Equity Bancshares, Inc. Third Quarter Results Highlighted by Organic Loan Growth and Announced Merger with Lincoln Bancorp

EPS of $1.29 and Core EPS of $1.40 Reflects Franchise Earning PowerWICHITA, Kan.--(BUSINESS WIRE)--Equity Bancshares, Inc. (NYSE: EQBK) (“Equity”, “the Company,” “we,” “us,” “our”), the Wichita-based holding company of Equity Bank, reported net income of $26.8 million or $1.29 per diluted share for the quarter ended September 30, 2026. Core earnings per diluted share for the quarter was $1.40. “This quarter our company continued to execute at an exciting level. Earnings were strong, production reached all-time highs and loans grew organically. We are putting teams in place with an aligned mission to deepen and expand customer relationships while providing exceptional service to the communities we serve. The results for the quarter reflect that mission,” said Brad S. Elliott, Chairman and CEO of Equity Bancshares. “As our teams realized positive operating results in our current footprint, we announced our merger with Lincoln Bancorp, which will add the incredible team members, growing communities and exceptional customers it has been cultivating for 124 years. The approval process is progressing as planned and we look forward to all our teams will accomplish together in 2027 and beyond,” Mr. Elliott continued. Notable Items: Loans ended the period at $5.4 billion, up $39.2 million or an annualized rate of 2.9%. Legacy markets, excluding those acquired through the Frontier and NBC acquisitions, grew at an annualized rate of 11.9%. Loan production for the period was $379.3 million, up 20.3% quarter over quarter. Net interest income was $72.8 million, down $1.0 million quarter over quarter. Growth in interest income of $1.1 million was outpaced by growth in interest expense for the period as deposit costs increased. Year-over-year net interest income was up $10.4 million, or 16.6%. Loan purchase accounting accretion was $3.3 million in the quarter. Efficiency ratio for the period was 54.0% compared to 53.4% in the previous period. Non-interest expense, adjusted for merger expenses and intangible amortization, as a percentage of average assets improved 1 basis point quarter over quarter to 2.42%. Return on average equity for the quarter was 12.7%, compared to 12.9% in the previous quarter. Return on average tangible common equity ("ROATCE") was 16.1% compared to 16.6% in the previous quarter. Book value per share was $39.59 compared to $40.22 in the previous period and tangible book value per share was $32.93 compared to $33.45 in the previous period. Exclusive of Accumulated Other Comprehensive Income (“AOCI”) book value per share and tangible book value per share increased $1.08 and $1.19, respectively, in the period. Tangible common equity to tangible common assets closed the quarter at 9.1%, up 3 basis points. During the quarter, the Company realized net charge-offs of $2.1 million. The allowance for credit losses (“ACL”) closed the quarter at 1.18% of outstanding balances, while ACL plus purchase discounts on loans closed the quarter at 1.65%. As of the end of the period, the ACL was sufficient to cover 7.7 years of current period annualized losses. The Company announced a 22% increase in our quarterly dividend to $0.22 on outstanding common shares as of September 30, 2026. Year to date the Company has repurchased 711,369 shares at a weighted average cost of $44.84. As previously announced our repurchase authorization was re-established in September for a total of 1,000,000 shares. Financial Results for the Quarter Ended September 30, 2026 Net income was $26.8 million, or $1.29 per diluted share, as compared to $26.4 million, or $1.27 per diluted share in the prior quarter. Core net income was $29.1 million or $1.40 per diluted share, demonstrating the underlying earnings power of the franchise. The drivers of the current period results are discussed in detail in the following sections. Net Interest Income Net interest income was $72.8 million for the period, as compared to $73.9 million in the previous quarter. Net interest margin was 4.20%. The decline in net interest income is primarily attributable to an expanding cost of funds and declining yield on earning assets. During the quarter, average earning assets increased $78.0 million driven by investment balances funded by borrowings further driving decline in margin. Period-end loan balances are $50.4 million higher than average balances during the period. This compositional shift in average earning assets coupled with the full period impact of the FOMC’s decision to raise interest rates in September, is expected to offset deposit pricing competition and yield a return to previous margin expectations of 4.25-4.35% for the fourth quarter, absent the impact of Lincoln. Provision for Credit Losses During the quarter, the Company recognized a provision for credit losses of $1.7 million, up $353 thousand from the previous quarter. Net charge-offs were $2.1 million, or an annualized 15 basis points of average loans. At quarter end, ACL to gross loans held for investment was 1.18% and ACL plus purchase discounts was 1.65%. ACL levels were sufficient to cover 7.7 years of current period annualized charge-offs as of the end of the period. The Company continues to estimate the allowance with assumptions reflecting slower prepayment rates and continued disruption from trade policy, elevated inflation, and monetary policy pressures. Non-Interest Income Total non-interest income was $10.9 million, up $2.8 million from the prior quarter. Following adjustment for one-time items in the previous quarter, non-interest income increased by $0.6 million during the period. Period results were driven by growth in service charges and fees, treasury services and debit and credit card income along with expansion in trust and wealth management revenue. Year-over-year non-interest income, exclusive of gains or loss on security sales has increased $2.0 million, or 22.8%. For the fourth quarter, exclusive of the impact of Lincoln, we expect non-interest income to be between $10.0 and $11.0 million. Non-Interest Expense Total non-interest expense was $48.1 million as compared to $46.9 million for the prior quarter. Excluding merger expenses in both periods, non-interest expense was $47.2 million versus $46.8 million. GAAP non-interest expense to average assets was effectively flat during the period at 2.58%, down from 3.20% in the same period of the prior year. The efficiency ratio for the period was 54.0%. Non-interest expense for the fourth quarter, exclusive of the impact of Lincoln, is expected in the range of $47.0 to $48.0 million. Income Tax Expense At September 30, 2026, the effective tax rate for the quarter was 21.2% as compared to 21.6% for the quarter ended June 30, 2026. The decrease in the effective tax rate was primarily attributable to tax benefits from an investment in a new tax credit structure, non-taxable life insurance proceeds, and share-based compensation activity, partially offset by federal provision-to-return adjustments and non-deductible transaction costs. The year-to-date tax rate is 22.0%. Loans, Total Assets and Funding Loans held for investment were $5.4 billion at period end, increasing $39.2 million during the quarter, an annualized increase of 2.9%. Annualized loan growth within non-acquired markets for the period was 11.9% outpacing the moderating declines in the acquired markets. Total assets closed the quarter at $7.6 billion, a decrease of $134.5 million which is primarily attributable to cash and cash equivalents. Total deposit balances closed the quarter at $6.2 billion, down $136.4 million as compared to the previous period. The decline is attributable to rate sensitive time and municipal deposit accounts, as well as seasonal outflows for a few large customers. Asset Quality Nonperforming assets were $75.4 million, or 0.99% of total assets, compared to $66.3 million or 0.86% at prior quarter end. Classified assets to regulatory capital improved 140 basis points in the period, closing the quarter at 10.42%. The Company continues to actively manage credit quality across all markets. Capital Book capital decreased $11.3 million quarter over quarter to $816.0 million. Tangible book value per share closed at $32.93, down from $33.45 at prior quarter end. Positive earnings performance net of dividends was offset by an increasing AOCI position as market interest rates moved against our investment portfolio. Exclusive of AOCI, book value and tangible book value per share closed the quarter at $41.49 and $34.83, respectively. Tangible common equity to tangible assets inclusive and exclusive of AOCI closed the quarter at 9.10% and 9.58%, respectively. CET1 capital was 12.15%, total risk-based capital was 14.94%, and the leverage ratio was 10.18%. The Company has repurchased 711,369 shares year to date at a weighted average price of $44.84 per share. The dividend payout ratio year to date was 17.3%, within the Company's 10 to 20% target range. Non-GAAP Financial Measures In addition to evaluating the Company’s results of operations in accordance with accounting principles generally accepted in the United States of America (“GAAP”), management periodically supplements this evaluation with an analysis of certain non-GAAP financial measures that are intended to provide the reader with additional perspectives on operating results, financial condition and performance trends, while facilitating comparisons with the performance of other financial institutions. Non-GAAP financial measures are not a substitute for GAAP measures, rather, they should be read and used in conjunction with the Company’s GAAP financial information. The efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. In other words, for every dollar of total revenue recognized, how much of that dollar is expended. To improve the comparability of the ratio to our peers, non-core items are excluded. To improve transparency and acknowledging that banks are not consistent in their definition of the efficiency ratio, we include our calculation of this non-GAAP measure. Core net income is a non-GAAP financial measure that management uses to evaluate the Company’s operating performance across periods. We calculate it by adjusting net income allocable to common stockholders, the most directly comparable GAAP measure, to exclude, net of tax, gains and losses on securities transactions, merger-related costs and provisions, and amortization of intangible assets. Management believes core net income, and the per share and return measures derived from it, give investors a clearer view of results from ongoing operations and make comparisons with other financial institutions easier. The aggregate income tax effect of the adjustments is calculated using the statutory federal rate of 21% and shown in the reconciliation in Table 8. Core return on average assets and core return on average equity are non-GAAP financial measures. We calculate core return on average assets by dividing annualized core net income by average total assets. We calculate core return on average equity by dividing annualized core net income by average stockholders’ equity, adjusted for the average effect of the core adjustments on equity. The most directly comparable GAAP measures are return on average assets and return on average equity, respectively. Management uses these measures to evaluate how effectively the Company generates earnings from its asset base and equity capital, excluding the items described above, and believes they help investors assess performance across periods and relative to other financial institutions. Reconciliations are included in Table 8. Core earnings per share is a non-GAAP financial measure we calculate by taking core income divided by the applicable share count. This financial measure is used by financial statement users to evaluate the core financial performance of the Company. Tangible common equity and related measures are non-GAAP financial measures that exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These financial measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally. Return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently the Company is deploying its common equity. Companies that are able to demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors. The Company believes that disclosing these non-GAAP financial measures is both useful internally and is expected by our investors and analysts in order to understand the overall performance of the Company. Other companies may calculate and define their non-GAAP financial measures and supplemental data differently. A reconciliation of GAAP financial measures to non-GAAP measures and other performance ratios, as adjusted, are included in Table 8 in the following press release tables. Conference Call and Webcast Equity's Chairman and Chief Executive Officer, Brad Elliott, Chief Executive Officer of Equity Bank, Rick Sems, and Chief Financial Officer, Chris Navratil, will hold a conference call and webcast on October 15, 2026 at 9:00 a.m. Central Time to discuss the Company's financial results. Those wishing to participate in the conference call should call the applicable number below and reference the Access Code below. United States (Toll-Free): +1 833-461-5787 Global Dial-In NumbersAccess Code: 216 780 149 To eliminate wait times, conference call participants may pre-register using this registration link. After registering, a confirmation with access details will be sent via email. A replay of the call and webcast will be available two hours following the close of the call until October 31, 2026, accessible at investor.equitybank.com. Webcast URL: https://events.q4inc.com/attendee/216780149 About Equity Bancshares, Inc. Equity Bancshares, Inc. is a Wichita-based bank holding company. Equity Bank serves customers in Kansas, Missouri, Oklahoma, Arkansas, Nebraska, and Iowa, with total assets of $7.6 billion as of September 30, 2026. More information is available at equitybank.com. Additional Information and Where to Find It In connection with the proposed transaction with Lincoln, Equity filed with the SEC a registration statement on Form S-4 to register the shares of Equity’s Class A common stock to be issued to the shareholders of Lincoln. The registration statement includes a proxy statement/prospectus, which will be sent to the shareholders of Lincoln seeking their approval of the proposed transaction. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT EQUITY, LINCOLN AND THE PROPOSED TRANSACTION. The documents filed by Equity with the SEC may be obtained free of charge at Equity’s investor relations website at investor.equitybank.com or at the SEC’s website at www.sec.gov. Alternatively, these documents, when available, can be obtained free of charge from Equity upon written request to Equity Bancshares, Inc., Attn: Investor Relations, 7701 East Kellogg Drive, Suite 300, Wichita, Kansas 67207 or by calling (316) 612-6000. No Offer or Solicitation This communication is for informational purposes only and is not intended to and does not constitute an offer to subscribe for, buy or sell, or the solicitation of an offer to subscribe for, buy or sell, or an invitation to subscribe for, buy or sell any securities or a solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, invitation, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, and otherwise in accordance with applicable law. Special Note Concerning Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect the current views of Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “positioned,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about Equity’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond Equity’s control. Accordingly, Equity cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although Equity believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from Equity’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; the possibility that the forecasted benefits related to the competed transaction with Frontier Bank (“Frontier”) may not materialize as expected; the possibility that the expected benefits related to the proposed transaction with Lincoln Bancorp (“Lincoln”) may not materialize as expected; and the ability to successfully implement integration strategies or to achieve expected synergies and operating efficiencies within the expected time-frames or at all; and similar variables. The foregoing list of factors is not exhaustive. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Equity’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 6, 2026, as amended, and any updates to those risk factors set forth in Equity’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Equity’s underlying assumptions prove to be incorrect, actual results may differ materially from what Equity anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Equity does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. New risks and uncertainties arise from time to time and it is not possible for us to predict those events or how they may affect us. In addition, Equity cannot assess the impact of each factor on Equity’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Equity or persons acting on Equity’s behalf may issue. Unaudited Financial Tables Table 1. Consolidated Statements of Income Table 2. Quarterly Consolidated Statements of Income Table 3. Consolidated Balance Sheets Table 4. Selected Financial Highlights Table 5. Year-To-Date Net Interest Income Analysis Table 6. Quarter-To-Date Net Interest Income Analysis Table 7. Quarter-Over-Quarter Net Interest Income Analysis Table 8. Non-GAAP Financial Measures TABLE 1. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollars in thousands, except per share data) Three Months Ended September 30, Nine Months ended September 30, 2026 2025 2026 2025 Interest and dividend income Loans, including fees $ 91,277 $ 76,911 $ 273,316 $ 202,776 Securities, taxable 15,575 9,416 44,112 27,351 Securities, nontaxable 190 307 619 1,042 Federal funds sold and other 1,924 4,464 6,767 8,800 Total interest and dividend income 108,966 91,098 324,814 239,969 Interest expense Deposits 31,514 24,990 92,135 64,457 Federal funds purchased and retail repurchase agreements 231 263 631 730 Federal Home Loan Bank advances 2,556 1,741 6,228 6,881 Bank stock loan — — 4 — Subordinated debt 1,824 1,619 5,439 5,322 Total interest expense 36,125 28,613 104,437 77,390 Net interest income 72,841 62,485 220,377 162,579 Provision (reversal) for credit losses 1,657 6,228 8,916 8,969 Net interest income after provision (reversal) for credit losses 71,184 56,257 211,461 153,610 Non-interest income Service charges and fees 2,517 2,522 7,424 6,763 Debit card income 3,442 2,953 9,950 8,509 Mortgage banking 544 62 1,481 380 Increase in value of bank-owned life insurance 1,370 1,393 4,391 6,307 Net gains (losses) from securities transactions 10 (53,352 ) (1,311 ) (53,328 ) Other 3,021 1,943 6,514 5,809 Total non-interest income 10,904 (44,479 ) 28,449 (25,560 ) Non-interest expense Salaries and employee benefits 24,034 22,773 74,883 62,462 Net occupancy and equipment 4,979 4,317 14,392 11,474 Data processing 5,466 4,887 16,044 15,028 Professional fees 1,712 1,670 4,880 4,558 Advertising and business development 1,470 1,305 4,683 3,857 Telecommunications 646 630 1,940 1,805 FDIC insurance 675 653 2,605 1,747 Courier and postage 530 744 1,693 2,377 Free nationwide ATM cost 604 582 1,765 1,642 Amortization of core deposit intangibles 1,812 1,182 5,980 3,243 Loan expense 165 330 1,209 740 Other real estate owned and repossessed assets, net 374 797 500 1,001 Loss on debt extinguishment — — — 1,361 Merger expenses 967 6,163 6,825 6,584 Other 4,680 3,049 12,569 10,254 Total non-interest expense 48,114 49,082 149,968 128,133 Income (loss) before income tax 33,974 (37,304 ) 89,942 (83 ) Provision for income taxes (benefit) 7,200 (7,641 ) 19,763 (725 ) Net income (loss) and net income (loss) allocable to common stockholders $ 26,774 $ (29,663 ) $ 70,179 $ 642 Basic earnings (loss) per share $ 1.30 $ (1.55 ) $ 3.38 $ 0.04 Diluted earnings (loss) per share $ 1.29 $ (1.55 ) $ 3.35 $ 0.04 Weighted average common shares 20,593,162 19,129,726 20,750,044 18,051,688 Weighted average diluted common shares 20,802,722 19,129,726 20,935,760 18,201,716 Contacts Investor Contact:Chris M. Navratil EVP, Chief Financial Officer Equity Bancshares, Inc. (316) 612-6014 cnavratil@equitybank.com Media Contact:Laurel Cline Chief Marketing Officer Equity Bancshares, Inc. (316) 858-3180 lcline@equitybank.com Read full story here

Equity Bancshares, Inc. Third Quarter Results Highlighted by Organic Loan Growth and Announced Merger with Lincoln Bancorp

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