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 December 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 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 February 4, 2022 was 7,169,826.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

		Page
Part I	Financial Information
	Item 1. Financial Statements
	Consolidated Balance Sheets as of December 31, 2021 and September 30, 2021 (unaudited)	3
	Consolidated Statements of Income for the three months ended December 31, 2021 and 2020 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the three months ended December 31, 2021 and 2020 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three  months ended December 31, 2021 and 2020 (unaudited)	6
	Consolidated Statements of Cash Flows for the three months ended December 31, 2021 and 2020 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8-47
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	48-55
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	56-57
	Item 4. Controls and Procedures	58
Part II	Other Information
	Item 1. Legal Proceedings	59
	Item 1A. Risk Factors	59
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	59
	Item 3. Defaults Upon Senior Securities	59
	Item 4. Mine Safety Disclosures	59
	Item 5. Other Information	60
	Item 6. Exhibits	60
Signatures		61

-2-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	December 31,		September 30,
(In thousands, except share and per share data)	2021		2021
ASSETS
Cash and due from banks	$	16,543	$	14,191
Interest-bearing deposits with banks		24,049		19,237
Total cash and cash equivalents		40,592		33,428
Interest-bearing time deposits		1,973		2,222
Securities available for sale, at fair value		219,124		206,681
Securities held to maturity		1,802		1,837
Loans held for sale, residential mortgage, at fair value		120,564		167,813
Loans held for sale, single tenant net lease		15,656		23,020
Loans held for sale, Small Business Administration		24,998		24,107
Loans, net of allowance for loan losses of $14,780 at December 31, 2021 and $14,301 at September 30, 2021		1,142,655		1,075,936
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		19,258		19,258
Premises and equipment		27,204		27,669
Other real estate owned, held for sale		1,728		1,728
Accrued interest receivable:
Loans		4,507		4,398
Securities		2,330		1,845
Cash surrender value of life insurance		44,407		44,152
Goodwill		9,848		9,848
Core deposit intangibles		935		988
Residential mortgage loan servicing rights, at fair value		54,758		49,579
SBA loan servicing rights		4,429		4,447
Other assets		27,821		22,438
Total Assets	$	1,764,589	$	1,721,394
LIABILITIES
Deposits:
Noninterest-bearing	$	287,449	$	291,039
Interest-bearing		979,586		936,541
Total deposits		1,267,035		1,227,580
Federal Home Loan Bank borrowings		258,377		250,000
Other borrowings		19,881		19,865
Accrued interest payable		251		258
Advance payments by borrowers for taxes and insurance		1,205		2,076
Accrued expenses and other liabilities		33,620		41,238
Total Liabilities		1,580,369		1,541,017
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 7,754,316 shares (7,708,566 at September 30, 2021); outstanding 7,169,826 shares (7,125,888 shares at September 30, 2021)		78		78
Additional paid-in capital		26,995		25,721
Retained earnings - substantially restricted		153,630		150,185
Accumulated other comprehensive income		9,219		8,900
Unearned stock compensation		(1,285)		(138)
Less treasury stock, at cost - 584,490 shares (582,678 shares at September 30, 2021)		(4,417)		(4,369)
Total Stockholders' Equity		184,220		180,377
Total Liabilities and Stockholders' Equity	$	1,764,589	$	1,721,394

* All share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021.

See notes to consolidated financial statements.

-3-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
	December 31,
(In thousands, except share and per share data)	2021		2020
INTEREST INCOME
Loans, including fees	$	14,002	$	14,238
Securities:
Taxable		405		471
Tax-exempt		1,192		1,191
Dividend income		149		108
Interest-bearing deposits with banks		14		18
Total interest income		15,762		16,026
INTEREST EXPENSE
Deposits		811		936
Federal Home Loan Bank borrowings		730		861
Federal Reserve PPPLF borrowings		—		153
Other borrowings		318		337
Total interest expense		1,859		2,287
Net interest income		13,903		13,739
Provision for loan losses		526		668
Net interest income after provision for loan losses		13,377		13,071
NONINTEREST INCOME
Service charges on deposit accounts		434		396
ATM and interchange fees		679		632
Net unrealized gain on equity securities		16		11
Net gain on sales of loans, Small Business Administration		1,636		1,267
Net gain on sales of loans, single tenant net lease		162		—
Mortgage banking income		12,744		43,229
Increase in cash surrender value of life insurance		254		186
Commission income		188		134
Real estate lease income		148		147
Income from tax credit investment		10		—
Other income		320		181
Total noninterest income		16,591		46,183
NONINTEREST EXPENSE
Compensation and benefits		17,291		33,862
Occupancy and equipment		2,113		2,585
Data processing		633		789
Advertising		792		2,311
Professional fees		1,189		1,274
FDIC insurance premiums		115		140
Net loss on other real estate owned		—		3
Other operating expenses		2,719		3,438
Total noninterest expense		24,852		44,402
Income before income taxes		5,116		14,852
Income tax expense		811		4,527
Net Income		4,305		10,325
Less: net income attributable to noncontrolling interests		—		402
Net Income Attributable to First Savings Financial Group, Inc.	$	4,305	$	9,923
Net income per share:
Basic	$	0.60	$	1.40
Diluted	$	0.60	$	1.39
Weighted average shares outstanding:
Basic		7,116,790		7,101,183
Diluted		7,207,210		7,154,106
Dividends per share	$	0.12	$	0.06

* All share and per share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021.

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
	December 31,
(In thousands)	2021		2020
Net Income	$	4,305	$	10,325
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains on securities available for sale:
Unrealized holding gains arising during the period		404		861
Income tax expense		(85)		(181)
Net of tax amount		319		680
Other Comprehensive Income		319		680
Comprehensive Income		4,624		11,005
Less: comprehensive income attributable to noncontrolling interests		—		402
Comprehensive Income Attributable to First Savings Financial Group, Inc.	$	4,624	$	10,603

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
Balances at October 1, 2020	$	26	$	27,480	$	123,158	$	11,209	$	(348)	$	(4,253)	$	293	$	157,565
Net income		—		—		9,923		—		—		—		402		10,325
Acquisition of minority interests in Q2		—		(1,757)		—		—		—		—		(695)		(2,452)
Other comprehensive income		—		—		—		680		—		—		—		680
Common stock dividends - $0.06 per share		—		—		(401)		—		—		—		—		(401)
Restricted stock forfeitures - 600 shares		—		(8)		—		—		8		—		—		—
Stock compensation expense		—		22		—		—		48		—		—		70
Stock option exercises - 3,600 shares		—		—		—		—		—		—		—		—
Purchase of 4,191 treasury shares		—		—		—		—		—		(42)		—		(42)
Balances at December 31, 2020	$	26	$	25,737	$	132,680	$	11,889	$	(292)	$	(4,295)	$	—	$	165,745
Balances at October 1, 2021	$	78	$	25,721	$	150,185	$	8,900	$	(138)	$	(4,369)	$	—	$	180,377
Net income		—		—		4,305		—		—		—		—		4,305
Other comprehensive income		—		—		—		319		—		—		—		319
Common stock dividends - $0.12 per share		—		—		(860)		—		—		—		—		(860)
Restricted stock grants - 45,750 shares		—		1,222		—		—		(1,222)		—		—		—
Stock compensation expense		—		52		—		—		75		—		—		127
Purchase of 1,812 treasury shares		—		—		—		—		—		(48)		—		(48)