First Savings Financial Group, Inc. Reports Financial Results for the Second Fiscal Quarter Ended March 31, 2025

/EIN News/ -- JEFFERSONVILLE, Ind., April 24, 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 $5.5 million, or $0.79 per diluted share, for the quarter ended March 31, 2025, compared to net income of $4.9 million, or $0.72 per diluted share, for the quarter ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $5.3 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.76 (non-GAAP measure)⁽¹⁾ for the quarter ended March 31, 2025 compared to $3.6 million, or $0.52 per diluted share for the quarter ended March 31, 2024.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the second fiscal quarter performance, including the continued improvement in the net interest margin, which has increased eighteen and twenty-one basis points for the three and six months ended, respectively. The SBA Lending segment posted its first profitable quarter since March 2024 and posted a solid level of loans originations and sales. Asset quality improved with nonperforming loans decreasing $3.8 million from the prior quarter and the ratio of nonperforming loans to total gross loans improving to 0.67%, a decrease of twenty basis points from the prior quarter. We are optimistic regarding the remainder of fiscal 2025 as we anticipate further expansion of the net interest margin, continued profitability from the SBA Lending segment, additional sales of home equity lines of credit (“HELOCS”), and stable and strong asset quality. We will continue our focus on customer deposit growth, select loan growth opportunities, preservation of asset quality, and prudent capital and liquidity management. We will also continue to evaluate options and strategies that we believe will maximize shareholder value.”

^{(1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.}

Results of Operations for the Three Months Ended March 31, 2025 and 2024

Net interest income increased $1.7 million, or 11.6%, to $16.0 million for the three months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended March 31, 2025 was 2.93% as compared to 2.66% for the same period in 2024. The increase in net interest income was due to an increase of $807,000 in interest income and a decrease of $846,000 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 reversal of provision for credit losses for loans and securities of $357,000 and $1,000, respectively, and a provision for unfunded lending commitments of $123,000 for the three months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $713,000 and $23,000, respectively, and reversal of provision for unfunded lending commitments of $259,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to a decrease in qualitative reserves and $156,000 in net recoveries recognized during the period. The $156,000 in net recoveries during the three months ended March 31, 2025 included $215,000 in net recoveries related to unguaranteed portions of SBA loans. During the three months ended March 31, 2024, the Company recognized net charge-offs of $110,000, of which $15,000 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 $4.2 million from $16.9 million at September 30, 2024 to $12.7 million at March 31, 2025, due primary to a $4.9 million decrease in loan balances guaranteed by the SBA.

Noninterest income decreased $150,000 for the three months ended March 31, 2025 as compared to the same period in 2024. The decrease was due primarily to a $539,000 decrease in other income, partially offset by a $154,000 increase in service charges on deposit accounts and a $127,000 increase in net gain on sales of SBA loans. The decrease in other income in 2025 was primarily due to $492,000 gain on the sale of mortgage servicing rights during the 2024 period with no corresponding amount for 2025.

Noninterest expense increased $1.9 million for the three months ended March 31, 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 $940,000 and $948,000, respectively. The increase in compensation and benefits was primarily due to an increase in bonus and incentive accruals in 2025. The increase in other operating expenses was primarily due a $656,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period compared to a reversal of $41,000 for the same period in 2025 and an adjustment to the valuation allowance related to the sale of residential mortgage servicing rights of $247,000 in 2024 with no corresponding amount in 2025.

The Company recognized income tax expense of $589,000 for the three months ended March 31, 2025 compared to $866,000 for the same period in 2024. The decrease is due primarily to greater utilization of investment tax credits in the 2025 period. The effective tax rate for 2025 was 9.7% compared to 14.9% for 2024. The effective tax rate is well 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 Six Months Ended March 31, 2025 and 2024

The Company reported net income of $11.7 million, or $1.68 per diluted share, for the six months ended March 31, 2025 compared to net income of $5.8 million, or $0.85 per diluted share, for the six months ended March 31, 2024. Excluding nonrecurring items, the Company reported net income of $9.4 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $1.35 (non-GAAP measure)⁽¹⁾ for the six months ended March 31, 2025 compared to net income of $4.5 million and net income per diluted share of $0.66 for the six months ended March 31, 2024. The core banking segment reported net income of $11.4 million, or $1.64 per diluted share for the six months ended March 31, 2025 compared to net income of $8.6 million and net income per diluted share of $1.25 for the six months ended March 31, 2024. Excluding nonrecurring items, the core banking segment reported net income of $9.1 million (non-GAAP measure)⁽¹⁾, or $1.31 per diluted share (non-GAAP measure)⁽¹⁾ for the six months ended March 31, 2025 compared to net income of $7.7 million and net income per diluted share of $1.12 for the six months ended March 31, 2024.

Net interest income increased $3.0 million, or 10.6%, to $31.5 million for the six months ended March 31, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the six months ended March 31, 2025 was 2.84% as compared to 2.68% for the same period in 2024. The increase in net interest income was due to a $4.6 million increase in interest income, partially offset by a $1.6 million increase 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 reversal of provision for credit losses for loans and securities of $848,000 and $7,000, respectively, and a provision for unfunded lending commitments of $169,000 for the six months ended March 31, 2025, compared to a provision for credit losses for loans and securities of $1.2 million and $23,000, respectively, and reversal of provision for unfunded lending commitments of $317,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of HELOCS during the period and a decrease in qualitative reserves. The Company recognized net recoveries totaling $38,000 for the six months ended March 31, 2025, of which $164,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $119,000 in 2024, of which $64,000 was related to unguaranteed portions of SBA loans.

Noninterest income increased $3.2 million for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to a $2.5 million net gain on sale of HELOCs in 2025, net gains of $403,000 on the sale of equity securities in 2025 with no corresponding gains for 2024, a $248,000 increase in service charges on deposit accounts, and a $263,000 increase in ATM and interchange fees, slightly offset by a $508,000 decrease in other income due to a $495,000 gain recognized on the sale of mortgage servicing rights during 2024 with no corresponding amount for 2025.

Noninterest expense increased $824,000 for the six months ended March 31, 2025 as compared to the same period in 2024. The increase was due primarily to increases in other operating expenses and compensation and benefits of $962,000 and $453,000, respectively, partially offset by decreases in professional fees and occupancy and equipment of $454,000 and $380,000, respectively. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in 2024 compared to a reversal of $148,000 in 2025 and a $400,000 accrued contingent liability associated with employee benefits recognized in 2025 with no corresponding amount in 2024, partially offset by a decrease of $180,000 in 2025 to reverse previously accrued litigation expenses. The increase in compensation and benefits is primarily due to an increase in bonus and incentive accruals in 2025 compared to 2024. The decrease in professional fees and occupancy and equipment is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $1.4 million for the six months ended March 31, 2025 compared to $390,000 for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period, including the aforementioned net gain on sale of loans. The effective tax rate for 2025 was 10.9% compared to 6.3%. The effective tax rate is well 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 March 31, 2025 and September 30, 2024

Total assets decreased $74.1 million, from $2.45 billion at September 30, 2024 to $2.38 billion at March 31, 2025. Net loans held for investment decreased $83.7 million during the six months ended March 31, 2025 due primarily to the $87.2 million bulk sale of home equity lines of credit.

Total liabilities decreased $76.2 million due primarily to a decrease in total deposits of $91.7 million, partially offset by an increase in FHLB borrowings of $23.7 million. The decrease in total deposits was due to a decrease in brokered deposits of $112.4 million, due primarily to proceeds from the aforementioned bulk sale of home equity lines of credit and an increase in customer deposits of $20.7 million. As of March 31, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 31.8% of total deposits and 15.1% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Total stockholders’ equity increased $2.1 million, from $177.1 million at September 30, 2024 to $179.2 million at March 31, 2025, due primarily to a $9.6 million increase in retained net income, partially offset by a $8.2 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 six months ended March 31, 2025, which resulted in a decrease in the fair value of securities available for sale. At March 31, 2025 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

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

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

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

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

Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724

FIRST SAVINGS FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
		Three Months Ended								Six Months Ended
OPERATING DATA:		March 31,								March 31,
(In thousands, except share and per share data)			2025				2024				2025				2024
Total interest income		$	30,823			$	30,016			$	63,272			$	58,671
Total interest expense			14,832				15,678				31,819				30,220
Net interest income			15,991				14,338				31,453				28,451
Provision (credit) for credit losses - loans			(357	)			713				(848	)			1,183
Provision (credit) for unfunded lending commitments			123				(259	)			169				(317	)
Provision (credit) for credit losses - securities			(1	)			23				(7	)			23
Total provision (credit) for credit losses			(235	)			477				(686	)			889
Net interest income after provision (credit) for credit losses			16,226				13,861				32,139				27,562
Total noninterest income			3,560				3,710				9,663				6,492
Total noninterest expense			13,698				11,778				28,641				27,817
Income before income taxes			6,088				5,793				13,161				6,237
Income tax expense			589				866				1,437				390
Net income		$	5,499			$	4,927			$	11,724			$	5,847
Net income per share, basic		$	0.80			$	0.72			$	1.71			$	0.86
Weighted average shares outstanding, basic			6,875,826				6,832,130				6,861,061				6,828,017
Net income per share, diluted		$	0.79			$	0.72			$	1.68			$	0.85
Weighted average shares outstanding, diluted			6,960,020				6,859,611				6,961,829				6,849,928
Performance ratios (annualized)
Return on average assets			0.93	%			0.84	%			0.98	%			0.50	%
Return on average equity			12.24	%			11.96	%			13.15	%			7.38	%
Return on average common stockholders' equity			12.34	%			11.96	%			13.15	%			7.38	%
Net interest margin (tax equivalent basis)			2.93	%			2.66	%			2.84	%			2.68	%
Efficiency ratio			70.06	%			65.26	%			69.66	%			79.61	%
										QTD								FYTD
FINANCIAL CONDITION DATA:		March 31,				December 31,				Increase				September 30,				Increase
(In thousands, except per share data)			2025				2024			(Decrease)					2024			(Decrease)
Total assets		$	2,376,230			$	2,388,735			$	(12,505	)		$	2,450,368			$	(74,138	)
Cash and cash equivalents			28,683				76,224				(47,541	)			52,142				(23,459	)
Investment securities			244,084				242,634				1,450				249,719				(5,635	)
Loans held for sale			61,239				24,441				36,798				25,716				35,523
Gross loans			1,900,660				1,905,199				(4,539	)			1,985,146				(84,486	)
Allowance for credit losses			20,484				20,685				(201	)			21,294				(810	)
Interest earning assets			2,219,504				2,234,258				(14,754	)			2,277,512				(58,008	)
Goodwill			9,848				9,848				-				9,848				-
Core deposit intangibles			316				357				(41	)			398				(82	)
Loan servicing rights			2,744				2,661				83				2,754				(10	)
Noninterest-bearing deposits			185,252				183,239				2,013				191,528				(6,276	)
Interest-bearing deposits (customer)			1,207,159				1,212,527				(5,368	)			1,180,196				26,963
Interest-bearing deposits (brokered)			396,770				437,008				(40,238	)			509,157				(112,387	)
Federal Home Loan Bank borrowings			325,310				295,000				30,310				301,640				23,670
Subordinated debt and other borrowings			48,682				48,642				40				48,603				79
Total liabilities			2,197,041				2,212,708				(15,667	)			2,273,253				(76,212	)
Accumulated other comprehensive loss			(19,385	)			(17,789	)			(1,596	)			(11,195	)			(8,190	)
Total stockholders' equity			179,189				176,027				3,162				177,115				2,074
Book value per share		$	25.90			$	25.48				0.42			$	25.72				0.18
Tangible book value per share (non-GAAP) (1)			24.43				24.00				0.43				24.23				0.20
Non-performing assets:
Nonaccrual loans - SBA guaranteed		$	123			$	4,444			$	(4,321	)		$	5,036			$	(4,913	)
Nonaccrual loans			12,597				12,124				473				11,906				691
Total nonaccrual loans		$	12,720			$	16,568			$	(3,848	)		$	16,942			$	(4,222	)
Accruing loans past due 90 days			-				-				-				-				-
Total non-performing loans			12,720				16,568				(3,848	)			16,942				(4,222	)
Foreclosed real estate			444				444				-				444				-
Total non-performing assets		$	13,164			$	17,012			$	(3,848	)		$	17,386			$	(4,222	)
Asset quality ratios:
Allowance for credit losses as a percent of total gross loans			1.08	%			1.09	%			(0.01	%)			1.07	%			0.01	%
Allowance for credit losses as a percent of nonperforming loans			161.04	%			124.85	%			36.19	%			125.69	%			35.35	%
Nonperforming loans as a percent of total gross loans			0.67	%			0.87	%			(0.20	%)			0.85	%			(0.18	%)
Nonperforming assets as a percent of total assets			0.55	%			0.71	%			(0.16	%)			0.71	%			(0.16	%)
(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								Six Months Ended
Net Income		March 31,								March 31,
(In thousands)			2025				2024				2025				2024
Net income attributable to the Company (non-GAAP)		$	5,313			$	3,561			$	9,367			$	4,481
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect			-				-				1,869				-
Plus: Gain on sale of equity securities, net of tax effect			-				-				302				-
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect			-				492				-				492
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect			-				583				-				583
Plus: Gain on sale of premises and equipment, net of tax effect			186				90				186				90
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect			-				117				-				117
Plus: Distribution from equity investment, net of tax effect			-				85				-				85
Net income attributable to the Company (GAAP)		$	5,499			$	4,927			$	11,724			$	5,847
Net Income per Share, Diluted
Net income per share attributable to the Company, diluted (non-GAAP)		$	0.76			$	0.52			$	1.35			$	0.65
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect			-				-				0.27				-
Plus: Gain on sale of equity securities, net of tax effect			-				-				0.03				-
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect			-				0.07				-				0.07
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect			-				0.08				-				0.08
Plus: Gain on sale of premises and equipment, net of tax effect			0.03				0.01				0.03				0.01
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect			-				0.02				-				0.02
Plus: Distribution from equity investment, net of tax effect			-				0.02				-				0.02
Net income per share, diluted (GAAP)		$	0.79			$	0.72			$	1.68			$	0.85
Core Bank Segment Net Income
(In thousands)
Net income attributable to the Core Bank (non-GAAP)		$	4,883			$	3,637			$	9,081			$	7,685
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect			-				-				1,869				-
Plus: Gain on sale of equity securities, net of tax effect			-				-				302				-
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect			-				583				-				583
Plus: Gain on sale of premises and equipment, net of tax effect			186				90				186				90
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect			-				117				-				117
Plus: Distribution from equity investment, net of tax effect			-				85				-				85
Net income attributable to the Core Bank (GAAP)		$	5,069			$	4,511			$	11,438			$	8,559
Core Bank Segment Net Income per Share, Diluted
Core Bank net income per share, diluted (non-GAAP)		$	0.70			$	0.53			$	1.31			$	1.12
Plus: Gain on sale of loans, home equity lines of credit, net of tax effect			-				-				0.27				-
Plus: Gain on sale of equity securities, net of tax effect			-				-				0.03				-
Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect			-				0.08				-				0.08
Plus: Gain on sale of premises and equipment, net of tax effect			-				0.01				0.03				0.01
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect			0.03				0.02				-				0.02
Plus: Distribution from equity investment, net of tax effect			-				0.02				-				0.02
Core Bank net income per share, diluted (GAAP)		$	0.73			$	0.66			$	1.64			$	1.25
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):		Three Months Ended								Fiscal Year Ended
Efficiency Ratio		March 31,								March 31,
(In thousands)			2025				2024				2025				2024
Net interest income (GAAP)		$	15,991			$	14,338			$	31,453			$	28,451
Noninterest income (GAAP)			3,560				3,710				9,663				6,492
Noninterest expense (GAAP)			13,698				11,778				28,641				27,817
Efficiency ratio (GAAP)			70.06	%			65.26	%			69.66	%			79.61	%
Noninterest income (GAAP)		$	3,560			$	3,710			$	9,663			$	6,492
Less: Gain on sale of loans, home equity lines of credit			-				-				(2,492	)			-
Less: Gain on sale of equity securities			-				-				(403	)			-
Less: Gain on sale of premises and equipment			(248	)			(120	)			(248	)			(120	)
Less: Adjustment to MSR valuation allowance related to sale			-				(530	)			-				(530	)
Less: Distribution from equity investment			-				(113	)			-				(113	)
Noninterest income (Non-GAAP)			3,312				2,947				6,520				5,729
Noninterest expense (GAAP)		$	13,698			$	11,778			$	28,641			$	27,817
Plus: Adjustment to MSR valuation allowance related to sale			-				247				-				247
Plus: Decrease in loss contingency for SBA-guaranteed loans			-				656				-				656
Plus: Adjustment to previous data processing contract termination accrual			-				156				-				156
Noninterest expense (Non-GAAP)		$	13,698			$	12,837			$	28,641			$	28,876
Efficiency ratio (excluding nonrecurring items) (non-GAAP)			70.96	%			74.27	%			75.42	%			84.48	%
										QTD								FYTD
Tangible Book Value Per Share		March 31,				December 31,				Increase				September 30,				Increase
(In thousands, except share and per share data)			2025				2024			(Decrease)					2024			(Decrease)
Stockholders' equity (GAAP)		$	179,189			$	176,027			$	3,162			$	177,115			$	2,074
Less: goodwill and core deposit intangibles			(10,164	)			(10,205	)			41				(10,246	)			82
Tangible stockholders' equity (non-GAAP)		$	169,025			$	165,822			$	3,203			$	166,869			$	2,156
Outstanding common shares			6,919,136				6,909,173			$	9,963				6,887,106			$	32,030
Tangible book value per share (non-GAAP)		$	24.43			$	24.00			$	0.43			$	24.23			$	0.20
Book value per share (GAAP)		$	25.90			$	25.48			$	0.42			$	25.72			$	0.18
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)			2025				2024				2024				2024				2024
Total cash and cash equivalents		$	28,683			$	76,224			$	52,142			$	42,423			$	62,969
Total investment securities			244,084				242,634				249,719				238,785				240,142
Total loans held for sale			61,239				24,441				25,716				125,859				19,108
Total loans, net of allowance for credit losses			1,880,176				1,884,514				1,963,852				1,826,980				1,882,458
Loan servicing rights			2,744				2,661				2,754				2,860				3,028
Total assets			2,376,230				2,388,735				2,450,368				2,393,491				2,364,983
Customer deposits		$	1,392,411			$	1,395,766			$	1,371,724			$	1,312,997			$	1,239,271
Brokered deposits			396,770				437,008				509,157				399,151				548,175
Total deposits			1,789,181				1,832,774				1,880,881				1,712,148				1,787,446
Federal Home Loan Bank borrowings			325,310				295,000				301,640				425,000				315,000
Common stock and additional paid-in capital		$	28,650			$	28,382			$	27,725			$	27,592			$	27,475
Retained earnings - substantially restricted			182,918				178,526				173,337				170,688				167,648
Accumulated other comprehensive loss			(19,385	)			(17,789	)			(11,195	)			(17,415	)			(17,144	)
Unearned stock compensation			(862	)			(973	)			(901	)			(999	)			(1,096	)
Less treasury stock, at cost			(12,132	)			(12,119	)			(11,851	)			(11,866	)			(11,827	)
Total stockholders' equity			179,189				176,027				177,115				168,000				165,056
Outstanding common shares			6,919,136				6,909,173				6,887,106				6,883,656				6,883,160
		Three Months Ended
Summarized Consolidated Statements of Income		March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except per share data)			2025				2024				2024				2024				2024
Total interest income		$	30,823			$	32,449			$	32,223			$	31,094			$	30,016
Total interest expense			14,832				16,987				17,146				16,560				15,678
Net interest income			15,991				15,462				15,077				14,534				14,338
Provision (credit) for credit losses - loans			(357	)			(491	)			1,808				501				713
Provision (credit) for unfunded lending commitments			123				46				(262	)			158				(259	)
Provision (credit) for credit losses - securities			(1	)			(6	)			(86	)			84				23
Total provision (credit) for credit losses			(235	)			(451	)			1,460				743				477
Net interest income after provision for credit losses			16,226				15,913				13,617				13,791				13,861
Total noninterest income			3,560				6,103				2,842				3,196				3,710
Total noninterest expense			13,698				14,943				12,642				12,431				11,778
Income before income taxes			6,088				7,073				3,817				4,556				5,793
Income tax expense (benefit)			589				848				145				483				866
Net income			5,499				6,225				3,672				4,073				4,927
Net income per share, basic		$	0.80			$	0.91			$	0.54			$	0.60			$	0.72
Weighted average shares outstanding, basic			6,875,826				6,851,153				6,832,626				6,832,452				6,832,130
Net income per share, diluted		$	0.79			$	0.89			$	0.53			$	0.60			$	0.72
Weighted average shares outstanding, diluted			6,960,020				6,969,223				6,894,532				6,842,336				6,859,611
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):		Three Months Ended
Noninterest Income Detail		March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands)			2025				2024				2024				2024				2024
Service charges on deposit accounts		$	541			$	567			$	552			$	538			$	387
ATM and interchange fees			632				665				642				593				585
Net unrealized gain on equity securities			47				78				28				419				6
Net gain on equity securities			-				403				-				-				-
Net gain on sales of loans, Small Business Administration			1,078				711				647				581				951
Net gain on sales of loans, home equity lines of credit			-				2,492				-				-				-
Mortgage banking income			104				78				6				49				53
Increase in cash surrender value of life insurance			380				361				363				353				333
Gain on life insurance			-				108				-				-				-
Commission income			255				210				294				220				220
Real estate lease income			122				121				122				154				115
Net gain (loss) on premises and equipment			-				45				(4	)			-				120
Other income			401				264				192				289				940
Total noninterest income		$	3,560			$	6,103			$	2,842			$	3,196			$	3,710
		Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Consolidated Performance Ratios (Annualized)			2025				2024				2024				2024				2024
Return on average assets			0.93	%			1.02	%			0.61	%			0.69	%			0.92	%
Return on average equity			12.24	%			14.07	%			8.52	%			9.86	%			13.06	%
Return on average common stockholders' equity			12.34	%			14.07	%			8.52	%			9.86	%			13.06	%
Net interest margin (tax equivalent basis)			2.93	%			2.75	%			2.72	%			2.67	%			2.66	%
Efficiency ratio			70.06	%			69.29	%			70.55	%			70.11	%			65.26	%
		As of or for the Three Months Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
Consolidated Asset Quality Ratios			2025				2024				2024				2024				2024
Nonperforming loans as a percentage of total loans			0.67	%			0.87	%			0.85	%			0.91	%			0.82	%
Nonperforming assets as a percentage of total assets			0.55	%			0.71	%			0.71	%			0.72	%			0.68	%
Allowance for credit losses as a percentage of total loans			1.08	%			1.09	%			1.07	%			1.07	%			1.02	%
Allowance for credit losses as a percentage of nonperforming loans			161.04	%			124.85	%			125.69	%			118.12	%			124.01	%
Net charge-offs to average outstanding loans			-0.01	%			0.01	%			0.02	%			0.01	%			0.01	%
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)			2025				2024				2024				2024				2024
Core Banking Segment:
Net interest income		$	14,259			$	13,756			$	14,083			$	13,590			$	13,469
Provision (credit) for credit losses - loans			(540	)			(745	)			1,339				320				909
Provision (credit) for unfunded lending commitments			35				(75	)			78				64				(259	)
Provision (credit) for credit losses - securities			(1	)			(7	)			(86	)			84				23
Net interest income after provision (credit) for credit losses			14,765				14,583				12,752				13,122				12,796
Noninterest income			2,242				5,253				2,042				2,474				2,537
Noninterest expense			11,486				12,574				10,400				10,192				10,093
Income before income taxes			5,521				7,262				4,394				5,404				5,240
Income tax expense			452				893				301				689				729
Net income		$	5,069			$	6,369			$	4,093			$	4,715			$	4,511
SBA Lending Segment (Q2):
Net interest income		$	1,732			$	1,706			$	994			$	944			$	869
Provision (credit) for credit losses - loans			183				255				469				181				(196	)
Provision (credit) for unfunded lending commitments			88				121				(340	)			94				-
Net interest income after provision for credit losses			1,461				1,330				865				669				1,065
Noninterest income			1,318				850				800				722				1,173
Noninterest expense			2,212				2,369				2,242				2,239				1,685
Income (loss) before income taxes			567				(189	)			(577	)			(848	)			553
Income tax expense (benefit)			137				(45	)			(156	)			(206	)			137
Net income (loss)		$	430			$	(144	)		$	(421	)		$	(642	)		$	416
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 percentage data)			2025				2024				2024				2024				2024
Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking		$	0.74			$	0.93			$	0.60			$	0.69			$	0.66
Net income (loss) per share, basic - SBA Lending (Q2)			0.06				(0.02	)			(0.06	)			(0.09	)			0.06
Total net income (loss) per share, basic		$	0.80			$	0.91			$	0.54			$	0.60			$	0.72
Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking		$	0.73			$	0.91			$	0.59			$	0.69			$	0.66
Net income (loss) per share, diluted - SBA Lending (Q2)			0.06				(0.02	)			(0.06	)			(0.09	)			0.06
Total net income (loss) per share, diluted		$	0.79			$	0.89			$	0.53			$	0.60			$	0.72
Return on Average Assets by Segment (annualized) (3)
Core Banking			0.90	%			1.09	%			0.71	%			0.83	%			0.80	%
SBA Lending			1.58	%			(0.55	%)			(1.71	%)			(2.91	%)			1.81	%
Efficiency Ratio by Segment (annualized) (3)
Core Banking			69.61	%			66.15	%			64.50	%			63.45	%			63.06	%
SBA Lending			72.52	%			92.68	%			124.97	%			134.39	%			82.52	%
		Three Months Ended
Noninterest Expense Detail by Segment		March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands)			2025				2024				2024				2024				2024
Core Banking Segment:
Compensation		$	6,637			$	7,245			$	5,400			$	5,587			$	5,656
Occupancy			1,648				1,577				1,554				1,573				1,615
Advertising			429				338				399				253				205
Other			2,772				3,414				3,047				2,779				2,617
Total Noninterest Expense		$	11,486			$	12,574			$	10,400			$	10,192			$	10,093
SBA Lending Segment (Q2):
Compensation		$	1,892			$	1,931			$	1,854			$	1,893			$	1,933
Occupancy			50				59				55				51				58
Advertising			10				14				17				12				7
Other			260				365				316				283				(313	)
Total Noninterest Expense		$	2,212			$	2,369			$	2,242			$	2,239			$	1,685
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):		Three Months Ended
SBA Lending (Q2) Data		March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands, except percentage data)			2025				2024				2024				2024				2024
Final funded loans guaranteed portion sold, SBA		$	15,716			$	10,785			$	10,880			$	7,515			$	15,144
Gross gain on sales of loans, SBA		$	1,508			$	1,141			$	1,029			$	811			$	1,443
Weighted average gross gain on sales of loans, SBA			9.60	%			10.58	%			9.46	%			10.79	%			9.53	%
Net gain on sales of loans, SBA (2)		$	1,078			$	711			$	647			$	581			$	951
Weighted average net gain on sales of loans, SBA			6.86	%			6.59	%			5.95	%			7.73	%			6.28	%
(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		March 31,				December 31,				September 30,				June 30,				March 31,
(In thousands)			2025				2024				2024				2024				2024
Interest-earning assets
Average balances:
Interest-bearing deposits with banks		$	11,851			$	21,102			$	16,841			$	26,100			$	24,587
Loans			1,946,338				2,010,082				1,988,997				1,943,716				1,914,609
Investment securities - taxable			102,744				101,960				99,834				101,350				102,699
Investment securities - nontaxable			161,579				160,929				158,917				157,991				157,960
FRB and FHLB stock			24,986				24,986				24,986				24,986				24,986
Total interest-earning assets		$	2,247,498			$	2,319,059			$	2,289,575			$	2,254,143			$	2,224,841
Interest income (tax equivalent basis):
Interest-bearing deposits with banks		$	168			$	210			$	209			$	324			$	261
Loans			27,998				29,617				29,450				28,155				27,133
Investment securities - taxable			921				914				910				918				923
Investment securities - nontaxable			1,719				1,715				1,685				1,665				1,662
FRB and FHLB stock			511				493				471				519				499
Total interest income (tax equivalent basis)		$	31,317			$	32,949			$	32,725			$	31,581			$	30,478
Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks			5.67	%			3.98	%			4.96	%			4.97	%			4.25	%
Loans			5.75	%			5.89	%			5.92	%			5.79	%			5.67	%
Investment securities - taxable			3.59	%			3.59	%			3.65	%			3.62	%			3.59	%
Investment securities - nontaxable			4.26	%			4.26	%			4.24	%			4.22	%			4.21	%
FRB and FHLB stock			8.18	%			7.89	%			7.54	%			8.31	%			7.99	%
Total interest-earning assets			5.57	%			5.68	%			5.72	%			5.60	%			5.48	%
Interest-bearing liabilities
Interest-bearing deposits		$	1,653,058			$	1,671,156			$	1,563,258			$	1,572,871			$	1,549,012
Federal Home Loan Bank borrowings			266,975				315,583				378,956				351,227				333,275
Subordinated debt and other borrowings			48,656				48,616				48,576				48,537				48,497
Total interest-bearing liabilities		$	1,968,689			$	2,035,355			$	1,990,790			$	1,972,635			$	1,930,784
Interest expense:
Interest-bearing deposits		$	12,069			$	13,606			$	12,825			$	12,740			$	12,546
Federal Home Loan Bank borrowings			2,001				2,617				3,521				3,021				2,298
Subordinated debt and other borrowings			762				764				800				799				833
Total interest expense		$	14,832			$	16,987			$	17,146			$	16,560			$	15,677
Weighted average cost (annualized):
Interest-bearing deposits			2.92	%			3.26	%			3.28	%			3.24	%			3.24	%
Federal Home Loan Bank borrowings			3.00	%			3.32	%			3.72	%			3.44	%			2.76	%
Subordinated debt and other borrowings			6.26	%			6.29	%			6.59	%			6.58	%			6.87	%
Total interest-bearing liabilities			3.01	%			3.34	%			3.45	%			3.36	%			3.25	%
Net interest income (taxable equivalent basis)		$	16,485			$	15,962			$	15,579			$	15,021			$	14,801
Less: taxable equivalent adjustment			(494	)			(500	)			(502	)			(487	)			(463	)
Net interest income		$	15,991			$	15,462			$	15,077			$	14,534			$	14,338
Interest rate spread (tax equivalent basis, annualized)			2.56	%			2.34	%			2.27	%			2.24	%			2.23	%
Net interest margin (tax equivalent basis, annualized)			2.93	%			2.75	%			2.72	%			2.67	%			2.66	%