JEFFERSONVILLE, Ind., July 25, 2024 (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 $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