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 March 31, 2021

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 May 5, 2021 was 2,375,027.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

		Page
Part I	Financial Information
	Item 1. Financial Statements
	Consolidated Balance Sheets as of March 31, 2021 and September 30, 2020 (unaudited)	3
	Consolidated Statements of Income for the three and six months ended March 31, 2021 and 2020 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended March 31, 2021 and 2020 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended March 31, 2021 and 2020 (unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended March 31, 2021 and 2020 (unaudited)	8
	Notes to Consolidated Financial Statements (unaudited)	9
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	53
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	65
	Item 4. Controls and Procedures	67
Part II	Other Information
	Item 1. Legal Proceedings	68
	Item 1A. Risk Factors	68
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	68
	Item 3. Defaults Upon Senior Securities	68
	Item 4. Mine Safety Disclosures	68
	Item 5. Other Information	69
	Item 6. Exhibits	69
Signatures		70

-2-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,		September 30,
(In thousands, except share and per share data)	2021		2020
ASSETS
Cash and due from banks	$	13,040	$	12,807
Interest-bearing deposits with banks		17,797		20,919
Total cash and cash equivalents		30,837		33,726
Interest-bearing time deposits		2,474		2,964
Securities available for sale, at fair value		205,374		201,965
Securities held to maturity		1,957		2,102
Loans held for sale, residential mortgage ($147,248 at fair value at March 31, 2021 and $208,493 at fair value at September 30, 2020)		190,437		263,406
Loans held for sale, Small Business Administration		16,704		22,119
Loans, net of allowance for loan losses of $17,419 at March 31, 2021 and $17,026 at September 30, 2020		1,128,348		1,090,063
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		19,258		17,293
Premises and equipment		25,602		24,412
Other real estate owned, held for sale		2,043		1,728
Accrued interest receivable:
Loans		5,034		4,585
Securities		1,843		1,877
Cash surrender value of life insurance		32,160		31,758
Goodwill		9,848		9,848
Core deposit intangibles		1,095		1,202
Residential mortgage loan servicing rights, at fair value		45,245		21,703
SBA loan servicing rights		4,122		3,748
Other assets		28,228		30,126
Total Assets	$	1,750,609	$	1,764,625
LIABILITIES
Deposits:
Noninterest-bearing	$	284,742	$	242,673
Interest-bearing		810,754		805,403
Total deposits		1,095,496		1,048,076
Federal Home Loan Bank borrowings		289,237		310,858
Federal Reserve PPPLF borrowings		128,494		174,834
Other borrowings		19,831		19,797
Accrued interest payable		866		683
Advance payments by borrowers for taxes and insurance		1,488		2,615
Accrued expenses and other liabilities		42,157		50,197
Total Liabilities		1,577,569		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 2,568,942 shares (2,567,842 at September 30, 2020 ); outstanding 2,375,027 shares (2,375,324 shares at September 30, 2020)		26		26
Additional paid-in capital		25,682		27,480
Retained earnings - substantially restricted		142,738		123,158
Accumulated other comprehensive income		9,182		11,209
Unearned stock compensation		(245)		(348)
Less treasury stock, at cost - 193,915 shares (192,518 shares at September 30, 2020)		(4,343)		(4,253)
Total First Savings Financial Group, Inc. Stockholders' Equity		173,040		157,272
Noncontrolling interests in subsidiary		—		293
Total Equity		173,040		157,565
Total Liabilities and Equity	$	1,750,609	$	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				Six Months Ended
	March 31,				March 31,
(In thousands, except share and per share data)	2021		2020		2021		2020
INTEREST INCOME
Loans, including fees	$	15,047	$	11,719	$	29,285	$	23,426
Securities:
Taxable		432		504		903		1,089
Tax-exempt		1,176		1,027		2,367		2,037
Dividend income		167		151		275		305
Interest-bearing deposits with banks		18		153		36		358
Total interest income		16,840		13,554		32,866		27,215
INTEREST EXPENSE
Deposits		771		1,625		1,707		3,374
Federal funds purchased and repurchase agreements		—		1		—		1
Federal Home Loan Bank borrowings		833		838		1,694		1,646
Federal Reserve PPPLF borrowings		137		—		290		—
Other borrowings		319		319		656		637
Total interest expense		2,060		2,783		4,347		5,658
Net interest income		14,780		10,771		28,519		21,557
Provision for loan losses		287		1,705		955		2,210
Net interest income after provision for loan losses		14,493		9,066		27,564		19,347
NONINTEREST INCOME
Service charges on deposit accounts		328		441		724		950
ATM and interchange fees		513		524		1,145		1,027
Net gain on sales of available for sale securities and time deposits		—		7		—		7
Net unrealized gain (loss) on equity securities		27		(29)		38		(27)
Net gain on sales of loans, Small Business Administration		3,239		1,229		4,506		1,990
Mortgage banking income		32,398		8,411		74,698		24,334
Increase in cash surrender value of life insurance		174		194		360		356
Commission income		365		83		499		110
Real estate lease income		149		152		296		303
Net gain (loss) on premises and equipment		71		(5)		71		(9)
Other income		1,709		126		2,819		324
Total noninterest income		38,973		11,133		85,156		29,365
NONINTEREST EXPENSE
Compensation and benefits		29,481		14,907		63,343		32,727
Occupancy and equipment		2,514		1,989		5,099		3,911
Data processing		549		546		1,338		1,048
Advertising		2,052		1,777		4,363		3,243
Professional fees		1,595		522		2,869		1,149
FDIC insurance premiums		94		99		234		103
Net (gain) loss on other real estate owned		1		(7)		4		(2)
Other operating expenses		2,998		2,242		6,436		4,168
Total noninterest expense		39,284		22,075		83,686		46,347
Income (Loss) before income taxes		14,182		(1,876)		29,034		2,365
Income tax expense (benefit)		3,695		(774)		8,222		(136)
Net Income (Loss)		10,487		(1,102)		20,812		2,501
Less: net income (loss) attributable to noncontrolling interests		—		(475)		402		(311)
Net Income (Loss) Attributable to First Savings Financial Group, Inc.	$	10,487	$	(627)	$	20,410	$	2,812
Net income (loss) per share:
Basic	$	4.43	$	(0.27)	$	8.62	$	1.20
Diluted	$	4.39	$	(0.26)	$	8.55	$	1.18
Weighted average shares outstanding:
Basic		2,369,642		2,355,750		2,368,338		2,348,145
Diluted		2,388,063		2,379,901		2,386,375		2,381,356
Dividends per share	$	0.18	$	0.17	$	0.35	$	0.33

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				Six Months Ended
	March 31,				March 31,
(In thousands)	2021		2020		2021		2020
Net Income (Loss)	$	10,487	$	(1,102)	$	20,812	$	2,501
OTHER COMPREHENSIVE LOSS, NET OF TAX
Unrealized losses on securities available for sale:
Unrealized holding losses arising during the period		(3,427)		(7,929)		(2,565)		(8,677)
Income tax benefit		720		1,694		538		1,858
Net of tax amount		(2,707)		(6,235)		(2,027)		(6,819)
Less: reclassification adjustment for realized gains included in net income		—		(7)		—		(7)
Income tax expense		—		2		—		2
Net of tax amount		—		(5)		—		(5)
Other Comprehensive Loss		(2,707)		(6,240)		(2,027)		(6,824)
Comprehensive Income (Loss)		7,780		(7,342)		18,785		(4,323)
Less: comprehensive income (loss) attributable to noncontrolling interests		—		(475)		402		(311)
Comprehensive Income (Loss) Attributable to First Savings Financial Group, Inc.	$	7,780	$	(6,867)	$	18,383	$	(4,012)

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