First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2022

JEFFERSONVILLE, Ind., July 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 $2.6 million, or $0.37 per diluted share, for the quarter ended June 30, 2022 compared to net income of $4.3 million, or $0.60 per diluted share, for the quarter ended June 30, 2021.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are very pleased to have reached the $2.0 billion asset mark in this quarter, plus with the performance of the core banking segment, including enhanced profitability, very significant loan originations and portfolio growth, increased net interest margin, improved efficiency ratio and improved asset quality ratios. While the SBA lending segment underperformed in comparison to prior quarters, it was not unexpected and we have rebuilt the lending team and pipeline for enhanced performance in the fourth fiscal quarter and thereafter. We also recognize the headwinds for the mortgage banking segment and continue to right-size expenses in relation to decreasing origination volumes and margin. We are also pleased to report 59,120 shares of the Company’s common shares were repurchased during the quarter, which was slightly less than 1.0% of outstanding shares, as a part of the previously announced 5% share repurchase program. 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 challenges of 2022 and opportunities in 2023 and years thereafter. I believe we are poised to thrive and continue to deliver exceptional value to our shareholders.”

Results of Operations for the Three Months Ended June 30, 2022 and 2021

Net interest income increased $1.7 million, or 11.8%, to $15.9 million for the three months ended June 30, 2022 as compared to the same period in 2021. The increase in net interest income was due to a $2.3 million increase in interest income, partially offset by a $647,000 increase in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $182.7 million, from $1.55 billion for 2021 to $1.74 billion for 2022, and an increase in the weighted-average tax-equivalent yield, from 4.25% for 2021 to 4.36% for 2022. The increase in the average balance of interest-earning assets was due to increases in the average balance of investment securities and total loans of $111.4 million and $84.4 million, respectively. When excluding the impact from PPP loan payoffs, the increase in the average balance of loans was $225.4 million when comparing the two periods. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $160.0 million, from $1.21 billion for 2021 to $1.37 billion for 2022, and an increase in the average cost of interest-bearing liabilities, from 0.63% for 2021 to 0.75% for 2022. The increase in the average cost of interest-bearing liabilities for 2022 was due primarily to higher rates paid for brokered deposits during the period.

The Company recognized a provision for loan losses of $532,000 for the three months ended June 30, 2022, due to loan portfolio growth, compared to a credit of $2.7 million for the same period in 2021. The increase in the provision for loan losses for 2022 is primarily due to loan growth during the quarter ended June 30, 2022. The Company recognized net charge-offs of $27,000 for the three months ended June 30, 2022 compared to net charge-offs of $47,000 for the same period in 2021.

Noninterest income decreased $8.8 million for the three months ended June 30, 2022 as compared to the same period in 2021. The decrease was due primarily to decreases in mortgage banking income and net gain on sale of SBA loans of $7.3 million and $1.8 million, respectively. The decrease in mortgage banking income was primarily due to a $16.6 million decrease in production revenue from lower originations for sale and a $2.5 million decrease in capitalized residential mortgage loan servicing rights, partially offset by $6.1 million in realized and unrealized hedging gains in 2022 compared to $6.3 million in realized and unrealized hedging losses in 2021. Mortgage loans originated for sale were $421.4 million in the three months ended June 30, 2022 as compared to $739.5 million in the same period in 2021. The decrease in net gain on sales of SBA loans was due primarily to decreases in production and sales volume from the SBA lending segment, as well as lower premiums in the secondary market.

Noninterest expense decreased $7.8 million for the three months ended June 30, 2022 as compared to the same period in 2021. The decrease was due primarily to a decrease in compensation and benefits of $6.1 million. 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 Company recognized an income tax benefit of $61,000 for the three months ended June 30, 2022 compared to tax expense of $817,000 for the same period in 2021. The tax benefit for 2022 was primarily the result of the Company’s utilization of capital loss carryovers during the period and the purchase of additional tax-exempt municipal bonds during the period.

Results of Operations for the Nine Months Ended June 30, 2022 and 2021

The Company reported net income of $14.0 million, or $1.95 per diluted share, for the nine months ended June 30, 2022 compared to net income of $24.7 million, or $3.45 per diluted share, for the nine months ended June 30, 2021.

Net interest income increased $1.1 million, or 2.5%, to $43.8 million for the nine months ended June 30, 2022 as compared to the same period in 2021. The increase in net interest income was due to a $1.0 million increase in interest income and a $53,000 decrease in interest expense. Interest income increased due to an increase in the weighted-average tax-equivalent yield, from 4.15% for 2021 to 4.25% for 2022, and a $1.7 million increase in the average balance of interest-earning assets. Interest expense decreased primarily due to a decrease in the average balance of interest-bearing liabilities of $13.0 million, from $1.28 billion for 2021 to $1.27 billion for 2022. The average cost of interest-bearing liabilities was 0.65% for both 2021 and 2022.

The Company recognized a provision for loan losses of $1.0 million for the nine months ended June 30, 2022, due to loan portfolio growth, compared to a credit of $1.8 million 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 $5.6 million from $15.5 million at September 30, 2021 to $9.9 million at June 30, 2022. The Company recognized net charge-offs of $349,000 for the nine months ended June 30, 2022, of which $218,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $609,000 for the same period in 2021, of which $565,000 was related to unguaranteed portions of SBA loans.

Noninterest income decreased $57.2 million for the nine months ended June 30, 2022 as compared to the same period in 2021. The decrease was due primarily to a decrease in mortgage banking income and gain on sale of SBA loans of $55.4 million and $3.4 million, respectively. The decrease in mortgage banking income was primarily due to a $73.9 million decrease in production revenue from lower originations for sale and a $22.1 million decrease in capitalized residential mortgage loan servicing rights, partially offset by a $13.8 million increase in realized and unrealized hedging gains, a $3.1 million decrease in the fair value of loans held for sale and interest rate lock commitments as compared to a $15.6 million decrease in fair value recognized in 2021, and a $4.7 million increase in the fair value of the residential mortgage loan servicing rights portfolio in 2022 as compared to a $7.0 million decrease in fair value recognized in 2021. Mortgage loans originated for sale were $1.42 billion in the nine months ended June 30, 2022 as compared to $3.51 billion in the same period in 2021. The decrease in net gain on sales of SBA loans was due primarily to decreases in production and sales volume from the SBA lending segment, as well as lower premiums in the secondary market.

Noninterest expense decreased $41.2 million for the nine months ended June 30, 2022 as compared to the same period in 2021. The decrease was due primarily to decreases in compensation and benefits and advertising expense of $34.7 million and $3.1 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 $2.4 million for the nine months ended June 30, 2022 compared to $9.0 million for the same period in 2021. The effective tax rate for 2022 was 14.5% as compared to 26.5% for 2021. The lower effective tax rate for 2022 was primarily due to lower taxable income and lower nondeductible executive compensation expense in 2022 as compared to 2021.

Comparison of Financial Condition at June 30, 2022 and September 30, 2021

Total assets increased $285.3 million, from $1.72 billion at September 30, 2021 to $2.01 billion at June 30, 2022. Net loans held for investment increased $191.9 million during the nine months ended June 30, 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 $54.9 million decrease in PPP loans. Residential mortgage and SBA loans held for sale decreased $73.1 million and $4.0 million, respectively, during the nine months ended June 30, 2022 due to loan sales outpacing originations. Single tenant net lease loans held for sale increased $50.3 million during the nine months ended June 30, 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 $15.3 million, or 30.8%, to $64.8 million at June 30, 2022.

Total liabilities increased $296.4 million due primarily to increases in FHLB borrowings, total deposits and other borrowings of $154.1 million, $118.1 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 $11.2 million, from $180.4 million at September 30, 2021 to $169.2 million at June 30, 2022, due primarily to a decrease in accumulated other comprehensive income of $21.5 million, partially offset by retained net income of $11.3 million. The decrease in accumulated other comprehensive income was primarily due to increasing market interest rates during the nine months ended June 30, 2022, which resulted in a decrease in the fair value of the available-for-sale securities portfolio. At June 30, 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 Ohio 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								Nine Months Ended
OPERATING DATA:	June 30,								June 30,
(In thousands, except share and per share data)	2022				2021				2022				2021
Total interest income	$	18,479			$	16,150			$	50,042			$	49,016
Total interest expense		2,568				1,921				6,215				6,268
Net interest income		15,911				14,229				43,827				42,748
Provision (credit) for loan losses		532				(2,730	)			1,028				(1,775	)
Net interest income after provision (credit) for loan losses		15,379				16,959				42,799				44,523
Total noninterest income		10,033				18,785				46,696				103,941
Total noninterest expense		22,835				30,619				73,148				114,305
Income before income taxes		2,577				5,125				16,347				34,159
Income tax expense (benefit)		(61	)			817				2,369				9,039
Net income		2,638				4,308				13,978				25,120
Less: Net income attributable to noncontrolling interests		-				-				-				402
Net income attributable to the Company	$	2,638			$	4,308			$	13,978			$	24,718
Net income per share, basic	$	0.37			$	0.61			$	1.97			$	3.48
Weighted average shares outstanding, basic		7,073,204				7,109,481				7,082,034				7,106,505
Net income per share, diluted	$	0.37			$	0.60			$	1.95			$	3.45
Weighted average shares outstanding, diluted		7,145,288				7,178,943				7,166,632				7,166,235
Performance ratios (three-month and nine-month data annualized)
Return on average assets		0.55	%			1.00	%			1.04	%			1.87	%
Return on average equity		6.06	%			9.94	%			10.33	%			19.95	%
Return on average common stockholders' equity		6.06	%			9.94	%			10.33	%			19.65	%
Net interest margin (tax equivalent basis)		3.77	%			3.75	%			3.73	%			3.63	%
Efficiency ratio		88.02	%			92.75	%			80.81	%			77.92	%
									QTD								FYTD
FINANCIAL CONDITION DATA:	June 30,				March 31,				Increase				September 30,				Increase
(In thousands, except per share data)	2022				2022				(Decrease)				2021				(Decrease)
Total assets	$	2,006,666			$	1,801,944			$	204,722			$	1,721,394			$	285,272
Cash and cash equivalents		37,468				31,105				6,363				33,428				4,040
Investment securities		309,027				284,674				24,353				208,518				100,509
Loans held for sale		188,031				152,652				35,379				214,940				(26,909	)
Gross loans (1)		1,282,796				1,141,293				141,503				1,090,237				192,559
Allowance for loan losses		14,980				14,475				505				14,301				679
Interest earning assets		1,809,588				1,602,321				207,267				1,540,111				269,477
Goodwill		9,848				9,848				-				9,848				-
Core deposit intangibles		828				882				(54	)			988				(160	)
Loan servicing rights		69,039				68,267				772				54,026				15,013
Noninterest-bearing deposits		343,292				311,738				31,554				291,039				52,253
Interest-bearing deposits (2)		1,002,415				909,451				92,964				936,541				65,874
Federal Home Loan Bank borrowings		404,098				296,592				107,506				250,000				154,098
Total liabilities		1,837,453				1,621,991				215,462				1,541,017				296,436
Stockholders' equity, net of noncontrolling interests		169,213				179,953				(10,740	)			180,377				(11,164	)
Book value per share	$	23.80			$	25.10			$	(1.30	)		$	25.31				(1.51	)
Tangible book value per share (3)		22.30				23.60				(1.30	)			23.79				(1.49	)
Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	5,165			$	5,214			$	(49	)		$	6,748			$	(1,583	)
Nonaccrual loans - unguaranteed		4,717				4,842				(125	)			8,252				(3,535	)
Total nonaccrual loans	$	9,882			$	10,056			$	(174	)		$	15,000			$	(5,118	)
Accruing loans past due 90 days		-				-				-				472				(472	)
Total non-performing loans		9,882				10,056				(174	)			15,472				(5,590	)
Troubled debt restructurings classified as performing loans		2,822				3,017				(195	)			1,743				1,079
Total non-performing assets	$	12,704			$	13,073			$	(369	)		$	17,215			$	(4,511	)
Asset quality ratios:
Allowance for loan losses as a percent of total gross loans		1.17	%			1.27	%			(0.10	%)			1.31	%			(0.14	%)
Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4)		1.17	%			1.28	%			(0.11	%)			1.38	%			(0.21	%)
Allowance for loan losses as a percent of nonperforming loans		151.59	%			143.94	%			7.65	%			92.43	%			59.16	%
Nonperforming loans as a percent of total gross loans		0.77	%			0.88	%			(0.11	%)			1.42	%			(0.65	%)
Nonperforming assets as a percent of total assets		0.63	%			0.73	%			(0.10	%)			1.00	%			(0.37	%)
(1) Includes $1.8 million, $13.4 million and $56.7 million of PPP loans at June 30, 2022, March 31, 2022 and September 30, 2021, respectively.
(2) Includes $159.1 million, $69.8 million and $100.1 million of brokered certificates of deposit at June 30, 2022, March 31, 2022 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
	June 30,				March 31,				Increase				September 30,				Increase
Tangible Book Value Per Share	2022				2022				(Decrease)				2021				(Decrease)
(In thousands, except share and per share data)
Stockholders' equity, net of noncontrolling interests (GAAP)	$	169,213			$	179,953			$	(10,740	)		$	180,377			$	(11,164	)
Less: goodwill and core deposit intangibles		(10,676	)			(10,730	)			54				(10,836	)			160
Tangible equity (non-GAAP)	$	158,537			$	169,223				(10,686	)		$	169,541				(11,004	)
Outstanding common shares		7,110,706				7,169,826				(59,120	)			7,125,888				(15,182	)
Tangible book value per share (non-GAAP)	$	22.30			$	23.60			$	(1.30	)		$	23.79			$	(1.49	)
Book value per share (GAAP)	$	23.80			$	25.10			$	(1.30	)		$	25.31			$	(1.51	)
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands, except per share data)	2022				2022				2021				2021				2021
Total cash and cash equivalents	$	37,468			$	31,105			$	40,592			$	33,428			$	22,909
Total investment securities		309,027				284,674				220,926				208,518				209,551
Total loans held for sale		188,031				152,652				161,218				214,940				277,374
Total loans, net of allowance for loan losses		1,267,816				1,126,818				1,142,655				1,075,936				1,065,852
PPP loans		1,766				13,415				46,020				56,656				100,573
Loan servicing rights		69,039				68,267				59,187				54,026				51,778
Total assets		2,006,666				1,801,944				1,764,589				1,721,394				1,759,330
Retail deposits	$	1,186,582			$	1,151,437			$	1,146,454			$	1,127,522			$	1,064,358
Brokered deposits		159,125				69,752				120,581				100,058				62,797
Total deposits		1,345,707				1,221,189				1,267,035				1,227,580				1,127,155
Federal Home Loan Bank borrowings		404,098				296,592				258,377				250,000				283,289
Federal Reserve PPPLF borrowings		-				-				-				-				107,829
Common stock and additional paid-in capital	$	27,236			$	27,154			$	27,073			$	25,799			$	25,741
Retained earnings - substantially restricted		161,438				159,732				153,630				150,185				146,191
Accumulated other comprehensive income (loss)		(12,560	)			(1,336	)			9,219				8,900				10,358
Unearned stock compensation		(1,075	)			(1,180	)			(1,285	)			(138	)			(184	)
Less treasury stock, at cost		(5,826	)			(4,417	)			(4,417	)			(4,369	)			(4,371	)
Total stockholders' equity		169,213				179,953				184,220				180,377				177,735
Outstanding common shares		7,110,706				7,169,826				7,169,826				7,125,888				7,124,388
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Statements of Income	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands, except per share data)	2022				2022				2021				2021				2021
Total interest income	$	18,479			$	15,801			$	15,762			$	16,243			$	16,150
Total interest expense		2,568				1,788				1,859				1,819				1,921
Net interest income		15,911				14,013				13,903				14,424				14,229
Provision (credit) for loan losses		532				(30	)			526				8				(2,730	)
Net interest income after provision (credit) for loan losses		15,379				14,043				13,377				14,416				16,959
Total noninterest income		10,033				20,072				16,591				16,495				18,785
Total noninterest expense		22,835				25,461				24,852				25,104				30,619
Income before income taxes		2,577				8,654				5,116				5,807				5,125
Income tax expense (benefit)		(61	)			1,619				811				958				817
Net income attributable to the Company	$	2,638			$	7,035			$	4,305			$	4,849			$	4,308
Net income per share, basic	$	0.37			$	0.99			$	0.60			$	0.68			$	0.61
Weighted average shares outstanding, basic		7,073,204				7,076,355				7,116,790				7,111,594				7,109,481
Net income per share, diluted	$	0.37			$	0.98			$	0.60			$	0.67			$	0.60
Weighted average shares outstanding, diluted		7,145,288				7,156,229				7,207,210				7,200,357				7,178,943
	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
Consolidated Performance Ratios (Annualized)	2022				2022				2021				2021				2021
Return on average assets		0.55	%			1.61	%			1.01	%			1.12	%			1.00	%
Return on average equity		6.06	%			15.24	%			9.45	%			10.92	%			9.94	%
Return on average common stockholders' equity		6.06	%			15.24	%			9.45	%			10.92	%			9.94	%
Net interest margin (tax equivalent basis)		3.77	%			3.68	%			3.73	%			3.79	%			3.75	%
Efficiency ratio		88.02	%			74.70	%			81.50	%			81.19	%			92.75	%
	As of or for the Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
Consolidated Asset Quality Ratios	2022				2022				2021				2021				2021
Nonperforming loans as a percentage of total loans		0.77	%			0.88	%			1.10	%			1.42	%			1.15	%
Nonperforming assets as a percentage of total assets		0.63	%			0.73	%			0.82	%			1.00	%			0.81	%
Allowance for loan losses as a percentage of total loans		1.17	%			1.27	%			1.28	%			1.31	%			1.36	%
Allowance for loan losses as a percentage of nonperforming loans		151.59	%			143.94	%			116.12	%			92.43	%			117.88	%
Net charge-offs to average outstanding loans		0.00	%			0.02	%			0.00	%			0.03	%			0.00	%
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands, except per share data)	2022				2022				2021				2021				2021
Core Banking Segment:
Net interest income	$	13,848			$	11,847			$	11,495			$	11,517			$	11,401
Provision (credit) for loan losses		910				(240	)			(144	)			(189	)			(2,401	)
Net interest income after provision (credit) for loan losses		12,938				12,087				11,639				11,706				13,802
Noninterest income		2,379				2,163				1,942				1,780				1,509
Noninterest expense		10,187				9,811				9,482				8,800				9,364
Income before income taxes		5,310				4,439				4,099				4,686				5,947
Income tax expense		568				330				500				569				792
Net income attributable to the Company	$	4,562			$	4,109			$	3,599			$	4,117			$	5,155
SBA Lending Segment (Q2):
Net interest income (5)	$	1,449			$	1,602			$	1,875			$	2,455			$	2,510
Provision (credit) for loan losses		(378	)			210				670				197				(329	)
Net interest income after provision (credit) for loan losses		1,827				1,392				1,205				2,258				2,839
Noninterest income		584				1,658				1,901				2,194				2,675
Noninterest expense		2,341				2,253				2,236				1,973				2,206
Income before income taxes		70				797				870				2,479				3,308
Income tax expense		26				240				265				612				790
Net income attributable to the Company (6)	$	44			$	557			$	605			$	1,867			$	2,518
Mortgage Banking Segment:
Net interest income	$	614			$	564			$	533			$	452			$	318
Provision for loan losses		-				-				-				-				-
Net interest income after provision for loan losses		614				564				533				452				318
Noninterest income		7,070				16,251				12,748				12,521				14,601
Noninterest expense		10,307				13,397				13,134				14,331				19,049
Income (loss) before income taxes		(2,623	)			3,418				147				(1,358	)			(4,130	)
Income tax expense (benefit)		(655	)			1,049				46				(223	)			(765	)
Net income (loss) attributable to the Company	$	(1,968	)		$	2,369			$	101			$	(1,135	)		$	(3,365	)
(5) Includes net interest income derived from PPP loans of:	$	173			$	239			$	550			$	1,145			$	1,220
(6) Includes net income attributable to the Company derived from PPP loans (tax effected) of:	$	130			$	179			$	413			$	859			$	915
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands, except per share data)	2022				2022				2021				2021				2021
Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking	$	0.64			$	0.58			$	0.50			$	0.58			$	0.73
Net income per share, basic - SBA Lending (Q2) (7)		0.01				0.08				0.09				0.26				0.35
Net income (loss) per share, basic - Mortgage Banking		(0.28	)			0.33				0.01				(0.16	)			(0.47	)
Total net income per share, basic (7)	$	0.37			$	0.99			$	0.60			$	0.68			$	0.61
Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	0.64			$	0.57			$	0.50			$	0.57			$	0.72
Net income per share, diluted - SBA Lending (Q2) (8)		0.01				0.08				0.09				0.26				0.35
Net income (loss) per share, diluted - Mortgage Banking		(0.28	)			0.33				0.01				(0.16	)			(0.47	)
Total net income per share, diluted (8)	$	0.37			$	0.98			$	0.60			$	0.67			$	0.60
Return on Average Assets by Segment (three-month data annualized)
Core Banking		1.12	%			1.14	%			1.05	%			1.24	%			1.62	%
SBA Lending		0.17	%			1.80	%			1.55	%			4.01	%			4.09	%
Mortgage Banking		(4.50	%)			5.38	%			0.23	%			(2.11	%)			(6.84	%)
Efficiency Ratio by Segment (three-month data annualized)
Core Banking		62.78	%			70.03	%			70.57	%			66.18	%			72.53	%
SBA Lending		115.15	%			69.11	%			59.22	%			42.44	%			42.55	%
Mortgage Banking		134.14	%			79.67	%			98.89	%			110.47	%			127.68	%
(7) Includes basic net income per share derived from PPP loans (tax effected) of:	$	0.02			$	0.03			$	0.06			$	0.12			$	0.13
(8) Includes diluted net income per share derived from PPP loans (tax effected) of:	$	0.02			$	0.03			$	0.06			$	0.12			$	0.13
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Expense Detail by Segment	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands)	2022				2022				2021				2021				2021
Core Banking Segment:
Compensation (9)	$	5,995			$	5,207			$	5,776			$	5,220			$	5,039
Occupancy		1,412				1,393				1,357				1,415				1,473
Advertising		284				297				232				268				213
Other		2,496				2,914				2,117				1,897				2,639
Total Noninterest Expense	$	10,187			$	9,811			$	9,482			$	8,800			$	9,364
SBA Lending Segment (Q2):
Compensation	$	1,619			$	1,724			$	1,685			$	1,602			$	1,697
Occupancy		60				64				78				83				101
Advertising		3				9				9				6				3
Other		659				456				464				282				405
Total Noninterest Expense	$	2,341			$	2,253			$	2,236			$	1,973			$	2,206
Mortgage Banking Segment:
Compensation (9)	$	7,601			$	10,292			$	9,867			$	11,456			$	14,594
Occupancy		597				622				678				723				1,012
Advertising		519				696				551				588				1,133
Other		1,590				1,787				2,038				1,564				2,310
Total Noninterest Expense	$	10,307			$	13,397			$	13,134			$	14,331			$	19,049
(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:	$	1,164			$	869			$	975			$	678			$	-
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
Mortgage Banking Noninterest Expense Fixed vs. Variable	2022				2022				2021				2021				2021
(In thousands)
Noninterest Expense - Fixed Expenses	$	6,989			$	7,936			$	7,752			$	7,779			$	9,764
Noninterest Expense - Variable Expenses (10)		3,318				5,461				5,382				6,552				9,285
Total Noninterest Expense	$	10,307			$	13,397			$	13,134			$	14,331			$	19,049
	Three Months Ended
SBA Lending (Q2) Data	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands, except percentage data)	2022				2022				2021				2021				2021
Final funded loans guaranteed portion sold, SBA	$	5,364			$	14,355			$	14,131			$	14,894			$	17,969
Gross gain on sales of loans, SBA	$	592			$	1,670			$	1,841			$	2,134			$	2,551
Weighted average gross gain on sales of loans, SBA		11.04	%			11.63	%			13.03	%			14.33	%			14.20	%
Net gain on sales of loans, SBA (11)	$	486			$	1,327			$	1,636			$	1,912			$	2,322
Weighted average net gain on sales of loans, SBA		9.06	%			9.24	%			11.58	%			12.84	%			12.92	%
	Three Months Ended
Mortgage Banking Data	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands, except percentage data)	2022				2022				2021				2021				2021
Mortgage originations for sale in the secondary market	$	421,426			$	459,434			$	541,074			$	579,458			$	739,502
Mortgage sales	$	426,200			$	478,816			$	587,928			$	670,107			$	716,425
Gross gain on sales of loans, mortgage banking (12)	$	7,419			$	10,988			$	11,082			$	10,796			$	11,999
Weighted average gross gain on sales of loans, mortgage banking		1.74	%			2.29	%			1.88	%			1.61	%			1.67	%
Mortgage banking income (13)	$	7,093			$	16,254			$	12,744			$	12,538			$	14,616
(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 Sheets	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands)	2022				2022				2021				2021				2021
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	25,068			$	36,029			$	33,065			$	63,217			$	37,683
Loans, excluding PPP loans		1,381,366				1,268,983				1,221,879				1,194,277				1,155,958
PPP loans		4,271				22,066				51,178				84,288				145,227
Investment securities - taxable		103,536				50,165				47,717				46,005				46,392
Investment securities - nontaxable		202,534				163,472				153,452				148,723				148,280
FRB and FHLB stock		18,691				19,021				19,258				19,258				19,258
Total interest-earning assets	$	1,735,466			$	1,559,736			$	1,526,549			$	1,555,768			$	1,552,798
Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	37			$	13			$	14			$	23			$	14
Loans, excluding PPP loans		15,788				13,745				13,424				13,279				13,017
PPP loans		177				258				595				1,219				1,347
Investment securities - taxable		769				420				405				421				447
Investment securities - nontaxable		1,987				1,571				1,509				1,482				1,496
FRB and FHLB stock		169				146				149				146				161
Total interest income (tax equivalent basis)	$	18,927			$	16,153			$	16,096			$	16,570			$	16,482
Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		0.59	%			0.14	%			0.17	%			0.15	%			0.15	%
Loans, excluding PPP loans		4.57	%			4.33	%			4.39	%			4.45	%			4.50	%
PPP loans		16.58	%			4.68	%			4.65	%			5.78	%			3.71	%
Investment securities - taxable		2.97	%			3.35	%			3.40	%			3.66	%			3.85	%
Investment securities - nontaxable		3.92	%			3.84	%			3.93	%			3.99	%			4.04	%
FRB and FHLB stock		3.62	%			3.07	%			3.09	%			3.03	%			3.34	%
Total interest-earning assets		4.36	%			4.14	%			4.22	%			4.26	%			4.25	%
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Average Balance Sheets	June 30,				March 31,				December 31,				September 30,				June 30,
(In thousands)	2022				2022				2021				2021				2021
Interest-bearing liabilities
Average balances:
Interest-bearing deposits	$	998,868			$	922,137			$	913,297			$	935,800			$	807,342
Federal Home Loan Bank borrowings		325,460				280,190				264,617				255,210				272,834
Federal Reserve PPPLF borrowings		-				-				-				11,937				114,453
Subordinated debt and other borrowings		50,152				24,592				19,870				19,853				19,836
Total interest-bearing liabilities	$	1,374,480			$	1,226,919			$	1,197,784			$	1,222,800			$	1,214,465
Interest expense:
Interest-bearing deposits	$	1,047			$	738			$	811			$	765			$	723
Federal Home Loan Bank borrowings		811				681				730				725				780
Federal Reserve PPPLF borrowings		-				-				-				12				98
Subordinated debt and other borrowings		710				369				318				319				320
Total interest expense	$	2,568			$	1,788			$	1,859			$	1,821			$	1,921
Weighted average cost (annualized):
Interest-bearing deposits		0.42	%			0.32	%			0.36	%			0.33	%			0.36	%
Federal Home Loan Bank borrowings		1.00	%			0.97	%			1.10	%			1.14	%			1.14	%
Federal Reserve PPPLF borrowings		0.00	%			0.00	%			0.00	%			0.40	%			0.34	%
Subordinated debt and other borrowings		5.66	%			6.00	%			6.40	%			6.43	%			6.45	%
Total interest-bearing liabilities		0.75	%			0.58	%			0.62	%			0.60	%			0.63	%
Interest rate spread (tax equivalent basis, annualized)		3.61	%			3.56	%			3.60	%			3.66	%			3.62	%
Net interest margin (tax equivalent basis, annualized)		3.77	%			3.68	%			3.73	%			3.79	%			3.75	%
Net interest margin, excluding PPP loans and PPPLF borrowings (non-GAAP), (tax equivalent basis, annualized)		3.74	%			3.67	%			3.70	%			3.68	%			3.78	%