First Savings Financial Group, Inc. Completes $31.0 Million Subordinated Notes Offering

Rhea-AI Summary

First Savings Financial Group, Inc. (NASDAQ: FSFG) has completed a private placement offering of $31 million in 4.50% Fixed-to-Floating Rate Subordinated Notes due 2032. The proceeds will fund organic growth, repay existing subordinated debt, and may be used for stock repurchases. The Notes mature on March 30, 2032, and initially carry a fixed interest rate of 4.50% until 2027, after which the rate will reset quarterly. This offering is expected to qualify as Tier 2 capital for the company.

Positive

• Successful completion of a $31 million private placement offering.
• Funding aimed at organic growth, debt repayment, and share repurchases.
• Notes expected to qualify as Tier 2 capital for regulatory purposes.

Negative

• None.

JEFFERSONVILLE, Ind., March 21, 2022 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (the “Company”) (NASDAQ: FSFG), the holding company for First Savings Bank (the “Bank”), announced today the completion of a private placement offering of 4.50% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “Notes”), in the aggregate principal amount of $31.0 million, to certain qualified institutional buyers and accredited institutional investors. The Company intends to use the net proceeds for general corporate purposes, including to fund organic growth, the future repayment of existing outstanding subordinated debt, and potential repurchases of shares of the Company’s outstanding common stock. The Notes are intended to qualify as Tier 2 capital for the Company for regulatory capital purposes, if applicable.

The Notes mature on March 30, 2032, unless redeemed earlier. The Notes initially bear interest, payable semi-annually in arrears, at a fixed rate of 4.50% per annum until March 30, 2027. Beginning March 30, 2027 and until maturity or redemption, the interest rate applicable to the outstanding principal amount of the Notes due will reset quarterly to an interest rate per annum equal to the then current three-month Secured Overnight Financing Rate (SOFR) plus 276 basis points, payable quarterly in arrears. The Company has the option to redeem the Notes, at par and in whole or in part, beginning on March 30, 2027.

Luse Gorman, PC served as legal counsel to the Company. Piper Sandler & Co. served as lead placement agent and Hovde Group, LLC served as co-placement agent. Kilpatrick Townsend & Stockton LLP served as legal counsel to Piper Sandler & Co. and Hovde Group, LLC.

The Notes have not been registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy any security, nor shall there be any sale in any jurisdiction in which such an offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such jurisdiction. The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation or any other government agency or fund.

About First Savings Financial Group, Inc. and First Savings Bank

The Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the river from Louisville, Kentucky, and operates fifteen depository branches within southern Indiana. The Bank also has three national lending programs, including single-tenant net lease commercial real estate, SBA lending and residential mortgage banking, with offices located throughout the United States. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings 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.”

Statement About Forward-Looking Statements

Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions; the scope and duration of economic contraction as a result of the COVID-19 pandemic and its effects on the Company’s business and that of the Company’s customers; changes in market interest rates; deposit flows; demand for loans; real estate values and competition; competitive products and pricing; the ability of the Company’s customers to make scheduled loan payments; loan delinquency rates and trends; the Company’s ability to manage the risks involved in its business; the Company’s ability to control costs and expenses; inflation, market and monetary fluctuations; changes in federal and state legislation and regulation applicable to the Company’s business; actions by the Company’s competitors; and other factors that may be disclosed in the Company’s periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

Contact:

Tony A. Schoen
Chief Financial Officer
(812) 283-0724

FAQ

What are the details of First Savings Financial Group's recent private placement offering?

First Savings Financial Group announced a private placement of $31 million in 4.50% Fixed-to-Floating Rate Subordinated Notes due 2032.

How will FSFG utilize the proceeds from the private placement offering?

The proceeds will be used for general corporate purposes, including funding organic growth and repaying existing subordinated debt.

When do the Notes from FSFG mature?

The Notes will mature on March 30, 2032.

What is the interest rate structure of FSFG's Subordinated Notes?

The Notes carry a fixed interest rate of 4.50% until March 30, 2027, after which the rate will reset quarterly based on the three-month SOFR.

Will the Notes qualify as capital for regulatory purposes?

Yes, the Notes are intended to qualify as Tier 2 capital for regulatory purposes.