Equitable Financial : Announces June 2020 Quarterly Results

News Announcement	Contact: Tom Gdowski
308-382-3136
For immediate release
[e-mail]
	Date: August 14, 2020

Grand Island, Nebraska

• Equitable Financial Corp, parent company of Equitable Bank, reported profits of $629,000 for the fourth quarter of the fiscal year ending June 30, 2020, or $0.21 per share, compared to $246,000, or $0.08 per share for the fourth quarter of fiscal year June 2019.
• Net interest income decreased $370,000, or 13% during the fourth quarter of fiscal year June 2020 compared to the fourth quarter in fiscal year June 2019. The decrease in net interest income this quarter is primarily related to balance sheet management and pre-refunding some short-term liabilities.
• Net loans were $342.6 million at June 30, 2020, representing an increase of $42.5 million, or 14%, compared to $300.1 million at June 30, 2019. During the same time-period deposits grew $45.0 million, or 16% to $328.3 million from $283.3 million.
• During the fourth quarter of the fiscal year ending June 30, 2020 the Bank participated in the SBA PPP loans to assist their borrowers in continuing operations. This program increased loan balances by approximately $28 million.
• Noninterest income increased $937,000, or 86% to $2.0 million for the fourth quarter of fiscal year June 2020 compared to $1.1 million for the fourth quarter of fiscal year June 2019. This increase is attributable to increased volume in brokerage fee income, gain on sale of loans, PPP loan income recognized and other income.
• Noninterest expense increased $195,000, or 6% for the fourth quarter of fiscal year June 2020 compared to the fourth quarter of fiscal year June 2019. The primary increases were in salaries and employee benefits, data processing fees, occupancy and equipment, and other expenses. These increases were primarily a result of general operating expense increases.
• Total assets were $395.4 million as of June 30, 2020, an increase of $65.2 million, or 20% from June 30, 2019.

During the quarter, the company repurchased 14,600 shares of stock for a total of $145,277, at an average price per share of $9.95.

President and CEO, Tom Gdowski, stated "The pandemic related to COVID-19 and the associated issues it has caused has been disruptive to our operations and led us to utilize new methods of serving our customers while protecting our staff. I am proud of the flexibility and adoption of new processes and procedures implemented by our staff! We have had the opportunity to support our current customers and many new ones with the Paycheck Protection Program, Main Street Lending Program and other loan programs being offered to support our nation's economy during this time.

Our operating performance continues to be strong and we have not seen significant stress in our lending portfolios at this time. Our agricultural markets have been under stress for some time due to low

commodity prices and we continue to work closely with borrowers to assist them in their operations. Our other markets continue to perform well and have not shown significant declines due to the pandemic."

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 4 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.

Selected Financial Data - Quarterly Trend Unaudited

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

				2020	Quarter Ended Fiscal Year June 30,	2019
		June 30		March 31	December 31	September 30			June 30		March 31	December 31	September 30
Selected Financial Data
For the period:
Interest income	$	3,748	$	3,949	$	4,029	$	3,879	$	3,734	$	3,393	$	3,266	$	3,164
Interest expense	$	1,356	$	1,110	$	1,092	$	1,075	$	972	$	796	$	673	$	612
Net interest income	$	2,392	$	2,839	$	2,937	$	2,804	$	2,762	$	2,597	$	2,593	$	2,552
Provision for loan losses	$	63	$	276	$	53	$	140	$	176	$	169	$	110	$	84
Noninterest income	$	2,022	$	955	$	1,503	$	1,337	$	1,085	$	753	$	842	$	759
Noninterest expense	$	3,529	$	3,059	$	3,256	$	2,967	$	3,334	$	2,594	$	2,806	$	2,551
Income tax expense	$	193	$	101	$	262	$	259	$	91	$	130	$	140	$	176
Net income	$	629	$	358	$	869	$	775	$	246	$	457	$	379	$	500
Period-end:
Loans (net of deferred origination costs and ALLL)	$	342,643	$	318,909	$	312,829	$	304,891	$	300,087	$	285,376	$	271,775	$	268,424
Assets	$	395,356	$	367,629	$	357,020	$	336,662	$	330,234	$	323,456	$	292,341	$	289,837
Deposits	$	328,291	$	305,539	$	292,761	$	281,669	$	283,339	$	277,047	$	255,304	$	242,232
Shareholders' equity	$	37,260	$	36,410	$	37,193	$	36,445	$	36,979	$	37,115	$	37,037	$	36,958
Profitability Statistics
Return on average assets		0.66%		0.40%		1.00%		0.93%			0.30%		0.59%		0.52%		0.70%
Return on average shareholders' equity		6.83%		3.89%		9.44%		8.44%			2.66%		4.93%		4.10%		5.44%
Average shareholders' equity to average assets		9.66%		10.16%		10.62%		11.01%			11.33%		12.04%		12.71%		12.82%
Common Stock Statistics
Common shares outstanding		2,949,536		2,964,136		3,066,683		3,086,580			3,201,105		3,222,555		3,265,546		3,300,978
Book value per common share	$	12.63	$	12.28	$	12.13	$	11.81	$	11.55	$	11.49	$	11.37	$	11.20
Earnings per common share	$	0.21	$	0.12	$	0.28	$	0.25	$	0.08	$	0.14	$	0.12	$	0.15
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%
Regulatory Capital Ratios (Bank)
Total Capital		11.0%		11.5%		11.8%		11.2%			11.0%		11.6%		12.1%		12.0%
Common equity Tier 1 capital		9.7%		10.3%		10.5%		10.0%			9.8%		10.3%		10.8%		10.8%
Tier 1 capital (to risk-weighted assets)		9.7%		10.3%		10.5%		10.0%			9.8%		10.3%		10.8%		10.8%
Tier 1 capital (to adjusted total assets)		8.4%		9.0%		9.4%		9.3%			9.4%		9.8%		10.1%		10.1%

Equitable Financial Corp.

Balance Sheet

Unaudited

Assets		June 30, 2020			June 30, 2019
Cash and due from financial institutions	$	5,187,505	$	3,149,820
Interest-earning deposits		10,161,397			1,409,852
		15,348,902			4,559,672
Securities available-for-sale		18,257,878			9,364,450
Securities held-to-maturity		53,417			270,475
Federal Home Loan Bank stock, at cost		1,317,500			325,300
Federal Reserve Bank stock, at cost		472,050			469,200
Loans, net of allowance for loan losses of $4,931,000 and $4,445,000, respectively		342,643,476			300,087,266
Premises and equipment, net		6,499,629			6,412,662
Foreclosed assets, net		35,249			223,200
Accrued interest receivable		2,473,808			2,120,629
Deferred taxes, net		440,416			386,051
Customer list intangible		1,792,447			1,965,132
Bank-owned life insurance		3,615,439			1,750,000
Other assets		2,406,199			2,300,067
Total assets	$	395,356,410	$	330,234,104
Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing deposits	$	50,570,497	$	33,199,553
Interest-bearing deposits		277,720,036			250,141,818
		328,290,533			283,341,371
Lines of credit		-			-
Federal Home Loan Bank Borrowings		24,000,000			5,000,000
Advance payments from borrowers for taxes and insurance		596,183			532,175
Accrued interest payable and other liabilities		3,974,127			3,134,690
Total liabilities		356,860,843			292,008,236
Common stock in ESOP subject to contingent repurchase obligation		1,235,981			1,235,981
Stockholders' equity:
Common stock, $0.01 par value, 25,000,000 shares authorized 2,949,536 and 3,201,105 shares issued and
outstanding at June 30, 2020 and June 30, 2019, respectively		29,495			32,011
Additional paid-in capital		21,033,904			23,936,182
Retained earnings		18,095,754			15,465,624
Unearned ESOP shares		(737,944)			(830,966)
Shares reserved for stock compensation		(226,528)			(374,308)
Accumulated other comprehensive loss, net of tax		300,886			(2,675)
Reclassification of ESOP shares		(1,235,981)			(1,235,981)
Total stockholders' equity		37,259,586			36,989,887
Total liabilities and stockholders' equity	$	395,356,410	$	330,234,104

Equitable Financial Corp.

Income Statement

Unaudited

		For the year ended
Interest income:		June 30, 2020			June 30, 2019
	15,216,792
Loans	$	$	13,376,703
Securities		260,015			91,949
Other		127,758			88,240
Total interest income		15,604,565			13,556,892
Interest expense:
Deposits		3,866,202			2,921,801
Federal Home Loan Bank borrowings		756,242			119,170
Other		11,015			12,195
Total interest expense		4,633,459			3,053,166
Net interest income		10,971,106			10,503,726
Provision for loan losses		532,180			539,144
Net interest income after provision for loan losses		10,438,926			9,964,582
Noninterest income:
Service charges on deposit accounts		719,761			756,659
Brokerage fee income		1,673,077			1,342,095
Gain on sale of loans		1,539,126			536,527
Other loan fees		1,257,786			469,775
Other income		627,626			333,949
Total noninterest income		5,817,376			3,439,005
Noninterest expense:
Salaries and employee benefits		7,135,517			6,122,962
Director and committee fees		174,000			167,850
Data processing fees		823,977			1,016,600
Occupancy and equipment		1,150,889			1,059,814
Regulatory fees and deposit insurance premium		140,880			213,954
Advertising and public relations		447,597			321,527
Professional fees		212,564			536,220
Supplies, telephone and postage		137,120			138,699
Other expenses		2,588,212			1,707,175
Total noninterest expense		12,810,756			11,284,801
Income before income taxes		3,445,546			2,118,786
Income tax expense		(815,416)			(537,099)
Net income	$	2,630,130	$	1,581,687