EX-99.1 2 tv520056_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

FIRST SAVINGS FINANCIAL GROUP, INC. REPORTS FINANCIAL RESULTS FOR THE SECOND FISCAL QUARTER ENDED MARCH 31, 2019

 

Clarksville, Indiana — April 29, 2019. First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $3.5 million, or $1.50 per diluted share, for the quarter ended March 31, 2019 compared to net income of $1.6 million, or $0.69 per diluted share, for the quarter ended March 31, 2018. Net income for the quarter ended March 31, 2018 was negatively impacted by merger costs associated with our acquisition of The First National Bank of Odon, which totaled approximately $921,000, net of tax, or $0.39 per diluted share.

 

Commenting on the Company’s quarterly performance, Larry W. Myers, President and CEO, stated: “We are very pleased with the Company’s performance, which included increasingly strong contribution from core operations, profitability from the mortgage banking segment and a challenging quarter for the SBA lending segment. Core banking continues to grow robustly, as does the mortgage banking segment, which achieved quarterly profitability for the first time during this quarter. The SBA lending segment continues to perform well but realized a lower level of loans originated and sold during this quarter, due primarily to seasonality, and a slight deterioration in credit quality, which resulted in increased provision for loan losses during this quarter. We anticipate the SBA lending segment will return to profitable performance in the quarter ending June 30, 2019.”

 

Net interest income increased $1.1 million, or 13.0%, to $9.9 million for the quarter ended March 31, 2019 as compared to the same quarter in 2018. The increase in net interest income is due to a $2.2 million increase in interest income, which was partially offset by a $1.0 million increase in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $124.2 million, from $910.8 million for 2018 to $1.0 billion for 2019, and an increase in the weighted average tax-equivalent yield, from 4.59% for 2018 to 4.87% for 2019. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $95.3 million, from $732.9 million for 2018 to $828.2 million for 2019, and an increase in the average cost of interest-bearing liabilities, from 0.78% for 2018 to 1.18% for 2019. Increases for the 2019 quarter related to subordinated debt included interest expense of $318,000, including amortization of debt issuance costs, and $19.7 million in the average balance of interest-bearing liabilities, including debt issuance costs. The increase in the average cost of interest-bearing liabilities for the 2019 quarter was due primarily to increasing market rates on deposits and short-term funding alternatives including FHLB advances and brokered deposits and the subordinated debt’s average cost of 6.46%, including amortization of debt issuance costs. Additional details are included in the “Summarized Consolidated Average Balance Sheets” table at the end of this release.

 

The Company recognized $340,000 in provision for loan losses for the quarter ended March 31, 2019, compared to $371,000 in provision for loan losses recognized in the same quarter in 2018. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $1.1 million, from $4.3 million at September 30, 2018 to $5.4 million at March 31, 2019. The Company recognized net charge-offs of $25,000 for the quarter ended March 31, 2019 compared to $18,000 for the same quarter in 2018.

 

 

 

 

Noninterest income increased $4.5 million for the quarter ended March 31, 2019 as compared to the same quarter in 2018. The increase was due primarily to an increase in mortgage banking income of $5.0 million, which was partially offset by a decrease in the net gain on sale of loans guaranteed by the U.S. Small Business Administration (“SBA”) of $967,000. The increase in mortgage banking income is due to production from the secondary-market residential mortgage lending segment that commenced operations in April 2018. The Bank’s SBA lending activities are performed under Q2 Business Capital, LLC (“Q2”), which specializes in the origination and servicing of SBA loans. The Bank owns 51% of Q2 with the option to purchase the minority interest in September 2020. Gross revenues and expenses related to Q2 are reported in the consolidated statements of income and the net income or net loss attributable to noncontrolling interests is then added (in the case of a net loss) or subtracted (in the case of net income) to arrive at net income attributable to the Company. Additional details regarding the financial performance of the mortgage banking and SBA lending segments are included in the “Segmented Income Statement Information” table at the end of this release.

 

Noninterest expense increased $4.5 million for the quarter ended March 31, 2019 as compared to the same quarter in 2018. The increase was due primarily to increases in compensation and benefits, other operating expenses, and occupancy and equipment of $3.8 million, $524,000 and $497,000, respectively. The increase in compensation and benefits expense is attributable to the addition of new employees to support the growth of the Company, including its mortgage banking and SBA lending activities, and normal salary and benefits adjustments. The increase in other operating expenses is primarily due to increases in loan expense related to the mortgage banking activities and insurance reserves and claims related to the Company’s captive insurance subsidiary. The increase in occupancy and equipment expense is primarily attributable to increases in lease and rental, depreciation and equipment, and software licensing expenses that are primarily related to the new mortgage banking segment.

 

The Company recognized income tax expense of $466,000 for the quarter ended March 31, 2019, for an effective tax rate of 12.5%, as compared to income tax expense of $338,000, for an effective tax rate of 13.2%, for the same quarter in 2018.

 

Results of Operations for the Six Months Ended March 31, 2019 and 2018

 

The Company reported net income of $6.5 million, or $2.73 per diluted share, for the six months ended March 31, 2019 compared to net income of $5.1 million, or $2.14 per diluted share, for the six months ended March 31, 2018. Net income for the six months ended March 31, 2018 was negatively impacted by merger costs associated with our acquisition of First National Bank of Odon, which totaled approximately $945,000, net of tax, or $0.40 per diluted share.

 

 

 

 

Net interest income increased $2.7 million, or 15.9%, to $19.4 million for the six months ended March 31, 2019 as compared to the same period in 2018. The increase in net interest income is due to a $4.5 million increase in interest income, which was partially offset by a $1.9 million increase in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $127.4 million, from $884.8 million for 2018 to $1.0 billion for 2019, and an increase in the weighted-average tax-equivalent yield, from 4.56% for 2018 to 4.87% for 2019. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $81.4 million, from $721.0 million for 2018 to $802.4 million for 2019, and an increase in the average cost of interest-bearing liabilities, from 0.78% for 2018 to 1.16% for 2019. Increases for the six months ended March 31, 2019, related to subordinated debt included interest expense of $640,000, including amortization of debt issuance costs, and $19.7 million in the average balance of interest-bearing liabilities, including debt issuance costs. The increase in the average cost of interest-bearing liabilities for the six months ended March 31, 2019 was due primarily to increasing market rates on deposits and short-term funding alternatives including FHLB advances and brokered deposits and the subordinated debt’s average cost of 6.51%, including amortization of debt issuance costs. Additional details are included in the “Summarized Consolidated Average Balance Sheets” table at the end of this release.

 

The Company recognized $655,000 in provision for loan losses for the six months ended March 31, 2019, compared to $833,000 in provision for loan losses recognized in the same period in 2018. The Company recognized net charge-offs of $43,000 for the six months ended March 31, 2019 compared to $61,000 for the same period in 2018.

 

Noninterest income increased $7.4 million for the six months ended March 31, 2019 as compared to the same period in 2018. The increase was due primarily to an increase in mortgage banking income of $8.2 million, which was partially offset by a decrease in the net gain on sale of loans guaranteed by the SBA of $1.5 million. The increase in mortgage banking income is due to production from the secondary-market residential mortgage lending segment that commenced operations in April 2018. Additional details regarding the financial performance of the mortgage banking and SBA lending segments are included in the “Segmented Income Statement Information” table at the end of this release.

 

Noninterest expense increased $9.6 million for the six months ended March 31, 2019 as compared to the same period in 2018. The increase was due primarily to increases in compensation and benefits, other operating expenses, and occupancy and equipment of $7.1 million, $1.2 million and $1.1 million, respectively. The increase in compensation and benefits expense is attributable to the addition of new employees to support the growth of the Company, including its mortgage banking and SBA lending activities, and normal salary and benefits adjustments. The increase in other operating expenses is primarily due to increases in loan expense related to the mortgage banking activities and insurance reserves and claims related to the Company’s captive insurance subsidiary. The increase in occupancy and equipment expense is primarily attributable to increases in lease and rental, depreciation and equipment, and software licensing expenses that are primarily related to the new mortgage banking segment.

 

 

 

 

The Company recognized income tax expense of $988,000 for the six months ended March 31, 2019, for an effective tax rate of 13.4%, as compared to income tax expense of $960,000, for an effective tax rate of 14.4%, for the same period in 2018.

 

 

Comparison of Financial Condition at March 31, 2019 and September 30, 2018

 

Total assets increased $95.3 million, from $1.0 billion at September 30, 2018 to $1.1 billion at March 31, 2019. Net loans increased $58.4 million during the six months ended March 31, 2019, due primarily to continued growth in the commercial real estate and SBA loan portfolios. Total liabilities increased $85.6 million primarily due to a $70.9 million increase in Federal Home Loan Bank borrowings and a $13.7 million increase in total deposits.

 

Common stockholders’ equity increased $9.9 million, from $98.8 million at September 30, 2018 to $108.7 million at March 31, 2019, due primarily to retained net income of $5.7 million and net unrealized gains of $3.7 million on the available-for-sale securities portfolio. At March 31, 2019 and September 30, 2018, the Company and Bank were considered “well-capitalized” under applicable regulatory capital guidelines.

 

First Savings Bank has sixteen offices in the Indiana communities of Clarksville, Jeffersonville, Charlestown, Sellersburg, New Albany, Georgetown, Corydon, Lanesville, Elizabeth, English, Leavenworth, Marengo, Salem, Odon and Montgomery. Access to First Savings Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank's website at www.fsbbank.net.

 

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

 

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

 

 

 

 

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

 

Contact

Tony A. Schoen, CPA

Chief Financial Officer

812-283-0724

 

 

 

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

                   

 

   Three Months Ended   Six Months Ended 
   March 31,   March 31, 
OPERATING DATA:  2019   2018   2019   2018 
(In thousands, except share and per share data)                
                 
Total interest income  $12,307   $10,146   $24,108   $19,572 
Total interest expense   2,446    1,423    4,671    2,796 
                     
Net interest income   9,861    8,723    19,437    16,776 
Provision for loan losses   340    371    655    833 
                     
Net interest income after provision for loan losses   9,521    8,352    18,782    15,943 
                     
Total noninterest income   7,089    2,567    12,870    5,473 
Total noninterest expense   12,880    8,359    24,296    14,741 
                     
Income before income taxes   3,730    2,560    7,356    6,675 
Income tax expense   466    338    988    960 
                     
Net income   3,264    2,222    6,368    5,715 
                     
Less:  Net income (loss) attributable to noncontrolling interests   (269)   576    (96)   663 
                     
Net income attributable to the Company  $3,533   $1,646   $6,464   $5,052 
                     
Net income per share, basic  $1.53   $0.73   $2.82   $2.26 
Weighted average shares outstanding, basic   2,307,155    2,251,425    2,295,788    2,239,823 
                     
Net income per share, diluted  $1.50   $0.69   $2.73   $2.14 
Weighted average shares outstanding, diluted   2,360,004    2,370,260    2,366,524    2,363,606 

 

 

   March 31,   September 30,   Increase 
FINANCIAL CONDITION DATA:  2019   2018   (Decrease) 
(In thousands, except per share data)            
             
Total assets  $1,129,722   $1,034,406   $95,316 
Cash and cash equivalents   40,442    42,274    (1,832)
Investment securities   193,547    186,980    6,567 
Loans held for sale   48,803    32,125    16,678 
Gross loans   772,595    713,594    59,001 
Allowance for loan losses   9,934    9,323    611 
Interest earning assets   1,046,995    963,581    83,414 
Goodwill   9,848    9,848    - 
Core deposit intangibles   1,523    1,727    (204)
Noninterest-bearing deposits   162,901    167,705    (4,804)
Interest-bearing deposits   661,869    643,407    18,462 
FHLB borrowings   160,938    90,000    70,938 
Total liabilities   1,019,793    934,161    85,632 
Stockholders' equity, net of noncontrolling interests   108,688    98,813    9,875 
                
Book value per share  $46.35   $43.11   $3.24 
Tangible book value per share (1)   41.50    38.06    3.44 
                
Non-performing assets:               
Nonaccrual loans  $5,215   $4,182   $1,033 
Accruing loans past due 90 days   156    91    65 
Total non-performing loans   5,371    4,273    1,098 
Foreclosed real estate   79    103    (24)
Troubled debt restructurings classified as performing loans   8,501    9,145    (644)
Total non-performing assets  $13,951   $13,521   $430 
                
Asset quality ratios:               
Allowance for loan losses as a percent of total gross loans   1.29%   1.31%   -0.02%
Allowance for loan losses as a percent of nonperforming loans   184.96%   218.18%   -33.23%
Nonperforming loans as a percent of total gross loans   0.70%   0.60%   0.10%
Nonperforming assets as a percent of total assets   1.23%   1.31%   -0.07%

 

 
(1)See reconciliation of GAAP and Non-GAAP financial measures for additional information relating to calculation of this item.

 

 

 

 

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES:

 

The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings.  The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.

           

 

   Three Months Ended   Six Months Ended 
   March 31,   March 31, 
Net Income  2019   2018   2019   2018 
(In thousands)                
Net income attributable to the Company (non-GAAP)  $3,533   $2,567   $6,464   $5,875 
Less:  Merger-related expenses, net of tax effect   -    (921)   -    (945)
Less:  Effect of adjustment to deferred taxes due to tax law change   -    -    -    122 
Net income attributable to the Company (GAAP)  $3,533   $1,646   $6,464   $5,052 

 

 

   Three Months Ended   Six Months Ended 
   March 31,   March 31, 
Net Income per Share, Diluted  2019   2018   2019   2018 
                 
Net income per share, diluted (non-GAAP)  $1.50   $1.08   $2.73   $2.49 
Less:  Merger-related expenses, net of tax effect   -    (0.39)   -    (0.40)
Less:  Effect of adjustment to deferred taxes due to tax law change   -    -    -    0.05 
Net income per share, diluted (GAAP)  $1.50   $0.69   $2.73   $2.14 

 

 

   Three Months Ended   Six Months Ended 
   March 31,   March 31, 
Efficiency Ratio  2019   2018   2019   2018 
(In thousands)                
Noninterest expense (GAAP)  $12,880   $8,359   $24,296   $14,741 
                     
Net interest income (GAAP)   9,861    8,723    19,437    16,776 
                     
Noninterest income (GAAP)   7,089    2,567    12,870    5,473 
                     
Efficiency ratio (GAAP)   75.99%   74.04%   75.20%   66.25%
                     
                     
Noninterest expense (GAAP)  $12,880   $8,359   $24,296   $14,741 
Less:  Merger-related expenses   -    (1,251)   -    (1,281)
Noninterest expense (non-GAAP)   12,880    7,108    24,296    13,460 
                     
Net interest income (GAAP)   9,861    8,723    19,437    16,776 
                     
Noninterest income (GAAP)   7,089    2,567    12,870    5,473 
                     
Efficiency ratio (excluding nonrecurring items) (non-GAAP)   75.99%   62.96%   75.20%   60.50%

 

 

   March 31,   September 30, 
Tangible Book Value Per Share  2019   2018 
(In thousands, except share and per share data)        
         
Stockholders' equity, net of noncontrolling interests (GAAP)  $108,688   $98,813 
Less:  goodwill and core deposit intangibles   (11,371)   (11,575)
Tangible equity (non-GAAP)   97,317    87,238 
           
Outstanding common shares   2,344,836    2,292,021 
           
Tangible book value per share (non-GAAP)  $41.50   $38.06 
           
Book value per share (GAAP)  $46.35   $43.11 

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION:

                   

 

   As of 
Summarized Consolidated Balance Sheets  March 31,   December 31,   September 30,   June 30,   March 31, 
(In thousands, except per share data)  2019   2018   2018   2018   2018 
Total cash and cash equivalents  $40,442   $36,344   $42,274   $38,002   $39,030 
Total investment securities   193,547    188,830    186,980    210,758    198,206 
Total loans, net of allowance for loan losses   762,661    734,061    704,271    693,858    682,441 
Total assets   1,129,722    1,073,989    1,034,406    1,035,346    1,008,554 
                          
Total deposits   824,770    832,073    811,112    834,754    758,787 
Total borrowings from the Federal Home Loan Bank   160,938    107,019    90,000    90,000    144,223 
                          
Stockholders' equity, net of noncontrolling interests   108,688    102,968    98,813    97,640    95,164 
Noncontrolling interests in subsidiary   1,241    1,593    1,432    1,229    663 
Total equity   109,929    104,561    100,245    98,869    95,827 
                          
Outstanding common shares   2,344,836    2,304,310    2,292,021    2,292,021    2,279,021 

 

 

   Three Months Ended 
Summarized Consolidated Statements of Income  March 31,   December 31,   September 30,   June 30,   March 31, 
(In thousands, except per share data)  2019   2018   2018   2018   2018 
Total interest income  $12,307   $11,801   $11,381   $11,206   $10,146 
Total interest expense   2,446    2,225    1,842    1,699    1,423 
Net interest income   9,861    9,576    9,539    9,507    8,723 
Provision for loan losses   340    315    254    266    371 
Net interest income after provision for loan losses   9,521    9,261    9,285    9,241    8,352 
                          
Total noninterest income   7,089    5,781    4,568    3,254    2,567 
Total noninterest expense   12,880    11,416    10,143    8,122    8,359 
Income before income taxes   3,730    3,626    3,710    4,373    2,560 
Income tax expense   466    522    766    696    338 
Net income   3,264    3,104    2,944    3,677    2,222 
Less: net income (loss) attributable to noncontrolling interests   (269)   173    200    571    576 
Net income attributable to the Company  $3,533   $2,931   $2,744   $3,106   $1,646 
                          
                          
Net income per share, basic  $1.53   $1.28   $1.20   $1.37   $0.73 
Weighted average shares outstanding, basic   2,307,155    2,284,665    2,277,709    2,274,951    2,251,425 
                          
Net income per share, diluted  $1.50   $1.24   $1.15   $1.31   $0.69 
Weighted average shares outstanding, diluted   2,360,004    2,371,480    2,379,520    2,378,839    2,370,260 

 

 

   Three Months Ended 
   March 31,   December 31,   September 30,   June 30,   March 31, 
Consolidated Performance Ratios (Annualized)  2019   2018   2018   2018   2018 
Return on average assets   1.28%   1.11%   1.06%   1.21%   0.68%
Return on average equity   12.34%   12.35%   11.83%   15.31%   9.22%
Return on average common stockholders' equity   13.55%   11.82%   11.16%   13.02%   6.83%
Net interest margin (tax equlivalent basis)   3.92%   3.98%   4.04%   4.05%   3.97%
Efficiency ratio (excluding nonrecurring items) (non-GAAP)   75.99%   74.34%   73.01%   60.43%   62.96%

 

 

   As of or for the Three Months Ended 
   March 31,   December 31,   September 30,   June 30,   March 31, 
Consolidated Asset Quality Ratios  2019   2018   2018   2018   2018 
Nonperforming loans as a percentage of total loans   0.70%   0.62%   0.60%   0.50%   0.41%
Nonperforming assets as a percentage of total assets   1.23%   1.28%   1.31%   1.25%   1.24%
Allowance for loan losses as a percentage of total loans   1.29%   1.29%   1.31%   1.28%   1.28%
Allowance for loan losses as a percentage of nonperforming loans   184.96%   208.77%   218.18%   255.12%   309.39%
Net charge-offs (recoveries) to average outstanding loans   0.00%   0.00%   -0.01%   0.01%   0.00%

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (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)  2019   2018   2018   2018   2018 
Interest income - Core Banking  $10,479   $10,123   $9,811   $9,919   $8,945 
Interest income - SBA Lending (Q2)   1,640    1,524    1,470    1,287    1,201 
Interest income - Mortgage Banking   188    154    100    -    - 
Total interest income  $12,307   $11,801   $11,381   $11,206   $10,146 
                          
Provision for loan losses - Core Banking  $(492)  $(16)  $17   $52   $256 
Provision for loan losses - SBA Lending (Q2)   832    331    237    214    115 
Provision for loan losses - Mortgage Banking   -    -    -    -    - 
Total provision for loan losses  $340   $315   $254   $266   $371 
                          
Noninterest income - Core Banking  $1,337   $1,380   $1,735   $1,508   $947 
Noninterest income - SBA Lending (Q2)   673    1,137    875    1,697    1,620 
Noninterest income - Mortgage Banking   5,079    3,264    1,958    49    - 
Total noninterest income  $7,089   $5,781   $4,568   $3,254   $2,567 
                          
Noninterest expense - Core Banking  $6,995   $6,586   $6,771   $6,333   $7,288 
Noninterest expense - SBA Lending (Q2)   1,322    1,362    1,162    1,127    1,071 
Noninterest expense - Mortgage Banking   4,563    3,468    2,210    662    - 
Total noninterest expense  $12,880   $11,416   $10,143   $8,122   $8,359 
                          
Income before income taxes - Core Banking  $3,573   $3,324   $3,453   $3,820   $1,385 
Income (loss) before income taxes - SBA Lending (Q2)   (547)   352    409    1,166    1,175 
Income (loss) before income taxes - Mortgage Banking   704    (50)   (152)   (613)   - 
Total income before income taxes  $3,730   $3,626   $3,710   $4,373   $2,560 
                          
Income tax expense - Core Banking  $360   $490   $750   $702   $167 
Income tax expense (benefit) - SBA Lending (Q2)   (70)   45    59    169    171 
Income tax expense (benefit) - Mortgage Banking   176    (13)   (43)   (175)   - 
Total income tax expense  $466   $522   $766   $696   $338 
                          
Net income - Core Banking  $3,213   $2,834   $2,703   $3,118   $1,218 
Net income (loss) - SBA Lending (Q2)   (477)   307    350    997    1,004 
Net income (loss) - Mortgage Banking   528    (37)   (109)   (438)   - 
Total net income  $3,264   $3,104   $2,944   $3,677   $2,222 
                          
Net income attributable to the Company - Core Banking  $3,213   $2,834   $2,703   $3,118   $1,218 
Net income (loss) attributable to the Company - SBA Lending (Q2)   (208)   134    150    426    428 
Net income (loss) attributable to the Company - Mortgage Banking   528    (37)   (109)   (438)   - 
Total net income attributable to the Company  $3,533   $2,931   $2,744   $3,106   $1,646 
                          
Net income per share, basic - Core Banking  $1.39   $1.24   $1.18   $1.37   $0.54 
Net income per share, basic - SBA Lending (Q2)   (0.09)   0.06    0.07    0.19    0.19 
Net income per share, basic - Mortgage Banking   0.23    (0.02)   (0.05)   (0.19)   0.00 
Total net income per share, basic  $1.53   $1.28   $1.20   $1.37   $0.73 
                          
Net income per share, diluted - Core Banking  $1.37   $1.20   $1.14   $1.31   $0.51 
Net income per share, diluted - SBA Lending (Q2)   (0.09)   0.06    0.06    0.18    0.18 
Net income per share, diluted - Mortgage Banking   0.22    (0.02)   (0.05)   (0.18)   - 
Total net income per share, diluted  $1.50   $1.24   $1.15   $1.31   $0.69 

 

 

   Three Months Ended 
SBA Lending (Q2) Data  March 31,   December 31,   September 30,   June 30,   March 31, 
(In thousands, except percentage data)  2019   2018   2018   2018   2018 
Final funded loans guaranteed portion sold, SBA  $9,133   $12,943   $12,109   $17,631   $19,741 
                          
Gross gain on sales of loans, SBA  $977   $1,203   $1,246   $2,025   $2,148 
Weighted average gross gain on sales of loans, SBA   10.70%   9.29%   10.29%   11.49%   10.88%
                          
Net gain on sales of loans, SBA (1)  $521   $964   $907   $1,557   $1,489 
Weighted average net gain on sales of loans, SBA   5.70%   7.45%   7.49%   8.83%   7.54%

 

(1)Net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets

 

 

 

 

SUMMARIZED FINANCIAL INFORMATION (CONTINUED):

                   

 

   Three Months Ended 
   March 31,   December 31,   September 30,   June 30,   March 31, 
Summarized Consolidated Average Balance Sheets  2019   2018   2018   2018   2018 
(In thousands)                    
                     
Interest-earning assets                         
Average balances:                         
Interest-bearing deposits with banks  $36,317   $30,271   $26,716   $30,967   $28,318 
Loans   802,652    763,637    745,078    723,427    683,865 
Investment securities   161,170    156,570    157,834    163,610    153,636 
Agency mortgage-backed securities   24,682    29,133    37,393    42,624    35,421 
FRB and FHLB stock   10,196    10,171    9,621    9,621    9,569 
Total interest-earning assets  $1,035,017   $989,782   $976,642   $970,249   $910,809 
                          
Interest income (taxable equlivalent basis):                         
Interest-bearing deposits with banks  $221   $153   $138   $112   $116 
Loans   10,227    9,828    9,349    8,885    8,192 
Investment securities   1,819    1,783    1,822    2,123    1,765 
Agency mortgage-backed securities   179    193    274    297    235 
FRB and FHLB stock   142    121    119    107    149 
Total interest-earning assets  $12,588   $12,078   $11,702   $11,524   $10,457 
                          
Weighted average yield (tax equlivalent basis, annualized):                         
Interest-bearing deposits with banks   2.43%   2.02%   2.07%   1.45%   1.64%
Loans   5.10%   5.15%   5.02%   4.91%   4.79%
Investment securities   4.51%   4.56%   4.62%   5.19%   4.60%
Agency mortgage-backed securities   2.90%   2.65%   2.93%   2.79%   2.65%
FRB and FHLB stock   5.57%   4.76%   4.95%   4.45%   6.23%
Total interest-earning assets   4.86%   4.88%   4.79%   4.75%   4.59%
                          
Interest-bearing liabilities                         
Average balances:                         
Interest-bearing deposits  $693,127   $651,060   $664,526   $653,119   $581,861 
Repurchase agreements   1,353    1,352    1,351    1,350    1,349 
Borrowings from Federal Home Loan Bank   114,044    104,999    99,614    111,036    149,680 
Other borrowings   19,684    19,667    2,352    -    - 
Total interest-bearing liabilities  $828,208   $777,078   $767,843   $765,505   $732,890 
                          
Interest expense:                         
Interest-bearing deposits  $1,607   $1,424   $1,389   $1,222   $807 
Repurchase agreements   1    1    1    1    1 
Borrowings from Federal Home Loan Bank   520    478    420    476    615 
Other borrowings   318    322    33    -    - 
Total interest-bearing liabilities  $2,446   $2,225   $1,843   $1,699   $1,423 
                          
Weighted average cost (annualized):                         
Interest-bearing deposits   0.93%   0.87%   0.84%   0.75%   0.55%
Repurchase agreements   0.30%   0.30%   0.30%   0.30%   0.30%
Borrowings from Federal Home Loan Bank   1.82%   1.82%   1.69%   1.71%   1.64%
Other borrowings   6.46%   6.55%   5.61%   0.00%   0.00%
Total interest-bearing liabilities   1.18%   1.15%   0.96%   0.89%   0.78%
                          
Interest rate spread (tax equlivalent basis, annualized)   3.68%   3.73%   3.83%   3.86%   3.81%
                          
Net interest margin (tax equlivalent basis, annualized)   3.92%   3.98%   4.04%   4.05%   3.97%