News Announcement

Contact: Tom Gdowski

308-382-3136

For immediate release

tgdowski@equitableonline.com

Grand Island, Nebraska

Date: May 10, 2023

First Quarter Highlights

  • Equitable Financial Corp, parent company of Equitable Bank, reported profits of $906,000 for the third quarter of fiscal year ending June 30, 2023, or $.34 per share, compared to $968,000 or $0.35 per share for the third quarter of fiscal year June 2022.
  • Net interest income increased $179,000 to $3.562 million for the quarter ending March 31, 2023, compared to $3.383 million for the quarter ending March 31, 2022.
  • Net loans increased $47 million to $409 million for the quarter ending March 31, 2023, compared to $362 million on March 31, 2022.
  • Provision for loan losses for the third quarter of fiscal year ending June 30, 2023, was ($117,000) compared to $89,000 for the March 31, 2022, quarter end.
  • Noninterest income decreased $322,000 to $1,129,000 for the third quarter of fiscal year ending June 30, 2023, compared to $1,451,000 for the third quarter of fiscal year ending June 30, 2022. As in the prior quarter, noninterest income was affected primarily by a decrease in mortgage banking activity and loan originations and sales.
  • Noninterest expense was $3.538 million for the third quarter of fiscal year ending June 30, 2023, compared to $3.522 million for the third quarter of fiscal year ending June 2022.
  • Total assets were $472 million as of March 31, 2023, compared to $456 million for the quarter of March 31, 2022.
  • During the quarter, the company repurchased 27,350 shares of stock at an average price per share of $12.77.

President and CEO, Tom Gdowski, stated, "The operating environment in the prior quarter continues to provide challenges primarily driven by the Federal Reserve increasing rates at a pace not seen in decades. The widely publicized regional bank failures have not had a material effect on our deposit base as we have been able to provide our customers with assurance their funds are secure. In this environment of rising rates, inverted yield curves and uncertain economic conditions, we will continue to focus on asset quality, duration, and operational efficiencies.

We continue to believe investing in our own shares via our stock repurchase program at the current prices is an effective use of capital and the impact of negative market sentiment. 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

March 31, 2023

June 30, 2022

Assets

Cash and due from financial institutions

$

6,741,132

$

2,509,013

Interest-earning deposits

2,510,960

8,551,995

9,252,093

11,061,008

Securities available-for-sale

31,486,693

31,984,463

Securities held-to-maturity

8,924

12,963

Federal Home Loan Bank stock, at cost

1,547,000

1,498,600

Federal Reserve Bank stock, at cost

473,200

472,550

Loans, net of allowance for loan losses of $6,027,000 and $5,782,000, respectively

408,850,435

389,756,710

Premises and equipment, net

8,402,990

8,727,274

Foreclosed assets, net

-

-

Accrued interest receivable

2,674,753

2,310,189

Deferred taxes, net

738,751

719,454

Customer list intangible

1,317,563

1,447,077

Bank-owned life insurance

3,915,040

3,834,391

Other assets

3,210,424

3,003,100

Total assets

$

472,126,867

$

454,827,779

Liabilities and Stockholders' Equity

Liabilities:

Noninterest-bearing deposits

$

58,526,374

$

70,265,526

Interest-bearing deposits

355,882,501

325,892,477

414,408,875

396,158,003

Lines of credit

525,000

5,352,817

Federal Home Loan Bank Borrowings

8,000,000

6,000,000

Advance payments from borrowers for taxes and insurance

858,008

722,446

Accrued interest payable and other liabilities

2,337,231

2,537,016

Total liabilities

426,129,114

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 2,678,582 and 2,753,047 shares issued and

outstanding at March 31, 2023 and June 30, 2022, respectively

26,786

27,530

Additional paid-in capital

17,630,552

18,666,553

Retained earnings

29,867,946

26,947,373

Unearned ESOP shares

(607,000)

(642,712)

Shares reserved for stock compensation

(23,153)

(38,389)

Accumulated other comprehensive loss, net of tax

(897,379)

(902,860)

Reclassification of ESOP shares

(1,642,473)

(1,647,542)

Total stockholders' equity

44,355,280

42,409,955

Total liabilities and stockholders' equity

$

472,126,867

$

454,827,779

Equitable Financial Corp.

Income Statement

Unaudited

Interest income:

Loans

$

Securities

Other

Total interest income

Interest expense:

Deposits

Federal Home Loan Bank borrowings

Other

Total interest expense

Net interest income

Provision for loan losses

Net interest income after provision for loan losses

Noninterest income:

Service charges on deposit accounts

Brokerage fee income

Gain on sale of loans

Other loan fees

Other income

Total noninterest income

Noninterest expense:

Salaries and employee benefits

Director and committee fees

Data processing fees

Occupancy and equipment

Regulatory fees and deposit insurance premium

Advertising and public relations

Professional fees

Supplies, telephone and postage

Loan Fees

Other expenses

Total noninterest expense

Income before income taxes

Income tax expense

Net income

$

For the nine months ended

3/31/20233/31/2022

15,109,366 $ 12,339,688

305,579170,314

183,767111,910

15,598,71212,621,913

3,518,747

1,111,879

286,832

63,746

121,620

60,736

3,927,199

1,236,360

11,671,513

11,385,553

258,154

351,791

11,413,359

11,033,762

966,598

802,867

1,587,949

1,779,353

95,649

819,549

498,147

584,943

383,985

401,164

3,532,329

4,387,875

6,174,319

6,116,383

112,800

108,704

813,821

767,301

1,040,005

1,090,936

178,880

187,956

345,326

463,732

306,207

172,808

81,710

91,202

485,876

673,547

1,512,912

1,405,964

11,051,857

11,078,533

3,893,831

4,343,104

(973,258)

(1,005,176)

2,920,573

$

3,337,928

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

March 31

December 31

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

$

5,422

$

5,406

$

4,771

$

4,101

$

3,772

$

3,748

$

5,102

$

4,071

$

3,823

$

4,199

$

3,811

Interest expense

$

1,860

$

1,370

$

697

$

428

$

389

$

398

$

449

$

511

$

639

$

797

$

816

Net interest income

$

3,562

$

4,036

$

4,074

$

3,673

$

3,383

$

3,350

$

4,653

$

3,560

$

3,184

$

3,402

$

2,995

Provision for loan losses

$

(117)

$

175

$

200

$

272

$

89

$

149

$

114

$

57

$

85

$

79

$

44

Noninterest income

$

1,129

$

1,183

$

1,220

$

1,669

$

1,451

$

1,584

$

1,353

$

1,590

$

1,448

$

1,929

$

2,190

Noninterest expense

$

3,538

$

3,774

$

3,740

$

3,460

$

3,522

$

3,818

$

3,739

$

3,821

$

3,336

$

3,790

$

3,726

Income tax expense

$

364

$

295

$

314

$

357

$

255

$

235

$

515

$

133

$

302

$

326

$

338

Net income

$

906

$

975

$

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)

$

408,850

$

431,296

$

413,951

$

389,757

$

361,842

$

362,120

$

339,922

$

349,743

$

338,825

$

338,058

$

342,212

Assets

$

472,127

$

494,270

$

478,270

$

454,828

$

456,667

$

434,842

$

431,985

$

422,579

$

427,968

$

412,126

$

402,172

Deposits

$

414,409

$

418,618

$

402,703

$

396,158

$

396,777

$

375,867

$

374,098

$

365,334

$

370,586

$

352,740

$

340,461

Shareholders' equity

$

44,355

$

43,488

$

42,592

$

42,410

$

41,743

$

41,387

$

40,982

$

39,741

$

39,524

$

38,823

$

38,118

Profitability Statistics

Return on average assets

0.75%

0.80%

0.87%

1.10%

0.87%

0.68%

1.53%

1.07%

0.87%

1.12%

1.08%

Return on average shareholders' equity

8.25%

9.06%

9.77%

11.91%

9.32%

7.11%

16.23%

11.50%

9.28%

11.81%

11.43%

Average shareholders' equity to average assets

9.09%

8.85%

8.91%

9.23%

9.32%

9.50%

9.45%

9.32%

9.33%

9.45%

9.46%

Common Stock Statistics

Common shares outstanding

2,678,582

2,698,838

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

$

16.56

$

16.11

$

15.69

$

15.40

$

15.07

$

14.93

$

14.68

$

14.07

$

13.77

$

13.44

$

13.02

Earnings per common share

$

0.34

$

0.36

$

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%

0.00%

0.00%

Regulatory Capital Ratios (Bank)

Total Capital

12.7%

11.7%

12.4%

12.3%

12.8%

12.3%

12.6%

12.5%

11.9%

11.7%

11.2%

Common equity Tier 1 capital

11.4%

10.4%

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)

11.4%

10.4%

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)

9.2%

8.8%

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 11 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2023 14:13:01 UTC.