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Consolidated Statements of Income (Unaudited) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
INTEREST INCOME    
Loans receivable, including fees $ 40,997,000 $ 35,992,000
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions 3,883,000 2,620,000
Total interest and dividend income 44,880,000 38,612,000
INTEREST EXPENSE    
Deposits 12,882,000 6,624,000
Borrowings 1,167,000 841,000
Subordinated notes 485,000 485,000
Total interest expense 14,534,000 7,950,000
NET INTEREST INCOME [1] 30,346,000 30,662,000
PROVISION FOR CREDIT LOSSES 1,399,000 2,108,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 28,947,000 28,554,000
NONINTEREST INCOME    
Service charges and fee income 2,552,000 2,608,000
Gain on sale of loans held for sale 1,838,000 1,476,000
Gain on sale of MSRs 8,215,000 0
Loss on sale of investment securities (7,998,000) 0
Earnings on cash surrender value of BOLI 240,000 221,000
Other noninterest income 264,000 914,000
Total noninterest income 5,111,000 [2] 5,219,000 [3]
NONINTEREST EXPENSE    
Salaries and benefits 13,557,000 13,864,000
Operations 3,008,000 2,692,000
Occupancy 1,705,000 1,520,000
Data processing 1,958,000 1,568,000
Loan costs 585,000 470,000
Professional and board fees 923,000 678,000
Federal Deposit Insurance Corporation (“FDIC”) insurance 532,000 580,000
Marketing and advertising 227,000 190,000
Acquisition costs 0 1,501,000
Amortization of core deposit intangible 941,000 459,000
Impairment of MSRs 93,000 2,000
Total noninterest expense [4] 23,529,000 23,524,000
Income before provision for income taxes 10,529,000 10,249,000
PROVISION FOR INCOME TAXES 2,132,000 2,037,000
Net income $ 8,397,000 $ 8,212,000
Basic earnings per share (in dollars per share) $ 1.07 $ 1.06
Diluted earnings per share (in dollars per share) $ 1.06 $ 1.04
[1] Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets.
[2] Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value, and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the three months ended March 31, 2024, the Company recorded a net increase in fair value of $2,000, as compared to a net increase in fair value of $577,000 for the three months ended March 31, 2023, respectively. As of March 31, 2024 and 2023, there was $15.0 million and $15.1 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from loans held for sale to loans held for investment.
[3] Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value, and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the years ended December 31, 2023, 2022, and 2021, the Company recorded net increases in fair value of $447,000, net decreases of $1.7 million, and net decreases of $29,000, respectively. As of December 31, 2023, 2022, and 2021, there were $15.1 million, $14.0 million, and $17.8 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from loans held for sale to loans held for investment.
[4] Noninterest expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three months ended March 31, 2024 and 2023, the Home Lending segment included allocated overhead expenses of $1.5 million and $1.6 million, respectively.