SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
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| Item 4.02 | Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review. |
On January 27, 2023, the Audit Committee of the Board of Directors of First Savings Financial Group, Inc. (the “Company”) concluded that the Company’s audited consolidated financial statements, and related notes, included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2022, should no longer be relied upon. The accounting matters underlying the Audit Committee’s conclusion primarily relate to the following:
| a. | An overstatement of other assets due to a capitalized consulting fee paid during fiscal 2022 for the evaluation of core operating systems and negotiation of the contract for such. The fee amount earned by the consultant was based on a percentage of savings that the Company is expected to recognize over the life of the newly negotiated core contract in comparison to the cost of its existing core contract over the same period. The Company recorded the amount as a prepaid consulting fee to be amortized over the life of the new core contract beginning in late fiscal 2023. However, under accounting principles generally accepted in the United States of America (“U.S. GAAP”), the amount is required to be expensed in the period incurred since no future services of the consultant are required under the agreement between the Company and consultant subsequent to the execution of the new core contract. |
| b. | An understatement of gross loans related to approximately $38.0 million in sold commercial loan participation interests, which did not qualify for sales treatment under U.S. GAAP as of September 30, 2022 due to repurchase provisions included in certain participation agreements. As a result, the transfers should have been accounted for as secured borrowings. |
| c. | The consolidated financial statements will also be restated to correct smaller differences primarily related to deferred compensation and accrued litigation expenses, as well as the income tax impact of the adjustments. |
The Company intends to file an Annual Report on Form 10-K/A for the fiscal year ended September 30, 2022, which will include the Company’s restated audited consolidated financial statements, and related notes, for the fiscal year ended September 30, 2022, on or about February 6, 2023. The Company expects the restated consolidated financial statements to disclose the following restated amounts for the fiscal year ended September 30, 2022:
| (In thousands, except per share data) | Reported | Restated |
| Loans, net of allowance for loan losses | $1,436,555 | $1,474,544 |
| Other borrowings | $50,217 | $88,206 |
| Total assets | $2,057,662 | $2,093,725 |
| Total liabilities | $1,905,039 | $1,942,160 |
| Total stockholders’ equity | $152,623 | $151,565 |
| Net income attributable to the Company | $16,444 | $15,386 |
| Net income per share, basic | $2.33 | $2.18 |
| Net income per share, diluted | $2.30 | $2.15 |
As previously disclosed in the Company’s Current Report on Form 8-K filed on December 5, 2022, Monroe Shine & Co., Inc. served as the Company’s independent registered public accounting firm for the fiscal year ended September 30, 2022 and FORVIS, LLP serves as the Company’s independent registered public accounting firm for the fiscal year ending September 30, 2023. The Company’s Audit Committee discussed the matters disclosed pursuant to this Item 4.02 with both firms.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
| 104 | Cover Page Interactive Data File (embedded within Inline XBRL document) |
This Current Report on Form 8-K contains forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts, but are statements based on the Company's current expectations. Forward-looking statements are preceded by terms such as "expects," "intends" and similar expressions. Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.
| FIRST SAVINGS FINANCIAL GROUP, INC. | ||
| Date: February 1, 2023 | By: | /s/ Anthony A. Schoen |
| Anthony A. Schoen | ||
| Chief Financial Officer | ||