Equity Bancshares and Lincoln Bancorp have entered into a definitive merger agreement valued at approximately $123.8 million, expanding Equity Bank’s presence in Iowa. Under the agreement, Lincoln will merge into Equity Bancshares and Lincoln Savings Bank will subsequently merge into Equity Bank.
The transaction will add 16 Iowa locations to Equity’s franchise.
Lincoln shareholders will receive approximately 77.5% of the merger consideration in Equity Bancshares stock and 22.5% in cash.
Based on Equity’s September 2 share price of $49.85, the consideration was valued at approximately $123.8 million.
The merger is expected to close during the fourth quarter of 2026, subject to regulatory and shareholder approvals and other customary closing conditions.
Lincoln Savings Bank was founded in 1902 and had approximately $1.7 billion in assets, $1.2 billion in loans and $1.5 billion in deposits as of June 30.
Equity reported approximately $7.7 billion in assets at the same date. After adjusting for excess liquidity, the combined franchise is expected to have approximately $9.1 billion in total assets.
The transaction is expected to be approximately 5.1%, or $0.27 per share, accretive to Equity’s 2027 EPS and 7.5%, or $0.42 per share, accretive in 2028, excluding one-time transaction expenses.
Expected tangible book value dilution is projected to be earned back in less than three years.
Hovde Group advised Equity, with Norton Rose Fulbright serving as legal counsel. Stephens advised Lincoln Bancorp, with Alston & Bird serving as legal counsel.
KEY QUOTES:
“This partnership marks an important step in our long-term strategy for Iowa. Lincoln has built one of the best community banks in the state through committed service to its communities, customers and team members over its proud 124-year history. This merger brings resources, scale, and enhanced opportunities for the customers and communities we will have the privilege of continuing to serve.”
Brad Elliott, Chairman and CEO of Equity Bancshares
“What people value most about their community bank is what stays the same. This is about giving customers more of what they’ve always counted on from their community bank: local decisions, local people who know their customers by name, and a long-term commitment to the community. By combining our strengths, we’ll have additional resources to invest in local communities and support the initiatives that help them thrive. This year alone, we’ve contributed more than $1.7 million to causes across our markets, and we’re committed to expanding that investment in the years ahead.”
Rick Sems, President and CEO of Equity Bank
“This is a pivotal moment for our institution and our customers. By joining forces with Equity Bank, we’re combining decades of community banking expertise with the scale and resources needed to deliver even greater value, innovation, and stability for the people and businesses we serve. Our teams share a common commitment to relationship-based banking, and together we’ll be even better positioned to invest in the products, technology, and local presence our customers count on.”
Sally Hollis, Board Chair of Lincoln
“Lincoln Savings Bank has always been guided by the dedication of our people and the relationships we’ve built with our customers and communities over the past 124 years. This merger isn’t a departure from that; it’s a way to protect and expand it, while preserving what has always made us special: our people and our shared mission.”
Sean Willett, CEO of Lincoln Savings Bank
