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.