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What changed in First Savings Financial Group, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of First Savings Financial Group, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+221 added−219 removedSource: 10-K (2025-12-12) vs 10-K (2024-12-13)

Top changes in First Savings Financial Group, Inc.'s 2025 10-K

221 paragraphs added · 219 removed · 188 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

45 edited+10 added−2 removed182 unchanged
Biggest changeWe also utilize brokered certificates of deposit and reciprocal time deposits as sources of borrowings and may use broker repurchase agreements and internet certificates of deposit from time to time, depending on our liquidity needs and pricing of these facilities versus other funding alternatives. 9 Table of Contents Employees and Human Capital Resources We believe that the success of a business is largely due to the quality of its employees, the development of each employee’s full potential, and the Company’s ability to provide timely and satisfying rewards.
Biggest changeWe also utilize brokered certificates of 9 Table of Contents deposit and reciprocal time deposits as sources of borrowings and may use broker repurchase agreements and internet certificates of deposit from time to time, depending on our liquidity needs and pricing of these facilities versus other funding alternatives.
The FRB has authority to establish individual minimum capital requirements in appropriate cases upon a determination that an institution’s capital level is or may become inadequate in light of the particular risks or circumstances. As of September 30, 2024, First Savings Bank met all applicable capital adequacy requirements in effect at that date. Prompt Corrective Regulatory Action.
The FRB has authority to establish individual minimum capital requirements in appropriate cases upon a determination that an institution’s capital level is or may become inadequate in light of the particular risks or circumstances. As of September 30, 2025, First Savings Bank met all applicable capital adequacy requirements in effect at that date. Prompt Corrective Regulatory Action.
Generally, subject to certain exceptions, an Indiana bank may not make a loan or extend credit to a single or related group of borrowers in excess of 15% of its unimpaired capital and surplus. An additional amount may be lent, equal to 10% of unimpaired capital and surplus, if secured by specified readily-marketable collateral.
Generally, subject to certain exceptions, an Indiana bank may not make a loan or extend credit to a single or related group of borrowers in excess of 15% of its 10 Table of Contents unimpaired capital and surplus. An additional amount may be lent, equal to 10% of unimpaired capital and surplus, if secured by specified readily-marketable collateral.
As a member of the Federal Reserve System and Federal Home Loan Bank System, in particular a member of the Federal Home Loan Bank of Indianapolis (“FHLB”), First Savings Bank is also required to acquire and hold shares of capital stock in the Federal Reserve Bank and FHLB. At September 30, 2024, our investment portfolio consisted primarily of U.S.
As a member of the Federal Reserve System and Federal Home Loan Bank System, in particular a member of the Federal Home Loan Bank of Indianapolis (“FHLB”), First Savings Bank is also required to acquire and hold shares of capital stock in the Federal Reserve Bank and FHLB. At September 30, 2025, our investment portfolio consisted primarily of U.S.
The regulations also provide that a capital restoration plan must be filed with the FRB 11 Table of Contents within 45 days of the date an institution is deemed to have received notice that it is “undercapitalized,” “significantly undercapitalized” or “critically undercapitalized.” Compliance with the plan must be guaranteed by any parent holding company up to the lesser of 5% of the institution’s total assets when it was deemed to be undercapitalized or the amount necessary to achieve compliance with applicable capital requirements.
The regulations also provide that a capital restoration plan must be filed with the FRB within 45 days of the date an institution is deemed to have received notice that it is “undercapitalized,” “significantly undercapitalized” or “critically undercapitalized.” Compliance with the plan must be guaranteed by any parent holding company up to the lesser of 5% of the institution’s total assets when it was deemed to be undercapitalized or the amount necessary to achieve compliance with applicable capital requirements.
While one- to four-family residential real estate loans are normally originated with up to 30-year terms, such loans typically remain outstanding for substantially shorter periods because borrowers often prepay their loans in full either upon sale of the property pledged as security or upon refinancing the original loan.
While one- to four-family residential real estate loans are normally originated with up to 30-year terms, such loans typically remain outstanding for substantially shorter periods because borrowers often prepay their loans in full either upon sale of the property 4 Table of Contents pledged as security or upon refinancing the original loan.
The capital conservation buffer requirement was 2.50% for 2024 and 2023. The Bank met all capital adequacy requirements to which it was subject as of September 30, 2024 and 2023.
The capital conservation buffer requirement was 2.50% for 2025 and 2024. The Bank met all capital adequacy requirements to which it was subject as of September 30, 2025 and 2024.
The Company’s Indiana tax returns for the fiscal years ended September 30, 2020 and 2021 were audited by the Indiana Department of Revenue. These audits were closed during the fiscal year ended September 30, 2023. Our other state income tax returns have not been audited during the last five years. ​ 16 Table of Contents
The Company’s Indiana tax returns for the fiscal years ended September 30, 2020 and 2021 were audited by the Indiana Department of Revenue. These audits were closed during the fiscal year ended September 30, 2023. Our other state income tax returns have not been audited during the last five years. ​
In addition, banks owned by large national and regional holding companies and other community-based banks also operate in our primary market area. Some of these institutions are larger than us and, therefore, may have greater resources.
In addition, banks owned by large national and 3 Table of Contents regional holding companies and other community-based banks also operate in our primary market area. Some of these institutions are larger than us and, therefore, may have greater resources.
Because First Savings Financial Group owns 100% of the issued and outstanding capital stock of First Savings Bank, First Savings Financial Group and First 15 Table of Contents Savings Bank are members of an affiliated group within the meaning of Section 1504(a) of the Internal Revenue Code, of which group First Savings Financial Group is the common parent corporation.
Because First Savings Financial Group owns 100% of the issued and outstanding capital stock of First Savings Bank, First Savings Financial Group and First Savings Bank are members of an affiliated group within the meaning of Section 1504(a) of the Internal Revenue Code, of which group First Savings Financial Group is the common parent corporation.
The Federal Home Loan Bank System provides a central credit facility primarily for member institutions. First Savings Bank, as a member of the FHLB, is required to acquire and hold shares of capital stock in the FHLB. First Savings Bank was in compliance with this requirement with an investment in FHLB capital stock of $23.1 million at September 30, 2024.
The Federal Home Loan Bank System provides a central credit facility primarily for member institutions. First Savings Bank, as a member of the FHLB, is required to acquire and hold shares of capital stock in the FHLB. First Savings Bank was in compliance with this requirement with an investment in FHLB capital stock of $23.6 million at September 30, 2025.
Generally, our loan commitments expire after 30 days. See Note 17, “Commitments and Contingencies” of the Notes to Consolidated Financial Statements beginning on page F-1 of this annual report for additional information regarding our loan commitments at September 30, 2024. 8 Table of Contents Investment Activities We have legal authority to invest in various types of liquid assets, including U.S.
Generally, our loan commitments expire after 30 days. See Note 17, “Commitments and Contingencies” of the Notes to Consolidated Financial Statements beginning on page F-1 of this annual report for additional information regarding our loan commitments at September 30, 2025. Investment Activities We have legal authority to invest in various types of liquid assets, including U.S.
An institution is deemed to be “significantly undercapitalized” if it has a total risk-based capital ratio of less than 6.0%, a Tier 1 risk-based capital ratio of less than 4.0%, a leverage ratio of less than 3.0% or a common equity Tier 1 ratio of less than 3.0%.
An institution is deemed to be “significantly undercapitalized” if it has a total risk-based capital ratio of less than 6.0%, a Tier 1 risk-based capital ratio of less than 4.0%, a leverage 11 Table of Contents ratio of less than 3.0% or a common equity Tier 1 ratio of less than 3.0%.
In computing Indiana taxable income, deductions for municipal interest, state and local income taxes and certain accelerated depreciation permitted for federal tax purposes are disallowed. The Company and its subsidiaries also file income and franchise tax returns in various other states where they are deemed to have tax nexus.
In computing Indiana taxable income, deductions for municipal interest, state and local income taxes and certain accelerated depreciation permitted for federal tax purposes are disallowed. 16 Table of Contents The Company and its subsidiaries also file income and franchise tax returns in various other states where they are deemed to have tax nexus.
First Savings Financial Group elected to become a financial holding company because of the former activities of the Captive. Bank holding companies are generally subject to consolidated capital requirements established by the FRB.
First Savings Financial Group elected to become a financial holding company because of the former activities of the Captive. 14 Table of Contents Bank holding companies are generally subject to consolidated capital requirements established by the FRB.
The Bank has three subsidiaries, Q2 Business Capital, LLC, an Indiana limited liability company specializing in the origination and servicing of SBA loans, First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio, and Southern Indiana Financial Corporation, an independent insurance agency, offering various types of annuities and life insurance policies. Southern Indiana Financial Corporation is currently inactive.
The Bank has three wholly - owned subsidiaries, Q2 Business Capital, LLC, an Indiana limited liability company specializing in the origination and servicing of SBA loans, First Savings Investments, Inc., a Nevada corporation that manages a securities portfolio, and Southern Indiana Financial Corporation, an independent insurance agency, offering various types of annuities and life insurance policies.
REGULATION AND SUPERVISION General First Savings Bank, as an Indiana commercial bank, is subject to extensive regulation, examination and supervision by the Indiana Department of Financial Institutions (“INDFI”). As a member bank of the Federal Reserve System, First Savings Bank’s primary federal regulator is the Federal Reserve Board (“FRB”).
Southern Indiana Financial Corporation is currently inactive. REGULATION AND SUPERVISION General First Savings Bank, as an Indiana commercial bank, is subject to extensive regulation, examination and supervision by the Indiana Department of Financial Institutions (“INDFI”). As a member bank of the Federal Reserve System, First Savings Bank’s primary federal regulator is the Federal Reserve Board (“FRB”).
If the FRB determines that a state member bank fails to meet any standard prescribed by the guidelines, the FRB may require the institution to submit an acceptable plan to achieve compliance with the standard. Community Reinvestment Act.
If the FRB determines that a state member bank fails to meet any standard prescribed by the guidelines, the FRB may require the institution to submit an acceptable plan to achieve compliance with the standard. 12 Table of Contents Community Reinvestment Act.
At September 30, 2024, acquired participation interests totaled $37.5 million. 7 Table of Contents Beginning in April 2015, the Bank hired a management team, business development officers (loan officers), underwriters and supporting staff that are seasoned and experienced in SBA lending in order to enhance the Company’s proficiency in SBA 7(a) program loan originations and sales.
At September 30, 2025, acquired participation interests totaled $25.1 million. 7 Table of Contents Beginning in April 2015, the Bank hired a management team, business development officers (loan officers), underwriters and supporting staff that are seasoned and experienced in SBA lending in order to enhance the Company’s proficiency in SBA 7(a) program loan originations and sales.
The assessments paid to the INDFI by First Savings Bank for the year ended September 30, 2024 totaled $129,000. Federal Home Loan Bank System. First Savings Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks.
The assessments paid to the INDFI by First Savings Bank for the year ended September 30, 2025 totaled $134,000. Federal Home Loan Bank System. First Savings Bank is a member of the Federal Home Loan Bank System, which consists of 11 regional Federal Home Loan Banks.
This lending platform is also designed to diversify the Company’s geographic and interest rate risk profile with respect to the retained unguaranteed amounts given the geographic dispersion of the loans and collateral, and their floating rate structure. The Company originated SBA loans with a total commitment of $79.3 million during the year ended September 30, 2024.
This lending platform is also designed to diversify the Company’s geographic and interest rate risk profile with respect to the retained unguaranteed amounts given the geographic dispersion of the loans and collateral, and their floating rate structure. The Company originated SBA loans with a total commitment of $89.5 million during the year ended September 30, 2025.
We offer 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.
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.
Other Regulations First Savings Bank’s operations are also subject to federal laws applicable to credit transactions, including the: ● Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; ● Home Mortgage Disclosure Act of 1975, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; ● Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; 13 Table of Contents ● Fair Credit Reporting Act of 1978, governing the use and provision of information to credit reporting agencies; ● Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and ● Rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
On March 26, 2020, in response to the COVID-19 pandemic, the FRB reduced the reserve requirement to zero, and the requirement remained at zero at September 30, 2025 and 2024. 13 Table of Contents Other Regulations First Savings Bank’s operations are also subject to federal laws applicable to credit transactions, including the: ● Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers; ● Home Mortgage Disclosure Act of 1975, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves; ● Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit; ● Fair Credit Reporting Act of 1978, governing the use and provision of information to credit reporting agencies; ● Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and ● Rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws.
The maximum amount that we may lend to one borrower and the borrower’s related entities is limited, by regulation, to generally 15% of our stated capital and reserves. At September 30, 2024, our regulatory limit on loans to one borrower was $36.3 million.
The maximum amount that we may lend to one borrower and the borrower’s related entities is limited, by regulation, to generally 15% of our stated capital and reserves. At September 30, 2025, our regulatory limit on loans to one borrower 8 Table of Contents was $36.7 million.
The average size of these loans originated was $1.8 million and the portfolio balance was $750.6 million at September 30, 2024. Construction Loans. We originate construction loans for one to four family homes and commercial properties such as small industrial buildings, warehouses, retail shops and office units.
The average size of these loans originated was $1.7 million and the portfolio balance was $765.4 million at September 30, 2025. Construction Loans. We originate construction loans for one to four family homes and commercial properties such as small industrial buildings, warehouses, retail shops and office units.
The Dodd-Frank Act codified the source of strength doctrine. 14 Table of Contents A bank holding company is generally required to give the FRB prior written notice of any purchase or redemption of then outstanding equity securities if the gross consideration for the purchase or redemption, when combined with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the company’s consolidated net worth.
A bank holding company is generally required to give the FRB prior written notice of any purchase or redemption of then outstanding equity securities if the gross consideration for the purchase or redemption, when combined with the net consideration paid for all such purchases or redemptions during the preceding 12 months, is equal to 10% or more of the company’s consolidated net worth.
These limits are similar to those applicable to First Savings Bank under its previous federal savings bank charter. 10 Table of Contents Capital Requirements .
These limits are similar to those applicable to First Savings Bank under its previous federal savings bank charter. Capital Requirements .
The aggregate amount of covered transactions with all affiliates is limited to 20% of a bank’s capital and surplus. Certain transactions with affiliates are required to be secured by collateral in an amount and of a type specified by federal law. The purchase of low quality assets from affiliates is generally prohibited.
Certain transactions with affiliates are required to be secured by collateral in an amount and of a type specified by federal law. The purchase of low quality assets from affiliates is generally prohibited.
Therefore, average loan maturity is a function of, among other factors, the level of purchase and sale activity in the real estate market, prevailing interest rates and the interest rates payable on outstanding loans on a regular basis.
Therefore, average loan maturity is a function of, among other factors, the level of purchase and sale activity in the real estate market, prevailing interest rates and the interest rates payable on outstanding loans on a regular basis. We do not offer loans with negative amortization and generally do not offer interest-only loans.
At September 30, 2024, loans totaling $154.8 million included sold participation interests of $103.9 million, for a net position of $50.9 million outstanding in our portfolio.
At September 30, 2025, loans totaling $150.8 million included sold participation interests of $100.9 million, for a net position of $49.9 million outstanding in our portfolio.
We do not offer loans with negative amortization and generally do not offer interest-only loans. 4 Table of Contents We generally do not originate conventional loans with loan-to-value ratios exceeding 80%, including that for non-owner occupied residential real estate loans whose loan-to-value ratios generally may not exceed 75%, or 65% where the borrower has more than five non-owner occupied loans outstanding.
We generally do not originate conventional loans with loan-to-value ratios exceeding 80%, including that for non-owner occupied residential real estate loans whose loan-to-value ratios generally may not exceed 75%, or 65% where the borrower has more than five non-owner occupied loans outstanding. Loans with loan-to-value ratios in excess of 80% generally require private mortgage insurance.
At June 30, 2024, which is the most recent date for which data is available from the FDIC, we held approximately 33.22%, 18.12%, 2.23%, 23.80%, 100.00% and 28.74% of the FDIC-insured deposits in Clark, Daviess, Floyd, Harrison, Crawford and Washington Counties, Indiana, respectively. This data does not reflect deposits held by credit unions with which we also compete.
At June 30, 2025, which is the most recent date for which data is available from the FDIC, we held approximately 22.78%, 22.65%, 4.16%, 25.20%, 100.00% and 40.70% of the FDIC-insured deposits in Clark, Daviess, Floyd, Harrison, Crawford and Washington Counties, Indiana, respectively. This data does not reflect deposits held by credit unions with which we also compete.
At September 30, 2024, $299.7 million of SBA loans included sold guaranteed portions of $194.4 million, for a net position of $105.3 million outstanding in our portfolio. All SBA loans held for sale were carried at the lower of cost or fair market value at September 30, 2024 and 2023. Mortgage Banking.
At September 30, 2025, $321.6 million of SBA loans included sold guaranteed portions of $224.2 million, for a net position of $97.4 million outstanding in our portfolio. All SBA loans held for sale were carried at the lower of cost or fair market value at September 30, 2025 and 2024.
Our competition for loans comes primarily from financial institutions in our primary market area and from other financial service providers, such as mortgage companies, mortgage brokers and credit unions.
Our competition for loans comes primarily from financial institutions in our primary market area and from other financial service providers, such as mortgage companies, mortgage brokers and credit unions. Competition for loans also comes from non-depository financial service companies entering the mortgage market, such as insurance companies, securities companies, and specialty and captive finance companies.
Loans with loan-to-value ratios in excess of 80% generally require private mortgage insurance. However, the total balance of residential mortgage loans secured by one-to-four family residential properties with loan-to-value ratios exceeding 90% amounted to $17.2 million, of which some do not have private mortgage insurance or government guaranty.
However, the total balance of residential mortgage loans secured by one-to-four family residential properties with loan-to-value ratios exceeding 90% amounted to $21.2 million, of which some do not have private mortgage insurance or government guaranty. We generally require all properties securing mortgage loans to be appraised by a board-approved independent appraiser.
We generally require all properties securing mortgage loans to be appraised by a board-approved independent appraiser. We also generally require title insurance on all first mortgage loans with principal balances of $250,000 or more. Borrowers must obtain hazard insurance, and flood insurance is required for all loans located in flood hazard areas. Commercial Real Estate Loans.
We also generally require title insurance on all first mortgage loans with principal balances of $250,000 or more. Borrowers must obtain hazard insurance, and flood insurance is required for all loans located in flood hazard areas. Commercial Real Estate Loans. We offer fixed and adjustable-rate mortgage loans secured by commercial real estate.
Market Area We are located in South Central Indiana along the axis of Interstate 65 and Interstate 64, directly across the Ohio River from Louisville, Kentucky. We consider Clark, Floyd, Harrison, Crawford, Washington and Daviess counties, Indiana, in which all of our offices are located, and the surrounding areas to be our primary market area.
We consider Clark, Floyd, Harrison, Crawford, Washington and Daviess counties, Indiana, in which all of our offices are located, and the surrounding areas to be our primary market area.
The Company originated $60.8 million and sold $83.2 million of one- to four-family residential real estate loans within this lending platform during the year ended September 30, 2024. The were no outstanding one- to four-family residential real estate loans within the lending platform in the Bank’s portfolio at September 30, 2024.
The Company did not originate any one- to four-family residential real estate loans within this lending platform during the year ended September 30, 2025. The were no outstanding one- to four-family residential real estate loans within the lending platform in the Bank’s portfolio at September 30, 2025.
Federal Securities Laws First Savings Financial Group’s common stock is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. First Savings Financial Group is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934, as amended. TAXATION Federal Income Taxation General.
Federal Securities Laws First Savings Financial Group’s common stock is registered with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended.
Federal law limits First Savings Bank’s authority to engage in transactions with “affiliates” ( e.g ., any entity that controls or is under common control with First Savings Bank, including First Savings Financial Group and its other subsidiaries). The aggregate amount of covered transactions with any individual affiliate is limited to 10% of the capital and surplus of a bank.
First Savings Bank received a “satisfactory” Community Reinvestment Act rating in its most recently completed examination. Transactions with Related Parties. Federal law limits First Savings Bank’s authority to engage in transactions with “affiliates” ( e.g ., any entity that controls or is under common control with First Savings Bank, including First Savings Financial Group and its other subsidiaries).
Federal Reserve Board System. The FRB regulations require banks to maintain reserves against their transaction accounts (primarily Negotiable Order of Withdrawal (NOW) and regular checking accounts). On March 26, 2020, in response to the COVID-19 pandemic, the FRB reduced the reserve requirement to zero, and the requirement remained at zero at September 30, 2024 and 2023.
Federal Reserve Board System. The FRB regulations require banks to maintain reserves against their transaction accounts (primarily Negotiable Order of Withdrawal (NOW) and regular checking accounts).
We encourage and support the development of our employees and, whenever possible, strive to fill vacancies from within. We invest in learning and development including tuition reimbursement for courses, degree programs and fees paid for certifications. As of September 30, 2024, we had 250 full-time employees and 24 part-time employees, none of whom is represented by a collective bargaining unit.
We invest in learning and development including tuition reimbursement for courses, degree programs and fees paid for certifications. As of September 30, 2025, we had 244 full-time employees and 26 part-time employees, none of whom are represented by a collective bargaining unit. Subsidiaries The Company has one wholly-owned subsidiary, First Savings Bank.
Competition for loans also comes from non-depository financial service companies entering the mortgage market, such as insurance companies, securities companies, and specialty and captive finance companies. 3 Table of Contents We expect competition to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry.
We expect competition to increase in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry.
We report our income on a fiscal year basis using the accrual method of accounting. The federal income tax laws apply to us in the same manner as to other corporations with some exceptions, including particularly our reserve for bad debts discussed below.
The federal income tax laws apply to us in the same manner as to other corporations with some exceptions, including particularly our reserve for bad debts discussed below. The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to us.
The following discussion of tax matters is intended only as a summary and does not purport to be a comprehensive description of the tax rules applicable to us. First Savings Financial Group and First Savings Bank have entered into a tax allocation agreement.
First Savings Financial Group and First Savings Bank have entered into a tax allocation agreement.
Removed
Subsidiaries The Company has one wholly-owned subsidiary, First Savings Bank.
Added
Pending Merger On September 24, 2025, First Savings Financial Group entered into a definitive merger agreement with First Merchants Corporation, the holding company of First Merchants Bank.
Removed
First Savings Bank received a “satisfactory” Community Reinvestment Act rating in its most recently completed examination. 12 Table of Contents Transactions with Related Parties.
Added
Pursuant to the merger agreement and subject to the receipt of requisite regulatory approvals and the approval of our shareholders and the satisfaction of other customary closing conditions, First Savings Financial Group would merge with and into First Merchants Corporation and First Savings Bank would merge with and into First Merchants Bank, with First Merchants Corporation and First Merchants Bank being the surviving institutions.
Added
The transaction is expected close during the first calendar quarter of 2026. Market Area We are located in South Central Indiana along the axis of Interstate 65 and Interstate 64, directly across the Ohio River from Louisville, Kentucky.
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Beginning in July 2019, the Bank hired a management team, business development officers (loan officers), underwriters and supporting staff that are seasoned and experienced in producing and managing first lien home equity loans. The primary purpose of this platform is to originate first lien home equity loans for interest income and for sale to the secondary market.
Added
This lending platform is also designed to diversify the Company’s geographic and interest rate risk profile given the loans’ floating rate structure. At September 30, 2025, the Company had $386.8 million of first lien home equity loans in the portfolio, which included $36.1 million of loans held for sale.
Added
All first lien home equity loans held for sale were carried at the lower of cost or fair market value at September 30, 2025 and 2024. Mortgage Banking.
Added
Employees and Human Capital Resources We believe that the success of a business is largely due to the quality of its employees, the development of each employee’s full potential, and the Company’s ability to provide timely and satisfying rewards. We encourage and support the development of our employees and, whenever possible, strive to fill vacancies from within.
Added
The aggregate amount of covered transactions with any individual affiliate is limited to 10% of the capital and surplus of a bank. The aggregate amount of covered transactions with all affiliates is limited to 20% of a bank’s capital and surplus.
Added
The Dodd-Frank Act codified the source of strength doctrine.
Added
First Savings Financial Group is subject to the information, proxy solicitation, insider trading restrictions and other requirements under the Securities Exchange Act of 1934, as amended. 15 Table of Contents TAXATION Federal Income Taxation General. We report our income on a fiscal year basis using the accrual method of accounting.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

21 edited+10 added−8 removed97 unchanged
Biggest changeConsequently, an adverse development with respect to one credit relationship may expose us to a greater risk of loss compared to an adverse development with respect to an owner occupied residential mortgage loan. At September 30, 2024, the Bank had three nonperforming non-owner occupied residential loans totaling $157,000.
Biggest changeAt September 30, 2025, we had five non-owner occupied residential loan relationships, each having an outstanding balance over $500,000, with aggregate outstanding balances of $4.7 million. Consequently, an adverse development with respect to one credit relationship may expose us to a greater risk of loss compared to an adverse development with respect to an owner occupied residential mortgage loan.
At September 30, 2024, the Bank did not have any non-owner occupied residential properties held as real estate owned. For more information about the credit risk we face, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management.” We may suffer losses in our loan portfolio despite our underwriting practices.
At September 30, 2025 and 2024, the Bank did not have any non-owner occupied residential properties held as real estate owned. For more information about the credit risk we face, see “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management.” We may suffer losses in our loan portfolio despite our underwriting practices.
As of September 30, 2024, the Company had no residential loans mortgage loan servicing rights due to the wind down of the national mortgage banking operation and subsequent sale of the residential mortgage loan servicing rights portfolio, which was completed during the year ended September 30, 2024. 19 Table of Contents Risks Related to Competition Strong competition within our primary market area could hurt our profits and slow growth.
As of September 30, 2025, the Company had no residential loans mortgage loan servicing rights due to the wind down of the national mortgage banking operation and subsequent sale of the residential mortgage loan servicing rights portfolio, which was completed during the year ended September 30, 2024. 19 Table of Contents Risks Related to Competition Strong competition within our primary market area could hurt our profits and slow growth.
Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. 23 Table of Contents The Dodd-Frank Act has created a new federal agency to administer consumer protection and fair lending laws, a function that was formerly performed by the depository institution regulators.
Any change in such regulation and oversight, whether in the form of regulatory policy, regulations, legislation or supervisory action, may have a material impact on our operations. The Dodd-Frank Act has created a new federal agency to administer consumer protection and fair lending laws, a function that was formerly performed by the depository institution regulators.
If such new regulatory requirements were not met, the Bank would not be able to pay dividends to the Company, and consequently we may be unable to pay dividends on our common stock. 24 Table of Contents The trading volume of our stock varies and you may not be able to resell your shares at or above the price you paid for them.
If such new regulatory requirements were not met, the Bank would not be able to pay dividends to the Company, and consequently we may be unable to pay dividends on our common stock. The trading volume of our stock varies and you may not be able to resell your shares at or above the price you paid for them.
This risk of loss also includes the potential legal actions that could arise as a result of an operational deficiency or as a result of noncompliance with applicable regulatory standards, adverse business decisions or their implementation, and customer attrition due to potential negative publicity.
This risk of loss also includes the potential legal actions that could arise as a result of an operational deficiency or as a result of noncompliance with applicable regulatory standards, adverse business decisions or their implementation, and customer attrition due 21 Table of Contents to potential negative publicity.
Also, any changes to the SBA program, including changes to the level of guarantee provided by the federal government on SBA loans, could adversely affect our business and earnings. We generally sell the guaranteed portion of our SBA 7(a) program loans in the secondary market.
Also, any changes to the SBA program, including changes to the level of guarantee provided by the federal government on SBA loans, could adversely affect our business and earnings. 18 Table of Contents We generally sell the guaranteed portion of our SBA 7(a) program loans in the secondary market.
At September 30, 2024, approximately $977.3 million, or 49.3% of the total loan portfolio, consisted of fixed-rate loans with maturity dates after September 30, 2025. This investment in fixed-rate loans exposes the Company to increased levels of interest rate risk. Changes in interest rates also affect the value of our interest-earning assets, and in particular our securities portfolio.
At September 30, 2025, approximately $943.9 million, or 49.5% of the total loan portfolio, consisted of fixed-rate loans with maturity dates after September 30, 2026. This investment in fixed-rate loans exposes the Company to increased levels of interest rate risk. Changes in interest rates also affect the value of our interest-earning assets, and in particular our securities portfolio.
Insiders have substantial control over us, and this control may limit our shareholders’ ability to influence corporate matters and may delay or prevent a third party from acquiring control over us. As of December 6, 2024, our directors, executive officers, and their related entities and persons currently beneficially own, in the aggregate, approximately 15.32% of our outstanding common stock.
Insiders have substantial control over us, and this control may limit our shareholders’ ability to influence corporate matters and may delay or prevent a third party from acquiring control over us. As of December 5, 2025, our directors, executive officers, and their related entities and persons currently beneficially own, in the aggregate, approximately 16.53% of our outstanding common stock.
Risks Related to Our Lending Activities Our emphasis on commercial real estate lending and commercial business lending may expose us to increased lending risks. At September 30, 2024, $1.15 billion, or 58.2%, of our loan portfolio consisted of commercial real estate loans and commercial business loans. Subject to market conditions, we intend to increase our origination of these loans.
Risks Related to Our Lending Activities Our emphasis on commercial real estate lending and commercial business lending may expose us to increased lending risks. At September 30, 2025, $1.22 billion, or 63.9%, of our loan portfolio consisted of commercial real estate loans and commercial business loans. Subject to market conditions, we intend to increase our origination of these loans.
Consequently, an adverse development with respect to one loan or one credit relationship may expose us to a greater risk of loss compared to an adverse development with respect to a one- to four-family residential mortgage loan. At September 30, 2024, nonperforming commercial real estate loans totaled $8.8 million. At September 30, 2024 nonperforming commercial business loans totaled $3.2 million.
Consequently, an adverse development with respect to one loan or one credit relationship may expose us to a greater risk of loss compared to an adverse development with respect to a one- to four-family residential mortgage loan. At September 30, 2025, nonperforming commercial real estate loans totaled $6.0 million. At September 30, 2025 nonperforming commercial business loans totaled $1.7 million.
We may be required to repurchase mortgage loans or indemnify buyers against losses in some circumstances. When residential mortgage loans are sold, whether as whole loans or pursuant to a securitization, we are required to make customary representations and warranties to purchasers, guarantors and insurers about the mortgage loans and the manner in which they were originated.
When residential mortgage loans are sold, whether as whole loans or pursuant to a securitization, we are required to make customary representations and warranties to purchasers, guarantors and insurers about the mortgage loans and the manner in which they were originated.
If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced by us, the SBA may seek recovery of the principal loss related to the deficiency from us, which could adversely affect our business and earnings. 18 Table of Contents The laws, regulations and standard operating procedures that are applicable to SBA loan products may change in the future.
If the SBA establishes that a loss on an SBA guaranteed loan is attributable to significant technical deficiencies in the manner in which the loan was originated, funded or serviced by us, the SBA may seek recovery of the principal loss related to the deficiency from us, which could adversely affect our business and earnings.
The occurrence of any failures or interruptions of these information systems could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation and possible financial liability, any of which could have a material adverse effect on our financial condition and results of operations. 22 Table of Contents We rely on the secure processing, storage and transmission of confidential and other information on our computer systems and networks.
The occurrence of any failures or interruptions of these information systems could damage our reputation, result in a loss of customer business, subject us to additional regulatory scrutiny, or expose us to civil litigation and possible financial liability, any of which could have a material adverse effect on our financial condition and results of operations.
At September 30, 2024, $80.1 million, or 4.0% of our loan portfolio consisted of construction loans, and land and land development loans, and $6.4 million, or 10.2% of the construction loan portfolio (excluding undisbursed commitments and portions participated to other financial institutions), consisted of speculative construction loans at that date.
At September 30, 2025, $60.0 million, or 2.9% of our loan portfolio consisted of construction loans, and land and land development loans, and $6.5 million, or 16.2% of the construction loan portfolio (excluding undisbursed commitments and portions participated to other financial institutions), consisted of speculative construction loans at that date.
Competition also makes it more difficult to grow loans and deposits. At June 30, 2024, which is the most recent date for which data is available from the FDIC, we held approximately 33.22%, 18.12%, 2.23%, 23.80%, 100.00% and 28.74% of the FDIC-insured deposits in Clark, Daviess, Floyd, Harrison, Crawford and Washington Counties, Indiana, respectively.
Competition also makes it more difficult to grow loans and deposits. At June 30, 2025, which is the most recent date for which data is available from the FDIC, we held approximately 22.78%, 22.65%, 4.16%, 25.20%, 100.00% and 40.70% of the FDIC-insured deposits in Clark, Daviess, Floyd, Harrison, Crawford and Washington Counties, Indiana, respectively.
Goodwill represents the amount of consideration exchanged over the fair value of net assets we acquired in the purchase of another financial institution. We review goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate the carrying value of the asset might be impaired. At September 30, 2024, our goodwill totaled $9.8 million.
We review goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate the carrying value of the asset might be impaired. At September 30, 2025, our goodwill totaled $9.8 million.
However, we cannot assure that this policy will afford coverage for all possible losses or would be sufficient to cover all financial losses, damages, penalties, including lost revenues, should we experience any one or more of our or a third party’s systems failing or experiencing attack.
However, we cannot assure that this policy will afford coverage for all possible losses or would be sufficient to cover all financial losses, damages, penalties, including lost revenues, should we experience any one or more of our or a third party’s systems failing or experiencing attack. 22 Table of Contents If the goodwill that we recorded in connection with a business acquisition becomes impaired, it could have a significant negative impact on our profitability.
We cannot predict the effects of these changes on our business and profitability. Because government regulation greatly affects the business and financial results of all commercial banks and bank holding companies, changes in the laws, regulations and procedures applicable to SBA loans could adversely affect our business and earnings.
Because government regulation greatly affects the business and financial results of all commercial banks and bank holding companies, changes in the laws, regulations and procedures applicable to SBA loans could adversely affect our business and earnings. We may be required to repurchase mortgage loans or indemnify buyers against losses in some circumstances.
Risks Related to an Investment in Our Common Stock Our ability to pay dividends is subject to certain limitations and restrictions, and there is no guarantee that we will be able to continue paying the same level of dividends in the future that we paid in 2024 or that we will be able to pay future dividends at all.
Our inability to attract, hire or retain key personnel could have a material adverse effect on our business, results of operations and financial condition. 23 Table of Contents Risks Related to an Investment in Our Common Stock Our ability to pay dividends is subject to certain limitations and restrictions, and there is no guarantee that we will be able to continue paying the same level of dividends in the future that we paid in 2025 or that we will be able to pay future dividends at all.
Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management.” Our concentration in non-owner occupied residential real estate loans may expose us to increased credit risk. At September 30, 2024, $24.9 million, or 3.7% of our residential mortgage loan portfolio and 1.3% of our total loan portfolio, consisted of loans secured by non-owner occupied residential properties.
Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management.” 17 Table of Contents Our concentration in non-owner occupied residential real estate loans may expose us to increased credit risk.
Removed
At September 30, 2024, we had four non-owner 17 Table of Contents occupied residential loan relationships, each having an outstanding balance over $500,000, with aggregate outstanding balances of $6.8 million.
Added
At September 30, 2025, $24.6 million, or 4.1% of our residential mortgage loan portfolio and 1.3% of our total loan portfolio, consisted of loans secured by non-owner occupied residential properties.
Removed
Risks Related to Mergers and Acquisitions and Other Expansionary Activities Market expansion and acquisitions may not produce revenue enhancements or cost savings at levels or within timeframes originally anticipated and may result in unforeseen integration difficulties and dilution to existing shareholder value.
Added
The laws, regulations and standard operating procedures that are applicable to SBA loan products may change in the future. We cannot predict the effects of these changes on our business and profitability.
Removed
We have acquired, and expect to continue to acquire, other financial institutions or parts of those institutions in the future, and we may engage in de novo branch expansion. We may also consider and enter into new lines of business or offer new products or services.
Added
Risks Related to Our Pending Merger with First Merchants Corporation If the merger is not completed, we will have incurred substantial expenses without realizing the expected benefits of the merger. We have incurred substantial expenses in connection with the pending merger with First Merchants Corporation.
Removed
We may incur substantial costs to expand, and we can give no assurance such expansion will result in the levels of profits we seek. There can be no assurance that integration efforts for any mergers or acquisitions will be successful.
Added
Although some of these expenses will not be incurred if the merger is not completed, others will and such expenses could have a material adverse impact on the our financial condition and results of operations. The completion of the merger depends on the satisfaction of several conditions. We cannot guarantee that these conditions will be met.
Removed
Also, we may issue equity securities in connection with acquisitions, which could cause ownership and economic dilution to our current shareholders. There is no assurance that, following any mergers or acquisitions, our integration efforts will be successful or that, after giving effect to the acquisition, we will achieve profits comparable to, or better than, our historical experience.
Added
There can be no assurance that the merger will be completed. We will be subject to business uncertainties and contractual restrictions while the merger is pending. Uncertainty about the effect of the pending merger on our employees and customers may have an adverse effect on us.
Removed
Market expansion and acquisitions involve a number of expenses and risks, including but not limited to: ● the time and costs of associated with identifying and evaluating potential new markets, hiring experienced local management and opening new offices, and the time lags between these activities and the generation of sufficient assets and deposits to support the costs of the expansion; ● the time and costs associated with identifying potential acquisition and merger targets; ● the accuracy of the estimates and judgments used to evaluate credit, operations, management and market risks with respect to a target institution; ● the diversion of our management’s attention to the negotiation of a transaction, and the integration of the operations and personnel of the combined businesses; ● our ability to finance an acquisition and possible dilution to our existing shareholders; ● closing delays and expenses related to the resolution of lawsuits filed by shareholders of targets; ● entry into new markets where we lack experience; ● introduction of new products and services into our business; ● the risk of loss of key employees and customers; and ● incurrence and possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations.
Added
These uncertainties may impair our ability to attract, retain, and motivate key personnel until the merger is completed, and could cause customers and others that deal with us to seek to change existing business relationships with us.
Removed
Future acquisitions could be material to the Company and it may issue additional shares of stock to pay for those acquisitions, which would dilute current shareholder’s ownership interests. 21 Table of Contents If the goodwill that we recorded in connection with a business acquisition becomes impaired, it could have a significant negative impact on our profitability.
Added
Retention of certain of our employees may be challenging while the merger is pending, as certain employees may experience uncertainty about their future roles with us or First Merchants Corporation.
Removed
Our inability to attract, hire or retain key personnel could have a material adverse effect on our business, results of operations and financial condition.
Added
If key employees depart because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with us or First Merchants Corporation, our business could be harmed.
Added
We rely on the secure processing, storage and transmission of confidential and other information on our computer systems and networks.
Added
We have acquired other financial institutions and have recorded goodwill in connection with those transactions. Goodwill represents the amount of consideration exchanged over the fair value of net assets we acquired in the purchase of another financial institution.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeMeasures Taken to Mitigate Cybersecurity Risks To mitigate the risk of cyber threats, we have implemented a comprehensive set of technical, organizational, and procedural safeguards that are designed utilizing the Cybersecurity Framework of the National Institute and Standards and Technology (U.S.
Biggest changeOur independent auditors periodically review our processes, systems and controls related to our information security program to ensure they are operating effectively. 24 Table of Contents Measures Taken to Mitigate Cybersecurity Risks To mitigate the risk of cyber threats, we have implemented a comprehensive set of technical, organizational, and procedural safeguards that are designed utilizing the Cybersecurity Framework of the National Institute and Standards and Technology (U.S.
Regular audits are conducted to identify and address any vulnerabilities in our data storage and transmission practices. 25 Table of Contents ● Employee Training and Awareness: We conduct regular cybersecurity training and awareness programs for employees at all levels to ensure they understand and follow best practices in identifying and reporting potential cyber threats, including phishing attacks and social engineering tactics. ● Third-Party Risk Management: We assess the cybersecurity practices of third-party vendors and partners, particularly those with access to sensitive information or critical systems and require them to adhere to security standards that align with our own policies. ● Incident Response: We have a detailed Incident Response Plan that outlines how we would respond to an actual or potential cybersecurity incident.
Regular audits are conducted to identify and address any vulnerabilities in our data storage and transmission practices. ● Employee Training and Awareness: We conduct regular cybersecurity training and awareness programs for employees at all levels to ensure they understand and follow best practices in identifying and reporting potential cyber threats, including phishing attacks and social engineering tactics. ● Third-Party Risk Management: We assess the cybersecurity practices of third-party vendors and partners, particularly those with access to sensitive information or critical systems and require them to adhere to security standards that align with our own policies . ● Incident Response: We have a detailed Incident Response Plan that outlines how we would respond to an actual or potential cybersecurity incident.
We remain committed to continually improving our cybersecurity infrastructure and to monitoring for new and evolving threats. ​ 26 Table of Contents
We remain committed to continually improving our cybersecurity infrastructure and to monitoring for new and evolving threats. ​ 25 Table of Contents
We engage in regular monitoring and assessments of our technology infrastructure utilizing our internal staff and third-party specialist. Our independent auditors periodically review our processes, systems and controls related to our information security program to ensure they are operating effectively.
We engage in regular monitoring and assessments of our technology infrastructure utilizing our internal staff and third-party specialist.

Item 2. Properties

Properties — owned and leased real estate

4 edited+1 added−1 removed1 unchanged
Biggest changeThe Company acquired commercial property in Jeffersonville, Indiana, in October 2019 upon which we renovated the existing building for the purpose of housing the Company’s operations offices. The Company purchased a 21.94 acre parcel of land in Floyds Knobs, Indiana, in July 2021 upon which it intends to construct a branch office.
Biggest changeThe Company purchased a 1.94 acre parcel of land in Floyds Knobs, Indiana, in July 2021 upon which it intends to construct a branch office. The Company also rents additional office space and equipment under operating lease agreements that expire at different dates through August 2028.
The following table sets forth certain information relating to these facilities as of September 30, 2024. ​ ​ ​ ​ ​ Year ​ Owned/ Location ​ Opened ​ Leased Main Office: ​ ​ ​ ​ ​ Jeffersonville Main Office 702 North Shore Drive, Suite 300 Jeffersonville, Indiana ​ 2019 ​ Owned ​ ​ ​ ​ ​ Branch Offices: ​ ​ ​ ​ ​ ​ ​ Clarksville Office 501 East Lewis & Clark Parkway Clarksville, Indiana ​ 1968 ​ Owned ​ ​ ​ ​ ​ Jeffersonville – 10 th Street Office 3538 E 10 th Street Jeffersonville, Indiana ​ 2020 ​ Owned ​ ​ ​ ​ ​ Charlestown Office 1100 Market Street Charlestown, Indiana ​ 1993 ​ Owned ​ ​ ​ ​ ​ Georgetown Office 1000 Copperfield Drive Georgetown, Indiana ​ 2003 ​ Owned ​ ​ ​ ​ ​ Jeffersonville - Court Avenue Office 202 East Court Avenue Jeffersonville, Indiana ​ 1986 ​ Owned ​ ​ ​ ​ ​ Sellersburg Office 125 Hunter Station Way Sellersburg, Indiana ​ 1995 ​ Owned ​ ​ ​ ​ ​ Corydon Office 900 Hwy 62 NW Corydon, Indiana ​ 1996 ​ Owned ​ ​ ​ ​ ​ Salem Office 1336 S Jackson Street Salem, Indiana ​ 1995 ​ Owned ​ ​ ​ ​ ​ English Office 200 Indiana Avenue English, Indiana ​ 1925 ​ Owned ​ ​ ​ ​ ​ Marengo Office 165 E State Rd 64 Marengo, Indiana ​ 1984 ​ Owned ​ ​ ​ ​ ​ Lanesville Office 7340 Main Street NE Lanesville, Indiana ​ 1948 ​ Owned ​ ​ ​ ​ ​ Elizabeth Office 8160 Beech Street SE Elizabeth, Indiana ​ 1975 ​ Owned ​ ​ ​ ​ ​ New Albany Office 2218 State Street New Albany, Indiana ​ 2013 ​ Leased ​ ​ ​ ​ ​ Odon Office 501 West Main Street Odon, Indiana ​ 1982 ​ Owned ​ ​ ​ ​ ​ Montgomery Office 478 West Meyers Street Montgomery, Indiana ​ 1992 ​ Owned ​ ​ 27 Table of Contents The Company purchased an 8.097 acre parcel of land in Jeffersonville, Indiana, in July 2013 upon which it intended to construct an office building, relocate its corporate headquarters, and subsequently divest of additional unused acreage in future years.
The following table sets forth certain information relating to these facilities as of September 30, 2025. ​ ​ ​ ​ ​ Year ​ Owned/ Location ​ Opened ​ Leased Main Office: ​ ​ ​ ​ ​ Jeffersonville Main Office 702 North Shore Drive, Suite 300 Jeffersonville, Indiana ​ 2019 ​ Owned ​ ​ ​ ​ ​ Branch Offices: ​ ​ ​ ​ ​ ​ ​ Clarksville Office 501 East Lewis & Clark Parkway Clarksville, Indiana ​ 1968 ​ Owned ​ ​ ​ ​ ​ Jeffersonville – 10 th Street Office 3538 E 10 th Street Jeffersonville, Indiana ​ 2020 ​ Owned ​ ​ ​ ​ ​ Charlestown Office 1100 Market Street Charlestown, Indiana ​ 1993 ​ Owned ​ ​ ​ ​ ​ Georgetown Office 1000 Copperfield Drive Georgetown, Indiana ​ 2003 ​ Owned ​ ​ ​ ​ ​ Jeffersonville - Court Avenue Office 202 East Court Avenue Jeffersonville, Indiana ​ 1986 ​ Owned ​ ​ ​ ​ ​ Sellersburg Office 125 Hunter Station Way Sellersburg, Indiana ​ 1995 ​ Owned ​ ​ ​ ​ ​ Corydon Office 900 Hwy 62 NW Corydon, Indiana ​ 1996 ​ Owned ​ ​ ​ ​ ​ Salem Office 1336 S Jackson Street Salem, Indiana ​ 1995 ​ Owned ​ ​ ​ ​ ​ English Office 200 Indiana Avenue English, Indiana ​ 1925 ​ Owned ​ ​ ​ ​ ​ Marengo Office 165 E State Rd 64 Marengo, Indiana ​ 1984 ​ Owned ​ ​ ​ ​ ​ Lanesville Office 7340 Main Street NE Lanesville, Indiana ​ 1948 ​ Owned ​ ​ ​ ​ ​ Elizabeth Office 8160 Beech Street SE Elizabeth, Indiana ​ 1975 ​ Owned ​ ​ ​ ​ ​ New Albany Office 2218 State Street New Albany, Indiana ​ 2013 ​ Leased ​ ​ ​ ​ ​ Odon Office 501 West Main Street Odon, Indiana ​ 1982 ​ Owned ​ ​ ​ ​ ​ Montgomery Office 478 West Meyers Street Montgomery, Indiana ​ 1992 ​ Owned ​ ​ 26 Table of Contents The Company purchased an 8.1 acre parcel of land in Jeffersonville, Indiana, in July 2013 upon which it intended to construct an office building, relocate its corporate headquarters, and subsequently divest of additional unused acreage in future years.
However, in October 2018, the Company acquired an office building for $7.5 million in Jeffersonville, Indiana, to which it has relocated its corporate headquarters. In September 2022, the Company sold an 4.19 acre parcel of the land previously purchased in Jeffersonville, Indiana.
However, in October 2018, the Company acquired an office building for $7.5 million in Jeffersonville, Indiana, to which it has relocated its corporate headquarters. In September 2022, the Company sold 4.2 acres of the 8.1 acre parcel of land and sold another 0.9 acres in February 2025.
The Company also rents additional office space and equipment under operating lease agreements that expire at different dates through August 2028. See Note 16 of the Notes to Consolidated Financial Statements beginning on page F-1 of this annual report for additional information regarding the Company’s operating leases. ​
See Note 16 of the Notes to Consolidated Financial Statements beginning on page F-1 of this annual report for additional information regarding the Company’s operating leases. ​
Removed
As of September 30, 2024, the 3.907 acre parcel of land, which has a carrying value of approximately $203,000, is listed for sale and is included in other real estate owned, held for sale on the balance sheet of the Consolidated Financial Statements.
Added
The Company retains ownership of a 3.0 acre parcel upon which intends to construct a branch office. The Company purchased a 0.5 acre parcel of land in Washington, Indiana, in December 2023 upon which it intends to construct a branch office.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeWe are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. The Bank is in discussions with the Federal Reserve Board regarding an alleged violation of law or regulation occurring during 2019.
Biggest changeWe are not a party to any pending legal proceedings that we believe would have a material adverse effect on our financial condition, results of operations or cash flows. ​ Item 4. MINE SAFETY DISCLOSURES Not applicable. ​ 27 Table of Contents PART II
Removed
These discussions with the Federal Reserve Board regarding the allegation began in March 2023. The Bank is cooperating with the Federal Reserve Board and continues to review this matter internally and with external legal counsel. The foregoing could result in enforcement action against the Bank, including remedial measures, but is not expected to include civil money penalties.
Removed
The Company has not accrued a loss contingency for this pending litigation at September 30, 2024 in the consolidated financial statements. ​ Item 4. MINE SAFETY DISCLOSURES Not applicable. ​ 28 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

11 edited+2 added−0 removed6 unchanged
Biggest changeThe restricted shares and stock options granted vest ratably over one year or five years and, once vested, the stock options are exercisable in whole or in part for a period up to ten years from the date of the award. ​ Item 6. [RESERVED] ​ 30 Table of Contents
Biggest changeThe restricted shares and stock options granted vest ratably over one year or five years and, once vested, the stock options are exercisable in whole or in part for a period up to ten years from the date of the award. ​ In December 2024, the Company adopted the 2025 Equity Incentive Plan (“2025 Plan”), which the Company’s shareholders approved in February 2025.
The 2010 Plan provided for the award of stock options and restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the Plan may not exceed 1.1 million shares, consisting of 762,612 stock options and 305,043 shares of restricted stock.
The 2010 Plan provided for the award of stock options and restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the 2010 Plan may not exceed 1.1 million shares, consisting of 762,612 stock options and 305,043 shares of restricted stock.
The 2016 Plan provides for the award of stock options and restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the Plan may not exceed 264,000 shares, consisting of 198,000 stock options and 66,000 shares of restricted stock.
The 2016 Plan provides for the award of stock options and restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the 2016 Plan may not exceed 264,000 shares, consisting of 198,000 stock options and 66,000 shares of restricted stock.
The 2021 Plan provides for the award of stock options and restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the Plan may not exceed 356,058 shares, consisting of 267,043 stock options and 89,015 shares of restricted stock.
The 2021 Plan provides for the award of stock options and restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the 2021 Plan may not exceed 356,058 shares, consisting of 267,043 stock options and 89,015 shares of restricted stock.
The following table presents information regarding the Company’s stock repurchase activity during the quarter ended September 30, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (d) ​ ​ ​ ​ ​ ​ ​ (c) ​ Maximum number ​ ​ ​ ​ ​ ​ ​ Total number ​ (or appropriate ​ ​ ​ ​ ​ ​ ​ of shares (or ​ dollar value) of ​ ​ (a) ​ (b) ​ units) purchased ​ shares (or units) that ​ ​ Total number ​ Average price ​ as part of publicly ​ may yet be ​ ​ of shares (or ​ paid per share ​ announced plans ​ purchased under Period ​ units) purchased ​ (or unit) ​ or programs (1) ​ the plans or programs July 1, 2024 through July 31, 2024 ​ — ​ $ — ​ — ​ 22,453 August 1, 2024 through August 31, 2024 ​ — ​ $ — ​ — ​ 22,453 September 1, 2024 through September 30, 2024 ​ — ​ $ — ​ — ​ 22,453 Total — ​ $ — — 22,453 ​ Equity Compensation Plan Information The following table sets forth information as of September 30, 2024 about Company common stock that may be issued under the Company’s equity compensation plans.
The following table presents information regarding the Company’s stock repurchase activity during the quarter ended September 30, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (d) ​ ​ ​ ​ ​ ​ ​ (c) ​ Maximum number ​ ​ ​ ​ ​ ​ ​ Total number ​ (or appropriate ​ ​ ​ ​ ​ ​ ​ of shares (or ​ dollar value) of ​ ​ (a) ​ (b) ​ units) purchased ​ shares (or units) that ​ ​ Total number ​ Average price ​ as part of publicly ​ may yet be ​ ​ of shares (or ​ paid per share ​ announced plans ​ purchased under Period ​ units) purchased ​ (or unit) ​ or programs (1) ​ the plans or programs July 1, 2025 through July 31, 2025 ​ — ​ $ — ​ — ​ 8,658 August 1, 2025 through August 31, 2025 ​ — ​ $ — ​ — ​ 8,658 September 1, 2025 through September 30, 2025 ​ — ​ $ — ​ — ​ 8,658 Total — ​ $ — — 8,658 ​ Equity Compensation Plan Information The following table sets forth information as of September 30, 2025 about Company common stock that may be issued under the Company’s equity compensation plans.
There were no shares repurchased under either stock repurchase plan during the quarter ended September 30, 2024.
There were no shares repurchased under either stock repurchase plan during the quarter ended September 30, 2025.
As of September 30, 2024, grants outstanding under the 2010 Plan included 305,043 restricted shares, 559,521 incentive stock options and 203,091 non-statutory stock options to directors, officers and key employees.
As of September 30, 2025, grants outstanding under the 2010 Plan included 305,043 restricted shares, 559,521 incentive stock options and 201,591 non-statutory stock options to directors, officers and key employees.
All plans were approved by the Company’s stockholders. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of securities ​ ​ ​ ​ Number of securities remaining ​ ​ to be issued upon ​ Weighted-average ​ available for future issuance under ​ ​ exercise of outstanding ​ exercise price of ​ equity compensation plans ​ ​ options, warrants and ​ outstanding options, ​ (excluding securities reflected in ​ ​ rights ​ warrants and rights ​ column (a)) Plan category (a) (b) (c) Equity compensation plans approved by security holders ​ 459,547 ​ $ 20.09 ​ 15,160 ​ ​ ​ ​ ​ Equity compensation plans not approved by security holders ​ N/A ​ ​ N/A ​ N/A ​ ​ Total 459,547 ​ $ 20.09 15,160 ​ 29 Table of Contents In December 2009 the Company adopted the 2010 Equity Incentive Plan (“2010 Plan”), which the Company’s shareholders approved in February 2010.
All plans were approved by the Company’s stockholders. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number of securities ​ ​ ​ ​ Number of securities remaining ​ ​ to be issued upon ​ Weighted-average ​ available for future issuance under ​ ​ exercise of outstanding ​ exercise price of ​ equity compensation plans ​ ​ options, warrants and ​ outstanding options, ​ (excluding securities reflected in ​ ​ rights ​ warrants and rights ​ column (a)) Plan category (a) (b) (c) Equity compensation plans approved by security holders ​ 430,405 ​ $ 19.47 ​ 82,105 ​ ​ ​ ​ ​ Equity compensation plans not approved by security holders ​ N/A ​ ​ N/A ​ N/A ​ ​ Total 430,405 ​ $ 19.47 82,105 ​ 28 Table of Contents In December 2009 the Company adopted the 2010 Equity Incentive Plan (“2010 Plan”), which the Company’s shareholders approved in February 2010.
As of December 6, 2024, the Company had approximately 218 holders of record and 6,898,157 shares of common stock outstanding. The figure of shareholders of record does not reflect the number of persons whose shares are in nominee or “street” name accounts through brokers.
As of December 5, 2025, the Company had approximately 227 holders of record and 7,015,080 shares of common stock outstanding. The figure of shareholders of record does not reflect the number of persons whose shares are in nominee or “street” name accounts through brokers.
As of September 30, 2024, grants outstanding under the 2016 Plan included 64,500 restricted shares, 156,600 incentive stock options and 42,300 non-statutory stock options to directors, officers and key employees.
As of September 30, 2025, grants outstanding under the 2016 Plan included 66,000 restricted shares, 147,690 incentive stock options and 44,550 non-statutory stock options to directors, officers and key employees.
As of September 30, 2024, grants outstanding under the 2021 Plan included 84,425 shares of restricted stock, 234,733 incentive stock options and 31,500 non-statutory stock options to directors, officers and key employees.
As of September 30, 2025, grants outstanding under the 2021 Plan included 89,015 shares of restricted stock, 240,913 incentive stock options and 26,130 non-statutory stock options to directors, officers and key employees.
Added
The 2025 Plan provides for the award of restricted stock. The aggregate number of shares of the Company’s common stock available for issuance under the 2025 Plan may not exceed 138,000 shares, consisting entirely of restricted stock. As of September 30, 2025, grants outstanding under the 2025 Plan included 55,895 of restricted stock.
Added
The restricted shares vest ratably over one year or five years. ​ Item 6. [RESERVED] ​ 29 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following is only a summary and should be read in conjunction with the audited consolidated financial statements and notes thereto beginning on page F-1 of this annual report. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, (In thousands) 2024 2023 2022 2021 2020 Financial Condition Data: ​ ​ ​ ​ ​ Total assets ​ $ 2,450,368 ​ $ 2,288,854 ​ $ 2,093,725 ​ $ 1,721,394 ​ $ 1,764,625 Cash and cash equivalents ​ 52,142 ​ 30,845 ​ 41,665 ​ 33,428 ​ 33,726 Securities available-for-sale ​ 248,679 ​ 227,739 ​ 316,517 ​ 206,681 ​ 201,965 Securities held-to-maturity ​ 1,040 ​ 1,300 ​ 1,558 ​ 1,837 ​ 2,102 Loans held for sale ​ 25,716 ​ 45,855 ​ 60,462 ​ 214,940 ​ 285,525 Loans, net ​ 1,963,852 ​ 1,770,243 ​ 1,474,544 ​ 1,075,936 ​ 1,090,063 Deposits ​ 1,880,881 ​ 1,681,794 ​ ​ 1,515,834 ​ ​ 1,227,580 ​ ​ 1,048,076 Borrowings from FHLB ​ 301,640 ​ 363,183 ​ 307,303 ​ 250,000 ​ 310,858 Other borrowings ​ 48,603 ​ 48,444 ​ 88,206 ​ 19,865 ​ 194,631 Stockholders’ equity ​ 177,115 ​ 150,981 ​ 151,565 ​ 180,377 ​ 157,272 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended September 30, (In thousands) 2024 2023 2022 2021 2020 Operating Data: ​ ​ ​ ​ ​ ​ Interest income ​ $ 121,988 ​ $ 103,229 ​ $ 71,194 ​ $ 65,259 ​ $ 57,699 Interest expense ​ 63,926 ​ 41,655 ​ 10,542 ​ 8,087 ​ 10,538 Net interest income ​ 58,062 ​ 61,574 ​ 60,652 ​ 57,172 ​ 47,161 Total provision (credit) for credit losses ​ 3,092 ​ 2,612 ​ 1,908 ​ (1,767) ​ 7,962 Net interest income after provision (credit) for loan losses ​ 54,970 ​ 58,962 ​ 58,744 ​ 58,939 ​ 39,199 Noninterest income ​ 12,530 ​ 25,342 ​ 51,227 ​ 120,436 ​ 133,351 Noninterest expense ​ 52,890 ​ 76,122 ​ 92,662 ​ 139,409 ​ 125,808 Income before income taxes ​ 14,610 ​ 8,182 ​ 17,309 ​ 39,966 ​ 46,742 Income tax expense ​ 1,018 ​ 10 ​ 1,923 ​ 9,997 ​ 12,661 Net income ​ ​ 13,592 ​ ​ 8,172 ​ ​ 15,386 ​ ​ 29,969 ​ ​ 34,081 Less: net income attributable to noncontrolling interests ​ — ​ — ​ — ​ 402 ​ 727 Net income attributable to First Savings Financial Group ​ ​ 13,592 ​ ​ 8,172 ​ ​ 15,386 ​ ​ 29,567 ​ ​ 33,354 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended September 30, ​ 2024 2023 2022 2021 2020 Per Share Data (1): ​ ​ ​ ​ ​ Net income per common share, basic ​ $ 1.99 ​ $ 1.19 ​ $ 2.18 ​ $ 4.16 ​ $ 4.72 Net income per common share, diluted ​ 1.98 ​ 1.19 ​ 2.15 ​ 4.12 ​ 4.68 Dividends per common share ​ 0.59 ​ 0.55 ​ 0.51 ​ 0.36 ​ 0.22 ​ (1) Per share amounts have been adjusted to reflect the three-for-one stock split effective September 15, 2021. 33 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended September 30, ​ 2024 2023 2022 2021 2020 Performance Ratios: ​ Return on average assets 0.58 % 0.37 % 0.83 % 1.69 % 2.27 % ​ ​ ​ ​ ​ ​ ​ Return on average equity 8.31 5.04 8.65 17.59 26.06 ​ ​ ​ ​ ​ ​ ​ ​ Return on average common stockholders’ equity 8.31 5.04 8.65 17.37 25.46 ​ ​ ​ ​ ​ ​ ​ ​ Interest rate spread (1) 2.26 2.69 3.55 3.54 3.37 ​ ​ ​ ​ ​ ​ ​ ​ Net interest margin (2) 2.68 3.10 3.72 3.67 3.55 ​ ​ ​ ​ ​ ​ ​ ​ Other expenses to average assets 2.24 3.43 5.01 7.95 8.58 ​ ​ ​ ​ ​ ​ ​ ​ Efficiency ratio (3) 74.92 87.58 82.82 78.49 69.70 ​ ​ ​ ​ ​ ​ ​ ​ Efficiency ratio (excluding nonrecurring items) (4) 74.92 80.61 81.03 78.51 69.86 ​ ​ ​ ​ ​ ​ ​ ​ Average interest-earning assets to average interest-bearing liabilities 114.95 120.17 126.40 125.92 123.65 ​ ​ ​ ​ ​ ​ ​ ​ Dividend payout ratio 29.80 46.41 23.68 8.59 4.77 ​ ​ ​ ​ ​ ​ ​ ​ Average equity to average assets 6.94 7.31 9.61 9.71 8.92 ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: ​ ​ ​ ​ ​ ​ Total capital (to risk-weighted assets): ​ ​ ​ ​ ​ ​ Consolidated 12.53 % 11.47 % 12.33 % 14.28 % 13.37 % Bank 12.42 11.27 11.44 13.60 12.75 ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital (to risk-weighted assets): ​ ​ ​ ​ ​ ​ Consolidated 9.20 8.22 8.73 11.76 10.58 ​ Bank 11.38 10.42 10.59 12.54 11.53 ​ ​ ​ ​ ​ ​ ​ ​ Common equity Tier 1 capital (to risk-weighted assets): ​ ​ ​ ​ ​ ​ Consolidated 9.20 8.22 8.73 11.76 10.58 ​ Bank 11.38 10.42 10.59 12.54 11.53 ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital (to average adjusted total assets): ​ ​ ​ ​ ​ ​ Consolidated 7.42 7.24 7.96 9.73 8.53 ​ Bank 9.18 9.17 9.58 10.07 9.37 ​ ​ (1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost on average interest-bearing liabilities.
Biggest changeThe following is only a summary and should be read in conjunction with the audited consolidated financial statements and notes thereto beginning on page F-1 of this annual report. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, (In thousands) 2025 2024 2023 2022 2021 Financial Condition Data: ​ ​ ​ ​ ​ Total assets ​ $ 2,399,532 ​ $ 2,450,368 ​ $ 2,288,854 ​ $ 2,093,725 ​ $ 1,721,394 Cash and cash equivalents ​ 31,851 ​ 52,142 ​ 30,845 ​ 41,665 ​ 33,428 Securities available-for-sale ​ 251,842 ​ 248,679 ​ 227,739 ​ 316,517 ​ 206,681 Securities held-to-maturity ​ 778 ​ 1,040 ​ 1,300 ​ 1,558 ​ 1,837 Loans held for sale ​ 51,454 ​ 25,716 ​ 45,855 ​ 60,462 ​ 214,940 Loans, net ​ 1,886,818 ​ 1,963,852 ​ 1,770,243 ​ 1,474,544 ​ 1,075,936 Deposits ​ 1,709,882 ​ 1,880,881 ​ ​ 1,681,794 ​ ​ 1,515,834 ​ ​ 1,227,580 Borrowings from FHLB ​ 435,000 ​ 301,640 ​ 363,183 ​ 307,303 ​ 250,000 Other borrowings ​ 28,762 ​ 48,603 ​ 48,444 ​ 88,206 ​ 19,865 Stockholders’ equity ​ 193,479 ​ 177,115 ​ 150,981 ​ 151,565 ​ 180,377 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended September 30, (In thousands) 2025 2024 2023 2022 2021 Operating Data: ​ ​ ​ ​ ​ ​ Interest income ​ $ 127,527 ​ $ 121,988 ​ $ 103,229 ​ $ 71,194 ​ $ 65,259 Interest expense ​ 62,219 ​ 63,926 ​ 41,655 ​ 10,542 ​ 8,087 Net interest income ​ 65,308 ​ 58,062 ​ 61,574 ​ 60,652 ​ 57,172 Total provision (credit) for credit losses ​ 325 ​ 3,092 ​ 2,612 ​ 1,908 ​ (1,767) Net interest income after provision (credit) for loan losses ​ 64,983 ​ 54,970 ​ 58,962 ​ 58,744 ​ 58,939 Noninterest income ​ 18,842 ​ 12,530 ​ 25,342 ​ 51,227 ​ 120,436 Noninterest expense ​ 56,962 ​ 52,890 ​ 76,122 ​ 92,662 ​ 139,409 Income before income taxes ​ 26,863 ​ 14,610 ​ 8,182 ​ 17,309 ​ 39,966 Income tax expense ​ 3,702 ​ 1,018 ​ 10 ​ 1,923 ​ 9,997 Net income ​ ​ 23,161 ​ ​ 13,592 ​ ​ 8,172 ​ ​ 15,386 ​ ​ 29,969 Less: net income attributable to noncontrolling interests ​ — ​ — ​ — ​ — ​ 402 Net income attributable to First Savings Financial Group ​ ​ 23,161 ​ ​ 13,592 ​ ​ 8,172 ​ ​ 15,386 ​ ​ 29,567 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended September 30, ​ 2025 2024 2023 2022 2021 Per Share Data: ​ ​ ​ ​ ​ Net income per common share, basic ​ $ 3.37 ​ $ 1.99 ​ $ 1.19 ​ $ 2.18 ​ $ 4.16 Net income per common share, diluted ​ 3.32 ​ 1.98 ​ 1.19 ​ 2.15 ​ 4.12 Dividends per common share ​ 0.63 ​ 0.59 ​ 0.55 ​ 0.51 ​ 0.36 ​ 31 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended September 30, ​ 2025 2024 2023 2022 2021 Performance Ratios: ​ Return on average assets 0.96 % 0.58 % 0.37 % 0.83 % 1.69 % ​ ​ ​ ​ ​ ​ ​ Return on average equity 12.80 8.31 5.04 8.65 17.59 ​ ​ ​ ​ ​ ​ ​ ​ Return on average common stockholders’ equity 12.80 8.31 5.04 8.65 17.37 ​ ​ ​ ​ ​ ​ ​ ​ Interest rate spread (1) 2.55 2.26 2.69 3.55 3.54 ​ ​ ​ ​ ​ ​ ​ ​ Net interest margin (2) 2.94 2.68 3.10 3.72 3.67 ​ ​ ​ ​ ​ ​ ​ ​ Other expenses to average assets 2.37 2.24 3.43 5.01 7.95 ​ ​ ​ ​ ​ ​ ​ ​ Efficiency ratio (3) 67.69 74.92 87.58 82.82 78.49 ​ ​ ​ ​ ​ ​ ​ ​ Efficiency ratio (excluding nonrecurring items) (4) 68.05 74.92 80.61 81.03 78.51 ​ ​ ​ ​ ​ ​ ​ ​ Average interest-earning assets to average interest-bearing liabilities 114.24 114.95 120.17 126.40 125.92 ​ ​ ​ ​ ​ ​ ​ ​ Dividend payout ratio 18.93 29.80 46.41 23.68 8.59 ​ ​ ​ ​ ​ ​ ​ ​ Average equity to average assets 7.53 6.94 7.31 9.61 9.71 ​ ​ ​ ​ ​ ​ ​ ​ Capital Ratios: ​ ​ ​ ​ ​ ​ Total capital (to risk-weighted assets): ​ ​ ​ ​ ​ ​ Consolidated 12.77 % 12.53 % 11.47 % 12.33 % 14.28 % Bank 12.58 12.42 11.27 11.44 13.60 ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital (to risk-weighted assets): ​ ​ ​ ​ ​ ​ Consolidated 10.24 9.20 8.22 8.73 11.76 ​ Bank 11.52 11.38 10.42 10.59 12.54 ​ ​ ​ ​ ​ ​ ​ ​ Common equity Tier 1 capital (to risk-weighted assets): ​ ​ ​ ​ ​ ​ Consolidated 10.24 9.20 8.22 8.73 11.76 ​ Bank 11.52 11.38 10.42 10.59 12.54 ​ ​ ​ ​ ​ ​ ​ ​ Tier 1 capital (to average adjusted total assets): ​ ​ ​ ​ ​ ​ Consolidated 8.22 7.42 7.24 7.96 9.73 ​ Bank 9.25 9.18 9.17 9.58 10.07 ​ (1) Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost on average interest-bearing liabilities.
The increase in net income for 2024 compared to 2023 was due to a decrease in noninterest expense of $23.2 million, partially offset by a $12.8 million decrease in noninterest income, a $3.5 million decrease in net interest income and a $480,000 increase in total provision for credit losses.
The increase in net income for 2024 compared to 2023 was due to a decrease in noninterest expense of $23.2 million, partially offset by a $12.8 million decrease in noninterest income, a $3.5 million decrease in net interest income and a $480,000 increase in total provision for credit losses. Net Interest Income.
Interest income on loans increased $20.6 million, or 22.9%, from $89.8 million for 2023 to $110.4 million for 2024, due primarily to an increase in the average balance of loans outstanding of $245.8 million, from $1.68 billion for 2023 to $1.93 billion for 2024, and an increase in the average tax-equivalent yield on loans from 5.36% for 2023 to 5.76% for 2024.
In 2024, interest income on loans increased $20.6 million, or 22.9%, from $89.8 million for 2023 to $110.4 million for 2024, due primarily to an increase in the average balance of loans outstanding of $245.8 million, from $1.68 billion for 2023 to $1.93 billion for 2024, and an increase in the average tax-equivalent yield on loans from 5.36% for 2023 to 5.76% for 2024.
Interest income on investment securities decreased $2.1 million, or 19.2%, primarily due to a decrease in the average balance of investment securities of $68.2 million, from $328.8 million for 2023 to $260.6 million for 2024, partially offset by an increase in the average tax equivalent yield on investments from 3.97% for 2023 to 3.99% for 2024.
In 2024, interest income on investment securities decreased $2.1 million, or 19.2%, primarily due to a decrease in the average balance of investment securities of $68.2 million, from $328.8 million for 2023 to $260.6 million for 2024, partially offset by an increase in the average tax equivalent yield on investments from 3.97% for 2023 to 3.99% for 2024.
Total interest expense increased $22.3 million, or 53.4%, due primarily to an increase in the average cost of funds from 2.44% for 2023 to 3.29% for 2024, and an increase in the average balance of interest-bearing liabilities of $233.2 million, from $1.71 billion for 2023 to $1.94 billion for 2024.
In 2024, total interest expense increased $22.3 million or 53.4%, due primarily to an increase in the average cost of funds from 2.44% for 2023 to 3.29% for 2024, and an increase in the average balance of interest-bearing liabilities of $233.2 million, from $1.71 billion for 2023 to $1.94 billion for 2024.
Noninterest income decreased $12.8 million, or 50.6%, from $25.3 million for the year ended September 30, 2023 to $12.5 million for the year ended September 30, 2024. The decrease was due primarily to a $14.1 million decrease in mortgage banking income due to the wind down of the Company’s national mortgage banking operations in 2024.
In 2024, noninterest income decreased $12.8 million, or 50.6%, from $25.3 million for the year ended September 30, 2023 to $12.5 million for the year ended September 30, 2024. The decrease was due primarily to a $14.1 million decrease in mortgage banking income due to the wind down of the Company’s national mortgage banking operations in 2024.
The Company recognized a provision for credit losses for loans of $3.5 million, a credit for unfunded lending commitments of $421,000, and a provision for credit losses for securities of $21,000 for the year ended September 30, 2024 compared to a provision for loan losses of $2.6 million only for 2023.
In 2024, the Company recognized a provision for credit losses for loans of $3.5 million, a credit for unfunded lending commitments of $421,000, and a provision for credit losses for securities of $21,000 for the year ended September 30, 2024 compared to a provision for loan losses of $2.6 million only for 2023.
Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit. For the year ended September 30, 2024, we did not engage in any off-balance sheet transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.
Such transactions are used primarily to manage customers’ requests for funding and take the form of loan commitments and lines of credit. For the year ended September 30, 2025, we did not engage in any off-balance sheet transactions reasonably likely to have a material effect on our financial condition, results of operations or cash flows.
We 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 September 30, 2024.
We 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 September 30, 2025.
We have the ability to attract and retain deposits by adjusting the interest rates offered. 51 Table of Contents 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.
We have the ability to attract and retain deposits by adjusting the interest rates offered. 48 Table of Contents 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.
A large loss could deplete the allowance and require increased provisions to replenish the allowance, which would adversely affect earnings. See Note 1 of the Notes to Consolidated Financial Statements beginning on page F-1 of this annual report for additional information regarding the methodology used to determine the allowance for credit losses. Goodwill Valuation.
A large loss could deplete the allowance and require increased provisions to replenish the allowance, which would adversely affect earnings. See Note 1 of the Notes to Consolidated Financial Statements beginning on page F-1 of this annual report for additional information regarding the methodology used to determine the allowance for credit losses.
If these maturing time deposits do not remain with us, we will be required to seek other sources of funds, including other certificates of deposit and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the time deposits due on or before September 30, 2025.
If these maturing time deposits do not remain with us, we will be required to seek other sources of funds, including other certificates of deposit and borrowings. Depending on market conditions, we may be required to pay higher rates on such deposits or other borrowings than we currently pay on the time deposits due on or before September 30, 2026.
Significant accounting policies, including the impact of recent accounting pronouncements, are discussed in Note 1 of the Notes to Consolidated Financial Statements. The policies considered to be the critical accounting policies are described below. 31 Table of Contents Allowance for Credit Losses. Determining the amount of the allowance for credit losses necessarily involves a high degree of judgment.
Significant accounting policies, including the impact of recent accounting pronouncements, are discussed in Note 1 of the Notes to Consolidated Financial Statements. The policies considered to be the critical accounting policies are described below. 30 Table of Contents Allowance for Credit Losses. Determining the amount of the allowance for credit losses necessarily involves a high degree of judgment.
Results of our simulation modeling, which assumes an immediate and sustained parallel shift in market interest rates, project that the Company’s EVE could change as follows, relative to our base case scenario, based on September 30, 2024 and 2023 financial information.
Results of our simulation modeling, which assumes an immediate and sustained parallel shift in market interest rates, project that the Company’s EVE could change as follows, relative to our base case scenario, based on September 30, 2025 and 2024 financial information.
Management’s Discussion and Analysis of Financial Condition and Results of Operation.” ​ Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Information required by this item is included herein beginning on page F-1. ​ Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ​ 52 Table of Contents
Management’s Discussion and Analysis of Financial Condition and Results of Operation.” ​ Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Information required by this item is included herein beginning on page F-1. ​ Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE None. ​ 49 Table of Contents
See “ Analysis of Nonperforming and Classified Assets ” included herein. It is management’s assessment that the allowance for credit losses at September 30, 2024 was adequate and appropriately reflected the current expected losses in the Bank’s loan portfolio at that date. Noninterest Income.
See “ Analysis of Nonperforming and Classified Assets ” included herein. It is management’s assessment that the allowance for credit losses at September 30, 2025 was adequate and appropriately reflected the current expected losses in the Bank’s loan portfolio at that date. Noninterest Income.
In addition, we 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 September 30, 2024.
In addition, we 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 September 30, 2025.
At September 30, 2024, the Bank exceeded all of its regulatory capital requirements. The Bank is considered “well capitalized” under regulatory guidelines. See “Item 1. Business — Regulation and Supervision — Regulation of Federal Savings Associations — Capital Requirement.” Off-Balance Sheet Arrangements.
At September 30, 2025, the Bank exceeded all of its regulatory capital requirements. The Bank is considered “well capitalized” under regulatory guidelines. See “Item 1. Business — Regulation and Supervision — Regulation of Federal Savings Associations — Capital Requirement.” Off-Balance Sheet Arrangements.
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. 49 Table of Contents 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, based on September 30, 2024 and 2023 financial information.
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. 46 Table of Contents 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, based on September 30, 2025 and 2024 financial information.
Our strategy for credit risk management focuses on having well-defined credit policies and uniform underwriting criteria and providing prompt attention to potential problem loans. 45 Table of Contents When a borrower fails to make a required loan payment, we take a number of steps to have the borrower cure the delinquency and restore the loan to current status.
Our strategy for credit risk management focuses on having well-defined credit policies and uniform underwriting criteria and providing prompt attention to potential problem loans. When a borrower fails to make a required loan payment, we take a number of steps to have the borrower cure the delinquency and restore the loan to current status.
Loans are generally placed on nonaccrual status when they become 90 days delinquent at which time the accrual of interest ceases and the allowance for any uncollectible accrued interest is established and charged against operations. Typically, payments received on a nonaccrual loan are first applied to the outstanding principal balance.
Loans are generally placed on nonaccrual status when they become 90 days delinquent at which time the accrual of interest ceases and the allowance for any uncollectible accrued 42 Table of Contents interest is established and charged against operations. Typically, payments received on a nonaccrual loan are first applied to the outstanding principal balance.
Any material increase in the allowance for credit losses may adversely affect our financial condition and results of operations. 47 Table of Contents Analysis of Loan Loss Experience.
Any material increase in the allowance for credit losses may adversely affect our financial condition and results of operations. 44 Table of Contents Analysis of Loan Loss Experience.
The efficiency ratio for 2023 excludes expenses of $1.4 million related to the core processing system conversion, $769,000 related to MSR valuation allowance for intended sale, $1.5 million related to SBA guaranteed loan contingency, $1.1 million related to mortgage banking loss contingencies and $1.2 million of professional fees related to the mortgage banking loss contingencies.
The efficiency ratio for 2023 excludes expenses of $1.4 million related to the core processing system conversion, $769,000 related to MSR valuation allowance for intended sale, $1.5 32 Table of Contents million related to SBA guaranteed loan contingency, $1.1 million related to mortgage banking loss contingencies and $1.2 million of professional fees related to the mortgage banking loss contingencies.
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. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and totaled $1.1 million, $1.2 million and $1.5 million for 2024, 2023 and 2022, respectively.
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. Nonaccrual loans are included in average balances only. Loan fees are included in interest income on loans and totaled $1.4 million, $1.1 million and $1.2 million for 2025, 2024 and 2023, respectively.
At September 30, 2024, the Company had liquid assets of $4.2 million on a stand-alone, unconsolidated basis. Our primary investing activities are the origination of loans and the purchase of securities. Our primary financing activities consist of activity in deposit accounts and FHLB borrowings.
At September 30, 2025, the Company had liquid assets of $3.4 million on a stand-alone, unconsolidated basis. Our primary investing activities are the origination of loans and the purchase of securities. Our primary financing activities consist of activity in deposit accounts and FHLB borrowings.
(3) Represents other expenses divided by the sum of net interest income and other income. 34 Table of Contents (4) Represents other expenses, excluding nonrecurring items as discussed below, divided by the sum of net interest income and other income, excluding income (loss) from tax credit investments discussed below.
(3) Represents other expenses divided by the sum of net interest income and other income. (4) Represents other expenses, excluding nonrecurring items as discussed below, divided by the sum of net interest income and other income, excluding income (loss) from tax credit investments discussed below.
The Company reported net income of $13.6 million ($1.98 per common share diluted) for the year ended September 30, 2024, compared to net income of $8.2 million ($1.19 per common share diluted) for the year ended September 30, 2023.
Net income was $13.6 million ($1.98 per common share diluted) for the year ended September 30, 2024, compared to net income of $8.2 million ($1.19 per common share diluted) for the year ended September 30, 2023.
Land and land development loans totaled $17.7 million, or 0.9% of total loans at September 30, 2024, compared to $17.2 million, or 1.0% of total loans at September 30, 2023. These loans are primarily secured by vacant lots to be improved for residential and nonresidential development, and farmland.
Land and land development loans totaled $16.1 million, or 0.9% of total loans at September 30, 2025, compared to $17.7 million, or 0.9% of total loans at September 30, 2024. These loans are primarily secured by vacant lots to be improved for residential and nonresidential development, and farmland.
This is a non-GAAP financial measure that management believes is useful to investors in understanding the Company’s performance. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended September 30, ​ 2024 2023 2022 2021 2020 Asset Quality Ratios: ​ Allowance for credit losses as a percent of total loans 1.07 % 0.95 % 1.03 % 1.31 % 1.54 % ​ ​ ​ ​ ​ Allowance for credit losses as a percent of nonperforming loans 125.69 121.16 141.49 92.43 125.05 ​ ​ ​ ​ ​ ​ ​ ​ Net charge-offs to average outstanding loans during the period 0.03 0.06 0.06 0.07 0.09 ​ ​ ​ ​ ​ ​ ​ ​ Nonperforming loans as a percent of total loans 0.85 0.78 0.73 1.42 1.23 ​ ​ ​ ​ ​ ​ ​ ​ Nonperforming loans as a percent of total assets ​ 0.69 ​ 0.61 ​ 0.52 ​ 0.90 ​ 0.77 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonperforming assets as a percent of total assets 0.71 0.69 0.65 1.00 0.95 ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ ​ ​ ​ Number of full service branch offices 15 15 15 15 15 ​ Number of deposit accounts 51,104 49,226 48,122 46,361 44,852 ​ Number of loans 8,111 7,796 7,401 7,041 8,074 ​ ​ Balance Sheet Analysis Cash and Cash Equivalents.
This is a non-GAAP financial measure that management believes is useful to investors in understanding the Company’s performance. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At or For the Year Ended September 30, ​ 2025 2024 2023 2022 2021 Asset Quality Ratios: ​ Allowance for credit losses as a percent of total loans 1.06 % 1.07 % 0.95 % 1.03 % 1.31 % ​ ​ ​ ​ ​ ​ Allowance for credit losses as a percent of nonperforming loans 138.73 125.69 121.16 141.49 92.43 ​ ​ ​ ​ ​ ​ ​ ​ Net charge-offs to average outstanding loans during the period 0.04 0.03 0.06 0.06 0.07 ​ ​ ​ ​ ​ ​ ​ ​ Nonperforming loans as a percent of total loans 0.77 0.85 0.78 0.73 1.42 ​ ​ ​ ​ ​ ​ ​ ​ Nonperforming loans as a percent of total assets ​ 0.61 ​ 0.69 ​ 0.61 ​ 0.52 ​ 0.90 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonperforming assets as a percent of total assets 0.66 0.71 0.69 0.65 1.00 ​ ​ ​ ​ ​ ​ ​ ​ Other Data: ​ ​ ​ ​ ​ ​ Number of full service branch offices 15 15 15 15 15 ​ Number of deposit accounts 51,890 51,104 49,226 48,122 46,361 ​ Number of loans 7,693 8,111 7,796 7,401 7,041 ​ ​ Balance Sheet Analysis Cash and Cash Equivalents.
The decrease in accumulated other comprehensive loss was due primarily to decreasing long term market interest rates during the year ended September 30, 2024, which resulted in an increase in the fair value of securities available for sale. Results of Operations for the Years Ended September 30, 2024, 2023 and 2022 Overview.
The increase in accumulated other comprehensive loss was due primarily to increasing long term market interest rates during the year ended September 30, 2025, which resulted in a decrease in the fair value of securities available for sale. Results of Operations for the Years Ended September 30, 2025, 2024 and 2023 Overview.
There were no new FDMs made or modifications of existing FDMs during the year ended September 30, 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, (Dollars in thousands) 2024 2023 2022 2021 2020 ​ Nonaccrual loans ​ $ 16,942 ​ $ 13,948 ​ $ 10,856 ​ $ 15,000 ​ $ 13,615 ​ Accruing loans past due 90 days or more ​ — ​ — ​ — ​ 472 ​ — ​ Total nonperforming loans ​ 16,942 ​ 13,948 ​ 10,856 ​ 15,472 ​ 13,615 ​ Performing FDMs ​ — ​ 1,266 ​ 2,714 ​ 1,743 ​ 3,069 ​ Foreclosed real estate ​ 444 ​ 474 ​ — ​ — ​ — ​ Total nonperforming assets ​ $ 17,386 ​ $ 15,688 ​ $ 13,570 ​ $ 17,215 ​ $ 16,684 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual loans to total loans ​ ​ 0.85 % 0.78 % 0.73 % 1.38 % 1.23 % Total nonperforming loans to total loans ​ 0.85 ​ 0.78 ​ 0.73 ​ 1.42 ​ 1.23 ​ Total nonperforming loans to total assets ​ 0.69 ​ 0.61 ​ 0.52 ​ 0.90 ​ 0.77 ​ Total nonperforming assets to total assets ​ 0.71 ​ 0.69 ​ 0.65 ​ 1.00 ​ 0.95 ​ ​ Federal and state banking regulations require us to review and classify our assets on a regular basis.
There were no new FDMs made or modifications of existing FDMs during the year ended September 30, 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, (Dollars in thousands) 2025 2024 2023 2022 2021 ​ Nonaccrual loans ​ $ 14,625 ​ $ 16,942 ​ $ 13,948 ​ $ 10,856 ​ $ 15,000 ​ Accruing loans past due 90 days or more ​ — ​ — ​ — ​ — ​ 472 ​ Total nonperforming loans ​ 14,625 ​ 16,942 ​ 13,948 ​ 10,856 ​ 15,472 ​ Performing TDRs ​ — ​ — ​ 1,266 ​ 2,714 ​ 1,743 ​ Foreclosed real estate ​ 1,093 ​ 444 ​ 474 ​ — ​ — ​ Total nonperforming assets ​ $ 15,718 ​ $ 17,386 ​ $ 15,688 ​ $ 13,570 ​ $ 17,215 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nonaccrual loans to total loans ​ ​ 0.77 % 0.85 % 0.78 % 0.73 % 1.38 % Total nonperforming loans to total loans ​ 0.77 ​ 0.85 ​ 0.78 ​ 0.73 ​ 1.42 ​ Total nonperforming loans to total assets ​ 0.61 ​ 0.69 ​ 0.61 ​ 0.52 ​ 0.90 ​ Total nonperforming assets to total assets ​ 0.66 ​ 0.71 ​ 0.69 ​ 0.65 ​ 1.00 ​ ​ Federal and state banking regulations require us to review and classify our assets on a regular basis.
In-market commercial business loans increased $7.0 million during the year due primarily to increased commercial business lending opportunities in our primary market area. Management intends to continue to focus on pursuing commercial business loan opportunities, both within our primary market area as well as through various SBA loan programs, to further diversify the loan portfolio.
In-market commercial business loans decreased $1.2 million during the year due primarily to decreased commercial business lending opportunities in our primary market area. Management intends to continue to focus on pursuing commercial business loan opportunities, both within our primary market area as well as through various SBA loan programs, to further diversify the loan portfolio.
Our held to maturity securities portfolio consists of mortgage-backed securities issued by government sponsored enterprises and municipal bonds. Held to maturity securities decreased by $260,000 from $1.3 million at September 30, 2023 to $1.0 million at September 30, 2024, due primarily to maturities and principal repayments.
Our held to maturity securities portfolio consists of mortgage-backed securities issued by government sponsored enterprises and municipal bonds. Held to maturity securities decreased by $262,000 from $1.0 million at September 30, 2024 to $778,000 at September 30, 2025, due primarily to maturities and principal repayments.
Commercial business loans, including in-market commercial business loans and SBA commercial business loans, totaled $143.0 million, or 7.2% of total loans, at September 30, 2024 compared to $134.5 million, or 7.5% of total loans, at September 30, 2023.
Commercial business loans, including in-market commercial business loans and SBA commercial business loans, totaled $140.5 million, or 7.4% of total loans, at September 30, 2025 compared to $143.0 million, or 7.2% of total loans, at September 30, 2024.
We believe the large percentage of time deposits that mature within one year reflects customers’ hesitancy to invest their funds for long periods due to the recent higher interest rate environment and local competitive pressure. The balance also includes $509.2 million in brokered and reciprocal time deposits at September 30, 2024.
We believe the large percentage of time deposits that mature within one year reflects customers’ hesitancy to invest their funds for long periods due to the volatile interest rate environment and local competitive pressure. The balance also includes $219.9 million in brokered and reciprocal time deposits at September 30, 2025.
Deposit accounts, generally obtained from individuals and businesses throughout our primary market area, are our primary source of funds for lending and investments. Our deposit accounts are comprised of noninterest-bearing accounts, interest-bearing savings, checking and money market accounts and time deposits. Deposits increased $199.1 million from $1.68 billion at September 30, 2023 to $1.88 billion at September 30, 2024.
Deposit accounts, generally obtained from individuals and businesses throughout our primary market area, are our primary source of funds for lending and investments. Our deposit accounts are comprised of noninterest-bearing accounts, interest-bearing savings, checking and money market accounts and time deposits. Deposits decreased $171.0 million from $1.88 billion at September 30, 2024 to $1.71 billion at September 30, 2025.
The Company recognized income tax expense of $1.0 million for the year ended September 30, 2024, compared to $10,000 for the year ended September 30, 2023 and $1.9 million for the year ended September 30, 2022. The effective tax rate was 7.0%, 0.1% and 11.1%, for the years ended September 30, 2024, 2023 and 2022, respectively.
Income Tax Expense. The Company recognized income tax expense of $3.7 million for the year ended September 30, 2025, compared to $1.0 million for the year ended September 30, 2024 and $10,000 for the year ended September 30, 2023. The effective tax rate was 13.8%, 7.0% and 0.1%, for the years ended September 30, 2025, 2024 and 2023, respectively.
At September 30, 2023, residential construction loans totaled $24.9 million, or 1.4% of total loans, of which $3.3 million were speculative construction loans. Commercial construction loans totaled $9.2 million, or 0.5% of total loans, at September 30, 2024 compared to $14.6 million, or 0.8% of total loans at September 30, 2023.
At September 30, 2024, residential construction loans totaled $53.2 million, or 2.7% of total loans, of which $6.4 million were speculative construction loans. Commercial construction loans totaled $14.6 million, or 0.8% of total loans, at September 30, 2025 compared to $9.2 million, or 0.5% of total loans at September 30, 2024.
The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At September 30, 2024, cash and cash equivalents totaled $52.1 million. Securities classified as available-for-sale, amounting to $248.7 million, at September 30, 2024, provide additional sources of liquidity.
The levels of these assets depend on our operating, financing, lending and investing activities during any given period. At September 30, 2025, cash and cash equivalents totaled $31.9 million. Securities classified as available-for-sale, amounting to $251.8 million, at September 30, 2025, provide additional sources of liquidity.
This was partially offset by an increase in the average yield of interest earning assets from 4.35% for 2022 to 5.13% for 2023. 41 Table of Contents For the year ended September 30, 2024, total interest income increased $18.8 million, or 18.2%, as compared to 2023.
This was partially offset by an increase in the average yield of interest earning assets from 5.13% for 2023 to 5.55% for 2024. For the year ended September 30, 2025, total interest income increased $5.5 million, or 4.5%, as compared to 2024.
The simulated changes presented in the following table are within policy guidelines approved by the Company’s Board of Directors. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2024 ​ At September 30, 2023 ​ Immediate Change One Year Horizon ​ One Year Horizon in the Level Dollar ​ Percent ​ Dollar Percent of Interest Rates Change Change ​ Change Change ​ (Dollars in thousands) ​ 300bp ​ $ (6,833) (10.11) % $ (6,660) (11.71) % 200bp ​ (4,475) (6.62) ​ (4,349) (7.65) ​ 100bp ​ (2,486) (3.68) ​ (2,223) (3.91) ​ Static ​ ​ — ​ — ​ ​ — ​ — ​ (100)bp ​ 3,209 4.75 ​ 2,214 3.89 ​ (200)bp ​ ​ 6,339 ​ 9.38 ​ 4,451 ​ 7.83 ​ ​ At September 30, 2024, our simulated exposure to an increase in interest rates shows that an immediate and sustained increase in rates of 1.00% will decrease our net interest income by $2.5 million or 3.68% over a one year horizon compared to a flat interest rate scenario.
The simulated changes presented in the following table are within policy guidelines approved by the Company’s Board of Directors. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2025 ​ At September 30, 2024 ​ Immediate Change One Year Horizon ​ One Year Horizon in the Level Dollar ​ Percent ​ Dollar Percent of Interest Rates Change Change ​ Change Change ​ (Dollars in thousands) ​ 300bp ​ $ (9,027) (12.40) % $ (6,833) (10.11) % 200bp ​ (6,336) (8.70) ​ (4,475) (6.62) ​ 100bp ​ (3,606) (4.95) ​ (2,486) (3.68) ​ Static ​ ​ — ​ — ​ ​ — ​ — ​ (100)bp ​ 3,809 5.23 ​ 3,209 4.75 ​ (200)bp ​ ​ 7,686 ​ 10.56 ​ 6,339 ​ 9.38 ​ ​ At September 30, 2025, our simulated exposure to an increase in interest rates shows that an immediate and sustained increase in rates of 1.00% will decrease our net interest income by $3.6 million or 4.95% over a one year horizon compared to a flat interest rate scenario.
These loans are primarily secured by apartment buildings and other multi-tenant developments in our primary market area. Residential construction loans totaled $53.2 million, or 2.7% of total loans at September 30, 2024, of which $6.4 million were speculative construction loans.
These loans are primarily secured by apartment buildings and other multi-tenant developments in our primary market area. Residential construction loans totaled $25.3 million, or 1.3% of total loans at September 30, 2025, of which $6.5 million were speculative construction loans.
The following table sets forth an analysis of the allowance for credit losses for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, (Dollars in thousands) 2024 2023 2022 ​ Allowance for credit losses at beginning of period ​ $ 16,900 ​ $ 15,360 ​ $ 14,301 ​ ASU 2016 - 13 (CECL) implementation ​ ​ 1,429 ​ ​ — ​ ​ — ​ Provision for credit losses ​ 3,492 ​ 2,612 ​ 1,908 ​ Charge offs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate ​ 168 ​ 71 ​ 23 ​ Commercial real estate ​ — ​ — ​ — ​ Single tenant net lease ​ ​ — ​ ​ — ​ ​ — ​ SBA commercial real estate ​ ​ 58 ​ ​ 357 ​ ​ 110 ​ Multi-family ​ — ​ — ​ — ​ Residential construction ​ — ​ — ​ — ​ Commercial construction ​ ​ — ​ ​ — ​ ​ — ​ Land and land development ​ — ​ — ​ — ​ Commercial business ​ 34 ​ — ​ 91 ​ SBA commercial business ​ ​ 172 ​ ​ 569 ​ ​ 698 ​ Consumer ​ 388 ​ 250 ​ 175 ​ Total charge-offs ​ 820 ​ 1,247 ​ 1,097 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate ​ 67 ​ 16 ​ 14 ​ Commercial real estate ​ — ​ — ​ — ​ Single tenant net lease ​ ​ — ​ ​ — ​ ​ — ​ SBA commercial real estate ​ ​ 63 ​ ​ 3 ​ ​ 15 ​ Multi-family ​ — ​ — ​ — ​ Residential construction ​ ​ — ​ ​ — ​ ​ — ​ Commercial construction ​ ​ — ​ ​ — ​ ​ — ​ Land and land development ​ — ​ — ​ — ​ Commercial business ​ — ​ 69 ​ 119 ​ SBA commercial business ​ 63 ​ 51 ​ 61 ​ Consumer ​ 100 ​ 36 ​ 39 ​ Total recoveries ​ 293 ​ 175 ​ 248 ​ Net charge-offs ​ 527 ​ 1,072 ​ 849 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses at end of period ​ $ 21,294 ​ $ 16,900 ​ $ 15,360 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses to nonaccrual loans ​ 125.69 % 121.16 % 141.49 % Allowance for credit losses to nonperforming loans ​ 125.69 % 121.16 % 141.49 % Allowance for credit losses to total loans outstanding at the end of the period ​ 1.07 ​ 0.95 ​ 1.03 ​ Net charge-offs during the period to average loans outstanding during the period ​ 0.03 ​ 0.06 ​ 0.06 ​ ​ ​ 48 Table of Contents The following table sets forth the ratio of net charge offs (recoveries) to average loans outstanding for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended September 30, Loan category 2024 2023 2022 Residential real estate 0.02 % 0.01 % 0.00 % Commercial real estate 0.00 0.00 0.00 ​ Single tenant net lease 0.00 0.00 0.00 ​ SBA commercial real estate (0.01) 0.69 0.15 ​ Multi-family 0.00 0.00 0.00 ​ Residential construction 0.00 0.00 0.00 ​ Commercial construction 0.00 0.00 0.00 ​ Land and land development 0.00 0.00 0.00 ​ Commercial business 0.03 (0.07) (0.04) ​ SBA commercial business 0.61 2.73 1.38 ​ Consumer 0.72 0.55 0.41 ​ Total loans 0.03 % 0.06 % 0.06 % ​ Interest Rate Risk Management.
The following table sets forth an analysis of the allowance for credit losses for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, (Dollars in thousands) 2025 2024 2023 ​ Allowance for credit losses at beginning of period ​ $ 21,294 ​ $ 16,900 ​ $ 15,360 ​ ASU 2016 - 13 (CECL) implementation ​ ​ — ​ ​ 1,429 ​ ​ — ​ Provision (credit) for credit losses ​ (118) ​ 3,492 ​ 2,612 ​ Charge offs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate ​ 191 ​ 168 ​ 71 ​ Commercial real estate ​ 6 ​ — ​ — ​ Single tenant net lease ​ ​ — ​ ​ — ​ ​ — ​ SBA commercial real estate ​ ​ 285 ​ ​ 58 ​ ​ 357 ​ Multi-family ​ — ​ — ​ — ​ Residential construction ​ — ​ — ​ — ​ Commercial construction ​ ​ — ​ ​ — ​ ​ — ​ Land and land development ​ — ​ — ​ — ​ Commercial business ​ — ​ 34 ​ — ​ SBA commercial business ​ ​ 582 ​ ​ 172 ​ ​ 569 ​ Consumer ​ 383 ​ 388 ​ 250 ​ Total charge-offs ​ 1,447 ​ 820 ​ 1,247 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Recoveries: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Residential real estate ​ 53 ​ 67 ​ 16 ​ Commercial real estate ​ — ​ — ​ — ​ Single tenant net lease ​ ​ — ​ ​ — ​ ​ — ​ SBA commercial real estate ​ ​ 344 ​ ​ 63 ​ ​ 3 ​ Multi-family ​ — ​ — ​ — ​ Residential construction ​ ​ — ​ ​ — ​ ​ — ​ Commercial construction ​ ​ — ​ ​ — ​ ​ — ​ Land and land development ​ — ​ — ​ — ​ Commercial business ​ — ​ — ​ 69 ​ SBA commercial business ​ 69 ​ 63 ​ 51 ​ Consumer ​ 94 ​ 100 ​ 36 ​ Total recoveries ​ 560 ​ 293 ​ 175 ​ Net charge-offs ​ 887 ​ 527 ​ 1,072 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses at end of period ​ $ 20,289 ​ $ 21,294 ​ $ 16,900 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Allowance for credit losses to nonaccrual loans ​ 138.73 % 125.69 % 121.16 % Allowance for credit losses to nonperforming loans ​ 138.73 % 125.69 % 121.16 % Allowance for credit losses to total loans outstanding at the end of the period ​ 1.06 ​ 1.07 ​ 0.95 ​ Net charge-offs during the period to average loans outstanding during the period ​ 0.04 ​ 0.03 ​ 0.06 ​ ​ ​ 45 Table of Contents The following table sets forth the ratio of net charge offs (recoveries) to average loans outstanding for the periods indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Year Ended September 30, Loan category 2025 2024 2023 Residential real estate 0.02 % 0.02 % 0.01 % Commercial real estate — — — ​ Single tenant net lease — — — ​ SBA commercial real estate (0.10) (0.01) 0.69 ​ Multi-family — — — ​ Residential construction — — — ​ Commercial construction — — — ​ Land and land development — — — ​ Commercial business — 0.03 (0.07) ​ SBA commercial business 2.87 0.61 2.73 ​ Consumer 0.71 0.72 0.55 ​ Total loans 0.04 % 0.03 % 0.06 % ​ Interest Rate Risk Management.
At September 30, 2024 and 2023, cash and cash equivalents totaled $52.1 million and $30.8 million, respectively. The Bank is at times required to maintain reserve balances on hand and with the Federal Reserve Bank, which are unavailable for investment but are interest-bearing. Loans Held for Sale.
At September 30, 2025 and 2024, cash and cash equivalents totaled $31.9 million and $52.1 million, respectively. The Bank is at times required to maintain reserve balances on hand and with the Federal Reserve Bank, which are unavailable for investment but are interest-bearing. Loans Held for Sale. Residential mortgage loans held for sale increased by $551,000 in 2025.
At September 30, 2024, the Bank did not have any outstanding federal funds purchased under these lines of credit. Stockholders’ Equity . Stockholders’ equity increased $26.1 million, from $151.0 million at September 30, 2023 to $177.1 million at September 30, 2024.
At September 30, 2025, the Bank did not have any outstanding federal funds purchased under these lines of credit. Stockholders’ Equity . Stockholders’ equity increased $16.4 million, from $177.1 million at September 30, 2024 to $193.5 million at September 30, 2025.
The increase in commercial real estate loans is primarily due to an increase in in-market commercial real estate loans, which increased $17.6 million during the year ended September 30, 2024. Multi-family real estate loans totaled $37.8 million, or 1.9% of total loans at September 30, 2024, compared to $34.9 million, or 2.0% of total loans at September 30, 2023.
The increase in commercial real estate loans is primarily due to an increase in single tenant net lease loans, which increased $14.8 million during the year ended September 30, 2025. Multi-family real estate loans totaled $38.9 million, or 2.0% of total loans at September 30, 2025, compared to $37.8 million, or 1.9% of total loans at September 30, 2024.
The increase in the average balance of interest-earning assets is due primarily to increases in the average balance of total loans of $245.8 million. For the year ended September 30, 2023, total interest income increased $32.0 million, or 45.0% as compared to 2022.
The increase in the average balance of interest-earning assets is due primarily to increases in the average balance of total loans of $55.9 million. For the year ended September 30, 2024, total interest income increased $18.8 million, or 18.2% as compared to 2023.
The following table sets forth certain information regarding the Bank’s use of FHLB borrowings. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, (Dollars in thousands) 2024 2023 2022 Maximum amount of FHLB borrowings outstanding at any month-end during period $ 489,168 $ 486,886 $ 404,098 ​ Average FHLB borrowings outstanding during period ​ 376,246 ​ 368,239 ​ 292,803 ​ Weighted average interest rate during period ​ 3.35 % ​ 2.92 % ​ 1.14 % Balance outstanding at end of period $ 301,640 $ 363,183 $ 307,303 ​ Weighted average interest rate at end of period ​ 3.20 % ​ 2.90 % ​ 2.05 % ​ Other borrowings were comprised of subordinated debt at September 30, 2024 and 2023.
The following table sets forth certain information regarding the Bank’s use of FHLB borrowings. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, (Dollars in thousands) 2025 2024 2023 Maximum amount of FHLB borrowings outstanding at any month-end during period $ 464,971 $ 489,168 $ 486,886 ​ Average FHLB borrowings outstanding during period ​ 366,843 ​ 376,246 ​ 368,239 ​ Weighted average interest rate during period ​ 3.56 % ​ 3.35 % ​ 2.92 % Balance outstanding at end of period $ 435,000 $ 301,640 $ 363,183 ​ Weighted average interest rate at end of period ​ 3.70 % ​ 3.20 % ​ 2.90 % ​ 37 Table of Contents Other borrowings were comprised of subordinated debt at September 30, 2025 and 2024.
SBA loans held for sale increased by $4.6 million in 2024, from $21.2 million at September 30, 2023 to $25.7 million at September 30, 2024 due to originations outpacing sales during the year. Loans. Our primary lending activity is the origination of loans secured by real estate.
SBA loans held for sale decreased by $10.9 million in 2025, from $25.7 million at September 30, 2024 to $14.8 million at September 30, 2025 due to sales outpacing originations during the year. Loans. Our primary lending activity is the origination of loans secured by real estate.
At September 30, 2024, we had the ability to borrow a total of approximately $800.0 million from the FHLB, of which $301.6 million was borrowed and outstanding.
At September 30, 2025, we had the ability to borrow a total of approximately $884.9 million from the FHLB, of which $435.0 million was borrowed and outstanding.
At September 30, 2024, the Bank had $325.8 million in commitments to extend credit outstanding. Time deposits due within one year of September 30, 2024 totaled $780.6 million, or 96.0% of time deposits.
At September 30, 2025, the Bank had $362.6 million in commitments to extend credit outstanding. Time deposits due within one year of September 30, 2025 totaled $452.6 million, or 91.8% of time deposits.
Average other borrowings, which is comprised of subordinated debt, decreased $10.6 million or 17.9% from $59.2 million for 2023 to $48.5 million for 2024. The average cost of other borrowings increased from 5.48% for 2023, net of amortization of debt issuance costs, to 6.63% for 2024, net of amortization of debt issuance costs.
Average other borrowings, which is comprised of subordinated debt, decreased $8.3 million or 17.1% from $48.5 million for 2024 to $40.2 million for 2025. The average cost of other borrowings decreased from 6.63% for 2024, net of amortization of debt issuance costs, to 5.92% for 2025, net of amortization of debt issuance costs.
The average cost of other borrowings decreased from 5.61% for 2022, net of amortization of debt issuance costs, to 5.48% for 2023, net of amortization of debt issuance costs. 42 Table of Contents Average Balances and Yields.
The average cost of other borrowings increased from 5.48% for 2023, net of amortization of debt issuance costs, to 6.63% for 2024, net of amortization of debt issuance costs. 39 Table of Contents Average Balances and Yields.
For the year ended September 30, 2024, net interest income decreased $3.5 million, or 5.7%, as compared to 2023.
For the year ended September 30, 2025, net interest income increased $7.2 million, or 12.5%, as compared to 2024.
Furthermore, rate increases of 2.00% and 3.00% would cause net interest income to decrease by 6.62% and 10.11%, respectively. An immediate and sustained decrease in rates of 1.00% and 2.00% would increase our net interest income by $3.2 million and $6.3 million, or 4.75% and 9.38%, respectively, 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 8.70% and 12.40%, respectively. An immediate and sustained decrease in rates of 1.00% and 2.00% would increase our net interest income by $3.8 million and $7.7 million, or 5.23% and 10.56%, respectively, over a one year horizon compared to a flat interest rate scenario.
The following table sets forth the breakdown of the allowance for credit losses by loan category at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, ​ ​ 2024 2023 ​ ​ ​ ​ ​ ​ ​ ​ % of ​ ​ ​ ​ ​ ​ % of ​ ​ ​ ​ ​ % of Loans in ​ ​ ​ % of Loans in ​ ​ ​ ​ ​ Allowance Category ​ ​ ​ Allowance Category ​ ​ ​ ​ ​ to Total to Total ​ ​ ​ to Total to Total ​ (Dollars in thousands) Amount Allowance Loans Amount Allowance Loans ​ Residential real estate ​ $ 7,485 35.15 % 33.77 % $ 4,641 27.46 % 29.59 % Commercial real estate ​ 1,744 8.19 10.32 ​ 1,777 10.51 10.48 ​ Single tenant net lease ​ ​ 4,038 ​ 18.96 ​ 37.83 ​ ​ 3,810 ​ 22.54 ​ 42.40 ​ SBA commercial real estate ​ ​ 3,100 ​ 14.56 ​ 2.80 ​ ​ 1,922 ​ 11.37 ​ 2.64 ​ Multi-family ​ 341 1.60 1.90 ​ 268 1.59 1.95 ​ Residential construction ​ 405 1.90 2.68 ​ 434 2.57 1.40 ​ Commercial construction ​ ​ 165 ​ 0.77 ​ 0.46 ​ ​ 282 ​ 1.67 ​ 0.82 ​ Land and land development ​ 204 0.96 0.89 ​ 307 1.82 0.96 ​ Commercial business ​ 1,657 7.78 6.28 ​ 1,714 10.14 6.58 ​ SBA commercial business ​ ​ 1,550 ​ 7.28 ​ 0.92 ​ ​ 1,247 ​ 7.38 ​ 0.95 ​ Consumer ​ 605 2.85 2.13 ​ 498 2.95 2.23 ​ Total allowance for credit losses ​ $ 21,294 100.00 % 100.00 % $ 16,900 100.00 % 100.00 % ​ Although we believe that we use the best information available to establish the allowance for credit losses, future adjustments to the allowance for credit losses may be necessary and our results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
The following table sets forth the breakdown of the allowance for credit losses by loan category at the dates indicated. 43 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, ​ ​ 2025 2024 ​ ​ ​ ​ ​ ​ ​ ​ % of ​ ​ ​ ​ ​ ​ % of ​ ​ ​ ​ ​ % of Loans in ​ ​ ​ % of Loans in ​ ​ ​ ​ ​ Allowance Category ​ ​ ​ Allowance Category ​ ​ ​ ​ ​ to Total to Total ​ ​ ​ to Total to Total ​ (Dollars in thousands) Amount Allowance Loans Amount Allowance Loans ​ Residential real estate ​ $ 7,003 34.52 % 31.79 % $ 7,485 35.15 % 33.77 % Commercial real estate ​ 1,717 8.46 10.17 ​ 1,744 8.19 10.32 ​ Single tenant net lease ​ ​ 3,344 ​ 16.48 ​ 40.16 ​ ​ 4,038 ​ 18.96 ​ 37.83 ​ SBA commercial real estate ​ ​ 3,877 ​ 19.11 ​ 3.44 ​ ​ 3,100 ​ 14.56 ​ 2.80 ​ Multi-family ​ 266 1.31 2.04 ​ 341 1.60 1.90 ​ Residential construction ​ 213 1.05 1.33 ​ 405 1.90 2.68 ​ Commercial construction ​ ​ 288 ​ 1.42 ​ 0.77 ​ ​ 165 ​ 0.77 ​ 0.46 ​ Land and land development ​ 189 0.93 0.85 ​ 204 0.96 0.89 ​ Commercial business ​ 1,268 6.25 6.48 ​ 1,657 7.78 6.28 ​ SBA commercial business ​ ​ 1,549 ​ 7.63 ​ 0.89 ​ ​ 1,550 ​ 7.28 ​ 0.92 ​ Consumer ​ 575 2.84 2.08 ​ 605 2.85 2.13 ​ Total allowance for credit losses ​ $ 20,289 100.00 % 100.00 % $ 21,294 100.00 % 100.00 % ​ Although we believe that we use the best information available to establish the allowance for credit losses, future adjustments to the allowance for credit losses may be necessary and our results of operations could be adversely affected if circumstances differ substantially from the assumptions used in making the determinations.
The following table sets forth the amortized costs and fair values of our investment securities at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, ​ ​ 2024 ​ 2023 ​ 2022 ​ Amortized Fair Amortized Fair Amortized Fair (In thousands) ​ Cost ​ Value ​ Cost ​ Value ​ Cost ​ Value Securities available for sale: ​ ​ ​ ​ ​ ​ US Treasury notes and bills ​ $ 30,031 ​ $ 27,411 ​ $ 30,598 ​ $ 25,949 ​ $ 30,809 ​ $ 27,295 Agency mortgage-backed ​ ​ 28,425 ​ ​ 26,276 ​ ​ 28,542 ​ ​ 24,268 ​ ​ 30,786 ​ ​ 27,500 Agency CMO ​ 15,700 ​ 14,926 ​ 14,064 ​ 12,742 ​ 15,562 ​ 14,821 Privately-issued CMO ​ 295 ​ 260 ​ 424 ​ 396 ​ 495 ​ 470 Privately-issued asset-backed ​ 301 ​ 313 ​ 433 ​ 443 ​ 561 ​ 569 SBA certificates ​ 11,993 ​ 11,926 ​ 11,587 ​ 10,745 ​ 12,255 ​ 12,012 Municipal ​ 174,132 ​ 165,687 ​ 177,561 ​ 151,484 ​ 260,326 ​ 233,850 Other ​ ​ 2,000 ​ ​ 1,880 ​ ​ 2,000 ​ ​ 1,712 ​ ​ — ​ ​ — Total ​ $ 262,877 ​ $ 248,679 ​ $ 265,209 ​ $ 227,739 ​ $ 350,794 ​ $ 316,517 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed ​ $ 29 ​ $ 29 ​ $ 36 ​ $ 35 ​ $ 45 ​ $ 45 Municipal ​ 1,011 ​ 1,023 ​ 1,264 ​ 1,268 ​ 1,513 ​ 1,548 Total ​ $ 1,040 ​ $ 1,052 ​ $ 1,300 ​ $ 1,303 ​ $ 1,558 ​ $ 1,593 ​ 38 Table of Contents The following table sets forth the stated maturities and weighted average yields of debt securities at September 30, 2024.
The following table sets forth the amortized costs and fair values of our investment securities at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, ​ ​ 2025 ​ 2024 ​ 2023 ​ Amortized Fair Amortized Fair Amortized Fair (In thousands) ​ Cost ​ Value ​ Cost ​ Value ​ Cost ​ Value Securities available for sale: ​ ​ ​ ​ ​ ​ US Treasury notes and bills ​ $ 29,199 ​ $ 26,620 ​ $ 30,031 ​ $ 27,411 ​ $ 30,598 ​ $ 25,949 Agency mortgage-backed ​ ​ 25,853 ​ ​ 23,463 ​ ​ 28,425 ​ ​ 26,276 ​ ​ 28,542 ​ ​ 24,268 Agency CMO ​ 27,973 ​ 27,345 ​ 15,700 ​ 14,926 ​ 14,064 ​ 12,742 Privately-issued CMO ​ 200 ​ 191 ​ 295 ​ 260 ​ 424 ​ 396 Privately-issued asset-backed ​ 214 ​ 220 ​ 301 ​ 313 ​ 433 ​ 443 SBA certificates ​ 10,643 ​ 10,541 ​ 11,993 ​ 11,926 ​ 11,587 ​ 10,745 Municipal ​ 174,878 ​ 161,662 ​ 174,132 ​ 165,687 ​ 177,561 ​ 151,484 Other ​ ​ 2,000 ​ ​ 1,800 ​ ​ 2,000 ​ ​ 1,880 ​ ​ 2,000 ​ ​ 1,712 Total ​ $ 270,960 ​ $ 251,842 ​ $ 262,877 ​ $ 248,679 ​ $ 265,209 ​ $ 227,739 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Securities held to maturity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Agency mortgage-backed ​ $ 24 ​ $ 24 ​ $ 29 ​ $ 29 ​ $ 36 ​ $ 35 Municipal ​ 754 ​ 755 ​ 1,011 ​ 1,023 ​ 1,264 ​ 1,268 Total ​ $ 778 ​ $ 779 ​ $ 1,040 ​ $ 1,052 ​ $ 1,300 ​ $ 1,303 ​ The following table sets forth the stated maturities and weighted average yields of debt securities at September 30, 2025.
The simulated changes presented in the following table are not within policy guidelines approved by the Company’s Board of Directors due to the strategic decision to attempt to enhance the Company’s profile in the declining rate scenarios. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2024 ​ Immediate Change Economic Value of Equity ​ Economic Value of Equity as a ​ in the Level Dollar Dollar Percent Percent of Present Value of Assets ​ of Interest Rates Amount Change Change EVE Ratio Change ​ ​ (Dollars in thousands) ​ 300bp ​ $ 171,051 ​ $ (99,851) (36.86) % 8.05 % (345) bp 200bp ​ 202,962 ​ (67,940) (25.08) 9.24 (226) bp 100bp ​ 236,935 ​ (33,967) (12.54) 10.42 (108) bp Static ​ 270,902 ​ — — 11.50 — bp (100)bp ​ 309,128 ​ 38,226 14.11 12.66 116 bp (200)bp ​ 349,855 ​ 78,953 29.14 13.80 230 bp ​ 50 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2023 ​ Immediate Change Economic Value of Equity Economic Value of Equity as a ​ in the Level Dollar Dollar Percent Percent of Present Value of Assets ​ of Interest Rates Amount Change Change EVE Ratio Change ​ ​ (Dollars in thousands) 300bp ​ $ 168,287 ​ $ (103,095) (37.99) % 8.80 % (386) bp 200bp ​ 200,335 ​ (71,047) (26.18) 10.10 (256) bp 100bp ​ 234,422 ​ (36,960) (13.62) 11.38 (128) bp Static ​ 271,382 ​ — — 12.66 — bp (100)bp ​ 309,457 ​ 38,075 14.03 13.87 121 bp (200)bp ​ 348,979 ​ 77,597 28.59 15.00 234 bp ​ The previous table indicates that at September 30, 2024, the Company would expect a decrease in its EVE in the event of a sudden and sustained 100, 200 and 300 basis point increase in prevailing interest rates, and an increase in its EVE in the event of a sudden and sustained 100 and 200 basis point decrease in prevailing interest rates.
The simulated changes presented in the following table are not within policy guidelines approved by the Company’s Board of Directors due to the strategic decision to attempt to enhance the Company’s profile in the declining rate scenarios. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2025 ​ Immediate Change Economic Value of Equity ​ Economic Value of Equity as a ​ in the Level Dollar Dollar Percent Percent of Present Value of Assets ​ of Interest Rates Amount Change Change EVE Ratio Change ​ ​ (Dollars in thousands) ​ 300bp ​ $ 216,383 ​ $ (92,499) (29.95) % 10.37 % (301) bp 200bp ​ 242,807 ​ (66,075) (21.39) 11.27 (211) bp 100bp ​ 272,848 ​ (36,034) (11.67) 12.23 (115) bp Static ​ 308,882 ​ — — 13.38 — bp (100)bp ​ 345,964 ​ 37,082 12.01 14.46 108 bp (200)bp ​ 386,420 ​ 77,538 25.10 15.55 217 bp ​ 47 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, 2024 ​ Immediate Change Economic Value of Equity Economic Value of Equity as a ​ in the Level Dollar Dollar Percent Percent of Present Value of Assets ​ of Interest Rates Amount Change Change EVE Ratio Change ​ ​ (Dollars in thousands) 300bp ​ $ 171,051 ​ $ (99,851) (36.86) % 8.05 % (345) bp 200bp ​ 202,962 ​ (67,940) (25.08) 9.24 (226) bp 100bp ​ 236,935 ​ (33,967) (12.54) 10.42 (108) bp Static ​ 270,902 ​ — — 11.50 — bp (100)bp ​ 309,128 ​ 38,226 14.11 12.66 116 bp (200)bp ​ 349,855 ​ 78,953 29.14 13.80 230 bp ​ The previous table indicates that at September 30, 2025, the Company would expect a decrease in its EVE in the event of a sudden and sustained 100, 200 and 300 basis point increase in prevailing interest rates, and an increase in its EVE in the event of a sudden and sustained 100 and 200 basis point decrease in prevailing interest rates.
The Bank recognized increases in money market deposit accounts of $69.5 million and retail time deposits of $132.7 million, when comparing the two years. Brokered certificates of deposit totaled $509.2 million at September 30, 2024 compared to $438.3 million at September 30, 2023. There were no reciprocal time deposits at September 30, 2024 and 2023.
The Bank recognized increases in money market deposit accounts of $138.5 million and interest-bearing checking accounts of $19.9 million, when comparing the two years. Brokered certificates of deposit totaled $219.9 million at September 30, 2025 compared to $509.2 million at September 30, 2024. There were no reciprocal time deposits at September 30, 2025 and 2024.
The outstanding balance of borrowings from the FHLB decreased $61.5 million, from $363.2 million at September 30, 2023 to $301.6 million at September 30, 2024. FHLB borrowings are primarily used to fund loan demand and to purchase available for sale securities.
The outstanding balance of borrowings from the FHLB increased $133.4 million, from $301.6 million at September 30, 2024 to $435.0 million at September 30, 2025. FHLB borrowings are primarily used to fund loan demand and to purchase available for sale securities.
Our strategy for managing interest rate risk emphasizes: adjusting the maturities of borrowings; adjusting the investment portfolio mix and duration and generally selling in the secondary market substantially all newly originated, fixed rate one-to four-family residential real estate loans.
Our strategy for managing interest rate risk emphasizes: adjusting the maturities of borrowings; adjusting the investment portfolio mix and duration and generally selling in the secondary market substantially all newly originated, fixed rate one-to four-family residential real estate loans. We currently do not participate in hedging programs, interest rate swaps or other activities involving the use of derivative financial instruments.
There were no out-of-period items or adjustments required to be excluded from the following table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, ​ ​ 2024 ​ 2023 ​ 2022 ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ Average ​ and ​ Yield/ ​ Average ​ and ​ Yield/ ​ Average ​ and ​ Yield/ ​ (Dollars in thousands) Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing deposits with banks ​ $ 21,951 ​ $ 1,043 4.75 % $ 22,305 ​ $ 869 3.90 % $ 30,605 ​ $ 161 0.53 % Loans ​ 1,926,228 ​ ​ 110,893 5.76 ​ 1,680,418 ​ ​ 90,014 5.36 ​ 1,362,382 ​ ​ 62,211 4.57 ​ Investment securities - taxable ​ 101,902 ​ 3,694 3.63 ​ 109,249 ​ 3,865 3.54 ​ 74,239 ​ 2,334 3.14 ​ Investment securities - nontaxable ​ 158,698 ​ 6,699 4.22 ​ 219,581 ​ 9,189 4.18 ​ 187,408 ​ 7,419 3.96 ​ FRB and FHLB stock ​ 24,982 ​ 1,563 6.26 ​ 23,196 ​ 1,435 6.19 ​ 19,217 ​ 729 3.79 ​ Total interest-earning assets ​ 2,233,761 ​ 123,892 5.55 ​ 2,054,749 ​ 105,372 5.13 ​ 1,673,851 ​ 72,854 4.35 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest-earning assets ​ 122,336 ​ ​ ​ ​ 161,446 ​ ​ ​ ​ 177,283 ​ ​ Total assets ​ $ 2,356,097 ​ ​ ​ ​ $ 2,216,195 ​ ​ ​ ​ $ 1,851,134 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOW accounts ​ $ 324,518 ​ $ 2,583 0.80 ​ $ 313,212 ​ $ 1,960 0.63 ​ $ 330,522 ​ $ 1,135 0.34 ​ Money market deposit accounts ​ 335,116 ​ 12,534 3.74 ​ 259,506 ​ 6,295 2.43 ​ 225,507 ​ 1,096 0.49 ​ Savings accounts ​ 159,902 ​ 210 0.13 ​ 188,686 ​ 124 0.07 ​ 169,731 ​ 107 0.06 ​ Time deposits ​ 698,864 ​ 32,774 4.69 ​ 521,094 ​ 19,292 3.70 ​ 264,578 ​ 2,564 0.97 ​ Total interest-bearing deposits ​ 1,518,400 ​ 48,101 3.17 ​ 1,282,498 ​ 27,671 2.16 ​ 990,338 ​ 4,902 0.49 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal funds purchased ​ — ​ — — ​ 21 ​ 1 4.76 ​ — ​ — 0.00 ​ Borrowings from FHLB ​ 376,246 ​ 12,609 3.35 ​ 368,239 ​ 10,739 2.92 ​ 292,803 ​ 3,333 1.14 ​ Subordinated debt and other borrowings ​ 48,517 ​ 3,216 6.63 ​ 59,161 ​ 3,244 5.48 ​ 41,094 ​ 2,307 5.61 ​ Total interest-bearing liabilities ​ ​ 1,943,163 ​ ​ 63,926 ​ 3.29 ​ ​ 1,709,919 ​ ​ 41,655 ​ 2.44 ​ ​ 1,324,235 ​ ​ 10,542 ​ 0.80 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest-bearing deposits ​ 204,491 ​ ​ ​ 307,356 ​ ​ ​ 313,491 ​ ​ Other non-interest-bearing liabilities ​ 44,857 ​ ​ ​ 36,867 ​ ​ ​ 35,539 ​ ​ Total liabilities ​ ​ 2,192,511 ​ ​ ​ ​ ​ ​ ​ 2,054,142 ​ ​ ​ ​ ​ ​ ​ 1,673,265 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders’ equity ​ 163,586 ​ ​ ​ 162,053 ​ ​ ​ 177,869 ​ ​ Total liabilities and equity ​ $ 2,356,097 ​ ​ ​ $ 2,216,195 ​ ​ ​ $ 1,851,134 ​ ​ Net interest income (taxable equivalent basis) ​ ​ 59,966 ​ ​ 63,717 ​ ​ 62,312 ​ Less: taxable equivalent adjustment ​ ​ ​ (1,904) ​ ​ ​ (2,143) ​ ​ ​ (1,660) ​ Net interest income ​ ​ $ 58,062 ​ ​ ​ $ 61,574 ​ ​ ​ $ 60,652 ​ ​ Interest rate spread (taxable equivalent basis) ​ ​ ​ 2.26 % ​ ​ 2.69 % ​ 3.55 % Net interest margin (taxable equivalent basis) ​ ​ ​ 2.68 ​ ​ ​ 3.10 ​ ​ 3.72 ​ Average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ ​ ​ 114.95 ​ ​ ​ ​ ​ ​ ​ 120.17 ​ ​ ​ ​ ​ ​ ​ 126.40 ​ ​ 43 Table of Contents Rate/Volume Analysis.
There were no out-of-period items or adjustments required to be excluded from the following table. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, ​ ​ 2025 ​ 2024 ​ 2023 ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ ​ Average ​ and ​ Yield/ ​ Average ​ and ​ Yield/ ​ Average ​ and ​ Yield/ ​ (Dollars in thousands) Balance Dividends Cost Balance Dividends Cost Balance Dividends Cost ​ Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing deposits with banks ​ $ 15,828 ​ $ 698 4.41 % $ 21,951 ​ $ 1,043 4.75 % $ 22,305 ​ $ 869 3.90 % Loans ​ 1,982,149 ​ ​ 116,092 5.86 ​ 1,926,228 ​ ​ 110,893 5.76 ​ 1,680,418 ​ ​ 90,014 5.36 ​ Investment securities - taxable ​ 104,151 ​ 3,782 3.63 ​ 101,902 ​ 3,694 3.63 ​ 109,249 ​ 3,865 3.54 ​ Investment securities - nontaxable ​ 161,648 ​ 6,899 4.27 ​ 158,698 ​ 6,699 4.22 ​ 219,581 ​ 9,189 4.18 ​ FRB and FHLB stock ​ 25,067 ​ 1,994 7.95 ​ 24,982 ​ 1,563 6.26 ​ 23,196 ​ 1,435 6.19 ​ Total interest-earning assets ​ 2,288,843 ​ 129,465 5.66 ​ 2,233,761 ​ 123,892 5.55 ​ 2,054,749 ​ 105,372 5.13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest-earning assets ​ 116,603 ​ ​ ​ ​ 122,336 ​ ​ ​ ​ 161,446 ​ ​ Total assets ​ $ 2,405,446 ​ ​ ​ ​ $ 2,356,097 ​ ​ ​ ​ $ 2,216,195 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Liabilities and equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ NOW accounts ​ $ 352,652 ​ $ 2,913 0.83 ​ $ 324,518 ​ $ 2,583 0.80 ​ $ 313,212 ​ $ 1,960 0.63 ​ Money market deposit accounts ​ 443,508 ​ 16,158 3.64 ​ 335,116 ​ 12,534 3.74 ​ 259,506 ​ 6,295 2.43 ​ Savings accounts ​ 149,380 ​ 199 0.13 ​ 159,902 ​ 210 0.13 ​ 188,686 ​ 124 0.07 ​ Time deposits ​ 650,857 ​ 27,510 4.23 ​ 698,864 ​ 32,774 4.69 ​ 521,094 ​ 19,292 3.70 ​ Total interest-bearing deposits ​ 1,596,397 ​ 46,780 2.93 ​ 1,518,400 ​ 48,101 3.17 ​ 1,282,498 ​ 27,671 2.16 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Federal funds purchased ​ — ​ — — ​ — ​ — — ​ 21 ​ 1 4.76 ​ Borrowings from FHLB ​ 366,843 ​ 13,058 3.56 ​ 376,246 ​ 12,609 3.35 ​ 368,239 ​ 10,739 2.92 ​ Subordinated debt and other borrowings ​ 40,238 ​ 2,381 5.92 ​ 48,517 ​ 3,216 6.63 ​ 59,161 ​ 3,244 5.48 ​ Total interest-bearing liabilities ​ ​ 2,003,478 ​ ​ 62,219 ​ 3.11 ​ ​ 1,943,163 ​ ​ 63,926 ​ 3.29 ​ ​ 1,709,919 ​ ​ 41,655 ​ 2.44 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-interest-bearing deposits ​ 186,022 ​ ​ ​ 204,491 ​ ​ ​ 307,356 ​ ​ Other non-interest-bearing liabilities ​ 34,932 ​ ​ ​ 44,857 ​ ​ ​ 36,867 ​ ​ Total liabilities ​ ​ 2,224,432 ​ ​ ​ ​ ​ ​ ​ 2,192,511 ​ ​ ​ ​ ​ ​ ​ 2,054,142 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total stockholders’ equity ​ 181,014 ​ ​ ​ 163,586 ​ ​ ​ 162,053 ​ ​ Total liabilities and equity ​ $ 2,405,446 ​ ​ ​ $ 2,356,097 ​ ​ ​ $ 2,216,195 ​ ​ Net interest income (taxable equivalent basis) ​ ​ 67,246 ​ ​ 59,966 ​ ​ 63,717 ​ Less: taxable equivalent adjustment ​ ​ ​ (1,938) ​ ​ ​ (1,904) ​ ​ ​ (2,143) ​ Net interest income ​ ​ $ 65,308 ​ ​ ​ $ 58,062 ​ ​ ​ $ 61,574 ​ ​ Interest rate spread (taxable equivalent basis) ​ ​ ​ 2.55 % ​ ​ 2.26 % ​ 2.69 % Net interest margin (taxable equivalent basis) ​ ​ ​ 2.94 ​ ​ ​ 2.68 ​ ​ 3.10 ​ Average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ ​ ​ 114.24 ​ ​ ​ ​ ​ ​ ​ 114.95 ​ ​ ​ ​ ​ ​ ​ 120.17 ​ ​ 40 Table of Contents Rate/Volume Analysis.
Commercial real estate loans, including in-market commercial real estate loans, single tenant net lease loans, and SBA real commercial real estate loans, totaled $1.01 billion, or 51.0% of total loans at September 30, 2024, compared to $991.7 million, or 55.5% of total loans at September 30, 2023.
Commercial real estate loans, including in-market commercial real estate loans, single tenant net lease loans, and SBA real commercial real estate loans, totaled $1.02 billion, or 53.8% of total loans at September 30, 2025, compared to $1.01 billion, 33 Table of Contents or 51.0% of total loans at September 30, 2024.
The banking regulators may require us to increase our allowance for credit losses based on judgments different from ours.
The banking regulators may assess our allowance for credit losses based on judgments different from ours, and we may determine to increase our allowance for credit losses based on their assessments.
The Company has implemented an enterprise risk management structure in order to better manage and mitigate these identified and perceived risks. Credit Risk Management.
Liquidity risk is the possible inability to fund obligations to depositors, lenders or borrowers. The Company has implemented an enterprise risk management structure in order to better manage and mitigate these identified and perceived risks. Credit Risk Management.
The interest rate spread, the difference between the average tax-equivalent yield on interest-earning assets and the average cost of interest-bearing liabilities, decreased from 2.69% for 2023 to 2.26% for 2024 due primarily to an increase in the average cost of interest-bearing liabilities from 2.44% for 2023 to 3.29% for 2024.
The interest rate spread, the difference between the average tax-equivalent yield on interest-earning assets and the average cost of interest-bearing liabilities, increased from 2.26% for 2024 to 2.55% for 2025 due primarily to an increase in the average yield of 38 Table of Contents interest earning assets from 5.55% for 2024 to 5.66% for 2025 and a decrease in the average cost of interest-bearing liabilities from 3.29% for 2024 to 3.11% for 2025.
The increase in residential mortgage loans is primarily due a $125.1 million increase in first-lien home equity line of credit loans. The Company launched a national first-lien home equity line of credit product in fiscal 2021, the balance of which was $433.0 million and $307.9 million at September 30, 2024 and 2023, respectively.
The Company launched a national first-lien home equity line of credit product in fiscal 2021, the balance of which was $351.0 million and $433.0 million at September 30, 2025 and 2024, respectively.
If we classify an asset as loss, we charge off an amount equal to 100% of the portion of the asset classified loss. 46 Table of Contents Classified assets include loans that are classified due to factors other than payment delinquencies, such as lack of current financial statements and other required documentation, insufficient cash flows or other deficiencies, and, therefore, are not included as nonperforming assets.
Classified assets include loans that are classified due to factors other than payment delinquencies, such as lack of current financial statements and other required documentation, insufficient cash flows or other deficiencies, and, therefore, are not included as nonperforming assets.
The increase in total interest income is due primarily to increases in the average balance of interest earning assets of $380.9 million, from $1.67 billion for 2022 to $2.05 billion for 2023, and an increase in the average tax-equivalent yield on interest-earning assets, from 4.35% for 2022 to 5.13% for 2023.
The increase in total interest income is due primarily to increases in the average balance of interest earning assets of $55.1 million, from $2.23 billion for 2024 to $2.29 billion for 2025, and an increase in the average tax-equivalent yield on interest-earning assets, from 5.55% for 2024 to 5.66% for 2025.
Mortgage loans originated for sale were $587.7 million in the year ended September 30, 2023 as compared to $1.61 billion for 2022. 44 Table of Contents Noninterest Expense. Noninterest expenses decreased $23.2 million, or 30.5%, from $76.1 million for the year ended September 30, 2023 to $52.9 million for the year ended September 30, 2024.
Mortgage loans originated for sale were $60.8 million in the year ended September 30, 2024 as compared to $587.7 million for 2023. 41 Table of Contents Noninterest Expense. Noninterest expenses increased $4.1 million, or 7.7%, from $52.9 million for the year ended September 30, 2024 to $57.0 million for the year ended September 30, 2025.
Other borrowings increased from $48.4 million at September 30, 2023 to $48.6 million at September 30, 2024 primarily due to amortization of the subordinated debt issuance costs. On September 20, 2018, the Company entered into a subordinated note purchase agreement in the principal amount of $20 million.
Other borrowings decreased by $19.8 million from $48.6 million at September 30, 2024 to $28.8 million at September 30, 2025 primarily due to the repayment of a $20.0 million subordinated note during 2025. On September 20, 2018, the Company entered into a subordinated note purchase agreement in the principal amount of $20 million.
Available for sale securities increased by $20.9 million, from $227.7 million at September 30, 2023 to $248.7 million at September 30, 2024, due primarily to a decrease in unrealized losses of $23.3 million and purchases of $7.0 million, partially offset by maturities and calls of $5.0 million and principal repayments of $4.1 million. Securities Held to Maturity.
Available for sale securities increased by $3.2 million, from $248.7 million at September 30, 2024 to $251.8 million at September 30, 2025, due primarily to purchases of $19.0 million, partially offset by an increase in net unrealized losses of $4.9 million, maturities and calls of $4.4 million and principal repayments of $6.2 million. 35 Table of Contents Securities Held to Maturity.
We originate one to four family mortgage loans, multifamily loans, commercial real estate loans, commercial business loans and construction loans. To a lesser extent, we originate various consumer loans including home equity lines of credit.
We originate one to four family mortgage loans, multifamily loans, commercial real estate loans, commercial business loans and construction loans. To a lesser extent, we originate various consumer loans including home equity lines of credit. Net loans decreased $77.0 million, from $1.96 billion at September 30, 2024 to $1.89 billion at September 30, 2025.
Changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, 2024 ​ Year Ended September 30, 2023 ​ ​ Compared to Compared to ​ ​ Year Ended September 30, 2023 Year Ended September 30, 2022 ​ ​ Increase (Decrease) Increase (Decrease) ​ ​ Due to Due to (In thousands) Volume Rate Net Volume Rate Net Interest income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing deposits with banks $ (15) ​ $ 189 ​ $ 174 ​ $ (184) ​ $ 892 ​ $ 708 Loans ​ 13,667 ​ 7,212 ​ 20,879 ​ 15,790 ​ 11,986 ​ 27,803 Investment securities - taxable (263) ​ 92 ​ (171) ​ 1,169 ​ 362 ​ 1,531 Investment securities - nontaxable (2,557) ​ 67 ​ (2,490) ​ 1,309 ​ 461 ​ 1,770 FRB and FHLB stock 111 ​ 17 ​ 128 ​ 199 ​ 507 ​ 706 Total interest-earning assets 10,942 ​ 7,577 ​ 18,520 ​ 18,283 ​ 14,208 ​ 32,518 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense: ​ ​ ​ ​ ​ ​ Deposits 6,287 ​ 14,143 ​ 20,430 ​ 3,871 ​ 18,898 ​ 22,769 Federal funds purchased ​ ​ (1) ​ ​ — ​ ​ (1) ​ ​ 1 ​ ​ — ​ ​ 1 Borrowings from FHLB ​ 251 ​ ​ 1,619 ​ ​ 1,870 ​ ​ 1,531 ​ ​ 5,875 ​ ​ 7,406 Other borrowings ​ (644) ​ 616 ​ (28) ​ 1,002 ​ (62) ​ 937 Total interest-bearing liabilities ​ 5,893 ​ ​ 16,378 ​ ​ 22,271 ​ ​ 6,405 ​ ​ 24,711 ​ ​ 31,113 Net increase (decrease) in net interest income (taxable equivalent basis) ​ $ 5,050 ​ $ (8,802) ​ $ (3,751) ​ $ 11,878 ​ $ (10,503) ​ $ 1,405 ​ Provision for Credit Losses.
Changes attributable to changes in both rate and volume have been allocated proportionally based on the absolute dollar amounts of change in each. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended September 30, 2025 ​ Year Ended September 30, 2024 ​ ​ Compared to Compared to ​ ​ Year Ended September 30, 2024 Year Ended September 30, 2023 ​ ​ Increase (Decrease) Increase (Decrease) ​ ​ Due to Due to (In thousands) Volume Rate Net Volume Rate Net Interest income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest-bearing deposits with banks $ (280) ​ $ (63) ​ $ (345) ​ $ (15) ​ $ 189 ​ $ 174 Loans ​ 3,249 ​ 1,950 ​ 5,199 ​ 13,667 ​ 7,212 ​ 20,879 Investment securities - taxable 82 ​ 6 ​ 88 ​ (263) ​ 92 ​ (171) Investment securities - nontaxable 125 ​ 75 ​ 200 ​ (2,557) ​ 67 ​ (2,490) FRB and FHLB stock — ​ 431 ​ 431 ​ 111 ​ 17 ​ 128 Total interest-earning assets 3,176 ​ 2,397 ​ 5,573 ​ 10,942 ​ 7,577 ​ 18,520 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest expense: ​ ​ ​ ​ ​ ​ Deposits 2,379 ​ (3,700) ​ (1,321) ​ 6,287 ​ 14,143 ​ 20,430 Federal funds purchased ​ ​ — ​ ​ — ​ ​ — ​ ​ (1) ​ ​ — ​ ​ (1) Borrowings from FHLB ​ (325) ​ ​ 774 ​ ​ 449 ​ ​ 251 ​ ​ 1,619 ​ ​ 1,870 Other borrowings ​ (519) ​ (316) ​ (835) ​ (644) ​ 616 ​ (28) Total interest-bearing liabilities ​ 1,535 ​ ​ (3,242) ​ ​ (1,707) ​ ​ 5,893 ​ ​ 16,378 ​ ​ 22,271 Net increase (decrease) in net interest income (taxable equivalent basis) ​ $ 1,641 ​ $ 5,639 ​ $ 7,280 ​ $ 5,050 ​ $ (8,802) ​ $ (3,751) ​ Provision for Credit Losses.
Consumer loans totaled $42.2 million, or 2.1% of total loans, at September 30, 2024 compared to $39.9 million, or 2.2% of total loans, at September 30, 2023. 36 Table of Contents The following table sets forth the composition of our loan portfolio at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, ​ ​ ​ 2024 ​ 2023 ​ (Dollars in thousands) Amount Percent Amount Percent Real estate mortgage: ​ ​ Residential ​ $ 670,011 ​ 33.77 % $ 528,410 ​ 29.58 % Commercial ​ 204,847 ​ 10.32 ​ 187,232 ​ 10.48 ​ Single tenant net lease ​ ​ 750,642 ​ 37.83 ​ ​ 757,388 ​ 42.40 ​ SBA commercial real estate ​ ​ 55,557 ​ 2.80 ​ ​ 47,078 ​ 2.64 ​ Multi-family ​ 37,763 ​ 1.90 ​ 34,892 ​ 1.95 ​ Residential construction ​ 53,237 ​ 2.68 ​ 24,924 ​ 1.40 ​ Commercial construction ​ 9,172 ​ 0.46 ​ 14,588 ​ 0.82 ​ Land and land development ​ 17,678 ​ 0.89 ​ 17,234 ​ 0.96 ​ ​ ​ 1,798,907 ​ 90.67 ​ 1,611,746 ​ 90.23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial business ​ 124,639 ​ 6.28 ​ 117,594 ​ 6.58 ​ SBA commercial business ​ 18,342 ​ 0.92 ​ 16,939 ​ 0.95 ​ Consumer ​ 42,213 ​ 2.13 ​ 39,915 ​ 2.23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ 1,984,101 100.00 % 1,786,194 100.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred loan origination fees and costs, net ​ 1,045 ​ 949 ​ Allowance for credit losses ​ (21,294) ​ (16,900) ​ Loans, net ​ $ 1,963,852 ​ $ 1,770,243 ​ ​ Loan Maturity The following table sets forth certain information at September 30, 2024 regarding the dollar amount of loan principal repayments becoming due during the period indicated.
The following table sets forth the composition of our loan portfolio at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, ​ ​ ​ 2025 ​ 2024 ​ (Dollars in thousands) Amount Percent Amount Percent Real estate mortgage: ​ ​ Residential ​ $ 605,928 ​ 31.79 % $ 670,011 ​ 33.77 % Commercial ​ 193,863 ​ 10.17 ​ 204,847 ​ 10.32 ​ Single tenant net lease ​ ​ 765,430 ​ 40.16 ​ ​ 750,642 ​ 37.83 ​ SBA commercial real estate ​ ​ 65,528 ​ 3.44 ​ ​ 55,557 ​ 2.80 ​ Multi-family ​ 38,855 ​ 2.04 ​ 37,763 ​ 1.90 ​ Residential construction ​ 25,290 ​ 1.33 ​ 53,237 ​ 2.68 ​ Commercial construction ​ 14,588 ​ 0.77 ​ 9,172 ​ 0.46 ​ Land and land development ​ 16,116 ​ 0.85 ​ 17,678 ​ 0.89 ​ ​ ​ 1,725,598 ​ 90.53 ​ 1,798,907 ​ 90.67 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Commercial business ​ 123,469 ​ 6.48 ​ 124,639 ​ 6.28 ​ SBA commercial business ​ 17,049 ​ 0.89 ​ 18,342 ​ 0.92 ​ Consumer ​ 40,013 ​ 2.10 ​ 42,213 ​ 2.13 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total loans ​ 1,906,129 100.00 % 1,984,101 100.00 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deferred loan origination fees and costs, net ​ 978 ​ 1,045 ​ Allowance for credit losses – loans ​ (20,289) ​ (21,294) ​ Loans, net ​ $ 1,886,818 ​ $ 1,963,852 ​ ​ 34 Table of Contents Loan Maturity The following table sets forth certain information at September 30, 2025 regarding the dollar amount of loan principal repayments becoming due during the period indicated.
The increase in the average balance of interest-earning assets is due primarily to increases in the average balance of total loans and investment securities of $318.0 million and $67.2 million, respectively.
The increase in the average balance of interest-earning assets is due primarily to increases in the average balance of total loans of $245.8 million.
In 2023, interest income on investment securities increased $2.9 million, or 35.7%, primarily due to an increase in the average balance of investment securities of $67.2 million, from $261.6 million for 2022 to $328.8 million for 2023 and an increase in the average tax equivalent yield on investments from 3.73% for 2022 to 3.97% for 2023.
Interest income on investment securities increased $246,000, or 2.7%, primarily due to an increase in the average balance of investment securities of $5.2 million, from $260.6 million for 2024 to $265.8 million for 2025 and an increase in the average tax equivalent yield on investments from 3.99% for 2024 to 4.02% for 2025.
The following table sets forth the balances of our deposit accounts at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, (In thousands) 2024 2023 Non-interest-bearing demand deposits ​ $ 191,528 ​ $ 242,237 NOW accounts ​ 332,388 ​ 336,446 Money market accounts ​ 393,214 ​ 323,739 Savings accounts ​ 150,913 ​ 170,073 Retail time deposits ​ 303,681 ​ 170,980 Brokered & reciprocal time deposits ​ 509,157 ​ 438,319 Total ​ $ 1,880,881 ​ $ 1,681,794 ​ 39 Table of Contents The following table indicates the amount of time deposits, by account, that are in excess of the FDIC insurance limit (currently $250,000) by time remaining until maturity as of September 30, 2024. ​ ​ ​ ​ ​ (In thousands) Amount Three months or less ​ $ 42,144 Over three through six months ​ 58,075 Over six through twelve months ​ 21,364 Over twelve months ​ 11,607 Total ​ $ 133,190 ​ Our uninsured deposits, which consist solely of the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $565.7 million and $463.5 million at September 30, 2024 and 2023, respectively.
The following table sets forth the balances of our deposit accounts at the dates indicated. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ At September 30, (In thousands) 2025 2024 Non-interest-bearing demand deposits ​ $ 187,564 ​ $ 191,528 NOW accounts ​ 352,270 ​ 332,388 Money market accounts ​ 531,722 ​ 393,214 Savings accounts ​ 145,146 ​ 150,913 Retail time deposits ​ 273,240 ​ 303,681 Brokered & reciprocal time deposits ​ 219,940 ​ 509,157 Total ​ $ 1,709,882 ​ $ 1,880,881 ​ The following table indicates the amount of time deposits, by account, that are in excess of the FDIC insurance limit (currently $250,000) by time remaining until maturity as of September 30, 2025. ​ ​ ​ ​ ​ (In thousands) Amount Three months or less ​ $ 37,939 Over three through six months ​ 26,443 Over six through twelve months ​ 16,595 Over twelve months ​ 13,426 Total ​ $ 94,403 ​ Our uninsured deposits, which consist solely of the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000) per insured account, were approximately $717.1 million and $565.7 million at September 30, 2025 and 2024, respectively.
The decrease was due primarily to decreases in compensation and benefits, data processing expense and other operating expenses of $12.0 million, $2.2 million and $7.8 million, respectively.
In 2024, noninterest expenses decreased $23.2 million, or 30.5%, from $76.1 million for the year ended September 30, 2023 to $52.9 million for the year ended September 30, 2024. The decrease was due primarily to decreases in compensation and benefits, data processing expense and other operating expenses of $12.0 million, $2.2 million and $7.8 million, respectively.
Adjustable Rate Loans The following table sets forth the dollar amount of all loans at September 30, 2024 that are due after September 30, 2025, and have either fixed interest rates or adjustable interest rates.
(2) Includes farmland, land and land development loans. (3) Includes construction loans for which the Bank has committed to provide permanent financing. ​ Fixed vs. Adjustable Rate Loans The following table sets forth the dollar amount of all loans at September 30, 2025 that are due after September 30, 2026, and have either fixed interest rates or adjustable interest rates.

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