First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2024
JEFFERSONVILLE, Ind., July 25, 2024 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ:FSFG) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $4.1 million, or $0.60 per diluted share, for the quarter ended June 30, 2024 compared to net income of $2.3 million, or $0.34 per diluted share, for the quarter ended June 30, 2023. Excluding nonrecurring items, the Company reported net income of $3.5 million (non-GAAP measure)(1) and net income per diluted share of $0.52 (non-GAAP measure)(1) for the quarter ended June 30, 2024 compared to $2.3 million, or $0.34 per diluted share for the quarter ended June 30, 2023. The core banking segment reported net income of $4.7 million, or $0.69 per diluted share for the quarter ended June 30, 2024 compared to $2.9 million, or $0.43 per diluted share for the quarter ended June 30, 2023. Excluding nonrecurring items, the core banking segment reported net income of $4.2 million, or $0.61 per diluted share for the quarter ended June 30, 2024 (non-GAAP measure)(1) compared to $2.9 million, or $0.43 per diluted share for the quarter ended June 30, 2023.
Commenting on the Company's performance, Larry W. Myers, President and CEO, stated, "We're pleased to experience stabilization of the net interest margin along with a slowed pace of deposit migration into higher cost types and we're very well positioned to benefit in a rates-down environment. Asset quality remains strong and we're well prepared for any financial downturn that may occur. The results of the SBA Lending segment were disappointing, particularly with respect to loan sales. The SBA Lending pipeline is strong heading into the fourth fiscal quarter and we continue to evaluate strategies to improve financial performance. Additionally, we continue to evaluate and implement strategies to reduce balance sheet and operating inefficiencies. We continue to focus on strong asset quality; selective high-quality lending; deposit growth; and improvement of liquidity, capital and interest rate sensitivity positions. We've been successful in executing these strategies and we continue to move on the right trajectory, which we believe will deliver increasing financial results and 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 June 30, 2024 and 2023
Net interest income decreased $331,000, or 2.2%, to $14.5 million for the three months ended June 30, 2024 as compared to the same period in 2023. The tax equivalent net interest margin was 2.67% for the three months ended June 30, 2024 as compared to 2.94% for the same period in 2023. The decrease in net interest income was due to a $4.6 million increase in interest expense, partially offset by a $4.3 million increase in interest income. An average balance table including average asset yields and average liability costs is included in the table at the end of this release.
The Company recognized a provision for credit losses for loans of $501,000, a provision for unfunded lending commitments of $158,000 and a provision for credit losses for securities of $84,000 for the three months ended June 30, 2024, compared to a provision for loan losses of $441,000 for the same period in 2023. The Company recognized net charge-offs of $105,000 for the three months ended June 30, 2024, of which $49,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $61,000 in 2023.
Noninterest income decreased $4.0 million for the three months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to a $4.6 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. In addition, the Company recorded the estimated fair market value on Visa Class C shares of $436,000, with no corresponding amount for the same period in 2023.
Noninterest expense decreased $6.5 million for the three months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense of $3.7 million. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. In addition, the Company recognized a reversal of a contingency accrual of $283,000 during the quarter ended June 30, 2024, with no corresponding amount during the same period in 2023.
The Company recognized income tax expense of $483,000 for the three months ended June 30, 2024 compared to $331,000 for the same period in 2023. The increase was primarily due to higher taxable income in the 2024 period. The effective tax rate for 2024 was 10.6%, which was a decrease from the effective tax rate of 12.5% in 2023. The decrease in the effective tax rate was due primarily to greater utilization of solar tax credits in 2024 as compared to 2023.
Results of Operations for the Nine Months Ended June 30, 2024 and 2023
The Company reported net income of $9.9 million, or $1.45 per diluted share, for the nine months ended June 30, 2024 compared to net income of $8.9 million, or $1.29 per diluted share, for the nine months ended June 30, 2023. Excluding nonrecurring items, the Company reported net income of $9.4 million (non-GAAP measure)(1) and net income per diluted share of $1.37 (non-GAAP measure)(1) for the nine months ended June 30, 2024 compared to $8.9 million, or $1.29 per diluted share for the nine months ended June 30, 2023. The core banking segment reported net income of $13.3 million, or $1.94 per diluted share for the nine months ended June 30, 2024 compared to $12.3 million, or $1.79 for the nine months ended June 30, 2023. Excluding nonrecurring items, the core banking segment reported net income of $12.7 million (non-GAAP measure)(1), or $1.86 per diluted share for the nine months ended June 30, 2024 (non-GAAP measure)(1). Compared to $12.3 million, or $1.79 for the nine months ended June 30, 2023.
Net interest income decreased $3.1 million, or 6.6%, to $43.0 million for the nine months ended June 30, 2024 as compared to the same period 2023. The tax equivalent net interest margin for the nine months ended June 30, 2024 was 2.67% as compared to 3.13% for the same period in 2023. The decrease in net interest income was due to a $17.7 million increase in interest expense, partially offset by a $14.7 million increase in interest income. An average balance table including average asset yields and average liability costs is included in the table at the end of this release.
The Company recognized a provision for credit losses for loans of $1.7 million, a credit for unfunded lending commitments of $159,000 and a provision for credit losses for securities of $107,000 for the nine months ended June 30, 2024, compared to a provision for loan losses of $1.8 million for the same period in 2023. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $2.8 million from $13.9 million at September 30, 2023 to $16.8 million at June 30, 2024. The Company recognized net charge-offs of $224,000 for the nine months ended June 30, 2024, of which $15,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $320,000 in 2023, of which $264,000 was related to unguaranteed portions of SBA loans.
Noninterest income decreased $10.2 million for the nine months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to a $11.1 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.
Noninterest expense decreased $14.2 million for the nine months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense of $7.5 million and other operating expense of $4.3 million. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. The decrease in other operating expense was due primarily to a $916,000 decrease in net loss on captive insurance due to the dissolution of the captive insurance company in 2023, a decrease in loss contingency for SBA-guaranteed loans of $755,000 in 2024 compared to an increase of $490,000 in 2023, and a decrease in loss contingency for restitution to mortgage borrowers of $300,000 in 2024 compared to an increase of $609,000 in 2023.
The Company recognized income tax expense of $873,000 for the nine months ended June 30, 2024 compared to tax expense of $747,000 for the same period in 2023. The increase is primarily due to higher taxable income in the 2024 period. The effective tax rate for 2024 was 8.1%, which was an increase from the effective tax rate of 7.7% in 2023. The effective tax rate is well below the statutory tax rate primarily due to the utilization of solar tax credits in both the 2024 and 2023 periods.
Comparison of Financial Condition at June 30, 2024 and September 30, 2023
Total assets increased $104.6 million, from $2.29 billion at September 30, 2023 to $2.39 billion at June 30, 2024. Net loans held for investment increased $56.7 million during the nine months ended June 30, 2024 due primarily to growth in residential construction and commercial business loans. Loans held for sale increased by $80.0 million from $45.9 million at September 30, 2023 to $125.9 million, primarily due to the transfer of approximately $108.6 million of residential first lien home equity lines of credit that are intended for sale. Residential mortgage loan servicing rights decreased $59.8 million during the nine months ended June 30, 2024, due to the sale of the entire residential mortgage loan servicing rights portfolio during the period.
Total liabilities increased $87.6 million due primarily to increases in FHLB borrowings of $61.8 million and increases in total deposits of $30.4 million. As of June 30, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 30.3% of total deposits and 12.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.
Common stockholders' equity increased $17.0 million, from $151.0 million at September 30, 2023 to $168.0 million at June 30, 2024, due primarily to a $12.2 million decrease in accumulated other comprehensive loss and an increase in retained net income of $4.4 million. The decrease in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the nine months ended June 30, 2024, which resulted in an increase in the fair value of securities available for sale. At June 30, 2024 and September 30, 2023, 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 | Nine Months Ended | ||||||||||||||||||||
| OPERATING DATA: | June 30, | June 30, | |||||||||||||||||||
| (In thousands, except share and per share data) | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Total interest income | $ | 31,094 | $ | 26,798 | $ | 89,765 | $ | 75,092 | |||||||||||||
| Total interest expense | 16,560 | 11,933 | 46,780 | 29,054 | |||||||||||||||||
| Net interest income | 14,534 | 14,865 | 42,985 | 46,038 | |||||||||||||||||
| Provision for credit losses - loans | 501 | 441 | 1,684 | 1,797 | |||||||||||||||||
| Provision (credit) for unfunded lending commitments | 158 | - | (159 | ) | - | ||||||||||||||||
| Provision for credit losses - securities | 84 | - | 107 | - | |||||||||||||||||
| Net interest income after provision for credit losses | 13,791 | 14,424 | 41,353 | 44,241 | |||||||||||||||||
| Total noninterest income | 3,196 | 7,196 | 9,688 | 19,900 | |||||||||||||||||
| Total noninterest expense | 12,431 | 18,965 | 40,248 | 54,475 | |||||||||||||||||
| Income before income taxes | 4,556 | 2,655 | 10,793 | 9,666 | |||||||||||||||||
| Income tax expense | 483 | 331 | 873 | 747 | |||||||||||||||||
| Net income | $ | 4,073 | $ | 2,324 | $ | 9,920 | $ | 8,919 | |||||||||||||
| Net income per share, basic | $ | 0.60 | $ | 0.34 | $ | 1.45 | $ | 1.30 | |||||||||||||
| Weighted average shares outstanding, basic | 6,832,452 | 6,816,608 | 6,829,490 | 6,858,739 | |||||||||||||||||
| Net income per share, diluted | $ | 0.60 | $ | 0.34 | $ | 1.45 | $ | 1.29 | |||||||||||||
| Weighted average shares outstanding, diluted | 6,842,336 | 6,819,748 | 6,851,145 | 6,893,766 | |||||||||||||||||
| Performance ratios (annualized) | |||||||||||||||||||||
| Return on average assets | 0.69 | % | 0.29 | % | 0.57 | % | 0.50 | % | |||||||||||||
| Return on average equity | 9.86 | % | 4.01 | % | 8.23 | % | 6.86 | % | |||||||||||||
| Return on average common stockholders' equity | 9.86 | % | 4.01 | % | 8.23 | % | 6.86 | % | |||||||||||||
| Net interest margin (tax equivalent basis) | 2.67 | % | 2.94 | % | 2.67 | % | 3.13 | % | |||||||||||||
| Efficiency ratio | 70.11 | % | 88.62 | % | 76.41 | % | 83.45 | % | |||||||||||||
| QTD | FYTD | ||||||||||||||||||||
| FINANCIAL CONDITION DATA: | June 30, | March 31, | Increase | September 30, | Increase | ||||||||||||||||
| (In thousands, except per share data) | 2024 | 2024 | (Decrease) | 2023 | (Decrease) | ||||||||||||||||
| Total assets | $ | 2,393,491 | $ | 2,364,983 | $ | 28,508 | $ | 2,288,854 | $ | 104,637 | |||||||||||
| Cash and cash equivalents | 42,423 | 62,969 | (20,546 | ) | 30,845 | 11,578 | |||||||||||||||
| Investment securities | 238,785 | 240,142 | (1,357 | ) | 229,039 | 9,746 | |||||||||||||||
| Loans held for sale | 125,859 | 19,108 | 106,751 | 45,855 | 80,004 | ||||||||||||||||
| Gross loans | 1,846,769 | 1,901,850 | (55,081 | ) | 1,787,143 | 59,626 | |||||||||||||||
| Allowance for credit losses (1) | 19,789 | 19,392 | 397 | 16,900 | 2,889 | ||||||||||||||||
| Interest earning assets | 2,239,109 | 2,214,039 | 25,070 | 2,083,397 | 155,712 | ||||||||||||||||
| Goodwill | 9,848 | 9,848 | - | 9,848 | - | ||||||||||||||||
| Core deposit intangibles | 438 | 479 | (41 | ) | 561 | (123 | ) | ||||||||||||||
| Loan servicing rights | 2,860 | 3,028 | (168 | ) | 62,819 | (59,959 | ) | ||||||||||||||
| Noninterest-bearing deposits | 201,854 | 196,239 | 5,615 | 242,237 | (40,383 | ) | |||||||||||||||
| Interest-bearing deposits (customer) | 1,111,143 | 1,043,032 | 68,111 | 1,001,238 | 109,905 | ||||||||||||||||
| Interest-bearing deposits (brokered) | 399,151 | 548,175 | (149,024 | ) | 438,319 | (39,168 | ) | ||||||||||||||
| Federal Home Loan Bank borrowings | 425,000 | 315,000 | 110,000 | 363,183 | 61,817 | ||||||||||||||||
| Subordinated debt and other borrowings | 48,563 | 48,523 | 40 | 48,444 | 119 | ||||||||||||||||
| Total liabilities | 2,225,491 | 2,199,927 | 25,564 | 2,137,873 | 87,618 | ||||||||||||||||
| Accumulated other comprehensive loss | (17,415 | ) | (17,144 | ) | (271 | ) | (29,587 | ) | 12,172 | ||||||||||||
| Stockholders' equity | 168,000 | 165,056 | 2,944 | 150,981 | 17,019 | ||||||||||||||||
| Book value per share | $ | 24.41 | $ | 23.98 | 0.43 | $ | 21.99 | $ | 2.42 | ||||||||||||
| Tangible book value per share - Non-GAAP (2) | 22.91 | 22.48 | 0.43 | 20.47 | 2.44 | ||||||||||||||||
| Non-performing assets: | |||||||||||||||||||||
| Nonaccrual loans - SBA guaranteed | $ | 5,049 | $ | 5,053 | $ | (4 | ) | $ | 5,091 | $ | (42 | ) | |||||||||
| Nonaccrual loans | 11,705 | 10,585 | 1,120 | 8,857 | 2,848 | ||||||||||||||||
| Total nonaccrual loans | $ | 16,754 | $ | 15,638 | $ | 1,116 | $ | 13,948 | $ | 2,806 | |||||||||||
| Accruing loans past due 90 days | - | - | - | - | - | ||||||||||||||||
| Total non-performing loans | 16,754 | 15,638 | 1,116 | 13,948 | 2,806 | ||||||||||||||||
| Foreclosed real estate | 444 | 444 | - | 474 | (30 | ) | |||||||||||||||
| Troubled debt restructurings classified as performing loans | - | - | - | 1,266 | (1,266 | ) | |||||||||||||||
| Total non-performing assets | $ | 17,198 | $ | 16,082 | $ | 1,116 | $ | 15,688 | $ | 1,510 | |||||||||||
| Asset quality ratios: | |||||||||||||||||||||
| Allowance for credit losses as a percent of total gross loans | 1.07 | % | 1.02 | % | 0.05 | % | 0.95 | % | 0.13 | % | |||||||||||
| Allowance for credit losses as a percent of nonperforming loans | 118.12 | % | 124.01 | % | (5.89 | %) | 121.16 | % | (3.05 | %) | |||||||||||
| Nonperforming loans as a percent of total gross loans | 0.91 | % | 0.82 | % | 0.08 | % | 0.78 | % | 0.13 | % | |||||||||||
| Nonperforming assets as a percent of total assets | 0.72 | % | 0.68 | % | 0.04 | % | 0.69 | % | 0.03 | % | |||||||||||
| (1) The Company adopted ASU 2016-13 Topic 326 on October 1, 2023. Allowance was determined using expected loss methodology (CECL) as of June 30, 2024, March 31, 2024 and December 31, 2024. | |||||||||||||||||||||
| Allowance was determined using the previous incurred loss methodology as of September 30, 2023. | |||||||||||||||||||||
| (2) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of these figures. | |||||||||||||||||||||
| 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 | ||||||||||||||||||||
| June 30, | June 30, | ||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||
| Net Income(In thousands) | |||||||||||||||||||||
| Net income attributable to the Company (non-GAAP) | $ | 3,534 | $ | 2,324 | $ | 9,381 | $ | 8,919 | |||||||||||||
| Plus: Reversal of contingent liability, net of tax | 212 | - | 212 | - | |||||||||||||||||
| Plus: Record Visa Class C shares, net of tax | 327 | - | 327 | - | |||||||||||||||||
| Net income attributable to the Company (GAAP) | $ | 4,073 | $ | 2,324 | $ | 9,920 | $ | 8,919 | |||||||||||||
| Net Income per Share, Diluted | |||||||||||||||||||||
| Net income per share, diluted (non-GAAP) | $ | 0.52 | $ | 0.34 | $ | 1.37 | $ | 1.29 | |||||||||||||
| Plus: Reversal of contingent liability, net of tax | 0.03 | - | 0.03 | - | |||||||||||||||||
| Plus: Record Visa Class C shares, net of tax | 0.05 | - | 0.05 | - | |||||||||||||||||
| Net income per share, diluted (GAAP) | $ | 0.60 | $ | 0.34 | $ | 1.45 | $ | 1.29 | |||||||||||||
| Core Banking Net Income(In thousands) | |||||||||||||||||||||
| Net income attributable to the Core Bank (non-GAAP) | $ | 4,176 | $ | 2,921 | $ | 12,735 | $ | 12,304 | |||||||||||||
| Plus: Reversal of contingent liability, net of tax | 212 | - | 212 | - | |||||||||||||||||
| Plus: Record Visa Class C shares, net of tax | 327 | - | 327 | - | |||||||||||||||||
| Net income (loss) attributable to the Core Bank (GAAP) | $ | 4,715 | $ | 2,921 | $ | 13,274 | $ | 12,304 | |||||||||||||
| Core Bank Net Income per Share, Diluted | |||||||||||||||||||||
| Core Bank Net income per share, diluted (non-GAAP) | $ | 0.61 | $ | 0.43 | $ | 1.86 | $ | 1.79 | |||||||||||||
| Plus: Reversal of contingent liability, net of tax | 0.03 | - | 0.03 | - | |||||||||||||||||
| Plus: Record Visa Class C shares, net of tax | 0.05 | - | 0.05 | - | |||||||||||||||||
| Core Bank Net income per share, diluted (GAAP) | $ | 0.69 | $ | 0.43 | $ | 1.94 | $ | 1.79 | |||||||||||||
| Efficiency Ratio(In thousands) | |||||||||||||||||||||
| Net interest income (GAAP) | $ | 14,534 | $ | 14,865 | $ | 42,985 | $ | 46,038 | |||||||||||||
| Noninterest income (GAAP) | 3,196 | 7,196 | 9,688 | 19,900 | |||||||||||||||||
| Noninterest expense (GAAP) | 12,431 | 18,965 | 40,248 | 54,475 | |||||||||||||||||
| Efficiency ratio (GAAP) | 70.11 | % | 85.97 | % | 76.41 | % | 82.62 | % | |||||||||||||
| Noninterest income (GAAP) | $ | 3,196 | $ | 7,196 | $ | 9,688 | $ | 19,900 | |||||||||||||
| Less: Record Visa Class C shares | (436 | ) | - | (436 | ) | - | |||||||||||||||
| Noninterest income (Non-GAAP) | 2,760 | 7,196 | 9,252 | 19,900 | |||||||||||||||||
| Noninterest expense (GAAP) | $ | 12,431 | $ | 18,965 | $ | 40,248 | $ | 54,475 | |||||||||||||
| Plus: Reversal of contingent liability | 283 | - | 283 | - | |||||||||||||||||
| Noninterest expense (Non-GAAP) | 12,714 | 18,965 | 40,531 | 54,475 | |||||||||||||||||
| Efficiency ratio (excluding nonrecurring items) (non-GAAP) | 73.52 | % | 85.97 | % | 77.59 | % | 82.62 | % | |||||||||||||
| Tangible Book Value Per Share | June 30, | March 31, | Increase | September 30, | Increase | ||||||||||||||||
| (In thousands, except share and per share data) | 2024 | 2024 | (Decrease) | 2023 | (Decrease) | ||||||||||||||||
| Stockholders' equity, net of noncontrolling interests (GAAP) | $ | 168,000 | $ | 165,056 | $ | 2,944 | $ | 150,981 | $ | 17,019 | |||||||||||
| Less: goodwill and core deposit intangibles | (10,286 | ) | (10,327 | ) | 41 | (10,409 | ) | 123 | |||||||||||||
| Tangible equity (non-GAAP) | $ | 157,714 | $ | 154,729 | $ | 2,985 | $ | 140,572 | 17,142 | ||||||||||||
| Outstanding common shares | 6,883,656 | 6,883,160 | $ | 496 | 6,867,121 | 16,535 | |||||||||||||||
| Tangible book value per share (non-GAAP) | $ | 22.91 | $ | 22.48 | $ | 0.43 | $ | 20.47 | $ | 2.44 | |||||||||||
| Book value per share (GAAP) | $ | 24.41 | $ | 23.98 | $ | 0.43 | $ | 21.99 | $ | 2.42 | |||||||||||
| SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): | As of | ||||||||||||||||||||
| Summarized Consolidated Balance Sheets | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands, except per share data) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Total cash and cash equivalents | $ | 42,423 | $ | 62,969 | $ | 33,366 | $ | 30,845 | $ | 42,475 | |||||||||||
| Total investment securities | 238,785 | 240,142 | 246,801 | 229,039 | 249,788 | ||||||||||||||||
| Total loans held for sale | 125,859 | 19,108 | 22,866 | 45,855 | 63,142 | ||||||||||||||||
| Total loans, net of allowance for credit losses | 1,826,980 | 1,882,458 | 1,841,953 | 1,770,243 | 1,691,289 | ||||||||||||||||
| Loan servicing rights | 2,860 | 3,028 | 3,711 | 62,819 | 64,139 | ||||||||||||||||
| Total assets | 2,393,491 | 2,364,983 | 2,308,092 | 2,288,854 | 2,260,421 | ||||||||||||||||
| Customer deposits | $ | 1,312,997 | $ | 1,239,271 | $ | 1,180,951 | $ | 1,243,475 | $ | 1,245,534 | |||||||||||
| Brokered deposits | 399,151 | 548,175 | 502,895 | 438,319 | 414,231 | ||||||||||||||||
| Total deposits | 1,712,148 | 1,787,446 | 1,683,846 | 1,681,794 | 1,659,765 | ||||||||||||||||
| Federal Home Loan Bank borrowings | 425,000 | 315,000 | 356,699 | 363,183 | 345,000 | ||||||||||||||||
| Common stock and additional paid-in capital | $ | 27,592 | $ | 27,475 | $ | 27,397 | $ | 27,064 | $ | 27,518 | |||||||||||
| Retained earnings - substantially restricted | 170,688 | 167,648 | 163,753 | 166,306 | 168,015 | ||||||||||||||||
| Accumulated other comprehensive income (loss) | (17,415 | ) | (17,144 | ) | (13,606 | ) | (29,587 | ) | (17,565 | ) | |||||||||||
| Unearned stock compensation | (999 | ) | (1,096 | ) | (1,194 | ) | (1,015 | ) | (1,113 | ) | |||||||||||
| Less treasury stock, at cost | (11,866 | ) | (11,827 | ) | (11,827 | ) | (11,787 | ) | (11,787 | ) | |||||||||||
| Total stockholders' equity | 168,000 | 165,056 | 164,523 | 150,981 | 165,068 | ||||||||||||||||
| Outstanding common shares | 6,883,656 | 6,883,160 | 6,883,160 | 6,867,121 | 6,865,921 | ||||||||||||||||
| Three Months Ended | |||||||||||||||||||||
| Summarized Consolidated Statements of Income | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands, except per share data) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Total interest income | $ | 31,094 | $ | 30,016 | $ | 28,655 | $ | 28,137 | $ | 26,798 | |||||||||||
| Total interest expense | 16,560 | 15,678 | 14,542 | 12,601 | 11,933 | ||||||||||||||||
| Net interest income | 14,534 | 14,338 | 14,113 | 15,536 | 14,865 | ||||||||||||||||
| Provision for credit losses - loans | 501 | 713 | 412 | 815 | 441 | ||||||||||||||||
| Provision (credit) for unfunded lending commitments | 158 | (259 | ) | - | - | - | |||||||||||||||
| Provision for credit losses - securities | 84 | 23 | - | - | - | ||||||||||||||||
| Net interest income after provision for credit losses | 13,791 | 13,861 | 13,701 | 14,721 | 14,424 | ||||||||||||||||
| Total noninterest income | 3,196 | 3,710 | 2,782 | 5,442 | 7,196 | ||||||||||||||||
| Total noninterest expense | 12,431 | 11,778 | 16,039 | 21,647 | 18,965 | ||||||||||||||||
| Income (loss) before income taxes | 4,556 | 5,793 | 444 | (1,484 | ) | 2,655 | |||||||||||||||
| Income tax expense (benefit) | 483 | 866 | (476 | ) | (737 | ) | 331 | ||||||||||||||
| Net income (loss) | $ | 4,073 | $ | 4,927 | $ | 920 | $ | (747 | ) | $ | 2,324 | ||||||||||
| Net income (loss) per share, basic | $ | 0.60 | $ | 0.72 | $ | 0.13 | $ | (0.11 | ) | $ | 0.34 | ||||||||||
| Weighted average shares outstanding, basic | 6,832,452 | 6,832,130 | 6,823,948 | 6,817,365 | 6,816,608 | ||||||||||||||||
| Net income (loss) per share, diluted | $ | 0.60 | $ | 0.72 | $ | 0.13 | $ | (0.11 | ) | $ | 0.34 | ||||||||||
| Weighted average shares outstanding, diluted | 6,842,336 | 6,859,611 | 6,839,704 | 6,837,919 | 6,819,748 | ||||||||||||||||
| SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): | Three Months Ended | ||||||||||||||||||||
| Noninterest Income Detail | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Service charges on deposit accounts | $ | 538 | $ | 387 | $ | 473 | $ | 479 | $ | 509 | |||||||||||
| ATM and interchange fees | 593 | 585 | 449 | 816 | 615 | ||||||||||||||||
| Net loss on sales of available for sale securities | - | - | - | (11 | ) | (540 | ) | ||||||||||||||
| Net unrealized gain on equity securities | 419 | 6 | 38 | 11 | 11 | ||||||||||||||||
| Net gain on sales of loans, Small Business Administration | 581 | 951 | 834 | 538 | 497 | ||||||||||||||||
| Mortgage banking income | 49 | 53 | 89 | 3,018 | 4,668 | ||||||||||||||||
| Increase in cash surrender value of life insurance | 353 | 333 | 329 | 311 | 279 | ||||||||||||||||
| Commission income | 220 | 220 | 222 | 182 | 247 | ||||||||||||||||
| Real estate lease income | 154 | 115 | 115 | 116 | 119 | ||||||||||||||||
| Net gain on premises and equipment | - | 120 | - | 20 | - | ||||||||||||||||
| Gain from repurchase of subordinated debt | - | - | - | - | 660 | ||||||||||||||||
| Other income | 289 | 940 | 233 | (38 | ) | 131 | |||||||||||||||
| Total noninterest income | $ | 3,196 | $ | 3,710 | $ | 2,782 | $ | 5,442 | $ | 7,196 | |||||||||||
| Three Months Ended | |||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||
| Consolidated Performance Ratios (Annualized) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Return on average assets | 0.69 | % | 0.92 | % | 0.16 | % | (0.13 | %) | 0.41 | % | |||||||||||
| Return on average equity | 9.86 | % | 13.06 | % | 2.42 | % | (1.82 | %) | 5.60 | % | |||||||||||
| Return on average common stockholders' equity | 9.86 | % | 13.06 | % | 2.42 | % | (1.82 | %) | 5.60 | % | |||||||||||
| Net interest margin (tax equivalent basis) | 2.67 | % | 2.66 | % | 2.69 | % | 3.03 | % | 2.94 | % | |||||||||||
| Efficiency ratio | 70.11 | % | 65.26 | % | 94.93 | % | 103.19 | % | 85.97 | % | |||||||||||
| As of or for the Three Months Ended | |||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||
| Consolidated Asset Quality Ratios | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Nonperforming loans as a percentage of total loans | 0.91 | % | 0.82 | % | 0.83 | % | 0.78 | % | 0.69 | % | |||||||||||
| Nonperforming assets as a percentage of total assets | 0.72 | % | 0.68 | % | 0.69 | % | 0.69 | % | 0.62 | % | |||||||||||
| Allowance for credit losses as a percentage of total loans | 1.07 | % | 1.02 | % | 1.01 | % | 0.95 | % | 0.99 | % | |||||||||||
| Allowance for credit losses as a percentage of nonperforming loans | 118.12 | % | 124.01 | % | 121.16 | % | 121.16 | % | 143.83 | % | |||||||||||
| Net charge-offs to average outstanding loans | 0.01 | % | 0.01 | % | 0.00 | % | 0.04 | % | 0.00 | % | |||||||||||
| SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): | Three Months Ended | ||||||||||||||||||||
| Segmented Statements of Income Information | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Core Banking Segment: | |||||||||||||||||||||
| Net interest income | $ | 13,590 | $ | 13,469 | $ | 13,113 | $ | 14,167 | $ | 13,407 | |||||||||||
| Provision (credit) for credit losses - loans | 320 | 909 | (49 | ) | 1,266 | 880 | |||||||||||||||
| Provision for unfunded lending commitments | 64 | (259 | ) | - | - | - | |||||||||||||||
| Provision for credit losses - securities | 84 | 23 | - | - | - | ||||||||||||||||
| Net interest income after provision for credit losses | 13,122 | 12,796 | 13,162 | 12,901 | 12,527 | ||||||||||||||||
| Noninterest income | 2,474 | 2,537 | 1,679 | 2,136 | 1,965 | ||||||||||||||||
| Noninterest expense | 10,192 | 10,093 | 10,252 | 13,559 | 11,010 | ||||||||||||||||
| Income before income taxes | 5,404 | 5,240 | 4,589 | 1,478 | 3,482 | ||||||||||||||||
| Income tax expense | 689 | 729 | 541 | 3 | 561 | ||||||||||||||||
| Net income | $ | 4,715 | $ | 4,511 | $ | 4,048 | $ | 1,475 | $ | 2,921 | |||||||||||
| SBA Lending Segment (Q2 Business Capital, LLC): | |||||||||||||||||||||
| Net interest income | $ | 944 | $ | 869 | $ | 1,003 | $ | 990 | $ | 1,098 | |||||||||||
| Provision (credit) for credit losses - loans | 181 | (196 | ) | 461 | (451 | ) | (439 | ) | |||||||||||||
| Provision for unfunded lending commitments | 94 | - | - | - | - | ||||||||||||||||
| Provision for credit losses - securities | - | - | - | - | - | ||||||||||||||||
| Net interest income after provision for credit losses | 669 | 1,065 | 542 | 1,441 | 1,537 | ||||||||||||||||
| Noninterest income | 722 | 1,173 | 1,003 | 367 | 580 | ||||||||||||||||
| Noninterest expense | 2,239 | 1,685 | 2,146 | 2,907 | 2,107 | ||||||||||||||||
| Income (loss) before income taxes | (848 | ) | 553 | (601 | ) | (1,099 | ) | 10 | |||||||||||||
| Income tax expense (benefit) | (206 | ) | 137 | (131 | ) | (273 | ) | (21 | ) | ||||||||||||
| Net income (loss) | $ | (642 | ) | $ | 416 | $ | (470 | ) | $ | (826 | ) | $ | 31 | ||||||||
| Mortgage Banking Segment: (3) | |||||||||||||||||||||
| Net interest income (loss) | $ | - | $ | - | $ | (3 | ) | $ | 379 | $ | 360 | ||||||||||
| Provision for credit losses - loans | - | - | - | - | - | ||||||||||||||||
| Provision for unfunded lending commitments | - | - | - | - | - | ||||||||||||||||
| Provision for credit losses - securities | - | - | - | - | - | ||||||||||||||||
| Net interest income (loss) after provision for credit losses | - | - | (3 | ) | 379 | 360 | |||||||||||||||
| Noninterest income | - | - | 100 | 2,939 | 4,651 | ||||||||||||||||
| Noninterest expense | - | - | 3,641 | 5,181 | 5,848 | ||||||||||||||||
| Loss before income taxes | - | - | (3,544 | ) | (1,863 | ) | (837 | ) | |||||||||||||
| Income tax benefit | - | - | (886 | ) | (467 | ) | (209 | ) | |||||||||||||
| Net loss | $ | - | $ | - | $ | (2,658 | ) | $ | (1,396 | ) | $ | (628 | ) | ||||||||
| (3) 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 | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands, except percentage data) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Net Income (Loss) Per Share by Segment | |||||||||||||||||||||
| Net income per share, basic - Core Banking | $ | 0.69 | $ | 0.66 | $ | 0.59 | $ | 0.22 | $ | 0.43 | |||||||||||
| Net income (loss) per share, basic - SBA Lending (Q2 Business Capital, LLC) | (0.09 | ) | 0.06 | (0.07 | ) | (0.12 | ) | - | |||||||||||||
| Net income (loss) per share, basic - Mortgage Banking | 0.00 | 0.00 | (0.40 | ) | (0.21 | ) | (0.09 | ) | |||||||||||||
| Total net income (loss) per share, basic | $ | 0.60 | $ | 0.72 | $ | 0.12 | $ | (0.11 | ) | $ | 0.34 | ||||||||||
| Net Income (Loss) Per Diluted Share by Segment | |||||||||||||||||||||
| Net income per share, diluted - Core Banking | $ | 0.69 | $ | 0.66 | $ | 0.59 | $ | 0.22 | $ | 0.43 | |||||||||||
| Net income (loss) per share, diluted - SBA Lending (Q2 Business Capital, LLC) | (0.09 | ) | 0.06 | (0.07 | ) | (0.12 | ) | - | |||||||||||||
| Net loss per share, diluted - Mortgage Banking | 0.00 | 0.00 | (0.40 | ) | (0.21 | ) | (0.09 | ) | |||||||||||||
| Total net income (loss) per share, diluted | $ | 0.60 | $ | 0.72 | $ | 0.12 | $ | (0.11 | ) | $ | 0.34 | ||||||||||
| Return on Average Assets by Segment (annualized) (4) | |||||||||||||||||||||
| Core Banking | 0.83 | % | 0.80 | % | 0.73 | % | 0.28 | % | 0.61 | % | |||||||||||
| SBA Lending | (2.91 | %) | 1.81 | % | (2.11 | %) | (3.81 | %) | 0.15 | % | |||||||||||
| Efficiency Ratio by Segment (annualized) (4) | |||||||||||||||||||||
| Core Banking | 63.45 | % | 63.06 | % | 69.31 | % | 83.17 | % | 71.62 | % | |||||||||||
| SBA Lending | 134.39 | % | 82.52 | % | 106.98 | % | 214.22 | % | 125.57 | % | |||||||||||
| Three Months Ended | |||||||||||||||||||||
| Noninterest Expense Detail by Segment | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Core Banking Segment: | |||||||||||||||||||||
| Compensation | $ | 5,587 | $ | 5,656 | $ | 5,691 | $ | 6,528 | $ | 4,978 | |||||||||||
| Occupancy | 1,573 | 1,615 | 1,481 | 1,418 | 1,738 | ||||||||||||||||
| Advertising | 253 | 205 | 189 | 404 | 334 | ||||||||||||||||
| Other | 2,779 | 2,617 | 2,891 | 5,209 | 3,960 | ||||||||||||||||
| Total Noninterest Expense | $ | 10,192 | $ | 10,093 | $ | 10,252 | $ | 13,559 | $ | 11,010 | |||||||||||
| SBA Lending Segment (Q2 Business Capital, LLC): | |||||||||||||||||||||
| Compensation | $ | 1,893 | $ | 1,933 | $ | 1,826 | $ | 1,533 | $ | 1,803 | |||||||||||
| Occupancy | 51 | 58 | 91 | 68 | 70 | ||||||||||||||||
| Advertising | 12 | 7 | 10 | 10 | 11 | ||||||||||||||||
| Other | 283 | (313 | ) | 219 | 1,296 | 223 | |||||||||||||||
| Total Noninterest Expense | $ | 2,239 | $ | 1,685 | $ | 2,146 | $ | 2,907 | $ | 2,107 | |||||||||||
| Mortgage Banking Segment: (4) | |||||||||||||||||||||
| Compensation | $ | - | $ | - | $ | 2,146 | $ | 3,647 | $ | 4,357 | |||||||||||
| Occupancy | - | - | 469 | 395 | 469 | ||||||||||||||||
| Advertising | - | - | 119 | 129 | 191 | ||||||||||||||||
| Other | - | - | 907 | 1,010 | 831 | ||||||||||||||||
| Total Noninterest Expense | $ | - | $ | - | $ | 3,641 | $ | 5,181 | $ | 5,848 | |||||||||||
| (4) 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 Business Capital, LLC) Data | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands, except percentage data) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Final funded loans guaranteed portion sold, SBA | $ | 7,515 | $ | 15,144 | $ | 14,098 | $ | 8,431 | $ | 7,721 | |||||||||||
| Gross gain on sales of loans, SBA | $ | 811 | $ | 1,443 | $ | 1,303 | $ | 809 | $ | 780 | |||||||||||
| Weighted average gross gain on sales of loans, SBA | 10.79 | % | 9.53 | % | 9.24 | % | 9.60 | % | 10.10 | % | |||||||||||
| Net gain on sales of loans, SBA (5) | $ | 581 | $ | 951 | $ | 834 | $ | 538 | $ | 497 | |||||||||||
| Weighted average net gain on sales of loans, SBA | 7.73 | % | 6.28 | % | 5.92 | % | 6.38 | % | 6.44 | % | |||||||||||
| (5) 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 | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| (In thousands) | 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Interest-earning assets | |||||||||||||||||||||
| Average balances: | |||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 26,100 | $ | 24,587 | $ | 20,350 | $ | 21,631 | $ | 20,661 | |||||||||||
| Loans | 1,943,716 | 1,914,609 | 1,857,654 | 1,796,749 | 1,719,733 | ||||||||||||||||
| Investment securities - taxable | 101,350 | 102,699 | 103,728 | 105,393 | 109,319 | ||||||||||||||||
| Investment securities - nontaxable | 157,991 | 157,960 | 159,907 | 160,829 | 234,118 | ||||||||||||||||
| FRB and FHLB stock | 24,986 | 24,986 | 24,968 | 24,939 | 24,509 | ||||||||||||||||
| Total interest-earning assets | $ | 2,254,143 | $ | 2,224,841 | $ | 2,166,607 | $ | 2,109,541 | $ | 2,108,340 | |||||||||||
| Interest income (tax equivalent basis): | |||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 324 | $ | 261 | $ | 249 | $ | 266 | $ | 267 | |||||||||||
| Loans | 28,155 | 27,133 | 26,155 | 25,214 | 23,279 | ||||||||||||||||
| Investment securities - taxable | 918 | 923 | 942 | 969 | 984 | ||||||||||||||||
| Investment securities - nontaxable | 1,665 | 1,662 | 1,687 | 1,695 | 2,456 | ||||||||||||||||
| FRB and FHLB stock | 519 | 499 | 74 | 428 | 423 | ||||||||||||||||
| Total interest income (tax equivalent basis) | $ | 31,581 | $ | 30,478 | $ | 29,107 | $ | 28,572 | $ | 27,409 | |||||||||||
| Weighted average yield (tax equivalent basis, annualized): | |||||||||||||||||||||
| Interest-bearing deposits with banks | 4.97 | % | 4.25 | % | 4.89 | % | 4.92 | % | 5.17 | % | |||||||||||
| Loans | 5.79 | % | 5.67 | % | 5.63 | % | 5.61 | % | 5.41 | % | |||||||||||
| Investment securities - taxable | 3.62 | % | 3.59 | % | 3.63 | % | 3.68 | % | 3.60 | % | |||||||||||
| Investment securities - nontaxable | 4.22 | % | 4.21 | % | 4.22 | % | 4.22 | % | 4.20 | % | |||||||||||
| FRB and FHLB stock | 8.31 | % | 7.99 | % | 1.19 | % | 6.86 | % | 6.90 | % | |||||||||||
| Total interest-earning assets | 5.60 | % | 5.48 | % | 5.37 | % | 5.42 | % | 5.20 | % | |||||||||||
| Interest-bearing liabilities | |||||||||||||||||||||
| Interest-bearing deposits | $ | 1,572,871 | $ | 1,549,012 | $ | 1,389,384 | $ | 1,385,994 | $ | 1,278,776 | |||||||||||
| Fed funds purchased | - | - | - | 76 | 11 | ||||||||||||||||
| Federal Home Loan Bank borrowings | 351,227 | 333,275 | 440,786 | 353,890 | 434,182 | ||||||||||||||||
| Subordinated debt and other borrowings | 48,537 | 48,497 | 48,458 | 48,406 | 49,339 | ||||||||||||||||
| Total interest-bearing liabilities | $ | 1,972,635 | $ | 1,930,784 | $ | 1,878,628 | $ | 1,788,366 | $ | 1,762,308 | |||||||||||
| Interest expense: | |||||||||||||||||||||
| Interest-bearing deposits | $ | 12,740 | $ | 12,546 | $ | 9,989 | $ | 9,457 | $ | 7,791 | |||||||||||
| Fed funds purchased | - | - | - | 1 | - | ||||||||||||||||
| Federal Home Loan Bank borrowings | 3,021 | 2,298 | 3,769 | 2,459 | 3,446 | ||||||||||||||||
| Subordinated debt and other borrowings | 799 | 833 | 784 | 684 | 696 | ||||||||||||||||
| Total interest expense | $ | 16,560 | $ | 15,677 | $ | 14,542 | $ | 12,601 | $ | 11,933 | |||||||||||
| Weighted average cost (annualized): | |||||||||||||||||||||
| Interest-bearing deposits | 3.24 | % | 3.24 | % | 2.88 | % | 2.73 | % | 2.44 | % | |||||||||||
| Fed funds purchased | 0.00 | % | 0.00 | % | 0.00 | % | 5.26 | % | 0.00 | % | |||||||||||
| Federal Home Loan Bank borrowings | 3.44 | % | 2.76 | % | 3.42 | % | 2.78 | % | 3.17 | % | |||||||||||
| Subordinated debt and other borrowings | 6.58 | % | 6.87 | % | 6.47 | % | 5.65 | % | 5.64 | % | |||||||||||
| Total interest-bearing liabilities | 3.36 | % | 3.25 | % | 3.10 | % | 2.82 | % | 2.71 | % | |||||||||||
| Net interest income (taxable equivalent basis) | $ | 15,021 | $ | 14,801 | $ | 14,565 | $ | 15,971 | $ | 15,476 | |||||||||||
| Less: taxable equivalent adjustment | (487 | ) | (463 | ) | (452 | ) | (435 | ) | (611 | ) | |||||||||||
| Net interest income | $ | 14,534 | $ | 14,338 | $ | 14,113 | $ | 15,536 | $ | 14,865 | |||||||||||
| Interest rate spread (tax equivalent basis, annualized) | 2.24 | % | 2.23 | % | 2.27 | % | 2.60 | % | 2.49 | % | |||||||||||
| Net interest margin (tax equivalent basis, annualized) | 2.67 | % | 2.66 | % | 2.69 | % | 3.03 | % | 2.94 | % | |||||||||||
