• First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2023

    来源: Nasdaq GlobeNewswire / 30 1月 2024 17:45:01   America/New_York

    JEFFERSONVILLE, Ind., Jan. 30, 2024 (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 $920,000, or $0.13 per diluted share, for the quarter ended December 31, 2023 compared to net income of $2.9 million, or $0.41 per diluted share, for the quarter ended December 31, 2022. The core banking segment reported net income of $4.0 million, or $0.59 per diluted share for the quarter ending December 31, 2023.

    During the quarter ended December 31, 2023, the Company ceased its national originate-to-sell residential mortgage banking operations, consummated the bulk sale of substantially all residential mortgage loan servicing rights with Nationstar Mortgage LLC (“Nationstar”), and entered into a letter of intent for the mini-bulk sale of its remaining residential mortgage servicing rights, which were valued at December 31, 2023 at the net expected realizable value on the expected close date of February 29, 2024. As a result of these actions, the Company does not anticipate recognizing material financial effects to its future financial performance related to the former mortgage banking operations. Notwithstanding the forgoing, the Company has an accrued estimated contingent liability of $1.1 million for possible reimbursement to Nationstar for mortgage servicing rights it purchased that are associated with loans that experience early payoffs (“EPOs”) and early payment defaults (“EPDs”) in the first 90 days following the close of the sale on November 30, 2023. Depending on repayment activity related to such during that 90-day period, the Company may recognize a material financial effect upon final settlement with Nationstar in the quarter ending March 31, 2024. The Company continues to originate residential mortgage loans in its local southern Indiana markets and first-lien home equity lines of credit from its loan production office in Franklin, Tennessee.

    The Company modified the manner in which it recognizes dividends from the Federal Home Loan Bank of Indianapolis, which adversely impacted the Company’s net interest margin by approximately 8 basis points for the quarter ended December 31, 2023. This adverse effect will not be recognized in future quarter.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “While the former national mortgage banking division was a financial success for several years, we are pleased to have finalized the winddown of those operations and pivot to improving financial results. The core banking segment performed reasonably well while the SBA lending segment underperformed due to higher than anticipated provisions for credit losses. We continue to move on the right trajectory and expect the financial performance of both the core banking and SBA lending segments to improve. We continue our focus on reducing balance sheet and operating inefficiencies; strong asset quality; selective high-quality lending; deposit growth; and improvement of liquidity, capital and interest rate sensitivity positions. We believe these measures will deliver increasing financial results and shareholder value.”

    Results of Operations for the Three Months Ended December 31, 2023 and 2022

    Net interest income decreased $2.1 million, or 13.2%, to $14.1 million for the three months ended December 31, 2023 as compared to the same period 2022. The decrease in net interest income was due to a $7.3 million increase in interest expense, partially offset by a $5.2 million increase in interest income. Interest income increased due to an increase in the average balance of interest-earning assets of $190.5 million, from $1.98 billion for 2022 to $2.17 billion for 2023, and an increase in the weighted-average tax-equivalent yield, from 4.87% for 2022 to 5.37% for 2023. The increase in the average balance of interest-earning assets was due primarily to a $274.5 million increase in the average balance of loans, partially offset by a decrease in the average balance of investment securities of $89.8 million. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $265.8 million, from $1.61 billion for 2022 to $1.88 billion for 2023, and an increase in the average cost of interest-bearing liabilities, from 1.79% for 2022 to 3.10% for 2023. The increase in the average cost of interest-bearing liabilities for 2023 was due primarily to higher rates for FHLB borrowings, brokered deposits, and money market deposit accounts as a result of increased market interest rates due to competition and higher U.S. Treasury rates.

    The Company recognized a provision for credit losses of $412,000 for the three months ended December 31, 2023, compared to $984,000 for the same period in 2022. The Company recognized net charge-offs of $9,000 for the three months ended December 31, 2023, compared to net charge-offs of $264,000 in 2022, of which $247,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $1.6 million from $13.9 million at September 30, 2023 to $15.5 million at December 31, 2023.

    Noninterest income decreased $2.4 million for the three months ended December 31, 2023 as compared to the same period in 2022. The decrease was due primarily to a $2.4 million decrease in mortgage banking income, which was a result of the winddown of the national mortgage banking operations that was completed in December 2023.

    Noninterest expense decreased $1.5 million for the three months ended December 31, 2023 as compared to the same period in 2022. The decrease was due primarily to decreases in compensation and benefits expense of $1.0 million and other operating expense of $1.0 million. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the winddown of the national mortgage banking operations. The decrease in other operating expense was due primarily to litigation accruals and adjustments of $460,000 and captive insurance losses of $385,000 in 2022 with no corresponding amounts in 2023, and the reversal of a litigation accrual of $275,000 in 2023.

    The Company recognized income tax benefit of $476,000 for the three months ended December 31, 2023 compared to tax expense of $83,000 for the same period in 2022. The decrease in income tax expense was due primarily to lower pre-tax income and utilization of investment tax credits related to solar projects in the 2023 period.

    Comparison of Financial Condition at December 31, 2023 and September 30, 2023

    Total assets increased $19.2 million, from $2.29 billion at September 30, 2023 to $2.31 billion at December 31, 2023. Net loans held for investment increased $71.7 million during the quarter ended December 31, 2023 due primarily to growth in residential mortgage and commercial business loans. Debt securities available for sale increased $17.8 million during the quarter ended December 31, 2023 due primarily to a decrease in the unrealized loss on securities available for sale. Residential mortgage loan servicing rights decreased $59.1 million during the quarter ended December 31, 2023, due to the sale of substantially all residential mortgage loan servicing rights during the period.

    Total liabilities increased $5.7 million due primarily to increases in accrued expenses and other liabilities and total deposits of $7.2 million and $2.1 million, respectively, offset by a decrease in FHLB borrowings of $6.5 million. As of December 31, 2023, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 26.6% of total deposits and 11.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

    Common stockholders’ equity increased $13.5 million, from $151.0 million at September 30, 2023 to $164.5 million at December 31, 2023, due primarily to a $16.0 million decrease in accumulated other comprehensive loss, partially offset by a decrease in retained net income of $2.6 million. The increase in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the quarter ended December 31, 2023, which resulted in an increase in the fair value of securities available for sale. The decrease in retained net income was due primarily to the Company’s adoption of ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (commonly referred to as “CECL”) effective October 1, 2023, resulting in a one-time adjustment of $2.5 million. At December 31, 2023 and September 30, 2023, 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) 2023   2022       
              
    Total interest income$28,655  $23,483       
    Total interest expense 14,542   7,222       
              
    Net interest income 14,113   16,261       
    Provision for credit losses 412   984       
              
    Net interest income after provision for credit losses 13,701   15,277       
              
    Total noninterest income 2,782   5,188       
    Total noninterest expense 16,039   17,511       
              
    Income before income taxes 444   2,954       
    Income tax expense (benefit) (476)  83       
              
    Net income$920  $2,871       
              
    Net income per share, basic$0.13  $0.42       
    Weighted average shares outstanding, basic 6,823,948   6,915,909       
              
    Net income per share, diluted$0.13  $0.41       
    Weighted average shares outstanding, diluted 6,839,704   6,972,055       
              
              
    Performance ratios (annualized)         
    Return on average assets 0.16%  0.54%      
    Return on average equity 2.42%  7.50%      
    Return on average common stockholders' equity 2.42%  7.50%      
    Net interest margin (tax equivalent basis) 2.69%  3.41%      
    Efficiency ratio 94.93%  81.64%      
              
              
         QTD    
    FINANCIAL CONDITION DATA:December 31, September 30, Increase    
    (In thousands, except per share data) 2023   2023  (Decrease)    
              
    Total assets$2,308,092  $2,288,854  $19,238     
    Cash and cash equivalents 33,366   30,845   2,521     
    Investment securities 246,801   229,039   17,762     
    Loans held for sale 22,866   45,855   (22,989)    
    Gross loans 1,860,742   1,787,143   73,599     
    Allowance for credit losses (1) 18,789   16,900   1,889     
    Interest earning assets 2,152,941   2,083,397   69,544     
    Goodwill 9,848   9,848   -     
    Core deposit intangibles 520   561   (41)    
    Loan servicing rights 3,711   62,819   (59,108)    
    Noninterest-bearing deposits 202,769   242,237   (39,468)    
    Interest-bearing deposits (retail) 978,182   1,001,238   (23,056)    
    Interest-bearing deposits (brokered) 502,895   438,319   64,576     
    Federal Home Loan Bank borrowings 356,699   363,183   (6,484)    
    Subordinated debt and other borrowings 48,484   48,444   40     
    Total liabilities 2,143,569   2,137,873   5,696     
    Accumulated other comprehensive loss (13,606)  (29,587)  15,981     
    Stockholders' equity 164,523   150,981   13,542     
              
    Book value per share$23.90  $21.99  $1.92     
    Tangible book value per share - Non-GAAP (2) 22.40   20.47   1.93     
              
    Non-performing assets:         
    Nonaccrual loans - SBA guaranteed$5,066  $5,091  $(25)    
    Nonaccrual loans 10,442   8,857   1,585     
    Total nonaccrual loans$15,508  $13,948  $1,560     
    Accruing loans past due 90 days -   -   -     
    Total non-performing loans 15,508   13,948   1,560     
    Foreclosed real estate 444   474   (30)    
    Troubled debt restructurings classified as performing loans -   1,266   (1,266)    
    Total non-performing assets$15,952  $15,688  $264     
              
    Asset quality ratios:         
    Allowance for credit losses as a percent of total gross loans 1.01%  0.95%  0.06%    
    Allowance for credit losses as a percent of nonperforming loans 121.16%  121.16%  (0.01%)    
    Nonperforming loans as a percent of total gross loans 0.83%  0.78%  0.05%    
    Nonperforming assets as a percent of total assets 0.69%  0.69%  0.01%    
              
    (1) The Company adopted ASU 2016-13 Topic 326 on October 1, 2023. Allowance as of December 31, 2023 was determined using expected loss methodology (CECL). Allowance as of September 30, 2023 was determined using the previous incurred loss methodology.
              
    (2) 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.    
            
    Tangible Book Value Per ShareDecember 31, September 30, Increase    
    (In thousands, except share and per share data) 2023   2023  (Decrease)    
              
    Stockholders' equity, net of noncontrolling interests (GAAP)$164,523  $150,981  $13,542     
    Less: goodwill and core deposit intangibles (10,368)  (10,409)  41     
    Tangible equity (non-GAAP)$154,155  $140,572   13,583     
              
    Outstanding common shares 6,883,160   6,867,121   16,039     
              
    Tangible book value per share (non-GAAP)$22.40  $20.47  $1.93     
              
    Book value per share (GAAP)$23.90  $21.99  $1.91     
              
              
    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) 2023   2023   2023   2023   2022 
              
    Total cash and cash equivalents$33,366  $30,845  $42,475  $41,810  $38,278 
    Total investment securities 246,801   229,039   249,788   336,317   330,683 
    Total loans held for sale 22,866   45,855   63,142   48,783   44,281 
    Total loans, net of allowance for credit losses 1,841,953   1,770,243   1,691,289   1,598,440   1,582,940 
    Loan servicing rights 3,711   62,819   64,139   65,045   65,598 
    Total assets 2,308,092   2,288,854   2,260,421   2,239,606   2,196,919 
              
    Retail deposits$1,180,951  $1,243,475  $1,245,534  $1,206,154  $1,211,677 
    Brokered deposits 502,895   438,319   414,231   336,728   326,164 
    Total deposits 1,683,846   1,681,794   1,659,765   1,542,882   1,537,841 
    Federal Home Loan Bank borrowings 356,699   363,183   345,000   437,795   377,643 
              
    Common stock and additional paid-in capital$27,397  $27,064  $27,518  $27,443  $27,425 
    Retained earnings - substantially restricted 163,753   166,306   168,015   166,652   163,890 
    Accumulated other comprehensive income (loss) (13,606)  (29,587)  (17,565)  (14,199)  (19,000)
    Unearned stock compensation (1,194)  (1,015)  (1,113)  (1,211)  (1,361)
    Less treasury stock, at cost (11,827)  (11,787)  (11,787)  (11,787)  (10,810)
    Total stockholders' equity 164,523   150,981   165,068   166,898   160,144 
              
    Outstanding common shares 6,883,160   6,867,121   6,865,921   6,865,921   6,917,921 
              
              
     Three Months Ended
    Summarized Consolidated Statements of IncomeDecember 31, September 30, June 30, March 31, December 31,
    (In thousands, except per share data) 2023   2023   2023   2023   2022 
              
    Total interest income$28,655  $28,137  $26,798  $24,811  $23,483 
    Total interest expense 14,542   12,601   11,933   9,899   7,222 
    Net interest income 14,113   15,536   14,865   14,912   16,261 
    Provision for credit losses 412   815   441   372   984 
    Net interest income after provision for credit losses 13,701   14,721   14,424   14,540   15,277 
              
    Total noninterest income 2,782   5,442   7,196   7,516   5,188 
    Total noninterest expense 16,039   21,647   18,965   17,999   17,511 
    Income (loss) before income taxes 444   (1,484)  2,655   4,057   2,954 
    Income tax expense (benefit) (476)  (737)  331   333   83 
    Net income (loss)$920  $(747) $2,324  $3,724  $2,871 
              
              
    Net income (loss) per share, basic$0.13  $(0.11) $0.34  $0.54  $0.42 
    Weighted average shares outstanding, basic 6,823,948   6,817,365   6,816,608   6,842,897   6,915,909 
              
    Net income (loss) per share, diluted$0.13  $(0.11) $0.34  $0.54  $0.41 
    Weighted average shares outstanding, diluted 6,839,704   6,837,919   6,819,748   6,881,496   6,972,055 
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Noninterest Income DetailDecember 31, September 30, June 30, March 31, December 31,
    (In thousands) 2023   2023   2023   2023   2022 
              
    Service charges on deposit accounts$473  $479  $509  $471  $558 
    ATM and interchange fees 449   816   615   586   739 
    Net gain (loss) on sales of available for sale securities -   (11)  (540)  -   - 
    Net unrealized gain (loss) on equity securities 38   11   11   21   14 
    Other than temporary impairment loss on securities -   -   -   -   (28)
    Net gain on sales of loans, Small Business Administration 834   538   497   907   775 
    Mortgage banking income 89   3,018   4,668   4,149   2,496 
    Increase in cash surrender value of life insurance 329   311   279   266   225 
    Commission income 222   182   247   189   128 
    Real estate lease income 115   116   119   117   117 
    Net gain on premises and equipment -   20   -   29   - 
    Gain from repurchase of subordinated debt -   -   660   -   - 
    Other income 233   (38)  131   781   164 
    Total noninterest income$2,782  $5,442  $7,196  $7,516  $5,188 
              
              
     Three Months Ended
     December 31, September 30, June 30, March 31, December 31,
    Consolidated Performance Ratios (Annualized) 2023   2023   2023   2023   2022 
              
    Return on average assets 0.16%  (0.13%)  0.41%  0.68%  0.54%
    Return on average equity 2.42%  (1.82%)  5.60%  9.15%  7.50%
    Return on average common stockholders' equity 2.42%  (1.82%)  5.60%  9.15%  7.50%
    Net interest margin (tax equivalent basis) 2.69%  3.03%  2.94%  3.06%  3.41%
    Efficiency ratio 94.93%  103.19%  85.97%  80.25%  81.64%
              
              
     As of or for the Three Months Ended
     December 31, September 30, June 30, March 31, December 31,
    Consolidated Asset Quality Ratios 2023   2023   2023   2023   2022 
              
    Nonperforming loans as a percentage of total loans 0.83%  0.78%  0.69%  0.77%  0.72%
    Nonperforming assets as a percentage of total assets 0.69%  0.69%  0.62%  0.67%  0.64%
    Allowance for credit losses as a percentage of total loans 1.01%  0.95%  0.99%  1.02%  1.01%
    Allowance for credit losses as a percentage of nonperforming loans 121.16%  121.16%  143.83%  132.20%  139.55%
    Net charge-offs to average outstanding loans 0.00%  0.04%  0.00%  -0.00%  0.02%
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Segmented Statements of Income InformationDecember 31, September 30, June 30, March 31, December 31,
    (In thousands) 2023   2023   2023   2023   2022 
              
    Core Banking Segment:         
    Net interest income$13,113  $14,167  $13,407  $13,632  $15,008 
    Provision (credit) for credit losses (49)  1,266   880   422   701 
    Net interest income after provision for credit losses 13,162   12,901   12,527   13,210   14,307 
    Noninterest income 1,679   2,136   1,965   1,733   1,928 
    Noninterest expense 10,252   13,559   11,010   10,651   9,797 
    Income before income taxes 4,589   1,478   3,482   4,292   6,438 
    Income tax expense 541   3   561   401   946 
    Net income$4,048  $1,475  $2,921  $3,891  $5,492 
              
    SBA Lending Segment (Q2):         
    Net interest income$1,003  $990  $1,098  $1,093  $995 
    Provision (credit) for credit losses 461   (451)  (439)  (50)  283 
    Net interest income after provision for credit losses 542   1,441   1,537   1,143   712 
    Noninterest income 1,003   367   580   1,636   754 
    Noninterest expense 2,146   2,907   2,107   2,662   1,924 
    Income (loss) before income taxes (601)  (1,099)  10   117   (458)
    Income tax expense (benefit) (131)  (273)  (21)  20   (107)
    Net income (loss)$(470) $(826) $31  $97  $(351)
              
    Mortgage Banking Segment:         
    Net interest income (loss)$(3) $379  $360  $187  $258 
    Provision for credit losses -   -   -   -   - 
    Net interest income (loss) after provision for credit losses (3)  379   360   187   258 
    Noninterest income 100   2,939   4,651   4,147   2,506 
    Noninterest expense 3,641   5,181   5,848   4,686   5,790 
    Loss before income taxes (3,544)  (1,863)  (837)  (352)  (3,026)
    Income tax benefit (886)  (467)  (209)  (88)  (756)
    Net loss$(2,658) $(1,396) $(628) $(264) $(2,270)
              
              
    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) 2023   2023   2023   2023   2022 
              
    Net Income (Loss) Per Share by Segment         
    Net income per share, basic - Core Banking$0.59  $0.22  $0.43  $0.57  $0.80 
    Net income (loss) per share, basic - SBA Lending (Q2) (0.07)  (0.12)  -   0.01   (0.05)
    Net income (loss) per share, basic - Mortgage Banking (0.40)  (0.21)  (0.09)  (0.04)  (0.33)
    Total net income (loss) per share, basic$0.12  $(0.11) $0.34  $0.54  $0.42 
              
    Net Income (Loss) Per Diluted Share by Segment         
    Net income per share, diluted - Core Banking$0.59  $0.22  $0.43  $0.57  $0.79 
    Net income (loss) per share, diluted - SBA Lending (Q2) (0.07)  (0.12)  -   0.01   (0.05)
    Net loss per share, diluted - Mortgage Banking (0.40)  (0.21)  (0.09)  (0.04)  (0.33)
    Total net income (loss) per share, diluted$0.12  $(0.11) $0.34  $0.54  $0.41 
              
    Return on Average Assets by Segment (annualized) (3)         
    Core Banking 0.73%  0.28%  0.61%  0.85%  1.17%
    SBA Lending (2.11%)  (3.81%)  0.15%  0.42%  (1.38%)
              
    Efficiency Ratio by Segment (annualized) (3)         
    Core Banking 69.31%  83.17%  71.62%  69.32%  57.85%
    SBA Lending 106.98%  214.22%  125.57%  97.54%  110.01%
              
              
     Three Months Ended
    Noninterest Expense Detail by SegmentDecember 31, September 30, June 30, March 31, December 31,
    (In thousands) 2023   2023   2023   2023   2022 
              
    Core Banking Segment:         
    Compensation (4)$5,691  $6,528  $4,978  $5,578  $5,275 
    Occupancy 1,481   1,418   1,738   1,401   1,443 
    Advertising 189   404   334   298   213 
    Other 2,891   5,209   3,960   3,374   2,866 
    Total Noninterest Expense$10,252  $13,559  $11,010  $10,651  $9,797 
              
    SBA Lending Segment (Q2):         
    Compensation$1,826  $1,533  $1,803  $1,800  $1,622 
    Occupancy 91   68   70   70   54 
    Advertising 10   10   11   8   2 
    Other 219   1,296   223   784   246 
    Total Noninterest Expense$2,146  $2,907  $2,107  $2,662  $1,924 
              
    Mortgage Banking Segment:         
    Compensation (4)$2,146  $3,647  $4,357  $3,029  $3,788 
    Occupancy 469   395   469   449   363 
    Advertising 119   129   191   213   203 
    Other 907   1,010   831   995   1,436 
    Total Noninterest Expense$3,641  $5,181  $5,848  $4,686  $5,790 
              
    (3) Ratios for Mortgage Banking Segment are not considered meaningful due to the wind down of the national mortgage banking division in the quarter ended December 31, 2023.  
              
    (4) Compensation includes increases for the Core Banking segment and corresponding decreases for the Mortgage Banking segment that represent intersegment allocations for loans originated by the Mortgage Banking segment to be held for investment in the Core Banking loan portfolio of:$1,403  $1,516  $1,440  $1,328  $1,192 
              
              
    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) 2023   2023   2023   2023   2022 
              
    Final funded loans guaranteed portion sold, SBA$14,098  $8,431  $7,721  $15,337  $11,293 
              
    Gross gain on sales of loans, SBA$1,303  $809  $780  $1,293  $936 
    Weighted average gross gain on sales of loans, SBA 9.24%  9.60%  10.10%  8.43%  8.29%
              
    Net gain on sales of loans, SBA (5)$834  $538  $497  $907  $775 
    Weighted average net gain on sales of loans, SBA 5.92%  6.38%  6.44%  5.91%  6.86%
              
              
     Three Months Ended
    Mortgage Banking DataDecember 31, September 30, June 30, March 31, December 31,
    (In thousands, except percentage data) 2023   2023   2023   2023   2022 
              
    Mortgage originations for sale in the secondary market$61,769  $195,469  $199,601  $115,011  $77,605 
              
    Mortgage sales$81,376  $220,609  $185,557  $99,711  $96,177 
              
    Gross gain on sales of loans, mortgage banking (6)$1,133  $3,304  $3,570  $2,308  $1,217 
    Weighted average gross gain on sales of loans, mortgage banking 1.39%  1.50%  1.92%  2.31%  1.27%
              
    Mortgage banking income (7)$89  $3,018  $4,668  $4,149  $2,496 
              
    (5) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.
              
    (6) Inclusive of gains on capitalized mortgage servicing rights, realized hedging gains and loan fees, and net of lender credits and other investor expenses.
              
    (7) 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 SheetsDecember 31, September 30, June 30, March 31, December 31,
    (In thousands) 2023   2023   2023   2023   2022 
    Interest-earning assets         
    Average balances:         
    Interest-bearing deposits with banks$20,350  $21,631  $20,661  $27,649  $19,379 
    Loans 1,857,654   1,796,749   1,719,733   1,621,147   1,583,182 
    Investment securities - taxable 103,728   105,393   109,319   110,373   111,936 
    Investment securities - nontaxable 159,907   160,829   234,118   242,530   241,504 
    FRB and FHLB stock 24,968   24,939   24,509   23,289   20,063 
    Total interest-earning assets$2,166,607  $2,109,541  $2,108,340  $2,024,988  $1,976,064 
              
    Interest income (tax equivalent basis):         
    Interest-bearing deposits with banks$249  $266  $267  $192  $144 
    Loans 26,155   25,214   23,279   21,339   20,222 
    Investment securities - taxable 942   969   984   957   955 
    Investment securities - nontaxable 1,687   1,695   2,456   2,533   2,505 
    FRB and FHLB stock 74   428   423   364   220 
    Total interest income (tax equivalent basis)$29,107  $28,572  $27,409  $25,385  $24,046 
              
    Weighted average yield (tax equivalent basis, annualized):         
    Interest-bearing deposits with banks 4.89%  4.92%  5.17%  2.78%  2.97%
    Loans 5.63%  5.61%  5.41%  5.27%  5.11%
    Investment securities - taxable 3.63%  3.68%  3.60%  3.47%  3.41%
    Investment securities - nontaxable 4.22%  4.22%  4.20%  4.18%  4.15%
    FRB and FHLB stock 1.19%  6.86%  6.90%  6.25%  4.39%
    Total interest-earning assets 5.37%  5.42%  5.20%  5.01%  4.87%
              
    Interest-bearing liabilities         
    Interest-bearing deposits$1,389,384  $1,385,994  $1,278,776  $1,251,080  $1,213,419 
    Fed funds purchased -   76   11   -   - 
    Federal Home Loan Bank borrowings 440,786   353,890   434,182   374,593   311,146 
    Subordinated debt and other borrowings 48,458   48,406   49,339   50,293   88,304 
    Total interest-bearing liabilities$1,878,628  $1,788,366  $1,762,308  $1,675,966  $1,612,869 
              
    Interest expense:         
    Interest-bearing deposits$9,989  $9,457  $7,791  $6,265  $4,158 
    Fed funds purchased -   1   -   -   - 
    Federal Home Loan Bank borrowings 3,769   2,459   3,446   2,915   1,919 
    Subordinated debt and other borrowings 784   684   696   719   1,145 
    Total interest expense$14,542  $12,601  $11,933  $9,899  $7,222 
              
    Weighted average cost (annualized):         
    Interest-bearing deposits 2.88%  2.73%  2.44%  2.00%  1.37%
    Fed funds purchased 0.00%  5.26%  0.00%  0.00%  0.00%
    Federal Home Loan Bank borrowings 3.42%  2.78%  3.17%  3.11%  2.47%
    Subordinated debt and other borrowings 6.47%  5.65%  5.64%  5.72%  5.19%
    Total interest-bearing liabilities 3.10%  2.82%  2.71%  2.36%  1.79%
              
    Net interest income (taxable equivalent basis)$14,565  $15,971  $15,476  $15,486  $16,824 
    Less: taxable equivalent adjustment (452)  (435)  (611)  (574)  (563)
    Net interest income$14,113  $15,536  $14,865  $14,912  $16,261 
              
    Interest rate spread (tax equivalent basis, annualized) 2.27%  2.60%  2.49%  2.65%  3.08%
              
    Net interest margin (tax equivalent basis, annualized) 2.69%  3.03%  2.94%  3.06%  3.41%

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