First Saving Bank
Annual Report 2008

Plain-text annual report

L^Z.OZ'i'hZ .ll FIRST SAVINGS 2008 Annual Report F I N A N C I AL G R O U P, J N C. Filings Services MAY 2 7 2009 SNL Financiai, LC 1-800-969-4121 SAVINGS F I N A N C I AL G R O U P, I N C. May 2009 Dear Shareholders, The typical message ofthe annual letter to shareholders focuses on the bank's past year's performance as the President discusses earnings growth, asset quality and earnings per share. Included are the usual excuses for failing to attain certain goals and credit assumed for the goals that are surpassed. As always, there is the comment regarding how these are the most challenging of times and that the bank was able to cope with those challenges in a reasonable manner. This shareholder letter will break tradition and instead focus on the future. Why? The reason is that First Savings Bank has evolved into a completely different entity than it was during most of 2008. First Savings Financial Group, the Bank's holding company, did not exist until late in the 2008 calendar year. Given the capital raised in the conversion of First Savings from a mutual bank to a stock bank in October of 2008, First Savings has become even better positioned to weather the economic storm that has consumed many of our competitors. The additional capital, coupled with our historically prudent lending standards, has permitted First Savings to continue its tradition of profitability since the conversion. It has also positioned the Bank to take advantage of an acquisition opportunity that will further strengthen its presence in the Southern Indiana market. On April 29, 2009, we announced the signing of an agreement to acquire Community First Bank in Corydon, Indiana. When completed, this acquisition will expand our market presence into Harrison, Crawford and Washington Counties so that we will cover five counties in Southem Indiana. Community First is a healthy institution, has a solid history and strong credit culture, and operates in markets that are relatively stable economically. It brings a significant source of diversified deposits and an experienced management team. We anticipate the acquisition will enhance shareholder value by being accretive to earnings in the first year of combined operations after closing. Once the acquisition is completed (which we expect to occur in the third calendar quarter this year). First Savings will double in size and rank as the 29th largest bank headquartered in the state based on asset size. For our shareholders who are primarily interested in dividends and stock buybacks, those options remain. Strategically, we will always strive to maintain our capital levels comfortably above the "well-capitalized" designation to insure protection of our shareholders and depositors. I would like to personally invite First Savings Financial Group shareholders to attend our annual meeting. For those of you who are familiar with the Bank and the Southem Indiana market, this will be an opportunity to show your support for our organization. For the investors whose interest in First Savings has been obtained primarily through our prospectus and subsequent public securities filings and through financial analysts or brokers, this will be your chance to meet the Board of Directors and management team. You may learn first hand the quality of leadership of this organization and our commitment to moving our Bank forward. I look forward to meeting with you. Sincerely, LarwyW. Myers^ President & Chief Executive Officer .i1 FIRST SAVINGS F I N A N C I AL G R O U P, I N C. 501 East Lewis & Clark Parkway Clarksville, IN 47129 

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