FIRST SAVINGS FINANCIAL GROUP, INC. REPORTS 2014 FIRST QUARTER FINANCIAL RESULTS
Clarksville, Indiana—January 22, 2014. First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank, F.S.B. (the "Bank"), today reported net income of $1.0 million and net income available to common shareholders of $985,000, or $0.44 per diluted share, for the quarter ended December 31, 2013 compared to net income of $1.0 million and net income available to common shareholders of $973,000, or $0.43 per diluted share, for the quarter ended December 31, 2012.
Net interest income after provision for loan losses increased $298,000 for the quarter ended December 31, 2013 as compared to the same period in 2012. Interest income decreased $26,000 when comparing the two periods due primarily to a decrease in the average tax-equivalent yield on interest-earning assets from 4.86% for 2012 to 4.55% for 2013, which more than offset the change in interest income due to an increase in the average balance of interest-earning assets of $37.1 million from $575.9 million for 2012 to $613.0 million for 2013. Interest expense decreased $173,000 when comparing the two periods due primarily to a decrease in the average cost of interest-bearing liabilities from 0.87% for 2012 to 0.69% for 2013, which more than offset the change in interest expense due to an increase in the average balance of interest-bearing liabilities of $30.5 million from $503.3 million for 2012 to $533.8 million for 2013. The provision for loan losses decreased $151,000 from $452,000 for 2012 to $301,000 for 2013. Nonperforming loans decreased $3.8 million from $9.1 million at September 30, 2013 to $5.3 million at December 31, 2013. The decrease in nonperforming loans is due primarily to a single commercial real estate loan with an outstanding balance of $4.0 million that was reclassified from nonaccrual to accruing status as of December 31, 2013. Net recoveries were $132,000 for the quarter ended December 31, 2013 compared to net charge-offs of $223,000 for the same period in 2012.
Noninterest income increased $104,000 for the quarter ended December 31, 2013 as compared to the same period in 2012. The increase was due primarily to increases in real estate lease income and net gain on trading account securities of $97,000 and $55,000, respectively, which more than offset decreases in net gain on sales of loans and service charges on deposit accounts of $30,000 and $20,000, respectively.
Noninterest expenses increased $345,000 for the quarter ended December 31, 2013 as compared to the same period in 2012. The increase was due primarily to increases in compensation and benefits expense and occupancy and equipment expense of $163,000 and $148,000, respectively. The increase in compensation and benefits expense is due primarily to normal salary, wages and benefits increases, and increased ESOP compensation expense. ESOP compensation expense for the quarters ended December 31, 2013 and 2012 included approximately $341,000 and $323,000, respectively, of additional expense due to the accelerated repayment of the ESOP loan. The increase in occupancy and equipment expense is due primarily to the Bank’s new branch location in New Albany, Indiana, which opened in August 2013.
The Company recognized income tax expense of $423,000 for the quarter ended December 31, 2013, for an effective tax rate of 29.2%, compared to income tax expense of $378,000, for an effective tax rate of 27.1%, for the same period in 2012.
Comparison of Financial Condition at December 31, 2013 and September 30, 2013
Total assets increased $26.4 million from $660.5 million at September 30, 2013 to $686.9 million at December 31, 2013. Investment securities, net loans and cash surrender value of life insurance increased $11.3 million, $10.6 million and $5.1 million, respectively. Total deposits increased $13.8 million due primarily to a $17.5 million increase in brokered certificates of deposit, which more than offset attrition in retail certificates of deposit. In addition, borrowings from Federal Home Loan Bank increased by $13.2 million in order to fund increases in loans and investment securities.
Stockholders’ equity increased $194,000 from $82.3 million at September 30, 2013 to $82.4 million at December 31, 2013. At December 31, 2013, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.
First Savings Bank has fifteen offices in the Indiana communities of Clarksville, Jeffersonville, Charlestown, Sellersburg, New Albany, Floyds Knobs, Georgetown, Corydon, Lanesville, Elizabeth, English, Leavenworth, Marengo and Salem. Access to First Savings Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank's website at www.fsbbank.net.
This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.
Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
| | | Three Months Ended | |
| | | December, 31 | |
| | | 2013 | | | 2012 | |
| OPERATING DATA: | | | | | | | | |
| (In thousands, except share and per share data) | | | | | | | | |
| | | | | | | | | |
| Total interest income | | $ | 6,734 | | | $ | 6,760 | |
| Total interest expense | | | 922 | | | | 1,095 | |
| | | | | | | | | |
| Net interest income | | | 5,812 | | | | 5,665 | |
| Provision for loan losses | | | 301 | | | | 452 | |
| | | | | | | | | |
| Net interest income after provision for loan losses | | | 5,511 | | | | 5,213 | |
| | | | | | | | | |
| Total noninterest income | | | 1,104 | | | | 1,000 | |
| Total noninterest expense | | | 5,164 | | | | 4,819 | |
| | | | | | | | | |
| Income before income taxes | | | 1,451 | | | | 1,394 | |
| Income tax expense | | | 423 | | | | 378 | |
| | | | | | | | | |
| Net Income | | $ | 1,028 | | | $ | 1,016 | |
| | | | | | | | | |
| Less: Preferred stock dividends declared | | | (43 | ) | | | (43 | ) |
| | | | | | | | | |
| Net Income available to common shareholders | | $ | 985 | | | $ | 973 | |
| | | | | | | | | |
| Net Income per share, basic | | $ | 0.46 | | | $ | 0.45 | |
| Weighted average common shares outstanding, basic | | | 2,158,106 | | | | 2,155,999 | |
| | | | | | | | | |
| Net Income per share, diluted | | $ | 0.44 | | | $ | 0.43 | |
| Weighted average common shares outstanding, diluted | | | 2,260,658 | | | | 2,237,367 | |
| | | | | | | | | |
| Performance ratios (annualized): | | | | | | | | |
| Return on average assets | | | 0.61 | % | | | 0.63 | % |
| Return on average equity | | | 4.95 | % | | | 4.88 | % |
| Return on average common stockholders' equity | | | 6.23 | % | | | 6.14 | % |
| Interest rate spread | | | 3.86 | % | | | 3.99 | % |
| Net interest margin | | | 3.95 | % | | | 4.10 | % |
| Efficiency ratio | | | 74.67 | % | | | 72.30 | % |
| | | December 31, | | | September 30, | |
| | | 2013 | | | 2013 | |
| FINANCIAL CONDITION DATA: | | | | | | | | |
| (Dollars in thousands, except per share data) | | | | | | | | |
| | | | | | | | | |
| Total assets | | $ | 686,943 | | | $ | 660,455 | |
| Cash and cash equivalents | | | 19,957 | | | | 20,815 | |
| Investment securities | | | 185,057 | | | | 173,794 | |
| Gross loans | | | 424,992 | | | | 413,913 | |
| Allowance for loan losses | | | 5,971 | | | | 5,538 | |
| Earning assets | | | 622,138 | | | | 600,776 | |
| Goodwill | | | 7,936 | | | | 7,936 | |
| Core deposit intangibles | | | 1,983 | | | | 2,069 | |
| Deposits | | | 491,522 | | | | 477,726 | |
| FHLB borrowings | | | 102,565 | | | | 89,348 | |
| Total liabilities | | | 604,496 | | | | 578,202 | |
| Stockholders' equity | | | 82,447 | | | | 82,253 | |
| | | | | | | | | |
| Book value per common share | | | 28.88 | | | | 28.32 | |
| Tangible book value per common share | | | 24.49 | | | | 23.97 | |
| | | | | | | | | |
| Non-performing assets: | | | | | | | | |
| Nonaccrual loans | | | 4,702 | | | | 8,893 | |
| Accruing loans past due 90 days | | | 646 | | | | 164 | |
| Troubled debt restructurings classified as performing loans | | | 10,020 | | | | 5,930 | |
| Foreclosed real estate | | | 979 | | | | 799 | |
| Other nonperforming assets | | | 2 | | | | 2 | |
| | | | | | | | | |
| Asset quality ratios: | | | | | | | | |
| Allowance for loan losses as a percent of total gross loans | | | 1.39 | % | | | 1.32 | % |
| Allowance for loan losses as a percent of nonperforming loans | | | 111.65 | % | | | 61.15 | % |
| Nonperforming loans as a percent of total loans | | | 1.25 | % | | | 2.17 | % |
| Nonperforming assets as a percent of total assets | | | 2.38 | % | | | 2.39 | % |
Contact
Tony A. Schoen, CPA
Chief Financial Officer
812-283-0724
