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

First Savings Financial Group, Inc. (NASDAQ: FSFG), headquartered in Jeffersonville, Indiana, has announced its financial results for the first fiscal quarter that ended on December 31, 2024. The company reported a significant net income of $6.2 million, translating to $0.89 per diluted share. This represents a remarkable increase from the net income of $920,000, or $0.13 per diluted share, recorded in the same quarter the previous year.

When excluding nonrecurring items, the Company disclosed a non-GAAP net income of $4.3 million for the reported quarter, which equals $0.62 per diluted share. Last year, it also registered a net income of $920,000 for the same three-month period. The core banking segment performed impressively as well, earning $6.4 million or $0.91 per diluted share in the recent quarter, an increase from $4.0 million at $0.59 per diluted share from the previous year.

Performance Overview

Commenting on the strong performance, Larry W. Myers, President and CEO, expressed satisfaction with the outcomes of the first fiscal quarter. The results were bolstered by a bulk sale of first lien home equity lines of credit, enhancing the Bank's net interest margin. This bulk sale is a strategic move to shift the home equity line of credit business to an originate-for-sale model throughout fiscal 2025. The aim is to improve noninterest income, control the loan-to-deposit ratio, reduce reliance on noncore funding sources, and generate additional capital.

Myers noted that the surplus capital from the bulk sale, along with potential future sales, could be effectively used to pay off high-cost subordinated debt and may allow for the repurchase of Company common shares. He added that the organization remains optimistic about the upcoming fiscal year, focusing on asset quality, selective loan growth opportunities, and capital management strategies that enhance shareholder value.

Operational Results

The Company saw a 9.6% increase in net interest income, amounting to $15.5 million, up from the prior year. This increase is largely attributed to a rise in interest income, which grew by $3.8 million, counterbalanced by a $2.4 million increase in interest expense. Additionally, the tax-equivalent net interest margin improved, recording 2.75% compared to 2.69% in the previous year.

Moreover, First Savings Financial Group experienced an overall reversal of provisions for credit losses amounting to $490,000 for loans and $7,000 for securities this quarter, signifying positive credit conditions relative to the same period last year.

Financial Position Comparison

At the close of the quarter, total assets decreased by $61.6 million, dropping from $2.45 billion at the end of September to $2.39 billion. The decline is substantially linked to a decrease in net loans held for investment, attributed to the previously mentioned $87.2 million bulk sale of residential home equity line of credit loans.

On the liabilities side, total liabilities decreased by $60.5 million, influenced by a $48.1 million dip in total deposits. The majority of this decrease stemmed from brokered deposits, alongside a slight reduction in borrowings from the Federal Home Loan Bank (FHLB). As per the latest report, deposits exceeding the Federal Deposit Insurance Corporation (FDIC) insurance limit account for 31.1% of total deposits.

Conclusion

First Savings Bank operates in the Southern Indiana region, maintaining a strong community-oriented approach to banking. The company is focusing on enhancing its presence and quality of services while keeping an eye on strategic growth and operational efficiency. As First Savings Financial Group continues to pursue its strategic goals, shareholders and stakeholders can look forward to the ongoing evaluation of options aimed at maximizing shareholder value.

financial, performance, banking