Equity Bank(US:EQBK)2026-01-22 16:00Financial Data and Key Metrics Changes - The company ended 2025 with $6.4 billion in assets, up from $5.3 billion at the beginning of the year, marking nearly 50% growth [4] - Net income for the quarter was reported at $22.1 million or $115 per diluted share, with adjusted earnings of $23.3 million or $121 per diluted share, compared to $22.4 million or $117 per diluted share in the previous quarter [7] - Net interest income for the quarter was $63.5 million, an increase of $1 million from the last quarter, with a margin of 4.47%, up two basis points from 4.45% [7][8] Business Line Data and Key Metrics Changes - Non-interest income for the quarter was $9.5 million, up $400,000 from the previous quarter [7] - Non-interest expenses for the quarter were $46.6 million, with adjusted non-interest expenses at $44.1 million, an increase of 2.7% from the previous quarter [8] - Loan production in the quarter was $220 million, up $100 million compared to the same period last year, although it was down late in the quarter [18] Market Data and Key Metrics Changes - Total deposits increased by approximately $43.5 million during the quarter, with core deposit expansion of $123.5 million, offset by a decline in brokered deposits of $80 million [19] - Non-interest bearing accounts closed the quarter at 22.4% of total deposits [19] - The company anticipates loans as a percentage of average earning assets to be approximately 80% in Q1 2026 [14] Company Strategy and Development Direction - The company aims to earn more than $5 per share in 2026, focusing on creating opportunities for growth and rolling out new products [4][5] - The merger with Frontier is expected to add non-interest expenses of $23 million-$24 million and non-interest income of $2 million-$3 million [15] - The company is strategically focused on using technology to improve service and efficiency, with a strong emphasis on data utilization [5] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the credit environment and outlook for 2026, noting stable credit quality trends across the portfolio [11][12] - The company is well-positioned to grow throughout its markets, with expectations for realized growth in the balance sheet and non-interest revenue lines [20] - Management highlighted the importance of maintaining pricing discipline in a competitive environment, opting not to lower rates excessively [25][27] Other Important Information - The company repurchased 172,338 shares at a weighted average cost of $41.69 during the quarter, with 872,662 shares remaining under the repurchase authorization [9] - The total capital ratio closed the quarter at 16.3%, with a common equity tier 1 (CET1) ratio of 13.1% [10] Q&A Session Summary Question: Does the margin guide include expected accretion from Frontier? - Yes, the margin guide does include the expected accretion from Frontier [24][25] Question: Are there any changes in competition regarding pricing or underwriting standards? - The company is seeing some pressure on pricing but has decided to maintain higher pricing standards [25][26] Question: What types of loans are available for pullback from Frontier? - The loans are a combination of various types, estimated at around $50 million [29][30] Question: What is the outlook for cost savings from the Frontier merger? - The company maintains a target of around 23% in cost savings, with potential for improvement as integration progresses [31][32] Question: What is the company's approach to capital management post-merger? - The company is open to both buybacks and M&A opportunities, depending on market conditions and capital needs [34][35] Question: How is deposit generation performing in new markets? - Deposit account gathering is positive, with the company focusing on disciplined pricing strategies [44][46] Question: Which markets are expected to outperform in loan growth? - Missouri and Oklahoma are highlighted as strong markets for potential growth [48][49]