First Savings Financial Group, Inc. Reports Financial Results For The Fiscal Year Ended September 30, 2025

Rhea-AI Summary

First Savings Financial Group (NASDAQ: FSFG) reported fiscal 2025 net income of $23.2 million or $3.32 per diluted share, versus $13.6 million, or $1.98, in fiscal 2024. Excluding merger-related items, non-GAAP net income was $23.8 million and non-GAAP EPS was $3.41. Net interest income rose 12.5% to $65.3 million and tax-equivalent NIM improved to 2.94%. Customer deposits increased $118.2 million, while total assets fell $50.8 million, driven by an $87.2 million HELOC sale. The company announced a pending merger with First Merchants Corporation (agreement dated September 25, 2025) and expects planned integration in 2026. The Bank remained well-capitalized at September 30, 2025.

Positive

• Net income of $23.2M for fiscal 2025
• Diluted EPS increased to $3.32
• Net interest income +12.5% to $65.3M
• Tax-equivalent NIM improved to 2.94%
• Customer deposits increased by $118.2M
• Bank remained well-capitalized at 9/30/2025

Negative

• Total assets declined by $50.8M year-over-year
• Net loans held for investment fell $77.0M
• HELOC sale of $87.2M reduced loan balances
• Total deposits decreased due to $289.2M brokered outflows
• Noninterest expense increased by $4.1M

Insights

Banking Financial Analyst

Strong fiscal 2025 performance: higher earnings, improved margins, and healthier credit metrics; merger announced with First Merchants.

The Company reported net income of $23.2 million ($3.32 diluted) for year ended September 30, 2025, up from $13.6 million ($1.98). Net interest income rose $7.2 million or 12.5% to $65.3 million and tax‑equivalent net interest margin improved to 2.94% from 2.68%. Noninterest income increased driven by a $4.0 million net gain on HELOC sales and higher SBA sale gains, while noninterest expense rose due to higher compensation and a contingent liability accrual.

Credit metrics moved favorably: nonperforming loans fell by $2.3 million to $14.6 million, provisions were lower year over year, and net charge‑offs remain tangible but concentrated in unguaranteed SBA portions. Balance sheet shifts include a $87.2 million HELOC sale, a $133.4 million increase in FHLB borrowings, and customer deposits up $118.2 million since prior year. These are observable drivers of improved returns.

Watch the planned integration timeline with First Merchants following the September 25, 2025 merger agreement and monitor quarterly trends in charge‑offs, provision levels, and deposit composition over the next 12 months. The near‑term tax rate normalization and any further nondiscretionary expenses tied to the merger will materially affect retained earnings and capital through the planned 2026 integration.

M&A Integration Specialist

Merger announced with First Merchants adds integration risk but the Company enters the deal on stronger operating results and higher equity.

Management announced an agreement to merge with First Merchants Corporation on September 25, 2025. At close the Company reported an increase in stockholders\' equity of $16.4 million year over year to $193.5 million, driven by retained earnings, which provides a clearer capital base for transaction execution. The release discloses an expectation of a planned 2026 integration.

Key dependencies include realized cost synergies, retention of customer deposits (noting a switch from brokered deposits toward customer deposits), and management of one‑time integration and merger‑related expenses which were already excluded in non‑GAAP figures. Monitor the cadence of merger‑related charges disclosed in future filings, deposit retention metrics in the two quarters following close, and any disclosed regulatory approvals or conditions during the next 6–12 months.

JEFFERSONVILLE, Ind., Oct. 29, 2025 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $23.2 million, or $3.32 per diluted share, for the year ended September 30, 2025, compared to net income of $13.6 million, or $1.98 per diluted share, for the year ended September 30, 2024. Excluding expenses related to the announced and pending merger with First Merchants Corporation, the Company reported net income of $23.8 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $3.41^. (non-GAAP measure)⁽¹⁾ for the year ended September 30, 2025. Excluding all nonrecurring items, the Company reported net income of $22.7 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $3.25 (non-GAAP measure)⁽¹⁾ for the year ended September 30, 2025 compared to $11.7 million (non-GAAP measure)⁽¹⁾, or $1.70 per diluted share (non-GAAP measure)⁽¹⁾ for the year ended September 30, 2024.

Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the strong performance for the 2025 fiscal year and continually improving trends.  Earnings per share, diluted, increased significantly from $1.98 for 2024 to $3.32 for 2025.  Annualized return on average assets, return on average equity, and net interest margin (tax equivalent basis) improved 39 basis points, 450 basis points, and 26 basis points, respectively, when compared to the prior fiscal year.  The efficiency, nonperforming loans, and nonperforming assets ratios decreased 723 basis points, 8 basis points, and 5 basis points, respectively, from September 2024.  Additionally, customer deposits increased $118.2 million since September 2024 and the SBA Lending segment posted its third consecutive profitable quarter, which included a solid level of loans originations and sales.  On September 25, 2025, we announced our agreement to merge with First Merchants Corporation.  We are proud of what we’ve accomplished throughout our history and the 17 years since our public listing on Nasdaq Capital Markets.  We will continue to execute and enhance shareholder value as we prepare for the planned 2026 integration and believe that the First Savings franchise will be a meaningful contributor to the future success of First Merchants.”

(1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.

Results of Operations for the Fiscal Years Ended September 30, 2025 and 2024

Net interest income increased $7.2 million, or 12.5%, to $65.3 million for the year ended September 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the year ended September 30, 2025 was 2.94% as compared to 2.68% for the same period in 2024. The increase in net interest income was due to a $5.5 million increase in interest income and a $1.7 million decrease in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for unfunded lending commitments of $452,000 for the year ended September 30, 2025 and a reversal of provision for credit losses for loans and securities of $118,000 and $9,000, respectively, compared to provision for credit losses for loans and securities of $3.5 million and $21,000, respectively, and a reversal of provision for unfunded lending commitments of $421,000 for the same period in 2024. Provisions for the year ended September 30, 2025 were lower due to lower loan balances and a decrease in qualitative reserves. The Company recognized net charge-offs totaling $887,000 for the year ended September 30, 2025, of which $454,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $527,000 in 2024, of which $104,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $2.3 million from $16.9 million at September 30, 2024 to $14.6 million at September 30, 2025.   

Noninterest income increased $6.3 million for the year ended September 30, 2025 as compared to the same period in 2024. The increase was due primarily to a $4.0 million net gain on sales of home equity lines of credit (“HELOC”) in 2025 with no corresponding amount for 2024, a $1.2 million increase in net gain on sale of SBA loans, and increases in ATM and interchange fees and service charges on deposits of $374,000 and $277,000, respectively.

Noninterest expense increased $4.1 million for the year ended September 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $2.9 million and $1.2 million, respectively. The increase in compensation and benefits is primarily due to routine salary increases and increases in incentive and bonus compensation in 2025 related to stronger Company performance. The increase in other operating expenses was due primarily to a $395,000 accrued contingent liability associated with employee benefits recognized in the 2025 period with no corresponding amount in 2024 and a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period with no corresponding amount for 2025.  

The Company recognized income tax expense of $3.7 million for the year ended September 30, 2025 compared to $1.0 million for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period. The effective tax rate for 2025 was 13.8% compared to 7.0%. The effective tax rate is below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

Results of Operations for the Three Months Ended September 30, 2025 and 2024

The Company reported net income of $5.3 million, or $0.75 per diluted share, for the three months ended September 30, 2025, compared to net income of $3.7 million, or $0.53 per diluted share, for the three months ended September 30, 2024. Excluding expenses related to the announced and pending merger with First Merchants Corporation, the Company reported net income of $5.9 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.84^. (non-GAAP measure)⁽¹⁾ for the three months ended September 30, 2025. Excluding all nonrecurring items, the Company reported net income of $5.8 million (non-GAAP measure)⁽¹⁾ and net income per diluted share of $0.82 (non-GAAP measure)⁽¹⁾ for the three months ended September 30, 2025 compared to $3.7 million (non-GAAP measure)⁽¹⁾, or $0.53 per diluted share (non-GAAP measure)⁽¹⁾ for the three months ended September 30, 2024.

Net interest income increased $2.1 million, or 13.6%, to $17.1 million for the three months ended September 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended September 30, 2025 was 3.07% as compared to 2.72% for the same period in 2024. The increase in net interest income was due to an increase of $67,000 in interest income and a decrease of $2.0 million in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

The Company recognized a provision for credit losses for loans and unfunded lending commitments of $383,000 and $206,000, respectively, and a reversal of provision for credit losses on securities of $1,000 for the three months ended September 30, 2025, compared to a provision for credit losses for loans of $1.8 million and a reversal of provision for unfunded lending commitments and securities of $262,000 and $86,000, respectively, for the same period in 2024. The Company recognized net charge-offs totaling $616,000 during the three months ended September 30, 2025, of which $402,000 was related to unguaranteed portions of SBA loans. During the three months ended September 30, 2024, the Company recognized net charge-offs of $304,000, of which $120,000 was related to unguaranteed portions of SBA loans.

Noninterest income increased $1.8 million for the three months ended September 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in net gain on sales of HELOC and net gain on sales of SBA loans of $929,000 and $853,000, respectively. There was no gain on sales of HELOC in the 2024 period as sales of this product commenced in fiscal 2025.

Noninterest expense increased $2.0 million for the three months ended September 30, 2025 as compared to the same period in 2024. The increase in compensation and benefits is primarily due to routine salary increases and increases in incentive and bonus compensation in 2025 related to stronger Company performance.  

The Company recognized income tax expense of $1.3 million for the three months ended September 30, 2025 compared to $145,000 for the same period in 2024. The increase is due primarily to higher taxable income in 2025 as compared to 2024. The effective tax rate for 2025 was 19.8% compared to 3.8% for 2024. The effective tax rate is below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

Comparison of Financial Condition at September 30, 2025 and September 30, 2024

Total assets decreased $50.8 million, from $2.45 billion at September 30, 2024 to $2.40 billion at September 30, 2025. Net loans held for investment decreased $77.0 million during the year ended September 30, 2025, due primarily to an $87.2 million sale of HELOC during the year ended September 30, 2025 that were previously classified as held for investment at September 30, 2024. Total loans held for sale increased $25.7 million due primarily to an increase in HELOC loans held for sale of $36.1 million, partially offset by a decrease in SBA loans held for sale of $10.9 million.  

Total liabilities decreased $67.2 million due primarily to a decrease in total deposits and subordinated debt and other borrowings of $171.0 and $19.8 million, respectively, partially offset by an increase in FHLB borrowings of $133.4 million. The decrease in total deposits was due to a decrease in brokered deposits of $289.2 million, which was due primarily to proceeds from the aforementioned HELOC sale and greater utilization of FHLB borrowings, partially offset by an increase in customer deposits of $118.2 million. The decrease in subordinated debt and other borrowings is due to the redemption of $20.0 million of subordinated notes during the quarter ended June 30, 2025. As of September 30, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 41.9% of total deposits and 25.6% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

Total stockholders’ equity increased $16.4 million, from $177.1 million at September 30, 2024 to $193.5 million at September 30, 2025, due primarily to a $18.8 million increase in retained net income, partially offset by a $3.9 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the year ended September 30, 2025, which resulted in a decrease in the fair value of securities available for sale. At September 30, 2025 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.

Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed in the Company's periodic filings with the Securities and Exchange Commission.

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

Contact:
Tony A. Schoen, CPA
Chief Financial Officer
812-283-072

FIRST SAVINGS FINANCIAL GROUP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
	Three Months Ended								Years Ended
OPERATING DATA:	September 30,								September 30,
(In thousands, except share and per share data)		2025				2024				2025				2024
Total interest income	$	32,290			$	32,223			$	127,527			$	121,988
Total interest expense		15,160				17,146				62,219				63,926
Net interest income		17,130				15,077				65,308				58,062
Provision (credit) for credit losses - loans		383				1,808				(118	)			3,492
Provision (credit) for unfunded lending commitments		206				(262	)			452				(421	)
Provision (credit) for credit losses - securities		(1	)			(86	)			(9	)			21
Total provision for credit losses		588				1,460				325				3,092
Net interest income after provision for credit losses		16,542				13,617				64,983				54,970
Total noninterest income		4,659				2,842				18,842				12,530
Total noninterest expense		14,628				12,642				56,962				52,890
Income before income taxes		6,573				3,817				26,863				14,610
Income tax expense		1,302				145				3,702				1,018
Net income	$	5,271			$	3,672			$	23,161			$	13,592
Net income per share, basic	$	0.77			$	0.54			$	3.37			$	1.99
Weighted average shares outstanding, basic		6,881,658				6,833,376				6,871,242				6,830,466
Net income per share, diluted	$	0.75			$	0.53			$	3.32			$	1.98
Weighted average shares outstanding, diluted		6,998,118				6,877,518				6,976,901				6,856,520
Performance ratios (annualized)
Return on average assets		0.88	%			0.61	%			0.96	%			0.58	%
Return on average equity		11.28	%			8.52	%			12.80	%			8.31	%
Return on average common stockholders' equity		11.28	%			8.52	%			12.80	%			8.31	%
Net interest margin (tax equivalent basis)		3.07	%			2.72	%			2.94	%			2.68	%
Efficiency ratio		67.13	%			70.55	%			67.69	%			74.92	%
									QTD								FYTD
FINANCIAL CONDITION DATA:	September 30,				June 30,				Increase				September 30,				Increase
(In thousands, except per share data)		2025				2025			(Decrease)					2024			(Decrease)
Total assets	$	2,399,532			$	2,416,675			$	(17,143	)		$	2,450,368			$	(50,836	)
Cash and cash equivalents		31,851				52,123				(20,272	)			52,142				(20,291	)
Investment securities		252,620				244,284				8,336				249,719				2,901
Loans held for sale		51,454				19,178				32,276				25,716				25,738
Gross loans		1,907,107				1,916,343				(9,236	)			1,985,146				(78,039	)
Allowance for credit losses		20,289				20,522				(233	)			21,294				(1,005	)
Interest earning assets		2,232,497				2,260,099				(27,602	)			2,277,512				(45,015	)
Goodwill		9,848				9,848				-				9,848				-
Core deposit intangibles		234				275				(41	)			398				(164	)
Noninterest-bearing deposits		187,564				202,649				(15,085	)			191,528				(3,964	)
Interest-bearing deposits (customer)		1,302,378				1,253,525				48,853				1,180,196				122,182
Interest-bearing deposits (brokered)		219,940				280,020				(60,080	)			509,157				(289,217	)
Federal Home Loan Bank borrowings		435,000				434,924				76				301,640				133,360
Subordinated debt and other borrowings		28,762				28,722				40				48,603				(19,841	)
Total liabilities		2,206,053				2,232,853				(26,800	)			2,273,253				(67,200	)
Accumulated other comprehensive loss		(15,087	)			(20,061	)			4,974				(11,195	)			(3,892	)
Total stockholders' equity		193,479				183,822				9,657				177,115				16,364
Book value per share	$	27.73			$	26.35				1.38			$	25.72				2.01
Tangible book value per share (non-GAAP) (1)		26.28				24.90				1.39				24.23				2.05
Non-performing assets:
Nonaccrual loans - SBA guaranteed	$	2,699			$	2,713			$	(14	)		$	5,036			$	(2,337	)
Nonaccrual loans		11,926				12,502				(576	)			11,906				20
Total nonaccrual loans	$	14,625			$	15,215			$	(590	)		$	16,942			$	(2,317	)
Accruing loans past due 90 days		-				-				-				-				-
Total non-performing loans		14,625				15,215				(590	)			16,942				(2,317	)
Foreclosed real estate		1,093				1,113				(20	)			444				649
Total non-performing assets	$	15,718			$	16,328			$	(610	)		$	17,386			$	(1,668	)
Asset quality ratios:
Allowance for credit losses as a percent of total gross loans		1.06	%			1.07	%			(0.01	%)			1.07	%			(0.01	%)
Allowance for credit losses as a percent of nonperforming loans		138.73	%			134.88	%			3.85	%			125.69	%			13.04	%
Nonperforming loans as a percent of total gross loans		0.77	%			0.79	%			(0.03	%)			0.85	%			(0.08	%)
Nonperforming assets as a percent of total assets		0.66	%			0.68	%			(0.02	%)			0.71	%			(0.05	%)
(1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):
The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's
performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to
evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the
Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
	Three Months Ended								Fiscal Year Ended
Net Income	September 30,								September 30,
(In thousands)		2025				2024				2025				2024
Net income attributable to the Company (non-GAAP)	$	5,771			$	3,660			$	22,680			$	11,674
Plus: Insured recovery of legal fees previously recognized, net of tax		157				-				157				-
Plus: Gain on life insurance		-				-				255				-
Plus: Gain on lease termination, net of tax effect		-				-				378				-
Plus: Gain on sale of equity securities, net of tax effect		-				-				313				-
Plus: Gain (loss) on premises and equipment, net of tax effect		-				- 3				35				87
Plus: Record Visa Class C shares, net of tax effect		-				15				-				342
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		-				-				-				492
Plus: Reversal of contingent liability, net of tax effect		-				-				-				212
Plus: Adjustment to MSR valuation allowance, net of tax effect		-				-				-				583
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-				-				-				117
Plus: Distribution from equity investment, net of tax effect		-				-				-				85
Less: Merger related professional fees, net of tax effect		(657	)			-				(657	)			-
Net income attributable to the Company (GAAP)	$	5,271			$	3,672			$	23,161			$	13,592
Net Income per Share, Diluted
Net income per share attributable to the Company, diluted (non-GAAP)	$	0.82			$	0.53			$	3.25			$	1.70
Plus: Insured recovery of legal fees previously recognized, net of tax		0.02		-		-		-		0.02				-
Plus: Gain on life insurance		-		-		-		-		0.04				-
Plus: Gain on lease termination, net of tax effect		-		-		-		-		0.05				-
Plus: Gain on sale of equity securities, net of tax effect		-		-		-		-		0.04				-
Plus: Gain (loss) on premises and equipment, net of tax effect		-		-		-		-		0.01				0.01
Plus: Record Visa Class C shares, net of tax effect		-		-		-		-		-				0.05
Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect		-		-		-		-		-				0.07
Plus: Reversal of contingent liability, net of tax effect		-		-		-		-		-				0.03
Plus: Adjustment to MSR valuation allowance, net of tax effect		-		-		-		-		-				0.09
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-		-		-		-		-				0.02
Plus: Distribution from equity investment, net of tax effect		-		-		-		-		-				0.01
Less: Merger related professional fees, net of tax effect		(0.09	)	-		-		-		(0.09	)			-
Net income per share, diluted (GAAP)	$	0.75			$	0.53			$	3.32			$	1.98
Core Bank Segment Net Income
(In thousands)
Net income attributable to the Core Bank (non-GAAP)	$	5,689			$	4,081			$	21,920			$	15,941
Plus: Insured recovery of legal fees previously recognized, net of tax		157		-		-		-		157				-
Plus: Gain on life insurance		-		-		-		-		255				-
Plus: Gain on lease termination, net of tax effect		-		-		-		-		378				-
Plus: Gain on sale of equity securities, net of tax effect		-		-		-		-		313				-
Plus: Gain (loss) on premises and equipment, net of tax effect		-		-		- 3		-		35				87
Plus: Record Visa Class C shares, net of tax effect		-		-		15		-		-				342
Plus: Reversal of contingent liability, net of tax effect		-		-		-		-		-				212
Plus: Adjustment to MSR valuation allowance, net of tax effect		-		-		-		-		-				583
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-		-		-		-		-				117
Plus: Distribution from equity investment, net of tax effect		-		-		-		-		-				85
Less: Merger related professional fees, net of tax effect		(657	)	-		-		-		(657	)			-
Net income attributable to the Core Bank (GAAP)	$	5,189			$	4,093			$	22,401			$	17,367
Core Bank Segment Net Income per Share, Diluted
Core Bank net income per share, diluted (non-GAAP)	$	0.82			$	0.60			$	3.14			$	2.33
Plus: Insured recovery of legal fees previously recognized, net of tax		0.02		-		-		-		0.02				-
Plus: Gain on life insurance		-		-		-		-		0.04				-
Plus: Gain on lease termination, net of tax effect		-		-		-		-		0.05				-
Plus: Gain on sale of equity securities, net of tax effect		-		-		-		-		0.04				-
Plus: Gain (loss) on premises and equipment, net of tax effect		-		-		-		-		0.01				0.01
Plus: Record Visa Class C shares, net of tax effect		-		-		-		-		-				0.05
Plus: Reversal of contingent liability, net of tax effect		-		-		-		-		-				0.03
Plus: Adjustment to MSR valuation allowance, net of tax effect		-		-		-		-		-				0.09
Plus: Adjustment to previous data processing contract termination accrual, net of tax effect		-		-		-		-		-				0.02
Plus: Distribution from equity investment, net of tax effect		-		-		-		-		-				0.01
Less: Merger related professional fees, net of tax effect		(0.09	)	-		-		-		(0.09	)			-
Core Bank net income per share, diluted (GAAP)	$	0.75			$	0.60			$	3.21			$	2.54
RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):	Three Months Ended								Fiscal Year Ended
Efficiency Ratio	September 30,								September 30,
(In thousands)		2025				2024				2025				2024
Net interest income (GAAP)	$	17,130			$	15,077			$	65,308			$	58,062
Noninterest income (GAAP)		4,659				2,842				18,842				12,530
Noninterest expense (GAAP)		14,628				12,642				56,962				52,890
Efficiency ratio (GAAP)		67.13	%			70.55	%			67.69	%			74.92	%
Noninterest income (GAAP)	$	4,659			$	2,842			$	18,842			$	12,530
Less: Gain on life insurance		-				-				(255	)			-
Less: Gain on lease termination		-				-				(487	)			-
Less: Gain on sale of equity securities		-				-				(403	)			-
Less: (Gain) loss on premises and equipment		-				4				(45	)			(116	)
Less: Record Visa Class C shares		-				(20	)			-				(456	)
Less: Adjustment to MSR valuation allowance		-				-				-				(777	)
Less: Distribution from equity investment		-				-				-				(113	)
Noninterest income (Non-GAAP)		4,659				2,826				17,652				11,068
Noninterest expense (GAAP)	$	14,628			$	12,642			$	56,962			$	52,890
Plus: Insured recovery of legal fees previously recognized		203				-				203				-
Plus: Decrease in loss contingency for SBA-guaranteed loans		-				-				-				656
Plus: Reversal of contingent liability		-				-				-				283
Plus: Adjustment to previous data processing contract termination accrual		-				-				-				156
Less: Merger related professional fees		(707	)			-				(707	)			-
Noninterest expense (Non-GAAP)	$	14,124			$	12,642			$	56,458			$	53,985
Efficiency ratio (excluding nonrecurring items) (non-GAAP)		64.82	%			70.61	%			68.05	%			78.09	%
									QTD								FYTD
Tangible Book Value Per Share	September 30,				June 30,				Increase				September 30,				Increase
(In thousands, except share and per share data)		2025				2025			(Decrease)					2024			(Decrease)
Stockholders' equity (GAAP)	$	193,479			$	183,822			$	9,657			$	177,115			$	16,364
Less: goodwill and core deposit intangibles		(10,082	)			(10,123	)			41				(10,246	)			164
Tangible stockholders' equity (non-GAAP)	$	183,397			$	173,699			$	9,698			$	166,869			$	16,528
Outstanding common shares		6,977,308				6,976,558			$	750				6,887,106			$	90,202
Tangible book value per share (non-GAAP)	$	26.28			$	24.90			$	1.39			$	24.23			$	2.05
Book value per share (GAAP)	$	27.73			$	26.35			$	1.38			$	25.72			$	2.01
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):	As of
Summarized Consolidated Balance Sheets	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands, except per share data)		2025				2025				2025				2024				2024
Total cash and cash equivalents	$	31,851			$	52,123			$	28,683			$	76,224			$	52,142
Total investment securities		252,620				244,284				244,084				242,634				249,719
Total loans held for sale		51,454				19,178				61,239				24,441				25,716
Total loans, net of allowance for credit losses		1,886,818				1,895,821				1,880,176				1,884,514				1,963,852
Loan servicing rights		3,085				2,869				2,744				2,661				2,754
Total assets		2,399,532				2,416,675				2,376,230				2,388,735				2,450,368
Customer deposits	$	1,489,942			$	1,456,174			$	1,392,411			$	1,395,766			$	1,371,724
Brokered deposits		219,940				280,020				396,770				437,008				509,157
Total deposits		1,709,882				1,736,194				1,789,181				1,832,774				1,880,881
Federal Home Loan Bank borrowings		435,000				434,924				325,310				295,000				301,640
Common stock and additional paid-in capital	$	30,452			$	30,090			$	28,650			$	28,382			$	27,725
Retained earnings - substantially restricted		192,114				187,969				182,918				178,526				173,337
Accumulated other comprehensive loss		(15,087	)			(20,061	)			(19,385	)			(17,789	)			(11,195	)
Unearned stock compensation		(1,829	)			(2,005	)			(862	)			(973	)			(901	)
Less treasury stock, at cost		(12,171	)			(12,171	)			(12,132	)			(12,119	)			(11,851	)
Total stockholders' equity		193,479				183,822				179,189				176,027				177,115
Outstanding common shares		6,977,308				6,976,558				6,919,136				6,909,173				6,887,106
	Three Months Ended
Summarized Consolidated Statements of Income	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands, except per share data)		2025				2025				2025				2024				2024
Total interest income	$	32,290			$	31,965			$	30,823			$	32,449			$	32,223
Total interest expense		15,160				15,240				14,832				16,987				17,146
Net interest income		17,130				16,725				15,991				15,462				15,077
Provision (credit) for credit losses - loans		383				347				(357	)			(491	)			1,808
Provision (credit) for unfunded lending commitments		206				77				123				46				(262	)
Provision (credit) for credit losses - securities		(1	)			(1	)			(1	)			(6	)			(86	)
Total provision (credit) for credit losses		588				423				(235	)			(451	)			1,460
Net interest income after provision (credit) for credit losses		16,542				16,302				16,226				15,913				13,617
Total noninterest income		4,659				4,520				3,560				6,103				2,842
Total noninterest expense		14,628				13,693				13,698				14,943				12,642
Income before income taxes		6,573				7,129				6,088				7,073				3,817
Income tax expense		1,302				963				589				848				145
Net income		5,271				6,166				5,499				6,225				3,672
Net income per share, basic	$	0.77			$	0.90			$	0.80			$	0.91			$	0.54
Weighted average shares outstanding, basic		6,881,658				6,881,077				6,875,826				6,851,153				6,832,626
Net income per share, diluted	$	0.75			$	0.88			$	0.79			$	0.89			$	0.53
Weighted average shares outstanding, diluted		6,998,118				6,977,674				6,960,020				6,969,223				6,894,532
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Noninterest Income Detail	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2025				2025				2025				2024				2024
Service charges on deposit accounts	$	582			$	537			$	541			$	567			$	552
ATM and interchange fees		698				648				632				665				642
Net unrealized gain (loss) on equity securities		(50	)			15				47				78				28
Net gain on equity securities		-				-				-				403				-
Net gain on sales of loans, Small Business Administration		1,500				932				1,078				711				647
Net gain on sales of loans, home equity lines of credit		929				617				-				2,492				-
Mortgage banking income		79				96				104				78				6
Increase in cash surrender value of life insurance		404				358				380				361				363
Gain on life insurance		-				147				-				108				-
Commission income		197				184				255				210				294
Real estate lease income		16				132				122				121				122
Net gain (loss) on premises and equipment		-				-				-				45				(4	)
Other income		304				854				401				264				192
Total noninterest income	$	4,659			$	4,520			$	3,560			$	6,103			$	2,842
	Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
Consolidated Performance Ratios (Annualized)		2025				2025				2025				2024				2024
Return on average assets		0.88	%			1.02	%			0.93	%			1.02	%			0.61	%
Return on average equity		11.28	%			13.66	%			12.24	%			14.07	%			8.52	%
Return on average common stockholders' equity		11.28	%			13.66	%			12.34	%			14.07	%			8.52	%
Net interest margin (tax equivalent basis)		3.07	%			2.99	%			2.93	%			2.75	%			2.72	%
Efficiency ratio		67.13	%			64.45	%			70.06	%			69.29	%			70.55	%
	As of or for the Three Months Ended
	September 30,				June 30,				March 31,				December 31,				September 30,
Consolidated Asset Quality Ratios		2025				2025				2025				2024				2024
Nonperforming loans as a percentage of total loans		0.77	%			0.79	%			0.67	%			0.87	%			0.85	%
Nonperforming assets as a percentage of total assets		0.66	%			0.68	%			0.55	%			0.71	%			0.71	%
Allowance for credit losses as a percentage of total loans		1.06	%			1.07	%			1.08	%			1.09	%			1.07	%
Allowance for credit losses as a percentage of nonperforming loans		138.73	%			134.88	%			161.04	%			124.85	%			125.69	%
Net charge-offs to average outstanding loans		0.03	%			0.02	%			-0.01	%			0.01	%			0.02	%
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2025				2025				2025				2024				2024
Core Banking Segment:
Net interest income	$	15,402			$	15,086			$	14,259			$	13,756			$	14,083
Provision (credit) for credit losses - loans		(481	)			420				(540	)			(745	)			1,339
Provision (credit) for unfunded lending commitments		(51	)			32				35				(75	)			78
Credit for credit losses - securities		(1	)			(1	)			(1	)			(7	)			(86	)
Total provision (credit) for credit losses		(533	)			451				(506	)			(827	)			1,331
Net interest income after provision (credit) for credit losses		15,935				14,635				14,765				14,583				12,752
Noninterest income		2,941				3,340				2,242				5,253				2,042
Noninterest expense		12,240				11,366				11,486				12,574				10,400
Income before income taxes		6,636				6,609				5,521				7,262				4,394
Income tax expense		1,447				835				452				893				301
Net income	$	5,189			$	5,774			$	5,069			$	6,369			$	4,093
SBA Lending Segment (Q2):
Net interest income	$	1,728			$	1,639			$	1,732			$	1,706			$	994
Provision (credit) for credit losses - loans		864				(73	)			183				255				469
Provision (credit) for unfunded lending commitments		257				45				88				121				(340	)
Total provision (credit) for credit losses		1,121				(28	)			271				376				129
Net interest income after provision (credit) for credit losses		607				1,667				1,461				1,330				865
Noninterest income		1,718				1,180				1,318				850				800
Noninterest expense		2,388				2,327				2,212				2,369				2,242
Income (loss) before income taxes		(63	)			520				567				(189	)			(577	)
Income tax expense (benefit)		(145	)			128				137				(45	)			(156	)
Net income (loss)	$	82			$	392			$	430			$	(144	)		$	(421	)
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Segmented Statements of Income Information	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands, except percentage data)		2025				2025				2025				2024				2024
Net Income (Loss) Per Share by Segment
Net income per share, basic - Core Banking	$	0.75			$	0.84			$	0.74			$	0.93			$	0.60
Net income (loss) per share, basic - SBA Lending (Q2)		0.01				0.06				0.06				(0.02	)			(0.06	)
Total net income per share, basic	$	0.76			$	0.90			$	0.80			$	0.91			$	0.54
Net Income (Loss) Per Diluted Share by Segment
Net income per share, diluted - Core Banking	$	0.75			$	0.82			$	0.73			$	0.91			$	0.60
Net income (loss) per share, diluted - SBA Lending (Q2)		0.01				0.06				0.06				(0.02	)			(0.06	)
Total net income per share, diluted	$	0.76			$	0.88			$	0.79			$	0.89			$	0.53
Return on Average Assets by Segment (annualized)
Core Banking		0.90	%			1.01	%			0.90	%			1.09	%			0.71	%
SBA Lending		0.30	%			1.36	%			1.58	%			(0.55	%)			(1.71	%)
Efficiency Ratio by Segment (annualized)
Core Banking		66.73	%			61.68	%			69.61	%			66.15	%			64.50	%
SBA Lending		69.30	%			82.55	%			72.52	%			92.68	%			124.97	%
	Three Months Ended
Noninterest Expense Detail by Segment	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2025				2025				2025				2024				2024
Core Banking Segment:
Compensation	$	6,986			$	6,470			$	6,637			$	7,245			$	5,400
Occupancy		1,476				1,533				1,648				1,577				1,554
Advertising		479				437				429				338				399
Other		3,299				2,926				2,772				3,414				3,047
Total Noninterest Expense	$	12,240			$	11,366			$	11,486			$	12,574			$	10,400
SBA Lending Segment (Q2):
Compensation	$	1,853			$	1,914			$	1,892			$	1,931			$	1,854
Occupancy		53				92				50				59				55
Advertising		16				17				10				14				17
Other		466				304				260				365				316
Total Noninterest Expense	$	2,388			$	2,327			$	2,212			$	2,369			$	2,242
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
SBA Lending (Q2) Data	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands, except percentage data)		2025				2025				2025				2024				2024
Final funded loans guaranteed portion sold, SBA	$	25,948			$	18,019			$	15,716			$	10,785			$	10,880
Gross gain on sales of loans, SBA	$	2,443			$	1,548			$	1,508			$	1,141			$	1,029
Weighted average gross gain on sales of loans, SBA		9.41	%			8.59	%			9.60	%			10.58	%			9.46	%
Net gain on sales of loans, SBA (2)	$	1,500			$	932			$	1,078			$	711			$	647
Weighted average net gain on sales of loans, SBA		5.78	%			5.17	%			6.86	%			6.59	%			5.95	%
(2) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.
SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):	Three Months Ended
Summarized Consolidated Average Balance Sheets	September 30,				June 30,				March 31,				December 31,				September 30,
(In thousands)		2025				2025				2025				2024				2024
Interest-earning assets
Average balances:
Interest-bearing deposits with banks	$	14,385			$	15,889			$	11,851			$	21,102			$	16,841
Loans		1,978,946				1,992,567				1,946,338				2,010,082				1,988,997
Investment securities - taxable		107,698				104,169				102,744				101,960				99,834
Investment securities - nontaxable		162,070				162,017				161,579				160,929				158,917
FRB and FHLB stock		25,299				24,993				24,986				24,986				24,986
Total interest-earning assets	$	2,288,398			$	2,299,635			$	2,247,498			$	2,319,059			$	2,289,575
Interest income (tax equivalent basis):
Interest-bearing deposits with banks	$	175			$	145			$	168			$	210			$	209
Loans		29,263				29,214				27,998				29,617				29,450
Investment securities - taxable		1,000				947				921				914				910
Investment securities - nontaxable		1,732				1,733				1,719				1,715				1,685
FRB and FHLB stock		574				416				511				493				471
Total interest income (tax equivalent basis)	$	32,744			$	32,455			$	31,317			$	32,949			$	32,725
Weighted average yield (tax equivalent basis, annualized):
Interest-bearing deposits with banks		4.87	%			3.65	%			5.67	%			3.98	%			4.96	%
Loans		5.91	%			5.86	%			5.75	%			5.89	%			5.92	%
Investment securities - taxable		3.71	%			3.64	%			3.59	%			3.59	%			3.65	%
Investment securities - nontaxable		4.27	%			4.28	%			4.26	%			4.26	%			4.24	%
FRB and FHLB stock		9.08	%			6.66	%			8.18	%			7.89	%			7.54	%
Total interest-earning assets		5.72	%			5.65	%			5.57	%			5.68	%			5.72	%
Interest-bearing liabilities
Interest-bearing deposits	$	1,524,714			$	1,537,248			$	1,653,058			$	1,671,156			$	1,563,258
Federal Home Loan Bank borrowings		446,039				437,371				266,975				315,583				378,956
Subordinated debt and other borrowings		28,735				35,070				48,656				48,616				48,576
Total interest-bearing liabilities	$	1,999,488			$	2,009,689			$	1,968,689			$	2,035,355			$	1,990,790
Interest expense:
Interest-bearing deposits	$	10,504			$	10,601			$	12,069			$	13,606			$	12,825
Federal Home Loan Bank borrowings		4,291				4,149				2,001				2,617				3,521
Subordinated debt and other borrowings		365				489				762				764				800
Total interest expense	$	15,160			$	15,239			$	14,832			$	16,987			$	17,146
Weighted average cost (annualized):
Interest-bearing deposits		2.76	%			2.76	%			2.92	%			3.26	%			3.28	%
Federal Home Loan Bank borrowings		3.85	%			3.79	%			3.00	%			3.32	%			3.72	%
Subordinated debt and other borrowings		5.08	%			5.58	%			6.26	%			6.29	%			6.59	%
Total interest-bearing liabilities		3.03	%			3.03	%			3.01	%			3.34	%			3.45	%
Net interest income (taxable equivalent basis)	$	17,584			$	17,216			$	16,485			$	15,962			$	15,579
Less: taxable equivalent adjustment		(454	)			(491	)			(494	)			(500	)			(502	)
Net interest income	$	17,130			$	16,725			$	15,991			$	15,462			$	15,077
Interest rate spread (tax equivalent basis, annualized)		2.69	%			2.62	%			2.56	%			2.34	%			2.27	%
Net interest margin (tax equivalent basis, annualized)		3.07	%			2.99	%			2.93	%			2.75	%			2.72	%

FAQ

What were First Savings (FSFG) fiscal 2025 net income and EPS on October 29, 2025?

First Savings reported fiscal 2025 net income of $23.2 million and diluted EPS of $3.32.

How did First Savings (FSFG) net interest income change in fiscal 2025?

Net interest income increased 12.5% to $65.3 million for fiscal 2025.

What deposit and asset changes did FSFG report for year ended September 30, 2025?

Customer deposits rose $118.2 million, total deposits fell due to $289.2 million brokered outflows, and total assets decreased $50.8 million.

Did First Savings (FSFG) announce any merger activity in 2025?

Yes, FSFG announced an agreement to merge with First Merchants Corporation on September 25, 2025 with planned 2026 integration.

What drove the decline in FSFG's net loans held for investment in 2025?

Net loans held for investment decreased by $77.0 million, primarily due to an $87.2 million HELOC sale.

How did noninterest income and noninterest expense move for FSFG in fiscal 2025?

Noninterest income increased by $6.3 million, while noninterest expense rose by $4.1 million for fiscal 2025.