Back to top

Image: Bigstock

First Savings Financial (FSFG) Announces Enhanced Capital Plan

Read MoreHide Full Article

First Savings Financial Group, Inc. (FSFG - Free Report) intends to reward shareholders through stock dividend and new share repurchase authorization. This Jeffersonville, IN-based bank has announced a three-for-one stock split, which will be in the form of a stock dividend on its outstanding shares.

Each shareholder of First Savings Financial will receive two additional shares for each share held on record as of Aug 31, 2021. The shares will be distributed after close of business on Sep 15. The company noted that based on number of shares outstanding at present, it will have 7.12 million shares on a split-adjusted basis.

First Savings Financial also authorized a plan to buy back up to 0.4 million or 5% of shares currently outstanding on a split-adjusted basis. The program is effective Sep 16 and doesn’t have any expiration date.

The new repurchase plan will replace the prior program that was announced in November 2012, which authorized 0.23 million shares. Under this plan, nearly 0.12 million shares remained to be repurchased, which will be terminated on Sep 15.

Larry W. Myers, President and CEO of First Savings Financial said, “The new common stock repurchase program and stock split are designed to facilitate the Company’s efficient management of capital and further enhance the long-term shareholder value.”

First Savings Financial pays regular quarterly dividend. In June, the company had announced 100% hike in its dividend to 36 cents per share. Based on last day’s closing price of $80.26 per share, the dividend yield is currently 1.79%.

Supported by its earnings strength, First Savings Financial is expected to continue with efficient capital deployment activities in the future. Through this, it will keep enhancing shareholder value. However, low interest rates and muted loan demand remain major concerns.

Over the past year, shares of First Savings Financial have jumped 73.5% outperforming 59.6% growth recorded by the industry it belongs to.
 

Zacks Investment Research
Image Source: Zacks Investment Research

Currently, First Savings Financial carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Banks Rewarding Shareholders

Over the past months, several banks including Bank OZK (OZK - Free Report) , MVB Financial Corp. (MVBF - Free Report) and Civista Bancshares, Inc. (CIVB - Free Report) have been undertaking efforts to enhance shareholder values through efficient capital deployments. In July, Bank OZK raised the regular quarterly cash dividend 1.8% from the prior payout to 28.5 cents per share.

Likewise, last week, MVB Financial hiked its quarterly dividend 16.7% to 14 cents per share. Further, Civista Bancshares announced a new share-repurchase plan under which it is authorized the buyback of up to an aggregate $13.5 million of its outstanding shares.

Published in