Equity Bancshares (EQBK) Stock Forecast & Price Target

Equity Bancshares Inc. has demonstrated a positive financial trajectory, illustrated by a reported net interest margin (NIM) increase of 28 basis points quarter-over-quarter to 4.45%, alongside a notable rise in spread income which surged 25.5% to $62.5 million. The company’s core expenses, while increasing by 12.1% quarter-over-quarter to $42.9 million, remain below projections, indicating efficient cost management. Additionally, pro forma expectations suggest a promising profitability outlook, with anticipated return on assets (ROA) of approximately 140 basis points and return on tangible common equity (ROTCE) reaching around 15% by 2026 as the Frontier deal is fully integrated.

Equity Bancshares Inc. faces significant risks due to a potential economic downturn in the Midwest, coupled with concerns over credit quality and the execution of its merger and acquisition (M&A) strategy, which may affect profitability metrics negatively. The declining percentage of brokered deposits from 3.3% to 3.0% in the last quarter indicates potential liquidity challenges, which could impact the bank's financial stability. Additionally, the forecasted decline in net interest margin (NIM) from 4.40-4.50% in 4Q25 to 4.20-4.35% in 2026 further suggests impending pressures on the bank's income generation abilities.