SHARE-BASED PAYMENTS

12 Months Ended

Dec. 31, 2024

Share-Based Payment Arrangement [Abstract]

SHARE-BASED PAYMENTS

NOTE 17 – SHARE-BASED PAYMENTS

The Company’s 2022 Omnibus Equity Plan (the Plan) reserved 760,000 shares for the grant of non-qualified stock options, restricted stock units, restricted stock and unrestricted stock to its employees and directors. The Plan replaced the Amended and Restated 2013 Stock Incentive Plan (2013 Plan). Under the 2013 Plan, there were 148,768 and 271,491 remaining fully vested and exercisable options outstanding at December 31, 2024 and 2023. No new grants of options may be made under the 2013 Plan. The Company believes that stock-based awards better align the interests of its employees with those of its stockholders. Under the Company’s 2024 and 2023 director compensation policy, the directors receive a portion of their compensation in stock.

The following tables summarize the share and expense activity for the directors for the years ended December 31, 2024, and 2023.

	December 31, 2024											December 31, 2023
	Stock Options			Restricted Stock Units		Restricted Stock Awards			Total			Stock Options			Restricted Stock Units			Restricted Stock Awards		Total
Outstanding at beginning of year		56,339			—		15,400			71,739			105,567			10,700			—		116,267
Granted		9,838			—		7,768			17,606			—			—			15,400		15,400
Vested		—			—		(15,400	)		(15,400	)		—			(10,700	)		—		(10,700	)
Exercised		(34,046	)		—		—			(34,046	)		(7,579	)		—			—		(7,579	)
Forfeited or expired		—			—		—			—			(41,649	)		—			—		(41,649	)
Outstanding at end of year		32,131			—		7,768			39,899			56,339			—			15,400		71,739

	December 31, 2024								December 31, 2023
	Stock Options Expense		Restricted Stock Units Expense		Restricted Stock Awards Expense		Total		Stock Options Expense		Restricted Stock Units Expense		Restricted Stock Awards Expense		Total
Granted	$	94	$	—	$	175	$	269	$	—	$	—	$	165	$	165
Vested		—		—		112		112		—		163		—		163
Forfeited or expired		—		—		—		—		—		—		—		—
Outstanding at end of year	$	94	$	—	$	287	$	381	$	—	$	163	$	165	$	328

Stock Option Awards: Options granted to directors and employees under the Plan vest depending on the passage of time or the achievement of performance targets, depending on the terms of the underlying grant.

The following tables summarize stock option activity for the years ended December 31, 2024 and 2023.

December 31, 2024	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at beginning of year		376,446		$	26.71		5	$	2,780
Granted		307,872			31.48		9		3,068
Exercised		(147,777	)		23.73		1		(2,762	)
Forfeited or expired		(41,361	)		32.68		8		(403	)
Outstanding at end of year		495,180		$	30.07		9	$	6,101
Fully vested and expected to vest		495,180		$	30.07		9	$	6,101
Exercisable at end of year		148,768		$	30.37		8	$	1,793

December 31, 2023	Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Outstanding at beginning of year		379,096		$	27.72		4	$	2,118
Granted		101,387			24.41		10		963
Exercised		(12,829	)		15.83		2		(232	)
Forfeited or expired		(91,208	)		31.53		6		(1	)
Outstanding at end of year		376,446		$	26.71		5	$	2,780
Fully vested and expected to vest		376,446		$	26.71		5	$	2,780
Exercisable at end of year		271,491		$	27.40		3	$	1,838

The fair values of stock options granted during the years ended December 31, 2024, 2023, and 2022, were estimated to be $13.06 per share, $9.86 per share, and $11.23 per share. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model. Expected stock price volatility is based on the weighted average of historical volatility of Equity Bank stock and the KBW Nasdaq Bank Index. The expected term of options granted is based on the Simplified Method. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant.

The fair values of options granted were determined using the following weighted-average assumptions as of grant dates.

	2024			2023
Risk free rate		4.28	%		3.67	%
Market value of stock on grant date	$	31.48		$	24.41
Expected term (in years)		7.1			6.2
Expected volatility		34.31	%		33.76	%
Dividend rate		1.29	%		—	%

Compensation expense for stock options is recognized as the options vest. Total stock option compensation cost that has been charged against income was $808, $342, and $260 for 2024, 2023, and 2022. The total income tax benefit was $200, $85 and $64. At December 31, 2024, there was $3,516 of unrecognized compensation expense related to non-vested stock options granted under the Plan. Unrecognized compensation expense at December 31, 2024, will be recognized over a remaining weighted average period of 3.7 years.

Restricted Stock Unit Awards: Restricted stock units (RSUs) granted to employees under the Plan represent the right to receive one share of Company stock upon vesting, in accordance with the vesting schedule provided in each award agreement. To the extent vested, the RSUs become Class A voting common stock within ten calendar days of the vesting date. Non-vested RSUs have no voting rights and are not considered outstanding until vesting. The fair value of the RSUs is determined by the closing price of the Company’s stock on the date of grant.

A summary of changes in the Company’s non-vested RSUs is shown below.

Non-vested Restricted Stock Units	Shares			Weighted Average Grant Date Fair Value
Non-vested RSUs at January 1, 2024		267,975		$	26.19
Granted		148,954			32.87
Vested		(94,298	)		26.25
Forfeited		(45,068	)		29.86
Outstanding at December 31, 2024		277,563		$	30.95
Non-vested Restricted Stock Units	Shares			Weighted Average Grant Date Fair Value
Non-vested RSUs at January 1, 2023		337,250		$	27.35
Granted		152,029			28.68
Vested		(122,420	)		27.72
Forfeited		(98,884	)		27.06
Outstanding at December 31, 2023		267,975		$	26.19

Compensation expense is recognized over the vesting period of the award based on the fair value of RSU awards at the grant date. The Company recognized share-based compensation attributable to RSUs of $2,726, $2,193 and $2,897 for the years ended December 31, 2024, 2023, and 2022. The total income tax benefit was $675, $543 and $719 for the same time periods. Unrecognized RSU compensation expense of $5,589 at December 31, 2024, will be recognized over a remaining weighted average period of 2.8 years.

Restricted Stock Awards: Restricted stock awards (RSAs) granted to employees under the Plan represent the right to receive one share of Company stock upon vesting, in accordance with the vesting schedule provided in each award agreement. To the extent vested, the RSAs become Class A voting common stock within ten calendar days of the vesting date. Non-vested RSAs have no voting rights and are not considered outstanding until vesting. The fair value of the RSAs is determined by the closing price of the Company’s stock on the date of grant.

A summary of changes in the Company's non-vested RSAs is shown below.

Non-vested Restricted Stock Awards	Shares			Weighted Average Grant Date Fair Value
Non-vested RSAs at January 1, 2024		15,400		$	21.44
Granted		7,768			33.49
Vested		(15,400	)		21.44
Forfeited		—			—
Outstanding at December 31, 2024		7,768		$	33.49
Non-vested Restricted Stock Awards	Shares			Weighted Average Grant Date Fair Value
Non-vested RSAs at January 1, 2023		—		$	—
Granted		15,400			21.44
Vested		—			—
Forfeited		—			—
Outstanding at December 31, 2023		15,400		$	21.44

Compensation expense is recognized over the vesting period of the award based on the fair value of RSA awards at the grant date. The Company recognized share-based compensation attributable to RSAs of $286, $218 and $0 for the years ended December 31, 2024, 2023, and 2022. The total income tax benefit was $71, $54 and $0 for the same time periods. Unrecognized RSA compensation expense of $86 at December 31, 2024, will be recognized over a remaining weighted average period of 0.3 years.

Employee Stock Purchase Plan:

On January 27, 2019, the Company’s Board of Directors adopted the Equity Bancshares, Inc. 2019 Employee Stock Purchase Plan (“ESPP”) and reserved 500,000 shares of common stock for issuance. The ESPP was approved by the Company’s stockholders on April 24, 2019. The ESPP enables eligible employees to purchase the Company’s common stock at a price per share equal to 85% of the lower of the fair market value of the common stock at the beginning or end of each offering period. The following table presents the offering periods and costs associated with this program.

Offering Period	Shares Purchased		Cost Per Share		Compensation Expense
August 15, 2021 to February 14, 2022		14,274		27.37		69
February 15, 2022 to August 14, 2022		14,555		27.61		71
August 15, 2022 to February 14, 2023		17,058		26.18		81
February 15, 2023 to August 14, 2023		14,548		22.34		57
August 15, 2023 to February 14, 2024		16,884		21.79		65
February 15, 2024 to August 14, 2024		12,581		28.52		63