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 March 31, 2022

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 May 3, 2022 was 7,169,826.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

Part I	Financial Information	Page
	Item 1. Financial Statements
	Consolidated Balance Sheets as of March 31, 2022 and September 30, 2021 (unaudited)	3
	Consolidated Statements of Income for the three and six months ended March 31, 2022 and 2021 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended March 31, 2022 and 2021 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended March 31, 2022 and 2021 (unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended March 31, 2022 and 2021 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8-50
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	51-61
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	62-63
	Item 4. Controls and Procedures	64
Part II	Other Information
	Item 1. Legal Proceedings	65
	Item 1A. Risk Factors	65
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	65
	Item 3. Defaults Upon Senior Securities	65
	Item 4. Mine Safety Disclosures	65
	Item 5. Other Information	66
	Item 6. Exhibits	66
Signatures		67

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PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,		September 30,
(In thousands, except share and per share data)	2022		2021
ASSETS
Cash and due from banks	$	13,365	$	14,191
Interest-bearing deposits with banks		17,740		19,237
Total cash and cash equivalents		31,105		33,428
Interest-bearing time deposits		1,770		2,222
Securities available for sale, at fair value		282,990		206,681
Securities held to maturity		1,684		1,837
Loans held for sale, residential mortgage, at fair value		98,640		167,813
Loans held for sale, single tenant net lease		38,225		23,020
Loans held for sale, Small Business Administration		15,787		24,107
Loans, net of allowance for loan losses of $14,475 at March 31, 2022 and $14,301 at September 30, 2021		1,126,818		1,075,936
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		18,667		19,258
Premises and equipment		26,816		27,669
Other real estate owned, held for sale		1,728		1,728
Accrued interest receivable:
Loans		4,188		4,398
Securities		2,085		1,845
Cash surrender value of life insurance		44,658		44,152
Goodwill		9,848		9,848
Core deposit intangibles		882		988
Residential mortgage loan servicing rights, at fair value		63,660		49,579
Nonresidential mortgage loan servicing rights		160		—
SBA loan servicing rights		4,447		4,447
Other assets		27,786		22,438
Total Assets	$	1,801,944	$	1,721,394
LIABILITIES
Deposits:
Noninterest-bearing	$	311,738	$	291,039
Interest-bearing		909,451		936,541
Total deposits		1,221,189		1,227,580
Federal Home Loan Bank borrowings		296,592		250,000
Other borrowings		50,184		19,865
Accrued interest payable		282		258
Advance payments by borrowers for taxes and insurance		1,392		2,076
Accrued expenses and other liabilities		52,352		41,238
Total Liabilities		1,621,991		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		27,076		25,721
Retained earnings - substantially restricted		159,732		150,185
Accumulated other comprehensive income (loss)		(1,336)		8,900
Unearned stock compensation		(1,180)		(138)
Less treasury stock, at cost - 584,490 shares (582,678 shares at September 30, 2021)		(4,417)		(4,369)
Total Stockholders' Equity		179,953		180,377
Total Liabilities and Stockholders' Equity	$	1,801,944	$	1,721,394

See notes to consolidated financial statements.

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PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands, except share and per share data)	2022		2021		2022		2021
INTEREST INCOME
Loans, including fees	$	13,981	$	15,047	$	27,983	$	29,285
Securities:
Taxable		420		432		825		903
Tax-exempt		1,241		1,176		2,433		2,367
Dividend income		146		167		295		275
Interest-bearing deposits with banks		13		18		27		36
Total interest income		15,801		16,840		31,563		32,866
INTEREST EXPENSE
Deposits		738		771		1,549		1,707
Federal Home Loan Bank borrowings		681		833		1,411		1,694
Federal Reserve PPPLF borrowings		—		137		—		290
Other borrowings		369		319		687		656
Total interest expense		1,788		2,060		3,647		4,347
Net interest income		14,013		14,780		27,916		28,519
Provision (credit) for loan losses		(30)		287		496		955
Net interest income after provision (credit) for loan losses		14,043		14,493		27,420		27,564
NONINTEREST INCOME
Service charges on deposit accounts		433		328		867		724
ATM and interchange fees		594		513		1,273		1,145
Net unrealized gain (loss) on equity securities		(16)		27		—		38
Net gain on sales of loans, Small Business Administration		1,327		3,239		2,963		4,506
Net gain on sales of loans, single tenant net lease		557		—		719		—
Mortgage banking income		16,254		31,469		28,998		74,698
Increase in cash surrender value of life insurance		251		174		505		360
Commission income		157		365		345		499
Real estate lease income		148		149		296		296
Net gain on premises and equipment		—		71		—		71
Income from tax credit investment		—		—		10		—
Other income		367		2,638		687		2,819
Total noninterest income		20,072		38,973		36,663		85,156
NONINTEREST EXPENSE
Compensation and benefits		17,476		29,481		34,767		63,343
Occupancy and equipment		2,079		2,514		4,192		5,099
Data processing		645		549		1,278		1,338
Advertising		1,002		2,052		1,794		4,363
Professional fees		1,374		1,595		2,563		2,869
FDIC insurance premiums		110		94		225		234
Net loss on other real estate owned		—		1		—		4
Other operating expenses		2,775		2,998		5,494		6,436
Total noninterest expense		25,461		39,284		50,313		83,686
Income before income taxes		8,654		14,182		13,770		29,034
Income tax expense		1,619		3,695		2,430		8,222
Net Income		7,035		10,487		11,340		20,812
Less: net income attributable to noncontrolling interests		—		—		—		402
Net Income Attributable to First Savings Financial Group, Inc.	$	7,035	$	10,487	$	11,340	$	20,410
Net income per share:
Basic	$	0.99	$	1.48	$	1.60	$	2.87
Diluted	$	0.98	$	1.46	$	1.58	$	2.85
Weighted average shares outstanding:
Basic		7,076,355		7,108,926		7,086,739		7,105,014
Diluted		7,156,229		7,164,189		7,173,710		7,159,125
Dividends per share	$	0.13	$	0.06	$	0.25	$	0.12

* 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.

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PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2022		2021		2022		2021
Net Income	$	7,035	$	10,487	$	11,340	$	20,812
OTHER COMPREHENSIVE LOSS, NET OF TAX
Unrealized losses on securities available for sale:
Unrealized holding losses arising during the period		(13,361)		(3,427)		(12,957)		(2,565)
Income tax benefit		2,806		720		2,721		538
Net of tax amount		(10,555)		(2,707)		(10,236)		(2,027)
Other Comprehensive Loss		(10,555)		(2,707)		(10,236)		(2,027)
Comprehensive Income (Loss)		(3,520)		7,780		1,104		18,785
Less: comprehensive income attributable to noncontrolling interests		—		—		—		402
Comprehensive Income (Loss) Attributable to First Savings Financial Group, Inc.	$	(3,520)	$	7,780	$	1,104	$	18,383

See notes to consolidated financial statements.

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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 (Loss)		Compensation		Stock		Subsidiary		Total
Three Months Ended March 31, 2021:
Balances at January 1, 2021	$	26	$	25,737	$	132,680	$	11,889	$	(292)	$	(4,295)	$	—	$	165,745
Net income		—		—		10,487		—		—		—		—		10,487
Acquisition of minority interests in Q2		—		(131)		—		—		—		—		—		(131)
Other comprehensive loss		—		—		—		(2,707)		—		—		—		(2,707)
Common stock dividends - $0.06 per share		—		—		(429)		—		—		—		—		(429)
Stock compensation expense		—		24		—		—		47		—		—		71
Stock option exercises - 300 shares		—		52		—		—		—		—		—		52