Equity Bancshares (EQBK) Q4 2024 earnings summary

Executive summary

• Achieved record annual earnings per share of $4.04 and Q4 net income of $17.0 million, with net interest margin expanding to 4.17% and tangible book value per share up 18.5% year-over-year.

• Completed two whole bank acquisitions within 75 days each, demonstrating strong M&A execution.

• Raised $87 million in common equity, issuing 2,067,240 shares at $44.50 per share, to fund future 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% and total risk-based capital at 18.07%.

Financial highlights

• Q4 2024 net income was $17.0 million, or $1.04 per diluted share; core net income was $17.8 million, or $1.10 per share.

• Net interest income rose to $49.5 million, with net interest margin expanding to 4.17% from 3.87% sequentially.

• Non-interest income was $8.8 million in Q4 2024, up $331,000 quarter-over-quarter excluding prior quarter acquisition gains.

• Non-interest expenses, adjusted for one-time items, were flat at $37.7 million; efficiency ratio improved to 63.02%.

• Provision for credit losses was $98,000, with net charge-offs annualized at 0.11% of average loans.

Outlook and guidance

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

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

• Provision for credit losses projected at $2–6 million 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 6–8 active discussions.

• Management optimistic about leveraging expanded capital base for organic and inorganic growth.