Core Points - First Savings Financial Group, Inc. declared a quarterly cash dividend of $0.15 per common share, payable on or about June 28, 2024, to stockholders of record as of June 14, 2024 [1] Company Overview - First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, operating fifteen depository branches in 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 [2] - The Company's common shares are traded on The NASDAQ Stock Market under the symbol "FSFG" [2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 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 ( ...

Financial Performance Overview [Second Quarter Fiscal 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%20Fiscal%202024%20Financial%20Highlights) First Savings Financial Group reported a significant increase in net income to $4.9 million, or $0.72 per diluted share, for the second fiscal quarter of 2024, up from $3.7 million, or $0.54 per diluted share, in the prior year Net Income and Diluted EPS | Metric | Q2 2024 (GAAP) | Q2 2023 (GAAP) | Q2 2024 (Non-GAAP) | | :--- | :--- | :--- | :--- | | **Net Income** | $4.9 million | $3.7 million | $3.6 million | | **Diluted EPS** | $0.72 | $0.54 | $0.52 | - The Core Banking segment reported net income of **$4.5 million**, or **$0.66** per diluted share for the quarter[1](index=1&type=chunk) - Management's strategic focus includes reducing balance sheet and operating inefficiencies, maintaining strong asset quality, selective high-quality lending, growing deposits, and improving liquidity and capital[2](index=2&type=chunk) [Results of Operations for the Three Months Ended March 31, 2024](index=1&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20March%2031%2C%202024) For Q2 2024, net interest income decreased by 3.9% to $14.3 million, while noninterest income fell by $3.8 million, primarily due to the cessation of national mortgage banking operations, which was largely offset by a $6.2 million decrease in noninterest expenses - Net interest income decreased by **$574,000** due to a significant increase in interest expense on liabilities, driven by higher market rates and deposit migration to higher-yielding accounts[3](index=3&type=chunk) - The company recognized a provision for credit losses of **$477,000** (**$454,000** for loans and **$23,000** for securities) compared to a **$372,000** provision in the prior-year quarter[4](index=4&type=chunk) - Noninterest income decreased by **$3.8 million**, mainly from a **$4.1 million** drop in mortgage banking income after ceasing national operations[5](index=5&type=chunk) - Noninterest expense decreased by **$6.2 million**, primarily due to a **$2.8 million** reduction in compensation and benefits and a **$2.4 million** decrease in other operating expenses, both linked to the shutdown of the national mortgage business[6](index=6&type=chunk) [Results of Operations for the Six Months Ended March 31, 2024](index=2&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20March%2031%2C%202024) For the six months ended March 31, 2024, net income was $5.8 million, a decrease from $6.6 million in the prior year, driven by an 8.7% decrease in net interest income and a $6.2 million drop in noninterest income, partially mitigated by a $7.7 million reduction in noninterest expenses Net Income and Diluted EPS | Metric | Six Months Ended Mar 31, 2024 (GAAP) | Six Months Ended Mar 31, 2023 (GAAP) | Six Months Ended Mar 31, 2024 (Non-GAAP) | | :--- | :--- | :--- | :--- | | **Net Income** | $5.8 million | $6.6 million | $4.5 million | | **Diluted EPS** | $0.85 | $0.95 | $0.65 | - Net interest income for the six-month period decreased by **$2.7 million**, as a **$13.1 million** increase in interest expense overshadowed a **$10.4 million** increase in interest income[9](index=9&type=chunk) - Nonperforming loans increased by **$1.7 million** to **$15.6 million** at March 31, 2024, from September 30, 2023[10](index=10&type=chunk) - Noninterest income decreased by **$6.2 million**, and noninterest expense decreased by **$7.7 million**, both primarily due to the cessation of national mortgage banking operations[11](index=11&type=chunk)[12](index=12&type=chunk) [Comparison of Financial Condition at March 31, 2024](index=3&type=section&id=Comparison%20of%20Financial%20Condition%20at%20March%2031%2C%202024) As of March 31, 2024, total assets grew by $76.1 million to $2.36 billion, funded by a $105.7 million increase in deposits, which allowed for a $48.2 million reduction in FHLB borrowings, while common stockholders' equity increased by $14.1 million due to falling interest rates - Total assets increased by **$76.1 million** to **$2.36 billion**, primarily due to a **$112.2 million** growth in net loans held for investment[14](index=14&type=chunk) - Residential mortgage loan servicing rights decreased by **$59.8 million** due to the sale of the entire portfolio during the period[14](index=14&type=chunk) - Total liabilities increased by **$62.1 million**, driven by a **$105.7 million** growth in deposits, which was partially offset by a **$48.2 million** decrease in FHLB borrowings[15](index=15&type=chunk) - Common stockholders' equity rose by **$14.1 million**, primarily due to a **$12.4 million** decrease in accumulated other comprehensive loss resulting from falling long-term market interest rates[16](index=16&type=chunk) Consolidated Financial Statements and Data [Consolidated Financial Highlights](index=5&type=section&id=Consolidated%20Financial%20Highlights) This section provides a comparative summary of the company's operating results and financial condition, showing Q2 2024 net income rose to $4.9 million, with ROA improving to 0.92% and total assets growing to $2.36 billion, while nonperforming loans remained stable Operating Data (in thousands) | Operating Data (in thousands) | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net interest income | $14,338 | $14,912 | | Total noninterest income | $3,710 | $7,516 | | Total noninterest expense | $11,778 | $17,999 | | **Net income** | **$4,927** | **$3,724** | Financial Condition (in thousands) | Financial Condition (in thousands) | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Total assets | $2,364,983 | $2,288,854 | | Gross loans | $1,901,850 | $1,787,143 | | Total liabilities | $2,199,927 | $2,137,873 | | Stockholders' equity | $165,056 | $150,981 | - Key performance ratios for Q2 2024 showed a Return on Average Assets (ROA) of **0.92%** and a Return on Average Equity (ROE) of **13.06%**, both improving from the prior year[22](index=22&type=chunk) [Reconciliation of GAAP and Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Measures) The company provides reconciliations for non-GAAP financial measures to offer investors a clearer understanding of core performance, adjusting GAAP net income of $4.9 million to a non-GAAP net income of $3.6 million for Q2 2024, and calculating tangible book value per share at $22.48 - For the three months ended March 31, 2024, GAAP net income of **$4.9 million** included several nonrecurring items, resulting in a non-GAAP net income of **$3.6 million** after adjustments[26](index=26&type=chunk) Per Share Data | Per Share Data | March 31, 2024 | September 30, 2023 | | :--- | :--- | :--- | | Book value per share (GAAP) | $23.98 | $21.99 | | Tangible book value per share (non-GAAP) | $22.48 | $20.47 | [Summarized Financial Information](index=9&type=section&id=Summarized%20Financial%20Information) This section provides detailed quarterly financial data for the past five quarters, covering the consolidated balance sheet, income statement, noninterest income components, and key performance ratios, illustrating the financial impact of strategic shifts and trends in asset quality and profitability [Consolidated Balance Sheets and Income Statements](index=9&type=section&id=Consolidated%20Balance%20Sheets%20and%20Income%20Statements) The five-quarter trend shows consistent growth in total assets, primarily driven by the loan portfolio, with total deposits also growing, while the income statement reflects a significant decline in noninterest income and expense in the last two quarters following the cessation of mortgage banking operations - Total assets grew from **$2.24 billion** at March 31, 2023, to **$2.36 billion** at March 31, 2024[28](index=28&type=chunk) - Net income has been volatile over the last five quarters, with a net loss of **($747,000)** in Q4 2023 and net income of **$4.9 million** in Q2 2024[28](index=28&type=chunk) [Noninterest Income and Expense Analysis](index=10&type=section&id=Noninterest%20Income%20and%20Expense%20Analysis) A detailed five-quarter breakdown of noninterest income shows mortgage banking income dropping from $4.1 million in Q2 2023 to just $53,000 in Q2 2024, while net gain on sales of SBA loans remained a consistent contributor, and noninterest expenses related to the mortgage banking segment were eliminated in the most recent quarter Noninterest Income (in thousands) | Noninterest Income (in thousands) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Mortgage banking income | $53 | $4,149 | | Net gain on sales of loans, SBA | $951 | $907 | | **Total noninterest income** | **$3,710** | **$7,516** | - Total noninterest expense for the Mortgage Banking segment was eliminated in Q2 2024, compared to **$4.7 million** in Q2 2023, following the cessation of operations[33](index=33&type=chunk) [Key Performance and Asset Quality Ratios](index=10&type=section&id=Key%20Performance%20and%20Asset%20Quality%20Ratios) Performance ratios over the last five quarters show a recovery in ROA and ROE in Q2 2024 after a dip in late 2023, with the efficiency ratio improving dramatically to 65.26% in Q2 2024, while asset quality ratios remained relatively stable and at low levels Performance Ratios (Annualized) | Performance Ratios (Annualized) | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | Return on average assets | 0.92% | 0.16% | (0.13%) | 0.41% | 0.68% | | Net interest margin | 2.66% | 2.69% | 3.03% | 2.94% | 3.06% | | Efficiency ratio | 65.26% | 94.93% | 103.19% | 85.97% | 80.25% | Segment Performance Analysis [Segmented Income Statement Analysis](index=11&type=section&id=Segmented%20Income%20Statement%20Analysis) The Core Banking segment remains the primary earnings driver, posting $4.5 million in net income for Q2 2024, while the SBA Lending segment returned to profitability with a net income of $416,000, and the Mortgage Banking segment recorded no activity or losses after ceasing national operations Net Income (Loss) by Segment (in thousands) | Net Income (Loss) by Segment (in thousands) | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | **Core Banking** | $4,511 | $4,048 | $3,891 | | **SBA Lending** | $416 | $(470) | $97 | | **Mortgage Banking** | $0 | $(2,658) | $(264) | - National mortgage banking operations were ceased in the quarter ended December 31, 2023, with subsequent immaterial mortgage lending activity reported within the Core Banking segment[30](index=30&type=chunk) - The Core Banking segment's efficiency ratio improved to **63.06%** in Q2 2024, while the SBA Lending segment's efficiency ratio was **82.52%**[31](index=31&type=chunk) [SBA Lending Segment Key Metrics](index=14&type=section&id=SBA%20Lending%20Segment%20Key%20Metrics) The SBA Lending segment showed improved performance in Q2 2024, with the volume of guaranteed loans sold increasing to $15.1 million from $14.1 million in the prior quarter, and the weighted average net gain on these sales improving to 6.28%, contributing to the segment's return to profitability SBA Lending Data | SBA Lending Data | Q2 2024 | Q1 2024 | Q2 2023 | | :--- | :--- | :--- | :--- | | Final funded loans guaranteed portion sold (in thousands) | $15,144 | $14,098 | $15,337 | | Net gain on sales of loans, SBA (in thousands) | $951 | $834 | $907 | | Weighted average net gain on sales of loans, SBA | 6.28% | 5.92% | 5.91% | Average Balance Sheet and Net Interest Margin Analysis [Average Balances, Yields, and Costs](index=15&type=section&id=Average%20Balances%2C%20Yields%2C%20and%20Costs) For Q2 2024, the tax-equivalent net interest margin compressed to 2.66% from 3.06% YoY, driven by a significant increase in the cost of interest-bearing liabilities to 3.25%, outpacing the rise in the yield on interest-earning assets to 5.48%, despite average interest-earning assets growing by approximately $200 million Net Interest Margin Metrics (Annualized) | Metric (Annualized) | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **Yield on Interest-Earning Assets** | 5.48% | 5.01% | | **Cost of Interest-Bearing Liabilities** | 3.25% | 2.36% | | **Interest Rate Spread** | 2.23% | 2.65% | | **Net Interest Margin** | 2.66% | 3.06% | - Total average interest-earning assets increased to **$2.22 billion** for the quarter ended March 31, 2024, from **$2.02 billion** for the same period in 2023[36](index=36&type=chunk) - The average cost of interest-bearing deposits rose to **3.24%** in Q2 2024 from **2.00%** in Q2 2023, reflecting the higher interest rate environment[36](index=36&type=chunk)

First Savings Financial (FSFG) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20.93%. A quarter ago, it was expected that this bank holding company would post earnings of $0.55 per share when it actually produced earnings of $0.59, delivering a surprise of 7.27%.Over the last four qu ...

JEFFERSONVILLE, Ind., April 25, 2024 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ:FSFG) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $4.9 million, or $0.72 per diluted share, for the quarter ended March 31, 2024 compared to net income of $3.7 million, or $0.54 per diluted share, for the quarter ended March 31, 2023. Excluding nonrecurring items, the Company reported net income of $3.6 million (non-GAAP measure)(1) and net income pe ...

First Savings Financial Group Inc. (FSFG) announced a quarterly cash dividend of 15 cents per share, implying a 7.1% increase from the previous figure. This dividend will be paid out on Mar 29, 2024, to shareholders of record as of Mar 15.Prior to this, FSFG had raised its dividend by 7.7% to 14 cents per share on Nov 30, 2022. It has increased its dividend rate eight times in the past five years. The company has a five-year annualized dividend growth rate of 31.25%. Currently, the company’s payout ratio is ...

JEFFERSONVILLE, Ind., Feb. 28, 2024 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ:FSFG) (the "Company"), the holding company for First Savings Bank (the "Bank"), announced that its Board of Directors declared a quarterly cash dividend of $0.15 per common share. The dividend will be paid on or about March 29, 2024 to stockholders of record as of the close of business March 15, 2024.   The Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly a ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 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 37-156787 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____________ to _____________ Commission File Number: 1-34155 FIRST SAVINGS FINANCIAL GROUP, INC. (Exact name of registrant as specified in its charter) | Indiana | | 37-1567871 | | --- | --- ...

PART I - FINANCIAL INFORMATION This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, comprehensive income statements, statements of changes in stockholders' equity, and cash flow statements, along with detailed notes explaining accounting policies, loan portfolio specifics, investment securities, fair value measurements, and regulatory capital [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates Metric | Metric | June 30, 2023 (In thousands) | September 30, 2022 (In thousands) | Change (In thousands) | | :---------------------------------- | :----------------------------- | :-------------------------------- | :-------------------- | | Total Assets | $2,260,421 | $2,093,725 | +$166,696 | | Loans, net | $1,691,289 | $1,474,544 | +$216,745 | | Debt securities available for sale | $248,397 | $316,517 | -$68,120 | | Total Deposits | $1,659,765 | $1,515,834 | +$143,931 | | Federal Home Loan Bank borrowings | $345,000 | $307,303 | +$37,697 | | Total Stockholders' Equity | $165,068 | $151,565 | +$13,503 | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section outlines the company's revenues, expenses, and net income over specified periods, reflecting operational performance Three Months Ended June 30 | Metric | 2023 (In thousands) | 2022 (In thousands) | Change (In thousands) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- | | Net Income | $2,324 | $2,638 | -$314 | | Basic EPS | $0.34 | $0.37 | -$0.03 | | Total Interest Income | $26,798 | $18,479 | +$8,319 | | Total Interest Expense | $11,933 | $2,568 | +$9,365 | | Net Interest Income | $14,865 | $15,911 | -$1,046 | | Total Noninterest Income | $7,196 | $10,033 | -$2,837 | | Total Noninterest Expense | $18,965 | $22,835 | -$3,870 | Nine Months Ended June 30 | Metric | 2023 (In thousands) | 2022 (In thousands) | Change (In thousands) | | :-------------------------- | :-------------------- | :-------------------- | :-------------------- |\ | Net Income | $8,919 | $13,978 | -$5,059 | | Basic EPS | $1.30 | $1.97 | -$0.67 | | Total Interest Income | $75,092 | $50,042 | +$25,050 | | Total Interest Expense | $29,054 | $6,215 | +$22,839 | | Net Interest Income | $46,038 | $43,827 | +$2,211 | | Total Noninterest Income | $19,900 | $46,696 | -$26,796 | | Total Noninterest Expense | $54,475 | $73,148 | -$18,673 | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section reports net income alongside other comprehensive income or loss components, providing a complete view of non-owner changes in equity Comprehensive Income (Loss) - Three Months Ended June 30 | Metric | 2023 (In thousands) | 2022 (In thousands) | | :---------------------------------- | :-------------------- | :-------------------- | | Net Income | $2,324 | $2,638 | | Other Comprehensive Income (Loss), net of tax | $(3,366) | $(11,224) | | **Comprehensive Income (Loss)** | **$(1,042)** | **$(8,586)** | Comprehensive Income (Loss) - Nine Months Ended June 30 | Metric | 2023 (In thousands) | 2022 (In thousands) | | :---------------------------------- | :-------------------- | :-------------------- | | Net Income | $8,919 | $13,978 | | Other Comprehensive Income (Loss), net of tax | $9,514 | $(21,460) | | **Comprehensive Income (Loss)** | **$18,433** | **$(7,482)** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) This section details the changes in the company's equity, including net income, dividends, and other comprehensive income, over the reporting period Changes in Stockholders' Equity - Nine Months Ended June 30, 2023 | Metric | Amount (In thousands) | | :---------------------------------- | :-------------------- | | Balances at **October 1, 2022** | **$151,565** | | Net income | **$8,919** | | Other comprehensive income | **$9,514** | | Common stock dividends (**$0.41 per share**) | **$(2,831)** | | Purchase of treasury shares | **$(2,625)** | | **Balances at June 30, 2023** | **$165,068** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section categorizes cash inflows and outflows from operating, investing, and financing activities, illustrating liquidity and solvency Cash Flows - Nine Months Ended June 30 | Activity | 2023 (In thousands) | 2022 (In thousands) | | :---------------------------------- | :-------------------- | :-------------------- | | Net Cash Provided By Operating Activities | $13,980 | $88,556 | | Net Cash Used In Investing Activities | $(149,683) | $(380,977) | | Net Cash Provided By Financing Activities | $136,513 | $296,461 | | Net Increase in Cash and Cash Equivalents | $810 | $4,040 | | Cash and Cash Equivalents at End of Period | $42,475 | $37,468 | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, clarifying accounting policies and significant balances [1. Presentation of Interim Information](index=8&type=section&id=1.%20Presentation%20of%20Interim%20Information) This note describes the basis of presentation for interim financial statements and outlines significant accounting policies applied - First Savings Financial Group, Inc. is a financial holding company, with First Savings Bank as its commercial bank subsidiary and First Savings Insurance Risk Management, Inc. (Captive) as its insurance subsidiary, which is **planned for dissolution by September 30, 2023**[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - Loans are stated at unpaid principal balances, net of deferred loan fees and the allowance for loan losses. Income recognition is **discontinued for loans 90 days past due unless deemed collectible and well secured**[24](index=24&type=chunk)[25](index=25&type=chunk) - The allowance for loan losses is **evaluated quarterly based on historical experience, loan portfolio characteristics, economic conditions, and collateral values, consisting of specific and general components**[31](index=31&type=chunk)[32](index=32&type=chunk) [2. Investment Securities](index=14&type=section&id=2.%20Investment%20Securities) This note details the company's investment securities portfolio, including available-for-sale debt securities and impairment analysis Debt Securities Available for Sale (Fair Value) | Metric | June 30, 2023 (In thousands) | September 30, 2022 (In thousands) | | :---------------------------------- | :----------------------------- | :-------------------------------- | | Total debt securities available for sale | $248,397 | $316,517 | | Total gross unrealized losses | $22,564 | $34,468 | - The **fair value of available-for-sale debt securities in loss positions was 90.4%** of amortized cost at **June 30, 2023**, compared to **88.9%** at **September 30, 2022**[63](index=63&type=chunk) - An **other-than-temporary impairment charge of $28,000** was recognized in the nine months ended **June 30, 2023**, for privately-issued CMO and ABS securities. Management does not deem other unrealized losses as **other-than-temporary due to the intent and ability to hold securities to maturity or for the foreseeable future**[65](index=65&type=chunk)[66](index=66&type=chunk) [3. Loans and Allowance for Loan Losses](index=19&type=section&id=3.%20Loans%20and%20Allowance%20for%20Loan%20Losses) This note provides a comprehensive breakdown of the loan portfolio, the allowance for loan losses, and nonperforming assets Loan Portfolio Composition at June 30, 2023 | Loan Type | Amount (In thousands) | | :-------------------------- | :-------------------- | | Residential real estate | $487,450 | | Commercial real estate | $187,005 | | Single tenant net lease | $740,967 | | SBA commercial real estate | $49,661 | | Multifamily | $35,260 | | Residential construction | $18,758 | | Commercial construction | $10,656 | | Land and land development | $11,332 | | Commercial business | $108,375 | | SBA commercial business | $18,008 | | Consumer | $39,643 | | **Total loans** | **$1,707,115** | Allowance for Loan Losses at June 30, 2023 | Impairment Method | Amount (In thousands) | | :-------------------------- | :-------------------- | | Individually Evaluated for Impairment | $996 | | Collectively Evaluated for Impairment | $15,842 | | **Ending Balance** | **$16,838** | Nonperforming Loans at June 30, 2023 | Type | Amount (In thousands) | | :-------------------------- | :-------------------- | | Nonaccrual Loans | $11,707 | | Loans 90+ Days Past Due Still Accruing | $0 | | **Total Nonperforming Loans** | **$11,707** | Troubled Debt Restructurings (TDRs) at June 30, 2023 | Status | Amount (In thousands) | | :-------------------------- | :-------------------- | | Accruing | $2,373 | | Nonaccrual | $2,379 | | **Total TDRs** | **$4,752** | - Residential mortgage loan servicing rights (MSRs) had a fair value of **$60.6 million** at **June 30, 2023**, servicing **$4.75 billion** in **unpaid principal balance** of residential mortgage loans for others. **Net servicing income** for residential MSRs was **$7.2 million** for the nine months ended **June 30, 2023**[100](index=100&type=chunk)[101](index=101&type=chunk) [4. Deposits](index=37&type=section&id=4.%20Deposits) This note presents the composition of the company's deposit liabilities by type, reflecting funding sources Deposits at June 30, 2023 | Deposit Type | Amount (In thousands) | | :-------------------------- | :-------------------- | | Noninterest-bearing demand deposits | $315,602 | | NOW accounts | $315,187 | | Money market accounts | $301,787 | | Savings accounts | $158,007 | | Retail time deposits | $154,951 | | Brokered & reciprocal time deposits | $414,231 | | **Total** | **$1,659,765** | [5. Supplemental Disclosure for Net Income Per Share](index=37&type=section&id=5.%20Supplemental%20Disclosure%20for%20Net%20Income%20Per%20Share) This note provides detailed calculations for basic and diluted net income per common share, including weighted average shares outstanding Net Income Per Share - Nine Months Ended June 30 | Metric | 2023 | 2022 | | :-------------------------- | :-------------------- | :-------------------- | | Net income per common share, basic | $1.30 | $1.97 | | Net income per common share, diluted | $1.29 | $1.95 | | Weighted average common shares outstanding, basic | 6,858,739 | 7,082,034 | | Weighted average common shares outstanding, diluted | 6,893,766 | 7,166,632 | - Stock options for **282,489 shares** (**2023**) and **137,250 shares** (**2022**) were **excluded from diluted EPS calculations due to their antidilutive effect**[108](index=108&type=chunk) [6. Fair Value Measurements and Disclosures about Fair Value of Financial Instruments](index=38&type=section&id=6.%20Fair%20Value%20Measurements%20and%20Disclosures%20about%20Fair%20Value%20of%20Financial%20Instruments) This note explains the methodologies and hierarchy used for fair value measurements of financial instruments Assets Measured – Recurring Basis at June 30, 2023 | Asset Type | Level 1 (In thousands) | Level 2 (In thousands) | Level 3 (In thousands) | Total (In thousands) | | :---------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Securities available for sale | $0 | $248,397 | $0 | $248,397 | | Residential mortgage loans held for sale | $0 | $50,066 | $0 | $50,066 | | Derivative assets | $0 | $388 | $741 | $1,129 | | Equity securities | $149 | $0 | $0 | $149 | | Residential mortgage servicing rights | $0 | $0 | $60,649 | $60,649 | Liabilities Measured – Recurring Basis at June 30, 2023 | Liability Type | Level 1 (In thousands) | Level 2 (In thousands) | Level 3 (In thousands) | Total (In thousands) | | :---------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Derivative liabilities | $0 | $30 | $67 | $97 | Assets Measured – Nonrecurring Basis at June 30, 2023 | Asset Type | Level 1 (In thousands) | Level 2 (In thousands) | Level 3 (In thousands) | Total (In thousands) | | :---------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Collateral dependent loans | $0 | $0 | $2,658 | $2,658 | Residential Mortgage Loans Held for Sale (Fair Value Option) at June 30, 2023 | Metric | Amount (In thousands) | | :---------------------------------- | :-------------------- | | Aggregate Fair Value | $50,066 | | Aggregate Principal Balance | $49,177 | | Difference | $889 | [7. Employee Stock Ownership Plan](index=46&type=section&id=7.%20Employee%20Stock%20Ownership%20Plan) This note discusses the status and financial impact of the company's Employee Stock Ownership Plan - The ESOP loan was **fully repaid** in **Q4 2015**, and all shares have been allocated to participants, resulting in **no compensation expense recognized** for the three- and nine-month periods ended **June 30, 2023** and **2022**[136](index=136&type=chunk) - The ESOP trust held **293,695 shares** of Company common stock at **June 30, 2023**, and **September 30, 2022**[136](index=136&type=chunk) [8. Stock Based Compensation Plans](index=47&type=section&id=8.%20Stock%20Based%20Compensation%20Plans) This note details the company's stock option and restricted share plans, including compensation expense recognition - For the nine months ended **June 30, 2023**, **66,000 stock options** were granted, and **$228,000** in compensation expense was recognized. **Unrecognized compensation expense** for nonvested stock options was **$883,000**, **expected to be recognized over 3.67 years**[142](index=142&type=chunk) - For the nine months ended **June 30, 2023**, **22,000 restricted shares** were granted, and **$298,000** in compensation expense was recognized. **Unrecognized compensation expense** for nonvested restricted shares was **$1.1 million**, **expected to be recognized over 3.68 years**[143](index=143&type=chunk)[145](index=145&type=chunk)[146](index=146&type=chunk) [9. Derivative Financial Instruments](index=49&type=section&id=9.%20Derivative%20Financial%20Instruments) This note describes the company's use of derivative financial instruments for risk management and their fair value impact Derivative Financial Instruments at June 30, 2023 | Instrument | Notional Amount (In thousands) | Asset Derivatives (In thousands) | Liability Derivatives (In thousands) | | :---------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Interest rate lock commitments | $111,653 | $741 | $67 | | Forward mortgage loan sale contracts | $104,000 | $388 | $30 | | **Total** | **$215,653** | **$1,129** | **$97** | Income (Loss) from Derivative Financial Instruments - Nine Months Ended June 30 | Instrument | 2023 (In thousands) | 2022 (In thousands) | | :---------------------------------- | :-------------------- | :-------------------- | | Interest rate lock commitments | $912 | $(964) | | Forward mortgage loan sale contracts | $121 | $19,098 | | **Total** | **$1,033** | **$18,134** | [10. Regulatory Capital](index=50&type=section&id=10.%20Regulatory%20Capital) This note outlines the company's compliance with regulatory capital requirements and its capital adequacy ratios - As of **June 30, 2023**, the Bank was **categorized as 'well capitalized'** under regulatory frameworks, **exceeding all minimum capital requirements**[154](index=154&type=chunk)[228](index=228&type=chunk) Bank Capital Ratios at June 30, 2023 | Ratio | Actual Ratio | Minimum To Be Well Capitalized | | :---------------------------------- | :-------------------- | :----------------------------- | | Total capital (to risk-weighted assets) | 11.35% | 10.00% | | Tier 1 capital (to risk-weighted assets) | 10.49% | 8.00% | | Common equity tier 1 capital (to risk-weighted assets) | 10.49% | 6.50% | | Tier 1 capital (to average adjusted total assets) | 9.06% | 5.00% | [11. Recent Accounting Pronouncements](index=53&type=section&id=11.%20Recent%20Accounting%20Pronouncements) This note summarizes recently issued accounting standards and their anticipated impact on the company's financial reporting - The Company plans to adopt the **Current Expected Credit Loss (CECL) methodology** (ASU **2016-13**) effective **October 1, 2023**, **anticipating a one-time cumulative effect adjustment**[159](index=159&type=chunk) - ASU **2022-02** **eliminates current accounting guidance for Troubled Debt Restructurings (TDRs)** by creditors, **enhancing disclosure requirements** for certain loan refinancings and restructurings, effective concurrently with CECL[160](index=160&type=chunk) - ASU **2022-03** clarifies that **contractual sale restrictions on equity securities are not considered part of their fair value measurement**, effective for fiscal years beginning after **December 15, 2023**[161](index=161&type=chunk) [12. Segment Reporting](index=55&type=section&id=12.%20Segment%20Reporting) This note provides financial information disaggregated by the company's operating segments, detailing their performance and assets - The Company operates through **three primary segments: core banking, SBA lending, and mortgage banking**[163](index=163&type=chunk) Segment Profit (Loss) - Nine Months Ended June 30, 2023 | Segment | Profit (Loss) (In thousands) | | :-------------------------- | :-------------------- | | Core Banking | $12,304 | | SBA Lending | $(223) | | Mortgage Banking | $(3,162) | | **Consolidated Total** | **$8,919** | Segment Assets at June 30, 2023 | Segment | Assets (In thousands) | | :-------------------------- | :-------------------- | | Core Banking | $2,058,442 | | SBA Lending | $84,394 | | Mortgage Banking | $117,585 | | **Consolidated Total** | **$2,260,421** | [13. Revenue from Contracts with Customers](index=58&type=section&id=13.%20Revenue%20from%20Contracts%20with%20Customers) This note details revenue recognized from contracts with customers, categorized by service type, under ASC 606 Revenue from Contracts with Customers (In Scope for ASC 606) - Nine Months Ended June 30 | Revenue Type | 2023 (In thousands) | 2022 (In thousands) | | :---------------------------------- | :-------------------- | :-------------------- | | Service charges on deposit accounts | $1,538 | $1,329 | | ATM and interchange fees | $1,940 | $2,047 | | Investment advisory income | $564 | $522 | | Other | $87 | $84 | | **Total Revenue from contracts with customers** | **$4,129** | **$3,982** | [14. Mortgage Banking Income](index=59&type=section&id=14.%20Mortgage%20Banking%20Income) This note breaks down the components of income and loss derived from the company's mortgage banking activities Mortgage Banking Income Components - Nine Months Ended June 30 | Component | 2023 (In thousands) | 2022 (In thousands) | | :---------------------------------- | :-------------------- | :-------------------- | | Origination and sale of mortgage loans | $5,216 | $(2,231) | | Realized and unrealized gains from Forward sales commitments | $121 | $19,098 | | Net change in fair value of residential mortgage loan servicing rights | $(3,816) | $4,679 | | Net loan servicing income | $7,238 | $6,595 | | **Total mortgage banking income** | **$11,313** | **$36,091** | [15. Loss Contingency](index=59&type=section&id=15.%20Loss%20Contingency) This note discloses potential liabilities arising from legal proceedings and regulatory discussions, assessing their financial impact - The Bank has reached a **verbal settlement agreement for a class action lawsuit regarding NSF fees**, with an **immaterial loss contingency accrued**[175](index=175&type=chunk) - The Bank is in discussions with the Federal Reserve Board regarding an alleged **2019** violation, which could result in **enforcement action, civil money penalties, and remedial measures**, but a **range of potential loss cannot be estimated at this time**[176](index=176&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&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 comparison of balance sheet items, detailed analysis of income statement components for the three and nine months ended **June 30, 2023** and **2022**, and discussions on liquidity, capital resources, and off-balance sheet arrangements [Safe Harbor Statement for Forward-Looking Statements](index=60&type=section&id=Safe%20Harbor%20Statement%20for%20Forward-Looking%20Statements) This statement cautions that forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance - **Forward-looking statements are not guarantees of future performance** and are **subject to numerous risks and uncertainties**, including general economic conditions, interest rate changes, regulatory policies, and loan portfolio quality[179](index=179&type=chunk) [Critical Accounting Policies; Critical Accounting Estimates](index=60&type=section&id=Critical%20Accounting%20Policies%3B%20Critical%20Accounting%20Estimates) This section confirms there were no significant changes to the company's critical accounting policies or estimates during the reporting period - There were **no significant changes in the Company's critical accounting policies or estimates** during the nine-month period ended **June 30, 2023**[180](index=180&type=chunk) [Comparison of Financial Condition at June 30, 2023 and September 30, 2022](index=61&type=section&id=Comparison%20of%20Financial%20Condition%20at%20June%2030,%202023%20and%20September%2030,%202022) This section compares the company's balance sheet items between **June 30, 2023**, and **September 30, 2022**, highlighting key changes - Net loans receivable increased by **$216.7 million** to **$1.69 billion**, **primarily driven by growth** in residential mortgage, single tenant net lease commercial real estate, commercial business, and commercial real estate loans[184](index=184&type=chunk) - Securities available for sale decreased by **$68.1 million** to **$248.4 million** **due to sales, calls, maturities, and net decreases in fair value**, partially offset by purchases[186](index=186&type=chunk) - Total deposits increased by **$143.9 million** to **$1.66 billion**, **mainly due to a $168.5 million increase** in interest-bearing deposits, particularly brokered deposits[189](index=189&type=chunk) - Stockholders' equity increased by **$13.5 million** to **$165.1 million**, **primarily due to a decrease in accumulated other comprehensive loss and retained net income**[190](index=190&type=chunk) [Results of Operations for the Three Months Ended June 30, 2023 and 2022](index=62&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030,%202023%20and%202022) This section analyzes the company's financial performance for the three months ended **June 30, 2023**, compared to the prior year - Net income decreased to **$2.3 million** (**$0.34** diluted EPS) for the three months ended **June 30, 2023**, from **$2.6 million** (**$0.37** diluted EPS) in the prior year[192](index=192&type=chunk) - Net interest income decreased by **$1.0 million** (**6.6%**) to **$14.9 million**, and the **tax-equivalent net interest margin declined to 2.94% from 3.77%**, **primarily due to a $9.4 million increase** in interest expense[193](index=193&type=chunk)[195](index=195&type=chunk) - Noninterest income decreased by **$2.8 million**, **mainly due to a $2.4 million decrease** in mortgage banking income and a net loss on sale of available-for-sale securities[206](index=206&type=chunk) - Noninterest expense decreased by **$3.9 million**, **primarily due to a $4.1 million reduction** in compensation and benefits driven by staff reductions and lower incentive compensation in the mortgage banking segment[207](index=207&type=chunk) [Results of Operations for the Nine Months Ended June 30, 2023 and 2022](index=65&type=section&id=Results%20of%20Operations%20for%20the%20Nine%20Months%20Ended%20June%2030,%202023%20and%202022) This section analyzes the company's financial performance for the nine months ended **June 30, 2023**, compared to the prior year - Net income decreased to **$8.9 million** (**$1.29** diluted EPS) for the nine months ended **June 30, 2023**, from **$14.0 million** (**$1.95** diluted EPS) in the prior year[209](index=209&type=chunk) - Net interest income increased by **$2.2 million** (**5.0%**) to **$46.0 million**, but the **tax-equivalent net interest margin decreased to 3.13% from 3.73%**, as a **$25.1 million increase** in interest income was largely offset by a **$22.8 million increase** in interest expense[210](index=210&type=chunk)[211](index=211&type=chunk)[212](index=212&type=chunk) - Noninterest income decreased significantly by **$26.8 million**, **primarily due to a $24.8 million decrease** in mortgage banking income and a **$1.3 million decrease** in net gain on sale of SBA loans[219](index=219&type=chunk) - Noninterest expense decreased by **$18.7 million**, **mainly due to reductions in compensation and benefits** (**$17.8 million**), advertising (**$1.1 million**), and professional fees (**$1.0 million**), all linked to decreased mortgage banking activity[220](index=220&type=chunk) - Income tax expense decreased to **$747,000** from **$2.4 million**, with the **effective tax rate falling to 7.7% from 14.5%**, **due to investment tax credits from solar projects and lower pre-tax income**[221](index=221&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's liquidity management strategies, capital adequacy, and available funding sources - The Bank's liquidity is **managed through customer deposits, loan repayments, maturing securities, and FHLB borrowings**. At **June 30, 2023**, it had **$42.5 million** in cash and cash equivalents and **$192.2 million** in unpledged available-for-sale securities[224](index=224&type=chunk) - The Bank had **significant additional borrowing capacity**, including **$245.0 million** from the FHLB and **$57 million** from federal funds lines of credit, at **June 30, 2023**[224](index=224&type=chunk) - The Bank was **in compliance with all regulatory capital requirements and categorized as 'well-capitalized'** as of **June 30, 2023**, with capital ratios exceeding minimum thresholds[228](index=228&type=chunk) [Off-Balance Sheet Arrangements](index=72&type=section&id=Off-Balance%20Sheet%20Arrangements) This section describes the company's off-balance sheet transactions and their potential impact on financial condition - The Company engages in off-balance sheet transactions, **primarily loan commitments and letters of credit**, which involve credit, interest rate, and liquidity risk[230](index=230&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 nine months ended **June 30, 2023**[231](index=231&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risk, primarily interest rate risk, and its strategies to manage it. It includes a quantitative analysis using a Net Interest Income at Risk simulation to project the impact of hypothetical interest rate changes on net interest income [Qualitative Aspects of Market Risk](index=73&type=section&id=Qualitative%20Aspects%20of%20Market%20Risk) This section defines market risk and outlines the company's strategies for managing interest rate risk through asset-liability management - Market risk is defined as the **potential decline in fair value or net income due to changes in interest rates or financial market volatility**[234](index=234&type=chunk) - The Company **manages interest rate risk by attempting to manage the mismatch between asset and liability maturities**, emphasizing short-term loans, selling fixed-rate residential mortgages, and relying on stable retail deposits[235](index=235&type=chunk) [Quantitative Aspects of Market Risk](index=73&type=section&id=Quantitative%20Aspects%20of%20Market%20Risk) This section quantifies the potential impact of hypothetical interest rate changes on the company's net interest income using simulation models - The Company **uses a Net Interest Income at Risk simulation model to quantify the impact** of changing interest rates on projected net interest income over a one-year horizon[237](index=237&type=chunk) Simulated Impact on Net Interest Income (One Year Horizon) at June 30, 2023 | Immediate Change in Rates | Dollar Change (In thousands) | Percent Change | | :-------------------------- | :----------------------------- | :-------------------- | | +300bp | $(8,852) | (15.69)% | | +200bp | $(5,667) | (10.04)% | | +100bp | $(2,721) | (4.82)% | | -100bp | $2,638 | 4.67% | | -200bp | $3,480 | 6.17% | [Item 4. Controls and Procedures](index=75&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the effectiveness of the company's disclosure controls and procedures and internal control over financial reporting, identifying material weaknesses and outlining remediation efforts [Evaluation of Disclosure Controls and Procedures](index=75&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section assesses the effectiveness of the company's disclosure controls and procedures, identifying material weaknesses in internal control over financial reporting - Management concluded that the Company's disclosure controls and procedures were **not effective as of June 30, 2023**, due to **material weaknesses in internal control over financial reporting**[244](index=244&type=chunk)[248](index=248&type=chunk) - **Material weaknesses identified include ineffective design and operation of controls over other assets and liabilities** (e.g., capitalized professional fees, deferred compensation, litigation expenses) and over participation loan sales (review of contracts for sales treatment)[249](index=249&type=chunk) [Changes in Internal Controls](index=76&type=section&id=Changes%20in%20Internal%20Controls) This section describes management's ongoing remediation efforts for identified material weaknesses in internal control over financial reporting - During the quarter ended **June 30, 2023**, management **continued remediation efforts for the identified material weaknesses** by adding a second level of executive review for significant account reconciliations and participation loan sales contracts, along with additional training and oversight[251](index=251&type=chunk) - **No other changes in internal controls over financial reporting materially affected**, or are reasonably likely to materially affect, internal control during the quarter ended **June 30, 2023**[252](index=252&type=chunk) PART II - OTHER INFORMATION This section provides additional disclosures on legal proceedings, risk factors, equity sales, and other relevant information [Item 1. Legal Proceedings](index=77&type=section&id=Item%201.%20Legal%20Proceedings) This section discloses ongoing legal matters, including discussions with the Federal Reserve Board regarding an alleged violation and a class action lawsuit, for which the company is cooperating and assessing potential impacts - The Bank is in discussions with the Federal Reserve Board regarding an alleged **2019** violation, which could lead to **enforcement action, civil money penalties, and remedial measures**, though a **range of potential loss cannot be estimated**[255](index=255&type=chunk) - A **verbal settlement agreement has been reached for a class action lawsuit concerning NSF fees**, with an **immaterial loss contingency accrued**[256](index=256&type=chunk) [Item 1A. Risk Factors](index=78&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the Annual Report on Form **10-K** for a comprehensive list of risk factors, while highlighting new or increased scrutiny risks related to recent bank failures, depositor confidence, and the federal debt ceiling - **No material changes to the risk factors described in the Annual Report on Form 10-K have occurred**[260](index=260&type=chunk) - **New or increased scrutiny risks include potential negative impacts on stock price from recent bank failures and depositor confidence**, **challenges in managing liquidity, interest rate risk, and capital levels**, and the **effects of federal debt ceiling issues on securities valuation and borrowing costs**[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=79&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities,%20Use%20of%20Proceeds,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) This section reports no stock repurchase activity during the quarter ended **June 30, 2023**, and details the remaining authorization under the company's stock repurchase program - **No shares were purchased under the stock repurchase program** during the quarter ended **June 30, 2023**[269](index=269&type=chunk) - The Company has an **authorized stock repurchase program for up to 356,220 shares**, with **27,548 shares remaining for repurchase** as of **June 30, 2023**[269](index=269&type=chunk) [Item 3. Defaults Upon Senior Securities](index=79&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item states that it is not applicable to the company - **Not applicable**[266](index=266&type=chunk) [Item 4. Mine Safety Disclosures](index=79&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item states that it is not applicable to the company - **Not applicable**[267](index=267&type=chunk) [Item 5. Other Information](index=79&type=section&id=Item%205.%20Other%20Information) This section reports that no directors or executive officers adopted or terminated any Rule **10b5-1** trading plans or non-Rule **10b5-1** trading arrangements during the quarter - **No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements** during the quarter ended **June 30, 2023**[268](index=268&type=chunk) [Item 6. Exhibits](index=80&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form **10-Q**, including various certifications and XBRL formatted financial statements - Exhibits include **Rule 13a-14(a)/15d-14(a) Certifications of the Chief Executive Officer and Chief Financial Officer, Section 1350 Certifications, and XBRL formatted financial statements**[272](index=272&type=chunk) SIGNATURES This section contains the official signatures of the company's executive officers, certifying the accuracy of the report - The report was **signed by Larry W. Myers, President and Chief Executive Officer, and Anthony A. Schoen, Chief Financial Officer, on August 9, 2023**[274](index=274&type=chunk)