[Management View]
Equity Bancshares completed mergers with NBC and announced the Frontier Holdings acquisition, expanding its presence into Oklahoma and Nebraska. The company reported a net loss due to bond portfolio repositioning and M&A integration costs. However, adjusted operational earnings showed underlying profitability and an improved net interest margin. Management emphasized the strategic fit and growth potential of the recent acquisitions.

[Outlook]
Guidance for Q4 2025 net interest margin is between 4.4% and 4.5%, with expectations for 2026 including impacts from the Frontier acquisition. Management anticipates mid-single-digit loan growth in 2026, supported by normalized amortization, payoffs, and paydowns. The provision outlook for 2026 reflects a conservative risk posture, excluding day two CECL effects.

[Financial Performance]
- Net loss: $29.7 million, or $1.57 per diluted share, driven by a $53.4 million realized loss from bond portfolio repositioning.
- Adjusted net income: $22.4 million, or $1.17 per diluted share.
- Net interest income: $62.5 million, up $12.7 million from the prior quarter.
- Non-interest income: $8.9 million, up $300,000 from the prior quarter.
- Non-interest expense: $49.1 million; adjusted to $42.9 million.
- Provision for credit losses: $6.2 million.
- Ending TCE ratio: 9.7% at the holding company, 9.9% at the bank level.
- Total risk-based capital ratio: 16.1%.
- Loans: $665 million added from the NBC merger, with loan production of $243 million.
- Deposits: $808 million added from the NBC merger; total deposit growth of $860 million.

[Q&A Highlights]
Question 1: Could you talk about your deposit pricing strategy, especially after the recent Fed rate cut?
Answer: We have been consistent in aligning our deposit rates with FOMC rate cuts. The recent cut was implemented similarly, and we have not seen any significant competitive shifts. Our strategy has yielded positive outcomes without backlash.

Question 2: How is business sentiment in your operating footprint, and how does it impact your loan growth outlook?
Answer: Business sentiment remains strong, with minimal impact from tariffs. Local businesses are absorbing any effects, and we remain bullish on the market outlook.

Question 3: Was the increase in deposit costs due to the NBC acquisition?
Answer: Yes, the increase in deposit costs was entirely attributable to the liabilities brought on through the NBC transaction.

Question 4: What are your expectations for loan growth in 2026, considering payoff activity?
Answer: We expect mid-single-digit loan growth in 2026. Payoff activity, which was higher in 2025, is expected to normalize to the upper teens. Consistent production and new markets like Oklahoma City and Omaha will support growth.

Question 5: Are there any areas of strain in your loan portfolio?
Answer: We are monitoring all areas closely. The food industry and consumer sectors are under pressure, but our exposure is limited. Agriculture loans are well-structured, and we do not anticipate significant issues.

Question 6: How are NBC teams contributing to loan growth?
Answer: NBC teams are starting to take advantage of larger hold limits and expanded products. We have seen positive early indications and expect continued growth as we integrate further.

Question 7: Can you expand on the margin guidance for next year and the impact of potential Fed rate cuts?
Answer: The margin guidance reflects the impact of the Frontier acquisition. We have several levers to manage declining interest rates, including repricing loans and improving the funding mix. Floors in our loan portfolio provide additional protection.

Question 8: Does the 2026 provision outlook include day two CECL effects?
Answer: The provision outlook for 2026 reflects an operating basis only and does not include day two CECL effects.

Question 9: What is the expected ratio of the securities portfolio in the coming quarters?
Answer: The securities portfolio is expected to remain in the mid to high teens, reflecting the additions of NBC and Frontier.

Question 10: How do you view the M&A environment and its impact on your strategy?
Answer: The M&A environment remains favorable, with many opportunities. We will continue to be selective, ensuring that acquisitions fit our earn-back model and strategic goals.

[Sentiment Analysis]
Analysts and management maintained a positive tone, focusing on strategic growth and integration of recent acquisitions. Management expressed confidence in their ability to navigate potential headwinds and achieve growth targets.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 |
|-------------------------------|------------------|------------------|
| Net Loss | $29.7 million | - |
| Adjusted Net Income | $22.4 million | - |
| Net Interest Income | $62.5 million | $49.8 million |
| Non-Interest Income | $8.9 million | $8.6 million |
| Non-Interest Expense | $49.1 million | - |
| Provision for Credit Losses | $6.2 million | - |
| Ending TCE Ratio | 9.7% | - |
| Total Risk-Based Capital Ratio| 16.1% | - |
| Loans | $665 million | - |
| Deposits | $808 million | - |

[Risks and Concerns]
- Increased costs of interest-bearing liabilities and deposits due to the NBC acquisition.
- Potential impact of government shutdowns on the Frontier transaction timeline.
- Economic uncertainties and inflationary pressures affecting various sectors, including food and consumer industries.

[Final Takeaway]
Equity Bancshares navigated a transformational quarter with significant mergers and strategic repositioning. Despite a headline net loss, the company's adjusted earnings and improved net interest margin indicate underlying profitability. Management remains confident in their growth strategy, supported by recent acquisitions and a strong balance sheet. The outlook for 2026 includes mid-single-digit loan growth and a stable margin, with a focus on integrating new markets and managing potential economic headwinds.