First Savings Financial Group, Inc. Quarterly Report for the Period Ending March 31, 2024
First Savings Financial Group, Inc. Quarterly Report for the Period Ending March 31, 2024
First Savings Financial Group, Inc. has reported a net income of $1.2 million for the quarter ended March 31, 2024, with total assets of $1.5 billion and total liabilities of $1.3 billion. The company’s common stock has a par value of $0.01 per share and is registered with the NASDAQ Stock Market, LLC. The company is classified as a smaller reporting company and an emerging growth company. The number of shares outstanding as of May 2, 2024, is 6,883,160.
Overview of Company Performance
First Savings Financial Group achieved solid financial performance over the past 6 months. Here are some key highlights:
| Metric | September 30, 2023 | March 31, 2024 | Change |
|---|---|---|---|
| Total Assets | $2.25 billion | $2.41 billion | +7% |
| Net Loans | $1.77 billion | $1.88 billion | +6% |
| Total Deposits | $1.68 billion | $1.79 billion | +7% |
| Net Income | $6.6 million | $5.8 million | -12% |
The company grew total assets by 7% over the past 6 months, driven by 6% loan growth and 7% deposit growth. However, net income declined 12% compared to the same period last year.
Loan Portfolio
The loan portfolio increased by $112 million, or 6%, from September 2023 to March 2024:
| Loan Type | September 30, 2023 | March 31, 2024 | Change |
|---|---|---|---|
| Residential Mortgage | $973 million | $1.05 billion | +8% |
| Residential Construction | $128 million | $155 million | +21% |
| Commercial Real Estate | $418 million | $427 million | +2% |
Residential mortgage and construction loans saw the strongest growth at 8% and 21%, respectively. Commercial real estate grew a modest 2%. The loan growth will provide more interest income, but also exposes the bank to increased credit risk.
Deposit Mix
Total deposits grew 7% to $1.79 billion. However, non-interest bearing deposits declined by $46 million while interest-bearing deposits increased $152 million. Specifically, brokered deposits rose by $110 million. While deposit growth is positive, the shift toward brokered deposits increases interest expense and volatility.
Profitability
| Metric | Q1 2023 | Q1 2024 | Change |
|---|---|---|---|
| Net Interest Income | $14.9 million | $14.3 million | -4% |
| Noninterest Income | $8.9 million | $5.1 million | -43% |
| Noninterest Expense | $18.5 million | $12.3 million | -34% |
| Net Income | $3.7 million | $4.9 million | +32% |
Net interest income declined due to margin compression from rising funding costs. Noninterest income decreased sharply due to lower mortgage banking revenue. However, noninterest expense also fell, which combined with loan growth, drove an increase in quarterly net income.
Credit Quality
The company recorded a $713,000 provision for loan losses in Q1 2024 compared to $372,000 in Q1 2023. While credit metrics remain relatively stable, the higher provision builds reserves to match loan growth.
The allowance for loan losses was 0.86% of total loans as of March 31, 2024 compared to 0.84% as of September 30, 2023. This level appears adequate given the bank’s conservative underwriting standards.
Capital and Liquidity
The bank’s capital levels remain very strong, with Total Risk-Based Capital at 12.2% as of March 31, 2024. Liquidity also appears ample, with $63 million of cash and $239 million of unpledged securities.
First Savings is well positioned to continue prudent growth while navigating challenges from the rising rate environment.