UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

------------

FORM 10-QSB

(Mark One)

|X| QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934

For the quarterly period ended March 31, 2006

|_| TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______________ to _____________

Commission file number: 0-51514

EQUITABLE FINANCIAL CORP.
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)

United States 14-1941649
--------------------------------- -------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)

113-115 North Locust Street, Grand Island, Nebraska 68801
---------------------------------------------------------
(Address of principal executive offices)

(308) 382-3136
---------------------------
(Issuer's telephone number)

Not Applicable
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(Former name, former address and former fiscal year,
if changed since last report)

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

Yes |X| No |_|

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).

Yes |_| No |X|

As of May 1, 2006, there were 3,297,509 shares of the registrant's common stock
outstanding.

Transitional Small Business Disclosure Format (Check one):

Yes |_| No |X|

EQUITABLE FINANCIAL CORP.

FORM 10-QSB

Index

Page No.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements ......................................................... 1

Consolidated Statements of Financial Condition at nine months ended
March 31, 2006 (Unaudited) and year ended June 30, 2005 ...................... 1

Consolidated Statements of Income/(Loss) for the three and nine months
ended March 31, 2006 and 2005 (Unaudited) .................................... 2

Consolidated Statements of Stockholders' Equity for the nine months
ended March 31, 2006 and 2005 (Unaudited)..................................... 3

Consolidated Statements of Cash Flows for the nine months ended
March 31, 2006 and 2005 (Unaudited)........................................... 4

Notes to Consolidated Unaudited Financial Statements.......................... 5

Item 2. Management's Discussion and Analysis or Plan of Operation..................... 7

Item 3. Controls and Procedures....................................................... 21

PART II. OTHER INFORMATION

Item 1. Legal Proceedings............................................................. 22

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds................... 22

Item 3. Defaults upon Senior Securities............................................... 22

Item 4. Submission of Matters to a Vote of Security Holders........................... 22

Item 5. Other Information............................................................. 22

Item 6. Exhibits...................................................................... 23

Signatures

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EQUITABLE FINANCIAL CORP.
Consolidated Statements of Financial Condition
(Unaudited)

March 31, June 30,
2006 2005
-------------- --------------

ASSETS
Cash and due from financial institutions ............................. $ 4,274,121 $ 2,159,699
Securities available-for-sale, at fair value ......................... 10,660,098 12,785,396
Securities held-to-maturity, fair value at March 31, 2006 -
$957,618; and June 30, 2005 - $1,248,005 ........................... 970,964 1,238,085
Federal Home Loan Bank stock, at cost ................................ 2,281,500 1,989,600
Loans, net of allowance for loan losses of $931,459 at
March 31, 2006; and $785,973 at June 30, 2005 ...................... 149,365,492 121,655,609
Premises and equipment, net .......................................... 4,971,062 3,902,094
Accrued interest receivable .......................................... 1,041,418 686,198
Other assets ......................................................... 1,425,786 954,825
-------------- --------------
Total assets .................................................. $ 174,990,441 $ 145,371,506
============== ==============

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Non-interest-bearing deposits ..................................... $ 5,184,139 $ 3,684,623
Interest-bearing deposits ......................................... 111,268,248 93,103,496
-------------- --------------
Total deposits ................................................ 116,452,387 96,788,119

Federal Home Loan Bank borrowings .................................... 31,428,810 32,952,250
Advance payments from borrowers for taxes and insurance .............. 1,394,170 840,951
Accrued interest payable and other liabilities ....................... 157,618 427,568
-------------- --------------
Total liabilities ............................................. $ 149,432,985 $ 131,008,888

Commitments and contingencies ........................................ -- --

Stockholders' equity
Common stock, $0.01 par value, 14,000,000 shares authorized;
Issued 3,297,509 shares on November 8, 2005 ..................... $ 32,975 $ --
Additional paid in capital ........................................ 13,619,370 --
Retained earnings ................................................. 13,281,372 13,889,317
Unearned ESOP share ............................................... (1,257,789) --
Accumulated other comprehensive income/(loss), net ................ (118,472) 473,301
-------------- --------------
Total stockholders' equity .................................... $ 25,557,456 $ 14,362,618
-------------- --------------
Total liabilities and stockholders' equity ................. $ 174,990,441 $ 145,371,506
============== ==============

See notes to the Unaudited Consolidated Financial Statements.

EQUITABLE FINANCIAL CORP.
Consolidated Statements of Income/(Loss) and Comprehensive Income/(Loss)
(Unaudited)

Three Months Ended March 31, Nine Months Ended March 31,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------

Interest Income
Loans ............................................... $ 2,134,775 $ 1,755,757 $ 6,044,519 $ 5,257,136
Securities .......................................... 140,434 156,118 454,563 507,624
Other ............................................... 40,294 7,460 61,517 11,316
------------ ------------ ------------ ------------
Total interest income ........................... 2,315,503 1,919,335 6,560,599 5,776,076

Interest Expense
Deposits ............................................ 888,192 582,083 2,408,080 1,640,633
Federal Home Loan Bank borrowings ................... 397,999 364,451 1,265,662 1,156,482
------------ ------------ ------------ ------------
Total interest expense .......................... 1,286,191 946,534 3,673,742 2,797,115
------------ ------------ ------------ ------------

Net interest income .................................... 1,029,312 972,801 2,886,857 2,978,961

Provision for loan losses .............................. 30,000 30,000 90,000 90,000
------------ ------------ ------------ ------------

Net interest income after provision for loan losses .... 999,312 942,801 2,796,857 2,888,961
Non-interest income
Service charges on deposit accounts ................. 59,501 47,164 170,943 148,015
Gain on sale of investments ......................... 354,189 -- 694,583 --
Brokerage fee income ................................ 242,505 35,677 609,119 182,677
Other loan fees ..................................... 33,523 26,035 142,979 85,131
Gain on sale of foreclosed assets ................... -- 19,437 -- 32,723
Other income ........................................ 15,583 -- 75,079 48,946
------------ ------------ ------------ ------------
Total non-interest income ....................... 705,301 128,313 1,692,703 497,492

Non-interest expenses
Salaries and employee benefits ...................... 843,947 538,362 2,440,994 1,819,587
Director and committee fees ......................... 24,450 24,450 73,350 73,350
Occupancy and equipment ............................. 281,353 233,918 874,647 674,334
Regulatory fees and deposit insurance premium ....... 15,710 14,544 44,731 43,773
Loss on sale of loans ............................... 1,739 -- 144,731 --
Loss on investment in low income housing partnerships 12,019 13,193 39,309 43,194
Advertising and public relations .................... 94,633 28,093 251,844 156,728
Contributions and donations ......................... 19,130 23,160 823,335 74,436
Insurance and surety bond premiums .................. 20,298 22,748 63,133 61,124
Professional fees ................................... 112,081 11,728 221,532 41,330
Supplies, telephone, postage ........................ 57,848 38,188 173,643 97,478
ATM expenses ........................................ 8,676 7,300 25,923 22,566
Dues and subscriptions .............................. 8,247 6,019 37,505 23,333
Other expenses ...................................... 39,264 33,043 133,082 88,532
------------ ------------ ------------ ------------
Total non-interest expenses ..................... 1,539,395 994,746 5,347,759 3,219,765
------------ ------------ ------------ ------------

Income/(loss) before income taxes ...................... 165,218 76,368 (858,199) 166,688
Income tax (benefit)/expense ........................... 48,963 4,621 (350,254) 14,626
------------ ------------ ------------ ------------
Net income/(loss) ...................................... $ 116,255 $ 71,747 $ (507,945) $ 152,062
------------ ------------ ------------ ------------
Basic and diluted earnings/(loss) per share ............ .04 N/A (.13) N/A
------------ ------------ ------------ ------------
Comprehensive income/(loss) ............................ $ (142,299) $ (91,337) $ (1,099,718) $ 100,051
============ ============ ============ ============

Note: Earnings/(Loss) per share is calculated based on the period of time from
the completion date of the initial public offering, November 8, 2005, through
March 31, 2006.

N/A - Not applicable, see Note 4

See Notes to the Unaudited Consolidated Financial Statements.

EQUITABLE FINANCIAL CORP.
Consolidated Statements of Stockholders' Equity
(Unaudited)

Accumulated
Additional Unearned Other-
Common Paid Retained ESOP Comprehensive
Stock in Capital Earnings Shares Income/(Loss) Total
------------ ------------ ------------ ------------ ------------ ------------

Balance at June 30, 2004 .............. $ -- $ -- $ 13,605,970 $ -- $ 466,628 $ 14,072,598
Comprehensive income:
Net income .......................... -- -- 152,062 -- -- 152,062
Net decrease in fair value of
securities classified as
available-for-sale, net of
income taxes ...................... -- -- -- -- (52,011) (52,011)
------------
Total comprehensive income ..... 100,051
------------
Balance at March 31, 2005 ............. $ -- $ -- 13,758,032 $ -- $ 414,617 $ 14,172,649
============ ============ ============ ============ ============ ============

Balance at June 30, 2005 .............. $ -- $ -- $ 13,889,317 $ -- $ 473,301 $ 14,362,618
Distribution to Capitalize Equitable
Financial MHC ....................... -- -- (100,000) -- -- (100,000)
Issuance of common stock, net of
offering costs ...................... 32,348 12,994,635 -- -- -- 13,026,983
Purchase of 129,262 shares for ESOP ... -- -- -- (1,292,620) (1,292,620)
Donation of 62,653 shares to Equitable
Bank Charitable Foundation .......... 627 625,903 -- -- -- 626,530
Allocation of ESOP common stock ....... -- (1,168) -- 34,831 -- 33,663
Comprehensive loss:
Net loss ............................ -- -- (507,945) -- -- (507,945)
Net decrease in fair value of
securities classified as
available-for-sale, net of
income taxes ...................... -- -- -- -- (591,773) (591,773)
------------
Total comprehensive loss ....... (1,099,718)
------------
Balance at March 31, 2006 ............. $ 32,975 $ 13,619,370 $ 13,281,372 $ (1,257,789) $ (118,472) $ 25,557,456
============ ============ ============ ============ ============ ============

See Notes to the Unaudited Consolidated Financial Statements.

EQUITABLE FINANCIAL CORP.
Consolidated Statements of Cash Flows
(Unaudited)

Nine Months Ended
March 31,
--------------------------------
2006 2005
-------------- --------------

Cash flows from operating activities:
Net income/(loss) .......................................... $ (507,945) $ 152,062
Adjustments to reconcile net income/(loss) to net cash
from operating activities:
Depreciation ............................................ 172,568 155,221
Federal Home Loan Bank stock dividends .................. 77,854 (59,900)
Charitable Foundation Donation .......................... 626,530 --
ESOP Expense ............................................ 34,831 --
Amortization of:
Deferred loan origination costs, net ............ (60,384) 39,526
Premiums and discounts .......................... 23,717 40,292
Gain on sale of foreclosed assets ....................... -- (32,723)
Loss on sale of loans ................................... 144,731 --
Gain on sale of investments ............................. (694,583) --
Provision for loan losses ............................... 90,000 90,000
Change in:
Accrued interest receivable ...................... (355,220) (52,219)
Prepaid expenses and other assets ................ (470,961) (236,801)
Accrued interest payable and other liabilities ... (136,755) 25,188
-------------- --------------
Net cash from operating activities ........ (1,055,617) 120,646

Cash flows from investing activities:
Net change in loans ........................................ (34,162,736) (3,241,650)
Proceeds from sale of foreclosed assets, net ............... -- 68,842
Proceeds from sale of loans ................................ 6,328,580 --
Proceeds from sale of investments .......................... 705,650 --
Purchase of available-for-sale securities .................. -- (992,947)
Securities available-for-sale
Proceeds from calls ................................... 555,000 --
Proceeds from principal repayments .................... 644,802 4,211,795
Securities held-to-maturity
Proceeds from principal repayments .................... 261,209 445,103
Purchases of Federal Home Loan Bank stock .................. (214,046) --
Purchase of premises and equipment ......................... (1,275,662) (438,178)
-------------- --------------
Net cash from investing activities ........ (27,157,203) 52,965

Cash flows from financing activities:
Net change in deposits ..................................... 19,664,268 2,623,893
Proceeds from Federal Home Loan Bank borrowings ............ 53,200,000 29,431,438
Repayments of Federal Home Loan Bank borrowings ............ (54,723,440) (33,116,922)
Net change in advance payments from borrowers for taxes
and insurance ............................................ 553,219 518,402
Net proceeds from initial stock offering ................... 13,025,815 --
Purchase of ESOP shares .................................... (1,292,620) --
Distribution to Capitalize Equitable Financial MHC ......... (100,000) --
-------------- --------------
Net cash from financing activities ........ 30,327,242 (543,189)
-------------- --------------
Increase / (decrease) in cash and cash equivalents ............ 2,114,422 (369,578)
Cash and cash equivalents, Beginning of period ................ 2,159,699 2,157,887
-------------- --------------
Cash and cash equivalents, End of period ...................... $ 4,274,121 $ 1,788,309
============== ==============

SUPPLEMENTARY DISCLOSURES
Donation of premises and equipment ............................ $ 34,126 $ --
============== ==============

See notes to the Unaudited Consolidated Financial Statements.

EQUITABLE FINANCIAL CORP.
Notes to the Unaudited Consolidated Financial Statements
March 31, 2006

(1) Basis of Presentation

The unaudited consolidated financial statements as of and for the periods
ended March 31, 2006 include the accounts of Equitable Financial Corp.
("Equitable Financial" or the "Company) and its wholly owned subsidiary,
Equitable Bank (the "Bank"). The Company was incorporated on November 8, 2005
for the purpose of serving as the holding company of the Bank as part of the
Bank's mutual holding company reorganization and minority stock issuance. As
described in note 3 below, the reorganization was completed on November 8, 2005.
All significant intercompany accounts and transactions have been eliminated. The
Company, through the Bank, operates in a single business segment, providing
traditional banking services through its office network. The financial
statements for the periods prior to November 8, 2005 include only the accounts
of the Bank, as the Company was not in existence during such period.

The accompanying unaudited financial statements have been prepared in
accordance with instructions for Form 10-QSB and, therefore, do not include all
disclosures necessary for a complete presentation of the financial statements in
conformity with U.S. generally accepted accounting principles. However, all
adjustments that are, in the opinion of management, necessary for the fair
presentation of the interim financial statements have been included. Such
adjustments were of a normal recurring nature. The results of operations for the
three- and nine-month periods ended March 31, 2006 are not necessarily
indicative of the results that may be expected for the entire year or any other
interim period. For additional information, refer to the financial statements
and footnotes thereto of the Bank included in the Company's prospectus dated
September 27, 2005.

In preparing financial statements in conformity with U.S. generally
accepted accounting principles, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities at the date of the financial
statements and income and expenses during the reporting period. Actual results
could differ significantly from those estimates. Material estimates that are
particularly susceptible to significant change in the near term relate to
determination of the allowance for loan losses and the fair values of financial
instruments.

Certain prior period amounts have been reclassified to correspond with the
current period presentations.

(2) Earnings Per Share

Basic earnings per share are computed by dividing income available to
common stockholders by the weighted average number of common stock outstanding
for the period. Diluted earnings per share reflects the potential dilution that
could occur if securities or other contracts to issue common stock were
exercised or converted into common stock or resulted in the issuance of common
stock that then shared in the earnings of the entity. Earnings per share is
calculated beginning with November 8, 2005, the date of reorganization. Net loss
for the period from the reorganization (November 8, 2005) through March 31, 2006
was $402,071. The weighted average shares outstanding for the period from
reorganization through March 31, 2006 was 3,169,989. The weighted average shares
outstanding for the three months ended March 31, 2006 were 3,171,035.

(3) Mutual Holding Company Reorganization and Stock Issuance

Equitable Financial was organized as a federal corporation at the
direction of the Bank in connection with the mutual holding company
reorganization of the Bank. The reorganization was completed on November 8,
2005. In the reorganization, Equitable Financial sold 43.1% of its outstanding
shares of common stock (1,421,226 shares) to the public, contributed 1.9% of its
outstanding shares of common stock (62,653 shares) plus $100,000 in cash to the
Equitable Bank Charitable Foundation and issued 55% of its outstanding shares of
common stock (1,813,630 shares) to Equitable Financial MHC, the mutual holding
company of the Bank. In addition, a contribution of $100,000 was made to
capitalize Equitable Financial MHC. In connection with the reorganization, the
Bank changed its name to Equitable Bank from Equitable Savings Bank of Grand
Island. Costs incurred in connection with the common stock offering
(approximately $1.2 million) were recorded as a reduction of the proceeds from
the offering. Net proceeds from the common stock offering amounted to
approximately $13.0 million.

(4) Employee Stock Ownership Plan

On November 8, 2005, the Company adopted an employee stock ownership plan
("the ESOP") for the benefit of substantially all employees. The ESOP borrowed
$1,292,620 from the Company and used those funds to acquire 129,262 shares of
the Company's stock in connection with the reorganization at a price of $10.00
per share.

Shares purchased by the ESOP with the loan proceeds are held in a suspense
account and are allocated to ESOP participants on a pro rata basis as principal
and interest payments are made by the ESOP to the Company. The loan is secured
by shares purchased with the loan proceeds and will be repaid by the ESOP with
funds from the Company's discretionary contributions to the ESOP and earnings on
ESOP assets. Annual principal and interest payments of approximately $145,477
are to be made by the ESOP.

As shares are released from collateral, the Company will report
compensation expense equal to the current market price of the shares and the
shares will become outstanding for earnings-per-share computations. Dividends on
allocated ESOP shares reduce retained earnings; dividends on unearned ESOP
shares reduce accrued interest. Because participants may require the Company to
purchase their ESOP shares upon termination of their employment, the appraised
fair value of all earned and allocated ESOP shares may become a liability.

(5) Recent Accounting Pronouncements

In December 2005, the FASB issued Statement 123R, Share Based Payment.
This statement would be effective for all employee awards granted, modified, or
settled after June 30, 2006. As of the effective date, compensation expense
related to the nonvested portion of awards outstanding would be based on the
grant-date fair value as calculated under the original provisions of Statement
123. Adoption of this standard could materially impact the amount of salaries
and employee benefits expense incurred for future financial statements reporting
if the Company has a stock award program in place after the proposed statement
becomes effective.

Item 2. Management's Discussion and Analysis or Plan of Operation

Management's discussion and analysis of the financial condition and
results of operations at and for the three and nine months ended March 31, 2006
and 2005 is intended to assist in understanding the financial condition and
results of operations of the Bank. The information contained in this section
should be read in conjunction with the Unaudited Financial Statements and the
notes and tables thereto, appearing in Part I, Item 1 of this document.

Forward-Looking Statements

This quarterly report contains forward-looking statements that are based
on assumptions and may describe future plans, strategies and expectations of
Equitable Financial MHC, Equitable Financial and Equitable Bank. These
forward-looking statements are generally identified by use of the words
"believe," "expect," "intend," "anticipate," "estimate," "project" or similar
expressions.

Equitable Financial and Equitable Bank's ability to predict results or the
actual effect of future plans or strategies is inherently uncertain. Factors
which could have a material adverse effect on the operations of Equitable
Financial and its subsidiary include, but are not limited to, changes in
interest rates, national and regional economic conditions, legislative and
regulatory changes, monetary and fiscal policies of the U.S. government,
including policies of the U.S. Treasury and the Federal Reserve Board, the
quality and composition of the loan or investment portfolios, demand for loan
products, deposit flows, competition, demand for financial services in Equitable
Financial and Equitable Bank's market area, changes in real estate market values
in Equitable Financial and Equitable Bank's market area, changes in relevant
accounting principles and guidelines and inability of third-party service
providers to perform.

These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such
statements. Except as required by applicable law or regulation, Equitable
Financial does not undertake, and specifically disclaims any obligation, to
release publicly the result of any revisions that may be made to any
forward-looking statements to reflect events or circumstances after the date of
the statements or to reflect the occurrence of anticipated or unanticipated
events.

General

Equitable Financial was organized as a federal corporation at the
direction of the Bank in connection with its mutual holding company
reorganization. The reorganization was completed on November 8, 2005. In the
reorganization, Equitable Financial sold 43.1% of its outstanding shares of
common stock (1,421,226 shares) to the public, contributed 1.9% of its
outstanding shares of common stock (62,653 shares) plus $100,000 in cash to the
Equitable Bank Charitable Foundation and issued 55% of its outstanding shares of
common stock (1,813,630 shares) to Equitable Financial MHC, the mutual holding
company of the Bank. In addition, a contribution of $100,000 was made to
capitalize Equitable Financial MHC. In connection with the reorganization, the
Bank changed its name to Equitable Bank from Equitable Savings Bank of Grand
Island. Costs incurred in connection with the common stock offering
(approximately $1.2 million) were recorded as a reduction of the proceeds from
the offering. Net proceeds from the common stock offering amounted to
approximately $13.0 million.

Equitable Financial was organized November 8, 2005. The information as of
and for the three and nine months ended March 31, 2006 includes Equitable
Financial's information beginning November 8, 2005. The information in this
report at June 30, 2005 and the periods prior to November 8, 2005 and including
the financial statements and related financial data, relates to the Bank only.

The Company is headquartered in Grand Island, Nebraska and is a
community-oriented financial institution dedicated to serving the financial
services needs of consumers and businesses within our market areas, including
North Platte and Omaha. The Bank is engaged primarily in the business of
attracting deposits from the general public and using such funds to originate
one-to four-family residential real estate loans. To a lesser extent, we
originate multi-family and nonresidential real estate loans, construction loans,
commercial loans and consumer loans.

The Federal Deposit Insurance Corporation, through the Deposit Insurance
Fund, insures the Bank's savings accounts up to the applicable legal limits. The
Bank is a member of the Federal Home Loan Bank System.

Statement of Financial Condition Analysis

Overview. Total assets at March 31, 2006 were $175.0 million, an increase
of $29.6 million or 20.4% from total assets of $145.4 million at June 30, 2005
primarily due to an increase in the loan portfolio of $27.7 million. This
increase is primarily a result of the deployment of the stock offering proceeds
through our new offices in North Platte, Grand Island and Omaha. Total
liabilities at March 31, 2006 were $149.4 million, compared to $131.0 million at
June 30, 2005, an increase of $18.4 million or 14.0%. Stockholders' equity
increased to $25.6 million at March 31, 2006 from $14.4 million at June 30,
2005, an increase of $11.2 million or 78%. The increase in stockholders' equity
reflects the issuance of 3,297,509 shares of common stock.

Loans. Our primary lending activity is the origination of loans secured by
real estate. We originate one-to four-family residential loans, multi-family and
non-residential real estate loans and constructions loans. To a lesser extent,
we originate commercial and consumer loans. Recently, we have increased our
emphasis on originating non-residential real estate, construction and commercial
business loans.

The following table sets forth the composition of our loan portfolio at
the dates indicated.

March 31, 2006 June 30, 2005
-------------------------------- --------------------------------
Amount Percent Amount Percent
-------------- -------------- -------------- --------------
(Dollars in thousands)

Real estate--mortgage:
One- to four-family........................ $ 80,837 54.0% $ 78,341 64.1%
Multi-family............................... 7,993 5.3 8,391 6.9
Non-residential............................ 28,262 18.8 16,753 13.7
-------------- -------------- -------------- --------------
Total real estate mortgage loans........ 117,092 78.1 103,485 84.7
Construction.................................. 3,359 2.2 1,855 1.5
Commercial.................................... 15,859 10.6 3,970 3.2
Consumer:
Home equity................................ 11,226 7.5 11,045 9.0
Other consumer............................. 2,420 1.6 1,903 1.6
-------------- -------------- -------------- --------------
Total consumer loans.................... 13,646 9.1 12,948 10.6
-------------- -------------- -------------- --------------

Total loans............................. 149,956 100.0% 122,258 100.0%
============== ==============
Deferred loan origination costs, net.......... 340 184
Allowance for loan losses..................... (931) (786)
-------------- --------------

Loans, net.............................. $ 149,365 $ 121,656
============== ==============

Loans, net, increased $27.7 million, or 22.8%, to $149.4 million at March
31, 2006 compared to $121.7 million at June 30, 2005. The increase was primarily
the result of non-residential real estate and commercial business loan
originations from our new North Platte and Omaha operations.

Nonperforming Assets. The following table provides information with
respect to our nonperforming assets at the dates indicated. We did not have any
troubled debt restructurings or any accruing loans past due 90 days or more at
the dates presented.

March 31, June 30,
2006 2005
------------ ------------
(Dollars in thousands)
Nonaccrual loans............................ $ 47 $ 190
Foreclosed assets, net...................... -- 4
------------ ------------

Total nonperforming assets............ $ 47 $ 194
============ ============

Total nonaccrual loans to total loans....... 0.0% 0.2%
Total nonaccrual loans to total assets...... 0.0% 0.1%
Total nonperforming assets to total assets.. 0.0% 0.1%

Nonperforming assets decreased $147,000 to $47,000 at March 31, 2006,
compared to $194,000 at June 30, 2005. The decrease is a result of several
customers bringing their loans to current status.

Securities. Our securities portfolio consists primarily of U.S.
Government-sponsored entity securities and mortgage-backed securities.

The following table sets forth the amortized cost and fair value of our
securities portfolio at the dates indicated.

March 31, 2006 June 30, 2005
----------------------- -----------------------
Amortized Fair Amortized Fair
Cost Value Cost Value
---------- ---------- ---------- ----------
(Dollars in thousands)

Securities available-for-sale:
State and political subdivisions .......... $ 993 $ 974 $ 992 $ 999
U.S. Government-sponsored entity securities 7,652 7,531 8,213 8,185
Mortgage-backed securities ................ 1,865 1,831 2,282 2,298
Collateralized mortgage obligations ....... 330 324 566 562
Equity securities ......................... -- -- 15 741
---------- ---------- ---------- ----------
Total securities available-for-sale ... $ 10,840 $ 10,660 $ 12,068 $ 12,785
========== ========== ========== ==========

Securities held-to-maturity:
Mortgage-backed securities ................ $ 971 $ 958 $ 1,238 $ 1,248
---------- ---------- ----------
Total securities held-to-maturity ..... $ 971 $ 958 $ 1,238 $ 1,248
---------- ---------- ---------- ----------
Total securities ................ $ 11,811 $ 11,618 $ 13,306 $ 14,033
========== ========== ========== ==========

The amortized cost of the securities available-for-sale decreased $1.2
million, or 10.2%, between June 30, 2005 and March 31, 2006. The amortized cost
of the securities held-to-maturity decreased $267,000, or 21.6%, between June
30, 2005 and March 31, 2006. This reflects the maturity of agency securities and
the prepayment of principal in mortgage-backed securities. The Company evaluates
its securities with significant declines in fair value on a quarterly basis to
determine whether they should be considered temporarily or other than
temporarily impaired. The unrealized losses on investments is attributable to
changes in interest rates, rather than credit quality, and the Company has the
ability and management the intent to hold these securities until a market price
recovery or maturity.

During the three months ended March 31, 2006, the Company sold its
remaining 5,500 shares of Freddie Mac common stock and recognized a pre-tax gain
of $354,000. The proceeds from the sale were used to fund commercial loans. In
the quarter ended December 31, 2005, the Company also sold 5,800 shares of
Freddie Mac common stock at a pre-tax gain of $340,000.

Deposits. Our primary source of funds is our deposit accounts, which are
comprised of non-interest-bearing accounts, interest-bearing NOW accounts, money
market accounts, savings accounts and certificates of deposit.

The following table sets forth the balances of our deposit products at the
dates indicated.

March 31, 2006 June 30, 2005
--------------------------- ---------------------------
Amount % Amount %
------------ ------------ ------------ ------------
(Dollars in thousands)

Non-interest-bearing..................................... $ 5,184 4.5% $ 3,685 3.8%
Interest-bearing NOW..................................... 11,773 10.1 8,902 9.2
Money market............................................. 6,434 5.5 4,531 4.7
Savings.................................................. 4,895 4.2 4,445 4.6
Certificates of deposit.................................. 88,166 75.7 75,225 77.7
------------ ------------ ------------ ------------
Total............................................. $ 116,452 100.0% $ 96,788 100.0%
============ ============ ============ ============

Total deposits increased to $116.5 million from $96.8 million during the
nine months ended March 31, 2006, an increase of $19.7 million or 20.3%. Core
deposits (including all account types except certificates of deposit) increased
$6.7 million or 31.2%. Certificates of deposit increased $13.0 million or 17.3%.
The certificate increase reflects the increase in brokered certificates from $0
to $14 million. This increase in deposits was partially offset by moderate
outflow of local certificates. The increase in deposits was used to fund
increased loan demand.

Borrowings. We utilize borrowings from the Federal Home Loan Bank of
Topeka to supplement our supply of funds for loans and investments. The
following table sets forth information concerning our borrowings for the periods
indicated.

Nine Twelve
Months Months
Ended Ended
March 31, June 30,
2006 2005
---------- ----------
(Dollars in thousands)

Maximum amount outstanding at any month-end during the period:
FHLB Advances ................................................ $ 38,804 $ 31,726
FHLB Line of Credit .......................................... 8,900 6,100
Average amounts outstanding during the period:
FHLB Advances ................................................ $ 29,251 $ 29,305
FHLB Line of Credit .......................................... 4,972 2,123
Weighted average interest rate during the period:
FHLB Advances ................................................ 4.99% 5.04%
FHLB Line of Credit .......................................... 4.25 1.58
Balance outstanding at end of period:
FHLB Advances ................................................ $ 31,429 $ 26,852
FHLB Line of Credit .......................................... -- 6,100
Weighted average interest rate at end of period:
FHLB Advances ................................................ 4.98% 5.38%
FHLB Line of Credit .......................................... 5.03 3.59

Results of Operations for the Three Months Ended March 31, 2006 and 2005

Overview. We recorded net income of $116,000 during the three months ended
March 31, 2006, compared to net income of $72,000 during the three months ended
March 31, 2005, due primarily to the sale of the remaining shares of Freddie Mac
common stock for a pre-tax gain of $354,000. We also incurred additional
expenses related to the opening of our new facilities in Grand Island, North
Platte and Omaha.

Net Interest Income. The following table summarizes changes in interest
income and expense for the three months ended March 31, 2006 and 2005.

Three Months
Ended March 31,
------------------------------
2006 2005 % Change
------------- ------------- -------------
(Dollars in Thousands)

Interest Income:
Loans.............................. $ 2,135 $ 1,756 21.6%
Securities......................... 140 156 (10.3)
Other.............................. 40 7 471.4
------------- -------------
Total interest income.......... $ 2,315 $ 1,919 20.6%
------------- -------------

Interest Expense:
Deposits........................... $ 888 $ 582 52.6%
Federal Home Loan Bank
borrowings....................... 398 364 9.3
------------- -------------
Total interest expense........ $ 1,286 $ 946 35.9%
------------- -------------
Net interest income.................. $ 1,029 $ 973 5.8%
------------- -------------

The following table summarizes average balances and average yield and
costs for the three months ended March 31, 2006 and 2005.

Three Months Ended March 31,
2006 2005
------------------------------------------ ------------------------------------------
Interest Interest
Average and Yield/ Average and Yield/
Balance Dividends Cost Balance Dividends Cost
-------------- -------------- -------- -------------- -------------- --------
(Dollars in Thousands)

Assets:
Interest-earning assets:
Loans.................................... $ 147,778 $ 2,135 5.8% $ 121,730 $ 1,756 5.8%
Securities and other..................... 17,366 180 4.2 18,873 163 3.4
-------------- -------------- -------------- --------------
Total interest-earning assets..... 165,144 $ 2,315 5.6 140,603 $ 1,919 5.5
Non-interest-earning assets.............. 7,578 4,241
-------------- --------------
Total assets...................... $ 172,722 $ 144,844
============== ==============

Liabilities:
Total interest-bearing deposits.......... $ 113,479 $ 888 3.1% $ 95,573 $ 582 2.4%
FHLB borrowings.......................... 32,155 398 5.0 29,881 364 4.9
-------------- -------------- -------------- --------------

Total interest-bearing liabilities 145,634 $ 1,286 3.5 125,454 $ 946 3.0
-------------- --------------

Non-interest bearing deposits............ 5,049 3,479
Other non-interest bearing liabilities... 2,930 1,614
-------------- --------------

Total liabilities................. $ 153,613 $ 130,547
============== ==============

Net interest income...................... $ 1,029 $ 973
============== ==============
Interest rate spread..................... 2.1 2.5
Net interest margin...................... 2.5 2.8
Average interest-earning assets to
average interest-bearing liabilities... 113.4% 112.1%

Net interest income for the three months ended March 31, 2006 increased
$56,000, or 5.8%, compared to the same period last year, primarily resulting
from an increase in the amount of total interest- earning assets, which
increased $24.5 million while our interest-bearing liabilities increased only
$20.2 million as we have begun to deploy the capital raised in our offering.
Total interest income increased $396,000 as a result of loan growth, primarily
in nonresidential real estate, and an increase in the yield on other earning
assets. Total interest expense increased $340,000 as a result of increased
average balances of interest-bearing liabilities and an increased cost of funds,
as well as an increase in Federal Home Loan Bank borrowings needed to fund the
loan growth.

Provision for Loan Losses. The allowance for loan losses is a valuation
allowance for probable incurred credit losses in the loan portfolio. We evaluate
the allowance for loan losses on a quarterly basis. When additional allowances
are necessary, a provision for loan losses is charged to earnings. The following
table summarizes the activity in the provision for loan losses for the three
months ended March 31, 2006 and 2005.

Three Months
Ended March 31,
------------------------
2006 2005
---------- ----------
(Dollars in thousands)

Allowance at beginning of period .................. $ 913 $ 772
Provision for loan losses ......................... 30 30
Charge-offs ....................................... (12) (32)
Recoveries ........................................ -- --
---------- ----------
Allowance at end of period ........................ $ 931 $ 770
========== ==========
Allowance to nonaccrual loans ..................... 1,980.9% 2,750.0%
Allowance to total loans outstanding at the
end of the period ............................... 0.6 0.6
Net charge-offs to average loans outstanding
during the period ............................... 0.0 0.0

Non-Interest Income. The following table summarizes non-interest income
for the three months ended March 31, 2006 and 2005.

Three Months
Ended March 31,
---------------------------
2006 2005 % Change
------------ ------------ ------------

(Dollars in thousands)
Service charges on deposit accounts...... $ 59 $ 47 25.5%
Gain on sale of investments.............. 354 -- N/A
Brokerage fee income..................... 242 36 572.2
Other loan fees.......................... 34 26 30.8
Gain on sale of foreclosed assets........ -- 19 N/A
Other income............................. 16 -- N/A
------------ ------------
Total............................. $ 705 $ 128 450.8%
============ ============

The $577,000 increase in non-interest income was primarily due to the
$354,000 pre-tax gain on the sale of investments related to the sale of Freddie
Mac common stock. Additionally, brokerage fee income increased $207,000 due to
the opening of two additional wealth management divisions in North Platte and
Grand Island that sell non-deposit investment products. Other loan fees
increased $8,000 for the three months ended March 31, 2006 from $26,000 in 2005.
This increase is from new loan originations from our new branch facilities in
North Platte and Omaha.

Non-Interest Expense. The following table summarizes non-interest expense
for the three months ended March 31, 2006 and 2005.

Three Months
Ended March 31,
------------------------------
2006 2005 % Change
------------ ------------ ------------

(Dollars in thousands)
Salaries and employee benefits ......... $ 844 $ 539 56.8%
Director and committee fees ............ 24 24 --
Occupancy and equipment ................ 281 234 20.1
Regulatory fees and deposit insurance
premium .............................. 16 15 6.7
Loss on sale of loans .................. 2 -- N/A
Loss on investment in low-income housing
partnerships ......................... 12 13 (7.7)
Advertising and public relations ....... 95 28 239.3
Contributions and donations ............ 19 23 (17.4)
Insurance and surety bond premiums ..... 20 23 (8.7)
Professional fees ...................... 112 12 833.4
Supplies, telephone, postage ........... 58 38 52.6
ATM expenses ........................... 9 7 28.6
Dues and subscriptions ................. 8 6 33.3
Other expenses ......................... 39 33 18.2
------------ ------------
Total ........................ $ 1,539 $ 995 54.7
============ ============

Efficiency ratio (1) ................... 111.5% 90.3%

- -----------------------
(1) Computed as non-interest expense divided by the sum of net interest income
and non-interest income, excluding securities gains and losses.

Total non-interest expense increased $544,000, or 57.0%, for the three
months ended March 31, 2006, from the three months ended March 31, 2005. This
increase is primarily a result of the increase in salaries and employee
benefits, occupancy expense and advertising related to the opening of three new
facilities in Omaha, North Platte and Grand Island. We also recorded increases
in professional fees due to our ongoing strategic activities, including our
expansion activities.

Income Taxes. The Bank recorded a tax expense of $49,000 during the three
months ended March 31, 2006 compared to a tax expense of $5,000 during the three
months ended March 31, 2005. The tax expense in 2006 and 2005 resulted from the
profit recorded during the period. The tax expense has been effected by low
income housing credits of $15,000 for the three months ended March 31, 2006 and
2005.

Results of Operations for the Nine Months Ended March 31, 2006 and 2005

Overview. We recorded a net loss of $508,000 during the nine months ended
March 31, 2006, compared to net income of $152,000 during the nine months ended
March 31, 2005, due primarily to the contribution of $726,000 to the Equitable
Bank Charitable Foundation. The Bank also recorded a loss of $145,000 on the
sale of $6.5 million in mortgage loans. We also incurred additional expenses
related to the opening of our new facilities in Grand Island, North Platte and
Omaha. The loss is offset by the recognition of a pre-tax gain on the sale of
investments of $695,000 relating to the sale of Freddie Mac common stock.
Additional brokerage fee income increased $426,000 due to the opening of two
additional wealth management divisions in North Platte and Grand Island that
sell non-deposit investment products.

Net Interest Income. The following table summarizes changes in interest
income and expense for the nine months ended March 31, 2006 and 2005.

Nine Months
Ended March 31,
------------------------------
2006 2005 % Change
------------ ------------ ------------

(Dollars in Thousands)

Interest Income:
Loans................................ $ 6,045 $ 5,257 15.0%
Securities........................... 455 508 (10.4)
Other................................ 61 11 454.5
------------ ------------
Total interest income........... $ 6,561 $ 5,776 13.6%
------------ ------------

Interest Expense:
Deposits............................. $ 2,408 $ 1,641 46.7%
Federal Home Loan Bank
borrowings......................... 1,266 1,156 9.5
------------ ------------
Total interest expense........... 3,674 2,797 31.4
------------ ------------
Net interest income..................... $ 2,887 $ 2,979 (3.1)%
------------ ------------

The following table summarizes average balances and average yield and
costs for the nine months ended March 31, 2006 and 2005.

Nine Months Ended March 31,
2006 2005
------------------------------------------ ------------------------------------------
Interest Interest
Average and Yield/ Average and Yield/
Balance Dividends Cost Balance Dividends Cost
-------------- -------------- -------- -------------- -------------- --------
(Dollars in Thousands)

Assets:
Interest-earning assets:
Loans.................................... $ 141,355 $ 6,045 5.7% $ 121,025 $ 5,257 5.8%
Securities and other..................... 16,464 516 4.2 19,737 519 3.5
-------------- -------------- -------------- --------------
Total interest-earning assets..... 157,819 6,561 5.5 140,762 5,776 5.5
Non-interest-earning assets.............. 7,568 4,169
-------------- --------------
Total assets...................... $ 165,387 $ 144,931
============== ==============

Liabilities:
Total interest-bearing deposits.......... 108,078 $ 2,408 3.0 $ 94,015 $ 1,641 2.3
FHLB borrowings.......................... 34,223 1,266 4.9 32,049 1,156 4.8
-------------- -------------- -------------- --------------

Total interest-bearing liabilities 142,301 3,674 3.4 126,064 2,797 3.0
-------------- --------------

Non-interest bearing deposits............ 4,657 3,220
Other non-interest bearing liabilities... 1,916 1,371
-------------- --------------

Total liabilities................. $ 148,874 $ 130,655
============== ==============

Net interest income...................... $ 2,887 $ 2,979
============== ==============
Interest rate spread..................... 2.1 2.5
Net interest margin...................... 2.4 2.8
Average interest-earning assets to
average interest-bearing liabilities.. 110.9% 111.7%

Net interest income for the nine months ended March 31, 2006 decreased
$92,000, or 3.1%, compared to the same period last year, as a result of an
increase in funding costs reflecting the rising short-term interest rate
environment and an increase in the average balance of deposits. Average earning
assets increased to $157,819, or 12.1%. Repricing of these assets was less than
the average interest- bearing liabilities. Total interest income increased
$785,000 as a result of loan growth, primarily in nonresidential real estate,
and an increase in the yield on other earning assets. Total interest expense
increased $877,000 as a result of increased average balances of interest-bearing
liabilities and an increased cost of funds, as well as an increase in Federal
Home Loan Bank borrowings needed to fund the loan growth.

Nine Months
Ended March 31,
------------------------
2006 2005
---------- ----------
(Dollars in thousands)

Allowance at beginning of period................... $ 786 $ 746
Provision for loan losses.......................... 90 90
Charge-offs........................................ (25) (67)
Recoveries......................................... 80 1
---------- ----------
Allowance at end of period......................... $ 931 $ 770
========== ==========
Allowance to nonaccrual loans...................... 1980.9% 2,750.0%
Allowance to total loans outstanding at the
end of the period ............................... 0.6 0.6
Net charge-offs to average loans outstanding
during the period................................ 0.0 0.0

Recoveries increased to $80,000 as of March 31, 2006 from $1,000 as of
March 31, 2005. The Bank had charged off a commercial property earlier in the
year and then had a subsequent recovery of $80,000 on the same property.

Non-Interest Income. The following table summarizes non-interest income
for the nine months ended March 31, 2006 and 2005.

Nine Months
Ended March 31,
---------------------------
2006 2005 % Change
------------ ------------ ------------

(Dollars in thousands)
Service charges on deposit accounts...... $ 171 $ 148 15.5%
Gain on sale of investments.............. 695 -- N/A
Brokerage fee income..................... 609 183 232.8
Other loan fees.......................... 143 85 68.2
Gain on sale of foreclosed assets........ -- 33 N/A
Other income............................. 75 49 53.1
------------ ------------
Total............................. $ 1,693 $ 498 240.2%
============ ============

The $1,195,000 increase in non-interest income was primarily due to the
$695,000 pre-tax gain on sale of investments relating to the sale of Freddie Mac
common stock. Additionally, brokerage fee income increased $426,000 due to the
opening of two additional wealth management divisions in North Platte and Grand
Island that sell non-deposit investment products. Other loan fees increased
$58,000 for the nine months ended March 31, 2006 from $85,000 in 2005. This
increase is from the increase in loan originations from our new branch
facilities in North Platte, Omaha and Grand Island.

Non-Interest Expense. The following table summarizes non-interest expense
for the nine months ended March 31, 2006 and 2005.

Nine Months
Ended March 31,
---------------------------
2006 2005 % Change
------------ ------------ ------------

(Dollars in thousands)
Salaries and employee benefits................. $ 2,441 $ 1,820 34.1%
Director and committee fees.................... 73 73 --
Occupancy and equipment........................ 875 674 29.8
Regulatory fees and deposit insurance
premium...................................... 45 44 2.3
Loss on sale of loans.......................... 145 -- N/A
Loss on investment in low-income housing
partnerships................................. 39 43 9.3
Advertising and public relations............... 252 157 60.5
Contributions and donations.................... 823 74 1,012.2
Insurance and surety bond premiums............. 63 61 3.3
Professional fees.............................. 222 41 441.4
Supplies, telephone, postage................... 174 98 77.6
ATM expenses................................... 26 23 13.0
Dues and subscriptions......................... 37 23 60.9
Other expenses................................. 133 89 49.4
------------ ------------
Total................................ $ 5,348 $ 3,220 66.1
============ ============

Efficiency ratio (1)........................... 137.7% 92.6%

- -----------------------
(1) Computed as non-interest expense divided by the sum of net interest income
and non-interest income, excluding securities gains and losses.

Total non-interest expense increased $2.1 million, or 66.1%, for the nine
months ended March 31, 2006, from the nine months ended March 31, 2005. This
increase is primarily as a result of the $726,000 expense related to the
establishment and funding of the Equitable Bank Charitable Foundation in
connection with the reorganization. In addition, non-interest expense increased
as a result of the increase in salaries and employee benefits, occupancy expense
and advertising related to the opening of three new facilities in Omaha, North
Platte and Grand Island. We also recorded increases in professional fees due to
our ongoing strategic activities, including our expansion activities. During the
nine months ended March 31, 2006, the Bank also incurred a $145,000 loss on the
sale of a $6.5 million portfolio of its longer-term, lower coupon one-to-four
family mortgage loans.

Income Taxes. The Bank recorded a tax benefit of $350,000 during the nine
months ended March 31, 2006 compared to a tax expense of $15,000 during the nine
months ended March 31, 2005. The effective tax rate was (40.8)% for the nine
months ended March 31, 2006 compared to 9% for the nine months ended March 31,
2005. The tax benefit in 2006 resulted from the loss recorded during the period.
The tax benefit/expense has been effected by the low income housing credits of
$45,000 for the nine months ended March 31, 2006 and 2005.

Liquidity and Capital Management

Liquidity Management. Liquidity is the ability to meet current and future
financial obligations of a short-term nature. Our primary sources of funds
consist of deposit in-flows, loan repayments, maturities and sales of
securities, and Federal Home Loan Bank borrowings. While maturities and
scheduled amortization of loans and securities are predictable sources of funds,
deposit flows and loan prepayments are greatly influenced by general interest
rates, economic conditions and competition.

We regularly adjust our investments in liquid assets based upon our
assessment of (1) expected loan demand, (2) expected deposit flows, (3) yields
available on interest-earning deposits and securities and (4) the objectives of
our asset/liability management policy.

Our most liquid assets are cash and cash equivalents. The levels of these
assets depend on our operating, financing, lending and investing activities
during any given period. At March 31, 2006, cash and cash equivalents totaled
$4.3 million. Securities classified as available-for-sale whose market value
exceeds our cost, which provide additional sources of liquidity, totaled
$505,000 at March 31, 2006. Total securities classified as available-for-sale
were $10.6 million at March 31, 2006. Of this amount, $5.3 million were pledged
to secure certain depository relationships, such as certificates of deposit and
checking accounts held by various municipal entities and a charitable
organization, as well as a line of credit with the Federal Home Loan Bank of
Topeka. In addition, at March 31, 2006, we had the ability to borrow a total of
approximately $68.6 million from the Federal Home Loan Bank of Topeka. On March
31, 2006, we had $31.4 million of borrowings outstanding. Early prepayment of
these borrowings would incur approximately $341,000 in prepayment penalties.
Future growth of our loan portfolio resulting from our expansion efforts may
require us to borrow additional funds.

At March 31, 2006, we had $13.2 million in loan commitments outstanding,
which consisted of $2.4 million of mortgage loan commitments, $5.6 million in
unused home equity lines of credit, $156,000 in personal lines of credit, and
$5.0 million in commercial lines of credit. Certificates of deposit due within
one year of March 31, 2006 totaled $41.8 million, or 47.0%, of certificates of
deposit. We believe the large percentage of certificates of deposit that mature
within one year reflects customers' hesitancy to invest their funds for long
periods in the current interest rate environment. If these maturing deposits do
not remain with us, we will be required to seek other sources of funds,
including other certificates of deposit and borrowings. Depending on market
conditions, we may be required to pay higher rates on such deposits or other
borrowings than we currently pay on the certificates of deposit due on or before
December 31, 2006. We believe, however, based on past experience that a
significant portion of our certificates of deposit will remain with us. We have
the ability to attract and retain deposits by adjusting the interest rates
offered.

Capital Management. We are subject to various regulatory capital
requirements administered by the Office of Thrift Supervision, including a
risk-based capital measure. The risk-based capital guidelines include both a
definition of capital and a framework for calculating risk-weighted assets by
assigning balance sheet assets and off-balance sheet items to broad risk
categories. At March 31, 2006, we exceeded all of our regulatory capital
requirements. We are considered "well capitalized" under regulatory guidelines.

We also manage our capital for maximum stockholder benefit. The capital
from our recently completed stock offering significantly increased our liquidity
and capital resources. Over time, the initial level of liquidity will be
reduced, as net proceeds from the stock offering are used for general corporate
purposes, including the funding of lending activities. We may use capital
management tools such as cash dividends and common stock repurchases. However,
under the Office of Thrift Supervision regulations, we are not allowed to
repurchase any shares during the first year following the offering, except under
limited circumstances.

Off-Balance Sheet Arrangements

In the normal course of operations, we engage in a variety of financial
transactions that, in accordance with U.S. generally accepted accounting
principles, are not recorded in our financial statements. These transactions
involve, to varying degrees, elements of credit, interest rate and liquidity
risk. Such transactions are used primarily to manage customers' requests for
funding and take the form of loan commitments and lines of credit. We currently
have no plans to engage in hedging activities in the future.

For the nine months ended March 31, 2006 and the year ended June 30, 2005,
we did not engage in any off-balance sheet transactions reasonably likely to
have a material effect on our financial condition, results of operations or cash
flows.

Commitments

Since March 31, 2005, we have opened the following new offices: an
additional loan production and retail investment office in Grand Island that we
intend to convert to a full-service branch in calendar year 2006; a full-service
branch in North Platte; and a loan production office in Omaha that we intend to
convert to a full-service branch at a new location in May 2006. Based on current
estimates, we expect the total cost of the land and construction for the new
Grand Island and North Platte locations to be $3.3 million, of which $1.2
million had been incurred at March 31, 2006. We will lease our initial location
in Omaha and expect annual lease expenses to be approximately $132,000. We are
currently in the process of renovating our main office facility in Grand Island
in the first half of 2006 for an estimated cost of $600,000 of which $102,000
had been incurred at March 31, 2006.

Item 3. Controls and Procedures

The Company's management, including the Company's principal executive
officer and principal financial officer, have evaluated the effectiveness of the
Company's "disclosure controls and procedures," as such term is defined in Rule
13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Based upon their evaluation, the principal executive officer
and principal financial officer concluded that, as of the end of the period
covered by this report, the Company's disclosure controls and procedures were
effective for the purpose of ensuring that the information required to be
disclosed in the reports that the Company files or submits under the Exchange
Act with the Securities and Exchange Commission (the "SEC") (1) is recorded,
processed, summarized and reported within the time periods specified in the
SEC's rules and forms and (2) is accumulated and communicated to the Company's
management, including its principal executive and principal financial officers,
as appropriate to allow timely decisions regarding required disclosure.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

Equitable Financial Corp. is not involved in any pending legal
proceedings. Equitable Bank is not involved in any pending legal proceedings
other than routine legal proceedings occurring in the ordinary course of
business. Such routine legal proceedings, in the aggregate, are believed by
management to be immaterial to its financial condition, results of operations or
cash flows.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Company did not repurchase any of its common stock during the quarter
March 31, 2006 and at March 31, 2006, the Company had no publicly announced
repurchase plans or programs.

Item 3. Defaults upon Senior Securities

Not Applicable.

Item 4. Submission of Matters to a Vote of Security Holders

Not Applicable.

Item 5. Other Information

None.

Item 6. Exhibits

3.1 Charter of Equitable Financial Corp. (1)

3.2 Bylaws of Equitable Financial Corp. (1)

4.0 Stock Certificate of Equitable Financial Corp. (2)

10.1 Employment Agreement among Equitable Bank, Equitable Financial Corp.
and Richard L. Harbaugh

10.2 Employment Agreement among Equitable Bank, Equitable Financial Corp.
and Kim E. Marco

10.3 Employment Agreement among Equitable Bank, Equitable Financial Corp.
and Terry M. Pfeifer

10.4 Form of Equitable Bank Employee Severance Compensation Plan (2)

10.5 Form of Equitable Bank Supplemental Executive Retirement Plan (2)

31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

32.0 Section 1350 Certification

-----------------------
(1) Incorporated by reference into this document from the Exhibits filed
with the Securities and Exchange Commission on the Quarterly Report
on Form 10-QSB on February 14, 2006.

(2) Incorporated by reference into this document from the Exhibits filed
with the Securities and Exchange Commission on the Registration
Statement on Form SB-2, and any amendments thereto, Registration No.
333-126617.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.

EQUITABLE FINANCIAL CORP.

Dated: May 12, 2006 By: /s/ Richard L. Harbaugh
------------------------------
Richard L. Harbaugh
President and Chief Executive Officer
(principal executive officer)

Dated: May 12, 2006 By: /s/ Kim E. Marco
------------------------------
Kim E. Marco
Executive Vice President and
Chief Financial Officer
(principal financial and accounting
officer)