UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                                 to                             

Commission File No. 1-34155

First Savings Financial Group, Inc.

(Exact name of registrant as specified in its charter)

Indiana	37-1567871
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

702 North Shore Drive, Suite 300, Jeffersonville, Indiana 47130

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code 1-812-283-0724

(Former name, former address and former fiscal year, if changed since last report)

Securities Registered pursuant to Section 12(b) of the Act:

Common stock, $0.01 par value per share	FSFG	The NASDAQ Stock Market, LLC
(Title of each class)	(Trading Symbol)	(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ◻	Accelerated Filer ◻
Non-accelerated Filer ⌧	Smaller Reporting Company ⌧
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant’s common stock as of February 2, 2021 was 2,374,927.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

		Page
Part I	Financial Information
	Item 1. Financial Statements
	Consolidated Balance Sheets as of December 31, 2020 and September 30, 2020 (unaudited)	3
	Consolidated Statements of Income for the three months ended December 31, 2020 and 2019 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the three months ended December 31, 2020 and 2019 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three months ended December 31, 2020 and 2019 (unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended December 31, 2020 and 2019 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	47
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	55
	Item 4. Controls and Procedures	57
Part II	Other Information
	Item 1. Legal Proceedings	58
	Item 1A. Risk Factors	58
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	58
	Item 3. Defaults Upon Senior Securities	58
	Item 4. Mine Safety Disclosures	58
	Item 5. Other Information	59
	Item 6. Exhibits	59
Signatures		60

-2-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	December 31,		September 30,
(In thousands, except share and per share data)	2020		2020
ASSETS
Cash and due from banks	$	16,042	$	12,807
Interest-bearing deposits with banks		19,350		20,919
Total cash and cash equivalents		35,392		33,726
Interest-bearing time deposits		2,723		2,964
Securities available for sale, at fair value		203,593		201,965
Securities held to maturity		2,068		2,102
Loans held for sale, residential mortgage ($267,577 at fair value at December 31, 2020 and $208,493 at fair value at September 30, 2020)		330,178		263,406
Loans held for sale, Small Business Administration		27,064		22,119
Loans, net of allowance for loan losses of $17,124 at December 31, 2020 and $17,026 at September 30, 2020		1,114,708		1,090,063
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		19,310		17,293
Premises and equipment		25,018		24,412
Other real estate owned, held for sale		2,043		1,728
Accrued interest receivable:
Loans		5,139		4,585
Securities		2,284		1,877
Cash surrender value of life insurance		31,944		31,758
Goodwill		9,848		9,848
Core deposit intangibles		1,149		1,202
Residential mortgage loan servicing rights, at fair value		31,510		21,703
SBA loan servicing rights		3,722		3,748
Other assets		25,218		30,126
Total Assets	$	1,872,911	$	1,764,625
LIABILITIES
Deposits:
Noninterest-bearing	$	272,241	$	242,673
Interest-bearing		849,079		805,403
Total deposits		1,121,320		1,048,076
Federal Home Loan Bank borrowings		340,092		310,858
Federal Reserve PPPLF borrowings		172,772		174,834
Other borrowings		19,814		19,797
Accrued interest payable		795		683
Advance payments by borrowers for taxes and insurance		1,600		2,615
Accrued expenses and other liabilities		50,773		50,197
Total Liabilities		1,707,166		1,607,060
EQUITY
Preferred stock of $.01 par value per share; authorized 1,000,000 shares; none issued		—		—
Common stock of $.01 par value per share; authorized 20,000,000 shares; issued 2,568,842 shares (2,567,842 at September 30, 2020 ); outstanding 2,374,927 shares (2,375,324 shares at September 30, 2020)		26		26
Additional paid-in capital		25,737		27,480
Retained earnings - substantially restricted		132,680		123,158
Accumulated other comprehensive income		11,889		11,209
Unearned stock compensation		(292)		(348)
Less treasury stock, at cost - 193,915 shares (192,518 shares at September 30, 2020)		(4,295)		(4,253)
Total First Savings Financial Group, Inc. Stockholders' Equity		165,745		157,272
Noncontrolling interests in subsidiary		—		293
Total Equity		165,745		157,565
Total Liabilities and Equity	$	1,872,911	$	1,764,625

See notes to consolidated financial statements.

-3-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
	December 31,
(In thousands, except share and per share data)	2020		2019
INTEREST INCOME
Loans, including fees	$	14,238	$	11,707
Securities:
Taxable		471		585
Tax-exempt		1,191		1,010
Dividend income		108		154
Interest-bearing deposits with banks		18		205
Total interest income		16,026		13,661
INTEREST EXPENSE
Deposits		936		1,749
Federal Home Loan Bank borrowings		861		808
Federal Reserve PPPLF borrowings		153		—
Other borrowings		337		318
Total interest expense		2,287		2,875
Net interest income		13,739		10,786
Provision for loan losses		668		505
Net interest income after provision for loan losses		13,071		10,281
NONINTEREST INCOME
Service charges on deposit accounts		396		509
ATM and interchange fees		632		503
Net unrealized gain on equity securities		11		2
Net gain on sales of loans, Small Business Administration		1,267		761
Mortgage banking income		42,300		15,923
Increase in cash surrender value of life insurance		186		162
Commission income		134		27
Real estate lease income		147		151
Net loss on premises and equipment		—		(4)
Other income		1,110		198
Total noninterest income		46,183		18,232
NONINTEREST EXPENSE
Compensation and benefits		33,862		17,820
Occupancy and equipment		2,585		1,922
Data processing		789		502
Advertising		2,311		1,466
Professional fees		1,274		627
FDIC insurance premiums		140		4
Net loss on other real estate owned		3		5
Other operating expenses		3,438		1,926
Total noninterest expense		44,402		24,272
Income before income taxes		14,852		4,241
Income tax expense		4,527		638
Net Income		10,325		3,603
Less: net income attributable to noncontrolling interests		402		164
Net Income Attributable to First Savings Financial Group, Inc.	$	9,923	$	3,439
Net income per share:
Basic	$	4.19	$	1.47
Diluted	$	4.16	$	1.44
Weighted average shares outstanding:
Basic		2,367,061		2,340,619
Diluted		2,384,702		2,382,754
Dividends per share	$	0.17	$	0.16

See notes to consolidated financial statements.

-4-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended
	December 31,
(In thousands)	2020		2019
Net Income	$	10,325	$	3,603
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		861		(747)
Income tax (expense) benefit		(181)		163
Net of tax amount		680		(584)
Other Comprehensive Income (Loss)		680		(584)
Comprehensive Income		11,005		3,019
Less: comprehensive income attributable to noncontrolling interests		402		164
Comprehensive Income Attributable to First Savings Financial Group, Inc.	$	10,603	$	2,855

See notes to consolidated financial statements.

-5-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

							Accumulated
							Other		Unearned				Noncontrolling
	Common		Additional		Retained		Comprehensive		Stock		Treasury		Interests in
(In thousands, except share and per share data)	Stock		Paid-in Capital		Earnings		Income		Compensation		Stock		Subsidiary		Total
Balances at October 1, 2019	$	26	$	27,494	$	91,228	$	7,296	$	(446)	$	(4,545)	$	204	$	121,257
Cumulative effect adjustment, adoption of ASU 2016-02		—		—		166		—		—		—		—		166
Net income		—		—		3,439		—		—		—		164		3,603
Other comprehensive loss		—		—		—		(584)		—		—		—		(584)
Common stock dividends - $0.16 per share		—		—		(378)		—		—		—		—		(378)
Restricted stock grants - 1,436 shares		—		95		—		—		(95)		—		—		—
Stock compensation expense		—		21		—		—		46		—		—		67
Stock option exercises - 6,000 shares		—		(28)		—		—		—		128		—		100
Purchase of 796 treasury shares		—		—		—		—		—		(53)		—		(53)
Balances at December 31, 2019	$	26	$	27,582	$	94,455	$	6,712	$	(495)	$	(4,470)	$	368	$	124,178
Balances at October 1, 2020	$	26	$	27,480	$	123,158	$	11,209	$	(348)	$	(4,253)	$	293	$	157,565
Net income		—		—		9,923		—		—		—		402		10,325
Acquisition of minority interests in Q2		—		(1,757)		—		—		—		—		(695)		(2,452)
Other comprehensive income		—		—		—		680		—		—		—		680
Common stock dividends - $0.17 per share		—		—		(401)		—		—		—		—		(401)
Restricted stock forfeitures - 200 shares		—		(8)		—		—		8		—		—		—