Friday, 15 November 2013

First Savings Financial Group, Inc. Reports Financial Results for the Fiscal Year Ended September 30, 2013

First Savings Financial Group, Inc. Reports Financial Results for the Fiscal Year Ended September 30, 2013

November 15, 2013 5:00 PM ET
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CLARKSVILLE, Ind., Nov. 15, 2013 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (Nasdaq:FSFG -1.59%, news) (the "Company"), the holding company for First Savings Bank, F.S.B. (the "Bank"), today reported net income of $4.7 million and net income available to common shareholders of $4.5 million, or $1.99 per diluted share, for the year ended September 30, 2013 compared to net income of $4.3 million and net income available to common shareholders of $4.1 million, or $1.85 per diluted share, for the year ended September 30, 2012.

Net interest income after provision for loan losses increased $1.6 million for the year ended September 30, 2013 as compared to the year ended September 30, 2012. Interest income increased $1.2 million when comparing the two years due primarily to an increase in the average balance of interest-earning assets of $68.3 million from $522.7 million for 2012 to $591.0 million for 2013, which more than offset the change in interest income due to a decrease in the average tax-equivalent yield on interest-earning assets from 5.11% for 2012 to 4.75% for 2013. Interest expense decreased $739,000 when comparing the two years due primarily to a decrease in the average cost of interest-bearing liabilities from 1.04% for 2012 to 0.77% for 2013, which more than offset the change in interest expense due to an increase in the average balance of interest-bearing liabilities of $62.7 million from $450.0 million for 2012 to $512.7 million for 2013. The provision for loan losses increased $326,000 from $1.5 million for 2012 to $1.9 million for 2013. Nonperforming loans increased $3.3 million from $5.8 million at September 30, 2012 to $9.1 million at September 30, 2013. The increase in nonperforming loans is due primarily to a single commercial real estate loan with an outstanding balance of $4.0 million that was placed on nonaccrual status as of September 30, 2013 based on regulatory guidance. This loan is classified as a troubled debt restructuring, but the loan was current and performing according to the terms of the note as of September 30, 2013. Net charge-offs were $1.2 million for the year ended September 30, 2013 compared to $1.3 million for the year ended September 30, 2012.

Noninterest income increased $836,000 for the year ended September 30, 2013 as compared to the year ended September 30, 2012. The increase was due primarily to increases in real estate lease income, net gain on sales of loans, and net gain on trading account securities of $317,000, $313,000 and $247,000, respectively, which more than offset a decrease in gain on life insurance of $324,000, representing a gain on a life insurance policy that was recognized during 2012.

Noninterest expenses increased $1.7 million for the year ended September 30, 2013 as compared to the year ended September 30, 2012. The increase was due primarily to increases in compensation and benefits expense and occupancy and equipment expense of $1.4 million and $385,000, respectively, which more than offset decreases in advertising and data processing expense of $160,000 and $157,000, respectively. The increase in compensation and benefits expense is due primarily to normal salary, wages and benefits increases, the addition of employees as a result of the acquisition of four branches from First Federal Savings Bank of Elizabethtown, Inc. ("FFSB") in July 2012 and increased ESOP compensation expense of approximately $399,000 primarily due to the accelerated repayment of the ESOP loan during the December 2012 quarter. The increase in occupancy and equipment expense is due primarily to the operation of the branches acquired from FFSB and the Bank's new branch location in New Albany, Indiana, which opened in August 2013. The decrease in data processing expense is due primarily to expenses recognized in 2012 for the acquisition of the four FFSB branches. The decrease in advertising expense was due primarily to a rebranding and advertising campaign for the Bank's new look and logo in 2012.

The Company recognized income tax expense of $1.8 million for the year ended September 30, 2013, for an effective tax rate of 27.8%, compared to income tax expense of $1.5 million, for an effective tax rate of 25.4%, for the year ended September 30, 2012. The higher effective tax rate for the year ended September 30, 2013 was primarily due to a lower level of tax exempt income for 2013.

Results of Operations for the Three Months Ended September 30, 2013 and 2012


For the three-month period ended September 30, 2013, the Company reported net income of $1.4 million and net income available to common shareholders of $1.3 million, or $0.58 per diluted share, compared to $1.1 million of net income and net income available to common shareholders, or $0.49 per diluted share, for the same period in 2012. 

Net interest income after provision for loan losses increased $452,000 for the three months ended September 30, 2013 as compared to the same period in 2012. Interest income decreased $151,000 when comparing the two periods due primarily to a decrease in the average tax-equivalent yield on interest-earning assets from 4.88% for 2012 to 4.62% for 2013, which more than offset the change in interest income due to an increase in the average balance of interest-earning assets of $21.4 million from $580.9 million for 2012 to $602.3 million for 2013. Interest expense decreased $264,000 when comparing the two periods due primarily to a decrease in the average cost of interest-bearing liabilities from 0.94% for 2012 to 0.71% for 2013, which more than offset the change in interest expense due to an increase in the average balance of interest-bearing liabilities of $17.6 million from $503.2 million for 2012 to $520.8 million for 2013. The provision for loan losses decreased $339,000 from $635,000 for 2012 to $296,000 for 2013 due primarily to a decrease in net charge-offs, which totaled $93,000 for the three months ended September 30, 2013 compared to $624,000 for the same period in 2012.


Noninterest income increased $247,000 for the three months ended September 30, 2013 as compared to the same period in 2012. The increase was due primarily to increases in real estate lease income and other income of $127,000 and $88,000, respectively, which more than offset a decrease in service charges on deposit accounts of $60,000.

Noninterest expenses increased $335,000 for the three months ended September 30, 2013 as compared to the same period in 2012. The increase was due primarily to increases in compensation and benefits expense and occupancy and equipment expense of $199,000 and $140,000, respectively, which more than offset a decrease in other operating expenses of $59,000. The increase in compensation and benefits expense is due primarily to normal salary, wages and benefits increases and the addition of employees as a result of the acquisition of the FFSB branches. The increase in occupancy and equipment expense is due primarily to the operation of the branches acquired from FFSB and the Bank's new branch location in New Albany, Indiana.

The Company recognized income tax expense of $573,000 for the three months ended September 30, 2013, for an effective tax rate of 29.5%, compared to income tax expense of $437,000, for an effective tax rate of 27.7%, for the same period in 2012. The higher effective tax rate for the period ended September 30, 2013 was primarily due to a lower level of tax exempt income for 2013.

Comparison of Financial Condition at September 30, 2013 and September 30, 2012

Total assets increased $21.5 million from $638.9 million at September 30, 2012 to $660.5 million at September 30, 2013. Investment securities, net loans and cash surrender value of life insurance increased $9.8 million, $19.3 million and $4.4 million, respectively, while cash and cash equivalents decreased $16.5 million from September 30, 2012 to September 30, 2013. Borrowings from Federal Home Loan Bank increased by $36.3 million and total deposits decreased $16.5 million.

Stockholders' equity decreased $673,000 from $82.9 million at September 30, 2012 to $82.3 million at September 30, 2013, due primarily to a $4.1 million decrease in other comprehensive income as a result of a decrease in net unrealized gains on securities available for sale, which is due to changes in the yield curve and long-term rate forecasts, and which more than offset retained net income of $2.9 million. At September 30, 2013, the Bank was considered "well-capitalized" under applicable regulatory capital guidelines.

First Savings Bank has fifteen offices in the Indiana communities of Clarksville, Jeffersonville, Charlestown, Sellersburg, New Albany, Floyds Knobs, Georgetown, Corydon, Lanesville, Elizabeth, English, Leavenworth, Marengo and Salem. 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.

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; 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.



Post office reports loss of $5 billion for year

Post office reports loss of $5 billion for year

November 15, 2013 2:22 PM ET
By By SAM HANANEL
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WASHINGTON (AP) - The U.S. Postal Service said Friday it lost $5 billion over the past year, and postal officials again urged Congress to pass legislation to help the beleaguered agency solve its financial woes.

In a positive sign, the loss was a fraction of the record $15.9 billion the Postal Service reported losing last year. But it was still the agency's seventh straight annual loss and came despite its first growth in revenue since 2008.

Operating revenue rose 1.2 percent to $66 billion, thanks to growth in the post office's package delivery business and higher volume in standard mail. That was not enough to offset long-term losses in first class mail — the post office's most profitable service — where revenues declined by 2.4 percent.

"We've achieved some excellent results for the year in terms of innovations, revenue gains and cost reductions, but without major legislative changes, we cannot overcome the limitations of our inflexible business model," Postmaster General Patrick Donahoe said.

The Postal Service has struggled for years with declining mail volume, but the lion's share of its financial plight stems from a 2006 congressional requirement that it make annual $5.6 billion payments to cover expected health care costs for future retirees. It has defaulted on three of those payments.

Postal officials have been pressing Congress to let the agency end Saturday mail delivery and reduce the payments for retiree health benefits. But prospects for a legislative fix are increasingly unlikely this year.

"The lack of action is simply unfair to customers and employees and all the stakeholders that depend on a healthy postal service," Donahoe said.

The Postal Service also has asked for an emergency rate hike in the cost of a first-class stamp from 46 to 49 cents. That request must be approved by the independent Postal Regulatory Commission.

Donahoe said the postal service saved $1 billion over the past year by consolidating 143 mail processing centers, eliminating 1,400 delivery routes and modifying retail hours in more than 7,000 post offices. It has also reduced its career workforce by 37,400 through attrition.

Fredric Rolando, president of the National Association of Letter Carriers, one of the Postal Service's largest unions, suggested the agency would have had an operating profit of $600 million if it did not have to pay the congressionally mandated $5.6 billion charge for pre-funding future retiree health benefits. Rolando urged lawmakers to reject any bills "that focus on slashing service and attacking postal employees and instead focus on fixing the pre-funding fiasco."

Earlier this week, the agency announced a lucrative deal with retail giant Amazon to begin package delivery on Sunday. While growing Internet use has shrunk the volume of first class mail dramatically, the rise of online shopping has been a boon to the postal service's package delivery business.

Revenue from package services rose by $923 million, or 8 percent, last year and shipping and package services now represent 16 percent of the agency's revenues.


The Postal Service is an independent agency that does not depend on tax money for its operations but is subject to congressional control.



Palace Coy on Petrescu Rumours

Updated: 15/11/2013 19:03 | By pa.press.net

Palace coy on Petrescu rumours

Dan Petrescu has been linked with the Crystal Palace job

Crystal Palace have refused to comment on reports that they are in advanced negotiations with former Chelsea defender Dan Petrescu to become the club's new manager.

Petrescu has been increasingly linked with the Selhurst Park job after previous reported candidates including Aitor Karanka and Rene Meulensteen confirmed appointments elsewhere.

And the 45-year-old would appear to be the new focus of Palace attention after co-chairman Steve Parish confirmed on Thursday he hoped to have a new boss installed by the weekend.

Parish had told Sky Sports: "We're getting closer. It's quite fluid at the moment. It's gone on a lot longer than we thought."

The 45-year-old Petrescu also played for Sheffield Wednesday, Bradford and Southampton and won 95 caps for Romania before starting his managerial career in 2003.

He led unfashionable Unirea Urziceni into the UEFA Champions League after winning the Romanian Liga 1 title in 2009, and inspired a 4-1 win over Rangers in Glasgow.

After moving to Russia later that year he lifted Kuban Krasnodar into the Russian Premier League before moving on to Dynamo Moscow, with whom he signed a three-year contract in 2012.



Updated: 15/11/2013 19:03 | By pa.press.net

Palace coy on Petrescu rumours

Dan Petrescu has been linked with the Crystal Palace job

Crystal Palace have refused to comment on reports that they are in advanced negotiations with former Chelsea defender Dan Petrescu to become the club's new manager.

Petrescu has been increasingly linked with the Selhurst Park job after previous reported candidates including Aitor Karanka and Rene Meulensteen confirmed appointments elsewhere.

And the 45-year-old would appear to be the new focus of Palace attention after co-chairman Steve Parish confirmed on Thursday he hoped to have a new boss installed by the weekend.

Parish had told Sky Sports: "We're getting closer. It's quite fluid at the moment. It's gone on a lot longer than we thought."

The 45-year-old Petrescu also played for Sheffield Wednesday, Bradford and Southampton and won 95 caps for Romania before starting his managerial career in 2003.

He led unfashionable Unirea Urziceni into the UEFA Champions League after winning the Romanian Liga 1 title in 2009, and inspired a 4-1 win over Rangers in Glasgow.

After moving to Russia later that year he lifted Kuban Krasnodar into the Russian Premier League before moving on to Dynamo Moscow, with whom he signed a three-year contract in 2012.

O'Neill's words of advice to Keane

Updated: 15/11/2013 19:03 | By pa.press.net

O'Neill's words of advice to Keane


Updated: 15/11/2013 19:03 | By pa.press.net

O'Neill's words of advice to Keane



Robbie Keane has no plans to hang up his boots just yet
Robbie Keane has no plans to hang up his boots just yet

Republic of Ireland boss Martin O'Neill has urged skipper Robbie Keane to play on as long as he can before heading into coaching.

The 33-year-old has signalled his intention to stay in the game once his playing days are over, and hopes to gain the relevant qualifications over the next few years.
However, O'Neill, who will send Keane out at the head of his team for the first time when they face Latvia in a friendly at the Aviva Stadium on Friday evening, is advising him to wring every last second out of his career.
He said: "If he wants to look like me, I would dissuade him from doing his coaching badges and getting into management.

"Play as long as you can, play until you're 64 and then think about management."
Keane has spoken on more than one occasion in recent months of his coaching ambitions, and that is something he will attempt to further in the near future.
He said: "Yes, of course, it's certainly something that I'm looking to - but it's first and foremost to play as long as I can, obviously.
"I wish I had have done the badges a few years ago, and that's the reason I'm doing it, because it's something that down the road I would like to get in to.

"But this January, I'm speaking to the FAI [Football Association of Ireland] about doing something and if it worked out I'd like to do it.
"But that's not just because in the next year or so, I feel I'll become a coach, far from it."
Keane is the Republic's record caps winner and goalscorer having found the back of the net 61 times in 130 senior appearances for his country, a record O'Neill described as "remarkable".

He said: "He's a natural goalscorer. That international record is fantastic, really, really fantastic.
"I'd prefer him not to be sitting here while I'm telling you that, but it's really brilliant.
"If you look at some of the other players who have played international football for reputedly better teams than the Republic of Ireland whose record is nowhere like that, his record is remarkable, really remarkable.
"Naturally I would have liked to have had in my time here a 23-year-old Robbie Keane instead of a 64-year-old Robbie Keane.
"That's a problem, but outside that, yes, it's a fantastic record."
O'Neill has retained Keane as his captain for the time being and has no immediate plans for a rethink on that situation.
He said: "Robbie's been the captain of the team and from the manner in which the players are enthused by it, I didn't see any reason whatsoever to change it.
"If he's playing brilliantly and scoring goals for us, I'll be absolutely delighted. And if he says, listen I want to enjoy it - I want to relinquish the captaincy, but I want to enjoy playing, as some players have done, sometimes the captaincy overall can be a wee bit too much for them - I will listen to that.
"But that's not anything that he's said at this minute."


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Luke Shaw is yet to score for club or country

Updated: 15/11/2013 19:03 | By pa.press.net

Big games will test Saints - Shaw

   Luke Shaw is yet to score for club or country

Luke Shaw believes positive results from the upcoming trips to Arsenal and Chelsea will show Southampton can maintain their challenge at the top.
Saints are third in the standings after their best-ever start to a top-flight season, even trumping the 1983-84 campaign in which they finished runners-up.
Mauricio Pochettino's side boast the best defensive record in the Barclays Premier League and are unbeaten in eight matches, although those records will come under pressure after the international break.

Southampton return to action in a top-of-the-table clash at leaders Arsenal, before returning to London to take on Chelsea the following weekend - matches that Shaw knows will prove Saints' mettle.
"The next two games we have got coming up will show whereabouts we are and whether we can challenge for the top," the highly-rated left-back said.
"If you take points from there, you know you are doing well.
"It is two of the biggest clubs in the league and hopefully we are going to go there positive to pick up points."

Collecting points in the capital would be an impressive feat, but Shaw's immediate attention is on representing his country.
The 18-year-old is currently on duty with the England Under-21s and put in an outstanding performance on Thursday evening as Gareth Southgate's side beat Finland 3-0 in Milton Keynes.

"It was very dominant," Shaw said of the manner of victory.
"We knew from when we played them out in Finland that it was going to be a hard game.
"But we knew when we play at our ground that we take full control and I think we did that. Obviously in the first half I was told to stay back a bit because sometimes when we lost the ball my space was free.
"But in the second half they went down to 10 men and it allowed me to get forward more."

That did not mean Shaw was not bombing down the left in the first half, though - in fact, it was the left-back's venomous strike that saw Saido Berahino net his first goal of the night.
The full-back's effort was destined for the bottom corner until a fine reaction save, meaning his wait for a goal for club and country continues.
"Obviously we have got San Marino on Tuesday so you never know what might happen then," Shaw said.

"But I hope (my first goal) will be for Saints. I want to score at home."

Big games will test Saints - Shaw

Updated: 15/11/2013 19:03 | By pa.press.net

Big games will test Saints - Shaw

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