Equity Bancshares, Inc. has reported its first-quarter results for 2024, highlighted by record net interest income and net interest margin expansion. The company reported net income of $14.1 million or $0.90 earnings per diluted share for the quarter, with adjusted earnings per share at $1.03 after excluding merger expenses and opening balance sheet provisioning.
The company completed its merger with Rockhold Bancorp, adding eight locations, $118.7 million in loans, and $349.6 million in deposits. This contributed to a linked quarter gross loans held-for-investment expansion of $149.3 million, with a 3.70% annualized growth in loans excluding the impact of the acquisition.
Net interest income for the quarter was $44.2 million, an all-time high for the company, with the net interest margin increasing to 3.75% from 3.49% in the previous quarter.
Total non-interest income was $11.7 million for the quarter, driven by positive outcomes on resolution of specific loan assets adding $3.0 million, as well as the gain recognized on the acquisition of $1.2 million. The company was active in its share repurchase plan during the quarter, purchasing 209,591 shares at a weighted average cost of $32.24.
Total deposits increased by $225.6 million from the previous quarter end, reaching $4.4 billion at March 31, 2024, with non-interest-bearing accounts comprising approximately 22.5% of the total deposit balance.
Asset quality remained strong, with nonperforming assets at 0.5% of total assets, and total classified assets at 6.65% of regulatory capital, down from 7.1% at the end of December 2023.
The company’s book capital increased by $3.9 million to $456.8 million, and its tangible capital decreased by $6.7 million to $384.8 million. The company’s ratio of common equity tier 1 capital to risk-weighted assets was 11.1% at March 31, 2024, compared to 11.7% at December 31, 2023.
Equity Bancshares, Inc. also provided non-GAAP financial measures, including the efficiency ratio, return on average assets before income tax provision and provision for loan losses, and tangible common equity and related measures, to provide additional perspectives on its operating results, financial condition, and performance trends.
Equity's chairman and chief executive officer, Brad Elliott, and chief financial officer, Chris Navratil, will hold a conference call and webcast to discuss first-quarter results on Wednesday, April 17, 2024, at 10 a.m. Eastern time or 9 a.m. Central time. A live webcast of the call will be available on the company’s website at investor.equitybank.com, with a replay available afterward.
Equity Bancshares, Inc. is the holding company for Equity Bank, offering a full range of financial solutions and services, including commercial loans, consumer banking, mortgage loans, trust and wealth management services, and treasury management services.
The press release did not include specific data on how the metrics have changed since the last period. Following these announcements, the company's shares moved 3.2%, and are now trading at a price of $32.85. Check out the company's full 8-K submission here.
