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 June 30, 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 x  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 July 31, 2011 was 2,365,209.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

Part I	Financial Information	Page
	Item 1.  Financial Statements
	Consolidated Balance Sheets as of June 30, 2011 and September 30, 2010 (unaudited)	3
	Consolidated Statements of Income for the three months and nine months ended June 30, 2011 and 2010 (unaudited)	4
	Consolidated Statements of Cash Flows for the nine months ended June 30, 2011 and 2010 (unaudited)	5
	Notes to Consolidated Financial Statements (unaudited)	6-30
	Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	31-42
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk	43-44
	Item 4.  Controls and Procedures	45
Part II	Other Information
	Item 1.  Legal Proceedings	46
	Item 1A.  Risk Factors	46
	Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	46
	Item 3.  Defaults Upon Senior Securities	47
	Item 4.  (Removed and Reserved)	47
	Item 5.  Other Information	47
	Item 6.  Exhibits	47
Signatures		48

- 2 -

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,			September 30,
(In thousands, except share and per share data)	2011			2010
ASSETS
Cash and due from banks	$	6,647		$	10,184
Interest-bearing deposits with banks		2,289			1,094
Total cash and cash equivalents		8,936			11,278
Securities available for sale, at fair value		121,751			109,976
Securities held to maturity		2,667			3,929
Loans held for sale		-			1,884
Loans, net		352,710			343,615
Federal Home Loan Bank stock, at cost		4,400			4,170
Premises and equipment		10,180			9,492
Foreclosed real estate		948			1,331
Accrued interest receivable:
Loans		1,506			1,646
Securities		1,070			746
Cash surrender value of life insurance		8,464			8,234
Goodwill		5,940			5,940
Core deposit intangible		2,227			2,447
Other assets		2,795			3,754
Total Assets	$	523,594		$	508,442
LIABILITIES
Deposits:
Noninterest-bearing	$	30,725		$	28,853
Interest-bearing		346,584			337,308
Total deposits		377,309			366,161
Repurchase agreements		16,507			16,821
Borrowings from Federal Home Loan Bank		69,411			67,159
Accrued interest payable		413			427
Advance payments by borrowers for taxes and insurance		201			252
Accrued expenses and other liabilities		1,763			2,471
Total Liabilities		465,604			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		24,513			24,310
Retained earnings - substantially restricted		35,080			31,889
Accumulated other comprehensive income		2,814			2,959
Unearned ESOP shares		(1,380	)		(1,501	)
Unearned stock compensation		(1,007	)		(1,202	)
Less treasury stock, at cost - 176,833 shares
(127,102 shares at September 30, 2010)		(2,055	)		(1,329	)
Total Stockholders' Equity		57,990			55,151
Total Liabilities and Stockholders' Equity	$	523,594		$	508,442

See notes to consolidated financial statements.

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PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
(In thousands, except share and per share data)	2011			2010			2011			2010
INTEREST INCOME
Loans, including fees	$	5,155		$	5,575		$	15,488		$	16,782
Securities:
Taxable		1,159			742			3,312			2,384
Tax-exempt		244			193			598			424
Dividend income		26			27			84			59
Interest-bearing deposits with banks		8			4			15			13
Total interest income		6,592			6,541			19,497			19,662
INTEREST EXPENSE
Deposits		970			1,125			3,017			3,674
Repurchase agreements		84			83			241			255
Borrowings from Federal Home Loan Bank		273			267			828			724
Total interest expense		1,327			1,475			4,086			4,653
Net interest income		5,265			5,066			15,411			15,009
Provision for loan losses		435			300			1,074			1,246
Net interest income after provision for loan losses		4,830			4,766			14,337			13,763
NONINTEREST INCOME
Service charges on deposit accounts		348			405			1,022			1,184
Net gain on sales of securities available for sale		-			34			68			34
Unrealized gain (loss) on derivative contract		(31	)		(16	)		2			(88	)
Net gain on sales of loans		124			29			263			72
Increase in cash surrender value of life insurance		81			64			230			174
Commission income		74			55			160			125
Other income		196			168			531			500
Total noninterest income		792			739			2,276			2,001
NONINTEREST EXPENSE
Compensation and benefits		2,130			2,638			6,387			6,654
Occupancy and equipment		445			554			1,343			1,638
Data processing		273			530			828			1,263
Advertising		76			81			238			242
Professional fees		141			216			414			540
FDIC insurance premiums		149			177			432			459
Net loss on foreclosed real estate		108			8			340			25
Other operating expenses		734			718			2,145			2,109
Total noninterest expense		4,056			4,922			12,127			12,930
Income before income taxes		1,566			583			4,486			2,834
Income tax expense		443			83			1,309			742
Net Income	$	1,123		$	500		$	3,177		$	2,092
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized gain (loss) on securities:
Unrealized holding gains (losses) arising during the period	$	709		$	731		$	(100	)	$	1,622
Less: reclassification adjustment		-			(21	)		(45	)		(21	)
Unrealized gain (loss) on securities		709			710			(145	)		1,601
Reclassification adjustment - net realized loss
on settlement of pension plan		-			(428	)		-			(428	)
Other comprehensive income (loss)		709			282			(145	)		1,173
Comprehensive Income	$	1,832		$	782		$	3,032		$	3,265
Net Income per common share, basic	$	0.53		$	0.23		$	1.48		$	0.92
Net Income per common share, diluted	$	0.51		$	0.23		$	1.45		$	0.92
Dividends per common share	$	-		$	-		$	-		$	0.08

See notes to consolidated financial statements.

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PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended
	June 30,
(In thousands)	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	3,177		$	2,092
Adjustments to reconcile net income to net cash provided
by operating activities:
Provision for loan losses		1,074			1,246
Depreciation and amortization		678			870
Amortization of premiums and accretion of discounts on securities, net		(151	)		77
Mortgage loans originated for sale		(8,721	)		(7,439	)
Proceeds on sale of loans		10,764			7,353
Gain on sale of  loans		(263	)		(72	)
Net realized and unrealized (gain) loss on foreclosed real estate		204			(113	)
Net gain on sales of securities available for sale		(68	)		(34	)
Unrealized (gain) loss on derivative contract		(2	)		88
Increase in cash surrender value of life insurance		(230	)		(174	)
Deferred income taxes		287			96
ESOP and stock compensation expense		517			333
Increase in accrued interest receivable		(184	)		(380	)
Decrease in accrued interest payable		(14	)		(55	)
Change in other assets and liabilities, net		79			290
Net Cash Provided By Operating Activities		7,147			4,178
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities available for sale		(39,657	)		(71,170	)
Proceeds from sales of securities available for sale		3,914			13,640
Proceeds from maturities of securities available for sale		15,853			18,582
Proceeds from maturities of securities held to maturity		303			-
Principal collected on mortgage-backed securities		9,065			12,611
Net (increase) decrease in loans		(10,851	)		8,435
Purchase of Federal Home Loan Bank Stock		(351	)		-
Proceeds from redemption of Federal Home Loan Bank stock		121			-
Investment in cash surrender value of life insurance		-			(4,200	)
Proceeds from sale of foreclosed real estate		951			788
Purchase of premises and equipment		(1,146	)		(258	)
Net Cash Used In Investing Activities		(21,798	)		(21,572	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits		11,148			13,782
Net decrease in federal funds purchased		-			(1,180	)
Net decrease in repurchase agreements		(314	)		(314	)
Increase (decrease) in Federal Home Loan Bank line of credit		(667	)		1,596
Proceeds from Federal Home Loan Bank advances		105,000			92,439
Repayment of Federal Home Loan Bank advances		(102,081	)		(85,758	)
Net decrease in advance payments by borrowers
for taxes and insurance		(51	)		(173	)
Purchase of treasury stock		(726	)		(1,329	)
Purchase of common shares for restricted stock grants		-			(1,388	)
Dividends paid		-			(193	)
Net Cash Provided By Financing Activities		12,309			17,482
Net Increase (Decrease) in Cash and Cash Equivalents		(2,342	)		88
Cash and cash equivalents at beginning of period		11,278			10,404
Cash and Cash Equivalents at End of Period	$	8,936		$	10,492

See notes to consolidated financial statements.

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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 June 30, 2011, the results of operations for the three- and nine-month periods ended June 30, 2011 and 2010 and the cash flows for the nine-month periods ended June 30, 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:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
June 30, 2011:
Securities available for sale:
Agency bonds and notes	$	24,769	$	173	$	43	$	24,899
Agency mortgage-backed		14,715		439		-		15,154
Agency CMO		23,600		361		18		23,943
Privately-issued CMO		10,091		2,513		155		12,449
Municipal		44,060		1,316		157		45,219
Subtotal – debt securities		117,235		4,802		373		121,664
Equity securities		-		87		-		87
Total securities available for sale	$	117,235	$	4,889	$	373	$	121,751
Securities held to maturity:
Agency mortgage-backed	$	2,667	$	192	$	-	$	2,859
Total securities held to maturity	$	2,667	$	192	$	-	$	2,859
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

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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 U.S. 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 June 30, 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		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Due within one year	$	412	$	411	$	-	$	-
Due after one year throughfive years		3,995		3,979		-		-
Due after five years throughten years		6,895		7,070		-		-
Due after ten years		57,527		58,658		-		-
		68,829		70,118		-		-
Equity securities		-		87		-		-
CMO		33,691		36,392		-		-
Mortgage-backed securities		14,715		15,154		2,667		2,859
	$	117,235	$	121,751	$	2,667	$	2,859

- 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 June 30, 2011, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, follows:

	Number				Gross
	of Investment		Fair		Unrealized
	Positions		Value		Losses
	(Dollars in thousands)
Securities available for sale:
Continuous loss position less than twelve months:
Agency bonds and notes		4	$	4,456	$	43
Agency CMO		1		2,111		18
Privately-issued CMO		3		908		84
Municipal bonds		7		2,925		29
		15		10,400		174
Continuous loss position more than twelve months:
Privately-issued CMO		3		172		71
Municipal bonds		1		1,821		128
		4		1,993		199
Total securities available for sale		19	$	12,393	$	373

At June 30, 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 June 30, 2011 have depreciated approximately 2.9% from their amortized cost basis and had a weighted-average yield of 4.11% and a weighted-average coupon rate of 3.73%.

U.S. government agency debt securities, including mortgage-backed securities and CMO securities, and municipal bonds in loss positions at June 30, 2011 had depreciated approximately 1.9% from their 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.

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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 June 30, 2011, the six privately-issued CMO securities in loss positions had depreciated approximately 12.5% from the amortized cost basis and include securities collateralized by home equity lines of credit or other mortgage-related loan products.  Two of the these securities continued to be rated by a nationally recognized statistical rating organization as investment grade assets and the remaining four securities have fair values totaling $970,000 and unrealized losses of $129,000 at June 30, 2011.

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 June 30, 2011, the Company held nineteen privately-issued CMO securities with an aggregate amortized cost of $5.5 million and fair value of $7.1 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 was recognized on the privately-issued CMO portfolio during the three and nine months ended June 30, 2011.  While there was no credit-related impairment loss at June 30, 2011, additional deterioration in market and economic conditions may have an adverse impact on the credit quality in the future.

During the nine months ended June 30, 2011, 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 June 30, 2011.  The Company realized net gains on sales of available for sale securities of $34,000 for the three and nine months ended June 30, 2010.

- 10 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3.  Loans and Allowance for Loan Losses

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

	June 30, 2011			September 30, 2010
	(In thousands)
Real estate mortgage:
1-4 family residential	$	173,626		$	172,007
Multi-family residential		24,887			20,360
Commercial		68,534			53,869
Residential construction		6,486			15,867
Commercial construction		3,048			9,851
Land and land development		12,828			9,076
Commercial business loans		38,826			30,905
Consumer:
Home equity loans		15,779			16,335
Auto loans		10,503			13,405
Other consumer loans		4,962			7,030
Gross loans		359,479			348,705
Deferred loan origination fees and costs, net		620			778
Undisbursed portion of loans in process		(2,942	)		(2,057	)
Allowance for loan losses		(4,447	)		(3,811	)
Loans, net	$	352,710		$	343,615

During the nine-month period ended June 30, 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 June 30, 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	$	173,626	$	68,534		$	24,887		$	6,592		$	12,828		$	38,826		$	31,244	$	356,537
Accrued interest receivable		678		330			93			20			73			189			123		1,506
Net deferred loan origination fees and costs		662		(35	)		(1	)		(4	)		(2	)		(35	)		35		620
Recorded investment in loans	$	174,966	$	68,829		$	24,979		$	6,608		$	12,899		$	38,980		$	31,402	$	358,663
Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	5,021	$	1,989		$	-		$	287		$	340		$	16		$	222	$	7,875
Collectively evaluated for impairment		169,171		66,276			24,979			6,321			12,559			38,964			31,140		349,410
Acquired with deteriorated credit quality		774		564			-			-			-			-			40		1,378
Ending balance	$	174,966	$	68,829		$	24,979		$	6,608		$	12,899		$	38,980		$	31,402	$	358,663

- 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 nine months ended June 30, 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 June 30, 2011:
Beginning balance	$	1,236		$	880		$	554	$	145		$	37	$	961		$	344		$	-	$	4,157
Provisions		(203	)		210			135		(91	)		57		193			134			-		435
Charge-offs		(177	)		-			-		-			-		(19	)		(117	)		-		(313	)
Recoveries		-			-			-		-			-		153			15			-		168
Ending balance	$	856		$	1,090		$	689	$	54		$	94	$	1,288		$	376		$	-	$	4,447
Changes in Allowance for Loan Losses for the nine-months ended June 30, 2011:
Beginning balance	$	1,242		$	600		$	369	$	218		$	62	$	891		$	429		$	-	$	3,811
Provisions		15			495			320		(156	)		32		255			113			-		1,074
Charge-offs		(414	)		(5	)		-		(8	)		-		(72	)		(211	)		-		(710	)
Recoveries		13			-			-		-			-		214			45			-		272
Ending balance	$	856		$	1,090		$	689	$	54		$	94	$	1,288		$	376		$	-	$	4,447
Ending Allowance Balance Attributable to Loans:
Individually evaluated for impairment	$	80		$	110		$	-	$	-		$	-	$	14		$	40		$	-	$	244
Collectively evaluated for impairment		776			980			689		54			94		1,274			336			-		4,203
Acquired with deteriorated credit quality		-			-			-		-			-		-			-			-		-
Ending balance	$	856		$	1,090		$	689	$	54		$	94	$	1,288		$	376		$	-	$	4,447

- 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 nine months ended June 30, 2011.

	At June 30, 2011						Three Months Ended June 30, 2011						Nine Months Ended June 30, 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	$	4,805	$	4,762	$	-	$	3,835	$	14	$	13	$	3,092	$	30	$	26
Commercial real estate		1,439		1,426		-		1,422		13		13		1,250		15		14
Multifamily		-		-		-		16		-		-		8		1		-
Construction		287		284		-		447		-		-		467		5		1
Land and land development		340		340		-		369		-		-		284		-		-
Commercial business		2		2		-		74		-		-		163		3		2
Consumer		98		98		-		177		-		-		209		2		1
	$	6,971	$	6,912	$	-	$	6,340	$	27	$	26	$	5,473	$	56	$	44
Loans with an allowance recorded:
Residential real estate	$	216	$	216	$	80	$	284	$	-	$	-	$	468	$	-	$	-
Commercial real estate		550		550		110		513		-		-		380		-		-
Multifamily		-		-		-		-		-		-		-		-		-
Construction		-		-		-		10		-		-		105		-		-
Land and land development		-		-		-		-		-		-		-		-		-
Commercial business		14		14		14		7		-		-		4		-		-
Consumer		124		124		40		109		-		-		104		-		-
	$	904	$	904	$	244	$	923	$	-	$	-	$	1,061	$	-	$	-
Total:
Residential real estate	$	5,021	$	4,978	$	80	$	4,119	$	14	$	13	$	3,560	$	30	$	26
Commercial real estate		1,989		1,976		110		1,935		13		13		1,630		15		14
Multifamily		-		-		-		16		-		-		8		1		-
Construction		287		284		-		457		-		-		572		5		1
Land and land development		340		340		-		369		-		-		284		-		-
Commercial business		16		16		14		81		-		-		167		3		2
Consumer		222		222		40		286		-		-		313		2		1
	$	7,875	$	7,816	$	244	$	7,263	$	27	$	26	$	6,534	$	56	$	44

- 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 June 30, 2011:

	Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans
	(In thousands)
Residential real estate	$	4,297	$	724	$	5,021
Commercial real estate		1,260		729		1,989
Multifamily		-		-		-
Construction		174		113		287
Land and land development		340		-		340
Commercial business		16		-		16
Consumer		217		5		222
Total	$	6,304	$	1,571	$	7,875

The following table presents the aging of the recorded investment in past due loans at June 30, 2011 by class of loans:

30-59 Days Past Due 60-89 Days Past Due