Equity Bancshares expands with NBC Oklahoma merger

WICHITA, Kan. - Equity Bancshares, Inc. (NYSE: EQBK), the parent company of Equity Bank, has announced a definitive merger agreement with NBC Corp. of Oklahoma, the holding company of NBC Oklahoma. This deal, expected to close in the third quarter of 2025, will see NBC merge into Equity, adding seven locations to Equity Bank’s network and doubling its footprint in Oklahoma.

The merger, unanimously approved by both companies’ Boards of Directors, involves NBC receiving approximately 80% of their consideration in EQBK stock. Upon completion, NBC will merge into Equity Bank, and NBC Chairman Ken Fergeson will join the Board of Directors of Equity Bancshares, Inc.

Equity’s Chairman & CEO, Brad Elliott, expressed enthusiasm about the merger, highlighting the shared values and commitment to community service, as well as the potential for enhanced financial services in the Oklahoma City metro and other communities. NBC Chairman Ken Fergeson echoed these sentiments, emphasizing the benefits of expanded resources and growth opportunities for clients and teams.

As of December 31, 2024, NBC Oklahoma had assets of $908.9 million, including loans of $681.5 million, funded primarily through $815.3 million in deposits. Equity Bancshares reported consolidated total assets of $5.3 billion, with deposits and gross loans amounting to $4.4 billion and $3.5 billion, respectively. The company has demonstrated solid financial performance, with InvestingPro data showing impressive revenue growth of 59.55% in the last twelve months and a healthy return on equity of 12%.

The merger is anticipated to be 12.5% accretive to Equity’s 2026 earnings per share, excluding one-time transaction expenses, after considering fully phased-in transaction synergies. The estimated tangible book value per share dilution is expected to be earned back in less than three years.

Equity and NBC leadership will engage with local markets, customers, and businesses to facilitate the transition, with NBC locations rebranding as Equity Bank after the merger.

The transaction marks Equity’s 25th strategic deal since its founding in 2002 and is the 13th whole-bank acquisition since its initial public offering in 2015. A pro forma Equity Bank, including the NBC locations, will comprise a network of 82 bank locations, with 15 offices in Oklahoma and $6.4 billion in total assets.

Equity Bancshares, Inc. received advisory services and a fairness opinion from Keefe, Bruyette & Woods, Inc., and legal counsel from Norton Rose Fulbright US LLP. D.A. Davidson advised NBC, with McAfee & Taft providing legal counsel.

This merger announcement is based on a press release statement, and the companies will hold a conference call and webcast on April 3, 2025, to discuss the merger further. With EQBK’s next earnings report due on April 22, 2025, investors seeking deeper insights into the company’s financials and merger implications can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of over 1,400 US stocks, including EQBK’s financial health score of 2.47 (FAIR) and extensive peer comparison tools.

In other recent news, Equity Bancshares reported strong financial results for the fourth quarter of 2024, with earnings per share (EPS) reaching $1.04, surpassing the forecast of $0.91. The company also exceeded revenue expectations, reporting $58.29 million against a predicted $55.96 million. Despite these positive results, Stephens adjusted its price target for Equity Bancshares to $49.00 from $52.00, while maintaining an Overweight rating. This adjustment follows the company’s report of somewhat soft pre-provision net revenue due to increased expenses.

Additionally, Equity Bancshares announced a quarterly cash dividend of $0.15 per share, continuing its practice of providing shareholders with a steady income stream. The company also extended its credit line with ServisFirst Bank, pushing the maturity date to February 2026, which may indicate sound financial management and stable relationships with lending institutions. In executive news, Gregory H. Kossover was appointed as Executive Vice President of Capital Markets, marking his return to the company. Kossover’s experience is expected to benefit Equity Bancshares’ capital market operations.

These developments reflect Equity Bancshares’ ongoing strategic initiatives and financial performance, which may interest investors looking for growth opportunities in the banking sector.

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