Equity Bancshares Raises $75M with Subordinated Notes Offering

Equity Bancshares has completed a $75M subordinated notes offering set to mature in 2035. Proceeds will be used for general corporate purposes, including debt repayment. The notes feature a fixed interest rate until 2030, after which it will switch to a floating rate. This financial move is expected to impact the company's capital structure and market positioning. The most recent analyst rating on EQBK stock is a Hold with a $44.00 price target.

Equity Bancshares, Inc. (EQBK), a regional bank headquartered in Wichita, KS, has completed a $75 million offering of 7.125% fixed-to-floating rate subordinated notes due in 2035. The offering, which was conducted through a private placement with qualified institutional buyers and institutional accredited investors, will be used for general corporate purposes, including debt repayment [1].

The notes, issued under an indenture with UMB Bank, N.A. as trustee, will mature on August 1, 2035. From July 17, 2025, through July 31, 2030, interest will be paid semi-annually at a fixed rate of 7.125% per year. Starting August 1, 2030, and until maturity or earlier redemption, interest will be paid quarterly at a floating rate equal to the then-current Three-Month Term SOFR plus 349 basis points, with a floor of zero for the benchmark rate [1].

This debt offering adds to the company’s existing total debt of $444.22 million, maintaining a moderate debt-to-equity ratio of 0.7. The notes are general unsecured, subordinated obligations of Equity Bancshares and rank junior to all existing and future senior indebtedness [1].

The company may redeem the notes in whole or in part beginning August 1, 2030, or in whole upon certain regulatory or tax events, at 100% of the principal amount plus accrued interest, subject to regulatory approval [1].

In other recent news, Equity Bancshares reported its second-quarter 2025 earnings, which fell short of expectations. The company posted an earnings per share (EPS) of $0.86, missing the forecasted $0.888, while revenue was $58.39 million, below the expected $60.46 million [2].

Despite the earnings miss, Equity Bancshares completed a merger with NBC Bank, which contributed to loan production growth. Keefe, Bruyette & Woods responded to the earnings report by raising Equity Bancshares’ stock price target to $45, noting lower provisions and tax rates as factors that exceeded expectations. DA Davidson also increased its price target to $44, highlighting the bank’s net interest margin strength and potential for future mergers and acquisitions [2].

References:

[1] https://www.reddit.com/r/edgar_news/comments/1m32grv/equity_bancshares_inc/
[2] https://www.investing.com/news/sec-filings/equity-bancshares-completes-75-million-subordinated-notes-offering-93CH-4141961