Equitable Financial : Fourth Quarter and Fiscal Year 2022 Highlights

News Announcement	Contact: Tom Gdowski
308-382-3136
For immediate release
[e-mail]
	Date: September 29, 2022
Grand Island, Nebraska
Fourth Quarter and Fiscal Year 2022 Highlights

• Equitable Financial Corp, parent company of Equitable Bank, reported profits of $1,253,000 for the fourth quarter of fiscal year ending June 30, 2022, or $0.46 per share, compared to $1,139,000 or $0.40 per share for the second quarter of fiscal year June 2021.
• For the fiscal year ending June 30, 2022, Equitable Financial Corp. reported profits of $4,591,134 or $1.66 per share, compared to $4,260,485 or $1.48 per share for the fiscal year ending June 30, 2021. The book value per share June 30, 2022, was $15.40 per share vs $14.07 per share June 30, 2021.
• Net interest income increased to $3.7 million for the quarter ending June 30, 2022, compared to $3.6 million for the prior quarter ending June 30, 2021. For the fiscal year ending June 30, 2022, net interest income increased $1.9 million compared to the same period in fiscal year June 30, 2021.
• Net loans increased $40 million, or 11% to $390 million for the fiscal year end 2022 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 fourth quarter of fiscal year ending June 30, 2022, was $272,000 compared to $57,000 for the fourth quarter of fiscal year ending June 30, 2021.
• Noninterest income increased $79,000 to $1,669,000 for the fourth quarter of fiscal year ending June 30, 2022, compared to $1,590,000 for the fourth quarter of fiscal year ending June 30, 2021. Noninterest income was affected primarily by a decrease in mortgage banking activity. The gain on sale of loans decreased by $1,300,000 compared to the prior year period. Brokerage fee income increased by $166,000 compared to the prior year.
• Noninterest expense decreased by $361,000 for the fourth quarter of fiscal year ending June 30, 2022, compared to the fourth quarter of fiscal year ending June 2021. The decrease is mainly due to lower salaries and employee benefits.
• Total assets were $454.8 million as of June 30, 2022, an increase of $32 million, or 7% from June 30, 2021; this increase is due to a rise in securities available for sale and net loans. Deposits increased $31 million, or 8% to $397 million on June 30, 2022, compared to $365.3 million on June 30, 2021.
• During the quarter, the company repurchased 16,000 shares of stock for a total of $206,051, at an average price per share of $12.80. During the fiscal year ending June 30, 2022, the company repurchased 81,045 shares for a total value of $1,062,783 at an average price of $13.06.

President and CEO, Tom Gdowski, stated, "The company experienced a very good year continuing our goal of building value in our communities for our customers and shareholders. Our growth is generated in the markets we serve and built on the high level of value we deliver to our customers. Our growth resulted in

record income for the bank. This has allowed us to continue executing on our stock repurchase program and increasing our shareholder equity to 11.91%.

We believe with its stock price trading at a discount to book value per share, the current use of cash to repurchase shares presents an attractive opportunity that is both accretive to earnings and book value per share. If favorable economic conditions continue for the company, Equitable will continue to pursue the repurchase of stock. 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 5 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

		June 30, 2022			June 30, 2021
Assets
Cash and due from financial institutions	$	2,509,013	$	4,168,982
Interest-earning deposits		8,551,995			25,567,226
		11,061,008			29,736,208
Securities available-for-sale		31,984,463			22,111,286
Securities held-to-maturity		12,963			23,915
Federal Home Loan Bank stock, at cost		1,498,600			2,048,000
Federal Reserve Bank stock, at cost		472,550			471,500
Loans, net of allowance for loan losses of $5,782,000 and $5,194,000, respectively		389,756,710			349,742,509
Premises and equipment, net		8,727,274			7,117,514
Foreclosed assets, net		-			4,054
Accrued interest receivable		2,310,189			2,122,977
Deferred taxes, net		719,454			771,528
Customer list intangible		1,447,077			1,619,762
Bank-owned life insurance		3,834,391			3,726,055
Other assets		3,003,100			3,083,406
Total assets	$	454,827,779	$	422,578,714
Liabilities and Stockholders' Equity
Liabilities:
Noninterest-bearing deposits	$	70,265,526	$	57,525,889
Interest-bearing deposits		325,892,477			307,808,272
		396,158,003			365,334,161
Lines of credit		5,352,817			880,000
Federal Home Loan Bank Borrowings		6,000,000			11,000,000
Advance payments from borrowers for taxes and insurance		722,446			602,129
Accrued interest payable and other liabilities		2,537,016			3,471,929
Total liabilities		410,770,282			381,288,219
Common stock in ESOP subject to contingent repurchase obligation		1,647,542			1,549,557
Stockholders' equity:
Common stock, $0.01 par value, 25,000,000 shares authorized 2,753,047 and 2,824,286 shares issued and
outstanding at June 30, 2022 and June 30, 2021, respectively		27,530			28,243
Additional paid-in capital		18,666,553			19,564,401
Retained earnings		26,947,373			22,356,239
Unearned ESOP shares		(642,712)			(690,328)
Shares reserved for stock compensation		(38,389)			(142,498)
Accumulated other comprehensive loss, net of tax		(902,860)			174,438
Reclassification of ESOP shares		(1,647,542)			(1,549,557)
Total stockholders' equity		42,409,955			39,740,938
Total liabilities and stockholders' equity	$	454,827,779	$	422,578,714

Equitable Financial Corp.

Income Statement

Unaudited

For the year ended

June 30, 2022

June 30, 2021

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

$

16,279,657 $

274,903

167,950

16,722,509

1,495,481

81,465

86,795

1,663,741

15,058,768

623,520

14,435,248

1,086,742

2,322,006

1,190,099

883,013

575,211

6,057,071

7,804,043

154,250

1,039,384

1,571,133

235,997

564,043

239,870

113,654

950,775

1,865,573

14,538,722

5,953,598

(1,362,463)

4,591,134 $

15,541,046

214,352

148,504

15,903,903

2,591,150

113,802

57,944

2,762,895

13,141,007

265,172

12,875,835

849,335

2,155,676

2,515,703

1,008,623

627,233

7,156,570

8,551,962

160,600

978,888

1,287,013

196,220

484,596

218,958

120,245

1,088,615

1,586,216

14,673,313

5,359,093

(1,269,319)

4,089,774

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
		June 30		March 31	December 31	September 30			June 30		March 31	December 31	September 30
Selected Financial Data
For the period:
Interest income	$	4,101	$	3,772	$	3,748	$	5,102	$	4,071	$	3,823	$	4,199	$	3,811
Interest expense	$	428	$	389	$	398	$	449	$	511	$	639	$	797	$	816
Net interest income	$	3,673	$	3,383	$	3,350	$	4,653	$	3,560	$	3,184	$	3,402	$	2,995
Provision for loan losses	$	272	$	89	$	149	$	114	$	57	$	85	$	79	$	44
Noninterest income	$	1,669	$	1,451	$	1,584	$	1,353	$	1,590	$	1,448	$	1,929	$	2,190
Noninterest expense	$	3,460	$	3,522	$	3,818	$	3,739	$	3,821	$	3,336	$	3,790	$	3,726
Income tax expense	$	357	$	255	$	235	$	515	$	133	$	302	$	326	$	338
Net income	$	1,253	$	968	$	732	$	1,638	$	1,139	$	909	$	1,136	$	1,077
Period-end:
Loans (net of deferred origination costs and ALLL)	$	389,757	$	361,842	$	362,120	$	339,922	$	349,743	$	338,825	$	338,058	$	342,212
Assets	$	454,828	$	456,667	$	434,842	$	431,985	$	422,579	$	427,968	$	412,126	$	402,172
Deposits	$	396,158	$	396,777	$	375,867	$	374,098	$	365,334	$	370,586	$	352,740	$	340,461
Shareholders' equity	$	42,410	$	41,743	$	41,387	$	40,982	$	39,741	$	39,524	$	38,823	$	38,118
Profitability Statistics
Return on average assets		1.10%		0.87%		0.68%		1.53%			1.07%		0.87%		1.12%		1.08%
Return on average shareholders' equity		11.91%		9.32%		7.11%		16.23%			11.50%		9.28%		11.81%		11.43%
Average shareholders' equity to average assets		9.23%		9.32%		9.50%		9.45%			9.32%		9.33%		9.45%		9.46%
Common Stock Statistics
Common shares outstanding		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	$	15.40	$	15.07	$	14.93	$	14.68	$	14.07	$	13.77	$	13.44	$	13.02
Earnings per common share	$	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%
Regulatory Capital Ratios (Bank)
Total Capital		12.3%		12.8%		12.3%		12.6%			12.5%		11.9%		11.7%		11.2%
Common equity Tier 1 capital		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%		11.5%		11.1%		11.3%			11.2%		10.6%		10.5%		10.0%
Tier 1 capital (to adjusted total assets)		9.5%		9.2%		9.1%		9.0%			8.7%		8.7%		8.9%		8.7%