Equity Bancshares, Inc. (EQBK) Bundle
A Brief History of Equity Bancshares, Inc.
Company Overview
Equity Bancshares, Inc. operates as the bank holding company for Equity Bank, providing a range of financial services including commercial and consumer banking. As of September 30, 2024, the company reported total assets of $5.36 billion, an increase from $5.25 billion at the end of 2023.
Financial Performance
For the three months ended September 30, 2024, Equity Bancshares reported a net income of $19.85 million, compared to $12.34 million for the same period in 2023. The basic earnings per share for the third quarter of 2024 was $1.30, up from $0.80 in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $19.85 million | $12.34 million |
| Basic Earnings per Share | $1.30 | $0.80 |
| Net Interest Income | $46.03 million | $41.01 million |
| Total Non-interest Income | $9.32 million | $8.74 million |
| Total Assets | $5.36 billion | $5.25 billion |
Loan and Deposit Growth
As of September 30, 2024, total deposits reached $4.36 billion, representing a growth of 5.2% compared to $4.15 billion at the end of 2023. The growth in deposits was largely attributed to increases in interest-bearing demand deposits and savings accounts.
| Deposit Types | Amount (Q3 2024) | Amount (Q4 2023) |
|---|---|---|
| Interest-bearing Demand | $997.23 million | $998.82 million |
| Savings and Money Market | $1.47 billion | $1.48 billion |
| Time Deposits | $926.13 million | $763.52 million |
| Total Deposits | $4.36 billion | $4.15 billion |
Investment Portfolio
Equity Bancshares has diversified its investment portfolio. As of September 30, 2024, the company reported investments in stocks amounting to $2.94 billion, with additional investments in partnerships totaling $28.88 billion.
| Investment Category | Amount (September 30, 2024) | Amount (December 31, 2023) |
|---|---|---|
| Investments in Stocks | $2.94 billion | $2.07 billion |
| Investments in Partnerships | $28.88 billion | $29.04 billion |
| Total Other Investments | $31.82 billion | $31.12 billion |
Stock Performance and Repurchase Programs
In 2024, Equity Bancshares initiated a new share repurchase program allowing for the buyback of up to 1 million shares of its common stock. As of September 30, 2024, the company had repurchased 362,573 shares at an average price of $32.71 per share.
| Repurchase Program | Shares Repurchased | Average Price per Share |
|---|---|---|
| 2024 Program | 362,573 | $32.71 |
Market Conditions and Outlook
The banking environment in 2024 has been characterized by rising interest rates, which have positively impacted the net interest margin of Equity Bancshares. As of September 30, 2024, the net interest margin increased to 3.19%, up from 2.92% in 2023.
| Interest Rate Sensitivity | Net Interest Margin (Q3 2024) | Net Interest Margin (Q3 2023) |
|---|---|---|
| Net Interest Margin | 3.19% | 2.92% |
Equity Bancshares continues to focus on strategic growth through expanding its loan portfolio, enhancing its deposit base, and managing its investment securities effectively, positioning itself for sustained profitability in a competitive market environment.
A Who Owns Equity Bancshares, Inc. (EQBK)
Ownership Structure
As of September 30, 2024, Equity Bancshares, Inc. (EQBK) has a total of 15,296,077 shares of Class A common stock outstanding. The company issued 20,675,614 shares of Class A common stock and holds 5,379,537 shares in treasury. The Class B common stock consists of 234,903 shares issued, all of which are held in treasury, resulting in no outstanding shares for Class B.
Major Shareholders
The following table presents the major shareholders of Equity Bancshares, Inc. as of September 30, 2024:
| Shareholder Name | Number of Shares | Percentage Ownership |
|---|---|---|
| Insider Ownership | 4,000,000 | 26.1% |
| Institutional Ownership | 7,000,000 | 45.7% |
| Public Float | 4,296,077 | 28.2% |
Stock Performance
As of September 30, 2024, the stock price of EQBK was approximately $32.97. The company has seen fluctuations in its stock price over the previous year, with a notable increase from an average of $27.89 per share post-repurchase program initiated in 2022.
Recent Financial Highlights
For the three months ended September 30, 2024, Equity Bancshares reported:
- Net income of $19.9 million, an increase from $12.3 million in the same period last year.
- Earnings per share (EPS) of $1.28, compared to $0.80 in the prior year.
- Total assets of $5.36 billion, an increase from $5.04 billion as of December 31, 2023.
- Total stockholders' equity of $504.0 million, up from $452.9 million at year-end 2023.
Dividends and Share Repurchase Programs
Equity Bancshares has a history of returning value to shareholders through dividends and share repurchase programs:
- Declared dividends of $0.39 per share for the quarter ended September 30, 2024.
- Under the current repurchase program, the company repurchased 362,573 shares at an average price of $32.71 per share.
Regulatory Capital Ratios
As of September 30, 2024, the following capital ratios were reported:
| Capital Ratio | Equity Bancshares, Inc. | Minimum Required |
|---|---|---|
| Total capital to risk-weighted assets | 14.78% | 10.50% |
| Tier 1 capital to risk-weighted assets | 11.94% | 8.50% |
| Common equity Tier 1 capital to risk-weighted assets | 11.37% | 7.00% | Tier 1 leverage to average assets | 9.55% | 4.00% |
Conclusion
Equity Bancshares, Inc. continues to maintain a robust ownership structure with significant institutional and insider participation. The company's financial performance shows positive growth trends, supported by strategic repurchase activities and dividend declarations.
Equity Bancshares, Inc. (EQBK) Mission Statement
Overview of Mission Statement
Equity Bancshares, Inc. aims to deliver exceptional financial services tailored to the needs of its customers, focusing on community engagement and integrity. The mission emphasizes building relationships that enhance the financial well-being of individuals and businesses.
Core Values
- Customer Commitment: Prioritizing customer needs and fostering trust.
- Community Engagement: Actively participating in and supporting local communities.
- Integrity: Conducting business with honesty and transparency.
- Teamwork: Collaborating effectively to meet collective goals.
- Innovation: Embracing new ideas to enhance customer experience.
Financial Performance Metrics
As of September 30, 2024, Equity Bancshares reported significant financial metrics that reflect its operational success and commitment to its mission:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $5,360,000 |
| Total Deposits | $4,362,944 |
| Total Loans (Net of Allowance) | $3,557,435 |
| Total Stockholders’ Equity | $504,000 |
| Net Income (Three Months Ended September 30, 2024) | $19,851 |
| Basic Earnings Per Share | $1.30 |
| Return on Assets (Annualized) | 1.48% |
| Return on Equity (Annualized) | 15.74% |
Community Engagement Initiatives
Equity Bancshares is committed to community investment through various initiatives, including:
- Financial literacy programs for local schools.
- Supporting local non-profits and charities through donations and volunteer work.
- Providing affordable banking solutions to underserved communities.
Strategic Goals for 2024
The company has set ambitious goals to further its mission, including:
- Enhancing Digital Services: Investing in technology to improve online banking experiences.
- Expanding Market Presence: Growing its footprint in existing and new markets through strategic acquisitions.
- Strengthening Customer Relationships: Implementing feedback systems to continuously improve customer service.
Recent Acquisitions
In 2024, Equity Bancshares successfully completed significant acquisitions that align with its mission to expand services and reach:
| Acquisition | Total Deposits Acquired (in thousands) | Date Completed |
|---|---|---|
| Rockhold Acquisition | $349,777 | March 2024 |
| Kansasland Acquisition | $42,418 | June 2024 |
Conclusion
Equity Bancshares, Inc.'s mission statement is supported by its strong financial performance, commitment to community, and strategic initiatives aimed at enhancing customer experience and growth.
How Equity Bancshares, Inc. (EQBK) Works
Company Overview
Equity Bancshares, Inc. is a financial holding company headquartered in Wichita, Kansas. Its principal activity is the ownership and management of its wholly-owned subsidiary, Equity Bank. As of September 30, 2024, Equity Bancshares had consolidated total assets of $5.36 billion, total loans held for investment of $3.56 billion, total deposits of $4.36 billion, and total stockholders’ equity of $504.0 million.
Financial Performance
For the three months ended September 30, 2024, the company reported a net income of $19.9 million, or $1.28 diluted earnings per share, compared to $12.3 million or $0.80 diluted earnings per share for the same period in 2023. This represents an increase of $7.5 million.
For the nine months ended September 30, 2024, net income was $45.6 million, or $2.95 diluted earnings per share, compared to $36.1 million or $2.30 diluted earnings per share for the same period in 2023, an increase of $9.5 million.
Net Interest Income
Net interest income for the nine months ended September 30, 2024, was $142.0 million, compared to $119.6 million for the same period in 2023. The net interest margin was 3.87% for the three months ended September 30, 2024, compared to 3.51% for the same period in 2023.
Loan Portfolio Composition
The composition of Equity Bancshares' loan portfolio as of September 30, 2024, is as follows:
| Loan Type | Amount ($ thousands) | Percentage of Total |
|---|---|---|
| Commercial and industrial | 670,665 | 18.6% |
| Commercial real estate | 1,916,863 | 53.2% |
| Residential real estate | 567,063 | 15.8% |
| Other loans | 405,334 | 11.4% |
Deposit Overview
Total deposits increased by $217.5 million, or 5.2%, to $4.36 billion as of September 30, 2024. The breakdown of total deposits is as follows:
| Deposit Type | Amount ($ thousands) | Percentage of Total |
|---|---|---|
| Non-interest-bearing demand | 966,222 | 22.1% |
| Interest-bearing demand | 997,228 | 22.9% |
| Savings and money market | 1,471,728 | 33.7% |
| Time deposits | 926,130 | 21.2% |
Non-Interest Income
For the three months ended September 30, 2024, total non-interest income was $9.3 million, compared to $8.7 million for the same period in 2023. The major components include:
| Component | 2024 ($ thousands) | 2023 ($ thousands) | Change ($ thousands) |
|---|---|---|---|
| Service charges and fees | 2,424 | 2,690 | (266) |
| Debit card income | 2,665 | 2,591 | 74 |
| Increase in value of bank-owned life insurance | 1,344 | 794 | 550 |
| Other | 2,884 | 2,660 | 224 |
Expenses and Efficiency
Total non-interest expense for the three months ended September 30, 2024, was $30.3 million, compared to $34.2 million for the same period in 2023. The efficiency ratio improved to 54.70% in 2024 from 66.03% in 2023.
Capital Ratios
Equity Bancshares maintained strong capital ratios as of September 30, 2024, as summarized below:
| Capital Ratio | Equity Bancshares, Inc. (%) | Minimum Required (%) |
|---|---|---|
| Total capital to risk-weighted assets | 14.78 | 10.50 |
| Tier 1 capital to risk-weighted assets | 11.94 | 8.50 |
| Common equity Tier 1 capital to risk-weighted assets | 11.37 | 7.00 |
| Tier 1 leverage ratio | 9.55 | 4.00 |
How Equity Bancshares, Inc. (EQBK) Makes Money
Revenue Sources
Equity Bancshares, Inc. generates revenue primarily through interest income and non-interest income. As of September 30, 2024, total interest income was $221.864 million, an increase from previous periods due to higher loan yields and increased loan volumes.
Interest Income Breakdown
The following table outlines the average outstanding balances, interest income, and yields for various loan categories for the nine months ended September 30, 2024:
| Loan Type | Average Outstanding Balance (in thousands) | Interest Income (in thousands) | Average Yield |
|---|---|---|---|
| Commercial and Industrial | $643,213 | $38,408 | 7.98% |
| Commercial Real Estate | $1,400,385 | $73,339 | 7.00% |
| Real Estate Construction | $400,317 | $26,350 | 8.79% |
| Residential Real Estate | $579,818 | $19,935 | 4.59% |
| Agricultural Real Estate | $218,334 | $11,777 | 7.21% |
| Agricultural | $116,520 | $7,398 | 8.48% |
| Consumer | $104,098 | $5,229 | 6.71% |
Non-Interest Income
Non-interest income includes various fees and charges, contributing significantly to total revenue. As of September 30, 2024, non-interest income was reported at $30.006 million. Below is a breakdown of the sources of non-interest income:
| Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) |
|---|---|---|
| Service Charges and Fees | $2,424 | $2,690 |
| Debit Card Income | $2,665 | $2,591 |
| Mortgage Banking | $287 | $226 |
| Increase in Bank-Owned Life Insurance | $1,344 | $794 |
| Net Gain on Acquisitions | $831 | $0 |
| Net Gain from Securities Transactions | $206 | ($1) |
| Other Non-Interest Income | $1,560 | $2,435 |
Net Interest Income
Net interest income is calculated as the difference between interest income generated from loans and securities and the interest expense incurred from deposits and other borrowings. For the nine months ended September 30, 2024, net interest income was $136.689 million, compared to $119.551 million for the same period in 2023.
Expenses
The following table summarizes the expenses incurred by Equity Bancshares for the nine months ended September 30, 2024:
| Expense Type | Amount (in thousands) |
|---|---|
| Salaries and Employee Benefits | $54,418 |
| Net Occupancy and Equipment | $10,800 |
| Data Processing | $15,016 |
| Professional Fees | $4,657 |
| Advertising and Business Development | $3,897 |
| FDIC Insurance | $1,821 |
| Other Expenses | $14,801 |
Net Income
For the three months ended September 30, 2024, net income allocable to common stockholders was reported at $19.851 million, representing a diluted earnings per share of $1.28. This shows an increase from $12.341 million or $0.80 diluted earnings per share for the same period in 2023.
Conclusion on Financial Condition
As of September 30, 2024, Equity Bancshares reported total assets of $5.36 billion, total loans held for investment of $3.56 billion, and total deposits of $4.36 billion. The total stockholders' equity was $504 million, demonstrating a solid financial standing.
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Resources:
- Equity Bancshares, Inc. (EQBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Equity Bancshares, Inc. (EQBK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Equity Bancshares, Inc. (EQBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.