JEFFERSONVILLE, Ind., Oct. 29, 2025 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $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
812-283-072
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%
QTD FYTD
FINANCIAL CONDITION DATA: September 30, June 30, Increase September 30, 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%
(END) Dow Jones Newswires
October 29, 2025 17:30 ET (21:30 GMT)