First Savings Financial Group, Inc. Reports Financial Results for the Second Fiscal Quarter Ended March 31, 2025

 

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

OPERATING DATA:

 

March 31,

 

March 31,

 

 

(In thousands, except share and per share data)

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

30,823

 

 

$

30,016

 

 

$

63,272

 

 

$

58,671

 

 

 

Total interest expense

 

 

14,832

 

 

 

15,678

 

 

 

31,819

 

 

 

30,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

15,991

 

 

 

14,338

 

 

 

31,453

 

 

 

28,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (credit) for credit losses – loans

 

 

(357

)

 

 

713

 

 

 

(848

)

 

 

1,183

 

 

 

Provision (credit) for unfunded lending commitments

 

 

123

 

 

 

(259

)

 

 

169

 

 

 

(317

)

 

 

Provision (credit) for credit losses – securities

 

 

(1

)

 

 

23

 

 

 

(7

)

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total provision (credit) for credit losses

 

 

(235

)

 

 

477

 

 

 

(686

)

 

 

889

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision (credit) for credit losses

 

 

16,226

 

 

 

13,861

 

 

 

32,139

 

 

 

27,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

 

3,560

 

 

 

3,710

 

 

 

9,663

 

 

 

6,492

 

 

 

Total noninterest expense

 

 

13,698

 

 

 

11,778

 

 

 

28,641

 

 

 

27,817

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

6,088

 

 

 

5,793

 

 

 

13,161

 

 

 

6,237

 

 

 

Income tax expense

 

 

589

 

 

 

866

 

 

 

1,437

 

 

 

390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

5,499

 

 

$

4,927

 

 

$

11,724

 

 

$

5,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, basic

 

$

0.80

 

 

$

0.72

 

 

$

1.71

 

 

$

0.86

 

 

 

Weighted average shares outstanding, basic

 

 

6,875,826

 

 

 

6,832,130

 

 

 

6,861,061

 

 

 

6,828,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, diluted

 

$

0.79

 

 

$

0.72

 

 

$

1.68

 

 

$

0.85

 

 

 

Weighted average shares outstanding, diluted

 

 

6,960,020

 

 

 

6,859,611

 

 

 

6,961,829

 

 

 

6,849,928

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance ratios (annualized)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.93

%

 

 

0.84

%

 

 

0.98

%

 

 

0.50

%

 

 

Return on average equity

 

 

12.24

%

 

 

11.96

%

 

 

13.15

%

 

 

7.38

%

 

 

Return on average common stockholders’ equity

 

 

12.34

%

 

 

11.96

%

 

 

13.15

%

 

 

7.38

%

 

 

Net interest margin (tax equivalent basis)

 

 

2.93

%

 

 

2.66

%

 

 

2.84

%

 

 

2.68

%

 

 

Efficiency ratio

 

 

70.06

%

 

 

65.26

%

 

 

69.66

%

 

 

79.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD

 

 

 

FYTD

FINANCIAL CONDITION DATA:

 

March 31,

 

December 31,

 

Increase

 

September 30,

 

Increase

(In thousands, except per share data)

 

 

2025

 

 

 

2024

 

 

(Decrease)

 

 

2024

 

 

(Decrease)

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,376,230

 

 

$

2,388,735

 

 

$

(12,505

)

 

$

2,450,368

 

 

$

(74,138

)

Cash and cash equivalents

 

 

28,683

 

 

 

76,224

 

 

 

(47,541

)

 

 

52,142

 

 

 

(23,459

)

Investment securities

 

 

244,084

 

 

 

242,634

 

 

 

1,450

 

 

 

249,719

 

 

 

(5,635

)

Loans held for sale

 

 

61,239

 

 

 

24,441

 

 

 

36,798

 

 

 

25,716

 

 

 

35,523

 

Gross loans

 

 

1,900,660

 

 

 

1,905,199

 

 

 

(4,539

)

 

 

1,985,146

 

 

 

(84,486

)

Allowance for credit losses

 

 

20,484

 

 

 

20,685

 

 

 

(201

)

 

 

21,294

 

 

 

(810

)

Interest earning assets

 

 

2,219,504

 

 

 

2,234,258

 

 

 

(14,754

)

 

 

2,277,512

 

 

 

(58,008

)

Goodwill

 

 

9,848

 

 

 

9,848

 

 

 

 

 

 

9,848

 

 

 

 

Core deposit intangibles

 

 

316

 

 

 

357

 

 

 

(41

)

 

 

398

 

 

 

(82

)

Loan servicing rights

 

 

2,744

 

 

 

2,661

 

 

 

83

 

 

 

2,754

 

 

 

(10

)

Noninterest-bearing deposits

 

 

185,252

 

 

 

183,239

 

 

 

2,013

 

 

 

191,528

 

 

 

(6,276

)

Interest-bearing deposits (customer)

 

 

1,207,159

 

 

 

1,212,527

 

 

 

(5,368

)

 

 

1,180,196

 

 

 

26,963

 

Interest-bearing deposits (brokered)

 

 

396,770

 

 

 

437,008

 

 

 

(40,238

)

 

 

509,157

 

 

 

(112,387

)

Federal Home Loan Bank borrowings

 

 

325,310

 

 

 

295,000

 

 

 

30,310

 

 

 

301,640

 

 

 

23,670

 

Subordinated debt and other borrowings

 

 

48,682

 

 

 

48,642

 

 

 

40

 

 

 

48,603

 

 

 

79

 

Total liabilities

 

 

2,197,041

 

 

 

2,212,708

 

 

 

(15,667

)

 

 

2,273,253

 

 

 

(76,212

)

Accumulated other comprehensive loss

 

 

(19,385

)

 

 

(17,789

)

 

 

(1,596

)

 

 

(11,195

)

 

 

(8,190

)

Total stockholders’ equity

 

 

179,189

 

 

 

176,027

 

 

 

3,162

 

 

 

177,115

 

 

 

2,074

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share

 

$

25.90

 

 

$

25.48

 

 

 

0.42

 

 

$

25.72

 

 

 

0.18

 

Tangible book value per share (non-GAAP) (1)

 

 

24.43

 

 

 

24.00

 

 

 

0.43

 

 

 

24.23

 

 

 

0.20

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans – SBA guaranteed

 

$

123

 

 

$

4,444

 

 

$

(4,321

)

 

$

5,036

 

 

$

(4,913

)

Nonaccrual loans

 

 

12,597

 

 

 

12,124

 

 

 

473

 

 

 

11,906

 

 

 

691

 

Total nonaccrual loans

 

$

12,720

 

 

$

16,568

 

 

$

(3,848

)

 

$

16,942

 

 

$

(4,222

)

Accruing loans past due 90 days

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total non-performing loans

 

 

12,720

 

 

 

16,568

 

 

 

(3,848

)

 

 

16,942

 

 

 

(4,222

)

Foreclosed real estate

 

 

444

 

 

 

444

 

 

 

 

 

 

444

 

 

 

 

Total non-performing assets

 

$

13,164

 

 

$

17,012

 

 

$

(3,848

)

 

$

17,386

 

 

$

(4,222

)

 

 

 

 

 

 

 

 

 

 

 

Asset quality ratios:

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses as a percent of total gross loans

 

 

1.08

%

 

 

1.09

%

 

 

(0.01

%)

 

 

1.07

%

 

 

0.01

%

Allowance for credit losses as a percent of nonperforming loans

 

 

161.04

%

 

 

124.85

%

 

 

36.19

%

 

 

125.69

%

 

 

35.35

%

Nonperforming loans as a percent of total gross loans

 

 

0.67

%

 

 

0.87

%

 

 

(0.20

%)

 

 

0.85

%

 

 

(0.18

%)

Nonperforming assets as a percent of total assets

 

 

0.55

%

 

 

0.71

%

 

 

(0.16

%)

 

 

0.71

%

 

 

(0.16

%)

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

Net Income

 

March 31,

 

March 31,

 

 

(In thousands)

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to the Company (non-GAAP)

 

$

5,313

 

 

$

3,561

 

 

$

9,367

 

 

$

4,481

 

 

 

Plus: Gain on sale of loans, home equity lines of credit, net of tax effect

 

 

 

 

 

 

 

 

1,869

 

 

 

 

 

 

Plus: Gain on sale of equity securities, net of tax effect

 

 

 

 

 

 

 

 

302

 

 

 

 

 

 

Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect

 

 

 

 

 

492

 

 

 

 

 

 

492

 

 

 

Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect

 

 

 

 

 

583

 

 

 

 

 

 

583

 

 

 

Plus: Gain on sale of premises and equipment, net of tax effect

 

 

186

 

 

 

90

 

 

 

186

 

 

 

90

 

 

 

Plus: Adjustment to previous data processing contract termination accrual, net of tax effect

 

 

 

 

 

117

 

 

 

 

 

 

117

 

 

 

Plus: Distribution from equity investment, net of tax effect

 

 

 

 

 

85

 

 

 

 

 

 

85

 

 

 

Net income attributable to the Company (GAAP)

 

$

5,499

 

 

$

4,927

 

 

$

11,724

 

 

$

5,847

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income per Share, Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share attributable to the Company, diluted (non-GAAP)

 

$

0.76

 

 

$

0.52

 

 

$

1.35

 

 

$

0.65

 

 

 

Plus: Gain on sale of loans, home equity lines of credit, net of tax effect

 

 

 

 

 

 

 

 

0.27

 

 

 

 

 

 

Plus: Gain on sale of equity securities, net of tax effect

 

 

 

 

 

 

 

 

0.03

 

 

 

 

 

 

Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect

 

 

 

 

 

0.07

 

 

 

 

 

 

0.07

 

 

 

Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect

 

 

 

 

 

0.08

 

 

 

 

 

 

0.08

 

 

 

Plus: Gain on sale of premises and equipment, net of tax effect

 

 

0.03

 

 

 

0.01

 

 

 

0.03

 

 

 

0.01

 

 

 

Plus: Adjustment to previous data processing contract termination accrual, net of tax effect

 

 

 

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

Plus: Distribution from equity investment, net of tax effect

 

 

 

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

Net income per share, diluted (GAAP)

 

$

0.79

 

 

$

0.72

 

 

$

1.68

 

 

$

0.85

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Bank Segment Net Income

 

 

 

 

 

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to the Core Bank (non-GAAP)

 

$

4,883

 

 

$

3,637

 

 

$

9,081

 

 

$

7,685

 

 

 

Plus: Gain on sale of loans, home equity lines of credit, net of tax effect

 

 

 

 

 

 

 

 

1,869

 

 

 

 

 

 

Plus: Gain on sale of equity securities, net of tax effect

 

 

 

 

 

 

 

 

302

 

 

 

 

 

 

Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect

 

 

 

 

 

583

 

 

 

 

 

 

583

 

 

 

Plus: Gain on sale of premises and equipment, net of tax effect

 

 

186

 

 

 

90

 

 

 

186

 

 

 

90

 

 

 

Plus: Adjustment to previous data processing contract termination accrual, net of tax effect

 

 

 

 

 

117

 

 

 

 

 

 

117

 

 

 

Plus: Distribution from equity investment, net of tax effect

 

 

 

 

 

85

 

 

 

 

 

 

85

 

 

 

Net income attributable to the Core Bank (GAAP)

 

$

5,069

 

 

$

4,511

 

 

$

11,438

 

 

$

8,559

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Bank Segment Net Income per Share, Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core Bank net income per share, diluted (non-GAAP)

 

$

0.70

 

 

$

0.53

 

 

$

1.31

 

 

$

1.12

 

 

 

Plus: Gain on sale of loans, home equity lines of credit, net of tax effect

 

 

 

 

 

 

 

 

0.27

 

 

 

 

 

 

Plus: Gain on sale of equity securities, net of tax effect

 

 

 

 

 

 

 

 

0.03

 

 

 

 

 

 

Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect

 

 

 

 

 

0.08

 

 

 

 

 

 

0.08

 

 

 

Plus: Gain on sale of premises and equipment, net of tax effect

 

 

 

 

 

0.01

 

 

 

0.03

 

 

 

0.01

 

 

 

Plus: Adjustment to previous data processing contract termination accrual, net of tax effect

 

 

0.03

 

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

Plus: Distribution from equity investment, net of tax effect

 

 

 

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

Core Bank net income per share, diluted (GAAP)

 

$

0.73

 

 

$

0.66

 

 

$

1.64

 

 

$

1.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):

 

Three Months Ended

 

Fiscal Year Ended

 

 

Efficiency Ratio

 

March 31,

 

March 31,

 

 

(In thousands)

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

15,991

 

 

$

14,338

 

 

$

31,453

 

 

$

28,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

 

3,560

 

 

 

3,710

 

 

 

9,663

 

 

 

6,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

 

13,698

 

 

 

11,778

 

 

 

28,641

 

 

 

27,817

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

 

70.06

%

 

 

65.26

%

 

 

69.66

%

 

 

79.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

3,560

 

 

$

3,710

 

 

$

9,663

 

 

$

6,492

 

 

 

Less: Gain on sale of loans, home equity lines of credit

 

 

 

 

 

 

 

 

(2,492

)

 

 

 

 

 

Less: Gain on sale of equity securities

 

 

 

 

 

 

 

 

(403

)

 

 

 

 

 

Less: Gain on sale of premises and equipment

 

 

(248

)

 

 

(120

)

 

 

(248

)

 

 

(120

)

 

 

Less: Adjustment to MSR valuation allowance related to sale

 

 

 

 

 

(530

)

 

 

 

 

 

(530

)

 

 

Less: Distribution from equity investment

 

 

 

 

 

(113

)

 

 

 

 

 

(113

)

 

 

Noninterest income (Non-GAAP)

 

 

3,312

 

 

 

2,947

 

 

 

6,520

 

 

 

5,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

13,698

 

 

$

11,778

 

 

$

28,641

 

 

$

27,817

 

 

 

Plus: Adjustment to MSR valuation allowance related to sale

 

 

 

 

 

247

 

 

 

 

 

 

247

 

 

 

Plus: Decrease in loss contingency for SBA-guaranteed loans

 

 

 

 

 

656

 

 

 

 

 

 

656

 

 

 

Plus: Adjustment to previous data processing contract termination accrual

 

 

 

 

 

156

 

 

 

 

 

 

156

 

 

 

Noninterest expense (Non-GAAP)

 

$

13,698

 

 

$

12,837

 

 

$

28,641

 

 

$

28,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (excluding nonrecurring items) (non-GAAP)

 

 

70.96

%

 

 

74.27

%

 

 

75.42

%

 

 

84.48

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QTD

 

 

 

FYTD

Tangible Book Value Per Share

 

March 31,

 

December 31,

 

Increase

 

September 30,

 

Increase

(In thousands, except share and per share data)

 

 

2025

 

 

 

2024

 

 

(Decrease)

 

 

2024

 

 

(Decrease)

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (GAAP)

 

$

179,189

 

 

$

176,027

 

 

$

3,162

 

 

$

177,115

 

 

$

2,074

 

Less: goodwill and core deposit intangibles

 

 

(10,164

)

 

 

(10,205

)

 

 

41

 

 

 

(10,246

)

 

 

82

 

Tangible stockholders’ equity (non-GAAP)

 

$

169,025

 

 

$

165,822

 

 

$

3,203

 

 

$

166,869

 

 

$

2,156

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding common shares

 

 

6,919,136

 

 

 

6,909,173

 

 

$

9,963

 

 

 

6,887,106

 

 

$

32,030

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share (non-GAAP)

 

$

24.43

 

 

$

24.00

 

 

$

0.43

 

 

$

24.23

 

 

$

0.20

 

 

 

 

 

 

 

 

 

 

 

 

Book value per share (GAAP)

 

$

25.90

 

 

$

25.48

 

 

$

0.42

 

 

$

25.72

 

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):

 

As of

Summarized Consolidated Balance Sheets

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands, except per share data)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Total cash and cash equivalents

 

$

28,683

 

 

$

76,224

 

 

$

52,142

 

 

$

42,423

 

 

$

62,969

 

Total investment securities

 

 

244,084

 

 

 

242,634

 

 

 

249,719

 

 

 

238,785

 

 

 

240,142

 

Total loans held for sale

 

 

61,239

 

 

 

24,441

 

 

 

25,716

 

 

 

125,859

 

 

 

19,108

 

Total loans, net of allowance for credit losses

 

 

1,880,176

 

 

 

1,884,514

 

 

 

1,963,852

 

 

 

1,826,980

 

 

 

1,882,458

 

Loan servicing rights

 

 

2,744

 

 

 

2,661

 

 

 

2,754

 

 

 

2,860

 

 

 

3,028

 

Total assets

 

 

2,376,230

 

 

 

2,388,735

 

 

 

2,450,368

 

 

 

2,393,491

 

 

 

2,364,983

 

 

 

 

 

 

 

 

 

 

 

 

Customer deposits

 

$

1,392,411

 

 

$

1,395,766

 

 

$

1,371,724

 

 

$

1,312,997

 

 

$

1,239,271

 

Brokered deposits

 

 

396,770

 

 

 

437,008

 

 

 

509,157

 

 

 

399,151

 

 

 

548,175

 

Total deposits

 

 

1,789,181

 

 

 

1,832,774

 

 

 

1,880,881

 

 

 

1,712,148

 

 

 

1,787,446

 

Federal Home Loan Bank borrowings

 

 

325,310

 

 

 

295,000

 

 

 

301,640

 

 

 

425,000

 

 

 

315,000

 

 

 

 

 

 

 

 

 

 

 

 

Common stock and additional paid-in capital

 

$

28,650

 

 

$

28,382

 

 

$

27,725

 

 

$

27,592

 

 

$

27,475

 

Retained earnings – substantially restricted

 

 

182,918

 

 

 

178,526

 

 

 

173,337

 

 

 

170,688

 

 

 

167,648

 

Accumulated other comprehensive loss

 

 

(19,385

)

 

 

(17,789

)

 

 

(11,195

)

 

 

(17,415

)

 

 

(17,144

)

Unearned stock compensation

 

 

(862

)

 

 

(973

)

 

 

(901

)

 

 

(999

)

 

 

(1,096

)

Less treasury stock, at cost

 

 

(12,132

)

 

 

(12,119

)

 

 

(11,851

)

 

 

(11,866

)

 

 

(11,827

)

Total stockholders’ equity

 

 

179,189

 

 

 

176,027

 

 

 

177,115

 

 

 

168,000

 

 

 

165,056

 

 

 

 

 

 

 

 

 

 

 

 

Outstanding common shares

 

 

6,919,136

 

 

 

6,909,173

 

 

 

6,887,106

 

 

 

6,883,656

 

 

 

6,883,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Summarized Consolidated Statements of Income

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands, except per share data)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

30,823

 

 

$

32,449

 

 

$

32,223

 

 

$

31,094

 

 

$

30,016

 

Total interest expense

 

 

14,832

 

 

 

16,987

 

 

 

17,146

 

 

 

16,560

 

 

 

15,678

 

Net interest income

 

 

15,991

 

 

 

15,462

 

 

 

15,077

 

 

 

14,534

 

 

 

14,338

 

Provision (credit) for credit losses – loans

 

 

(357

)

 

 

(491

)

 

 

1,808

 

 

 

501

 

 

 

713

 

Provision (credit) for unfunded lending commitments

 

 

123

 

 

 

46

 

 

 

(262

)

 

 

158

 

 

 

(259

)

Provision (credit) for credit losses – securities

 

 

(1

)

 

 

(6

)

 

 

(86

)

 

 

84

 

 

 

23

 

Total provision (credit) for credit losses

 

 

(235

)

 

 

(451

)

 

 

1,460

 

 

 

743

 

 

 

477

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision for credit losses

 

 

16,226

 

 

 

15,913

 

 

 

13,617

 

 

 

13,791

 

 

 

13,861

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest income

 

 

3,560

 

 

 

6,103

 

 

 

2,842

 

 

 

3,196

 

 

 

3,710

 

Total noninterest expense

 

 

13,698

 

 

 

14,943

 

 

 

12,642

 

 

 

12,431

 

 

 

11,778

 

Income before income taxes

 

 

6,088

 

 

 

7,073

 

 

 

3,817

 

 

 

4,556

 

 

 

5,793

 

Income tax expense (benefit)

 

 

589

 

 

 

848

 

 

 

145

 

 

 

483

 

 

 

866

 

Net income

 

 

5,499

 

 

 

6,225

 

 

 

3,672

 

 

 

4,073

 

 

 

4,927

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, basic

 

$

0.80

 

 

$

0.91

 

 

$

0.54

 

 

$

0.60

 

 

$

0.72

 

Weighted average shares outstanding, basic

 

 

6,875,826

 

 

 

6,851,153

 

 

 

6,832,626

 

 

 

6,832,452

 

 

 

6,832,130

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, diluted

 

$

0.79

 

 

$

0.89

 

 

$

0.53

 

 

$

0.60

 

 

$

0.72

 

Weighted average shares outstanding, diluted

 

 

6,960,020

 

 

 

6,969,223

 

 

 

6,894,532

 

 

 

6,842,336

 

 

 

6,859,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

 

Three Months Ended

Noninterest Income Detail

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

$

541

 

 

$

567

 

 

$

552

 

 

$

538

 

 

$

387

 

ATM and interchange fees

 

 

632

 

 

 

665

 

 

 

642

 

 

 

593

 

 

 

585

 

Net unrealized gain on equity securities

 

 

47

 

 

 

78

 

 

 

28

 

 

 

419

 

 

 

6

 

Net gain on equity securities

 

 

 

 

 

403

 

 

 

 

 

 

 

 

 

 

Net gain on sales of loans, Small Business Administration

 

 

1,078

 

 

 

711

 

 

 

647

 

 

 

581

 

 

 

951

 

Net gain on sales of loans, home equity lines of credit

 

 

 

 

 

2,492

 

 

 

 

 

 

 

 

 

 

Mortgage banking income

 

 

104

 

 

 

78

 

 

 

6

 

 

 

49

 

 

 

53

 

Increase in cash surrender value of life insurance

 

 

380

 

 

 

361

 

 

 

363

 

 

 

353

 

 

 

333

 

Gain on life insurance

 

 

 

 

 

108

 

 

 

 

 

 

 

 

 

 

Commission income

 

 

255

 

 

 

210

 

 

 

294

 

 

 

220

 

 

 

220

 

Real estate lease income

 

 

122

 

 

 

121

 

 

 

122

 

 

 

154

 

 

 

115

 

Net gain (loss) on premises and equipment

 

 

 

 

 

45

 

 

 

(4

)

 

 

 

 

 

120

 

Other income

 

 

401

 

 

 

264

 

 

 

192

 

 

 

289

 

 

 

940

 

Total noninterest income

 

$

3,560

 

 

$

6,103

 

 

$

2,842

 

 

$

3,196

 

 

$

3,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

Consolidated Performance Ratios (Annualized)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.93

%

 

 

1.02

%

 

 

0.61

%

 

 

0.69

%

 

 

0.92

%

Return on average equity

 

 

12.24

%

 

 

14.07

%

 

 

8.52

%

 

 

9.86

%

 

 

13.06

%

Return on average common stockholders’ equity

 

 

12.34

%

 

 

14.07

%

 

 

8.52

%

 

 

9.86

%

 

 

13.06

%

Net interest margin (tax equivalent basis)

 

 

2.93

%

 

 

2.75

%

 

 

2.72

%

 

 

2.67

%

 

 

2.66

%

Efficiency ratio

 

 

70.06

%

 

 

69.29

%

 

 

70.55

%

 

 

70.11

%

 

 

65.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of or for the Three Months Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

Consolidated Asset Quality Ratios

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans as a percentage of total loans

 

 

0.67

%

 

 

0.87

%

 

 

0.85

%

 

 

0.91

%

 

 

0.82

%

Nonperforming assets as a percentage of total assets

 

 

0.55

%

 

 

0.71

%

 

 

0.71

%

 

 

0.72

%

 

 

0.68

%

Allowance for credit losses as a percentage of total loans

 

 

1.08

%

 

 

1.09

%

 

 

1.07

%

 

 

1.07

%

 

 

1.02

%

Allowance for credit losses as a percentage of nonperforming loans

 

 

161.04

%

 

 

124.85

%

 

 

125.69

%

 

 

118.12

%

 

 

124.01

%

Net charge-offs to average outstanding loans

 

 

-0.01

%

 

 

0.01

%

 

 

0.02

%

 

 

0.01

%

 

 

0.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

 

Three Months Ended

Segmented Statements of Income Information

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Core Banking Segment:

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

14,259

 

 

$

13,756

 

 

$

14,083

 

 

$

13,590

 

 

$

13,469

 

Provision (credit) for credit losses – loans

 

 

(540

)

 

 

(745

)

 

 

1,339

 

 

 

320

 

 

 

909

 

Provision (credit) for unfunded lending commitments

 

 

35

 

 

 

(75

)

 

 

78

 

 

 

64

 

 

 

(259

)

Provision (credit) for credit losses – securities

 

 

(1

)

 

 

(7

)

 

 

(86

)

 

 

84

 

 

 

23

 

Net interest income after provision (credit) for credit losses

 

 

14,765

 

 

 

14,583

 

 

 

12,752

 

 

 

13,122

 

 

 

12,796

 

Noninterest income

 

 

2,242

 

 

 

5,253

 

 

 

2,042

 

 

 

2,474

 

 

 

2,537

 

Noninterest expense

 

 

11,486

 

 

 

12,574

 

 

 

10,400

 

 

 

10,192

 

 

 

10,093

 

Income before income taxes

 

 

5,521

 

 

 

7,262

 

 

 

4,394

 

 

 

5,404

 

 

 

5,240

 

Income tax expense

 

 

452

 

 

 

893

 

 

 

301

 

 

 

689

 

 

 

729

 

Net income

 

$

5,069

 

 

$

6,369

 

 

$

4,093

 

 

$

4,715

 

 

$

4,511

 

 

 

 

 

 

 

 

 

 

 

 

SBA Lending Segment (Q2):

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

1,732

 

 

$

1,706

 

 

$

994

 

 

$

944

 

 

$

869

 

Provision (credit) for credit losses – loans

 

 

183

 

 

 

255

 

 

 

469

 

 

 

181

 

 

 

(196

)

Provision (credit) for unfunded lending commitments

 

 

88

 

 

 

121

 

 

 

(340

)

 

 

94

 

 

 

 

Net interest income after provision for credit losses

 

 

1,461

 

 

 

1,330

 

 

 

865

 

 

 

669

 

 

 

1,065

 

Noninterest income

 

 

1,318

 

 

 

850

 

 

 

800

 

 

 

722

 

 

 

1,173

 

Noninterest expense

 

 

2,212

 

 

 

2,369

 

 

 

2,242

 

 

 

2,239

 

 

 

1,685

 

Income (loss) before income taxes

 

 

567

 

 

 

(189

)

 

 

(577

)

 

 

(848

)

 

 

553

 

Income tax expense (benefit)

 

 

137

 

 

 

(45

)

 

 

(156

)

 

 

(206

)

 

 

137

 

Net income (loss)

 

$

430

 

 

$

(144

)

 

$

(421

)

 

$

(642

)

 

$

416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

 

Three Months Ended

Segmented Statements of Income Information

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands, except percentage data)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Per Share by Segment

 

 

 

 

 

 

 

 

 

 

Net income per share, basic – Core Banking

 

$

0.74

 

 

$

0.93

 

 

$

0.60

 

 

$

0.69

 

 

$

0.66

 

Net income (loss) per share, basic – SBA Lending (Q2)

 

 

0.06

 

 

 

(0.02

)

 

 

(0.06

)

 

 

(0.09

)

 

 

0.06

 

Total net income (loss) per share, basic

 

$

0.80

 

 

$

0.91

 

 

$

0.54

 

 

$

0.60

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) Per Diluted Share by Segment

 

 

 

 

 

 

 

 

 

 

Net income per share, diluted – Core Banking

 

$

0.73

 

 

$

0.91

 

 

$

0.59

 

 

$

0.69

 

 

$

0.66

 

Net income (loss) per share, diluted – SBA Lending (Q2)

 

 

0.06

 

 

 

(0.02

)

 

 

(0.06

)

 

 

(0.09

)

 

 

0.06

 

Total net income (loss) per share, diluted

 

$

0.79

 

 

$

0.89

 

 

$

0.53

 

 

$

0.60

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets by Segment (annualized) (3)

 

 

 

 

 

 

 

 

 

 

Core Banking

 

 

0.90

%

 

 

1.09

%

 

 

0.71

%

 

 

0.83

%

 

 

0.80

%

SBA Lending

 

 

1.58

%

 

 

(0.55

%)

 

 

(1.71

%)

 

 

(2.91

%)

 

 

1.81

%

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio by Segment (annualized) (3)

 

 

 

 

 

 

 

 

 

 

Core Banking

 

 

69.61

%

 

 

66.15

%

 

 

64.50

%

 

 

63.45

%

 

 

63.06

%

SBA Lending

 

 

72.52

%

 

 

92.68

%

 

 

124.97

%

 

 

134.39

%

 

 

82.52

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

Noninterest Expense Detail by Segment

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Core Banking Segment:

 

 

 

 

 

 

 

 

 

 

Compensation

 

$

6,637

 

 

$

7,245

 

 

$

5,400

 

 

$

5,587

 

 

$

5,656

 

Occupancy

 

 

1,648

 

 

 

1,577

 

 

 

1,554

 

 

 

1,573

 

 

 

1,615

 

Advertising

 

 

429

 

 

 

338

 

 

 

399

 

 

 

253

 

 

 

205

 

Other

 

 

2,772

 

 

 

3,414

 

 

 

3,047

 

 

 

2,779

 

 

 

2,617

 

Total Noninterest Expense

 

$

11,486

 

 

$

12,574

 

 

$

10,400

 

 

$

10,192

 

 

$

10,093

 

 

 

 

 

 

 

 

 

 

 

 

SBA Lending Segment (Q2):

 

 

 

 

 

 

 

 

 

 

Compensation

 

$

1,892

 

 

$

1,931

 

 

$

1,854

 

 

$

1,893

 

 

$

1,933

 

Occupancy

 

 

50

 

 

 

59

 

 

 

55

 

 

 

51

 

 

 

58

 

Advertising

 

 

10

 

 

 

14

 

 

 

17

 

 

 

12

 

 

 

7

 

Other

 

 

260

 

 

 

365

 

 

 

316

 

 

 

283

 

 

 

(313

)

Total Noninterest Expense

 

$

2,212

 

 

$

2,369

 

 

$

2,242

 

 

$

2,239

 

 

$

1,685

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

 

Three Months Ended

SBA Lending (Q2) Data

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands, except percentage data)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

 

 

 

 

 

 

 

 

 

Final funded loans guaranteed portion sold, SBA

 

$

15,716

 

 

$

10,785

 

 

$

10,880

 

 

$

7,515

 

 

$

15,144

 

 

 

 

 

 

 

 

 

 

 

 

Gross gain on sales of loans, SBA

 

$

1,508

 

 

$

1,141

 

 

$

1,029

 

 

$

811

 

 

$

1,443

 

Weighted average gross gain on sales of loans, SBA

 

 

9.60

%

 

 

10.58

%

 

 

9.46

%

 

 

10.79

%

 

 

9.53

%

 

 

 

 

 

 

 

 

 

 

 

Net gain on sales of loans, SBA (2)

 

$

1,078

 

 

$

711

 

 

$

647

 

 

$

581

 

 

$

951

 

Weighted average net gain on sales of loans, SBA

 

 

6.86

%

 

 

6.59

%

 

 

5.95

%

 

 

7.73

%

 

 

6.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

 

Three Months Ended

Summarized Consolidated Average Balance Sheets

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

(In thousands)

 

 

2025

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

 

 

2024

 

Interest-earning assets

 

 

 

 

 

 

 

 

 

 

Average balances:

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits with banks

 

$

11,851

 

 

$

21,102

 

 

$

16,841

 

 

$

26,100

 

 

$

24,587

 

Loans

 

 

1,946,338

 

 

 

2,010,082

 

 

 

1,988,997

 

 

 

1,943,716

 

 

 

1,914,609

 

Investment securities – taxable

 

 

102,744

 

 

 

101,960

 

 

 

99,834

 

 

 

101,350

 

 

 

102,699

 

Investment securities – nontaxable

 

 

161,579

 

 

 

160,929

 

 

 

158,917

 

 

 

157,991

 

 

 

157,960

 

FRB and FHLB stock

 

 

24,986

 

 

 

24,986

 

 

 

24,986

 

 

 

24,986

 

 

 

24,986

 

Total interest-earning assets

 

$

2,247,498

 

 

$

2,319,059

 

 

$

2,289,575

 

 

$

2,254,143

 

 

$

2,224,841

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (tax equivalent basis):

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits with banks

 

$

168

 

 

$

210

 

 

$

209

 

 

$

324

 

 

$

261

 

Loans

 

 

27,998

 

 

 

29,617

 

 

 

29,450

 

 

 

28,155

 

 

 

27,133

 

Investment securities – taxable

 

 

921

 

 

 

914

 

 

 

910

 

 

 

918

 

 

 

923

 

Investment securities – nontaxable

 

 

1,719

 

 

 

1,715

 

 

 

1,685

 

 

 

1,665

 

 

 

1,662

 

FRB and FHLB stock

 

 

511

 

 

 

493

 

 

 

471

 

 

 

519

 

 

 

499

 

Total interest income (tax equivalent basis)

 

$

31,317

 

 

$

32,949

 

 

$

32,725

 

 

$

31,581

 

 

$

30,478

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average yield (tax equivalent basis, annualized):

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits with banks

 

 

5.67

%

 

 

3.98

%

 

 

4.96

%

 

 

4.97

%

 

 

4.25

%

Loans

 

 

5.75

%

 

 

5.89

%

 

 

5.92

%

 

 

5.79

%

 

 

5.67

%

Investment securities – taxable

 

 

3.59

%

 

 

3.59

%

 

 

3.65

%

 

 

3.62

%

 

 

3.59

%

Investment securities – nontaxable

 

 

4.26

%

 

 

4.26

%

 

 

4.24

%

 

 

4.22

%

 

 

4.21

%

FRB and FHLB stock

 

 

8.18

%

 

 

7.89

%

 

 

7.54

%

 

 

8.31

%

 

 

7.99

%

Total interest-earning assets

 

 

5.57

%

 

 

5.68

%

 

 

5.72

%

 

 

5.60

%

 

 

5.48

%

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

1,653,058

 

 

$

1,671,156

 

 

$

1,563,258

 

 

$

1,572,871

 

 

$

1,549,012

 

Federal Home Loan Bank borrowings

 

 

266,975

 

 

 

315,583

 

 

 

378,956

 

 

 

351,227

 

 

 

333,275

 

Subordinated debt and other borrowings

 

 

48,656

 

 

 

48,616

 

 

 

48,576

 

 

 

48,537

 

 

 

48,497

 

Total interest-bearing liabilities

 

$

1,968,689

 

 

$

2,035,355

 

 

$

1,990,790

 

 

$

1,972,635

 

 

$

1,930,784

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

12,069

 

 

$

13,606

 

 

$

12,825

 

 

$

12,740

 

 

$

12,546

 

Federal Home Loan Bank borrowings

 

 

2,001

 

 

 

2,617

 

 

 

3,521

 

 

 

3,021

 

 

 

2,298

 

Subordinated debt and other borrowings

 

 

762

 

 

 

764

 

 

 

800

 

 

 

799

 

 

 

833

 

Total interest expense

 

$

14,832

 

 

$

16,987

 

 

$

17,146

 

 

$

16,560

 

 

$

15,677

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average cost (annualized):

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

 

2.92

%

 

 

3.26

%

 

 

3.28

%

 

 

3.24

%

 

 

3.24

%

Federal Home Loan Bank borrowings

 

 

3.00

%

 

 

3.32

%

 

 

3.72

%

 

 

3.44

%

 

 

2.76

%

Subordinated debt and other borrowings

 

 

6.26

%

 

 

6.29

%

 

 

6.59

%

 

 

6.58

%

 

 

6.87

%

Total interest-bearing liabilities

 

 

3.01

%

 

 

3.34

%

 

 

3.45

%

 

 

3.36

%

 

 

3.25

%

 

 

 

 

 

 

 

 

 

 

 

Net interest income (taxable equivalent basis)

 

$

16,485

 

 

$

15,962

 

 

$

15,579

 

 

$

15,021

 

 

$

14,801

 

Less: taxable equivalent adjustment

 

 

(494

)

 

 

(500

)

 

 

(502

)

 

 

(487

)

 

 

(463

)

Net interest income

 

$

15,991

 

 

$

15,462

 

 

$

15,077

 

 

$

14,534

 

 

$

14,338

 

 

 

 

 

 

 

 

 

 

 

 

Interest rate spread (tax equivalent basis, annualized)

 

 

2.56

%

 

 

2.34

%

 

 

2.27

%

 

 

2.24

%

 

 

2.23

%

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (tax equivalent basis, annualized)

 

 

2.93

%

 

 

2.75

%

 

 

2.72

%

 

 

2.67

%

 

 

2.66

%


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