 JEFFERSONVILLE, Ind., July 27, 2020 GLOBE NEWSWIRE -- First Savings Financial Group, Inc. NASDAQ: FSFG - news the Company, the holding company for First Savings Bank the Bank, today reported net income of 15.4 million, or 6.51 per diluted share, for the quarter ended June 30, 2020 compared to net income of 4.4 million, or 1.85 per diluted share, for the quarter ended June 30, 2019. Commenting on the Companys performance, Larry W. Myers, President and CEO stated: We are very pleased with the outstanding quarter, including the stellar level of reported earnings, 2.9 million increase in allowance for loan losses, resiliency of asset quality, stability of the net interest margin, significant increase in stockholders equity, and substantial increase in shareholder value. The core bank, which is the bedrock of our entrepreneurial enterprise, continues to perform very well each quarter and the ancillary business lines, which provide diversification of our revenue streams, continue to generate additional meaningful return for our shareholders. Given such, I continue in the confidence that the Company is well-positioned to thrive during what is otherwise a very challenging banking environment and I continue to be very proud of our Company and staff.COVID-19 ResponseThe COVID-19 pandemic has placed, and continues to place, significant health, economic and other major hardships throughout the communities we serve, the United States and the entire world. The Company has implemented a number of procedures in response to the pandemic to support the safety and well-being of our customers, employees, and communities: Following the guidelines of the Center for Disease Control and local governments, we have updated our branch operating procedures. While our branches have remained open, the lobbies were temporarily closed and transactions were being conducted through drive-up windows or by appointment. Our branches have returned to pre-pandemic service levels, but have implemented safety precautions, including use of personal protective equipment PPE where and when prudent, enhanced daily cleaning and instructions to maintain appropriate social distancing. We also actively encourage customers to utilize PPE and alternative banking channels, such as our online and mobile banking platforms. Our customer service and retail departments remain fully staffed and available to assist customers remotely. Our corporate and operations offices have predominately returned to pre-pandemic schedules and processes, but we have enhanced daily cleaning and instructed employees to maintain appropriate social distancing. Our employees maintain the ability to work remotely, both safely and efficiently using technology, in the event that such is required or necessary. Most of our normally scheduled meetings, including Board of Director meetings and various committee meetings, are now held virtually instead of in-person. We continue to assist customers experiencing COVID-19 related hardships by approving payment extensions or loan forbearance agreements, and waiving or refunding certain fees. During the initial onset of the hardships, we proactively contacted all commercial borrowers and offered uniform payment extensions or loan forbearance agreements, while requests from consumer borrowers were reviewed and approved on case-by-case basis. Beginning with March 18, 2020 and through July 24, 2020, we had approved 206 payment extensions or loan forbearance agreements on approximately 90.6 million of balances in the loan portfolio, of which 81.9 million related to commercial real estate, 7.2 million related to residential real estate and consumer loans, and 1.5 million related to Small Business Administration SBA lending relationships. These payment extensions or loan forbearance agreements were generally for periods of three months and included deferment of both principle and interest. As of July 24, 2020, we had 48 loans with payment extensions or loan forbearance agreements on approximately 22.1 million of balances that were still in effect and set to expire between July 27, 2020 and October 13, 2020. Following the expiration of the initial payment extensions or loan forbearance agreements, we will entertain requests for extended periods on a case-by-case basis, which will generally include deferment of only the principle portion of payments but both principle and interest for hotel loans for a period of up to three months. Included in those 48 agreements in effect as of July 24, 2020, three were for second three-month periods of deferred principle and interest payments, two of which were hotel loans and the other in the entertainment service industry. As a result of the passage of the CARES Act, the SBA will make six months of principal and interest payments for loans of existing SBA clients that were in regular servicing status not delinquent at March 27, 2020 and for SBA loans of new clients originated between March 27, 2020 and September 27, 2020. The aforementioned 1.5 million of SBA lending relationships that were provided payment extensions and forbearance by the Company will also receive the six months of SBA-made payments once the forbearance periods have expired. In addition, the majority of the Companys SBA clients applied for participation in the SBAs Paycheck Protection Program PPP. We are actively participating in the PPP and had 180.5 million of outstanding PPP loan balances as of June 30, 2020. At June 30, 2020, we had approximately 3.5 million of deferred loan fees related to PPP loans that will be recognized over the life of the loans and as borrowers are granted forgiveness. The leisure and hospitality industries carry a higher degree of credit risk due to the COVID-19 pandemic. Based on our evaluation of the allowance for loan losses at June 30, 2020, management believes sufficient reserves are in place to cover estimated losses at that date. However, as the pandemic continues, losses could be recognized. The Company had outstanding loan balances to restaurants totaling 167.5 million as of June 30, 2020, of which 76.1 million is fully guaranteed by the SBA, including 74.5 million of PPP loans, and 77.4 million represents commercial real estate loans where the collateral property is leased to national-brand, investment-grade tenants. The Company had outstanding loan balances to hotels totaling 17.5 million as of June 30, 2020, of which 3.7 million is fully guaranteed by the SBA, including 606,000 of PPP loans.Management continues to closely monitor the pandemic and may take additional action to respond to the pandemics effects on the Companys business as the situation continues to evolve. We cannot determine or estimate the impact on our business at this time because the length and severity of the economic downturn is not known. We believe we are well-positioned to withstand any challenges that may be presented, and we are committed to continuing to serve our customers, employees and communities.Results of Operations for the Three Months Ended June 30, 2020 and 2019Net interest income increased 2.9 million, or 29.4, to 12.8 million for the quarter ended June 30, 2020 as compared to the same quarter in 2019. The increase in net interest income was due to a 2.3 million increase in interest income and a 623,000 decrease in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of 327.1 million, from 1.09 billion for 2019 to 1.42 billion for 2020, partially offset by a decrease in the weighted average tax-equivalent yield, from 4.88 for 2019 to 4.41 for 2020. Interest expense decreased due to a decrease in the average cost of interest-bearing liabilities, from 1.43 for 2019 to 0.88 for 2020, partially offset by an increase in the average balance of interest-bearing liabilities of 274.0 million, from 884.5 million for 2019 to 1.16 billion for 2020. The decrease in the average cost of interest-bearing liabilities for 2020 was due primarily to decreasing market interest rates on deposits and Federal Home Loan Bank FHLB borrowings. The Company also began participation in the Federal Reserve Banks PPP Liquidity Facility PPPLF during the quarter ended June 30, 2020. Borrowings under the PPPLF are secured by the outstanding PPP loans and have an interest rate of 0.35. Additional details are included in the Summarized Consolidated Average Balance Sheets table at the end of this release. The Company recognized 3.0 million in provision for loan losses for the quarter ended June 30, 2020, compared to 337,000 in 2019. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased 8.6 million, from 5.2 million at September 30, 2019 to 13.8 million at June 30, 2020, of which 3.7 million was guaranteed by the SBA. The Company recognized net charge-offs of 31,000 for the quarter ended June 30, 2020 compared to net charge-offs of 655,000 for the same quarter in 2019. The increase in the provision for loan losses for 2020 was primarily due to increased nonperforming assets as well as changes to qualitative factors within the allowance for loan losses calculation related to economic uncertainties surrounding COVID-19.Noninterest income increased 33.7 million for the quarter ended June 30, 2020 as compared to the same quarter in 2019. The increase was due primarily to an increase in mortgage banking income of 33.5 million. The increase in mortgage banking income was due to production from the secondary-market residential mortgage lending segment that commenced operations in April 2018. 