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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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