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Consolidated Statements of Income (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
INTEREST INCOME        
Loans receivable, including fees $ 42,406,000 $ 38,216,000 $ 83,403,000 $ 74,208,000
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions 3,534,000 2,651,000 7,417,000 5,271,000
Total interest and dividend income 45,940,000 40,867,000 90,820,000 79,479,000
INTEREST EXPENSE        
Deposits 13,252,000 7,610,000 26,134,000 14,234,000
Borrowings 1,801,000 1,219,000 2,968,000 2,060,000
Subordinated notes 486,000 486,000 971,000 971,000
Total interest expense 15,539,000 9,315,000 30,073,000 17,265,000
NET INTEREST INCOME [1] 30,401,000 31,552,000 60,747,000 62,214,000
PROVISION FOR CREDIT LOSSES 1,077,000 716,000 2,476,000 2,824,000
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES 29,324,000 30,836,000 58,271,000 59,390,000
NONINTEREST INCOME        
Service charges and fee income 2,479,000 2,862,000 5,031,000 5,470,000
Gain on sale of loans 2,463,000 1,947,000 4,301,000 3,423,000
Gain on sale of MSRs 0 0 8,215,000 0
Gain (loss) on sale of investment securities 151,000 0 (7,847,000) 0
Earnings on cash surrender value of BOLI 242,000 227,000 482,000 448,000
Other noninterest income 533,000 (203,000) 797,000 711,000
Total noninterest income [2] 5,868,000 4,833,000 10,979,000 10,052,000
NONINTEREST EXPENSE        
Salaries and benefits 13,378,000 13,513,000 26,935,000 27,377,000
Operations 3,519,000 3,643,000 6,527,000 6,335,000
Occupancy 1,669,000 1,562,000 3,374,000 3,082,000
Data processing 2,058,000 1,683,000 4,016,000 3,251,000
Loan costs 653,000 1,043,000 1,238,000 1,513,000
Professional and board fees 888,000 657,000 1,811,000 1,335,000
Federal Deposit Insurance Corporation (“FDIC”) insurance 450,000 591,000 982,000 1,171,000
Marketing and advertising 377,000 430,000 604,000 620,000
Acquisition cost 0 61,000 0 1,562,000
Amortization of core deposit intangible 919,000 1,023,000 1,860,000 1,482,000
Impairment of MSRs (54,000) (2,000) 39,000 0
Total noninterest expense [3] 23,857,000 24,204,000 47,386,000 47,728,000
Income before provision for income taxes 11,335,000 11,465,000 21,864,000 21,714,000
PROVISION FOR INCOME TAXES 2,376,000 2,349,000 4,508,000 4,386,000
Net income $ 8,959,000 $ 9,116,000 $ 17,356,000 $ 17,328,000
Basic earnings per share (in dollars per share) $ 1.15 $ 1.17 $ 2.23 $ 2.23
Diluted earnings per share (in dollars per share) $ 1.13 $ 1.16 $ 2.2 $ 2.19
[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 and six months ended June 30, 2024, the Company recorded a net increase in fair value of $184,000 and $186,000, and a net decrease in fair value of $520,000 and net increase in fair value of $57,000 for the three and six months ended June 30, 2023, respectively. As of June 30, 2024 and 2023, there was $13.9 million and $14.3 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 expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three and six months ended June 30, 2024, the Home Lending segment included allocated overhead expenses of $1.5 million and $3.0 million, compared to the three and six months ended June 30, 2023, of $1.6 million and $3.2 million, respectively.