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Starting point:

• Equity Bancshares (NYSE:EQBK) presented its Q1 2025 financial results on April 15, 2025
• The company reported earnings on April 16, 2025

Main story angles:

1. Equity Bancshares reports solid Q1 2025 results with improved net interest margin and asset quality, despite a decrease in net income due to increased loan loss provisions

2. Strategic growth through both organic expansion and M&A, highlighted by the recently announced NBC Oklahoma merger

3. Strong capital position with TCE/TA ratio of 10.13% positions the company well for future growth opportunities

Article structure:

1. Introduction & Market Context - Overview of Q1 results and market reaction

2. Quarterly Performance Highlights - Key financial metrics and trends

3. Strategic Initiatives - Focus on NBC Oklahoma merger and growth strategy

4. Asset Quality and Loan Portfolio - Analysis of credit quality and loan composition

5. Forward-Looking Statements - Guidance and outlook for the remainder of 2025

Potential titles:

1. "Equity Bancshares Q1 2025 slides: NIM expands as merger plans advance"

2. "Equity Bancshares Q1 2025 presentation: solid results amid strategic expansion"

3. "Equity Bancshares Q1 2025 slides reveal improved margins, strategic growth"

Equity Bancshares Q1 2025 slides: NIM expands as merger plans advance

Introduction & Market Context

Equity Bancshares, Inc. (NASDAQ:EQBK) presented its first quarter 2025 financial results on April 15, 2025, reporting solid performance with improved net interest margin despite a slight decrease in net income. The company’s stock traded at $35.69 as of April 16, down slightly by 0.74% from its previous close, despite exceeding analyst expectations for both earnings per share and revenue.

The $5.4 billion asset bank holding company, which operates across Kansas, Missouri, Oklahoma, and Arkansas, reported earnings per share of $0.85, slightly above the forecast of $0.844, while revenue reached $60.62 million compared to the expected $56.69 million. The company also announced a strategic merger with NBC Oklahoma on April 2, 2025, signaling continued expansion in its regional footprint.

Quarterly Performance Highlights

Equity Bancshares reported core net income of $16.0 million or $0.90 per diluted share for Q1 2025, compared to $17.8 million or $1.10 per share in Q4 2024. Despite the sequential decline, the company saw its net interest margin expand to 4.27% from 4.17% in the previous quarter, driven by effective management of funding costs.

As shown in the following comprehensive financial highlights, the company maintained strong capital ratios while improving its efficiency ratio:

The company’s tangible book value per share continued its upward trajectory, reaching $31.07 in Q1 2025, compared to $30.07 in Q4 2024 and $28.38 in Q3 2024. This represents a compound annual growth rate of 8.18% since the company’s IPO, when TBVPS stood at $16.26.

The following chart illustrates the growth in tangible book value per share and the factors contributing to its increase in Q1 2025:

Brad Elliott, Chairman and CEO of Equity Bancshares, expressed optimism about the company’s trajectory during the earnings call, stating, "It is a very exciting time to be associated with our company. We’re in a great position in our marketplace with our organic sales team."

Strategic Initiatives

A key strategic development for Equity Bancshares is its recently announced merger with NBC Oklahoma, which is expected to close at the end of Q2 2025. This merger will expand the company’s presence in Oklahoma, adding approximately $900 million in assets to its balance sheet.

During the earnings call, management indicated that the NBC merger is expected to contribute approximately $0.50 per share in 2026, with an estimated $0.18 contribution in the second half of 2025. The company also highlighted that it retained approximately $67 million in capital from its December common stock raise, positioning it well for additional strategic acquisitions.

The company’s market position across its four-state footprint is illustrated in the following image:

"We started the year with a strong balance sheet, motivated bankers, and a solid capital stack to execute our dual strategy of organic growth and strategic M&A," Elliott noted during the presentation. "We began to see the results in Q1 and look forward to maintaining this momentum throughout the year."

Asset Quality and Loan Portfolio

Equity Bancshares reported strong loan growth of $131 million in Q1 2025, representing an annualized growth rate of 15.5%. The company’s loan portfolio remains well-diversified, with commercial real estate comprising 51% of total loans, followed by commercial and industrial at 21%, and residential real estate at 16%.

The following chart illustrates the composition of the company’s loan portfolio:

Asset quality metrics showed improvement in Q1 2025, with nonperforming assets declining by 19.6% to $27.9 million, representing 0.51% of total assets compared to 0.65% in Q4 2024. Net charge-offs were minimal at 2 basis points of average loans, down from 4 basis points in the previous quarter.

The following chart demonstrates the positive trends in asset quality:

The company recorded a provision for credit losses of $2.7 million in Q1 2025, compared to no provision in Q4 2024. Management attributed this increase to loan growth and "increased uncertainty related to the current economic environment due to the recent trade policy announcement," while maintaining that they have "not seen concerns in our operating markets."

Performance Metrics and Profitability

Equity Bancshares’ key performance metrics showed mixed results in Q1 2025. While the net interest margin improved, profitability measures such as Return on Average Tangible Common Equity (ROATCE) and Return on Average Assets (ROAA) declined slightly from the previous quarter.

The following chart illustrates the trends in these key performance metrics:

The company’s net income walk from Q4 2024 to Q1 2025 provides insight into the factors affecting profitability:

The decrease in net income was primarily driven by a $2.7 million provision for credit losses and higher non-interest expenses, partially offset by increased net interest income and non-interest income. The efficiency ratio improved slightly to 62.43% from 63.02% in the previous quarter.

Forward-Looking Statements

Looking ahead to the remainder of 2025, Equity Bancshares provided guidance for key business drivers. For Q2 2025, the company expects its net interest margin to range between 4.05% and 4.10%, with average loans between $3.6 billion and $3.7 billion.

The following table outlines the company’s expectations for key metrics:

Management indicated that M&A conversations "continue at a higher rate than I have ever seen them in my time as a banker," suggesting potential for additional strategic acquisitions beyond the NBC Oklahoma merger. The company emphasized that it will "remain disciplined in our approach to assessing these opportunities, emphasizing value while controlling dilution and the earn back timeline."

Regarding the economic environment, management acknowledged potential challenges related to recent trade policy announcements but noted that many customers have mechanisms in place to pass on increased costs. The company’s strong capital position and disciplined credit standards should provide resilience in the face of economic uncertainties.

In conclusion, Equity Bancshares delivered solid Q1 2025 results with expanding net interest margin and improved asset quality, while positioning itself for continued growth through both organic expansion and strategic acquisitions. The upcoming NBC Oklahoma merger represents a significant step in the company’s growth strategy, with potential for additional M&A activity in the near future.

Full presentation:

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