SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): May 21, 2013

POAGE BANKSHARES, INC.

(Exact Name of Registrant as Specified in Charter)

Registrant’s telephone number, including area code: (606) 324-7196

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

On May 21, 2013, Home Federal Savings and Loan Association (the “Bank”), the wholly-owned subsidiary of Poage Bankshares, Inc. (the “Company”) settled a claim with its blanket bond insurance provider relating to the creation of fictitious loans by a former employee of the Bank that was discovered by management while in the process of upgrading the Company’s lending controls and procedures in November 2012. The Company previously recorded charges for impairment of certain loans in the aggregate amount of approximately $950,000, as described in the Company’s Annual Report on Form 10-K for the year ended September 30, 2012.

The blanket bond insurance provider has agreed to pay $824,010 in exchange for the assignment by the Company and the Bank of all claims, rights and causes of action which they could have asserted against the employee and any other person or entities which are or may be liable to the Company and the Bank related to the losses suffered, and the general release by the Company and the Bank of the blanket bond insurer and its affiliates. The Company expects the claim payment to be recorded during the quarter ending June 30, 2013 as recovery for the previously recognized losses, resulting in a non-recurring increase in non-interest income for that quarter.

This Form 8-K contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from expected results, such as the discovery of additional fraudulent activities, the risk of fraudulent activities not detected by the Company’s policies and procedures, failure to recover or delays in recovering insurance proceeds if any, changes in the general economic conditions, and legislative and regulatory changes that adversely affect the business of Home Federal Savings and Loan Association and Poage Bankshares, Inc. and changes in the securities markets. Poage Bankshares, Inc. undertakes no obligation to publicly update or revise any forward-looking statements.

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, hereunto duly authorized.