First Savings Financial Group (FSFG) Q4 2024 earnings summary

Executive summary

• Net income for FY 2024 was $13.6 million ($1.98 per diluted share), up from $8.2 million ($1.19 per share) in FY 2023; core banking net income rose to $16.9 million ($2.47 per share) from $14.9 million ($2.18 per share) year-over-year.

• Fiscal 2024 focused on rebuilding, repositioning, and expense reduction, including ceasing national mortgage banking operations and selling the mortgage servicing rights portfolio.

• Management remains focused on core banking, asset quality, selective lending, deposit growth, SBA lending, and improving liquidity and capital for FY 2025.

Financial highlights

• Net interest income for FY 2024 decreased 5.7% to $58.1 million; net interest margin fell to 2.68% from 3.10% year-over-year.

• Noninterest income dropped $12.8 million, mainly due to a $14.1 million decline in mortgage banking income after ceasing national mortgage banking operations.

• Noninterest expense decreased $23.2 million, driven by lower compensation, data processing, and other operating expenses.

• Income tax expense rose to $1.0 million (effective tax rate 7.0%) from $10,000 (0.1%) due to higher taxable income.

• For Q4 2024, net income was $3.7 million ($0.53 per share) versus a net loss of $747,000 ($0.11 loss per share) in Q4 2023.

Outlook and guidance

• Management expects improved performance in FY 2025, emphasizing core banking, asset quality, selective lending, deposit growth, SBA lending, and strategic opportunities.