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, 2023

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 2, 2024 was 6,883,160.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

		Page
Part I	Financial Information
	Item 1. Financial Statements
	Condensed Consolidated Balance Sheets as of December 31, 2023 (unaudited) and September 30, 2023	3
	Condensed Consolidated Statements of Income for the three months ended December 31, 2023 and 2022 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income for the three months ended December 31, 2023 and 2022 (unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended December 31, 2023 and 2022 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	8- 52
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	53-58
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	59-60
	Item 4. Controls and Procedures	61
Part II	Other Information
	Item 1. Legal Proceedings	63
	Item 1A. Risk Factors	63
	Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, And Issuer Purchases of Equity Securities	64
	Item 3. Defaults Upon Senior Securities	64
	Item 4. Mine Safety Disclosures	64
	Item 5. Other Information	64
	Item 6. Exhibits	65
Signatures		66

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PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	December 31,		September 30,
(In thousands, except share and per share data)	2023		2023
ASSETS
Cash and due from banks	$	17,522	$	18,014
Interest-bearing deposits with banks		15,844		12,831
Total cash and cash equivalents		33,366		30,845
Interest-bearing time deposits		490		490
Debt securities available for sale, at fair value		245,538		227,739
Debt securities held to maturity		1,263		1,300
Loans held for sale, residential mortgage, at fair value		4,056		24,692
Loans held for sale, Small Business Administration		18,810		21,163
Loans, net of allowance for credit losses of $18,789 at December 31, 2023 and $16,900 at September 30, 2023 *		1,841,953		1,770,243
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		24,987		24,939
Premises and equipment, net		27,712		27,861
Other real estate owned, held for sale		647		677
Accrued interest receivable:
Loans		8,676		7,809
Securities		2,665		2,352
Cash surrender value of life insurance		46,556		46,226
Goodwill		9,848		9,848
Core deposit intangibles		520		561
Residential mortgage loan servicing rights, at fair value		709		59,768
Nonresidential mortgage loan servicing rights		95		101
SBA loan servicing rights		2,907		2,950
Other assets		37,294		29,290
Total Assets	$	2,308,092	$	2,288,854
LIABILITIES
Deposits:
Noninterest-bearing	$	202,769	$	242,237
Interest-bearing		1,481,077		1,439,557
Total deposits		1,683,846		1,681,794
Federal Home Loan Bank borrowings		356,699		363,183
Other borrowings		48,484		48,444
Accrued interest payable		10,405		8,926
Advance payments by borrowers for taxes and insurance		512		1,027
Reserve for unfunded lending commitments		1,882		—
Accrued expenses and other liabilities		41,741		34,499
Total Liabilities		2,143,569		2,137,873
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 7,797,146 shares at December 31, 2023 (7,778,471 at September 30, 2023); outstanding 6,883,160 shares at December 31, 2023 (6,867,121 shares at September 30, 2023)		78		78
Additional paid-in capital		27,319		26,986
Retained earnings - substantially restricted		163,753		166,306
Accumulated other comprehensive loss		(13,606)		(29,587)
Unearned stock compensation		(1,194)		(1,015)
Less treasury stock, at cost - 861,350 shares (786,640 shares at September 30, 2022)		(11,827)		(11,787)
Total Stockholders’ Equity		164,523		150,981
Total Liabilities and Stockholders’ Equity	$	2,308,092	$	2,288,854

* Effective October 1, 2023, ASU 2016-13 was adopted; therefore Current Expected Credit Loss (CECL) methodology was used at December 31, 2023. Previous incurred loss methodology was used at September 30, 2023.

See notes to condensed consolidated financial statements.

-3-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
	December 31,
(In thousands, except share and per share data)	2023		2022
INTEREST INCOME
Loans, including fees	$	26,057	$	20,185
Securities:
Taxable		942		955
Tax-exempt		1,333		1,979
Dividend income		74		220
Interest-bearing deposits with banks		249		144
Total interest income		28,655		23,483
INTEREST EXPENSE
Deposits		9,989		4,158
Federal Home Loan Bank borrowings		3,769		1,919
Other borrowings		784		1,145
Total interest expense		14,542		7,222
Net interest income		14,113		16,261
Provision for credit losses		412		984
Net interest income after provision for credit losses		13,701		15,277
NONINTEREST INCOME
Service charges on deposit accounts		473		558
ATM and interchange fees		449		739
Net unrealized gain on equity securities		38		14
Other than temporary impairment loss on securities		—		(28)
Net gain on sales of loans, Small Business Administration		834		775
Mortgage banking income		89		2,496
Increase in cash surrender value of life insurance		329		225
Commission income		222		128
Real estate lease income		115		117
Other income		233		164
Total noninterest income		2,782		5,188
NONINTEREST EXPENSE
Compensation and benefits		9,663		10,685
Occupancy and equipment		2,041		1,860
Data processing		793		777
Advertising		318		418
Professional fees		1,079		793
FDIC insurance premiums		486		308
Net loss on other real estate owned		6		—
Other operating expenses		1,653		2,670
Total noninterest expense		16,039		17,511
Net income before income taxes		444		2,954
Income tax expense (benefit)		(476)		83
Net Income	$	920	$	2,871
Net income per share:
Basic	$	0.13	$	0.42
Diluted	$	0.13	$	0.41
Weighted average shares outstanding:
Basic		6,823,948		6,915,909
Diluted		6,839,704		6,972,055
Dividends per share	$	0.14	$	0.13

See notes to condensed consolidated financial statements.

-4-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended
	December 31,
(In thousands)	2023		2022
Net Income	$	920	$	2,871
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains on securities available for sale:
Unrealized holding gains arising during the period		20,231		10,199
Income tax expense		(4,250)		(2,142)
Net of tax amount		15,981		8,057
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		15,981		8,079
Comprehensive Income	$	16,901	$	10,950

See notes to condensed consolidated financial statements.

-5-

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
Balances at October 1, 2022	$	78	$	26,770	$	161,927	$	(27,079)	$	(969)	$	(9,162)	$	151,565
Net income		—		—		2,871		—		—		—		2,871
Other comprehensive income		—		—		—		8,079		—		—		8,079
Common stock dividends - $0.13 per share		—		—		(908)		—		—		—		(908)
Restricted stock grants - 22,000 shares		—		495		—		—		(495)		—		—
Stock compensation expense		—		82		—		—		103		—		185
Purchase of 74,710 treasury shares		—		—		—		—		—		(1,648)		(1,648)
Balances at December 31, 2022	$	78	$	27,347	$	163,890	$	(19,000)	$	(1,361)	$	(10,810)	$	160,144
Balances at October 1, 2023	$	78	$	26,986	$	166,306	$	(29,587)	$	(1,015)	$	(11,787)	$	150,981
Cumulative effect adjustment for adoption of ASU 2016-13, net of tax		—		—		(2,510)		—		—		—		(2,510)
Balances at October 1, 2023, adjusted		78		26,986		163,796		(29,587)		(1,015)		(11,787)		148,471
Net income		—		—		920		—		—		—		920
Distribution to Q2 minority interest		—		(18)		—		—		—		—		(18)
Other comprehensive income		—		—		—		15,981		—		—		15,981
Common stock dividends - $0.14 per share		—		—		(963)		—		—		—		(963)
Restricted stock grants - 19,475 shares		—		294		—		—		(294)		—		—
Restricted stock forfeitures - 800 shares		—		(18)		—		—		18		—		—
Stock compensation expense		—		75		—		—		97		—		172
Purchase of 2,636 treasury shares		—		—		—		—		—		(40)		(40)
Balances at December 31, 2023	$	78	$	27,319	$	163,753	$	(13,606)	$	(1,194)	$	(11,827)	$	164,523

See notes to condensed consolidated financial statements.

-6-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
	December 31,
(In thousands)	2023	2022