Equity Bancshares, Inc. reported its third-quarter results, showcasing significant growth and positive financial developments. The company's net income for the quarter ended September 30, 2024, was $19.8 million, or $1.28 earnings per diluted share. Notably, this included a favorable resolution of a significant problem loan, resulting in an $8.5 million pre-tax benefit.
The company also closed its merger with Kansasland, adding $28.3 million in loan balances and $42.4 million in deposit balances. Excluding those acquired from Kansasland, the company experienced a 13.6% annualized growth in loan balances, amounting to $117.8 million.
Other financial highlights include a 10.4% increase in tangible book value to $28.38 per share and a 25% increase in the quarterly dividend to $0.15 per share, marking the third consecutive annual increase.
Net interest income for the period declined slightly to $46.0 million, with a net interest margin of 3.87%. The provision for credit losses increased to $1.2 million, primarily due to growth in loan balances during the period. Total non-interest income was $9.3 million, including a gain realized on the acquisition of Kansasland of $831 thousand.
Total non-interest expense for the quarter was $30.3 million, down from $38.9 million in the previous quarter, driven by various factors including a $8.5 million gain from a borrower's repurchase of the company's preferred equity interest.
The company's loans held for investment grew to $3.6 billion, a 16.9% increase on an annualized basis, while total assets reached $5.4 billion at the end of the period.
Equity Bancshares also noted improvements in its capital, with tangible book value per share increasing by 10.4% to $28.4. The company's ratio of common equity tier 1 capital to risk-weighted assets was 11.4%, and the total leverage ratio was 9.6% at the end of the quarter.
Today the company's shares have moved 2.0% to a price of $44.32. For more information, read the company's full 8-K submission here.
