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Investing.com - Keefe, Bruyette & Woods reiterated its Market Perform rating and $44.00 price target on Equity Bancshares (NYSE:EQBK) following the company’s earnings report.
The regional bank reported operating earnings of $0.94 per share, exceeding expectations primarily due to a lower provision for loan losses and a reduced tax rate, which offset higher expenses and slightly weaker fee income. InvestingPro analysis reveals the company has maintained profitability over the last twelve months, with impressive revenue growth of 56% and a GOOD overall Financial Health Score.
Net interest income aligned with expectations as a stronger core margin compensated for slightly lower earning assets. End-of-period loans declined modestly, while seasonal factors affected deposit levels.
Pre-provision net revenue fell short of expectations mainly due to higher expenses. Despite solid loan production, lower line utilization and quarter-end payoffs resulted in end-of-period loan balances declining at a 3% linked-quarter annualized rate.
Non-performing assets increased to 1.27% of loans and other real estate owned, up from 0.77% in the linked quarter, with KBW noting that a previously identified larger commercial loan contributed to this increase.
In other recent news, Equity Bancshares Inc . reported better-than-expected financial results for the first quarter of 2025. The company achieved earnings per share of $0.85, slightly surpassing the forecast of $0.844, and exceeded revenue expectations with $60.62 million against the projected $56.69 million. Additionally, Equity Bancshares completed its merger with NBC Corp., marking a strategic expansion into the Oklahoma market. As part of this merger, Equity Bancshares issued over 1.7 million shares of its Class A common stock to former NBC shareholders. Meanwhile, at the company’s annual meeting, a proposal to amend the board’s classified structure was not approved by shareholders. DA Davidson revised its price target for Equity Bancshares to $39, maintaining a Neutral rating, citing a consistent forward earnings outlook. The firm highlighted positive developments in credit quality and an increase in origination activity, indicating a stable growth trajectory.
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