Equity Bancshares (EQBK) Stock Forecast & Price Target

Equity Bancshares Inc. demonstrated strong financial performance with a reported net interest margin (NIM) of 4.45%, surpassing expectations and indicating improved profitability. The company's spread income saw a significant increase of 25.5% quarter-over-quarter, reaching $62.5 million, driven by deal accretion and non-accrual benefits, which contributed positively to earnings per share. Pro forma estimates forecast enhancements in profitability metrics, with anticipated return on assets (ROA) of approximately 140 basis points and return on tangible common equity (ROTCE) of around 15% as the Frontier deal fully integrates by 2026, reinforcing a positive outlook for future growth.

Equity Bancshares Inc. faces several challenges that contribute to a negative outlook on its stock, including a decline in brokered deposits as a percentage of total deposits from 3.3% to 3.0%, indicating diminishing confidence in the institution's funding sources. The potential for significant economic deterioration in the Midwest, coupled with a decline in credit quality and integration risks associated with its M&A strategy, raises concerns about profitability and future financial standing. Furthermore, expectations of a decline in net interest margin (NIM), particularly with guidance showing a downturn from 4.40-4.50% in 4Q25 to 4.20-4.35% in 2026, adds to the apprehension surrounding the company's financial stability.