SEGMENT REPORTING

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SEGMENT REPORTING

NOTE 15 – 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 six months ended June 30, 2024, and June 30, 2023. 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.

				Unallocated Holding
				Company
	Equity Bank			Amounts			Eliminations				Total
Six Months ended June 30, 2024
Interest and dividend income	$	146,549		$	350		$	—			$	146,899
Interest expense		52,397			3,844			—				56,241
Net interest income		94,152			(3,494	)		—				90,658
Provision (reversal) for credit losses		1,265			—			—				1,265
Net interest income after provision (reversal) for credit losses		92,887			(3,494	)		—				89,393
Non-interest income
Service charges and fees		5,110			—			—				5,110
Debit card income		5,068			—			—				5,068
Mortgage banking		433			—			—				433
Increase in value of bank-owned life insurance		1,739			—			—				1,739
Net gain on acquisition and branch sales		1,300			—			—				1,300
Net gain (loss) from securities transactions		(277	)		293			—				16
Other		7,023			30,088			(30,088	)	(a)		7,023
Total non-interest income		20,396			30,381			(30,088	)			20,689
Non-interest expense
Salaries and employee benefits		35,837			87			—				35,924
Net occupancy and equipment		7,322			—			—				7,322
Data processing		9,864			—			—				9,864
Professional fees		2,840			330			—				3,170
Advertising and business development		2,528			1			—				2,529
Telecommunications		1,227			—			—				1,227
FDIC insurance		1,161			—			—				1,161
Courier and postage		1,226			—			—				1,226
Free nationwide ATM cost		1,025			—			—				1,025
Amortization of core deposit intangibles		2,117			—			—				2,117
Loan expense		304			—			—				304
Other real estate owned		(67	)		—			—				(67	)
Merger expenses		3,278			565			—				3,843
Other		6,676			(298	)		—				6,378
Intersegment service charges		(690	)		690			—				—
Total non-interest expense		74,648			1,375			—				76,023
Income (loss) before income tax		38,635			25,512			(30,088	)			34,059
Provision (benefit) for income taxes		9,262			(987	)		—				8,275
Total segment profit/(loss)	$	29,373		$	26,499		$	(30,088	)		$	25,784
(a) Elimination of equity in earnings of subsidiary

				Unallocated Holding
				Company
	Equity Bank			Amounts			Eliminations				Total
Six Months ended June 30, 2023
Interest and dividend income	$	117,336		$	43		$	—			$	117,379
Interest expense		35,010			3,830			—				38,840
Net interest income		82,326			(3,787	)		—				78,539
Provision (reversal) for credit losses		(68	)		—			—				(68	)
Net interest income after provision (reversal) for credit losses		82,394			(3,787	)		—				78,607
Non-interest income
Service charges and fees		5,198			—			—				5,198
Debit card income		5,207			—			—				5,207
Mortgage banking		301			—			—				301
Increase in value of bank-owned life insurance		2,340			—			—				2,340
Net gain (loss) from securities transactions		(1,290	)		—			—				(1,290	)
Other		3,794			28,043			(28,043	)	(a)		3,794
Total non-interest income		15,550			28,043			(28,043	)			15,550
Non-interest expense
Salaries and employee benefits		31,847			82			—				31,929
Net occupancy and equipment		5,819			—			—				5,819
Data processing		8,409			—			—				8,409
Professional fees		2,670			359			—				3,029
Advertising and business development		2,408			—			—				2,408
Telecommunications		1,001			—			—				1,001
FDIC insurance		875			—			—				875
Courier and postage		921			—			—				921
Free nationwide ATM cost		1,049			—			—				1,049
Amortization of core deposit intangibles		1,836			—			—				1,836
Loan expense		253			—			—				253
Other real estate owned		190			—			—				190
Other		9,083			(443	)		—				8,640
Intersegment service charges		(662	)		662			—				—
Total non-interest expense		65,699			660			—				66,359
Income (loss) before income tax		32,245			23,596			(28,043	)			27,798
Provision (benefit) for income taxes		5,049			(1,030	)		—				4,019
Total segment profit/(loss)	$	27,196		$	24,626		$	(28,043	)		$	23,779
(a) Elimination of equity in earnings of subsidiary

				Unallocated Holding
				Company
	Equity Bank			Amounts			Eliminations				Total
Three Months ended June 30, 2024
Interest and dividend income	$	74,959		$	173		$	—			$	75,132
Interest expense		26,735			1,921			—				28,656
Net interest income		48,224			(1,748	)		—				46,476
Provision (reversal) for credit losses		265			—			—				265
Net interest income after provision (reversal) for credit losses		47,959			(1,748	)		—				46,211
Non-interest income
Service charges and fees		2,541			—			—				2,541
Debit card income		2,621			—			—				2,621
Mortgage banking		245			—			—				245
Increase in value of bank-owned life insurance		911			—			—				911
Net gain on acquisition and branch sales		60			—			—				60
Net gain (loss) from securities transactions		(27	)		—			—				(27	)
Other		2,607			13,785			(13,785	)	(a)		2,607
Total non-interest income		8,958			13,785			(13,785	)			8,958
Non-interest expense
Salaries and employee benefits		17,788			39			—				17,827
Net occupancy and equipment		3,787			—			—				3,787
Data processing		5,036			—			—				5,036
Professional fees		1,610			168			—				1,778
Advertising and business development		1,291			—			—				1,291
Telecommunications		572			—			—				572
FDIC insurance		590			—			—				590
Courier and postage		620			—			—				620
Free nationwide ATM cost		531			—			—				531
Amortization of core deposit intangibles		1,218			—			—				1,218
Loan expense		195			—			—				195
Other real estate owned		17			—			—				17
Merger expenses		2,282			5			—				2,287
Other		4,121			(999	)		—				3,122
Intersegment service charges		(345	)		345			—				—
Total non-interest expense		39,313			(442	)		—				38,871
Income (loss) before income tax		17,604			12,479			(13,785	)			16,298
Provision (benefit) for income taxes		5,091			(509	)		—				4,582
Total segment profit/(loss)	$	12,513		$	12,988		$	(13,785	)		$	11,716
(a) Elimination of equity in earnings of subsidiary

				Unallocated Holding
				Company
	Equity Bank			Amounts			Eliminations				Total
Three Months ended June 30, 2023
Interest and dividend income	$	61,231		$	25		$	—			$	61,256
Interest expense		19,877			1,950			—				21,827
Net interest income		41,354			(1,925	)		—				39,429
Provision (reversal) for credit losses		298			—			—				298
Net interest income after provision (reversal) for credit losses		41,056			(1,925	)		—				39,131
Non-interest income
Service charges and fees		2,653			—			—				2,653
Debit card income		2,653			—			—				2,653
Mortgage banking		213			—			—				213
Increase in value of bank-owned life insurance		757			—			—				757
Net gain (loss) from securities transactions		(1,322	)		—			—				(1,322	)
Other		2,484			13,258			(13,746	)	(a)		1,996
Total non-interest income		7,438			13,258			(13,746	)			6,950
Non-interest expense
Salaries and employee benefits		15,198			39			—				15,237
Net occupancy and equipment		2,940			—			—				2,940
Data processing		4,493			—			—				4,493
Professional fees		1,391			254			—				1,645
Advertising and business development		1,249			—			—				1,249
Telecommunications		516			—			—				516
FDIC insurance		515			—			—				515
Courier and postage		463			—			—				463
Free nationwide ATM cost		524			—			—				524
Amortization of core deposit intangibles		918			—			—				918
Loan expense		136			—			—				136
Other real estate owned		71			—			—				71
Other		5,128			(705	)		—				4,423
Intersegment service charges		(986	)		986			—				—
Total non-interest expense		32,556			574			—				33,130
Income (loss) before income tax		15,938			10,759			(13,746	)			12,951
Provision (benefit) for income taxes		2,035			(540	)		—				1,495
Total segment profit/(loss)	$	13,903		$	11,299		$	(13,746	)		$	11,456
(a) Elimination of equity in earnings of subsidiary

	For the Six Months ended June 30,
	2024							2023
	Equity Bank		Administrative Adjustments			Total		Equity Bank		Administrative Adjustments			Total
Depreciation	$	2,643	$	90		$	2,733	$	2,211	$	76		$	2,287
Amortization of operating lease    right-of-use-asset		216		—			216		323		—			323
Amortization of clout computing    implementation costs		70		—			70		94		—			94
Amortization of intangible assets		2,189		—			2,189		1,908		—			1,908
Purchase of long lived assets		6,337		—			6,337		7,101		—			7,101
Provision (benefit) for income taxes		9,262		(987	)		8,275		5,049		(1,030	)		4,019
	For the Three Months ended June 30,
	2024							2023
	Equity Bank		Administrative Adjustments			Total		Equity Bank		Administrative Adjustments			Total
Depreciation	$	1,314	$	45		$	1,359	$	1,117	$	38		$	1,155
Amortization of operating lease    right-of-use-asset		124		—			124		124		—			124
Amortization of clout computing    implementation costs		35		—			35		47		—			47
Amortization of intangible assets		1,254		—			1,254		954		—			954
Purchase of long lived assets		873		—			873		2,687		—			2,687
Provision (benefit) for income taxes		5,091		(509	)		4,582		2,035		(540	)		1,495

	June 30,			December 31,
	2024			2023
Assets
Total assets for reportable segments	$	5,234,647		$	5,024,161
Holding company administrative adjustments		568,553			560,434
Elimination of bank cash and equity in earnings of subsidiaries		(18,632	)		(13,515	)
Elimination of investment in subsidiaries		(539,051	)		(536,488	)
Consolidated total assets	$	5,245,517		$	5,034,592