JEFFERSONVILLE, Ind., April 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 $4.9 million, or $0.72 per diluted share, for the quarter ended March 31, 2024 compared to net income of $3.7 million, or $0.54 per diluted share, for the quarter ended March 31, 2023. Excluding nonrecurring items, the Company reported net income of $3.6 million (non-GAAP measure)(1) and net income per diluted share of $0.52 (non-GAAP measure)(1) for the quarter ended March 31, 2024. The core banking segment reported net income of $4.5 million, or $0.66 per diluted share for the quarter ended March 31, 2024. Excluding nonrecurring items, the core banking segment reported net income of $3.6 million, or $0.53 per diluted share for the quarter ended March 31, 2024 (non-GAAP measure)(1). Commenting on the Company's performance, Larry W. Myers, President and CEO, stated, "We continue to focus on reducing balance sheet and operating inefficiencies; 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 March 31, 2024 and 2023 Net interest income decreased $574,000, or 3.9%, to $14.3 million for the three months ended March 31, 2024 as compared to the same period 2023. The decrease in net interest income was due to a $5.8 million increase in interest expense, partially offset by a $5.2 million increase in interest income. Interest income increased due to an increase in the average balance of interest-earning assets of $199.9 million, from $2.02 billion for 2023 to $2.22 billion for 2024, and an increase in the weighted-average tax-equivalent yield, from 5.01% for 2023 to 5.48% for 2024. The increase in the average balance of interest-earning assets was due primarily to a $293.5 million increase in the average balance of loans, partially offset by a decrease in the average balance of investment securities of $92.2 million. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $254.8 million, from $1.68 billion for 2023 to $1.93 billion for 2024, and an increase in the average cost of interest-bearing liabilities, from 2.36% for 2023 to 3.25% for 2024. The increase in the average cost of interest-bearing liabilities for 2024 was due primarily to higher rates for borrowings and brokered deposits as a result of increased market interest rates due to competition and higher U.S. Treasury rates, and migration of deposits from lower-yielding transaction and savings accounts to higher-yielding money market accounts and certificates of deposits. The Company recognized a provision for credit losses for loans of $454,000 and a provision for credit losses for securities of $23,000 for the three months ended March 31, 2024, compared to a provision for loan losses of $372,000 for the same period in 2023. The Company recognized net charge-offs of $110,000 for the three months ended March 31, 2024, of which $42,000 was related to unguaranteed portions of SBA loans, compared to net recoveries of $6,000 in 2023. Noninterest income decreased $3.8 million for the three months ended March 31, 2024 as compared to the same period in 2023. The decrease was due primarily to a $4.1 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 $6.2 million for the three months ended March 31, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense of $2.8 million and other operating expense of $2.4 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 decrease in loss contingency for SBA-guaranteed loans of $656,000 in 2024 compared to an increase of $490,000 in 2023, and an adjustment to the valuation allowance related to sale of residential mortgage servicing rights of $247,000 in 2024 with no corresponding amounts in 2023. The Company recognized income tax expense of $866,000 for the three months ended March 31, 2024 compared to $333,000 for the same period in 2023. The effective tax rate for 2024 was 14.9%, which was an increase from the effective tax rate of 8.2% in 2023. The increase was due to higher pre-tax income in 2024 as compared to 2023. Results of Operations for the Six Months Ended March 31, 2024 and 2023 The Company reported net income of $5.8 million, or $0.85 per diluted share, for the six months ended March 31, 2024 compared to net income of $6.6 million, or $0.95 per diluted share, for the six months ended March 31, 2023. Excluding nonrecurring items, the Company reported net income of $4.5 million (non-GAAP measure)(1) and net income per diluted share of $0.65 (non-GAAP measure)(1) for the six months ended March 31, 2024. The core banking segment reported net income of $8.6 million, or $1.25 per diluted share for the six months ended March 31, 2024. Excluding nonrecurring items, the core banking segment reported net income of $7.7 million, or $1.12 per diluted share for the six months ended March 31, 2024 (non-GAAP measure)(1). Net interest income decreased $2.7 million, or 8.7%, to $28.5 million for the six months ended March 31, 2024 as compared to the same period 2023. The decrease in net interest income was due to a $13.1 million increase in interest expense, partially offset by a $10.4 million increase in interest income. Interest income increased due to an increase in the average balance of interest-earning assets of $195.3 million, from $2.00 billion for 2023 to $2.20 billion for 2024, and an increase in the weighted-average tax-equivalent yield, from 4.94% for 2023 to 5.43% for 2024. The increase in the average balance of interest-earning assets was due primarily to a $284.0 million increase in the average balance of loans, partially offset by a decrease in the average balance of investment securities of $91.0 million. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $260.5 million, from $1.64 billion for 2023 to $1.90 billion for 2024, and an increase in the average cost of interest-bearing liabilities, from 2.08% for 2023 to 3.17% for 2024. The increase in the average cost of interest-bearing liabilities for 2024 was due primarily to higher rates for borrowings and brokered deposits as a result of increased market interest rates due to competition and higher U.S. Treasury rates, and migration of deposits from lower-yielding transaction and savings accounts to higher-yielding money market accounts and certificates of deposits. The Company recognized a provision for credit losses for loans of $866,000 and a provision for credit losses for securities of $23,000 for the six months ended March 31, 2024, compared to a provision for loan losses of $1.4 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 $1.7 million from $13.9 million at September 30, 2023 to $15.6 million at March 31, 2024. The Company recognized net charge-offs of $119,000 for the six months ended March 31, 2024, of which $22,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $258,000 in 2023, of which $238,000 was related to unguaranteed portions of SBA loans. Noninterest income decreased $6.2 million for the six months ended March 31, 2024 as compared to the same period in 2023. The decrease was due primarily to a $6.5 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 $7.7 million for the six months ended March 31, 2024 as compared to the same period in 2023. The decrease was due primarily to decreases in compensation and benefits expense of $3.8 million and other operating expense of $3.4 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 decrease in loss contingency for SBA-guaranteed loans of $721,000 in 2024 compared to an increase of $490,000 in 2023, and a decrease in loss contingency for restitution to mortgage borrowers of $17,000 in 2024 compared to an increase of $609,000 in 2023. The Company recognized income tax expense of $390,000 for the six months ended March 31, 2024 compared to tax expense of $416,000 for the same period in 2023. The effective tax rate for 2024 was 6.3%, which was an increase from the effective tax rate of 5.9% in 2023. Comparison of Financial Condition at March 31, 2024 and September 30, 2023 Total assets increased $76.1 million, from $2.29 billion at September 30, 2023 to $2.36 billion at March 31, 2024. Net loans held for investment increased $112.2 million during the six months ended March 31, 2024 due primarily to growth in residential construction and mortgage loans. Residential mortgage loan servicing rights decreased $59.8 million during the six months ended March 31, 2024, due to the sale of the entire residential mortgage loan servicing rights portfolio during the period. Total liabilities increased $62.1 million due primarily to increases in total deposits of $105.7 million, partially offset by a decrease in FHLB borrowings of $48.2 million. As of March 31, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 27.1% of total deposits and 13.1% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund. Common stockholders' equity increased $14.1 million, from $151.0 million at September 30, 2023 to $165.1 million at March 31, 2024, due primarily to a $12.4 million decrease in accumulated other comprehensive loss and an increase in retained net income of $1.3 million. The decrease in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the six months ended March 31, 2024, which resulted in an increase in the fair value of securities available for sale. At March 31, 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   Six Months Ended     OPERATING DATA: March 31,   March 31,     (In thousands, except share and per share data)   2024       2023       2024       2023                           Total interest income $ 30,016     $ 24,811     $ 58,671     $ 48,294       Total interest expense   15,678       9,899       30,220       17,121                           Net interest income   14,338       14,912       28,451       31,173                           Provision for credit losses - loans   454       372       866       1,356       Provision for credit losses - securities   23       -       23       -                           Net interest income after provision for credit losses   13,861       14,540       27,562       29,817                           Total noninterest income   3,710       7,516       6,492       12,704       Total noninterest expense   11,778       17,999       27,817       35,510                           Income before income taxes   5,793       4,057       6,237       7,011       Income tax expense   866       333       390       416                           Net income $ 4,927     $ 3,724     $ 5,847     $ 6,595                           Net income per share, basic $ 0.72     $ 0.54     $ 0.86     $ 0.96       Weighted average shares outstanding, basic   6,832,130       6,842,897       6,828,017       6,879,805                           Net income per share, diluted $ 0.72     $ 0.54     $ 0.85     $ 0.95       Weighted average shares outstanding, diluted   6,859,611       6,881,496       6,849,928       6,926,277                                               Performance ratios (annualized)                   Return on average assets   0.92 %     0.68 %     0.58 %     0.61 %     Return on average equity   13.06 %     9.15 %     8.48 %     8.36 %     Return on average common stockholders' equity   13.06 %     9.15 %     8.48 %     8.36 %     Net interest margin (tax equivalent basis)   2.66 %     3.06 %     2.68 %     3.23 %     Efficiency ratio   65.26 %     80.25 %     79.61 %     80.93 %                                                       QTD       FYTD FINANCIAL CONDITION DATA: March 31,   December 31,   Increase   September 30,   Increase (In thousands, except per share data)   2024       2023     (Decrease)     2023     (Decrease)                     Total assets $ 2,364,983     $ 2,308,092     $ 56,891     $ 2,288,854     $ 76,129   Cash and cash equivalents   62,969       33,366       29,603       30,845       32,124   Investment securities   240,142       246,801       (6,659 )     229,039       11,103   Loans held for sale   19,108       22,866       (3,758 )     45,855       (26,747 ) Gross loans   1,901,850       1,860,742       41,108       1,787,143       114,707   Allowance for credit losses (1)   19,392       18,789       603       16,900       2,492   Interest earning assets   2,214,039       2,152,941       61,098       2,083,397       130,642   Goodwill   9,848       9,848       -       9,848       -   Core deposit intangibles   479       520       (41 )     561       (82 ) Loan servicing rights   3,028       3,711       (683 )     62,819       (59,791 ) Noninterest-bearing deposits   196,239       202,769       (6,530 )     242,237       (45,998 ) Interest-bearing deposits (customer)   1,043,032       978,182       64,850       1,001,238       41,794   Interest-bearing deposits (brokered)   548,175       502,895       45,280       438,319       109,856   Federal Home Loan Bank borrowings   315,000       356,699       (41,699 )     363,183       (48,183 ) Subordinated debt and other borrowings   48,523       48,484       39       48,444       79   Total liabilities   2,199,927       2,143,569       56,358       2,137,873       62,054   Accumulated other comprehensive loss   (17,144 )     (13,606 )     (3,538 )     (29,587 )     12,443   Stockholders' equity   165,056       164,523       533       150,981       14,075                       Book value per share $ 23.98     $ 23.90       0.08     $ 21.99     $ 1.99   Tangible book value per share - Non-GAAP (2)   22.48       22.40       0.08       20.47       2.01                       Non-performing assets:                   Nonaccrual loans - SBA guaranteed $ 5,053     $ 5,066     $ (13 )   $ 5,091     $ (38 ) Nonaccrual loans   10,585       10,442       143       8,857       1,728   Total nonaccrual loans $ 15,638     $ 15,508     $ 130     $ 13,948     $ 1,690   Accruing loans past due 90 days   -       -       -       -       -   Total non-performing loans   15,638       15,508       130       13,948       1,690   Foreclosed real estate   444       444       -       474       (30 ) Troubled debt restructurings classified as performing loans   -       -       -       1,266       (1,266 ) Total non-performing assets $ 16,082     $ 15,952     $ 130     $ 15,688     $ 394                       Asset quality ratios:                   Allowance for credit losses as a percent of total gross loans   1.02 %     1.01 %     0.01 %     0.95 %     0.07 % Allowance for credit losses as a percent of nonperforming loans   124.01 %     121.16 %     2.85 %     121.16 %     2.84 % Nonperforming loans as a percent of total gross loans   0.82 %     0.83 %     (0.01 %)     0.78 %     0.04 % Nonperforming assets as a percent of total assets   0.68 %     0.69 %     (0.01 %)     0.69 %     (0.01 %)                     (1) The Company adopted ASU 2016-13 Topic 326 on October 1, 2023. Allowance was determined using expected loss methodology (CECL) as of 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     Net Income March 31,   March 31,     (In thousands)   2024       2023       2024       2023                           Net income attributable to the Company (non-GAAP) $ 3,561     $ 3,724     $ 4,481     $ 6,595       Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect   492       -       492       -       Plus: Adjustment to MSR valuation allowance related to sale, net of tax effect   583       -       583       -       Plus: Gain on sale of premises, net of tax effect   90       -       90       -       Plus: Adjustment to previous data processing contract termination accrual, net of tax effect   117       -       117       -       Plus: Distribution from equity investment, net of tax   85       -       85       -       Net income attributable to the Company (GAAP) $ 4,927     $ 3,724     $ 5,847     $ 6,595                                                 Three Months Ended   Fiscal Year Ended     Net Income per Share, Diluted March 31,   March 31,         2024       2023       2024       2023                           Net income per share, diluted (non-GAAP) $ 0.52     $ 0.54     $ 0.65     $ 0.95       Plus: Decrease in loss contingency for SBA-guaranteed loans   0.07       -       0.07       -       Plus: Adjustment to MSR valuation allowance related to sale   0.08       -       0.08       -       Plus: Gain on sale of premises   0.01       -       0.01       -       Plus: Adjustment to previous data processing contract termination accrual   0.02       -       0.02       -       Plus: Distribution from equity investment   0.02       -       0.02       -       Net income per share, diluted (GAAP) $ 0.72     $ 0.54     $ 0.85     $ 0.95                                                 Three Months Ended   Fiscal Year Ended     Efficiency Ratio March 31,   March 31,     (In thousands)   2024       2023       2024       2023                           Net interest income (GAAP) $ 14,338     $ 14,912     $ 28,451     $ 31,173                           Noninterest income (GAAP)   3,710       7,516       6,492       12,704                           Noninterest expense (GAAP)   11,778       17,999       27,817       35,510                           Efficiency ratio (GAAP)   65.26 %     80.25 %     79.61 %     80.93 %                         Noninterest income (GAAP)   3,710       7,516       6,492       12,704       Less: Adjustment to MSR valuation allowance related to sale   (530 )     -       (530 )     -       Less: Gain on sale of premises   (120 )     -       (120 )     -       Less: Distribution from equity investment   (113 )     -       (113 )     -       Noninterest income (Non-GAAP)   2,947       7,516       5,729       12,704                           Noninterest expense (GAAP)   11,778       17,999       27,817       35,510       Plus: Adjustment to MSR valuation allowance related to sale   247       -       247       -       Plus: Decrease in loss contingency for SBA-guaranteed loans   656       -       656       -       Plus: Adjustment to previous data processing contract termination accrual   156