UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

OR

¨ 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)

501 East Lewis & Clark Parkway, Clarksville, Indiana 47129

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code 1-812-283-0724

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

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 x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files). Yes x No¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

(Check one):	Large Accelerated Filer ¨	Accelerated Filer ¨
	Non-accelerated Filer ¨	Smaller Reporting Company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The number of shares outstanding of the registrant’s common stock as of March 31, 2015 was 2,187,993.

FIRST SAVINGS FINANCIAL GROUP, INC.

INDEX

		Page
Part I	Financial Information	3
	Item 1.  Financial Statements
	Consolidated Balance Sheets as of March 31, 2015 and September 30, 2014 (unaudited)	3
	Consolidated Statements of Income for the three months and six months ended March 31, 2015 and 2014 (unaudited)	4
	Consolidated Statements of Comprehensive Income for the three months and six months ended March 31, 2015 and 2014 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity for the six months ended March 31, 2015 and 2014 (unaudited)	6
	Consolidated Statements of Cash Flows for the six months ended March 31, 2015 and 2014 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8-42
	Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	43-54
	Item 3.  Quantitative and Qualitative Disclosures About Market Risk	55-57
	Item 4.  Controls and Procedures	58
Part II	Other Information
	Item 1.  Legal Proceedings	59
	Item 1A.  Risk Factors	59
	Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	60
	Item 3.  Defaults Upon Senior Securities	60
	Item 4.  Mine Safety Disclosures	60
	Item 5.  Other Information	61
	Item 6.  Exhibits	61
Signatures		62

- 2 -

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31,			September 30,
(In thousands, except share and per share data)	2015			2014
ASSETS
Cash and due from banks	$	9,875		$	8,853
Interest-bearing deposits with banks		10,322			11,477
Total cash and cash equivalents		20,197			20,330
Interest-bearing time deposits		2,235			1,500
Trading account securities, at fair value		5,229			5,319
Securities available for sale, at fair value		183,375			184,697
Securities held to maturity		5,012			5,419
Loans held for sale		320			281
Loans, net		445,024			433,876
Federal Reserve Bank and Federal Home Loan Bank stock, at cost		7,462			6,517
Real estate development and construction		7,105			7,202
Premises and equipment		14,027			14,275
Other real estate owned, held for sale		552			953
Accrued interest receivable:
Loans		1,227			1,276
Securities		1,283			1,235
Cash surrender value of life insurance		18,266			18,021
Goodwill		7,936			7,936
Core deposit intangibles		1,553			1,725
Other assets		6,044			2,567
Total Assets	$	726,847		$	713,129
LIABILITIES
Deposits:
Noninterest-bearing	$	62,553		$	56,092
Interest-bearing		474,384			477,102
Total deposits		536,937			533,194
Repurchase agreements		1,340			1,338
Borrowings from Federal Home Loan Bank		81,554			79,548
Other long-term debt		4,724			4,812
Accrued interest payable		179			175
Advance payments by borrowers for taxes and insurance		747			748
Accrued expenses and other liabilities		9,667			6,234
Total Liabilities		635,148			626,049
STOCKHOLDERS' EQUITY
Preferred stock of $.01 par value per share Authorized 982,880 shares; none issued		-			-
Senior Non-Cumulative Perpetual Preferred Stock, Series A, $.01 par value; Authorized 17,120 shares; issued and outstanding 17,120 shares; aggregate liquidation preference of $17,120		-			-
Common stock of $.01 par value per share Authorized 20,000,000 shares; issued 2,542,042 shares; outstanding 2,187,993 shares (2,171,812 shares at September 30, 2014)		25			25
Additional paid-in capital - preferred		17,120			17,120
Additional paid-in capital - common		26,495			26,079
Retained earnings - substantially restricted		49,345			47,175
Accumulated other comprehensive income		5,251			3,853
Unearned ESOP shares		(281	)		(537	)
Unearned stock compensation		(31	)		(162	)
Less treasury stock, at cost - 354,049 shares (370,230 shares at September 30, 2014)		(6,225	)		(6,473	)
Total Stockholders' Equity		91,699			87,080
Total Liabilities and Stockholders' Equity	$	726,847		$	713,129

See notes to consolidated financial statements.

- 3 -

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands, except share and per share data)	2015			2014			2015			2014
INTEREST INCOME
Loans, including fees	$	5,350		$	5,257		$	10,720		$	10,482
Securities:
Taxable		992			1,223			2,084			2,253
Tax-exempt		489			424			960			844
Dividend income		83			78			146			128
Interest-bearing deposits with banks		10			8			23			17
Total interest income		6,924			6,990			13,933			13,724
INTEREST EXPENSE
Deposits		598			598			1,240			1,210
Repurchase agreements		1			1			2			2
Borrowings from Federal Home Loan Bank		308			241			548			493
Loans payable		45			48			93			105
Total interest expense		952			888			1,883			1,810
Net interest income		5,972			6,102			12,050			11,914
Provision for loan losses		212			303			419			604
Net interest income after provision for loan losses		5,760			5,799			11,631			11,310
NONINTEREST INCOME
Service charges on deposit accounts		305			279			676			597
Net gain on sales of available for sale securities		-			-			-			1
Net gain on trading account securities		89			205			160			362
Unrealized loss on derivative contract		(1	)		(3	)		(1	)		(5	)
Net gain on sales of loans		49			42			134			119
Increase in cash surrender value of life insurance		117			134			245			231
Commission income		107			73			168			140
Real estate lease income		150			119			301			261
Other income		262			533			506			780
Total noninterest income		1,078			1,382			2,189			2,486
NONINTEREST EXPENSE
Compensation and benefits		2,637			2,730			5,638			5,709
Occupancy and equipment		652			642			1,256			1,275
Data processing		348			294			729			604
Advertising		147			73			253			140
Professional fees		201			387			515			632
FDIC insurance premiums		115			102			224			222
Net loss on other real estate owned		16			38			21			108
Other operating expenses		760			755			1,614			1,495
Total noninterest expense		4,876			5,021			10,250			10,185
Income before income taxes		1,962			2,160			3,570			3,611
Income tax expense		435			624			843			1,047
Net Income	$	1,527		$	1,536		$	2,727		$	2,564
Preferred stock dividends declared		43			43			86			86
Net Income Available to Common Shareholders	$	1,484		$	1,493		$	2,641		$	2,478
Net income per common share:
Basic	$	0.69		$	0.70		$	1.24		$	1.15
Diluted	$	0.66		$	0.66		$	1.18		$	1.10
Weighted average common shares outstanding:
Basic		2,138,931			2,140,414			2,125,369			2,149,426
Diluted		2,245,371			2,248,961			2,231,574			2,254,999
Dividends per common share	$	0.12		$	0.11		$	0.23		$	0.21

See notes to consolidated financial statements.

- 4 -

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended						Six Months Ended
	March 31,						March 31,
(In thousands)	2015			2014			2015			2014
Net Income	$	1,527		$	1,536		$	2,727		$	2,564
OTHER COMPREHENSIVE INCOME, NET OF TAX
Unrealized gains on securities available for sale:
Unrealized holding gains arising during the period		1,173			1,634			2,168			1,102
Income tax expense		(417	)		(575	)		(770	)		(380	)
Net of tax amount		756			1,059			1,398			722
Less: reclassification adjustment for realized gains included in net income		-			-			-			(1	)
Income tax expense		-			-			-			1
Net of tax amount		-			-			-			-
Other Comprehensive Income		756			1,059			1,398			722
Comprehensive Income	$	2,283		$	2,595		$	4,125		$	3,286

See notes to consolidated financial statements.

- 5 -

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(Unaudited)

											Accumulated		Unearned
											Other		Stock
	Preferred		Common		Additional			Retained			Comprehensive		Compensation			Treasury
(In thousands, except share and per share data)	Stock		Stock		Paid-in Capital			Earnings			Income		and ESOP			Stock			Total
Six Months Ended March 31, 2014:
Balances at October 1, 2013	$	-	$	25	$	42,584		$	42,870		$	1,468	$	(1,287	)	$	(3,407	)	$	82,253
Net income		-		-		-			2,564			-		-			-			2,564
Other comprehensive loss		-		-		-			-			722		-			-			722
Preferred stock dividends		-		-		-			(86	)		-		-			-			(86	)
Common stock dividends ($0.21 per share)		-		-		-			(435	)		-		-			-			(435	)
Stock compensation expense		-		-		76			-			-		130			-			206
Shares released by ESOP trust		-		-		310			-			-		247			-			557
Purchase of 106,074 treasury shares		-		-		-			-			-		-			(2,463	)		(2,463	)
Balances at March 31, 2014	$	-	$	25	$	42,970		$	44,913		$	2,190	$	(910	)	$	(5,870	)	$	83,318
Six Months Ended March 31, 2015:
Balances at October 1, 2014	$	-	$	25	$	43,199		$	47,175		$	3,853	$	(699	)	$	(6,473	)	$	87,080
Net income		-		-		-			2,727			-		-			-			2,727
Other comprehensive income		-		-		-			-			1,398		-			-			1,398
Preferred stock dividends		-		-		-			(86	)		-		-			-			(86	)
Common stock dividends ($0.23 per share)		-		-		-			(471	)		-		-			-			(471	)
Stock compensation expense		-		-		108			-			-		131			-			239
Shares released by ESOP trust		-		-		397			-			-		256			-			653
Stock options exercise - 20,972 shares		-		-		(89	)		-			-		-			367			278
Purchase of 4,791 treasury shares		-		-		-			-			-		-			(119	)		(119	)
Balances at March 31, 2015	$	-	$	25	$	43,615		$	49,345		$	5,251	$	(312	)	$	(6,225	)	$	91,699

See notes to consolidated financial statements.

- 6 -

PART I - FINANCIAL INFORMATION

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	March 31,
(In thousands)	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	2,727		$	2,564
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses		419			604
Depreciation and amortization		721			704
Amortization of premiums and accretion of discounts on securities, net		388			304
(Increase) decrease in trading account securities		90			(1,889	)
Loans originated for sale		(4,436	)		(3,396	)
Proceeds on sales of loans		4,531			3,855
Net gain on sales of loans		(134	)		(119	)
Net realized and unrealized loss on other real estate owned		12			4
Net gain on sales of available for sale securities		-			(1	)
Unrealized loss on derivative contract		1			5
Increase in cash surrender value of life insurance		(245	)		(231	)
Deferred income taxes		(247	)		(193	)
ESOP and stock compensation expense		808			727
(Increase) decrease in accrued interest receivable		1			(115	)
Increase (decrease) in accrued interest payable		4			(2	)
Change in other assets and liabilities, net		(91	)		555
Net Cash Provided By Operating Activities		4,549			3,376
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in interest-bearing time deposits		(735	)		-
Purchase of securities available for sale		(11,684	)		(27,133	)
Proceeds from sales of securities available for sale		-			303
Proceeds from maturities of securities available for sale		6,117			2,233
Proceeds from maturities of securities held to maturity		342			384
Principal collected on securities		8,737			6,842
Net increase in loans		(11,652	)		(21,112	)
Purchase of Federal Reserve Bank stock		(945	)		-
Purchase of Federal Home Loan Bank stock		(461	)		(175	)
Proceeds from redemption of Federal Home Loan Bank stock		461			-
Investment in cash surrender value of life insurance		-			(5,000	)
Investment in historic tax credit entity		(417	)		-
Proceeds from sale of other real estate owned		495			317
Investment in real estate development and construction		-			(216	)
Purchase of premises and equipment		(204	)		(316	)
Net Cash Used In Investing Activities		(9,946	)		(43,873	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits		3,743			46,164
Net increase in repurchase agreements		2			1
Increase (decrease) in Federal Home Loan Bank line of credit		(7,994	)		1,396
Proceeds from Federal Home Loan Bank advances		205,000			177,000
Repayment of Federal Home Loan Bank advances		(195,000	)		(182,000	)
Repayment of other long-term debt		(88	)		(77	)
Net decrease in advance payments by borrowers for taxes and insurance		(1	)		(53	)
Exercise of stock options		278			-
Purchase of treasury stock		(119	)		(2,357	)
Dividends paid on preferred stock		(86	)		(86	)
Dividends paid on common stock		(471	)		(435	)
Net Cash Provided By Financing Activities		5,264			39,553
Net Decrease in Cash and Cash Equivalents		(133	)		(944	)
Cash and cash equivalents at beginning of year		20,330			20,815
Cash and Cash Equivalents at End of Year	$	20,197		$	19,871

See notes to consolidated financial statements.

- 7 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Presentation of Interim Information

First Savings Financial Group, Inc. (the “Company”) is a financial holding company and the parent of First Savings Bank (the “Bank”) and First Savings Insurance Risk Management, Inc. (the “Captive”).

The Bank, which is a wholly-owned Indiana-chartered commercial bank subsidiary of the Company, provides a variety of banking services to individuals and business customers through fifteen locations in southern Indiana. The Bank attracts deposits primarily from the general public and uses those funds, along with other borrowings, primarily to originate residential mortgage, commercial mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities and other securities. The Bank has three wholly-owned subsidiaries: First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio; FFCC, Inc., which is an Indiana corporation that participates in commercial real estate development and leasing; and Southern Indiana Financial Corporation, which is currently inactive.

The Captive, which is a wholly-owned insurance subsidiary of the Company formed during the fourth fiscal quarter of 2014, is a Nevada corporation that provides property and casualty insurance to the Company, the Bank and the Bank’s active subsidiaries. In addition, the Captive provides reinsurance to seven other third-party insurance captives for which insurance may not be currently available or economically feasible in the insurance marketplace.

In the opinion of management, the unaudited consolidated financial statements include all adjustments considered necessary to present fairly the financial position as of March 31, 2015, the results of operations for the three- and six-month periods ended March 31, 2015 and 2014, and the cash flows for the six-month periods ended March 31, 2015 and 2014. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited consolidated financial statements. Interim results are not necessarily indicative of results for a full year.

The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements, conform to general practices within the banking industry and are presented as permitted by the instructions to Form 10-Q. Accordingly, they do not contain certain information included in the Company’s audited consolidated financial statements and related notes for the year ended September 30, 2014 included in the Company’s Annual Report on Form 10-K.

The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation.

- 8 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

2. Investment Securities

Agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations (“CMO”) include securities issued by the Government National Mortgage Association (“GNMA”), a U.S. government agency, and the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal Home Loan Bank (“FHLB”), which are U.S. government-sponsored enterprises. The Company also holds a pass-through asset-backed security guaranteed by the Small Business Administration (“SBA”) representing participating interests in pools of long-term debentures issued by state and local development companies certified by the SBA. Privately-issued CMO and asset-backed securities (“ABS”) are complex securities issued by non-government special-purpose entities that are collateralized by residential mortgage loans and residential home equity loans.

Investment securities have been classified according to management’s intent.

Trading Account Securities

The Company invests in small and medium lot, investment grade municipal bonds through a managed brokerage account. The brokerage account is managed by an investment advisory firm registered with the U.S. Securities and Exchange Commission. At March 31, 2015 and September 30, 2014, trading account securities recorded at fair value totaled $5.2 million and $5.3 million, respectively, and were comprised of investment grade municipal bonds. During the six-months ended March 31, 2015, the Company reported net gains on trading account securities of $160,000, including net realized gains on the sale of securities of $159,000, and net unrealized gains on securities still held as of the balance sheet date of $1,000. During the three-months ended March 31, 2015, the Company reported net gains on trading account securities of $89,000, including net realized gains on the sale of securities of $83,000 and net unrealized gains on securities still held as of the balance sheet date of $6,000. During the six-months ended March 31, 2014, the Company reported net gains on trading account securities of $362,000, including net realized gains on the sale of securities of $418,000, partially offset by net unrealized losses on securities still held as of the balance sheet date of $56,000. During the three-months ended March 31, 2014, the Company reported net gains on trading account securities of $205,000, including net realized gains on the sale of securities of $252,000, partially offset by net unrealized losses on securities still held as of the balance sheet date of $47,000.

- 9 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Securities Available for Sale and Held to Maturity

The amortized cost of securities available for sale and held to maturity and their approximate fair values are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
March 31, 2015:
Securities available for sale:
Agency bonds and notes	$	9,083	$	24	$	6	$	9,101
Agency mortgage-backed		48,508		1,001		13		49,496
Agency CMO		24,717		150		103		24,764
Privately-issued CMO		3,159		553		-		3,712
Privately-issued ABS		5,208		1,572		-		6,780
SBA certificates		1,619		12		-		1,631
Municipal obligations		82,732		5,205		46		87,891
Total securities available for sale	$	175,026	$	8,517	$	168	$	183,375
Securities held to maturity:
Agency mortgage-backed	$	402	$	33	$	-	$	435
Municipal obligations		4,610		648		-		5,258
Total securities held to maturity	$	5,012	$	681	$	-	$	5,693

- 10 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In thousands)
September 30, 2014:
Securities available for sale:
Agency bonds and notes	$	12,269	$	12	$	190	$	12,091
Agency mortgage-backed		51,845		518		108		52,255
Agency CMO		29,648		95		259		29,484
Privately-issued CMO		3,302		618		-		3,920
Privately-issued ABS		5,552		1,801		-		7,353
SBA certificates		1,753		9		-		1,762
Municipal obligations		74,148		3,818		134		77,832
Total securities available for sale	$	178,517	$	6,871	$	691	$	184,697
Securities held to maturity:
Agency mortgage-backed	$	455	$	37	$	-	$	492
Municipal		4,964		393		-		5,357
Total securities held to maturity	$	5,419	$	430	$	-	$	5,849

The amortized cost and fair value of investment securities as of March 31, 2015 by contractual maturity are shown below. Expected maturities of mortgage-backed securities, CMO and ABS may differ from contractual maturities because the mortgages underlying the obligations may be prepaid without penalty.

	Available for Sale				Held to Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In thousands)
Due within one year	$	530	$	534	$	604	$	655
Due after one year through five years		5,374		5,652		1,779		2,093
Due after five years through ten years		23,662		25,094		1,386		1,579
Due after ten years		62,249		65,712		841		931
		91,815		96,992		4,610		5,258
CMO		27,876		28,476		-		-
ABS		5,208		6,780		-		-
SBA certificates		1,619		1,631		-		-
Mortgage-backed securities		48,508		49,496		402		435
	$	175,026	$	183,375	$	5,012	$	5,693

- 11 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Information pertaining to investment securities with gross unrealized losses at March 31, 2015, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, follows:

	Number				Gross
	of Investment		Fair		Unrealized
	Positions		Value		Losses
	(Dollars in thousands)
Securities available for sale:
Continuous loss position less than twelve months:
Agency mortgage-backed		1	$	1,204	$	1
Agency CMO		2		436		6
Municipal obligations		5		3,115		42
Total less than twelve months		8		4,755		49
Continuous loss position more than twelve months:
Agency bonds and notes		1		1,995		6
Agency mortgage-backed		2		2,218		12
Agency CMO		3		8,664		97
Municipal obligations		2		1,280		4
Total more than twelve months		8		14,157		119
Total securities available for sale		16	$	18,912	$	168

At March 31, 2015, the Company did not have any securities held to maturity with an unrealized loss.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

The total available for sale debt securities in loss positions at March 31, 2015, which consisted of U.S. government agency notes, mortgage-backed securities and CMOs, and municipal bonds, had depreciated approximately 0.88% from their amortized cost basis and are fixed and variable rate securities with a weighted-average yield of 1.58% and a weighted-average coupon rate of 3.28% at March 31, 2015. All of the agency and municipal securities are issued by U.S. government-sponsored enterprises and municipal governments, and are generally secured by first mortgage loans and municipal project revenues.

- 12 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The Company evaluates the existence of a potential credit loss component related to the decline in fair value of the privately-issued CMO and ABS portfolios each quarter using an independent third party analysis. At March 31, 2015, the Company held twenty privately-issued CMO and ABS securities acquired in a 2009 bank acquisition with an aggregate carrying value of $2.8 million and fair value of $4.1 million that have been downgraded to a substandard regulatory classification due to a downgrade of the security’s credit quality rating by various rating agencies.

At March 31, 2015, there were no privately-issued CMOs or ABS in loss positions. Based on the independent third party analysis of the expected cash flows, management has determined that no other-than-temporary impairment is required to be recognized on the privately-issued CMO and ABS portfolios. While the Company did not recognize a credit-related impairment loss at March 31, 2015, additional deterioration in market and economic conditions may have an adverse impact on the credit quality in the future and therefore, require a credit-related impairment charge.

The unrealized losses on U.S. government agency notes, mortgage-backed securities and CMOs, and municipal bonds relate principally to current interest rates for similar types of securities. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. As management has the ability to hold debt securities to maturity, or for the foreseeable future if classified as available for sale, no declines are deemed to be other-than-temporary.

During the six-month period ended March 31, 2015, the Company did not realize any gross gains or losses on sales of available for sale securities. During the six-month period ended March 31, 2014, the Company realized gross gains on sales of available for sale U.S. government agency notes of $1,000. The Company did not realize any gains or losses on sales of available for sale securities during the three-month periods ended March 31, 2015 and 2014.

Certain available for sale debt securities were pledged under repurchase agreements and to secure FHLB borrowings at March 31, 2015 and September 30, 2014, and may be pledged to secure federal funds borrowings.

- 13 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

3. Loans and Allowance for Loan Losses

Loans at March 31, 2015 and September 30, 2014 consisted of the following:

	March 31,			September 30,
	2015			2014
	(In thousands)
Real estate mortgage:
1-4 family residential	$	180,155		$	182,743
Commercial		163,855			153,896
Multifamily residential		23,097			21,286
Residential construction		17,301			14,528
Commercial construction		7,791			8,354
Land and land development		11,738			11,290
Commercial business loans		30,240			28,448
Consumer:
Home equity loans		17,828			17,903
Auto loans		5,480			5,619
Other consumer loans		2,211			2,320
Gross loans		459,696			446,387
Undisbursed portion of construction loans		(8,110	)		(6,271	)
Principal loan balance		451,586			440,116
Deferred loan origination fees and costs, net		(48	)		10
Allowance for loan losses		(6,514	)		(6,250	)
Loans, net	$	445,024		$	433,876

During the six-month period ended March 31, 2015, there was no significant change in the Company’s lending activities or methodology used to estimate the allowance for loan losses as disclosed in the Company’s Annual Report on Form 10-K for the year ended September 30, 2014.

- 14 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The following table provides the components of the recorded investment in loans as of March 31, 2015:

	Residential Real Estate		Commercial Real Estate			Multifamily			Construction			Land & Land Development		Commercial Business			Consumer		Total
	(In thousands)
Recorded Investment in Loans:
Principal loan balance	$	180,155	$	163,855		$	23,097		$	16,982		$	11,738	$	30,240		$	25,519	$	451,586
Accrued interest receivable		552		417			55			29			29		88			57		1,227
Net deferred loan origination fees and costs		306		(279	)		(25	)		(50	)		4		(7	)		3		(48	)
Recorded investment in loans	$	181,013	$	163,993		$	23,127		$	16,961		$	11,771	$	30,321		$	25,579	$	452,765
Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	4,535	$	5,671		$	-		$	-		$	-	$	369		$	327	$	10,902
Collectively evaluated for impairment		176,004		158,322			23,127			16,961			11,771		29,952			25,221		441,358
Acquired with deteriorated credit quality		474		-			-			-			-		-			31		505
Ending balance	$	181,013	$	163,993		$	23,127		$	16,961		$	11,771	$	30,321		$	25,579	$	452,765

- 15 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The following table provides the components of the recorded investment in loans as of September 30, 2014:

	Residential Real Estate		Commercial Real Estate			Multifamily			Construction			Land & Land Development		Commercial Business			Consumer		Total
	(In thousands)
Recorded Investment in Loans:
Principal loan balance	$	182,743	$	153,896		$	21,286		$	16,611		$	11,290	$	28,448		$	25,842	$	440,116
Accrued interest receivable		590		384			53			44			31		111			63		1,276
Net deferred loan origination fees and costs		337		(252	)		(28	)		(54	)		4		(9	)		12		10
Recorded investment in loans	$	183,670	$	154,028		$	21,311		$	16,601		$	11,325	$	28,550		$	25,917	$	441,402
Recorded Investment in Loans as Evaluated for Impairment:
Individually evaluated for impairment	$	4,866	$	5,705		$	-		$	-		$	-	$	145		$	350	$	11,066
Collectively evaluated for impairment		178,298		148,323			21,311			16,601			11,325		28,405			25,535		429,798
Acquired with deteriorated credit quality		506		-			-			-			-		-			32		538
Ending balance	$	183,670	$	154,028		$	21,311		$	16,601		$	11,325	$	28,550		$	25,917	$	441,402

- 16 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

An analysis of the allowance for loan losses as of March 31, 2015 is as follows:

	Residential Real Estate		Commercial Real Estate		Multifamily		Construction		Land & Land Development		Commercial Business		Consumer		Total
	(In thousands)
Ending Allowance Balance Attributable to Loans:
Individually evaluated for impairment	$	10	$	1	$	-	$	-	$	-	$	48	$	6	$	65
Collectively evaluated for impairment		447		4,108		163		455		316		838		122		6,449
Acquired with deteriorated credit quality		-		-		-		-		-		-		-		-
Ending balance	$	457	$	4,109	$	163	$	455	$	316	$	886	$	128	$	6,514

An analysis of the allowance for loan losses as of September 30, 2014 is as follows:

	Residential Real Estate		Commercial Real Estate		Multifamily		Construction		Land & Land Development		Commercial Business		Consumer		Total
	(In thousands)
Ending Allowance Balance Attributable to Loans:
Individually evaluated for impairment	$	13	$	-	$	-	$	-	$	-	$	-	$	8	$	21
Collectively evaluated for impairment		564		3,808		146		443		302		795		171		6,229
Acquired with deteriorated credit quality		-		-		-		-		-		-		-		-
Ending balance	$	577	$	3,808	$	146	$	443	$	302	$	795	$	179	$	6,250

- 17 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

An analysis of the changes in the allowance for loan losses for the three months ended March 31, 2015 is as follows:

	Residential Real Estate			Commercial Real Estate			Multifamily		Construction		Land & Land Development		Commercial Business		Consumer			Total
	(In thousands)
Changes in Allowance for Loan Losses:
Beginning balance	$	442		$	4,217		$	163	$	344	$	299	$	826	$	159		$	6,450
Provisions		145			(108	)		-		111		17		59		(12	)		212
Charge-offs		(131	)		-			-		-		-		-		(41	)		(172	)
Recoveries		1			-			-		-		-		1		22			24
Ending balance	$	457		$	4,109		$	163	$	455	$	316	$	886	$	128		$	6,514

An analysis of the changes in the allowance for loan losses for the six months ended March 31, 2015 is as follows:

	Residential Real Estate			Commercial Real Estate		Multifamily		Construction		Land & Land Development		Commercial Business		Consumer			Total
	(In thousands)
Changes in Allowance for Loan Losses:
Beginning balance	$	577		$	3,808	$	146	$	443	$	302	$	795	$	179		$	6,250
Provisions		(2	)		301		17		12		14		90		(13	)		419
Charge-offs		(143	)		-		-		-		-		-		(73	)		(216	)
Recoveries		25			-		-		-		-		1		35			61
Ending balance	$	457		$	4,109	$	163	$	455	$	316	$	886	$	128		$	6,514

- 18 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

An analysis of the changes in the allowance for loan losses for the three months ended March 31, 2014 is as follows:

	Residential Real Estate			Commercial Real Estate			Multifamily		Construction			Land & Land Development			Commercial Business			Consumer			Total
	(In thousands)
Changes in Allowance for Loan Losses:
Beginning balance	$	660		$	3,080		$	253	$	255		$	367		$	1,070		$	286		$	5,971
Provisions		(15	)		504			18		(33	)		(11	)		(163	)		3			303
Charge-offs		(21	)		(144	)		-		-			-			-			(69	)		(234	)
Recoveries		2			-			-		-			-			-			18			20
Ending balance	$	626		$	3,440		$	271	$	222		$	356		$	907		$	238		$	6,060

An analysis of the changes in the allowance for loan losses for the six months ended March 31, 2014 is as follows:

	Residential Real Estate			Commercial Real Estate			Multifamily		Construction			Land & Land Development		Commercial Business		Consumer			Total
	(In thousands)
Changes in Allowance for Loan Losses:
Beginning balance	$	780		$	2,826		$	249	$	229		$	299	$	907	$	248		$	5,538
Provisions		(61	)		539			22		(7	)		57		-		54			604
Charge-offs		(97	)		(144	)		-		-			-		-		(99	)		(340	)
Recoveries		4			219			-		-			-		-		35			258
Ending balance	$	626		$	3,440		$	271	$	222		$	356	$	907	$	238		$	6,060

- 19 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table presents impaired loans individually evaluated for impairment as of March 31, 2015 and for the three and six months ended March 31, 2015 and 2014.

	At March 31, 2015						Three Months Ended March 31,								Six Months Ended March 31,
							2015		2015		2014		2014		2015		2015		2014		2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
	(In thousands)
Loans with no related allowance recorded:
Residential real estate	$	4,712	$	5,319	$	-	$	5,685	$	37	$	6,023	$	34	$	5,729	$	72	$	6,166	$	65
Commercial real estate		5,648		5,687		-		5,689		55		5,822		53		5,702		113		5,934		111
Multifamily		-		-		-		-		-		2,227		28		-		-		2,234		56
Construction		-		-		-		-		-		-		-		-		-		-		-
Land and land development		-		-		-		-		-		-		-		-		-		-		-
Commercial business		321		306		-		254		1		446		1		216		1		446		1
Consumer		226		231		-		238		1		298		1		248		3		310		3
	$	10,907	$	11,543	$	-	$	11,866	$	94	$	14,816	$	117	$	11,895	$	189	$	15,090	$	236
Loans with an allowance recorded:
Residential real estate	$	75	$	73	$	10	$	142	$	-	$	55	$	-	$	152	$	-	$	55	$	-
Commercial real estate		23		22		1		6		-		-		-		3		-		-		-
Multifamily		-		-		-		-		-		-		-		-		-		-		-
Construction		-		-		-		-		-		-		-		-		-		-		-
Land and land development		-		-		-		-		-		-		-		-		-		-		-
Commercial business		48		48		48		12		-		-		-		7		-		-		-
Consumer		101		101		6		85		-		97		-		91		-		96		-
	$	247	$	244	$	65	$	245	$	-	$	152	$	-	$	253	$	-	$	151	$	-
Total:
Residential real estate	$	4,787	$	5,392	$	10	$	5,827	$	37	$	6,078	$	34	$	5,881	$	72	$	6,221	$	65
Commercial real estate		5,671		5,709		1		5,695		55		5,822		53		5,705		113		5,934		111
Multifamily		-		-		-		-		-		2,227		28		-		-		2,234		56
Construction		-		-		-		-		-		-		-		-		-		-		-
Land and land development		-		-		-		-		-		-		-		-		-		-		-
Commercial business		369		354		48		266		1		446		1		223		1		446		1
Consumer		327		332		6		323		1		395		1		339		3		406		3
	$	11,154	$	11,787	$	65	$	12,111	$	94	$	14,968	$	117	$	12,148	$	189	$	15,241	$	236

The Company recognized $5,000 and $41,000 of interest income on an impaired commercial real estate loan using the cash receipts method during the six-month periods ended March 31, 2015 and 2014, respectively. The Company did not recognize any interest income using the cash receipts method during the three-month periods ended March 31, 2015 and 2014.

- 20 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The following table presents impaired loans individually evaluated for impairment as of September 30, 2014.

	Recorded Investment		Unpaid Principal Balance		Related Allowance
	(In thousands)
Loans with no related allowance recorded:
Residential real estate	$	4,974	$	5,426	$	-
Commercial real estate		5,705		5,739		-
Multifamily		-		-		-
Construction		-		-		-
Land and land development		-		-		-
Commercial business		145		133		-
Consumer		255		258		-
	$	11,079	$	11,556	$	-
Loans with an allowance recorded:
Residential real estate	$	167	$	166	$	13
Commercial real estate		-		-		-
Multifamily		-		-		-
Construction		-		-		-
Land and land development		-		-		-
Commercial business		-		-		-
Consumer		95		95		8
	$	262	$	261	$	21
Total:
Residential real estate	$	5,141	$	5,592	$	13
Commercial real estate		5,705		5,739		-
Multifamily		-		-		-
Construction		-		-		-
Land and land development		-		-		-
Commercial business		145		133		-
Consumer		350		353		8
	$	11,341	$	11,817	$	21

- 21 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Nonperforming loans consists of nonaccrual loans and loans over 90 days past due and still accruing interest. The following table presents the recorded investment in nonperforming loans at March 31, 2015:

	Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans
	(In thousands)
Residential real estate	$	1,893	$	625	$	2,518
Commercial real estate		397		-		397
Multifamily		-		294		294
Construction		-		-		-
Land and land development		-		-		-
Commercial business		350		106		456
Consumer		199		24		223
Total	$	2,839	$	1,049	$	3,888

The following table presents the recorded investment in nonperforming loans at September 30, 2014:

	Nonaccrual Loans		Loans 90+ Days Past Due Still Accruing		Total Nonperforming Loans
	(In thousands)
Residential real estate	$	2,431	$	458	$	2,889
Commercial real estate		1,034		-		1,034
Multifamily		-		-		-
Construction		-		-		-
Land and land development		-		-		-
Commercial business		123		-		123
Consumer		216		20		236
Total	$	3,804	$	478	$	4,282

- 22 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The following table presents the aging of the recorded investment in past due loans at March 31, 2015:

	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Residential real estate	$	3,951	$	197	$	1,770	$	5,918	$	175,095	$	181,013
Commercial real estate		1,529		125		196		1,850		162,143		163,993
Multifamily		-		-		294		294		22,833		23,127
Construction		-		-		-		-		16,961		16,961
Land and land development		5		-		-		5		11,766		11,771
Commercial business		11		31		456		498		29,823		30,321
Consumer		116		24		61		201		25,378		25,579
Total	$	5,612	$	377	$	2,777	$	8,766	$	443,999	$	452,765

The following table presents the aging of the recorded investment in past due loans at September 30, 2014:

	30-59 Days Past Due		60-89 Days Past Due		90 + Days Past Due		Total Past Due		Current		Total Loans
	(In thousands)
Residential real estate	$	4,493	$	1,639	$	1,823	$	7,955	$	175,715	$	183,670
Commercial real estate		115		54		59		228		153,800		154,028
Multifamily		297		-		-		297		21,014		21,311
Construction		-		-		-		-		16,601		16,601
Land and land development		6		205		-		211		11,114		11,325
Commercial business		259		-		123		382		28,168		28,550
Consumer		39		79		72		190		25,727		25,917
Total	$	5,209	$	1,977	$	2,077	$	9,263	$	432,139	$	441,402

- 23 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, public information, historical payment experience, credit documentation, and current economic conditions and trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings:

Special Mention: Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company’s credit position at some future date.

Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss: Loans classified as loss are considered uncollectible and of such little value that their continuance on the Company’s books as an asset is not warranted.

- 24 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass-rated loans. As of March 31, 2015, and based on the most recent analysis performed, the recorded investment in loans by risk category was as follows:

	Residential Real Estate		Commercial Real Estate		Multifamily		Construction		Land and Land Development		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	170,437	$	145,326	$	23,127	$	16,961	$	11,670	$	29,738	$	25,152	$	422,411
Special Mention		4,436		13,733		-		-		5		211		77		18,462
Substandard		5,942		4,934		-		-		96		372		344		11,688
Doubtful		198		-		-		-		-		-		6		204
Loss		-		-		-		-		-		-		-		-
Total	$	181,013	$	163,993	$	23,127	$	16,961	$	11,771	$	30,321	$	25,579	$	452,765

As of September 30, 2014, the recorded investment in loans by risk category was as follows:

	Residential Real Estate		Commercial Real Estate		Multifamily		Construction		Land and Land Development		Commercial Business		Consumer		Total
	(In thousands)
Pass	$	172,822	$	138,854	$	21,311	$	16,601	$	11,206	$	28,127	$	25,471	$	414,392
Special Mention		4,233		10,226		-		-		6		278		89		14,832
Substandard		6,398		4,948		-		-		113		145		350		11,954
Doubtful		217		-		-		-		-		-		7		224
Loss		-		-		-		-		-		-		-		-
Total	$	183,670	$	154,028	$	21,311	$	16,601	$	11,325	$	28,550	$	25,917	$	441,402

- 25 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Troubled Debt Restructurings

Modification of a loan is considered to be a troubled debt restructuring (“TDR”) if the debtor is experiencing financial difficulties and the Company grants a concession to the debtor that it would not otherwise consider. By granting the concession, the Company expects to obtain more cash or other value from the debtor, or to increase the probability of receipt, than would be expected by not granting the concession. The concession may include, but is not limited to, reduction of the stated interest rate of the loan, reduction of accrued interest, extension of the maturity date or reduction of the face amount or maturity amount of the debt. A concession will be granted when, as a result of the restructuring, the Company does not expect to collect all amounts due, including interest at the original stated rate. A concession may also be granted if the debtor is not able to access funds elsewhere at a market rate for debt with similar risk characteristics as the restructured debt. The Company’s determination of whether a loan modification is a TDR considers the individual facts and circumstances surrounding each modification.

Loans modified in a TDR may be retained on accrual status if the borrower has maintained a period of performance in which the borrower’s lending relationship was not greater than ninety days delinquent at the time of restructuring and the Company determines the future collection of principal and interest is reasonably assured. Loans modified in a TDR that are placed on nonaccrual status at the time of restructuring will continue on nonaccrual status until the Company determines the future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate a period of performance according to the restructured terms of at least six consecutive months.

The following table summarizes the Company’s recorded investment in TDRs at March 31, 2015 and September 30, 2014. There was no specific reserve included in the allowance for loan losses related to TDRs at March 31, 2015 and September 30, 2014.

	Accruing		Nonaccrual		Total
	(In thousands)
March 31, 2015:
Residential real estate	$	2,894	$	147	$	3,041
Commercial real estate		5,274		-		5,274
Commercial business		19		-		19
Consumer		128		-		128
Total	$	8,315	$	147	$	8,462
September 30, 2014:
Residential real estate	$	2,710	$	214	$	2,924
Commercial real estate		4,671		696		5,367
Commercial business		22		-		22
Consumer		134		-		134
Total	$	7,537	$	910	$	8,447

- 26 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The following table summarizes information in regard to TDRs that were restructured during the three- and six-month periods ended March 31, 2015 and 2014:

	Number of Loans		Pre- Modification Principal Balance		Post- Modification Principal Balance
	(In thousands)
March 31, 2015:
Six Months Ended March 31, 2015:
Residential real estate		2	$	165	$	172
Total		2	$	165	$	172
March 31, 2014:
Three Months Ended March 31, 2014:
Residential real estate		1	$	42	$	42
Total		1	$	42	$	42
Six Months Ended March 31, 2014:
Residential real estate		3	$	139	$	159
Commercial real estate		1		716		724
Total		4	$	855	$	883

There were no loans modified in a TDR during the three months ended March 31, 2015.

For the TDRs listed above, the terms of modification included reduction of the stated interest rate and extension of the maturity date where the debtor was unable to access funds elsewhere at a market interest rate for debt with similar risk characteristics.

The Company had not committed to lend any additional amounts as of March 31, 2015 and September 30, 2014 to customers with outstanding loans classified as TDRs at such dates.

There were no principal charge-offs recorded as a result of TDRs during the six-month periods ended March 31, 2015 and 2014. There was no specific allowance for loan losses related to TDRs modified during the six-month periods ended March 31, 2015 and 2014. In the event that a TDR subsequently defaults, the Company evaluates the restructuring for possible impairment. As a result, the related allowance for loan losses may be increased or charge-offs may be taken to reduce the carrying amount of the loan.

During the six-month period ended March 31, 2015, the Company did not have any TDRs that were modified within the previous twelve months and for which there was a payment default (defined as more than 90 days past due or in the process of foreclosure). During the six-month period ended March 31, 2014, the Company had two TDRs totaling $489,000 that was modified within the previous twelve months and for which there were a payment default. No charge-offs were recognized for TDRs with subsequent payment defaults for the six-month periods ended March 31, 2015 and 2014.

- 27 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

4. Real Estate Development and Construction

The Company is developing a parcel of land in New Albany, Indiana for retail purposes through the Bank’s subsidiary, FFCC. The total cost of the development is expected to be approximately $7.7 million, including the $7.5 million paid as of March 31, 2015. The development costs were partially funded by a loan from another financial institution. The development is substantially completed, with only certain tenant improvements in a multi-tenant retail building to be completed for current and future lessees, and nine tenants have commenced occupancy as of March 31, 2015. The development plans provide for up to twelve tenants when fully occupied.

Depreciation expense of $49,000 and $98,000 was recognized for real estate development and construction for the three- and six-month periods ended March 31, 2015, respectively. Depreciation expense of $47,000 and $94,000 was recognized for real estate development and construction for the three- and six-month periods ended March 31, 2014, respectively.

As a result of the Bank’s conversion to an Indiana-chartered commercial bank and entry in the Federal Reserve System on December 19, 2014, the Company is required under federal regulations to divest of its commercial real estate development by December 19, 2016 but may apply to the Federal Reserve System for extension of the conformance period for up to three additional years, in three one-year increments. The Company is required under Indiana statute to divest of its commercial real estate development within a ten-year period, or prior to December 19, 2024. In connection with its charter conversion, the Bank has committed under a plan of divestiture filed with the Indiana Department of Financial Institutions to divest of the commercial real estate development prior to December 31, 2017, which may require approval from the Federal Reserve System for extension of the federal conformance period beyond December 19, 2016.

5. Investment in Historic Tax Credit Entity

On October 15, 2014, the Company entered into an agreement to participate in the rehabilitation of a certified historic structure located in Louisville, Kentucky with a regional commercial developer. As part of the agreement, the Bank committed to invest $4.2 million into a limited liability company organized in the state of Kentucky by the commercial developer, for which it received a 99% equity interest in the entity and will receive an allocation of 99% of the operating profit and losses and any historic tax credits generated by the entity. The tax credits expected to be allocated to the Bank include federal rehabilitation investment credits totaling $4.6 million available under Internal Revenue Code Section 47. The Bank invested $417,000 on October 15, 2014 and has committed to invest an additional $417,000 when the project is 50% completed and the remaining $3.3 million when the project is fully completed and the certificate of occupancy is received. The project is expected to be fully completed in December 2015.

The Bank’s investment in the historic tax credit entity is accounted for under the equity method of accounting. At March 31, 2015, the Bank’s investment of $4.2 million was included in other assets and its unfunded capital contribution commitment of $3.8 million was included in other liabilities in the accompanying consolidated balance sheet.

- 28 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

5. Supplemental Disclosure for Earnings Per Share

When presented, basic earnings per share are computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Earnings per share information is presented below for the three- and six-month periods ended March 31, 2015 and 2014.

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2015			2014			2015			2014
	(Dollars in thousands, except per share data)
Basic:
Earnings:
Net income	$	1,527		$	1,536		$	2,727		$	2,564
Less: Preferred stock dividends declared		(43	)		(43	)		(86	)		(86	)
Net income available to common shareholders	$	1,484		$	1,493		$	2,641		$	2,478
Shares:
Weighted average common shares outstanding		2,138,931			2,140,414			2,125,369			2,149,426
Net income per common share, basic	$	0.69		$	0.70		$	1.24		$	1.15
Diluted:
Earnings:
Net income	$	1,527		$	1,536		$	2,727		$	2,564
Less: Preferred stock dividends declared		(43	)		(43	)		(86	)		(86	)
Net income available to common shareholders	$	1,484		$	1,493		$	2,641		$	2,478
Shares:
Weighted average common shares outstanding		2,138,931			2,140,414			2,125,369			2,149,426
Add: Dilutive effect of outstanding options		96,436			93,337			96,967			91,359
Add: Dilutive effect of restricted stock		10,004			15,210			9,238			14,214
Weighted average common shares outstanding as adjusted		2,245,371			2,248,961			2,231,574			2,254,999
Net income per common share, diluted	$	0.66		$	0.66		$	1.18		$	1.10

Unearned ESOP and nonvested restricted stock shares are not considered as outstanding for purposes of computing weighted average common shares outstanding.

- 29 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

7. Supplemental Disclosures of Cash Flow Information

	Six Months Ended
	March 31,
	2015		2014
	(In thousands)
Cash payments for:
Interest	$	1,953	$	1,945
Taxes		864		620
Transfers from loans to foreclosed real estate		398		776
Proceeds from sales of foreclosed real estate financed through loans		290		496

8. Fair Value Measurements and Disclosures about Fair Value of Financial Instruments

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 820, Fair Value Measurements, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted market price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

Level 2: Inputs to the valuation methodology include quoted market prices for similar assets or liabilities in active markets; quoted market prices for identical or similar assets or liabilities in markets that are not active; or inputs that are derived principally from or can be corroborated by observable market data by correlation or other means.

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets carried at fair value or the lower of cost or fair value. The tables below present the balances of financial assets measured at fair value on a recurring and nonrecurring basis as of March 31, 2015 and September 30, 2014. The Company had no liabilities measured at fair value as of March 31, 2015 or September 30, 2014.

- 30 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Carrying Value
	Level 1		Level 2		Level 3		Total
	(In thousands)
March 31, 2015:
Assets Measured - Recurring Basis:
Trading account securities	$	-	$	5,229	$	-	$	5,229
Securities available for sale:
Agency bonds and notes	$	-	$	9,101	$	-	$	9,101
Agency mortgage-backed		-		49,496		-		49,496
Agency CMO		-		24,764		-		24,764
Privately-issued CMO		-		3,712		-		3,712
Privately-issued ABS		-		6,780		-		6,780
SBA certificates		-		1,631		-		1,631
Municipal		-		87,891		-		87,891
Total securities available for sale	$	-	$	183,375	$	-	$	183,375
Assets Measured - Nonrecurring Basis:
Impaired loans:
Residential real estate	$	-	$	-	$	4,777	$	4,777
Commercial real estate		-		-		5,670		5,670
Commercial business		-		-		321		321
Consumer		-		-		321		321
Total impaired loans	$	-	$	-	$	11,089	$	11,089
Loans held for sale	$	-	$	320	$	-	$	320
Other real estate owned, held for sale:
Residential real estate	$	-	$	-	$	394	$	394
Commercial real estate		-		-		100		100
Land and land development		-		-		58		58
Total other real estate owned	$	-	$	-	$	552	$	552

- 31 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Carrying Value
	Level 1		Level 2		Level 3		Total
	(In thousands)
September 30, 2014:
Assets Measured - Recurring Basis:
Trading account securities	$	-	$	5,319	$	-	$	5,319
Securities available for sale:
Agency bonds and notes	$	-	$	12,091	$	-	$	12,091
Agency mortgage-backed		-		52,255		-		52,255
Agency CMO		-		29,484		-		29,484
Privately-issued CMO		-		3,920		-		3,920
Privately-issued ABS		-		7,353		-		7,353
SBA certificates		-		1,762				1,762
Municipal		-		77,832		-		77,832
Total securities available for sale	$	-	$	184,697	$	-	$	184,697
Interest rate cap contract	$	-	$	1	$	-	$	1
Assets Measured - Nonrecurring Basis:
Impaired loans:
Residential real estate	$	-	$	-	$	5,128	$	5,128
Commercial real estate		-		-		5,705		5,705
Commercial business		-		-		145		145
Consumer		-		-		342		342
Total impaired loans	$	-	$	-	$	11,320	$	11,320
Loans held for sale	$	-	$	281	$	-	$	281
Other real estate owned, held for sale:
Residential real estate	$	-	$	-	$	518	$	518
Commercial real estate		-		-		377		377
Land and land development		-		-		58		58
Total other real estate owned	$	-	$	-	$	953	$	953

Fair value is based upon quoted market prices where available. If quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters or a matrix pricing model that employs the Bond Market Association’s standard calculations for cash flow and price/yield analysis and observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, or the lower of cost or fair value. These adjustments may include unobservable parameters. Any such valuation adjustments have been applied consistently over time.

- 32 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. There were no changes in the valuation techniques and related inputs used for assets measured at fair value during the six-month period ended March 31, 2015.

Trading Account Securities and Securities Available for Sale. Securities classified as trading and available for sale are reported at fair value on a recurring basis.  These securities are classified as Level 1 of the valuation hierarchy where quoted market prices from reputable third-party brokers are available in an active market. If quoted market prices are not available, the Company obtains fair value measurements from an independent pricing service. These securities are reported using Level 2 inputs and the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. Changes in fair value of trading account securities are reported in noninterest income. Changes in fair value of securities available for sale are recorded in other comprehensive income, net of income tax effect.

Derivative Financial Instruments. Derivative financial instruments consist of an interest rate cap contract. As such, significant fair value inputs can generally be verified by counterparties and do not involve significant management judgments (Level 2 inputs).

Impaired Loans. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. The fair value of impaired loans is classified as Level 3 in the fair value hierarchy.

Impaired loans are measured at the present value of estimated future cash flows using the loan's effective interest rate or the fair value of the collateral if the loan is a collateral-dependent loan. Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and its fair value is generally determined based on real estate appraisals or other independent evaluations by qualified professionals. The appraisals are generally then discounted by management in order to reflect management’s estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. At March 31, 2015 and September 30, 2014, the significant unobservable inputs used in the fair value measurement of impaired loans included a discount from appraised value ranging from 0.0% to 15.0% and estimated costs to sell the collateral ranging from 0.0% to 6.0%. During the three-month period ended March 31, 2015, the Company recognized provisions for loan losses of $49,000 for impaired loans. No provision for loan losses was recognized for the three-month period ended March 31, 2014 for impaired loans. During the six-month periods ended March 31, 2015 and 2014, the Company recognized provisions for loan losses of $49,000 and $2,000, respectively, for impaired loans.

- 33 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Loans Held for Sale. Loans held for sale are carried at the lower of cost or market value. The portfolio is comprised of residential real estate loans and fair value is based on specific prices of underlying contracts for sales to investors. The fair value of loans held for sale is classified as Level 2 in the fair value hierarchy.

Other Real Estate Owned. Other real estate owned held for sale is reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. The fair value of other real estate owned is classified as Level 3 in the fair value hierarchy.

Other real estate owned is reported at fair value less estimated costs to dispose of the property. The fair values are determined by real estate appraisals which are then generally discounted by management in order to reflect management’s estimate of the fair value of the property given current market conditions and the condition of the property. At March 31, 2015, the significant unobservable inputs used in the fair value measurement of other real estate owned included a discount from appraised value ranging from 15.0% to 56.5% with a weighted average of 23.2%. At September 30, 2014, the significant unobservable inputs used in the fair value measurement of other real estate owned included a discount from appraised value ranging from 13.3% to 50.0% with a weighted average of 18.7%. The Company recognized charges of $3,000 and $33,000 to write down other real estate owned to fair value for the three and six months ended March 31, 2015, respectively. The Company recognized charges of $65,000 and $102,000 to write down other real estate owned to fair value for the three and six months ended March 31, 2014, respectively.

Transfers Between Categories. There were no transfers into or out of Level 3 financial assets for the six-month periods ended March 31, 2015 and 2014. In addition, there were no transfers into or out of Levels 1 and 2 of the fair value hierarchy during the six-month periods ended March 31, 2015 and 2014.

- 34 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

GAAP requires disclosure of fair value information about financial instruments for interim reporting periods, whether or not recognized in the consolidated balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company's financial instruments are as follows:

	Carrying		Fair Value Measurements Using:
March 31, 2015:	Amount		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Cash and due from banks	$	9,875	$	9,875	$	-	$	-
Interest-bearing deposits with banks		10,322		10,322		-		-
Interest-bearing time deposits		2,235		-		2,239		-
Trading account securities		5,229		-		5,229		-
Securities available for sale		183,375		-		183,375		-
Securities held to maturity		5,012		-		5,693		-
Loans, net		445,024		-		-		444,998
Loans held for sale		320		-		320		-
FRB and FHLB stock		7,462		-		7,462		-
Accrued interest receivable		2,510		-		2,510		-
Investment in historic tax credit entity (included in other assets)		4,169		-		4,169		-
Financial liabilities:
Deposits		536,937		-		-		540,128
Short-term repurchase agreements		1,340		-		1,340		-
Borrowings from FHLB		81,554		-		83,260		-
Other long-term debt		4,724		-		4,724		-
Accrued interest payable		179		-		179		-
Advance payments by borrowers for taxes and insurance		747		-		747		-

- 35 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

	Carrying		Fair Value Measurements Using:
September 30, 2014:	Amount		Level 1		Level 2		Level 3
	(In thousands)
Financial assets:
Cash and due from banks	$	8,853	$	8,853	$	-	$	-
Interest-bearing deposits with banks		11,477		11,477		-		-
Interest-bearing time deposits		1,500		-		1,496		-
Trading account securities		5,319		-		5,319		-
Securities available for sale		184,697		-		184,697		-
Securities held to maturity		5,419		-		5,849		-
Loans, net		433,876		-		-		434,023
Loans held for sale		281		-		281		-
FHLB stock		6,517		-		6,517		-
Accrued interest receivable		2,511		-		2,511		-
Interest rate cap (included in other assets)		1		-		1		-
Financial liabilities:
Deposits		533,194		-		-		535,364
Short-term repurchase agreements		1,338		-		1,338		-
Borrowings from FHLB		79,548		-		79,455		-
Other long-term debt		4,812		-		4,812		-
Accrued interest payable		175		-		175		-
Advance payments by borrowers for taxes and insurance		748		-		748		-

The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value:

- 36 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

Cash and Cash Equivalents

For cash and short-term instruments, including cash and due from banks and interest-bearing deposits with banks, the carrying amount is a reasonable estimate of fair value.

Investment Securities and Interest-Bearing Time Deposits

For debt securities and interest-bearing time deposits, the Company obtains fair value measurements from an independent pricing service and the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security’s terms and conditions, among other factors. For FRB and FHLB stock, which are restricted equity securities, the carrying amount is a reasonable estimate of fair value because they are not marketable.

Loans

The fair value of loans, excluding loans held for sale, is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and terms. Impaired loans are valued at the lower of their carrying value or fair value, as previously described. The carrying amount of accrued interest receivable approximates its fair value.

The fair value of loans held for sale is estimated based on specific prices of underlying contracts for sales to investors, as previously described.

Deposits

The fair value of demand and savings deposits and other transaction accounts is the amount payable on demand at the balance sheet date. The fair value of fixed-maturity time deposits is estimated by discounting the future cash flows using the rates currently offered for deposits with similar remaining maturities. The carrying amount of accrued interest payable approximates its fair value.

Borrowed Funds

Borrowed funds include borrowings from the FHLB, repurchase agreements and other long-term debt. Fair value for FHLB advances and long-term repurchase agreements is estimated by discounting the future cash flows at current interest rates for FHLB advances of similar maturities. For short-term repurchase agreements, FHLB line of credit borrowings and other debt, the carrying value is a reasonable estimate of fair value.

- 37 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

9. Employee Stock Ownership Plan

On October 6, 2008, the Company established a leveraged employee stock ownership plan (“ESOP”) covering substantially all employees. The ESOP trust acquired 203,363 shares of Company common stock at a cost of $10.00 per share financed by a term loan with the Company. The employer loan and the related interest income are not recognized in the consolidated financial statements because the debt is serviced from Company contributions. Dividends payable on allocated shares are charged to retained earnings and are satisfied by the allocation of cash dividends to participant accounts or by utilizing the dividends as additional debt service on the ESOP loan. Dividends payable on unallocated shares are not considered dividends for financial reporting purposes. Shares held by the ESOP trust are allocated to participant accounts based on the ratio of the current year principal and interest payments to the total of the current year and future years’ principal and interest to be paid on the employer loan. Compensation expense is recognized based on the average fair value of shares released for allocation to participant accounts during the year with a corresponding credit to stockholders’ equity. Compensation expense recognized for the three- and six-month periods ended March 31, 2015 amounted to $113,000 and $600,000, respectively. Compensation expense recognized for the three- and six-month periods ended March 31, 2014 amounted to $93,000 and $521,000, respectively. Company common stock held by the ESOP trust at March 31, 2015 and September 30, 2014 was as follows:

	March 31,		September 30,
	2015		2014
Allocated shares		157,972		132,339
Unearned shares		28,073		53,706
Total ESOP shares		186,045		186,045
Fair value of unearned shares	$	813,000	$	1,341,000

10. Stock Based Compensation Plans

The Company’s 2010 Equity Incentive Plan (“Plan”), which the Company’s shareholders approved in February 2010, provides for the award of stock options, restricted shares and performance shares.  The aggregate number of shares of the Company’s common stock available for issuance under the Plan may not exceed 355,885 shares.  The Company may grant both non-statutory and statutory (i.e., incentive) stock options that may not have a term exceeding ten years.  An award of a performance share is a grant of a right to receive shares of the Company’s common stock contingent upon the achievement of specific performance criteria or other objectives set at the grant date.  Awards granted under the Plan may be granted either alone, in addition to, or in tandem with any other award granted under the Plan.  The terms of the Plan include a provision whereby all unearned options and shares become immediately exercisable and fully vested upon a change in control.

- 38 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

In April 2010, the Company funded a trust, administered by an independent trustee, which acquired 101,681 common shares in the open market at a price per share of $13.60 for a total cost of $1.4 million. These acquired common shares were later granted to directors, officers and key employees in the form of restricted stock in May 2010 at a price per share of $13.25 for a total of $1.3 million. The difference between the purchase price and grant price of the common shares issued as restricted stock, totaling $41,000, was recognized by the Company as a reduction of additional paid in capital. The restricted stock vests ratably over a five-year period from the grant date. Compensation expense is measured based on the fair market value of the restricted stock at the grant date and is recognized ratably over the period during which the shares are earned (the vesting period). Compensation expense related to restricted stock recognized for the three- and six-month periods ended March 31, 2015 amounted to $63,000 and $131,000, respectively. Compensation expense related to restricted stock recognized for the three- and six-month periods ended March 31, 2014 amounted to $65,000 and $130,000, respectively. A summary of the Company’s nonvested restricted shares activity under the Plan as of March 31, 2015 and changes during the six-month period then ended is presented below.

				Weighted
	Number			Average
	of			Grant Date
	Shares			Fair Value
Nonvested at October 1, 2014		19,610		$	13.25
Granted		-			-
Vested		(717	)	$	13.25
Forfeited		-			-
Nonvested at March 31, 2015		18,893		$	13.25

There were 717 restricted shares that vested during the six-month period ended March 31, 2015, upon the retirement of a director. The total fair value of restricted shares that vested during the six-month period ended March 31, 2015 was $18,000. There were no restricted shares granted or vested during the six-month period ended March 31, 2014. At March 31, 2015, there was $31,000 of total unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over the remaining vesting period of 0.13 years.

In May 2010, the Company awarded 177,549 incentive and 76,655 non-statutory stock options to directors, officers and key employees. The options granted vest ratably over five years and are exercisable in whole or in part for a period up to ten years from the date of the grant. Compensation expense is measured based on the fair market value of the options at the grant date and is recognized ratably over the period during which the shares are earned (the vesting period). The weighted average fair value at the grant date for options granted in 2010 was $3.09, as determined at the date of grant using the Binomial option pricing model.

- 39 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

A summary of stock option activity under the Plan as of March 31, 2015, and changes during the six-month period then ended is presented below.

				Weighted		Weighted
				Average		Average
	Number			Exercise		Remaining		Aggregate
	of			Price		Contractual		Intrinsic
	Shares			Per Share		Term (years)		Value
	(Dollars in thousands, except per share data)
Outstanding at October 1, 2014		234,232		$	13.25		5.6	$	2,743
Granted		-			-
Exercised		(20,972	)	$	13.25			$	250
Forfeited or expired		-			-
Outstanding at March 31, 2015		213,260		$	13.25		5.1	$	3,348
Exercisable at March 31, 2015		166,009		$	13.25		5.1	$	2,606

There were no stock options granted or exercised during the six-month period ended March 31, 2014. The Company recognized compensation expense related to stock options of $37,000 and $76,000 for the three- and six-month periods ended March 31, 2015, respectively. The Company recognized compensation expense related to stock options of $38,000 and $76,000 for the three- and six-month periods ended March 31, 2014. At March 31, 2015, there was $18,000 of unrecognized compensation expense related to nonvested stock options, which will be recognized over the remaining vesting period of 0.13 years.

- 40 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

11. Preferred Stock

On August 11, 2011, the Company entered into a Securities Purchase Agreement (“Purchase Agreement”) with the United States Department of the Treasury, pursuant to which the Company issued 17,120 shares of the its Senior Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”), having a liquidation amount per share equal to $1,000, for a total purchase price of $17,120,000. The Purchase Agreement was entered into, and the Series A Preferred Stock was issued, pursuant to the Small Business Lending Fund (“SBLF”) program, a $30 billion fund established under the Small Business Jobs Act of 2010, that encourages lending to small businesses by providing Tier 1 capital to qualified community banks with assets of less than $10 billion.

Holders of the Series A Preferred Stock are entitled to receive non-cumulative dividends, payable quarterly, on each January 1, April 1, July 1 and October 1, beginning October 1, 2011. The dividend rate, as a percentage of the liquidation amount, can fluctuate on a quarterly basis during the first ten quarters during which the Series A Preferred Stock is outstanding and may be adjusted between 1.0% and 5.0% per annum, to reflect the amount of change in the Bank’s level of Qualified Small Business Lending (“QSBL”) (as defined in the Purchase Agreement) over the baseline level calculated under the terms of the Purchase Agreement (“Baseline”).  In addition to the dividend, in the event the Bank’s level of QSBL has not increased relative to the Baseline, at the beginning of the tenth calendar quarter, the Company will be subject to an additional lending incentive fee equal to 2.0% per annum. For the eleventh dividend period through the eighteenth dividend period, inclusive, and that portion of the nineteenth dividend period before, but not including, the four and one half (4½) year anniversary of the date of issuance, the dividend rate will be fixed at between 1.0% and 7.0% per annum based upon the increase in QSBL as compared to the Baseline. After four and one half (4½) years from issuance, the dividend rate will increase to nine 9.0%. Based upon the Bank’s level of QSBL over the Baseline for purposes of calculating the dividend rate for the initial dividend period, the dividend rate for the initial dividend period ended September 30, 2011 was 4.84%. The dividend rate for the fifteenth dividend period ended March 31, 2015 was 1.0% and the weighted average dividend rate for the six-month period ended March 31, 2015 was 1.0%. The dividend rate for the sixteenth dividend period through the eighteenth dividend period will be 1.0%.

The Series A Preferred Stock is non-voting, except in limited circumstances. In the event that the Company fails to timely make five dividend payments, whether or not consecutive, the holder of the Series A Preferred Stock will have the right, but not the obligation, to appoint a representative as an observer on the Company’s board of directors.

The Series A Preferred Stock may be redeemed at any time at the Company’s option, at a redemption price of one hundred percent (100%) of the liquidation amount plus accrued but unpaid dividends to the date of redemption for the current period, subject to the approval of its federal banking regulator.

The Series A Preferred Stock was issued in a private placement exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended. The Company has agreed to register the Series A Preferred Stock under certain circumstances set forth in the Purchase Agreement. The Series A Preferred Stock is not subject to any contractual restrictions on transfer.

- 41 -

FIRST SAVINGS FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

(Unaudited)

12. Recent Accounting Pronouncements

The following are summaries of recently issued accounting pronouncements that impact the accounting and reporting practices of the Company:

In January 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40), Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The objective of the amendments in this update is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The amendments in the update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor, and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in the update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The adoption of this update is not expected to have a material impact on the Company’s consolidated financial position or results of operations.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides a five-step revenue recognition model for all revenue arising from contracts with customer and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are included in the scope of other standards). The guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and must be applied either retrospectively or using the modified retrospective approach. Early adoption is not permitted. Management is evaluating the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial position or results of operations.

- 42 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Safe Harbor Statement for Forward-Looking Statements

This report 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 being materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; the quality and composition of the loan and investment securities portfolio; loan demand; deposit flows; competition; and changes in accounting principles and guidelines. Additional factors that may affect our results are discussed herein and in our Annual Report on Form 10-K for the year ended September 30, 2014 under “Part II, Item 1A. Risk Factors.” These factors should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company assumes no obligation and disclaims any obligation to update any forward-looking statements.

Critical Accounting Policies

During the six-month period ended March 31, 2015, there was no significant change in the Company's critical accounting policies or the application of critical accounting policies as disclosed in the Company's Annual Report on Form 10-K for the year ended September 30, 2014.

Comparison of Financial Condition at March 31, 2015 and September 30, 2014

Cash and Cash Equivalents. Cash and cash equivalents decreased $133,000, from $20.3 million at September 30, 2014 to $20.2 million at March 31, 2015.

Loans. Net loans receivable increased $11.1 million, from $433.9 million at September 30, 2014 to $445.0 million at March 31, 2015, due primarily to increases in commercial real estate, multi-family and commercial business loans of $10.0 million, $1.8 million and $1.8 million, respectively, which more than offset a decrease in residential mortgage loans of $2.6 million. The decrease in residential mortgage loans is primarily due to loan payoffs that have not been replaced by new originations, as the Company’s primary lending focus continues to be the origination of commercial related loans.

- 43 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Trading Account Securities. Trading account securities decreased by $90,000, from $5.3 million at September 30, 2014 to $5.2 million at March 31, 2015. Trading account securities are comprised of investment grade municipal bonds and the portfolio is managed by an investment advisory firm registered with the U.S. Securities and Exchange Commission.

Securities Available for Sale. Securities available for sale decreased $1.3 million, from $184.7 million at September 30, 2014 to $183.4 million at March 31, 2015, due primarily to maturities of $6.1 million and principal repayments of $8.7 million, partially offset by purchases of $11.7 million. The decrease in securities available for sale, primarily in U.S. government agency and sponsored enterprises securities, including mortgage-backed securities and CMOs was due primarily to principal repayments.

Securities Held to Maturity. Investment securities held-to-maturity decreased $407,000, from $5.4 million at September 30, 2014 to $5.0 million at March 31, 2015. There were no purchases of securities held to maturity, and partial calls and principal repayments on mortgage-backed securities totaled $404,000 during the six-month period ended March 31, 2015.

Other Assets. Other assets increased $3.5 million, from $2.5 million at September 30, 2014 to $6.0 million at March 31, 2015, due primarily to the Bank’s $4.2 million commitment to invest in a historic tax credit entity. See Note 5 of the Notes to Consolidated Financial Statements beginning on page 8 of this quarterly report for additional information regarding the investment in the historic tax credit entity.

Deposits. Total deposits increased $3.7 million, from $533.2 million at September 30, 2014 to $536.9 million at March 31, 2015, due primarily to increases in non-interest bearing demand deposits, certificates of deposit and savings accounts of $6.5 million, $5.2 million, $1.7 million, respectively, which more than offset decreases in interest-bearing demand deposit accounts and money market accounts of $6.5 million and $3.1 million, respectively, during the period. The increase in certificates of deposit is due to an increase of $14.3 million in brokered certificates of deposits, which more than offset decreases in various maturity classes of retail certificates of deposits. The decrease in retail certificates of deposits is primarily attributed to maturities that customers are investing in more liquid deposit accounts given the low interest rate environment. Management continues to utilize brokered certificates of deposit in order to take advantage of historically low interest rates, provide short-term liquidity, replace attrition of retail certificates of deposit and provide funding for loan originations. Brokered certificates of deposit totaled $72.1 million at March 31, 2015 and $57.8 million at September 30, 2014.

Borrowings. Borrowings from the FHLB increased $2.1 million, from $79.5 million at September 30, 2014 to $81.6 million at March 31, 2015. Borrowings from the FHLB have increased in order to provide funding for loan originations.

- 44 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Stockholders’ Equity. Stockholders’ equity increased $4.6 million, from $87.1 million at September 30, 2014 to $91.7 million at March 31, 2015. Retained earnings increased $2.2 million due to net income available to common shareholders of $2.6 million, partially offset by common stock cash dividends of $471,000. Accumulated other comprehensive income increased $1.4 million as a result of an increase in net unrealized gains on securities available for sale, which is due to changes in the yield curve and long-term rate forecasts. Book value (common shareholders’ equity) per common share was $34.09 at March 31, 2015 as compared to $32.21 at September 30, 2014. Tangible book value (common shareholders’ equity, less goodwill and core deposit intangibles) per common share was $29.75 at March 31, 2015 as compared to $27.76 at September 30, 2014.

Results of Operations for the Six Months Ended March 31, 2015 and 2014

Overview. The Company reported net income of $2.7 million and net income available to common shareholders of $2.6 million, or $1.18 per diluted share, for the six-month period ended March 31, 2015 compared to net income of $2.6 million and net income available to common shareholders of $2.5 million, or $1.10 per diluted share, for the six-month period ended March 31, 2014. The annualized return on average assets, average equity and average common stockholders’ equity were 0.75%, 6.09% and 7.53%, respectively, for the six-month period ended March 31, 2015.

Net Interest Income. Net interest income increased $136,000, or 1.1%, for the six-month period ended March 31, 2015 compared to the same period in 2014. Average interest-earnings assets increased $32.7 million and average interest-bearing liabilities increased $21.5 million when comparing the two periods. The tax-equivalent interest rate spread was 3.75% for 2015 compared to 3.89% for 2014.

Total interest income increased $209,000, or 1.5%, when comparing the two periods due primarily to an increase in the average balance of interest-earning assets of $32.7 million, from $624.2 million for 2014 to $656.9 million for 2015, which more than offset the change in interest income due to a decrease in the average tax-equivalent yield on interest-earning assets from 4.55% for 2014 to 4.41% for 2015. The average balance of loans, total investment securities and interest-bearing deposits with banks increased $23.4 million, $4.4 million and $3.5 million, respectively, when comparing the two periods.

Total interest expense increased $73,000, or 4.1%, due primarily to an increase in the average balance of interest-bearing liabilities of $21.5 million, from $545.9 million for 2014 to $567.4 million for 2015. The average cost of interest-bearing liabilities was 0.66% for each of the six-month periods ended March 31, 2015 and 2014. The average balance of total interest-bearing deposits increased $16.6 million and the average balance of borrowings increased $4.9 million when comparing the two periods.

- 45 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Average Balance Sheets. The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs for the six-month periods ended March 31, 2015 and 2014. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material. Tax exempt income on loans and investment securities has been calculated on a tax equivalent basis using a federal marginal tax rate of 34%.

	Six Months Ended March 31,
	2015							2014
	Average  Balance		Interest and Dividends		Yield/ Cost			Average  Balance		Interest and Dividends		Yield/ Cost
	(Dollars in thousands)
Assets:
Interest-bearing deposits with banks	$	15,526	$	23		0.30	%	$	11,992	$	17		0.28	%
Loans		448,299		10,764		4.80			424,883		10,524		4.95
Investment securities		135,345		3,015		4.46			134,059		3,038		4.53
Agency mortgage-backed securities		50,718		524		2.07			47,632		494		2.07
FRB and FHLB stock		7,024		146		4.16			5,629		128		4.55
Total interest-earning assets		656,912		14,472		4.41			624,195		14,201		4.55
Non-interest-earning assets		66,346							59,094
Total assets	$	723,258						$	683,289
Liabilities and equity:
NOW accounts	$	113,443	$	113		0.20	%	$	116,248	$	122		0.21	%
Money market deposit accounts		80,426		125		0.31			71,818		120		0.33
Savings accounts		70,692		22		0.06			68,776		21		0.06
Time deposits		200,000		980		0.98			191,076		947		0.99
Total interest-bearing deposits		464,561		1,240		0.53			447,918		1,210		0.54
Borrowings (1)		102,833		643		1.25			97,978		600		1.22
Total interest-bearing liabilities		567,394		1,883		0.66			545,896		1,810		0.66
Non-interest-bearing deposits		57,470							49,076
Other non-interest-bearing liabilities		8,859							4,969
Total liabilities		633,723							599,941
Total equity		89,535							83,348
Total liabilities and equity	$	723,258						$	683,289
Net interest income			$	12,589						$	12,391
Interest rate spread						3.75	%						3.89	%
Net interest margin						3.83	%						3.97	%
Average interest-earning assets to average interest-bearing liabilities						115.78	%						114.34	%

(1) Includes FHLB borrowings, repurchase agreements and other long-term debt.

- 46 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Rate/Volume Analysis. The following table sets forth the effects of changing rates and volumes on our net interest income for the six-month periods ended March 31, 2015 and 2014. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each.

	Six Months Ended March 31, 2015 Compared to Six Months Ended March 31, 2014
	Increase (Decrease) Due to
	Rate			Volume		Net
				(In thousands)
Interest income:
Interest-bearing deposits with banks	$	1		$	5	$	6
Loans		(293	)		533		240
Investment securities		(60	)		37		(23	)
Agency mortgage-backed securities		-			30		30
Other interest-earning assets		(10	)		28		18
Total interest-earning assets		(362	)		633		271
Interest expense:
Deposits		(30	)		60		30
Borrowings (1)		14			29		43
Total interest-bearing liabilities		(16	)		89		73
Net increase (decrease) in net interest income	$	(346	)	$	544	$	198

(1) Includes FHLB borrowings, repurchase agreements and other long-term debt.

Provision for Loan Losses. The provision for loan losses was $419,000 for the six-month period ended March 31, 2015 compared to $604,000 for the same period in 2014. The decrease in the provision for loans losses for 2015 as compared to the prior period was due primarily to a decrease in nonperforming loans when comparing the two periods.

The Company recognized net charge-offs of $155,000 for the six-month period ended March 31, 2015 compared to net charge-offs of $82,000 for the same period in 2014.

The recorded investment in nonperforming loans was $3.9 million at March 31, 2015 compared to $4.3 million at September 30, 2014 and $5.2 million at March 31, 2014. Nonperforming loans at March 31, 2015 include nonaccrual loans of $2.8 million and loans totaling $1.1 million that are over 90 days past due, but still accruing interest. These loans are still accruing interest because the estimated value of the collateral and collection efforts are deemed sufficient to ensure their full recovery. The decrease in nonperforming loans from September 30, 2014 to March 31, 2015 is due primarily to a single commercial real estate loan with an outstanding balance of $696,000 that was reclassified from nonaccrual to accruing status as of December 31, 2014. At March 31, 2015, this loan, with an outstanding balance of $690,000, was current and performing according to the restructured terms.

- 47 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Gross loans receivable increased $19.1 million from $440.6 million at March 31, 2014 to $459.7 million at March 31, 2015, primarily due to increases in permanent commercial real estate and commercial real estate construction loans of $20.6 million and $3.8 million, respectively, which more than offset a decrease in multi-family loans of $5.0 million. The increase in commercial real estate loans when comparing the two periods is due primarily to an increase in loans originated to high net worth individuals that are secured by low loan-to-value, single-tenant commercial properties located outside of the Company’s primary market area and that are leased to investment grade national-brand retailers. At March 31, 2015, $47.2 million, or 28.8% of the commercial real estate loan portfolio and 10.3% of the total loan portfolio, consisted of these loans, compared to $24.8 million, or 17.3% of the commercial real estate loan portfolio and 5.6% of the total loan portfolio, at March 31, 2014.

The allowance for loan losses was $6.5 million at March 31, 2015 compared to $6.3 million at September 30, 2014 and $6.1 million at March 31, 2014. Management has deemed these amounts as adequate on those dates based on its best estimate of probable known and inherent loan losses. The consistent application of management’s allowance for loan losses methodology resulted in an increase in the level of the allowance for loan losses consistent with changes in the loan portfolio and overall economic conditions.

Noninterest Income. Noninterest income decreased $297,000 for the six-month period ended March 31, 2015 as compared to the same period in 2014. The decrease was due primarily to decreases in other income and net gain on trading account securities of $274,000 and $202,000, respectively, which more than offset increases in service charges on deposit accounts, real estate lease income and commission income of $79,000, $40,000 and $28,000, respectively. The decrease in other income is due primarily to a litigation settlement of $277,000 received in the March 2014 quarter as a partial recovery of losses on commercial bond investments recognized by Community First Bank in 2008.

Noninterest Expense. Noninterest expenses increased $65,000 for the six-month period ended March 31, 2015 as compared to the same period in 2014. The increase was due primarily to increases in data processing, advertising and other operating expenses of $125,000, $113,000 and $119,000, respectively, which more than offset decreases in professional fees, net loss on other real estate owned and compensation and benefits expense of $117,000, $87,000 and $71,000, respectively. The increase in data processing expense is due primarily to contract termination costs of $68,000 incurred during the December 2014 quarter. The increase in other operating expenses is due primarily to provisions for insurance claims of $85,000 during the 2015 period for the Captive. The decrease in professional fees expense is due primarily to $201,000 of expense incurred in the 2014 period for consulting services related to a revenue enhancement and operating expense efficiencies project.

Income Tax Expense. The Company recognized income tax expense of $843,000 for the six months ended March 31, 2015, for an effective tax rate of 23.6%, compared to income tax expense of $1.0 million, for an effective tax rate of 29.0%, for the same period in 2014. The decreases in income tax expense and the effective tax rate for the 2015 period were due primarily to the tax effect of the Captive, which was formed in September 2014.

- 48 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Results of Operations for the Three Months Ended March 31, 2015 and 2014

Overview. The Company reported net income and net income available to common shareholders of $1.5 million, or $0.66 per diluted share, for the three-month period ended March 31, 2015 compared to net income and net income available to common shareholders of $1.5 million, or $0.66 per diluted share, for the three-month period ended March 31, 2014. The annualized return on average assets, average equity and average common stockholders’ equity were 0.84%, 6.76% and 8.33%, respectively, for the three-month period ended March 31, 2015.

Net Interest Income. Net interest income decreased $130,000, or 2.1%, for the three-month period ended March 31, 2015 compared to the same period in 2014. Average interest-earnings assets increased $24.4 million and average interest-bearing liabilities increased $10.7 million when comparing the two periods. The tax-equivalent interest rate spread was 3.69% for 2015 as compared to 3.91% for 2014.

Total interest income decreased $66,000, or 0.9%, when comparing the two periods due primarily to a decrease in the average tax-equivalent yield on interest-earning assets from 4.55% for 2014 to 4.36% for 2015, which more than offset the change in interest income due to an increase in the average balance of interest-earning assets of $24.4 million, from $635.6 million for 2014 to $660.0 million for 2015. The average balance of loans and interest-bearing deposits with banks increased $21.7 million and $3.7 million, respectively, which more than offset a decrease in the average balance of total investment securities of $2.9 million, when comparing the two periods.

Total interest expense increased $64,000, or 7.1%, due primarily to an increase in the average balance of interest-bearing liabilities of $10.7 million, from $558.2 million for 2014 to $568.9 million for 2015, and an increase in the average cost of interest-bearing liabilities from 0.64% for 2014 to 0.67% for 2015. The average balance of borrowings increased $10.3 million and the average balance of total interest-bearing deposits increased $369,000 when comparing the two periods.

- 49 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Average Balance Sheets. The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs for the three-month periods ended March 31, 2015 and 2014. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material. Tax exempt income on loans and investment securities has been calculated on a tax equivalent basis using a federal marginal tax rate of 34%.

	Three Months Ended March 31,
	2015							2014
	Average  Balance		Interest and Dividends		Yield/ Cost			Average  Balance		Interest and Dividends		Yield/ Cost
	(Dollars in thousands)
Assets:
Interest-bearing deposits with banks	$	16,185	$	10		0.25	%	$	12,446	$	8		0.26	%
Loans		452,403		5,372		4.75			430,674		5,278		4.90
Investment securities		134,109		1,479		4.41			136,870		1,591		4.65
Agency mortgage-backed securities		49,856		254		2.04			49,968		274		2.19
FRB and FHLB stock		7,462		83		4.45			5,675		78		5.50
Total interest-earning assets		660,015		7,198		4.36			635,633		7,229		4.55
Non-interest-earning assets		67,800							60,632
Total assets	$	727,815						$	696,265
Liabilities and equity:
NOW accounts	$	111,328	$	52		0.19	%	$	115,800	$	58		0.20	%
Money market deposit accounts		80,330		62		0.31			71,751		59		0.33
Savings accounts		71,204		11		0.06			69,478		11		0.06
Time deposits		199,067		473		0.95			204,531		470		0.92
Total interest-bearing deposits		461,929		598		0.52			461,560		598		0.52
Borrowings (1)		106,965		354		1.32			96,689		290		1.20
Total interest-bearing liabilities		568,894		952		0.67			558,249		888		0.64
Non-interest-bearing deposits		58,157							49,438
Other non-interest-bearing liabilities		10,357							4,954
Total liabilities		637,408							612,641
Total equity		90,407							83,624
Total liabilities and equity	$	727,815						$	696,265
Net interest income			$	6,246						$	6,341
Interest rate spread						3.69	%						3.91	%
Net interest margin						3.79	%						3.99	%
Average interest-earning assets to average interest-bearing liabilities						116.02	%						113.86	%

(1) Includes FHLB borrowings, repurchase agreements and other long-term debt.

- 50 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Rate/Volume Analysis. The following table sets forth the effects of changing rates and volumes on our net interest income for the three-month periods ended March 31, 2015 and 2014. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each.

	Three Months Ended March 31, 2015 Compared to Three Months Ended March 31, 2014
	Increase (Decrease) Due to
	Rate			Volume			Net
				(In thousands)
Interest income:
Interest-bearing deposits with banks	$	-		$	2		$	2
Loans		(145	)		239			94
Investment securities		(81	)		(31	)		(112	)
Agency mortgage-backed securities		(19	)		(1	)		(20	)
Other interest-earning assets		(8	)		13			5
Total interest-earning assets		(253	)		222			(31	)
Interest expense:
Deposits		-			-			-
Borrowings (1)		31			33			64
Total interest-bearing liabilities		31			33			64
Net increase (decrease) in net interest income	$	(284	)	$	189		$	(95	)

(1) Includes FHLB borrowings, repurchase agreements and other long-term debt.

Provision for Loan Losses. The provision for loan losses was $212,000 for the three-month period ended March 31, 2015 compared to $303,000 for the same period in 2014. The decrease in the provision for loans losses for 2015 as compared to the prior period was due primarily to a decrease in nonperforming loans when comparing the two periods.

The Company recognized net charge-offs of $148,000 for the three-month period ended March 31, 2015 compared to net charge-offs of $214,000 for the same period in 2014.

- 51 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Noninterest Income. Noninterest income decreased $304,000 for the three-month period ended March 31, 2015 as compared to the same period in 2014. The decrease was due primarily to decreases in other income and net gain on trading account securities of $271,000 and $116,000, respectively, which more than offset increases in commission income, real estate lease income and services charges on deposit accounts of $34,000, $31,000 and $26,000, respectively. The decrease in other income is due primarily to a litigation settlement of $277,000 received in the March 2014 quarter as a partial recovery of losses on commercial bond investments recognized by Community First Bank in 2008.

Noninterest Expense. Noninterest expenses decreased $145,000 for the three-month period ended March 31, 2015 as compared to the same period in 2014. The decrease was due primarily to decreases in professional fees and compensation and benefits expense of $186,000 and $93,000, respectively, which more than offset increases in advertising and data processing expenses of $74,000 and $54,000, respectively. The decrease in professional fees expense is due primarily to $167,000 of expense incurred in the March 2014 quarter for consulting services related to the revenue enhancement and operating expense efficiencies project.

Income Tax Expense. The Company recognized income tax expense of $435,000 for the three months ended March 31, 2015, for an effective tax rate of 22.2%, compared to income tax expense of $624,000, for an effective tax rate of 28.9%, for the same period in 2014. The decreases in income tax expense and the effective tax rate for the 2015 period were due primarily to the tax effect of the Captive, which was formed in September 2014.

- 52 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Liquidity and Capital Resources

Liquidity Management. Liquidity is the ability to meet current and future financial obligations of a short-term nature. The Bank’s primary sources of funds are customer deposits, proceeds from loan repayments, maturing securities and FHLB borrowings. While loan repayments and maturities are a predictable source of funds, deposit flows and mortgage prepayments are greatly influenced by market interest rates, general economic conditions and competition. At March 31, 2015, the Bank had cash and cash equivalents of $20.2 million, trading account securities with a fair value of $5.2 million and securities available-for-sale with a fair value of $183.4 million. If the Bank requires funds beyond its ability to generate them internally, it has additional borrowing capacity with the FHLB, borrowing capacity on a federal funds purchased line of credit facility with another financial institution and additional collateral eligible for repurchase agreements.

The Bank’s primary investing activity is the origination of commercial real estate and one-to-four family mortgage loans and, to a lesser extent, consumer, multi-family, commercial business and residential and commercial real estate construction loans. The Bank also invests in U.S. government agency and sponsored enterprises securities, mortgage backed securities and collateralized mortgage obligations issued by U.S. government agencies and sponsored enterprises, and municipal bonds.

The Bank must maintain an adequate level of liquidity to ensure the availability of sufficient funds to support loan growth and deposit withdrawals, to satisfy financial commitments and to take advantage of investment opportunities. Historically, the Bank has been able to retain a significant amount of its deposits as they mature. If these maturing deposits do not remain with the Bank, we will be required to seek other sources of funds, including other certificates of deposit and borrowings.

The Company is a separate legal entity from the Bank and must provide for its own liquidity to pay its operating expenses and other financial obligations, to pay any dividends and to repurchase any of its outstanding common stock. The Company’s primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to the Company in any calendar year cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. During the six months ended March 31, 2015 the Bank declared and paid dividends to the Company totaling $8.5 million. At March 31, 2015, the Company (unconsolidated basis) had liquid assets of $15.1 million.

Capital Management. The Bank is required to maintain specific amounts of capital pursuant to regulatory requirements. As of March 31, 2015, the Bank was in compliance with all regulatory capital requirements that were effective as of such date, with Tier 1 capital (to average total assets), common equity Tier 1 capital (to risk-weighted assets), Tier 1 capital (to risk-weighted assets) and total capital (to risk-weighted assets) ratios of 8.27%, 12.29%, 12.29% and 13.54%, respectively. The regulatory requirements at that date were 5.0%, 6.5%, 8.0% and 10.0%, respectively, in order to be categorized as “well capitalized” under applicable regulatory guidelines. At March 31, 2015, the Bank was considered “well-capitalized” under applicable regulatory guidelines.

- 53 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 2

MANAGEMENT’S DISCUSSION AND

ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

Off-Balance Sheet Arrangements

In the normal course of operations, the Company engages in a variety of financial transactions that, in accordance with GAAP, are not recorded on the Company's financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are primarily used to manage customers’ requests for funding and take the form of loan commitments and letters of credit. A further presentation of the Company’s off-balance sheet arrangements is presented in the Company’s Annual Report on Form 10-K for the year ended September 30, 2014.

For the six-months ended March 31, 2015, the Company did not engage in any off-balance sheet transactions reasonably likely to have a material effect on the Company's financial condition, results of operations or cash flows.

- 54 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I – ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES

ABOUT MARKET RISK

Qualitative Aspects of Market Risk. Market risk is the risk that the estimated fair value of our assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that our net income will be significantly reduced by interest rate changes.

The Company’s principal financial objective is to achieve long-term profitability while reducing its exposure to fluctuating market interest rates by operating within acceptable limits established for interest rate risk and maintaining adequate levels of funding and liquidity. The Company has sought to reduce the exposure of its earnings to changes in market interest rates by attempting to manage the mismatch between asset and liability maturities and interest rates. In order to reduce the exposure to interest rate fluctuations, the Company has developed strategies to manage its liquidity, shorten its effective maturities of certain interest-earning assets and decrease the interest rate sensitivity of its asset base. Management has sought to decrease the average maturity of its assets by emphasizing the origination of short-term residential mortgage, commercial mortgage and commercial business loans, all of which are retained by the Company for its portfolio. The Company relies on retail deposits as its primary source of funds. Management believes the primary use of retail deposits, complimented with a modest allocation of brokered certificates of deposit and FHLB borrowings, reduce the effects of interest rate fluctuations because they generally represent a more stable source of funds.

Quantitative Aspects of Market Risk. Potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in the general level of interest rates. This interest rate risk arises primarily from our normal business activities of gathering deposits and extending loans. Many factors affect our exposure to changes in interest rates, such as general economic and financial conditions, customer preferences, historical pricing relationships, and re-pricing characteristics of financial instruments. Our earnings can also be affected by the monetary and fiscal policies of the U.S. Government and its agencies, particularly the Federal Reserve Board. Furthermore, the Company does not engage in hedging activities or purchase high-risk derivative instruments and also is not subject to foreign currency exchange rate risk or commodity price risk.

An element in our ongoing process is to measure and monitor interest rate risk using a Net Interest Income at Risk simulation to model the interest rate sensitivity of the balance sheet and to quantify the impact of changing interest rates on the Company. The model quantifies the effects of various possible interest rate scenarios on projected net interest income over a one-year horizon. The model assumes a semi-static balance sheet and measures the impact on net interest income relative to a base case scenario of hypothetical changes in interest rates over twelve months and provides no effect given to any steps that management might take to counter the effect of the interest rate movements. The scenarios include prepayment assumptions, changes in the level of interest rates, the shape of the yield curve, and spreads between market interest rates in order to capture the impact from re-pricing, yield curve, option, and basis risks.

- 55 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I – ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES

ABOUT MARKET RISK

Results of our simulation modeling, which assumes an immediate and sustained parallel shift in market interest rates, project that the Company’s net interest income could change as follows over a one-year horizon, relative to our base case scenario.

	At March 31, 2015						At September, 2014
Immediate Change	One Year Horizon						One Year Horizon
in the Level	Dollar			Percent			Dollar			Percent
of Interest Rates	Change			Change			Change			Change
	(Dollars in thousands)
300bp	$	1,218			2.53	%	$	(1,754	)		(7.04	)%
200bp		870			1.81			(1,132	)		(4.54	)
100bp		362			0.75			(552	)		(2.22	)
Static		-			-			-			-
(100)bp		(1,670	)		(3.47	)		(239	)		(0.96	)

At March 31, 2015, our simulated exposure to an increase in interest rates shows that an immediate and sustained increase in rates of 1.00% will increase our net interest income by $362,000 or 0.75% over a one year horizon compared to a flat interest rate scenario. Furthermore, rate increases of 2.00% and 3.00% would cause net interest income to increase by 1.81% and 2.53%, respectively.

The Company also has longer term interest rate risk exposure, which may not be appropriately measured by Net Interest Income at Risk modeling, and therefore uses an Economic Value of Equity (“EVE”) interest rate sensitivity analysis in order to evaluate the impact of its interest rate risk on earnings and capital. This is measured by computing the changes in net EVE for its cash flows from assets, liabilities and off-balance sheet items in the event of a range of assumed changes in market interest rates. EVE modeling involves discounting present values of all cash flows for on and off balance sheet items under different interest rate scenarios and provides no effect given to any steps that management might take to counter the effect of the interest rate movements. The discounted present value of all cash flows represents the Company’s EVE and is equal to the market value of assets minus the market value of liabilities, with adjustments made for off-balance sheet items. The amount of base case EVE and its sensitivity to shifts in interest rates provide a measure of the longer term re-pricing and option risk in the balance sheet.

- 56 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I – ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES

ABOUT MARKET RISK

Results of our simulation modeling, which assumes an immediate and sustained parallel shift in market interest rates, project that Company’s EVE could change as follows, relative to our base case scenario.

	At March 31, 2015
Immediate Change	Economic Value of Equity								Economic Value of Equity as a
in the Level	Dollar		Dollar			Percent			Percent of Present Value of Assets
of Interest Rates	Amount		Change			Change			EVE Ratio			Change
	(Dollars in thousands)
300bp	$	107,226	$	(4,625	)		(4.13	)%		16.42	%		97	bp
200bp		113,934		2,083			1.86			16.75			130	bp
100bp		116,973		5,122			4.58			16.59			114	bp
Static		111,851		-			-			15.45			-	bp
(100)bp		101,172		(10,679	)		(9.55	)		13.77			(168	)bp

	At September 30, 2014
Immediate Change	Economic Value of Equity								Economic Value of Equity as a
in the Level	Dollar		Dollar			Percent			Percent of Present Value of Assets
of Interest Rates	Amount		Change			Change			EVE Ratio			Change
	(Dollars in thousands)
300bp	$	106,910	$	(14,317	)		(11.81	)%		16.91	%		(28	)bp
200bp		114,585		(6,642	)		(5.48	)		17.44			25	bp
100bp		122,696		1,469			1.21			17.92			73	bp
Static		121,227		-			-			17.19			-	bp
(100)bp		111,206		(10,021	)		(8.27	)		15.52			(167	)bp

The previous table indicates that at March 31, 2015, the Company would expect an increase in its EVE in the event of a sudden and sustained 100 to 200 basis point increase but a decrease in EVE in the event of a sudden and sustained 300 basis point increase and/or a 100 basis point decrease in prevailing interest rates. The expected decrease in the Company’s EVE given a larger increase in rates is primarily attributable to the relatively high percentage of fixed-rate loans in the Company’s loan portfolio, which at March 31, 2015 comprised approximately 46.0% of the loan portfolio.

The models are driven by expected behavior in various interest rate scenarios and many factors besides market interest rates affect the Company’s net interest income and EVE. For this reason, we model many different combinations of interest rates and balance sheet assumptions to understand its overall sensitivity to market interest rate changes. Therefore, as with any method of measuring interest rate risk, certain shortcomings are inherent in the method of analysis presented in the foregoing tables and it’s recognized that the model outputs are not guarantees of actual results. For example, although certain assets and liabilities may have similar maturities or periods to repricing, they may react in different degrees to changes in market interest rates. Also, the interest rates on certain types of assets and liabilities may fluctuate in advance of changes in market interest rates, while interest rates on other types may lag behind changes in market rates. Additionally, certain assets, such as adjustable-rate mortgage loans, have features that restrict changes in interest rates on a short-term basis and over the life of the asset. Further, in the event of a change in interest rates, expected rates of prepayments on loans and early withdrawals from certificates of deposit could deviate significantly from those assumed in calculating the table.

- 57 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART I - ITEM 4

CONTROLS AND PROCEDURES

Controls and Procedures

The Company’s management, including the Company’s principal executive officer and the Company’s principal financial officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended. Based on their evaluation, the principal executive officer and the principal financial officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that information required to be disclosed in reports that the Company files or submits under the Exchange Act with the SEC (1) is recorded, processed, summarized, and reported within the time periods specified in the SEC’s Rules and Forms and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

During the quarter ended March 31, 2015, there were no changes in the Company's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

- 58 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not a party to any legal proceedings. Periodically, there have been various claims and lawsuits involving the Bank, mainly as a plaintiff, such as claims to enforce liens, condemnation proceedings on properties in which the Bank holds security interests, claims involving the making and servicing of real property loans and other issues incident to the Bank’s business. The Bank is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2014 which could materially affect our business, financial condition or future results. There have been no material changes to the risk factors described in our Annual Report on Form 10-K, however, these are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or results of operations.

- 59 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART II

OTHER INFORMATION

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

The following table presents information regarding the Company’s stock repurchase activity during the quarter ended March 31, 2015:

Period	(a) Total number of shares (or units) purchased		(b) Average price  paid per share (or unit)		(c) Total number of shares (or units) purchased as part of publicly announced plans or programs (1)		(d) Maximum number (or appropriate dollar value) of shares (or units) that may yet be purchased under the plans or programs
January 1, 2015 through January 31, 2015		-	$	-		-		83,073
February 1, 2015 through February 28, 2015		-	$	-		-		83,073
March 1, 2015 through March 31, 2015		-	$	-		-		83,073
Total		-	$	-		-		83,073

(1) On November 16, 2012, the Company announced that its Board of Directors authorized a stock repurchase program to acquire up to 230,217 shares, or 10.0% of the Company’s outstanding common stock. Under the program, repurchases are to be conducted through open market purchases or privately negotiated transactions, and are to be made from time to time depending on market conditions and other factors. There is no guarantee as to the exact number of shares to be repurchased by the Company. Repurchased shares will be held in treasury.

Item 3. Defaults upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

- 60 -

FIRST SAVINGS FINANCIAL GROUP, INC.

PART II

OTHER INFORMATION

Item 5. Other Information

None.

Item 6. Exhibits

31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

32.1 Section 1350 Certification of Chief Executive Officer

32.2 Section 1350 Certification of Chief Financial Officer

101 The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2015, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statement of Changes in Stockholders Equity, (v) the Consolidated Statements of Cash Flows and (vi) related notes

- 61 -

SIGNATURES

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 thereunto duly authorized.

	FIRST SAVINGS FINANCIAL GROUP, INC.
	(Registrant)
Dated  May 15, 2015	BY:	/s/ Larry W. Myers
		Larry W. Myers
		President and Chief Executive Officer
Dated  May 15, 2015	BY:	/s/ Anthony A. Schoen
		Anthony A. Schoen
		Chief Financial Officer

- 62 -