Equity Bancshares (EQBK) AI Stock Analysis

• Market Cap: $787.56M
• Dividend Yield: 1.43%
• Average Volume (3M): 88.78K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.96
• Revenue Growth: 31.22%
• EPS Growth: 533.61%
• Country: US
• Employees: 810
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.86
• Shares Outstanding: 19,218,037
• 10 Day Avg. Volume: 80,487
• 30 Day Avg. Volume: 88,781
• PEG Ratio: 0.01
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 2.03
• P/FCF Ratio: 10.15
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 3.64
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: $46.00
• Price Target Upside: 9.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 79 Outperform
• Price Target: $49.00 ▲(16.72% Upside)

Equity Bancshares demonstrates strong financial performance and strategic growth through successful mergers, contributing to a positive outlook. Technical indicators support bullish momentum, while valuation remains reasonable. The company's strategic initiatives and robust earnings further bolster its position, despite some challenges in loan quality and deposits.

Positive Factors

Strategic Mergers

The merger with Frontier Holdings expands Equity Bancshares' regional presence, adding seven locations and enhancing market position, which is expected to drive long-term growth and earnings accretion.

Loan Growth

Significant loan growth reflects strong demand and effective lending strategies, supporting revenue generation and enhancing the company's competitive position in the banking sector.

Cash Flow Management

Strong cash flow management with significant growth in free cash flow indicates efficient operations and the ability to reinvest in growth opportunities, ensuring financial stability.

Negative Factors

Nonaccrual Loans

The increase in nonaccrual loans suggests potential credit quality issues, which could impact future earnings and require increased provisions, affecting profitability.

Deposit Decline

A decline in deposit balances could limit the company's ability to fund new loans and investments, potentially impacting growth and financial flexibility.

Revenue Growth Decline

A decline in revenue growth poses a challenge to maintaining momentum and could pressure margins, necessitating strategic adjustments to sustain long-term profitability.

Equity Bancshares Business Overview & Revenue Model

Company Description

Equity Bancshares, Inc. operates as the bank holding company for Equity Bank that provides a range of banking, mortgage banking, and financial services to individual and corporate customers. The company accepts various demand, savings, money market, and time deposits. Its loan products include commercial and industrial, commercial real estate-backed, commercial lines of credit, working capital, term, equipment financing, acquisition, expansion and development, borrowing base, real estate construction, homebuilder, agricultural, government guaranteed, and other loan products to national and regional companies, restaurant franchisees, hoteliers, real estate developers, manufacturing and industrial companies, agribusiness companies, and other businesses. The company's loan products also comprise various consumer loans to individuals and professionals, including residential real estate loans, home equity loans and lines of credit, installment loans, unsecured and secured personal lines of credit, overdraft protection, and letters of credit. It also provides debit cards; online banking solutions, such as access to account balances, online transfers, online bill payment, and electronic delivery of customer statements; mobile banking solutions comprising remote check deposits with mobile bill pay; ATMs; and treasury management, wire transfer, automated clearing house, and stop payment services. In addition, the company offers cash management deposit products, such as lockbox, remote deposit capture, positive pay, reverse positive pay, account reconciliation services, zero balance accounts, and sweep accounts, as well as banking services through telephone, mail, and personal appointments. As of December 31, 2021, it operated a network of 69 branches in Arkansas, Kansas, Missouri, and Oklahoma. The company was founded in 2002 and is headquartered in Wichita, Kansas.

How the Company Makes Money

Equity Bancshares generates revenue primarily through interest income derived from its loan portfolio, which includes commercial loans, consumer loans, and residential mortgages. The interest earned on these loans constitutes a significant portion of the company's overall earnings. In addition to interest income, the company also earns non-interest income from various sources, such as service fees, account maintenance fees, and transaction fees associated with deposit accounts. Moreover, Equity Bancshares benefits from its investment in securities and other financial instruments. The company may also engage in partnerships and collaborations with local businesses and organizations, enhancing its customer base and increasing deposit inflows, which further contributes to its financial performance.

Equity Bancshares Financial Statement Overview

Summary

Equity Bancshares demonstrates strong financial performance with significant revenue growth, healthy profit margins, and efficient cash management. The company's low leverage and stable equity base enhance its financial stability, though there is room for improvement in return on equity.

Income Statement

Equity Bancshares shows strong revenue growth with a 47.99% increase from 2023 to TTM (Trailing-Twelve-Months). The company maintains a healthy gross profit margin of 66.70% and a solid net profit margin of 19.12% in TTM. Despite these strengths, the EBIT margin saw a significant boost at 23.87%, indicating improved operational efficiency compared to prior periods.

Balance Sheet

The balance sheet of Equity Bancshares is robust, with a low debt-to-equity ratio of 0.60 in TTM, demonstrating prudent financial leverage. The equity ratio remains stable at 11.34%, reflecting a solid equity base relative to total assets. A return on equity of 10.30% indicates efficient use of equity capital, though there's room for improvement compared to industry benchmarks.

Cash Flow

The cash flow statement reflects strong operational cash flow with an operating cash flow to net income ratio of 1.30, indicating good cash generation relative to earnings. Free cash flow has grown impressively by 14.65% from the previous year, supporting future investments and debt servicing. The free cash flow to net income ratio of 1.18 further emphasizes sound cash management practices.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	332.16M	326.51M	224.68M	220.28M	186.81M	177.04M
Gross Profit	224.93M	217.67M	135.63M	194.99M	180.59M	129.88M
EBITDA	91.98M	88.54M	11.05M	79.65M	73.34M	-66.33M
Net Income	67.14M	62.62M	7.82M	57.69M	52.48M	-74.97M
Balance Sheet
Total Assets	5.37B	5.33B	5.03B	4.98B	5.14B	4.01B
Cash, Cash Equivalents and Short-Term Investments	1.34B	1.19B	1.28B	1.29B	1.59B	1.15B
Total Debt	444.22M	312.80M	380.50M	281.73M	151.89M	133.86M
Total Liabilities	4.74B	4.74B	4.58B	4.57B	4.64B	3.61B
Stockholders Equity	635.64M	592.92M	452.86M	410.06M	500.63M	407.65M
Cash Flow
Free Cash Flow	85.74M	65.35M	60.39M	70.58M	97.60M	34.01M
Operating Cash Flow	95.12M	73.84M	76.53M	74.07M	102.70M	43.62M
Investing Cash Flow	47.43M	123.73M	232.17M	-214.18M	-315.34M	96.00M
Financing Cash Flow	-36.61M	-192.93M	-34.03M	-15.41M	191.90M	51.78M

Equity Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EQBK, the sentiment is Positive. The current price of 41.98 is above the 20-day moving average (MA) of 41.39, above the 50-day MA of 40.07, and above the 200-day MA of 40.73, indicating a bullish trend. The MACD of 0.51 indicates Positive momentum. The RSI at 61.27 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EQBK.

Equity Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	79 Outperform	882.97M	19.29	0.00%	0.65%	16.76%	12.84%
EQBK	79 Outperform	$787.56M	10.13	12.24%	1.43%	31.22%	533.61%
NBBK	78 Outperform	676.48M	14.30	6.95%	0.38%	17.31%	251.27%
CAC	76 Outperform	680.53M	13.16	7.54%	4.18%	22.21%	6.20%
MBWM	74 Outperform	763.68M	9.60	12.89%	3.15%	8.72%	-0.45%
HAFC	72 Outperform	758.87M	11.85	8.50%	4.21%	3.34%	-1.93%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Equity Bancshares Corporate Events

Equity Bancshares Announces Merger with Frontier Holdings

On August 29, 2025, Equity Bancshares, Inc. announced a definitive merger agreement with Frontier Holdings, LLC, marking its expansion into Nebraska by acquiring Frontier Bank’s seven locations. This strategic move is expected to enhance Equity’s regional presence and align with its community banking values. The merger, expected to close in the fourth quarter of 2025, will involve a mix of stock and cash consideration, subject to regulatory and member approvals. Additionally, Equity Bancshares has repositioned its bond portfolio, selling $358.8 million of securities to improve balance sheet efficiency and is projected to increase annual interest income by approximately $7.4 million, contributing to earnings per share accretion in 2026.

Equity Bancshares Completes $75M Subordinated Notes Offering

On July 17, 2025, Equity Bancshares, Inc. completed a private placement offering of $75 million in subordinated notes, which are set to mature in 2035. The company plans to use the proceeds for general corporate purposes, including debt repayment. The notes feature a fixed interest rate until 2030, after which it will switch to a floating rate. This financial move is expected to impact the company’s capital structure and may influence its market positioning by addressing existing indebtedness.

Equity Bancshares Completes Merger with NBC Oklahoma

Equity Bancshares, Inc. reported a net income of $15.3 million for the second quarter ended June 30, 2025, with earnings per diluted share at $0.86. The company completed its merger with NBC Oklahoma, adding seven locations and expanding its loan and deposit base. The net interest margin expanded to 4.17%, and the company declared a $0.15 dividend on common shares. Despite a decrease in deposit balances, the company saw growth in loan balances and an increase in book value per share. The merger with NBC Oklahoma, finalized on July 2, 2025, is expected to strengthen Equity Bancshares’ market position and drive future growth.

Equity Bancshares Completes Merger with NBC Corp.

Equity Bancshares, Inc. has completed its merger with NBC Corp. of Oklahoma, as per the Agreement and Plan of Reorganization dated April 2, 2025. In conjunction with this merger, Equity Bancshares has entered into a Registration Rights Agreement with the former shareholders of NBC, agreeing to file a registration statement with the SEC for the shares issued as merger consideration. The company issued 1,729,783 shares of its Class A common stock to NBC’s former shareholders, utilizing an exemption from the registration requirements of the Securities Act.

Equity Bancshares Completes Merger with NBC Corp.

On July 3, 2025, Equity Bancshares, Inc. announced the completion of its merger with NBC Corp. of Oklahoma, expanding its Oklahoma franchise to 15 locations. This strategic acquisition, part of Equity’s disciplined growth strategy, increases its total assets to approximately $6.4 billion and strengthens its position as a leading community banking franchise in the Midwest.