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First Savings Financial Group, Inc. (Nasdaq:FSFG) , the holding company for First Savings Bank, today reported net income and net income available to common shareholders of $1.5 million, or $0.66 per diluted share, for the quarter ended March 31, 2015 compared to net income and net income available to common shareholders of $1.5 million, or $0.66 per diluted share, for the quarter ended March 31, 2014.
Net interest income after provision for loan losses decreased $39,000 for the quarter ended March 31, 2015 as compared to the same period in 2014. Interest income decreased $66,000 when comparing the two periods due primarily to a decrease in the average tax-equivalent yield on interest-earning assets from 4.55% for 2014 to 4.36% for 2015, which more than offset the change in interest income due to an increase in the average balance of interest-earning assets of $24.4 million, from $635.6 million for 2014 to $660.0 million for 2015.
Interest expense increased $64,000 when comparing the two periods due primarily to an increase in the average balance of interest-bearing liabilities of $10.7 million, from $558.2 million for 2014 to $568.9 million for 2015, and an increase in the average cost of interest-bearing liabilities from 0.64% for 2014 to 0.67% for 2015. The provision for loan losses decreased $91,000, from $303,000 for 2014 to $212,000 for 2015. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $394,000, from $4.3 million at September 30, 2014 to $3.9 million at March 31, 2015. Net charge-offs were $148,000 for the quarter ended March 31, 2015 compared to net charge-offs of $214,000 for the same period in 2014.
Noninterest income decreased $304,000 for the quarter ended March 31, 2015 as compared to the same period in 2014. The decrease was due primarily to decreases in other income and net gain on trading account securities of $271,000 and $116,000, respectively, which more than offset increases in commission income, real estate lease income and services charges on deposit accounts of $34,000, $31,000 and $26,000, respectively. The decrease in other income is due primarily to a litigation settlement of $277,000 received in the March 2014 quarter as a partial recovery of losses on commercial bond investments recognized by Community First Bank in 2008.
Noninterest expenses decreased $145,000 for the quarter ended March 31, 2015 as compared to the same period in 2014. The decrease was due primarily to decreases in professional fees and compensation and benefits expense of $186,000 and $93,000, respectively, which more than offset increases in advertising and data processing expenses of $74,000 and $54,000, respectively. The decrease in professional fees expense is due primarily to $167,000 of expense incurred in the March 2014 quarter for consulting services related to a revenue enhancement and operating expense efficiencies project.
The Company recognised income tax expense of $435,000 for the quarter ended March 31, 2015, for an effective tax rate of 22.2%, compared to income tax expense of $624,000, for an effective tax rate of 28.9%, for the same period in 2014. The decreases in income tax expense and the effective tax rate for the quarter ended March 31, 2015 were due primarily to the Company’s captive insurance subsidiary, which was formed in September 2014.
