• First Savings Financial Group, Inc. Reports Financial Results for the Second Fiscal Quarter Ended March 31, 2022

    Source: Nasdaq GlobeNewswire / 25 Apr 2022 17:09:43   America/Chicago

    JEFFERSONVILLE, Ind., April 25, 2022 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $7.0 million, or $0.98 per diluted share, for the quarter ended March 31, 2022 compared to net income of $10.5 million, or $1.46 per diluted share, for the quarter ended March 31, 2021.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated: “We are pleased with this quarter’s loan origination volume, stable net interest margin and improved asset quality ratios. Excluding a $32.6 million decrease in PPP loans and a $38.2 million transfer of single tenant net lease loans from held-for-investment to held-for-sale, net loans held for investment would’ve increased $55.0 million for the quarter. While the Company continues to enhance the performance of the SBA lending and mortgage banking segments, the core banking segment continues to provide solid performance. I remain optimistic that the Company is positioning itself well for the opportunities and challenges occurring during 2022. We remain poised to thrive and deliver exceptional value to our shareholders.”

    Results of Operations for the Three Months Ended March 31, 2022 and 2021

    Net interest income decreased $767,000, or 5.2%, to $14.0 million for the three months ended March 31, 2022 as compared to the same period in 2021. The decrease in net interest income was due to a $1.0 million decrease in interest income, partially offset by a $272,000 decrease in interest expense. Interest income decreased due to a decrease in the average balance of interest-earning assets of $78.1 million, from $1.64 billion for 2021 to $1.56 billion for 2022, and a decrease in the weighted-average tax-equivalent yield, from 4.19% for 2021 to 4.14% for 2022. The decrease in the average balance of interest-earning assets was due to a decrease in the average balance of PPP loans of $142.5 million. Interest expense decreased due to a decrease in the average balance of interest-bearing liabilities of $85.6 million, from $1.31 billion for 2021 to $1.23 billion for 2022, and a decrease in the average cost of interest-bearing liabilities, from 0.63% for 2021 to 0.58% for 2022. The decrease in the average cost of interest-bearing liabilities for 2022 was due primarily to lower market interest rates on wholesale funding sources, including brokered certificates of deposit, FHLB borrowings, and subordinated debt.

    The Company recognized a credit for loan losses of $30,000 for the three months ended March 31, 2022 compared to a provision of $287,000 for the same period in 2021. The Company recognized net charge-offs of $275,000 for the three months ended March 31, 2022, substantially all of which was related to unguaranteed portions of SBA loans, compared to net recoveries of $7,000 for the same period in 2021.

    Noninterest income decreased $18.9 million for the three months ended March 31, 2022 as compared to the same period in 2021. The decrease was due primarily to a decrease in mortgage banking income of $15.2 million. The decrease in mortgage banking income was primarily due to a $23.6 million decrease in production revenue from lower originations for sale, a decrease in the gain on sale margin and an $11.3 million decrease in capitalized residential mortgage loan servicing rights, partially offset by a $7.5 million increase in the fair value of the residential mortgage loan servicing rights portfolio in 2022 as compared to a $1.9 million increase in fair value recognized in 2021. Mortgage loans originated for sale were $459.4 million in the three months ended March 31, 2022 as compared to $1.34 billion in the same period in 2021.

    Noninterest expense decreased $13.8 million for the three months ended March 31, 2022 as compared to the same period in 2021. The decrease was due primarily to decreases in compensation and benefits and advertising expense of $12.0 million and $1.1 million, respectively. The decrease in compensation and benefits expense is due primarily to a reduction in incentive compensation for the Company’s mortgage banking segment as a result of decreased mortgage banking income. The decrease in advertising expense was related to the reduced loan origination volume of the mortgage banking segment.

    The Company recognized income tax expense of $1.6 million for the three months ended March 31, 2022 compared to $3.7 million for the same period in 2021. The decrease was primarily the result of lower pretax income in 2022. The effective tax rate for 2022 was 18.7% as compared to 26.1% for 2021. The lower effective tax rate for 2022 was primarily due to lower nondeductible executive compensation expense in 2022 as compared to 2021.

    Results of Operations for the Six Months Ended March 31, 2022 and 2021

    The Company reported net income of $11.3 million, or $1.58 per diluted share, for the six months ended March 31, 2022 compared to net income of $20.4 million, or $2.85 per diluted share, for the six months ended March 31, 2021.

    Net interest income decreased $603,000, or 2.1%, to $27.9 million for the six months ended March 31, 2022 as compared to the same period in 2021. The decrease in net interest income was due to a $1.3 million decrease in interest income, partially offset by a $700,000 decrease in interest expense. Interest income decreased due to a decrease in the average balance of interest-earning assets of $88.8 million, from $1.63 billion for 2021 to $1.54 billion for 2022, partially offset by an increase in the weighted-average tax-equivalent yield, from 4.11% for 2021 to 4.18% for 2022. The decrease in the average balance of interest-earning assets was due primarily to a decrease in the average balance of PPP loans of $135.2 million. Interest expense decreased due to a decrease in the average balance of interest-bearing liabilities of $99.5 million, from $1.31 billion for 2021 to $1.21 billion for 2022, and a decrease in the average cost of interest-bearing liabilities, from 0.66% for 2021 to 0.60% for 2022. The decrease in the average cost of interest-bearing liabilities for 2022 was due primarily to lower market interest rates on wholesale funding sources, including brokered certificates of deposit, FHLB borrowings, and subordinated debt.

    The Company recognized a provision for loan losses of $496,000 for the six months ended March 31, 2022 compared to a provision of $955,000 for the same period in 2021. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $5.4 million from $15.5 million at September 30, 2021 to $10.1 million at March 31, 2022. The Company recognized net charge-offs of $322,000 for the six months ended March 31, 2022, of which $292,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $562,000 for the same period in 2021, of which $496,000 was related to unguaranteed portions of SBA loans.

    Noninterest income decreased $48.5 million for the six months ended March 31, 2022 as compared to the same period in 2021. The decrease was due primarily to a decrease in mortgage banking income of $45.7 million. The decrease in mortgage banking income was primarily due to a $58.6 million decrease in production revenue from lower originations for sale, a decrease in the gain on sale margin in 2022, and a $19.6 million decrease in capitalized residential mortgage loan servicing rights, partially offset by a $10.7 million increase in the fair value of the residential mortgage loan servicing rights portfolio in 2022 as compared to a $608,000 increase in fair value recognized in 2021. Mortgage loans originated for sale were $1.00 billion in the six months ended March 31, 2022 as compared to $2.78 billion in the same period in 2021.

    Noninterest expense decreased $33.4 million for the six months ended March 31, 2022 as compared to the same period in 2021. The decrease was due primarily to decreases in compensation and benefits and advertising expense of $28.6 million and $2.6 million, respectively. The decrease in compensation and benefits expense is due primarily to a reduction in incentive compensation for the Company’s mortgage banking segment as a result of decreased mortgage banking income. The decrease in advertising expense was related to the reduced loan origination volume of the mortgage banking segment.

    The Company recognized income tax expense of $2.4 million for the six months ended March 31, 2022 compared to $8.2 million for the same period in 2021. The decrease was primarily the result of lower pretax income in 2022. The effective tax rate for 2022 was 17.6% as compared to 28.3% for 2021. The lower effective tax rate for 2022 was primarily due to lower nondeductible executive compensation expense in 2022 as compared to 2021.

    Comparison of Financial Condition at March 31, 2022 and September 30, 2021

    Total assets increased $80.6 million, from $1.72 billion at September 30, 2021 to $1.80 billion at March 31, 2022. Net loans held for investment increased $50.9 million during the six months ended March 31, 2022, due primarily to growth in residential mortgage loans, single-tenant net lease commercial real estate loans and non-SBA commercial business loans, partially offset by a $43.3 million decrease in PPP loans. Excluding the decrease in PPP loans and the transfer of $38.2 million of single tenant net lease loans from held-for-investment to held-for-sale during the three months ended March 31, 2022, net loans held for investment increased $132.3 million, or 13.0%, during the six months ended March 31, 2022. Residential mortgage and SBA loans held for sale decreased $69.2 million and $8.3 million, respectively, during the six months ended March 31, 2022 due to loan sales outpacing originations. Single tenant net lease loans held for sale increased $15.2 million during the six months ended March 31, 2022, due to originations and transfers from held-for-investment to held-for-sale outpacing sales during the period. Residential mortgage loan servicing rights increased $14.1 million, or 28.4%, to $63.7 million at March 31, 2022 as the Company continued to increase its loan servicing portfolio during the six months ended March 31, 2022.

    Total liabilities increased $81.0 million due primarily to increases in FHLB borrowings and other borrowings of $46.6 million and $30.3 million, respectively. The increase in FHLB borrowings was primarily used to fund loan growth. The increase in other borrowings was due to a $31.0 million subordinated debt issuance in March 2022.

    Common stockholders’ equity decreased $424,000 from $180.4 million at September 30, 2021 to $180.0 million at March 31, 2022, due primarily to a decrease in accumulated other comprehensive income of $10.2 million, partially offset by retained net income of $9.5 million. The decrease in accumulated other comprehensive income was primarily due to increasing market interest rates during the six months ended March 31, 2022, which resulted in a decrease in the fair value of the available-for-sale securities portfolio. At March 31, 2022 and September 30, 2021, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

    First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the river from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has three national lending programs, including single-tenant net lease commercial real estate, SBA lending and residential mortgage banking, with offices located throughout the United States. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

    This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.

    Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including the duration, extent and severity of the COVID-19 pandemic, including its effect on our customers, service providers and on the economy and financial markets in general; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.

    Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

    Contact:
    Tony A. Schoen, CPA
    Chief Financial Officer
    812-283-0724

    FIRST SAVINGS FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS
    (Unaudited)
              
    * All share and per share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021.      
              
     Three Months Ended Six Months Ended  
    OPERATING DATA:March 31, March 31,  
    (In thousands, except share and per share data) 2022   2021   2022   2021   
              
    Total interest income$15,801  $16,840  $31,563  $32,866   
    Total interest expense 1,788   2,060   3,647   4,347   
              
    Net interest income 14,013   14,780   27,916   28,519   
    Provision (credit) for loan losses (30)  287   496   955   
              
    Net interest income after provision (credit) for loan losses 14,043   14,493   27,420   27,564   
              
    Total noninterest income 20,072   38,973   36,663   85,156   
    Total noninterest expense 25,461   39,284   50,313   83,686   
              
    Income before income taxes 8,654   14,182   13,770   29,034   
    Income tax expense 1,619   3,695   2,430   8,222   
              
    Net income 7,035   10,487   11,340   20,812   
              
    Less: Net income attributable to noncontrolling interests -   -   -   402   
              
    Net income attributable to the Company$7,035  $10,487  $11,340  $20,410   
              
    Net income per share, basic$0.99  $1.48  $1.60  $2.87   
    Weighted average shares outstanding, basic 7,076,355   7,108,926   7,086,739   7,105,014   
              
    Net income per share, diluted$0.98  $1.46  $1.58  $2.85   
    Weighted average shares outstanding, diluted 7,156,229   7,164,189   7,173,710   7,159,125   
              
              
    Performance ratios (three-month and six-month data annualized)         
    Return on average assets 1.61%  2.34%  1.31%  2.29%  
    Return on average equity 15.24%  24.97%  12.36%  25.20%  
    Return on average common stockholders' equity 15.24%  24.97%  12.36%  24.75%  
    Net interest margin (tax equivalent basis) 3.68%  3.69%  3.71%  3.58%  
    Efficiency ratio 74.70%  73.08%  77.91%  73.62%  
              
              
         QTD   FYTD
    FINANCIAL CONDITION DATA:March 31, December 31, Increase September 30, Increase
    (In thousands, except per share data) 2022   2021  (Decrease)  2021  (Decrease)
              
    Total assets$1,801,944  $1,764,589  $37,355  $1,721,394  $80,550 
    Cash and cash equivalents 31,105   40,592   (9,487)  33,428   (2,323)
    Investment securities 284,674   220,926   63,748   208,518   76,156 
    Loans held for sale 152,652   161,218   (8,566)  214,940   (62,288)
    Gross loans (1) 1,141,293   1,157,435   (16,142)  1,090,237   51,056 
    Allowance for loan losses 14,475   14,780   (305)  14,301   174 
    Interest earning assets 1,602,321   1,570,079   32,242   1,540,111   62,210 
    Goodwill 9,848   9,848   -   9,848   - 
    Core deposit intangibles 882   935   (53)  988   (106)
    Loan servicing rights 68,267   59,187   9,080   54,026   14,241 
    Noninterest-bearing deposits 311,738   287,449   24,289   291,039   20,699 
    Interest-bearing deposits (2) 909,451   979,586   (70,135)  936,541   (27,090)
    Federal Home Loan Bank borrowings 296,592   258,377   38,215   250,000   46,592 
    Total liabilities 1,621,991   1,580,369   41,622   1,541,017   80,974 
    Stockholders' equity, net of noncontrolling interests 179,953   184,220   (4,267)  180,377   (424)
              
    Book value per share$25.10  $25.69  $(0.60) $25.31  $(0.21)
    Tangible book value per share (3) 23.60   24.19   (0.59)  23.79   (0.19)
              
    Non-performing assets:         
    Nonaccrual loans - SBA guaranteed$5,214  $5,518  $(304) $6,748  $(1,534)
    Nonaccrual loans - unguaranteed 4,842   7,210   (2,368)  8,252   (3,410)
    Total nonaccrual loans$10,056  $12,728  $(2,672) $15,000  $(4,944)
    Accruing loans past due 90 days -   -   -   472   (472)
    Total non-performing loans 10,056   12,728   (2,672)  15,472   (5,416)
    Troubled debt restructurings classified as performing loans 3,017   1,704   1,313   1,743   1,274 
    Total non-performing assets$13,073  $14,432  $(1,359) $17,215  $(4,142)
              
    Asset quality ratios:         
    Allowance for loan losses as a percent of total gross loans 1.27%  1.28%  (0.01%)  1.31%  (0.04%)
    Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4) 1.28%  1.33%  (0.05%)  1.38%  (0.10%)
    Allowance for loan losses as a percent of nonperforming loans 143.94%  116.12%  27.82%  92.43%  51.51%
    Nonperforming loans as a percent of total gross loans 0.88%  1.10%  (0.22%)  1.42%  (0.54%)
    Nonperforming assets as a percent of total assets 0.73%  0.82%  (0.09%)  1.00%  (0.27%)
              
    (1) Includes $13.4 million, $46.0 million and $56.7 million of PPP loans at March 31, 2022, December 31, 2021 and September 30, 2021, respectively.  
              
    (2) Includes $69.8 million, $120.6 million and $100.1 million of brokered certificates of deposit at March 31, 2022, December 31, 2021 and September 30, 2021, respectively.
              
    (3) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.    
              
    (4) Denominator excludes PPP loans, which are fully guaranteed by the SBA. This ratio is non-GAAP, but is believed by management to be meaningful because it provides a comparable ratio
    after eliminating PPP loans.         
              
              
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):        
    The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's    
    performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to  
    evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the   
    Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.    
              
         QTD   FYTD
     March 31, December 31, Increase September 30, Increase
    Tangible Book Value Per Share 2022   2021  (Decrease)  2021  (Decrease)
    (In thousands, except share and per share data)         
              
    Stockholders' equity, net of noncontrolling interests (GAAP)$179,953  $184,220  $(4,267) $180,377  $(424)
    Less: goodwill and core deposit intangibles (10,730)  (10,783)  53   (10,836)  106 
    Tangible equity (non-GAAP)$169,223  $173,437   (4,214) $169,541   (318)
              
    Outstanding common shares 7,169,826   7,169,826   -   7,125,888   43,938 
              
    Tangible book value per share (non-GAAP)$23.60  $24.19  $(0.59) $23.79  $(0.19)
              
    Book value per share (GAAP)$25.10  $25.69  $(0.60) $25.31  $(0.21)
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):As of
    Summarized Consolidated Balance SheetsMarch 31, December 31, September 30, June 30, March 31,
    (In thousands, except per share data) 2022   2021   2021   2021   2021 
    Total cash and cash equivalents$31,105  $40,592  $33,428  $22,909  $30,837 
    Total investment securities 284,674   220,926   208,518   209,551   207,331 
    Total loans held for sale 152,652   161,218   214,940   277,374   207,141 
    Total loans, net of allowance for loan losses 1,126,818   1,142,655   1,075,936   1,065,852   1,128,348 
    PPP loans 13,415   46,020   56,656   100,573   159,320 
    Loan servicing rights 68,267   59,187   54,026   51,778   49,367 
    Total assets 1,801,944   1,764,589   1,721,394   1,759,330   1,751,257 
              
    Retail deposits$1,151,437  $1,146,454  $1,127,522  $1,064,358  $1,018,490 
    Brokered deposits 69,752   120,581   100,058   62,797   77,006 
    Total deposits 1,221,189   1,267,035   1,227,580   1,127,155   1,095,496 
    Federal Home Loan Bank borrowings 296,592   258,377   250,000   283,289   289,237 
    Federal Reserve PPPLF borrowings -   -   -   107,829   128,494 
              
    Common stock and additional paid-in capital$27,154  $27,073  $25,799  $25,741  $25,708 
    Retained earnings - substantially restricted 159,732   153,630   150,185   146,191   142,738 
    Accumulated other comprehensive income (loss) (1,336)  9,219   8,900   10,358   9,182 
    Unearned stock compensation (1,180)  (1,285)  (138)  (184)  (245)
    Less treasury stock, at cost (4,417)  (4,417)  (4,369)  (4,371)  (4,343)
    Total stockholders' equity 179,953   184,220   180,377   177,735   173,040 
              
    Outstanding common shares 7,169,826   7,169,826   7,125,888   7,124,388   7,125,081 
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Summarized Consolidated Statements of IncomeMarch 31, December 31, September 30, June 30, March 31,
    (In thousands, except per share data) 2022   2021   2021   2021   2021 
    Total interest income$15,801  $15,762  $16,243  $16,150  $16,840 
    Total interest expense 1,788   1,859   1,819   1,921   2,060 
    Net interest income 14,013   13,903   14,424   14,229   14,780 
    Provision (credit) for loan losses (30)  526   8   (2,730)  287 
    Net interest income after provision (credit) for loan losses 14,043   13,377   14,416   16,959   14,493 
              
    Total noninterest income 20,072   16,591   16,495   18,785   38,973 
    Total noninterest expense 25,461   24,852   25,104   30,619   39,284 
    Income before income taxes 8,654   5,116   5,807   5,125   14,182 
    Income tax expense 1,619   811   958   817   3,695 
    Net income attributable to the Company$7,035  $4,305  $4,849  $4,308  $10,487 
              
              
    Net income per share, basic$0.99  $0.60  $0.68  $0.61  $1.48 
    Weighted average shares outstanding, basic 7,076,355   7,116,790   7,111,594   7,109,481   7,108,926 
              
    Net income per share, diluted$0.98  $0.60  $0.67  $0.60  $1.46 
    Weighted average shares outstanding, diluted 7,156,229   7,207,210   7,200,357   7,178,943   7,164,189 
              
     Three Months Ended
     March 31, December 31, September 30, June 30, March 31,
    Consolidated Performance Ratios (Annualized) 2022   2021   2021   2021   2021 
    Return on average assets 1.61%  1.01%  1.12%  1.00%  2.34%
    Return on average equity 15.24%  9.45%  10.92%  9.94%  24.97%
    Return on average common stockholders' equity 15.24%  9.45%  10.92%  9.94%  24.97%
    Net interest margin (tax equivalent basis) 3.68%  3.73%  3.79%  3.75%  3.69%
    Efficiency ratio 74.70%  81.50%  81.19%  92.75%  73.08%
              
     As of or for the Three Months Ended
     March 31, December 31, September 30, June 30, March 31,
    Consolidated Asset Quality Ratios 2022   2021   2021   2021   2021 
    Nonperforming loans as a percentage of total loans 0.88%  1.10%  1.42%  1.15%  1.00%
    Nonperforming assets as a percentage of total assets 0.73%  0.82%  1.00%  0.81%  0.78%
    Allowance for loan losses as a percentage of total loans 1.27%  1.28%  1.31%  1.36%  1.52%
    Allowance for loan losses as a percentage of nonperforming loans 143.94%  116.12%  92.43%  117.88%  152.72%
    Net charge-offs to average outstanding loans 0.02%  0.00%  0.03%  0.00%  -0.00%
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Segmented Statements of Income InformationMarch 31, December 31, September 30, June 30, March 31,
    (In thousands, except per share data) 2022   2021   2021   2021   2021 
    Core Banking Segment:         
    Net interest income$11,847  $11,495  $11,517  $11,401  $11,114 
    Provision (credit) for loan losses (240)  (144)  (189)  (2,401)  106 
    Net interest income after provision (credit) for loan losses 12,087   11,639   11,706   13,802   11,008 
    Noninterest income 2,163   1,942   1,780   1,509   1,490 
    Noninterest expense 9,811   9,482   8,800   9,364   8,991 
    Income before income taxes 4,439   4,099   4,686   5,947   3,507 
    Income tax expense 330   500   569   792   507 
    Net income attributable to the Company$4,109  $3,599  $4,117  $5,155  $3,000 
              
    SBA Lending Segment (Q2):         
    Net interest income (5)$1,602  $1,875  $2,455  $2,510  $3,227 
    Provision (credit) for loan losses 210   670   197   (329)  181 
    Net interest income after provision (credit) for loan losses 1,392   1,205   2,258   2,839   3,046 
    Noninterest income 1,658   1,901   2,194   2,675   3,407 
    Noninterest expense 2,253   2,236   1,973   2,206   2,449 
    Income before income taxes 797   870   2,479   3,308   4,004 
    Income tax expense 240   265   612   790   1,005 
    Net income attributable to the Company (6)$557  $605  $1,867  $2,518  $2,999 
              
    Mortgage Banking Segment:         
    Net interest income$564  $533  $452  $318  $439 
    Provision for loan losses -   -   -   -   - 
    Net interest income after provision for loan losses 564   533   452   318   439 
    Noninterest income 16,251   12,748   12,521   14,601   34,076 
    Noninterest expense 13,397   13,134   14,331   19,049   27,844 
    Income (loss) before income taxes 3,418   147   (1,358)  (4,130)  6,671 
    Income tax expense (benefit) 1,049   46   (223)  (765)  2,183 
    Net income (loss) attributable to the Company$2,369  $101  $(1,135) $(3,365) $4,488 
              
    (5) Includes net interest income derived from PPP loans of:$239  $550  $1,145  $1,220  $1,887 
              
    (6) Includes net income attributable to the Company derived from PPP loans (tax effected) of:$179  $413  $859  $915  $1,415 
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Segmented Statements of Income InformationMarch 31, December 31, September 30, June 30, March 31,
    (In thousands, except per share data) 2022   2021   2021   2021   2021 
    Net Income (Loss) Per Share by Segment         
    Net income per share, basic - Core Banking$0.58  $0.50  $0.58  $0.73  $0.42 
    Net income per share, basic - SBA Lending (Q2) (7) 0.08   0.09   0.26   0.35   0.42 
    Net income (loss) per share, basic - Mortgage Banking 0.33   0.01   (0.16)  (0.47)  0.64 
    Total net income per share, basic (7)$0.99  $0.60  $0.68  $0.61  $1.48 
              
    Net Income (Loss) Per Diluted Share by Segment         
    Net income per share, diluted - Core Banking$0.57  $0.50  $0.57  $0.72  $0.42 
    Net income per share, diluted - SBA Lending (Q2) (8) 0.08   0.09   0.26   0.35   0.42 
    Net income (loss) per share, diluted - Mortgage Banking 0.33   0.01   (0.16)  (0.47)  0.62 
    Total net income per share, diluted (8)$0.98  $0.60  $0.67  $0.60  $1.46 
              
    Return on Average Assets by Segment (three-month data annualized)         
    Core Banking 1.14%  1.05%  1.24%  1.62%  0.97%
    SBA Lending 1.80%  1.55%  4.01%  4.09%  4.29%
    Mortgage Banking 5.38%  0.23%  (2.11%)  (6.84%)  6.54%
              
    Efficiency Ratio by Segment (three-month data annualized)         
    Core Banking 70.03%  70.57%  66.18%  72.53%  71.33%
    SBA Lending 69.11%  59.22%  42.44%  42.55%  36.92%
    Mortgage Banking 79.67%  98.89%  110.47%  127.68%  80.67%
              
    (7) Includes basic net income per share derived from PPP loans (tax effected) of:$0.03  $0.06  $0.12  $0.13  $0.20 
              
    (8) Includes diluted net income per share derived from PPP loans (tax effected) of:$0.03  $0.06  $0.12  $0.13  $0.20 
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Noninterest Expense Detail by SegmentMarch 31, December 31, September 30, June 30, March 31,
    (In thousands) 2022   2021   2021   2021   2021 
    Core Banking Segment:         
    Compensation (9)$5,207  $5,776  $5,220  $5,039  $4,895 
    Occupancy 1,393   1,357   1,415   1,473   1,387 
    Advertising 297   232   268   213   248 
    Other 2,914   2,117   1,897   2,639   2,461 
    Total Noninterest Expense$9,811  $9,482  $8,800  $9,364  $8,991 
              
    SBA Lending Segment (Q2):         
    Compensation$1,724  $1,685  $1,602  $1,697  $1,929 
    Occupancy 64   78   83   101   129 
    Advertising 9   9   6   3   8 
    Other 456   464   282   405   383 
    Total Noninterest Expense$2,253  $2,236  $1,973  $2,206  $2,449 
              
    Mortgage Banking Segment:         
    Compensation (9)$10,545  $9,830  $11,456  $14,594  $22,657 
    Occupancy 622   678   723   1,012   998 
    Advertising 696   551   588   1,133   1,796 
    Other 1,534   2,075   1,564   2,310   2,393 
    Total Noninterest Expense$13,397  $13,134  $14,331  $19,049  $27,844 
              
    (9) Compensation includes increases for Core Banking and corresponding decreases for Mortgage        
    Banking segments that represent intersegment allocations for loans originated by the        
    Mortgage Banking segment to be held for investment in the Core Banking loan portfolio of:$869  $975  $678  $-  $- 
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
     March 31, December 31, September 30, June 30, March 31,
    Mortgage Banking Noninterest Expense Fixed vs. Variable 2022   2021   2021   2021   2021 
    (In thousands)         
    Noninterest Expense - Fixed Expenses$7,936  $7,752  $7,779  $9,764  $11,713 
    Noninterest Expense - Variable Expenses (10) 5,461   5,382   6,552   9,285   16,131 
    Total Noninterest Expense$13,397  $13,134  $14,331  $19,049  $27,844 
              
              
     Three Months Ended
    SBA Lending (Q2) DataMarch 31, December 31, September 30, June 30, March 31,
    (In thousands, except percentage data) 2022   2021   2021   2021   2021 
    Final funded loans guaranteed portion sold, SBA$14,355  $14,131  $14,894  $17,969  $29,883 
              
    Gross gain on sales of loans, SBA$1,670  $1,841  $2,134  $2,551  $3,858 
    Weighted average gross gain on sales of loans, SBA 11.63%  13.03%  14.33%  14.20%  12.91%
              
    Net gain on sales of loans, SBA (11)$1,327  $1,636  $1,912  $2,322  $3,239 
    Weighted average net gain on sales of loans, SBA 9.24%  11.58%  12.84%  12.92%  10.84%
              
              
     Three Months Ended
    Mortgage Banking DataMarch 31, December 31, September 30, June 30, March 31,
    (In thousands, except percentage data) 2022   2021   2021   2021   2021 
              
    Mortgage originations for sale in the secondary market$459,434  $541,074  $579,458  $739,502  $1,344,873 
              
    Mortgage sales$478,816  $587,928  $670,107  $716,425  $1,476,198 
              
    Gross gain on sales of loans, mortgage banking (12)$10,988  $11,082  $10,796  $11,999  $41,676 
    Weighted average gross gain on sales of loans, mortgage banking 2.29%  1.88%  1.61%  1.67%  2.82%
              
    Mortgage banking income (13)$16,254  $12,744  $12,538  $14,616  $31,469 
              
    (10) Variable expenses represent incentive compensation and advertising expenses.         
              
    (11) Inclusive of gains on servicing assets, and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.  
              
    (12) Inclusive of gains on capitalized mortgage servicing rights, realized hedging gains and loan fees, and net of lender credits and other investor expenses.  
              
    (13) Inclusive of loan fees, servicing income, gains or losses on mortgage servicing rights, fair value adjustments and gains or losses on derivative instruments, and net of lender credits and other investor expenses.
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Summarized Consolidated Average Balance SheetsMarch 31, December 31, September 30, June 30, March 31,
    (In thousands) 2022   2021   2021   2021   2021 
    Interest-earning assets         
    Average balances:         
    Interest-bearing deposits with banks$36,029  $33,065  $63,217  $37,683  $48,035 
    Loans, excluding PPP 1,268,983   1,221,879   1,194,277   1,155,958   1,217,398 
    PPP loans 22,066   51,178   84,288   145,227   164,533 
    Investment securities - taxable 50,165   47,717   46,005   46,392   42,424 
    Investment securities - nontaxable 163,472   153,452   148,723   148,280   146,145 
    FRB and FHLB stock 19,021   19,258   19,258   19,258   19,294 
    Total interest-earning assets$1,559,736  $1,526,549  $1,555,768  $1,552,798  $1,637,829 
              
    Interest income (tax equivalent basis):         
    Interest-bearing deposits with banks$13  $14  $23  $14  $18 
    Loans, excluding PPP 13,745   13,424   13,279   13,017   13,033 
    PPP loans 258   595   1,219   1,347   2,031 
    Investment securities - taxable 420   405   421   447   432 
    Investment securities - nontaxable 1,571   1,509   1,482   1,496   1,487 
    FRB and FHLB stock 146   149   146   161   167 
    Total interest income (tax equivalent basis)$16,153  $16,096  $16,570  $16,482  $17,168 
              
    Weighted average yield (tax equivalent basis, annualized):         
    Interest-bearing deposits with banks 0.14%  0.17%  0.15%  0.15%  0.15%
    Loans, excluding PPP 4.33%  4.39%  4.45%  4.50%  4.28%
    PPP loans 4.68%  4.65%  5.78%  3.71%  4.94%
    Investment securities - taxable 3.35%  3.40%  3.66%  3.85%  4.07%
    Investment securities - nontaxable 3.84%  3.93%  3.99%  4.04%  4.07%
    FRB and FHLB stock 3.07%  3.09%  3.03%  3.34%  3.46%
    Total interest-earning assets 4.14%  4.22%  4.26%  4.25%  4.19%
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Summarized Consolidated Average Balance SheetsMarch 31, December 31, September 30, June 30, March 31,
    (In thousands) 2022   2021   2021   2021   2021 
    Interest-bearing liabilities         
    Average balances:         
    Interest-bearing deposits$922,137  $913,297  $935,800  $807,342  $840,556 
    Federal Home Loan Bank borrowings 280,190   264,617   255,210   272,834   293,819 
    Federal Reserve PPPLF borrowings -   -   11,937   114,453   158,354 
    Subordinated debt and other borrowings 24,592   19,870   19,853   19,836   19,786 
    Total interest-bearing liabilities$1,226,919  $1,197,784  $1,222,800  $1,214,465  $1,312,515 
              
    Interest expense:         
    Interest-bearing deposits$738  $811  $765  $723  $771 
    Federal Home Loan Bank borrowings 681   730   725   780   833 
    Federal Reserve PPPLF borrowings -   -   12   98   137 
    Subordinated debt and other borrowings 369   318   319   320   319 
    Total interest expense$1,788  $1,859  $1,821  $1,921  $2,060 
              
    Weighted average cost (annualized):         
    Interest-bearing deposits 0.32%  0.36%  0.33%  0.36%  0.37%
    Federal Home Loan Bank borrowings 0.97%  1.10%  1.14%  1.14%  1.13%
    Federal Reserve PPPLF borrowings 0.00%  0.00%  0.40%  0.34%  0.35%
    Subordinated debt and other borrowings 6.00%  6.40%  6.43%  6.45%  6.45%
    Total interest-bearing liabilities 0.58%  0.62%  0.60%  0.63%  0.63%
              
    Interest rate spread (tax equivalent basis, annualized) 3.56%  3.60%  3.66%  3.62%  3.56%
              
    Net interest margin (tax equivalent basis, annualized) 3.68%  3.73%  3.79%  3.75%  3.69%
              
    Net interest margin, excluding PPP and PPPLF (non-GAAP), (tax equivalent basis, annualized) 3.67%  3.70%  3.68%  3.78%  3.59%
              


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