First Savings Financial Group, Inc. Reports Financial Results for First Fiscal Quarter Ending December 31, 2024

JEFFERSONVILLE, Ind., January 28, 2025 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG), the holding company for First Savings Bank, announced a strong financial performance for the quarter ending December 31, 2024. The company reported a net income of $6.2 million, translating to $0.89 per diluted share. This represents a significant increase compared to the previous year's net income of $920,000, or $0.13 per diluted share, for the quarter ended December 31, 2023. Excluding nonrecurring items, net income stood at $4.3 million and net income per diluted share was $0.62 for the latest quarter, again higher than the $920,000 reported in 2023.

The core banking segment made a notable contribution, with net income reaching $6.4 million or $0.91 per diluted share for the quarter ended December 31, 2024, compared to $4.0 million or $0.59 per diluted share in December 2023. When factoring out nonrecurring items, the core banking earnings were $4.5 million, equating to $0.64 per diluted share, consistent with last year’s performance.

Larry W. Myers, President and CEO, commented on the company’s upbeat performance: “We are pleased with the first fiscal quarter results. A bulk sale of home equity lines of credit greatly contributed to our earnings. This is part of our strategy for fiscal 2025 to transition our home equity line of credit business towards an 'originate for sale' model. This move is aimed at boosting our noninterest income while also managing our loan-to-deposit ratio, reducing dependence on non-core funding, and generating additional capital.”

Myers continued, “The capital gained from the bulk sale, along with potential future sales, will be used to lessen our high-cost subordinated debt and support share repurchases. Looking ahead, we are optimistic about fiscal 2025. Our focus will remain on enhancing asset quality, pursuing selective loan growth opportunities, and managing capital and liquidity effectively. We will consistently evaluate strategies that can enhance shareholder value.”

Review of Financial Operations for the Three Months Ended December 31, 2024

During this quarter, the company experienced an increase in net interest income by $1.3 million, or 9.6%, bringing the total to $15.5 million in comparison to the same quarter the previous year. The tax-equivalent net interest margin rose to 2.75% from 2.69% year over year. The positive trend in net interest income was due to a $3.8 million surge in interest income, which was somewhat negated by a $2.4 million rise in interest expenses.

The company recognized a reversal of provisions for credit losses amounting to $490,000 for loans and $7,000 for securities for the quarter, along with a provision of $46,000 for unfunded lending commitments. This was contrasted with a provision for credit losses for loans of $470,000 and a reversal for unfunded lending commitments of $58,000 in the same quarter of 2023.

Key to the reversal of provisions during the 2024 period was the bulk sale of approximately $87.2 million of home equity lines, which resulted in significant reversals totaling approximately $1.1 million. Additionally, the company reported net charge-offs of $119,000 for the quarter versus $9,000 in 2023. In terms of nonperforming loans, they decreased slightly from $16.9 million at September 30 to $16.6 million by December 31, 2024.

Moreover, noninterest income reported an increase of $3.3 million largely attributed to a $2.5 million net gain from loan sales due to the bulk sale executed during the quarter, alongside $403,000 in net gains from equity securities with no comparable gains seen last year.

In terms of expenses, the company successfully decreased its noninterest costs by $1.1 million this quarter, primarily driven by lower expenses in compensation and benefits, occupancy and equipment costs, and professional fees.

Following these operations, the company recognized an income tax expense of $848,000 for the three months ended December 31, contrasting with an income tax benefit of $476,000 for the same period last year, which is largely due to the higher taxable income derived from the previously mentioned gains on loan sales. The effective tax rate for 2024 stood at 12.0%, reflecting investment tax credits stemming from solar projects.

Financial Condition Comparison as of December 31, 2024, and September 30, 2024

As of December 31, 2024, total assets of First Savings Financial Group declined by $61.6 million, settling at approximately $2.39 billion. Specifically, net loans held for investment decreased by $79.3 million influenced by the earlier mentioned bulk sale of home equity lines.

The total liabilities saw a reduction of $60.5 million, driven by a $48.1 million fall in total deposits, comprising a notable decrease in brokered deposits of $72.1 million. As of the quarter's end, 31.1% of total deposits surpassed the FDIC insurance limit of $250,000 per account.

With regard to stockholders’ equity, there was a decrease of $1.1 million, down to $176.0 million from $177.1 million at the prior quarter end. The adjustment was mainly due to a $6.6 million increase in accumulated other comprehensive loss, partially counterbalanced by a $5.2 million surge in retained earnings.

First Savings Bank, headquartered in Jeffersonville, Indiana, operates as a community bank with fifteen branches in Southern Indiana. The bank is noted for its reputable lending programs, aspiring to achieve its community-oriented vision. Its shares are traded on NASDAQ under the symbol “FSFG.”

This announcement contains forward-looking statements as defined by federal securities laws. The prospective statements are based on expectations surrounding business strategies and expected results. They contain terms like 'expects,' 'believes,' 'anticipates,' and other similar expressions.

Investors are cautioned against placing undue reliance on these forward-looking statements, owing to inherent risks associated with economic conditions, market interest rates, regulatory changes, and other factors noted in the company's official filings.

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