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% |
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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.