Q2 2026 Equity Bancshares Inc Earnings Call

July 15, 2026

Operator 1: Hello, everyone. Thank you for joining us, welcome to the Equity Bancshares Q2 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Luke Fifer. Luke, please go ahead.

Operator: Hello, everyone. Thank you for joining us, welcome to the Equity Bancshares Q2 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Luke J. Pfeifer. Luke, please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Luke Pfeiffer.

Speaker #1: Luke, please go ahead.

Speaker #2: Welcome, everyone, and thank you for joining the Equity Bancshares Q4 earnings call. A quick note before we begin: today's call is being recorded and is available via webcast at investor.equitybanks.com, along with our earnings release and presentation materials.

Luke Fifer: Welcome, everyone, thank you for joining the Equity Bancshares Q2 earnings call. A quick note before we begin. Today's call is being recorded and is available via webcast at investor.equitybank.com, along with our earnings release and presentation materials. Today's presentation contains forward-looking statements, which are subject to certain risks, uncertainties, and other factors that could cause actual results to differ materially from those discussed. After the presentation, we'll open the floor up for questions and discussion. A conversation we look forward to. With that, let me turn the call over to our chairman and CEO, Brad Elliott.

Luke J. Pfeifer: Welcome, everyone, thank you for joining the Equity Bancshares Q2 earnings call. A quick note before we begin. Today's call is being recorded and is available via webcast at investor.equitybank.com, along with our earnings release and presentation materials. Today's presentation contains forward-looking statements, which are subject to certain risks, uncertainties, and other factors that could cause actual results to differ materially from those discussed. After the presentation, we'll open the floor up for questions and discussion. A conversation we look forward to. With that, let me turn the call over to our chairman and CEO, Brad Elliott.

Speaker #2: Today's presentation contains forward-looking statements, which are subject to certain risks, uncertainties, and other factors that could cause actual results to differ materially from those discussed.

Speaker #2: After the presentation, we'll open the floor up for questions and discussion. The conversation we look forward to. With that, let me turn the call over to our Chairman and CEO, Brad Elliott.

Speaker #3: Good morning, everyone, and thank you for joining us. Today's results are what we've been working towards since we announced the NBC and Frontier transactions.

Brad Elliott: Good morning, everyone, thank you for joining us. Today's results are what we've been working towards since we announced the NBC and Frontier transactions. We knew what the numbers would look like once the merger noise was muted, and we could see the earnings power of the combined companies with Equity Bank. Our teams worked hard to get the Frontier transaction closed on 1 January and merged in Q1. With a desire to keep as much of the M&A noise in Q1 to let everyone see a more normalized number this quarter. For the first time since closing, we are clearly showing investors what this franchise earns without the noise of merger charges, Day Two provisions, and integration costs overshadowing the combined earnings of Equity. GAAP EPS was $1.27 per diluted share, and ROATCE was 16.6%. Core EPS was $1.41, and ROATCE was 17.2.

Speaker #3: We knew what the numbers would look like once the merger noise was muted. And we could see the earnings power of the combined companies with equity bank.

Speaker #3: Our teams worked hard to get the Frontier transaction closed on January 1st and merged in the first quarter. With a desire to keep as much of the M&A noise in the first quarter to let everyone see a more normalized number this quarter, for the first time since closing, we are clearly showing investors what this franchise earns without the noise of merger charges.

Speaker #3: Day 2 provisions and integration costs overshadowing the combined earnings of equity. GAAP EPS was $1.27 per diluted share, and ROATCE was $16.6%. Core EPS was $1.41, and ROATCE was $17.2.

Speaker #3: Our efficiency ratio for the quarter was 53.4%. Those are exciting numbers that we want to talk about today. When you have worked hard to negotiate and structure these transactions, and you can see firsthand the power of what happens when two complementary companies come together or, in this case, three, it means something special.

Brad Elliott: Our efficiency ratio for the quarter was 53.4%. Those are exciting numbers that we want to talk about today. When you have worked hard to negotiate and structure these transactions, and you can see firsthand the power of what happens when two complementary companies come together, or in this case, three, it means something special. It is exciting to see that the hard work shows up in the operating metrics. Margin was 4.36%, up 3 basis points from last quarter, driven by a more favorable earning asset mix we talked about on previous calls, and a higher bond discount accretion. As I said, the core conversion is complete and behind us. Now our teams are locked in on what we have been focused on, and that is organic growth. We have exciting things to talk about in this area.

Speaker #3: It is exciting to see that the hard work shows up in the operating metrics. Margin was 4.36%, up 3 basis points from last quarter, driven by a more favorable earning asset mix we talked about on previous calls.

Speaker #3: And a higher bond discount accretion. As I said, the core conversion is complete and behind us. Now our teams are locked in on what we have been focused on.

Speaker #3: And that is organic growth. We have exciting things to talk about in this area. It always looks muted as we work to reset portfolios but organic growth is our priority.

Brad Elliott: It always looks muted as we work to reset portfolios, organic growth is our priority. Let me take a moment on a topic I'm genuinely excited about and one that Equity Bank is leaning into aggressively, AI and automation. This is not new for us. It has been core to how we built this company. When you build an organization around entrepreneurship, it naturally adapts to new technologies and new ways of thinking as they come along. We have always believed the banks that win will be the ones that grow the balance sheet and deepen relationships without growing the cost structure at the same pace. Technology is exactly how we do that. We are not talking about this, we're actually doing it. Today, 15% of our staff are actively using Anthropic AI products and 75% have Microsoft Copilot installed.

Speaker #3: Let me take a moment on a topic I'm genuinely excited about and one that EQUITY BANK is leaning into aggressively. AI and automation. This is not new for us.

Speaker #3: It has been core to how we built this company. When you build an organization around entrepreneurship, it naturally adapts to new technologies and new ways of thinking as they come along.

Speaker #3: We have always believed the banks that win will be the ones that grow the balance sheet and deepen relationships without growing the cost structure at the same pace.

Speaker #3: And technology is exactly how we do that. We are not just talking about this; we're actually doing it. Today, 15% of our staff are actively using Anthropic's AI products.

Speaker #3: And 75% have Microsoft Copilot installed. I want to be clear: we do not plan to reach 100% with Copilot or Anthropic in our organization as some roles in our company can't use it.

Brad Elliott: I want to be clear, we do not plan to reach 100% with Copilot or Anthropic in our organization, as some roles in our company can't use it or benefit from it. We're not adding the expense. We currently have six bots running in production, AI is actively supporting functions like loan review and M&A due diligence, along with many other practical improvements across the bank. We have moved from theory or it being cool to the implementation phase. We are putting these tools to work across our operations, streamlining back-office processes, speeding up onboarding and credit workflows, giving time back to our bankers so they can spend it with what matters most, our customers. We have not yet fully tapped the expense reduction opportunity, that is intentional. Phase 1 is implementation, stabilization, and proof of concept.

Speaker #3: Or benefit from it. So we're not adding the expense. We currently have six bots running in production and AI is actively supporting functions like loan review and M&A due diligence, along with many other practical improvements across the bank.

Speaker #3: We have moved from theory or it being cool to the implementation phase. We are putting these tools to work across our operations. Streamlining back office processes, speeding up onboarding and credit workflows, and giving time back to our bankers so they can spend it with what matters most, our customers.

Speaker #3: We have not yet fully tapped the expense reduction opportunity and that is intentional. Phase 1 is implementation, stabilization, and proof of concept. Phase 2 is where the efficiency gains show up in the numbers.

Brad Elliott: Phase 2 is where the efficiency gains show up in the numbers. Honestly, this area excites me more than anything I've seen in my career since the adoption of personal computers. That era took us from assets per employee from under $1 million per employee to around $5 million per employee in a few short years. I believe we are on the front end of a similar shift, Equity Bank is positioned to lead it. Let me turn it over to Rick, our bank CEO, to walk you through the bank operations. Rick?

Speaker #3: Honestly, this area excites me more than anything I've seen in my career since the adoption of personal computers. That era took us from assets per employee from under $1 million per employee to around $5 million per employee in a few short years.

Speaker #3: I believe we are on the front end of a similar shift and EQUITY BANK is positioned to lead it. Let me turn it over to Rick, our bank CEO, to walk you through the bank operations.

Speaker #3: Rick?

Speaker #4: Thanks, Brad. Our transformative year continued in the second quarter as we worked with intention to position our teams across both the Oklahoma City and Nebraska footprints to best serve our customers and grow our franchise.

[Company Representative] (Equity Bancshares): Thanks, Brad. Our transformative year continued in Q2 as we worked with intention to position our teams across both the Oklahoma City and Nebraska footprints to best serve our customers and grow our franchise. In the quarter, we added a team in Lincoln led by Russ Seebeck, and saw immediate benefit. We also added experienced bankers in each of our new metro footprints, individuals with large bank and complex customer backgrounds to position each market for growth. Notably, our Omaha team, under the leadership of Kevin Macroden and Travis Flodin, has already begun optimizing the inherited portfolio and attracting new customers. As we look to H2, I'm excited about the contributions each of our markets is now positioned to make to our organic growth efforts.

Rick Sems: Thanks, Brad. Our transformative year continued in Q2 as we worked with intention to position our teams across both the Oklahoma City and Nebraska footprints to best serve our customers and grow our franchise. In the quarter, we added a team in Lincoln led by Russ Seebeck, and saw immediate benefit. We also added experienced bankers in each of our new metro footprints, individuals with large bank and complex customer backgrounds to position each market for growth. Notably, our Omaha team, under the leadership of Kevin Macroden and Travis Flodin, has already begun optimizing the inherited portfolio and attracting new customers. As we look to H2, I'm excited about the contributions each of our markets is now positioned to make to our organic growth efforts.

Speaker #4: In the quarter, we added a team in Lincoln led by Russ Seebeck and saw immediate benefit. We also added experienced bankers in each of our new metro footprints.

Speaker #4: Individuals with large bank and complex customer backgrounds to position each market for growth. Notably, our Omaha team under the leadership of Kevin McCrudden and Travis Flodin has already begun optimizing the inherited portfolio and attracting new customers.

Speaker #4: As we look to the back half of the year, I am excited about the contributions each of our markets is now positioned to make to our organic growth efforts.

Speaker #4: The former NBC markets should approach an inflection point over the next two quarters, and while the frontier portfolio will likely experience continued pruning, the addition of the Lincoln and Omaha teams should help us absorb some of that attrition.

[Company Representative] (Equity Bancshares): The former NBC markets should approach an inflection point over the next 2 quarters. While the Frontier portfolio will likely experience continued pruning, the addition of the Lincoln and Omaha teams should help us absorb some of that attrition. During the quarter, loan and deposit balances in total continue to face headwinds from normal runoff and optimization efforts surrounding the acquired portfolios. Importantly, our legacy markets absorbed the majority of that loan pressure, resulting in effectively flat balances period over period. Production, however, began to reflect the scale of our now larger franchise. We closed $315 million in loans, our largest quarterly production level ever, at an average rate of 6.56%. That represents $119 million or 60% increase compared to the same period in 2025. Key contributors were Kansas City, Des Moines, and Western Kansas.

Rick Sems: The former NBC markets should approach an inflection point over the next two quarters. While the Frontier portfolio will likely experience continued pruning, the addition of the Lincoln and Omaha teams should help us absorb some of that attrition. During the quarter, loan and deposit balances in total continue to face headwinds from normal runoff and optimization efforts surrounding the acquired portfolios. Importantly, our legacy markets absorbed the majority of that loan pressure, resulting in effectively flat balances period over period. Production, however, began to reflect the scale of our now larger franchise. We closed $315 million in loans, our largest quarterly production level ever, at an average rate of 6.56%. That represents $119 million or 60% increase compared to the same period in 2025. Key contributors were Kansas City, Des Moines, and Western Kansas.

Speaker #4: During the quarter, loan and deposit balances in total continue to face headwinds from normal runoff and optimization efforts surrounding the acquired portfolios. Importantly, our legacy markets absorbed the majority of that loan pressure, resulting in effectively flat balances period over period.

Speaker #4: Production, however, began to reflect the scale of our now larger franchise. We closed 315 million in loans, our largest quarterly production level ever, at an average rate of 6.56%.

Speaker #4: That represents $119 million, or a 60% increase compared to the same period in 2025. Key contributors were Kansas City, Des Moines, and Western Kansas. I want to specifically recognize the work Levi Getz, our Western market president, has done.

[Company Representative] (Equity Bancshares): I want to specifically recognize the work Levi Goetz, our Western Market president, has done. That team has demonstrated the power of a disciplined, customer-focused calling culture, and Levi will now be expanding his oversight to include Central Kansas as well. Loan balances in non-acquired markets grew at an annualized rate exceeding 10% and are up 3% compared to Q2 2025. The underlying sales discipline, customer experience prioritization, and operational strength are clearly there. Our current pipeline, which stands at $1.6 billion, a 23% increase over last quarter, and our 75% pipeline, which is now at $475 million, show the trajectory that we are on. As the more pronounced J-curve from our recent acquisitions work through the balance sheet, we will be well-positioned to accelerate growth. Throughout the balance sheet transition, we have maintained discipline on pricing and structure.

Rick Sems: I want to specifically recognize the work Levi Goetz, our Western Market president, has done. That team has demonstrated the power of a disciplined, customer-focused calling culture, and Levi will now be expanding his oversight to include Central Kansas as well. Loan balances in non-acquired markets grew at an annualized rate exceeding 10% and are up 3% compared to Q2 2025. The underlying sales discipline, customer experience prioritization, and operational strength are clearly there. Our current pipeline, which stands at $1.6 billion, a 23% increase over last quarter, and our 75% pipeline, which is now at $475 million, show the trajectory that we are on. As the more pronounced J-curve from our recent acquisitions work through the balance sheet, we will be well-positioned to accelerate growth. Throughout the balance sheet transition, we have maintained discipline on pricing and structure.

Speaker #4: That team has demonstrated the power of a disciplined, customer-focused calling culture. And Levi will now be expanding his oversight to include central Kansas as well.

Speaker #4: Loan balances in non-acquired markets grew at an annualized rate exceeding 10% and are up 3% compared to quarter two, 2025. The underlying sales discipline, customer experience, prioritization, and operational strength are clearly there.

Speaker #4: Our current pipeline, which stands at $1.6 billion a 23% increase over last quarter, and our 75% pipeline which is now at $475 million show the trajectory that we are on.

Speaker #4: As the more pronounced J curve from our recent acquisitions work through the balance sheet, we will be well positioned to accelerate growth. Throughout the balance sheet transition, we have maintained discipline on pricing and structure.

Speaker #4: Newer originations continue to come on at a level accretive to coupon loan yields, and we have not chased production that would erode margin or diminish returns on deployed capital.

[Company Representative] (Equity Bancshares): New originations continue to come on at a level accretive to coupon loan yields, and we have not chased production that would erode margin or diminish returns on deployed capital. Total deposits were flat for the quarter, while non-brokered balances declined modestly. Q2 is a seasonal period of outflows as customers meet tax obligations and service debt. This quarter was no exception. The decline in core balances were concentrated in existing customer relations, which we view as transitory rather than structural. Cost of deposits declined modestly as utilization of lower cost accounts offset continued optimization of higher cost acquired funds. Looking forward, the groundwork being laid by our retail team will position the bank to deepen existing relationships and expand our customer base. Our legacy markets never lost focus during the M&A activity, and that discipline shows.

Rick Sems: New originations continue to come on at a level accretive to coupon loan yields, and we have not chased production that would erode margin or diminish returns on deployed capital. Total deposits were flat for the quarter, while non-brokered balances declined modestly. Q2 is a seasonal period of outflows as customers meet tax obligations and service debt. This quarter was no exception. The decline in core balances were concentrated in existing customer relations, which we view as transitory rather than structural. Cost of deposits declined modestly as utilization of lower cost accounts offset continued optimization of higher cost acquired funds. Looking forward, the groundwork being laid by our retail team will position the bank to deepen existing relationships and expand our customer base. Our legacy markets never lost focus during the M&A activity, and that discipline shows.

Speaker #4: Total deposits were flat for the quarter, while non-brokered balances declined modestly. Q2 is a seasonal period of outflows, as customers meet tax obligations and service debt. This quarter was no exception.

Speaker #4: The decline in core balances were concentrated in existing customer relations, which we view as transitory rather than structural. Cost of deposits declined modestly as utilization of lower-cost accounts offset continued optimization of higher-cost acquired funds.

Speaker #4: Looking forward, the groundwork being laid by our retail team will position the bank to deepen existing relationships and expand our customer base. Our legacy markets never lost focus during the M&A activity, and that discipline shows.

Speaker #4: On a same-store basis, we generated checking accounts at our highest level ever, up 24% versus Q2 2025, and achieved net checking account growth in legacy markets at a rate this company has not previously seen.

[Company Representative] (Equity Bancshares): On a same-store basis, we generated checking accounts at our highest level ever, up 24% versus Q2 2025, and achieved net checking account growth in legacy markets at a rate this company has not previously seen. The H2 2026 is about expanding existing relationships and winning new ones, and this team is well-positioned to do exactly that. In addition, our focus on customer service in the branches is taking hold as our customer satisfaction scores continue to rise. Within fee income, we continue to see momentum. Trust and wealth management is growing revenue. Mortgage banking is benefiting from the addition of the Nebraska footprint, and debit and credit card results are expanding with added value. Investments in our treasury functions will enhance our ability to fully serve commercial customers across the comprehensive product suite.

Rick Sems: On a same-store basis, we generated checking accounts at our highest level ever, up 24% versus Q2 2025, and achieved net checking account growth in legacy markets at a rate this company has not previously seen. The H2 2026 is about expanding existing relationships and winning new ones, and this team is well-positioned to do exactly that. In addition, our focus on customer service in the branches is taking hold as our customer satisfaction scores continue to rise. Within fee income, we continue to see momentum. Trust and wealth management is growing revenue. Mortgage banking is benefiting from the addition of the Nebraska footprint, and debit and credit card results are expanding with added value. Investments in our treasury functions will enhance our ability to fully serve commercial customers across the comprehensive product suite.

Speaker #4: The second half of 2026 is about expanding existing relationships and winning new ones, and this team is well positioned to do exactly that. In addition, our focus on customer service in the branches is taking hold as our customer satisfaction scores continue to rise.

Speaker #4: Within fee income, we continue to see momentum. Trust and wealth management is growing revenue, mortgage banking is benefiting from the addition of the Nebraska footprint, and debit and credit card results are expanding with added value.

Speaker #4: Investments and our treasury functions will enhance our ability to fully serve commercial customers across the comprehensive product suite. To that end, we have brought in Melissa Mooring to lead that strategic initiative to grow treasury management—mirroring our commercial lending expertise—with a full product suite designed to meet the complete scope of our customers' banking needs.

[Company Representative] (Equity Bancshares): To that end, we have brought in Melissa Moring to lead that strategic initiative to grow treasury management, mirroring our commercial lending expertise with a full product suite designed to meet the complete scope of our customers' banking needs. On credit quality, non-performing assets moved from 76 basis points to 86 basis points of total assets. A portion of that increase is attributed to credits inherited from Frontier, which we are actively working through. Net charge-offs were $1.7 million or 12 basis points annualized. Classified assets to regulatory capital improved modestly at 11.9%. We remain comfortable with the overall credit posture of this portfolio. We now operate in 6 states and 7 major metros, all growing markets. Behind the merger-driven noise, our organic growth engine is evident and strong.

Rick Sems: To that end, we have brought in Melissa Moring to lead that strategic initiative to grow treasury management, mirroring our commercial lending expertise with a full product suite designed to meet the complete scope of our customers' banking needs. On credit quality, non-performing assets moved from 76 basis points to 86 basis points of total assets. A portion of that increase is attributed to credits inherited from Frontier, which we are actively working through. Net charge-offs were $1.7 million or 12 basis points annualized. Classified assets to regulatory capital improved modestly at 11.9%. We remain comfortable with the overall credit posture of this portfolio. We now operate in six states and seven major metros, all growing markets. Behind the merger-driven noise, our organic growth engine is evident and strong.

Speaker #4: On credit quality, non-performing assets moved from 76 basis points to 86 basis points of total assets. A portion of that increase is attributed to credits inherited from Frontier, which we are actively working through.

Speaker #4: Net charge-offs were $1.7 million, or 12 basis points annualized. Classified assets to regulatory capital improved modestly at 11.9%. We remain comfortable with the overall credit posture of this portfolio.

Speaker #4: We now operate in six states and seven major metros, all growing markets. Behind the merger-driven noise are organic growth engine is evident and strong.

Speaker #4: Our leaders understand our value proposition, and I look forward to what they will accomplish through the remainder of 2026 and beyond. I'll turn it to Chris to cover the financials in detail.

[Company Representative] (Equity Bancshares): Our leaders understand our value proposition, and I look forward to what they will accomplish through the remainder of 2026 and beyond. I'll turn it to Chris to cover the financials in detail.

Rick Sems: Our leaders understand our value proposition, and I look forward to what they will accomplish through the remainder of 2026 and beyond. I'll turn it to Chris to cover the financials in detail.

Speaker #5: Thanks, Rick. Good morning. Net income for the quarter was $26.4 million, or $1.27 per share. Excluding M&A expenses, intangible amortization, and losses on securities, core net income was $29.4 million, or $1.41 per share.

Chris Navratil: Thanks, Rick. Good morning. Net income for the quarter was $26.4 million or $1.27 per share. Excluding M&A expenses, intangible amortization, and losses on securities, core net income was $29.4 million or $1.41 per share. Pre-tax, pre-provision net revenue adjusted for merger expenses and losses on securities was $36.4 million, up $2.4 million quarter over quarter. Net interest income was $73.9 million. This reflects declining purchase accounting accretion and lower average earning assets offset by higher security yields and a lower cost of funds. Net interest margin expanded 3 basis points to 4.36%. Loan purchase accounting accretion contributed $2.9 million or approximately 17 basis points in line with our expectations. For the H2 2026, the margin may decrease modestly as we look for expansion of average earning assets to $6.85 to $6.95 billion. The compression reflects the expected mix shift and continued accretion burn-down.

Speaker #5: Pre-tax, pre-provision net revenue, adjusted for merger expenses and losses on securities, was $36.4 million, up $2.4 million quarter over quarter. Net interest income was $73.9 million. This reflects declining purchase accounting accretion and lower average earning assets, offset by higher securities yields and a lower cost of funds.

Speaker #5: Net interest margin expanded three basis points to 4.36%. Loan purchase accounting accretion contributed $2.9 million, or approximately 17 basis points, in line with our expectations.

Speaker #5: For the second half of 2026, the margin may decrease modestly as we look for expansion of average earning assets to $6.85 to $6.95 billion.

Speaker #5: The compression reflects the expected mix shift and continued accretion burn down. Non-interest income was $8.1 million, excluding $2.2 million in losses realized on securities and the write-down of a fund investment. Core non-interest income was $10.3 million, up $0.7 million linked quarter.

Chris Navratil: Non-interest income was $8.1 million. Excluding $2.2 million in losses realized on securities and the write-down of a fund investment, core non-interest income was $10.3 million, up $0.7 million linked quarter. We are encouraged by the growth in fee income from debit and credit card activity, mortgage, and trust and wealth management. We are guiding to non-interest income of $18 to $22 million for H2. Non-interest expense was $46.9 million, down from $55 million in the previous quarter. Excluding merger costs in both periods, expenses declined $2.5 million to $46.8 million. Non-interest expense also benefits from gain on sale of assets of $850,000 in the quarter. The efficiency ratio improved to 53.4%, an improvement of over 10 percentage points compared to the same quarter last year. Our H2 guidance for non-interest expense is $94 to $98 million.

Speaker #5: We are encouraged by the growth in fee income from debit and credit card activity, mortgage, and trust and wealth management. We are guiding to non-interest income of $18 to $22 million for the second half.

Speaker #5: Non-interest expense was 46.9 million down from 55 million in the previous quarter. Excluding merger costs in both periods, expenses declined 2.5 million to 46.8 million.

Speaker #5: Non-interest expense also benefit from gain on sale of assets of $850,000 in the quarter. The efficiency ratio improved to 53.4% and improvement of over 10 percentage points compared to the same quarter last year.

Speaker #5: Our second half guidance for non-interest expense is $94 to $98 million. As Brad and Rick have noted, we remain committed to delivering on operational efficiency.

Chris Navratil: As Brad and Rick have noted, we remain committed to delivering on operational efficiency. Capital remains strong. TCE closed the quarter at 9.07%, CET1 was 11.84%, and total risk-based capital was 14.66%. Tangible book value per share grew to $33.45 from $32.58. We returned capital to shareholders through an $0.18 per share dividend and the repurchase of an additional 211,000 shares of our stock. Total shares repurchased year to date are 711,000 shares at $44.84 per share. I'll turn it back to Brad for closing remarks.

Speaker #5: Capital remained strong. TCE closed the quarter at 9.07%, CET1 was 11.84%, and total risk-based capital was 14.66%. Tangible book value per share grew to $33.45 from $32.58.

Speaker #5: We returned capital to shareholders through an 18-cent per share dividend, and the repurchase of an additional $211,000 shares of our stock. Total shares repurchased year to date are $711,000 shares, at 4484 per share.

Speaker #5: I'll turn it back to Brad for closing remarks. Thank you, Chris. We are proud of the progress this quarter and the trajectory of the Equity Bank franchise.

Brad Elliott: Thank you, Chris. We are proud of the progress this quarter and the trajectory of the Equity Bank franchise. A year and a half ago, we told you we were building something. You trusted us by investing new capital in Equity so that we could execute on what we saw in the marketplace, accretive M&A targets. We thank you for the trust. We are now $7.7 billion in assets, reflecting a 19.4% total compounded annual growth rate since 2010, and a franchise that is generating returns that are among the best in our peer group. Our core ROIC of 17.2% is evidence that the strategy is working. H2 of 2026 is about executing on what is right in front of us. Organic growth, deepening relationships across Kansas, Missouri, Oklahoma, Nebraska, Iowa, and Arkansas, driving efficiency across the franchise, and continuing to build tangible book value for our shareholders.

Speaker #5: A year and a half ago, we told you we were building something. You trusted us by investing new capital in equity. So that we could execute on what we saw in the marketplace, accretive M&A targets.

Speaker #5: We thank you for the trust. We are now 7.7 billion in assets, reflecting a 19.4% total compounded annual growth rate since 2010. And a franchise that is generating returns that are among the best in our peer group.

Speaker #5: Our core ROTC of 17.2% is evidence that the strategy is working. The second half of 2026 is about executing on what is right in front of us.

Speaker #5: Organic growth, deepening relationships across Kansas, Missouri, Oklahoma, Nebraska, Iowa, and Arkansas. Driving efficiency across the franchise and continuing to build tangible book value for our shareholders.

Speaker #5: That is where the majority of our energy and attention is concentrated, and we are seeing real momentum on all fronts. This team has done that every single year, and we plan to keep doing it.

Brad Elliott: That is where the majority of our energy and attention is concentrated, and we are seeing real momentum on all fronts. This team has done that every single year, and we plan to keep doing it. That said, M&A has always been part of how we have built this company, and that has not changed. We remain active in evaluating opportunities, and our pipeline reflects that. When something fits our strategy, meets our return standards, and genuinely makes Equity a better company, we move on it. When it does not clear the bar, we stay disciplined and keep our attention on the growth we are already generating. We are not chasing deals for the sake of activity. We are focused on the right deals, and right now, we like what we're seeing in the marketplace and the opportunities in front of us.

Speaker #5: That said, M&A has always been part of how we have built this company, and that has not changed. We remain active in evaluating opportunities, and our pipeline reflects that.

Speaker #5: When something fits our strategy, meets our return standards, and genuinely makes equity a better company, we move on it. When it does not clear the bar, we stay disciplined and keep our attention on the growth we are already generating.

Speaker #5: We are not chasing deals for the sake of activity. We are focused on the right deals. And right now, we like what we're seeing in the marketplace and the opportunities in front of us.

Speaker #5: I want to thank you for joining our call today, and we're happy to take any questions at this time.

Brad Elliott: I want to thank you for joining our call today, and we're happy to take any questions at this time.

Speaker #3: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand.

Operator 2: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Damon DelMonte with KBW. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Damon DelMonte with KBW. Your line is open. Please go ahead.

Speaker #3: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Damon Del Monte with KBW.

Speaker #3: Your line is open. Please go ahead.

Speaker #4: Hey, good morning, guys. Hope everybody's doing well. First question, just on loan growth. Good to hear the color on the pipeline and the kind of the trends and the legacy portfolio.

Damon DelMonte: Hey, good morning, guys. Hope everybody's doing well. First question, just on loan growth. Good to hear the color on the pipeline and the kind of the trends in the legacy portfolio. We think about the ongoing attrition and rightsizing of the acquired portfolios, how do we think about net growth for the next few quarters until you work through that? Do you think it's flattish, or do you think on a net basis, it could be low single digits?

Speaker #4: As we kind of think about the ongoing attrition and kind of right sizing of the acquired portfolios, how do we kind of think about net growth for the next.

Speaker #4: Few quarters until you kind of work through that? Do you think it's kind of flattish or do you think there's on a net basis, it could be kind of low single digits?

Speaker #5: Yeah. Hey, Damon, thanks. This is Rick. Yeah, we think we have loan growth in total. So how are you? We're believing and seeing that we will have loan growth what's happening in the legacy markets strong pipeline, strong growth there.

[Company Representative] (Equity Bancshares): Yes. Hey, Damon. Thanks. This is Rick.

Rick Sems: Yes. Hey, Damon. Thanks. This is Rick.

[Company Representative] (Equity Bancshares): Hey, Rick.

Damon DelMonte: Hey, Rick.

[Company Representative] (Equity Bancshares): Yeah, we think we'll have loan growth in total. How are you? We're believing and seeing that we will have loan growth with what's happening in the legacy markets. Strong pipeline, strong growth there. You just start having that flowing as you get into a year past NBC. We think we're getting close to that, then the same thing as we get later into the Frontier deal. We're looking at low single digits or mid-single digits growth for H2 of the year.

Rick Sems: Yeah, we think we'll have loan growth in total. How are you? We're believing and seeing that we will have loan growth with what's happening in the legacy markets. Strong pipeline, strong growth there. You just start having that flowing as you get into a year past NBC. We think we're getting close to that, then the same thing as we get later into the Frontier deal. We're looking at low single digits or mid-single digits growth for H2 of the year.

Speaker #5: And you just start having that slowing as you get into a year past NBC. We think we're getting close to that. And then the same thing as we get later into the Frontier deals.

Speaker #5: So we're looking at low single-digit or mid-single-digit growth for the second half of the year.

Speaker #4: Got it. Okay. That's helpful. And are there any industries where you're seeing a good flow of opportunities or is it kind of broad-based?

Damon DelMonte: Got it. Okay. That's helpful. Are there any industries where you're seeing a good flow of opportunities, or is it kind of broad-based?

Speaker #5: Yeah, I think it's I think it's more broad-based. I mean, I don't think we're seeing anything. Yeah, we're seeing good we're honestly seeing really good originations out of everywhere, places we haven't gotten it before.

Chris Navratil: Yeah, I think it's more broad-based. I don't think we're seeing anything.

Brad Elliott: We're honestly seeing really good originations out of everywhere. Places we haven't gotten it before. One of our better credits, C&I credits last quarter was booked out of Southeast Kansas, a $10 million-plus credit. We've never had a $10 million-plus credit out of that area. We got the right banker down there doing the right things, we're seeing credits across the footprint. Rick has done a really good job of building out the team, encouraging his people. Our regional CEOs are doing a good job on getting their people doing the right things, and we're getting the business out of that. It's kind of coming from Western Kansas, Oklahoma, Nebraska. Kansas City's doing great. Wichita team is doing really well. It's kind of across the entire footprint.

Speaker #5: One of our better C&I credits last quarter was booked out of Southeast Kansas, and a $10 million-plus credit—we've never had a $10 million-plus credit out of that area.

Speaker #5: We've got the right banker down there, doing the right things. And so we're seeing credits across the footprint. Rick's done a really good job of building up the team, encouraging his people. Our regional CEOs are doing a good job of getting their people to do the right things.

Speaker #5: And we're getting the business out of that. So it's kind of coming from Western Kansas, Oklahoma, Nebraska, Kansas City's doing great, Wichita team is doing really well.

Speaker #5: So it's kind of across the entire footprint.

Speaker #4: Got it. Okay. Great. And then I appreciate the guidance on the margin, Chris, and the outlook there. How would you characterize the positioning of the margin kind of given a higher for longer interest rate environment and potentially a rate hike either later this year or in the early part of or sometime in 2027?

Damon DelMonte: Got it. Okay, great. I appreciate the guidance on the margin, Chris, and the outlook there. How would you characterize the positioning of the margin, kind of given a higher for longer interest rate environment and potentially, a rate hike either later this year or in the early part of, or sometime in 2027?

Speaker #5: Yeah, Damon, what I'd point to in terms of a rising interest rate environment is really the last cycle we went through. The balance sheet hasn't changed meaningfully from a posturing perspective for rising interest rates.

Chris Navratil: Damon, what I'd point to in terms of a rising interest rate environment is really the last cycle we went through. The balance sheet hasn't changed meaningfully from a posturing perspective for rising interest rates. I think we're positioned to do well in that world. There's always the caveat of what happens in liability pricing and how everybody behaves through that environment. In an upward rate scenario, I think we're well positioned to execute similarly to the last iteration.

Speaker #5: So, I think we're positioned to do well in that world. There's always the caveat of what happens in liability pricing and how everybody behaves through that environment.

Speaker #5: But in an upward rate scenario, I think we're well positioned to execute similarly to the last iteration.

Speaker #4: Okay, great. That's all that I had. Thank you.

Damon DelMonte: Okay, great. That's all that I had. Thank you.

Speaker #3: Your next question comes from the line of Brendan Nosal with HUFDI Group. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Brendan Nosal with Hovde Group. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Brendan Nosal with Hovde Group. Your line is open. Please go ahead.

Speaker #6: Hey, good morning, folks. Hope you're doing well. Let me just start off on hey, good morning. Just starting off here on expenses. Nice to see the run rate come down so much this quarter as well as the improved guide to the back half of the year.

Brendan Nosal: Hey, good morning, folks. Hope you're doing well.

[Company Representative] (Equity Bancshares): Yeah, good morning.

Rick Sems: Yeah, good morning.

Brendan Nosal: Hey, good morning. Just starting off here on expenses. Nice to see the run rate come down so much this quarter, as well as the improved guide for the H2. Just kind of curious, is there anything specific that's driving that improvement? Whether it be some of the AI automation initiatives you spoke to or cost savings from Frontier, or is it more just kind of blocking and tackling as you work through 2026?

Speaker #6: Just kind of curious, is there anything specific that's driving that improvement—whether it be some of the AI automation initiatives you spoke to, or cost savings from Frontier—or is it more just kind of blocking and tackling as you work through 2026?

Chris Navratil: It's heavily the back two there, Brendan. The first thing, and we emphasized it on the prepared comments, is it was really important to us to get Frontier closed and converted in Q1 so we could create some of the visibility to where expenses really should be. A lot of the benefit is coming from getting through that conversion process, realizing the reduction in their technological costs, the people cost associated with managing those systems, et cetera. That's a lot of where you're seeing the benefit. There's obviously still a focus internally on where we can find other opportunities to reduce cost over time. You're seeing a little bit of that come through. As you think about AI technology automation, as Brad mentioned, we're leaning into it. We're working hard on figuring out how it moves the needle for us over time.

Speaker #5: It's heavily the back two there, Brendan. So the first thing—and we emphasized it in the prepared comments—is that it was really important to us to get Frontier closed and converted in Q1 so we could create some of this visibility to where expenses really should be.

Speaker #5: So, a lot of the benefit is coming from getting through that conversion process—realizing the reduction in their technological costs, the people costs associated with managing those systems, etc.

Speaker #5: So that's a lot of where you're seeing the benefit. There's obviously still focus internally on where we can find other opportunities to reduce cost over time.

Speaker #5: So you're seeing a little bit of that come through. As you think about AI technology, automation, as Brad mentioned, we're leaning into it. We're working hard on figuring out how it moves the needle for us over time.

Speaker #5: But there's not tangible benefit to it today where we'd say, as you look at expenses this quarter versus last, it's due to X artificial intelligence benefit.

Chris Navratil: There's not tangible benefit to it today where we'd say, as you look at expenses this quarter versus last, it's due to X artificial intelligence benefit. That is still too early stage, but we're excited about where it can go.

Speaker #5: So that's still too early stage, but we're excited about where it can go.

Speaker #4: Awesome. Okay. That's

Brendan Nosal: Awesome. Okay. That's helpful color. Maybe circling back to the margin for a moment. Can you just talk about the puts and takes in that back half margin outlook that would get you toward either the high end or the low end of the range as you look ahead?

Speaker #6: helpful color. Maybe circling back to the margin for a moment. Can you just talk about the puts and takes in that back half margin outlook that would get you toward either the high end or the low end of the range as you look ahead?

Speaker #5: Yeah, the high-end execution, to me, really lives on the liability side of the balance sheet. So, to the extent that we can maintain and decline liability costs over time—and we've talked about in the past the Frontier accounts that came on board at relatively high costs.

Chris Navratil: Yeah. The high-end execution to me really lives in the liability side of the balance sheet. To the extent that we can maintain and decline liability costs over time, and we've talked about in the past the Frontier accounts that came on board, relatively high cost. There is some tailwind there. If we can execute on declining that liability position, our opportunity on the asset side that we've talked about, Rick talking about loans, we can hit the high end of that margin. On the low end, it's really the alternative, right? As liability costs creep up, we've talked about yield curve kind of moving the other direction on us at the moment. That's the potential to deteriorate a little bit margin over time. It's really that, Brendan.

Speaker #5: So, there is some tailwind there. If we can execute on declining that liability position, and our opportunity on the asset side that we've talked about—Rick's talking about loans—we can hit the high end of that margin.

Speaker #5: The low end, it's really the alternative, right? So, if liability costs creep up—we talked about the yield curve kind of moving the other direction on us at the moment—that has the potential to deteriorate margin a little bit over time.

Speaker #5: So it's really that, Brendan.

Speaker #6: Okay, thanks, Chris. I appreciate you taking my questions.

Brendan Nosal: Okay. Thanks, Chris. I appreciate you taking my questions.

Speaker #3: Your next question comes from the line of Nathan Race with Piper Sandler. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Nathan Race with Piper Sandler. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Nathan Race with Piper Sandler. Your line is open. Please go ahead.

Speaker #7: Hey guys, good morning. Thanks for taking the questions. Curious, maybe Rick, if you can kind of speak to what you see in terms of pricing on new loan production, relative to roughly the 6.50% core loan portfolio yield, and I’m curious if you’re seeing any kind of degradation in new loan yield production, just given that you guys seem to be going up market in terms of clientele these days, to some degree.

Nathan Race: Hey, guys. Good morning. Thanks for taking the questions. Curious maybe, Rick, if you can kind of speak to what you're seeing in terms of pricing on new loan production relative to roughly the 650 kind of core loan portfolio yield, and curious if you're seeing any kind of degradation in new loan yield productions, just given that you guys seem to be going up market in terms of clientele these days to some degree.

Speaker #5: Yeah. So I think on the loan pricing, we're continuing to see it stay fairly strong. We're really disciplined on that. So as a result, that is something that the team takes to heart and goes after.

[Company Representative] (Equity Bancshares): Yeah. I think on the loan pricing, we're continuing to see it stay fairly strong. We're really disciplined on that. As a result, that is something that the team takes to heart and goes after. I'd actually say that maybe we're seeing a little bit of stress there in certain markets. Every once in a while you get an irrational player. In those markets, we choose not to play at that level and kind of decide to go wider. We're not really seeing a lot of downward movement in that. I look at every exception that we have as we run it through the pricing model, and those are not accelerating. It tends to be that we're about the same as we've been over the last two years in those types of exceptions. I think pricing's continued for us to hold firm.

Rick Sems: Yeah. I think on the loan pricing, we're continuing to see it stay fairly strong. We're really disciplined on that. As a result, that is something that the team takes to heart and goes after. I'd actually say that maybe we're seeing a little bit of stress there in certain markets. Every once in a while you get an irrational player. In those markets, we choose not to play at that level and kind of decide to go wider. We're not really seeing a lot of downward movement in that. I look at every exception that we have as we run it through the pricing model, and those are not accelerating. It tends to be that we're about the same as we've been over the last two years in those types of exceptions. I think pricing's continued for us to hold firm.

Speaker #5: So I'd actually say that maybe we're seeing a little bit of stress there in certain markets. Every once in a while, you get an irrational player.

Speaker #5: And in those markets, we choose not to play at that level and kind of decide to go wider. So we're not really seeing a lot of downward movement in that.

Speaker #5: I look at every exception that we have as we run it through the pricing model, and those are not accelerating. So it tends to be that we're about the same as we've been over the last two years with those types of exceptions.

Speaker #5: So I think pricing's continued for us to hold firm.

Speaker #7: Okay, great. That's really helpful. And then, changing gears, I believe you guys have just over 100,000 shares left on the remaining buyback authorization. So just curious if you can kind of speak to the appetite, just given the valuation relative to peers these days, which seems quite low.

Nathan Race: Okay, great. That's really helpful. Changing gears, I believe you guys have just over 100,000 shares left on the remaining buyback authorization. Just curious if you can kind of speak to the aptitude, just given the valuation relative to peers these days, which seems quite low to that end. Just considering you guys are building capital at pretty strong clips and even have existing excess capital currently to maybe pursue some additional acquisition opportunities as well.

Speaker #7: To that end, and just considering you guys are building capital at pretty strong clips, and you even have existing excess capital currently, you may be able to pursue some additional acquisition opportunities as well.

Speaker #5: Yeah. So we always balance the use of capital between share buybacks, making sure we have enough for M&A transactions. We are in conversations with people on the M&A side, so we always want to have enough there.

Brad Elliott: Yeah. We always balance the use of capital between share buyback, making sure we have enough for M&A transactions. We are in conversations with people on the M&A side. We always want to have enough there to be able to perform those transactions. We use a model very similar to what we use on the acquisition side for the buybacks. When we're in range to do buybacks, we think those are no-brainers. There's no integration risk. We'll deploy the capital to do buybacks. It all just depends on what's the earn back on that and does that fit our model or we'll hold the capital looking for M&A opportunities, and we balance those three things at the board meeting. We talk about it at every board meeting, set our target price.

Speaker #5: To be able to perform those transactions, we use a model very similar to what we use on the acquisition side for the buybacks.

Speaker #5: So, when we're in range to do buybacks, we think those are no-brainers. There's no integration risk, so we'll deploy the capital to do buybacks.

Speaker #5: And so it all just depends on what's the earn-back on that and does that fit our model or we'll hold the capital looking for M&A opportunities.

Speaker #5: And we balance those three things at the board meeting we talk about it at every board meeting set our target price. And so we'll always be active in the buyback when it makes sense and we'll be out of it just like we are in the M&A side when it doesn't make sense.

Brad Elliott: We'll always be active in the buyback when it makes sense, and we'll be out of it just like we are in the M&A side when it doesn't make sense. I hope I answered that question vaguely, because we can't really figure it out.

Speaker #5: So, I hope I answered that question—albeit vaguely. You can't really figure it out.

Speaker #7: Yeah. No, I appreciate the various dynamics there, Brad. But if I could just follow up, so it sounds like we shouldn't be surprised if there's an increased authorization at some point, maybe later this year.

Nathan Race: Yeah. No, I appreciate the various dynamics there, Brad. If I could just follow up. It sounds like we shouldn't be surprised if there's an increased authorization at some point maybe later this year.

Speaker #5: Yeah. I think we already have an authorization.

Brad Elliott: Yeah. I think we already have an authorization.

Speaker #2: The board's authorized, and we're waiting on formal approval through the regulatory bodies. But we plan to maintain...

Chris Navratil: The board's authorized it. We're waiting on formal approval through the regulatory bodies, but we plan to maintain.

Brad Elliott: We always plan to maintain a buyback approval from the board. The board's actually already approved that. We're just waiting for standard regulatory approval to up that. We haven't been in a big rush for that because we still have shares available to buy back.

Speaker #5: We'll always have an open we always plan to maintain it buyback approval from the board. The board's actually already approved that. And we're just waiting for standard regulatory approval to up that.

Speaker #5: We haven't been in a big rush for that because we still have shares available to buy back.

Speaker #7: Okay. Great. I appreciate all the color. Thanks, guys.

Nathan Race: Okay, great. I appreciate all the color. Thanks, guys.

Speaker #3: As a reminder, if you would like to ask a question, please press star one to raise your hand. Your next question comes from the line of Matt Olney with Stevens.

Operator 2: As a reminder, if you would like to ask a question, please press star one to raise your hand. Your next question comes from the line of Matt Olney with Stephens. Your line is open. Please go ahead.

Operator: As a reminder, if you would like to ask a question, please press star one to raise your hand. Your next question comes from the line of Matt Olney with Stephens. Your line is open. Please go ahead.

Speaker #3: Your line is open. Please go ahead.

Speaker #8: Hey, thanks, guys. Appreciate you taking the question. Want to circle back on the loan growth discussion and with the paydowns we've seen so far this year.

Matt Olney: Hey, thanks, guys. Appreciate you taking the question. Want to circle back on the loan growth discussion. With the paydowns we've seen so far this year, it sounds like most of this is from the recent acquisitions. Any color you can provide as far as customer retention, employee retention from those deals and how that compared to your internal expectations?

Speaker #8: It sounds like most of this is from the recent acquisitions. Any color you can provide as far as customer retention, employee retention, from those deals and how that compared to your internal expectations?

Speaker #5: Yeah. So I think when we looked at both of these transactions, my expectation is it's exactly kind of what happened. In Nebraska, it's actually better than.

Brad Elliott: Yeah. When we look at both of these transactions, my expectation is it's exactly kind of what happened. In Nebraska, it's actually better than. Parman did a great job of pre-hiring for that market. We already had opened an LPO office there, so we already had boots on the ground. Also we had a lot of color on other people in the marketplace that we might want to talk to. I would say that the Nebraska market is in better shape than actually when we acquired it by quite a bit. The team that we have in Lincoln is very exciting. They all came from larger institutions, and are excited to be back with a company like ours that's big enough to do the deals that they like to do without the complication of working for a $30 billion bank.

Speaker #5: Parman, did a great job of pre-hiring for that market. We already had opened an LPO office there. So we already had boots on the ground.

Speaker #5: But also, we had a lot of color on other people in the marketplace that we might want to talk to. And so I would say that the Nebraska market is in better shape than actually when we acquired it by quite a bit.

Speaker #5: The team that we have in Lincoln is very exciting. They mostly came from larger—they all came from larger institutions—and are excited to be back with a company like ours that's big enough to do the deals that they like to do, without the complication of working for a $30 billion bank.

Speaker #5: And so we're really excited about the team in Omaha and Lincoln Nebraska and how that team is shaping out. We've kept a core group in Omaha with us and we've added to that we probably started with 18 bankers on acquisition day and we are up to 22 bankers.

Brad Elliott: We're really excited about the team in Omaha and Lincoln, Nebraska, and how that team is shaping out. We've kept a core group in Omaha with us, and we've added to that. We probably started with 18 bankers on acquisition day, and we are up to 22 bankers. From an ability to produce, we actually have lots of ability to produce in that market, which is what attracted us to that market to begin with. I think it's playing out exactly as we anticipated. Oklahoma City is kind of the same way. We're continuing to hire bankers in Oklahoma City. The reason to enter these markets, which is what I wanted to do with acquisitions, is it gives us a really core base to build off of. There's core customers there we can expand.

Speaker #5: So, from an ability to produce, we actually have lots of ability to produce in that market, which is what attracted us to that market to begin with.

Speaker #5: And I think it's playing out exactly as we anticipated. Oklahoma City is kind of the same way. We're continuing to hire bankers in Oklahoma City.

Speaker #5: It gives us the reason to enter these markets, which is what I wanted to do with acquisitions. It gives us a really core base to build off of.

Speaker #5: So there's core customers there. We can expand. And it gives us a footprint then to go hire people into. People don't want to work for a loan production office because they don't know if they're truly committed to that market or not.

Brad Elliott: It gives us a footprint to go hire people into. People don't want to work for a loan production office because they don't know if you're truly committed to that market or not. It's hard to get people to work for you in those environments long term without having something to build around. Man, we've got scale in both of those markets now, great reputations in both of those markets. Hiring people into those is an exciting venture. I'm as excited about our organic growth piece as possible. Even more so because of the legacy markets are, I don't know, 25%, 30% better than they were a year ago today.

Speaker #5: So it's hard to get people to work for you in those environments. Long-term without having something to build around. And man, we've got scale in both of those markets now.

Speaker #5: Great reputations in both of those markets. And so hiring people into those is an exciting venture. So I'm as excited about our organic growth piece as possible.

Speaker #5: Even more so, because of the legacy markets are I don't know, 25, 30 percent better than they were a year ago. Today, and you add these new markets on top of it with the acquisitions is great.

Chris Navratil: You add these new markets on top of it with the acquisitions is great, I'll turn it over to Rick.

Speaker #5: And I'll turn it over to Richard.

Speaker #2: Yeah. I was just going to add, Matt, on the customer side of it. One of the things you find in these is there's always these really good core blue-chip customers.

[Company Representative] (Equity Bancshares): Yeah, I was just going to add, Matt, on the customer side of it, one of the things you find in these is there's always these really good core blue-chip customers. What we're then able to do is really expand with them. You don't see that Q1, Q2. That happens over time. You've got some really good customers. We spend a lot of time with them. Those are the ones then that allow you to expand. They've got stuff at numerous other banks. Those are the ones we really are able to go after, and you see that in year two and year three as that expansion really comes into play. Both of these banks, both NBC and Frontier, had some really good core customers that we're looking for significant expansion over time with.

Rick Sems: Yeah, I was just going to add, Matt, on the customer side of it, one of the things you find in these is there's always these really good core blue-chip customers. What we're then able to do is really expand with them. You don't see that Q1, Q2. That happens over time. You've got some really good customers. We spend a lot of time with them. Those are the ones then that allow you to expand. They've got stuff at numerous other banks. Those are the ones we really are able to go after, and you see that in year two and year three as that expansion really comes into play. Both of these banks, both NBC and Frontier, had some really good core customers that we're looking for significant expansion over time with.

Speaker #2: And what we're then able to do is really expand with them. And so that's you don't see that quarter one, quarter two. I mean, but that happens over time.

Speaker #2: So then you've got some really good customers we spend a lot of time with them. Those are the ones then that allow you to expand from a they've got stuff at numerous other banks.

Speaker #2: Those are the ones we really are able to go after, and you see that in year two and year three, as that expansion really comes into play.

Speaker #2: And both of these banks, both NBC and Frontier had some really good core customers that we're looking for significant expansion over time with. So the customer the retention piece of that is on the core customers is really, really strong.

[Company Representative] (Equity Bancshares): The customer, the retention piece of that on the core customers is really, really strong.

Rick Sems: The customer, the retention piece of that on the core customers is really, really strong.

Speaker #8: Okay. Great. I appreciate the color on that topic. And I guess switching back towards the margin outlook, Chris, you've already provided some great color for us for the back half of the year.

Matt Olney: Okay, great. I appreciate the color on that topic. I guess switching back towards the margin outlook, Chris, you've already provided some great color for us for the back half of the year. Any more color on when you think those near-term headwinds are going to moderate? As you think about the margin for 2027, any puts and takes we should be mindful of for that? Thanks.

Speaker #8: Any more color on when you think those near-term headwinds are going to moderate? And as you think about the margin for '27, any puts and takes we should be mindful of for that?

Speaker #8: Thanks.

Speaker #5: Near-term headwinds are moderating. I think there are puts and takes on both sides, where I'd say we have both tailwinds and headwinds operating right now. That range of $425 to $435 is reasonable.

Chris Navratil: Near-term headwinds moderating. I think there's puts and takes on both sides where I'd say we have both tailwinds and headwinds operating right now to where that range 425 to 435 is reasonable, and I think you could hit either end. I'm more optimistic about the 435 side of it. I don't know that there's a specific kind of indicator of challenge today that I'm worried about alleviating. As we look into 2027 to as we get this organic growth engine going, I think you're going to see, over time, maintenance of where we are on a larger earning asset base. I'm optimistic we'll be able to accomplish that as we look out further into 2027, 2028 kind of and beyond.

Speaker #5: And I think you could hit either end. I'm more optimistic about the 435 side of it, but I don't know that there's a specific kind of indicator of challenge today that I'm worried about alleviating.

Speaker #5: As we look into 2027, as we get this organic growth engine going, I think you're going to see, over time, maintenance of where we are on a larger earning asset base.

Speaker #5: And I'm optimistic we'll be able to accomplish that as we look out further into 2027, 2028, kind of and beyond.

Speaker #8: Okay. Thanks, guys.

Matt Olney: Okay. Thanks, guys.

Speaker #1: Your next question comes from the line of Brett Rabattan with StoneX Group. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Brett Rabatin with StoneX Group. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Brett Rabatin with StoneX Group. Your line is open. Please go ahead.

Speaker #8: Hey, guys. Good morning. I wanted to ask on the fee income guidance. I know it's the investor day. You seem pretty excited about the despite where rates are that mortgage banking could be a bigger contributor.

Brett Rabatin: Hey, guys. Good morning. Wanted to ask on the fee income guidance. I know at the investor day you seemed pretty excited about despite where rates are, that mortgage banking could be a bigger contributor. Can we talk maybe about the low end or the high end of the fee income guide and just what drives it to the high end? Could that be mortgage? Would that be other things like trust, wealth? Any thoughts on that?

Speaker #8: Can we talk maybe about the low end of the high end of the fee income guide and just what drives it to the high end?

Speaker #8: Could that be mortgage? Would that be other things like trust, wealth? Any thoughts on that?

Speaker #5: Yeah. Good question, right? The high end of that's driven by continued growth and really all the business lines, right? So as we look to continue to integrate Frontier customers, NBC customers, and looking to at the cost sales cycle on the commercial analysis side, looking at treasury opportunities.

Chris Navratil: Yeah. Good question, Brett. The high end of that's driven by continued growth in really all the business lines. As we look to continue to integrate Frontier customers, NBC customers, and looking to at the call it sales cycle on the commercial and analysis side, looking at treasury opportunities, there's going to be means by which we continue to expand that particular line item. Mortgage banking, Frontier brought a good practice in that world. The interest rates are a challenge today. Brett, as you noted, with the rising yield curves. The challenge of that, the opportunity for us to expand versus stay is a little bit muted. Trust and wealth management continues to grow and provide opportunities. Debit card and credit card income are expanding as we continue to do deeper relationships with those customers.

Speaker #5: There's going to be means by which we continue to expand that particular line item. Mortgage banking or I'm sorry, Frontier brought a good practice in that world.

Speaker #5: The interest rates are a challenge today. Brett, as you noted with the rising yield curve is becoming the challenge of that. The opportunity for us to expand versus stay is a little bit muted.

Speaker #5: But trust and wealth management continue to grow and provide opportunities. Deborah Carter and credit card income are expanding as we continue to deepen relationships with those customers.

Speaker #5: So the high end of that range is just continued trajectory of what we've been doing. And the low end is a function of it could be seasonality.

Chris Navratil: The high end of that range is just continued trajectory of what we've been doing. The low end is a function of, it could be seasonality, it could be mortgage banking going down somewhat with the changing interest rate environment. Tell us what I would point to. I don't know, Rick, if you have anything to add.

Speaker #5: It could be mortgage banking going down somewhat with the changing interest rate environment. So that's what I would point to. I don't really have anything else.

Speaker #2: No. I think that's right. I mean, we've added the people. We've added the strategy on there. I mean, we're seeing on the TM side, for instance, there's just a lot more calls and a lot more opportunities for winning TM business.

[Company Representative] (Equity Bancshares): No. I think that's right. I mean, we've added the people, we've added the strategy on there. We're seeing on the TM side, for instance, there's just a lot more calls and a lot more opportunities for winning TM business. There's just a sort of change in attitude. We're looking at things like waivers and stuff like this. I think that piece will be coming. Chris is absolutely right on the mortgage side. We've got a bigger mortgage production team than we did before, but again, that's one obviously heavily rate-driven.

Rick Sems: No. I think that's right. I mean, we've added the people, we've added the strategy on there. We're seeing on the TM side, for instance, there's just a lot more calls and a lot more opportunities for winning TM business. There's just a sort of change in attitude. We're looking at things like waivers and stuff like this. I think that piece will be coming. Chris is absolutely right on the mortgage side. We've got a bigger mortgage production team than we did before, but again, that's one obviously heavily rate-driven.

Speaker #2: And there's just a sort of change in attitude. So we're looking at things like waivers and stuff like this. So I think that piece will be coming, and Chris is absolutely right on the mortgage side.

Speaker #2: We've got a bigger mortgage production team than we did before. But again, that's one obviously heavily rate driven.

Speaker #8: Okay. That's helpful. And then, Brad, you seem really excited about AI and deploying technology and I'm looking at slide 16. Specifically. And I wanted just to hear maybe what ending you think you're in and adopting AI in terms of what it can do and then just aside from I think there's obvious benefits on loan review, getting things done faster, and credit review.

Brett Rabatin: Okay. That's helpful. Brad, you seem really excited about AI and deploying technology. I'm looking at slide 16 specifically, and wanted just to hear maybe what inning you think you're in in adopting AI, in terms of what it can do. Then just aside from, I think there's obvious benefits on loan review, getting things done faster and credit review, kind of maybe some of the other things that might be coming down the road in terms of efficiency from that perspective.

Speaker #8: Kind of maybe some of the other things that might be coming down the road in terms of efficiency from that perspective.

Speaker #5: I think anybody that says we're not in the first inning or even at bat doesn't realize how much this is going to change the world.

Brad Elliott: I think anybody that says we're not in the first inning or even at bat doesn't realize how much this is going to change the world. I think anybody that says they're on second base probably doesn't realize what the power of this technology trend or change is going to be. I look at this as, I said it in some of my prepared comments. I think it has a lot to do with when I started banking at the bank I started at, we had one PC in the whole institution, and it had two floppy drives in it. Within four years, everyone had one on their desk, and they were all connected through Novell NetWare.

Speaker #5: So I think anybody that says they're on second base probably doesn't realize what the power of this technology trend or change is going to be.

Speaker #5: So I look at this as and I said it in some of my prepared comments. I think it has a lot to do with when I started banking, the bank I started at, we had one PC in the whole institution.

Speaker #5: It had two floppy drives in it. And within four years, everyone had one on their desk. And they were all connected through Novell Network.

Speaker #5: And you could communicate with one another and share files. And all of a sudden, we dropped from eight or 900,000 dollars per employee to a couple million dollars per employee to within five, six years, it was five million dollars per employee.

Brad Elliott: You could communicate with one another and share files. All of a sudden, we dropped from $800,000 or $900,000 per employee to a couple of million dollars per employee. Within five, six years, it was $5 million per employee. Now we're at $10 million per employee is kind of the benchmark. I think we're in a trend where we're going to be doing the same thing over the next three to five years. I think we're all in the beginning phases. I think you're going to see costs coming out of all organizations because of this trend. As a growth company, it's very exciting to me because we've got great people that work for us. It allows us to continue to leverage their abilities as we continue to grow.

Speaker #5: Now we're at $10 million per employee as kind of the benchmark, so I think we're in a trend where we're going to be doing the same thing over the next three to five years.

Speaker #5: And so I think we're all in the beginning phases. And I think you're going to see costs coming out of all organizations because of this trend.

Speaker #5: And so, as a growth company, it's very exciting to me because we've got great people that work for us. It allows us to continue to leverage their abilities as we continue to grow. It probably means we don't need to add as many people as we continue to grow.

Brad Elliott: It probably means we don't need to add as many people as we continue to grow as an organization. Our efficiency ratio continues to get better and better as we continue to grow. I think we listed some things that we actually are using today because they're easy to use on the loan review side, M&A review, headhunter placements, those types of things. I think we're all in the very beginning phases.

Speaker #5: As an organization and our efficiency ratio continues to get better and better, as we continue to grow. So I think we listed some things that we actually are using today.

Speaker #5: And because they're easy to use—on the loan review side, M&A review, headhunter placements, those types of things. But I think we're all in the very beginning phases.

Speaker #8: Okay. That's great cover. Thanks so much, guys.

Brett Rabatin: Okay. That's great color. Thanks so much, guys.

Speaker #1: Your next question comes from the line of Jeff Ruless with DA Davidson. Your line is open. Please go ahead.

Operator 2: Your next question comes from the line of Jeff Rulis with D.A. Davidson & Co.. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Jeff Rulis with D.A. Davidson & Co.. Your line is open. Please go ahead.

Speaker #3: Thanks. Good morning. I wanted to ask about the added non-accrual loans from Frontier. I guess just the question of why weren't those added at the jump in one Q?

Jeff Rulis: Thanks. Good morning. Wanted to ask about the added non-accrual loans from Frontier. I guess just a question of why weren't those added at the jump in Q1? Just kind of speaking to more of the migration, and Rick, I think you talked about the Nebraska optimization of loans there. Just trying to track anything that developed kind of when you closed and from then until now of just pointing to that migration piece.

Speaker #3: And just kind of speaking to more of the migration and Rick, I think you talked about the Nebraska optimization of loans there. Just trying to track anything that developed kind of as when you closed and from then until now of just pointing to that migration piece.

Speaker #5: Yeah. What happens, Jeff, is there are credits that are paying as agreed. We tell the customer we're not going to renew under the current terms.

Brad Elliott: Yeah. What happens, Jeff, is there are credits that are paying as agreed. We tell the customer we're not going to renew under the current terms. There's a little battleground that starts with that. We use that as leverage to start working them out of the bank. Sometimes that flips them to non-accrual during that process of getting them out of the bank. We have them appropriately marked as part of the acquisition but they come across as accrual because they are making payments and accruing. When we don't renew them, then they're not current any longer. It just is something that happens regularly as we work through portfolios and collecting. It's a modest uptick. There's nothing systemic in it. There's a house under construction that we don't think is going the right direction.

Speaker #5: And so there's a little battleground that starts with that. We use that as leverage to start working them out of the bank. Sometimes that flips them to non-accrual.

Speaker #5: During that process of getting them out of the bank, we have them appropriately marked as part of the acquisition. But they come across as accrual because they are making payments and accruing.

Speaker #5: But when we don't renew them, then they're not current any longer. So, it just is something that happens regularly as we work through portfolios and collect things.

Speaker #5: So, it's a modest uptick. There's nothing systemic in it. There's a house under construction that we don't think is going the right direction, and so we wanted to find another bank, find another opportunity, or we're going to work out of the thing.

Brad Elliott: We want them to find another bank, find another opportunity, or we're going to work out of the thing. There's a whole host.

Speaker #5: So I mean, there's a whole. Examples through that process. There's a divorce on an ag. There's a divorce. There's a divorce on an ag deal that causes a problem.

Jeff Rulis: Appreciate it. Yeah

Brad Elliott: of examples through that process.

Jeff Rulis: Okay. Yeah.

Brad Elliott: There's a divorce on an ag deal that causes a problem. There's a whole host of issues that happen in the lending business. That's what we do.

Speaker #5: And there’s a whole host of issues that happen in the lending business, and that’s what we do.

Speaker #3: Yeah. Do you kind of answer the follow-up? It's that those were marked at least on the Frontier side. So appreciate it. And it sounds like the loss content in the forward guide on provisioning unimpacted.

Jeff Rulis: Yeah. You kind of answered the follow-up. Those were marked, at least on the Frontier side. Appreciate it. Sounds like the loss content in the forward guide on provisioning unimpacted. Just a quick follow-up. It sounds like the opportunity on the Frontier side to decrease some of those deposit costs. Is there further there? Has that largely been worked through? Just wanted to get an update on how that's progressed.

Speaker #3: So just a quick follow-up: it sounds like there's an opportunity on the Frontier side to decrease some of those deposit costs.

Speaker #3: Is there further there? Has that largely been worked through? Just wanted to get an update on how that's progressed.

Speaker #5: Yeah. They're all continuing to be some opportunity there, Jeff, over time. So Frontier had a healthy level of, call it, maturing deposits that had laddered maturity.

Chris Navratil: Yeah. There'll continue to be some opportunity there, Jeff, over time. Frontier had a healthy level of maturing deposits that had laddered maturity. We'll continue to see some of that over the next two, three, four quarters. It's there. A lot of it has been worked through, but there is still some opportunity.

Speaker #5: So we'll continue to see some of that over the next two, three, four quarters. So it's there a lot of it has been worked through, but there is still some opportunity.

Speaker #3: Okay. I appreciate it. Thanks.

Jeff Rulis: Okay. I appreciate it. Thanks.

Operator 2: We have reached the end of the question and answer session. This concludes today's call. Thank you for attending. You may now disconnect.

Operator: We have reached the end of the question and answer session. This concludes today's call. Thank you for attending. You may now disconnect.

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