Equity Bancshares Inc (EQBK, Financial), the Wichita-based holding company of Equity Bank, announced its third-quarter results on October 17, 2023. The company reported a net income of $12.3 million and $0.80 earnings per diluted share for the quarter ended September 30, 2023. This performance was largely driven by the company's ability to adapt to the banking environment and deliver sophisticated and customized solutions to its customers.
Financial Highlights
During the quarter, the company realized a Net Interest Margin growth of 13 basis points and a Net Interest Income growth of $1.6 million. The pre-tax, pre-provision net income for the quarter was $15.5 million, up $2.3 million linked quarter. This growth was driven by an increase in both net interest income and non-interest income.
Equity Bancshares Inc (EQBK, Financial) continued to emphasize investor returns through share repurchase and quarterly dividends. The company's Board authorized a 20% increase in quarterly dividend to $0.12 per share and authorized the repurchase of up to 1 million shares.
Asset Quality and Capital
Equity Bancshares Inc (EQBK, Financial) reported a decrease in classified loans as a percentage of total risk-based capital at Equity Bank. The ratio was 6.3%, down from 7.9% as of June 30, 2023. The company's ratio of common equity tier 1 capital to risk-weighted assets was 12.7%, and the total capital to risk-weighted assets was 16.4% at September 30, 2023.
Looking Ahead
Equity Bancshares Inc (EQBK, Financial) remains strategically positioned to assess both organic and acquisitive growth opportunities. The company's strong tangible and regulatory capital ratios, along with positive credit quality trends, continue to drive its success. With the ability to deliver sophisticated and customized solutions, the company is well-positioned for organic growth, sustainability, and competitive advantage.
