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, 2023


	☐	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, 2023 was 6,865,921.

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


	June 30,		September 30,
(In thousands, except share and per share data)	2023		2022
ASSETS
Cash and due from banks	$	23,722	$	18,312
Interest-bearing deposits with banks		18,753		23,353
Total cash and cash equivalents		42,475		41,665

Interest-bearing time deposits		980		1,613
Debt securities available for sale, at fair value		248,397		316,517
Debt securities held to maturity		1,391		1,558

Loans held for sale, residential mortgage, at fair value		50,066		38,579
Loans held for sale, Small Business Administration		13,076		21,883
Loans, net of allowance for loan losses of $16,838 at June 30, 2023 and $15,360 at September 30, 2022		1,691,289		1,474,544
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		24,939		20,004
Premises and equipment, net		27,999		27,100
Other real estate owned, held for sale		233		203
Accrued interest receivable:
Loans		7,218		5,379
Securities		3,243		2,953
Cash surrender value of life insurance		45,915		45,145
Goodwill		9,848		9,848
Core deposit intangibles		614		775
Residential mortgage loan servicing rights, at fair value		60,649		63,263
Nonresidential mortgage loan servicing rights		116		141
SBA loan servicing rights		3,374		3,790
Other assets		28,599		18,765

Total Assets	$	2,260,421	$	2,093,725

LIABILITIES
Deposits:
Noninterest-bearing	$	315,602	$	340,172
Interest-bearing		1,344,163		1,175,662
Total deposits		1,659,765		1,515,834

Federal Home Loan Bank borrowings		345,000		307,303
Other borrowings		48,387		88,206
Accrued interest payable		5,782		1,302
Advance payments by borrowers for taxes and insurance		907		1,207
Accrued expenses and other liabilities		35,512		28,308
Total Liabilities		2,095,353		1,942,160

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 7,777,271 shares at June 30, 2023 (7,757,271 at September 30, 2022); outstanding 6,865,921 shares at June 30, 2023 (6,970,631 shares at September 30, 2022)		78		78
Additional paid-in capital		27,440		26,770
Retained earnings - substantially restricted		168,015		161,927
Accumulated other comprehensive loss		(17,565)		(27,079)
Unearned stock compensation		(1,113)		(969)
Less treasury stock, at cost - 911,350 shares (786,640 shares at September 30, 2022)		(11,787)		(9,162)
Total Stockholders’ Equity		165,068		151,565

Total Liabilities and Stockholders’ Equity	$	2,260,421	$	2,093,725

See notes to condensed consolidated financial statements.

-3-

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(In thousands, except share and per share data)	2023		2022		2023		2022

INTEREST INCOME
Loans, including fees	$	23,184	$	15,934	$	64,666	$	43,917
Securities:
Taxable		984		769		2,896		1,594
Tax-exempt		1,940		1,570		5,920		4,003
Dividend income		423		169		1,007		464
Interest-bearing deposits with banks		267		37		603		64
Total interest income		26,798		18,479		75,092		50,042

INTEREST EXPENSE
Deposits		7,791		1,047		18,214		2,596
Federal Home Loan Bank borrowings		3,446		811		8,280		2,222
Other borrowings		696		710		2,560		1,397
Total interest expense		11,933		2,568		29,054		6,215

Net interest income		14,865		15,911		46,038		43,827
Provision for loan losses		441		532		1,797		1,028

Net interest income after provision for loan losses		14,424		15,379		44,241		42,799

NONINTEREST INCOME
Service charges on deposit accounts		509		462		1,538		1,329
ATM and interchange fees		615		774		1,940		2,047
Net gain (loss) on sales of available for sale securities		(540)		476		(540)		476
Net unrealized gain (loss) on equity securities		11		(11)		46		(11)
Other than temporary impairment loss on securities		—		—		(28)		—
Net gain on sales of loans, Small Business Administration		497		486		2,179		3,449
Net gain on sales of loans, single tenant net lease		—		—		—		719
Mortgage banking income		4,668		7,093		11,313		36,091
Increase in cash surrender value of life insurance		279		277		770		782
Commission income		247		177		564		522
Real estate lease income		119		155		353		451
Net gain on premises and equipment		—		—		29		—
Income from tax credit investment		—		—		—		10
Gain from repurchase of subordinated debt		660		—		660		—
Other income		131		144		1,076		831
Total noninterest income		7,196		10,033		19,900		46,696

NONINTEREST EXPENSE
Compensation and benefits		11,138		15,215		32,230		49,982
Occupancy and equipment		2,277		2,069		6,057		6,261
Data processing		1,020		679		2,780		1,957
Advertising		536		806		1,473		2,600
Professional fees		1,360		1,410		2,931		3,973
FDIC insurance premiums		488		121		1,165		346
Other operating expenses		2,146		2,535		7,839		8,029
Total noninterest expense		18,965		22,835		54,475		73,148
Income before income taxes		2,655		2,577		9,666		16,347
Income tax expense (benefit)		331		(61)		747		2,369
Net Income	$	2,324	$	2,638	$	8,919	$	13,978

Net income per share:
Basic	$	0.34	$	0.37	$	1.30	$	1.97
Diluted	$	0.34	$	0.37	$	1.29	$	1.95

Weighted average shares outstanding:
Basic		6,816,608		7,073,204		6,858,739		7,082,034
Diluted		6,819,748		7,145,288		6,893,766		7,166,632

Dividends per share	$	0.14	$	0.13	$	0.41	$	0.38

See notes to condensed consolidated financial statements.

-4-

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	Three Months Ended				Nine Months Ended
	June 30,				June 30,
(In thousands)	2023		2022		2023		2022

Net Income	$	2,324	$	2,638	$	8,919	$	13,978

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		(4,819)		(13,732)		11,458		(26,689)
Income tax (expense) benefit		1,026		2,884		(2,393)		5,605
Net of tax amount		(3,793)		(10,848)		9,065		(21,084)

Less: reclassification adjustment for realized (gains) losses included in net income		540		(476)		540		(476)
Income tax (expense) benefit		(113)		100		(113)		100
Net of tax amount		427		(376)		427		(376)

Less: reclassification adjustment for other-than-temporary impairment loss on securities included in net income		—		—		28		—
Income tax benefit		—		—		(6)		—
Net of tax amount		—		—		22		—

Other Comprehensive Income (Loss)		(3,366)		(11,224)		9,514		(21,460)

Comprehensive Income (Loss)	$	(1,042)	$	(8,586)	$	18,433	$	(7,482)

See notes to condensed consolidated financial statements.

-5-

Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)


							Accumulated
							Other		Unearned
	Common		Additional		Retained		Comprehensive		Stock		Treasury
(In thousands, except share and per share data)	Stock		Paid-in Capital		Earnings		Income (Loss)		Compensation		Stock		Total

Three Months Ended June 30, 2022:
Balances at April 1, 2022	$	78	$	27,076	$	159,732	$	(1,336)	$	(1,180)	$	(4,417)	$	179,953

Net income		—		—		2,638		—		—		—		2,638

Other comprehensive loss		—		—		—		(11,224)		—		—		(11,224)

Common stock dividends - $0.13 per share		—		—		(932)		—		—		—		(932)

Stock compensation expense		—		82		—		—		105		—		187

Purchase of 59,120 treasury shares		—		—		—		—		—		(1,409)		(1,409)

Balances at June 30, 2022	$	78	$	27,158	$	161,438	$	(12,560)	$	(1,075)	$	(5,826)	$	169,213

Three Months Ended June 30, 2023:
Balances at April 1, 2023	$	78	$	27,365	$	166,652	$	(14,199)	$	(1,211)	$	(

Part I	Financial Information	Page

	Item 1. Financial Statements

	Condensed Consolidated Balance Sheets as of June 30, 2023 (unaudited) and September 30, 2022	3

	Condensed Consolidated Statements of Income for the three and nine months ended June 30, 2023 and 2022 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended June 30, 2023 and 2022 (unaudited)	5

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended June 30, 2023 and 2022 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2023 and 2022 (unaudited)	7

	Notes to Condensed Consolidated Financial Statements (unaudited)	8-50

	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	51-60

	Item 3. Quantitative and Qualitative Disclosures About Market Risk	61-62

	Item 4. Controls and Procedures	63

Part II	Other Information

	Item 1. Legal Proceedings	65

	Item 1A. Risk Factors	66

	Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	67

	Item 3. Defaults Upon Senior Securities	67

	Item 4. Mine Safety Disclosures	67

	Item 5. Other Information	67

	Item 6. Exhibits	68

Signatures		69