Equity Bancshares (EQBK) Q4 2024 earnings summary

Executive summary

• Achieved record EPS of $4.04 for the year, with Q4 2024 net income of $17.0 million and core EPS of $1.10, driven by interest margin expansion and strong earnings.

• Completed two whole bank acquisitions within 75 days and raised $87 million in common equity to fund M&A and organic growth.

• Tangible book value per share rose to $30.07, up $1.69 (6.0%) quarter-over-quarter and $4.70 year-over-year.

• Maintained strong capital ratios: CET1 at 14.51%, total risk-based capital at 18.07%, and tangible common equity/tangible assets at 9.95%.

• Ended the year with a strong balance sheet and motivated team, positioning for continued organic and M&A-driven expansion.

Financial highlights

• Q4 2024 net income was $17 million ($1.04 per diluted share); core net income was $17.8 million.

• Net interest income rose to $49.5 million, with net interest margin expanding to 4.17% (4.04% excluding non-recurring items).

• Non-interest income was $8.8 million in Q4 2024, slightly down from Q3; adjusted non-interest expenses were flat at $37.7 million.

• Provision for credit losses was $98,000, with ACL to loans coverage at 1.24%; net charge-offs annualized at 0.11% for Q4.

• Loan and deposit portfolios each grew 5% year-over-year, closing at $3.5 billion and $4.4 billion, respectively.

Outlook and guidance

• FY 2025 guidance: average deposits $4.4–4.5B, average loans $3.575–3.675B, net interest margin 3.95–4.05%.

• Provision for credit losses projected at $2–6M for FY 2025; effective tax rate expected at 20–22%.

• Anticipates mid to high single-digit organic loan growth and continued M&A activity with several deals in advanced stages.

• Noninterest income expected at $32–36M and noninterest expense at $147–153M for FY 2025.