First Savings Financial Group, Inc. (FSFG): Business Model Canvas [Apr-2026 Updated]

You're digging into the strategy of First Savings Financial Group, Inc. (FSFG) right as they face a major pivot with the pending merger with First Merchants Corporation. Honestly, what makes their model interesting is this dual play: they are a community bank rooted in Southern Indiana, but they also run a national lending machine, especially for SBA and single-tenant net lease deals. With assets hitting $2.4 billion and a strong $65.3 million in Net Interest Income for FY2025, their structure is a fascinating mix of local relationship banking and specialized, far-reaching origination. Let's break down exactly how they balance those two worlds in their Business Model Canvas below.

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Key Partnerships

The Key Partnerships for First Savings Financial Group, Inc. (FSFG) as of late 2025 are heavily influenced by the pending acquisition by First Merchants Corporation (FRME) and ongoing operational relationships.

First Merchants Corporation (FRME) for the pending merger

The definitive merger agreement was signed on September 24, 2025, valuing the all-stock transaction at approximately $241.3 million. Under the terms, FSFG common shareholders receive 0.85 shares of First Merchants common stock for each FSFG share, implying a consideration of $33.60 per share based on FRME's closing price of $39.53 on that date.

Prior to the merger, First Savings Financial Group, Inc. reported total assets of $2.4 billion, total loans of $1.9 billion, and total deposits of $1.7 billion as of June 30, 2025. The combined entity is projected to hold approximately $21.0 billion in assets across 127 branches in Indiana, Michigan, and Ohio. First Merchants anticipates the combined company will see approximately 11% earnings per share accretion in 2027, with a tangible book value earnback period of 3.0 years. FSFG's fiscal year 2025 (ended September 30, 2025) net income, excluding merger expenses, was reported at $23.8 million, or $3.41 per diluted share.

The shareholder vote on the merger proposal is scheduled for December 19, 2025.

Here are the key financial metrics for First Savings Financial Group, Inc. for the fiscal year ended September 30, 2025, relevant to the transaction valuation:

Metric	Value (FY Ended 9/30/2025)	Comparison Point
Net Income (GAAP)	$23.2 million	Up from $13.6 million in FY 2024.
Net Interest Income	$65.3 million	Increased by 12.5% year-over-year.
Tax Equivalent Net Interest Margin	2.94%	Improved from 2.68% in the previous year.
Net Gain on Sales of HELOC	$4.0 million	Key driver of Noninterest Income rise.
Increase in Net Gain on Sale of SBA loans	$1.2 million	Part of a significant rise in Noninterest Income.

Small Business Administration (SBA) for national lending programs

First Savings Financial Group, Inc. actively participates in SBA lending, with the segment posting its third consecutive profitable quarter as of September 30, 2025. The segment's profitability hinges on origination and sales volumes. The net gain on sales of SBA loans contributed $1.2 million to the increase in noninterest income for the full fiscal year 2025. For the third quarter ended June 30, 2025, the net gain on sales of SBA loans was $351,000.

Credit performance metrics related to SBA loans for the year ended September 30, 2025, include:

• Net charge-offs related to unguaranteed portions of SBA loans: $454,000.
• Net charge-offs related to unguaranteed portions of SBA loans in FY 2024: $104,000.
• Net charge-offs related to unguaranteed portions of SBA loans for Q3 2025: $216,000.
• Provision for unfunded lending commitments recognized in FY 2025: $452,000.

The SBA lending vertical is specifically noted by the First Merchants CEO as an area that will offer steady, diversified loan growth opportunities post-merger.

Financial technology vendors for digital banking infrastructure

First Savings Financial Group, Inc. utilizes financial technology vendors to support its banking infrastructure, including initiatives like pivoting to an originate-for-sale Home Equity Line of Credit (HELOC) model to enhance noninterest income. The company reported a $4.0 million net gain on sales of HELOCs for the fiscal year ended September 30, 2025.

Specific financial commitments or contract values with individual fintech vendors are not publicly detailed in the latest reports, but the operational focus suggests ongoing vendor reliance for:

• Digital banking platforms.
• Loan origination and servicing technology.
• Security and compliance infrastructure.

Correspondent banks for liquidity and services

Correspondent banking relationships are a standard component for regional banks like First Savings Financial Group, Inc., providing support for liquidity management and specialized services outside their core footprint. [cite: No direct citation found, general banking knowledge] The company saw customer deposits increase by $118.2 million since September 2024, as of September 30, 2025. The reliance on these partners is expected to transition under the First Merchants Corporation umbrella, which has combined assets of approximately $21.0 billion.

Forvis Mazars, LLP as independent registered public accounting firm

Forvis Mazars, LLP serves as the independent registered public accounting firm. [cite: No direct citation found for FSFG appointment, but Forvis Mazars is a major firm] Forvis Mazars is an international audit, accounting, and consulting business formed in June 2024, operating in the US and over 100 other countries, placing it among the top 10 global audit firms by revenue at the time of its formation. The firm is actively involved in financial reporting and tax planning guidance for 2025 year-end.

Specific audit or tax advisory fees paid by First Savings Financial Group, Inc. to Forvis Mazars, LLP for the 2025 fiscal year are not itemized in the available public disclosures. [cite: No direct citation found]

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Key Activities

Core banking operations and deposit gathering in southern Indiana

First Savings Financial Group, Inc. operates 16 banking center locations concentrated in southern Indiana, which is the core of its deposit gathering activity. As of the quarter ended June 30, 2025, total deposits stood at $1.7 billion. Customer deposits increased by $118.2 million since September 2024.

Origination of residential and commercial real estate loans

The primary lending focus involves originating residential real estate mortgage loans, which are primarily one- to four-family residential loans, alongside single tenant net lease loans. Commercial real estate and commercial business loans are originated to a lesser extent. The company also originates residential and commercial construction loans, land and land development loans, and consumer loans, generally for investment purposes.

National origination of SBA and single-tenant net lease loans

First Savings Financial Group, Inc. maintains two national lending programs: single-tenant net lease commercial real estate and SBA lending. The SBA Lending segment achieved its third consecutive profitable quarter for the year ended September 30, 2025. For the year ended September 30, 2024, the company originated SBA loans with a total commitment of $79.3 million. The SBA Lending segment showed a solid level of loan originations and sales for the fiscal year ended September 30, 2025.

• SBA loan originations totaled $79.3 million commitment in FY 2024.
• Net SBA loans outstanding in portfolio at September 30, 2024, were $105.3 million.
• The segment posted its third consecutive profitable quarter in FY 2025.

Strategic 'originate-for-sale' model for first-lien HELOCs

First Savings Financial Group, Inc. actively employs a strategy to originate and sell first-lien Home Equity Lines of Credit (HELOCs). During the nine months ended June 30, 2025, the company executed $109.1 million of sales of HELOCs. This activity contributed to a $4.0 million net gain on sales of home equity lines of credit (HELOC) recognized for the year ended September 30, 2025. The company anticipated continuing this strategy with additional sales of HELOCs in the remainder of fiscal 2025.

Managing a loan portfolio of $1.9 billion as of June 2025

The management of the loan portfolio is a central activity, with total loans reported at $1.9 billion as of June 30, 2025. The company's focus on asset quality is reflected in the decrease of nonperforming loans to $14.6 million at September 30, 2025, down from $16.9 million at September 30, 2024. The efficiency ratio improved by 723 basis points from September 2024 to September 2025. The company's performance metrics for the quarter ended June 30, 2025, include a return on average assets (annualized) of 1.02% and a return on average equity (annualized) of 13.7%. The tax-equivalent net interest margin for the three months ended June 30, 2025, was 2.99%.

Metric	Value as of June 30, 2025 (or period end)	Period Reference
Total Loans Held for Investment	$1.9 billion	June 30, 2025
Total Deposits	$1.7 billion	June 30, 2025
Net Loans Held for Investment Change	Decrease of $68.0 million	Nine months ended June 30, 2025
HELOC Sales Volume	$109.1 million	Nine months ended June 30, 2025
Net Gain on HELOC Sales	$4.0 million	Year ended September 30, 2025
Nonperforming Loans	$14.6 million	September 30, 2025

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Key Resources

You're looking at the foundational assets that power First Savings Financial Group, Inc.'s operations as of late 2025. These aren't just line items; they are the engines driving their business model, especially as they navigate the announced merger with First Merchants Corporation.

The physical footprint remains a critical resource, anchoring their community banking segment. First Savings Financial Group, Inc. maintains 16 established banking center locations in southern Indiana. This network is the primary touchpoint for their core deposit gathering and local relationship management.

Financially, the balance sheet strength provides the necessary foundation for lending and regulatory compliance. As of June 2025, the firm reported Total assets of $2.4 billion. This asset base is funded significantly by local relationships, evidenced by a Core deposit base of $1.7 billion as of June 2025.

The capital structure supports their performance metrics. The regulatory capital base is positioned to support a reported Return on Average Equity of 12.80% in FY2025. This level of return on equity demonstrates efficient use of shareholder capital, which is a key resource in attracting and retaining investment.

Beyond the local branch network, specialized expertise is a vital intangible resource. First Savings Financial Group, Inc. deploys experienced lending teams for national SBA and CRE programs. These national verticals offer diversification away from purely local lending cycles, a strategic asset noted by their acquirer.

Here's a quick look at the core financial and physical resources as of the mid-year 2025 reporting period:

Key Resource Metric	Value as of June 2025 / FY2025
Total Assets	$2.4 billion
Core Deposit Base	$1.7 billion
Banking Center Locations	16 (Southern Indiana)
Return on Average Equity (FY2025)	12.80%

The lending capability is further defined by the specific programs they emphasize. These lending specializations act as a resource differentiator in the market.

• National SBA Lending programs.
• National Commercial Real Estate (CRE) programs.
• Single-tenant net lease financing capabilities.

These lending verticals, supported by experienced teams, are designed to generate steady, diversified loan growth across various economic conditions, which is a resource in itself for stability.

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose First Savings Financial Group, Inc. (FSFG) over competitors. It boils down to a dual offering: deep local roots combined with specialized, far-reaching lending capabilities, all backed by recent, impressive profitability.

Community bank focus with personalized relationship banking

First Savings Financial Group, Inc. operates as an entrepreneurial community bank, which means the value proposition centers on local trust and direct service. The organization's stated vision is, 'We Expect To Be The BEST community BANK.' The physical footprint supports this local commitment, with First Savings Bank operating fifteen depository branches within Southern Indiana as of late 2025.

This local presence supports relationship banking, where decisions are made close to the customer. The core banking segment demonstrated strong profitability, reporting GAAP net income of $6.37M for the first fiscal quarter of 2025.

Specialized national lending for SBA and single-tenant net lease CRE

A key differentiator for First Savings Financial Group, Inc. is its two national lending programs, which extend its reach beyond Southern Indiana. These programs focus on SBA lending and single-tenant net lease commercial real estate (CRE). This national focus diversifies the credit risk profile, as the NNN Finance Program, for example, targets loans secured by properties leased to investment grade national-brand retailers, with collateral outside the primary market area.

While the SBA segment faced headwinds, reporting a segment net loss of $0.14M in Q1 FY2025, the overall loan portfolio quality showed improvement, with nonperforming loans decreasing to $14.6 million at September 30, 2025, down from $16.9 million the prior year.

Strong financial performance with a FY2025 net profit margin of 27.1%

The financial results as of late 2025 strongly support the value proposition of operational efficiency and profitability. The reported net profit margin for the trailing twelve months ending September 2025 reached 27.1%, more than double the prior year's 12.7%. This level places First Savings Financial Group, Inc. well ahead of typical sector averages for US banks. This strong margin performance accompanied a staggering twelve-month Earnings Per Share (EPS) growth of 135.1%. The total assets for First Savings Financial Group, Inc. stood at $2.40 billion as of September 30, 2025.

Here's a quick look at the financial strength underpinning these value propositions:

Metric	Value (as of late 2025/FY2025)	Context
Net Profit Margin (TTM)	27.1%	Surged from 12.7% in the prior period.
Total Assets	$2.40 billion	As of September 30, 2025.
12-Month EPS Growth	135.1%	Sharp turnaround from a 5-year annual decline of 28.3%.
Shares Outstanding	6,976,558	As of August 2, 2025.

Full suite of consumer and business financial services

First Savings Financial Group, Inc. offers a comprehensive range of services beyond its specialized lending. The bank provides various deposit products, loans, and digital banking solutions to individuals and businesses. The loan portfolio includes offerings such as:

• One- to four-family residential loans.
• Commercial real estate loans (fixed-rate, up to five-year terms).
• Multi-family mortgage loans.
• Residential and commercial construction loans.
• Consumer loans.

Local decision-making combined with national lending expertise

The structure explicitly combines local service with national reach. The Bank is headquartered in Jeffersonville, Indiana, and operates its fifteen branches locally, yet its two national lending programs-SBA and single-tenant net lease CRE-have offices located predominately in the Midwest. This structure allows for local relationship management while tapping into specialized, potentially higher-yield, or geographically diversified national credit opportunities. The SBA lending program, for instance, has specific internal approval committees, showing structured expertise for that national product.

Finance: draft 13-week cash view by Friday.

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Customer Relationships

First Savings Financial Group, Inc. structures its customer relationships around a core of community-focused, personalized service, which it blends with technology to serve both local and national clients. The relationship banking model is central to its operations, particularly within its primary market area of South Central Indiana, where it focuses on small businesses and consumers by emphasizing local decision-making and community involvement. Lenders remain heavily involved throughout the banking relationship, ensuring lending decisions are made locally, which supports the goal of fostering long-term relationships built on trust and reliability.

For its national reach, First Savings Financial Group, Inc. maintains two distinct lending programs: single-tenant net lease commercial real estate and SBA lending. The SBA Lending segment has proven its operational success, posting its third consecutive profitable quarter for the fiscal year ended September 30, 2025. Furthermore, the bank is actively supporting Small and Medium Businesses (SMBs) nationwide with financing needs ranging from $25,000 up to $5,000,000, leveraging a Fintech-First Model to streamline the application process.

The commitment to dedicated personnel is evident across its lending divisions. For mortgage services, First Savings Financial Group, Inc. promotes a Dedicated Mortgage Team to provide personalized service. In the SBA space, the Chief SBA Lending Officer is a named figure, John Handmaker, indicating a high level of executive focus on this relationship channel. The bank also ensures regulatory transparency by maintaining a public listing of its NMLS Registered Loan Originators, updated as of December 1, 2025, showing a structured approach to its lending personnel.

The high-touch, in-person service component is anchored by its physical footprint. As of the June 30, 2025 reporting period, First Savings Bank operated 16 banking center locations in southern Indiana, though the latest dividend announcement referenced fifteen depository branches within Southern Indiana as of December 1, 2025. This physical presence supports the relationship model, as banking professionals live and work in the communities they serve. This face-to-face option remains valued, with general 2025 statistics indicating that 71% of consumers still say in-person access is important.

Balancing the high-touch service is a suite of self-service digital options. First Savings Financial Group, Inc. offers PC Express® Internet Banking and a supplemental Mobile Banking service, providing 24/7 account access. Key digital capabilities include:

• View balances and transaction history.
• Transfer funds between accounts.
• Use Online Bill Pay and set up recurring payments.
• Make deposits remotely via Mobile Deposit.
• Set up mobile text alerts for low balance reminders.

This digital investment aligns with broader market trends where a significant majority of consumers, 77 percent in 2025 surveys, prefer managing accounts through a mobile app or computer, and 82% consider online banking important.

The scale of the customer base and its financial activity as of late 2025 provides context for these relationship efforts. As of June 30, 2025, First Savings Bank held total assets of $2.4 billion, total loans of $1.9 billion, and total deposits of $1.7 billion. Furthermore, customer deposits saw a significant increase of $118.2 million since September 2024, suggesting successful deposit gathering efforts across both relationship and digital channels.

Relationship Metric/Channel	Data Point	Date/Context
Depository Branch Locations	15 to 16	As of June 30, 2025 / December 1, 2025
National Lending Programs	Two (SBA and Single-Tenant Net Lease CRE)	As of FYE September 30, 2025
SMB/SBA Financing Range	$25,000 to $5,000,000	Business lending support
Total Customer Deposits	$1.7 billion	As of June 30, 2025
Deposit Growth	$118.2 million increase	Since September 2024 (FYE Sept 30, 2025)
Digital Banking Preference (Industry)	77 percent prefer mobile app or computer	2025 General Statistic
Importance of In-Person Access (Industry)	71% say in-person access is important	2025 General Statistic

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Channels

You're looking at how First Savings Financial Group, Inc. (FSFG) gets its value proposition-personalized community banking mixed with specialized lending-to its customers right before the planned merger with First Merchants Corporation. The Channels block here is a blend of traditional brick-and-mortar presence and targeted, non-local lending operations.

The core of the physical delivery network remains deeply rooted in its primary market. As of the third quarter of 2025, First Savings Financial Group, Inc. operated a physical network consisting of 16 banking centers, all situated in southern Indiana, with its headquarters in Jeffersonville, Indiana. This local footprint is key for deposit gathering and relationship-based consumer lending within that specific geographic area.

Complementing the physical locations is the necessary digital layer. First Savings Financial Group, Inc. supports its customer base with a digital banking platform, which includes both online and mobile access. This platform allows for standard functions like account management, fund transfers, and remote check deposits, helping to extend reach beyond the physical branch hours and locations. While the platform is described as robust, specific late-2025 metrics on digital adoption rates or transaction volume aren't publicly itemized in the latest reports.

The growth engine for First Savings Financial Group, Inc. is clearly its specialized lending, which uses a distinct channel strategy. The company maintains National Loan Production Offices (LPOs) for its two primary national lending programs: single-tenant net lease commercial real estate and SBA lending. These offices are located predominately in the Midwest, allowing First Savings Financial Group, Inc. to originate loans outside its core southern Indiana deposit market. This dual-channel approach-local deposits funding both local and national loans-is a defining feature of their strategy, especially given the strong performance of the SBA Lending segment, which contributed to a fiscal year 2025 net income of $23.2 million.

The direct sales force is intrinsically linked to these specialized lending channels. While the exact headcount isn't public, the success of the SBA Lending segment implies a dedicated direct sales force focused on originating these commercial and government-guaranteed loans. This sales effort is crucial for driving loan growth, which stood at $1.9 billion in total loans as of June 30, 2025, against total assets of $2.4 billion.

Here's a quick look at the scale of the operation feeding these channels as of the end of Q3 FY2025:

Channel/Metric Category	Specific Data Point	Value as of June 30, 2025
Physical Branch Network	Banking Centers in Southern Indiana	16
Lending Footprint	LPO Office Concentration	Predominately in the Midwest
Balance Sheet Context	Total Assets	$2.4 billion
Balance Sheet Context	Total Deposits	$1.7 billion
Performance Context	FY 2025 Net Interest Margin (Tax-Equivalent)	2.94%

The reliance on LPOs and a direct sales force for commercial business means that a significant portion of the loan origination channel operates remotely from the core branch network. This structure supports the reported tax-equivalent net interest margin enhancement to 2.94% for FY 2025, up from 2.68% the prior year. The channels are clearly segmented: local branches for core retail/deposit services, and specialized, geographically dispersed lending offices for higher-yield commercial products.

The digital platform serves as a necessary utility layer across both segments, helping to maintain operational efficiency, which is reflected in the surging net profit margin to 27.1% for the period, more than double the prior year's 12.7%. The effectiveness of these channels is what drove the FY 2025 diluted EPS to $3.32.

You should keep a close eye on how the integration with First Merchants Bank, expected in Q1 2026, will immediately alter this channel map, as the combined entity will have 127 branches across Indiana, Michigan, and Ohio.

Finance: draft the integration plan's impact on the current FSFG channel structure by next Tuesday.

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Customer Segments

Consumers and households in southern Indiana (Louisville MSA)

First Savings Financial Group, Inc. (FSFG) serves individuals and families primarily within its local market footprint.

• Headquarters location: Jeffersonville, Indiana, directly across the Ohio River from Louisville, Kentucky.
• Depository branch network: Operates fifteen depository branches within Southern Indiana.
• Primary residential mortgage origination area includes Clark, Floyd, Harrison, Crawford, Washington, and Daviess Counties in Indiana.

The scale of the institution serving this segment as of June 30, 2025, included total assets of $2.42 billion and total deposits of $1.7 billion.

Small to medium-sized businesses (SMBs) in the local market

First Savings Financial Group, Inc. emphasizes serving small businesses within its primary market area, focusing on relationship banking.

• Lending activities include commercial business loans.
• The core banking segment reported net income of $17.2 million for the nine months ended June 30, 2025.

National clients seeking SBA loans and single-tenant net lease financing

First Savings Financial Group, Inc. maintains two national lending programs targeting specific non-local clients.

• National lending programs: Single-tenant net lease commercial real estate and SBA lending.
• SBA Lending segment posted its third consecutive profitable quarter for the fiscal year ended September 30, 2025.
• Net gain on sale of SBA loans increased by $1.2 million for the fiscal year ended September 30, 2025.
• Net recoveries related to unguaranteed portions of SBA loans totaled $164,000 for the six months ended March 31, 2025.

Real estate investors and developers (residential and commercial)

This segment is served through significant concentrations in real estate-backed lending.

Here's a quick look at the loan portfolio composition as a proxy for this segment focus, based on data from September 30, 2024:

Loan Category	Percentage of Total Loans (as of 9/30/2024)
Commercial Real Estate Loans	51.0%
Residential Mortgage Loans (primarily one- to four-family)	33.8%

The bank also originates residential and commercial construction loans, and land and land development loans.

• Net gain on sales of home equity lines of credit (HELOC) was $4.0 million for the fiscal year ended September 30, 2025.
• Approximately $87.2 million of HELOCs were sold in a bulk sale during the six months ended March 31, 2025.

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Cost Structure

The Cost Structure for First Savings Financial Group, Inc. (FSFG) in late 2025 is heavily influenced by funding costs, strategic restructuring, and the ongoing operational footprint.

Significant interest expense on deposits and borrowings remains a core cost driver, though management has shown success in moderating it recently. For the three months ended September 30, 2025, interest expense decreased by $2.0 million compared to the same period in 2024, contributing to a net interest income increase. However, for the six months ended March 31, 2025, interest expense had increased by $1.6 million year-over-year, showing the volatility in funding costs across the fiscal year.

Personnel costs reflected the strategic shift away from the national mortgage banking operation. In the first fiscal quarter of 2025 (Q1 FY2025, period ended December 31, 2024), noninterest expense fell by $1.10 million year-over-year, which included a lower compensation expense of -$487k. To be fair, compensation and benefits did show an increase of +$0.94 million year-over-year for the second fiscal quarter ended March 31, 2025, primarily due to higher bonus and incentive accruals in that later period.

The cost to maintain the physical and digital presence is a fixed component of the structure. This covers Occupancy and technology expenses for 16 branches and digital channels. In Q1 FY2025, occupancy expense saw a year-over-year decrease of $405k following the mortgage exit. For the six months ended March 31, 2025, occupancy and equipment expenses decreased by $380,000 compared to the prior year period.

The financial reporting for the year ended September 30, 2025, explicitly excluded certain one-time charges, highlighting the impact of merger-related expenses impacting FY2025 net income. Net income for the year was reported both on a GAAP basis and a non-GAAP basis, which excluded expenses related to the announced and pending merger with First Merchants Corporation.

The cost associated with managing credit risk is itemized, including the Provision for credit losses, which was $452,000 for unfunded commitments in FY2025. This was the provision recognized for the entire year ended September 30, 2025. This compares to a reversal of provision for unfunded lending commitments of $421,000 for the same period in 2024.

Here's a quick look at some of the reported year-over-year noninterest expense changes from Q1 FY2025:

Expense Category	Q1 FY2025 YoY Change
Total Noninterest Expense	Decreased by $1.10 million
Compensation	Lower by $487,000
Occupancy	Lower by $405,000
Professional Fees	Lower by $385,000

The operational efficiency is also measured by the efficiency ratio. For Q1 FY2025, the efficiency ratio improved to 69.29% from 94.93% year-over-year, showing better cost control relative to core banking revenue.

You should note the following key components that make up the cost base:

• Interest expense on deposits and borrowings.
• Personnel costs, with recent reductions following the mortgage exit.
• Fixed costs for 16 physical branches and digital infrastructure.
• Provisions for credit losses, including $452,000 for unfunded commitments in FY2025.
• Non-recurring merger-related expenses excluded from core earnings metrics.

First Savings Financial Group, Inc. (FSFG) - Canvas Business Model: Revenue Streams

You're looking at how First Savings Financial Group, Inc. (FSFG) brings in the money, which is heavily weighted toward traditional banking activities but is strategically shifting to boost noninterest income. The revenue picture for fiscal year 2025 (FY2025), which ended September 30, 2025, shows a clear focus on core lending profitability alongside new fee-based income initiatives.

The primary driver remains the spread between what First Savings Financial Group, Inc. (FSFG) earns on its assets and what it pays for its liabilities. Net Interest Income (NII) from its loan and investment portfolios totaled $65.3 million for the year ended September 30, 2025. This was a significant increase, rising 12.5% compared to the same period in 2024, driven by a $5.5 million increase in interest income and a $1.7 million decrease in interest expense. Honestly, that margin expansion is what's really moving the needle on core earnings power.

The strategic pivot in 2025 involved enhancing Noninterest income from loan sales, specifically by transitioning the first-lien Home Equity Line of Credit (HELOC) business to an originate-for-sale model. This is a deliberate move to enhance noninterest income and free up capital. The execution of this strategy was immediately visible in the first quarter of FY2025, where a bulk sale of first-lien HELOCs generated a net gain of $2.49 million for the quarter ended December 31, 2024.

For the full fiscal year 2025, total noninterest income increased by $6.3 million compared to the prior year, reflecting the success of these sales initiatives and fee growth. This total noninterest income is composed of several key elements:

• Net gain on sales of HELOC in 2025: $4.0 million.
• Increase in net gain on sale of SBA loans: $1.2 million.
• Increase in ATM and interchange fees: $374,000.
• Increase in service charges on deposits: $277,000.

The revenue streams from fees and charges are also a component of this noninterest income. While the specific total for loan origination and servicing fees isn't isolated, the growth in net gain on sales of SBA loans ($1.2 million increase for FY2025) suggests ongoing activity in that area. Similarly, service charges and fees on deposit accounts contributed an increase of $277,000 to the full-year noninterest income.

Here's a quick look at how the key components of noninterest income contributed to the overall increase for the full fiscal year 2025:

Revenue Component	FY2025 Year-over-Year Increase Amount
Net Gain on Sales of HELOC	$4.0 million
Increase in Net Gain on Sale of SBA Loans	$1.2 million
Increase in ATM and Interchange Fees	$374,000
Increase in Service Charges on Deposits	$277,000

To be fair, the Q1 FY2025 results showed a slightly different mix for the quarter's growth, with a $929,000 net gain on HELOC sales and an $853,000 net gain on SBA loan sales contributing to the quarterly noninterest income increase of $1.8 million. The full-year data, however, gives you the better picture of the year's total revenue generation from these activities.

Finance: draft 13-week cash view by Friday.