First Savings Financial Group reports Q3 EPS 34c, consensus 55c

Q3 NII decreased $1.0M, or 6.6%, to $14.9M vs. the same period 2022 Q3 provision for loan losses was $441K vs. $532K for the same period in 2022. Q3 net charge-offs were $61K vs. $27K in 2022. Tangible book value per share was $22.52 from $22.78 at previous quarter end. CEO Larry Myers stated “This challenging environment for the banking industry will pass, but as it persists we’re active to realign the balance sheet, stabilize the margin, manage expenses and make select investments in opportunities that will be fruitful in future quarters and years. We continue to focus on core banking; asset quality; selective high-quality lending; lesser reliance on wholesale funding; improvement of liquidity, capital and interest rate sensitivity positions; and evaluation of options and opportunities to achieve such. We have acted to protect from persistently higher interest rates, which has adversely affected the current margin, while still remaining well-positioned to benefit from a potential rates-down environment. The underperformance of the mortgage banking and SBA lending segments are recognized but the macroeconomic environment for these businesses to perform well continues to improve. We are focused on managing through the remainder of this economic dislocation and positioning the company for enhanced shareholder value.”