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= EQUITY BANK Equity Bancshares , Inc. Results Include Strong Organic Growth While Expanding Kansas Franchise October 19 , 2021 Company's third quarter includes loan growth , exclusive of PPP , accompanying successful integration of largest merger in Company's history and announcement of the Company's first common stock dividend WICHITA , Kan . , Oct. 19 , 2021 ( GLOBE NEWSWIRE ) -- Equity Bancshares , Inc. ( NASDAQ : EQBK ) , ( " Equity " , " the Company " , " we " , " us " , " our " ) , the Wichita - based holding company of Equity Bank , reported net income of $ 11.8 million and $ 0.80 earnings per diluted share for the quarter ended September 30 , 2021. Equity's results occurred as the Company completed its acquisition of American State Bancshares , Inc. on October 1 , 2021 . " As the founder of Equity Bank , our results this quarter are particularly satisfying , as we celebrate continued loan growth , excellent earnings and our first cash stock dividend while simultaneously closing the largest acquisition in our history . I am grateful to our loyal employees and stockholders as we continue to grow and improve Equity Bank , " said Brad S. Elliott , Chairman and CEO of Equity . " I'm pleased with the growth of the Equity Bank brand and the hard work and collaboration of our team members throughout our regions , including our bank employees , lenders , and operations professionals who placed the customer first and executed with open doors , expertise , and availability , " said Mr. Elliott . " We've successfully integrated American State Bank & Trust Company into our platform while continuing to provide momentum , support and expertise to our customers throughout our franchise . " Equity customers successfully had $ 175.7 million of Paycheck Protection Program ( " PPP " ) loans forgiven during the quarter , resulting in the recognition of fee income totaling $ 7.7 million in the three - month period ended September 30 , 2021. At September 30 , 2021 , the total unrecognized fee income associated with PPP loans was $ 3.0 million . " Our entrepreneurial culture drives the efficiency of our merger process , assists in building a solid community banking network that is responsive to a diverse customer base and excels at adding core deposits and new households in a changing environment . Our mission as a community bank is to continue to prioritize local customers , local service , and bankers willing to go above and beyond . As we continue to grow , expand and deliver , our focus will drive value for our shareholders , " said Mr. Elliott . Notable Items : • Diluted earnings per share of $ 0.80 , adjusted to reflect core operating results , was $ 0.96 per diluted share . The adjustments to earnings were comprised of the exclusion of merger expenses of $ 4.0 million , non - accrual interest income of $ 1.4 million , bank - owned life insurance death benefit of $ 486 thousand and additional reserving for repurchase obligations associated with the Company's Federal Deposit Insurance Corporation ( " FDIC " ) assisted transaction of $ 771 thousand . • Linked quarter service fee revenue , including deposit services , mortgage banking , trust and wealth and insurance services increased to $ 6.7 million from $ 6.4 million , or 3.7 % . • The Company authorized a second stock repurchase program in the third quarter of 2020 totaling 800,000 shares . During the quarter ended September 30 , 2021 , the Company repurchased 57,239 shares at a weighted average cost of $ 30.64 per share , totaling $ 1.8 million . At the end of the quarter , capacity of 123,448 shares remained under the current repurchase program . The Board authorized the repurchase of up to an additional 1,000,000 shares of Equity's outstanding common stock , beginning October 29 , 2021 , and concluding October 28 , 2022 , subject to non - objection by the Company's primary regulators . • The Company announced and paid its first common stock dividend of $ 0.08 per share to shareholders of record as of September 30 , 2021 . Equity's Balance Sheet Highlights : • During the quarter total loans decreased from $ 2.82 billion to $ 2.69 billion , including a reduction in PPP assets of $ 175.7 million . Excluding the impact of PPP , organic growth linked quarter was $ 41.8 million , or 7.1 % annualized . • Total deposits of $ 3.66 billion at September 30 , 2021 , as compared to $ 3.69 billion at June 30 , 2021. Checking , savings and money market accounts were $ 3.08 billion at September 30 , 2021 , relative to $ 3.03 billion at June 30 , 2021. As compared to December 31 , 2020 , the Bank has increased non - interest - bearing deposits by $ 192.8 million , or 24.4 % . • As excess liquidity continues to impact the operating environment at quarter end , securities and interest - earning cash and cash equivalents comprise 31.4 % of average earnings assets , up from 28.0 % at the end of the linked quarter and 25.0 % at the end of the comparable quarter in the previous year . Financial Results for the Quarter Ended September 30 , 2021 Net income allocable to common stockholders was $ 11.8 million , or $ 0.80 per diluted share , for the three months ended September 30 , 2021 , as compared to $ 15.2 million , or $ 1.03 per diluted share , for the three months ended June 30 , 2021 , a decrease of $ 3.4 million . This third quarter decrease was attributable to an increase in non - interest expense of $ 4.9 million , an increase in provision for credit losses of $ 2.7 million and a