WICHITA: Equity Bancshares, Inc. (NYSE: EQBK), the parent company of Equity Bank, reported second-quarter net income of $15.3 million, or $0.86 per diluted share, for the period ending June 30, 2025, the company announced Tuesday.
Adjusted earnings, excluding $1.7 million in expenses tied to its recently completed merger with NBC Corp. of Oklahoma and debt extinguishment costs, rose to $0.94 per diluted share. This compares to $0.85 per diluted share (GAAP) and $0.90 per diluted share (adjusted) in the prior quarter.
Chairman and CEO Brad Elliott highlighted the company’s momentum: “Our Company continued the momentum generated in the first quarter, while actively working toward the approval and closure of our merger with NBC… Our results reflect the extraordinary efforts of our team while positioning the Company for continued strong performance over the remainder of 2025.”
Elliott emphasized the company’s growth trajectory: “As we enter the second half of the year, we continue to be well positioned to drive growth both organically and via strategic M&A.”
Key Financial and Operational Highlights:
- Profitability: Net interest income was $49.8 million. Excluding non-recurring items in Q1, it increased by $1.8 million. Net interest margin expanded to 4.17%, up 9 basis points excluding prior quarter adjustments.
- Capital Strength: Book value per share rose 3.0% ($1.04) to $35.77. Tangible book value per share increased 3.5% ($1.10) to $32.17. Tangible common equity to tangible assets improved to 10.6%.
- Loan & Deposit Activity: Average loan balances grew $55.8 million (6.2% annualized) to $3.63 billion. Period-end loans were $3.60 billion. Total deposits, including brokered, decreased $170.4 million to $4.2 billion, with non-brokered deposits down $43.4 million. Brokered deposits fell to $138.0 million (3.26% of deposits).
- Credit Quality: Net charge-offs were $573 thousand (0.06% annualized). The allowance for credit losses remained stable at 1.26% of loans. Nonperforming assets increased to $45.7 million (0.9% of total assets).
- Shareholder Returns: Declared a $0.15 per share dividend. Repurchased 7,500 shares at an average cost of $36.46.
- NBC Merger Closed: The merger with NBC Corp., finalized on July 2, 2025, adds approximately $695.1 million in loans, $800.5 million in deposits, and expands Equity’s footprint into Oklahoma City.
Segment Performance:
- Net Interest Income: $49.8 million (Q2), $50.3 million (Q1). Adjusted for non-recurring Q1 items, Q2 showed a $1.8 million increase.
- Provision for Credit Losses: $19 thousand (Q2) vs. $2.7 million (Q1).
- Non-Interest Income: $8.6 million (Q2), down from $10.3 million (Q1), primarily due to a $2.2 million bank-owned life insurance benefit in Q1. Core fee income showed improvement.
- Non-Interest Expense: $40.0 million (Q2), up from $39.1 million (Q1), driven by merger and debt costs. Excluding these, expenses decreased 1.8%.
- Tax Rate: Effective tax rate was 16.9% (Q2) vs. 20.2% (Q1), benefiting from interest on tax claims and new tax credits.
Balance Sheet & Capital Ratios:
- Total assets were $5.4 billion at quarter-end.
- Equity Bancshares’ CET1 ratio was 15.0%, Total Capital ratio 16.8%, and Leverage ratio 12.1%.
- Equity Bank’s CET1 ratio was 14.4%, Total Capital ratio 15.6%, and Leverage ratio 11.1%.
Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions. The company operates branches across Kansas, Missouri, Arkansas, Oklahoma, and Texas.