Core Viewpoint - Equity Bancshares, Inc. has successfully completed its merger with Frontier Holdings, LLC, marking a significant expansion into Nebraska with the addition of seven locations [1] Group 1: Merger Details - The merger with Frontier Holdings, LLC, the parent company of Frontier Bank, became effective on January 1, 2026 [1] - This merger allows Equity Bancshares to enter the Nebraska market, enhancing its geographical footprint [1] Group 2: Strategic Importance - The completion of this merger is described as an important milestone for Equity Bancshares, indicating a strategic move to grow its customer base and operational presence [1]

Core Viewpoint - Equity Bancshares, Inc. is set to release its fourth quarter financial results on January 21, 2026, with a press release following the market close [1] Financial Results Announcement - The financial results will be discussed in a conference call and webcast on January 22, 2026, at 10 a.m. eastern time or 9 a.m. central [1]

Market Overview - Markets are experiencing volatility as 2025 approaches, with signs of weakness in the artificial intelligence sector, particularly highlighted by Oracle's data center issues [1] - Economic sentiment is declining, and the job market is showing instability, contributing to investor anxiety [1] Technical Analysis Insights - In uncertain market conditions, investors often rely on technical analysis to predict short-term price movements, focusing on price patterns rather than fundamental metrics [2] - Technical indicators are crucial for identifying stocks with bearish trends, which may indicate further price declines [3] Stocks to Sell Cabot Corp. (NYSE:CBT) - Cabot Corp. has a market cap of $3.5 billion and annual sales of $3.7 billion, operating in the chemicals and materials sector [4] - The stock is facing technical resistance, trading below both the 50-day and 200-day simple moving averages (SMAs), with a weakening Relative Strength Index (RSI) [6] - A short position is recommended due to the stock's recent performance and technical indicators [6] CoreWeave Inc. (NASDAQ:CRWV) - CoreWeave, a cloud infrastructure provider, has a market cap of $26 billion but has seen its stock price drop over 40% in the last three months due to concerns over AI capital spending [7] - The stock is exhibiting a "Death Cross" pattern, indicating a potential continuation of its downtrend [9] Equity Bancshares Inc. (NYSE:EQBK) - Equity Bancshares has a market cap under $1 billion and has recently projected a decline in net interest margin for 2026, despite a 15% stock price increase over the last month [11] - The stock is currently overbought, with an RSI of 77, suggesting it may be a good time to take profits [13] AMREP Corp. (NYSE:AXR) - AMREP Corp. has a market cap of $100 million and reported a nearly 20% year-over-year revenue decline in its latest earnings [14] - The stock has dropped 30% over the last three months, with bearish technical indicators suggesting further downside [16] Truist Financial Corp. (NYSE:TFC) - Truist Financial, with a market cap of $64 billion, has strong fundamentals but is facing analyst downgrades and technical red flags [17] - The stock has gained 12% in the last month but is now considered overbought with an RSI of 76, indicating a potential reversal in momentum [19]

Core Insights - The article emphasizes the importance of efficiency levels in assessing a company's potential for profitability, suggesting that higher efficiency correlates with better price performance [1] Efficiency Ratios - Popular efficiency ratios are crucial for measuring a company's efficiency, including Receivables Turnover, Asset Utilization, Inventory Turnover, and Operating Margin [2][3][4][5] - Receivables Turnover indicates a company's ability to collect debts, with a higher ratio being more desirable [2] - Asset Utilization measures how effectively a company converts its assets into sales, with higher values indicating better efficiency [3] - Inventory Turnover assesses a company's ability to manage inventory relative to its cost of goods sold, where a high ratio suggests efficient inventory management [4] - Operating Margin reflects a company's control over operating expenses, with higher margins indicating better efficiency compared to peers [5] Screening Criteria - The screening process includes a favorable Zacks Rank of 1 (Strong Buy) alongside the efficiency ratios to enhance profitability [6] - The criteria narrowed down a universe of over 7,906 stocks to just 14, focusing on those with efficiency ratios above industry averages [7] Selected Stocks - The top three stocks identified for their efficiency ratios are Owlet (OWLT), Interface (TILE), and Equity Bancshares (EQBK) [8][9] - Owlet has an impressive average four-quarter earnings surprise of 87.8%, indicating strong performance [10] - Interface, known for its modular carpets, has a four-quarter earnings surprise of nearly 30.3% [11] - Equity Bancshares, providing financial services, has a four-quarter earnings surprise of 15.4% [12]

Financial Performance - Net interest income increased to $62,485 thousand, up 25.4% from $49,802 thousand in the previous quarter[233]. - Net income (loss) for the quarter was $(29,663) thousand, compared to $15,264 thousand in the previous quarter[233]. - Basic earnings (loss) per share was $(1.55), a decrease from $0.87 in the previous quarter[233]. - For the three months ended September 30, 2025, the company reported a net loss of $(29.7) million, or $(1.55) diluted earnings per share, compared to a net income of $19.9 million, or $1.28 diluted earnings per share for the same period in 2024, representing a decrease of $49.5 million[245]. - For the nine months ended September 30, 2025, net income was $642 thousand, or $0.04 diluted earnings per share, down from $45.6 million, or $2.95 diluted earnings per share for the same period in 2024, a decrease of $45.0 million[247]. - The company reported an increase in net interest income of $25.9 million for the nine months ended September 30, 2025, despite the overall decrease in net income[247]. - Core earnings per diluted share increased to $1.21, up from $0.99 in the previous quarter[233]. - The efficiency ratio improved to 58.31%, compared to 63.62% in the previous quarter[233]. - The efficiency ratio for the three months ended September 30, 2025, was 58.31%, an increase from 52.59% for the same period in 2024[298]. - Core net income allocable to common stockholders for the three months ended September 30, 2025, was $23,310 thousand, compared to $20,427 thousand for the same period last year, an increase of 13.9%[391]. Financial Condition - Total assets reached $6,365,631 thousand, an increase from $5,373,837 thousand in the previous quarter[233]. - Total deposits grew to $5,094,769 thousand, up from $4,234,918 thousand in the previous quarter[233]. - As of September 30, 2025, the company had consolidated total assets of $6.36 billion, total loans of $4.22 billion, total deposits of $5.09 billion, and total stockholders' equity of $711.9 million[235]. - Total assets increased by $1.03 billion to $6.37 billion as of September 30, 2025, primarily due to a $767.8 million increase in loans held for investment[305]. - Total liabilities rose by $914.6 million to $5.65 billion, driven by a $720.0 million increase in total deposits[305]. - Stockholders' equity increased by $119.0 million to $711.9 million, mainly due to a $74.1 million rise in additional paid-in-capital[306]. - Total loans held for investment increased by $767.8 million, or 21.9%, to $4.27 billion as of September 30, 2025[309]. - Total assets grew to $6,365,631 thousand as of September 30, 2025, compared to $5,355,233 thousand a year earlier, an increase of 18.8%[387]. Credit Losses and Nonperforming Assets - Provision for credit losses was $6,228 thousand, a significant increase from $19 thousand in the previous quarter[233]. - The allowance for credit losses is based on management's evaluation of historical default and loss experience, current economic conditions, and other relevant factors, indicating potential variability in future periods[238]. - As of September 30, 2025, total nonperforming assets amounted to $52.6 million, an increase from $34.7 million on December 31, 2024, representing a 51.5% increase[325]. - Non-accrual loans reached $48.6 million as of September 30, 2025, compared to $27.1 million at the end of 2024, indicating an increase of 79.6%[325]. - The ratio of nonperforming assets to total assets was 0.83% as of September 30, 2025, up from 0.65% at December 31, 2024[325]. - The allowance for credit losses (ACL) totaled $53.469 million, with total loans outstanding at $4.268 billion, resulting in an ACL to total loans ratio of 1.3%[334]. Interest Income and Margin - Interest income increased by $16.1 million for the quarter ended September 30, 2025, compared to the same quarter in 2024, primarily due to a $15.7 million increase from the volume of average interest-earning assets attributed to the NBC merger[255]. - Net interest margin increased by 58 basis points to 4.45% for the quarter ended September 30, 2025, from 3.87% in the same quarter of 2024[258]. - Total interest-earning assets averaged $5.57 billion for the quarter ended September 30, 2025, with a yield of 6.48%, compared to $4.73 billion and a yield of 6.30% in the prior year[251]. - The average yield on loans was 7.10% for the nine months ended September 30, 2025, compared to 7.04% for the same period in 2024[1]. Deposits and Funding - Total deposits as of September 30, 2025, were $5.09 billion, an increase of $720.0 million, or 16.5%, compared to $4.37 billion at December 31, 2024[353]. - The company acquired $806.0 million in deposits from the NBC merger, which contributed significantly to total deposits[353]. - Non-interest-bearing demand deposits rose to $1.15 billion, accounting for 22.5% of total deposits as of September 30, 2025[351]. - Interest-bearing demand deposits decreased by $200.0 million, or 17.0%, primarily due to seasonality of municipal deposits[353]. Expenses and Efficiency - Non-interest expense for the three months ended September 30, 2025, totaled $49.1 million, an increase of $18.8 million or 61.8% compared to the same period in 2024[282]. - Salaries and employee benefits increased by $4.3 million or 23.1% for the three months ended September 30, 2025, primarily due to additional payroll costs from the NBC merger[285]. - The company experienced a significant decrease in mortgage banking income, down $225 thousand or 78.4% for the three months ended September 30, 2025[277]. - The bank reported a non-cash loss of $53.3 million from the repositioning of the investment portfolio during the nine months ended September 30, 2025[370]. Regulatory and Capital Position - The bank is categorized as "well capitalized" under regulatory standards as of September 30, 2025, meeting all capital adequacy requirements[376]. - Common Equity Tier 1 Capital Ratio decreased to 12.84% from 15.07% in the previous quarter[233]. - Tangible common equity rose to $605,646 thousand as of September 30, 2025, compared to $433,940 thousand a year ago, marking an increase of 39.5%[384]. - Book value per common share reached $37.25, up from $32.97 a year earlier, reflecting a year-over-year increase of 13.8%[384]. Market Risk and Interest Rate Sensitivity - The impact on net interest income from a +300 basis points change in prevailing interest rates is projected to be 14.7% for September 30, 2025, compared to 11.9% for December 31, 2024[411]. - Change in prevailing interest rates significantly impacts economic value of equity, with a +300 basis points change resulting in a -4.0% impact for 2025 and -6.5% for 2024[413].

Core Viewpoint - Equity Bancshares, Inc. (NYSE: EQBK) is rated as a Buy, indicating a positive outlook for the stock based on its performance and potential in the market [1]. Company Overview - Equity Bancshares, Inc. is based in Wichita, Kansas, and operates branches in Kansas, Missouri, Oklahoma, and Arkansas, highlighting its regional presence [1]. Investment Focus - The analysis emphasizes a focus on small- to mid-cap companies, which are often overlooked by many investors, while also occasionally reviewing large-cap companies to provide a broader market perspective [1].

Core Viewpoint - Equity Bancshares, Inc. (NYSE: EQBK) is rated as a Buy, indicating a positive outlook for the stock based on its performance and market position [1]. Company Overview - Equity Bancshares, Inc. is based in Wichita, Kansas, and operates branches in Kansas, Missouri, Oklahoma, and Arkansas, highlighting its regional presence [1]. Investment Focus - The analysis primarily targets small- to mid-cap companies, which are often overlooked by many investors, while also occasionally reviewing large-cap companies to provide a broader market perspective [1].

Core Insights - The company has successfully completed two mergers, enhancing its market presence and operational scale in Oklahoma and Nebraska [2][4][19] - The recent merger with NBC added significant assets, including $665 million in loans and $808 million in deposits, which are expected to drive growth [3][19] - The company reported a net loss of $29.7 million for the quarter, primarily due to a bond portfolio repositioning that resulted in a realized loss of $53.4 million [7][8] Financial Performance - Net interest income for the period was $62.5 million, an increase of $12.7 million from the previous quarter, with a margin improvement to 4.45% [8][15] - Non-interest income, excluding the impact of the portfolio repositioning, was $8.9 million, reflecting a $300,000 increase from Q2 [8][9] - Non-interest expenses for the quarter were $49.1 million, adjusted to exclude M&A charges, showing an 8.3% increase due to the NBC acquisition [10][11] Growth Strategy - The company has a strategic roadmap to enter both Oklahoma City and Omaha by 2025, following the recent capital raise [2][6] - Total deposits increased by approximately $860 million during the quarter, with organic deposit growth of about $37 million [22] - Loan production in the quarter was $243 million, representing a 23% increase linked quarter, indicating strong growth potential [20] Asset Quality and Credit Environment - Non-accrual loans closed the quarter at $48.6 million, with classified assets at $82.8 million, reflecting a stable credit environment [13][14] - The company maintains a strong allowance for credit losses (ACL) coverage, sufficient to absorb more than ten years of current period annualized losses [11][14] - Management remains positive about the credit environment and expects stable trends despite broader economic uncertainties [14] Future Outlook - The company anticipates a net interest margin in the range of 4.4% to 4.5% for the fourth quarter, factoring in the impacts of the investment portfolio repositioning [17] - The Frontier acquisition is progressing through the approval process, with expectations to close in 2025 [17][18] - Management is optimistic about growth opportunities in the newly acquired markets and plans to continue expanding its footprint [6][23]

Financial Data and Key Metrics Changes - The company reported a net loss of $29.7 million, or $1.57 per diluted share for the quarter, impacted by a bond portfolio repositioning that resulted in a realized loss of $53.4 million [8][9] - Net interest income for the period was $62.5 million, an increase of $12.7 million linked quarter, with a margin improvement to 4.45%, up 28 basis points from the previous quarter [9][10] - Non-interest expenses for the quarter were $49.1 million, adjusted to exclude M&A charges, reflecting an increase of 8.3% due to the NBC Oklahoma acquisition [9][10] Business Line Data and Key Metrics Changes - The merger with NBC Oklahoma added $665 million in loans and $808 million in deposits, enhancing the company's footprint in Oklahoma [3][4] - Non-interest income, excluding the impact of the portfolio repositioning, was $8.9 million, driven by improvements in customer service charge line items [9] - Loan production in the quarter was $243 million, up 23% linked quarter, with an average rate of 7.14% [19] Market Data and Key Metrics Changes - Total deposits increased approximately $860 million during the quarter, with organic deposit growth of approximately $37 million [21] - Non-interest-bearing accounts closed the quarter at 22.52% of total deposits, up from 21.56% at the end of Q2 [21] - The company anticipates closing the Frontier Holdings transaction in 2025, which will further expand its market presence [17] Company Strategy and Development Direction - The company aims to grow through strategic mergers, having successfully integrated NBC Oklahoma and planning to enter Nebraska through Frontier Holdings [4][5] - Management expressed confidence in executing growth strategies and achieving a projected earnings per share of $5 by 2026 [23] - The company is focused on enhancing its community banking model while expanding its footprint and asset generation capabilities [22] Management's Comments on Operating Environment and Future Outlook - Management remains positive about the credit environment, noting stable credit quality trends across the portfolio despite broader economic uncertainties [14] - The company is closely monitoring consumer behavior and potential inflation impacts, with no significant strain observed in its loan portfolio [36] - Management expects to leverage its capital for growth while maintaining a strong return for shareholders [23] Other Important Information - The company completed a system conversion in late August, with associated expenses primarily impacting the fourth quarter [10] - The ending reserve ratio closed the quarter at 1.36%, reflecting the addition of non-PCE credit marks from NBC Oklahoma [10] Q&A Session Summary Question: Could you discuss your deposit pricing strategy? - Management indicated a consistent approach to adjusting deposit rates in line with FOMC rate changes, with no significant competitive shifts observed [25][26] Question: How is business sentiment in your operating footprint? - Management reported strong business sentiment with no significant impacts from tariffs, remaining bullish on market conditions [28] Question: What is the outlook for loan growth? - Management expects loan production to continue improving, supported by new market entries and a strong pipeline [34] Question: Are there areas of strain in your portfolio? - Management is monitoring various sectors, including agriculture and consumer loans, but currently sees no significant issues [36] Question: What is the outlook for M&A activity? - Management remains optimistic about M&A opportunities, focusing on strategic fit and integration potential [63]

Financial Data and Key Metrics Changes - The company reported a net loss of $29.7 million, or $1.57 per diluted share for the quarter, impacted by a bond portfolio repositioning that resulted in a realized loss of $53.4 million [8][9] - Adjusted pre-tax earnings were $28.4 million, leading to a net income of $22.4 million, or $1.17 per diluted share after tax [8][9] - Net interest income increased to $62.5 million, up $12.7 million from the previous quarter, with a margin improvement to 4.45% [9][10] Business Line Data and Key Metrics Changes - Non-interest income, excluding the impact of the portfolio repositioning, was $8.9 million, reflecting an increase driven by improved customer service charges [9] - Non-interest expenses for the quarter were $49.1 million, with an adjusted figure of $42.9 million, marking an 8.3% increase due to the NBC Oklahoma acquisition [9][10] Market Data and Key Metrics Changes - The addition of NBC Oklahoma contributed $665 million in loans and $808 million in deposits, enhancing the company's market presence in Oklahoma [3][4] - Total deposits increased by approximately $860 million during the quarter, with organic deposit growth of about $37 million [21] Company Strategy and Development Direction - The company is focused on a dual growth model, with recent mergers aimed at expanding its footprint into Oklahoma and Nebraska [4][5] - Management expressed confidence in executing growth strategies and achieving a projected earnings target of $5 per share by 2026 [23] Management's Comments on Operating Environment and Future Outlook - Management remains positive about the credit environment, noting stable credit quality trends despite broader economic uncertainties [14] - The company anticipates continued growth in both loan and deposit portfolios, supported by strong production and pipeline activity [19][20] Other Important Information - The company completed a subordinated debt raise of $75 million to support ongoing growth initiatives [4] - The integration of NBC Oklahoma was completed, with associated expenses expected to taper off in the fourth quarter [10] Q&A Session Summary Question: Could you discuss your deposit pricing strategy? - Management indicated a consistent approach to adjusting deposit rates in line with Federal Open Market Committee (FOMC) rate changes, with no significant competitive shifts observed [25][26] Question: How is business sentiment in your operating footprint? - Management reported strong business sentiment, with no significant impacts from tariffs or economic conditions affecting local businesses [28] Question: What is the outlook for loan growth? - Management expressed confidence in loan production, citing improved consistency and the addition of new markets as factors supporting growth [33][34] Question: Are there areas of strain in your credit portfolio? - Management noted that while they are monitoring all areas closely, they do not see significant strain, particularly in sectors like agriculture and consumer lending [36][37] Question: What is the outlook for M&A activity? - Management stated that the environment for M&A remains favorable, with ongoing conversations and opportunities being evaluated strategically [63]