First Savings Financial Group (FSFG) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $4.1 million ($0.60 per diluted share), up from $2.3 million ($0.34 per share) in Q3 2023; nine-month net income was $9.9 million ($1.45 per share), up from $8.9 million ($1.29 per share) year-over-year.

• Adjusted Q3 net income was $3.5 million ($0.52 per share) excluding nonrecurring items; adjusted nine-month net income was $9.4 million ($1.37 per share).

• Core banking segment net income rose to $4.7 million ($0.69 per share) from $2.9 million ($0.43) year-over-year; adjusted core banking net income was $4.2 million ($0.61 per share).

• Asset quality remains strong, with management focused on deposit growth, liquidity, and capital improvement.

• The company completed the sale of all residential mortgage servicing rights during the nine months ended June 30, 2024.

Financial highlights

• Net interest income for Q3 2024 was $14.5 million, down 2.2% from Q3 2023; nine-month net interest income was $43.0 million, down 6.6% year-over-year.

• Net interest margin was 2.67% for Q3 2024, down from 2.94% year-over-year.

• Noninterest income fell $4.0 million in Q3 2024, mainly from the cessation of national mortgage banking operations.

• Noninterest expense decreased $6.5 million in Q3 2024, primarily from lower compensation and operating costs after winding down mortgage banking.

• Provision for credit losses for loans was $501,000 in Q3 2024, up from $441,000 year-over-year.

Outlook and guidance

• Management expects continued focus on core banking and SBA lending, with mortgage banking no longer a separate segment after the winddown.

• Management expects to benefit from a lower interest rate environment and continues to focus on asset quality, selective lending, and operational efficiency.

• SBA Lending segment performance was disappointing, but the pipeline is strong for Q4 2024.

• No material changes to risk factors or forward-looking statements since the last annual report.