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First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2020

JEFFERSONVILLE, Ind., Feb. 01, 2021 (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 $9.9 million, or $4.16 per diluted share, for the quarter ended December 31, 2020 compared to net income of $3.4 million, or $1.44 per diluted share, for the quarter ended December 31, 2019, resulting in an increase of 189% on a per share basis.

Commenting on the Company’s performance, Larry W. Myers, President and CEO stated: “Because of the tireless dedication of our experienced staff who continually serve the needs of our customers and communities during these very challenging times, we continue to deliver meaningful value to our shareholders. We continue to experience strong earnings, asset and deposit growth; resiliency of asset quality; stability of the net interest margin; and substantial increases to stockholders’ equity. The core bank and ancillary business lines continue to perform exceptionally well. I have confidence that the Company is well-positioned to continue thriving during this challenging environment and I thank our staff for their continued efforts during such.”

On December 31, 2020, the Bank completed the acquisition of the minority interest in Q2 Business Capital, LLC (“Q2”), which specializes in the origination, sale and servicing of U.S. Small Business Administration (“SBA”) loans. Effective January 1, 2021, Q2 is a wholly-owned subsidiary of the Bank.

COVID-19 Pandemic Loan Information

We continue to assist customers experiencing COVID-19 pandemic related hardships by approving payment extensions or loan forbearance agreements, and by waiving or refunding certain fees. During the initial onset of the COVID-19 pandemic, we proactively contacted all commercial borrowers and offered uniform payment extensions or loan forbearance agreements, while requests from consumer borrowers were reviewed and approved on a case-by-case basis. Payment extensions or loan forbearance agreements were generally for periods of three months and included deferment of both principal and interest. Following the expiration of the initial payment extensions or loan forbearance agreements, we entertain requests for extended periods on a case-by-case basis, which will generally include deferment of only the principal portion of payments for a period of up to three months. The table below summarizes payment extensions or loan forbearance agreements that were in effect at January 22, 2021.

  Number of Loans
Outstanding Principal Balance (1)
SBA- Guaranteed Principal Balance
(Dollars in thousands)      
Residential real estate 4 $ 315   $ -
Commercial real estate 4   10,788   -
SBA commercial real estate 10   7,444   3,063
Multifamily 1   3,590   -
SBA commercial business 15   4,134   -
Consumer 1   30   -
       
   Total 35 $ 26,301 $ 3,063

(1) The outstanding principal balance includes amounts guaranteed by the SBA.

As a result of the COVID-19 pandemic, the leisure and hospitality industries carry a higher degree of credit risk. Based on our evaluation of the allowance for loan losses at December 31, 2020, management believes sufficient reserves are in place to cover estimated losses at that date. However, as the pandemic continues, additional losses could be recognized and additional provisions for loan losses may be required.

At December 31, 2020, the outstanding principal balance of loans secured by restaurant related collateral was $168.2 million, of which $74.9 million is fully guaranteed by the SBA (including $74.5 million of PPP loans) and $83.8 million is secured by commercial real estate where the collateral property is leased to national-brand, investment-grade tenants. Two of the SBA commercial loans included in the preceding table totaling $361,000 were secured by restaurant related collateral.

At December 31, 2020, the outstanding principal balances of loans secured by hotel real estate was $17.4 million, of which $3.7 million is fully guaranteed by the SBA (including $606,000 of PPP loans). Three of the commercial real estate and two of the SBA commercial real loans included in the preceding table totaling $9.9 million and $5.2 million, respectively, were secured by hotel real estate.

Under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was signed into law on March 27, 2020, the SBA will make six months of principal and interest payments for loans of existing SBA clients that were in “regular servicing status” (not delinquent) at March 27, 2020 and for loans of new SBA clients originated between March 27, 2020 and September 27, 2020. The CARES Act provided financial support for many of the SBA clients, which resulted in relatively few of such requiring payment extensions or loan forbearance agreements. Following the expiration of the SBA-provided loan payments under the CARES Act for most of the SBA clients, the twenty five SBA clients included in the preceding table, which operate in COVID-sensitive industries, were granted payment extensions or loan forbearance agreements. The Coronavirus Response and Relief Supplemental Appropriations Act (“CRRSAA”), which was signed into law on December 27, 2020, will provide additional SBA-provided loan payments to eligible SBA clients beginning in February 2021, including the aforementioned twenty five SBA clients following the expiration of their payment extensions or loan forbearance agreements.

The Company participated in the SBA’s Paycheck Protection Program (“PPP”), which was originally authorized by the CARES Act. At December 31, 2020, the outstanding principal balance of PPP loans was $178.5 million and net deferred loan fees related to PPP loans was approximately $2.7 million, which will be recognized over the life of the loans and as borrowers are granted forgiveness. The Company is also participating in the second round of the PPP, which was authorized by the CRRSAA and is currently in its early stages.

Results of Operations for the Three Months Ended December 31, 2020 and 2019

Net interest income increased $3.0 million, or 27.3%, to $13.7 million for the quarter ended December 31, 2020 as compared to the same quarter in 2019. The increase in net interest income was due to a $2.4 million increase in interest income and a $588,000 decrease in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $460.0 million, from $1.17 billion for 2019 to $1.63 billion for 2020, partially offset by a decrease in the weighted-average tax-equivalent yield, from 4.79% for 2019 to 4.03% for 2020. The decrease in the weighted-average tax-equivalent yield for 2020 is primarily due to an increase in the average balance of PPP loans of $179.3 million as well as decreasing market interest rates on loans. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 1.23% for 2019 to 0.70% for 2020, partially offset by an increase in the average balance of interest-bearing liabilities of $375.7 million, from $935.1 million for 2019 to $1.31 billion for 2020. The decrease in the average cost of interest-bearing liabilities for 2020 was due primarily to decreasing market interest rates on deposits and Federal Home Loan Bank (“FHLB”) borrowings, as well as the Company’s participation in the Federal Reserve Bank’s PPP Liquidity Facility (“PPPLF”), which carries a fixed interest rate of 0.35% and is secured by the Company’s PPP loans.

The Company recognized $668,000 in provision for loan losses for the quarter ended December 31, 2020, compared to $505,000 for the comparable quarter in 2019. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $1.2 million, from $13.6 million at September 30, 2020 to $12.4 million at December 31, 2020. The Company recognized net charge-offs of $570,000 for the quarter ended December 31, 2020, of which $506,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $15,000 for the same quarter in 2019. The increase in the provision for loan losses for 2020 was primarily due to increased charge-offs during the quarter as well as changes to qualitative factors within the allowance for loan losses calculation related to economic uncertainties surrounding COVID-19.

Noninterest income increased $28.0 million for the quarter ended December 31, 2020 as compared to the same quarter in 2019. The increase was primarily due to increases in mortgage banking income of $26.4 million and net gains on sales of SBA loans of $506,000. The increase in mortgage banking income was due to production from the secondary-market residential mortgage lending segment that commenced operations in April 2018. Additional details regarding the financial performance of the mortgage banking and SBA lending segments are included in the “Segmented Statements of Income Information” table at the end of this release.

Noninterest expense increased $20.1 million for the quarter ended December 31, 2020 as compared to the same quarter in 2019. The increase was primarily due to an increase in compensation and benefits of $16.0 million and increases in other operating expense and advertising expense of $1.5 million and $845,000, respectively. The increase in compensation and benefits expense is attributable to the addition of new employees primarily to support the growth of the Company’s mortgage banking and SBA lending activities, routine salary and benefits adjustments, and increased incentive compensation primarily as a result of the performance of the Company’s mortgage banking segment. The increases in other operating expense and advertising expense were primarily due to increased volume from the mortgage banking segment.

The Company recognized income tax expense of $4.5 million for the quarter ended December 31, 2020, as compared to income tax expense of $638,000 for the same quarter in 2019. The effective tax rate increased from 15.0% for the quarter ended December 31, 2019 to 30.5% for the quarter ended December 31, 2020 primarily due to increases in pre-tax income and nondeductible executive compensation.

Comparison of Financial Condition at December 31, 2020 and September 30, 2020

Total assets increased $108.3 million, from $1.76 billion at September 30, 2020 to $1.87 billion at December 31, 2020. Net loans increased $24.6 million during the quarter ended December 31, 2020, primarily due to continued growth in the single tenant net lease commercial real estate loan portfolio. Residential mortgage loans held for sale and SBA loans held for sale also increased by $66.8 million and $4.9 million, respectively, during the quarter ended December 31, 2020 due to increased production from the mortgage banking and SBA lending segments. Total liabilities increased $100.1 million primarily due to an increase of $73.2 million in total deposits and an increase of $29.2 million in FHLB borrowings.
                
Common stockholders’ equity increased $8.5 million, from $157.3 million at September 30, 2020 to $165.7 million at December 31, 2020, due primarily to increases in retained net income and net unrealized gains on available for sale securities included in accumulated other comprehensive income of $9.5 million and $680,000, respectively, partially offset by a decrease in additional paid in capital of $1.7 million. The decrease in additional paid in capital was due to the acquisition of the minority interest in Q2. At December 31, 2020 and September 30, 2020, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank has fifteen offices in the Indiana communities of Clarksville, Jeffersonville, Charlestown, Sellersburg, New Albany, Georgetown, Corydon, Lanesville, Elizabeth, English, Marengo, Salem, Odon and Montgomery. Access to First Savings Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank's website at www.fsbbank.net.

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, including the duration, extent and severity of the COVID-19 pandemic, including its effect on our customers, service providers and on the economy and financial markets in general, changes in market interest rates and 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  
(Unaudited)  
                     
                     
OPERATING DATA: Three Months Ended          
(In thousands, except share and per share data) December 31,          
    2020       2019                
Total interest income $ 16,026     $ 13,661                
Total interest expense   2,287       2,875                
                     
Net interest income   13,739       10,786                
Provision for loan losses   668       505                
                     
Net interest income after provision for loan losses   13,071       10,281                
                     
Total noninterest income   46,183       18,232                
Total noninterest expense   44,402       24,272                
                     
Income before income taxes   14,852       4,241                
Income tax expense   4,527       638                
                     
Net income   10,325       3,603                
                     
Less: Net income attributable to noncontrolling interests   402       164                
                     
Net income attributable to the Company $ 9,923     $ 3,439                
                     
Net income per share, basic $ 4.19     $ 1.47                
Weighted average shares outstanding, basic   2,367,061       2,340,619                
                     
Net income per share, diluted $ 4.16     $ 1.44                
Weighted average shares outstanding, diluted   2,384,702       2,382,754                
                     
Performance ratios (annualized):                    
Return on average assets   2.23 %     1.09 %              
Return on average common stockholders' equity   24.52 %     11.24 %              
Interest rate spread (tax equivalent basis)   3.33 %     3.56 %              
Net interest margin (tax equivalent basis)   3.46 %     3.80 %              
Efficiency ratio   74.10 %     83.64 %              
                     
                     
FINANCIAL CONDITION DATA: December 31,   September 30,   Increase          
(In thousands, except per share data)   2020       2020     (Decrease)          
Total assets $ 1,872,911     $ 1,764,625     $ 108,286            
Cash and cash equivalents   35,392       33,726       1,666            
Investment securities   205,661       204,067       1,594            
Loans held for sale   357,242       285,525       71,717            
Gross loans (1)   1,131,832       1,107,089       24,743            
Allowance for loan losses   17,124       17,026       98            
Interest earning assets   1,718,994       1,620,831       98,163            
Goodwill   9,848       9,848       -            
Core deposit intangibles   1,149       1,202       (53 )          
Loan servicing rights   35,232       25,451       9,781            
Noninterest-bearing deposits   272,241       242,673       29,568            
Interest-bearing deposits (2)   849,079       805,403       43,676            
Federal Home Loan Bank borrowings   340,092       310,858       29,234            
Federal Reserve PPPLF borrowings   172,772       174,834       (2,062 )          
Total liabilities   1,707,166       1,607,060       100,106            
Stockholders' equity, net of noncontrolling interests   165,745       157,272       8,473            
                     
Book value per share $ 69.79     $ 66.21     $ 3.61            
Tangible book value per share (3)   65.16       61.56       3.63            
                     
Non-performing assets:                    
Nonaccrual loans - SBA guaranteed $ 3,709     $ 3,709     $ -            
Nonaccrual loans - unguaranteed   8,698       9,906       (1,208 )          
Total nonaccrual loans $ 12,407     $ 13,615     $ (1,208 )          
Accruing loans past due 90 days   -       -       -            
Total non-performing loans   12,407       13,615       (1,208 )          
Foreclosed real estate   315       -       315            
Troubled debt restructurings classified as performing loans   1,950       3,069       (1,119 )          
Total non-performing assets $ 14,672     $ 16,684     $ (2,012 )          
Asset quality ratios:                    
Allowance for loan losses as a percent of total gross loans   1.51 %     1.54 %     (0.02 %)          
Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4)   1.80 %     1.84 %     (0.04 %)          
Allowance for loan losses as a percent of nonperforming loans   138.02 %     125.05 %     12.97 %          
Nonperforming loans as a percent of total gross loans   1.10 %     1.23 %     (0.13 %)          
Nonperforming assets as a percent of total assets   0.78 %     0.95 %     (0.16 %)          
                     
(1) Includes $178.5 million and $180.6 million of PPP loans at December 31, 2020 and September 30, 2020, respectively.          
                     
(2) Includes $147.5 million and $132.1 million of brokered and reciprocal certificates of deposit at December 31, 2020 and September 30, 2020, respectively.      
                     
(3) See reconciliation of GAAP and Non-GAAP financial measures for additional information relating to calculation of this item.          
                     
(4) Denominator excludes PPP loans, which are fully guaranteed by the SBA. This ratio is non-GAAP, but is believed by management to be meaningful because it provides a comparable ratio
after eliminating PPP loans.                    
                     
                     
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):              
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's        
performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to      
evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the      
Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.      
                     
                     
Tangible Book Value Per Share December 31,   September 30,   Increase          
(In thousands, except share and per share data)   2020       2020     (Decrease)          
Stockholders' equity, net of noncontrolling interests (GAAP) $ 165,745     $ 157,272     $ 8,473            
Less: goodwill and core deposit intangibles   (10,997 )     (11,050 )     53            
Tangible equity (non-GAAP) $ 154,748     $ 146,222     $ 109,789            
                     
Outstanding common shares   2,374,927       2,375,324       (397 )          
                     
Tangible book value per share (non-GAAP) $ 65.16     $ 61.56     $ 3.60            
                     
Book value per share (GAAP) $ 69.79     $ 66.21     $ 3.58            
                     
                     
                     
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): As of  
Summarized Consolidated Balance Sheets December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands, except per share data)   2020       2020       2020       2020       2019    
Total cash and cash equivalents $ 35,392     $ 33,726     $ 27,544     $ 22,603     $ 41,327    
Total investment securities   205,661       204,067       205,960       186,873       179,991    
Total loans held for sale   357,242       285,525       210,077       163,927       110,523    
Total loans, net of allowance for loan losses   1,114,708       1,090,063       1,081,381       877,276       851,700    
PPP loans   178,499       180,561       180,536       -       -    
Loan servicing rights   35,232       25,451       13,563       6,946       6,258    
Total assets   1,872,911       1,764,625       1,661,281       1,368,252       1,292,573    
                     
Total deposits $ 1,121,320     $ 1,048,076     $ 982,870     $ 937,306     $ 885,598    
Federal Home Loan Bank borrowings   340,092       310,858       298,622       270,000       239,566    
Federal Reserve PPPLF borrowings   172,772       174,834       174,834       -       -    
                     
Stockholders' equity, net of noncontrolling interests $ 165,745     $ 157,272     $ 142,362     $ 116,659     $ 123,810    
Noncontrolling interests in subsidiary   -       293       (214 )     (414 )     368    
Total equity   165,745       157,565       142,148       116,245       124,178    
                     
Outstanding common shares   2,374,927       2,375,324       2,375,324       2,375,324       2,357,369    
                     
                     
  Three Months Ended  
Summarized Consolidated Statements of Income December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands, except per share data)   2020       2020       2020       2020       2019    
Total interest income $ 16,026     $ 15,765     $ 14,719     $ 13,554     $ 13,661    
Total interest expense   2,287       2,337       2,543       2,783       2,875    
Net interest income   13,739       13,428       12,176       10,771       10,786    
Provision for loan losses   668       2,772       2,980       1,705       505    
Net interest income after provision for loan losses   13,071       10,656       9,196       9,066       10,281    
                     
Total noninterest income   46,183       57,024       46,962       11,133       18,232    
Total noninterest expense   44,402       44,452       35,009       22,075       24,272    
Income (loss) before income taxes   14,852       23,228       21,149       (1,876 )     4,241    
Income tax expense (benefit)   4,527       7,257       5,540       (774 )     638    
Net income (loss)   10,325       15,971       15,609       (1,102 )     3,603    
Less: net income (loss) attributable to noncontrolling interests   402       834       204       (475 )     164    
Net income (loss) attributable to the Company $ 9,923     $ 15,137     $ 15,405     $ (627 )   $ 3,439    
                     
                     
Net income (loss) per share, basic $ 4.19     $ 6.40     $ 6.51     $ (0.27 )   $ 1.47    
Weighted average shares outstanding, basic   2,367,061       2,365,217       2,365,217       2,355,750       2,340,619    
                     
Net income (loss) per share, diluted $ 4.16     $ 6.39     $ 6.51     $ (0.26 )   $ 1.44    
Weighted average shares outstanding, diluted   2,384,702       2,370,694       2,366,787       2,379,901       2,382,754    
                     
                     
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended  
  December 31,   September 30,   June 30,   March 31,   December 31,  
Consolidated Performance Ratios (Annualized)   2020       2020       2020       2020       2019    
Return on average assets   2.23 %     3.44 %     4.02 %     (0.19 %)     1.09 %  
Return on average equity   25.43 %     43.46 %     48.75 %     (3.51 %)     11.76 %  
Return on average common stockholders' equity   24.52 %     41.08 %     47.91 %     (2.00 %)     11.24 %  
Net interest margin (tax equivalent basis)   3.46 %     3.40 %     3.52 %     3.68 %     3.80 %  
Efficiency ratio   74.10 %     63.10 %     59.20 %     100.78 %     83.64 %  
                     
                     
  As of or for the Three Months Ended  
  December 31,   September 30,   June 30,   March 31,   December 31,  
Consolidated Asset Quality Ratios   2020       2020       2020       2020       2019    
Nonperforming loans as a percentage of total loans   1.10 %     1.23 %     1.26 %     1.55 %     0.64 %  
Nonperforming assets as a percentage of total assets   0.78 %     0.95 %     1.17 %     1.45 %     1.00 %  
Allowance for loan losses as a percentage of total loans   1.51 %     1.54 %     1.34 %     1.32 %     1.22 %  
Allowance for loan losses as a percentage of nonperforming loans   138.02 %     125.05 %     106.01 %     84.67 %     191.18 %  
Net charge-offs (recoveries) to average outstanding loans   0.04 %     0.03 %     0.00 %     0.06 %     0.00 %  
                     
                     
  Three Months Ended  
Segmented Statements of Income Information December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands, except per share data)   2020       2020       2020       2020       2019    
Core Banking Segment:                    
Net interest income $ 10,861     $ 10,512     $ 9,645     $ 9,035     $ 9,012    
Provision for loan losses   702       2,232       1,668       216       520    
Net interest income after provision for loan losses   10,159       8,280       7,977       8,819       8,492    
Noninterest income   1,552       1,779       1,324       1,411       1,391    
Noninterest expense   8,112       7,920       7,633       6,720       7,109    
Income before income taxes   3,599       2,139       1,668       3,510       2,774    
Income tax expense   570       482       276       591       330    
Net income attributable to the Company $ 3,029     $ 1,657     $ 1,392     $ 2,919     $ 2,444    
                     
SBA Lending Segment (Q2):                    
Net interest income $ 2,147     $ 1,959     $ 1,584     $ 1,151     $ 1,217    
Provision for loan losses   (34 )     540       1,312       1,489       (15 )  
Net interest income (loss) after provision for loan losses   2,181       1,419       272       (338 )     1,232    
Noninterest income   1,385       2,828       1,785       1,209       929    
Noninterest expense   2,746       2,545       1,642       1,841       1,825    
Income (loss) before income taxes   820       1,702       415       (970 )     336    
Income tax expense (benefit)   105       217       53       (124 )     43    
Net income (loss)   715       1,485       362       (846 )     293    
Less: net income (loss) attributable to noncontrolling interests   402       834       204       (475 )     164    
Net income (loss) attributable to the Company $ 313     $ 651     $ 158     $ (371 )   $ 129    
                     
Mortgage Banking Segment:                    
Net interest income $ 731     $ 957     $ 947     $ 585     $ 557    
Provision for loan losses   -       -       -       -       -    
Net interest income after provision for loan losses   731       957       947       585       557    
Noninterest income   43,246       52,417       43,853       8,513       15,912    
Noninterest expense   33,544       33,987       25,734       13,514       15,338    
Income (loss) before income taxes   10,433       19,387       19,066       (4,416 )     1,131    
Income tax expense (benefit)   3,852       6,558       5,211       (1,241 )     265    
Net income (loss) attributable to the Company $ 6,581     $ 12,829     $ 13,855     $ (3,175 )   $ 866    
                     
Net Income (Loss) Per Share by Segment                    
Net income per share, basic - Core Banking $ 1.28     $ 0.70     $ 0.59     $ 1.24     $ 1.04    
Net income (loss) per share, basic - SBA Lending (Q2)   0.13       0.28       0.07       (0.16 )     0.06    
Net income (loss) per share, basic - Mortgage Banking   2.78       5.42       5.85       (1.35 )     0.37    
Total net income (loss) per share, basic $ 4.19     $ 6.40     $ 6.51     $ (0.27 )   $ 1.47    
                     
Net Income (Loss) Per Diluted Share by Segment                    
Net income per share, diluted - Core Banking $ 1.27     $ 0.70     $ 0.59     $ 1.23     $ 1.03    
Net income (loss) per share, diluted - SBA Lending (Q2)   0.13       0.27       0.07       (0.16 )     0.05    
Net income (loss) per share, diluted - Mortgage Banking   2.76       5.42       5.85       (1.33 )     0.36    
Total net income (loss) per share, diluted $ 4.16     $ 6.39     $ 6.51     $ (0.26 )   $ 1.44    
                     
                     
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended  
Noninterest Expense Detail by Segment December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands)   2020       2020       2020       2020       2019    
Core Banking Segment:                    
Compensation $ 4,127     $ 4,250     $ 4,219     $ 3,535     $ 4,015    
Occupancy   1,392       1,512       1,239       1,133       1,200    
Advertising   177       225       195       151       147    
Other   2,416       1,933       1,980       1,901       1,747    
Total Noninterest Expense $ 8,112     $ 7,920     $ 7,633     $ 6,720     $ 7,109    
                     
SBA Lending Segment (Q2):                    
Compensation $ 2,280     $ 1,939     $ 1,314     $ 1,569     $ 1,469    
Occupancy   93       116       118       99       89    
Advertising   10       6       -       9       5    
Other   363       484       210       164       262    
Total Noninterest Expense $ 2,746     $ 2,545     $ 1,642     $ 1,841     $ 1,825    
                     
Mortgage Banking Segment:                    
Compensation $ 27,455     $ 27,092     $ 21,363     $ 9,803     $ 12,336    
Occupancy   1,100       1,207       855       757       633    
Advertising   2,124       2,011       1,666       1,617       1,314    
Other   2,865       3,677       1,850       1,337       1,055    
Total Noninterest Expense $ 33,544     $ 33,987     $ 25,734     $ 13,514     $ 15,338    
                     
                     
  Three Months Ended  
Mortgage Banking Noninterest Expense Fixed vs. Variable December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands)   2020       2020       2020       2020       2019    
Noninterest Expense - Fixed Expenses $ 13,296     $ 11,838     $ 8,394     $ 6,740     $ 5,671    
Noninterest Expense - Variable Expenses (5)   20,248       22,149       17,340       6,774       9,667    
Total Noninterest Expense $ 33,544     $ 33,987     $ 25,734     $ 13,514     $ 15,338    
                     
                     
  Three Months Ended  
SBA Lending (Q2) Data December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands, except percentage data)   2020       2020       2020       2020       2019    
Final funded loans guaranteed portion sold, SBA $ 14,116     $ 25,623     $ 16,605     $ 16,180     $ 10,830    
                     
Gross gain on sales of loans, SBA $ 1,698     $ 3,094     $ 1,771     $ 1,597     $ 1,066    
Weighted average gross gain on sales of loans, SBA   12.03 %     12.08 %     10.67 %     9.87 %     9.84 %  
                     
Net gain on sales of loans, SBA (6) $ 1,267     $ 2,366     $ 1,317     $ 1,229     $ 761    
Weighted average net gain on sales of loans, SBA   8.98 %     9.23 %     7.93 %     7.60 %     7.03 %  
                     
                     
  Three Months Ended  
Mortgage Banking Data December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands, except percentage data)   2020       2020       2020       2020       2019    
Mortgage originations for sale in the secondary market $ 1,430,628     $ 1,526,809     $ 1,003,518     $ 532,996     $ 542,568    
                     
Mortgage sales $ 1,349,044     $ 1,471,501     $ 954,568     $ 488,457     $ 529,344    
                     
Gross gain on sales of loans, mortgage banking $ 47,224     $ 53,633     $ 31,067     $ 14,912     $ 13,411    
Weighted average gross gain on sales of loans, mortgage banking   3.50 %     3.64 %     3.25 %     3.05 %     2.53 %  
                     
Mortgage banking income (7) $ 42,300     $ 52,035     $ 43,713     $ 8,411     $ 15,923    
                     
                     
(5) Variable expenses include incentive compensation and advertising expenses.                  
                     
(6) Net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets.      
                     
(7) Net of lender credits and other investor expenses, and inclusive of loan fees, gains on mortgage servicing rights, fair value adjustments and gains (losses) on derivative instruments.
                     
                     
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended  
Summarized Consolidated Average Balance Sheets December 31,   September 30,   June 30,   March 31,   December 31,  
(In thousands)   2020       2020       2020       2020       2019    
Interest-earning assets                    
Average balances:                    
Interest-bearing deposits with banks $ 34,412     $ 58,775     $ 25,985     $ 48,306     $ 46,296    
Loans, excluding PPP   1,205,278       1,172,547       1,076,376       970,083       935,211    
PPP loans   179,316       180,561       114,721       -       -    
Investment securities - taxable   42,462       44,026       43,569       46,216       50,132    
Investment securities - nontaxable   146,374       145,042       143,702       122,770       120,018    
FRB and FHLB stock   17,992       17,293       16,804       14,878       14,149    
Total interest-earning assets $ 1,625,834     $ 1,618,244     $ 1,421,157     $ 1,202,253     $ 1,165,806    
                     
Interest income (tax equivalent basis):                    
Interest-bearing deposits with banks $ 18     $ 22     $ 37     $ 153     $ 205    
Loans, excluding PPP   13,171       12,924       12,164       11,736       11,724    
PPP loans   1,085       1,019       671       -       -    
Investment securities - taxable   471       483       502       504       585    
Investment securities - nontaxable   1,508       1,507       1,514       1,300       1,278    
FRB and FHLB stock   108       144       168       151       154    
Total interest income (tax equivalent basis) $ 16,361     $ 16,099     $ 15,056     $ 13,844     $ 13,946    
                     
Weighted average yield (tax equivalent basis, annualized):                    
Interest-bearing deposits with banks   0.21 %     0.15 %     0.57 %     1.27 %     1.77 %  
Loans, excluding PPP   4.37 %     4.41 %     4.52 %     4.84 %     5.01 %  
PPP loans   2.42 %     2.26 %     2.34 %     0.00 %     0.00 %  
Investment securities - taxable   4.44 %     4.39 %     4.61 %     4.36 %     4.67 %  
Investment securities - nontaxable   4.12 %     4.16 %     4.21 %     4.24 %     4.26 %  
FRB and FHLB stock   2.40 %     3.33 %     4.00 %     4.06 %     4.35 %  
Total interest-earning assets   4.03 %     3.98 %     4.24 %     4.61 %     4.79 %  
                     
Interest-bearing liabilities                    
Average balances:                    
Interest-bearing deposits $ 811,016     $ 842,363     $ 770,402     $ 716,051     $ 707,518    
Fed funds purchased   -       -       1,978       143       -    
Federal Home Loan Bank borrowings   306,299       292,876       292,168       248,205       207,851    
Federal Reserve PPPLF borrowings   173,701       174,835       74,218       -       -    
Subordinated debt and other borrowings   19,803       19,786       19,769       19,752       19,735    
Total interest-bearing liabilities $ 1,310,819     $ 1,329,860     $ 1,158,535     $ 984,151     $ 935,104    
                     
Interest expense:                    
Interest-bearing deposits $ 936     $ 974     $ 1,311     $ 1,625     $ 1,749    
Fed funds purchased   -       -       2       -       -    
Federal Home Loan Bank borrowings   861       853       846       838       808    
Federal Reserve PPPLF borrowings   153       154       66       -       -    
Subordinated debt and other borrowings   337       356       318       320       318    
Total interest expense $ 2,287     $ 2,337     $ 2,543     $ 2,783     $ 2,875    
                     
Weighted average cost (annualized):                    
Interest-bearing deposits   0.46 %     0.46 %     0.68 %     0.91 %     0.99 %  
Fed funds purchased   0.00 %     0.00 %     0.40 %     0.00 %     0.00 %  
Federal Home Loan Bank borrowings   1.12 %     1.16 %     1.16 %     1.35 %     1.55 %  
Federal Reserve PPPLF borrowings   0.35 %     0.35 %     0.36 %     0.00 %     0.00 %  
Subordinated debt and other borrowings   6.81 %     7.20 %     6.43 %     6.48 %     6.45 %  
Total interest-bearing liabilities   0.70 %     0.70 %     0.88 %     1.13 %     1.23 %  
                     
Interest rate spread (tax equivalent basis, annualized)   3.33 %     3.28 %     3.36 %     3.48 %     3.56 %  
                     
Net interest margin (tax equivalent basis, annualized)   3.46 %     3.40 %     3.52 %     3.68 %     3.80 %  
                     

  


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