• First Savings Financial Group, Inc. Reports Financial Results For The Fiscal Year Ended September 30, 2023

    ソース: Nasdaq GlobeNewswire / 31 10 2023 08:20:15   America/Chicago

    JEFFERSONVILLE, Ind., Oct. 31, 2023 (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 $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 IncomeSeptember 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, DilutedSeptember 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 RatioSeptember 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 ShareSeptember 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 SheetsSeptember 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 IncomeSeptember 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 InformationSeptember 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 SegmentSeptember 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. VariableSeptember 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) DataSeptember 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 DataSeptember 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 SheetsSeptember 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%
              

     


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