First Savings Financial Group Reports $6.2 Million Net Income for December 2024

First Savings Financial Group, Inc. reported a significant increase in its financial performance for the three months ended December 31, 2024, with net income rising to $6.2 million, or $0.89 per diluted share, compared to $920,000, or $0.13 per diluted share, for the same period in 2023. This represents a substantial year-over-year increase in profitability, driven by a 9.6% rise in net interest income, which reached $15.5 million, up from $14.1 million in the prior year. The increase in net interest income was attributed to a higher average balance of interest-earning assets, which grew by $152.5 million, and an increase in the average yield on these assets from 5.37% to 5.68%.

The company experienced notable changes in its balance sheet compared to the previous fiscal period. Total assets decreased from $2.45 billion at September 30, 2024, to $2.39 billion at December 31, 2024. This decline was primarily due to a $79.3 million reduction in net loans, which fell to $1.88 billion, largely as a result of a bulk sale of residential real estate home equity line of credit loans. Additionally, total deposits decreased by $48.1 million, driven by reductions in brokered and noninterest-bearing deposits, although there were increases in demand deposit accounts and retail time deposits.

Strategically, First Savings Financial Group has made significant operational adjustments, including the wind-down of its national mortgage banking operations, which ceased during the previous fiscal year. This decision has led to a reduction in noninterest expenses, which fell to $14.9 million from $16.0 million year-over-year. The company also reported a $2.5 million net gain on the sale of loans during the quarter, reflecting its ongoing focus on its core banking and SBA lending segments. The company’s SBA lending segment generated $711,000 in net gains from loan sales, contributing to the overall increase in noninterest income, which rose to $6.1 million from $2.8 million in the prior year.

In terms of operational metrics, First Savings Financial Group reported a decrease in total loans held for sale, which fell to $24.3 million, primarily due to a decline in SBA loans. The company’s total deposits at the end of December 2024 were $1.83 billion, with a notable increase in demand deposit accounts. The company’s stockholders’ equity also saw a slight decline, decreasing to $176.0 million, attributed to an increase in accumulated other comprehensive loss.

Looking ahead, First Savings Financial Group remains focused on maintaining its capital adequacy, with the Bank categorized as "well-capitalized" under regulatory guidelines. The company anticipates continued challenges from market conditions, including interest rate fluctuations, but is committed to managing its liquidity and capital resources effectively. The management's outlook suggests a cautious approach as they navigate the evolving financial landscape while aiming to enhance profitability through strategic lending and operational efficiencies.