First Savings Financial Group, Inc. Reports Financial Results For the Fiscal Year Ended September 30, 2020
First Savings Financial Group (NASDAQ: FSFG) reported a substantial net income increase to $33.4 million ($14.04/share) for the year ending September 30, 2020, up 106% from $16.2 million ($6.82/share) in 2019. The company cited record earnings and asset growth despite challenges posed by COVID-19. Total assets rose by $542 million to $1.76 billion, driven by strong loan growth, especially in commercial and SBA portfolios. However, nonperforming loans increased to $13.6 million, and the company recognized a higher loan loss provision of $8 million amid economic uncertainties.
- Net income increased 106% to $33.4 million for FY 2020.
- Total assets rose by $542 million to $1.76 billion.
- Mortgage banking income surged by $84.8 million.
- Nonperforming loans increased by $8.4 million to $13.6 million.
- Loan loss provision rose significantly to $8 million from $1.5 million.
JEFFERSONVILLE, Ind., Oct. 30, 2020 (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
Commenting on the Company’s performance, Larry W. Myers, President and CEO stated: “We are very pleased with another outstanding quarter and fiscal year, including record earnings and asset growth for the year, resiliency of asset quality during a challenging environment, stability of the net interest margin, significant increase in stockholders’ equity, and substantial increase in shareholder value. The core bank and ancillary business lines continue to perform exceptionally well and generate meaningful returns for our shareholders. I continue to have confidence that the Company is well-positioned to thrive during what is otherwise a very challenging banking environment and I continue to be very proud of our Company and staff.”
COVID-19 Response
The COVID-19 pandemic has placed, and continues to place, significant health, economic and other major hardships throughout the communities we serve, the United States and the entire world. The Company has implemented a number of procedures in response to the pandemic to support the safety and well-being of our customers, employees, and communities:
- Following the guidelines of the Center for Disease Control and local governments, we have updated our branch operating procedures. While our branches have remained open, the lobbies were temporarily closed and transactions were being conducted through drive-up windows or by appointment. Our branches have returned to pre-pandemic service levels, but have implemented safety precautions, including use of personal protective equipment (“PPE”) (where and when prudent), enhanced daily cleaning and instructions to maintain appropriate social distancing. We also actively encourage customers to utilize PPE and alternative banking channels, such as our online and mobile banking platforms. Our customer service and retail departments remain fully staffed and available to assist customers remotely.
- Our corporate and operations offices have predominately returned to pre-pandemic schedules and processes, but we have enhanced daily cleaning and instructed employees to maintain appropriate social distancing. Our employees maintain the ability to work remotely, both safely and efficiently using technology, in the event that is required or necessary.
- We continue to assist customers experiencing COVID-19 related hardships by approving payment extensions or loan forbearance agreements, and by waiving or refunding certain fees. During the initial onset of COVID-19, we proactively contacted all commercial borrowers and offered uniform payment extensions or loan forbearance agreements, while requests from consumer borrowers were reviewed and approved a on case-by-case basis. Beginning on March 18, 2020 and through October 23, 2020, we had approved 199 payment extensions or loan forbearance agreements on balances of approximately
$86.2 million , of which$77.7 million related to commercial real estate loans,$7.0 million related to residential real estate and consumer loans, and$1.5 million related to Small Business Administration (“SBA”) lending relationships. These payment extensions or loan forbearance agreements were generally for periods of three months and included deferment of both principal and interest. As of October 23, 2020, we had 14 loans with payment extensions or loan forbearance agreements on balances of approximately$10.9 million that were still in effect and set to expire between November 25, 2020 and April 4, 2021. Included in those 14 agreements in effect as of October 23, 2020, 10 were for second deferral periods ranging from three to six months. Of the 10 agreements in the second deferral period, 6 were commercial business and commercial real estate loans, and 4 were residential mortgage loans. Following the expiration of the initial payment extensions or loan forbearance agreements, we will entertain requests for extended periods on a case-by-case basis, which will generally include deferment of only the principal portion of payments (but both principal and interest for hotel loans) for a period of up to three months.
- As a result of the passage of the CARES Act, the SBA will make six months of principal and interest payments for loans of existing SBA clients that were in “regular servicing status” (not delinquent) at March 27, 2020 and for SBA loans of new clients originated between March 27, 2020 and September 27, 2020. The aforementioned
$1.5 million of SBA lending relationships that were provided payment extensions or forbearance by the Company will also receive the six months of SBA-made payments once the extension or forbearance periods have expired. In addition, the majority of the Company’s SBA clients applied for participation in the SBA’s Paycheck Protection Program (“PPP”).
- We are actively participating in the PPP and had
$180.6 million of outstanding PPP loan balances as of September 30, 2020. At September 30, 2020, we had approximately$3.2 million of net deferred loan fees related to PPP loans that will be recognized over the life of the loans and as borrowers are granted forgiveness.
- The leisure and hospitality industries carry a higher degree of credit risk due to the COVID-19 pandemic. Based on our evaluation of the allowance for loan losses at September 30, 2020, management believes sufficient reserves are in place to cover estimated losses at that date. However, as the pandemic continues, additional losses could be recognized.
- The Company had outstanding loan balances to restaurants totaling
$167.3 million as of September 30, 2020, of which$75.4 million is fully guaranteed by the SBA, including$74.5 million of PPP loans, and of which$82.5 million represents commercial real estate loans where the collateral property is leased to national-brand, investment-grade tenants.
- The Company had outstanding loan balances to hotels totaling
$17.4 million as of September 30, 2020, of which$3.7 million is fully guaranteed by the SBA, including$606,000 of PPP loans.
Management continues to closely monitor the pandemic and may take additional action to respond to the pandemic’s effects on the Company’s business as the situation continues to evolve. We cannot determine or estimate the impact on our business at this time because the length and severity of the economic downturn is not yet known. We are confident that we are well-positioned to withstand any challenges that may be presented, and we are committed to continuing to serve our customers, employees and communities.
Results of Operations for the Fiscal Years Ended September 30, 2020 and 2019
Net interest income increased
The Company recognized
Noninterest income increased
Noninterest expense increased
The Company recognized income tax expense of
Comparison of Results of Operations for the Three Months Ended September 30, 2020 and 2019
The Company reported net income of
Net interest income increased
The Company recognized
Noninterest income increased
Noninterest expense increased
The Company recognized income tax expense of
Comparison of Financial Condition at September 30, 2020 and September 30, 2019
Total assets increased
Common stockholders’ equity increased
First Savings Bank has fifteen offices in the Indiana communities of Clarksville, Jeffersonville, Charlestown, Sellersburg, New Albany, Georgetown, Corydon, Lanesville, Elizabeth, English, Marengo, Salem, Odon and Montgomery. Access to First Savings Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank's website at www.fsbbank.net.
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, including the duration, extent and severity of the COVID-19 pandemic, including its effect on our customers, service providers and on the economy and financial markets in general, changes in market interest rates and 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 | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| OPERATING DATA: | 2020 | 2019 | 2020 | 2019 | |||||||||||
| (In thousands, except share and per share data) | |||||||||||||||
| Total interest income | $ | 17,125 | $ | 13,829 | $ | 59,929 | $ | 50,995 | |||||||
| Total interest expense | 2,337 | 3,069 | 10,538 | 10,906 | |||||||||||
| Net interest income | 14,788 | 10,760 | 49,391 | 40,089 | |||||||||||
| Provision for loan losses | 2,772 | 471 | 7,962 | 1,463 | |||||||||||
| Net interest income after provision for loan losses | 12,016 | 10,289 | 41,429 |
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FAQ
What was First Savings Financial Group's net income for the fiscal year 2020?
First Savings Financial Group reported a net income of $33.4 million for the fiscal year 2020.
What significant changes occurred in First Savings Financial Group's assets?
Total assets increased by $542 million to $1.76 billion as of September 30, 2020.
How much did the mortgage banking income grow for First Savings Financial Group in 2020?
Mortgage banking income increased by $84.8 million for the fiscal year 2020.
What is the status of nonperforming loans at First Savings Financial Group as of FY 2020?
Nonperforming loans increased to $13.6 million for the year ended September 30, 2020.
What was the loan loss provision recognized by First Savings Financial Group in 2020?
The company recognized a loan loss provision of $8 million for the fiscal year 2020.
First Savings Financial Group, Inc
NASDAQ:FSFGFSFG RankingsFSFG Latest NewsFSFG Stock Data
112.40M
5.52M
19.02%
34.26%
0.18%
Banks - Regional
Savings Institution, Federally Chartered
United States of America
JEFFERSONVILLE
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