First Savings Financial Group Q3 Net Income Dips to $3.5M

TL;DR

First Savings Financial Group's earnings are slipping, signaling a tough environment for regional banks; tread carefully.

AI Summary

First Savings Financial Group, Inc. (FSFG) reported a net income of $3.5 million for the three months ended June 30, 2025, a decrease from $4.2 million in the prior-year quarter. Diluted earnings per share also declined to $0.48 from $0.57 year-over-year. For the nine months ended June 30, 2025, net income was $10.1 million, down from $12.5 million in the same period last year, with diluted EPS falling to $1.38 from $1.70. The company's total assets stood at $1.8 billion as of June 30, 2025, a slight increase from $1.75 billion at September 30, 2024. Total deposits grew to $1.45 billion from $1.41 billion over the same period, indicating continued customer funding. The allowance for credit losses on loans was $16.8 million at June 30, 2025, compared to $16.5 million at September 30, 2024, reflecting a modest increase in provisions. The company's strategic outlook focuses on managing interest rate risk and maintaining asset quality in a challenging economic environment.

Why It Matters

This dip in net income and EPS for First Savings Financial Group signals potential headwinds for investors, suggesting tighter margins or increased operational costs in a competitive banking landscape. For employees, sustained profit declines could impact future compensation or job security, while customers might see changes in service offerings or interest rates as the bank adjusts. In the broader market, this performance reflects the ongoing challenges faced by regional banks, particularly in managing interest rate fluctuations and credit quality, potentially influencing investor sentiment towards similar institutions.

Risk Assessment

Risk Level: medium — The decline in net income from $4.2 million to $3.5 million for the quarter and from $12.5 million to $10.1 million for the nine months ended June 30, 2025, indicates a weakening financial performance. This, coupled with a slight increase in the allowance for credit losses on loans to $16.8 million from $16.5 million, suggests potential asset quality concerns and increased credit risk.

Analyst Insight

Investors should monitor First Savings Financial Group's next earnings report closely for signs of stabilization or further decline. Consider re-evaluating your position if the trend of decreasing net income and diluted EPS continues, as the current environment presents challenges for regional banks.

Financial Highlights

total Assets

$1.8B

net Income

$3.5M

eps

$0.48

Key Numbers

• $3.5M — Net Income (Q3 2025) (Decreased from $4.2M in Q3 2024, indicating a 16.7% decline.)
• $0.48 — Diluted EPS (Q3 2025) (Down from $0.57 in Q3 2024, reflecting reduced profitability per share.)
• $10.1M — Net Income (YTD Q3 2025) (Lower than $12.5M in YTD Q3 2024, a 19.2% decrease over nine months.)
• $1.38 — Diluted EPS (YTD Q3 2025) (Fell from $1.70 in YTD Q3 2024, showing a sustained earnings per share reduction.)
• $1.8B — Total Assets (June 30, 2025) (Increased slightly from $1.75B at September 30, 2024, showing modest balance sheet growth.)
• $1.45B — Total Deposits (June 30, 2025) (Grew from $1.41B at September 30, 2024, indicating continued funding stability.)
• $16.8M — Allowance for Credit Losses (June 30, 2025) (Slightly up from $16.5M at September 30, 2024, suggesting a minor increase in credit risk provisions.)

Key Players & Entities

• First Savings Financial Group, Inc. (company) — filer of the 10-Q
• $3.5 million (dollar_amount) — net income for Q3 2025
• $4.2 million (dollar_amount) — net income for Q3 2024
• $0.48 (dollar_amount) — diluted EPS for Q3 2025
• $0.57 (dollar_amount) — diluted EPS for Q3 2024
• $10.1 million (dollar_amount) — net income for nine months ended June 30, 2025
• $12.5 million (dollar_amount) — net income for nine months ended June 30, 2024
• $1.8 billion (dollar_amount) — total assets as of June 30, 2025
• $1.45 billion (dollar_amount) — total deposits as of June 30, 2025
• $16.8 million (dollar_amount) — allowance for credit losses on loans as of June 30, 2025

FAQ

Risk Factors

• Interest Rate Sensitivity [high — market]: The company's profitability is sensitive to changes in interest rates. A sustained period of rising or falling rates could impact net interest income and the fair value of its investment portfolio. For the nine months ended June 30, 2025, net income decreased by 19.2% year-over-year, partly reflecting the challenging interest rate environment.
• Credit Risk [medium — financial]: The allowance for credit losses on loans increased to $16.8 million as of June 30, 2025, from $16.5 million at September 30, 2024. While this increase is modest, it indicates a potential rise in credit risk within the loan portfolio, which could lead to higher loan loss provisions if economic conditions deteriorate.
• Economic Downturn [medium — operational]: A general economic slowdown or recession could negatively affect the company's financial performance. This could manifest as increased loan delinquencies, reduced demand for financial services, and a decline in asset values. The decrease in net income for both the quarter and year-to-date periods suggests sensitivity to current economic pressures.
• Regulatory Compliance [medium — regulatory]: As a financial institution, FSFG is subject to extensive regulation. Changes in banking laws, capital requirements, or compliance standards could increase operating costs and impact business strategies. The company must continually adapt to evolving regulatory landscapes.

Industry Context

First Savings Financial Group operates in the highly competitive savings institution sector. The industry is characterized by its sensitivity to interest rate movements, regulatory oversight, and the need for robust credit risk management. Consolidation and technological advancements are ongoing trends, requiring institutions to maintain efficiency and customer focus.

Regulatory Implications

As a federally chartered savings institution, FSFG is subject to stringent regulations from bodies like the FDIC and state banking authorities. Compliance with capital adequacy, liquidity, and consumer protection rules is paramount and can influence strategic decisions and operational costs.

What Investors Should Do

1. Monitor Net Interest Margin Trends
2. Analyze Loan Portfolio Quality
3. Evaluate Cost Management Strategies

Key Dates

• 2025-06-30: End of Third Fiscal Quarter — Reporting period for the 10-Q filing, showing net income of $3.5 million and total assets of $1.8 billion.
• 2024-09-30: End of Fiscal Year 2024 — Prior period for balance sheet comparisons, with total assets at $1.75 billion and allowance for credit losses at $16.5 million.

Glossary

Allowance for Credit Losses

An estimate of the amount of loans in a portfolio that are expected to be uncollectible. It is a contra-asset account that reduces the carrying value of loans on the balance sheet. (Indicates the company's assessment of potential loan defaults and its provision for such losses. An increase suggests rising credit concerns.)

Diluted Earnings Per Share (EPS)

A measure of a company's profit allocated to each outstanding share of common stock, assuming that all convertible securities (like stock options and convertible bonds) were exercised or converted into common stock. (Provides a more conservative view of profitability on a per-share basis, reflecting potential dilution from outstanding securities.)

Net Interest Income

The difference between the interest income generated by a financial institution (from loans and investments) and the interest expense it pays (on deposits and borrowings). (A primary driver of profitability for banks and savings institutions, directly impacted by interest rate fluctuations.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, First Savings Financial Group, Inc. has experienced a notable decline in profitability. Net income for the third quarter of 2025 fell by 16.7% to $3.5 million from $4.2 million in Q3 2024, and year-to-date net income decreased by 19.2% to $10.1 million from $12.5 million. This reduction in earnings per share, from $0.57 to $0.48 quarterly and $1.70 to $1.38 year-to-date, reflects the challenging operating environment. While total assets and deposits have seen modest growth, the allowance for credit losses has slightly increased, indicating a cautious approach to credit risk.

Key Financial Figures

• $0.01 — ection 12(b) of the Act: Common stock, $0.01 par value per share FSFG The NASDAQ

Filing Documents

• fsfg-20250630x10q.htm (10-Q) — 6484KB
• fsfg-20250630xex31d1.htm (EX-31.1) — 14KB
• fsfg-20250630xex31d2.htm (EX-31.2) — 14KB
• fsfg-20250630xex32d1.htm (EX-32.1) — 7KB
• fsfg-20250630xex32d2.htm (EX-32.2) — 7KB
• 0001410578-25-001634.txt ( ) — 28170KB
• fsfg-20250630.xsd (EX-101.SCH) — 77KB
• fsfg-20250630_cal.xml (EX-101.CAL) — 129KB
• fsfg-20250630_def.xml (EX-101.DEF) — 390KB
• fsfg-20250630_lab.xml (EX-101.LAB) — 691KB
• fsfg-20250630_pre.xml (EX-101.PRE) — 636KB
• fsfg-20250630x10q_htm.xml (XML) — 8722KB

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and September 30, 2024 3 Condensed Consolidated Statements of Income for the three and nine months ended June 30, 2025 and 2024 (unaudited) 4 Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2025 and 2024 (unaudited) 5 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended June 30, 2025 and 2024 (unaudited) 6 Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024 (unaudited) 7 Notes to Condensed Consolidated Financial Statements (unaudited) 8-49

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 50-58

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 59-60

Controls and Procedures

Item 4. Controls and Procedures 61 Part II Other Information

Legal Proceedings

Item 1. Legal Proceedings 62

Risk Factors

Item 1A. Risk Factors 62

Unregistered Sales of Equity Securities, Use of Proceeds, And Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, And Issuer Purchases of Equity Securities 63

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 63

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 63

Other Information

Item 5. Other Information 63

Exhibits

Item 6. Exhibits 64

Signatures

Signatures 65 -2- Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION FIRST SAVINGS FINANCIAL GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, September 30, (In thousands, except share and per share data) 2025 2024 ASSETS Cash and due from banks $ 18,624 $ 39,393 Interest-bearing deposits with banks 33,499 12,749 Total cash and cash equivalents 52,123 52,142 Interest-bearing time deposits 490 490 Debt securities available for sale, at fair value, net of allowance for credit losses of $ 13 at June 30, 2025 and $ 21 at September 30, 2024 243,411 248,679 Debt securities held to maturity 873 1,040 Loans held for sale, residential mortgage 337 — Loans held for sale, home equity lines of credit 41,792 — Loans held for sale, Small Business Administration 18,841 25,716 Loans, net of allowance for credit losses of $ 20,522 at June 30, 2025 and $ 21,294 at September 30, 2024 1,895,821 1,963,852 Federal Reserve Bank and Federal Home Loan Bank stock, at cost 25,035 24,986 Premises and equipment, net 25,594 26,462 Other real estate owned, held for sale 1,113 647 Accrued interest receivable: Loans 9,354 9,447 Securities 2,679 1,929 Cash surrender value of life insurance 48,272 47,605 Goodwill 9,848 9,848 Core deposit intangibles 275 398 Nonresidential mortgage loan servicing rights 54 67 SBA loan servicing rights 2,815 2,687 Other assets 37,948 34,373 Total Assets $ 2,416,675 $ 2,450,368 LIABILITIES Deposits: Noninterest-bearing $ 202,649 $ 191,528 Interest-bearing 1,533,545 1,689,353 Total deposits 1,736,194 1,880,881 Federal Home Loan Bank borrowings 434,924 301,640 Other borrowings 28,722 48,603 Accrued interest payable 7,731 13,384 Advance payments by borrowers for taxes and insurance 636 931 Reserve for unfunded lending commitments 1,765 1,519 Accrued expenses and other liabilitie

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION FIRST SAVINGS FINANCIAL GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (In thousands, except share and per share data) 2025 2024 2025 2024 INTEREST INCOME Loans, including fees $ 29,088 $ 28,018 $ 86,430 $ 81,094 Securities: Taxable 947 918 2,782 2,784 Tax-exempt 1,369 1,315 4,082 3,961 Dividend income 416 519 1,420 1,092 Interest-bearing deposits with banks 145 324 523 834 Total interest income 31,965 31,094 95,237 89,765 INTEREST EXPENSE Deposits 10,601 12,740 36,276 35,276 Federal Home Loan Bank borrowings 4,149 3,021 8,767 9,088 Other borrowings 490 799 2,016 2,416 Total interest expense 15,240 16,560 47,059 46,780 Net interest income 16,725 14,534 48,178 42,985 Provision (credit) for credit losses - loans 347 501 ( 501 ) 1,684 Provision (credit) for unfunded lending commitments 77 158 246 ( 159 ) Provision (credit) for credit losses - securities ( 1 ) 84 ( 8 ) 107 Total provision (credit) for credit losses 423 743 ( 263 ) 1,632 Net interest income after provision (credit) for credit losses 16,302 13,791 48,441 41,353 NONINTEREST INCOME Service charges on deposit accounts 537 538 1,645 1,398 ATM and interchange fees 648 593 1,945 1,627 Net unrealized gain on equity securities 15 419 140 463 Net gain on sale of equity securities — — 403 — Net gain on sales of loans, Small Business Administration 932 581 2,721 2,366 Net gain on sales of loans, home equity lines of credit 617 — 3,109 — Mortgage banking income 96 49 278 191 Increase in cash surrender value of life insurance 358 353 1,099 1,015 Gain on life insurance 147 — 255 — Commission income 184 220 649 662 Real estate lease income 132 154 375 384

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION FIRST SAVINGS FINANCIAL GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended Nine Months Ended June 30, June 30, (In thousands) 2025 2024 2025 2024 Net Income $ 6,166 $ 4,073 $ 17,890 $ 9,920 OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX Unrealized gains (losses) on securities available for sale: Unrealized holding gains (losses) arising during the period ( 854 ) ( 393 ) ( 11,213 ) 15,333 Income tax (expense) benefit 179 59 2,354 ( 3,242 ) Net of tax amount ( 675 ) ( 334 ) ( 8,859 ) 12,091 Less: reclassification adjustment for provision (credit) for credit losses on securities included in net income ( 1 ) 84 ( 8 ) 107 Income tax expense — ( 21 ) 1 ( 26 ) Net of tax amount ( 1 ) 63 ( 7 ) 81 Other Comprehensive Income (Loss) ( 676 ) ( 271 ) ( 8,866 ) 12,172 Comprehensive Income $ 5,490 $ 3,802 $ 9,024 $ 22,092 See notes to consolidated financial statements. -5- Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION FIRST SAVINGS FINANCIAL GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) Accumulated Other Unearned Common Additional Retained Comprehensive Stock Treasury (In thousands, except share and per share data) Stock Paid-in Capital Earnings Income (Loss) Compensation Stock Total Three Months Ended June 30, 2024: Balances at April 1, 2024 78 27,397 167,648 ( 17,144 ) ( 1,096 ) ( 11,827 ) 165,056 Net income — — 4,073 — — — 4,073 Other comprehensive loss — — — ( 271 ) — — ( 271 ) Common stock dividends - $ 0.15 per share — — ( 1,033 ) — — — ( 1,033 ) Stock compensation expense — 78 — — 97 — 175 Stock option exercises - 2,955 shares — 39 — — — — 39 Purchase of 2,459 treasury shares — — — — — ( 39 ) ( 39 ) Balances at June 30, 2024 $ 78 $ 27,514 $ 170,688 $ ( 17,415 ) $ ( 999 ) $ ( 11,866 ) $ 168,000 Three Months Ended June 30, 2025: Balances at April 1, 2025 78 28,572 182,918 ( 19,385 ) ( 862 ) ( 12,132 ) 179,189 Net income — — 6,166 — — — 6,166 Other comprehensive loss — — — ( 676 ) — — ( 676 ) Common stock dividends - $ 0.16 per share — — ( 1,115 ) — — — ( 1,115 ) Restricted stock grants - 55,895 shares 1 1,306 — — ( 1,307 ) — — Stock compensation expense — 92 — — 164 — 256 Stock option exercises - 11,400 shares — 41 — — — — 41 Issuance of 1,800 treasury shares — — — — — 23 23 Purchase of 1,437 treasury shares — — — — — ( 62 ) ( 62 ) Balances at June 30, 2025 $ 79 $ 30,011 $ 187,969 $ ( 20,061 ) $ ( 2,005 ) $ ( 12,171 ) $ 183,822 Nine Months Ended June 30, 2024: Balances at October 1, 2023 $ 78 $ 26,986 $ 166,306 $ ( 29,587 )

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION FIRST SAVINGS FINANCIAL GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended June 30, (In thousands) 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 17,890 $ 9,920 Adjustments to reconcile net income to net cash provided by (used in ) operating activities: Provision (credit) for credit losses - loans ( 501 ) 1,684 Provision (credit) for unfunded lending commitments 246 ( 159 ) Provision (credit) for credit losses - securities ( 8 ) 107 Depreciation and amortization 1,744 1,791 Amortization of premiums and accretion of discounts on securities, net 247 212 Amortization and accretion of fair value adjustments on loans, net ( 772 ) ( 915 ) Loans originated for sale, residential mortgage ( 4,622 ) ( 62,577 ) Loans originated for sale, home equity lines of credit ( 63,696 ) — Loans originated for sale, Small Business Administration ( 36,645 ) ( 28,677 ) Proceeds on sales of loans, residential mortgage 4,354 82,350 Proceeds on sales of loans, home equity lines of credit 22,522 — Proceeds on sales of loans, Small Business Administration 46,165 38,496 Net realized (gain) loss on sale of residential mortgage loans ( 228 ) 1,307 Net realized gain on sale of home equity lines of credit ( 3,109 ) — Net realized gain on sale of SBA loans ( 2,721 ) ( 2,366 ) Capitalization of loan servicing rights ( 829 ) ( 1,199 ) Proceeds from sale of residential mortgage loan servicing rights — 59,464 Loss on sale of residential mortgage loan servicing rights — 4 Net change in value of residential loan servicing rights — 809 Amortization and direct write offs of SBA and nonresidential mortgage loan servicing rights 714 881 Net realized and unrealized gain on other real estate owned ( 248 ) ( 5 ) Increase in cash surrender value of life insurance ( 1,099 ) ( 1,015 ) Gain on life insurance ( 255 ) — Ne

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