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1. Company Snapshot

1.a. Company Description

Equity Bancshares, Inc.operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers.The company accepts various demand, savings, money market, and time deposits.


Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses.The company's loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit.It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services.


In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments.As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri, and Oklahoma.The company was founded in 2002 and is headquartered in Wichita, Kansas.

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1.b. Last Insights on EQBK

Here is a 90-word analysis of the negative drivers behind Equity Bancshares, Inc.'s recent performance: Despite beating Q4 earnings and revenue estimates, Equity Bancshares faces headwinds from its recent $92 million common stock offering, which may have diluted existing shareholders' value. The company's decision to issue new shares, rather than repurchasing existing ones, may have weighed on investor sentiment. Additionally, the bank's growing provision for credit losses, as mentioned in the Q4 earnings call, could be a concern for investors.

1.c. Company Highlights

2. Equity Bancshares' Q3 Earnings: A Strong Performance

Equity Bancshares reported a net loss of $29.7 million or $1.57 per diluted share for Q3 2025, however, adjusted earnings were $1.17 per diluted share. Net interest income was $62.5 million, up $12.7 million linked quarter, driven by a 28 basis point improvement in margin to 4.45%. The actual EPS came out at $1.21, beating estimates of $0.99. Revenue growth is expected to be 28.5% next year, indicating a strong outlook.

Publication Date: Nov -18

📋 Highlights
  • Merger Impact: Added $665M in loans and $808M in deposits via NBC acquisition, expanding Oklahoma footprint.
  • Capital Raise: Secured $75M subordinated debt to fund dual growth strategy and post-merger operations.
  • Margin Expansion: Net interest margin rose 28bps to 4.45%, driven by 13bps from purchase accounting and 7bps from non-accrual recovery.
  • Adjusted Earnings: Net loss of $29.7M ($1.57/share) vs. adjusted net income of $22.4M ($1.17/share) after $53.4M pre-tax losses and $12.4M M&A/CECL charges.
  • Loan Growth: Q3 loan production surged 23% yoy to $243M at 7.14% average rate, signaling strong origination momentum.

Margin Expansion and Asset Quality

The company's margin expansion was driven by purchase accounting amortization and non-accrual improvement. Normalizing for these factors, core margin was 4.35%. Asset quality remains a focus, with the addition of NBC's loan portfolio bringing $7 million in non-accrual relationships and $16.7 million in classified assets. Management is actively working on resolutions and does not anticipate losses in excess of marks, as noted by Rick Sems, "Management is actively working on resolutions on these additions and does not anticipate losses in excess of marks."

Loan Growth and Deposit Strategy

Loan production was $243 million, up 23% linked quarter, with originations at an average rate of 7.14%. The team continues to focus on growing relationships and deepening wallet share. Deposit pricing strategy has been consistent, with rates being brought down in line with FOMC rate moves. Chris Navratil mentioned that the company has been able to take out the higher end of deposit rates.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) of around 1.09, and a Dividend Yield of 1.55%, the stock appears reasonably valued. The Net Interest Margin (NIM) of 4.45% is a positive indicator. Considering the expected revenue growth of 28.5% next year, the current valuation multiples seem justified. The company's strategic focus on growth and its ability to maintain margin consistency as interest rates change will be key to its future performance.

3. NewsRoom

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3 Must-Buy Efficient Stocks to Boost Your Portfolio Returns

Dec -04

Source: zacks.com

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Analyzing Renasant (NYSE:RNST) & Equity Bancshares (NYSE:EQBK)

Dec -04

Source: defenseworld.net

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Contrasting Equity Bancshares (NYSE:EQBK) & Renasant (NYSE:RNST)

Nov -23

Source: defenseworld.net

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Connor Clark & Lunn Investment Management Ltd. Lowers Stock Holdings in Equity Bancshares, Inc. $EQBK

Nov -17

Source: defenseworld.net

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Financial Analysis: Equity Bancshares (NASDAQ:EQBK) and Eagle Financial Services (OTCMKTS:EFSI)

Nov -15

Source: defenseworld.net

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Equity Bancshares: Undervalued Growth Hidden In Plain Sight

Oct -16

Source: seekingalpha.com

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Equity Bancshares, Inc. (EQBK) Q3 2025 Earnings Call Transcript

Oct -15

Source: seekingalpha.com

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Equity Bancshares (EQBK) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Oct -14

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Banking and Related Activities

Expected Growth: 7.4%

Equity Bancshares, Inc.'s 7.4% growth in Banking and Related Activities is driven by strategic acquisitions, expansion into new markets, and a focus on commercial lending. Additionally, the company's investment in digital banking platforms and cost-saving initiatives have improved operational efficiency, contributing to the growth.

7. Detailed Products

Personal Banking

Equity Bancshares, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

The company provides business banking services, including commercial loans, lines of credit, cash management, and treasury management solutions.

Wealth Management

Equity Bancshares, Inc. offers wealth management services, including investment management, financial planning, and retirement planning.

Mortgage Lending

The company provides mortgage lending services, including residential and commercial mortgage loans, refinancing, and construction loans.

Treasury Management

Equity Bancshares, Inc. offers treasury management services, including cash management, wire transfers, and account reconciliation.

Online Banking

The company provides online banking services, including online bill pay, mobile banking, and online account management.

8. Equity Bancshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Equity Bancshares, Inc. is medium due to the presence of alternative banking services and financial institutions that offer similar products and services.

Bargaining Power Of Customers

The bargaining power of customers for Equity Bancshares, Inc. is low due to the lack of concentration of buyers and the presence of multiple banking options.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Equity Bancshares, Inc. is low due to the presence of multiple suppliers and the lack of concentration of suppliers.

Threat Of New Entrants

The threat of new entrants for Equity Bancshares, Inc. is high due to the relatively low barriers to entry and the presence of fintech companies that offer innovative banking services.

Intensity Of Rivalry

The intensity of rivalry for Equity Bancshares, Inc. is high due to the presence of multiple banking institutions and the competitive nature of the banking industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.66%
Debt Cost 8.04%
Equity Weight 57.34%
Equity Cost 8.53%
WACC 8.32%
Leverage 74.40%

11. Quality Control: Equity Bancshares, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
First Bank

A-Score: 5.9/10

Value: 4.8

Growth: 4.9

Quality: 6.8

Yield: 4.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
NSTS Bancorp

A-Score: 5.8/10

Value: 7.7

Growth: 5.7

Quality: 4.1

Yield: 0.0

Momentum: 7.5

Volatility: 9.7

1-Year Total Return ->

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Stock-Card
TC Bancshares

A-Score: 5.7/10

Value: 5.5

Growth: 6.3

Quality: 5.6

Yield: 0.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Equity Bancshares

A-Score: 5.5/10

Value: 6.1

Growth: 6.6

Quality: 5.8

Yield: 3.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
MidWestOne Financial Group

A-Score: 5.1/10

Value: 6.0

Growth: 2.1

Quality: 7.0

Yield: 7.0

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Live Oak Bancshares

A-Score: 4.6/10

Value: 6.0

Growth: 8.3

Quality: 6.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

44.88$

Current Price

44.88$

Potential

-0.00%

Expected Cash-Flows