First Savings Financial Group, Inc. [FSFG] Filings

10-Q 1 fsfg-20230331x10q.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 March 31, 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 May 2, 2023 was 6,865,921.

Table of Contents

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

Part I	Financial Information	Page

	Item 1. Financial Statements

	Condensed Consolidated Balance Sheets as of March 31, 2023 and September 30, 2022 (unaudited)	3

	Condensed Consolidated Statements of Income for the three and six months ended March 31, 2023 and 2022 (unaudited)	4

	Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended March 31, 2023 and 2022 (unaudited)	5

	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended March 31, 2023 and 2022 (unaudited)	6

	Condensed Consolidated Statements of Cash Flows for the six months ended March 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	53-61

	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	66

	Item 1A. Risk Factors	67

	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	68

	Item 3. Defaults Upon Senior Securities	68

	Item 4. Mine Safety Disclosures	68

	Item 5. Other Information	68

	Item 6. Exhibits	68

Signatures		69

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Table of Contents

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)	2023		2022
ASSETS
Cash and due from banks	$	17,955	$	18,312
Interest-bearing deposits with banks		23,855		23,353
Total cash and cash equivalents		41,810		41,665

Interest-bearing time deposits		1,626		1,613
Debt securities available for sale, at fair value		334,889		316,517
Debt securities held to maturity		1,428		1,558

Loans held for sale, residential mortgage, at fair value		36,257		38,579
Loans held for sale, Small Business Administration		12,526		21,883
Loans, net of allowance for loan losses of $16,458 at March 31, 2023 and $15,360 at September 30, 2022		1,598,440		1,474,544
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		23,589		20,004
Premises and equipment, net		27,632		27,100
Other real estate owned, held for sale		203		203
Accrued interest receivable:
Loans		6,537		5,379
Securities		3,336		2,953
Cash surrender value of life insurance		45,637		45,145
Goodwill		9,848		9,848
Core deposit intangibles		668		775
Residential mortgage loan servicing rights, at fair value		61,194		63,263
Nonresidential mortgage loan servicing rights		124		141
SBA loan servicing rights		3,727		3,790
Other assets		30,135		18,765

Total Assets	$	2,239,606	$	2,093,725

LIABILITIES
Deposits:
Noninterest-bearing	$	318,869	$	340,172
Interest-bearing		1,224,013		1,175,662
Total deposits		1,542,882		1,515,834

Federal Home Loan Bank borrowings		437,795		307,303
Other borrowings		50,330		88,206
Accrued interest payable		2,654		1,302
Advance payments by borrowers for taxes and insurance		1,093		1,207
Accrued expenses and other liabilities		37,954		28,308
Total Liabilities		2,072,708		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 (7,757,271 at September 30, 2022); outstanding 6,865,921 shares (6,970,631 shares at September 30, 2022)		78		78
Additional paid-in capital		27,365		26,770
Retained earnings - substantially restricted		166,652		161,927
Accumulated other comprehensive loss		(14,199)		(27,079)
Unearned stock compensation		(1,211)		(969)
Less treasury stock, at cost - 911,350 shares (786,640 shares at September 30, 2022)		(11,787)		(9,162)
Total Stockholders’ Equity		166,898		151,565

Total Liabilities and Stockholders’ Equity	$	2,239,606	$	2,093,725

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 INCOME

(Unaudited)


	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands, except share and per share data)	2023		2022		2023		2022

INTEREST INCOME
Loans, including fees	$	21,297	$	13,981	$	41,482	$	27,983
Securities:
Taxable		957		420		1,912		825
Tax-exempt		2,001		1,241		3,980		2,433
Dividend income		364		146		584		295
Interest-bearing deposits with banks		192		13		336		27
Total interest income		24,811		15,801		48,294		31,563

INTEREST EXPENSE
Deposits		6,265		738		10,423		1,549
Federal Home Loan Bank borrowings		2,915		681		4,834		1,411
Other borrowings		719		369		1,864		687
Total interest expense		9,899		1,788		17,121		3,647

Net interest income		14,912		14,013		31,173		27,916
Provision (credit) for loan losses		372		(30)		1,356		496

Net interest income after provision for loan losses		14,540		14,043		29,817		27,420

NONINTEREST INCOME
Service charges on deposit accounts		471		433		1,029		867
ATM and interchange fees		586		594		1,325		1,273
Net unrealized gain (loss) on equity securities		21		(16)		35		—
Other than temporary impairment loss on securities		—		—		(28)		—
Net gain on sales of loans, Small Business Administration		907		1,327		1,682		2,963
Net gain on sales of loans, single tenant net lease		—		557		—		719
Mortgage banking income		4,149		16,254		6,645		28,998
Increase in cash surrender value of life insurance		266		251		491		505
Commission income		189		157		317		345
Real estate lease income		117		148		234		296
Net gain on premises and equipment		29		—		29		—
Income from tax credit investment		—		—		—		10
Other income		781		367		945		687
Total noninterest income		7,516		20,072		12,704		36,663

NONINTEREST EXPENSE
Compensation and benefits		10,407		17,476		21,092		34,767
Occupancy and equipment		1,920		2,079		3,780		4,192
Data processing		983		645		1,760		1,278
Advertising		519		1,002		937		1,794
Professional fees		778		1,374		1,571		2,563
FDIC insurance premiums		369		110		677		225
Other operating expenses		3,023		2,775		5,693		5,494
Total noninterest expense		17,999		25,461		35,510		50,313
Income before income taxes		4,057		8,654		7,011		13,770
Income tax expense		333		1,619		416		2,430
Net Income	$	3,724	$	7,035	$	6,595	$	11,340

Net income per share:
Basic	$	0.54	$	0.99	$	0.96	$	1.60
Diluted	$	0.54	$	0.98	$	0.95	$	1.58

Weighted average shares outstanding:
Basic		6,842,897		7,076,355		6,879,805		7,086,739
Diluted		6,881,496		7,156,229		6,926,277		7,173,710

Dividends per share	$	0.14	$	0.13	$	0.27	$	0.25

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 COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	Three Months Ended				Six Months Ended
	March 31,				March 31,
(In thousands)	2023		2022		2023		2022

Net Income	$	3,724	$	7,035	$	6,595	$	11,340

OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		6,077		(13,361)		16,276		(12,957)
Income tax (expense) benefit		(1,276)		2,806		(3,418)		2,721
Net of tax amount		4,801		(10,555)		12,858		(10,236)

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)		4,801		(10,555)		12,880		(10,236)

Comprehensive Income (Loss)	$	8,525	$	(3,520)	$	19,475	$	1,104

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)


							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, 2022:
Balances at January 1, 2022	$	78	$	26,995	$	153,630	$	9,219	$	(1,285)	$	(4,417)	$	184,220

Net income		—		—		7,035		—		—		—		7,035

Other comprehensive loss		—		—		—		(10,555)		—		—		(10,555)

Common stock dividends - $0.13 per share		—		—		(933)		—		—		—		(933)

Stock compensation expense		—		81		—		—		105		—		186

Balances at March 31, 2022	$	78	$	27,076	$	159,732	$	(1,336)	$	(1,180)	$	(4,417)	$	179,953

Three Months Ended March 31, 2023:
Balances at January 1, 2023	$	78	$	27,347	$	163,890	$	(19,000)	$	(1,361)	$	(10,810)	$	160,144

Net income		—		—		3,724		—

First Savings Financial Group, Inc. [FSFG] Filings
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]