First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2024

/EIN News/ -- JEFFERSONVILLE, Ind., Jan. 28, 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 $6.2 million, or $0.89 per diluted share, for the quarter ended December 31, 2024, compared to net income of $920,000, or $0.13 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the Company reported net income of $4.3 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.62 (non-GAAP measure)⁽¹⁾ for the quarter ended December 31, 2024 compared to $920,000, or $0.13 per diluted share for the quarter ended December 31, 2023. The core banking segment reported net income of $6.4 million, or $0.91 per diluted share, for the quarter ended December 31, 2024, compared to $4.0 million, or $0.59 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, the core banking segment reported net income of $4.5 million, or $0.64 per diluted share for the quarter ended December 31, 2024 (non-GAAP measure)⁽¹⁾ compared to $4.0 million, or $0.59 per diluted share for the quarter ended December 31, 2023.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the first fiscal quarter, which included a bulk sale of first lien home equity lines of credit and continued improvement in our net interest margin. The bulk sale is part of a strategic initiative to transition the first lien home equity line of credit business to an originate for sale model during fiscal 2025 in order to enhance noninterest income, moderate the loan to deposit ratio, decrease reliance on noncore funding, and generate capital. The surplus capital generated from the bulk sale and potential future flow sales may be used to retire high-cost subordinated debt and repurchase Company common shares. We are optimistic regarding the remainder of fiscal 2025 as we continue to focus on asset quality, select loan growth opportunities, and capital and liquidity management. We’ll 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 December 31, 2024 and 2023

Net interest income increased $1.3 million, or 9.6%, to $15.5 million for the three months ended December 31, 2024 as compared to the same period in 2023. The tax equivalent net interest margin for the three months ended December 31, 2024 was 2.75% as compared to 2.69% for the same period in 2023. The increase in net interest income was due to a $3.8 million increase in interest income, partially offset by a $2.4 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 $490,000 and $7,000, respectively, and a provision for unfunded lending commitments of $46,000 for the three months ended December 31, 2024, compared to a provision for credit losses for loans of $470,000 and reversal of provision for unfunded lending commitments of $58,000 for the same period in 2023. The reversal of provisions during the 2024 period was due primarily to the bulk sale of approximately $87.2 million of home equity lines of credit during the quarter ended December 31, 2024, which resulted in the reversals of $980,000 in allowance for credit losses for loans and $129,000 in allowance for unfunded lending commitments. The Company recognized net charge-offs totaling $119,000 for the three months ended December 31, 2024, of which $52,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $9,000 in 2023. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $374,000 from $16.9 million at September 30, 2024 to $16.6 million at December 31, 2024.

Noninterest income increased $3.3 million for the three months ended December 31, 2024 as compared to the same period in 2023. The increase was due primarily to a $2.5 million net gain on sale of loans due to the aforementioned bulk loan sale and $403,000 in net gains on equity securities during the three months ended December 31, 2024 with no corresponding gains for 2023.

Noninterest expense decreased $1.1 million for the three months ended December 31, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits, occupancy and equipment and professional fee expenses of $487,000, $405,000 and $385,000, respectively. These decreases were primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $848,000 for the three months ended December 30, 2024 as compared to income tax benefit of $476,000 for the same period in 2023. The increase is due primarily to higher taxable income in the 2024 period, due primarily to the aforementioned net gain on sale of loans. The effective tax rate for 2024 was 12.0%. 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 2024 and 2023 periods.

Comparison of Financial Condition at December 31, 2024 and September 30, 2024

Total assets decreased $61.6 million, from $2.45 billion at September 30, 2024 to $2.39 billion at December 31, 2024. Net loans held for investment decreased $79.3 million during the three months ended December 31, 2024 due primarily to the $87.2 million bulk sale of residential real estate home equity line of credit loans.

Total liabilities decreased $60.5 million due primarily to decreases in total deposits of $48.1 million, which included a decrease in brokered deposits of $72.1 million and a decrease in FHLB borrowings of $6.6 million. The decrease in brokered deposits and FHLB borrowings was due primary to repayments as a result of the aforementioned bulk loan sale. As of December 31, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.1% of total deposits and 13.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Total stockholders’ equity decreased $1.1 million, from $177.1 million at September 30, 2024 to $176.0 million at December 31, 2024, due primarily to a $6.6 million increase in accumulated other comprehensive loss, partially offset by an increase in retained net income of $5.2 million. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the three months ended December 31, 2024, which resulted in a decrease in the fair value of securities available for sale. At December 31, 2024 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 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)
	Three Months Ended
OPERATING DATA:	December 31,
(In thousands, except share and per share data)		2024				2023
Total interest income	$	32,449			$	28,655
Total interest expense		16,987				14,542
Net interest income		15,462				14,113
Provision (credit) for credit losses - loans		(490	)			470
Provision (credit) for unfunded lending commitments		46				(58	)
Credit for credit losses - securities		(7	)			-
Total provision (credit) for credit losses		(451	)			412
Net interest income after provision (credit) for credit losses		15,913				13,701
Total noninterest income		6,103				2,782
Total noninterest expense		14,943				16,039
Income before income taxes		7,073				444
Income tax expense (benefit)		848				(476	)
Net income	$	6,225			$	920
Net income per share, basic	$	0.91			$	0.13
Weighted average shares outstanding, basic		6,851,153				6,823,948
Net income per share, diluted	$	0.89			$	0.13
Weighted average shares outstanding, diluted		6,969,223				6,839,704
Performance ratios (annualized)
Return on average assets		1.02	%			0.16	%
Return on average equity		14.07	%			2.42	%
Return on average common stockholders' equity		14.07	%			2.42	%
Net interest margin (tax equivalent basis)		2.75	%			2.69	%
Efficiency ratio		69.29	%			94.93	%

									QTD
FINANCIAL CONDITION DATA:	December 31,				September 30,				Increase
(In thousands, except per share data)		2024				2024			(Decrease)
Total assets	$	2,388,735			$	2,450,368			$	(61,633	)
Cash and cash equivalents		76,224				52,142				24,082
Investment securities		242,634				249,719				(7,085	)
Loans held for sale		24,441				25,716				(1,275	)
Gross loans		1,905,199				1,985,146				(79,947	)
Allowance for credit losses		20,685				21,294				(609	)
Interest earning assets		2,234,258				2,277,512				(43,254	)
Goodwill		9,848				9,848				-
Core deposit intangibles		357				398				(41	)
Loan servicing rights		2,661				2,754				(93	)
Noninterest-bearing deposits		183,239				191,528				(8,289	)
Interest-bearing deposits (retail)		1,212,527				1,180,196				32,331
Interest-bearing deposits (brokered)		437,008				509,157				(72,149	)
Federal Home Loan Bank borrowings		295,000				301,640				(6,640	)
Subordinated debt and other borrowings		48,642				48,603				39
Total liabilities		2,212,708				2,273,253				(60,545	)
Accumulated other comprehensive loss		(17,789	)			(11,195	)			(6,594	)
Total stockholders' equity		176,027				177,115				(1,088	)
Book value per share	$	25.48			$	25.72				(0.24	)
Tangible book value per share (non-GAAP) (1)		24.00				24.23				(0.23	)
Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	4,444			$	5,036			$	(592	)
Nonaccrual loans		12,124				11,906				218
Total nonaccrual loans	$	16,568			$	16,942			$	(374	)
Accruing loans past due 90 days		-				-				-
Total non-performing loans		16,568				16,942				(374	)
Foreclosed real estate		444				444				-
Total non-performing assets	$	17,012			$	17,386			$	(374	)
Asset quality ratios:
Allowance for credit losses as a percent of total gross loans		1.09	%			1.07	%			0.01	%
Allowance for credit losses as a percent of nonperforming loans		124.85	%			125.69	%			(0.84	%)
Nonperforming loans as a percent of total gross loans		0.87	%			0.85	%			0.02	%
Nonperforming assets as a percent of total assets		0.71	%			0.71	%			0.00	%
(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
Net Income	December 31,
(In thousands)		2024				2023
Net income attributable to the Company (non-GAAP)	$	4,308			$	920
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		1,869				-
Plus: Reversal of provision for credit losses, loans, net of tax effect		735				-
Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect		97				-
Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect		302
Less: Adjustments to sick pay contingent liability, net of tax effect		(296	)
Less: Compensation expense associated with loan sale, net of tax effect		(790	)
Net income attributable to the Company (GAAP)	$	6,225			$	920
Net Income per Share, Diluted
Net income per share attributable to the Company, diluted (non-GAAP)	$	0.62			$	0.13
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		0.26				-
Plus: Reversal of provision for credit losses, loans, net of tax effect		0.11				-
Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect		0.01				-
Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect		0.04
Less: Adjustments to sick pay contingent liability, net of tax effect		(0.04	)
Less: Compensation expense associated with loan sale, net of tax effect		(0.11	)
Net income per share, diluted (GAAP)	$	0.89			$	0.13
Core Bank Segment Net Income
(In thousands)
Net income attributable to the Core Bank (non-GAAP)	$	4,452			$	4,048
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		1,869				-
Plus: Reversal of provision for credit losses, loans, net of tax effect		735				-
Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect		97				-
Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect		302				-
Less: Adjustments to sick pay contingent liability, net of tax effect		(296	)			-
Less: Compensation expense associated with loan sale, net of tax effect		(790	)			-
Net income attributable to the Core Bank (GAAP)	$	6,369			$	4,048
Core Bank Segment Net Income per Share, Diluted
Core Bank net income per share, diluted (non-GAAP)	$	0.64			$	0.59
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect		0.26				-
Plus: Reversal of provision for credit losses, loans, net of tax effect		0.11				-
Plus: Reversal of provision for credit losses, unfunded commitments, net of tax effect		0.01				-
Plus: Gain on sale of equity securities (Visa Class B-2 shares), net of tax effect		0.04				-
Less: Adjustments to sick pay contingent liability, net of tax effect		(0.04	)			-
Less: Compensation expense associated with loan sale, net of tax effect		(0.11	)			-
Core Bank net income per share, diluted (GAAP)	$	0.91			$	0.59

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):	Three Months Ended
Efficiency Ratio		2024
(In thousands)		2024				2023
Net interest income (GAAP)	$	15,462			$	14,113
Noninterest income (GAAP)		6,103				2,782
Noninterest expense (GAAP)		14,943				16,039
Efficiency ratio (GAAP)		69.29	%			94.93	%
Noninterest income (GAAP)	$	6,103			$	2,782
Less: Gain on sale of loans, home equity lines of credit		(2,492	)			-
Less: Gain on sale of equity securities (Visa Class B-2 shares)		(403	)			-
Noninterest income (Non-GAAP)		3,208				2,782
Noninterest expense (GAAP)	$	14,943			$	16,039
Less: Adjustments to sick pay contingent liability		(395	)			-
Less: Compensation expense associated with loan sale		(1,053	)			-
Noninterest expense (Non-GAAP)	$	13,495			$	16,039
Efficiency ratio (excluding nonrecurring items) (non-GAAP)		72.28	%			94.93	%
Tangible Book Value Per Share	December 31,				September 30,				Increase
(In thousands, except share and per share data)		2024				2024			(Decrease)
Stockholders' equity (GAAP)	$	176,027			$	177,115			$	(1,088	)
Less: goodwill and core deposit intangibles		(10,205	)			(10,246	)			41
Tangible stockholders' equity (non-GAAP)	$	165,822			$	166,869			$	(1,047	)
Outstanding common shares		6,909,173				6,887,106			$	22,067
Tangible book value per share (non-GAAP)	$	24.00			$	24.23			$	(0.23	)
Book value per share (GAAP)	$	25.48			$	25.72			$	(0.24	)

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)		2024				2024				2024				2024				2023
Total cash and cash equivalents	$	76,224			$	52,142			$	42,423			$	62,969			$	33,366
Total investment securities		242,634				249,719				238,785				240,142				246,801
Total loans held for sale		24,441				25,716				125,859				19,108				22,866
Total loans, net of allowance for credit losses		1,884,514				1,963,852				1,826,980				1,882,458				1,841,953
Loan servicing rights		2,661				2,754				2,860				3,028				3,711
Total assets		2,388,735				2,450,368				2,393,491				2,364,983				2,308,092
Retail deposits	$	1,395,766			$	1,371,724			$	1,312,997			$	1,239,271			$	1,180,951
Brokered deposits		437,008				509,157				399,151				548,175				502,895
Total deposits		1,832,774				1,880,881				1,712,148				1,787,446				1,683,846
Federal Home Loan Bank borrowings		295,000				301,640				425,000				315,000				356,699
Common stock and additional paid-in capital	$	28,382			$	27,725			$	27,592			$	27,475			$	27,397
Retained earnings - substantially restricted		178,526				173,337				170,688				167,648				163,753
Accumulated other comprehensive loss		(17,789	)			(11,195	)			(17,415	)			(17,144	)			(13,606	)
Unearned stock compensation		(973	)			(901	)			(999	)			(1,096	)			(1,194	)
Less treasury stock, at cost		(12,119	)			(11,851	)			(11,866	)			(11,827	)			(11,827	)
Total stockholders' equity		176,027				177,115				168,000				165,056				164,523
Outstanding common shares		6,909,173				6,887,106				6,883,656				6,883,160				6,883,160
	Three Months Ended
Summarized Consolidated Statements of Income	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except per share data)		2024				2024				2024				2024				2023
Total interest income	$	32,449			$	32,223			$	31,094			$	30,016			$	28,655
Total interest expense		16,987				17,146				16,560				15,678				14,542
Net interest income		15,462				15,077				14,534				14,338				14,113
Provision (credit) for credit losses - loans		(490	)			1,808				501				713				470
Provision (credit) for unfunded lending commitments		46				(262	)			158				(259	)			(58	)
Provision (credit) for credit losses - securities		(7	)			(86	)			84				23				-
Total provision (credit) for credit losses		(451	)			1,460				743				477				412
Net interest income after provision for credit losses		15,913				13,617				13,791				13,861				13,701
Total noninterest income		6,103				2,842				3,196				3,710				2,782
Total noninterest expense		14,943				12,642				12,431				11,778				16,039
Income before income taxes		7,073				3,817				4,556				5,793				444
Income tax expense (benefit)		848				145				483				866				(476	)
Net income		6,225				3,672				4,073				4,927				920
Net income per share, basic	$	0.91			$	0.54			$	0.60			$	0.72			$	0.13
Weighted average shares outstanding, basic		6,851,153				6,832,626				6,832,452				6,832,130				6,823,948
Net income per share, diluted	$	0.89			$	0.53			$	0.60			$	0.72			$	0.13
Weighted average shares outstanding, diluted		6,969,223				6,894,532				6,842,336				6,859,611				6,839,704

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Income Detail	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2024				2024				2024				2024				2023
Service charges on deposit accounts	$	567			$	552			$	538			$	387			$	473
ATM and interchange fees		665				642				593				585				449
Net unrealized gain on equity securities		78				28				419				6				38
Net gain on equity securities		403				-				-				-				-
Net gain on sales of loans, Small Business Administration		711				647				581				951				834
Net gain on sales of loans, home equity lines of credit		2,492				-				-				-				-
Mortgage banking income		78				6				49				53				89
Increase in cash surrender value of life insurance		361				363				353				333				329
Gain on life insurance		108				-				-				-				-
Commission income		210				294				220				220				222
Real estate lease income		121				122				154				115				115
Net gain (loss) on premises and equipment		45				(4	)			-				120				-
Other income		264				192				289				940				233
Total noninterest income	$	6,103			$	2,842			$	3,196			$	3,710			$	2,782
	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Consolidated Performance Ratios (Annualized)		2024				2024				2024				2024				2023
Return on average assets		1.02	%			0.61	%			0.69	%			0.92	%			0.16	%
Return on average equity		14.07	%			8.52	%			9.86	%			13.06	%			2.42	%
Return on average common stockholders' equity		14.07	%			8.52	%			9.86	%			13.06	%			2.42	%
Net interest margin (tax equivalent basis)		2.75	%			2.72	%			2.67	%			2.66	%			2.69	%
Efficiency ratio		69.29	%			70.55	%			70.11	%			65.26	%			94.93	%
	As of or for the Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Consolidated Asset Quality Ratios		2024				2024				2024				2024				2023
Nonperforming loans as a percentage of total loans		0.87	%			0.85	%			0.91	%			0.82	%			0.83	%
Nonperforming assets as a percentage of total assets		0.71	%			0.71	%			0.72	%			0.68	%			0.69	%
Allowance for credit losses as a percentage of total loans		1.09	%			1.07	%			1.07	%			1.02	%			1.01	%
Allowance for credit losses as a percentage of nonperforming loans		124.85	%			125.69	%			118.12	%			124.01	%			121.16	%
Net charge-offs to average outstanding loans		0.01	%			0.02	%			0.01	%			0.01	%			0.00	%

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2024				2024				2024				2024				2023
Core Banking Segment:
Net interest income	$	13,756			$	14,083			$	13,590			$	13,469			$	13,113
Provision (credit) for credit losses - loans		(745	)			1,339				320				909				(49	)
Provision (credit) for unfunded lending commitments		(75	)			78				64				(259	)			-
Provision (credit) for credit losses - securities		(7	)			(86	)			84				23				-
Net interest income after provision for credit losses		14,583				12,752				13,122				12,796				13,162
Noninterest income		5,253				2,042				2,474				2,537				1,679
Noninterest expense		12,574				10,400				10,192				10,093				10,252
Income before income taxes		7,262				4,394				5,404				5,240				4,589
Income tax expense		893				301				689				729				541
Net income	$	6,369			$	4,093			$	4,715			$	4,511			$	4,048
SBA Lending Segment (Q2):
Net interest income	$	1,706			$	994			$	944			$	869			$	1,003
Provision (credit) for credit losses - loans		255				469				181				(196	)			461
Provision (credit) for unfunded lending commitments		121				(340	)			94				-				-
Net interest income after provision for credit losses		1,330				865				669				1,065				542
Noninterest income		850				800				722				1,173				1,003
Noninterest expense		2,369				2,242				2,239				1,685				2,146
Income (loss) before income taxes		(189	)			(577	)			(848	)			553				(601	)
Income tax expense (benefit)		(45	)			(156	)			(206	)			137				(131	)
Net income (loss)	$	(144	)		$	(421	)		$	(642	)		$	416			$	(470	)
Mortgage Banking Segment: (2)
Net interest income (loss)	$	-			$	-			$	-			$	-			$	(3	)
Provision for credit losses - loans		-				-				-				-				-
Provision for unfunded lending commitments		-				-				-				-				-
Net interest income (loss) after provision for credit losses		-				-				-				-				(3	)
Noninterest income		-				-				-				-				100
Noninterest expense		-				-				-				-				3,641
Loss before income taxes		-				-				-				-				(3,544	)
Income tax benefit		-				-				-				-				(886	)
Net loss	$	-			$	-			$	-			$	-			$	(2,658	)
(2) National mortgage banking operations were ceased in the quarter ended December 31, 2023 and subsequent immaterial mortgage lending activity is reported within the Core Banking segment.

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except percentage data)		2024				2024				2024				2024				2023
Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking	$	0.93			$	0.60			$	0.69			$	0.66			$	0.59
Net income (loss) per share, basic - SBA Lending (Q2)		(0.02	)			(0.06	)			(0.09	)			0.06				(0.07	)
Net loss per share, basic - Mortgage Banking		0.00				0.00				0.00				0.00				(0.40	)
Total net income (loss) per share, basic	$	0.91			$	0.54			$	0.60			$	0.72			$	0.12
Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	0.91			$	0.59			$	0.69			$	0.66			$	0.59
Net income (loss) per share, diluted - SBA Lending (Q2)		(0.02	)			(0.06	)			(0.09	)			0.06				(0.07	)
Net loss per share, diluted - Mortgage Banking		0.00				0.00				0.00				0.00				(0.40	)
Total net income (loss) per share, diluted	$	0.89			$	0.53			$	0.60			$	0.72			$	0.12
Return on Average Assets by Segment (annualized) (3)
Core Banking		1.09	%			0.71	%			0.83	%			0.80	%			0.73	%
SBA Lending		(0.55	%)			(1.71	%)			(2.91	%)			1.81	%			(2.11	%)
Efficiency Ratio by Segment (annualized) (3)
Core Banking		66.15	%			64.50	%			63.45	%			63.06	%			69.31	%
SBA Lending		92.68	%			124.97	%			134.39	%			82.52	%			106.98	%
	Three Months Ended
Noninterest Expense Detail by Segment	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2024				2024				2024				2024				2023
Core Banking Segment:
Compensation	$	7,245			$	5,400			$	5,587			$	5,656			$	5,691
Occupancy		1,577				1,554				1,573				1,615				1,481
Advertising		338				399				253				205				189
Other		3,414				3,047				2,779				2,617				2,891
Total Noninterest Expense	$	12,574			$	10,400			$	10,192			$	10,093			$	10,252
SBA Lending Segment (Q2):
Compensation	$	1,931			$	1,854			$	1,893			$	1,933			$	1,826
Occupancy		59				55				51				58				91
Advertising		14				17				12				7				10
Other		365				316				283				(313	)			219
Total Noninterest Expense	$	2,369			$	2,242			$	2,239			$	1,685			$	2,146
Mortgage Banking Segment: (2)
Compensation	$	-			$	-			$	-			$	-			$	2,146
Occupancy		-				-				-				-				469
Advertising		-				-				-				-				119
Other		-				-				-				-				907
Total Noninterest Expense	$	-			$	-			$	-			$	-			$	3,641
(3) Ratios for Mortgage Banking Segment are not considered meaningful due to cessation of national mortgage banking operations in the quarter ended December 31, 2023.

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):
	Three Months Ended
SBA Lending (Q2) Data	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except percentage data)	2024				2024				2024				2024				2023
Final funded loans guaranteed portion sold, SBA	$	10,785			$	10,880			$	7,515			$	15,144			$	14,098
Gross gain on sales of loans, SBA	$	1,141			$	1,029			$	811			$	1,443			$	1,303
Weighted average gross gain on sales of loans, SBA	10.58		%		9.46		%		10.79		%		9.53		%		9.24		%
Net gain on sales of loans, SBA (4)	$	711			$	647			$	581			$	951			$	834
Weighted average net gain on sales of loans, SBA	6.59		%		5.95		%		7.73		%		6.28		%		5.92		%
(4) 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	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2024				2024				2024				2024				2023
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	21,102			$	16,841			$	26,100			$	24,587			$	20,350
Loans		2,010,082				1,988,997				1,943,716				1,914,609				1,857,654
Investment securities - taxable		101,960				99,834				101,350				102,699				103,728
Investment securities - nontaxable		160,929				158,917				157,991				157,960				159,907
FRB and FHLB stock		24,986				24,986				24,986				24,986				24,968
Total interest-earning assets	$	2,319,059			$	2,289,575			$	2,254,143			$	2,224,841			$	2,166,607
Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	210			$	209			$	324			$	261			$	249
Loans		29,617				29,450				28,155				27,133				26,155
Investment securities - taxable		914				910				918				923				942
Investment securities - nontaxable		1,715				1,685				1,665				1,662				1,687
FRB and FHLB stock		493				471				519				499				74
Total interest income (tax equivalent basis)	$	32,949			$	32,725			$	31,581			$	30,478			$	29,107
Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		3.98	%			4.96	%			4.97	%			4.25	%			4.89	%
Loans		5.89	%			5.92	%			5.79	%			5.67	%			5.63	%
Investment securities - taxable		3.59	%			3.65	%			3.62	%			3.59	%			3.63	%
Investment securities - nontaxable		4.26	%			4.24	%			4.22	%			4.21	%			4.22	%
FRB and FHLB stock		7.89	%			7.54	%			8.31	%			7.99	%			1.19	%
Total interest-earning assets		5.68	%			5.72	%			5.60	%			5.48	%			5.37	%
Interest-bearing liabilities
Interest-bearing deposits	$	1,671,156			$	1,563,258			$	1,572,871			$	1,549,012			$	1,389,384
Federal Home Loan Bank borrowings		315,583				378,956				351,227				333,275				440,786
Subordinated debt and other borrowings		48,616				48,576				48,537				48,497				48,458
Total interest-bearing liabilities	$	2,035,355			$	1,990,790			$	1,972,635			$	1,930,784			$	1,878,628
Interest expense:
Interest-bearing deposits	$	13,606			$	12,825			$	12,740			$	12,546			$	9,989
Federal Home Loan Bank borrowings		2,617				3,521				3,021				2,298				3,769
Subordinated debt and other borrowings		764				800				799				833				784
Total interest expense	$	16,987			$	17,146			$	16,560			$	15,677			$	14,542
Weighted average cost (annualized):
Interest-bearing deposits		3.26	%			3.28	%			3.24	%			3.24	%			2.88	%
Federal Home Loan Bank borrowings		3.32	%			3.72	%			3.44	%			2.76	%			3.42	%
Subordinated debt and other borrowings		6.29	%			6.59	%			6.58	%			6.87	%			6.47	%
Total interest-bearing liabilities		3.34	%			3.45	%			3.36	%			3.25	%			3.10	%
Net interest income (taxable equivalent basis)	$	15,962			$	15,579			$	15,021			$	14,801			$	14,565
Less: taxable equivalent adjustment		(500	)			(502	)			(487	)			(463	)			(452	)
Net interest income	$	15,462			$	15,077			$	14,534			$	14,338			$	14,113
Interest rate spread (tax equivalent basis, annualized)		2.34	%			2.27	%			2.24	%			2.23	%			2.27	%
Net interest margin (tax equivalent basis, annualized)		2.75	%			2.72	%			2.67	%			2.66	%			2.69	%