First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2024

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First Savings Financial Group's Q3 2024 results show a mixed performance with some positive trends and ongoing challenges. The company reported $4.1 million in net income, or $0.60 per diluted share, a significant improvement from $2.3 million, or $0.34 per diluted share in Q3 2023.

Key points to consider:

Net interest income decreased by $331,000 (2.2%) year-over-year, primarily due to higher interest expenses.
The tax-equivalent net interest margin contracted to 2.67% from 2.94% a year ago, indicating pressure on profitability.
Noninterest income fell by $4.0 million, mainly due to the cessation of national mortgage banking operations.
Noninterest expenses decreased by $6.5 million, largely from reduced compensation and benefits expenses.
The core banking segment showed improvement, with net income of $4.7 million compared to $2.9 million in Q3 2023.

The company's focus on stabilizing net interest margin, managing deposit costs and maintaining strong asset quality is prudent in the current economic environment. However, the disappointing performance of the SBA Lending segment and the impact of ceasing national mortgage banking operations present ongoing challenges. The company's efforts to reduce balance sheet and operating inefficiencies could lead to improved performance in future quarters.

First Savings Financial Group's Q3 2024 results reflect the broader challenges facing the banking industry, particularly regional banks. The company's performance highlights several industry trends:

Margin pressure: The decline in net interest margin to 2.67% from 2.94% a year ago underscores the ongoing challenge of maintaining profitability in a high-rate environment.
Deposit competition: The company's mention of a 'slowed pace of deposit migration into higher cost types' suggests ongoing deposit pressures, a common theme across the banking sector.
Asset quality focus: Management's emphasis on maintaining strong asset quality is crucial, especially given the potential for economic headwinds.
Operational efficiency: The significant reduction in noninterest expenses ($6.5 million) demonstrates a focus on cost management, which is essential in the current environment.
Segment performance: The contrasting results between the core banking segment (improved) and SBA Lending segment (disappointing) highlight the importance of diversified revenue streams.

The company's strategic focus on high-quality lending, deposit growth and improving liquidity and capital positions aligns with industry best practices. However, the challenges in the SBA Lending segment and the impact of ceasing mortgage banking operations underscore the difficulties in navigating changing market conditions. The bank's 'well-capitalized' status provides a solid foundation, but ongoing vigilance will be important in managing interest rate sensitivity and potential credit risks.

07/25/2024 - 05:30 PM

JEFFERSONVILLE, Ind., July 25, 2024 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $4.1 million, or $0.60 per diluted share, for the quarter ended June 30, 2024 compared to net income of $2.3 million, or $0.34 per diluted share, for the quarter ended June 30, 2023. Excluding nonrecurring items, the Company reported net income of $3.5 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.52 (non-GAAP measure)⁽¹⁾ for the quarter ended June 30, 2024 compared to $2.3 million, or $0.34 per diluted share for the quarter ended June 30, 2023. The core banking segment reported net income of $4.7 million, or $0.69 per diluted share for the quarter ended June 30, 2024 compared to $2.9 million, or $0.43 per diluted share for the quarter ended June 30, 2023. Excluding nonrecurring items, the core banking segment reported net income of $4.2 million, or $0.61 per diluted share for the quarter ended June 30, 2024 (non-GAAP measure)⁽¹⁾compared to $2.9 million, or $0.43 per diluted share for the quarter ended June 30, 2023.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated, “We’re pleased to experience stabilization of the net interest margin along with a slowed pace of deposit migration into higher cost types and we’re very well positioned to benefit in a rates-down environment. Asset quality remains strong and we’re well prepared for any financial downturn that may occur. The results of the SBA Lending segment were disappointing, particularly with respect to loan sales. The SBA Lending pipeline is strong heading into the fourth fiscal quarter and we continue to evaluate strategies to improve financial performance. Additionally, we continue to evaluate and implement strategies to reduce balance sheet and operating inefficiencies. We continue to focus on strong asset quality; selective high-quality lending; deposit growth; and improvement of liquidity, capital and interest rate sensitivity positions. We’ve been successful in executing these strategies and we continue to move on the right trajectory, which we believe will deliver increasing financial results and shareholder value.”

^{(1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.}

Results of Operations for the Three Months Ended June 30, 2024 and 2023

Net interest income decreased $331,000, or 2.2%, to $14.5 million for the three months ended June 30, 2024 as compared to the same period in 2023. The tax equivalent net interest margin was 2.67% for the three months ended June 30, 2024 as compared to 2.94% for the same period in 2023. The decrease in net interest income was due to a $4.6 million increase in interest expense, partially offset by a $4.3 million increase in interest income. An average balance table including average asset yields and average liability costs is included in the table at the end of this release.

The Company recognized a provision for credit losses for loans of $501,000, a provision for unfunded lending commitments of $158,000 and a provision for credit losses for securities of $84,000 for the three months ended June 30, 2024, compared to a provision for loan losses of $441,000 for the same period in 2023. The Company recognized net charge-offs of $105,000 for the three months ended June 30, 2024, of which $49,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $61,000 in 2023.

Noninterest income decreased $4.0 million for the three months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to a $4.6 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. In addition, the Company recorded the estimated fair market value on Visa Class C shares of $436,000, with no corresponding amount for the same period in 2023.

Noninterest expense decreased $6.5 million for the three months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense of $3.7 million. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. In addition, the Company recognized a reversal of a contingency accrual of $283,000 during the quarter ended June 30, 2024, with no corresponding amount during the same period in 2023.

The Company recognized income tax expense of $483,000 for the three months ended June 30, 2024 compared to $331,000 for the same period in 2023. The increase was primarily due to higher taxable income in the 2024 period. The effective tax rate for 2024 was 10.6%, which was a decrease from the effective tax rate of 12.5% in 2023. The decrease in the effective tax rate was due primarily to greater utilization of solar tax credits in 2024 as compared to 2023.

Results of Operations for the Nine Months Ended June 30, 2024 and 2023

The Company reported net income of $9.9 million, or $1.45 per diluted share, for the nine months ended June 30, 2024 compared to net income of $8.9 million, or $1.29 per diluted share, for the nine months ended June 30, 2023. Excluding nonrecurring items, the Company reported net income of $9.4 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $1.37 (non-GAAP measure)⁽¹⁾ for the nine months ended June 30, 2024 compared to $8.9 million, or $1.29 per diluted share for the nine months ended June 30, 2023. The core banking segment reported net income of $13.3 million, or $1.94 per diluted share for the nine months ended June 30, 2024 compared to $12.3 million, or $1.79 for the nine months ended June 30, 2023. Excluding nonrecurring items, the core banking segment reported net income of $12.7 million (non-GAAP measure)⁽¹⁾, or $1.86 per diluted share for the nine months ended June 30, 2024 (non-GAAP measure)⁽¹⁾. Compared to $12.3 million, or $1.79 for the nine months ended June 30, 2023.

Net interest income decreased $3.1 million, or 6.6%, to $43.0 million for the nine months ended June 30, 2024 as compared to the same period 2023. The tax equivalent net interest margin for the nine months ended June 30, 2024 was 2.67% as compared to 3.13% for the same period in 2023. The decrease in net interest income was due to a $17.7 million increase in interest expense, partially offset by a $14.7 million increase in interest income. An average balance table including average asset yields and average liability costs is included in the table at the end of this release.

The Company recognized a provision for credit losses for loans of $1.7 million, a credit for unfunded lending commitments of $159,000 and a provision for credit losses for securities of $107,000 for the nine months ended June 30, 2024, compared to a provision for loan losses of $1.8 million for the same period in 2023. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $2.8 million from $13.9 million at September 30, 2023 to $16.8 million at June 30, 2024. The Company recognized net charge-offs of $224,000 for the nine months ended June 30, 2024, of which $15,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $320,000 in 2023, of which $264,000 was related to unguaranteed portions of SBA loans.
Noninterest income decreased $10.2 million for the nine months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to a $11.1 million decrease in mortgage banking income due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

Noninterest expense decreased $14.2 million for the nine months ended June 30, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense of $7.5 million and other operating expense of $4.3 million. The decrease in compensation and benefits expense was due primarily to a reduction in staffing related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. The decrease in other operating expense was due primarily to a $916,000 decrease in net loss on captive insurance due to the dissolution of the captive insurance company in 2023, a decrease in loss contingency for SBA-guaranteed loans of $755,000 in 2024 compared to an increase of $490,000 in 2023, and a decrease in loss contingency for restitution to mortgage borrowers of $300,000 in 2024 compared to an increase of $609,000 in 2023.

The Company recognized income tax expense of $873,000 for the nine months ended June 30, 2024 compared to tax expense of $747,000 for the same period in 2023. The increase is primarily due to higher taxable income in the 2024 period. The effective tax rate for 2024 was 8.1%, which was an increase from the effective tax rate of 7.7% in 2023. The effective tax rate is well below the statutory tax rate primarily due to the utilization of solar tax credits in both the 2024 and 2023 periods.

Comparison of Financial Condition at June 30, 2024 and September 30, 2023

Total assets increased $104.6 million, from $2.29 billion at September 30, 2023 to $2.39 billion at June 30, 2024. Net loans held for investment increased $56.7 million during the nine months ended June 30, 2024 due primarily to growth in residential construction and commercial business loans. Loans held for sale increased by $80.0 million from $45.9 million at September 30, 2023 to $125.9 million, primarily due to the transfer of approximately $108.6 million of residential first lien home equity lines of credit that are intended for sale. Residential mortgage loan servicing rights decreased $59.8 million during the nine months ended June 30, 2024, due to the sale of the entire residential mortgage loan servicing rights portfolio during the period.

Total liabilities increased $87.6 million due primarily to increases in FHLB borrowings of $61.8 million and increases in total deposits of $30.4 million. As of June 30, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 30.3% of total deposits and 12.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Common stockholders’ equity increased $17.0 million, from $151.0 million at September 30, 2023 to $168.0 million at June 30, 2024, due primarily to a $12.2 million decrease in accumulated other comprehensive loss and an increase in retained net income of $4.4 million. The decrease in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the nine months ended June 30, 2024, which resulted in an increase in the fair value of securities available for sale. At June 30, 2024 and September 30, 2023, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724

FIRST SAVINGS FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)


	Three Months Ended						Nine Months Ended
OPERATING DATA:	June 30,						June 30,
(In thousands, except share and per share data)		2024			2023			2024			2023

Total interest income	$	31,094		$	26,798		$	89,765		$	75,092
Total interest expense		16,560			11,933			46,780			29,054

Net interest income		14,534			14,865			42,985			46,038

Provision for credit losses - loans		501			441			1,684			1,797
Provision (credit) for unfunded lending commitments		158			-			(159	)		-
Provision for credit losses - securities		84			-			107			-

Net interest income after provision for credit losses		13,791			14,424			41,353			44,241

Total noninterest income		3,196			7,196			9,688			19,900
Total noninterest expense		12,431			18,965			40,248			54,475

Income before income taxes		4,556			2,655			10,793			9,666
Income tax expense		483			331			873			747

Net income	$	4,073		$	2,324		$	9,920		$	8,919

Net income per share, basic	$	0.60		$	0.34		$	1.45		$	1.30
Weighted average shares outstanding, basic		6,832,452			6,816,608			6,829,490			6,858,739

Net income per share, diluted	$	0.60		$	0.34		$	1.45		$	1.29
Weighted average shares outstanding, diluted		6,842,336			6,819,748			6,851,145			6,893,766


Performance ratios (annualized)
Return on average assets		0.69	%		0.29	%		0.57	%		0.50	%
Return on average equity		9.86	%		4.01	%		8.23	%		6.86	%
Return on average common stockholders' equity		9.86	%		4.01	%		8.23	%		6.86	%
Net interest margin (tax equivalent basis)		2.67	%		2.94	%		2.67	%		3.13	%
Efficiency ratio		70.11	%		88.62	%		76.41	%		83.45	%


							QTD						FYTD
FINANCIAL CONDITION DATA:	June 30,			March 31,			Increase			September 30,			Increase
(In thousands, except per share data)		2024			2024		(Decrease)				2023		(Decrease)

Total assets	$	2,393,491		$	2,364,983		$	28,508		$	2,288,854		$	104,637
Cash and cash equivalents		42,423			62,969			(20,546	)		30,845			11,578
Investment securities		238,785			240,142			(1,357	)		229,039			9,746
Loans held for sale		125,859			19,108			106,751			45,855			80,004
Gross loans		1,846,769			1,901,850			(55,081	)		1,787,143			59,626
Allowance for credit losses (1)		19,789			19,392			397			16,900			2,889
Interest earning assets		2,239,109			2,214,039			25,070			2,083,397			155,712
Goodwill		9,848			9,848			-			9,848			-
Core deposit intangibles		438			479			(41	)		561			(123	)
Loan servicing rights		2,860			3,028			(168	)		62,819			(59,959	)
Noninterest-bearing deposits		201,854			196,239			5,615			242,237			(40,383	)
Interest-bearing deposits (customer)		1,111,143			1,043,032			68,111			1,001,238			109,905
Interest-bearing deposits (brokered)		399,151			548,175			(149,024	)		438,319			(39,168	)
Federal Home Loan Bank borrowings		425,000			315,000			110,000			363,183			61,817
Subordinated debt and other borrowings		48,563			48,523			40			48,444			119
Total liabilities		2,225,491			2,199,927			25,564			2,137,873			87,618
Accumulated other comprehensive loss		(17,415	)		(17,144	)		(271	)		(29,587	)		12,172
Stockholders' equity		168,000			165,056			2,944			150,981			17,019

Book value per share	$	24.41		$	23.98			0.43		$	21.99		$	2.42
Tangible book value per share - Non-GAAP (2)		22.91			22.48			0.43			20.47			2.44

Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	5,049		$	5,053		$	(4	)	$	5,091		$	(42	)
Nonaccrual loans		11,705			10,585			1,120			8,857			2,848
Total nonaccrual loans	$	16,754		$	15,638		$	1,116		$	13,948		$	2,806
Accruing loans past due 90 days		-			-			-			-			-
Total non-performing loans		16,754			15,638			1,116			13,948			2,806
Foreclosed real estate		444			444			-			474			(30	)
Troubled debt restructurings classified as performing loans		-			-			-			1,266			(1,266	)
Total non-performing assets	$	17,198		$	16,082		$	1,116		$	15,688		$	1,510

Asset quality ratios:
Allowance for credit losses as a percent of total gross loans		1.07	%		1.02	%		0.05	%		0.95	%		0.13	%
Allowance for credit losses as a percent of nonperforming loans		118.12	%		124.01	%		(5.89	%)		121.16	%		(3.05	%)
Nonperforming loans as a percent of total gross loans		0.91	%		0.82	%		0.08	%		0.78	%		0.13	%
Nonperforming assets as a percent of total assets		0.72	%		0.68	%		0.04	%		0.69	%		0.03	%

(1) The Company adopted ASU 2016-13 Topic 326 on October 1, 2023. Allowance was determined using expected loss methodology (CECL) as of June 30, 2024, March 31, 2024 and December 31, 2024.
Allowance was determined using the previous incurred loss methodology as of September 30, 2023.

(2) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of these figures.

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.

	Three Months Ended						Fiscal Year Ended
	June 30,						June 30,
		2024			2023			2024			2023
Net Income(In thousands)
Net income attributable to the Company (non-GAAP)	$	3,534		$	2,324		$	9,381		$	8,919
Plus: Reversal of contingent liability, net of tax		212			-			212			-
Plus: Record Visa Class C shares, net of tax		327			-			327			-
Net income attributable to the Company (GAAP)	$	4,073		$	2,324		$	9,920		$	8,919

Net Income per Share, Diluted
Net income per share, diluted (non-GAAP)	$	0.52		$	0.34		$	1.37		$	1.29
Plus: Reversal of contingent liability, net of tax		0.03			-			0.03			-
Plus: Record Visa Class C shares, net of tax		0.05			-			0.05			-
Net income per share, diluted (GAAP)	$	0.60		$	0.34		$	1.45		$	1.29

Core Banking Net Income(In thousands)
Net income attributable to the Core Bank (non-GAAP)	$	4,176		$	2,921		$	12,735		$	12,304
Plus: Reversal of contingent liability, net of tax		212			-			212			-
Plus: Record Visa Class C shares, net of tax		327			-			327			-
Net income (loss) attributable to the Core Bank (GAAP)	$	4,715		$	2,921		$	13,274		$	12,304

Core Bank Net Income per Share, Diluted
Core Bank Net income per share, diluted (non-GAAP)	$	0.61		$	0.43		$	1.86		$	1.79
Plus: Reversal of contingent liability, net of tax		0.03			-			0.03			-
Plus: Record Visa Class C shares, net of tax		0.05			-			0.05			-
Core Bank Net income per share, diluted (GAAP)	$	0.69		$	0.43		$	1.94		$	1.79

Efficiency Ratio(In thousands)
Net interest income (GAAP)	$	14,534		$	14,865		$	42,985		$	46,038

Noninterest income (GAAP)		3,196			7,196			9,688			19,900

Noninterest expense (GAAP)		12,431			18,965			40,248			54,475

Efficiency ratio (GAAP)		70.11	%		85.97	%		76.41	%		82.62	%

Noninterest income (GAAP)	$	3,196		$	7,196		$	9,688		$	19,900
Less: Record Visa Class C shares		(436	)		-			(436	)		-
Noninterest income (Non-GAAP)		2,760			7,196			9,252			19,900

Noninterest expense (GAAP)	$	12,431		$	18,965		$	40,248		$	54,475
Plus: Reversal of contingent liability		283			-			283			-
Noninterest expense (Non-GAAP)		12,714			18,965			40,531			54,475

Efficiency ratio (excluding nonrecurring items) (non-GAAP)		73.52	%		85.97	%		77.59	%		82.62	%


Tangible Book Value Per Share	June 30,			March 31,			Increase			September 30,			Increase
(In thousands, except share and per share data)		2024			2024		(Decrease)				2023		(Decrease)

Stockholders' equity, net of noncontrolling interests (GAAP)	$	168,000		$	165,056		$	2,944		$	150,981		$	17,019
Less: goodwill and core deposit intangibles		(10,286	)		(10,327	)		41			(10,409	)		123
Tangible equity (non-GAAP)	$	157,714		$	154,729		$	2,985		$	140,572			17,142

Outstanding common shares		6,883,656			6,883,160		$	496			6,867,121			16,535

Tangible book value per share (non-GAAP)	$	22.91		$	22.48		$	0.43		$	20.47		$	2.44

Book value per share (GAAP)	$	24.41		$	23.98		$	0.43		$	21.99		$	2.42


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except per share data)		2024			2024			2023			2023			2023

Total cash and cash equivalents	$	42,423		$	62,969		$	33,366		$	30,845		$	42,475
Total investment securities		238,785			240,142			246,801			229,039			249,788
Total loans held for sale		125,859			19,108			22,866			45,855			63,142
Total loans, net of allowance for credit losses		1,826,980			1,882,458			1,841,953			1,770,243			1,691,289
Loan servicing rights		2,860			3,028			3,711			62,819			64,139
Total assets		2,393,491			2,364,983			2,308,092			2,288,854			2,260,421

Customer deposits	$	1,312,997		$	1,239,271		$	1,180,951		$	1,243,475		$	1,245,534
Brokered deposits		399,151			548,175			502,895			438,319			414,231
Total deposits		1,712,148			1,787,446			1,683,846			1,681,794			1,659,765
Federal Home Loan Bank borrowings		425,000			315,000			356,699			363,183			345,000

Common stock and additional paid-in capital	$	27,592		$	27,475		$	27,397		$	27,064		$	27,518
Retained earnings - substantially restricted		170,688			167,648			163,753			166,306			168,015
Accumulated other comprehensive income (loss)		(17,415	)		(17,144	)		(13,606	)		(29,587	)		(17,565	)
Unearned stock compensation		(999	)		(1,096	)		(1,194	)		(1,015	)		(1,113	)
Less treasury stock, at cost		(11,866	)		(11,827	)		(11,827	)		(11,787	)		(11,787	)
Total stockholders' equity		168,000			165,056			164,523			150,981			165,068

Outstanding common shares		6,883,656			6,883,160			6,883,160			6,867,121			6,865,921


	Three Months Ended
Summarized Consolidated Statements of Income	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except per share data)		2024			2024			2023			2023			2023

Total interest income	$	31,094		$	30,016		$	28,655		$	28,137		$	26,798
Total interest expense		16,560			15,678			14,542			12,601			11,933
Net interest income		14,534			14,338			14,113			15,536			14,865
Provision for credit losses - loans		501			713			412			815			441
Provision (credit) for unfunded lending commitments		158			(259	)		-			-			-
Provision for credit losses - securities		84			23			-			-			-
Net interest income after provision for credit losses		13,791			13,861			13,701			14,721			14,424

Total noninterest income		3,196			3,710			2,782			5,442			7,196
Total noninterest expense		12,431			11,778			16,039			21,647			18,965
Income (loss) before income taxes		4,556			5,793			444			(1,484	)		2,655
Income tax expense (benefit)		483			866			(476	)		(737	)		331
Net income (loss)	$	4,073		$	4,927		$	920		$	(747	)	$	2,324


Net income (loss) per share, basic	$	0.60		$	0.72		$	0.13		$	(0.11	)	$	0.34
Weighted average shares outstanding, basic		6,832,452			6,832,130			6,823,948			6,817,365			6,816,608

Net income (loss) per share, diluted	$	0.60		$	0.72		$	0.13		$	(0.11	)	$	0.34
Weighted average shares outstanding, diluted		6,842,336			6,859,611			6,839,704			6,837,919			6,819,748


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Income Detail	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)		2024			2024			2023			2023			2023

Service charges on deposit accounts	$	538		$	387		$	473		$	479		$	509
ATM and interchange fees		593			585			449			816			615
Net loss on sales of available for sale securities		-			-			-			(11	)		(540	)
Net unrealized gain on equity securities		419			6			38			11			11
Net gain on sales of loans, Small Business Administration		581			951			834			538			497
Mortgage banking income		49			53			89			3,018			4,668
Increase in cash surrender value of life insurance		353			333			329			311			279
Commission income		220			220			222			182			247
Real estate lease income		154			115			115			116			119
Net gain on premises and equipment		-			120			-			20			-
Gain from repurchase of subordinated debt		-			-			-			-			660
Other income		289			940			233			(38	)		131
Total noninterest income	$	3,196		$	3,710		$	2,782		$	5,442		$	7,196


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
Consolidated Performance Ratios (Annualized)		2024			2024			2023			2023			2023

Return on average assets		0.69	%		0.92	%		0.16	%		(0.13	%)		0.41	%
Return on average equity		9.86	%		13.06	%		2.42	%		(1.82	%)		5.60	%
Return on average common stockholders' equity		9.86	%		13.06	%		2.42	%		(1.82	%)		5.60	%
Net interest margin (tax equivalent basis)		2.67	%		2.66	%		2.69	%		3.03	%		2.94	%
Efficiency ratio		70.11	%		65.26	%		94.93	%		103.19	%		85.97	%


	As of or for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
Consolidated Asset Quality Ratios		2024			2024			2023			2023			2023

Nonperforming loans as a percentage of total loans		0.91	%		0.82	%		0.83	%		0.78	%		0.69	%
Nonperforming assets as a percentage of total assets		0.72	%		0.68	%		0.69	%		0.69	%		0.62	%
Allowance for credit losses as a percentage of total loans		1.07	%		1.02	%		1.01	%		0.95	%		0.99	%
Allowance for credit losses as a percentage of nonperforming loans		118.12	%		124.01	%		121.16	%		121.16	%		143.83	%
Net charge-offs to average outstanding loans		0.01	%		0.01	%		0.00	%		0.04	%		0.00	%


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)		2024			2024			2023			2023			2023

Core Banking Segment:
Net interest income	$	13,590		$	13,469		$	13,113		$	14,167		$	13,407
Provision (credit) for credit losses - loans		320			909			(49	)		1,266			880
Provision for unfunded lending commitments		64			(259	)		-			-			-
Provision for credit losses - securities		84			23			-			-			-
Net interest income after provision for credit losses		13,122			12,796			13,162			12,901			12,527
Noninterest income		2,474			2,537			1,679			2,136			1,965
Noninterest expense		10,192			10,093			10,252			13,559			11,010
Income before income taxes		5,404			5,240			4,589			1,478			3,482
Income tax expense		689			729			541			3			561
Net income	$	4,715		$	4,511		$	4,048		$	1,475		$	2,921

SBA Lending Segment (Q2 Business Capital, LLC):
Net interest income	$	944		$	869		$	1,003		$	990		$	1,098
Provision (credit) for credit losses - loans		181			(196	)		461			(451	)		(439	)
Provision for unfunded lending commitments		94			-			-			-			-
Provision for credit losses - securities		-			-			-			-			-
Net interest income after provision for credit losses		669			1,065			542			1,441			1,537
Noninterest income		722			1,173			1,003			367			580
Noninterest expense		2,239			1,685			2,146			2,907			2,107
Income (loss) before income taxes		(848	)		553			(601	)		(1,099	)		10
Income tax expense (benefit)		(206	)		137			(131	)		(273	)		(21	)
Net income (loss)	$	(642	)	$	416		$	(470	)	$	(826	)	$	31

Mortgage Banking Segment: (3)
Net interest income (loss)	$	-		$	-		$	(3	)	$	379		$	360
Provision for credit losses - loans		-			-			-			-			-
Provision for unfunded lending commitments		-			-			-			-			-
Provision for credit losses - securities		-			-			-			-			-
Net interest income (loss) after provision for credit losses		-			-			(3	)		379			360
Noninterest income		-			-			100			2,939			4,651
Noninterest expense		-			-			3,641			5,181			5,848
Loss before income taxes		-			-			(3,544	)		(1,863	)		(837	)
Income tax benefit		-			-			(886	)		(467	)		(209	)
Net loss	$	-		$	-		$	(2,658	)	$	(1,396	)	$	(628	)

(3) National mortgage banking operations were ceased in the quarter ended December 31, 2023 and subsequent immaterial mortgage lending activity is reported within the Core Banking segment.


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except percentage data)		2024			2024			2023			2023			2023

Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking	$	0.69		$	0.66		$	0.59		$	0.22		$	0.43
Net income (loss) per share, basic - SBA Lending (Q2 Business Capital, LLC)		(0.09	)		0.06			(0.07	)		(0.12	)		-
Net income (loss) per share, basic - Mortgage Banking		0.00			0.00			(0.40	)		(0.21	)		(0.09	)
Total net income (loss) per share, basic	$	0.60		$	0.72		$	0.12		$	(0.11	)	$	0.34

Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	0.69		$	0.66		$	0.59		$	0.22		$	0.43
Net income (loss) per share, diluted - SBA Lending (Q2 Business Capital, LLC)		(0.09	)		0.06			(0.07	)		(0.12	)		-
Net loss per share, diluted - Mortgage Banking		0.00			0.00			(0.40	)		(0.21	)		(0.09	)
Total net income (loss) per share, diluted	$	0.60		$	0.72		$	0.12		$	(0.11	)	$	0.34

Return on Average Assets by Segment (annualized) (4)
Core Banking		0.83	%		0.80	%		0.73	%		0.28	%		0.61	%
SBA Lending		(2.91	%)		1.81	%		(2.11	%)		(3.81	%)		0.15	%

Efficiency Ratio by Segment (annualized) (4)
Core Banking		63.45	%		63.06	%		69.31	%		83.17	%		71.62	%
SBA Lending		134.39	%		82.52	%		106.98	%		214.22	%		125.57	%


	Three Months Ended
Noninterest Expense Detail by Segment	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)		2024			2024			2023			2023			2023

Core Banking Segment:
Compensation	$	5,587		$	5,656		$	5,691		$	6,528		$	4,978
Occupancy		1,573			1,615			1,481			1,418			1,738
Advertising		253			205			189			404			334
Other		2,779			2,617			2,891			5,209			3,960
Total Noninterest Expense	$	10,192		$	10,093		$	10,252		$	13,559		$	11,010

SBA Lending Segment (Q2 Business Capital, LLC):
Compensation	$	1,893		$	1,933		$	1,826		$	1,533		$	1,803
Occupancy		51			58			91			68			70
Advertising		12			7			10			10			11
Other		283			(313	)		219			1,296			223
Total Noninterest Expense	$	2,239		$	1,685		$	2,146		$	2,907		$	2,107

Mortgage Banking Segment: (4)
Compensation	$	-		$	-		$	2,146		$	3,647		$	4,357
Occupancy		-			-			469			395			469
Advertising		-			-			119			129			191
Other		-			-			907			1,010			831
Total Noninterest Expense	$	-		$	-		$	3,641		$	5,181		$	5,848

(4) Ratios for Mortgage Banking Segment are not considered meaningful due to cessation of national mortgage banking operations in the quarter ended December 31, 2023.



SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):
	Three Months Ended
SBA Lending (Q2 Business Capital, LLC) Data	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands, except percentage data)		2024			2024			2023			2023			2023

Final funded loans guaranteed portion sold, SBA	$	7,515		$	15,144		$	14,098		$	8,431		$	7,721

Gross gain on sales of loans, SBA	$	811		$	1,443		$	1,303		$	809		$	780
Weighted average gross gain on sales of loans, SBA		10.79	%		9.53	%		9.24	%		9.60	%		10.10	%

Net gain on sales of loans, SBA (5)	$	581		$	951		$	834		$	538		$	497
Weighted average net gain on sales of loans, SBA		7.73	%		6.28	%		5.92	%		6.38	%		6.44	%

(5) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.


SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Average Balance Sheets	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)		2024			2024			2023			2023			2023
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	26,100		$	24,587		$	20,350		$	21,631		$	20,661
Loans		1,943,716			1,914,609			1,857,654			1,796,749			1,719,733
Investment securities - taxable		101,350			102,699			103,728			105,393			109,319
Investment securities - nontaxable		157,991			157,960			159,907			160,829			234,118
FRB and FHLB stock		24,986			24,986			24,968			24,939			24,509
Total interest-earning assets	$	2,254,143		$	2,224,841		$	2,166,607		$	2,109,541		$	2,108,340

Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	324		$	261		$	249		$	266		$	267
Loans		28,155			27,133			26,155			25,214			23,279
Investment securities - taxable		918			923			942			969			984
Investment securities - nontaxable		1,665			1,662			1,687			1,695			2,456
FRB and FHLB stock		519			499			74			428			423
Total interest income (tax equivalent basis)	$	31,581		$	30,478		$	29,107		$	28,572		$	27,409

Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		4.97	%		4.25	%		4.89	%		4.92	%		5.17	%
Loans		5.79	%		5.67	%		5.63	%		5.61	%		5.41	%
Investment securities - taxable		3.62	%		3.59	%		3.63	%		3.68	%		3.60	%
Investment securities - nontaxable		4.22	%		4.21	%		4.22	%		4.22	%		4.20	%
FRB and FHLB stock		8.31	%		7.99	%		1.19	%		6.86	%		6.90	%
Total interest-earning assets		5.60	%		5.48	%		5.37	%		5.42	%		5.20	%

Interest-bearing liabilities
Interest-bearing deposits	$	1,572,871		$	1,549,012		$	1,389,384		$	1,385,994		$	1,278,776
Fed funds purchased		-			-			-			76			11
Federal Home Loan Bank borrowings		351,227			333,275			440,786			353,890			434,182
Subordinated debt and other borrowings		48,537			48,497			48,458			48,406			49,339
Total interest-bearing liabilities	$	1,972,635		$	1,930,784		$	1,878,628		$	1,788,366		$	1,762,308

Interest expense:
Interest-bearing deposits	$	12,740		$	12,546		$	9,989		$	9,457		$	7,791
Fed funds purchased		-			-			-			1			-
Federal Home Loan Bank borrowings		3,021			2,298			3,769			2,459			3,446
Subordinated debt and other borrowings		799			833			784			684			696
Total interest expense	$	16,560		$	15,677		$	14,542		$	12,601		$	11,933

Weighted average cost (annualized):
Interest-bearing deposits		3.24	%		3.24	%		2.88	%		2.73	%		2.44	%
Fed funds purchased		0.00	%		0.00	%		0.00	%		5.26	%		0.00	%
Federal Home Loan Bank borrowings		3.44	%		2.76	%		3.42	%		2.78	%		3.17	%
Subordinated debt and other borrowings		6.58	%		6.87	%		6.47	%		5.65	%		5.64	%
Total interest-bearing liabilities		3.36	%		3.25	%		3.10	%		2.82	%		2.71	%

Net interest income (taxable equivalent basis)	$	15,021		$	14,801		$	14,565		$	15,971		$	15,476
Less: taxable equivalent adjustment		(487	)		(463	)		(452	)		(435	)		(611	)
Net interest income	$	14,534		$	14,338		$	14,113		$	15,536		$	14,865

Interest rate spread (tax equivalent basis, annualized)		2.24	%		2.23	%		2.27	%		2.60	%		2.49	%

Net interest margin (tax equivalent basis, annualized)		2.67	%		2.66	%		2.69	%		3.03	%		2.94	%

FAQ

What were First Savings Financial Group's earnings for Q3 2024?

First Savings Financial Group reported Q3 2024 net income of $4.1 million or $0.60 per diluted share.

How did FSFG's core banking segment perform in Q3 2024?

The core banking segment reported net income of $4.7 million or $0.69 per diluted share for Q3 2024.

What was FSFG's net interest income for Q3 2024?

Net interest income for Q3 2024 was $14.5 million, a decrease of 2.2% compared to the same period in 2023.

What caused the decrease in FSFG's noninterest income for Q3 2024?

The decrease in noninterest income was primarily due to a $4.6 million drop in mortgage banking income.

How did FSFG's total assets change by June 30, 2024?

Total assets increased by $104.6 million, reaching $2.39 billion as of June 30, 2024.

First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2024

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What were First Savings Financial Group's earnings for Q3 2024?

How did FSFG's core banking segment perform in Q3 2024?

What was FSFG's net interest income for Q3 2024?

What caused the decrease in FSFG's noninterest income for Q3 2024?

How did FSFG's total assets change by June 30, 2024?

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First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2024

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What were First Savings Financial Group's earnings for Q3 2024?

How did FSFG's core banking segment perform in Q3 2024?

What was FSFG's net interest income for Q3 2024?

What caused the decrease in FSFG's noninterest income for Q3 2024?

How did FSFG's total assets change by June 30, 2024?

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