First Savings Financial Group, Inc. Reports Financial Results for the First Fiscal Quarter Ended December 31, 2019

CLARKSVILLE, Ind., Feb. 05, 2020 (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 $3.4 million, or $1.44 per diluted share, for the quarter ended December 31, 2019 compared to net income of $2.9 million, or $1.24 per diluted share, for the quarter ended December 31, 2018, resulting in an increase of 16.1% on a per share basis. 

Net interest income increased $1.3 million, or 13.7%, to $10.9 million for the quarter ended December 31, 2019 as compared to the same quarter in 2018.  The increase in net interest income was due to a $2.0 million increase in interest income, which was partially offset by a $650,000 increase in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $176.0 million, from $989.8 million for 2018 to $1.17 billion for 2019, partially offset by a decrease in the weighted average tax-equivalent yield, from 4.88% for 2018 to 4.82% for 2019.  Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $158.0 million, from $777.1 million for 2018 to $935.1 million for 2019, and an increase in the average cost of interest-bearing liabilities, from 1.15% for 2018 to 1.23% for 2019.  The increase in the average cost of interest-bearing liabilities for 2019 was due primarily to increasing market interest rates on deposits including brokered deposits.  Additional details are included in the “Summarized Consolidated Average Balance Sheets” table at the end of this release. 

The Company recognized $505,000 in provision for loan losses for the quarter ended December 31, 2019, compared to $315,000 in provision for loan losses recognized in 2018.  Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $328,000, from $5.2 million at September 30, 2019 to $5.5 million at December 31, 2019.  The Company recognized net charge-offs of $15,000 for the quarter ended December 31, 2019 compared to $18,000 for the same quarter in 2018. 

Noninterest income increased $12.3 million for the quarter ended December 31, 2019 as compared to the same quarter in 2018.  The increase was due primarily to an increase in mortgage banking income of $12.5 million partially offset by a decrease in the net gain on sale of loans guaranteed by the SBA of $203,000.  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 subtracted from (in the case of net income) or added to (in the case of net loss) 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 Statements of Income Information” table at the end of this release. 

Noninterest expense increased $12.9 million for the quarter ended December 31, 2019 as compared to the same quarter in 2018.  The increase was due primarily to increases in compensation and benefits, advertising, and occupancy and equipment expense of $10.6 million, $1.1 million and $597,000, respectively.  The increase in compensation and benefits expense is attributable to the addition of new employees to support the growth of the Company, primarily its mortgage banking and SBA lending activities, and normal salary and benefits adjustments.  The increase in advertising is primarily due to the mortgage banking segment.  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 all primarily related to the mortgage banking segment.

The Company recognized income tax expense of $638,000 for the quarter ended December 31, 2019, for an effective tax rate of 15.0%, as compared to income tax expense of $522,000, for an effective tax rate of 14.4%, for 2018.  The increase in the effective tax rate for 2019 compared to 2018 is primarily due to an increase in taxable income and a decrease in bond tax credits.

Comparison of Financial Condition at December 31, 2019 and September 30, 2019

Total assets increased $70.0 million, from $1.22 billion at September 30, 2019 to $1.29 billion at December 31, 2019.  Net loans increased $41.0 million during the quarter ended December 31, 2019, due primarily to continued growth in the commercial real estate and SBA loan portfolios.  Residential mortgage loans held for sale also increased by $13.1 million during the quarter ended December 31, 2019 due to increased production from the mortgage banking segment.  Total liabilities increased $67.1 million primarily due to a $51.2 million increase in total deposits and a $17.0 million increase in Federal Home Loan Bank borrowings.

Common stockholders’ equity increased $2.7 million, from $121.1 million at September 30, 2019 to $123.8 million at December 31, 2019, due primarily to retained net income of $3.2 million.  At December 31, 2019 and September 30, 2019, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

Prior Period Restatement

On November 19, 2019, the Company filed with the Securities and Exchange Commission (“SEC”) a Current Report on Form 8-K to report the Company’s conclusion that its interim consolidated financial statements, and related notes, contained in its Form 10-Q for the period ended June 30, 2019 should no longer be relied upon.  The accounting matters underlying this conclusion relate primarily to significant accounting assumptions used in the fair value calculations for interest rate lock commitments and mortgage loans held-for-sale relating to the Company’s mortgage banking operations segment and unrecognized accruals for incentive compensation related to such segment.  On December 4, 2019, the Company filed with the SEC an amended Form 10-Q for the period ended June 30, 2019, containing restated interim consolidated financial statements, and related noted, for the period then ended.  All financial information at June 30, 2019 and for periods then ended contained in this earnings release have been restated accordingly.

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 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
	December 31,
OPERATING DATA:	2019				2018
(In thousands, except share and per share data)
Total interest income	$	13,767			$	11,801
Total interest expense		2,875				2,225
Net interest income		10,892				9,576
Provision for loan losses		505				315
Net interest income after provision for loan losses		10,387				9,261
Total noninterest income		18,126				5,781
Total noninterest expense		24,272				11,416
Income before income taxes		4,241				3,626
Income tax expense		638				522
Net income		3,603				3,104
Less: Net income attributable to noncontrolling interests		164				173
Net income attributable to the Company	$	3,439			$	2,931
Net income per share, basic	$	1.47			$	1.28
Weighted average shares outstanding, basic		2,340,619				2,284,665
Net income per share, diluted	$	1.44			$	1.24
Weighted average shares outstanding, diluted		2,382,754				2,371,480
Performance ratios (three-month data annualized)
Return on average assets		1.09	%			1.11	%
Return on average common stockholders' equity		11.24	%			11.82	%
Interest rate spread		3.59	%			3.73	%
Net interest margin		3.83	%			3.98	%
Efficiency ratio		83.64	%			74.34	%
	December 31,				September 30,				Increase
FINANCIAL CONDITION DATA:	2019				2019				(Decrease)
(In thousands, except per share data)
Total assets	$	1,292,573			$	1,222,579			$	69,994
Cash and cash equivalents		41,327				41,432				(105	)
Investment securities		179,991				179,638				353
Loans held for sale		110,523				96,070				14,453
Gross loans		862,230				820,698				41,532
Allowance for loan losses		10,530				10,040				490
Interest earning assets		1,186,149				1,130,095				56,054
Goodwill		9,848				9,848				-
Core deposit intangibles		1,362				1,416				(54	)
Noninterest-bearing deposits		180,321				173,072				7,249
Interest-bearing deposits		705,277				661,312				43,965
FHLB borrowings		239,566				222,544				17,022
Total liabilities		1,168,395				1,101,322				67,073
Stockholders' equity, net of noncontrolling interests		123,810				121,053				2,757
Book value per share	$	52.52			$	51.51			$	1.01
Tangible book value per share (1)		47.77				46.71				1.05
Non-performing assets:
Nonaccrual loans	$	5,498			$	5,168			$	330
Accruing loans past due 90 days		10				12				(2	)
Total non-performing loans		5,508				5,180				328
Foreclosed real estate		-				55				(55	)
Troubled debt restructurings classified as performing loans		7,332				7,265				67
Total non-performing assets	$	12,840			$	12,500			$	340
Asset quality ratios:
Allowance for loan losses as a percent of total gross loans		1.22	%			1.22	%			0.00	%
Allowance for loan losses as a percent of nonperforming loans		191.18	%			193.82	%			-2.65	%
Nonperforming loans as a percent of total gross loans		0.64	%			0.63	%			0.01	%
Nonperforming assets as a percent of total assets		0.99	%			1.02	%			-0.03	%
(1) See reconciliation of GAAP and Non-GAAP financial measures for additional information relating to calculation of this item
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's
performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to
evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the
Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
	December 31,				September 30,
Tangible Book Value Per Share	2019				2019
(In thousands, except share and per share data)
Stockholders' equity, net of noncontrolling interests (GAAP)	$	123,810			$	121,053
Less: goodwill and core deposit intangibles		(11,210	)			(11,264	)
Tangible equity (non-GAAP)	$	112,600			$	109,789
Outstanding common shares		2,357,369				2,350,229
Tangible book value per share (non-GAAP)	$	47.77			$	46.71
Book value per share (GAAP)	$	52.52			$	51.51
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)	2019				2019				2019				2019				2018
Total cash and cash equivalents	$	41,327			$	41,432			$	65,105			$	40,442			$	36,344
Total investment securities		179,991				179,638				182,421				193,547				188,830
Total loans, net of allowance for loan losses		851,700				810,658				796,994				762,661				734,061
Total assets		1,292,573				1,222,579				1,228,953				1,129,722				1,073,989
Total deposits		885,598				834,384				888,145				824,770				832,073
Total borrowings from the Federal Home Loan Bank		239,566				222,544				189,255				160,938				107,019
Stockholders' equity, net of noncontrolling interests		123,810				121,053				114,971				108,688				102,968
Noncontrolling interests in subsidiary		368				204				176				1,241				1,593
Total equity		124,178				121,257				115,147				109,929				104,561
Outstanding common shares		2,357,369				2,350,229				2,350,229				2,344,836				2,304,310
	Three Months Ended
Summarized Consolidated Statements of Income	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except per share data)	2019				2019				2019				2019				2018
Total interest income	$	13,767			$	13,829			$	13,058			$	12,307			$	11,801
Total interest expense		2,875				3,069				3,166				2,446				2,225
Net interest income		10,892				10,760				9,892				9,861				9,576
Provision for loan losses		505				471				337				340				315
Net interest income after provision for loan losses		10,387				10,289				9,555				9,521				9,261
Total noninterest income		18,126				18,340				12,644				7,089				5,781
Total noninterest expense		24,272				21,606				16,488				12,880				11,416
Income before income taxes		4,241				7,023				5,711				3,730				3,626
Income tax expense		638				1,359				748				466				522
Net income		3,603				5,664				4,963				3,264				3,104
Less: net income (loss) attributable to noncontrolling interests		164				343				571				(269	)			173
Net income attributable to the Company	$	3,439			$	5,321			$	4,392			$	3,533			$	2,931
Net income per share, basic	$	1.47			$	2.28			$	1.88			$	1.53			$	1.28
Weighted average shares outstanding, basic		2,340,619				2,337,472				2,333,502				2,307,155				2,284,665
Net income per share, diluted	$	1.44			$	2.24			$	1.85			$	1.50			$	1.24
Weighted average shares outstanding, diluted		2,382,754				2,378,221				2,373,578				2,360,004				2,371,480
As previously discussed, financial information at June 30, 2019 and for periods then ended contained in this earnings release have been restated.
	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Consolidated Performance Ratios (Annualized)	2019				2019				2019				2019				2018
Return on average assets		1.09	%			1.75	%			1.50	%			1.28	%			1.11	%
Return on average equity		11.76	%			19.28	%			17.95	%			12.34	%			12.35	%
Return on average common stockholders' equity		11.24	%			18.12	%			15.90	%			13.55	%			11.82	%
Net interest margin (tax equlivalent basis)		3.83	%			3.92	%			3.72	%			3.92	%			3.98	%
Efficiency ratio		83.64	%			74.25	%			73.16	%			75.99	%			74.34	%
	As of or for the Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Consolidated Asset Quality Ratios	2019				2019				2019				2019				2018
Nonperforming loans as a percentage of total loans		0.64	%			0.63	%			0.63	%			0.70	%			0.62	%
Nonperforming assets as a percentage of total assets		1.00	%			1.02	%			1.09	%			1.23	%			1.28	%
Allowance for loan losses as a percentage of total loans		1.22	%			1.22	%			1.19	%			1.29	%			1.29	%
Allowance for loan losses as a percentage of nonperforming loans		191.18	%			193.82	%			188.29	%			184.96	%			208.77	%
Net charge-offs (recoveries) to average outstanding loans		0.00	%			0.01	%			0.08	%			0.00	%			0.00	%
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):
	Three Months Ended
Segmented Statements of Income Information	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except per share data)	2019				2019				2019				2019				2018
Net interest income - Core Banking	$	9,188			$	9,178			$	8,739			$	8,817			$	8,574
Net interest income - SBA Lending (Q2)		1,217				1,237				1,066				934				908
Net interest income - Mortgage Banking		487				345				87				110				94
Total net interest income	$	10,892			$	10,760			$	9,892			$	9,861			$	9,576
Provision for loan losses - Core Banking	$	520			$	104			$	162			$	(492	)		$	(16	)
Provision for loan losses - SBA Lending (Q2)		(15	)			367				175				832				331
Provision for loan losses - Mortgage Banking		-				-				-				-				-
Total provision for loan losses	$	505			$	471			$	337			$	340			$	315
Net interest income after provision for loan losses - Core Banking	$	8,668			$	9,074			$	8,577			$	9,309			$	8,590
Net interest income after provision for loan losses - SBA Lending (Q2)		1,232				870				891				102				577
Net interest income after provision for loan losses - Mortgage Banking		487				345				87				110				94
Total net interest income after provision for loan losses	$	10,387			$	10,289			$	9,555			$	9,521			$	9,261
Noninterest income - Core Banking	$	1,391			$	1,582			$	1,351			$	1,337			$	1,380
Noninterest income - SBA Lending (Q2)		929				1,715				1,658				673				1,137
Noninterest income - Mortgage Banking		15,806				15,043				9,635				5,079				3,264
Total noninterest income	$	18,126			$	18,340			$	12,644			$	7,089			$	5,781
Noninterest expense - Core Banking	$	7,545			$	7,521			$	7,576			$	6,995			$	6,586
Noninterest expense - SBA Lending (Q2)		1,825				1,883				1,385				1,322				1,362
Noninterest expense - Mortgage Banking		14,902				12,202				7,527				4,563				3,468
Total noninterest expense	$	24,272			$	21,606			$	16,488			$	12,880			$	11,416
Income before income taxes - Core Banking	$	2,514			$	3,135			$	2,352			$	3,651			$	3,384
Income (loss) before income taxes - SBA Lending (Q2)		336				702				1,164				(547	)			352
Income (loss) before income taxes - Mortgage Banking		1,391				3,186				2,195				626				(110	)
Total income before income taxes	$	4,241			$	7,023			$	5,711			$	3,730			$	3,626
Income tax expense (benefit) - Core Banking	$	247				472				51				379				505
Income tax expense (benefit) - SBA Lending (Q2)		43				90				148				(70	)			45
Income tax expense (benefit) - Mortgage Banking		348				797				549				157				(28	)
Total income tax expense	$	638			$	1,359			$	748			$	466			$	522
Net income - Core Banking	$	2,267			$	2,663			$	2,301			$	3,272			$	2,879
Net income (loss) - SBA Lending (Q2)		293				612				1,016				(477	)			307
Net income (loss) - Mortgage Banking		1,043				2,389				1,646				469				(82	)
Total net income	$	3,603			$	5,664			$	4,963			$	3,264			$	3,104
Net income attributable to the Company - Core Banking	$	2,267			$	2,663			$	2,301			$	3,272			$	2,879
Net income (loss) attributable to the Company - SBA Lending (Q2)		129				269				445				(208	)			134
Net income (loss) attributable to the Company - Mortgage Banking		1,043				2,389				1,646				469				(82	)
Total net income attributable to the Company	$	3,439			$	5,321			$	4,392			$	3,533			$	2,931
Net income per share, basic - Core Banking	$	0.96			$	1.14			$	0.98			$	1.42			$	1.26
Net income (loss) per share, basic - SBA Lending (Q2)		0.06				0.12				0.19				(0.09	)			0.06
Net income (loss) per share, basic - Mortgage Banking		0.45				1.02				0.71				0.20				(0.04	)
Total net income per share, basic	$	1.47			$	2.28			$	1.88			$	1.53			$	1.28
Net income per share, diluted - Core Banking	$	0.95			$	1.13			$	0.97			$	1.39			$	1.21
Net income (loss) per share, diluted - SBA Lending (Q2)		0.05				0.11				0.19				(0.09	)			0.06
Net income (loss) per share, diluted - Mortgage Banking		0.44				1.00				0.69				0.20				(0.03	)
Total net income per share, diluted	$	1.44			$	2.24			$	1.85			$	1.50			$	1.24
As previously discussed, financial information at June 30, 2019 and for periods then ended contained in this earnings release have been restated.
	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
	2019				2019				2019				2019				2018
Noninterest Expense Detail by Segment
Compensation - Core Banking	$	4,451			$	4,427			$	4,694			$	3,957			$	3,735
Occupancy - Core Banking		1,200				1,140				1,105				988				941
Advertising - Core Banking		147				183				151				166				151
Other - Core Banking		1,747				1,771				1,626				1,884				1,759
Total Noninterest Expense - Core Banking	$	7,545			$	7,521			$	7,576			$	6,995			$	6,586
Compensation - SBA Lending (Q2)	$	1,469			$	1,403			$	1,045			$	985			$	1,069
Occupancy - SBA Lending (Q2)		89				88				80				88				76
Advertising - SBA Lending (Q2)		5				8				10				4				6
Other - SBA Lending (Q2)		262				384				250				245				211
Total Noninterest Expense - SBA Lending (Q2)	$	1,825			$	1,883			$	1,385			$	1,322			$	1,362
Compensation - Mortgage Banking	$	11,900			$	9,866			$	5,966			$	3,298			$	2,453
Occupancy - Mortgage Banking		633				549				387				344				308
Advertising - Mortgage Banking		1,314				871				566				397				239
Other - Mortgage Banking		1,055				916				608				524				468
Total Noninterest Expense - Mortgage Banking	$	14,902			$	12,202			$	7,527			$	4,563			$	3,468
	Three Months Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
Mortgage Banking Noninterest Expense Fixed vs. Variable	2019				2019				2019				2019				2018
Noninterest Expense - Fixed Expenses	$	5,466			$	4,603			$	3,589			$	2,833			$	2,440
Noninterest Expense - Variable Expenses (2)		9,436				7,599				3,938				1,730				1,028
Total Noninterest Expense	$	14,902			$	12,202			$	7,527			$	4,563			$	3,468
	Three Months Ended
SBA Lending (Q2) Data	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except percentage data)	2019				2019				2019				2019				2018
Final funded loans guaranteed portion sold, SBA	$	10,830			$	19,471			$	22,310			$	9,133			$	12,943
Gross gain on sales of loans, SBA	$	1,066			$	2,138			$	2,085			$	977			$	1,203
Weighted average gross gain on sales of loans, SBA		9.84	%			10.98	%			9.35	%			10.70	%			9.29	%
Net gain on sales of loans, SBA (3)	$	761			$	1,569			$	1,515			$	521			$	964
Weighted average net gain on sales of loans, SBA		7.03	%			8.06	%			6.79	%			5.70	%			7.45	%
	Three Months Ended
Mortgage Banking Data	December 31,				September 30,				June 30,				March 31,				December 31,
(In thousands, except percentage data)	2019				2019				2019				2019				2018
Mortgage originations for sale in the secondary market		542,568				447,616				258,743				110,680				66,046
Mortgage sales		529,344				447,819				204,565				102,022				60,409
Gross gain on sales of loans, mortgage banking		13,411				14,244				7,335				3,715				2,071
Weighted average gross gain on sales of loans, mortgage banking		2.53	%			3.18	%			3.59	%			3.64	%			3.43	%
Net mortgage banking income (4)		15,817				15,033				9,611				5,074				3,289
(2) Variable expenses include incentive compensation and advertising expenses
(3) Net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment, and inclusive of gains on servicing assets
(4) Net of lender credits and other investor expenses, and inclusive of loan fees, fair value adjustments and gains (losses) on derivative instruments
As previously discussed, financial information at June 30, 2019 and for periods then ended contained in this earnings release have been restated.
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)	2019				2019				2019				2019				2018
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	46,296			$	52,736			$	38,332			$	36,317			$	30,271
Loans		935,211				891,477				859,525				802,652				763,637
Investment securities		157,093				156,070				163,185				161,170				156,570
Agency mortgage-backed securities		13,057				15,178				21,993				24,682				29,133
FRB and FHLB stock		14,149				13,020				12,505				10,196				10,171
Total interest-earning assets	$	1,165,806			$	1,128,481			$	1,095,540			$	1,035,017			$	989,782
Interest income (tax equlivalent basis):
Interest-bearing deposits with banks	$	205			$	277			$	205			$	221			$	153
Loans		11,830				11,788				10,924				10,227				9,828
Investment securities		1,780				1,762				1,877				1,819				1,783
Agency mortgage-backed securities		83				105				152				179				193
FRB and FHLB stock		154				184				196				142				121
Total interest income (tax equivalent basis)	$	14,052			$	14,116			$	13,354			$	12,588			$	12,078
Weighted average yield (tax equlivalent basis, annualized):
Interest-bearing deposits with banks		1.77	%			2.10	%			2.14	%			2.43	%			2.02	%
Loans		5.06	%			5.29	%			5.08	%			5.10	%			5.15	%
Investment securities		4.53	%			4.52	%			4.60	%			4.51	%			4.56	%
Agency mortgage-backed securities		2.54	%			2.77	%			2.76	%			2.90	%			2.65	%
FRB and FHLB stock		4.35	%			5.65	%			6.27	%			5.57	%			4.76	%
Total interest-earning assets		4.82	%			5.00	%			4.88	%			4.86	%			4.88	%
Interest-bearing liabilities
Average balances:
Interest-bearing deposits	$	707,518			$	712,692			$	684,736			$	693,127			$	651,060
Repurchase agreements		-				250				1,354				1,353				1,352
Fed funds purchased		-				130				-				-				-
Borrowings from Federal Home Loan Bank		207,851				175,912				178,707				114,044				104,999
Other borrowings		19,735				19,718				19,701				19,684				19,667
Total interest-bearing liabilities	$	935,104			$	908,702			$	884,498			$	828,208			$	777,078
Interest expense:
Interest-bearing deposits	$	1,749			$	1,965			$	1,948			$	1,607			$	1,424
Repurchase agreements		-				-				1				1				1
Fed funds purchased		-				1				-				-				-
Borrowings from Federal Home Loan Bank		808				785				898				520				478
Other borrowings		318				318				319				318				322
Total interest expense	$	2,875			$	3,069			$	3,166			$	2,446			$	2,225
Weighted average cost (annualized):
Interest-bearing deposits		0.99	%			1.10	%			1.14	%			0.93	%			0.87	%
Repurchase agreements		0.00	%			0.00	%			0.30	%			0.30	%			0.30	%
Fed funds purchased		0.00	%			3.08	%			0.00	%			0.00	%			0.00	%
Borrowings from Federal Home Loan Bank		1.55	%			1.78	%			2.01	%			1.82	%			1.82	%
Other borrowings		6.45	%			6.45	%			6.48	%			6.46	%			6.55	%
Total interest-bearing liabilities		1.23	%			1.35	%			1.43	%			1.18	%			1.15	%
Interest rate spread (tax equlivalent basis, annualized)		3.59	%			3.65	%			3.45	%			3.68	%			3.73	%
Net interest margin (tax equlivalent basis, annualized)		3.83	%			3.92	%			3.72	%			3.92	%			3.98	%
As previously discussed, financial information at June 30, 2019 and for periods then ended contained in this earnings release have been restated.