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MIL-OSI: Silvaco Announces Date of Second Quarter 2025 Financial Results Conference Call

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., July 23, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO, “Silvaco”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, will release its financial results for the second quarter ended June 30, 2025, after the market close on Wednesday, August 6, 2025. The company will host a conference call at 5:00 p.m. Eastern time to discuss its second quarter 2025 results and full year 2025 outlook.

A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

Date: Wednesday, August 6, 2025
Time: 5:00 p.m. Eastern time
Webcast: Here (live and replay)

About Silvaco
Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and AI through software and innovation. Silvaco’s solutions are used for process and device development across display, power devices, automotive, memory, high-performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

Safe Harbor Statement
This press release contains forward-looking statements based on Silvaco Group, Inc.’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco Group, Inc. are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco Group, Inc. and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

Investor Contact:
Greg McNiff
investors@silvaco.com

Media Contact:
Tiffany Behany
press@silvaco.com

The MIL Network –

July 24, 2025

MIL-OSI: Northrim BanCorp Earns $11.8 Million, or $2.09 Per Diluted Share, in Second Quarter 2025

Source: GlobeNewswire (MIL-OSI)

ANCHORAGE, Alaska, July 23, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $11.8 million, or $2.09 per diluted share, in the second quarter of 2025, compared to $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, and $9.0 million, or $1.62 per diluted share, in the second quarter a year ago. The increase in second quarter 2025 profitability as compared to the second quarter a year ago was primarily the result of an increase in net interest income, higher purchased receivable income, and increased mortgage banking income, which were partially offset by a higher provision for credit losses, higher other operating expenses, and a higher provision for income taxes. Net interest income increased primarily due to higher loan balances and higher yields on earning assets. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom.

Dividends per share in the second quarter of 2025 remained consistent with the first quarter of 2025 at $0.64 per share as compared to $0.61 per share in the second quarter of 2024.

“Strong loan growth, increasing asset yields, and stable funding costs drove record net interest income in the second quarter of this year,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We continue to attract new customers to Northrim and believe we have an opportunity to steadily increase our market share over the next few years.”

Second Quarter 2025 Highlights:

Net interest income in the second quarter of 2025 increased 7% to $33.6 million compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.
Net interest margin on a tax equivalent basis (“NIMTE”)^* was 4.72% for the second quarter of 2025, up 11-basis points from the first quarter of 2025 and up 42-basis points from the second quarter a year ago.
Return on average assets (“ROAA”) was 1.48% and return on average equity (“ROAE”) was 16.37% for the second quarter of 2025 compared to ROAA of 1.76 and ROAE of 19.70 in the prior quarter and ROAA of 1.31% and ROAE of 14.84% for the second quarter of 2024.
Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”). The Company sold $61 million in consumer mortgages in the second quarter of 2025 that were included in loans held for investment as of the end of 2024 to reduce the concentration of residential real estate loans and to provide additional liquidity for future commercial and construction loan growth.
Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter, and up 14% from $2.46 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 10% year-over-year to $777.9 million at June 30, 2025 and represent 28% of total deposits.
The average cost of interest-bearing deposits was 2.04% at June 30, 2025, up slightly from 2.01% at March 31, 2025 and down from 2.21% at June 30, 2024.
Mortgage loan originations were $277.1 million in the second quarter of 2025, up from $121.6 million in the first quarter of 2025 and up from $181.5 million in the second quarter a year ago. Mortgage loans funded for sale were $249.7 million in the second quarter of 2025, compared to $108.5 million in the first quarter of 2025 and $152.3 million in the second quarter of 2024.

Financial Highlights	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Total assets	$	3,243,760		$	3,140,960		$	3,041,869		$	2,963,392		$	2,821,668
Total portfolio loans	$	2,202,115		$	2,124,330		$	2,129,263		$	2,007,565		$	1,875,907
Total deposits	$	2,809,170		$	2,777,977		$	2,680,189		$	2,625,567		$	2,463,806
Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Net income	$	11,778		$	13,324		$	10,927		$	8,825		$	9,020
Diluted earnings per share	$	2.09		$	2.38		$	1.95		$	1.57		$	1.62
Return on average assets		1.48	%		1.76	%		1.43	%		1.22	%		1.31	%
Return on average shareholders’ equity		16.37	%		19.70	%		16.32	%		13.69	%		14.84	%
NIM		4.66	%		4.55	%		4.41	%		4.29	%		4.24	%
NIMTE^*		4.72	%		4.61	%		4.47	%		4.35	%		4.30	%
Efficiency ratio		64.68	%		63.54	%		66.96	%		66.11	%		68.78	%
Total shareholders’ equity/total assets		8.95	%		8.91	%		8.78	%		8.78	%		8.76	%
Tangible common equity/tangible assets^*		7.50	%		7.41	%		7.23	%		8.28	%		8.24	%
Book value per share	$	52.55		$	50.67		$	48.41		$	47.27		$	44.93
Tangible book value per share^*	$	43.35		$	41.47		$	39.17		$	44.36		$	42.03
Dividends per share	$	0.64		$	0.64		$	0.62		$	0.62		$	0.61
Common stock outstanding		5,522,271			5,520,892			5,518,210			5,501,943			5,501,562

^* References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

Alaska Economic Update
(Note: sources for information included in this section are included on page 14.)

The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in May of 2025 was 4.7% compared to the U.S. rate of 4.2%. The rate has held steady in Alaska at 4.7% for eight consecutive months. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.1% or 3,800 jobs between May of 2024 and May of 2025.

According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 8.8% through May of this year compared to the prior year, up 700 direct jobs. The Construction sector added 700 positions for a year-over-year growth rate of 3.7% through May of 2025. The larger Health Care sector grew by 1,200 jobs for an annual growth rate of 2.9%. Transportation, Warehousing and Utilities added 600 jobs for a 2.3% growth rate over the same period. Professional and Business Services increased 500 jobs year-over-year through May of 2025, up 1.7%.

The Government sector grew by 200 jobs for 0.2% growth, adding 400 State positions while losing 200 Federal jobs in Alaska over the same period. Declining sectors between May 2024 and May 2025 were Information down 100 jobs or (-2.3%), Manufacturing (primarily seafood processing) shrinking 200 positions (-2.1%), Wholesale Trade lost 100 jobs (-1.5%) and Financial Activities, down 100 jobs (-0.9%).

Alaska’s seasonally adjusted personal income was $57.4 billion in the first quarter of 2025 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the first quarter of 6.4% for Alaska, compared to the national average of 6.7%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6^th best in the nation. The $885 million increase in personal income in the first quarter of 2025 in Alaska came from a $352 million increase in net earnings from wages, $440 million growth in government transfer receipts, and a $92 million increase in investment income.

Alaska’s Gross State Product (“GSP”) in the first quarter of 2025 reached $72 billion according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and decreased -1.8% annualized in the first quarter of 2025. The average U.S. GDP growth rate was 2.8% for 2025 and -0.5% in the first quarter of 2025. Alaska’s real GSP decrease in the first quarter of 2025 was primarily caused by a decrease in the Mining, Oil & Gas sector, somewhat offset by improvements in the Construction sector.

Alaska exported $5.9 billion in goods to foreign countries in 2024 according to the U.S. International Trade Administration. China is the largest importer of Alaska’s products at $1.5 billion, followed by Australia at $804 million, Japan at $674 million and South Korea at $634 million in 2024. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores at $2 billion, and primary metals at $992 million in 2024. Oil & Gas exports are $380 million because the majority of Alaska’s production is refined and consumed in the United States. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run. Alaska’s Legislature just passed a bill HJR-11 with an approval vote of 33-4 titled, Recognizing and honoring the relationship between Canada and Alaska. It highlights the deeply interconnected friendship between Alaska and Canada culturally, economically, and militarily.”

According to the US Bureau of Labor Statistics, the Consumer Price Index (“CPI”) for the U.S. increased 2.7% between June of 2024 and June of 2025. In Alaska, the rate of CPI increase was lower at 1.6% for the same time period. Food and beverage, housing costs, and medical care costs were the largest causes for inflation. Declining motor fuel prices, transportation, recreation and household furnishing costs have helped moderate inflationary pressures in Alaska.

The monthly average price of Alaska North Slope (“ANS”) crude oil has ranged between $76.39 a barrel in January of 2025 and $67.07 in May of the prior year. The June 2025 average was $72.62. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024. Production rose to 469 thousand bpd in fiscal year ending June 30, 2025. In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is developing the large new Willow field. There are also a number of smaller new fields in the ANS that are contributing to the State of Alaska’s production growth estimates.

The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of May 31, 2025 the fund’s value was $83.13 billion. According to the DOR it is scheduled to contribute $3.7 billion to Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents.

According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,064, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases. Through June of 2025 prices have continued to increase on average 2.6% to $523,059.

The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. Through June of 2025 prices have continued to increase on average 6.9% to $441,463. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. The first six months of 2025 has seen a 4.8% increase in home sales compared to the first half of 2024 in Anchorage.

There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or -0.2%. In the first six months of 2025 the number of units sold has increased 13.1% in the Matanuska Susitna Borough compared to the first half of 2024.

Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

Review of Income Statement

Consolidated Income Statement

In the second quarter of 2025, Northrim generated a ROAA of 1.48% and a ROAE of 16.37%, compared to 1.76% and 19.70%, respectively, in the first quarter of 2025 and 1.31% and 14.84%, respectively, in the second quarter a year ago.

Net Interest Income/Net Interest Margin

Net interest income increased 7% to $33.6 million in the first quarter of 2025 compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024. Interest expense on deposits increased to $10.3 million in the second quarter of 2025 compared to $9.9 million in the first quarter of 2025 and compared to $9.5 million in the second quarter of 2024.

NIMTE^* was 4.72% in the second quarter of 2025 up from 4.61% in the preceding quarter and 4.30% in the second quarter a year ago. NIMTE^* increased 42 basis points in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher yields on those assets as variable rate loans reset at higher rates which were only partially offset by an increase in borrowings. The weighted average interest rate for new loans booked in the second quarter of 2025 was 7.27% compared to 7.30% in the first quarter of 2025 and 7.90% in the second quarter a year ago. The yield on the investment portfolio in the second quarter of 2025 increased to 3.07% from 2.97% in the first quarter of 2025 and 2.82% in the second quarter of 2024. “We are continuing to see some benefits from the repricing of our loan portfolio and new production increasing our margin” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE^* continues to remain above the peer average of 3.26% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of March 31, 2025.

Provision for Credit Losses

Northrim recorded a provision for credit losses of $2.0 million in the second quarter of 2025, which was comprised of a provision for credit losses on loans of $1.8 million, a $157,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $18,000. This compares to a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. In the second quarter a year ago, Northrim recorded a benefit to the provision for credit losses of $120,000 which was comprised of a $134,000 provision for credit losses on loans and a $254,000 benefit to the provision for credit losses on unfunded commitments.

The increase to the provision for credit losses on loans in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. The increase to the provision for unfunded commitments in the second quarter of 2025 was primarily due to an increase in estimated loss rates which was only partially offset by changes in mix of unfunded commitments.

Nonperforming assets, net of government guarantees, decreased during the quarter to $11.9 million at June 30, 2025, compared to $12.3 million at March 31, 2025, and increased compared to $5.1 million at June 30, 2024. The increase in nonperforming assets, net of government guarantees at June 30, 2025 compared to June 30, 2024 is primarily the result of the acquisition of Sallyport in the fourth quarter of 2024.

The allowance for credit losses on loans was 290% of nonperforming loans, net of government guarantees, at the end of the second quarter of 2025, compared to 262% three months earlier and 365% a year ago.

Other Operating Income

In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $16.6 million, or 33% of total second quarter 2025 revenues, as compared to $13.0 million, or 29% of revenues in the first quarter of 2025, and $9.6 million, or 26% of revenues in the second quarter of 2024. The increase in other operating income in the second quarter of 2025 as compared to the second quarter of 2024 was primarily the result of increased purchased receivable income due to the Company’s acquisition of Sallyport on October 31, 2024. Mortgage banking income in the second quarter of 2025 increased as compared to the first quarter of 2025 and second quarter of 2024 due to a higher volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below.

Other Operating Expenses

Operating expenses were $32.5 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025, and $25.2 million in the second quarter of 2024. The increase in other operating expenses in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to an increase in salaries and other personnel expense, including $980,000 in higher mortgage commissions expense due to higher mortgage volume, $763,000 in higher salary expense, a $760,000 increase in group medical expenses, and increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions. The increase in total other operating expenses in the second quarter of 2025 compared to the second quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, and an increase in data processing expense. Total other operating expense increased $2.1 million in the Specialty Finance segment in the second quarter of 2025 compared to the second quarter of 2024 due to the acquisition of Sallyport on October 31, 2024.

Income Tax Provision

In the second quarter of 2025, Northrim recorded $4.0 million in state and federal income tax expense for an effective tax rate of 25.3%, compared to $4.3 million, or 24.2% in the first quarter of 2025 and $2.5 million, or 21.9% in the second quarter a year ago. The increase in the tax rate in the second quarter of 2025 as compared to the first quarter of 2025 and second quarter of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024.

Community Banking

Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

Net interest income in the Community Banking segment totaled $30.0 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025 and $24.3 million in the second quarter of 2024. Net interest income increased $5.7 million or 23% in the second quarter of 2025 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by lower interest income on investments and higher interest expense on deposits and borrowings.

The provision for credit losses in the Community Banking segment was $1.3 million in the second quarter of 2025 compared to a benefit to the provision for credit losses of $1.8 million in the first quarter of 2025 and a benefit to the provision for credit losses of $184,000 in the same quarter a year ago. The increase to the provision for credit losses in the Community Banking segment in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. In the first quarter of 2025, the Company recorded a net benefit for credit losses in the Community Banking segment primarily due to changes in the Company’s loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management’s assessment of economic conditions and an increase for higher loan balances.

Other operating expenses in the Community Banking segment totaled $21.8 million in the second quarter of 2025, up $3.2 million or 17% from $18.6 million in the first quarter of 2025, and up $3.7 million or 20% from $18.1 million in the second quarter a year ago. The increase in the second quarter of 2025 as compared to the prior quarter and compared to the same quarter a year ago was primarily due to increases in salaries and other personnel expense, including $667,000 in higher salary expense, an $873,000 increase in group medical expenses, as well as increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions.

The following tables provide highlights of the Community Banking segment of Northrim:

	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025		March 31, 2025			December 31, 2024		September 30, 2024		June 30, 2024
Net interest income	$	29,971	$	28,151		$	27,643	$	25,928	$	24,318
(Benefit) provision for credit losses		1,319		(1,768	)		771		1,492		(184	)
Other operating income		3,268		2,703			2,535		3,507		2,451
Other operating expense		21,764		18,581			19,116		18,723		18,069
Income before provision for income taxes		10,156		14,041			10,291		9,220		8,884
Provision for income taxes		2,413		3,253			1,474		2,133		1,786
Net income	$	7,743	$	10,788		$	8,817	$	7,087	$	7,098
Weighted average shares outstanding, diluted		5,611,558		5,608,102			5,597,889		5,583,055		5,558,580
Diluted earnings per share attributable to Community Banking	$	1.37	$	1.93		$	1.58	$	1.26	$	1.27

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025			June 30, 2024
Net interest income	$	58,122		$	48,533
(Benefit) provision for credit losses		(449	)		13
Other operating income		5,971			4,919
Other operating expense		40,345			35,247
Income before provision for income taxes		24,197			18,192
Provision for income taxes		5,666			3,752
Net income Community Banking segment	$	18,531		$	14,440
Weighted average shares outstanding, diluted		5,611,734			5,562,025
Diluted earnings per share	$	3.30		$	2.59

Home Mortgage Lending

During the second quarter of 2025, mortgage loans funded for sale were $249.7 million, compared to $108.5 million in the first quarter of 2025, and $152.3 million in the second quarter of 2024.

During the second quarter of 2025, the Bank purchased loans of $27.5 million from its subsidiary, Residential Mortgage, of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.71%, as compared to $13.1 million and 6.39% in the first quarter of 2025, and $29.2 million and 6.82% in the second quarter of 2024. Net interest income contributed $3.5 million to total Home Mortgage Lending revenue in the second quarter of 2025, up from $3.0 million in the prior quarter, and up from $2.8 million in the second quarter a year ago.

The Company reclassified $100 million in consumer mortgages held for investment to held for sale in the first quarter of 2025 and recorded unrealized losses of $1.2 million related to this portfolio in the first quarter of 2025. In the second quarter of 2025, the Company sold $61 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $545,000.

The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 22% of Residential Mortgage’s $216 million total production in the second quarter of 2025 (excluding the $61 million in mortgages sold noted above), 20% of $122 million total production in the first quarter of 2025, and 22% of $182 million total production in the second quarter of 2024.

The provision for credit losses in the Home Mortgage Lending segment was $639,000 in the second quarter of 2025 compared to a benefit to the provision for credit losses of $307,000 in the first quarter of 2025 and a provision for credit loses of $64,000 in the second quarter of 2024. The increase in the provision for credit losses in the second quarter of 2025 in the Home Mortgage Lending segment as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances. The benefit to the provision for loan losses in the Home Mortgage Lending segment in the first quarter of 2025 was primarily the result of the reclassification of $100 million in mortgage loans to loans held for sale, which was only partially offset by an increase in the provision for loan losses due to changes in the Company’s loss rate regression models for home mortgage loans.

The net change in fair value of mortgage servicing rights decreased mortgage banking income by $818,000 during the second quarter of 2025 compared to a decrease of $855,000 for the first quarter of 2025 and a decrease of $81,000 for the second quarter of 2024. Mortgage servicing revenue increased to $3.0 million in the second quarter of 2025 from $2.7 million in the prior quarter and increased from $2.2 million in the second quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the second quarter of 2025, the Company’s servicing portfolio increased $69.3 million compared to a $24.0 million increase in the first quarter of 2025, and an increase of $41.8 million in the second quarter of 2024.

As of June 30, 2025, Northrim serviced 6,458 loans in its $1.55 billion home-mortgage-servicing portfolio, a 5% increase compared to the $1.48 billion serviced as of the end of the first quarter of 2025, and a 41% increase from the $1.10 billion serviced a year ago.

The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Mortgage commitments	$	73,198		$	68,258		$	32,299		$	77,591		$	88,006

Mortgage loans funded for sale	$	249,680		$	108,499		$	162,530		$	209,960		$	152,339
Mortgage loans funded for investment		27,455			13,061			23,380			38,087			29,175
Total mortgage loans funded	$	277,135		$	121,560		$	185,910		$	248,047		$	181,514
Mortgage loan refinances to total fundings		10	%		11	%		11	%		6	%		6	%
Mortgage loans serviced for others	$	1,553,987		$	1,484,714		$	1,460,720		$	1,166,585		$	1,101,800

Net realized and unrealized gains on mortgage loans sold and held for sale	$	5,091		$	1,580		$	3,747		$	5,079		$	3,189
Change in fair value of mortgage loan commitments, net		(110	)		660			(665	)		60			390
Total production revenue		4,981			2,240			3,082			5,139			3,579
Mortgage servicing revenue		2,957			2,696			2,847			2,583			2,164
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(355	)		(322	)		1,372			(566	)		239
Other²		(463	)		(533	)		(499	)		(402	)		(320	)
Total mortgage servicing revenue, net		2,139			1,841			3,720			1,615			2,083
Other mortgage banking revenue		280			170			238			293			222
Total mortgage banking income	$	7,400		$	4,251		$	7,040		$	7,047		$	5,884

Net interest income	$	3,507		$	3,046		$	3,280		$	2,941		$	2,775
Provision (benefit) for credit losses		639			(307	)		305			571			64
Mortgage banking income		7,400			4,251			7,040			7,047			5,884
Other operating expense		7,593			6,490			7,198			7,643			6,697
Income before provision for income taxes		2,675			1,114			2,817			1,774			1,898
Provision for income taxes		746			310			842			497			532
Net income	$	1,929		$	804		$	1,975		$	1,277		$	1,366

Weighted average shares outstanding, diluted		5,611,558			5,608,102			5,597,889			5,583,055			5,558,580
Diluted earnings per share attributable to Home Mortgage Lending	$	0.34		$	0.14		$	0.35		$	0.23		$	0.25

¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025			June 30, 2024
Mortgage loans funded for sale	$	358,179		$	236,663
Mortgage loans funded for investment		40,516			46,578
Total mortgage loans funded	$	398,695		$	283,241
Mortgage loan refinances to total fundings		10	%		6	%

Net realized and unrealized gains on mortgage loans sold and held for sale	$	6,671		$	5,168
Change in fair value of mortgage loan commitments, net		550			777
Total production revenue		7,221			5,945
Mortgage servicing revenue		5,653			3,725
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(677	)		528
Other²		(996	)		(634	)
Total mortgage servicing revenue, net		3,980			3,619
Other mortgage banking revenue		450			351
Total mortgage banking income	$	11,651		$	9,915

Net interest income	$	6,553		$	5,007
Provision for credit losses		332			16
Mortgage banking income		11,651			9,915
Other operating expense		14,083			12,783
Income before provision for income taxes		3,789			2,123
Provision for income taxes		1,056			595
Net income Home Mortgage Lending segment	$	2,733		$	1,528

Weighted average shares outstanding, diluted		5,611,734			5,562,025
Diluted earnings per share	$	0.48		$	0.28

¹Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
²Represents changes due to collection/realization of expected cash flows over time.

Specialty Finance

The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income from loans and other fee income.

The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the second quarter of 2025 was $1.3 million compared to $1.3 million in the first quarter of 2025 and $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs.

Average purchased receivables and loan balances at Sallyport were $71.0 million for the second quarter of 2025 with a yield of 27.23% compared to average balances of $59.9 million for the first quarter of 2025 and a yield of 35.8%. The yield in the first quarter of 2025 included the recognition of $899,000 in nonaccrual fee income collected during the quarter related to two nonperforming receivables and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%.

The following tables provide highlights of the Specialty Finance segment of Northrim:

	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025		March 31, 2025			December 31, 2024			September 30, 2024		June 30, 2024
Purchased receivable income	$	5,897	$	6,150		$	3,526		$	1,033	$	1,242
Other operating income		75		(64	)		(68	)		—		—
Interest income		782		596			407			158		170
Total revenue		6,754		6,682			3,865			1,191		1,412
Provision for credit losses		18		666			125			—		—
Compensation expense – SCF acquisition payments		600		600			—			—		—
Other operating expense		2,531		2,500			3,063			362		428
Interest expense		668		496			489			185		210
Total expense		3,817		4,262			3,677			547		638
Income before provision for income taxes		2,937		2,420			188			644		774
Provision for income taxes		831		688			53			183		218
Net income Specialty Finance segment	$	2,106	$	1,732		$	135		$	461	$	556
Weighted average shares outstanding, diluted		5,611,558		5,608,102			5,597,889			5,583,055		5,558,580
Diluted earnings per share attributable to Specialty Finance	$	0.38	$	0.31		$	0.02		$	0.08	$	0.10

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025		June 30, 2024
Purchased receivable income	$	12,047	$	2,587
Other operating income		11		—
Interest income		1,378		382
Total revenue		13,436		2,969
Provision for credit losses		684		—
Compensation expense – SCF acquisition payments		1,200		—
Other operating expense		5,031		802
Interest expense		1,164		422
Total expense		8,079		1,224
Income before provision for income taxes		5,357		1,745
Provision for income taxes		1,519		494
Net income Specialty Finance segment	$	3,838	$	1,251
Weighted average shares outstanding, diluted		5,611,734		5,562,025
Diluted earnings per share	$	0.69	$	0.23

Balance Sheet Review

Northrim’s total assets were $3.24 billion at June 30, 2025, up 3% from the preceding quarter and up 15% from a year ago. Northrim’s loan-to-deposit ratio was 78% at June 30, 2025, up from 76% at both March 31, 2025 and June 30, 2024.

At June 30, 2025, liquid assets, investments, and loans maturing within one year were $1.15 billion and our funds available for borrowing under our existing lines of credit were $507.9 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

Average interest-earning assets were $2.89 billion in the second quarter of 2025, up 4% from $2.78 billion in the first quarter of 2025 and up 12% from $2.57 billion in the second quarter a year ago. The average yield on interest-earning assets was 6.27% in the second quarter of 2025, up from 6.10% in the preceding quarter and up from 5.83% in the second quarter of 2024.

Average investment securities decreased to $515.9 million in the second quarter of 2025, compared to $523.8 million in the first quarter of 2025 and $640.0 million in the second quarter a year ago. The average net tax equivalent yield on the securities portfolio was 3.07% for the second quarter of 2025, up from 2.97% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at June 30, 2025, was approximately 2.4 years compared to approximately 2.5 years at June 30, 2024. As of June 30, 2025, $55.7 million of available for sale securities with a weighted average yield of 1.40% are scheduled to mature in the next six months, $106.8 million with a weighted average yield of 1.28% are scheduled to mature in six months to one year, and $145.0 million with a weighted average yield of 1.96% are scheduled to mature in the following year, representing a total of $307.5 million or 11% of earning assets that are scheduled to mature in the next 24 months.

Total unrealized losses, net of tax, on available for sale securities decreased by $1.9 million in the second quarter of 2025 resulting in total unrealized loss, net of tax, of $3.6 million compared to $5.5 million at March 31, 2025, and $15.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $711,000 at June 30, 2025, compared to $1.1 million at March 31, 2025, and $3.0 million a year ago.

Average interest bearing deposits in other banks decreased to $27.2 million in the second quarter of 2025 from $38.0 million in the first quarter of 2025 and increased from $17.4 million in the second quarter of 2024, as cash was used to fund loan growth and provide liquidity.

Loans held for sale decreased to $127.1 million at June 30, 2025, compared to $159.6 million at March 31, 2025, largely due to the sale of $61 million consumer mortgage loans in the second quarter of 2025 that had been reclassified to loans held for sale from portfolio loans in the first quarter of 2025, and increased from $85.9 million a year ago, due to higher loan production by Residential Mortgage.

Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $2.00 billion at June 30, 2025, up $59.1 million or 3% from the preceding quarter and up 21% from a year ago. This increase in the second quarter of 2025 was diversified throughout the loan portfolio including consumer mortgage loans increasing by $19 million, construction loans increasing by $31.2 million, commercial real estate owner-occupied loans increasing $17.1 million, and nonowner-occupied commercial real estate and multi-family loans increasing by $6.5 million from the preceding quarter. These increases were partially offset by a $3.8 million decrease in commercial loans. Average portfolio loans in the second quarter of 2025 were $2.17 billion, which was consistent with the preceding quarter after the sale of $61 million in consumer mortgage loans, and up 18% from a year ago. Yields on average portfolio loans in the second quarter of 2025 increased to 6.99% from 6.89% in the first quarter and increased from 6.87% in the second quarter of 2024. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.45% in the second quarter of 2025 as compared to 7.43% in the first quarter of 2025 and 8.26% in the second quarter of 2024.

Northrim’s loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower’s total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $39.4 million at June 30, 2025. At June 30, 2025, Northrim had 22 relationships totaling $504.0 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit.

Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.81 billion at June 30, 2025, up 1% from $2.78 billion at March 31, 2025, and up 14% from $2.46 billion a year ago. “The increase in deposits in the second quarter of 2025 was consistent with our customers’ normal business cycles which typically result in increases in deposit balances in the second and third quarters and decreases in the first and fourth quarters,” said Ballard. At June 30, 2025, 75% of total deposits were held in business accounts and 25% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $60,000 as of June 30, 2025. Northrim had 27 customers with balances over $10 million as of June 30, 2025, which accounted for $731.1 million, or 27%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 10% from the prior year to $777.9 million at June 30, 2025. Demand deposits were 28% of total deposits at June 30, 2025 up from 27% at March 31, 2025 and were down from 29% of total deposits at June 30, 2024. Average interest-bearing deposits were up 1% to $2.03 billion with an average cost of 2.04% in the second quarter of 2025, compared to $2.00 billion and an average cost of 2.01% in the first quarter of 2025, and up 18% compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024. Uninsured deposits totaled $1.02 billion or 36% of total deposits as of June 30, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024.

Shareholders’ equity was $290.2 million, or $52.55 book value per share, at June 30, 2025, compared to $279.8 million, or $50.67 book value per share, at March 31, 2025 and $247.2 million, or $44.93 book value per share, a year ago. Tangible book value per share^* was $43.35 at June 30, 2025, compared to $41.47 at March 31, 2025, and $42.03 per share a year ago. The increase in shareholders’ equity in the second quarter of 2025 as compared to the first quarter of 2025 was largely the result of earnings of $11.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $1.9 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the second quarter of 2025 and currently has no plans to repurchase shares this year. Tangible common equity to tangible assets^* was 7.50% as of June 30, 2025, compared to 7.41% as of March 31, 2025 and 8.24% as of June 30, 2024. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.80% at June 30, 2025, compared to 9.76% at March 31, 2025, and 11.68% at June 30, 2024.

Asset Quality

Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

Nonperforming assets (“NPAs”) net of government guarantees were $11.9 million at June 30, 2025, down from $12.3 million at March 31, 2025 and up from $5.1 million a year ago. Of the NPAs at June 30, 2025, $4.2 million are attributable to the Community Banking segment and $7.5 million are attributable to the Specialty Finance segment.

Net adversely classified loans were $35.8 million at June 30, 2025, as compared to $20.4 million at March 31, 2025, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. The increase in adversely classified loans, net of government guarantees, at June 30, 2025 as compared to the prior quarter is mostly attributable to two commercial relationships totaling $16.0 million. Net loan charge-offs were $140,000 in the second quarter of 2025, compared to net loan recoveries of $34,000 in the first quarter of 2025, and net loan recoveries of $26,000 in the second quarter of 2024. Additionally, Northrim had 13 loan modifications to borrowers experiencing financial difficulty totaling $3.3 million, net of government guarantees that had been modified in the last twelve months as of June 30, 2025.

Northrim had $141.2 million, or 6% of portfolio loans, in the Healthcare sector, $127.2 million, or 6% of portfolio loans, in the Tourism sector, $121.0 million, or 5% of portfolio loans, in the Accommodations sector, $93.4 million, or 4% of portfolio loans, in the Retail sector, $84.2 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $76.2 million, or 3% of portfolio loans, in the Fishing sector, and $59.5 million, or 3% in the Restaurants and Breweries sector as of June 30, 2025.

Northrim estimates that $105.9 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of June 30, 2025, and $1.5 million of these loans are adversely classified. As of June 30, 2025, Northrim has an additional $76.9 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

About Northrim BanCorp

Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

www.northrim.com

Forward-Looking Statement

This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the war in Ukraine and the conflict in the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.
References:

https://www.bea.gov/

http://almis.labor.state.ak.us/

http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

http://www.tax.state.ak.us/

https://www.bls.gov/regions/west/news-release/consumerpriceindex_anchorage.htm

https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C

https://www.trade.gov/data-visualization/tradestats-express-trade-partner-state

https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring

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https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

Contact:	Mike Huston, President, CEO, and COO
	(907) 261-8750
	Jed Ballard, Chief Financial Officer
	(907) 261-3539

Income Statement
(Dollars in thousands, except per share data)	Three Months Ended								Year-to-date
(Unaudited)	June 30,		March 31,			June 30,			June 30,		June 30,
		2025		2025			2024			2025		2024
Interest Income:
Interest and fees on loans	$	40,519	$	37,470		$	32,367		$	77,989	$	62,817
Interest on portfolio investments		3,765		3,675			4,310			7,440		8,830
Interest on deposits in banks		515		416			232			931		1,070
Total interest income		44,799		41,561			36,909			86,360		72,717
Interest Expense:
Interest expense on deposits		10,304		9,935			9,476			20,239		18,656
Interest expense on borrowings		903		329			380			1,232		561
Total interest expense		11,207		10,264			9,856			21,471		19,217
Net interest income		33,592		31,297			27,053			64,889		53,500

Provision (benefit) for credit losses		1,976		(1,409	)		(120	)		567		29
Net interest income after provision for credit losses		31,616		32,706			27,173			64,322		53,471

Other Operating Income:
Mortgage banking income		7,400		4,251			5,884			11,651		9,915
Purchased receivable income		5,897		6,100			1,242			12,047		2,587
Bankcard fees		1,153		1,074			1,105			2,227		2,022
Service charges on deposit accounts		726		677			572			1,403		1,121
Unrealized gain (loss) on marketable equity securities		78		(50	)		(60	)		28		254
Other income		1,386		988			834			2,324		1,522
Total other operating income		16,640		13,040			9,577			29,680		17,421

Other Operating Expense:
Salaries and other personnel expense		20,854		17,223			16,627			38,077		32,044
Data processing expense		3,366		3,104			2,601			6,470		5,260
Occupancy expense		2,104		1,889			1,843			3,993		3,805
Professional and outside services		1,113		1,115			726			2,228		1,481
Marketing expense		1,042		672			690			1,714		1,203
Insurance expense		756		1,017			692			1,773		1,471
Compensation expense – SCF acquisition payments		600		600			—			1,200		—
OREO expense, net rental income and gains on sale		2		3			2			5		(389	)
Other expense		2,651		2,548			2,013			5,199		3,957
Total other operating expense		32,488		28,171			25,194			60,659		48,832

Income before provision for income taxes		15,768		17,575			11,556			33,343		22,060
Provision for income taxes		3,990		4,251			2,536			8,241		4,841
Net income	$	11,778	$	13,324		$	9,020		$	25,102	$	17,219

Basic EPS	$	2.13	$	2.41		$	1.64		$	4.54	$	3.13
Diluted EPS	$	2.09	$	2.38		$	1.62		$	4.47	$	3.10
Weighted average shares outstanding, basic		5,521,811		5,519,998			5,500,588			5,520,905		5,500,083
Weighted average shares outstanding, diluted		5,611,558		5,608,102			5,558,580			5,611,734		5,562,025

Balance Sheet
(Dollars in thousands)
(Unaudited)	June 30,			March 31,			June 30,
		2025			2025			2024

Assets:
Cash and due from banks	$	43,734		$	29,671		$	33,364
Interest bearing deposits in other banks		97,549			35,852			21,058
Investment securities available for sale, at fair value		429,421			463,096			584,964
Investment securities held to maturity		36,750			36,750			36,750
Marketable equity securities, at fair value		8,747			8,669			12,381
Investment in Federal Home Loan Bank stock		8,343			5,342			4,929
Loans held for sale		127,116			159,603			85,926

Portfolio loans		2,202,115			2,124,330			1,875,907
Allowance for credit losses, loans		(22,585	)		(20,922	)		(17,694	)
Net portfolio loans		2,179,530			2,103,408			1,858,213
Purchased receivables, net		109,098			95,489			25,722
Mortgage servicing rights, at fair value		27,506			26,814			21,077
Other real estate owned, net		—			—			—
Premises and equipment, net		36,501			37,070			40,393
Lease right of use asset		7,033			7,632			8,244
Goodwill and intangible assets		50,824			50,824			15,967
Other assets		81,608			80,740			72,680
Total assets	$	3,243,760		$	3,140,960		$	2,821,668

Liabilities:
Demand deposits	$	777,948		$	742,560		$	704,471
Interest-bearing demand		1,196,048			1,187,465			906,010
Savings deposits		248,141			256,650			238,156
Money market deposits		196,166			193,842			195,159
Time deposits		390,867			397,460			420,010
Total deposits		2,809,170			2,777,977			2,463,806
Other borrowings		63,026			13,136			43,961
Junior subordinated debentures		10,310			10,310			10,310
Lease liability		7,077			7,682			8,269
Other liabilities		63,958			52,099			48,122
Total liabilities		2,953,541			2,861,204			2,574,468

Shareholders’ Equity:
Total shareholders’ equity		290,219			279,756			247,200
Total liabilities and shareholders’ equity	$	3,243,760		$	3,140,960		$	2,821,668

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Composition of Portfolio Loans
	June 30, 2025					March 31, 2025					December 31, 2024					September 30, 2024					June 30, 2024
	Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total
Commercial loans	$	569,753		27	%	$	573,593		27	%	$	518,148		24	%	$	492,414		24	%	$	495,781		26	%
Commercial real estate:
Owner occupied properties		447,561		20	%		430,442		20	%		420,060		20	%		412,827		20	%		383,832		20	%
Nonowner occupied and
multifamily properties		696,766		31	%		690,277		32	%		619,431		29	%		584,302		31	%		551,130		30	%
Residential real estate:
1-4 family properties
secured by first liens		206,905		9	%		188,219		9	%		270,535		13	%		248,514		12	%		222,026		12	%
1-4 family properties
secured by junior liens &
revolving secured by first liens		60,118		3	%		53,836		3	%		48,857		2	%		45,262		2	%		41,258		2	%
1-4 family construction		36,005		2	%		34,017		2	%		39,789		2	%		39,794		2	%		29,510		2	%
Construction loans		187,442		8	%		156,211		7	%		214,068		10	%		185,362		9	%		154,009		8	%
Consumer loans		7,570		—	%		7,424		—	%		7,562		—	%		7,836		—	%		6,679		—	%
Subtotal		2,212,120					2,134,019					2,138,450					2,016,311					1,884,225
Unearned loan fees, net		(10,005	)				(9,689	)				(9,187	)				(8,746	)				(8,318	)
Total portfolio loans	$	2,202,115				$	2,124,330				$	2,129,263				$	2,007,565				$	1,875,907

Composition of Deposits
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total
Demand deposits	$	777,948	28	%	$	742,560	27	%	$	706,225	27	%	$	763,595	29	%	$	704,471	29	%
Interest-bearing demand		1,196,048	42	%		1,187,465	43	%		1,108,404	41	%		979,238	37	%		906,010	36	%
Savings deposits		248,141	9	%		256,650	9	%		250,900	9	%		245,043	9	%		238,156	10	%
Money market deposits		196,166	7	%		193,842	7	%		196,290	7	%		204,821	8	%		195,159	8	%
Time deposits		390,867	14	%		397,460	14	%		418,370	16	%		435,870	17	%		420,010	17	%
Total deposits	$	2,809,170			$	2,777,977			$	2,680,189			$	2,628,567			$	2,463,806

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Asset Quality	June 30,		March 31,		June 30,
		2025		2025		2024
Nonaccrual loans – Community Banking	$	4,180	$	4,274	$	4,233
Nonaccrual loans – Home Mortgage Lending		197		221		253
Nonaccrual loans – Specialty Finance		3,484		3,573		344
Nonaccrual loans – Total		7,861		8,068		4,830
Loans 90 days past due and accruing – Community Banking		—		—		17
Loans 90 days past due and accruing – Total		—		—		17
Total nonperforming loans – Community Banking		4,180		4,274		4,250
Total nonperforming loans – Home Mortgage Lending		197		221		253
Total nonperforming loans – Specialty Finance		3,484		3,573		344
Total nonperforming loans – Total		7,861		8,068		4,847
Nonperforming loans guaranteed by gov’t – Community Banking		70		80		—
Nonperforming loans guaranteed by gov’t – Total		70		80		—
Net nonperforming loans – Community Banking		4,110		4,194		4,250
Net nonperforming loans – Home Mortgage Lending		197		221		253
Net nonperforming loans – Specialty Finance		3,484		3,573		344
Net nonperforming loans – Total		7,791		7,988		4,847

Repossessed assets – Community Banking		50		297		297
Repossessed assets – Total		50		297		297

Nonperforming purchased receivables – Specialty Finance		4,017		4,007		—

Net nonperforming assets – Community Banking		4,160		4,491		4,547
Net nonperforming assets – Home Mortgage Lending		197		221		253
Net nonperforming assets – Specialty Finance		7,501		7,580		344
Net nonperforming assets – Total	$	11,858	$	12,292	$	5,144

Adversely classified loans, net of gov’t guarantees – Community Banking	$	32,128	$	16,592	$	6,006
Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending		223		252		718
Adversely classified loans, net of gov’t guarantees – Specialty Finance		3,484		3,573		344
Adversely classified loans, net of gov’t guarantees – Total	$	35,835	$	20,417	$	7,068

Special mention loans, net of gov’t guarantees – Community Banking	$	3,966	$	14,496	$	8,902
Special mention loans, net of gov’t guarantees – Home Mortgage Lending		790		637		—
Special mention loans, net of gov’t guarantees – Total	$	4,756	$	15,133	$	8,902

Asset Quality, Continued	June 30,				March 31,				June 30,
		2025				2025				2024
Nonperforming loans, net of government guarantees / portfolio loans		0.35		%		0.38		%		0.26		%
Nonperforming loans, net of government guarantees / portfolio loans,
net of government guarantees		0.38		%		0.40		%		0.28		%
Nonperforming assets, net of government guarantees / total assets		0.37		%		0.39		%		0.18		%
Nonperforming assets, net of government guarantees / total assets
net of government guarantees		0.38		%		0.41		%		0.19		%

Loans 30-89 days past due and accruing, net of government guarantees /								%
portfolio loans		0.06		%		0.04		%		0.03		%
Loans 30-89 days past due and accruing, net of government guarantees /
portfolio loans, net of government guarantees		0.06		%		0.04		%		0.04		%

Allowance for credit losses for loans / portfolio loans		1.03		%		0.98		%		0.94		%
Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees		1.10		%		1.06		%		1.01		%
Allowance for credit losses for loans / nonperforming loans, net of
government guarantees		290		%		262		%		365		%

Gross loan charge-offs for the quarter – Community Banking	$3				$50				$—
Gross loan charge-offs for the quarter – Specialty Finance		152				—				—
Gross loan charge-offs for the quarter – Total		155				50				—

Gross loan recoveries for the quarter – Community Banking		(15	)			(84	)			(26	)
Gross loan recoveries for the quarter – Home Mortgage Lending		—				—				—
Gross loan recoveries for the quarter – Specialty Finance		—				—				—
Gross loan recoveries for the quarter – Total	($15		)		($84		)		($26		)

Net loan (recoveries) charge-offs for the quarter – Community Banking	($12		)		($34		)		($26		)
Net loan (recoveries) charge-offs for the quarter – Specialty Finance		152				—				—
Net loan (recoveries) charge-offs for the quarter – Total	$140				($34		)		($26		)

Net loan charge-offs (recoveries) year-to-date – Community Banking	($46		)		($34		)		($68		)
Net loan charge-offs (recoveries) year-to-date – Specialty Finance		152				—				—
Net loan charge-offs (recoveries) year-to-date – Total	$106				($34		)		($68		)

Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter		0.01		%		—		%		—		%

Net loan charge-offs (recoveries) year-to-date / average loans,
year-to-date annualized		0.01		%		(0.01	)	%		(0.01	)	%

Allowance for credit losses for purchased receivables / purchased receivables		3.05		%		3.72		%		—		%

Net purchased receivable charge-offs (recoveries) for the quarter	$281				$—				$—

Net purchased receivable charge-offs (recoveries) year-to-date	$281				$—				$—

Net purchased receivable charge-offs (recoveries) for the quarter /
average purchased receivables, for the quarter		0.27		%	NA				NA

Net purchased receivable charge-offs (recoveries) year-to-date / average
purchased receivables, year-to-date annualized		0.61		%	NA				NA

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Three Months Ended
	June 30, 2025					March 31, 2025					June 30, 2024
				Average					Average					Average
	Average			Tax Equivalent		Average			Tax Equivalent		Average			Tax Equivalent
	Balance			Yield/Rate		Balance			Yield/Rate		Balance			Yield/Rate
Assets
Interest bearing deposits in other banks	$	27,216		7.60	%	$	37,969		4.44	%	$	17,352		5.27	%
Portfolio investments		515,916		3.07	%		523,753		2.97	%		639,980		2.82	%
Loans held for sale		173,675		6.50	%		46,223		5.86	%		65,102		6.08	%
Portfolio loans		2,172,482		6.99	%		2,173,425		6.89	%		1,845,832		6.87	%
Total interest-earning assets		2,889,289		6.27	%		2,781,370		6.10	%		2,568,266		5.83	%
Nonearning assets		306,206					293,415					204,509
Total assets	$	3,195,495				$	3,074,785				$	2,772,775

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	2,029,100		2.04	%	$	2,002,594		2.01	%	$	1,725,013		2.21	%
Borrowings		86,404		4.14	%		37,081		3.55	%		38,390		3.92	%
Total interest-bearing liabilities		2,115,504		2.12	%		2,039,675		2.04	%		1,763,403		2.25	%

Noninterest-bearing demand deposits		737,112					697,534					706,339
Other liabilities		54,320					63,348					58,549
Shareholders’ equity		288,559					274,228					244,484
Total liabilities and shareholders’ equity	$	3,195,495				$	3,074,785				$	2,772,775
Net spread				4.15	%				4.06	%				3.58	%
NIM				4.66	%				4.55	%				4.24	%
NIMTE^*				4.72	%				4.61	%				4.30	%
Cost of funds				1.57	%				1.52	%				1.60	%
Average portfolio loans to average
interest-earning assets		75.19	%				78.14	%				71.87	%
Average portfolio loans to average total deposits		78.54	%				80.49	%				75.92	%
Average non-interest deposits to average
total deposits		26.65	%				25.83	%				29.05	%
Average interest-earning assets to average
interest-bearing liabilities		136.58	%				136.36	%				145.64	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Year-to-date
	June 30, 2025					June 30, 2024
				Average					Average
	Average			Tax Equivalent		Average			Tax Equivalent
	Balance			Yield/Rate		Balance			Yield/Rate
Assets
Interest bearing deposits in other banks	$	32,563		5.77	%	$	39,457		5.36	%
Portfolio investments		519,813		3.02	%		655,458		2.82	%
Loans held for sale		110,301		6.35	%		48,868		6.10	%
Portfolio loans		2,172,950		6.94	%		1,819,629		6.81	%
Total interest-earning assets		2,835,627		6.19	%		2,563,412		5.76	%
Nonearning assets		299,848					202,819
Total assets	$	3,135,475				$	2,766,231

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	2,015,920		2.02	%	$	1,728,468		2.17	%
Borrowings		61,879		3.96	%		31,167		3.55	%
Total interest-bearing liabilities		2,077,799		2.08	%		1,759,635		2.19	%

Noninterest-bearing demand deposits		717,432					705,736
Other liabilities		58,809					59,478
Shareholders’ equity		281,435					241,382
Total liabilities and shareholders’ equity	$	3,135,475				$	2,766,231
Net spread				4.11	%				3.57	%
NIM				4.61	%				4.20	%
NIMTE^*				4.66	%				4.26	%
Cost of funds				1.55	%				1.57	%
Average portfolio loans to average interest-earning assets		76.63	%				70.98	%
Average portfolio loans to average total deposits		79.50	%				74.75	%
Average non-interest deposits to average total deposits		26.25	%				28.99	%
Average interest-earning assets to average interest-bearing liabilities		136.47	%				145.68	%

Additional Financial Information
(Dollars in thousands, except per share data)
(Unaudited)

Capital Data (At quarter end)
	June 30, 2025				March 31, 2025				June 30, 2024
Book value per share	$52.55				$50.67				$44.93
Tangible book value per share^*	$43.35				$41.47				$42.03
Total shareholders’ equity/total assets		8.95		%		8.91		%		8.76		%
Tangible Common Equity/Tangible Assets^*		7.50		%		7.41		%		8.24		%
Tier 1 Capital / Risk Adjusted Assets		9.80		%		9.76		%		11.68		%
Total Capital / Risk Adjusted Assets		10.71		%		10.62		%		12.58		%
Tier 1 Capital / Average Assets		7.99		%		8.02		%		9.17		%
Shares outstanding		5,522,271				5,520,892				5,501,562
Total unrealized loss on AFS debt securities, net of income taxes	($3,571		)		($5,452		)		($15,197		)
Total unrealized gain on derivatives and hedging activities, net of income taxes	$1,026				$1,097				$1,212

Profitability Ratios
	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
For the quarter:
NIM	4.66	%	4.55	%	4.41	%	4.29	%	4.24	%
NIMTE^*	4.72	%	4.61	%	4.47	%	4.35	%	4.30	%
Efficiency ratio	64.68	%	63.54	%	66.96	%	66.11	%	68.78	%
Return on average assets	1.48	%	1.76	%	1.43	%	1.22	%	1.31	%
Return on average equity	16.37	%	19.70	%	16.32	%	13.69	%	14.84	%

	June 30, 2025		June 30, 2024
Year-to-date:
NIM	4.61	%	4.20	%
NIMTE^*	4.66	%	4.26	%
Efficiency ratio	64.14	%	68.85	%
Return on average assets	1.61	%	1.25	%
Return on average equity	17.99	%	14.35	%

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

Net interest margin on a tax equivalent basis

Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

	Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Net interest income	$	33,592		$	31,297		$	30,841		$	28,842		$	27,053
Divided by average interest-bearing assets		2,889,289			2,781,370			2,787,517			2,674,291			2,568,266
Net interest margin (“NIM”)²		4.66	%		4.55	%		4.41	%		4.29	%		4.24	%

Net interest income	$	33,592		$	31,297		$	30,841		$	28,842		$	27,053
Plus: reduction in tax expense related to
tax-exempt interest income		409			379			379			385			378
	$	34,001		$	31,676		$	31,220		$	29,227		$	27,431
Divided by average interest-bearing assets		2,889,289			2,781,370			2,787,517			2,674,291			2,568,266
NIMTE²		4.72	%		4.61	%		4.47	%		4.35	%		4.30	%

	Year-to-date
	June 30, 2025			June 30, 2024
Net interest income	$	64,889		$	53,500
Divided by average interest-bearing assets		2,835,627			2,563,412
Net interest margin (“NIM”)³		4.61	%		4.20	%

Net interest income	$	64,889		$	53,500
Plus: reduction in tax expense related to
tax-exempt interest income		788			757
	$	65,677		$	54,257
Divided by average interest-bearing assets		2,835,627			2,563,412
NIMTE³		4.66	%		4.26	%

²Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.

³Calculated using actual days in the year divided by 365 for year-to-date period in 2025 and 366 for year-to-date period in 2024, respectively.

*Non-GAAP Financial Measures
(Dollars and shares in thousands, except per share data)
(Unaudited)

Tangible Book Value Per Share

Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Total shareholders’ equity	$	290,219	$	279,756	$	267,116	$	260,050	$	247,200
Divided by shares outstanding		5,522		5,521		5,518		5,502		5,502
Book value per share	$	52.55	$	50.68	$	48.41	$	47.26	$	44.93

	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Total shareholders’ equity	$	290,219	$	279,756	$	267,116	$	260,050	$	247,200
Less: goodwill and intangible assets		50,824		50,824		50,968		15,967		15,967
	$	239,395	$	228,932	$	216,148	$	244,083	$	231,233
Divided by shares outstanding		5,522		5,521		5,518		5,502		5,502
Tangible book value per share	$	43.35	$	41.47	$	39.17	$	44.36	$	42.03

Tangible Common Equity to Tangible Assets

Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.

Northrim BanCorp, Inc.	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Total assets		3,243,760			3,140,960			3,041,869			2,963,392			2,821,668
Total shareholders’ equity to total assets		8.95	%		8.91	%		8.78	%		8.78	%		8.76	%

Northrim BanCorp, Inc.	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Less: goodwill and other intangible assets, net		50,824			50,824			50,968			15,967			15,967
Tangible common shareholders’ equity	$	239,395		$	228,932		$	216,148		$	244,083		$	231,233

Total assets	$	3,243,760		$	3,140,960		$	3,041,869		$	2,963,392		$	2,821,668
Less: goodwill and other intangible assets, net		50,824			50,824			50,968			15,967			15,967
Tangible assets	$	3,192,936		$	3,090,136		$	2,990,901		$	2,947,425		$	2,805,701
Tangible common equity ratio		7.50	%		7.41	%		7.23	%		8.28	%		8.24	%

Note Transmitted on GlobeNewswire on July 23, 2025, at 12:15 pm Alaska Standard Time.

The MIL Network –

July 24, 2025

MIL-OSI Africa: Hope for Liberia’s youth as country pioneers African Development Bank-financed Youth Entrepreneurship Investment Bank

Source: APO

Program will turn job seekers into job creators – Liberian President Boakai
The future of Liberia’s youth cannot be left to hustling – Dr. Adesina

Liberia has become the first country to launch an African Development Bank Group initiative (www.AfDB.org) that will help tackle youth unemployment among African youth.

President of the Republic of Liberia, Joseph Nyuma Boakai Sr was joined in the capital Monrovia by the Bank Group’s President, Dr. Akinwumi A. Adesina for the official launch of the first Youth Entrepreneurship Investment Bank (YEIB) (https://apo-opa.co/413UWzR), on Tuesday 22 July.

The Youth Entrepreneurship Investment Banks will promote private sector-led inclusive economic development, by creating entrepreneurship opportunities for young Africans aged 18-35. According to the Bank’s Country Focus Report 2025 (https://apo-opa.co/3GRnm9E), for Liberia, underemployment and informal employment have long undermined the country’s ability to harness a key demographic strength.

To address these challenges, Liberia’s Youth Entrepreneurship Investment Bank is expected to finance 30,000 youth-led businesses, create 120,000 direct and indirect jobs, contribute $80 million to government revenues through taxes, and unlock up to $500 million in additional lending to youth-owned businesses across the country.

The Youth Bank is being jointly financed by the African Development Fund—the concessional lending arm of the African Development Bank Group ($15.9 million)—and the Government of Liberia ($1.2 million in in-kind contributions).

“[The YEIB] speaks directly to the heart of our future because over sixty percent of our population is under the age of thirty. This program gives hope to our young people by turning them from job seekers into job creators,” said President Boakai. “It will provide financing, mentorship, and the skills they need to succeed in agriculture, technology, the knowledge based economy, and other emerging sectors.”

“Liberia must not watch as its best assets—its youth—falter,” Adesina said. “The future of Liberia’s youth cannot be left to ‘hustling.’” He added that with recruitment ongoing, and licensing expected to be completed shortly, the Liberian YEIB is scheduled to commence operations in early 2026, with a focus on “critical sectors with immense opportunities for the youth, including agriculture, value addition with agribusiness, digital services, mining and tourism.”

Youth entrepreneurship banks have also been approved for Nigeria (https://apo-opa.co/4kQEeeF), Ethiopia (https://apo-opa.co/417MuzC), and Cote d’Ivoire (https://apo-opa.co/3H1eA8W), representing a growing commitment to enhancing private sector development through improved financing for entrepreneurs, on a continent where three-quarters of the population are below the age of 35.

The Bank has since 1967 invested more than $1.02 billion in 72 projects in Liberia, and as of February 2024, it had an active portfolio of 18 sovereign operations worth $314.77 million, focusing primarily on transport infrastructure, energy development (https://apo-opa.co/45ev1Il), and agricultural transformation. These investments include the Mano River Union road network (https://apo-opa.co/44WwNfW) connecting Liberia with neighbouring countries, regional power interconnection initiatives, and programs supporting smallholder farmers across the country.

The Bank’s operations in Liberia are funded through multiple sources, with the African Development Fund—the concessional lending arm of the Bank Group—providing most of the financing, supplemented by the Transition Support Facility (https://apo-opa.co/4nZiwrH) and various specialized funds including the Nigeria Trust Fund (https://apo-opa.co/3UtSnn2).

Read President Boakai’s speech at the YEIB launch here (https://apo-opa.co/4m7qBbI).

Read Dr. Adesina’s speech here (https://apo-opa.co/3H11fNR).

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media Contacts:
Natalie Nkembuh and Tolu Ogunlesi
Communication and Media Relations Department
media@afdb.org

About the African Development Bank Group:
The African Development Bank Group is Africa’s leading development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries. For more information: www.AfDB.org

Media files

.

MIL OSI Africa –

July 24, 2025

MIL-OSI Security: Defense News in Brief: U.S.-Philippine Airmen strengthen ties during Cope Thunder 25-2

Source: United States Airforce

PACAF participated in Cope Thunder 25-2, a unique platform that integrates U.S. and Philippine Air Forces and enhances interoperability through bilateral fighter training, subject matter expert exchanges and key leadership engagements.

CLARK AIR BASE, Philippines (AFNS) —

U.S. Pacific Air Forces and Philippine Air Force members participated in Cope Thunder 25-2, a bilateral training conducted across multiple locations in the Philippines. The exercise aimed to strengthen partnerships and support the Philippine Air Force’s modernization efforts, promoting regional and global stability.

Established in the Philippines in 1976, Cope Thunder provides a unique platform to integrate U.S. and Philippine Air Forces and enhance interoperability through bilateral fighter training, subject matter expert exchanges and key leadership engagements. Cope Thunder 25-2 also marked the first time a U.S. Air Force F-35A Lightning II squadron has deployed to the Philippines.

“It’s obvious that this isn’t a relationship that’s simply on paper,” said Lt. Col. Bryan Mussler, 421st Mission Generation Force Element commander. “We’ve been integrating with them for a long time, and their mentality and approach to operations is very similar to ours.”

Subject matter expert exchanges during the exercise enabled U.S. and Philippine Airmen in similar career fields to share best practices and effective techniques aimed at improving day-to-day operations for both forces. These exchanges included maintenance, firefighting, airfield operations, electromagnetic warfare and basic fighter manoeuvres with U.S. and Philippine pilots flying side by side.

U.S. Air Force maintainers, assigned to the 421st Mission Generation Force Element, depart the flightline after conducting preflight operations on an F-35A Lightning II during Cope Thunder 25-2 at Clark Air Base, Philippines, July 7, 2025. The exercise enhances interoperability between the U.S. Air Force and the Philippine Air Force and supported the Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Staff Sgt. Arnaldo Puente Mendez, 421st Mission Generation Force Element aerospace ground equipment maintainer, briefs Philippine Air Force airmen on a self-generating nitrogen servicing cart during Cope Thunder 25-2 at Clark Air Base, Philippines, July 9, 2025. During the subject matter expert exchange, U.S. Airmen provided valuable insight into equipment used for aircraft maintenance, supporting Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Capt. Tyler Rico, second to the left, and Capt. Toney Fisher, right, 421st Mission Generation Force Element F-35A pilots, coordinate flight plans with Philippine Air Force pilots during the Cope Thunder 25-2 exercise at Clark Air Base, Philippines, July 7, 2025. The training conducted between the U.S. and Philippine Air Force strengthens both the ability to respond together for potential future crises, contingencies and natural disasters. (U.S. Air Force photo by Airman 1st Class Aden Brown) (Image blurred for operational security)

“We worked closely with the PAF pilots, and it was clear they are professional and highly capable aviators that employ their weapon systems with skill and precision,” said Capt. Tobey Fisher, 421st Mission Generation Force Element F-35A instructor pilot. “Additionally, this exercise afforded the 421st MGFE the opportunity to operate at a remote airfield with minimal support.”

The F-35A maintenance team supported Cope Thunder 25-2 with a lean, agile team, operating with roughly one-third of the personnel they typically have at their home station.

“It’s really cool to see such a small team come here and execute the mission,” said Maj. Clinton Bialcak, 421st Fighter Generation Squadron commander, referring to executing the F-35 maintenance mission. “I think everyone in the region, in the world and in the Department of Defense sees that we can do it and they can rely on us.”

The U.S. Air Force’s participation reflects ongoing efforts to strengthen coordination with regional allies and partners.

MIL Security OSI –

July 24, 2025

MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

Source: GlobeNewswire (MIL-OSI)

MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

“Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

Second Quarter 2025 Highlights

Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis¹, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.

Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.

Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.

Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.

Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.


	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Income statement:
Net interest income	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Provision for credit loss expense		2,462			1,376			1,171			1,044			2,369
Non-interest income (loss)		10,920			16,499			(28,954	)		11,511			10,485
Non-interest expense		39,417			39,306			44,935			39,272			37,522
Income tax expense (benefit)		3,752			4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643		$	23,943		$	(10,882	)	$	18,180		$	14,140

Per share data:
Basic earnings (loss) per share	$	0.47		$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted earnings (loss) per share		0.47			0.54			(0.25	)		0.41			0.32
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		18.06			17.72			17.46			17.27			16.62
Market value – high		15.88			17.76			18.76			16.57			12.74
Market value – low		12.92			15.00			14.57			11.89			11.29
Weighted average shares outstanding – Basic		43,794,490			43,777,109			43,721,211			43,712,059			43,712,059
Weighted average shares outstanding – Diluted		44,034,663			43,954,164			43,721,211			44,112,321			43,987,187
Common shares outstanding (end of period)		43,801,507			43,785,932			43,722,086			43,712,059			43,712,059

Key ratios:
Return on average assets		1.08	%		1.25	%	(0.56		)%		0.92	%		0.73	%
Return on average stockholders’ equity		13.24			12.44			(5.73	)		9.80			7.83
Total equity to total assets		10.34			10.18			9.79			9.52			9.18
Total loans to deposit ratio		87.52			85.21			87.75			83.92			85.70
Allowance for credit losses to HFI loans		1.09			1.07			1.07			1.10			1.08
Annualized net charge-offs of average total loans ⁽¹⁾		0.02			0.07			0.05			0.03			0.05
Efficiency ratio		59.48			57.16			185.89			67.22			67.29

Key metrics (Non-GAAP) ⁽²⁾
Net FTE interest margin		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%
Return on average tangible common equity		13.24			15.79			(7.35	)		12.65			10.18
Tangible common equity to tangible assets		8.37			8.19			7.83			7.58			7.22
Tangible book value per common share	$	14.32		$	13.96		$	13.68		$	13.46		$	12.80


⁽¹⁾ Average total loans includes loans held for investment and held for sale.
⁽²⁾ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin¹, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

Provision for Credit Losses

During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

Non-Interest Income

For the Quarter Ended	June 30,		March 31,			December 31,			September 30,		June 30,
(Dollars in Thousands)	2025		2025			2024			2024		2024
Non-interest Income
Service charges on deposit accounts	$	3,208	$	3,208		$	3,276		$	3,320	$	3,130
Wire transfer fees		69		71			124			123		113
Interchange fees		3,403		3,241			3,353			3,511		3,826
Fiduciary activities		1,251		1,326			1,313			1,394		1,372
Loss on sale of investment securities		—		(407	)		(39,140	)		—		—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622		896
Mortgage servicing income net of impairment		375		385			376			412		450
Increase in cash value of bank owned life insurance		346		335			335			349		318
Other income		1,049		7,264			338			780		380
Total non-interest income (loss)	$	10,920	$	16,499		$	(28,954	)	$	11,511	$	10,485

Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in Thousands)	2025		2025		2024		2024		2024
Non-interest Expense
Salaries and employee benefits	$	22,731	$	22,414	$	25,564	$	21,829	$	20,583
Net occupancy expenses		3,127		3,702		3,431		3,207		3,192
Data processing		2,951		2,872		2,841		2,977		2,579
Professional fees		735		826		736		676		714
Outside services and consultants		3,278		3,265		4,470		3,677		3,058
Loan expense		1,231		689		1,285		1,034		1,038
FDIC insurance expense		1,216		1,288		1,193		1,204		1,315
Core deposit intangible amortization		816		816		843		844		844
Merger related expenses		—		305		—		—		—
Other losses		245		228		371		297		515
Other expense		3,087		2,901		4,201		3,527		3,684
Total non-interest expense	$	39,417	$	39,306	$	44,935	$	39,272	$	37,522

Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.

Income Taxes

Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

Balance Sheet Highlights

Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

For the Quarter Ended	June 30,			March 31,			December 31,			September 30,
	2025*			2025			2024			2024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		14.48	%		14.26	%		13.91	%		13.45	%
Tier 1 capital (to risk-weighted assets)		12.52			12.33			12.00			11.63
Common equity tier 1 capital (to risk-weighted assets)		11.52			11.32			11.00			10.68
Tier 1 capital (to average assets)		9.59			9.25			8.88			9.02
*Preliminary estimate – may be subject to change

As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

Tangible common equity³ totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets¹ was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

Credit Quality

As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
	2025		2025			2024			2024			2024
Interest Income
Loans receivable	$	78,618	$	74,457		$	76,747		$	75,488		$	71,880
Investment securities – taxable		5,941		6,039			6,814			8,133			7,986
Investment securities – tax-exempt		6,088		6,192			6,301			6,310			6,377
Other		830		2,487			3,488			957			738
Total interest income		91,477		89,175			93,350			90,888			86,981
Interest Expense
Deposits		26,053		25,601			27,818			30,787			28,447
Borrowed funds		8,171		9,188			10,656			11,131			11,213
Subordinated notes		829		829			829			830			829
Junior subordinated debentures issued to capital trusts		1,070		1,290			920			1,230			1,213
Total interest expense		36,123		36,908			40,223			43,978			41,702
Net Interest Income		55,354		52,267			53,127			46,910			45,279
Provision for credit loss expense		2,462		1,376			1,171			1,044			2,369
Net Interest Income after Provision for Credit Losses		52,892		50,891			51,956			45,866			42,910
Non-interest Income
Service charges on deposit accounts		3,208		3,208			3,276			3,320			3,130
Wire transfer fees		69		71			124			123			113
Interchange fees		3,403		3,241			3,353			3,511			3,826
Fiduciary activities		1,251		1,326			1,313			1,394			1,372
Gains (losses) on sale of investment securities		—		(407	)		(39,140	)		—			—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622			896
Mortgage servicing income net of impairment		375		385			376			412			450
Increase in cash value of bank owned life insurance		346		335			335			349			318
Other income		1,049		7,264			338			780			380
Total non-interest income (loss)		10,920		16,499			(28,954	)		11,511			10,485
Non-interest Expense
Salaries and employee benefits		22,731		22,414			25,564			21,829			20,583
Net occupancy expenses		3,127		3,702			3,431			3,207			3,192
Data processing		2,951		2,872			2,841			2,977			2,579
Professional fees		735		826			736			676			714
Outside services and consultants		3,278		3,265			4,470			3,677			3,058
Loan expense		1,231		689			1,285			1,034			1,038
FDIC insurance expense		1,216		1,288			1,193			1,204			1,315
Core deposit intangible amortization		816		816			843			844			844
Merger related expenses		—		305			—			—			—
Other losses		245		228			371			297			515
Other expense		3,087		2,901			4,201			3,527			3,684
Total non-interest expense		39,417		39,306			44,935			39,272			37,522
Income (Loss) Before Income Taxes		24,395		28,084			(21,933	)		18,105			15,873
Income tax expense (benefit)		3,752		4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643	$	23,943		$	(10,882	)	$	18,180		$	14,140
Basic Earnings (Loss) Per Share	$	0.47	$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted Earnings (Loss) Per Share		0.47		0.54			(0.25	)		0.41			0.32

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Assets
Interest earning assets
Federal funds sold	$	2,024		$	—		$	—		$	113,912		$	34,453
Interest earning deposits		34,174			80,023			201,131			12,107			4,957
Interest earning time deposits		—			—			735			735			1,715
Federal Home Loan Bank stock		45,412			45,412			53,826			53,826			53,826
Investment securities, available for sale		231,999			231,431			233,677			541,170			527,054
Investment securities, held to maturity		1,819,087			1,843,851			1,867,690			1,888,379			1,904,281
Loans held for sale		2,994			3,253			67,597			2,069			2,440
Gross loans held for investment (HFI)		4,985,582			4,909,815			4,847,040			4,803,996			4,822,840
Total Interest earning assets		7,121,272			7,113,784			7,271,696			7,416,194			7,351,566
Non-interest earning assets
Allowance for credit losses		(54,399	)		(52,654	)		(51,980	)		(52,881	)		(52,215	)
Cash		101,719			89,643			92,300			108,815			106,691
Cash value of life insurance		37,755			37,409			37,450			37,115			36,773
Other assets		148,773			143,675			152,635			119,026			165,656
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		8,592			9,407			10,223			11,067			11,910
Premises and equipment, net		93,398			93,499			93,864			93,544			93,695
Interest receivable		39,730			38,663			39,747			39,366			43,240
Total non-interest earning assets		530,779			514,855			529,450			511,263			560,961
Total assets	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,526
Liabilities
Savings and money market deposits	$	3,385,413		$	3,393,371		$	3,446,681		$	3,420,827		$	3,364,726
Time deposits		1,193,180			1,245,088			1,089,153			1,220,653			1,178,389
Borrowings		880,336			812,218			1,142,340			1,142,744			1,229,165
Repurchase agreements		95,089			87,851			89,912			122,399			128,169
Subordinated notes		55,807			55,772			55,738			55,703			55,668
Junior subordinated debentures issued to capital trusts		57,583			57,531			57,477			57,423			57,369
Total interest earning liabilities		5,667,408			5,651,832			5,881,301			6,019,749			6,013,486
Non-interest bearing deposits		1,121,163			1,127,324			1,064,818			1,085,535			1,087,040
Interest payable		14,007			11,441			11,137			11,400			11,240
Other liabilities		58,621			61,981			80,308			55,951			74,096
Total liabilities		6,861,199			6,852,578			7,037,564			7,172,635			7,185,862
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		360,758			360,522			363,761			358,453			357,673
Retained earnings		466,497			452,945			436,122			454,050			442,977
Accumulated other comprehensive (loss)		(36,403	)		(37,406	)		(36,301	)		(57,681	)		(73,985	)
Total stockholders’ equity		790,852			776,061			763,582			754,822			726,665
Total liabilities and stockholders’ equity	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,527

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	June 30,		March 31,		December 31,		September 30,		June 30,		% Change
	2025		2025		2024		2024		2024		Q2’25 vs Q1’25			Q2’25 vs Q2’24
Loans:
Commercial real estate	$	2,321,951	$	2,262,910	$	2,202,858	$	2,105,459	$	2,117,772		3	%		10	%
Commercial & Industrial		976,740		918,541		875,297		808,600		786,788		6	%		24	%
Total commercial		3,298,691		3,181,451		3,078,155		2,914,059		2,904,560		4	%		14	%
Residential Real estate		786,026		801,726		802,909		801,356		797,956		(2	)%		(1	)%
Mortgage warehouse		—		—		—		80,437		68,917		—	%		(100	)%
Consumer		900,865		926,638		965,976		1,008,144		1,051,407		(3	)%		(14	)%
Total loans held for investment		4,985,582		4,909,815		4,847,040		4,803,996		4,822,840		2	%		3	%
Loans held for sale		2,994		3,253		67,597		2,069		2,440		(8	)%		23	%
Total loans	$	4,988,576	$	4,913,068	$	4,914,637	$	4,806,065	$	4,825,280		2	%		3	%

Deposits:
Interest bearing deposits	$	1,713,058	$	1,713,991	$	1,767,983	$	1,688,998	$	1,653,508		—	%		4	%
Savings and money market deposits		1,672,355		1,679,380		1,678,697		1,731,830		1,711,218		—	%		(2	)%
Time deposits		1,193,180		1,245,088		1,089,153		1,220,653		1,178,389		(4	)%		1	%
Total Interest bearing deposits		4,578,593		4,638,459		4,535,833		4,641,481		4,543,115		(1	)%		1	%
Non-interest bearing deposits
Non-interest bearing deposits		1,121,164		1,127,324		1,064,819		1,085,534		1,087,040		(1	)%		3	%
Total deposits	$	5,699,757	$	5,765,784	$	5,600,652	$	5,727,015	$	5,630,155		(1	)%		1	%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 2024
	Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾
Assets
Interest earning assets
Interest earning deposits (incl. Fed Funds Sold)	$	72,993		$	830		4.56	%	$	223,148		$	2,487		4.52	%	$	55,467		$	738		5.35	%
Federal Home Loan Bank stock		45,412			1,075		9.49	%		51,769			1,012		7.93	%		53,827			1,521		11.36	%
Investment securities – taxable (1)		959,238			4,867		2.03	%		974,109			5,027		2.09	%		1,309,305			6,465		1.99	%
Investment securities – non-taxable (1)		1,100,731			7,706		2.81	%		1,120,249			7,838		2.84	%		1,132,065			8,072		2.87	%
Total investment securities		2,059,969			12,573		2.45	%		2,094,358			12,865		2.49	%		2,441,370			14,537		2.39	%
Loans receivable (2) (3)		4,947,093			79,000		6.41	%		4,865,449			74,840		6.24	%		4,662,124			72,208		6.23	%
Total interest earning assets		7,125,467			93,478		5.26	%		7,234,724			91,204		5.11	%		7,212,788			89,004		4.96	%
Non-interest earning assets
Cash and due from banks		86,316								88,624								108,319
Allowance for credit losses		(52,560	)							(51,863	)							(50,334	)
Other assets		472,175								483,765								508,555
Total average assets	$	7,631,398							$	7,755,250							$	7,779,328

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,727,713		$	6,803		1.58	%	$	1,750,446		$	6,491		1.50	%	$	1,656,523		$	7,081		1.72	%
Saving and money market deposits		1,651,866			8,200		1.99	%		1,674,590			8,263		2.00	%		1,677,967			9,733		2.33	%
Time deposits		1,233,582			11,050		3.59	%		1,212,386			10,847		3.63	%		1,134,590			11,633		4.12	%
Total Deposits		4,613,161			26,053		2.27	%		4,637,422			25,601		2.24	%		4,469,080			28,447		2.56	%
Borrowings		847,862			7,777		3.68	%		971,496			8,772		3.66	%		1,184,172			10,278		3.49	%
Repurchase agreements		88,058			394		1.79	%		88,469			416		1.91	%		125,144			935		3.00	%
Subordinated notes		55,785			829		5.96	%		55,750			829		6.03	%		55,647			829		5.99	%
Junior subordinated debentures issued to capital trusts		57,550			1,070		7.46	%		57,497			1,290		9.10	%		57,335			1,213		8.51	%
Total interest bearing liabilities		5,662,416			36,123		2.56	%		5,810,634			36,908		2.58	%		5,891,378			41,702		2.85	%
Non-interest bearing liabilities
Demand deposits		1,114,982								1,085,826								1,080,676
Accrued interest payable and other liabilities		64,465								78,521								80,942
Stockholders’ equity		789,535								780,269								726,332
Total average liabilities and stockholders’ equity	$	7,631,398							$	7,755,250							$	7,779,328
Net FTE interest income (non-GAAP) (5)				$	57,355							$	54,296							$	47,302
Less FTE adjustments (4)					2,001								2,029								2,023
Net Interest Income				$	55,354							$	52,267							$	45,279
Net FTE interest margin (Non-GAAP) (4)(5)							3.23	%							3.04	%							2.64	%

⁽¹⁾ Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾ Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾ Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾ Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
⁽⁵⁾ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
⁽⁶⁾ Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			% Change
	2025			2025			2024			2024			2024			Q2’25 vs Q1’25			Q2’25 vs Q2’24
Non-accrual loans
Commercial	$	7,547		$	8,172		$	5,658		$	6,830		$	4,321			(8	)%		75	%
Residential Real estate		9,525			12,763			11,215			9,529			8,489			(25	)%		12	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		7,222			7,875			8,919			7,208			5,453			(8	)%		32	%
Total non-accrual loans		24,294			28,810			25,792			23,567			18,263			(16	)%		33	%
90 days and greater delinquent – accruing interest		2,113			1,582			1,166			819			1,039			34	%		103	%
Total non-performing loans	$	26,407		$	30,392		$	26,958		$	24,386		$	19,302			(13	)%		37	%

Other real estate owned
Commercial	$	176		$	360		$	407		$	1,158		$	1,111			(51	)%		(84	)%
Residential Real estate		463			641			—			—			—			—	%		—	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		480			34			17			36			57			1311	%		742	%
Total other real estate owned		1,119			1,035			424			1,194			1,168			8	%		(4	)%

Total non-performing assets	$	27,526		$	31,427		$	27,382		$	25,580		$	20,470			(12	)%		34	%

Loan data:
Accruing 30 to 89 days past due loans	$	31,401		$	19,034		$	23,075		$	18,087		$	19,785			65	%		59	%
Substandard loans		64,100			66,714			64,535			59,775			51,221			(4	)%		25	%
Net charge-offs (recoveries)
Commercial	$	84		$	(47	)	$	(32	)	$	(52	)	$	57			(279	)%		47	%
Residential Real estate		52			(47	)		(10	)		(9	)		(4	)		(211	)%		(1400	)%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		118			963			668			439			534			(88	)%		(78	)%
Total net charge-offs	$	254		$	869		$	626		$	378		$	587			(71	)%		(57	)%

Allowance for credit losses
Commercial	$	34,413		$	32,640		$	30,953		$	32,854		$	31,941			5	%		8	%
Residential Real estate		3,229			3,167			2,715			2,675			2,588			2	%		25	%
Mortgage warehouse		—			—			—			862			736			—	%		(100	)%
Consumer		16,757			16,847			18,312			16,490			16,950			(1	)%		(1	)%
Total allowance for credit losses	$	54,399		$	52,654		$	51,980		$	52,881		$	52,215			3	%		4	%

Credit quality ratios
Non-accrual loans to HFI loans		0.49	%		0.59	%		0.53	%		0.49	%		0.38	%
Non-performing assets to total assets		0.36	%		0.41	%		0.35	%		0.32	%		0.26	%
Annualized net charge-offs of average total loans		0.02	%		0.07	%		0.05	%		0.03	%		0.05	%
Allowance for credit losses to HFI loans		1.09	%		1.07	%		1.07	%		1.10	%		1.08	%

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
(Dollars in Thousands, Unaudited)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Interest income (GAAP)	(A)	$	91,477		$	89,175		$	93,350		$	90,888		$	86,981
Taxable-equivalent adjustment:
Investment securities – tax exempt (1)			1,619			1,646			1,675			1,677			1,695
Loan receivable (2)			382			383			395			340			328
Interest income (non-GAAP)	(B)		93,478			91,204			95,420			92,905			89,004
Interest expense (GAAP)	(C)		36,123			36,908			40,223			43,978			41,702
Net interest income (GAAP)	(D) =(A) – (C)	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Net FTE interest income (non-GAAP)	(E) = (B) – (C)	$	57,355		$	54,296		$	55,197		$	48,927		$	47,302
Average interest earning assets	(F)		7,125,467			7,234,724			7,396,178			7,330,263			7,212,788
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%

⁽¹⁾ The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
⁽²⁾ The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024

Net income (loss) (GAAP)	(A)	$	20,643		$	23,941		$	(10,882	)	$	18,180		$	14,140

Average stockholders’ equity	(B)	$	789,535		$	780,269		$	755,340		$	738,372		$	726,332
Average intangible assets	(C)		164,320			165,138			165,973			166,819			167,659
Average tangible equity (Non-GAAP)	(D) = (B) – (C)	$	625,215		$	615,131		$	589,367		$	571,553		$	558,673
Return on average tangible common equity (“ROACE”) (non-GAAP)	(E) = (A*) / (D)		13.24	%		15.48	%	(7.35		)%		12.65	%		10.18	%
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Total stockholders’ equity (GAAP)	(A)	$	790,852		$	776,061		$	763,582		$	754,822		$	726,665
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050		$	611,443		$	598,148		$	588,544		$	559,544

Total assets (GAAP)	(D)	$	7,652,051		$	7,628,636		$	7,801,146		$	7,927,457		$	7,912,527
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible assets (non-GAAP)	(E) = (D) – (B)	$	7,488,249		$	7,464,018		$	7,635,712		$	7,761,179		$	7,745,406

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.37	%		8.19	%		7.83	%		7.58	%		7.22	%

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,		March 31,		December 31,		September 30,		June 30,
		2025		2025		2024		2024		2024
Total stockholders’ equity (GAAP)	(A)	$	790,852	$	776,061	$	763,582	$	754,822	$	726,665
Intangible assets (end of period)	(B)		163,802		164,618		165,434		166,278		167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050	$	611,443	$	598,148	$	588,544	$	559,544
Common shares outstanding	(D)		43,801,507		43,786,000		43,722,086		43,712,059		43,712,059

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	14.32	$	13.96	$	13.68	$	13.46	$	12.80

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	July 23, 2025

The MIL Network –

July 24, 2025

MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

Source: GlobeNewswire (MIL-OSI)

MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

“Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

Second Quarter 2025 Highlights

Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis¹, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.

Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.

Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.

Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.

Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.


	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Income statement:
Net interest income	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Provision for credit loss expense		2,462			1,376			1,171			1,044			2,369
Non-interest income (loss)		10,920			16,499			(28,954	)		11,511			10,485
Non-interest expense		39,417			39,306			44,935			39,272			37,522
Income tax expense (benefit)		3,752			4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643		$	23,943		$	(10,882	)	$	18,180		$	14,140

Per share data:
Basic earnings (loss) per share	$	0.47		$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted earnings (loss) per share		0.47			0.54			(0.25	)		0.41			0.32
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		18.06			17.72			17.46			17.27			16.62
Market value – high		15.88			17.76			18.76			16.57			12.74
Market value – low		12.92			15.00			14.57			11.89			11.29
Weighted average shares outstanding – Basic		43,794,490			43,777,109			43,721,211			43,712,059			43,712,059
Weighted average shares outstanding – Diluted		44,034,663			43,954,164			43,721,211			44,112,321			43,987,187
Common shares outstanding (end of period)		43,801,507			43,785,932			43,722,086			43,712,059			43,712,059

Key ratios:
Return on average assets		1.08	%		1.25	%	(0.56		)%		0.92	%		0.73	%
Return on average stockholders’ equity		13.24			12.44			(5.73	)		9.80			7.83
Total equity to total assets		10.34			10.18			9.79			9.52			9.18
Total loans to deposit ratio		87.52			85.21			87.75			83.92			85.70
Allowance for credit losses to HFI loans		1.09			1.07			1.07			1.10			1.08
Annualized net charge-offs of average total loans ⁽¹⁾		0.02			0.07			0.05			0.03			0.05
Efficiency ratio		59.48			57.16			185.89			67.22			67.29

Key metrics (Non-GAAP) ⁽²⁾
Net FTE interest margin		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%
Return on average tangible common equity		13.24			15.79			(7.35	)		12.65			10.18
Tangible common equity to tangible assets		8.37			8.19			7.83			7.58			7.22
Tangible book value per common share	$	14.32		$	13.96		$	13.68		$	13.46		$	12.80


⁽¹⁾ Average total loans includes loans held for investment and held for sale.
⁽²⁾ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin¹, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

Provision for Credit Losses

During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

Non-Interest Income

For the Quarter Ended	June 30,		March 31,			December 31,			September 30,		June 30,
(Dollars in Thousands)	2025		2025			2024			2024		2024
Non-interest Income
Service charges on deposit accounts	$	3,208	$	3,208		$	3,276		$	3,320	$	3,130
Wire transfer fees		69		71			124			123		113
Interchange fees		3,403		3,241			3,353			3,511		3,826
Fiduciary activities		1,251		1,326			1,313			1,394		1,372
Loss on sale of investment securities		—		(407	)		(39,140	)		—		—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622		896
Mortgage servicing income net of impairment		375		385			376			412		450
Increase in cash value of bank owned life insurance		346		335			335			349		318
Other income		1,049		7,264			338			780		380
Total non-interest income (loss)	$	10,920	$	16,499		$	(28,954	)	$	11,511	$	10,485

Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in Thousands)	2025		2025		2024		2024		2024
Non-interest Expense
Salaries and employee benefits	$	22,731	$	22,414	$	25,564	$	21,829	$	20,583
Net occupancy expenses		3,127		3,702		3,431		3,207		3,192
Data processing		2,951		2,872		2,841		2,977		2,579
Professional fees		735		826		736		676		714
Outside services and consultants		3,278		3,265		4,470		3,677		3,058
Loan expense		1,231		689		1,285		1,034		1,038
FDIC insurance expense		1,216		1,288		1,193		1,204		1,315
Core deposit intangible amortization		816		816		843		844		844
Merger related expenses		—		305		—		—		—
Other losses		245		228		371		297		515
Other expense		3,087		2,901		4,201		3,527		3,684
Total non-interest expense	$	39,417	$	39,306	$	44,935	$	39,272	$	37,522

Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.

Income Taxes

Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

Balance Sheet Highlights

Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

For the Quarter Ended	June 30,			March 31,			December 31,			September 30,
	2025*			2025			2024			2024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		14.48	%		14.26	%		13.91	%		13.45	%
Tier 1 capital (to risk-weighted assets)		12.52			12.33			12.00			11.63
Common equity tier 1 capital (to risk-weighted assets)		11.52			11.32			11.00			10.68
Tier 1 capital (to average assets)		9.59			9.25			8.88			9.02
*Preliminary estimate – may be subject to change

As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

Tangible common equity³ totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets¹ was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

Credit Quality

As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
	2025		2025			2024			2024			2024
Interest Income
Loans receivable	$	78,618	$	74,457		$	76,747		$	75,488		$	71,880
Investment securities – taxable		5,941		6,039			6,814			8,133			7,986
Investment securities – tax-exempt		6,088		6,192			6,301			6,310			6,377
Other		830		2,487			3,488			957			738
Total interest income		91,477		89,175			93,350			90,888			86,981
Interest Expense
Deposits		26,053		25,601			27,818			30,787			28,447
Borrowed funds		8,171		9,188			10,656			11,131			11,213
Subordinated notes		829		829			829			830			829
Junior subordinated debentures issued to capital trusts		1,070		1,290			920			1,230			1,213
Total interest expense		36,123		36,908			40,223			43,978			41,702
Net Interest Income		55,354		52,267			53,127			46,910			45,279
Provision for credit loss expense		2,462		1,376			1,171			1,044			2,369
Net Interest Income after Provision for Credit Losses		52,892		50,891			51,956			45,866			42,910
Non-interest Income
Service charges on deposit accounts		3,208		3,208			3,276			3,320			3,130
Wire transfer fees		69		71			124			123			113
Interchange fees		3,403		3,241			3,353			3,511			3,826
Fiduciary activities		1,251		1,326			1,313			1,394			1,372
Gains (losses) on sale of investment securities		—		(407	)		(39,140	)		—			—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622			896
Mortgage servicing income net of impairment		375		385			376			412			450
Increase in cash value of bank owned life insurance		346		335			335			349			318
Other income		1,049		7,264			338			780			380
Total non-interest income (loss)		10,920		16,499			(28,954	)		11,511			10,485
Non-interest Expense
Salaries and employee benefits		22,731		22,414			25,564			21,829			20,583
Net occupancy expenses		3,127		3,702			3,431			3,207			3,192
Data processing		2,951		2,872			2,841			2,977			2,579
Professional fees		735		826			736			676			714
Outside services and consultants		3,278		3,265			4,470			3,677			3,058
Loan expense		1,231		689			1,285			1,034			1,038
FDIC insurance expense		1,216		1,288			1,193			1,204			1,315
Core deposit intangible amortization		816		816			843			844			844
Merger related expenses		—		305			—			—			—
Other losses		245		228			371			297			515
Other expense		3,087		2,901			4,201			3,527			3,684
Total non-interest expense		39,417		39,306			44,935			39,272			37,522
Income (Loss) Before Income Taxes		24,395		28,084			(21,933	)		18,105			15,873
Income tax expense (benefit)		3,752		4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643	$	23,943		$	(10,882	)	$	18,180		$	14,140
Basic Earnings (Loss) Per Share	$	0.47	$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted Earnings (Loss) Per Share		0.47		0.54			(0.25	)		0.41			0.32

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Assets
Interest earning assets
Federal funds sold	$	2,024		$	—		$	—		$	113,912		$	34,453
Interest earning deposits		34,174			80,023			201,131			12,107			4,957
Interest earning time deposits		—			—			735			735			1,715
Federal Home Loan Bank stock		45,412			45,412			53,826			53,826			53,826
Investment securities, available for sale		231,999			231,431			233,677			541,170			527,054
Investment securities, held to maturity		1,819,087			1,843,851			1,867,690			1,888,379			1,904,281
Loans held for sale		2,994			3,253			67,597			2,069			2,440
Gross loans held for investment (HFI)		4,985,582			4,909,815			4,847,040			4,803,996			4,822,840
Total Interest earning assets		7,121,272			7,113,784			7,271,696			7,416,194			7,351,566
Non-interest earning assets
Allowance for credit losses		(54,399	)		(52,654	)		(51,980	)		(52,881	)		(52,215	)
Cash		101,719			89,643			92,300			108,815			106,691
Cash value of life insurance		37,755			37,409			37,450			37,115			36,773
Other assets		148,773			143,675			152,635			119,026			165,656
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		8,592			9,407			10,223			11,067			11,910
Premises and equipment, net		93,398			93,499			93,864			93,544			93,695
Interest receivable		39,730			38,663			39,747			39,366			43,240
Total non-interest earning assets		530,779			514,855			529,450			511,263			560,961
Total assets	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,526
Liabilities
Savings and money market deposits	$	3,385,413		$	3,393,371		$	3,446,681		$	3,420,827		$	3,364,726
Time deposits		1,193,180			1,245,088			1,089,153			1,220,653			1,178,389
Borrowings		880,336			812,218			1,142,340			1,142,744			1,229,165
Repurchase agreements		95,089			87,851			89,912			122,399			128,169
Subordinated notes		55,807			55,772			55,738			55,703			55,668
Junior subordinated debentures issued to capital trusts		57,583			57,531			57,477			57,423			57,369
Total interest earning liabilities		5,667,408			5,651,832			5,881,301			6,019,749			6,013,486
Non-interest bearing deposits		1,121,163			1,127,324			1,064,818			1,085,535			1,087,040
Interest payable		14,007			11,441			11,137			11,400			11,240
Other liabilities		58,621			61,981			80,308			55,951			74,096
Total liabilities		6,861,199			6,852,578			7,037,564			7,172,635			7,185,862
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		360,758			360,522			363,761			358,453			357,673
Retained earnings		466,497			452,945			436,122			454,050			442,977
Accumulated other comprehensive (loss)		(36,403	)		(37,406	)		(36,301	)		(57,681	)		(73,985	)
Total stockholders’ equity		790,852			776,061			763,582			754,822			726,665
Total liabilities and stockholders’ equity	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,527

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	June 30,		March 31,		December 31,		September 30,		June 30,		% Change
	2025		2025		2024		2024		2024		Q2’25 vs Q1’25			Q2’25 vs Q2’24
Loans:
Commercial real estate	$	2,321,951	$	2,262,910	$	2,202,858	$	2,105,459	$	2,117,772		3	%		10	%
Commercial & Industrial		976,740		918,541		875,297		808,600		786,788		6	%		24	%
Total commercial		3,298,691		3,181,451		3,078,155		2,914,059		2,904,560		4	%		14	%
Residential Real estate		786,026		801,726		802,909		801,356		797,956		(2	)%		(1	)%
Mortgage warehouse		—		—		—		80,437		68,917		—	%		(100	)%
Consumer		900,865		926,638		965,976		1,008,144		1,051,407		(3	)%		(14	)%
Total loans held for investment		4,985,582		4,909,815		4,847,040		4,803,996		4,822,840		2	%		3	%
Loans held for sale		2,994		3,253		67,597		2,069		2,440		(8	)%		23	%
Total loans	$	4,988,576	$	4,913,068	$	4,914,637	$	4,806,065	$	4,825,280		2	%		3	%

Deposits:
Interest bearing deposits	$	1,713,058	$	1,713,991	$	1,767,983	$	1,688,998	$	1,653,508		—	%		4	%
Savings and money market deposits		1,672,355		1,679,380		1,678,697		1,731,830		1,711,218		—	%		(2	)%
Time deposits		1,193,180		1,245,088		1,089,153		1,220,653		1,178,389		(4	)%		1	%
Total Interest bearing deposits		4,578,593		4,638,459		4,535,833		4,641,481		4,543,115		(1	)%		1	%
Non-interest bearing deposits
Non-interest bearing deposits		1,121,164		1,127,324		1,064,819		1,085,534		1,087,040		(1	)%		3	%
Total deposits	$	5,699,757	$	5,765,784	$	5,600,652	$	5,727,015	$	5,630,155		(1	)%		1	%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 2024
	Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾
Assets
Interest earning assets
Interest earning deposits (incl. Fed Funds Sold)	$	72,993		$	830		4.56	%	$	223,148		$	2,487		4.52	%	$	55,467		$	738		5.35	%
Federal Home Loan Bank stock		45,412			1,075		9.49	%		51,769			1,012		7.93	%		53,827			1,521		11.36	%
Investment securities – taxable (1)		959,238			4,867		2.03	%		974,109			5,027		2.09	%		1,309,305			6,465		1.99	%
Investment securities – non-taxable (1)		1,100,731			7,706		2.81	%		1,120,249			7,838		2.84	%		1,132,065			8,072		2.87	%
Total investment securities		2,059,969			12,573		2.45	%		2,094,358			12,865		2.49	%		2,441,370			14,537		2.39	%
Loans receivable (2) (3)		4,947,093			79,000		6.41	%		4,865,449			74,840		6.24	%		4,662,124			72,208		6.23	%
Total interest earning assets		7,125,467			93,478		5.26	%		7,234,724			91,204		5.11	%		7,212,788			89,004		4.96	%
Non-interest earning assets
Cash and due from banks		86,316								88,624								108,319
Allowance for credit losses		(52,560	)							(51,863	)							(50,334	)
Other assets		472,175								483,765								508,555
Total average assets	$	7,631,398							$	7,755,250							$	7,779,328

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,727,713		$	6,803		1.58	%	$	1,750,446		$	6,491		1.50	%	$	1,656,523		$	7,081		1.72	%
Saving and money market deposits		1,651,866			8,200		1.99	%		1,674,590			8,263		2.00	%		1,677,967			9,733		2.33	%
Time deposits		1,233,582			11,050		3.59	%		1,212,386			10,847		3.63	%		1,134,590			11,633		4.12	%
Total Deposits		4,613,161			26,053		2.27	%		4,637,422			25,601		2.24	%		4,469,080			28,447		2.56	%
Borrowings		847,862			7,777		3.68	%		971,496			8,772		3.66	%		1,184,172			10,278		3.49	%
Repurchase agreements		88,058			394		1.79	%		88,469			416		1.91	%		125,144			935		3.00	%
Subordinated notes		55,785			829		5.96	%		55,750			829		6.03	%		55,647			829		5.99	%
Junior subordinated debentures issued to capital trusts		57,550			1,070		7.46	%		57,497			1,290		9.10	%		57,335			1,213		8.51	%
Total interest bearing liabilities		5,662,416			36,123		2.56	%		5,810,634			36,908		2.58	%		5,891,378			41,702		2.85	%
Non-interest bearing liabilities
Demand deposits		1,114,982								1,085,826								1,080,676
Accrued interest payable and other liabilities		64,465								78,521								80,942
Stockholders’ equity		789,535								780,269								726,332
Total average liabilities and stockholders’ equity	$	7,631,398							$	7,755,250							$	7,779,328
Net FTE interest income (non-GAAP) (5)				$	57,355							$	54,296							$	47,302
Less FTE adjustments (4)					2,001								2,029								2,023
Net Interest Income				$	55,354							$	52,267							$	45,279
Net FTE interest margin (Non-GAAP) (4)(5)							3.23	%							3.04	%							2.64	%

⁽¹⁾ Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾ Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾ Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾ Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
⁽⁵⁾ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
⁽⁶⁾ Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			% Change
	2025			2025			2024			2024			2024			Q2’25 vs Q1’25			Q2’25 vs Q2’24
Non-accrual loans
Commercial	$	7,547		$	8,172		$	5,658		$	6,830		$	4,321			(8	)%		75	%
Residential Real estate		9,525			12,763			11,215			9,529			8,489			(25	)%		12	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		7,222			7,875			8,919			7,208			5,453			(8	)%		32	%
Total non-accrual loans		24,294			28,810			25,792			23,567			18,263			(16	)%		33	%
90 days and greater delinquent – accruing interest		2,113			1,582			1,166			819			1,039			34	%		103	%
Total non-performing loans	$	26,407		$	30,392		$	26,958		$	24,386		$	19,302			(13	)%		37	%

Other real estate owned
Commercial	$	176		$	360		$	407		$	1,158		$	1,111			(51	)%		(84	)%
Residential Real estate		463			641			—			—			—			—	%		—	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		480			34			17			36			57			1311	%		742	%
Total other real estate owned		1,119			1,035			424			1,194			1,168			8	%		(4	)%

Total non-performing assets	$	27,526		$	31,427		$	27,382		$	25,580		$	20,470			(12	)%		34	%

Loan data:
Accruing 30 to 89 days past due loans	$	31,401		$	19,034		$	23,075		$	18,087		$	19,785			65	%		59	%
Substandard loans		64,100			66,714			64,535			59,775			51,221			(4	)%		25	%
Net charge-offs (recoveries)
Commercial	$	84		$	(47	)	$	(32	)	$	(52	)	$	57			(279	)%		47	%
Residential Real estate		52			(47	)		(10	)		(9	)		(4	)		(211	)%		(1400	)%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		118			963			668			439			534			(88	)%		(78	)%
Total net charge-offs	$	254		$	869		$	626		$	378		$	587			(71	)%		(57	)%

Allowance for credit losses
Commercial	$	34,413		$	32,640		$	30,953		$	32,854		$	31,941			5	%		8	%
Residential Real estate		3,229			3,167			2,715			2,675			2,588			2	%		25	%
Mortgage warehouse		—			—			—			862			736			—	%		(100	)%
Consumer		16,757			16,847			18,312			16,490			16,950			(1	)%		(1	)%
Total allowance for credit losses	$	54,399		$	52,654		$	51,980		$	52,881		$	52,215			3	%		4	%

Credit quality ratios
Non-accrual loans to HFI loans		0.49	%		0.59	%		0.53	%		0.49	%		0.38	%
Non-performing assets to total assets		0.36	%		0.41	%		0.35	%		0.32	%		0.26	%
Annualized net charge-offs of average total loans		0.02	%		0.07	%		0.05	%		0.03	%		0.05	%
Allowance for credit losses to HFI loans		1.09	%		1.07	%		1.07	%		1.10	%		1.08	%

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
(Dollars in Thousands, Unaudited)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Interest income (GAAP)	(A)	$	91,477		$	89,175		$	93,350		$	90,888		$	86,981
Taxable-equivalent adjustment:
Investment securities – tax exempt (1)			1,619			1,646			1,675			1,677			1,695
Loan receivable (2)			382			383			395			340			328
Interest income (non-GAAP)	(B)		93,478			91,204			95,420			92,905			89,004
Interest expense (GAAP)	(C)		36,123			36,908			40,223			43,978			41,702
Net interest income (GAAP)	(D) =(A) – (C)	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Net FTE interest income (non-GAAP)	(E) = (B) – (C)	$	57,355		$	54,296		$	55,197		$	48,927		$	47,302
Average interest earning assets	(F)		7,125,467			7,234,724			7,396,178			7,330,263			7,212,788
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%

⁽¹⁾ The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
⁽²⁾ The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024

Net income (loss) (GAAP)	(A)	$	20,643		$	23,941		$	(10,882	)	$	18,180		$	14,140

Average stockholders’ equity	(B)	$	789,535		$	780,269		$	755,340		$	738,372		$	726,332
Average intangible assets	(C)		164,320			165,138			165,973			166,819			167,659
Average tangible equity (Non-GAAP)	(D) = (B) – (C)	$	625,215		$	615,131		$	589,367		$	571,553		$	558,673
Return on average tangible common equity (“ROACE”) (non-GAAP)	(E) = (A*) / (D)		13.24	%		15.48	%	(7.35		)%		12.65	%		10.18	%
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Total stockholders’ equity (GAAP)	(A)	$	790,852		$	776,061		$	763,582		$	754,822		$	726,665
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050		$	611,443		$	598,148		$	588,544		$	559,544

Total assets (GAAP)	(D)	$	7,652,051		$	7,628,636		$	7,801,146		$	7,927,457		$	7,912,527
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible assets (non-GAAP)	(E) = (D) – (B)	$	7,488,249		$	7,464,018		$	7,635,712		$	7,761,179		$	7,745,406

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.37	%		8.19	%		7.83	%		7.58	%		7.22	%

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,		March 31,		December 31,		September 30,		June 30,
		2025		2025		2024		2024		2024
Total stockholders’ equity (GAAP)	(A)	$	790,852	$	776,061	$	763,582	$	754,822	$	726,665
Intangible assets (end of period)	(B)		163,802		164,618		165,434		166,278		167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050	$	611,443	$	598,148	$	588,544	$	559,544
Common shares outstanding	(D)		43,801,507		43,786,000		43,722,086		43,712,059		43,712,059

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	14.32	$	13.96	$	13.68	$	13.46	$	12.80

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	July 23, 2025

The MIL Network –

July 24, 2025

MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

Source: GlobeNewswire (MIL-OSI)

MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

Second Quarter 2025 Highlights:

Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
The efficiency ratio totaled 53.99% for the quarter.

“Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity.”

Second Quarter Financial Results:

First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.


CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	June 30,
		2025			2024
ASSETS
Cash and due from banks	$	81,567		$	105,372
Interest-bearing deposits		223,343			168,528
Investment securities available for sale		1,358,130			1,618,893
Investment securities held to maturity, net of allowance for credit losses		2,022,826			2,134,195
Loans held for sale		28,783			32,292
Loans		13,296,759			12,639,650
Less: Allowance for credit losses – loans		(195,316	)		(189,537	)
Net loans		13,101,443			12,450,113
Premises and equipment		122,808			133,245
Federal Home Loan Bank stock		47,290			41,738
Interest receivable		93,258			97,546
Goodwill		712,002			712,002
Other intangibles		16,797			23,371
Cash surrender value of life insurance		305,695			306,379
Other real estate owned		177			4,824
Tax asset, deferred and receivable		97,749			107,080
Other assets		380,909			367,845
TOTAL ASSETS	$	18,592,777		$	18,303,423
LIABILITIES
Deposits:
Noninterest-bearing	$	2,197,416		$	2,303,313
Interest-bearing		12,600,162			12,265,757
Total Deposits		14,797,578			14,569,070
Borrowings:
Federal funds purchased		85,000			147,229
Securities sold under repurchase agreements		114,758			100,451
Federal Home Loan Bank advances		898,702			832,703
Subordinated debentures and other borrowings		62,617			93,589
Total Borrowings		1,161,077			1,173,972
Interest payable		16,174			18,554
Other liabilities		269,996			329,302
Total Liabilities		16,244,825			16,090,898
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding – 57,272,433 and 58,045,653 shares		7,159			7,256
Additional paid-in capital		1,163,170			1,191,193
Retained earnings		1,342,473			1,200,930
Accumulated other comprehensive loss		(189,975	)		(211,979	)
Total Stockholders’ Equity		2,347,952			2,212,525
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,592,777		$	18,303,423

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended						Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)	June 30,						June 30,
		2025			2024			2025			2024
INTEREST INCOME
Loans:
Taxable	$	195,173		$	201,413		$	382,901		$	399,436
Tax-exempt		10,805			8,430			21,337			16,620
Investment securities:
Taxable		8,266			9,051			16,638			17,799
Tax-exempt		12,516			13,613			25,033			27,224
Deposits with financial institutions		1,892			2,995			4,264			9,488
Federal Home Loan Bank stock		1,083			879			2,080			1,714
Total Interest Income		229,735			236,381			452,253			472,281
INTEREST EXPENSE
Deposits		84,241			99,151			164,788			197,436
Federal funds purchased		965			126			1,777			126
Securities sold under repurchase agreements		663			645			1,405			1,677
Federal Home Loan Bank advances		9,714			6,398			19,078			13,171
Subordinated debentures and other borrowings		1,138			1,490			1,921			4,237
Total Interest Expense		96,721			107,810			188,969			216,647
NET INTEREST INCOME		133,014			128,571			263,284			255,634
Provision for credit losses		5,600			24,500			9,800			26,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		127,414			104,071			253,484			229,134
NONINTEREST INCOME
Service charges on deposit accounts		8,566			8,214			16,638			16,121
Fiduciary and wealth management fees		8,831			8,825			17,475			17,025
Card payment fees		4,932			4,739			9,458			9,239
Net gains and fees on sales of loans		5,849			5,141			10,871			8,395
Derivative hedge fees		831			489			1,235			752
Other customer fees		401			460			816			887
Earnings on cash surrender value of life insurance		1,913			1,929			4,092			3,521
Net realized losses on sales of available for sale securities		(1	)		(49	)		(8	)		(51	)
Other income (loss)		(19	)		1,586			774			2,083
Total Noninterest Income		31,303			31,334			61,351			57,972
NONINTEREST EXPENSES
Salaries and employee benefits		54,527			52,214			109,509			110,507
Net occupancy		6,845			6,746			14,061			14,058
Equipment		6,927			6,599			13,935			12,825
Marketing		1,997			1,773			3,350			2,971
Outside data processing fees		7,107			7,072			13,036			13,961
Printing and office supplies		272			354			619			707
Intangible asset amortization		1,505			1,771			3,031			3,728
FDIC assessments		3,552			3,278			7,200			7,565
Other real estate owned and foreclosure expenses		29			373			629			907
Professional and other outside services		3,741			3,822			7,002			7,774
Other expenses		7,096			7,411			14,128			13,345
Total Noninterest Expenses		93,598			91,413			186,500			188,348
INCOME BEFORE INCOME TAX		65,119			43,992			128,335			98,758
Income tax expense		8,287			4,067			16,164			10,892
NET INCOME		56,832			39,925			112,171			87,866
Preferred stock dividends		469			469			938			938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,363		$	39,456		$	111,233		$	86,928


PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.98		$	0.68		$	1.93		$	1.48
Diluted Net Income Available to Common Stockholders	$	0.98		$	0.68		$	1.92		$	1.48
Cash Dividends Paid to Common Stockholders	$	0.36		$	0.35		$	0.71		$	0.69
Tangible Common Book Value Per Share	$	27.90		$	25.10		$	27.90		$	25.10
Average Diluted Common Shares Outstanding (in thousands)		57,773			58,328			58,005			58,800

FINANCIAL HIGHLIGHTS
(Dollars In Thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024
NET CHARGE-OFFS	$	2,315		$	39,644		$	7,241		$	41,897

AVERAGE BALANCES:
Total Assets	$	18,508,785		$	18,332,159		$	18,425,723		$	18,381,340
Total Loans		13,211,729			12,620,530			13,077,288			12,548,798
Total Earning Assets		17,158,984			17,013,984			17,060,278			17,068,917
Total Deposits		14,632,113			14,895,867			14,526,314			14,888,536
Total Stockholders’ Equity		2,340,010			2,203,361			2,340,440			2,222,750

FINANCIAL RATIOS:
Return on Average Assets		1.23	%		0.87	%		1.22	%		0.96	%
Return on Average Stockholders’ Equity		9.63			7.16			9.51			7.82
Return on Tangible Common Stockholders’ Equity		14.49			11.29			14.30			12.26
Average Earning Assets to Average Assets		92.71			92.81			92.59			92.86
Allowance for Credit Losses – Loans as % of Total Loans		1.47			1.50			1.47			1.50
Net Charge-offs as % of Average Loans (Annualized)		0.07			1.26			0.11			0.67
Average Stockholders’ Equity to Average Assets		12.64			12.02			12.70			12.09
Tax Equivalent Yield on Average Earning Assets		5.50			5.69			5.45			5.67
Interest Expense/Average Earning Assets		2.25			2.53			2.22			2.54
Net Interest Margin (FTE) on Average Earning Assets		3.25			3.16			3.23			3.13
Efficiency Ratio		53.99			53.84			54.26			56.47

ASSET QUALITY
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Nonaccrual Loans	$	67,358		$	81,922		$	73,773		$	59,088		$	61,906
Other Real Estate Owned and Repossessions		177			4,966			4,948			5,247			4,824
Nonperforming Assets (NPA)		67,535			86,888			78,721			64,335			66,730
90+ Days Delinquent		4,443			4,280			5,902			14,105			1,686
NPAs & 90 Day Delinquent	$	71,978		$	91,168		$	84,623		$	78,440		$	68,416

Allowance for Credit Losses – Loans	$	195,316		$	192,031		$	192,757		$	187,828		$	189,537
Quarterly Net Charge-offs		2,315			4,926			771			6,709			39,644
NPAs / Actual Assets %		0.36	%		0.47	%		0.43	%		0.35	%		0.36	%
NPAs & 90 Day / Actual Assets %		0.39	%		0.49	%		0.46	%		0.43	%		0.37	%
NPAs / Actual Loans and OREO %		0.51	%		0.67	%		0.61	%		0.51	%		0.53	%
Allowance for Credit Losses – Loans / Actual Loans (%)		1.47	%		1.47	%		1.50	%		1.48	%		1.50	%
Quarterly Net Charge-offs as % of Average Loans (Annualized)		0.07	%		0.15	%		0.02	%		0.21	%		1.26	%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
ASSETS
Cash and due from banks	$	81,567		$	86,113		$	87,616		$	84,719		$	105,372
Interest-bearing deposits		223,343			331,534			298,891			359,126			168,528
Investment securities available for sale		1,358,130			1,378,489			1,386,475			1,553,496			1,618,893
Investment securities held to maturity, net of allowance for credit losses		2,022,826			2,048,632			2,074,220			2,108,649			2,134,195
Loans held for sale		28,783			23,004			18,663			40,652			32,292
Loans		13,296,759			13,004,905			12,854,359			12,646,808			12,639,650
Less: Allowance for credit losses – loans		(195,316	)		(192,031	)		(192,757	)		(187,828	)		(189,537	)
Net loans		13,101,443			12,812,874			12,661,602			12,458,980			12,450,113
Premises and equipment		122,808			128,749			129,743			129,582			133,245
Federal Home Loan Bank stock		47,290			45,006			41,690			41,716			41,738
Interest receivable		93,258			88,352			91,829			92,055			97,546
Goodwill		712,002			712,002			712,002			712,002			712,002
Other intangibles		16,797			18,302			19,828			21,599			23,371
Cash surrender value of life insurance		305,695			304,918			304,906			304,613			306,379
Other real estate owned		177			4,966			4,948			5,247			4,824
Tax asset, deferred and receivable		97,749			87,665			92,387			86,732			107,080
Other assets		380,909			369,181			387,169			348,384			367,845
TOTAL ASSETS	$	18,592,777		$	18,439,787		$	18,311,969		$	18,347,552		$	18,303,423
LIABILITIES
Deposits:
Noninterest-bearing	$	2,197,416		$	2,185,057		$	2,325,579		$	2,334,197		$	2,303,313
Interest-bearing		12,600,162			12,276,921			12,196,047			12,030,903			12,265,757
Total Deposits		14,797,578			14,461,978			14,521,626			14,365,100			14,569,070
Borrowings:
Federal funds purchased		85,000			185,000			99,226			30,000			147,229
Securities sold under repurchase agreements		114,758			122,947			142,876			124,894			100,451
Federal Home Loan Bank advances		898,702			972,478			822,554			832,629			832,703
Subordinated debentures and other borrowings		62,617			62,619			93,529			93,562			93,589
Total Borrowings		1,161,077			1,343,044			1,158,185			1,081,085			1,173,972
Deposits and other liabilities held for sale		—			—			—			288,476			—
Interest payable		16,174			13,304			16,102			18,089			18,554
Other liabilities		269,996			289,247			311,073			292,429			329,302
Total Liabilities		16,244,825			16,107,573			16,006,986			16,045,179			16,090,898
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125			125			125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000			25,000			25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding		7,159			7,226			7,247			7,265			7,256
Additional paid-in capital		1,163,170			1,183,263			1,188,768			1,192,683			1,191,193
Retained earnings		1,342,473			1,306,911			1,272,528			1,229,125			1,200,930
Accumulated other comprehensive loss		(189,975	)		(190,311	)		(188,685	)		(151,825	)		(211,979	)
Total Stockholders’ Equity		2,347,952			2,332,214			2,304,983			2,302,373			2,212,525
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,592,777		$	18,439,787		$	18,311,969		$	18,347,552		$	18,303,423

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	June 30,				March 31,				December 31,				September 30,				June 30,
	2025				2025				2024				2024				2024
INTEREST INCOME
Loans:
Taxable	$	195,173			$	187,728			$	197,536			$	206,680			$	201,413
Tax-exempt		10,805				10,532				9,020				8,622				8,430
Investment securities:
Taxable		8,266				8,372				9,024				9,263				9,051
Tax-exempt		12,516				12,517				12,754				13,509				13,613
Deposits with financial institutions		1,892				2,372				5,350				2,154				2,995
Federal Home Loan Bank stock		1,083				997				958				855				879
Total Interest Income		229,735				222,518				234,642				241,083				236,381
INTEREST EXPENSE
Deposits		84,241				80,547				89,835				98,856				99,151
Federal funds purchased		965				812				26				329				126
Securities sold under repurchase agreements		663				742				680				700				645
Federal Home Loan Bank advances		9,714				9,364				8,171				8,544				6,398
Subordinated debentures and other borrowings		1,138				783				1,560				1,544				1,490
Total Interest Expense		96,721				92,248				100,272				109,973				107,810
NET INTEREST INCOME		133,014				130,270				134,370				131,110				128,571
Provision for credit losses		5,600				4,200				4,200				5,000				24,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		127,414				126,070				130,170				126,110				104,071
NONINTEREST INCOME
Service charges on deposit accounts		8,566				8,072				8,124				8,361				8,214
Fiduciary and wealth management fees		8,831				8,644				8,665				8,525				8,825
Card payment fees		4,932				4,526				4,957				5,121				4,739
Net gains and fees on sales of loans		5,849				5,022				5,681				6,764				5,141
Derivative hedge fees		831				404				1,594				736				489
Other customer fees		401				415				316				344				460
Earnings on cash surrender value of life insurance		1,913				2,179				2,188				2,755				1,929
Net realized losses on sales of available for sale securities		(1	)			(7	)			(11,592	)			(9,114	)			(49	)
Gain on branch sale		—				—				19,983				—				—
Other income (loss)		(19	)			793				2,826				1,374				1,586
Total Noninterest Income		31,303				30,048				42,742				24,866				31,334
NONINTEREST EXPENSES
Salaries and employee benefits		54,527				54,982				55,437				55,223				52,214
Net occupancy		6,845				7,216				7,335				6,994				6,746
Equipment		6,927				7,008				7,028				6,949				6,599
Marketing		1,997				1,353				2,582				1,836				1,773
Outside data processing fees		7,107				5,929				6,029				7,150				7,072
Printing and office supplies		272				347				377				378				354
Intangible asset amortization		1,505				1,526				1,771				1,772				1,771
FDIC assessments		3,552				3,648				3,744				3,720				3,278
Other real estate owned and foreclosure expenses		29				600				227				942				373
Professional and other outside services		3,741				3,261				3,777				3,035				3,822
Other expenses		7,096				7,032				7,982				6,630				7,411
Total Noninterest Expenses		93,598				92,902				96,289				94,629				91,413
INCOME BEFORE INCOME TAX		65,119				63,216				76,623				56,347				43,992
Income tax expense		8,287				7,877				12,274				7,160				4,067
NET INCOME		56,832				55,339				64,349				49,187				39,925
Preferred stock dividends		469				469				469				468				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,363			$	54,870			$	63,880			$	48,719			$	39,456


PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.98			$	0.95			$	1.10			$	0.84			$	0.68
Diluted Net Income Available to Common Stockholders	$	0.98			$	0.94			$	1.10			$	0.84			$	0.68
Cash Dividends Paid to Common Stockholders	$	0.36			$	0.35			$	0.35			$	0.35			$	0.35
Tangible Common Book Value Per Share	$	27.90			$	27.34			$	26.78			$	26.64			$	25.10
Average Diluted Common Shares Outstanding (in thousands)		57,773				58,242				58,247				58,289				58,328
FINANCIAL RATIOS:
Return on Average Assets		1.23		%		1.21		%		1.39		%		1.07		%		0.87		%
Return on Average Stockholders’ Equity		9.63				9.38				11.05				8.66				7.16
Return on Tangible Common Stockholders’ Equity		14.49				14.12				16.75				13.39				11.29
Average Earning Assets to Average Assets		92.71				92.47				92.48				92.54				92.81
Allowance for Credit Losses – Loans as % of Total Loans		1.47				1.47				1.50				1.48				1.50
Net Charge-offs as % of Average Loans (Annualized)		0.07				0.15				0.02				0.21				1.26
Average Stockholders’ Equity to Average Assets		12.64				12.76				12.51				12.26				12.02
Tax Equivalent Yield on Average Earning Assets		5.50				5.39				5.63				5.82				5.69
Interest Expense/Average Earning Assets		2.25				2.17				2.35				2.59				2.53
Net Interest Margin (FTE) on Average Earning Assets		3.25				3.22				3.28				3.23				3.16
Efficiency Ratio		53.99				54.54				48.48				53.76				53.84

LOANS
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Commercial and industrial loans	$	4,440,924		$	4,306,597		$	4,114,292		$	4,041,217		$	3,949,817
Agricultural land, production and other loans to farmers		265,172			243,864			256,312			238,743			239,926
Real estate loans:
Construction		836,033			793,175			792,144			814,704			823,267
Commercial real estate, non-owner occupied		2,171,092			2,177,869			2,274,016			2,251,351			2,323,533
Commercial real estate, owner occupied		1,226,797			1,214,739			1,157,944			1,152,751			1,174,195
Residential		2,397,094			2,389,852			2,374,729			2,366,943			2,370,905
Home equity		673,961			650,499			659,811			641,188			631,104
Individuals’ loans for household and other personal expenditures		141,045			140,954			166,028			158,480			162,089
Public finance and other commercial loans		1,144,641			1,087,356			1,059,083			981,431			964,814
Loans		13,296,759			13,004,905			12,854,359			12,646,808			12,639,650
Allowance for credit losses – loans		(195,316	)		(192,031	)		(192,757	)		(187,828	)		(189,537	)
NET LOANS	$	13,101,443		$	12,812,874		$	12,661,602		$	12,458,980		$	12,450,113


DEPOSITS
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Demand deposits	$	7,798,695		$	7,786,554		$	7,980,061		$	7,678,510		$	7,757,679
Savings deposits		4,984,659			4,791,874			4,522,758			4,302,236			4,339,161
Certificates and other time deposits of $100,000 or less		617,857			625,203			692,068			802,949			889,949
Certificates and other time deposits of $100,000 or more		891,139			896,143			1,043,068			1,277,833			1,415,131
Brokered certificates of deposits¹		505,228			362,204			283,671			303,572			167,150
TOTAL DEPOSITS	$	14,797,578		$	14,461,978		$	14,521,626		$	14,365,100		$	14,569,070

^{1 –} Total brokered deposits of $1.2 billion, which includes brokered CD’s of $505.2 million at June 30, 2025.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Three Months Ended
	June 30, 2025						June 30, 2024
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	252,613	$	1,892	3.00	%	$	322,647	$	2,995	3.71	%
Federal Home Loan Bank stock		46,598		1,083	9.30			41,749		879	8.42
Investment Securities: ⁽¹⁾
Taxable		1,605,718		8,266	2.06			1,788,749		9,051	2.02
Tax-exempt ⁽²⁾		2,042,326		15,843	3.10			2,240,309		17,232	3.08
Total Investment Securities		3,648,044		24,109	2.64			4,029,058		26,283	2.61
Loans held for sale		25,411		389	6.12			28,585		431	6.03
Loans: ⁽³⁾
Commercial		9,006,650		154,108	6.84			8,691,746		160,848	7.40
Real estate mortgage		2,200,521		25,062	4.56			2,150,591		23,799	4.43
HELOC and installment		834,901		15,614	7.48			823,417		16,335	7.94
Tax-exempt ⁽²⁾		1,144,246		13,677	4.78			926,191		10,670	4.61
Total Loans		13,211,729		208,850	6.32			12,620,530		212,083	6.72
Total Earning Assets		17,158,984		235,934	5.50	%		17,013,984		242,240	5.69	%
Total Non-Earning Assets		1,349,801						1,318,175
TOTAL ASSETS	$	18,508,785					$	18,332,159
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,545,158	$	35,303	2.55	%	$	5,586,549	$	40,994	2.94	%
Money market deposits		3,613,952		28,714	3.18			3,036,398		27,230	3.59
Savings deposits		1,282,951		2,513	0.78			1,508,734		3,476	0.92
Certificates and other time deposits		2,003,682		17,711	3.54			2,414,967		27,451	4.55
Total Interest-Bearing Deposits		12,445,743		84,241	2.71			12,546,648		99,151	3.16
Borrowings		1,250,519		12,480	3.99			885,919		8,659	3.91
Total Interest-Bearing Liabilities		13,696,262		96,721	2.82			13,432,567		107,810	3.21
Noninterest-bearing deposits		2,186,370						2,349,219
Other liabilities		286,143						347,012
Total Liabilities		16,168,775						16,128,798
STOCKHOLDERS’ EQUITY		2,340,010						2,203,361
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,508,785					$	18,332,159
Net Interest Income (FTE)			$	139,213					$	134,430
Net Interest Spread (FTE) ⁽⁴⁾					2.68	%					2.48	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.50	%					5.69	%
Interest Expense / Average Earning Assets					2.25	%					2.53	%
Net Interest Margin (FTE) ⁽⁵⁾					3.25	%					3.16	%

⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.
⁽⁴⁾ Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾ Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Six Months Ended
	June 30, 2025						June 30, 2024
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	273,200	$	4,264	3.12	%	$	449,173	$	9,488	4.22	%
Federal Home Loan Bank stock		45,296		2,080	9.18			41,757		1,714	8.21
Investment Securities: ⁽¹⁾
Taxable		1,620,005		16,638	2.05			1,785,903		17,799	1.99
Tax-exempt ⁽²⁾		2,044,489		31,687	3.10			2,243,286		34,461	3.07
Total Investment Securities		3,664,494		48,325	2.64			4,029,189		52,260	2.59
Loans held for sale		23,190		708	6.11			25,184		759	6.03
Loans: ⁽³⁾
Commercial		8,889,119		301,880	6.79			8,644,927		320,057	7.40
Real estate mortgage		2,195,988		49,508	4.51			2,140,769		46,156	4.31
HELOC and installment		831,904		30,805	7.41			822,616		32,464	7.89
Tax-exempt ⁽²⁾		1,137,087		27,009	4.75			915,302		21,038	4.60
Total Loans		13,077,288		409,910	6.27			12,548,798		420,474	6.70
Total Earning Assets		17,060,278		464,579	5.45	%		17,068,917		483,936	5.67	%
Total Non-Earning Assets		1,365,445						1,312,423
TOTAL ASSETS	$	18,425,723					$	18,381,340
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits	$	5,533,858	$	69,909	2.53	%	$	5,503,185	$	80,484	2.92	%
Money market deposits		3,526,461		54,666	3.10			3,040,938		54,613	3.59
Savings deposits		1,291,133		4,958	0.77			1,534,305		7,277	0.95
Certificates and other time deposits		1,975,923		35,255	3.57			2,421,413		55,062	4.55
Total Interest-Bearing Deposits		12,327,375		164,788	2.67			12,499,841		197,436	3.16
Borrowings		1,256,688		24,181	3.85			948,866		19,211	4.05
Total Interest-Bearing Liabilities		13,584,063		188,969	2.78			13,448,707		216,647	3.22
Noninterest-bearing deposits		2,198,939						2,388,695
Other liabilities		302,281						321,188
Total Liabilities		16,085,283						16,158,590
STOCKHOLDERS’ EQUITY		2,340,440						2,222,750
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,425,723					$	18,381,340
Net Interest Income (FTE)			$	275,610					$	267,289
Net Interest Spread (FTE) ⁽⁴⁾					2.67	%					2.45	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.45	%					5.67	%
Interest Expense / Average Earning Assets					2.22	%					2.54	%
Net Interest Margin (FTE) ⁽⁵⁾					3.23	%					3.13	%

⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $12,326 and $11,655 for the six months ended June 30, 2025 and 2024, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.
⁽⁴⁾ Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾ Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended																			Six Months Ended
	June 30,			March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025			2025				2024				2024				2024				2025				2024
Net Income Available to Common Stockholders – GAAP	$	56,363		$	54,870			$	63,880			$	48,719			$	39,456			$	111,233			$	86,928
Adjustments:
Net realized losses on sales of available for sale securities		1			7				11,592				9,114				49				8				51
Gain on branch sale		—			—				(19,983	)			—				—				—				—
Non-core expenses^1,2		—			—				762				—				—				—				3,481
Tax on adjustments		—			(2	)			1,851				(2,220	)			(12	)			(2	)			(860	)
Adjusted Net Income Available to Common Stockholders – Non-GAAP	$	56,364		$	54,875			$	58,102			$	55,613			$	39,493			$	111,239			$	89,600

Average Diluted Common Shares Outstanding (in thousands)		57,773			58,242				58,247				58,289				58,328				58,005				58,800

Diluted Earnings Per Common Share – GAAP	$	0.98		$	0.94			$	1.10			$	0.84			$	0.68			$	1.92			$	1.48
Adjustments:
Net realized losses on sales of available for sale securities		—			—				0.20				0.15				—				—				—
Gain on branch sale		—			—				(0.34	)			—				—				—				—
Non-core expenses^1,2		—			—				0.01				—				—				—				0.06
Tax on adjustments		—			—				0.03				(0.04	)			—				—				(0.01	)
Adjusted Diluted Earnings Per Common Share – Non-GAAP	$	0.98		$	0.94			$	1.00			$	0.95			$	0.68			$	1.92			$	1.53

¹ – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
² – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.


NET INTEREST MARGIN (“NIM”), ADJUSTED
(Dollars in Thousands)
	Three Months Ended																			Six Months Ended
	June 30,			March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025			2025				2024				2024				2024				2025				2024
Net Interest Income (GAAP)	$	133,014		$	130,270			$	134,370			$	131,110			$	128,571			$	263,284			$	255,634
Fully Taxable Equivalent (“FTE”) Adjustment		6,199			6,127				5,788				5,883				5,859				12,326				11,655
Net Interest Income (FTE) (non-GAAP)	$	139,213		$	136,397			$	140,158			$	136,993			$	134,430			$	275,610			$	267,289

Average Earning Assets (GAAP)	$	17,158,984		$	16,960,475			$	17,089,198			$	16,990,358			$	17,013,984			$	17,060,278			$	17,068,917
Net Interest Margin (GAAP)		3.10	%		3.07		%		3.15		%		3.09		%		3.02		%		3.09		%		3.00		%
FTE Adjustment		0.15	%		0.15		%		0.13		%		0.14		%		0.14		%		0.14		%		0.13		%
Net Interest Margin (FTE) (non-GAAP)		3.25	%		3.22		%		3.28		%		3.23		%		3.16		%		3.23		%		3.13		%

RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
(Dollars In Thousands)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025				2025				2024				2024				2024				2025				2024
Total Average Stockholders’ Equity (GAAP)	$	2,340,010			$	2,340,874			$	2,312,270			$	2,251,547			$	2,203,361			$	2,340,440			$	2,222,750
Less: Average Preferred Stock		(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)
Less: Average Intangible Assets, Net of Tax		(725,813	)			(726,917	)			(728,218	)			(729,581	)			(730,980	)			(726,362	)			(731,706	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,589,072			$	1,588,832			$	1,558,927			$	1,496,841			$	1,447,256			$	1,588,953			$	1,465,919

Net Income Available to Common Stockholders (GAAP)	$	56,363			$	54,870			$	63,880			$	48,719			$	39,456			$	111,233			$	86,928
Plus: Intangible Asset Amortization, Net of Tax		1,188				1,206				1,399				1,399				1,399				2,394				2,945
Tangible Net Income (Non-GAAP)	$	57,551			$	56,076			$	65,279			$	50,118			$	40,855			$	113,627			$	89,873

Return on Tangible Common Equity (Non-GAAP)		14.49		%		14.12		%		16.75		%		13.39		%		11.29		%		14.30		%		12.26		%


EFFICIENCY RATIO – NON-GAAP
(Dollars In Thousands)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025				2025				2024				2024				2024				2025				2024
Noninterest Expense (GAAP)	$	93,598			$	92,902			$	96,289			$	94,629			$	91,413			$	186,500			$	188,348
Less: Intangible Asset Amortization		(1,505	)			(1,526	)			(1,771	)			(1,772	)			(1,771	)			(3,031	)			(3,728	)
Less: OREO and Foreclosure Expenses		(29	)			(600	)			(227	)			(942	)			(373	)			(629	)			(907	)

Adjusted Noninterest Expense (Non-GAAP)	$	92,064			$	90,776			$	94,291			$	91,915			$	89,269			$	182,840			$	183,713

Net Interest Income (GAAP)	$	133,014			$	130,270			$	134,370			$	131,110			$	128,571			$	263,284			$	255,634
Plus: Fully Taxable Equivalent Adjustment		6,199				6,127				5,788				5,883				5,859				12,326				11,655
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)	$	139,213			$	136,397			$	140,158			$	136,993			$	134,430			$	275,610			$	267,289

Noninterest Income (GAAP)	$	31,303			$	30,048			$	42,742			$	24,866			$	31,334			$	61,351			$	57,972
Less: Investment Securities (Gains) Losses		1				7				11,592				9,114				49				8				51
Adjusted Noninterest Income (Non-GAAP)	$	31,304			$	30,055			$	54,334			$	33,980			$	31,383			$	61,359			$	58,023
Adjusted Revenue (Non-GAAP)	$	170,517			$	166,452			$	194,492			$	170,973			$	165,813			$	336,969			$	325,312
Efficiency Ratio (Non-GAAP)		53.99		%		54.54		%		48.48		%		53.76		%		53.84		%		54.26		%		56.47		%

Adjusted Noninterest Expense (Non-GAAP)	$	92,064			$	90,776			$	94,291			$	91,915			$	89,269			$	182,840			$	183,713
Less: Non-core Expenses^1,2		—				—				(762	)			—				—				—				(3,481	)
Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP)	$	92,064			$	90,776			$	93,529			$	91,915			$	89,269			$	182,840			$	180,232

Adjusted Revenue (Non-GAAP)	$	170,517			$	166,452			$	194,492			$	170,973			$	165,813			$	336,969			$	325,312
Less: Gain on Branch Sale		—				—				(19,983	)			—				—				—				—
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)	$	170,517			$	166,452			$	174,509			$	170,973			$	165,813			$	336,969			$	325,312

Adjusted Efficiency Ratio (Non-GAAP)		53.99		%		54.54		%		53.60		%		53.76		%		53.84		%		54.26		%		55.40		%

¹ – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
² – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

For more information, contact:
Nicole M. Weaver, First Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

SOURCE: First Merchants Corporation, Muncie, Indiana

The MIL Network –

July 24, 2025

MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

Source: GlobeNewswire (MIL-OSI)

MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

Second Quarter 2025 Highlights:

Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
The efficiency ratio totaled 53.99% for the quarter.