UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2026
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number 001-37624
EQUITY BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
Kansas
72-1532188
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
7701 East Kellogg Drive, Suite 300
Wichita, KS
67207
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: 316.612.6000
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Class A, Common Stock, par value $0.01 per share
Trading Symbol
EQBK
Name of each exchange on which registered
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No
As of April 30, 2026, the registrant had 20,640,778 shares of Class A common stock, $0.01 par value per share, outstanding.
TABLE OF CONTENTS
Part I
Financial Information
5
Item 1.
Financial Statements
Consolidated Balance Sheets
Consolidated Statements of Income
6
Consolidated Statements of Comprehensive Income
7
Consolidated Statements of Stockholders’ Equity
8
Consolidated Statements of Cash Flows
9
Condensed Notes to Interim Consolidated Financial Statements
11
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
50
Overview
52
Critical Accounting Policies
Results of Operations
53
Financial Condition
58
Liquidity and Capital Resources
67
Non-GAAP Financial Measures
69
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
74
Item 4.
Controls and Procedures
76
Part II
Other Information
77
Legal Proceedings
Item 1A.
Risk Factors
Unregistered Sales of Equity Securities and Use of Proceeds
Defaults Upon Senior Securities
Mine Safety Disclosures
Item 5.
Item 6.
Exhibits
Important Notice about Information in this Quarterly Report
Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to “we,” “our,” “us,” “the Company” and “Equity” refer to Equity Bancshares, Inc. and its consolidated subsidiaries, including Equity Bank, which we sometimes refer to as “Equity Bank,” “the Bank” or “our Bank.”
The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and as of the dates specified herein.
2
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution 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 we believe 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. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements described under the heading “Item 1A - Risk Factors” in our Annual Report on Form 10-K, as amended, filed with the Securities and Exchange Commission (“SEC”) on March 6, 2026, and in Item 1A – Risk Factors of this Quarterly Report.
There are or will be important factors that could cause our actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following:
3
The foregoing factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this Quarterly Report. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. 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 we do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. 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, we cannot assess the impact of each factor on our 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 Quarterly Report on Form 10-Q are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or verbal forward-looking statements that we or persons acting on our behalf may issue.
4
PART I
Item 1: Financial Statements
CONSOLIDATED BALANCE SHEETS
March 31, 2026, and December 31, 2025
(Dollar amounts in thousands)
(Unaudited)March 31,
December 31,
2026
2025
ASSETS
Cash and due from banks
$
563,766
607,562
Federal funds sold
399
255
Cash and cash equivalents
564,165
607,817
Interest-bearing deposit in other banks
932
575
Available-for-sale securities
1,125,162
1,030,568
Held-to-maturity securities, fair value of $5,346 and $5,409
5,254
5,248
Loans held for sale
7,631
1,392
Loans, net of allowance for credit losses of $64,245 and $52,756
5,364,030
4,145,424
Other real estate owned, net
5,026
5,388
Premises and equipment, net
140,648
136,720
Bank-owned life insurance
149,699
148,301
Federal Reserve Bank and Federal Home Loan Bank stock
38,806
34,053
Interest receivable
39,966
33,322
Goodwill
104,958
82,101
Core deposit intangibles, net
30,536
21,634
Other
90,557
120,629
Total assets
7,667,370
6,373,172
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Demand
1,274,533
1,148,409
Total non-interest-bearing deposits
Demand, savings and money market
3,504,698
3,004,987
Time
1,521,679
984,868
Total interest-bearing deposits
5,026,377
3,989,855
Total deposits
6,300,910
5,138,264
Federal funds purchased and retail repurchase agreements
39,009
39,864
Federal Home Loan Bank advances
347,660
300,000
Subordinated debt
98,263
98,145
Contractual obligations
9,678
10,208
Interest payable and other liabilities
54,240
54,637
Total liabilities
6,849,760
5,641,118
Commitments and contingent liabilities, see Notes 12 and 13
Stockholders’ equity, see Note 8
Common stock
273
249
Additional paid-in capital
766,016
664,906
Retained earnings
218,534
205,328
Accumulated other comprehensive income (loss)
930
7,032
Treasury stock
(168,143
)
(145,461
Total stockholders’ equity
817,610
732,054
Total liabilities and stockholders’ equity
See accompanying condensed notes to interim consolidated financial statements.
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months Ended March 31, 2026, and 2025
(Dollar amounts in thousands, except per share data)
(Unaudited)Three Months EndedMarch 31,
Interest and dividend income
Loans, including fees
91,462
62,997
Securities, taxable
13,659
9,114
Securities, nontaxable
222
377
Federal funds sold and other
2,681
2,196
Total interest and dividend income
108,024
74,684
Interest expense
30,478
19,377
192
248
1,886
2,916
Bank stock loan
—
1,800
1,851
Total interest expense
34,360
24,392
Net interest income
73,664
50,292
Provision (reversal) for credit losses
5,955
2,722
Net interest income after provision (reversal) for credit losses
67,709
47,570
Non-interest income
Service charges and fees
2,493
2,064
Debit card income
3,117
2,504
Mortgage banking
348
106
Increase in value of bank-owned life insurance
1,398
3,593
Net gain (loss) from securities transactions
(108
12
2,239
2,051
Total non-interest income
9,487
10,330
Non-interest expense
Salaries and employee benefits
26,255
19,954
Net occupancy and equipment
4,789
3,675
Data processing
5,086
Professional fees
1,768
1,527
Advertising and business development
1,666
1,344
Telecommunications
690
587
FDIC insurance
765
630
Courier and postage
645
799
Free nationwide ATM cost
566
513
Amortization of core deposit intangibles
1,928
1,045
Loan expense
498
129
Other real estate owned and repossessed assets, net
91
101
Merger expenses
5,725
66
4,195
3,594
Total non-interest expense
54,969
39,050
Income (loss) before income tax
22,227
18,850
Provision (benefit) for income taxes
5,261
3,809
Net income (loss) and net income (loss) allocable to common stockholders
16,966
15,041
Basic earnings (loss) per share
0.81
0.86
Diluted earnings (loss) per share
0.80
0.85
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during the period on available-for-sale securities
(8,091
14,082
Reclassification for net (gains) losses included in net income
(13
Unrealized holding gains (losses) arising during the period on cash flow hedges
(31
(450
Total other comprehensive income (loss)
(8,122
13,619
Tax effect
2,020
(3,403
Other comprehensive income (loss), net of tax
(6,102
10,216
Comprehensive income (loss)
10,864
25,257
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
(Dollar amounts in thousands, except share and per share data)
Common Stock
Additional
AccumulatedOther
Total
SharesOutstanding
Amount
Paid-InCapital
RetainedEarnings
ComprehensiveIncome (Loss)
TreasuryStock
Stockholders’Equity
Balance at January 1, 2025
17,427,626
230
584,424
194,920
(55,181
(131,475
592,918
Other comprehensive income (loss), net of tax effects
Cash dividends - common stock, $0.15 per share
(2,629
Dividend equivalents- restricted stock units and restricted stock awards, $0.15 per share
(50
Stock-based compensation
1,422
Common stock issued upon exercise of stock options
1,000
33
Common stock issued under stock-based incentive plan
88,215
1
(1
Common stock issued under employee stock purchase plan
13,921
446
Common stock issued with private placement, net of offering costs
(73
Treasury stock purchase
Balance at March 31, 2025
17,530,762
231
586,251
207,282
(44,965
617,324
Balance at January 1, 2026
18,953,785
Cash dividends - common stock, $0.18 per share
(3,740
Dividend equivalents- restricted stock units and restricted stock awards, $0.18 per share
(45
1,540
100,928
15,602
524
Common stock issued in connection with the acquisition of Frontier Holdings LLC
2,219,979
23
99,047
25
99,095
Treasury stock purchases
(514,473
(22,682
Balance at March 31, 2026
20,775,821
CONSOLIDATED STATEMENTS OF CASH FLOWS
Cash flows from operating activities
Adjustments to reconcile net income to net cash from operating activities:
Depreciation
1,574
1,432
Amortization of operating lease right-of-use asset
339
127
Amortization of cloud computing implementation costs
18
21
Net amortization (accretion) of purchase valuation adjustments
(3,350
(577
Amortization (accretion) of premiums and discounts on securities
(2,996
(443
Amortization of intangible assets
2,003
1,103
Deferred income taxes
224
Federal Home Loan Bank stock dividends
(256
(337
Loss (gain) on sales and valuation adjustments on other real estate owned
(34
Net loss (gain) on sales and settlements of securities
Change in unrealized (gains) losses on equity securities
108
Loss (gain) on disposal of premises and equipment
(430
(150
Loss (gain) on sales and valuation adjustments on foreclosed assets
(103
(11
Loss (gain) on sales of loans
(302
(86
Originations of loans held for sale
(19,377
(4,131
Proceeds from the sale of loans held for sale
14,975
4,393
Increase in the value of bank-owned life insurance
(1,398
(3,593
Change in fair value of derivatives recognized in earnings
47
196
Payments on operating lease payable
(460
(159
Net change in:
4,263
2,122
Other assets
10,055
3,683
(16,047
(1,273
Net cash provided by operating activities
15,329
21,680
Cash flows (to) from investing activities
Purchases of available-for-sale securities
(213,955
(9,834
Proceeds from sales, calls, pay-downs and maturities of available-for-sale securities
196,960
78,346
Proceeds from calls, pay-downs and maturities of held-to-maturity securities
10
Net change in interest-bearing time deposits
(257
Net change in loans
56,372
(68,393
Purchase of government guaranteed loans
(61,987
Purchase of premises and equipment
(3,796
(1,464
Proceeds from sale of premises and equipment
1,403
Proceeds from sale of foreclosed assets
619
4,758
Net redemptions (purchases) of Federal Home Loan Bank and Federal Reserve Bank stock
2,021
(3,748
Net redemptions (purchases) of correspondent and miscellaneous other stock
(676
(537
Proceeds from sale of other real estate owned
380
456
Proceeds from investments in tax credit structures and resulting contractual obligations
851
Proceeds from bank owned life insurance death benefits
4,308
Cash acquired in purchase of Frontier Holdings, LLC
12,818
Net cash (used in) provided by investing activities
52,750
(57,817
Cash flows (to) from financing activities
Net increase (decrease) in deposits
30,328
30,556
Net change in federal funds purchased and retail repurchase agreements
(855
(474
Net borrowings (repayments) on Federal Home Loan Bank line of credit
50,250
58,661
Proceeds from Federal Home Loan Bank term advances
159,454
Principal repayments on Federal Home Loan Bank term advances
(302,204
(300,000
Proceeds from Federal Reserve Bank borrowings
Principal payments on Federal Reserve Bank borrowings
(1,000
Proceeds from issuance of common stock, net
Proceeds from the exercise of employee stock options
Proceeds from employee stock purchase plan
Principal payments on other borrowings
(22,486
Purchase of treasury stock
Net change in contractual obligations
(530
(2,669
Dividends paid on common stock
(3,530
(2,708
Net cash (used in) provided by financing activities
(111,731
83,772
Net change in cash and cash equivalents
(43,652
47,635
Cash and cash equivalents, beginning of period
383,747
Ending cash and cash equivalents
431,382
Supplemental cash flow information:
Interest paid
36,858
21,865
Income taxes paid, net of refunds
(229
Supplemental noncash disclosures:
Other real estate owned acquired in settlement of loans
27
113
Other repossessed assets acquired in settlement of loans
78
246
Total fair value of assets acquired in purchase of Frontier Holdings, LLC, net of cash
1,403,185
Total fair value of liabilities assumed in purchase of Frontier Holdings, LLC, net of cash
1,307,265
CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2026
NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The interim consolidated financial statements include the accounts of Equity Bancshares, Inc., its wholly-owned subsidiaries, Equity Bank (“Equity Bank”), EBAC, LLC (“EBAC”) and Equity Risk Management, Inc. (“ERMI”). ERMI provides property and casualty insurance coverage to Equity Bancshares and Equity Bank and reinsurance to other third party insurance captives for which insurance may not be currently available or economically feasible in today's insurance marketplace. The wholly-owned subsidiaries of Equity Bank are comprised of SA Holdings, Inc. (“SA Holdings”), SA Property LLC (“SA Property”), and EQBK Investments, LLC. (“EQBK Investments”). SA Holdings and SA Property were established for the purpose of holding and selling other real estate owned. EQBK Investments was established for the purpose to hold Equity Bank's investment in a real estate investment trust. These entities are collectively referred to as the “Company”. All significant intercompany accounts and transactions have been eliminated in consolidation.
The accompanying unaudited condensed interim consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial information. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are of a normal recurring nature. These financial statements and the accompanying notes should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2025, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 6, 2026. Operating results for the three months ended March 31, 2026, are not necessarily indicative of the results that may be expected for the year ending December 31, 2026, or any other period.
Reclassifications
Some items in prior financial statements were reclassified to conform to the current presentation. Management determined the items reclassified are immaterial to the consolidated financial statements taken as a whole and did not result in a change in equity or net income for the periods reported.
Recent Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures. The amendments in ASU 2024-03, update require disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments will require the Company to disclose employee compensation, depreciation, and intangible amortization included in each relevant expense caption on the face of the income statement. In addition, certain amounts already required to be disclosed under other current GAAP will be disclosed in this disaggregation and a qualitative description of the amounts remaining in each relevant expense caption. The amendments in this update are effective for annual periods beginning after December 15, 2026, and early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The amendments in this update should be applied on a prospective basis; however, retrospective application is permitted. The Company's financial condition, results of operations and cash flows will not be impacted by this guidance; however, this guidance will impact the Company's financial statement disclosures.
In January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures - Clarifying the Effective Date. The amendments in ASU 2025-01, clarify that all public entities should initially adopt the disclosure requirements of ASU 2024-03 in the first annual reporting period beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The transition guidance included in ASU 2024-03 and related impact is unchanged by this guidance.
In November 2025, the FASB issued ASU 2025-08, Financial Instruments — Credit Losses (Topic 326): Purchased Loans. The amendments in ASU 2025-08, amends the guidance in ASC 326 to expand and clarify the accounting for acquired loans, including “purchased seasoned loans,” with the objective of addressing concerns about complexity and potential double counting of expected credit losses in acquisition accounting. ASU 2025-08 requires entities to apply the amendments prospectively to loans acquired on or after the initial application date and does not require retrospective restatement of prior periods. The amendments in this update are effective for annual periods beginning after December 15, 2026, and early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company early adopted the provisions of ASU 2025-08 in connection with its acquisition of Frontier Holdings LLC, which was completed on January 1, 2026. The Company applied the guidance prospectively to loans acquired in the transaction and will apply the updated guidance to any subsequent acquisitions occurring on or after initial adoption. Early adoption of the ASU 2025-08 affected the timing and measurement of expected credit losses for acquired performing loans. The impact from adoption is included in the accompanying footnotes.
In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815), Hedge Accounting Improvements. The amendments in ASU 2025-09, will cause the guidance in ASC 815 to more closely align hedge accounting with the economics of an entities risk management activities by: (1) allowing aggregating in a group of individual forecasted transaction in a cash flow hedge that have similar risk exposure rather than shared risk exposure; (2) allows the application of cash flow hedge accounting on variable rate debt instruments with contractual terms that permit the borrower to change the interest rate index and interest rate tenor; (3) permits hedge accounting for forecasted purchases and sales of non-financial assets, that meet specific criteria, to apply hedge accounting to eligible components of forecasted sport-market transactions, forward-market transactions and subcomponents of an agreements pricing formula; (4) eliminates the requirement to apply the net written options test to a compound derivative that comprises a swap and a written option designated in a cash flow or fair value hedge of interest rate risk; and (5) eliminates the recognition and presentation mismatch related to a dual hedge strategy, when a foreign currency denominated debt instrument is both designated as the hedge in a net investment hedge and as the hedged item in a fair value hedge of interest rate risk. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods. Early adoption is permitted on any date on or after the issuance of this Update. Entities should apply the amendments in this update on a prospective basis for all hedging relationships. The company is currently evaluating the impact of adoption of ASU 2025-09, but does not expect it to have a significant impact on the Company's financial condition, results of operations or cash flows.
NOTE 2 – INVESTMENTS
The amortized cost and fair value of available-for-sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) are listed below.
AmortizedCost
GrossUnrealizedGains
GrossUnrealizedLosses
Allowancefor CreditLosses
FairValue
U.S. Government-sponsored entities
25,676
203
25,879
U.S. Treasury securities
38,665
38,731
Mortgage-backed securities
Government-sponsored residential mortgage-backed securities
862,036
5,282
(4,250
863,068
Private label residential mortgage-backed securities
4,298
(95
4,203
Corporate
93,044
641
(1,325
92,360
Small Business Administration loan pools
77,400
126
(191
77,335
State and political subdivisions
24,036
(477
23,586
1,125,155
6,345
(6,338
December 31, 2025
25,960
338
26,298
35,134
116
35,250
763,827
9,598
(1,280
772,145
4,441
(115
4,326
92,142
734
(1,078
91,798
80,199
130
(124
80,205
20,767
70
(291
20,546
1,022,470
10,986
(2,888
The amortized cost and fair value of held-to-maturity securities and the related gross unrecognized gains and losses are listed in the following tables.
GrossUnrecognizedGains
GrossUnrecognizedLosses
Held-to-maturity securities
3,974
88
(9
4,053
1,280
16
(3
1,293
104
(12
5,346
3,967
131
4,098
1,281
30
1,311
161
5,409
The fair value and amortized cost of debt securities at March 31, 2026, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.
Available-for-Sale
Held-to-Maturity
Within one year
58,190
58,262
One to five years
32,790
33,020
Five to ten years
82,171
81,251
170
167
After ten years
8,270
8,023
1,110
1,126
866,334
867,271
Total debt securities
13
The following table shows the carrying value and fair value of securities pledged as collateral to secure public fund deposits; borrowings from the Federal Home Loan Bank and Federal Reserve Bank; and retail repurchase obligations at March 31, 2026, and December 31, 2025.
Book Value
Fair Value
Public fund deposits
728,693
730,822
785,200
793,014
Federal Reserve Bank borrowings
501
508
2,002
2,042
Retail repurchase agreements
39,385
39,826
40,898
41,481
Total securities pledged
768,579
771,156
828,100
836,537
The following tables show gross unrealized or unrecognized losses and fair value, aggregated by investment category, and length of time that individual securities have been in a continuous loss position at March 31, 2026, and December 31, 2025.
Less Than 12 Months
12 Months or More
UnrealizedLoss
400,818
(3,399
27,554
(851
428,372
20,064
(128
24,037
(1,197
44,101
46,696
(133
7,443
(58
54,139
10,201
(266
6,995
(211
17,196
477,779
(3,926
70,232
(2,412
548,011
129,917
(519
28,089
(761
158,006
11,837
24,225
(1,005
36,062
23,308
(52
8,629
(72
31,937
2,807
(109
9,460
(182
12,267
167,869
(753
74,729
(2,135
242,598
As of March 31, 2026, the Company held 142 available-for-sale securities in an unrealized loss position and two held-to-maturity securities in an unrecognized loss position.
Unrealized losses on available-for-sale securities and unrecognized losses on held-to-maturity securities have not been recognized into income because the security issuers are of high credit quality, management does not intend to sell and it is more likely than not that the Company will not be required to sell the securities prior to their anticipated recovery. The decline in fair value is largely due to changes in interest rates and the fair value is expected to recover as the securities approach maturity.
The Company's available-for-sale and held-to-maturity investments that carry some form of credit risk are private label residential mortgage-backed, corporate and state and political subdivisions securities.
14
The Company's private label residential mortgage-backed exposure consists of one security held by the Company and is senior in the capital structure, carries substantial credit enhancement and is 20% risk weighted by the Simplified Supervisory Formula Approach (“SSFA”). At March 31, 2026, the Company does not anticipate any credit losses in the private label residential mortgage-backed portfolio.
The Company's corporate debt exposure consists of 39 separate positions in U.S. financial institutions, all of which the Company has determined to be investment grade. Substantially all of the positions are subordinated debt issued by bank holding companies. The Company periodically reviews financial data of the issuers to ensure their continued investment grade status. At March 31, 2026, the Company does not anticipate any credit losses in the corporate debt securities portfolio.
The Company's portfolio of state and political subdivisions securities is comprised of 71 positions of which 58% of the positions are rated “A” or better by a Nationally Recognized Statistical Ratings Organization (“NRSRO”), and 48% of the overall portfolio is made up of general obligation bonds. The Company periodically reviews financial data of the entities and regularly monitors credit ratings changes of the entities. At March 31, 2026, the Company does not anticipate any credit losses in the state and political subdivisions securities portfolio.
The proceeds from sales and the associated gains and losses on available-for-sale securities reclassified from other comprehensive income to income are listed below.
Three Months Ended March 31,
Proceeds
77,420
640
Gross gain
Gross losses
Income tax expense/(benefit)
The Company also invests in several other investments, including investments in stocks and partnerships, which are included in other assets. The following table shows the various investment balances and method of accounting at March 31, 2026, and December 31, 2025.
Investments in stocks
Accounted for at fair value through net income
1,404
1,182
Accounted for at amortized cost assessed for impairment
3,053
2,362
Total investments in stocks
4,457
3,544
Investments in partnerships
Accounted for under the equity method
3,037
Accounted for under the hypothetical liquidation book value
1,240
1,306
Accounted for under proportional amortization
25,001
26,299
Total investments in partnerships
29,278
30,642
Total other investments
33,735
34,186
The unrealized gain/(loss) for other investments accounted for at fair value that were still held at the reporting period were $222 and $159 at March 31, 2026, and December 31, 2025.
15
The following table discloses the financial statement impact of tax credit investments for the three month period ended March 31, 2026, and 2025.
Income Tax Credits Recognized During Period (a)
Other Income Tax Benefits (a)
Total Tax Benefits
Investment Amortization Included in Income Tax Expense
Investments and tax credit structures:
Included in proportional amortization
(138
(1,335
1,199
Not included in proportional amortization
44
March 31, 2025
(619
(258
(877
761
62
(a) Reported in income tax expense on statements of income and reported in net change in other assets on statements of cash flows.
NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES
Types of loans and normal collateral securing those loans are listed below.
Commercial real estate: Commercial real estate loans include all loans secured by non-farm, nonresidential properties and by multifamily residential properties, as well as 1-4 family investment-purpose real estate loans.
Commercial and industrial: Commercial and industrial loans include loans used to purchase fixed assets, provide working capital or meet other financing needs of the business. Loans are normally secured by the assets being purchased or already owned by the borrower, inventory or accounts receivable. These may include SBA and other guaranteed or partially guaranteed types of loans.
Residential real estate: Residential real estate loans include loans secured by primary or secondary personal residences.
Agricultural real estate: Agricultural real estate loans are loans typically secured by farmland.
Agricultural: Agricultural loans are primarily operating lines subject to annual farming revenues including productivity/yield of the agricultural commodities produced. These loans may be secured by growing crops, stored crops, livestock, equipment, and miscellaneous receivables.
Consumer: Consumer loans may include installment loans, unsecured and secured personal lines of credit, overdraft protection and letters of credit. These loans are generally secured by consumer assets but may be unsecured.
The following table reconciles the outstanding balance of loans at March 31, 2026, and December 31, 2025.
Net loan balance
5,459,696
4,216,011
Loan origination fees and expenses
(2,165
(2,964
Merger fair value adjustments
(30,931
(16,396
Hedge fair market value adjustments
(1,082
(1,129
Purchased premium and discounts
2,757
2,658
5,428,275
4,198,180
The following table lists categories of loans at March 31, 2026, and December 31, 2025.
Commercial real estate
2,958,263
2,226,348
Commercial and industrial
967,049
816,885
Residential real estate
720,441
582,145
Agricultural real estate
431,308
278,927
Agricultural
249,053
188,475
Consumer
102,161
105,400
Total loans
Allowance for credit losses
(64,245
(52,756
Net loans
From time to time, the Company has purchased pools of residential real estate loans originated by other financial institutions to hold for investment with the intent to diversify the residential real estate portfolio. During the three months ended March 31, 2026 and 2025 the Company did not purchase any pools of residential loans. As of March 31, 2026, and December 31, 2025, residential real estate loans include $269,832 and $252,884 of purchased residential real estate loans.
The Company occasionally purchases the government guaranteed portion of loans originated by other financial institutions to hold for investment. During the three months ended March 31, 2026, the Company did not purchase any loans guaranteed by governmental agencies. During the three months ended March 31, 2025, the Company purchased $61,987 in loans guaranteed by governmental agencies.
The unamortized purchase accounting discounts related to non-purchase credit deteriorated loans included in the loan totals above are $22,847 with related loans of $1,563,591 at March 31, 2026, and $12,853 with related loans of $627,644 at December 31, 2025.
Overdraft deposit accounts are reclassified and included in consumer loans above. These accounts totaled $940 at March 31, 2026, and $878 at December 31, 2025.
The following tables present the activity in the allowance for credit losses by class for the three month period ended March 31, 2026, and 2025.
CommercialReal Estate
Commercialand Industrial
ResidentialRealEstate
AgriculturalRealEstate
Allowance for credit losses:
Beginning balance
20,037
17,830
8,068
4,669
337
1,815
52,756
Provision for credit losses
923
4,467
(613
1,326
(261
Initial allowance on purchase credit deteriorated ("PCD") loans
855
1,962
160
440
202
3,620
Initial allowance on purchased seasoned loans
1,108
718
114
1,254
87
3,293
Loans charged-off
(1,700
(29
(36
(241
(2,081
Recoveries
31
573
81
702
Total ending allowance balance
22,882
23,850
7,701
7,665
291
1,856
64,245
14,948
14,005
8,553
3,504
439
1,818
43,267
754
(418
278
1,606
(67
569
(22
(6
(17
(638
(1,139
442
404
54
64
974
16,122
13,548
8,827
5,158
356
1,813
45,824
17
The following tables present the amortized cost in loans and the balance in the allowance for credit losses by portfolio and class based on the method to determine allowance for credit loss as of March 31, 2026, and December 31, 2025.
March 31,2026
CommercialandIndustrial
Individually evaluated for credit losses
2,903
4,944
844
410
194
9,373
Collectively evaluated for credit losses
19,979
18,906
6,857
7,255
213
1,662
54,872
Loan Balance:
23,986
33,102
3,623
3,928
3,457
819
68,915
2,934,277
933,947
716,818
427,380
245,596
101,342
5,359,360
2,599
2,341
910
342
186
171
6,549
17,438
15,489
7,158
4,327
151
1,644
46,207
18,171
21,905
4,664
2,886
770
52,324
2,208,177
794,980
577,481
276,041
184,547
104,630
4,145,856
The following tables present information related to non-accrual loans at March 31, 2026, and December 31, 2025.
UnpaidPrincipalBalance
RecordedInvestment
Allowance forCredit LossesAllocated
With no related allowance recorded:
4,346
2,518
2,410
2,387
2,090
3,434
3,089
20
Subtotal
12,873
11,935
With an allowance recorded:
12,959
11,634
2,054
29,896
22,736
4,120
3,708
3,467
832
2,235
1,663
389
281
268
779
737
180
49,858
40,505
7,637
62,731
52,440
3,795
3,734
2,146
707
610
552
297
1,624
1,291
8,486
6,284
7,461
6,758
1,639
24,794
20,820
2,303
3,975
3,704
875
1,694
1,167
262
897
862
124
719
681
162
39,540
33,992
5,365
48,026
40,276
The tables below present average recorded investment and interest income related to non-accrual loans for the three months ended March 31, 2026, and 2025. Interest income recognized in the following table was substantially recognized on a cash basis. The recorded investment in loans excludes accrued interest receivable due to immateriality.
As of and for the Three Months Ended
Average Recorded Investment
Interest Income Recognized
4,040
3,052
1,559
95
276
1,975
32
2,190
9,110
96
5,027
9,196
4,813
21,778
8,014
3,585
4,915
1,415
2,351
565
1,231
709
775
37,248
22,099
46,358
100
27,126
37
19
The following table presents the amount of non-accrual interest income written off for the three months ended March 31, 2026, and 2025.
Three Months Ended
49
175
250
38
The following tables present the aging of the recorded investment in past due loans as of March 31, 2026, and December 31, 2025, by portfolio and class of loans.
30 - 59DaysPast Due
60 - 89DaysPast Due
GreaterThan90 DaysPastDue Still OnAccrual
Non-accrual
Loans NotPast Due
15,245
7,369
667
15,980
2,919,002
8,617
4,592
1,955
25,146
926,739
3,558
219
155
713,042
1,161
506
3,753
425,812
1,544
2,643
3,357
241,486
324
101,004
30,449
15,425
2,876
5,327,085
4,411
3,121
10,492
2,208,324
3,830
1,655
1,146
21,527
788,727
3,825
842
164
4,256
573,058
1,194
480
276,086
715
656
1,300
2,153
183,651
353
104,271
14,328
6,849
2,610
4,134,117
Credit Quality Indicators
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. Consumer loans are considered pass credits unless downgraded due to payment status or reviewed as part of a larger credit relationship. The Company uses the following definitions for risk ratings.
Pass: Loans classified as pass include all loans that do not fall under one of the three following categories.
Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.
Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that
jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable.
Based on the analysis performed at March 31, 2026, the risk category of loans by type and year of origination is as follows.
2024
2023
2022
Prior
Revolving LoansAmortized Cost
Revolving LoansConverted to Term
Risk rating
Pass
113,543
570,533
337,946
157,900
332,386
478,864
937,356
1,476
2,930,004
Special mention
666
849
Substandard
6,194
3,305
1,761
3,280
7,802
5,068
27,410
Doubtful
Total commercial real estate
576,727
341,365
159,661
335,735
486,666
943,090
29,270
199,117
125,784
45,346
46,821
50,703
417,535
780
915,356
89
16,233
146
16,800
2,046
13,825
7,497
1,554
2,435
7,536
34,893
Total commercial and industrial
201,163
139,698
69,076
48,521
53,340
425,201
27,679
74,260
22,300
43,002
58,581
372,054
118,109
359
716,344
271
825
318
2,006
520
45
3,826
Total residential real estate
74,276
22,396
43,827
58,899
374,331
118,629
18,823
98,744
50,114
23,764
26,655
106,360
100,136
263
424,859
134
2,393
2,243
153
1,241
285
6,315
Total agricultural real estate
18,831
52,507
26,007
26,808
107,727
100,421
9,857
32,529
19,903
4,722
2,324
6,413
170,582
137
246,467
592
651
29
568
2,524
Total agricultural
33,121
19,957
5,373
2,353
7,105
171,150
28,456
14,929
8,762
9,676
6,111
6,739
26,751
101,424
103
188
159
Total consumer
15,020
8,865
9,864
6,307
6,898
227,628
990,112
564,809
284,410
472,878
1,021,133
1,770,469
3,015
5,334,454
215
661
796
18,116
8,939
19,776
13,165
5,530
14,273
13,977
75,705
227,636
999,051
584,788
313,808
478,623
1,036,067
1,785,242
3,060
Based on the analysis performed at December 31, 2025, the risk category of loans by type and year of origination is as follows.
2021
429,259
319,227
162,815
256,817
162,737
258,510
614,449
999
2,204,813
115
73
4,739
2,329
1,376
3,839
1,148
3,211
4,038
20,680
433,998
321,671
164,191
260,729
163,885
261,721
619,154
192,904
120,288
43,779
48,264
33,804
25,293
304,608
769,789
93
16,865
147
336
17,580
319
16,822
7,547
1,144
1,832
1,637
29,516
193,223
137,203
68,191
49,555
34,029
27,461
306,374
49,089
17,591
30,673
36,518
242,578
121,963
78,442
379
577,233
277
1,265
553
217
2,213
221
4,635
49,106
17,695
31,938
37,071
242,795
124,453
78,663
424
65,295
43,928
19,536
16,115
10,270
49,537
70,113
270
275,064
407
21,682
16,193
10,677
50,769
27,452
20,798
4,886
1,649
1,506
2,618
127,847
186,980
56
143
663
366
1,462
27,508
20,885
5,030
1,779
1,523
3,313
128,213
37,830
8,889
9,933
7,213
3,326
3,485
34,044
104,720
61
216
223
119
680
37,847
8,950
10,149
7,436
3,445
3,529
801,829
530,721
271,622
366,576
454,221
461,406
1,229,503
2,721
4,118,599
208
16,866
220
774
18,874
5,148
19,403
12,693
5,967
2,123
9,066
6,262
60,707
806,977
550,332
301,181
372,763
456,354
471,246
1,236,561
2,766
22
The following table discloses the charge-off and recovery activity by loan type and year of origination for the three month period ending March 31, 2026.
Gross charge-offs
(40
(14
Gross recoveries
Net charge-offs
(23
(41
(916
(598
(102
(81
(2
530
42
(101
449
40
(1,127
(21
(5
(28
(4
(24
(48
(64
(26
(10
(7
(160
(952
(665
(152
(187
(51
599
59
(47
(948
(659
(121
412
(1,379
The following table discloses the charge-off and recovery activity by loan type and year of origination for the three month period ending March 31, 2025.
199
243
185
420
(25
(37
(20
(310
86
279
(39
(8
48
(16
(70
(125
(225
(60
(123
(205
(53
(61
(574
(157
(285
(84
(404
(44
611
36
(90
(151
(63
207
(165
Modifications to Debtors Experiencing Financial Difficulty
The following table presents the amortized cost basis of loans at March 31, 2026, and 2025, that were both experiencing financial difficulty and modified during the three months ended March 31, 2026, and 2025, by class and by type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below.
Payment Delay
Term Extension
Combination Payment Delay and Term Extension
Total Modifications
Total Class of Financing Receivable
0.00
%
0.01
172
287
0.04
272
387
At March 31, 2026, and 2025, there were $74 and $30 in commitments to lend additional amounts on these loans.
24
At modification date, the Company considers loans modified to borrowers in financial distress as loans that do not share similar risk characteristics with collectively evaluated loans at modification date for the purposes of calculating the allowance for credit losses. These loans will be evaluated for credit losses based on either discounted cash flows or the fair value of collateral at modification date; however, subsequent to the modification date these loans will be evaluated for credit losses as part of the collectively evaluated pools after a period of ongoing performance under the terms of the modified loan.
The Company closely monitors the performance of loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified during the twelve months ended March 31, 2026, and 2025.
30 - 59 Days Past Due
60 - 89 Days Past Due
Greater Than 89 days Past Due
Total Past Due
643
3,584
3,662
595
4,227
4,900
The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty for the three months ended March 31, 2025. There were no modified loans to borrowers experiencing financial difficulty for the three months ended March 31, 2026.
Principal Forgiveness
Weighted Average Interest Rate Reduction
Weighted Average Term Extension in Years
0.49
0.25
Allowance for Credit Losses on Off-Balance-Sheet Credit Exposures
The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk from a contractual obligation to extend credit, unless that obligation is unconditionally cancelable by the Company. The allowance for credit losses on off-balance-sheet credit exposures is adjusted as a provision for credit loss expense recognized within other non-interest expense on the consolidated statements of income and included in other liabilities on the consolidated balance sheets. The estimated credit loss includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The estimate of expected credit loss is based on the historical loss rate for the class of loan the commitments would be classified as if funded.
The following table lists allowance for credit losses on off-balance-sheet credit exposures as of March 31, 2026, and December 31, 2025.
Allowance forCredit Losses
301
2,010
1,409
85
84
Total allowance for credit losses
2,501
1,753
NOTE 4 – DERIVATIVE FINANCIAL INSTRUMENTS
The Company is exposed to interest-rate risk primarily from the effect of interest rate changes on its interest-earning assets and its sources of funding these assets. The Company will periodically enter into interest rate swaps or interest rate caps/floors to manage certain interest rate risk exposure.
Interest Rate Swaps Designated as Fair Value Hedges
The Company periodically enters into interest rate swaps to hedge the fair value of certain commercial real estate loans. These transactions are designated as fair value hedges. In this type of transaction, the Company typically receives from the counterparty a variable-rate cash flow based on the one-month LIBOR or one-month SOFR plus a spread to the index and pays a fixed-rate cash flow equal to the customer loan rate. At March 31, 2026, the portfolio of interest rate swaps had a weighted average maturity of 6.12 years, a weighted average pay rate of 4.44% and a weighted average rate received of 6.91%. At December 31, 2025, the portfolio of interest rate swaps had a weighted average maturity of 6.27 years, a weighted average pay rate of 4.45% and a weighted average rate received of 7.10%.
Interest Rate Swaps Designated as Cash Flow Hedges
The Company has entered into cash flow hedges to hedge future cash flows related to subordinated debt and Federal Home Loan Bank advances interest expense and adjustable rate loans interest income. These agreements are designated as cash flow hedges and are marked to market through other comprehensive income.
The following table lists the cash flow hedges at March 31, 2026, and December 31, 2025.
Weighted AverageMaturity in Years
Weighted Average Pay Rate
Weighted Average Rate Received
Subordinated debt hedges
9.5
2.81
5.78
9.7
6.10
Variable rate FHLB advance hedges
0.2
3.59
3.71
Total cash flow hedges
0.9
3.53
3.88
Stand-Alone Derivatives
The Company periodically enters into interest rate swaps with our borrowers and simultaneously enters into swaps with a counterparty with offsetting terms for the purpose of providing our borrowers long-term fixed rate loans, in addition to stand alone interest-rate swaps designed to offset the economic impact of fixed rate loans. Neither swap is designated as a hedge, and both are marked to market through earnings. At March 31, 2026, this portfolio of interest rate swaps had a weighted average maturity of 5.92 years, weighted average pay rate of 6.74% and a weighted average rate received of 6.76%. At December 31, 2025, this portfolio of interest rate swaps had a weighted average maturity of 6.17 years, weighted average pay rate of 6.79% and weighted average rate received of 6.82%.
Reconciliation of Derivative Fair Values and Gains/(Losses)
The notional amount of a derivative contract is a factor in determining periodic interest payments or cash flows received or paid. The notional amount of derivatives serves as a level of involvement in various types of derivatives. The notional amount does not represent the Company’s overall exposure to credit or market risk, generally, the exposure is significantly smaller.
26
The following table shows the notional balances and fair values (including net accrued interest) of the derivatives outstanding by derivative type at March 31, 2026, and December 31, 2025.
NotionalAmount
DerivativeAssets
DerivativeLiabilities
Derivatives designated as hedging instruments:
Interest rate swaps
9,725
854
10,086
935
Derivatives designated as cash flow hedges:
7,500
1,845
107,500
1,881
Total derivatives designated as hedging relationships
17,225
2,699
117,586
2,816
Derivatives not designated as hedging instruments:
182,391
2,848
2,723
183,489
2,942
2,808
Total derivatives not designated as hedging instruments
199,616
5,547
301,075
5,758
Cash collateral
4,179
3,359
Netting adjustments
(3,898
(3,367
Net amount presented in Balance Sheet
3,004
2,391
2,800
The table below lists designated and qualifying hedged items in fair value hedges at March 31, 2026, and December 31, 2025.
Carrying Amount
Hedging Fair Value Adjustment
Fair Value Adjustments on Discontinued Hedges
Commercial real estate loans
13,911
(343
14,337
(354
The Company reports hedging derivative gains (losses) as adjustments to loan interest income and loan interest expense along with the related net interest settlements. The non-hedging derivative gains (losses) and related net interest settlements for economic derivatives are reported in other income. For the three month period ended March 31, 2026, and 2025, the Company recorded net gains (losses) on derivatives and hedging activities as shown in the table below.
Total net gain (loss) related to derivatives designated as hedging instruments
Total net gain (loss) related to derivatives designated as cash flow hedges
Total net gains (losses) related to hedging relationships
Economic hedges:
Total net gains (losses) related to derivatives not designated as hedging instruments
Net gains (losses) on derivatives and hedging activities
396
The following tables show the recorded net gains (losses) on derivatives and the related hedged items in fair value hedging relationships and the impact of those derivatives on the Company’s net interest income for the three month periods ended March 31, 2026, and 2025.
Gain/(Loss)on Derivatives
Gain/(Loss)on HedgedItems
Net Fair ValueHedgeGain/(Loss)
Effect ofDerivatives onNet InterestIncome
(18
(199
206
The following tables show the recorded net gains or (losses) on derivatives and the related hedged items in cash flow hedging relationships and the impact of those derivatives on the Company's net interest income for the three month periods ended March 31, 2026, and 2025.
Gain/(Loss)onDerivatives
Gain/(Loss)Recorded in Accumulated Other Comprehensive Income
FHLB advance hedges
Subordinated note hedges
(194
(137
68
(331
253
NOTE 5 – OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS
Changes in other real estate owned and other repossessed assets for the three months ended March 31, 2026 and 2025 were as follows.
28
Other Real Estate Owned
Other Repossessed Assets
Beginning of period
578
5,966
Transfers in
105
Net (loss) gain on sales
Proceeds from sales
(380
(999
5,038
140
5,178
Additions to valuation reserve
Capitalized cost
Recorded investment
5,166
4,773
4,811
9,584
34
(456
(4,758
(5,214
4,464
310
4,774
Expenses related to other real estate owned and other repossessed assets for the three months ended March 31, 2026 and 2025 were as follows.
Net loss (gain) on sales
(106
Gain on initial valuation of collateral
Provision for unrealized losses
Operating expenses, net of rental income
148
157
(66
82
The balance of other real estate owned includes $443 of foreclosed residential real estate properties recorded as a result of obtaining physical possession of the property at March 31, 2026, and $804 at December 31, 2025. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $1,933 at March 31, 2026, and $776 at December 31, 2025. At March 31, 2026 and December 31 ,2025, included in the other real estate owned balance is $2,141 related to closed bank locations transferred from premises and equipment.
NOTE 6 – LEASE OBLIGATIONS
Right-of-use asset and lease obligations by type of property for the periods ended March 31, 2026, and December 31, 2025, are listed below.
Right-of-UseAsset
Lease Liability
WeightedAverageLease Termin Years
WeightedAverageDiscountRate
Operating Leases
Land and building leases
6,215
6,145
8.7
3.39
Total operating leases
3,528
3,527
12.1
3.29
Operating lease costs for the three months ended March 31, 2026, and 2025, are listed below.
Operating lease cost
392
156
Short-term lease cost
Variable lease cost
Total operating lease cost
526
177
There were no sale and leaseback transactions, leverage leases, lease transactions with related parties or leases that had not yet commenced during the three month period ended March 31, 2026.
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total operating lease liability is listed below.
Lease Payments
Due in one year or less
1,261
Due after one year through two years
1,186
Due after two years through three years
1,044
Due after three years through four years
927
Due after four years through five years
766
Thereafter
1,961
Total undiscounted cash flows
7,145
Discount on cash flows
Total operating lease liability
NOTE 7 – BORROWINGS
Federal funds purchased and retail repurchase agreements as of March 31, 2026, and December 31, 2025, are listed below.
December 31,2025
Federal funds purchased
Securities sold under agreements to repurchase (retail repurchase agreements) consist of obligations of the Company to other parties. The obligations are secured by residential mortgage-backed securities held by the Company with a fair value of $39,826 and $41,481 at March 31, 2026, and December 31, 2025. The agreements are on a day-to-day basis and can be terminated on demand.
The following table presents the borrowing usage and interest rate information for federal funds purchased and retail repurchase agreements at March 31, 2026, and December 31, 2025.
Average daily balance during the period
44,412
41,479
Average interest rate during the period
1.45
1.77
Maximum month-end balance year-to-date
41,557
46,708
Weighted average interest rate at period-end
1.51
1.46
Federal Home Loan Bank advances include both draws against the Company’s line of credit and fixed rate term advances. Federal Home Loan Bank advances as of March 31, 2026, and December 31, 2025, are as follows.
Weighted Average Rate
Federal Home Loan Bank line of credit advances
250,250
3.83
200,000
3.89
Federal Home Loan Bank fixed-rate term advances
97,410
3.77
100,000
3.84
Total Federal Home Loan Bank advances
3.81
3.87
At March 31, 2026, and December 31, 2025, the Company had un-disbursed advance commitments (letters of credit) with the Federal Home Loan Bank of $59,742 and $64,635. These letters of credit were obtained in lieu of pledging securities to secure public fund deposits that are over the FDIC insurance limit.
The advances, Mortgage Partnership Finance credit enhancement obligations and letters of credit were collateralized by certain qualifying loans of $904,073 at March 31, 2026, and qualifying loans of $932,939 at December 31, 2025. Based on this collateral and the Company’s holdings of Federal Home Loan Bank stock, the Company was eligible to borrow an additional $494,792 and $567,399 at March 31, 2026, and December 31, 2025.
At March 31, 2026, and December 31, 2025, the Company had a borrowing capacity of $2,142,985 and $1,863,782, for which the Company has pledged loans with an outstanding balance of $2,622,634 at March 31, 2026 and $2,456,465 at December 31, 2025. The Company had no outstanding borrowings at March 31, 2026 or December 31, 2025.
The Company entered into an agreement with an unaffiliated financial institution and is secured by the Company’s stock in Equity Bank. The loan was renewed on February 10, 2023, with a new maturity date of February 10, 2024. With this renewal, the maximum borrowing amount remained at $25,000. Each note will bear interest at the greater of a variable interest rate equal to the prime rate published in the “Money Rates” section of The Wall Street Journal (or any generally recognized successor), floating daily, or a floor of 3.25%. Accrued interest and principal payments will be due quarterly with one final payment of unpaid principal and interest due at the end of the five-year term of each separate note. The Company is also required to pay an unused commitment fee in an amount equal to 20 basis points per annum on the unused portion of the maximum borrowing facility due on the maturity date of the renewal.
The loan has been renewed and amended annually on February 10, with the same terms as the previous renewal. The most recent renewal was February 10, 2026 with a maturity date of February 10, 2027.
There were no outstanding principal balances on the bank stock loan at March 31, 2026 or December 31, 2025.
The terms of the borrowing facility require the Company and Equity Bank to maintain minimum capital ratios and other covenants. In the event of default, the lender has the option to declare all outstanding balances immediately due. The Company believes it is in compliance with the terms of the borrowing facility and has not been otherwise notified of noncompliance.
Subordinated debt as of March 31, 2026, and December 31, 2025, are listed below.
Subordinated debentures
24,401
24,308
Subordinated notes
73,862
73,837
In conjunction with prior acquisitions, the Company assumed certain subordinated debentures owed to special purpose unconsolidated subsidiaries that are controlled by the Company. These subordinated debentures have the same terms as the trust preferred securities issued by the special purpose unconsolidated subsidiaries.
FCB Capital Trust II (“CTII”): The trust preferred securities issued by CTII were initially issued to accrue and pay distributions quarterly at three-month LIBOR plus 2.00%; however on July 12, 2023, after the LIBOR transition it will now accrue and pay distributions quarterly at three-month CME term SOFR plus a tenor spread adjustment of 0.26% plus 2.00 % on the stated liquidation amount of the trust preferred securities. These trust preferred securities are mandatorily redeemable upon maturity on April 15, 2035, or upon earlier redemption.
FCB Capital Trust III (“CTIII”): The trust preferred securities issued by CTIII were initially issued to accrue and pay distributions quarterly at three-month LIBOR plus 1.89%; however on September 15, 2023, after the LIBOR transition it will now accrue and pay distributions quarterly at three-month CME term SOFR plus a tenor spread adjustment of 0.26% plus 1.89% on the stated liquidation amount of the trust preferred securities. These trust preferred securities are mandatorily redeemable upon maturity on June 15, 2037, or upon earlier redemption.
Community First (AR) Statutory Trust I (“CFSTI”): The trust preferred securities issued by CFSTI were initially issued to accrue and pay distributions quarterly at three-month LIBOR plus 3.25%; however on September 26, 2023, after the LIBOR transition it will now accrue and pay distributions quarterly at three-month CME term SOFR plus a tenor spread adjustment of 0.26% plus 3.25% on the stated liquidation amount of the trust preferred securities. These trust preferred securities are mandatorily redeemable upon maturity on December 26, 2032, or upon earlier redemption.
American State Bank Statutory Trust I (“ASBSTI”): The trust preferred securities issued by ASBSTI were initially issued to accrue and pay distributions quarterly at three-month LIBOR plus 1.80%; however on September 15, 2023, after the LIBOR transition it will now accrue and pay distributions quarterly at three-month CME term SOFR plus a tenor spread adjustment of 0.26% plus 1.80% on the stated liquidation amount of the trust preferred securities. These trust preferred securities are mandatorily redeemable upon maturity on September 15, 2035, or upon earlier redemption.
Subordinated debentures as of March 31, 2026, and December 31, 2025, are listed below.
Weighted Average Term in Years
CTII subordinated debentures
10,310
5.93
9.1
CTIII subordinated debentures
5,155
5.82
11.2
CFSTI subordinated debentures
7.22
6.7
ASBSTI subordinated debentures
7,732
5.74
Total contractual balance
28,352
Fair market value adjustments
(3,951
Total subordinated debentures
6.17
9.3
5.87
11.5
7.20
7.0
(4,044
On June 29, 2020, the Company entered into Subordinated Note Purchase Agreements with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $42,000 in aggregate principal amount of its 7.00% Fixed-to-Floating Rate Subordinated notes due 2030. The notes were issued under an Indenture, dated as of June 29, 2020 (the “Indenture”), by and between the Company and UMB Bank, N.A., as trustee. The notes will mature on June 30, 2030. From June 29, 2020, through June 29, 2025, the Company will pay interest on the notes semi-annually in arrears on June 30 and December 30 of each year, commencing on December 30, 2020, at a fixed interest rate of 7.00%. Beginning June 30, 2025, the notes convert to a floating interest rate, to be reset quarterly, equal to the then-current Three-Month Term SOFR, as defined in the Indenture, plus 688 basis points. Interest payments during the floating-rate period will be paid quarterly in arrears on March 30, June 30, September 30 and December 30 of each year, commencing on September 30, 2025. On July 23, 2020, the Company closed on an additional $33,000 of subordinated notes with the same terms as the June 29, 2020 issue.
On June 30, 2025, the Company redeemed the subordinated note described above.
On July 17, 2025, the Company entered into new Subordinated Note Purchase Agreements with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $75,000 in aggregate principal amount of its 7.125% Fixed-to-Floating Rate Subordinated notes due 2035. The notes were issued under an Indenture, dated as of June 17, 2025 (the “Indenture”), by and between the Company and UMB Bank, N.A., as trustee. The notes will mature on August 1, 2035. From July 17, 2025, through August 1, 2030, the Company will pay interest on the notes semi-annually in arrears on February 1 and August 1 of each year, commencing on February 1, 2026, at a fixed interest rate of 7.125%. Beginning August 1, 2030, the notes convert to a floating interest rate, to be reset quarterly, equal to the then-current Three-Month Term SOFR, as defined in the Indenture, plus 349 basis points for each quarterly interest period during the floating rate period. Interest payments during the floating-rate period will be paid quarterly in arrears on February 1, May 1, August 1 and November 1 of each year, commencing on November 1, 2030.
Subordinated notes as of March 31, 2026, are listed below.
75,000
7.13
Total principal outstanding
Debt issuance cost
(1,138
Total subordinated notes
Subordinated notes as of December 31, 2025, are listed below.
9.6
(1,163
Future principal repayments
Future principal repayments of the March 31, 2026 outstanding balances are as follows.
Retail Repurchase Agreements
FHLB Advances
Subordinated Debentures
Subordinated Notes
269,650
308,659
47,890
12,945
3,985
6,025
7,165
110,517
490,021
NOTE 8 – STOCKHOLDERS’ EQUITY
Preferred stock
The Company’s articles of incorporation provide for the issuance of shares of preferred stock. At March 31, 2026, and December 31, 2025, there was no preferred stock outstanding.
The Company’s articles of incorporation provide for the issuance of 45,000,000 shares of Class A voting common stock (“Class A common stock”) and 5,000,000 shares of Class B non-voting common stock (“Class B common stock”), both of which have a par value of $0.01 per share.
The following table presents shares that were issued, held in treasury or were outstanding at March 31, 2026, and December 31, 2025.
Class A common stock – issued
27,025,401
24,688,892
Class A common stock – held in treasury
(6,249,580
(5,735,107
Class A common stock – outstanding
Class B common stock – issued
234,903
Class B common stock – held in treasury
(234,903
Class B common stock – outstanding
Treasury stock is stated at cost, determined by the first-in first-out method.
In 2019, the Company’s Board of Directors adopted the Equity Bancshares, Inc. 2019 Employee Stock Purchase Plan (“ESPP”). The ESPP enables eligible employees to purchase the Company’s common stock at a price per share equal to 85% of the lower of the fair market value of the common stock at the beginning or end of each offering period. ESPP compensation expense of $44 was recorded for the three months ended March 31, 2026. ESPP compensation expense of $41 was recorded for the three months ended March 31, 2025. The following table presents the offering periods and costs associated with this program during the reporting period.
Offering Period
Shares Purchased
Cost Per Share
Compensation Expense
August 15, 2023 to February 14, 2024
16,884
21.79
65
February 15, 2024 to August 14, 2024
12,581
28.52
63
August 15, 2024 to February 14, 2025
32.05
79
February 15, 2025 to August 14, 2025
12,940
33.69
In September of 2025, the Company’s Board of Directors approved a share repurchase plan for up to 1,000,000 shares of outstanding common stock beginning on October 1, 2025, and concluding on September 30, 2026. The repurchase program does not obligate the Company to acquire a specific dollar amount or number of shares, and it may be extended, modified or
discontinued at any time without notice. Non-objection from the Federal Reserve Bank of Kansas City related to this repurchase plan was received September 23, 2025. At March 31, 2026, there are 327,662 shares remaining or repurchase under the program.
At March 31, 2026, and December 31, 2025, accumulated other comprehensive income (loss) consisted of (i) the after-tax effect of unrealized gains (losses) on available-for-sale securities and (ii) unrealized gains (losses) on cash flow hedges.
Components of accumulated other comprehensive income as of March 31, 2026, and December 31, 2025, are listed below.
Available-for-SaleSecurities
Cash Flow Hedges
AccumulatedOtherComprehensiveIncome (Loss)
Net unrealized or unamortized gains (losses)
928
8,098
1,220
9,318
(1,996
(290
(2,286
6,102
NOTE 9 – REGULATORY MATTERS
Banks and bank holding companies (on a consolidated basis) are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The Basel III rules require banks to maintain a Common Equity Tier 1 capital ratio of 6.5%, a total Tier 1 capital ratio of 8%, a total capital ratio of 10% and a leverage ratio of 5% to be deemed “well capitalized” for purposes of certain rules and prompt corrective action requirements. The risk-based ratios include a “capital conservation buffer” of 2.5% which can limit certain activities of an institution, including payment of dividends, share repurchases and discretionary bonuses to executive officers, if its capital level is below the buffer amount. Management believes as of March 31, 2026, the Company and Bank meet all capital adequacy requirements to which they are subject.
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as are asset growth and acquisitions, and capital restoration plans are required.
As of March 31, 2026, the most recent notifications from the federal regulatory agencies categorized Equity Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Equity Bank must maintain minimum regulatory capital ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed Equity Bank’s category.
The Company’s and Equity Bank’s capital amounts and ratios at March 31, 2026, and December 31, 2025, are presented in the table below. Ratios provided for Equity Bancshares, Inc. represent the ratios of the Company on a consolidated basis.
35
Actual
Minimum Required forCapital Adequacy Under Basel III
To Be WellCapitalized UnderPrompt CorrectiveProvisions
Ratio
Total capital to risk weighted assets
Equity Bancshares, Inc.
840,637
14.36
614,699
10.50
N/A
Equity Bank
807,147
13.82
613,378
584,170
10.00
Tier 1 capital to risk weighted assets
700,029
11.96
497,613
8.50
740,401
12.67
496,544
467,336
8.00
Common equity Tier 1 capital to risk weighted assets
675,629
11.54
409,799
7.00
408,919
379,710
6.50
Tier 1 leverage to average assets
9.59
292,121
4.00
10.18
291,061
363,827
5.00
769,823
16.31
495,484
691,869
14.80
490,860
467,485
641,476
13.59
401,106
637,359
13.63
397,363
373,988
617,168
13.08
330,323
327,240
303,866
10.64
241,199
10.60
240,602
300,753
Equity Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval.
NOTE 10 – EARNINGS PER SHARE
The following table presents earnings per share for the three months ended March 31, 2026, and 2025.
March 31,2025
Basic:
Net income (loss) allocable to common stockholders
Weighted average common shares outstanding
21,017,906
17,475,058
Weighted average vested restricted stock units
19,148
7,763
Weighted average shares
21,037,054
17,482,821
Basic earnings (loss) per common share
Diluted:
Weighted average common shares outstanding for:
Basic earnings per common share
Dilutive effects of the assumed exercise of stock options
103,116
62,743
Dilutive effects of the assumed vesting of restricted stock units
121,377
112,291
Dilutive effects of the assumed exercise of ESPP purchases
1,617
1,738
Average shares and dilutive potential common shares
21,263,164
17,659,593
Diluted earnings (loss) per common share
Average shares not included in the computation of diluted earnings per share because they were antidilutive are shown in the following table as of March 31, 2026, and 2025.
Stock options
325,968
237,004
Restricted stock units
63,508
74,263
Total antidilutive shares
389,476
311,267
NOTE 11 – FAIR VALUE
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to disclose the fair value of its financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For disclosure purposes, the Company groups its financial and non-financial assets and liabilities into three different levels based on the nature of the instrument and the availability and reliability of the information that is used to determine fair value. The three levels of inputs that may be used to measure fair values are defined as follows.
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
Level 1 inputs are considered to be the most transparent and reliable. The Company assumes the use of the principal market to conduct a transaction of each particular asset or liability being measured and then considers the assumptions that market participants would use when pricing the asset or liability. Whenever possible, the Company first looks for quoted prices for identical assets or liabilities in active markets (Level 1 inputs) to value each asset or liability. However, when inputs from identical assets or liabilities on active markets are not available, the Company utilizes market observable data for similar assets and liabilities. The Company maximizes the use of observable inputs and limits the use of unobservable inputs to occasions when observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity of the
actual financial instrument or of the underlying collateral. Although, in some instances, third party price indications may be available, limited trading activity can challenge the implied value of those quotations.
The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of each instrument under the hierarchy.
Fair Value of Assets and Liabilities Measured on a Recurring Basis
The fair values of securities available-for-sale and equity securities with readily determinable fair value are carried at fair value on a recurring basis. To the extent possible, observable quoted prices in an active market are used to determine fair value and, as such, these securities are classified as Level 1. For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities, generally determined by matrix pricing, which is a mathematical technique widely used in the industry to value securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Company’s available-for-sale securities, including U.S. Government sponsored entity securities, residential mortgage-backed securities (all of which are issued or guaranteed by government sponsored agencies), private-label residential mortgage-backed securities, corporate securities, Small Business Administration securities, and State and Political Subdivision securities are classified as Level 2.
The fair values of derivatives are determined based on a valuation pricing model using readily available observable market parameters such as interest rate yield curves (Level 2 inputs) adjusted for credit risk attributable to the seller of the interest rate derivative. Cash collateral received from or delivered to a derivative counterparty is classified as Level 1.
Assets and liabilities measured at fair value on a recurring basis are summarized in the following tables as of March 31, 2026, and December 31, 2025.
(Level 1)
(Level 2)
(Level 3)
Assets:
Available-for-sale securities:
Derivative assets:
Derivative assets (included in other assets)
Cash collateral held by counterparty and netting adjustments
Total derivative assets
Other assets:
Equity securities with readily determinable fair value
Total other assets
36,237
1,091,978
Liabilities:
Derivative liabilities:
Derivative liabilities (included in other liabilities)
Total derivative liabilities
Government-sponsored residential mortgage- backed securities
33,065
1,001,076
There were no material transfers between levels during the three months ended March 31, 2026, or the year ended December 31, 2025. The Company’s policy is to recognize transfers into or out of a level as of the end of a reporting period.
Fair Value of Assets and Liabilities Measured on a Non-recurring Basis
Certain assets are measured at fair value on a non-recurring basis when there is evidence of loans individually assessed for credit losses. The fair value of loans individually assessed for credit losses with specific allowance for credit losses are generally based on recent real estate appraisals of the collateral. Declines in the fair values of other real estate owned, subsequent to their initial acquisitions, are also based on recent real estate appraisals less estimated selling costs.
Real estate appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments made to real estate appraisals and other loan valuations are typically significant and result in a Level 3 classification of the inputs for determining fair value.
Assets measured at fair value on a non-recurring basis are summarized below as of March 31, 2026, and December 31, 2025.
Loans individually evaluated for credit losses:
9,580
18,616
2,635
1,274
763
Other real estate owned:
2,173
39
5,119
18,517
2,829
905
1,257
The Company did not record any liabilities for which the fair value was measured on a non-recurring basis at March 31, 2026, or December 31, 2025.
Valuations of individually evaluated loans and other real estate owned utilize third party appraisals or broker price opinions and were classified as Level 3 due to the significant judgment involved. Appraisals may include the utilization of unobservable inputs, subjective factors and utilize quantitative data to estimate fair market value.
The following table presents additional information about the unobservable inputs used in the fair value measurement of financial assets measured on a nonrecurring basis that were categorized with Level 3 of the fair value hierarchy as of March 31, 2026, and December 31, 2025.
ValuationTechnique
UnobservableInput
Range(weighted average) or Multiple of Earnings
Real estate loans individually evaluated for credit losses
19,384
SalesComparisonApproach
Adjustments fordifferences betweencomparable sales
4% - 17%(11%)
Commercial business
13,484
Market Comparable Companies
Adjustments for differences between EBITDA multiples and revenue multiples
6% - 21%(10%).1% - 1%(1%)
Other real estate owned individually evaluated for credit losses
2,206
3% - 13%(8%)
13,337
Sales ComparisonApproach
Adjustments for differencesbetween comparable sales
4% - 22%(13%)
15,290
2,198
Carrying amount and estimated fair values of financial instruments at period end were as follows for March 31, 2026, and December 31, 2025.
CarryingAmount
EstimatedFair Value
Financial assets:
Interest bearing deposits in other bank
1,086,431
Loans, net of allowance for credit losses
5,179,690
Derivative assets
Cash collateral held by derivative counterparty and netting adjustments
7,148,999
6,964,751
600,402
1,184,659
Financial liabilities:
6,295,455
75,362
Interest payable
7,421
Derivative liabilities
6,805,945
6,801,990
6,801,709
41
995,318
4,126,632
5,861,972
5,843,341
640,882
1,075,827
5,135,904
75,524
9,757
5,599,038
5,598,365
5,598,373
The fair value of off-balance-sheet items is not considered material.
NOTE 12 – COMMITMENTS AND CREDIT RISK
The Company extends credit for commercial real estate mortgages, residential mortgages, working capital financing and loans to businesses and consumers.
Commitments to Originate Loans and Available Lines of Credit
Commitments to originate loans and available lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments and lines of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments and lines of credit may expire without being drawn upon, the total commitment and lines of credit amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Mortgage loans in the process of origination represent amounts that the Company plans to fund within a normal period of 60 to 90 days, and which are intended for sale to investors in the secondary market.
The contractual amounts of commitments to originate loans and available lines of credit as of March 31, 2026, and December 31, 2025, were as follows.
FixedRate
VariableRate
Commitments to make loans
98,672
474,060
64,972
406,614
Mortgage loans in the process of origination
7,629
257
3,152
117
Unused lines of credit
200,138
664,498
195,483
538,731
At March 31, 2026, the fixed rate loan commitments have interest rates ranging from 3.45% to 9.19% and maturities ranging from 1 month to 59 months.
Standby Letters of Credit
Standby letters of credit are irrevocable commitments issued by the Company to guarantee the performance of a customer to .a third party once specified pre-conditions are met. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers.
The contractual amounts of standby letters of credit as of March 31, 2026, and December 31, 2025, were as follows.
Standby letters of credit
12,005
31,401
11,637
31,719
NOTE 13 – LEGAL MATTERS
The Company is party to various matters of litigation in the ordinary course of business. The Company periodically reviews all outstanding pending or threatened legal proceedings and determines if such matters will have an adverse effect on the business, financial condition, results of operations or cash flows. A loss contingency is recorded when the outcome is probable and reasonably able to be estimated. Any loss contingency described below has been identified by the Company as reasonably possible to result in an unfavorable outcome for the Company or the Bank.
Equity Bank is party to a lawsuit filed on January 28, 2022, in the Sedgwick County Kansas District Court on behalf of one of our customers, alleging improperly collected overdraft fees. The plaintiff sought to have the case certified as a class action.
Equity Bank is party to a lawsuit filed on February 2, 2022, in Jackson County, Missouri District Court against the Bank on behalf of one of our Missouri customers alleging improperly collected overdraft fees. The plaintiff sought to have the case certified as a class action.
Equity Bank is party to a lawsuit filed on February 28, 2023, in Saline County, Missouri District Court against the Bank on behalf of one of our Missouri customers alleging improperly collected overdraft fees. The plaintiff sought to have the case certified as a class action.
The Company has reached a settlement of each of the above-described actions. In return for a comprehensive release of all claims listed above, the company has agreed to pay the total value of approximately $1,150 in cash and customer credits after court approvals expected in the second quarter of 2026.
NOTE 14 – REVENUE RECOGNITION
The majority of the Company’s revenues come from interest income on financial instruments, including loans, leases, securities and derivatives, which are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented with non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges and fees on deposits, debit card income, investment referral income, insurance sales commissions and other non-interest income related to loans and deposits.
43
Except for gains or losses from the sale of other real estate owned, all of the Company’s revenue from contracts with customers within the scope of ASC 606 are recognized in non-interest income. The following table presents the Company’s sources of non-interest income for the three months ended March 31, 2026, and 2025.
Mortgage banking(a)
Increase in bank-owned life insurance(a)
Net gain (loss) from securities transactions(a)
Investment referral income
118
Trust income
542
457
Insurance sales commissions
212
Recovery on zero-basis purchased loans(a)
Income (loss) from equity method investments(a)
Other non-interest income related to loans and deposits
1,171
1,371
Other non-interest income not related to loans and deposits(a)
165
Total other non-interest income
(a) Not within the scope of ASC 606.
NOTE 15 – BUSINESS COMBINATIONS
Acquisition of Frontier Holdings LLC: At close of business on January 1, 2026, the Company acquired 100% of the outstanding common shares of Frontier Holdings LLC, ("Frontier"). Frontier is the parent company of Frontier Bank, which has seven branch locations in Lincoln, Falls City, Madison, Norfolk, Omaha and Pender. Results of operations of Frontier were included in the Company's results of operations beginning January 2, 2026. Acquisition-related costs associated with this acquisition were $5,333 ($4,142 on an after-tax basis) and are included in merger expense in the Company's income statement for the three months ended March 31, 2026.
Information necessary to recognize the fair value of assets acquired and liabilities assumed is currently still ongoing and such amounts are subject to change for up to one year from the acquisition date. The acquisition was an expansion of the Company's footprint into Nebraska with the addition of seven branch locations throughout the state.
The following table summarizes the amounts of assets acquired and liabilities assumed by Frontier on January 1, 2026.
Fair value of consideration:
Cash
32,501
131,596
Recognized amounts of identifiable assets acquired and
liabilities assumed:
12,819
Interest bearing time deposits in other banks
83,014
Loans
1,278,732
Premises and equipment
2,678
Core deposit intangible
10,830
27,831
Total assets acquired
1,416,004
1,131,969
140,181
Other borrowed funds
22,486
12,629
Total liabilities assumed
Total identifiable net assets
108,739
22,857
The following tables reconcile the par value of Frontier loan portfolio as of the purchase date to the fair value indicated in the table above. For purchased seasoned loans and purchase-credit deteriorated assets, as required by CECL, the fair value mark is divided between an adjustment to par and an addition to the ACL. The addition to ACL represents the portion of the fair value mark attributable to expected credit losses and was determined by comparing a valuation that reflects management's loss rate assumptions with a valuation assuming no credit losses.
Purchased Seasoned Loans
Loan Par Value
Discounts from Other Factors Excluding ACL
Credit Marks in ACL
Purchase Price
733,497
(8,103
(1,108
724,286
151,744
(817
(718
150,209
130,492
(1,148
(114
129,230
164,168
(2,164
(1,254
160,750
77,170
77,074
8,287
(87
8,228
Total Purchased Seasoned loans
1,265,358
(12,288
(3,293
1,249,777
Purchase Credit Deteriorated Loans
Credit Marksin ACL
13,074
(1,497
10,722
11,291
(1,962
8,132
(240
1,445
7,867
(2,673
(440
4,754
2,086
(56
(202
1,828
Total Purchase Credit Deteriorated loans
36,180
(5,669
(3,620
26,891
Total Purchased Loans
1,276,668
Assuming the Frontier acquisition would have taken place on January 1, 2025, total combined revenue would have been $71,055 for the three months ended March 31, 2025, and $253,712 for the year ended December 31, 2025. Net income would have been $22,752 at March 31, 2025, and $40,506 at December 31, 2025. The pro forma amounts disclosed exclude merger expense from non-interest expense, which is considered a non-recurring adjustment. Separate revenue and earnings of the former Frontier locations are not available following the acquisition.
On April 2, 2025 the Company entered into an agreement and plan of reorganization with NBC Corp. of Oklahoma ("NBC"). The transaction was completed at close of business on July 2, 2025. Acquisition-related costs associated with the NBC transaction during the three months ended March 31, 2026 were $392 ($310 on an after-tax basis).
NOTE 16 – SEGMENT REPORTING
Equity Bancshares, Inc. is a financial holding company, whose principal activity is the ownership and management of its wholly-owned subsidiaries, including Equity Bank (“Equity Bank”). As a community-oriented financial institution, substantially all of the Company’s operations involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of these banking operations, which constitute the Company’s only operating segment for financial reporting purposes.
The Company’s chief operating decision maker is comprised of the executive leadership team. For Equity Bancshares Inc., the executive leadership team uses gross profit and profit or loss from operations before interest and income taxes to allocate resources for in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for profit measures when making decisions about allocating capital and personnel to the operating segment. For Equity Bank, the executive leadership team uses net-interest income and non-interest income to allocate resources (including employees, financial, or capital resources) to that segment in the annual budget and forecasting process and uses that measure as a basis for evaluating lending terms for customer loans.
The following tables present information about reported segment revenue, measures of a segment’s profit or loss, significant segment expenses, and measure of a segment’s assets for the three months ended March 31, 2026, and 2025. The Company does not allocate all holding company expenses, income taxes or unusual items to the reportable segment. The following tables present the reconciliations of reportable segment revenues and measures of profit or loss and line item reconciliation to the Company’s consolidated financial statement totals.
46
Unallocated Holding
Company
Amounts
Eliminations
Three Months Ended March 31, 2026
107,976
32,543
1,817
75,433
(1,769
69,478
2,236
20,512
(20,509
(a)
9,484
26,253
4,764
5,384
1,657
111
Other real estate owned
4,352
1,373
4,077
Intersegment service charges
52,054
2,915
26,908
15,828
5,616
(355
Total segment profit/(loss)
21,292
16,183
(a) Elimination of equity in earnings of subsidiary
Three Months Ended March 31, 2025
74,623
22,522
1,870
52,101
(1,809
49,379
Net gain on acquisition and branch sales
17,044
(17,044
19,896
1,330
197
99
3,160
434
(375
375
37,984
1,066
21,725
14,169
4,440
(631
17,285
14,800
For the Three Months Ended March 31,
Administrative Adjustments
1,434
1,479
Amortization of operating lease right-of-use-asset
2,056
Purchase of long lived assets
3,796
1,464
March 31,
Assets
Total assets for reportable segments
7,648,375
6,322,637
Holding company administrative adjustments
932,408
848,320
Elimination of bank cash and equity in earnings of subsidiaries
(25,447
(40,544
Elimination of investment in subsidiaries
(887,966
(757,241
Consolidated total assets
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K filed with the SEC on March 6, 2026, and our consolidated financial statements and related notes appearing elsewhere in this Quarterly Report. The following discussion contains “forward-looking statements” that reflect our future plans, estimates, beliefs and expected performance. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. See “Cautionary Note Regarding Forward-Looking Statements.” Also, see the risk factors and other cautionary statements described under the heading “Item 1A: Risk Factors” included in the Annual Report on Form 10-K and in Item 1A of this Quarterly Report. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.
This discussion and analysis of our financial condition and results of operation includes the following sections:
(Dollars in thousands, except per share data)
September 30,2025
June 30,2025
Statement of Income Data (for the quarterly period ended)
90,866
91,098
74,187
27,364
28,613
24,385
63,502
62,485
49,802
6,228
154
(53,352
Other non-interest income
9,595
9,378
8,873
8,577
10,318
1,481
6,163
355
Loss on debt extinguishment
1,361
Other non-interest expense
49,244
45,106
42,919
38,285
38,984
Income (loss) before income taxes
26,463
(37,304
18,371
Provision for income taxes
4,379
(7,641
3,107
Net income (loss)
22,084
(29,663
15,264
1.16
(1.55
0.87
1.15
Balance Sheet Data (at period end)
699,410
366,204
Securities available-for-sale
903,858
973,402
950,453
Securities held-to-maturity
5,243
5,236
5,226
617
Gross loans held for investment
4,268,587
3,600,728
3,631,628
53,469
45,270
Loans held for investment, net of allowance for credit losses
4,215,118
3,555,458
3,585,804
Goodwill and core deposit intangibles, net
135,494
103,735
100,468
66,009
67,025
Naming rights, net
5,629
5,703
5,778
5,852
5,926
6,365,631
5,373,837
5,446,100
5,094,769
4,234,918
4,405,364
Borrowings
484,932
438,009
481,772
444,221
371,126
5,653,739
4,738,201
4,828,776
711,892
635,636
Tangible common equity*
676,487
622,616
605,646
563,775
544,373
Performance ratios
Return on average assets (ROAA) annualized
0.92
1.43
(1.93
)%
1.18
1.17
Return on average equity (ROAE) annualized
8.17
12.07
(16.45
9.76
10.07
Return on average tangible common equity (ROATCE)* annualized
10.77
14.91
(18.31
11.69
12.12
Yield on loans annualized
6.80
7.01
7.18
6.94
7.15
Cost of interest-bearing deposits annualized
2.51
2.43
2.58
2.47
2.44
Cost of total deposits
2.00
1.88
1.98
1.93
1.90
Net interest margin annualized
4.33
4.47
4.45
4.17
4.27
Efficiency ratio*
56.68
59.98
58.31
63.62
62.43
Non-interest expense to net interest income plus non-interest income
66.11
63.79
272.59
68.51
64.42
Non-interest income / average assets annualized
0.52
0.62
(2.90
0.66
Non-interest expense / average assets annualized
2.99
3.01
3.20
3.08
3.04
Dividend payout ratio
22.03
15.73
(11.78
17.49
17.81
Performance ratios - Core
Core earnings per diluted share*
1.32
1.26
1.21
0.99
0.90
Core return on average assets*
1.52
1.57
1.35
1.24
Core return on average equity*
13.41
13.23
12.47
11.18
10.69
Core return on average tangible common equity*
16.10
15.56
14.30
12.64
12.14
Core non-interest expense / average assets*
2.57
2.82
2.71
2.86
2.94
Capital Ratios
Tier 1 Leverage Ratio
9.49
10.41
11.76
Common Equity Tier 1 Capital Ratio
12.84
15.07
14.70
Tier 1 Risk Based Capital Ratio
13.35
15.67
15.30
Total Risk Based Capital Ratio
16.09
16.84
18.32
Total Stockholders equity / Total Assets
10.66
11.49
11.83
11.34
Tangible common equity to tangible assets*
8.99
9.94
9.68
10.63
10.13
Book value per share
39.37
38.64
37.25
36.27
35.23
Tangible common book value per share*
32.58
32.86
31.69
32.17
31.07
Tangible common book value per diluted share*
32.30
32.43
31.41
31.89
30.84
* The value noted is considered a Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures see “Non-GAAP Financial Measures” in this Item 2.
51
We are a financial holding company headquartered in Wichita, Kansas. Our wholly-owned banking subsidiary, Equity Bank, provides a broad range of financial services primarily to businesses and business owners as well as individuals through our network of 84 full-service banking sites located in Arkansas, Kansas, Missouri, Nebraska and Oklahoma. As of March 31, 2026, we had consolidated total assets of $7.67 billion, total loans held for investment, net of allowance, of $5.36 billion, total deposits of $6.30 billion, and total stockholders’ equity of $817.6 million. During the three month period ended March 31, 2026, the Company had net income of $17.0 million. The Company had net income of $15.0 million for the three month period ended March 31, 2025.
Our significant accounting policies are integral to understanding the results reported. Our accounting policies are described in detail in Note 1 to the December 31, 2025, audited financial statements included in our Annual Report on Form 10-K filed with the SEC on March 6, 2026. The preparation of our financial statements in accordance with GAAP requires management to make a number of judgments and assumptions that affect our reported results and disclosures. Several of our accounting policies are inherently subject to valuation assumptions and other subjective assessments and are more critical than others in terms of their importance to results. Changes in any of the estimates and assumptions underlying critical accounting policies could have a material effect on our financial statements. Our accounting policies are described in “NOTE 1 – NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” in the Notes to Interim Consolidated Financial Statements.
The accounting policies that management believes are the most critical to an understanding of our financial condition and results of operations and require complex management judgment are described below.
Allowance for Credit Losses: The allowance for credit losses represents management’s estimate of all expected credit losses over the expected life of our loan portfolio. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management’s evaluation of historical default and loss experience, current and projected economic conditions, asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay a loan (including the timing of future payments), the estimated value of any underlying collateral, composition of the loan portfolio, industry and peer bank loan quality indications, and other pertinent factors, including regulatory recommendations. The level of the allowance for credit losses maintained by management is believed adequate to absorb all expected future losses inherent in the loan portfolio at the balance sheet date; however, determining the appropriateness of the allowance is complex and requires judgment by management about the effect of matters that are inherently uncertain. The actual realized facts and circumstances may be different than those currently estimated by management and may result in significant changes in the allowance for credit losses in future periods. The allowance for credit losses, as reported in our consolidated balance sheets, is adjusted by provision for credit losses, which is recognized in earnings and is reduced by the charge-off of loan amounts, net of recoveries.
The allowance represents management’s best estimate, but significant changes in circumstances relating to loan quality and economic conditions could result in significantly different results than what is reflected in the consolidated balance sheet as of March 31, 2026. Likewise, an improvement in loan quality or economic conditions may allow for a further reduction in the required allowance. Changing credit conditions would be expected to impact realized losses, driving variability in specifically assessed allowances, as well as calculated quantitative and more subjectively analyzed qualitative factors. Depending on the volatility in these conditions, material impacts could be realized within the Company’s operations. Significant changes in economic conditions, both positive and negative, could result in unexpected realization of provision or reversal of allowance for credit losses due to its impact on the quantitative and qualitative inputs to the Company’s calculation. Under the CECL methodology, the impact of these conditions has the potential to further exacerbate periodic differences due to its life of loan perspective. The life of loans calculated under the methodology is based in contractual duration, modified for prepayment expectations, making significant variation in periodic results possible due to changing contractual or adjusted duration of the assets within the calculation.
Goodwill: Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment is recognized and expensed in the period identified. Goodwill will be assessed more frequently if a triggering event occurs which indicates that the carrying value of the asset might be impaired. We have selected December 31 as the date to perform our annual goodwill impairment test. Goodwill is the only intangible asset with an indefinite useful life. For the quarter ended March 31, 2026, management conducted the quarterly qualitative assessment and has determined there was no evidence of a triggering event as of or during the period then ended. Based on this qualitative analysis and conclusion, it was determined that a more robust quantitative assessment was not necessary at our measurement date.
When performing quantitative goodwill impairment assessments, management is required to estimate the fair value of the Company’s equity in a change in control transaction. To complete this valuation, management is required to derive assumptions related to industry performance, reporting unit business performance, economic and market conditions, and various other assumptions, many of which require significant management judgment.
Although management believes that the judgments and estimates used are reasonable, actual results could differ and we may be exposed to losses or gains that could be material.
We generate our revenue from interest income and fees on loans, interest and dividends on investment securities, and non-interest income, such as service charges and fees, debit card income, trust and mortgage banking income. We incur interest expense on deposits and other borrowed funds and non-interest expense, such as salaries and employee benefits and occupancy expenses.
Changes in interest rates earned on interest-earning assets or incurred on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and non-interest-bearing liabilities and stockholders’ equity, are usually the largest drivers of periodic change in net interest income. Fluctuations in interest rates are driven by many factors, including governmental monetary policies, inflation, deflation, macroeconomic developments, changes in unemployment, the money supply, political and international circumstances and domestic and foreign financial markets. Periodic changes in the volume and types of loans in our loan portfolio are affected by, among other factors, economic and competitive conditions in Arkansas, Kansas, Missouri, Nebraska and Oklahoma, as well as developments affecting the consumer, commercial and real estate sectors within these markets.
Net Income
Three months ended March 31, 2026, compared with three months ended March 31, 2025: Net income allocable to common stockholders for the three months ended March 31, 2026, was $17.0 million, or $0.80 diluted earnings per share as compared to $15.0 million, or $0.85 diluted earnings per share for the three months ended March 31, 2025, an increase of $1.9 million. The increase was primarily due to an increase in interest and dividend income of $33.3 million, partially offset by increases in non-interest expense of $15.9 million, interest expense of $10.0 million, provision for loan losses of $3.2 million and in the provision for taxes of $1.5 million.
Excluding the pre-tax merger and acquisition expenses of $5.7 million and provisioning of $6.1 million, realized in closing our transaction with Frontier, pre-tax income was $34.4 million for the quarter. Tax effected at 23%, adjusted net income was $26.3 million, or $1.23 per diluted share.
Net Interest Income and Net Interest Margin Analysis
Net interest income is the difference between interest income on interest-earning assets, including loans and securities, and interest expense incurred on interest-bearing liabilities, including deposits and other borrowed funds. To evaluate net interest income, management measures and monitors (1) yields on loans and other interest-earning assets, (2) the costs of deposits and other funding sources, (3) the net interest spread, and (4) net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as net interest income divided by average interest-earning assets. Because non-interest-bearing sources of funds, such as non-interest-bearing deposits and stockholders’ equity also fund interest-earning assets, net interest margin includes the benefit of these non-interest-bearing sources of funds. Net interest income is affected by changes in the amount and mix of interest-earning assets and interest-bearing liabilities, referred to as a “volume change,” and is also affected by changes in yields earned on interest-earning assets and rates paid on interest-bearing deposits and other borrowed funds, referred to as a “yield/rate change.”
Three months ended March 31, 2026, compared with three months ended March 31, 2025: The following table shows the average balance of each principal category of assets, liabilities, and stockholders’ equity and the average yields on interest-earning assets and average rates on interest-bearing liabilities for the three months ended March 31, 2026, and 2025. The yields and rates are calculated by dividing annualized income or annualized expense by the average daily balances of the associated assets or liabilities.
Average Balance Sheets and Net Interest Analysis
(Dollars in thousands)
AverageOutstandingBalance
InterestIncome/Expense
AverageYield/Rate(3)(4)
Interest-earning assets:
Loans(1)
989,469
17,698
7.25
690,124
14,322
8.42
2,266,995
37,977
6.79
1,424,110
24,591
Real estate construction
672,347
11,931
457,910
8,802
7.80
718,633
9,653
5.45
565,672
6,715
4.81
424,055
7,714
7.38
264,100
5,415
8.32
264,213
4,780
7.34
84,901
1,667
7.96
118,569
1,709
5.85
88,413
1,485
6.81
5,454,281
3,575,230
Taxable securities
1,102,263
5.03
937,021
3.94
Nontaxable securities
23,989
3.75
56,815
2.69
Total Securities
1,126,252
13,881
993,836
9,491
315,683
3.44
202,906
4.39
Total interest-earning assets
6,896,216
6.35
4,771,972
Non-interest-earning assets:
4,619
139,996
117,437
148,867
133,272
Goodwill, core deposit and other intangibles, net
141,742
72,389
Other non-interest-earning assets
119,504
112,728
7,451,709
5,212,417
Interest-bearing liabilities:
Interest-bearing demand deposits
1,450,755
6,871
1.92
1,061,195
5,580
2.13
Savings and money market
1,975,221
10,574
2.17
1,466,589
8,001
2.21
3,425,976
17,445
2.07
2,527,784
13,581
2.18
Certificates of deposit
1,495,970
13,033
693,346
5,796
4,921,946
3,221,130
FHLB term and line of credit advances
202,439
3.78
274,385
4.31
Federal Reserve Bank discount window
98,194
7.43
97,540
7.69
Other borrowings
48,070
1.62
46,213
Total interest-bearing liabilities
5,270,660
2.64
3,639,268
2.72
Non-interest-bearing liabilities and stockholders’ equity:
Non-interest-bearing checking accounts
1,271,350
922,021
Non-interest-bearing liabilities
67,861
45,211
Stockholders’ equity
841,838
605,917
Interest rate spread
3.63
Net interest margin(2)
Total cost of deposits, including non-interest bearing deposits
6,193,296
4,143,151
Average interest-earning assets to interest-bearing liabilities
130.84
131.12
Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest yields/rates. The following table analyzes the change in volume variances and yield/rate variances for the three month periods ended March 31, 2026, and 2025.
Analysis of Changes in Net Interest Income
Increase (Decrease) Due to:
TotalIncrease /
Volume(1)
Yield/Rate(1)
(Decrease)
5,561
(2,185
3,376
14,141
(755
13,386
3,850
(721
3,129
1,976
962
2,938
2,968
(669
2,299
3,254
(141
3,113
(232
32,206
(3,741
28,465
1,780
2,765
4,545
(269
(155
Total securities
1,511
2,879
4,390
1,032
(547
485
34,749
(1,409
33,340
1,888
(597
2,725
2,573
4,613
(749
3,864
6,982
7,237
11,595
(494
11,101
(701
(329
(1,030
10,920
9,968
Net Interest Income
23,829
(457
23,372
Interest income increased $33.3 million for the quarter ended March 31, 2026, as compared to the quarter ended March 31, 2025. $28.5 million of the increase was due to increased volume of average interest earning assets, primarily attributable to the our mergers with Frontier and NBC. The average rate/yield on securities increased by 113 bps while the average yield/rate on loans decreased 35 bps, resulting in the overall yield/rate on interest-earning assets remaining unchanged compared to the same period in the prior year.
The increase in interest expense of $10.0 million was due to an increase in deposit interest expense of $11.1 million due to an increase in volume in deposits primarily attributable to our mergers with Frontier and NBC. As expected, cost of interest-bearing deposits increased 7 bps as market interest rate reductions were offset by a comparatively higher cost deposit portfolio contributed by Frontier.
During the quarter ended March 31, 2026 when compared to the quarter ended March 31, 2025, net interest margin increased 6 bp and net interest spread increased by 8 bp to 3.71% from 3.63%. The comparative expansion was driven by earning asset dynamics resulting in a consistent yield year over year coupled with market interest rate declines driving a reduction in overall cost of funds.
55
Provision for Credit Losses
We maintain an allowance for credit losses for estimated losses in our loan portfolio. The allowance for credit losses is increased by a provision for credit losses, which is a charge to earnings, and subsequent recoveries of amounts previously charged-off, but is decreased by charge-offs when the collectability of a loan balance is unlikely. Management estimates the allowance balance required using past loan loss experience within the Company’s portfolio. This historical loss calculation is then modified to reflect quantitative economic circumstances based on evidenced economic conditions and regression formulas, which incorporate lag factors in identifying a sufficiently predictive adjusted-R square, as well as qualitative factors not inherently reflected in our historical loss or quantitative economic inputs. Included in our qualitative assessment is the consideration of prospective economic conditions over the next 12 months, considered the Company’s reasonable and supportable forecast period. As these factors change, the amount of the credit loss provision changes.
Three months ended March 31, 2026, compared with three months ended March 31, 2025: During the three months ended March 31, 2026, there was a provision for credit losses of $6.0 million compared to a provision for credit losses of $2.7 million for the three months ended March 31, 2025. The provision for the three months ended is primarily attributable to the establishment of reserves on purchased seasoned loans acquired in the Frontier acquisition. The Company continues to estimate the allowance for credit losses with assumptions that anticipate slower prepayment rates and continued market disruption caused by the impact of U.S. trade and fiscal policy and the resulting impact on consumers and businesses. Net charge-offs for the three months ended March 31, 2026 and 2025, were $1.4 million and $165 thousand, respectively. For the three months ended March 31, 2026, gross charge-offs were $2.1 million, offset by gross recoveries of $701 thousand. In comparison, gross charge-offs were $1.1 million for the three months ended March 31, 2025, offset by gross recoveries of $974 thousand.
Non-Interest Income
The primary sources of non-interest income are service charges and fees, debit card income, mortgage banking income, trust income and increases in the value of bank-owned life insurance. Non-interest income does not include loan origination or other loan fees, which are recognized as an adjustment to yield using the interest method.
Three months ended March 31, 2026, compared with three months ended March 31, 2025: The following table provides a comparison of the major components of non-interest income for the three months ended March 31, 2026, and 2025.
2026 vs. 2025
Change
429
20.8
613
24.5
242
228.3
(2,195
(61.1
25.4
18.6
473.0
Recovery on zero-basis purchased loans
(50.0
Income (loss) from equity method investments
1,336
1,437
(7.0
Total other
9.2
(723
Net gain (loss) on acquisition and branch sales
(120
(1000.0
(843
(8.2
Total non-interest income decreased $843 thousand during the three months ended March 31, 2026, as compared to the same period in 2025. The decrease is due to a death benefit that was realized during the three months ended March 31, 2025, that did not recur in the current quarter causing a decrease in bank owned life insurance of $2.2 million, partially offset by increases in debit card income of $613 thousand and service charges and fees of $429 thousand driven by additional customers gained through our mergers with NBC and Frontier.
Non-Interest Expense
Three months ended March 31, 2026, compared with three months ended March 31, 2025: For the three months ended March 31, 2026, non-interest expense totaled $55.0 million, an increase of $15.9 million, when compared to the three months ended March 31, 2025. Changes in the various components of non-interest expense for the three months ended March 31, 2026, and 2025, are discussed in more detail in the following table.
6,301
31.6
1,114
30.3
302
5.9
241
15.8
322
24.0
17.5
135
21.4
(154
(19.3
10.3
Amortization of core deposit intangible
883
84.5
369
286.0
(9.9
601
16.7
10,260
26.3
5,659
8574.2
15,919
40.8
Salaries and employee benefits: There was an increase in salaries and employee benefits of $6.3 million for the period ended March 31, 2026, as compared to the same period in 2025. The increase in employee salaries and wages was due to additional payroll costs as well as an increase in employee insurance expense, which is primarily driven by the increase in staff from the NBC and Frontier mergers.
Merger expenses: There was an increase in merger expenses of $5.7 million for the period ended March 31, 2026, as compared to the same period in 2025. This increase is primarily due to the completion of the Frontier merger in the first quarter of 2026.
Net occupancy and equipment: There was an increase in net occupancy and equipment of $1.1 million for the period ended March 31, 2026, as compared to the same period in 2025. The increase was primarily related to Frontier lease amortization, rent and depreciation.
Other: Other non-interest expenses consists of subscriptions, memberships and dues, employee expenses, including travel, meals, entertainment and education, supplies, printing, insurance, account related losses, correspondent bank fees, customer program expenses, losses net of gains on the sale of fixed assets, losses net of gains on the sale of repossessed assets other than real estate, other operating expenses, such as settlement of claims, losses from limited partnerships entered into for tax credits and provision for unfunded commitments. The overall increase is comprised of a number of insignificant changes within expense categories noted above.
Efficiency Ratio
The efficiency ratio is a supplemental financial measure utilized in the internal evaluation of performance and is not defined under GAAP. For a reconciliation of non-GAAP financial measures see “Non-GAAP Financial Measures” in this Item 2. Our efficiency ratio is computed by dividing non-interest expense, excluding goodwill impairment, merger expenses and loss on debt extinguishment, by the sum of net interest income and non-interest income, excluding net gains on sales of and settlement of securities and gain on acquisition. Generally, an increase in the efficiency ratio indicates that more resources are being utilized to generate the same volume of income, while a decrease would indicate a more efficient allocation of resources.
57
The efficiency ratio was 56.68% for the three months ended March 31, 2026, compared with 62.43% for the three months ended March 31, 2025. The positive trend was driven by increasing net interest income partially offset by increased non-interest expense, both primarily attributable to our mergers with NBC and Frontier.
Income Taxes
In general, the Company records income tax expense each quarter based on its estimate of the full year’s effective tax rate which includes, in addition to statutory rates, estimated amounts for tax-exempt interest income, non-taxable life insurance income, non-deductible executive compensation, valuation allowance on deferred assets, other non-deductible expense, and federal and state income tax credits anticipated to be available in proportion to anticipated annual income before income taxes. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits or shortfalls with respect to share-based compensation and changes in tax law.
During the tax year ended December 31, 2024, a Corporate Application for Tentative Refund was filed to carry back excess general business credits from 2023 to the 2020, 2021 and 2022 tax years resulting in a refund of $14.9 million which was received in the second quarter of 2025. Pursuant to Section 6405 of the Internal Revenue Code, refunds in excess of $5 million to a corporate taxpayer must be reviewed by the Joint Committee on Taxation (JCT). Accordingly, the IRS has referred the proposed refund to the JCT and remains under review as of March 31, 2026. While tax years ending 12/31/2020 and 12/31/2021 are closed for audit purposes, tax year ending 12/31/2022 remains open and, under request from the IRS, the statute of limitation has been extended to October 31, 2027.
On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act, which changes existing U.S. tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, repealing certain clean energy initiatives, in addition to other changes. While the company is still evaluating the tax provisions effective in 2026, it does not expect them to have a material effect on the company’s financial statements.
Three months ended March 31, 2026, compared with three months ended March 31 2025: The effective income tax rate for the three month period ended March 31, 2026, was 23.7% as compared to 20.2% for the three month period ended March 31, 2025. The increase in the effective tax rate for the quarter ended March 31, 2026, was primarily driven by a quarter over quarter increase in pre-tax income which diluted the relative impact of permanent tax benefits, a detriment in the current quarter related to the remeasurement of deferred state tax assets at a lower state tax rate, and proceeds from bank-owned life insurance policies received in the comparative quarter of 2025 that did not recur in the current quarter.
Total assets increased $1.29 billion from December 31, 2025, to $7.67 billion at March 31, 2026. This variance was primarily due to an increase in loans held for investment of $1.22 billion, partially offset by a decrease in cash and cash equivalents of $43.7 million. Total liabilities increased $1.2 billion to $6.85 billion at March 31, 2026. The change in total liabilities is primarily due to increase in total deposits of $1.16 billion and an increase in FHLB borrowings of $47.7 million. Total stockholders’ equity increased $85.6 million from $732.1 million at December 31, 2025, to $817.6 million at March 31, 2026, principally due to an increase of $101.1 million in additional paid-in-capital. Balance sheet changes for the quarter are primarily attributable to the Company’s merger with Frontier.
Loan Portfolio
The following table summarizes our loan portfolio by type of loan as of the dates indicated.
Composition of Loan Portfolio
Percent
17.8
19.5
150,164
18.4
Real estate loans:
54.5
53.0
731,915
32.9
13.3
13.9
138,296
23.8
7.9
6.6
152,381
54.6
Total real estate loans
4,110,012
75.7
3,087,420
73.5
1,022,592
33.1
4.6
4.5
60,578
32.1
1.9
2.5
(3,239
(3.1
Total loans held for investment
100.0
1,230,095
29.3
Total loans held for sale
6,239
448.2
Total loans held for investment (net of allowances)
1,218,606
29.4
Our commercial loan portfolio consists of various types of loans, most of which are generally made to borrowers located in the Wichita, Kansas City, and Tulsa Metropolitan Statistical Areas (“MSAs”), as well as various community markets throughout Arkansas, Kansas, Missouri, Nebraska and Oklahoma. The majority of our portfolio consists of commercial and industrial and commercial real estate loans, and a substantial portion of our borrowers’ ability to honor their obligations is dependent on local economies in which they operate.
At March 31, 2026, gross total loans, including loans held for sale, were 86.3% of deposits and 70.9% of total assets. At December 31, 2025, gross total loans, including loans held for sale, were 81.7% of deposits and 65.9% of total assets.
We provide commercial lines of credit, working capital loans, commercial real estate loans (including loans secured by owner-occupied commercial properties), term loans, equipment financing, aircraft financing, real property acquisition and development loans, borrowing base loans, real estate construction loans, homebuilder loans, SBA loans, agricultural and agricultural real estate loans, letters of credit and other loan products to national and regional companies, real estate developers, mortgage lenders, manufacturing and industrial companies and other businesses. The types of loans we make to consumers include residential real estate loans, home equity loans, home equity lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit.
Commercial and industrial: Commercial and industrial loans include loans used to purchase fixed assets, to provide working capital or meet other financing needs of the business.
Commercial real estate: Commercial real estate loans include all loans secured by non-farm nonresidential properties and multifamily residential properties, as well as 1-4 family investment-purpose real estate loans.
Residential real estate: Residential real estate loans include loans secured by primary or secondary personal residences. Pools of mortgages are occasionally purchased to expand our loan portfolio and provide additional loan income.
Agricultural real estate, Agricultural, Consumer and other: Agricultural real estate loans are loans related to farmland. Agricultural loans are primarily operating lines subject to annual farming revenues including productivity/yield of the agricultural commodities produced. Consumer loans are generally secured by consumer assets but may be unsecured.
The contractual maturity ranges of loans in our loan portfolio and the amount of such loans with predetermined interest rates and floating rates in each maturity range as of March 31, 2026, are summarized in the following table.
Loan Maturity and Sensitivity to Changes in Interest Rates
As of March 31, 2026
One yearor less
After one yearthrough fiveyears
After fiveyears through fifteen years
After fifteen years
363,496
436,452
108,830
58,271
Real Estate:
793,816
1,601,734
408,203
154,510
32,785
107,865
111,592
468,199
111,100
187,080
64,609
68,519
Total real estate
937,701
1,896,679
584,404
691,228
186,258
44,193
6,735
11,867
45,436
47,015
6,876
2,834
1,532,891
2,424,339
706,845
764,200
Loans with a predetermined fixed interest rate
611,585
1,108,518
144,425
276,591
2,141,119
Loans with an adjustable/floating interest rate
921,306
1,315,821
562,420
487,609
3,287,156
The contractual maturity ranges of loans in our loan portfolio and the amount of such loans with predetermined interest rates and floating rates in each maturity range as of December 31, 2025, are summarized in the following table.
As of December 31, 2025
289,631
350,270
112,600
64,384
531,763
1,268,127
325,353
101,105
5,267
11,996
111,555
453,327
74,354
131,536
36,836
36,201
611,384
1,411,659
473,744
590,633
133,092
38,040
5,663
11,680
52,119
44,205
7,021
2,055
1,086,226
1,844,174
599,028
668,752
412,708
653,731
109,432
269,857
1,445,728
673,518
1,190,443
489,596
398,895
2,752,452
60
We categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, historical payment experience, credit documentation, public information, current economic trends, and other factors. Loans are analyzed individually and classified based on credit risk. Consumer loans are considered pass credits unless downgraded due to payment status or reviewed as part of a larger credit relationship.
For additional information, see “NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES” in the Condensed Notes to Interim Consolidated Financial Statements.
Nonperforming Assets
The following table presents information regarding nonperforming assets at the dates indicated.
Non-accrual loans
Accruing loans 90 or more days past due
OREO acquired through foreclosure, net
2,885
3,245
Other repossessed assets
579
Total nonperforming assets
58,341
46,710
Ratios:
Nonperforming assets to total assets
0.76
0.73
Nonperforming assets to total loans plus OREO and repossessed assets
1.07
1.11
Generally, loans are designated as non-accrual when either principal or interest payments are 90 days or more past due based on contractual terms, unless the loan is well secured and in the process of collection. Consumer loans are typically charged off no later than 180 days past due. In all cases, loans are placed on non-accrual, or charged off, at an earlier date if collection of principal or interest is considered doubtful. When a loan is placed on non-accrual status, unpaid interest credited to income earned in the current year is reversed against income and unpaid interest earned in prior years is charged off. Future interest income may be recorded on a cash basis after recovery of principal is reasonably assured. Non-accrual loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
The nonperforming loans at March 31, 2026, consisted of 335 separate credits and 271 separate borrowers. We had 6 nonperforming loan relationships, totaling $26.8 million, with an outstanding balance in excess of $1.0 million as of March 31, 2026.
There are several procedures in place to assist us in maintaining the overall quality of our loan portfolio. We have established underwriting guidelines to be followed by lenders and we also monitor delinquency levels for any negative or adverse trends. In accordance with applicable regulation, appraisals or evaluations are required to independently value real estate and are an important element to consider when underwriting loans secured in part or in whole by real estate. The value of real estate collateral provides additional support to the borrower’s credit capacity. There can be no assurance, however, that our loan portfolio will not become subject to increasing pressures from deteriorating borrower credit due to general economic conditions.
Potential Problem Loans
Potential problem loans consist of loans that are performing in accordance with contractual terms, but for which management has concerns about the borrower’s ability to comply with repayment terms because of the borrower’s potential financial difficulties. Potential problem loans are assigned a grade of special mention or substandard. At March 31, 2026, the Company had $22.0 million in potential problem loans which were not included in either non-accrual or 90 days past due categories, compared to $24.6 million at December 31, 2025.
With respect to potential problem loans, all monitored and under-performing loans are reviewed and evaluated to determine if they are impaired. If we determine that a loan is impaired, then we evaluate the borrower’s overall financial condition to determine the need, if any, for possible write downs or appropriate additions to the allowance for credit losses based on the unlikelihood of full repayment of principal and interest in accordance with the contractual terms or the net realizable value of the pledged collateral.
Allowance for Credit Losses
Please see “Critical Accounting Policies – Allowance for Credit Losses” for additional discussion of our allowance policy. For additional information, see “NOTE 3 – LOANS AND ALLOWANCE FOR CREDIT LOSSES” in the Condensed Notes to Interim Consolidated Financial Statements.
In connection with our review of the loan portfolio, risk elements attributable to particular loan types or categories are considered when assessing the quality of individual loans. Some of the risk elements include the following items.
The following table presents, as of and for the periods indicated, an analysis of the allowance for credit losses and other related data.
For the Quarters Ended,
Commercial Real Estate
Commercial and Industrial
Residential Real Estate
Agricultural Real Estate
Allowance for credit losses (ACL)
Total loans outstanding (1)
Net (charge-offs) recoveries QTD
Average loan balance QTD (1)
2,939,342
Non-accrual loan balance
Loans to total loans outstanding
ACL to total loans
0.8
1.1
1.8
0.1
1.2
Net charge-offs to average loans QTD
(0.1
Non-accrual loans to total loans
0.5
2.6
1.3
0.7
1.0
ACL to non-accrual loans
143.2
94.8
222.1
204.2
251.8
122.5
March 31 2025
1,863,200
762,906
563,954
260,683
94,199
86,686
1,882,018
565,251
3,574,807
7,738
7,593
4,578
2,900
714
722
24,245
51.3
21.0
15.5
7.2
2.4
1.6
2.0
0.4
2.1
(0.6
208.3
178.4
192.8
177.9
49.9
251.1
189.0
Management believes that the allowance for credit losses at March 31, 2026, was adequate to cover current expected credit losses in the loan portfolio as of such date. There can be no assurance, however, that we will not sustain losses in future periods, which could be substantial in relation to the size of the allowance at March 31, 2026.
The allowance for credit losses on loans measured on a collective basis totaled $54.9 million, or 1.0% of the $5.43 billion in loans measured on a collective basis at March 31, 2026, compared to an allowance for credit losses of $46.2 million, or 1.1%, of the $4.1 billion in loans measured on a collective basis at December 31, 2025. The total reserve percentage to total loans was 1.2% at March 31, 2026, and 1.3% at December 31, 2025.
Securities
We use our securities portfolio to provide a source of liquidity, to provide an appropriate return on funds invested, to manage interest rate risk, to meet pledging requirements and to meet regulatory capital requirements. At March 31, 2026, securities represented 14.7% of total assets, decreasing from 16.3% at December 31, 2025.
At the date of purchase, debt securities are classified into one of two categories: held-to-maturity or available-for-sale. We do not purchase securities for trading purposes. At each reporting date, the appropriateness of the classification is reassessed. Investments in debt securities that are classified as held-to-maturity are carried at cost, and adjusted for the amortization of premiums and the accretion of discounts, only if management has the positive intent and ability to hold those securities to maturity. Debt securities that are not classified as held-to-maturity are classified as available-for-sale and are measured at fair value in the financial statements with unrealized gains and losses reported, net of tax, as accumulated comprehensive income or loss until realized. Interest earned on securities is included in total interest and dividend income. Also included in total interest and dividend income are dividends received on stock investments in the Federal Reserve Bank of Kansas City and the FHLB of Topeka. These stock investments are stated at cost.
The following table summarizes the amortized cost and fair value by classification of available-for-sale securities as of the dates shown.
Available-For-Sale Securities
Total available-for-sale securities
The following table summarizes the amortized cost and fair value by classification of Held-to-Maturity securities as of the dates shown.
Held-To-Maturity Securities
Total held-to-maturity securities
At March 31, 2026, and December 31, 2025, we did not own securities of any one issuer (other than the U.S. government and its agencies or sponsored entities) for which aggregate par value exceeded 10% of consolidated stockholders’ equity at the reporting dates noted.
The following tables summarize the contractual maturity of debt securities and their weighted average yields as of March 31, 2026, and December 31, 2025. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. Available-for-sale securities are shown at fair value and held-to-maturity securities are shown at cost, adjusted for the amortization of premiums and the accretion of discounts.
Due in one yearor less
Due after oneyear throughfive years
Due after fiveyears through10 years
Due after 10years
CarryingValue
Yield
12,599
4.41
13,280
4.44
34,721
3.79
4,010
4.58
4.29
55,922
4.95
14,778
5.10
792,367
4.90
4.91
9,768
5.19
11,879
8.93
69,942
7.24
771
6.01
7.23
2,098
4.50
36,143
4.15
39,094
4.34
4.26
State and political subdivisions(1)
1,174
3,851
11,308
3.25
7,253
4.79
3.72
58,263
91,040
5.30
132,171
843,688
4.86
4.97
Held-to-maturity securities:
3,111
5.02
863
4.99
169
3.02
1,111
4.62
4.40
1,974
4.74
4.85
135,451
5.79
845,662
1,130,416
10,112
16,186
29,747
5,503
4.60
3.95
55,875
15,337
5.13
700,931
4.94
4.21
2,326
3.76
18,877
7.89
69,839
5.49
756
5.95
2,402
5.01
37,952
39,851
4.72
908
3,791
3.10
3.22
5,517
4.22
3.46
43,095
102,634
5.33
133,458
751,381
4.92
4.93
3,101
866
3,271
1,977
136,729
753,358
1,035,816
Mortgage-backed securities are securities that have been developed by pooling a number of real estate mortgages which are principally issued by federal agencies such as Ginnie Mae, Fannie Mae, and Freddie Mac. Unlike U.S. Treasury and U.S. government agency securities, which have a lump sum payment at maturity, mortgage-backed securities provide cash flows from regular principal and interest payments and principal prepayments throughout the lives of the securities. Premiums and discounts on mortgage-backed securities are amortized and accreted over the expected life of the security and may be impacted by prepayments. As such, mortgage-backed securities which are purchased at a premium will generally produce decreasing net yields as interest rates drop because homeowners tend to refinance their mortgages, resulting in prepayments and an acceleration of
premium amortization. Securities purchased at a discount will reflect higher net yields in a decreasing interest rate environment, as prepayments result in an acceleration of discount accretion.
The contractual maturity of mortgage-backed securities is not a reliable indicator of their expected lives because borrowers have the right to prepay their obligations at any time. Monthly pay downs on mortgage-backed securities cause the average lives of these securities to be much different than their stated lives. At March 31, 2026, and December 31, 2025, 91.5% and 90.8% of the residential mortgage-backed securities held by us had contractual final maturities of more than ten years, with a weighted average life of 4.8 years and 5.0 years and a modified duration of 3.9 years and 4.1 years.
Goodwill Impairment Assessment
At March 31, 2026, we performed an interim qualitative analysis and concluded there were no indications that goodwill was impaired. For additional information, see “Goodwill” under "Critical Accounting Policies" in the Management's Discussion and Analysis of Financial Condition and Results of Operation.
Our lending and investing activities are primarily funded by deposits. A variety of deposit accounts are offered with a wide range of interest rates and terms including demand, savings, money market, and time deposits. We rely primarily on competitive pricing policies, convenient locations, comprehensive marketing strategy, and personalized service to attract and retain these deposits.
The following table shows our composition of deposits at March 31, 2026, and December 31, 2025.
Composition of Deposits
Percentof Total
Non-interest-bearing demand
20.2
22.3
Interest-bearing demand
1,492,789
23.7
1,268,307
24.7
2,011,909
31.9
1,736,680
33.8
24.2
19.2
Total deposits at March 31, 2026, were $6.30 billion, an increase of $1.16 billion, or 22.6%, compared to total deposits of $5.14 billion at December 31, 2025.
The following tables show deposit acquired in 2026, as of the time of each acquisition.
Frontier Acquisition
150,136
185,050
16.3
249,372
22.0
547,411
48.4
Equity Bank participates in the Insured Cash Sweep (“ICS”) service that allows the Bank to break large non-time deposits into smaller amounts and place them in a network of other ICS banks to ensure FDIC insurance coverage on the entire deposit. These deposits are placed through ICS services but are Equity Bank’s customer relationships that management views as core funding. The Bank also participates in the Certificate of Deposit Account Registry Service (“CDARS”) program. CDARS allows
the bank to break large time deposits into smaller amounts and place them in a network of other CDARS banks to ensure FDIC insurance coverage on the entire deposit. Reciprocal deposits are not considered brokered deposits as long as the aggregate balance is less than the lesser of 20% of total liabilities or $5.0 billion and Equity Bank is well capitalized and well rated. All non-reciprocal deposits and reciprocal deposits in excess of regulatory limits are considered brokered deposits.
The following table lists reciprocal and brokered deposits included in total deposits categorized by type at March 31, 2026, and December 31, 2025.
Reciprocal
645,277
571,989
Non-reciprocal brokered
Total interest-bearing demand
159,413
100,226
50,052
1,605
Total savings and money market
209,465
101,831
103,164
51,691
310,172
70,170
Total time
413,336
121,861
Total reciprocal and brokered deposits
1,268,078
795,681
The following table provides information on the maturity distribution of time deposits of $250 thousand or more as of March 31, 2026, and December 31, 2025.
PercentChange
3 months or less
133,561
136,661
(3,100
(2.3
Over 3 through 6 months
164,450
206,748
(42,298
(20.5
Over 6 through 12 months
172,449
67,260
105,189
156.4
Over 12 months
58,017
69,857
(11,840
(16.9
Total Time Deposits
528,477
480,526
47,951
10.0
Other Borrowed Funds
We utilize borrowings to supplement deposits to fund our lending and investing activities. Short-term borrowings and long-term borrowings include federal funds purchased and retail repurchase agreements, FHLB advances, Federal Reserve Bank borrowings, a bank stock loan, and subordinated debt. For additional information see “NOTE 7 – BORROWINGS” in the Condensed Notes to Interim Consolidated Financial Statement.
Liquidity
The following tables disclose average balances as a percentage of total average assets as of the time periods listed.
For the three months ended
Source of funds
Non-interest-bearing
16.90
17.69
19.28
20.36
26.25
28.14
19.88
13.30
5.26
Subordinated borrowings
1.31
1.87
0.64
0.89
Other liabilities
0.88
Stockholders' equity
12.17
11.62
100.00
Uses of funds
72.49
68.59
14.65
17.98
0.32
1.09
4.20
0.07
0.09
1.86
2.25
Other non-interest-earnings assets
6.41
6.11
Market and public confidence in our financial strength and financial institutions in general will largely determine access to appropriate levels of liquidity. This confidence is significantly dependent on our ability to maintain sound asset quality and appropriate levels of capital reserves.
Liquidity is defined as the ability to meet anticipated customer demands for future funds under credit commitments and deposit withdrawals at a reasonable cost and on a timely basis. We measure our liquidity position by considering both on and off-balance sheet sources of and demands for funds on a daily, weekly, and monthly basis.
Liquidity risk involves the risk of being unable to fund assets with the appropriate duration and rate-based liabilities, as well as the risk of not being able to meet unexpected cash needs. Liquidity planning and management are necessary to ensure the ability to fund operations in a cost-effective manner and to meet current and future potential obligations such as loan commitments, lease obligations, and unexpected deposit outflows. In this process, we focus on both assets and liabilities, and the way they combine to provide adequate liquidity to meet our needs.
During the three months ended March 31, 2026, and 2025, our liquidity needs have primarily been met by core deposits, security and loan maturities, and amortizing security and loan portfolios. Other funding sources include federal funds purchased, brokered certificates of deposit, borrowings from the FHLB, and Federal Reserve Bank borrowings.
Our largest sources of funds are deposits and FHLB borrowings and our largest uses of funds are loan fundings, securities purchases and debt servicing. Average loans were $5.45 billion for the three months ended March 31, 2026, an increase of 38.5% over the December 31, 2025, average balance. Excess deposits are primarily invested in our interest-bearing deposit account with the Federal Reserve Bank of Kansas City, investment securities, federal funds sold or other short-term liquid investments until the funds are needed to fund loan growth. Our securities portfolio has a weighted average life of 4.8 years and a modified duration of 3.9 years at March 31, 2026.
Cash and cash equivalents were $564.2 million at March 31, 2026, a decrease of $43.7 million from the $607.8 million cash and cash equivalents at December 31, 2025. The majority of our liquidity comes from our operations, including net income, supplemented by the repayment of principal on loans and investment securities through payoffs, paydowns and normal amortization. From time to time as conditions warrant, we borrow funds to maintain our liquidity requirement and fund operational needs. We
believe that our daily funding needs can be met through cash provided by operating activities, payments and maturities on loans and investment securities, the core deposit base and FHLB advances and other borrowing relationships.
Off-Balance-Sheet Items
In the normal course of business, we enter into various transactions, which, in accordance with GAAP, are not included in our consolidated balance sheets. We enter into these transactions to meet the financing needs of our customers. These transactions include commitments to extend credit and standby and commercial letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. Our exposure to credit loss is represented by the contractual amounts of these commitments. The same credit policies and procedures are used in making these commitments as for on-balance sheet instruments.
Standby and Performance Letters of Credit: For additional information see “NOTE 12 – COMMITMENTS AND CREDIT RISK” in the Condensed Notes to Interim Consolidated Financial Statement.
Commitments to Extend Credit: For additional information see “NOTE 12 – COMMITMENTS AND CREDIT RISK” in the Condensed Notes to Interim Consolidated Financial Statement.
Capital Resources
Capital management consists of providing equity to support our current and future operations. The federal bank regulators view capital levels as important indicators of an institution’s financial soundness. As a general matter, FDIC-insured depository institutions and their holding companies are required to maintain minimum capital relative to the amount and types of assets they hold. As a financial holding company and a state-chartered-Fed-member bank, the Company and Equity Bank are subject to regulatory capital requirements.
Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. Management believes as of March 31, 2026, and December 31, 2025, the Company and Equity Bank meet all capital adequacy requirements to which they are subject.
Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized; although, these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as are asset growth and acquisitions, and capital restoration plans are required.
Failure to meet capital guidelines could subject the institution to a variety of enforcement remedies by federal bank regulatory agencies, including termination of deposit insurance by the FDIC, restrictions on certain business activities and appointment of the FDIC as conservator or receiver. As of March 31, 2026, the most recent notifications from the federal regulatory agencies categorized Equity Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Equity Bank must maintain minimum Total capital, Tier 1 capital, Common Equity Tier 1 capital, and Tier 1 leverage ratios. For additional information, see “NOTE 9 – REGULATORY MATTERS” in the Condensed Notes to Interim Consolidated Financial Statements. There are no conditions or events since that notification that management believes have changed Equity Bank’s category.
We identify certain financial measures discussed in this Quarterly Report as being “non-GAAP financial measures.” In accordance with SEC’s rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP in our statements of income, balance sheet or statements of cash flows. Non-GAAP financial measures do not include operating and other statistical measures or ratios, or statistical measures calculated using exclusively either financial measures calculated in accordance with GAAP, operating measures or other measures that are not non-GAAP financial measures or both.
The non-GAAP financial measures that we discuss in this Quarterly Report should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the way we calculate the non-GAAP financial measures that we discuss in this Quarterly Report may differ from that of other companies reporting measures with similar names. You should understand how such other banking organizations calculate their financial
measures similar to, or with names like, the non-GAAP financial measures we have discussed in this Quarterly Report when comparing such non-GAAP financial measures.
Tangible Book Value Per Common Share and Tangible Book Value Per Diluted Common Share: Tangible book value is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) tangible common equity as total stockholders’ equity less preferred stock, goodwill, core deposit intangibles (net of accumulated amortization), and other intangible assets (net of accumulated amortization); (b) tangible book value per common share as tangible common equity (as described in clause (a)) divided by shares of common stock outstanding; and (c) tangible book value per diluted common share as tangible common equity (as described in clause (a)) divided by diluted shares of common stock outstanding. For tangible book value, the most directly comparable financial measure calculated in accordance with GAAP is book value.
Management believes that these measures are important to many investors interested in changes from period to period in book value per common share exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing total book value while not increasing our tangible book value.
The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity, tangible book value per common share, and tangible book value per diluted common share and compares these values with book value per common share.
As of the Period Ended
(104,958
(82,101
(77,573
(53,101
(30,536
(21,634
(22,895
(12,908
(13,924
(5,629
(5,703
(5,778
(5,852
(5,926
Tangible common equity
Common shares issued at period end
20,767,023
18,944,987
19,111,084
17,527,191
17,522,994
Diluted common shares outstanding at period end
20,946,924
19,196,160
19,279,741
17,680,489
17,652,110
Book value per common share
Tangible book value per common share
Tangible book value per diluted common share
Tangible Common Equity to Tangible Assets: Tangible common equity to tangible assets is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate (a) tangible common equity as total stockholders’ equity less preferred stock, goodwill, core deposit intangibles (net of accumulated amortization), and other intangible assets (net of accumulated amortization); (b) tangible assets as total assets less goodwill, core deposit intangibles (net of accumulated amortization), and other intangible assets (net of accumulated amortization); and (c) tangible common equity to tangible assets as tangible common equity (as described in clause (a)) divided by tangible assets (as described in clause (b)). For tangible common equity to tangible assets, the most directly comparable financial measure calculated in accordance with GAAP is total stockholders’ equity to total assets.
Management believes that this measure is important to many investors in the marketplace interested in the relative changes from period to period in common equity and total assets, each exclusive of changes in intangible assets. Goodwill and other intangible assets have the effect of increasing both total stockholders’ equity and total assets while not increasing tangible common equity or tangible assets.
The following table reconciles, as of the dates set forth below, total stockholders’ equity to tangible common equity and total assets to tangible assets.
Tangible assets
7,526,247
6,263,734
6,259,385
5,301,976
5,373,149
Equity to assets
Tangible common equity to tangible assets
Core Return on Average 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: (a) average tangible common equity as total average stockholders’ equity less average intangible assets and preferred stock; (b) core net income allocable to common stockholders as net income allocable to common stockholders less net gain on acquisition, less gain(loss) on securities transactions, plus loss on debt extinguishment, plus merger expenses, plus BOLI tax expense, plus goodwill impairment, net of actual tax effect, plus amortization of intangible assets less estimated tax effect on adjustments (c) core return on average equity as core net income allocable to common stockholders (as described in clause (b)) 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.
Return on Average Tangible Common Equity: Return on average tangible common equity is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) average tangible common equity as total average stockholders’ equity less average intangible assets and preferred stock; (b) core net income allocable to common stockholders as net income allocable to common stockholders plus goodwill impairment, net of actual tax effect, plus amortization of intangible assets less estimated tax effect on amortization of intangible assets (c) return on average tangible common equity as core net income allocable to common stockholders (as described in clause (b)) divided by average tangible common equity (as described in clause (a)). For return on average tangible common equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity.
Management believes that this measure is important to many investors in the marketplace because it measures the return on equity, exclusive of the effects of intangible assets on earnings and capital. Goodwill and other intangible assets have the effect of increasing average stockholders’ equity and, through amortization, decreasing net income allocable to common stockholders while not increasing average tangible common equity or decreasing core net income allocable to common stockholders.
71
The following table reconciles, as of the dates set forth below, total average stockholders’ equity to average equity and net income allocable to common stockholders to core net income allocable to common stockholders.
For the Three Months Ended
Total average stockholders’ equity
725,651
715,319
627,103
Average intangible assets
(141,742
(108,779
(95,046
(72,406
(72,389
Average tangible common equity
700,096
616,872
620,273
554,697
533,528
1,390
1,312
1,145
Net gain on acquisition
Net (gain) loss on securities transactions
53,352
Day 2 Merger provision
6,099
(2,937
(571
(14,082
(252
Core net income allocable to common stockholders
28,017
24,230
23,310
17,515
15,987
Return on total average stockholders’ equity (ROAE) annualized
Core return on average equity
Return on average tangible common equity (ROATCE) annualized
Core return on average tangible common equity (CROATCE) annualized
Core income calculations: 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 Net Income and Earnings Per Share: Core net income and Core earnings per share are non-GAAP financial measures generally used to disclose core net income from the Company's operations and earnings per share. We calculated this by taking GAAP net income less non-core impacts to net income to arrive at core net income and core diluted earnings per share. These financial measures are used by financial statement users to evaluate the core financial performance of the Company. Management believes that these measures are important to many investors who are interested in changes from period to period in the Company's financial performance and quality of earnings.
72
The following table reconciles as of the dates set forth below, core net income and earnings per share and compares them to GAAP net income and earnings per share.
September 30,
June 30,
Tax effect of adjustments
(432
(292
(276
Adjusted non-core items
18,590
23,182
(28,627
16,169
15,945
Net gain on acquisitions
Gain (loss) from securities transactions
Merger expense
(2,505
(279
(13,806
(358
Adjusted operating net income
GAAP earnings (loss) per diluted share
Core earnings (loss) per diluted share
1.22
Total average assets
6,141,284
6,085,064
5,206,950
Total average stockholder's equity
Weighted average diluted common shares
21,262,009
19,235,412
19,129,726
17,651,298
17,666,834
Return on Average Assets (ROAA) annualized
-1.93
Core Operating ROAA annualized
Efficiency Ratio: The efficiency ratio is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate the efficiency ratio by dividing non-interest expense, excluding goodwill impairment, merger expenses and loss on debt extinguishment, by the sum of net interest income and non-interest income, excluding net gains on the sale of available-for-sale securities and other securities transactions, and the net gain on acquisition. The GAAP-based efficiency ratio is non-interest expense less goodwill impairment, divided by net interest income plus non-interest income.
In management’s judgment, the adjustments made to non-interest expense and non-interest income allow investors and analysts to better assess operating expenses in relation to operating revenue by removing merger expenses, loss on debt extinguishment, net gains on the sale of available-for-sale securities and other securities transactions, and the net gain on acquisition.
The following table reconciles, as of the dates set forth below, the efficiency ratio to the GAAP-based efficiency ratio.
June 30, 2025
46,587
49,082
40,001
(5,725
(1,481
(6,163
(1,361
Amortization of intangibles assets
(2,056
(1,390
(1,312
(1,145
(1,144
47,188
43,716
41,607
37,140
37,840
9,532
(44,479
8,589
Non-interest income, excluding net gain (loss) from securities transactions and net gain on acquisition and branch sales
Net interest income plus non-interest income, excluding net gain on acquisition and branch sales and net gain (loss) from securities transactions
83,259
72,880
71,358
58,379
60,610
Total Average Assets
Core non-interest expense / Average assets
Item 3: Quantitative and Qualitative Disclosures about Market Risk
Our asset-liability policy provides guidelines for effective funds management and management has established a measurement system for monitoring net interest rate sensitivity position within established guidelines.
As a financial institution, the primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on most assets and liabilities and the market value of all interest-earning assets and interest-bearing liabilities, other than those which have a short-term maturity. Interest rate risk is the potential of economic gains or losses due to future interest rate changes. These changes can be reflected in future net interest income and/or fair market values. The objective is to measure the effect on net interest income (“NII”) and economic value of equity (“EVE”) and to adjust the balance sheet to minimize the inherent risk while at the same time maximizing income.
We manage interest rate exposure by structuring the balance sheet in the ordinary course of business. We have the ability to enter into instruments such as leveraged derivatives, interest rate swaps, financial options, financial futures contracts or forward delivery contracts for the purpose of reducing interest rate risk. Currently, we do not have a material exposure to these instruments. We also have the ability to enter into interest rate swaps as an accommodation to our customers in connection with an interest rate swap program. Based upon the nature of our operations, we are not subject to foreign exchange or commodity price risk. We do not own any trading assets.
Our exposure to interest rate risk is managed by the Asset Liability Committee (“ALCO”), which is composed of certain members of senior management, in accordance with policies approved by the Board of Directors. ALCO formulates strategies based on appropriate levels of interest rate risk. In determining the appropriate level of interest rate risk, ALCO considers the impact on earnings and capital of the current outlook on interest rates, potential changes in interest rates, regional economies,
liquidity, business strategies and other factors. ALCO meets monthly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and market values of assets and liabilities, unrealized gains and losses, securities purchased and sale activities, commitments to originate loans and the maturities of investment securities and borrowings. Additionally, the ALCO reviews liquidity, projected cash flows, maturities of deposits and consumer and commercial deposit activity.
ALCO uses a simulation analysis to monitor and manage the pricing and maturity of assets and liabilities in order to diminish the potential adverse impact that changes in interest rates could have on net interest income. The simulation tests the sensitivity of NII and EVE. Contractual maturities and repricing opportunities of loans are incorporated in the simulation model as are prepayment assumptions, maturity data and call options within the investment securities portfolio. Assumptions based on past experience are incorporated into the model for non-maturity deposit accounts. All assumptions are as of the base period without consideration of preceding market rate changes and any lag in impact to NII. The depicted expectations are management's estimate exclusive of any non-contractual lagging impacts that have not yet been realized in income from preceding changes to interest rates. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure the future NII and EVE. Actual results will differ from the model’s simulated results due to timing, magnitude and frequency of interest rate changes as well as changes in market conditions and the application and timing of various management strategies.
The change in the impact of net interest income from the base case for March 31, 2026, and December 31, 2025, was primarily driven by the rate and mix of variable and fixed rate financial instruments, the underlying duration of the financial instruments and the level of response to changes in the interest rate environment.
The continuing positive impact to net interest income in the rates up interest rate shock scenarios is due to the lower proportion of fixed rate investments and fixed rate loans compared to the interest earning cash balances and adjustable-rate loans. The offsetting negative impact in the rates up interest rate shocks and relatively less positive total impact compared to December 31, 2025 are mainly caused by the proportional increase in fixed rate loans, short-term time deposits, and beta-sensitive non-maturity deposits (i.e. money market deposits). In the rates down interest rate shock scenarios, the main drivers of the negative impact on net interest income are the downward pricing of variable rate loans receivable, interest earning cash, and slower repricing from longer term borrowings. This is partially offset by the faster downward repricing of short-term time deposits and beta-sensitive non-maturity deposits and slower downward repricing of fixed rate loans. While improved year-to-date, these factors result in the overall negative impact to net interest income in the down rate interest rate shock scenarios.
The change in the economic value of equity from the base case for March 31, 2026, is due to us being in a liability sensitive position and the level of convexity in our prepayable assets. Generally, with a liability sensitive position, as interest rates increase, the value of your assets decrease faster than the value of liabilities and, as interest rates decrease, the value of your assets increases at a faster rate than liabilities. First, the mix of interest-bearing deposit and non-interest-bearing deposits impact the level of deposit decay and the resulting benefit of discounting from the non-interest-bearing deposits. Non-interest-bearing and other low-beta interest-bearing deposits were proportionally lower, while beta sensitive deposits were proportionally higher year-to-date, negatively impacting up and down rate scenario results. Second, due to the level of convexity in our fixed-rate prepayable assets, we do not experience a similar change in the value of assets in a rates down interest rate shock scenario. As rates decrease, the level of modeled prepayments increases for fixed rate prepayable assets, and as rates increase, the level of modeled prepayments decreases. In rates down, the EVE values have a more positive impact year-to-date and the rates up scenarios have a more negative impact, mainly due to the proportionally higher amount of longer term fixed-rate assets resulting in slower asset repricing overall, despite the asymmetric impact of their convexity. The significant negative impact in the 300 bps down rate scenario is driven by a significant level of liabilities hitting their implied cost floors of near 0% due to their relatively low current cost, compared to the higher yielding floating rate assets that can still absorb rate cuts as rates fall.
Management utilizes static balance sheet rate shocks to estimate the potential impact on various rate scenarios. This analysis estimates a percentage of change in the metric from the stable rate base scenario versus alternative scenarios of rising and falling market interest rates by instantaneously shocking a static balance sheet. The following table summarizes the simulated immediate change in net interest income for twelve months as of the dates indicated.
75
Market Risk
Impact on Net Interest Income
Change in prevailing interest rates
+300 basis points
11.3
+200 basis points
6.3
7.5
+100 basis points
3.0
3.6
0 basis points
-100 basis points
(1.4
-200 basis points
(2.9
-300 basis points
(3.2
(5.3
The following table summarizes the simulated immediate impact on economic value of equity as of the dates indicated.
Impact on Economic Valueof Equity
(10.5
(8.0
(7.1
(3.9
(2.8
(2.0
(3.6
(6.8
Item 4: Controls and Procedures
Evaluation of disclosure controls and procedures
An evaluation of the effectiveness of the design and operation of disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q was performed under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and management was required to apply judgment in evaluating its controls and procedures. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and are effective to provide reasonable assurance that such information is recorded, processed, summarized and reported within the time periods specified by the SEC rules and forms.
Changes in internal control over financial reporting
There were no changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the period covered by this Quarterly Report on Form 10-Q that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II—OTHER INFORMATION
Item 1: Legal Proceedings
From time to time, we are a party to various litigation matters incidental to the conduct of our business. See “NOTE 13 – LEGAL MATTERS” of the Condensed Notes to Interim Consolidated Financial Statements under Item 1 to this Quarterly report for a complete discussion of litigation matters.
Item 1A: Risk Factors
There have been no material changes in the Company’s risk factors previously disclosed in our Annual Report on Form 10-K filed with the SEC on March 6, 2026.
Item 2: Unregistered Sales of Equity Securities and Use of Proceeds
Repurchase of Common Stock
On September 11, 2025, the Board of Directors of Equity Bancshares authorized the repurchase of up to 1,000,000 shares of outstanding common stock beginning on October 1, 2025 and concluding on September 30, 2026. The repurchase program does not obligate the Company to acquire a specific dollar amount or number of shares, and may be extended. modified or discontinued at any time without notice. Non-objection from the Federal Reserve Bank of Kansas City related to this repurchase plan was received on September 23, 2025. During the three months ended March 31, 2026, the Company repurchased 500,000 shares of the Company's outstanding common stock at an average price of $44.77 per share. At March 31, 2026, there are 327,662 shares remaining under the program.
Date
Total Number of Shares Purchased
Average Price Paid per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
January 1, 2026 through January 31, 2026
41,364
44.89
786,298
February 1, 2026 through February 28, 2026
135,837
45.68
650,461
March 1, 2026 through March 31, 2026
322,799
44.37
327,662
500,000
44.77
Item 3: Defaults Upon Senior Securities
None.
Item 4: Mine Safety Disclosures
Not applicable.
Item 5: Other Information
During the three months ended March 31, 2026, none of the Company's directors or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such defined in Item 408 of Regulation S-K of the Securities Act of 1933).
Item 6: Exhibits
Exhibit
No.
Description
10.1
Ninth Amendment to Loan and Security Agreement dated February 10, 2026, by and between Equity Bancshares, Inc. and ServisFirst Bank (incorporated by reference to Exhibit 10.1 to Equity Bancshares, Inc.'s Current Report on Form 8-K filed with the SEC on February 17, 2026).
31.1*
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
101.SCH*
Inline XBRL Taxonomy Extension Schema Document.
104*
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101).
* Filed herewith.
** These exhibits are furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
May 8, 2026
By:
/s/ Brad S. Elliott
Brad S. Elliott
Chairman and Chief Executive Officer
/s/ Chris M. Navratil
Chris M. Navratil
Executive Vice President and Chief Financial Officer