Equity Bancshares (EQBK) Q3 2026 Earnings Call: Record Loan Production and Lincoln Merger
Source Tradingkey
Key Takeaways
- Equity Bancshares, Inc. (NYSE: EQBK) reported Q3 2026 net income of $26.8 million, or $1.29 per diluted share. Core net income was $29.0 million, or $1.40 per share, with core ROTCE of 16.5%.
- Total loans increased by $39 million to $5.44 billion, marking the first quarterly increase since the company’s recent acquisitions closed. Legacy-market loans grew $106 million, or 2.9%, equivalent to nearly 12% annualized growth.
- Loan production reached a company record of $379 million at an average rate of 6.91%, up 20% sequentially and 56% year over year. The 75%-weighted loan pipeline rose 27% from the prior quarter to $534 million.
- Net interest margin declined 16 basis points sequentially to 4.20%, reflecting higher deposit costs, lower earning-asset yields and balance-sheet mix. Management expects Q4 margin of 4.25% to 4.35%, excluding Lincoln Bancorp.
- Deposits fell $136 million to $6.17 billion, mainly due to large rate-sensitive customers and public funds. Excluding public funds, legacy-market deposits were approximately flat sequentially and up 3.6% year over year.
- The Lincoln Bancorp merger remains on track to close in Q4 2026. The combined company is expected to have approximately $9.1 billion in assets, with system conversion planned for Q2 2027.
Key Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| Net income | $26.8 million | $1.29 per diluted share |
| Core net income | $29.0 million | $1.40 per share; in line with Q2 |
| Core ROTCE | 16.5% | Management’s core measure |
| Pretax pre-provision earnings | $36.9 million | Highest since the three-company combination |
| Net interest income | $72.8 million | Down $1.0 million sequentially |
| Net interest margin | 4.20% | Down 16 basis points from Q2 |
| Total loans | $5.44 billion | Up $39 million during the quarter |
| Legacy-market loans | $3.5 billion | Up $106 million, or 2.9% sequentially |
| Loan production | $379 million | Up 20% sequentially and 56% year over year |
| Total deposits | $6.17 billion | Down $136 million, or 2.2% |
| Noninterest income | $10.8 million | Core Q2 amount was $10.3 million |
| Noninterest expense | $47.7 million | $46.7 million excluding $1.0 million of merger costs |
| Efficiency ratio | 54% | Expenses excluding merger costs were flat sequentially |
| Provision expense | $1.7 million | Allowance was 1.18% of loans |
| Net charge-offs | $2.1 million | 15 basis points annualized |
| Tangible common equity ratio | 9.1% | Up 3 basis points sequentially |
| CET1 ratio | 12.15% | Total risk-based capital was 14.94% |
| Tangible book value per share | $32.30 | Down from $33.45 due to a $35 million negative AOCI adjustment |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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