Exploring First Savings Financial Group, Inc. (FSFG) Investor Profile: Who’s Buying and Why?

You're looking at First Savings Financial Group, Inc. (FSFG) and wondering why the smart money is moving in, especially when regional banks still face structural headwinds-honestly, the answer is simple: a massive earnings turnaround and a clear acquisition signal.

In the fiscal year ending September 30, 2025, FSFG delivered a net income of $23.2 million, which translates to a stunning $3.32 per diluted share, up from $1.98 in the prior year, so the performance is undeniable. This strength has attracted major institutional players, with firms like BlackRock, Inc. and The Vanguard Group, Inc. holding significant stakes among the 147 institutional owners who control over 2.66 million shares. This isn't just a small-cap value play; it's a bet on superior execution, evidenced by the net interest margin (NIM) improving to 2.94%, plus the announced and pending merger with First Merchants Corporation has put a floor under the valuation, trading around $29.76 per share as of early November 2025.

Do you know who's buying now, and are they chasing the momentum or positioning for the merger premium?

Who Invests in First Savings Financial Group, Inc. (FSFG) and Why?

The investor profile for First Savings Financial Group, Inc. (FSFG) is a clear mix, dominated by institutional money seeking a deep-value regional bank with a strong dividend, but a significant portion of shares are still held by retail investors and insiders who appreciate the local focus and recent turnaround story.

The core attraction is a compelling blend of income and a value proposition: an annual dividend of $0.64 per share in 2025, paired with a low price-to-earnings (P/E) ratio of 9.5x that suggests the market hasn't fully priced in the recent operational gains.

The Institutional vs. Retail Ownership Split

When you look at FSFG's capitalization, the first thing that jumps out is the heavy presence of institutional investors-the big funds, asset managers, and banks. As of late 2025, there are approximately 147 institutional owners who collectively hold around 2,661,350 shares.

Here's the quick math: with about 6.98 million shares outstanding, this institutional ownership translates to roughly 38.1% of the company. That leaves the remaining 61.9% in the hands of retail investors, company insiders, and smaller funds. This is a higher retail/insider share than you see in many large-cap stocks, which is defintely typical for a regional bank.

The top institutional holders include giants like Vanguard Group, Inc. and BlackRock, Inc., alongside specialized players like TCW Group, Inc., which held 391,911 shares, or 5.70%, as of September 2025. These are passive index funds and active managers betting on the regional banking sector's stability and FSFG's specific value.

• Vanguard and BlackRock: Index-tracking funds, buying FSFG because it's in the Russell 2000 ETF.
• FJ Capital Management LLC: Active managers likely focused on the deep-value play.
• First Savings Bank Profit Sharing/401(k) Plan: A large internal holder, showing strong employee alignment.

Core Investment Motivations: Income and Value

Investors are drawn to First Savings Financial Group, Inc. for two main reasons: reliable income and a clear valuation discount. The company's annual dividend of $0.64 per share translates to a dividend yield of approximately 2.14%, based on the November 2025 stock price.

This dividend is well-covered by earnings, with a conservative payout ratio of just 18.98%. That low ratio is a huge green flag for income investors, suggesting the dividend is safe and has room to grow, which it has, increasing over the last 10 years. Plus, the company's focus on core banking in Southern Indiana and national Small Business Administration (SBA) lending provides a niche stability that appeals to conservative portfolios.

The value argument is just as strong. FSFG's price-to-earnings ratio of 9.5x is significantly lower than the peer average of 17.7x, as of late 2025. This discount suggests the stock is undervalued, even though its net profit margin surged to 27.1% in the last twelve months, which is more than double the prior year's 12.7%. This margin surge is a powerful signal of operational efficiency, but the market is still skeptical, creating an opportunity for value buyers.

The Playbook: Strategies for FSFG Investors

The strategies employed by FSFG's diverse investor base are generally long-term and value-focused, reflecting the nature of the regional banking industry.

Value Investing: This is the dominant strategy. Investors like FJ Capital Management are buying FSFG because the stock is trading at a discount to its intrinsic value, evidenced by the low P/E ratio and a share price of around $29.82 that is still below some analysts' one-year target of $32.50. They are betting that the recent 1-year earnings per share (EPS) growth of 135.1% is the start of a sustained turnaround that will close the valuation gap.

Long-Term Holding for Income: Many investors, particularly the retail base and dividend-focused mutual funds, are simply holding the stock for the income stream. The low payout ratio and history of dividend increases make FSFG a classic 'sleep-well-at-night' stock for a portion of a portfolio. You can learn more about the underlying financial resilience in Breaking Down First Savings Financial Group, Inc. (FSFG) Financial Health: Key Insights for Investors.

The Turnaround Play: This strategy is for the more aggressive value investor. While the 1-year EPS growth is stellar, the 5-year trend shows an annual earnings decline of 28.3%. The turnaround play is a bet that the recent strong performance-net income of $5.5 million in the second fiscal quarter of 2025-can overcome that long-term headwind. They are buying into the narrative that management has successfully navigated the challenging interest rate environment and operational issues.

Here is a quick summary of the key financial data driving these investment strategies:

The next concrete step for any current or prospective investor is to review the upcoming Q3 2025 earnings report to confirm the continuation of the positive net interest margin trend, which was 2.93% in Q2 2025. Finance: Confirm the Q3 2025 earnings release date and key focus areas for the analyst call.

Institutional Ownership and Major Shareholders of First Savings Financial Group, Inc. (FSFG)

You're looking at First Savings Financial Group, Inc. (FSFG) and want to know who the big players are and why they're buying. The direct takeaway is that institutional investors hold a significant stake-around 32.20% to 35.22%-and their recent activity has been net-positive, but the entire investment thesis is now centered on the pending merger with First Merchants Corporation, announced in late 2025.

As a seasoned financial analyst, I see a regional bank like FSFG as a classic case where institutional holders provide a critical floor of stability, especially during a major corporate action like an acquisition. They hold a total of 2,661,350 shares as of recent filings. That's a lot of conviction in a regional bank.

The Largest Institutional Investors and Their Stakes

The institutional ownership landscape for First Savings Financial Group, Inc. is dominated by a mix of large index funds and specialized financial services investors. These top holders are mostly passive funds or dedicated small-cap managers, which means they are buying FSFG to track a specific market index or because they see intrinsic value in the regional banking sector.

Here's a quick look at the top institutional holders and their reported positions, with data as recent as late Q3 2025:

• TCW Group, Inc.: Holds the largest reported stake at 5.70%, accounting for 391,911 shares as of September 29, 2025.
• The Vanguard Group, Inc.: A major passive player, holding approximately 4.11% of outstanding shares, or 282,276 shares.
• BlackRock, Inc.: Another index fund giant, with a 3.93% stake, equating to 269,853 shares.
• FJ Capital Management LLC: A dedicated financial sector investor, which had 282,864 shares in June 2025, but quickly increased that.
• AllianceBernstein L.P.: Holds a notable position of 2.73%, or 187,373 shares.

To be fair, the largest single shareholder is actually an insider, CEO Larry W. Myers, who owns 10.82% of the company, but institutional money is still the collective force.

Recent Shifts: Are Investors Accumulating or Selling?

The trend is clear: institutional investors have been net buyers of First Savings Financial Group, Inc. stock throughout 2025, despite the challenges the company faced with negative revenue and earnings growth in the preceding years. Overall, institutional ownership showed an increase of 9.73% over a recent period.

This accumulation signals confidence, defintely in the face of a pending acquisition. Here's the quick math on recent buying:

• FJ Capital Management LLC increased its position by 8.48% on September 30, 2025, acquiring an additional 23,997 shares at a price of $31.43 per share.
• Connor Clark & Lunn Investment Management Ltd. boosted its stake by a substantial 22.2% in Q1 2025.
• Goldman Sachs Group Inc. also lifted its position by 18.0% in Q1 2025.
• Los Angeles Capital Management LLC opened a new position in Q2 2025, buying 14,840 shares.

The net buying activity suggests these professional investors were either betting on a turnaround from the strategic shift-exiting the mortgage banking business to focus on core banking and deposit growth-or, more likely, they were anticipating a sale of the company. The latter proved correct.

The Impact of Institutional Ownership on Stock Price and Strategy

Institutional investors play a massive role in First Savings Financial Group, Inc.'s current stock price and strategic direction, which is now almost entirely focused on the merger with First Merchants Corporation. The deal, announced on September 24, 2025, stipulates that FSFG shareholders will receive 0.85 of a share of First Merchants common stock for each FSFG share they own.

What this estimate hides is the risk of the deal falling through, but institutional investors' continued accumulation helps keep the stock price anchored near the implied deal value (the arbitrage spread). Their large holdings mean they have the voting power to approve the merger, which is a key closing condition.

The role of these investors is now two-fold:

• Price Support: Their buying activity helps maintain the stock price around the acquisition value, reducing volatility.
• Strategic Oversight: Their concentration of shares gives them a loud voice. This is evident in the ongoing investigation by a law firm, which is scrutinizing the deal to ensure the 0.85 share exchange adequately reflects the company's value and does not undervalue it. This kind of scrutiny is often driven by the interests of large shareholders.

You can read more about the company's background and strategic shifts in First Savings Financial Group, Inc. (FSFG): History, Ownership, Mission, How It Works & Makes Money. Anyway, the near-term action for any FSFG shareholder is to monitor the merger's regulatory approval process and the outcome of the undervaluation investigation.

Key Investors and Their Impact on First Savings Financial Group, Inc. (FSFG)

You're looking at First Savings Financial Group, Inc. (FSFG) right now because of the proposed sale to First Merchants Corporation, and you want to know who the major shareholders are who will defintely drive or derail this deal. The direct takeaway is that while the institutional players like BlackRock, Inc. and The Vanguard Group, Inc. own a significant chunk, the company's direction is heavily influenced by a massive insider stake, and that dynamic is now at the center of a shareholder investigation over the merger price.

In short, the investor base is a mix of passive index funds, specialized bank-focused investment firms, and a powerful group of insiders, all of whom have a vested interest in the $241.3 million all-stock transaction announced in September 2025.

The Institutional Heavyweights: Passive vs. Active

As of the most recent filings in late 2025, institutional investors (large funds, pension plans, and endowments) collectively own approximately 32.20% of First Savings Financial Group, Inc. This is a decent chunk, but not enough to dominate the board on its own. The largest holders include the usual suspects in passive investing, alongside a few specialized financial sector funds.

For instance, The Vanguard Group, Inc. holds about 4.11% of outstanding shares, and BlackRock, Inc. holds roughly 3.93%. These are typically passive holdings via index funds (like the Russell 2000 ETF, which First Savings Financial Group, Inc. was projected to be added to in mid-2025), meaning they rarely push for operational change. They just track the market. The more active influence comes from funds like TCW Group, Inc., which is the largest single institutional holder with a 5.70% stake, and FJ Capital Management, LLC, holding 4.11%. These specialized bank investors are the ones you need to watch; they are sophisticated and will scrutinize the merger terms closely.

Here is a quick look at the top institutional positions as of the September 2025 reporting period:

Insider Control and the Merger Valuation Question

What truly sets the investor profile apart is the high level of insider ownership, which stands at a substantial 25.65% of the company. This is a massive block of shares, and it means management and directors have a huge say in any major corporate action, including the pending merger. The CEO, Larry W. Myers, is the largest single shareholder, owning 754,783 shares, representing 10.82% of the company, valued around $22.58 million. That's a powerful voting bloc.

This insider control is exactly why the recent merger announcement has triggered an investigation by firms like Kahn Swick & Foti, LLC. The core issue is whether the proposed exchange of 0.85 of a First Merchants common stock share for every First Savings Financial Group, Inc. share is a fair price. When a company reports a net profit margin surge to 27.1% for the fiscal year ended September 30, 2025, and a diluted earnings per share (EPS) of $3.32 (a huge jump from $1.98 in FY 2024), shareholders start asking if the management-approved sale is undervaluing that performance. This is where the insider influence transitions into a governance risk for the acquirer.

You can read more about the company's background and business model here: First Savings Financial Group, Inc. (FSFG): History, Ownership, Mission, How It Works & Makes Money.

Near-Term Action: Monitoring Merger Scrutiny

The most important recent move isn't a simple buy or sell order; it's the formal legal scrutiny of the merger. The investigation into the proposed sale is a clear signal of potential activist sentiment, even if it's coming through a legal channel rather than a proxy fight. The investors who are questioning the deal are betting that the company's recent financial strength-like the $83.83 million in revenue for FY 2025-warrants a higher valuation than the $241.3 million offer.

• Watch for news on the investigation's findings.
• Monitor proxy filings for any dissenting shareholder votes.
• Check if active institutional funds increase their stakes.

What this estimate hides is the potential for a protracted legal battle, which could delay the closing past the expected 2026 timeline and introduce uncertainty. So, your next concrete step is to monitor the SEC filings (specifically the proxy statement) for any updates on the Kahn Swick & Foti, LLC investigation, and use the $3.32 FY 2025 EPS as your benchmark for the company's standalone value. Owner: Investor/Analyst.

Market Impact and Investor Sentiment

You're looking at First Savings Financial Group, Inc. (FSFG) right now and seeing a mixed picture, and honestly, that's exactly what the data shows. The investor sentiment is a study in contrasts: Wall Street analysts are largely bullish, but a significant portion of the shareholder base is actively skeptical, especially about the proposed sale of the company.

The consensus among four Wall Street analysts is a clear Mission Statement, Vision, & Core Values of First Savings Financial Group, Inc. (FSFG). Buy rating, with some firms even issuing a Strong Buy. This optimism is grounded in the company's recent financial performance; for the fiscal year ended September 30, 2025, First Savings Financial Group, Inc. reported revenue of $83.83 million, a solid increase of 23.11% year-over-year, and earnings of $23.16 million, a 70.40% jump. That's a strong fundamental picture.

But here's the rub: a major near-term risk is the ongoing shareholder scrutiny of the proposed acquisition by First Merchants Corporation. Multiple investor rights law firms have launched investigations into whether the deal, which offers 0.85 of a First Merchants common share for each First Savings Financial Group, Inc. share, adequately values the company. This legal noise is a real headwind, suggesting a segment of the market believes the board failed to get the best possible price. Shareholders are defintely pushing back on the valuation.

Who's Buying: The Institutional Investor Profile

The investor base for First Savings Financial Group, Inc. is dominated by institutional money-firms that manage large pools of capital like pension funds and mutual funds. These large holders own approximately 32.20% of the company, and their buying and selling moves are what drive the stock's long-term stability and liquidity.

The top institutional holders are the usual suspects, the titans of the asset management world, and their continued presence signals a belief in the underlying value of the regional bank model, even with the merger overhang. For example, as of the second and third quarters of 2025, TCW Group, Inc., The Vanguard Group, Inc., and BlackRock, Inc. were among the largest institutional shareholders.

Here's the quick math on one major player: BlackRock, Inc. held 269,853 shares, representing 3.93% of the company's total shares outstanding as of June 29, 2025, with a reported value of approximately $8.07 million. When a firm of that size maintains a position, it's a strong vote of confidence in the long-term viability of the asset, merger or not.

• TCW Group, Inc.: Largest institutional holder, with a 5.70% stake.
• The Vanguard Group, Inc.: Held 4.11% of shares as of June 29, 2025.
• BlackRock, Inc.: Maintained a 3.93% position in the company.

Recent Market Reactions and Merger Scrutiny

The most significant market reaction this year stems from the proposed sale. The implied consideration for the deal was $33.60 per share, calculated based on First Merchants' closing price of $39.53 on September 24, 2025. This is the number that has become the flashpoint for shareholder discontent.

Why the fuss? Because the average analyst price target is in the same ballpark, around $32.33 to $31.50. The margin between the analyst-projected value and the merger price is too thin for some investors. This suggests the merger price may not fully capture the premium for control (the acquisition price should be higher than the trading price) or the full value of the company's recent earnings growth.

The market is clearly factoring in the deal, but the legal investigations are a risk to the timeline, not necessarily the deal's eventual completion. What this estimate hides is the potential for a small bump in the offer price if the shareholder investigations gain traction, or a slight dip if the deal is delayed. The stock's performance is now less about core banking and more about merger arbitrage (the difference between the current stock price and the implied deal price).

Analyst Price Targets and Future Outlook

The analyst community remains positive on the stock's pre-merger intrinsic value. They see a modest upside from the recent trading price of around $29.15 per share. The average 12-month price target is $32.33, representing a forecasted upside of 10.92%.

Their outlook is supported by the company's focus on its core banking segment and its exit from the mortgage banking business, which was highlighted at the 2025 Annual Meeting of Shareholders. This strategic shift is expected to enhance capital accretion. Analysts project First Savings Financial Group, Inc. to earn $2.95 per share for the fiscal year ending September 2025, a figure that has been steadily increasing over the past three months, which is a key driver for institutional buying.

The table below summarizes the analyst consensus, which is a good baseline for your own valuation work.

Your next step should be to model the risk-adjusted return of the merger-compare the guaranteed deal price against the potential for an increased offer or the risk of the deal falling apart. Finance: run a scenario analysis on the merger outcome by the end of the week.