Q3 2024 Equity Bancshares Inc Earnings Call Transcript
Key Points
- Equity Bancshares Inc (EQBK) reported a net income of $19.8 million, or $1.28 per diluted share, with adjusted net income of $20.2 million or $1.31 per diluted share.
- The company achieved a significant recovery of $8.5 million from a defaulted borrower, showcasing their expertise in managing problem credits.
- Loan balances increased by $147 million during the quarter, indicating strong growth and a robust pipeline.
- Equity Bancshares Inc (EQBK) successfully closed and converted its second bank merger of 2024, integrating KansasLand into its operations.
- The company increased its dividend by 25% and reported a tangible book value per share growth of 10.4%.
- Net interest income was flat quarter-over-quarter, and net interest margin slightly declined from 3.94% to 3.87%.
- Non-accrual loans as a percentage of total loans increased by 10 basis points to 0.87%, driven by the addition of one relationship.
- The company noted an increase in negative migration of small loans, indicating emerging credit quality concerns.
- Cost of interest-bearing deposits increased to 2.85%, contributing to a flat total cost of funds at 3.11%.
- Inflationary pressures are affecting smaller operators and quick service restaurants, leading to pricing pressures and margin constraints.
Hello, everyone, and welcome to Equity Bancshares Third Quarter 2024 Earnings Call. My name is Lydia and I'll be your operator today. (Operator Instructions)
I'll now hand you over to Brian Katzfey to begin. Please go ahead.
Good morning. Thank you for joining us today for Equity Bancshares third quarter earnings call.
Before we begin, let me remind you that today's call is being recorded and is available via webcast at investor.equitybank.com, along with our earnings release and presentation material. Today's presentation contains forward-looking statements which are subject to certain risks, uncertainties, and other factors that could cause actual results to differ materially from those discussed. Following the presentation, we will allow time for questions and further discussion. Thank you all for joining us.
With that, I'd like to turn the call over to our Chairman and CEO, Brad Elliott.
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