Equity Bancshares Reports $29.7 Million Net Loss in Q3 2025 Amid Increased Loan Losses

Equity Bancshares, Inc. reported a significant decline in financial performance for the third quarter of 2025, with a net loss of $29.7 million, or $(1.55) per diluted share, compared to a net income of $19.9 million, or $1.28 per diluted share, for the same period in 2024. The loss was primarily attributed to a $53.4 million loss from the repositioning of investment securities and a $5 million increase in the provision for loan losses. In contrast, the nine-month period ending September 30, 2025, showed a modest net income of $642,000, down from $45.6 million in the previous year, reflecting similar challenges.

Total assets increased to $6.37 billion as of September 30, 2025, up from $5.33 billion at the end of 2024, driven by a $767.8 million increase in loans held for investment and a $315.7 million rise in cash and cash equivalents. Total deposits also rose by $720 million to $5.09 billion, with notable growth in time deposits, which increased from $736.5 million to $1.06 billion. The company’s loan portfolio expanded significantly, with total loans held for investment reaching $4.27 billion, a 21.9% increase from the previous year.

Strategically, Equity Bancshares completed the acquisition of NBC Corp. of Oklahoma on July 2, 2025, which added seven branch locations and a loan production office to its operations. This acquisition contributed to the growth in total assets and deposits. The company incurred $6.5 million in merger-related expenses during the nine-month period, reflecting the costs associated with integrating NBC into its operations. Additionally, the company is preparing for another merger with Frontier Holdings LLC, expected to close in late 2025 or early 2026.

Operationally, the company reported a provision for credit losses of $9 million for the nine months ended September 30, 2025, compared to $2.4 million for the same period in 2024. The allowance for credit losses stood at $53.5 million, representing 1.3% of total loans. Non-accrual loans increased to $48.6 million, up from $27.1 million at the end of 2024, indicating a deterioration in asset quality. The company’s efficiency ratio worsened to 58.31% for the third quarter, compared to 52.59% in the prior year, primarily due to increased non-interest expenses.

Looking ahead, Equity Bancshares anticipates continued challenges in the current economic environment, particularly regarding credit quality and interest rate fluctuations. The company remains focused on integrating its recent acquisitions and managing its loan portfolio effectively to mitigate risks. Management believes that the current allowance for credit losses is adequate, but acknowledges that future economic conditions could lead to significant changes in credit quality and financial performance.