Form 8-K - Current report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 31, 2023

FIRST SAVINGS FINANCIAL GROUP, INC.

(Exact Name of Registrant as Specified in Charter)

Indiana	001-34155	37-1567871
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

702 North Shore Drive, Suite 300, Jeffersonville, Indiana	47130
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (812) 283-0724

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01 per share		FSFG		The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 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. ¨

Item 2.02.

Results of Operations and Financial Condition.

On October 31, 2023, First Savings Financial Group, Inc. announced its financial results for the three and twelve months ended September 30, 2023. The press release announcing the financial results for the three and twelve months ended September 30, 2023 is furnished as Exhibit 99.1 and incorporated herein by reference.

Item 9.01.

Financial Statements and Exhibits.

(a)

Not applicable.

(b)

Not applicable.

(c)

Not applicable.

(d)

Exhibits

99.1

Press release dated October 31, 2023

101

Cover Page Interactive Data File (formatted in Inline XBRL)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	FIRST SAVINGS FINANCIAL GROUP, INC.


Date: November 6, 2023	By:	/s/ Tony A. Schoen
	Tony A. Schoen
	Chief Financial Officer

Exhibit 99.1

FIRST SAVINGS FINANCIAL GROUP, INC. REPORTS FINANCIAL RESULTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023

Jeffersonville, Indiana — October 31, 2023. First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $8.2 million, or $1.19 per diluted share, for the year ended September 30, 2023 compared to net income of $15.4 million, or $2.15 per diluted share, for the year ended September 30, 2022. Excluding nonrecurring items, the Company reported net income of $12.7 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $1.85 (non-GAAP measure)⁽¹⁾ for the year ended September 30, 2023; compared to net income of $17.1 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $2.40 (non-GAAP measure)⁽¹⁾ for the year ended September 30, 2022.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “As we navigated the challenging environment for the banking industry during fiscal 2023, we focused on reducing balance sheet and operating inefficiencies, risks that could result in earnings volatility, and complexity of the organization, particularly in the fourth fiscal quarter. Many of these measures are highlighted below and quantified in the included table reconciling GAAP and non-GAAP financial measures. In addition to these repositioning measures, we focused on core banking; asset quality; selective high-quality lending; deposit growth; building the SBA lending pipeline; and improvement of liquidity, capital and interest rate sensitivity positions. We believe the measures taken will deliver shareholder value and we’ll continue to evaluate options that will further position the Company for future success.”

Recent Actions to Reduce Inefficiencies and Potential Earnings Volatility

In the June 2023 quarter ended, utilized gain on repurchase of subordinated debt as an opportunity to sell $78.5 million of available for sale securities that were yielding less than the marginal cost of funding.

In August 2023, converted the Bank’s data processing system to FIS Horizon.

In September 2023, entered into a letter of intent to sell the Bank’s residential mortgage servicing rights portfolio with a close anticipated for November 30, 2023.

In September 2023, dissolved First Savings Insurance Risk Management, Inc., the Company’s captive insurance subsidiary.

In October 2023, announced that the Bank will cease national originate-to-sell mortgage banking operations during the quarter ending December 31, 2023.

(1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.

Results of Operations for the Fiscal Years Ended September 30, 2023 and 2022

Net interest income increased $922,000, or 1.5%, to $61.6 million for the year ended September 30, 2023 as compared to the prior year. The increase in net interest income was due to a $32.0 million increase in interest income, partially offset by a $31.1 million increase in interest expense. Interest income increased due to an increase in the average balance of interest-earning assets of $385.8 million, from $1.67 billion for 2022 to $2.05 billion for 2023, and an increase in the weighted-average tax-equivalent yield, from 4.35% for 2022 to 5.13% for 2023. The increase in the average balance of interest-earning assets was primarily due to an increase in the average balance of loans of $322.9 million and an increase in the average balance of investment securities of $67.2 million. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $390.6 million, from $1.32 billion for 2022 to $1.71 billion for 2023, and an increase in the average cost of interest-bearing liabilities, from 0.78% for 2022 to 2.44% for 2023. The increase in the average cost of interest-bearing liabilities for 2023 was due primarily to higher rates paid for FHLB borrowings, brokered deposits, and money market deposit accounts primarily as a result of increased market interest rates and a $91.4 million migration of deposit balances from noninterest-bearing to interest-bearing.

The Company recognized a provision for loan losses of $2.6 million for the year ended September 30, 2023 due primarily to loan portfolio growth, compared to a provision for loan losses of $1.9 million for the prior year. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, increased $3.1 million from $10.9 million at September 30, 2022 to $13.9 million at September 30, 2023. The Company recognized net charge-offs of $1.1 million for the year ended September 30, 2023, of which $873,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $849,000 in 2022, of which $733,000 was related to unguaranteed portions of SBA loans.

Noninterest income decreased $25.9 million for the year ended September 30, 2023 as compared to the prior year. The decrease was due primarily to a $24.0 million decrease in mortgage banking income in 2023 compared to the same period in 2022. The decrease in mortgage banking income was primarily due to lower origination and sales volume in 2023 compared to 2022. Mortgage loans originated for sale were $587.7 million in the year ended September 30, 2023 as compared to $1.61 billion for the prior year.

Noninterest expense decreased $16.5 million for the year ended September 30, 2023 as compared to the prior year. The decrease was due primarily to a decrease in compensation and benefits and professional fees of $17.3 million and $3.7 million, respectively, partially offset by a $2.2 million increase in data processing expense. The decrease in compensation and benefits expense was due primarily to a reduction in staff and incentive compensation for the Company’s mortgage banking segment as a result of decreased mortgage banking volume. The decrease in professional fees was due primarily to a $2.0 million consulting fee incurred in 2022 in connection with negotiating a new core processing contract. The increase in data processing expense is primarily due to one-time charges totaling $1.4 million in connection with the conversion of the Bank’s data processing system.

The Company recognized income tax expense of $10,000 for the year ended September 30, 2023 compared to income tax expense of $1.9 million for the prior year. The effective tax rate for the 2023 period was 0.1% as compared to 11.1% for 2022. The decrease in the effective tax rate in 2023 was primarily due to the recognition of investment tax credits related to solar projects in 2023 and lower pre-tax income in 2023 as compared to 2022. The lower pre-tax income for 2023 is due primarily to losses incurred for mortgage banking operations, professional fees related to mortgage banking loss contingencies, and expenses related to the conversion of the Bank’s data processing system.

Results of Operations for the Three Months Ended September 30, 2023 and 2022

The Company reported a net loss of $747,000, or $0.11 per diluted share, for the three months ended September 30, 2023 compared to net income of $1.4 million, or $0.20 per diluted share, for the three months ended September 30, 2022. Excluding nonrecurring items, the Company reported net income of $2.8 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.41 (non-GAAP measure)⁽¹⁾ for the three months ended September 30, 2023; compared to net income of $3.1 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.44 (non-GAAP measure)⁽¹⁾ for the three months ended September 30, 2022.

Net interest income decreased $1.3 million, or 7.7%, to $15.5 million for the three months ended September 30, 2023 as compared to the same period 2022. The decrease in net interest income was due to an $8.3 million increase in interest expense, partially offset by a $7.0 million increase in interest income. Interest income increased due to an increase in the average balance of interest-earning assets of $257.0 million, from $1.85 billion for 2022 to $2.11 billion for 2023, and an increase in the weighted-average tax-equivalent yield, from 4.64% for 2022 to 5.42% for 2023. The increase in the average balance of interest-earning assets was primarily due to increases in the average balance of loans $317.6 million, partially offset by a decrease in the average balance of investment securities of $58.9 million. Interest expense increased due to an increase in the average balance of interest-bearing liabilities of $311.5 million, from $1.48 billion for 2022 to $1.79 billion for 2023, and an increase in the average cost of interest-bearing liabilities, from 1.12% for 2022 to 2.82% for 2023. The increase in the average cost of interest-bearing liabilities for 2023 was due primarily to higher rates for FHLB borrowings, brokered deposits, and money market deposit accounts as a result of increased market interest rates.

The Company recognized a provision for loan losses of $815,000 for the three months ended September 30, 2023, compared to $880,000 for the same period in 2022. The Company recognized net charge-offs of $753,000 for the three months ended September 30, 2023, of which $609,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $500,000 in 2022, of which $404,000 was related to unguaranteed portions of SBA loans.

Noninterest income increased $911,000 for the three months ended September 30, 2023 as compared to the same period in 2022. The increase was due primarily to an increases in mortgage banking income of $772,000. The increase in mortgage banking income was primarily due to higher origination, sales volume, and gain on sale margins in the 2023 period compared to 2022. Mortgage loans originated for sale were $195.5 million in the three months ended September 30, 2023 as compared to $186.0 million in the same period in 2022.

Noninterest expense increased $2.1 million for the three months ended September 30, 2023 as compared to the same period in 2022. The increase was due primarily to increases in other operating expense and data processing of $2.7 million and $1.4 million, respectively, partially offset by a decrease of $2.6 million in professional fees. The increase in other operating expense was primarily due to SBA-guaranteed loan contingencies and mortgage banking loss contingencies, including related professional fees, of $1.0 million and $1.6 million, respectively, during the three months ended September 30, 2023. The increase in data processing expense is primarily due to one-time charges totaling $1.3 million in connection with the conversion of the Bank’s data processing system. The decrease in professional fees was primarily due to a $2.0 million consulting fee incurred in the 2022 period in connection with negotiating the new data processing contract.

The Company recognized income tax benefit of $737,000 for the three months ended September 30, 2023 compared to tax benefit of $446,000 for the same period in 2022. The increase in the income tax benefit was primarily due to the recognition of investment tax credits related to solar projects in 2023 and a pre-tax loss in 2023 compared to pre-tax income in 2022.

Comparison of Financial Condition at September 30, 2023 and September 30, 2022

Total assets increased $195.1 million, from $2.09 billion at September 30, 2022 to $2.29 billion at September 30, 2023. Net loans held for investment increased $295.7 million during the year ended September 30, 2023 due primarily to growth in residential mortgage and single-tenant net lease commercial real estate loans. Available-for-sale securities decreased $88.8 million during the year ended September 30, 2023 due primarily to the sale of $78.5 million of securities in June 2023 and scheduled amortization and maturities. The proceeds from which were used to repay brokered deposits and FHLB borrowings.

Total liabilities increased $195.7 million due primarily to increases in total deposits and FHLB borrowings of $172.5 million and $55.9 million, respectively, partially offset by a $39.8 million decrease in other borrowings primarily due to the reversal of secured borrowings recorded at September 30, 2022. The increase in total deposits was due primarily increases in brokered deposits, money market deposit accounts, retail time deposits, and interest-bearing checking of $145.8 million, $85.5 million, $41.1 million and $21.6 million, respective, partially offset by decreases in noninterest-bearing deposits and savings accounts of $91.4 million and $30.1 million, respectively. The increases in deposits and FHLB borrowings were primarily used to fund loan growth. As of September 30, 2023, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 27.5% of total deposits and excluding public funds insured by the Indiana Public Deposit Insurance Fund, uninsured deposits totaled 12.8% of total deposits.

Common stockholders’ equity decreased $584,000, from $151.6 million at September 30, 2022 to $151.0 million at September 30, 2023, due primarily to a $2.6 million increase in treasury stock and an increase in accumulated other comprehensive loss of $2.5 million, partially offset by an increase in retained net income of $4.4 million. The increase in treasury stock was due to the repurchase of 124,710 of Company common shares during the year ended September 30, 2023. The increase in accumulated other comprehensive loss was primarily due to increasing long term market interest rates during the year ended September 30, 2023, which resulted in a decrease in the fair value of the available-for-sale securities portfolio. At September 30, 2023 and September 30, 2022, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this report or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

Contact:

Tony A. Schoen, CPA

Chief Financial Officer

812-283-0724

FIRST SAVINGS FINANCIAL GROUP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

YEARS ENDED SEPTEMBER 30, 2023 AND 2022

	Three Months Ended						Years Ended
OPERATING DATA:	September 30,						September 30,
(In thousands, except share and per share data)	2023			2022			2023			2022
Total interest income	$	28,137		$	21,152		$	103,229		$	71,194
Total interest expense		12,601			4,327			41,655			10,542

Net interest income		15,536			16,825			61,574			60,652
Provision for loan losses		815			880			2,612			1,908

Net interest income after provision for loan losses		14,721			15,945			58,962			58,744

Total noninterest income		5,442			4,531			25,342			51,227
Total noninterest expense		21,647			19,514			76,122			92,662

Income (loss) before income taxes		(1,484	)		962			8,182			17,309
Income tax expense (benefit)		(737	)		(446	)		10			1,923

Net income (loss)	$	(747	)	$	1,408		$	8,172		$	15,386

Net income (loss) per share, basic	$	(0.11	)	$	0.20		$	1.19		$	2.18
Weighted average shares outstanding, basic		6,817,365			6,988,873			6,848,311			7,058,550

Net income (loss) per share, diluted	$	(0.11	)	$	0.20		$	1.19		$	2.15
Weighted average shares outstanding, diluted		6,837,919			7,056,138			6,880,072			7,141,846

Performance ratios (annualized)
Return on average assets		(0.13	)%		0.28	%		0.37	%		0.83	%
Return on average equity		(1.82	)%		3.30	%		5.04	%		8.65	%
Return on average common stockholders' equity		(1.82	)%		3.30	%		5.04	%		8.65	%
Net interest margin (tax equivalent basis)		3.03	%		3.75	%		3.10	%		3.72	%
Efficiency ratio		103.19	%		91.37	%		87.58	%		82.82	%

							QTD						FYTD
FINANCIAL CONDITION DATA:	September 30,			June 30,			Increase			September 30,			Increase
(In thousands, except per share data)	2023			2023			(Decrease)			2022			(Decrease)
Total assets	$	2,288,854		$	2,260,421		$	28,433		$	2,093,725		$	195,129
Cash and cash equivalents		30,845			42,475			(11,630	)		41,665			(10,820	)
Investment securities		229,039			249,788			(20,749	)		318,075			(89,036	)
Loans held for sale		45,855			63,142			(17,287	)		60,462			(14,607	)
Gross loans		1,787,143			1,708,127			79,016			1,489,904			297,239
Allowance for loan losses		16,900			16,838			62			15,360			1,540
Interest earning assets		2,083,397			2,048,891			34,506			1,898,051			185,346
Goodwill		9,848			9,848			-			9,848			-
Core deposit intangibles		561			614			(53	)		775			(214	)
Loan servicing rights		62,819			64,139			(1,320	)		67,194			(4,375	)
Noninterest-bearing deposits		248,759			315,602			(66,843	)		340,172			(91,413	)
Interest-bearing deposits (1)		1,439,557			1,344,163			95,394			1,175,662			263,895
Federal Home Loan Bank borrowings		363,183			345,000			18,183			307,303			55,880
Subordinated debt and other borrowings		48,444			48,387			57			88,206			(39,762	)
Total liabilities		2,137,873			2,095,353			42,520			1,942,160			195,713
Accumulated other comprehensive loss		(29,587	)		(17,565	)		(12,022	)		(27,079	)		(2,508	)
Stockholders' equity		150,981			165,068			(14,087	)		151,565			(584	)

Book value per share	$	21.99		$	24.04		$	(2.06	)	$	21.74		$	0.25
Tangible book value per share (2)		20.47			22.52			(2.05	)		20.22			0.25

Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	5,091		$	5,753		$	(662	)	$	5,474		$	(383	)
Nonaccrual loans		8,857			5,954			2,903			5,382			3,475
Total nonaccrual loans	$	13,948		$	11,707		$	2,241		$	10,856		$	3,092
Accruing loans past due 90 days		-			-			-			-			-
Total non-performing loans		13,948			11,707			2,241			10,856			3,092
Foreclosed real estate		474			30			444			-			474
Troubled debt restructurings classified as performing loans		1,266			2,373			(1,107	)		2,714			(1,448	)
Total non-performing assets	$	15,688		$	14,110		$	1,578		$	13,570		$	2,118

Asset quality ratios:
Allowance for loan losses as a percent of total gross loans		0.95	%		0.99	%		(0.04	)%		1.03	%		(0.08	)%
Allowance for loan losses as a percent of nonperforming loans		121.16	%		143.83	%		(22.66	)%		141.49	%		(20.32	)%
Nonperforming loans as a percent of total gross loans		0.78	%		0.69	%		0.10	%		0.73	%		0.05	%
Nonperforming assets as a percent of total assets		0.69	%		0.62	%		0.06	%		0.65	%		0.04	%

(1) Includes $438.3, $414.2 million and $292.5 million of brokered certificates of deposit at September 30, 2023, June 30, 2023 and September 30, 2022, respectively.

(2) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):

The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.

	Three Months Ended						Year Ended
Net Income	September 30,						September 30,
(In thousands)	2023			2022			2023			2022
Net income (loss) attributable to the Company (non-GAAP)	$	2,824		$	3,137		$	12,731		$	17,115
Plus: Gain from repurchase of subordinated debt, net of tax effect		-			-			513			-
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		-			-			(429	)		-
Less: Data processing contract consulting, net of tax effect		-			(1,575	)		-			(1,575	)
Less: Data processing system conversion, net of tax effect		(979	)		-			(1,119	)		-
Less: MSR valuation allowance for intended sale, net of tax effect		(598	)		-			(598	)		-
Less: SBA-guaranteed loan contingency, net of tax effect		(779	)		(154	)		(1,160	)		(154	)
Less: Mortgage banking loss contingencies, net of tax effect		(296	)		-			(847	)		-
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		(919	)		-			(919	)		-
Net income (loss) attributable to the Company (GAAP)	$	(747	)	$	1,408		$	8,172		$	15,386

	Three Months Ended						Year Ended
	September 30,						September 30,
Net Income per Share, Diluted	2023			2022			2023			2022
Net income (loss) per share, diluted (non-GAAP)	$	0.41		$	0.44		$	1.85		$	2.40
Plus: Gain from repurchase of subordinated debt, net of tax effect		-			-			0.07			-
Less: Net loss on sales of available for sale securities and time deposits, net of tax effect		-			-			(0.06	)		-
Less: Data processing contract consulting, net of tax effect		-			(0.22	)		-			(0.22	)
Less: Data processing system conversion, net of tax effect		(0.14	)		-			(0.16	)		-
Less: MSR valuation allowance for intended sale, net of tax effect		(0.09	)		-			(0.09	)		-
Less: SBA-guaranteed loan contingency, net of tax effect		(0.11	)		(0.02	)		(0.17	)		(0.02	)
Less: Mortgage banking loss contingencies, net of tax effect		(0.05	)		-			(0.12	)		-
Less: Professional fees related to mortgage banking loss contingencies, net of tax effect		(0.13	)		-			(0.13	)		-
Net income (loss) per share, diluted (GAAP)	$	(0.11	)	$	0.20		$	1.19		$	2.16

RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):

Efficiency Ratio	September 30,						September 30,
(In thousands)	2023			2022			2023			2022
Net interest income (GAAP)	$	15,536		$	16,825		$	61,574		$	60,652

Noninterest income (GAAP)		5,442			4,531			25,342			51,227

Noninterest expense (GAAP)		21,647			19,514			76,122			92,662

Efficiency ratio (GAAP)		103.19	%		91.37	%		87.58	%		82.82	%

Net interest income (GAAP)	$	15,536		$	16,825		$	61,574		$	60,652

Noninterest income (GAAP)		5,442			4,531			25,342			51,227
Plus: Gain from repurchase of subordinated debt		-			-			660			-
Less: Net loss on sales of available for sale securities and time deposits		-			-			(551	)		-
Noninterest income (Non-GAAP)		5,442			4,531			25,451			51,227

Noninterest expense (GAAP)		21,647			19,514			76,122			92,662
Less: Data processing contract consulting		-			(2,017	)		-			(2,017	)
Less: Data processing system conversion		(1,259	)		-			(1,439	)		-
Less: MSR valuation allowance for intended sale		(769	)		-			(769	)		-
Less: SBA-guaranteed loan contingency		(1,001	)		(197	)		(1,491	)		(197	)
Less: Mortgage banking loss contingencies		(380	)		-			(1,089	)		-
Less: Professional fees related to mortgage banking loss contingencies		(1,181	)		-			(1,181	)		-
Noninterest expense (non-GAAP)	$	17,057		$	17,300		$	70,153		$	90,448

Efficiency ratio (excluding nonrecurring items) (non-GAAP)		81.31	%		81.01	%		80.61	%		80.84	%

							QTD						FYTD
Tangible Book Value Per Share	September 30,			June 30,			Increase			September 30,			Increase
(In thousands, except share and per share data)	2023			2023			(Decrease)			2022			(Decrease)
Stockholders' equity, net of noncontrolling interests (GAAP)	$	150,981		$	165,068		$	(14,087	)	$	151,565		$	(584	)
Less: goodwill and core deposit intangibles		(10,409	)		(10,462	)		53			(10,623	)		214
Tangible equity (non-GAAP)	$	140,572		$	154,606			(14,034	)	$	140,942			(370	)

Outstanding common shares		6,867,121			6,865,921			1,200			6,970,631			(103,510	)

Tangible book value per share (non-GAAP)	$	20.47		$	22.52		$	(2.05	)	$	20.22		$	0.25

Book value per share (GAAP)	$	21.99		$	24.04		$	(2.06	)	$	21.74		$	0.25

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):

	As of
Summarized Consolidated Balance Sheets	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except per share data)	2023			2023			2023			2022			2022
Total cash and cash equivalents	$	30,845		$	42,475		$	41,810		$	38,278		$	41,665
Total investment securities		229,039			249,788			336,317			330,683			318,075
Total loans held for sale		45,855			63,142			48,783			44,281			60,462
Total loans, net of allowance for loan losses		1,770,243			1,691,289			1,598,440			1,582,940			1,474,544
Loan servicing rights		62,819			64,139			65,045			65,598			67,194
Total assets		2,288,854			2,260,421			2,239,606			2,196,919			2,093,725

Retail deposits	$	1,249,997		$	1,245,534		$	1,206,154		$	1,211,677		$	1,223,330
Brokered deposits		438,319			414,231			336,728			326,164			292,504
Total deposits		1,688,316			1,659,765			1,542,882			1,537,841			1,515,834
Federal Home Loan Bank borrowings		363,183			345,000			437,795			377,643			307,303

Common stock and additional paid-in capital	$	27,064		$	27,518		$	27,443		$	27,425		$	26,848
Retained earnings - substantially restricted		166,306			168,015			166,652			163,890			161,927
Accumulated other comprehensive income (loss)		(29,587	)		(17,565	)		(14,199	)		(19,000	)		(27,079	)
Unearned stock compensation		(1,015	)		(1,113	)		(1,211	)		(1,361	)		(969	)
Less treasury stock, at cost		(11,787	)		(11,787	)		(11,787	)		(10,810	)		(9,162	)
Total stockholders' equity	$	150,981		$	165,068		$	166,898		$	160,144		$	151,565

Outstanding common shares		6,867,121			6,865,921			6,865,921			6,917,921			6,970,631

	Three Months Ended
Summarized Consolidated Statements of Income	September 30,			June 30,		March 31,		December 31,		September 30,
(In thousands, except per share data)	2023			2023		2023		2022		2022
Total interest income	$	28,137		$	26,798	$	24,811	$	23,483	$	21,152
Total interest expense		12,601			11,933		9,899		7,222		4,327
Net interest income		15,536			14,865		14,912		16,261		16,825
Provision for loan losses		815			441		372		984		880
Net interest income after provision for loan losses		14,721			14,424		14,540		15,277		15,945

Total noninterest income		5,442			7,196		7,516		5,188		4,531
Total noninterest expense		21,647			18,965		17,999		17,511		19,514
Income (loss) before income taxes		(1,484	)		2,655		4,057		2,954		962
Income tax expense (benefit)		(737	)		331		333		83		(446	)
Net income (loss)	$	(747	)	$	2,324	$	3,724	$	2,871	$	1,408

Net income (loss) per share, basic	$	(0.11	)	$	0.34	$	0.54	$	0.42	$	0.20
Weighted average shares outstanding, basic		6,817,365			6,816,608		6,842,897		6,915,909		6,988,873

Net income (loss) per share, diluted	$	(0.11	)	$	0.34	$	0.54	$	0.41	$	0.20
Weighted average shares outstanding, diluted		6,837,919			6,819,748		6,881,496		6,972,055		7,056,138

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

	Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Consolidated Performance Ratios (Annualized)	2023			2023			2023			2022			2022
Return on average assets		(0.13	)%		0.41	%		0.68	%		0.54	%		0.28	%
Return on average equity		(1.82	)%		5.60	%		9.15	%		7.50	%		3.30	%
Return on average common stockholders' equity		(1.82	)%		5.60	%		9.15	%		7.50	%		3.30	%
Net interest margin (tax equivalent basis)		3.03	%		2.94	%		3.06	%		3.41	%		3.75	%
Efficiency ratio		103.19	%		85.97	%		80.25	%		81.64	%		91.37	%

	As of or for the Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
Consolidated Asset Quality Ratios	2023			2023			2023			2022			2022
Nonperforming loans as a percentage of total loans		0.78	%		0.69	%		0.77	%		0.72	%		0.73	%
Nonperforming assets as a percentage of total assets		0.69	%		0.62	%		0.67	%		0.64	%		0.65	%
Allowance for loan losses as a percentage of total loans		0.95	%		0.99	%		1.02	%		1.01	%		1.03	%
Allowance for loan losses as a percentage of nonperforming loans		121.16	%		143.83	%		132.20	%		139.55	%		141.49	%
Net charge-offs to average outstanding loans		0.04	%		0.00	%		0.00	%		0.02	%		0.03	%

	Three Months Ended
Segmented Statements of Income Information	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)	2023			2023			2023			2022			2022
Core Banking Segment:
Net interest income	$	14,167		$	13,407		$	13,632		$	15,008		$	14,994
Provision for loan losses		1,266			880			422			701			769
Net interest income after provision for loan losses		12,901			12,527			13,210			14,307			14,225
Noninterest income		2,136			1,965			1,733			1,928			1,808
Noninterest expense		13,559			11,010			10,651			9,797			10,499
Income before income taxes		1,478			3,482			4,292			6,438			5,534
Income tax expense		3			561			401			946			735
Net income	$	1,475		$	2,921		$	3,891		$	5,492		$	4,799

SBA Lending Segment (Q2):
Net interest income	$	990		$	1,098		$	1,093		$	995		$	1,182
Provision (credit) for loan losses		(451	)		(439	)		(50	)		283			111
Net interest income after provision (credit) for loan losses		1,441			1,537			1,143			712			1,071
Noninterest income		367			580			1,636			754			480
Noninterest expense		2,907			2,107			2,662			1,924			1,891
Income (loss) before income taxes		(1,099	)		10			117			(458	)		(340	)
Income tax expense (benefit)		(273	)		(21	)		20			(107	)		(123	)
Net income (loss)	$	(826	)	$	31		$	97		$	(351	)	$	(217	)

Mortgage Banking Segment:
Net interest income	$	379		$	360		$	187		$	258		$	649
Provision for loan losses		-			-			-			-			-
Net interest income after provision for loan losses		379			360			187			258			649
Noninterest income		2,939			4,651			4,147			2,506			2,243
Noninterest expense		5,181			5,848			4,686			5,790			7,124
Loss before income taxes		(1,863	)		(837	)		(352	)		(3,026	)		(4,232	)
Income tax benefit		(467	)		(209	)		(88	)		(756	)		(1,058	)
Net loss	$	(1,396	)	$	(628	)	$	(264	)	$	(2,270	)	$	(3,174	)

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

	Three Months Ended
Segmented Statements of Income Information	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except percentage data)	2023			2023			2023			2022			2022
Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking	$	0.22		$	0.43		$	0.57		$	0.80		$	0.68
Net income (loss) per share, basic - SBA Lending (Q2)		(0.12	)		-			0.01			(0.05	)		(0.03	)
Net income (loss) per share, basic - Mortgage Banking		(0.21	)		(0.09	)		(0.04	)		(0.33	)		(0.45	)
Total net income (loss) per share, basic	$	(0.11	)	$	0.34		$	0.54		$	0.42		$	0.20

Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	0.22		$	0.43		$	0.57		$	0.79		$	0.68
Net income (loss) per share, diluted - SBA Lending (Q2)		(0.12	)		-			0.01			(0.05	)		(0.03	)
Net income (loss) per share, diluted - Mortgage Banking		(0.21	)		(0.09	)		(0.04	)		(0.33	)		(0.45	)
Total net income (loss) per share, diluted	$	(0.11	)	$	0.34		$	0.54		$	0.41		$	0.20

Return on Average Assets by Segment (annualized)
Core Banking		0.28	%		0.61	%		0.85	%		1.17	%		1.08	%
SBA Lending		(3.81	)%		0.15	%		0.42	%		(1.38	)%		(0.85	)%
Mortgage Banking		(6.31	)%		(2.24	)%		(1.14	)%		(9.31	)%		(9.44	)%

Efficiency Ratio by Segment (annualized)
Core Banking		83.17	%		71.62	%		69.32	%		57.85	%		62.49	%
SBA Lending		214.22	%		125.57	%		97.54	%		110.01	%		113.78	%
Mortgage Banking		156.15	%		116.70	%		108.12	%		209.48	%		246.33	%

	Three Months Ended
Noninterest Expense Detail by Segment	September 30,		June 30,		March 31,		December 31,		September 30,
(In thousands)	2023		2023		2023		2022		2022
Core Banking Segment:
Compensation (3)	$	6,528	$	4,978	$	5,578	$	5,275	$	4,444
Occupancy		1,418		1,738		1,401		1,443		1,374
Advertising		404		334		298		213		272
Other		5,209		3,960		3,374		2,866		4,409
Total Noninterest Expense	$	13,559	$	11,010	$	10,651	$	9,797	$	10,499

SBA Lending Segment (Q2):
Compensation	$	1,533	$	1,803	$	1,800	$	1,622	$	1,690
Occupancy		68		70		70		54		41
Advertising		10		11		8		2		8
Other		1,296		223		784		246		152
Total Noninterest Expense	$	2,907	$	2,107	$	2,662	$	1,924	$	1,891

Mortgage Banking Segment:
Compensation (3)	$	3,647	$	4,357	$	3,029	$	3,788	$	5,091
Occupancy		395		469		449		363		491
Advertising		129		191		213		203		319
Other		1,010		831		995		1,436		1,223
Total Noninterest Expense	$	5,181	$	5,848	$	4,686	$	5,790	$	7,124

(3) Compensation includes increases for Core Banking and corresponding decreases for Mortgage Banking segment that represent intersegment allocations for loans originated by the Mortgage Banking segment to be held for investment in the Core Banking loan portfolio of:

1,516

1,440

1,328

1,192

945

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

	Three Months Ended
Mortgage Banking Noninterest Expense Fixed vs. Variable	September 30,		June 30,		March 31,		December 31,		September 30,
(In thousands)	2023		2023		2023		2022		2022
Noninterest Expense - Fixed Expenses	$	3,467	$	3,715	$	3,513	$	4,561	$	5,724
Noninterest Expense - Variable Expenses (4)		1,714		2,133		1,173		1,229		1,400
Total Noninterest Expense	$	5,181	$	5,848	$	4,686	$	5,790	$	7,124

	Three Months Ended
SBA Lending (Q2) Data	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except percentage data)	2023			2023			2023			2022			2022
Final funded loans guaranteed portion sold, SBA	$	8,431		$	7,721		$	15,337		$	11,293		$	3,772

Gross gain on sales of loans, SBA	$	809		$	780		$	1,293		$	936		$	393
Weighted average gross gain on sales of loans, SBA		9.60	%		10.10	%		8.43	%		8.29	%		10.42	%

Net gain on sales of loans, SBA (5)	$	538		$	497		$	907		$	775		$	249
Weighted average net gain on sales of loans, SBA		6.38	%		6.44	%		5.91	%		6.86	%		6.60	%

	Three Months Ended
Mortgage Banking Data	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands, except percentage data)	2023			2023			2023			2022			2022
Mortgage originations for sale in the secondary market	$	195,469		$	199,601		$	115,011		$	77,605		$	185,981

Mortgage sales	$	220,609		$	185,557		$	99,711		$	96,177		$	241,804

Gross gain on sales of loans, mortgage banking (6)	$	3,304		$	3,570		$	2,308		$	1,217		$	2,630
Weighted average gross gain on sales of loans, mortgage banking		1.50	%		1.92	%		2.31	%		1.27	%		1.09	%

Mortgage banking income (7)	$	3,018		$	4,668		$	4,149		$	2,496		$	2,246

(4) Variable expenses include incentive compensation and advertising expenses.

(5) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.

(6) Inclusive of gains on capitalized mortgage servicing rights, realized hedging gains and loan fees, and net of lender credits and other investor expenses.

(7) Inclusive of loan fees, servicing income, gains or losses on mortgage servicing rights, fair value adjustments and gains or losses on derivative instruments, and net of lender credits and other investor expenses.

SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):

	Three Months Ended
Summarized Consolidated Average Balance Sheets	September 30,			June 30,			March 31,			December 31,			September 30,
(In thousands)	2023			2023			2023			2022			2022
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	21,631		$	20,661		$	27,649		$	19,379		$	28,318
Loans		1,796,749			1,719,733			1,621,147			1,583,182			1,479,167
Investment securities - taxable		105,393			109,319			110,373			111,936			94,836
Investment securities - nontaxable		160,829			234,118			242,530			241,504			230,312
FRB and FHLB stock		24,939			24,509			23,289			20,063			19,890
Total interest-earning assets	$	2,109,541		$	2,108,340		$	2,024,988		$	1,976,064		$	1,852,523

Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	266		$	267		$	192		$	144		$	97
Loans		25,214			23,279			21,339			20,222			18,029
Investment securities - taxable		969			984			957			955			740
Investment securities - nontaxable		1,695			2,456			2,533			2,505			2,352
FRB and FHLB stock		428			423			364			220			265
Total interest income (tax equivalent basis)	$	28,572		$	27,409		$	25,385		$	24,046		$	21,483

Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		4.92	%		5.17	%		2.78	%		2.97	%		1.37	%
Loans		5.61	%		5.41	%		5.27	%		5.11	%		4.88	%
Investment securities - taxable		3.68	%		3.60	%		3.47	%		3.41	%		3.12	%
Investment securities - nontaxable		4.22	%		4.20	%		4.18	%		4.15	%		4.08	%
FRB and FHLB stock		6.86	%		6.90	%		6.25	%		4.39	%		5.33	%
Total interest-earning assets		5.42	%		5.20	%		5.01	%		4.87	%		4.64	%

Interest-bearing liabilities
Interest-bearing deposits	$	1,385,994		$	1,278,776		$	1,251,080		$	1,213,419		$	1,125,659
Fed funds purchased		76			11			-			-			-
Federal Home Loan Bank borrowings		353,890			434,182			374,593			311,146			301,027
Subordinated debt and other borrowings		48,406			49,339			50,293			88,304			50,179
Total interest-bearing liabilities	$	1,788,366		$	1,762,308		$	1,675,966		$	1,612,869		$	1,476,865

Interest expense:
Interest-bearing deposits	$	9,457		$	7,791		$	6,265		$	4,158		$	2,306
Repurchase agreements		-			-			-			-			-
Fed funds purchased		1			-			-			-			-
Federal Home Loan Bank borrowings		2,459			3,446			2,915			1,919			1,111
Subordinated debt and other borrowings		684			696			719			1,145			714
Total interest expense	$	12,601		$	11,933		$	9,899		$	7,222		$	4,131

Weighted average cost (annualized):
Interest-bearing deposits		2.73	%		2.44	%		2.00	%		1.37	%		0.82	%
Fed funds purchased		5.26	%		0.00	%		0.00	%		0.00	%		0.00	%
Federal Home Loan Bank borrowings		2.78	%		3.17	%		3.11	%		2.47	%		1.48	%
Subordinated debt and other borrowings		5.65	%		5.64	%		5.72	%		5.19	%		5.69	%
Total interest-bearing liabilities		2.82	%		2.71	%		2.36	%		1.79	%		1.12	%

Net interest income (taxable equivalent basis)	$	15,971		$	15,476		$	15,486		$	16,824		$	17,352
Less: taxable equivalent adjustment		(435	)		(611	)		(574	)		(563	)		(527	)
Net interest income	$	15,536		$	14,865		$	14,912		$	16,261		$	16,825

Interest rate spread (tax equivalent basis, annualized)		2.60	%		2.49	%		2.65	%		3.08	%		3.52	%

Net interest margin (tax equivalent basis, annualized)		3.03	%		2.94	%		3.06	%		3.41	%		3.75	%

Cover	Oct. 31, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 31, 2023
Entity File Number	001-34155
Entity Registrant Name	FIRST SAVINGS FINANCIAL GROUP, INC.
Entity Central Index Key	0001435508
Entity Tax Identification Number	37-1567871
Entity Incorporation, State or Country Code	IN
Entity Address, Address Line One	702 North Shore Drive
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	Jeffersonville
Entity Address, State or Province	IN
Entity Address, Postal Zip Code	47130
City Area Code	812
Local Phone Number	283-0724
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	FSFG
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false