First Savings Financial Group, Inc. Reports Financial Results for the Second Fiscal Quarter Ended March 31, 2021

JEFFERSONVILLE, Ind., April 26, 2021 (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 $10.5 million, or $4.39 per diluted share, for the quarter ended March 31, 2021 compared to a net loss of $627,000, or a net loss of $0.26 per diluted share, for the quarter ended March 31, 2020.

Commenting on the Company’s performance, Larry W. Myers, President and CEO stated: “We continued to be very pleased with the performance of our staff and the fundamentals of our organization, both of which continue to deliver meaningful value to our shareholders. We continue to experience strong earnings, loan and deposit growth; resiliency of asset quality; stability of the net interest margin; and substantial increases to stockholders’ equity. The core bank and ancillary business lines continue to perform exceptionally well despite recent market headwinds that are adversely affecting loan origination volumes. I continue to have confidence in the Company’s ability to thrive during challenging environments and I appreciate the dedication of our staff to ensure such.”

COVID-19 Pandemic Loan Information

We assisted customers that experienced COVID-19 pandemic related hardships by approving payment extensions or loan forbearance agreements, and by waiving or refunding certain fees. During the onset of the COVID-19 pandemic in early 2020, we proactively contacted all commercial borrowers and offered uniform payment extensions or loan forbearance agreements, while requests from consumer borrowers were reviewed and approved on a case-by-case basis. Payment extensions or loan forbearance agreements were generally for periods of three months and included deferment of both principal and interest. Following the expiration of the initial payment extensions or loan forbearance agreements, we entertained requests for extended periods on a case-by-case basis, which generally included deferment of only the principal portion of payments for a period of up to three months. The table below summarizes payment extensions or loan forbearance agreements that were in effect at April 19, 2021.

		Number of Loans	Outstanding Principal Balance
	(Dollars in thousands)
	Residential real estate	2	$	113
	Commercial real estate	3		9,889
	Commercial business	1		120
	SBA commercial real estate	1		1,117
	SBA commercial business	4		2,269
	Consumer	1		6
	Total	12	$	13,514

As a result of the COVID-19 pandemic, the leisure and hospitality industries carry a higher degree of credit risk. Based on our evaluation of the allowance for loan losses at March 31, 2021, management believes adequate reserves are in place to cover estimated losses at that date. However, as the pandemic continues, additional losses could be recognized and additional provisions for loan losses may be required.

At March 31, 2021, the outstanding principal balance of loans secured by restaurant related collateral was $168.6 million, of which $75.3 million is fully guaranteed by the SBA (including $74.9 million of PPP loans) and $82.2 million is secured by commercial real estate where the collateral property is leased to national-brand, investment-grade tenants. The commercial business loan included in the preceding table is secured by restaurant related collateral. None of the SBA commercial loans included in the preceding table are secured by restaurant related collateral.

At March 31, 2021, the outstanding principal balances of loans secured by hotel real estate was $17.6 million, of which $3.9 million is fully guaranteed by the SBA (including $878,000 of PPP loans). The three commercial real estate and the SBA commercial real estate loans included in the preceding table totaling $9.9 million and $1.1 million, respectively, are secured by hotel real estate.

Under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was signed into law on March 27, 2020, the SBA made six months of principal and interest payments for loans of existing SBA clients that were in “regular servicing status” (not delinquent) at March 27, 2020 and for loans of new SBA clients originated between March 27, 2020 and September 27, 2020. The CARES Act provided financial support for many of the SBA clients, which resulted in relatively few SBA clients requiring payment extensions or loan forbearance agreements. Following the expiration of the SBA-provided loan payments under the CARES Act for most of the SBA clients, the five SBA clients included in the preceding table, which operate in COVID-sensitive industries, were granted payment extensions or loan forbearance agreements. The Coronavirus Response and Relief Supplemental Appropriations Act (“CRRSAA”), which was signed into law on December 27, 2020, provides additional SBA-provided loan payments to eligible SBA clients beginning in February 2021, including the aforementioned five SBA clients following the expiration of their payment extensions or loan forbearance agreements.

The Company participated in the first round of the SBA’s Paycheck Protection Program (“PPP”), which was originally authorized by the CARES Act, and the second round of the PPP, which was authorized by the CRRSAA. At March 31, 2021, the outstanding principal balance of PPP loans was $159.3 million and net deferred loan fees related to PPP loans was approximately $2.1 million, which will be recognized over the life of the loans and as borrowers are granted forgiveness. As of March 31, 2021, the Company had processed and received forgiveness for 378 PPP loans totaling $49.2 million.

Results of Operations for the Three Months Ended March 31, 2021 and 2020

Net interest income increased $4.0 million, or 37.2%, to $14.8 million for the quarter ended March 31, 2021 as compared to the same quarter in 2020. The increase in net interest income was due to a $3.3 million increase in interest income and a $723,000 decrease in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $435.6 million, from $1.20 billion for 2020 to $1.64 billion for 2021, partially offset by a decrease in the weighted-average tax-equivalent yield, from 4.61% for 2020 to 4.19% for 2021. The decrease in the weighted-average tax-equivalent yield for 2021 is primarily due to lower market interest rates on loans and investment securities in 2021, as well as the Company’s participation in the PPP. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 1.13% for 2020 to 0.63% for 2021, partially offset by an increase in the average balance of interest-bearing liabilities of $328.4 million, from $984.2 million for 2020 to $1.31 billion for 2021. The decrease in the average cost of interest-bearing liabilities for 2021 was due primarily to decreasing market interest rates on deposits and Federal Home Loan Bank (“FHLB”) borrowings, as well as the Company’s participation in the Federal Reserve Bank’s PPP Liquidity Facility (“PPPLF”). PPPLF borrowings carry a fixed interest rate of 0.35% and are secured by the Company’s PPP loans.

The Company recognized $287,000 in provision for loan losses for the quarter ended March 31, 2021 compared to $1.7 million for 2020. The Company recognized net recoveries of $8,000 for the quarter ended March 31, 2021 compared to net charge-offs of $544,000 for 2020. The lower provision for loan losses in 2021 is primarily due to changes in qualitative factors within the allowance for losses calculation related to economic uncertainties surrounding COVID-19 made in 2020 and lesser net charge-offs in 2021.

Noninterest income increased $27.8 million for the quarter ended March 31, 2021 as compared to 2020. The increase was primarily due to increases in mortgage banking income of $24.0 million and net gains on sales of SBA loans of $2.0 million. The increase in mortgage banking income was due to production from the secondary-market residential mortgage lending segment. The increase in net gain on sales of SBA loans was primarily due to increases in production and sales volume from the SBA lending segment, as well as higher premiums in the secondary market. Additional details regarding the financial performance of the mortgage banking and SBA lending segments are included in the “Segmented Statements of Income Information” table at the end of this release.

Noninterest expense increased $17.2 million for the quarter ended March 31, 2021 as compared to 2020. The increase was primarily due to an increase in compensation and benefits of $14.6 million and an increase in professional fees of $1.1 million. The increase in compensation and benefits expense is attributable to the addition of new employees primarily to support the growth of the Company’s mortgage banking and SBA lending activities, routine salary and benefits adjustments, and increased incentive compensation primarily as a result of the performance of the Company’s mortgage banking segment. The increase in professional fees was primarily due to the mortgage banking segment and represented various outsourced services.

The Company recognized income tax expense of $3.7 million for the quarter ended March 31, 2021 compared to an income tax benefit of $774,000 for 2020. The tax benefit for 2020 was primarily the result of a pretax operating loss for the quarter. The effective tax rate for 2021 was 26.1%.

Results of Operations for the Six Months Ended March 31, 2021 and 2020

The Company reported net income of $20.4 million, or $8.55 per diluted share, for the six months ended March 31, 2021 compared to net income of $2.8 million, or $1.18 per diluted share, for the six months ended ended March 31, 2020, resulting in an increase of 625% on a per share basis.

Net interest income increased $7.0 million, or 32.3%, to $28.5 million for the six months ended March 31, 2021 as compared to the same period in 2020. The increase in net interest income was due to a $5.7 million increase in interest income and a $1.3 million decrease in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $447.8 million, from $1.18 billion for 2020 to $1.63 billion for 2021, partially offset by a decrease in the weighted-average tax-equivalent yield, from 4.74% for 2020 to 4.11% for 2021. The decrease in the weighted-average tax-equivalent yield for 2021 is primarily due to lower market interest rates on loans and investment securities in 2021, as well as the Company’s participation in the PPP. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 1.18% for 2020 to 0.66% for 2021, partially offset by an increase in the average balance of interest-bearing liabilities of $352.2 million, from $959.5 million for 2020 to $1.31 billion for 2021. The decrease in the average cost of interest-bearing liabilities for 2021 was due primarily to decreasing market interest rates on deposits and FHLB borrowings, as well as the Company’s participation in the PPPLF.

The Company recognized $955,000 in provision for loan losses for the six months ended March 31, 2021 compared to $2.2 million for the same period in 2020. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $2.2 million, from $13.6 million at September 30, 2020 to $11.4 million at March 31, 2021. The Company recognized net charge-offs of $562,000 for the six months ended March 31, 2021, of which $496,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $559,000 for the same period in 2020. The lower provision for loan losses in 2021 is primarily due to changes in qualitative factors within the allowance for losses calculation related to economic uncertainties surrounding COVID-19 made in 2020.

Noninterest income increased $55.8 million for the six months ended March 31, 2021 as compared to the same period in 2020. The increase was primarily due to increases in mortgage banking income of $50.4 million, net gains on sales of SBA loans of $2.5 million and other income of $2.5 million. The increase in mortgage banking income was due to production from the secondary-market residential mortgage lending segment. The increase in net gain on sales of SBA loans was primarily due to increases in production and sales volume from the SBA lending segment, as well as higher premiums in the secondary market. The increase in other income was primarily due to service fee income from the mortgage banking segment. Additional details regarding the financial performance of the mortgage banking and SBA lending segments are included in the “Segmented Statements of Income Information” table at the end of this release.

Noninterest expense increased $37.3 million for the six months ended March 31, 2021 as compared to the same period in 2020. The increase was primarily due to an increase in compensation and benefits of $30.6 million and an increase in other operating expense of $2.3 million. The increase in compensation and benefits expense is attributable to the addition of new employees primarily to support the growth of the Company’s mortgage banking and SBA lending activities, routine salary and benefits adjustments, and increased incentive compensation primarily as a result of the performance of the Company’s mortgage banking segment. The increase in other operating expense was primarily due to the mortgage banking segment.

The Company recognized income tax expense of $8.2 million for the six months ended March 31, 2021 compared to an income tax benefit of $136,000 for the same period in 2020. The tax benefit for 2020 was the result of the Company’s tax-exempt income and investments in tax credit bonds. The effective tax rate for 2021 was 28.3%.

Comparison of Financial Condition at March 31, 2021 and September 30, 2020

Total assets decreased $14.0 million, from $1.76 billion at September 30, 2020 to $1.75 billion at March 31, 2021. Net loans increased $38.3 million during the six months ended March 31, 2021, primarily due to continued growth in the single tenant net lease commercial real estate loan portfolio. Residential mortgage and SBA loans held for sale decreased by $73.0 million and $5.4 million, respectively, due to loan sales outpacing originations during the period. Total liabilities decreased $29.5 million primarily due to decreases of $46.3 million and $21.6 million in PPPLF and FHLB borrowings, respectively, partially offset by a $47.4 million increase in total deposits.

Common stockholders’ equity increased $15.7 million, from $157.3 million at September 30, 2020 to $173.0 million at March 31, 2021, due primarily to increases in retained net income of $19.6 million, partially offset by decreases in net unrealized gains on available for sale securities included in accumulated other comprehensive income of $2.0 million and additional paid in capital of $1.8 million, which was due to the acquisition of the minority interests in Q2 Business Capital, LLC on December 31, 2020. At March 31, 2021 and September 30, 2020, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank has fifteen offices in the Indiana communities of Clarksville, Jeffersonville, Charlestown, Sellersburg, New Albany, Georgetown, Corydon, Lanesville, Elizabeth, English, 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 the duration, extent and severity of the COVID-19 pandemic, including its effect on our customers, service providers and on the economy and financial markets in general, 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								Six Months Ended
	March 31,								March 31,
OPERATING DATA:		2021				2020				2021				2020
(In thousands, except share and per share data)
Total interest income	$	16,840			$	13,554			$	32,866			$	27,215
Total interest expense		2,060				2,783				4,347				5,658
Net interest income		14,780				10,771				28,519				21,557
Provision for loan losses		287				1,705				955				2,210
Net interest income after provision for loan losses		14,493				9,066				27,564				19,347
Total noninterest income		38,973				11,133				85,156				29,365
Total noninterest expense		39,284				22,075				83,686				46,347
Income (loss) before income taxes		14,182				(1,876	)			29,034				2,365
Income tax expense (benefit)		3,695				(774	)			8,222				(136	)
Net income (loss)		10,487				(1,102	)			20,812				2,501
Less: Net income (loss) attributable to noncontrolling interests		-				(475	)			402				(311	)
Net income (loss) attributable to the Company	$	10,487			$	(627	)		$	20,410			$	2,812
Net income (loss) per share, basic	$	4.43			$	(0.27	)		$	8.62			$	1.20
Weighted average shares outstanding, basic		2,369,642				2,355,750				2,368,338				2,348,145
Net income (loss) per share, diluted	$	4.39			$	(0.26	)		$	8.55			$	1.18
Weighted average shares outstanding, diluted		2,388,063				2,379,901				2,386,375				2,381,356
Performance ratios (three-month and six-month data annualized)
Return on average assets		2.34	%			(0.19	%)			2.29	%			0.44	%
Return on average equity		24.97	%			(3.51	%)			25.20	%			4.03	%
Return on average common stockholders' equity		24.97	%			(2.00	%)			24.75	%			4.54	%
Net interest margin (tax equivalent basis)		3.69	%			3.68	%			3.58	%			3.78	%
Efficiency ratio		73.08	%			100.78	%			73.62	%			91.02	%
	March 31,				September 30,				Increase
FINANCIAL CONDITION DATA:		2021				2020			(Decrease)
(In thousands, except per share data)
Total assets	$	1,750,609			$	1,764,625			$	(14,016	)
Cash and cash equivalents		30,837				33,726				(2,889	)
Investment securities		207,331				204,067				3,264
Loans held for sale		207,141				285,525				(78,384	)
Gross loans (1)		1,145,767				1,107,089				38,678
Allowance for loan losses		17,419				17,026				393
Interest earning assets		1,582,349				1,620,831				(38,482	)
Goodwill		9,848				9,848				-
Core deposit intangibles		1,095				1,202				(107	)
Loan servicing rights		49,367				25,451				23,916
Noninterest-bearing deposits		284,742				242,673				42,069
Interest-bearing deposits (2)		810,754				805,403				5,351
Federal Home Loan Bank borrowings		289,237				310,858				(21,621	)
Federal Reserve PPPLF borrowings		128,494				174,834				(46,340	)
Total liabilities		1,577,569				1,607,060				(29,491	)
Stockholders' equity, net of noncontrolling interests		173,040				157,272				15,768
Book value per share	$	72.86			$	66.21			$	6.65
Tangible book value per share (3)		68.25				61.56				6.69
Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	3,709			$	3,709			$	-
Nonaccrual loans - unguaranteed		7,697				9,906				(2,209	)
Total nonaccrual loans	$	11,406			$	13,615			$	(2,209	)
Accruing loans past due 90 days		-				-				-
Total non-performing loans		11,406				13,615				(2,209	)
Foreclosed real estate		315				-				315
Troubled debt restructurings classified as performing loans		2,019				3,069				(1,050	)
Total non-performing assets	$	13,740			$	16,684			$	(2,944	)
Asset quality ratios:
Allowance for loan losses as a percent of total gross loans		1.52	%			1.54	%			(0.02	%)
Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4)		1.77	%			1.84	%			(0.07	%)
Allowance for loan losses as a percent of nonperforming loans		152.72	%			125.05	%			27.66	%
Nonperforming loans as a percent of total gross loans		1.00	%			1.23	%			(0.23	%)
Nonperforming assets as a percent of total assets		0.78	%			0.95	%			(0.16	%)
(1) Includes $159.3 million and $180.6 million of PPP loans at March 31, 2021 and September 30, 2020, respectively.
(2) Includes $77.0 million and $132.1 million of brokered certificates of deposit at March 31, 2021 and September 30, 2020, respectively.
(3) See reconciliation of GAAP and Non-GAAP financial measures for additional information relating to calculation of this item.
(4) Denominator excludes PPP loans, which are fully guaranteed by the SBA. This ratio is non-GAAP, but is believed by management to be meaningful because it provides a comparable ratio
after eliminating PPP loans.
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.
	March 31,				September 30,				Increase
Tangible Book Value Per Share		2021				2020			(Decrease)
(In thousands, except share and per share data)
Stockholders' equity, net of noncontrolling interests (GAAP)	$	173,040			$	157,272			$	15,768
Less: goodwill and core deposit intangibles		(10,943	)			(11,050	)			107
Tangible equity (non-GAAP)	$	162,097			$	146,222			$	109,789
Outstanding common shares		2,375,027				2,375,324				(297	)
Tangible book value per share (non-GAAP)	$	68.25			$	61.56			$	6.69
Book value per share (GAAP)	$	72.86			$	66.21			$	6.65
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except per share data)		2021				2020				2020				2020				2020
Total cash and cash equivalents	$	30,837			$	35,392			$	33,726			$	27,544			$	22,603
Total investment securities		207,331				205,661				204,067				205,960				186,873
Total loans held for sale		207,141				357,242				285,525				210,077				163,927
Total loans, net of allowance for loan losses		1,128,348				1,114,708				1,090,063				1,081,381				877,276
PPP loans		159,320				178,499				180,561				180,536				-
Loan servicing rights		49,367				35,232				25,451				13,563				6,946
Total assets		1,750,609				1,872,911				1,764,625				1,661,281				1,368,252
Total deposits	$	1,095,496			$	1,121,320			$	1,048,076			$	982,870			$	937,306
Federal Home Loan Bank borrowings		289,237				340,092				310,858				298,622				270,000
Federal Reserve PPPLF borrowings		128,494				172,772				174,834				174,834				-
Stockholders' equity, net of noncontrolling interests	$	173,040			$	165,745			$	157,272			$	142,362			$	116,659
Noncontrolling interests in subsidiary		-				-				293				(214	)			(414	)
Total equity		173,040				165,745				157,565				142,148				116,245
Outstanding common shares		2,375,027				2,374,927				2,375,324				2,375,324				2,375,324
	Three Months Ended
Summarized Consolidated Statements of Income	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except per share data)		2021				2020				2020				2020				2020
Total interest income	$	16,840			$	16,026			$	15,765			$	14,719			$	13,554
Total interest expense		2,060				2,287				2,337				2,543				2,783
Net interest income		14,780				13,739				13,428				12,176				10,771
Provision for loan losses		287				668				2,772				2,980				1,705
Net interest income after provision for loan losses		14,493				13,071				10,656				9,196				9,066
Total noninterest income		38,973				46,183				57,024				46,962				11,133
Total noninterest expense		39,284				44,402				44,452				35,009				22,075
Income (loss) before income taxes		14,182				14,852				23,228				21,149				(1,876	)
Income tax expense (benefit)		3,695				4,527				7,257				5,540				(774	)
Net income (loss)		10,487				10,325				15,971				15,609				(1,102	)
Less: net income (loss) attributable to noncontrolling interests		-				402				834				204				(475	)
Net income (loss) attributable to the Company	$	10,487			$	9,923			$	15,137			$	15,405			$	(627	)
Net income (loss) per share, basic	$	4.43			$	4.19			$	6.40			$	6.51			$	(0.27	)
Weighted average shares outstanding, basic		2,369,642				2,367,061				2,365,217				2,365,217				2,355,750
Net income (loss) per share, diluted	$	4.39			$	4.16			$	6.39			$	6.51			$	(0.26	)
Weighted average shares outstanding, diluted		2,388,063				2,384,702				2,370,694				2,366,787				2,379,901
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
Consolidated Performance Ratios (Annualized)		2021				2020				2020				2020				2020
Return on average assets		2.34	%			2.23	%			3.44	%			4.02	%			(0.19	%)
Return on average equity		24.97	%			25.43	%			43.46	%			48.75	%			(3.51	%)
Return on average common stockholders' equity		24.97	%			24.52	%			41.08	%			47.91	%			(2.00	%)
Net interest margin (tax equivalent basis)		3.69	%			3.46	%			3.40	%			3.52	%			3.68	%
Efficiency ratio		73.08	%			74.10	%			63.10	%			59.20	%			100.78	%
	As of or for the Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
Consolidated Asset Quality Ratios		2021				2020				2020				2020				2020
Nonperforming loans as a percentage of total loans		1.00	%			1.10	%			1.23	%			1.26	%			1.55	%
Nonperforming assets as a percentage of total assets		0.78	%			0.78	%			0.95	%			1.17	%			1.45	%
Allowance for loan losses as a percentage of total loans		1.52	%			1.51	%			1.54	%			1.34	%			1.32	%
Allowance for loan losses as a percentage of nonperforming loans		152.72	%			138.02	%			125.05	%			106.01	%			84.67	%
Net charge-offs (recoveries) to average outstanding loans		0.00	%			0.04	%			0.03	%			0.00	%			0.06	%
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except per share data)		2021				2020				2020				2020				2020
Core Banking Segment:
Net interest income	$	11,114			$	10,861			$	10,512			$	9,645			$	9,035
Provision for loan losses		106				702				2,232				1,668				216
Net interest income after provision for loan losses		11,008				10,159				8,280				7,977				8,819
Noninterest income		1,490				1,552				1,779				1,324				1,411
Noninterest expense		8,991				8,112				7,920				7,633				6,720
Income before income taxes		3,507				3,599				2,139				1,668				3,510
Income tax expense		507				570				482				276				591
Net income attributable to the Company	$	3,000			$	3,029			$	1,657			$	1,392			$	2,919
SBA Lending Segment (Q2):
Net interest income (5)	$	3,227			$	2,147			$	1,959			$	1,584			$	1,151
Provision (credit) for loan losses		181				(34	)			540				1,312				1,489
Net interest income (loss) after provision for loan losses		3,046				2,181				1,419				272				(338	)
Noninterest income		3,407				1,385				2,828				1,785				1,209
Noninterest expense		2,449				2,746				2,545				1,642				1,841
Income (loss) before income taxes		4,004				820				1,702				415				(970	)
Income tax expense (benefit)		1,005				105				217				53				(124	)
Net income (loss)		2,999				715				1,485				362				(846	)
Less: net income (loss) attributable to noncontrolling interests		-				402				834				204				(475	)
Net income (loss) attributable to the Company (6)	$	2,999			$	313			$	651			$	158			$	(371	)
Mortgage Banking Segment:
Net interest income	$	439			$	731			$	957			$	947			$	585
Provision for loan losses		-				-				-				-				-
Net interest income after provision for loan losses		439				731				957				947				585
Noninterest income		34,076				43,246				52,417				43,853				8,513
Noninterest expense		27,844				33,544				33,987				25,734				13,514
Income (loss) before income taxes		6,671				10,433				19,387				19,066				(4,416	)
Income tax expense (benefit)		2,183				3,852				6,558				5,211				(1,241	)
Net income (loss) attributable to the Company	$	4,488			$	6,581			$	12,829			$	13,855			$	(3,175	)
Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking	$	1.27			$	1.28			$	0.70			$	0.59			$	1.24
Net income (loss) per share, basic - SBA Lending (Q2) (7)		1.27				0.13				0.28				0.07				(0.16	)
Net income (loss) per share, basic - Mortgage Banking		1.89				2.78				5.42				5.85				(1.35	)
Total net income (loss) per share, basic (7)	$	4.43			$	4.19			$	6.40			$	6.51			$	(0.27	)
Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	1.26			$	1.27			$	0.70			$	0.59			$	1.23
Net income (loss) per share, diluted - SBA Lending (Q2) (8)		1.26				0.13				0.27				0.07				(0.16	)
Net income (loss) per share, diluted - Mortgage Banking		1.87				2.76				5.42				5.85				(1.33	)
Total net income (loss) per share, diluted (8)	$	4.39			$	4.16			$	6.39			$	6.51			$	(0.26	)
(5) Includes net interest income derived from PPP loans of:		1,887				928				861				571				-
(6) Includes net income attributable to the Company derived from PPP loans (tax effected) of:		1,415				810				751				498				-
(7) Includes basic net income per share derived from PPP loans (tax effected) of:		0.60				0.34				0.32				0.21				-
(8) Includes diluted net income per share derived from PPP loans (tax effected) of:		0.59				0.34				0.32				0.21				-
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Expense Detail by Segment	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands)		2021				2020				2020				2020				2020
Core Banking Segment:
Compensation	$	4,895			$	4,127			$	4,250			$	4,219			$	3,535
Occupancy		1,387				1,392				1,512				1,239				1,133
Advertising		248				177				225				195				151
Other		2,461				2,416				1,933				1,980				1,901
Total Noninterest Expense	$	8,991			$	8,112			$	7,920			$	7,633			$	6,720
SBA Lending Segment (Q2):
Compensation	$	1,929			$	2,280			$	1,939			$	1,314			$	1,569
Occupancy		129				93				116				118				99
Advertising		8				10				6				-				9
Other		383				363				484				210				164
Total Noninterest Expense	$	2,449			$	2,746			$	2,545			$	1,642			$	1,841
Mortgage Banking Segment:
Compensation	$	22,657			$	27,455			$	27,092			$	21,363			$	9,803
Occupancy		998				1,100				1,207				855				757
Advertising		1,796				2,124				2,011				1,666				1,617
Other		2,393				2,865				3,677				1,850				1,337
Total Noninterest Expense	$	27,844			$	33,544			$	33,987			$	25,734			$	13,514
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
	March 31,				December 31,				September 30,				June 30,				March 31,
Mortgage Banking Noninterest Expense Fixed vs. Variable		2021				2020				2020				2020				2020
(In thousands)
Noninterest Expense - Fixed Expenses	$	11,713			$	13,296			$	11,838			$	8,394			$	6,740
Noninterest Expense - Variable Expenses (9)		16,131				20,248				22,149				17,340				6,774
Total Noninterest Expense	$	27,844			$	33,544			$	33,987			$	25,734			$	13,514
	Three Months Ended
SBA Lending (Q2) Data	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except percentage data)		2021				2020				2020				2020				2020
Final funded loans guaranteed portion sold, SBA	$	29,883			$	14,116			$	25,623			$	16,605			$	16,180
Gross gain on sales of loans, SBA	$	3,858			$	1,698			$	3,094			$	1,771			$	1,597
Weighted average gross gain on sales of loans, SBA		12.91	%			12.03	%			12.08	%			10.67	%			9.87	%
Net gain on sales of loans, SBA (10)	$	3,239			$	1,267			$	2,366			$	1,317			$	1,229
Weighted average net gain on sales of loans, SBA		10.84	%			8.98	%			9.23	%			7.93	%			7.60	%
	Three Months Ended
Mortgage Banking Data	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except percentage data)		2021				2020				2020				2020				2020
Mortgage originations for sale in the secondary market	$	1,344,873			$	1,430,628			$	1,526,809			$	1,003,518			$	532,996
Mortgage sales	$	1,476,198			$	1,349,044			$	1,471,501			$	954,568			$	488,457
Gross gain on sales of loans, mortgage banking	$	27,606			$	47,224			$	53,633			$	31,067			$	14,912
Weighted average gross gain on sales of loans, mortgage banking		1.87	%			3.50	%			3.64	%			3.25	%			3.05	%
Mortgage banking income (11)	$	32,398			$	42,300			$	52,035			$	43,713			$	8,411
(9) Variable expenses include incentive compensation and advertising expenses.
(10) Net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets.
(11) Net of lender credits and other investor expenses, and inclusive of loan fees, gains on mortgage servicing rights, fair value adjustments and gains (losses) on derivative instruments.
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Average Balance Sheets	March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands)		2021				2020				2020				2020				2020
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	48,035			$	34,412			$	58,775			$	25,985			$	48,306
Loans, excluding PPP		1,217,398				1,205,278				1,172,547				1,076,376				970,083
PPP loans		164,533				179,316				180,561				114,721				-
Investment securities - taxable		42,424				42,462				44,026				43,569				46,216
Investment securities - nontaxable		146,145				146,374				145,042				143,702				122,770
FRB and FHLB stock		19,294				17,992				17,293				16,804				14,878
Total interest-earning assets	$	1,637,829			$	1,625,834			$	1,618,244			$	1,421,157			$	1,202,253
Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	18			$	18			$	22			$	37			$	153
Loans, excluding PPP		13,033				13,171				12,924				12,164				11,736
PPP loans		2,031				1,085				1,019				671				-
Investment securities - taxable		432				471				483				502				504
Investment securities - nontaxable		1,487				1,508				1,507				1,514				1,300
FRB and FHLB stock		167				108				144				168				151
Total interest income (tax equivalent basis)	$	17,168			$	16,361			$	16,099			$	15,056			$	13,844
Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		0.15	%			0.21	%			0.15	%			0.57	%			1.27	%
Loans, excluding PPP		4.28	%			4.37	%			4.41	%			4.52	%			4.84	%
PPP loans		4.94	%			2.42	%			2.26	%			2.34	%			0.00	%
Investment securities - taxable		4.07	%			4.44	%			4.39	%			4.61	%			4.36	%
Investment securities - nontaxable		4.07	%			4.12	%			4.16	%			4.21	%			4.24	%
FRB and FHLB stock		3.46	%			2.40	%			3.33	%			4.00	%			4.06	%
Total interest-earning assets		4.19	%			4.03	%			3.98	%			4.24	%			4.61	%
Interest-bearing liabilities
Average balances:
Interest-bearing deposits	$	840,556			$	811,016			$	842,363			$	770,402			$	716,051
Fed funds purchased		-				-				-				1,978				143
Federal Home Loan Bank borrowings		293,819				306,299				292,876				292,168				248,205
Federal Reserve PPPLF borrowings		158,354				173,701				174,835				74,218				-
Subordinated debt and other borrowings		19,786				19,803				19,786				19,769				19,752
Total interest-bearing liabilities	$	1,312,515			$	1,310,819			$	1,329,860			$	1,158,535			$	984,151
Interest expense:
Interest-bearing deposits	$	771			$	936			$	974			$	1,311			$	1,625
Fed funds purchased		-				-				-				2				-
Federal Home Loan Bank borrowings		833				861				853				846				838
Federal Reserve PPPLF borrowings		137				153				154				66				-
Subordinated debt and other borrowings		319				337				356				318				320
Total interest expense	$	2,060			$	2,287			$	2,337			$	2,543			$	2,783
Weighted average cost (annualized):
Interest-bearing deposits		0.37	%			0.46	%			0.46	%			0.68	%			0.91	%
Repurchase agreements		0.00	%			0.00	%			0.00	%			0.00	%			0.00	%
Fed funds purchased		0.00	%			0.00	%			0.00	%			0.40	%			0.00	%
Federal Home Loan Bank borrowings		1.13	%			1.12	%			1.16	%			1.16	%			1.35	%
Federal Reserve PPPLF borrowings		0.35	%			0.35	%			0.35	%			0.36	%			0.00	%
Subordinated debt and other borrowings		6.45	%			6.81	%			7.20	%			6.43	%			6.48	%
Total interest-bearing liabilities		0.63	%			0.70	%			0.70	%			0.88	%			1.13	%
Interest rate spread (tax equivalent basis, annualized)		3.56	%			3.33	%			3.28	%			3.36	%			3.48	%
Net interest margin (tax equivalent basis, annualized)		3.69	%			3.46	%			3.40	%			3.52	%			3.68	%
Net interest margin, excluding PPP and PPPLF (non-GAAP), (tax equivalent basis, annualized)		3.59	%			3.63	%			3.59	%			3.65	%			3.68	%