Equity Bancshares' quarterly earnings, revenue beat analyst estimates - Wichita Business Journal
Brad Elliott, Equity chairman and CEO, spoke about moves the bank has made to "emphasize credit quality." Equity Bancshares (NYSE: EQBK) reported quarterly results that topped Wall Street forecasts of $12.3 million, beating analyst expectations of $0.73 per share. Asset quality continued to be a point of emphasis for Equity Bank, with classified loans closing at $37.3% of total bank regulatory capital, the lowest mark in the bank's history. Equity Bank has consistently highlighted balance sheet and asset quality after the overall regional banking industry turmoil in the spring following the failures of Silicon Valley Bank and others. Total deposits in the third quarter, $4.08 billion, also dropped year over year by $144.4 million. Despite this, Equity Banc shares' share price dropped over 3% on the day, amid a down first half of the day for markets.
ที่ตีพิมพ์ : 2 ปีที่แล้ว โดย Josh Witt ใน Business Finance
Asset quality continued to be a point of emphasis for Equity Bank, as its holding company reported quarterly results that topped Wall Street forecasts.
After Tuesday's market close, Wichita-based Equity Bancshares (NYSE: EQBK) announced third-quarter earnings of $12.3 million, or $0.80 per diluted share.
That beat analyst expectations of $0.73 per share.
Specific to asset quality improvements, Equity Bank said total classified loans closed the quarter at $37.3 million, or 6.3% of total bank regulatory capital — the lowest mark in the bank's history.
Classified loans include loans rated special mention or worse, real estate owned except for previous branch locations and other repossessed assets.
"During the third quarter our team continued to emphasize credit quality while meeting the needs of our customer base," said Brad Elliott, Equity chairman and CEO, in a news release. "Our classified asset ratio is as low as it has ever been, while both capital and on balance sheet reserves remain high positioning Equity to be strategic as we assess both organic and acquisitive growth opportunities."
On a Wednesday call with analysts, Elliott noted other moves the bank made with its loan portfolio during Q3.
"Our credit and commercial teams successfully encouraged several undesirable credits to find new banking partners this quarter — some classified and others just flagged as outside of Equity's current tolerance," he said. "We're proactive combing our portfolio and working with customers to get ahead of any potential downcycle."
"They're smaller institutions — nonpublic — that are taking those credits on," added Elliott, without naming names, when asked later in the call about what banks were picking those borrowers up.
The company has consistently highlighted balance sheet and asset quality after the overall regional banking industry turmoil in the spring following the failures of Silicon Valley Bank and others.
While Q3 earnings and revenue of $49.75 million beat Wall Street expectations and last quarter's results, they were down from Q3 2022's $0.93 earnings per share and $50.9 million in revenue.
Total deposits in the third quarter, $4.08 billion, also dropped year over year by $144.4 million.
As of 12:10 p.m. Wednesday, Equity Bancshares' share price had dropped over 3% on the day, to $23.92, amid a down first half of the day for markets.
Looking ahead, Elliott continued to note Equity has its eyes out for acquisition opportunities.
On the call, president Rick Sems also highlighted areas of the bank that could have an increasing, positive impact on the bottom line.
"Service revenue was up quarter over quarter primarily driven by our credit card, insurance and wealth management business lines," he said. "Each of these lines are in their infancy in terms of income statement impact and along with treasury management has the capacity to be meaningful contributors to service revenue in future periods."
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