Equity Bancshares core earnings of $1.40 beat estimates despite revenue miss
Key Facts
Equity Bancshares reported third-quarter 2026 results on October 14, posting adjusted core earnings of $1.40 per share, beating earnings expectations while revenue fell short of estimates. According to Investing.com, analysts had forecast core earnings of $1.29 per share, below the reported figure. Revenue totaled $83.74 million for the quarter, according to the site's coverage of the earnings release. That compared with consensus revenue estimates of $84.91 million for the same period. Despite missing expectations, revenue rose 14.3% from the year-earlier quarter.
On a GAAP basis, the company reported third-quarter net income of $26.8 million, according to its filing with the U.S. Securities and Exchange Commission. That represented diluted earnings of $1.29 per share, its GAAP earnings for the period. In the second quarter of the same year, the company reported GAAP net income of $26.4 million, according to its previous earnings filing. Diluted earnings per share were $1.27 then, marking a quarter-on-quarter increase in the latest results. Non-GAAP core earnings were $1.41 per share in the previous quarter, above the third-quarter level.
Equity Bancshares reported third-quarter net interest income of $72.8 million, according to the company's filing. Net interest income had totaled $73.9 million in the second quarter before declining in the latest period. Net interest margin was 4.20% in the third quarter, according to the reported results. That compared with a margin of 4.36% in the previous quarter, marking a quarterly decline alongside the drop in net interest income. Loans, meanwhile, increased by $39.2 million from the previous quarter, while loan production totaled $379.3 million during the period.
On the funding side, deposits fell by $136.4 million from the previous quarter, according to the company's third-quarter earnings filing. On credit quality, nonperforming assets totaled $75.4 million at period-end, up from the end of the previous quarter. Those assets had totaled $66.3 million at the end of the second quarter, according to the previous results filed with the U.S. regulator. The company recorded a provision for credit losses of $1.7 million in the third quarter. Alongside the earnings release, Equity Bancshares raised its quarterly cash dividend to $0.22 per share.
The results come as the merger with Lincoln Bancorp remains pending following its announcement on September 3, 2026. The merger consideration was valued at about $123.8 million at announcement, according to the deal statement filed with the U.S. Securities and Exchange Commission. The consideration consists of approximately 77.5% Equity Bancshares stock and 22.5% cash, under the announced merger terms. The deal would add 16 banking locations to Equity Bancshares' network and expand its presence in Iowa. Chief Executive Brad Elliott described the merger in the announcement as "an important step in our long-term strategy in Iowa."
In the market, Equity Bancshares shares fell 5.95% in after-hours trading on the day of the earnings release, according to Investing.com. Management expects net interest margin of between 4.25% and 4.35% in the fourth quarter of 2026, according to the earnings filing. That outlook excludes the impact of the Lincoln Bancorp transaction on the margin in the coming period. According to the merger announcement, the company aims to complete the deal in the fourth quarter of 2026. Closing remains subject to regulatory and shareholder approvals, along with the other closing conditions set out in the deal announcement.