The First Savings Financial Group, Inc. (FSFG), the holding company for First Savings Bank, reported improved performance in the second quarter of 2025, with net income of $5.5 million, or $0.79 per diluted share. This represents a 14.3% increase in net income compared to the same period in 2024. A significant contributor to the improvement in performance was the increase in net interest margin, which rose to 2.93% in the second quarter of 2025, up 27 basis points from the same period in 2024. This increase in net interest margin was driven by a combination of factors, including the growth of deposits, the expansion of the bank’s loan portfolio, and the optimization of its interest-earning assets. The bank’s SBA Lending segment, which had been experiencing difficulties in the past, also reported a significant improvement in the second quarter of 2025. The segment posted its first profitable quarter since March 2024 and generated solid loan originations and sales. The segment’s nonperforming loans decreased by $4.2 million, while the ratio of nonperforming loans to total gross loans improved to 0.67%, a decrease of 20 basis points from the prior quarter. The bank’s asset quality also improved in the second quarter of 2025, with a decrease of $3.8 million in nonperforming loans and a decrease in the ratio of nonperforming loans to total gross loans. The bank’s management is optimistic about the remainder of the year, citing further expansion of the net interest margin, continued profitability from the SBA Lending segment, and additional sales of home equity lines of credit. “We are pleased with the second fiscal quarter performance, including the continued improvement in the net interest margin, which has increased eighteen and twenty-one basis points for the three and six months ended, respectively,” said Larry W. Myers, President and CEO of First Savings Financial Group, Inc. “The SBA Lending segment posted its first profitable quarter since March 2024 and posted a solid level of loans originations and sales. Asset quality improved with nonperforming loans decreasing $3.8 million from the prior quarter and the ratio of nonperforming loans to total gross loans improving to 0.67%, a decrease of twenty basis points from the prior quarter.”
The bank’s performance was also driven by a combination of factors, including the growth of deposits, the expansion of its loan portfolio, and the optimization of its interest-earning assets. The bank’s deposit base grew by $91.7 million, while its loan portfolio grew by $83.7 million. The bank’s management is focused on preserving asset quality and maintaining prudent capital and liquidity management, while also exploring opportunities to maximize shareholder value. The bank has a long-term vision of being the best community bank, and its employees are committed to achieving this goal. In terms of financial performance, the bank reported net interest income of $16.0 million for the second quarter of 2025, compared to $14.3 million in the same period of 2024. The bank’s noninterest income decreased by $150,000, while its noninterest expense increased by $1.9 million. The bank’s income tax expense was $589,000 for the second quarter of 2025, compared to $866,000 in the same period of 2024. The effective tax rate was 9.7% in the second quarter of 2025, compared to 14.9% in the same period of 2024. The bank’s return on average assets was 0.93% in the second quarter of 2025, compared to 0.84% in the same period of 2024. The bank’s return on average equity was 12.24% in the second quarter of 2025, compared to 11.96% in the same period of 2024. The bank’s efficiency ratio was 70.06% in the second quarter of 2025, compared to 65.26% in the same period of 2024. The bank’s net interest margin was 2.93% in the second quarter of 2025, compared to 2.66% in the same period of 2024. In terms of asset quality, the bank’s nonperforming loans decreased by $3.8 million in the second quarter of 2025, while the ratio of nonperforming loans to total gross loans improved to 0.67%, a decrease of 20 basis points from the prior quarter. “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,” said Myers. The bank’s common shares trade on the NASDAQ Stock Market under the symbol “FSFG”. The bank’s financial performance is subject to the risks and uncertainties inherent in the banking industry, and the bank’s management is committed to preserving asset quality and maintaining prudent capital and liquidity management. In addition, the bank is subject to the risks and uncertainties inherent in the market for bank stocks, and the bank’s management is committed to maximizing shareholder value. Overall, the bank’s performance in the second quarter of 2025 is a positive sign, and the bank’s management is optimistic about the remainder of the year. The bank’s financial performance is as follows:
| Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Change |
|---|---|---|
| Net income | $4.9 million | 14.3% to $5.5 million |
| Net interest margin (tax equivalent basis) | 2.66% | 27 basis points to 2.93% |
| Noninterest income | $3.6 million | Decrease of $150,000 |
| Noninterest expense | $11.8 million | Increase of $1.9 million |
| Income tax expense | $866,000 | Decrease of $289,000 |
| Return on average assets | 0.84% | 0.09% to 0.93% |
| Return on average equity | 11.96% | 0.28% to 12.24% |
| Efficiency ratio | 65.26% | 4.8% to 70.06% |
| Net interest margin (tax equivalent basis) | 2.68% | 34 basis points to 2.93% |
The bank’s asset quality is improving, with a decrease in nonperforming loans and an improvement in the ratio of nonperforming loans to total gross loans. The bank’s return on average assets and return on average equity are improving, indicating a stronger financial position. The bank’s efficiency ratio is 70.06%, which is lower than the industry average. The bank’s net interest margin is 2.93%, which is higher than the industry average. The bank’s asset quality is improving, with a decrease in nonperforming loans and an improvement in the ratio of nonperforming loans to total gross loans. The bank’s management is committed to preserving asset quality and maintaining prudent capital and liquidity management. The bank’s financial performance is as follows:
- Net income: $5.5 million, or $0.79 per diluted share
- Net interest margin (tax equivalent basis): 2.93%
- Noninterest income: $3.6 million
- Noninterest expense: $11.8 million
- Income tax expense: $589,000
- Return on average assets: 0.93%
- Return on average equity: 12.24%
- Efficiency ratio: 70.06%
The bank’s asset quality is improving, with a decrease in nonperforming loans and an improvement in the ratio of nonperforming loans to total gross loans. The bank’s financial performance is a positive sign, indicating a stronger financial position.
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