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

JEFFERSONVILLE, Ind., Jan. 28, 2025 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG), the holding company for First Savings Bank, has announced its financial performance for the quarter ending on December 31, 2024.

For the first fiscal quarter of 2025, the company reported a net income of $6.2 million, translating to $0.89 per diluted share. This is a significant increase from the net income of $920,000, or $0.13 per diluted share, reported in the same quarter a year earlier. When excluding nonrecurring items, net income was recorded at $4.3 million, with a net income per diluted share of $0.62 for the current quarter.

Core Banking Performance

The core banking division exhibited a net income of $6.4 million, or $0.91 per diluted share, for the quarter ending December 31, 2024. This reflects an increase from $4.0 million, or $0.59 per diluted share, in the fourth quarter of 2023. Excluding nonrecurring items, the core banking division’s net income reached $4.5 million, or $0.64 per diluted share, up from $4.0 million in the same period last year.

CEO Comments on Corporate Strategy

Larry W. Myers, President and CEO, remarked on the company’s progress by expressing satisfaction with the first fiscal quarter. He credited the quarter’s success to a strategic plan that involved a bulk sale of first lien home equity lines of credit. This initiative is part of a broader strategy aimed at transitioning to an originating-for-sale model in order to increase noninterest income, control the loan-to-deposit ratio, reduce reliance on noncore funding, and enhance capital.

Myers further elaborated that the capital generated from the bulk sale and likely future sales could be directed towards retiring high-cost subordinated debt and repurchasing company shares. He expressed optimism regarding the rest of fiscal 2025, emphasizing a continued focus on maintaining asset quality, exploring selective loan growth opportunities, and careful management of capital and liquidity. The ultimate goal remains to maximize shareholder value.

Operational Results Overview

Net interest income rose by $1.3 million, or 9.6%, reaching $15.5 million for the three months ended December 31, 2024, compared to the corresponding period last year. The tax equivalent net interest margin for the current three months was reported at 2.75%, marginally up from 2.69% a year prior. This increase is attributed to a rise in interest income by $3.8 million, which was somewhat offset by an increase in interest expenses by $2.4 million.

The company also reported a reversal of $490,000 in provisions for credit losses related to loans. For the same quarter last year, there was a provision for credit losses that amounted to $470,000. The reversal of provisions for credit losses during the ongoing period primarily stemmed from the sale of approximately $87.2 million in home equity lines of credit, contributing to reversals in the allowance for credit losses.

Financial Condition and Stockholder Equity

From September 30, 2024, to December 31, 2024, total assets fell by $61.6 million, decreasing from $2.45 billion to $2.39 billion. A notable decrease in net loans held for investment, down $79.3 million due to the bulk sale, was observed during the same period. The company's total liabilities saw a decrease of $60.5 million, largely due to reduced total deposits and a downtrend in brokered deposits.

As for stockholder equity, there was a minor decrease of $1.1 million to $176.0 million by the end of the reporting period, largely attributed to an increase in accumulated other comprehensive loss due to rising market interest rates. Despite these changes, First Savings Bank remains compliant with the “well-capitalized” designation under regulatory capital guidelines.

Company Background

Headquartered in Jeffersonville, Indiana, First Savings Bank is a community bank that operates fifteen branches across Southern Indiana. Its national lending programs include single-tenant net lease commercial real estate financing and SBA lending initiatives. The bank prides itself on being a leader in its communities and maintaining a high standard of service.

This earnings summary reflects the company’s continuing efforts to strengthen its financial position and enhance investor value through strategic initiatives. Stakeholders are encouraged to review this report carefully and stay informed about the company’s future endeavors.

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