EX-99.1 2 tm2529771d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

FIRST SAVINGS FINANCIAL GROUP, INC. REPORTS FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025

 

Jeffersonville, Indiana — October 29, 2025. First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $23.2 million, or $3.32 per diluted share, for the year ended September 30, 2025, compared to net income of $13.6 million, or $1.98 per diluted share, for the year ended September 30, 2024. Excluding expenses related to the announced and pending merger with First Merchants Corporation, the Company reported net income of $23.8 million (non-GAAP measure)(1) and net income per diluted share of $3.41. (non-GAAP measure)(1) for the year ended September 30, 2025. Excluding all nonrecurring items, the Company reported net income of $22.7 million (non-GAAP measure)(1) and net income per diluted share of $3.25 (non-GAAP measure)(1) for the year ended September 30, 2025 compared to $11.7 million (non-GAAP measure)(1), or $1.70 per diluted share (non-GAAP measure)(1) for the year ended September 30, 2024.

 

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the strong performance for the 2025 fiscal year and continually improving trends.  Earnings per share, diluted, increased significantly from $1.98 for 2024 to $3.32 for 2025.  Annualized return on average assets, return on average equity, and net interest margin (tax equivalent basis) improved 39 basis points, 450 basis points, and 26 basis points, respectively, when compared to the prior fiscal year.  The efficiency, nonperforming loans, and nonperforming assets ratios decreased 723 basis points, 8 basis points, and 5 basis points, respectively, from September 2024.  Additionally, customer deposits increased $118.2 million since September 2024 and the SBA Lending segment posted its third consecutive profitable quarter, which included a solid level of loans originations and sales.  On September 25, 2025, we announced our agreement to merge with First Merchants Corporation.  We are proud of what we’ve accomplished throughout our history and the 17 years since our public listing on Nasdaq Capital Markets.  We will continue to execute and enhance shareholder value as we prepare for the planned 2026 integration and believe that the First Savings franchise will be a meaningful contributor to the future success of First Merchants.”

 

(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, 2025 and 2024

 

Net interest income increased $7.2 million, or 12.5%, to $65.3 million for the year ended September 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the year ended September 30, 2025 was 2.94% as compared to 2.68% for the same period in 2024. The increase in net interest income was due to a $5.5 million increase in interest income and a $1.7 million decrease 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 provision for unfunded lending commitments of $452,000 for the year ended September 30, 2025 and a reversal of provision for credit losses for loans and securities of $118,000 and $9,000, respectively, compared to provision for credit losses for loans and securities of $3.5 million and $21,000, respectively, and a reversal of provision for unfunded lending commitments of $421,000 for the same period in 2024. Provisions for the year ended September 30, 2025 were lower due to lower loan balances and a decrease in qualitative reserves. The Company recognized net charge-offs totaling $887,000 for the year ended September 30, 2025, of which $454,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $527,000 in 2024, of which $104,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $2.3 million from $16.9 million at September 30, 2024 to $14.6 million at September 30, 2025.

 

 

 

 

Noninterest income increased $6.3 million for the year ended September 30, 2025 as compared to the same period in 2024. The increase was due primarily to a $4.0 million net gain on sales of home equity lines of credit (“HELOC”) in 2025 with no corresponding amount for 2024, a $1.2 million increase in net gain on sale of SBA loans, and increases in ATM and interchange fees and service charges on deposits of $374,000 and $277,000, respectively.

 

Noninterest expense increased $4.1 million for the year ended September 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $2.9 million and $1.2 million, respectively. The increase in compensation and benefits is primarily due to routine salary increases and increases in incentive and bonus compensation in 2025 related to stronger Company performance. The increase in other operating expenses was due primarily to a $395,000 accrued contingent liability associated with employee benefits recognized in the 2025 period with no corresponding amount in 2024 and a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period with no corresponding amount for 2025.

 

The Company recognized income tax expense of $3.7 million for the year ended September 30, 2025 compared to $1.0 million for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period. The effective tax rate for 2025 was 13.8% compared to 7.0%. The effective tax rate is below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

 

Results of Operations for the Three Months Ended September 30, 2025 and 2024

 

The Company reported net income of $5.3 million, or $0.75 per diluted share, for the three months ended September 30, 2025, compared to net income of $3.7 million, or $0.53 per diluted share, for the three months ended September 30, 2024. Excluding expenses related to the announced and pending merger with First Merchants Corporation, the Company reported net income of $5.9 million (non-GAAP measure)(1) and net income per diluted share of $0.84. (non-GAAP measure)(1) for the three months ended September 30, 2025. Excluding all nonrecurring items, the Company reported net income of $5.8 million (non-GAAP measure)(1) and net income per diluted share of $0.82 (non-GAAP measure)(1) for the three months ended September 30, 2025 compared to $3.7 million (non-GAAP measure)(1), or $0.53 per diluted share (non-GAAP measure)(1) for the three months ended September 30, 2024.

 

Net interest income increased $2.1 million, or 13.6%, to $17.1 million for the three months ended September 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended September 30, 2025 was 3.07% as compared to 2.72% for the same period in 2024. The increase in net interest income was due to an increase of $67,000 in interest income and a decrease of $2.0 million 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 provision for credit losses for loans and unfunded lending commitments of $383,000 and $206,000, respectively, and a reversal of provision for credit losses on securities of $1,000 for the three months ended September 30, 2025, compared to a provision for credit losses for loans of $1.8 million and a reversal of provision for unfunded lending commitments and securities of $262,000 and $86,000, respectively, for the same period in 2024. The Company recognized net charge-offs totaling $616,000 during the three months ended September 30, 2025, of which $402,000 was related to unguaranteed portions of SBA loans. During the three months ended September 30, 2024, the Company recognized net charge-offs of $304,000, of which $120,000 was related to unguaranteed portions of SBA loans.

 

 

 

 

Noninterest income increased $1.8 million for the three months ended September 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in net gain on sales of HELOC and net gain on sales of SBA loans of $929,000 and $853,000, respectively. There was no gain on sales of HELOC in the 2024 period as sales of this product commenced in fiscal 2025.

 

Noninterest expense increased $2.0 million for the three months ended September 30, 2025 as compared to the same period in 2024. The increase in compensation and benefits is primarily due to routine salary increases and increases in incentive and bonus compensation in 2025 related to stronger Company performance.

 

The Company recognized income tax expense of $1.3 million for the three months ended September 30, 2025 compared to $145,000 for the same period in 2024. The increase is due primarily to higher taxable income in 2025 as compared to 2024. The effective tax rate for 2025 was 19.8% compared to 3.8% for 2024. The effective tax rate is below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

 

Comparison of Financial Condition at September 30, 2025 and September 30, 2024

 

Total assets decreased $50.8 million, from $2.45 billion at September 30, 2024 to $2.40 billion at September 30, 2025. Net loans held for investment decreased $77.0 million during the year ended September 30, 2025, due primarily to an $87.2 million sale of HELOC during the year ended September 30, 2025 that were previously classified as held for investment at September 30, 2024. Total loans held for sale increased $25.7 million due primarily to an increase in HELOC loans held for sale of $36.1 million, partially offset by a decrease in SBA loans held for sale of $10.9 million.

 

Total liabilities decreased $67.2 million due primarily to a decrease in total deposits and subordinated debt and other borrowings of $171.0 and $19.8 million, respectively, partially offset by an increase in FHLB borrowings of $133.4 million. The decrease in total deposits was due to a decrease in brokered deposits of $289.2 million, which was due primarily to proceeds from the aforementioned HELOC sale and greater utilization of FHLB borrowings, partially offset by an increase in customer deposits of $118.2 million. The decrease in subordinated debt and other borrowings is due to the redemption of $20.0 million of subordinated notes during the quarter ended June 30, 2025. As of September 30, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 41.9% of total deposits and 25.6% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

 

Total stockholders’ equity increased $16.4 million, from $177.1 million at September 30, 2024 to $193.5 million at September 30, 2025, due primarily to a $18.8 million increase in retained net income, partially offset by a $3.9 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the year ended September 30, 2025, which resulted in a decrease in the fair value of securities available for sale. At September 30, 2025 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

 

First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

 

 

 

 

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.

 

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed in the Company's periodic filings with the Securities and Exchange Commission.

 

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

 

Contact:

Tony A. Schoen, CPA

Chief Financial Officer

812-283-0724

 

 

 

 

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

 

   Three Months Ended   Years Ended 
OPERATING DATA:  September 30,   September 30, 
(In thousands, except share and per share data)  2025   2024   2025   2024 
Total interest income  $32,290   $32,223   $127,527   $121,988 
Total interest expense   15,160    17,146    62,219    63,926 
                     
Net interest income   17,130    15,077    65,308    58,062 
                     
Provision (credit) for credit losses - loans   383    1,808    (118)   3,492 
Provision (credit) for unfunded lending commitments   206    (262)   452    (421)
Provision (credit) for credit losses - securities   (1)   (86)   (9)   21 
                     
Total provision for credit losses   588    1,460    325    3,092 
                     
Net interest income after provision for credit losses   16,542    13,617    64,983    54,970 
                     
Total noninterest income   4,659    2,842    18,842    12,530 
Total noninterest expense   14,628    12,642    56,962    52,890 
                     
Income before income taxes   6,573    3,817    26,863    14,610 
Income tax expense   1,302    145    3,702    1,018 
                     
Net income  $5,271   $3,672   $23,161   $13,592 
                     
Net income per share, basic  $0.77   $0.54   $3.37   $1.99 
Weighted average shares outstanding, basic   6,881,658    6,833,376    6,871,242    6,830,466 
                     
Net income per share, diluted  $0.75   $0.53   $3.32   $1.98 
Weighted average shares outstanding, diluted   6,998,118    6,877,518    6,976,901    6,856,520 
                     
Performance ratios (annualized)                    
Return on average assets   0.88%   0.61%   0.96%   0.58%
Return on average equity   11.28%   8.52%   12.80%   8.31%
Return on average common stockholders' equity   11.28%   8.52%   12.80%   8.31%
Net interest margin (tax equivalent basis)   3.07%   2.72%   2.94%   2.68%
Efficiency ratio   67.13%   70.55%   67.69%   74.92%

 

 

 

 

FINANCIAL CONDITION DATA:  September 30,   June 30,   QTD
Increase		   September 30,   FYTD
Increase		 
(In thousands, except per share data)  2025   2025   (Decrease)   2024   (Decrease) 
Total assets  $2,399,532   $2,416,675   $(17,143)  $2,450,368   $(50,836)
Cash and cash equivalents   31,851    52,123    (20,272)   52,142    (20,291)
Investment securities   252,620    244,284    8,336    249,719    2,901 
Loans held for sale   51,454    19,178    32,276    25,716    25,738 
Gross loans   1,907,107    1,916,343    (9,236)   1,985,146    (78,039)
Allowance for credit losses   20,289    20,522    (233)   21,294    (1,005)
Interest earning assets   2,232,497    2,260,099    (27,602)   2,277,512    (45,015)
Goodwill   9,848    9,848    -    9,848    - 
Core deposit intangibles   234    275    (41)   398    (164)
Noninterest-bearing deposits   187,564    202,649    (15,085)   191,528    (3,964)
Interest-bearing deposits (customer)   1,302,378    1,253,525    48,853    1,180,196    122,182 
Interest-bearing deposits (brokered)   219,940    280,020    (60,080)   509,157    (289,217)
Federal Home Loan Bank borrowings   435,000    434,924    76    301,640    133,360 
Subordinated debt and other borrowings   28,762    28,722    40    48,603    (19,841)
Total liabilities   2,206,053    2,232,853    (26,800)   2,273,253    (67,200)
Accumulated other comprehensive loss   (15,087)   (20,061)   4,974    (11,195)   (3,892)
Total stockholders' equity   193,479    183,822    9,657    177,115    16,364 
                          
Book value per share  $27.73   $26.35    1.38   $25.72    2.01 
Tangible book value per share (non-GAAP) (1)   26.28    24.90    1.39    24.23    2.05 
                          
Non-performing assets:                         
Nonaccrual loans - SBA guaranteed  $2,699   $2,713   $(14)  $5,036   $(2,337)
Nonaccrual loans   11,926    12,502    (576)   11,906    20 
Total nonaccrual loans  $14,625   $15,215   $(590)  $16,942   $(2,317)
Accruing loans past due 90 days   -    -    -    -    - 
Total non-performing loans   14,625    15,215    (590)   16,942    (2,317)
Foreclosed real estate   1,093    1,113    (20)   444    649 
Total non-performing assets  $15,718   $16,328   $(610)  $17,386   $(1,668)
                          
Asset quality ratios:                         
Allowance for credit losses as a percent of total gross loans   1.06%   1.07%   (0.01%)   1.07%   (0.01%)
Allowance for credit losses as a percent of nonperforming loans   138.73%   134.88%   3.85%   125.69%   13.04%
Nonperforming loans as a percent of total gross loans   0.77%   0.79%   (0.03%)   0.85%   (0.08%)
Nonperforming assets as a percent of total assets   0.66%   0.68%   (0.02%)   0.71%   (0.05%)

 

 

(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   Fiscal Year Ended 
Net Income  September 30,   September 30, 
(In thousands)  2025   2024   2025   2024 
Net income attributable to the Company (non-GAAP)  $5,771   $3,660   $22,680   $11,674 
Plus: Insured recovery of legal fees previously recognized, net of tax   157    -    157    - 
Plus: Gain on life insurance   -    -    255    - 
Plus: Gain on lease termination, net of tax effect   -    -    378    - 
Plus: Gain on sale of equity securities, net of tax effect   -    -    313    - 
Plus: Gain (loss) on premises and equipment, net of tax effect   -    3    35    87 
Plus: Record Visa Class C shares, net of tax effect   -    15    -    342 
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect   -    -    -    492 
Plus: Reversal of contingent liability, net of tax effect   -    -    -    212 
Plus: Adjustment to MSR valuation allowance, net of tax effect   -    -    -    583 
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect   -    -    -    117 
Plus: Distribution from equity investment, net of tax effect   -    -    -    85 
Less: Merger related professional fees, net of tax effect   (657)   -    (657)   - 
Net income attributable to the Company (GAAP)  $5,271   $3,672   $23,161   $13,592 
                     
Net Income per Share, Diluted                    
                     
Net income per share attributable to the Company, diluted (non-GAAP)  $0.82   $0.53   $3.25   $1.70 
Plus: Insured recovery of legal fees previously recognized, net of tax   0.02    -    0.02    - 
Plus: Gain on life insurance   -    -    0.04    - 
Plus: Gain on lease termination, net of tax effect   -    -    0.05    - 
Plus: Gain on sale of equity securities, net of tax effect   -    -    0.04    - 
Plus: Gain (loss) on premises and equipment, net of tax effect   -    -    0.01    0.01 
Plus: Record Visa Class C shares, net of tax effect   -    -    -    0.05 
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect   -    -    -    0.07 
Plus: Reversal of contingent liability, net of tax effect   -    -    -    0.03 
Plus: Adjustment to MSR valuation allowance, net of tax effect   -    -    -    0.09 
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect   -    -    -    0.02 
Plus: Distribution from equity investment, net of tax effect   -    -    -    0.01 
Less: Merger related professional fees, net of tax effect   (0.09)   -    (0.09)   - 
Net income per share, diluted (GAAP)  $0.75   $0.53   $3.32   $1.98 

 

 

 

 

 

 

Core Bank Segment Net Income                
(In thousands)                
Net income attributable to the Core Bank (non-GAAP)  $5,689   $4,081   $21,920   $15,941 
Plus: Insured recovery of legal fees previously recognized, net of tax   157    -    157    - 
Plus: Gain on life insurance   -    -    255    - 
Plus: Gain on lease termination, net of tax effect   -    -    378    - 
Plus: Gain on sale of equity securities, net of tax effect   -    -    313    - 
Plus: Gain (loss) on premises and equipment, net of tax effect   -    3    35    87 
Plus: Record Visa Class C shares, net of tax effect   -    15    -    342 
Plus: Reversal of contingent liability, net of tax effect   -    -    -    212 
Plus: Adjustment to MSR valuation allowance, net of tax effect   -    -    -    583 
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect   -    -    -    117 
Plus: Distribution from equity investment, net of tax effect   -    -    -    85 
Less: Merger related professional fees, net of tax effect   (657)   -    (657)   - 
Net income attributable to the Core Bank (GAAP)  $5,189   $4,093   $22,401   $17,367 
                     
Core Bank Segment Net Income per Share, Diluted                    
                     
Core Bank net income per share, diluted (non-GAAP)  $0.82   $0.60   $3.14   $2.33 
Plus: Insured recovery of legal fees previously recognized, net of tax   0.02    -    0.02    - 
Plus: Gain on life insurance   -    -    0.04    - 
Plus: Gain on lease termination, net of tax effect   -    -    0.05    - 
Plus: Gain on sale of equity securities, net of tax effect   -    -    0.04    - 
Plus: Gain (loss) on premises and equipment, net of tax effect   -    -    0.01    0.01 
Plus: Record Visa Class C shares, net of tax effect   -    -    -    0.05 
Plus: Reversal of contingent liability, net of tax effect   -    -    -    0.03 
Plus: Adjustment to MSR valuation allowance, net of tax effect   -    -    -    0.09 
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect   -    -    -    0.02 
Plus: Distribution from equity investment, net of tax effect   -    -    -    0.01 
Less: Merger related professional fees, net of tax effect   (0.09)   -    (0.09)   - 
Core Bank net income per share, diluted (GAAP)  $0.75   $0.60   $3.21   $2.54 

 

 

 

 

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):  Three Months Ended   Fiscal Year Ended 
Efficiency Ratio  September 30,   September 30, 
(In thousands)  2025   2024   2025   2024 
Net interest income (GAAP)  $17,130   $15,077   $65,308   $58,062 
                     
Noninterest income (GAAP)   4,659    2,842    18,842    12,530 
                     
Noninterest expense (GAAP)   14,628    12,642    56,962    52,890 
                     
Efficiency ratio (GAAP)   67.13%   70.55%   67.69%   74.92%
                     
Noninterest income (GAAP)  $4,659   $2,842   $18,842   $12,530 
Less: Gain on life insurance   -    -    (255)   - 
Less: Gain on lease termination   -    -    (487)   - 
Less: Gain on sale of equity securities   -    -    (403)   - 
Less: (Gain) loss on premises and equipment   -    4    (45)   (116)
Less: Record Visa Class C shares   -    (20)   -    (456)
Less: Adjustment to MSR valuation allowance   -    -    -    (777)
Less: Distribution from equity investment   -    -    -    (113)
Noninterest income (Non-GAAP)   4,659    2,826    17,652    11,068 
                     
Noninterest expense (GAAP)  $14,628   $12,642   $56,962   $52,890 
Plus: Insured recovery of legal fees previously recognized   203    -    203    - 
Plus: Decrease in loss contingency for SBA-guaranteed loans   -    -    -    656 
Plus: Reversal of contingent liability   -    -    -    283 
Plus: Adjustment to previous data processing contract termination accrual   -    -    -    156 
Less: Merger related professional fees   (707)   -    (707)   - 
Noninterest expense (Non-GAAP)  $14,124   $12,642   $56,458   $53,985 
                     
Efficiency ratio (excluding nonrecurring items) (non-GAAP)   64.82%   70.61%   68.05%   78.09%

 

           QTD       FYTD 
Tangible Book Value Per Share  September 30,   June 30,   Increase   September 30,   Increase 
(In thousands, except share and per share data)  2025   2025   (Decrease)   2024   (Decrease) 
Stockholders' equity (GAAP)  $193,479   $183,822   $9,657   $177,115   $16,364 
Less:goodwill and core deposit intangibles   (10,082)   (10,123)   41    (10,246)   164 
Tangible stockholders' equity (non-GAAP)  $183,397   $173,699   $9,698   $166,869   $16,528 
                          
Outstanding common shares   6,977,308    6,976,558   $750    6,887,106   $90,202 
                          
Tangible book value per share (non-GAAP)  $26.28   $24.90   $1.39   $24.23   $2.05 
                          
Book value per share (GAAP)  $27.73   $26.35   $1.38   $25.72   $2.01 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):  As of 
Summarized Consolidated Balance Sheets  September 30,   June 30,   March 31,   December 31,   September 30, 
(In thousands, except per share data)  2025   2025   2025   2024   2024 
Total cash and cash equivalents  $31,851   $52,123   $28,683   $76,224   $52,142 
Total investment securities   252,620    244,284    244,084    242,634    249,719 
Total loans held for sale   51,454    19,178    61,239    24,441    25,716 
Total loans, net of allowance for credit losses   1,886,818    1,895,821    1,880,176    1,884,514    1,963,852 
Loan servicing rights   3,085    2,869    2,744    2,661    2,754 
Total assets   2,399,532    2,416,675    2,376,230    2,388,735    2,450,368 
                          
Customer deposits  $1,489,942   $1,456,174   $1,392,411   $1,395,766   $1,371,724 
Brokered deposits   219,940    280,020    396,770    437,008    509,157 
Total deposits   1,709,882    1,736,194    1,789,181    1,832,774    1,880,881 
Federal Home Loan Bank borrowings   435,000    434,924    325,310    295,000    301,640 
                          
Common stock and additional paid-in capital  $30,452   $30,090   $28,650   $28,382   $27,725 
Retained earnings - substantially restricted   192,114    187,969    182,918    178,526    173,337 
Accumulated other comprehensive loss   (15,087)   (20,061)   (19,385)   (17,789)   (11,195)
Unearned stock compensation   (1,829)   (2,005)   (862)   (973)   (901)
Less treasury stock, at cost   (12,171)   (12,171)   (12,132)   (12,119)   (11,851)
Total stockholders' equity   193,479    183,822    179,189    176,027    177,115 
                          
Outstanding common shares   6,977,308    6,976,558    6,919,136    6,909,173    6,887,106 
                          
    Three Months Ended  
Summarized Consolidated Statements of Income   September 30,    June 30,    March 31,    December 31,    September 30, 
(In thousands, except per share data)   2025    2025    2025    2024    2024 
Total interest income  $32,290   $31,965   $30,823   $32,449   $32,223 
Total interest expense   15,160    15,240    14,832    16,987    17,146 
Net interest income   17,130    16,725    15,991    15,462    15,077 
Provision (credit) for credit losses - loans   383    347    (357)   (491)   1,808 
Provision (credit) for unfunded lending commitments   206    77    123    46    (262)
Provision (credit) for credit losses - securities   (1)   (1)   (1)   (6)   (86)
Total provision (credit) for credit losses   588    423    (235)   (451)   1,460 
                          
Net interest income after provision (credit) for credit losses   16,542    16,302    16,226    15,913    13,617 
                          
Total noninterest income   4,659    4,520    3,560    6,103    2,842 
Total noninterest expense   14,628    13,693    13,698    14,943    12,642 
Income before income taxes   6,573    7,129    6,088    7,073    3,817 
Income tax expense   1,302    963    589    848    145 
Net income  $5,271   $6,166   $5,499   $6,225   $3,672 
                          
Net income per share, basic  $0.77   $0.90   $0.80   $0.91   $0.54 
Weighted average shares outstanding, basic   6,881,658    6,881,077    6,875,826    6,851,153    6,832,626 
                          
Net income per share, diluted  $0.75   $0.88   $0.79   $0.89   $0.53 
Weighted average shares outstanding, diluted   6,998,118    6,977,674    6,960,020    6,969,223    6,894,532 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):  Three Months Ended 
Noninterest Income Detail  September 30,   June 30,   March 31,   December 31,   September 30, 
(In thousands)  2025   2025   2025   2024   2024 
Service charges on deposit accounts  $582   $537   $541   $567   $552 
ATM and interchange fees   698    648    632    665    642 
Net unrealized gain (loss) on equity securities   (50)   15    47    78    28 
Net gain on equity securities   -    -    -    403    - 
Net gain on sales of loans, Small Business Administration   1,500    932    1,078    711    647 
Net gain on sales of loans, home equity lines of credit   929    617    -    2,492    - 
Mortgage banking income   79    96    104    78    6 
Increase in cash surrender value of life insurance   404    358    380    361    363 
Gain on life insurance   -    147    -    108    - 
Commission income   197    184    255    210    294 
Real estate lease income   16    132    122    121    122 
Net gain (loss) on premises and equipment   -    -    -    45    (4)
Other income   304    854    401    264    192 
Total noninterest income  $4,659   $4,520   $3,560   $6,103   $2,842 
                          
    Three Months Ended  
    September 30,    June 30,    March 31,    December 31,    September 30, 
Consolidated Performance Ratios (Annualized)   2025    2025    2025    2024    2024 
Return on average assets   0.88%   1.02%   0.93%   1.02%   0.61%
Return on average equity   11.28%   13.66%   12.24%   14.07%   8.52%
Return on average common stockholders' equity   11.28%   13.66%   12.34%   14.07%   8.52%
Net interest margin (tax equivalent basis)   3.07%   2.99%   2.93%   2.75%   2.72%
Efficiency ratio   67.13%   64.45%   70.06%   69.29%   70.55%
                          
    As of or for the Three Months Ended  
    September 30,    June 30,    March 31,    December 31,    September 30, 
Consolidated Asset Quality Ratios   2025    2025    2025    2024    2024 
Nonperforming loans as a percentage of total loans   0.77%   0.79%   0.67%   0.87%   0.85%
Nonperforming assets as a percentage of total assets   0.66%   0.68%   0.55%   0.71%   0.71%
Allowance for credit losses as a percentage of total loans   1.06%   1.07%   1.08%   1.09%   1.07%
Allowance for credit losses as a percentage of nonperforming loans   138.73%   134.88%   161.04%   124.85%   125.69%
Net charge-offs to average outstanding loans   0.03%   0.02%   -0.01%   0.01%   0.02%

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):  Three Months Ended 
Segmented Statements of Income Information  September 30,   June 30,   March 31,   December 31,   September 30, 
(In thousands)  2025   2025   2025   2024   2024 
Core Banking Segment:                         
Net interest income  $15,402   $15,086   $14,259   $13,756   $14,083 
Provision (credit) for credit losses - loans   (481)   420    (540)   (745)   1,339 
Provision (credit) for unfunded lending commitments   (51)   32    35    (75)   78 
Credit for credit losses - securities   (1)   (1)   (1)   (7)   (86)
Total provision (credit) for credit losses   (533)   451    (506)   (827)   1,331 
Net interest income after provision (credit) for credit losses   15,935    14,635    14,765    14,583    12,752 
Noninterest income   2,941    3,340    2,242    5,253    2,042 
Noninterest expense   12,240    11,366    11,486    12,574    10,400 
Income before income taxes   6,636    6,609    5,521    7,262    4,394 
Income tax expense   1,447    835    452    893    301 
Net income  $5,189   $5,774   $5,069   $6,369   $4,093 
                          
SBA Lending Segment (Q2):                         
Net interest income  $1,728   $1,639   $1,732   $1,706   $994 
Provision (credit) for credit losses - loans   864    (73)   183    255    469 
Provision (credit) for unfunded lending commitments   257    45    88    121    (340)
Total provision (credit) for credit losses   1,121    (28)   271    376    129 
Net interest income after provision (credit) for credit losses   607    1,667    1,461    1,330    865 
Noninterest income   1,718    1,180    1,318    850    800 
Noninterest expense   2,388    2,327    2,212    2,369    2,242 
Income (loss) before income taxes   (63)   520    567    (189)   (577)
Income tax expense (benefit)   (145)   128    137    (45)   (156)
Net income (loss)  $82   $392   $430   $(144)  $(421)

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):  Three Months Ended 
Segmented Statements of Income Information  September 30,   June 30,   March 31,   December 31,   September 30, 
(In thousands, except percentage data)  2025   2025   2025   2024   2024 
Net Income (Loss) Per Share by Segment                         
Net income per share, basic - Core Banking  $0.75   $0.84   $0.74   $0.93   $0.60 
Net income (loss) per share, basic - SBA Lending (Q2)   0.01    0.06    0.06    (0.02)   (0.06)
Total net income per share, basic  $0.76   $0.90   $0.80   $0.91   $0.54 
                          
Net Income (Loss) Per Diluted Share by Segment                         
Net income per share, diluted - Core Banking  $0.75   $0.82   $0.73   $0.91   $0.60 
Net income (loss) per share, diluted - SBA Lending (Q2)   0.01    0.06    0.06    (0.02)   (0.06)
Total net income per share, diluted  $0.76   $0.88   $0.79   $0.89   $0.53 
                          
Return on Average Assets by Segment (annualized)                         
Core Banking   0.90%   1.01%   0.90%   1.09%   0.71%
SBA Lending   0.30%   1.36%   1.58%   (0.55%)   (1.71%)
                          
Efficiency Ratio by Segment (annualized)                         
Core Banking   66.73%   61.68%   69.61%   66.15%   64.50%
SBA Lending   69.30%   82.55%   72.52%   92.68%   124.97%
     
   Three Months Ended 
Noninterest Expense Detail by Segment  September 30,   June 30,   March 31,   December 31,   September 30, 
(In thousands)  2025   2025   2025   2024   2024 
Core Banking Segment:                         
Compensation  $6,986   $6,470   $6,637   $7,245   $5,400 
Occupancy   1,476    1,533    1,648    1,577    1,554 
Advertising   479    437    429    338    399 
Other   3,299    2,926    2,772    3,414    3,047 
Total Noninterest Expense  $12,240   $11,366   $11,486   $12,574   $10,400 
                          
SBA Lending Segment (Q2):                         
Compensation  $1,853   $1,914   $1,892   $1,931   $1,854 
Occupancy   53    92    50    59    55 
Advertising   16    17    10    14    17 
Other   466    304    260    365    316 
Total Noninterest Expense  $2,388   $2,327   $2,212   $2,369   $2,242 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):  Three Months Ended 
SBA Lending (Q2) Data  September 30,   June 30,   March 31,   December 31,   September 30, 
(In thousands, except percentage data)  2025   2025   2025   2024   2024 
Final funded loans guaranteed portion sold, SBA  $25,948   $18,019   $15,716   $10,785   $10,880 
                          
Gross gain on sales of loans, SBA  $2,443   $1,548   $1,508   $1,141   $1,029 
Weighted average gross gain on sales of loans, SBA   9.41%   8.59%   9.60%   10.58%   9.46%
                          
Net gain on sales of loans, SBA (2)  $1,500   $932   $1,078   $711   $647 
Weighted average net gain on sales of loans, SBA   5.78%   5.17%   6.86%   6.59%   5.95%

 

 

(2) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):  Three Months Ended 
Summarized Consolidated Average Balance Sheets  September 30,   June 30,   March 31,   December 31,   September 30, 
(In thousands)  2025   2025   2025   2024   2024 
Interest-earning assets                         
Average balances:                         
Interest-bearing deposits with banks  $14,385   $15,889   $11,851   $21,102   $16,841 
Loans   1,978,946    1,992,567    1,946,338    2,010,082    1,988,997 
Investment securities - taxable   107,698    104,169    102,744    101,960    99,834 
Investment securities - nontaxable   162,070    162,017    161,579    160,929    158,917 
FRB and FHLB stock   25,299    24,993    24,986    24,986    24,986 
Total interest-earning assets  $2,288,398   $2,299,635   $2,247,498   $2,319,059   $2,289,575 
                          
Interest income (tax equivalent basis):                         
Interest-bearing deposits with banks  $175   $145   $168   $210   $209 
Loans   29,263    29,214    27,998    29,617    29,450 
Investment securities - taxable   1,000    947    921    914    910 
Investment securities - nontaxable   1,732    1,733    1,719    1,715    1,685 
FRB and FHLB stock   574    416    511    493    471 
Total interest income (tax equivalent basis)  $32,744   $32,455   $31,317   $32,949   $32,725 
                          
Weighted average yield (tax equivalent basis, annualized):                         
Interest-bearing deposits with banks   4.87%   3.65%   5.67%   3.98%   4.96%
Loans   5.91%   5.86%   5.75%   5.89%   5.92%
Investment securities - taxable   3.71%   3.64%   3.59%   3.59%   3.65%
Investment securities - nontaxable   4.27%   4.28%   4.26%   4.26%   4.24%
FRB and FHLB stock   9.08%   6.66%   8.18%   7.89%   7.54%
Total interest-earning assets   5.72%   5.65%   5.57%   5.68%   5.72%
                          
Interest-bearing liabilities                         
Interest-bearing deposits  $1,524,714   $1,537,248   $1,653,058   $1,671,156   $1,563,258 
Federal Home Loan Bank borrowings   446,039    437,371    266,975    315,583    378,956 
Subordinated debt and other borrowings   28,735    35,070    48,656    48,616    48,576 
Total interest-bearing liabilities  $1,999,488   $2,009,689   $1,968,689   $2,035,355   $1,990,790 
                          
Interest expense:                         
Interest-bearing deposits  $10,504   $10,601   $12,069   $13,606   $12,825 
Federal Home Loan Bank borrowings   4,291    4,149    2,001    2,617    3,521 
Subordinated debt and other borrowings   365    489    762    764    800 
Total interest expense  $15,160   $15,239   $14,832   $16,987   $17,146 
                          
Weighted average cost (annualized):                         
Interest-bearing deposits   2.76%   2.76%   2.92%   3.26%   3.28%
Federal Home Loan Bank borrowings   3.85%   3.79%   3.00%   3.32%   3.72%
Subordinated debt and other borrowings   5.08%   5.58%   6.26%   6.29%   6.59%
Total interest-bearing liabilities   3.03%   3.03%   3.01%   3.34%   3.45%
                          
Net interest income (taxable equivalent basis)  $17,584   $17,216   $16,485   $15,962   $15,579 
Less: taxable equivalent adjustment   (454)   (491)   (494)   (500)   (502)
Net interest income  $17,130   $16,725   $15,991   $15,462   $15,077 
                          
Interest rate spread (tax equivalent basis, annualized)   2.69%   2.62%   2.56%   2.34%   2.27%
                          
Net interest margin (tax equivalent basis, annualized)   3.07%   2.99%   2.93%   2.75%   2.72%