Equity Bancshares completes NBC Corp. merger, appoints new board member

Equity Bancshares Inc . (NYSE:EQBK), a $762 million market cap financial institution with a strong financial health score according to InvestingPro, announced the completion of its previously reported merger with NBC Corp. of Oklahoma. According to a press release statement and a filing with the Securities and Exchange Commission, the merger was finalized under an Agreement and Plan of Reorganization dated April 2, 2025.

As part of the transaction, Equity Bancshares issued 1,729,783 shares of its Class A common stock to former NBC shareholders. The shares were issued as merger consideration in reliance on exemptions from registration requirements under Section 4(a)(2) of the Securities Act of 1933. The company’s stock, which trades at a P/E ratio of 11.04, is currently showing signs of being undervalued according to InvestingPro’s Fair Value analysis.

In connection with the merger, Equity Bancshares entered into a Registration Rights Agreement with the former NBC shareholders. The company has agreed to use commercially reasonable efforts to file a registration statement with the SEC to cover the resale or distribution of the shares issued in the merger, and to seek to have the registration declared effective as soon as reasonably practicable. The company has demonstrated strong operational performance, with revenue growth of 56% in the last twelve months.

Effective Thursday, C. Kendric Fergeson, previously Chairman and Chief Executive Officer of NBC, was appointed to the board of directors of Equity Bancshares and Equity Bank. Mr. Fergeson will serve as a non-employee director and join the company’s Risk Committee. He will participate in the standard compensation arrangements for non-employee directors, as described in the company’s proxy statement for its 2025 annual meeting. The filing states there are no other arrangements or understandings related to his appointment beyond the merger agreement, and no related party transactions with Mr. Fergeson were reported since the beginning of the last fiscal year.

The information in this article is based on a press release statement and a Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Equity Bancshares reported stronger-than-expected financial results for the first quarter of 2025. The company achieved earnings per share of $0.85, surpassing the forecast of $0.844, and reported revenue of $60.62 million, exceeding the expected $56.69 million. Additionally, Equity Bancshares announced a strategic merger with NBC Corp, aiming to expand its presence in the Oklahoma market. In other developments, DA Davidson revised its price target for Equity Bancshares to $39.00 from $40.00, maintaining a Neutral rating. The firm noted a consistent forward earnings per share outlook despite a negative variance in the first quarter. Shareholders at Equity Bancshares’ recent annual meeting voted on several proposals, including an amendment to phase out the classified structure of the board, which was not approved. However, four Class I directors were elected to serve until the 2028 annual meeting. The appointment of Crowe LLP as the independent registered public accounting firm for 2025 was ratified by a significant majority.

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