REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 22 – REVENUE RECOGNITION

The majority of the Company’s revenues come from interest income on financial instruments, including loans, leases, securities and derivatives, which are outside the scope of ASC 606. The Company’s services that fall within the scope of ASC 606 are presented with non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of ASC 606 include service charges and fees on deposits, debit card income, investment referral income, insurance sales commissions and other non-interest income related to loans and deposits.

Except for gains or losses from the sale of other real estate owned, all of the Company’s revenue from contracts with customers within the scope of ASC 606 are recognized in non-interest income. The following table presents the Company’s sources of non-interest income for the years ended December 31, 2024, 2023 and 2022.

	2024			2023			2022
Non-interest income
Service charges and fees	$	9,830		$	10,187		$	10,632
Debit card income		10,246			10,322			10,677
Mortgage banking(a)		861			652			1,416
Increase in bank-owned life insurance(a)		4,966			4,059			3,113
Net gain on acquisition and branch sales(a)		2,131			—			962
Net gain (loss) from securities transactions(a)		220			(51,909	)		5
Other non-interest income
Investment referral income		500			424			539
Trust income		1,624			1,123			1,036
Insurance sales commissions		555			582			566
Recovery on zero-basis purchased loans(a)		4,380			517			249
Income (loss) from equity method investments(a)		(87	)		(222	)		(222	)
Other non-interest income related to loans   and deposits		4,084			5,013			6,894
Other non-interest income not related to   loans and deposits(a)		(488	)		123			90
Total other non-interest income		10,568			7,560			9,152
Total	$	38,822		$	(19,129	)	$	35,957
(a) Not within the scope of ASC 606

A description of the Company’s revenue streams accounted for under ASC 606 follows.

Service Charges and Fees

The Company earns fees from its deposit customers for transaction-based account maintenance and overdraft services. Transaction-based fees, which include services such as stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are collected through withdrawal from the customer’s account balance.

Debit Card Income

The Company earns debit card income from cardholder transactions conducted through payment processors. Debit card income from cardholder transactions represents a percentage of the underlying transaction value and is recognized concurrently with the transaction processing services provided to the cardholder.

Investment Referral Income

Investment referral services are offered through an unaffiliated registered broker-dealer and investment advisor. Investment referral income consists of transaction-based fees (i.e., trade commissions) and account fees (i.e., custodial fees). The service obligation for transaction-based fees relates to processing of individual transactions and is considered earned at the time the transaction occurs. The Company currently records this income when payment is received and at each month end for current-month transactions. Account fees are considered earned over the period for which the fees relate. These fees are received during the first month of each quarter and represent advance payment for the current quarter. These fees are amortized ratably over the three months during the quarter. Therefore, all account-based fees are currently recorded as performance obligations are satisfied.

Trust Income

Trust income includes fees from asset management, custody, recordkeeping, investment advisory and administration services. Revenue is recognized at the time the services are performed and may be based on either the fair value of the account or the services provided.

Insurance Sales Commissions

Insurance commissions are received based on contracts with insurance companies which provide for a percentage of premiums to be paid to the Company in exchange for placement of policies with customers. The commissions generally relate to a period of one year or less. Under certain contracts, the Company may also assist with the claims processing, but this performance obligation is considered insignificant compared to the initial placement of the policy. As such, the performance obligation is considered to have been substantially satisfied at the time of policy placement. While this indicates that all related revenue would be appropriately accrued at policy inception, in some cases, recognition occurs over the policy period if received in installments from the insurance

company. In no cases would this deferral extend beyond 12 months and the effect is considered immaterial compared to recognition at the time of policy placement. The Company also receives commissions based on renewals of policies previously placed. However, additional work is required to process the renewals, resulting in future performance obligations to earn the related revenues. In addition, the occurrence of such renewals is not certain as initial policies are generally for one year or less and the fees earned are not determined until the time of renewal, based on underwriting at that time. As such, the Company has determined that accrual of income for future renewals is not appropriate.

Other Non-interest Income

Other non-interest income related to loans and deposits is earned when the specific transaction is processed, similar to service charges and fees.

Gain or Loss on Sale of Other Real Estate

Gain or loss on sale of other real estate is reported in non-interest expense and is netted with other real estate expenses. The Company records a gain or loss from the sale of other real estate when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of other real estate to the buyer, the Company assesses whether the buyer is committed to perform their obligation under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the other real estate is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. As a result, the Company has concluded that ASC 606 will affect the decision to recognize or defer gains on sales of other real estate in circumstances where the Company has financed the sale.

NOTE 23 – SEGMENT REPORTING

Equity Bancshares, Inc. is a financial holding company, whose principal activity is the ownership and management of its wholly-owned subsidiaries, including Equity Bank (“Equity Bank”). As a community-oriented financial institution, substantially all of the Company’s operations involve the delivery of loan and deposit products to customers. Management makes operating decisions and assesses performance based on an ongoing review of these banking operations, which constitute the Company’s only operating segment for financial reporting purposes.

The Company’s chief operating decision maker is comprised of the executive leadership team. For Equity Bancshares Inc., the executive leadership team uses gross profit and profit or loss from operations before interest and income taxes to allocate resources for in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for profit measures when making decisions about allocating capital and personnel to the operating segment. For Equity Bank, the executive leadership team uses net-interest income and non-interest income to allocate resources (including employees, financial, or capital resources) to that segment in the annual budget and forecasting process and uses that measure as a basis for evaluating lending terms for customer loans.

The following tables present information about reported segment revenue, measures of a segment’s profit or loss, significant segment expenses, and measure of a segment’s assets as of December 31, 2024, 2023, and 2022. The Company does not allocate all holding company expenses, income taxes or unusual items to the reportable segment. The following tables present the reconciliations of reportable segment revenues and measures of profit or loss and line item reconciliation to the Company’s consolidated financial statement totals.

				Unallocated Holding
				Company
	Equity Bank			Amounts			Eliminations				Total
Year ended December 31, 2024
Interest and dividend income	$	296,359		$	484		$	—			$	296,843
Interest expense		103,014			7,667			—				110,681
Net interest income		193,345			(7,183	)		—				186,162
Provision (reversal) for credit losses		2,546			—			—				2,546
Net interest income after provision (reversal) for credit losses		190,799			(7,183	)		—				183,616
Non-interest income
Service charges and fees		9,830			—			—				9,830
Debit card income		10,246			—			—				10,246
Mortgage banking		861			—			—				861
Increase in value of bank-owned life insurance		4,966			—			—				4,966
Net gain on acquisition and branch sales		2,131			—			—				2,131
Net gain (loss) from securities transactions		(74	)		294			—				220
Other		10,567			61,562			(61,561	)	(a)		10,568
Total non-interest income		38,527			61,856			(61,561	)			38,822
Non-interest expense
Salaries and employee benefits		72,621			165			—				72,786
Net occupancy and equipment		14,371			—			—				14,371
Data processing		20,003			1			—				20,004
Professional fees		5,642			861			—				6,503
Advertising and business development		5,365			1			—				5,366
Telecommunications		2,501			—			—				2,501
FDIC insurance		2,483			—			—				2,483
Courier and postage		2,599			—			—				2,599
Free nationwide ATM cost		2,127			—			—				2,127
Amortization of core deposit intangibles		4,289			—			—				4,289
Loan expense		601			—			—				601
Other real estate owned and repossessed assets, net		967			(8,492	)		—				(7,525	)
Merger expenses		3,893			568			—				4,461
Other		13,921			(330	)		—				13,591
Intersegment service charges		(1,440	)		1,440			—				—
Total non-interest expense		149,943			(5,786	)		—				144,157
Income (loss) before income tax		79,383			60,459			(61,561	)			78,281
Provision (benefit) for income taxes		18,916			(3,256	)		—				15,660
Total segment profit/(loss)	$	60,467		$	63,715		$	(61,561	)		$	62,621
(a) Elimination of equity in earnings of subsidiary

				Unallocated Holding
				Company
	Equity Bank			Amounts			Eliminations				Total
Year ended December 31, 2023
Interest and dividend income	$	246,082		$	630		$	—			$	246,712
Interest expense		80,016			7,678			—				87,694
Net interest income		166,066			(7,048	)		—				159,018
Provision (reversal) for credit losses		1,873			—			—				1,873
Net interest income after provision (reversal) for credit losses		164,193			(7,048	)		—				157,145
Non-interest income
Service charges and fees		10,187			—			—				10,187
Debit card income		10,322			—			—				10,322
Mortgage banking		652			—			—				652
Increase in value of bank-owned life insurance		4,059			—			—				4,059
Net gain on acquisition and branch sales		—			—			—				-
Net gain (loss) from securities transactions		(51,909	)		—			—				(51,909	)
Other		7,559			15,902			(15,901	)	(a)		7,560
Total non-interest income		(19,130	)		15,902			(15,901	)			(19,129	)
Non-interest expense
Salaries and employee benefits		64,227			157			—				64,384
Net occupancy and equipment		12,325			—			—				12,325
Data processing		17,433			—			—				17,433
Professional fees		5,175			579			—				5,754
Advertising and business development		5,425			—			—				5,425
Telecommunications		1,962			1			—				1,963
FDIC insurance		2,195			—			—				2,195
Courier and postage		2,046			—			—				2,046
Free nationwide ATM cost		2,073			—			—				2,073
Amortization of core deposit intangibles		3,374			—			—				3,374
Loan expense		540			—			—				540
Other real estate owned and repossessed assets, net		617			—			—				617
Merger expenses		—			297			—				297
Other		17,678			(503	)		—				17,175
Intersegment service charges		(1,352	)		1,352			—				—
Total non-interest expense		133,718			1,883			—				135,601
Income (loss) before income tax		11,345			6,971			(15,901	)			2,415
Provision (benefit) for income taxes		(3,311	)		(2,095	)		—				(5,406	)
Total segment profit/(loss)	$	14,656		$	9,066		$	(15,901	)		$	7,821
(a) Elimination of equity in earnings of subsidiary

				Unallocated Holding
				Company
	Equity Bank			Amounts			Eliminations				Total
Year ended December 31, 2022
Interest and dividend income	$	188,248		$	—		$	—			$	188,248
Interest expense		18,622			6,796			—				25,418
Net interest income		169,626			(6,796	)		—				162,830
Provision (reversal) for credit losses		125			—			—				125
Net interest income after provision (reversal) for credit losses		169,501			(6,796	)		—				162,705
Non-interest income
Service charges and fees		10,632			—			—				10,632
Debit card income		10,677			—			—				10,677
Mortgage banking		1,416			—			—				1,416
Increase in value of bank-owned life insurance		3,113			—			—				3,113
Net gain on acquisition and branch sales		962			—			—				962
Net gain (loss) from securities transactions		5			—			—				5
Other		9,127			64,982			(64,957	)	(a)		9,152
Total non-interest income		35,932			64,982			(64,957	)			35,957
Non-interest expense
Salaries and employee benefits		61,852			154			—				62,006
Net occupancy and equipment		12,223			—			—				12,223
Data processing		15,883			—			—				15,883
Professional fees		4,545			406			—				4,951
Advertising and business development		5,042			—			—				5,042
Telecommunications		1,916			—			—				1,916
FDIC insurance		1,140			—			—				1,140
Courier and postage		1,881			—			—				1,881
Free nationwide ATM cost		2,103			—			—				2,103
Amortization of core deposit intangibles		4,042			—			—				4,042
Loan expense		828			—			—				828
Other real estate owned and repossessed assets, net		247			—			—				247
Merger expenses		594			—			—				594
Other		14,436			1,088			—				15,524
Intersegment service charges		(1,296	)		1,296			—				—
Total non-interest expense		125,436			2,944			—				128,380
Income (loss) before income tax		79,997			55,242			(64,957	)			70,282
Provision (benefit) for income taxes		14,633			(2,039	)		—				12,594
Total segment profit/(loss)	$	65,364		$	57,281		$	(64,957	)		$	57,688
(a) Elimination of equity in earnings of subsidiary

	For the Year ended December 31,
	2024							2023									2022
	Equity Bank		Administrative Adjustments			Total		Equity Bank			Administrative Adjustments			Total			Equity Bank		Administrative Adjustments			Total
Depreciation	$	5,391	$	180		$	5,571	$	4,553		$	156		$	4,709		$	4,494	$	148		$	4,642
Amortization of operating lease    right-of-use-asset		475		—			475		604			—			604			714		—			714
Amortization of cloud computing    implementation costs		138		—			138		188			—			188			188		—			188
Amortization of intangible assets		4,408		—			4,408		3,518			—			3,518			4,186		—			4,186
Purchase of long lived assets		12,542		—			12,542		15,762			92			15,854			3,630		—			3,630
Provision (benefit) for income taxes		18,916		(3,256	)		15,660		(3,311	)		(2,095	)		(5,406	)		14,633		(2,039	)		12,594

	December 31,			December 31,
	2024			2023
Assets
Total assets for reportable segments	$	5,316,222		$	5,024,161
Holding company administrative adjustments		703,685			560,434
Elimination of bank cash and equity in earnings of subsidiaries		(107,522	)		(13,515	)
Elimination of investment in subsidiaries		(580,338	)		(536,488	)
Consolidated total assets	$	5,332,047		$	5,034,592