Contact: Tom Gdowski

News Announcement

308-382-3136

For immediate release

tgdowski@equitableonline.com

Date: February 10, 2022

Grand Island, Nebraska

Second Quarter 2022 Highlights

  • Equitable Financial Corp, parent company of Equitable Bank, reported profits of $732,000 for the second quarter of fiscal year ending June 30, 2022, or $0.26 per share, compared to $1.1 million, or $0.39 per share for the second quarter of fiscal year June 2021.
  • Net interest income decreased $52,000, or 15% during the second quarter of fiscal year June 30, 2022, compared to the second quarter in fiscal year June 30, 2021. Interest income decreased $451,000, or 11%, to $3.7 million for the second quarter of fiscal year ending June 30, 2022, compared to $4.2 million for the second quarter ending fiscal year June 30, 2021. The main cause for the decrease was Payroll Protection Program (PPP) fee income recognized of $62,000 during the second quarter of fiscal year ending June 30, 2022, compared to $554,000 during the second quarter of fiscal year ending June 30, 2021.
  • Excluding the decrease in PPP fee income, interest income increased due to loan growth and a decrease in interest expense due to lower interest rates.
  • Net loans increased $12.4 million, or 4% to $362.1 million on December 21, 2021, compared to $349.7 million on June 30, 2021. The increase in net loans was due to organic loan growth.
  • Provision for loan losses for the second quarter of fiscal year ending June 30, 2022, was $149,000 compared to $79,000 for the second quarter of fiscal year ending June 30, 2021.
  • Noninterest income decreased $345,000, or 18%, to $1.6 million for the second quarter of fiscal year ending June 30, 2022, compared to $1.9 million for the second quarter of fiscal year ending June 30, 2021. Gain on sale of loans was down $517,000 for the second quarter of fiscal year June 2022 compared to the second quarter of June 2021. Offsetting the decrease in noninterest income was an increase in brokerage fee income of $161,000 and service charges on deposit accounts of $67,000.
  • Noninterest expense increased $28,000 for the second quarter of fiscal year ending June 30, 2022, compared to the second fiscal quarter of fiscal year ending June 2021. The increase is mainly due to increased salaries and employee benefits.
  • Total assets were $434.8 million as of December 31, 2021, an increase of $12.2 million, or 3% from June 30, 2021; this increase is due to an increase in securities available for sale and net loans. Deposits increased $10.6 million, or 3% to $375.9 million on December 31, 2021, compared to $365.3 million on June 30, 2021.

During the quarter, the company repurchased 20,030 shares of stock for a total of $271,497, at an average price per share of $13.55.

President and CEO, Tom Gdowski stated "operating results were in line with expectations as we recognized the majority of income generated by the PPP loans originated in 2021 and are now focused on normal operations. The low interest rate environment continues to put pressure on our net interest margin and resulting operating profits. With the Fed indicating an increase in rates this spring, we anticipate some relief. Our mortgage originations have returned to more normal levels after seeing several years of very strong activity due to refinancing, which has resulted in less income from loan sales. Asset quality remains strong in our markets and increases in our provision expense are due to portfolio loan growth."

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

December 31, 2021

June 30, 2021

Assets

Cash and due from financial institutions

$

4,550,387

$

4,168,982

Interest-earning deposits

15,684,067

25,567,226

20,234,454

29,736,208

Securities available-for-sale

29,285,815

22,111,286

Securities held-to-maturity

17,380

23,915

Federal Home Loan Bank stock, at cost

1,789,000

2,048,000

Federal Reserve Bank stock, at cost

471,500

471,500

Loans, net of allowance for loan losses of $5,457,000 and $5,194,000, respectively

362,120,332

349,742,509

Premises and equipment, net

9,114,617

7,117,514

Foreclosed assets, net

-

4,054

Accrued interest receivable

2,333,083

2,122,977

Deferred taxes, net

826,240

771,528

Customer list intangible

1,533,419

1,619,762

Bank-owned life insurance

3,780,523

3,726,055

Other assets

3,335,539

3,083,406

Total assets

$

434,841,902

$

422,578,714

Liabilities and Stockholders' Equity

Liabilities:

Noninterest-bearing deposits

$

64,852,755

$

57,525,889

Interest-bearing deposits

311,015,091

307,808,272

375,867,846

365,334,161

Lines of credit

1,504,682

880,000

Federal Home Loan Bank Borrowings

11,000,000

11,000,000

Advance payments from borrowers for taxes and insurance

696,481

602,129

Accrued interest payable and other liabilities

2,823,416

3,471,929

Total liabilities

391,892,425

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 2,771,884 and 2,824,286 shares issued and

outstanding at December 31, 2021 and June 30, 2021, respectively

27,719

28,243

Additional paid-in capital

18,914,339

19,564,401

Retained earnings

24,726,347

22,356,239

Unearned ESOP shares

(666,520)

(690,328)

Shares reserved for stock compensation

(69,495)

(142,498)

Accumulated other comprehensive loss, net of tax

17,087

174,438

Reclassification of ESOP shares

(1,562,832)

(1,549,557)

Total stockholders' equity

41,386,645

39,740,938

Total liabilities and stockholders' equity

$

434,841,902

$

422,578,714

Equitable Financial Corp.

Income Statement

Unaudited

For the six months ended

December 31, 2021

December 31, 2020

Interest income:

Loans

$

8,670,762

$

7,830,742

Securities

102,852

112,936

Other

77,328

66,786

Total interest income

8,850,942

8,010,464

Interest expense:

Deposits

766,058

1,495,084

Federal Home Loan Bank borrowings

42,807

62,709

Other

38,599

55,079

Total interest expense

847,464

1,612,872

Net interest income

8,003,478

6,397,592

Provision for loan losses

262,849

123,450

Net interest income after provision for loan losses

7,740,629

6,274,142

Noninterest income:

Service charges on deposit accounts

518,330

404,710

Brokerage fee income

1,179,840

1,093,895

Gain on sale of loans

599,098

1,694,863

Other loan fees

404,327

616,949

Other income

235,395

308,463

Total noninterest income

2,936,990

4,118,880

Noninterest expense:

Salaries and employee benefits

4,132,855

4,373,480

Director and committee fees

87,600

80,550

Data processing fees

509,128

529,844

Occupancy and equipment

736,250

607,314

Regulatory fees and deposit insurance premium

106,401

105,226

Advertising and public relations

362,147

243,987

Professional fees

146,054

125,206

Supplies, telephone and postage

68,320

54,393

Loan Fees

443,545

603,789

Other expenses

965,173

791,999

Total noninterest expense

7,557,473

7,515,788

Income before income taxes

3,120,146

2,877,234

Income tax expense

(750,038)

(664,236)

Net income

$

2,370,108

$

2,212,998

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

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

$

3,748

$

5,102

$

4,071

$

3,823

$

4,199

$

3,811

$

3,883

$

3,949

$

4,029

$

3,879

Interest expense

$

398

$

449

$

511

$

639

$

797

$

816

$

1,356

$

1,110

$

1,092

$

1,075

Net interest income

$

3,350

$

4,653

$

3,560

$

3,184

$

3,402

$

2,995

$

2,527

$

2,839

$

2,937

$

2,804

Provision for loan losses

$

149

$

114

$

57

$

85

$

79

$

44

$

63

$

276

$

53

$

140

Noninterest income

$

1,584

$

1,353

$

1,590

$

1,448

$

1,929

$

2,190

$

1,887

$

955

$

1,503

$

1,337

Noninterest expense

$

3,818

$

3,739

$

3,821

$

3,336

$

3,790

$

3,726

$

3,529

$

3,059

$

3,256

$

2,967

Income tax expense

$

235

$

515

$

133

$

302

$

326

$

338

$

193

$

101

$

262

$

259

Net income

$

732

$

1,638

$

1,139

$

909

$

1,136

$

1,077

$

629

$

358

$

869

$

775

Period‐end:

$

349,743

$

338,825

$

338,058

$

342,212

$

341,676

$

318,909

$

312,829

$

304,891

Loans (net of deferred origination costs and ALLL)

$

362,120

$

339,922

Assets

$

434,842

$

431,985

$

422,579

$

427,968

$

412,126

$

402,172

$

394,389

$

367,629

$

357,020

$

336,662

Deposits

$

375,867

$

374,098

$

365,334

$

370,586

$

352,740

$

340,461

$

328,291

$

305,539

$

292,761

$

281,669

Shareholders' equity

$

41,387

$

40,982

$

39,741

$

39,524

$

38,823

$

38,118

$

37,260

$

36,410

$

37,193

$

36,445

Profitability Statistics

Return on average assets

0.68%

1.53%

1.07%

0.87%

1.12%

1.08%

0.66%

0.40%

1.00%

0.93%

Return on average shareholders' equity

7.11%

16.23%

11.50%

9.28%

11.81%

11.43%

6.83%

3.89%

9.44%

8.44%

Average shareholders' equity to average assets

9.50%

9.45%

9.32%

9.33%

9.45%

9.46%

9.67%

10.16%

10.62%

11.01%

Common Stock Statistics

Common shares outstanding

2,771,884

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

$

14.93

$

14.68

$

14.07

$

13.77

$

13.44

$

13.02

$

12.63

$

12.28

$

12.13

$

11.81

Earnings per common share

$

0.26

$

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%

0.00%

Regulatory Capital Ratios (Bank)

Total Capital

12.3%

12.6%

12.5%

11.9%

11.7%

11.2%

11.0%

11.5%

11.8%

11.2%

Common equity Tier 1 capital

11.1%

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)

11.1%

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)

9.1%

9.0%

8.7%

8.7%

8.9%

8.7%

8.4%

9.0%

9.4%

9.3%

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Equitable Financial Corp. published this content on 11 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 February 2022 15:17:05 UTC.