Last Updated 5/5/25
First Savings Financial Group, Inc. (NASDAQ: FSFG) might not get much airtime on the financial news networks, but for long-term dividend investors, it deserves a closer look. This is a small regional banking outfit, headquartered in Indiana, that operates through its subsidiary First Savings Bank. It offers the usual lineup of services—residential and commercial loans, deposit accounts, and a mix of mortgage banking—without overcomplicating the model.
FSFG isn’t in the business of hype. Instead, it’s built a foundation on consistency, community, and prudent capital management. It’s the kind of stock that doesn’t need to steal the spotlight because it’s often quietly delivering in the background. If you’re looking to build a dividend-focused portfolio with steady cash flow and a low-drama equity profile, FSFG is worth paying attention to.
Recent Events
Over the past year, FSFG’s share price has moved sharply higher—more than 70% off its 52-week low. Not something you typically see in a sleepy regional bank, but the market’s been taking notice of stronger earnings and improved efficiency. At around $27.59 per share as of early May, it’s now sitting close to its yearly highs.
What’s been driving that move? Earnings per share grew over 11% year-over-year, with total revenue ticking up by 12.6%. Those are respectable gains, especially given the size and scope of FSFG’s operations. The company generated net income of $19.47 million over the trailing twelve months, translating to $2.81 per share. A key metric for dividend investors—return on equity—is currently at 11.31%, which is quite solid for a bank in this category. Meanwhile, return on assets came in at 0.82%, which might seem low at first glance, but is within the norm for a community-focused lender.
Another important detail: insiders hold just under 20% of the stock. That’s a strong signal. It shows alignment between management and shareholders, and typically leads to more disciplined decision-making over time.
Key Dividend Metrics
📈 Dividend Yield: 2.33% (Forward)
💵 Annual Dividend: $0.64 per share (Forward)
🎯 Payout Ratio: 21.71%
📅 Ex-Dividend Date: March 14, 2025
🏦 Dividend Date: March 31, 2025
📊 5-Year Average Yield: 2.24%
📉 Beta (5Y Monthly): 0.41
📈 1-Year Price Gain: +70.17%
Dividend Overview
The current forward dividend yield sits at 2.33%, putting FSFG right in the wheelhouse for income investors who prefer reliable, moderate payouts over high-risk, high-yield plays. What stands out here isn’t the yield itself—it’s how sustainable it is.
With earnings covering the dividend nearly five times over, the company’s payout ratio of 21.71% is refreshingly conservative. That kind of headroom gives FSFG the flexibility to continue paying its dividend through different market cycles without needing to tap into reserves or make reactive cuts. You’re not getting flashy numbers, but you are getting consistency, which is often more valuable for long-term wealth building.
Even with the share price pushing higher over the past year, the dividend hasn’t lost ground. That suggests the income is coming from genuine earnings strength rather than short-term boosts. In fact, FSFG’s book value per share is now at $26.07, and the price-to-book ratio is just a shade over 1.0. That kind of valuation shows the stock hasn’t run too far ahead of its fundamentals.
Dividend Growth and Safety
Dividend safety is the part of the story that really clicks for FSFG. A payout ratio hovering just above 21% is about as reassuring as it gets. This isn’t a company stretching to maintain its yield. It’s delivering a dividend that’s well supported by earnings, with room to grow.
Historically, the bank’s five-year average yield has been right around 2.24%, and current levels remain in that same range. There haven’t been massive dividend hikes in recent years, but FSFG has maintained a steady hand—never slashing, never surprising. The company’s focus has clearly been on balance sheet strength and slow, measured growth.
The balance sheet looks decent, with cash on hand at $28.68 million. Debt stands at $373.99 million, which is material, but not uncommon in this segment. As long as the credit quality holds and earnings remain consistent, the dividend has little risk of being disturbed.
The stock’s beta sits at just 0.41, a rare find in a market full of volatility. For retirees or income-focused investors who care about capital stability just as much as the dividend itself, FSFG offers a relatively smooth ride. That kind of low-beta positioning adds a different kind of value—less drama, more predictability.
While dividend growth hasn’t been rapid, the company is operating from a position of strength. With margins expanding and revenue growing steadily, there’s a good chance the dividend could increase modestly in the near future. But even if it doesn’t, what’s already there is backed by fundamentals—not fluff.
In a market that often rewards flash over fundamentals, FSFG offers something increasingly rare: dependability.
Cash Flow Statement
First Savings Financial Group’s cash flow statement reveals a business that’s cycling large volumes of capital through both financing and investing activities. For the trailing twelve months, FSFG generated $8.4 million in operating cash flow—down significantly from $91.2 million the prior year. Free cash flow followed suit at $7.6 million, compared to $90.5 million a year earlier. While still positive, the recent slowdown suggests a more tempered operational pace, likely reflecting shifts in loan origination or changes in funding costs.
The bank remained aggressive on the financing front, bringing in $83.3 million in cash through financing activities over the past year, a continuation of multi-year trends where liquidity injections have helped offset deep outflows on the investing side. Investing cash flow came in at negative $48.9 million for the TTM, consistent with the company’s long-term capital deployment into loans and other yield-generating assets. Despite this imbalance, the cash position grew to $76.2 million at period end—showing FSFG still retains flexibility even with a heavy reinvestment profile.
Analyst Ratings
📈 First Savings Financial Group (FSFG) has recently caught the attention of analysts, prompting several upgrades to price targets. Piper Sandler raised its target from $30.00 to $32.00 while maintaining an overweight rating, reflecting growing confidence in FSFG’s operating momentum. Maxim Group also increased its price target from $28.00 to $31.00, reiterating a buy rating. Both upgrades follow a string of consistent earnings beats and a visible improvement in profitability metrics, which have lifted sentiment around the stock.
🎯 The current consensus among analysts stands at a moderate buy, with an average 12-month price target of $29.00. At today’s trading level near $27.59, that implies a modest upside of around 5.45%. Targets range from a conservative $24.00 on the low end to a more bullish $32.00 at the high end. This spread shows some difference in expectations but points to a generally optimistic view on FSFG’s performance over the next year. Recent upward revisions have been driven by strong net income growth, better-than-expected return on equity, and improved capital ratios, all of which suggest the bank is navigating the current environment more efficiently than many of its peers.
Earning Report Summary
Latest Quarter Highlights
So, for the quarter ending this past March, First Savings Financial Group saw their net income reach $5.5 million, which works out to $0.79 per share for everyone holding stock. That’s a bit of a jump from the same time last year when they reported $4.9 million, or $0.72 per share. If you take out some one-time items, their net income was still pretty solid at $5.3 million, or $0.76 per share.
What really helped things out was their net interest income, which went up by a healthy 11.6% to $16.0 million. This happened because they brought in more in interest and actually paid out less in interest compared to last year. Because of this, their net interest margin, which is a key measure of profitability, also improved, going from 2.66% up to 2.93%.
On the other hand, their noninterest income took a slight dip, down by $150,000. This was mostly because they had less income from other sources, although they did see more money coming in from service charges on deposit accounts and from selling some SBA loans. Their noninterest expenses did go up though, by $1.9 million, mainly because they spent more on employee compensation and benefits, as well as general operating costs. They also had a lower income tax expense of $589,000 compared to $866,000 last year, which they said was due to using more investment tax credits.
Six-Month Performance
Looking at the bigger picture, for the six months ending in March, First Savings Financial Group reported a net income of $11.7 million, or $1.68 per share. That’s a significant increase compared to the $5.8 million, or $0.85 per share, they reported during the same six months in 2024. Their net interest income also showed a good increase of 10.6%, reaching $31.5 million. Interestingly, they actually had a reversal in their provision for credit losses, meaning they freed up $848,000 that they had previously set aside for potential loan losses. They mentioned this was mainly due to selling off a chunk of their home equity lines of credit and also reducing some of their general reserves.
Financial Position
Over the past six months, the company’s total assets did see a decrease of $74.1 million, landing at $2.38 billion. Their net loans held for investment also went down by $83.7 million, which they attributed largely to that sale of home equity lines of credit. Despite these decreases, the company highlighted that they are still in a strong capital position, with their leverage and total risk-based capital ratios both comfortably above regulatory requirements.
Final Thoughts
First Savings Financial Group (FSFG) presents a compelling profile for dividend investors seeking a steady, community-focused bank with improving financial performance. The company’s consistent earnings growth, expanding net interest margin, and conservative payout ratio underscore the sustainability of its dividend. While its operating cash flow trends warrant monitoring, FSFG’s strong capital position and the positive revisions in analyst price targets suggest a favorable outlook. For investors prioritizing reliable income from a well-managed regional bank with a significant level of insider ownership, FSFG remains a noteworthy consideration.