• First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2021

    المصدر: Nasdaq GlobeNewswire / 25 يناير 2022 16:00:01   America/Chicago

    JEFFERSONVILLE, Ind., Jan. 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 $4.3 million, or $0.60 per diluted share, for the quarter ended December 31, 2021 compared to net income of $9.9 million, or $1.39 per diluted share, for the quarter ended December 31, 2020.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated: “We had a very strong quarter of loan growth, recognized a stable net interest margin excluding PPP loans, realized improved asset quality ratios, executed our first sale of single-tenant net lease loans, and continued to stabilize the financial performance of the mortgage banking segment while positioning it for growth in calendar 2022. The core banking segment provided solid performance while the SBA lending segment underperformed due to an increase in provision for loan losses related to downgrades of nonperforming loans, which is oftentimes challenging to predict. I’m optimistic that the Company is well-positioned for the opportunities and challenges that will occur during 2022 and that each of the business lines will thrive and deliver exceptional value to our shareholders.”

    Results of Operations for the Three Months Ended December 31, 2021 and 2020

    Net interest income increased $164,000, or 1.2%, to $13.9 million for the three months ended December 31, 2021 as compared to the same period in 2020. The increase in net interest income was due to a $428,000 decrease in interest expense, partially offset by a $264,000 decrease in interest income. Interest income decreased due to a decrease in the average balance of interest-earning assets of $99.3 million, from $1.63 billion for 2020 to $1.53 billion for 2021, partially offset by an increase in the weighted-average tax-equivalent yield, from 4.03% for 2020 to 4.22% for 2021. The decrease in the average balance of interest-earning assets was due primarily to a decrease in PPP loans of $128.1 million and the increase in the weighted-average tax-equivalent yield is due primarily to an increase in the yield on PPP loans from 2.42% for 2020 to 4.65% 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 December 31, 2021. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 0.70% for 2020 to 0.62% for 2021, and a decrease in the average balance of interest-bearing liabilities of $113.0 million, from $1.31 billion for 2020 to $1.20 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, including brokered certificates of deposit, and FHLB borrowings.

    The Company recognized a provision for loan losses of $526,000 for the three months ended December 31, 2021 compared to a provision of $668,000 for the same period in 2020. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $2.7 million from $15.5 million at September 30, 2021 to $12.7 million at December 31, 2021. The Company recognized net charge-offs of $47,000 for the three months ended December 31, 2021, compared to net charge-offs of $570,000 for the same period in 2020, of which $506,000 was related to unguaranteed portions of SBA loans.

    Noninterest income decreased $29.6 million for the three months ended December 31, 2021 as compared to the same period in 2020. The decrease was due primarily to a decrease in mortgage banking income of $30.5 million. The decrease in mortgage banking income was primarily due to a $38.1 million decrease in production revenue from lower originations for sale, a decrease in the gain on sale margin, from 3.50% in 2020 to 2.08% in 2021, and an $8.4 million decrease in capitalized residential mortgage loan servicing rights, partially offset by a $675,000 increase in the fair value of the residential mortgage loan servicing rights portfolio in 2021 as compared to a $3.1 million unfavorable fair value adjustment recognized in 2020. Mortgage loans originated for sale were $541.1 million in the three months ended December 31, 2021 as compared to $1.43 billion in the same period in 2020.

    Noninterest expense decreased $19.6 million for the three months ended December 31, 2021 as compared to the same period in 2020. The decrease was due primarily to decreases in compensation and benefits and advertising expense of $16.6 million and $1.5 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 $811,000 for the three months ended December 31, 2021 compared to $4.5 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 15.9% as compared to 30.5% for 2020. The lower effective tax rate for 2021 was primarily due to lower nondeductible executive compensation expense in 2021 as compared to 2020.

    Comparison of Financial Condition at December 31, 2021 and September 30, 2021

    Total assets increased $43.2 million, from $1.72 billion at September 30, 2021 to $1.76 billion at December 31, 2021. Net loans held for investment increased $66.7 million during the quarter ended December 31, 2021, due primarily to growth in single-tenant net lease commercial real estate and residential mortgage loans, partially offset by a $10.6 million decrease in PPP loans. Excluding the decrease in PPP loans, net loans held for investment increased $77.3 million, or 7.2%, during the quarter ended December 31, 2021. Residential mortgage and single-tenant net lease loans held for sale decreased $47.2 million and $7.4 million, respectively, during the quarter due to loan sales outpacing originations. Residential mortgage loan servicing rights increased $5.2 million, or 10.5%, to $54.8 million at December 31, 2021 as the Company continues to increase its loan servicing portfolio.

    Total liabilities increased $39.4 million due primarily to an increase of $39.5 million in total deposits.

    Common stockholders’ equity increased $3.8 million, from $180.4 million at September 30, 2021 to $184.2 million at December 31, 2021, due primarily to an increase in retained net income of $3.4 million. At December 31, 2021 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    
     December 31,    
    OPERATING DATA: 2021   2020       
    (In thousands, except share and per share data)         
              
    Total interest income$15,762  $16,026       
    Total interest expense 1,859   2,287       
              
    Net interest income 13,903   13,739       
    Provision for loan losses 526   668       
              
    Net interest income after provision for loan losses 13,377   13,071       
              
    Total noninterest income 16,591   46,183       
    Total noninterest expense 24,852   44,402       
              
    Income before income taxes 5,116   14,852       
    Income tax expense 811   4,527       
              
    Net income 4,305   10,325       
              
    Less: Net income attributable to noncontrolling interests -   402       
              
    Net income attributable to the Company$4,305  $9,923       
              
    Net income per share, basic$0.60  $1.40       
    Weighted average shares outstanding, basic 7,116,790   7,101,183       
              
    Net income per share, diluted$0.60  $1.39       
    Weighted average shares outstanding, diluted 7,207,210   7,154,106       
              
              
    Performance ratios (three-month data annualized)         
    Return on average assets 1.01%  2.23%      
    Return on average equity 9.45%  25.43%      
    Return on average common stockholders' equity 9.45%  24.52%      
    Net interest margin (tax equivalent basis) 3.73%  3.46%      
    Efficiency ratio 81.50%  74.10%      
              
              
     December 31, September 30,  Increase    
    FINANCIAL CONDITION DATA: 2021   2021  (Decrease)    
    (In thousands, except per share data)         
              
    Total assets$1,764,589  $1,721,394  $43,195     
    Cash and cash equivalents 40,592   33,428   7,164     
    Investment securities 220,926   208,518   12,408     
    Loans held for sale 161,218   214,940   (53,722)    
    Gross loans (1) 1,157,435   1,090,237   67,198     
    Allowance for loan losses 14,780   14,301   479     
    Interest earning assets 1,570,079   1,540,111   29,968     
    Goodwill 9,848   9,848   -     
    Core deposit intangibles 935   988   (53)    
    Loan servicing rights 59,187   54,026   5,161     
    Noninterest-bearing deposits 287,449   291,039   (3,590)    
    Interest-bearing deposits (2) 979,586   936,541   43,045     
    Federal Home Loan Bank borrowings 258,377   250,000   8,377     
    Total liabilities 1,580,369   1,541,017   39,352     
    Stockholders' equity, net of noncontrolling interests 184,220   180,377   3,843     
              
    Book value per share$25.69  $25.31   0.38     
    Tangible book value per share (3) 24.19   23.79   0.40     
              
    Non-performing assets:         
    Nonaccrual loans - SBA guaranteed$5,518  $6,748  $(1,230)    
    Nonaccrual loans - unguaranteed 7,210   8,252   (1,042)    
    Total nonaccrual loans$12,728  $15,000  $(2,272)    
    Accruing loans past due 90 days -   472   (472)    
    Total non-performing loans 12,728   15,472   (2,744)    
    Troubled debt restructurings classified as performing loans 1,704   1,743   (39)    
    Total non-performing assets$14,432  $17,215  $(2,783)    
              
    Asset quality ratios:         
    Allowance for loan losses as a percent of total gross loans 1.28%  1.31%  (0.03%)    
    Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4) 1.33%  1.38%  (0.05%)    
    Allowance for loan losses as a percent of nonperforming loans 116.12%  92.43%  23.69%    
    Nonperforming loans as a percent of total gross loans 1.10%  1.42%  (0.32%)    
    Nonperforming assets as a percent of total assets 0.82%  1.00%  (0.18%)    
              
    (1) Includes $46.0 million and $56.7 million of PPP loans at December 31, 2021 and September 30, 2021, respectively.
    (2) Includes $120.6 million and $100.1 million of brokered certificates of deposit at 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.
              
              
     December 31, September 30,  Increase    
    Tangible Book Value Per Share 2021   2021  (Decrease)    
    (In thousands, except share and per share data)         
              
    Stockholders' equity, net of noncontrolling interests (GAAP)$184,220  $180,377  $3,843     
    Less: goodwill and core deposit intangibles (10,783)  (10,836)  53     
    Tangible equity (non-GAAP)$173,437  $169,541   3,896     
              
    Outstanding common shares 7,169,826   7,125,888   43,938     
              
    Tangible book value per share (non-GAAP)$24.19  $23.79  $0.40     
              
    Book value per share (GAAP)$25.69  $25.31  $0.38     
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):As of
    Summarized Consolidated Balance SheetsDecember 31, September 30, June 30, March 31, December 31,
    (In thousands, except per share data) 2021   2021   2021   2021   2020 
    Total cash and cash equivalents$40,592  $33,428  $22,909  $30,837  $35,392 
    Total investment securities 220,926   208,518   209,551   207,331   205,661 
    Total loans held for sale 161,218   214,940   277,374   207,141   357,242 
    Total loans, net of allowance for loan losses 1,142,655   1,075,936   1,065,852   1,128,348   1,114,708 
    PPP loans 46,020   56,656   100,573   159,320   178,499 
    Loan servicing rights 59,187   54,026   51,778   49,367   35,232 
    Total assets 1,764,589   1,721,394   1,759,330   1,751,257   1,873,665 
              
    Total deposits$1,267,035  $1,227,580  $1,127,155  $1,095,496  $1,121,320 
    Federal Home Loan Bank borrowings 258,377   250,000   283,289   289,237   340,092 
    Federal Reserve PPPLF borrowings -   -   107,829   128,494   172,772 
              
    Stockholders' equity$184,220  $180,377  $177,735  $173,040  $165,745 
              
    Outstanding common shares 7,169,826   7,125,888   7,124,388   7,125,081   7,124,781 
              
     Three Months Ended
    Summarized Consolidated Statements of IncomeDecember 31, September 30, June 30, March 31, December 31,
    (In thousands, except per share data) 2021   2021   2021   2021   2020 
    Total interest income$15,762  $16,243  $16,150  $16,840  $16,026 
    Total interest expense 1,859   1,819   1,921   2,060   2,287 
    Net interest income 13,903   14,424   14,229   14,780   13,739 
    Provision (credit) for loan losses 526   8   (2,730)  287   668 
    Net interest income after provision for loan losses 13,377   14,416   16,959   14,493   13,071 
              
    Total noninterest income 16,591   16,495   18,785   38,973   46,183 
    Total noninterest expense 24,852   25,104   30,619   39,284   44,402 
    Income before income taxes 5,116   5,807   5,125   14,182   14,852 
    Income tax expense 811   958   817   3,695   4,527 
    Net income 4,305   4,849   4,308   10,487   10,325 
    Less: net income attributable to noncontrolling interests -   -   -   -   402 
    Net income attributable to the Company$4,305  $4,849  $4,308  $10,487  $9,923 
              
              
    Net income per share, basic$0.60  $0.68  $0.61  $1.48  $1.40 
    Weighted average shares outstanding, basic 7,116,790   7,111,594   7,109,481   7,108,926   7,101,183 
              
    Net income per share, diluted$0.60  $0.67  $0.60  $1.46  $1.39 
    Weighted average shares outstanding, diluted 7,207,210   7,200,357   7,178,943   7,164,189   7,154,106 
              
     Three Months Ended
     December 31, September 30, June 30, March 31, December 31,
    Consolidated Performance Ratios (Annualized) 2021   2021   2021   2021   2020 
    Return on average assets 1.01%  1.12%  1.00%  2.34%  2.23%
    Return on average equity 9.45%  10.92%  9.94%  24.97%  25.43%
    Return on average common stockholders' equity 9.45%  10.92%  9.94%  24.97%  24.52%
    Net interest margin (tax equivalent basis) 3.73%  3.79%  3.75%  3.69%  3.46%
    Efficiency ratio 81.50%  81.19%  92.75%  73.08%  74.10%
              
              
     As of or for the Three Months Ended
     December 31, September 30, June 30, March 31, December 31,
    Consolidated Asset Quality Ratios 2021   2021   2021   2021   2020 
    Nonperforming loans as a percentage of total loans 1.10%  1.42%  1.15%  1.00%  1.10%
    Nonperforming assets as a percentage of total assets 0.82%  1.00%  0.81%  0.78%  0.78%
    Allowance for loan losses as a percentage of total loans 1.28%  1.31%  1.36%  1.52%  1.51%
    Allowance for loan losses as a percentage of nonperforming loans 116.12%  92.43%  117.88%  152.72%  138.02%
    Net charge-offs to average outstanding loans 0.00%  0.03%  0.00%  -0.00%  0.04%
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Segmented Statements of Income InformationDecember 31, September 30, June 30, March 31, December 31,
    (In thousands, except per share data) 2021   2021   2021   2021   2020 
    Core Banking Segment:         
    Net interest income$11,495  $11,517  $11,401  $11,114  $10,861 
    Provision (credit) for loan losses (144)  (189)  (2,401)  106   702 
    Net interest income after provision (credit) for loan losses 11,639   11,706   13,802   11,008   10,159 
    Noninterest income 1,942   1,780   1,509   1,490   1,552 
    Noninterest expense 9,482   8,800   9,364   8,991   8,112 
    Income before income taxes 4,099   4,686   5,947   3,507   3,599 
    Income tax expense 500   569   792   507   570 
    Net income attributable to the Company$3,599  $4,117  $5,155  $3,000  $3,029 
              
    SBA Lending Segment (Q2):         
    Net interest income (5)$1,875  $2,455  $2,510  $3,227  $2,147 
    Provision (credit) for loan losses 670   197   (329)  181   (34)
    Net interest income after provision (credit) for loan losses 1,205   2,258   2,839   3,046   2,181 
    Noninterest income 1,901   2,194   2,675   3,407   1,385 
    Noninterest expense 2,236   1,973   2,206   2,449   2,746 
    Income before income taxes 870   2,479   3,308   4,004   820 
    Income tax expense 265   612   790   1,005   105 
    Net income 605   1,867   2,518   2,999   715 
    Less: net income attributable to noncontrolling interests -   -   -   -   402 
    Net income attributable to the Company (6)$605  $1,867  $2,518  $2,999  $313 
              
    Mortgage Banking Segment:         
    Net interest income$533  $452  $318  $439  $731 
    Provision for loan losses -   -   -   -   - 
    Net interest income after provision for loan losses 533   452   318   439   731 
    Noninterest income 12,748   12,521   14,601   34,076   43,246 
    Noninterest expense 13,134   14,331   19,049   27,844   33,544 
    Income (loss) before income taxes 147   (1,358)  (4,130)  6,671   10,433 
    Income tax expense (benefit) 46   (223)  (765)  2,183   3,852 
    Net income (loss) attributable to the Company$101  $(1,135) $(3,365) $4,488  $6,581 
              
    Net Income (Loss) Per Share by Segment         
    Net income per share, basic - Core Banking$0.50  $0.58  $0.73  $0.42  $0.43 
    Net income per share, basic - SBA Lending (Q2) (7) 0.09   0.26   0.35   0.42   0.04 
    Net income (loss) per share, basic - Mortgage Banking 0.01   (0.16)  (0.47)  0.64   0.93 
    Total net income per share, basic (7)$0.60  $0.68  $0.61  $1.48  $1.40 
              
    Net Income (Loss) Per Diluted Share by Segment         
    Net income per share, diluted - Core Banking$0.50  $0.57  $0.72  $0.42  $0.42 
    Net income per share, diluted - SBA Lending (Q2) (8) 0.09   0.26   0.35   0.42   0.04 
    Net income (loss) per share, diluted - Mortgage Banking 0.01   (0.16)  (0.47)  0.62   0.93 
    Total net income per share, diluted (8)$0.60  $0.67  $0.60  $1.46  $1.39 
              
    (5) Includes net interest income derived from PPP loans of:$550  $1,145  $1,220  $1,887  $928 
    (6) Includes net income attributable to the Company derived from PPP loans (tax effected) of:$413  $859  $915  $1,415  $810 
    (7) Includes basic net income per share derived from PPP loans (tax effected) of:$0.06  $0.12  $0.13  $0.20  $0.11 
    (8) Includes diluted net income per share derived from PPP loans (tax effected) of:$0.06  $0.12  $0.13  $0.20  $0.11 
              
              
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months Ended
    Noninterest Expense Detail by SegmentDecember 31, September 30, June 30, March 31, December 31,
    (In thousands) 2021   2021   2021   2021   2020 
    Core Banking Segment:         
    Compensation (9)$5,776  $5,220  $5,039  $4,895  $4,127 
    Occupancy 1,357   1,415   1,473   1,387   1,392 
    Advertising 232   268   213   248   177 
    Other 2,117   1,897   2,639   2,461   2,416 
    Total Noninterest Expense$9,482  $8,800  $9,364  $8,991  $8,112 
              
    SBA Lending Segment (Q2):         
    Compensation$1,685  $1,602  $1,697  $1,929  $2,280 
    Occupancy 78   83   101   129   93 
    Advertising 9   6   3   8   10 
    Other 464   282   405   383   363 
    Total Noninterest Expense$2,236  $1,973  $2,206  $2,449  $2,746 
              
    Mortgage Banking Segment:         
    Compensation (9)$9,830  $11,456  $14,594  $22,657  $27,455 
    Occupancy 678   723   1,012   998   1,100 
    Advertising 551   588   1,133   1,796   2,124 
    Other 2,075   1,564   2,310   2,393   2,865 
    Total Noninterest Expense$13,134  $14,331  $19,049  $27,844  $33,544 
              
              
     Three Months Ended
     December 31, September 30, June 30, March 31, December 31,
    Mortgage Banking Noninterest Expense Fixed vs. Variable 2021   2021   2021   2021   2020 
    (In thousands)         
    Noninterest Expense - Fixed Expenses$7,752  $7,779  $9,764  $11,713  $13,296 
    Noninterest Expense - Variable Expenses (10) 5,382   6,552   9,285   16,131   20,248 
    Total Noninterest Expense$13,134  $14,331  $19,049  $27,844  $33,544 
              
              
     Three Months Ended
    SBA Lending (Q2) DataDecember 31, September 30, June 30, March 31, December 31,
    (In thousands, except percentage data) 2021   2021   2021   2021   2020 
    Final funded loans guaranteed portion sold, SBA$14,131  $14,894  $17,969  $29,883  $14,116 
              
    Gross gain on sales of loans, SBA$1,841  $2,134  $2,551  $3,858  $1,698 
    Weighted average gross gain on sales of loans, SBA 13.03%  14.33%  14.20%  12.91%  12.03%
              
    Net gain on sales of loans, SBA (11)$1,636  $1,912  $2,322  $3,239  $1,267 
    Weighted average net gain on sales of loans, SBA 11.58%  12.84%  12.92%  10.84%  8.98%
              
              
     Three Months Ended
    Mortgage Banking DataDecember 31, September 30, June 30, March 31, December 31,
    (In thousands, except percentage data) 2021   2021   2021   2021   2020 
              
    Mortgage originations for sale in the secondary market$541,074  $579,458  $739,502  $1,344,873  $1,430,628 
              
    Mortgage sales$587,928  $651,180  $716,425  $1,476,198  $1,349,044 
              
    Gross gain on sales of loans, mortgage banking$12,257  $15,433  $11,765  $27,606  $47,224 
    Weighted average gross gain on sales of loans, mortgage banking 2.08%  2.37%  1.64%  1.87%  3.50%
              
    Mortgage banking income (12)$12,744  $12,538  $14,616  $34,095  $43,229 
              
    (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:$975  $678  $-  $- -$- 
    (10) Variable expenses represent incentive compensation and advertising expenses.
    (11) Net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets.
    (12) 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 SheetsDecember 31, September 30, June 30, March 31, December 31,
    (In thousands) 2021   2021   2021   2021   2020 
    Interest-earning assets         
    Average balances:         
    Interest-bearing deposits with banks$33,065  $63,217  $37,683  $48,035  $34,412 
    Loans, excluding PPP 1,221,879   1,194,277   1,155,958   1,217,398   1,205,278 
    PPP loans 51,178   84,288   145,227   164,533   179,316 
    Investment securities - taxable 47,717   46,005   46,392   42,424   42,462 
    Investment securities - nontaxable 153,452   148,723   148,280   146,145   146,374 
    FRB and FHLB stock 19,258   19,258   19,258   19,294   17,992 
    Total interest-earning assets$1,526,549  $1,555,768  $1,552,798  $1,637,829  $1,625,834 
              
    Interest income (tax equivalent basis):         
    Interest-bearing deposits with banks$14  $23  $14  $18  $18 
    Loans, excluding PPP 13,424   13,279   13,017   13,033   13,171 
    PPP loans 595   1,219   1,347   2,031   1,085 
    Investment securities - taxable 405   421   447   432   471 
    Investment securities - nontaxable 1,509   1,482   1,496   1,487   1,508 
    FRB and FHLB stock 149   146   161   167   108 
    Total interest income (tax equivalent basis)$16,096  $16,570  $16,482  $17,168  $16,361 
              
    Weighted average yield (tax equivalent basis, annualized):         
    Interest-bearing deposits with banks 0.17%  0.15%  0.15%  0.15%  0.21%
    Loans, excluding PPP 4.39%  4.45%  4.50%  4.28%  4.37%
    PPP loans 4.65%  5.78%  3.71%  4.94%  2.42%
    Investment securities - taxable 3.40%  3.66%  3.85%  4.07%  4.44%
    Investment securities - nontaxable 3.93%  3.99%  4.04%  4.07%  4.12%
    FRB and FHLB stock 3.09%  3.03%  3.34%  3.46%  2.40%
    Total interest-earning assets 4.22%  4.26%  4.25%  4.19%  4.03%
              
    Interest-bearing liabilities         
    Average balances:         
    Interest-bearing deposits$913,297  $935,800  $807,342  $840,556  $811,016 
    Federal Home Loan Bank borrowings 264,617   255,210   272,834   293,819   306,299 
    Federal Reserve PPPLF borrowings -   11,937   114,453   158,354   173,701 
    Subordinated debt and other borrowings 19,870   19,853   19,836   19,786   19,803 
    Total interest-bearing liabilities$1,197,784  $1,222,800  $1,214,465  $1,312,515  $1,310,819 
              
    Interest expense:         
    Interest-bearing deposits$811  $765  $723  $771  $936 
    Federal Home Loan Bank borrowings 730   725   780   833   861 
    Federal Reserve PPPLF borrowings -   12   98   137   153 
    Subordinated debt and other borrowings 318   319   320   319   337 
    Total interest expense$1,859  $1,821  $1,921  $2,060  $2,287 
              
    Weighted average cost (annualized):         
    Interest-bearing deposits 0.36%  0.33%  0.36%  0.37%  0.46%
    Federal Home Loan Bank borrowings 1.10%  1.14%  1.14%  1.13%  1.12%
    Federal Reserve PPPLF borrowings 0.00%  0.40%  0.34%  0.35%  0.35%
    Subordinated debt and other borrowings 6.40%  6.43%  6.45%  6.45%  6.81%
    Total interest-bearing liabilities 0.62%  0.60%  0.63%  0.63%  0.70%
              
    Interest rate spread (tax equivalent basis, annualized) 3.60%  3.66%  3.62%  3.56%  3.33%
              
    Net interest margin (tax equivalent basis, annualized) 3.73%  3.79%  3.75%  3.69%  3.46%
              
    Net interest margin, excluding PPP and PPPLF (non-GAAP), (tax equivalent basis, annualized) 3.70%  3.68%  3.78%  3.59%  3.63%


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