Equity Bancshares, Inc. (EQBK): Business Model Canvas [11-2024 Updated]

In the competitive landscape of banking, understanding the business model is crucial for both investors and customers. Equity Bancshares, Inc. (EQBK) has crafted a comprehensive Business Model Canvas that highlights its strategic partnerships, diverse customer segments, and robust revenue streams. With a strong capital base and a commitment to personalized services, EQBK stands out in its efforts to meet the financial needs of local communities. Dive deeper to explore the key components that drive Equity Bancshares' success and what sets it apart in the financial sector.

Equity Bancshares, Inc. (EQBK) - Business Model: Key Partnerships

Collaborations with local businesses

Equity Bancshares, Inc. engages in partnerships with local businesses to enhance its service offerings and customer reach. As of September 30, 2024, the bank's total assets were approximately $5.36 billion, with total deposits amounting to $4.36 billion . These collaborations often include joint marketing initiatives and community engagement programs that aim to foster local economic growth.

Partnerships with federal and state regulatory bodies

Equity Bancshares maintains strong relationships with federal and state regulatory bodies to ensure compliance with banking regulations. The effective income tax rate for the three months ended September 30, 2024, was 16.7%, compared to 13.5% for the same period in the previous year. This relationship is critical for navigating the regulatory landscape and mitigating risks associated with compliance failures.

Alliances with technology providers for banking solutions

The company has formed alliances with various technology providers to enhance its banking solutions. For instance, in the nine months ended September 30, 2024, net interest income increased by $17.1 million, reflecting the positive impact of technology-driven efficiencies . These partnerships enable Equity Bancshares to offer innovative products, such as mobile banking and automated customer service solutions, which are essential for maintaining competitiveness in the evolving financial landscape.

Partnership Type	Details	Impact on Financials
Local Businesses	Collaborations for marketing and community programs	Enhanced customer base and deposit growth of $217.5 million in nine months
Regulatory Bodies	Compliance with federal and state regulations	Effective tax rate of 16.7%, ensuring regulatory alignment
Technology Providers	Partnerships for banking solutions and efficiencies	Net interest income increased by $17.1 million

Equity Bancshares, Inc. (EQBK) - Business Model: Key Activities

Offering a range of financial products

Equity Bancshares, Inc. provides a diverse array of financial products tailored to meet the needs of its customers. As of September 30, 2024, the company reported total assets of $5.36 billion, with total loans held for investment amounting to $3.56 billion. The composition of the loan portfolio includes:

Type of Loan	Amount (in thousands)	Percentage of Total Portfolio
Commercial and Industrial	$670,665	18.6%
Commercial Real Estate	$1,916,863	53.2%
Residential Real Estate	$567,063	15.8%
Other Loans	$403,446	11.4%

In the nine months ending September 30, 2024, net interest income was reported at $142.02 million, reflecting the effectiveness of the product offerings in generating revenue.

Managing customer relationships and service quality

Equity Bancshares emphasizes strong customer relationship management to ensure high service quality. As of September 30, 2024, total deposits reached $4.36 billion, a $217.5 million increase from December 31, 2023. The breakdown of total deposits is as follows:

Type of Deposit	Amount (in thousands)	Percentage of Total Deposits
Interest-Bearing Demand	$997,228	22.9%
Savings and Money Market	$1,471,728	33.7%
Time Deposits	$926,130	21.2%
Non-Interest Bearing Demand	$967,858	22.2%

The company’s focus on customer service quality is reflected in its non-interest income of $29.71 million for the three months ended September 30, 2024, which includes significant contributions from service charges and fees, debit card income, and mortgage banking.

Conducting risk assessments and compliance checks

Equity Bancshares employs rigorous risk management practices to assess and mitigate potential risks. As of September 30, 2024, the company reported a provision for credit losses of $2.45 million, attributed to loan growth and the establishment of reserves on non-purchase credit deteriorated loans acquired in recent acquisitions. Additionally, the effective income tax rate for the nine months ending September 30, 2024, stood at 21.2%, highlighting the company's compliance with regulatory requirements.

The company’s financial condition is further supported by its capital ratios. As of September 30, 2024, total capital to risk-weighted assets was reported at 14.78%, exceeding the minimum required for capital adequacy under Basel III.

Equity Bancshares, Inc. (EQBK) - Business Model: Key Resources

Strong capital base with total stockholders' equity of $504 million

As of September 30, 2024, Equity Bancshares, Inc. reported total stockholders' equity of $504 million. This represents an increase of $51.2 million from $452.9 million at December 31, 2023. The increase is primarily attributed to net income generated during the first nine months of 2024 and a reduction in unrealized losses on available-for-sale securities, net of tax.

Network of branches across Kansas, Oklahoma, and Arkansas

Equity Bancshares operates a network of 71 full-service banking sites located across Arkansas, Kansas, Missouri, and Oklahoma as of September 30, 2024. The bank's total assets reached $5.36 billion, with total loans held for investment amounting to $3.56 billion.

Advanced banking technology and systems

The bank has invested in advanced banking technology and systems to enhance customer service and operational efficiency. As of September 30, 2024, the bank's net interest income was reported at $136.7 million for the nine months ended September 30, 2024, reflecting a strategic focus on leveraging technology for improved financial performance.

Financial Metrics	September 30, 2024	December 31, 2023
Total Stockholders' Equity	$504 million	$452.9 million
Total Assets	$5.36 billion	$5.04 billion
Total Loans Held for Investment	$3.56 billion	$3.29 billion
Net Interest Income (YTD)	$136.7 million	$119.6 million
Number of Branches	71	71

Equity Bancshares, Inc. (EQBK) - Business Model: Value Propositions

Personalized banking services tailored to local communities

Equity Bancshares, Inc. emphasizes personalized banking services that cater specifically to the needs of local communities across Arkansas, Kansas, Missouri, and Oklahoma. The bank operates 71 full-service banking locations, allowing for direct engagement with customers and tailored financial solutions.

As of September 30, 2024, total assets amounted to $5.36 billion, with total loans held for investment net of allowance reaching $3.56 billion. This localized approach enhances customer relationships and fosters community engagement, which is reflected in the bank's growth and service delivery.

Competitive interest rates on loans and deposits

Equity Bancshares offers competitive interest rates to attract and retain customers. For the three months ended September 30, 2024, the yield on loans was 7.11% while the cost of interest-bearing deposits was 2.85%. This results in a net interest margin of 3.87%, which underscores the bank’s efficiency in managing interest income relative to its expenses.

Total deposits at September 30, 2024, were $4.36 billion, an increase of 5.2% compared to $4.15 billion at the end of 2023. This growth in deposits can be attributed to the bank's attractive rates and personalized service offerings.

Robust digital banking platform for convenience

Equity Bancshares has invested in a robust digital banking platform that enhances customer convenience and accessibility. The digital platform enables customers to manage their accounts, initiate transactions, and access services remotely. This aligns with the growing trend of online banking, especially post-pandemic.

As of September 30, 2024, the bank reported a net income allocable to common stockholders of $19.9 million, or $1.28 diluted earnings per share, marking a significant increase from $12.3 million or $0.80 per share in the same quarter of the previous year. This growth reflects the effectiveness of their digital strategies in driving customer engagement and financial performance.

Metrics	September 30, 2024	December 31, 2023	Change (%)
Total Assets	$5.36 billion	$5.03 billion	6.5%
Total Loans	$3.56 billion	$3.29 billion	8.2%
Total Deposits	$4.36 billion	$4.15 billion	5.2%
Net Interest Margin	3.87%	3.51%	10.3%
Net Income (3 months)	$19.9 million	$12.3 million	61.0%

This comprehensive focus on personalized services, competitive rates, and a strong digital presence positions Equity Bancshares as a significant player in the regional banking sector, effectively addressing customer needs while differentiating itself from competitors.

Equity Bancshares, Inc. (EQBK) - Business Model: Customer Relationships

Dedicated customer service teams

Equity Bancshares, Inc. has established dedicated customer service teams to enhance customer experiences and address client needs effectively. As of September 30, 2024, the company reported a total non-interest expense of $30.3 million, which includes salaries and employee benefits amounting to $18.5 million. This investment in human capital reflects the bank's commitment to providing personalized assistance and building long-term relationships with clients.

Community engagement and local sponsorships

Community engagement is a critical component of Equity Bancshares' strategy. The bank actively participates in local sponsorships and initiatives, which foster goodwill and strengthen ties with the communities it serves. In 2024, the bank's total assets increased to $5.36 billion, indicating growth that can be partially attributed to its community-focused approach. The bank also emphasizes local involvement in various philanthropic activities, which enhances customer loyalty and brand affinity.

Loyalty programs for long-term clients

Equity Bancshares has implemented loyalty programs aimed at rewarding long-term clients. These programs are designed to encourage customer retention and increase overall satisfaction. As of September 30, 2024, total deposits reached $4.36 billion, reflecting a 5.2% increase from $4.15 billion at the end of 2023. This growth suggests that loyalty initiatives may be successfully driving customer engagement and deposit retention.

Initiative	Details	Financial Impact (2024)
Customer Service Teams	Dedicated teams to enhance customer experiences	$30.3 million total non-interest expense
Community Engagement	Local sponsorships and philanthropic initiatives	Total assets: $5.36 billion
Loyalty Programs	Programs aimed at rewarding long-term clients	Total deposits: $4.36 billion (5.2% increase)

Equity Bancshares, Inc. (EQBK) - Business Model: Channels

Branch locations for face-to-face banking

Equity Bancshares operates a network of 71 full-service banking branches across Arkansas, Kansas, Missouri, and Oklahoma as of September 30, 2024. These branches serve as critical touchpoints for customer engagement, facilitating personal interactions for various banking services, including loan applications and financial consultations.

Online banking platform for digital access

The online banking platform of Equity Bancshares provides customers with 24/7 access to their accounts, enabling them to perform transactions, pay bills, and manage their finances from anywhere. As of September 30, 2024, total assets reached $5.36 billion, with significant growth in digital banking adoption contributing to this increase.

Mobile app for on-the-go banking needs

Equity Bancshares has developed a mobile application that enhances customer experience by offering features such as mobile check deposit, balance inquiries, and fund transfers. The app has played a vital role in increasing customer engagement, with mobile banking transactions comprising a notable portion of total banking activities. As of September 30, 2024, the bank reported average loans of $3.46 billion for the nine months ended.

Channel	Details	Impact on Business
Branch Locations	71 full-service banking sites	Facilitates personal interactions and service delivery
Online Banking Platform	24/7 account access	Increases operational efficiency and customer satisfaction
Mobile App	Features like mobile check deposit	Enhances customer engagement and convenience

Equity Bancshares, Inc. (EQBK) - Business Model: Customer Segments

Small to medium-sized businesses

Equity Bancshares, Inc. focuses significantly on serving small to medium-sized enterprises (SMEs) across its operational regions. As of September 30, 2024, the company reported total commercial and industrial loans amounting to $670.7 million, which represents approximately 18.6% of its total loan portfolio. This reflects a growth of 12.1% from the previous year, indicating a robust demand for business financing solutions among SMEs.

Loan Type	Amount (in $ millions)	Percentage of Total Loans	Growth from Previous Year
Commercial and Industrial	670.7	18.6%	12.1%
Commercial Real Estate	1,916.9	53.2%	8.9%
Residential Real Estate	567.1	15.8%	1.9%

Individual consumers seeking personal finance solutions

Equity Bancshares also targets individual consumers looking for personal finance solutions, such as mortgages and personal loans. The bank's residential real estate loans, totaling $567.1 million as of September 30, 2024, account for 15.8% of its total loan portfolio. This segment has shown a modest increase of 1.9% from the previous year, indicating steady consumer interest in home financing.

Farmers and agricultural businesses

Additionally, Equity Bancshares serves the agricultural sector, providing tailored financial products to farmers and agricultural businesses. The company reported $244 million in loans to agricultural businesses, which signifies its commitment to supporting this vital industry. This segment is crucial, given the bank's operational presence in regions with significant agricultural activity.

Customer Segment	Loan Amount (in $ millions)	Market Focus
Agricultural Loans	244	Farmers and Agricultural Businesses

Overall, Equity Bancshares, Inc. effectively segments its customer base into small to medium-sized businesses, individual consumers, and agricultural enterprises, allowing it to cater to diverse financial needs while maintaining a strong loan portfolio. The total assets of the company as of September 30, 2024, stand at $5.36 billion, with total deposits reported at $4.36 billion.

Equity Bancshares, Inc. (EQBK) - Business Model: Cost Structure

Salaries and employee benefits as a major expense

The total salaries and employee benefits for Equity Bancshares, Inc. for the nine months ended September 30, 2024, amounted to $54.4 million, compared to $47.8 million for the same period in 2023, marking an increase of 13.9%.

Operational costs for branch maintenance

Net occupancy and equipment costs for the nine months ended September 30, 2024, were $10.8 million, up from $9.1 million in 2023, reflecting an increase of 18.9%. These costs include repairs, maintenance, depreciation, and utilities expenses related to the branches.

Technology and data processing expenses

Data processing expenses for the nine months ended September 30, 2024, totaled $15.0 million, an increase from $12.9 million in the previous year, which represents a rise of 15.8%. This increase is primarily attributed to the renewal of software licenses and enhancements in technology infrastructure.

Expense Category	2024 Amount ($ Million)	2023 Amount ($ Million)	Change (%)
Salaries and Employee Benefits	54.4	47.8	13.9%
Net Occupancy and Equipment	10.8	9.1	18.9%
Data Processing	15.0	12.9	15.8%

Equity Bancshares, Inc. (EQBK) - Business Model: Revenue Streams

Interest Income from Loans

Equity Bancshares, Inc. generates significant revenue through interest income from loans, totaling $142 million annually. This income stems primarily from a diverse portfolio of loans, including commercial, industrial, and real estate loans.

Non-Interest Income from Service Charges and Fees

In addition to interest income, the company earns $29 million annually from non-interest income sources, which include service charges and fees. These fees are derived from various banking services provided to customers, enhancing the overall revenue stream.

Gains from Securities Transactions and Investment Activities

Equity Bancshares also realizes gains from securities transactions and investment activities. For the nine months ended September 30, 2024, the net gain from securities transactions was reported at $222,000 . This reflects the bank's strategy to engage in investment activities that complement its core banking operations.

Revenue Stream	Annual Amount	Notes
Interest Income from Loans	$142 million	Generated from a diverse loan portfolio
Non-Interest Income from Service Charges and Fees	$29 million	Includes various banking service fees
Gains from Securities Transactions	$222,000	Realized gains from investment activities

Updated on 16 Nov 2024

Resources:

1. Equity Bancshares, Inc. (EQBK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Equity Bancshares, Inc. (EQBK)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Equity Bancshares, Inc. (EQBK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.