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 June 30, 2021


	☐	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 August 6, 2021 was 2,375,296.

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30,		September 30,
(In thousands, except share and per share data)	2021		2020

ASSETS
Cash and due from banks	$	14,388	$	12,807
Interest-bearing deposits with banks		8,521		20,919
Total cash and cash equivalents		22,909		33,726

Interest-bearing time deposits		2,226		2,964
Securities available for sale, at fair value		207,628		201,965
Securities held to maturity		1,923		2,102

Loans held for sale, residential mortgage ($232,708 at fair value at June 30, 2021 and $208,493 at fair value at September 30, 2020)		242,357		263,406
Loans held for sale, single tenant net lease		17,506		—
Loans held for sale, Small Business Administration		17,511		22,119
Loans, net of allowance for loan losses of $14,642 at June 30, 2021 and $17,026 at September 30, 2020		1,065,852		1,090,063
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		19,258		17,293
Premises and equipment		27,146		24,412
Other real estate owned, held for sale		1,734		1,728
Accrued interest receivable:
Loans		4,682		4,585
Securities		2,329		1,877
Cash surrender value of life insurance		44,338		31,758
Goodwill		9,848		9,848
Core deposit intangibles		1,042		1,202
Residential mortgage loan servicing rights, at fair value		47,413		21,703
SBA loan servicing rights		4,365		3,748
Other assets		18,561		30,126

Total Assets	$	1,758,628	$	1,764,625

LIABILITIES
Deposits:
Noninterest-bearing	$	281,942	$	242,673
Interest-bearing		845,213		805,403
Total deposits		1,127,155		1,048,076

Federal Home Loan Bank borrowings		283,289		310,858
Federal Reserve PPPLF borrowings		107,829		174,834
Other borrowings		19,848		19,797
Accrued interest payable		684		683
Advance payments by borrowers for taxes and insurance		1,552		2,615
Accrued expenses and other liabilities		40,536		50,197
Total Liabilities		1,580,893		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 2,569,122 shares (2,567,842 at September 30, 2020); outstanding 2,374,796 shares (2,375,324 shares at September 30, 2020)		26		26
Additional paid-in capital		25,715		27,480
Retained earnings - substantially restricted		146,191		123,158
Accumulated other comprehensive income		10,358		11,209
Unearned stock compensation		(184)		(348)
Less treasury stock, at cost - 194,326 shares (192,518 shares at September 30, 2020)		(4,371)		(4,253)
Total First Savings Financial Group, Inc. Stockholders’ Equity		177,735		157,272
Noncontrolling interests in subsidiary		—		293
Total Equity		177,735		157,565

Total Liabilities and Equity	$	1,758,628	$	1,764,625

See notes to consolidated financial statements.

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Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(In thousands, except share and per share data)	2021		2020		2021		2020

INTEREST INCOME
Loans, including fees	$	14,347	$	12,816	$	43,632	$	36,242
Securities:
Taxable		447		502		1,350		1,591
Tax-exempt		1,181		1,196		3,548		3,233
Dividend income		161		168		436		473
Interest-bearing deposits with banks		14		37		50		395
Total interest income		16,150		14,719		49,016		41,934

INTEREST EXPENSE
Deposits		723		1,311		2,430		4,685
Federal funds purchased and repurchase agreements		—		2		—		3
Federal Home Loan Bank borrowings		780		846		2,474		2,492
Federal Reserve PPPLF borrowings		98		66		388		66
Other borrowings		320		318		976		955
Total interest expense		1,921		2,543		6,268		8,201

Net interest income		14,229		12,176		42,748		33,733
Provision (credit) for loan losses		(2,730)		2,980		(1,775)		5,190

Net interest income after provision (credit) for loan losses		16,959		9,196		44,523		28,543

NONINTEREST INCOME
Service charges on deposit accounts		343		269		1,067		1,219
ATM and interchange fees		650		491		1,795		1,518
Net gain on sales of available for sale securities and time deposits		—		—		—		7
Net unrealized gain (loss) on equity securities		(2)		9		36		(18)
Net gain on sales of loans, Small Business Administration		2,322		1,317		6,828		3,307
Mortgage banking income		14,351		43,857		91,503		68,307
Increase in cash surrender value of life insurance		179		191		539		547
Commission income		406		70		905		180
Real estate lease income		148		138		444		441
Net gain (loss) on premises and equipment		7		—		78		(9)
Other income		381		620		746		828
Total noninterest income		18,785		46,962		103,941		76,327

NONINTEREST EXPENSE
Compensation and benefits		21,330		26,896		84,673		59,623
Occupancy and equipment		2,586		2,212		7,685		6,123
Data processing		717		532		2,055		1,580
Advertising		1,349		1,861		5,712		5,104
Professional fees		1,491		924		4,360		2,073
FDIC insurance premiums		106		248		340		351
Net (gain) loss on other real estate owned		(48)		1		(44)		(1)
Other operating expenses		3,088		2,335		9,524		6,503
Total noninterest expense		30,619		35,009		114,305		81,356
Income before income taxes		5,125		21,149		34,159		23,514
Income tax expense		817		5,540		9,039		5,404
Net Income		4,308		15,609		25,120		18,110
Less: net income (loss) attributable to noncontrolling interests		—		204		402		(107)
Net Income Attributable to First Savings Financial Group, Inc.	$	4,308	$	15,405	$	24,718	$	18,217

Net income per share:
Basic	$	1.82	$	6.51	$	10.43	$	7.74
Diluted	$	1.80	$	6.51	$	10.35	$	7.66

Weighted average shares outstanding:
Basic		2,369,827		2,365,217		2,368,835		2,353,816
Diluted		2,392,981		2,366,787		2,388,745		2,377,399

Dividends per share	$	0.36	$	0.17	$	0.71	$	0.50

See notes to consolidated financial statements.

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Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(In thousands)	2021		2020		2021		2020

Net Income	$	4,308	$	15,609	$	25,120	$	18,110

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		1,488		13,509		(1,077)		4,832
Income tax expense (benefit)		(312)		(2,879)		226		(1,021)
Net of tax amount		1,176		10,630		(851)		3,811

Less: reclassification adjustment for realized gains included in net income		—		—		—		(7)
Income tax expense		—		—		—		2
Net of tax amount		—		—		—		(5)

Other Comprehensive Income (Loss)		1,176		10,630		(851)		3,806

Comprehensive Income		5,484		26,239		24,269		21,916
Less: comprehensive income (loss) attributable to noncontrolling interests		—		204		402		(107)

Comprehensive Income Attributable to First Savings Financial Group, Inc.	$	5,484	$	26,035	$	23,867	$	22,023

See notes to consolidated financial statements.

-5-

Table of Contents

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

Three Months Ended June 30, 2020:

Balances at April 1, 2020

27,436

93,425

472

		Page
Part I	Financial Information

	Item 1. Financial Statements

	Consolidated Balance Sheets as of June 30, 2021 and September 30, 2020 (unaudited)	3

	Consolidated Statements of Income for the three and nine months ended June 30, 2021 and 2020 (unaudited)	4

	Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2021 and 2020 (unaudited)	5

	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended June 30, 2021 and 2020 (unaudited)	6

	Consolidated Statements of Cash Flows for the nine months ended June 30, 2021 and 2020 (unaudited)	8

	Notes to Consolidated Financial Statements (unaudited)	9-51

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	52-63

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	64-65

	Item 4. Controls and Procedures	66

Part II	Other Information

	Item 1. Legal Proceedings	67

	Item 1A. Risk Factors	67

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	67

	Item 3. Defaults Upon Senior Securities	67

	Item 4. Mine Safety Disclosures	67

	Item 5. Other Information	68

	Item 6. Exhibits	68

Signatures		69