Equity Bancshares, Inc. Q3 FY2025 earnings call

• Kicked off the quarter with the merger of NBC on July 2, adding locations in Oklahoma including Oklahoma City. - Converted NBC onto Equity Bank's core system by late August. - Raised $75 million in subordinated debt. - Announced merger with Frontier Holdings, extending footprint into Nebraska. - Net loss of $29.7 million for the quarter, but pre-tax earnings adjusted for certain items were $28.4 million. - Asset quality saw additions from NBC with non-accrual and classified assets, but management expects no excessive losses. - Loan production was $243 million, up 23% linked quarter. - Total deposits increased ~$860 million, with organic growth of ~$37 million excluding NBC and brokered accounts.

Net interest income for the period was $62.5 million, up $12.7 million from the linked quarter. Margin was 4.45%, an improvement of 28 basis points from the linked quarter. Non-interest income, excluding the impact of the portfolio repositioning for the quarter, was $8.9 million, up $300,000 from Q2. Non-interest expenses for the quarter were $49.1 million, with adjusted non-interest expenses (excluding M&A charges) at $42.9 million, up 8.3%. The merger with NBC added $665 million in loans and $808 million in deposits. Loans were 76.2% of interest-earning assets for the quarter.

• Anticipates margin in Q4 2025 to be in the range of 4.4% to 4.5%. - Outlook for 2026 includes the impact of the Frontier merger. - Provisioning outlook is reflective of operating basis, with conservatism factored in.

• Credit risks from NBC acquisition additions. - Economic uncertainties including tariffs. - Inflation impacts. - Potential consumer and agriculture issues. - Watch for a potential bubble in the economy.

Q: Terry McEvoy asked about deposit pricing strategy and business sentiment.

A: Chris Navratil and Rick Sems discussed pricing aligning with Fed rate cuts and positive business sentiment.

Q: Jeff Rulis asked about deposit cost increase and loan growth expectations.

A: Chris Navratil attributed deposit cost increase to NBC, and discussed loan growth factors including production and payoff activity.

Q: Nathan Race asked about NBC team contribution to loan growth.

A: Rick Sems discussed NBC team's ability to take advantage of larger hold limits and expanded products.

Q: Damon Del Monte asked about provision outlook and securities portfolio.

A: Chris Navratil discussed operating basis provision and securities portfolio ratio.

Q: Brett Rabatin asked about payoffs and M&A outlook.

A: Rick Sems and Brad Elliott discussed payoff drivers and M&A strategy.