# EDGAR Filing Document

**Accession Number:** 0001435508
**File Stem:** 0001410578-25-001634
**Filing Date:** 2025-8
**Character Count:** 225433
**Document Hash:** 0c93d95d1367676ce2ddff5fe62578e0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001410578-25-001634.hdr.sgml**: 20250808

**ACCESSION NUMBER**: 0001410578-25-001634

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 90

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250808

**DATE AS OF CHANGE**: 20250808

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** First Savings Financial Group, Inc.
- **CENTRAL INDEX KEY:** 0001435508
- **STANDARD INDUSTRIAL CLASSIFICATION:** SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 371567871
- **STATE OF INCORPORATION:** IN
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34155
- **FILM NUMBER:** 251197408

**BUSINESS ADDRESS:**
- **STREET 1:** 702 NORTH SHORE DRIVE
- **STREET 2:** SUITE 300
- **CITY:** JEFFERSONVILLE
- **STATE:** IN
- **ZIP:** 47130
- **BUSINESS PHONE:** 812-283-0724

**MAIL ADDRESS:**
- **STREET 1:** 702 NORTH SHORE DRIVE
- **STREET 2:** SUITE 300
- **CITY:** JEFFERSONVILLE
- **STATE:** IN
- **ZIP:** 47130

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** First Savings Financial Group Inc
- **DATE OF NAME CHANGE:** 20080519

?xml version='1.0' encoding='ASCII'? First Savings Financial Group, Inc._June 30, 2025

[**Table of Contents**](#TOC)

------

**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 June 30, 2025

OR

**☐** **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Commission File No. 1-34155

**First Savings Financial Group, Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Indiana** | **37-1567871** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification Number) |

---

**702 North Shore Drive, Suite 300, Jeffersonville, Indiana 47130** 

(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code **1-812-283-0724**

(Former name, former address and former fiscal year, if changed since last report)

Securities Registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Common stock, $0.01 par value per share | FSFG | The NASDAQ Stock Market, LLC |
| (Title of each class) | (Trading Symbol) | (Name of each exchange on which registered) |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | |
|:---|:---|
| Large Accelerated Filer ☐ | Accelerated Filer ☒ |
| Non-accelerated Filer ☐ | Smaller Reporting Company ☒ |
| Emerging Growth Company ☐ |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares outstanding of the registrant's common stock as of August 2, 2025 was 6,976,558.

------

[**Table of Contents**](#TOC)

#### FIRST SAVINGS FINANCIAL GROUP, INC.

#### INDEX

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [**Part I**](#PARTIFINANCIALINFORMATION_495144) | [**Financial Information**](#PARTIFINANCIALINFORMATION_495144) |  |
|  | **Item 1. Financial Statements** |  |
|  | &nbsp;&nbsp;&nbsp;[Condensed Consolidated Balance Sheets as of June 30, 2025 (unaudited) and September 30, 2024](#CONSOLIDATEDBALANCESHEETS_935325) | 3 |
|  | &nbsp;&nbsp;&nbsp;[Condensed Consolidated Statements of Income for the three and nine months ended June 30, 2025 and 2024 (unaudited)](#CONSOLIDATEDSTATEMENTSOFINCOME_60017) | 4 |
|  | &nbsp;&nbsp;&nbsp;[Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended June 30, 2025 and 2024 (unaudited)](#CONDENSEDCONSOLIDATEDSTATEMENTSOFCOMPREH) | 5 |
|  | &nbsp;&nbsp;&nbsp;[Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended June 30, 2025 and 2024 (unaudited)](#CONSOLIDATEDSTATEMENTSOFCHANGESINSTOCKHO) | 6 |
|  | &nbsp;&nbsp;&nbsp;[Condensed Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024 (unaudited)](#CONSOLIDATEDSTATEMENTSOFCASHFLOWS_951803) | 7 |
|  | &nbsp;&nbsp;&nbsp;[Notes to Condensed Consolidated Financial Statements (unaudited)](#a1PresentationofInterimInformation_94213) | 8-49 |
|  | [**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations**](#SafeHarborStatementforForwardLookingStat) | 50-58 |
|  | [**Item 3. Quantitative and Qualitative Disclosures About Market Risk**](#QUANTITATIVEANDQUALITATIVE_845876) | 59-60 |
|  | [**Item 4. Controls and Procedures**](#PARTIITEM4_109123) | 61 |
| [**Part II**](#PARTII_153568) | [**Other Information**](#PARTII_153568) |  |
|  | [**Item 1. Legal Proceedings**](#Item1LegalProceedings_26840) | 62 |
|  | [**Item 1A. Risk Factors**](#Item1ARiskFactors_819192) | 62 |
|  | [**Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, And Issuer Purchases of Equity Securities**](#Item2UnregisteredSalesofEquitySecurities) | 63 |
|  | [**Item 3. Defaults Upon Senior Securities**](#Item3DefaultsuponSeniorSecurities_637772) | 63 |
|  | [**Item 4. Mine Safety Disclosures**](#Item4MineSafetyDisclosures_614113) | 63 |
|  | [**Item 5. Other Information**](#Item5OtherInformation_909165) | 63 |
|  | [**Item 6. Exhibits**](#Item6Exhibits_558544) | 64 |
| [**Signatures**](#SIGNATURES_528536) |  | 65 |

---

[**Table of Contents**](#TOC)

#### PART I - FINANCIAL INFORMATION

#### FIRST SAVINGS FINANCIAL GROUP, INC.

#### CONDENSED CONSOLIDATED BALANCE SHEETS
*(Unaudited)*

---

| | | |
|:---|:---|:---|
|  | **June 30,**  | **September 30,**  |
| *(In thousands, except share and per share data)* | **2025** | **2024** |
| **ASSETS** |  |  |
| &nbsp;&nbsp;Cash and due from banks | $18624 | $39393 |
| &nbsp;&nbsp;Interest-bearing deposits with banks | 33499 | 12749 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total cash and cash equivalents | 52123 | 52142 |
| &nbsp;&nbsp;Interest-bearing time deposits | 490 | 490 |
| &nbsp;&nbsp;Debt securities available for sale, at fair value, net of allowance for credit losses of $13 at June 30, 2025 and $21 at September 30, 2024 | 243411 | 248679 |
| &nbsp;&nbsp;Debt securities held to maturity | 873 | 1040 |
| &nbsp;&nbsp;Loans held for sale, residential mortgage | 337 |  |
| &nbsp;&nbsp;Loans held for sale, home equity lines of credit | 41792 |  |
| &nbsp;&nbsp;Loans held for sale, Small Business Administration | 18841 | 25716 |
| &nbsp;&nbsp;Loans, net of allowance for credit losses of $20,522 at June 30, 2025 and $21,294 at September 30, 2024 | 1895821 | 1963852 |
| &nbsp;&nbsp;Federal Reserve Bank and Federal Home Loan Bank stock, at cost | 25035 | 24986 |
| &nbsp;&nbsp;Premises and equipment, net | 25594 | 26462 |
| &nbsp;&nbsp;Other real estate owned, held for sale | 1113 | 647 |
| &nbsp;&nbsp;Accrued interest receivable: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loans | 9354 | 9447 |
| &nbsp;&nbsp;&nbsp;&nbsp;Securities | 2679 | 1929 |
| &nbsp;&nbsp;Cash surrender value of life insurance | 48272 | 47605 |
| &nbsp;&nbsp;Goodwill | 9848 | 9848 |
| &nbsp;&nbsp;Core deposit intangibles | 275 | 398 |
| &nbsp;&nbsp;Nonresidential mortgage loan servicing rights | 54 | 67 |
| &nbsp;&nbsp;SBA loan servicing rights | 2815 | 2687 |
| &nbsp;&nbsp;Other assets | 37948 | 34373 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Assets** | $2416675 | $2450368 |
| **LIABILITIES** |  |  |
| &nbsp;&nbsp;Deposits: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing | $202649 | $191528 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing | 1533545 | 1689353 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deposits | 1736194 | 1880881 |
| &nbsp;&nbsp;Federal Home Loan Bank borrowings | 434924 | 301640 |
| &nbsp;&nbsp;Other borrowings | 28722 | 48603 |
| &nbsp;&nbsp;Accrued interest payable | 7731 | 13384 |
| &nbsp;&nbsp;Advance payments by borrowers for taxes and insurance | 636 | 931 |
| &nbsp;&nbsp;Reserve for unfunded lending commitments | 1765 | 1519 |
| &nbsp;&nbsp;Accrued expenses and other liabilities | 22881 | 26295 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 2232853 | 2273253 |
| **STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;Preferred stock of $.01 par value per share; authorized 1,000,000 shares; none issued |  |  |
| &nbsp;&nbsp;Common stock of $.01 par value per share; authorized 20,000,000 shares; issued 7,900,798 shares (7,802,351 shares at September 30, 2024) outstanding 6,976,558 shares (6,887,106 shares at September 30, 2024) | 79 | 78 |
| &nbsp;&nbsp;Additional paid-in capital | 30011 | 27647 |
| &nbsp;&nbsp; Retained earnings  | 187969 | 173337 |
| &nbsp;&nbsp;Accumulated other comprehensive loss | (20061) | (11195) |
| &nbsp;&nbsp;Unearned stock compensation | (2005) | (901) |
| &nbsp;&nbsp;Treasury stock, at cost - 924,240 shares (915,245 shares at September 30, 2024) | (12171) | (11851) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | 183822 | 177115 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities and Stockholders' Equity** | $2416675 | $2450368 |

---

See notes to condensed consolidated financial statements.

[**Table of Contents**](#TOC)

#### PART I - FINANCIAL INFORMATION

#### FIRST SAVINGS FINANCIAL GROUP, INC.

#### CONDENSED CONSOLIDATED STATEMENTS OF INCOME
*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
| *(In thousands, except share and per share data)* | **2025** | **2024** | **2025** | **2024** |
| **INTEREST INCOME** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loans, including fees | $29088 | $28018 | $86430 | $81094 |
| &nbsp;&nbsp;&nbsp;Securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxable | 947 | 918 | 2782 | 2784 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax-exempt | 1369 | 1315 | 4082 | 3961 |
| &nbsp;&nbsp;&nbsp;Dividend income | 416 | 519 | 1420 | 1092 |
| &nbsp;&nbsp;&nbsp;Interest-bearing deposits with banks | 145 | 324 | 523 | 834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest income | 31965 | 31094 | 95237 | 89765 |
| **INTEREST EXPENSE** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Deposits | 10601 | 12740 | 36276 | 35276 |
| &nbsp;&nbsp;&nbsp;Federal Home Loan Bank borrowings | 4149 | 3021 | 8767 | 9088 |
| &nbsp;&nbsp;&nbsp;Other borrowings | 490 | 799 | 2016 | 2416 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest expense | 15240 | 16560 | 47059 | 46780 |
| &nbsp;&nbsp;&nbsp;Net interest income | 16725 | 14534 | 48178 | 42985 |
| &nbsp;&nbsp;&nbsp;Provision (credit) for credit losses - loans | 347 | 501 | (501) | 1684 |
| &nbsp;&nbsp;&nbsp;Provision (credit) for unfunded lending commitments | 77 | 158 | 246 | (159) |
| &nbsp;&nbsp;&nbsp;Provision (credit) for credit losses - securities | (1) | 84 | (8) | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total provision (credit) for credit losses | 423 | 743 | (263) | 1632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net interest income after provision (credit) for credit losses | 16302 | 13791 | 48441 | 41353 |
| **NONINTEREST INCOME** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Service charges on deposit accounts | 537 | 538 | 1645 | 1398 |
| &nbsp;&nbsp;&nbsp;ATM and interchange fees | 648 | 593 | 1945 | 1627 |
| &nbsp;&nbsp;&nbsp;Net unrealized gain on equity securities | 15 | 419 | 140 | 463 |
| &nbsp;&nbsp;&nbsp;Net gain on sale of equity securities |  |  | 403 |  |
| &nbsp;&nbsp;&nbsp;Net gain on sales of loans, Small Business Administration | 932 | 581 | 2721 | 2366 |
| &nbsp;&nbsp;&nbsp;Net gain on sales of loans, home equity lines of credit | 617 |  | 3109 |  |
| &nbsp;&nbsp;&nbsp;Mortgage banking income | 96 | 49 | 278 | 191 |
| &nbsp;&nbsp;&nbsp;Increase in cash surrender value of life insurance | 358 | 353 | 1099 | 1015 |
| &nbsp;&nbsp;&nbsp;Gain on life insurance | 147 |  | 255 |  |
| &nbsp;&nbsp;&nbsp;Commission income | 184 | 220 | 649 | 662 |
| &nbsp;&nbsp;&nbsp;Real estate lease income  | 132 | 154 | 375 | 384 |
| &nbsp;&nbsp;&nbsp;Net gain on premises and equipment |  |  | 45 | 120 |
| &nbsp;&nbsp;&nbsp;Other income | 854 | 289 | 1519 | 1462 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest income | 4520 | 3196 | 14183 | 9688 |
| **NONINTEREST EXPENSE** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Compensation and benefits | 8384 | 7480 | 26089 | 24732 |
| &nbsp;&nbsp;&nbsp;Occupancy and equipment | 1625 | 1624 | 4959 | 5338 |
| &nbsp;&nbsp;&nbsp;Data processing | 812 | 685 | 2419 | 1994 |
| &nbsp;&nbsp;&nbsp;Advertising | 454 | 265 | 1245 | 795 |
| &nbsp;&nbsp;&nbsp;Professional fees | 617 | 575 | 1743 | 2155 |
| &nbsp;&nbsp;&nbsp;FDIC insurance premiums | 445 | 601 | 1495 | 1715 |
| &nbsp;&nbsp;&nbsp;Net (gain) loss on other real estate owned | 2 | 2 | (242) | 10 |
| &nbsp;&nbsp;&nbsp;Other operating expenses | 1354 | 1199 | 4626 | 3509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total noninterest expense | 13693 | 12431 | 42334 | 40248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income before income taxes | 7129 | 4556 | 20290 | 10793 |
| &nbsp;&nbsp;&nbsp;Income tax expense  | 963 | 483 | 2400 | 873 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Income** | $6166 | $4073 | $17890 | $9920 |
| Net income per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | $0.90 | $0.60 | $2.60 | $1.45 |
| &nbsp;&nbsp;&nbsp;Diluted | $0.88 | $0.60 | $2.57 | $1.45 |
| Weighted average shares outstanding: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 6881077 | 6832452 | 6867734 | 6829490 |
| &nbsp;&nbsp;&nbsp;Diluted | 6977674 | 6834784 | 6967742 | 6851145 |
| Dividends per share | $0.16 | $0.15 | $0.47 | $0.44 |

---

See notes to consolidated financial statements.

[**Table of Contents**](#TOC)

#### PART I - FINANCIAL INFORMATION

#### FIRST SAVINGS FINANCIAL GROUP, INC.

#### CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
| *(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| **Net Income** | $6166 | $4073 | $17890 | $9920 |
| **OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX** |  |  |  |  |
| &nbsp;&nbsp;Unrealized gains (losses) on securities available for sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unrealized holding gains (losses) arising during the period | (854) | (393) | (11213) | 15333 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax (expense) benefit | 179 | 59 | 2354 | (3242) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net of tax amount | (675) | (334) | (8859) | 12091 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: reclassification adjustment for provision (credit) for credit losses on securities included in net income | (1) | 84 | (8) | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense |  | (21) | 1 | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net of tax amount | (1) | 63 | (7) | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Other Comprehensive Income (Loss)** | (676) | (271) | (8866) | 12172 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Comprehensive Income** | $5490 | $3802 | $9024 | $22092 |

---

See notes to consolidated financial statements.

[**Table of Contents**](#TOC)

#### PART I - FINANCIAL INFORMATION

#### FIRST SAVINGS FINANCIAL GROUP, INC.

#### CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
*(Unaudited)*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **Accumulated** |  |  |  |
|  |  |  |  | **Other** | **Unearned** |  |  |
|  | **Common** | **Additional** | **Retained** | **Comprehensive** | **Stock** | **Treasury** |  |
| *(In thousands, except share and per share data)* | **Stock** | **Paid-in Capital** | **Earnings** | **Income (Loss)** | **Compensation** | **Stock** | **Total** |
| **Three Months Ended June 30, 2024:** |  |  |  |  |  |  |  |
| Balances at April 1, 2024 | 78 | 27397 | 167648 | (17144) | (1096) | (11827) | 165056 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income  |  |  | 4073 |  |  |  | 4073 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  | (271) |  |  | (271) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock dividends - $0.15 per share |  |  | (1033) |  |  |  | (1033) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  | 78 |  |  | 97 |  | 175 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option exercises - 2,955 shares |  | 39 |  |  |  |  | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of 2,459 treasury shares |  |  |  |  |  | (39) | (39) |
| Balances at June 30, 2024 | $78 | $27514 | $170688 | $(17415) | $(999) | $(11866) | $168000 |
| **Three Months Ended June 30, 2025:** |  |  |  |  |  |  |  |
| Balances at April 1, 2025 | 78 | 28572 | 182918 | (19385) | (862) | (12132) | 179189 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  | 6166 |  |  |  | 6166 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  | (676) |  |  | (676) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock dividends - $0.16 per share |  |  | (1115) |  |  |  | (1115) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock grants - 55,895 shares | 1 | 1306 |  |  | (1307) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  | 92 |  |  | 164 |  | 256 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option exercises - 11,400 shares |  | 41 |  |  |  |  | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of 1,800 treasury shares |  |  |  |  |  | 23 | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of 1,437 treasury shares |  |  |  |  |  | (62) | (62) |
| Balances at June 30, 2025 | $79 | $30011 | $187969 | $(20061) | $(2005) | $(12171) | $183822 |
| **Nine Months Ended June 30, 2024:** |  |  |  |  |  |  |  |
| Balances at October 1, 2023 | $78 | $26986 | $166306 | $(29587) | $(1015) | $(11787) | $150981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect adjustment for adoption of ASU 2016-13, net of tax |  |  | (2510) |  |  |  | (2510) |
| Balances at October 1, 2023 | 78 | 26986 | 163796 | (29587) | (1015) | (11787) | 148471 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  | 9920 |  |  |  | 9920 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to Q2 minority interest |  | (18) |  |  |  |  | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income |  |  |  | 12172 |  |  | 12172 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock dividends - $0.44 per share |  |  | (3028) |  |  |  | (3028) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock grants - 19,475 shares |  | 294 |  |  | (294) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock forfeitures - 800 shares |  | (18) |  |  | 18 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  | 231 |  |  | 292 |  | 523 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option exercises - 2,955 shares |  | 39 |  |  |  |  | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of 5,095 treasury shares |  |  |  |  |  | (79) | (79) |
| Balances at June 30, 2024 | $78 | $27514 | $170688 | $(17415) | $(999) | $(11866) | $168000 |
| **Nine Months Ended June 30, 2025:** |  |  |  |  |  |  |  |
| Balances at October 1, 2024 | 78 | 27647 | 173337 | (11195) | (901) | (11851) | 177115 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income  |  |  | 17890 |  |  |  | 17890 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss |  |  |  | (8866) |  |  | (8866) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock dividends - $0.47 per share |  |  | (3258) |  |  |  | (3258) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted stock grants - 61,985 shares | 1 | 1483 |  |  | (1484) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense |  | 269 |  |  | 380 |  | 649 |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option exercises - 41,262 shares |  | 612 |  |  |  |  | 612 |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of 4,800 treasury shares |  |  |  |  |  | 62 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of 13,795 treasury shares |  |  |  |  |  | (382) | (382) |
| Balances at June 30, 2025 | $79 | $30011 | $187969 | $(20061) | $(2005) | $(12171) | $183822 |

---

See notes to consolidated financial statements.

[**Table of Contents**](#TOC)

#### PART I - FINANCIAL INFORMATION

#### FIRST SAVINGS FINANCIAL GROUP, INC.

#### CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
*(Unaudited)*

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  |
| *(In thousands)* | **2025** | **2024** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $17890 | $9920 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by (used in)  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for credit losses - loans | (501) | 1684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for unfunded lending commitments | 246 | (159) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (credit) for credit losses - securities | (8) | 107 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1744 | 1791 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of premiums and accretion of discounts on securities, net | 247 | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization and accretion of fair value adjustments on loans, net | (772) | (915) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans originated for sale, residential mortgage | (4622) | (62577) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans originated for sale, home equity lines of credit  | (63696) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loans originated for sale, Small Business Administration | (36645) | (28677) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds on sales of loans, residential mortgage | 4354 | 82350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds on sales of loans, home equity lines of credit  | 22522 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds on sales of loans, Small Business Administration | 46165 | 38496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (gain) loss on sale of residential mortgage loans | (228) | 1307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain on sale of home equity lines of credit  | (3109) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain on sale of SBA loans | (2721) | (2366) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalization of loan servicing rights | (829) | (1199) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of residential mortgage loan servicing rights |  | 59464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of residential mortgage loan servicing rights |  | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in value of residential loan servicing rights |  | 809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization and direct write offs of SBA and nonresidential mortgage loan servicing rights | 714 | 881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized and unrealized gain on other real estate owned | (248) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in cash surrender value of life insurance  | (1099) | (1015) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on life insurance | (255) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on equity securities | (543) | (463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (525) | (15618) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense | 649 | 523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain on sale of premises and equipment  | (45) | (120) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase) in accrued interest receivable | (657) | (1853) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) increase in accrued interest payable | (5653) | (44) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other assets | (4220) | 1656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other liabilities | 5690 | 5786 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by (Used in) Operating Activities** | (26155) | 89979 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Purchase of securities available for sale | (14234) | (817) |
| &nbsp;&nbsp;&nbsp;Principal collected and proceeds from maturities of securities available for sale | 8041 | 6005 |
| &nbsp;&nbsp;&nbsp;Principal collected and proceeds from maturities of securities held to maturity | 167 | 166 |
| &nbsp;&nbsp;&nbsp;Net increase in loans  | (18594) | (167576) |
| &nbsp;&nbsp;&nbsp;Proceeds from redemption of Federal Reserve Bank and Federal Home Loan Bank stock |  | 1 |
| &nbsp;&nbsp;&nbsp;Purchase of Federal Reserve Bank and Federal Home Loan Bank stock | (49) | (48) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of home equity lines of credit | 89721 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of premises and equipment | 69 | 150 |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of other real estate | 451 | 35 |
| &nbsp;&nbsp;&nbsp;Purchase of premises and equipment | (658) | (433) |
| &nbsp;&nbsp;&nbsp;Proceeds from life insurance | 687 |  |
| &nbsp;&nbsp;&nbsp;Investment in partnership interests | (4801) | (4534) |
| &nbsp;&nbsp;&nbsp;Distribution to Q2 minority interests |  | (18) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by (Used In) Investing Activities** | 60800 | (167069) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in deposits | (144687) | 30354 |
| &nbsp;&nbsp;&nbsp;Net increase (decrease) in Federal Home Loan Bank line of credit | 8284 | (8183) |
| &nbsp;&nbsp;&nbsp;Proceeds from Federal Home Loan Bank advances | 1140000 | 1800000 |
| &nbsp;&nbsp;&nbsp;Repayment of Federal Home Loan Bank advances | (1015000) | (1730000) |
| &nbsp;&nbsp;&nbsp;Repayment of subordinated debt | (20000) |  |
| &nbsp;&nbsp;&nbsp;Net decrease in advance payments by borrowers for taxes and insurance | (295) | (435) |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 612 | 39 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 62 |  |
| &nbsp;&nbsp;&nbsp;Purchase of treasury shares | (382) | (79) |
| &nbsp;&nbsp;&nbsp;Dividends paid on common stock | (3258) | (3028) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net Cash Provided by (Used In) Financing Activities** | (34664) | 88668 |
| **Net Increase (Decrease) in Cash and Cash Equivalents** | (19) | 11578 |
| Cash and cash equivalents at beginning of period | 52142 | 30845 |
| **Cash and Cash Equivalents at End of Period** | $52123 | $42423 |
| **Supplemental Disclosures of Cash Flow Information:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash payments for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | 52712 | 46824 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes (net of refunds received) | 2874 | 6915 |
| &nbsp;&nbsp;&nbsp;Loans transferred from held for investment to held for sale | 87229 | 108795 |
| &nbsp;&nbsp;&nbsp;Loans transferred to other real estate owned | 669 |  |

---

See notes to consolidated financial statements.

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**FIRST SAVINGS FINANCIAL GROUP, INC.**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

*(Unaudited)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Presentation of Interim Information** 

First Savings Financial Group, Inc. (the "Company") is a financial holding company and the parent of First Savings Bank (the "Bank").

The Bank, which is a wholly-owned Indiana-chartered commercial bank subsidiary of the Company, provides a variety of banking services to individuals and business customers through 16 locations in southern Indiana. The Bank attracts deposits primarily from the general public and uses those funds, along with other borrowings, primarily to originate commercial mortgage, residential mortgage, construction, commercial business and consumer loans, and to a lesser extent, to invest in mortgage-backed securities, municipal bonds and other investment securities. The Bank has three wholly-owned subsidiaries: Q2 Business Capital, LLC("Q2"), an Indiana limited liability company that specializes in the origination and servicing of U.S. Small Business Administration ("SBA") loans, First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio, and Southern Indiana Financial Corporation, which is currently inactive.

During the three -month period ended December 31, 2023, the Bank ceased its national originate-to-sell mortgage banking operation. The Bank continues to originate residential mortgage loans in its local southern Indiana market and first-lien home equity lines of credit from its loan production office in Franklin, Tennessee.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments considered necessary to present fairly the financial position as of June 30, 2025, the results of operations for the three - and nine-month periods ended June 30, 2025 and 2024, and the cash flows for the nine-month periods ended June 30, 2025 and 2024. All of these adjustments are of a normal, recurring nature. Such adjustments are the only adjustments included in the unaudited condensed consolidated financial statements. Interim results are not necessarily indicative of results for a full year.

The unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements, conform to general practices within the banking industry and are presented as permitted by the instructions to Form 10-Q. Accordingly, they do not contain certain information included in the Company's audited consolidated financial statements and related notes for the year ended September 30, 2024 included in the Company's Annual Report on Form 10-K.

The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany balances and transactions have been eliminated in consolidation.

**Loans and Allowance for Credit Losses**

*Loans Held for Investment*

Loans are stated at unpaid principal balances, less net deferred loan fees and the allowance for credit losses. Loan origination and commitment fees, as well as certain direct costs of underwriting and closing loans, are deferred and amortized as a yield adjustment to interest income over the lives of the related loans using the interest method. Amortization of deferred loan fees is discontinued when a loan is placed on nonaccrual status.

*Nonaccrual Loans*

The recognition of income on a loan is discontinued and previously accrued interest is reversed when interest or principal payments become 90 days past due unless, in the opinion of management, the outstanding interest remains collectible and the loan is well secured and in process of collection. Past due status is determined based on contractual terms. Generally, by applying the cash receipts method, interest income on nonaccrual loans is subsequently recognized only as received until the loan is returned to accrual status. The cash receipts method is used when the likelihood of further loss on the loan is remote. Otherwise, the Company applies the cost recovery method and applies all payments as a reduction of the unpaid principal balance until the loan qualifies for return to accrual status.

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#### FIRST SAVINGS FINANCIAL GROUP, INC.
**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

A loan is restored to accrual status when all principal and interest payments are brought current and the borrower has demonstrated the ability to make future payments of principal and interest as scheduled, which generally requires that the borrower demonstrate a period of performance of at least six consecutive months.

*Loan Charge-Offs*

For portfolio segments other than consumer loans, the Company's practice is to charge-off any loan or portion of a loan when the loan is determined by management to be uncollectible due to the borrower's failure to meet repayment terms, the borrower's deteriorating or deteriorated financial condition, depreciation of the underlying collateral or for other reasons. A partial charge-off is recorded on a loan when the uncollectibility of a portion of the loan has been confirmed, such as when a loan is discharged in bankruptcy, the collateral is liquidated, a loan is restructured at a reduced principal balance, or other identifiable events that lead management to determine the full principal balance of the loan will not likely be repaid. A specific reserve is recognized as a component of the allowance for estimated losses on loans individually evaluated for impairment.

Consumer loans not secured by real estate are typically charged off at 90 days past due, or earlier if deemed uncollectible, unless the loans are in the process of collection. Overdrafts are charged off after 45 days past due. Charge-offs are typically recorded on loans secured by real estate when the property is foreclosed upon when the carrying value of the loan exceeds the property's fair value, less estimated costs to sell.

*Allowance for Credit Losses – Loans*

The allowance for credit losses (ACL) is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. The ACL is increased by provision expense and decreased by charge-offs, net of recoveries of amounts previously charged off.

The Company follows its nonaccrual policy by reversing contractual interest income in the income statement when the Company places a loan on nonaccrual status. Therefore, management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on the portfolio and does not record an allowance for credit losses on accrued interest receivable.

Management considers forward-looking information in estimating expected credit losses. For the contractual term that extends beyond the reasonable and supportable forecast period, the Company reverts to the long term average of historical factors using a four-quarter forecast with immediate reversion to historical losses.

Management estimates the ACL balance using relevant available information from both internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience paired with economic forecasts provides the basis for the quantitatively modeled estimates of expected credit losses. The Company adjusts its quantitative model, as necessary, to reflect conditions not already considered by the quantitative model. The adjustments are commonly known as the Qualitative Framework. The ACL model for each segment is adjusted for (1) changes in the Company's lending policy, (2) changes in international, national, regional and local economic conditions, (3) changes in the nature and volume of the portfolio and terms of loans, (4) changes in the experience, depth and ability of lending management, (5) changes in the volume and severity of past due loans and other similar conditions, (6) changes in the quality of the Company's loan review system, (7) changes in the value of underlying collateral, (8) the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and (9) the effect of other external factors such as competition, legal and regulatory requirements.

The ACL is measured on a collective (pool) basis when similar risk characteristics exist utilizing a weighted average remaining maturity loss methodology.The ACL utilizes historical charge off rates that were internally calculated as well as peer charge off data. In many cases, the peer data, which showed higher loss rates, was utilized due to representing a better approximation of management's estimate of the expected losses on the loan segments.

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

For loans evaluated on a pool basis, the Company applies an average historical loss rate to the pool over its estimated remaining life assuming a constant attrition rate.

Loans that do not share risk characteristics are evaluated on an individual basis. The Company maintains a net book balance threshold of $500,000 for individually evaluated loans unless further analysis in the future suggests a change is needed to this threshold based on the credit environment at that time. For collateral dependent financial assets where the Company has determined that foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the financial asset to be provided substantially through the operation or sale of the collateral, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the asset as of the measurement date. When repayment is expected to be from the operation of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the present value of expected cash flows from the operation of the collateral. When repayment is expected to be from the sale of the collateral, expected credit losses are calculated as the amount by which the amortized cost basis of the financial asset exceeds the fair value of the underlying collateral, less estimated cost to sell. The allowance for credit losses may be zero if the fair value of the collateral at the measurement date exceeds the amortized cost basis of the financial asset. If the loan is not collateral dependent, the measurement of loss is based on the difference between the expected and contractual future cash flows of the loan.

Management measures expected credit losses over the contractual term of a loan. When determining the contractual term, the Company considers expected prepayments but is precluded from considering expected extensions, renewals or modifications, unless the Company reasonably expects it will execute a loan modification with a borrower. In the event of a reasonably expected loan modification, the Company factors the reasonably-expected loan modification into the current expected credit losses estimate.

The Company has identified the following portfolio segments and measures and adjusts the ACL using the following methods:

*Residential real estate* – Residential real estate loans represent loans to consumers for the financing of a residence. Our residential lending policies and procedures conform to the secondary market guidelines, utilizing underwriting processes that rely on empirical data to assess credit risk as well as analysis of the borrower's ability to repay their obligations, credit history, the amount of any down payment and the market value or other characteristics of the property. We generally offer a mix of adjustable-rate mortgage loans and fixed-rate mortgage loans with terms of 10 to 30 years.

The residential real estate ACL model is adjusted for forecasted changes in the housing price indices at both the national and local level, the Case-Schiller Home Price Index, the national unemployment rate, Consumer Price Index ("CPI") and Real Gross Domestic Product ("Real GDP").

*Commercial real estate, single tenant net lease and multifamily* – The Company offers fixed and adjustable-rate mortgage loans secured by commercial real estate. Our commercial real estate loans are generally secured by small to moderately-sized office, retail and industrial properties located in our primary market area and are typically made to small business owners and professionals such as attorneys and accountants. We originate fixed-rate commercial real estate loans, generally with terms up to five years and payments based on an amortization schedule of 15 to 20 years, resulting in "balloon" balances at maturity.

The Company offers multi-family mortgage loans that are generally secured by properties in our primary market area. Multi-family loans are secured by first mortgages and generally are originated with a maximum loan-to-value ratio of 80% and generally require specified debt service coverage ratios depending on the characteristics of the project.

The Company offers single tenant net lease loans, which are derived from a commercial real estate lending program that is focused on loans to high net worth individuals and that are secured by low loan-to-value, single-tenant commercial properties that are generally leased to investment grade national-brand retailers, the borrowers and collateral properties for which are outside of our primary market area ("NNN Finance Program"). This program is designed to diversify the Company's geographic and credit risk profile given the geographic dispersion of the loans and collateral, and the investment grade credit of the national-brand lessees. The terms of the loans are generally consistent with the aforementioned terms of in-market

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

commercial real estate loans; however, these cannot exceed 70% loan-to-value and loan maturities cannot exceed the expiration of the underlying leases.

The commercial real estate, single tenant net lease and multi-family ACL models are adjusted for changes in the Commercial Real Estate Price Index, which is a time series of commercial property values prepared by the Board of Governors of the Federal Reserve System, and the national unemployment rate, CPI and Real GDP.

*SBA commercial real estate and SBA commercial business* – The Company originates SBA commercial real estate loans and SBA commercial business loans under the SBA 7(a) program. Guaranteed portions are generally sold in the secondary market.

The SBA commercial real estate ACL model is adjusted for the Commercial Real Estate Price Index. Both the SBA commercial real estate ACL model and the SBA commercial business model are adjusted for the national unemployment rate, CPI and Real GDP.

*Residential and commercial construction* – The Company originates construction loans for one to four family homes and commercial properties such as small industrial buildings, warehouses, retail shops and office units. Construction loans, including speculative construction loans to builders who have not identified a buyer or lessee for the completed property at the time of origination, are made to a limited group of well-established builders in our primary market area and we limit the number of projects with each builder. Construction loans are typically for a term of 12 months with monthly interest only payments and interest rates on these loans are generally tied to the prime lending rate.

The construction ACL model is adjusted for forecasted changes in the housing price indices, the Case-Schiller Home Price Index, the national unemployment rate, CPI and Real GDP.

*Land and land development* – On a limited basis, we originate loans to developers for the purpose of developing vacant land in our primary market area, typically for residential subdivisions. Land development loans are generally interest-only loans for a term of 18 to 24 months. We generally require a maximum loan-to-value ratio of 75% of the appraisal market value upon completion of the project.

The land and land development ACL model is adjusted for forecasted changes in the housing price indices, the Case-Schiller Home Price Index, the national unemployment rate, CPI and Real GDP.

*Commercial business* – The Company typically offer commercial business loans to small businesses located in our primary market area. Commercial business loans are generally secured by equipment and general business assets. Key loan terms and covenants vary depending on the collateral, the borrower's financial condition, credit history and other relevant factors, and personal guarantees are typically required as part of the loan commitment.

The commercial business ACL model is adjusted for changes in the national unemployment level, CPI and Real GDP.

*Consumer* – The Company offers a variety of consumer loans. The consumer loan portfolio consists primarily of home equity loans, both fixed rate amortizing term loans with terms up to 15 years and adjustable rate lines of credit with interest rates equal to a margin above the prime lending rate. We also offer auto and truck loans, personal loans and small boat loans. Consumer loans typically have shorter maturities and higher interest rates than traditional one-to four-family lending. We typically do not make home equity loans with loan-to-value ratios exceeding 90%, including any first mortgage loan balance.

The ACL model for consumer loans is adjusted for forecasted changes in the housing price indices, the Case-Schiller Home Price Index, the national unemployment rate, CPI and Real GDP.

*Allowance for Credit Losses – Unfunded Commitments*

The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit. The estimate includes consideration of the likelihood that funding will occur and an

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

estimate of expected credit losses on commitments expected to be funded over their estimated lives consistent with the Company's ACL methodology for loans.

*Collateral Dependent Loans*

Loans on nonaccrual status which management believes the likely source of repayment to be operation or sale of the collateral are considered collateral dependent. Factors considered by management in determining collateral dependency include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Individually evaluated loans are measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Values for collateral dependent loans are generally based on appraisals obtained from independent licensed real estate appraisers, with adjustments applied for estimated costs to sell the property, estimated costs to complete unfinished or repair damaged property, and other known defects. New appraisals are generally obtained for all significant properties when a loan is identified as collateral dependent. Generally, a property is considered significant if the value of the property is estimated to exceed $250,000. Subsequent appraisals are obtained as needed or if management believes there has been a significant change in the market value of a collateral property securing a collateral dependent loan. In instances where it is not deemed necessary to obtain a new appraisal, management would base its allowance for credit loss on the original appraisal with adjustments for current conditions based on management's assessment of market factors and management's inspection of the property.

*Financial Difficulty Modifications*

Financial difficulty modifications (FDMs) may result when a borrower is in financial distress, and may be in the form of principal forgiveness, an interest rate reduction, a term extension a payment delay that is other-than-insignificant or any combination thereof. The Company's credit department evaluates modifications and identifies any FDMs on a quarterly basis.

*Allowance for Credit Losses – Held to Maturity (HTM) Securities*

The Company measures expected credit losses on HTM securities on a collective basis by major security type with each type sharing similar risk characteristics. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The Company has made the election to exclude accrued interest receivable on HTM securities from the estimate of credit losses and report accrued interest separately on the condensed consolidated balance sheets. See Note 2 – Investment Securities, for additional information related the Company's allowance for credit losses on HTM securities.

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

*Allowance for Credit Losses – Available for Sale (AFS) Securities*

For AFS securities in an unrealized loss position, the Company first evaluates whether it intends to sell, or whether it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis, which may be at maturity. If either of these criteria regarding intent or requirement to sell is met, the AFS security amortized cost basis is written down to fair value through income. If the criteria is not met, the Company is required to assess whether the decline in fair value has resulted from credit related factors. If the assessment indicates a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists, and an allowance for credit loss is recorded through income as a component of provision for credit loss expense. If the assessment indicates that a credit loss does not exist, the Company records the decline in fair value through other comprehensive income, net of related income tax effects. The Company has made the election to exclude accrued interest receivable on AFS securities from the estimate of credit losses and report accrued interest separately on the condensed consolidated balance sheets. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. See Note 2 – Investment Securities, for additional information related to the Company's allowance for credit losses on AFS securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Investment Securities** 

U.S. agency bonds and notes, agency mortgage-backed securities and agency collateralized mortgage obligations ("CMO") include treasury notes issued by the U.S. government; securities issued by the Government National Mortgage Association ("GNMA"), a U.S. government agency; and securities issued by the Federal National Mortgage Association ("FNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC") and the Federal Home Loan Bank ("FHLB"), which are U.S. government sponsored enterprises. The Company holds municipal bonds issued by municipal governments within the U.S. The Company also holds pass-through asset-backed securities guaranteed by the SBA representing participating interests in pools of long term debentures issued by state and local development companies certified by the SBA. Privately issued CMO and asset-backed securities ("ABS") are complex securities issued by non-government special purpose entities that are collateralized by residential mortgage loans and residential home equity loans. The Company also holds subordinated debt of a regional financial institution.

Investment securities have been classified as either available for sale or held to maturity according to management's intent.

At this time, the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, debt securities in an unrealized loss position prior to maturity or recovery of the recorded value. The Company recorded a $1,000 and $8,000 credit for credit losses on investment securities for the three - and nine-month periods ended June 30, 2025, respectively. The Company recorded $84,000 and $107,000 of provision for credit losses on investment securities for the three - and nine-month periods ended June 30, 2024.

The Company's held to maturity ("HTM") debt securities consist of two agency mortgage-backed securities and two municipal bonds. The agency mortgage-backed securities carry an explicit and/or implicit guarantee of the U.S. government, are widely considered as "risk free" and have a long history of zero credit loss. The two HTM municipal bonds are unrated, but have performed as agreed and are not considered to be credit impaired. There were no HTM securities on nonaccrual status or past due as of June 30, 2025 or September 30, 2024. Therefore, the Company did not record an allowance for credit losses for these securities as of June 30, 2025 or September 30, 2024.

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

*Debt Securities Available for Sale and Held to Maturity*

The following tables provide a summary of debt securities available for sale and held to maturity:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Amortized**<br>**Cost** | **Gross**<br>**Unrealized**<br>**Gain** | **Gross**<br>**Unrealized**<br>**Losses** | **Allowance**<br>**for Credit**<br>**Losses** | <br>**Fair**<br>**Value** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| **June 30, 2025:** |  |  |  |  |  |
| &nbsp;&nbsp;Debt securities available for sale: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury notes | $29170 | $— | $2818 | $— | $26352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed | 26757 | 3 | 2909 |  | 23851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO | 25208 | 101 | 787 |  | 24522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued CMO | 208 | 2 | 2 | 13 | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued ABS | 230 | 9 |  |  | 239 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA certificates | 10818 |  | 26 |  | 10792 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 174431 | 70 | 18941 |  | 155560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 2000 |  | 100 |  | 1900 |
| &nbsp;&nbsp;Total debt securities available for sale | $268822 | $185 | $25583 | $13 | $243411 |
| &nbsp;&nbsp;Debt securities held to maturity: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed | $25 | $— | $— | $— | $25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 848 | 4 |  |  | 852 |
| &nbsp;&nbsp;Total debt securities held to maturity | $873 | $4 | $— | $— | $877 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**Amortized**<br>**Cost** | **Gross**<br>**Unrealized**<br>**Gain** | **Gross**<br>**Unrealized**<br>**Losses** | **Allowance**<br>**for Credit**<br>**Losses** | <br>**Fair**<br>**Value** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |  |
| **September 30, 2024:** |  |  |  |  |  |
| &nbsp;&nbsp;Debt securities available for sale: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury notes | $30031 | $— | $2620 | $— | $27411 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed | 28425 | 8 | 2157 |  | 26276 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO | 15700 |  | 774 |  | 14926 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued CMO | 295 | 2 | 16 | 21 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued ABS | 301 | 12 |  |  | 313 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA certificates | 11993 |  | 67 |  | 11926 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 174132 | 1048 | 9493 |  | 165687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 2000 |  | 120 |  | 1880 |
| &nbsp;&nbsp;Total debt securities available for sale | $262877 | $1070 | $15247 | $21 | $248679 |
| &nbsp;&nbsp;Debt securities held to maturity: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed | $29 | $— | $— | $— | $29 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 1011 | 12 |  |  | 1023 |
| &nbsp;&nbsp;Total debt securities held to maturity | $1040 | $12 | $— | $— | $1052 |

---

The amortized cost and fair value of investment securities as of June 30, 2025 by contractual maturity are shown below. CMO, ABS, SBA certificates, and mortgage-backed securities which do not have a single maturity date are shown separately.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Available for Sale** | **Available for Sale** | **Held to Maturity** | **Held to Maturity** |
|  | **Amortized**<br>**Cost** | **Fair**<br>**Value** | **Amortized**<br>**Cost** | **Fair**<br>**Value** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Due within one year | $1040 | $1049 | $189 | $189 |
| Due after one year through five years | 8430 | 8351 | 518 | 521 |
| Due after five years through ten years  | 43902 | 40569 | 141 | 142 |
| Due after ten years | 152229 | 133843 |  |  |
| Agency mortgage-backed | 26757 | 23851 | 25 | 25 |
| Agency CMO | 25208 | 24522 |  |  |
| Privately-issued CMO | 208 | 195 |  |  |
| Privately-issued ABS | 230 | 239 |  |  |
| SBA certificates | 10818 | 10792 |  |  |
|  | $268822 | $243411 | $873 | $877 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The following tables provide the fair value and gross unrealized losses on investment securities in an unrealized loss position for which an allowance for credit losses has not been recorded, aggregated by investment category and the length of time the individual securities have been in a continuous loss position:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of**<br>**Investment**<br>**Positions** | <br>**Fair**<br>**Value** | **Gross**<br>**Unrealized**<br>**Losses** |
|  | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* |
| **June 30, 2025:** |  |  |  |
| &nbsp;&nbsp;Debt securities available for sale: |  |  |  |
| Continuous loss position less than twelve months: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed  | 5 | $2008 | $63 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO | 3 | 5666 | 25 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 54 | 50996 | 2164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total less than twelve months | 62 | 58670 | 2252 |
| Continuous loss position more than twelve months: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury notes | 3 | 26352 | 2818 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed | 20 | 21640 | 2846 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO | 15 | 11637 | 762 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued CMO | 1 | 176 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued ABS | 1 | 64 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA certificates | 3 | 9794 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 100 | 91096 | 16777 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1 | 1900 | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total more than twelve months | 144 | 162659 | 23331 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities available for sale | 206 | $221329 | $25583 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

At June 30, 2025, the Company did not have any securities held to maturity with an unrealized loss.

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of**<br>**Investment**<br>**Positions** | <br>**Fair**<br>**Value** | **Gross**<br>**Unrealized**<br>**Losses** |
|  | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* |
| **September 30, 2024:** |  |  |  |
| &nbsp;&nbsp;Debt securities available for sale: |  |  |  |
| Continuous loss position less than twelve months: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO | 1 | $2641 | $15 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA certificates | 1 | 998 | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 3 | 2285 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total less than twelve months | 5 | 5924 | 27 |
| Continuous loss position more than twelve months: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury notes | 6 | 27411 | 2620 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed | 20 | 23941 | 2157 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO | 15 | 12285 | 759 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued CMO | 3 | 241 | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued ABS | 1 | 117 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA certificates | 3 | 10928 | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds | 100 | 98794 | 9483 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other | 1 | 1880 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total more than twelve months | 149 | 175597 | 15220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total debt securities available for sale | 154 | $181521 | $15247 |

---

At September 30, 2024, the Company did not have any securities held to maturity with an unrealized loss.

All debt securities available for sale with unrealized losses are reviewed quarterly. For debt securities available for sale in an unrealized loss position, the Company first assesses whether it intends to sell or it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis, which may be at maturity. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is written down to fair value through the income statement. For debt securities available for sale in an unrealized loss position that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit deterioration or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis.

The total debt securities available for sale in loss positions at June 30, 2025, which consisted of U.S. Treasury notes, agency mortgage-backed securities, agency CMOs, privately-issued CMOs, municipal bonds, SBA certificates and other securities represented 91% of total debt securities available for sale at June 30, 2025. All of the municipal securities are issued by municipal governments and are generally secured by first mortgage loans and municipal project revenues.

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The Company evaluates the existence of a potential credit loss component related to the decline in fair value of the privately issued CMO and ABS portfolios each quarter using an independent third party analysis. At June 30, 2025, the Company held three privately-issued CMO and ABS securities, acquired in a 2009 bank merger, with an aggregate amortized cost and fair value of $253,000 that have been downgraded to a substandard regulatory classification due to the securities credit quality rating by various rating agencies.

At June 30, 2025, one privately-issued CMO security and one privately-issued ABS were in a loss position, and had depreciated approximately 0.8% from the Company's carrying value and were collateralized by residential mortgage loans. These securities had a total fair value of $239,000 and a total unrealized loss of $2,000 at June 30, 2025. A total of two securities had credit losses totaling $13,000 as of June 30, 2025. While the Company does not anticipate additional credit-related losses at June 30, 2025, additional deterioration in market and economic conditions may have an adverse impact on the credit quality of the portfolio, and therefore, require a credit related charge in the future.

The unrealized losses on U.S. Treasury bills and notes, agency mortgage-backed securities, agency CMOs, SBA certificates and municipal bonds relate principally to changes in current interest rates for similar types of securities. In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer's financial condition. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of its amortized cost bases, which may be at maturity, the Company has not recorded an allowance for credit losses at June 30, 2025.

During the three - and nine-month periods ended June 30, 2025 and 2024, there were no sales of debt securities available for sale.

At June 30, 2025 and September 30, 2024, available for sale debt securities with a total fair value of $51.4 million and $54.2 million, respectively, were pledged to secure FHLB borrowings. At June 30, 2025 and September 30, 2024, available for sale debt securities with a total fair value of $57.8 million and $62.8 million, respectively, were pledged to secure Federal Reserve Discount Window borrowings.

The following tables provide information about the activity for available for sale debt securities for which an allowance for credit losses was recorded, by major security type for the three - and nine-month periods ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Allowance for Credit Losses** | **Allowance for Credit Losses** |
|  | **Private Label CMO** | **Private Label CMO** | **Private Label CMO** | **Private Label CMO** |
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Allowance for credit losses |  |  |  |  |
| Beginning of period | $14 | $23 | $21 | $— |
| Provision for credit loss expense |  |  |  | 24 |
| Reductions due to increases in expected |  |  |  |  |
| cash flows | (1) |  | (8) | (1) |
| Recoveries |  |  |  |  |
| Balance, end of period | $13 | $23 | $13 | $23 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Other Investments** | **Other Investments** | **Other Investments** | **Other Investments** |
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Allowance for credit losses |  |  |  |  |
| Beginning of period | $— | $— | $— | $— |
| Provision for credit loss expense |  | 84 |  | 84 |
| Reductions due to increases in expected |  |  |  |  |
| cash flows |  |  |  |  |
| Recoveries |  |  |  |  |
| Balance, end of period | $— | $84 | $— | $84 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Loans and Allowance for Credit Losses** 

Loans at June 30, 2025 and September 30, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br>**2025** | **September 30,** <br>**2024** |
|  | *(In thousands)* | *(In thousands)* |
| Real estate mortgage: |  |  |
| &nbsp;&nbsp;Residential | $611693 | $670011 |
| &nbsp;&nbsp;Commercial | 202446 | 204847 |
| &nbsp;&nbsp;Single tenant net lease | 756645 | 750642 |
| &nbsp;&nbsp;SBA commercial (1) | 61360 | 55557 |
| &nbsp;&nbsp;Multifamily | 34396 | 37763 |
| &nbsp;&nbsp;Residential construction | 40248 | 53237 |
| &nbsp;&nbsp;Commercial construction | 7850 | 9172 |
| &nbsp;&nbsp;Land and land development | 17539 | 17678 |
| Commercial business | 125352 | 124639 |
| SBA commercial business (1) | 17943 | 18342 |
| Consumer | 39970 | 42213 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total loans | 1915442 | 1984101 |
| &nbsp;&nbsp;Deferred loan origination fees and costs, net  | 901 | 1045 |
| &nbsp;&nbsp;Allowance for credit losses | (20522) | (21294) |
| &nbsp;&nbsp;Loans, net | $1895821 | $1963852 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes discounts on SBA loans of $4.5 million and $3.2 million for June 30, 2025 and September 30, 2024, respectively.

During the three - and nine-month periods ended June 30, 2025, there were no significant changes in the Company's lending activities as disclosed in the Company's Annual Report on Form 10-K, for the fiscal year ended September 30, 2024.

At June 30, 2025 and September 30, 2024, the recorded investment in consumer mortgage loans collateralized by residential real estate properties in the process of foreclosure was $3.2 million and $853,000, respectively.

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2025 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | | | | | |
|  |  | **Beginning** <br>**Balance** | **Provisions** <br>**(Credits)** | <br>**Charge-Offs** | <br>**Recoveries** | **Ending** <br>**Balance** |
|  |  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| **June 30, 2025:** |  |  |  |  |  |  |
| Residential real estate |  | $6921 | $551 | $(39) | $3 | $7436 |
| Commercial real estate |  | 1717 | 121 |  |  | 1838 |
| Single tenant net lease |  | 3454 | (190) |  |  | 3264 |
| SBA commercial real estate |  | 3696 | (50) | (179) | 9 | 3476 |
| Multifamily |  | 266 | (24) |  |  | 242 |
| Residential construction |  | 398 | (43) |  |  | 355 |
| Commercial construction |  | 118 | 41 |  |  | 159 |
| Land and land development |  | 208 | 20 |  |  | 228 |
| Commercial business |  | 1533 | (248) |  |  | 1285 |
| SBA commercial business |  | 1555 | (21) | (55) | 9 | 1488 |
| Consumer |  | 618 | 190 | (83) | 26 | 751 |
|  |  | $20484 | $347 | $(356) | $47 | $20522 |
| **June 30, 2024:** |  |  |  |  |  |  |
| Residential real estate |  | $6381 | $150 | $(35) | $59 | $6555 |
| Commercial real estate |  | 1645 | (33) |  |  | 1612 |
| Single tenant net lease |  | 3764 | 109 |  |  | 3873 |
| SBA commercial real estate |  | 2872 | 254 | (37) |  | 3089 |
| Multifamily |  | 410 | (48) |  |  | 362 |
| Residential construction |  | 351 | 19 |  |  | 370 |
| Commercial construction |  | 431 | (61) |  |  | 370 |
| Land and land development |  | 174 | (1) |  |  | 173 |
| Commercial business |  | 1484 | 192 | (8) |  | 1668 |
| SBA commercial business |  | 1434 | (209) | (24) | 11 | 1212 |
| Consumer |  | 446 | 129 | (95) | 25 | 505 |
|  |  | $19392 | $501 | $(199) | $95 | $19789 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The following table presents the activity in the allowance for credit losses by portfolio segment for the nine months ended June 30, 2025 and 2024:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | | | | | | |
|  |  | **Beginning** <br>**Balance** | **Adoption of**<br>**ASC 326** | **Provisions** <br>**(Credits)** | <br>**Charge-Offs** | <br>**Recoveries** | **Ending** <br>**Balance** |
|  |  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| **June 30, 2025:** |  |  |  |  |  |  |  |
| Residential real estate |  | $7485 | $— | $(13) | $(39) | $3 | $7436 |
| Commercial real estate  |  | 1744 |  | 100 | (6) |  | 1838 |
| Single tenant net lease |  | 4038 |  | (774) |  |  | 3264 |
| SBA commercial real estate |  | 3100 |  | 365 | (284) | 295 | 3476 |
| Multifamily |  | 341 |  | (99) |  |  | 242 |
| Residential construction |  | 405 |  | (50) |  |  | 355 |
| Commercial construction |  | 165 |  | (6) |  |  | 159 |
| Land and land development |  | 204 |  | 24 |  |  | 228 |
| Commercial business |  | 1657 |  | (372) |  |  | 1285 |
| SBA commercial business |  | 1550 |  | 1 | (122) | 59 | 1488 |
| Consumer |  | 605 |  | 323 | (251) | 74 | 751 |
|  |  | $21294 | $— | $(501) | $(702) | $431 | $20522 |
| **June 30, 2024:** |  |  |  |  |  |  |  |
| Residential real estate |  | $4641 | $1037 | $845 | $(35) | $67 | $6555 |
| Commercial real estate  |  | 1777 | 255 | (420) |  |  | 1612 |
| Single tenant net lease |  | 3810 | 222 | (159) |  |  | 3873 |
| SBA commercial real estate |  | 1922 | 511 | 633 | (39) | 62 | 3089 |
| Multifamily |  | 268 | (21) | 115 |  |  | 362 |
| Residential construction |  | 434 | (226) | 162 |  |  | 370 |
| Commercial construction |  | 282 | 43 | 45 |  |  | 370 |
| Land and land development |  | 307 | (74) | (60) |  |  | 173 |
| Commercial business |  | 1714 | (495) | 483 | (34) |  | 1668 |
| SBA commercial business |  | 1247 | 160 | (186) | (48) | 39 | 1212 |
| Consumer |  | 498 | 17 | 226 | (305) | 69 | 505 |
|  |  | $16900 | $1429 | $1684 | $(461) | $237 | $19789 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The table below presents the amortized cost basis of loans on nonaccrual and loans past due 90 or more days and still accruing interest. Also presented is the balance of loans on nonaccrual status at June 30, 2025 and September 30, 2024 for which there was no related allowance for credit losses. The Company recognized no interest income related to nonaccrual loans for the three - and nine-month periods ended June 30, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **At June 30, 2025** | **At June 30, 2025** | **At June 30, 2025** | **At September 30, 2024** | **At September 30, 2024** | **At September 30, 2024** |
|  | <br>**Total**<br>**Nonaccrual**<br>**Loans** | **Nonaccrual**<br>**Loans with**<br>**No Allowance** <br>**For Credit** <br>**Losses** | <br>**Loans 90+**<br>**Days Past Due**<br>**Still Accruing** | <br>**Total**<br>**Nonaccrual**<br>**Loans** | **Nonaccrual**<br>**Loans with**<br>**No Allowance** <br>**For Credit** <br>**Losses** | <br><br>**Loans 90+**<br>**Days Past Due**<br>**Still Accruing** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |  |
| Residential real estate | $6132 | $4193 | $— | $4583 | $3479 | $— |
| Commercial real estate | 458 | 401 |  | 619 | 496 |  |
| Single tenant net lease |  |  |  |  |  |  |
| SBA commercial real estate | 5769 | 397 |  | 8159 | 5648 |  |
| Multifamily | 211 | 211 |  | 263 | 263 |  |
| Residential construction |  |  |  |  |  |  |
| Commercial construction |  |  |  |  |  |  |
| Land and land development |  |  |  |  |  |  |
| Commercial business | 762 | 123 |  | 1335 | 382 |  |
| SBA commercial business | 1766 | 450 |  | 1858 | 257 |  |
| Consumer | 117 | 117 |  | 125 | 119 |  |
| &nbsp;&nbsp;Total | $15215 | $5892 | $— | $16942 | $10644 | $— |

---

The following table presents the amortized cost basis of collateral dependent loans by collateral type, which are individually evaluated to determine expected credit losses. Other collateral represents business assets including equipment, accounts receivable and other assets, except for the case of consumer loans, which are collateralized by consumer non-real estate assets:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | June 30, 2025 | June 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2024 | September 30, 2024 |
|  | Real Estate | Other | Total | Real Estate | Other | Total |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Residential real estate | $6132 | $— | $6132 | $4583 | $— | $4583 |
| Commercial real estate | 458 |  | 458 | 619 |  | 619 |
| SBA commercial real estate | 5769 |  | 5769 | 8159 |  | 8159 |
| Multifamily | 211 |  | 211 | 263 |  | 263 |
| Commercial business |  | 762 | 762 |  | 1335 | 1335 |
| SBA commercial business |  | 1766 | 1766 |  | 1858 | 1858 |
| Consumer |  | 117 | 117 |  | 125 | 125 |
|  | $12570 | $2645 | $15215 | $13624 | $3318 | $16942 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The following table presents the aging of past due loans at June 30, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **30-59 Days**<br>**Past Due** | **60-89 Days**<br>**Past Due** | **90+ Days**<br>**Past Due** | **Total**<br>**Past Due** | <br>**Current** | **Total**<br>**Loans** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Residential real estate | $2923 | $1280 | $3864 | $8067 | $603626 | $611693 |
| Commercial real estate | 20 | 80 | 227 | 327 | 202119 | 202446 |
| Single tenant net lease |  |  |  |  | 756645 | 756645 |
| SBA commercial real estate |  |  | 5509 | 5509 | 55851 | 61360 |
| Multifamily |  |  |  |  | 34396 | 34396 |
| Residential construction |  |  |  |  | 40248 | 40248 |
| Commercial construction |  |  |  |  | 7850 | 7850 |
| Land and land development |  |  |  |  | 17539 | 17539 |
| Commercial business | 26 | 84 |  | 110 | 125242 | 125352 |
| SBA commercial business | 25 |  | 1396 | 1421 | 16522 | 17943 |
| Consumer | 190 |  | 117 | 307 | 39663 | 39970 |
| &nbsp;&nbsp;Total | $3184 | $1444 | $11113 | $15741 | $1899701 | $1915442 |

---

The following table presents the aging of past due loans at September 30, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **30-59 Days**<br>**Past Due** | **60-89 Days**<br>**Past Due** | **90+ Days**<br>**Past Due** | **Total**<br>**Past Due** | <br>**Current** | **Total**<br>**Loans** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Residential real estate | $2490 | $804 | $2053 | $5347 | $664664 | $670011 |
| Commercial real estate | 94 | 190 | 496 | 780 | 204067 | 204847 |
| Single tenant net lease |  |  |  |  | 750642 | 750642 |
| SBA commercial real estate | 257 | 466 | 4252 | 4975 | 50582 | 55557 |
| Multifamily |  |  |  |  | 37763 | 37763 |
| Residential construction |  |  |  |  | 53237 | 53237 |
| Commercial construction |  |  |  |  | 9172 | 9172 |
| Land and land development |  |  |  |  | 17678 | 17678 |
| Commercial business | 23 | 1 | 33 | 57 | 124582 | 124639 |
| SBA commercial business | 61 | 105 | 436 | 602 | 17740 | 18342 |
| Consumer | 165 |  | 32 | 197 | 42016 | 42213 |
| &nbsp;&nbsp;Total | $3090 | $1566 | $7302 | $11958 | $1972143 | $1984101 |

---

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, public information, historical payment experience, credit documentation, and current economic conditions and trends, among other factors. The Company classifies loans based on credit risk at least quarterly. The Company uses the following regulatory definitions for risk ratings:

*Pass:* Loans in this risk category involve borrowers of acceptable-to-strong credit quality and risk who have the apparent ability to satisfy their loan obligations. Loans in this risk grade would possess sufficient mitigating factors, such as adequate collateral or strong guarantors possessing the capacity to repay the debt if required, for any weakness that may exist.

*Special Mention:* Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Company's credit position at some future date.

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

*Substandard:* Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

*Doubtful:* Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

*Loss:* Loans classified as loss are considered uncollectible and of such little value that their continuance on the Company's books as an asset is not warranted.

The following tables outline, as of June 30, 2025, the amount of each loan and lease classification and the amount categorized into each risk rating based on fiscal year of origination as well as current period gross charge-offs:

Loans Amortized Cost Basis by Origination Fiscal Year End September 30,

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  | Revolving |  |
|  |  |  |  |  |  |  |  | Loans |  |
|  |  |  |  |  |  |  |  | Converted |  |
|  |  |  |  |  |  |  | Revolving | to Term |  |
| *(In thousands)* | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Loans | Loans | Total |
| **Residential real estate** |  |  |  |  |  |  |  |  |  |
| Pass | 55971 | 30279 | 42475 | 43351 | 16548 | 56725 | 359833 |  | 605182 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard | 2389 | 424 | 878 | 311 | 40 | 481 | 1975 |  | 6498 |
| Doubtful |  |  |  |  |  | 13 |  |  | 13 |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total residential real estate | 58360 | 30703 | 43353 | 43662 | 16588 | 57219 | 361808 |  | 611693 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  | 37 | 2 |  |  | 39 |
| **Commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass | 18896 | 19750 | 38454 | 58290 | 17048 | 48074 |  |  | 200512 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  | 152 | 249 | 658 | 875 |  |  | 1934 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total commercial real estate | 18896 | 19750 | 38606 | 58539 | 17706 | 48949 |  |  | 202446 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  | 6 |  |  |  |  | 6 |
| **Single tenant net lease** |  |  |  |  |  |  |  |  |  |
| Pass | 47580 | 33084 | 141129 | 262313 | 70124 | 202415 |  |  | 756645 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total single tenant net lease | 47580 | 33084 | 141129 | 262313 | 70124 | 202415 |  |  | 756645 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **SBA commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass | 8106 | 9261 | 7597 | 8511 | 7546 | 11900 | 48 |  | 52969 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  | 3948 |  | 134 | 43 | 4266 |  |  | 8391 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total SBA commercial real estate | 8106 | 13209 | 7597 | 8645 | 7589 | 16166 | 48 |  | 61360 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  | 284 |  |  | 284 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

Loans Amortized Cost Basis by Origination Fiscal Year End September 30,

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 | <br>Prior | <br>Revolving<br>Loans | Revolving<br>Loans<br>Converted<br>to Term<br>Loans | <br>Total |
| **Multifamily** |  |  |  |  |  |  |  |  |  |
| Pass |  | 1719 | 4275 | 10832 | 5031 | 12328 |  |  | 34185 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  | 211 |  |  | 211 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total multifamily |  | 1719 | 4275 | 10832 | 5031 | 12539 |  |  | 34396 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **Residential construction** |  |  |  |  |  |  |  |  |  |
| Pass | 11701 | 3354 | 16178 | 9015 |  |  |  |  | 40248 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total residential construction | 11701 | 3354 | 16178 | 9015 |  |  |  |  | 40248 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **Commercial construction** |  |  |  |  |  |  |  |  |  |
| Pass | 1807 | 872 | 625 | 4546 |  |  |  |  | 7850 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total commercial construction | 1807 | 872 | 625 | 4546 |  |  |  |  | 7850 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **Land and land development** |  |  |  |  |  |  |  |  |  |
| Pass | 3038 | 1042 | 7363 | 4379 | 727 | 990 |  |  | 17539 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total land and land development | 3038 | 1042 | 7363 | 4379 | 727 | 990 |  |  | 17539 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

Loans Amortized Cost Basis by Origination Fiscal Year End September 30,

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2024 | 2023 | 2022 | 2021 | <br>Prior | <br>Revolving<br>Loans | Revolving<br>Loans<br>Converted<br>to Term<br>Loans | <br>Total |
| **Commercial business** |  |  |  |  |  |  |  |  |  |
| Pass | 23966 | 41340 | 29393 | 18961 | 8007 | 2923 |  |  | 124590 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard | 78 |  | 682 |  |  | 2 |  |  | 762 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total commercial business | 24044 | 41340 | 30075 | 18961 | 8007 | 2925 |  |  | 125352 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **SBA commercial business** |  |  |  |  |  |  |  |  |  |
| Pass | 1591 | 5593 | 998 | 613 | 535 | 4387 | 483 |  | 14200 |
| Special Mention |  |  | 565 |  |  |  | 510 |  | 1075 |
| Substandard | 25 | 836 |  |  | 50 | 1757 |  |  | 2668 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total SBA commercial business | 1616 | 6429 | 1563 | 613 | 585 | 6144 | 993 |  | 17943 |
| &nbsp;&nbsp;YTD gross charge-offs | 55 | 22 |  |  | 11 | 34 |  |  | 122 |
| **Consumer** |  |  |  |  |  |  |  |  |  |
| Pass | 3167 | 2960 | 2147 | 1702 | 156 | 33 | 29688 |  | 39853 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  | 117 |  | 117 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total consumer | 3167 | 2960 | 2147 | 1702 | 156 | 33 | 29805 |  | 39970 |
| &nbsp;&nbsp;YTD gross charge-offs |  | 245 |  | 6 |  |  |  |  | 251 |
| **Total loans** |  |  |  |  |  |  |  |  |  |
| Pass | 175823 | 149254 | 290634 | 422513 | 125722 | 339775 | 390052 |  | 1893773 |
| Special Mention |  |  | 565 |  |  |  | 510 |  | 1075 |
| Substandard | 2492 | 5208 | 1712 | 694 | 791 | 7592 | 2092 |  | 20581 |
| Doubtful |  |  |  |  |  | 13 |  |  | 13 |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total loans | 178315 | 154462 | 292911 | 423207 | 126513 | 347380 | 392654 |  | 1915442 |
| &nbsp;&nbsp;YTD gross charge-offs | 55 | 267 |  | 12 | 48 | 320 |  |  | 702 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The following tables outline, as of September 30, 2024, the amount of each loan and lease classification and the amount categorized into each risk rating based on fiscal year of origination as well as current period gross charge-offs:

Loans Amortized Cost Basis by Origination Fiscal Year End September 30,

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  | Revolving |  |
|  |  |  |  |  |  |  |  | Loans |  |
|  |  |  |  |  |  |  |  | Converted |  |
| *(In thousands)* |  |  |  |  |  |  | Revolving | to Term |  |
|  | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Loans | Loans | Total |
| **Residential real estate** |  |  |  |  |  |  |  |  |  |
| Pass | 62304 | 39024 | 46036 | 18129 | 11293 | 53407 | 436235 |  | 666428 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard | 734 | 910 | 273 | 348 |  | 601 | 700 |  | 3566 |
| Doubtful |  |  |  |  |  | 17 |  |  | 17 |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total residential real estate | 63038 | 39934 | 46309 | 18477 | 11293 | 54025 | 436935 |  | 670011 |
| &nbsp;&nbsp;YTD gross charge-offs | 36 |  |  | 1 |  | 6 | 125 |  | 168 |
| **Commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass | 21380 | 41689 | 62181 | 21295 | 7727 | 49425 |  |  | 203697 |
| Special Mention | 150 |  |  |  |  |  |  |  | 150 |
| Substandard |  | 619 | 190 |  | 22 | 169 |  |  | 1000 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total commercial real estate | 21530 | 42308 | 62371 | 21295 | 7749 | 49594 |  |  | 204847 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  | 6 |
| **Single tenant net lease** |  |  |  |  |  |  |  |  |  |
| Pass | 34819 | 148265 | 273898 | 71361 | 97182 | 125117 |  |  | 750642 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total single tenant net lease | 34819 | 148265 | 273898 | 71361 | 97182 | 125117 |  |  | 750642 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **SBA commercial real estate** |  |  |  |  |  |  |  |  |  |
| Pass | 9623 | 8543 | 8913 | 6280 | 6843 | 5672 | 98 |  | 45972 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  | 162 | 143 | 1766 | 7514 |  |  | 9585 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total SBA commercial real estate | 9623 | 8543 | 9075 | 6423 | 8609 | 13186 | 98 |  | 55557 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  | 10 | 48 |  |  | 58 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

Loans Amortized Cost Basis by Origination Fiscal Year End September 30,

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2024 | 2023 | 2022 | 2021 | 2020 | <br>Prior | <br>Revolving<br>Loans | Revolving<br>Loans<br>Converted<br>to Term<br>Loans | <br>Total |
| **Multifamily** |  |  |  |  |  |  |  |  |  |
| Pass | 4995 | 2562 | 11090 | 5207 | 10435 | 3211 |  |  | 37500 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  | 263 |  |  | 263 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total multifamily | 4995 | 2562 | 11090 | 5207 | 10435 | 3474 |  |  | 37763 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **Residential construction** |  |  |  |  |  |  |  |  |  |
| Pass | 10244 | 30903 | 12090 |  |  |  |  |  | 53237 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total residential construction | 10244 | 30903 | 12090 |  |  |  |  |  | 53237 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **Commercial construction** |  |  |  |  |  |  |  |  |  |
| Pass | 335 | 4441 | 4396 |  |  |  |  |  | 9172 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total commercial construction | 335 | 4441 | 4396 |  |  |  |  |  | 9172 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |
| **Land and land development** |  |  |  |  |  |  |  |  |  |
| Pass | 1538 | 9072 | 4994 | 892 | 313 | 869 |  |  | 17678 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  |  |  |  |  |  |  |  |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total land and land development | 1538 | 9072 | 4994 | 892 | 313 | 869 |  |  | 17678 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  |  |  |  |  |  |  |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

Loans Amortized Cost Basis by Origination Fiscal Year End September 30,

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 2024 | 2023 | 2022 | 2021 | 2020 | <br>Prior | <br>Revolving<br>Loans | Revolving<br>Loans<br>Converted<br>to Term<br>Loans | <br>Total |
| **Commercial business** |  |  |  |  |  |  |  |  |  |
| Pass | 39647 | 44764 | 22928 | 10286 | 657 | 4978 |  |  | 123260 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  | 896 | 148 | 44 | 4 | 287 |  |  | 1379 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total commercial business | 39647 | 45660 | 23076 | 10330 | 661 | 5265 |  |  | 124639 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  | 32 |  | 2 |  |  | 34 |
| **SBA commercial business** |  |  |  |  |  |  |  |  |  |
| Pass | 4919 | 2513 | 678 | 665 | 3700 | 2376 | 696 |  | 15547 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard | 835 |  |  | 54 | 189 | 1717 |  |  | 2795 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total SBA commercial business | 5754 | 2513 | 678 | 719 | 3889 | 4093 | 696 |  | 18342 |
| &nbsp;&nbsp;YTD gross charge-offs |  |  |  | 5 | 5 | 162 |  |  | 172 |
| **Consumer** |  |  |  |  |  |  |  |  |  |
| Pass | 4508 | 3562 | 2848 | 361 | 152 | 30 | 30627 |  | 42088 |
| Special Mention |  |  |  |  |  |  |  |  |  |
| Substandard |  |  | 6 |  |  |  | 119 |  | 125 |
| Doubtful |  |  |  |  |  |  |  |  |  |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total consumer | 4508 | 3562 | 2854 | 361 | 152 | 30 | 30746 |  | 42213 |
| &nbsp;&nbsp;YTD gross charge-offs |  | 6 |  | 1 |  |  | 381 |  | 388 |
| **Total loans** |  |  |  |  |  |  |  |  |  |
| Pass | 194312 | 335338 | 450052 | 134476 | 138302 | 245085 | 467656 |  | 1965221 |
| Special Mention | 150 |  |  |  |  |  |  |  | 150 |
| Substandard | 1569 | 2425 | 779 | 589 | 1981 | 10551 | 819 |  | 18713 |
| Doubtful |  |  |  |  |  | 17 |  |  | 17 |
| Loss |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Total loans | 196031 | 337763 | 450831 | 135065 | 140283 | 255653 | 468475 |  | 1984101 |
| &nbsp;&nbsp;YTD gross charge-offs | 36 | 6 |  | 39 | 15 | 218 | 506 |  | 820 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

*Financial Difficulty Modifications*

An FDM may result when a borrower is in financial distress and may be in the form of principal forgiveness, an interest rate reduction, a term extension or a significant payment delay. In some cases, the Company may provide multiple types of modifications for a single loan. One type of modification, such as payment delay, may be granted initially. However, if the borrower continues to experience financial difficulty, another modification, such as term extension and/or interest rate reduction may be granted. Additionally, modifications with a term extension or interest rate reduction are intended to reduce the borrower's monthly payment, while modifications with a payment delay, which typically allow borrowers to make monthly payments or interest only payments for a period of time, are structured to cure the payment defaults by making delinquent payments due at maturity.

There were no new FDMs made or modifications of existing FDMs during the three - and nine-months ended June 30, 2025 and 2024.

*SBA Loan Servicing Rights*

The Company originates loans to commercial customers under the SBA 7(a) program and other programs, and typically sells the guaranteed portion of the SBA loans with servicing rights retained. Loan servicing rights on originated SBA loans that have been sold are initially recorded at fair value. Capitalized SBA servicing rights are then amortized in proportion to and over the period of estimated net servicing income. Impairment of SBA servicing rights is assessed using the present value of estimated future cash flows.

The aggregate fair value of SBA loan servicing rights approximates its carrying value. A valuation model employed by an independent third party calculates the present value of future cash flows and is used to estimate fair value at the date of sale and on a quarterly basis for impairment analysis purposes. Management periodically compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Key assumptions used to estimate the fair value of the SBA loan servicing rights include the discount rate and prepayment speed assumptions. For purposes of impairment, risk characteristics such as interest rate, loan type, term and investor type are used to stratify the SBA loan servicing rights. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. Changes in the valuation allowance are reported in other noninterest income in the consolidated statements of income.

The unpaid principal balance of SBA loans serviced for others was $208.2 million, $194.4 million and $209.7 million at June 30, 2025, September 30, 2024 and June 30, 2024, respectively. Contractually specified late fees and ancillary fees expensed on SBA loans were $5,000 and $2,000 for the three -month periods ended June 30, 2025 and 2024, respectively. Contractually specified late fees and ancillary fees expensed on SBA loans was $20,000 for the nine-month period ended June 30, 2025 compared to a credit of $6,000 for the nine-months ended June 30, 2024. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans was $452,000 and $457,000 for the three -month periods ended June 30, 2025 and 2024, respectively. Net servicing income (contractually specified servicing fees offset by direct servicing expenses) related to SBA loans was $1.3 million and $1.4 million for the nine-month periods ended June 30, 2025 and 2024, respectively. Net servicing income and costs related to SBA loans are included in other noninterest income in the consolidated statements of income.

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

An analysis of SBA loan servicing rights for the three - and nine-month periods ended June 30, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Balance, beginning of period | $2686 | $2950 | $2687 | $2950 |
| Servicing rights capitalized | 332 | 156 | 829 | 691 |
| Amortization | (139) | (140) | (405) | (420) |
| Direct write-offs | (64) | (178) | (301) | (493) |
| Change in valuation allowance |  |  | 5 | 60 |
| Balance, end of period | $2815 | $2788 | $2815 | $2788 |

---

There was no valuation allowance related to SBA loan servicing rights at June 30, 2025. There was a valuation allowance of $5,000 related to SBA loan servicing rights at September 30, 2024.

*Mortgage Servicing Rights ("MSRs")*

The Company originated residential mortgage loans for sale in the secondary market and retained servicing for certain of these loans when they were sold. MSRs retained for originated loans that have been sold are accounted for at fair value. The fair value of MSRs are determined using the present value of estimated expected net servicing income using assumptions about expected mortgage loan prepayment rates, discount rate, servicing costs, and other economic factors, which are determined based on current market conditions. Changes in these underlying assumptions could cause the fair value of MSRs to change significantly in the future. Changes in fair value of MSRs are recorded in mortgage banking income in the accompanying consolidated statements of income. MSRs are subject to changes in value from, among other things, changes in interest rates, prepayments of the underlying loans and changes in the credit quality of the underlying loans.

During the quarter ended December 31, 2023, the Company sold substantially all of the Company's residential MSRs. Additionally, the Company sold the remaining residential MSRs during the quarter ended March 31, 2024.

There was no unpaid principal balance of residential mortgage loans serviced for others at June 30, 2025 and September 30, 2024 due to the sale of all of the Company's residential MSRs during the nine-month period ended June 30, 2024, which also resulted in the elimination of custodial escrow balances. There were no custodial escrow balances maintained in connection with loan servicing and other liabilities at June 30, 2025.

Changes in the carrying value of MSRs accounted for at fair value for the three - and nine-month periods ended June 30, 2024 were as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended**<br>**June 30,** <br>**2024** | **Nine Months**<br>**Ended**<br>**June 30,** <br>**2024** |
|  | *(In thousands)* | *(In thousands)* |
| Fair value, beginning of period | $— | $59768 |
| Servicing rights capitalized |  | 509 |
| Changes in fair value related to: |  |  |
| Loan repayments |  | (672) |
| Sales |  | (59464) |
| Gain (Loss) on sale of MSRs |  | (4) |
| Change in valuation model inputs or assumptions |  | (137) |
| Balance, end of period | $— | $— |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

*Nonresidential MSRs*

The Company also periodically sells single tenant net lease loans with servicing rights retained. Loan servicing rights on these nonresidential mortgage loans are initially recorded at fair value and are then amortized in proportion to and over the period of estimated net servicing income. Impairment of nonresidential MSRs is assessed using the present value of estimated future cash flows. The aggregate fair value of nonresidential MSRs approximates its carrying value. A valuation model employed by management calculates the present value of future cash flows and is used to estimate fair value at the date of sale and on a quarterly basis for impairment analysis purposes. Management periodically compares the valuation model inputs and results to published industry data in order to validate the model results and assumptions. Key assumptions used to estimate the fair value of the nonresidential MSRs include the discount rate and prepayment speed assumptions. Impairment is recognized through a valuation allowance to the extent that fair value is less than the carrying amount. Changes in the valuation allowance are reported in other noninterest income in the consolidated statements of income.

The unpaid principal balance of nonresidential mortgage loans serviced for others was $34.4 million, $35.0 million and $35.2 million at June 30, 2025, September 30, 2024 and June 30, 2024, respectively. Contractually specified servicing fees, late fees and other ancillary fees related to nonresidential mortgage loans serviced for others were $3,000 and $1,000 for the three - month periods ended June 30, 2025 and 2024, respectively. Contractually specified servicing fees, late fees and other ancillary fees related to nonresidential mortgage loans serviced for others were $9,000 and $5,000 for the nine-month periods ended June 30, 2025 and 2024, respectively. Contractually specified servicing fees on nonresidential mortgage loans serviced for others are included in other noninterest income in the consolidated statements of income.

An analysis of nonresidential MSRs for the three - and nine-month periods ended June 30, 2025 and 2024 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Balance, beginning of period | $58 | $77 | $67 | $101 |
| Servicing rights capitalized |  |  |  |  |
| Amortization | (4) | (5) | (13) | (18) |
| Direct write-offs |  |  |  | (11) |
| Change in valuation allowance |  |  |  |  |
| Balance, end of period | $54 | $72 | $54 | $72 |

---

There was no valuation allowance related to nonresidential MSRs at June 30, 2025 and September 30, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Deposits** 

Deposits at June 30, 2025 and September 30, 2024 consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br>**2025** | **September 30,** <br>**2024** |
|  | *(In thousands)* | *(In thousands)* |
| Noninterest-bearing demand deposits | $202649 | $191528 |
| NOW accounts | 357576 | 332388 |
| Money market accounts | 480575 | 393214 |
| Savings accounts | 147410 | 150913 |
| Retail time deposits | 267964 | 303681 |
| Brokered certificates of deposit | 280020 | 509157 |
| Total | $1736194 | $1880881 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Supplemental Disclosure for Net Income Per Share** 

Net income per share information is presented below for the three - and nine-month periods ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(Dollars in thousands, except per share data)* | *(Dollars in thousands, except per share data)* | *(Dollars in thousands, except per share data)* | *(Dollars in thousands, except per share data)* |
| Basic: |  |  |  |  |
| &nbsp;&nbsp;Earnings: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $6166 | $4073 | $17890 | $9920 |
| &nbsp;&nbsp;Shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares outstanding, basic | 6881077 | 6832452 | 6867734 | 6829490 |
| Net income per common share, basic | $0.90 | $0.60 | $2.60 | $1.45 |
| Diluted: |  |  |  |  |
| &nbsp;&nbsp;Earnings: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to First Savings Financial Group, Inc. available to common shareholders | $6166 | $4073 | $17890 | $9920 |
| &nbsp;&nbsp;Shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares outstanding, basic | 6881077 | 6832452 | 6867734 | 6829490 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add: Dilutive effect of outstanding options | 76323 | 2332 | 83164 | 21655 |
| &nbsp;&nbsp;&nbsp;&nbsp;Add: Dilutive effect of restricted stock | 20274 |  | 16844 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares outstanding, as adjusted | 6977674 | 6834784 | 6967742 | 6851145 |
| Net income per common share, diluted | $0.88 | $0.60 | $2.57 | $1.45 |

---

Nonvested restricted stock shares are not considered as outstanding for purposes of computing weighted average common shares outstanding.

Stock options for 147,825 shares of common stock were excluded from the calculation of diluted net income per common share for the three - and nine-month periods ended June 30, 2025, respectively, because their effect was antidilutive. Stock options for 449,797 and 340,972 shares of common stock were excluded from the calculation of diluted net income per common share for the three -and nine-month periods ended June 30, 2024, because their effect was antidilutive. There were no antidilutive restricted stock awards excluded from the calculation of diluted net income per share for the three - and nine-month periods ended June 30, 2025 and 2024.

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Fair Value Measurements and Disclosures about Fair Value of Financial Instruments** 

FASB Accounting Standards Codification ("ASC") Topic 820*, Fair Value Measurements,* provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are described as follows:

Level 1: Inputs to the valuation methodology are quoted prices, unadjusted, for identical assets or liabilities in active markets. A quoted market price in an active market provides the most reliable evidence of fair value and shall be used to measure fair value whenever available.

---

| | |
|:---|:---|
| Level 2: | Inputs to the valuation methodology include quoted market prices for similar assets or liabilities in active markets; quoted market prices for identical or similar assets or liabilities in markets that are not active; or inputs that are derived principally from or can be corroborated by observable market data by correlation or other means. |

---

---

| | |
|:---|:---|
| Level 3: | Inputs to the valuation methodology are unobservable and significant to the fair value measurement. Level 3 assets and liabilities include financial instruments whose value is determined using discounted cash flow methodologies, as well as instruments for which the determination of fair value requires significant management judgment or estimation. |

---

A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. The tables below present the balances of financial assets and liabilities measured at fair value on a recurring and nonrecurring basis as of June 30, 2025 and September 30, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying Value** | **Carrying Value** | **Carrying Value** | **Carrying Value** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| **June 30, 2025:** |  |  |  |  |
| ***Assets Measured – Recurring Basis:*** |  |  |  |  |
| &nbsp;&nbsp;Securities available for sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury notes | $26352 | $— | $— | $26352 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed |  | 23851 |  | 23851 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO |  | 24522 |  | 24522 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued CMO |  | 19 | 176 | 195 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued ABS |  | 162 | 77 | 239 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA certificates |  | 10761 | 31 | 10792 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds |  | 155560 |  | 155560 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  | 1900 | 1900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities available for sale | $26352 | $214875 | $2184 | $243411 |
| &nbsp;&nbsp;Equity securities (included in other assets) | $201 | $589 | $— | $790 |
| ***Assets Measured – Nonrecurring Basis:*** |  |  |  |  |
| &nbsp;&nbsp;Collateral dependent loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | $— | $— | $1822 | $1822 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate |  |  | 26 | 26 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA commercial real estate |  |  | 4768 | 4768 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial business |  |  | 598 | 598 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA commercial business |  |  | 675 | 675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total collateral dependent loans | $— | $— | $7889 | $7889 |
| &nbsp;&nbsp;Other real estate owned | $— | $— | $669 | $669 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Carrying Value** | **Carrying Value** | **Carrying Value** | **Carrying Value** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| **September 30, 2024:** |  |  |  |  |
| ***Assets Measured – Recurring Basis*** |  |  |  |  |
| &nbsp;&nbsp;Securities available for sale: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;U.S. Treasury notes | $27411 | $— | $— | $27411 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency mortgage-backed |  | 26276 |  | 26276 |
| &nbsp;&nbsp;&nbsp;&nbsp;Agency CMO |  | 14926 |  | 14926 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued CMO |  | 20 | 240 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;Privately-issued ABS |  | 235 | 78 | 313 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA certificates |  | 11896 | 30 | 11926 |
| &nbsp;&nbsp;&nbsp;&nbsp;Municipal bonds |  | 165687 |  | 165687 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  | 1880 | 1880 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total securities available for sale | $27411 | $219040 | $2228 | $248679 |
| &nbsp;&nbsp;Equity securities (included in other assets) | $194 | $456 | $— | $650 |
| ***Assets Measured – Nonrecurring Basis*** |  |  |  |  |
| &nbsp;&nbsp;Collateral dependent loans: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Residential real estate | $— | $— | $1100 | $1100 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial real estate |  |  | 120 | 120 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA real estate |  |  | 1763 | 1763 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commercial business |  |  | 768 | 768 |
| &nbsp;&nbsp;&nbsp;&nbsp;SBA commercial business |  |  | 1183 | 1183 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consumer |  |  | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total collateral dependent loans | $— | $— | $4938 | $4938 |
| &nbsp;&nbsp;SBA loan servicing rights | $— | $— | $2687 | $2687 |

---

Fair value is based upon quoted market prices where available. If quoted market prices are not available, fair value is based on internally developed models or obtained from third parties that primarily use, as inputs, observable market-based parameters or a matrix pricing model that employs the Bond Market Association's standard calculations for cash flow and price/yield analysis and observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, or at the lower of cost or fair value. These adjustments may include unobservable parameters. Any such valuation adjustments have been applied consistently over time.

The Company's valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. There have been no changes in the valuation techniques and related inputs used for assets measured at fair value on a recurring and nonrecurring basis during the nine-month period ended June 30, 2025.

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

***Debt Securities Available for Sale and Equity Securities.*** Debt securities classified as available for sale and equity securities are reported at fair value on a recurring basis. These securities are classified as Level 1 of the valuation hierarchy where quoted market prices from reputable third-party brokers are available in an active market. If quoted market prices are not available, the Company obtains fair value measurements from an independent pricing service. These securities are reported using Level 2 inputs and the fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, U.S. government and agency yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the security's terms and conditions, among other factors. For securities where quoted market prices, market prices of similar securities or prices from an independent third party pricing service are not available, fair values are calculated using discounted cash flows or other market indicators and are classified within Level 3 of the fair value hierarchy. Changes in fair value of equity securities are reported in noninterest income. Changes in fair value of securities available for sale are recorded in other comprehensive income, net of income tax effect.

***Derivative Financial Instruments***. Derivative financial instruments consist of mortgage banking interest rate lock commitments and forward mortgage loan sale commitments. The fair value of forward mortgage loan sale commitments is obtained from an independent third party and is based on the gain or loss that would occur if the Company were to pair-off the sales transaction with the investor. The fair value of forward mortgage loan sale commitments is classified as Level 2 in the fair value hierarchy.

The fair value of interest rate lock commitments is also obtained from an independent third party and is based on investor prices for the underlying loans or current secondary market prices for loans with similar characteristics, less estimated costs to originate the loans and adjusted for the anticipated funding probability (pull-through rate). The fair value of interest rate lock commitments is classified as Level 3 in the fair value hierarchy.

The table below presents a reconciliation of derivative assets and liabilities (interest rate lock commitments) measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three – and nine-month periods ended June 30, 2024:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** <br>**June 30,**  | **Nine Months Ended** <br>**June 30,**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(In thousands)* | **2024** | **2024** |
| Beginning balance | $— | $268 |
| Unrealized gains (losses) recognized in earnings, net of settlements |  | (268) |
| Ending balance | $— | $— |

---

Due to the wind down of the Company's national Mortgage Banking operation, and the resulting low level of mortgage loan originations and sales, there were no interest rate lock commitments or forward mortgage loan sale commitments as of June 30, 2025 or September 30, 2024.

The realized and unrealized gains recognized in earnings in the table above are included in mortgage banking income on the accompanying consolidated statements of income. There were no unrealized gains recognized in earnings for the three - and nine-month periods ended June 30, 2025 and 2024 attributable to Level 3 derivative assets and liabilities held at the balance sheet date.

***Collateral Dependent Loans***. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional individual reserves and adjusted accordingly. In accordance with accounting standards, only collateral dependent loans for which an allowance for credit loss has been established or a partial charge-off recorded require classification in the fair value hierarchy. The fair value of collateral dependent loans is classified as Level 3 in the fair value hierarchy.

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and its fair value is generally determined based on real estate appraisals or other independent evaluations by qualified professionals. The appraisals are then discounted to reflect management's estimate of the fair value of the collateral given the current market conditions and the condition of the collateral. At June 30, 2025 and September 30, 2024, the significant unobservable inputs used in the fair value measurement of collateral dependent loans were as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Financial Instrument** | <br>**Significant**<br>**Unobservable**<br>**Inputs** | **Range of Inputs**<br>**(Weighted Average)**<br>**June 30,** <br>**2025** | <br>**Range of Inputs (Weighted**<br>**Average) September 30,** <br>**2024** |
| Collateral dependent loans | Discount from appraised value | 0.0% - 25.0% (8.47%) | 0.0% - 100.0% (18.42%) |
|  | Estimated costs to sell | 0.0% - 9.0% (8.95%) | 6.0% - 6.0% (6.00%) |

---

During the three - and nine-month periods ended June 30, 2025, the Company recognized provisions for credit losses on individually evaluated loans of $301,000 and $813,000, respectively. During the three - and nine-month periods ended June 30, 2024, the Company recognized provisions for credit losses on individually evaluated loans of $727,000 and $1.4 million, respectively.

***SBA and Nonresidential Loan Servicing Rights***. SBA loan servicing rights represent the value associated with servicing SBA loans that have been sold. The fair value of SBA loan servicing rights is determined on a quarterly basis by an independent third party valuation model using market-based discount rate and prepayment assumptions, and is classified as Level 3 in the fair value hierarchy. At June 30, 2025, there were no SBA loan servicing rights measured at fair value. At September 30, 2024, the significant unobservable inputs used in the fair value measurement of SBA loan servicing rights measured at fair value were as follows:

---

| | | |
|:---|:---|:---|
| <br>**Financial Instrument** | **Significant**<br>**Unobservable**<br>**Inputs** | **Range of Inputs (Weighted**<br>**Average) September 30,** <br>**2024** |
| SBA loan servicing rights | Discount rate | 7.57% - 25.00% (11.75%) |
|  | Prepayment speed | 9.67% - 29.11% (19.06%) |

---

Impairment of the SBA loan servicing rights is recognized on a quarterly basis through a valuation allowance to the extent that fair value is less than the carrying amount. The Company reversed impairment charges of $5,000 and $60,000 on SBA loan servicing rights for the nine-month periods ended June 30, 2025 and 2024, respectively. The Company did not record any impairment charges on SBA loan servicing rights for the three -month periods ended June 30, 2025 and 2024.

There were no transfers into or out of the Company's Level 3 financial assets of the fair value hierarchy for the three - and nine-month periods ended June 30, 2025.

At June 30, 2025. the Company had one available for sale other investment security (subordinated debt issued by another financial institution) in Level 3 in the fair value hierarchy. The significant unobservable input used in the fair value measurement of available for sale investment securities was as follows:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Financial Instrument** | **Significant** <br>**Unobservable** <br>**Inputs** | <br>**June 30,** <br>**2025** | <br>**September 30,** <br>**2024** |
| Other investment security | Discount rate | 8.75% | 9.15% |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

The table below presents a reconciliation of available for sale investment securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three - and nine-month periods ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Beginning balance | $2242 | $1554 | $2228 | $460 |
| Transfers from Level 2 to Level 3 |  |  |  | 1200 |
| Change in value | (58) | 587 | (44) | 481 |
| Balance, end of period | $2184 | $2141 | $2184 | $2141 |

---

There were no available for sale investment securities transferred into or out of the Company's Level 3 financial assets of the fair value hierarchy for the three - and nine-month periods ended June 30, 2025.

There was one available for sale security with a fair value of $1.2 million transferred into the Company's Level 3 financial assets on the fair value hierarchy for the nine-month period ended June 30, 2024. There were no transfers into or out of the Company's Level 3 financial assets on the fair value hierarchy for the three-month period ended June 30, 2024.

***Other Real Estate Owned***. Other real estate owned held for sale is reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. The fair value of other real estate owned is classified as Level 3 in the fair value hierarchy.

Other real estate owned is reported at fair value, less estimated costs to dispose of the property. The fair values are determined by real estate appraisals, which are then generally discounted by management in order to reflect management's estimate of the fair value of the property given current market conditions and the condition of the property. At June 30, 2025, the Company had other real estate owned reported at fair value on a nonrecurring basis with a carrying value of $669,000. At September 30, 2024, the Company did not have any other real estate owned measured at fair value on a nonrecurring basis. The Company did not recognize any charges to write down other real estate owned to fair value for the three- and nine-month periods ended June 30, 2025 and 2024. As June 30, 2025, the significant unobservable inputs used in the fair value measurement of other real estate owned measured at fair value were as follows:

---

| | | |
|:---|:---|:---|
| <br>**Financial Instrument** | **Significant** <br>**Unobservable**<br>**Inputs** | **Range of Inputs (Weighted** <br>**Average) June 30,**<br>**2025** |
| Other real estate owned | Discount rate | 9.00% - 9.00% (9.00%) |

---

***Financial Instruments Recorded Using Fair Value Option.*** Under FASB ASC 825-10, the Company may elect to report most financial instruments and certain other items at fair value on an instrument-by-instrument basis, with changes in fair value reported in income. The election is made at the acquisition date of an eligible financial asset or financial liability, and may not be revoked once made.

Prior to the winddown of the Company's national mortgage banking operation, the Company had elected the fair value option for a portion of its residential mortgage loans held for sale. At June 30, 2025 and September 30, 2024, there were no mortgage loans held for sale carried at fair value.

The table below presents gains and losses and interest included in earnings related to financial assets measured at fair value under the fair value option for the three - and nine-month periods ended June 30, 2025 and 2024:

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
| *(In thousands)* | **2025** | **2024** | **2025** | **2024** |
| Gains (losses) – included in mortgage banking income | $— | $7 | $— | $(29) |
| Interest income |  | 77 |  | 443 |
|  | $— | $84 | $— | $414 |

---

GAAP requires disclosure of fair value information about financial instruments for interim reporting periods, whether or not recognized in the consolidated balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The carrying amounts and estimated fair values of the Company's financial instruments are as follows.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** |
|  | **Carrying**<br>**Amount** | **Level 1** | **Level 2** | **Level 3** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| **June 30, 2025:** |  |  |  |  |
| Financial assets: |  |  |  |  |
| &nbsp;&nbsp;Cash and due from banks | $18624 | $18624 | $— | $— |
| &nbsp;&nbsp;Interest-bearing deposits with banks | 33499 | 33499 |  |  |
| &nbsp;&nbsp;Interest-bearing time deposits | 490 |  | 490 |  |
| &nbsp;&nbsp;Securities held to maturity | 873 |  | 25 | 852 |
| &nbsp;&nbsp;Residential mortgage loans held for sale | 42129 |  |  | 42550 |
| &nbsp;&nbsp;SBA loans held for sale | 18841 |  |  | 20657 |
| &nbsp;&nbsp;Loans, net | 1895821 |  |  | 1804745 |
| &nbsp;&nbsp;FRB and FHLB stock | 25035 | N/A | N/A | N/A |
| &nbsp;&nbsp;Accrued interest receivable | 12033 |  | 12033 |  |
| &nbsp;&nbsp;Nonresidential mortgage loan servicing rights | 54 |  |  | 54 |
| &nbsp;&nbsp;SBA loan servicing rights | 2815 |  |  | 2996 |
| Financial liabilities: |  |  |  |  |
| &nbsp;&nbsp;Noninterest-bearing deposits | 202649 | 202649 |  |  |
| &nbsp;&nbsp;Interest-bearing deposits | 1533545 |  |  | 1532649 |
| &nbsp;&nbsp;Borrowings from FHLB | 434924 |  | 432885 |  |
| &nbsp;&nbsp;Subordinated notes | 28722 |  | 28020 |  |
| &nbsp;&nbsp;Accrued interest payable | 7731 |  | 7731 |  |
| &nbsp;&nbsp;Advance payments by borrowers for taxes and insurance | 636 |  | 636 |  |

---

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** | **Fair Value Measurements Using:** |
|  | **Carrying**<br>**Amount** | **Level 1** | **Level 2** | **Level 3** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| **September 30, 2024:** |  |  |  |  |
| Financial assets: |  |  |  |  |
| &nbsp;&nbsp;Cash and due from banks | $39393 | $39393 | $— | $— |
| &nbsp;&nbsp;Interest-bearing deposits with banks | 12749 | 12749 |  |  |
| &nbsp;&nbsp;Interest-bearing time deposits | 490 |  | 490 |  |
| &nbsp;&nbsp;Securities held to maturity | 1040 |  | 29 | 1023 |
| &nbsp;&nbsp;SBA loans held for sale | 25716 |  | 28375 |  |
| &nbsp;&nbsp;Loans, net | 1963852 |  |  | 1892241 |
| &nbsp;&nbsp;FRB and FHLB stock | 24986 | N/A | N/A | N/A |
| &nbsp;&nbsp;Accrued interest receivable | 11376 |  | 11376 |  |
| &nbsp;&nbsp;Nonresidential mortgage loan servicing rights | 67 |  |  | 67 |
| Financial liabilities: |  |  |  |  |
| &nbsp;&nbsp;Noninterest-bearing deposits | 191528 | 191528 |  |  |
| &nbsp;&nbsp;Interest-bearing deposits | 1689353 |  |  | 1688980 |
| &nbsp;&nbsp;Borrowings from FHLB | 301640 |  | 299259 |  |
| &nbsp;&nbsp;Subordinated note | 48603 |  | 47760 |  |
| &nbsp;&nbsp;Accrued interest payable | 13384 |  | 13384 |  |
| &nbsp;&nbsp;Advance payments by borrowers for taxes and insurance | 931 |  | 931 |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Employee Stock Ownership Plan** 

On October 6, 2008, the Company established a leveraged employee stock ownership plan ("ESOP") covering substantially all employees. The ESOP trust acquired 610,089 shares of Company common stock at a cost of $3.33 per share (both as adjusted for the three - for-one stock split effective September 15, 2021) financed by a term loan with the Company. The ESOP loan was repaid in full during the quarter ended December 31, 2015 and all shares have been allocated to participants in the plan; therefore, no compensation expense was recognized for the three - and nine-month periods ended June 30, 2025 and 2024. The ESOP trust held 250,495 and 262,176 shares of Company common stock at June 30, 2025 and September 30, 2024, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Stock Based Compensation Plans** 

The Company maintains four equity incentive plans under which stock options and restricted stock have been or may be granted, the 2010 Equity Incentive Plan ("2010 Plan"), approved by the Company's shareholders in February 2010; the 2016 Equity Incentive Plan ("2016 Plan"), approved by the Company's shareholders in February 2016; the 2021 Equity Incentive Plan ("2021 Plan") approved by the Company's shareholders in February 2021; and the 2025 Equity Incentive Plan ("2025 Plan") approved by the Company's shareholders in February 2025. Upon stockholder approval of the 2025 Plan, no further awards will be granted under the 2010 Plan, 2016 Plan or 2021 Plan and these plans shall remain in existence solely for the purpose of administering outstanding grants thereunder. The 2025 Plan provides for the award of restricted stock and the aggregate number of shares of the Company's common stock available for issuance under the 2025 Plan may not exceed 138,000 shares. As of June 30, 2025, restricted shares of 55,895 had been granted under the 2025 Plan to officers and key employees, which will vest over a five-year period. The Company generally issues new shares under Plans from its authorized but unissued shares. The Company accounts for any forfeitures as they occur, and any previously recognized compensation cost for an award is reversed in the period the award is forfeited.

*Stock Options*

Under the plans, the Company may grant both non-statutory and incentive stock options that may not have a term exceeding ten years. In the case of incentive stock options, the aggregate fair value (determined at the time the incentive stock options are granted) which are first exercisable during any calendar year shall not exceed $100,000. Exercise prices may not be less than

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

the fair market value of the underlying stock at the date of the grant. The terms of the plans also include provisions whereby all unearned options and restricted shares become immediately exercisable and fully vested upon a change in control.

Stock options granted generally vest ratably over five years and are exercisable in whole or in part for a period up to ten years from the date of the grant. Compensation expense is measured based on the fair market value of the options at the grant date and is recognized ratably over the period during which the shares are earned (the vesting period). The fair market value of stock options granted is estimated at the date of grant using a binomial option pricing model. Expected volatilities are based on historical volatility of the Company's stock. The expected term of options granted represents the period of time that options are expected to be outstanding. The risk free rate for the expected life of the options is based on the U.S. Treasury yield curve in effect at the grant date.

The fair value of options granted during the nine-month periods ended June 30, 2025 and 2024 were determined using the following assumptions:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Expected dividend yield | 2.55% | 3.74% |
| Risk-free interest rate | 4.36% | 4.44% |
| Expected volatility | 29.70% | 28.36% |
| Expected life of options | 6.9 years | 6.9 years |
| Weighted average fair value at grant date | $8.44 | $3.55 |

---

A summary of stock option activity as of June 30, 2025, and changes during the nine-month period then ended is presented below.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | <br>**Number of** <br>**Shares** | <br>**Weighted**<br>**Average**<br>**Exercise Price** | **Weighted**<br>**Average**<br>**Remaining**<br>**Contractual**<br>**Term**<br>**(Years)** | <br>**Aggregate**<br>**Intrinsic**<br>**Value** |
|  | *(Dollars in thousands, except exercise price data)* | *(Dollars in thousands, except exercise price data)* | *(Dollars in thousands, except exercise price data)* | *(Dollars in thousands, except exercise price data)* |
| Outstanding at beginning of period | 459547 | $20.10 |  |  |
| Granted | 21075 | 29.00 |  |  |
| Exercised | (41262) | 16.33 |  |  |
| Forfeited or expired | (8205) | 19.65 |  |  |
| Outstanding at end of period | 431155 | $19.48 | 3.9 | $1496 |
| Exercisable at end of period | 283616 | $20.30 | 4.4 | $1509 |

---

There were 41,262 and 2,955 stock options exercised during the nine-month periods ended June 30, 2025 and 2024, respectively. The Company recognized compensation expense related to stock options of $92,000 and $269,000 for the three - and nine-month periods ended June 30, 2025, respectively. The Company recognized compensation expense related to stock options of $78,000 and $231,000 for the three - and nine-month periods ended June 30, 2024, respectively. At June 30, 2025, there was $621,000 of unrecognized compensation expense related to nonvested stock options. The compensation expense is expected to be recognized over a weighted average period of 2.63 years. There was $612,000 in cash received and $59,000 in tax benefit from the exercise of stock options during the nine-month period ended June 30, 2025. There was $39,000 in cash received and $2,000 in tax benefit from exercise during the nine-month period ended June 30, 2024.

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*(Unaudited)*

*Restricted Stock*

The vesting period of restricted stock granted under the plans is generally five years beginning one year after the date of grant of the awards. Compensation expense is measured based on the fair market value of the restricted stock at the grant date and is recognized ratably over the vesting period. Compensation expense related to restricted stock recognized for the three - and nine-month periods ended June 30, 2025 was $164,000 and $380,000, respectively. Compensation expense related to restricted stock recognized for the three - and nine-month periods ended June 30, 2024 was $97,000 and $292,000, respectively.

A summary of the Company's nonvested restricted shares activity as of June 30, 2025 and changes during the nine-month period then ended is presented below.

---

| | | |
|:---|:---|:---|
|  | <br>**Number**<br>**of**<br>**Shares** | **Weighted**<br>**Average**<br>**Grant Date**<br>**Fair Value** |
| Nonvested at October 1, 2024 | 57433 | $21.64 |
| Granted | 61985 | $23.95 |
| Vested  | (17903) | $21.80 |
| Forfeited |  |  |
| Nonvested at June 30, 2025 | 101515 | $23.02 |

---

There were 17,903 restricted shares vested during the nine-month period ended June 30, 2025 with a total fair value of $519,000. There were 16,158 restricted shares that vested during the nine-month period ended June 30, 2024 with a total fair value of $244,000. At June 30, 2025, there was $2.0 million of unrecognized compensation expense related to nonvested restricted shares. The compensation expense is expected to be recognized over a weighted average period of 3.95 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Derivative Financial Instruments** 

Prior to the winddown of the Company's national mortgage banking division, the Company entered into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (i.e., rate lock commitment). The Company also entered into forward mortgage loan commitments to sell loans to various investors to protect itself against exposure to various factors and to reduce sensitivity to interest rate movements. Both the interest rate lock commitments and the related forward mortgage loan sales contracts are considered derivatives and are recorded on the accompanying consolidated balance sheets at fair value in accordance with FASB ASC 815, *Derivatives and Hedging*, with changes in fair value recorded in mortgage banking income in the accompanying consolidated statements of income. All such derivatives are considered stand-alone derivatives and have not been formally designated as hedges by management.

Certain financial instruments, including derivatives, may be eligible for offset in the balance sheet when the "right of setoff" exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company's derivative instruments are subject to master netting agreements. However, the Company has not elected to offset such financial instruments in the consolidated balance sheets. The Company may be required to post margin collateral to derivative counterparties based on agreements with the dealers. Cash collateral related to derivative contracts is recorded in interest-bearing deposits with banks or other assets in the consolidated balance sheets. At June 30, 2025 and September 30, 2024, the Company had no cash collateral posted with derivative counterparties against its derivative obligations.

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

As of June 30, 2025 and September 30, 2024, the Company had no derivative financial instruments due to the wind down of the national mortgage banking operation.

Income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the three - and nine-month periods ended June 30, 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** <br>**June 30,**  | **Nine Months Ended** <br>**June 30,**  |
| *(In thousands)* | **2024** | **2024** |
| Interest rate lock commitments  | $— | $(268) |
| Forward mortgage loan sale contracts |  | 354 |
|  | $— | $86 |

---

There was no income (loss) related to derivative financial instruments included in mortgage banking income in the accompanying consolidated statements of income for the three - and nine - month periods ended June 30, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Regulatory Capital** 

The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks ("Basel III rules") became effective for the Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule through 2019. Under the Basel III rules, the Bank must hold a conservation buffer above the adequately capitalized risk-based capital ratios disclosed in the table below. The capital conservation buffer was 2.50% for 2024 and 2023. The Bank met all capital adequacy requirements to which it was subject as of June 30, 2025 and September 30, 2024.

As of June 30, 2025, the most recent notification from the Federal Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank's category.

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*(Unaudited)*

The Company's and Bank's actual capital amounts and ratios are also presented in the table. The Company is not subject to the Federal Reserve Bank's consolidated capital requirements because it has less than $3 billion in total consolidated assets. However, management has elected to disclose the Company's capital amounts and ratios in addition to the Bank's required disclosures in the table below. No amount was deducted from capital for interest-rate risk at either date.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Minimum To Be Well** | **Minimum To Be Well** |
|  |  |  | **Minimum**  | **Minimum**  | **Capitalized Under** | **Capitalized Under** |
|  |  |  | **For Capital** | **For Capital** | **Prompt Corrective** | **Prompt Corrective** |
|  | **Actual** | **Actual** | **Adequacy Purposes:** | **Adequacy Purposes:** | **Action Provisions:** | **Action Provisions:** |
|  | **Amount** | **Ratio** | **Amount** | **Ratio** | **Amount** | **Ratio** |
|  | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* |
| **As of June 30, 2025:** |  |  |  |  |  |  |
| Total capital (to risk-weighted assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $243137 | 12.63% | $154011 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;Bank | 239817 | 12.47 | 153845 | 8.00 | $192306 | 10.00% |
| Tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $193812 | 10.07% | $115508 | 6.00% | N/A | N/A |
| &nbsp;&nbsp;Bank | 219214 | 11.40 | 115383 | 6.00 | $153845 | 8.00% |
| Common equity tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $193812 | 10.07% | $86631 | 4.50% | N/A | N/A |
| &nbsp;&nbsp;Bank | 219214 | 11.40 | 86538 | 4.50 | $124999 | 6.50% |
| Tier 1 capital (to average adjusted total assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $193812 | 7.98% | $97189 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;Bank | 219214 | 9.03 | 97112 | 4.00 | $121390 | 5.00% |
| **As of September 30, 2024:** |  |  |  |  |  |  |
| Total capital (to risk-weighted assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $244214 | 12.53% | $155976 | 8.00% | N/A | N/A |
| &nbsp;&nbsp;Bank | 242041 | 12.42 | 155946 | 8.00 | $194932 | 10.00% |
| Tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $179325 | 9.20% | $116982 | 6.00% | N/A | N/A |
| &nbsp;&nbsp;Bank | 221755 | 11.38 | 116959 | 6.00 | $155946 | 8.00% |
| Common equity tier 1 capital (to risk-weighted assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $179325 | 9.20% | $87737 | 4.50% | N/A | N/A |
| &nbsp;&nbsp;Bank | 221755 | 11.38 | 87720 | 4.50 | $126706 | 6.50% |
| Tier 1 capital (to average adjusted total assets): |  |  |  |  |  |  |
| &nbsp;&nbsp;Consolidated | $179325 | 7.42% | $96607 | 4.00% | N/A | N/A |
| &nbsp;&nbsp;Bank | 221755 | 9.18 | 96590 | 4.00 | $120737 | 5.00% |

---

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Recent Accounting Pronouncements** 

The following are summaries of recently issued or adopted accounting pronouncements that impact the accounting and reporting practices of the Company:

In June 2022, the FASB issued ASU No. 2022-03, *Fair Value Measurements (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions*. The ASU clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. It also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted and the amendments in the ASU should be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. The adoption of the ASU did not have a material impact on the Company's consolidated financial position or results of operations.

In March 2023, the FASB issued ASU 2023-02, *Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method*, which allows an entity to elect to use the proportional amortization method to account for qualifying equity investments in tax credit structures that meet specified criteria, without regard to the underlying tax credit program. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company invested in a partnership that generates low-income housing tax credits and has accounted for this under proportional amortization with investment amortization expense recorded as a component of income tax expense. The Company's early adoption of this ASU effective October 1, 2023 did not result in any one-time cumulative-effect adjustment to retained earnings, have a material impact on the Company's consolidated financial position or results of operations, or impact prior periods.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures, which requires public entities to disclose information about their reportable segments' significant expenses on an interim and annual basis. Public entities are required to disclose significant expense categories and amounts for each reportable segment. Significant expense categories are derived from expenses that are regularly reported to an entity's chief operating decision-maker ("CODM"), and included in a segment's reported measures of profit or loss. Public entities are also required to disclose the title and position of the CODM and explain how the CODM uses the reported measures of profit or loss to assess segment performance. The ASU requires interim disclosures of certain segment-related disclosures that previously were only required annually. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted and the ASU should be applied prospectively. The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial position or results of operations.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures.* This standard establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements. Under the new guidance, entities must consistently categorize and provide greater disaggregation of information in the rate reconciliation. They must also further disaggregate income taxes paid. The ASU is effective for fiscal years beginning after December 15, 2024. The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial position or results of operations.

In November 2024, the FASB issued ASU 2024-03, *Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures*. This standard requires public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. The ASU is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The adoption of the ASU is not expected to have a material impact on the Company's consolidated financial position or results of operations.

The Company has determined that all other recently issued accounting pronouncements will not have a material impact on the Company's consolidated financial statements or do not apply to its operations.

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*(Unaudited)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Segment Reporting** 

The Company's operations include two primary segments: core banking and SBA lending. The core banking segment originates residential, commercial and consumer loans and attracts deposits from its customer base. Net interest income from loans and investments that are funded by deposits and borrowings is the primary revenue for the core banking segment. The SBA lending segment originates loans guaranteed by the SBA, subsequently selling the guaranteed portion to outside investors. Net gains on sales of loans, net servicing income and net interest income are the primary sources of revenue for the SBA lending segment.

The core banking segment is comprised primarily by the Bank and First Savings Investments, Inc., while the SBA lending segment's revenues are comprised primarily of net interest income and gains on the sales of SBA loans generated by Q2.

The following segment financial information has been derived from the internal financial statements of the Company which are used by management to monitor and manage financial performance. The accounting policies of these segments are the same as those of the Company *(dollars in thousands)*.

---

| | | | |
|:---|:---|:---|:---|
|  | **Core**<br>**Banking** | **SBA**<br>**Lending** | **Consolidated**<br>**Totals** |
| **Three Months Ended June 30, 2025:** |  |  |  |
| Net interest income  | $15086 | $1639 | $16725 |
| Provision (credit) for credit losses – loans | 420 | (73) | 347 |
| Provision for unfunded lending commitments | 32 | 45 | 77 |
| Credit for credit losses – securities | (1) |  | (1) |
| &nbsp;&nbsp;Total provision (credit) for credit losses | 451 | (28) | 423 |
| Net interest income after provision | 14635 | 1667 | 16302 |
| Net gains on sales of loans, SBA |  | 932 | 932 |
| Noninterest income | 3340 | 1180 | 4520 |
| Noninterest expense | 11366 | 2327 | 13693 |
| Income before taxes | 6609 | 520 | 7129 |
| Income tax expense | 835 | 128 | 963 |
| Segment profit | 5774 | 392 | 6166 |
| Non-cash items: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 557 | 33 | 590 |
| Segment assets at June 30, 2025 | 2313836 | 102839 | 2416675 |

---

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**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

---

| | | | |
|:---|:---|:---|:---|
|  | **Core**<br>**Banking** | **SBA**<br>**Lending** | **Consolidated**<br>**Totals** |
| **Nine Months Ended June 30, 2025:** |  |  |  |
| Net interest income | $43101 | $5077 | $48178 |
| Provision (credit) for credit losses - loans | (866) | 365 | (501) |
| Provision (credit) for unfunded lending commitments  | (8) | 254 | 246 |
| Credit for credit losses – securities  | (8) |  | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total provision (credit) for credit losses | (882) | 619 | (263) |
| Net interest income after provision | 43983 | 4458 | 48441 |
| Net gains on sales of loans, SBA |  | 2721 | 2721 |
| Noninterest income | 10835 | 3348 | 14183 |
| Noninterest expense | 35426 | 6908 | 42334 |
| Income before taxes | 19392 | 898 | 20290 |
| Income tax expense | 2180 | 220 | 2400 |
| Segment profit | 17212 | 678 | 17890 |
| Non-cash items: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1708 | 36 | 1744 |
| Segment assets at June 30, 2025 | 2313836 | 102839 | 2416675 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Core** <br>**Banking** | **SBA** <br>**Lending** | **Consolidated** <br>**Totals** |
| **Three Months Ended June 30, 2024:** |  |  |  |
| Net interest income  | $13590 | $944 | $14534 |
| Provision for credit losses – loans | 320 | 181 | 501 |
| Provision for unfunded lending commitments | 64 | 94 | 158 |
| Provision for credit losses - securities | 84 |  | 84 |
| &nbsp;&nbsp;Total provision for credit losses | 468 | 275 | 743 |
| Net interest income after provision | 13122 | 669 | 13791 |
| Net gains on sales of loans, SBA |  | 581 | 581 |
| Noninterest income | 2474 | 722 | 3196 |
| Noninterest expense | 10192 | 2239 | 12431 |
| Income (loss) before taxes | 5404 | (848) | 4556 |
| Income tax expense (benefit)  | 689 | (206) | 483 |
| Segment profit (loss) | 4715 | (642) | 4073 |
| Non-cash items: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 588 | 2 | 590 |
| Segment assets at June 30, 2024 | 2305240 | 88251 | 2393491 |

---

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

---

| | | | |
|:---|:---|:---|:---|
|  | **Core** <br>**Banking** | **SBA** <br>**Lending** | **Consolidated** <br>**Totals** |
| **Nine Months Ended June 30, 2024:** |  |  |  |
| Net interest income | $40169 | $2816 | $42985 |
| Provision for credit losses – loans  | 1238 | 446 | 1684 |
| Provision (credit) for unfunded lending commitments | (253) | 94 | (159) |
| Provision for credit losses – securities  | 107 |  | 107 |
| &nbsp;&nbsp;Total provision for credit losses | 1092 | 540 | 1632 |
| Net interest income after provision | 39077 | 2276 | 41353 |
| Net gains on sales of loans, SBA |  | 2366 | 2366 |
| Noninterest income | 6790 | 2898 | 9688 |
| Noninterest expense | 34178 | 6070 | 40248 |
| Income (loss) before taxes | 11689 | (896) | 10793 |
| Income tax expense (benefit)  | 1073 | (200) | 873 |
| Segment profit (loss) | 10616 | (696) | 9920 |
| Non-cash items: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1786 | 5 | 1791 |
| Segment assets at June 30, 2024 | 2305240 | 88251 | 2393491 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Revenue from Contracts with Customers** 

Substantially all of the Company's revenue from contracts with customers within the scope of FASB ASC 606 is included in the core banking segment and is recognized within noninterest income. The following table presents the Company's sources of noninterest income for the three - and nine-month periods ended June 30, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(In thousands)* | *(In thousands)* |  |  |
| In Scope for ASC 606 |  |  |  |  |
| Service charges on deposit accounts | $537 | $538 | $1645 | $1398 |
| ATM and interchange fees | 648 | 593 | 1945 | 1627 |
| Commission income | 184 | 220 | 649 | 662 |
| Other | 29 | 26 | 85 | 82 |
| &nbsp;&nbsp;Revenue from contracts with customers | 1398 | 1377 | 4324 | 3769 |
| Out of Scope for ASC 606 |  |  |  |  |
| Net unrealized gain on equity securities | 15 | 419 | 140 | 463 |
| Gain on sale of equity securities |  |  | 403 |  |
| Gain on sale of SBA loans | 932 | 581 | 2721 | 2366 |
| Net gain on sale of loans, home equity line of credit | 617 |  | 3109 |  |
| Mortgage banking income | 96 | 49 | 278 | 191 |
| Increase in cash value of life insurance | 358 | 353 | 1099 | 1015 |
| Real estate lease income | 132 | 154 | 375 | 384 |
| Other income | 972 | 263 | 1734 | 1500 |
| &nbsp;&nbsp;Other noninterest income | 3122 | 1819 | 9859 | 5919 |
| &nbsp;&nbsp;Total noninterest income | $4520 | $3196 | $14183 | $9688 |

---

A description of the Company's revenue streams accounted for under ASC 606 follows:

[**Table of Contents**](#TOC)

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED**

*(Unaudited)*

***Service Charges on Deposit Accounts***: The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Transaction-based fees, which include services such as wire fees, stop payment charges, statement rendering, and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized when the overdraft occurs.

***ATM and Interchange Fees***: The Company earns ATM usage fees and interchange fees from debit cardholder transactions conducted through a payment network. ATM fees are recognized when the transaction occurs. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The costs of related loyalty rewards programs are netted against interchange income as a direct cost of the revenue generating activity.

***Commission Income***: The Company earns trust, insurance commissions, brokerage commissions and annuities income from its contracts with customers to manage assets for investment, and/or to transact on their accounts. These fees are primarily earned over time as the Company provides the contracted services and are generally assessed based on the market value of assets under management. Fees that are transaction based, including trade execution services, are recognized when the transaction is executed. Other related fees, which are based on a fixed fee schedule, are recognized when the services are rendered.

***Other Income***: Other income from contracts with customers primarily includes check cashing and cashier's check fees, safe deposit box fees and cash advance fees. This revenue is recognized at the time the transaction is executed or over the period the Company satisfies the performance obligation.

**14.** **Mortgage Banking Income**

The components of mortgage banking income for the three - and nine-month periods ended June 30, 2025 and 2024 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Nine Months Ended**  | **Nine Months Ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
|  | *(In thousands)* | *(In thousands)* |  |  |
| Origination and sale of mortgage loans (1) | $51 | $60 | $110 | $(1142) |
| Mortgage brokerage income |  |  | 27 | 31 |
| Net change in fair value of loans held for sale and interest rate lock commitments |  | 7 |  | (297) |
| Realized and unrealized gains (losses) from Forward sales commitments |  |  |  | 354 |
| Capitalized residential mortgage loan servicing rights |  |  |  | 509 |
| Net change in fair value of residential mortgage loan servicing rights |  |  |  | (809) |
| Provisions for loan repurchases and indemnifications | 45 | (6) | 138 | 13 |
| Net loan servicing income |  | (12) | 3 | 1532 |
| &nbsp;&nbsp;Total mortgage banking income | $96 | $49 | $278 | $191 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes origination fees and realized gains and losses on the sale of mortgage loans in the secondary market.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

#### Safe Harbor Statement for Forward-Looking Statements
This report 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 being materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, our service providers, and on the economy and financial markets, general economic conditions, including the effects of inflation, changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; the quality and composition of the loan and investment securities portfolio; loan demand; deposit flows; competition; and changes in accounting principles and guidelines. Additional factors that may affect our results are discussed herein and in our Annual Report on Form 10-K, for the year ended September 30, 2024 under "Part II, Item 1A. Risk Factors." These factors should be considered in evaluating the forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company assumes no obligation and disclaims any obligation to update any forward-looking statements.

**Critical Accounting Policies; Critical Accounting Estimates**

During the nine-month period ended June 30, 2025, there was no significant change in the Company's critical accounting policies or the application of critical accounting policies as disclosed in the Company's Annual Report on Form 10-K, for the year ended September 30, 2024.

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

***Cash and Cash Equivalents.*** Cash and cash equivalents totaled $52.1 million at June 30, 2025 and September 30, 2024.

***Loans.*** Net loans receivable decreased $68.0 million, from $1.96 billion at September 30, 2024 to $1.90 billion at June 30, 2025, due primarily to the transfer to loans held for sale and subsequent bulk sale of approximately $87.2 million of residential real estate home equity line of credit loans during the period.

***Loans Held for Sale.*** Loans held for sale increased $35.3 million, from $25.7 million at September 30, 2024 to $61.0 million at June 30, 2025, primarily due to an increase in residential mortgage loans held for sale of $42.1 million. The increase in residential mortgage loans held for sale is primarily due to an increase in home equity line of credit loans held for sale during the period.

***Securities Available for Sale.*** Securities available for sale decreased $5.3 million, from $248.7 million at September 30, 2024 to $243.4 million at June 30, 2025, due to net decreases in fair value of $11.2 million, calls and maturities of $3.7 million and principal repayments of $4.3 million, partially offset by purchases of $14.2 million. The decreases in fair value were primarily due to increasing long term market interest rates during the nine-months ended June 30, 2025, which resulted in a decrease in the fair value of debt securities available for sale.

***Securities Held to Maturity.*** Investment securities held to maturity decreased $167,000 due primarily to calls and maturities during the period.

***Deposits.*** Total deposits decreased $144.7 million from $1.88 billion at September 30, 2024 to $1.74 billion at June 30, 2025, primarily due to a decrease in brokered deposits of $229.1 million, partially offset by increases in money market accounts, interest-bearing demand deposit accounts and noninterest bearing demand deposit accounts of $87.4 million, $25.2 million and $11.1 million, respectively.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

***FHLB Borrowings.*** Borrowings from the FHLB increased $133.3 million, from $301.6 million at September 30, 2024 to $434.9 million at June 30, 2025. Borrowings were utilized in place of brokered deposits, which decreased as noted under Deposits.

***Stockholders' Equity.*** Stockholders' equity increased $6.7 million from $177.1 million at September 30, 2024 to $183.8 million at June 30, 2025, due primarily to a $14.6 million increase in retained net income, partially offset by a $8.9 million increase in accumulated other comprehensive loss. At June 30, 2025 and September 30, 2024, the Bank was considered "well-capitalized" under applicable regulatory capital guidelines.

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

***Overview.*** The Company reported net income of $6.2 million, or $0.88 per diluted share, for the three-month period ended June 30, 2025 compared to net income of $4.1 million, or $0.60 per diluted share, for the three-month period ended June 30, 2024.

***Net Interest Income.*** Net interest income increased $2.2 million, or 15.1%, for the three-month period ended June 30, 2025 as compared to the same period in 2024. Average interest-earning assets increased $45.5 million and average interest-bearing liabilities increased $37.1 million when comparing the two periods. The tax-equivalent net interest margin was 2.99% for 2025 compared to 2.67% for 2024.

Total interest income increased $871,000 when comparing the two periods due primarily to an increase in the average balance of interest-earning assets of $45.5 million, from $2.25 billion for 2024 to $2.30 billion for 2025, and an increase in the average tax equivalent yield on interest-earning assets from 5.60% for 2024 to 5.65% for 2025. The increase in the average balance of interest-earning assets was due primarily to a $48.9 million increase in the average balance of total loans.

Total interest expense decreased $1.3 million due to a decrease in the average cost of interest-bearing liabilities from 3.36% for 2024 to 3.03% for 2025, partially offset by an increase in the average balance of interest-bearing liabilities of $37.1 million, from $1.97 billion for 2024 to $2.01 billion for 2025. The decrease in the average cost of interest-bearing liabilities for 2025 was due primarily to lower rates for brokered deposits and money market deposit accounts as a result of decreased market interest rates and resulting lower short term U.S. Treasury rates.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

***Average Balance Sheets.*** The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs for the three-month periods ended June 30, 2025 and 2024. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances presented are daily averages. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material. Tax exempt income on loans and investment securities have been adjusted to a tax equivalent basis using a federal marginal tax rate of 21%.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  | **Three Months Ended June 30,**  |
|  |  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  |  | | | | | | |
|  |  | <br>**Average**<br>**Balance** | **Interest**<br>**and**<br>**Dividends** | <br>**Yield/**<br>**Cost** | <br>**Average**<br>**Balance** | **Interest**<br>**and**<br>**Dividends** | <br>**Yield/**<br>**Cost** |
|  |  | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* |
| Assets: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest-bearing deposits with banks |  | $15889 | $145 | 3.65% | $26100 | $324 | 4.97% |
| &nbsp;&nbsp;Loans (1) |  | 1992567 | 29214 | 5.86 | 1943716 | 28155 | 5.79 |
| &nbsp;&nbsp;Investment securities – taxable |  | 104169 | 947 | 3.64 | 101350 | 918 | 3.62 |
| &nbsp;&nbsp;Investment securities – nontaxable (1) |  | 162017 | 1733 | 4.28 | 157991 | 1665 | 4.22 |
| &nbsp;&nbsp;FRB and FHLB stock |  | 24993 | 416 | 6.66 | 24986 | 519 | 8.31 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets |  | 2299635 | 32455 | 5.65 | 2254143 | 31581 | 5.60 |
| &nbsp;&nbsp;Noninterest-earning assets |  | 112308 |  |  | 119998 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets |  | $2411943 |  |  | $2374141 |  |  |
| Liabilities and equity: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;NOW accounts |  | $362869 | $763 | 0.84% | $321874 | $618 | 0.77% |
| &nbsp;&nbsp;Money market deposit accounts |  | 446910 | 4046 | 3.62 | 356511 | 3408 | 3.82 |
| &nbsp;&nbsp;Savings accounts |  | 149142 | 50 | 0.13 | 158051 | 50 | 0.13 |
| &nbsp;&nbsp;Time deposits |  | 578327 | 5742 | 3.97 | 736435 | 8664 | 4.71 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits |  | 1537248 | 10601 | 2.76 | 1572871 | 12740 | 3.24 |
| &nbsp;&nbsp;FHLB borrowings |  | 437371 | 4149 | 3.79 | 351227 | 3021 | 3.44 |
| &nbsp;&nbsp;Subordinated debt and other borrowings |  | 35070 | 490 | 5.59 | 48537 | 799 | 6.58 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities |  | 2009689 | 15240 | 3.03 | 1972635 | 16560 | 3.36 |
| &nbsp;&nbsp;Noninterest-bearing deposits |  | 186556 |  |  | 193230 |  |  |
| &nbsp;&nbsp;Other noninterest-bearing liabilities |  | 35175 |  |  | 43052 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities |  | 2231420 |  |  | 2208917 |  |  |
| &nbsp;&nbsp;Total stockholders' equity |  | 180523 |  |  | 165224 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity |  | $2411943 |  |  | $2374141 |  |  |
| &nbsp;&nbsp;Net interest income (taxable equivalent basis) |  |  | 17215 |  |  | 15021 |  |
| &nbsp;&nbsp;Less: taxable equivalent adjustment |  |  | (490) |  |  | (487) |  |
| &nbsp;&nbsp;Net interest income |  |  | $16725 |  |  | $14534 |  |
| &nbsp;&nbsp;Interest rate spread (taxable equivalent basis) |  |  |  | 2.62% |  |  | 2.24% |
| &nbsp;&nbsp;Net interest margin (taxable equivalent basis) |  |  |  | 2.99% |  |  | 2.67% |
| &nbsp;&nbsp;Average interest-earning assets to average interest-bearing liabilities |  |  |  | 114.43% |  |  | 114.27% |

---

(1) Item impacted by tax equivalent adjustment

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

***Rate/Volume Analysis.*** The following table sets forth the effects of changing rates and volumes on our net interest income on a tax equivalent basis for the three-month periods ended June 30, 2025 and 2024. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each.

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** | **Three Months Ended June 30, 2025** |
|  | **Compared to** | **Compared to** | **Compared to** |
|  | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** | **Three Months Ended June 30, 2024** |
|  | **Increase (Decrease)** | **Increase (Decrease)** | **Increase (Decrease)** |
|  | **Due to** | **Due to** | **Due to** |
|  | **Rate** | **Volume** | **Net** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Interest income: |  |  |  |
| &nbsp;&nbsp;Interest-bearing deposits with banks | $(69) | $(110) | $(179) |
| &nbsp;&nbsp;Loans  | 348 | 711 | 1059 |
| &nbsp;&nbsp;Investment securities - taxable | 3 | 26 | 29 |
| &nbsp;&nbsp;Investment securities - nontaxable | 25 | 43 | 68 |
| &nbsp;&nbsp;FRB and FHLB stock | (103) |  | (103) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 204 | 670 | 874 |
| Interest expense: |  |  |  |
| &nbsp;&nbsp;Deposits | (1872) | (267) | (2139) |
| &nbsp;&nbsp;Borrowings from FHLB | 349 | 779 | 1128 |
| &nbsp;&nbsp;Subordinated debt | (105) | (205) | (310) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | (1628) | 307 | (1321) |
| &nbsp;&nbsp;Net increase in net interest income (taxable equivalent basis) | $1832 | $363 | $2195 |

---

***Provision for Credit Losses.*** The Company recognized a provision for credit losses for loans and unfunded lending commitments of $347,000 and $77,000, respectively, and a credit for credit losses for securities of $1,000 for the three months ended June 30, 2025, compared to a provision for credit losses for loans, unfunded lending commitments and securities of $501,000, $158,000 and $84,000, respectively, for the same period in 2024.

The Company recognized net charge-offs of $309,000 for the three-month period ended June 30, 2025 compared to net charge-offs of $105,000 for the same period in 2024.

***Noninterest Income***. Noninterest income increased $1.3 million for the three-month period ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to an increase in net gain on sale of home equity lines of credit, other income and net gain on sale of SBA loans of $617,000, $565,000 and $351,000 respectively, partially offset by a $404,000 decrease in net unrealized gain on sale of equity securities. The increase in gain on sale of home equity lines of credit was due to a lack of sales in the 2024 period as the sale of this product commenced in fiscal 2025. The increase in other income was primarily due to a $487,000 gain recognized in connection with a lease termination.

***Noninterest Expense.*** Noninterest expense increased $1.3 million for the three-month period ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to an increase in compensation and benefits of $904,000, which was due to routine salary increases and increases in bonus and incentive accruals in 2025 due to stronger Company performance.

***Income Tax Expense***. The Company recognized income tax expense of $963,000 for the three-month period ended June 30, 2025 as compared to $483,000 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 13.5% compared to 10.6% 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.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

**Results of Operations for the Nine Months Ended June 30, 2025 and 2024**

***Overview.*** The Company reported net income of $17.9 million, or $2.57 per diluted share, for the nine-month period ended June 30, 2025 compared to net income of $9.9 million, or $1.45 per diluted share, for the nine-month period ended June 30, 2024.

***Net Interest Income.*** Net interest income increased $5.2 million, or 12.1%, for the nine-month period ended June 30, 2025 as compared to the same period in 2024. Average interest-earning assets increased $74.0 million and average interest-bearing liabilities increased $77.7 million when comparing the two periods. The tax-equivalent net interest margin was 2.89% for 2025 compared to 2.67% for 2024.

Total interest income increased $5.5 million when comparing the two periods due primarily to an increase in the average balance of interest-earning assets of $74.0 million, from $2.22 billion for 2024 to $2.29 billion for 2025, and an increase in the average tax equivalent yield on interest-earning assets from 5.49% for 2024 to 5.63% for 2025. The increase in the average balance of interest-earning assets was due primarily to a $78.1 million increase in the average balance of total loans.

Total interest expense increased $279,000 due to an increase in the average balance of interest-bearing liabilities of $77.7 million, from $1.93 billion for 2024 to $2.00 billion for 2025, partially offset by a decrease in the average cost of interest-bearing liabilities from 3.24% for 2024 to 3.13% for 2025.

***Average Balance Sheets.*** The following table presents information regarding average balances of assets and liabilities, the total dollar amounts of interest income and dividends from average interest-earning assets, the total dollar amounts of interest expense on average interest-bearing liabilities, and the resulting annualized average yields and costs for the nine-month periods ended June 30, 2025 and 2024. The yields and costs for the periods indicated are derived by dividing income or expense by the average balances of assets or liabilities, respectively, for the periods presented. Average balances presented are daily averages. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and are not material. Tax exempt income on loans and investment securities have been adjusted to a tax equivalent basis using a federal marginal tax rate of 21%.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Nine Months Ended June 30,**  | **Nine Months Ended June 30,**  | **Nine Months Ended June 30,**  | **Nine Months Ended June 30,**  | **Nine Months Ended June 30,**  | **Nine Months Ended June 30,**  |
|  | **2025** | **2025** | **2025** | **2024** | **2024** | **2024** |
|  | <br>**Average** <br>**Balance** | **Interest**<br> **and** <br>**Dividends** | <br>**Yield/** <br>**Cost** | <br>**Average** <br>**Balance** | **Interest** <br>**and** <br>**Dividends** | <br>**Yield/** <br>**Cost** |
|  | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* |
| Assets: |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest-bearing deposits with banks | $16314 | $523 | 4.27% | $23668 | $834 | 4.70% |
| &nbsp;&nbsp;Loans (2) | 1983229 | 86828 | 5.84 | 1905152 | 81443 | 5.70 |
| &nbsp;&nbsp;Investment securities – taxable | 102955 | 2782 | 3.60 | 102596 | 2784 | 3.62 |
| &nbsp;&nbsp;Investment securities – nontaxable (2) | 161506 | 5167 | 4.27 | 158624 | 5014 | 4.21 |
| &nbsp;&nbsp;FRB and FHLB stock | 24989 | 1420 | 7.58 | 24980 | 1092 | 5.83 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 2288993 | 96720 | 5.63 | 2215020 | 91167 | 5.49 |
| &nbsp;&nbsp;Noninterest-earning assets | 116251 |  |  | 124873 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2405244 |  |  | $2339893 |  |  |
| Liabilities and equity: |  |  |  |  |  |  |
| &nbsp;&nbsp;NOW accounts | $352097 | $2242 | 0.85% | $323883 | $1858 | 0.76% |
| &nbsp;&nbsp;Money market deposit accounts | 417878 | 11397 | 3.64 | 326077 | 9052 | 3.70 |
| &nbsp;&nbsp;Savings accounts | 150381 | 148 | 0.13 | 162054 | 161 | 0.13 |
| &nbsp;&nbsp;Time deposits | 700198 | 22489 | 4.28 | 691324 | 24205 | 4.67 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing deposits | 1620554 | 36276 | 2.98 | 1503338 | 35276 | 3.13 |
| &nbsp;&nbsp;FHLB borrowings | 340154 | 8767 | 3.44 | 375336 | 9088 | 3.23 |
| &nbsp;&nbsp;Subordinated debt and other borrowings | 44114 | 2016 | 6.09 | 48497 | 2416 | 6.64 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | 2004822 | 47059 | 3.13 | 1927171 | 46780 | 3.24 |
| &nbsp;&nbsp;Noninterest-bearing deposits | 185465 |  |  | 205971 |  |  |
| &nbsp;&nbsp;Other noninterest-bearing liabilities | 35936 |  |  | 46099 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2226223 |  |  | 2179241 |  |  |
| &nbsp;&nbsp;Total stockholders' equity | 179021 |  |  | 160652 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $2405244 |  |  | $2339893 |  |  |
| &nbsp;&nbsp;Net interest income (taxable equivalent basis) |  | 49661 |  |  | 44387 |  |
| &nbsp;&nbsp;Less: taxable equivalent adjustment |  | (1483) |  |  | (1402) |  |
| &nbsp;&nbsp;Net interest income |  | $48178 |  |  | $42985 |  |
| &nbsp;&nbsp;Interest rate spread (taxable equivalent basis) |  |  | 2.50% |  |  | 2.25% |
| &nbsp;&nbsp;Net interest margin (taxable equivalent basis) |  |  | 2.89% |  |  | 2.67% |
| &nbsp;&nbsp;Average interest-earning assets to average interest-bearing liabilities |  |  | 114.17% |  |  | 114.94% |

---

(2) Item impacted by tax equivalent adjustment

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

***Rate/Volume Analysis.*** The following table sets forth the effects of changing rates and volumes on our net interest income on a tax equivalent basis for the nine-month periods ended June 30, 2025 and 2024. The rate column shows the effects attributable to changes in rate (changes in rate multiplied by prior volume). The volume column shows the effects attributable to changes in volume (changes in volume multiplied by prior rate). The net column represents the sum of the prior columns. Changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each.

---

| | | | |
|:---|:---|:---|:---|
|  | **Nine Months Ended June 30, 2025** | **Nine Months Ended June 30, 2025** | **Nine Months Ended June 30, 2025** |
|  | **Compared to**  | **Compared to**  | **Compared to**  |
|  | **Nine Months Ended June 30, 2024** | **Nine Months Ended June 30, 2024** | **Nine Months Ended June 30, 2024** |
|  | **Increase (Decrease)**  | **Increase (Decrease)**  | **Increase (Decrease)**  |
|  | **Due to** | **Due to** | **Due to** |
|  | **Rate** | **Volume** | **Net** |
|  | *(In thousands)* | *(In thousands)* | *(In thousands)* |
| Interest income: |  |  |  |
| &nbsp;&nbsp;Interest-bearing deposits with banks | $(64) | $(247) | $(311) |
| &nbsp;&nbsp;Loans | 2006 | 3379 | 5385 |
| &nbsp;&nbsp;Investment securities – taxable | (12) | 10 | (2) |
| &nbsp;&nbsp;Investment securities – nontaxable | 61 | 92 | 153 |
| &nbsp;&nbsp;FRB and FHLB stock | 328 |  | 328 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-earning assets | 2319 | 3234 | 5553 |
| Interest expense: |  |  |  |
| &nbsp;&nbsp;Deposits | (1686) | 2686 | 1000 |
| &nbsp;&nbsp;Borrowings from FHLB | 559 | (880) | (321) |
| &nbsp;&nbsp;Subordinated debt | (192) | (209) | (401) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total interest-bearing liabilities | (1319) | 1597 | 278 |
| &nbsp;&nbsp;Net increase in net interest income (taxable equivalent basis) | $3638 | $1637 | $5275 |

---

***Provision for Credit Losses.*** The Company recognized a credit for credit losses for loans and securities of $501,000 and $8,000, respectively, and a provision for unfunded lending commitments of $246,000 for the nine months ended June 30, 2025, compared to a provision for credit losses for loans and securities of $1.7 million and $107,000, respectively, and a credit for unfunded lending commitments of $159,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of first lien home equity line of credit loans during the period and a decrease in qualitative reserves. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $1.7 million from $16.9 million at September 30, 2024 to $15.2 million at June 30, 2025.

The Company recognized net charge-offs of $271,000 for the nine-month period ended June 30, 2025 compared to net charge-offs of $224,000 for the same period in 2024.

***Noninterest Income***. Noninterest income increased $4.5 million for the nine-month period ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to a $3.1 million net gain on sale of home equity lines of credit, a $403,000 net gain on the sale of equity securities and a $487,000 gain recognized in connection with a lease termination in 2025 with no corresponding amounts for 2024.

***Noninterest Expense.*** Noninterest expense increased $2.1 million for the nine-month period ended June 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 $1.4 million and $1.1 million, respectively, partially offset by a decrease in professional fees of $412,000. The increase in compensation and benefits is primarily due to routine salary increases and increases in bonus and incentive accruals in 2025 due to stronger Company performance. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in 2024 with no corresponding amount for the 2025 period and a $405,000 accrued contingent liability associated with

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

employee benefits recognized in 2025 with no corresponding amount in 2024. The decrease in professional fees is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

***Income Tax Expense***. The Company recognized income tax expense of $2.4 million for the nine-month period ended June 30, 2025 as compared to $873,000 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 11.8% compared to 8.1%. 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.

**Liquidity and Capital Resources**

***Liquidity Management.*** Liquidity is the ability to meet current and future financial obligations of a short-term nature. The Bank's primary sources of funds are customer deposits, proceeds from loan repayments, maturing securities and FHLB borrowings. While loan repayments and maturities are a predictable source of funds, deposit flows and mortgage prepayments are greatly influenced by market interest rates, general economic conditions and competition. At June 30, 2025, the Bank had cash and cash equivalents of $52.1 million and securities available-for-sale with a fair value of $243.4 million, including $134.2 million that are unpledged. If the Bank requires funds beyond its ability to generate them internally, it has additional borrowing capacity with the FHLB, borrowing capacity on federal funds purchased lines of credit facilities with other financial institutions, additional collateral eligible for repurchase agreements and borrowing capacity with the Federal Reserve Discount Window. At June 30, 2025, the Bank had the ability to borrow a total of $800.0 million from the FHLB, of which $434.9 million was borrowed and outstanding. In addition, the Bank had the ability to borrow the lesser of $20 million or 25% of the Bank's equity capital, excluding reserves, using a federal funds purchased line of credit facility with another financial institution at June 30, 2025. The Bank also had three other federal funds line of credit facilities with other financial institutions from which we had the ability to borrow the lesser of $5.0 million or 50% of the Bank's equity capital, $22 million and $15 million, respectively. The Bank did not have any outstanding federal funds purchased at June 30, 2025. At June 30, 2025 the Bank had the ability to borrow up to $52.2 million from the Federal Reserve using the Discount Window. The Bank had no Federal Reserve borrowings at June 30, 2025.

The Bank's primary investing activity is the origination of commercial real estate and one-to-four family mortgage loans and, to a lesser extent, consumer, multi-family, commercial business and residential and commercial real estate construction loans. The Bank also invests in U.S. government agency and sponsored enterprises securities, mortgage-backed securities and collateralized mortgage obligations issued by U.S. government agencies and sponsored enterprises, and municipal bonds.

The Bank must maintain an adequate level of liquidity to ensure the availability of sufficient funds to support loan growth and deposit withdrawals, to satisfy financial commitments and to take advantage of investment opportunities. Historically, the Bank has been able to retain a significant amount of its deposits as they mature. If these maturing deposits do not remain with the Bank, we will be required to seek other sources of funds, including other certificates of deposit and borrowings. As of June 30, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were estimated to be $608.3 million, or 35.0% of total deposits. When excluding Indiana public funds accounts, total uninsured deposits were estimated to be $248.3 million, or 14.3% of total deposits, as of June 30, 2025.

The Company is a separate legal entity from the Bank and must provide for its own liquidity to pay its operating expenses and other financial obligations, to pay any dividends and to repurchase any of its outstanding common stock. The Company's primary source of income is dividends received from the Bank. The amount of dividends that the Bank may declare and pay to the Company in any calendar year cannot exceed net income for that year to date plus retained net income (as defined) for the preceding two calendar years. At June 30, 2025, the Company (unconsolidated basis) had liquid assets of $3.0 million.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 2**

**MANAGEMENT'S DISCUSSION AND**

**ANALYSIS OF FINANCIAL CONDITION AND**

**RESULTS OF OPERATIONS**

***Capital Management.*** The Bank is required to maintain specific amounts of capital pursuant to regulatory requirements. As of June 30, 2025, the Bank was in compliance with all regulatory capital requirements that were effective as of such date, with Tier 1 capital (to average total assets), common equity Tier 1 capital (to risk-weighted assets), Tier 1 capital (to risk-weighted assets) and total capital (to risk-weighted assets) ratios of 9.03%, 11.40%, 11.40% and 12.47%, respectively. The regulatory requirements at that date were 5.0%, 6.5%, 8.0% and 10.0%, respectively, in order to be categorized as "well capitalized" under prompt corrective action provisions. At June 30, 2025, the Bank was considered "well-capitalized" under applicable regulatory guidelines.

#### Off-Balance Sheet Arrangements
In the normal course of operations, the Company engages in a variety of financial transactions that, in accordance with GAAP, are not recorded on the Company's financial statements. These transactions involve, to varying degrees, elements of credit, interest rate and liquidity risk. Such transactions are primarily used to manage customers' requests for funding and take the form of loan commitments and letters of credit. A further presentation of the Company's off-balance sheet arrangements is presented in the Company's Annual Report on Form 10-K, for the year ended September 30, 2024.

For the nine-month period ended June 30, 2025, the Company did not engage in any off-balance sheet transactions reasonably likely to have a material effect on the Company's consolidated financial condition, results of operations or cash flows.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I – ITEM 3**

**QUANTITATIVE AND QUALITATIVE DISCLOSURES**

**ABOUT MARKET RISK**

**Qualitative Aspects of Market Risk**. Market risk is the risk that the estimated fair value of our assets, liabilities, and derivative financial instruments will decline as a result of changes in interest rates or financial market volatility, or that our net income will be significantly reduced by interest rate changes.

The Company's principal financial objective is to achieve long-term profitability while reducing its exposure to fluctuating market interest rates by operating within acceptable limits established for interest rate risk and maintaining adequate levels of funding and liquidity. The Company has sought to reduce the exposure of its earnings to changes in market interest rates by attempting to manage the mismatch between asset and liability maturities and interest rates. In order to reduce the exposure to interest rate fluctuations, the Company has developed strategies to manage its liquidity, shorten its effective maturities of certain interest-earning assets and decrease the interest rate sensitivity of its asset base. Management has sought to decrease the average maturity of its assets by emphasizing the origination of short-term residential mortgage, commercial mortgage and commercial business loans, which are retained by the Company for its portfolio, and by generally selling all fixed rate residential mortgage loans in the secondary market. The Company relies on retail deposits as its primary source of funds. Management believes the primary use of retail deposits, complimented with a modest allocation of brokered and reciprocal certificates of deposit and FHLB borrowings, reduce the effects of interest rate fluctuations because they generally represent a more stable source of funds.

**Quantitative Aspects of Market Risk**. Potential cash flows, sales, or replacement value of many of our assets and liabilities, especially those that earn or pay interest, are sensitive to changes in the general level of interest rates. This interest rate risk arises primarily from our normal business activities of gathering deposits and extending loans. Many factors affect our exposure to changes in interest rates, such as general economic and financial conditions, customer preferences, historical pricing relationships, and re-pricing characteristics of financial instruments. Our earnings can also be affected by the monetary and fiscal policies of the U.S. Government and its agencies, particularly the Federal Reserve Board. Furthermore, the Company does not engage in hedging activities (other than the use of forward mortgage loan sale contracts in connection with our mortgage banking activities) or purchase high-risk derivative instruments, and also is not subject to foreign currency exchange rate risk or commodity price risk.

An element in our ongoing process is to measure and monitor interest rate risk using a Net Interest Income at Risk simulation to model the interest rate sensitivity of the balance sheet and to quantify the impact of changing interest rates on the Company. The model quantifies the effects of various possible interest rate scenarios on projected net interest income over a one-year horizon. The model assumes a semi-static balance sheet and measures the impact on net interest income relative to a base case scenario of hypothetical changes in interest rates over twelve months and provides no effect given to any steps that management might take to counter the effect of the interest rate movements. The scenarios include prepayment assumptions, changes in the level of interest rates, the shape of the yield curve, and spreads between market interest rates in order to capture the impact from re-pricing, yield curve, option, and basis risks.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART I - ITEM 3**

**QUANTITATIVE AND QUALITATIVE DISCLOSURES**

**ABOUT MARKET RISK**

Results of our simulation modeling, which assumes an immediate and sustained parallel shift in market interest rates, project that the Company's net interest income could change as follows over a one-year horizon, relative to our base case scenario:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| |  | **At June 30, 2025** | **At June 30, 2025** | **At September 30, 2024** | **At September 30, 2024** |
| |  | **One Year Horizon** | **One Year Horizon** | **One Year Horizon** | **One Year Horizon** |
| <br>**Immediate Change**<br>**in the Level**<br>**of Interest Rates** |  | **Dollar**<br>**Change** | **Percent**<br>**Change** | **Dollar**<br>**Change** | **Percent**<br>**Change** |
|  |  | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* | *(Dollars in thousands)* |
| 300bp |  | $(8784) | (12.38)% | $(6833) | (10.11)% |
| 200bp |  | (6010) | (8.47) | (4475) | (6.62) |
| 100bp |  | (3233) | (4.56) | (2486) | (3.68) |
| (100)bp |  | 3679 | 5.18 | 3209 | 4.75 |
| (200)bp |  | 7337 | 10.34 | 6339 | 9.38 |

---

At June 30, 2025, our simulated exposure to an increase in interest rates shows that an immediate and sustained increase in rates of 1.00% would decrease our net interest income by $3.2 million, or 4.56%, over a one year horizon compared to a flat interest rate scenario. Furthermore, rate increases of 2.00% and 3.00% would cause net interest income to decrease by 8.47% and 12.38%, respectively. An immediate and sustained decrease in rates of 1.00% would increase our net interest income by $3.7 million, or 5.18%, over a one year horizon compared to a flat interest rate scenario while a rate decrease of 2.00% would cause our net interest income to increase by 10.34%. All estimated changes presented in the above table are within policy guidelines approved by the Company's Board of Directors.

[**Table of Contents**](#TOC)

#### FIRST SAVINGS FINANCIAL GROUP, INC.

#### PART I - ITEM 4

#### CONTROLS AND PROCEDURES

#### Controls and Procedures
**Evaluation of Disclosure Controls and Procedures.** The Company's management, including the Company's principal executive officer and principal financial officer, have evaluated the effectiveness of the Company's "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended, (the "Exchange Act"). Based upon their evaluation, as of June 30, 2025, the principal executive officer and principal financial officer have concluded that the Company's disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (the "SEC") (1) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and (2) is accumulated and communicated to the Company's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

**Changes in Internal Controls.** There have been no changes in our internal control over financial reporting that occurred during the three -months ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART II**

**OTHER INFORMATION**

---

| | |
|:---|:---|
| **Item 1.** | **Legal Proceedings** |

---

Periodically, there have been various claims and lawsuits involving the Bank, primarily as plaintiff, such as claims to enforce liens, condemnation proceedings on properties in which the Bank holds security interests, claims involving the making and servicing of real property loans and other issues incident to the Bank's business. As of June 30, 2025, the Company is not a party to any legal proceedings that we believe require disclosure; warrant the accrual of a loss contingency; or would have a material adverse effect the Company's consolidated financial condition, results of operations, or cash flow.

**Item 1A. Risk Factors**

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1A. Risk Factors" in our Annual Report on Form 10-K, for the year ended September 30, 2024 which could materially affect our business, financial condition or future results. There have been no material changes to the risk factors described in our Annual Report on Form 10-K. However, these are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, consolidated financial condition and/or results of operations.

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART II**

#### OTHER INFORMATION

---

| | |
|:---|:---|
| **Item 2.** | **Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities** |

---

The following table presents information regarding the Company's stock repurchase activity during the quarter ended June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Period** | <br>**(a)**<br>**Total number of**<br>**shares (or units)**<br>**purchased** | <br>**(b)**<br>**Average price**<br>**paid per share**<br>**(or unit)** | **(c)**<br>**Total number of shares**<br>**(or units) purchased as**<br>**part of publicly**<br>**announced plans or**<br>**programs (1)** | **(d)**<br>**Maximum number (or** <br>**appropriate dollar value) of**<br>**shares (or units) that may yet**<br>**be purchased under the plans**<br>**or programs** |
| April 1, 2025 through April 30, 2025 |  | $— |  | 10086 |
| May 1, 2025 through May 31, 2025 | 1428 | $27.64 | 1428 | 8658 |
| June 1, 2025 through June 30, 2025 |  | $— |  | 8658 |
| Total | 1428 | $27.64 | 1428 | 8658 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) On August 16, 2021, the Company announced that its Board of Directors authorized a stock repurchase program to acquire up to 356,220 shares, or 5.0% of the Company's outstanding common stock. This replaces the previously existing stock repurchase program announced by the Company on November 16, 2012, which had 346,776 shares (split-adjusted) remaining for repurchase.

---

| | |
|:---|:---|
| **Item 3.** | **Defaults upon Senior Securities** |

---

Not applicable.

---

| | |
|:---|:---|
| **Item 4.** | **Mine Safety Disclosures** |

---

Not applicable.

---

| | |
|:---|:---|
| **Item 5.** | **Other Information** |

---

During the three months ended June 30, 2025, none of the Company's directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of the Company's securities that was intended to satisfy the affirmative defense conditions of SEC Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement " (as such term is defined in Item 408 of SEC Regulation S-K).

[**Table of Contents**](#TOC)

**FIRST SAVINGS FINANCIAL GROUP, INC.**

**PART II**

---

| | |
|:---|:---|
| **Item 6.** | **Exhibits** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | |
|:---|:---|
| 31.1 | [Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer](fsfg-20250630xex31d1.htm) |
| 31.2 | [Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer](fsfg-20250630xex31d2.htm) |
| 32.1 | [Section 1350 Certification of Chief Executive Officer](fsfg-20250630xex32d1.htm) |
| 32.2 | [Section 1350 Certification of Chief Financial Officer](fsfg-20250630xex32d2.htm) |
| 101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statement of Changes in Stockholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) related notes |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

[**Table of Contents**](#TOC)

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  |  | FIRST SAVINGS FINANCIAL GROUP, INC. | FIRST SAVINGS FINANCIAL GROUP, INC. |
|  |  | (Registrant) | (Registrant) |
| **Dated** | August 8, 2025 | **BY**: | &nbsp;&nbsp;&nbsp;/s/ Larry W. Myers |
|  |  |  | &nbsp;&nbsp;&nbsp;Larry W. Myers |
|  |  |  | &nbsp;&nbsp;&nbsp;President and Chief Executive Officer |
| **Dated** | August 8, 2025 | **BY:** | &nbsp;&nbsp;&nbsp;/s/ Anthony A. Schoen |
|  |  |  | &nbsp;&nbsp;&nbsp;Anthony A. Schoen |
|  |  |  | &nbsp;&nbsp;&nbsp;Chief Financial Officer |

---

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Larry W. Myers, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of First Savings Financial Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | August 8, 2025 | /s/ Larry W. Myers |
|  |  | Larry W. Myers |
|  |  | President and Chief Executive Officer |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Anthony A. Schoen, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this quarterly report on Form 10-Q of First Savings Financial Group, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as the end of the period covered by this report based on such evaluation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: | August 8, 2025 | /s/ Anthony A. Schoen |
|  |  | Anthony A. Schoen |
|  |  | Chief Financial Officer |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of First Savings Financial Group, Inc. and Subsidiaries (the "Company") on Form 10-Q for the period ended June 30, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Larry W. Myers, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

---

| | | | |
|:---|:---|:---|:---|
| **DATE**: | August 8, 2025 | **BY**: | /s/ Larry W. Myers |
|  |  |  | Larry W. Myers |
|  |  |  | President and Chief Executive Officer |

---

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## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of First Savings Financial Group, Inc. and Subsidiaries (the "Company") on Form 10-Q for the period ended June 30, 2025, as filed with the Securities and Exchange Commission (the "Report"), I, Anthony A. Schoen, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

---

| | | | |
|:---|:---|:---|:---|
| **DATE**: | August 8, 2025 | **BY**: | /s/ Anthony A. Schoen |
|  |  |  | Anthony A. Schoen |
|  |  |  | Chief Financial Officer |

---

------