Jeffersonville-based First Savings Financial Group Inc. (Nasdaq: FSFG), the holding company for First Savings Bank, is reporting a first-quarter net loss of $627,000, compared to net income of $3.5 million for the same period a year ago.
The banking company said the decline is mostly attributable to losses in the mortgage banking segment, due to market disruptions stemming from the novel coronavirus.
“While we are disappointed with the negative impact the COVID-19 pandemic had on our financial results for the quarter, which resulted in the loss on mortgage banking, a decrease in the fair value of our SBA servicing assets and an increase in provision for loan losses, we are very pleased with the performance of the core banking operation and the resiliency of our company and staff,” said Larry Myers, president and chief executive officer.
Myers said as the healthcare crisis unfolded, the financial institution “seized opportunities” as a result of dislocation in the markets, including the purchase of municipal securities.
It is also taking part in the federal Paycheck Protection Program, having received SBA authorizations for 550 customers totaling approximately $170 million as of April 24, 2020.
“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,” said a company statement.
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