First Savings Financial Group, Inc. Reports Financial

JEFFERSONVILLE, Ind., Oct. 28, 2021 (Globalrelease Wire) — First Savings Financial Group, Inc. (NASDAQ: FSFG – news) (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $29.6 million, or $4.12 per diluted share, for the year ended September 30, 2021 compared to net income of $33.4 million, or $4.68 per diluted share, for the year ended September 30, 2020.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Common stockholders’ equity increased $23.1 million, from $157.3 million at September 30, 2020 to $180.4 million at September 30, 2021, due primarily to retained net income of $27.0 million, partially offset by decreases in net unrealized gains on available for sale securities included in accumulated other comprehensive income of $2.3 million and additional paid in capital of $1.8 million, which was due to the acquisition of the minority interests in Q2 Business Capital, LLC on December 31, 2020. At September 30, 2021 and September 30, 2020, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

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

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

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

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

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

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

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

(3) See reconciliation of GAAP and Non-GAAP financial measures for additional information relating to calculation of this item.

(4) Denominator excludes PPP loans, which are fully guaranteed by the SBA. This ratio is non-GAAP, but is believed by management to be meaningful because it provides a comparable ratio after eliminating PPP loans.

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.

  September 30,   September 30,   Increase        
Tangible Book Value Per Share   2021       2020     (Decrease)        
(In thousands, except share and per share data)                  
                   
Stockholders’ equity, net of noncontrolling interests (GAAP) $ 180,377     $ 157,272     $ 23,105          
Less: goodwill and core deposit intangibles   (10,836 )     (11,050 )     214          
Tangible equity (non-GAAP) $ 169,541     $ 146,222     $ 109,789          
                   
Outstanding common shares   7,125,888       7,125,972       (84 )        
                   
Tangible book value per share (non-GAAP) $ 23.79     $ 20.52     $ 3.27          
                   
Book value per share (GAAP) $ 25.31     $ 22.07     $ 3.24          
                   
                   
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): As of
Summarized Consolidated Balance Sheets September 30,   June 30,   March 31,   December 31,   September 30,
(In thousands, except per share data)   2021       2021       2021       2020       2020  
Total cash and cash equivalents $ 33,428     $ 22,909     $ 30,837     $ 35,392     $ 33,726  
Total investment securities   208,518       209,551       207,331       205,661       204,067  
Total loans held for sale   214,940       277,374       207,141       357,242       285,525  
Total loans, net of allowance for loan losses   1,075,936       1,065,852       1,128,348       1,114,708       1,090,063  
PPP loans   56,656       100,573       159,320       178,499       180,561  
Loan servicing rights   54,026       51,778       49,367       35,232       25,451  
Total assets   1,720,506       1,758,628       1,750,609       1,872,911       1,764,625  
                   
Total deposits $ 1,227,580     $ 1,127,155     $ 1,095,496     $ 1,121,320     $ 1,048,076  
Federal Home Loan Bank borrowings   250,000       283,289       289,237       340,092       310,858  
Federal Reserve PPPLF borrowings         107,829       128,494       172,772       174,834  
                   
Stockholders’ equity, net of noncontrolling interests $ 180,377     $ 177,735     $ 173,040     $ 165,745     $ 157,272  
Noncontrolling interests in subsidiary                           293  
Total equity   180,377       177,735       173,040       165,745       157,565  
                   
Outstanding common shares   7,125,888       7,124,388       7,125,081       7,124,781       7,125,972  
                   
  Three Months Ended
Summarized Consolidated Statements of Income September 30,   June 30,   March 31,   December 31,   September 30,
(In thousands, except per share data)   2021       2021       2021       2020       2020  
Total interest income $ 16,243     $ 16,150     $ 16,840     $ 16,026     $ 15,765  
Total interest expense   1,819       1,921       2,060       2,287       2,337  
Net interest income   14,424       14,229       14,780       13,739       13,428  
Provision (credit) for loan losses   8       (2,730 )     287       668       2,772  
Net interest income after provision for loan losses   14,416       16,959       14,493       13,071       10,656  
                   
Total noninterest income   16,495       18,785       38,973       46,183       57,024  
Total noninterest expense   25,104       30,619       39,284       44,402       44,452  
Income before income taxes   5,807       5,125       14,182       14,852       23,228  
Income tax expense   958       817       3,695       4,527       7,257  
Net income   4,849       4,308       10,487       10,325       15,971  
Less: net income attributable to noncontrolling interests                     402       834  
Net income attributable to the Company $ 4,849     $ 4,308     $ 10,487     $ 9,923     $ 15,137  
                   
                   
Net income per share, basic $ 0.68     $ 0.61     $ 1.48     $ 1.40     $ 2.13  
Weighted average shares outstanding, basic   7,111,594       7,109,481       7,108,926       7,101,183       7,095,651  
                   
Net income per share, diluted $ 0.67     $ 0.60     $ 1.46     $ 1.39     $ 2.13  
Weighted average shares outstanding, diluted   7,200,357       7,178,943       7,164,189       7,154,106       7,112,082  
                   
  Three Months Ended
  September 30,   June 30,   March 31,   December 31,   September 30,
Consolidated Performance Ratios (Annualized)   2021       2021       2021       2020       2020  
Return on average assets   1.12 %     1.00 %     2.34 %     2.23 %     3.44 %
Return on average equity   10.92 %     9.94 %     24.97 %     25.43 %     43.46 %
Return on average common stockholders’ equity   10.92 %     9.94 %     24.97 %     24.52 %     41.08 %
Net interest margin (tax equivalent basis)   3.79 %     3.75 %     3.69 %     3.46 %     3.40 %
Efficiency ratio   81.19 %     92.75 %     73.08 %     74.10 %     63.10 %
                   
                   
  As of or for the Three Months Ended
  September 30,   June 30,   March 31,   December 31,   September 30,
Consolidated Asset Quality Ratios   2021       2021       2021       2020       2020  
Nonperforming loans as a percentage of total loans   1.42 %     1.15 %     1.00 %     1.10 %     1.23 %
Nonperforming assets as a percentage of total assets   1.00 %     0.81 %     0.78 %     0.78 %     0.95 %
Allowance for loan losses as a percentage of total loans   1.31 %     1.36 %     1.52 %     1.51 %     1.54 %
Allowance for loan losses as a percentage of nonperforming loans   92.43 %     117.88 %     152.72 %     138.02 %     125.05 %
Net charge-offs to average outstanding loans   0.03 %     0.00 %     0.00 %     0.04 %     0.03 %
                                       
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
Segmented Statements of Income Information September 30,   June 30,   March 31,   December 31,   September 30,
(In thousands, except per share data)   2021       2021       2021       2020       2020  
Core Banking Segment:                  
Net interest income $ 11,517     $ 11,401     $ 11,114     $ 10,861     $ 10,512  
Provision (credit) for loan losses   (189 )     (2,401 )     106       702       2,232  
Net interest income after provision (credit) for loan losses   11,706       13,802       11,008       10,159       8,280  
Noninterest income   1,780       1,509       1,490       1,552       1,779  
Noninterest expense   8,800       9,364       8,991       8,112       7,920  
Income before income taxes   4,686       5,947       3,507       3,599       2,139  
Income tax expense   569       792       507       570       482  
Net income attributable to the Company $ 4,117     $ 5,155     $ 3,000     $ 3,029     $ 1,657  
                   
SBA Lending Segment (Q2):                  
Net interest income (5) $ 2,455     $ 2,510     $ 3,227     $ 2,147     $ 1,959  
Provision (credit) for loan losses   197       (329 )     181       (34 )     540  
Net interest income after provision (credit) for loan losses   2,258       2,839       3,046       2,181       1,419  
Noninterest income   2,194       2,675       3,407       1,385       2,828  
Noninterest expense   1,973       2,206       2,449       2,746       2,545  
Income before income taxes   2,479       3,308       4,004       820       1,702  
Income tax expense   612       790       1,005       105       217  
Net income   1,867       2,518       2,999       715       1,485  
Less: net income attributable to noncontrolling interests                     402       834  
Net income attributable to the Company (6) $ 1,867     $ 2,518     $ 2,999     $ 313     $ 651  
                   
Mortgage Banking Segment:                  
Net interest income $ 452     $ 318     $ 439     $ 731     $ 957  
Provision for loan losses                            
Net interest income after provision for loan losses   452       318       439       731       957  
Noninterest income   12,521       14,601       34,076       43,246       52,417  
Noninterest expense   14,331       19,049       27,844       33,544       33,987  
Income (loss) before income taxes   (1,358 )     (4,130 )     6,671       10,433       19,387  
Income tax expense (benefit)   (223 )     (765 )     2,183       3,852       6,558  
Net income (loss) attributable to the Company $ (1,135 )   $ (3,365 )   $ 4,488     $ 6,581     $ 12,829  
                   
Net Income (Loss) Per Share by Segment                  
Net income per share, basic – Core Banking $ 0.58     $ 0.73     $ 0.42     $ 0.43     $ 0.23  
Net income per share, basic – SBA Lending (Q2) (7)   0.26       0.35       0.42       0.04       0.09  
Net income (loss) per share, basic – Mortgage Banking   (0.16 )     (0.47 )     0.64       0.93       1.81  
Total net income per share, basic (7) $ 0.68     $ 0.61     $ 1.48     $ 1.40     $ 2.13  
                   
Net Income (Loss) Per Diluted Share by Segment                  
Net income per share, diluted – Core Banking $ 0.57     $ 0.72     $ 0.42     $ 0.42     $ 0.23  
Net income per share, diluted – SBA Lending (Q2) (8)   0.26       0.35       0.42       0.04       0.09  
Net income (loss) per share, diluted – Mortgage Banking   (0.16 )     (0.47 )     0.62       0.93       1.81  
Total net income per share, diluted (8) $ 0.67     $ 0.60     $ 1.46     $ 1.39     $ 2.13  
                   
(5) Includes net interest income derived from PPP loans of: $ 1,145     $ 1,220     $ 1,887     $ 928     $ 861  
                   
(6) Includes net income attributable to the Company derived from PPP loans (tax effected) of: $ 859     $ 915     $ 1,415     $ 810     $ 751  
                   
(7) Includes basic net income per share derived from PPP loans (tax effected) of: $ 0.12     $ 0.13     $ 0.20     $ 0.11     $ 0.11  
                   
(8) Includes diluted net income per share derived from PPP loans (tax effected) of: $ 0.12     $ 0.13     $ 0.20     $ 0.11     $ 0.11  
                   
                   
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
Noninterest Expense Detail by Segment September 30,   June 30,   March 31,   December 31,   September 30,
(In thousands)   2021       2021       2021       2020       2020  
Core Banking Segment:                  
Compensation $ 5,220     $ 5,039     $ 4,895     $ 4,127     $ 4,250  
Occupancy   1,415       1,473       1,387       1,392       1,512  
Advertising   268       213       248       177       225  
Other   1,897       2,639       2,461       2,416       1,933  
Total Noninterest Expense $ 8,800     $ 9,364     $ 8,991     $ 8,112     $ 7,920  
                   
SBA Lending Segment (Q2):                  
Compensation $ 1,602     $ 1,697     $ 1,929     $ 2,280     $ 1,939  
Occupancy   83       101       129       93       116  
Advertising   6       3       8       10       6  
Other   282       405       383       363       484  
Total Noninterest Expense $ 1,973     $ 2,206     $ 2,449     $ 2,746     $ 2,545  
                   
Mortgage Banking Segment:                  
Compensation $ 11,456     $ 14,594     $ 22,657     $ 27,455     $ 27,092  
Occupancy   723       1,012       998       1,100       1,207  
Advertising   588       1,133       1,796       2,124       2,011  
Other   1,564       2,310       2,393       2,865       3,677  
Total Noninterest Expense $ 14,331     $ 19,049     $ 27,844     $ 33,544     $ 33,987  
                   
                   
  Three Months Ended
  September 30,   June 30,   March 31,   December 31,   September 30,
Mortgage Banking Noninterest Expense Fixed vs. Variable   2021       2021       2021       2020       2020  
(In thousands)                  
Noninterest Expense – Fixed Expenses $ 7,779     $ 9,764     $ 11,713     $ 13,296     $ 11,838  
Noninterest Expense – Variable Expenses (9)   6,552       9,285       16,131       20,248       22,149  
Total Noninterest Expense $ 14,331     $ 19,049     $ 27,844     $ 33,544     $ 33,987  
                   
                   
  Three Months Ended
SBA Lending (Q2) Data September 30,   June 30,   March 31,   December 31,   September 30,
(In thousands, except percentage data)   2021       2021       2021       2020       2020  
Final funded loans guaranteed portion sold, SBA $ 14,894     $ 17,969     $ 29,883     $ 14,116     $ 25,623  
                   
Gross gain on sales of loans, SBA $ 2,134     $ 2,551     $ 3,858     $ 1,698     $ 3,094  
Weighted average gross gain on sales of loans, SBA   14.33 %     14.20 %     12.91 %     12.03 %     12.08 %
                   
Net gain on sales of loans, SBA (10) $ 1,912     $ 2,322     $ 3,239     $ 1,267     $ 2,366  
Weighted average net gain on sales of loans, SBA   12.84 %     12.92 %     10.84 %     8.98 %     9.23 %
                   
                   
  Three Months Ended
Mortgage Banking Data September 30,   June 30,   March 31,   December 31,   September 30,
(In thousands, except percentage data)   2021       2021       2021       2020       2020  
                   
Mortgage originations for sale in the secondary market $ 579,458     $ 739,502     $ 1,344,873     $ 1,430,628     $ 1,526,809  
                   
Mortgage sales $ 651,180     $ 716,425     $ 1,476,198     $ 1,349,044     $ 1,471,501  
                   
Gross gain on sales of loans, mortgage banking $ 15,433     $ 11,765     $ 27,606     $ 47,224     $ 53,633  
Weighted average gross gain on sales of loans, mortgage banking   2.37 %     1.64 %     1.87 %     3.50 %     3.64 %
                   
Mortgage banking income (11) $ 12,538     $ 14,616     $ 34,095     $ 43,255     $ 52,426  
                                       

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

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

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

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

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