Equity Bank(US:EQBK)2026-01-21 21:30Financial Performance - Net income for Q4 2025 was $22.1 million, or $1.15 per diluted share, with an adjusted net income of $23.2 million, or $1.21 per share after acquisition-related expenses[1][3] - Net income for Q4 2025 was $22,084,000, compared to $16,986,000 in Q4 2024, reflecting a growth of 30.9%[33] - Basic earnings per share for Q4 2025 was $1.16, an increase from $1.06 in Q4 2024[34] - Net income allocable to common stockholders was $22,084 thousand for the quarter, compared to a loss of $29,663 thousand in the prior quarter[45] - Diluted earnings per share improved to $1.15, recovering from a loss of $1.55 in the previous quarter[45] Interest Income and Margin - Total interest and dividend income for Q4 2025 was $90,866,000, an increase of 21% from $74,979,000 in Q4 2024[33] - Net interest income after provision for credit losses for the twelve months ended December 31, 2025, was $217,128,000, up from $183,616,000 in 2024, representing an increase of 18.2%[33] - Net interest income after provision for credit losses was $63,518,000 for the quarter, compared to $49,783,000 in the previous year, reflecting a 27.6% increase[35] - The net interest margin for the three months ended December 31, 2025, was 4.47%, an increase from 4.17% in the same quarter of 2024[41] - The interest rate spread for the three months ended December 31, 2025, was 3.80%, compared to 3.52% in the previous year[41] Loan and Deposit Growth - Total loan balances increased by $697.4 million year-over-year, while total deposit balances rose by $763.5 million, driven by the acquisition of NBC[3] - Total loans held-for-investment increased to $4,198,180 thousand as of December 31, 2025, compared to $3,500,816 thousand a year earlier, representing a growth of 19.93%[38] - Total deposits increased to $5,138,264,000 from $4,234,918,000 year-over-year, marking a growth of 21.3%[37] - Total deposits increased to $5,073,696 thousand from $4,243,159 thousand a year ago, representing a growth of 19.59%[38] Non-Interest Income and Expenses - Non-interest income for the quarter was $9.5 million, a 7.4% increase from the previous quarter[10] - Total non-interest income for the twelve months ended December 31, 2025, was $(16,028,000), a significant decrease from $38,822,000 in 2024[33] - Total non-interest expense decreased to $46.6 million from $49.1 million in the prior quarter, with a 5.1% increase when excluding merger expenses[11] - Total non-interest expense for the twelve months ended December 31, 2025, was $174,720,000, compared to $144,157,000 in 2024, indicating an increase of 21.2%[33] Asset Quality and Capital Ratios - Nonperforming assets decreased to $46.7 million, or 0.7% of total assets, compared to $52.6 million, or 0.8% of total assets, in the previous quarter[15] - The allowance for credit losses on loans to total loans ratio was 1.26%, consistent with the previous quarter and up from 1.24% a year ago[38] - Common Equity Tier 1 Capital Ratio rose to 13.08% from 12.84% in the previous quarter, indicating improved capital strength[39] - Total stockholders' equity to total assets ratio was 11.49%, up from 11.18% in the previous quarter, indicating a stronger equity position[39] Future Outlook - The company anticipates potential benefits from the proposed transaction with Frontier Bank, although actual results may vary due to various risks[30]