First Savings Financial Group Reports Increased Net Income of $6.2 Million for Q3 2025

First Savings Financial Group reports increased net income and improved net interest margin for Q2 2025 compared to the previous year.

Quiver AI Summary

First Savings Financial Group, Inc. announced a net income of $6.2 million, or $0.88 per diluted share, for the quarter ended June 30, 2025, up from $4.1 million, or $0.60 per diluted share, for the same quarter in 2024. Excluding nonrecurring items, net income was $5.7 million. CEO Larry W. Myers highlighted improvements in net interest margins, deposit growth, and efficiency, along with continued success in the SBA Lending segment. The company experienced a significant rise in net interest income, increasing by 15.1% to $16.7 million, with a net interest margin of 2.99%. Noninterest income also rose, driven primarily by gains from sales of home equity lines of credit and SBA loans. Overall, for the nine months ending June 30, 2025, net income was $17.9 million, significantly higher than the prior year. The company remains optimistic about continued growth and profitability while maintaining strong asset quality.

Potential Positives

• Net income increased by 51.2% year-over-year for the quarter, rising from $4.1 million to $6.2 million.
• Significant growth in net interest income of 15.1% for the quarter, indicating strong performance in interest-earning activities.
• Improvement in net interest margin by 32 basis points, suggesting enhanced efficiency in managing interest income and expenses.
• Nonperforming loans decreased by $1.7 million year-over-year, reflecting improvements in asset quality.

Potential Negatives

• Total assets decreased by $33.7 million and total liabilities decreased by $40.4 million, indicating potential concerns about growth and financial health.
• Deposits decreased significantly, particularly brokered deposits, which fell by $229.1 million, raising concerns about liquidity and customer confidence.
• Net charge-offs increased from $105,000 to $309,000 year-over-year, which could indicate worsening credit quality or increased risk among borrowers.

FAQ

What was First Savings Financial Group's net income for Q3 2025?

First Savings Financial Group reported a net income of $6.2 million for the quarter ended June 30, 2025.

How did net interest income perform in 2025?

Net interest income increased by $2.2 million, or 15.1%, totaling $16.7 million for Q3 2025.

What are the expectations for SBA Lending in fiscal 2025?

The SBA Lending segment is expected to continue profitability with a strong pipeline for the fourth fiscal quarter.

How has First Savings Financial Group's stock performed?

The common shares of First Savings Financial Group trade on NASDAQ under the symbol "FSFG."

What were the key financial improvements reported?

Key improvements included growth in deposits, reduced expenses, and an efficient ratio improvement to 64.45%.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$FSFG Hedge Fund Activity

We have seen 20 institutional investors add shares of $FSFG stock to their portfolio, and 19 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• MILLENNIUM MANAGEMENT LLC added 52,166 shares (+133.2%) to their portfolio in Q1 2025, for an estimated $1,343,796
• QUBE RESEARCH & TECHNOLOGIES LTD removed 16,239 shares (-58.7%) from their portfolio in Q1 2025, for an estimated $418,316
• SUSQUEHANNA INTERNATIONAL GROUP, LLP added 14,229 shares (+19.9%) to their portfolio in Q1 2025, for an estimated $366,539
• 683 CAPITAL MANAGEMENT, LLC removed 12,760 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $328,697
• HRT FINANCIAL LP added 11,130 shares (+inf%) to their portfolio in Q1 2025, for an estimated $286,708
• BLACKROCK, INC. added 10,556 shares (+15.9%) to their portfolio in Q1 2025, for an estimated $271,922
• ALLIANCEBERNSTEIN L.P. added 6,116 shares (+2.9%) to their portfolio in Q1 2025, for an estimated $157,548

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

$FSFG Analyst Ratings

Wall Street analysts have issued reports on $FSFG in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.

Here are some recent analyst ratings:

• Hovde Group issued a "Outperform" rating on 05/06/2025
• Piper Sandler issued a "Overweight" rating on 04/29/2025
• Maxim Group issued a "Buy" rating on 04/28/2025

To track analyst ratings and price targets for $FSFG, check out Quiver Quantitative's $FSFG forecast page.

$FSFG Price Targets

Multiple analysts have issued price targets for $FSFG recently. We have seen 2 analysts offer price targets for $FSFG in the last 6 months, with a median target of $31.5.

Here are some recent targets:

• Nathan Race from Piper Sandler set a target price of $32.0 on 04/29/2025
• Michael Diana from Maxim Group set a target price of $31.0 on 04/28/2025

Full Release

JEFFERSONVILLE, Ind., July 24, 2025 (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 $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)

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and net income per diluted share of $0.81 (non-GAAP measure)

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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)

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and net income per diluted share of $2.16 (non-GAAP measure)

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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)

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, or $2.05 per diluted share (non-GAAP measure)

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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, CPA


Chief Financial Officer


812-283-0724