First Savings dissolves captive
First Savings Financial Group, the holding company for First Savings Bank, has revealed that it dissolved its captive in September as one of several actions designed to reduce inefficiencies and potential earning volatility.
In September 2023, it dissolved First Savings Insurance Risk Management, the company’s captive insurance subsidiary.
It revealed the move in its results, covering the year ended September 30, 2023. In that period, it reported net income of $8.2 million, compared to net income of $15.4 million for the year ended September 30, 2022.
Larry Myers, president and CEO, stated: “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. In addition to these repositioning measures, we focused on core banking; asset quality; selective high-quality lending; deposit growth; building the SBA lending pipeline; and improvement of liquidity, capital and interest rate sensitivity positions. 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.”