Attached files
| file | filename |
|---|---|
| 8-K - First Savings Financial Group, Inc. | v209335_8k.htm |
FIRST
SAVINGS FINANCIAL GROUP, INC. REPORTS 2011 FIRST QUARTER FINANCIAL
RESULTS
Clarksville,
Indiana—January 26, 2011. 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 $1.1 million, or $0.50 per diluted share,
for the quarter ended December 31, 2010 compared to net income of $892,000, or
$0.38 per diluted share, for the quarter ended December 31, 2009.
Net
interest income after provision for loan losses increased $155,000 for the
quarter ended December 31, 2010 as compared to the same period in 2009. Interest
income decreased $95,000 when comparing the two periods due primarily to a
decrease in the average tax-equivalent yield on interest-earning assets from
6.04% for 2009 to 5.75% for 2010, which more than offset an increase in the
average balance of interest-earning assets of $16.9 million from $442.9 million
in 2009 to $459.8 million in 2010. Interest expense decreased $244,000 due
primarily to decreases in the average cost of interest-bearing liabilities from
1.66% in 2009 to 1.37% in 2010 and the average balance of interest-bearing
liabilities of $1.5 million from $418.7 million in 2009 to $417.2 million in
2010. The provision for loan losses decreased $6,000 from $358,000 for the three
months ended December 31, 2009 to $352,000 for the same period in
2010.
Noninterest
income increased $129,000 for the three months ended December 31, 2010 as
compared to the same period in 2009. The increase was due primarily to an
increase in the net gains on sales of mortgage loans of $97,000 for 2010
compared to 2009, and gains on the sales of securities available for sale of
$68,000 for 2010. There were no sales of securities available for sale in the
quarter ended December 31, 2009. These increases more than offset a decrease in
service charges on deposit accounts of $50,000, which was due primarily to a
decrease in overdraft fee income.
Noninterest
expenses increased $73,000 for the three months ended December 31, 2010 as
compared to the same period in 2009. The increase was due primarily to increases
in compensation and benefits and data processing expenses of $78,000 and
$49,000, respectively, which more than offset a decrease in occupancy and
equipment expense of $87,000. The increase in compensation and
benefits was due primarily to $104,000 of severance compensation for the early
retirement of several officers recorded during the quarter ended December 31,
2010 and the increase in data processing expense is due primarily to an increase
in deposit accounts. The decrease in occupancy and equipment expense when
comparing the two periods is primarily due to depreciation expense recorded in
2009 on core operating system assets that were disposed of in connection with
Bank’s core processing conversion during the prior fiscal year.
The
Company recognized income tax expense of $457,000 for the three months ended
December 31, 2010, for an effective tax rate of 29.7%, compared to income tax
expense of $438,000, for an effective tax rate of 32.9%, for the same period in
2009.
Comparison
of Financial Condition at December 31, 2010 and September 30, 2010
Total
assets increased $6.7 million from $508.4 million at September 30, 2010 to
$515.1 million at December 31, 2010. Investment securities increased $9.8
million while net loans decreased $4.5 million from September 30, 2010 to
December 31, 2010. The increase in assets was funded primarily by an
increase in deposits of $7.8 million from $366.2 million at September 30, 2010
to $374.0 million at December 30, 2010.
Stockholders’
equity decreased $1.0 million from $55.2 million at September 30, 2010 to $54.2
million at December 31, 2010. The decrease was due primarily to a
$1.6 million decrease in accumulated other comprehensive income, representing
the net unrealized gains on available for sale securities, and the open market
repurchase of $665,000 of common stock recorded as treasury stock, which more
than offset $1.1 million of retained net earnings. During the quarter ended
December 31, 2009, the Company declared a special dividend of $0.08 per share,
totaling $193,000, which was paid to shareholders of record as of the close of
business on January 4, 2010. At December 31, 2010, the Bank was
considered “well-capitalized” under applicable regulatory capital
guidelines.
First
Savings Bank has twelve offices in the Indiana communities of Clarksville,
Jeffersonville, Charlestown, Sellersburg, Floyds Knobs, Georgetown, Corydon,
English, Leavenworth, Marengo and Salem, Indiana. 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. Community First Bank division customers can continue to access
their accounts with Internet access via the CFB website at
www.c-f-b.com.
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; the Company’s inability to realize the expected benefits of the
acquisition of CFB; 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.
Contact
Tony A.
Schoen, CPA
Chief
Financial Officer
812-283-0724
CONSOLIDATED
FINANCIAL HIGHLIGHTS
(Unaudited)
|
Three
Months Ended
|
||||||||
|
December 31,
|
||||||||
|
OPERATING
DATA:
|
2010
|
2009
|
||||||
|
(In
thousands, except share and per share data)
|
||||||||
|
Total
interest income
|
$ | 6,500 | $ | 6,595 | ||||
|
Total
interest expense
|
1,423 | 1,667 | ||||||
|
Net
interest income
|
5,077 | 4,928 | ||||||
|
Provision
for loan losses
|
352 | 358 | ||||||
|
Net
interest income after provision for loan losses
|
4,725 | 4,570 | ||||||
|
Total
noninterest income
|
854 | 725 | ||||||
|
Total
noninterest expense
|
4,038 | 3,965 | ||||||
|
Income
before income taxes
|
1,541 | 1,330 | ||||||
|
Income
tax expense
|
457 | 438 | ||||||
|
Net
Income
|
$ | 1,084 | $ | 892 | ||||
|
Net
Income per share, basic
|
$ | 0.50 | $ | 0.38 | ||||
|
Weighted
average common shares outstanding, basic
|
2,156,683 | 2,348,048 | ||||||
|
Net
Income per share, diluted
|
$ | 0.50 | $ | 0.38 | ||||
|
Weighted
average common shares outstanding, diluted
|
2,180,418 | 2,348,048 | ||||||
|
Performance
ratios (annualized):
|
||||||||
|
Return
on average assets
|
0.86 | % | 0.74 | % | ||||
|
Return
on average equity
|
7.83 | % | 6.74 | % | ||||
|
Interest
rate spread
|
4.38 | % | 4.38 | % | ||||
|
Net
interest margin
|
4.51 | % | 4.53 | % | ||||
|
Efficiency
ratio
|
68.08 | % | 70.14 | % | ||||
|
December
31,
|
September
30,
|
|||||||
|
FINANCIAL
CONDITION DATA:
|
2010
|
2010
|
||||||
|
(Dollars
in thousands)
|
||||||||
|
Total
assets
|
$ | 515,097 | $ | 508,442 | ||||
|
Cash
and cash equivalents
|
11,477 | 11,278 | ||||||
|
Investment
securities
|
123,725 | 113,905 | ||||||
|
Gross
loans
|
343,053 | 347,426 | ||||||
|
Allowance
for loan losses
|
3,959 | 3,811 | ||||||
|
Goodwill
|
5,940 | 5,940 | ||||||
|
Core
deposit intangible
|
2,374 | 2,447 | ||||||
|
Earning
assets
|
471,472 | 464,668 | ||||||
|
Deposits
|
374,024 | 366,161 | ||||||
|
FHLB
borrowings
|
67,784 | 67,159 | ||||||
|
Total
liabilities
|
460,946 | 453,291 | ||||||
|
Stockholders'
equity
|
54,151 | 55,151 | ||||||
|
Non-performing
assets:
|
||||||||
|
Nonaccrual
loans
|
4,755 | 4,573 | ||||||
|
Accruing
loans past due 90 days
|
854 | 1,393 | ||||||
|
Foreclosed
real estate
|
1,793 | 1,331 | ||||||
|
Other
nonperforming assets
|
132 | 171 | ||||||
|
Asset
quality ratios:
|
||||||||
|
Allowance
for loan losses as a percent of total gross loans
|
1.15 | % | 1.09 | % | ||||
|
Allowance
for loan losses as a percent of nonperforming loans
|
70.58 | % | 63.88 | % | ||||
|
Nonperforming
loans as a percent of total loans
|
1.63 | % | 1.71 | % | ||||
|
Nonperforming
assets as a percent of total assets
|
1.46 | % | 1.47 | % | ||||