Keefe, Bruyette & Woods has revised its target price for Equity Bancshares, setting it at $49.00, an upward adjustment from the previous level of $47.00, while reaffirming its Market Perform rating on the shares. This update follows the release of the bank's recent financial results, which presented operating earnings of $1.20 per share, exceeding the expectations laid out by analysts, even though the pre-provision net revenue (PPNR) came in slightly below anticipated figures.
The bank's valuation currently reflects a price-to-earnings (P/E) ratio of 48.8, a metric that InvestingPro classifies as a relatively high earnings multiple. The underlying performance showed positive momentum with revenue growth fueled by enhanced margins and a broad spectrum of fee income sources. These gains were somewhat tempered by increased expenses linked to certain nonrecurring items. Moreover, the earnings outperformance was further bolstered by a reduction in the bank's provision expenses as well as a lower effective tax rate.
Equity Bancshares has a record of consistently enhancing shareholder return through dividends, having raised its payout for five consecutive years. The current dividend yield stands at 1.47%, reflecting a strong dividend growth rate of 20% over the past twelve months, signaling management's commitment to shareholder value.
Loan origination activity demonstrated considerable strength; however, this was balanced by elevated loan payoffs, culminating in a 7% linked-quarter annualized decrease in the bank’s loan portfolio. In parallel, deposit balances have expanded by 3% on an annualized basis, as solid core deposit growth more than offset reductions in brokered certificates of deposit (CDs).
Following these developments, Keefe, Bruyette & Woods has opted to maintain its earnings projections for fiscal years 2026 and 2027, after revising its financial model based on updated guidance provided by Equity Bancshares' management team.
In related news, the company announced its financial results for the fourth quarter of 2025, surpassing analyst EPS estimates by a notable margin. The reported earnings per share stood at $1.15 against the anticipated $0.88, yielding a 30.68% positive surprise. Revenue, meanwhile, slightly missed expectations, registering $73.03 million compared to the projected $75.03 million.
On the governance front, Randee R. Koger, a long-serving director who has contributed to Equity Bancshares since 2003, disclosed her decision to retire from the board following the 2026 Annual Meeting of Stockholders. She will continue her responsibilities until that date, with her departure highlighting forthcoming changes in the company's board composition as it navigates ongoing operational and strategic evaluation by market analysts.