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First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2025

1. FSFG reports Q3 income of $6.2 million, up from $4.1 million last year. 2. Net interest margin increased to 2.99%, a growth of 32 basis points. 3. SBA Lending segment shows strong loan origins and profitability. 4. Total assets declined by $33.7 million since last quarter. 5. FSFG focuses on deposit growth and asset quality preservation.

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FAQ

Why Bullish?

The increase in net income and improved net interest margin reflect positive financial health, similar to past periods of strong quarterly performance that led to stock price gains.

How important is it?

The article outlines significant improvements in FSFG’s financial metrics, likely boosting investor confidence.

Why Short Term?

The positive results are likely to impact investor sentiment immediately, but long-term effects depend on sustained performance.

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JEFFERSONVILLE, Ind., July 24, 2025 (GLOBE NEWSWIRE) -- First Savings Financial Group, Inc. (NASDAQ: FSFG - news) (the "Company"), the holding company for First Savings Bank (the "Bank"), today reported net income of $6.2 million, or $0.88 per diluted share, for the quarter ended June 30, 2025, compared to net income of $4.1 million, or $0.60 per diluted share, for the quarter ended June 30, 2024. Excluding nonrecurring items, the Company reported net income of $5.7 million (non-GAAP measure)(1) and net income per diluted share of $0.81 (non-GAAP measure)(1) for the quarter ended June 30, 2025 compared to $3.5 million, or $0.52 per diluted share for the quarter ended June 30, 2024. Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the third fiscal quarter performance, including the continued improvement in the net interest margin, which has increased 32 basis points from June of 2024 to June of 2025, solid growth in deposits, expense containment, and meaningful efficiency ratio improvement. The SBA Lending segment posted its second consecutive profitable quarter, which included a solid level of loans originations and sales. Additionally, the SBA Lending pipeline for the fourth fiscal quarter remains robust. We are optimistic regarding the remainder of fiscal 2025 as we anticipate further expansion of the net interest margin, continued profitability from the SBA Lending segment, additional sales of home equity lines of credit, and stable and strong asset quality. We will continue our focus on customer deposit growth, select loan growth opportunities, preservation of asset quality, and prudent capital and liquidity management. We will also continue to evaluate options and strategies that we believe will maximize shareholder value.” (1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release. Results of Operations for the Three Months Ended June 30, 2025 and 2024 Net interest income increased $2.2 million, or 15.1%, to $16.7 million for the three months ended June 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended June 30, 2025 was 2.99% as compared to 2.67% for the same period in 2024. The increase in net interest income was due to an increase of $871,000 in interest income and a decrease of $1.3 million in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release. The Company recognized a provision for credit losses for loans and unfunded lending commitments of $347,000 and $77,000, respectively, and a reversal of provision for credit losses on securities of $1,000 for the three months ended June 30, 2025, compared to a provision for credit losses for loans, unfunded lending commitments and securities of $501,000, $158,000 and $84,000, respectively, for the same period in 2024. The Company recognized $309,000 in net charge-offs recognized during the three months ended June 30, 2025, of which $216,000 was related to unguaranteed portions of SBA loans. During the three months ended June 30, 2024, the Company recognized net charge-offs of $105,000, of which $49,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $1.7 million from $16.9 million at September 30, 2024 to $15.2 million at June 30, 2025. Noninterest income increased $1.3 million for the three months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in other income and net gain on sales of SBA loans of $565,000 and $351,000, respectively, and net gain on sales of home equity lines of credit (“HELOC”) of $617,000, partially offset by a $404,000 decrease in net unrealized gains on equity securities. The increase in other income was primarily due to a $487,000 gain recognized in connection with a lease termination. The was no gain on sales of HELOC in the 2024 period as the sale of this product commenced in fiscal 2025. Noninterest expense increased $1.3 million for the three months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to an increase in compensation and benefits of $904,000, which was due to routine salary increases and increases in bonus and incentive accruals in 2025 related to stronger Company performance. The Company recognized income tax expense of $963,000 for the three months ended June 30, 2025 compared to $483,000 for the same period in 2024. The increase is due primarily to higher taxable income in 2025 as compared to 2024. The effective tax rate for 2025 was 13.5% compared to 10.6% for 2024. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods. Results of Operations for the Nine Months Ended June 30, 2025 and 2024 The Company reported net income of $17.9 million, or $2.57 per diluted share, for the nine months ended June 30, 2025 compared to net income of $9.9 million, or $1.45 per diluted share, for the nine months ended June 30, 2024. Excluding nonrecurring items, the Company reported net income of $15.1 million (non-GAAP measure)(1) and net income per diluted share of $2.16 (non-GAAP measure)(1) for the nine months ended June 30, 2025 compared to net income of $9.4 million and net income per diluted share of $1.37 for the nine months ended June 30, 2024. The core banking segment reported net income of $17.2 million, or $2.46 per diluted share for the nine months ended June 30, 2025 compared to net income of $13.3 million and net income per diluted share of $1.92 for the nine months ended June 30, 2024. Excluding nonrecurring items, the core banking segment reported net income of $14.4 million (non-GAAP measure)(1), or $2.05 per diluted share (non-GAAP measure)(1) for the nine months ended June 30, 2025 compared to net income of $12.9 million and net income per diluted share of $1.89 for the nine months ended June 30, 2024. Net interest income increased $5.2 million, or 12.1%, to $48.2 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the nine months ended June 30, 2025 was 2.89% as compared to 2.67% for the same period in 2024. The increase in net interest income was due to a $5.5 million increase in interest income, partially offset by a $279,000 increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release. The Company recognized a reversal of provision for credit losses for loans and securities of $501,000 and $8,000, respectively, and a provision for unfunded lending commitments of $246,000 for the nine months ended June 30, 2025, compared to a provision for credit losses for loans and securities of $1.7 million and $107,000, respectively, and reversal of provision for unfunded lending commitments of $159,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of HELOC during the period and a decrease in qualitative reserves. The Company recognized net charge-offs totaling $271,000 for the nine months ended June 30, 2025, of which $52,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $224,000 in 2024, of which $15,000 was related to unguaranteed portions of SBA loans. Noninterest income increased $4.5 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to a $3.1 million net gain on sales of HELOC, a $403,000 net gain on sales of equity securities in 2025, and the aforementioned $487,000 gain recognized in connection with a lease termination in the 2025 period with no corresponding gain amounts for the 2024 period. Noninterest expense increased $2.1 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $1.4 million and $1.1 million, respectively, partially offset by a decrease in professional fees of $412,000. The increase in compensation and benefits is primarily due to routine salary increases and increases in bonus and incentive accruals in 2025 related to stronger Company performance. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period with no corresponding amount for the 2025 period and a $405,000 accrued contingent liability associated with employee benefits recognized in the 2025 period with no corresponding amount in the 2024 period. The decrease in professional fees is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023. The Company recognized income tax expense of $2.4 million for the nine months ended June 30, 2025 compared to $873,000 for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period. The effective tax rate for 2025 was 11.8% compared to 8.1%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods. Comparison of Financial Condition at June 30, 2025 and September 30, 2024 Total assets decreased $33.7 million, from $2.45 billion at September 30, 2024 to $2.42 billion at June 30, 2025. Net loans held for investment decreased $68.0 million during the nine months ended June 30, 2025, due primarily to $109.1 million of sales of HELOC during the nine months ended June 30, 2025, and residential mortgage loans held for sale increased $42.1 million during the same period. Total liabilities decreased $40.4 million due primarily to a decrease in total deposits and other borrowings of $144.7 and $19.9 million, respectively, partially offset by an increase in FHLB borrowings of $133.3 million. The decrease in total deposits was due to a decrease in brokered deposits of $229.1 million, which was due primarily to proceeds from the aforementioned sales of HELOC and greater utilization of FHLB borrowings, partially offset by an increase in customer deposits of $84.4 million. The decrease in other borrowings is due to the redemption of $20.0 million of subordinated notes during the quarter ended June 30, 2023. As of June 30, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 35.0% of total deposits and 14.3% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund. Total stockholders’ equity increased $6.7 million, from $177.1 million at September 30, 2024 to $183.8 million at June 30, 2025, due primarily to a $14.6 million increase in retained net income, partially offset by a $8.9 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the nine months ended June 30, 2025, which resulted in a decrease in the fair value of securities available for sale. At June 30, 2025 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines. First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.” This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed in the Company's periodic filings with the Securities and Exchange Commission. Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements. Contact:Tony A. Schoen, CPAChief Financial Officer812-283-0724  FIRST SAVINGS FINANCIAL GROUP, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS(Unaudited)                     Three Months Ended Nine Months Ended  OPERATING DATA:June 30, June 30,  (In thousands, except share and per share data) 2025   2024   2025   2024             Total interest income$31,965  $31,094  $95,237  $89,765   Total interest expense 15,240   16,560   47,059   46,780             Net interest income 16,725   14,534   48,178   42,985             Provision (credit) for credit losses - loans 347   501   (501)  1,684   Provision (credit) for unfunded lending commitments 77   158   246   (159)  Provision (credit) for credit losses - securities (1)  84   (8)  107             Total provision (credit) for credit losses 423   743   (263)  1,632             Net interest income after provision (credit) for credit losses 16,302   13,791   48,441   41,353             Total noninterest income 4,520   3,196   14,183   9,688   Total noninterest expense 13,693   12,431   42,334   40,248             Income before income taxes 7,129   4,556   20,290   10,793   Income tax expense 963   483   2,400   873             Net income$6,166  $4,073  $17,890  $9,920             Net income per share, basic$0.90  $0.60  $2.60  $1.45   Weighted average shares outstanding, basic 6,881,077   6,832,452   6,867,734   6,829,490             Net income per share, diluted$0.88  $0.60  $2.57  $1.45   Weighted average shares outstanding, diluted 6,977,674   6,834,784   6,967,742   6,851,145                       Performance ratios (annualized)         Return on average assets 1.02%  0.69%  0.99%  0.57%  Return on average equity 13.66%  9.86%  13.32%  8.23%  Return on average common stockholders' equity 13.66%  9.86%  13.32%  8.23%  Net interest margin (tax equivalent basis) 2.99%  2.67%  2.89%  2.67%  Efficiency ratio 64.45%  70.11%  67.89%  76.41%                           QTD   FYTDFINANCIAL CONDITION DATA:June 30, March 31, Increase September 30, Increase(In thousands, except per share data) 2025   2025  (Decrease)  2024  (Decrease)          Total assets$2,416,675  $2,376,230  $40,445  $2,450,368  $(33,693)Cash and cash equivalents 52,123   28,683   23,440   52,142   (19)Investment securities 244,284   244,084   200   249,719   (5,435)Loans held for sale 60,970   61,239   (269)  25,716   35,254 Gross loans 1,916,343   1,900,660   15,683   1,985,146   (68,803)Allowance for credit losses 20,522   20,484   38   21,294   (772)Interest earning assets 2,260,099   2,219,504   40,595   2,277,512   (17,413)Goodwill 9,848   9,848   -   9,848   - Core deposit intangibles 275   316   (41)  398   (123)Noninterest-bearing deposits 202,649   185,252   17,397   191,528   11,121 Interest-bearing deposits (customer) 1,253,525   1,207,159   46,366   1,180,196   73,329 Interest-bearing deposits (brokered) 280,020   396,770   (116,750)  509,157   (229,137)Federal Home Loan Bank borrowings 434,924   325,310   109,614   301,640   133,284 Subordinated debt and other borrowings 28,722   48,682   (19,960)  48,603   (19,881)Total liabilities 2,232,853   2,197,041   35,812   2,273,253   (40,400)Accumulated other comprehensive loss (20,061)  (19,385)  (676)  (11,195)  (8,866)Total stockholders' equity 183,822   179,189   4,633   177,115   6,707           Book value per share$26.35  $25.90   0.45  $25.72   0.63 Tangible book value per share (non-GAAP) (1) 24.90   24.43   0.47   24.23   0.67           Non-performing assets:         Nonaccrual loans - SBA guaranteed$2,713  $123  $2,590  $5,036  $(2,323)Nonaccrual loans 12,502   12,597   (95)  11,906   596 Total nonaccrual loans$15,215  $12,720  $2,495  $16,942  $(1,727)Accruing loans past due 90 days -   -   -   -   - Total non-performing loans 15,215   12,720   2,495   16,942   (1,727)Foreclosed real estate 1,113   444   669   444   669 Total non-performing assets$16,328  $13,164  $3,164  $17,386  $(1,058)          Asset quality ratios:         Allowance for credit losses as a percent of total gross loans 1.07%  1.08%  (0.01%)  1.07%  (0.00%)Allowance for credit losses as a percent of nonperforming loans 134.88%  161.04%  (26.16%)  125.69%  9.19%Nonperforming loans as a percent of total gross loans 0.79%  0.67%  0.12%  0.85%  (0.06%)Nonperforming assets as a percent of total assets 0.68%  0.55%  0.13%  0.71%  (0.03%)          (1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.                          RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):         The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company's performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company's consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.         Three Months Ended Fiscal Year Ended  Net Income June 30, June 30,  (In thousands) 2025   2024   2025   2024             Net income attributable to the Company (non-GAAP)$5,691  $3,534  $15,057  $9,381   Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect -   -   1,869   -   Plus: Gain on life insurance, net of tax effect 110   -   110   -   Plus: Gain on lease termination, net of tax effect 365   -   365   -   Plus: Gain on sale of equity securities, net of tax effect -   -   302   -   Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect -   212   -   212   Plus: Gain on sale of premises and equipment, net of tax effect -   -   186   -   Plus: Recording of Visa Class C shares, net of tax -   327   -   327   Net income attributable to the Company (GAAP)$6,166  $4,073  $17,890  $9,920             Net Income per Share, Diluted                   Net income per share attributable to the Company, diluted (non-GAAP)$0.81  $0.52  $2.16  $1.37   Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect -   -   0.27   -   Plus: Gain on life insurance, net of tax effect 0.02   -   0.02   -   Plus: Gain on lease termination, net of tax effect 0.05   -   0.05   -   Plus: Gain on sale of equity securities, net of tax effect -   -   0.04   -   Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect -   0.03   -   0.03   Plus: Gain on sale of premises and equipment, net of tax effect -   -   0.03   -   Plus: Recording of Visa Class C shares, net of tax -   0.05   -   0.05   Net income per share, diluted (GAAP)$0.88  $0.60  $2.57  $1.45             Core Bank Segment Net Income         (In thousands)                   Net income attributable to the Core Bank (non-GAAP)$5,299  $4,176  $14,379  $12,947   Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect -   -   1,869   -   Plus: Gain on life insurance, net of tax effect 110   -   110   -   Plus: Gain on lease termination, net of tax effect 365   -   365   -   Plus: Gain on sale of equity securities, net of tax effect -   -   302   -   Plus: Gain on sale of premises and equipment, net of tax effect -   -   186   -   Plus: Recording of Visa Class C shares, net of tax -   327   -   327   Net income attributable to the Core Bank (GAAP)$5,774  $4,503  $17,212  $13,274             Core Bank Segment Net Income per Share, Diluted                   Core Bank net income per share, diluted (non-GAAP)$0.75  $0.64  $2.05  $1.89   Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect -   -   0.27   -   Plus: Gain on life insurance, net of tax effect 0.02   -   0.02   -   Plus: Gain on lease termination, net of tax effect 0.05   -   0.05   -   Plus: Gain on sale of equity securities, net of tax effect -   -   0.04   -   Plus: Gain on sale of premises and equipment, net of tax effect -   -   -   0.03   Plus: Recording of Visa Class C shares, net of tax -   0.05   0.03   -   Core Bank net income per share, diluted (GAAP)$0.82  $0.69  $2.46  $1.92                       RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED):Three Months Ended Fiscal Year Ended  Efficiency RatioJune 30, June 30,  (In thousands) 2025   2024   2025   2024             Net interest income (GAAP)$16,725  $14,534  $48,178  $42,985             Noninterest income (GAAP) 4,520   3,196   14,183   9,688             Noninterest expense (GAAP) 13,693   12,431   42,334   40,248             Efficiency ratio (GAAP) 64.45%  70.11%  67.89%  76.41%            Noninterest income (GAAP)$4,520  $3,196  $14,183  $9,688   Less: Gain on bulk sale of loans, home equity lines of credit -   -   (2,492)  -   Less: Gain on life insurance (147)  -   (147)  -   Less: Gain on lease termination (487)  -   (487)  -   Less: Gain on sale of equity securities -   -   (403)  -   Less: Gain on sale of premises and equipment -   -   (140)  -   Less: Recording of Visa Class C shares -   (245)  -   (245)  Noninterest income (Non-GAAP) 3,886   2,951   10,515   9,443             Noninterest expense (GAAP)$13,693  $12,431  $42,334  $40,248   Plus: Decrease in loss contingency for SBA-guaranteed loans -   283   -   283   Noninterest expense (Non-GAAP)$13,693  $12,714  $42,334  $40,531             Efficiency ratio (excluding nonrecurring items) (non-GAAP) 66.44%  72.71%  72.13%  77.31%                 QTD   FYTDTangible Book Value Per ShareJune 30, March 31, Increase September 30, Increase(In thousands, except share and per share data) 2025   2025  (Decrease)  2024  (Decrease)          Stockholders' equity (GAAP)$183,822  $179,189  $4,633  $177,115  $6,707 Less: goodwill and core deposit intangibles (10,123)  (10,164)  41   (10,246)  123 Tangible stockholders' equity (non-GAAP)$173,699  $169,025  $4,674  $166,869  $6,830           Outstanding common shares 6,976,558   6,919,136  $57,422   6,887,106  $89,452           Tangible book value per share (non-GAAP)$24.90  $24.43  $0.47  $24.23  $0.67           Book value per share (GAAP)$26.35  $25.90  $0.45  $25.72  $0.63                               SUMMARIZED FINANCIAL INFORMATION (UNAUDITED):As ofSummarized Consolidated Balance SheetsJune 30, March 31, December 31, September 30, June 30,(In thousands, except per share data) 2025   2025   2024   2024   2024           Total cash and cash equivalents$52,123  $28,683  $76,224  $52,142  $42,423 Total investment securities 244,284   244,084   242,634   249,719   238,785 Total loans held for sale 60,970   61,239   24,441   25,716   125,859 Total loans, net of allowance for credit losses 1,895,821   1,880,176   1,884,514   1,963,852   1,826,980 Loan servicing rights 2,869   2,744   2,661   2,754   2,860 Total assets 2,416,675   2,376,230   2,388,735   2,450,368   2,393,491           Customer deposits$1,456,174  $1,392,411  $1,395,766  $1,371,724  $1,312,997 Brokered deposits 280,020   396,770   437,008   509,157   399,151 Total deposits 1,736,194   1,789,181   1,832,774   1,880,881   1,712,148 Federal Home Loan Bank borrowings 434,924   325,310   295,000   301,640   425,000           Common stock and additional paid-in capital$30,090  $28,650  $28,382  $27,725  $27,592 Retained earnings - substantially restricted 187,969   182,918   178,526   173,337   170,688 Accumulated other comprehensive loss (20,061)  (19,385)  (17,789)  (11,195)  (17,415)Unearned stock compensation (2,005)  (862)  (973)  (901)  (999)Less treasury stock, at cost (12,171)  (12,132)  (12,119)  (11,851)  (11,866)Total stockholders' equity 183,822   179,189   176,027   177,115   168,000           Outstanding common shares 6,976,558   6,919,136   6,909,173   6,887,106   6,883,656                      Three Months EndedSummarized Consolidated Statements of IncomeJune 30, March 31, December 31, September 30, June 30,(In thousands, except per share data) 2025   2025   2024   2024   2024           Total interest income$31,965  $30,823  $32,449  $32,223  $31,094 Total interest expense 15,240   14,832   16,987   17,146   16,560 Net interest income 16,725   15,991   15,462   15,077   14,534 Provision (credit) for credit losses - loans 347   (357)  (491)  1,808   501 Provision (credit) for unfunded lending commitments 77   123   46   (262)  158 Provision (credit) for credit losses - securities (1)  (1)  (6)  (86)  84 Total provision (credit) for credit losses 423   (235)  (451)  1,460   743           Net interest income after provision for credit losses 16,302   16,226   15,913   13,617   13,791           Total noninterest income 4,520   3,560   6,103   2,842   3,196 Total noninterest expense 13,693   13,698   14,943   12,642   12,431 Income before income taxes 7,129   6,088   7,073   3,817   4,556 Income tax expense (benefit) 963   589   848   145   483 Net income 6,166   5,499   6,225   3,672   4,073                     Net income per share, basic$0.90  $0.80  $0.91  $0.54  $0.60 Weighted average shares outstanding, basic 6,881,077   6,875,826   6,851,153   6,832,626   6,832,452           Net income per share, diluted$0.88  $0.79  $0.89  $0.53  $0.60 Weighted average shares outstanding, diluted 6,977,674   6,960,020   6,969,223   6,894,532   6,842,336                     SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months EndedNoninterest Income DetailJune 30, March 31, December 31, September 30, June 30,(In thousands) 2025   2025   2024   2024   2024           Service charges on deposit accounts$537  $541  $567  $552  $538 ATM and interchange fees 648   632   665   642   593 Net unrealized gain on equity securities 15   47   78   28   419 Net gain on equity securities -   -   403   -   - Net gain on sales of loans, Small Business Administration 932   1,078   711   647   581 Net gain on sales of loans, home equity lines of credit 617   -   2,492   -   - Mortgage banking income 96   104   78   6   49 Increase in cash surrender value of life insurance 358   380   361   363   353 Gain on life insurance 147   -   108   -   - Commission income 184   255   210   294   220 Real estate lease income 132   122   121   122   154 Net gain (loss) on premises and equipment -   -   45   (4)  - Other income 854   401   264   192   289 Total noninterest income$4,520  $3,560  $6,103  $2,842  $3,196                      Three Months Ended June 30, March 31, December 31, September 30, June 30,Consolidated Performance Ratios (Annualized) 2025   2025   2024   2024   2024           Return on average assets 1.02%  0.93%  1.02%  0.61%  0.69%Return on average equity 13.66%  12.24%  14.07%  8.52%  9.86%Return on average common stockholders' equity 13.66%  12.34%  14.07%  8.52%  9.86%Net interest margin (tax equivalent basis) 2.99%  2.93%  2.75%  2.72%  2.67%Efficiency ratio 64.45%  70.06%  69.29%  70.55%  70.11%                     As of or for the Three Months Ended June 30, March 31, December 31, September 30, June 30,Consolidated Asset Quality Ratios 2025   2025   2024   2024   2024           Nonperforming loans as a percentage of total loans 0.79%  0.67%  0.87%  0.85%  0.91%Nonperforming assets as a percentage of total assets 0.68%  0.55%  0.71%  0.71%  0.72%Allowance for credit losses as a percentage of total loans 1.07%  1.08%  1.09%  1.07%  1.07%Allowance for credit losses as a percentage of nonperforming loans 134.88%  161.04%  124.85%  125.69%  118.12%Net charge-offs to average outstanding loans 0.02%  -0.01%  0.01%  0.02%  0.01%                    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months EndedSegmented Statements of Income InformationJune 30, March 31, December 31, September 30, June 30,(In thousands) 2025   2025   2024   2024   2024           Core Banking Segment:         Net interest income$15,086  $14,259  $13,756  $14,083  $13,590 Provision (credit) for credit losses - loans 420   (540)  (745)  1,339   320 Provision (credit) for unfunded lending commitments 32   35   (75)  78   64 Provision (credit) for credit losses - securities (1)  (1)  (7)  (86)  84 Total provision (credit) for credit losses 451   (506)  (827)  1,331   468 Net interest income after provision (credit) for credit losses 14,635   14,765   14,583   12,752   13,122 Noninterest income 3,340   2,242   5,253   2,042   2,474 Noninterest expense 11,366   11,486   12,574   10,400   10,192 Income before income taxes 6,609   5,521   7,262   4,394   5,404 Income tax expense 835   452   893   301   689 Net income$5,774  $5,069  $6,369  $4,093  $4,715           SBA Lending Segment (Q2):         Net interest income$1,639  $1,732  $1,706  $994  $944 Provision (credit) for credit losses - loans (73)  183   255   469   181 Provision (credit) for unfunded lending commitments 45   88   121   (340)  94 Total provision (credit) for credit losses (28)  271   376   129   275 Net interest income after provision for credit losses 1,667   1,461   1,330   865   669 Noninterest income 1,180   1,318   850   800   722 Noninterest expense 2,327   2,212   2,369   2,242   2,239 Income (loss) before income taxes 520   567   (189)  (577)  (848)Income tax expense (benefit) 128   137   (45)  (156)  (206)Net income (loss)$392  $430  $(144) $(421) $(642)                    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months EndedSegmented Statements of Income InformationJune 30, March 31, December 31, September 30, June 30,(In thousands, except percentage data) 2025   2025   2024   2024   2024           Net Income (Loss) Per Share by Segment         Net income per share, basic - Core Banking$0.84  $0.74  $0.93  $0.60  $0.69 Net income (loss) per share, basic - SBA Lending (Q2) 0.06   0.06   (0.02)  (0.06)  (0.09)Total net income (loss) per share, basic$0.90  $0.80  $0.91  $0.54  $0.60           Net Income (Loss) Per Diluted Share by Segment         Net income per share, diluted - Core Banking$0.82  $0.73  $0.91  $0.59  $0.69 Net income (loss) per share, diluted - SBA Lending (Q2) 0.06   0.06   (0.02)  (0.06)  (0.09)Total net income per share, diluted$0.88  $0.79  $0.89  $0.53  $0.60           Return on Average Assets by Segment (annualized) (3)         Core Banking 1.01%  0.90%  1.09%  0.71%  0.83%SBA Lending 1.36%  1.58%  (0.55%)  (1.71%)  (2.91%)          Efficiency Ratio by Segment (annualized) (3)         Core Banking 61.68%  69.61%  66.15%  64.50%  63.45%SBA Lending 82.55%  72.52%  92.68%  124.97%  134.39%                     Three Months EndedNoninterest Expense Detail by SegmentJune 30, March 31, December 31, September 30, June 30,(In thousands) 2025   2025   2024   2024   2024           Core Banking Segment:         Compensation$6,470  $6,637  $7,245  $5,400  $5,587 Occupancy 1,533   1,648   1,577   1,554   1,573 Advertising 437   429   338   399   253 Other 2,926   2,772   3,414   3,047   2,779 Total Noninterest Expense$11,366  $11,486  $12,574  $10,400  $10,192           SBA Lending Segment (Q2):         Compensation$1,914  $1,892  $1,931  $1,854  $1,893 Occupancy 92   50   59   55   51 Advertising 17   10   14   17   12 Other 304   260   365   316   283 Total Noninterest Expense$2,327  $2,212  $2,369  $2,242  $2,239                     SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months EndedSBA Lending (Q2) DataJune 30, March 31, December 31, September 30, June 30,(In thousands, except percentage data) 2025   2025   2024   2024   2024           Final funded loans guaranteed portion sold, SBA$18,019  $15,716  $10,785  $10,880  $7,515           Gross gain on sales of loans, SBA$1,548  $1,508  $1,141  $1,029  $811 Weighted average gross gain on sales of loans, SBA 8.59%  9.60%  10.58%  9.46%  10.79%          Net gain on sales of loans, SBA (2)$932  $1,078  $711  $647  $581 Weighted average net gain on sales of loans, SBA 5.17%  6.86%  6.59%  5.95%  7.73%                    (2) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.                        SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED):Three Months EndedSummarized Consolidated Average Balance SheetsJune 30, March 31, December 31, September 30, June 30,(In thousands) 2025   2025   2024   2024   2024 Interest-earning assets         Average balances:         Interest-bearing deposits with banks$15,889  $11,851  $21,102  $16,841  $26,100 Loans 1,992,567   1,946,338   2,010,082   1,988,997   1,943,716 Investment securities - taxable 104,169   102,744   101,960   99,834   101,350 Investment securities - nontaxable 162,017   161,579   160,929   158,917   157,991 FRB and FHLB stock 24,993   24,986   24,986   24,986   24,986 Total interest-earning assets$2,299,635  $2,247,498  $2,319,059  $2,289,575  $2,254,143           Interest income (tax equivalent basis):         Interest-bearing deposits with banks$145  $168  $210  $209  $324 Loans 29,214   27,998   29,617   29,450   28,155 Investment securities - taxable 947   921   914   910   918 Investment securities - nontaxable 1,733   1,719   1,715   1,685   1,665 FRB and FHLB stock 416   511   493   471   519 Total interest income (tax equivalent basis)$32,455  $31,317  $32,949  $32,725  $31,581           Weighted average yield (tax equivalent basis, annualized):         Interest-bearing deposits with banks 3.65%  5.67%  3.98%  4.96%  4.97%Loans 5.86%  5.75%  5.89%  5.92%  5.79%Investment securities - taxable 3.64%  3.59%  3.59%  3.65%  3.62%Investment securities - nontaxable 4.28%  4.26%  4.26%  4.24%  4.22%FRB and FHLB stock 6.66%  8.18%  7.89%  7.54%  8.31%Total interest-earning assets 5.65%  5.57%  5.68%  5.72%  5.60%          Interest-bearing liabilities         Interest-bearing deposits$1,537,248  $1,653,058  $1,671,156  $1,563,258  $1,572,871 Federal Home Loan Bank borrowings 437,371   266,975   315,583   378,956   351,227 Subordinated debt and other borrowings 35,070   48,656   48,616   48,576   48,537 Total interest-bearing liabilities$2,009,689  $1,968,689  $2,035,355  $1,990,790  $1,972,635           Interest expense:         Interest-bearing deposits$10,601  $12,069  $13,606  $12,825  $12,740 Federal Home Loan Bank borrowings 4,149   2,001   2,617   3,521   3,021 Subordinated debt and other borrowings 489   762   764   800   799 Total interest expense$15,239  $14,832  $16,987  $17,146  $16,560           Weighted average cost (annualized):         Interest-bearing deposits 2.76%  2.92%  3.26%  3.28%  3.24%Federal Home Loan Bank borrowings 3.79%  3.00%  3.32%  3.72%  3.44%Subordinated debt and other borrowings 5.58%  6.26%  6.29%  6.59%  6.58%Total interest-bearing liabilities 3.03%  3.01%  3.34%  3.45%  3.36%          Net interest income (taxable equivalent basis)$17,216  $16,485  $15,962  $15,579  $15,021 Less: taxable equivalent adjustment (491)  (494)  (500)  (502)  (487)Net interest income$16,725  $15,991  $15,462  $15,077  $14,534           Interest rate spread (tax equivalent basis, annualized) 2.62%  2.56%  2.34%  2.27%  2.24%          Net interest margin (tax equivalent basis, annualized) 2.99%  2.93%  2.75%  2.72%  2.67%          

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