Equity Bancshares Reports $15M Net Income in Q1 2025, Announces NBC Corp. Acquisition

Equity Bancshares, Inc. reported a net income of $15.0 million for the first quarter of 2025, translating to earnings per share of $0.85, compared to $14.1 million and $0.90 per share in the same period of 2024. The increase in net income was primarily driven by a rise in net interest income, which grew by $4.4 million to $50.3 million, despite a decrease in non-interest income and an increase in non-interest expenses. Total interest and dividend income rose to $74.7 million, up from $71.8 million year-over-year, while interest expense decreased to $24.4 million from $27.6 million, reflecting a favorable shift in the interest rate environment.

The company's total assets increased to $5.45 billion as of March 31, 2025, up from $5.33 billion at the end of 2024. This growth was primarily attributed to a $130.8 million increase in loans held for investment, which reached $3.63 billion, and a $47.6 million rise in cash and cash equivalents. Total deposits also saw a modest increase of $30.6 million, reaching $4.41 billion, driven by a rise in time deposits, although interest-bearing demand and savings deposits experienced declines.

Equity Bancshares has been actively expanding its operations, recently announcing an agreement to acquire NBC Corp. of Oklahoma, which includes seven branch locations and a loan production office. This strategic move is expected to enhance the company's market presence in Oklahoma and contribute to its growth trajectory. The company also reported an increase in its employee headcount, reflecting its ongoing expansion efforts.

In terms of credit quality, the allowance for credit losses increased to $45.8 million, up from $43.3 million at the end of 2024, in response to loan growth and a cautious economic outlook. The company reported net charge-offs of $165,000 for the quarter, a decrease from $668,000 in the prior year. Non-accrual loans totaled $24.2 million, down from $27.1 million, indicating improved asset quality. The company maintains a strong capital position, with a total capital ratio of 18.32%, well above regulatory requirements, and continues to focus on managing its credit risk effectively.

Looking ahead, Equity Bancshares remains optimistic about its growth prospects, supported by its strategic acquisitions and a solid financial foundation. The company anticipates continued improvement in its financial performance, driven by a favorable interest rate environment and effective management of its loan portfolio. However, it acknowledges potential challenges from economic conditions and market volatility that could impact its operations.