Group 1 - First Savings Financial Group, Inc. (FSFG) has reached a significant support level and is considered a good pick for investors from a technical perspective [1] - FSFG's 50-day simple moving average has recently broken out above its 200-day moving average, indicating a "golden cross" which suggests a potential bullish breakout [1] - The golden cross pattern typically involves a stock's short-term moving average crossing above a longer-term moving average, with the 50-day and 200-day averages being the most common [2] Group 2 - Over the past four weeks, FSFG has gained 9.6%, and currently holds a 1 (Strong Buy) rating on the Zacks Rank, indicating potential for further breakout [3] - There have been positive changes in FSFG's earnings expectations, with one upward revision and no downward changes in the last 60 days, leading to an increase in the Zacks Consensus Estimate [3] - Given the positive technical factors and the movement in earnings estimates, FSFG may present further gains for investors in the near future [5]

Group 1 - The core viewpoint of the report is that First Savings Financial Group, Inc. (NASDAQ: FSFG) is projected to have an EPS of $2.69 for the fiscal year ending in September 2025, maintaining a hold rating since the last report in November 2024 [1] Group 2 - The report does not provide any specific investment recommendations or advice regarding the suitability of investments for particular investors [2] - It emphasizes that past performance is not indicative of future results, highlighting the uncertainty in investment outcomes [2] - The authors of the report are identified as third-party analysts, which may include both professional and individual investors without formal licensing [2]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=Part%20I%20Financial%20Information) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the balance sheets, statements of income, comprehensive income, changes in stockholders' equity, and cash flows, along with detailed notes explaining accounting policies, investment securities, loans, deposits, fair value measurements, stock compensation, regulatory capital, and segment reporting [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from $2,450,368 thousand to $2,376,230 thousand, driven by reductions in cash, debt securities, and loans, while liabilities also decreased due to lower deposits, and stockholders' equity slightly increased Balance Sheet Summary | Metric | March 31, 2025 (in thousands) | September 30, 2024 (in thousands) | Change (in thousands) | | :----------------------------- | :----------------------------- | :-------------------------------- | :-------------------- | | Total Assets | $2,376,230 | $2,450,368 | $(74,138) | | Total Liabilities | $2,197,041 | $2,273,253 | $(76,212) | | Total Stockholders' Equity | $179,189 | $177,115 | $2,074 | | Cash and due from banks | $20,154 | $39,393 | $(19,239) | | Total cash and cash equivalents| $28,683 | $52,142 | $(23,459) | | Loans, net | $1,880,176 | $1,963,852 | $(83,676) | | Total deposits | $1,789,181 | $1,880,881 | $(91,700) | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net income increased for both the three-month and six-month periods ended March 31, 2025, driven by higher net interest income and a credit for credit losses, despite changes in noninterest income and expense Income Statement Summary | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Income | $5,499 | $4,927 | $11,724 | $5,847 | | Net interest income | $15,991 | $14,338 | $31,453 | $28,451 | | Total provision (credit) for credit losses | $(235) | $477 | $(686) | $889 | | Total noninterest income | $3,560 | $3,710 | $9,663 | $6,492 | | Total noninterest expense | $13,698 | $11,778 | $28,641 | $27,817 | | Basic Net income per share | $0.80 | $0.72 | $1.71 | $0.86 | | Diluted Net income per share | $0.79 | $0.72 | $1.68 | $0.85 | | Dividends per share | $0.16 | $0.15 | $0.31 | $0.29 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly decreased for the six-month period ended March 31, 2025, primarily due to substantial unrealized holding losses on available-for-sale securities Comprehensive Income Summary | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :------------------------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Income | $5,499 | $4,927 | $11,724 | $5,847 | | Unrealized holding gains (losses) on securities available for sale, net of tax | $(1,595) | $(3,556) | $(8,185) | $12,425 | | Comprehensive Income | $3,903 | $1,389 | $3,534 | $18,290 | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Stockholders' equity increased from October 1, 2024, to March 31, 2025, primarily due to net income, partially offset by other comprehensive loss and common stock dividends Stockholders' Equity Changes | Metric | October 1, 2024 (in thousands) | March 31, 2025 (in thousands) | | :----------------------------- | :----------------------------- | :---------------------------- | | Total Stockholders' Equity | $177,115 | $179,189 | | Net income (6 months) | N/A | $11,724 | | Other comprehensive loss (6 months) | N/A | $(8,190) | | Common stock dividends (6 months) | N/A | $(2,143) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for the six months ended March 31, 2025, was $32.6 million, a significant change from net cash provided by operating activities in the prior year, leading to an overall decrease in cash and cash equivalents Cash Flow Summary | Metric | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :------------------------------------------ | :--------------------------------------------- | :--------------------------------------------- | | Net Cash Provided by (Used in) Operating Activities | $(32,630) | $90,634 | | Net Cash Provided by (Used In) Investing Activities | $79,073 | $(113,784) |\ | Net Cash Provided by (Used In) Financing Activities | $(69,902) | $55,274 | | Net Increase (Decrease) in Cash and Cash Equivalents | $(23,459) | $32,124 | | Cash and Cash Equivalents at End of Period | $28,683 | $62,969 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of the Company's financial statements, covering its business structure, accounting policies for various financial instruments, and disclosures on investment securities, loans, deposits, fair value measurements, stock compensation, regulatory capital, recent accounting pronouncements, and segment reporting [Note 1. Presentation of Interim Information](index=8&type=section&id=Note%201.%20Presentation%20of%20Interim%20Information) This note outlines the Company's structure as a financial holding company with its primary subsidiary, First Savings Bank, offering various banking services, and details accounting policies for loans and allowance for credit losses - First Savings Financial Group, Inc. is a financial holding company, parent of First Savings Bank, an Indiana-chartered commercial bank[16](index=16&type=chunk) - The Bank's wholly-owned subsidiaries include Q2 Business Capital, LLC (SBA loans) and First Savings Investments, Inc. (securities portfolio)[17](index=17&type=chunk) - The Company ceased its national originate-to-sell mortgage banking operation during the three-month period ended December 31, 2023, but continues local residential mortgage and first-lien home equity lines of credit originations[19](index=19&type=chunk) - The Allowance for Credit Losses (ACL) methodology considers forward-looking information, reverts to long-term historical averages, and adjusts for qualitative factors such as changes in lending policy, economic conditions, and portfolio characteristics[30](index=30&type=chunk)[31](index=31&type=chunk) [Note 2. Investment Securities](index=17&type=section&id=Note%202.%20Investment%20Securities) The Company's investment securities are classified as available for sale (AFS) or held to maturity (HTM), with AFS securities experiencing significant gross unrealized losses, though the Company does not intend to sell them before recovery of amortized cost Investment Securities Data | Metric | March 31, 2025 (in thousands) | September 30, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :-------------------------------- | | Total debt securities available for sale | $243,174 | $248,679 | | Total debt securities held to maturity | $910 | $1,040 | | Gross Unrealized Losses on AFS Securities | $24,729 | $15,247 | | Allowance for Credit Losses on AFS Securities | $14 | $21 | - The Company recorded a **$1 thousand credit for credit losses** on investment securities for the three months ended March 31, 2025, and a **$7 thousand credit** for the six months ended March 31, 2025[61](index=61&type=chunk) - At March 31, 2025, **92% of total debt securities available for sale** were in loss positions, primarily due to changes in current interest rates[71](index=71&type=chunk) - The Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities in an unrealized loss position prior to maturity or recovery of the recorded value[61](index=61&type=chunk)[74](index=74&type=chunk) [Note 3. Loans and Allowance for Credit Losses](index=24&type=section&id=Note%203.%20Loans%20and%20Allowance%20for%20Credit%20Losses) Total loans decreased by $84.3 million, primarily in residential real estate and construction loans, while the allowance for credit losses also decreased, and nonaccrual loans saw a reduction Loans and ACL Summary | Metric | March 31, 2025 (in thousands) | September 30, 2024 (in thousands) | | :----------------------------- | :----------------------------- | :-------------------------------- | | Total loans | $1,899,787 | $1,984,101 | | Allowance for credit losses | $20,484 | $21,294 | | Nonaccrual Loans | $12,720 | $16,942 | | Total Past Due Loans | $15,749 | $11,958 | Credit Loss Activity | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Provision (Credit) for Credit Losses - Loans | $(357) | $713 | $(848) | $1,183 | | Net Recoveries (Charge-Offs) | $156 | $(110) | $38 | $(119) | - No new Financial Difficulty Modifications (FDMs) were made or modified during the three- and six-month periods ended March 31, 2025 and 2024[99](index=99&type=chunk) SBA Loan Servicing Rights | Metric | March 31, 2025 (in thousands) | September 30, 2024 (in thousands) | | :----------------------------- | :----------------------------- | :-------------------------------- | | SBA loan servicing rights balance | $2,686 | $2,687 | | Net servicing income (3 months) | $450 | $458 | | Net servicing income (6 months) | $891 | $922 | [Note 4. Deposits](index=40&type=section&id=Note%204.%20Deposits) Total deposits decreased by $91.7 million from September 30, 2024, to March 31, 2025, primarily due to a significant reduction in brokered certificates of deposit, partially offset by increases in money market and NOW accounts Deposit Breakdown | Deposit Type | March 31, 2025 (in thousands) | September 30, 2024 (in thousands) | Change (in thousands) | | :-------------------------- | :----------------------------- | :-------------------------------- | :-------------------- | | Total deposits | $1,789,181 | $1,880,881 | $(91,700) | | Brokered certificates of deposit | $396,770 | $509,157 | $(112,387) | | Money market accounts | $430,857 | $393,214 | $37,643 | | NOW accounts | $351,121 | $332,388 | $18,733 | [Note 5. Supplemental Disclosure for Net Income Per Share](index=42&type=section&id=Note%205.%20Supplemental%20Disclosure%20for%20Net%20Income%20Per%20Share) Basic and diluted net income per common share increased for both the three-month and six-month periods ended March 31, 2025, compared to the prior year, with calculations including the dilutive effect of outstanding options and restricted stock Net Income Per Share Details | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | Six Months Ended March 31, 2025 | Six Months Ended March 31, 2024 | | :----------------------------------- | :-------------------------------- | :-------------------------------- | :------------------------------ | :------------------------------ | | Basic Net income per common share | $0.80 | $0.72 | $1.71 | $0.86 | | Diluted Net income per common share | $0.79 | $0.72 | $1.68 | $0.85 | | Weighted average common shares outstanding, diluted | 6,960,020 | 6,859,611 | 6,961,829 | 6,849,928 | [Note 6. Fair Value Measurements and Disclosures about Fair Value of Financial Instruments](index=43&type=section&id=Note%206.%20Fair%20Value%20Measurements%20and%20Disclosures%20about%20Fair%20Value%20of%20Financial%20Instruments) This note details the fair value hierarchy (Level 1, 2, 3) for financial assets and liabilities, with securities available for sale primarily Level 1 and Level 2, and collateral-dependent loans classified as Level 3 due to unobservable inputs Fair Value Hierarchy of Assets | Asset Type | March 31, 2025 (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :----------------------------- | :----------------------------- | :--------------------- | :--------------------- | :--------------------- | | Total securities available for sale | $243,174 | $26,248 | $214,684 | $2,242 | | Total collateral dependent loans | $4,392 | $— | $— | $4,392 | - Significant unobservable inputs for collateral dependent loans at March 31, 2025, included a discount from appraised value (**weighted average 16.25%**) and estimated costs to sell (**weighted average 8.94%**)[131](index=131&type=chunk) - At September 30, 2024, SBA loan servicing rights were valued at **$2,687 thousand (Level 3)**, with significant unobservable inputs including a discount rate (**weighted average 11.75%**) and prepayment speed (**weighted average 19.06%**)[123](index=123&type=chunk)[132](index=132&type=chunk) - The Company had no derivative financial instruments as of March 31, 2025, or September 30, 2024, due to the wind-down of its national mortgage banking operation[154](index=154&type=chunk) [Note 7. Employee Stock Ownership Plan](index=52&type=section&id=Note%207.%20Employee%20Stock%20Ownership%20Plan) The Company's ESOP, established in 2008, had its loan repaid in full by December 2015, and all shares have been allocated, with no compensation expense recognized for the periods ended March 31, 2025 and 2024 - The ESOP loan was repaid in full during the quarter ended December 31, 2015, and all shares have been allocated to participants[142](index=142&type=chunk) - No compensation expense was recognized for the three- and six-month periods ended March 31, 2025 and 2024, related to the ESOP[142](index=142&type=chunk) - The ESOP trust held **250,956 shares** of Company common stock at March 31, 2025[142](index=142&type=chunk) [Note 8. Stock Based Compensation Plans](index=52&type=section&id=Note%208.%20Stock%20Based%20Compensation%20Plans) The Company maintains equity incentive plans for stock options and restricted stock, with the 2025 Plan approved for 138,000 shares and 55,895 restricted shares granted in April 2025, and compensation expense recognized for both - The 2025 Equity Incentive Plan was approved in February 2025, with **138,000 shares** available for issuance[143](index=143&type=chunk) - In April 2025, **55,895 restricted shares** were granted to officers and key employees, vesting over a five-year period[143](index=143&type=chunk) Stock-Based Compensation Expense | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Stock option compensation expense | $92 | $78 | $176 | $153 | | Restricted stock compensation expense | $111 | $98 | $216 | $195 | - At March 31, 2025, unrecognized compensation expense for nonvested stock options was **$712 thousand** (expected over **2.86 years**) and for nonvested restricted shares was **$862 thousand** (expected over **2.79 years**)[147](index=147&type=chunk)[151](index=151&type=chunk) [Note 9. Derivative Financial Instruments](index=54&type=section&id=Note%209.%20Derivative%20Financial%20Instruments) Due to the wind-down of the national mortgage banking operation, the Company had no derivative financial instruments as of March 31, 2025, or September 30, 2024 - As of March 31, 2025, and September 30, 2024, the Company had no derivative financial instruments[154](index=154&type=chunk) - This is due to the wind-down of the national mortgage banking operation[154](index=154&type=chunk) [Note 10. Regulatory Capital](index=56&type=section&id=Note%2010.%20Regulatory%20Capital) The Bank met all "well-capitalized" regulatory capital requirements as of March 31, 2025, and September 30, 2024, with capital ratios exceeding minimum thresholds, while the Company also discloses its capital amounts and ratios - The Bank was categorized as **"well capitalized"** under the regulatory framework for prompt corrective action as of March 31, 2025, and September 30, 2024[158](index=158&type=chunk)[193](index=193&type=chunk) Bank Regulatory Capital Ratios | Capital Ratio | Bank Actual (March 31, 2025) | Minimum for Well Capitalized | | :------------------------------------ | :--------------------------- | :--------------------------- | | Total capital (to risk-weighted assets) | 12.36% | 10.00% | | Tier 1 capital (to risk-weighted assets) | 11.29% | 8.00% | | Common equity Tier 1 capital (to risk-weighted assets) | 11.29% | 6.50% | | Tier 1 capital (to average adjusted total assets) | 9.08% | 5.00% | [Note 11. Recent Accounting Pronouncements](index=59&type=section&id=Note%2011.%20Recent%20Accounting%20Pronouncements) This note summarizes several recently issued FASB ASUs, including those on Fair Value Measurements, Investments in Tax Credit Structures, Segment Reporting, Income Tax Disclosures, and Expense Disaggregation Disclosures, with most not expected to have a material impact - ASU No. 2022-03 (Fair Value Measurements) clarifies that contractual sale restrictions on equity securities are not considered part of fair value measurement; adoption had no material impact[162](index=162&type=chunk) - ASU 2023-02 (Investments – Equity Method and Joint Ventures) allows the proportional amortization method for qualifying tax credit structures; early adopted October 1, 2023, with no material impact[163](index=163&type=chunk) - ASU 2023-07 (Segment Reporting) requires disclosure of significant segment expenses and CODM information; not expected to have a material impact[164](index=164&type=chunk) - ASU 2023-09 (Income Taxes) establishes new income tax disclosure requirements; not expected to have a material impact[165](index=165&type=chunk) - ASU 2024-03 (Income Statement – Expense Disaggregation Disclosures) requires specified information about certain costs and expenses; not expected to have a material impact[166](index=166&type=chunk) [Note 12. Segment Reporting](index=61&type=section&id=Note%2012.%20Segment%20Reporting) The Company operates in two primary segments: core banking and SBA lending, with the mortgage banking segment wound down, and both core banking and SBA lending showing increased profitability - The Company's primary segments are core banking and SBA lending; the mortgage banking segment has been wound down[168](index=168&type=chunk) Segment Profitability | Segment | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :---------------- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Core Banking Profit | $5,069 | $4,512 | $11,438 | $5,901 | | SBA Lending Profit | $430 | $415 | $286 | $(54) | [Note 13. Revenue from Contracts with Customers](index=63&type=section&id=Note%2013.%20Revenue%20from%20Contracts%20with%20Customers) This note details the Company's noninterest income streams under ASC 606, primarily within the core banking segment, including service charges, ATM and interchange fees, and commission income, recognized based on transaction execution or service provision Revenue from Contracts with Customers Breakdown | Revenue Type | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Revenue from contracts with customers | $1,458 | $1,223 | $2,926 | $2,392 | | Service charges on deposit accounts | $541 | $387 | $1,108 | $860 | | ATM and interchange fees | $632 | $585 | $1,297 | $1,034 | | Commission income | $255 | $220 | $465 | $442 | - Revenue recognition for service charges on deposit accounts, ATM and interchange fees, commission income, and other income is based on transaction execution or satisfaction of performance obligations over time[177](index=177&type=chunk)[178](index=178&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Note 14. Mortgage Banking Income](index=64&type=section&id=Note%2014.%20Mortgage%20Banking%20Income) Mortgage banking income increased for both the three-month and six-month periods ended March 31, 2025, primarily due to improved origination and sale of mortgage loans and provisions for loan repurchases, despite the wind-down of the national mortgage banking operation Mortgage Banking Income Summary | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Total mortgage banking income | $104 | $53 | $182 | $142 | | Origination and sale of mortgage loans | $44 | $(991) | $59 | $(1,202) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=65&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial performance and condition, including a safe harbor statement, critical accounting policies, a comparison of financial condition, and a detailed analysis of results of operations, liquidity, capital resources, and off-balance sheet arrangements [Safe Harbor Statement for Forward-Looking Statements](index=65&type=section&id=Safe%20Harbor%20Statement%20for%20Forward-Looking%20Statements) This section provides a safe harbor statement, indicating that the report contains forward-looking statements based on current expectations, which are subject to various risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are not guarantees of future performance and are subject to numerous risks and uncertainties[184](index=184&type=chunk) - Factors that may cause differences include general economic conditions, changes in market interest rates, legislative and regulatory changes, loan and investment portfolio quality, loan demand, deposit flows, competition, and changes in accounting principles[184](index=184&type=chunk) [Critical Accounting Policies; Critical Accounting Estimates](index=65&type=section&id=Critical%20Accounting%20Policies%3B%20Critical%20Accounting%20Estimates) No significant changes in the Company's critical accounting policies or their application were reported during the six-month period ended March 31, 2025, compared to the prior fiscal year - There was no significant change in the Company's critical accounting policies or the application of critical accounting policies during the six-month period ended March 31, 2025[185](index=185&type=chunk) [Comparison of Financial Condition at March 31, 2025 and September 30, 2024](index=65&type=section&id=Comparison%20of%20Financial%20Condition%20at%20March%2031%2C%202025%20and%20September%2030%2C%202024) The Company's financial condition at March 31, 2025, showed a decrease in total assets, primarily due to reduced cash and cash equivalents, net loans, and available-for-sale securities, while total deposits also decreased, and FHLB borrowings increased - Cash and cash equivalents decreased by **$23.5 million** to **$28.7 million**, primarily used to pay down brokered deposits[186](index=186&type=chunk) - Net loans receivable decreased by **$83.7 million** to **$1.88 billion**, mainly due to an **$87.2 million bulk sale** of residential real estate home equity line of credit loans[187](index=187&type=chunk) - Securities available for sale decreased by **$5.5 million** to **$243.2 million**, driven by net decreases in fair value of **$10.4 million**, partially offset by purchases[189](index=189&type=chunk) - Total deposits decreased by **$91.7 million** to **$1.79 billion**, primarily due to a **$112.4 million decrease** in brokered deposits, partially offset by increases in money market and interest-bearing demand deposit accounts[190](index=190&type=chunk) - FHLB borrowings increased by **$23.7 million** to **$325.3 million**, utilized in place of brokered deposits[192](index=192&type=chunk) - Stockholders' equity increased by **$2.1 million** to **$179.2 million**, primarily due to a **$9.6 million increase** in retained net income, partially offset by an **$8.2 million increase** in accumulated other comprehensive loss[193](index=193&type=chunk) [Results of Operations for the Three Months Ended March 31, 2025 and 2024](index=67&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) Net income increased by $0.6 million to $5.5 million for the three months ended March 31, 2025, driven by an 11.6% increase in net interest income and a credit for credit losses, despite changes in noninterest income and expense, with the net interest margin improving to 2.93% Key Financial Metrics | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | Change (in thousands) | | :-------------------------- | :----------------------------------------------- | :----------------------------------------------- | :-------------------- | | Net Income | $5,499 | $4,927 | $572 | | Net Interest Income | $15,991 | $14,338 | $1,653 | | Tax-Equivalent Net Interest Margin | 2.93% | 2.66% | 0.27% pts | | Total Interest Income | $30,823 | $30,016 | $807 | | Total Interest Expense | $14,832 | $15,678 | $(846) | | Total provision (credit) for credit losses | $(235) | $477 | $(712) | | Noninterest Income | $3,560 | $3,710 | $(150) | | Noninterest Expense | $13,698 | $11,778 | $1,920 | | Income Tax Expense | $589 | $866 | $(277) | | Effective Tax Rate | 9.7% | 14.9% | (5.2)% pts | - The credit for credit losses for loans during the 2025 period was primarily due to a decrease in qualitative reserve[204](index=204&type=chunk) - The decrease in other noninterest income was primarily due to a **$492 thousand gain** on the sale of mortgage servicing rights in 2024 with no corresponding amount in 2025[206](index=206&type=chunk) - The increase in noninterest expense was primarily due to increases in compensation and benefits (**$940 thousand**) and other operating expenses (**$948 thousand**)[208](index=208&type=chunk) [Results of Operations for the Six Months Ended March 31, 2025 and 2024](index=70&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20March%2031%2C%202025%20and%202024) Net income significantly increased by $5.9 million to $11.7 million for the six months ended March 31, 2025, driven by a 10.6% increase in net interest income, a credit for credit losses, and a substantial increase in noninterest income, despite increased noninterest expense and income tax expense Key Financial Metrics | Metric | Six Months Ended March 31, 2025 (in thousands) | Six Months Ended March 31, 2024 (in thousands) | Change (in thousands) | | :-------------------------- | :--------------------------------------------- | :--------------------------------------------- | :-------------------- | | Net Income | $11,724 | $5,847 | $5,877 | | Net Interest Income | $31,453 | $28,451 | $3,002 | | Tax-Equivalent Net Interest Margin | 2.84% | 2.67% | 0.17% pts | | Total Interest Income | $63,272 | $58,671 | $4,601 | | Total Interest Expense | $31,819 | $30,220 | $1,599 | | Total provision (credit) for credit losses | $(686) | $889 | $(1,575) | | Noninterest Income | $9,663 | $6,492 | $3,171 | | Noninterest Expense | $28,641 | $27,817 | $824 | | Income Tax Expense | $1,437 | $390 | $1,047 | | Effective Tax Rate | 10.9% | 6.3% | 4.6% pts | - Nonperforming loans decreased by **$4.2 million** from **$16.9 million** at September 30, 2024, to **$12.7 million** at March 31, 2025[220](index=220&type=chunk) - The increase in noninterest income was primarily due to a **$2.5 million net gain** on the bulk sale of home equity lines of credit and **$403 thousand in net gains** on the sale of equity securities, with no corresponding gains in 2024[222](index=222&type=chunk) - The increase in noninterest expense was primarily due to increases in other operating expenses (**$962 thousand**) and compensation and benefits (**$453 thousand**), partially offset by decreases in professional fees and occupancy and equipment due to the cessation of national mortgage banking operations[223](index=223&type=chunk)[226](index=226&type=chunk) [Liquidity and Capital Resources](index=75&type=section&id=Liquidity%20and%20Capital%20Resources) The Bank maintains liquidity through customer deposits, loan repayments, maturing securities, and FHLB borrowings, with significant additional borrowing capacity, and remains "well-capitalized" with capital ratios exceeding regulatory minimums - At March 31, 2025, the Bank had **$28.7 million** in cash and cash equivalents and **$133.6 million** in unpledged securities available-for-sale[228](index=228&type=chunk) - The Bank had additional borrowing capacity of **$800.0 million** from the FHLB (with **$325.3 million outstanding**), federal funds lines of credit, and **$52.7 million** from the Federal Reserve Discount Window[228](index=228&type=chunk) - Uninsured deposits were estimated at **$568.9 million (31.8% of total deposits)** or **$270.3 million (15.1% excluding Indiana public funds)** as of March 31, 2025[230](index=230&type=chunk) - The Company (unconsolidated basis) had liquid assets of **$20.8 million** at March 31, 2025, with its primary source of income being dividends from the Bank[231](index=231&type=chunk) - The Bank was in compliance with all regulatory capital requirements and considered **"well-capitalized"** as of March 31, 2025[233](index=233&type=chunk) [Off-Balance Sheet Arrangements](index=76&type=section&id=Off-Balance%20Sheet%20Arrangements) The Company engages in off-balance sheet transactions, primarily loan commitments and letters of credit, which involve credit, interest rate, and liquidity risk, with no material off-balance sheet transactions occurring during the six-month period ended March 31, 2025 - Off-balance sheet arrangements primarily take the form of loan commitments and letters of credit[234](index=234&type=chunk) - No off-balance sheet transactions were reasonably likely to have a material effect on the Company's consolidated financial condition, results of operations, or cash flows for the six-month period ended March 31, 2025[235](index=235&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=77&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company manages market risk, primarily interest rate risk, to achieve long-term profitability and maintain adequate funding, with simulation modeling indicating that an immediate 1.00% increase in interest rates would decrease net interest income by 2.57% over one year, while a 1.00% decrease would increase it by 3.25% - The Company's principal financial objective is to achieve long-term profitability while reducing exposure to fluctuating market interest rates[239](index=239&type=chunk) - Strategies include managing the mismatch between asset and liability maturities, emphasizing short-term residential and commercial loans, and relying on retail deposits as a stable funding source[239](index=239&type=chunk) Net Interest Income Sensitivity | Immediate Change in Interest Rates | One Year Horizon Dollar Change (in thousands) | One Year Horizon Percent Change | | :--------------------------------- | :------------------------------------------ | :------------------------------ | | +300bp | $(4,886) | (6.63)% | | +200bp | $(3,455) | (4.69)% | | +100bp | $(1,898) | (2.57)% | | -100bp | $2,400 | 3.25% | | -200bp | $4,820 | 6.54% | - All estimated changes in net interest income from interest rate simulations are within policy guidelines approved by the Company's Board of Directors[244](index=244&type=chunk) [Item 4. Controls and Procedures](index=79&type=section&id=Item%204.%20Controls%20and%20Procedures) The Company's management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting during the three months ended March 31, 2025 - The Company's disclosure controls and procedures were effective as of March 31, 2025[247](index=247&type=chunk) - No changes in internal control over financial reporting occurred during the three months ended March 31, 2025, that materially affected or are reasonably likely to materially affect internal control[248](index=248&type=chunk) [PART II - OTHER INFORMATION](index=80&type=section&id=Part%20II%20Other%20Information) [Item 1. Legal Proceedings](index=80&type=section&id=Item%201.%20Legal%20Proceedings) As of March 31, 2025, the Company is not a party to any legal proceedings that are believed to require disclosure, warrant a loss contingency accrual, or would have a material adverse effect on its financial condition, results of operations, or cash flow - The Company is not a party to any legal proceedings that require disclosure, warrant a loss contingency accrual, or would have a material adverse effect on its financial condition, results of operations, or cash flow as of March 31, 2025[251](index=251&type=chunk) [Item 1A. Risk Factors](index=80&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors described in the Annual Report on Form 10-K for the year ended September 30, 2024, were identified, though additional unknown or immaterial risks may still adversely affect the business - There have been no material changes to the risk factors described in the Annual Report on Form 10-K for the year ended September 30, 2024[252](index=252&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, And Issuer Purchases of Equity Securities](index=81&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20And%20Issuer%20Purchases%20of%20Equity%20Securities) The Company repurchased 1,437 shares of common stock at an average price of $25.09 per share during March 2025 under its publicly announced stock repurchase program, with 10,086 shares remaining available Common Stock Repurchases | Period | Total shares purchased | Average price paid per share | | :----------------------------- | :--------------------- | :--------------------------- | | March 1, 2025 through March 31, 2025 | 1,437 | $25.09 | - As of March 31, 2025, **10,086 shares** may yet be purchased under the publicly announced stock repurchase program[255](index=255&type=chunk) - The stock repurchase program, authorized on August 16, 2021, allows for the acquisition of up to **356,220 shares**[255](index=255&type=chunk) [Item 3. Defaults Upon Senior Securities](index=81&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company - Not applicable[256](index=256&type=chunk) [Item 4. Mine Safety Disclosures](index=81&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company - Not applicable[257](index=257&type=chunk) [Item 5. Other Information](index=81&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the three months ended March 31, 2025 - None of the Company's directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangement during the three months ended March 31, 2025[258](index=258&type=chunk) [Item 6. Exhibits](index=82&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including certifications from the CEO and CFO, XBRL financial statements, and the interactive data file - Exhibits include Rule 13a-14(a)/15d-14(a) Certifications of the Chief Executive Officer and Chief Financial Officer[261](index=261&type=chunk) - Section 1350 Certifications of the Chief Executive Officer and Chief Financial Officer are included[261](index=261&type=chunk) - The financial statements and related notes are formatted in XBRL (Extensible Business Reporting Language)[261](index=261&type=chunk) [SIGNATURES](index=83&type=section&id=Signatures) [Signatures](index=83&type=section&id=Signatures) The report is signed by Larry W. Myers, President and Chief Executive Officer, and Anthony A. Schoen, Chief Financial Officer, on May 7, 2025, certifying compliance with Securities Exchange Act requirements - The report was signed by Larry W. Myers, President and Chief Executive Officer, and Anthony A. Schoen, Chief Financial Officer[263](index=263&type=chunk) - The signing date for the report was May 7, 2025[263](index=263&type=chunk)

Core Viewpoint - First Savings Financial (FSFG) shows a significantly improving earnings outlook, making it an attractive option for investors as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - Analysts' optimism regarding FSFG's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The current-quarter earnings estimate is $0.72 per share, reflecting a +38.46% change from the previous year [6]. - Over the last 30 days, the Zacks Consensus Estimate for FSFG has increased by 12.5%, with one estimate moving higher and no negative revisions [6]. - For the full year, the earnings estimate stands at $2.90 per share, indicating a +70.59% change from the year-ago figure [7]. - There has been a positive trend in estimate revisions for the current year, with one estimate moving up and no negative revisions [7]. Zacks Rank and Performance - FSFG currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward [8]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3]. - Stocks with Zacks Rank 1 and 2 significantly outperform the S&P 500, suggesting a favorable investment environment for FSFG [8]. Stock Performance - The stock has gained 11.4% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [9].

Core Viewpoint - The Company has successfully redeemed $20.0 million of high-cost subordinated notes, which is expected to enhance its net interest margin and create opportunities for future share repurchases [1][2]. Financial Summary - The subordinated notes were originally issued on September 20, 2018, with a fixed-to-floating rate of 5.95%, and prior to redemption, they yielded 7.66% [1]. - The Bank funded the redemption through a $19.0 million dividend, supported by short-term wholesale borrowings at a rate of 4.48% [1]. - As of March 31, 2025, the Bank maintained leverage and total risk-based capital ratios above 9.0% and 12.0%, respectively, which continued post-redemption as of April 30, 2025 [1]. Strategic Initiatives - The redemption of the subordinated notes is part of the Company's strategic initiatives aimed at reducing high-cost debt and potentially repurchasing common shares in the future [2]. - The Company anticipates building excess capital, which would support the share repurchase strategy if deemed accretive to earnings per share [2]. Company Overview - The Bank operates as a community bank in Jeffersonville, Indiana, with fifteen depository branches in Southern Indiana and two national lending programs [2]. - The Bank is recognized for its lending programs and aims to be the best community bank, contributing to its success [2].

Executive Summary & Company Overview [Second Fiscal Quarter 2025 Highlights](index=1&type=section&id=Second%20Fiscal%20Quarter%202025%20Highlights) First Savings Financial Group reported Q2 2025 GAAP net income of **$5.5 million** ($0.79 diluted EPS) and non-GAAP net income of **$5.3 million** ($0.76 diluted EPS), showing strong year-over-year growth GAAP Financial Highlights | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | YoY Change (in millions) | YoY Change (%) | | :-------------- | :------ | :------ | :--------- | :------------- | | Net Income | $5.5 | $4.9 | +$0.6 | +12.2% | | Diluted EPS | $0.79 | $0.72 | +$0.07 | +9.7% | | Non-GAAP Net Income | $5.3 | $3.6 | +$1.7 | +47.2% | | Non-GAAP Diluted EPS | $0.76 | $0.52 | +$0.24 | +46.2% | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Larry W. Myers noted Q2 improvements in net interest margin, SBA Lending profitability, and asset quality, anticipating continued expansion and stable asset quality - Net interest margin increased **eighteen and twenty-one basis points** for the three and six months ended, respectively[2](index=2&type=chunk) - SBA Lending segment posted its **first profitable quarter since March 2024**, with solid loan originations and sales[2](index=2&type=chunk) - Asset quality improved, with nonperforming loans decreasing **$3.8 million** from the prior quarter and the ratio of nonperforming loans to total gross loans improving to **0.67%** (a decrease of **twenty basis points**)[2](index=2&type=chunk) - Optimistic outlook for fiscal 2025, anticipating further net interest margin expansion, continued SBA Lending profitability, additional HELOC sales, and stable asset quality[2](index=2&type=chunk) [Company Profile](index=4&type=section&id=Company%20Profile) First Savings Bank is an Indiana-based community bank with fifteen branches, operating national commercial real estate and SBA lending programs, and trading on NASDAQ as "FSFG" - Headquartered in Jeffersonville, Indiana, with **fifteen depository branches** in Southern Indiana[17](index=17&type=chunk) - Operates **two national lending programs**: single-tenant net lease commercial real estate and SBA lending, with offices predominantly in the Midwest[17](index=17&type=chunk) - Common shares trade on The NASDAQ Stock Market under the symbol **"FSFG."**[17](index=17&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements, not guarantees of future performance, subject to various economic and regulatory risks, with no obligation for the Company to update them - Forward-looking statements are based on current expectations and are **not guarantees of future performance**[17](index=17&type=chunk)[18](index=18&type=chunk) - Risks and uncertainties include changes in general economic conditions, market interest rates, monetary and fiscal policies, and legislative/regulatory changes[18](index=18&type=chunk) - The Company assumes **no obligation to update** forward-looking statements[19](index=19&type=chunk) Financial Performance Analysis [Results of Operations - Three Months Ended March 31, 2025 and 2024](index=1&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20March%2031%2C%202025%20and%202024) First Savings Financial Group reported an **11.6% increase in net interest income** for Q2 2025, a reversal of credit loss provisions, decreased noninterest income, and increased noninterest expense [Net Interest Income](index=1&type=section&id=Net%20Interest%20Income%20%28Three%20Months%29) Net Interest Income (Three Months Ended March 31) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change (in thousands) | YoY Change (%) | | :---------------------- | :--------------------- | :--------------------- | :------------------------ | :------------- | | Net Interest Income | $16,000 | $14,300 | +$1,700 | +11.6% | | Tax Equivalent Net Interest Margin | 2.93% | 2.66% | +0.27% | | - The increase in net interest income was due to an increase of **$807,000** in interest income and a decrease of **$846,000** in interest expense[3](index=3&type=chunk) [Provision for Credit Losses](index=1&type=section&id=Provision%20for%20Credit%20Losses%20%28Three%20Months%29) Provision for Credit Losses (Three Months Ended March 31, in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :-------------------- | :------ | :------ | :--------- | | Provision (credit) for credit losses - loans | ($357) | $713 | ($1,070) | | Provision (credit) for unfunded lending commitments | $123 | ($259) | +$382 | | Provision (credit) for credit losses - securities | ($1) | $23 | ($24) | | Total provision (credit) for credit losses | ($235) | $477 | ($712) | - The reversal of provisions in 2025 was primarily due to a decrease in qualitative reserves and **$156,000** in net recoveries, including **$215,000** from unguaranteed SBA loans[4](index=4&type=chunk) - Nonperforming loans decreased by **$4.2 million** from September 30, 2024, to **$12.7 million** at March 31, 2025, mainly due to a **$4.9 million** decrease in SBA-guaranteed loan balances[4](index=4&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income%20%28Three%20Months%29) Noninterest Income (Three Months Ended March 31, in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY Change (%) | | :-------------------- | :------ | :------ | :--------- | :------------- | | Total Noninterest Income | $3,560 | $3,710 | ($150) | -4.0% | - The decrease in other income in 2025 was primarily due to a **$492,000** gain on the sale of mortgage servicing rights during the 2024 period with no corresponding amount for 2025[5](index=5&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense%20%28Three%20Months%29) Noninterest Expense (Three Months Ended March 31, in thousands) | Metric | Q2 2025 | Q2 2024 | YoY Change | YoY Change (%) | | :-------------------- | :------ | :------ | :--------- | :------------- | | Total Noninterest Expense | $13,698 | $11,778 | +$1,920 | +16.3% | - Increase in compensation and benefits primarily due to higher bonus and incentive accruals in 2025[6](index=6&type=chunk) - Increase in other operating expenses primarily due to a **$656,000** reversal of accrued loss contingencies for SBA-guaranteed loans in 2024 compared to a **$41,000** reversal in 2025, and a **$247,000** adjustment to the MSR valuation allowance in 2024 with no 2025 equivalent[6](index=6&type=chunk) [Income Tax Expense](index=2&type=section&id=Income%20Tax%20Expense%20%28Three%20Months%29) Income Tax Expense (Three Months Ended March 31, in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change (in thousands) | YoY Change (%) | | :------------- | :--------------------- | :--------------------- | :------------------------ | :------------- | | Income Tax Expense | $589 | $866 | ($277) | -32.0% | | Effective Tax Rate | 9.7% | 14.9% | -5.2% | | - The decrease in income tax expense is primarily due to greater utilization of investment tax credits in 2025, related to solar projects[7](index=7&type=chunk) [Results of Operations - Six Months Ended March 31, 2025 and 2024](index=2&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20March%2031%2C%202025%20and%202024) First Savings Financial Group reported substantial increases in GAAP and non-GAAP net income and diluted EPS for the six months ended March 31, 2025, driven by **10.6% net interest income growth**, credit loss provision reversal, and significant noninterest income gains [Net Income Overview](index=2&type=section&id=Net%20Income%20Overview%20%28Six%20Months%29) GAAP Financial Highlights (Six Months Ended March 31) | Metric | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | YoY Change (in millions) | YoY Change (%) | | :-------------- | :------------ | :------------ | :--------- | :------------- | | Net Income | $11.7 | $5.8 | +$5.9 | +101.7% | | Diluted EPS | $1.68 | $0.85 | +$0.83 | +97.6% | | Non-GAAP Net Income | $9.4 | $4.5 | +$4.9 | +108.9% | | Non-GAAP Diluted EPS | $1.35 | $0.66 | +$0.69 | +104.5% | Core Banking Segment GAAP Financial Highlights (Six Months Ended March 31) | Metric | 6 Months 2025 (in millions) | 6 Months 2024 (in millions) | YoY Change (in millions) | YoY Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | :------------- | | Net Income | $11.4 | $8.6 | +$2.8 | +32.6% | | Diluted EPS | $1.64 | $1.25 | +$0.39 | +31.2% | [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income%20%28Six%20Months%29) Net Interest Income (Six Months Ended March 31, in thousands) | Metric | 6 Months 2025 | 6 Months 2024 | YoY Change | YoY Change (%) | | :---------------------- | :------------ | :------------ | :--------- | :------------- | | Net Interest Income | $31,500 | $28,500 | +$3,000 | +10.6% | | Tax Equivalent Net Interest Margin | 2.84% | 2.68% | +0.16% | | - The increase in net interest income was due to a **$4.6 million** increase in interest income, partially offset by a **$1.6 million** increase in interest expense[9](index=9&type=chunk) [Provision for Credit Losses](index=2&type=section&id=Provision%20for%20Credit%20Losses%20%28Six%20Months%29) Provision for Credit Losses (Six Months Ended March 31, in thousands) | Metric | 6 Months 2025 | 6 Months 2024 | YoY Change | | :-------------------- | :------------ | :------------ | :--------- | | Provision (credit) for credit losses - loans | ($848) | $1,200 | ($2,048) | | Provision (credit) for unfunded lending commitments | $169 | ($317) | +$486 | | Provision (credit) for credit losses - securities | ($7) | $23 | ($30) | | Total provision (credit) for credit losses | ($686) | $889 | ($1,575) | - The reversal of provisions in 2025 was primarily due to the bulk sale of approximately **$87.2 million** of HELOCs and a decrease in qualitative reserves[10](index=10&type=chunk) - The Company recognized net recoveries totaling **$38,000** for the six months ended March 31, 2025, compared to net charge-offs of **$119,000** in 2024[10](index=10&type=chunk) [Noninterest Income](index=3&type=section&id=Noninterest%20Income%20%28Six%20Months%29) Noninterest Income (Six Months Ended March 31, in thousands) | Metric | 6 Months 2025 | 6 Months 2024 | YoY Change | YoY Change (%) | | :-------------------- | :------------ | :------------ | :--------- | :------------- | | Total Noninterest Income | $9,663 | $6,492 | +$3,171 | +48.8% | - The decrease in other income was due to a **$495,000** gain recognized on the sale of mortgage servicing rights during 2024 with no corresponding amount for 2025[11](index=11&type=chunk) [Noninterest Expense](index=3&type=section&id=Noninterest%20Expense%20%28Six%20Months%29) Noninterest Expense (Six Months Ended March 31, in thousands) | Metric | 6 Months 2025 | 6 Months 2024 | YoY Change | YoY Change (%) | | :-------------------- | :------------ | :------------ | :--------- | :------------- | | Total Noninterest Expense | $28,641 | $27,817 | +$824 | +3.0% | - Increase in other operating expenses primarily due to a **$721,000** reversal of accrued loss contingencies for SBA-guaranteed loans in 2024 (compared to **$148,000** in 2025) and a **$400,000** accrued contingent liability for employee benefits in 2025[12](index=12&type=chunk) - Decreases in professional fees and occupancy/equipment are primarily due to the cessation of national mortgage banking operations in Q4 2023[12](index=12&type=chunk) [Income Tax Expense](index=3&type=section&id=Income%20Tax%20Expense%20%28Six%20Months%29) Income Tax Expense (Six Months Ended March 31, in thousands) | Metric | 6 Months 2025 (in thousands) | 6 Months 2024 (in thousands) | YoY Change (in thousands) | YoY Change (%) | | :------------- | :--------------------------- | :--------------------------- | :------------------------ | :------------- | | Income Tax Expense | $1,400 | $390 | +$1,010 | +259.0% | | Effective Tax Rate | 10.9% | 6.3% | +4.6% | | - The increase in income tax expense is primarily due to higher taxable income in 2025, including the net gain on sale of loans[13](index=13&type=chunk) - The effective tax rate remains below the statutory rate due to investment tax credits related to solar projects[13](index=13&type=chunk) Financial Condition [Balance Sheet Comparison (March 31, 2025 and September 30, 2024)](index=3&type=section&id=Balance%20Sheet%20Comparison%20%28March%2031%2C%202025%20and%20September%2030%2C%202024%29) First Savings Financial Group's total assets and liabilities decreased from September 2024 to March 2025, driven by a HELOC bulk sale and reduced brokered deposits, while stockholders' equity increased [Assets](index=3&type=section&id=Assets) Assets (in thousands) | Metric | March 31, 2025 | September 30, 2024 | Change (Decrease) | | :-------------------- | :------------- | :----------------- | :---------------- | | Total Assets | $2,376,230 | $2,450,368 | ($74,138) | - The decrease in net loans held for investment was primarily due to the **$87.2 million** bulk sale of home equity lines of credit[14](index=14&type=chunk) [Liabilities and Deposits](index=3&type=section&id=Liabilities%20and%20Deposits) Liabilities and Deposits (in thousands) | Metric | March 31, 2025 | September 30, 2024 | Change (Decrease) | | :-------------------- | :------------- | :----------------- | :---------------- | | Total Liabilities | $2,197,041 | $2,273,253 | ($76,212) | - The decrease in total deposits was due to a decrease in brokered deposits, primarily from proceeds of the HELOC bulk sale, partially offset by an increase in customer deposits[15](index=15&type=chunk) - Deposits exceeding the FDIC insurance limit were **31.8%** of total deposits (**15.1%** excluding public funds insured by Indiana Public Deposit Insurance Fund) as of March 31, 2025[15](index=15&type=chunk) [Stockholders' Equity](index=3&type=section&id=Stockholders%27%20Equity) Stockholders' Equity (in thousands) | Metric | March 31, 2025 | September 30, 2024 | Change (Increase) | | :-------------------- | :------------- | :----------------- | :---------------- | | Total Stockholders' Equity | $179,189 | $177,115 | +$2,074 | - The increase in accumulated other comprehensive loss was primarily due to increasing long-term market interest rates, which decreased the fair value of securities available for sale[16](index=16&type=chunk) - The Bank was considered **"well-capitalized"** under regulatory guidelines at both March 31, 2025, and September 30, 2024[16](index=16&type=chunk) Supplemental Financial Information [Consolidated Financial Highlights](index=5&type=section&id=Consolidated%20Financial%20Highlights) Consolidated financial highlights present operating data, financial condition, and key performance and asset quality ratios, showing improvements in net income, diluted EPS, net interest margin, and asset quality Operating Data (in thousands, except per share data) | Metric | 3 Months Ended Mar 31, 2025 | 3 Months Ended Mar 31, 2024 | 6 Months Ended Mar 31, 2025 | 6 Months Ended Mar 31, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total interest income | $30,823 | $30,016 | $63,272 | $58,671 | | Total interest expense | $14,832 | $15,678 | $31,819 | $30,220 | | Net interest income | $15,991 | $14,338 | $31,453 | $28,451 | | Total provision (credit) for credit losses | ($235) | $477 | ($686) | $889 | | Total noninterest income | $3,560 | $3,710 | $9,663 | $6,492 | | Total noninterest expense | $13,698 | $11,778 | $28,641 | $27,817 | | Net income | $5,499 | $4,927 | $11,724 | $5,847 | | Net income per share, diluted | $0.79 | $0.72 | $1.68 | $0.85 | Performance Ratios (Annualized) | Metric | 3 Months Ended Mar 31, 2025 | 3 Months Ended Mar 31, 2024 | 6 Months Ended Mar 31, 2025 | 6 Months Ended Mar 31, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Return on average assets (%) | 0.93% | 0.84% | 0.98% | 0.50% | | Return on average equity (%) | 12.24% | 11.96% | 13.15% | 7.38% | | Net interest margin (tax equivalent basis) (%) | 2.93% | 2.66% | 2.84% | 2.68% | | Efficiency ratio (%) | 70.06% | 65.26% | 69.66% | 79.61% | Financial Condition Data (in thousands) | Metric | March 31, 2025 | September 30, 2024 | Change (Decrease) | | :------------------------------------ | :------------- | :----------------- | :---------------- | | Total assets | $2,376,230 | $2,450,368 | ($74,138) | | Gross loans | $1,900,660 | $1,985,146 | ($84,486) | | Total liabilities | $2,197,041 | $2,273,253 | ($76,212) | | Total stockholders' equity | $179,189 | $177,115 | $2,074 | | Total non-performing loans | $12,720 | $16,942 | ($4,222) | | Nonperforming loans as a percent of total gross loans (%) | 0.67% | 0.85% | (0.18%) | [Reconciliation of GAAP and Non-GAAP Financial Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP to non-GAAP financial measures, including net income, diluted EPS, and tangible book value per share, by excluding nonrecurring items for core operational performance Net Income Reconciliation (in thousands) | Metric | 3 Months Ended Mar 31, 2025 | 3 Months Ended Mar 31, 2024 | 6 Months Ended Mar 31, 2025 | 6 Months Ended Mar 31, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net income attributable to the Company (non-GAAP) | $5,313 | $3,561 | $9,367 | $4,481 | | Plus: Gain on sale of loans, HELOC, net of tax | - | - | $1,869 | - | | Plus: Gain on sale of equity securities, net of tax | - | - | $302 | - | | Net income attributable to the Company (GAAP) | $5,499 | $4,927 | $11,724 | $5,847 | Efficiency Ratio Reconciliation | Metric | 3 Months Ended Mar 31, 2025 | 3 Months Ended Mar 31, 2024 | Fiscal Year Ended Mar 31, 2025 | Fiscal Year Ended Mar 31, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Efficiency ratio (GAAP) (%) | 70.06% | 65.26% | 69.66% | 79.61% | | Efficiency ratio (excluding nonrecurring items) (non-GAAP) (%) | 70.96% | 74.27% | 75.42% | 84.48% | Tangible Book Value Per Share Reconciliation (in thousands, except per share data) | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | | :------------------------------------ | :------------- | :---------------- | :----------------- | | Stockholders' equity (GAAP) | $179,189 | $176,027 | $177,115 | | Less: goodwill and core deposit intangibles | ($10,164) | ($10,205) | ($10,246) | | Tangible stockholders' equity (non-GAAP) | $169,025 | $165,822 | $166,869 | | Tangible book value per share (non-GAAP) | $24.43 | $24.00 | $24.23 | | Book value per share (GAAP) | $25.90 | $25.48 | $25.72 | [Summarized Consolidated Financial Information (Quarterly Trends)](index=10&type=section&id=Summarized%20Consolidated%20Financial%20Information%20%28Quarterly%20Trends%29) This section details quarterly trends for consolidated balance sheets, income statements, noninterest income, performance, asset quality, and segmented income statements, offering a granular view of financial evolution and segment-specific profitability [Balance Sheets](index=10&type=section&id=Balance%20Sheets%20%28Quarterly%29) Summarized Consolidated Balance Sheets (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $2,376,230 | $2,388,735 | $2,450,368 | $2,393,491 | $2,364,983 | | Total loans, net of allowance for credit losses | $1,880,176 | $1,884,514 | $1,963,852 | $1,826,980 | $1,882,458 | | Total deposits | $1,789,181 | $1,832,774 | $1,880,881 | $1,712,148 | $1,787,446 | | Federal Home Loan Bank borrowings | $325,310 | $295,000 | $301,640 | $425,000 | $315,000 | | Total stockholders' equity | $179,189 | $176,027 | $177,115 | $168,000 | $165,056 | [Statements of Income](index=10&type=section&id=Statements%20of%20Income%20%28Quarterly%29) Summarized Consolidated Statements of Income (in thousands, except per share data) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $15,991 | $15,462 | $15,077 | $14,534 | $14,338 | | Total provision (credit) for credit losses | ($235) | ($451) | $1,460 | $743 | $477 | | Total noninterest income | $3,560 | $6,103 | $2,842 | $3,196 | $3,710 | | Total noninterest expense | $13,698 | $14,943 | $12,642 | $12,431 | $11,778 | | Net income | $5,499 | $6,225 | $3,672 | $4,073 | $4,927 | | Net income per share, diluted | $0.79 | $0.89 | $0.53 | $0.60 | $0.72 | [Noninterest Income Detail](index=11&type=section&id=Noninterest%20Income%20Detail%20%28Quarterly%29) Noninterest Income Detail (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Service charges on deposit accounts | $541 | $567 | $552 | $538 | $387 | | ATM and interchange fees | $632 | $665 | $642 | $593 | $585 | | Net gain on sales of loans, SBA | $1,078 | $711 | $647 | $581 | $951 | | Net gain on sales of loans, home equity lines of credit | - | $2,492 | - | - | - | | Other income | $401 | $264 | $192 | $289 | $940 | [Performance Ratios](index=11&type=section&id=Performance%20Ratios%20%28Quarterly%29) Consolidated Performance Ratios (Annualized) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Return on average assets (%) | 0.93% | 1.02% | 0.61% | 0.69% | 0.92% | | Return on average equity (%) | 12.24% | 14.07% | 8.52% | 9.86% | 13.06% | | Net interest margin (tax equivalent basis) (%) | 2.93% | 2.75% | 2.72% | 2.67% | 2.66% | | Efficiency ratio (%) | 70.06% | 69.29% | 70.55% | 70.11% | 65.26% | [Asset Quality Ratios](index=11&type=section&id=Asset%20Quality%20Ratios%20%28Quarterly%29) Consolidated Asset Quality Ratios | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Nonperforming loans as a percentage of total loans (%) | 0.67% | 0.87% | 0.85% | 0.91% | 0.82% | | Nonperforming assets as a percentage of total assets (%) | 0.55% | 0.71% | 0.71% | 0.72% | 0.68% | | Allowance for credit losses as a percentage of total loans (%) | 1.08% | 1.09% | 1.07% | 1.07% | 1.02% | | Allowance for credit losses as a percentage of nonperforming loans (%) | 161.04% | 124.85% | 125.69% | 118.12% | 124.01% | | Net charge-offs to average outstanding loans (%) | -0.01% | 0.01% | 0.02% | 0.01% | 0.01% | [Segmented Statements of Income](index=12&type=section&id=Segmented%20Statements%20of%20Income%20%28Quarterly%29) Core Banking Segment (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $14,259 | $13,756 | $14,083 | $13,590 | $13,469 | | Net income | $5,069 | $6,369 | $4,093 | $4,715 | $4,511 | | Net income per share, diluted | $0.73 | $0.91 | $0.59 | $0.69 | $0.66 | | Return on Average Assets (annualized) (%) | 0.90% | 1.09% | 0.71% | 0.83% | 0.80% | | Efficiency Ratio (annualized) (%) | 69.61% | 66.15% | 64.50% | 63.45% | 63.06% | SBA Lending Segment (Q2) (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Net interest income | $1,732 | $1,706 | $994 | $944 | $869 | | Net income (loss) | $430 | ($144) | ($421) | ($642) | $416 | | Net income (loss) per share, diluted | $0.06 | ($0.02) | ($0.06) | ($0.09) | $0.06 | | Return on Average Assets (annualized) (%) | 1.58% | (0.55%) | (1.71%) | (2.91%) | 1.81% | | Efficiency Ratio (annualized) (%) | 72.52% | 92.68% | 124.97% | 134.39% | 82.52% | [Noninterest Expense Detail by Segment](index=13&type=section&id=Noninterest%20Expense%20Detail%20by%20Segment%20%28Quarterly%29) Core Banking Segment Noninterest Expense (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Compensation | $6,637 | $7,245 | $5,400 | $5,587 | $5,656 | | Occupancy | $1,648 | $1,577 | $1,554 | $1,573 | $1,615 | | Other | $2,772 | $3,414 | $3,047 | $2,779 | $2,617 | | Total Noninterest Expense | $11,486 | $12,574 | $10,400 | $10,192 | $10,093 | SBA Lending Segment Noninterest Expense (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Compensation | $1,892 | $1,931 | $1,854 | $1,893 | $1,933 | | Other | $260 | $365 | $316 | $283 | ($313) | | Total Noninterest Expense | $2,212 | $2,369 | $2,242 | $2,239 | $1,685 | [SBA Lending Data](index=14&type=section&id=SBA%20Lending%20Data%20%28Quarterly%29) SBA Lending (Q2) Data (in thousands, except percentage data) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Final funded loans guaranteed portion sold, SBA | $15,716 | $10,785 | $10,880 | $7,515 | $15,144 | | Gross gain on sales of loans, SBA | $1,508 | $1,141 | $1,029 | $811 | $1,443 | | Weighted average gross gain on sales of loans, SBA (%) | 9.60% | 10.58% | 9.46% | 10.79% | 9.53% | | Net gain on sales of loans, SBA | $1,078 | $711 | $647 | $581 | $951 | | Weighted average net gain on sales of loans, SBA (%) | 6.86% | 6.59% | 5.95% | 7.73% | 6.28% | [Summarized Consolidated Average Balance Sheets](index=15&type=section&id=Summarized%20Consolidated%20Average%20Balance%20Sheets%20%28Quarterly%29) Summarized Consolidated Average Balance Sheets (in thousands) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :------------------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total interest-earning assets | $2,247,498 | $2,319,059 | $2,289,575 | $2,254,143 | $2,224,841 | | Total interest income (tax equivalent basis) | $31,317 | $32,949 | $32,725 | $31,581 | $30,478 | | Total interest-bearing liabilities | $1,968,689 | $2,035,355 | $1,990,790 | $1,972,635 | $1,930,784 | | Total interest expense | $14,832 | $16,987 | $17,146 | $16,560 | $15,677 | | Net interest income (taxable equivalent basis) | $16,485 | $15,962 | $15,579 | $15,021 | $14,801 | | Net interest margin (tax equivalent basis, annualized) (%) | 2.93% | 2.75% | 2.72% | 2.67% | 2.66% |

Core Viewpoint - First Savings Financial (FSFG) reported quarterly earnings of $0.76 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and showing an increase from $0.52 per share a year ago, representing an earnings surprise of 38.18% [1] Financial Performance - The company posted revenues of $19.55 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.26%, compared to $18.05 million in the same quarter last year [2] - Over the last four quarters, First Savings Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Stock Performance - First Savings Financial shares have declined approximately 5.1% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The stock is currently rated Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $19.4 million, and for the current fiscal year, it is $2.45 on revenues of $76.1 million [7] - The estimate revisions trend for First Savings Financial is mixed, and future earnings expectations will depend on management's commentary during the earnings call [4][6] Industry Context - The Financial - Savings and Loan industry is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - First Savings Financial Group, Inc. reported a net income increase for the quarter ended March 31, 2025, reaching $5.5 million, or $0.79 per diluted share, compared to $4.9 million, or $0.72 per diluted share, for the same quarter in 2024, indicating a positive trend in financial performance [1][9]. Financial Performance - Net interest income rose by $1.7 million, or 11.6%, to $16.0 million for the quarter ended March 31, 2025, driven by an increase in interest income and a decrease in interest expense [3][10]. - The tax equivalent net interest margin improved to 2.93% for the quarter ended March 31, 2025, up from 2.66% in the same period of 2024 [3][10]. - For the six months ended March 31, 2025, net income was $11.7 million, or $1.68 per diluted share, compared to $5.8 million, or $0.85 per diluted share, for the same period in 2024 [9][10]. Asset Quality - Nonperforming loans decreased by $4.2 million from $16.9 million at September 30, 2024, to $12.7 million at March 31, 2025, with the ratio of nonperforming loans to total gross loans improving to 0.67% [4][23]. - The company recognized a reversal of provision for credit losses for loans of $357,000 for the quarter ended March 31, 2025, compared to a provision of $713,000 for the same period in 2024 [4][11]. Noninterest Income and Expenses - Noninterest income decreased by $150,000 for the quarter ended March 31, 2025, primarily due to a decrease in other income, despite increases in service charges and net gains on sales of SBA loans [5][12]. - Noninterest expense increased by $1.9 million for the quarter ended March 31, 2025, mainly due to higher compensation and benefits and other operating expenses [6][13]. Tax and Equity - The income tax expense for the quarter ended March 31, 2025, was $589,000, down from $866,000 for the same period in 2024, reflecting greater utilization of investment tax credits [7][14]. - Total stockholders' equity increased by $2.1 million from $177.1 million at September 30, 2024, to $179.2 million at March 31, 2025, primarily due to an increase in retained net income [17].

Core Points - First Savings Financial Group, Inc. declared a quarterly cash dividend of $0.16 per common share, payable on or about March 31, 2025, to stockholders of record as of March 14, 2025 [1] Company Overview - First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, operating fifteen depository branches within Southern Indiana [2] - The Bank has two national lending programs focused on single-tenant net lease commercial real estate and SBA lending, primarily in the Midwest [2] - First Savings Bank is recognized as a leader in its local communities and nationally for its lending programs, with a vision to be the best community bank [2] - The Company's common shares are traded on The NASDAQ Stock Market under the symbol "FSFG" [2]

Financial Performance - Net income for the three-month period ended December 31, 2024, was $6.2 million, or $0.89 per diluted share, compared to $920,000, or $0.13 per diluted share, for the same period in 2023[193]. - Net interest income increased by $1.3 million, or 9.6%, for the three-month period ended December 31, 2024, compared to the same period in 2023[194]. - Noninterest income increased by $3.3 million for the three-month period ended December 31, 2024, primarily due to a $2.5 million net gain on the sale of loans[205]. - Noninterest expense decreased by $1.1 million for the three-month period ended December 31, 2024, compared to the same period in 2023, primarily due to reductions in compensation and benefits, occupancy and equipment, and professional fee expenses[207]. - The Company recognized an income tax expense of $848,000 for the three-month period ended December 31, 2024, compared to an income tax benefit of $476,000 for the same period in 2023, with an effective tax rate of 12.0%[208]. Balance Sheet Changes - Cash and cash equivalents increased by $24.1 million from $52.1 million at September 30, 2024, to $76.2 million at December 31, 2024[184]. - Net loans receivable decreased by $79.3 million, from $1.96 billion at September 30, 2024, to $1.88 billion at December 31, 2024, primarily due to a $87.2 million bulk sale of residential real estate home equity line of credit loans[184]. - Total deposits decreased by $48.1 million from $1.88 billion at September 30, 2024, to $1.83 billion at December 31, 2024[188]. - Stockholders' equity decreased by $1.1 million from $177.1 million at September 30, 2024, to $176.0 million at December 31, 2024[192]. - As of December 31, 2024, the Bank had cash and cash equivalents of $76.2 million and securities available-for-sale with a fair value of $241.6 million, including $130.3 million that are unpledged[209]. - As of December 31, 2024, deposits exceeding the FDIC insurance limit of $250,000 per insured account were estimated to be $570.4 million, or 31.1% of total deposits[211]. Capital and Borrowing - The Bank maintained Tier 1 capital ratio of 9.33%, common equity Tier 1 capital ratio of 11.93%, and total capital ratio of 13.01% as of December 31, 2024, all above the regulatory requirements[215]. - The Bank had the ability to borrow a total of $800.0 million from the FHLB, of which $295.0 million was borrowed and outstanding as of December 31, 2024[209]. Interest Rate Risk Management - The Company's net interest income could decrease by $2.4 million, or 3.29%, over a one-year horizon with an immediate and sustained increase in interest rates of 1.00%[226]. - An immediate and sustained decrease in rates of 1.00% would increase net interest income by $2.9 million, or 3.95% over a one-year horizon compared to a flat interest rate scenario[226]. - A 2.00% increase in interest rates would lead to a decrease in net interest income by 6.01%, while a 3.00% increase would result in an 8.68% decrease[226]. - Conversely, a 1.00% decrease in interest rates would increase net interest income by $2.9 million, or 3.95%, over the same period[226]. - The Company aims for long-term profitability while managing interest rate risk through strategies that include shortening the effective maturities of interest-earning assets[221]. - The Company relies primarily on retail deposits as a stable source of funding, which helps mitigate the effects of interest rate fluctuations[221]. - The management utilizes a Net Interest Income at Risk simulation to assess interest rate sensitivity and its impact on projected net interest income[223]. - The Company does not engage in hedging activities or high-risk derivative instruments, minimizing exposure to foreign currency exchange rate risk or commodity price risk[222]. - The Company emphasizes the origination of short-term loans to manage interest rate risk effectively[221]. Internal Controls and Compliance - The Company's management concluded that the disclosure controls and procedures were effective as of December 31, 2024, ensuring timely and accurate reporting[229]. - The internal control over financial reporting is designed to ensure reliability and compliance with U.S. GAAP[230]. - There have been no changes in internal controls over financial reporting that materially affected their effectiveness during the three months ended December 31, 2024[233]. - The Company has not engaged in any off-balance sheet transactions that are reasonably likely to have a material effect on its consolidated financial condition for the three-month period ended December 31, 2024[217].