First Savings Financial Group (FSFG) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $5.5M ($0.79 per diluted share), up from $4.9M ($0.72) in Q2 2024, driven by higher net interest income and gains on loan sales; adjusted net income was $5.3M ($0.76), up from $3.6M ($0.52) year-over-year.

• For the six months ended March 31, 2025, net income was $11.7M ($1.68 per diluted share), compared to $5.8M ($0.85) for the same period in 2024; adjusted six-month net income was $9.4M ($1.35), up from $4.5M ($0.66).

• Core banking segment contributed $11.4M ($1.64/diluted share) for six months, with adjusted core net income of $9.1M ($1.31).

• The company completed a bulk sale of $87.2M in home equity line of credit loans, impacting loan balances and noninterest income.

Financial highlights

• Net interest income rose 11.6% year-over-year to $16.0M for Q2 2025; net interest margin increased to 2.93% from 2.66%.

• Noninterest income for Q2 2025 decreased by $150K due to lower gains on mortgage servicing rights, partially offset by higher SBA loan sales.

• Noninterest expense increased $1.9M year-over-year, mainly from higher compensation and lower reversal of loss contingencies.

• For six months, net interest income rose 10.6% to $31.5M; noninterest income increased $3.2M, driven by $2.5M gain on HELOC sales and $403K gain on equity securities.

• Total assets were $2.38B at March 31, 2025, down $74.1M from September 30, 2024, mainly due to the $87.2M bulk sale of HELOCs.

Outlook and guidance

• Management expects continued focus on core banking and SBA lending, with no material changes to risk factors or critical accounting policies.

• Management anticipates further net interest margin expansion, continued SBA Lending profitability, additional HELOC sales, and stable asset quality for the remainder of FY25.

• The company remains well-capitalized and maintains strong liquidity, with ample borrowing capacity and unpledged securities.