News Announcement

Contact: Tom Gdowski

308-382-3136

For immediate release

tgdowski@equitableonline.com

Grand Island, Nebraska

Date: November 7, 2022

First Quarter Highlights

  • Equitable Financial Corp, parent company of Equitable Bank, reported profits of $1,040,000 for the first quarter of fiscal year ending June 30, 2023, or $0.38 per share, compared to $1,638,000 or $0.59 per share for the first quarter of fiscal year June 2022.
  • Net interest income increased $874,000 to $4.1 million for the quarter ending September 30, 2022, compared to $3.2 million for the prior quarter ending September 30, 2021, when excluding non- recurring PPP revenue of $1.4 million.
  • Net loans increased $74 million, or 21% to $414 million for the quarter ending September 30, 2022, compared to $340 million on September 30, 2022. The increase in net loans was due to organic loan growth within our markets.
  • Provision for loan losses for the first quarter of fiscal year ending September 30, 2022, was $200,000 compared to $114,000 for the September 30, 2022, quarter end.
  • Noninterest income decreased $133,000 to $1,220,000 for the first quarter of fiscal year ending June 30, 2022, compared to $1,353,000 for the first quarter of fiscal year ending June 30, 2022. Noninterest income, as in the prior quarter, was affected primarily by a decrease in mortgage banking activity. With average mortgage rates above 7% we continue to see a slowdown in purchases.
  • Noninterest expense was $3.7 million for the first quarter of fiscal year ending June 30, 2023, compared to $3.6 million for the first quarter of fiscal year ending June 2022. We have been able to gain some operational efficiencies and added significant loan volume without incurring significant expense.
  • Total assets were $478.2 million as of June 30, 2022, first quarter, an increase of $46 million, or 11% from September 30, 2021, first quarter. We have continued to gain new deposit and loan relationships in our primary markets, contributing to this growth. Our investment portfolio has not grown and is very short term.
  • During the quarter, the company repurchased 38,609 shares of stock for a total of $206,051, at an average price per share of $12.86.

President and CEO, Tom Gdowski, stated, "The economy in the markets we serve continues to be strong. We feel good about our borrowers' balance sheet strength and markets in general. Low unemployment rates continue to provide challenges with staffing for many industries as well as general inflationary cost increases. Our overall asset quality remains strong; however, our borrowers' profit margins will be a challenge to maintain at current levels going forward. With the Federal Reserve's aggressive efforts to control inflation, borrowing costs will increase significantly for our Bank as well. We expect this will be mitigated by higher loan and investment rates but the swift and aggressive action by the Fed will present challenges not seen for some time.

We continue to believe investing in our own shares via our stock repurchase program at the current prices is an effective use of capital. Our ability to do so is contingent on the overall performance of the Bank. If interested parties wish to sell their stock, please contact us."

About Equitable Financial Corp.

Equitable Financial Corp. is the holding company for Equitable Bank, which is a Nebraska-based community bank headquartered in Grand Island. Equitable Bank has been in operation since 1882. A full-service bank with five branches in Grand Island, North Platte and Omaha, Equitable offers consumer, commercial and Ag loans, home loans, checking and savings accounts, financial planning, and retirement services.

Forward-Looking Statements

When used in this Press Release, the words, or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including, but not limited to, changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Bank's market area, competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected, and other risks described in the Company's filings with the Securities and Exchange Commission. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Equitable Financial Corp.

Balance Sheet

Unaudited

September 30, 2022

June 30, 2022

Assets

Cash and due from financial institutions

$

6,301,558

$

2,509,013

Interest-earning deposits

3,591,157

8,551,995

9,892,716

11,061,008

Securities available-for-sale

31,356,656

31,984,463

Securities held-to-maturity

11,416

12,963

Federal Home Loan Bank stock, at cost

2,322,900

1,498,600

Federal Reserve Bank stock, at cost

472,750

472,550

Loans, net of allowance for loan losses of $5,982,000 and $5,782,000, respectively

413,951,216

389,756,710

Premises and equipment, net

8,636,593

8,727,274

Foreclosed assets, net

-

-

Accrued interest receivable

2,944,849

2,310,189

Deferred taxes, net

830,135

719,454

Customer list intangible

1,403,905

1,447,077

Bank-owned life insurance

3,861,168

3,834,391

Other assets

2,585,687

3,003,100

Total assets

$

478,269,991

$

454,827,779

Liabilities and Stockholders' Equity

Liabilities:

Noninterest-bearing deposits

$

67,697,179

$

70,265,526

Interest-bearing deposits

335,005,728

325,892,477

402,702,907

396,158,003

Lines of credit

6,749,817

5,352,817

Federal Home Loan Bank Borrowings

22,266,300

6,000,000

Advance payments from borrowers for taxes and insurance

435,477

722,446

Accrued interest payable and other liabilities

1,881,451

2,537,016

Total liabilities

434,035,952

410,770,282

Common stock in ESOP subject to contingent repurchase obligation

1,642,473

1,647,542

Stockholders' equity:

Common stock, $0.01 par value, 25,000,000 shares authorized 2,714,438 and 2,753,047 shares issued and

outstanding at September 30, 2022 and June 30, 2022, respectively

27,144

27,530

Additional paid-in capital

18,177,122

18,666,553

Retained earnings

27,987,095

26,947,373

Unearned ESOP shares

(630,808)

(642,712)

Shares reserved for stock compensation

(33,310)

(38,389)

Accumulated other comprehensive loss, net of tax

(1,293,205)

(902,860)

Reclassification of ESOP shares

(1,642,473)

(1,647,542)

Total stockholders' equity

42,591,565

42,409,955

Total liabilities and stockholders' equity

$

478,269,991

$

454,827,779

Equitable Financial Corp.

Income Statement

Unaudited

For the three months ended

September 30, 2022

September 30, 2021

Interest income:

Loans

$

4,618,367

$

5,021,007

Securities

102,750

52,741

Other

49,907

28,103

Total interest income

4,771,025

5,101,851

Interest expense:

Deposits

554,995

403,972

Federal Home Loan Bank borrowings

79,849

21,404

Other

62,410

23,800

Total interest expense

697,254

449,176

Net interest income

4,073,771

4,652,675

Provision for loan losses

200,605

113,765

Net interest income after provision for loan losses

3,873,166

4,538,910

Noninterest income:

Service charges on deposit accounts

339,416

245,181

Brokerage fee income

469,304

557,888

Gain on sale of loans

54,320

308,276

Other loan fees

237,072

198,078

Other income

120,235

43,431

Total noninterest income

1,220,346

1,352,854

Noninterest expense:

Salaries and employee benefits

2,095,835

2,048,162

Director and committee fees

40,821

43,554

Data processing fees

272,007

256,927

Occupancy and equipment

330,000

337,993

Regulatory fees and deposit insurance premium

45,405

55,834

Advertising and public relations

108,885

170,538

Professional fees

136,524

101,776

Supplies, telephone and postage

26,775

29,457

Other expenses

683,589

694,519

Total noninterest expense

3,739,842

3,738,760

Income before income taxes

1,353,670

2,153,004

Income tax expense

(313,949)

(514,864)

Net income

$

1,039,722

$

1,638,140

Equitable Financial Corp.

Selected Financial Data - Quarterly Trend Unaudited

(Dollars in thousands, except per share amounts and percentages)

Quarter Ended Fiscal Year June 30,

2023

2022

2021

September 30

June 30

March 31

December 31

September 30

June 30

March 31

December 31

September 30

Selected Financial Data

For the period:

Interest income

$

4,771

$

4,101

$

3,772

$

3,748

$

5,102

$

4,071

$

3,823

$

4,199

$

3,811

Interest expense

$

697

$

428

$

389

$

398

$

449

$

511

$

639

$

797

$

816

Net interest income

$

4,074

$

3,673

$

3,383

$

3,350

$

4,653

$

3,560

$

3,184

$

3,402

$

2,995

Provision for loan losses

$

200

$

272

$

89

$

149

$

114

$

57

$

85

$

79

$

44

Noninterest income

$

1,220

$

1,669

$

1,451

$

1,584

$

1,353

$

1,590

$

1,448

$

1,929

$

2,190

Noninterest expense

$

3,740

$

3,460

$

3,522

$

3,818

$

3,739

$

3,821

$

3,336

$

3,790

$

3,726

Income tax expense

$

314

$

357

$

255

$

235

$

515

$

133

$

302

$

326

$

338

Net income

$

1,040

$

1,253

$

968

$

732

$

1,638

$

1,139

$

909

$

1,136

$

1,077

Period-end:

Loans (net of deferred origination costs and ALLL)

$

413,951

$

389,757

$

361,842

$

362,120

$

339,922

$

349,743

$

338,825

$

338,058

$

342,212

Assets

$

478,270

$

454,828

$

456,667

$

434,842

$

431,985

$

422,579

$

427,968

$

412,126

$

402,172

Deposits

$

402,703

$

396,158

$

396,777

$

375,867

$

374,098

$

365,334

$

370,586

$

352,740

$

340,461

Shareholders' equity

$

42,592

$

42,410

$

41,743

$

41,387

$

40,982

$

39,741

$

39,524

$

38,823

$

38,118

Profitability Statistics

Return on average assets

0.87%

1.10%

0.87%

0.68%

1.53%

1.07%

0.87%

1.12%

1.08%

Return on average shareholders' equity

9.77%

11.91%

9.32%

7.11%

16.23%

11.50%

9.28%

11.81%

11.43%

Average shareholders' equity to average assets

8.91%

9.23%

9.32%

9.50%

9.45%

9.32%

9.33%

9.45%

9.46%

Common Stock Statistics

Common shares outstanding

2,714,438

2,753,047

2,769,047

2,771,884

2,791,914

2,824,286

2,870,047

2,887,747

2,928,513

Book value per common share

$

15.69

$

15.40

$

15.07

$

14.93

$

14.68

$

14.07

$

13.77

$

13.44

$

13.02

Earnings per common share

$

0.38

$

0.46

$

0.35

$

0.26

$

0.59

$

0.40

$

0.32

$

0.39

$

0.37

Cash dividends declared per common share

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

Dividend payout ratio

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

0.00%

Regulatory Capital Ratios (Bank)

Total Capital

12.4%

12.3%

12.8%

12.3%

12.6%

12.5%

11.9%

11.7%

11.2%

Common equity Tier 1 capital

11.1%

11.1%

11.5%

11.1%

11.3%

11.2%

10.6%

10.5%

10.0%

Tier 1 capital (to risk-weighted assets)

11.1%

11.1%

11.5%

11.1%

11.3%

11.2%

10.6%

10.5%

10.0%

Tier 1 capital (to adjusted total assets)

9.6%

9.5%

9.2%

9.1%

9.0%

8.7%

8.7%

8.9%

8.7%

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Disclaimer

Equitable Financial Corp. published this content on 07 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2022 23:01:53 UTC.