Equity Bancshares, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported net income of $26.8 million ($1.29 per diluted share) for the quarter ended September 30, 2026, compared to $26.4 million ($1.27 per diluted share) in the prior quarter.
• Core net income was $29.1 million ($1.40 per diluted share).
• Net interest income was $72.8 million, down $1.0 million quarter-over-quarter but up $10.4 million (16.6%) year-over-year.
• Net interest margin was 4.20%.
• Non-interest income was $10.9 million, up $2.8 million from the prior quarter.
• Non-interest expense was $48.1 million, up from $46.9 million in the prior quarter.
• Efficiency ratio was 54.0%, compared to 53.4% in the previous period.
• Return on average equity (ROAE) was 12.7%, down from 12.9% in the prior quarter.
• Return on average tangible common equity (ROATCE) was 16.1%, down from 16.6% in the prior quarter.
• Provision for credit losses was $1.7 million, up $353 thousand from the prior quarter.
• Net charge-offs were $2.1 million.
• Allowance for credit losses (ACL) was $63.978 million, representing 1.18% of outstanding loan balances.
• Total assets closed at $7.6 billion, a decrease of $134.5 million from the prior period.
• Total deposits were $6.2 billion, down $136.4 million from the prior period.
• Book value per share was $39.59, down from $40.22 in the prior period.
• Tangible book value per share was $32.93, down from $33.45 in the prior period.

Guidance and Future Outlook

• Net interest margin is expected to return to previous expectations of 4.25-4.35% for the fourth quarter, absent the impact of the Lincoln merger.
• Non-interest income for the fourth quarter is expected to be between $10.0 million and $11.0 million, exclusive of the impact of Lincoln.
• Non-interest expense for the fourth quarter, exclusive of the impact of Lincoln, is expected to be in the range of $47.0 million to $48.0 million.
• Management expects to realize benefits from the merger with Lincoln Bancorp in 2027 and beyond.

Business Segments and Product Lines

• Loans held for investment ended the period at $5.4 billion, an increase of $39.2 million (2.9% annualized rate).
• Loan production for the period was $379.3 million, up 20.3% quarter-over-quarter.
• Legacy markets (excluding acquired markets from Frontier and NBC) grew at an annualized rate of 11.9%.
• Non-interest income growth was driven by service charges and fees, treasury services, debit and credit card income, and expansion in trust and wealth management revenue.

Market and Competitive Landscape

• Loan purchase accounting accretion was $3.3 million in the quarter.
• The company noted that growth in interest income was outpaced by growth in interest expense due to increased deposit costs.
• The company serves customers in Kansas, Missouri, Oklahoma, Arkansas, Nebraska, and Iowa.

Risks and Challenges

• Net interest income was negatively impacted by an expanding cost of funds and declining yield on earning assets.
• Total assets decreased primarily due to a reduction in cash and cash equivalents.
• Total deposits declined due to rate-sensitive time and municipal deposit accounts, as well as seasonal outflows for a few large customers.
• Nonperforming assets increased to $75.4 million (0.99% of total assets) from $66.3 million (0.86%) at the prior quarter end.
• Forward-looking statements are subject to risks including interest rate policies, trade policies, inflation, and the potential failure to realize expected merger benefits or synergies.

Management Commentary and Tone

• Chairman and CEO Brad S. Elliott stated the company continued to execute at an "exciting level" with strong earnings, all-time high production, and organic loan growth.
• Management highlighted the approval process for the merger with Lincoln Bancorp is progressing as planned.
• The tone emphasized deepening customer relationships and providing exceptional service to communities.

Other Key Points

• Announced a 22% increase in the quarterly dividend to $0.22 per share.
• Year-to-date, the company repurchased 711,369 shares at a weighted average cost of $44.84.
• The repurchase authorization was re-established in September for a total of 1,000,000 shares.
• The company announced a merger with Lincoln Bancorp, which has been cultivating customers for 124 years.
• The effective tax rate for the quarter was 21.2%, down from 21.6% in the prior quarter.
• Tangible common equity to tangible common assets closed the quarter at 9.1%, up 3 basis points.
• CET1 capital was 12.15%, total risk-based capital was 14.94%, and the leverage ratio was 10.18%.