90.0 million to $523.9 million. Tangible book value per share closed the quarter at $30.07, increasing 6.0% compared to prior quarter. The increase in capital is primarily due to completion of a common stock capital raise in December through which the Company issued 2,067,240 shares at a price of $44.50. After accounting for costs to issue, the raise added $87.0 million in common equity capital. The remaining change to book and tangible capital during the quarter was attributable to earnings offset by an increase in unrealized losses reflected in AOCI. The Company’s ratio of common equity tier 1 capital to risk-weighted assets was 14.5%, the total capital to risk-weighted assets was 18.1% and the total leverage ratio was 11.7% at December 31, 2024. At September 30, 2024, the Company’s common equity tier 1 capital to risk-weighted assets ratio was 11.4%, the total capital to risk-weighted assets ratio was 14.8% and the total leverage ratio was 9.6%. Equity Bank's ratio of common equity tier 1 capital to risk-weighted assets was 14.1%, total capital to risk-weighted assets was 15.3% and the total leverage ratio was 10.9% at December 31, 2024. At September 30, 2024, Equity Bank’s ratio of common equity tier 1 capital to risk-weighted assets was 13.0%, the ratio of total capital to risk-weighted assets was 14.1% and the total leverage ratio was 10.4%. 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 fourth quarter results on Thursday, January 23, 2025, at 10 a.m. eastern time or 9 a.m. central time. A live webcast of the call will be available on the Company’s website at investor.equitybank.com. To access the call by phone, please go to this registration link, and you will be provided with dial in details. Investors, news media, and other participants are encouraged to dial into the conference call ten minutes ahead of the scheduled start time. A replay of the call and webcast will be available following the close of the call at investor.equitybank.com. About Equity Bancshares, Inc. Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions, including commercial loans, consumer banking, mortgage loans, trust and wealth management services and treasury management services, while delivering the high-quality, relationship-based customer service of a community bank. Equity’s common stock is traded on the NYSE National, Inc. under the symbol “EQBK.” Learn more at www.equitybank.com. Special Note Concerning Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “positioned,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive. 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, except per share data) Three months ended December 31, Year ended December 31, 2024 2023 2024 2023 Interest and dividend income Loans, including fees $ 63,379 $ 54,932 $ 245,815 $ 211,213 Securities, taxable 9,229 6,417 39,091 23,873 Securities, nontaxable 387 354 1,579 1,960 Federal funds sold and other 1,984 2,591 10,358 9,666 Total interest and dividend income 74,979 64,294 296,843 246,712 Interest expense Deposits 21,213 20,074 90,409 70,473 Federal funds purchased and retail repurchase agreements 258 298 1,151 931 Federal Home Loan Bank advances 2,158 1,005 10,180 3,944 Federal Reserve Bank borrowings — 1,546 1,361 4,755 Subordinated debt 1,877 1,904 7,580 7,591 Total interest expense 25,506 24,827 110,681 87,694 Net interest income 49,473 39,467 186,162 159,018 Provision (reversal) for credit losses 98 711 2,546 1,873 Net interest income after provision (reversal) for credit losses 49,375 38,756 183,616 157,145 Non-interest income Service charges and fees 2,296 2,299 9,830 10,187 Debit card income 2,513 2,524 10,246 10,322 Mortgage banking 141 125 861 652 Increase in value of bank-owned life insurance 1,883 925 4,966 4,059 Net gain on acquisition and branch sales — — 2,131 — Net gains (losses) from securities transactions (2 ) (50,618 ) 220 (51,909 ) Other 1,985 1,331 10,568 7,560 Total non-interest income 8,816 (43,414 ) 38,822 (19,129 ) Non-interest expense Salaries and employee benefits 18,368 16,598 72,786 64,384 Net occupancy and equipment 3,571 3,244 14,371 12,325 Data processing 4,988 4,471 20,004 17,433 Professional fees 1,846 1,413 6,503 5,754 Advertising and business development 1,469 1,598 5,366 5,425 Telecommunications 614 460 2,501 1,963 FDIC insurance 662 660 2,483 2,195 Courier and postage 687 577 2,599 2,046 Free nationwide ATM cost 558 508 2,127 2,073 Amortization of core deposit intangibles 1,060 739 4,289 3,374 Loan expense 154 155 601 540 Other real estate owned and repossessed assets, net 133 274 (7,525 ) 617 Merger expenses — 297 4,461 297 Other 3,696 4,004 13,591 17,175 Total non-interest expense 37,806 34,998 144,157 135,601 Income (loss) before income tax 20,385 (39,656 ) 78,281 2,415 Provision for income taxes (benefit) 3,399 (11,357 ) 15,660 (5,406 ) Net income (loss) and net income (loss) allocable to common stockholders $ 16,986 $ (28,299 ) $ 62,621 $ 7,821 Basic earnings (loss) per share $ 1.06 $ (1.84 ) $ 4.04 $ 0.50 Diluted earnings (loss) per share $ 1.04 $ (1.84 ) $ 4.00 $ 0.50 Weighted average common shares 16,020,938 15,417,200 15,489,370 15,535,772 Weighted average diluted common shares 16,262,965 15,417,200 15,671,674 15,648,842 TABLE 2. QUARTERLY CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share data) As of and for the three months ended December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 Interest and dividend income Loans, including fees $ 63,379 $ 62,089 $ 61,518 $ 58,829 $ 54,932 Securities, taxable 9,229 9,809 10,176 9,877 6,417 Securities, nontaxable 387 400 401 391 354 Federal funds sold and other 1,984 2,667 3,037 2,670 2,591 Total interest and dividend income 74,979 74,965 75,132 71,767 64,294 Interest expense Deposits 21,213 23,679 22,662 22,855 20,074 Federal funds purchased and retail repurchase agreements 258 261 306 326 298 Federal Home Loan Bank advances 2,158 3,089 3,789 1,144 1,005 Federal Reserve Bank borrowings — — — 1,361 1,546 Subordinated debt 1,877 1,905 1,899 1,899 1,904 Total interest expense 25,506 28,934 28,656 27,585 24,827 Net interest income 49,473 46,031 46,476 44,182 39,467 Provision (reversal) for credit losses 98 1,183 265 1,000 711 Net interest income after provision (reversal) for credit losses 49,375 44,848 46,211 43,182 38,756 Non-interest income Service charges and fees 2,296 2,424 2,541 2,569 2,299 Debit card income 2,513 2,665 2,621 2,447 2,524 Mortgage banking 141 287 245 188 125 Increase in value of bank-owned life insurance 1,883 1,344 911 828 925 Net gain on acquisition and branch sales — 831 60 1,240 — Net gains (losses) from securities transactions (2 ) 206 (27 ) 43 (50,618 ) Other 1,985 1,560 2,607 4,416 1,331 Total non-interest income 8,816 9,317 8,958 11,731 (43,414 ) Non-interest expense Salaries and employee benefits 18,368 18,494 17,827 18,097 16,598 Net occupancy and equipment 3,571 3,478 3,787 3,535 3,244 Data processing 4,988 5,152 5,036 4,828 4,471 Professional fees 1,846 1,487 1,778 1,392 1,413 Advertising and business development 1,469 1,368 1,291 1,238 1,598 Telecommunications 614 660 572 655 460 FDIC insurance 662 660 590 571 660 Courier and postage 687 686 620 606 577 Free nationwide ATM cost 558 544 531 494 508 Amortization of core deposit intangibles 1,060 1,112 1,218 899 739 Loan expense 154 143 195 109 155 Other real estate owned and repossessed assets, net 133 (7,667 ) 50 (41 ) 274 Merger expenses — 618 2,287 1,556 297 Other 3,696 3,593 3,089 3,213 4,004 Total non-interest expense 37,806 30,328 38,871 37,152 34,998 Income (loss) before income tax 20,385 23,837 16,298 17,761 (39,656 ) Provision for income taxes (benefit) 3,399 3,986 4,582 3,693 (11,357 ) Net income (loss) and net income (loss) allocable to common stockholders $ 16,986 $ 19,851 $ 11,716 $ 14,068 $ (28,299 ) Basic earnings (loss) per share $ 1.06 $ 1.30 $ 0.77 $ 0.91 $ (1.84 ) Diluted earnings (loss) per share $ 1.04 $ 1.28 $ 0.76 $ 0.90 $ (1.84 ) Weighted average common shares 16,020,938 15,258,822 15,248,703 15,425,709 15,417,200 Weighted average diluted common shares 16,262,965 15,451,545 15,377,980 15,569,225 15,417,200 TABLE 3. CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 ASSETS Cash and due from banks $ 383,503 $ 217,681 $ 244,321 $ 217,611 $ 363,289 Federal funds sold 244 17,802 15,945 17,407 15,810 Cash and cash equivalents 383,747 235,483 260,266 235,018 379,099 Available-for-sale securities 1,004,455 1,041,000 1,042,176 1,091,717 919,648 Held-to-maturity securities 5,217 5,408 5,226 2,205 2,209 Loans held for sale 513 901 1,959 1,311 476 Loans, net of allowance for credit losses(1) 3,457,549 3,557,435 3,410,920 3,437,714 3,289,381 Other real estate owned, net 4,773 2,786 2,989 1,465 1,833 Premises and equipment, net 117,132 117,013 114,264 116,792 112,632 Bank-owned life insurance 133,032 131,670 130,326 125,693 124,865 Federal Reserve Bank and Federal Home Loan Bank stock 27,875 34,429 33,171 27,009 20,608 Interest receivable 28,913 28,398 27,381 27,082 25,497 Goodwill 53,101 53,101 53,101 53,101 53,101 Core deposit intangibles, net 14,969 16,029 16,636 17,854 7,222 Other 100,771 131,580 147,102 102,075 98,021 Total assets $ 5,332,047 $ 5,355,233 $ 5,245,517 $ 5,239,036 $ 5,034,592 LIABILITIES AND STOCKHOLDERS’ EQUITY Deposits Demand $ 954,065 $ 967,858 $ 984,872 $ 981,623 $ 898,129 Total non-interest-bearing deposits 954,065 967,858 984,872 981,623 898,129 Demand, savings and money market 2,684,197 2,468,956 2,560,091 2,574,871 2,483,807 Time 736,527 926,130 796,474 814,532 763,519 Total interest-bearing deposits 3,420,724 3,395,086 3,356,565 3,389,403 3,247,326 Total deposits 4,374,789 4,362,944 4,341,437 4,371,026 4,145,455 Federal funds purchased and retail repurchase agreements 37,246 38,196 38,031 43,811 43,582 Federal Home Loan Bank advances and Federal Reserve Bank borrowings 178,073 295,997 250,306 219,931 240,000 Subordinated debt 97,477 97,336 97,196 97,058 96,921 Contractual obligations 12,067 19,683 23,770 18,493 19,315 Interest payable and other liabilities 39,477 37,039 33,342 31,941 36,459 Total liabilities 4,739,129 4,851,195 4,784,082 4,782,260 4,581,732 Commitments and contingent liabilities Stockholders’ equity Common stock 230 209 208 208 207 Additional paid-in capital 584,424 494,763 491,709 490,533 489,187 Retained earnings 194,920 180,588 163,068 153,201 141,006 Accumulated other comprehensive income (loss), net of tax (55,181 ) (40,012 ) (62,005 ) (60,788 ) (57,920 ) Treasury stock (131,475 ) (131,510 ) (131,545 ) (126,378 ) (119,620 ) Total stockholders’ equity 592,918 504,038 461,435 456,776 452,860 Total liabilities and stockholders’ equity $ 5,332,047 $ 5,355,233 $ 5,245,517 $ 5,239,036 $ 5,034,592 (1) Allowance for credit losses $ 43,267 $ 43,490 $ 43,487 $ 44,449 $ 43,520 TABLE 4. SELECTED FINANCIAL HIGHLIGHTS (Unaudited) (Dollars in thousands, except per share data) As of and for the three months ended December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Loans Held For Investment by Type Commercial real estate $ 1,830,514 $ 1,916,863 $ 1,793,544 $ 1,797,192 $ 1,759,855 Commercial and industrial 658,865 670,665 663,718 649,035 598,327 Residential real estate 566,766 567,063 572,523 581,988 556,328 Agricultural real estate 267,248 259,587 219,226 198,291 196,114 Agricultural 87,339 89,529 104,342 149,312 118,587 Consumer 90,084 97,218 101,054 106,345 103,690 Total loans held-for-investment 3,500,816 3,600,925 3,454,407 3,482,163 3,332,901 Allowance for credit losses (43,267 ) (43,490 ) (43,487 ) (44,449 ) (43,520 ) Net loans held for investment $ 3,457,549 $ 3,557,435 $ 3,410,920 $ 3,437,714 $ 3,289,381 Asset Quality Ratios Allowance for credit losses on loans to total loans 1.24 % 1.21 % 1.26 % 1.28 % 1.31 % Past due or nonaccrual loans to total loans 1.14 % 1.17 % 1.15 % 1.10 % 1.10 % Nonperforming assets to total assets 0.65 % 0.60 % 0.52 % 0.49 % 0.53 % Nonperforming assets to total loans plus other real estate owned 0.99 % 0.90 % 0.79 % 0.73 % 0.79 % Classified assets to bank total regulatory capital 12.10 % 8.32 % 8.47 % 6.85 % 7.09 % Selected Average Balance Sheet Data (QTD Average) Investment securities $ 1,012,698 $ 1,055,833 $ 1,065,979 $ 1,074,101 $ 985,591 Total gross loans receivable 3,525,765 3,475,885 3,459,476 3,452,553 3,293,755 Interest-earning assets 4,716,295 4,731,927 4,745,713 4,742,200 4,480,279 Total assets 5,163,166 5,205,017 5,196,259 5,152,915 4,892,712 Interest-bearing deposits 3,280,592 3,309,202 3,275,765 3,319,907 3,092,637 Borrowings 340,042 395,190 450,178 390,166 391,691 Total interest-bearing liabilities 3,620,634 3,704,392 3,725,943 3,710,073 3,484,328 Total deposits 4,243,159 4,275,424 4,250,843 4,254,883 4,019,362 Total liabilities 4,629,939 4,719,549 4,740,937 4,692,671 4,469,505 Total stockholders' equity 533,227 485,468 455,322 460,244 423,207 Tangible common equity* 463,657 414,644 383,899 398,041 361,451 Performance ratios Return on average assets (ROAA) annualized 1.31 % 1.52 % 0.91 % 1.10 % (2.29 )% Core return on average assets* 1.37 % 1.56 % 1.25 % 1.17 % 1.01 % Core return on average assets before income tax and provision for loan losses* 1.66 % 1.97 % 1.55 % 1.56 % 1.03 % Return on average equity (ROAE) annualized 12.67 % 16.27 % 10.35 % 12.29 % (26.53 )% Core return on average equity* 13.29 % 16.73 % 14.25 % 13.11 % 11.21 % Core return on average equity before income tax and provision for loan losses* 16.01 % 20.97 % 17.57 % 17.34 % 11.40 % Return on average tangible common equity (ROATCE) annualized* 15.30 % 19.92 % 13.31 % 14.96 % (30.39 )% Core return on average tangible common equity* 15.29 % 19.58 % 16.89 % 15.16 % 13.02 % Yield on loans annualized 7.15 % 7.11 % 7.15 % 6.85 % 6.62 % Cost of interest-bearing deposits annualized 2.57 % 2.85 % 2.78 % 2.77 % 2.58 % Cost of total deposits annualized 1.99 % 2.20 % 2.14 % 2.16 % 1.98 % Net interest margin annualized 4.17 % 3.87 % 3.94 % 3.75 % 3.49 % Efficiency ratio* 63.02 % 52.59 % 63.77 % 63.45 % 72.69 % Non-interest income / average assets 0.68 % 0.71 % 0.69 % 0.92 % (3.52 )% Non-interest expense / average assets 2.91 % 2.32 % 3.01 % 2.90 % 2.84 % Core non-interest expense / average assets* 2.83 % 2.18 % 2.73 % 2.71 % 2.75 % Capital Ratios Tier 1 Leverage Ratio 11.67 % 9.55 % 9.14 % 9.10 % 9.46 % Common Equity Tier 1 Capital Ratio 14.51 % 11.37 % 11.12 % 11.14 % 11.74 % Tier 1 Risk Based Capital Ratio 15.11 % 11.94 % 11.70 % 11.73 % 12.36 % Total Risk Based Capital Ratio 18.07 % 14.78 % 14.61 % 14.71 % 15.48 % Total stockholders' equity to total assets 11.12 % 9.41 % 8.80 % 8.72 % 8.99 % Tangible common equity to tangible assets* 9.95 % 8.21 % 7.55 % 7.45 % 7.87 % Dividend payout ratio 15.62 % 11.74 % 15.79 % 13.31 % (6.65 )% Book value per common share $ 34.04 $ 32.97 $ 30.36 $ 29.80 $ 29.35 Tangible book value per common share* $ 30.07 $ 28.38 $ 25.70 $ 25.10 $ 25.37 Tangible book value per diluted common share* $ 29.70 $ 28.00 $ 25.44 $ 24.87 $ 25.05 Core earnings per diluted share* $ 1.10 $ 1.32 $ 1.05 $ 0.96 $ 0.81 Core pre-tax pre-provision earnings per diluted share* $ 1.33 $ 1.67 $ 1.31 $ 1.28 $ 0.83 * The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures, see Table 8. Non-GAAP Financial Measures. TABLE 5. YEAR-TO-DATE NET INTEREST INCOME ANALYSIS (Unaudited) (Dollars in thousands) For the year ended For the year ended December 31, 2024 December 31, 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 $ 635,881 $ 51,188 8.05 % $ 580,451 $ 42,901 7.39 % Commercial real estate 1,400,661 99,316 7.09 % 1,302,568 83,441 6.41 % Real estate construction 416,296 36,004 8.65 % 447,516 33,764 7.54 % Residential real estate 563,176 26,505 4.71 % 565,711 23,799 4.21 % Agricultural real estate 227,341 16,848 7.41 % 201,326 13,820 6.86 % Agricultural 96,877 9,103 9.40 % 100,394 6,966 6.94 % Consumer 100,995 6,851 6.78 % 106,542 6,522 6.12 % Total loans 3,441,227 245,815 7.14 % 3,304,508 211,213 6.39 % Securities Taxable securities 979,926 39,091 3.99 % 1,027,726 23,873 2.32 % Nontaxable securities 59,597 1,579 2.65 % 74,917 1,960 2.62 % Total securities 1,039,523 40,670 3.91 % 1,102,643 25,833 2.34 % Federal funds sold and other 195,378 10,358 5.30 % 193,941 9,666 4.98 % Total interest-earning assets $ 4,676,128 296,843 6.35 % $ 4,601,092 246,712 5.36 % Interest-bearing liabilities Demand, savings and money market deposits $ 2,453,139 61,518 2.51 % $ 2,362,365 46,206 1.96 % Time deposits 770,772 28,891 3.75 % 827,652 24,267 2.93 % Total interest-bearing deposits 3,223,911 90,409 2.80 % 3,190,017 70,473 2.21 % FHLB advances 216,012 10,180 4.71 % 98,380 3,944 4.01 % Other borrowings 175,516 10,092 5.75 % 254,666 13,277 5.21 % Total interest-bearing liabilities $ 3,615,439 110,681 3.06 % $ 3,543,063 87,694 2.48 % Net interest income $ 186,162 $ 159,018 Interest rate spread 3.29 % 2.88 % Net interest margin (2) 3.98 % 3.46 % (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 December 31, 2024 December 31, 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 $ 651,733 $ 12,780 7.80 % $ 580,726 $ 11,397 7.79 % Commercial real estate 1,402,966 25,978 7.37 % 1,309,588 21,630 6.55 % Real estate construction 463,885 9,654 8.28 % 439,708 9,000 8.12 % Residential real estate 567,123 6,571 4.61 % 561,382 5,866 4.15 % Agricultural real estate 262,529 5,071 7.68 % 196,468 3,421 6.91 % Agricultural 82,986 1,705 8.17 % 100,226 1,928 7.63 % Consumer 94,543 1,620 6.82 % 105,657 1,690 6.35 % Total loans 3,525,765 63,379 7.15 % 3,293,755 54,932 6.62 % Securities Taxable securities 953,627 9,229 3.85 % 932,376 6,417 2.73 % Nontaxable securities 59,071 387 2.61 % 53,215 354 2.64 % Total securities 1,012,698 9,616 3.78 % 985,591 6,771 2.73 % Federal funds sold and other 177,832 1,984 4.44 % 200,933 2,591 5.12 % Total interest-earning assets $ 4,716,295 74,979 6.32 % $ 4,480,279 64,294 5.69 % Interest-bearing liabilities Demand, savings and money market deposits $ 2,448,539 13,429 2.18 % $ 2,351,663 13,918 2.35 % Time deposits 832,053 7,784 3.72 % 740,974 6,156 3.30 % Total interest-bearing deposits 3,280,592 21,213 2.57 % 3,092,637 20,074 2.58 % FHLB advances 194,914 2,158 4.41 % 102,432 1,005 3.89 % Other borrowings 145,128 2,135 5.86 % 289,259 3,748 5.14 % Total interest-bearing liabilities $ 3,620,634 25,506 2.80 % $ 3,484,328 24,827 2.83 % Net interest income $ 49,473 $ 39,467 Interest rate spread 3.52 % 2.86 % Net interest margin (2) 4.17 % 3.49 % (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 December 31, 2024 September 30, 2024 Average Outstanding Balance Interest Income/ Expense Average Yield/Rate(3)(4) Average Outstanding Balance Interest Income/ Expense Average Yield/Rate(3)(4) Interest-earning assets Loans (1) Commercial and industrial $ 651,733 $ 12,780 7.80 % $ 659,697 $ 13,213 7.97 % Commercial real estate 1,402,966 25,978 7.37 % 1,351,407 24,196 7.12 % Real estate construction 463,885 9,654 8.28 % 442,857 9,732 8.74 % Residential real estate 567,123 6,571 4.61 % 578,702 6,912 4.75 % Agricultural real estate 262,529 5,071 7.68 % 251,595 4,365 6.90 % Agricultural 82,986 1,705 8.17 % 91,500 1,906 8.29 % Consumer 94,543 1,620 6.82 % 100,127 1,765 7.01 % Total loans 3,525,765 63,379 7.15 % 3,475,885 62,089 7.11 % Securities Taxable securities 953,627 9,229 3.85 % 995,713 9,809 3.92 % Nontaxable securities 59,071 387 2.61 % 60,120 400 2.65 % Total securities 1,012,698 9,616 3.78 % 1,055,833 10,209 3.85 % Federal funds sold and other 177,832 1,984 4.44 % 200,209 2,667 5.30 % Total interest-earning assets $ 4,716,295 74,979 6.32 % $ 4,731,927 74,965 6.30 % Interest-bearing liabilities Demand savings and money market deposits $ 2,448,539 13,429 2.18 % $ 2,555,916 16,484 2.57 % Time deposits 832,053 7,784 3.72 % 753,286 7,195 3.80 % Total interest-bearing deposits 3,280,592 21,213 2.57 % 3,309,202 23,679 2.85 % FHLB advances 194,914 2,158 4.41 % 252,751 3,089 4.86 % Other borrowings 145,128 2,135 5.86 % 142,439 2,166 6.05 % Total interest-bearing liabilities $ 3,620,634 25,506 2.80 % $ 3,704,392 28,934 3.11 % Net interest income $ 49,473 $ 46,031 Interest rate spread 3.52 % 3.19 % Net interest margin (2) 4.17 % 3.87 % (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 December 31, September 30, June 30, March 31, December 31, 2024 2024 2024 2024 2023 Total stockholders' equity $ 592,918 $ 504,038 $ 461,435 $ 456,776 $ 452,860 Less: goodwill 53,101 53,101 53,101 53,101 53,101 Less: core deposit intangibles, net 14,969 16,029 16,636 17,854 7,222 Less: mortgage servicing rights, net — — 25 50 75 Less: naming rights, net 957 968 979 989 1,000 Tangible common equity $ 523,891 $ 433,940 $ 390,694 $ 384,782 $ 391,462 Common shares outstanding at period end 17,419,858 15,288,309 15,200,194 15,327,799 15,428,251 Diluted common shares outstanding at period end 17,636,843 15,497,466 15,358,396 15,469,531 15,629,185 Book value per common share $ 34.04 $ 32.97 $ 30.36 $ 29.80 $ 29.35 Tangible book value per common share $ 30.07 $ 28.38 $ 25.70 $ 25.10 $ 25.37 Tangible book value per diluted common share $ 29.70 $ 28.00 $ 25.44 $ 24.87 $ 25.05 Total assets $ 5,332,047 $ 5,355,233 $ 5,245,517 $ 5,239,036 $ 5,034,592 Less: goodwill 53,101 53,101 53,101 53,101 53,101 Less: core deposit intangibles, net 14,969 16,029 16,636 17,854 7,222 Less: mortgage servicing rights, net — — 25 50 75 Less: naming rights, net 957 968 979 989 1,000 Tangible assets $ 5,263,020 $ 5,285,135 $ 5,174,776 $ 5,167,042 $ 4,973,194 Total stockholders' equity to total assets 11.12 % 9.41 % 8.80 % 8.72 % 8.99 % Tangible common equity to tangible assets 9.95 % 8.21 % 7.55 % 7.45 % 7.87 % Total average stockholders' equity $ 533,227 $ 485,468 $ 455,322 $ 460,244 $ 423,207 Less: average intangible assets 69,570 70,824 71,423 62,203 61,756 Average tangible common equity $ 463,657 $ 414,644 $ 383,899 $ 398,041 $ 361,451 Net income (loss) allocable to common stockholders $ 16,986 $ 19,851 $ 11,716 $ 14,068 $ (28,299 ) Less: net gain on acquisition — 831 60 1,240 — Less: net gain (loss) on securities transactions (2 ) 206 (27 ) 43 (50,618 ) Add: merger expenses — 618 2,287 1,556 297 Add: BOLI tax expense — — 1,730 — — Add: amortization of intangible assets 1,071 1,148 1,254 935 775 Less: tax effect of pre-tax adjustments 225 153 737 254 10,855 Core net income (loss) allocable to common stockholders $ 17,834 $ 20,427 $ 16,217 $ 15,022 $ 12,536 Return on total average stockholders' equity (ROAE) annualized 12.67 % 16.27 % 10.35 % 12.29 % (26.53 )% Average tangible common equity $ 463,657 $ 414,644 $ 383,899 $ 398,041 $ 361,451 Average impact from core earnings adjustments 424 288 2,251 477 20,418 Core average tangible common equity $ 464,081 $ 414,932 $ 386,150 $ 398,518 $ 381,869 Return on average tangible common equity (ROATCE) annualized 15.30 % 19.92 % 13.31 % 14.96 % (30.39 )% Core return on average tangible common equity (CROATCE) annualized 15.29 % 19.58 % 16.89 % 15.16 % 13.02 % Non-interest expense $ 37,806 $ 30,328 $ 38,871 $ 37,152 $ 34,998 Less: merger expense — 618 2,287 1,556 297 Less: amortization of intangible assets 1,071 1,148 1,254 935 775 Adjusted non-interest expense $ 36,735 $ 28,562 $ 35,330 $ 34,661 $ 33,926 Net interest income $ 49,473 $ 46,031 $ 46,476 $ 44,182 $ 39,467 Non-interest income 8,816 9,317 8,958 11,731 (43,414 ) Less: net gain on acquisition and branch sales — 831 60 1,240 — Less: net gains (losses) from securities transactions (2 ) 206 (27 ) 43 (50,618 ) Adjusted non-interest income $ 8,818 $ 8,280 $ 8,925 $ 10,448 $ 7,204 Net interest income plus adjusted non-interest income $ 58,291 $ 54,311 $ 55,401 $ 54,630 $ 46,671 Non-interest expense to net interest income plus non-interest income 64.86 % 54.80 % 70.12 % 66.45 % (886.70 )% Efficiency ratio 63.02 % 52.59 % 63.77 % 63.45 % 72.69 % Average assets 5,163,166 5,205,017 5,196,259 5,152,915 4,892,712 Core non-interest expense to average assets 2.83 % 2.18 % 2.73 % 2.71 % 2.75 % Net income (loss) allocable to common stockholders $ 16,986 $ 19,851 $ 11,716 $ 14,068 $ (28,299 ) Less: net gain on acquisition — 831 60 1,240 — Less: net gain (loss) on securities transactions (2 ) 206 (27 ) 43 (50,618 ) Add: merger expenses — 618 2,287 1,556 297 Add: BOLI tax expense — — 1,730 — — Add: amortization of intangible assets 1,071 1,148 1,254 935 775 Less: tax effect of intangible assets amortization 225 153 737 254 10,855 Core net income (loss) allocable to common stockholders $ 17,834 $ 20,427 $ 16,217 $ 15,022 $ 12,536 Add: income tax provision 3,399 3,986 4,582 3,693 (11,357 ) Add: provision (reversal) of credit losses 98 1,183 265 1,000 711 Add: tax effect of pre-tax adjustments 225 153 737 254 10,855 Core pre-tax, pre-provision income $ 21,556 $ 25,749 $ 21,801 $ 19,969 $ 12,745 Total average assets $ 5,163,166 $ 5,205,017 $ 5,196,259 $ 5,152,915 $ 4,892,712 Total average stockholders' equity $ 533,227 $ 485,468 $ 455,322 $ 460,244 $ 423,207 Weighted average diluted common shares 16,262,965 15,451,545 15,377,980 15,569,225 15,417,200 Diluted earnings (loss) per share $ 1.04 $ 1.28 $ 0.76 $ 0.90 $ (1.84 ) Core earnings per diluted share $ 1.10 $ 1.32 $ 1.05 $ 0.96 $ 0.81 Core pre-tax pre-provision earnings per diluted share $ 1.33 $ 1.67 $ 1.31 $ 1.28 $ 0.83 Return on average assets (ROAA) annualized 1.31 % 1.52 % 0.91 % 1.10 % (2.29 )% Core return on average assets 1.37 % 1.56 % 1.25 % 1.17 % 1.01 % Return on average equity 12.67 % 16.27 % 10.35 % 12.29 % (26.53 )% Core return on average equity 13.29 % 16.73 % 14.25 % 13.11 % 11.21 %

Equity Bancshares, Inc. Fourth Quarter Results Include Net Interest Margin Expansion and Close of Common Equity Capital Raise

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