Equity Bancshares (NYSE:EQBK) executives highlighted record revenue and balance sheet growth in the company’s 2026 first-quarter earnings call, pointing to the impact of the Frontier acquisition and early progress integrating the Nebraska franchise.
Frontier deal drives asset growth and record quarterly revenue
Chairman and CEO Brad Elliott said the company “hit the ground running in 2026,” welcoming new customers and team members in Nebraska on Jan. 1 as the Frontier acquisition took effect. Elliott called entry into Nebraska “a strategic priority” and said the transaction drove a 20% increase in assets and contributed to record quarterly revenue.
Looking at year-over-year growth, Elliott said that compared to March 2025, the company’s asset base has grown by more than 40% and tangible book value per share increased 5%. He also cited “core EPS of $1.32” and “a core return on average tangible equity of 16.1%,” saying the results exceeded the same period of 2025 by 32% and 46%, respectively. Elliott added that core net income grew faster than the company’s modeled expectations for the combined business, contributing to what he described as “an exceptional start to 2026.”
Elliott said capital remains strong and reiterated confidence in a “$5 per share target for 2026.”
Quarterly results: higher net interest income, margin dips as expected
Chief Financial Officer Chris Navratil reported net income of $17.0 million, or $0.80 per diluted share. Excluding what management described as non-core items—merger expense of $5.7 million and Frontier-related provisioning of $6.1 million—Navratil said adjusted earnings were $26.2 million, or $1.23 per diluted share, up from $23.3 million, or $1.21 per diluted share, in the prior quarter.
Navratil said purchase accounting accretion on the loan portfolio totaled $3.3 million in the quarter, compared with $2.3 million in the fourth quarter of 2025. Excluding the after-tax impact of core deposit and intangible amortization, he said adjusted earnings on tangible common equity were $27.7 million versus $24.3 million in the prior quarter, and adjusted return on average tangible common equity was 16.1%.
Net interest income rose to $73.7 million, up $10.2 million linked-quarter, while the net interest margin slipped to 4.33% from 4.47% last quarter. Navratil said the combination of higher earnings and slightly lower margin reflected “the expected impact of integrating Frontier’s balance sheet.” He added that purchase accounting accretion came in about $800,000 ahead of forecast, and that normalizing for that would put margin at 4.29%.
Non-interest income was $9.5 million, which Navratil said held steady as growth in debit card, credit card, mortgage, insurance, and trust and wealth revenue offset declines in security transaction losses and swap fee revenue.
Non-interest expenses were $55 million. Adjusting for M&A charges and a prior-period litigation settlement accrual, Navratil said non-interest expenses were $49.2 million versus $44.1 million, an 11.5% linked-quarter increase driven by Frontier integration. He noted that on a normalized basis, adjusted non-interest expense as a percentage of average assets improved 25 basis points to 2.57%.
Navratil reported an effective tax rate of 23.7%, impacted by periodic items “not expected to recur,” and reiterated a forecast for a full-year rate of 22% to 23%.
Credit metrics: increases tied to Frontier addition; past-due spike tied to renewal process
Bank CEO Rick Sems said the quarter delivered “strong underlying credit.” Non-performing assets ended at $58.3 million, up $11.6 million, “primarily attributed to the addition of Frontier,” and represented 0.8% of total assets, up three basis points. Non-accrual loans increased to $52.4 million from $40.3 million, also primarily driven by Frontier’s addition, Sems said.
Sems described non-accrual exposure as granular, with only four relationships exceeding $1.5 million. Loans past due and non-accrual as a percentage of end-of-period loans rose to 1.86% from 1.53% linked-quarter, with the increase “primarily in the 30-59-day bucket” and concentrated in one acquired market. Sems said it was “a merger process issue, not a credit issue,” tied to bankers navigating a new renewal process following conversion, and he said the company anticipates full resolution in the second quarter.
During Q&A, Elliott provided additional color, saying the past-due issue involved roughly $30 million across “30 or 40 relationships,” not a single credit.
Net charge-offs annualized were 10 basis points of average loans, up three basis points linked-quarter, Sems said. He added that credit trends remain stable and “running below historic norms,” and that the Frontier portfolio is “granular and well underwritten.”
Balance sheet, funding mix, and capital actions
Navratil said the company recorded a $6 million provision for loan losses attributable to Frontier loan balances. Ending ACL coverage was 1.18%, and the ending reserve ratio inclusive of merger-related discounts was 1.77%, up from 1.67%.
Management also discussed capital and repurchases. Navratil said the company repurchased 500,000 shares during the quarter at a weighted average price of $44.74, with 327,662 shares remaining under a September 2025 authorization. Tangible common equity closed at 9.0%, while CET1 and total capital ratios were 11.5% and 14.4%, respectively. At the bank level, the TCE ratio was 9.8%.
On margin and funding, Navratil said purchase accounting contributed 19 basis points in the quarter and the company expects accretion to normalize to about $2.5 million in future quarters absent near-term payoffs on acquired loans. He said Frontier brought a funding portfolio with a higher cost of funds, creating near-term margin tightening while improving future liability sensitivity. The loan-to-deposit ratio ended the quarter at 86%, and management maintained a full-year outlook that includes margin in the 4.20% to 4.35% range with variability tied to purchase accounting.
In response to a question on deposit repricing, Navratil said the company sees “ample” capacity to reprice Frontier deposits. He discussed repricing activity in the quarter and said the benefit was not reflected in March results, with more expected “in April and beyond.”
Elliott said the company would continue to consider buybacks “opportunistically,” while also maintaining capacity for additional M&A. He cited capital generation of “a little over $25 million” per quarter and said the company has “lots of different prospects and lots of different opportunities” on the M&A front.
Loan and deposit activity: production strength, pipeline builds
Sems said loan production totaled $267 million in the quarter, up 21.7% linked-quarter, with originations at an average rate of 6.87%, which he said continued to increase current coupon yield. He described the post-merger period as one that includes “intentional portfolio optimization and planned integration-related attrition,” and said the company has recruited and hired new bankers in Wichita, Oklahoma City, Lincoln, and Omaha.
At quarter end, Sems said the company’s “75% pipeline” stood at $517 million. Line utilization was about 56%, and unfunded positions rose with production growth and the Frontier addition, which Sems said creates “meaningful opportunity going forward.”
On deposits, Sems reported total deposits increased about $1.2 billion during the quarter, reflecting both Frontier and growth across most legacy markets. He noted that outside administrative and Nebraska cost centers, balances increased to $191 million, including more than 5% growth in five community markets. Sems also pointed to North Central Missouri as a notable contributor, with a 7% balance increase in the quarter.
Frontier brought brokered funding positions onto the balance sheet, Sems said, and the company has a plan to “reprice and replace those with core relationship deposits over time.” Non-interest-bearing accounts represented 20.2% of total deposits.
During Q&A, executives also addressed fee income opportunities in the acquired franchise. Elliott pointed to treasury management as the “first and foremost” opportunity, noting the company hired a new head of treasury management. He also cited mortgage fees and wealth management growth, including potential additions to the wealth management team in certain Nebraska markets.
About Equity Bancshares (NYSE:EQBK)
Equity Bancshares, Inc is the bank holding company for Equity Bank, a regional financial services provider headquartered in Wichita, Kansas. As a publicly traded company on the New York Stock Exchange under the ticker EQBK, Equity Bancshares operates a network of branches and lending offices across Kansas, Missouri, Oklahoma, Illinois and Colorado. Its geographic footprint spans both urban and rural markets, reflecting a focus on supporting small businesses, agricultural enterprises and individual consumers throughout the Midwest.
The company’s core business activities encompass a full spectrum of commercial and consumer banking services.
