First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the
"Company"), the holding company for First Savings Bank (the
"Bank"), today reported net income of $8.2 million, or $1.19 per
diluted share, for the year ended September 30, 2023 compared to
net income of $15.4 million, or $2.15 per diluted share, for the
year ended September 30, 2022. Excluding nonrecurring items, the
Company reported net income of $12.7 million (non-GAAP measure)(1)
and net income per diluted share of $1.85 (non-GAAP measure)(1) for
the year ended September 30, 2023; compared to net income of $17.1
million (non-GAAP measure)(1) and net income per diluted share of
$2.40 (non-GAAP measure)(1) for the year ended September 30, 2022.
Commenting on the Company’s performance, Larry
W. Myers, President and CEO, stated “As we navigated the
challenging environment for the banking industry during fiscal
2023, we focused on reducing balance sheet and operating
inefficiencies, risks that could result in earnings volatility, and
complexity of the organization, particularly in the fourth fiscal
quarter. Many of these measures are highlighted below and
quantified in the included table reconciling GAAP and non-GAAP
financial measures. In addition to these repositioning measures, we
focused on core banking; asset quality; selective high-quality
lending; deposit growth; building the SBA lending pipeline; and
improvement of liquidity, capital and interest rate sensitivity
positions. We believe the measures taken will deliver shareholder
value and we’ll continue to evaluate options that will further
position the Company for future success.”
Recent Actions to Reduce Inefficiencies
and Potential Earnings Volatility
- In the June 2023 quarter ended, utilized gain on repurchase of
subordinated debt as an opportunity to sell $78.5 million of
available for sale securities that were yielding less than the
marginal cost of funding.
- In August 2023, converted the Bank’s data processing system to
FIS Horizon.
- In September 2023, entered into a letter of intent to sell the
Bank’s residential mortgage servicing rights portfolio with a close
anticipated for November 30, 2023.
- In September 2023, dissolved First Savings Insurance Risk
Management, Inc., the Company’s captive insurance subsidiary.
- In October 2023, announced that the Bank will cease national
originate-to-sell mortgage banking operations during the quarter
ending December 31, 2023.
(1) Non-GAAP net income and net income per diluted
share exclude certain nonrecurring items. A reconciliation to GAAP
and discussion of the use of non-GAAP measures is included in the
table at the end of this release.
Results of Operations for the Fiscal
Years Ended September 30, 2023 and 2022
Net interest income increased $922,000, or 1.5%,
to $61.6 million for the year ended September 30, 2023 as compared
to the prior year. The increase in net interest income was due to a
$32.0 million increase in interest income, partially offset by a
$31.1 million increase in interest expense. Interest income
increased due to an increase in the average balance of
interest-earning assets of $385.8 million, from $1.67 billion for
2022 to $2.05 billion for 2023, and an increase in the
weighted-average tax-equivalent yield, from 4.35% for 2022 to 5.13%
for 2023. The increase in the average balance of interest-earning
assets was primarily due to an increase in the average balance of
loans of $322.9 million and an increase in the average balance of
investment securities of $67.2 million. Interest expense increased
due to an increase in the average balance of interest-bearing
liabilities of $390.6 million, from $1.32 billion for 2022 to $1.71
billion for 2023, and an increase in the average cost of
interest-bearing liabilities, from 0.78% for 2022 to 2.44% for
2023. The increase in the average cost of interest-bearing
liabilities for 2023 was due primarily to higher rates paid for
FHLB borrowings, brokered deposits, and money market deposit
accounts primarily as a result of increased market interest rates
and a $91.4 million migration of deposit balances from
noninterest-bearing to interest-bearing.
The Company recognized a provision for loan
losses of $2.6 million for the year ended September 30, 2023 due
primarily to loan portfolio growth, compared to a provision for
loan losses of $1.9 million for the prior year. Nonperforming
loans, which consist of nonaccrual loans and loans over 90 days
past due and still accruing interest, increased $3.1 million from
$10.9 million at September 30, 2022 to $13.9 million at September
30, 2023. The Company recognized net charge-offs of $1.1 million
for the year ended September 30, 2023, of which $873,000 was
related to unguaranteed portions of SBA loans, compared to net
charge-offs of $849,000 in 2022, of which $733,000 was related to
unguaranteed portions of SBA loans.
Noninterest income decreased $25.9 million for
the year ended September 30, 2023 as compared to the prior year.
The decrease was due primarily to a $24.0 million decrease in
mortgage banking income in 2023 compared to the same period in
2022. The decrease in mortgage banking income was primarily due to
lower origination and sales volume in 2023 compared to 2022.
Mortgage loans originated for sale were $587.7 million in the year
ended September 30, 2023 as compared to $1.61 billion for the prior
year.
Noninterest expense decreased $16.5 million for
the year ended September 30, 2023 as compared to the prior year.
The decrease was due primarily to a decrease in compensation and
benefits and professional fees of $17.3 million and $3.7 million,
respectively, partially offset by a $2.2 million increase in data
processing expense. The decrease in compensation and benefits
expense was due primarily to a reduction in staff and incentive
compensation for the Company’s mortgage banking segment as a result
of decreased mortgage banking volume. The decrease in professional
fees was due primarily to a $2.0 million consulting fee incurred in
2022 in connection with negotiating a new core processing contract.
The increase in data processing expense is primarily due to
one-time charges totaling $1.4 million in connection with the
conversion of the Bank’s data processing system.
The Company recognized income tax expense of
$10,000 for the year ended September 30, 2023 compared to income
tax expense of $1.9 million for the prior year. The effective tax
rate for the 2023 period was 0.1% as compared to 11.1% for 2022.
The decrease in the effective tax rate in 2023 was primarily due to
the recognition of investment tax credits related to solar projects
in 2023 and lower pre-tax income in 2023 as compared to 2022. The
lower pre-tax income for 2023 is due primarily to losses incurred
for mortgage banking operations, professional fees related to
mortgage banking loss contingencies, and expenses related to the
conversion of the Bank’s data processing system.
Results of Operations for the Three
Months Ended September 30, 2023 and 2022
The Company reported a net loss of $747,000, or
$0.11 per diluted share, for the three months ended September 30,
2023 compared to net income of $1.4 million, or $0.20 per diluted
share, for the three months ended September 30, 2022. Excluding
nonrecurring items, the Company reported net income of $2.8 million
(non-GAAP measure)(1) and net income per diluted share of $0.41
(non-GAAP measure)(1) for the three months ended September 30,
2023; compared to net income of $3.1 million (non-GAAP measure)(1)
and net income per diluted share of $0.44 (non-GAAP measure)(1) for
the three months ended September 30, 2022.
Net interest income decreased $1.3 million, or
7.7%, to $15.5 million for the three months ended September 30,
2023 as compared to the same period 2022. The decrease in net
interest income was due to an $8.3 million increase in interest
expense, partially offset by a $7.0 million increase in interest
income. Interest income increased due to an increase in the average
balance of interest-earning assets of $257.0 million, from $1.85
billion for 2022 to $2.11 billion for 2023, and an increase in the
weighted-average tax-equivalent yield, from 4.64% for 2022 to 5.42%
for 2023. The increase in the average balance of interest-earning
assets was primarily due to increases in the average balance of
loans $317.6 million, partially offset by a decrease in the average
balance of investment securities of $58.9 million. Interest expense
increased due to an increase in the average balance of
interest-bearing liabilities of $311.5 million, from $1.48 billion
for 2022 to $1.79 billion for 2023, and an increase in the average
cost of interest-bearing liabilities, from 1.12% for 2022 to 2.82%
for 2023. The increase in the average cost of interest-bearing
liabilities for 2023 was due primarily to higher rates for FHLB
borrowings, brokered deposits, and money market deposit accounts as
a result of increased market interest rates.
The Company recognized a provision for loan
losses of $815,000 for the three months ended September 30, 2023,
compared to $880,000 for the same period in 2022. The Company
recognized net charge-offs of $753,000 for the three months ended
September 30, 2023, of which $609,000 was related to unguaranteed
portions of SBA loans, compared to net charge-offs of $500,000 in
2022, of which $404,000 was related to unguaranteed portions of SBA
loans.
Noninterest income increased $911,000 for the
three months ended September 30, 2023 as compared to the same
period in 2022. The increase was due primarily to an increases in
mortgage banking income of $772,000. The increase in mortgage
banking income was primarily due to higher origination, sales
volume, and gain on sale margins in the 2023 period compared to
2022. Mortgage loans originated for sale were $195.5 million in the
three months ended September 30, 2023 as compared to $186.0 million
in the same period in 2022.
Noninterest expense increased $2.1 million for
the three months ended September 30, 2023 as compared to the same
period in 2022. The increase was due primarily to increases in
other operating expense and data processing of $2.7 million and
$1.4 million, respectively, partially offset by a decrease of $2.6
million in professional fees. The increase in other operating
expense was primarily due to SBA-guaranteed loan contingencies and
mortgage banking loss contingencies, including related professional
fees, of $1.0 million and $1.6 million, respectively, during the
three months ended September 30, 2023. The increase in data
processing expense is primarily due to one-time charges totaling
$1.3 million in connection with the conversion of the Bank’s data
processing system. The decrease in professional fees was primarily
due to a $2.0 million consulting fee incurred in the 2022 period in
connection with negotiating the new data processing contract.
The Company recognized income tax benefit of
$737,000 for the three months ended September 30, 2023 compared to
tax benefit of $446,000 for the same period in 2022. The increase
in the income tax benefit was primarily due to the recognition of
investment tax credits related to solar projects in 2023 and a
pre-tax loss in 2023 compared to pre-tax income in 2022.
Comparison of Financial Condition at
September 30, 2023 and September 30, 2022
Total assets increased $195.1 million, from
$2.09 billion at September 30, 2022 to $2.29 billion at September
30, 2023. Net loans held for investment increased $295.7 million
during the year ended September 30, 2023 due primarily to growth in
residential mortgage and single-tenant net lease commercial real
estate loans. Available-for-sale securities decreased $88.8 million
during the year ended September 30, 2023 due primarily to the sale
of $78.5 million of securities in June 2023 and scheduled
amortization and maturities. The proceeds from which were used to
repay brokered deposits and FHLB borrowings.
Total liabilities increased $195.7 million due
primarily to increases in total deposits and FHLB borrowings of
$172.5 million and $55.9 million, respectively, partially offset by
a $39.8 million decrease in other borrowings primarily due to the
reversal of secured borrowings recorded at September 30, 2022. The
increase in total deposits was due primarily increases in brokered
deposits, money market deposit accounts, retail time deposits, and
interest-bearing checking of $145.8 million, $85.5 million, $41.1
million and $21.6 million, respective, partially offset by
decreases in noninterest-bearing deposits and savings accounts of
$91.4 million and $30.1 million, respectively. The increases in
deposits and FHLB borrowings were primarily used to fund loan
growth. As of September 30, 2023, deposits exceeding the FDIC
insurance limit of $250,000 per insured account were 27.5% of total
deposits and excluding public funds insured by the Indiana Public
Deposit Insurance Fund, uninsured deposits totaled 12.8% of total
deposits.
Common stockholders’ equity decreased $584,000,
from $151.6 million at September 30, 2022 to $151.0 million at
September 30, 2023, due primarily to a $2.6 million increase in
treasury stock and an increase in accumulated other comprehensive
loss of $2.5 million, partially offset by an increase in retained
net income of $4.4 million. The increase in treasury stock was due
to the repurchase of 124,710 of Company common shares during the
year ended September 30, 2023. The increase in accumulated other
comprehensive loss was primarily due to increasing long term market
interest rates during the year ended September 30, 2023, which
resulted in a decrease in the fair value of the available-for-sale
securities portfolio. At September 30, 2023 and September 30, 2022,
the Bank was considered “well-capitalized” under applicable
regulatory capital guidelines.
First Savings Bank is an entrepreneurial
community bank headquartered in Jeffersonville, Indiana, which is
directly across the Ohio River from Louisville, Kentucky, and
operates fifteen depository branches within Southern Indiana. The
Bank also has two national lending programs, including
single-tenant net lease commercial real estate and SBA lending,
with offices located predominately in the Midwest. 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; 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 |
YEARS ENDED
SEPTEMBER 30, 2023 AND 2022 |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Years
Ended |
|
|
OPERATING DATA: |
September 30, |
|
September 30, |
|
|
(In
thousands, except share and per share data) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest income |
$ |
28,137 |
|
|
$ |
21,152 |
|
|
$ |
103,229 |
|
|
$ |
71,194 |
|
|
|
Total
interest expense |
|
12,601 |
|
|
|
4,327 |
|
|
|
41,655 |
|
|
|
10,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
15,536 |
|
|
|
16,825 |
|
|
|
61,574 |
|
|
|
60,652 |
|
|
|
Provision
for loan losses |
|
815 |
|
|
|
880 |
|
|
|
2,612 |
|
|
|
1,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income after provision for loan losses |
|
14,721 |
|
|
|
15,945 |
|
|
|
58,962 |
|
|
|
58,744 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest income |
|
5,442 |
|
|
|
4,531 |
|
|
|
25,342 |
|
|
|
51,227 |
|
|
|
Total
noninterest expense |
|
21,647 |
|
|
|
19,514 |
|
|
|
76,122 |
|
|
|
92,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) before income taxes |
|
(1,484 |
) |
|
|
962 |
|
|
|
8,182 |
|
|
|
17,309 |
|
|
|
Income tax
expense (benefit) |
|
(737 |
) |
|
|
(446 |
) |
|
|
10 |
|
|
|
1,923 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
(747 |
) |
|
$ |
1,408 |
|
|
$ |
8,172 |
|
|
$ |
15,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share, basic |
$ |
(0.11 |
) |
|
$ |
0.20 |
|
|
$ |
1.19 |
|
|
$ |
2.18 |
|
|
|
Weighted
average shares outstanding, basic |
|
6,817,365 |
|
|
|
6,988,873 |
|
|
|
6,848,311 |
|
|
|
7,058,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share, diluted |
$ |
(0.11 |
) |
|
$ |
0.20 |
|
|
$ |
1.19 |
|
|
$ |
2.15 |
|
|
|
Weighted
average shares outstanding, diluted |
|
6,837,919 |
|
|
|
7,056,138 |
|
|
|
6,880,072 |
|
|
|
7,141,846 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance
ratios (annualized) |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
(0.13 |
%) |
|
|
0.28 |
% |
|
|
0.37 |
% |
|
|
0.83 |
% |
|
|
Return on average equity |
|
(1.82 |
%) |
|
|
3.30 |
% |
|
|
5.04 |
% |
|
|
8.65 |
% |
|
|
Return on average common stockholders' equity |
|
(1.82 |
%) |
|
|
3.30 |
% |
|
|
5.04 |
% |
|
|
8.65 |
% |
|
|
Net interest margin (tax equivalent basis) |
|
3.03 |
% |
|
|
3.75 |
% |
|
|
3.10 |
% |
|
|
3.72 |
% |
|
|
Efficiency ratio |
|
103.19 |
% |
|
|
91.37 |
% |
|
|
87.58 |
% |
|
|
82.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD |
|
|
|
FYTD |
FINANCIAL CONDITION DATA: |
September
30, |
|
June
30, |
|
Increase |
|
September
30, |
|
Increase |
(In
thousands, except per share data) |
|
2023 |
|
|
|
2023 |
|
|
(Decrease) |
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,288,854 |
|
|
$ |
2,260,421 |
|
|
$ |
28,433 |
|
|
$ |
2,093,725 |
|
|
$ |
195,129 |
|
Cash and
cash equivalents |
|
30,845 |
|
|
|
42,475 |
|
|
|
(11,630 |
) |
|
|
41,665 |
|
|
|
(10,820 |
) |
Investment
securities |
|
229,039 |
|
|
|
249,788 |
|
|
|
(20,749 |
) |
|
|
318,075 |
|
|
|
(89,036 |
) |
Loans held
for sale |
|
45,855 |
|
|
|
63,142 |
|
|
|
(17,287 |
) |
|
|
60,462 |
|
|
|
(14,607 |
) |
Gross
loans |
|
1,787,143 |
|
|
|
1,708,127 |
|
|
|
79,016 |
|
|
|
1,489,904 |
|
|
|
297,239 |
|
Allowance
for loan losses |
|
16,900 |
|
|
|
16,838 |
|
|
|
62 |
|
|
|
15,360 |
|
|
|
1,540 |
|
Interest
earning assets |
|
2,083,397 |
|
|
|
2,048,891 |
|
|
|
34,506 |
|
|
|
1,898,051 |
|
|
|
185,346 |
|
Goodwill |
|
9,848 |
|
|
|
9,848 |
|
|
|
- |
|
|
|
9,848 |
|
|
|
- |
|
Core deposit
intangibles |
|
561 |
|
|
|
614 |
|
|
|
(53 |
) |
|
|
775 |
|
|
|
(214 |
) |
Loan
servicing rights |
|
62,819 |
|
|
|
64,139 |
|
|
|
(1,320 |
) |
|
|
67,194 |
|
|
|
(4,375 |
) |
Noninterest-bearing deposits |
|
248,759 |
|
|
|
315,602 |
|
|
|
(66,843 |
) |
|
|
340,172 |
|
|
|
(91,413 |
) |
Interest-bearing deposits (1) |
|
1,439,557 |
|
|
|
1,344,163 |
|
|
|
95,394 |
|
|
|
1,175,662 |
|
|
|
263,895 |
|
Federal Home
Loan Bank borrowings |
|
363,183 |
|
|
|
345,000 |
|
|
|
18,183 |
|
|
|
307,303 |
|
|
|
55,880 |
|
Subordinated
debt and other borrowings |
|
48,444 |
|
|
|
48,387 |
|
|
|
57 |
|
|
|
88,206 |
|
|
|
(39,762 |
) |
Total
liabilities |
|
2,137,873 |
|
|
|
2,095,353 |
|
|
|
42,520 |
|
|
|
1,942,160 |
|
|
|
195,713 |
|
Accumulated
other comprehensive loss |
|
(29,587 |
) |
|
|
(17,565 |
) |
|
|
(12,022 |
) |
|
|
(27,079 |
) |
|
|
(2,508 |
) |
Stockholders' equity |
|
150,981 |
|
|
|
165,068 |
|
|
|
(14,087 |
) |
|
|
151,565 |
|
|
|
(584 |
) |
|
|
|
|
|
|
|
|
|
|
Book value
per share |
$ |
21.99 |
|
|
$ |
24.04 |
|
|
$ |
(2.06 |
) |
|
$ |
21.74 |
|
|
$ |
0.25 |
|
Tangible
book value per share (2) |
|
20.47 |
|
|
|
22.52 |
|
|
|
(2.05 |
) |
|
|
20.22 |
|
|
|
0.25 |
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets: |
|
|
|
|
|
|
|
|
|
Nonaccrual loans - SBA guaranteed |
$ |
5,091 |
|
|
$ |
5,753 |
|
|
$ |
(662 |
) |
|
$ |
5,474 |
|
|
$ |
(383 |
) |
Nonaccrual loans |
|
8,857 |
|
|
|
5,954 |
|
|
|
2,903 |
|
|
|
5,382 |
|
|
|
3,475 |
|
Total nonaccrual loans |
$ |
13,948 |
|
|
$ |
11,707 |
|
|
$ |
2,241 |
|
|
$ |
10,856 |
|
|
$ |
3,092 |
|
Accruing loans past due 90 days |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total non-performing loans |
|
13,948 |
|
|
|
11,707 |
|
|
|
2,241 |
|
|
|
10,856 |
|
|
|
3,092 |
|
Foreclosed real estate |
|
474 |
|
|
|
30 |
|
|
|
444 |
|
|
|
- |
|
|
|
474 |
|
Troubled debt restructurings classified as performing loans |
|
1,266 |
|
|
|
2,373 |
|
|
|
(1,107 |
) |
|
|
2,714 |
|
|
|
(1,448 |
) |
Total non-performing assets |
$ |
15,688 |
|
|
$ |
14,110 |
|
|
$ |
1,578 |
|
|
$ |
13,570 |
|
|
$ |
2,118 |
|
|
|
|
|
|
|
|
|
|
|
Asset
quality ratios: |
|
|
|
|
|
|
|
|
|
Allowance for loan losses as a percent of total gross loans |
|
0.95 |
% |
|
|
0.99 |
% |
|
|
(0.04 |
%) |
|
|
1.03 |
% |
|
|
(0.08 |
%) |
Allowance for loan losses as a percent of nonperforming loans |
|
121.16 |
% |
|
|
143.83 |
% |
|
|
(22.66 |
%) |
|
|
141.49 |
% |
|
|
(20.32 |
%) |
Nonperforming loans as a percent of total gross loans |
|
0.78 |
% |
|
|
0.69 |
% |
|
|
0.10 |
% |
|
|
0.73 |
% |
|
|
0.05 |
% |
Nonperforming assets as a percent of total assets |
|
0.69 |
% |
|
|
0.62 |
% |
|
|
0.06 |
% |
|
|
0.65 |
% |
|
|
0.04 |
% |
|
|
|
|
|
|
|
|
|
|
(1) Includes $438.3,
$414.2 million and $292.5 million of brokered certificates of
deposit at September 30, 2023, June 30, 2023 and September 30,
2022, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
(2) 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 |
|
Year
Ended |
|
|
Net
Income |
September 30, |
|
September 30, |
|
|
(In
thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to the Company (non-GAAP) |
$ |
2,824 |
|
|
$ |
3,137 |
|
|
$ |
12,731 |
|
|
$ |
17,115 |
|
|
|
Plus: Gain from repurchase of subordinated debt, net of tax
effect |
|
- |
|
|
|
- |
|
|
|
513 |
|
|
|
- |
|
|
|
Less: Net loss on sales of available for sale securities and time
deposits, net of tax effect |
|
- |
|
|
|
- |
|
|
|
(429 |
) |
|
|
- |
|
|
|
Less: Data processing contract consulting, net of tax effect |
|
- |
|
|
|
(1,575 |
) |
|
|
- |
|
|
|
(1,575 |
) |
|
|
Less: Data processing system conversion, net of tax effect |
|
(979 |
) |
|
|
- |
|
|
|
(1,119 |
) |
|
|
- |
|
|
|
Less: MSR valuation allowance for intended sale, net of tax
effect |
|
(598 |
) |
|
|
- |
|
|
|
(598 |
) |
|
|
- |
|
|
|
Less: SBA-guaranteed loan contingency, net of tax effect |
|
(779 |
) |
|
|
(154 |
) |
|
|
(1,160 |
) |
|
|
(154 |
) |
|
|
Less: Mortgage banking loss contingencies, net of tax effect |
|
(296 |
) |
|
|
- |
|
|
|
(847 |
) |
|
|
- |
|
|
|
Less: Professional fees related to mortgage banking loss
contingencies, net of tax effect |
|
(919 |
) |
|
|
- |
|
|
|
(919 |
) |
|
|
- |
|
|
|
Net income (loss) attributable to the Company (GAAP) |
$ |
(747 |
) |
|
$ |
1,408 |
|
|
$ |
8,172 |
|
|
$ |
15,386 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year
Ended |
|
|
Net
Income per Share, Diluted |
September 30, |
|
September 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share, diluted (non-GAAP) |
$ |
0.41 |
|
|
$ |
0.44 |
|
|
$ |
1.85 |
|
|
$ |
2.40 |
|
|
|
Plus: Gain from repurchase of subordinated debt, net of tax
effect |
|
- |
|
|
|
- |
|
|
|
0.07 |
|
|
|
- |
|
|
|
Less: Net loss on sales of available for sale securities and time
deposits, net of tax effect |
|
- |
|
|
|
- |
|
|
|
(0.06 |
) |
|
|
- |
|
|
|
Less: Data processing contract consulting, net of tax effect |
|
- |
|
|
|
(0.22 |
) |
|
|
- |
|
|
|
(0.22 |
) |
|
|
Less: Data processing system conversion, net of tax effect |
|
(0.14 |
) |
|
|
- |
|
|
|
(0.16 |
) |
|
|
- |
|
|
|
Less: MSR valuation allowance for intended sale, net of tax
effect |
|
(0.09 |
) |
|
|
- |
|
|
|
(0.09 |
) |
|
|
- |
|
|
|
Less: SBA-guaranteed loan contingency, net of tax effect |
|
(0.11 |
) |
|
|
(0.02 |
) |
|
|
(0.17 |
) |
|
|
(0.02 |
) |
|
|
Less: Mortgage banking loss contingencies, net of tax effect |
|
(0.05 |
) |
|
|
- |
|
|
|
(0.12 |
) |
|
|
- |
|
|
|
Less: Professional fees related to mortgage banking loss
contingencies, net of tax effect |
|
(0.13 |
) |
|
|
- |
|
|
|
(0.13 |
) |
|
|
- |
|
|
|
Net income (loss) per share, diluted (GAAP) |
$ |
(0.11 |
) |
|
$ |
0.20 |
|
|
$ |
1.19 |
|
|
$ |
2.16 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year
Ended |
|
|
Efficiency Ratio |
September 30, |
|
September 30, |
|
|
(In
thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
15,536 |
|
|
$ |
16,825 |
|
|
$ |
61,574 |
|
|
$ |
60,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
|
5,442 |
|
|
|
4,531 |
|
|
|
25,342 |
|
|
|
51,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
21,647 |
|
|
|
19,514 |
|
|
|
76,122 |
|
|
|
92,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
103.19 |
% |
|
|
91.37 |
% |
|
|
87.58 |
% |
|
|
82.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
$ |
15,536 |
|
|
$ |
16,825 |
|
|
$ |
61,574 |
|
|
$ |
60,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
|
5,442 |
|
|
|
4,531 |
|
|
|
25,342 |
|
|
|
51,227 |
|
|
|
Plus: Gain from repurchase of subordinated debt |
|
- |
|
|
|
- |
|
|
|
660 |
|
|
|
- |
|
|
|
Less: Net loss on sales of available for sale securities and time
deposits |
|
- |
|
|
|
- |
|
|
|
(551 |
) |
|
|
- |
|
|
|
Noninterest income (Non-GAAP) |
|
5,442 |
|
|
|
4,531 |
|
|
|
25,451 |
|
|
|
51,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
21,647 |
|
|
|
19,514 |
|
|
|
76,122 |
|
|
|
92,662 |
|
|
|
Less: Data processing contract consulting |
|
- |
|
|
|
(2,017 |
) |
|
|
- |
|
|
|
(2,017 |
) |
|
|
Less: Data processing system conversion |
|
(1,259 |
) |
|
|
- |
|
|
|
(1,439 |
) |
|
|
- |
|
|
|
Less: MSR valuation allowance for intended sale |
|
(769 |
) |
|
|
- |
|
|
|
(769 |
) |
|
|
- |
|
|
|
Less: SBA-guaranteed loan contingency |
|
(1,001 |
) |
|
|
(197 |
) |
|
|
(1,491 |
) |
|
|
(197 |
) |
|
|
Less: Mortgage banking loss contingencies |
|
(380 |
) |
|
|
- |
|
|
|
(1,089 |
) |
|
|
- |
|
|
|
Less: Professional fees related to mortgage banking loss
contingencies |
|
(1,181 |
) |
|
|
- |
|
|
|
(1,181 |
) |
|
|
- |
|
|
|
Noninterest expense (non-GAAP) |
$ |
17,057 |
|
|
$ |
17,300 |
|
|
$ |
70,153 |
|
|
$ |
90,448 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (excluding nonrecurring items) (non-GAAP) |
|
81.31 |
% |
|
|
81.01 |
% |
|
|
80.61 |
% |
|
|
80.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QTD |
|
|
|
FYTD |
Tangible Book Value Per Share |
September
30, |
|
June
30, |
|
Increase |
|
September
30, |
|
Increase |
(In
thousands, except share and per share data) |
|
2023 |
|
|
|
2023 |
|
|
(Decrease) |
|
|
2022 |
|
|
(Decrease) |
|
|
|
|
|
|
|
|
|
|
Stockholders' equity, net of noncontrolling interests (GAAP) |
$ |
150,981 |
|
|
$ |
165,068 |
|
|
$ |
(14,087 |
) |
|
$ |
151,565 |
|
|
$ |
(584 |
) |
Less: goodwill and core deposit intangibles |
|
(10,409 |
) |
|
|
(10,462 |
) |
|
|
53 |
|
|
|
(10,623 |
) |
|
|
214 |
|
Tangible equity (non-GAAP) |
$ |
140,572 |
|
|
$ |
154,606 |
|
|
|
(14,034 |
) |
|
$ |
140,942 |
|
|
|
(370 |
) |
|
|
|
|
|
|
|
|
|
|
Outstanding common shares |
|
6,867,121 |
|
|
|
6,865,921 |
|
|
|
1,200 |
|
|
|
6,970,631 |
|
|
|
(103,510 |
) |
|
|
|
|
|
|
|
|
|
|
Tangible
book value per share (non-GAAP) |
$ |
20.47 |
|
|
$ |
22.52 |
|
|
$ |
(2.05 |
) |
|
$ |
20.22 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
Book value
per share (GAAP) |
$ |
21.99 |
|
|
$ |
24.04 |
|
|
$ |
(2.06 |
) |
|
$ |
21.74 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): |
As of |
Summarized Consolidated Balance Sheets |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands, except per share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Total cash
and cash equivalents |
$ |
30,845 |
|
|
$ |
42,475 |
|
|
$ |
41,810 |
|
|
$ |
38,278 |
|
|
$ |
41,665 |
|
Total
investment securities |
|
229,039 |
|
|
|
249,788 |
|
|
|
336,317 |
|
|
|
330,683 |
|
|
|
318,075 |
|
Total loans
held for sale |
|
45,855 |
|
|
|
63,142 |
|
|
|
48,783 |
|
|
|
44,281 |
|
|
|
60,462 |
|
Total loans,
net of allowance for loan losses |
|
1,770,243 |
|
|
|
1,691,289 |
|
|
|
1,598,440 |
|
|
|
1,582,940 |
|
|
|
1,474,544 |
|
Loan
servicing rights |
|
62,819 |
|
|
|
64,139 |
|
|
|
65,045 |
|
|
|
65,598 |
|
|
|
67,194 |
|
Total
assets |
|
2,288,854 |
|
|
|
2,260,421 |
|
|
|
2,239,606 |
|
|
|
2,196,919 |
|
|
|
2,093,725 |
|
|
|
|
|
|
|
|
|
|
|
Retail deposits |
$ |
1,249,997 |
|
|
$ |
1,245,534 |
|
|
$ |
1,206,154 |
|
|
$ |
1,211,677 |
|
|
$ |
1,223,330 |
|
Brokered deposits |
|
438,319 |
|
|
|
414,231 |
|
|
|
336,728 |
|
|
|
326,164 |
|
|
|
292,504 |
|
Total
deposits |
|
1,688,316 |
|
|
|
1,659,765 |
|
|
|
1,542,882 |
|
|
|
1,537,841 |
|
|
|
1,515,834 |
|
Federal Home
Loan Bank borrowings |
|
363,183 |
|
|
|
345,000 |
|
|
|
437,795 |
|
|
|
377,643 |
|
|
|
307,303 |
|
|
|
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital |
$ |
27,064 |
|
|
$ |
27,518 |
|
|
$ |
27,443 |
|
|
$ |
27,425 |
|
|
$ |
26,848 |
|
Retained earnings - substantially restricted |
|
166,306 |
|
|
|
168,015 |
|
|
|
166,652 |
|
|
|
163,890 |
|
|
|
161,927 |
|
Accumulated other comprehensive income (loss) |
|
(29,587 |
) |
|
|
(17,565 |
) |
|
|
(14,199 |
) |
|
|
(19,000 |
) |
|
|
(27,079 |
) |
Unearned stock compensation |
|
(1,015 |
) |
|
|
(1,113 |
) |
|
|
(1,211 |
) |
|
|
(1,361 |
) |
|
|
(969 |
) |
Less treasury stock, at cost |
|
(11,787 |
) |
|
|
(11,787 |
) |
|
|
(11,787 |
) |
|
|
(10,810 |
) |
|
|
(9,162 |
) |
Total
stockholders' equity |
|
150,981 |
|
|
|
165,068 |
|
|
|
166,898 |
|
|
|
160,144 |
|
|
|
151,565 |
|
|
|
|
|
|
|
|
|
|
|
Outstanding
common shares |
|
6,867,121 |
|
|
|
6,865,921 |
|
|
|
6,865,921 |
|
|
|
6,917,921 |
|
|
|
6,970,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Summarized Consolidated Statements of Income |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands, except per share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Total
interest income |
$ |
28,137 |
|
|
$ |
26,798 |
|
|
$ |
24,811 |
|
|
$ |
23,483 |
|
|
$ |
21,152 |
|
Total
interest expense |
|
12,601 |
|
|
|
11,933 |
|
|
|
9,899 |
|
|
|
7,222 |
|
|
|
4,327 |
|
Net interest
income |
|
15,536 |
|
|
|
14,865 |
|
|
|
14,912 |
|
|
|
16,261 |
|
|
|
16,825 |
|
Provision
for loan losses |
|
815 |
|
|
|
441 |
|
|
|
372 |
|
|
|
984 |
|
|
|
880 |
|
Net interest
income after provision for loan losses |
|
14,721 |
|
|
|
14,424 |
|
|
|
14,540 |
|
|
|
15,277 |
|
|
|
15,945 |
|
|
|
|
|
|
|
|
|
|
|
Total
noninterest income |
|
5,442 |
|
|
|
7,196 |
|
|
|
7,516 |
|
|
|
5,188 |
|
|
|
4,531 |
|
Total
noninterest expense |
|
21,647 |
|
|
|
18,965 |
|
|
|
17,999 |
|
|
|
17,511 |
|
|
|
19,514 |
|
Income
(loss) before income taxes |
|
(1,484 |
) |
|
|
2,655 |
|
|
|
4,057 |
|
|
|
2,954 |
|
|
|
962 |
|
Income tax
expense (benefit) |
|
(737 |
) |
|
|
331 |
|
|
|
333 |
|
|
|
83 |
|
|
|
(446 |
) |
Net income
(loss) |
$ |
(747 |
) |
|
$ |
2,324 |
|
|
$ |
3,724 |
|
|
$ |
2,871 |
|
|
$ |
1,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share, basic |
$ |
(0.11 |
) |
|
$ |
0.34 |
|
|
$ |
0.54 |
|
|
$ |
0.42 |
|
|
$ |
0.20 |
|
Weighted
average shares outstanding, basic |
|
6,817,365 |
|
|
|
6,816,608 |
|
|
|
6,842,897 |
|
|
|
6,915,909 |
|
|
|
6,988,873 |
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) per share, diluted |
$ |
(0.11 |
) |
|
$ |
0.34 |
|
|
$ |
0.54 |
|
|
$ |
0.41 |
|
|
$ |
0.20 |
|
Weighted
average shares outstanding, diluted |
|
6,837,919 |
|
|
|
6,819,748 |
|
|
|
6,881,496 |
|
|
|
6,972,055 |
|
|
|
7,056,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
Consolidated Performance Ratios (Annualized) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
(0.13 |
%) |
|
|
0.41 |
% |
|
|
0.68 |
% |
|
|
0.54 |
% |
|
|
0.28 |
% |
Return on average equity |
|
(1.82 |
%) |
|
|
5.60 |
% |
|
|
9.15 |
% |
|
|
7.50 |
% |
|
|
3.30 |
% |
Return on average common stockholders' equity |
|
(1.82 |
%) |
|
|
5.60 |
% |
|
|
9.15 |
% |
|
|
7.50 |
% |
|
|
3.30 |
% |
Net interest margin (tax equivalent basis) |
|
3.03 |
% |
|
|
2.94 |
% |
|
|
3.06 |
% |
|
|
3.41 |
% |
|
|
3.75 |
% |
Efficiency ratio |
|
103.19 |
% |
|
|
85.97 |
% |
|
|
80.25 |
% |
|
|
81.64 |
% |
|
|
91.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of or for the Three Months Ended |
|
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
Consolidated Asset Quality Ratios |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans as a percentage of total loans |
|
0.78 |
% |
|
|
0.69 |
% |
|
|
0.77 |
% |
|
|
0.72 |
% |
|
|
0.73 |
% |
Nonperforming assets as a percentage of total assets |
|
0.69 |
% |
|
|
0.62 |
% |
|
|
0.67 |
% |
|
|
0.64 |
% |
|
|
0.65 |
% |
Allowance for loan losses as a percentage of total loans |
|
0.95 |
% |
|
|
0.99 |
% |
|
|
1.02 |
% |
|
|
1.01 |
% |
|
|
1.03 |
% |
Allowance for loan losses as a percentage of nonperforming
loans |
|
121.16 |
% |
|
|
143.83 |
% |
|
|
132.20 |
% |
|
|
139.55 |
% |
|
|
141.49 |
% |
Net charge-offs to average outstanding loans |
|
0.04 |
% |
|
|
0.00 |
% |
|
|
-0.00 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
Segmented Statements of Income Information |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands, except per share data) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Core
Banking Segment: |
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
14,167 |
|
|
$ |
13,407 |
|
|
$ |
13,632 |
|
|
$ |
15,008 |
|
|
$ |
14,994 |
|
Provision
for loan losses |
|
1,266 |
|
|
|
880 |
|
|
|
422 |
|
|
|
701 |
|
|
|
769 |
|
Net interest
income after provision for loan losses |
|
12,901 |
|
|
|
12,527 |
|
|
|
13,210 |
|
|
|
14,307 |
|
|
|
14,225 |
|
Noninterest
income |
|
2,136 |
|
|
|
1,965 |
|
|
|
1,733 |
|
|
|
1,928 |
|
|
|
1,808 |
|
Noninterest
expense |
|
13,559 |
|
|
|
11,010 |
|
|
|
10,651 |
|
|
|
9,797 |
|
|
|
10,499 |
|
Income
before income taxes |
|
1,478 |
|
|
|
3,482 |
|
|
|
4,292 |
|
|
|
6,438 |
|
|
|
5,534 |
|
Income tax
expense |
|
3 |
|
|
|
561 |
|
|
|
401 |
|
|
|
946 |
|
|
|
735 |
|
Net
income |
$ |
1,475 |
|
|
$ |
2,921 |
|
|
$ |
3,891 |
|
|
$ |
5,492 |
|
|
$ |
4,799 |
|
|
|
|
|
|
|
|
|
|
|
SBA
Lending Segment (Q2): |
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
990 |
|
|
$ |
1,098 |
|
|
$ |
1,093 |
|
|
$ |
995 |
|
|
$ |
1,182 |
|
Provision
(credit) for loan losses |
|
(451 |
) |
|
|
(439 |
) |
|
|
(50 |
) |
|
|
283 |
|
|
|
111 |
|
Net interest
income after provision (credit) for loan losses |
|
1,441 |
|
|
|
1,537 |
|
|
|
1,143 |
|
|
|
712 |
|
|
|
1,071 |
|
Noninterest
income |
|
367 |
|
|
|
580 |
|
|
|
1,636 |
|
|
|
754 |
|
|
|
480 |
|
Noninterest
expense |
|
2,907 |
|
|
|
2,107 |
|
|
|
2,662 |
|
|
|
1,924 |
|
|
|
1,891 |
|
Income
(loss) before income taxes |
|
(1,099 |
) |
|
|
10 |
|
|
|
117 |
|
|
|
(458 |
) |
|
|
(340 |
) |
Income tax
expense (benefit) |
|
(273 |
) |
|
|
(21 |
) |
|
|
20 |
|
|
|
(107 |
) |
|
|
(123 |
) |
Net income
(loss) |
$ |
(826 |
) |
|
$ |
31 |
|
|
$ |
97 |
|
|
$ |
(351 |
) |
|
$ |
(217 |
) |
|
|
|
|
|
|
|
|
|
|
Mortgage Banking Segment: |
|
|
|
|
|
|
|
|
|
Net interest
income |
$ |
379 |
|
|
$ |
360 |
|
|
$ |
187 |
|
|
$ |
258 |
|
|
$ |
649 |
|
Provision
for loan losses |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net interest
income after provision for loan losses |
|
379 |
|
|
|
360 |
|
|
|
187 |
|
|
|
258 |
|
|
|
649 |
|
Noninterest
income |
|
2,939 |
|
|
|
4,651 |
|
|
|
4,147 |
|
|
|
2,506 |
|
|
|
2,243 |
|
Noninterest
expense |
|
5,181 |
|
|
|
5,848 |
|
|
|
4,686 |
|
|
|
5,790 |
|
|
|
7,124 |
|
Loss before
income taxes |
|
(1,863 |
) |
|
|
(837 |
) |
|
|
(352 |
) |
|
|
(3,026 |
) |
|
|
(4,232 |
) |
Income tax
benefit |
|
(467 |
) |
|
|
(209 |
) |
|
|
(88 |
) |
|
|
(756 |
) |
|
|
(1,058 |
) |
Net
loss |
$ |
(1,396 |
) |
|
$ |
(628 |
) |
|
$ |
(264 |
) |
|
$ |
(2,270 |
) |
|
$ |
(3,174 |
) |
|
|
|
|
|
|
|
|
|
|
Net
Income (Loss) Per Share by Segment |
|
|
|
|
|
|
|
|
|
Net income
per share, basic - Core Banking |
$ |
0.22 |
|
|
$ |
0.43 |
|
|
$ |
0.57 |
|
|
$ |
0.80 |
|
|
$ |
0.68 |
|
Net income
(loss) per share, basic - SBA Lending (Q2) |
|
(0.12 |
) |
|
|
- |
|
|
|
0.01 |
|
|
|
(0.05 |
) |
|
|
(0.03 |
) |
Net income
(loss) per share, basic - Mortgage Banking |
|
(0.21 |
) |
|
|
(0.09 |
) |
|
|
(0.04 |
) |
|
|
(0.33 |
) |
|
|
(0.45 |
) |
Total net income (loss) per share, basic |
$ |
(0.11 |
) |
|
$ |
0.34 |
|
|
$ |
0.54 |
|
|
$ |
0.42 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
Net
Income (Loss) Per Diluted Share by Segment |
|
|
|
|
|
|
|
|
|
Net income
per share, diluted - Core Banking |
$ |
0.22 |
|
|
$ |
0.43 |
|
|
$ |
0.57 |
|
|
$ |
0.79 |
|
|
$ |
0.68 |
|
Net income
(loss) per share, diluted - SBA Lending (Q2) |
|
(0.12 |
) |
|
|
- |
|
|
|
0.01 |
|
|
|
(0.05 |
) |
|
|
(0.03 |
) |
Net income
(loss) per share, diluted - Mortgage Banking |
|
(0.21 |
) |
|
|
(0.09 |
) |
|
|
(0.04 |
) |
|
|
(0.33 |
) |
|
|
(0.45 |
) |
Total net income (loss) per share, diluted |
$ |
(0.11 |
) |
|
$ |
0.34 |
|
|
$ |
0.54 |
|
|
$ |
0.41 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets by Segment
(annualized) |
|
|
|
|
|
|
|
|
|
Core
Banking |
|
0.28 |
% |
|
|
0.61 |
% |
|
|
0.85 |
% |
|
|
1.17 |
% |
|
|
1.08 |
% |
SBA
Lending |
|
(3.81 |
%) |
|
|
0.15 |
% |
|
|
0.42 |
% |
|
|
(1.38 |
%) |
|
|
(0.85 |
%) |
Mortgage
Banking |
|
(6.31 |
%) |
|
|
(2.24 |
%) |
|
|
(1.14 |
%) |
|
|
(9.31 |
%) |
|
|
(9.44 |
%) |
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio by Segment (annualized) |
|
|
|
|
|
|
|
|
|
Core
Banking |
|
83.17 |
% |
|
|
71.62 |
% |
|
|
69.32 |
% |
|
|
57.85 |
% |
|
|
62.49 |
% |
SBA
Lending |
|
214.22 |
% |
|
|
125.57 |
% |
|
|
97.54 |
% |
|
|
110.01 |
% |
|
|
113.78 |
% |
Mortgage
Banking |
|
156.15 |
% |
|
|
116.70 |
% |
|
|
108.12 |
% |
|
|
209.48 |
% |
|
|
246.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
Noninterest Expense Detail by Segment |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Core
Banking Segment: |
|
|
|
|
|
|
|
|
|
Compensation
(3) |
$ |
6,528 |
|
|
$ |
4,978 |
|
|
$ |
5,578 |
|
|
$ |
5,275 |
|
|
$ |
4,444 |
|
Occupancy |
|
1,418 |
|
|
|
1,738 |
|
|
|
1,401 |
|
|
|
1,443 |
|
|
|
1,374 |
|
Advertising |
|
404 |
|
|
|
334 |
|
|
|
298 |
|
|
|
213 |
|
|
|
272 |
|
Other |
|
5,209 |
|
|
|
3,960 |
|
|
|
3,374 |
|
|
|
2,866 |
|
|
|
4,409 |
|
Total
Noninterest Expense |
$ |
13,559 |
|
|
$ |
11,010 |
|
|
$ |
10,651 |
|
|
$ |
9,797 |
|
|
$ |
10,499 |
|
|
|
|
|
|
|
|
|
|
|
SBA
Lending Segment (Q2): |
|
|
|
|
|
|
|
|
|
Compensation |
$ |
1,533 |
|
|
$ |
1,803 |
|
|
$ |
1,800 |
|
|
$ |
1,622 |
|
|
$ |
1,690 |
|
Occupancy |
|
68 |
|
|
|
70 |
|
|
|
70 |
|
|
|
54 |
|
|
|
41 |
|
Advertising |
|
10 |
|
|
|
11 |
|
|
|
8 |
|
|
|
2 |
|
|
|
8 |
|
Other |
|
1,296 |
|
|
|
223 |
|
|
|
784 |
|
|
|
246 |
|
|
|
152 |
|
Total
Noninterest Expense |
$ |
2,907 |
|
|
$ |
2,107 |
|
|
$ |
2,662 |
|
|
$ |
1,924 |
|
|
$ |
1,891 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage Banking Segment: |
|
|
|
|
|
|
|
|
|
Compensation
(3) |
$ |
3,647 |
|
|
$ |
4,357 |
|
|
$ |
3,029 |
|
|
$ |
3,788 |
|
|
$ |
5,091 |
|
Occupancy |
|
395 |
|
|
|
469 |
|
|
|
449 |
|
|
|
363 |
|
|
|
491 |
|
Advertising |
|
129 |
|
|
|
191 |
|
|
|
213 |
|
|
|
203 |
|
|
|
319 |
|
Other |
|
1,010 |
|
|
|
831 |
|
|
|
995 |
|
|
|
1,436 |
|
|
|
1,223 |
|
Total
Noninterest Expense |
$ |
5,181 |
|
|
$ |
5,848 |
|
|
$ |
4,686 |
|
|
$ |
5,790 |
|
|
$ |
7,124 |
|
|
|
|
|
|
|
|
|
|
|
(3)
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: |
$ |
1,516 |
|
|
$ |
1,440 |
|
|
$ |
1,328 |
|
|
$ |
1,192 |
|
|
$ |
945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED)
(CONTINUED): |
Three Months Ended |
Mortgage Banking Noninterest Expense Fixed vs.
Variable |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Noninterest
Expense - Fixed Expenses |
$ |
3,467 |
|
|
$ |
3,715 |
|
|
$ |
3,513 |
|
|
$ |
4,561 |
|
|
$ |
5,724 |
|
Noninterest
Expense - Variable Expenses (4) |
|
1,714 |
|
|
|
2,133 |
|
|
|
1,173 |
|
|
|
1,229 |
|
|
|
1,400 |
|
Total
Noninterest Expense |
$ |
5,181 |
|
|
$ |
5,848 |
|
|
$ |
4,686 |
|
|
$ |
5,790 |
|
|
$ |
7,124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
SBA
Lending (Q2) Data |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands, except percentage data) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Final funded
loans guaranteed portion sold, SBA |
$ |
8,431 |
|
|
$ |
7,721 |
|
|
$ |
15,337 |
|
|
$ |
11,293 |
|
|
$ |
3,772 |
|
|
|
|
|
|
|
|
|
|
|
Gross gain
on sales of loans, SBA |
$ |
809 |
|
|
$ |
780 |
|
|
$ |
1,293 |
|
|
$ |
936 |
|
|
$ |
393 |
|
Weighted
average gross gain on sales of loans, SBA |
|
9.60 |
% |
|
|
10.10 |
% |
|
|
8.43 |
% |
|
|
8.29 |
% |
|
|
10.42 |
% |
|
|
|
|
|
|
|
|
|
|
Net gain on
sales of loans, SBA (5) |
$ |
538 |
|
|
$ |
497 |
|
|
$ |
907 |
|
|
$ |
775 |
|
|
$ |
249 |
|
Weighted
average net gain on sales of loans, SBA |
|
6.38 |
% |
|
|
6.44 |
% |
|
|
5.91 |
% |
|
|
6.86 |
% |
|
|
6.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Mortgage Banking Data |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands, except percentage data) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage
originations for sale in the secondary market |
$ |
195,469 |
|
|
$ |
199,601 |
|
|
$ |
115,011 |
|
|
$ |
77,605 |
|
|
$ |
185,981 |
|
|
|
|
|
|
|
|
|
|
|
Mortgage
sales |
$ |
220,609 |
|
|
$ |
185,557 |
|
|
$ |
99,711 |
|
|
$ |
96,177 |
|
|
$ |
241,804 |
|
|
|
|
|
|
|
|
|
|
|
Gross gain
on sales of loans, mortgage banking (6) |
$ |
3,304 |
|
|
$ |
3,570 |
|
|
$ |
2,308 |
|
|
$ |
1,217 |
|
|
$ |
2,630 |
|
Weighted
average gross gain on sales of loans, mortgage banking |
|
1.50 |
% |
|
|
1.92 |
% |
|
|
2.31 |
% |
|
|
1.27 |
% |
|
|
1.09 |
% |
|
|
|
|
|
|
|
|
|
|
Mortgage
banking income (7) |
$ |
3,018 |
|
|
$ |
4,668 |
|
|
$ |
4,149 |
|
|
$ |
2,496 |
|
|
$ |
2,246 |
|
|
|
|
|
|
|
|
|
|
|
(4) Variable
expenses include incentive compensation and advertising
expenses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) Inclusive of gains
on servicing assets and net of commissions, referral fees, SBA
repair fees and discounts on unguaranteed portions
held-for-investment. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) Inclusive of gains
on capitalized mortgage servicing rights, realized hedging gains
and loan fees, and net of lender credits and other investor
expenses. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) 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 |
September
30, |
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
(In
thousands) |
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
Interest-earning assets |
|
|
|
|
|
|
|
|
|
Average
balances: |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
$ |
21,631 |
|
|
$ |
20,661 |
|
|
$ |
27,649 |
|
|
$ |
19,379 |
|
|
$ |
28,318 |
|
Loans |
|
1,796,749 |
|
|
|
1,719,733 |
|
|
|
1,621,147 |
|
|
|
1,583,182 |
|
|
|
1,479,167 |
|
Investment securities - taxable |
|
105,393 |
|
|
|
109,319 |
|
|
|
110,373 |
|
|
|
111,936 |
|
|
|
94,836 |
|
Investment securities - nontaxable |
|
160,829 |
|
|
|
234,118 |
|
|
|
242,530 |
|
|
|
241,504 |
|
|
|
230,312 |
|
FRB and FHLB stock |
|
24,939 |
|
|
|
24,509 |
|
|
|
23,289 |
|
|
|
20,063 |
|
|
|
19,890 |
|
Total interest-earning assets |
$ |
2,109,541 |
|
|
$ |
2,108,340 |
|
|
$ |
2,024,988 |
|
|
$ |
1,976,064 |
|
|
$ |
1,852,523 |
|
|
|
|
|
|
|
|
|
|
|
Interest
income (tax equivalent basis): |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
$ |
266 |
|
|
$ |
267 |
|
|
$ |
192 |
|
|
$ |
144 |
|
|
$ |
97 |
|
Loans |
|
25,214 |
|
|
|
23,279 |
|
|
|
21,339 |
|
|
|
20,222 |
|
|
|
18,029 |
|
Investment securities - taxable |
|
969 |
|
|
|
984 |
|
|
|
957 |
|
|
|
955 |
|
|
|
740 |
|
Investment securities - nontaxable |
|
1,695 |
|
|
|
2,456 |
|
|
|
2,533 |
|
|
|
2,505 |
|
|
|
2,352 |
|
FRB and FHLB stock |
|
428 |
|
|
|
423 |
|
|
|
364 |
|
|
|
220 |
|
|
|
265 |
|
Total interest income (tax equivalent basis) |
$ |
28,572 |
|
|
$ |
27,409 |
|
|
$ |
25,385 |
|
|
$ |
24,046 |
|
|
$ |
21,483 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average yield (tax equivalent basis, annualized): |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits with banks |
|
4.92 |
% |
|
|
5.17 |
% |
|
|
2.78 |
% |
|
|
2.97 |
% |
|
|
1.37 |
% |
Loans |
|
5.61 |
% |
|
|
5.41 |
% |
|
|
5.27 |
% |
|
|
5.11 |
% |
|
|
4.88 |
% |
Investment securities - taxable |
|
3.68 |
% |
|
|
3.60 |
% |
|
|
3.47 |
% |
|
|
3.41 |
% |
|
|
3.12 |
% |
Investment securities - nontaxable |
|
4.22 |
% |
|
|
4.20 |
% |
|
|
4.18 |
% |
|
|
4.15 |
% |
|
|
4.08 |
% |
FRB and FHLB stock |
|
6.86 |
% |
|
|
6.90 |
% |
|
|
6.25 |
% |
|
|
4.39 |
% |
|
|
5.33 |
% |
Total interest-earning assets |
|
5.42 |
% |
|
|
5.20 |
% |
|
|
5.01 |
% |
|
|
4.87 |
% |
|
|
4.64 |
% |
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,385,994 |
|
|
$ |
1,278,776 |
|
|
$ |
1,251,080 |
|
|
$ |
1,213,419 |
|
|
$ |
1,125,659 |
|
Fed funds purchased |
|
76 |
|
|
|
11 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Federal Home Loan Bank borrowings |
|
353,890 |
|
|
|
434,182 |
|
|
|
374,593 |
|
|
|
311,146 |
|
|
|
301,027 |
|
Subordinated debt and other borrowings |
|
48,406 |
|
|
|
49,339 |
|
|
|
50,293 |
|
|
|
88,304 |
|
|
|
50,179 |
|
Total interest-bearing liabilities |
$ |
1,788,366 |
|
|
$ |
1,762,308 |
|
|
$ |
1,675,966 |
|
|
$ |
1,612,869 |
|
|
$ |
1,476,865 |
|
|
|
|
|
|
|
|
|
|
|
Interest
expense: |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
9,457 |
|
|
$ |
7,791 |
|
|
$ |
6,265 |
|
|
$ |
4,158 |
|
|
$ |
2,306 |
|
Repurchase agreements |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Fed funds purchased |
|
1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Federal Home Loan Bank borrowings |
|
2,459 |
|
|
|
3,446 |
|
|
|
2,915 |
|
|
|
1,919 |
|
|
|
1,111 |
|
Subordinated debt and other borrowings |
|
684 |
|
|
|
696 |
|
|
|
719 |
|
|
|
1,145 |
|
|
|
714 |
|
Total interest expense |
$ |
12,601 |
|
|
$ |
11,933 |
|
|
$ |
9,899 |
|
|
$ |
7,222 |
|
|
$ |
4,131 |
|
|
|
|
|
|
|
|
|
|
|
Weighted
average cost (annualized): |
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
|
2.73 |
% |
|
|
2.44 |
% |
|
|
2.00 |
% |
|
|
1.37 |
% |
|
|
0.82 |
% |
Fed funds purchased |
|
5.26 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
Federal Home Loan Bank borrowings |
|
2.78 |
% |
|
|
3.17 |
% |
|
|
3.11 |
% |
|
|
2.47 |
% |
|
|
1.48 |
% |
Subordinated debt and other borrowings |
|
5.65 |
% |
|
|
5.64 |
% |
|
|
5.72 |
% |
|
|
5.19 |
% |
|
|
5.69 |
% |
Total interest-bearing liabilities |
|
2.82 |
% |
|
|
2.71 |
% |
|
|
2.36 |
% |
|
|
1.79 |
% |
|
|
1.12 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest
income (taxable equivalent basis) |
$ |
15,971 |
|
|
$ |
15,476 |
|
|
$ |
15,486 |
|
|
$ |
16,824 |
|
|
$ |
17,352 |
|
Less:
taxable equivalent adjustment |
|
(435 |
) |
|
|
(611 |
) |
|
|
(574 |
) |
|
|
(563 |
) |
|
|
(527 |
) |
Net interest
income |
$ |
15,536 |
|
|
$ |
14,865 |
|
|
$ |
14,912 |
|
|
$ |
16,261 |
|
|
$ |
16,825 |
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread (tax equivalent basis, annualized) |
|
2.60 |
% |
|
|
2.49 |
% |
|
|
2.65 |
% |
|
|
3.08 |
% |
|
|
3.52 |
% |
|
|
|
|
|
|
|
|
|
|
Net interest
margin (tax equivalent basis, annualized) |
|
3.03 |
% |
|
|
2.94 |
% |
|
|
3.06 |
% |
|
|
3.41 |
% |
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
First Savings Financial (NASDAQ:FSFG)
Historical Stock Chart
From Mar 2024 to Apr 2024
First Savings Financial (NASDAQ:FSFG)
Historical Stock Chart
From Apr 2023 to Apr 2024