First Savings Financial Group, Inc. Reports Financial Results for the Second Fiscal Quarter Ended March 31, 2025
JEFFERSONVILLE, Ind., April 24, 2025 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $5.5 million, or $0.79 per diluted share, for the quarter ended March 31, 2025, compared to net income of $4.9 million, or $0.72 per diluted share, for the quarter ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $5.3 million (non-GAAP measure)(1) and net income per diluted share of $0.76 (non-GAAP measure)(1) for the quarter ended March 31, 2025 compared to $3.6 million, or $0.52 per diluted share for the quarter ended March 31, 2024.
Commenting on the Company's performance, Larry W. Myers, President and CEO, stated "We are pleased with the second fiscal quarter performance, including the continued improvement in the net interest margin, which has increased eighteen and twenty-one basis points for the three and six months ended, respectively. The SBA Lending segment posted its first profitable quarter since March 2024 and posted a solid level of loans originations and sales. Asset quality improved with nonperforming loans decreasing $3.8 million from the prior quarter and the ratio of nonperforming loans to total gross loans improving to 0.67%, a decrease of twenty basis points from the prior quarter. We are optimistic regarding the remainder of fiscal 2025 as we anticipate further expansion of the net interest margin, continued profitability from the SBA Lending segment, additional sales of home equity lines of credit ("HELOCS"), and stable and strong asset quality. We will continue our focus on customer deposit growth, select loan growth opportunities, preservation of asset quality, and prudent capital and liquidity management. We will also continue to evaluate options and strategies that we believe will maximize shareholder value."
(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 Three Months Ended March 31, 2025 and 2024
Net interest income increased $1.7 million, or 11.6%, to $16.0 million for the three months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended March 31, 2025 was 2.93% as compared to 2.66% for the same period in 2024. The increase in net interest income was due to an increase of $807,000 in interest income and a decrease of $846,000 in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.
The Company recognized a reversal of provision for credit losses for loans and securities of $357,000 and $1,000, respectively, and a provision for unfunded lending commitments of $123,000 for the three months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $713,000 and $23,000, respectively, and reversal of provision for unfunded lending commitments of $259,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to a decrease in qualitative reserves and $156,000 in net recoveries recognized during the period. The $156,000 in net recoveries during the three months ended March 31, 2025 included $215,000 in net recoveries related to unguaranteed portions of SBA loans. During the three months ended March 31, 2024, the Company recognized net charge-offs of $110,000, of which $15,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $4.2 million from $16.9 million at September 30, 2024 to $12.7 million at March 31, 2025, due primary to a $4.9 million decrease in loan balances guaranteed by the SBA.
Noninterest income decreased $150,000 for the three months ended March 31, 2025 as compared to the same period in 2024. The decrease was due primarily to a $539,000 decrease in other income, partially offset by a $154,000 increase in service charges on deposit accounts and a $127,000 increase in net gain on sales of SBA loans. The decrease in other income in 2025 was primarily due to $492,000 gain on the sale of mortgage servicing rights during the 2024 period with no corresponding amount for 2025.
Noninterest expense increased $1.9 million for the three months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $940,000 and $948,000, respectively. The increase in compensation and benefits was primarily due to an increase in bonus and incentive accruals in 2025. The increase in other operating expenses was primarily due a $656,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period compared to a reversal of $41,000 for the same period in 2025 and an adjustment to the valuation allowance related to the sale of residential mortgage servicing rights of $247,000 in 2024 with no corresponding amount in 2025.
The Company recognized income tax expense of $589,000 for the three months ended March 31, 2025 compared to $866,000 for the same period in 2024. The decrease is due primarily to greater utilization of investment tax credits in the 2025 period. The effective tax rate for 2025 was 9.7% compared to 14.9% for 2024. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.
Results of Operations for the Six Months Ended March 31, 2025 and 2024
The Company reported net income of $11.7 million, or $1.68 per diluted share, for the six months ended March 31, 2025 compared to net income of $5.8 million, or $0.85 per diluted share, for the six months ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $9.4 million (non-GAAP measure)(1) and net income per diluted share of $1.35 (non-GAAP measure)(1) for the six months ended March 31, 2025 compared to net income of $4.5 million and net income per diluted share of $0.66 for the six months ended March 31, 2024. The core banking segment reported net income of $11.4 million, or $1.64 per diluted share for the six months ended March 31, 2025 compared to net income of $8.6 million and net income per diluted share of $1.25 for the six months ended March 31, 2024. Excluding nonrecurring items, the core banking segment reported net income of $9.1 million (non-GAAP measure)(1) , or $1.31 per diluted share (non-GAAP measure)(1) for the six months ended March 31, 2025 compared to net income of $7.7 million and net income per diluted share of $1.12 for the six months ended March 31, 2024.
Net interest income increased $3.0 million, or 10.6%, to $31.5 million for the six months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the six months ended March 31, 2025 was 2.84% as compared to 2.68% for the same period in 2024. The increase in net interest income was due to a $4.6 million increase in interest income, partially offset by a $1.6 million increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.
The Company recognized a reversal of provision for credit losses for loans and securities of $848,000 and $7,000, respectively, and a provision for unfunded lending commitments of $169,000 for the six months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $1.2 million and $23,000, respectively, and reversal of provision for unfunded lending commitments of $317,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of HELOCS during the period and a decrease in qualitative reserves. The Company recognized net recoveries totaling $38,000 for the six months ended March 31, 2025, of which $164,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $119,000 in 2024, of which $64,000 was related to unguaranteed portions of SBA loans.
Noninterest income increased $3.2 million for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to a $2.5 million net gain on sale of HELOCs in 2025, net gains of $403,000 on the sale of equity securities in 2025 with no corresponding gains for 2024, a $248,000 increase in service charges on deposit accounts, and a $263,000 increase in ATM and interchange fees, slightly offset by a $508,000 decrease in other income due to a $495,000 gain recognized on the sale of mortgage servicing rights during 2024 with no corresponding amount for 2025.
Noninterest expense increased $824,000 for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to increases in other operating expenses and compensation and benefits of $962,000 and $453,000, respectively, partially offset by decreases in professional fees and occupancy and equipment of $454,000 and $380,000, respectively. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in 2024 compared to a reversal of $148,000 in 2025 and a $400,000 accrued contingent liability associated with employee benefits recognized in 2025 with no corresponding amount in 2024, partially offset by a decrease of $180,000 in 2025 to reverse previously accrued litigation expenses. The increase in compensation and benefits is primarily due to an increase in bonus and incentive accruals in 2025 compared to 2024. The decrease in professional fees and occupancy and equipment is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.
The Company recognized income tax expense of $1.4 million for the six months ended March 31, 2025 compared to $390,000 for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period, including the aforementioned net gain on sale of loans. The effective tax rate for 2025 was 10.9% compared to 6.3%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.
Comparison of Financial Condition at March 31, 2025 and September 30, 2024
Total assets decreased $74.1 million, from $2.45 billion at September 30, 2024 to $2.38 billion at March 31, 2025. Net loans held for investment decreased $83.7 million during the six months ended March 31, 2025 due primarily to the $87.2 million bulk sale of home equity lines of credit.
Total liabilities decreased $76.2 million due primarily to a decrease in total deposits of $91.7 million, partially offset by an increase in FHLB borrowings of $23.7 million. The decrease in total deposits was due to a decrease in brokered deposits of $112.4 million, due primarily to proceeds from the aforementioned bulk sale of home equity lines of credit and an increase in customer deposits of $20.7 million. As of March 31, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.8% of total deposits and 15.1% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.
Total stockholders' equity increased $2.1 million, from $177.1 million at September 30, 2024 to $179.2 million at March 31, 2025, due primarily to a $9.6 million increase in retained net income, partially offset by a $8.2 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the six months ended March 31, 2025, which resulted in a decrease in the fair value of securities available for sale. At March 31, 2025 and September 30, 2024, 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 in the Company's periodic 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 release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724
FIRST SAVINGS FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
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 $(540.SI)$ (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) $(500.SI)$ (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%
(END) Dow Jones Newswires
April 24, 2025 18:18 ET (22:18 GMT)
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