News Announcement

Contact: Tom Gdowski

308‐382‐3136

For immediate release

tgdowski@equitableonline.com

Date: November 2, 2021

Grand Island, Nebraska

First Quarter 2022 Highlights

  • Equitable Financial Corp, parent company of Equitable Bank, reported profits of $1.6 million for the first quarter of fiscal year ending June 30, 2022, or $0.59 per share, compared to $1.1 million, or $0.37 per share for the first quarter of fiscal year June 2021.
  • Net interest income increased $1.7 million, or 57% during the first quarter of fiscal year June 30, 2022, compared to the first quarter in fiscal year June 30, 2021. For the first quarter of fiscal year June 30, 2022, net interest income was $4.7 million compared to $3.0 million for the first quarter of fiscal year June 30, 2021. Interest income increased $1.3 million, or 34%, to $5.1 million for the first quarter of fiscal year ending June 30, 2022, compared to $3.8 million for the first quarter ending fiscal year June 30, 2021. The main cause for the increase was Payroll Protection Program (PPP) fee income recognized of $1.5 million during the first quarter of fiscal year ending June 30, 2022, compared to $141,000 during the first quarter of fiscal year ending June 30, 2021. Also contributing to the increase in net interest income was a decrease in interest expense related to lower deposit rates.
  • Net loans decreased $9.8 million, or 3% to $339.9 million on September 30, 2021, compared to $349.7 million on June 30, 2021. The decrease in net loans was due to $19.0 million of PPP loans being forgiven. Offsetting this decrease was an increase in organic loan growth. Provision for loan losses for the first quarter of fiscal year ending June 30, 2022, was $114,000 compared to $44,000 for the first quarter of fiscal year ending June 30, 2021.
  • Noninterest income decreased $838,000, or 38%, to $1.4 million for the first quarter of fiscal year ending June 30, 2022, compared to $2.2 million for the first quarter of fiscal year ending June 30, 2021. Gain on sale of loans had the most significant reduction year over year with a decline of $579,000, or 65%. During the previous year there was several opportunities to help customers refinance their mortgage loan resulting in the income being recognized.
  • Noninterest expense increased $13,000 for the first quarter of fiscal year ending June 30, 2022, compared to the first fiscal quarter of fiscal year ending June 2021. The Company recorded increases in advertising and public relations and occupancy and equipment related to the new branch opened in Omaha, Nebraska. Professional fees increased due to additional audits performed during the first quarter of fiscal year ending June 30, 2022, as well as timing of current reviews performed varying from the previous year. Offsetting these increases were decreases in salaries and employee benefits, data processing fees and other expenses.
  • Total assets were $432.0 million as of September 30, 2021, an increase of $9.4 million, or 2% from June 30, 2021; this increase is due to an increase in interest‐bearing deposits which is a result of loan reductions from PPP forgiveness and increased deposits. Deposits increased $8.8 million, or 2% to $374.1 million on September 30, 2021, compared to $365.3 million on June 30, 2021.

During the quarter, the company repurchased 32,372 shares of stock for a total of $420,188, at an average price per share of $12.98.

President and CEO, Tom Gdowski stated "earnings were largely driven by PPP loan forgiveness. Asset quality remains high. The excess liquidity driven by the PPP funds continues to compress margins as investment grade options are limited. The economy continues to improve, and we expect the government to begin tapering the asset purchases begun with the start of the pandemic. This should move short term rates higher sometime in calendar year 2022 and give additional options for excess liquidity.

We completed the opening of our Elkhorn branch in Omaha. This is our second location in the Omaha market, and we have had a positive response from customers in the area. Our mortgage and wealth management area continue to do well as lower rates support real estate purchases and the equity markets remain strong."

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.

Balance Sheet

Unaudited

September 30, 2021

June 30, 2021

Assets

Cash and due from financial institutions

$

3,803,677

$

4,168,982

Interest-earning deposits

44,506,161

25,567,226

48,309,838

29,736,208

Securities available-for-sale

21,599,218

22,111,286

Securities held-to-maturity

20,725

23,915

Federal Home Loan Bank stock, at cost

1,825,600

2,048,000

Federal Reserve Bank stock, at cost

471,500

471,500

Loans, net of allowance for loan losses of $5,308,000 and $5,194,000, respectively

339,922,062

349,742,509

Premises and equipment, net

8,450,081

7,117,514

Foreclosed assets, net

-

4,054

Accrued interest receivable

2,532,911

2,122,977

Deferred taxes, net

786,726

771,528

Customer list intangible

1,576,591

1,619,762

Bank-owned life insurance

3,753,196

3,726,055

Other assets

2,736,381

3,083,406

Total assets

$

431,984,829

$

422,578,714

Liabilities and Stockholders' Equity

Liabilities:

Noninterest-bearing deposits

$

63,970,558

$

57,525,889

Interest-bearing deposits

310,127,552

307,808,272

374,098,110

365,334,161

Lines of credit

1,230,000

880,000

Federal Home Loan Bank Borrowings

11,000,000

11,000,000

Advance payments from borrowers for taxes and insurance

334,511

602,129

Accrued interest payable and other liabilities

2,777,747

3,471,929

Total liabilities

389,440,368

381,288,219

Common stock in ESOP subject to contingent repurchase obligation

1,562,832

1,549,557

Stockholders' equity:

Common stock, $0.01 par value, 25,000,000 shares authorized 2,791,914 and 2,824,286 shares issued and

outstanding at September 30, 2021 and June 30, 2021, respectively

27,919

28,243

Additional paid-in capital

19,165,085

19,564,401

Retained earnings

23,994,381

22,356,239

Unearned ESOP shares

(678,424)

(690,328)

Shares reserved for stock compensation

(105,996)

(142,498)

Accumulated other comprehensive loss, net of tax

141,496

174,438

Reclassification of ESOP shares

(1,562,832)

(1,549,557)

Total stockholders' equity

40,981,629

39,740,938

Total liabilities and stockholders' equity

$

431,984,829

$

422,578,714

Equitable Financial Corp.

Income Statement

Unaudited

For the three months ended

September 30, 2021

September 30, 2020

Interest income:

Loans

$

5,021,007

$

3,734,436

Securities

52,741

60,557

Other

28,103

16,749

Total interest income

5,101,851

3,811,742

Interest expense:

Deposits

403,972

784,850

Federal Home Loan Bank borrowings

21,404

31,479

Other

23,800

28

Total interest expense

449,176

816,357

Net interest income

4,652,675

2,995,385

Provision for loan losses

113,765

43,882

Net interest income after provision for loan losses

4,538,910

2,951,503

Noninterest income:

Service charges on deposit accounts

245,181

198,101

Brokerage fee income

557,888

632,675

Gain on sale of loans

308,276

887,265

Other loan fees

198,078

319,969

Other income

43,431

152,359

Total noninterest income

1,352,854

2,190,369

Noninterest expense:

Salaries and employee benefits

2,048,162

2,116,837

Director and committee fees

43,554

37,392

Data processing fees

256,927

276,084

Occupancy and equipment

337,993

328,480

Regulatory fees and deposit insurance premium

55,834

57,873

Advertising and public relations

170,538

91,501

Professional fees

101,776

82,581

Supplies, telephone and postage

29,457

28,508

Other expenses

694,519

706,994

Total noninterest expense

3,738,760

3,726,250

Income before income taxes

2,153,004

1,415,622

Income tax expense

(514,864)

(338,353)

Net income

$

1,638,140

$

1,077,269

Equitable Financial Corp.

Selected Financial Data - Quarterly Trend Unaudited

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

Quarter Ended Fiscal Year June 30,

2022

2021

2020

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

$

5,102

$

4,071

$

3,823

$

4,199

$

3,811

$

3,883

$

3,949

$

4,029

$

3,879

Interest expense

$

449

$

511

$

639

$

797

$

816

$

1,356

$

1,110

$

1,092

$

1,075

Net interest income

$

4,653

$

3,560

$

3,184

$

3,402

$

2,995

$

2,527

$

2,839

$

2,937

$

2,804

Provision for loan losses

$

114

$

57

$

85

$

79

$

44

$

63

$

276

$

53

$

140

Noninterest income

$

1,353

$

1,590

$

1,448

$

1,929

$

2,190

$

1,887

$

955

$

1,503

$

1,337

Noninterest expense

$

3,739

$

3,821

$

3,336

$

3,790

$

3,726

$

3,529

$

3,059

$

3,256

$

2,967

Income tax expense

$

515

$

133

$

302

$

326

$

338

$

193

$

101

$

262

$

259

Net income

$

1,638

$

1,139

$

909

$

1,136

$

1,077

$

629

$

358

$

869

$

775

Period-end:

Loans (net of deferred origination costs and ALLL)

$

339,922

$

349,743

$

338,825

$

338,058

$

342,212

$

341,676

$

318,909

$

312,829

$

304,891

Assets

$

431,985

$

422,579

$

427,968

$

412,126

$

402,172

$

394,389

$

367,629

$

357,020

$

336,662

Deposits

$

374,098

$

365,334

$

370,586

$

352,740

$

340,461

$

328,291

$

305,539

$

292,761

$

281,669

Shareholders' equity

$

40,982

$

39,741

$

39,524

$

38,823

$

38,118

$

37,260

$

36,410

$

37,193

$

36,445

Profitability Statistics

Return on average assets

1.53%

1.07%

0.87%

1.12%

1.08%

0.66%

0.40%

1.00%

0.93%

Return on average shareholders' equity

16.23%

11.50%

9.28%

11.81%

11.43%

6.83%

3.89%

9.44%

8.44%

Average shareholders' equity to average assets

9.45%

9.32%

9.33%

9.45%

9.46%

9.67%

10.16%

10.62%

11.01%

Common Stock Statistics

Common shares outstanding

2,791,914

2,824,286

2,870,047

2,887,747

2,928,513

2,949,536

2,964,136

3,066,683

3,086,580

Book value per common share

$

14.68

$

14.07

$

13.77

$

13.44

$

13.02

$

12.63

$

12.28

$

12.13

$

11.81

Earnings per common share

$

0.59

$

0.40

$

0.32

$

0.39

$

0.37

$

0.21

$

0.12

$

0.28

$

0.25

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

12.6%

12.5%

11.9%

11.7%

11.2%

11.0%

11.5%

11.8%

11.2%

Common equity Tier 1 capital

11.3%

11.2%

10.6%

10.5%

10.0%

9.7%

10.3%

10.5%

10.0%

Tier 1 capital (to risk-weighted assets)

11.3%

11.2%

10.6%

10.5%

10.0%

9.7%

10.3%

10.5%

10.0%

Tier 1 capital (to adjusted total assets)

9.0%

8.7%

8.7%

8.9%

8.7%

8.4%

9.0%

9.4%

9.3%

Attachments

  • Original document
  • Permalink

Disclaimer

Equitable Financial Corp. published this content on 02 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2021 22:01:04 UTC.