Fourth Quarter Results Beat Estimates
For the fourth quarter of 2023, Equity Bancshares recorded a net loss to common shareholders of $28.3 million. This loss amounted to $1.84 per share, which was actually better than the estimated per-share loss of $1.88. The majority of this loss was due to realized losses of $50.6 million from the sale of $493.6 million in securities. However, the proceeds from the sales were strategically reinvested in bond purchases, loan production, cash, and the avoidance of high-cost borrowings.
Growth in Gross Loans and Acquisitions
Equity Bank saw a notable 6.1% annualized expansion in gross loans held for investment, reaching $50.8 million. This growth was largely driven by commercial lending categories.
Additionally, in December, Equity Bancshares announced its all-cash agreement to acquire Rockhold Bancorp, the parent company of the Bank of Kirksville. This acquisition further aligns with Equity Bank’s positioning for future growth.
Equity Chairman and CEO Brad Elliott expressed his optimism, stating, “Our company entered the fourth quarter positioned to take advantage of market opportunities which we expect will drive our operating growth in the future. In addition to the transformative transactions, our teams continued to emphasize core customer creation and service while maintaining strong credit quality.”
Despite the lack of significant catalysts to excite bullish investors in this quarter, especially in a market that demands immediate growth opportunities and operating leverage, patient long-term shareholders may see this pullback as a potential buying opportunity. As Equity Bancshares’ strategic positioning begins to yield positive results in the upcoming quarter, the market outlook could change for the better.