UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended March 31, 2011

OR

o 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)

501 East Lewis & Clark Parkway, Indiana 47129

(Address of principal executive offices) (Zip Code)

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

Not applicable

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

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 x   No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, 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 and post such files).  Yes o  No o

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

(Check one):	Large Accelerated Filer o	Accelerated Filer o
	Non-accelerated Filer o	Smaller Reporting Company x

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

The number of shares outstanding of the registrant’s common stock as of April 30, 2011 was 2,368,945.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

		Page
Part I	Financial Information
	Item 1. Financial Statements
	Consolidated Balance Sheets as of March 31, 2011 and September 30, 2010 (unaudited)	3
	Consolidated Statements of Income for the three months and six months ended March 31, 2011 and 2010 (unaudited)	4
	Consolidated Statements of Cash Flows for the six months ended March 31, 2011 and 2010 (unaudited)	5
	Notes to Consolidated Financial Statements (unaudited)	6-29
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	30-41
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	42-43
	Item 4. Controls and Procedures	44
Part II	Other Information
	Item 1. Legal Proceedings	45
	Item 1A. Risk Factors	45
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
	Item 3. Defaults Upon Senior Securities	46
	Item 4. (Removed and Reserved)	46
	Item 5. Other Information	46
	Item 6. Exhibits	46
Signatures		47

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PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			September 30,
(In thousands, except share and per share data)	2011			2010
ASSETS
Cash and due from banks	$	5,158		$	10,184
Interest-bearing deposits with banks		3,716			1,094
Total cash and cash equivalents		8,874			11,278
Securities available for sale, at fair value		121,366			109,976
Securities held to maturity		2,940			3,929
Loans held for sale		138			1,884
Loans, net		341,059			343,615
Federal Home Loan Bank stock, at cost		4,049			4,170
Premises and equipment		10,107			9,492
Foreclosed real estate		1,345			1,331
Accrued interest receivable:
Loans		1,471			1,646
Securities		909			746
Cash surrender value of life insurance		8,383			8,234
Goodwill		5,940			5,940
Core deposit intangible		2,300			2,447
Other assets		3,908			3,754
Total Assets	$	512,789		$	508,442
LIABILITIES
Deposits:
Noninterest-bearing	$	30,716		$	28,853
Interest-bearing		338,275			337,308
Total deposits		368,991			366,161
Repurchase agreements		16,612			16,821
Borrowings from Federal Home Loan Bank		68,463			67,159
Accrued interest payable		419			427
Advance payments by borrowers for taxes and insurance		271			252
Accrued expenses and other liabilities		1,974			2,471
Total Liabilities		456,730			453,291
STOCKHOLDERS' 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 2,542,042 shares		25			25
Additional paid-in capital		24,454			24,310
Retained earnings - substantially restricted		33,957			31,889
Accumulated other comprehensive income		2,105			2,959
Unearned ESOP shares		(1,416	)		(1,501	)
Unearned stock compensation		(1,072	)		(1,202	)
Less treasury stock, at cost - 173,097 shares
(127,102 shares at September 30, 2010)		(1,994	)		(1,329	)
Total Stockholders' Equity		56,059			55,151
Total Liabilities and Stockholders' Equity	$	512,789		$	508,442

See notes to consolidated financial statements.

-3-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands, except share and per share data)	2011			2010			2011			2010
INTEREST INCOME
Loans, including fees	$	5,079		$	5,540		$	10,333		$	11,207
Securities:
Taxable		1,107			875			2,153			1,642
Tax-exempt		185			93			354			231
Dividend income		30			15			58			32
Interest-bearing deposits with banks		4			3			7			9
Total interest income		6,405			6,526			12,905			13,121
INTEREST EXPENSE
Deposits		986			1,203			2,047			2,549
Repurchase agreements		77			81			157			172
Borrowings from Federal Home Loan Bank		273			227			555			457
Total interest expense		1,336			1,511			2,759			3,178
Net interest income		5,069			5,015			10,146			9,943
Provision for loan losses		287			588			639			946
Net interest income after provision for loan losses		4,782			4,427			9,507			8,997
NONINTEREST INCOME
Service charges on deposit accounts		313			368			674			779
Net gain on sales of securities available for sale		-			-			68			-
Unrealized gain (loss) on derivative contract		(12	)		(133	)		33			(72	)
Net gain on sales of mortgage loans		33			34			139			43
Increase in cash surrender value of life insurance		69			53			149			110
Commission income		53			42			86			70
Other income		174			173			335			332
Total noninterest income		630			537			1,484			1,262
NONINTEREST EXPENSE
Compensation and benefits		2,057			1,894			4,257			4,016
Occupancy and equipment		453			552			898			1,084
Data processing		270			497			555			733
Advertising		70			68			162			161
Professional fees		153			210			273			324
FDIC insurance premiums		149			132			283			282
Net (gain) loss on foreclosed real estate		190			(5	)		232			17
Other operating expenses		691			695			1,411			1,391
Total noninterest expense		4,033			4,043			8,071			8,008
Income before income taxes		1,379			921			2,920			2,251
Income tax expense		409			221			866			659
Net Income	$	970		$	700		$	2,054		$	1,592
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during the period	$	777		$	689		$	(809	)	$	891
Less: reclassification adjustment		-			-			(45	)		-
Other comprehensive income (loss)		777			689			(854	)		891
Comprehensive Income	$	1,747		$	1,389		$	1,200		$	2,483
Net Income per common share, basic	$	0.46		$	0.31		$	0.96		$	0.69
Net Income per common share, diluted	$	0.44		$	0.31		$	0.94		$	0.69
Dividends per common share	$	-		$	-		$	-		$	0.08

See notes to consolidated financial statements.

-4-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	March 31,
(In thousands)	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	2,054		$	1,592
Adjustments to reconcile net income to net cash provided
by operating activities:
Provision for loan losses		639			946
Depreciation and amortization		435			581
Amortization of premiums and accretion of discounts on securities, net		(83	)		(6	)
Mortgage loans originated for sale		(8,296	)		(2,783	)
Proceeds on sale of mortgage loans		10,181			3,138
Gain on sale of mortgage loans		(139	)		(43	)
Net realized and unrealized (gain) loss on foreclosed real estate		183			(101	)
Net gain on sales of securities available for sale		(68	)		-
Unrealized (gain) loss on derivative contract		(33	)		72
Increase in cash surrender value of life insurance		(149	)		(110	)
Deferred income taxes		192			(2,136	)
ESOP and stock compensation expense		357			233
Decrease in accrued interest receivable		12			73
Decrease in accrued interest payable		(8	)		(17	)
Change in other assets and liabilities, net		(348	)		1,305
Net Cash Provided By Operating Activities		4,929			2,744
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities available for sale		(26,377	)		(33,508	)
Proceeds from sales of securities available for sale		3,914			3,666
Proceeds from maturities of securities available for sale		4,156			14,573
Principal collected on mortgage-backed securities		6,756			6,543
Net (increase) decrease in loans		1,257			(1,831	)
Proceeds from redemption of Federal Home Loan Bank stock		121			-
Investment in cash surrender value of life insurance		-			(1,200	)
Proceeds from sale of foreclosed real estate		464			736
Purchase of premises and equipment		(903	)		(219	)
Net Cash Used In Investing Activities		(10,612	)		(11,240	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits		2,830			11,241
Net decrease in federal funds purchased		-			(1,180	)
Net decrease in repurchase agreements		(209	)		(209	)
Increase (decrease) in Federal Home Loan Bank line of credit		(1,633	)		227
Proceeds from Federal Home Loan Bank advances		55,000			54,439
Repayment of Federal Home Loan Bank advances		(52,063	)		(51,644	)
Net increase (decrease) in advance payments by borrowers
for taxes and insurance		19			(140	)
Purchase of treasury stock		(665	)		(1,329	)
Dividends paid		-			(193	)
Net Cash Provided By Financing Activities		3,279			11,212
Net Increase (Decrease) in Cash and Cash Equivalents		(2,404	)		2,716
Cash and cash equivalents at beginning of period		11,278			10,404
Cash and Cash Equivalents at End of Period	$	8,874		$	13,120

See notes to consolidated financial statements.

-5-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.           Presentation of Interim Information

First Savings Financial Group, Inc. (“Company”), an Indiana corporation, was incorporated in May 2008 to serve as the holding company for First Savings Bank, F.S.B. (“Bank”), a federally-chartered savings bank.  On October 6, 2008, in accordance with a Plan of Conversion adopted by its board of directors and approved by its members, the Bank converted from a mutual savings bank to a stock savings bank and became the wholly-owned subsidiary of the Company.  In connection with the conversion, the Company issued an aggregate of 2,542,042 shares of common stock at an offering price of $10.00 per share.  In addition, in connection with the conversion, First Savings Charitable Foundation was formed, to which the Company contributed 110,000 shares of common stock and $100,000 in cash.  The Company’s common stock began trading on the Nasdaq Capital Market on October 7, 2008 under the symbol “FSFG”.

The Bank has three-wholly owned subsidiaries: First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio, Southern Indiana Financial Corporation, which sells non-deposit investment products, and FFCC, Inc., which is currently inactive.

In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary to present fairly the financial position as of March 31, 2011, the results of operations for the three- and six-month periods ended March 31, 2011 and 2010 and the cash flows for the six-month periods ended March 31, 2011 and 2010.  All of these adjustments are of a normal, recurring nature.  Such adjustments are the only adjustments included in the unaudited consolidated financial statements.  Interim results are not necessarily indicative of results for a full year.  

The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial statements and are presented as permitted by the instructions to Form 10-Q.  Accordingly, they do not contain certain information included in the Company’s audited consolidated financial statements and related notes for the year ended September 30, 2010 included in the Form 10-K.

The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries.  All material intercompany balances and transactions have been eliminated in consolidation.

-6-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2.           Investment Securities

Investment securities have been classified according to management’s intent.  The amortized cost of securities and their fair values are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In thousands)
March 31, 2011:
Securities available for sale:
Agency bonds and notes	$	33,779	$	38	$	382	$	33,435
Agency mortgage-backed		10,685		256		42		10,899
Agency CMO		22,547		188		86		22,649
Privately-issued CMO		10,124		3,061		67		13,118
Municipal		40,786		881		491		41,176
Subtotal – debt securities		117,921		4,424		1,068		121,277
Equity securities		-		89		-		89
Total securities available for sale	$	117,921	$	4,513	$	1,068	$	121,366
Securities held to maturity:
Agency mortgage-backed	$	2,940	$	182	$	-	$	3,122
Total securities held to maturity	$	2,940	$	182	$	-	$	3,122
September 30, 2010:
Securities available for sale:
Agency bonds and notes	$	25,510	$	196	$	1	$	25,705
Agency mortgage-backed		13,944		226		29		14,141
Agency CMO		22,325		224		61		22,488
Privately-issued CMO		10,342		2,418		72		12,688
Municipal		33,109		1,920		152		34,877
Subtotal – debt securities		105,230		4,984		315		109,899
Equity securities		-		77		-		77
Total securities available for sale	$	105,230	$	5,061	$	315	$	109,976
Securities held to maturity:
Agency mortgage-backed	$	3,625	$	211	$	-	$	3,836
Municipal		304		4		-		308
Total securities held to maturity	$	3,929	$	215	$	-	$	4,144

-7-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations (CMO) include securities issued by the Government National Mortgage Association (GNMA), a U.S. government agency, and the Federal National Mortgage Association (FNMA), the Federal Home Loan Mortgage Corporation (FHLMC) and the Federal Home Loan Bank (FHLB), which are government-sponsored enterprises.  Privately-issued CMO are complex securities issued by special-purpose entities that are generally collateralized by first position residential mortgage loans and first position residential home equity loans.

The amortized cost and fair value of investment securities as of March 31, 2011 by contractual maturity are shown below.  Expected maturities of mortgage-backed securities and CMO may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty.

	Available for Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In thousands)
Due within one year	$	392	$	393	$	-	$	-
Due after one year through five years		3,672		3,684		-		-
Due after five years through ten years		8,433		8,611		-		-
Due after ten years		62,068		61,923		-		-
		74,565		74,611		-		-
Equity securities		-		89		-		-
CMO		32,671		35,767		-		-
Mortgage-backed securities		10,685		10,899		2,940		3,122
	$	117,921	$	121,366	$	2,940	$	3,122

-8-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Information pertaining to available for sale securities with gross unrealized losses at March 31, 2011, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, follows:

	Number of Investment Positions		Fair Value		Gross Unrealized Losses
	(Dollars in thousands)
Securities available for sale:
Continuous loss position less than twelve months:
Agency bonds and notes		17	$	24,697	$	382
Agency mortgage-backed		7		5,324		42
Agency CMO		4		4,675		86
Privately-issued CMO		2		845		10
Municipal bonds		18		11,076		362
		48		46,617		882
Continuous loss position more than twelve months:
Privately-issued CMO		3		193		57
Municipal bonds		1		1,821		129
		4		2,014		186
Total securities available for sale		52	$	48,631	$	1,068

At March 31, 2011, the Company did not have any securities held to maturity with an unrealized loss.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

The total available for sale debt securities in loss positions at March 31, 2011 have depreciated approximately 2.2% from the Bank’s amortized cost basis and had a weighted-average yield of 3.84% and a weighted-average coupon rate of 4.25%.

U.S. government agency debt securities, including mortgage-backed securities and CMO securities, and municipal bonds in loss positions at March 31, 2011 had depreciated approximately 2.1% from the amortized cost basis.  All of the U.S. government agency and municipal securities are issued by U.S. government agencies, government-sponsored enterprises and municipal governments, or are secured by first mortgage loans and municipal project revenues.

-9-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The unrealized losses on U.S. government agency and municipal securities relate principally to current interest rates for similar types of securities.  In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.  As management has the ability to hold debt securities to maturity, or for the foreseeable future if classified as available for sale, no declines are deemed to be other-than-temporary.

At March 31, 2011, the five privately-issued CMO securities in loss positions had depreciated approximately 6.1% from the amortized cost basis and include securities collateralized by home equity lines of credit or other mortgage-related loan products.  All such investments except two securities with fair values totaling $750,000 and unrealized losses of $47,000 at March 31, 2011 continued to be rated by a nationally recognized statistical rating organization as investment grade assets.

The Company evaluates the existence of a potential credit loss component related to the decline in fair value of the privately-issued CMO portfolio each quarter using an independent third party analysis.  At March 31, 2011, the Company held nineteen privately-issued CMO securities with an aggregate amortized cost of $5.5 million and fair value of $7.4 million that have been downgraded to a substandard regulatory classification due to a downgrade of the security’s credit quality rating by various rating agencies.  Based on the independent third party analysis, the Bank expects to collect the contractual principal and interest cash flows for these securities and, as a result, no other-than-temporary impairment has been recognized on the privately-issued CMO portfolio.  While management does not anticipate a credit-related impairment loss at March 31, 2011, additional deterioration in market and economic conditions may have an adverse impact on the credit quality in the future.

During the six months ended March 31, 2011 and three months ended December 31, 2010, the Company realized gross gains on sales of available for sale municipal securities of $68,000.  The Company had no realized gains on sales of available for sale securities during the three months ended March 31, 2011.

-10-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3.           Loans and Allowance for Loan Losses

Loans at March 31, 2011 and September 30, 2010 consisted of the following:

	March 31,			September 30,
	2011			2010
	(In thousands)
Real estate mortgage:
1-4 family residential	$	166,411		$	172,007
Multi-family residential		23,382			20,360
Commercial		59,989			53,869
Residential construction		14,944			15,867
Commercial construction		9,044			9,851
Land and land development		9,729			9,076
Commercial business loans		29,509			30,905
Consumer:
Home equity loans		15,715			16,335
Auto loans		11,165			13,405
Other consumer loans		6,474			7,030
Gross loans		346,362			348,705
Deferred loan origination fees and costs, net		676			778
Undisbursed portion of loans in process		(1,822	)		(2,057	)
Allowance for loan losses		(4,157	)		(3,811	)
Loans, net	$	341,059		$	343,615

During the six-month period ended March 31, 2011, there was no significant change in the Company’s lending activities or methodology used to estimate the allowance for loan losses as disclosed in the Company’s Annual Report on Form 10-K for the year ended September 30, 2010.

-11-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table provides the components of the recorded investment in loans for each portfolio class as of March 31, 2011:

	Residential Real Estate		Commercial Real Estate			Multifamily			Construction		Land & Land Development			Commercial Business			Consumer		Total
	(In thousands)
Recorded Investment in Loans:
Principal loan balance	$	166,411	$	59,989		$	23,382		$	22,166	$	9,729		$	29,509		$	33,354	$	344,540
Accrued interest receivable		686		266			89			99		40			160			131		1,471
Net deferred loan origination fees and costs		659		(19	)		(5	)		46		(13	)		(33	)		41		676
Recorded investment in loans	$	167,756	$	60,236		$	23,466		$	22,311	$	9,756		$	29,636		$	33,526	$	346,687
Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	3,081	$	1,883		$	32		$	763	$	397		$	145		$	351	$	6,652
Collectively evaluated for impairment		163,911		57,792			23,434			21,499		9,359			29,491			33,133		338,619
Acquired with deteriorated credit quality		764		561			-			49		-			-			42		1,416
Ending balance	$	167,756	$	60,236		$	23,466		$	22,311	$	9,756		$	29,636		$	33,526	$	346,687

-12-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

An analysis of the allowance for loan losses as of and for the three and six months ended March 31, 2011 is as follows:

	Residential Real Estate			Commercial Real Estate			Multifamily		Construction			Land & Land Development			Commercial Business			Consumer			Unallocated		Total
	(In thousands)
Changes in Allowance for Loan Losses for the three-months ended March 31, 2011:
Beginning balance	$	1,203		$	896		$	550	$	133		$	29		$	787		$	361		$	-	$	3,959
Provisions		44			(16	)		4		12			8			223			12			-		287
Charge-offs		(24	)		-			-		-			-			(53	)		(42	)		-		(119	)
Recoveries		13			-			-		-			-			4			13			-		30
Ending balance	$	1,236		$	880		$	554	$	145		$	37		$	961		$	344		$	-	$	4,157
Changes in Allowance for Loan Losses for the six-months ended March 31, 2011:
Beginning balance	$	1,242		$	600		$	369	$	218		$	62		$	891		$	429		$	-	$	3,811
Provisions		218			285			185		(65	)		(25	)		62			(21	)		-		639
Charge-offs		(237	)		(5	)		-		(8	)		-			(53	)		(94	)		-		(397	)
Recoveries		13			-			-		-			-			61			30			-		104
Ending balance	$	1,236		$	880		$	554	$	145		$	37		$	961		$	344		$	-	$	4,157
Ending Allowance Balance Attributable to Loans:
Individually evaluated for impairment	$	70		$	249		$	-	$	21		$	-		$	-		$	31		$	-	$	371
Collectively evaluated for impairment		1,166			631			554		124			37			961			313			-		3,786
Acquired with deteriorated credit quality		-			-			-		-			-			-			-			-		-
Ending balance	$	1,236		$	880		$	554	$	145		$	37		$	961		$	344		$	-	$	4,157

-13-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents impaired loans individually evaluated for impairment as of and for the three and six months ended March 31, 2011.

	At March 31, 2011						Three Months Ended March 31, 2011						Six Months Ended March 31, 2011
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Recognized Cash-Method		Average Recorded Investment		Interest Income Recognized		Interest Recognized Cash-Method
	(In thousands)
Loans with no related allowance recorded:
Residential real estate	$	2,730	$	2,708	$	-	$	2,533	$	7	$	3	$	2,475	$	16	$	13
Commercial real estate		1,406		1,407		-		1,196		-		1		1,187		2		1
Multifamily		32		31		-		16		1		-		11		1		-
Construction		742		735		-		548		4		1		572		5		1
Land and land development		397		397		-		397		-		-		265		-		-
Commercial business		145		143		-		154		2		1		217		3		2
Consumer		256		256		-		235		1		-		247		2		1
	$	5,708	$	5,677	$	-	$	5,079	$	15	$	6	$	4,974	$	29	$	18
Loans with an allowance recorded:
Residential real estate	$	351	$	350	$	70	$	345	$	-	$	-	$	552	$	-	$	-
Commercial real estate		477		477		249		486		-		-		324		-		-
Multifamily		-		-		-		-		-		-		-		-		-
Construction		21		21		21		140		-		-		140		-		-
Land and land development		-		-		-		-		-		-		-		-		-
Commercial business		-		-		-		-		-		-		-		-		-
Consumer		95		94		31		98		-		-		97		-		-
	$	944	$	942	$	371	$	1,069	$	-	$	-	$	1,113	$	-	$	-
Total:
Residential real estate	$	3,081	$	3,058	$	70	$	2,878	$	7	$	3	$	3,027	$	16	$	13
Commercial real estate		1,883		1,884		249		1,682		-		1		1,511		2		1
Multifamily		32		31		-		16		1		-		11		1		-
Construction		763		756		21		688		4		1		712		5		1
Land and land development		397		397		-		397		-		-		265		-		-
Commercial business		145		143		- -		154		2		1		217		3		2
Consumer		351		350		31		333		1		-		344		2		1
	$	6,652	$	6,619	$	371	$	6,148	$	15	$	6	$	6,087	$	29	$	18

-14-

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Nonperforming loans consists of nonaccrual loans and loans over 90 days past due and still accruing interest.  The following table presents the recorded investment in nonperforming loans by class of loans at March 31, 2011:

	Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans
	(In thousands)
Residential real estate	$	2,535	$	546	$	3,081
Commercial real estate		1,883		-		1,883
Multifamily		-		32		32
Construction		496		267		763
Land and land development		397		-		397
Commercial business		44		101		145
Consumer		295		56		351
Total	$	5,650	$	1,002	$	6,652

The following table presents the aging of the recorded investment in past due loans at March 31, 2011 by class of loans:

	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Residential real estate	$	7,205	$	120	$	2,147	$	9,472	$	158,284	$	167,756
Commercial real estate		1,078		141		1,574		2,793		57,443		60,236
Multifamily		-		-		32		32		23,434		23,466
Construction		54		-		490		544		21,767		22,311
Land and land development		-		-		397		397		9,359		9,756
Commercial business		49		23		115		187		29,449		29,636
Consumer		542		21		134		697		32,829		33,526
Total