The GAAP EPS miss vs consensus may pressure the stock near-term, but the core earnings beat and strong organic loan growth provide underlying support. Watch Q4 margin guidance of 4.25-4.35% and Lincoln Bancorp deal close for the next catalyst.
Price Chart
Executive Summary
Equity Bancshares reported Q3 2026 net income of $26.8M ($1.29 GAAP diluted EPS) vs consensus of $1.32, a 2.2% miss. Core EPS of $1.40 beat the $1.32 consensus by 6.1%, driven by strong organic loan growth (11.9% annualized in legacy markets) and a 22% dividend increase to $0.22/share. Net interest margin compressed to 4.20% from 4.36% QoQ due to rising deposit costs, but management guided for margin recovery to 4.25-4.35% in Q4. The announced merger with Lincoln Bancorp adds scale in Iowa.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $1.29 vs consensus $1.32 (2.2% miss)
- Core EPS of $1.40 vs consensus $1.32 (6.1% beat)
- Net interest income $72.8M, down $1.0M QoQ; NIM 4.20% vs 4.36% prior quarter
- Legacy market organic loan growth annualized 11.9%; total loans up $39.2M QoQ
- Quarterly dividend raised 22% to $0.22/share
- Merger with Lincoln Bancorp announced, expected to close Q4 2026
- Nonperforming assets rose to 0.99% of total assets from 0.86% QoQ
- Provision for credit losses $1.7M, up from $1.3M prior quarter
- Net charge-offs $2.1M (15 bps annualized); ACL 1.18% of loans
- Tangible book value per share $32.93, down from $33.45 QoQ due to AOCI impact
Financial Impact
GAAP EPS $1.29 vs $1.32 consensus (-$0.03); Core EPS $1.40 vs $1.32 consensus (+$0.08); NII $72.8M vs $73.9M QoQ; dividend increased to $0.22/share
Risk Factors
- Net interest margin compression from rising deposit costs could persist
- Nonperforming assets increased to 0.99% of assets, signaling credit quality deterioration
- Integration risk from Lincoln Bancorp acquisition and ongoing Frontier merger
- AOCI losses from rising rates reduced tangible book value by $0.52/share QoQ
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-421701 |
| Document: eqbk-20261014.htm | 0001193125-26-421701 |
| Document: eqbk-ex99_2.htm | 0001193125-26-421701 |
| Document: 0001193125-26-421701-index-headers.html | 0001193125-26-421701 |
| Document: 0001193125-26-421701-index.html | 0001193125-26-421701 |
| Document: 0001193125-26-421701.txt | 0001193125-26-421701 |
| 8-K Data (Synthetic) | 0001193125-26-421701 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | EFFECT | $47.54 | awaiting T+5 | — | $49.13 (+3.36%) |
Oct 16, 2026 9d ago | S-4/A | $47.23 | awaiting T+5 | — | $49.13 (+4.03%) |
Oct 16, 2026 10d ago | 425 | $47.51 $48.64 | ▲ +2.38% | ▲ +2.29% | $49.13 (+3.42%) |
Oct 14, 2026 11d ago | 8-K | $46.68 $48.64 | ▲ +4.20% | ▲ +5.21% | $49.13 (+5.26%) |
Oct 6, 2026 19d ago | 425 | $47.00 $46.57 | ▼ −0.91% | ▲ +0.07% | $49.13 (+4.54%) |
Oct 2, 2026 23d ago | S-4 | $47.54 $47.23 | ▼ −0.65% | ▼ −1.07% | $49.13 (+3.36%) |
Oct 2, 2026 23d ago | 8-K | $47.54 $47.23 | ▼ −0.65% | ▼ −1.07% | $49.13 (+3.36%) |
Sep 22, 2026 4w ago | 425 | $47.58 $47.14 | ▼ −0.92% | ▼ −0.25% | $49.13 (+3.27%) |
Sep 18, 2026 5w ago | 425 | $48.38 $47.81 | ▼ −1.19% | ▼ −0.17% | $49.13 (+1.55%) |
Sep 4, 2026 7w ago | 425 | $50.13 $50.14 | ▲ +0.02% | ▲ +1.14% | $49.13 (−1.98%) |
US Market Status
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