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Equity Bancshares Inc (EQBK)
NYSE:EQBK
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Equity Bancshares
(NYSE:EQBK)
64Neutral
Equity Bancshares (EQBK) vs. S&P 500 (SPY)
Market Cap
$675.84M
Dividend Yield1.39%
Average Volume (3M)62.11K
Price to Earnings (P/E)9.7
Beta (1Y)1.13
Revenue Growth49.89%
EPS Growth736.40%
CountryUS
Employees717
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)3.99
Shares Outstanding17,508,740
10 Day Avg. Volume62,035
30 Day Avg. Volume62,113
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)3.13
Price to Cash Flow (P/CF)7.80
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$50.33Price Target Upside30.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Equity Bancshares Business Overview & Revenue Model
Company DescriptionEquity Bancshares, Inc. (EQBK) is a bank holding company headquartered in Wichita, Kansas. It operates through its subsidiary, Equity Bank, providing a range of banking services primarily to individuals, businesses, and government entities. The bank offers products such as checking and savings accounts, personal and commercial loans, mortgage loans, and treasury management services. Equity Bancshares focuses on delivering customer-centric financial solutions through its network of branches spread across Kansas, Missouri, Arkansas, and Oklahoma.
How the Company Makes MoneyEquity Bancshares generates revenue primarily through interest income from loans and leases, as well as interest-earning deposits with other banks. The company's non-interest income sources include service charges on deposit accounts, fees from treasury management and payment processing services, and income from trust and investment management services. Equity Bancshares also benefits from its strategic acquisitions of other financial institutions, which expand its market reach and customer base. The bank's profitability is influenced by factors such as interest rate fluctuations, economic conditions in its operating regions, and the ability to manage loan and deposit growth effectively.
Equity Bancshares Financial Statement Overview
Summary
Equity Bancshares demonstrates strong revenue growth and effective cost management, evident in improved profit margins and a debt-free balance sheet, enhancing financial stability. However, the lack of comprehensive data, particularly in cash flow analysis, poses challenges in assessing liquidity and cash management thoroughly. The overall financial health is positive, but enhanced cash flow transparency would provide a more robust evaluation.Income Statement
Equity Bancshares showed significant growth in total revenue from $136.98M in 2023 to $296.84M in 2024, indicating a solid revenue growth trajectory. The gross profit margin remained strong at 100% due to the nature of revenue recognition in banking. The net profit margin improved to 21.10% in 2024 compared to 5.71% in 2023. EBIT margin was robust at 97.81% in 2024, demonstrating effective cost management. However, the absence of EBITDA figures limits a complete evaluation of operational efficiency.75
Positive
Balance Sheet
Equity Bancshares exhibits a strong balance sheet with no total debt in 2024, a substantial improvement from $336.92M in 2023. Stockholders' equity increased to $1.46B, enhancing financial stability. The equity ratio improved to 31.21% in 2024, indicating a healthy proportion of equity to assets. The absence of debt enhances financial flexibility, although the high reliance on equity might not leverage potential growth opportunities fully.80
Positive
Cash Flow
The cash flow statement lacks detailed data for 2024, impacting the ability to assess cash generation capabilities fully. In 2023, operating cash flow was $76.53M, and free cash flow was $60.39M, showing positive cash generation. However, the absence of data for 2024 limits a comprehensive assessment of cash flow trends and the company's ability to sustain operations and growth through internal funds.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 296.84M | 136.98M | 194.89M | 171.88M | 154.13M | Gross Profit |
| 296.84M | 136.98M | 27.00K | 171.88M | 154.13M | EBIT |
| 290.34M | 8.82M | 101.02M | 64.44M | -74.57M | EBITDA |
| 0.00 | 0.00 | 79.65M | 78.19M | -68.48M | Net Income Common Stockholders |
| 62.62M | 7.82M | 57.69M | 52.48M | -74.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 379.10M | 1.29B | 1.59B | 1.15B | Total Assets |
| 4.68B | 5.03B | 4.98B | 5.14B | 4.01B | Total Debt |
| 0.00 | 336.92M | 235.26M | 95.89M | 97.83M | Net Debt |
| 0.00 | -26.37M | 133.59M | -163.25M | -182.57M | Total Liabilities |
| 3.62B | 4.58B | 4.57B | 4.64B | 3.61B | Stockholders Equity |
| 1.46B | 452.86M | 410.06M | 500.63M | 407.65M |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 60.39M | 70.58M | 97.60M | 34.01M | Operating Cash Flow |
| 0.00 | 76.53M | 74.07M | 102.70M | 43.62M | Investing Cash Flow |
| 0.00 | 232.17M | -214.18M | -315.34M | 96.00M | Financing Cash Flow |
| 0.00 | -34.03M | -15.41M | 191.90M | 51.78M |
Equity Bancshares Technical Analysis
Negative
38.60
Price Trends
42.57
Negative
43.98
Negative
40.66
Negative
Market Momentum
-1.10
Positive
24.19
Positive
6.68
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQBK, the sentiment is Negative. The current price of 38.6 is below the 20-day moving average (MA) of 42.15, below the 50-day MA of 42.57, and below the 200-day MA of 40.66, indicating a bearish trend. The MACD of -1.10 indicates Positive momentum. The RSI at 24.19 is Positive, neither overbought nor oversold. The STOCH value of 6.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EQBK.
Equity Bancshares Risk Analysis
Equity Bancshares disclosed 88 risk factors in its most recent earnings report. Equity Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Equity Bancshares Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.68B | 6.14 | 16.25% | 0.93% | 23.69% | 11.97% | |
68 Neutral | $1.20B | 18.56 | 5.60% | 2.72% | 4.29% | -9.78% | |
65 Neutral | $839.38M | 10.69 | 9.62% | 2.69% | 17.70% | 3.88% | |
64 Neutral | $675.84M | 9.71 | 11.98% | 1.39% | 49.89% | 736.40% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
54 Neutral | $396.78M | 12.51 | -1.83% | 6.59% | 3.95% | -135.44% |
* Financial Sector Average
Performance Comparison
EQBK
Equity Bancshares
38.60
7.16
22.77%
BHLB
Berkshire Hills
25.88
4.61
21.67%
MSBI
Midland States Bancrop
18.23
-4.62
-20.22%
FMBH
First Mid-Illinois Bancshares
35.00
5.08
16.98%
MBIN
Merchants Bancorp
36.27
-6.39
-14.98%
Equity Bancshares Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -9.39% | Next Earnings Date: Apr 22, 2025
Earnings Call Sentiment Positive
The earnings call highlights significant achievements such as record earnings per share, successful M&A activity, and strong capital raise. However, challenges such as the increase in nonperforming assets and classified loans were also noted. Overall, the positive achievements outweigh the challenges.Highlights
Record Earnings Per Share
Equity Bancshares closed the year with record earnings per share of $4.04.
Successful M&A Activity
Completed two whole bank acquisitions within 75 days, highlighting the company's core competency.
Strong Capital Raise
Raised $87 million in common equity to fund M&A growth and organic growth.
Net Interest Margin Expansion
Net interest margin increased to 4.17% from 3.87% in the previous quarter.
Improved Asset Quality Metrics
Nonaccrual loans decreased by 13.5% to $27 million, indicating improved asset quality.
Lowlights
Increase in Nonperforming Assets
Nonperforming assets increased by $2.3 million due to a Main Street lending loan.
Challenges with Loan Payoffs
Loan payoffs accelerated, impacting average loan growth despite strong production.
Classified Loans Increase
Total classified loans increased to $73.5 million, primarily due to a QSR-related customer.
Company Guidance
During the Equity Bancshares Fourth Quarter 2024 earnings call, several key financial metrics were highlighted, reflecting the company's strong performance and strategic outlook. The company concluded the year with record earnings per share of $4.04 and a tangible book value per share growth of $4.70, or 18.5%. Net interest income increased from $46 million to $49.5 million, driving net interest margin up to 4.17% from 3.87% in the previous quarter. In the fourth quarter, Equity Bancshares successfully raised $87 million in common equity for funding M&A growth and other organic opportunities. The company maintained a provision for credit loss of $98,000, with an ending coverage of allowance for credit losses to loans at 1.24%. Capital increased by $88.9 million to $593 million, while the tangible equity ratio improved to 9.95%. Looking forward to 2025, the company anticipated a net interest margin between 3.95% and 4.05% in the first quarter and projected average earning assets between $4.75 billion and $4.85 billion. Overall, Equity Bancshares remains well-positioned for continued growth, both organically and through strategic M&A, backed by a solid capital structure and a strong balance sheet.Equity Bancshares Corporate Events
Executive/Board Changes
Equity Bancshares Appoints Kossover as EVP, Capital Markets
Neutral
Feb 7, 2025
On February 3, 2025, Gregory H. Kossover was appointed as Executive Vice President, Capital Markets of Equity Bank. Previously, he served in various executive roles within Equity Bancshares, including CFO and COO, and had recently been with Vantage Point Properties, Inc. His new compensation package includes a base salary of $400,000, potential bonuses, and equity awards. Kossover will also continue his roles on the Board and various committees, indicating stability and continuity in leadership.
Executive/Board ChangesPrivate Placements and FinancingFinancial Disclosures
Equity Bancshares Reports Strong Q4 2024 Financial Results
Positive
Jan 22, 2025
Equity Bancshares, Inc. announced its financial results for the fourth quarter ended December 31, 2024, reporting a net income of $17.0 million and earnings per diluted share of $1.04. The company experienced a net interest margin expansion to 4.17% and concluded the quarter with a tangible common equity ratio of 9.95%. The quarter also saw the completion of a common stock capital raise, issuing over 2 million shares and increasing deposits by $211.2 million. The company is optimistic about future growth opportunities and announced the return of Greg Kossover to lead its Capital Markets division.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.