• First Savings Financial Group, Inc. Reports Financial Results For The Fiscal Year Ended September 30, 2021

    来源: Nasdaq GlobeNewswire / 28 10月 2021 18:35:01   America/Chicago

    JEFFERSONVILLE, Ind., Oct. 28, 2021 (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 $29.6 million, or $4.12 per diluted share, for the year ended September 30, 2021 compared to net income of $33.4 million, or $4.68 per diluted share, for the year ended September 30, 2020.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated: “We are very pleased in delivering another fiscal year of outstanding performance to our shareholders. In addition to achieving the second highest year of recorded net income and substantially growing the balance sheet, excluding forgiveness of PPP loans, we believe that we have positioned the Company for continued growth and profitability. We are encouraged by the strong performance of the core banking and SBA lending segments, plus perceive opportunity for enhanced growth and profitability of the mortgage banking segment in fiscal 2022. I’m optimistic that each of these business lines will continue to thrive and deliver exceptional value to our shareholders.”

    Results of Operations for the Fiscal Years Ended September 30, 2021 and 2020

    Net interest income increased $10.0 million, or 21.2%, to $57.2 million for the year ended September 30, 2021 as compared to 2020. The increase in net interest income was due to a $7.6 million increase in interest income and a $2.5 million decrease in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $230.2 million, from $1.36 billion for 2020 to $1.59 billion for 2021, partially offset by a decrease in the weighted-average tax-equivalent yield, from 4.33% for 2020 to 4.18% for 2021. The decrease in the weighted-average tax-equivalent yield for 2021 was due primarily to declining market interest rates for loans and investment securities. This decline was partially offset by an increase in the yield on PPP loans from 2.29% for 2020 to 3.97% for 2021, which was due to accelerated recognition of deferred PPP loan fees related to forgiveness payoffs during the year ended September 30, 2021 as compared to 2020. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 0.96% for 2020 to 0.64% for 2021, partially offset by an increase in the average balance of interest-bearing liabilities of $162.9 million, from $1.10 billion for 2020 to $1.27 billion for 2021. The decrease in the average cost of interest-bearing liabilities for 2021 was due primarily to decreasing market interest rates on deposits and Federal Home Loan Bank (“FHLB”) borrowings.

    The Company recognized a credit for loan losses of $1.8 million for the year ended September 30, 2021 compared to a provision of $8.0 million for 2020. The credit for loan losses for the year ended September 30, 2021 was primarily the result of decreases in certain segments of the loan portfolio as well as reductions of certain qualitative risk factors within the allowance for loan losses calculation related to the COVID-19 pandemic. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $1.9 million, from $13.6 million at September 30, 2020 to $15.5 million at September 30, 2021. The Company recognized net charge-offs of $958,000 for the year ended September 30, 2021, of which $894,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $975,000, of which $679,000 was related to unguaranteed portions of SBA loans, for the year ended September 30, 2020.

    Noninterest income decreased $12.9 million for the year ended September 30, 2021 as compared to 2020, due primarily to a decrease in mortgage banking income of $16.2 million, which was partially offset by a $3.1 million increase in net gain on sales of SBA loans. The decrease in mortgage banking income was due to decreased loan originations and sales by the mortgage banking segment, as well as margin compression in the residential mortgage loan secondary market. The increase in net gain on sales of SBA loans was due primarily to increases in production and sales volume from the SBA lending segment, as well as higher premiums in the secondary market. Additional details regarding the financial performance of the mortgage banking and SBA lending segments are included in the “Segmented Statements of Income Information” table at the end of this release.

    Noninterest expense increased $13.6 million for the year ended September 30, 2021 as compared to 2020. The increase was due primarily to an increase in compensation and benefits of $10.0 million and an increase in professional fees of $2.0 million. The increase in compensation and benefits expense is attributable to the addition of new employees primarily to support the growth of the Company’s mortgage banking, core banking and SBA lending activities, routine salary and benefits adjustments, and increased incentive compensation as a result of the Company’s performance.

    The Company recognized income tax expense of $10.0 million for the year ended September 30, 2021 compared to income tax expense of $12.7 million for 2020. The decrease is primarily the result of lower pretax income in 2021. The effective tax rate for 2021 was 25.0% compared to 27.1% for 2020. The lower effective tax rate for 2021 was due to lower nondeductible executive compensation expense in 2021 as compared to 2020.

    Results of Operations for the Three Months Ended September 30, 2021 and 2020

    The Company reported net income of $4.8 million, or $0.67 per diluted share, for the three months ended September 30, 2021 compared to net income of $15.1 million, or $2.13 per diluted share, for the three months ended September 30, 2020.

    Net interest income increased $996,000, or 7.4%, to $14.4 million for the three months ended September 30, 2021 as compared to the same period in 2020. The increase in net interest income was due to a $478,000 increase in interest income and a $518,000 decrease in interest expense. Interest income increased due to an increase in the weighted-average tax-equivalent yield, from 3.98% for 2020 to 4.26% for 2021, partially offset by a decrease in the average balance of interest-earning assets of $62.5 million, from $1.62 billion for 2020 to $1.56 billion for 2021. The increase in the weighted-average tax-equivalent yield for 2021 is due primarily to an increase in the yield on PPP loans from 2.26% for 2020 to 5.78% for 2021. The increase in the yield on PPP loans was due to accelerated recognition of deferred PPP loan fees related to forgiveness payoffs during the quarter ended September 30, 2021. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 0.70% for 2020 to 0.60% for 2021, and a decrease in the average balance of interest-bearing liabilities of $107.1 million, from $1.33 billion for 2020 to $1.22 billion for 2021. The decrease in the average cost of interest-bearing liabilities for 2021 was due primarily to decreasing market interest rates on deposits and FHLB borrowings.

    The Company recognized a provision for loan losses of $8,000 for the three months ended September 30, 2021 compared to a provision of $2.8 million for the same period in 2020. The Company recognized net charge-offs of $349,000 for the three months ended September 30, 2021, of which $328,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $385,000 for the same period in 2020, of which $326,000 was related to unguaranteed portions of SBA loans.

    Noninterest income decreased $40.5 million for the three months ended September 30, 2021 as compared to the same period in 2020. The decrease was due primarily to a decrease in mortgage banking income of $39.9 million. The decrease in mortgage banking income was due to decreased loan originations and sales by the mortgage banking segment, as well as margin compression in the residential mortgage loan secondary market.

    Noninterest expense decreased $19.3 million for the three months ended September 30, 2021 as compared to the same period in 2020. The decrease was due primarily to decreases in compensation and benefits, other operating expense and advertising expense of $15.0 million, $2.0 million and $1.4 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 decreases in other operating expense and advertising expense were primarily due to the reduced volume from the mortgage banking segment.

    The Company recognized income tax expense of $958,000 for the three months ended September 30, 2021 compared to $7.3 million for the same period in 2020. The decrease was primarily the result of lower pretax income in 2021. The effective tax rate for 2021 was 16.5% as compared to 31.2% for 2020. The lower effective tax rate for 2021 was due to lower nondeductible executive compensation expense in 2021 as compared to 2020.

    Comparison of Financial Condition at September 30, 2021 and September 30, 2020

    Total assets decreased $44.1 million, from $1.76 billion at September 30, 2020 to $1.72 billion at September 30, 2021. Residential mortgage loans held for sale decreased by $95.6 million due to loan sales outpacing originations during the year and single tenant net lease loans held for sale increased by $23.0 million due to a transfer from held-for-investment to held-for-sale during the year. Net loans decreased $14.1 million during the year ended September 30, 2021, due primarily to a $123.9 million decrease in PPP loans, partially offset by growth in the single tenant net lease commercial real estate and residential mortgage loans. Excluding the decrease in PPP loans and transfers of single tenant net lease loans to held-for-sale, net loans increased $132.8 million, or 12.2%. Residential mortgage loan servicing rights increased $27.9 million, or 128.6%, to $49.6 million at September 30, 2021 as the Company continues to increase its loan servicing portfolio.

    Total liabilities decreased $66.9 million due primarily to decreases of $174.8 million and $60.9 million in PPPLF and FHLB borrowings, respectively, partially offset by a $179.5 million increase in total deposits.

    Common stockholders’ equity increased $23.1 million, from $157.3 million at September 30, 2020 to $180.4 million at September 30, 2021, due primarily to retained net income of $27.0 million, partially offset by decreases in net unrealized gains on available for sale securities included in accumulated other comprehensive income of $2.3 million and additional paid in capital of $1.8 million, which was due to the acquisition of the minority interests in Q2 Business Capital, LLC on December 31, 2020. At September 30, 2021 and September 30, 2020, 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 Years Ended
     September 30, September 30,
    OPERATING DATA: 2021   2020   2021   2020 
    (In thousands, except share and per share data)       
            
    Total interest income$16,243  $15,765  $65,259  $57,699 
    Total interest expense 1,819   2,337   8,087   10,538 
            
    Net interest income 14,424   13,428   57,172   47,161 
    Provision (credit) for loan losses 8   2,772   (1,767)  7,962 
            
    Net interest income after provision (credit) for loan losses 14,416   10,656   58,939   39,199 
            
    Total noninterest income 16,495   57,024   120,436   133,351 
    Total noninterest expense 25,104   44,452   139,409   125,808 
            
    Income before income taxes 5,807   23,228   39,966   46,742 
    Income tax expense 958   7,257   9,997   12,661 
            
    Net income 4,849   15,971   29,969   34,081 
            
    Less: Net income (loss) attributable to noncontrolling interests -   834   402   727 
            
    Net income attributable to the Company$4,849  $15,137  $29,567  $33,354 
            
    Net income per share, basic$0.68  $2.13  $4.16  $4.72 
    Weighted average shares outstanding, basic 7,111,594   7,095,651   7,107,786   7,070,040 
            
    Net income per share, diluted$0.67  $2.13  $4.12  $4.68 
    Weighted average shares outstanding, diluted 7,200,357   7,112,082   7,173,733   7,127,862 
            
            
    Performance ratios (three-month data annualized)       
    Return on average assets 1.12%  3.44%  1.69%  2.27%
    Return on average equity 10.92%  43.46%  17.59%  26.06%
    Return on average common stockholders' equity 10.92%  41.08%  17.37%  25.46%
    Net interest margin (tax equivalent basis) 3.79%  3.40%  3.67%  3.55%
    Efficiency ratio 81.19%  63.10%  78.49%  69.70%
            
            
     September 30, September 30,  Increase  
    FINANCIAL CONDITION DATA: 2021   2020  (Decrease)  
    (In thousands, except per share data)       
            
    Total assets$1,720,506  $1,764,625  $(44,119)  
    Cash and cash equivalents 33,428   33,726   (298)  
    Investment securities 208,518   204,067   4,451   
    Loans held for sale 214,940   285,525   (70,585)  
    Gross loans (1) 1,090,237   1,107,089   (16,852)  
    Allowance for loan losses 14,301   17,026   (2,725)  
    Interest earning assets 1,540,111   1,620,831   (80,720)  
    Goodwill 9,848   9,848   -   
    Core deposit intangibles 988   1,202   (214)  
    Loan servicing rights 54,026   25,451   28,575   
    Noninterest-bearing deposits 291,039   242,673   48,366   
    Interest-bearing deposits (2) 936,541   805,403   131,138   
    Federal Home Loan Bank borrowings 250,000   310,858   (60,858)  
    Federal Reserve PPPLF borrowings -   174,834   (174,834)  
    Total liabilities 1,540,129   1,607,060   (66,931)  
    Stockholders' equity, net of noncontrolling interests 180,377   157,272   23,105   
            
    Book value per share$25.31  $22.07  $3.24   
    Tangible book value per share (3) 23.79   20.52   3.27   
            
    Non-performing assets:       
    Nonaccrual loans - SBA guaranteed$6,748  $3,709  $3,039   
    Nonaccrual loans - unguaranteed 8,252   9,906   (1,654)  
    Total nonaccrual loans$15,000  $13,615  $1,385   
    Accruing loans past due 90 days 472   -   472   
    Total non-performing loans 15,472   13,615   1,857   
    Troubled debt restructurings classified as performing loans 1,743   3,069   (1,326)  
    Total non-performing assets$17,215  $16,684  $531   
            
    Asset quality ratios:       
    Allowance for loan losses as a percent of total gross loans 1.31%  1.54%  (0.23%)  
    Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4) 1.38%  1.84%  (0.45%)  
    Allowance for loan losses as a percent of nonperforming loans 92.43%  125.05%  (32.62%)  
    Nonperforming loans as a percent of total gross loans 1.42%  1.23%  0.19%  
    Nonperforming assets as a percent of total assets 1.00%  0.95%  0.06%  
            

    _______________
    (1) Includes $56.7 million and $180.6 million of PPP loans at September 30, 2021 and September 30, 2020, respectively.

    (2) Includes $100.1 million and $132.1 million of brokered certificates of deposit at September 30, 2021 and September 30, 2020, 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.

     September 30, September 30,  Increase    
    Tangible Book Value Per Share 2021   2020  (Decrease)    
    (In thousands, except share and per share data)         
              
    Stockholders' equity, net of noncontrolling interests (GAAP)$180,377  $157,272  $23,105     
    Less: goodwill and core deposit intangibles (10,836)  (11,050)  214     
    Tangible equity (non-GAAP)$169,541  $146,222  $109,789     
              
    Outstanding common shares 7,125,888   7,125,972   (84)    
              
    Tangible book value per share (non-GAAP)$23.79  $20.52  $3.27     
              
    Book value per share (GAAP)$25.31  $22.07  $3.24     
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): As of
    Summarized Consolidated Balance SheetsSeptember 30, June 30, March 31, December 31, September 30,
    (In thousands, except per share data) 2021   2021   2021   2020   2020 
    Total cash and cash equivalents$33,428  $22,909  $30,837  $35,392  $33,726 
    Total investment securities 208,518   209,551   207,331   205,661   204,067 
    Total loans held for sale 214,940   277,374   207,141   357,242   285,525 
    Total loans, net of allowance for loan losses 1,075,936   1,065,852   1,128,348   1,114,708   1,090,063 
    PPP loans 56,656   100,573   159,320   178,499   180,561 
    Loan servicing rights 54,026   51,778   49,367   35,232   25,451 
    Total assets 1,720,506   1,758,628   1,750,609   1,872,911   1,764,625 
              
    Total deposits$1,227,580  $1,127,155  $1,095,496  $1,121,320  $1,048,076 
    Federal Home Loan Bank borrowings 250,000   283,289   289,237   340,092   310,858 
    Federal Reserve PPPLF borrowings -   107,829   128,494   172,772   174,834 
              
    Stockholders' equity, net of noncontrolling interests$180,377  $177,735  $173,040  $165,745  $157,272 
    Noncontrolling interests in subsidiary -   -   -   -   293 
    Total equity 180,377   177,735   173,040   165,745   157,565 
              
    Outstanding common shares 7,125,888   7,124,388   7,125,081   7,124,781   7,125,972 
              
      Three Months Ended
    Summarized Consolidated Statements of IncomeSeptember 30, June 30, March 31, December 31, September 30,
    (In thousands, except per share data) 2021   2021   2021   2020   2020 
    Total interest income$16,243  $16,150  $16,840  $16,026  $15,765 
    Total interest expense 1,819   1,921   2,060   2,287   2,337 
    Net interest income 14,424   14,229   14,780   13,739   13,428 
    Provision (credit) for loan losses 8   (2,730)  287   668   2,772 
    Net interest income after provision for loan losses 14,416   16,959   14,493   13,071   10,656 
              
    Total noninterest income 16,495   18,785   38,973   46,183   57,024 
    Total noninterest expense 25,104   30,619   39,284   44,402   44,452 
    Income before income taxes 5,807   5,125   14,182   14,852   23,228 
    Income tax expense 958   817   3,695   4,527   7,257 
    Net income 4,849   4,308   10,487   10,325   15,971 
    Less: net income attributable to noncontrolling interests -   -   -   402   834 
    Net income attributable to the Company$4,849  $4,308  $10,487  $9,923  $15,137 
              
              
    Net income per share, basic$0.68  $0.61  $1.48  $1.40  $2.13 
    Weighted average shares outstanding, basic 7,111,594   7,109,481   7,108,926   7,101,183   7,095,651 
              
    Net income per share, diluted$0.67  $0.60  $1.46  $1.39  $2.13 
    Weighted average shares outstanding, diluted 7,200,357   7,178,943   7,164,189   7,154,106   7,112,082 
              
      Three Months Ended
     September 30, June 30, March 31, December 31, September 30,
    Consolidated Performance Ratios (Annualized) 2021   2021   2021   2020   2020 
    Return on average assets 1.12%  1.00%  2.34%  2.23%  3.44%
    Return on average equity 10.92%  9.94%  24.97%  25.43%  43.46%
    Return on average common stockholders' equity 10.92%  9.94%  24.97%  24.52%  41.08%
    Net interest margin (tax equivalent basis) 3.79%  3.75%  3.69%  3.46%  3.40%
    Efficiency ratio 81.19%  92.75%  73.08%  74.10%  63.10%
              
              
      As of or for the Three Months Ended
     September 30, June 30, March 31, December 31, September 30,
    Consolidated Asset Quality Ratios 2021   2021   2021   2020   2020 
    Nonperforming loans as a percentage of total loans 1.42%  1.15%  1.00%  1.10%  1.23%
    Nonperforming assets as a percentage of total assets 1.00%  0.81%  0.78%  0.78%  0.95%
    Allowance for loan losses as a percentage of total loans 1.31%  1.36%  1.52%  1.51%  1.54%
    Allowance for loan losses as a percentage of nonperforming loans 92.43%  117.88%  152.72%  138.02%  125.05%
    Net charge-offs to average outstanding loans 0.03%  0.00%  0.00%  0.04%  0.03%
                        


    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Segmented Statements of Income InformationSeptember 30, June 30, March 31, December 31, September 30,
    (In thousands, except per share data) 2021   2021   2021   2020   2020 
    Core Banking Segment:         
    Net interest income$11,517  $11,401  $11,114  $10,861  $10,512 
    Provision (credit) for loan losses (189)  (2,401)  106   702   2,232 
    Net interest income after provision (credit) for loan losses 11,706   13,802   11,008   10,159   8,280 
    Noninterest income 1,780   1,509   1,490   1,552   1,779 
    Noninterest expense 8,800   9,364   8,991   8,112   7,920 
    Income before income taxes 4,686   5,947   3,507   3,599   2,139 
    Income tax expense 569   792   507   570   482 
    Net income attributable to the Company$4,117  $5,155  $3,000  $3,029  $1,657 
              
    SBA Lending Segment (Q2):         
    Net interest income (5)$2,455  $2,510  $3,227  $2,147  $1,959 
    Provision (credit) for loan losses 197   (329)  181   (34)  540 
    Net interest income after provision (credit) for loan losses 2,258   2,839   3,046   2,181   1,419 
    Noninterest income 2,194   2,675   3,407   1,385   2,828 
    Noninterest expense 1,973   2,206   2,449   2,746   2,545 
    Income before income taxes 2,479   3,308   4,004   820   1,702 
    Income tax expense 612   790   1,005   105   217 
    Net income 1,867   2,518   2,999   715   1,485 
    Less: net income attributable to noncontrolling interests -   -   -   402   834 
    Net income attributable to the Company (6)$1,867  $2,518  $2,999  $313  $651 
              
    Mortgage Banking Segment:         
    Net interest income$452  $318  $439  $731  $957 
    Provision for loan losses -   -   -   -   - 
    Net interest income after provision for loan losses 452   318   439   731   957 
    Noninterest income 12,521   14,601   34,076   43,246   52,417 
    Noninterest expense 14,331   19,049   27,844   33,544   33,987 
    Income (loss) before income taxes (1,358)  (4,130)  6,671   10,433   19,387 
    Income tax expense (benefit) (223)  (765)  2,183   3,852   6,558 
    Net income (loss) attributable to the Company$(1,135) $(3,365) $4,488  $6,581  $12,829 
              
    Net Income (Loss) Per Share by Segment         
    Net income per share, basic - Core Banking$0.58  $0.73  $0.42  $0.43  $0.23 
    Net income per share, basic - SBA Lending (Q2) (7) 0.26   0.35   0.42   0.04   0.09 
    Net income (loss) per share, basic - Mortgage Banking (0.16)  (0.47)  0.64   0.93   1.81 
    Total net income per share, basic (7)$0.68  $0.61  $1.48  $1.40  $2.13 
              
    Net Income (Loss) Per Diluted Share by Segment         
    Net income per share, diluted - Core Banking$0.57  $0.72  $0.42  $0.42  $0.23 
    Net income per share, diluted - SBA Lending (Q2) (8) 0.26   0.35   0.42   0.04   0.09 
    Net income (loss) per share, diluted - Mortgage Banking (0.16)  (0.47)  0.62   0.93   1.81 
    Total net income per share, diluted (8)$0.67  $0.60  $1.46  $1.39  $2.13 
              
    (5) Includes net interest income derived from PPP loans of:$1,145  $1,220  $1,887  $928  $861 
              
    (6) Includes net income attributable to the Company derived from PPP loans (tax effected) of:$859  $915  $1,415  $810  $751 
              
    (7) Includes basic net income per share derived from PPP loans (tax effected) of:$0.12  $0.13  $0.20  $0.11  $0.11 
              
    (8) Includes diluted net income per share derived from PPP loans (tax effected) of:$0.12  $0.13  $0.20  $0.11  $0.11 
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Noninterest Expense Detail by SegmentSeptember 30, June 30, March 31, December 31, September 30,
    (In thousands) 2021   2021   2021   2020   2020 
    Core Banking Segment:         
    Compensation$5,220  $5,039  $4,895  $4,127  $4,250 
    Occupancy 1,415   1,473   1,387   1,392   1,512 
    Advertising 268   213   248   177   225 
    Other 1,897   2,639   2,461   2,416   1,933 
    Total Noninterest Expense$8,800  $9,364  $8,991  $8,112  $7,920 
              
    SBA Lending Segment (Q2):         
    Compensation$1,602  $1,697  $1,929  $2,280  $1,939 
    Occupancy 83   101   129   93   116 
    Advertising 6   3   8   10   6 
    Other 282   405   383   363   484 
    Total Noninterest Expense$1,973  $2,206  $2,449  $2,746  $2,545 
              
    Mortgage Banking Segment:         
    Compensation$11,456  $14,594  $22,657  $27,455  $27,092 
    Occupancy 723   1,012   998   1,100   1,207 
    Advertising 588   1,133   1,796   2,124   2,011 
    Other 1,564   2,310   2,393   2,865   3,677 
    Total Noninterest Expense$14,331  $19,049  $27,844  $33,544  $33,987 
              
              
      Three Months Ended
     September 30, June 30, March 31, December 31, September 30,
    Mortgage Banking Noninterest Expense Fixed vs. Variable 2021   2021   2021   2020   2020 
    (In thousands)         
    Noninterest Expense - Fixed Expenses$7,779  $9,764  $11,713  $13,296  $11,838 
    Noninterest Expense - Variable Expenses (9) 6,552   9,285   16,131   20,248   22,149 
    Total Noninterest Expense$14,331  $19,049  $27,844  $33,544  $33,987 
              
              
      Three Months Ended
    SBA Lending (Q2) DataSeptember 30, June 30, March 31, December 31, September 30,
    (In thousands, except percentage data) 2021   2021   2021   2020   2020 
    Final funded loans guaranteed portion sold, SBA$14,894  $17,969  $29,883  $14,116  $25,623 
              
    Gross gain on sales of loans, SBA$2,134  $2,551  $3,858  $1,698  $3,094 
    Weighted average gross gain on sales of loans, SBA 14.33%  14.20%  12.91%  12.03%  12.08%
              
    Net gain on sales of loans, SBA (10)$1,912  $2,322  $3,239  $1,267  $2,366 
    Weighted average net gain on sales of loans, SBA 12.84%  12.92%  10.84%  8.98%  9.23%
              
              
      Three Months Ended
    Mortgage Banking DataSeptember 30, June 30, March 31, December 31, September 30,
    (In thousands, except percentage data) 2021   2021   2021   2020   2020 
              
    Mortgage originations for sale in the secondary market$579,458  $739,502  $1,344,873  $1,430,628  $1,526,809 
              
    Mortgage sales$651,180  $716,425  $1,476,198  $1,349,044  $1,471,501 
              
    Gross gain on sales of loans, mortgage banking$15,433  $11,765  $27,606  $47,224  $53,633 
    Weighted average gross gain on sales of loans, mortgage banking 2.37%  1.64%  1.87%  3.50%  3.64%
              
    Mortgage banking income (11)$12,538  $14,616  $34,095  $43,255  $52,426 
                        

    _______________
    (9) Variable expenses include incentive compensation and advertising expenses.

    (10) Net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets.

    (11) Net of lender credits and other investor expenses, and inclusive of servicing income, loan fees, gains on mortgage servicing rights, fair value adjustments and gains (losses) on derivative instruments.

    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Summarized Consolidated Average Balance SheetsSeptember 30, June 30, March 31, December 31, September 30,
    (In thousands) 2021   2021   2021   2020   2020 
    Interest-earning assets         
    Average balances:         
    Interest-bearing deposits with banks$63,217  $37,683  $48,035  $34,412  $58,775 
    Loans, excluding PPP 1,194,277   1,155,958   1,217,398   1,205,278   1,172,547 
    PPP loans 84,288   145,227   164,533   179,316   180,561 
    Investment securities - taxable 46,005   46,392   42,424   42,462   44,026 
    Investment securities - nontaxable 148,723   148,280   146,145   146,374   145,042 
    FRB and FHLB stock 19,258   19,258   19,294   17,992   17,293 
    Total interest-earning assets$1,555,768  $1,552,798  $1,637,829  $1,625,834  $1,618,244 
              
    Interest income (tax equivalent basis):         
    Interest-bearing deposits with banks$23  $14  $18  $18  $22 
    Loans, excluding PPP 13,279   13,017   13,033   13,171   12,924 
    PPP loans 1,219   1,347   2,031   1,085   1,019 
    Investment securities - taxable 421   447   432   471   483 
    Investment securities - nontaxable 1,482   1,496   1,487   1,508   1,507 
    FRB and FHLB stock 146   161   167   108   144 
    Total interest income (tax equivalent basis)$16,570  $16,482  $17,168  $16,361  $16,099 
              
    Weighted average yield (tax equivalent basis, annualized):         
    Interest-bearing deposits with banks 0.15%  0.15%  0.15%  0.21%  0.15%
    Loans, excluding PPP 4.45%  4.50%  4.28%  4.37%  4.41%
    PPP loans 5.78%  3.71%  4.94%  2.42%  2.26%
    Investment securities - taxable 3.66%  3.85%  4.07%  4.44%  4.39%
    Investment securities - nontaxable 3.99%  4.04%  4.07%  4.12%  4.16%
    FRB and FHLB stock 3.03%  3.34%  3.46%  2.40%  3.33%
    Total interest-earning assets 4.26%  4.25%  4.19%  4.03%  3.98%
              
    Interest-bearing liabilities         
    Average balances:         
    Interest-bearing deposits$935,800  $807,342  $840,556  $811,016  $842,363 
    Federal Home Loan Bank borrowings 255,210   272,834   293,819   306,299   292,876 
    Federal Reserve PPPLF borrowings 11,937   114,453   158,354   173,701   174,835 
    Subordinated debt and other borrowings 19,853   19,836   19,786   19,803   19,786 
    Total interest-bearing liabilities$1,222,800  $1,214,465  $1,312,515  $1,310,819  $1,329,860 
              
    Interest expense:         
    Interest-bearing deposits$765  $723  $771  $936  $974 
    Federal Home Loan Bank borrowings 725   780   833   861   853 
    Federal Reserve PPPLF borrowings 12   98   137   153   154 
    Subordinated debt and other borrowings 319   320   319   337   356 
    Total interest expense$1,821  $1,921  $2,060  $2,287  $2,337 
              
    Weighted average cost (annualized):         
    Interest-bearing deposits 0.33%  0.36%  0.37%  0.46%  0.46%
    Federal Home Loan Bank borrowings 1.14%  1.14%  1.13%  1.12%  1.16%
    Federal Reserve PPPLF borrowings 0.40%  0.34%  0.35%  0.35%  0.35%
    Subordinated debt and other borrowings 6.43%  6.45%  6.45%  6.81%  7.20%
    Total interest-bearing liabilities 0.60%  0.63%  0.63%  0.70%  0.70%
              
    Interest rate spread (tax equivalent basis, annualized) 3.66%  3.62%  3.56%  3.33%  3.28%
              
    Net interest margin (tax equivalent basis, annualized) 3.79%  3.75%  3.69%  3.46%  3.40%
              
    Net interest margin, excluding PPP and PPPLF (non-GAAP), (tax equivalent basis, annualized) 3.68%  3.78%  3.59%  3.63%  3.59%
                        

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