EQBK 10-K & 10-Q changes, risk factors and insider trading

recent negative developments affecting the banking industry, and resulting media coverage, may have erodederode customer confidence in the banking system;

Our financial flexibility would be severely constrained if we were unable to maintain our access to funding or if adequate financing were not available at acceptable interest rates. Further, if we were required to rely more heavily on more expensive funding sources to support liquidity, our revenues may not increase proportionately to cover our increased costs. In this case, our operating margins and profitability would be adversely affected, If alternative funding sources were no longer available to us, we may need to sell a portion of our investment and/or loan portfolio to raise funds, which, depending upon market conditions, could result in us realizing a loss on the sale of such assets. At December 31, 2024,2025, we had a net unrealized lossgain of $56.8$6.1 million, net of tax, on our available for-sale investment securities portfolio.

The Federal Reserve requires a bank holding company to act as a source of financial and managerial strength to its subsidiary banks and to commit resources to support its subsidiary banks. Under the “source of strength” doctrine, the Federal Reserve maycan require a bank holding company to make capital injections into a troubled subsidiary bank at times when the bank holding company may not be inclined to do so and may charge the bank holding company with engaging in unsafe and unsound practices for failure to commit resources to such a subsidiary bank. Accordingly, we could be required to provide financial assistance to our subsidiary, Equity Bank, if it experiences financial distress.

Our principal objective is to continually increase stockholder value and generate consistent earnings growth by expanding our commercial banking franchise both organically and through strategic acquisitions. We believe our strategy of selectively acquiring and integrating community banks has provided us with economies of scale and improved our overall franchise efficiency. We expect to continue to pursue strategic acquisitions and believe our targeted market areas present us with many and varied acquisition opportunities. We are also focused on continuing to grow organically and believe the markets in which we operate currently provide meaningful opportunities to expand our commercial customer base and increase our current market share. We believe our geographic footprint, which is strategically split between growing metropolitan markets, such as Kansas City, TulsaTulsa, Oklahoma City and Wichita, and stable community markets within Southeastern Kansas, Southwestern Kansas, Central Kansas, North Central Kansas, Western Kansas, Topeka, Western Missouri, North Central Missouri, Northern Arkansas, Northern Oklahoma and Western Oklahoma, provides us with access to low cost stable core deposits in community markets that we can use to fund commercial loan growth in our metropolitan markets. We strive to provide an enhanced banking experience for our customers by providing them with a comprehensive suite of sophisticated banking products and services tailored to meet their needs, while delivering the high-quality relationship-based customer service of a community bank.

Dividends declared of $12.3 million, or $0.66 per share, for the year ended December 31, 2025, compared to $8.7 million, or $0.54 per share, for the year ended December 31, 2024, compared to $6.9 million, or $0.44 per share, for the year ended December 31, 2023, an increase of 26.0%41.2% TotalNet loansinterest held for investmentmargin increased to35 $3.50basis billionpoints from 3.98% at December 31, 2024, compared2024 to $3.33 billion4.33% at December 31, 2023, an increase of 5.0%.2025.

Completed twothe mergersacquisition of NBC Corp. of Oklahoma during the year ended December 31, 2024. The first, Rockhold BanCorp,2025, adding $349.8$806.0 million in deposits, eightseven banking locations and new territory to the Equity Bank footprint. The second, Kanasland Bancshares, Inc., adding $42.4 million in deposits and two banking locations.

For the year ended December 31, 2024,2025, there was net income allocable to common stockholders of $62.6$22.7 million, compared to net income allocable to common stockholders of $7.8$62.6 million for the year ended December 31, 2023,2024, ana increasedecrease of $54.8$39.9 million. This change was primarily driven by a $27.1$54.9 increasemillion decrease in netnon interest income, a $58.0 million increase in non interest income offset by a $8.6$30.6 million increase in non interest expense offset by a $39.9 million increase in net interest income and ana increasedecrease in provision for taxes of $21.1$12.0 million. The changes in the components of net income are discussed in more detail below in the following sections of “Results of Operations.”

The increase in net interest income is primarily due to a 991 basis point increasedecrease in yields on interest-earning assets offset by a 5838 basis point increasedecrease in the average cost of interest bearing liabilities. The change in yields and costs were driven, primarily, by athree continued higherFOMC rate environment within the marketplacedecreases creating continued lag re-pricing ofon bothlong term interest earning assets and short term repricing opportunity on the asset and liability portfolios throughout 2024.2025. The asset yield was also positively impacted the volume of interest earning assets and an increase in the yield on taxable securities by the re-positioning of a portion of our investment portfolio in Decemberfiscal year 2025, as well as the completion of 2023.our merger with NBC which added asset purchase accounting accretion. In the final four months of 2025 and 2024, the FOMC reduced short-term interest rates by 100a combined 175 basis points across three meetings. DueThe rate cuts, to their timing, the cuts did notdate, have had a materialmore significant impact on the interest bearing liabilities than interest earning assets in operating results for 2024.results.

Net interest spread increased from 2.88% at December 31, 2023 to 3.29% at December 31, 2024 to 3.66% at December 31, 2025 primarily due to the increase in bothvolume of loans relative to total earning assets and the volume and yieldrealization of interest-earninga assetsgreater out-pacing the increasedecline in the cost and change in volume inof interest-bearing liabilities.liabilities as compared to interest-earning assets. The increase in net interest margin was driven by the additive yield from re-positioning of the investment portfolio, productionthe re-pricing of newliabilities earningoutpacing the re-pricing of assets and the acquisitionincreasing contribution of earningnon-interest assetsbearing indeposits and capital to the currentfunding environment outpacing the continued, lagged re-pricing of liabilities used in funding.mix.

There was a $2.5$9.0 million provision for credit losses for the year ended December 31, 2024,2025, compared to a provision for credit losses of $1.9$2.5 million for the year ended December 31, 2023.2024. The provision for credit losses recorded during the period ended December 31, 2024,2025, is primarily the result of an increase in the loan portfolio,portfolio slower prepayment rates, and net charge-offs duringfrom the periodmerger whichwith were offset by decreases in projected future loss rates and specific reserves on loans individually evaluated for credit loss.NBC.

For additional detail see “Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations – Allowance for Credit Losses.” Net charge-offs for the year ended December 31, 2024,2025, were $3.8$2.5 million as compared to net charge-offs of $4.2$3.8 million for the year ended December 31, 2023.2024. For the year ended December 31, 2024,2025, gross charge-offs were $4.6$5.0 million offset by gross recoveries of $817$2.5 thousand.million. In comparison, gross charge-offs were $5.0$4.6 million for the year ended December 31, 2023,2024, offset by gross recoveries of $754$817 thousand.

Non-interest income, before gain on acquisition and gain or loss on sale of securities, increased 11.3%.1.9%. The increase was driven by recovery on zero-basis purchased loans andthe yield on bank-owned life insurance, the increase in Debit card income and Other non-interest income partially offset by the recovery on zero-basis purchased loans. The decrease in Othergain/loss non-intereston income.securities 'Othertransaction non-interest income' declined primarilywas due to the re-positioning of a $1.1portion millionof reductionour investment portfolio in realizedfiscal reversalsyear of loan repurchase obligations in 2024.2025.

The increase in non-interest expense was primarily due to increases in salaries and employee benefits of $8.4 million, data processing expense of $2.6$12.0 million, net occupancy and equipment expense of $2.0$1.4 million, offsetloss byon aextinguishment decreaseof debt of $1.4 million and Other expenses of $2.4 million. The change in Other real estate owned and repossessed asset was the result of $8.1gain millionon the disposition of a repossessed asset and Otheris expensesnot ofexpected $3.6to million.reoccur. These items and other changes in the various components of non-interest expense are discussed in more detail below.

Salaries and employee benefits: There was a $8.4$12.0 million increase in salaries and benefits for the year ended December 31, 2024,2025, as compared to the year ended December 31, 2023.2024. Salaries and wages increased by $5.3$7.8 million which includes a $2.1$3.7 million related to additional staff from merger activity for the year ended December 31, 2024,2025, as compared to the year ended December 31, 2023.2024. Additionally, for the year ended December 31, 2024,2025, there was an increase in incentivesemployee compensationinsurance of $2.2$1.9 million. Included in salaries and employee benefits is share-based compensation expense of $4.8 million for the year ended December 31, 2025, and $3.5 million for the year ended December 31, 2024, and $2.5 million for the year ended December 31, 2023.2024.

Other real-estate owned: DuringOther real-estate owned increased $8.6 million primarily due to the year, the Company realized a gain on disposition of repossessed assets of $8.5 million during 2024, which drivesis not expected to reoccur. Excluding the annual$8.5 change.million Excludinggain thisin gain,the prior year, other real estate expense would have beenincreased $975 thousand, an increase of $358$54 thousand.

Other: Other non-interest expenses consists of subscriptions, memberships and dues, employee expenses including travel, meals, entertainment and education, supplies, printing, insurance, account related losses, correspondent bank fees, customer program expenses, losses net of gains on the sale of fixed assets, losses net of gains on the sale of repossessed assets other than real estate, other operating expenses, such as settlement of claims, limited partnership tax credits and provision for unfunded commitments. There was a $3.6$2.2 million decreaseincrease in other non-interest expense for the year ended December 31, 2024,2025, as compared to the year ended December 31, 2023.2024. This decreaseincrease was primarily due to a reduction of $3.6$1.2 million in write-offsmiscellaneous of tax credit investments.expenses.

Merger expenses: Merger expenses of $4.5$8.1 million include legal, advisory and accounting fees associated with services to facilitate the acquisition of two banksactivity in 2024.2025. Merger expenses also include data processing conversion costs and costs associated with the integration of personnel, processes, facilities and employee bonuses. During 2023,2024, the Company incurred merger expenses of $297$4.5 thousandmillion related to the Rockhold BanCorp acquisition.and Kansasland acquisitions.

The efficiency ratio is a supplemental financial measure utilized in the internal evaluation of our performance and is not defined under GAAP. Our efficiency ratio is computed by dividing non-interest expense, excluding goodwill impairment, merger expenses and loss on debt extinguishment, by the sum of net interest income and non-interest income, excluding net gains on sales of and settlement of securities and gain on acquisition. Generally, an increase in the efficiency ratio indicates that more resources are being utilized to generate the same volume of income, while a decrease would indicate a more efficient allocation of resources. The ratio defined under GAAP that is most comparable to the efficiency ratio is non-interest expense to net interest income plus non-interest income which is discussed in “Results of Operations – Non-GAAP Financial Measures.” The Company’s efficiency ratio remained largely unchanged in 2025 as compared to 2024.

The effective income tax rate for the year ended December 31, 2025, was 13.9% as compared to the U.S. statutory rate of 21.0%. The effective income tax rate for the year ended December 31, 2024, was 20.0% as compared to the U.S. statutory rate of 21.0%. The effectivereduction incomein the tax rate foryear theover year ended December 31, 2023, was (223.9)% as compared to the U.S. statutory rate of 21.0% as a result of gains recognized on the surrender of BOLI and related penalties offset by tax planning benefits in the prior year, both of which did not recur in the current year, in conjunction with interest income related to federal refunds and creditsother permanent tax benefits in the current year that were amplified by athe year over year reduction in pre-tax book income for the year due to the pre-taxcurrent losses related to theyear sale of bonds.securities. As detailed in “NOTE 13 – INCOME TAXES” in the Notes to Consolidated Financial Statements, the income tax rates differed from the U.S. statutory rates primarily due to non-taxable income, non-deductible expenses, and tax credits. The Company made investments in solar tax credits during the years ended December 31, 20242025 and December 31, 20232024 which had a material impact onimpacted the effective income tax rate for each period. Additionally, the Company recognized tax gains and related penalties on the surrender of Bank Owned Life Insurance (“BOLI”) for the year ended December 31, 2024.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities and are computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position will be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is more likely than not to be realized on examination. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. During the tax year ended December 31, 2024, a Corporate Application for Tentative Refund was filed to carry back excess general business credits from 2023 to 2020, 2021 and 2022 tax years resulting in related interest income net of federal tax expense of $631 which was recorded to income tax expense as a benefit for 2025. There were no material amounts to report for interest or penalties incurred in 2024, 2023,2024 or 2022.2023.

Our total assets increased $297.5$1.04 million,billion, or 5.91%,19.5%, from $5.03 billion at December 31, 2023, to $5.33 billion at December 31, 2024.2024, to $6.37 billion at December 31, 2025. The increase in total assets was primarily from increases in loans, net of allowance for credit losses of $168.2$687.9 million, cash and due from banks of $224.1 million, goodwill of $29.0 million, available for sale securities of $84.8$26.1 million, core deposit intangible of $6.7 million and cashpremises and due from banksequipment of $20.2 million, partially offset by a decrease in federal funds sold of $15.6$19.6 million. Our total liabilities increased $157.4$902.0 million, or 3.44%,19.0%, from $4.58 billion at December 31, 2023, to $4.74 billion at December 31, 2024.2024, to $5.64 billion at December 31, 2025. The increase in total liabilities was from an increaseincreases in total deposits of $229.3$763.5 million, an increase in FHLB advances of $78.1$121.9 million,million partiallyand offsetinterest bypayable aand decreaseother in Federal Reserve Bank borrowingsliabilities of $140.0$15.2 million. Our total stockholders’ equity increased $140.1$139.1 million, or 30.9%,23.5%, from $452.9 million at December 31, 2023 to $592.9 million at December 31, 2024.2024 to $732.1 million at December 31, 2025. The increase in stockholders equity was primarily driven by the increaseincreases in commonpaid stockin capital of $86.9$80.5 million fromand theaccumulated privateother placement stock offering, as well as netcomprehensive income of $62.6$62.2 million, partially offset by an increase in treasury stock repurchase of $11.9 million and dividends paid of $7.9$14.0 million for the year ended December 31, 2024.2025.

Our loan portfolio consists of various types of loans, most of which are made to borrowers located in the Wichita, Kansas City, Oklahoma City and Tulsa MSAs, as well as various community markets throughout Arkansas, Kansas, Missouri and Oklahoma. Although the portfolio is diversified and generally secured by various types of collateral, the majority of our loan portfolio consists of commercial and industrial and commercial real estate loans and a substantial portion of our borrowers’ ability to honor their obligations is dependent on local economic conditions in Arkansas, Kansas, Missouri and Oklahoma.

The organic, or non-acquired, growth in our loan portfolio is attributable to our ability to attract new customers from other financial institutions and overall growth in our markets. Our lending staff has been successful in building banking relationships with new customers. New lenders have been hired in our markets and these employees have been successful in transitioning their former clients and attracting new clients. Lending activities originate from the efforts of our lenders with an emphasis on lending to individuals, professionals, small to medium-sized businesses and commercial companies located in the Wichita, Kansas City, Oklahoma City and Tulsa MSAs, as well as community markets in Arkansas, Kansas, Missouri and Oklahoma.

Nonperforming assets (“NPAs”) include loans on non-accrual status, accruing loans 90 or more days past due, restructured loans, other real estate acquired through foreclosure and other repossessed assets. IncludedThe changes in othernon-accrual repossessedloans assetsand isaccruing theloans gross90 collateralor ofmore adays Mainpast Streetdue Lending loan valued at $4.7 million which the Company owns five percent of the collateral. The change in NPAs iswas due to the Main Street Lending of specific circumstances on specific borrower relationships and not considered indicative of broad declining credit quality as of the reporting date. Included in other repossessed assets as of December 31, 2024 was the gross collateral of a Main Street Lending loan valued at $4.7. This relationship was resolved prior to December 31, 2025, driving the periodic decline. NPAs and classified assets continue to be at historically low levels for the Company.

The nonperforming loans at December 31, 2024,2025, consisted of 323319 separate credits and 270266 separate borrowers. We had fourtwo nonperforming loan relationships each with outstanding balances exceeding $1.0 million as of December 31, 2024.2025. There are several procedures in place to assist us in maintaining the overall quality of our loan portfolio. We have established underwriting guidelines to be followed by lenders and we also monitor delinquency levels for any negative or adverse trends. There can be no assurance, however, that our loan portfolio will not become subject to increasing pressures from deteriorating borrower credit due to general economic conditions.

The $253$9.3 thousandmillion decreaseincrease in the allowance for credit losses was the result of net charge-offs of $3.8$2.5 million, aan reductionincrease in reserves on loans individually evaluated and the continued decline of realized loss rates relative to the full analysis cycle partially offset by an increase in loan balances,balances and purchase accounting for two completed mergers in 2024 and an expansion in quantitative and qualitative reserve on the loanNBC balances collectively evaluated.merger. The allowance for credit losses calculation on loans collectively evaluated at December 31, 2024,2025, totaled $38.4$46.2 million, or 1.1%, of the $3.5$4.1 billion in loans collectively evaluated, compared to an allowance for credit losses of $38.8$38.4 million, or 1.2%,1.1%, of the $3.3$3.5 billion in loans collectively evaluated at December 31, 2023.2024.

Our lending and investing activities are primarily funded by deposits. A variety of deposit accounts are offered with a wide range of interest rates and terms including demand, savings, money market and time deposits. We rely primarily on competitive pricing policies, convenient locations, comprehensive marketing strategy and personalized service to attract and retain these deposits. Overall, deposits have increased $229.3$763.5 million from December 31, 20232024 to December 31, 20242025 and deposits excluding brokered deposits and current year acquisition deposits, have increased $104.2$10.8 million for the same time period. During 20242025 there has been significant competition for deposits and continued pricing pressure which has caused deposit migration to higher earning deposit account types. In addition to competition, theThe overall increase in deposits is due to merger activity,activity partially offset by a general decrease in excess liquidity in the market due to the impacts of elevated inflation and the effects of monetarytrade and fiscal policy, in the form of higher interest rates,rates onlimiting additional growth in both consumer and business customers.

Included in interest-bearing demand deposits are Insured Cash Sweep (“ICS”) reciprocal demand deposit balances of $572.0 million, $469.5 million at December 31, 2024, and $382.6 million at December 31, 2023,2025, 2024 and $282.7 million at December 31, 2022.2023. Also included in savings and money market deposits at December 31, 2025, 2024, 2023, and 2022,2023, are ICS reciprocal money-market deposit balances of $100.6$100.2 million, $230.8$100.6 million, and $17.7$230.8 million. These balances represent customer funds placed in ICS that allow Equity Bank to break large demand and money-market deposits into smaller amounts and place them in a network of other ICS banks to ensure FDIC insurance coverage on the entire deposit. These deposits are placed in ICS but are Equity Bank’s customer relationships that management views as core funding.

Included in interest-bearing demand deposit are brokered deposit balances totaling $0, $75.1 million, $1 thousand, $1 thousand at December 31, 2024,2025, 20232024 and 2022.2023. Also included in time deposits are brokered deposit balances totaling $50.0$70.2 million, $200.0$50.0 million and $251.8$200.0 million at December 31, 2025, 2024, 2023, and 2022.2023.

The total increase in stockholders’ equity of $140.1$139.1 million was principally attributable to increases in additional paid-in-capital of $95.2$80.5 millionmillion, andan retainedincrease earningsin AOCI of $53.9$62.2 million, partially offset by aan increase in treasury stock of $11.9$14.0 million. For additional information about the Company’s capital see "NOTE 12 – STOCKHOLDERS' EQUITY", “NOTE 14 – REGULATORY MATTERS” and "NOTE 17 – SHARE-BASED PAYMENTS" in Notes to Consolidated Financial Statements.

Core Return on Average Equity: Core return on average equity is a non-GAAP measure generally used by financial analysts and investment bankers to evaluate financial institutions. We calculate: (a) average tangible common equity as total average stockholders’ equity less average intangible assets and preferred stock; (b) core net income allocable to common stockholders as net income allocable to common stockholders less net gain on acquisition, less gain (loss) on securities transactions, plus loss on debt extinguishment, plus Day 2 Merger provision expense, plus merger expenses, plus BOLI tax expense, plus goodwill impairment, net of actual tax effect, plus amortization of intangible assets less estimated tax effect on adjustments (tax rates used in this calculation were 21% for 2025, 2024, 2023, 2022, 20212022 and 20202021) (c) core return on average equity as core net income allocable to common stockholders (as described in clause (b)) divided by a simple average of net income and core net income plus average stockholders' equity. For return on average equity, the most directly comparable financial measure calculated in accordance with GAAP is return on average equity.

There have been no material changes in the Company’sour risk factors previously disclosed in our Annual Report on Form 10-K10-K, as amended, filed with the SEC on March 6, 2026.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our Annual Report on Form 10-K10-K, as amended, filed with the SEC on March 6, 2026, and our consolidated financial statements and related notes appearing elsewhere in this Quarterly Report. The following discussion contains “forward-looking statements” that reflect our future plans, estimates, beliefs and expected performance. We caution that assumptions, expectations, projections, intentions or beliefs about future events may, and often do, vary from actual results and the differences can be material. See “Cautionary Note Regarding Forward-Looking Statements.” Also, see the risk factors and other cautionary statements described under the heading “Item 1A: Risk Factors” included in the Annual Report on Form 10-K and in Item 1A of this Quarterly Report. We do not undertake any obligation to publicly update any forward-looking statements except as otherwise required by applicable law.

Critical Accounting PoliciesEstimates – a discussion of accounting policies that require critical estimates and assumptions;

We are a financial holding company headquartered in Wichita, Kansas. Our wholly-owned banking subsidiary, Equity Bank, provides a broad range of financial services primarily to businesses and business owners as well as individuals through our network of 8482 full-service banking sites located in Arkansas, Iowa, Kansas, Missouri, Nebraska and Oklahoma. As of MarchJune 31,30, 2026, we had consolidated total assets of $7.67$7.73 billion, total loans held for investment, net of allowance, of $5.36$5.34 billion, total deposits of $6.30 billion, and total stockholders’ equity of $817.6$827.3 million. During the three and six month periodperiods ended MarchJune 31,30, 2026, the Companywe had net income of $17.0$26.4 million and $43.4 million. The CompanyWe had net income of $15.0$15.3 million and $30.3 million for the three and six month periodperiods ended MarchJune 31,30, 2025.

Critical Accounting PoliciesEstimates

Our significant accounting policies are integral to understanding the results reported. Our accounting policies are described in detail in Note 1 to the December 31, 2025, audited financial statements included in our Annual Report on Form 10-K10-K, as amended, filed with the SEC on March 6, 2026. The preparation of our financial statements in accordance with GAAP requires management to make a number of judgments and assumptions that affect our reported results and disclosures. Several of our accounting policies are inherently subject to valuation assumptions and other subjective assessments and are more critical than others in terms of their importance to results. Changes in any of the estimates and assumptions underlying critical accounting policies could have a material effect on our financial statements. Our accounting policies are described in “NOTE 1 – NATUREBASIS OF OPERATIONSPRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES” in the Notes to Interim Consolidated Financial Statements.

The allowance represents management’s best estimate, but significant changes in circumstances relating to loan quality and economic conditions could result in significantly different results than what is reflected in the consolidated balance sheet as of MarchJune 31,30, 2026. Likewise, an improvement in loan quality or economic conditions may allow for a further reduction in the required allowance. Changing credit conditions would be expected to impact realized losses, driving variability in specifically assessed allowances, as well as calculated quantitative and more subjectively analyzed qualitative factors. Depending on the volatility in these conditions, material impacts could be realized within the Company’sour operations. Significant changes in economic conditions, both positive and negative, could result in unexpected realization of provision or reversal of allowance for credit losses due to its impact on the quantitative and qualitative inputs to the Company’sour calculation. Under the CECL methodology, the impact of these conditions has the potential to further exacerbate periodic differences due to its life of loan perspective. The life of loans calculated under the methodology is based in contractual duration, modified for prepayment expectations, making significant variation in periodic results possible due to changing contractual or adjusted duration of the assets within the calculation.

Goodwill: Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment is recognized and expensed in the period identified. Goodwill will be assessed more frequently if a triggering event occurs which indicates that the carrying value of the asset might be impaired. We have selected December 31 as the date to perform our annual goodwill impairment test. Goodwill is the only intangible asset with an indefinite useful life. For the quarter ended MarchJune 31,30, 2026, management conducted the quarterly qualitative assessment and has determined there was no evidence of a triggering event as of or during the period then ended. Based on this qualitative analysis and conclusion, it was determined that a more robust quantitative assessment was not necessary at our measurement date.

When performing quantitative goodwill impairment assessments, management is required to estimate the fair value of the Company’sour equity in a change in control transaction. To complete this valuation, management is required to derive assumptions related to industry performance, reporting unit business performance, economic and market conditions, and various other assumptions, many of which require significant management judgment.

Changes in interest rates earned on interest-earning assets or incurred on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and non-interest-bearing liabilities and stockholders’ equity, are usually the largest drivers of periodic change in net interest income. Fluctuations in interest rates are driven by many factors, including governmental monetary policies, inflation, deflation, macroeconomic developments, changes in unemployment, the money supply, political and international circumstances and domestic and foreign financial markets. Periodic changes in the volume and types of loans in our loan portfolio are affected by, among other factors, economic and competitive conditions in Arkansas, Iowa, Kansas, Missouri, Nebraska and Oklahoma, as well as developments affecting the consumer, commercial and real estate sectors within these markets.

Three months ended MarchJune 31,30, 2026, compared with three months ended MarchJune 31,30, 2025: Net income allocable to common stockholders for the three months ended MarchJune 31,30, 2026, was $17.0$26.4 million, or $0.80$1.27 diluted earnings per share as compared to $15.0$15.3 million, or $0.85$0.86 diluted earnings per share for the three months ended MarchJune 31,30, 2025, an increase of $1.9$11.2 million. The increase was primarily due to an increase in interest and dividend income of $33.3$33.6 million, partially offset by increases in interest expense of $9.6 million, non-interest expense of $15.9$6.9 million,million interest expense of $10.0 million,and provision for loan losses of $3.2 million and in the provision forincome taxes of $1.5$4.2 million.

Three months ended MarchJune 31,30, 2026, compared with three months ended MarchJune 31,30, 2025: The following table shows the average balance of each principal category of assets, liabilities, and stockholders’ equity and the average yields on interest-earning assets and average rates on interest-bearing liabilities for the three months ended MarchJune 31,30, 2026, and 2025. The yields and rates are calculated by dividing annualized income or annualized expense by the average daily balances of the associated assets or liabilities.

Increases and decreases in interest income and interest expense result from changes in average balances (volume) of interest-earning assets and interest-bearing liabilities, as well as changes in average interest yields/rates. The following table analyzes the change in volume variances and yield/rate variances for the three month periods ended MarchJune 31,30 2026,2026 andfrom June 30, 2025.

Interest income increased $33.3$33.6 million for the quarter ended MarchJune 31,30, 2026, as compared to the quarter ended MarchJune 31,30, 2025. $28.5 million of theThe increase was due to increased volume of average interest earning assets, primarily attributable to the our mergers with Frontier and NBC.NBC Theas averagewell rate/as an improving yield on securitiesearning increasedassets. byThe 113fed bps while the average yield/rate ontarget loansis decreaseddown 35approximately bps,75 resultingbasis inpoints the overall yield/rate on interest-earning assets remaining unchangedas compared to the same2025 periodperiod, but yields have improved driven by a repositioning of the Company's investment portfolio in the priorfourth year.quarter of 2025, accretion of purchase discounts and continued accretive rates on originated credits in the loan portfolio.

During the quarter ended MarchJune 31,30, 2026 when compared to the quarter ended MarchJune 31,30, 2025, net interest margin increased 619 bpbasis points and net interest spread increased by 827 bpbasis points to 3.71%3.77% from 3.63%. The comparative expansion was driven by earning asset dynamics resulting in a consistent yield year over year coupled with market interest rate declines driving a reduction in overall cost of funds.3.50%.

We maintain an allowance for credit losses for estimated losses in our loan portfolio. The allowance for credit losses is increased by a provision for credit losses, which is a charge to earnings, and subsequent recoveries of amounts previously charged-off, but is decreased by charge-offs when the collectability of a loan balance is unlikely. Management estimates the allowance balance required using past loan loss experience within the Company’sour portfolio. This historical loss calculation is then modified to reflect quantitative economic circumstances based on evidenced economic conditions and regression formulas, which incorporate lag factors in identifying a sufficiently predictive adjusted-R square, as well as qualitative factors not inherently reflected in our historical loss or quantitative economic inputs. Included in our qualitative assessment is the consideration of prospective economic conditions over the next 12 months, consideredwhich theis Company’swhat we consider as our reasonable and supportable forecast period. As these factors change, the amount of the credit loss provision changes.

Three months ended MarchJune 31,30, 2026, compared with three months ended MarchJune 31,30, 2025: During the three months ended MarchJune 31,30, 2026, there was a provision for credit losses of $6.0$1.3 million compared to a provision for credit losses of $2.7$19 millionthousand for the three months ended MarchJune 31,30, 2025. TheWe provision for the three months ended is primarily attributable to the establishment of reserves on purchased seasoned loans acquired in the Frontier acquisition. The Company continuescontinue to estimate the allowance for credit losses with assumptions that anticipate slower prepayment rates and continued market disruption caused by the impact of U.S. trade and fiscal policy and the resulting impact on consumers and businesses. Net charge-offs for the three months ended MarchJune 31,30, 2026 and 2025, were $1.4$1.7 million and $165$573 thousand, respectively. For the three months ended MarchJune 31,30, 2026, gross charge-offs were $2.1$3.0 million, offset by gross recoveries of $701$1.3 thousand.million. In comparison, gross charge-offs were $1.1 million for the three months ended MarchJune 31,30, 2025, offset by gross recoveries of $974$545 thousand.

Three months ended MarchJune 31,30, 2026, compared with three months ended MarchJune 31,30, 2025: The following table provides a comparison of the major components of non-interest income for the three months ended MarchJune 31,30, 2026, and 2025.

Total non-interest income decreased $843$531 thousand during the three months ended MarchJune 31,30, 2026, as compared to the same period in 2025. The decrease is due to alosses deathon benefitsecurity thattransactions wasresulting realized during the three months ended March 31, 2025, that did not recur in the current quarter causingfrom a decreasewrite-down inof banka ownedfund life insuranceinvestment of $2.2 million, partially offset by increases in mortgage banking of $377 thousand, debit card income of $613$339 thousand and servicean chargesincrease andin feesvalue of $429bank thousandowned drivenlife byinsurance additionalof customers$302 gained through our mergers with NBC and Frontier.thousand.

Three months ended MarchJune 31,30, 2026, compared with three months ended MarchJune 31,30, 2025: For the three months ended MarchJune 31,30, 2026, non-interest expense totaled $55.0$46.9 million, an increase of $15.9$6.9 million, when compared to the three months ended MarchJune 31,30, 2025. Changes in the various components of non-interest expense for the three months ended MarchJune 31,30, 2026, and 2025, are discussed in more detail in the following table.

Salaries and employee benefits: There was an increase in salaries and employee benefits of $6.3$4.9 million for the period ended MarchJune 31,30, 2026, as compared to the same period in 2025. The increase in employee salaries and wages was due to additional payroll costs as well as an increase in employee insurance expense, which is primarily driven by the increase in staff from the NBC and Frontier mergers.

MergerAmortization expensesof core deposit intangible: There was an increase in merger expensesamortization of $5.7core deposit intangible of $1.2 million for the period ended MarchJune 31,30, 2026, as compared to the same period in 2025. ThisThe increase iswas primarilydriven due toby the completionNBC of theand Frontier merger in the first quarter of 2026.mergers.

Net occupancy and equipment: There was an increase in net occupancy and equipment of $1.1 million for the period ended MarchJune 31,30, 2026, as compared to the same period in 2025. The increase was primarily related to Frontier lease amortization, rent and depreciation.

The efficiency ratio is a supplemental financial measure utilized in the internal evaluation of performance and is not defined under GAAP. For a reconciliation of non-GAAP financial measures see “Non-GAAP Financial Measures” in this Item 2. Our efficiency ratio is computed by dividing non-interest expense, excluding goodwill impairment, merger expenses and loss on debt extinguishment, by the sum of net interest income and non-interest income, excluding net gains or losses on sales of and settlement of securities and gain on acquisition. Generally, an increase in the efficiency ratio indicates that more resources are being utilized to generate the same volume of income, while a decrease would indicate a more efficient allocation of resources.

The efficiency ratio was 56.68%53.38% for the three months ended MarchJune 31,30, 2026, compared with 62.43%63.62% for the three months ended MarchJune 31,30, 2025. The positive trend was driven by increasingrealization netof interestpositive incomeoperating partiallyleverage offset by increased non-interest expense, both primarily attributable tothrough our mergers with NBC and Frontier.Frontier as earnings grew at a faster pace than the expenses required to produce them.

In general, thewe Company recordsrecord income tax expense each quarter based on itsour estimate of the full year’s effective tax rate which includes, in addition to statutory rates, estimated amounts for tax-exempt interest income, non-taxable life insurance income, non-deductible executive compensation, valuation allowance on deferred assets, other non-deductible expense, and federal and state income tax credits anticipated to be available in proportion to anticipated annual income before income taxes. Certain items, however, are given discrete period treatment and the tax effects for such items are therefore reported in the quarter that an event arises. Events or items that may give rise to discrete recognition include excess tax benefits or shortfalls with respect to share-based compensation and changes in tax law.

During the tax year ended December 31, 2024, a Corporate Application for Tentative Refund was filed to carry back excess general business credits from 2023 to the 2020, 2021 and 2022 tax years resulting in a refund of $14.9 million which was received in the second quarter of 2025. Pursuant to Section 6405 of the Internal Revenue Code, refunds in excess of $5 million to a corporate taxpayer must be reviewed by the Joint Committee on Taxation (JCT). Accordingly, the IRS has referred the proposed refund to the JCT and remains under review as of MarchJune 31,30, 2026. While tax years ending 12/31/2020 and 12/31/2021 are closed for audit purposes, tax year ending 12/31/2022 remains open and, under request from the IRS, the statute of limitation has been extended to October 31, 2027.

On July 4, 2025, the United States enacted tax reform legislation through the One Big Beautiful Bill Act, which changes existing U.S. tax laws, including extending or making permanent certain provisions of the Tax Cuts and Jobs Act, repealing certain clean energy initiatives, in addition to other changes. While thewe company isare still evaluating the tax provisions effective in 2026, itwe doesdo not expect them to have a material effect on the company’sour financial statements.

Three months ended MarchJune 31,30, 2026, compared with three months ended MarchJune 3130, 2025: The effective income tax rate for the three monththree-month period ended MarchJune 31,30, 2026,2026 was 23.7% as21.6%, compared towith 20.2%16.9% for the three monththree-month period ended MarchJune 31,30, 2025. The increase in the effective tax rate for the quarter ended March 31, 2026, was primarily driven by a quarter over quarter increase inhigher pre-tax income in the current quarter, which dilutedreduced the relative impact of permanent tax benefits,benefits. aThe detrimentincrease also reflected the absence of certain prior-year items that reduced the effective tax rate in the currentcomparative quarterquarter, related to the remeasurement of deferred state tax assets at a lower state tax rate, and proceeds fromincluding bank-owned life insurance policiesproceeds, receivedinterest income recognized in theincome comparativetax quarterrelated ofto 2025federal thatcarryback didclaims, notand recurtax benefits associated with an investment in thea currentnew quarter.tax credit structure.