Deposit Costs Squeeze Equity Bancshares' Q3 Margin to 4.20%
EQBK sits 20% above its 52-week low of $38.6.
Summary
Equity Bancshares' net interest margin compressed to 4.20% in Q3 from 4.36% in Q2 as deposit pricing pressures outpaced interest income gains. Net interest income fell $1 million quarter over quarter to $72.8 million, even as interest income grew $1.1 million. The cost of funds rose due to competition for rate-sensitive time and municipal deposits. Average earning assets increased $78 million, largely from investment balances funded by borrowings, which further pressured margins. This follows the Q3 earnings report earlier today showing adjusted EPS of $1.40, beating estimates, but the margin squeeze and funding mix deterioration are a negative offset. The company guided Q4 net interest margin back to 4.25%, suggesting management expects some relief from deposit cost pressures.
At the time of this announcement, EQBK was trading at $46.37 on NYSE in the Finance sector, with a market capitalization of approximately $959M. The 52-week trading range was $38.60 to $52.27. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.