• First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2024

    Source: Nasdaq GlobeNewswire / 28 Jan 2025 20:21:03   America/Chicago

    JEFFERSONVILLE, Ind., Jan. 28, 2025 (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 $6.2 million, or $0.89 per diluted share, for the quarter ended December 31, 2024, compared to net income of $920,000, or $0.13 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the Company reported net income of $4.3 million (non-GAAP measure)(1) and net income per diluted share of $0.62 (non-GAAP measure)(1) for the quarter ended December 31, 2024 compared to $920,000, or $0.13 per diluted share for the quarter ended December 31, 2023. The core banking segment reported net income of $6.4 million, or $0.91 per diluted share, for the quarter ended December 31, 2024, compared to $4.0 million, or $0.59 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the core banking segment reported net income of $4.5 million, or $0.64 per diluted share for the quarter ended December 31, 2024 (non-GAAP measure)(1) compared to $4.0 million, or $0.59 per diluted share for the quarter ended December 31, 2023.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the first fiscal quarter, which included a bulk sale of first lien home equity lines of credit and continued improvement in our net interest margin. The bulk sale is part of a strategic initiative to transition the first lien home equity line of credit business to an originate for sale model during fiscal 2025 in order to enhance noninterest income, moderate the loan to deposit ratio, decrease reliance on noncore funding, and generate capital. The surplus capital generated from the bulk sale and potential future flow sales may be used to retire high-cost subordinated debt and repurchase Company common shares. We are optimistic regarding the remainder of fiscal 2025 as we continue to focus on asset quality, select loan growth opportunities, and capital and liquidity management. We’ll continue to evaluate options and strategies that we believe will maximize shareholder value.”

    (1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.

    Results of Operations for the Three Months Ended December 31, 2024 and 2023

    Net interest income increased $1.3 million, or 9.6%, to $15.5 million for the three months ended December 31, 2024 as compared to the same period in 2023. The tax equivalent net interest margin for the three months ended December 31, 2024 was 2.75% as compared to 2.69% for the same period in 2023. The increase in net interest income was due to a $3.8 million increase in interest income, partially offset by a $2.4 million increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

    The Company recognized a reversal of provision for credit losses for loans and securities of $490,000 and $7,000, respectively, and a provision for unfunded lending commitments of $46,000 for the three months ended December 31, 2024, compared to a provision for credit losses for loans of $470,000 and reversal of provision for unfunded lending commitments of $58,000 for the same period in 2023. The reversal of provisions during the 2024 period was due primarily to the bulk sale of approximately $87.2 million of home equity lines of credit during the quarter ended December 31, 2024, which resulted in the reversals of $980,000 in allowance for credit losses for loans and $129,000 in allowance for unfunded lending commitments. The Company recognized net charge-offs totaling $119,000 for the three months ended December 31, 2024, of which $52,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $9,000 in 2023. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $374,000 from $16.9 million at September 30, 2024 to $16.6 million at December 31, 2024.

    Noninterest income increased $3.3 million for the three months ended December 31, 2024 as compared to the same period in 2023. The increase was due primarily to a $2.5 million net gain on sale of loans due to the aforementioned bulk loan sale and $403,000 in net gains on equity securities during the three months ended December 31, 2024 with no corresponding gains for 2023.

    Noninterest expense decreased $1.1 million for the three months ended December 31, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits, occupancy and equipment and professional fee expenses of $487,000, $405,000 and $385,000, respectively. These decreases were primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

    The Company recognized income tax expense of $848,000 for the three months ended December 30, 2024 as compared to income tax benefit of $476,000 for the same period in 2023. The increase is due primarily to higher taxable income in the 2024 period, due primarily to the aforementioned net gain on sale of loans. The effective tax rate for 2024 was 12.0%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2024 and 2023 periods.

    Comparison of Financial Condition at December 31, 2024 and September 30, 2024

    Total assets decreased $61.6 million, from $2.45 billion at September 30, 2024 to $2.39 billion at December 31, 2024. Net loans held for investment decreased $79.3 million during the three months ended December 31, 2024 due primarily to the $87.2 million bulk sale of residential real estate home equity line of credit loans.

    Total liabilities decreased $60.5 million due primarily to decreases in total deposits of $48.1 million, which included a decrease in brokered deposits of $72.1 million and a decrease in FHLB borrowings of $6.6 million. The decrease in brokered deposits and FHLB borrowings was due primary to repayments as a result of the aforementioned bulk loan sale. As of December 31, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.1% of total deposits and 13.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

    Total stockholders’ equity decreased $1.1 million, from $177.1 million at September 30, 2024 to $176.0 million at December 31, 2024, due primarily to a $6.6 million increase in accumulated other comprehensive loss, partially offset by an increase in retained net income of $5.2 million. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the three months ended December 31, 2024, which resulted in a decrease in the fair value of securities available for sale. At December 31, 2024 and September 30, 2024, 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 Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. 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; 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)
        
        
     Three Months Ended
    OPERATING DATA:December 31,
    (In thousands, except share and per share data) 2024   2023 
        
    Total interest income$32,449  $28,655 
    Total interest expense 16,987   14,542 
        
    Net interest income 15,462   14,113 
        
    Provision (credit) for credit losses - loans (490)  470 
    Provision (credit) for unfunded lending commitments 46   (58)
    Credit for credit losses - securities (7)  - 
        
    Total provision (credit) for credit losses (451)  412 
        
    Net interest income after provision (credit) for credit losses 15,913   13,701 
        
    Total noninterest income 6,103   2,782 
    Total noninterest expense 14,943   16,039 
        
    Income before income taxes 7,073   444 
    Income tax expense (benefit) 848   (476)
        
    Net income$6,225  $920 
        
    Net income per share, basic$0.91  $0.13 
    Weighted average shares outstanding, basic 6,851,153   6,823,948 
        
    Net income per share, diluted$0.89  $0.13 
    Weighted average shares outstanding, diluted 6,969,223   6,839,704 
        
        
    Performance ratios (annualized) 
    Return on average assets 1.02%  0.16%
    Return on average equity 14.07%  2.42%
    Return on average common stockholders' equity 14.07%  2.42%
    Net interest margin (tax equivalent basis) 2.75%  2.69%
    Efficiency ratio 69.29%  94.93%
        



         QTD
    FINANCIAL CONDITION DATA:December 31,
    		 September 30,
    		 Increase
    (In thousands, except per share data) 2024   2024  (Decrease)
          
    Total assets$2,388,735  $2,450,368  $(61,633)
    Cash and cash equivalents 76,224   52,142   24,082 
    Investment securities 242,634   249,719   (7,085)
    Loans held for sale 24,441   25,716   (1,275)
    Gross loans 1,905,199   1,985,146   (79,947)
    Allowance for credit losses 20,685   21,294   (609)
    Interest earning assets 2,234,258   2,277,512   (43,254)
    Goodwill 9,848   9,848   - 
    Core deposit intangibles 357   398   (41)
    Loan servicing rights 2,661   2,754   (93)
    Noninterest-bearing deposits 183,239   191,528   (8,289)
    Interest-bearing deposits (retail) 1,212,527   1,180,196   32,331 
    Interest-bearing deposits (brokered) 437,008   509,157   (72,149)
    Federal Home Loan Bank borrowings 295,000   301,640   (6,640)
    Subordinated debt and other borrowings 48,642   48,603   39 
    Total liabilities 2,212,708   2,273,253   (60,545)
    Accumulated other comprehensive loss (17,789)  (11,195)  (6,594)
    Total stockholders' equity 176,027   177,115   (1,088)
          
    Book value per share$25.48  $25.72   (0.24)
    Tangible book value per share (non-GAAP) (1) 24.00   24.23   (0.23)
          
    Non-performing assets:    
    Nonaccrual loans - SBA guaranteed$4,444  $5,036  $(592)
    Nonaccrual loans 12,124   11,906   218 
    Total nonaccrual loans$16,568  $16,942  $(374)
    Accruing loans past due 90 days -   -   - 
    Total non-performing loans 16,568   16,942   (374)
    Foreclosed real estate 444   444   - 
    Total non-performing assets$17,012  $17,386  $(374)
          
    Asset quality ratios:    
    Allowance for credit losses as a percent of total gross loans 1.09%  1.07%  0.01%
    Allowance for credit losses as a percent of nonperforming loans 124.85%  125.69%  (0.84%)
    Nonperforming loans as a percent of total gross loans 0.87%  0.85%  0.02%
    Nonperforming assets as a percent of total assets 0.71%  0.71%  0.00%
          
    (1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.



    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.
         
     Three Months Ended
    Net IncomeDecember 31,
    (In thousands) 2024   2023 
         
    Net income attributable to the Company (non-GAAP)$4,308  $920 
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 1,869   - 
    Plus: Reversal of provision for credit losses, loans, net of tax effect 735   - 
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 97   - 
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 302    
    Less: Adjustments to sick pay contingent liability, net of tax effect (296)   
    Less: Compensation expense associated with loan sale, net of tax effect (790)   
    Net income attributable to the Company (GAAP)$6,225  $920 
         
    Net Income per Share, Diluted  
         
    Net income per share attributable to the Company, diluted (non-GAAP)$0.62  $0.13 
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 0.26   - 
    Plus: Reversal of provision for credit losses, loans, net of tax effect 0.11   - 
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 0.01   - 
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 0.04    
    Less: Adjustments to sick pay contingent liability, net of tax effect (0.04)   
    Less: Compensation expense associated with loan sale, net of tax effect (0.11)   
    Net income per share, diluted (GAAP)$0.89  $0.13 
         
    Core Bank Segment Net Income  
    (In thousands)   
         
    Net income attributable to the Core Bank (non-GAAP)$4,452  $4,048 
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 1,869   - 
    Plus: Reversal of provision for credit losses, loans, net of tax effect 735   - 
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 97   - 
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 302   - 
    Less: Adjustments to sick pay contingent liability, net of tax effect (296)  - 
    Less: Compensation expense associated with loan sale, net of tax effect (790)  - 
    Net income attributable to the Core Bank (GAAP)$6,369  $4,048 
         
    Core Bank Segment Net Income per Share, Diluted
         
    Core Bank net income per share, diluted (non-GAAP)$0.64  $0.59 
    Plus: Gain on sale of loans, home equity lines of credit, net of tax effect 0.26   - 
    Plus: Reversal of provision for credit losses, loans, net of tax effect 0.11   - 
    Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect 0.01   - 
    Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect 0.04   - 
    Less: Adjustments to sick pay contingent liability, net of tax effect (0.04)  - 
    Less: Compensation expense associated with loan sale, net of tax effect (0.11)  - 
    Core Bank net income per share, diluted (GAAP)$0.91  $0.59 
         



          
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):Three Months Ended  
    Efficiency Ratio 2024   
    (In thousands) 2024   2023   
          
    Net interest income (GAAP)$15,462  $14,113   
          
    Noninterest income (GAAP) 6,103   2,782   
          
    Noninterest expense (GAAP) 14,943   16,039   
          
    Efficiency ratio (GAAP) 69.29%  94.93%  
          
    Noninterest income (GAAP)$6,103  $2,782   
    Less: Gain on sale of loans, home equity lines of credit (2,492)  -   
    Less: Gain on sale of equity securities (Visa Class B-2 shares) (403)  -   
    Noninterest income (Non-GAAP) 3,208   2,782   
          
    Noninterest expense (GAAP)$14,943  $16,039   
    Less: Adjustments to sick pay contingent liability (395)  -   
    Less: Compensation expense associated with loan sale (1,053)  -   
    Noninterest expense (Non-GAAP)$13,495  $16,039   
          
    Efficiency ratio (excluding nonrecurring items) (non-GAAP) 72.28%  94.93%  
          
    Tangible Book Value Per ShareDecember 31,
    		 September 30,
    		 Increase
    (In thousands, except share and per share data) 2024   2024  (Decrease)
          
    Stockholders' equity (GAAP)$176,027  $177,115  $(1,088)
    Less: goodwill and core deposit intangibles (10,205)  (10,246)  41 
    Tangible stockholders' equity (non-GAAP)$165,822  $166,869  $(1,047)
          
    Outstanding common shares 6,909,173   6,887,106  $22,067 
          
    Tangible book value per share (non-GAAP)$24.00  $24.23  $(0.23)
          
    Book value per share (GAAP)$25.48  $25.72  $(0.24)
          



    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):As of
    Summarized Consolidated Balance SheetsDecember 31,
    		 September 30,
    		 June 30,
    		 March 31, December 31,
    (In thousands, except per share data) 2024   2024   2024   2024   2023 
              
    Total cash and cash equivalents$76,224  $52,142  $42,423  $62,969  $33,366 
    Total investment securities 242,634   249,719   238,785   240,142   246,801 
    Total loans held for sale 24,441   25,716   125,859   19,108   22,866 
    Total loans, net of allowance for credit losses 1,884,514   1,963,852   1,826,980   1,882,458   1,841,953 
    Loan servicing rights 2,661   2,754   2,860   3,028   3,711 
    Total assets 2,388,735   2,450,368   2,393,491   2,364,983   2,308,092 
              
    Retail deposits$1,395,766  $1,371,724  $1,312,997  $1,239,271  $1,180,951 
    Brokered deposits 437,008   509,157   399,151   548,175   502,895 
    Total deposits 1,832,774   1,880,881   1,712,148   1,787,446   1,683,846 
    Federal Home Loan Bank borrowings 295,000   301,640   425,000   315,000   356,699 
              
    Common stock and additional paid-in capital$28,382  $27,725  $27,592  $27,475  $27,397 
    Retained earnings - substantially restricted 178,526   173,337   170,688   167,648   163,753 
    Accumulated other comprehensive loss (17,789)  (11,195)  (17,415)  (17,144)  (13,606)
    Unearned stock compensation (973)  (901)  (999)  (1,096)  (1,194)
    Less treasury stock, at cost (12,119)  (11,851)  (11,866)  (11,827)  (11,827)
    Total stockholders' equity 176,027   177,115   168,000   165,056   164,523 
              
    Outstanding common shares 6,909,173   6,887,106   6,883,656   6,883,160   6,883,160 
              
              
     Three Months Ended
    Summarized Consolidated Statements of IncomeDecember 31, September 30,
    		 June 30, March 31, December 31,
    (In thousands, except per share data) 2024   2024   2024   2024   2023 
              
    Total interest income$32,449  $32,223  $31,094  $30,016  $28,655 
    Total interest expense 16,987   17,146   16,560   15,678   14,542 
    Net interest income 15,462   15,077   14,534   14,338   14,113 
    Provision (credit) for credit losses - loans (490)  1,808   501   713   470 
    Provision (credit) for unfunded lending commitments 46   (262)  158   (259)  (58)
    Provision (credit) for credit losses - securities (7)  (86)  84   23   - 
    Total provision (credit) for credit losses (451)  1,460   743   477   412 
              
    Net interest income after provision for credit losses 15,913   13,617   13,791   13,861   13,701 
              
    Total noninterest income 6,103   2,842   3,196   3,710   2,782 
    Total noninterest expense 14,943   12,642   12,431   11,778   16,039 
    Income before income taxes 7,073   3,817   4,556   5,793   444 
    Income tax expense (benefit) 848   145   483   866   (476)
    Net income 6,225   3,672   4,073   4,927   920 
              
              
    Net income per share, basic$0.91  $0.54  $0.60  $0.72  $0.13 
    Weighted average shares outstanding, basic 6,851,153   6,832,626   6,832,452   6,832,130   6,823,948 
              
    Net income per share, diluted$0.89  $0.53  $0.60  $0.72  $0.13 
    Weighted average shares outstanding, diluted 6,969,223   6,894,532   6,842,336   6,859,611   6,839,704 
              



    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Noninterest Income DetailDecember 31, September 30,
    		 June 30, March 31, December 31,
    (In thousands) 2024   2024   2024   2024   2023 
              
    Service charges on deposit accounts$567  $552  $538  $387  $473 
    ATM and interchange fees 665   642   593   585   449 
    Net unrealized gain on equity securities 78   28   419   6   38 
    Net gain on equity securities 403   -   -   -   - 
    Net gain on sales of loans, Small Business Administration 711   647   581   951   834 
    Net gain on sales of loans, home equity lines of credit 2,492   -   -   -   - 
    Mortgage banking income 78   6   49   53   89 
    Increase in cash surrender value of life insurance 361   363   353   333   329 
    Gain on life insurance 108   -   -   -   - 
    Commission income 210   294   220   220   222 
    Real estate lease income 121   122   154   115   115 
    Net gain (loss) on premises and equipment 45   (4)  -   120   - 
    Other income 264   192   289   940   233 
    Total noninterest income$6,103  $2,842  $3,196  $3,710  $2,782 
              
              
     Three Months Ended
     December 31, September 30,
    		 June 30, March 31, December 31,
    Consolidated Performance Ratios (Annualized) 2024   2024   2024   2024   2023 
              
    Return on average assets 1.02%  0.61%  0.69%  0.92%  0.16%
    Return on average equity 14.07%  8.52%  9.86%  13.06%  2.42%
    Return on average common stockholders' equity 14.07%  8.52%  9.86%  13.06%  2.42%
    Net interest margin (tax equivalent basis) 2.75%  2.72%  2.67%  2.66%  2.69%
    Efficiency ratio 69.29%  70.55%  70.11%  65.26%  94.93%
              
              
     As of or for the Three Months Ended
     December 31, September 30,
    		 June 30, March 31, December 31,
    Consolidated Asset Quality Ratios 2024   2024   2024   2024   2023 
              
    Nonperforming loans as a percentage of total loans 0.87%  0.85%  0.91%  0.82%  0.83%
    Nonperforming assets as a percentage of total assets 0.71%  0.71%  0.72%  0.68%  0.69%
    Allowance for credit losses as a percentage of total loans 1.09%  1.07%  1.07%  1.02%  1.01%
    Allowance for credit losses as a percentage of nonperforming loans 124.85%  125.69%  118.12%  124.01%  121.16%
    Net charge-offs to average outstanding loans 0.01%  0.02%  0.01%  0.01%  0.00%
              



    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Segmented Statements of Income InformationDecember 31, September 30,
    		 June 30, March 31, December 31,
    (In thousands) 2024   2024   2024   2024   2023 
              
    Core Banking Segment:       
    Net interest income$13,756  $14,083  $13,590  $13,469  $13,113 
    Provision (credit) for credit losses - loans (745)  1,339   320   909   (49)
    Provision (credit) for unfunded lending commitments (75)  78   64   (259)  - 
    Provision (credit) for credit losses - securities (7)  (86)  84   23   - 
    Net interest income after provision for credit losses 14,583   12,752   13,122   12,796   13,162 
    Noninterest income 5,253   2,042   2,474   2,537   1,679 
    Noninterest expense 12,574   10,400   10,192   10,093   10,252 
    Income before income taxes 7,262   4,394   5,404   5,240   4,589 
    Income tax expense 893   301   689   729   541 
    Net income$6,369  $4,093  $4,715  $4,511  $4,048 
              
    SBA Lending Segment (Q2):       
    Net interest income$1,706  $994  $944  $869  $1,003 
    Provision (credit) for credit losses - loans 255   469   181   (196)  461 
    Provision (credit) for unfunded lending commitments 121   (340)  94   -   - 
    Net interest income after provision for credit losses 1,330   865   669   1,065   542 
    Noninterest income 850   800   722   1,173   1,003 
    Noninterest expense 2,369   2,242   2,239   1,685   2,146 
    Income (loss) before income taxes (189)  (577)  (848)  553   (601)
    Income tax expense (benefit) (45)  (156)  (206)  137   (131)
    Net income (loss)$(144) $(421) $(642) $416  $(470)
              
    Mortgage Banking Segment: (2)       
    Net interest income (loss)$-  $-  $-  $-  $(3)
    Provision for credit losses - loans -   -   -   -   - 
    Provision for unfunded lending commitments -   -   -   -   - 
    Net interest income (loss) after provision for credit losses -   -   -   -   (3)
    Noninterest income -   -   -   -   100 
    Noninterest expense -   -   -   -   3,641 
    Loss before income taxes -   -   -   -   (3,544)
    Income tax benefit -   -   -   -   (886)
    Net loss$-  $-  $-  $-  $(2,658)
              
    (2) National mortgage banking operations were ceased in the quarter ended December 31, 2023 and subsequent immaterial mortgage lending activity is reported within the Core Banking segment.



    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Segmented Statements of Income InformationDecember 31, September 30,
    		 June 30, March 31, December 31,
    (In thousands, except percentage data) 2024   2024   2024   2024   2023 
              
    Net Income (Loss) Per Share by Segment      
    Net income per share, basic - Core Banking$0.93  $0.60  $0.69  $0.66  $0.59 
    Net income (loss) per share, basic - SBA Lending (Q2) (0.02)  (0.06)  (0.09)  0.06   (0.07)
    Net loss per share, basic - Mortgage Banking 0.00   0.00   0.00   0.00   (0.40)
    Total net income (loss) per share, basic$0.91  $0.54  $0.60  $0.72  $0.12 
              
    Net Income (Loss) Per Diluted Share by Segment     
    Net income per share, diluted - Core Banking$0.91  $0.59  $0.69  $0.66  $0.59 
    Net income (loss) per share, diluted - SBA Lending (Q2) (0.02)  (0.06)  (0.09)  0.06   (0.07)
    Net loss per share, diluted - Mortgage Banking 0.00   0.00   0.00   0.00   (0.40)
    Total net income (loss) per share, diluted$0.89  $0.53  $0.60  $0.72  $0.12 
              
    Return on Average Assets by Segment (annualized) (3)     
    Core Banking 1.09%  0.71%  0.83%  0.80%  0.73%
    SBA Lending (0.55%)  (1.71%)  (2.91%)  1.81%  (2.11%)
              
    Efficiency Ratio by Segment (annualized) (3)      
    Core Banking 66.15%  64.50%  63.45%  63.06%  69.31%
    SBA Lending 92.68%  124.97%  134.39%  82.52%  106.98%
              
              
     Three Months Ended
    Noninterest Expense Detail by SegmentDecember 31, September 30,
    		 June 30, March 31, December 31,
    (In thousands) 2024   2024   2024   2024   2023 
              
    Core Banking Segment:       
    Compensation$7,245  $5,400  $5,587  $5,656  $5,691 
    Occupancy 1,577   1,554   1,573   1,615   1,481 
    Advertising 338   399   253   205   189 
    Other 3,414   3,047   2,779   2,617   2,891 
    Total Noninterest Expense$12,574  $10,400  $10,192  $10,093  $10,252 
              
    SBA Lending Segment (Q2):       
    Compensation$1,931  $1,854  $1,893  $1,933  $1,826 
    Occupancy 59   55   51   58   91 
    Advertising 14   17   12   7   10 
    Other 365   316   283   (313)  219 
    Total Noninterest Expense$2,369  $2,242  $2,239  $1,685  $2,146 
              
    Mortgage Banking Segment: (2)       
    Compensation$-  $-  $-  $-  $2,146 
    Occupancy -   -   -   -   469 
    Advertising -   -   -   -   119 
    Other -   -   -   -   907 
    Total Noninterest Expense$-  $-  $-  $-  $3,641 
              
    (3) Ratios for Mortgage Banking Segment are not considered meaningful due to cessation of national mortgage banking operations in the quarter ended December 31, 2023.
              



    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):  
     Three Months Ended
    SBA Lending (Q2) DataDecember 31,
    		 September 30, June 30,
    		 March 31,  December 31,
    (In thousands, except percentage data)2024
    		 2024  2024
    		 2024
    		 2023
                   
    Final funded loans guaranteed portion sold, SBA$ 10,785  $ 10,880  $ 7,515  $ 15,144  $ 14,098 
                   
    Gross gain on sales of loans, SBA$ 1,141  $ 1,029  $ 811  $ 1,443  $ 1,303 
    Weighted average gross gain on sales of loans, SBA10.58% 9.46% 10.79% 9.53% 9.24%
                   
    Net gain on sales of loans, SBA (4)$ 711  $ 647  $ 581  $ 951  $ 834 
    Weighted average net gain on sales of loans, SBA6.59%  5.95%  7.73%  6.28%  5.92%
                   
                   
    (4) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.



    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Summarized Consolidated Average Balance SheetsDecember 31, September 30,
    		 June 30, March 31, December 31,
    (In thousands) 2024   2024   2024   2024   2023 
    Interest-earning assets        
    Average balances:        
    Interest-bearing deposits with banks$21,102  $16,841  $26,100  $24,587  $20,350 
    Loans 2,010,082   1,988,997   1,943,716   1,914,609   1,857,654 
    Investment securities - taxable 101,960   99,834   101,350   102,699   103,728 
    Investment securities - nontaxable 160,929   158,917   157,991   157,960   159,907 
    FRB and FHLB stock 24,986   24,986   24,986   24,986   24,968 
    Total interest-earning assets$2,319,059  $2,289,575  $2,254,143  $2,224,841  $2,166,607 
              
    Interest income (tax equivalent basis):      
    Interest-bearing deposits with banks$210  $209  $324  $261  $249 
    Loans 29,617   29,450   28,155   27,133   26,155 
    Investment securities - taxable 914   910   918   923   942 
    Investment securities - nontaxable 1,715   1,685   1,665   1,662   1,687 
    FRB and FHLB stock 493   471   519   499   74 
    Total interest income (tax equivalent basis)$32,949  $32,725  $31,581  $30,478  $29,107 
              
    Weighted average yield (tax equivalent basis, annualized):     
    Interest-bearing deposits with banks 3.98%  4.96%  4.97%  4.25%  4.89%
    Loans 5.89%  5.92%  5.79%  5.67%  5.63%
    Investment securities - taxable 3.59%  3.65%  3.62%  3.59%  3.63%
    Investment securities - nontaxable 4.26%  4.24%  4.22%  4.21%  4.22%
    FRB and FHLB stock 7.89%  7.54%  8.31%  7.99%  1.19%
    Total interest-earning assets 5.68%  5.72%  5.60%  5.48%  5.37%
              
    Interest-bearing liabilities       
    Interest-bearing deposits$1,671,156  $1,563,258  $1,572,871  $1,549,012  $1,389,384 
    Federal Home Loan Bank borrowings 315,583   378,956   351,227   333,275   440,786 
    Subordinated debt and other borrowings 48,616   48,576   48,537   48,497   48,458 
    Total interest-bearing liabilities$2,035,355  $1,990,790  $1,972,635  $1,930,784  $1,878,628 
              
    Interest expense:        
    Interest-bearing deposits$13,606  $12,825  $12,740  $12,546  $9,989 
    Federal Home Loan Bank borrowings 2,617   3,521   3,021   2,298   3,769 
    Subordinated debt and other borrowings 764   800   799   833   784 
    Total interest expense$16,987  $17,146  $16,560  $15,677  $14,542 
              
    Weighted average cost (annualized):      
    Interest-bearing deposits 3.26%  3.28%  3.24%  3.24%  2.88%
    Federal Home Loan Bank borrowings 3.32%  3.72%  3.44%  2.76%  3.42%
    Subordinated debt and other borrowings 6.29%  6.59%  6.58%  6.87%  6.47%
    Total interest-bearing liabilities 3.34%  3.45%  3.36%  3.25%  3.10%
              
    Net interest income (taxable equivalent basis)$15,962  $15,579  $15,021  $14,801  $14,565 
    Less: taxable equivalent adjustment (500)  (502)  (487)  (463)  (452)
    Net interest income$15,462  $15,077  $14,534  $14,338  $14,113 
              
    Interest rate spread (tax equivalent basis, annualized) 2.34%  2.27%  2.24%  2.23%  2.27%
              
    Net interest margin (tax equivalent basis, annualized) 2.75%  2.72%  2.67%  2.66%  2.69%



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