Equity Bancshares (EQBK) Stock Forecast & Price Target

Equity Bancshares Inc. demonstrated a noteworthy increase in net interest margin (NIM), rising by 28 basis points to 4.45%, which positively contributed to the company's earnings, reflecting stronger spread income that surged 25.5% quarter-over-quarter to $62.5 million. Despite a rise in non-performing assets (NPAs) and classified assets, the bank's core expenses were managed effectively, coming in below projections, which supports future profitability expectations. Pro forma projections suggest a promising upward trajectory for Equity Bancshares, anticipating a return on assets (ROA) of approximately 140 basis points and a return on tangible common equity (ROTCE) of around 15% by 2026, driven by strong business production and growing market demand.

Equity Bancshares Inc. faces a negative outlook primarily due to a decline in brokered deposits, which fell from 3.3% to 3.0%, indicating potential liquidity concerns. The company's profitability is also threatened by significant risks associated with economic deterioration in the Midwest, credit quality decline, and integration risks related to its M&A strategy, all of which could adversely affect financial performance. Additionally, the forecasted downturn in net interest margin (NIM) from 4.40-4.50% in 4Q25 to 4.20-4.35% in 2026 further underscores the challenges ahead for the company.