First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the
"Company"), the holding company for First Savings Bank (the
"Bank"), today reported net income of $2.9 million, or $0.41 per
diluted share, for the quarter ended December 31, 2022 compared to
net income of $4.3 million, or $0.60 per diluted share, for the
quarter ended December 31, 2021.
Commenting on the Company’s performance, Larry
W. Myers, President and CEO, stated, “This first quarter of fiscal
2023 was challenging and included a number of generally
nonrecurring items that adversely affected net income. The core
banking segment recognized higher than normal provisions for loan
losses due primarily to a $109 million increase in gross loans for
the quarter. The SBA lending segment recognized a $351,000
impairment for the loan servicing asset due to the high-rate
environment. And, due to restructuring during the quarter, the
mortgage banking segment recognized approximately $1.8 million of
expense that will not be recognized in future periods. This
restructuring in mortgage banking included changes in leadership,
elimination of surplus staffing positions, closure of nonperforming
loan production offices (“LPOs”), and reduction in third-party and
vendor related expenses. As part of the restructuring, the Bank has
strategically focused on a predominately Midwest footprint for LPOs
and a greater alignment of these with the core banking operations.
While some expenses associated with the restructuring will be
recognized in the quarter ending March 31, 2023, we are confident
that this restructuring and realignment will result in the
cessation of the significant losses recognized by the mortgage
banking segment in recent quarters. The core banking segment
continues to perform well and asset quality remains strong, but
it’s increasing facing margin compression as funding costs increase
in this rate environment, particularly those associated with
wholesale funding sources such as home loan bank advances and
brokered deposits. We are encouraged by the strong performance of
the core banking segment and are optimistic for enhanced
performance of the SBA lending and mortgage banking segments in
future periods. Lastly, the Company repurchased 73,392 of its
common shares during the quarter, in addition to the 199,195
purchased in the third and fourth quarters of fiscal 2022, which
together totaled more than 3.8% of outstanding shares.”
Net interest income increased $2.4 million, or
17.0%, to $16.3 million for the three months ended December 31,
2022 as compared to the same period 2021. The increase in net
interest income was due to a $7.7 million increase in interest
income, partially offset by a $5.4 million increase in interest
expense. Interest income increased due to an increase in the
average balance of interest-earning assets of $449.5 million, from
$1.53 billion for 2021 to $1.98 billion for 2022, and an increase
in the weighted-average tax-equivalent yield, from 4.22% for 2021
to 4.87% for 2022. The increase in the average balance of
interest-earning assets was primarily due to increases in the
average balance of investment securities and total loans of $152.3
million and $310.2 million, respectively. When excluding the impact
from PPP loan payoffs, the increase in the average balance of loans
was $360.7 million when comparing the two periods. Interest expense
increased due to an increase in the average balance of
interest-bearing liabilities of $415.1 million, from $1.20 billion
for 2021 to $1.61 billion for 2022, and an increase in the average
cost of interest-bearing liabilities, from 0.62% for 2021 to 1.79%
for 2022. The increase in the average cost of interest-bearing
liabilities for 2022 was due primarily to higher rates paid for
brokered deposits and money market deposit accounts during the
period.
The Company recognized a provision for loan
losses of $984,000 for the three months ended December 31, 2022 due
primarily to loan portfolio growth, compared to a provision of
$526,000 for the same period in 2021. Nonperforming loans, which
consist of nonaccrual loans and loans over 90 days past due and
still accruing interest, increased $667,000 from $10.9 million at
September 30, 2022 to $11.5 million at December 31, 2022. The
Company recognized net charge-offs of $264,000 for the three months
ended December 31, 2022, of which $247,000 was related to
unguaranteed portions of SBA loans, compared to net charge-offs of
$47,000 in 2021.
Noninterest income decreased $11.4 million for
the three months ended December 31, 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 $10.2
million and $861,000, respectively. The decrease in mortgage
banking income was primarily due to a $3.9 million decrease in
production revenue from lower originations for sale, a $4.4 million
decrease in capitalized residential mortgage loan servicing rights,
a $1.2 million decrease in realized and unrealized hedging gains in
2022 and a $1.2 million decrease in the fair value of the
residential mortgage loan servicing rights portfolio in 2022 as
compared to a $675,000 increase in fair value recognized in 2021,
partially offset by a $1.3 million increase in the fair value of
loans held for sale and interest rate lock commitments as compared
to a $222,000 decrease in fair value recognized in 2021. Mortgage
loans originated for sale were $77.6 million in the three months
ended December 31, 2022 as compared to $541.1 million 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, and lower premiums in the secondary market.
Noninterest expense decreased $7.3 million for
the three months ended December 31, 2022 as compared to the same
period in 2021. The decrease was due primarily to a decrease in
compensation and benefits of $6.6 million. The decrease in
compensation and benefits expense was due primarily to a reduction
in staff and incentive compensation for the Company’s mortgage
banking segment as a result of decreased mortgage banking
income.
The Company recognized an income tax expense of
$83,000 for the three months ended December 31, 2022 compared to
tax expense of $811,000 for the same period in 2021. The effective
tax rate for 2022 was 2.8%, which was a decrease from the effective
tax rate of 15.9% in 2021. The decrease was due to recognition of
solar tax credits in 2022 and reduction of pre-tax net income in
2022 as compared to 2021.
Total assets increased $103.2 million, from
$2.09 billion at September 30, 2022 to $2.20 billion at December
31, 2022. Net loans held for investment increased $108.4 million
during the quarter ended December 31, 2022, due primarily to growth
in single-tenant net lease commercial real estate loans and
residential mortgage loans.
Total liabilities increased $94.6 million due
primarily to increases in total deposits, FHLB borrowings and other
borrowings of $22.0 million, $70.3 million and $7.3 million,
respectively. The increase in FHLB borrowings was primarily used to
fund loan growth. The increase in other borrowings represents
commercial loan transfers that were accounted for as secured
borrowings.
Common stockholders’ equity increased $8.6
million, from $151.6 million at September 30, 2022 to $160.1
million at December 31, 2022, due primarily to increases in
accumulated other comprehensive income and retained net income of
$8.1 million and $2.0 million, respectively. The increase in
accumulated other comprehensive income was primarily due to
decreasing market interest rates during the three months ended
December 31, 2022, which resulted in an increase in the fair value
of the available-for-sale securities portfolio. At December 31,
2022 and September 30, 2022, 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. |
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CONSOLIDATED FINANCIAL HIGHLIGHTS |
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(Unaudited) |
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* All share and per share amounts have been adjusted to reflect the
three-for-one stock split effective September 15, 2021. |
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Three Months Ended |
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OPERATING DATA: |
December 31, |
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(In thousands, except share and per share data) |
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2022 |
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2021 |
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Total interest income |
$ |
23,483 |
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$ |
15,762 |
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Total interest expense |
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7,222 |
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1,859 |
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Net interest income |
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16,261 |
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13,903 |
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Provision for loan losses |
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984 |
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526 |
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Net interest income after provision for loan losses |
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15,277 |
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13,377 |
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Total noninterest income |
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5,188 |
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16,591 |
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Total noninterest expense |
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17,511 |
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24,852 |
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Income before income taxes |
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2,954 |
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5,116 |
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Income tax expense |
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83 |
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811 |
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Net income |
$ |
2,871 |
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$ |
4,305 |
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Net income per share, basic |
$ |
0.42 |
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$ |
0.60 |
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Weighted average shares outstanding, basic |
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6,915,909 |
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7,116,790 |
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Net income per share, diluted |
$ |
0.41 |
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$ |
0.60 |
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Weighted average shares outstanding, diluted |
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6,972,055 |
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7,207,210 |
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Performance ratios (three-month data annualized) |
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Return on average assets |
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0.54 |
% |
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1.01 |
% |
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Return on average equity |
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7.50 |
% |
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9.45 |
% |
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Return on average common stockholders' equity |
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7.50 |
% |
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9.45 |
% |
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Net interest margin (tax equivalent basis) |
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3.41 |
% |
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3.73 |
% |
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Efficiency ratio |
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81.64 |
% |
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81.50 |
% |
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FINANCIAL CONDITION DATA: |
December 31, |
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September 30, |
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Increase |
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(In thousands, except per share data) |
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2022 |
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2022 |
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(Decrease) |
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(As Restated) |
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Total assets |
$ |
2,196,919 |
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$ |
2,093,725 |
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$ |
103,194 |
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Cash and cash equivalents |
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38,278 |
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41,665 |
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(3,387 |
) |
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Investment securities |
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330,683 |
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318,075 |
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12,608 |
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Loans held for sale |
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44,281 |
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60,462 |
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(16,181 |
) |
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Gross loans (1) |
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1,599,020 |
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1,489,904 |
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109,116 |
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Allowance for loan losses |
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16,080 |
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15,360 |
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720 |
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Interest earning assets |
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1,994,374 |
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1,898,051 |
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96,323 |
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Goodwill |
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9,848 |
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9,848 |
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- |
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Core deposit intangibles |
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721 |
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775 |
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(54 |
) |
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Loan servicing rights |
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65,598 |
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67,194 |
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(1,596 |
) |
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Noninterest-bearing deposits |
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315,390 |
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340,172 |
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(24,782 |
) |
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Interest-bearing deposits (2) |
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1,222,451 |
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1,175,662 |
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46,789 |
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Federal Home Loan Bank borrowings |
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377,643 |
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307,303 |
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70,340 |
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Subordinated debt and other borrowings, net of issuance costs |
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95,458 |
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88,206 |
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7,252 |
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Total liabilities |
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2,036,775 |
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1,942,160 |
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94,615 |
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Accumulated other comprehensive income (loss) |
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(19,000 |
) |
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(27,079 |
) |
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8,079 |
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Stockholders' equity, net of noncontrolling interests |
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160,144 |
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151,565 |
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8,579 |
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Book value per share |
$ |
23.15 |
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$ |
21.74 |
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$ |
1.41 |
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Tangible book value per share (3) |
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21.62 |
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20.22 |
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1.40 |
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Non-performing assets: |
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Nonaccrual loans - SBA guaranteed |
$ |
5,465 |
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$ |
5,474 |
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$ |
(9 |
) |
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Nonaccrual loans - unguaranteed |
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6,058 |
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5,382 |
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|
676 |
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Total nonaccrual loans |
$ |
11,523 |
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$ |
10,856 |
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$ |
667 |
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Accruing loans past due 90 days |
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- |
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- |
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- |
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Total non-performing loans |
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11,523 |
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10,856 |
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667 |
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Foreclosed real estate |
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- |
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- |
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- |
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Troubled debt restructurings classified as performing loans |
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2,580 |
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2,714 |
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(134 |
) |
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Total non-performing assets |
$ |
14,103 |
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$ |
13,570 |
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$ |
533 |
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Asset quality ratios: |
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Allowance for loan losses as a percent of total gross loans |
|
1.01 |
% |
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1.03 |
% |
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(0.02 |
%) |
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Allowance for loan losses as a percent of total gross loans,
excluding PPP loans (4) |
|
1.01 |
% |
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|
1.03 |
% |
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(0.02 |
%) |
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Allowance for loan losses as a percent of nonperforming loans |
|
139.55 |
% |
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|
141.49 |
% |
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(1.94 |
%) |
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Nonperforming loans as a percent of total gross loans |
|
0.72 |
% |
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|
0.73 |
% |
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(0.01 |
%) |
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Nonperforming assets as a percent of total assets |
|
0.64 |
% |
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|
0.65 |
% |
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(0.01 |
%) |
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(1) Includes $591,000 and $862,000 of PPP loans at December 31,
2022 and September 30, 2022, respectively. |
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(2) Includes $326.2 million and $292.5 million of brokered
certificates of deposit at December 31, 2022 and September 30,
2022, respectively. |
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(3) See reconciliation of GAAP and non-GAAP financial measures for
additional information relating to calculation of this item. |
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(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 |
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after eliminating PPP loans. |
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RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES
(UNAUDITED): |
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The following non-GAAP financial measures used by the Company
provide information useful to investors in understanding the
Company's |
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performance. The Company believes the financial measures presented
below are important because of their widespread use by investors as
a means to |
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|
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. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
Increase |
|
|
|
|
|
|
|
Tangible Book Value Per Share |
|
2022 |
|
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
(In thousands, except share and per share data) |
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity, net of noncontrolling interests (GAAP) |
$ |
160,144 |
|
|
$ |
151,565 |
|
|
$ |
8,579 |
|
|
|
|
|
|
|
|
Less: goodwill and core deposit intangibles |
|
(10,569 |
) |
|
|
(10,623 |
) |
|
|
54 |
|
|
|
|
|
|
|
|
Tangible equity (non-GAAP) |
$ |
149,575 |
|
|
$ |
140,942 |
|
|
|
8,633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding common shares |
|
6,917,921 |
|
|
|
6,970,631 |
|
|
|
(52,710 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value per share (non-GAAP) |
$ |
21.62 |
|
|
$ |
20.22 |
|
|
$ |
1.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share (GAAP) |
$ |
23.15 |
|
|
$ |
21.74 |
|
|
$ |
1.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): |
As of |
|
|
|
Summarized Consolidated Balance Sheets |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands, except per share data) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cash and cash equivalents |
$ |
38,278 |
|
|
$ |
41,665 |
|
|
$ |
37,468 |
|
|
$ |
31,105 |
|
|
$ |
40,592 |
|
|
|
|
Total investment securities |
|
330,683 |
|
|
|
318,075 |
|
|
|
309,027 |
|
|
|
284,674 |
|
|
|
220,926 |
|
|
|
|
Total loans held for sale |
|
44,281 |
|
|
|
60,462 |
|
|
|
188,031 |
|
|
|
152,652 |
|
|
|
161,218 |
|
|
|
|
Total loans, net of allowance for loan losses |
|
1,582,940 |
|
|
|
1,474,544 |
|
|
|
1,267,816 |
|
|
|
1,126,818 |
|
|
|
1,142,655 |
|
|
|
|
PPP loans |
|
591 |
|
|
|
862 |
|
|
|
1,766 |
|
|
|
13,415 |
|
|
|
46,020 |
|
|
|
|
Loan servicing rights |
|
65,598 |
|
|
|
67,194 |
|
|
|
69,039 |
|
|
|
68,267 |
|
|
|
59,187 |
|
|
|
|
Total assets |
|
2,196,919 |
|
|
|
2,093,725 |
|
|
|
2,006,666 |
|
|
|
1,801,944 |
|
|
|
1,764,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail deposits |
$ |
1,211,677 |
|
|
$ |
1,223,330 |
|
|
$ |
1,186,582 |
|
|
$ |
1,151,437 |
|
|
$ |
1,146,454 |
|
|
|
|
Brokered deposits |
|
326,164 |
|
|
|
292,504 |
|
|
|
159,125 |
|
|
|
69,752 |
|
|
|
120,581 |
|
|
|
|
Total deposits |
|
1,537,841 |
|
|
|
1,515,834 |
|
|
|
1,345,707 |
|
|
|
1,221,189 |
|
|
|
1,267,035 |
|
|
|
|
Federal Home Loan Bank borrowings |
|
377,643 |
|
|
|
307,303 |
|
|
|
404,098 |
|
|
|
296,592 |
|
|
|
258,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital |
$ |
27,425 |
|
|
$ |
26,848 |
|
|
$ |
27,236 |
|
|
$ |
27,154 |
|
|
$ |
27,073 |
|
|
|
|
Retained earnings - substantially restricted |
|
163,890 |
|
|
|
161,927 |
|
|
|
161,438 |
|
|
|
159,732 |
|
|
|
153,630 |
|
|
|
|
Accumulated other comprehensive income (loss) |
|
(19,000 |
) |
|
|
(27,079 |
) |
|
|
(12,560 |
) |
|
|
(1,336 |
) |
|
|
9,219 |
|
|
|
|
Unearned stock compensation |
|
(1,361 |
) |
|
|
(969 |
) |
|
|
(1,075 |
) |
|
|
(1,180 |
) |
|
|
(1,285 |
) |
|
|
|
Less treasury stock, at cost |
|
(10,810 |
) |
|
|
(9,162 |
) |
|
|
(5,826 |
) |
|
|
(4,417 |
) |
|
|
(4,417 |
) |
|
|
|
Total stockholders' equity |
|
160,144 |
|
|
|
151,565 |
|
|
|
169,213 |
|
|
|
179,953 |
|
|
|
184,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding common shares |
|
6,917,921 |
|
|
|
6,970,631 |
|
|
|
7,110,706 |
|
|
|
7,169,826 |
|
|
|
7,169,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
|
|
|
Summarized Consolidated Statements of Income |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands, except per share data) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
$ |
23,483 |
|
|
$ |
21,152 |
|
|
$ |
18,479 |
|
|
$ |
15,801 |
|
|
$ |
15,762 |
|
|
|
|
Total interest expense |
|
7,222 |
|
|
|
4,327 |
|
|
|
2,568 |
|
|
|
1,788 |
|
|
|
1,859 |
|
|
|
|
Net interest income |
|
16,261 |
|
|
|
16,825 |
|
|
|
15,911 |
|
|
|
14,013 |
|
|
|
13,903 |
|
|
|
|
Provision (credit) for loan losses |
|
984 |
|
|
|
880 |
|
|
|
532 |
|
|
|
(30 |
) |
|
|
526 |
|
|
|
|
Net interest income after provision (credit) for loan losses |
|
15,277 |
|
|
|
15,945 |
|
|
|
15,379 |
|
|
|
14,043 |
|
|
|
13,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total noninterest income |
|
5,188 |
|
|
|
4,531 |
|
|
|
10,033 |
|
|
|
20,072 |
|
|
|
16,591 |
|
|
|
|
Total noninterest expense |
|
17,511 |
|
|
|
19,514 |
|
|
|
22,835 |
|
|
|
25,461 |
|
|
|
24,852 |
|
|
|
|
Income before income taxes |
|
2,954 |
|
|
|
962 |
|
|
|
2,577 |
|
|
|
8,654 |
|
|
|
5,116 |
|
|
|
|
Income tax expense (benefit) |
|
83 |
|
|
|
(446 |
) |
|
|
(61 |
) |
|
|
1,619 |
|
|
|
811 |
|
|
|
|
Net income |
$ |
2,871 |
|
|
$ |
1,408 |
|
|
$ |
2,638 |
|
|
$ |
7,035 |
|
|
$ |
4,305 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic |
$ |
0.42 |
|
|
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.99 |
|
|
$ |
0.60 |
|
|
|
|
Weighted average shares outstanding, basic |
|
6,915,909 |
|
|
|
6,988,873 |
|
|
|
7,073,204 |
|
|
|
7,076,355 |
|
|
|
7,116,790 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, diluted |
$ |
0.41 |
|
|
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.98 |
|
|
$ |
0.60 |
|
|
|
|
Weighted average shares outstanding, diluted |
|
6,972,055 |
|
|
|
7,056,138 |
|
|
|
7,145,288 |
|
|
|
7,156,229 |
|
|
|
7,207,210 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
Consolidated Performance Ratios (Annualized) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.54 |
% |
|
|
0.28 |
% |
|
|
0.55 |
% |
|
|
1.61 |
% |
|
|
1.01 |
% |
|
|
|
Return on average equity |
|
7.50 |
% |
|
|
3.30 |
% |
|
|
6.06 |
% |
|
|
15.24 |
% |
|
|
9.45 |
% |
|
|
|
Return on average common stockholders' equity |
|
7.50 |
% |
|
|
3.30 |
% |
|
|
6.06 |
% |
|
|
15.24 |
% |
|
|
9.45 |
% |
|
|
|
Net interest margin (tax equivalent basis) |
|
3.41 |
% |
|
|
3.75 |
% |
|
|
3.77 |
% |
|
|
3.68 |
% |
|
|
3.73 |
% |
|
|
|
Efficiency ratio |
|
81.64 |
% |
|
|
91.37 |
% |
|
|
88.02 |
% |
|
|
74.70 |
% |
|
|
81.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the Three Months Ended |
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
Consolidated Asset Quality Ratios |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a percentage of total loans |
|
0.72 |
% |
|
|
0.73 |
% |
|
|
0.77 |
% |
|
|
0.88 |
% |
|
|
1.10 |
% |
|
|
|
Nonperforming assets as a percentage of total assets |
|
0.64 |
% |
|
|
0.65 |
% |
|
|
0.63 |
% |
|
|
0.73 |
% |
|
|
0.82 |
% |
|
|
|
Allowance for loan losses as a percentage of total loans |
|
1.01 |
% |
|
|
1.03 |
% |
|
|
1.17 |
% |
|
|
1.27 |
% |
|
|
1.28 |
% |
|
|
|
Allowance for loan losses as a percentage of nonperforming
loans |
|
139.55 |
% |
|
|
141.49 |
% |
|
|
151.59 |
% |
|
|
143.94 |
% |
|
|
116.12 |
% |
|
|
|
Net charge-offs to average outstanding loans |
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
|
|
|
Segmented Statements of Income Information |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands, except per share data) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
Core Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
15,008 |
|
|
$ |
14,994 |
|
|
$ |
13,848 |
|
|
$ |
11,847 |
|
|
$ |
11,495 |
|
|
|
|
Provision (credit) for loan losses |
|
701 |
|
|
|
769 |
|
|
|
910 |
|
|
|
(240 |
) |
|
|
(144 |
) |
|
|
|
Net interest income after provision (credit) for loan losses |
|
14,307 |
|
|
|
14,225 |
|
|
|
12,938 |
|
|
|
12,087 |
|
|
|
11,639 |
|
|
|
|
Noninterest income |
|
1,928 |
|
|
|
1,808 |
|
|
|
2,379 |
|
|
|
2,163 |
|
|
|
1,942 |
|
|
|
|
Noninterest expense |
|
9,797 |
|
|
|
10,499 |
|
|
|
10,187 |
|
|
|
9,811 |
|
|
|
9,482 |
|
|
|
|
Income before income taxes |
|
6,438 |
|
|
|
5,534 |
|
|
|
5,130 |
|
|
|
4,439 |
|
|
|
4,099 |
|
|
|
|
Income tax expense |
|
946 |
|
|
|
735 |
|
|
|
568 |
|
|
|
330 |
|
|
|
500 |
|
|
|
|
Net income |
$ |
5,492 |
|
|
$ |
4,799 |
|
|
$ |
4,562 |
|
|
$ |
4,109 |
|
|
$ |
3,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBA Lending Segment (Q2): |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (5) |
$ |
995 |
|
|
$ |
1,182 |
|
|
$ |
1,449 |
|
|
$ |
1,602 |
|
|
$ |
1,875 |
|
|
|
|
Provision (credit) for loan losses |
|
283 |
|
|
|
111 |
|
|
|
(378 |
) |
|
|
210 |
|
|
|
670 |
|
|
|
|
Net interest income after provision (credit) for loan losses |
|
712 |
|
|
|
1,071 |
|
|
|
1,827 |
|
|
|
1,392 |
|
|
|
1,205 |
|
|
|
|
Noninterest income |
|
754 |
|
|
|
480 |
|
|
|
584 |
|
|
|
1,658 |
|
|
|
1,901 |
|
|
|
|
Noninterest expense |
|
1,924 |
|
|
|
1,891 |
|
|
|
2,341 |
|
|
|
2,253 |
|
|
|
2,236 |
|
|
|
|
Income (loss) before income taxes |
|
(458 |
) |
|
|
(340 |
) |
|
|
70 |
|
|
|
797 |
|
|
|
870 |
|
|
|
|
Income tax expense (benefit) |
|
(107 |
) |
|
|
(123 |
) |
|
|
26 |
|
|
|
240 |
|
|
|
265 |
|
|
|
|
Net income (loss) (6) |
$ |
(351 |
) |
|
$ |
(217 |
) |
|
$ |
44 |
|
|
$ |
557 |
|
|
$ |
605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
258 |
|
|
$ |
649 |
|
|
$ |
614 |
|
|
$ |
564 |
|
|
$ |
533 |
|
|
|
|
Provision for loan losses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
Net interest income after provision for loan losses |
|
258 |
|
|
|
649 |
|
|
|
614 |
|
|
|
564 |
|
|
|
533 |
|
|
|
|
Noninterest income |
|
2,506 |
|
|
|
2,243 |
|
|
|
7,070 |
|
|
|
16,251 |
|
|
|
12,748 |
|
|
|
|
Noninterest expense |
|
5,790 |
|
|
|
7,124 |
|
|
|
10,307 |
|
|
|
13,397 |
|
|
|
13,134 |
|
|
|
|
Income (loss) before income taxes |
|
(3,026 |
) |
|
|
(4,232 |
) |
|
|
(2,623 |
) |
|
|
3,418 |
|
|
|
147 |
|
|
|
|
Income tax expense (benefit) |
|
(756 |
) |
|
|
(1,058 |
) |
|
|
(655 |
) |
|
|
1,049 |
|
|
|
46 |
|
|
|
|
Net income (loss) |
$ |
(2,270 |
) |
|
$ |
(3,174 |
) |
|
$ |
(1,968 |
) |
|
$ |
2,369 |
|
|
$ |
101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Includes net interest income derived from PPP loans of: |
$ |
1 |
|
|
$ |
16 |
|
|
$ |
173 |
|
|
$ |
239 |
|
|
$ |
550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) Includes net income attributable to the Company derived from
PPP loans (tax effected) of: |
$ |
1 |
|
|
$ |
12 |
|
|
$ |
130 |
|
|
$ |
179 |
|
|
$ |
413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
|
|
|
Segmented Statements of Income Information |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands, except per share data) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share by Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, basic - Core Banking |
$ |
0.80 |
|
|
$ |
0.68 |
|
|
$ |
0.64 |
|
|
$ |
0.58 |
|
|
$ |
0.50 |
|
|
|
|
Net income (loss) per share, basic - SBA Lending (Q2) (7) |
|
(0.05 |
) |
|
|
(0.03 |
) |
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.09 |
|
|
|
|
Net income (loss) per share, basic - Mortgage Banking |
|
(0.33 |
) |
|
|
(0.45 |
) |
|
|
(0.28 |
) |
|
|
0.33 |
|
|
|
0.01 |
|
|
|
|
Total net income per share, basic (8) |
$ |
0.42 |
|
|
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.99 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) Per Diluted Share by
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share, diluted - Core Banking |
$ |
0.79 |
|
|
$ |
0.68 |
|
|
$ |
0.64 |
|
|
$ |
0.57 |
|
|
$ |
0.50 |
|
|
|
|
Net income (loss) per share, diluted - SBA Lending (Q2) (8) |
|
(0.05 |
) |
|
|
(0.03 |
) |
|
|
0.01 |
|
|
|
0.08 |
|
|
|
0.09 |
|
|
|
|
Net income (loss) per share, diluted - Mortgage Banking |
|
(0.33 |
) |
|
|
(0.45 |
) |
|
|
(0.28 |
) |
|
|
0.33 |
|
|
|
0.01 |
|
|
|
|
Total net income per share, diluted (8) |
$ |
0.41 |
|
|
$ |
0.20 |
|
|
$ |
0.37 |
|
|
$ |
0.98 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets by Segment (three-month data
annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
Core Banking |
|
1.17 |
% |
|
|
1.08 |
% |
|
|
1.12 |
% |
|
|
1.14 |
% |
|
|
1.05 |
% |
|
|
|
SBA Lending |
|
(1.38 |
%) |
|
|
(0.85 |
%) |
|
|
0.17 |
% |
|
|
1.80 |
% |
|
|
1.55 |
% |
|
|
|
Mortgage Banking |
|
(9.31 |
%) |
|
|
(9.44 |
%) |
|
|
(4.50 |
%) |
|
|
5.38 |
% |
|
|
0.23 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio by Segment (three-month data
annualized) |
|
|
|
|
|
|
|
|
|
|
|
|
Core Banking |
|
57.85 |
% |
|
|
62.49 |
% |
|
|
62.78 |
% |
|
|
70.03 |
% |
|
|
70.57 |
% |
|
|
|
SBA Lending |
|
110.01 |
% |
|
|
113.78 |
% |
|
|
115.15 |
% |
|
|
69.11 |
% |
|
|
59.22 |
% |
|
|
|
Mortgage Banking |
|
209.48 |
% |
|
|
246.33 |
% |
|
|
134.14 |
% |
|
|
79.67 |
% |
|
|
98.89 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) Includes basic net income per share derived from PPP loans (tax
effected) of: |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8) Includes diluted net income per share derived from PPP loans
(tax effected) of: |
$ |
0.00 |
|
|
$ |
0.00 |
|
|
$ |
0.02 |
|
|
$ |
0.03 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
|
|
|
Noninterest Expense Detail by Segment |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
Core Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation (9) |
$ |
5,275 |
|
|
$ |
4,444 |
|
|
$ |
5,995 |
|
|
$ |
5,207 |
|
|
$ |
5,776 |
|
|
|
|
Occupancy |
|
1,443 |
|
|
|
1,374 |
|
|
|
1,412 |
|
|
|
1,393 |
|
|
|
1,357 |
|
|
|
|
Advertising |
|
213 |
|
|
|
272 |
|
|
|
284 |
|
|
|
297 |
|
|
|
232 |
|
|
|
|
Other |
|
2,866 |
|
|
|
4,409 |
|
|
|
2,496 |
|
|
|
2,914 |
|
|
|
2,117 |
|
|
|
|
Total Noninterest Expense |
$ |
9,797 |
|
|
$ |
10,499 |
|
|
$ |
10,187 |
|
|
$ |
9,811 |
|
|
$ |
9,482 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SBA Lending Segment (Q2): |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
$ |
1,622 |
|
|
$ |
1,690 |
|
|
$ |
1,619 |
|
|
$ |
1,724 |
|
|
$ |
1,685 |
|
|
|
|
Occupancy |
|
54 |
|
|
|
41 |
|
|
|
60 |
|
|
|
64 |
|
|
|
78 |
|
|
|
|
Advertising |
|
2 |
|
|
|
8 |
|
|
|
3 |
|
|
|
9 |
|
|
|
9 |
|
|
|
|
Other |
|
246 |
|
|
|
152 |
|
|
|
659 |
|
|
|
456 |
|
|
|
464 |
|
|
|
|
Total Noninterest Expense |
$ |
1,924 |
|
|
$ |
1,891 |
|
|
$ |
2,341 |
|
|
$ |
2,253 |
|
|
$ |
2,236 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Banking Segment: |
|
|
|
|
|
|
|
|
|
|
|
|
Compensation (9) |
$ |
3,788 |
|
|
$ |
5,091 |
|
|
$ |
7,601 |
|
|
$ |
10,292 |
|
|
$ |
9,867 |
|
|
|
|
Occupancy |
|
363 |
|
|
|
491 |
|
|
|
597 |
|
|
|
622 |
|
|
|
678 |
|
|
|
|
Advertising |
|
203 |
|
|
|
319 |
|
|
|
519 |
|
|
|
696 |
|
|
|
551 |
|
|
|
|
Other |
|
1,436 |
|
|
|
1,223 |
|
|
|
1,590 |
|
|
|
1,787 |
|
|
|
2,038 |
|
|
|
|
Total Noninterest Expense |
$ |
5,790 |
|
|
$ |
7,124 |
|
|
$ |
10,307 |
|
|
$ |
13,397 |
|
|
$ |
13,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(9) Compensation includes increases for Core Banking and
corresponding decreases for 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: |
$ |
1,192 |
|
|
$ |
945 |
|
|
$ |
1,164 |
|
|
$ |
869 |
|
|
$ |
975 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
Mortgage Banking Noninterest Expense Fixed vs.
Variable |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest Expense - Fixed Expenses |
$ |
4,561 |
|
|
$ |
5,724 |
|
|
$ |
6,989 |
|
|
$ |
7,936 |
|
|
$ |
7,752 |
|
|
|
|
Noninterest Expense - Variable Expenses (10) |
|
1,229 |
|
|
|
1,400 |
|
|
|
3,318 |
|
|
|
5,461 |
|
|
|
5,382 |
|
|
|
|
Total Noninterest Expense |
$ |
5,790 |
|
12,202 |
$ |
7,124 |
|
12,202 |
$ |
10,307 |
|
12,202 |
$ |
13,397 |
|
12,202 |
$ |
13,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
SBA Lending (Q2) Data |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands, except percentage data) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
Final funded loans guaranteed portion sold, SBA |
$ |
11,293 |
|
|
$ |
3,772 |
|
|
$ |
5,364 |
|
|
$ |
14,355 |
|
|
$ |
14,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross gain on sales of loans, SBA |
$ |
936 |
|
|
$ |
393 |
|
|
$ |
592 |
|
|
$ |
1,670 |
|
|
$ |
1,841 |
|
|
|
|
Weighted average gross gain on sales of loans, SBA |
|
8.29 |
% |
|
|
10.42 |
% |
|
|
11.04 |
% |
|
|
11.63 |
% |
|
|
13.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on sales of loans, SBA (11) |
$ |
775 |
|
|
$ |
249 |
|
|
$ |
486 |
|
|
$ |
1,327 |
|
|
$ |
1,636 |
|
|
|
|
Weighted average net gain on sales of loans, SBA |
|
6.86 |
% |
|
|
6.60 |
% |
|
|
9.06 |
% |
|
|
9.24 |
% |
|
|
11.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
Mortgage Banking Data |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands, except percentage data) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage originations for sale in the secondary market |
$ |
77,605 |
|
|
$ |
185,981 |
|
|
$ |
421,426 |
|
|
$ |
459,434 |
|
|
$ |
541,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage sales |
$ |
96,177 |
|
|
$ |
241,804 |
|
|
$ |
426,200 |
|
|
$ |
478,816 |
|
|
$ |
587,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross gain on sales of loans, mortgage banking (12) |
$ |
1,217 |
|
|
$ |
2,630 |
|
|
$ |
7,419 |
|
|
$ |
10,988 |
|
|
$ |
11,082 |
|
|
|
|
Weighted average gross gain on sales of loans, mortgage
banking |
|
1.27 |
% |
|
|
1.09 |
% |
|
|
1.74 |
% |
|
|
2.29 |
% |
|
|
1.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage banking income (13) |
$ |
2,496 |
|
|
$ |
2,246 |
|
|
$ |
7,093 |
|
|
$ |
16,254 |
|
|
$ |
12,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(10) Variable expenses include 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 |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
Interest-earning assets |
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
Average balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
$ |
19,379 |
|
|
$ |
28,318 |
|
|
$ |
25,068 |
|
|
$ |
36,029 |
|
|
$ |
33,065 |
|
|
|
|
Loans, excluding PPP loans |
|
1,582,538 |
|
|
|
1,477,857 |
|
|
|
1,381,366 |
|
|
|
1,268,983 |
|
|
|
1,221,879 |
|
|
|
|
PPP loans |
|
644 |
|
|
|
1,310 |
|
|
|
4,271 |
|
|
|
22,066 |
|
|
|
51,178 |
|
|
|
|
Investment securities - taxable |
|
111,936 |
|
|
|
94,836 |
|
|
|
103,536 |
|
|
|
50,165 |
|
|
|
47,717 |
|
|
|
|
Investment securities - nontaxable |
|
241,504 |
|
|
|
230,312 |
|
|
|
202,534 |
|
|
|
163,472 |
|
|
|
153,452 |
|
|
|
|
FRB and FHLB stock |
|
20,063 |
|
|
|
19,890 |
|
|
|
18,691 |
|
|
|
19,021 |
|
|
|
19,258 |
|
|
|
|
Total interest-earning assets |
$ |
1,976,064 |
|
|
$ |
1,852,523 |
|
|
$ |
1,735,466 |
|
|
$ |
1,559,736 |
|
|
$ |
1,526,549 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (tax equivalent basis): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
$ |
144 |
|
|
$ |
97 |
|
|
$ |
37 |
|
|
$ |
13 |
|
|
$ |
14 |
|
|
|
|
Loans, excluding PPP loans |
|
20,219 |
|
|
|
18,012 |
|
|
|
15,788 |
|
|
|
13,745 |
|
|
|
13,424 |
|
|
|
|
PPP loans |
|
3 |
|
|
|
17 |
|
|
|
177 |
|
|
|
258 |
|
|
|
595 |
|
|
|
|
Investment securities - taxable |
|
955 |
|
|
|
740 |
|
|
|
769 |
|
|
|
420 |
|
|
|
405 |
|
|
|
|
Investment securities - nontaxable |
|
2,505 |
|
|
|
2,352 |
|
|
|
1,987 |
|
|
|
1,571 |
|
|
|
1,509 |
|
|
|
|
FRB and FHLB stock |
|
220 |
|
|
|
265 |
|
|
|
169 |
|
|
|
146 |
|
|
|
149 |
|
|
|
|
Total interest income (tax equivalent basis) |
$ |
24,046 |
|
|
$ |
21,483 |
|
|
$ |
18,927 |
|
|
$ |
16,153 |
|
|
$ |
16,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average yield (tax equivalent basis, annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
|
2.97 |
% |
|
|
1.37 |
% |
|
|
0.59 |
% |
|
|
0.14 |
% |
|
|
0.17 |
% |
|
|
|
Loans, excluding PPP loans |
|
5.11 |
% |
|
|
4.88 |
% |
|
|
4.57 |
% |
|
|
4.33 |
% |
|
|
4.39 |
% |
|
|
|
PPP loans |
|
1.86 |
% |
|
|
5.19 |
% |
|
|
16.58 |
% |
|
|
4.68 |
% |
|
|
4.65 |
% |
|
|
|
Investment securities - taxable |
|
3.41 |
% |
|
|
3.12 |
% |
|
|
2.97 |
% |
|
|
3.35 |
% |
|
|
3.40 |
% |
|
|
|
Investment securities - nontaxable |
|
4.15 |
% |
|
|
4.08 |
% |
|
|
3.92 |
% |
|
|
3.84 |
% |
|
|
3.93 |
% |
|
|
|
FRB and FHLB stock |
|
4.39 |
% |
|
|
5.33 |
% |
|
|
3.62 |
% |
|
|
3.07 |
% |
|
|
3.09 |
% |
|
|
|
Total interest-earning assets |
|
4.87 |
% |
|
|
4.64 |
% |
|
|
4.36 |
% |
|
|
4.14 |
% |
|
|
4.22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
|
|
|
Summarized Consolidated Average Balance
Sheets |
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
(In thousands) |
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
Interest-bearing liabilities |
|
|
(As Restated) |
|
|
|
|
|
|
|
|
|
Average balances: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,213,419 |
|
|
$ |
1,125,659 |
|
|
$ |
998,868 |
|
|
$ |
922,137 |
|
|
$ |
913,297 |
|
|
|
|
Federal Home Loan Bank borrowings |
|
311,146 |
|
|
|
301,027 |
|
|
|
325,460 |
|
|
|
280,190 |
|
|
|
264,617 |
|
|
|
|
Subordinated debt and other borrowings |
|
88,304 |
|
|
|
50,179 |
|
|
|
50,152 |
|
|
|
24,592 |
|
|
|
19,870 |
|
|
|
|
Total interest-bearing liabilities |
$ |
1,612,869 |
|
|
$ |
1,476,865 |
|
|
$ |
1,374,480 |
|
|
$ |
1,226,919 |
|
|
$ |
1,197,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
4,158 |
|
|
$ |
2,306 |
|
|
$ |
1,047 |
|
|
$ |
738 |
|
|
$ |
811 |
|
|
|
|
Federal Home Loan Bank borrowings |
|
1,919 |
|
|
|
1,111 |
|
|
|
811 |
|
|
|
681 |
|
|
|
730 |
|
|
|
|
Subordinated debt and other borrowings |
|
1,145 |
|
|
|
714 |
|
|
|
710 |
|
|
|
369 |
|
|
|
318 |
|
|
|
|
Total interest expense |
$ |
7,222 |
|
|
$ |
4,131 |
|
|
$ |
2,568 |
|
|
$ |
1,788 |
|
|
$ |
1,859 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average cost (annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
1.37 |
% |
|
|
0.82 |
% |
|
|
0.42 |
% |
|
|
0.32 |
% |
|
|
0.36 |
% |
|
|
|
Federal Home Loan Bank borrowings |
|
2.47 |
% |
|
|
1.48 |
% |
|
|
1.00 |
% |
|
|
0.97 |
% |
|
|
1.10 |
% |
|
|
|
Subordinated debt and other borrowings |
|
5.19 |
% |
|
|
5.69 |
% |
|
|
5.66 |
% |
|
|
6.00 |
% |
|
|
6.40 |
% |
|
|
|
Total interest-bearing liabilities |
|
1.79 |
% |
|
|
1.12 |
% |
|
|
0.75 |
% |
|
|
0.58 |
% |
|
|
0.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate spread (tax equivalent basis, annualized) |
|
3.08 |
% |
|
|
3.52 |
% |
|
|
3.61 |
% |
|
|
3.56 |
% |
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (tax equivalent basis, annualized) |
|
3.41 |
% |
|
|
3.75 |
% |
|
|
3.77 |
% |
|
|
3.68 |
% |
|
|
3.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin, excluding PPP loans and PPPLF borrowings
(non-GAAP), (tax equivalent basis, annualized) |
|
3.41 |
% |
|
|
3.75 |
% |
|
|
3.74 |
% |
|
|
3.67 |
% |
|
|
3.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|