First Savings Financial (FSFG) - 2025 Q4 - Annual Results

Financial Performance - The Company reported net income of $23.2 million, or $3.32 per diluted share, for the fiscal year ended September 30, 2025, compared to $13.6 million, or $1.98 per diluted share, for the fiscal year ended September 30, 2024[1]. - Net income for Q3 2025 was $5,271,000, up from $3,672,000 in Q3 2024, representing a year-over-year growth of 43.5%[22]. - The company reported a net income attributable to the Core Bank (GAAP) of $5,189,000, up from $4,093,000, marking a 26.8% increase[26]. - Total net income per share, basic for September 2025 was $0.76, a decrease of 15.56% from $0.90 in June 2025[31]. - Core Banking segment's net income per share, diluted was $0.75 for September 2025, compared to $0.82 in June 2025, reflecting a decline of 8.54%[31]. Income and Revenue - Net interest income increased by $7.2 million, or 12.5%, to $65.3 million for the year ended September 30, 2025, with a tax equivalent net interest margin of 2.94% compared to 2.68% for the same period in 2024[3]. - Noninterest income rose by $6.3 million for the year ended September 30, 2025, primarily due to a $4.0 million net gain on sales of home equity lines of credit (HELOC) and a $1.2 million increase in net gain on sale of SBA loans[5]. - Total interest income for Q3 2025 was $32,290,000, an increase from $32,223,000 in Q3 2024, while total interest expense decreased to $15,160,000 from $17,146,000[22]. - Total noninterest income increased to $4,659,000 in Q3 2025 from $2,842,000 in Q3 2024, indicating strong growth in this segment[22]. - Net interest income for Q3 2025 was $17,130,000, an increase from $15,077,000 in Q3 2024, representing a growth of 13.6%[27]. Assets and Liabilities - Total assets decreased by $50.8 million, from $2.45 billion at September 30, 2024, to $2.40 billion at September 30, 2025, primarily due to a decrease in net loans held for investment[14]. - Total assets as of September 30, 2025, were $2,399,532,000, a slight decrease from $2,450,368,000 as of September 30, 2024[28]. - Total loans, net of allowance for credit losses, were $1,886,818,000 as of September 30, 2025, compared to $1,963,852,000 a year earlier, indicating a decrease of 3.9%[28]. - Total interest-earning assets amounted to $2,288,398,000 for September 2025, a slight decrease from $2,299,635,000 in June 2025[33]. Equity and Stockholder Information - Total stockholders' equity increased by $16.4 million, from $177.1 million at September 30, 2024, to $193.5 million at September 30, 2025, driven by an $18.8 million increase in retained net income[16]. - Book value per share increased to $27.73 as of September 30, 2025, compared to $26.35 as of June 30, 2025, indicating a growth of $1.38[23]. - The tangible book value per share increased to $26.28 in Q3 2025 from $24.23 in Q3 2024, a rise of 8.5%[27]. Credit Quality - The Company recognized net charge-offs totaling $887,000 for the year ended September 30, 2025, compared to $527,000 in 2024, with a decrease in nonperforming loans from $16.9 million to $14.6 million[4]. - The allowance for credit losses as a percentage of total gross loans was 1.06% as of September 30, 2025, slightly down from 1.07% as of June 30, 2025[23]. - Nonperforming loans as a percentage of total loans decreased to 0.77% as of September 30, 2025, from 0.79% in the previous quarter[29]. - The company reported a provision for credit losses of $588,000 in Q3 2025, compared to $1,460,000 in Q3 2024, showing a reduction in credit loss provisions[28]. Operational Efficiency - Noninterest expense increased by $4.1 million for the year ended September 30, 2025, mainly due to increases in compensation and benefits and other operating expenses[6]. - The efficiency ratio improved to 67.13% in Q3 2025 from 70.55% in Q3 2024, indicating enhanced operational efficiency[27]. - The efficiency ratio for Core Banking segment improved to 66.73% in September 2025 from 61.68% in June 2025[31]. Strategic Developments - The Company announced its agreement to merge with First Merchants Corporation on September 25, 2025, as part of its strategy to enhance shareholder value[2].