Equity Bancshares Reports Record Q2 Results

By Bobby Samwell • Wednesday, July 17 15:22 • Permanent Link

Equity Bancshares, Inc. has reported its second-quarter results for 2024, which showcased record net interest income and net interest margin expansion. The company reported a net income of $11.7 million or $0.76 earnings per diluted share for the quarter ended June 30, 2024. Adjusting to exclude costs associated with mergers and the surrender and repositioning of bank owned life insurance, net income was $15.3 million or $0.99 per diluted share.

The company's net interest income for the quarter was $46.5 million, marking an all-time high. Net interest margin increased to 3.94% from 3.75%, driven by an increase in average assets and a positive trend in margin. Additionally, the company was active in its share repurchase plan during the quarter, purchasing 152,982 shares at a weighted average cost of $33.35.

In terms of asset quality, Equity's allowance for credit losses to total loans remained consistent at 1.3%. Nonperforming assets were $27.2 million as of June 30, 2024, or 0.5% of total assets. Total classified assets closed the quarter at 8.47% of regulatory capital, up from 6.9% in the previous quarter.

The company also provided details on its 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.

Looking at the financials, the net interest income for the period was $46.5 million, up from $44.2 million for the three months ended March 31, 2024. The provision for credit losses decreased to $265 thousand compared to $1.0 million in the previous quarter. Total non-interest income was $9.0 million for the quarter, down from $11.7 million for the three months ended March 31, 2024.

Equity Bancshares, Inc. also highlighted changes in its total assets, loans held for investment, and total deposits. Loans held for investment were $3.5 billion at June 30, 2024, decreasing $27.8 million during the quarter. Total assets were $5.2 billion, increasing $6.5 million during the quarter. Total deposits were $4.3 billion at June 30, 2024, decreasing $29.6 million from the previous quarter end.

Today the company's shares have moved 0.7% to a price of $40.69. For more information, read the company's full 8-K submission here.

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