Equity Bank(US:EQBK)2025-04-15 20:30Financial Performance - Net income for the quarter ended March 31, 2025, was $15.0 million, or $0.85 per diluted share, compared to $17.0 million, or $1.04 per diluted share in the prior quarter[3]. - Non-interest income for the quarter was $10.3 million, an increase from $8.8 million in the previous quarter, driven by a $1.7 million improvement in Bank Owned Life Insurance[9]. - Net income for the quarter was $15,041,000, down from $16,986,000 in the previous quarter, representing a decrease of about 11.5%[33]. - Adjusted net income allocable to common stockholders was $15,945 thousand for the latest quarter, down from $17,832 thousand in the previous quarter, a decrease of 10.5%[42]. - Core earnings per diluted share decreased to $0.90 for the quarter ended March 31, 2025, down from $1.10 in the previous quarter[36]. - Diluted earnings per share decreased to $0.85 from $1.04 in the previous quarter, a decline of 18.3%[42]. Interest Income and Margin - Net interest margin for the quarter was 4.27%, positively impacted by non-recurring nonaccrual reversals of approximately $2.3 million; excluding these items, the margin was 4.08%[4]. - Net interest income after provision for credit losses was $47,570,000, compared to $49,375,000 in the previous quarter, reflecting a decrease of approximately 3.6%[33]. - For the three months ended March 31, 2025, net interest income was $50,292,000, an increase from $44,182,000 for the same period in 2024, representing a growth of 7.5%[38]. - The net interest margin increased to 4.27% for the three months ended March 31, 2025, up from 3.75% in the same period last year[38]. - The interest rate spread improved to 3.63% for the three months ended March 31, 2025, compared to 3.10% for the same period in 2024[38]. Loan and Deposit Growth - Loan balances increased to $3.63 billion, reflecting linked quarter growth of $130.8 million, or 15.2% annualized[4]. - Total deposits were $4.4 billion, consistent with the prior quarter, with a decrease of $109.4 million in deposits excluding brokered balances due to seasonal outflows[4]. - Total loans held-for-investment increased to $3,631,628 thousand as of March 31, 2025, up from $3,500,816 thousand at December 31, 2024, representing a growth of 3.75%[36]. - Total deposits reached $4,405,364 thousand, up from $4,374,789 thousand, reflecting a growth of 0.7%[35]. - Time deposits increased to $841,463 thousand from $736,527 thousand, reflecting a growth of 14.2%[35]. Expenses and Provisions - Total non-interest expense was $39.1 million, up from $37.8 million in the previous quarter, primarily due to payroll dynamics and higher incentive accruals[10]. - The provision for credit losses was $2.7 million, compared to $98 thousand in the previous quarter, reflecting loan growth and economic uncertainty[7]. - Provision for credit losses was $2,722,000, compared to a reversal of $98,000 in the previous quarter, indicating a significant change in credit loss expectations[33]. Capital and Equity - Tangible common equity to tangible assets closed the period at 10.1%[4]. - The Company's ratio of common equity tier 1 capital to risk-weighted assets was 14.7% at March 31, 2025, up from 14.5% at the end of the previous quarter[17]. - Stockholders' equity increased to $617,324 thousand from $592,918 thousand, indicating a rise of 4.2%[35]. - Common Equity Tier 1 Capital Ratio improved to 14.70% as of March 31, 2025, compared to 14.51% at December 31, 2024[37]. - Total stockholders' equity to total assets ratio was 11.34% as of March 31, 2025, compared to 11.12% at December 31, 2024[37]. Mergers and Acquisitions - The Company announced a merger with NBC Corp. of Oklahoma, which has approximately $682 million in loans and $816 million in deposits, expected to close in Q3 2025[4]. - The company is currently facing uncertainties related to the proposed transaction with NBC Corp. of Oklahoma, which may impact future performance[29].