EQBK Swings to Q3 Loss on Massive Securities Hit, Assets Surge

TL;DR

**EQBK's Q3 loss is a red flag; the massive securities hit and rising credit losses mean this bank is facing serious headwinds.**

AI Summary

Equity Bancshares Inc. (EQBK) reported a significant net loss of $29.663 million for the three months ended September 30, 2025, a sharp decline from a net income of $19.851 million in the same period of 2024. This was primarily driven by a substantial net loss of $53.352 million from securities transactions in Q3 2025, compared to a net gain of $206,000 in Q3 2024. Total assets increased by 19.39% to $6.366 billion as of September 30, 2025, from $5.332 billion at December 31, 2024, largely due to a $757.569 million increase in loans, net, and a $315.662 million increase in cash and due from banks. Total deposits also grew by 16.46% to $5.095 billion from $4.375 billion over the same period. Net interest income saw a robust increase of 35.75% to $62.485 million for Q3 2025, up from $46.031 million in Q3 2024, driven by higher loan interest income. However, the provision for credit losses surged to $6.228 million in Q3 2025 from $1.183 million in Q3 2024, indicating increased credit risk. Merger expenses also significantly impacted profitability, rising to $6.163 million in Q3 2025 from $618,000 in Q3 2024.

Why It Matters

This filing reveals a challenging quarter for Equity Bancshares, with a significant net loss primarily due to securities transactions. For investors, the substantial increase in the provision for credit losses and merger expenses signals potential headwinds and integration risks, impacting future profitability and dividend sustainability. Employees might face uncertainty if cost-cutting measures are implemented to offset losses. Customers could see changes in service offerings or rates as the bank navigates its financial performance and integrates acquired operations. In the broader market, this performance highlights the volatility in the banking sector, especially for regional banks managing interest rate risks and M&A activities, potentially influencing peer valuations and investor sentiment towards similar institutions.

Risk Assessment

Risk Level: high — The risk level is high due to a net loss of $29.663 million in Q3 2025, a significant reversal from a $19.851 million net income in Q3 2024. This was primarily driven by a $53.352 million net loss from securities transactions. Additionally, the provision for credit losses increased sharply to $6.228 million in Q3 2025 from $1.183 million in Q3 2024, indicating deteriorating asset quality or increased risk exposure.

Analyst Insight

Investors should exercise caution and thoroughly investigate the nature of the $53.352 million securities loss and the increased provision for credit losses. Consider reducing exposure or holding off on new investments until management provides clear strategies to mitigate these significant financial drains and stabilize earnings.

Financial Highlights

net Income

-$29.663M

eps

-$1.55

revenue

$62.485M

total Assets

$6.366B

cash Position

$315.662M

revenue Growth

35.75%

Key Numbers

• $29.663M — Net Loss (For the three months ended September 30, 2025, a significant decline from $19.851M net income in Q3 2024.)
• $53.352M — Net Loss from Securities Transactions (For the three months ended September 30, 2025, a major contributor to the net loss, compared to a $206K gain in Q3 2024.)
• $6.366B — Total Assets (As of September 30, 2025, an increase of 19.39% from $5.332B at December 31, 2024.)
• $5.095B — Total Deposits (As of September 30, 2025, an increase of 16.46% from $4.375B at December 31, 2024.)
• $62.485M — Net Interest Income (For the three months ended September 30, 2025, a 35.75% increase from $46.031M in Q3 2024.)
• $6.228M — Provision for Credit Losses (For the three months ended September 30, 2025, a substantial increase from $1.183M in Q3 2024.)
• $6.163M — Merger Expenses (For the three months ended September 30, 2025, a significant rise from $618K in Q3 2024.)
• ($1.55) — Basic Earnings (Loss) Per Share (For the three months ended September 30, 2025, down from $1.30 in Q3 2024.)
• 19,076,412 — Shares of Class A common stock outstanding (As of October 31, 2025.)
• $4.720M — Accumulated Other Comprehensive Income (Loss) (As of September 30, 2025, a positive shift from ($55.181M) at December 31, 2024.)

Key Players & Entities

• EQUITY BANCSHARES INC (company) — Registrant as specified in its charter
• Equity Bank (company) — Subsidiary of Equity Bancshares, Inc.
• New York Stock Exchange (regulator) — Exchange where Class A Common Stock is registered
• Federal Reserve System (regulator) — Influences monetary and fiscal policies
• SEC (regulator) — Securities and Exchange Commission
• $29.663 million (dollar_amount) — Net loss for Q3 2025
• $53.352 million (dollar_amount) — Net loss from securities transactions in Q3 2025
• $6.228 million (dollar_amount) — Provision for credit losses in Q3 2025
• $6.366 billion (dollar_amount) — Total assets as of September 30, 2025
• $5.095 billion (dollar_amount) — Total deposits as of September 30, 2025

FAQ

Risk Factors

• External Economic and Market Factors [high — market]: External economic and/or market factors can significantly impact the company's financial performance. These factors are inherently uncertain and difficult to predict, potentially leading to actual results differing materially from forward-looking statements.

Industry Context

The banking industry is subject to evolving economic conditions and regulatory scrutiny. Equity Bancshares operates within this environment, facing challenges related to interest rate fluctuations, credit risk management, and the impact of mergers and acquisitions on profitability. Growth in loans and deposits indicates expansion, but the increase in provision for credit losses suggests a cautious outlook on asset quality.

Regulatory Implications

As a financial institution, EQBK is subject to stringent regulatory oversight. Changes in economic conditions can trigger increased regulatory attention to capital adequacy and loan loss provisioning. Merger expenses also highlight the complexities of regulatory approvals and integration processes.

What Investors Should Do

1. Monitor the impact of securities transactions on future earnings.
2. Analyze the drivers behind the increased provision for credit losses.
3. Evaluate the strategic rationale and integration progress of recent mergers.
4. Assess the sustainability of net interest income growth.

Glossary

Consolidated Balance Sheets

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time. (Provides a snapshot of EQBK's financial position as of September 30, 2025, showing significant growth in assets and deposits.)

Consolidated Statements of Income

A financial statement that reports a company's financial performance over a specific accounting period, showing revenues, expenses, and net income or loss. (Details EQBK's significant net loss of $29.663 million for Q3 2025, driven by securities transactions and increased provisions.)

Accumulated Other Comprehensive Income (Loss)

Represents unrealized gains and losses that are not included in net income but are reported in a separate section of the income statement. (Shows a positive shift for EQBK to $4.720M as of September 30, 2025, from a substantial loss of ($55.181M) at December 31, 2024, indicating improved unrealized gains.)

Provision for Credit Losses

An expense set aside by a financial institution to cover potential losses from loans that may default. (The surge to $6.228 million in Q3 2025 from $1.183 million in Q3 2024 highlights an increase in perceived credit risk for EQBK.)

Merger Expenses

Costs incurred by a company during the process of merging with or acquiring another company. (The significant increase to $6.163 million in Q3 2025 from $618,000 in Q3 2024 indicates substantial M&A activity impacting EQBK's profitability.)

Year-Over-Year Comparison

Equity Bancshares Inc. reported a dramatic shift in profitability for the three months ended September 30, 2025, moving from a net income of $19.851 million in Q3 2024 to a net loss of $29.663 million. This was largely due to a significant net loss of $53.352 million from securities transactions, a stark contrast to a gain in the prior year. While total assets and deposits showed healthy growth of 19.39% and 16.46% respectively, the provision for credit losses more than quintupled, and merger expenses increased tenfold, indicating heightened credit risk and significant M&A activity impacting the current period's results.

Key Financial Figures

• $0.01 — lass Class A, Common Stock, par value $0.01 per share Trading Symbol EQBK Nam

Filing Documents

• eqbk-20250930.htm (10-Q) — 15142KB
• eqbk-ex31_1.htm (EX-31.1) — 14KB
• eqbk-ex31_2.htm (EX-31.2) — 14KB
• eqbk-ex32_1.htm (EX-32.1) — 14KB
• eqbk-ex32_2.htm (EX-32.2) — 14KB
• 0001193125-25-262699.txt ( ) — 60331KB
• eqbk-20250930.xsd (EX-101.SCH) — 3033KB
• eqbk-20250930_htm.xml (XML) — 19443KB

Financial Statements

Financial Statements 5 Consolidated Balance Sheets 5 Consolidated Statements of Income 6 Consolidated Statements of Comprehensive Income 7 Consolidated Statements of Stockholders' Equity 8 Consolidated Statements of Cash Flows 10 Condensed Notes to Interim Consolidated Financial Statements 12 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 61 Overview 63 Critical Accounting Policies 63 Results of Operations 64 Financial Condition 74 Liquidity and Capital Resources 84 Non-GAAP Financial Measures 86 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 91 Item 4.

Controls and Procedures

Controls and Procedures 93 Part II Other Information 94 Item 1.

Legal Proceedings

Legal Proceedings 94 Item 1A.

Risk Factors

Risk Factors 94 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 94 Item 3. Defaults Upon Senior Securities 94 Item 4. Mine Safety Disclosures 94 Item 5. Other Information 94 Item 6. Exhibits 94 Important Notice about Information in this Quarterly Report Unless we state otherwise or the context otherwise requires, references in this Quarterly Report to "we," "our," "us," "the Company" and "Equity" refer to Equity Bancshares, Inc. and its consolidated subsidiaries, including Equity Bank, which we sometimes refer to as "Equity Bank," "the Bank" or "our Bank." The information contained in this Quarterly Report is accurate only as of the date of this Quarterly Report on Form 10-Q and as of the dates specified herein. 2 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as "may," "should," "could," "predict," "potential," "believe," "will likely result," "expect," "continue," "will," "anticipate," "seek," "estimate," "intend," "plan," "project," "forecast," "goal," "target," "would" and "outlook," or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management's beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any

: Financ ial Statements

Item 1: Financ ial Statements EQUITY BANCSHARES, INC. CONSOLIDATED B ALANCE SHEETS September 30, 2025, and December 31, 2024 (Dollar amounts in thousands) (Unaudited) September 30, December 31, 2025 2024 ASSETS Cash and due from banks $ 699,165 $ 383,503 Federal funds sold 245 244 Cash and cash equivalents 699,410 383,747 Interest-bearing deposit in other banks 574 — Available-for-sale securities 903,858 1,004,455 Held-to-maturity securities, fair value of $ 5,378 and $ 5,214 5,243 5,217 Loans held for sale 617 513 Loans, net of allowance for credit losses of $ 53,469 and $ 43,267 4,215,118 3,457,549 Other real estate owned, net 3,147 4,773 Premises and equipment, net 132,857 117,132 Bank-owned life insurance 146,891 133,032 Federal Reserve Bank and Federal Home Loan Bank stock 33,713 27,875 Interest receivable 34,751 28,913 Goodwill 77,573 53,101 Core deposit intangibles, net 22,895 14,969 Other 88,984 100,771 Total assets $ 6,365,631 $ 5,332,047 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits Demand $ 1,147,201 $ 954,065 Total non-interest-bearing deposits 1,147,201 954,065 Demand, savings and money market 2,882,625 2,684,197 Time 1,064,943 736,527 Total interest-bearing deposits 3,947,568 3,420,724 Total deposits 5,094,769 4,374,789 Federal funds purchased and retail repurchase agreements 42,220 37,246 Federal Home Loan Bank advances 341,378 178,073 Subordinated debt 98,174 97,477 Contractual obligations 16,664 12,067 Interest payable and other liabilities 60,534 39,477 Total liabilities 5,653,739 4,739,129 Commitments and contingent liabilities, see Notes 12 and 13 Stockholders' equity, see Note 8 Common stock 249 230 Additional paid-in capital 658,481 584,424 Retained earnings 186,718 194,920 Accumulated other comprehensive income (los

View Full Filing

View this 10-Q filing on SEC EDGAR