EQBKHIGH SIGNALFINANCIAL10-K

EQBK completed a major acquisition that significantly expanded its scale while experiencing substantially reduced profitability.

The bank executed a transformational acquisition of NBC in Oklahoma, adding $895 million in assets and expanding from 71 to 77 branches, demonstrating aggressive growth strategy execution. However, the substantial decline in net income despite meaningful asset growth raises questions about integration costs, credit quality, or margin compression that investors need to monitor closely.

Comparing 2026-03-06 vs 2025-03-07View on EDGAR →
FINANCIAL ANALYSIS

EQBK's balance sheet expanded meaningfully with total assets growing 19.5% to $6.4 billion and stockholders equity increasing 23.5% to $732 million, reflecting the successful completion of a major acquisition. However, profitability declined substantially with net income dropping significantly year-over-year, while operating cash flow also decreased 30.4% to $51.4 million. The combination of rapid asset growth paired with materially lower earnings suggests either significant one-time integration costs or underlying operational challenges that warrant close investor scrutiny.

FINANCIAL STATEMENT CHANGES
Dividends Paid
Cash Flow
-74.4%
$164K$42K

Dividends cut 74.4% — significant signal of cash flow stress or capital reallocation priorities.

Net Income
P&L
-63.7%
$62.6M$22.7M

Net income declined 63.7% — review whether driven by operations, interest costs, or non-recurring items.

Capital Expenditure
Cash Flow
+56%
$8.5M$13.3M

Capital expenditure jumped 56% — major investment cycle underway; assess returns on deployment.

Cash & Equivalents
Balance Sheet
+48.7%
$35.1M$52.2M

Cash position surged 48.7% — strong cash generation or capital raise providing significant financial cushion.

Total Debt
Balance Sheet
+41.7%
$312.8M$443.2M

Debt increased 41.7% — substantial leverage increase; assess whether deployed for growth or covering losses.

Operating Cash Flow
Cash Flow
-30.4%
$73.8M$51.4M

Operating cash flow fell 30.4% — earnings quality concerns; investigate working capital changes and non-cash items.

Stockholders Equity
Balance Sheet
+23.5%
$592.9M$732.1M

Equity base grew 23.5% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Assets
Balance Sheet
+19.5%
$5.3B$6.4B

Asset base grew 19.5% — expansion through organic growth, acquisitions, or capital deployment.

Total Liabilities
Balance Sheet
+19%
$4.7B$5.6B

Liabilities increased 19% — monitor debt-to-equity ratio and interest coverage.

Share Buybacks
Cash Flow
+17.9%
$11.9M$14.0M

Share repurchases increased 17.9% — management returning capital, signals confidence in intrinsic value.

LANGUAGE CHANGES
NEW — 2026-03-06
PRIOR — 2025-03-07
ADDED
As of December 31, 2025, we had, on a consolidated basis, total assets of $6.37 billion, total deposits of $5.14 billion, total loans (net of allowances) of $4.15 billion and total stockholders equity of $732.1 million.
of Oklahoma ("NBC"), with seven branch locations in Oklahoma City, Altus, Kingfisher and Enid, as well as a loan production office in Alva.
The acquisition increased our deposits by $806.0 million, our loans by $661.5 million and our total assets by $895.2 million.
As a result of these strategic and organic growth efforts, we have expanded our team of full-time equivalent employees from 19 to 909 and our network of branches from 2 to 77 as of December 31, 2025.
State $300M $300M - $1B $1B - $2B Kansas 120 49 10 Missouri 100 64 18 Arkansas 28 28 10 Oklahoma 94 54 15 Nebraska 80 42 13 Iowa 132 70 15 Total 554 307 81 We believe many of these banks will continue to be burdened by new and more complex banking regulations, resource constraints, competitive limitations, rising technological and other business costs, management succession issues and liquidity concerns.
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REMOVED
As of December 31, 2024, we had, on a consolidated basis, total assets of $5.33 billion, total deposits of $4.37 billion, total loans (net of allowances) of $3.46 billion and total stockholders equity of $592.9 million.
As a result of these strategic and organic growth efforts, we have expanded our team of full-time equivalent employees from 19 to 810 and our network of branches from 2 to 71 as of December 31, 2024.
State $300M $300M - $1B $1B - $2B Kansas 132 48 8 Missouri 113 60 18 Arkansas 30 28 9 Oklahoma 97 55 14 Nebraska 83 44 13 Iowa 137 70 16 Total 592 305 78 We believe many of these banks will continue to be burdened by new and more complex banking regulations, resource constraints, competitive limitations, rising technological and other business costs, management succession issues and liquidity concerns.
Deposits Loans Amount (1) Overall % Amount (1) Overall % Metropolitan markets (2) $ 1,596,394 36 % $ 2,366,878 68 % Community markets (3) $ 2,778,395 64 % $ 1,133,938 32 % 100 % 100 % (1) Amounts in thousands.
(2) Represents 14 locations in the Wichita, Kansas City and Tulsa metropolitan statistical areas ( MSAs ).
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