First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2020

JEFFERSONVILLE, Ind., Feb. 01, 2021 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $9.9 million, or $4.16 per diluted share, for the quarter ended December 31, 2020 compared to net income of $3.4 million, or $1.44 per diluted share, for the quarter ended December 31, 2019, resulting in an increase of 189% on a per share basis.

Commenting on the Company’s performance, Larry W. Myers, President and CEO stated: “Because of the tireless dedication of our experienced staff who continually serve the needs of our customers and communities during these very challenging times, we continue to deliver meaningful value to our shareholders. We continue to experience strong earnings, asset and deposit growth; resiliency of asset quality; stability of the net interest margin; and substantial increases to stockholders’ equity. The core bank and ancillary business lines continue to perform exceptionally well. I have confidence that the Company is well-positioned to continue thriving during this challenging environment and I thank our staff for their continued efforts during such.”

On December 31, 2020, the Bank completed the acquisition of the minority interest in Q2 Business Capital, LLC (“Q2”), which specializes in the origination, sale and servicing of U.S. Small Business Administration (“SBA”) loans. Effective January 1, 2021, Q2 is a wholly-owned subsidiary of the Bank.

COVID-19 Pandemic Loan Information

We continue to assist customers experiencing COVID-19 pandemic related hardships by approving payment extensions or loan forbearance agreements, and by waiving or refunding certain fees. During the initial onset of the COVID-19 pandemic, we proactively contacted all commercial borrowers and offered uniform payment extensions or loan forbearance agreements, while requests from consumer borrowers were reviewed and approved on a case-by-case basis. Payment extensions or loan forbearance agreements were generally for periods of three months and included deferment of both principal and interest. Following the expiration of the initial payment extensions or loan forbearance agreements, we entertain requests for extended periods on a case-by-case basis, which will generally include deferment of only the principal portion of payments for a period of up to three months. The table below summarizes payment extensions or loan forbearance agreements that were in effect at January 22, 2021.

	Number of Loans	Outstanding Principal Balance (1)		SBA- Guaranteed Principal Balance
(Dollars in thousands)
Residential real estate	4	$ 315			$ -
Commercial real estate	4		10,788		-
SBA commercial real estate	10		7,444		3,063
Multifamily	1		3,590		-
SBA commercial business	15		4,134		-
Consumer	1		30		-
Total	35	$ 26,301		$ 3,063

(1) The outstanding principal balance includes amounts guaranteed by the SBA.

As a result of the COVID-19 pandemic, the leisure and hospitality industries carry a higher degree of credit risk. Based on our evaluation of the allowance for loan losses at December 31, 2020, management believes sufficient reserves are in place to cover estimated losses at that date. However, as the pandemic continues, additional losses could be recognized and additional provisions for loan losses may be required.

At December 31, 2020, the outstanding principal balance of loans secured by restaurant related collateral was $168.2 million, of which $74.9 million is fully guaranteed by the SBA (including $74.5 million of PPP loans) and $83.8 million is secured by commercial real estate where the collateral property is leased to national-brand, investment-grade tenants. Two of the SBA commercial loans included in the preceding table totaling $361,000 were secured by restaurant related collateral.

At December 31, 2020, the outstanding principal balances of loans secured by hotel real estate was $17.4 million, of which $3.7 million is fully guaranteed by the SBA (including $606,000 of PPP loans). Three of the commercial real estate and two of the SBA commercial real loans included in the preceding table totaling $9.9 million and $5.2 million, respectively, were secured by hotel real estate.

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

The Company participated in the SBA’s Paycheck Protection Program (“PPP”), which was originally authorized by the CARES Act. At December 31, 2020, the outstanding principal balance of PPP loans was $178.5 million and net deferred loan fees related to PPP loans was approximately $2.7 million, which will be recognized over the life of the loans and as borrowers are granted forgiveness. The Company is also participating in the second round of the PPP, which was authorized by the CRRSAA and is currently in its early stages.

Results of Operations for the Three Months Ended December 31, 2020 and 2019

Net interest income increased $3.0 million, or 27.3%, to $13.7 million for the quarter ended December 31, 2020 as compared to the same quarter in 2019. The increase in net interest income was due to a $2.4 million increase in interest income and a $588,000 decrease in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $460.0 million, from $1.17 billion for 2019 to $1.63 billion for 2020, partially offset by a decrease in the weighted-average tax-equivalent yield, from 4.79% for 2019 to 4.03% for 2020. The decrease in the weighted-average tax-equivalent yield for 2020 is primarily due to an increase in the average balance of PPP loans of $179.3 million as well as decreasing market interest rates on loans. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 1.23% for 2019 to 0.70% for 2020, partially offset by an increase in the average balance of interest-bearing liabilities of $375.7 million, from $935.1 million for 2019 to $1.31 billion for 2020. The decrease in the average cost of interest-bearing liabilities for 2020 was due primarily to decreasing market interest rates on deposits and Federal Home Loan Bank (“FHLB”) borrowings, as well as the Company’s participation in the Federal Reserve Bank’s PPP Liquidity Facility (“PPPLF”), which carries a fixed interest rate of 0.35% and is secured by the Company’s PPP loans.

The Company recognized $668,000 in provision for loan losses for the quarter ended December 31, 2020, compared to $505,000 for the comparable quarter in 2019. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $1.2 million, from $13.6 million at September 30, 2020 to $12.4 million at December 31, 2020. The Company recognized net charge-offs of $570,000 for the quarter ended December 31, 2020, of which $506,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $15,000 for the same quarter in 2019. The increase in the provision for loan losses for 2020 was primarily due to increased charge-offs during the quarter as well as changes to qualitative factors within the allowance for loan losses calculation related to economic uncertainties surrounding COVID-19.

Noninterest income increased $28.0 million for the quarter ended December 31, 2020 as compared to the same quarter in 2019. The increase was primarily due to increases in mortgage banking income of $26.4 million and net gains on sales of SBA loans of $506,000. The increase in mortgage banking income was 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 Statements of Income Information” table at the end of this release.

Noninterest expense increased $20.1 million for the quarter ended December 31, 2020 as compared to the same quarter in 2019. The increase was primarily due to an increase in compensation and benefits of $16.0 million and increases in other operating expense and advertising expense of $1.5 million and $845,000, respectively. The increase in compensation and benefits expense is attributable to the addition of new employees primarily to support the growth of the Company’s mortgage banking and SBA lending activities, routine salary and benefits adjustments, and increased incentive compensation primarily as a result of the performance of the Company’s mortgage banking segment. The increases in other operating expense and advertising expense were primarily due to increased volume from the mortgage banking segment.

The Company recognized income tax expense of $4.5 million for the quarter ended December 31, 2020, as compared to income tax expense of $638,000 for the same quarter in 2019. The effective tax rate increased from 15.0% for the quarter ended December 31, 2019 to 30.5% for the quarter ended December 31, 2020 primarily due to increases in pre-tax income and nondeductible executive compensation.

Comparison of Financial Condition at December 31, 2020 and September 30, 2020

Total assets increased $108.3 million, from $1.76 billion at September 30, 2020 to $1.87 billion at December 31, 2020. Net loans increased $24.6 million during the quarter ended December 31, 2020, primarily due to continued growth in the single tenant net lease commercial real estate loan portfolio. Residential mortgage loans held for sale and SBA loans held for sale also increased by $66.8 million and $4.9 million, respectively, during the quarter ended December 31, 2020 due to increased production from the mortgage banking and SBA lending segments. Total liabilities increased $100.1 million primarily due to an increase of $73.2 million in total deposits and an increase of $29.2 million in FHLB borrowings.
                
Common stockholders’ equity increased $8.5 million, from $157.3 million at September 30, 2020 to $165.7 million at December 31, 2020, due primarily to increases in retained net income and net unrealized gains on available for sale securities included in accumulated other comprehensive income of $9.5 million and $680,000, respectively, partially offset by a decrease in additional paid in capital of $1.7 million. The decrease in additional paid in capital was due to the acquisition of the minority interest in Q2. At December 31, 2020 and September 30, 2020, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

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

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

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including the duration, extent and severity of the COVID-19 pandemic, including its effect on our customers, service providers and on the economy and financial markets in general, changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.

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

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

FIRST SAVINGS FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
OPERATING DATA:	Three Months Ended
(In thousands, except share and per share data)	December 31,
		2020				2019
Total interest income	$	16,026			$	13,661
Total interest expense		2,287				2,875
Net interest income		13,739				10,786
Provision for loan losses		668				505
Net interest income after provision for loan losses		13,071				10,281
Total noninterest income		46,183				18,232
Total noninterest expense		44,402				24,272
Income before income taxes		14,852				4,241
Income tax expense		4,527				638
Net income		10,325				3,603
Less: Net income attributable to noncontrolling interests		402				164
Net income attributable to the Company	$	9,923			$	3,439
Net income per share, basic	$	4.19			$	1.47
Weighted average shares outstanding, basic		2,367,061				2,340,619
Net income per share, diluted	$	4.16			$	1.44
Weighted average shares outstanding, diluted		2,384,702				2,382,754
Performance ratios (annualized):
Return on average assets		2.23	%			1.09	%
Return on average common stockholders' equity		24.52	%			11.24	%
Interest rate spread (tax equivalent basis)		3.33	%			3.56	%
Net interest margin (tax equivalent basis)		3.46	%			3.80	%
Efficiency ratio		74.10	%			83.64	%
FINANCIAL CONDITION DATA:	December 31,				September 30,				Increase
(In thousands, except per share data)		2020				2020			(Decrease)
Total assets	$	1,872,911			$	1,764,625			$	108,286
Cash and cash equivalents		35,392				33,726				1,666
Investment securities		205,661				204,067				1,594
Loans held for sale		357,242				285,525				71,717
Gross loans (1)		1,131,832				1,107,089				24,743
Allowance for loan losses		17,124				17,026				98
Interest earning assets		1,718,994				1,620,831				98,163
Goodwill		9,848				9,848				-
Core deposit intangibles		1,149				1,202				(53	)
Loan servicing rights		35,232				25,451				9,781
Noninterest-bearing deposits		272,241				242,673				29,568
Interest-bearing deposits (2)		849,079				805,403				43,676
Federal Home Loan Bank borrowings		340,092				310,858				29,234
Federal Reserve PPPLF borrowings		172,772				174,834				(2,062	)
Total liabilities		1,707,166				1,607,060				100,106
Stockholders' equity, net of noncontrolling interests		165,745				157,272				8,473
Book value per share	$	69.79			$	66.21			$	3.61
Tangible book value per share (3)		65.16				61.56				3.63
Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	3,709			$	3,709			$	-
Nonaccrual loans - unguaranteed		8,698				9,906				(1,208	)
Total nonaccrual loans	$	12,407			$	13,615			$	(1,208	)
Accruing loans past due 90 days		-				-				-
Total non-performing loans		12,407				13,615				(1,208	)
Foreclosed real estate		315				-				315
Troubled debt restructurings classified as performing loans		1,950				3,069				(1,119	)
Total non-performing assets	$	14,672			$	16,684			$	(2,012	)
Asset quality ratios:
Allowance for loan losses as a percent of total gross loans		1.51	%			1.54	%			(0.02	%)
Allowance for loan losses as a percent of total gross loans, excluding PPP loans (4)		1.80	%			1.84	%			(0.04	%)
Allowance for loan losses as a percent of nonperforming loans		138.02	%			125.05	%			12.97	%
Nonperforming loans as a percent of total gross loans		1.10	%			1.23	%			(0.13	%)
Nonperforming assets as a percent of total assets		0.78	%			0.95	%			(0.16	%)
(1) Includes $178.5 million and $180.6 million of PPP loans at December 31, 2020 and September 30, 2020, respectively.
(2) Includes $147.5 million and $132.1 million of brokered and reciprocal certificates of deposit at December 31, 2020 and September 30, 2020, respectively.
(3) See reconciliation of GAAP and Non-GAAP financial measures for additional information relating to calculation of this item.
(4) Denominator excludes PPP loans, which are fully guaranteed by the SBA. This ratio is non-GAAP, but is believed by management to be meaningful because it provides a comparable ratio
after eliminating PPP loans.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's
performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to
evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the
Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
Tangible Book Value Per Share	December 31,				September 30,				Increase
(In thousands, except share and per share data)		2020				2020			(Decrease)
Stockholders' equity, net of noncontrolling interests (GAAP)	$	165,745			$	157,272			$	8,473
Less: goodwill and core deposit intangibles		(10,997	)			(11,050	)			53
Tangible equity (non-GAAP)	$	154,748			$	146,222			$	109,789
Outstanding common shares		2,374,927				2,375,324				(397	)
Tangible book value per share (non-GAAP)	$	65.16			$	61.56			$	3.60
Book value per share (GAAP)	$	69.79			$	66.21			$	3.58
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except per share data)		2020				2020				2020				2020				2019
Total cash and cash equivalents	$	35,392			$	33,726			$	27,544			$	22,603			$	41,327
Total investment securities		205,661				204,067				205,960				186,873				179,991
Total loans held for sale		357,242				285,525				210,077				163,927				110,523
Total loans, net of allowance for loan losses		1,114,708				1,090,063				1,081,381				877,276				851,700
PPP loans		178,499				180,561				180,536				-				-
Loan servicing rights		35,232				25,451				13,563				6,946				6,258
Total assets		1,872,911				1,764,625				1,661,281				1,368,252				1,292,573
Total deposits	$	1,121,320			$	1,048,076			$	982,870			$	937,306			$	885,598
Federal Home Loan Bank borrowings		340,092				310,858				298,622				270,000				239,566
Federal Reserve PPPLF borrowings		172,772				174,834				174,834				-				-
Stockholders' equity, net of noncontrolling interests	$	165,745			$	157,272			$	142,362			$	116,659			$	123,810
Noncontrolling interests in subsidiary		-				293				(214	)			(414	)			368
Total equity		165,745				157,565				142,148				116,245				124,178
Outstanding common shares		2,374,927				2,375,324				2,375,324				2,375,324				2,357,369
	Three Months Ended
Summarized Consolidated Statements of Income	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except per share data)		2020				2020				2020				2020				2019
Total interest income	$	16,026			$	15,765			$	14,719			$	13,554			$	13,661
Total interest expense		2,287				2,337				2,543				2,783				2,875
Net interest income		13,739				13,428				12,176				10,771				10,786
Provision for loan losses		668				2,772				2,980				1,705				505
Net interest income after provision for loan losses		13,071				10,656				9,196				9,066				10,281
Total noninterest income		46,183				57,024				46,962				11,133				18,232
Total noninterest expense		44,402				44,452				35,009				22,075				24,272
Income (loss) before income taxes		14,852				23,228				21,149				(1,876	)			4,241
Income tax expense (benefit)		4,527				7,257				5,540				(774	)			638
Net income (loss)		10,325				15,971				15,609				(1,102	)			3,603
Less: net income (loss) attributable to noncontrolling interests		402				834				204				(475	)			164
Net income (loss) attributable to the Company	$	9,923			$	15,137			$	15,405			$	(627	)		$	3,439
Net income (loss) per share, basic	$	4.19			$	6.40			$	6.51			$	(0.27	)		$	1.47
Weighted average shares outstanding, basic		2,367,061				2,365,217				2,365,217				2,355,750				2,340,619
Net income (loss) per share, diluted	$	4.16			$	6.39			$	6.51			$	(0.26	)		$	1.44
Weighted average shares outstanding, diluted		2,384,702				2,370,694				2,366,787				2,379,901				2,382,754
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Consolidated Performance Ratios (Annualized)		2020				2020				2020				2020				2019
Return on average assets		2.23	%			3.44	%			4.02	%			(0.19	%)			1.09	%
Return on average equity		25.43	%			43.46	%			48.75	%			(3.51	%)			11.76	%
Return on average common stockholders' equity		24.52	%			41.08	%			47.91	%			(2.00	%)			11.24	%
Net interest margin (tax equivalent basis)		3.46	%			3.40	%			3.52	%			3.68	%			3.80	%
Efficiency ratio		74.10	%			63.10	%			59.20	%			100.78	%			83.64	%
	As of or for the Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Consolidated Asset Quality Ratios		2020				2020				2020				2020				2019
Nonperforming loans as a percentage of total loans		1.10	%			1.23	%			1.26	%			1.55	%			0.64	%
Nonperforming assets as a percentage of total assets		0.78	%			0.95	%			1.17	%			1.45	%			1.00	%
Allowance for loan losses as a percentage of total loans		1.51	%			1.54	%			1.34	%			1.32	%			1.22	%
Allowance for loan losses as a percentage of nonperforming loans		138.02	%			125.05	%			106.01	%			84.67	%			191.18	%
Net charge-offs (recoveries) to average outstanding loans		0.04	%			0.03	%			0.00	%			0.06	%			0.00	%
	Three Months Ended
Segmented Statements of Income Information	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except per share data)		2020				2020				2020				2020				2019
Core Banking Segment:
Net interest income	$	10,861			$	10,512			$	9,645			$	9,035			$	9,012
Provision for loan losses		702				2,232				1,668				216				520
Net interest income after provision for loan losses		10,159				8,280				7,977				8,819				8,492
Noninterest income		1,552				1,779				1,324				1,411				1,391
Noninterest expense		8,112				7,920				7,633				6,720				7,109
Income before income taxes		3,599				2,139				1,668				3,510				2,774
Income tax expense		570				482				276				591				330
Net income attributable to the Company	$	3,029			$	1,657			$	1,392			$	2,919			$	2,444
SBA Lending Segment (Q2):
Net interest income	$	2,147			$	1,959			$	1,584			$	1,151			$	1,217
Provision for loan losses		(34	)			540				1,312				1,489				(15	)
Net interest income (loss) after provision for loan losses		2,181				1,419				272				(338	)			1,232
Noninterest income		1,385				2,828				1,785				1,209				929
Noninterest expense		2,746				2,545				1,642				1,841				1,825
Income (loss) before income taxes		820				1,702				415				(970	)			336
Income tax expense (benefit)		105				217				53				(124	)			43
Net income (loss)		715				1,485				362				(846	)			293
Less: net income (loss) attributable to noncontrolling interests		402				834				204				(475	)			164
Net income (loss) attributable to the Company	$	313			$	651			$	158			$	(371	)		$	129
Mortgage Banking Segment:
Net interest income	$	731			$	957			$	947			$	585			$	557
Provision for loan losses		-				-				-				-				-
Net interest income after provision for loan losses		731				957				947				585				557
Noninterest income		43,246				52,417				43,853				8,513				15,912
Noninterest expense		33,544				33,987				25,734				13,514				15,338
Income (loss) before income taxes		10,433				19,387				19,066				(4,416	)			1,131
Income tax expense (benefit)		3,852				6,558				5,211				(1,241	)			265
Net income (loss) attributable to the Company	$	6,581			$	12,829			$	13,855			$	(3,175	)		$	866
Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking	$	1.28			$	0.70			$	0.59			$	1.24			$	1.04
Net income (loss) per share, basic - SBA Lending (Q2)		0.13				0.28				0.07				(0.16	)			0.06
Net income (loss) per share, basic - Mortgage Banking		2.78				5.42				5.85				(1.35	)			0.37
Total net income (loss) per share, basic	$	4.19			$	6.40			$	6.51			$	(0.27	)		$	1.47
Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	1.27			$	0.70			$	0.59			$	1.23			$	1.03
Net income (loss) per share, diluted - SBA Lending (Q2)		0.13				0.27				0.07				(0.16	)			0.05
Net income (loss) per share, diluted - Mortgage Banking		2.76				5.42				5.85				(1.33	)			0.36
Total net income (loss) per share, diluted	$	4.16			$	6.39			$	6.51			$	(0.26	)		$	1.44
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Expense Detail by Segment	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2020				2020				2020				2020				2019
Core Banking Segment:
Compensation	$	4,127			$	4,250			$	4,219			$	3,535			$	4,015
Occupancy		1,392				1,512				1,239				1,133				1,200
Advertising		177				225				195				151				147
Other		2,416				1,933				1,980				1,901				1,747
Total Noninterest Expense	$	8,112			$	7,920			$	7,633			$	6,720			$	7,109
SBA Lending Segment (Q2):
Compensation	$	2,280			$	1,939			$	1,314			$	1,569			$	1,469
Occupancy		93				116				118				99				89
Advertising		10				6				-				9				5
Other		363				484				210				164				262
Total Noninterest Expense	$	2,746			$	2,545			$	1,642			$	1,841			$	1,825
Mortgage Banking Segment:
Compensation	$	27,455			$	27,092			$	21,363			$	9,803			$	12,336
Occupancy		1,100				1,207				855				757				633
Advertising		2,124				2,011				1,666				1,617				1,314
Other		2,865				3,677				1,850				1,337				1,055
Total Noninterest Expense	$	33,544			$	33,987			$	25,734			$	13,514			$	15,338
	Three Months Ended
Mortgage Banking Noninterest Expense Fixed vs. Variable	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2020				2020				2020				2020				2019
Noninterest Expense - Fixed Expenses	$	13,296			$	11,838			$	8,394			$	6,740			$	5,671
Noninterest Expense - Variable Expenses (5)		20,248				22,149				17,340				6,774				9,667
Total Noninterest Expense	$	33,544			$	33,987			$	25,734			$	13,514			$	15,338
	Three Months Ended
SBA Lending (Q2) Data	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except percentage data)		2020				2020				2020				2020				2019
Final funded loans guaranteed portion sold, SBA	$	14,116			$	25,623			$	16,605			$	16,180			$	10,830
Gross gain on sales of loans, SBA	$	1,698			$	3,094			$	1,771			$	1,597			$	1,066
Weighted average gross gain on sales of loans, SBA		12.03	%			12.08	%			10.67	%			9.87	%			9.84	%
Net gain on sales of loans, SBA (6)	$	1,267			$	2,366			$	1,317			$	1,229			$	761
Weighted average net gain on sales of loans, SBA		8.98	%			9.23	%			7.93	%			7.60	%			7.03	%
	Three Months Ended
Mortgage Banking Data	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except percentage data)		2020				2020				2020				2020				2019
Mortgage originations for sale in the secondary market	$	1,430,628			$	1,526,809			$	1,003,518			$	532,996			$	542,568
Mortgage sales	$	1,349,044			$	1,471,501			$	954,568			$	488,457			$	529,344
Gross gain on sales of loans, mortgage banking	$	47,224			$	53,633			$	31,067			$	14,912			$	13,411
Weighted average gross gain on sales of loans, mortgage banking		3.50	%			3.64	%			3.25	%			3.05	%			2.53	%
Mortgage banking income (7)	$	42,300			$	52,035			$	43,713			$	8,411			$	15,923
(5) Variable expenses include incentive compensation and advertising expenses.
(6) Net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets.
(7) Net of lender credits and other investor expenses, and inclusive of loan fees, gains on mortgage servicing rights, fair value adjustments and gains (losses) on derivative instruments.
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Average Balance Sheets	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands)		2020				2020				2020				2020				2019
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	34,412			$	58,775			$	25,985			$	48,306			$	46,296
Loans, excluding PPP		1,205,278				1,172,547				1,076,376				970,083				935,211
PPP loans		179,316				180,561				114,721				-				-
Investment securities - taxable		42,462				44,026				43,569				46,216				50,132
Investment securities - nontaxable		146,374				145,042				143,702				122,770				120,018
FRB and FHLB stock		17,992				17,293				16,804				14,878				14,149
Total interest-earning assets	$	1,625,834			$	1,618,244			$	1,421,157			$	1,202,253			$	1,165,806
Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	18			$	22			$	37			$	153			$	205
Loans, excluding PPP		13,171				12,924				12,164				11,736				11,724
PPP loans		1,085				1,019				671				-				-
Investment securities - taxable		471				483				502				504				585
Investment securities - nontaxable		1,508				1,507				1,514				1,300				1,278
FRB and FHLB stock		108				144				168				151				154
Total interest income (tax equivalent basis)	$	16,361			$	16,099			$	15,056			$	13,844			$	13,946
Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		0.21	%			0.15	%			0.57	%			1.27	%			1.77	%
Loans, excluding PPP		4.37	%			4.41	%			4.52	%			4.84	%			5.01	%
PPP loans		2.42	%			2.26	%			2.34	%			0.00	%			0.00	%
Investment securities - taxable		4.44	%			4.39	%			4.61	%			4.36	%			4.67	%
Investment securities - nontaxable		4.12	%			4.16	%			4.21	%			4.24	%			4.26	%
FRB and FHLB stock		2.40	%			3.33	%			4.00	%			4.06	%			4.35	%
Total interest-earning assets		4.03	%			3.98	%			4.24	%			4.61	%			4.79	%
Interest-bearing liabilities
Average balances:
Interest-bearing deposits	$	811,016			$	842,363			$	770,402			$	716,051			$	707,518
Fed funds purchased		-				-				1,978				143				-
Federal Home Loan Bank borrowings		306,299				292,876				292,168				248,205				207,851
Federal Reserve PPPLF borrowings		173,701				174,835				74,218				-				-
Subordinated debt and other borrowings		19,803				19,786				19,769				19,752				19,735
Total interest-bearing liabilities	$	1,310,819			$	1,329,860			$	1,158,535			$	984,151			$	935,104
Interest expense:
Interest-bearing deposits	$	936			$	974			$	1,311			$	1,625			$	1,749
Fed funds purchased		-				-				2				-				-
Federal Home Loan Bank borrowings		861				853				846				838				808
Federal Reserve PPPLF borrowings		153				154				66				-				-
Subordinated debt and other borrowings		337				356				318				320				318
Total interest expense	$	2,287			$	2,337			$	2,543			$	2,783			$	2,875
Weighted average cost (annualized):
Interest-bearing deposits		0.46	%			0.46	%			0.68	%			0.91	%			0.99	%
Fed funds purchased		0.00	%			0.00	%			0.40	%			0.00	%			0.00	%
Federal Home Loan Bank borrowings		1.12	%			1.16	%			1.16	%			1.35	%			1.55	%
Federal Reserve PPPLF borrowings		0.35	%			0.35	%			0.36	%			0.00	%			0.00	%
Subordinated debt and other borrowings		6.81	%			7.20	%			6.43	%			6.48	%			6.45	%
Total interest-bearing liabilities		0.70	%			0.70	%			0.88	%			1.13	%			1.23	%
Interest rate spread (tax equivalent basis, annualized)		3.33	%			3.28	%			3.36	%			3.48	%			3.56	%
Net interest margin (tax equivalent basis, annualized)		3.46	%			3.40	%			3.52	%			3.68	%			3.80	%