First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2025
JEFFERSONVILLE, Ind., July 24, 2025 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ:FSFG) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $6.2 million, or $0.88 per diluted share, for the quarter ended June 30, 2025, compared to net income of $4.1 million, or $0.60 per diluted share, for the quarter ended June 30, 2024. Excluding nonrecurring items, the Company reported net income of $5.7 million (non-GAAP measure)(1) and net income per diluted share of $0.81 (non-GAAP measure)(1) for the quarter ended June 30, 2025 compared to $3.5 million, or $0.52 per diluted share for the quarter ended June 30, 2024.
Commenting on the Company's performance, Larry W. Myers, President and CEO, stated "We are pleased with the third fiscal quarter performance, including the continued improvement in the net interest margin, which has increased 32 basis points from June of 2024 to June of 2025, solid growth in deposits, expense containment, and meaningful efficiency ratio improvement. The SBA Lending segment posted its second consecutive profitable quarter, which included a solid level of loans originations and sales. Additionally, the SBA Lending pipeline for the fourth fiscal quarter remains robust. We are optimistic regarding the remainder of fiscal 2025 as we anticipate further expansion of the net interest margin, continued profitability from the SBA Lending segment, additional sales of home equity lines of credit, and stable and strong asset quality. We will continue our focus on customer deposit growth, select loan growth opportunities, preservation of asset quality, and prudent capital and liquidity management. We will also continue to evaluate options and strategies that we believe will maximize 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, 2025 and 2024
Net interest income increased $2.2 million, or 15.1%, to $16.7 million for the three months ended June 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended June 30, 2025 was 2.99% as compared to 2.67% for the same period in 2024. The increase in net interest income was due to an increase of $871,000 in interest income and a decrease of $1.3 million in interest expense. 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 and unfunded lending commitments of $347,000 and $77,000, respectively, and a reversal of provision for credit losses on securities of $1,000 for the three months ended June 30, 2025, compared to a provision for credit losses for loans, unfunded lending commitments and securities of $501,000, $158,000 and $84,000, respectively, for the same period in 2024. The Company recognized $309,000 in net charge-offs recognized during the three months ended June 30, 2025, of which $216,000 was related to unguaranteed portions of SBA loans. During the three months ended June 30, 2024, the Company recognized net charge-offs of $105,000, of which $49,000 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, decreased $1.7 million from $16.9 million at September 30, 2024 to $15.2 million at June 30, 2025.
Noninterest income increased $1.3 million for the three months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in other income and net gain on sales of SBA loans of $565,000 and $351,000, respectively, and net gain on sales of home equity lines of credit ("HELOC") of $617,000, partially offset by a $404,000 decrease in net unrealized gains on equity securities. The increase in other income was primarily due to a $487,000 gain recognized in connection with a lease termination. The was no gain on sales of HELOC in the 2024 period as the sale of this product commenced in fiscal 2025.
Noninterest expense increased $1.3 million for the three months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to an increase in compensation and benefits of $904,000, which was due to routine salary increases and increases in bonus and incentive accruals in 2025 related to stronger Company performance.
The Company recognized income tax expense of $963,000 for the three months ended June 30, 2025 compared to $483,000 for the same period in 2024. The increase is due primarily to higher taxable income in 2025 as compared to 2024. The effective tax rate for 2025 was 13.5% compared to 10.6% for 2024. 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 2025 and 2024 periods.
Results of Operations for the Nine Months Ended June 30, 2025 and 2024
The Company reported net income of $17.9 million, or $2.57 per diluted share, for the nine months ended June 30, 2025 compared to net income of $9.9 million, or $1.45 per diluted share, for the nine months ended June 30, 2024. Excluding nonrecurring items, the Company reported net income of $15.1 million (non-GAAP measure)(1) and net income per diluted share of $2.16 (non-GAAP measure)(1) for the nine months ended June 30, 2025 compared to net income of $9.4 million and net income per diluted share of $1.37 for the nine months ended June 30, 2024. The core banking segment reported net income of $17.2 million, or $2.46 per diluted share for the nine months ended June 30, 2025 compared to net income of $13.3 million and net income per diluted share of $1.92 for the nine months ended June 30, 2024. Excluding nonrecurring items, the core banking segment reported net income of $14.4 million (non-GAAP measure)(1), or $2.05 per diluted share (non-GAAP measure)(1) for the nine months ended June 30, 2025 compared to net income of $12.9 million and net income per diluted share of $1.89 for the nine months ended June 30, 2024.
Net interest income increased $5.2 million, or 12.1%, to $48.2 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the nine months ended June 30, 2025 was 2.89% as compared to 2.67% for the same period in 2024. The increase in net interest income was due to a $5.5 million increase in interest income, partially offset by a $279,000 increase in interest expense. 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 reversal of provision for credit losses for loans and securities of $501,000 and $8,000, respectively, and a provision for unfunded lending commitments of $246,000 for the nine months ended June 30, 2025, compared to a provision for credit losses for loans and securities of $1.7 million and $107,000, respectively, and reversal of provision for unfunded lending commitments of $159,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of HELOC during the period and a decrease in qualitative reserves. The Company recognized net charge-offs totaling $271,000 for the nine months ended June 30, 2025, of which $52,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $224,000 in 2024, of which $15,000 was related to unguaranteed portions of SBA loans.
Noninterest income increased $4.5 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to a $3.1 million net gain on sales of HELOC, a $403,000 net gain on sales of equity securities in 2025, and the aforementioned $487,000 gain recognized in connection with a lease termination in the 2025 period with no corresponding gain amounts for the 2024 period.
Noninterest expense increased $2.1 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $1.4 million and $1.1 million, respectively, partially offset by a decrease in professional fees of $412,000. The increase in compensation and benefits is primarily due to routine salary increases and increases in bonus and incentive accruals in 2025 related to stronger Company performance. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period with no corresponding amount for the 2025 period and a $405,000 accrued contingent liability associated with employee benefits recognized in the 2025 period with no corresponding amount in the 2024 period. The decrease in professional fees is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.
The Company recognized income tax expense of $2.4 million for the nine months ended June 30, 2025 compared to $873,000 for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period. The effective tax rate for 2025 was 11.8% compared to 8.1%. 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 2025 and 2024 periods.
Comparison of Financial Condition at June 30, 2025 and September 30, 2024
Total assets decreased $33.7 million, from $2.45 billion at September 30, 2024 to $2.42 billion at June 30, 2025. Net loans held for investment decreased $68.0 million during the nine months ended June 30, 2025, due primarily to $109.1 million of sales of HELOC during the nine months ended June 30, 2025, and residential mortgage loans held for sale increased $42.1 million during the same period.
Total liabilities decreased $40.4 million due primarily to a decrease in total deposits and other borrowings of $144.7 and $19.9 million, respectively, partially offset by an increase in FHLB borrowings of $133.3 million. The decrease in total deposits was due to a decrease in brokered deposits of $229.1 million, which was due primarily to proceeds from the aforementioned sales of HELOC and greater utilization of FHLB borrowings, partially offset by an increase in customer deposits of $84.4 million. The decrease in other borrowings is due to the redemption of $20.0 million of subordinated notes during the quarter ended June 30, 2023. As of June 30, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 35.0% of total deposits and 14.3% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.
Total stockholders' equity increased $6.7 million, from $177.1 million at September 30, 2024 to $183.8 million at June 30, 2025, due primarily to a $14.6 million increase in retained net income, partially offset by a $8.9 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the nine months ended June 30, 2025, which resulted in a decrease in the fair value of securities available for sale. At June 30, 2025 and September 30, 2024, 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 in the Company's periodic 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 release 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, CPAChief Financial Officer812-283-0724
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)
2025
2024
2025
2024
Total interest income
$
31,965
$
31,094
$
95,237
$
89,765
Total interest expense
15,240
16,560
47,059
46,780
Net interest income
16,725
14,534
48,178
42,985
Provision (credit) for credit losses - loans
347
501
(501
)
1,684
Provision (credit) for unfunded lending commitments
77
158
246
(159
)
Provision (credit) for credit losses - securities
(1
)
84
(8
)
107
Total provision (credit) for credit losses
423
743
(263
)
1,632
Net interest income after provision (credit) for credit losses
16,302
13,791
48,441
41,353
Total noninterest income
4,520
3,196
14,183
9,688
Total noninterest expense
13,693
12,431
42,334
40,248
Income before income taxes
7,129
4,556
20,290
10,793
Income tax expense
963
483
2,400
873
Net income
$
6,166
$
4,073
$
17,890
$
9,920
Net income per share, basic
$
0.90
$
0.60
$
2.60
$
1.45
Weighted average shares outstanding, basic
6,881,077
6,832,452
6,867,734
6,829,490
Net income per share, diluted
$
0.88
$
0.60
$
2.57
$
1.45
Weighted average shares outstanding, diluted
6,977,674
6,834,784
6,967,742
6,851,145
Performance ratios (annualized)
Return on average assets
1.02
%
0.69
%
0.99
%
0.57
%
Return on average equity
13.66
%
9.86
%
13.32
%
8.23
%
Return on average common stockholders' equity
13.66
%
9.86
%
13.32
%
8.23
%
Net interest margin (tax equivalent basis)
2.99
%
2.67
%
2.89
%
2.67
%
Efficiency ratio
64.45
%
70.11
%
67.89
%
76.41
%
QTD
FYTD
FINANCIAL CONDITION DATA:
June 30,
March 31,
Increase
September 30,
Increase
(In thousands, except per share data)
2025
2025
(Decrease)
2024
(Decrease)
Total assets
$
2,416,675
$
2,376,230
$
40,445
$
2,450,368
$
(33,693
)
Cash and cash equivalents
52,123
28,683
23,440
52,142
(19
)
Investment securities
244,284
244,084
200
249,719
(5,435
)
Loans held for sale
60,970
61,239
(269
)
25,716
35,254
Gross loans
1,916,343
1,900,660
15,683
1,985,146
(68,803
)
Allowance for credit losses
20,522
20,484
38
21,294
(772
)
Interest earning assets
2,260,099
2,219,504
40,595
2,277,512
(17,413
)
Goodwill
9,848
9,848
-
9,848
-
Core deposit intangibles
275
316
(41
)
398
(123
)
Noninterest-bearing deposits
202,649
185,252
17,397
191,528
11,121
Interest-bearing deposits (customer)
1,253,525
1,207,159
46,366
1,180,196
73,329
Interest-bearing deposits (brokered)
280,020
396,770
(116,750
)
509,157
(229,137
)
Federal Home Loan Bank borrowings
434,924
325,310
109,614
301,640
133,284
Subordinated debt and other borrowings
28,722
48,682
(19,960
)
48,603
(19,881
)
Total liabilities
2,232,853
2,197,041
35,812
2,273,253
(40,400
)
Accumulated other comprehensive loss
(20,061
)
(19,385
)
(676
)
(11,195
)
(8,866
)
Total stockholders' equity
183,822
179,189
4,633
177,115
6,707
Book value per share
$
26.35
$
25.90
0.45
$
25.72
0.63
Tangible book value per share (non-GAAP) (1)
24.90
24.43
0.47
24.23
0.67
Non-performing assets:
Nonaccrual loans - SBA guaranteed
$
2,713
$
123
$
2,590
$
5,036
$
(2,323
)
Nonaccrual loans
12,502
12,597
(95
)
11,906
596
Total nonaccrual loans
$
15,215
$
12,720
$
2,495
$
16,942
$
(1,727
)
Accruing loans past due 90 days
-
-
-
-
-
Total non-performing loans
15,215
12,720
2,495
16,942
(1,727
)
Foreclosed real estate
1,113
444
669
444
669
Total non-performing assets
$
16,328
$
13,164
$
3,164
$
17,386
$
(1,058
)
Asset quality ratios:
Allowance for credit losses as a percent of total gross loans
1.07
%
1.08
%
(0.01
%)
1.07
%
(0.00
%)
Allowance for credit losses as a percent of nonperforming loans
134.88
%
161.04
%
(26.16
%)
125.69
%
9.19
%
Nonperforming loans as a percent of total gross loans
0.79
%
0.67
%
0.12
%
0.85
%
(0.06
%)
Nonperforming assets as a percent of total assets
0.68
%
0.55
%
0.13
%
0.71
%
(0.03
%)
(1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.
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
Net Income
June 30,
June 30,
(In thousands)
2025
2024
2025
2024
Net income attributable to the Company (non-GAAP)
$
5,691
$
3,534
$
15,057
$
9,381
Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect
-
-
1,869
-
Plus: Gain on life insurance, net of tax effect
110
-
110
-
Plus: Gain on lease termination, net of tax effect
365
-
365
-
Plus: Gain on sale of equity securities, net of tax effect
-
-
302
-
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect
-
212
-
212
Plus: Gain on sale of premises and equipment, net of tax effect
-
-
186
-
Plus: Recording of Visa Class C shares, net of tax
-
327
-
327
Net income attributable to the Company (GAAP)
$
6,166
$
4,073
$
17,890
$
9,920
Net Income per Share, Diluted
Net income per share attributable to the Company, diluted (non-GAAP)
$
0.81
$
0.52
$
2.16
$
1.37
Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect
-
-
0.27
-
Plus: Gain on life insurance, net of tax effect
0.02
-
0.02
-
Plus: Gain on lease termination, net of tax effect
0.05
-
0.05
-
Plus: Gain on sale of equity securities, net of tax effect
-
-
0.04
-
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect
-
0.03
-
0.03
Plus: Gain on sale of premises and equipment, net of tax effect
-
-
0.03
-
Plus: Recording of Visa Class C shares, net of tax
-
0.05
-
0.05
Net income per share, diluted (GAAP)
$
0.88
$
0.60
$
2.57
$
1.45
Core Bank Segment Net Income
(In thousands)
Net income attributable to the Core Bank (non-GAAP)
$
5,299
$
4,176
$
14,379
$
12,947
Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect
-
-
1,869
-
Plus: Gain on life insurance, net of tax effect
110
-
110
-
Plus: Gain on lease termination, net of tax effect
365
-
365
-
Plus: Gain on sale of equity securities, net of tax effect
-
-
302
-
Plus: Gain on sale of premises and equipment, net of tax effect
-
-
186
-
Plus: Recording of Visa Class C shares, net of tax
-
327
-
327
Net income attributable to the Core Bank (GAAP)
$
5,774
$
4,503
$
17,212
$
13,274
Core Bank Segment Net Income per Share, Diluted
Core Bank net income per share, diluted (non-GAAP)
$
0.75
$
0.64
$
2.05
$
1.89
Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect
-
-
0.27
-
Plus: Gain on life insurance, net of tax effect
0.02
-
