Profit drops for First Savings Bank parent
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Jeffersonville-based First Savings Financial Group Inc. is reporting fiscal full-year net income of $8.2 million, down from $15.4 million the previous year.
The parent of First Savings Bank says the results come amid efforts to reduce inefficiencies and potential earnings volatility.
The bank is also reporting a fiscal fourth quarter net loss of $747,000, compared to net income $1.4 million during the same period last year.
During the last quarter, the bank took several actions it says will help will improve efficiencies. In September, the bank signed a letter of intent to sell its residential mortgage servicing rights portfolio, which is expected to close on Nov. 30.
The bank also dissolved its captive insurance subsidiary, First Savings Insurance Risk Management Inc.
Last month, First Savings announced it would cease its national originate-to-sell mortgage banking operations by the end of the current quarter.
“As we navigated the challenging environment for the banking industry during fiscal 2023, we focused on reducing balance sheet and operating inefficiencies, risks that could result in earnings volatility, and complexity of the organization, particularly in the fourth fiscal quarter,” CEO Larry Myers said in a news release. “We believe the measures taken will deliver shareholder value and we’ll continue to evaluate options that will further position the Company for future success.”
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