Equity Bancshares: Frontier posts $891K Q4 loss

Equity Bancshares: Frontier posts $891K Q4 loss

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Q: What was Frontier Holdings’ net income in the quarter reported by EQBK?

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What was Frontier Holdings’ net income in the quarter reported by EQBK?

Why did EQBK include Frontier’s financial statements?

Was Frontier Bank categorized as well capitalized?

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8-K Event Classification

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What was Frontier Holdings’ net income in the quarter reported by EQBK?

Why did EQBK include Frontier’s financial statements?

Was Frontier Bank categorized as well capitalized?

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Frontier reported a $891,000 net loss for the three months ended December 31, 2025, compared with net income of $2.928 million for the three months ended December 31, 2024.

Frontier reported a $891,000 net loss for the quarter ended December 31, 2025, versus $2.928 million in net income a year earlier.

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8-K

Equity Bancshares, Inc. (EQBK) submitted Frontier Holdings, LLC’s unaudited consolidated financial statements for the three months ended December 31, 2025, to provide updated Frontier financial information in connection with EQBK’s Form S-4 registration statement for its pending transaction with Lincoln Bancorp. EQBK stated that its merger with Frontier, the holding company of Frontier Bank, was completed effective January 1, 2026.

Frontier reported total interest and dividend income of $21.227 million for the three months ended December 31, 2025, compared with $19.580 million for the same period in 2024; net interest income was $10.922 million versus $9.196 million. It recorded a net loss of $891,000, compared with net income of $2.928 million. Net cash provided by operating activities was $4.177 million versus $4.597 million. At December 31, 2025, Frontier had total assets of $1,432.422 million and deposits of $1,131.715 million. Its subsidiary bank was categorized as well capitalized under the prompt corrective action framework. EQBK stated these statements do not modify or update its own previously reported financial statements.

Minor pointFrontier total interest and dividend income increased to $21.227 million from $19.580 million.

Minor pointFrontier recorded a $891,000 net loss, versus $2.928 million in net income.
Minor pointFrontier operating cash flow declined to $4.177 million from $4.597 million.

2 items: 8.01, 9.01

2 items

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Total interest and dividend income: $21.227 million; $19.580 million Net interest income: $10.922 million; $9.196 million Net income (loss): $891,000 loss; $2.928 million income +3 more

6 metrics

Total interest and dividend income $21.227 million; $19.580 million Three months ended December 31, 2025 and December 31, 2024

Net interest income $10.922 million; $9.196 million Three months ended December 31, 2025 and December 31, 2024

Net income (loss) $891,000 loss; $2.928 million income Three months ended December 31, 2025 and December 31, 2024

Net cash provided by operating activities $4.177 million; $4.597 million Three months ended December 31, 2025 and December 31, 2024

Total assets $1,432.422 million At December 31, 2025

Total deposits $1,131.715 million At December 31, 2025

Allowance for Credit Losses, weighted average remaining maturity, prompt corrective action, Level 3

4 terms

Allowance for Credit Losses financial

"The allowance for credit losses is a valuation account"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

weighted average remaining maturity financial

"A weighted average remaining maturity, or WARM method is used"

prompt corrective action regulatory

"under the regulatory framework for prompt corrective action"

Level 3 financial

"securities are classified as Level 3 of the hierarchy"

Level 3 describes the lowest-confidence category in the accounting “fair value” hierarchy, covering assets or liabilities whose prices are not observable in the market and must be estimated using judgment and internal models. For investors, Level 3 items matter because they can introduce greater uncertainty and potential valuation swings—like valuing a unique antique versus checking a price tag on a supermarket shelf—so they signal higher model risk and lower liquidity.

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Frontier reported a $891,000 net loss for the three months ended December 31, 2025, compared with net income of $2.928 million for the three months ended December 31, 2024.

EQBK included the unaudited statements to provide updated financial information for Frontier in connection with EQBK’s Form S-4 registration statement for its pending transaction with Lincoln Bancorp.

Yes. As of December 31, 2025, Frontier disclosed that its subsidiary bank was categorized as well capitalized under the prompt corrective action framework. Management said it believed no conditions or events since the regulators’ notification had changed the bank’s category.

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Available on EDGAR 10/05/2026 - 06:02 AM Accepted by SEC EDGAR 10/02/2026 - 09:50 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 1, 2026

EQUITY BANCSHARES, INC.

(Exact name of registrant as specified in its charter)


Kansas	001-37624	72-1532188
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)

7701 East Kellogg Drive, Suite 300 Wichita, KS		67207
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: 316. 612.6000

Former name or former address, if changed since last report: Not Applicable

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A, Common Stock, par value $0.01 per share	EQBK	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 8.01

Other Events.

Additional Financial Information

As previously reported, Equity Bancshares, Inc. (“the Company”) completed its merger with Frontier Holdings LLC (“Frontier”), the holding company of Frontier Bank, pursuant to an Agreement and Plan of Reorganization, dated August 29, 2025, by and among the Company, Winston Merger Sub, Inc, and Frontier effective January 1, 2026.

This Current Report on Form 8-K includes the unaudited condensed consolidated financial statements of Frontier as of and for the three month period ended December 31, 2025, which are being filed to comply with Securities and Exchange Commission requirements to provide updated financial statements for Frontier in connection with the filing of the Company’s registration statement on Form S-4 for the Company’s pending transaction with Lincoln Bancorp.

This Current Report on Form 8-K does not modify or update the condensed consolidated financial statements of the Company included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, Quarterly Report on Form 10-Q for the three months ended March 31, 2026 or the Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026.

The historical unaudited consolidated balance sheet of Frontier as of December 31, 2025 and historical audited consolidated balance sheet of Frontier as of September 30, 2025, unaudited consolidated statements of income for the three months ended December 31, 2025 and 2024, unaudited consolidated statements of comprehensive income for the three months ended December 31, 2025 and 2024, unaudited consolidated statements of members’ equity for the period ended December 31, 2025 and audited consolidated statements of members’ equity for the period ended September 30, 2025, and unaudited consolidated statements of cash flows for the three months ended December 31, 2025 and 2024, together with the notes thereto, are filed as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. Management’s discussion and analysis of financial condition and results of operations for such periods are filed as Exhibit 99.2 to this Current Report on Form 8-K and incorporated herein by reference.

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits


Exhibit No.		Description

99.1		Unaudited Consolidated Financial Statement for the Three Months Ended December 31, 2025 for Frontier Holdings LLC

99.2		Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three Months Ended December 31, 2025 for Frontier Holdings LLC

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

Forward-Looking Statements

This Current Report on Form 8-K may contain forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and are intended to be covered by the safe harbor provisions provided by the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements reflect the current views of Equity’s management with respect to, among other things, future events and Equity’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are

reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Factors that could cause actual results to differ materially from the Company’s expectations include competition from other financial institutions and bank holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses; and similar variables. The foregoing list of factors is not exhaustive.

For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 6, 2026, as amended, and any updates to those risk factors set forth in the Company’s subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for us to predict those events or how they may affect us. In addition, the Company cannot assess the impact of each factor on the Company’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this Form 8-K are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit 99.1

Frontier Holdings, LLC

Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Frontier Holdings, LLC

December 31, 2025 and September 30, 2025

Contents


Consolidated Financial Statements

Balance Sheets			1

Statements of Income			3

Statements of Comprehensive Income			4

Statements of Members’ Equity			5

Statements of Cash Flows			6

Notes to Financial Statements			8

Frontier Holdings, LLC

Consolidated Balance Sheets

December 31, 2025 and September 30, 2025

(in thousands)


	(Unaudited) 12/31/2025		(Audited) 9/30/2025
Assets
Cash and due from banks	$	12,819	$	11,021

Cash and cash equivalents		12,819		11,021
Interest-bearing time deposits in banks		100		100
Securities available-for-sale		83,597		84,260
Loans, including loans held for sale of $1,150 and $903 and net of allowance for credit losses of $14,509 and $14,492, respectively		1,288,884		1,276,277
Operating lease right-of-use asset		7,982		8,087
Premises and equipment, net		3,323		3,407
Interest receivable		10,599		10,902
Nonmarketable equity securities, at cost		6,849		6,908
Goodwill		15,213		15,213
Other assets		3,056		4,201

Total assets	$	1,432,422	$	1,420,376

Frontier Holdings, LLC

Consolidated Balance Sheets

December 31, 2025 and September 30, 2025

(in thousands)


	(Unaudited)		(Audited)
	12/31/2025		9/30/2025
Liabilities and Members’ Equity
Liabilities
Deposits
Demand	$	150,112	$	94,637
Demand-interest bearing		398,104		401,962
Savings		39,517		39,950
Time		543,982		558,919

Total Deposits		1,131,715		1,095,468
Short-term borrowings		—		35,000
Federal Home Loan Bank advances		141,135		135,280
Other borrowed funds		22,486		18,618
Operating lease liabilities		8,344		8,426
Interest payable and other liabilities		11,823		8,518

Total liabilities		1,315,503		1,301,310

Members’ Equity
Members’ equity		116,919		119,066

Total members’ equity		116,919		119,066

Total liabilities and members’ equity	$	1,432,422	$	1,420,376

Frontier Holdings, LLC

Consolidated Statements of Income

For the Three Months Ended December 31, 2025 and 2024

(in thousands)


	(Unaudited) 12/31/2025			(Unaudited) 12/31/2024
Interest and Dividend Income
Loans, including fees	$	20,378		$	18,627
Securities		690			783
Federal funds sold and deposits with other financial institutions		159			170

Total interest and dividend income		21,227			19,580

Interest Expense
Deposits		8,432			8,615
Federal funds purchased		352			—
Federal Home Loan Bank advances and other borrowed funds		1,521			1,769

Total interest expense		10,305			10,384

Net Interest Income		10,922			9,196
Provision for Credit Losses
Loans		10			87
Off-balance sheet credit exposures		50			232

Total provision for credit loss expense		60			319

Net Interest Income After Provision for Credit Losses		10,862			8,877

Noninterest income
Net gain on loan sales		339			263
Net realized gain (loss) on available-for-sale securities		—			16
Other		351			326

Total noninterest income		690			605

Noninterest Expense
Salaries and employee benefits		5,973			4,019
Occupancy and equipment		818			772
Other		5,652			1,763

Total noninterest expense		12,443			6,554

Net Income	$	(891	)	$	2,928

Frontier Holdings, LLC

Consolidated Statements of Comprehensive Income

For the Three Months Ended December 31, 2025 and 2024

(in thousands)


	(Unaudited) 12/31/2025			(Unaudited) 12/31/2024
Net Income	$	(891	)	$	2,928

Other Comprehensive Income
Change in unrealized gains (losses) on available-for-sale securities		644			(2,133	)

Comprehensive Income	$	(247	)	$	795

Frontier Holdings, LLC

Consolidated Statements of Members’ Equity

For the Periods Ended December 31, 2025 and September 30, 2025

(in thousands except unit data)


	Members’ Equity				Retained Earnings			Accumulated Other Comprehensive (Loss)			Total
	Units		Amounts		Retained Earnings			Accumulated Other Comprehensive (Loss)			Total
Balance, September 30, 2024 (Audited)	$	43,129	$	56,128	$	62,616		$	(9,399	)	$	109,345
Net income		—		—		2,928			—			2,928
Other comprehensive income		—		—		—			(2,133	)		(2,133	)
Distributions to members		—		—		(500	)		—			(500	)

Balance, December 31, 2024 (Unaudited)		43,129		56,128		65,044			(11,532	)		109,640
Issuance of members’ units		145		443		—			—			443
Net income		—		—		9,974			—			9,974
Other comprehensive income		—		—		—			2,609			2,609
Distributions to members		—		—		(3,600	)		—			(3,600	)

Balance, September 30, 2025 (Audited)		43,274		56,571		71,418			(8,923	)		119,066
Net income		—		—		(891	)		—			(891	)
Other comprehensive income		—		—		—			644			644
Distributions to members		—		—		(1,900	)		—			(1,900	)

Balance, December 31, 2025 (Unaudited)	$	43,274	$	56,571	$	68,627		$	(8,279	)	$	116,919

Frontier Holdings, LLC

Consolidated Statements of Cash Flows

For the Three Months Ended December 31, 2025 and 2024

(in thousands)


	(Unaudited) 12/31/2025			(Unaudited) 12/31/2024
Operating Activities
Net income	$	(891	)	$	2,928

Items not requiring (providing) cash
Depreciation and amortization		145			140
Amortization of operating lease right-of-use asset		106			127
Provision for credit losses		60			319
Amortization and accretion of securities, net		87			99
Net realized (gain) or loss on equity securities		1			(15	)
Net realized gain on sale of other real estate owned		—			(16	)
Changes in
Interest receivable		303			184
Other assets		1,145			1,002
Operating lease liability		(82	)		(101	)
Interest payable and other liabilities		3,303			(70	)

Net cash provided by operating activities		4,177			4,597

Investing Activities
Purchases of securities		(113	)		(366	)
Proceeds from maturities and paydowns of securities		1,334			1,692
Purchases of Federal Home Loan Bank stock		(617	)		(529	)
Redemptions of Federal Home Loan Bank stock		675			1,065
Net changes in loans		(12,667	)		(13,851	)
Purchases of premises and equipment		(61	)		(13	)
Proceeds from sale of foreclosed assets		—			168

Net cash used in investing activities		(11,449	)		(11,834	)

Frontier Holdings, LLC

Consolidated Statements of Cash Flows – Continued

For the Three Months Ended December 31, 2025 and 2024

(in thousands)


	(Unaudited) 12/31/2025			(Unaudited) 12/31/2024
Financings Activities
Net change in deposit accounts	$	36,247		$	21,150
Proceeds from Federal Home Loan Bank advances		147,200			112,700
Repayment of Federal Home Loan Bank advances		(141,345	)		(145,800	)
Proceeds from other borrowed funds		12,767			25,812
Repayment of other borrowed funds		(8,899	)		(3,090	)
Net change in short-term borrowings		(35,000	)		—
Distributions to members		(1,900	)		(500	)

Net cash provided by financing activities		9,070			10,272

Decrease in cash and cash equivalents		1,798			3,035
Cash and cash equivalents, beginning of year		11,021			15,994

Cash and cash equivalents, end of year	$	12,819		$	19,029

Supplemental cash flows information
Interest paid	$	10,771		$	10,826
State deposit taxes paid		(6	)		22

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies

The accompanying unaudited condensed interim consolidated financial statements as of and for the period ended December 31, 2025 have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial information. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the interim statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis and all such adjustments are of a normal recurring nature. These financial statements and the accompanying notes should be read in conjunction with the Company’s audited financial statements for the fiscal year ended September 30, 2025.

Nature of Operations

Frontier Holdings, LLC (“the Company”) is a financial holding company whose principal activity is ownership and management of its wholly-owned subsidiaries.

The consolidated financial statements include the accounts of the Frontier Holdings, LLC and its wholly-owned subsidiaries: Frontier Bank, Omaha, Nebraska (“the Bank”) and FH REM 1, LLC, a real estate holding company.

The Company is engaged in banking services in the midwestern United States, primarily in the state of Nebraska. The Bank is subject to competition from other financial institutions. The Bank is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, its subsidiary, and the subsidiary Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for credit losses and fair values of financial instruments.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies - Continued

Cash and Cash Equivalents

For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash and balances due from banks and federal funds sold, all which have original maturities of three months or less.

Interest-bearing Time Deposits in Banks

Interest-bearing time deposits in banks have original maturities of one to five years and are carried at cost.

Securities

Available for sale securities are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Allowance for Credit Losses – Available-for-Sale Debt Securities

For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more-likely-than-not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through other expense. For available-for-sale securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In such assessment, the Company considers the extent to which fair value is less than amortized cost, if there are any changes to the investment grade of the security by a rating agency, and if there are any adverse conditions that impact the security. If this assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the present value of the cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses (ACL) is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any estimated unrealized losses that have not been recorded through ACL are recognized in other comprehensive income/(loss).

The Company has elected to exclude accrued interest from the estimate of credit losses for available-for-sale debt securities which totaled $425,000 and $422,000 as of December 31, 2025 and September 30, 2025, respectively. As part of its non-accrual policy, the Company charges-off uncollectible interest at the time it is determined to be uncollectable. There were no credit losses for available-for-sale debt securities recorded at December 31, 2025 and September 30, 2025.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies - Continued

Loans Held for Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income, and direct loan origination costs and fees are recognized in noninterest income upon sale of the loan.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for charge-offs and the allowance for credit losses.

The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Past-due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Credit Losses - Loans

The allowance for credit losses is a valuation account that is deducted from loan’s amortized cost basis to present the net amount expected to be collected on loans. The provision for credit losses is charged to income. Credit losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for credit losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and current and forecasted economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies - Continued

Groups of loans with similar risk characteristics are collectively evaluated. Loans that do not share risk characteristics are evaluated on an individual basis. Loans with similar risk characteristics are grouped into homogeneous segments, or pools, for analysis.

A loan is individually evaluated for allowance for credit loss when the loan is assigned a substandard rating and is considered impaired by management. Factors considered by management in determining individual evaluation include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.

A weighted average remaining maturity, or WARM method is used to determine the allowance for credit losses for loan pools. The WARM method requires the use of historic loan loss data across a comparable data set and the application of an adjusted loss rate applied to each loan over their expected remaining term, taking into consideration loan segmentation and expected economic conditions over the relevant timeframe.

Application of the WARM method to estimate a current expected credit loss (CECL) reserve requires judgement, including (i) the appropriate historical loss rate reference data, (ii) the expected timing and amount of future loan fundings and repayments and (iii) the current quality of our portfolio and our expectations of performance and market conditions over the relevant time period. The internal risk rating of each loan is considered the primary credit quality indicator underlying the CECL assessment.

The CECL reserve is measured on a collective basis wherever similar risk characteristics exist within a pool of similar assets. We have identified the following pools and measure the reserve for credit losses based on these identified loan segments.

•

Commercial

•

Commercial Real Estate

•

Residential Real Estate

•

Agricultural

•

Agricultural Real Estate

•

Consumer and Other

In addition, qualitative factors are used that are determined to be relevant in assessing expected credit losses within the loan portfolio. Various risks that may be considered are as follows.

i) Changes in the value of the underlying collateral for loans that are non-collateral dependent.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies - Continued

ii) Actual and expected changes in international, national, regional, and local economic and business conditions and developments that affect the collectability of the loan pools.

iii) Changes in lending policies and procedures, including changes in underwriting standards and practices for collections, write-offs, and recoveries.

iv) Changes in the nature and volume of the loan pools and in the terms of the underlying loans.

v) Changes in the volume and severity of past due financial assets, the volume of nonaccrual assets, and the volume and severity of adversely classified or graded assets.

vi) The existence, growth, and effect of any concentration of credit

vii) Changes in the experience, ability, and depth of our lending management and staff

viii) Changes in the quality of our credit review function

ix) Changes in legal/regulatory environment.

Allowance for Credit Losses - Off-Balance-Sheet Credit Exposures

The allowance for credit losses on off-balance-sheet credit exposure is a liability account, representing expected credit losses over the contractual period for which the company is exposed to credit risk resulting from a contractual obligation to extend credit. Commitments are evaluated in pools under a WARM methodology, similar to what is done for the loan portfolio, while incorporating managements assumptions for funding. No allowance is recognized if the Company has the unconditional right to cancel the obligation. The allowance is reported as a component of interest payable and other liabilities in the consolidated balance sheets. Adjustments to the allowance are reported in the consolidated statement of income as a component of provision for credit loss expense which totaled $50,000 and $232,000 for the periods ended December 31, 2025 and 2024, respectively. The Company has an allowance for credit loss on off-balance-sheet exposure of $435,000 and $385,000 as of December 31, 2025 and September 30, 2025, respectively.

Premises and Equipment

Land is carried at cost. Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies - Continued

Maintenance and repairs, which neither materially add to the value of the property nor appreciably prolong its life are charged to expense as incurred. Gains or losses on dispositions of premises and equipment are included in income.

The estimated useful lives for each major depreciable classification of premises and equipment are as follows:


Buildings and improvements			35-40 years
Leasehold improvements			5-10 years
Furniture and fixtures			3-7 years

Long-Lived Asset Impairment

The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. No asset impairment was recognized during the periods ended December 31, 2025 and 2024.

Nonmarketable Equity Securities

The Company, as a member of one of the Federal Home Loan Banks (FHLB), is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at cost. Management reviews for impairment based on the ultimate recoverability of the cost basis in the FHLB stock.

Foreclosed Assets Held for Sale

Assets acquired through, or in lieu of, loan foreclosure are held for sale (included in other assets) and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in noninterest income or expense.

Goodwill

Goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies - Continued

Income and State Depository Taxes

The Company’s members have elected to have the Company’s income taxed as an “S” Corporation under provisions of the Internal Revenue Code and a similar section of the state income tax laws. Therefore, taxable income or loss is reported to the individual stockholders for inclusion in their respective tax returns and no provision for federal and state income taxes is included in these statements. The provision for income taxes reflected in these statements is for state income taxes only and shown in other noninterest expenses.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets.

Comprehensive Income

Comprehensive income consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes unrealized gains or losses on securities available for sale.

Member Unit Incentive Plan

At December 31, 2025 and 2024, the Company recognizes the calculated price of unit-based awards to employees as compensation over the requisite service period. The unit-based employee compensation plan is described more fully in Note 14.

Revenue Recognition

The Company applies Financial Accounting Standards Board Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) to some of its revenue. The majority of the Company’s revenues come from interest income from securities and loans that are outside the scope of Topic 606. The Company’s services that fall within the scope of Topic 606 are presented within non-interest income in the accompanying statements of income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of Topic 606 include service charges on deposits (e.g., overdraft fees and ATM fees) and the gain on sale of foreclosed assets.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 1:

Nature of Operations and Summary of Significant Accounting Policies - Continued

A description of the Company’s revenue streams accounted for under Topic 606 are as follows:

Deposit Services. The Company generates revenues through fees charged to depositors related to deposit account maintenance fees, overdrafts, ATM fees, wire transfers, and additional miscellaneous services provided at the request of the depositor. For deposit-related services, revenue is recognized when performance obligations are satisfied, which is, generally, at a point in time.

Gains/Losses on Sales of Foreclosed Assets. The Company records a gain or loss from the sale of foreclosed assets 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 foreclosed assets to the buyer, the Company assesses whether the buyer is committed to perform their obligations under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the foreclosed asset is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer.

Reclassifications

Certain reclassifications have been made to the 2024 consolidated financial statements to conform to the 2025 consolidated financial statement presentation. These reclassifications had no effect on net earnings.

Nebraska Department of Banking and Finance Requirements

The audits of the Company were designed to meet the minimum requirements of 45 NAC 25-001 of the Nebraska Department of Banking and Finance for Nebraska.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 2:

Securities

The amortized cost and fair value, with gross unrealized gains and losses at December 31, 2025 and September 30, 2025 are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
12/31/2025 (Unaudited)	(in thousands)
Securities available for sale
U.S. Treasuries	$	17,432	$	—	$	(1,005	)	$	16,427
State and political subdivisions		34,504		—		(5,831	)		28,673
Mortgage-backed (GSE residential/commercial)		39,940		23		(1,466	)		38,497

	$	91,876	$	23	$	(8,302	)	$	83,597

9/30/2025 (Audited)
Securities available for sale
U.S. Treasuries	$	17,470	$	—	$	(1,163	)	$	16,307
State and political subdivisions		34,531		—		(6,230	)		28,301
Mortgage-backed (GSE residential/commercial)		41,182		15		(1,545	)		39,652

	$	93,183	$	15	$	(8,938	)	$	84,260

The carrying value of securities pledged as collateral to secure public deposits and for other purposes, was $19,425,000 and $26,505,000 at December 31, 2025 and September 30, 2025, respectively.

The amortized cost and fair value of available for sale securities by contractual maturity at December 31, 2025 are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Fair Value
	(in thousands)
Within one year	$	2,620	$	2,572
One to five years		20,748		19,435
Five to ten years		8,792		7,581
After ten years		19,776		15,512

		51,936		45,100
Mortgage-backed securities		39,940		38,497

Totals	$	91,876	$	83,597

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 2:

Securities – Continued

For the years ended December 31, 2025 and September 30, 2025 there were no gross gains or gross losses.

Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2025 and September 30, 2025, was $78,671,000 and $80,086,000, respectively, which is approximately 94% and 95%, respectively, of the Company’s available-for-sale investment portfolio.

The following tables show the investment’s gross unrealized losses and fair value of the investments for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2025 and September 30, 2025:


	Less than 12 Months					12 Months or More					Total
Description of Available-for-sale Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
(in thousands)
12/31/2025 (Unaudited)
U.S Treasuries	$	—	$	—		$	16,427	$	(1,005	)	$	16,427	$	(1,005	)
State and political subdivisions		—		—			26,803		(5,831	)		26,803		(5,831	)
Mortgage-backed securities
(GSE residential/commercial)		—		—			35,441		(1,466	)		35,441		(1,466	)

Total temporarily impaired securities	$	—	$	—		$	78,671	$	(8,302	)	$	78,671	$	(8,302	)

9/30/2025 (Audited)
U.S Treasuries	$	—		—		$	16,307	$	(1,163	)	$	16,307	$	(1,163	)
State and political subdivisions		—		—			26,408		(6,230	)		26,408		(6,230	)
Mortgage-backed securities
(GSE residential/commercial)		5		(1	)		37,366		(1,544	)		37,371		(1,545	)

Total temporarily impaired securities	$	5		(1	)	$	80,081	$	(8,937	)	$	80,086	$	(8,938	)

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 2:

Securities – Continued

U. S. Treasury Securities

The unrealized losses on the Company’s investment in U. S. Treasury securities were caused by interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company has not recorded an allowance for credit losses on those investments at December 31, 2025 and September 30, 2025, respectively.

Mortgage-backed Securities

The unrealized losses on the Company’s investment in mortgage-backed securities, including private-labeled mortgage-backed securities, were caused by interest rate changes. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company has not recorded an allowance for credit losses on those investments at December 31, 2025 and September 30, 2025, respectively.

State and Political Subdivisions

The unrealized losses on the Company’s investments in securities of state and political subdivisions were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company has not recorded an allowance for credit losses on those investments at December 31, 2025 and September 30, 2025, respectively.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses

Classes of loans at December 31, 2025 and September 30, 2025, include:


	(Unaudited) 12/31/2025		(Audited) 9/30/2025
	(in thousands)
Commercial	$	158,697	$	165,914
Commercial real estate		498,663		492,330
Residential real estate		386,114		387,101
Agricultural		79,381		68,576
Agricultural real estate		172,035		168,404
Consumer and other		8,503		8,444

Gross loans		1,303,393		1,290,769
Less: Allowance for credit losses		14,509		14,492

Net loans		1,288,884		1,276,277

The following tables present the balance and activity in the allowance for credit losses based on portfolio segment for the periods ended December 31, 2025 and December 31, 2024, respectively, (in thousands):


	Commercial		Commercial Real Estate			Residential Real Estate			Agricultural		Agricultural Real Estate			Consumer and Other			Total
12/31/2025 (Unaudited)
Allowance for Credit Losses
Balance, beginning of year	$	1,898	$	5,562		$	4,279		$	723	$	1,756		$	274		$	14,492
Provision charged to expense		7		25			130			68		(39	)		(181	)		10
Loans charged off		—		(6	)		(4	)		—		—			—			(10	)
Recoveries		2		—			15			—		—			—			17

Balance, end of year	$	1,907	$	5,581		$	4,420		$	791	$	1,717		$	93		$	14,509

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued


	Commercial			Commercial Real Estate			Residential Real Estate		Agricultural		Agricultural Real Estate			Consumer and Other			Total
12/31/2024 (Unaudited)
Allowance for Credit Losses
Balance, beginning of year	$	1,956		$	5,067		$	3,853	$	657	$	1,858		$	105		$	13,496
Provision charged to expense		(52	)		431			231		208		(739	)		8			87
Loans charged off		—			(25	)		—		—		—			(2	)		(27	)
Recoveries		—						—		—		232						232

Balance, end of year	$	1,904		$	5,473		$	4,084	$	865	$	1,351		$	111		$	13,788

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued

Internal Risk Categories

Loan grades are numbered 1 through 8. Grades 1 through 4 are considered satisfactory grades. The grade of 5, or Watch or Special Mention, represents loans of lower quality and is considered criticized. The grades of 6, or Substandard, and 7, or Doubtful, refer to assets that are classified. The use and application of these grades by the Bank will be uniform and shall conform to the Bank’s policy.

Prime (1) loans are of superior quality with excellent credit strength and repayment ability providing a nominal credit risk.

Good (2) loans are of above average credit strength and repayment ability providing only a minimal credit risk.

Satisfactory (3) loans of reasonable credit strength and repayment ability providing an average credit risk due to one or more underlying weaknesses.

Acceptable (4) loans of the lowest acceptable credit strength and weakened repayment ability providing a cautionary credit risk due to one or more underlying weaknesses. New borrowers are typically not underwritten within this classification.

Special Mention (5) assets have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Ordinarily, special mention credits have characteristics which corrective management action would remedy.

Substandard (6) loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful (7) loans classified as doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of current known facts, conditions, and values, highly questionable and improbable.

Loss (8) loans classified as loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off even though partial recovery may be affected in the future.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued

Risk characteristics applicable to each segment of the loan portfolio are described as follows.

Commercial and Financing Leases: The commercial and financing lease portfolios include loans to commercial customers for use in financing working capital needs and equipment purchases and expansions. The loans in this category are repaid primarily from the cash flow of a borrower’s principal business operation. Credit risk in these loans is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations.

Commercial Real Estate: Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values, and the local economies in the Company’s market areas.

Residential Real Estate: The residential 1-4 family real estate loans are generally collateralized by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within the Company’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Agricultural and Agriculture Real Estate: Agricultural and agricultural real estate loans are generally collateralized by livestock, equipment and real estate used for farm production or grazing. Repayment of agricultural loans is dependent on the successful operation or management of the farm property collateralizing the loan. The success of the loan may also be affected by many factors outside the control of the farm borrower. Weather presents one of the greatest risks as hail; drought, floods, or other conditions can severely limit crop yields and thus impair loan repayments and the value of the underlying collateral. This risk can be reduced with a variety of insurance coverages which can help to ensure loan repayment. Government support programs and the Company generally require farm borrowers to procure crop insurance coverage. Grain and livestock prices also present a risk as prices may decline prior to sale resulting in a failure to cover production costs. These risks may be reduced by the farmer with the use of futures contracts or hedges to mitigate price risk.

Consumer and Other: The consumer and other loan portfolios consist of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from borrowers’ income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued

The following tables present the amortized cost basis within each credit quality indicator by year of origination as of December 31, 2025 and September 30, 2025 (in thousands):


(Unaudited) 12/31/2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
Commercial
Risk rating
Pass		21,690		14,503		13,107		5,473		3,378		12,156		79,730		150,037
Watch		—		—		—		59		1,092		415		134		1,700
Substandard		39		37		131		800		943		4,974		36		6,960

Total commercial		21,729		14,540		13,238		6,332		5,413		85,119		12,326		158,697

Commercial real estate
Risk rating
Pass		130,732		48,446		41,343		104,793		48,334		112,004		8,330		493,982
Watch		—		2,161		—		—		—		—		—		2,161
Substandard		—		1,215		—		—		—		—		1,305		2,520

Total commercial real estate		130,732		51,822		41,343		104,793		48,334		8,330		113,309		498,663

Residential real estate
Risk rating
Pass		85,951		57,516		36,337		45,090		49,567		70,338		33,369		378,168
Watch		—		327		860		855		—		1,075		4,270		7,387
Substandard		—		12		389		—		1		—		157		559

Total residential real estate		85,951		57,855		37,589		45,945		49,568		71,413		37,796		386,114

Agriculture
Risk rating
Pass		10,601		1,838		1,948		1,702		397		57,445		3,221		77,152
Watch		39		—		55		19		105		586		38		842
Substandard		45		—		—		—		—		1,292		50		1,387

Total agriculture		10,685		1,838		2,003		1,721		502		59,323		3,309		79,381

Agriculture real estate
Risk rating
Pass		32,073		6,681		12,703		21,672		22,146		24,140		44,753		164,168
Watch		500		—		108		2,699		545		1,342		19		5,213
Substandard		512		882		—		1,226		—		—		34		2,654

Total agriculture real estate		33,085		7,563		12,811		25,597		22,691		25,482		44,806		172,035

Consumer and other
Risk rating
Pass		2,735		1,415		746		1,162		36		1,506		888		8,488
Watch		—		—		—		—		—		—		15		15
Substandard		—		—		—		—		—		—		—		—

Total consumer and other		2,735		1,415		746		1,162		36		1,506		903		8,503

Total loans
Risk rating
Pass		283,782		130,399		106,184		179,892		123,858		241,489		206,391		1,271,995
Watch		539		2,488		1,023		3,632		1,742		3,418		4,476		17,318
Substandard		596		2,146		520		2,026		944		6,266		1,582		14,080

Total loans		284,917		135,033		107,727		185,550		126,544		251,173		212,449		1,303,393

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued


(Audited) 9/30/2025	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
Commercial
Risk rating
Pass		14,919		16,720		18,763		5,941		3,854		13,954		82,194		156,345
Watch		—		—		—		74		1,130		—		415		1,619
Substandard		41		39		135		874		1,006		35		5,820		7,950

Total commercial		14,960		16,759		18,898		6,889		5,990		13,989		88,429		165,914

Commercial real estate
Risk rating
Pass		91,593		55,391		45,759		110,956		51,911		121,503		9,955		487,068
Watch		—		2,161		—		—		—		—		—		2,161
Substandard		—		1,215		—		—		—		1,886		—		3,101

Total commercial real estate		91,593		58,767		45,759		110,956		51,911		123,389		9,955		492,330

Residential real estate
Risk rating
Pass		60,082		68,836		38,181		51,424		51,336		36,333		72,494		378,686
Watch		—		331		860		721		—		4,309		1,075		7,296
Substandard		—		11		389		561		1		157		—		1,119

Total residential real estate		60,082		69,178		39,430		52,706		51,337		40,799		73,569		387,101

Agriculture
Risk rating
Pass		4,017		3,102		2,370		2,207		680		3,230		50,506		66,112
Watch		74		—		55		21		169		63		620		1,002
Substandard		45		35		—		8		8		74		1,292		1,462

Total agriculture		4,136		3,137		2,425		2,236		857		3,367		52,418		68,576

Agriculture real estate
Risk rating
Pass		27,416		7,062		13,706		21,909		22,355		46,348		21,776		160,572
Watch		500		—		108		2,699		545		19		1,306		5,177
Substandard		512		882		—		1,226		—		35		—		2,655

Total agriculture real estate		28,428		7,944		13,814		25,834		22,900		46,402		23,082		168,404

Consumer and other
Risk rating
Pass		1,882		1,652		821		1,262		63		904		1,860		8,444
Watch		—		—		—		—		—		—		—		—
Substandard		—		—		—		—		—		—		—		—

Total consumer and other		1,882		1,652		821		1,262		63		904		1,860		8,444

Total loans
Risk rating
Pass		199,909		152,763		119,600		193,699		130,199		222,272		238,785		1,257,227
Watch		574		2,492		1,023		3,515		1,844		4,391		3,416		17,255
Substandard		598		2,182		524		2,669		1,015		2,187		7,112		16,287

Total loans		201,081		157,437		121,147		199,883		133,058		228,850		249,313		1,290,769

The Company evaluates the loan risk grading system definitions on an ongoing basis. No significant changes were made during 2025.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued

The following tables present the Company’s loan portfolio aging analysis as of December 31, 2025 and September 30, 2025 (in thousands):


(Unaudited) 12/31/2025	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans
Commercial	$	83	$	340	$	1,416	$	1,839	$	156,859	$	158,697
Commercial real estate		494		—		105		599		498,064		498,663
Residential real estate		5,387		—		5,353		10,740		375,373		386,114
Agriculture		—		—		—		—		79,381		79,381
Agriculture real estate		—		—		—		—		172,035		172,035
Consumer and other		18		—		—		18		8,485		8,503

Total	$	5,982	$	340	$	6,874	$	13,196	$	1,290,197	$	1,303,393


(Audited) 9/30/2025	30-59 Days Past Due		60-90 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans
Commercial	$	15	$	1,240	$	142	$	1,397	$	164,517	$	165,914
Commercial real estate		1,315		—		1,873		3,188		489,142		492,330
Residential real estate		8,060		222		961		9,243		377,858		387,101
Agriculture		74		43		—		117		68,459		68,576
Agriculture real estate		—		—		—		—		168,404		168,404
Consumer and other		80		—		—		80		8,364		8,444

Total	$	9,544	$	1,505	$	2,976	$	14,025	$	1,276,744	$	1,290,769

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued

The following table presents the Company’s nonaccrual loans at December 31, 2025 and September 30, 2025 (in thousands).


(Unaudited) 12/31/2025	Nonaccrual Loans Without a Specific Reserve		Total Nonaccrual		Loans Past Due Over 89 Days and Still Accruing
Commercial	$	1,415	$	1,415	$	—
Commercial real estate		—		—		105
Residential real estate		4,631		4,643		861
Agriculture		—		—		—
Agriculture real estate		—		—		—
Consumer and other		—		—		—

	$	6,046	$	6,058	$	966


(Audited) 9/30/2025	Nonaccrual Loans Without a Specific Reserve		Total Nonaccrual		Loans Past Due Over 89 Days and Still Accruing
Commercial	$	142	$	142	$	—
Commercial real estate		1,873		1,873		—
Residential real estate		1,111		1,111		—
Agriculture		51		51		—
Agriculture real estate		—		—		26
Consumer and other		4		4		—

	$	3,181	$	3,181	$	26

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 3:

Loans and Allowance for Credit Losses - Continued

The following tab presents the amortized cost basis of collateral-dependent loans as of December 31, 2025 and September 30, 2025, respectively, by collateral type (in thousands).


2025	Real Estate		12/31/2025 (Unaudited) Business Assets		Total
Commercial	$	—	$	1,179	$	1,179
Commercial real estate		—		—		—
Residential real estate		4,637		—		4,637
Agriculture		—		—		—
Agriculture real estate		34		—		34
Consumer and other		—		—		—

	$	4,671	$	1,179	$	5,850


2024	Real Estate		9/30/2025 (Audited) Business Assets		Total
Commercial	$	—	$	1,229	$	1,229
Commercial real estate		1,873		—		1,873
Residential real estate		1,108		—		1,108
Agriculture		—		51		51
Agriculture real estate		35		—		35
Consumer and other		—		—		—

	$	3,016	$	1,280	$	4,296

The Company had no loans at December 31, 2025 and September 30, 2025 that were modified with borrowers having financial difficulty.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 4:

Leases

The Company leases certain office space in various cities in Nebraska. The company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets, and operating lease liabilities on the consolidated balance sheets. The Company leases for office space expire in various years through 2041. These leases generally contain renewal options for periods ranging from 5-10 years and require the Company to pay all executory costs (property taxes, maintenance, and insurance). Lease payments have an escalating fee schedule, which range from a 2% to 5% increase each year. Termination of the leases is generally prohibited unless there is a violation under the lease agreement.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain the Company will exercise this option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has no material related party leases. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In determining the discount rate used to measure the right-of-use asset and lease liability, the Company uses rates implicit in the lease, or if not readily available, the Company uses its incremental borrowing rate based on information available at the commencement date of the lease to determine the present value of lease payments. Incremental borrowing rates were used to determine the present value of lease payments and were derived by utilizing the FHLB long term debt rates, corresponding to lease commencement date and estimated term, which are similar to the Company’s secured debt yields.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 4:

Leases - Continued

The lease cost and other required information for the three month periods ended December 31, 2025 and 2024 are:


	(Unaudited) 12/31/2025		(Unaudited) 12/31/2024
	(in thousands)
Lease Cost
Operating lease cost	$	221	$	225
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	198	$	199

Future minimum lease payments under non-cancellable leases as of December 31, 2025 were as follows:


Period Ending December 31,	(in thousands)
2026	$	814
2027		836
2028		850
2029		864
2030		879
Thereafter		7,886

Total future minimum lease payments	$	12,129
Less imputed interest		3,785

Lease liabilities	$	8,344

The weighted average remaining lease term for operating leases as of December 31, 2025 (unaudited) and September 30, 2025 (audited) were 14 years and 14 years, respectively. The weighted average discount rate on operating leases as of December 31, 2025 (unaudited) and September 30, 2025 (audited) were 5.51% and 5.51%, respectively.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 5:

Premises and Equipment

A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2025 and September 30, 2025 is as follows:


	(Unaudited) 12/31/2025			(Audited) 9/30/2025
	(in thousands)
Land	$	306		$	306
Buildings and improvements		2,884			2,842
Furniture and fixtures		4,701			4,683
Leasehold improvements		2,206			2,206

		10,097			10,037
Less accumulated depreciation and amortization		(6,774	)		(6,630	)

Net premises and equipment	$	3,323		$	3,407

Note 6:

Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2025 and September 30, 2025 were:


	(Unaudited) 12/31/2025		(Audited) 9/30/2025
	(in thousands)
Balance, October 1
Goodwill	$	15,213	$	15,213

Balance, December 31	$	15,213	$	15,213

Note 7:

Time Deposits

Time deposits in denominations of greater than $250,000 totaled $87,906,000 and $84,698,000 at December 31, 2025 and September 30, 2025, respectively.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 7:

Time Deposits - Continued

At December 31, 2025 (unaudited), the scheduled annual maturities of time deposits (in thousands) are as follows:


2026	$	356,077
2027		81,177
2028		34,373
2029		19,400
2030		18,283
Thereafter		34,672

	$	543,982

Brokered and reciprocal deposits totaled approximately $407,465 and $406,039 at December 31, 2025 and September 30, 2025, respectively.

Note 8:

Borrowed Funds

Borrowed funds at December 31, 2025 and September 30, 2025 consist of the following:


	(Unaudited) 12/31/2025		(Audited) 9/30/2025
	(in thousands)
Long-term Federal Home Loan Bank advances	$	99,635	$	100,580
Lines of credit with Federal Home Loan Bank		41,500		34,700
Federal Funds Purchased		—		35,000
Line of credit with a bank		22,486		9,718
Notes payable to a bank		—		8,900

Total	$	163,621	$	188,898

The Federal Home Loan Bank advances are secured by mortgage loans totaling $421,637,000 and $428,081,000 at December 31, 2025 and September 30, 2025, respectively. Advances, at interest rates from .82% to 5.08% maturing through March 2035 are subject to restrictions or penalties in the event of prepayment.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 8:

Borrowed Funds - Continued

At December 31, 2025, the Company had a line of credit with the FHLB to meet short-term borrowing needs that matures and automatically renews daily at the discretion of the FHLB. The line of credit has a variable interest rate that adjusts daily (3.89% at December 31, 2025 and 4.33% at September 30, 2025) with interest payable monthly. At December 31, 2025 and September 30, 2025, the Company had combined remaining borrowing availability for FHLB advances and the line of credit of $270,495,000 and $282,794,000, respectively. The FHLB has sole discretion to deny additional advances.

In January of 2025, the Company opened a line of credit with the Federal Reserve Bank. The debt that had an outstanding balance of $35,000,000 at September 30, 2025 which was fully repaid during the period ended December 31, 2025.

The Company had a note payable with a bank with an outstanding principal balance of $8,900,000 at September 30, 2025 that was fully repaid during the period ended December 31, 2025.

At December 31, 2025 and September 30, 2025, the Company has a revolving line of credit with a bank, with maximum available credit of $27,500,000 maturing April 15, 2026. Interest is payable quarterly. The interest rate is the prime rate (6.75% at December 31, 2025 and 7.25% at September 30, 2025) with a floor of 4.25%. The line is collateralized by 100% of the common stock of the Company’s subsidiary bank and had an outstanding balance of $22,486,000 and $9,718,000 at December 31, 2025 and September 30, 2025, respectively.

Aggregate annual maturities of the long-term borrowed funds at December 31, 2025 are (in thousands):


2026	$	11,805
2027		50,060
2028		18,500
2029		4,680
2030		7,425
Thereafter		7,165

Total	$	99,635

Note 9:

Employee Benefit Plans

The Company has a 401(k) profit sharing plan covering substantially all employees with one month of service. Contributions to the plan are determined by the Board of Directors with certain limitations. Plan expense was approximately $159,000 and $138,000 for the three months ended December 31, 2025 and 2024, respectively.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 10:

Changes in Accumulated Comprehensive Income (AOCI) by Component

There were no amounts reclassified from AOCI to the consolidated statements of income during the three month periods ended December 31, 2025 and 2024.

Note 11:

Related Party Transactions

At December 31, 2025 and September 30, 2025, certain officers, directors, stockholders, employees, their immediate families and companies in which they have significant beneficial ownership were indebted to the Company in the aggregate amount of approximately $6,852,000 and $5,940,000, respectively. Deposits from related parties held by the Company at December 31, 2025 and September 30, 2025, totaled $21,303,000 and $22,016,000, respectively.

In management’s opinion, such loans, other extensions of credit, and deposits were made in the ordinary course of business and were made on substantially the same terms (including interest rates and collateral) as those prevailing at the time for comparable transactions with other persons. Further, in management’s opinion, these loans did not involve more than normal risk of collectability or present other unfavorable features.

Note 12:

Minimum Regulatory Capital Requirements

The Company’s subsidiary bank is subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance-sheet items as calculated under U.S. GAAP, regulatory reporting requirements, and regulatory capital standards. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Furthermore, the Bank’s regulators could require adjustments to regulatory capital not reflected in these financial statements. Prompt corrective actions are not applicable to bank holding companies.

Quantitative measures established by regulatory reporting standards to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined) to risk-weighted assets (as defined), common equity Tier I capital (as defined) to total risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2025 and September 30, 2025, that the Bank met all capital adequacy requirements to which it is subject.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 12:

Minimum Regulatory Capital Requirements - Continued

As of December 31, 2025, the most recent notification from the regulators categorized the Company’s subsidiary bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the bank must maintain minimum total risk-based capital, Tier I risk-based capital, common equity Tier I risk-based capital and Tier I leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s categories.

The Bank is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. The Bank’s actual capital amounts and ratios are also presented in the table.


	Actual					Minimum Capital Requirement					Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions					Minimum Capital Requirements including Capital Conservation Buffer of 2.50
(Unaudited)	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
12/31/2025
Total capital to risk weighted assets	$	148,346		11.3	%	$	104,454		8.0	%	$	131,818		10.0	%	$	138,409		10.5	%
Tier 1 capital to risk weighted assets		133,402		10.1	%		79,091		6.0	%		105,454		8.0	%		112,045		8.5	%
Common equity Tier 1 capital to risk weighted assets		133,402		10.1	%		59,318		4.5	%		85,682		6.5	%		92,273		7.0	%
Tier 1 capital to average assets		133,402		9.5	%		56,198		4.0	%		70,248		5.0	%		91,322		6.5	%
(Audited)
9/30/2025
Total capital to risk weighted assets	$	144,655		11.1	%	$	104,621		8.0	%	$	130,776		10.0	%	$	137,315		10.5	%
Tier 1 capital to risk weighted assets		130,163		10.0	%		78,466		6.0	%		104,621		8.0	%		111,160		8.5	%
Common equity Tier 1 capital to risk weighted assets		130,163		10.0	%		58,849		4.5	%		85,004		6.5	%		91,543		7.0	%
Tier 1 capital to average assets		130,163		9.4	%		55,642		4.0	%		69,553		5.0	%		90,419		6.5	%

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 13:

Financial Instruments with Off-Balance-Sheet or Concentration-of Credit Risk

Credit Related Financial Instruments

The Company is party to credit related financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and Small Business Investment commitments.

Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments.

At December 31, 2025 and September 30, 2025, the following financial instruments were outstanding whose contract amounts represent credit risk:


	Contract Amount
	(Unaudited) 12/31/2025		(Audited) 9/30/2025
	(in thousands)
Commitments to extend credit	$	262,959	$	263,083
Standby letters of credit		2,772		2,285
Unfunded Small Business Investment Company (SBIC) Commitments		378		378

Commitments to extend credit are agreements to lend to customers as long as there is no violation of any condition established in the contracts. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Commitments may expire without being drawn upon. Therefore, total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company, is based on management’s credit assessment of the customer.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of customers to third parties. The credit risk involved when issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments if deemed necessary.

Unfunded SBIC commitments are unconditional obligations to invest as a Limited Partner in qualified small business investments. The credit risk to the Company is limited to its commitment of capital contributions.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 13:

Financial Instruments with Off-Balance-Sheet or Concentration-of Credit Risk - Continued

Collateral Requirements

To reduce credit risk related to credit-related financial instruments, the Company might deem it necessary to obtain collateral. The amount and nature of the collateral obtained is based on the Company’s credit evaluation of the customer. Collateral held varies but may include cash, securities, accounts receivable, inventory, property and equipment, various agricultural products, and real estate.

Other Credit Risks

The Company grants primarily agribusiness, commercial, installment and residential loans to customers in the trade areas surrounding the Company’s physical locations. Although the Company has a diversified loan portfolio, a substantial portion of its debtors’ ability to honor their contracts is dependent on the agribusiness economic sector.

At December 31, 2025 and September 30, 2025, approximately 36% and 37%, respectively, of the Company’s total deposits consisted of short-term certificates of deposit which were issued through a broker and reciprocal balances, which generally had denominations less than $250,000

Note 14:

Member Unit Incentive Plan

The Company’s Member Incentive Plan, which is member approved, permits the grant of member units to its employees. The Company believes that such awards better align the interests of its employees with those of its members. Units awarded are generally granted with an exercise price equal to book value. Each year units awarded will vest into an exercise price based on prevailing market conditions of the Company at the vesting date and is estimated by management. Units vest 10% a year for seven years with the remaining 30% vesting upon a change in control of the Company, an employee’s death or disability, or an employee becoming retirement eligible. The Company defines retirement eligible as the date when the sum of the employee’s age and years of service reaches 75.

As of September 30, 2025, the Company had 816.4 nonvested shares with weighted-average grant- date fair value of $2,428 per share. During 2025, 145.4 shares were granted at an weighted-average grant-date fair value of $2,849. Subsequent to the period ending December 31, 2025, all shares were fully vested with change of control.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 15:

Disclosures About Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1

Quoted prices in active markets for identical assets or liabilities

Level 2

Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities

Level 3

Unobservable inputs supported by little or no market activity and are significant to the fair value of the assets or liabilities

Recurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within Topic 820 fair value hierarchy in which the fair value measurements fall at December 31, 2025 and September 30, 2025:


			Fair Value Measurements Using
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
(Unaudited) 12/31/2025
U.S. Treasuries	$	16,427	$	—	$	16,427	$	—
State and political subdivisions		28,673		—		26,804		1,869
Mortgage-backed (GSE residential/commercial)		38,497		—		38,497		—
(Audited) 9/30/2025
U.S. Treasuries	$	16,307	$	—	$	16,307	$	—
State and political subdivisions		28,301		—		26,408		1,893
Mortgage-backed (GSE residential/commercial)		39,652		—		39,652		—

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 15:

Disclosures about Fair Value of Assets and Liabilities - Continued

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended December 31, 2025. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Securities Available for Sale

Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include marketable equity securities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. Level 2 securities include U.S. government agencies, state and political subdivisions, corporates, and mortgage-backed securities. In cases where Level 1 and Level 2 inputs are not available, securities are classified as Level 3 of the hierarchy and include private equity securities and certain state and political subdivisions.

For Level 3 securities available for there were no transfers in the periods ended December 31, 2025 and September 30, 2025. There were no gains or losses for the three month periods ended December 31, 2025 and December 31, 2024 included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date.

Unobservable (Level 3) Inputs

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements at December 31, 2025 (Unaudited) and September 30, 2025 (Audited):


	Fair Value at 12/31//2025		Valuation Technique	Unobservable inputs
State & Political Subdivisions		1,869	Discounted Cash Flows	Unrated security yield and adjustment Marketability yield discount

	Fair Value at 9/30/2025		Valuation Technique	Unobservable inputs
State & Political Subdivisions		1,893	Discounted Cash Flows	Unrated security yield and adjustment Marketability yield discount

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 15:

Disclosures about Fair Value of Assets and Liabilities - Continued

Nonrecurring Measurements

There were no assets or liabilities measured on a nonrecurring basis at December 31, 2025 and September 30, 2025.

Fair Value of Financial Instruments

The following tables present estimated fair values of the Company’s financial instruments at December 31, 2025 and September 30, 2025:


	(Unaudited) 12/31/2025
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Financial assets
Cash and cash equivalents	$	12,819	$	12,819	$	12,819	$	—	$	—
Interest-bearing time deposits in banks		100		100		100		—		—
Available-for-sale securities		83,597		83,597		—		81,728		1,869
Loans held for sale		1,150		1,150		—		1,150		—
Loans, net of allowance for credit losses		1,287,734		1,281,201		—		—		1,281,201
Interest receivable		10,599		10,599		—		10,599		—
Nonmarketable equity securities		6,849		6,849		—		6,849		—

Total assets	$	1,402,848	$	1,396,315	$	12,919	$	100,326	$	1,283,070

Financial liabilities
Deposits		1,131,715		1,051,889		—		1,051,889		—
Federal Home Loan Bank advances		141,135		140,403		—		140,403		—
Other borrowed funds		22,486		22,486		—		22,486		—
Interest payable		3,098		3,098		—		3,098		—

Total liabilities	$	1,298,434	$	1,217,876	$	—	$	1,217,876	$	—

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 15: Disclosures about Fair Value of Assets and Liabilities - Continued


	(Audited) 9/30/2025
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Financial assets
Cash and cash equivalents	$	11,021	$	11,021	$	11,021	$	—	$	—
Interest-bearing time deposits in banks		100		100		100		—		—
Available-for-sale securities		84,260		84,260		—		82,367		1,893
Loans held for sale		903		903		—		903		—
Loans, net of allowance for credit losses		1,275,374		1,253,679		—		—		1,253,679
Interest receivable		10,902		10,902		—		10,902		—
Nonmarketable equity securities		6,908		6,908		—		6,908		—

Total assets	$	1,389,468	$	1,367,773	$	11,121	$	101,080	$	1,255,572

Financial liabilities
Deposits		1,095,468		1,015,999		—		1,015,999		—
Federal funds purchased		35,000		35,000				35,000
Federal Home Loan Bank advances		135,280		134,874		—		134,874		—
Other borrowed funds		18,618		18,204		—		18,204		—
Interest payable		3,620		3,620		—		3,620		—

Total liabilities	$	1,287,986	$	1,207,697	$	—	$	1,207,697	$	—

Fair Value of Financial Instruments

The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value.

Cash and Cash Equivalents

The carrying amount approximates fair value.

Interest-Bearing Time Deposits in Banks

The carrying amount approximates fair value

Nonmarketable Securities

Fair value is estimated at book value due to restrictions that limit the sale or transfer of such Securities but where a price can be determined, the fair value was determined based on the quoted market price on the New York Stock Exchange as of the reporting date.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 15:

Disclosures about Fair Value of Assets and Liabilities – Continued

Loans

The fair value of loans is estimated by discounting the future cash flows using the market rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The market rates used are based on current rates the Banks would impose for similar loans and reflect a market participant assumption about risks associated with nonperformance, illiquidity, and the structure and term of the loans along with local economic and market conditions.

Deposits

Fair value of term deposits is estimated by discounting the future cash flows using rates of similar deposits with similar maturities. The market rates used were obtained from similar-sized institutions reviewed by the Company. The estimated fair value of demand, NOW, savings and money market deposits is the book value since rates are regularly adjusted to market rates and amounts are payable on demand at the reporting date.

Federal Funds Purchased

The carrying amounts of federal funds purchased approximate the estimated fair values of such liabilities.

Federal Home Loan Bank Advances and Other Borrowed Funds

Fair value is estimated by discounting the future cash flows using rates of similar advances with similar maturities. These rates were obtained from current rates offered by FHLB and the Wall Street Journal Prime Rate.

Interest Payable and Interest Receivable

The carrying amount approximates fair value.

Off-Balance-Sheet Instruments

Due to the short-term nature of such instruments and the relative insignificance of fees currently charged to enter into similar agreements, no fair value has been assigned to off-balance-sheet items.

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

The Company’s remaining assets and liabilities are not considered financial instruments or are not material.

Note 16:

General Litigation

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have material adverse effects on the financial position, results of operations and cash flows of the Company.

Note 17:

Change in Accounting Principle

The Company has recorded a change in accounting principle as of and for the year ended September 30, 2024, as the Company now meets the definition of a public business entity based on Accounting Standards Update (“ASU”) No. 2013-12 since the financial statements will be included in a 8-K filing of Equity Bancshares, Inc. and therefore, must be prepared in accordance with Regulation S-X requirements. The consolidated financial statements have been updated to reverse prior elections to apply certain private company guidance related to leases. The following summarizes the impact on the financial statement amounts. There was no change to the statement of operations as a result of the change in accounting principle.

The following illustrates the impact on the consolidated balance sheet:


	As of September 30, 2024 (amount in thousands)
	As previously reported		Restated
Operating lease right-of-use asset	$	9,430	$	8,498
Operating lease liabilities		9,673		8,741

The following illustrates the impact on the consolidated statement of cash flows:


	As of September 30, 2024 (amount in thousands)
	As previously reported			Restated
Amortization of operating lease right-of-use asset	$	525		$	394
Operating lease liabilities		(417	)		(286	)

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 18:

Condensed Financial Information - Parent Company Only

Presented below is the condensed financial information as to financial position, results of operations and cash flows of the Parent Company.

Frontier Holdings, LLC

CONDENSED BALANCE SHEET

For the Periods Ended December 31, 2025 and September 30, 2025

(Dollar amounts in thousands, except per share data)


	(Unaudited) 12/31/2025		(Audited) 9/30/2025
ASSETS
Cash and due from banks	$	293	$	236
Investment in bank subsidiary		140,078		136,194
Investment in nonbank subsidiary		4		4
Other assets		2,037		2,492

Total assets	$	142,412	$	138,926

LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-term borrowings	$	22,486	$	9,718
Long-term borrowings		—		8,900
Interest payable and other liabilities		3,007		1,242

Total liabilities		25,493		19,860
Stockholders’ equity		116,919		119,066

Total liabilities and stockholders’ equity	$	142,412	$	138,926

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 18:

Condensed Financial Information - Parent Company Only – Continued

Frontier Holdings, LLC

CONDENSED STATEMENTS OF INCOME

For the Three Months Ended December 31, 2025 and 2024

(Dollar amounts in thousands, except per share data)


	(Unaudited) 12/31/2025			(Unaudited) 12/31/2024
Dividends from subsidiary bank	$	—		$	3,700
Other income		4			4

Total income		4			3,704
Expenses
Interest expense		276			379
Other expenses		3,858			934

Total expenses		4,134			1,313

Income (loss) before applicable income taxes		(4,130	)		2,391
Income tax		—			—

Income before undistributed income of subsidiaries		(4,130	)		2,391
Equity in undistributed income of subsidiaries
Bank subsidiary		3,239			537
Nonbank subsidiary		—			—

Net income	$	(891	)	$	2,928

Frontier Holdings, LLC

Notes to Consolidated Financial Statements

December 31, 2025 and September 30, 2025

Note 18:

Condensed Financial Information - Parent Company Only - Continued

CONDENSED STATEMENTS OF CASH FLOWS

For the Three Months Ended December 31, 2025 and 2024

(Dollar amounts in thousands)


	(Unaudited) 12/31/2025			(Unaudited) 12/31/2024
Operating Activities
Net income	$	(891	)	$	2,928
Items not requiring (providing) cash
Investment in Bank subsidiary		(3,239	)		(4,237	)
Depreciation and amortization		18			12
Amortization of operating lease right-of-use asset		8			10
Net changes in:
Other assets		428			378
Operating lease liability		(7	)		(8	)
Interest payable and other liabilities		1,771			(43	)

Net cash provided by operating activities		(1,912	)		(960	)

Investing activities Dividends received from Bank Subsidiary		—			3,700

Net cash used in investing activities		—			3,700

Financing activities
Proceeds from other borrowed funds		12,767			750
Repayment of other borrowed funds		(8,899	)		(2,890	)
Distributions to members		(1,900	)		(500	)

Net cash provided by financing activities		1,968			(2,640	)

Net change in cash and cash equivalents		56			100
Cash and cash equivalents, beginning of year		236			54

Cash and cash equivalents, end of year	$	292		$	154

Exhibit 99.2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS OF FRONTIER HOLDINGS, LLC.

The following discussion and analysis is to focus on material changes in the financial condition and results of operation of Frontier over the indicated periods. This discussion and analysis is intended to highlight and supplement information presented elsewhere in the consolidated financial statements and related notes included with this prospectus. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that management believes are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. Neither Frontier nor Equity assumes any obligation to update any of these forward-looking statements.

Overview

Frontier is a registered financial holding company headquartered in Omaha, Nebraska. Through its wholly owned subsidiary, Frontier Bank, a Nebraska state bank, Frontier provides a broad range of financial services tailored to meet the needs of small-to-midsized businesses and professionals. Since its inception in 1937, Frontier’s priority has been and continues to be creating member value through the establishment of an attractive commercial banking franchise in Nebraska. Frontier considers its primary market to include Douglas, Lancaster, Madison, Richardson and Thurston Counties in Eastern Nebraska. As of December 31, 2025, Frontier had total assets of $1.4 billion, total deposits of $1.1 billion, and total members’ equity of $116.9 million.

As a financial holding company operating through one reportable operating segment, community banking, Frontier generates most of its revenues from interest income on loans, loan fees, and interest income from securities. It incurs interest expense on deposits and other borrowed funds and noninterest expense, such as salaries and employee benefits and occupancy expenses. Frontier analyzes its ability to maximize income generated from interest-earning assets and expense of its liabilities through its net interest margin. Net interest margin is a ratio calculated as net interest income divided by average interest-earning assets. Net interest income is the difference between interest income on interest-earning assets, such as loans and securities, and interest expense on interest-bearing liabilities, such as deposits and borrowings, which are used to fund those assets.

Changes in the market interest rates and the interest rates Frontier earns on interest-earning assets or pays on interest-bearing liabilities, as well as the volume and types of interest-earning assets, interest-bearing and noninterest-bearing liabilities and members’ equity, are usually the largest drivers of periodic changes in net interest spread, net interest margin and net interest income. Fluctuations in market interest rates are driven by many factors, including governmental monetary policies, inflation, deflation, macroeconomic developments, changes in unemployment, the money supply, political and international conditions, and conditions in domestic and foreign financial markets. Periodic changes in the volume and types of loans in Frontier’s loan portfolio are affected by, among other factors, economic and competitive conditions in its markets and across the region, as well as developments affecting the real estate, technology, financial services, insurance, transportation, manufacturing and energy sectors within its markets.

Critical Accounting Estimates

Frontier’s consolidated financial statements are prepared in accordance with GAAP and with general practices within the financial services industry. Application of these principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Frontier bases its estimates on historical experience and on various other assumptions that it believes to be reasonable under current circumstances. These assumptions form the basis for its judgments about the carrying values of assets and liabilities that are not readily available from independent, objective sources. Frontier evaluates its estimates on an ongoing basis. Use of alternative assumptions may have resulted in significantly different estimates. Actual results may differ from these estimates. Frontier’s accounting policies are described in “NOTE 1 – Nature of Operations and Summary of Significant Accounting Policies” in the Condensed Notes to Interim Financial Statement.

Frontier has identified the following critical accounting policies and estimates that, due to the difficult, subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of its financial statements to those judgments and assumptions, are critical to an understanding of its financial condition and results of operations. Frontier believes that the judgments, estimates and assumptions used in the preparation of its financial statements are appropriate.

Allowance for Credit Losses

The determination of the amount of Frontier’s allowance for credit loss, or ACL, is a critical accounting estimate and includes management’s estimate of future credit losses. Loans are charged-off against the ACL when management believes a loan is uncollectable and credited if subsequent recoveries are made. Changes in the ACL, and the related loan loss provision, can materially affect net income.

On October 1, 2023, Frontier adopted ASC 326, Financial Instruments – Credit Losses to estimate its allowance for credit losses. This standard is known as the current expected credit loss standard, or CECL, and replaces the incurred loss approach. CECL requires an estimate of the credit losses expected over the life of financial instruments. The incurred loss approach delays the recognition of a credit loss until the “probable” loss event was “incurred”. The ACL is an estimate that is subject to uncertainty due to the assumptions and significant judgements used in the estimation process.

The estimate of the ACL using the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of loans. The historical loss experience is the starting point for estimating expected credit losses. Frontier considers whether the historical loss experience should be adjusted for asset specific risk characteristics or current conditions at the reporting date that did not exist over the historical reporting period. These qualitative adjustments can include changes in the economy, loan underwriting standards, and delinquency trends. It then considers future economic conditions as part of the one-year reasonable and supportable forecast period. The one-year reasonable and supportable forecast period includes estimates of economic conditions which affect the performance of the loan portfolios. After the one-year reasonable and supportable forecast period, losses are based on historical loss rates, or reversion rate, for the remaining expected life of the loan.

Collateral dependent loans are not considered to share the risk characteristics with our non-collateral dependent portfolio. A loan is considered to be collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. For loans which are considered to be collateral dependent, Frontier has elected to estimate the expected credit loss based on the fair value of the collateral less selling costs. If the fair value of the collateral less selling costs is less than the loan’s amortized cost basis, it records a partial charge-off to reduce the loan’s amortized cost basis for the difference between the collateral fair value less selling costs and the amortized cost basis.

Available-for-sale investment securities in an unrealized loss position are evaluated for impairment. Frontier first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the investment securities amortized cost basis is written down to fair value through income. For available-for-sale debt securities that do not meet the aforementioned criteria, Frontier evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the investment security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an ACL is recognized in other comprehensive income. Frontier has not recorded an ACL related to its available-for-sale investment securities.

Goodwill

Results of Operations

Performance Summary

For the three months ended, December 31, 2025, net loss available to members was $891 thousand or ($20.59) per member unit, compared to net income available to members of $2.9 million, or $68.35 per member unit, for the same period in 2024. Annualized consolidated return on average assets declined to (0.25)% for the three months ended December 31, 2025, compared to 0.89% for the same period in 2024. Annualized return on average members’ equity decreased to (3.01)% for the three months ended December 31, 2025, from 10.89% in the prior-year period.

Net Interest Income

The operating results of Frontier depend primarily on its net interest income, calculated as the difference between interest income on interest-earning assets, such as loans and securities, and interest expense on interest-bearing liabilities, such as deposits and borrowings. Fluctuations in market interest rates impact the yield and rates paid on interest sensitive assets and liabilities. Changes in the amount and type of interest-earning assets and interest-bearing liabilities also impact net interest income. The variance driven by the changes in the amount and mix of interest-earning assets and interest-bearing liabilities is referred to as a “volume change.” Changes in yields earned on interest-earning assets and rates paid on interest-bearing deposits and other borrowed funds are referred to as a “rate change.”

To evaluate net interest income, Frontier measures and monitors (1) yields on loans and other interest-earning assets, (2) the costs of deposits and other funding sources, (3) net interest spread and (4) net interest margin. Net interest spread is the difference between rates earned on interest-earning assets and rates paid on interest-bearing liabilities. Net interest margin is calculated as net interest income divided by average interest-earning assets. Because noninterest-bearing sources of funds, such as noninterest-bearing deposits and members’ equity also fund interest-earning assets, net interest margin includes the benefit of these noninterest-bearing sources. Frontier calculates average assets, liabilities, and equity using a monthly average, and average yield/rate utilizing an actual 365-day count convention

For the three months ended, December 31, 2025, net interest income totaled $10.9 million, and net interest margin and net interest spread were 3.14% and 2.59%, respectively. For the three months ended December 31, 2024, net interest income totaled $9.2 million and net interest margin and net interest spread were 2.83% and 2.20%, respectively. The average yield on the loan portfolio was 6.32%, for the three months ended December 31, 2025, compared to 6.24% for the three months ended December 31, 2024, and the average yield on total interest-earning assets was 6.10% for the three months ended December 31, 2025, compared to 6.02% for the same period in 2024. For the three months ended December 31, 2025, overall cost of deposits (which includes noninterest-bearing deposits) decreased 25 basis points to 3.05% compared to the three months ended December 31, 2024, primarily due to the decline in market interest rates since the last quarter of 2024.

The following table presents, for the periods indicated, an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities, the average amounts outstanding and the interest earned or paid on such amounts. The table also sets forth the average rate earned on interest-earning assets, the average rate paid on interest-bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Interest earned on loans that are classified as nonaccrual is not recognized in income; however, the balances are reflected in average outstanding balances for the period. For the periods shown, interest income not recognized on nonaccrual loans was not material. Any nonaccrual loans have been included in the table as loans

carrying a zero yield. The average total loans reflected below is net of deferred loan fees and discounts. Acquired loans were recorded at fair value at acquisition and accrete interest income over the remaining lives of the respective loans or expected cash flows. Averages presented in the table below, and throughout this report, are month-end averages. All dollars shown are the following table are presented in thousands.


	Three Months Ended December 31,
	2025							2024
	Average Balance		Interest		Yield/ Rate			Average Balance		Interest		Yield/ Rate
Interest-earning assets
Total loans		1,288,927		20,378		6.32	%		1,193,672		18,627		6.24	%
Taxable securities		74,567		634		3.40	%		78,382		726		3.70	%
Nontaxable securities		10,221		56		2.19	%		10,501		57		2.17	%
Other interest-earning assets		17,380		159		3.66	%		17,986		170		3.78	%

Total interest-earning assets		1,391,095		21,227		6.10	%		1,300,541		19,580		6.02	%

Noninterest-earning assets		29,930							31,750

Total assets		1,421,025							1,332,291

Interest-bearing liabilities
Interest-bearing demand deposits		169,414		901		2.13	%		154,256		821		2.13	%
Savings and money market		267,075		1,928		2.89	%		278,888		2,288		3.28	%
Time deposits		552,733		5,603		4.05	%		490,722		5,506		4.49	%

Total interest-bearing deposits		989,222		8,432		3.41	%		923,866		8,615		3.73	%
Federal funds purchased and retail repurchase agreements		35,043		352		4.02	%		—		—		—	%
Federal Home Loan Bank advances		126,867		1,245		3.93	%		139,834		1,391		3.98	%
Other borrowings		20,552		276		5.37	%		22,942		378		6.59	%

Total interest-bearing liabilities		1,171,684		10,305		3.52	%		1,086,642		10,384		3.82	%
Noninterest-bearing checking accounts		108,626							112,566
Noninterest-bearing liabilities		22,390							24,781
Members’ equity		118,325							108,302

Total liabilities and members’ equity		1,421,025							1,332,291

Net interest income				10,922							9,196

Net interest spread						2.59	%						2.20	%

Net interest margin						3.14	%						2.83	%

Total cost of deposits, including noninterest bearing deposits		1,097,848		8,432		3.05	%		1,036,432		8,615		3.30	%

Average interest-earning assets to interest bearing liabilities						118.73	%						119.68	%

(1)	Average loan balances include nonaccrual loans and loans held for sale.

(2)	Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.

(3)	Net interest margin is equal to net interest income divided by average interest-earning assets.

(4)	Tax exempt income is not included in the above table on a tax equivalent basis

The following table presents information regarding the dollar amount of changes in interest income and interest expense for the periods indicated for each major component of interest-earning assets and interest-bearing liabilities and distinguishes between the changes attributable to changes in volume and changes attributable to changes in interest rates. For purposes of this table, changes attributable to both rate and volume that cannot be segregated have been allocated to rate.


	Three Months Ended December 31, 2025 over 2024
	Increase (decrease) Due To:
(Dollars in thousands)	Volume			Yield/Rate			Total
Interest-Earning Assets
Loans		1,503			248			1,751
Taxable securities		(34	)		(58	)		(92	)
Nontaxable securities		(2	)		1			(1	)
Other assets		(6	)		(5	)		(11	)

Total interest-earning assets		1,461			186			1,647

Interest-Bearing Liabilities
Interest-bearing demand deposits		81			(1	)		80
Savings and money market		(94	)		(266	)		(360	)
Time deposits		658			(561	)		97

Total interest-bearing deposits		645			(828	)		(183	)
Federal Funds purchased and retail repurchase agreements		352			(0	)		352
FHLB advances		(127	)		(19	)		(146	)
Other borrowings		(37	)		(65	)		(102	)

Total interest-bearing liabilities		833			(912	)		(79	)

Net interest income		628			1,098			1,726

⁽¹⁾

The effect of changes in volume is determined by multiplying the change in volume by the previous year’s average rate. Similarly, the effect of rate changes is calculated by multiplying the change in average rate by the prior year’s volume. The changes attributable to both volume and rate, which cannot be segregated, have been allocated to the volume variance and the rate variance in proportion on the relationship of the absolute dollar amount of the change in.

Provision for Credit Losses

Frontier’s provision for credit losses is a charge to income to bring its ACL to a level deemed appropriate by management. For a description of the factors considered by management in determining the ACL see “—Financial Condition—Allowance for Credit Losses.” The provision expense for credit losses was $60 thousand and $319 thousand for the three months ended December 31, 2025 and December 31, 2024, respectively.

Noninterest Income

Frontier’s primary sources of noninterest income are service charges on deposit accounts, debit card and automated teller machine (“ATM”) fee income and income from the origination, processing and sale of mortgage loans. The following tables present, for the periods indicated, the major categories of noninterest income:


	Three Months Ended December 31,
(Dollars in thousands)	2025			2024		Increase (Decrease)
Noninterest income:
Service charges on deposit accounts	$	110		$	92	$	18
Mortgage loan sales/originations/processing		339			263		76
Gain (loss) on sale of securities		(1	)		35		(36	)
ATM/debit card interchange fees		183			186		(3	)
Other		59			29		30

Total noninterest income	$	690		$	605	$	85

Noninterest Expense

Generally, noninterest expense is composed of all employee expenses and other costs of Frontier associated with operating its facilities, obtaining and retaining customer relationships and providing bank services. The largest component of noninterest expense is salaries and employee benefits. Noninterest expense also includes operational expenses, such as occupancy expenses, depreciation and amortization, professional and regulatory fees, including FDIC assessments, data processing expenses, and advertising and promotion expenses, among others.

For the three months ended December 31, 2025, Frontier recognized costs associated with its anticipated merger with Equity Bancshares, Inc. within the Legal and professional fees line item. Comparable costs were not recognized in the three months ended December 31, 2024.

The following tables present, for the periods indicated, the major categories of noninterest expense:


	Three Months Ended December 31,
(Dollars in thousands)	2025		2024		Increase (Decrease)
Noninterest expense:
Salaries and employee benefits	$	5,973	$	4,019	$	1,954
Occupancy & equipment		818		772		46
Data processing		1,255		337		918
Legal and professional fees		3,355		503		2,852
FDIC assessment		324		267		57
Advertising		35		83		(48	)
Telephone		21		15		6
Other		662		558		104

Total noninterest expense	$	12,443	$	6,554	$	5,889

Income Tax Expense

Frontier did not recognize income tax expense for any of the periods summarized as it has elected to be taxed as a Subchapter S corporation for federal income tax purposes.

Financial Condition

Assets

At December 31, 2025, total assets were $1.43 billion, an increase of $12.0 million, or 3.4% annualized, from $1.42 billion as of September 30, 2025. The increase in total assets was primarily due to an increase in Frontier’s loan portfolio over the period.

Loan Portfolio

Frontier’s primary source of income is interest on loans to individuals, professionals and small-to-midsized businesses in its markets. Frontier’s loan portfolio consists primarily of commercial loans and real estate loans secured by commercial and residential real estate properties located in its primary market areas. The loan portfolio represents the highest yielding component of Frontier’s earning asset base.

As of December 31, 2025, total loans, excluding mortgage loans held for sale, were $1.30 billion, an increase of $12.6 million, or 1.0%, compared to $1.29 billion as of September 30, 2025. Most of the growth relates to higher agricultural loans in the fourth quarter. Additionally, as of December 31, 2025 and September 30, 2025, Frontier had mortgage loans classified as loans held for sale of $1.15 million and $903 thousand, respectively.

Total loans held for investment as a percentage of deposits were 115% and 118% as of December 31, 2025, and September 30, 2025, respectively. Total loans held for investment as a percentage of assets were 90.92%, and 90.81% as of December 31, 2025, and September 30, 2025, respectively.

The following table summarizes Frontier’s held for investment loan portfolio by type of loan as of the dates indicated:


	December 31, 2025					September 30, 2025
	Amount		Percent			Amount		Percent
	(Dollars in thousands)
Commercial real estate	$	498,663		38	%	$	492,330		38	%
Residential real estate		386,114		30	%		387,101		30	%
Agricultural real estate		172,035		13	%		168,404		13	%
Commercial		158,697		12	%		165,914		13	%
Agricultural		79,381		6	%		68,576		5	%
Consumer and other		8,503		1	%		8,444		1	%

Total loans	$	1,303,393		100	%	$	1,290,769		100	%

Commercial real estate loans are extensions of credit secured by owner-occupied and non-owner-occupied collateral. Repayment is generally dependent on the successful operations of the property. General economic conditions may impact the performance of these types of loans, including fluctuations in the value of real estate, vacancy rates, and unemployment trends. These loans are usually repaid through permanent financing, cash flow from the borrower’s ongoing operations, development of the property, or sale of the property.

Commercial real estate loans increased $6.3 million, or 1.3%, to $498.7 million as of December 31, 2025, from $492.3 million as of September 30, 2025. The increase in both periods is attributable to increased lending opportunities in the market.

Residential real estate loans include first and second lien 1-4 family residential real estate loans, as well as home equity lines of credit, in each case primarily on owner-occupied primary residences. The Company is exposed to risk based on fluctuations in the value of the real estate collateral securing the loan, as well as changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness, or other personal hardship. Real estate residential loans also include multi-family residential loans originated to provide permanent financing for multi-family residential income producing properties. Repayment of these loans primarily relies on successful rental and management of the property.

Residential real estate loans decreased $987 thousand, or less than 1% to $386.1 million as of December 31, 2025, from $387.1 million as of September 30, 2025. The decline is attributable to a seasonally slower origination period combined with normal amortization.

Commercial loans include general commercial and industrial, or C&I, loans, including commercial lines of credit, working capital loans, term loans, equipment financing, asset acquisition, expansion and development loans, borrowing base loans, letters of credit and other loan products, primarily in the Company’s target markets that are underwritten based on the borrower’s ability to service the debt from income. Commercial loan risk is derived from the expectation that such loans generally are serviced principally from the operations of the business, and those operations may not be successful. Any interruption or discontinuance of operating cash flows from the business, which may be influenced by events not under the control of the borrower such as economic events and changes in governmental regulations, could materially affect the ability of the borrower to repay the loan.

Commercial loans decreased $7.2 million, or 4.3%, to $158.7 million as of December 31, 2025, from $165.9 million as of September 30, 2025. Periodic decreases are attributable to seasonal factors.

Agriculture and Agricultural Real Estate loans are generally collateralized by livestock, equipment and real estate used for farm production or grazing. Repayment of agricultural loans is dependent on the successful operation or management of the farm property collateralizing the loan. The success of the loan may also be affected by many factors outside the control of the farm borrower. Weather presents one of the greatest risks as hail; drought, floods, or other conditions can severely limit crop yields and thus impair loan repayments and the value of the underlying collateral. This risk can be reduced with a variety of insurance coverages which can help to ensure loan repayment. Government support programs and the Company generally require farm borrowers to procure crop insurance coverage. Grain and livestock prices also present a risk as prices may decline prior to sale resulting in a failure to cover production costs. These risks may be reduced by the farmer with the use of futures contracts or hedges to mitigate price risk.

Agricultural Real Estate and Agricultural loans have been materially consistent in each of the periods presented, representing 19.3% and 18.4% of total loans as of December 31, 2025 and September 30, 2025, respectively.

Consumer and other loans include a variety of loans to individuals for personal, family and household purposes, including secured and unsecured installment and term loans. The risk is based on changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness or other personal hardship, and fluctuations in the value of the real estate or personal property securing the consumer loan, if any. Balances of consumer and other loans at December 31, 2025 and September 30, 2025 represented less than 0.7% of its held for investment loan portfolio.

The contractual maturity ranges of loans in Frontier’s loan portfolio and the amount of such loans with fixed and floating interest rates in each maturity range as of date indicated are summarized in the following tables:


	As of December 31, 2025 (Dollars in thousands)
	One Year or Less		After One Year through Five Years		After Five Years through Fifteen Years		After Fifteen Years		Total
Real Estate:
Commercial real estate	$	118,509	$	243,746	$	92,480	$	43,928	$	498,663
Residential real estate		142,794		221,643		10,324		11,353		386,114
Agricultural real estate		49,112		50,889		29,561		42,473		172,035

Total real estate		310,415		516,278		132,365		97,754		1,056,812
Commercial		68,465		81,193		9,014		25		158,697
Agricultural		69,409		9,346		268		358		79,381
Consumer and other		1,894		5,616		118		875		8,503

Total	$	450,183	$	612,433	$	141,765	$	99,012	$	1,303,393

Loans with predetermined fixed interest rates	$	207,213	$	492,552	$	59,780	$	11,214	$	770,759
Loans with adjustable/floating interest rates		243,340		119,626		81,869		87,799		532,634

	$	450,553	$	612,178	$	141,649	$	99,013	$	1,303,393


	As of September 30, 2025 (Dollars in thousands)
	One Year or Less		After One Year through Five Years		After Five Years through Fifteen Years		After Fifteen Years		Total
Real Estate:
Commercial real estate	$	128,236	$	225,248	$	93,065	$	45,781	$	492,330
Residential real estate		153,725		212,906		9,013		11,457		387,101
Agricultural real estate		49,463		48,105		29,314		41,522		168,404

Total real estate		331,424		486,259		131,392		98,761		1,047,836
Commercial		96,039		60,734		9,116		25		165,914
Agricultural		59,137		8,637		442		360		68,576
Consumer and other		2,360		5,136		97		851		8,444

Total	$	488,960	$	560,766	$	141,047	$	99,996	$	1,290,769

Loans with predetermined fixed interest rates	$	234,776	$	470,811	$	56,867	$	10,571	$	773,025
Loans with adjustable/floating interest rates		254,184		89,907		84,227		89,426		517,744

	$	488,960	$	560,718	$	141,094	$	99,997	$	1,290,769

Nonperforming Assets

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is generally reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due, or interest may be recognized on a cash basis as long as the remaining book balance of the loan is deemed collectible. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Frontier has several procedures in place to assist in maintaining the overall quality of its loan portfolio. It has established underwriting guidelines to be followed by its bankers, and it also monitors delinquency levels for any negative or adverse trends. However, there can be no assurance that Frontier’s loan portfolio will not become subject to increasing pressures from deteriorating borrower credit due to general economic conditions.

Frontier believes its conservative lending approach and focused management of nonperforming assets has resulted in sound asset quality and the timely resolution of problem assets. Frontier had $7.0 million and $3.2 million in nonperforming assets as of December 31, 2025 and September 30, 2025, respectively. The increase in nonperforming assets for the three months ended December 31, 2025 was primarily attributable to an increase in residential real estate loans and an increase in commercial loans.

The following tables present information regarding nonperforming loans at the dates indicated:


(Dollars in thousands)	December 31, 2025			September 30, 2025
Nonaccrual loans	$	6,058		$	3,181
Accruing loans 90 or more days past due		966			26

Total nonperforming loans		7,024			3,207
Other real estate loans		17			—

Total nonperforming assets	$	7,041		$	3,207

Ratio of nonperforming loans to total loans		0.55	%		0.25	%
Ratio of nonperforming assets to total assets		0.49	%		0.22	%
Ratio of nonaccrual loans to total loans		0.47	%		0.25	%

(Dollars in thousands)
Nonaccrual by category:
Commercial real estate	$	—		$	1,873
Residential real estate		4,643			1,111
Commercial		1,415			142
Agricultural		—			51
Agricultural real estate		—			26
Consumer and other		—			4

Total	$	6,058		$	3,207

Potential Problem Loans

From a credit risk standpoint, Frontier classifies loans in one of four categories: pass, special mention, substandard or doubtful. Loans classified as loss are charged-off. The classifications of loans reflect a judgment about the risks of default and loss associated with the loan. Ratings are adjusted to reflect the degree of risk and loss that is believed to be inherent in each credit. Frontier’s methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk of loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk of loss).

Credits rated special mention show clear signs of financial weaknesses or deterioration in credit worthiness; however, such concerns are not so pronounced that it generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits with a lower rating.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses which exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful have all the weaknesses inherent in those rated substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The following tables summarize Frontier’s internal ratings of loans held for investment as of the dates indicated.


	December 31, 2025
(Dollars in thousands)	Pass		Special Mention		Substandard		Total
Commercial real estate	$	493,982	$	2,161	$	2,520	$	498,663
Residential real estate		378,168		7,387		559		386,114
Ag real estate		164,168		5,213		2,654		172,035
Commercial		150,037		1,700		6,960		158,697
Agriculture		77,152		842		1,387		79,381
Consumer and other		8,488		15		—		8,503

	$	1,271,995	$	17,318	$	14,080	$	1,303,393


	September 30, 2025
(Dollars in thousands)	Pass		Special Mention		Substandard		Total
Commercial real estate	$	487,068	$	2,161	$	3,101	$	492,330
Residential real estate		378,686		7,296		1,119		387,101
Ag real estate		160,572		5,177		2,655		168,404
Commercial		156,345		1,619		7,950		165,914
Agriculture		66,112		1,002		1,462		68,576
Consumer and other		8,444		—		—		8,444

	$	1,257,227	$	17,255	$	16,287	$	1,290,769

Allowance for Credit Losses

Frontier maintains an ACL, which includes both its allowance for loan losses and reserves for unfunded commitments, that represents management’s best estimate of the credit losses and risks inherent in the loan portfolio. In determining the ACL, Frontier estimates losses on specific loans, or groups of loans, where the probable loss can be identified and reasonably determined. The balance of the ACL is based on internally assigned risk classifications of loans, changes in the nature of the loan portfolio, overall portfolio quality, industry concentrations, delinquency trends, current economic factors and the estimated impact of current economic conditions on certain historical credit loss rates. For additional discussion of Frontier’s methodology, please refer to “—Critical Accounting Estimates—Allowance for Credit Losses.”

In connection with its review of the loan portfolio, Frontier considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. Some of the risk elements it considers include:

Commercial Real Estate: Commercial real estate loans typically involve larger principal amounts, and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk in these loans may be impacted by the creditworthiness of a borrower, property values and the local economies in Frontier’s market areas.

Residential Real Estate: The residential 1-4 family real estate loans are generally collateralized by owner-occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers. Credit risk in these loans can be impacted by economic conditions within Frontier’s market areas that might impact either property values or a borrower’s personal income. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers.

Agricultural and Agriculture Real Estate: Agricultural and agricultural real estate loans are generally collateralized by livestock, equipment and real estate used for farm production or grazing. Repayment of agricultural loans is dependent on the successful operation or management of the farm property collateralizing the loan. The success of the loan may also be affected by many factors outside the control of the farm borrower. Weather presents one of the greatest risks as hail; drought, floods, or other conditions can severely limit crop yields and thus impair loan repayments and the value of the underlying collateral. This risk can be reduced with a variety of insurance coverages which can help to ensure loan repayment. Government support programs and Frontier generally require farm borrowers to procure crop insurance coverage. Grain and livestock prices also present a risk as prices may decline prior to sale resulting in a failure to cover production costs. These risks may be reduced by the farmer with the use of futures contracts or hedges to mitigate price risk.

Consumer and Other: The consumer and other loan portfolios consist of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from borrowers’ income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in Frontier’s market area) and the creditworthiness of a borrower.

As of December 31, 2025, the ACL totaled $14.5 million, or 1.11%, of total loans held for investment. As of September 30, 2025, the ACL totaled $14.5 million, or 1.12%, of total loans held for investment.


	Three months ended
	December 31, 2025			September 30, 2025
Ratio of ACL to end of period loans held for investment		1.11	%		1.12	%
Nonaccrual loans to end of period loans held for investment		0.47	%		0.25	%
Ratio of net charge-offs to average loans		0.00	%		0.01	%


	For the Three Months Ended December 31,
	2025						2024
(Dollars in thousands)	Net Charge- offs			% of Average Loans			Net Charge- offs			% of Average Loans
Commercial real estate		6			0.00	%		25			0.02	%
Residential real estate		(11	)		(0.03	)%		—			0.00	%
Commercial		(2	)		0.00	%		—			0.00	%
Agriculture		—			0.00	%		(232	)		(0.93	)%
Ag real estate		—			0.00	%		—			0.00	%
Consumer and other		—			0.00	%		2			0.07	%

Total net charge-offs		(7	)		0.00	%		(205	)		(0.07	)%

⁽¹⁾	Net charge-offs as a percentage of loans expressed on an annualized basis.

Although Frontier believes that it has established its ACL in accordance with generally accepted accounting principles, or GAAP, and that the ACL was adequate to provide for known and estimated losses in the portfolio at all times shown above, future provisions will be subject to ongoing evaluations of the risks in its loan portfolio. If Frontier experiences economic declines or if asset quality deteriorates, material additional provisions could be required.

The following table shows the allocation of the ACL among loan categories and certain other information as of the dates indicated. The allocation of the ACL as shown in the table should neither be interpreted as an indication of future charge-offs, nor as an indication that charge-offs in future periods will necessarily occur in these amounts or in the indicated proportions. The total allowance is available to absorb losses from any loan category.


	As of
	December 31, 2025					September 30, 2025
	Amount		% to Total			Amount		% to Total
Commercial real estate	$	5,581		39	%	$	5,562		38	%
Residential real estate		4,420		30	%		4,279		30	%
Commercial		1,907		13	%		1,898		13	%
Agriculture		791		5	%		723		5	%
Ag real estate		1,717		12	%		1,756		12	%
Consumer and other		93		1	%		274		2	%

Total	$	14,509		100	%	$	14,492		100	%

Securities

Frontier uses its securities portfolio to provide a source of liquidity, an appropriate return on funds invested, manage interest rate risk, meet collateral requirements, and meet regulatory capital requirements. As of December 31, 2025, the carrying amount of investment securities totaled $83.6 million, a decrease of $0.65 million, or 0.8%, compared to $84.3 million as of September 30, 2025. Securities represented 5.8% of assets at both December 31, 2025 and September 30, 2025.

Frontier’s investment portfolio consists of securities classified as available for sale. The carrying values of its securities are adjusted for unrealized gain or loss, and any gain or loss is reported on an after-tax basis as a component of other comprehensive income in members’ equity. For additional information see “NOTE 3 – Securities” in the Condensed Notes to Interim Consolidated Financial Statement.

All of Frontier’s mortgage-backed securities are agency securities. It did not hold any Fannie Mae or Freddie Mac preferred stock, corporate equity, collateralized debt obligations, collateralized loan obligations, private label collateralized mortgage obligations, subprime, Alt-A, or second lien elements in its investment portfolio as of December 31, 2025.

The ACL encompasses potential expected credit losses related to the securities portfolio for credit losses. The assessment includes reviewing historical loss data for both Frontier’s portfolio and similar types of investment securities to develop an estimate for the current securities portfolio. Additionally, Frontier’s review of the securities portfolio for expected credit losses includes an evaluation of factors including the security issuer bond ratings, delinquency status, insurance or other available credit support, as well as its expectations of the forecasted economic outlook relevant to these securities. The results of the analysis are evaluated quarterly to confirm that credit loss estimates are appropriate for the securities portfolio.

Prior to the adoption of ASU 2016-13, declines in the fair value of available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses. In estimating other-than-temporary impairment losses prior to October 1, 2023, management considered, among other things, (1) the length of time and the extent to which the fair value had been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and Frontier’s ability to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

The following tables set forth the fair value, maturities and approximated weighted average yield based on estimated annual income divided by the average amortized cost of the securities portfolio as of the dates indicated. The contractual maturity of a mortgage-backed security is the date at which the last underlying mortgage matures.


	December 31, 2025
	Due in one year or less					Due after one year through five years					Due after five years through 10 years					Due after 10 years					Total
	Carrying Value		Yield			Carrying Value		Yield			Carrying Value		Yield			Carrying Value		Yield			Carrying Value		Yield
Available-for-sale securities:
U.S. Treasury securities	$	2,453		0.75	%	$	13,974		1.21	%	$	—		—		$	—		—		$	16,427		1.14	%
Mortgage-backed securities
Government sponsored residential mortgage-backed securities		13		2.34	%		11,451		3.42	%		20,882		4.61	%		6,151		4.15	%		38,497		4.18	%
State and political subdivisions ⁽¹⁾		120		2.70	%		5,461		2.35	%		7,581		1.81	%		15,511		2.62	%		28,673		2.36	%

Total available-for-sale securities	$	2,586		0.84	%	$	30,886		2.23	%	$	28,463		3.86	%	$	21,662		3.06	%	$	83,597		2.96	%


	September 30, 2025
	Due in one year or less					Due after one year through five years					Due after five years through 10 years					Due after 10 years					Total
	Carrying Value		Yield			Carrying Value		Yield			Carrying Value		Yield			Carrying Value		Yield			Carrying Value		Yield
Available-for-sale securities:
U.S. Treasury securities	$	2,431		0.75		$	13,876		1.21	%	$	—		—		$	—		—		$	16,307		1.14	%
Mortgage-backed securities
Government sponsored residential mortgage-backed securities		14		2.13	%		10,736		3.67	%		22,776		4.66	%		6,126		4.54	%		39,652		4.37	%
State and political subdivisions ⁽¹⁾		120		2.70	%		3,640		1.21	%		8,020		1.87	%		16,521		2.55	%		28,301		2.19	%

Total available-for-sale securities	$	2,565		0.84	%	$	28,252		2.15	%	$	30,796		3.93	%	$	22,647		3.09	%	$	84,260		3.01	%

⁽¹⁾	The calculated yield is not presented on a tax equivalent basis.

The contractual maturity of mortgage-backed securities, collateralized mortgage obligations and asset-backed securities is not a reliable indicator of their expected life because borrowers have the right to prepay their obligations at any time. Mortgage-backed securities and asset-backed securities are typically issued with stated principal amounts and are backed by pools of mortgage loans and other loans with varying maturities. The term of the underlying mortgages and loans may vary significantly due to the ability of a borrower to prepay. Monthly paydowns on mortgage-backed securities tend to cause the average life of the securities to be much different than the stated contractual maturity. During a period of increasing interest rates, fixed rate mortgage-backed securities do not tend to experience heavy prepayments of principal and, consequently, the average life of this security will be lengthened. If interest rates begin to fall, prepayments may increase, thereby shortening the estimated life of this security. The weighted average life of Frontier’s investment portfolio was 7.4 years with an estimated effective duration of 6.2 years as of December 31, 2025.

Frontier did not own securities of any one issuer for which aggregate adjusted cost exceeded 10% of the consolidated members’ equity as of December 31, 2025 or September 30, 2025.

Deposits

Frontier offers a variety of deposit accounts having a wide range of interest rates and terms including demand, savings, money market and time accounts. It relies primarily on competitive pricing policies, convenient locations and personalized service to attract and retain these deposits.

Total deposits as of December 31, 2025 were $1.13 billion, an increase of $36.2 million, or 3.3%, compared to $1.10 billion as of September 30, 2025. The increase in deposits for the three months ended December 31, 2025 was attributable to seasonal fluctuations, continuing efforts to raise funds to support lending combined with a large agricultural producer deposit received late in the quarter.

Noninterest-bearing deposits as of December 31, 2025 were $150.1 million, an increase of $55.5 million, or 59%, compared to $94.6 million as of September 30, 2025. This included the large deposit from the agricultural producer that accounted for approximately $35 million of the increase.

Average deposits for the three months ended December 31, 2025 were $1.10 billion, an increase of $61.4 million, or 5.9%, compared to average deposits of $1.04 billion for the quarter ended December 31, 2024. The average rate paid on total interest-bearing deposits decreased from 3.73% for the quarter ended December 31, 2024 to 3.41% for the quarter ended December 31, 2025. The decrease in average rates was driven by declines in market interest rates while growing deposits at market rates to fund asset growth.

The following table presents the average balances and weighted average rates paid on deposits for the periods indicated:


	For the Three Months Ended December 31,
	2025					2024
	Average Balance		Average Rate			Average Balance		Average Rate
	(Dollars in thousands)
Non-interest-bearing checking accounts	$	108,626		0.00	%	$	112,566		0.00	%
Interest-bearing checking accounts		169,414		2.13	%		154,256		2.13	%
Money market accounts and savings		267,075		2.89	%		278,888		3.28	%
Time		552,733		4.05	%		490,722		4.49	%

Total deposits	$	1,097,848		3.05	%	$	1,036,432		3.30	%

The ratio of average noninterest-bearing deposits to average total deposits for the three months December 31, 2025 was 9.9% and 10.9%, for the three months ended December 31, 2024.

The following table sets forth the contractual maturities of certificates of deposit at December 31, 2025:


	CDs < $250,000		CDs > $250,000		Brokered CDs
3 months or less	$	97,498	$	26,891	$	1,749
3 months to 12 months		146,350		53,130		30,459
1 year through three years		33,410		7,095		75,045
Over three years		3,931		790		67,634

	$	281,189	$	87,906	$	174,887

Borrowings

Frontier utilizes short-term and long-term borrowings to supplement deposits to fund its lending and investment activities. In addition, it uses short-term borrowings to periodically repurchase outstanding member units and for general corporate purposes. Short-term borrowings and long-term borrowings include FHLB advances, an FHLB LOC, a bank LOC, and a note payable to a bank. For additional information see “NOTE 9 – Borrowed Funds” in the Condensed Notes to Interim Consolidated Financial Statement.

Liquidity and Capital Resources

Liquidity

Liquidity involves Frontier’s ability to utilize funds to support asset growth and acquisitions or reduce assets to meet deposit withdrawals and other payment obligations, to maintain reserve requirements and otherwise to operate on an ongoing basis and manage unexpected events. For the three months ended December 31, 2025, and the quarter ended September 30, 2025, liquidity needs at the subsidiary bank level, where substantially all of Frontier’s activities and operations are conducted, were primarily met by core deposits, security and loan maturities, and amortizing investment and loan portfolios. In addition, brokered deposits and short-term advances from FHLB were utilized.

The following table illustrates, during the periods presented, the mix of Frontier’s funding sources and the average assets in which those funds are invested as a percentage of average total assets for the period indicated. Average assets totaled $1.42 billion and $1.33 billion for the three months ended December 31, 2025 and December 31, 2024 respectively.

Source of Funds


	Three months ended
	12/31/2025			% of Total			12/31/2024			% of Total
Source of funds:
Deposits
Noninterest bearing	$	108,626			7.6	%	$	112,565			8.4	%
Interest bearing		989,222			69.7	%		923,866			69.4	%
FHLB advances, Federal Funds purchased and retail repurchase agreements		161,910			11.4	%		139,835			10.5	%
Other borrowed funds		20,552			1.4	%		22,942			1.7	%
Other liabilities		22,390			1.6	%		24,781			1.9	%
Members’ equity		118,325			8.3	%		108,302			8.1	%

Total		1,421,025			100.0	%		1,332,291			100.0	%
Use of funds:
Interest-bearing time deposits in banks		100			0.0	%		100			0.0	%
Taxable securities		74,567			5.2	%		78,382			5.9	%
Nontaxable securities		10,221			0.7	%		10,501			0.8	%
Other interest-earning assets		17,280			1.3	%		17,886			1.3	%
Total loans		1,288,927			90.7	%		1,193,672			89.6	%
Other nonearning assets		29,930			2.1	%		31,750			2.4	%

Total assets	$	1,421,025			100.0	%	$	1,332,291			100.0	%

Average non-interest-bearing deposits to average deposits		9.9	%					10.9	%
Average loans to average deposits		117.4	%					115.2	%

Frontier’s primary source of funds is deposits, and its primary use of funds is loans. It does not expect a change in the primary source or use of funds in the foreseeable future.

Capital Resources

Total members’ equity decreased to $116.9 million as of December 31, 2025, compared to $119.1 million as of September 30, 2025, a decrease of $2.1 million, or 1.8%. The decrease in total members’ equity for the three months ended December 31, 2025 was primarily due to a net loss available to members of $891 thousand due to merger-related expenses totaling $2.4 million and a $1.9 million member distribution, net of an improvement in the amount of Frontier’s accumulated other comprehensive loss of $644 thousand, resulting from the after-tax effect of unrealized gains in its investment securities portfolio during the period.

The declaration and payment of dividends to Frontier’s members, as well as the amounts thereof, are subject to the discretion of the Board of Directors of Frontier and depend upon Frontier’s results of operations, financial condition, capital levels, cash requirements, future prospects and other factors deemed relevant by the Board. As a holding company, Frontier’s ability to pay dividends is largely dependent upon the receipt of dividends from its bank subsidiary, and Frontier has no obligation to declare and pay any dividends to its members.

Capital management consists of providing equity to support current and future operations. Banking regulators view capital levels as important indicators of an institution’s financial soundness. As a general matter, FDIC-insured depository institutions and their holding companies are required to maintain minimum capital relative to the amount and types of assets they hold. Because Frontier has fewer than $3.0 billion in assets, Frontier is subject to regulatory capital requirements only at the subsidiary bank level. As of December 31, 2025 and September 30,

2025, the Bank was in compliance with all applicable regulatory capital requirements, and the Bank was classified as “well-capitalized” for purposes of the FDIC’s prompt corrective action regulations. “Well capitalized” is the highest capital classification for FDIC-insured financial institutions in the United States. As Frontier employs its capital and continues to grow its operations, its regulatory capital levels may decrease depending on its level of earnings and other factors. However, Frontier expects to monitor and control its growth in order to remain in compliance with all applicable regulatory capital standards.

For additional information, see “NOTE 13 – Minimum Regulatory Capital Requirements” in the Condensed Notes to Interim Consolidated Financial Statements.

Contractual Obligations

The following tables summarize Frontier’s contractual obligations and other commitments to make future payments as of December 31, 2025 and September 30, 2025 (other than non-maturity deposit obligations), which consist of future cash payments associated with contractual obligations under FHLB advances, subordinated debt, revolving line of credit, and non-cancelable future operating leases. Payments related to leases are based on actual payments specified in underlying contracts.


	As of December 31, 2025
	1 year or less		More than 1 but less than 3 years		3 years or more but less and 5 years		5 years or more		Total
Time deposits	$	323,869	$	40,505	$	4,721	$	—	$	369,095
Brokered CDs		32,208		75,045		32,962		34,672		174,887
Other debt		22,486		—		—		—		22,486
Federal Home Loan Bank advances		53,305		68,560		12,105		7,165		141,135
Standby letter of credit		1,809		59		241		663		2,772
Commitments to extend credit and unfunded commitments		182,131		36,810		37,903		6,115		262,959

Total	$	615,808	$	220,979	$	87,932	$	48,615	$	973,334

In the normal course of business, Frontier enters into various transactions which, in accordance with GAAP, are not included in its consolidated balance sheets. Frontier enters these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby and commercial letters of credit which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets.

Frontier’s commitments associated with outstanding standby and commercial letters of credit and commitments to extend credit expiring by period as of the date indicated are summarized in the tables above. Because commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements.

Standby and commercial letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. In the event of nonperformance by the customer, Frontier has rights to the underlying collateral, which can include commercial real estate, physical plant and property, inventory, receivables, cash and/or marketable securities. The credit risk to Frontier in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

Because many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. Frontier evaluates each customer’s creditworthiness on a case-by-case basis.

The amount of collateral obtained, if considered necessary by Frontier, upon extension of credit, is based on management’s credit evaluation of the customer.

For additional information see “NOTE 14 Financial Instruments with Off Balance Sheet or Concentration of Credit Risk” in the Condensed Notes to Interim Consolidated Financial Statement.

Interest Rate Sensitivity and Market Risk

As a financial institution, Frontier’s primary component of market risk is sensitivity to movement in interest rates. Its asset and liability management policy provides management with the guidelines for effective interest rate risk management, and Frontier has established a measurement system for monitoring interest rate sensitivity, which it manages within its established guidelines.

Fluctuations in interest rates will ultimately impact the level of income and expense recorded on many of Frontier’s assets and liabilities and the market value of all interest-earning assets and interest-bearing liabilities. Interest rate risk is the potential of economic losses due to interest rate changes. These economic losses can be reflected as a loss of future net interest income and/or a loss of the current fair market value of Frontier’s equity. The objective of interest rate risk management is to measure the effect on net interest income and economic value of equity and to position the balance sheet to minimize the risk of losses and maximize the amount of income without taking on unnecessary earning volatility.

Frontier seeks to manage its exposure to interest rates by structuring its balance sheet in the ordinary course of business; however, it may enter into derivatives contracts to hedge interest rate risk if it is appropriate given its risk profile and policy guidelines. Based upon the nature of its operations, Frontier is not subject to foreign exchange or commodity price risk. Frontier does not own any trading assets.

Frontier’s exposure to interest rate risk is managed by the asset-liability management committee of Frontier Bank, Frontier’s banking subsidiary, in accordance with policies approved by its board of directors. In determining the appropriate level of interest rate risk, the committee considers the impact on earnings and capital of the current outlook on interest rates, potential changes in interest rates, regional economies, liquidity, business strategies and other factors. The committee meets regularly to review, among other things, the sensitivity of assets and liabilities to interest rate changes, the book and market values of assets and liabilities, unrealized gains and losses, purchase and sale activities, commitments to originate loans and the maturities of investments and borrowings. Additionally, the committee reviews liquidity, cash flow flexibility, maturities of deposits and consumer and commercial deposit activity. Management employs methodologies to manage interest rate risk which include an analysis of relationships between interest-earning assets and interest- bearing liabilities, and an interest rate shock simulation model.

Frontier uses interest rate risk simulation models and shock analysis to test the interest rate sensitivity of net interest income and fair value of equity, and the impact of changes in interest rates on other financial metrics. Contractual maturities and re-pricing opportunities of loans are incorporated into the model as are prepayment assumptions, maturity data and optionality. Deposit assumptions such as repricing betas and non-maturity balance decay rates are also incorporated into the model. Model assumptions are revised and updated on a regular basis as directed by policy, and more frequently if conditions merit. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net interest income. Actual results will differ from the model’s simulated results due to timing, magnitude and frequency of interest rate changes, as well as changes in market conditions, customer behavior, and the application and timing of various management strategies.

On at least a quarterly basis, Frontier runs simulation models to calculate potential impacts to net interest income and the economic value of equity. Specific details of the simulations are reflected in policy as directed by the asset-liability management committee.

The following table summarizes the simulated change in net interest income and fair value of equity over a 12-month horizon as of the dates indicated:


	December 31, 2025						September 30, 2025
Change in Interest Rates (Basis Points)	Percent Change in Net Interest Income			Percent Change in Fair Value Of Equity			Percent Change in Net Interest Income			Percent Change in Fair Value Of Equity
+300		9.80	%		(0.15	)%		8.70	%		(2.06	)%
+200		7.62	%		0.66	%		6.75	%		(0.61	)%
+100		5.50	%		1.05	%		4.81	%		0.39	%
Base		—			—			—			—
-100		1.38	%		(2.13	)%		1.12	%		(1.69	)%
-200		(0.78	)%		(6.76	)%		(0.89	)%		(5.87	)%
-300		(3.65	)%		(15.51	)%		(3.40	)%		(13.71	)%

The results of the simulations are primarily driven by the contractual characteristics of all balance sheet instruments and customer behavior.

Impact of Inflation

Frontier’s consolidated financial statements and related notes included elsewhere in this statement have been prepared in accordance with GAAP. These require the measurement of financial position and operating results in terms of historical dollars, without considering changes in the relative value of money over time due to inflation or recession.

Unlike many industrial companies, substantially all of Frontier’s assets and liabilities are monetary in nature. As a result, interest rates have a more significant impact on its performance than the effects of general levels of inflation. Interest rates may not necessarily move in the same direction or in the same magnitude as the prices of goods and services. However, other operating expenses do reflect general levels of inflation.

Source: View Original Filing on SEC EDGAR

5 documents

EQUITY BANCSHARES, INC.

DATE: October 1, 2026

/s/ Brad S. Elliott

Brad S. Elliott

Chief Executive Officer