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, 2024

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 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 March 31, 2024 (unaudited) and September 30, 2023	3
	Condensed Consolidated Statements of Income for the three and six months ended March 31, 2024 and 2023 (unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income for the three and six months ended March 31, 2024 and 2023 (unaudited)	5
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended March 31, 2024 and 2023 (unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the six months ended March 31, 2024 and 2023 (unaudited)	7
	Notes to Condensed Consolidated Financial Statements (unaudited)	8- 57
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	58-66
	Item 3. Quantitative and Qualitative Disclosures About Market Risk	67
	Item 4. Controls and Procedures	69
Part II	Other Information
	Item 1. Legal Proceedings	71
	Item 1A. Risk Factors	71
	Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, And Issuer Purchases of Equity Securities	72
	Item 3. Defaults Upon Senior Securities	72
	Item 4. Mine Safety Disclosures	72
	Item 5. Other Information	72
	Item 6. Exhibits	73
Signatures		74

-2-

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,		September 30,
(In thousands, except share and per share data)	2024		2023
ASSETS
Cash and due from banks	$	16,114	$	18,014
Interest-bearing deposits with banks		46,855		12,831
Total cash and cash equivalents		62,969		30,845
Interest-bearing time deposits		490		490
Debt securities available for sale, at fair value, net of allowance for credit losses of $23 at March 31, 2024		238,972		227,739
Debt securities held to maturity		1,170		1,300
Loans held for sale, residential mortgage, at fair value		2,979		24,692
Loans held for sale, Small Business Administration		16,129		21,163
Loans, net of allowance for credit losses of $19,392 at March 31, 2024 and $16,900 at September 30, 2023		1,882,458		1,770,243
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		24,986		24,939
Premises and equipment, net		27,177		27,861
Other real estate owned, held for sale		647		677
Accrued interest receivable:
Loans		8,951		7,809
Securities		1,923		2,352
Cash surrender value of life insurance		46,888		46,226
Goodwill		9,848		9,848
Core deposit intangibles		479		561
Residential mortgage loan servicing rights, at fair value		—		59,768
Nonresidential mortgage loan servicing rights		78		101
SBA loan servicing rights		2,950		2,950
Other assets		35,889		29,290
Total Assets	$	2,364,983	$	2,288,854
LIABILITIES
Deposits:
Noninterest-bearing	$	196,239	$	242,237
Interest-bearing		1,591,207		1,439,557
Total deposits		1,787,446		1,681,794
Federal Home Loan Bank borrowings		315,000		363,183
Other borrowings		48,523		48,444
Accrued interest payable		11,281		8,926
Advance payments by borrowers for taxes and insurance		867		1,027
Reserve for unfunded lending commitments		1,623		—
Accrued expenses and other liabilities		35,187		34,499
Total Liabilities		2,199,927		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 March 31, 2024 (7,778,471 at September 30, 2023); outstanding 6,883,160 shares at March 31, 2024 (6,867,121 shares at September 30, 2023)		78		78
Additional paid-in capital		27,397		26,986
Retained earnings - substantially restricted		167,648		166,306
Accumulated other comprehensive loss		(17,144)		(29,587)
Unearned stock compensation		(1,096)		(1,015)
Less treasury stock, at cost - 913,986 shares (911,350 shares at September 30, 2023)		(11,827)		(11,787)
Total Stockholders’ Equity		165,056		150,981
Total Liabilities and Stockholders’ Equity	$	2,364,983	$	2,288,854

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				Six Months Ended
	March 31,				March 31,
(In thousands, except share and per share data)	2024		2023		2024		2023
INTEREST INCOME
Loans, including fees	$	27,019	$	21,297	$	53,076	$	41,482
Securities:
Taxable		924		957		1,866		1,912
Tax-exempt		1,313		2,001		2,646		3,980
Dividend income		499		364		573		584
Interest-bearing deposits with banks		261		192		510		336
Total interest income		30,016		24,811		58,671		48,294
INTEREST EXPENSE
Deposits		12,547		6,265		22,536		10,423
Federal Home Loan Bank borrowings		2,298		2,915		6,067		4,834
Other borrowings		833		719		1,617		1,864
Total interest expense		15,678		9,899		30,220		17,121
Net interest income		14,338		14,912		28,451		31,173
Provision for credit losses - loans		713		372		1,183		1,356
Credit for unfunded lending commitments		(259)		—		(317)		—
Provision for credit losses - securities		23		—		23		—
Net interest income after provision for credit losses		13,861		14,540		27,562		29,817
NONINTEREST INCOME
Service charges on deposit accounts		387		471		860		1,029
ATM and interchange fees		585		586		1,034		1,325
Net unrealized gain on equity securities		6		21		44		35
Other than temporary impairment loss on securities		—		—		—		(28)
Net gain on sales of loans, Small Business Administration		951		907		1,785		1,682
Mortgage banking income		53		4,149		142		6,645
Increase in cash surrender value of life insurance		333		266		662		491
Commission income		220		189		442		317
Real estate lease income		115		117		230		234
Net gain on premises and equipment		120		29		120		29
Other income		940		781		1,173		945
Total noninterest income		3,710		7,516		6,492		12,704
NONINTEREST EXPENSE
Compensation and benefits		7,589		10,407		17,252		21,092
Occupancy and equipment		1,673		1,920		3,714		3,780
Data processing		516		983		1,309		1,760
Advertising		212		519		530		937
Professional fees		501		778		1,580		1,571
FDIC insurance premiums		628		369		1,114		677
Net loss on other real estate owned		2		—		8		—
Other operating expenses		657		3,023		2,310		5,693
Total noninterest expense		11,778		17,999		27,817		35,510
Net income before income taxes		5,793		4,057		6,237		7,011
Income tax expense		866		333		390		416
Net Income	$	4,927	$	3,724	$	5,847	$	6,595
Net income per share:
Basic	$	0.72	$	0.54	$	0.86	$	0.96
Diluted	$	0.72	$	0.54	$	0.85	$	0.95
Weighted average shares outstanding:
Basic		6,832,130		6,842,897		6,828,017		6,879,805
Diluted		6,859,611		6,881,496		6,849,928		6,926,277
Dividends per share	$	0.15	$	0.14	$	0.29	$	0.27

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				Six Months Ended
	March 31,				March 31,
(In thousands)	2024		2023		2024		2023
Net Income	$	4,927	$	3,724	$	5,847	$	6,595
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		(4,526)		6,077		15,704		16,276
Income tax (expense) benefit		970		(1,276)		(3,279)		(3,418)
Net of tax amount		(3,556)		4,801		12,425		12,858
Less: reclassification adjustment for provision for credit losses on securities included in net income		23		—		23		—
Income tax expense		(5)		—		(5)		—
Net of tax amount		18		—		18		—
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)		(3,538)		4,801		12,443		12,880
Comprehensive Income	$	1,389	$	8,525	$	18,290	$	19,475

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

Three Months Ended March 31, 2023:

'Balances at January 1, 2023

$

78

$

27,347

$

163,890

$

(19,000)

$

(1,361)

$

(