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 June 30, 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 August 2, 2022 was 7,090,631.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

Part I	Financial Information	Page
	Item 1. Financial Statements
	Consolidated Balance Sheets as of June 30, 2022 and September 30, 2021 (unaudited)	3
	Consolidated Statements of Income for the three and nine months ended June 30, 2022 and 2021 (unaudited)	4
	Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended June 30, 2022 and 2021 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended June 30, 2022 and 2021 (unaudited)	6
	Consolidated Statements of Cash Flows for the nine months ended June 30, 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)

	June 30,		September 30,
(In thousands, except share and per share data)	2022		2021
ASSETS
Cash and due from banks	$	14,074	$	14,191
Interest-bearing deposits with banks		23,394		19,237
Total cash and cash equivalents		37,468		33,428
Interest-bearing time deposits		1,616		2,222
Securities available for sale, at fair value		307,376		206,681
Securities held to maturity		1,651		1,837
Loans held for sale, residential mortgage, at fair value		94,670		167,813
Loans held for sale, single tenant net lease		73,276		23,020
Loans held for sale, Small Business Administration		20,085		24,107
Loans, net of allowance for loan losses of $14,980 at June 30, 2022 and $14,301 at September 30, 2021		1,267,816		1,075,936
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		19,704		19,258
Premises and equipment		27,120		27,669
Other real estate owned, held for sale		1,007		1,728
Accrued interest receivable:
Loans		4,777		4,398
Securities		3,052		1,845
Cash surrender value of life insurance		44,935		44,152
Goodwill		9,848		9,848
Core deposit intangibles		828		988
Residential mortgage loan servicing rights, at fair value		64,839		49,579
Nonresidential mortgage loan servicing rights, at fair value		150		—
SBA loan servicing rights		4,050		4,447
Other assets		22,398		22,438
Total Assets	$	2,006,666	$	1,721,394
LIABILITIES
Deposits:
Noninterest-bearing	$	343,292	$	291,039
Interest-bearing		1,002,415		936,541
Total deposits		1,345,707		1,227,580
Federal Home Loan Bank borrowings		404,098		250,000
Other borrowings		50,160		19,865
Accrued interest payable		720		258
Advance payments by borrowers for taxes and insurance		1,116		2,076
Accrued expenses and other liabilities		35,652		41,238
Total Liabilities		1,837,453		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 7,110,706 shares (7,125,888 shares at September 30, 2021)		78		78
Additional paid-in capital		27,158		25,721
Retained earnings - substantially restricted		161,438		150,185
Accumulated other comprehensive income (loss)		(12,560)		8,900
Unearned stock compensation		(1,075)		(138)
Less treasury stock, at cost - 643,610 shares (582,678 shares at September 30, 2021)		(5,826)		(4,369)
Total Stockholders' Equity		169,213		180,377
Total Liabilities and Stockholders' Equity	$	2,006,666	$	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				Nine Months Ended
	June 30,				June 30,
(In thousands, except share and per share data)	2022		2021		2022		2021
INTEREST INCOME
Loans, including fees	$	15,934	$	14,347	$	43,917	$	43,632
Securities:
Taxable		769		447		1,594		1,350
Tax-exempt		1,570		1,181		4,003		3,548
Dividend income		169		161		464		436
Interest-bearing deposits with banks		37		14		64		50
Total interest income		18,479		16,150		50,042		49,016
INTEREST EXPENSE
Deposits		1,047		723		2,596		2,430
Federal Home Loan Bank borrowings		811		780		2,222		2,474
Federal Reserve PPPLF borrowings		—		98		—		388
Other borrowings		710		320		1,397		976
Total interest expense		2,568		1,921		6,215		6,268
Net interest income		15,911		14,229		43,827		42,748
Provision (credit) for loan losses		532		(2,730)		1,028		(1,775)
Net interest income after provision (credit) for loan losses		15,379		16,959		42,799		44,523
NONINTEREST INCOME
Service charges on deposit accounts		462		343		1,329		1,067
ATM and interchange fees		774		650		2,047		1,795
Net gain on sales of available for sale securities		476		—		476		—
Net unrealized gain (loss) on equity securities		(11)		(2)		(11)		36
Net gain on sales of loans, Small Business Administration		486		2,322		3,449		6,828
Net gain on sales of loans, single tenant net lease		—		—		719		—
Mortgage banking income		7,093		14,351		36,091		91,503
Increase in cash surrender value of life insurance		277		179		782		539
Commission income		177		406		522		905
Real estate lease income		155		148		451		444
Net gain on premises and equipment		—		7		—		78
Income from tax credit investment		—		—		10		—
Other income		144		381		831		746
Total noninterest income		10,033		18,785		46,696		103,941
NONINTEREST EXPENSE
Compensation and benefits		15,215		21,330		49,982		84,673
Occupancy and equipment		2,069		2,586		6,261		7,685
Data processing		679		717		1,957		2,055
Advertising		806		1,349		2,600		5,712
Professional fees		1,410		1,491		3,973		4,360
FDIC insurance premiums		121		106		346		340
Net gains on other real estate owned		—		(48)		—		(44)
Other operating expenses		2,535		3,088		8,029		9,524
Total noninterest expense		22,835		30,619		73,148		114,305
Income before income taxes		2,577		5,125		16,347		34,159
Income tax expense (benefit)		(61)		817		2,369		9,039
Net Income		2,638		4,308		13,978		25,120
Less: net income attributable to noncontrolling interests		—		—		—		402
Net Income Attributable to First Savings Financial Group, Inc.	$	2,638	$	4,308	$	13,978	$	24,718
Net income per share:
Basic	$	0.37	$	0.61	$	1.97	$	3.48
Diluted	$	0.37	$	0.60	$	1.95	$	3.45
Weighted average shares outstanding:
Basic		7,073,204		7,109,481		7,082,034		7,106,505
Diluted		7,145,288		7,178,943		7,166,632		7,166,235
Dividends per share	$	0.13	$	0.12	$	0.38	$	0.24

* 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				Nine Months Ended
	June 30,				June 30,
(In thousands)	2022		2021		2022		2021
Net Income	$	2,638	$	4,308	$	13,978	$	25,120
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		(13,732)		1,488		(26,689)		(1,077)
Income tax (expense) benefit		2,884		(312)		5,605		226
Net of tax amount		(10,848)		1,176		(21,084)		(851)
Less: reclassification adjustment for realized gains included in net income		(476)		—		(476)		—
Income tax expense		100		—		100		—
Net of tax amount		(376)		—		(376)		—
Other Comprehensive Income (Loss)		(11,224)		1,176		(21,460)		(851)
Comprehensive Income (Loss)		(8,586)		5,484		(7,482)		24,269
Less: comprehensive income attributable to noncontrolling interests		—		—		—		402
Comprehensive Income (Loss) Attributable to First Savings Financial Group, Inc.	$	(8,586)	$	5,484	$	(7,482)	$	23,867

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		Compensation		Stock		Subsidiary		Total
Three Months Ended June 30, 2021:
Balances at April 1, 2021	$	26	$	25,682	$	142,738	$	9,182	$	(245)	$	(4,343)	$	—	$	173,040
Net income		—		—		4,308		—		—		—		—		4,308
Other comprehensive income		—		—		—		1,176		—		—		—		1,176
Common stock dividends - $0.06 per share		—		—		(855)		—		—		—		—		(855)
Restricted stock forfeitures - 900 shares		—		(17)		—		—