EX-99.1 2 a2022-04x27xhtbixex991.htm EX-99.1 Document

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HomeTrust Bancshares, Inc. Announces Financial Results for the Third Quarter of Fiscal 2022 and Quarterly Dividend

ASHEVILLE, N.C., April 27, 2022 – HomeTrust Bancshares, Inc. (NASDAQ: HTBI) ("Company"), the holding company of HomeTrust Bank ("Bank"), today announced preliminary net income for the third quarter of fiscal 2022 and approval of its quarterly dividend.
For the quarter ended March 31, 2022 compared to the corresponding quarter in the previous year:
•net income was $8.0 million, compared to $7.9 million;
•diluted earnings per share ("EPS") was $0.51, compared to $0.48;
•annualized return on assets ("ROA") was 0.92%, compared to 0.84%;
•annualized return on equity ("ROE") was 8.15%, compared to 7.78%;
•provision for credit losses was a net benefit of $45,000, compared to a net benefit of $4.1 million;
•noninterest income was $8.9 million compared to $10.7 million;
•prepayment penalty on the early retirement of borrowings was $0 compared to $3.7 million;
•419,931 shares of Company common stock were repurchased during the quarter at an average price of $30.76 per share;
•net commercial loan growth, excluding U.S. Small Business Administration's ("SBA") Paycheck Protection Program ("PPP") loans, was $29.8 million, or 6.0% annualized compared to $42.7 million, or 9.7% annualized, in the prior year; and
•quarterly cash dividends continued at $0.09 per share, totaling $1.4 million.
For the nine months ended March 31, 2022 compared to the previous year:
•net income was $29.6 million, compared to $23.1 million;
•diluted earnings per share ("EPS") was $1.84, compared to $1.40;
•annualized return on assets ("ROA") was 1.12%, compared to 0.83%;
•annualized return on equity ("ROE") was 9.91%, compared to 7.64%;
•provision for credit losses was a net benefit of $4.0 million, compared to a net benefit of $6.2 million;
•noninterest income was $29.5 million compared to $28.7 million;
•prepayment penalty on the early retirement of borrowings was $0 compared to $3.7 million;
•1,095,763 shares of Company common stock were repurchased during the nine months at an average price of $29.50 per share; and
•net commercial loan growth, excluding PPP loans, was $108.7 million, or 7.5% annualized compared to $31.7 million, or 2.4% annualized in the prior year.
The Company also announced today that its Board of Directors declared a quarterly cash dividend of $0.09 per common share payable on June 2, 2022 to shareholders of record as of the close of business on May 19, 2022.
“The Company was able to maintain it’s positive momentum this past quarter,” said Dana Stonestreet, Chairman and Chief Executive Officer. “Our commercial loan portfolio had another strong quarter of net growth, primarily within the construction and development and equipment finance portfolios. As expected, upward movement in interest rates resulted in a decline in both the volume of residential mortgage sales and the value of our investment portfolio; however, due to the short-term duration of our investments, our tangible book value per share actually increased even after repurchasing $12.9 million of shares during the quarter. The Company is well-positioned to benefit from an increase in yield on our loan and investment portfolios going forward.”
Comparison of Results of Operations for the Three Months Ended March 31, 2022 and 2021
Net interest income increased by $1.3 million, or 5.2%, to $27.0 million for the quarter ended March 31, 2022, compared to $25.7 million for the comparative quarter in fiscal 2021. Interest and dividend income decreased by $1.1 million, or 3.8%, primarily driven by lower average balances on interest-earning assets combined with lower loan yields. This decrease was offset by a $2.5 million, or 68.2% decrease in interest expense. Average interest-earning assets decreased $225.4 million, or 6.4%, to $3.3 billion for the quarter ended March 31, 2022. The main
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drivers of the change were decreases of $179.4 million, or 34.3%, in the average balance of commercial paper and deposits in other banks and $42.0 million, or 27.3%, in debt securities available for sale as the Company used excess liquidity to reduce borrowings, which declined by $431.5 million, or 92.8%, when compared to the prior period. Net interest margin (on a fully taxable-equivalent basis) for the three months ended March 31, 2022 increased to 3.39% from 3.02% for the same period a year ago as all higher rate long-term borrowings were repaid during the quarter ended June 30, 2021.
Total interest and dividend income decreased $1.1 million, or 3.8%, for the quarter ended March 31, 2022 as compared to the same quarter last year, which was primarily a result of a $1.0 million, or 3.7%, decrease in loan interest income. The lower loan interest income was driven by a decline in the average yield on loans of 17 basis points, from 4.08% to 3.91%. Loan interest income for the quarter included the amortization of $265,000 of PPP loan origination fees, a decline of $349,000 when compared to the $614,000 recognized in the prior period. The overall average yield on interest-earning assets increased 10 basis points to 3.54% for the current quarter compared to 3.44% in the same quarter last year primarily due to the change in the mix of interest-earning assets.
Total interest expense decreased $2.5 million, or 68.2%, for the quarter ended March 31, 2022 compared to the same period last year. The decrease was driven by a $1.6 million, or 99.8%, decrease in interest expense on borrowings as discussed above and a $845,000, or 42.3%, decrease in interest expense on deposits. The average balance of total deposits increased by $228.1 million, or 8.1%, with noninterest-bearing deposits and interest-bearing deposits increasing $161.7 million and $66.4 million, respectively. The increase in interest-bearing deposits was driven by a $113.5 million, or 12.5% increase in money market accounts, partially offset by a $74.9 million, or 14.5%, decrease in certificates of deposit. As stated above, average borrowings for the quarter ended March 31, 2022 decreased $431.5 million, or 92.8%, along with a 137 basis point decrease in the average cost of borrowings compared to the same period last year. The decrease in the average cost of borrowings was primarily driven by the early retirement of long-term borrowings reducing the average balance and partially driven by a shift to short-term borrowings at lower rates. The overall average cost of funds decreased 34 basis points to 0.20% for the current quarter compared to 0.54% in the same quarter last year.
Noninterest income decreased $1.7 million, or 16.2%, to $8.9 million for the quarter ended March 31, 2022 from $10.7 million for the same period in the previous year. This change was primarily due to a $1.9 million, or 39.2%, decrease in gain on sale of loans, partially offset by a $229,000, or 16.0%, increase in operating lease income. The decrease in gain on sale of loans was driven by decreases in loan principal sold across all portfolios. During the quarter ended March 31, 2022, $53.4 million of residential mortgage loans originated for sale were sold with gains of $1.3 million compared to $106.5 million sold and gains of $2.7 million in the corresponding period in the prior year. There were $16.5 million of sales of the guaranteed portion of SBA commercial loans with gains of $1.5 million in the current quarter compared to $20.2 million sold and gains of $1.8 million for the same period last year. The Company sold $25.0 million of home equity lines of credit (HELOC) during the quarter for a gain of $156,000 compared to $43.8 million sold and gains of $301,000 in the corresponding period last year.
Noninterest expense decreased $4.7 million, or 15.4%, for the quarter ended March 31, 2022 as compared to the same period last year, which was primarily a result of a decrease of $3.7 million in prepayment penalties on long-term borrowings, and a $1.1 million, or 6.7%, decrease in salaries and benefits expense due to branch closures and lower mortgage banking incentive pay in the period.
For the quarter ended March 31, 2022, the Company's income tax expense increased $114,000, or 5.4%, to $2.2 million from $2.1 million primarily as a result of higher taxable income. The effective tax rates for the quarters ended March 31, 2022 and 2021 were 21.6% and 21.0%, respectively.
Comparison of Results of Operations for the Nine Months Ended March 31, 2022 and 2021
Net interest income increased by $4.6 million, or 5.9%, to $81.9 million for the nine months ended March 31, 2022, compared to the same period last year. Interest and dividend income decreased by $3.9 million, or 4.4%, primarily driven by lower average balances on interest-earning assets. This decrease was offset by a $8.5 million, or 67.7%, decrease in interest expense. Average interest-earning assets decreased $184.0 million, or 5.3%, to $3.3 billion for the nine months ended March 31, 2022. The biggest reason for the change was a decrease of $143.2 million, or 31.5%, in commercial paper and deposits in other banks, as the Company used excess liquidity to reduce borrowings, where the average balance declined from $471.7 million to $48.9 million. Net interest margin (on a fully taxable-equivalent basis) for the nine months ended March 31, 2022 increased to 3.38% from 3.02% for the same period a year ago as all higher rate long-term borrowings were repaid during the quarter ended June 30, 2021.
Total interest and dividend income decreased $3.9 million, or 4.4%, for the nine months ended March 31, 2022 as compared to the same period last year, which was primarily a result of a $3.1 million, or 3.7%, decrease in loan interest income and a $744,000, or 35.3%, decrease in interest income on commercial paper and deposits in other banks. The lower interest income in each category was driven by the combined effect of a decrease in average balances, as discussed above, and a decline in average loan yields which decreased 13 basis points to 3.90%, and average yields on debt securities available for sale which decreased 13 basis points to 1.42%. Loan interest income for the nine months included the amortization of $975,000 of PPP loan origination fees, a decline of $381,000 when compared to the $1.4 million recognized in the prior period. The overall average yield on interest-earning assets increased three basis points to 3.54% for the nine months compared to 3.51% in the same period last year as a result of a shift to higher yielding assets.
Total interest expense decreased $8.5 million, or 67.7%, for the nine months ended March 31, 2022 compared to the same period last year. The decrease was driven by a $5.0 million, or 99.1%, decrease in interest expense on borrowings as discussed above and a $3.6 million, or 47.0%, decrease in interest expense on deposits. The average balance of total deposits increased by $257.5 million, or 9.3%, with noninterest-bearing deposits and interest-bearing deposits increasing $197.5 million and $60.0 million, respectively. The increase in interest-bearing deposits was driven by a $142.4 million, or 16.6%, increase in money market accounts and $46.4 million, or 7.8%, increase in interest-bearing checking accounts, partially offset by a $146.9 million, or 24.7%, decrease in certificates of deposit. As stated above average borrowings for the nine months ended March 31, 2022 decreased $422.8 million, or 89.6%, along with a 129 basis point decrease in the average cost of
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borrowings compared to the same period last year. The increase in average deposits (interest and noninterest-bearing) was due to successful deposit gathering campaigns and the effect of government stimulus in prior periods. The decrease in the average cost of borrowings was primarily driven by the early retirement of long-term borrowings reducing the average balance and partially driven by a shift to short-term borrowings at lower rates. The overall average cost of funds decreased 39 basis points to 0.23% for the nine months compared to 0.62% in the same period last year.
Noninterest income increased $819,000, or 2.9%, to $29.5 million for the nine months ended March 31, 2022 from $28.7 million for the same period in the previous year. This change was due to an $857,000, or 51.0%, increase in loan income and fees, an $813,000, or 19.8% increase in operating lease income, a $394,000, or 5.9% increase in service charges and fees on deposit accounts, partially offset by a $1.0 million, or 8.4%, decrease in gain on sale of loans. The increase in loan income and fees was primarily a result of $924,000 in additional loan servicing fees as a result of bringing the Company's SBA loan servicing process in-house, which began July 1, 2021. The increase in operating lease income was primarily driven by increases in loan originations and higher outstanding lease balances during the period, while the increase in service charges on deposit accounts was the result of a $234,000 increase in interchange income driven by higher debit card usage. During the nine months ended March 31, 2022, $204.1 million of residential mortgage loans originated for sale were sold with gains of $5.6 million compared to $297.2 million sold and gains of $7.7 million in the corresponding period in the prior year. There were $43.5 million of sales of the guaranteed portion of SBA commercial loans with gains of $4.5 million in the nine months compared to $44.6 million sold and gains of $3.7 million for the same period last year. The Company sold $97.2 million of HELOCs during the nine months ended March 31, 2022 for a gain of $581,000 compared to $85.9 million sold and gains of $559,000 in the corresponding period last year. Lastly, $11.5 million of indirect auto finance loans were sold out of the held for investment portfolio during the current period for a gain of $205,000. No such sales occurred in the same period in the prior year.
Noninterest expense decreased $5.2 million, or 6.3%, for the nine months ended March 31, 2022 as compared to the same period last year, which was primarily a result of a decrease of $3.7 million in prepayment penalties on borrowings, a $1.8 million, or 3.9%, decrease in salaries and benefits expense due to branch closures and lower mortgage banking incentive pay in the period, and a reduction of core deposit amortization expense of $397,000, or 65.6%, partially offset by an increase of $1.1 million, or 117.2%, in marketing and advertising expense driven by reduced media advertising in prior periods as a result of the pandemic as well as current year advertising for newly opened locations.
For the nine months ended March 31, 2022, the Company's income tax expense increased $1.9 million, or 31.2%, to $8.0 million from $6.1 million primarily as a result of higher taxable income. The effective tax rates for the nine months ended March 31, 2022 and 2021 were 21.4% and 21.0%, respectively.
Balance Sheet Review
Total assets and liabilities increased by $17.1 million and $18.5 million to $3.5 billion and $3.1 billion, respectively, at March 31, 2022 as compared to June 30, 2021. Deposits increased by $103.6 million, or 3.5%, which were used to continue paying down borrowings during the period. In addition, excess liquidity from a $50.1 million, or 32.0%, decrease in debt securities available for sale, a $33.7 million, or 1.2%, decrease in loans receivable, a $12.0 million, or 29.9%, decrease in certificates of deposits in other banks, and a $8.3 million, or 8.8%, decrease in loans held for sale was invested in commercial paper which increased by $123.3 million, or 65.0%, during the period.
The decrease in loans was driven by PPP forgiveness of $43.9 million and a $98.5 million, or 12.9%, decrease in retail consumer loans primarily within the one-to-four family loans and indirect auto loan portfolios. This decrease was partially offset by a $108.7 million, or 5.7%, increase in commercial loans (excluding PPP loans) as the Company continues its focus on the growth of the commercial loan segment.
Stockholders' equity decreased $1.4 million, or 0.4%, to $395.1 million at March 31, 2022 as compared to June 30, 2021. Activity within stockholders' equity included $29.6 million in net income, $6.7 million in stock-based compensation expense and option exercises, stock repurchases of $32.3 million, and $4.1 million in cash dividends declared. As of March 31, 2022, the Bank was considered "well capitalized" in accordance with its regulatory capital guidelines and exceeded all regulatory capital requirements.
Asset Quality
The allowance for credit losses on loans was $31.0 million, or 1.15%, of total loans at March 31, 2022 compared to $35.5 million, or 1.30%, of total loans at June 30, 2021. The overall decrease was driven by lower expected credit losses estimated by management based on an improving economic outlook.
The provision for credit losses was a net benefit of $4.0 million for the nine months ended March 31, 2022, compared to a net benefit of $6.2 million for the corresponding period in fiscal year 2021. Net loan charge-offs totaled $19,000 for the nine months ended March 31, 2022, compared to $452,000 for the same period last year. Net charge-offs as a percentage of average loans were 0.00% for the nine months ended March 31, 2022 compared to 0.02% for the corresponding period last year.
Nonperforming assets decreased by $7.0 million, or 54.6%, to $5.8 million, or 0.16%, of total assets at March 31, 2022 compared to $12.8 million, or 0.36% of total assets at June 30, 2021. The significant decrease from June 30, 2021 was primarily a result of the payoff of two commercial real estate loan relationships totaling $5.1 million during the nine month period. Nonperforming assets included $5.8 million in nonaccruing loans and no REO at March 31, 2022, compared to $12.6 million and $188,000 in nonaccruing loans and REO, respectively, at June 30, 2021. Nonperforming loans to total loans was 0.22% at March 31, 2022 and 0.46% at June 30, 2021.
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As of March 31, 2022, the Company had no loans with full principal and interest payment deferrals related to COVID-19 which had been granted prior to January 1, 2022, compared to $107,000 at June 30, 2021. All loans placed on full payment deferral during the pandemic have come out of deferral and borrowers are either making regular loan payments or interest-only payments. As of March 31, 2022, the Company had $9.6 million in commercial loan deferrals on interest-only payments compared to $78.9 million at June 30, 2021.
The ratio of classified assets to total assets decreased to 0.61% at March 31, 2022 from 0.76% at June 30, 2021. Classified assets decreased $5.0 million, or 18.5%, to $21.7 million at March 31, 2022 compared to $26.7 million at June 30, 2021 primarily due to the payoff of two commercial real estate loan relationships discussed above.
About HomeTrust Bancshares, Inc.
HomeTrust Bancshares, Inc. is the holding company for the Bank. As of March 31, 2022, the Company had assets of $3.5 billion. The Bank, founded in 1926, is a North Carolina state chartered, community-focused financial institution committed to providing value added relationship banking with over 30 locations as well as online/mobile channels. Locations include: North Carolina (including the Asheville metropolitan area, the "Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville), East Tennessee (including Kingsport/Johnson City, Knoxville, and Morristown) and Southwest Virginia (including the Roanoke Valley).
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements often include words such as "believe," "expect," "anticipate," "estimate," and "intend" or future or conditional verbs such as "will," "would," "should," "could," or "may." Forward-looking statements are not historical facts but instead represent management's current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of the Company's control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. Factors that could cause the Company's actual results to differ materially from those described in the forward-looking statements include: the effect of the COVID-19 pandemic, including on the Company's credit quality and business operations, as well as its impact on general economic and financial market conditions and other uncertainties resulting from the COVID-19 pandemic, such as the extent and duration of the impact on public health, the U.S. and global economies, and consumer and corporate customers, including economic activity, employment levels and market liquidity; increased competitive pressures; changes in the interest rate environment; changes in general economic conditions and conditions within the securities markets; legislative and regulatory changes; and other factors described in the Company's latest annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission - which are available on the Company's website at www.htb.com and on the SEC's website at www.sec.gov. These risks could cause the Company's actual results for fiscal 2022 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, the Company and could negatively affect its operating and stock performance. Any of the forward-looking statements that the Company makes in this press release or the documents they file with or furnish to the SEC are based upon management's beliefs and assumptions at the time they are made and may turn out to be wrong because of inaccurate assumptions they might make, because of the factors described above or because of other factors that they cannot foresee. The Company does not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

WEBSITE: WWW.HTB.COM
Contact:
Dana L. Stonestreet – Chairman and Chief Executive Officer
C. Hunter Westbrook – President and Chief Operating Officer
Tony J. VunCannon – Executive Vice President, Chief Financial Officer, Corporate Secretary and Treasurer
828-259-3939




















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Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)
March 31, 2022December 31, 2021September 30, 2021
June 30, 2021(1)
March 31, 2021
Assets
Cash$19,783 $20,586 $22,431 $22,312 $24,621 
Interest-bearing deposits32,267 14,240 20,142 28,678 139,474 
Cash and cash equivalents52,050 34,826 42,573 50,990 164,095 
Commercial paper312,918 254,157 196,652 189,596 238,445 
Certificates of deposit in other banks28,125 34,002 35,495 40,122 42,015 
Debt securities available for sale, at fair value106,315 121,851 124,576 156,459 162,417 
Other investments, at cost23,040 22,117 20,891 23,710 28,899 
Loans held for sale85,263 102,070 105,161 93,539 86,708 
Total loans, net of deferred loan fees and costs2,699,538 2,696,072 2,719,642 2,733,267 2,690,153 
Allowance for credit losses - loans(31,034)(30,933)(34,406)(35,468)(36,059)
Loans, net2,668,504 2,665,139 2,685,236 2,697,799 2,654,094 
Premises and equipment, net69,629 69,461 68,568 70,909 70,886 
Accrued interest receivable7,980 8,200 8,429 7,933 8,271 
Real estate owned ("REO")— 45 45 188 143 
Deferred income taxes, net12,494 12,019 15,722 16,901 16,889 
Bank owned life insurance ("BOLI")94,740 94,209 93,679 93,108 93,877 
Goodwill25,638 25,638 25,638 25,638 25,638 
Core deposit intangibles, net135 185 250 343 473 
Other assets54,954 58,900 58,445 57,488 55,763 
Total assets$3,541,785 $3,502,819 $3,481,360 $3,524,723 $3,648,613 
Liabilities and stockholders' equity 
Liabilities 
Deposits$3,059,157 $2,998,691 $2,987,284 $2,955,541 $2,908,478 
Borrowings30,000 48,000 40,000 115,000 275,000 
Other liabilities57,497 54,382 57,565 57,663 58,683 
Total liabilities3,146,654 3,101,073 3,084,849 3,128,204 3,242,161 
Stockholders' equity 
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding— — — — — 
Common stock, $0.01 par value, 60,000,000 shares authorized (2)
160 163 163 167 167 
Additional paid in capital136,181 147,552 151,425 160,582 162,010 
Retained earnings265,609 258,986 249,331 240,075 248,767 
Unearned Employee Stock Ownership Plan ("ESOP") shares(5,422)(5,555)(5,687)(5,819)(5,951)
Accumulated other comprehensive income (loss)(1,397)600 1,279 1,514 1,459 
Total stockholders' equity395,131 401,746 396,511 396,519 406,452 
Total liabilities and stockholders' equity$3,541,785 $3,502,819 $3,481,360 $3,524,723 $3,648,613 
_________________________________
(1)Derived from audited financial statements.
(2)Shares of common stock issued and outstanding were 15,978,262 at March 31, 2022; 16,303,461 at December 31, 2021; 16,307,658 at September 30, 2021; 16,636,483 at June 30, 2021; and 16,655,347 at March 31, 2021.
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Consolidated Statements of Income (Unaudited)
 Three Months EndedNine Months Ended
(Dollars in thousands)
March 31, 2022December 31, 2021
March 31, 2021
March 31, 2022March 31, 2021
Interest and dividend income
Loans$26,616 $26,929 $27,629 $81,440 $84,564 
Commercial paper and interest-bearing deposits563 468 611 $1,362 2,106 
Debt securities available for sale384 411 496 1,319 1,528 
Other investments632 680 585 1,867 1,729 
Total interest and dividend income28,195 28,488 29,321 85,988 89,927 
Interest expense  
Deposits1,151 1,305 1,996 4,028 7,596 
Borrowings4 15 1,632 45 5,007 
Total interest expense1,155 1,320 3,628 4,073 12,603 
Net interest income27,040 27,168 25,693 81,915 77,324 
Provision (benefit) for credit losses(45)(2,500)(4,100)(4,005)(6,180)
Net interest income after provision (benefit) for credit losses27,085 29,668 29,793 85,920 83,504 
Noninterest income  
Service charges and fees on deposit accounts2,216 2,513 2,194 7,101 6,707 
Loan income and fees752 805 636 2,536 1,679 
Gain on sale of loans held for sale2,969 3,901 4,881 10,927 11,929 
BOLI income492 490 508 1,500 1,551 
Operating lease income1,661 1,718 1,432 4,920 4,107 
Other857 753 1,027 2,496 2,688 
Total noninterest income8,947 10,180 10,678 29,480 28,661 
Noninterest expense  
Salaries and employee benefits14,730 14,872 15,784 44,882 46,691 
Occupancy expense, net2,483 2,401 2,456 7,201 7,010 
Computer services2,455 2,369 2,581 7,148 7,108 
Telephone, postage, and supplies686 735 812 2,133 2,345 
Marketing and advertising573 832 319 2,110 971 
Deposit insurance premiums412 302 363 1,280 1,361 
REO related expense, net220 116 84 478 462 
Core deposit intangible amortization50 65 165 208 605 
Prepayment penalties on borrowings— — 3,656 — 3,656 
Other4,190 4,217 4,286 12,285 12,740 
Total noninterest expense25,799 25,909 30,506 77,725 82,949 
Net income before income taxes10,233 13,939 9,965 37,675 29,216 
Income tax expense2,210 2,861 2,096 8,047 6,133 
Net income$8,023 $11,078 $7,869 $29,628 $23,083 

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Per Share Data
Three Months EndedNine Months Ended
March 31, 2022December 31, 2021
March 31, 2021
March 31, 2022March 31, 2021
Net income per common share:(1)
Basic$0.51 $0.70 $0.49 $1.87 $1.42 
Diluted$0.51 $0.68 $0.48 $1.84 $1.40 
Average shares outstanding:
Basic15,523,813 15,632,283 15,979,590 15,666,093 16,139,059 
Diluted15,793,012 15,989,606 16,485,718 15,997,377 16,339,130 
Book value per share at end of period$24.73 $24.64 $24.40 $24.73 $24.40 
Tangible book value per share at end of period (2)
$23.12 $23.06 $22.84 $23.13 $22.84 
Cash dividends declared per common share$0.09 $0.09 $0.08 $0.26 $0.23 
Total shares outstanding at end of period15,978,262 16,303,461 16,655,347 15,978,262 16,655,347 
_________________________________
(1)Basic and diluted net income per common share have been prepared in accordance with the two-class method.
(2)See Non-GAAP reconciliation tables below for adjustments.

Selected Financial Ratios and Other Data
Three Months EndedNine Months Ended
March 31, 2022December 31, 2021
March 31, 2021
March 31, 2022
March 31, 2021
Performance ratios: (1)
Return on assets (ratio of net income to average total assets)0.92 %1.24 %0.84 %1.12 %0.83 %
Return on equity (ratio of net income to average equity)8.15 11.02 7.78 9.91 7.64 
Tax equivalent yield on earning assets(2)
3.54 3.49 3.44 3.54 3.51 
Rate paid on interest-bearing liabilities0.20 0.22 0.54 0.23 0.62 
Tax equivalent average interest rate spread (2)
3.34 3.27 2.90 3.31 2.89 
Tax equivalent net interest margin(2) (3)
3.39 3.33 3.02 3.38 3.02 
Average interest-earning assets to average interest-bearing liabilities
137.72 139.06 127.59 138.24 126.60 
Noninterest expense to average total assets2.97 2.91 3.25 2.94 2.98 
Efficiency ratio71.69 69.37 83.87 69.77 78.26 
Efficiency ratio - adjusted (4)
71.06 68.81 73.17 69.19 74.16 
_________________________________
(1)Ratios are annualized where appropriate.
(2)The weighted average rate for municipal leases is adjusted for a 24% combined federal and state tax rate since the interest from these leases is tax exempt.
(3)Net interest income divided by average interest-earning assets.
(4)See Non-GAAP reconciliation tables below for adjustments.
7

Three Months Ended
March 31, 2022December 31, 2021September 30, 2021
June 30, 2021(1)
March 31, 2021
Asset quality ratios:
Nonperforming assets to total assets(1)
0.16 %0.18 %0.19 %0.36 %0.37 %
Nonperforming loans to total loans(1)
0.22 0.23 0.25 0.46 0.49 
Total classified assets to total assets0.61 0.65 0.65 0.76 0.76 
Allowance for credit losses to nonperforming loans(1)
534.06 500.70 510.63 281.38 272.64 
Allowance for credit losses to total loans1.15 1.15 1.27 1.30 1.34 
Net charge-offs (recoveries) to average loans (annualized)
(0.11)0.15 (0.04)(0.04)(0.03)
Capital ratios:
Equity to total assets at end of period11.16 %11.47 %11.39 %11.25 %11.14 %
Tangible equity to total tangible assets(2)
10.51 10.81 10.73 10.59 10.50 
Average equity to average assets11.32 11.28 11.27 11.06 10.79 
_________________________________
(1)Nonperforming assets include nonaccruing loans, consisting of certain restructured loans, and REO. There were no accruing loans more than 90 days past due at the dates indicated. At March 31, 2022, there were $1.8 million of restructured loans included in nonaccruing loans and $2.9 million, or 50.6% of nonaccruing loans were current on their loan payments.
(2)See Non-GAAP reconciliation tables below for adjustments.


8

Average Balance Sheet Data
Three Months Ended
(Dollars in thousands)March 31, 2022
March 31, 2021
Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)
Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)
Assets:
Interest-earning assets:
Loans receivable(1)(2)
$2,791,650 $26,936 3.91 %$2,779,094 $27,955 4.08 %
Commercial paper and deposits in other banks342,878 563 0.67 522,256 611 0.47 
Debt securities available for sale111,874 384 1.39 153,871 496 1.31 
Other interest-earning assets(3)
22,614 632 11.33 39,184 585 6.05 
Total interest-earning assets3,269,016 28,515 3.54 %3,494,405 29,647 3.44 %
Other assets258,126 258,858 
Total assets$3,527,142 $3,753,263 
Liabilities and equity:
Interest-bearing deposits:
Interest-bearing checking accounts650,072 310 0.19 %637,381 391 0.25 %
Money market accounts1,020,734 340 0.14 907,228 373 0.17 
Savings accounts227,936 40 0.07 212,809 39 0.08 
Certificate accounts441,314 461 0.42 516,221 1,193 0.94 
Total interest-bearing deposits2,340,056 1,151 0.20 2,273,639 1,996 0.36 
Borrowings33,599 4 0.05 465,111 1,632 1.42 
  Total interest-bearing liabilities2,373,655 1,155 0.20 %2,738,750 3,628 0.54 %
Noninterest-bearing deposits714,753 553,045 
Other liabilities39,374 56,655 
Total liabilities3,127,782 3,348,450 
Stockholders' equity399,360 404,813 
Total liabilities and stockholders' equity$3,527,142 $3,753,263 
Net earning assets$895,361  $755,655 
Average interest-earning assets to
average interest-bearing liabilities137.72 %127.59 %
Tax-equivalent:
Net interest income$27,360 $26,019 
Interest rate spread3.34 %2.90 %
Net interest margin(4)
3.39 %3.02 %
Non-tax-equivalent:
Net interest income$27,040 $25,693 
Interest rate spread3.30 %2.87 %
Net interest margin(4)
3.35 %2.98 %
_________________________________
(1)The average loans receivable balances include loans held for sale and nonaccruing loans.
(2)Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $320 and $326 for the three months ended March 31, 2022 and 2021, respectively, calculated based on a combined federal and state tax rate of 24%.
(3)The average other interest-earning assets consist of FRB stock, FHLB stock, and SBIC investments.
(4)Net interest income divided by average interest-earning assets.
9

Nine Months Ended
(Dollars in thousands)March 31, 2022March 31, 2021
Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)
Average
Balance
Outstanding
Interest
Earned/
Paid(2)
Yield/
Rate(2)

Assets:
Interest-earning assets:
Loans receivable(1)(2)
$2,810,205 $82,377 3.90 %$2,826,886 $85,505 4.03 %
Commercial paper and deposits in other banks
311,457 1,362 0.58 454,609 2,106 0.62 
Debt securities available for sale124,053 1,319 1.42 131,332 1,528 1.55 
Other interest-earning assets(3)
22,218 1,867 11.19 39,140 1,729 5.88 
Total interest-earning assets3,267,933 86,925 3.54 %3,451,967 90,868 3.51 %
Other assets259,570 256,026 
Total assets$3,527,503 $3,707,993 
Liabilities and equity:
Interest-bearing liabilities:
Interest-bearing checking accounts640,194 1,038 0.22 %593,815 1,142 0.26 %
Money market accounts1,002,542 1,056 0.14 860,170 1,337 0.21 
Savings accounts224,664 120 0.07 206,478 114 0.07 
Certificate accounts447,623 1,814 0.54 594,565 5,003 1.12 
Total interest-bearing deposits2,315,023 4,028 0.23 2,255,028 7,596 0.45 
Borrowings48,894 45 0.12 471,716 5,007 1.41 
  Total interest-bearing liabilities
2,363,917 4,073 0.23 %2,726,744 12,603 0.62 %
Noninterest-bearing deposits719,872 522,406 
Other liabilities45,443 56,141 
Total liabilities3,129,232 3,305,291 
Stockholders' equity398,271 402,702 
Total liabilities and stockholders' equity$3,527,503 $3,707,993 
Net earning assets$904,016 $725,223 
Average interest-earning assets to
average interest-bearing liabilities138.24 %126.60 %
Tax-equivalent:
Net interest income$82,852 $78,265 
Interest rate spread3.31 %2.89 %
Net interest margin(4)
3.38 %3.02 %
Non-tax-equivalent:
Net interest income$81,915 $77,323 
Interest rate spread 3.28 %2.85 %
Net interest margin(4)
3.34 %2.98 %
_________________________________
(1)The average loans receivable balances include loans held for sale and nonaccruing loans.
(2)Interest income used in the average interest earned and yield calculation includes the tax equivalent adjustment of $937 and $942 for the nine months ended March 31, 2022 and 2021, respectively, calculated based on a combined federal and state tax rate of 24%.
(3)The average other interest-earning assets consist of FRB stock, FHLB stock, and SBIC investments.
(4)Net interest income divided by average interest-earning assets.
10

Loans
(Dollars in thousands)
March 31, 2022December 31, 2021September 30, 2021
June 30, 2021(1)
March 31, 2021
Commercial loans:
Commercial real estate$1,102,184 $1,113,330 $1,132,764 $1,142,276 $1,088,178 
Construction and development251,668 226,439 187,900 179,427 162,820 
Commercial and industrial167,342 162,396 153,612 141,341 140,579 
Equipment finance378,629 367,008 341,995 317,920 291,950 
Municipal leases130,260 131,078 142,100 140,421 129,141 
PPP loans2,756 19,044 28,762 46,650 73,090 
Total commercial loans2,032,839 2,019,295 1,987,133 1,968,035 1,885,758 
Retail consumer loans
     One-to-four family347,945 356,850 384,901 406,549 430,001 
     HELOCs - originated128,445 128,189 129,791 130,225 131,867 
     HELOCs - purchased26,911 30,795 33,943 38,976 46,086 
     Construction and land/lots72,735 69,253 69,835 66,027 68,118 
     Indirect auto finance83,903 84,581 106,184 115,093 119,656 
     Consumer6,760 7,109 7,855 8,362 8,667 
Total retail consumer loans666,699 676,777 732,509 765,232 804,395 
Total loans, net of deferred loan fees and costs2,699,538 2,696,072 2,719,642 2,733,267 2,690,153 
     Allowance for credit losses - loans(31,034)(30,933)(34,406)(35,468)(36,059)
Loans, net$2,668,504 $2,665,139 $2,685,236 $2,697,799 $2,654,094 

Deposits
(Dollars in thousands)
March 31, 2022December 31, 2021September 30, 2021
June 30, 2021(1)
March 31, 2021
Core deposits:
    Noninterest-bearing accounts$704,344 $677,159 $711,764 $636,414 $528,711 
    NOW accounts652,577 644,343 621,675 644,958 727,240 
    Money market accounts1,026,595 1,010,901 987,650 975,001 927,519 
    Savings accounts232,831 224,474 220,614 226,391 221,537 
Total core deposits2,616,347 2,556,877 2,541,703 2,482,764 2,405,007 
Certificates of deposit442,810 441,814 445,581 472,777 503,471 
Total deposits$3,059,157 $2,998,691 $2,987,284 $2,955,541 $2,908,478 

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Non-GAAP Reconciliations
In addition to results presented in accordance with generally accepted accounting principles utilized in the United States ("GAAP"), this earnings release contains certain non-GAAP financial measures, which include: the efficiency ratio; tangible book value; tangible book value per share; tangible equity to tangible assets ratio; and the ratio of the allowance for credit losses to total loans excluding PPP loans. The Company believes these non-GAAP financial measures and ratios as presented are useful for both investors and management to understand the effects of certain items and provide an alternative view of its performance over time and in comparison to its competitors. These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for total stockholders' equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies. 

Set forth below is a reconciliation to GAAP of the Company's efficiency ratio:
Three Months EndedNine Months Ended
(Dollars in thousands)March 31, 2022December 31, 2021March 31, 2021March 31, 2022March 31, 2021
Noninterest expense$25,799 $25,909 $30,506 $77,725 $82,949 
Less: prepayment penalties on borrowings— — 3,656 — 3,656 
Noninterest expense$25,799 $25,909 $26,850 $77,725 $79,293 
Net interest income$27,040 $27,168 $25,693 $81,915 $77,324 
Plus: noninterest income8,947 10,180 10,678 29,480 28,661 
Plus: tax equivalent adjustment320 307 326 937 942 
Net interest income plus noninterest income – adjusted$36,307 $37,655 $36,697 $112,332 $106,927 
Efficiency ratio71.69 %69.37 %83.87 %69.77 %78.26 %
Efficiency ratio - adjusted71.06 %68.81 %73.17 %69.19 %74.16 %

Set forth below is a reconciliation to GAAP of tangible book value and tangible book value per share:

(Dollars in thousands, except per share data)March 31, 2022December 31, 2021September 30, 2021
June 30, 2021(1)
March 31, 2021
Total stockholders' equity$395,131 $401,746 $396,511 $396,519 $406,452 
Less: goodwill, core deposit intangibles, net of taxes
25,742 25,780 25,830 25,902 26,002 
Tangible book value$369,389 $375,966 $370,681 $370,617 $380,450 
Common shares outstanding15,978,262 16,303,461 16,307,658 16,636,483 16,655,347 
Tangible book value per share$23.12 $23.06 $22.73 $22.28 $22.84 
Book value per share$24.73 $24.64 $24.31 $23.83 $24.40 

Set forth below is a reconciliation to GAAP of tangible equity to tangible assets:

(Dollars in thousands)March 31, 2022December 31, 2021September 30, 2021
June 30, 2021(1)
March 31, 2021
Tangible equity(1)
$369,389 $375,966 $370,681 $370,617 $380,450 
Total assets3,541,785 3,502,819 3,481,360 3,524,723 3,648,613 
Less: goodwill, core deposit intangibles, net of taxes
25,742 25,780 25,830 25,902 26,002 
Total tangible assets$3,516,043 $3,477,039 $3,455,530 $3,498,821 $3,622,611 
Tangible equity to tangible assets10.51 %10.81 %10.73 %10.59 %10.50 %
_________________________________
(1)Tangible equity (or tangible book value) is equal to total stockholders' equity less goodwill and core deposit intangibles, net of related deferred tax liabilities.


12