The Bank Slate


First Savings in Ind. selling MSR rights among many changes

First Savings Financial Group in Jeffersonville, Ind., is selling or closing several businesses.

The $2.3 billion-asset company said in a press release that it agreed in September to sell its residential mortgage servicing rights portfolio and dissolve First Savings Insurance Risk Management. The MSR sale is expected to close on Nov. 30.

The company decided in October to shutter its national originate-to-sell mortgage operation by the end of the year.

“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,” Larry Myers, First Savings’ president and CEO, said in the release.

“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,” he added.

The company reported a net loss of $747,000 in its fiscal fourth quarter, which included a $1.3 million charge tied to converting its data processing system. Net income for the fiscal year that ended Sept. 30 fell by 46% from a year earlier, to $8.2 million. 

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