First Savings Financial Group, Inc. Reports Financial Results For The Fiscal Year Ended September 30, 2025

Core Insights - First Savings Financial Group, Inc. reported a significant increase in net income for the fiscal year ended September 30, 2025, with net income of $23.2 million, or $3.32 per diluted share, compared to $13.6 million, or $1.98 per diluted share, for the previous year [1][9] - The company announced a merger agreement with First Merchants Corporation, which is expected to enhance shareholder value and contribute to future success [2][19] Financial Performance - Net interest income increased by $7.2 million, or 12.5%, to $65.3 million for the year ended September 30, 2025, driven by a $5.5 million increase in interest income and a $1.7 million decrease in interest expense [3][22] - Noninterest income rose by $6.3 million, 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][12] - Noninterest expense increased by $4.1 million, mainly due to higher compensation and benefits, reflecting stronger company performance [6][13] Asset Quality and Provisions - The company recognized a provision for unfunded lending commitments of $452,000 and a reversal of provision for credit losses for loans and securities totaling $118,000 and $9,000, respectively, indicating improved asset quality [4][11] - Nonperforming loans decreased from $16.9 million at September 30, 2024, to $14.6 million at September 30, 2025, reflecting a positive trend in loan performance [4][15] Tax and Equity - Income tax expense increased to $3.7 million for the year ended September 30, 2025, compared to $1.0 million for the same period in 2024, primarily due to higher taxable income [8][14] - 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 retained earnings [18][23] Financial Condition - Total assets decreased by $50.8 million, from $2.45 billion at September 30, 2024, to $2.40 billion at September 30, 2025, largely due to a decrease in net loans held for investment [15][17] - Total liabilities decreased by $67.2 million, primarily due to a reduction in total deposits, while customer deposits increased by $118.2 million [17][23]