First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2022
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 | ||||||||||||||||||||||
OPERATING DATA: | December 31, | |||||||||||||||||||||
(In thousands, except share and per share data) | 2022 | 2021 | ||||||||||||||||||||
Total interest income | $ | 23,483 | $ | 15,762 | ||||||||||||||||||
Total interest expense | 7,222 | 1,859 | ||||||||||||||||||||
Net interest income | 16,261 | 13,903 | ||||||||||||||||||||
Provision for loan losses | 984 | 526 | ||||||||||||||||||||
Net interest income after provision for loan losses | 15,277 | 13,377 | ||||||||||||||||||||
Total noninterest income | 5,188 | 16,591 | ||||||||||||||||||||
Total noninterest expense | 17,511 | 24,852 | ||||||||||||||||||||
Income before income taxes | 2,954 | 5,116 | ||||||||||||||||||||
Income tax expense | 83 | 811 | ||||||||||||||||||||
Net income | $ | 2,871 | $ | 4,305 | ||||||||||||||||||
Net income per share, basic | $ | 0.42 | $ | 0.60 | ||||||||||||||||||
Weighted average shares outstanding, basic | 6,915,909 | 7,116,790 | ||||||||||||||||||||
Net income per share, diluted | $ | 0.41 | $ | 0.60 | ||||||||||||||||||
Weighted average shares outstanding, diluted | 6,972,055 | 7,207,210 | ||||||||||||||||||||
Performance ratios (three-month data annualized) | ||||||||||||||||||||||
Return on average assets | 0.54 | % | 1.01 | % | ||||||||||||||||||
Return on average equity | 7.50 | % | 9.45 | % | ||||||||||||||||||
Return on average common stockholders' equity | 7.50 | % | 9.45 | % | ||||||||||||||||||
Net interest margin (tax equivalent basis) | 3.41 | % | 3.73 | % | ||||||||||||||||||
Efficiency ratio | 81.64 | % | 81.50 | % | ||||||||||||||||||
FINANCIAL CONDITION DATA: | December 31, | September 30, | Increase | |||||||||||||||||||
(In thousands, except per share data) | 2022 | 2022 | (Decrease) | |||||||||||||||||||
(As Restated) | ||||||||||||||||||||||
Total assets | $ | 2,196,919 | $ | 2,093,725 | $ | 103,194 | ||||||||||||||||
Cash and cash equivalents | 38,278 | 41,665 | (3,387 | ) | ||||||||||||||||||
Investment securities | 330,683 | 318,075 | 12,608 | |||||||||||||||||||
Loans held for sale | 44,281 | 60,462 | (16,181 | ) | ||||||||||||||||||
Gross loans (1) | 1,599,020 | 1,489,904 | 109,116 | |||||||||||||||||||
Allowance for loan losses | 16,080 | 15,360 | 720 | |||||||||||||||||||
Interest earning assets | 1,994,374 | 1,898,051 | 96,323 | |||||||||||||||||||
Goodwill | 9,848 | 9,848 | - | |||||||||||||||||||
Core deposit intangibles | 721 | 775 | (54 | ) | ||||||||||||||||||
Loan servicing rights | 65,598 | 67,194 | (1,596 | ) | ||||||||||||||||||
Noninterest-bearing deposits | 315,390 | 340,172 | (24,782 | ) | ||||||||||||||||||
Interest-bearing deposits (2) | 1,222,451 | 1,175,662 | 46,789 | |||||||||||||||||||
Federal Home Loan Bank borrowings | 377,643 | 307,303 | 70,340 | |||||||||||||||||||
Subordinated debt and other borrowings, net of issuance costs | 95,458 | 88,206 | 7,252 | |||||||||||||||||||
Total liabilities | 2,036,775 | 1,942,160 | 94,615 | |||||||||||||||||||
Accumulated other comprehensive income (loss) | (19,000 | ) | (27,079 | ) | 8,079 | |||||||||||||||||
Stockholders' equity, net of noncontrolling interests | 160,144 | 151,565 | 8,579 | |||||||||||||||||||
Book value per share | $ | 23.15 | $ | 21.74 | $ | 1.41 | ||||||||||||||||
Tangible book value per share (3) | 21.62 | 20.22 | 1.40 | |||||||||||||||||||
Non-performing assets: | ||||||||||||||||||||||
Nonaccrual loans - SBA guaranteed | $ | 5,465 | $ | 5,474 | $ | (9 | ) | |||||||||||||||
Nonaccrual loans - unguaranteed | 6,058 | 5,382 | 676 | |||||||||||||||||||
Total nonaccrual loans | $ | 11,523 | $ | 10,856 | $ | 667 | ||||||||||||||||
Accruing loans past due 90 days | - | - | - | |||||||||||||||||||
Total non-performing loans | 11,523 | 10,856 | 667 | |||||||||||||||||||
Foreclosed real estate | - | - | - | |||||||||||||||||||
Troubled debt restructurings classified as performing loans | 2,580 | 2,714 | (134 | ) | ||||||||||||||||||
Total non-performing assets | $ | 14,103 | $ | 13,570 | $ | 533 | ||||||||||||||||
Asset quality ratios: | ||||||||||||||||||||||
Allowance for loan losses as a percent of total gross loans | 1.01 | % | 1.03 | % | (0.02 | %) | ||||||||||||||||
Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4) | 1.01 | % | 1.03 | % | (0.02 | %) | ||||||||||||||||
Allowance for loan losses as a percent of nonperforming loans | 139.55 | % | 141.49 | % | (1.94 | %) | ||||||||||||||||
Nonperforming loans as a percent of total gross loans | 0.72 | % | 0.73 | % | (0.01 | %) | ||||||||||||||||
Nonperforming assets as a percent of total assets | 0.64 | % | 0.65 | % | (0.01 | %) | ||||||||||||||||
(1) Includes $591,000 and $862,000 of PPP loans at December 31, 2022 and September 30, 2022, respectively. | ||||||||||||||||||||||
(2) Includes $326.2 million and $292.5 million of brokered certificates of deposit at December 31, 2022 and September 30, 2022, 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 | 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 | % | ||||||||||||
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