First Savings Financial Group, Inc. [FSFG] Filings

10-Q 1 fsfg-20240630x10q.htm 10-Q

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, 2024


	☐	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, 2024 was 6,883,656.

Table of Contents

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX


		Page
Part I	Financial Information

	Item 1. Financial Statements

	Condensed Consolidated Balance Sheets as of June 30, 2024 (unaudited) and September 30, 2023	3

	Condensed Consolidated Statements of Income for the three and nine months ended June 30, 2024 and 2023 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended June 30, 2024 and 2023 (unaudited)	5

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended June 30, 2024 and 2023 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 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-

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)	2024		2023
ASSETS
Cash and due from banks	$	20,414	$	18,014
Interest-bearing deposits with banks		22,009		12,831
Total cash and cash equivalents		42,423		30,845

Interest-bearing time deposits		490		490
Debt securities available for sale, at fair value, net of allowance for credit losses of $107 at June 30, 2024		237,651		227,739
Debt securities held to maturity		1,134		1,300
Loans held for sale, residential mortgage, at fair value		3,077		24,692
Loans held for sale, residential home equity lines of credit		108,795		—
Loans held for sale, Small Business Administration		13,987		21,163
Loans, net of allowance for credit losses of $19,789 at June 30, 2024 and $16,900 at September 30, 2023		1,826,980		1,770,243
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		24,986		24,939
Premises and equipment, net		26,715		27,861
Other real estate owned, held for sale		647		677
Accrued interest receivable:
Loans		9,380		7,809
Securities		2,634		2,352
Cash surrender value of life insurance		47,242		46,226
Goodwill		9,848		9,848
Core deposit intangibles		438		561
Residential mortgage loan servicing rights, at fair value		—		59,768
Nonresidential mortgage loan servicing rights		72		101
SBA loan servicing rights		2,788		2,950
Other assets		34,204		29,290

Total Assets	$	2,393,491	$	2,288,854

LIABILITIES
Deposits:
Noninterest-bearing	$	201,854	$	242,237
Interest-bearing		1,510,294		1,439,557
Total deposits		1,712,148		1,681,794

Federal Home Loan Bank borrowings		425,000		363,183
Other borrowings		48,563		48,444
Accrued interest payable		8,882		8,926
Advance payments by borrowers for taxes and insurance		592		1,027
Reserve for unfunded lending commitments		1,781		—
Accrued expenses and other liabilities		28,525		34,499
Total Liabilities		2,225,491		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 7,800,101 shares at June 30, 2024 (7,778,471 at September 30, 2023); outstanding 6,883,656 shares at June 30, 2024 (6,867,121 shares at September 30, 2023)		78		78
Additional paid-in capital		27,514		26,986
Retained earnings - substantially restricted		170,688		166,306
Accumulated other comprehensive loss		(17,415)		(29,587)
Unearned stock compensation		(999)		(1,015)
Less treasury stock, at cost - 916,445 shares (911,350 shares at September 30, 2023)		(11,866)		(11,787)
Total Stockholders’ Equity		168,000		150,981

Total Liabilities and Stockholders’ Equity	$	2,393,491	$	2,288,854

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)	2024		2023		2024		2023

INTEREST INCOME
Loans, including fees	$	28,018	$	23,184	$	81,094	$	64,666
Securities:
Taxable		918		984		2,784		2,896
Tax-exempt		1,315		1,940		3,961		5,920
Dividend income		519		423		1,092		1,007
Interest-bearing deposits with banks		324		267		834		603
Total interest income		31,094		26,798		89,765		75,092

INTEREST EXPENSE
Deposits		12,740		7,791		35,276		18,214
Federal Home Loan Bank borrowings		3,021		3,446		9,088		8,280
Other borrowings		799		696		2,416		2,560
Total interest expense		16,560		11,933		46,780		29,054

Net interest income		14,534		14,865		42,985		46,038

Provision for credit losses - loans		501		441		1,684		1,797
Provision (credit) for unfunded lending commitments		158		—		(159)		—
Provision for credit losses - securities		84		—		107		—

Net interest income after provision for credit losses		13,791		14,424		41,353		44,241

NONINTEREST INCOME
Service charges on deposit accounts		538		509		1,398		1,538
ATM and interchange fees		593		615		1,627		1,940
Net loss on sales of available for sale securities		—		(540)		—		(540)
Net unrealized gain on equity securities		419		11		463		46
Other than temporary impairment loss on securities		—		—		—		(28)
Net gain on sales of loans, Small Business Administration		581		497		2,366		2,179
Mortgage banking income		49		4,668		191		11,313
Increase in cash surrender value of life insurance		353		279		1,015		770
Commission income		220		247		662		564
Real estate lease income		154		119		384		353
Net gain on premises and equipment		—		—		120		29
Gain from repurchase of subordinated debt		—		660		—		660
Other income		289		131		1,462		1,076
Total noninterest income		3,196		7,196		9,688		19,900

NONINTEREST EXPENSE
Compensation and benefits		7,480		11,138		24,732		32,230
Occupancy and equipment		1,624		2,277		5,338		6,057
Data processing		685		1,020		1,994		2,780
Advertising		265		536		795		1,473
Professional fees		575		1,360		2,155		2,931
FDIC insurance premiums		601		488		1,715		1,165
Net loss on other real estate owned		2		—		10		—
Other operating expenses		1,199		2,146		3,509		7,839
Total noninterest expense		12,431		18,965		40,248		54,475
Net income before income taxes		4,556		2,655		10,793		9,666
Income tax expense		483		331		873		747
Net Income	$	4,073	$	2,324	$	9,920	$	8,919

Net income per share:
Basic	$	0.60	$	0.34	$	1.45	$	1.30
Diluted	$	0.60	$	0.34	$	1.45	$	1.29

Weighted average shares outstanding:
Basic		6,832,452		6,816,608		6,829,490		6,858,739
Diluted		6,834,784		6,819,748		6,851,145		6,893,766

Dividends per share	$	0.15	$	0.14	$	0.44	$	0.41

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)	2024		2023		2024		2023

Net Income	$	4,073	$	2,324	$	9,920	$	8,919

OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		(393)		(4,819)		15,333		11,458
Income tax (expense) benefit		59		1,026		(3,242)		(2,393)
Net of tax amount		(334)		(3,793)		12,091		9,065

Less: reclassification adjustment for provision for credit losses on securities included in net income		84		—		107		—
Income tax expense		(21)		—		(26)		—
Net of tax amount		63		—		81		—

Less: reclassification adjustment for realized losses included in net income		—		540		—		540
Income tax benefit		—		(113)		—		(113)
Net of tax amount		—		427		—		427

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)		(271)		(3,366)		12,172		9,514

Comprehensive Income (Loss)	$	3,802	$	(1,042)	$	22,092	$	18,433

See notes to condensed consolidated financial statements.

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Table of Contents

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Unaudited)

First Savings Financial Group, Inc. [FSFG] Filings
10-Q	[2024-08-09]
10-Q	[2024-05-09]
10-Q	[2024-02-09]
10-K	[2023-12-20]
10-Q	[2023-08-09]
10-Q	[2023-05-10]
10-Q	[2023-02-09]
10-K	[2022-12-14]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-Q	[2022-02-09]
10-K	[2021-12-14]
10-Q	[2021-08-13]
10-Q	[2021-05-13]
10-Q	[2021-02-11]
10-K	[2020-12-17]
10-Q	[2020-08-10]
10-Q	[2020-05-18]
10-Q	[2020-02-10]
10-K	[2019-12-16]
10-Q	[2019-08-09]
10-Q	[2019-05-10]
10-Q	[2019-02-08]
10-K	[2018-12-14]
10-Q	[2018-08-09]
10-Q	[2018-05-10]
10-Q	[2018-02-09]
10-K	[2017-12-14]
10-Q	[2017-08-14]
10-Q	[2017-05-15]
10-Q	[2017-02-14]
10-K	[2016-12-29]
10-Q	[2016-08-15]
10-Q	[2016-05-16]
10-Q	[2016-02-16]
10-K	[2015-12-29]
10-Q	[2015-08-14]
10-Q	[2015-05-15]
10-Q	[2015-02-17]
10-K	[2014-12-29]
10-Q	[2014-08-14]
10-Q	[2014-05-15]
10-Q	[2014-02-14]
10-K	[2013-12-30]
10-Q	[2013-08-14]
10-Q	[2013-05-15]
10-Q	[2013-02-14]
10-K	[2013-01-04]
10-Q	[2012-08-14]
10-Q	[2012-05-15]
10-Q	[2012-02-14]