CLARKSVILLE, Ind., Jan. 29, 2019 (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 $2.9 million, or $1.24 per diluted share, for the quarter ended December 31, 2018 compared to net income of $3.4 million, or $1.44 per diluted share, for the quarter ended December 31, 2017. Net income for the quarter ended December 31, 2018 was negatively impacted by interest expense of $245,000, net of taxes, related to the Company’s issuance of $20.0 million of subordinated debt in September 2018, which amounted to $0.10 per diluted share for the quarter.
Net interest income increased $1.5 million, or 18.9%, to $9.6 million for the quarter ended December 31, 2018 as compared to the same quarter in 2017. The improved net interest income performance is due to a $2.4 million increase in interest income, which was partially offset by an $852,000 increase in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $130.5 million, from $859.3 million for 2017 to $989.8 million for 2018, and an increase in the weighted average tax-equivalent yield, from 4.52% for 2017 to 4.88% for 2018. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $67.8 million, from $709.3 million for 2017 to $777.1 million for 2018, and an increase in the average cost of interest-bearing liabilities, from 0.77% for 2017 to 1.15% for 2018. Increases for the 2018 quarter related to subordinated debt included interest expense of $322,000, including amortization of debt issuance costs, and $19.7 million in the average balance of interest-bearing liabilities, including debt issuance costs. The increase in the average cost of interest-bearing liabilities for the 2018 quarter was due primarily to the subordinated debt’s average cost of 6.55%, including amortization of debt issuance costs. Additional details are included in the “Summarized Consolidated Average Balance Sheets” table at the end of this release.
The Company recognized $315,000 in provision for loan losses for the quarter ended December 31, 2018, compared to $462,000 of provision for loan losses recognized in the same quarter in 2017. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $335,000, from $4.3 million at September 30, 2018 to $4.6 million at December 31, 2018. The Company recognized net charge-offs of $18,000 for the quarter ended December 31, 2018 compared to $43,000 for the same quarter in 2017.
Noninterest income increased $2.9 million for the quarter ended December 31, 2018 as compared to the same quarter in 2017. The increase was due primarily to an increase in mortgage banking income of $3.2 million, which was partially offset by a decrease in the net gain on sale of loans guaranteed by the U.S. Small Business Administration (“SBA”) of $575,000. The increase in mortgage banking income is due to production from the secondary-market residential mortgage lending segment that commenced operations in April 2018. The Bank’s SBA lending activities are performed under Q2 Business Capital, LLC (“Q2”), which specializes in the origination and servicing of SBA loans and of which the Bank owns 51% with the option to purchase the minority interest in September 2020. Despite the 51% ownership by the Bank, gross revenues and expenses related to Q2 are reported in the consolidated income statements and the net income attributable to noncontrolling interests is then subtracted to arrive at net income attributable to the Company. Additional details regarding the financial performance of the mortgage banking and SBA lending segments are included in the “Segmented Income Statement Information” table at the end of this release.
Noninterest expense increased $5.0 million for the quarter ended December 31, 2018 as compared to the same quarter in 2017. The increase was due primarily to increases in compensation and benefits, occupancy and equipment, and other operating expenses of $3.2 million, $583,000 and $677,000, respectively. The increase in compensation and benefits expense is attributable to the addition of new employees to support the growth of the Company, including its mortgage banking and SBA lending activities, and normal salary and benefits adjustments. The increase in occupancy and equipment expense is primarily attributable to increases in lease and rental, depreciation and equipment, and software licensing expenses that are primarily related to the new mortgage banking activities. The increase in other operating expenses is primarily due to increases in loan expense related to the mortgage banking activities and insurance reserves and claims related to the Company’s captive insurance subsidiary.
The Company recognized income tax expense of $522,000 for the quarter ended December 31, 2018, for an effective tax rate of 14.4%, as compared to income tax expense of $622,000, for an effective tax rate of 15.1%, for the same quarter in 2017.
Comparison of Financial Condition at December 31, 2018 and September 30, 2018
Total assets increased $39.6 million, from $1.03 billion at September 30, 2018 to $1.07 billion at December 31, 2018. Net loans increased $29.8 million due primarily to continued growth in the commercial real estate and SBA loan portfolios. Total deposits increased $21.0 million due to a $19.6 million increase in interest-bearing deposit accounts and a $1.4 million increase in noninterest-bearing deposit accounts. Borrowings from the Federal Home Loan Bank increased $17.0 million.
Common stockholders’ equity increased $4.2 million, from $98.8 million at September 30, 2018 to $103.0 million at December 31, 2018, due primarily to retained net income of $2.6 million and net unrealized gains of $1.4 million on the available for sale securities portfolio. At December 31, 2018 and September 30, 2018, the Company and Bank were considered “well-capitalized” under applicable regulatory capital guidelines.
First Savings Bank has sixteen offices in the Indiana communities of Clarksville, Jeffersonville, Charlestown, Sellersburg, New Albany, Georgetown, Corydon, Lanesville, Elizabeth, English, Leavenworth, Marengo, Salem, Odon and Montgomery. Access to First Savings Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank’s website at www.fsbbank.net.
This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.
Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company’s filings with the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
Contact
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724
| FIRST SAVINGS FINANCIAL GROUP, INC. | ||||||||||||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| OPERATING DATA: | 2018 | 2017 | ||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||||
| Total interest income | $ | 11,801 | $ | 9,426 | ||||||||||||||||
| Total interest expense | 2,225 | 1,373 | ||||||||||||||||||
| Net interest income | 9,576 | 8,053 | ||||||||||||||||||
| Provision for loan losses | 315 | 462 | ||||||||||||||||||
| Net interest income after provision for loan losses | 9,261 | 7,591 | ||||||||||||||||||
| Total noninterest income | 5,781 | 2,906 | ||||||||||||||||||
| Total noninterest expense | 11,416 | 6,382 | ||||||||||||||||||
| Income before income taxes | 3,626 | 4,115 | ||||||||||||||||||
| Income tax expense | 522 | 622 | ||||||||||||||||||
| Net income | 3,104 | 3,493 | ||||||||||||||||||
| Less: Net income attributable to noncontrolling interest | 173 | 87 | ||||||||||||||||||
| Net income attributable to the Company | $ | 2,931 | $ | 3,406 | ||||||||||||||||
| Net income per share, basic | $ | 1.28 | $ | 1.53 | ||||||||||||||||
| Weighted average shares outstanding, basic | 2,284,665 | 2,228,256 | ||||||||||||||||||
| Net income per share, diluted | $ | 1.24 | $ | 1.44 | ||||||||||||||||
| Weighted average shares outstanding, diluted | 2,371,480 | 2,358,935 | ||||||||||||||||||
| December 31, | September 30, | Increase | ||||||||||||||||||
| FINANCIAL CONDITION DATA: | 2018 | 2018 | (Decrease) | |||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| Total assets | $ | 1,073,989 | $ | 1,034,406 | $ | 39,583 | ||||||||||||||
| Cash and cash equivalents | 36,344 | 42,274 | (5,930 | ) | ||||||||||||||||
| Investment securities | 188,830 | 186,980 | 1,850 | |||||||||||||||||
| Loans held for sale | 37,952 | 32,125 | 5,827 | |||||||||||||||||
| Gross loans | 743,681 | 713,594 | 30,087 | |||||||||||||||||
| Allowance for loan losses | 9,620 | 9,323 | 297 | |||||||||||||||||
| Interest earning assets | 998,850 | 963,581 | 35,269 | |||||||||||||||||
| Goodwill | 9,848 | 9,848 | – | |||||||||||||||||
| Core deposit intangibles | 1,601 | 1,727 | (126 | ) | ||||||||||||||||
| Noninterest-bearing deposits | 169,062 | 167,705 | 1,357 | |||||||||||||||||
| Interest-bearing deposits | 663,011 | 643,407 | 19,604 | |||||||||||||||||
| FHLB borrowings | 107,019 | 90,000 | 17,019 | |||||||||||||||||
| Total liabilities | 969,428 | 934,161 | 35,267 | |||||||||||||||||
| Stockholders’ equity, net of noncontrolling interests | 102,968 | 98,813 | 4,155 | |||||||||||||||||
| Book value per share | $ | 44.68 | $ | 43.11 | $ | 1.57 | ||||||||||||||
| Tangible book value per share (1) | 39.72 | 38.06 | 1.65 | |||||||||||||||||
| Non-performing assets: | ||||||||||||||||||||
| Nonaccrual loans | $ | 4,551 | $ | 4,182 | $ | 369 | ||||||||||||||
| Accruing loans past due 90 days | 57 | 91 | (34 | ) | ||||||||||||||||
| Total non-performing loans | 4,608 | 4,273 | 335 | |||||||||||||||||
| Foreclosed real estate | 232 | 103 | 129 | |||||||||||||||||
| Troubled debt restructurings classified as performing loans | 8,855 | 9,145 | – 290 | |||||||||||||||||
| Other nonperforming assets | – | – | – | |||||||||||||||||
| Total non-performing assets | $ | 13,695 | $ | 13,521 | $ | 174 | ||||||||||||||
| Asset quality ratios: | ||||||||||||||||||||
| Allowance for loan losses as a percent of | ||||||||||||||||||||
| total gross loans | 1.29 | % | 1.31 | % | -0.01 | % | ||||||||||||||
| Allowance for loan losses as a percent of | ||||||||||||||||||||
| nonperforming loans | 208.77 | % | 218.18 | % | -9.42 | % | ||||||||||||||
| Nonperforming loans as a percent of total gross loans | 0.62 | % | 0.60 | % | 0.02 | % | ||||||||||||||
| Nonperforming assets as a percent of total assets | 1.28 | % | 1.31 | % | -0.03 | % | ||||||||||||||
| (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: | ||||||||||||||||||||
| 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 | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| Net Income | 2018 | 2017 | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Net income attributable to the Company (Non-GAAP) | $ | 2,931 | $ | 3,367 | ||||||||||||||||
| Less: Merger-related expenses, net of tax effect | – | (83 | ) | |||||||||||||||||
| Less: Effect of adjustment to deferred taxes due to tax law change | – | 122 | ||||||||||||||||||
| Net income attributable to the Company (GAAP) | $ | 2,931 | $ | 3,406 | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| Net Income per Share, Diluted | 2018 | 2017 | ||||||||||||||||||
| Net income per share, diluted (non-GAAP) | $ | 1.24 | $ | 1.43 | ||||||||||||||||
| Less: Merger-related expenses, net of tax effect | – | (0.04 | ) | |||||||||||||||||
| Less: Effect of adjustment to deferred taxes due to tax law change | – | 0.05 | ||||||||||||||||||
| Net income per share, diluted (GAAP) | $ | 1.24 | $ | 1.44 | ||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | ||||||||||||||||||||
| Efficiency Ratio | 2018 | 2017 | ||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Noninterest expense (GAAP) | $ | 11,416 | $ | 6,382 | ||||||||||||||||
| Net interest income (GAAP) | 9,576 | 8,053 | ||||||||||||||||||
| Noninterest income (GAAP) | 5,781 | 2,906 | ||||||||||||||||||
| Efficiency ratio (GAAP) | 74.34 | % | 58.24 | % | ||||||||||||||||
| Noninterest expense (GAAP) | $ | 11,416 | $ | 6,382 | ||||||||||||||||
| Less: Merger-related expenses | – | (110 | ) | |||||||||||||||||
| Noninterest expense (Non-GAAP) | 11,416 | 6,272 | ||||||||||||||||||
| Net interest income (GAAP) | 9,576 | 8,053 | ||||||||||||||||||
| Noninterest income (GAAP) | 5,781 | 2,906 | ||||||||||||||||||
| Efficiency ratio (excluding nonrecurring items) (Non-GAAP) | 74.34 | % | 57.23 | % | ||||||||||||||||
| December 31, | September 30, | |||||||||||||||||||
| Tangible Book Value Per Share: | 2018 | 2018 | ||||||||||||||||||
| (In thousands, except share and per share data) | ||||||||||||||||||||
| Stockholders’ equity (GAAP) | $ | 102,968 | $ | 98,813 | ||||||||||||||||
| Less: goodwill and core deposit intangibles | (11,449 | ) | (11,575 | ) | ||||||||||||||||
| Tangible equity (Non-GAAP) | 91,519 | 87,238 | ||||||||||||||||||
| Shares outstanding | 2,304,310 | 2,292,021 | ||||||||||||||||||
| Tangible book value per share (Non-GAAP) | $ | 39.72 | $ | 38.06 | ||||||||||||||||
| Book value per share (GAAP) | $ | 44.68 | $ | 43.11 | ||||||||||||||||
| SUMMARIZED FINANCIAL INFORMATION: | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Summarized Consolidated Balance Sheets | 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| (In thousands, except share data) | ||||||||||||||||||||
| Total cash and cash equivalents | $ | 36,344 | $ | 42,274 | $ | 38,002 | $ | 39,030 | $ | 39,031 | ||||||||||
| Total investment securities | 188,830 | 186,980 | 210,758 | 198,206 | 185,977 | |||||||||||||||
| Total loans, net of allowance for loan losses | 734,061 | 704,271 | 693,858 | 682,441 | 616,993 | |||||||||||||||
| Total assets | 1,073,989 | 1,034,406 | 1,035,346 | 1,008,554 | 930,152 | |||||||||||||||
| Total deposits | 832,073 | 811,112 | 834,754 | 758,787 | 675,449 | |||||||||||||||
| Total borrowings from the Federal Home Loan Bank | 107,019 | 90,000 | 90,000 | 144,223 | 150,000 | |||||||||||||||
| Total Company Stockholders’ Equity | 102,968 | 98,813 | 97,640 | 95,164 | 95,320 | |||||||||||||||
| Noncontrolling interests in subsidiary | 1,593 | 1,432 | 1,229 | 663 | 87 | |||||||||||||||
| Total Equity | 104,561 | 100,245 | 98,869 | 95,827 | 95,407 | |||||||||||||||
| Outstanding common shares | 2,304,310 | 2,292,021 | 2,292,021 | 2,279,021 | 2,251,539 | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Summarized Consolidated Statements of Income | 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| Total interest income | $ | 11,801 | $ | 11,381 | $ | 11,206 | $ | 10,146 | $ | 9,426 | ||||||||||
| Total interest expense | 2,225 | 1,842 | 1,699 | 1,423 | 1,373 | |||||||||||||||
| Net interest income | 9,576 | 9,539 | 9,507 | 8,723 | 8,053 | |||||||||||||||
| Provision for loan losses | 315 | 254 | 266 | 371 | 462 | |||||||||||||||
| Net interest income after provision for loan losses | 9,261 | 9,285 | 9,241 | 8,352 | 7,591 | |||||||||||||||
| Total noninterest income | 5,781 | 4,568 | 3,254 | 2,567 | 2,906 | |||||||||||||||
| Total noninterest expense | 11,416 | 10,143 | 8,122 | 8,359 | 6,382 | |||||||||||||||
| Income before income taxes | 3,626 | 3,710 | 4,373 | 2,560 | 4,115 | |||||||||||||||
| Income tax expense | 522 | 766 | 696 | 338 | 622 | |||||||||||||||
| Net income | 3,104 | 2,944 | 3,677 | 2,222 | 3,493 | |||||||||||||||
| Less: net income attributable to noncontrolling interests | 173 | 200 | 571 | 576 | 87 | |||||||||||||||
| Net Income Attributable to the Company | $ | 2,931 | $ | 2,744 | $ | 3,106 | $ | 1,646 | $ | 3,406 | ||||||||||
| Basic Earnings Per Share | $ | 1.28 | $ | 1.20 | $ | 1.37 | $ | 0.73 | $ | 1.53 | ||||||||||
| Weighted Average Shares Outstanding – Basic | 2,284,665 | 2,277,709 | 2,274,951 | 2,251,425 | 2,228,256 | |||||||||||||||
| Diluted Earnings Per Share | $ | 1.24 | $ | 1.15 | $ | 1.31 | $ | 0.69 | $ | 1.44 | ||||||||||
| Weighted Average Shares Outstanding – Diluted | 2,371,480 | 2,379,520 | 2,378,839 | 2,370,260 | 2,358,935 | |||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Consolidated Performance Ratios (annualized) | 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| Return on average assets | 1.11 | % | 1.06 | % | 1.21 | % | 0.68 | % | 1.49 | % | ||||||||||
| Return on average equity | 11.82 | % | 11.16 | % | 13.02 | % | 6.83 | % | 14.58 | % | ||||||||||
| Return on average common stockholders’ equity | 11.82 | % | 11.16 | % | 13.02 | % | 6.83 | % | 14.58 | % | ||||||||||
| Net interest margin (tax equivalent) | 3.98 | % | 4.04 | % | 4.05 | % | 3.97 | % | 3.88 | % | ||||||||||
| Efficiency ratio | 74.34 | % | 71.90 | % | 63.65 | % | 74.04 | % | 58.24 | % | ||||||||||
| As of or for the Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Consolidated Asset Quality Ratios | 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| Nonperforming loans as a percentage of total loans | 0.62 | % | 0.60 | % | 0.50 | % | 0.41 | % | 0.47 | % | ||||||||||
| Nonperforming assets as a percentage of total assets | 1.28 | % | 1.31 | % | 1.25 | % | 1.24 | % | 1.38 | % | ||||||||||
| Allowance for loan losses as a percentage of total loans | 1.29 | % | 1.31 | % | 1.28 | % | 1.28 | % | 1.36 | % | ||||||||||
| Allowance for loan losses as a percentage of nonperforming loans | 208.77 | % | 218.18 | % | 255.12 | % | 309.39 | % | 286.47 | % | ||||||||||
| Net charge-offs (recoveries) to average outstanding loans | 0.00 | % | -0.01 | % | 0.01 | % | 0.00 | % | 0.01 | % | ||||||||||
| SUMMARIZED FINANCIAL INFORMATION (CONTINUED): | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Segmented Income Statement Information | 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| Noninterest income – Core Banking | $ | 1,380 | $ | 1,735 | $ | 1,508 | $ | 947 | $ | 1,287 | ||||||||||
| Noninterest income – SBA Lending (Q2) | 1,137 | 875 | 1,697 | 1,620 | 1,619 | |||||||||||||||
| Noninterest income – Mortgage Banking | 3,264 | 1,958 | 49 | – | – | |||||||||||||||
| Total noninterest income | $ | 5,781 | $ | 4,568 | $ | 3,254 | $ | 2,567 | $ | 2,906 | ||||||||||
| Noninterest expense – Core Banking | $ | 6,586 | $ | 6,771 | $ | 6,333 | $ | 7,288 | $ | 5,310 | ||||||||||
| Noninterest expense – SBA Lending (Q2) | 1,362 | 1,162 | 1,127 | 1,071 | 1,072 | |||||||||||||||
| Noninterest expense – Mortgage Banking | 3,468 | 2,210 | 662 | – | – | |||||||||||||||
| Total noninterest expense | $ | 11,416 | $ | 10,143 | $ | 8,122 | $ | 8,359 | $ | 6,382 | ||||||||||
| Income before income taxes – Core Banking | $ | 3,324 | $ | 3,453 | $ | 3,820 | $ | 1,385 | $ | 3,897 | ||||||||||
| Income before income taxes – SBA Lending (Q2) | 352 | 409 | 1,166 | 1,175 | 218 | |||||||||||||||
| Income (loss) before income taxes – Mortgage Banking | (50 | ) | (152 | ) | (613 | ) | – | – | ||||||||||||
| Total income before income taxes | $ | 3,626 | $ | 3,710 | $ | 4,373 | $ | 2,560 | $ | 4,115 | ||||||||||
| Income tax expense – Core Banking | $ | 490 | $ | 750 | $ | 702 | $ | 167 | $ | 590 | ||||||||||
| Income tax expense – SBA Lending (Q2) | 45 | 59 | 169 | 171 | 32 | |||||||||||||||
| Income tax expense (benefit) – Mortgage Banking | (13 | ) | (43 | ) | (175 | ) | – | – | ||||||||||||
| Total income tax expense | $ | 522 | $ | 766 | $ | 696 | $ | 338 | $ | 622 | ||||||||||
| Net income – Core Banking | $ | 2,834 | $ | 2,703 | $ | 3,118 | $ | 1,218 | $ | 3,307 | ||||||||||
| Net income – SBA Lending (Q2) | 307 | 350 | 997 | 1,004 | 186 | |||||||||||||||
| Net income (loss) – Mortgage Banking | (37 | ) | (109 | ) | (438 | ) | – | – | ||||||||||||
| Total net income | $ | 3,104 | $ | 2,944 | $ | 3,677 | $ | 2,222 | $ | 3,493 | ||||||||||
| Net income attributable to the Company – Core Banking | $ | 2,834 | $ | 2,703 | $ | 3,118 | $ | 1,218 | $ | 3,307 | ||||||||||
| Net income attributable to the Company – SBA Lending (Q2) | 134 | 150 | 426 | 428 | 99 | |||||||||||||||
| Net income (loss) attributable to the Company – Mortgage Banking | (37 | ) | (109 | ) | (438 | ) | – | – | ||||||||||||
| Total net income attributable to the Company | $ | 2,931 | $ | 2,744 | $ | 3,106 | $ | 1,646 | $ | 3,406 | ||||||||||
| Basic EPS – Core Banking | $ | 1.24 | $ | 1.18 | $ | 1.37 | $ | 0.54 | $ | 1.49 | ||||||||||
| Basic EPS – SBA Lending (Q2) | 0.06 | 0.07 | 0.19 | 0.19 | 0.04 | |||||||||||||||
| Basic EPS – Mortgage Banking | (0.02 | ) | (0.05 | ) | (0.19 | ) | 0.00 | 0.00 | ||||||||||||
| Total Basic EPS | $ | 1.28 | $ | 1.20 | $ | 1.37 | $ | 0.73 | $ | 1.53 | ||||||||||
| Diluted EPS – Core Banking | $ | 1.20 | $ | 1.14 | $ | 1.31 | $ | 0.51 | $ | 1.40 | ||||||||||
| Diluted EPS – SBA Lending (Q2) | 0.06 | 0.06 | 0.18 | 0.18 | 0.04 | |||||||||||||||
| Diluted EPS – Mortgage Banking | (0.02 | ) | (0.05 | ) | (0.18 | ) | – | – | ||||||||||||
| Total Diluted EPS | $ | 1.24 | $ | 1.15 | $ | 1.31 | $ | 0.69 | $ | 1.44 | ||||||||||
| As of or for the Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| SBA Lending (Q2) Data | 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| (In thousands, except percentage data) | ||||||||||||||||||||
| Final funded loans unguaranteed portion held for investment, SBA | $ | 3,436 | $ | 3,213 | $ | 4,302 | $ | 5,798 | $ | 5,208 | ||||||||||
| Final funded loans guaranteed portion sold, SBA | 12,943 | 12,109 | 17,631 | 19,741 | 18,326 | |||||||||||||||
| Total final funded loans, SBA | $ | 16,379 | $ | 15,322 | $ | 21,933 | $ | 25,539 | $ | 23,534 | ||||||||||
| Gross gain on sales of loans, SBA | $ | 1,203 | $ | 1,246 | $ | 2,025 | $ | 2,148 | $ | 2,159 | ||||||||||
| Weighted average gross gain on sales of loans, SBA | 9.29 | % | 10.29 | % | 11.49 | % | 10.88 | % | 11.78 | % | ||||||||||
| Net gain on sales of loans, SBA (2) | $ | 964 | $ | 907 | $ | 1,557 | $ | 1,489 | $ | 1,539 | ||||||||||
| Weighted average net gain on sales of loans, SBA | 7.45 | % | 7.49 | % | 8.83 | % | 7.54 | % | 8.40 | % | ||||||||||
| (2) Net of commissions, referral fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets | ||||||||||||||||||||
| SUMMARIZED FINANCIAL INFORMATION (CONTINUED): | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
| Summarized Consolidated Average Balance Sheets | 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||
| Average balances: | ||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 30,271 | $ | 26,716 | $ | 30,967 | $ | 28,318 | $ | 29,463 | ||||||||||
| Loans | 763,637 | 745,078 | 723,427 | 683,865 | 642,130 | |||||||||||||||
| Investment securities | 156,570 | 157,834 | 163,610 | 153,636 | 144,049 | |||||||||||||||
| Agency mortgage-backed securities | 29,133 | 37,393 | 42,624 | 35,421 | 35,759 | |||||||||||||||
| FRB and FHLB stock | 10,171 | 9,621 | 9,621 | 9,569 | 7,934 | |||||||||||||||
| Total interest-earning assets | $ | 989,782 | $ | 976,642 | $ | 970,249 | $ | 910,809 | $ | 859,335 | ||||||||||
| Interest income (taxable equivalent basis): | ||||||||||||||||||||
| Interest-bearing deposits with banks | $ | 153 | $ | 138 | $ | 112 | $ | 116 | $ | 71 | ||||||||||
| Loans | 9,828 | 9,349 | 8,885 | 8,192 | 7,702 | |||||||||||||||
| Investment securities | 1,783 | 1,822 | 2,123 | 1,765 | 1,624 | |||||||||||||||
| Agency mortgage-backed securities | 193 | 274 | 297 | 235 | 214 | |||||||||||||||
| FRB and FHLB stock | 121 | 119 | 107 | 149 | 90 | |||||||||||||||
| Total interest-earning assets | $ | 12,078 | $ | 11,702 | $ | 11,524 | $ | 10,457 | $ | 9,701 | ||||||||||
| Weighted average yield (tax equivalent basis, annualized): | ||||||||||||||||||||
| Interest-bearing deposits with banks | 2.02 | % | 2.07 | % | 1.45 | % | 1.64 | % | 0.96 | % | ||||||||||
| Loans | 5.15 | % | 5.02 | % | 4.91 | % | 4.79 | % | 4.80 | % | ||||||||||
| Investment securities | 4.56 | % | 4.62 | % | 5.19 | % | 4.60 | % | 4.51 | % | ||||||||||
| Agency mortgage-backed securities | 2.65 | % | 2.93 | % | 2.79 | % | 2.65 | % | 2.39 | % | ||||||||||
| FRB and FHLB stock | 4.76 | % | 4.95 | % | 4.45 | % | 6.23 | % | 4.54 | % | ||||||||||
| Total interest-earning assets | 4.88 | % | 4.79 | % | 4.75 | % | 4.59 | % | 4.52 | % | ||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||
| Average balances: | ||||||||||||||||||||
| Interest-bearing deposits | $ | 651,060 | $ | 664,526 | $ | 653,119 | $ | 581,861 | $ | 578,721 | ||||||||||
| Repurchase agreements | 1,352 | 1,351 | 1,350 | 1,349 | 1,348 | |||||||||||||||
| Borrowings from Federal Home Loan Bank | 104,999 | 99,614 | 111,036 | 149,680 | 129,280 | |||||||||||||||
| Other borrowings | 19,667 | 2,352 | – | – | – | |||||||||||||||
| Total interest-bearing liabilities | $ | 777,078 | $ | 767,843 | $ | 765,505 | $ | 732,890 | $ | 709,349 | ||||||||||
| Interest expense: | ||||||||||||||||||||
| Interest-bearing deposits | $ | 1,424 | $ | 1,389 | $ | 1,222 | $ | 807 | $ | 862 | ||||||||||
| Repurchase agreements | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
| Borrowings from Federal Home Loan Bank | 478 | 420 | 476 | 615 | 510 | |||||||||||||||
| Other borrowings | 322 | 33 | – | – | – | |||||||||||||||
| Total interest-bearing liabilities | $ | 2,225 | $ | 1,843 | $ | 1,699 | $ | 1,423 | $ | 1,373 | ||||||||||
| Weighted average cost (annualized): | ||||||||||||||||||||
| Interest-bearing deposits | 0.87 | % | 0.84 | % | 0.75 | % | 0.55 | % | 0.60 | % | ||||||||||
| Repurchase agreements | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | 0.30 | % | ||||||||||
| Borrowings from Federal Home Loan Bank | 1.82 | % | 1.69 | % | 1.71 | % | 1.64 | % | 1.58 | % | ||||||||||
| Other borrowings | 6.55 | % | 5.61 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||
| Total interest-bearing liabilities | 1.15 | % | 0.96 | % | 0.89 | % | 0.78 | % | 0.77 | % | ||||||||||
| Interest rate spread | 3.73 | % | 3.83 | % | 3.86 | % | 3.81 | % | 3.75 | % | ||||||||||
| Net interest margin | 3.98 | % | 4.04 | % | 4.05 | % | 3.97 | % | 3.88 | % | ||||||||||
