First Savings Financial Group, Inc. Reports Financial Results for the Fiscal Year Ended September 30, 2024

Rhea-AI Summary

First Savings Financial Group (NASDAQ: FSFG) reported net income of $13.6 million, or $1.98 per diluted share, for fiscal year 2024, compared to $8.2 million, or $1.19 per diluted share, in 2023. The core banking segment's net income was $16.9 million. Net interest income decreased $3.5 million to $58.1 million, with tax equivalent net interest margin declining to 2.68% from 3.10%. Total assets increased $161.5 million to $2.45 billion, with net loans held for investment growing by $193.6 million. The company ceased national mortgage banking operations and implemented expense reduction strategies, resulting in decreased noninterest expenses of $23.2 million.

Positive

• Net income increased 65.9% to $13.6 million in FY2024 from $8.2 million in FY2023
• Core banking segment net income grew to $16.9 million from $14.9 million year-over-year
• Total assets increased by $161.5 million to $2.45 billion
• Net loans held for investment grew by $193.6 million
• Noninterest expense decreased by $23.2 million due to operational restructuring

Negative

• Net interest income decreased by $3.5 million (5.7%) to $58.1 million
• Net interest margin declined to 2.68% from 3.10%
• Nonperforming loans increased by $3.0 million to $16.9 million
• Noninterest income decreased by $12.8 million
• Provision for credit losses increased to $3.5 million from $2.6 million

Insights

Financial Analyst

First Savings Financial Group's fiscal 2024 results show mixed performance with notable improvements. Net income increased significantly to $13.6 million ($1.98 per diluted share) from $8.2 million in 2023, despite challenges in the interest rate environment. The core banking segment performed well, with net income of $16.9 million.

Key metrics reveal some concerns: net interest margin declined to 2.68% from 3.10% and nonperforming loans increased by $3.0 million. However, the company's strategic decisions, including the cessation of national mortgage banking operations and implementation of expense reduction strategies, have positioned it for potentially stronger performance in 2025.

The balance sheet shows healthy growth with total assets increasing by $161.5 million and net loans held for investment up by $193.6 million. The company maintains strong capitalization and has improved its capital position with stockholders' equity increasing by $26.1 million.

JEFFERSONVILLE, Ind., Oct. 24, 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 $13.6 million, or $1.98 per diluted share, for the year ended September 30, 2024, compared to net income of $8.2 million, or $1.19 per diluted share, for the year ended September 30, 2023. The core banking segment reported net income of $16.9 million, or $2.47 per diluted share for the year ended September 30, 2024, compared to $14.9 million, or $2.18 per diluted share for the year ended September 30, 2023.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “Fiscal 2024 was, in many ways, a year of rebuilding, repositioning and refinement. A summary of these enhancement actions is provided below. While we’re not entirely pleased with the financial performance in fiscal 2024, we are confident that the Company is well positioned to better perform in fiscal 2025 and the years thereafter regardless of the economic environment. For fiscal 2025 we’ll remain focused on core banking; strong asset quality; selective high-quality lending; core deposit growth; increased SBA lending volume; continued improvement of liquidity, capital and interest rate sensitivity positions; and strategic opportunities. We believe the efforts of fiscal 2024 along with the focus for fiscal 2025 will deliver enhanced shareholder value. Additionally, we’ll continue to evaluate options and strategies that we believe will further position the Company for future success and deliver shareholder value.”

Enhancements Actions During Fiscal Year Ended September 30, 2024

• Converted the core operating system immediately prior to the beginning of fiscal 2024 and committed to effectively adapt to the new system and gain efficiencies and expense reductions therewith.
• Ceased national mortgage banking operations in the first fiscal quarter, including sale of the residential mortgage servicing rights portfolio.
• Implemented additional expense reduction and containment strategies, which were effective.
• Experienced the net interest margin floor in the second fiscal quarter and recognized expansion in the subsequent quarters, in addition to a slowed paced of deposit migration to higher cost types.
• Maintained a balance sheet position that is expected to benefit in a potential decreasing rate environment but having limited exposure to potential increasing rates.
• Remained disciplined in our lending philosophy with respect to both rate expectations and credit quality.
• Enhanced our review of asset quality, which remains strong, in order to prepare for any potential financial downturn that may occur.
• Enhanced SBA Lending business development staff with new and replacement hires throughout the fiscal year, plus decreased surplus support staff at the end of the fourth fiscal quarter.

Results of Operations for the Fiscal Years Ended September 30, 2024 and 2023

Net interest income decreased $3.5 million, or 5.7%, to $58.1 million for the year ended September 30, 2024 as compared to the prior year. The tax equivalent net interest margin for the year ended September 30, 2024 was 2.68% as compared to 3.10% for the prior year. The decrease in net interest income was due to a $22.3 million increase in interest expense, partially offset by an $18.8 million increase in interest income. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for credit losses for loans of $3.5 million, a credit for unfunded lending commitments of $421,000, and a provision for credit losses for securities of $21,000 for the year ended September 30, 2024, compared to a provision for loan losses of $2.6 million only for the prior year. The provision for credit losses for loans increased primarily due to loan growth and the effects of adopting the Current Expected Credit Loss (CECL) methodology during the year ended September 30, 2024. The Company recognized net charge-offs totaling $527,000 during the year, of which $104,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $1.1 million during the prior year, of which $872,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $3.0 million from $13.9 million at September 30, 2023 to $16.9 million at September 30, 2024.

Noninterest income decreased $12.8 million for the year ended September 30, 2024 as compared to the prior year. The decrease was due primarily to a $14.1 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 $23.2 million for the year ended September 30, 2024 as compared to the prior year. The decrease was due primarily to decreases in compensation and benefits, data processing expense and other operating expenses of $12.0 million, $2.2 million and $7.8 million, respectively. 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 data processing expense was due primarily to expenses recognized in the prior year related to the implementation of the new core operating system in August 2023. The decrease in other operating expense was due primarily to a $1.9 decrease in net loss on captive insurance operations due to the dissolution of the captive insurance company in September 2023; a decrease in loss contingency accrual for SBA-guaranteed loans of $754,000 in 2024 compared to an increase of $1.5 million in 2023; a decrease in the loss contingency accrual for restitution to mortgage borrowers of $283,000 in 2024 compared to an increase of $609,000 in 2023; and a decrease of $853,000 in loan expense for 2024 as compared to 2023 due primarily to lower mortgage loan originations related to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $1.0 million for the year ended September 30, 2024 compared to tax expense of $10,000 for the prior year. The increase is primarily due to higher taxable income in the 2024 period. The effective tax rate for 2024 was 7.0%, which was an increase from the effective tax rate of 0.1% in 2023. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2024 and 2023 periods.

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

The Company reported net income of $3.7 million, or $0.53 per diluted share, for the three months ended September 30, 2024, compared to a net loss of $747,000, or $0.11 per diluted share, for the three months ended September 30, 2023. The core banking segment reported net income of $4.1 million, or $0.60 per diluted share, for the three months ended September 30, 2024, compared to $2.3 million, or $0.33 per diluted share, for the three months ended September 30, 2023.

Net interest income decreased $459,000, or 3.0%, to $15.1 million for the three months ended September 30, 2024 as compared to the same period in 2023. The tax equivalent net interest margin was 2.72% for the three months ended September 30, 2024 as compared to 3.03% for the same period in 2023. The decrease in net interest income was due to a $4.5 million increase in interest expense, partially offset by a $4.1 million increase in interest income. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for credit losses for loans of $1.8 million, a credit for unfunded lending commitments of $262,000, and a credit for credit losses for securities of $86,000 for the three months ended September 30, 2024, compared to a provision for loan losses of $815,000 only for the same period in 2023. The provision for credit losses for loans increased primarily due to loan growth and the effects of adopting the Current Expected Credit Loss (CECL) methodology during the year ended September 30, 2024. The Company recognized net charge-offs totaling $304,000 during the 2024 period, of which $120,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $753,000 during the 2023 period, of which $609,000 was related to unguaranteed portions of SBA loans.

Noninterest income decreased $2.6 million for the three months ended September 30, 2024 as compared to the same period in 2023. The decrease was due primarily to a $3.0 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 $9.0 million for the three months ended September 30, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense, data processing expense, and other operating expenses of $4.5 million, $1.5 million and $3.5 million, respectively. 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 data processing expense was due primarily to expenses recognized in the prior year period related to the implementation of the new core operating system in August 2023. The decrease in other operating expense was due primarily to a $978,000 decrease in the net loss on captive insurance operations due to the dissolution of the captive insurance company in September 2023; a decrease in loss contingency accrual for SBA-guaranteed loans of $14,000 in 2024 compared to an increase of $1.0 million in 2023; and a decrease of $270,000 in loan expense for 2024 as compared to 2023 due primarily to lower mortgage loan originations related to the cessation of the national mortgage banking operations in the quarter ended December 31, 2023.

The Company recognized income tax expense of $145,000 for the three months ended September 30, 2024 compared to income tax benefit of $737,000 for the same period in 2023. The increase was primarily due to higher taxable income in the 2024 period.

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

Total assets increased $161.5 million, from $2.29 billion at September 30, 2023 to $2.45 billion at September 30, 2024. Net loans held for investment increased $193.6 million during the year ended September 30, 2024 due primarily to growth in residential real estate, residential construction, and commercial real estate loans. Loans held for sale decreased by $20.1 million from $45.9 million at September 30, 2023 to $25.7 million, primarily due to the winddown of the national mortgage banking operations. Residential mortgage loan servicing rights decreased $59.8 million during the year ended September 30, 2024, due to the sale of the entire residential mortgage loan servicing rights portfolio during the year.

Total liabilities increased $135.4 million due primarily to increases in total deposits of $199.1 million, which included an increase in brokered deposits of $70.8 million, partially offset by a decrease in FHLB borrowings of $61.5 million. As of September 30, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 30.1% of total deposits and 13.7% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Common stockholders’ equity increased $26.1 million, from $151.0 million at September 30, 2023 to $177.1 million at September 30, 2024, due primarily to a $18.4 million decrease in accumulated other comprehensive loss and an increase in retained net income of $7.0 million. The decrease in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the year ended September 30, 2024, which resulted in an increase in the fair value of securities available for sale. At September 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									Years Ended
OPERATING DATA:	September 30,									September 30,
(In thousands, except share and per share data)		2024				2023					2024				2023
Total interest income	$	32,223			$	28,137				$	121,988			$	103,229
Total interest expense		17,146				12,601					63,926				41,655
Net interest income		15,077				15,536					58,062				61,574
Provision for credit losses - loans		1,808				815					3,492				2,612
Provision (credit) for unfunded lending commitments		(262	)			-					(421	)			-
Provision (credit) for credit losses - securities		(86	)			-					21				-
Total provision for credit losses		1,460				815					3,092				2,612
Net interest income after provision for credit losses		13,617				14,721					54,970				58,962
Total noninterest income		2,842				5,442					12,530				25,342
Total noninterest expense		12,642				21,647					52,890				76,122
Income (loss) before income taxes		3,817				(1,484	)				14,610				8,182
Income tax expense (benefit)		145				(737	)				1,018				10
Net income (loss)	$	3,672			$	(747	)			$	13,592			$	8,172
Net income (loss) per share, basic	$	0.54			$	(0.11	)			$	1.99			$	1.19
Weighted average shares outstanding, basic		6,833,376				6,817,365					6,830,466				6,848,311
Net income (loss) per share, diluted	$	0.53			$	(0.11	)			$	1.98			$	1.19
Weighted average shares outstanding, diluted		6,877,518				6,837,919					6,856,520				6,880,072
Performance ratios (annualized)
Return on average assets		0.61	%			(0.13	%)				0.58	%			0.37	%
Return on average equity		8.52	%			(1.82	%)				8.31	%			5.04	%
Return on average common stockholders' equity		8.52	%			(1.82	%)				8.31	%			5.04	%
Net interest margin (tax equivalent basis)		2.72	%			3.03	%				2.68	%			3.10	%
Efficiency ratio		70.55	%			103.19	%				74.92	%			87.58	%
										QTD								FYTD
FINANCIAL CONDITION DATA:	September 30,				June 30,					Increase				September 30,				Increase
(In thousands, except per share data)		2024				2024				(Decrease)					2023			(Decrease)
Total assets	$	2,450,368			$	2,393,491				$	56,877			$	2,288,854			$	161,514
Cash and cash equivalents		52,142				42,423					9,719				30,845				21,297
Investment securities		249,719				238,785					10,934				229,039				20,680
Loans held for sale		25,716				125,859					(100,143	)			45,855				(20,139	)
Gross loans		1,985,146				1,846,769					138,377				1,787,143				198,003
Allowance for credit losses (1)		21,294				19,789					1,505				16,900				4,394
Interest earning assets		2,277,512				2,239,109					38,403				2,083,397				194,115
Goodwill		9,848				9,848					-				9,848				-
Core deposit intangibles		398				438					(40	)			561				(163	)
Loan servicing rights		2,754				2,860					(106	)			62,819				(60,065	)
Noninterest-bearing deposits		191,528				201,854					(10,326	)			242,237				(50,709	)
Interest-bearing deposits (customer)		1,180,196				1,111,143					69,053				1,001,238				178,958
Interest-bearing deposits (brokered)		509,157				399,151					110,006				438,319				70,838
Federal Home Loan Bank borrowings		301,640				425,000					(123,360	)			363,183				(61,543	)
Subordinated debt and other borrowings		48,603				48,563					40				48,444				159
Total liabilities		2,273,253				2,225,491					47,762				2,137,873				135,380
Accumulated other comprehensive loss		(11,195	)			(17,415	)				6,220				(29,587	)			18,392
Stockholders' equity		177,115				168,000					9,115				150,981				26,134
Book value per share	$	25.72			$	24.41				$	1.31			$	21.99			$	3.73
Tangible book value per share - Non-GAAP (2)		24.23				22.91					1.32				20.47				3.76
Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	5,036			$	5,049				$	(13	)		$	5,091			$	(55	)
Nonaccrual loans		11,906				11,705					201				8,857				3,049
Total nonaccrual loans	$	16,942			$	16,754				$	188			$	13,948			$	2,994
Accruing loans past due 90 days		-				-					-				-				-
Total non-performing loans		16,942				16,754					188				13,948				2,994
Foreclosed real estate		444				444					-				474				(30	)
Troubled debt restructurings classified as performing loans		-				-					-				1,266				(1,266	)
Total non-performing assets	$	17,386			$	17,198				$	188			$	15,688			$	1,698
Asset quality ratios:
Allowance for credit losses as a percent of total gross loans		1.07	%			1.07	%				0.00	%			0.95	%			0.13	%
Allowance for credit losses as a percent of nonperforming loans		125.69	%			118.12	%				7.57	%			121.16	%			4.52	%
Nonperforming loans as a percent of total gross loans		0.85	%			0.91	%				(0.05	%)			0.78	%			0.07	%
Nonperforming assets as a percent of total assets		0.71	%			0.72	%				(0.01	%)			0.69	%			0.02	%
(1) The Company adopted ASU 2016-13 Topic 326 on October 1, 2023. Allowance was determined using current expected credit loss methodology (CECL) for the quarters ended September, June, and March 2024 and December 2023. 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 evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the 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
	September 30,									September 30,
		2024				2023					2024				2023
Net Income (In thousands)
Net income attributable to the Company (non-GAAP)	$	3,660			$	2,824				$	11,674			$	12,731
Plus: Reversal of contingent liability, net of tax effect		-				-					212				-
Plus: Record Visa Class C shares, net of tax effect		15				-					342				-
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		-				-					492				-
Plus: Adjustment to MSR valuation allowance, net of tax effect		-				-					583				-
Plus: Gain (loss) on premises and equipment, net of tax effect		(3	)			-					87				-
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-				-					117				-
Plus: Distribution from equity investment, net of tax effect		-				-					85				-
Plus: Gain from repurchase of subordinated debt, net of tax effect		-				-					-				513
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		-				-					-				(429	)
Less: Data processing system conversion, net of tax effect		-				(979	)				-				(1,119	)
Less: MSR valuation allowance for intended sale, net of tax effect		-				(598	)				-				(598	)
Less: Loss contingency for SBA-guaranteed loans, net of tax effect		-				(779	)				-				(1,160	)
Less: Mortgage banking loss contingencies, net of tax effect		-				(296	)				-				(847	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		-				(919	)				-				(919	)
Net income attributable to the Company (GAAP)	$	3,672			$	(747	)			$	13,592			$	8,172
Net Income per Share, Diluted
Net income per share, diluted (non-GAAP)	$	0.53			$	0.41				$	1.70			$	1.85
Plus: Reversal of contingent liability, net of tax effect		-				-					0.03				-
Plus: Record Visa Class C shares, net of tax effect		-				-					0.05				-
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		-				-					0.07				-
Plus: Adjustment to MSR valuation allowance, net of tax effect		-				-					0.09				-
Plus: Gain (loss) on premises and equipment, net of tax effect		-				-					0.01				-
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-				-					0.02				-
Plus: Distribution from equity investment, net of tax effect		-				-					0.01				-
Plus: Gain from repurchase of subordinated debt, net of tax effect		-				-					-				0.07
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		-				-					-				(0.06	)
Less: Data processing system conversion, net of tax effect		-				(0.14	)				-				(0.16	)
Less: MSR valuation allowance for intended sale, net of tax effect		-				(0.09	)				-				(0.09	)
Less: Loss contingency for SBA-guaranteed loans, net of tax effect		-				(0.11	)				-				(0.17	)
Less: Mortgage banking loss contingencies, net of tax effect		-				(0.05	)				-				(0.12	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		-				(0.13	)				-				(0.13	)
Net income per share, diluted (GAAP)	$	0.53			$	(0.11	)			$	1.98			$	1.19
Core Banking Net Income (In thousands)
Net income attributable to the Core Bank (non-GAAP)	$	4,081			$	5,046				$	15,449			$	18,338
Plus: Reversal of contingent liability, net of tax effect		-				-					212				-
Plus: Record Visa Class C shares, net of tax effect		15				-					342				-
Plus: Adjustment to MSR valuation allowance, net of tax effect		-				-					583				-
Plus: Gain (loss) on premises and equipment, net of tax effect		(3	)			-					87				-
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-				-					117				-
Plus: Distribution from equity investment, net of tax effect		-				-					85				-
Plus: Gain from repurchase of subordinated debt, net of tax effect		-				-					-				513
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		-				-					-				(429	)
Less: Data processing system conversion, net of tax effect		-				(979	)				-				(1,119	)
Less: MSR valuation allowance for intended sale, net of tax effect		-				(598	)				-				(598	)
Less: Mortgage banking loss contingencies, net of tax effect		-				(296	)				-				(847	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		-				(919	)				-				(919	)
Net income (loss) attributable to the Core Bank (GAAP)	$	4,093			$	2,254				$	16,875			$	14,939
Core Bank Net Income per Share, Diluted
Core Bank net income per share, diluted (non-GAAP)	$	0.60			$	0.74				$	2.26			$	2.67
Plus: Reversal of contingent liability, net of tax effect		-				-					0.03				-
Plus: Record Visa Class C shares, net of tax effect		-				-					0.05				-
Plus: Adjustment to MSR valuation allowance, net of tax effect		-				-					0.09				-
Plus: Gain (loss) on premises and equipment, net of tax effect		-				-					0.01				-
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-				-					0.02				-
Plus: Distribution from equity investment, net of tax effect		-				-					0.01				-
Plus: Gain from repurchase of subordinated debt, net of tax effect		-				-					-				0.07
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		-				-					-				(0.06	)
Less: Data processing system conversion, net of tax effect		-				(0.14	)				-				(0.16	)
Less: MSR valuation allowance for intended sale, net of tax effect		-				(0.09	)				-				(0.09	)
Less: Mortgage banking loss contingencies, net of tax effect		-				(0.05	)				-				(0.12	)
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		-				(0.13	)				-				(0.13	)
Core Bank net income per share, diluted (GAAP)	$	0.60			$	0.33				$	2.47			$	2.18
Efficiency Ratio (In thousands)
Net interest income (GAAP)	$	15,077			$	15,536				$	58,062			$	61,574
Noninterest income (GAAP)		2,842				5,442					12,530				25,342
Noninterest expense (GAAP)		12,646				21,647					52,890				76,122
Efficiency ratio (GAAP)		70.55	%			103.19	%				74.92	%			87.58	%
Noninterest income (GAAP)	$	2,842			$	5,442				$	12,530			$	25,342
Plus: Record Visa Class C shares		20				-					456				-
Plus: Adjustment to MSR valuation allowance		-				-					777				-
Plus: Gain (loss) on premises and equipment		(4	)			-					116				-
Plus: Distribution from equity investment		-				-					113				-
Plus: Gain from repurchase of subordinated debt		-				-					-				684
Less: Net loss on sales of available for sale securities and time deposits		-				-					-				(572	)
Less: MSR valuation allowance for intended sale		-				(797	)				-				(797	)
Noninterest income (Non-GAAP)		2,858				4,645					13,992				24,657
Noninterest expense (GAAP)	$	12,642			$	21,647				$	52,890			$	76,122
Plus: Reversal of contingent liability		-				-					283				-
Plus: Decrease in loss contingency for SBA-guaranteed loans		-				-					656				-
Plus: Adjustment to previous data processing contract termination accrual		-				-					156				-
Less: Data processing system conversion		-				(1,305	)				-				(1,492	)
Less: Loss contingency for SBA-guaranteed loans		-				(1,039	)				-				(1,547	)
Less: Mortgage banking loss contingencies		-				(395	)				-				(1,129	)
Less: Professional fees related to mortgage banking loss contingencies		-				(1,225	)				-				(1,225	)
Noninterest expense (Non-GAAP)		12,642				17,683					53,985				70,729
Efficiency ratio (excluding nonrecurring items) (non-GAAP)		70.49	%			87.62	%				74.92	%			82.02	%
Tangible Book Value Per Share	September 30,				June 30,					Increase				September 30,				Increase
(In thousands, except share and per share data)		2024				2024				(Decrease)					2023			(Decrease)
Stockholders' equity, net of noncontrolling interests (GAAP)	$	177,115			$	168,000				$	9,115			$	150,981			$	26,134
Less: goodwill and core deposit intangibles		(10,246	)			(10,286	)				40				(10,409	)			163
Tangible equity (non-GAAP)	$	166,869			$	157,714				$	9,155			$	140,572				26,297
Outstanding common shares		6,887,106				6,883,656				$	3,450				6,867,121				19,985
Tangible book value per share (non-GAAP)	$	24.23			$	22.91				$	1.32			$	20.47			$	3.76
Book value per share (GAAP)	$	25.72			$	24.41				$	1.31			$	21.99			$	3.73
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	September 30,				June 30,					March 31,				December 31,				September 30,
(In thousands, except per share data)		2024				2024					2023				2023				2023
Total cash and cash equivalents	$	52,142			$	42,423				$	62,969			$	33,366			$	30,845
Total investment securities		249,719				238,785					240,142				246,801				229,039
Total loans held for sale		25,716				125,859					19,108				22,866				45,855
Total loans, net of allowance for credit losses		1,963,852				1,826,980					1,882,458				1,841,953				1,770,243
Loan servicing rights		2,754				2,860					3,028				3,711				62,819
Total assets		2,450,368				2,393,491					2,364,983				2,308,092				2,288,854
Customer deposits	$	1,371,724			$	1,312,997				$	1,239,271			$	1,180,951			$	1,243,475
Brokered deposits		509,157				399,151					548,175				502,895				438,319
Total deposits		1,880,881				1,712,148					1,787,446				1,683,846				1,681,794
Federal Home Loan Bank borrowings		301,640				425,000					315,000				356,699				363,183
Common stock and additional paid-in capital	$	27,725			$	27,592				$	27,475			$	27,397			$	27,064
Retained earnings - substantially restricted		173,337				170,688					167,648				163,753				166,306
Accumulated other comprehensive income (loss)		(11,195	)			(17,415	)				(17,144	)			(13,606	)			(29,587	)
Unearned stock compensation		(901	)			(999	)				(1,096	)			(1,194	)			(1,015	)
Less treasury stock, at cost		(11,851	)			(11,866	)				(11,827	)			(11,827	)			(11,787	)
Total stockholders' equity		177,115				168,000					165,056				164,523				150,981
Outstanding common shares		6,887,106				6,883,656					6,883,160				6,883,160				6,867,121
	Three Months Ended
Summarized Consolidated Statements of Income	September 30,				June 30,					March 31,				December 31,				September 30,
(In thousands, except per share data)		2024				2024					2023				2023				2023
Total interest income	$	32,223			$	31,094				$	30,016			$	28,655			$	28,137
Total interest expense		17,146				16,560					15,678				14,542				12,601
Net interest income		15,077				14,534					14,338				14,113				15,536
Provision for credit losses - loans		1,808				501					713				412				815
Provision (credit) for unfunded lending commitments		(262	)			158					(259	)			-				-
Provision (credit) for credit losses - securities		(86	)			84					23				-				-
Net interest income after provision for credit losses		13,617				13,791					13,861				13,701				14,721
Total noninterest income		2,842				3,196					3,710				2,782				5,442
Total noninterest expense		12,642				12,431					11,778				16,039				21,647
Income (loss) before income taxes		3,817				4,556					5,793				444				(1,484	)
Income tax expense (benefit)		145				483					866				(476	)			(737	)
Net income (loss)	$	3,672			$	4,073				$	4,927			$	920			$	(747	)
Net income (loss) per share, basic	$	0.54			$	0.60				$	0.72			$	0.13			$	(0.11	)
Weighted average shares outstanding, basic		6,833,376				6,832,452					6,832,130				6,823,948				6,817,365
Net income (loss) per share, diluted	$	0.53			$	0.60				$	0.72			$	0.13			$	(0.11	)
Weighted average shares outstanding, diluted		6,877,518				6,842,336					6,859,611				6,839,704				6,837,919
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Income Detail	September 30,				June 30,					March 31,				December 31,				September 30,
(In thousands)		2024				2024					2023				2023				2023
Service charges on deposit accounts	$	552			$	538				$	387			$	473			$	479
ATM and interchange fees		642				593					585				449				816
Net loss on sales of available for sale securities		-				-					-				-				(11	)
Net unrealized gain on equity securities		28				419					6				38				11
Net gain on sales of loans, Small Business Administration		647				581					951				834				538
Mortgage banking income		6				49					53				89				3,018
Increase in cash surrender value of life insurance		363				353					333				329				311
Commission income		294				220					220				222				182
Real estate lease income		122				154					115				115				116
Net gain on premises and equipment		(4	)			-					120				-				20
Other income		192				289					940				233				(38	)
Total noninterest income	$	2,842			$	3,196				$	3,710			$	2,782			$	5,442
	Three Months Ended
	September 30,				June 30,					March 31,				December 31,				September 30,
Consolidated Performance Ratios (Annualized)		2024				2024					2023				2023				2023
Return on average assets		0.61	%			0.69	%				0.92	%			0.16	%			(0.13	%)
Return on average equity		8.52	%			9.86	%				13.06	%			2.42	%			(1.82	%)
Return on average common stockholders' equity		8.52	%			9.86	%				13.06	%			2.42	%			(1.82	%)
Net interest margin (tax equivalent basis)		2.72	%			2.67	%				2.66	%			2.69	%			3.03	%
Efficiency ratio		70.55	%			70.11	%				65.26	%			94.93	%			103.19	%
	As of or for the Three Months Ended
	September 30,				June 30,					March 31,				December 31,				September 30,
Consolidated Asset Quality Ratios		2024				2024					2023				2023				2023
Nonperforming loans as a percentage of total loans		0.85	%			0.91	%				0.82	%			0.83	%			0.78	%
Nonperforming assets as a percentage of total assets		0.71	%			0.72	%				0.68	%			0.69	%			0.69	%
Allowance for credit losses as a percentage of total loans		1.07	%			1.07	%				1.02	%			1.01	%			0.95	%
Allowance for credit losses as a percentage of nonperforming loans		125.69	%			118.12	%				124.01	%			121.16	%			121.16	%
Net charge-offs to average outstanding loans		0.02	%			0.01	%				0.01	%			0.00	%			0.04	%
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	September 30,				June 30,					March 31,				December 31,				September 30,
(In thousands)		2024				2024					2023				2023				2023
Core Banking Segment:
Net interest income	$	14,083			$	13,590				$	13,469			$	13,113			$	14,167
Provision (credit) for credit losses - loans		1,339				320					909				(49	)			1,266
Provision (credit) for unfunded lending commitments		78				64					(259	)			-				-
Provision (credit) for credit losses - securities		(86	)			84					23				-				-
Net interest income after provision for credit losses		12,752				13,122					12,796				13,162				12,901
Noninterest income		2,042				2,474					2,537				1,679				2,136
Noninterest expense		10,400				10,192					10,093				10,252				13,559
Income before income taxes		4,394				5,404					5,240				4,589				1,478
Income tax expense		301				689					729				541				3
Net income	$	4,093			$	4,715				$	4,511			$	4,048			$	1,475
SBA Lending Segment (Q2 Business Capital, LLC):
Net interest income	$	994			$	944				$	869			$	1,003			$	990
Provision (credit) for credit losses - loans		469				181					(196	)			461				(451	)
Provision (credit) for unfunded lending commitments		(340	)			94					-				-				-
Net interest income after provision for credit losses		865				669					1,065				542				1,441
Noninterest income		800				722					1,173				1,003				367
Noninterest expense		2,242				2,239					1,685				2,146				2,907
Income (loss) before income taxes		(577	)			(848	)				553				(601	)			(1,099	)
Income tax expense (benefit)		(156	)			(206	)				137				(131	)			(273	)
Net income (loss)	$	(421	)		$	(642	)			$	416			$	(470	)		$	(826	)
Mortgage Banking Segment: (3)
Net interest income (loss)	$	-			$	-				$	-			$	(3	)		$	379
Provision for credit losses - loans		-				-					-				-				-
Provision for unfunded lending commitments		-				-					-				-				-
Net interest income (loss) after provision for credit losses		-				-					-				(3	)			379
Noninterest income		-				-					-				100				2,939
Noninterest expense		-				-					-				3,641				5,181
Loss before income taxes		-				-					-				(3,544	)			(1,863	)
Income tax benefit		-				-					-				(886	)			(467	)
Net loss	$	-			$	-				$	-			$	(2,658	)		$	(1,396	)
(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	September 30,				June 30,					March 31,				December 31,				September 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	$	0.60			$	0.69				$	0.66			$	0.59			$	0.22
Net income (loss) per share, basic - SBA Lending (Q2 Business Capital, LLC)		(0.06	)			(0.09	)				0.06				(0.07	)			(0.12	)
Net income (loss) per share, basic - Mortgage Banking		0.00				0.00					0.00				(0.40	)			(0.21	)
Total net income (loss) per share, basic	$	0.54			$	0.60				$	0.72			$	0.12			$	(0.11	)
Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	0.60			$	0.69				$	0.66			$	0.59			$	0.22
Net income (loss) per share, diluted - SBA Lending (Q2 Business Capital, LLC)		(0.06	)			(0.09	)				0.06				(0.07	)			(0.12	)
Net loss per share, diluted - Mortgage Banking		0.00				0.00					0.00				(0.40	)			(0.21	)
Total net income (loss) per share, diluted	$	0.54			$	0.60				$	0.72			$	0.12			$	(0.11	)
Return on Average Assets by Segment (annualized) (4)
Core Banking		0.71	%			0.83	%				0.80	%			0.73	%			0.28	%
SBA Lending		(1.71	%)			(2.91	%)				1.81	%			(2.11	%)			(3.81	%)
Efficiency Ratio by Segment (annualized) (4)
Core Banking		64.50	%			63.45	%				63.06	%			69.31	%			83.17	%
SBA Lending		124.97	%			134.39	%				82.52	%			106.98	%			214.22	%
	Three Months Ended
Noninterest Expense Detail by Segment	September 30,				June 30,					March 31,				December 31,				September 30,
(In thousands)		2024				2024					2023				2023				2023
Core Banking Segment:
Compensation	$	5,400			$	5,587				$	5,656			$	5,691			$	6,528
Occupancy		1,554				1,573					1,615				1,481				1,418
Advertising		399				253					205				189				404
Other		3,047				2,779					2,617				2,891				5,209
Total Noninterest Expense	$	10,400			$	10,192				$	10,093			$	10,252			$	13,559
SBA Lending Segment (Q2 Business Capital, LLC):
Compensation	$	1,854			$	1,893				$	1,933			$	1,826			$	1,533
Occupancy		55				51					58				91				68
Advertising		17				12					7				10				10
Other		316				283					(313	)			219				1,296
Total Noninterest Expense	$	2,242			$	2,239				$	1,685			$	2,146			$	2,907
Mortgage Banking Segment: (4)
Compensation	$	-			$	-				$	-			$	2,146			$	3,647
Occupancy		-				-					-				469				395
Advertising		-				-					-				119				129
Other		-				-					-				907				1,010
Total Noninterest Expense	$	-			$	-				$	-			$	3,641			$	5,181
(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	September 30,				June 30,					March 31,				December 31,				September 30,
(In thousands, except percentage data)		2024				2024					2023				2023				2023
Final funded loans guaranteed portion sold, SBA	$	10,880			$	7,515				$	15,144			$	14,098			$	8,431
Gross gain on sales of loans, SBA	$	1,029			$	811				$	1,443			$	1,303			$	809
Weighted average gross gain on sales of loans, SBA		9.46	%			10.79	%				9.53	%			9.24	%			9.60	%
Net gain on sales of loans, SBA (5)	$	647			$	581				$	951			$	834			$	538
Weighted average net gain on sales of loans, SBA		5.95	%			7.73	%				6.28	%			5.92	%			6.38	%
(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	September 30,				June 30,					March 31,				December 31,				September 30,
(In thousands)		2024				2024					2023				2023				2023
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	16,841			$	26,100				$	24,587			$	20,350			$	21,631
Loans		1,988,997				1,943,716					1,914,609				1,857,654				1,796,749
Investment securities - taxable		99,834				101,350					102,699				103,728				105,393
Investment securities - nontaxable		158,917				157,991					157,960				159,907				160,829
FRB and FHLB stock		24,986				24,986					24,986				24,968				24,939
Total interest-earning assets	$	2,289,575			$	2,254,143				$	2,224,841			$	2,166,607			$	2,109,541
Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	209			$	324				$	261			$	249			$	266
Loans		29,450				28,155					27,133				26,155				25,214
Investment securities - taxable		910				918					923				942				969
Investment securities - nontaxable		1,685				1,665					1,662				1,687				1,695
FRB and FHLB stock		471				519					499				74				428
Total interest income (tax equivalent basis)	$	32,725			$	31,581				$	30,478			$	29,107			$	28,572
Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		4.96	%			4.97	%				4.25	%			4.89	%			4.92	%
Loans		5.92	%			5.79	%				5.67	%			5.63	%			5.61	%
Investment securities - taxable		3.65	%			3.62	%				3.59	%			3.63	%			3.68	%
Investment securities - nontaxable		4.24	%			4.22	%				4.21	%			4.22	%			4.22	%
FRB and FHLB stock		7.54	%			8.31	%				7.99	%			1.19	%			6.86	%
Total interest-earning assets		5.72	%			5.60	%				5.48	%			5.37	%			5.42	%
Interest-bearing liabilities
Interest-bearing deposits	$	1,563,258			$	1,572,871				$	1,549,012			$	1,389,384			$	1,385,994
Fed funds purchased		-				-					-				-				76
Federal Home Loan Bank borrowings		378,956				351,227					333,275				440,786				353,890
Subordinated debt and other borrowings		48,576				48,537					48,497				48,458				48,406
Total interest-bearing liabilities	$	1,990,790			$	1,972,635				$	1,930,784			$	1,878,628			$	1,788,366
Interest expense:
Interest-bearing deposits	$	12,825			$	12,740				$	12,546			$	9,989			$	9,457
Fed funds purchased		-				-					-				-				1
Federal Home Loan Bank borrowings		3,521				3,021					2,298				3,769				2,459
Subordinated debt and other borrowings		800				799					833				784				684
Total interest expense	$	17,146			$	16,560				$	15,677			$	14,542			$	12,601
Weighted average cost (annualized):
Interest-bearing deposits		3.28	%			3.24	%				3.24	%			2.88	%			2.73	%
Fed funds purchased		0.00	%			0.00	%				0.00	%			0.00	%			5.26	%
Federal Home Loan Bank borrowings		3.72	%			3.44	%				2.76	%			3.42	%			2.78	%
Subordinated debt and other borrowings		6.59	%			6.58	%				6.87	%			6.47	%			5.65	%
Total interest-bearing liabilities		3.45	%			3.36	%				3.25	%			3.10	%			2.82	%
Net interest income (taxable equivalent basis)	$	15,579			$	15,021				$	14,801			$	14,565			$	15,971
Less: taxable equivalent adjustment		(502	)			(487	)				(463	)			(452	)			(435	)
Net interest income	$	15,077			$	14,534				$	14,338			$	14,113			$	15,536
Interest rate spread (tax equivalent basis, annualized)		2.27	%			2.24	%				2.23	%			2.27	%			2.60	%
Net interest margin (tax equivalent basis, annualized)		2.72	%			2.67	%				2.66	%			2.69	%			3.03	%

FAQ

What was First Savings Financial Group's (FSFG) net income for fiscal year 2024?

First Savings Financial Group reported net income of $13.6 million, or $1.98 per diluted share, for fiscal year 2024.

How did FSFG's net interest margin change in fiscal year 2024?

FSFG's tax equivalent net interest margin decreased to 2.68% in fiscal year 2024 from 3.10% in the prior year.

What was FSFG's total asset value as of September 30, 2024?

FSFG's total assets were $2.45 billion as of September 30, 2024, an increase of $161.5 million from the previous year.

How did FSFG's nonperforming loans change in fiscal year 2024?

Nonperforming loans increased by $3.0 million from $13.9 million to $16.9 million during fiscal year 2024.