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Equity Bancshares Inc (EQBK)
NYSE:EQBK
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Equity Bancshares (EQBK) AI Stock Analysis

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Equity Bancshares

(NYSE:EQBK)

Rating:78Outperform
Price Target:
$46.00
▲(15.90%Upside)
Equity Bancshares' solid financial performance, strategic mergers, and positive earnings call sentiment are key strengths. Technical indicators show mixed signals, and valuation reflects fair pricing. The company's growth strategy positions it well in the regional banking sector.
Positive Factors
Loan Growth
A new incentive program for loan producers is anticipated to generate mid to high-single-digit organic loan growth.
Organic Growth
An acceleration in the organic growth of the balance sheet and fee income is expected following internal actions to boost client calling efforts.
Strategic Acquisitions
Equity Bancshares has sound fundamentals with potential for strategic acquisitions.
Negative Factors
Market Performance
Projected profitability is 1.20% compared to a peer median of 1.16%.
Stock Performance
On a YTD-basis, EQBK shares are -7% compared to a peer group median of -6%.

Equity Bancshares (EQBK) vs. SPDR S&P 500 ETF (SPY)

Equity Bancshares Business Overview & Revenue Model

Company DescriptionEquity 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.
How the Company Makes MoneyEquity Bancshares generates revenue primarily through its lending and deposit-taking activities. The company earns interest income from loans and investment securities, which is a significant portion of its revenue. It also makes money by charging interest on various types of loans, including commercial, consumer, and real estate loans. Additionally, the company earns non-interest income through service charges on deposit accounts, transaction fees, and other financial services. Equity Bancshares may also benefit from strategic partnerships and investments that enhance its financial product offerings and expand its market reach. The company's performance is influenced by factors such as interest rate fluctuations, economic conditions, and regulatory changes.

Equity Bancshares Earnings Call Summary

Earnings Call Date:Jul 14, 2025
(Q2-2025)
|
% Change Since: -9.92%|
Next Earnings Date:Oct 21, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong financial performance, successful merger activities, and strategic expansion into new markets. However, challenges such as increased nonaccrual loans and a decline in deposits were noted. Despite these issues, the positive highlights, including improved margins and financial metrics, suggest a favorable trajectory.
Q2-2025 Updates
Positive Updates
Successful Merger with MVC Bank
Closed merger with MVC Bank on July 2nd, within sixty days of announcement, showcasing the company's efficiency in handling M&A transactions.
Strong Financial Performance
Net income of $15.3 million or 86¢ per diluted share; Adjusted earnings were $16.6 million or 94¢ per diluted share. Net interest income was $49.8 million, up $1.8 million linked quarter.
Increase in Loan Balances
Loan balances year-to-date increased by $100 million, while deposits, excluding seasonal public funds, remained stable.
Improved Tangible Common Equity Ratio
TCE ratio increased to 10.63%, up 41% compared to the second quarter of 2024.
Expansion into Oklahoma Market
With the merger with MVC Bank, Equity Bancshares expanded its presence in Oklahoma, adding Oklahoma City, a growing metro market.
Improved Margin
Margin for the quarter was 4.17%, an improvement of 10 basis points compared to the core margin of 4.07% linked quarter.
Negative Updates
Increase in Nonaccrual Loans
Nonaccrual loans increased to $42.6 million, up $18.3 million from the previous quarter, driven primarily by one QSR relationship.
Deposit Decline
Deposit balance, excluding brokerage funds, declined by $43 million, primarily in commercial accounts due to normal outflow activities.
Noninterest Expenses
Noninterest expenses for the quarter were $40 million. Adjusted noninterest expenses were $38.3 million, indicating a need for cost control.
Company Guidance
During the Equity Bancshares, Inc. 2025 Q2 earnings call, the company provided several metrics that highlighted its financial performance and strategic initiatives. Net income was reported at $15.3 million, or 86¢ per diluted share, with adjusted earnings at $16.6 million, or 94¢ per diluted share, after accounting for merger and acquisition (M&A) and debt extinguishment costs. The company achieved a net interest income of $49.8 million, showing an increase of $1.8 million quarter-over-quarter when adjusted for nonaccrual benefits from the previous period. The core margin improved by 10 basis points to 4.17%. Noninterest income rose to $8.6 million, and noninterest expenses, excluding certain charges, were $38.3 million. The tangible common equity (TCE) ratio closed at 10.63%, with a tangible book value per share of $32.17, marking significant growth compared to the previous year. The bank successfully closed its merger with MVC Bank and aims to leverage this, along with its robust pipeline and strategic focus on both organic growth and M&A, to maintain momentum in the latter half of 2025.

Equity Bancshares Financial Statement Overview

Summary
Equity Bancshares exhibits strong financial performance characterized by solid revenue growth, profitability, and efficient cash management. The company maintains a healthy gross profit margin, low leverage, and stable equity, positioning it well in the regional banking sector.
Income Statement
85
Very Positive
Equity Bancshares shows strong revenue growth with a 47.99% increase from 2023 to TTM (Trailing-Twelve-Months). The company maintains a healthy gross profit margin of 66.70% and a solid net profit margin of 19.12% in TTM. Despite these strengths, the EBIT margin saw a significant boost at 23.87%, indicating improved operational efficiency compared to prior periods.
Balance Sheet
78
Positive
The balance sheet of Equity Bancshares is robust, with a low debt-to-equity ratio of 0.60 in TTM, demonstrating prudent financial leverage. The equity ratio remains stable at 11.34%, reflecting a solid equity base relative to total assets. A return on equity of 10.30% indicates efficient use of equity capital, though there's room for improvement compared to industry benchmarks.
Cash Flow
82
Very Positive
The cash flow statement reflects strong operational cash flow with an operating cash flow to net income ratio of 1.30, indicating good cash generation relative to earnings. Free cash flow has grown impressively by 14.65% from the previous year, supporting future investments and debt servicing. The free cash flow to net income ratio of 1.18 further emphasizes sound cash management practices.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue326.51M224.68M220.28M186.81M177.04M
Gross Profit217.67M135.63M194.99M180.59M129.88M
EBITDA88.54M11.05M79.65M73.34M-66.33M
Net Income62.62M7.82M57.69M52.48M-74.97M
Balance Sheet
Total Assets5.33B5.03B4.98B5.14B4.01B
Cash, Cash Equivalents and Short-Term Investments1.19B1.28B1.29B1.59B1.15B
Total Debt312.80M380.50M281.73M151.89M133.86M
Total Liabilities4.74B4.58B4.57B4.64B3.61B
Stockholders Equity592.92M452.86M410.06M500.63M407.65M
Cash Flow
Free Cash Flow65.35M60.39M70.58M97.60M34.01M
Operating Cash Flow73.84M76.53M74.07M102.70M43.62M
Investing Cash Flow123.73M232.17M-214.18M-315.34M96.00M
Financing Cash Flow-192.93M-34.03M-15.41M191.90M51.78M

Equity Bancshares Technical Analysis

Technical Analysis Sentiment
Negative
Last Price39.69
Price Trends
50DMA
40.30
Negative
100DMA
39.48
Positive
200DMA
41.50
Negative
Market Momentum
MACD
0.19
Positive
RSI
41.84
Neutral
STOCH
4.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQBK, the sentiment is Negative. The current price of 39.69 is below the 20-day moving average (MA) of 41.60, below the 50-day MA of 40.30, and below the 200-day MA of 41.50, indicating a bearish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 4.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQBK.

Equity Bancshares Risk Analysis

Equity Bancshares disclosed 95 risk factors in its most recent earnings report. Equity Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Equity Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESESQ
79
Outperform
$871.87M19.5219.66%0.63%16.18%13.78%
78
Outperform
$697.64M9.8512.24%1.51%31.23%533.61%
78
Outperform
$777.02M9.5113.77%3.78%8.72%-0.45%
77
Outperform
$648.75M15.746.26%22.18%277.02%
75
Outperform
$783.40M12.158.82%3.98%5.20%-11.06%
CACAC
71
Outperform
$714.45M13.448.24%4.98%18.13%4.86%
68
Neutral
$16.93B11.679.79%3.89%11.83%-7.56%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EQBK
Equity Bancshares
39.69
0.06
0.15%
CAC
Camden National
42.17
5.17
13.97%
HAFC
Hanmi Financial
26.12
7.60
41.04%
MBWM
Mercantile Bank
47.86
1.41
3.04%
ESQ
Esquire Financial Holdings
103.04
46.31
81.63%
NBBK
NB Bancorp, Inc.
18.47
0.69
3.88%

Equity Bancshares Corporate Events

Private Placements and Financing
Equity Bancshares Completes $75M Subordinated Notes Offering
Neutral
Jul 18, 2025

On July 17, 2025, Equity Bancshares, Inc. completed a private placement offering of $75 million in subordinated notes, which are set to mature in 2035. The company plans to use the proceeds for general corporate purposes, including debt repayment. The notes feature a fixed interest rate until 2030, after which it will switch to a floating rate. This financial move is expected to impact the company’s capital structure and may influence its market positioning by addressing existing indebtedness.

The most recent analyst rating on (EQBK) stock is a Hold with a $44.00 price target. To see the full list of analyst forecasts on Equity Bancshares stock, see the EQBK Stock Forecast page.

M&A TransactionsDividendsFinancial Disclosures
Equity Bancshares Completes Merger with NBC Oklahoma
Positive
Jul 14, 2025

Equity Bancshares, Inc. reported a net income of $15.3 million for the second quarter ended June 30, 2025, with earnings per diluted share at $0.86. The company completed its merger with NBC Oklahoma, adding seven locations and expanding its loan and deposit base. The net interest margin expanded to 4.17%, and the company declared a $0.15 dividend on common shares. Despite a decrease in deposit balances, the company saw growth in loan balances and an increase in book value per share. The merger with NBC Oklahoma, finalized on July 2, 2025, is expected to strengthen Equity Bancshares’ market position and drive future growth.

The most recent analyst rating on (EQBK) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Equity Bancshares stock, see the EQBK Stock Forecast page.

M&A TransactionsRegulatory Filings and Compliance
Equity Bancshares Completes Merger with NBC Corp.
Neutral
Jul 8, 2025

Equity Bancshares, Inc. has completed its merger with NBC Corp. of Oklahoma, as per the Agreement and Plan of Reorganization dated April 2, 2025. In conjunction with this merger, Equity Bancshares has entered into a Registration Rights Agreement with the former shareholders of NBC, agreeing to file a registration statement with the SEC for the shares issued as merger consideration. The company issued 1,729,783 shares of its Class A common stock to NBC’s former shareholders, utilizing an exemption from the registration requirements of the Securities Act.

The most recent analyst rating on (EQBK) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Equity Bancshares stock, see the EQBK Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Equity Bancshares Completes Merger with NBC Corp.
Positive
Jul 3, 2025

On July 3, 2025, Equity Bancshares, Inc. announced the completion of its merger with NBC Corp. of Oklahoma, expanding its Oklahoma franchise to 15 locations. This strategic acquisition, part of Equity’s disciplined growth strategy, increases its total assets to approximately $6.4 billion and strengthens its position as a leading community banking franchise in the Midwest.

The most recent analyst rating on (EQBK) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Equity Bancshares stock, see the EQBK Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Equity Bancshares Gains Approval for NBC Corp Merger
Positive
Jun 6, 2025

Equity Bancshares, Inc. has received all necessary regulatory approvals to proceed with its merger with NBC Corp. of Oklahoma, as per the agreement signed on April 2, 2025. The merger is anticipated to be finalized by early July 2025, pending customary closing conditions, marking a significant step in the company’s strategic growth initiatives.

The most recent analyst rating on (EQBK) stock is a Buy with a $52.00 price target. To see the full list of analyst forecasts on Equity Bancshares stock, see the EQBK Stock Forecast page.

Dividends
Equity Bancshares Announces Quarterly Cash Dividend
Neutral
May 22, 2025

On May 21, 2025, Equity Bancshares, Inc. announced a quarterly cash dividend of $0.15 per share of common stock. This dividend is set to be paid on July 15, 2025, to shareholders recorded by June 30, 2025.

The most recent analyst rating on (EQBK) stock is a Hold with a $52.00 price target. To see the full list of analyst forecasts on Equity Bancshares stock, see the EQBK Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Equity Bancshares Announces Merger with NBC Corp.
Neutral
May 6, 2025

Equity Bancshares announced it will meet with institutional investors on May 6, 2025, to discuss its financial performance and strategic direction. The company has recently announced a merger with NBC Corp. of Oklahoma, which was disclosed on April 2, 2025, and is part of its ongoing strategy to expand its market presence through acquisitions. The announcement highlights potential risks and uncertainties associated with forward-looking statements, emphasizing the competitive and regulatory challenges in the financial sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 17, 2025