REGULATORY MATTERS

6 Months Ended

Jun. 30, 2024

Banking And Thrift Disclosure [Abstract]

REGULATORY MATTERS

NOTE 8 – REGULATORY MATTERS

Banks and bank holding companies (on a consolidated basis) are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The Basel III rules require banks to maintain a Common Equity Tier 1 capital ratio of 6.5%, a total Tier 1 capital ratio of 8%, a total capital ratio of 10% and a leverage ratio of 5% to be deemed “well capitalized” for purposes of certain rules and prompt corrective action requirements. The risk-based ratios include a “capital conservation buffer” of 2.5% which can limit certain activities of an institution, including payment of dividends, share repurchases and discretionary bonuses to executive officers, if its capital level is below the buffer amount. Management believes as of June 30, 2024, the Company and Bank meet all capital adequacy requirements to which they are subject.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as are asset growth and acquisitions, and capital restoration plans are required.

As of June 30, 2024, the most recent notifications from the federal regulatory agencies categorized Equity Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Equity Bank must

maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed Equity Bank’s category.

The Company’s and Equity Bank’s capital amounts and ratios at June 30, 2024, and December 31, 2023, are presented in the table below. The Company was able to take advantage of the accumulated other comprehensive income exception on capital calculations that was made available by regulators in order to maintain strong regulatory ratios. Ratios provided for Equity Bancshares, Inc. represent the ratios of the Company on a consolidated basis.

	Actual					Minimum Required for Capital Adequacy Under Basel III						To Be Well Capitalized Under Prompt Corrective Provisions
	Amount		Ratio			Amount		Ratio				Amount		Ratio
June 30, 2024
Total capital to risk weighted assets
Equity Bancshares, Inc.	$	595,887		14.61	%	$	428,401		10.50	%	$		N/A	N/A
Equity Bank		571,710		14.04	%		427,714		10.50	%			407,437		10.00	%
Tier 1 capital to risk weighted assets
Equity Bancshares, Inc.		477,527		11.70	%		346,801		8.50	%		N/A		N/A
Equity Bank		526,777		12.93	%		346,245		8.50	%			325,877		8.00	%
Common equity Tier 1 capital to risk weighted assets
Equity Bancshares, Inc.		453,758		11.12	%		285,601		7.00	%		N/A		N/A
Equity Bank		526,777		12.93	%		285,143		7.00	%			264,775		6.50	%
Tier 1 leverage to average assets
Equity Bancshares, Inc.		477,527		9.14	%		208,903		4.00	%		N/A		N/A
Equity Bank		526,777		10.11	%		208,473		4.00	%			260,591		5.00	%
December 31, 2023
Total capital to risk weighted assets
Equity Bancshares, Inc.	$	589,131		15.48	%	$	399,729		10.50	%	$	N/A		N/A
Equity Bank		571,938		15.05	%		399,006		10.50	%			380,006		10.00	%
Tier 1 capital to risk weighted assets
Equity Bancshares, Inc.		470,659		12.36	%		323,590		8.50	%		N/A		N/A
Equity Bank		526,793		13.86	%		323,005		8.50	%			304,004		8.00	%
Common equity Tier 1 capital to risk weighted assets
Equity Bancshares, Inc.		447,064		11.74	%		266,486		7.00	%		N/A		N/A
Equity Bank		526,793		13.86	%		266,004		7.00	%			247,004		6.50	%
Tier 1 leverage to average assets
Equity Bancshares, Inc.		470,659		9.46	%		199,112		4.00	%		N/A		N/A
Equity Bank		526,793		10.60	%		198,782		4.00	%			248,477		5.00	%

Equity Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval.