Banking – Page 18 – NewzIntel.com

MIL-OSI Banking: Secretary-General of ASEAN visits the AIIB Headquarters

Source: ASEAN

Secretary-General of ASEAN, Dr. Kao Kim Hourn, today visited the Headquarters of the Asian Infrastructure Investment Bank (AIIB) in Beijing, China, and was received by the President of AIIB, Jin Liqun. They exchanged views on areas of mutual interest and opportunities to strengthen cooperation between ASEAN and AIIB, particularly in advancing regional connectivity including on sustainable infrastructure, the ASEAN Power Grid, and the digital economy. SG Dr. Kao looked forward to the AIIB’s continued support for ASEAN and ASEAN Member States in achieving a resilient, innovative, dynamic, and people-centred ASEAN by 2045.

The post Secretary-General of ASEAN visits the AIIB Headquarters appeared first on ASEAN Main Portal.

MIL OSI Global Banks –

July 23, 2025

MIL-OSI Russia: Israel says ‘total victory’ in Gaza is necessary

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

An important disclaimer is at the bottom of this article.

Source: People’s Republic of China – State Council News

JERUSALEM, July 23 (Xinhua) — Israel must achieve a complete victory in the war in the Gaza Strip, Israeli Defense Minister Israel Katz said on Tuesday.

According to a statement released by the minister’s office, I. Katz assessed the situation on several fronts with IDF Chief of Staff Eyal Zamir and other senior commanders.

“We have come as close as possible to achieving the goals of the war. We have two open theaters of military operations left in Gaza and Yemen, and we must strive for complete victory in both,” the head of the Ministry of Defense noted.

I. Katz emphasized the importance of achieving the set military goals, primarily the return of all Israeli hostages and the capitulation of the Hamas movement.

He added that there was a possibility of a renewed war against Iran and pointed to the need to preserve the “achievements” of the June operation against the Islamic Republic and develop an effective plan to force Iran to abandon its nuclear and missile programs.

I. Katz also said that the IDF’s presence at checkpoints and in security zones in various areas, including Syria and Lebanon, is necessary to protect Israeli communities. The IDF will remain in refugee camps in the West Bank and will operate in other camps if necessary, he added.

The minister’s comments came as talks on a Gaza ceasefire continue in Doha and Israeli media reports earlier in the day indicated significant progress.–0–

Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

.

MIL OSI Russia News –

July 23, 2025

MIL-OSI Banking: Money Market Operations as on July 22, 2025

Source: Reserve Bank of India


(Amount in ₹ crore, Rate in Per cent)

	Volume (One Leg)	Weighted Average Rate	Range
A. Overnight Segment (I+II+III+IV)	6,13,605.52	5.69	4.75-6.60
I. Call Money	17,157.62	5.62	4.75-5.80
II. Triparty Repo	4,17,073.80	5.69	5.50-5.83
III. Market Repo	1,76,684.55	5.69	5.00-5.90
IV. Repo in Corporate Bond	2,689.55	5.90	5.84-6.60
B. Term Segment
I. Notice Money**	140.50	5.48	4.95-5.70
II. Term Money^@@	806.00	–	5.40-5.85
III. Triparty Repo	1,820.00	5.66	5.40-5.70
IV. Market Repo	0.00	–	–
V. Repo in Corporate Bond	0.00	–	–

	Auction Date	Tenor (Days)	Maturity Date	Amount	Current Rate / Cut off Rate
C. Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) & Standing Deposit Facility (SDF)
I. Today’s Operations
1. Fixed Rate
2. Variable Rate^&
(I) Main Operation
(a) Repo
(b) Reverse Repo
(II) Fine Tuning Operations
(a) Repo
(b) Reverse Repo
3. MSF^#	Tue, 22/07/2025	1	Wed, 23/07/2025	13,273.00	5.75
4. SDF^Δ#	Tue, 22/07/2025	1	Wed, 23/07/2025	63,745.00	5.25
5. Net liquidity injected from today’s operations [injection (+)/absorption (-)]*				-50,472.00
II. Outstanding Operations
1. Fixed Rate
2. Variable Rate^&
(I) Main Operation
(a) Repo
(b) Reverse Repo
(II) Fine Tuning Operations
(a) Repo
(b) Reverse Repo	Fri, 18/07/2025	7	Fri, 25/07/2025	2,00,027.00	5.49
3. MSF^#
4. SDF^Δ#
D. Standing Liquidity Facility (SLF) Availed from RBI^$				8,574.40
E. Net liquidity injected from outstanding operations [injection (+)/absorption (-)]*				-1,91,452.60
F. Net liquidity injected (outstanding including today’s operations) [injection (+)/absorption (-)]*				-2,41,924.60

G. Cash Reserves Position of Scheduled Commercial Banks
(i) Cash balances with RBI as on	July 22, 2025	9,44,918.11
(ii) Average daily cash reserve requirement for the fortnight ending	July 25, 2025	9,63,288.00
H. Government of India Surplus Cash Balance Reckoned for Auction as on^¥	July 22, 2025	0.00
I. Net durable liquidity [surplus (+)/deficit (-)] as on	June 27, 2025	5,79,904.00

^@ Based on Reserve Bank of India (RBI) / Clearing Corporation of India Limited (CCIL).

– Not Applicable / No Transaction.

** Relates to uncollateralized transactions of 2 to 14 days tenor.

^@@ Relates to uncollateralized transactions of 15 days to one year tenor.

^$ Includes refinance facilities extended by RBI.

* Net liquidity is calculated as Repo+MSF+SLF-Reverse Repo-SDF.

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2025-2026/763

MIL OSI Global Banks –

July 23, 2025

MIL-OSI China: China’s Hainan free trade port to allow overseas investment in financial products

Source: People’s Republic of China – State Council News

China’s Hainan free trade port to allow overseas investment in financial products

Xinhua | July 23, 2025

China’s Hainan Free Trade Port (FTP) is set to launch a pilot program on August 21 this year, enabling overseas investors to access domestic financial products offered by local financial institutions.

Eligible products will include wealth management products, private asset management products from securities, fund, and futures operators, publicly offered securities investment funds, and insurance asset management products.

The program aims to diversify cross-border financial product offerings and explore new channels for overseas investors to access China’s domestic market, according to an official with the Hainan branch of the People’s Bank of China, one of the co-formulators of the rules.

It is also expected to attract both domestic and international asset management institutions to operate in Hainan, supporting the development of the Hainan FTP, according to the official.

As part of its broader economic strategy, China is transforming Hainan into a Free Trade Port. As the Hainan FTP is set to begin independent customs operations by the end of the year, the province is poised to become not only a tourist haven but also a pivotal gateway for China’s opening-up drive.

MIL OSI China News –

July 23, 2025

Trump strikes trade deal with Japan to cut tariffs

Source: Government of India

Source: Government of India (4)

The United States and Japan struck a deal to lower the hefty tariffs President Donald Trump threatened to impose on goods from its Asian ally that included a pledge by Japan to invest $550 billion in the United States.

The agreement – including a 15% tariff on all imported Japanese goods, down from a proposed 25% – is the most significant of the string of trade deals the White House has reached ahead of an approaching August 1 deadline for higher levies to kick in.

“I just signed the largest TRADE DEAL in history with Japan,” Trump said on his Truth Social platform. “This is a very exciting time for the United States of America, and especially for the fact that we will continue to always have a great relationship with the Country of Japan.”

Ishiba, who is facing political pressure after a bruising election defeat on Sunday, hailed the deal as “the lowest figure among countries that have a trade surplus with the U.S.”.

The two sides also agreed to cut tariff 25% tariffs already imposed on Japanese autos to 15%, Ishiba said. Auto exports account for more than a quarter of Japan’s exports to the U.S.

The announcement ignited a rally in Japanese stocks, with the benchmark Nikkei climbing 2.6% to its highest in a year. Shares of automakers surged in particular, with Toyota 7203.T up more than 11%, and Honda 7267.T and Nissan 7201.T both up more than 8%.

The exuberance extended to shares of South Korean carmakers as well, as the Japan deal stoked optimism that South Korea could strike a comparable deal. The yen firmed slightly against the dollar, and U.S. equity index futures edged upward.

But U.S. automakers signaled their unhappiness with the deal, raising concerns about a trade regime that could cut tariffs on auto imports from Japan to 15% while leaving tariffs on imports from Canada and Mexico at 25%.

Matt Blunt, who heads the American Automotive Policy Council which represents General Motors GM.N Ford F.N and Chrysler-parent Stellantis STLAM.MI, said “any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American-built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers.”

‘MISSION COMPLETE’

Autos are a huge part of U.S.-Japan trade, but almost all of it is one way to the U.S. from Japan, a fact that has long irked Trump. In 2024, the U.S. imported more than $55 billion of vehicles and automotive parts while just over $2 billion were sold into the Japanese market from the U.S.

Two-way trade between the two countries totaled nearly $230 billion in 2024, with Japan running a trade surplus of nearly $70 billion. Japan is the fifth-largest U.S. trading partner in goods, U.S. Census Bureau data show.

Trump’s announcement followed a meeting with Japan’s top tariff negotiator, Ryosei Akazawa, at the White House on Tuesday.

“#Mission Complete,” Akazawa wrote on X.

The deal was “a better outcome” for Japan than it potentially could have been, given Trump’s earlier unilateral tariff threats, said Kristina Clifton, a senior economist at the Commonwealth Bank of Australia in Sydney.

“Steel, aluminium, and also cars are important exports for Japan, so it’ll be interesting to see if there’s any specific carve-outs for those,” Clifton said.

Kazutaka Maeda, an economist at Meiji Yasuda Research Institute, said that “with the 15% tariff rate, I expect the Japanese economy to avoid recession.”

Japan is the largest investor in the United States. Together with pension giant GPIF and Japanese insurers, the country has about $2 trillion invested in U.S. markets.

Besides that, Bank of Japan data shows direct Japanese investment in the United States was $1.2 trillion at the end of 2024, and Japanese direct investment flows amounted to $137 billion in North America last year.

Speaking later at the White House, Trump also expressed fresh optimism that Japan would form a joint venture with Washington to support a gas pipeline in Alaska long sought by his administration.

“We concluded the one deal … and now we’re going to conclude another one because they’re forming a joint venture with us at, in Alaska, as you know, for the LNG,” Trump told lawmakers at the White House. “They’re all set to make that deal now.”

Trump aides are feverishly working to close trade deals ahead of an August 1 deadline that Trump has repeatedly pushed back under pressure from markets and intense lobbying by industry. By that date, countries are set to face steep new tariffs beyond those Trump has already imposed since taking office in January.

Trump has announced framework agreements with Britain, Vietnam, Indonesia and paused a tit-for-tat tariff battle with China, though details are still to be worked out with all of those countries.

At the White House, Trump said negotiators from the European Union would be in Washington on Wednesday.

-Reuters

July 23, 2025

MIL-Evening Report: ER Report: A Roundup of Significant Articles on EveningReport.nz for July 23, 2025

ER Report: Here is a summary of significant articles published on EveningReport.nz on July 23, 2025.

Hard labour conditions of online moderators directly affect how well the internet is policed – new study
Source: The Conversation (Au and NZ) – By Tania Chatterjee, Joint PhD Candidate at Indian Institute of Technology, Delhi, The University of Queensland Getty Images/GCShutter Big tech platforms often present content moderation as a seamless, tech‑driven system. But human labour, often outsourced to countries such as India and the Philippines, plays a pivotal role in

Ghosted by a friend? 4 expert tips on how to handle the hurt
Source: The Conversation (Au and NZ) – By Megan Willis, Associate Professor, School of Behavioural and Health Sciences, Australian Catholic University martin-dm/Getty When we talk about “ghosting”, we usually think it relates to dating. But what happens when you’ve been ghosted by someone you’ve known for years – your childhood best friend, a parent, a

Labor’s new bill would cut HELP loans by 20%. But it also risks locking some graduates into a ‘debt treadmill’
Source: The Conversation (Au and NZ) – By Andrew Norton, Professor of Higher Education Policy, Monash University The Albanese government’s 20% cut to student debt is the first bill introduced to the new federal parliament. It is clever politics. In the government’s first term, the 3 million Australians with a student debt turned high indexation

ICJ climate crisis ruling: Will world’s top court back Pacific-led call to hold governments accountable?
By Jamie Tahana in The Hague for RNZ Pacific In 2019, a group of law students at the University of the South Pacific, frustrated at the slow pace with which the world’s governments were moving to address the climate crisis, had an idea — they would take the world’s governments to court. They arranged a

‘Maybe this is the last minutes you are living’: how the war is impacting young Ukrainians
Source: The Conversation (Au and NZ) – By Ashley Humphrey, Lecturer in Social Sciences, Monash University Now into its fourth year, the war that followed Russia’s invasion of Ukraine has taken a devastating toll. An estimated 60,000 to 100,0000 Ukrainian lives have been lost and more than 10 million citizens displaced, and entire cities have

Auckland is NZ’s ‘primate city’ but its potential remains caged in by poor planning and vision
Source: The Conversation (Au and NZ) – By Timothy Welch, Senior Lecturer in Urban Planning, University of Auckland, Waipapa Taumata Rau Getty Images The recent report comparing Auckland to nine international peer cities delivered an uncomfortable truth: our largest city is falling behind, hampered by car dependency, low-density housing and “weak economic performance”. The Deloitte

Climate disasters are pushing people into homelessness – but there’s a lot we can do about it
Source: The Conversation (Au and NZ) – By Timothy Heffernan, Lecturer in Anthropology, Australian National University Almost half of all Australian properties are at risk of bushfire, while 17,500 face risk of coastal erosion. By 2030, more than 3 million will face riverine flood risk. Meanwhile, housing demand continues to outpace supply. With climate-related disasters

UK bans Gaza protest group – could the same thing happen in Australia?
Source: The Conversation (Au and NZ) – By Shannon Bosch, Associate Professor (Law), Edith Cowan University More than 100 people were arrested in the United Kingdom on the weekend for supporting Palestine Action, a protest group that opposes Britain’s support of Israel. Palestine Action was recently proscribed as a terrorist organisation, placing it in the

The incredible impact of Ozzy Osbourne, from Black Sabbath to Ozzfest to 30 years of retirement tours
Source: The Conversation (Au and NZ) – By Lachlan Goold, Senior Lecturer in Contemporary Music, University of the Sunshine Coast Ozzy Osbourne photographed in London in 1991. Martyn Goodacre/Getty Images Ozzy Osbourne, the “prince of darkness” and godfather of heavy metal, has died aged 76, just weeks after he reunited with Black Sabbath bandmates for

Could the latest ‘interstellar comet’ be an alien probe? Why spotting cosmic visitors is harder than you think
Source: The Conversation (Au and NZ) – By Sara Webb, Lecturer, Centre for Astrophysics and Supercomputing, Swinburne University of Technology Comet 3I/ATLAS International Gemini Observatory/NOIRLab/NSF/AURA/K. Meech/Jen Miller/Mahdi Zamani, CC BY On July 1, astronomers spotted an unusual high-speed object zooming towards the Sun. Dubbed 3I/ATLAS, the surprising space traveller had one very special quality: its

Should Australia lower the voting age to 16 like the UK? We asked 5 experts
Source: The Conversation (Au and NZ) – By Pandanus Petter, Postdoctoral Research Fellow, School of Politics and International Relations, Australian National University The government in the UK is introducing legislation into parliament to lower the voting age to 16. If passed, the new age rules will be in place for the next general election, expected

Doctors shouldn’t be allowed to object to medical care if it harms their patients
Source: The Conversation (Au and NZ) – By Julian Savulescu, Visiting Professor in Biomedical Ethics, Murdoch Children’s Research Institute; Distinguished Visiting Professor in Law, University of Melbourne; Uehiro Chair in Practical Ethics, The University of Melbourne HRAUN/Getty A young woman needs an abortion and the reasons, while urgent, are not medical. A United States Navy

Ultra fast fashion could be taxed to oblivion in France. Could Australia follow suit?
Source: The Conversation (Au and NZ) – By Rowena Maguire, Professor of Law and Director of the Centre of Justice, Queensland University of Technology Ryan McVay/Getty For centuries, clothes were hard to produce and expensive. People wore them as long as possible. But manufacturing advances have steadily driven down the cost of production. These days,

Central bank independence and credibility matters. Here’s why
Source: The Conversation (Au and NZ) – By John Simon, Adjunct Fellow in Economics, Macquarie University Olga Kashubin/Shutterstock In the United States, President Donald Trump has been pressuring the chairman of the US Federal Reserve, Jerome Powell, to slash interest rates. This is partly to ease the interest payments on the ballooning US government debt.

Kneecap’s stance on Gaza extends a long history of the Irish supporting other oppressed peoples
Source: The Conversation (Au and NZ) – By Ciara Smart, PhD Graduand in Australasian Irish History, University of Tasmania Love them or hate them, there’s no doubt Irish hip-hop trio Kneecap are having a moment. Their music – delivered in a powerful fusion of English and Irish – is known for its gritty lyrics about

Do countries have a duty to prevent climate harm? The world’s highest court is about to answer this crucial question
Source: The Conversation (Au and NZ) – By Nathan Cooper, Associate Professor of Law, University of Waikato Getty Images The International Court of Justice (ICJ) will issue a highly anticipated advisory opinion overnight to clarify state obligations related to climate change. It will answer two urgent questions: what are the obligations of states under international

Gaza not a religious issue – it’s a massive violation of international law, say accord critics
Asia Pacific Report Groups that have declined to join the government-sponsored “harmony accord” signed yesterday by some Muslim and Jewish groups, say that the proposed new council is “misaligned” with its aims. The signed accord was presented at Government House in Auckland. About 70 people attended, including representatives of the New Zealand Jewish Council, His

Flying the flags for Palestine – NZ protesters take message to Devonport
The Devonport Flagstaff About 200 people marched in Devonport last Saturday in support of Palestine. Pro-Palestine flags and placards were draped on the band rotunda at Windsor Reserve as speakers, including Green Party co-leader Chlöe Swarbrick and the people power manager of Amnesty International Aotearoa New Zealand Margaret Taylor, a Devonport local, encouraged the crowd

View from The Hill: How much can Jim Chalmers get out of the economic reform roundtable?
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra We’re now less than a month away from the start of the Albanese government’s “economic reform” (aka “productivity”) roundtable, but it has become quite hard to get a fix on exactly what this gathering will amount to. The guest list

Israeli settlers beat to death 2 Palestinians in latest lynchings
BEARING WITNESS: By Cole Martin in occupied West Bank Two young Palestinians were beaten to death on their land by Israeli settlers in the occupied West Bank on Friday. A funeral was held on Sunday for Sayfollah “Saif” Mussalet, 20, and Muhammad Shalabi, 23, who were brutally killed by a large group of settlers in

MIL OSI Analysis – EveningReport.nz –

July 23, 2025

MIL-OSI Economics: Asian Development Blog: Your Questions Answered: How Will the Big Beautiful Bill Affect Asia and the Pacific?

Source: Asia Development Bank

Economists Ahmad Miraj and Gabriele Ciminelli, with ADB’s Economic Research and Development Impact Department, answer questions about the recently approved One Big Beautiful Bill Act in the United States, based on research for the July 2025 Asian Development Outlook.

MIL OSI Economics –

July 23, 2025

MIL-OSI China: Hainan free trade port to allow overseas investment in financial products

Source: People’s Republic of China – State Council News

An aerial drone photo taken on May 27, 2025 shows a view of the Yangpu Free Trade Port Zone under the Yangpu Economic Development Zone in Danzhou, south China’s Hainan Province. [Photo/Xinhua]

China’s Hainan Free Trade Port (FTP) is set to launch a pilot program on August 21 this year, enabling overseas investors to access domestic financial products offered by local financial institutions.

Eligible products will include wealth management products, private asset management products from securities, fund, and futures operators, publicly offered securities investment funds, and insurance asset management products.

The program aims to diversify cross-border financial product offerings and explore new channels for overseas investors to access China’s domestic market, according to an official with the Hainan branch of the People’s Bank of China, one of the co-formulators of the rules.

It is also expected to attract both domestic and international asset management institutions to operate in Hainan, supporting the development of the Hainan FTP, according to the official.

As part of its broader economic strategy, China is transforming Hainan into a Free Trade Port. As the Hainan FTP is set to begin independent customs operations by the end of the year, the province is poised to become not only a tourist haven but also a pivotal gateway for China’s opening-up drive.

MIL OSI China News –

July 23, 2025

MIL-OSI USA: SCHNEIDER STATEMENT ON PALESTINIAN-AMERICAN KILLED IN WEST BANK

Source: United States House of Representatives – Representative Brad Schneider (D-IL)

WASHINGTON – Rep. Brad Schneider, co-chair and co-founder of the Abraham Accords Caucus and a member of the House Foreign Affairs Committee, released the following statement in response to the death of Palestinian-American Sayfollah Musallet, who was killed in a confrontation with Israeli settlers on July 11:

“I am appalled and heartbroken by news of the killing of Sayfollah Musallet, a 20-year-old American citizen from Florida, by Israeli settlers in the West Bank. The attack took place in Area B as defined by the Oslo Accords, a space where Israel exercises security responsibility and no settlements may be constructed.

“Palestinian militant attacks on Israelis and Israeli settler attacks on Palestinians are acts of terrorism. Terrorism is never justified.

“As a lifelong and unyielding defender of Israel’s security, and a committed advocate for peace between Israelis and Palestinians, I’ve repeatedly called on the Israeli government to address the growing number of violent attacks by Israeli settlers in the West Bank. This violence is a threat to Israel’s security and a barrier to a better, peaceful future for Israelis, Palestinians and the region as a whole.

“Israel’s democracy, like all democracies, depends on the rule of law and its equal application to all citizens. Israeli authorities must fully investigate this incident and hold the perpetrators to account.”

###

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Reed & Justice Introduce Bipartisan Strengthening Local Food Security Act

US Senate News:

Source: United States Senator for Rhode Island Jack Reed
WASHINGTON, DC – In an effort to strengthen the nation’s food supply chain network, bolster economic opportunities for local farmers and food producers, and increase access to fresh, local nutritious food in underserved communities and schools, U.S. Senators Jack Reed (D-RI) and Jim Justice (R-WV) teamed up to introduce the Strengthening Local Food Security Act (S. 2338).
This new bill would create a permanent grant program for state and tribal governments to procure local foods for distribution to nearby hunger relief programs and schools.
The bipartisan proposal would leverage government procurement and purchasing power to increase access to locally-sourced, fresh, healthy, and nutritious food in underserved communities and schools and in turn, help family farmers, fishermen, and local food producers grow their markets. This grant program would:
Support local economic development by creating new access to the hunger relief market for local farmers and fishermen, creating a new, reliable stream of orders for small, beginning, and underserved farmers, ranchers, and fishers, giving these businesses the financial security to invest and further expand.
Strengthen our domestic agriculture supply chain by investing in local food distribution. The bill would help build local businesses that support durable and resilient local food systems.
Combat food insecurity by providing fresh, nutritious, local food to underserved communities and schools, feeding more families and helping ease the strain on the hunger relief system.
“Food prices are up and food banks are experiencing rising demand. We’ve got to feed those in need. The Strengthening Local Food Security Act makes family farmers and fishermen part of the solution, putting fresh, healthy food on the table in a cost-effective manner that strengthens the local economy too,” said Senator Jack Reed. “This bill will feed students and families and plant seeds of economic development for farmers, fishermen, and others throughout the nation’s food supply chain.”
“In West Virginia, we know the value of hard work and locally grown food. The Strengthening Local Food Security Act helps our farmers, ranchers, and fishermen get more of their local food onto more tables. It puts money back into our communities and keeps people fed. That’s a win-win all around. I look forward to working to get this done for our local producers, food banks, and schools,” Senator Jim Justice said.
The Strengthening Local Food Security Act is supported by a wide range of farmers, food hubs, coalitions, and business networks from across the country, including the National Sustainable Agriculture Coalition, National Farmers Union, the National Association of State Departments of Agriculture, and the Farm Credit Council.
In Rhode Island, the bill is supported by several leading organizations, including: the Rhode Island Community Food Bank, Farm Fresh Rhode Island, and the Rhode Island Food Policy Council.
“At a time when we’re serving more people than ever before, this type of legislation is critical, both for Rhode Island families and for our state’s economy,” said Melissa Cherney, incoming CEO of the Rhode Island Community Food Bank. “We’re honored to support Senator Reed’s bill.”
“It’s always a good time to invest in Rhode Island’s farmers. This bill will increase fairness by opening valuable wholesale markets to our smaller-scale producers. Even better, it does so while supporting the state’s economy and feeding our communities,” said Nessa Richman, Network Director of the Rhode Island Food Policy Council.
“Over 40 percent of people in Rhode Island do not have enough to eat. This bill helps to address that issue by partnering with local farmers as part of the solution. Farm Fresh RI is excited by the opportunity to strengthen the agricultural supply chain, support local economic development and provide nutritious food to children and food insecure families,” said Jesse Rye, Executive Director of Farm Fresh Rhode Island.
“Farm Credit applauds Senators Reed and Justice for their leadership in introducing the Strengthening Local Food Security Act of 2025. This bill is a strategic investment in American agriculture—supporting farmers, strengthening supply chains, and helping schools and communities access locally produced food. This bill will help boost regional economies and improve food security across the country,” said Christy Seyfert, President and CEO, Farm Credit Council.

MIL OSI USA News –

July 23, 2025

MIL-OSI Economics: ADB Lowers Economic Growth Forecast for Asia and the Pacific

Source: Asia Development Bank

ADB has lowered its growth forecasts for economies in developing Asia and the Pacific this year and next year. The downgrades are driven by expectations of reduced exports amid higher United States (U.S.) tariffs and global trade uncertainty, as well as weaker domestic demand.

MIL OSI Economics –

July 23, 2025

MIL-OSI Economics: Asian Development Outlook (ADO) July 2025: Slower Growth Amid Tariffs and Uncertainty

Source: Asia Development Bank

Tariffs and trade uncertainty are dampening the outlook for developing Asia and the Pacific, with growth forecasts downgraded to 4.7% for 2025 and 4.6% for 2026. Risks include renewed tariff hikes, geopolitical tensions, and further property market weakness in the People’s Republic of China.

MIL OSI Economics –

July 23, 2025

MIL-OSI USA: Rosen, Colleagues Push to Prevent Corporations From Using Trump’s Chaotic Tariffs as Cover to Price Gouge Americans

US Senate News:

Source: United States Senator Jacky Rosen (D-NV)

WASHINGTON, DC – U.S. Senator Jacky Rosen (D-NV) joined Senate colleagues in a letter calling on the Federal Trade Commission (FTC) to investigate and stop corporations that may be using Donald Trump’s tariffs as a cover to raise prices on all goods, regardless of whether they are actually subject to new tariffs, and increase prices above and beyond what is necessary to cover any additional costs. In June 2025, the Federal Reserve Bank of New York released new survey results showing that “a significant share” of companies raised prices of goods and services that are not subject to tariffs.
“This Administration’s reckless approach to trade is spiking costs for small businesses and creating opportunities for billion-dollar companies to grow their profits and take advantage of consumers,” wrote the lawmakers. “The FTC should be utilizing its full authority to prevent these unfair practices.”
Senator Rosen has helped lead the fight opposing Trump’s reckless tariffs and defending consumers. She helped introduce the Tariff Transparency Act, which would require the U.S. International Trade Commission to study and publicly report on the economic effects of tariffs on Canada and Mexico– key trading partners for Nevada industries. She’s also repeatedly pushed back against price gouging, calling on the DOJ to curb price gouging at the gas pump and in the housing market.

MIL OSI USA News –

July 23, 2025

MIL-OSI China: China’s tech SMEs receive stronger credit support: central bank

Source: People’s Republic of China – State Council News

BEIJING, July 22 — China has stepped up credit support for technology companies this year, with half of the sector’s small and medium-sized enterprises (SMEs) receiving loans by the end of the second quarter, official data showed Tuesday.

The proportion of tech SMEs receiving loan support increased 3.2 percentage points compared to the same period last year, according to the People’s Bank of China (PBOC), the country’s central bank.

Outstanding loans to tech SMEs in both local and foreign currencies stood at 3.46 trillion yuan (about 484 billion U.S. dollars) by Q2, surging 22.9 percent year on year. This growth rate outpaced overall loan growth by 16.1 percentage points, the PBOC said in a report.

Outstanding loans to high-tech firms in both local and foreign currencies rose 8.2 percent year on year, 1.4 percentage points higher than the overall loan growth rate, the report showed.

The report also indicated stronger credit support for the country’s green transition, with outstanding green loans in both local and foreign currencies reaching 42.39 trillion yuan by the end of the second quarter, an increase of 14.4 percent from the beginning of this year.

MIL OSI China News –

July 23, 2025

MIL-OSI USA: At Nomination Hearing, Warren Secures Agreement from Trump Treasury Nominee to Work on Raising Deposit Insurance Limits for Business Transaction Accounts

US Senate News:

Source: United States Senator for Massachusetts – Elizabeth Warren
July 22, 2025
“Raising FDIC insurance limits is a common-sense policy that levels the playing field for the small and mid-sized banks that actually lend to small businesses.”
Watch here (YouTube)
Washington, D.C. – Today, U.S. Senator Elizabeth Warren (D-Mass.), member of the Senate Finance Committee and Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, secured an agreement from Jonathan McKernan, nominee to be Undersecretary of the Treasury for Domestic Finance, on working together towards increasing the limit for deposit insurance for business transaction accounts to help level the playing field in our banking system. Republican Senator James Lankford had a similar exchange with Mr. McKernan at the hearing, underscoring the bipartisan interest in deposit insurance reform.
Below is the full transcript of Ranking Member Warren’s questioning with McKernan:
Ranking Member Warren: FDIC insurance is limited to $250,000. Above that, customers with bigger deposits are supposed to wait in line and hope they can recover a portion of their funds when a bank fails.
In March 2023, Silicon Valley Bank and Signature Bank blew up, creating the third- and fourth-largest bank failures in U.S. history. In order to prevent additional bank runs and a full-blown financial crisis, the Fed, FDIC, and Treasury took the extraordinary step of guaranteeing all—ALL—uninsured deposits at those banks. That meant that huge companies, like the venture capital firm Sequoia, crypto company Circle, and electronics company Roku, had billions of dollars in deposits and they didn’t lose a penny. FDIC made good on all of it.
Now I want to contrast that with what Senator Lankford said about the treatment of two small bank failures in Oklahoma and Texas in the years after SVB crashed. Local small businesses, like pharmacies, grocery stores, and construction companies that kept payroll and other money at these community banks, got $250,000 in FDIC coverage and lost millions of dollars of the uninsured balance.
People understand which banks will—and won’t—get bailed out if there’s trouble. In the week following SVB’s crash, $100 billion in deposits left smaller banks, while the largest 25 banks saw $120 billion in new deposits.
Mr. McKernan, you were a Board Member at the FDIC in 2023 when SVB and Signature collapsed and you saw some of these dynamics up close. Has it become clear to the market that, in the event of failure, depositors at giant banks will get fully reimbursed while depositors at small banks may not?
Jonathan McKernan: Senator I was at the FDIC during those events. What I would say is, by law, uninsured depositors are at risk of loss. There has been a developing market expectation to the contrary at least with respect to large banks. The events around SVPB and signature may have reinforced that market expectation
Warren: Mr. McKernan, can you explain the implications of this two-tier system on both the banking system and broader economy?
McKernan: As the Secretary said, he is focused on the mainstream. What that means as a practical matter for me is it will focus on community banks and on every main street there is a community bank all too often that is a community bank under pressure whether from a mounting compliance burden or this market perception that may advantage the largest banks. So I think a central issue for financial regulation is how we ensure community banks continue to play a role in the financial system of the future
Warren: One way to help level the playing field is to increase deposit insurance limits for business transaction accounts – bank accounts that businesses use to make payroll and rent. Banks that benefit from the increase would pay for this expanded coverage ahead of time through their regular deposit insurance premiums.
This would help smaller banks compete. It also would require big banks to start paying for some of the insurance coverage they’ve been implicitly receiving for free. If small and mid-sized businesses are protected, this could also limit the government’s impulse to bail out giant banks whenever trouble hits.
Mr. McKernan, this idea has received broad bipartisan support. Do you believe that Congress should increase deposit insurance limits for business transaction accounts?
McKernan: Senator, as I was discussing with Senator Lankford, the Secretary has spoken on this and expressed a real interest in exploring an increase in the cap on deposit insurance for business, payment accounts, that would obviously require legislation, that would require congressional action. But I did recently discuss this issue with him. He’s heard this issue over and over again from many, many community banks that he’s met with inside the Treasury and outside the Treasury. The bottom line here is the Secretary would be very eager to see legislation to that effect to move the cap up on deposit insurance for business and community banks.
Warren: Will you work with me and Chairman Scott on the Banking Committee to get this done?
McKernan: Yes, Senator.
Warren: Great. The giant banks don’t need another subsidy. Raising FDIC insurance limits is a common-sense policy that levels the playing field for the small and mid-sized banks that actually lend to small businesses.

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Vermont Delegation Meets with Dylan Collins, Demands Accountability for Targeted Attack Against International Journalists in Lebanon

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
WASHINGTON, D.C.—U.S. Senator Peter Welch (D-Vt.) today met with Dylan Collins, a Vermonter and video journalist for the Agence France-Presse (AFP) news agency, who was attacked and wounded by Israeli Defense Forces (IDF) while reporting in Southern Lebanon. Representatives for Senator Bernie Sanders (I-Vt.) and Representative Becca Balint (D-VT-At Large) also attended the meeting.
The Vermont Congressional Delegation released the following statement of support for Mr. Collins:
“For two years, we have sought accountability for Dylan Collins, a Vermonter who was wounded in a targeted attack on international journalists in southern Lebanon by Israeli Defense Forces. A Reuters journalist was killed instantly, AFP’s Christina Assi suffered catastrophic injuries, including losing her right leg, and Mr. Collins and four others were wounded by shrapnel. Multiple credible independent investigations indicate that the attack by Israeli soldiers was a deliberate targeting of individuals who were clearly identified as journalists.
“We have demanded answers from both the Biden and Trump Administrations. The United States government has a responsibility to investigate and obtain accountability for an attack on an American citizen. This Administration has yet to recognize this obligation to Mr. Collins. Our delegation will continue to seek accountability for this shocking misuse of lethal force through legislation, including restrictions on taxpayer-funded weapons for Israel.”
Independent investigations conducted by Reuters, Amnesty International, Human Rights Watch, Agence France-Presse (AFP), and others have concluded that the IDF’s October 2023 attack on international journalists, including Dylan Collins, in southern Lebanon was targeted and deliberate.
Nine American citizens, including Palestinian-American journalist Shireen Abu Akleh, have been killed by IDF forces or settlers since 2022. The killings have been met by a lack of accountability from the Israeli government and a pattern of indifference by the U.S. government. These failures have contributed to an unacceptable culture of impunity when it comes to ensuring accountability for the deaths of Americans, journalists, and tens of thousands of Palestinian civilians in the West Bank, Gaza, Lebanon, and Syria.
Reports by the Committee to Protect Journalists (CPJ) have revealed that at least 186journalists and media workers have been killed in Gaza, the West Bank, Israel, and Lebanonsince the conflict began on October 7, 2024, making it the deadliest period for journalists since CPJ began gathering data in 1992.

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Reps. Moore and Zinke Introduce Legislation to Codify Executive Order on National Parks

Source: United States House of Representatives – Representative Riley Moore (WV-02)

Washington, D.C. – Today, Congressman Riley M. Moore (WV-02) and Congressman Ryan Zinke (MT-01) introduced the PATRIOT Parks Act — which codifies President Trump’s Executive Order “Making America Beautiful Again by Improving Our National Parks.”

Currently, the National Parks System faces more than $23 billion in deferred maintenance, including more than $200 million on parklands in West Virginia. This legislation implements increased entrance fees for foreign visitors at National Parks, with the additional funds being reinvested back into parks for maintenance and other basic operating costs. Senator Jim Banks of Indiana and Senator Tim Sheehy of Montana introduced companion legislation in the Senate.

The bill is supported by the American Conservation Coalition Action (ACC Action) and the Property and Environment Research Center (PERC). Both organizations were instrumental in helping craft the President’s executive order. The Bull Moose Project and American Prairie are also supportive of the legislation.

Congressman Moore issued the following statement:

“From the New River Gorge in my home state to Shenandoah, the Great Smoky Mountains, the Everglades, and the Grand Canyon – God blessed our nation with a tremendous natural heritage. We owe it to future generations to ensure these natural marvels are protected.

“Unfortunately, the National Park System currently faces a backlog of more than $23 billion in deferred maintenance, including more than $200 million on properties across the Mountain State. Our commonsense legislation keeps entry fees static for Americans while charging more for foreigners visiting our National Parks. This will allow us to finally start tackling this extensive maintenance backlog.”

Here’s what others are saying:

“National Parks are America’s best idea and maintaining that legacy for future generations means making smart investments in the management of the parks,” said Congressman Zinke. “Americans already pay for parks in our tax dollars as well as at the gates. It’s unfair to American taxpayers to foot the bill for millions of foreign visitors. Almost every other country charges foreign visitors more, it’s common sense. President Trump and Secretary Burgum did the right thing directing the National Park Service implement a foreign visitor fee. This legislation will codify the policy and ensure Americans are put First in our own parks.”

“Americans already pay for our parks through federal taxes on top of standard admission fees, so it’s fair to ask foreign visitors to chip in more,” said Senator Banks. “This bill codifies President Trump’s executive order and helps protect our national treasures for future generations.”

“Our national parks drive Montana’s tourism economy by bringing in visitors from all over the world and define our way life by offering an experience you can only find in America,” said Senator Sheehy. “Implementing a foreign visitor fee is an America First, commonsense way to secure affordable access for American families, improve our national parks for all visitors, and better manage our treasured public lands. It’s not too much for Americans to ask that their government puts them first, and that’s why I’m proud to support the PATRIOT Parks Act so more American families can enjoy our national parks for generations to come.”

“Our national parks are America’s best idea and a crucial part of our natural heritage, but in recent decades, they have fallen into disrepair with a multibillion-dollar maintenance backlog,” said ACC Action President Chris Barnard. “An increased entry fee for international visitors would raise needed revenue to steward our national treasures and ensure that everyone who enjoys them contributes to protecting them. The American Conservation Coalition Action and our thousands of members are proud to support this effort to bolster the National Park Service.”

“Visitors from across the globe come to see the wonder of America’s national parks, and this proposal offers them a way to give back,” said PERC CEO Brian Yablonski. “Charging a modest fee to international tourists—something many countries already do—provides a steady source of funding to improve park infrastructure, enhance visitor experiences, and invest in long-overdue restoration. Drawing on years of PERC research, we’re grateful to Sen. Banks and Rep. Moore for championing efforts to conserve these iconic places for future generations.”

###

MIL OSI USA News –

July 23, 2025

MIL-OSI: Timberland Bancorp Third Fiscal Quarter Net Income Increases to $7.10 Million

Source: GlobeNewswire (MIL-OSI)

Quarterly EPS Increases 22% to $0.90 from $0.74 One Year Ago
Quarterly Net Interest Margin Increases to 3.80%
Quarterly Return on Average Assets Increases to 1.47%
Quarterly Return on Average Equity Increases to 11.23%
Announces New Stock Repurchase Program

HOQUIAM, Wash., July 22, 2025 (GLOBE NEWSWIRE) — Timberland Bancorp, Inc. (NASDAQ: TSBK) (“Timberland” or “the Company”), the holding company for Timberland Bank (the “Bank”), today reported net income of $7.10 million, or $0.90 per diluted common share for the quarter ended June 30, 2025. This compares to net income of $6.76 million, or $0.85 per diluted common share for the preceding quarter and $5.92 million, or $0.74 per diluted common share, for the comparable quarter one year ago.

For the first nine months of fiscal 2025, Timberland’s net income increased 16% to $20.72 million, or $2.60 per diluted common share, from $17.93 million, or $2.21 per diluted common share for the first nine months of fiscal 2024.

“Timberland delivered solid third fiscal quarter results, driven by continued net interest margin expansion and steady balance sheet growth,” stated Dean Brydon, Chief Executive Officer. “Net income and earnings per share increased 20% and 22%, respectively, compared to the third fiscal quarter a year ago. Compared to the prior quarter, net income and earnings per share increased 5% and 6%, respectively, primarily due to higher net interest income and non-interest income. We also posted year-over-year improvements across all key profitability metrics, and our tangible book value per share (non-GAAP) continued its upward trend. Looking ahead we believe our strong capital position, solid earnings, and continued focus on disciplined growth position us well to navigate the current environment and drive long-term shareholder value.”

“As a result of Timberland’s strong earnings and sound capital position, our Board of Directors announced a quarterly cash dividend to shareholders of $0.26 per share, payable on August 22, 2025, to shareholders of record on August 8, 2025,” stated Jonathan Fischer, President and Chief Operating Officer. “This represents the 51st consecutive quarter Timberland will have paid a cash dividend. In addition, the Company also announced the adoption of a new stock repurchase program. We believe Timberland stock presents a strong investment opportunity, and buying back shares is a strategy to enhance long-term value for shareholders. Under the new repurchase program, the Company may repurchase up to 5% of the outstanding shares, or 393,842 shares. The new stock repurchase program replaces our existing stock repurchase program, which had 31,762 shares available to be repurchased.”

“Our net interest margin continued to show positive momentum in the third fiscal quarter, expanding to 3.80%,” said Marci Basich, Chief Financial Officer. “This represents a one basis point increase from the prior quarter and a 27 basis point improvement compared to the same period last year, reflecting our disciplined asset-liability management and favorable shift in earning asset yields. Total deposits grew by $19 million, or 1%, during the quarter, driven primarily by higher balances in certificates of deposit. This growth highlights the continued strength of our customer relationships and the effectiveness of our deposit-gathering strategies. We remain focused on maintaining a well-balanced funding mix while sustaining stable margin performance going forward.”

“The loan portfolio continues to expand at a steady pace, with growth of 2% over the prior quarter and 3% year-over year,” Brydon continued. “Credit quality remains an area we are monitoring closely, as we are seeing a mix of stable-to-positive trends alongside a few metrics that have shown modest deterioration. Net charge-offs continue to be minimal, with net recoveries of $1,000 during the third quarter. Our non-performing assets (“NPA”) ratio increased to 0.21% at June 30, 2025, compared to 0.13% at the end of the prior quarter. However, it remains a slight improvement from the 0.22% reported a year ago. Although non-accrual loans increased this quarter primarily due to a single matured loan, total non-accrual balances remain modestly below year-ago levels.”

Earnings and Balance Sheet Highlights (at or for the periods ended June 30, 2025, compared to June 30, 2024, or March 31, 2025):

Earnings Highlights:

Earnings per diluted common share (“EPS”) increased 6% to $0.90 for the current quarter from $0.85 for the preceding quarter and increased 22% from $0.74 for the comparable quarter one year ago; EPS increased 18% to $2.60 for the first nine months of fiscal 2025 from $2.21 for the first nine months of fiscal 2024;
Net income increased 5% to $7.10 million for the current quarter from $6.76 million for the preceding quarter and increased 20% from $5.92 million for the comparable quarter one year ago; Net income increased 16% to $20.72 million for the first nine months of fiscal 2025 from $17.93 million for the first nine months of fiscal 2024;
Return on average equity (“ROE”) and return on average assets (“ROA”) for the current quarter were 11.23% and 1.47%, respectively;
Net interest margin (“NIM”) for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable quarter one year ago; and
The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year ago.

Balance Sheet Highlights:

Total assets increased 1% from the prior quarter and increased 3% year-over-year;
Net loans receivable increased 2% from the prior quarter and increased 3% year-over-year;
Total deposits increased 1% from the prior quarter and increased 3% year-over-year;
Total shareholders’ equity increased 2% from the prior quarter and increased 6% year-over-year; 34,236 shares of common stock were repurchased during the current quarter for $1.02 million;
Non-performing assets to total assets ratio was 0.21% at June 30, 2025 compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024;
Book and tangible book (non-GAAP) values per common share increased to $32.58 and $30.62 respectively, at June 30, 2025; and
Liquidity (both on-balance sheet and off-balance sheet) remained strong at June 30, 2025 with only $20 million in borrowings and additional secured borrowing line capacity of $674 million available through the Federal Home Loan Bank (“FHLB”) and the Federal Reserve.

Operating Results

Operating revenue (net interest income before the provision for credit losses plus non-interest income) for the current quarter increased 3% to $20.50 million from $19.90 million for the preceding quarter and increased 9% from $18.77 million for the comparable quarter one year ago. The increase in operating revenue compared to the preceding quarter was primarily due to increases in total interest and dividend income and non-interest income, which were partially offset by an increase in total funding costs. Operating revenue increased 8% to $60.06 million for the first nine months of fiscal 2025 from $55.82 million for the first nine months of fiscal 2024, primarily due to an increase in total interest and dividend income, which was partially offset by an increase in funding costs.

Net interest income increased $409,000, or 2%, to $17.62 million for the current quarter from $17.21 million for the preceding quarter and increased $1.64 million, or 10%, from $15.98 million for the comparable quarter one year ago. The increase in net interest income compared to the preceding quarter was primarily due to a $20.80 million increase in the average balance of total interest-earning assets and, to a lesser extent, a two-basis point increase in the weighted average yield on total interest-earning assets to 5.50% from 5.48%. These increases were partially offset by a $20.21 million increase in the average balance of interest-bearing liabilities and a two-basis point increase in the weighted average cost of interest-bearing liabilities. Timberland’s NIM for the current quarter expanded to 3.80% from 3.79% for the preceding quarter and 3.53% for the comparable quarter one year ago. The NIM for the current quarter was increased by approximately four basis points due to the collection of $102,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $68,000 of the fair value discount on acquired loans. The NIM for the preceding quarter was increased by approximately five basis points due to the collection of $201,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $17,000 of the fair value discount on acquired loans. The NIM for the comparable quarter one year ago was increased by approximately three basis points due to the collection of $124,000 in pre-payment penalties, non-accrual interest, and late fees, and the accretion of $9,000 of the fair value discount on acquired loans. Net interest income for the first nine months of fiscal 2025 increased $4.19 million, or 9%, to $51.81 million from $47.62 million for the first nine months of fiscal 2024, primarily due to a 32 basis point increase in the weighted average yield of total interest-earning assets to 5.49% from 5.17% and a $49.96 million increase in the average balance of total interest-earning assets. These increases to net interest income were partially offset by a seven basis point increase in the weighted average cost of interest-bearing liabilities to 2.53% from 2.46% and a $58.86 million increase in the average balance of total interest-bearing liabilities. Timberland’s NIM expanded to 3.74% for the first nine months of fiscal 2025 from 3.53% for the first nine months of fiscal 2024.

A $351,000 provision for credit losses on loans was recorded for the quarter ended June 30, 2025. The provision was primarily due to loan portfolio growth and changes in the composition of the loan portfolio. This compares to a $237,000 provision for credit losses on loans for the preceding quarter and a $264,000 provision for credit losses on loans for the comparable quarter one year ago. In addition, a $93,000 provision for credit losses on unfunded commitments and a $4,000 recapture of credit losses on investment securities were recorded for the current quarter.

Non-interest income increased $188,000, or 7%, to $2.88 million for the current quarter from $2.69 million for the preceding quarter and increased $84,000, or 3%, from $2.79 million for the comparable quarter one year ago. The increase in non-interest income compared to the preceding quarter was primarily due to an increase in ATM and debit card interchange transaction fees and smaller changes in several other categories. Fiscal year-to-date non-interest income increased by 1%, to $8.26 million from $8.20 million for the first nine months of fiscal 2024.

Total operating (non-interest) expenses for the current quarter decreased $27,000 (less than 1%), to $11.17 million from $11.19 million for the preceding quarter and increased $98,000, or 1%, from $11.07 million for the comparable quarter one year ago. The decrease in operating expenses compared to the preceding quarter was primarily due to decreases in salaries and employee benefits, premises and equipment, technology and communications, professional fees, and smaller decreases in several other expense categories. These decreases were partially offset by increases in state and local taxes and smaller increases in several other expense categories. The efficiency ratio for the current quarter improved to 54.48% from 56.25% for the preceding quarter and 58.97% for the comparable quarter one year ago. Fiscal year-to-date operating expenses increased 2% to $33.43 million from $32.68 million for the first nine months of fiscal 2024. The efficiency ratio for the first nine months of fiscal 2025 improved to 55.65% from 58.55% for the first nine months of fiscal 2024.

The provision for income taxes for the current quarter increased $85,000, or 5%, to $1.79 million from $1.71 million for the preceding quarter, primarily due to higher taxable income. Timberland’s effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to 20.2% for the quarter ended March 31, 2025 and 20.6% for the quarter ended June 30, 2024. Timberland’s effective income tax rate was 20.1% for the first nine months of fiscal 2025 compared to 20.2% for the first nine months of fiscal 2024.

Balance Sheet Management

Total assets increased $24.46 million, or 1%, during the quarter to $1.96 billion at June 30, 2025 from $1.93 billion at March 31, 2025 and increased $56.56 million, or 3%, from $1.90 billion one year ago. The increase during the current quarter was primarily due to a $21.42 million increase in net loans receivable and smaller increases in several other categories.

Liquidity

Timberland has continued to maintain a strong liquidity position, both on-balance sheet and off-balance sheet. Liquidity, as measured by the sum of cash and cash equivalents, CDs held for investment, and available for sale investment securities, was 17.0% of total liabilities at June 30, 2025, compared to 16.9% at March 31, 2025, and 14.7% one year ago. Timberland also had secured borrowing line capacity of $674 million available through the FHLB and the Federal Reserve at June 30, 2025. With a strong and diversified deposit base, only 17% of Timberland’s deposits were uninsured or uncollateralized at June 30, 2025. (Note: This calculation excludes public deposits that are fully collateralized.)

Loans

Net loans receivable increased $21.42 million, or 2%, during the quarter to $1.44 billion at June 30, 2025 from $1.42 billion at March 31, 2025. This increase was primarily due to a $21.83 million increase in multi-family loans, a $5.67 million increase in commercial real estate loans, a $3.89 million increase in land loans and smaller increases in several other loan categories. These increases were partially offset by a $5.50 million decrease in construction loans, a $4.80 million decrease in commercial business loans, and smaller decreases in several other loan categories. The increase in multi-family loans was, in large part, due to several multi-family construction projects being completed and converting to permanent financing during the quarter.

Loan Portfolio ($ in thousands)

	June 30, 2025			March 31, 2025				June 30, 2024
	Amount		Percent	Amount		Percent		Amount		Percent
Mortgage loans:
One- to four-family (a)	$317,574		21%	$315,421		21%		$288,611		19%
Multi-family		200,418	13		178,590	12			177,950	12
Commercial		607,924	40		602,248	40			597,865	40
Construction – custom and
owner/builder		128,900	8		114,401		7		128,222	9
Construction – speculative one-to four-family		9,595	1		9,791	1			11,441	1
Construction – commercial		15,992	1		22,352	1			32,130	2
Construction – multi-family		32,731	2		46,602	3			35,631	2
Construction – land
development		15,461	1		15,032	1			19,104	1
Land		36,193	2		32,301	2			32,384	2
Total mortgage loans		1,364,788	89		1,336,738	88			1,323,338	88

Consumer loans:
Home equity and second
mortgage		47,511	3		47,458	3			43,679	3
Other		2,176	—		2,375	—			3,121	—
Total consumer loans		49,687	3		49,833	3			46,800	3

Commercial loans:
Commercial business loans		126,497	8		131,243	9			136,213	9
SBA PPP loans		101	—		156	—			314	—
Total commercial loans		126,598	8		131,399	9			136,527	9
Total loans		1,541,073	100%		1,517,970	100%			1,506,665	100%
Less:
Undisbursed portion of
construction loans in
process		(76,272)			(75,042)				(87,196)
Deferred loan origination
fees		(5,427)			(5,329)				(5,404)
Allowance for credit losses		(17,878)			(17,525)				(17,046)
Total loans receivable, net	$1,441,496			$1,420,074				$1,397,019

_______________________
(a) Does not include one- to four-family loans held for sale totaling $1,763, $1,151, and $1,795 at June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

The following table provides a breakdown of commercial real estate (“CRE”) mortgage loans by collateral type as of June 30, 2025:

CRE Loan Portfolio Breakdown by Collateral ($ in thousands)
Collateral Type	Balance		Percent of CRE Portfolio	Percent of Total Loan Portfolio	Average Balance Per Loan		Non- Accrual
Industrial warehouses	$128 822		21%	8%	$1 301		$161
Medical/dental offices		81 238	13	5		1 269		—
Office buildings		68 916	11	5		801		—
Other retail buildings		54 472	9	3		567		—
Mini-storage		38 483	6	2		1 539		—
Hotel/motel		31 656	5	2		2 638		—
Restaurants		27 485	5	2		585		—
Gas stations/conv. stores		24 359	4	2		1 015		—
Churches		14 690	3	1		918		—
Nursing homes		13 532	2	1		2 255		—
Shopping centers		10 507	2	1		1 751		—
Mobile home parks		8 882	2	1		444		—
Additional CRE		104 882	17	7		760		—
Total CRE	$607 924		100%	40%	$951		$161

Timberland originated $81.99 million in loans during the quarter ended June 30, 2025, compared to $56.76 million for the preceding quarter and $74.32 million for the comparable quarter one year ago. Timberland continues to originate fixed-rate one- to four-family mortgage loans, a portion of which are sold into the secondary market for asset-liability management purposes and to generate non-interest income. During the current quarter, fixed-rate one- to four-family mortgage loans totaling $5.11 million were sold compared to $5.17 million for the preceding quarter and $3.05 million for the comparable quarter one year ago.

Investment Securities

Timberland’s investment securities and CDs held for investment increased $2.04 million, or 1%, to $237.36 million at June 30, 2025, from $235.33 million at March 31, 2025. The increase was primarily due to the purchase of additional U.S. government agency mortgage-backed investment securities and U.S. Treasury investment securities. Partially offsetting these increases was the sale of $13.49 million available for sale investment securities, which resulted in a net gain of $24,000.

Deposits

Total deposits increased $18.65 million, or 1%, during the quarter to $1.67 billion at June 30, 2025, from $1.65 billion at March 31, 2025. The quarter’s increase consisted of a $16.01 million increase in certificates of deposit account balances, a $4.66 million increase in money market account balances, and a $1.60 million increase in NOW checking account balances. These decreases were partially offset by a $2.03 million decrease in savings account balances and a $1.59 million decrease in non-interest-bearing checking account balances.

Deposit Breakdown ($ in thousands)

	June 30, 2025		March 31, 2025		June 30, 2024
	Amount	Percent	Amount	Percent	Amount	Percent
Non-interest-bearing demand	$406,222	24%	$407,811	25%	$407,125	25%
NOW checking	334,922	20	333,325	20	324,795	20
Savings	205,829	12	207,857	13	207,921	13
Money market	305,207	18	300,552	18	327,162	20
Certificates of deposit under $250	244,063	15	227,137	14	195,022	12
Certificates of deposit $250 and over	126,254	8	124,009	7	117,788	7
Certificates of deposit – brokered	46,980	3	50,139	3	48,731	3
Total deposits	$1,669,477	100%	$1,650,830	100%	$1,628,544	100%

Borrowings

Total borrowings were $20.00 million at both June 30, 2025 and March 31, 2025. At June 30, 2025, the weighted average rate on the borrowings was 3.97%.

Shareholders’ Equity and Capital Ratios

Total shareholders’ equity increased $4.14 million, or 2%, to $256.66 million at June 30, 2025, from $252.52 million at March 31, 2025, and increased $15.44 million, or 6%, from $241.22 million at June 30, 2024. The increase in shareholders’ equity during the quarter was primarily due to net income of $7.10 million, which was partially offset by the payment of $2.05 million in dividends to shareholders and the repurchase of 34,236 shares of common stock for $1.02 million (an average price of $29.74 per share).

Timberland remains well capitalized with a total risk-based capital ratio of 20.54%, a Tier 1 leverage capital ratio of 12.63%, a tangible common equity to tangible assets ratio (non-GAAP) of 12.42%, and a shareholders’ equity to total assets ratio of 13.11% at June 30, 2025. Timberland’s held to maturity investment securities were $141.57 million at June 30, 2025, with a net unrealized loss of $5.99 million (pre-tax). Although not permitted by U.S. Generally Accepted Accounting Principles (“GAAP”), including these unrealized losses in accumulated other comprehensive income (loss) (“AOCI”) would result in a ratio of shareholders’ equity to total assets of 12.90%, compared to 13.11%, as reported.

New Stock Repurchase Program

The Company announced a new stock repurchase program today. Under the repurchase program, the Company may repurchase up to 5% of the Company’s outstanding shares, or 393,842 shares. The new stock repurchase program replaces the existing stock repurchase program which had 31,762 shares available to be repurchased.

The repurchase program permits shares to be repurchased in open market or private transactions, through block trades, and pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission (“SEC”). Repurchases will be made at management’s discretion at prices management considers to be attractive and in the best interest of both the Company and its shareholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the Company’s financial performance. Open market purchases will be conducted in accordance with the limitations set forth in Rule 10b-18 of the SEC and other applicable legal requirements. The repurchase program may be suspended, terminated, or modified at any time for any reason, including market conditions, the cost of repurchasing the shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The repurchase program does not obligate the Company to purchase any particular number of shares.

Asset Quality
Timberland’s non-performing assets to total assets ratio was 0.21% at June 30, 2025, compared to 0.13% at March 31, 2025 and 0.22% at June 30, 2024. Net recoveries totaled $1,000 for the current quarter compared to net charge-offs of less than $1,000 for the preceding quarter and net charge-offs of $36,000 for the comparable quarter one year ago. During the current quarter, provisions for credit losses of $351,000 on loans and $93,000 unfunded commitments were made, which was partially offset by a $4,000 recapture of credit losses on investment securities. The allowance for credit losses (“ACL”) for loans as a percentage of loans receivable was 1.23% at June 30, 2025, compared to 1.22% at March 31, 2025 and 1.21% one year ago.

Total delinquent loans (past due 30 days or more) and non-accrual loans increased $2.86 million or 86%, to $6.18 million at June 30, 2025, from $3.32 million at March 31, 2025 and increased $1.95 million, or 46%, from $4.23 million at June 30, 2024. Non-accrual loans increased $1.52 million, or 65%, to $3.84 million at June 30, 2025 from $2.33 million at March 31, 2025 and decreased $277,000, or 7%, from $4.12 million at March 31, 2024. The quarterly increase in non-accrual loans was primarily due to one loan (secured by several single family homes) being past maturity. The loan is well collateralized (based on recent appraisals) and the Bank is working with the borrower to renew the loan. Loans graded “Substandard” totaled $32.37 million (or 2% of total loans receivable) at June 30, 2025.

Non-Accrual Loans ($ in thousands)

	June 30, 2025			March 31, 2025			June 30, 2024
	Amount		Quantity	Amount		Quantity	Amount		Quantity
Mortgage loans:
One- to four-family	$1,781		1	$47		1	$135		2
Commercial		161	2		324	3		1,310	4
Construction – custom and
owner/builder		—	—		—	—		152	1
Total mortgage loans		1,942	3		371	4		1,597	7

Consumer loans:
Home equity and second
mortgage		575	3		575	3		615	3
Other		—	—		—	—		—	—
Total consumer loans		575	3		575	3		615	3

Commercial business loans		1,326	9		1,381	11		1,908	8
Total loans	$3,843		15	$2,327		18	$4,120		18

Timberland had two properties classified as other real estate owned (“OREO”) at June 30, 2025:

	June 30, 2025			March 31, 2025			June 30, 2024
	Amount		Quantity	Amount		Quantity	Amount		Quantity
Other real estate owned:
Commercial	$221		1	$221		1	$	—	—
Land		—	1		—	1		—	1
Total mortgage loans	$221		2	$221		2	$	—	1

About Timberland Bancorp, Inc.
Timberland Bancorp, Inc., a Washington corporation, is the holding company for Timberland Bank. The Bank opened for business in 1915 and primarily serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington with a full range of lending and deposit services through its 23 branches (including its main office in Hoquiam).

Disclaimer
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements are not statements of historical fact, are based on certain assumptions and often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would” and “could.” Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about future economic performance. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results anticipated or implied by our forward-looking statements, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; continuing elevated levels of inflation and the impact of current and future monetary policies of the Board of Governors of the Federal Reserve System (“Federal Reserve”) in response thereto; the effects of any federal government shutdown; credit risks of lending activities, including any deterioration in the housing and commercial real estate markets which may lead to increased losses and non-performing loans in our loan portfolio resulting in our ACL not being adequate to cover actual losses and thus requiring us to materially increase our ACL through the provision for credit losses; changes in general economic conditions, either nationally or in our market areas; changes in the levels of general interest rates, and the relative differences between short and long-term interest rates, deposit interest rates, our net interest margin and funding sources; fluctuations in the demand for loans, the number of unsold homes, land and other properties and fluctuations in real estate values in our market areas; secondary market conditions for loans and our ability to sell loans in the secondary market; results of examinations of us by the Federal Reserve and of our bank subsidiary by the Federal Deposit Insurance Corporation (“FDIC”), the Washington State Department of Financial Institutions, Division of Banks or other regulatory authorities, including the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; legislative or regulatory changes that adversely affect our business including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; our ability to attract and retain deposits; our ability to control operating costs and expenses; the use of estimates in determining fair value of certain of our assets, which estimates may prove to be incorrect and result in significant declines in valuation; difficulties in reducing risks associated with the loans in our consolidated balance sheet; staffing fluctuations in response to product demand or the implementation of corporate strategies that affect our work force and potential associated charges; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform several of our critical processing functions; our ability to retain key members of our senior management team; costs and effects of litigation, including settlements and judgments; our ability to implement our business strategies; our ability to manage loan delinquency rates; increased competitive pressures among financial services companies; changes in consumer spending, borrowing and savings habits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; our ability to pay dividends on our common stock; the quality and composition of our securities portfolio and the impact if any adverse changes in the securities markets, including on market liquidity; inability of key third-party providers to perform their obligations to us; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board (“FASB”), including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; the economic impact of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; other economic, competitive, governmental, regulatory, and technological factors affecting our operations, pricing, products and services; and other risks described elsewhere in this press release and in the Company’s other reports filed with or furnished to the Securities and Exchange Commission.

Any of the forward-looking statements that we make in this press release and in the other public statements we make are based upon management’s beliefs and assumptions at the time they are made. We do not undertake and specifically disclaim any obligation to publicly update or revise any forward-looking statements included in this press release to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed in this document might not occur and we caution readers not to place undue reliance on any forward-looking statements. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of, us, and could negatively affect the Company’s consolidated financial condition and results of operations as well as its stock price performance.

TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME		Three Months Ended
($ in thousands, except per share amounts) (unaudited)		June 30,		March 31,		June 30,
			2025		2025		2024
	Interest and dividend income
	Loans receivable	$21,411		$20,896		$19,537
	Investment securities		2,064		2,003		2,335
	Dividends from mutual funds, FHLB stock and other investments		83		82		94
	Interest bearing deposits in banks		1,986		1,884		2,173
	Total interest and dividend income		25,544		24,865		24,139

	Interest expense
	Deposits		7,721		7,454		7,938
	Borrowings		201		198		220
	Total interest expense		7,922		7,652		8,158
	Net interest income		17,622		17,213		15,981
	Provision for credit losses – loans		351		237		264
	Recapture of credit losses – investment securities		(4)		(5)		(12)
	Prov. for (recapture of ) credit losses – unfunded commitments		93		14		(8)
	Net int. income after provision for (recapture of) credit losses		17,182		16,967		15,737

	Non-interest income
	Service charges on deposits		966		959		1,014
	ATM and debit card interchange transaction fees		1,262		1,176		1,297
	Gain on sales of investment securities, net		24		—		—
	Gain on sales of loans, net		138		122		68
	Bank owned life insurance (“BOLI”) net earnings		171		165		158
	Other		314		265		254
	Total non-interest income, net		2,875		2,687		2,791

	Non-interest expense
	Salaries and employee benefits		5,825		5,977		5,928
	Premises and equipment		973		1,075		1,011
	Gain on sale of premises and equipment, net		—		—		(3)
	Advertising		182		189		211
	OREO and other repossessed assets, net		8		9		—
	ATM and debit card processing		658		521		580
	Postage and courier		137		142		130
	State and local taxes		570		335		335
	Professional fees		341		431		335
	FDIC insurance		211		219		208
	Loan administration and foreclosure		99		155		156
	Technology and communications		993		1,121		1,086
	Deposit operations		345		319		450
	Amortization of core deposit intangible (“CDI”)		45		45		56
	Other, net		780		656		586
	Total non-interest expense, net		11,167		11,194		11,069

	Income before income taxes		8,890		8,460		7,459
	Provision for income taxes		1,790		1,705		1,535
	Net income	$7,100		$6,755		$5,924

	Net income per common share:
	Basic	$0.90		$0.85		$0.74
	Diluted		0.90		0.85		0.74

	Weighted average common shares outstanding:
	Basic		7,893,308		7,937,063		8,004,552
	Diluted		7,921,762		7,968,632		8,039,345

TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME		Nine Months Ended
($ in thousands, except per share amounts) (unaudited)		June 30,		June 30,
			2025		2024
	Interest and dividend income
	Loans receivable	$63,339		$56,841
	Investment securities		6,205		6,892
	Dividends from mutual funds, FHLB stock and other investments		252		266
	Interest bearing deposits in banks		5,870		5,791
	Total interest and dividend income		75,666		69,790

	Interest expense
	Deposits		23,259		21,383
	Borrowings		602		787
	Total interest expense		23,861		22,170
	Net interest income		51,805		47,620
	Provision for credit losses – loans		640		810
	Recapture of credit losses – investment securities		(14)		(20)
	Prov. for (recapture of) credit losses – unfunded commitments		87		(130)
	Net int. income after provision for (recapture of) credit losses		51,092		46,960

	Non-interest income
	Service charges on deposits		2,924		3,024
	ATM and debit card interchange transaction fees		3,706		3,773
	Gain on sales of investment securities, net		24		—
	Gain on sales of loans, net		303		188
	Bank owned life insurance (“BOLI”) net earnings		503		470
	Other		799		749
	Total non-interest income, net		8,259		8,204

	Non-interest expense
	Salaries and employee benefits		17,893		17,863
	Premises and equipment		2,998		3,065
	Gain on sale of premises and equipment, net		—		(3)
	Advertising		552		556
	OREO and other repossessed assets, net		17		1
	ATM and debit card processing		1,700		1,796
	Postage and courier		401		401
	State and local taxes		1,251		979
	Professional fees		1,118		908
	FDIC insurance		640		624
	Loan administration and foreclosure		383		395
	Technology and communications		3,253		3,101
	Deposit operations		997		1,094
	Amortization of core deposit intangible (“CDI”)		135		169
	Other, net		2,090		1,735
	Total non-interest expense, net		33,428		32,684

	Income before income taxes		25,923		22,480
	Provision for income taxes		5,208		4,552
	Net income	$20,715		$17,928

	Net income per common share:
	Basic	$2.61		$2.22
	Diluted		2.60		2.21

	Weighted average common shares outstanding:
	Basic		7,929,626		8,067,068
	Diluted		7,963,412		8,109,043

TIMBERLAND BANCORP INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share amounts) (unaudited)		June 30,		March 31,		June 30,
			2025		2025		2024
Assets
Cash and due from financial institutions		$32,532		$26,010		$25,566
Interest-bearing deposits in banks			161,095		165,201		133,347
	Total cash and cash equivalents		193,627		191,211		158,913

Certificates of deposit (“CDs”) held for investment, at cost			8,462		8,711		10,458
Investment securities:
	Held to maturity, at amortized cost (net of ACL – investment securities)		141,570		140,954		176,787
	Available for sale, at fair value		86,475		84,807		74,515
Investments in equity securities, at fair value			855		853		836
FHLB stock			2,045		2,045		2,037
Other investments, at cost			3,000		3,000		3,000
Loans held for sale			1,763		1,151		1,795

Loans receivable			1,459,374		1,437,599		1,414,065
Less: ACL – loans			(17,878)		(17,525)		(17,046)
	Net loans receivable		1,441,496		1,420,074		1,397,019

Premises and equipment, net			21,490		21,436		21,558
OREO and other repossessed assets, net			221		221		—
BOLI			24,113		23,942		23,436
Accrued interest receivable			7,174		7,127		7,045
Goodwill			15,131		15,131		15,131
CDI			316		361		508
Loan servicing rights, net			911		1,051		1,526
Operating lease right-of-use assets			1,248		1,324		1,550
Other assets			7,295		9,331		4,515
	Total assets	$1,957,192		$1,932,730		$1,900,629

Liabilities and shareholders’ equity
Deposits: Non-interest-bearing demand		$406,222		$407,811		$407,125
Deposits: Interest-bearing			1,263,255		1,243,019		1,221,419
	Total deposits		1,669,477		1,650,830		1,628,544

Operating lease liabilities			1,350		1,426		1,649
FHLB borrowings			20,000		20,000		20,000
Other liabilities and accrued expenses			9,701		7,950		9,213
	Total liabilities		1,700,528		1,680,206		1,659,406

Shareholders’ equity
Common stock, $.01 par value; 50,000,000 shares authorized; 7,876,853 shares issued and outstanding – June 30, 2025 7,903,489 shares issued and outstanding – March 31, 2025 7,953,431 shares issued and outstanding – June 30, 2024			27,226		28,028		30,681
Retained earnings			230,213		225,166		211,087
Accumulated other comprehensive loss			(775)		(670)		(545)
	Total shareholders’ equity		256,664		252,524		241,223
	Total liabilities and shareholders’ equity	$1,957,192		$1,932,730		$1,900,629

	Three Months Ended
PERFORMANCE RATIOS:		June 30, 2025		March 31, 2025		June 30, 2024
Return on average assets (a)			1.47%		1.43%		1.25%
Return on average equity (a)			11.23%		10.95%		9.95%
Net interest margin (a)			3.80%		3.79%		3.53%
Efficiency ratio			54.48%		56.25%		58.97%

	Nine Months Ended
		June 30, 2025				June 30, 2024
Return on average assets (a)			1.44%				1.27%
Return on average equity (a)			11.07%				10.10%
Net interest margin (a)			3.74%				3.53%
Efficiency ratio			55.65%				58.55%

	Three Months Ended
ASSET QUALITY RATIOS AND DATA: ($ in thousands)		June 30, 2025		March 31, 2025		June 30, 2024
Non-accrual loans		$3,843		$2,327		$4,120
Loans past due 90 days and still accruing			—		—		—
Non-performing investment securities			38		41		72
OREO and other repossessed assets			221		221		—
Total non-performing assets (b)		$4,102		$2,589		$4,192

Non-performing assets to total assets (b)			0.21%		0.13%		0.22%
Net charge-offs (recoveries) during quarter		$(1)		$	—	$36
Allowance for credit losses – loans to non-accrual loans			465%		753%		414%
Allowance for credit losses – loans to loans receivable (c)			1.23%		1.22%		1.21%


CAPITAL RATIOS:
Tier 1 leverage capital			12.63%		12.55%		12.04%
Tier 1 risk-based capital			19.29%		19.04%		17.97%
Common equity Tier 1 risk-based capital			19.29%		19.04%		17.97%
Total risk-based capital			20.54%		20.29%		19.22%
Tangible common equity to tangible assets (non-GAAP)			12.42%		12.36%		11.97%

BOOK VALUES:
Book value per common share		$32.58		$31.95		$30.33
Tangible book value per common share (d)			30.62		29.99		28.36

________________________________________________

(a) Annualized
(b) Non-performing assets include non-accrual loans, loans past due 90 days and still accruing, non-performing investment securities and OREO and other repossessed assets.
(c) Does not include loans held for sale and is before the allowance for credit losses.
(d) Tangible common equity divided by common shares outstanding (non-GAAP).

AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
($ in thousands)
(unaudited)

	For the Three Months Ended
	June 30, 2025					March 31, 2025					June 30, 2024
	Amount			Rate		Amount			Rate		Amount			Rate

Assets
Loans receivable and loans held for sale	$	1,450,350		5.92	%	$	1,435,999		5.90	%	$	1,391,582		5.65	%
Investment securities and FHLB stock (1)		232,272		3.71			232,532		3.64			268,954		3.63
Interest-earning deposits in banks and CDs		178,887		4.45			172,175		4.44			161,421		5.41
Total interest-earning assets		1,861,509		5.50			1,840,706		5.48			1,821,957		5.33
Other assets		79,715					77,563					82,008
Total assets	$	1,941,224				$	1,918,269				$	1,903,965

Liabilities and Shareholders’ Equity
NOW checking accounts	$	333,074		1.39	%	$	328,115		1.32	%	$	329,344		1.29	%
Money market accounts		304,526		3.16			306,137		3.18			326,023		3.56
Savings accounts		205,592		0.35			206,054		0.28			208,488		0.27
Certificates of deposit accounts		363,342		3.77			343,945		3.82			311,545		4.21
Brokered CDs		48,028		4.83			50,104		4.85			45,442		5.32
Total interest-bearing deposits		1,254,562		2.47			1,234,355		2.45			1,220,842		2.62
Borrowings		20,002		4.03			20,000		4.04			20,001		4.42
Total interest-bearing liabilities		1,274,564		2.49			1,254,355		2.47			1,240,843		2.64

Non-interest-bearing demand deposits		402,717					403,738					413,494
Other liabilities		10,266					10,064					10,245
Shareholders’ equity		253,677					250,112					239,383
Total liabilities and shareholders’ equity	$	1,941,224				$	1,918,269				$	1,903,965

Interest rate spread				3.01	%				3.01	%				2.69	%
Net interest margin (2)				3.80	%				3.79	%				3.53	%
Average interest-earning assets to
average interest-bearing liabilities		146.05	%				146.75	%				146.83	%

           _____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
      average interest-earning assets

AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands)
(unaudited)

	For the Nine Months Ended
	June 30, 2025					June 30, 2024
	Amount			Rate		Amount			Rate

Assets
Loans receivable and loans held for sale	$	1,441,506		5.87	%	$	1,363,213		5.57	%
Investment securities and FHLB stock (1)		237,400		3.81			294,789		3.24
Interest-earning deposits in banks and CDs		172,591		4.55			143,537		5.39
Total interest-earning assets		1,851,497		5.49			1,801,539		5.17
Other assets		77,595					81,650
Total assets	$	1,929,092				$	1,883,189

Liabilities and Shareholders’ Equity
NOW checking accounts	$	329,883		1.36	%	$	358,052		1.48	%
Money market accounts		311,762		3.26			273,683		3.09
Savings accounts		205,764		0.30			214,275		0.24
Certificates of deposit accounts		346,313		3.89			291,707		4.12
Brokered CDs		48,169		4.71			42,856		5.37
Total interest-bearing deposits		1,241,891		2.50			1,180,573		2.42
Borrowings		20,001		4.02			22,457		4.68
Total interest-bearing liabilities		1,261,892		2.53			1,203,030		2.46

Non-interest-bearing demand deposits		406,906					431,849
Other liabilities		10,159					11,273
Shareholders’ equity		250,135					237,037
Total liabilities and shareholders’ equity	$	1,929,092				$	1,883,189

Interest rate spread				2.96	%				2.71	%
Net interest margin (2)				3.74	%				3.53	%
Average interest-earning assets to
average interest-bearing liabilities		146.72	%				149.75	%

_____________________________________
(1) Includes other investments
(2) Net interest margin = annualized net interest income /
average interest-earning assets

Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. Timberland believes that certain non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance; however, readers of this report are urged to review these non-GAAP financial measures in conjunction with GAAP results as reported.

Financial measures that exclude intangible assets are non-GAAP measures. To provide investors with a broader understanding of capital adequacy, Timberland provides non-GAAP financial measures for tangible common equity, along with the GAAP measure. Tangible common equity is calculated as shareholders’ equity less goodwill and CDI. In addition, tangible assets equal total assets less goodwill and CDI.

The following table provides a reconciliation of ending shareholders’ equity (GAAP) to ending tangible shareholders’ equity (non-GAAP) and ending total assets (GAAP) to ending tangible assets (non-GAAP).

($ in thousands)	June 30, 2025		March 31, 2025		June 30, 2024

Shareholders’ equity	$	256,664	$	252,524	$	241,223
Less goodwill and CDI		(15,447)		(15,492)		(15,639)
Tangible common equity	$	241,217	$	237,032	$	225,584

Total assets	$	1,957,192	$	1,932,730	$	1,900,629
Less goodwill and CDI		(15,447)		(15,492)		(15,639)
Tangible assets	$	1,941,745	$	1,917,238	$	1,884,990

Contact: Dean J. Brydon, CEO
Jonathan A. Fischer, President & COO
Marci A. Basich, CFO
(360) 533-4747
www.timberlandbank.com

The MIL Network –

July 23, 2025

MIL-OSI: First Busey Corporation Announces 2025 Second Quarter Earnings

Source: GlobeNewswire (MIL-OSI)

LEAWOOD, Kan., July 22, 2025 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE) Announces 2025 Second Quarter Earnings.

Net Income	Diluted EPS	Net Interest Margin¹	ROAA¹	ROATCE¹
$47.4 million	$0.52	3.49%	1.00%	11.24%
$57.4 million (adj)²	$0.63 (adj)²	3.33% (adj)²	1.21% (adj)²	13.61% (adj)²

MESSAGE FROM OUR CHAIRMAN & CEO

This quarter’s bank merger and data conversion represents a significant milestone for our organization, as we officially welcome CrossFirst Bank customers to Busey Bank. We are proud to offer a premier, full-service banking experience for both consumer and commercial clients, with 78 locations spanning 10 states. Our comprehensive services also include a robust wealth management platform and cutting-edge payment technology solutions through FirsTech, Inc. This transformational partnership allows us to enhance Busey’s rich 157-year legacy of service excellence, further advancing our organization for the benefit of all our Pillars—associates, customers, communities, and shareholders.

Van A. Dukeman
Chairman and Chief Executive Officer

FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME *(unaudited)*

	Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Total interest income	$	247,446		$	166,815		$	131,939		$	414,261		$	257,759
Total interest expense		94,263			63,084			49,407			157,347			99,373
Net interest income		153,183			103,731			82,532			256,914			158,386
Provision for credit losses¹		5,700			45,593			1,908			51,293			6,268
Net interest income after provision for credit losses¹		147,483			58,138			80,624			205,621			152,118
Total noninterest income		44,863			21,223			33,703			66,086			68,616
Total noninterest expense¹		127,833			112,030			75,906			239,863			147,353
Income (loss) before income taxes		64,513			(32,669	)		38,421			31,844			73,381
Income taxes		17,109			(2,679	)		11,064			14,430			19,799
Net income (loss)		47,404			(29,990	)		27,357			17,414			53,582
Dividends on preferred stock		155			—			—			155			—
Net income (loss) available to common stockholders	$	47,249		$	(29,990	)	$	27,357		$	17,259		$	53,582

Basic earnings (loss) per common share	$	0.53		$	(0.44	)	$	0.48		$	0.22		$	0.95
Diluted earnings (loss) per common share	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94
Effective income tax rate		26.52	%		8.20	%		28.80	%		45.31	%		26.98	%

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.

Following the acquisition of CrossFirst Bankshares, Inc. (“CrossFirst”) and its subsidiary CrossFirst Bank, by First Busey Corporation, the holding company for Busey Bank, in the first quarter of 2025, CrossFirst Bank was merged with and into Busey Bank (the “Bank Merger”) on June 20, 2025. At the time of the Bank Merger, CrossFirst Bank banking centers became banking centers of Busey Bank. Throughout this document, we refer to First Busey Corporation, together with its consolidated subsidiaries, as “Busey,” the “Company,” “we,” “us,” or “our.”

Busey’s net income for the second quarter of 2025 was $47.4 million, or $0.52 per diluted common share, compared to a net loss of $30.0 million, or $0.44 per diluted common share, for the first quarter of 2025, and net income of $27.4 million, or $0.47 per diluted common share, for the second quarter of 2024. Annualized return on average assets and annualized return on average tangible common equity² were 1.00% and 11.24%, respectively, for the second quarter of 2025. The second quarter of 2025 represented the first full quarter in which the CrossFirst acquisition contributed to Busey’s financial results.

Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and nonrecurring strategic events, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). We also adjust for net securities gains and losses to align with industry and research analyst reporting. The objective of our presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance. Non-operating pre-tax adjustments for acquisition and restructuring expenses² in the second quarter of 2025 were $16.6 million, with an additional $4.0 million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new Current Expected Credit Losses (“CECL”) model. Further, net securities gains were $6.0 million, almost entirely related to unrealized gains on Busey’s approximately 3% equity ownership of a financial institution that was the target of an announced acquisition at a significant market premium. For more information and a reconciliation of these non-GAAP measures (which are identified with the End Note labeled as 2) in tabular form, see “Non-GAAP Financial Information” beginning on page 13.

Adjusted net income,² which excludes the impact of non-GAAP adjustments, was $57.4 million, or $0.63 per diluted common share, for the second quarter of 2025, compared to $39.9 million, or $0.57 per diluted common share, for the first quarter of 2025 and $30.5 million, or $0.53 per diluted common share, for the second quarter of 2024. Annualized adjusted return on average assets² and annualized adjusted return on average tangible common equity² were 1.21% and 13.61%, respectively, for the second quarter of 2025.

Pre-Provision Net Revenue²

Pre-provision net revenue² was $64.2 million for the second quarter of 2025, compared to $28.7 million for the first quarter of 2025 and $40.7 million for the second quarter of 2024. Pre-provision net revenue to average assets² was 1.35% for the second quarter of 2025, compared to 0.78% for the first quarter of 2025, and 1.35% for the second quarter of 2024.

Adjusted pre-provision net revenue² was $80.8 million for the second quarter of 2025, compared to $54.7 million for the first quarter of 2025 and $42.6 million for the second quarter of 2024. Adjusted pre-provision net revenue to average assets² was 1.70% for the second quarter of 2025, compared to 1.50% for the first quarter of 2025 and 1.42% for the second quarter of 2024.

Net Interest Income and Net Interest Margin²

Net interest income was $153.2 million in the second quarter of 2025, compared to $103.7 million in the first quarter of 2025 and $82.5 million in the second quarter of 2024.

Net interest margin² was 3.49% for the second quarter of 2025, compared to 3.16% for the first quarter of 2025 and 3.03% for the second quarter of 2024. Excluding purchase accounting accretion, adjusted net interest margin² was 3.33% for the second quarter of 2025, compared to 3.08% in the first quarter of 2025 and 3.00% in the second quarter of 2024.

Components of the 33 basis point increase in net interest margin² during the second quarter of 2025, which includes a full quarter of assets assumed in the CrossFirst acquisition, were as follows:

Increased loan portfolio and held for sale loan yields contributed +54 basis points
Increased purchase accounting accretion contributed +8 basis points
Securities repositioning executed in March contributed +4 basis points
Decreased borrowing expense contributed +4 basis points, of which +2 basis points were related to the redemption of subordinated debt in June
Increased non-maturity deposit funding costs contributed -25 basis points
Decreased cash and securities portfolio yield contributed -12 basis points

Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 2.8% over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet repositioning strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have continued to stabilize the funding base, and we had excess earning cash during the second quarter of 2025. Brokered deposit balances were reduced by $368.6 million during the second quarter of 2025 and at June 30, 2025, the Bank had $353.6 million, or 2.2% of total deposits, of remaining brokered funding. Total deposit cost of funds increased, as expected, from 1.91% during the first quarter of 2025 to 2.21% during the second quarter of 2025. Deposit cost of funds increased due to a full quarter of the higher mix of acquired CrossFirst indexed/managed rate customer products and brokered deposits. Busey will continue to deploy excess cash to pay down non-core and non-relationship high cost funding, which we anticipate will compress the asset base in the short term while helping to reduce the Bank’s overall funding cost. We expect the deposit beta will lessen during the year and is expected to normalize in a range between 45% and 50% of the upper limit of the federal funds target range.

Noninterest Income

	Three Months Ended								Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
NONINTEREST INCOME
Wealth management fees	$	16,777	$	17,364		$	15,917		$	34,141		$	31,466
Payment technology solutions		4,956		5,073			5,915			10,029			11,624
Treasury management services		4,981		3,017			2,145			7,998			4,046
Card services and ATM fees		4,880		3,709			3,430			8,589			6,390
Other service charges on deposit accounts		1,513		1,533			2,321			3,046			4,669
Mortgage revenue		776		329			478			1,105			1,224
Income on bank owned life insurance		1,745		1,446			1,442			3,191			2,861
Realized net gains (losses) on the sale of mortgage servicing rights		—		—			277			—			7,742
Net securities gains (losses)		5,997		(15,768	)		(353	)		(9,771	)		(6,728	)
Other noninterest income		3,238		4,520			2,131			7,758			5,322
Total noninterest income	$	44,863	$	21,223		$	33,703		$	66,086		$	68,616

Total noninterest income increased by 111.4% compared to the first quarter of 2025 and increased by 33.1% compared to the second quarter of 2024, primarily due to net securities gains and losses, as well as the benefit of a full quarter of income from the CrossFirst acquisition.

Excluding the impact of net securities gains and losses and the gains on the sale of mortgage servicing rights, adjusted noninterest income² increased by 5.1% to $38.9 million, or 20.2% of operating revenue², during the second quarter of 2025, compared to $37.0 million, or 26.3% of operating revenue², for the first quarter of 2025. Compared to the second quarter of 2024, adjusted noninterest income² increased by 15.1% from $33.8 million, or 29.0% of operating revenue.²

Our fee-based businesses continue to add revenue diversification. Wealth management fees, wealth management referral fees included in other noninterest income, and payment technology solutions contributed 56.4% of adjusted noninterest income² for the second quarter of 2025.

Noteworthy components of noninterest income are as follows:

Wealth management fees declined by 3.4% compared to the first quarter of 2025. The decrease in the second quarter of 2025 was primarily related to seasonal fees, with a decrease in farm management fees, partially offset by higher tax preparation fees. Compared to the second quarter of 2024 wealth management fees increased by 5.4%. Busey’s Wealth Management division ended the second quarter of 2025 with $14.10 billion in assets under care, compared to $13.68 billion at the end of the first quarter of 2025 and $13.02 billion at the end of the second quarter of 2024. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark³ over the last three and five years.
Payment technology solutions includes income from electronic payments, merchant processing, and lockbox. Revenue in this category declined by 2.3% compared the first quarter of 2025 and declined by 16.2% compared to the second quarter of 2024, primarily due to decreases in income from electronic payments.
Treasury management services consist primarily of business analysis charges and wire transfer fees on commercial accounts. Income from treasury management services increased by 65.1% compared to the first quarter of 2025 and increased by 132.2% compared to the second quarter of 2024 due to the addition of CrossFirst commercial services.
Card services and ATM fees, which include both commercial and consumer accounts, increased by 31.6% compared to the first quarter of 2025 and increased by 42.3% compared to the second quarter of 2024 primarily due to addition of CrossFirst corporate card services.
Other service charges on deposit accounts declined by 1.3% compared to the first quarter of 2025 and declined by 34.8% compared to the second quarter of 2024. Declines are largely related to lower non-sufficient fund charges.
Other noninterest income decreased by 28.4% compared to the first quarter of 2025, primarily due to declines in gains on commercial loan sales, loss on sales of other real estate owned and a related reduction in income from the sold property, and decreases in venture capital investments. Compared to the second quarter of 2024, other noninterest income increased by 51.9%, primarily due to increases in venture capital investments, commercial loan servicing income, and other loan fee income.

Operating Efficiency

	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
NONINTEREST EXPENSE
Salaries, wages, and employee benefits	$	78,360	$	67,563	$	43,478	$	145,923	$	85,568
Data processing		14,021		9,575		7,100		23,596		13,650
Net occupancy expense of premises		7,832		5,799		4,590		13,631		9,310
Furniture and equipment expenses		2,409		1,744		1,695		4,153		3,508
Professional fees		2,874		9,511		2,495		12,385		4,748
Amortization of intangible assets		4,592		3,083		2,629		7,675		5,038
Interchange expense		1,297		1,343		1,733		2,640		3,344
FDIC insurance		2,424		2,167		1,460		4,591		2,860
Other noninterest expense¹		14,024		11,245		10,726		25,269		19,327
Total noninterest expense¹	$	127,833	$	112,030	$	75,906	$	239,863	$	147,353

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within other noninterest expense or total noninterest expense.

Total noninterest expense increased by 14.1% compared to the first quarter of 2025 and increased by 68.4% compared to the second quarter of 2024. Growth in noninterest expense was primarily attributable to nonrecurring acquisition expenses related to the CrossFirst acquisition, added costs for operating expenses for two banks during the majority of the second quarter, until the banks were merged on June 20, 2025, and increased expense associated with the larger organization and branch network. Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million, and we expect 50% of the identified synergies to be realized in 2025 and 100% in 2026.

Adjusted noninterest expense,² which excludes acquisition and restructuring expenses and amortization of intangible assets, was $106.6 million in the second quarter of 2025, a 28.6% increase compared to $82.9 million in the first quarter of 2025 and a 50.1% increase compared to $71.1 million in the second quarter of 2024.

Noteworthy components of noninterest expense are as follows:

Salaries, wages, and employee benefits expenses increased by $10.8 million compared to the first quarter of 2025, with acquisition and restructuring expenses declining by $4.3 million. In connection with the CrossFirst acquisition in March and the addition of 16 banking centers, Busey’s workforce expanded, which resulted in only one month of associated expenses during the first quarter of 2025 in contrast to a full quarter of associated expenses reflected in the Company’s results for the second quarter of 2025. Compared to the second quarter of 2024, salaries, wages, and employee benefits expenses increased by $34.9 million, of which $10.4 million was attributable to increases in acquisition and restructuring expenses. Including associates added in connection with the CrossFirst acquisition, Busey has added 430 FTEs over the past year.
Data processing expense increased by $4.4 million compared to the first quarter of 2025 and by $6.9 million compared to the second quarter of 2024, of which $1.7 million and $3.6 million, respectively, was attributable to increases in acquisition and restructuring expenses. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
Professional fees declined by $6.6 million compared to the first quarter of 2025, which was primarily driven by a $7.0 million decrease in acquisition and restructuring expenses. Compared to the second quarter of 2024, professional fees increased by $0.4 million, primarily due to increased audit and accounting fees and legal fees, partially offset by $0.1 million declines in acquisition and restructuring expenses.
Amortization of intangible assets increased by $1.5 million compared to the first quarter of 2025, and by $2.0 million compared to the second quarter of 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets with amortization of $2.4 million and $3.1 million during the second quarter of 2025 and the first six months of 2025, respectively. Busey uses an accelerated amortization methodology.
Other noninterest expense increased by $2.8 million compared to the first quarter of 2025, and increased by $3.3 million compared to the second quarter of 2024. Items contributing to the increases included marketing, business development, supplies, and onboarding costs as well as increases in acquisition and restructuring expenses of $0.2 million compared to the first quarter of 2025 and $0.5 million compared to the second quarter of 2024.

Busey’s efficiency ratio² was 63.9% for the second quarter of 2025, compared to 77.1% for the first quarter of 2025 and 62.6% for the second quarter of 2024. Our adjusted efficiency² ratio was 55.3% for the second quarter of 2025, compared to 58.7% for the first quarter of 2025, and 60.9% for the second quarter of 2024.

Busey’s annualized ratio of adjusted noninterest expense to average assets was 2.24% for the second quarter of 2025, compared to 2.27% for the first quarter of 2025 and 2.36% for the second quarter of 2024. As our business grows, Busey remains focused on prudently managing our expense base and operating efficiency.

BALANCE SHEET STRENGTH

CONDENSED CONSOLIDATED BALANCE SHEETS *(unaudited)*

	As of
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024
ASSETS
Cash and cash equivalents	$	752,352		$	1,200,292		$	285,269
Debt securities available for sale		2,217,788			2,273,874			1,829,896
Debt securities held to maturity		802,965			815,402			851,261
Equity securities		16,171			10,828			9,618
Loans held for sale		10,497			7,270			11,286
Portfolio loans		13,808,619			13,868,357			7,998,912
Allowance for credit losses		(183,334	)		(195,210	)		(85,226	)
Restricted bank stock		77,112			53,518			6,884
Premises and equipment, net		181,394			182,003			121,647
Right of use assets		38,065			40,594			11,137
Goodwill and other intangible assets, net		488,181			496,118			370,580
Other assets		708,930			711,206			560,152
Total assets	$	18,918,740		$	19,464,252		$	11,971,416

LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing deposits	$	3,590,363		$	3,693,070		$	2,832,776
Interest-bearing checking, savings, and money market deposits		9,578,953			9,675,324			5,619,470
Time deposits		2,632,456			3,091,076			1,523,889
Total deposits		15,801,772			16,459,470			9,976,135
Securities sold under agreements to repurchase		158,030			137,340			140,283
Short-term borrowings		—			11,209			—
Long-term debt		189,726			313,535			227,245
Junior subordinated debt owed to unconsolidated trusts		77,187			77,117			74,693
Lease liabilities		39,235			41,111			11,469
Other liabilities		240,244			244,864			207,781
Total liabilities		16,506,194			17,284,646			10,637,606

Stockholders’ equity
Retained earnings		273,799			249,484			261,820
Accumulated other comprehensive income (loss)		(155,311	)		(172,810	)		(220,326	)
Other stockholders’ equity¹		2,294,058			2,102,932			1,292,316
Total stockholders’ equity		2,412,546			2,179,606			1,333,810
Total liabilities & stockholders’ equity	$	18,918,740		$	19,464,252		$	11,971,416

___________________________________________

Net balance of preferred stock ($0.001 par value), common stock ($0.001 par value), additional paid-in capital, and treasury stock.

AVERAGE BALANCES *(unaudited)*

	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
ASSETS
Cash and cash equivalents	$	868,164	$	861,021	$	346,381	$	864,613	$	470,287
Investment securities		3,083,284		2,782,435		2,737,313		2,933,690		2,822,228
Loans held for sale		6,899		3,443		9,353		5,181		7,093
Portfolio loans		13,840,190		9,838,337		8,010,636		11,850,318		7,804,976
Interest-earning assets		17,700,356		13,363,594		11,000,785		15,543,955		11,003,344
Total assets		19,068,086		14,831,298		12,089,692		16,961,396		12,056,950

LIABILITIES & STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits		3,542,617		3,036,127		2,816,293		3,290,770		2,762,439
Interest-bearing deposits		12,450,529		9,142,781		7,251,582		10,805,793		7,290,844
Total deposits		15,993,146		12,178,908		10,067,875		14,096,563		10,053,283
Federal funds purchased and securities sold under agreements to repurchase		141,978		144,838		144,370		143,400		161,514
Interest-bearing liabilities		12,985,015		9,627,841		7,725,832		11,315,702		7,778,744
Total liabilities		16,783,504		12,896,222		10,757,877		14,850,601		10,753,180
Stockholders’ equity – preferred		103,619		2,669		—		53,423		—
Stockholders’ equity – common		2,180,963		1,932,407		1,331,815		2,057,372		1,303,770
Tangible common equity¹		1,686,490		1,521,387		955,591		1,604,394		939,150

___________________________________________

See “Non-GAAP Financial Information” for reconciliation.

Busey’s financial strength is built on a long-term conservative operating approach. That focus has endured over time and will continue to guide us in the future.

Total assets were $18.92 billion as of June 30, 2025, compared to $19.46 billion as of March 31, 2025, and $11.97 billion as of June 30, 2024. Average interest-earning assets were $17.70 billion for the second quarter of 2025, compared to $13.36 billion for the first quarter of 2025, and $11.00 billion for the second quarter of 2024.

Portfolio Loans

We remain steadfast in our conservative approach to underwriting and our disciplined approach to pricing. Loan demand has been tempered with borrowers hesitant to invest because of lingering macroeconomic uncertainty. At the same time, our commercial real estate portfolio continues to season, resulting in payoffs as properties are completed, stabilized, and refinanced to permanent markets or sold. We expect continued pressure from paydowns within our commercial real estate portfolio through the remainder of 2025. Portfolio loans totaled $13.81 billion at June 30, 2025, compared to $13.87 billion at March 31, 2025, and $8.00 billion at June 30, 2024.

Average portfolio loans were $13.84 billion for the second quarter of 2025, compared to $9.84 billion for the first quarter of 2025 and $8.01 billion for the second quarter of 2024.

Asset Quality

Asset quality continues to be strong. Busey Bank maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment. Following the Bank Merger in June, we are operating as one bank, with a singular credit policy, concentration limits, and monitoring that will continue to align with Busey Bank’s pillars of credit quality.

ASSET QUALITY *(unaudited)*

	As of
(dollars in thousands)	June 30, 2025			March 31, 2025			June 30, 2024
Total assets	$	18,918,740		$	19,464,252		$	11,971,416
Portfolio loans		13,808,619			13,868,357			7,998,912
Loans 30 – 89 days past due		42,188			18,554			23,463
Non-performing loans:
Non-accrual loans		53,614			48,647			8,393
Loans 90+ days past due and still accruing		941			6,077			712
Non-performing loans		54,555			54,724			9,105
Other non-performing assets		3,596			4,757			90
Non-performing assets		58,151			59,481			9,195
Substandard (excludes 90+ days past due)		117,580			131,078			86,579
Classified assets	$	175,731		$	190,559		$	95,774

Allowance for credit losses	$	183,334		$	195,210		$	85,226

RATIOS
Non-performing loans to portfolio loans		0.40	%		0.39	%		0.11	%
Non-performing assets to total assets		0.31	%		0.31	%		0.08	%
Non-performing assets to portfolio loans and other non-performing assets		0.42	%		0.43	%		0.11	%
Allowance for credit losses to portfolio loans		1.33	%		1.41	%		1.07	%
Coverage ratio of the allowance for credit losses to non-performing loans	3.36 x			3.57 x			9.36 x
Classified assets to Bank Tier 1 capital¹and reserves		7.70	%		8.40	%		6.40	%

___________________________________________

Capital amounts for the second quarter of 2025 are not yet finalized and are subject to change.

Loans 30-89 days past due increased by $23.6 million compared to March 31, 2025, and increased by $18.7 million compared to June 30, 2024. Increases are primarily due to two commercial credits, one of which—representing approximately $12.5 million—was brought current after the end of the second quarter.

Non-performing loans decreased by $0.2 million compared to March 31, 2025, and increased by $45.5 million compared to June 30, 2024, with the increase compared to the prior year due to loans purchased with credit deterioration (“PCD” loans) assumed in the CrossFirst acquisition. Non-performing loans were 0.40% of portfolio loans as of June 30, 2025, a 1 basis point increase from March 31, 2025, and a 29 basis point increase from June 30, 2024.

Non-performing assets decreased by $1.3 million compared to March 31, 2025, and increased by $49.0 million compared to June 30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition. Non-performing assets represented 0.31% of total assets as of both June 30, 2025, and March 31, 2025, which is a 23 basis point increase from June 30, 2024.

Classified assets decreased by $14.8 million compared to March 31, 2025, and increased by $80.0 million compared to June 30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition.

The allowance for credit losses was $183.3 million as of June 30, 2025, representing 1.33% of total portfolio loans outstanding, and providing coverage of 3.36 times our non-performing loans balance.

NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) *(unaudited)*

	Three Months Ended							Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024			June 30, 2025		June 30, 2024
Net charge-offs (recoveries)	$	12,882	$	31,429	$	9,856		$	44,311	$	15,072

Provision for loan losses¹	$	1,005	$	42,452	$	2,277		$	43,457	$	7,315
Provision for unfunded commitments²		4,695		3,141		(369	)		7,836		(1,047	)
Provision for credit losses³	$	5,700	$	45,593	$	1,908		$	51,293	$	6,268

___________________________________________

Amounts reported as provision for loan losses for periods ending prior to June 30, 2025, were previously reported as provision for credit losses. March 31, 2025, included $42.4 million to establish an initial allowance for credit losses for loans purchased without credit deterioration (“non-PCD” loans) following the close of the CrossFirst acquisition.
June 30, 2025, included an additional $4.0 million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new CECL model. March 31, 2025, included $3.1 million to establish an initial allowance for unfunded commitments following the close of the CrossFirst acquisition.
Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses.

Net charge-offs decreased by $18.5 million when compared to the first quarter of 2025, and increased by $3.0 million when compared with the second quarter of 2024. Net charge-offs during the second quarter of 2025 primarily related to one legacy-Busey medical office credit. Net charge-offs during the first quarter of 2025 included $29.6 million related to PCD loans acquired from CrossFirst Bank, which were fully reserved at acquisition and did not require recording additional provision expense.

The $1.0 million provision for loan losses recorded in the second quarter of 2025 included a release of the PCD provision of $11.8 million due to PCD loan payoffs/paydowns and non-PCD provision expense of $12.8 million to support charge-offs, to adjust for the loan portfolio mix, and as a response to economic factors.

Deposits

Total deposits were $15.80 billion at June 30, 2025, compared to $16.46 billion at March 31, 2025, and $9.98 billion at June 30, 2024. Average deposits were $15.99 billion for the second quarter of 2025, compared to $12.18 billion for the first quarter of 2025 and $10.07 billion for the second quarter of 2024. The deliberate run-off of higher cost brokered deposits and listing service CD reductions accounted for $386.8 million of the quarter over quarter decrease as well as seasonal tax payments that put additional pressure on funding during the quarter.

Core deposits² accounted for 92.5% of total deposits as of June 30, 2025. The quality of our core deposit franchise is a critical value driver of our institution. We estimated that 33% of our deposits were uninsured and uncollateralized⁴ as of June 30, 2025, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the second quarter of 2025 had a weighted average term of 8.0 months at a rate of 3.74%, which was 80 basis points below our average marginal wholesale equivalent-term funding cost during the quarter.

Borrowings

On June 1, 2025, Busey redeemed the entire $125.0 million outstanding principal amount of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Subordinated Notes”). The aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest thereon up to, but excluding, June 1, 2025, was $128.3 million.

Liquidity

As of June 30, 2025, Busey’s available sources of on- and off-balance sheet liquidity⁵ totaled $7.95 billion. Furthermore, Busey’s balance sheet liquidity profile continues to be aided by the cash flows expected from Busey’s relatively short-duration securities portfolio. Those cash flows were approximately $123.1 million in the second quarter of 2025. Cash flows from maturing securities within our portfolio are expected to be approximately $181.0 million for the remainder of 2025, with a current book yield of 2.52%, and approximately $289.7 million for 2026, with a current book yield of 2.58%.

Capital Strength

The strength of our balance sheet is also reflected in our capital foundation. Although still impacted by the strategic deployment of capital for the CrossFirst acquisition, as well as by Busey’s active share repurchase program, our capital ratios remain strong, and as of June 30, 2025, our estimated regulatory capital ratios⁶ continued to provide a buffer of more than $870 million above levels required to be designated well-capitalized. Busey’s Common Equity Tier 1 ratio is estimated⁶ to be 12.22% at June 30, 2025, compared to 12.00% at March 31, 2025, and 13.20% at June 30, 2024. Our Total Capital to Risk Weighted Assets ratio is estimated⁶ to be 15.75% at June 30, 2025, compared to 14.88% at March 31, 2025, and 17.50% at June 30, 2024.

Busey’s tangible common equity² was $1.71 billion at June 30, 2025, compared to $1.68 billion at March 31, 2025, and $963.2 million at June 30, 2024. Tangible common equity² represented 9.27% of tangible assets at June 30, 2025, compared to 8.83% at March 31, 2025, and 8.30% at June 30, 2024.

Busey’s tangible book value per common share² was $19.18 at June 30, 2025, compared to $18.62 at March 31, 2025, and $16.97 at June 30, 2024, reflecting a 13.0% year-over-year increase.

Dividends

Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. During the second quarter of 2025, Busey paid a dividend of $0.25 per share on its common stock. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980. Additionally, during the second quarter of 2025, Busey paid a dividend of $20.00 per share on its Series A Non-cumulative Perpetual Preferred Stock, which was issued in connection with the CrossFirst acquisition.

Series B Preferred Stock Issuance

On May 20, 2025, Busey issued an aggregate of 8,600,000 depositary shares (the “Depositary Shares”), each representing a 1/40th interest in a share of Busey’s 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock, $0.001 par value (the “Series B Preferred Stock”), with a liquidation preference of $1,000 per share of Series B Preferred Stock (equivalent to $25 per Depositary Share). Additional information about the Depositary Shares and Series B Preferred Stock issuance can be found in Busey’s 8-K filed with the SEC on May 20, 2025, and the related exhibits thereto.

Share Repurchases

During the second quarter of 2025, Busey’s board of directors authorized the purchase of up to 2,000,000 additional shares of the Company’s common stock under Busey’s stock repurchase plan. Busey purchased 1,012,000 shares of its common stock under the plan during the second quarter of 2025 at a weighted average price of $21.40 per share for a total of $21.7 million. As of June 30, 2025, Busey had 2,687,275 shares remaining available for repurchase under the plan.

SECOND QUARTER EARNINGS INVESTOR PRESENTATION

For additional information on Busey’s financial condition and operating results, please refer to our Q2 2025 Earnings Investor Presentation furnished via Form 8‑K on July 22, 2025, in connection with this earnings release.

CORPORATE PROFILE

As of June 30, 2025, First Busey Corporation (Nasdaq: BUSE) was a $18.92 billion financial holding company headquartered in Leawood, Kansas.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation headquartered in Champaign, Illinois, had total assets of $18.87 billion as of June 30, 2025. Busey Bank currently has 78 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, four in the Dallas-Fort Worth-Arlington Metropolitan Statistical Area, three in the Kansas City Metropolitan Statistical Area, three in Southwest Florida, one in Indianapolis, two in Oklahoma City, one in Tulsa, one in Wichita, one in Denver, one in Colorado Springs, one in Phoenix, one in Tucson, and one in New Mexico. More information about Busey Bank can be found at busey.com.

Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $14.10 billion as of June 30, 2025. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

For the fourth consecutive year, Busey was named among Forbes’ 2025’s America’s Best Banks. In 2025, Forbes also recognized Busey as a Best-in-State Bank, based on rankings of customer service, quality of financial advice, fee structures, ease of digital services, accessing help at branch locations and the degree of trust inspired. Busey was also named among the 2024 Best Banks to Work For by American Banker and the 2024 Best Places to Work in Money Management by Pensions and Investments. We are honored to be consistently recognized as an outstanding financial services organization with an engaged culture of integrity and commitment to community development.

NON-GAAP FINANCIAL INFORMATION

This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring items and provide additional perspective on Busey’s performance over time.

The following tables present reconciliations between these non-GAAP measures and what management believes to be the most directly comparable GAAP financial measures.

These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Pre-Provision Net Revenue and Related Measures

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses (GAAP)			(5,997	)		15,768			353			9,771			6,728
Total noninterest expense (GAAP)¹			(127,833	)		(112,030	)		(75,906	)		(239,863	)		(147,353	)
Pre-provision net revenue (Non-GAAP)	[a]		64,216			28,692			40,682			92,908			86,377
Acquisition and restructuring expenses, excluding initial provision expenses			16,600			26,026			2,212			42,626			2,620
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted pre-provision net revenue (Non-GAAP)	[b]	$	80,816		$	54,718		$	42,617		$	135,534		$	81,255

Average total assets	[c]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950

Pre-provision net revenue to average total assets (Non-GAAP)²	[a÷c]		1.35	%		0.78	%		1.35	%		1.10	%		1.44	%
Adjusted pre-provision net revenue to average total assets (Non-GAAP)²	[b÷c]		1.70	%		1.50	%		1.42	%		1.61	%		1.36	%

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.
Annualized measure.

Adjusted Net Income, Average Tangible Common Equity, and Related Ratios

		Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net income (loss) (GAAP)	[a]	$	47,404		$	(29,990	)	$	27,357		$	17,414		$	53,582
Day 2 provision for credit losses¹			—			45,572			—			45,572			—
Adjustment of initial provision for unfunded commitments due to adoption of new model¹			4,030			—			—			4,030			—
Other acquisition expenses			16,600			26,026			2,212			42,626			2,497
Restructuring expenses			—			—			—			—			123
Net securities (gains) losses			(5,997	)		15,768			353			9,771			6,728
Realized net (gains) losses on the sale of mortgage servicing rights			—			—			(277	)		—			(7,742	)
Related tax (benefit) expense²			(4,971	)		(22,069	)		(572	)		(27,040	)		(402	)
Non-recurring deferred tax adjustment³			328			4,591			1,446			4,919			1,446
Adjusted net income (Non-GAAP)⁴	[b]		57,394			39,898			30,519			97,292			56,232
Preferred dividends	[c]		155			—			—			155			—
Adjusted net income available to common stockholders (Non-GAAP)	[d]	$	57,239		$	39,898		$	30,519		$	97,137		$	56,232

Weighted average number of common shares outstanding, diluted (GAAP)	[e]		90,883,711			68,517,647			57,853,231			80,251,577			57,129,865
Diluted earnings (loss) per common share (GAAP)	[(a-c)÷e]	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94

Weighted average number of common shares outstanding, diluted (Non-GAAP)⁵	[f]		90,883,711			69,502,717			57,853,231			80,251,577			57,129,865
Adjusted diluted earnings per common share (Non-GAAP)^5,6	[d÷f]	$	0.63		$	0.57		$	0.53		$	1.21		$	0.98

Average total assets	[g]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Return on average assets (Non-GAAP)⁶	[a÷g]		1.00	%	(0.82)%				0.91	%		0.21	%		0.89	%
Adjusted return on average assets (Non-GAAP)⁴^,⁶	[b÷g]		1.21	%		1.09	%		1.02	%		1.16	%		0.94	%

Average common equity		$	2,180,963		$	1,932,407		$	1,331,815		$	2,057,372		$	1,303,770
Average goodwill and other intangible assets, net			(494,473	)		(411,020	)		(376,224	)		(452,978	)		(364,620	)
Average tangible common equity (Non-GAAP)	[h]	$	1,686,490		$	1,521,387		$	955,591		$	1,604,394		$	939,150

Return on average tangible common equity (Non-GAAP)⁶	[(a-c)÷h]		11.24	%	(7.99)%				11.51	%		2.17	%		11.47	%
Adjusted return on average tangible common equity (Non-GAAP)⁴^,⁶	[d÷h]		13.61	%		10.64	%		12.85	%		12.21	%		12.04	%

___________________________________________

The Day 2 provision represents the initial provision for credit losses recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and unfunded commitments and is reflected within the provision for credit losses line on the Statement of Income.
Tax benefits were calculated for the year-to-date periods using tax rates of 26.51% and 25.03% for the six months ended June 30, 2025 and 2024, respectively. Tax benefits for the quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.
A deferred valuation tax adjustment in 2025 was recorded in connection with the CrossFirst acquisition and the expansion of Busey’s footprint into new states. Additionally, 2025 includes a write-off of deferred tax assets related to non-deductible acquisition-related expenses. A deferred tax valuation adjustment in 2024 resulted from a change to Busey’s Illinois apportionment rate due to recently enacted regulations. Deferred tax adjustments are reflected within the income taxes line on the Statement of Income.
Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and one-time deferred tax valuation adjustments. In 2024, these adjusting items were presented as further adjustments to adjusted net income.
Dilution includes shares that would have been dilutive if there had been net income during the period.
Annualized measure.

Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[a]		153,974			104,268			82,934			258,242			159,237
Purchase accounting accretion related to business combinations			(7,119	)		(2,728	)		(812	)		(9,847	)		(1,016	)
Adjusted net interest income (Non-GAAP)	[b]	$	146,855		$	101,540		$	82,122		$	248,395		$	158,221

Average interest-earning assets (Non-GAAP)	[c]	$	17,700,356		$	13,363,594		$	11,000,785		$	15,543,955		$	11,003,344

Net interest margin (Non-GAAP)²	[a÷c]		3.49	%		3.16	%		3.03	%		3.35	%		2.91	%
Adjusted net interest margin (Non-GAAP)²	[b÷c]		3.33	%		3.08	%		3.00	%		3.22	%		2.89	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Annualized measure.

Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Efficiency Ratios, and Adjusted Noninterest Expense to Average Assets

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)	[a]	$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[b]		153,974			104,268			82,934			258,242			159,237

Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses			(5,997	)		15,768			353			9,771			6,728
Noninterest income excluding net securities gains and losses (Non-GAAP)	[c]		38,866			36,991			34,056			75,857			75,344
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted noninterest income (Non-GAAP)	[d]	$	38,866		$	36,991		$	33,779		$	75,857		$	67,602

Tax-equivalent revenue (Non-GAAP)	[e = b+c]	$	192,840		$	141,259		$	116,990		$	334,099		$	234,581
Adjusted tax-equivalent revenue (Non-GAAP)	[f = b+d]		192,840			141,259			116,713			334,099			226,839
Operating revenue (Non-GAAP)	[g = a+d]		192,049			140,722			116,311			332,771			225,988

Adjusted noninterest income to operating revenue (Non-GAAP)	[d÷g]		20.24	%		26.29	%		29.04	%		22.80	%		29.91	%

Total noninterest expense (GAAP)²		$	127,833		$	112,030		$	75,906		$	239,863		$	147,353
Amortization of intangible assets			(4,592	)		(3,083	)		(2,629	)		(7,675	)		(5,038	)
Noninterest expense excluding amortization of intangible assets (Non-GAAP)²	[h]		123,241			108,947			73,277			232,188			142,315
Acquisition and restructuring expenses, excluding initial provision expenses			(16,600	)		(26,026	)		(2,212	)		(42,626	)		(2,620	)
Adjusted noninterest expense (Non-GAAP)²	[i]	$	106,641		$	82,921		$	71,065		$	189,562		$	139,695

Efficiency ratio (Non-GAAP)²	[h÷e]		63.91	%		77.13	%		62.64	%		69.50	%		60.67	%
Adjusted efficiency ratio (Non-GAAP)²	[i÷f]		55.30	%		58.70	%		60.89	%		56.74	%		61.58	%

Average total assets	[j]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Adjusted noninterest expense to average assets (Non-GAAP)²^,³	[i÷j]		2.24	%		2.27	%		2.36	%		2.25	%		2.33	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense. This change affects all measures and ratios derived from total noninterest expense.
Annualized measure.

Tangible Assets, Tangible Common Equity, and Related Measures and Ratio

		As of
*(dollars in thousands, except per share amounts)*		June 30, 2025			March 31, 2025			June 30, 2024
Total assets (GAAP)		$	18,918,740		$	19,464,252		$	11,971,416
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible assets (Non-GAAP)¹	[a]	$	18,430,559		$	18,968,134		$	11,600,836

Total stockholders’ equity (GAAP)		$	2,412,546		$	2,179,606		$	1,333,810
Preferred stock and additional paid in capital on preferred stock			(215,197	)		(7,750	)		—
Common equity	[b]		2,197,349			2,171,856			1,333,810
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible common equity (Non-GAAP)¹	[c]	$	1,709,168		$	1,675,738		$	963,230

Tangible common equity to tangible assets (Non-GAAP)¹	[c÷a]		9.27	%		8.83	%		8.30	%

Ending number of common shares outstanding (GAAP)	[d]		89,104,678			90,008,178			56,746,937
Book value per common share (Non-GAAP)	[b÷d]	$	24.66		$	24.13		$	23.50
Tangible book value per common share (Non-GAAP)	[c÷d]	$	19.18		$	18.62		$	16.97

___________________________________________

Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity for all periods presented to exclude any tax adjustment.

Core Deposits and Related Ratio

		As of
*(dollars in thousands)*		June 30, 2025			March 31, 2025			June 30, 2024
Total deposits (GAAP)	[a]	$	15,801,772		$	16,459,470		$	9,976,135
Brokered deposits, excluding brokered time deposits of $250,000 or more			(353,614	)		(722,224	)		(43,089	)
Time deposits of $250,000 or more			(827,762	)		(867,035	)		(314,461	)
Core deposits (Non-GAAP)	[b]	$	14,620,396		$	14,870,211		$	9,618,585

Core deposits to total deposits (Non-GAAP)	[b÷a]		92.52	%		90.34	%		96.42	%

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures, the threat or implementation of tariffs, trade wars, and changes to immigration policy); (2) changes in, and the interpretation and prioritization of, local, state, and federal laws, regulations, and governmental policies (including those concerning Busey’s general business); (3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (4) unexpected results of acquisitions, including the acquisition of CrossFirst, which may include the failure to realize the anticipated benefits of the acquisitions and the possibility that the transaction and integration costs may be greater than anticipated; (5) the imposition of tariffs or other governmental policies impacting the value of products produced by Busey’s commercial borrowers; (6) new or revised accounting policies and practices as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission, or the Public Company Accounting Oversight Board; (7) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (8) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (9) technological changes implemented by us and other parties, including our third-party vendors, which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (10) the loss of key executives or associates, talent shortages, and employee turnover; (11) unexpected outcomes and costs of existing or new litigation, investigations, or other legal proceedings, inquiries, and regulatory actions involving Busey (including with respect to Busey’s Illinois franchise taxes); (12) fluctuations in the value of securities held in Busey’s securities portfolio, including as a result of changes in interest rates; (13) credit risk and risk from concentrations (by type of borrower, geographic area, collateral, and industry), within Busey’s loan portfolio and large loans to certain borrowers (including commercial real estate loans); (14) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversify their exposure; (15) the level of non-performing assets on Busey’s balance sheets; (16) interruptions involving information technology and communications systems or third-party servicers; (17) breaches or failures of information security controls or cybersecurity-related incidents; (18) the economic impact on Busey and its customers of climate change, natural disasters, and exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts; (19) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact Busey’s cost of funds; (20) the ability to maintain an adequate level of allowance for credit losses on loans; (21) the effectiveness of Busey’s risk management framework; and (22) the ability of Busey to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

END NOTES

1	Annualized measure.
2	Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see “Non-GAAP Financial Information.”
3	The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.
4	Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250,000 Federal Deposit Insurance Corporation insurance limit, less intercompany accounts, fully collateralized accounts (including preferred deposits), and pass-through accounts where clients have deposit insurance at the correspondent financial institution.
5	On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
6	Capital amounts and ratios for the second quarter of 2025 are not yet finalized and are subject to change.

INVESTOR CONTACT: Scott A. Phillips, Interim Chief Financial Officer | 239-689-7167

The MIL Network –

July 23, 2025

MIL-OSI: Renasant Corporation Announces Earnings for the Second Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

TUPELO, Miss., July 22, 2025 (GLOBE NEWSWIRE) — Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the second quarter of 2025.

(Dollars in thousands, except earnings per share)	Three Months Ended								Six Months Ended
	Jun 30, 2025			Mar 31, 2025			Jun 30, 2024		Jun 30, 2025			Jun 30, 2024
Net income and earnings per share:
Net income	$	1,018		$	41,518		$	38,846	$	42,536		$	78,255
Merger and conversion related expenses (net of tax)		(15,935	)		(593	)		—		(16,527	)		—
Day 1 acquisition provision (net of tax)		(50,026	)		—			—		(50,026	)		—
Basic EPS		0.01			0.65			0.69		0.54			1.39
Diluted EPS		0.01			0.65			0.69		0.53			1.38
Adjusted diluted EPS (Non-GAAP)⁽¹⁾		0.69			0.66			0.69		1.36			1.33
Impact to diluted EPS from merger and conversion related expenses (net of tax)		(0.17	)		(0.01	)		—		(0.21	)		—
Impact to diluted EPS from Day 1 acquisition provision (net of tax)		(0.53	)		—			—		(0.63	)		—

“The results for the quarter reflect significant progress on the merger and integration of The First Bancshares, Inc.,” remarked Kevin D. Chapman, Chief Executive Officer of the Company. “Our employees continue to work diligently on bringing two strong companies together to better serve our customers.”

Quarterly Highlights

Merger with The First Bancshares, Inc.

On April 1, 2025, the Company completed its merger with The First Bancshares, Inc. (“The First”). As of the effective date of the merger, The First operated 116 locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida and, net of purchase accounting adjustments, had $7.9 billion in assets, $5.2 billion in loans, and $6.4 billion in deposits

Earnings

Net income for the second quarter of 2025 was $1.0 million, which includes merger and conversion expenses of $20.5 million and Day 1 acquisition provision for credit losses of $66.6 million; diluted EPS and adjusted diluted EPS (non-GAAP)⁽¹⁾ were $0.01 and $0.69, respectively
Net interest income (fully tax equivalent) for the second quarter of 2025 was $222.7 million, up $85.3 million linked quarter, primarily due to the merger with The First
For the second quarter of 2025, net interest margin was 3.85%, up 40 basis points linked quarter. Adjusted net interest margin (non-GAAP)⁽¹⁾ was 3.58%, up 16 basis points linked quarter
Cost of total deposits was 2.12% for the second quarter of 2025, down 10 basis points linked quarter
Noninterest income increased $11.9 million linked quarter, primarily due to the merger with The First
Mortgage banking income increased $3.1 million linked quarter. Gain on sale of mortgage servicing rights (“MSRs”) was $1.5 million. The mortgage division generated $679.6 million in interest rate lock volume in the second quarter of 2025, up $47.5 million linked quarter. Gain on sale margin was 1.87% for the second quarter of 2025, up 45 basis points linked quarter
Noninterest expense increased $69.3 million linked quarter, primarily due to the merger with The First. Merger and conversion expenses and core deposit intangible amortization increased $19.7 million and $7.8 million, respectively, linked quarter

Balance Sheet

The combined company generated net organic loan growth of $311.6 million for the quarter, or 6.9% annualized
Securities increased $1.4 billion linked quarter, which includes $1.5 billion of securities acquired from The First. In the second quarter of 2025, the Company sold a portion of the acquired securities for proceeds of $686.5 million, which were reinvested in higher yielding assets
The combined company generated net organic deposit growth of $361.3 million for the quarter, or 6.8% annualized. Noninterest bearing deposits increased $1.8 billion linked quarter, primarily due to the merger with The First, and represented 24.8% of total deposits at June 30, 2025

Capital and Stock Repurchase Program

Book value per share and tangible book value per share (non-GAAP)⁽¹⁾ decreased 7.1% and 14.7%, respectively, linked quarter, due to the merger with The First
The Company has a $100.0 million stock repurchase program in effect through October 2025 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. There was no buyback activity during the second quarter of 2025

Credit Quality

The Company recorded a provision for credit losses of $81.3 million for the second quarter of 2025, which includes a $66.6 million Day 1 acquisition provision for credit losses and unfunded commitments
The ratio of the allowance for credit losses on loans to total loans was 1.57% at June 30, 2025, up one basis point linked quarter; net loan charge-offs for the second quarter of 2025 were $12.1 million
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 204.97% at June 30, 2025, compared to 206.55% at March 31, 2025
Nonperforming loans to total loans remained at 0.76% at June 30, 2025, and criticized loans (which include classified and Special Mention loans) to total loans increased to 2.66% at June 30, 2025, compared to 2.45% at March 31, 2025, primarily due to the merger with The First

_{⁽¹⁾ This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.}

Income Statement

(Dollars in thousands, except per share data)	Three Months Ended													Six Months Ended
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Jun 30, 2025		Jun 30, 2024
Interest income
Loans held for investment	$	301,794	$	196,566	$	199,240		$	202,655		$	198,397		$	498,360	$	390,787
Loans held for sale		4,639		3,008		3,564			4,212			3,530			7,647		5,838
Securities		28,408		12,117		10,510			10,304			10,410			40,525		21,110
Other		9,057		8,639		12,030			11,872			7,874			17,696		15,655
Total interest income		343,898		220,330		225,344			229,043			220,211			564,228		433,390
Interest expense
Deposits		111,921		79,386		85,571			90,787			87,621			191,307		170,234
Borrowings		13,118		6,747		6,891			7,258			7,564			19,865		14,840
Total interest expense		125,039		86,133		92,462			98,045			95,185			211,172		185,074
Net interest income		218,859		134,197		132,882			130,998			125,026			353,056		248,316
Provision for credit losses
Provision for loan losses		75,400		2,050		3,100			1,210			4,300			77,450		6,938
Provision for (Recovery of) unfunded commitments		5,922		2,700		(500	)		(275	)		(1,000	)		8,622		(1,200	)
Total provision for credit losses		81,322		4,750		2,600			935			3,300			86,072		5,738
Net interest income after provision for credit losses		137,537		129,447		130,282			130,063			121,726			266,984		242,578
Noninterest income		48,334		36,395		34,218			89,299			38,762			84,729		80,143
Noninterest expense		183,204		113,876		114,747			121,983			111,976			297,080		224,888
Income before income taxes		2,667		51,966		49,753			97,379			48,512			54,633		97,833
Income taxes		1,649		10,448		5,006			24,924			9,666			12,097		19,578
Net income	$	1,018	$	41,518	$	44,747		$	72,455		$	38,846		$	42,536	$	78,255

Adjusted net income (non-GAAP)⁽¹⁾	$	65,877	$	42,111	$	46,458		$	42,960		$	38,846		$	107,987	$	75,421
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)⁽¹⁾	$	103,001	$	57,507	$	54,177		$	56,238		$	51,812		$	160,508	$	100,043

Basic earnings per share	$	0.01	$	0.65	$	0.70		$	1.18		$	0.69		$	0.54	$	1.39
Diluted earnings per share		0.01		0.65		0.70			1.18			0.69			0.53		1.38
Adjusted diluted earnings per share (non-GAAP)⁽¹⁾		0.69		0.66		0.73			0.70			0.69			1.36		1.33
Average basic shares outstanding		94,580,927		63,666,419		63,565,437			61,217,094			56,342,909			79,209,073		56,275,628
Average diluted shares outstanding		95,136,160		64,028,025		64,056,303			61,632,448			56,684,626			79,671,775		56,607,947
Cash dividends per common share	$	0.22	$	0.22	$	0.22		$	0.22		$	0.22		$	0.44	$	0.44

_{⁽¹⁾ This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.}

Performance Ratios

	Three Months Ended										Six Months Ended
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
Return on average assets	0.02	%	0.94	%	0.99	%	1.63	%	0.90	%	0.39	%	0.91	%
Adjusted return on average assets (non-GAAP)⁽¹⁾	1.01		0.95		1.03		0.97		0.90		0.98		0.88
Return on average tangible assets (non-GAAP)⁽¹⁾	0.13		1.01		1.07		1.75		0.98		0.48		0.99
Adjusted return on average tangible assets (non-GAAP)⁽¹⁾	1.18		1.02		1.11		1.05		0.98		1.12		0.96
Return on average equity	0.11		6.25		6.70		11.29		6.68		2.66		6.77
Adjusted return on average equity (non-GAAP)⁽¹⁾	7.06		6.34		6.96		6.69		6.68		6.76		6.52
Return on average tangible equity (non-GAAP)⁽¹⁾	1.43		10.16		10.97		18.83		12.04		5.24		12.25
Adjusted return on average tangible equity (non-GAAP)⁽¹⁾	13.50		10.30		11.38		11.26		12.04		12.10		11.81
Efficiency ratio (fully taxable equivalent)	67.59		65.51		67.61		54.73		67.31		66.78		67.41
Adjusted efficiency ratio (non-GAAP)⁽¹⁾	57.07		64.43		65.82		64.62		66.60		59.95		67.41
Dividend payout ratio	2200.00		33.85		31.43		18.64		31.88		81.48		31.65

Capital and Balance Sheet Ratios

	As of
	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024
Shares outstanding		95,019,311			63,739,467			63,565,690			63,564,028			56,367,924
Market value per share	$	35.93		$	33.93		$	35.75		$	32.50		$	30.54
Book value per share		39.77			42.79			42.13			41.82			41.77
Tangible book value per share (non-GAAP)⁽¹⁾		23.10			27.07			26.36			26.02			23.89
Shareholders’ equity to assets		14.19	%		14.93	%		14.85	%		14.80	%		13.45	%
Tangible common equity ratio (non-GAAP)⁽¹⁾		8.77			9.99			9.84			9.76			8.16
Leverage ratio⁽²⁾		9.36			11.39			11.34			11.32			9.81
Common equity tier 1 capital ratio⁽²⁾		11.09			12.59			12.73			12.88			10.75
Tier 1 risk-based capital ratio⁽²⁾		11.09			13.35			13.50			13.67			11.53
Total risk-based capital ratio⁽²⁾		14.99			16.89			17.08			17.32			15.15

_{⁽¹⁾ This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.}

_{⁽²⁾ Preliminary}

Noninterest Income and Noninterest Expense

(Dollars in thousands)	Three Months Ended										Six Months Ended
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
Noninterest income
Service charges on deposit accounts	$	13,618	$	10,364	$	10,549	$	10,438	$	10,286	$	23,982	$	20,792
Fees and commissions		6,650		3,787		4,181		4,116		3,944		10,437		7,893
Insurance commissions		—		—		—		—		2,758		—		5,474
Wealth management revenue		7,345		7,067		6,371		5,835		5,684		14,412		11,353
Mortgage banking income		11,263		8,147		6,861		8,447		9,698		19,410		21,068
Gain on sale of insurance agency		—		—		—		53,349		—		—		—
Gain on extinguishment of debt		—		—		—		—		—		—		56
BOLI income		3,383		2,929		3,317		2,858		2,701		6,312		5,392
Other		6,075		4,101		2,939		4,256		3,691		10,176		8,115
Total noninterest income	$	48,334	$	36,395	$	34,218	$	89,299	$	38,762	$	84,729	$	80,143
Noninterest expense
Salaries and employee benefits	$	99,542	$	71,957	$	70,260	$	71,307	$	70,731	$	171,499	$	142,201
Data processing		5,438		4,089		4,145		4,133		3,945		9,527		7,752
Net occupancy and equipment		17,359		11,754		11,312		11,415		11,844		29,113		23,233
Other real estate owned		157		685		590		56		105		842		212
Professional fees		4,223		2,884		2,686		3,189		3,195		7,107		6,543
Advertising and public relations		4,490		4,297		3,840		3,677		3,807		8,787		8,693
Intangible amortization		8,884		1,080		1,133		1,160		1,186		9,964		2,398
Communications		3,184		2,033		2,067		2,176		2,112		5,217		4,136
Merger and conversion related expenses		20,479		791		2,076		11,273		—		21,270		—
Other		19,448		14,306		16,638		13,597		15,051		33,754		29,720
Total noninterest expense	$	183,204	$	113,876	$	114,747	$	121,983	$	111,976	$	297,080	$	224,888

Mortgage Banking Income

(Dollars in thousands)	Three Months Ended										Six Months Ended
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Jun 30, 2025		Jun 30, 2024
Gain on sales of loans, net	$	5,316	$	4,500	$	2,379	$	4,499	$	5,199	$	9,816	$	9,734
Fees, net		3,740		2,317		2,850		2,646		2,866		6,057		4,720
Mortgage servicing income, net		2,207		1,330		1,632		1,302		1,633		3,537		6,614
Total mortgage banking income	$	11,263	$	8,147	$	6,861	$	8,447	$	9,698	$	19,410	$	21,068

Balance Sheet

(Dollars in thousands)	As of
	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024
Assets
Cash and cash equivalents	$	1,378,612		$	1,091,339		$	1,092,032		$	1,275,620		$	851,906
Securities held to maturity, at amortized cost		1,076,817			1,101,901			1,126,112			1,150,531			1,174,663
Securities available for sale, at fair value		2,471,487			1,002,056			831,013			764,844			749,685
Loans held for sale, at fair value		356,791			226,003			246,171			291,735			266,406
Loans held for investment		18,563,447			13,055,593			12,885,020			12,627,648			12,604,755
Allowance for credit losses on loans		(290,770	)		(203,931	)		(201,756	)		(200,378	)		(199,871	)
Loans, net		18,272,677			12,851,662			12,683,264			12,427,270			12,404,884
Premises and equipment, net		465,100			279,011			279,796			280,550			280,966
Other real estate owned		11,750			8,654			8,673			9,136			7,366
Goodwill		1,419,782			988,898			988,898			988,898			991,665
Other intangibles		163,751			13,025			14,105			15,238			16,397
Bank-owned life insurance		486,613			337,502			391,810			389,138			387,791
Mortgage servicing rights		64,539			72,902			72,991			71,990			72,092
Other assets		457,056			298,428			300,003			293,890			306,570
Total assets	$	26,624,975		$	18,271,381		$	18,034,868		$	17,958,840		$	17,510,391

Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing	$	5,356,153		$	3,541,375		$	3,403,981		$	3,529,801		$	3,539,453
Interest-bearing		16,226,484			11,230,720			11,168,631			10,979,950			10,715,760
Total deposits		21,582,637			14,772,095			14,572,612			14,509,751			14,255,213
Short-term borrowings		405,349			108,015			108,018			108,732			232,741
Long-term debt		556,976			433,309			430,614			433,177			428,677
Other liabilities		301,159			230,857			245,306			249,102			239,059
Total liabilities		22,846,121			15,544,276			15,356,550			15,300,762			15,155,690

Shareholders’ equity:
Common stock		488,612			332,421			332,421			332,421			296,483
Treasury stock		(90,248	)		(91,646	)		(97,196	)		(97,251	)		(97,534	)
Additional paid-in capital		2,393,566			1,486,849			1,491,847			1,488,678			1,304,782
Retained earnings		1,100,965			1,121,102			1,093,854			1,063,324			1,005,086
Accumulated other comprehensive loss		(114,041	)		(121,621	)		(142,608	)		(129,094	)		(154,116	)
Total shareholders’ equity		3,778,854			2,727,105			2,678,318			2,658,078			2,354,701
Total liabilities and shareholders’ equity	$	26,624,975		$	18,271,381		$	18,034,868		$	17,958,840		$	17,510,391

Net Interest Income and Net Interest Margin

(Dollars in thousands)	Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 2024
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Loans held for investment	$	18,448,000	$	304,834	6.63	%	$	12,966,869	$	199,504	6.24	%	$	12,575,651	$	200,670	6.41	%
Loans held for sale		287,855		4,639	6.45	%		200,917		3,008	5.99	%		219,826		3,530	6.42	%
Taxable securities		3,106,565		24,917	3.21	%		1,883,535		10,971	2.33	%		1,832,002		9,258	2.02	%
Tax-exempt securities		462,732		4,309	3.72	%		259,800		1,443	2.22	%		263,937		1,451	2.20	%
Total securities		3,569,297		29,226	3.28	%		2,143,335		12,414	2.32	%		2,095,939		10,709	2.04	%
Interest-bearing balances with banks		901,803		9,057	4.03	%		824,743		8,639	4.25	%		595,030		7,874	5.32	%
Total interest-earning assets		23,206,955		347,756	6.01	%		16,135,864		223,565	5.61	%		15,486,446		222,783	5.77	%
Cash and due from banks		357,338						181,869						187,519
Intangible assets		1,589,490						1,002,511						1,008,638
Other assets		1,029,082						669,392						688,766
Total assets	$	26,182,865					$	17,989,636					$	17,371,369
Interest-bearing liabilities:
Interest-bearing demand⁽¹⁾	$	11,191,443	$	76,542	2.74	%	$	7,835,617	$	54,710	2.83	%	$	7,094,411	$	56,132	3.17	%
Savings deposits		1,322,007		1,032	0.31	%		813,451		711	0.35	%		839,638		729	0.35	%
Brokered deposits		—		—	—	%		—		—	—	%		294,650		3,944	5.37	%
Time deposits		3,404,482		34,347	4.05	%		2,474,218		23,965	3.93	%		2,487,873		26,816	4.34	%
Total interest-bearing deposits		15,917,932		111,921	2.82	%		11,123,286		79,386	2.89	%		10,716,572		87,621	3.28	%
Borrowed funds		1,036,045		13,118	5.07	%		556,734		6,747	4.88	%		583,965		7,564	5.19	%
Total interest-bearing liabilities		16,953,977		125,039	2.96	%		11,680,020		86,133	2.99	%		11,300,537		95,185	3.38	%
Noninterest-bearing deposits		5,233,976						3,408,830						3,509,109
Other liabilities		249,861						208,105						223,992
Shareholders’ equity		3,745,051						2,692,681						2,337,731
Total liabilities and shareholders’ equity	$	26,182,865					$	17,989,636					$	17,371,369
Net interest income/ net interest margin			$	222,717	3.85	%			$	137,432	3.45	%			$	127,598	3.31	%
Cost of funding					2.26	%					2.31	%					2.58	%
Cost of total deposits					2.12	%					2.22	%					2.47	%

_{⁽¹⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.}

Net Interest Income and Net Interest Margin, continued

(Dollars in thousands)	Six Months Ended
	June 30, 2025						June 30, 2024
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Interest-earning assets:
Loans held for investment	$	15,722,576	$	504,338	6.47	%	$	12,491,814	$	395,310	6.35	%
Loans held for sale		244,626		7,647	6.25	%		187,604		5,838	6.22	%
Taxable securities		2,498,428		35,888	2.87	%		1,861,909		18,763	2.02	%
Tax-exempt securities		361,827		5,752	3.18	%		267,108		2,956	2.21	%
Total securities		2,860,255		41,640	2.91	%		2,129,017		21,719	2.04	%
Interest-bearing balances with banks		863,486		17,696	4.13	%		582,683		15,655	5.40	%
Total interest-earning assets		19,690,943		571,321	5.84	%		15,391,118		438,522	5.72	%
Cash and due from banks		270,088						188,011
Intangible assets		1,297,622						1,009,232
Other assets		850,231						701,770
Total assets	$	22,108,884					$	17,290,131
Interest-bearing liabilities:
Interest-bearing demand⁽¹⁾	$	9,522,800	$	131,252	2.78	%	$	7,025,200	$	108,632	3.10	%
Savings deposits		1,069,134		1,743	0.33	%		850,018		1,459	0.34	%
Brokered deposits		—		—	—	%		370,129		9,931	5.38	%
Time deposits		2,941,920		58,312	3.99	%		2,403,646		50,212	4.20	%
Total interest-bearing deposits		13,533,854		191,307	2.85	%		10,648,993		170,234	3.21	%
Borrowed funds		797,714		19,865	5.00	%		573,182		14,840	5.19	%
Total interest-bearing liabilities		14,331,568		211,172	2.97	%		11,222,175		185,074	3.31	%
Noninterest-bearing deposits		4,326,445						3,513,860
Other liabilities		229,098						228,090
Shareholders’ equity		3,221,773						2,326,006
Total liabilities and shareholders’ equity	$	22,108,884					$	17,290,131
Net interest income/ net interest margin			$	360,149	3.68	%			$	253,448	3.30	%
Cost of funding					2.28	%					2.52	%
Cost of total deposits					2.16	%					2.41	%

_{⁽¹⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.}

Loan Portfolio

(Dollars in thousands)	As of
	Jun 30, 2025		Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024
Loan Portfolio:
Commercial, financial, agricultural	$	2,666,923	$	1,888,580	$	1,885,817	$	1,804,961	$	1,847,762
Lease financing		89,568		85,412		90,591		98,159		102,996
Real estate – construction		1,339,967		1,090,862		1,093,653		1,198,838		1,355,425
Real estate – 1-4 family mortgages		4,874,679		3,583,080		3,488,877		3,440,038		3,435,818
Real estate – commercial mortgages		9,470,134		6,320,120		6,236,068		5,995,152		5,766,478
Installment loans to individuals		122,176		87,539		90,014		90,500		96,276
Total loans	$	18,563,447	$	13,055,593	$	12,885,020	$	12,627,648	$	12,604,755

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands)	As of
	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024
Nonperforming Assets:
Nonaccruing loans	$	137,999		$	98,638		$	110,811		$	113,872		$	97,795
Loans 90 days or more past due		3,860			95			2,464			5,351			240
Total nonperforming loans		141,859			98,733			113,275			119,223			98,035
Other real estate owned		11,750			8,654			8,673			9,136			7,366
Total nonperforming assets	$	153,609		$	107,387		$	121,948		$	128,359		$	105,401

Criticized Loans
Classified loans	$	333,626		$	224,654		$	241,708		$	218,135		$	191,595
Special Mention loans		159,931			95,778			130,882			163,804			138,343
Criticized loans⁽¹⁾	$	493,557		$	320,432		$	372,590		$	381,939		$	329,938

Allowance for credit losses on loans	$	290,770		$	203,931		$	201,756		$	200,378		$	199,871
Net loan charge-offs (recoveries)	$	12,054		$	(125	)	$	1,722		$	703		$	5,481
Annualized net loan charge-offs / average loans		0.26	%		—	%		0.05	%		0.02	%		0.18	%
Nonperforming loans / total loans		0.76			0.76			0.88			0.94			0.78
Nonperforming assets / total assets		0.58			0.59			0.68			0.71			0.60
Allowance for credit losses on loans / total loans		1.57			1.56			1.57			1.59			1.59
Allowance for credit losses on loans / nonperforming loans		204.97			206.55			178.11			168.07			203.88
Criticized loans / total loans		2.66			2.45			2.89			3.02			2.62

_{⁽¹⁾ Criticized loans include classified and Special Mention loans.}

CONFERENCE CALL INFORMATION:
A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, July 23, 2025.

The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=gtM01rRI. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2025 Second Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

The webcast will be archived on www.renasant.com after the call and will remain accessible for one year. A replay can be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 6698526 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 6, 2025.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 121-year-old financial services institution. Renasant has assets of approximately $26.6 billion and operates 300 banking, lending, mortgage and wealth management offices throughout the Southeast and also offers factoring and asset-based lending on a nationwide basis.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “focus,” “possible,” “may increase,” “may fluctuate,” “will likely result,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would” and “could,” are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

Important factors currently known to management that could cause the Company’s actual results to differ materially from those in forward-looking statements include the following: (i) the Company’s ability to efficiently integrate acquisitions (including its recently-completed merger with The First into its operations, retain the customers of these businesses, grow the acquired operations and realize the cost savings expected from an acquisition to the extent and in the timeframe anticipated by management (including the possibility that such cost savings will not be realized when expected, or at all, as a result of the impact of, or challenges arising from, the integration of the acquired assets and assumed liabilities into the Company, potential adverse reactions or changes to business or employee relationships, or as a result of other unexpected factors or events); (ii) potential exposure to unknown or contingent risks and liabilities the Company has acquired, or may acquire, or target for acquisition, including in connection with its merger with The First; (iii) the effect of economic conditions and interest rates on a national, regional or international basis; (iv) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (v) competitive pressures in the consumer finance, commercial finance, financial services, asset management, retail banking, factoring and mortgage lending and auto lending industries; (vi) the financial resources of, and products available from, competitors; (vii) changes in laws and regulations as well as changes in accounting standards; (viii) changes in governmental and regulatory policy, whether applicable specifically to financial institutions or impacting the United States generally (such as, for example, changes in trade policy); (ix) increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of the Company’s merger with The First; (x) changes in the securities and foreign exchange markets; (xi) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xii) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of the Company’s investment securities portfolio; (xiii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiv) changes in the sources and costs of the capital the Company uses to make loans and otherwise fund the Company’s operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (xv) general economic, market or business conditions, including the impact of inflation; (xvi) changes in demand for loan and deposit products and other financial services; (xvii) concentrations of credit or deposit exposure; (xviii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xix) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xx) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xxi) geopolitical conditions, including acts or threats of terrorism and actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; (xxii) the impact, extent and timing of technological changes; and (xxiii) other circumstances, many of which are beyond management’s control.

Management believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company’s filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov.

The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

NON-GAAP FINANCIAL MEASURES:

In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, namely, (i) adjusted loan yield, (ii) adjusted net interest income and margin, (iii) pre-provision net revenue (including on an as-adjusted basis), (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) the adjusted return on average assets and on average equity and certain other performance ratios (namely, the ratio of pre-provision net revenue to average assets and the return on average tangible assets and on average tangible common equity (including each of the foregoing on an as-adjusted basis)), and (ix) the adjusted efficiency ratio.

These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, including related amortization, and/or certain gains or charges (such as, for the second quarter of 2025, merger and conversion expenses, the Day 1 acquisition provision for credit losses and unfunded commitments, and gain on sales of MSRs), with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption “Non-GAAP Reconciliations”.

None of the non-GAAP financial information that the Company has included in this release or the accompanying presentation slides are intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company’s calculations may not be comparable to similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

Non-GAAP Reconciliations

(Dollars in thousands, except per share data)	Three Months Ended															Six Months Ended
	Jun 30, 2025			Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Jun 30, 2025			Jun 30, 2024
Adjusted Pre-Provision Net Revenue (“PPNR”)
Net income (GAAP)	$	1,018		$	41,518		$	44,747		$	72,455		$	38,846		$	42,536		$	78,255
Income taxes		1,649			10,448			5,006			24,924			9,666			12,097			19,578
Provision for credit losses (including unfunded commitments)		81,322			4,750			2,600			935			3,300			86,072			5,738
Pre-provision net revenue (non-GAAP)	$	83,989		$	56,716		$	52,353		$	98,314		$	51,812		$	140,705		$	103,571
Merger and conversion expense		20,479			791			2,076			11,273			—			21,270			—
Gain on extinguishment of debt		—			—			—			—			—			—			(56	)
Gain on sales of MSR		(1,467	)		—			(252	)		—			—			(1,467	)		(3,472	)
Gain on sale of insurance agency		—			—			—			(53,349	)		—			—			—
Adjusted pre-provision net revenue (non-GAAP)	$	103,001		$	57,507		$	54,177		$	56,238		$	51,812		$	160,508		$	100,043

Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)	$	1,018		$	41,518		$	44,747		$	72,455		$	38,846		$	42,536		$	78,255
Amortization of intangibles		8,884			1,080			1,133			1,160			1,186			9,964			2,398
Tax effect of adjustments noted above⁽¹⁾		(2,212	)		(270	)		(283	)		(296	)		(233	)		(2,481	)		(470	)
Tangible net income (non-GAAP)	$	7,690		$	42,328		$	45,597		$	73,319		$	39,799		$	50,019		$	80,183

Net income (GAAP)	$	1,018		$	41,518		$	44,747		$	72,455		$	38,846		$	42,536		$	78,255
Merger and conversion expense		20,479			791			2,076			11,273			—			21,270			—
Day 1 acquisition provision for loan losses		62,190			—			—			—			—			62,190			—
Day 1 acquisition provision for unfunded commitments		4,422			—			—			—			—			4,422			—
Gain on extinguishment of debt		—			—			—			—			—			—			(56	)
Gain on sales of MSR		(1,467	)		—			(252	)		—			—			(1,467	)		(3,472	)
Gain on sale of insurance agency		—			—			—			(53,349	)		—			—			—
Tax effect of adjustments noted above⁽¹⁾		(20,765	)		(198	)		(113	)		12,581			—			(20,964	)		694
Adjusted net income (non-GAAP)	$	65,877		$	42,111		$	46,458		$	42,960		$	38,846		$	107,987		$	75,421
Amortization of intangibles		8,884			1,080			1,133			1,160			1,186			9,964			2,398
Tax effect of adjustments noted above⁽¹⁾		(2,212	)		(270	)		(283	)		(296	)		(233	)		(2,481	)		(470	)
Adjusted tangible net income (non-GAAP)	$	72,549		$	42,921		$	47,308		$	43,824		$	39,799		$	115,470		$	77,349
Tangible Assets and Tangible Shareholders’ Equity
Average shareholders’ equity (GAAP)	$	3,745,051		$	2,692,681		$	2,656,885		$	2,553,586		$	2,337,731		$	3,221,773		$	2,326,006
Average intangible assets		(1,589,490	)		(1,002,511	)		(1,003,551	)		(1,004,701	)		(1,008,638	)		(1,297,622	)		(1,009,232	)
Average tangible shareholders’ equity (non-GAAP)	$	2,155,561		$	1,690,170		$	1,653,334		$	1,548,885		$	1,329,093		$	1,924,151		$	1,316,774

Average assets (GAAP)	$	26,182,865		$	17,989,636		$	17,943,148		$	17,681,664		$	17,371,369		$	22,108,884		$	17,290,131
Average intangible assets		(1,589,490	)		(1,002,511	)		(1,003,551	)		(1,004,701	)		(1,008,638	)		(1,297,622	)		(1,009,232	)
Average tangible assets (non-GAAP)	$	24,593,375		$	16,987,125		$	16,939,597		$	16,676,963		$	16,362,731		$	20,811,262		$	16,280,899

Shareholders’ equity (GAAP)	$	3,778,854		$	2,727,105		$	2,678,318		$	2,658,078		$	2,354,701		$	3,778,854		$	2,354,701
Intangible assets		(1,583,533	)		(1,001,923	)		(1,003,003	)		(1,004,136	)		(1,008,062	)		(1,583,533	)		(1,008,062	)
Tangible shareholders’ equity (non-GAAP)	$	2,195,321		$	1,725,182		$	1,675,315		$	1,653,942		$	1,346,639		$	2,195,321		$	1,346,639

Total assets (GAAP)	$	26,624,975		$	18,271,381		$	18,034,868		$	17,958,840		$	17,510,391		$	26,624,975		$	17,510,391
Intangible assets		(1,583,533	)		(1,001,923	)		(1,003,003	)		(1,004,136	)		(1,008,062	)		(1,583,533	)		(1,008,062	)
Total tangible assets (non-GAAP)	$	25,041,442		$	17,269,458		$	17,031,865		$	16,954,704		$	16,502,329		$	25,041,442		$	16,502,329

Adjusted Performance Ratios
Return on average assets (GAAP)		0.02	%		0.94	%		0.99	%		1.63	%		0.90	%		0.39	%		0.91	%
Adjusted return on average assets (non-GAAP)		1.01			0.95			1.03			0.97			0.90			0.98			0.88
Return on average tangible assets (non-GAAP)		0.13			1.01			1.07			1.75			0.98			0.48			0.99
Pre-provision net revenue to average assets (non-GAAP)		1.29			1.28			1.16			2.21			1.20			1.28			1.20
Adjusted pre-provision net revenue to average assets (non-GAAP)		1.58			1.30			1.20			1.27			1.20			1.46			1.16
Adjusted return on average tangible assets (non-GAAP)		1.18			1.02			1.11			1.05			0.98			1.12			0.96
Return on average equity (GAAP)		0.11			6.25			6.70			11.29			6.68			2.66			6.77
Adjusted return on average equity (non-GAAP)		7.06			6.34			6.96			6.69			6.68			6.76			6.52
Return on average tangible equity (non-GAAP)		1.43			10.16			10.97			18.83			12.04			5.24			12.25
Adjusted return on average tangible equity (non-GAAP)		13.50			10.30			11.38			11.26			12.04			12.10			11.81

Adjusted Diluted Earnings Per Share
Average diluted shares outstanding		95,136,160			64,028,025			64,056,303			61,632,448			56,684,626			79,671,775			56,607,947

Diluted earnings per share (GAAP)	$	0.01		$	0.65		$	0.70		$	1.18		$	0.69		$	0.53		$	1.38
Adjusted diluted earnings per share (non-GAAP)	$	0.69		$	0.66		$	0.73		$	0.70		$	0.69		$	1.36		$	1.33

Tangible Book Value Per Share
Shares outstanding		95,019,311			63,739,467			63,565,690			63,564,028			56,367,924			95,019,311			56,367,924

Book value per share (GAAP)	$	39.77		$	42.79		$	42.13		$	41.82		$	41.77		$	39.77		$	41.77
Tangible book value per share (non-GAAP)	$	23.10		$	27.07		$	26.36		$	26.02		$	23.89		$	23.10		$	23.89

Tangible Common Equity Ratio
Shareholders’ equity to assets (GAAP)		14.19	%		14.93	%		14.85	%		14.80	%		13.45	%		14.19	%		13.45	%
Tangible common equity ratio (non-GAAP)		8.77	%		9.99	%		9.84	%		9.76	%		8.16	%		8.77	%		8.16	%
Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)	$	222,717		$	137,432		$	135,502		$	133,576		$	127,598		$	360,149		$	253,448

Total noninterest income (GAAP)	$	48,334		$	36,395		$	34,218		$	89,299		$	38,762		$	84,729		$	80,143
Gain on sales of MSR		(1,467	)		—			(252	)		—			—			(1,467	)		(3,472	)
Gain on extinguishment of debt		—			—			—			—			—			—			(56	)
Gain on sale of insurance agency		—			—			—			(53,349	)		—			—			—
Total adjusted noninterest income (non-GAAP)	$	46,867		$	36,395		$	33,966		$	35,950		$	38,762		$	83,262		$	76,615

Noninterest expense (GAAP)	$	183,204		$	113,876		$	114,747		$	121,983		$	111,976		$	297,080		$	224,888
Amortization of intangibles		(8,884	)		(1,080	)		(1,133	)		(1,160	)		(1,186	)		(9,964	)		(2,398	)
Merger and conversion expense		(20,479	)		(791	)		(2,076	)		(11,273	)		—			(21,270	)		—
Total adjusted noninterest expense (non-GAAP)	$	153,841		$	112,005		$	111,538		$	109,550		$	110,790		$	265,846		$	222,490

Efficiency ratio (GAAP)		67.59	%		65.51	%		67.61	%		54.73	%		67.31	%		66.78	%		67.41	%
Adjusted efficiency ratio (non-GAAP)		57.07	%		64.43	%		65.82	%		64.62	%		66.60	%		59.95	%		67.41	%

Adjusted Net Interest Income and Adjusted Net Interest Margin
Net interest income (FTE) (GAAP)	$	222,717		$	137,432		$	135,502		$	133,576		$	127,598		$	360,149		$	253,448
Net interest income collected on problem loans		(2,779	)		(1,026	)		(151	)		(642	)		146			(3,805	)		23
Accretion recognized on purchased loans		(17,834	)		(558	)		(616	)		(1,089	)		(897	)		(18,392	)		(1,697	)
Amortization recognized on purchased time deposits		4,396			—			—			—			—			4,396			—
Amortization recognized on purchased long term borrowings		1,072			—			—			—			—			1,072			—
Adjustments to net interest income	$	(15,145	)	$	(1,584	)	$	(767	)	$	(1,731	)	$	(751	)	$	(16,729	)	$	(1,674	)
Adjusted net interest income (FTE) (non-GAAP)	$	207,572		$	135,848		$	134,735		$	131,845		$	126,847		$	343,420		$	251,774

Net interest margin (GAAP)		3.85	%		3.45	%		3.36	%		3.36	%		3.31	%		3.68	%		3.30	%
Adjusted net interest margin (non-GAAP)		3.58	%		3.42	%		3.34	%		3.32	%		3.29	%		3.51	%		3.28	%

Adjusted Loan Yield
Loan interest income (FTE) (GAAP)	$	304,834		$	199,504		$	201,562		$	204,935		$	200,670		$	504,338		$	395,310
Net interest income collected on problem loans		(2,779	)		(1,026	)		(151	)		(642	)		146			(3,805	)		23
Accretion recognized on purchased loans		(17,834	)		(558	)		(616	)		(1,089	)		(897	)		(18,392	)		(1,697	)
Adjusted loan interest income (FTE) (non-GAAP)	$	284,221		$	197,920		$	200,795		$	203,204		$	199,919		$	482,141		$	393,636

Loan yield (GAAP)		6.63	%		6.24	%		6.29	%		6.47	%		6.41	%		6.47	%		6.35	%
Adjusted loan yield (non-GAAP)		6.18	%		6.19	%		6.27	%		6.41	%		6.38	%		6.18	%		6.32	%

_{⁽¹⁾ Tax effect is calculated based on the respective legal entity’s appropriate federal and state tax rates (as applicable) for the period, and includes the estimated impact of both current and deferred tax expense.}


Contacts:	For Media:	For Financials:
	John S. Oxford	James C. Mabry IV
	Senior Vice President	Executive Vice President
	Chief Marketing Officer	Chief Financial Officer
	(662) 680-1219	(662) 680-1281

The MIL Network –

July 23, 2025

MIL-OSI: FS Bancorp, Inc. Reports Second Quarter Net Income of $7.7 Million or $0.99 Per Diluted Share and Declares 50th Consecutive Quarterly Cash Dividend in Addition to a Special Dividend

Source: GlobeNewswire (MIL-OSI)

MOUNTLAKE TERRACE, Wash., July 22, 2025 (GLOBE NEWSWIRE) — FS Bancorp, Inc. (NASDAQ: FSBW) (the “Company”), the holding company for 1st Security Bank of Washington (the “Bank”) today reported 2025 second quarter net income of $7.7 million, or $0.99 per diluted share, compared to $9.0 million, or $1.13 per diluted share, for the comparable quarter one year ago. For the six months ended June 30, 2025, net income was $15.7 million, or $1.99 per diluted share, compared to net income of $17.4 million, or $2.20 per diluted share, for the comparable six-month period in 2024.

“We are proud of the balance sheet growth this quarter driven by solid loan demand. Additionally, our share repurchase activity reflects our continued confidence and commitment to delivering long-term value to our shareholders,” stated Phillip Whittington, CFO.

“We are pleased to announce that our Board of Directors has approved our 50th consecutive quarterly cash dividend of $0.28 per common share, demonstrating our continued commitment to delivering value to our shareholders. In recognition of this milestone, the Board also approved a special dividend of $0.22 per common share. Both dividends will be paid on August 21, 2025, to shareholders of record as of August 7, 2025,” noted Matthew Mullet, President.

2025 Second Quarter Highlights

Net income was $7.7 million for the second quarter of 2025, compared to $8.0 million for the previous quarter, and $9.0 million for the comparable quarter one year ago;
Total deposits decreased $61.8 million, or 2.4%, to $2.55 billion at June 30, 2025, primarily due to a decrease of $59.1 million in brokered deposits, compared to $2.62 billion at March 31, 2025, and increased $170.6 million, or 7.2%, from $2.38 billion at June 30, 2024. Noninterest-bearing deposits were $654.1 million at June 30, 2025, $676.7 million at March 31, 2025, and $623.3 million at June 30, 2024;
Borrowings increased $165.5 million, or 240.5% to $234.3 million at June 30, 2025, compared to $68.8 million at March 31, 2025, and increased $52.4 million, or 28.8%, from $181.9 million at June 30, 2024;
Loans receivable, net increased $81.2 million, or 3.2%, to $2.58 billion at June 30, 2025, compared to $2.50 billion at March 31, 2025, and increased $125.1 million, or 5.1%, from $2.46 billion at June 30, 2024;
Consumer loans were $606.3 million at June 30, 2025, a decrease of $2.6 million, or 0.4%, from $608.9 million in the previous quarter, and a decrease of $35.4 million, or 5.5%, from $641.7 million in the comparable quarter one year ago. During the three months ended June 30, 2025, consumer loan originations included 82.5% of home improvement loans originated with a Fair Isaac Corporation (“FICO”) score above 720;
Repurchased 132,282 shares of the Company’s common stock in the second quarter of 2025 at an average price of $38.92 per share with $725,000 remaining for future purchases under the existing share repurchase plan at June 30, 2025. In addition, as previously announced on July 9, 2025, the Board approved a new share repurchase plan authorizing the repurchase of up to $5.0 million in shares of the Company’s outstanding common stock;
Book value per share increased $0.43 to $39.55 at June 30, 2025, compared to $39.12 at March 31, 2025, and increased $2.40 from $37.15 at June 30, 2024. Tangible book value per share (non-GAAP financial measure) increased $0.50 to $37.46 at June 30, 2025, compared to $36.96 at March 31, 2025, and increased $2.80 from $34.66 at June 30, 2024. See, “Non-GAAP Financial Measures;”
Segment reporting in the second quarter of 2025 reflected net income of $7.4 million for the Commercial and Consumer Banking segment and $351,000 for the Home Lending segment, compared to net income of $7.8 million and $242,000 in the prior quarter, and net income of $8.0 million and $1.0 million in the second quarter of 2024, respectively; and
Regulatory capital ratios at the Bank were 14.1% for total risk-based capital and 11.2% for Tier 1 leverage capital at June 30, 2025, compared to 14.4% for total risk-based capital and 11.3% for Tier 1 leverage capital at March 31, 2025.

Segment Reporting

The Company operates through two reportable segments: Commercial and Consumer Banking and Home Lending. The Commercial and Consumer Banking segment provides diversified financial products and services to our commercial and consumer customers. These products and services include deposit products; residential, consumer, business and commercial real estate lending and cash management services. This segment also manages the Bank’s investment portfolio and other assets. The Home Lending segment originates one-to-four-family residential mortgage loans primarily for sale in the secondary markets as well as loans held for investment.

The tables below provide a summary of segment reporting at or for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

	At or For the Three Months Ended June 30, 2025
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	29,179		$	2,933		$	32,112
Provision for credit losses		(1,849	)		(172	)		(2,021	)
Noninterest income⁽²⁾		2,297			2,873			5,170
Noninterest expense⁽³⁾		(20,313	)		(5,189	)		(25,502	)
Income before provision for income taxes		9,314			445			9,759
Provision for income taxes		(1,937	)		(94	)		(2,031	)
Net income	$	7,377		$	351		$	7,728
Total average assets for period ended	$	2,466,917		$	649,443		$	3,116,360
Full-time employees (“FTEs”)		452			115			567

	At or Three Months Ended June 30, 2024
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	28,051		$	2,350		$	30,401
(Provision) recovery for credit losses		(1,214	)		137			(1,077	)
Noninterest income⁽²⁾		2,269			3,599			5,868
Noninterest expense⁽³⁾		(19,043	)		(4,814	)		(23,857	)
Income before provision for income taxes		10,063			1,272			11,335
Provision for income taxes		(2,113	)		(263	)		(2,376	)
Net income	$	7,950		$	1,009		$	8,959
Total average assets for period ended	$	2,359,741		$	588,090		$	2,947,831
FTEs		450			121			571

	At or For the Six Months Ended June 30, 2025
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	57,586		$	5,507		$	63,093
Provision for credit losses		(3,170	)		(443	)		(3,613	)
Noninterest income⁽²⁾		4,542			5,754			10,296
Noninterest expense⁽³⁾		(40,489	)		(10,067	)		(50,556	)
Income before provision for income taxes		18,469			751			19,220
Provision for income taxes		(3,314	)		(157	)		(3,471	)
Net income	$	15,155		$	594		$	15,749
Total average assets for period ended	$	2,440,654		$	634,013		$	3,074,667
FTEs		452			115			567

	At or For the Six Months Ended June 30, 2024
Condensed income statement:	Commercial and Consumer Banking			Home Lending			Total
Net interest income⁽¹⁾	$	56,137		$	4,610		$	60,747
Provision for credit losses		(2,465	)		(11	)		(2,476	)
Noninterest income⁽²⁾		4,662			6,317			10,979
Noninterest expense⁽³⁾		(38,051	)		(9,335	)		(47,386	)
Income before provision for income taxes		20,283			1,581			21,864
Provision for income taxes		(4,182	)		(326	)		(4,508	)
Net income	$	16,101		$	1,255		$	17,356
Total average assets for period ended	$	2,380,803		$	572,386		$	2,953,189
FTEs		450			121			571

__________________________

(1)		Net interest income is the difference between interest earned on assets and the cost of liabilities to fund those assets. Interest earned includes actual interest earned on segment assets and, if the segment has excess liabilities, interest credits for providing funding to the other segment. The cost of liabilities includes interest expense on segment liabilities and, if the segment does not have enough liabilities to fund its assets, a funding charge based on the cost of assigned liabilities to fund segment assets.
(2)		Noninterest income includes activity from certain residential mortgage loans that were initially originated for sale and measured at fair value and subsequently transferred to loans held for investment. Gains and losses from changes in fair value for these loans are reported in earnings as a component of noninterest income. For the three and six months ended June 30, 2025, the Company recorded a net increase in fair value of $3,000 and $266,000, respectively, compared to a net increase in fair value of $184,000 and $186,000, respectively for the three and six months ended June 30, 2024. As of June 30, 2025 and 2024, there were $13.2 million and $13.9 million, respectively, in residential mortgage loans recorded at fair value as they were previously transferred from loans held for sale to loans held for investment.
(3)		Noninterest expense includes allocated overhead expense from general corporate activities. Allocation is determined based on a combination of segment assets and FTEs. For the three and six months ended June 30, 2025 and 2024, the Home Lending segment included allocated overhead expenses of $1.8 million and $3.7 million, compared to $1.5 million and $3.0 million, respectively.

Asset Summary

The following table presents the components and changes in total assets as of the dates indicated.

ASSETS							Linked Quarter						Prior Year
(Dollars in thousands)	June 30,		March 31,		June 30,		Change						Quarter Change
	2025		2025		2024		$			%			$			%
Cash and due from banks	$	15,168	$	18,657	$	20,005	$	(3,489	)		(19	)%	$	(4,837	)		(24	)%
Interest-bearing deposits at other financial institutions		18,027		44,084		13,006		(26,057	)		(59	)		5,021			39
Total cash and cash equivalents		33,195		62,741		33,011		(29,546	)		(47	)		184			1
Certificates of deposit at other financial institutions		248		1,234		12,707		(986	)		(80	)		(12,459	)		(98	)
Securities available-for-sale, at fair value		302,692		291,133		221,182		11,559			4			81,510			37
Securities held-to-maturity, net		31,562		10,434		8,455		21,128			202			23,107			273
Loans held for sale, at fair value		53,630		31,038		53,811		22,592			73			(181	)		—
Loans receivable, net		2,582,272		2,501,117		2,457,184		81,155			3			125,088			5
Accrued interest receivable		14,270		14,406		13,792		(136	)		(1	)		478			3
Premises and equipment, net		30,098		29,451		29,999		647			2			99			—
Operating lease right-of-use		7,969		4,979		5,784		2,990			60			2,185			38
Federal Home Loan Bank stock, at cost		11,579		5,256		10,322		6,323			120			1,257			12
Deferred tax asset, net		7,782		7,009		4,590		773			11			3,192			70
Bank owned life insurance (“BOLI”), net		38,262		38,778		38,201		(516	)		(1	)		61			—
MSRs, held at the lower of cost or fair value		8,652		8,926		9,352		(274	)		(3	)		(700	)		(7	)
Goodwill		3,592		3,592		3,592		—			—			—			—
Core deposit intangible, net		12,071		12,879		15,483		(808	)		(6	)		(3,412	)		(22	)
Other assets		38,139		43,105		23,912		(4,966	)		(12	)		14,227			59
TOTAL ASSETS	$	3,176,013	$	3,066,078	$	2,941,377	$	109,935			4	%	$	234,636			8	%

The increase in total assets reflects the Company’s continued focus on balance sheet growth through loan origination and selective investment activity, funded by a combination of on-balance sheet liquidity and borrowings.

																						Prior
LOAN PORTFOLIO																			Linked			Year
(Dollars in thousands)																			Quarter			Quarter
COMMERCIAL REAL ESTATE	June 30, 2025						March 31, 2025						June 30, 2024						$			$
(“CRE”) LOANS	Amount			Percent			Amount			Percent			Amount			Percent			Change			Change
CRE owner occupied	$	180,250			6.8	%	$	164,911			6.5	%	$	177,723			7.1	%	$	15,339		$	2,527
CRE non-owner occupied		171,979			6.6			174,188			6.9			181,681			7.3			(2,209	)		(9,702	)
Commercial and speculative construction and development		300,723			11.5			288,978			11.4			220,793			8.9			11,745			79,930
Multi-family		263,185			10.1			244,940			9.7			239,675			9.6			18,245			23,510
Total CRE loans		916,137			35.0			873,017			34.5			819,872			32.9			43,120			96,265

RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)		639,881			24.4			637,299			25.2			588,966			23.7			2,582			50,915
Home equity		85,613			3.3			73,846			2.9			73,749			3.0			11,767			11,864
Residential custom construction		54,024			2.1			48,810			1.9			53,416			2.1			5,214			608
Total residential real estate loans		779,518			29.8			759,955			30.0			716,131			28.8			19,563			63,387

CONSUMER LOANS
Indirect home improvement		530,375			20.3			532,038			21.0			563,621			22.6			(1,663	)		(33,246	)
Marine		72,765			2.8			73,737			2.9			74,627			3.0			(972	)		(1,862	)
Other consumer		3,151			0.1			3,118			0.1			3,440			0.1			33			(289	)
Total consumer loans		606,291			23.2			608,893			24.0			641,688			25.7			(2,602	)		(35,397	)

COMMERCIAL BUSINESS LOANS
Commercial and industrial (“C&I”)		294,563			11.3			274,956			10.9			285,183			11.6			19,607			9,380
Warehouse lending		17,952			0.7			15,949			0.6			25,548			1.0			2,003			(7,596	)
Total commercial business loans		312,515			12.0			290,905			11.5			310,731			12.6			21,610			1,784
Total loans receivable, gross		2,614,461			100.0	%		2,532,770			100.0	%		2,488,422			100.0	%		81,691			126,039

Allowance for credit losses on loans		(32,189	)					(31,653	)					(31,238	)					(536	)		(951	)
Total loans receivable, net	$	2,582,272					$	2,501,117					$	2,457,184					$	81,155		$	125,088

The composition of CRE loans at the dates indicated were as follows:

(Dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024
CRE by Type:	Amount		Amount		Amount
CRE non-owner occupied:
Office	$	39,141	$	39,406	$	41,380
Retail		38,652		35,520		37,507
Hospitality/restaurant		26,489		27,377		28,314
Self-storage		19,075		19,092		19,141
Mixed use		18,387		18,868		18,062
Industrial		14,444		15,033		17,163
Senior housing/assisted living		7,448		7,506		7,675
Other		3,670		6,579		6,847
Land		2,206		2,314		3,021
Education/worship		2,467		2,493		2,571
Total CRE non-owner occupied		171,979		174,188		181,681
CRE owner occupied:
Industrial		77,419		66,618		63,970
Office		40,156		40,447		41,978
Retail		19,470		20,535		20,885
Other		9,483		8,529		8,354
Hospitality/restaurant		7,230		7,306		10,800
Automobile related		7,215		7,266		8,200
Mixed use		5,548		5,579		5,680
Agriculture		4,652		3,990		3,639
Education/worship		4,630		4,641		4,610
Car wash		4,447		—		9,607
Total CRE owner occupied		180,250		164,911		177,723
Total	$	352,229	$	339,099	$	359,404

The following table includes CRE loans repricing or maturing within the next two years, excluding loans that reprice simultaneously with changes to the prime rate:

																			Current
(Dollars in																			Weighted
thousands)	For the Quarter Ended																		Average
CRE by type:	Sep 30, 2025		Dec 31, 2025		Mar 31, 2026		Jun 30, 2026		Sep 30, 2026		Dec 31, 2026		Mar 31, 2027		Jun 30, 2027		Total		Rate
Agriculture	$	716	$	314	$	178	$	265	$	287	$	—	$	—	$	—	$	1,760	6.28	%
Apartment		—		13,679		1,128		13,788		9,747		7,062		4,117		—		49,521	4.96	%
Hotel / hospitality		2,393		—		113		1,243		—		—		103		—		3,852	5.26	%
Industrial		—		10,002		976		586		1,578		—		13,412		263		26,817	5.12	%
Mixed use		241		—		7,101		—		—		379		—		—		7,721	8.14	%
Office		15,015		6,055		515		1,629		554		7,695		2,857		1,213		35,533	5.50	%
Other		1,921		240		884		—		—		1,485		—		3,515		8,045	4.80	%
Retail		1,020		—		421		3,448		—		3,399		3,027		2,801		14,116	4.26	%
Education/worship		1,314		—		—		—		2,467		—		—		—		3,781	5.18	%
Senior housing and assisted living		—		—		2,142		—		—		—		—		1,372		3,514	4.76	%
Total	$	22,620	$	30,290	$	13,458	$	20,959	$	14,633	$	20,020	$	23,516	$	9,164	$	154,660	5.22	%

The composition of construction loans at the dates indicated were as follows:

(Dollars in thousands)	June 30, 2025					March 31, 2025					June 30, 2024
Construction Types:	Amount		Percent			Amount		Percent			Amount		Percent
Commercial construction – retail	$	8,447		2.4	%	$	8,157		2.4	%	$	8,698		3.2	%
Commercial construction – office		9,083		2.6			6,487		1.9			4,737		1.7
Commercial construction – self storage		16,553		4.7			16,012		4.7			10,000		3.6
Commercial construction – hotel		3,673		1.0			402		0.1			7,807		2.8
Multi-family		23,119		6.5			31,275		9.3			30,960		11.3
Custom construction – single family residential and single family manufactured residential		45,570		12.8			41,143		12.2			46,106		16.8
Custom construction – land, lot and acquisition and development		8,454		2.4			7,667		2.3			7,310		2.7
Speculative residential construction – vertical		200,375		56.5			186,042		55.1			131,294		47.9
Speculative residential construction – land, lot and acquisition and development		39,473		11.1			40,603		12.0			27,297		10.0
Total	$	354,747		100.0	%	$	337,788		100.0	%	$	274,209		100.0	%

Originations of one-to-four-family loans to purchase and refinance a home for the periods indicated were as follows:

(Dollars in																Prior Year
thousands)	For the Three Months Ended												Linked Quarter			Quarter
	June 30, 2025				March 31, 2025				June 30, 2024				$		%	$			%
	Amount		Percent		Amount		Percent		Amount		Percent		Change		Change	Change			Change
Purchase	$	170,854	85.7	%	$	120,719	83.0	%	$	193,715	92.3	%	$	50,135	41.5	$	(22,861	)	(11.8	)%
Refinance		28,470	14.3			24,677	17.0			16,173	7.7			3,793	15.4		12,297		76.0	%
Total	$	199,324	100.0	%	$	145,396	100.0	%	$	209,888	100.0	%	$	53,928	37.1	$	(10,564	)	(5.0	)%

(Dollars in thousands)	For the Six Months Ended June 30,
	2025				2024
	Amount		Percent		Amount		Percent		$ Change			% Change
Purchase	$	290,737	84.3	%	$	329,292	90.5	%	$	(38,555	)	(11.7	)	%
Refinance		53,983	15.7			34,545	9.5			19,438		56.3		%
Total	$	344,720	100.0	%	$	363,837	100.0	%	$	(19,117	)	(5.3	)	%

During the quarter ended June 30, 2025, the Company sold $127.1 million of one-to-four-family loans compared to $91.9 million during the previous quarter and $164.5 million during the same quarter one year ago. The increase in the volume of loans sold during the current quarter compared to the prior quarter was primarily due to seasonal factors, including the spring homebuying season. This increased demand for homes generally results in a higher volume of loan originations and, consequently, more loans available for sale. Gross margins on home loan sales decreased to 3.06% for the quarter ended June 30, 2025, compared to 3.26% in the previous quarter and increased from 2.96% in the same quarter one year ago. Gross margins are defined as the margin on loans sold (cash sales) without the impact of deferred costs.

Liabilities and Equity Summary

The following table summarizes the components and changes in deposits, borrowings, equity, and book value per common share at the dates indicated.

(Dollars in thousands)																Linked			Prior Year
Deposits	June 30, 2025					March 31, 2025					June 30, 2024					Quarter			Quarter
Transactional deposits:	Amount		Percent			Amount		Percent			Amount		Percent			$ Change			$ Change
Noninterest-bearing checking	$	643,573		25.2	%	$	659,417		25.2	%	$	613,137		25.7	%	$	(15,844	)	$	30,436
Interest-bearing checking:
Retail deposits		181,240		7.1			171,396		6.6			166,839		7.0			9,844			14,401
Brokered deposits		30,020		1.2			30,073		1.1			—		—			(53	)		30,020
Total interest-bearing checking		211,260		8.3			201,469		7.7			166,839		7.0			9,791			44,421
Escrow accounts related to mortgages serviced⁽¹⁾		10,496		0.4			17,289		0.7			10,212		0.4			(6,793	)		284
Subtotal		865,329		33.9			878,175		33.6			790,188		33.1			(12,846	)		75,141
Savings and money market:
Savings		159,601		6.3			160,332		6.1			151,398		6.4			(731	)		8,203
Money market:
Retail deposits		350,548		13.6			343,098		13.1			339,946		14.2			7,450			10,602
Brokered deposits		251		0.1			251		—			4,049		0.2			—			(3,798	)
Total money market		350,799		13.7			343,349		13.1			343,995		14.4			7,450			6,804
Subtotal		510,400		20.0			503,681		19.2			495,393		20.8			6,719			15,007
Certificates of deposit:
Retail CDs		891,355		34.9			881,630		33.7			823,866		34.6			9,725			67,489
Nonretail CDs:
Online CDs		3,423		0.1			9,354		0.4			9,354		0.4			(5,931	)		(5,931	)
Public CDs		2,114		0.1			2,440		0.1			2,983		0.1			(326	)		(869	)
Brokered CDs		280,754		11.0			339,871		13.0			261,019		11.0			(59,117	)		19,735
Total nonretail CDs		286,291		11.2			351,665		13.5			273,356		11.5			(65,374	)		12,935
Subtotal		1,177,646		46.1			1,233,295		47.2			1,097,222		46.1			(55,649	)		80,424
Total deposits	$	2,553,375		100.0	%	$	2,615,151		100.0	%	$	2,382,803		100.0	%	$	(61,776	)	$	170,572
Borrowings⁽²⁾	$	234,305				$	68,805				$	181,895				$	165,500		$	52,410
Equity	$	297,203				$	298,840				$	284,026				$	(1,637	)	$	13,177
Book value per common share	$	39.55				$	39.12				$	37.15				$	0.43		$	2.40

__________________________

(1)		Primarily noninterest-bearing accounts based on applicable state law.
(2)		Comprised of FHLB advances and Federal Reserve Bank borrowings.

At June 30, 2025, the Bank had uninsured deposits of approximately $677.2 million, compared to approximately $679.4 million at March 31, 2025, and $586.6 million at June 30, 2024. The uninsured amounts are estimates based on the methodologies and assumptions used for the Bank’s regulatory reporting requirements.

In reference to the table above, the linked quarter decrease in stockholders’ equity at June 30, 2025, compared to March 31, 2025, was primarily due to share repurchases of $5.1 million, cash dividends paid of $2.1 million, and $525,000 in equity award compensation, partially offset by net income of $7.7 million. Stockholders’ equity was also impacted by a decline in unrealized fair value on securities available for sale of $1.2 million, net of tax, and fair value and cash flow hedges of $1.6 million, net of tax, reflecting changes in market interest rates during the quarter, resulting in a $2.8 million decrease in accumulated other comprehensive loss, net of tax.

The Bank is considered “well capitalized” under the capital requirement established by the Federal Deposit Insurance Corporation (“FDIC”) and the Company exceeded all regulatory capital requirements. At June 30, 2025, capital ratios presented for the Bank and the Company were as follows:

	At June 30, 2025
	Bank		Company
Total risk-based capital (to risk-weighted assets)	14.07	%	14.16	%
Tier 1 leverage capital (to average assets)	11.18	%	9.65	%
CET 1 capital (to risk-weighted assets)	12.82	%	11.07	%

Credit Quality

The following table summarizes the changes in the ACL on loans, nonperforming loans, and substandard loans at the dates indicated.

ACL ON LOANS	June 30,			March 31,			June 30,			Linked			Prior Year
(Dollars in thousands)	2025			2025			2024			Quarter			Quarter
	Amount			Amount			Amount			$ Change			$ Change
Beginning ACL balance	$	(31,653	)	$	(31,870	)	$	(31,479	)	$	217		$	(174	)
Provision		(1,715	)		(1,505	)		(1,001	)		(210	)		(714	)
Charge-offs
Indirect		1,555			1,579			825			(24	)		730
Marine		43			20			157			23			(114	)
Other		42			37			33			5			9
Commercial business		—			433			733			(433	)		(733	)
Subtotal		1,640			2,069			1,748			(429	)		(108	)
Recoveries
Indirect		(330	)		(340	)		(307	)		10			(23	)
Marine		(54	)		(3	)		(110	)		(51	)		56
Other		(7	)		(4	)		(4	)		(3	)		(3	)
Commercial business		(70	)		—			(85	)		(70	)		15
Subtotal		(461	)		(347	)		(506	)		(114	)		45
Ending ACL balance	$	(32,189	)	$	(31,653	)	$	(31,238	)	$	(536	)	$	(951	)

NONPERFORMING LOANS	June 30,		March 31,		June 30,		Linked			Prior Year
(Dollars in thousands)	2025		2025		2024		Quarter			Quarter
CRE LOANS	Amount		Amount		Amount		$ Change			$ Change
CRE	$	2,046	$	1,196	$	1,116	$	850		$	930
Commercial and speculative construction and development		9,083		6,487		4,737		2,596			4,346
Total CRE loans		11,129		7,683		5,853		3,446			5,276

RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)		1,809		1,134		170		675			1,639
Home equity		251		252		156		(1	)		95
Total residential real estate loans		2,060		1,386		326		674			1,734

CONSUMER LOANS
Indirect home improvement		3,365		2,821		2,319		544			1,046
Marine		567		648		327		(81	)		240
Other consumer		13		1		6		12			7
Total consumer loans		3,945		3,470		2,652		475			1,293

COMMERCIAL BUSINESS LOANS
C&I		1,862		1,932		2,575		(70	)		(713	)
Total nonperforming loans	$	18,996	$	14,471	$	11,406	$	4,525		$	7,590

The increase in nonaccrual loans during the period was partly driven by a single commercial construction loan, which remains in active development. Ongoing construction disbursements on this loan contributed to a $2.6 million increase from the prior quarter and a $4.3 million increase compared to the same period last year. Increases in consumer loan delinquencies also contributed to the overall rise in nonaccrual loans between the periods.

CRITICIZED LOANS	June 30,		March 31,		June 30,		Linked			Prior Year
(Dollars in thousands)	2025		2025		2024		Quarter			Quarter
CRE LOANS	Amount		Amount		Amount		$ Change			$ Change
CRE	$	2,046	$	2,040	$	3,926	$	6		$	(1,880	)
Commercial and speculative construction and development		9,083		6,487		4,737		2,596			4,346
Total CRE loans		11,129		8,527		8,663		2,602			2,466

RESIDENTIAL REAL ESTATE LOANS
One-to-four-family (excludes HFS)		4,383		3,728		2,854		655			1,529
Home equity		251		252		156		(1	)		95
Total residential real estate loans		4,634		3,980		3,010		654			1,624

CONSUMER LOANS
Indirect home improvement		3,365		2,821		2,319		544			1,046
Marine		567		649		327		(82	)		240
Other consumer		13		1		6		12			7
Total consumer loans		3,945		3,471		2,652		474			1,293

COMMERCIAL BUSINESS LOANS
C&I		5,220		7,524		9,954		(2,304	)		(4,734	)
Total criticized loans	$	24,928	$	23,502	$	24,279	$	1,426		$	649

Operating Results

Net interest income increased $1.7 million to $32.1 million for the three months ended June 30, 2025, from $30.4 million for the three months ended June 30, 2024, primarily due to an increase in total interest income of $2.8 million, partially offset by an increase in interest expense of $1.1 million. The $2.8 million increase in total interest income was primarily due to an increase of $2.6 million in interest income on loans receivable, including fees, primarily as a result of net loan growth. The $1.1 million increase in total interest expense was primarily the result of higher average balances of deposits and borrowings to fund asset growth.

For the six months ended June 30, 2025, net interest income increased $2.3 million to $63.1 million, from $60.7 million for the six months ended June 30, 2024, with a $4.7 million increase in total interest income, partially offset by a $2.3 million increase in interest expense for the same reasons mentioned above.

NIM (annualized) increased one basis point to 4.30% for the three months ended June 30, 2025, from 4.29% for the same period in the prior year and increased four basis points from 4.27% to 4.31% for the six months ended June 30, 2025. The change in NIM for the three and six months ended June 30, 2025, compared to the same period in 2024, reflects the increased yields on interest-earning assets, as a result of loan growth and repricing activity. The improvement also reflects a favorable shift in the asset mix and disciplined management of deposit and funding costs.

The average total cost of funds, including noninterest-bearing checking, increased one basis point to 2.39% for the three months ended June 30, 2025, from 2.38% for the three months ended June 30, 2024. This increase was predominantly due to higher average balances in borrowings. The average cost of funds increased eight basis points to 2.38% for the six months ended June 30, 2025, from 2.30% for the six months ended June 30, 2024, primarily for the same reason noted above as well as growth in the deposit mix from the prior year.

For the three and six months ended June 30, 2025, the provision for credit losses on loans was $2.0 million and $3.6 million, compared to $1.1 million and $2.5 million for the three and six months ended June 30, 2024, respectively. The provision for credit losses on loans reflects net loan growth and an increase in net charge-off activity.

During the three months ended June 30, 2025, net charge-offs decreased $63,000 to $1.2 million, compared to the same period the prior year. During the six months ended June 30, 2025, net charge-offs increased $184,000, to $2.9 million, compared to $2.7 million during the six months ended June 30, 2024. The increase was primarily due to a $1.2 million increase in net charge-offs on indirect home improvement loans, partially offset by a $693,000 decrease in net charge-offs on commercial business loans and a $271,000 decrease in net charge-offs on marine loans. Management attributes the increase in net charge-offs for the current six month period to continued volatile economic conditions.

Total noninterest income decreased $698,000 to $5.2 million for the three months ended June 30, 2025, from $5.9 million for the three months ended June 30, 2024. The decrease primarily reflects a $491,000 decrease in gain on sale of loans, primarily due to a decrease of loans available for sale, a $156,000 decrease in service charges and fee income and a $151,000 decrease in gain on sale of investment securities due to no sales activity in the current quarter compared to the same period last year. Total noninterest income decreased $683,000, to $10.3 million, for the six months ended June 30, 2025, from $11.0 million for the six months ended June 30, 2024. This decrease was primarily the result of a $629,000 decrease in gain on sale of loans, a $464,000 decrease in service charges and fee income, and a net decrease of $368,000 from no activity in gain on sales of MSRs and loss on sale of investment securities compared to an $8.2 million net gain on sale of MSRs, offset by the $7.8 million loss on sale of investment securities that occurred in the first half of 2024. These decreases in total noninterest income were partially offset by a $755,000 increase in other noninterest income as result of sales of nonmarketable equity securities at a $312,000 gain, bank owned life insurance proceeds of $195,000, and a $101,000 increase in brokered loans fees.

Total noninterest expense was $25.5 million for the three months ended June 30, 2025, compared to $23.9 million for the three months ended June 30, 2024. The $1.6 million increase was primarily due to a $710,000 increase in salaries and benefits, primarily due to competitive wage adjustments, a $305,000 increase in operations expense, and a $267,000 increase in professional and board fees. Total noninterest expense increased $3.2 million to $50.6 million for the six months ended June 30, 2025, compared to $47.4 million for the six months ended June 30, 2024. Increases during the six month period ended June 30, 2025, compared to the same period last year included $1.7 million in salaries and benefits, $742,000 in operations expense, and $531,000 in professional and board fees.

About FS Bancorp

FS Bancorp, Inc., a Washington corporation, is the holding company for 1st Security Bank of Washington. The Bank offers a range of loan and deposit services primarily to small- and middle-market businesses and individuals in Washington and Oregon. It operates through 27 bank branches, one headquarters office that provides loans and deposit services, and loan production offices in various suburban communities in the greater Puget Sound area, the Kennewick-Pasco-Richland metropolitan area of Washington, also known as the Tri-Cities, and in Vancouver, Washington. Additionally, the Bank services home mortgage customers across the Northwest, focusing on markets in Washington State including the Puget Sound, Tri-Cities, and Vancouver.

Forward-Looking Statements

When used in this press release and in other documents filed with or furnished to the Securities and Exchange Commission (the “SEC”), in press releases or other public stockholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases “believe,” “will,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially from those currently expected or projected in these forward-looking statements. Factors that could cause the Company’s actual results to differ materially from those described in the forward-looking statements, include but are not limited to, the following: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels; labor shortages, the effects of inflation, recessionary pressures or slowing economic growth; changes in interest rates and the duration of such changes, including actions by the Federal Reserve, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and monetary and fiscal policy responses thereto and their impact on consumer and business behavior; geopolitical developments and international conflicts including but not limited to tensions or instability in Eastern Europe, the Middle east, and Asia, or the imposition of new or increased tariffs and trade restrictions, which may disrupt financial markets, global supply chains, energy prices, or economic activity in specific industry sectors; the effects of a federal government shutdown, debt ceiling standoff, or other fiscal policy uncertainty; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; adverse changes in the securities markets, the Company’s ability to execute its plans to grow its residential construction lending, mortgage banking, and warehouse lending operations, and the geographic expansion of its indirect home improvement lending; challenges arising from expanding into new geographic markets, products, or services; secondary market conditions for loans and the Company’s ability to originate loans for sale and sell loans in the secondary market; volatility in the mortgage industry; fluctuations in deposits; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; the ability to adapt to rapid technological changes, including advancements in artificial intelligence, digital banking, and cybersecurity; legislation or regulatory changes, including but not limited to shifts in capital requirements, banking regulation, tax laws, or consumer protection laws; vulnerabilities in information systems or third-party service providers, including disruptions, breaches, or attacks; environmental, social and governance goals; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, domestic political unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other reports filed with or furnished to the SEC which are available on its website at www.fsbwa.com and on the SEC’s website at www.sec.gov.

Any of the forward-looking statements that the Company makes in this press release and in the other public statements are based upon management’s beliefs and assumptions at the time they are made and may turn out to be incorrect because of the inaccurate assumptions the Company might make, because of the factors illustrated above or because of other factors that cannot be foreseen by the Company. Therefore, these factors should be considered in evaluating the forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake and specifically disclaims any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.


FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited)

										Linked			Prior Year
	June 30,			March 31,			June 30,			Quarter			Quarter
ASSETS	2025			2025			2024			% Change			% Change
Cash and due from banks	$	15,168		$	18,657		$	20,005			(19	)		(24	)
Interest-bearing deposits at other financial institutions		18,027			44,084			13,006			(59	)		39
Total cash and cash equivalents		33,195			62,741			33,011			(47	)		1
Certificates of deposit at other financial institutions		248			1,234			12,707			(80	)		(98	)
Securities available-for-sale, at fair value		302,692			291,133			221,182			4			37
Securities held-to-maturity, net		31,562			10,434			8,455			202			273
Loans held for sale, at fair value		53,630			31,038			53,811			73			—
Loans receivable, net		2,582,272			2,501,117			2,457,184			3			5
Accrued interest receivable		14,270			14,406			13,792			(1	)		3
Premises and equipment, net		30,098			29,451			29,999			2			—
Operating lease right-of-use		7,969			4,979			5,784			60			38
Federal Home Loan Bank stock, at cost		11,579			5,256			10,322			120			12
Deferred tax asset, net		7,782			7,009			4,590			11			70
Bank owned life insurance (“BOLI”), net		38,262			38,778			38,201			(1	)		—
MSRs, held at the lower of cost or fair value		8,652			8,926			9,352			(3	)		(7	)
Goodwill		3,592			3,592			3,592			—			—
Core deposit intangible, net		12,071			12,879			15,483			(6	)		(22	)
Other assets		38,139			43,105			23,912			(12	)		59
TOTAL ASSETS	$	3,176,013		$	3,066,078		$	2,941,377			4			8
LIABILITIES
Deposits:
Noninterest-bearing accounts	$	654,069		$	676,706		$	623,349			(3	)		5
Interest-bearing accounts		1,899,306			1,938,445			1,759,454			(2	)		8
Total deposits		2,553,375			2,615,151			2,382,803			(2	)		7
Borrowings		234,305			68,805			181,895			241			29
Subordinated notes:
Principal amount		50,000			50,000			50,000			—			—
Unamortized debt issuance costs		(373	)		(389	)		(439	)		(4	)		(15	)
Total subordinated notes less unamortized debt issuance costs		49,627			49,611			49,561			—			—
Operating lease liability		8,138			5,149			5,979			58			36
Other liabilities		33,365			28,522			37,113			17			(10	)
Total liabilities		2,878,810			2,767,238			2,657,351			4			8
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY
Preferred stock, $.01 par value; 5,000,000 shares authorized; none issued or outstanding		—			—			—			—			—
Common stock, $.01 par value; 45,000,000 shares authorized; 7,618,543 shares issued and outstanding at June 30, 2025, 7,742,907 at March 31, 2025, and 7,742,607 at June 30, 2024		76			77			77			(1	)		(1	)
Additional paid-in capital		48,418			52,806			55,834			(8	)		(13	)
Retained earnings		268,509			262,945			243,651			2			10
Accumulated other comprehensive loss, net of tax		(19,800	)		(16,988	)		(15,536	)		17			27
Total stockholders’ equity		297,203			298,840			284,026			(1	)		5
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,176,013		$	3,066,078		$	2,941,377			4			8


FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited)

	Three Months Ended								Linked			Prior Year
	June 30,		March 31,			June 30,			Quarter			Quarter
INTEREST INCOME	2025		2025			2024			% Change			% Change
Loans receivable, including fees	$	45,038	$	43,303		$	42,406			4			6
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions		3,665		3,485			3,534			5			4
Total interest and dividend income		48,703		46,788			45,940			4			6
INTEREST EXPENSE
Deposits		14,520		13,058			13,252			11			10
Borrowings		1,585		2,263			1,801			(30	)		(12	)
Subordinated notes		486		485			486			—			—
Total interest expense		16,591		15,806			15,539			5			7
NET INTEREST INCOME		32,112		30,982			30,401			4			6
PROVISION FOR CREDIT LOSSES		2,021		1,592			1,077			27			88
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		30,091		29,390			29,324			2			3
NONINTEREST INCOME
Service charges and fee income		2,323		2,244			2,479			4			(6	)
Gain on sale of loans		1,972		1,700			2,463			16			(20	)
Gain on sale of investment securities, net		—		—			151			NM			NM
Earnings on cash surrender value of BOLI		254		250			242			2			5
Other noninterest income		621		932			533			(33	)		17
Total noninterest income		5,170		5,126			5,868			1			(12	)
NONINTEREST EXPENSE
Salaries and benefits		14,088		14,533			13,378			(3	)		5
Operations		3,824		3,445			3,519			11			9
Occupancy		1,780		1,717			1,669			4			7
Data processing		2,137		2,045			2,058			4			4
Loan costs		719		548			653			31			10
Professional and board fees		1,155		1,186			888			(3	)		30
FDIC insurance		554		538			450			3			23
Marketing and advertising		398		221			377			80			6
Amortization of core deposit intangible		809		831			919			(3	)		(12	)
Impairment (recovery) of servicing rights		38		(9	)		(54	)		(522	)		(170	)
Total noninterest expense		25,502		25,055			23,857			2			7
INCOME BEFORE PROVISION FOR INCOME TAXES		9,759		9,461			11,335			3			(14	)
PROVISION FOR INCOME TAXES		2,031		1,440			2,376			41			(15	)
NET INCOME	$	7,728	$	8,021		$	8,959			(4	)		(14	)
Basic earnings per share	$	1.00	$	1.02		$	1.15			(2	)		(13	)
Diluted earnings per share	$	0.99	$	1.01		$	1.13			(2	)		(12	)


FS BANCORP, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share amounts) (Unaudited)

	Six Months Ended					Year
	June 30,		June 30,			Over Year
INTEREST INCOME	2025		2024			% Change
Loans receivable, including fees	$	88,340	$	83,403			6
Interest and dividends on investment securities, cash and cash equivalents, and certificates of deposit at other financial institutions		7,150		7,417			(4	)
Total interest and dividend income		95,490		90,820			5
INTEREST EXPENSE
Deposits		27,578		26,134			6
Borrowings		3,848		2,968			30
Subordinated note		971		971			—
Total interest expense		32,397		30,073			8
NET INTEREST INCOME		63,093		60,747			4
PROVISION FOR CREDIT LOSSES		3,613		2,476			46
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		59,480		58,271			2
NONINTEREST INCOME
Service charges and fee income		4,567		5,031			(9	)
Gain on sale of loans		3,672		4,301			(15	)
Gain on sale of MSRs		—		8,215			NM
Loss on sale of investment securities, net		—		(7,847	)		NM
Earnings on cash surrender value of BOLI		505		482			5
Other noninterest income		1,552		797			95
Total noninterest income		10,296		10,979			(6	)
NONINTEREST EXPENSE
Salaries and benefits		28,621		26,935			6
Operations		7,269		6,527			11
Occupancy		3,496		3,374			4
Data processing		4,182		4,016			4
Loan costs		1,267		1,238			2
Professional and board fees		2,342		1,811			29
FDIC insurance		1,092		982			11
Marketing and advertising		619		604			2
Amortization of core deposit intangible		1,639		1,860			(12	)
Impairment of servicing rights		29		39			(26	)
Total noninterest expense		50,556		47,386			7
INCOME BEFORE PROVISION FOR INCOME TAXES		19,220		21,864			(12	)
PROVISION FOR INCOME TAXES		3,471		4,508			(23	)
NET INCOME	$	15,749	$	17,356			(9	)
Basic earnings per share	$	2.02	$	2.23			(9	)
Diluted earnings per share	$	1.99	$	2.20			(10	)

KEY FINANCIAL RATIOS AND DATA (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			June 30,
PERFORMANCE RATIOS:	2025			2025			2024
Return on assets (ratio of net income to average total assets)⁽¹⁾		0.99	%		1.07	%		1.22	%
Return on equity (ratio of net income to average total stockholders’ equity)⁽¹⁾		10.29			10.80			12.72
Yield on average interest-earning assets⁽¹⁾		6.52			6.53			6.48
Average total cost of funds⁽¹⁾		2.39			2.38			2.38
Interest rate spread information – average during period		4.13			4.15			4.10
Net interest margin⁽¹⁾		4.30			4.32			4.29
Operating expense to average total assets⁽¹⁾		3.28			3.35			3.26
Average interest-earning assets to average interest-bearing liabilities⁽¹⁾		140.98			142.94			143.64
Efficiency ratio⁽²⁾		68.40			69.39			65.78
Common equity ratio (ratio of stockholders’ equity to total assets)		9.36			9.75			9.66
Tangible common equity ratio⁽³⁾		8.91			9.26			9.07

	For the Six Months Ended
	June 30,			June 30,
PERFORMANCE RATIOS:	2025			2024
Return on assets (ratio of net income to average total assets)		1.03	%		1.18	%
Return on equity (ratio of net income to average total stockholders’ equity)		10.55			12.51
Yield on average interest-earning assets		6.52			6.39
Average total cost of funds		2.38			2.30
Interest rate spread information – average during period		4.14			4.09
Net interest margin		4.31			4.27
Operating expense to average total assets		3.32			3.23
Average interest-earning assets to average interest-bearing liabilities		141.93			144.07
Efficiency ratio⁽²⁾		68.89			66.07

	June 30,			March 31,			June 30,
ASSET QUALITY RATIOS AND DATA:	2025			2025			2024
Nonperforming assets to total assets at end of period⁽⁴⁾		0.60	%		0.47	%		0.39	%
Nonperforming loans to total gross loans (excluding loans HFS)⁽⁵⁾		0.73			0.57			0.46
Allowance for credit losses – loans to nonperforming loans⁽⁵⁾		168.89			219.08			273.95
Allowance for credit losses – loans to total gross loans (excluding loans HFS)		1.23			1.25			1.26

	At or For the Three Months Ended
	June 30,			March 31,			June 30,
PER COMMON SHARE DATA:	2025			2025			2024
Basic earnings per share	$	1.00		$	1.02		$	1.15
Diluted earnings per share	$	0.99		$	1.01		$	1.13
Weighted average basic shares outstanding		7,580,576			7,695,320			7,688,246
Weighted average diluted shares outstanding		7,698,173			7,805,728			7,796,253
Common shares outstanding at end of period		7,515,480	⁽⁶⁾		7,639,844	⁽⁷⁾		7,644,463	⁽⁸⁾
Book value per share using common shares outstanding	$	39.55		$	39.12		$	37.15
Tangible book value per share using common shares outstanding⁽⁹⁾	$	37.46		$	36.96		$	34.66

__________________________

(1)		Annualized.
(2)		Total noninterest expense as a percentage of net interest income and total noninterest income.
(3)		Represents a non-GAAP financial measure. For a reconciliation to the most comparable GAAP financial measure, see “Non-GAAP Financial Measures” below.
(4)		Nonperforming assets consist of nonperforming loans (which include nonaccruing loans and accruing loans more than 90 days past due), foreclosed real estate and other repossessed assets.
(5)		Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due.
(6)		Common shares were calculated using shares outstanding of 7,618,543 at June 30, 2025, less 103,063 unvested restricted stock shares.
(7)		Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025, less 103,063 unvested restricted stock shares.
(8)		Common shares were calculated using shares outstanding of 7,742,607 at June 30, 2024, less 98,144 unvested restricted stock shares.
(9)		Tangible book value per share using outstanding common shares excludes intangible assets. This ratio represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” below.

(Dollars in thousands)	For the Three Months Ended June 30,				For the Six Months Ended June 30,				QTR Over QTR			YTD Over YTD
Average Balances	2025		2024		2025		2024		$ Change			$ Change
Assets
Loans receivable, net⁽¹⁾	$	2,612,959	$	2,511,326	$	2,586,598	$	2,487,964	$	101,633		$	98,634
Securities available-for-sale, at amortized cost		332,705		283,422		321,622		307,417		49,283			14,205
Securities held-to-maturity		21,401		8,500		15,063		8,500		12,901			6,563
Interest-bearing deposits and certificates of deposit at other financial institutions		8,775		41,613		10,353		50,563		(32,838	)		(40,210	)
FHLB stock, at cost		19,502		7,040		17,840		4,607		12,462			13,233
Total interest-earning assets		2,995,342		2,851,901		2,951,476		2,859,051		143,441			92,425
Noninterest-earning assets		121,018		95,930		123,191		94,138		25,088			29,053
Total assets	$	3,116,360	$	2,947,831	$	3,074,667	$	2,953,189	$	168,529		$	121,478
Liabilities
Interest-bearing deposit accounts	$	1,924,586	$	1,794,966	$	1,845,534	$	1,813,865	$	129,620		$	31,669
Borrowings		150,492		140,964		184,377		121,057		9,528			63,320
Subordinated notes		49,617		49,550		49,608		49,542		67			66
Total interest-bearing liabilities		2,124,695		1,985,480		2,079,519		1,984,464		139,215			95,055
Noninterest-bearing deposit accounts		657,820		637,345		660,805		647,214		20,475			13,591
Other noninterest-bearing liabilities		32,700		41,785		33,218		42,516		(9,085	)		(9,298	)
Total liabilities	$	2,815,215	$	2,664,610	$	2,773,542	$	2,674,194	$	150,605		$	99,348

__________________________

(1)		Includes loans HFS.

Non-GAAP Financial Measures:

In addition to financial results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release presents non-GAAP financial measures that include tangible book value per share, and tangible common equity ratio. Management believes that providing the Company’s tangible book value per share and tangible common equity ratio is consistent with the capital treatment utilized by the investment community, which excludes intangible assets from the calculation of risk-based capital ratios and facilitates comparison of the quality and composition of the Company’s capital over time and to its competitors. Where applicable, the Company has also presented comparable GAAP information.

These non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. They should not be considered in isolation or as a substitute for total stockholders’ equity or operating results determined in accordance with GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Reconciliation of the GAAP book value per share and common equity ratio and the non-GAAP tangible book value per share and tangible common equity ratio is presented below.

(Dollars in thousands, except share and per share amounts)	June 30,				March 31,				June 30,
Tangible Book Value Per Share:	2025				2025				2024
Stockholders’ equity (GAAP)	$	297,203			$	298,840			$	284,026
Less: goodwill and core deposit intangible, net		(15,663	)			(16,471	)			(19,075	)
Tangible common stockholders’ equity (non-GAAP)	$	281,540			$	282,369			$	264,951

Common shares outstanding at end of period		7,515,480		⁽¹⁾		7,639,844		⁽²⁾		7,644,463		⁽³⁾

Book value per share (GAAP)	$	39.55			$	39.12			$	37.15
Tangible book value per share (non-GAAP)	$	37.46			$	36.96			$	34.66

Tangible Common Equity Ratio:
Total assets (GAAP)	$	3,176,013			$	3,066,078			$	2,941,377
Less: goodwill and core deposit intangible assets		(15,663	)			(16,471	)			(19,075	)
Tangible assets (non-GAAP)	$	3,160,350			$	3,049,607			$	2,922,302

Common equity ratio (GAAP)		9.36		%		9.75		%		9.66		%
Tangible common equity ratio (non-GAAP)		8.91				9.26				9.07

_________________________

(1)		Common shares were calculated using shares outstanding of 7,618,543 at June 30, 2025, less 103,063 unvested restricted stock shares.
(2)		Common shares were calculated using shares outstanding of 7,742,907 at March 31, 2025, less 103,063 unvested restricted stock shares.
(3)		Common shares were calculated using shares outstanding of 7,742,607 at June 30, 2024, less 98,144 unvested restricted stock shares.

Contacts:
Joseph C. Adams,
Chief Executive Officer
Matthew D. Mullet,
President
Phillip D. Whittington,
Chief Financial Officer

(425) 771-5299
www.FSBWA.com

The MIL Network –

July 23, 2025

MIL-OSI: First Bank Announces Second Quarter 2025 Net Income of $10.2 Million

Source: GlobeNewswire (MIL-OSI)

HAMILTON, N.J. , July 22, 2025 (GLOBE NEWSWIRE) — First Bank (Nasdaq Global Market: FRBA) (“the Bank”) today announced results for the second quarter of 2025. Net income for the second quarter of 2025 was $10.2 million, or $0.41 per diluted share, compared to $11.1 million, or $0.44 per diluted share, for the second quarter of 2024. Return on average assets, return on average equity and return on average tangible equityⁱ for the second quarter of 2025 were 1.04%, 9.77% and 11.16%, respectively, compared to 1.23%, 11.52% and 13.40%, respectively, for the second quarter of 2024.

Second Quarter 2025 Performance Highlights:

Total loans of $3.33 billion at June 30, 2025 grew $91.2 million, or 11.3%, annualized, from the linked quarter ended March 31, 2025.
Total deposits were $3.17 billion at June 30, 2025, increasing $48.4 million, or 6.2% annualized, from the linked quarter ended March 31, 2025.
Net interest margin measured 3.65% for the second quarter of 2025, remaining stable compared to the first quarter of 2025.
Tangible book value per shareⁱⁱ grew to $14.87 at June 30, 2025, increasing 11.1%, annualized, from $14.47 at March 31, 2025.
Strong asset quality continued, with nonperforming assets decreasing to 0.40% of total assets at June 30, 2025, compared to 0.42% at March 31, 2025 and 0.56% at June 30, 2024.

“We are pleased to report growth in high-quality loans and deposits that continues to enhance our core earnings profile,” said Patrick L. Ryan, President and CEO of First Bank. “Our team’s robust performance in expanding commercial and industrial (“C&I”) loans and non-interest bearing deposits during the first half of 2025 demonstrates effective execution of our strategy to grow deep middle market commercial relationships. We have achieved substantial organic growth in our primary areas of focus while maintaining a stable net interest margin, solid asset quality, and an efficiency ratio that remained below 60% for the 24th consecutive quarter. These successes positioned First Bank to deliver an 11.1% annualized increase in tangible book value per share during the second quarter.”

Mr. Ryan added, “We anticipate our pace of loan growth will likely moderate in the second half of 2025 as we continue to prioritize relationship-building and profitability over volume amid continued competition in the deposit market. With a focus on continuing to maximize our risk-adjusted returns on shareholders’ equity, we expect to realize additional benefits from the prudent management of our capital, such as the reduced debt costs afforded by our recent subordinated debt issuance, and by delivering enhanced returns to our shareholders through share buybacks. Furthermore, we remain committed to proactive investments designed to scale our business and achieve top quartile profitability relative to our peers.”

Income Statement

In the second quarter of 2025, the Bank’s net interest income increased to $34.0 million, growing $3.5 million, or 11.4%, compared to the same period in 2024. The increase was primarily driven by an increase of $3.6 million in interest income, reflecting higher average loan balances, which outpaced the $140,000 increase in interest expense. Net interest income increased $1.9 million, or 6.0%, over the linked quarter of 2025. This increase was primarily driven by a $3.4 million increase in interest income, primarily due to higher average loan balances and yields, partially offset by an increase of $1.5 million in interest expense, primarily resulting from higher average borrowings during the second quarter of 2025.

The Bank’s tax equivalent net interest margin measured 3.65% for the second quarter of 2025, increasing by three basis points from 3.62% for the prior year quarter, and remaining stable as compared to the linked quarter ended March 31, 2025. The modest improvement from the prior year quarter was driven by an improved interest rate spread, reflecting declines in average rates on deposits and borrowings which outpaced the reduction in average rates on earning assets. The Bank’s net interest margin remained stable as compared to the linked quarter primarily due to a slight increase in average rates on loans and a slight decrease in average rate on deposits, offset by the increased cost on subordinated debt. The Bank’s tax equivalent net interest margin includes the impact of amortization and accretion of premiums and discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions. The net impact of amortization of premiums and accretion of discounts from fair value measurements of assets acquired and liabilities assumed in acquisitions was a $2.7 million increase in net interest income during the second quarter of 2025, compared to $2.8 million for the quarter ended March 31, 2025.

The Bank recorded a credit loss expense totaling $2.6 million during the second quarter of 2025, compared to credit loss expense totaling $1.5 million for the first quarter of 2025 and $63,000 for the second quarter of 2024. The increased credit loss expense for the second quarter of 2025 is primarily due to the Bank’s loan growth during the quarter, and to a lesser extent, slight increases in net charge-offs and specific reserves. The Bank’s credit loss expense for the second quarter of 2024 reflected the Bank’s strong and stable asset quality and modest loan growth during the quarter.

In the second quarter of 2025, the Bank recorded non-interest income totaling $2.7 million, compared to $689,000 during the same period in 2024 and $2.0 million during the first quarter of 2025. Non-interest income increased from both periods primarily due to higher loan fee income and a $397,000 gain on the sale of a corporate facility acquired through Malvern acquisition. Additionally, during the second quarter of 2024, the Bank recorded approximately $900,000 in net realized losses on the sale of certain loans as part of its balance sheet repositioning initiatives taken following its acquisition of Malvern Bank in 2023.

Non-interest expense for the second quarter of 2025 was $20.9 million, an increase of $2.9 million, or 16.2%, compared to $18.0 million for the prior year quarter. Higher non-interest expense was largely due to an increase of $1.1 million in salaries and employee benefits related to a larger employee base and $863,000 in one-time executive severance payments, a $429,000 increase in other expense primarily due to a settlement loss of $220,000 relating to a letter of credit commitment acquired through the Malvern Bank acquisition and other miscellaneous increases related to the Bank’s significant growth over the last twelve months, and $268,000 in higher occupancy and equipment costs due to ongoing branch network optimization initiatives and new branch locations added over the past year.

On a linked quarter basis, non-interest expense increased $483,000 from $20.4 million for the first quarter of 2025. The linked quarter growth primarily reflects increases of $841,000 in salaries and employee benefits costs primarily related to the aforementioned executive severance payments and settlement loss during the second quarter. This was partially offset by a decrease in other real estate owned (“OREO”) expense due to an $815,000 impairment of an OREO asset recorded during the linked quarter and the subsequent $34,000 gain on the sale of that property during second quarter 2025.

Income tax expense for the three months ended June 30, 2025 was $3.0 million with an effective tax rate of 22.9%, compared to $2.1 million with an effective tax rate of 16.2% for the second quarter of 2024. The effective tax rate for the second quarter of 2024 was lower due to the recognition of a $1.1 million tax benefit associated with the enactment of the New Jersey Corporate Transit Fee during that period and the related revaluation of the Bank’s deferred tax assets. Income tax expense for the six months ended June 30, 2025 was $5.8 million with an effective tax rate of 22.8%. We anticipate our future effective tax rate will be relatively stable and should not be significantly impacted by any recent legislative tax changes.

On July 4, 2025, subsequent to the end of the Company’s second fiscal quarter, the one big beautiful bill (“OBBB”) was enacted into law. The legislation includes a number of significant tax-related provisions, including changes affecting corporate tax incentives, international tax provisions, and various business credits and deductions. Pursuant to ASC 740, Income Taxes, the Company will recognize the effects of the OBBB in the third fiscal quarter of 2025, the period in which the legislation was enacted. The Company is currently evaluating the potential impact of the OBBB on its financial statements and, based on its preliminary assessment, does not expect the legislation to have a material impact.

Balance Sheet

The Bank reported total assets of $4.02 billion as of June 30, 2025, an increase of $403.6 million, or 11.2%, from $3.62 billion at June 30, 2024. Total loans increased $329.3 million, or 11.0%, to $3.33 billion at June 30, 2025 compared to $3.00 billion at June 30, 2024. The increase reflects strong organic loan growth, particularly in the C&I and owner-occupied commercial real estate portfolios.

Total assets increased $239.0 million, or 6.3%, from December 31, 2024 to June 30, 2025. Total loans as of June 30, 2025 increased $183.0 million, or 5.8%, from $3.14 billion at December 31, 2024, reflecting strong organic loan growth, particularly in the C&I and owner-occupied commercial real estate portfolios. The Bank’s cash and cash equivalents increased by $73.0 million, or 26.8%, compared to December 31, 2024, as management continued to maintain adequate on-balance sheet liquidity.

The Bank reported total deposits of $3.17 billion as of June 30, 2025, an increase of $200.6 million, or 6.8%, from $2.97 billion at June 30, 2024. Deposit growth was primarily due to our team’s success in attracting new deposit relationships while also maintaining existing balances amid heightened industry-wide pricing competition. Total deposits as of June 30, 2025 increased by $112.3 million, or 3.7%, from $3.06 billion at December 31, 2024, due to a combination of in-market commercial and consumer balances, offset somewhat by a decline in government related deposit balances. Compared to December 31, 2024, non-interest bearing demand deposits increased by $70.9 million to comprise 18.6% of total deposits, up from 17.0%. Over the same period, interest-bearing demand deposits decreased by $75.2 million to comprise 17.5% of total deposits at June 30, 2025, down from 20.6% at December 31, 2024. Time deposits expanded by $73.4 million, or 10.3%, during the first half of 2025.

During the six months ended June 30, 2025, stockholders’ equity increased by $13.2 million, or 3.2%, primarily due to net income, partially offset by dividends and share repurchases.

As of June 30, 2025, the Bank continued to exceed all regulatory capital requirements to be considered well-capitalized. The tangible stockholders’ equity to tangible assets ratioⁱⁱⁱ measured 9.34% as of June 30, 2025 compared to 9.56% at December 31, 2024. The decline from December 31, 2024, was primarily due to the asset growth during the period.

Asset Quality

First Bank’s asset quality metrics remained favorable during the second quarter of 2025. Total nonperforming assets declined from $17.3 million at December 31, 2024 to $16.0 million at June 30, 2025, primarily due to the sale of the Bank’s OREO asset during the second quarter of 2025, partially offset by the addition of nonperforming loans. Total nonperforming loans increased from $11.7 million at December 31, 2024 to $16.0 million at June 30, 2025.

The Bank recorded net charge-offs of $796,000 during the second quarter of 2025, compared to net recoveries of $15,000 in the first quarter of 2025 and net charge-offs of $175,000 in the second quarter of 2024. The allowance for credit losses on loans as a percentage of total loans measured 1.23% at June 30, 2025, compared to 1.21% at both March 31, 2025 and June 30, 2024.

Liquidity and Borrowings

Management believes the Bank’s current liquidity position, coupled with our various contingent funding sources, provides the Bank with a strong liquidity base and a diverse source of funding options. The Bank’s cash and cash equivalents increased by $56.8 million, or 19.7%, compared to March 31, 2025, ensuring adequate on-balance sheet liquidity. Borrowings increased by $44.9 million compared to March 31, 2025, as the Bank utilized Federal Home Loan Bank (“FHLB”) advances to support loan growth, while continuing to maintain adequate available borrowing capacity at the FHLB.

Subordinated Debt Issuance

On June 18, 2025, the Bank announced the closing of a $35.0 million private placement of fixed-to-floating rate subordinated notes with a maturity date of June 30, 2035 and a fixed rate of interest of 7.125% per annum for the first five years. Thereafter, the notes will pay interest at a floating rate, reset quarterly, equal to the then current three-month Secured Overnight Financing Rate (“SOFR”) plus 343 basis points. The notes may be redeemed at the option of the Bank, without penalty, on or after June 30, 2030. The Bank intends to use the proceeds of this issuance to redeem the Bank’s $30.0 million fixed-to-floating rate subordinated notes due June 1, 2030 (the “2020 notes”) on September 1, 2025, as well as for general corporate purposes. Previously, the 2020 notes carried a fixed rate of 5.50% per annum. On June 1, 2025, the 2020 notes began repricing quarterly at a rate equal to the current three-month term SOFR rate plus 538 basis points. The 2020 notes repriced to a rate of 9.704% per annum on June 1, 2025. The notes have been structured to qualify as Tier 2 capital for regulatory purposes.

Cash Dividend Declared

On July 15, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.06 per share to common stockholders of record at the close of business on August 8, 2025, payable on August 22, 2025.

Share Repurchase Program

During the second quarter of 2025 the Bank repurchased 193,185 shares of common stock at an average price of $14.71 per share, under the share repurchase program authorized in October 2024. Through June 30, 2025, 543,185 shares have been repurchased from the current share repurchase plan with a total cost of $8.0 million or $14.81 per share on average. The share repurchase program provides for the repurchase of up to 1.0 million shares of First Bank common stock with an aggregate repurchase amount of up to $16.0 million. The share repurchase program will expire on September 30, 2025.

Conference Call and Earnings Release Supplement

Additional details on the quarterly results and the Bank are included in the attached earnings release supplement. http://ml.globenewswire.com/Resource/Download/5917a538-bdcd-4a25-b364-99fd7d36addb

First Bank will host its earnings call on Wednesday, July 23, 2025 at 9:00 AM Eastern Time. The direct dial toll free number for the live call is 1-800-715-9871 and the access code is 3909613. For those unable to participate in the call, a replay will be available by dialing 1-800-770-2030 (access code 3909613) from one hour after the end of the conference call until October 21, 2025. Replay information will also be available on First Bank’s website at www.firstbanknj.com under the “About Us” tab. Click on “Investor Relations” to access the replay of the conference call.

About First Bank

First Bank is a New Jersey state-chartered bank with 27 full-service branches in Cinnaminson, Delanco, Denville, Ewing, Fairfield, Flemington, Hamilton, Lawrence, Monroe, Morristown, Pennington, Randolph, Somerset, Summit, Trenton and Williamstown, New Jersey; Coventry, Devon, Doylestown, Lionville, Malvern, Media, Paoli, Trevose, Warminster and West Chester, Pennsylvania; and Palm Beach, Florida. With $4.02 billion in assets as of June 30, 2025, First Bank offers a full range of deposit and loan products to individuals and businesses throughout the New York City to Philadelphia corridor. First Bank’s common stock is listed on the Nasdaq Global Market under the symbol “FRBA.”

Forward Looking Statements

This press release contains certain forward-looking statements, either express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding First Bank’s future financial performance, business and growth strategy, projected plans and objectives, and related transactions, integration of acquired businesses, ability to recognize anticipated operational efficiencies, and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that impact economic trends, and any such variations may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions, current expectations, estimates and projections about First Bank, any of which may change over time and some of which may be beyond First Bank’s control. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. Further, certain factors that could affect our future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: whether First Bank can: successfully implement its growth strategy, including identifying acquisition targets and consummating suitable acquisitions, integrate acquired entities and realize anticipated efficiencies, sustain its internal growth rate, and provide competitive products and services that appeal to its customers and target markets; difficult market conditions and unfavorable economic trends in the United States generally, and particularly in the market areas in which First Bank operates and in which its loans are concentrated, including the effects of declines in housing market values; the impact of public health emergencies, on First Bank, its operations and its customers and employees; an increase in unemployment levels and slowdowns in economic growth; First Bank’s level of nonperforming assets and the costs associated with resolving any problem loans including litigation and other costs; changes in market interest rates may increase funding costs and reduce earning asset yields thus reducing margin; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of First Bank’s investment securities portfolio; the extensive federal and state regulation, supervision and examination governing almost every aspect of First Bank’s operations, including changes in regulations affecting financial institutions and expenses associated with complying with such regulations; uncertainties in tax estimates and valuations, including due to changes in state and federal tax law; First Bank’s ability to comply with applicable capital and liquidity requirements, including First Bank’s ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; and possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies, and similar organizations. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Forward-Looking Statements” and “Risk Factors” in First Bank’s Annual Report on Form 10-K and any updates to those risk factors set forth in First Bank’s proxy statement, subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if First Bank’s underlying assumptions prove to be incorrect, actual results may differ materially from what First Bank anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All forward-looking statements expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that First Bank or persons acting on First Bank’s behalf may issue.

This press release contains “non-GAAP” financial measures, which management uses in its analysis of First Bank’s performance. Management believes these non-GAAP financial measures allow for better comparability of period to period operating performance. Additionally, First Bank believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. A reconciliation of the non-GAAP measures used in this presentation to the most directly comparable GAAP measures is provided in the accompanying financial tables.

ⁱ Return on average tangible equity is a non-GAAP financial measure and is calculated by dividing net income by average tangible equity (average equity minus average goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱ Tangible book value per share is a non-GAAP financial measure and is calculated by dividing common shares outstanding by tangible equity (equity minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.

ⁱⁱⁱ Tangible stockholders’ equity to tangible assets ratio is a non-GAAP financial measure and is calculated by dividing tangible equity (equity minus goodwill and other intangible assets) by tangible assets (total assets minus goodwill and other intangible assets). For a reconciliation of this non-GAAP financial measure, along with the other non-GAAP financial measures in this press release, to their comparable GAAP measures, see the financial reconciliations at the end of this press release.

FIRST BANK CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data, unaudited)

	June 30, 2025		December 31, 2024
Assets
Cash and due from banks	$	35,860	$	18,252
Restricted cash		9,900		14,270
Interest bearing deposits with banks		299,131		239,392
Cash and cash equivalents		344,891		271,914
Interest bearing time deposits with banks		747		743
Investment securities available for sale, at fair value (amortized cost of $86,666 and $84,083, respectively)		81,891		77,413
Equity securities, at fair value		1,904		1,870
Investment securities held to maturity, net of allowance for credit losses of $203 and $206, respectively (fair value of $41,941 and $42,770, respectively)		45,749		47,123
Restricted investment in bank stocks		18,009		14,333
Other investments		13,556		11,612
Loans held for sale		2,127		–
Loans, net of deferred fees and costs		3,327,288		3,144,266
Less: Allowance for credit losses		(40,877)		(37,773)
Net loans		3,286,411		3,106,493
Premises and equipment, net		17,987		21,351
Other real estate owned, net		–		5,637
Accrued interest receivable		14,505		14,267
Bank-owned life insurance		86,980		85,553
Goodwill		44,166		44,166
Other intangible assets, net		7,860		8,827
Deferred income taxes, net		25,032		25,528
Other assets		27,520		43,516
Total assets	$	4,019,335	$	3,780,346

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	590,209	$	519,320
Interest bearing deposits		2,578,004		2,536,576
Total deposits		3,168,213		3,055,896
Borrowings		326,802		246,933
Subordinated debentures		64,343		29,954
Accrued interest payable		4,443		3,820
Other liabilities		33,155		34,587
Total liabilities		3,596,956		3,371,190
Stockholders’ Equity:
Preferred stock, par value $2 per share; 10,000,000 shares authorized; no shares issued and outstanding		–		–
Common stock, par value $5 per share; 40,000,000 shares authorized; 27,630,039 shares issued and 24,905,790 shares outstanding and 27,375,439 shares issued and 25,100,829 shares outstanding, respectively		136,640		135,495
Additional paid-in capital		125,290		124,524
Retained earnings		193,395		176,779
Accumulated other comprehensive loss		(3,525)		(4,925)
Treasury stock, 2,724,249 and 2,274,610 shares, respectively		(29,421)		(22,717)
Total stockholders’ equity		422,379		409,156
Total liabilities and stockholders’ equity	$	4,019,335	$	3,780,346

FIRST BANK CONSOLIDATED STATEMENTS OF INCOME (in thousands, except for share data, unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Interest and Dividend Income
Investment securities—taxable	$	1,246	$	1,278	$	2,434	$	2,460
Investment securities—tax-exempt		41		36		92		74
Interest bearing deposits with banks, Federal funds sold and other		3,487		3,482		6,484		6,507
Loans, including fees		54,394		50,763		105,946		100,082
Total interest and dividend income		59,168		55,559		114,956		109,123

Interest Expense
Deposits		21,276		22,386		42,120		43,172
Borrowings		3,256		2,193		5,668		4,309
Subordinated debentures		627		440		1,067		784
Total interest expense		25,159		25,019		48,855		48,265
Net interest income		34,009		30,540		66,101		60,858
Credit loss expense (benefit)		2,558		63		4,102		(635)
Net interest income after credit loss expense (benefit)		31,451		30,477		61,999		61,493

Non-Interest Income
Service fees on deposit accounts		382		350		738		694
Loan fees		568		117		894		219
Income from bank-owned life insurance		723		609		1,516		1,394
Gains on sale of loans, net		75		(900)		104		(671)
Gains on recovery of acquired loans		100		56		124		174
Gain on sale of other assets		397		–		397		–
Other non-interest income		457		457		900		843
Total non-interest income		2,702		689		4,673		2,653

Non-Interest Expense
Salaries and employee benefits		11,959		9,968		23,077		20,006
Occupancy and equipment		2,350		2,082		4,814		4,108
Legal fees		279		240		647		556
Other professional fees		924		929		1,650		1,685
Regulatory fees		684		640		1,368		1,242
Directors’ fees		260		270		542		512
Data processing		893		749		1,698		1,555
Marketing and advertising		503		377		902		673
Travel and entertainment		251		285		487		529
Insurance		233		251		447		495
Other real estate owned expense, net		69		129		989		217
Other expense		2,462		2,033		4,630		4,185
Total non-interest expense		20,867		17,953		41,251		35,763
Income Before Income Taxes		13,286		13,213		25,421		28,383
Income tax expense		3,047		2,140		5,801		4,798
Net Income	$	10,239	$	11,073	$	19,620	$	23,585

Basic earnings per common share	$	0.41	$	0.44	$	0.78	$	0.94
Diluted earnings per common share	$	0.41	$	0.44	$	0.77	$	0.93

Basic weighted average common shares outstanding		25,029,164		25,129,199		25,073,368		25,084,558
Diluted weighted average common shares outstanding		25,234,120		25,258,785		25,335,743		25,228,888

FIRST BANK AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES (dollars in thousands, unaudited)

	Three Months Ended June 30,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Rate (5)			Balance		Interest		Rate (5)
Interest earning assets
Investment securities ^{(1) (2)}	$	135,094	$	1,295		3.84	%	$	146,289	$	1,321		3.63	%
Loans ⁽³⁾		3,296,031		54,394		6.62	%		2,997,892		50,763		6.81	%
Interest bearing deposits with banks,
Federal funds sold and other		276,488		3,079		4.47	%		224,503		3,101		5.56	%
Restricted investment in bank stocks		17,960		276		6.16	%		11,178		243		8.74	%
Other investments		15,402		132		3.44	%		12,136		138		4.57	%
Total interest earning assets ⁽²⁾		3,740,975		59,176		6.34	%		3,391,998		55,566		6.59	%
Allowance for credit losses		(39,507)							(36,784)
Non-interest earning assets		251,475							263,698
Total assets	$	3,952,943						$	3,618,912

Interest bearing liabilities
Interest bearing demand deposits	$	606,838	$	3,701		2.45	%	$	591,222	$	3,813		2.59	%
Money market deposits		1,064,363		8,917		3.36	%		1,061,593		10,559		4.00	%
Savings deposits		140,301		694		1.98	%		158,158		619		1.57	%
Time deposits		781,299		7,964		4.09	%		678,197		7,395		4.39	%
Total interest bearing deposits		2,592,801		21,276		3.29	%		2,489,170		22,386		3.62	%
Borrowings		319,494		3,256		4.09	%		171,533		2,193		5.14	%
Subordinated debentures		34,966		627		7.17	%		29,880		440		5.89	%
Total interest bearing liabilities		2,947,261		25,159		3.42	%		2,690,583		25,019		3.74	%
Non-interest bearing deposits		548,279							497,205
Other liabilities		36,960							44,480
Stockholders’ equity		420,443							386,644
Total liabilities and stockholders’ equity	$	3,952,943						$	3,618,912
Net interest income/interest rate spread ⁽²⁾				34,017		2.92	%				30,547		2.85	%
Net interest margin ^{(2) (4)}						3.65	%						3.62	%
Tax equivalent adjustment ⁽²⁾				(8)							(7)
Net interest income			$	34,009						$	30,540

(1) Average balance of investment securities available for sale is based on amortized cost.

(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.

(3) Average balances of loans include loans on nonaccrual status.

(4) Net interest income divided by average total interest earning assets.

(5) Annualized.

FIRST BANK AVERAGE BALANCE SHEETS WITH INTEREST AND AVERAGE RATES (dollars in thousands, unaudited)

	Six Months Ended June 30,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Rate (5)			Balance		Interest		Rate (5)
Interest earning assets
Investment securities^{(1) (2)}	$	134,686	$	2,545		3.81	%	$	146,719	$	2,549		3.49	%
Loans⁽³⁾		3,233,747		105,946		6.61	%		2,988,707		100,082		6.73	%
Interest bearing deposits with banks,
Federal funds sold and other		255,378		5,654		4.46	%		213,831		5,811		5.46	%
Restricted investment in bank stocks		16,059		576		7.23	%		10,800		442		8.23	%
Other investments		14,731		254		3.48	%		12,003		254		4.26	%
Total interest earning assets⁽²⁾		3,654,601		114,975		6.34	%		3,372,060		109,138		6.51	%
Allowance for credit losses		(38,847)							(37,196)
Non-interest earning assets		256,261							262,465
Total assets	$	3,872,015						$	3,597,329

Interest bearing liabilities
Interest bearing demand deposits	$	625,682	$	7,728		2.49	%	$	605,081	$	7,479		2.49	%
Money market deposits		1,054,742		17,548		3.36	%		1,038,250		20,348		3.94	%
Savings deposits		141,395		1,344		1.92	%		160,135		1,193		1.50	%
Time deposits		749,765		15,500		4.17	%		674,872		14,152		4.22	%
Total interest bearing deposits		2,571,584		42,120		3.30	%		2,478,338		43,172		3.50	%
Borrowings		277,245		5,668		4.12	%		169,337		4,309		5.12	%
Subordinated debentures		32,478		1,067		6.57	%		36,175		784		4.33	%
Total interest bearing liabilities		2,881,307		48,855		3.42	%		2,683,850		48,265		3.62	%
Non-interest bearing deposits		534,877							489,353
Other liabilities		38,755							42,534
Stockholders’ equity		417,076							381,592
Total liabilities and stockholders’ equity	$	3,872,015						$	3,597,329
Net interest income/interest rate spread⁽²⁾				66,120		2.92	%				60,873		2.89	%
Net interest margin^{(2) (4)}						3.65	%						3.63	%
Tax equivalent adjustment⁽²⁾				(19)							(15)
Net interest income			$	66,101						$	60,858

(1) Average balance of investment securities available for sale is based on amortized cost.
(2) Interest and average rates are presented on a tax equivalent basis using a federal income tax rate of 21%.
(3) Average balances of loans include loans on nonaccrual status.
(4) Net interest income divided by average total interest earning assets.
(5) Annualized.

FIRST BANK QUARTERLY FINANCIAL HIGHLIGHTS (in thousands, except for share and employee data, unaudited)

	As of or For the Quarter Ended
	6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024
EARNINGS
Net interest income	$	34,009	$	32,092	$	31,594	$	30,094	$	30,540
Credit loss expense		2,558		1,544		234		1,579		63
Non-interest income		2,702		1,971		2,176		2,479		689
Non-interest expense		20,867		20,384		19,124		18,644		17,953
Income tax expense		3,047		2,754		3,915		4,188		2,140
Net income		10,239		9,381		10,497		8,162		11,073

PERFORMANCE RATIOS
Return on average assets⁽¹⁾		1.04%		1.00%		1.10%		0.88%		1.23%
Return on average equity⁽¹⁾		9.77%		9.20%		10.27%		8.15%		11.52%
Return on average tangible equity^{(1) (2)}		11.16%		10.54%		11.82%		9.42%		13.40%
Net interest margin^{(1) (3)}		3.65%		3.65%		3.54%		3.48%		3.62%
Yield on loans⁽¹⁾		6.62%		6.59%		6.62%		6.73%		6.81%
Total cost of deposits⁽¹⁾		2.72%		2.75%		2.89%		3.06%		3.01%
Efficiency ratio⁽²⁾		56.24%		57.65%		56.98%		58.49%		55.88%

SHARE DATA
Common shares outstanding		24,905,790		25,045,612		25,100,829		25,186,920		25,144,983
Basic earnings per share	$	0.41	$	0.37	$	0.42	$	0.32	$	0.44
Diluted earnings per share		0.41		0.37		0.41		0.32		0.44
Book value per share		16.96		16.57		16.30		15.96		15.61
Tangible book value per share⁽²⁾		14.87		14.47		14.19		13.84		13.46

MARKET DATA
Market value per share	$	15.47	$	14.81	$	14.07	$	15.20	$	12.74
Market value / Tangible book value⁽²⁾		104.03%		102.35%		99.16%		109.83%		94.65%
Market capitalization	$	385,293	$	370,926	$	353,169	$	382,841	$	320,347

CAPITAL & LIQUIDITY
Stockholders’ equity / assets		10.51%		10.69%		10.82%		10.70%		10.86%
Tangible stockholders’ equity / tangible assets⁽²⁾		9.34%		9.47%		9.56%		9.41%		9.50%
Loans / deposits		105.02%		103.73%		102.89%		101.23%		101.02%

ASSET QUALITY
Net charge-offs (recoveries)	$	796	$	(15)	$	(155)	$	386	$	175
Nonperforming loans		15,978		11,584		11,677		12,014		14,227
Nonperforming assets		15,978		16,406		17,314		17,651		20,226
Net charge offs (recoveries)/ average loans⁽¹⁾		0.10%		(0.00%)		(0.02%)		0.05%		0.02%
Nonperforming loans / total loans		0.48%		0.36%		0.37%		0.39%		0.47%
Nonperforming assets / total assets		0.40%		0.42%		0.46%		0.47%		0.56%
Allowance for credit losses on loans / total loans		1.23%		1.21%		1.20%		1.21%		1.21%
Allowance for credit losses on loans / nonperforming loans		255.83%		338.60%		323.48%		311.59%		254.81%

OTHER DATA
Total assets	$	4,019,335	$	3,880,759	$	3,780,346	$	3,757,653	$	3,615,731
Total loans		3,327,288		3,236,039		3,144,266		3,087,488		2,998,029
Total deposits		3,168,213		3,119,794		3,055,896		3,050,070		2,967,634
Total stockholders’ equity		422,379		414,915		409,156		402,070		392,489
Number of full-time equivalent employees		335		315		318		313		294

(1) Annualized.
(2) Non-U.S. GAAP financial measure that we believe provides management and investors with information that is useful in understanding our financial performance and condition. See accompanying table, “Non-U.S. GAAP Financial Measures,” for calculation and reconciliation.
(3) Tax equivalent using a federal income tax rate of 21%.

FIRST BANK QUARTERLY FINANCIAL HIGHLIGHTS (dollars in thousands, unaudited)

	As of the Quarter Ended
	6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024
LOAN COMPOSITION
Commercial and industrial	$	706,849	$	651,690	$	576,625	$	546,541	$	530,996
Commercial real estate:
Owner-occupied		707,766		694,113		671,357		688,988		647,625
Investor		1,192,716		1,160,549		1,181,684		1,170,508		1,143,954
Construction and development		161,361		200,262		205,096		193,460		190,108
Multi-family		309,189		308,217		287,843		267,861		270,238
Total commercial real estate		2,371,032		2,363,141		2,345,980		2,320,817		2,251,925
Residential real estate:
Residential mortgage and first lien home equity loans		160,935		142,298		142,769		144,081		144,978
Home equity–second lien loans and revolving lines of credit		62,738		52,438		51,020		49,763		46,882
Total residential real estate		223,673		194,736		193,789		193,844		191,860
Consumer and other		29,248		29,760		31,324		29,518		26,321
Total loans prior to deferred loan fees and costs		3,330,802		3,239,327		3,147,718		3,090,720		3,001,102
Net deferred loan fees and costs		(3,514)		(3,288)		(3,452)		(3,232)		(3,073)
Total loans	$	3,327,288	$	3,236,039	$	3,144,266	$	3,087,488	$	2,998,029

LOAN MIX
Commercial and industrial		21.2%		20.1%		18.3%		17.7%		17.7%
Commercial real estate:
Owner-occupied		21.3%		21.5%		21.4%		22.3%		22.3%
Investor		35.8%		35.9%		37.6%		37.9%		37.9%
Construction and development		4.8%		6.2%		6.5%		6.3%		6.3%
Multi-family		9.3%		9.5%		9.1%		8.7%		8.7%
Total commercial real estate		71.3%		73.1%		74.6%		75.2%		75.2%
Residential real estate:
Residential mortgage and first lien home equity loans		4.8%		4.4%		4.6%		4.7%		4.7%
Home equity–second lien loans and revolving lines of credit		1.9%		1.6%		1.6%		1.6%		1.6%
Total residential real estate		6.7%		6.0%		6.2%		6.3%		6.3%
Consumer and other		0.9%		0.9%		1.0%		0.9%		0.9%
Net deferred loan fees and costs		(0.1%)		(0.1%)		(0.1%)		(0.1%)		(0.1%)
Total loans		100.0%		100.0%		100.0%		100.0%		100.0%

FIRST BANK QUARTERLY FINANCIAL HIGHLIGHTS (dollars in thousands, unaudited)

	As of the Quarter Ended
	6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024
DEPOSIT COMPOSITION
Non-interest bearing demand deposits	$	590,209	$	535,584	$	519,320	$	519,079	$	499,765
Interest bearing demand deposits		553,909		629,974		629,099		597,802		574,515
Money market and savings deposits		1,241,277		1,197,517		1,198,039		1,235,637		1,199,382
Time deposits		782,818		756,719		709,438		697,552		693,972
Total Deposits	$	3,168,213	$	3,119,794	$	3,055,896	$	3,050,070	$	2,967,634

DEPOSIT MIX
Non-interest bearing demand deposits		18.6%		17.2%		17.0%		17.0%		16.8%
Interest bearing demand deposits		17.5%		20.2%		20.6%		19.6%		19.4%
Money market and savings deposits		39.2%		38.4%		39.2%		40.5%		40.4%
Time deposits		24.7%		24.2%		23.2%		22.9%		23.4%
Total Deposits		100.0%		100.0%		100.0%		100.0%		100.0%

FIRST BANK NON-GAAP FINANCIAL MEASURES (in thousands, except for share data, unaudited)

	As of or For the Quarter Ended
	6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024
Return on Average Tangible Equity
Net income (numerator)	$	10,239	$	9,381	$	10,497	$	8,162	$	11,073

Average stockholders’ equity	$	420,443	$	413,672	$	406,579	$	398,535	$	386,644
Less: Average Goodwill and other intangible assets, net		52,301		52,805		53,278		53,823		54,347
Average Tangible stockholders’ equity (denominator)	$	368,142	$	360,867	$	353,301	$	344,712	$	332,297

Return on average tangible equity⁽¹⁾		11.16%		10.54%		11.82%		9.42%		13.40%

Tangible Book Value Per Share
Stockholders’ equity	$	422,379	$	414,915	$	409,156	$	402,070	$	392,489
Less: Goodwill and other intangible assets, net		52,026		52,507		52,993		53,484		54,026
Tangible stockholders’ equity (numerator)	$	370,353	$	362,408	$	356,163	$	348,586	$	338,463

Common shares outstanding (denominator)		24,905,790		25,045,612		25,100,829		25,186,920		25,144,983

Tangible book value per share	$	14.87	$	14.47	$	14.19	$	13.84	$	13.46

Tangible Equity / Tangible Assets
Stockholders’ equity	$	422,379	$	414,915	$	409,156	$	402,070	$	392,489
Less: Goodwill and other intangible assets, net		52,026		52,507		52,993		53,484		54,026
Tangible stockholders’ equity (numerator)	$	370,353	$	362,408	$	356,163	$	348,586	$	338,463

Total assets	$	4,019,335	$	3,880,759	$	3,780,346	$	3,757,653	$	3,615,731
Less: Goodwill and other intangible assets, net		52,026		52,507		52,993		53,484		54,026
Tangible total assets (denominator)	$	3,967,309	$	3,828,252	$	3,727,353	$	3,704,169	$	3,561,705

Tangible stockholders’ equity / tangible assets		9.34%		9.47%		9.56%		9.41%		9.50%

Efficiency Ratio
Non-interest expense	$	20,867	$	20,384	$	19,124	$	18,644	$	17,953
Less: Other real estate owned write-down		–		815		–		362		–
Adjusted non-interest expense (numerator)	$	20,867	$	19,569	$	19,124	$	18,282	$	17,953

Net interest income	$	34,009	$	32,092	$	31,594	$	30,094	$	30,540
Non-interest income		2,702		1,971		2,176		2,479		689
Total revenue		36,711		34,063		33,770		32,573		31,229
Add: Losses on sale of investment securities, net		–		–		–		555		–
(Subtract) Add: (Gains) losses on sale of loans, net		(75)		(29)		(38)		(135)		900
(Subtract): Gain on sale of other assets		(397)		–		–		–		–
Less: Bank Owned Life Insurance Incentive		–		(88)		(168)		(1,116)		–
Add: Executive Officer Severance Benefits		863		–		–		–		–
Adjusted total revenue (denominator)	$	37,102	$	33,946	$	33,564	$	31,877	$	32,129

Efficiency ratio		56.24%		57.65%		56.98%		57.35%		55.88%

(1) Annualized.

The MIL Network –

July 23, 2025

MIL-OSI: National Bank Holdings Corporation Announces Second Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

DENVER, July 22, 2025 (GLOBE NEWSWIRE) — National Bank Holdings Corporation (the “Company”) reported:


	For the quarter⁽¹⁾									For the six months ended⁽¹⁾
	2Q25			1Q25			2Q24			2025			2024
Net income ($000’s)	$	34,022		$	24,231		$	26,135		$	58,253		$	57,526
Earnings per share – diluted	$	0.88		$	0.63		$	0.68		$	1.51		$	1.50
Return on average assets		1.38	%		0.99	%		1.06	%		1.19	%		1.17	%
Return on average tangible assets⁽²⁾		1.49	%		1.09	%		1.17	%		1.29	%		1.28	%
Return on average equity		10.15	%		7.42	%		8.46	%		8.80	%		9.37	%
Return on average tangible common equity⁽²⁾		14.18	%		10.64	%		12.44	%		12.44	%		13.77	%

(1	)	Ratios are annualized.
(2	)	See non-GAAP reconciliations below.

In announcing these results, Chief Executive Officer Tim Laney shared, “We delivered quarterly earnings of $0.88 of earnings per diluted share and a return on average tangible common equity of 14.18%. Year-over-year fully taxable equivalent pre-provision net revenues grew by 19.9% highlighted by a strong net interest margin of 3.95%. We remain diligent in monitoring our loan book and maintaining a disciplined approach to extending credit, which resulted in just 5 basis points of annualized net charge-offs during the quarter.”

Mr. Laney added, “Our solid results continue to generate meaningful capital growth with a Common Equity Tier 1 capital ratio of 14.2%. Our excess capital position provides us with optionality to act on a variety of growth opportunities. We are pleased with the recent launch of 2UniFi, an innovative financial ecosystem that we believe can change the way business owners and operators access the U.S. banking system. 2UniFi is built to empower business entrepreneurs with banking and business tools that save time, reduce stress, and help them grow their business.”

Second Quarter 2025 Results
(All comparisons refer to the first quarter of 2025, except as noted)

Net income increased $9.8 million, or 40.4%, to $34.0 million or $0.88 per diluted share, compared to $24.2 million or $0.63 per diluted share. Fully taxable equivalent pre-provision net revenue increased $1.5 million, or 14.3% annualized, to $43.5 million. The return on average tangible assets increased 40 basis points to 1.49%, and the return on average tangible common equity increased 3.54% to 14.18%. Compared to the second quarter of 2024, fully taxable equivalent pre-provision net revenue increased $7.2 million or 19.9%.

Net Interest Income
Fully taxable equivalent net interest income increased $0.7 million to $89.3 million due to one additional day during the second quarter. The fully taxable equivalent net interest margin widened two basis points to 3.95%, driven by a three basis point increase in earning asset yields, partially offset by an increase in the cost of funds.

Loans
Loans totaled $7.5 billion at June 30, 2025, compared to $7.6 billion. We generated quarterly loan fundings of $322.7 million, led by commercial loan fundings of $219.6 million. The second quarter’s weighted average rate on new loans at the time of origination was 7.4%, compared to a weighted average yield of 6.5% on our loan portfolio.

Asset Quality and Provision for Credit Losses
The Company recorded no provision expense for credit losses, compared to $10.2 million in the previous quarter. Annualized net charge-offs totaled 0.05% of average total loans, compared to 0.80%. Non-performing loans totaled 0.45% of total loans at June 30, 2025, consistent with the previous quarter, and non-performing assets decreased one basis point to 0.45% of total loans and OREO at June 30, 2025. The allowance for credit losses as a percentage of loans increased one basis point to 1.19% at June 30, 2025.

Deposits
Average total deposits decreased $58.8 million to $8.2 billion during the second quarter 2025, and average transaction deposits (defined as total deposits less time deposits) decreased $85.3 million to $7.1 billion. The loan to deposit ratio totaled 90.5% at June 30, 2025, compared to 90.8%. The mix of transaction deposits to total deposits was 87.0% at June 30, 2025, compared to 87.4%.

Non-Interest Income
Non-interest income increased $1.7 million, or 11.0%, to $17.1 million during the second quarter. Income from partnership investments increased $0.6 million, bank card fees increased $0.5 million, SBA loan gains on sale increased $0.2 million, and the sales of two previously consolidated banking center properties drove a $1.3 million gain. Mortgage banking income decreased $0.8 million.

Non-Interest Expense
Non-interest expense totaled $62.9 million, compared to $62.0 million in the first quarter, which benefited from the $1.9 million payroll tax credits realized in the first quarter. Excluding the impact from the first quarter’s payroll tax credits, non-interest expense decreased $1.0 million due to our disciplined expense management. The second quarter’s non-interest expense includes $0.3 million of non-recurring restructuring charges as a result of expense reduction actions executed during the quarter. The fully taxable equivalent efficiency ratio improved 42 basis points to 57.3%, excluding other intangible assets amortization.

Income tax expense totaled $7.5 million, compared to $5.6 million in the previous quarter, as a result of higher pre-tax income in the second quarter. The effective tax rate was 18.1%, compared to 18.8% in the first quarter.

Capital
Capital ratios continue to be well in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 11.18%, and the common equity tier 1 capital ratio totaled 14.17% at June 30, 2025. Shareholders’ equity increased $23.2 million to $1.4 billion at June 30, 2025, primarily driven by $22.5 million of growth in retained earnings from net income after covering the quarter’s dividend, and a $4.1 million improvement in accumulated other comprehensive loss due to changes in the interest rate environment.

Common book value per share increased $0.65 to $35.55 at June 30, 2025. Tangible common book value per share increased $0.70 to $26.64 driven by the quarter’s earnings after covering the quarterly dividend, and a $0.11 improvement in accumulated other comprehensive loss.

Year-Over-Year Review
(All comparisons refer to the first six months of 2024, except as noted)

Net income increased $0.7 million to $58.3 million or $1.51 per diluted share, compared to $57.5 million or $1.50 per diluted share. Fully taxable equivalent pre-provision net revenue increased $8.6 million to $85.4 million. The return on average tangible assets increased one basis point to 1.29%, and the return on average tangible common equity was 12.44%, compared to 13.77%.

Fully taxable equivalent net interest income increased $6.9 million to $177.9 million. The fully taxable equivalent net interest margin widened 17 basis points to 3.94%, driven by a 21 basis point decrease in the cost of funds, partially offset by a three basis point decrease in earning asset yields.

Loans outstanding totaled $7.5 billion as of June 30, 2025, compared to $7.7 billion. New loan fundings over the trailing twelve months totaled $1.4 billion, led by commercial fundings of $928.3 million.

The Company recorded $10.2 million of provision expense for credit losses, compared to $2.8 million in the same period prior year. Annualized net charge-offs totaled 0.43% of average total loans, compared to 0.11% net charge-offs in the same period prior year. Non-performing loans totaled 0.45% of total loans at June 30, 2025, compared to 0.34% in the prior year. Non-performing assets totaled 0.45% of total loans and OREO at June 30, 2025, compared to 0.36% in the prior year. The allowance for credit losses as a percentage of loans totaled 1.19% at June 30, 2025, compared to 1.25% at June 30, 2024.

Average deposits totaled $8.2 billion, compared to $8.3 billion in the same period prior year, and average transaction deposits totaled $7.2 billion, compared to $7.3 billion in the same period prior year. The mix of transaction deposits to total deposits was 87.0% at June 30, 2025, compared to 87.8%.

Non-interest income increased $0.7 million to $32.4 million primarily due to a $0.7 million increase in the gains on sales of previously consolidated banking center properties and a $0.4 million increase in trust income.

Non-interest expense decreased $1.0 million to $124.9 million as a result of disciplined expense management and payroll tax credits realized during the first quarter 2025.

Income tax expense totaled $13.1 million, consistent with the same period prior year. The effective tax rate was 18.4%, compared to 18.6% in the same period prior year.

Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, July 23, 2025. Interested parties may listen to this call by dialing (877) 400-0505 using the participant passcode of 9935135 and asking for the NBHC Q2 2025 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at www.nationalbankholdings.com by visiting the investor relations area.

About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise, delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 85 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.

For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com, or connect with any of our brands on LinkedIn.

About Non-GAAP Financial Measures
Certain of the financial measures and ratios we present, including “tangible assets,” “return on average tangible assets,” “tangible common equity,” “return on average tangible common equity,” “tangible common book value per share,” “tangible common equity to tangible assets,” “non-interest expense excluding other intangible assets amortization,” “efficiency ratio excluding other intangible assets amortization,” “net income excluding the impact of other intangible assets amortization expense, after tax,” “pre-provision net revenue” and “fully taxable equivalent” metrics, are supplemental measures that are not required by, or are not presented in accordance with, U.S. generally accepted accounting principles (GAAP). We refer to these financial measures and ratios as “non-GAAP financial measures.” We consider the use of select non-GAAP financial measures and ratios to be useful for financial and operational decision making and useful in evaluating period-to-period comparisons. We believe that these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenditures or assets that we believe are not indicative of our primary business operating results or by presenting certain metrics on a fully taxable equivalent basis. We believe that management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, analyzing and comparing past, present and future periods.

These non-GAAP financial measures should not be considered a substitute for financial information presented in accordance with GAAP and you should not rely on non-GAAP financial measures alone as measures of our performance. The non-GAAP financial measures we present may differ from non-GAAP financial measures used by our peers or other companies. We compensate for these differences by providing the equivalent GAAP measures whenever we present the non-GAAP financial measures and by including a reconciliation of the impact of the components adjusted for in the non-GAAP financial measure so that both measures and the individual components may be considered when analyzing our performance. A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements do not discuss historical facts but instead relate to expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance. Forward-looking statements are generally identified by words such as “anticipate,” “believe,” “can,” “would,” “should,” “could,” “may,” “predict,” “seek,” “potential,” “will,” “estimate,” “target,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “intend,” “goal,” “focus,” “maintains,” “future,” “ultimately,” “likely,” “ensure,” “strategy,” “objective,” and similar words or phrases. These statements are only predictions and involve estimates, known and unknown risks, assumptions and uncertainties. We have based these statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, liquidity, results of operations, business strategy and growth prospects. Forward-looking statements involve certain important risks, uncertainties and other factors, any of which could cause actual results to differ materially from those in such statements and, therefore, you are cautioned not to place undue reliance on such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to: business and economic conditions along with external events both generally and in the financial services industry; susceptibility to credit risk and fluctuations in the value of real estate and other collateral securing a significant portion of our loan portfolio, including with regards to real estate acquired through foreclosure, and the accuracy of appraisals related to such real estate; the allowance for credit losses and fair value adjustments may be insufficient to absorb losses in our loan portfolio; our ability to maintain sufficient liquidity to meet the requirements of deposit withdrawals and other business needs; changes impacting monetary supply and the businesses of our clients and counterparties, including levels of market interest rates, inflation, currency values, monetary and fiscal policies, and the volatility of trading markets; changes in the fair value of our investment securities and the ability of companies in which we invest to commercialize their technology or product concepts; the loss of certain executive officers and key personnel; any service interruptions, cyber incidents or other breaches relating to our technology systems, security systems or infrastructure or those of our third-party providers; the occurrence of fraud or other financial crimes within our business; competition from other financial institutions and financial services providers and the effects of disintermediation within the banking business including consolidation within the industry; changes to federal government lending programs like the Small Business Administration’s Preferred Lender Program and the Federal Housing Administration’s insurance programs, including the impact of a government shutdown of such programs; impairment of our mortgage servicing rights, disruption in the secondary market for mortgage loans, declines in real estate values, or being required to repurchase mortgage loans or reimburse investors; developments in technology, such as artificial intelligence, the success of our digital growth strategy, and our ability to incorporate innovative technologies in our business and provide products and services that satisfy our clients’ expectations for convenience and security; our ability to execute our organic growth and acquisition strategies; the accuracy of projected operating results for assets and businesses we acquire as well as our ability to drive organic loan growth to replace loans in our existing portfolio with comparable loans as loans are paid down; changes to federal, state and local laws and regulations along with executive orders applicable to our business, including tax laws; our ability to comply with and manage costs related to extensive government regulation and supervision, including current and future regulations affecting bank holding companies and depository institutions; the application of any increased assessment rates imposed by the Federal Deposit Insurance Corporation (“FDIC”); claims or legal action brought against us by third parties or government agencies; and other factors, risks, trends and uncertainties described elsewhere in our other filings with the Securities and Exchange Commission (the “SEC”). The forward-looking statements are made as of the date of this press release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.

Contacts:
Analysts/Institutional Investors:
Emily Gooden, Chief Accounting Officer and Investor Relations Director, (720) 554-6640, ir@nationalbankholdings.com
Nicole Van Denabeele, Chief Financial Officer, (720) 529-3370, ir@nationalbankholdings.com

Media:
Jody Soper, Chief Marketing Officer, (303) 784-5925, Jody.Soper@nbhbank.com

NATIONAL BANK HOLDINGS CORPORATION
FINANCIAL SUMMARY
Consolidated Statements of Operations (Unaudited)
(Dollars in thousands, except share and per share data)


	For the three months ended						For the six months ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2025		2025		2024		2025		2024
Total interest and dividend income	$	131,220	$	129,963	$	132,447	$	261,183	$	264,179
Total interest expense		43,811		43,272		48,873		87,083		96,575
Net interest income		87,409		86,691		83,574		174,100		167,604
Taxable equivalent adjustment		1,912		1,910		1,711		3,822		3,403
Net interest income FTE⁽¹⁾		89,321		88,601		85,285		177,922		171,007
Provision expense for credit losses		—		10,200		2,776		10,200		2,776
Net interest income after provision for credit losses FTE⁽¹⁾		89,321		78,401		82,509		167,722		168,231
Non-interest income:
Service charges		4,127		4,118		4,295		8,245		8,686
Bank card fees		4,732		4,194		4,882		8,926		9,460
Mortgage banking income		2,547		3,315		3,296		5,862		5,951
Other non-interest income		5,660		3,749		1,556		9,409		7,626
Total non-interest income		17,066		15,376		14,029		32,442		31,723
Non-interest expense:
Salaries and benefits		37,746		34,362		36,933		72,108		73,453
Occupancy and equipment		9,436		10,837		10,120		20,273		20,061
Professional fees		1,680		1,423		1,706		3,103		3,352
Data processing		4,452		4,401		4,117		8,853		8,183
Other non-interest expense		7,670		9,017		8,222		16,687		16,875
Other intangible assets amortization		1,947		1,977		1,977		3,924		3,985
Total non-interest expense		62,931		62,017		63,075		124,948		125,909

Income before income taxes FTE⁽¹⁾		43,456		31,760		33,463		75,216		74,045
Taxable equivalent adjustment		1,912		1,910		1,711		3,822		3,403
Income before income taxes		41,544		29,850		31,752		71,394		70,642
Income tax expense		7,522		5,619		5,617		13,141		13,116
Net income	$	34,022	$	24,231	$	26,135	$	58,253	$	57,526
Earnings per share – basic	$	0.89	$	0.63	$	0.68	$	1.52	$	1.51
Earnings per share – diluted		0.88		0.63		0.68		1.51		1.50
Common stock dividend		0.30		0.29		0.28		0.59		0.55


(1	)		Net interest income is presented on a GAAP basis and fully taxable equivalent (FTE) basis, as the Company believes this non-GAAP measure is the preferred industry measurement for this item. The FTE adjustment is for the tax benefit on certain tax exempt loans using the federal tax rate of 21% for each period presented.

NATIONAL BANK HOLDINGS CORPORATION
Consolidated Statements of Financial Condition (Unaudited)
(Dollars in thousands, except share and per share data)


	June 30, 2025			March 31, 2025			December 31, 2024			June 30, 2024
ASSETS
Cash and cash equivalents	$	296,483		$	246,298		$	127,848		$	144,993
Investment securities available-for-sale		631,947			634,376			527,547			691,076
Investment securities held-to-maturity		717,232			706,912			533,108			554,686
Non-marketable securities		81,124			76,203			76,462			72,987
Loans		7,486,918			7,646,296			7,751,143			7,722,153
Allowance for credit losses		(88,893	)		(90,192	)		(94,455	)		(96,457	)
Loans, net		7,398,025			7,556,104			7,656,688			7,625,696
Loans held for sale		20,784			11,885			24,495			18,787
Other real estate owned		291			615			662			1,526
Premises and equipment, net		209,414			204,567			196,773			177,456
Goodwill		306,043			306,043			306,043			306,043
Intangible assets, net		52,496			54,489			58,432			62,356
Other assets		284,890			301,378			299,635			315,245
Total assets	$	9,998,729		$	10,098,870		$	9,807,693		$	9,970,851
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Non-interest bearing demand deposits	$	2,168,574		$	2,215,313		$	2,213,685		$	2,229,432
Interest bearing demand deposits		1,240,698			1,337,905			1,411,860			1,420,942
Savings and money market		3,785,951			3,812,312			3,592,312			3,703,810
Total transaction deposits		7,195,223			7,365,530			7,217,857			7,354,184
Time deposits		1,074,261			1,058,677			1,020,036			1,022,741
Total deposits		8,269,484			8,424,207			8,237,893			8,376,925
Securities sold under agreements to repurchase		18,513			20,749			18,895			19,465
Long-term debt		54,385			54,588			54,511			54,356
Federal Home Loan Bank advances		185,000			80,000			50,000			35,000
Other liabilities		118,851			190,018			141,319			237,461
Total liabilities		8,646,233			8,769,562			8,502,618			8,723,207
Shareholders’ equity:
Common stock		515			515			515			515
Additional paid in capital		1,167,719			1,168,433			1,167,431			1,161,804
Retained earnings		544,428			521,939			508,864			469,630
Treasury stock		(304,254	)		(301,531	)		(301,694	)		(303,880	)
Accumulated other comprehensive loss, net of tax		(55,912	)		(60,048	)		(70,041	)		(80,425	)
Total shareholders’ equity		1,352,496			1,329,308			1,305,075			1,247,644
Total liabilities and shareholders’ equity	$	9,998,729		$	10,098,870		$	9,807,693		$	9,970,851
SHARE DATA
Average basic shares outstanding		38,075,896			38,068,455			38,327,964			38,210,869
Average diluted shares outstanding		38,151,810			38,229,869			38,565,164			38,372,777
Ending shares outstanding		38,045,622			38,094,105			38,054,482			37,899,453
Common book value per share	$	35.55		$	34.90		$	34.29		$	32.92
Tangible common book value per share⁽¹⁾(non-GAAP)		26.64			25.94			25.28			23.74
CAPITAL RATIOS
Average equity to average assets		13.62	%		13.35	%		13.10	%		12.57	%
Tangible common equity to tangible assets⁽¹⁾		10.49	%		10.13	%		10.16	%		9.35	%
Tier 1 leverage ratio		11.18	%		10.89	%		10.69	%		10.20	%
Common equity tier 1 risk-based capital ratio		14.17	%		13.61	%		13.20	%		12.41	%
Tier 1 risk-based capital ratio		14.17	%		13.61	%		13.20	%		12.41	%
Total risk-based capital ratio		16.07	%		15.49	%		15.11	%		14.32	%

(1

)

Represents a non-GAAP financial measure. See non-GAAP reconciliations below.

NATIONAL BANK HOLDINGS CORPORATION
Loan Portfolio
(Dollars in thousands)

Period End Loan Balances by Type


					June 30, 2025					June 30, 2025
					vs. March 31, 2025					vs. June 30, 2024
	June 30, 2025		March 31, 2025		% Change			June 30, 2024		% Change
Originated:
Commercial:
Commercial and industrial	$	1,829,984	$	1,871,301		(2.2	)%	$	1,906,095		(4.0	)%
Municipal and non-profit		1,125,330		1,116,724		0.8	%		1,063,706		5.8	%
Owner-occupied commercial real estate		1,051,964		1,026,692		2.5	%		921,122		14.2	%
Food and agribusiness		213,254		251,120		(15.1	)%		248,401		(14.1	)%
Total commercial		4,220,532		4,265,837		(1.1	)%		4,139,324		2.0	%
Commercial real estate non-owner occupied		1,118,730		1,136,176		(1.5	)%		1,116,424		0.2	%
Residential real estate		915,213		915,139		0.0	%		923,313		(0.9	)%
Consumer		12,050		11,955		0.8	%		14,385		(16.2	)%
Total originated		6,266,525		6,329,107		(1.0	)%		6,193,446		1.2	%

Acquired:
Commercial:
Commercial and industrial		100,545		105,493		(4.7	)%		124,104		(19.0	)%
Municipal and non-profit		265		271		(2.2	)%		288		(8.0	)%
Owner-occupied commercial real estate		188,745		198,339		(4.8	)%		232,890		(19.0	)%
Food and agribusiness		31,693		33,831		(6.3	)%		48,061		(34.1	)%
Total commercial		321,248		337,934		(4.9	)%		405,343		(20.7	)%
Commercial real estate non-owner occupied		601,890		659,680		(8.8	)%		752,040		(20.0	)%
Residential real estate		296,795		318,510		(6.8	)%		369,003		(19.6	)%
Consumer		460		1,065		(56.8	)%		2,321		(80.2	)%
Total acquired		1,220,393		1,317,189		(7.3	)%		1,528,707		(20.2	)%
Total loans	$	7,486,918	$	7,646,296		(2.1	)%	$	7,722,153		(3.0	)%

Loan Fundings⁽¹⁾


	Second quarter		First quarter		Fourth quarter		Third quarter		Second quarter
	2025		2025		2024		2024		2024
Commercial:
Commercial and industrial	$	133,402	$	108,594	$	146,600	$	93,711	$	241,910
Municipal and non-profit		34,393		12,506		49,175		35,677		28,785
Owner occupied commercial real estate		47,233		37,762		117,850		70,517		102,615
Food and agribusiness		4,576		1,338		15,796		19,205		11,040
Total commercial		219,604		160,200		329,421		219,110		384,350
Commercial real estate non-owner occupied		56,770		65,254		119,132		91,809		83,184
Residential real estate		44,470		29,300		30,750		47,322		36,124
Consumer		1,823		970		726		1,010		1,547
Total	$	322,667	$	255,724	$	480,029	$	359,251	$	505,205

(1

)

Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings under revolving lines of credit were $15,490, $21,752, $64,375, $16,302 and $19,281 for the periods noted in the table above, respectively.

NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)


	For the three months ended								For the three months ended								For the three months ended
	June 30, 2025								March 31, 2025								June 30, 2024
	Average					Average			Average					Average			Average					Average
	balance			Interest		rate			balance			Interest		rate			balance			Interest		rate
Interest earning assets:
Originated loans FTE⁽¹⁾⁽²⁾	$	6,289,154		$	102,399		6.53	%	$	6,335,931		$	102,221		6.54	%	$	6,074,199		$	101,794		6.74	%
Acquired loans		1,262,933			19,397		6.16	%		1,351,726			19,547		5.86	%		1,541,576			23,464		6.12	%
Loans held for sale		21,115			354		6.72	%		19,756			349		7.16	%		16,862			318		7.59	%
Investment securities available-for-sale		701,920			4,661		2.66	%		716,938			4,617		2.58	%		802,830			5,101		2.54	%
Investment securities held-to-maturity		713,178			5,173		2.90	%		635,961			4,120		2.59	%		564,818			2,419		1.71	%
Other securities		30,560			466		6.10	%		31,386			480		6.12	%		25,093			377		6.01	%
Interest earning deposits		57,634			682		4.75	%		48,206			539		4.53	%		92,388			685		2.98	%
Total interest earning assets FTE⁽²⁾	$	9,076,494		$	133,132		5.88	%	$	9,139,904		$	131,873		5.85	%	$	9,117,766		$	134,158		5.92	%
Cash and due from banks	$	79,131							$	77,237							$	100,165
Other assets		807,802								794,374								771,475
Allowance for credit losses		(90,292	)							(95,492	)							(97,741	)
Total assets	$	9,873,135							$	9,916,023							$	9,891,665
Interest bearing liabilities:
Interest bearing demand, savings and money market deposits	$	4,986,119		$	32,758		2.64	%	$	5,027,052		$	32,511		2.62	%	$	5,109,924		$	39,681		3.12	%
Time deposits		1,062,481			9,087		3.43	%		1,035,983			8,756		3.43	%		1,015,371			8,536		3.38	%
Federal Home Loan Bank advances		93,676			1,170		5.01	%		107,151			1,105		4.18	%		9,505			133		5.63	%
Other borrowings⁽³⁾		41,300			278		2.70	%		50,277			382		3.08	%		17,449			5		0.12	%
Long-term debt		54,574			518		3.81	%		54,539			518		3.85	%		54,307			518		3.84	%
Total interest bearing liabilities	$	6,238,150		$	43,811		2.82	%	$	6,275,002		$	43,272		2.80	%	$	6,206,556		$	48,873		3.17	%
Demand deposits	$	2,152,899							$	2,197,300							$	2,254,454
Other liabilities		137,319								119,806								187,499
Total liabilities		8,528,368								8,592,108								8,648,509
Shareholders’ equity		1,344,767								1,323,915								1,243,156
Total liabilities and shareholders’ equity	$	9,873,135							$	9,916,023							$	9,891,665
Net interest income FTE⁽²⁾				$	89,321							$	88,601							$	85,285
Interest rate spread FTE⁽²⁾							3.06	%							3.05	%							2.75	%
Net interest earning assets	$	2,838,344							$	2,864,902							$	2,911,210
Net interest margin FTE⁽²⁾							3.95	%							3.93	%							3.76	%
Average transaction deposits	$	7,139,018							$	7,224,352							$	7,364,378
Average total deposits		8,201,499								8,260,335								8,379,749
Ratio of average interest earning assets to average interest bearing liabilities		145.50	%							145.66	%							146.91	%

(1	)	Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
(2	)	Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,912, $1,910 and $1,711 for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.
(3	)	Other borrowings includes securities sold under agreements to repurchase and cash collateral received from counterparties in connection with derivative swap agreements.

NATIONAL BANK HOLDINGS CORPORATION
Summary of Net Interest Margin
(Dollars in thousands)


	For the six months ended June 30, 2025								For the six months ended June 30, 2024
	Average					Average			Average					Average
	balance			Interest		rate			balance			Interest		rate
Interest earning assets:
Originated loans FTE⁽¹⁾⁽²⁾	$	6,312,413		$	204,620		6.54	%	$	6,060,524		$	202,708		6.73	%
Acquired loans		1,307,084			38,944		6.01	%		1,576,548			47,753		6.09	%
Loans held for sale		20,439			703		6.94	%		14,440			543		7.56	%
Investment securities available-for-sale		709,387			9,278		2.62	%		776,999			9,204		2.37	%
Investment securities held-to-maturity		674,783			9,293		2.75	%		571,989			4,933		1.72	%
Other securities		30,971			946		6.11	%		30,065			993		6.61	%
Interest earning deposits		52,946			1,221		4.65	%		91,983			1,448		3.17	%
Total interest earning assets FTE⁽²⁾	$	9,108,023		$	265,005		5.87	%	$	9,122,548		$	267,582		5.90	%
Cash and due from banks	$	78,189							$	101,374
Other assets		801,127								763,853
Allowance for credit losses		(92,878	)							(97,812	)
Total assets	$	9,894,461							$	9,889,963
Interest bearing liabilities:
Interest bearing demand, savings and money market deposits	$	5,006,472		$	65,269		2.63	%	$	5,028,868		$	76,094		3.04	%
Time deposits		1,049,305			17,843		3.43	%		1,002,706			16,120		3.23	%
Federal Home Loan Bank advances		100,376			2,275		4.57	%		118,871			3,314		5.61	%
Other borrowings⁽³⁾		45,764			660		2.91	%		18,189			11		0.12	%
Long-term debt		54,557			1,036		3.83	%		54,268			1,036		3.84	%
Total interest bearing liabilities	$	6,256,474		$	87,083		2.81	%	$	6,222,902		$	96,575		3.12	%
Demand deposits	$	2,174,977							$	2,267,725
Other liabilities		128,611								164,617
Total liabilities		8,560,062								8,655,244
Shareholders’ equity		1,334,399								1,234,719
Total liabilities and shareholders’ equity	$	9,894,461							$	9,889,963
Net interest income FTE⁽²⁾				$	177,922							$	171,007
Interest rate spread FTE⁽²⁾							3.06	%							2.78	%
Net interest earning assets	$	2,851,549							$	2,899,646
Net interest margin FTE⁽²⁾							3.94	%							3.77	%
Average transaction deposits	$	7,181,449							$	7,296,593
Average total deposits		8,230,754								8,299,299
Ratio of average interest earning assets to average interest bearing liabilities		145.58	%							146.60	%

(1	)	Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
(2	)	Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $3,822 and $3,403 for the six months ended June 30, 2025 and June 30, 2024, respectively.
(3	)	Other borrowings includes securities sold under agreements to repurchase and cash collateral received from counterparties in connection with derivative swap agreements.

NATIONAL BANK HOLDINGS CORPORATION
Allowance for Credit Losses and Asset Quality
(Dollars in thousands)

Allowance for Credit Losses Analysis


	As of and for the three months ended
	June 30, 2025			March 31, 2025			June 30, 2024
Beginning allowance for credit losses	$	90,192		$	94,455		$	97,607
Charge-offs		(1,158	)		(15,251	)		(4,605	)
Recoveries		170			138			499
Provision (release) expense for credit losses		(311	)		10,850			2,956
Ending allowance for credit losses (“ACL”)	$	88,893		$	90,192		$	96,457
Ratio of annualized net charge-offs to average total loans during the period		0.05	%		0.80	%		0.22	%
Ratio of ACL to total loans outstanding at period end		1.19	%		1.18	%		1.25	%
Ratio of ACL to total non-performing loans at period end		266.66	%		260.52	%		370.18	%
Total loans	$	7,486,918		$	7,646,296		$	7,722,153
Average total loans during the period		7,530,783			7,660,974			7,582,506
Total non-performing loans		33,336			34,620			26,057

Past Due and Non-accrual Loans


	June 30, 2025			March 31, 2025			June 30, 2024
Loans 30-89 days past due and still accruing interest	$	13,923		$	17,003		$	27,159
Loans 90 days past due and still accruing interest		7,315			1,012			3,498
Non-accrual loans		33,336			34,620			26,057
Total past due and non-accrual loans	$	54,574		$	52,635		$	56,714
Total 90 days past due and still accruing interest and non-accrual loans to total loans		0.54	%		0.47	%		0.38	%

Asset Quality Data


	June 30, 2025			March 31, 2025			June 30, 2024
Non-performing loans	$	33,336		$	34,620		$	26,057
OREO		291			615			1,526
Total non-performing assets	$	33,627		$	35,235		$	27,583
Total non-performing loans to total loans		0.45	%		0.45	%		0.34	%
Total non-performing assets to total loans and OREO		0.45	%		0.46	%		0.36	%

NATIONAL BANK HOLDINGS CORPORATION
Key Metrics⁽¹⁾


	As of and for the three months ended									As of and for the six months ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2025			2025			2024			2025			2024
Return on average assets		1.38	%		0.99	%		1.06	%		1.19	%		1.17	%
Return on average tangible assets⁽²⁾		1.49	%		1.09	%		1.17	%		1.29	%		1.28	%
Return on average equity		10.15	%		7.42	%		8.46	%		8.80	%		9.37	%
Return on average tangible common equity⁽²⁾		14.18	%		10.64	%		12.44	%		12.44	%		13.77	%
Loan to deposit ratio (end of period)		90.54	%		90.77	%		92.18	%		90.54	%		92.18	%
Non-interest bearing deposits to total deposits (end of period)		26.22	%		26.30	%		26.61	%		26.22	%		26.61	%
Net interest margin⁽³⁾		3.86	%		3.85	%		3.69	%		3.85	%		3.69	%
Net interest margin FTE⁽²⁾⁽³⁾		3.95	%		3.93	%		3.76	%		3.94	%		3.77	%
Interest rate spread FTE⁽²⁾⁽⁴⁾		3.06	%		3.05	%		2.75	%		3.06	%		2.78	%
Yield on earning assets⁽⁵⁾		5.80	%		5.77	%		5.84	%		5.78	%		5.82	%
Yield on earning assets FTE⁽²⁾⁽⁵⁾		5.88	%		5.85	%		5.92	%		5.87	%		5.90	%
Cost of funds		2.09	%		2.07	%		2.32	%		2.08	%		2.29	%
Cost of deposits		2.05	%		2.03	%		2.31	%		2.04	%		2.23	%
Non-interest income to total revenue FTE⁽⁶⁾		16.04	%		14.79	%		14.13	%		15.42	%		15.65	%
Efficiency ratio		60.24	%		60.76	%		64.62	%		60.50	%		63.17	%
Efficiency ratio excluding other intangible assets amortization FTE⁽²⁾		57.32	%		57.74	%		61.52	%		57.53	%		60.14	%
Pre-provision net revenue	$	41,544		$	40,050		$	34,528		$	81,594		$	73,418
Pre-provision net revenue FTE⁽²⁾		43,456			41,960			36,239			85,416			76,821

Total Loans Asset Quality Data⁽⁷⁾⁽⁸⁾
Non-performing loans to total loans		0.45	%		0.45	%		0.34	%		0.45	%		0.34	%
Non-performing assets to total loans and OREO		0.45	%		0.46	%		0.36	%		0.45	%		0.36	%
Allowance for credit losses to total loans		1.19	%		1.18	%		1.25	%		1.19	%		1.25	%
Allowance for credit losses to non-performing loans		266.66	%		260.52	%		370.18	%		266.66	%		370.18	%
Net charge-offs to average loans		0.05	%		0.80	%		0.22	%		0.43	%		0.11	%

(1	)	Ratios are annualized.
(2	)	Ratio represents non-GAAP financial measure. See non-GAAP reconciliations below.
(3	)	Net interest margin represents net interest income, including accretion income on interest earning assets, as a percentage of average interest earning assets.
(4	)	Interest rate spread represents the difference between the weighted average yield on interest earning assets, including FTE income, and the weighted average cost of interest bearing liabilities. Ratio represents a non-GAAP financial measure.
(5	)	Interest earning assets include assets that earn interest/accretion or dividends. Any market value adjustments on investment securities or loans are excluded from interest earning assets.
(6	)	Non-interest income to total revenue represents non-interest income divided by the sum of net interest income FTE and non-interest income. Ratio represents a non-GAAP financial measure.
(7	)	Non-performing loans consist of non-accruing loans and modified loans on non-accrual.
(8	)	Total loans are net of unearned discounts and fees.

NATIONAL BANK HOLDINGS CORPORATION
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
(Dollars in thousands, except share and per share data)

Tangible Common Book Value Ratios


	June 30, 2025			March 31, 2025			December 31, 2024			June 30, 2024
Total shareholders’ equity	$	1,352,496		$	1,329,308		$	1,305,075		$	1,247,644
Less: goodwill and other intangible assets, net		(352,854	)		(354,800	)		(356,777	)		(360,732	)
Add: deferred tax liability related to goodwill		13,741			13,638			13,535			12,871
Tangible common equity (non-GAAP)	$	1,013,383		$	988,146		$	961,833		$	899,783

Total assets	$	9,998,729		$	10,098,870		$	9,807,693		$	9,970,851
Less: goodwill and other intangible assets, net		(352,854	)		(354,800	)		(356,777	)		(360,732	)
Add: deferred tax liability related to goodwill		13,741			13,638			13,535			12,871
Tangible assets (non-GAAP)	$	9,659,616		$	9,757,708		$	9,464,451		$	9,622,990

Tangible common equity to tangible assets calculations:
Total shareholders’ equity to total assets		13.53	%		13.16	%		13.31	%		12.51	%
Less: impact of goodwill and other intangible assets, net		(3.04	)%		(3.03	)%		(3.15	)%		(3.16	)%
Tangible common equity to tangible assets (non-GAAP)		10.49	%		10.13	%		10.16	%		9.35	%

Tangible common book value per share calculations:
Tangible common equity (non-GAAP)	$	1,013,383		$	988,146		$	961,833		$	899,783
Divided by: ending shares outstanding		38,045,622			38,094,105			38,054,482			37,899,453
Tangible common book value per share (non-GAAP)	$	26.64		$	25.94		$	25.28		$	23.74

NATIONAL BANK HOLDINGS CORPORATION
(Dollars in thousands, except share and per share data)
Return on Average Tangible Assets and Return on Average Tangible Equity


	As of and for the three months ended									As of and for the six months ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2025			2025			2024			2025			2024
Net income	$	34,022		$	24,231		$	26,135		$	58,253		$	57,526
Add: impact of other intangible assets amortization expense, after tax		1,492			1,516			1,516			3,006			3,055
Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP)	$	35,514		$	25,747		$	27,651		$	61,259		$	60,581

Average assets	$	9,873,135		$	9,916,023		$	9,891,665		$	9,894,461		$	9,889,963
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill		(340,330	)		(342,425	)		(349,030	)		(341,320	)		(350,040	)
Average tangible assets (non-GAAP)	$	9,532,805		$	9,573,598		$	9,542,635		$	9,553,141		$	9,539,923

Average shareholders’ equity	$	1,344,767		$	1,323,915		$	1,243,156		$	1,334,399		$	1,234,719
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill		(340,330	)		(342,425	)		(349,030	)		(341,320	)		(350,040	)
Average tangible common equity (non-GAAP)	$	1,004,437		$	981,490		$	894,126		$	993,079		$	884,679

Return on average assets		1.38	%		0.99	%		1.06	%		1.19	%		1.17	%
Return on average tangible assets (non-GAAP)		1.49	%		1.09	%		1.17	%		1.29	%		1.28	%
Return on average equity		10.15	%		7.42	%		8.46	%		8.80	%		9.37	%
Return on average tangible common equity (non-GAAP)		14.18	%		10.64	%		12.44	%		12.44	%		13.77	%

Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin


	As of and for the three months ended									As of and for the six months ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2025			2025			2024			2025			2024
Interest income	$	131,220		$	129,963		$	132,447		$	261,183		$	264,179
Add: impact of taxable equivalent adjustment		1,912			1,910			1,711			3,822			3,403
Interest income FTE (non-GAAP)	$	133,132		$	131,873		$	134,158		$	265,005		$	267,582

Net interest income	$	87,409		$	86,691		$	83,574		$	174,100		$	167,604
Add: impact of taxable equivalent adjustment		1,912			1,910			1,711			3,822			3,403
Net interest income FTE (non-GAAP)	$	89,321		$	88,601		$	85,285		$	177,922		$	171,007

Average earning assets	$	9,076,494		$	9,139,904		$	9,117,766		$	9,108,023		$	9,122,548
Yield on earning assets		5.80	%		5.77	%		5.84	%		5.78	%		5.82	%
Yield on earning assets FTE (non-GAAP)		5.88	%		5.85	%		5.92	%		5.87	%		5.90	%
Net interest margin		3.86	%		3.85	%		3.69	%		3.85	%		3.69	%
Net interest margin FTE (non-GAAP)		3.95	%		3.93	%		3.76	%		3.94	%		3.77	%

Efficiency Ratio and Pre-Provision Net Revenue


	As of and for the three months ended									As of and for the six months ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2025			2025			2024			2025			2024
Net interest income	$	87,409		$	86,691		$	83,574		$	174,100		$	167,604
Add: impact of taxable equivalent adjustment		1,912			1,910			1,711			3,822			3,403
Net interest income FTE (non-GAAP)	$	89,321		$	88,601		$	85,285		$	177,922		$	171,007

Non-interest income	$	17,066		$	15,376		$	14,029		$	32,442		$	31,723

Non-interest expense	$	62,931		$	62,017		$	63,075		$	124,948		$	125,909
Less: other intangible assets amortization		(1,947	)		(1,977	)		(1,977	)		(3,924	)		(3,985	)
Non-interest expense excluding other intangible assets amortization (non-GAAP)	$	60,984		$	60,040		$	61,098		$	121,024		$	121,924

Efficiency ratio		60.24	%		60.76	%		64.62	%		60.50	%		63.17	%
Efficiency ratio excluding other intangible assets amortization FTE (non-GAAP)		57.32	%		57.74	%		61.52	%		57.53	%		60.14	%
Pre-provision net revenue (non-GAAP)	$	41,544		$	40,050		$	34,528		$	81,594		$	73,418
Pre-provision net revenue, FTE (non-GAAP)		43,456			41,960			36,239			85,416			76,821

The MIL Network –

July 23, 2025

MIL-OSI: Orrstown Financial Services, Inc. Reports Second Quarter 2025 Results and Announces Dividend Increase

Source: GlobeNewswire (MIL-OSI)

Net income of $19.4 million, or $1.01 per diluted share, for the three months ended June 30, 2025 compared to net income of $18.1 million, or $0.93 per diluted share, for the three months ended March 31, 2025; the second quarter of 2025 included $1.0 million in merger-related expenses compared to $1.6 million in merger-related expenses for the first quarter of 2025;
Excluding the impact of the merger-related expenses referenced above, net of taxes, net income and diluted earnings per share were $20.2 million⁽¹⁾ and $1.04⁽¹⁾, respectively, for the second quarter of 2025 compared to $19.3 million⁽¹⁾ and $1.00⁽¹⁾, respectively, for the first quarter of 2025;
Net interest margin, on a tax equivalent basis, was 4.07% in the second quarter of 2025 compared to 4.00% in the first quarter of 2025; the net accretion of purchase accounting marks positively impacted the margin by 50 basis points in the second quarter of 2025;
Return on average assets was 1.45% and return on average equity was 14.56% for the three months ended June 30, 2025, compared to 1.35% and 13.98% for the return on average assets and return on average equity, respectively, for the three months ended March 31, 2025;
Excluding the impact of the merger-related expenses referenced above, net of taxes, adjusted return on average assets was 1.51%⁽¹⁾ and adjusted return on average equity was 15.12%⁽¹⁾ for the three months ended June 30, 2025 compared to 1.45%⁽¹⁾ and 14.97%⁽¹⁾, respectively, for the three months ended March 31, 2025;
Loans increased by $55.4 million, or 6% annualized, from March 31, 2025 to June 30, 2025; classified loans decreased by $10.4 million from $76.2 million at March 31, 2025 to $65.8 million at June 30, 2025;
Noninterest income increased by $1.3 million from $11.6 million for the three months ended March 31, 2025 to $12.9 million for the three months ended June 30, 2025;
Noninterest expense decreased by $0.6 million from $38.2 million for the three months ended March 31, 2025 to $37.6 million for the three months ended June 30, 2025, reflecting a decline in merger-related expenses during the second quarter of 2025; merger-related costs are not expected to be meaningful going forward; the second quarter of 2025 also included $0.6 million of severance charges in salaries and employee benefits expense;
Efficiency ratio decreased from 63.2% for the three months ended March 31, 2025 to 60.3% for the three months ended June 30, 2025; excluding the impact of the merger-related expenses, the efficiency ratio was 58.7%⁽¹⁾ for the three months ended June 30, 2025 compared to 60.5%⁽¹⁾ for the three months ended March 31, 2025;
Tangible common equity increased to 8.3% at June 30, 2025 compared to 7.9% at March 31, 2025;
Tangible book value per common share⁽¹⁾ increased to $22.77 per share at June 30, 2025 compared to $21.99 per share at March 31, 2025;
The Board of Directors authorized a share repurchase program on June 20, 2025, through which the Company could repurchase up to 500,000 shares of its common stock;
The Board of Directors declared a cash dividend of $0.27 per common share, payable August 12, 2025, to shareholders of record as of August 5, 2025; this represents a $0.01 per share increase in the Company’s quarter cash dividend; the dividend has increased by 35% since the closing of the merger with Codorus Valley Bancorp.

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

HARRISBURG, Pa., July 22, 2025 (GLOBE NEWSWIRE) — Orrstown Financial Services, Inc. (NASDAQ: ORRF), the parent company of Orrstown Bank (the “Bank”), announced earnings for the periods ended June 30, 2025. Net income totaled $19.4 million for the three months ended June 30, 2025, compared to net income of $18.1 million for the three months ended March 31, 2025 and net income of $7.7 million for the three months ended June 30, 2024. Diluted earnings per share was $1.01 for the three months ended June 30, 2025, compared to diluted earnings per share of $0.93 for the three months ended March 31, 2025 and diluted earnings per share of $0.73 for the three months ended June 30, 2024. For the second quarter of 2025, excluding the impact of merger-related expenses, net of taxes, net income and diluted earnings per share were $20.2 million⁽¹⁾ and $1.04⁽¹⁾, respectively. For the first quarter of 2025, excluding the impact of merger-related expenses, net of taxes, net income and diluted earnings per share were $19.3 million⁽¹⁾ and $1.00⁽¹⁾, respectively. For the second quarter of 2024, excluding the impact of the merger-related expenses, net of taxes, net income and diluted earnings per share were $8.7 million⁽¹⁾ and $0.83⁽¹⁾, respectively.

“At the one-year mark after the merger with Codorus Valley Bancorp, we are very pleased to have achieved metrics near top of peers, with significant upside opportunities in front of us,” said Thomas R. Quinn, Jr., President and Chief Executive Officer. “In the second quarter, we experienced positive traction on loan production. While commercial loan growth was lower than expected, our pipeline remains strong as we head into the third quarter. We remain prudent with our lending decisions and will not compromise on credit quality. Net interest margin improved in the quarter with good momentum going into the remainder of the year. While expenses remain slightly elevated, we do not anticipate any further meaningful merger-related expenses and continue to implement process improvements that will enhance efficiency and facilitate future growth. We believe that our strong credit metrics and capital generation have positioned us well for the future.”

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

DISCUSSION OF RESULTS

Balance Sheet

Loans

Loans held for investment increased by $55.4 million and totaled $3.9 billion at both June 30, 2025 and March 31, 2025. Commercial loans increased by $16.1 million, or 2% annualized, and residential mortgages increased by $37.9 million from March 31, 2025 to June 30, 2025. The increase in loans included a purchase of property assessed clean energy (“PACE”) loans totaling $25.4 million.

Investment Securities

Investment securities, all of which are classified as available-for-sale, increased by $29.9 million to $885.4 million at June 30, 2025 from $855.5 million at March 31, 2025. During the second quarter of 2025, the Bank purchased $50.1 million of investment securities, which was partially offset by paydowns totaling $20.4 million. The overall duration of the Company’s investment securities portfolio was 4.5 years at June 30, 2025 compared to 4.3 years at March 31, 2025. See Appendix B for a summary of the Bank’s investment securities at June 30, 2025, highlighting their concentrations, credit ratings and credit enhancement levels.

Deposits

During the second quarter of 2025, deposits decreased by $117.1 million and totaled $4.5 billion at June 30, 2025 compared to $4.6 billion March 31, 2025. Time deposits, money market deposits, non-interest bearing demand deposits, saving deposits and interest-bearing demand deposits decreased by $58.0 million, $35.8 million, $13.9 million, $6.2 million and $3.2 million, respectively, from March 31, 2025 to June 30, 2025. The declines in time deposits and money market deposits are due to continued run-off in higher yielding promotional balances. The decreases in the other categories were consistent with normal cyclical activity. As a result of the decrease in total deposits, the Bank’s loan-to-deposit ratio increased to 87% at June 30, 2025 from 84% at March 31, 2025.

Borrowings

The Bank actively manages its liquidity position through its various sources of funding to meet the needs of its clients. FHLB advances and other borrowings were $136.3 million at June 30, 2025 compared to $100.3 million at March 31, 2025. The increase was due to higher utilization of overnight borrowings during the second quarter of 2025 as deposit balances declined and lending and investing activities increased. The Bank seeks to maintain sufficient liquidity to ensure client needs can be addressed in a timely basis. The Bank had available alternative funding sources, such as FHLB advances and other wholesale options, of approximately $1.7 billion at June 30, 2025.

Income Statement

Net Interest Income and Margin

Net interest income was $49.5 million for the three months ended June 30, 2025 compared to $48.8 million for the three months ended March 31, 2025. The net interest margin, on a tax equivalent basis, increased to 4.07% in the second quarter of 2025 from 4.00% in the first quarter of 2025. This increase is primarily the result of the cost of funds declining by 12 basis points from the first quarter of 2025 to the second quarter of 2025. This was partially offset by a decrease of seven basis points in the yield on loans from the three months ended March 31, 2025 to the three months ended June 30, 2025. This decrease was due to a reduction in accelerated accretion on acquired loans over that period. The second quarter 2025 net interest margin reflects the full impact of deposit rate reductions implemented in the prior quarter as well as the runoff of higher rate time deposits and money market balances.

The net interest margin was positively impacted by the net accretion impact of purchase accounting marks on loans, securities, deposits and borrowings of $5.2 million during the second quarter of 2025 compared to $6.9 million for the first quarter of 2025. This change was due primarily to lower accelerated accretion in the three months ended June 30, 2025.

Interest income on loans, on a tax equivalent basis, decreased by $0.4 million to $63.2 million for the three months ended June 30, 2025 compared to $63.6 million for the three months ended March 31, 2025. Average loans decreased by $14.7 million during the three months ended June 30, 2025 compared to the three months ended March 31, 2025. The accretion of purchase accounting marks on loans totaled $4.9 million during the second quarter of 2025 compared to $6.6 million during the first quarter of 2025.

Interest income on investment securities, on a tax equivalent basis, was $10.6 million for the second quarter of 2025 compared to $10.1 million in the first quarter of 2025, an increase of $0.5 million. Average investment securities increased by $39.0 million during the three months ended June 30, 2025 compared to the three months ended March 31, 2025 primarily due to the aforementioned purchases.

Interest expense, on a tax equivalent basis, decreased by $1.5 million to $25.3 million for the three months ended June 30, 2025 compared to $26.8 million for the three months ended March 31, 2025. Average interest-bearing deposits decreased by $70.3 million during the three months ended June 30, 2025 compared to the three months ended March 31, 2025. The cost of interest-bearing deposits declined by 14 basis points from the first quarter of 2025 to the second quarter of 2025. In addition, interest expense includes $0.4 million and $0.6 million of amortization of purchase accounting marks on interest bearing liabilities for the three months ended June 30, 2025 and March 31, 2025, respectively.

Provision for Credit Losses on Loans

The allowance for credit losses (“ACL”) on loans increased to $47.9 million at June 30, 2025 from $47.8 million at March 31, 2025. The ACL to total loans was 1.22% at June 30, 2025 compared to 1.23% at March 31, 2025. The Company recorded provision expense of $0.2 million for the three months ended June 30, 2025 compared to a recovery in the provision for credit losses on loans of $0.6 million for the three months ended March 31, 2025 . Net charge-offs were $0.1 million for the three months ended June 30, 2025 compared to $0.3 million for the three months ended March 31, 2025.

Classified loans decreased by $10.4 million to $65.8 million at June 30, 2025 from $76.2 million at March 31, 2025 due to net upgrades and loan repayments. Non-accrual loans totaled $22.4 million at June 30, 2025 compared to $22.7 million at March 31, 2025. Nonaccrual loans to total loans decreased to 0.57% at June 30, 2025 compared to 0.59% at March 31, 2025. Management believes the ACL to be adequate based on current asset quality metrics and economic forecasts.

Noninterest Income

Noninterest income increased by $1.3 million to $12.9 million for the three months ended June 30, 2025 from $11.6 million for the three months ended March 31, 2025.

Swap fee income increased by $0.3 million to $0.7 million for the three months ended June 30, 2025 compared to $0.4 million for the three months ended March 31, 2025. Swap fee income will fluctuate based on market conditions and client demand.

Income from service charges was $2.6 million for the three months ended June 30, 2025 compared to $2.4 million for the three months ended March 31, 2025 based on increased cash management services activity.

Income from mortgage banking activities increased by $0.2 million from $0.3 million in the three months ended March 31, 2025 to $0.5 million in the three months ended June 30, 2025. The first quarter of 2025 included a decrease of $0.2 million in the fair value of mortgage servicing rights.

Wealth management income decreased by $0.2 million to $5.2 million for the three months ended June 30, 2025 compared to $5.4 million for the three months ended March 31, 2025.

Other income increased by $0.7 million to $2.4 million for the three months ended June 30, 2025 compared to $1.7 million for the three months ended March 31, 2025. During the second quarter of 2025, the Bank recorded $0.3 million in solar tax credits and a gain on the sale of other real estate owned of $0.1 million.

Noninterest Expenses

Noninterest expenses decreased by $0.6 million to $37.6 million in the three months ended June 30, 2025 from $38.2 million in the three months ended March 31, 2025.

For the three months ended June 30, 2025, merger-related expenses totaled $1.0 million, a decrease of $0.6 million, compared to $1.6 million for the three months ended March 31, 2025. The merger-related costs incurred in the second quarter of 2025 primarily included software conversion costs. The Company does not expect to incur meaningful merger-related expenses going forward.

Salaries and benefits expense increased by $1.0 million to $21.4 million for the three months ended June 30, 2025 compared to $20.4 million for the three months ended March 31, 2025. The increase during the second quarter of 2025 includes $0.6 million of severance costs, the impact of merit salary increases in May and the impact of one extra day in the quarter.

Occupancy, furniture and equipment expenses decreased by $0.5 million to $4.2 million for the three months ended June 30, 2025 from $4.7 million for the three months ended March 31, 2025 primarily due to the seasonal expenses incurred during the first quarter of 2025.

Professional services expense increased by $0.2 million from the three months ended March 31, 2025 to the three months ended June 30, 2025. During the quarter, the Company continued to utilize an elevated level of third-party assistance to enhance daily functions and operational processes throughout the organization. While the Company will remain reliant on these services into the second half of 2025, the Company expects expenses related to these services to decline beginning in the third quarter of 2025.

Advertising and bank promotions expense increased by $0.6 million to $1.1 million in the three months ended June 30, 2025 from $0.5 million in the three months ended March 31, 2025 due to $0.7 million in contributions to tax credit programs during the second quarter of 2025. Taxes other than income decreased by $0.6 million in the three months ended June 30, 2025 compared to the three months ended March 31, 2025. This decrease reflects the tax impact of the contributions referenced above.

Income Taxes

The Company’s effective tax rate was 21.3% for the second quarter of 2025 compared to 20.7% for the first quarter of 2025. The Company’s effective tax rate for the three months ended June 30, 2025 is greater than the 21% federal statutory rate primarily due to the disallowed portion of interest expense against earnings in association with the Bank’s tax-exempt investments under the Tax Equity and Fiscal Responsibility Act of 1982 partially offset by the benefit of tax-exempt income, including interest earned on tax-exempt loans and securities and income from life insurance policies and tax credits. The Company regularly analyzes its projected taxable income and makes adjustments to the provision for income taxes accordingly.

Capital

Shareholders’ equity totaled $548.4 million at June 30, 2025 compared to $532.9 million at March 31, 2025. The increase is due to net income of $19.4 million and share-based compensation activity of $1.6 million, partially offset by dividend payments of $5.1 million and other comprehensive losses of $0.5 million.

Tangible book value per common share⁽¹⁾ increased to $22.77 per share at June 30, 2025 from $21.99 per share at March 31, 2025. The Company’s tangible common equity ratio was 8.3% at June 30, 2025 compared to 7.9% at March 31, 2025. Average tangible common equity per common share⁽¹⁾ was $18.43 at June 30, 2025 compared to $17.91 at March 31, 2025.

The Company’s capital ratios increased during the three months ended June 30, 2025 due primarily to earnings. The Company’s tier 1 common equity, tier 1 and total risk-based capital ratios were 10.9%, 11.1% and 13.3%, respectively, at June 30, 2025 compared to 10.6%, 10.8% and 13.1%, respectively, at March 31, 2025. The Company’s Tier 1 leverage ratio increased to 9.0% at June 30, 2025 compared to 8.6% at March 31, 2025.

At June 30, 2025, all four capital ratios applicable to the Company were above regulatory minimum levels to be deemed “well capitalized” under current bank regulatory guidelines. The Company continues to believe that capital is adequate to support the risks inherent in the balance sheet, as well as growth requirements.

The Board of Directors authorized a share repurchase program on June 20, 2025, through which the Company could repurchase up to 500,000 shares of its common stock. The Company repurchased 2,134 common shares during the second quarter of 2025.

⁽¹⁾ Non-GAAP measure. See Appendix A for additional information.

Investor Relations Contact:

Neelesh Kalani

Executive Vice President, Chief Financial Officer

Phone (717) 510-7097

FINANCIAL HIGHLIGHTS (Unaudited)


	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(In thousands)		2025			2024			2025			2024

Profitability for the period:
Net interest income	$	49,512		$	26,103		$	98,273		$	52,984
Provision for (Recovery of) credit losses – loans		209			812			(345	)		1,233
Recovery of credit losses – unfunded loan commitments		(100	)		—			(100	)		(123	)
Noninterest income		12,915			7,172			24,539			13,802
Noninterest expenses		37,614			22,639			75,790			45,108
Income before income tax expense		24,704			9,824			47,467			20,568
Income tax expense		5,256			2,086			9,968			4,299
Net income available to common shareholders	$	19,448		$	7,738		$	37,499		$	16,269

Financial ratios:
Return on average assets ⁽¹⁾		1.45	%		0.97	%		1.40	%		1.04	%
Return on average assets, adjusted ^{(1) (2) (3)}		1.51	%		1.09	%		1.48	%		1.14	%
Return on average equity ⁽¹⁾		14.56	%		11.41	%		14.28	%		12.09	%
Return on average equity, adjusted ^{(1) (2) (3)}		15.12	%		12.88	%		15.05	%		13.33	%
Net interest margin ⁽¹⁾		4.07	%		3.54	%		4.04	%		3.65	%
Efficiency ratio		60.3	%		68.0	%		61.7	%		67.5	%
Efficiency ratio, adjusted ^{(2) (3)}		58.7	%		64.6	%		59.6	%		64.8	%
Income per common share:
Basic	$	1.01		$	0.74		$	1.96		$	1.57
Basic, adjusted ^{(2) (3)}	$	1.05		$	0.84		$	2.06		$	1.73
Diluted	$	1.01		$	0.73		$	1.94		$	1.55
Diluted, adjusted ^{(2) (3)}	$	1.04		$	0.83		$	2.04		$	1.71

Average equity to average assets		9.97	%		8.50	%		9.81	%		8.58	%

⁽¹⁾ Annualized for the three and six months ended June 30, 2025 and 2024.
⁽²⁾ Ratio has been adjusted for the non-recurring charges for all periods presented.
⁽³⁾ Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

FINANCIAL HIGHLIGHTS (Unaudited)
(continued)
	June 30,			December 31,
(Dollars in thousands, except per share amounts)		2025			2024
At period-end:
Total assets	$	5,387,645		$	5,441,589
Loans, net of allowance for credit losses		3,883,481			3,882,525
Loans held-for-sale, at fair value		5,206			6,614
Securities available for sale, at fair value		885,373			829,711
Total deposits		4,516,625			4,623,096
FHLB advances and other borrowings and Securities sold under agreements to repurchase		166,381			141,227
Subordinated notes and trust preferred debt		69,021			68,680
Shareholders’ equity		548,448			516,682

Credit quality and capital ratios ⁽¹⁾:
Allowance for credit losses to total loans		1.22	%		1.24	%
Total nonaccrual loans to total loans		0.57	%		0.61	%
Nonperforming assets to total assets		0.42	%		0.45	%
Allowance for credit losses to nonaccrual loans		214	%		202	%
Total risk-based capital:
Orrstown Financial Services, Inc.		13.3	%		12.4	%
Orrstown Bank		13.3	%		12.4	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.		11.1	%		10.2	%
Orrstown Bank		12.1	%		11.2	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.		10.9	%		10.0	%
Orrstown Bank		12.1	%		11.2	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.		9.0	%		8.3	%
Orrstown Bank		9.8	%		9.1	%

Book value per common share	$	28.07		$	26.65

⁽¹⁾ Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the CECL standard.

ORRSTOWN FINANCIAL SERVICES, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands, except per share amounts)	June 30, 2025			December 31, 2024
Assets
Cash and due from banks	$	54,335		$	51,026
Interest-bearing deposits with banks		95,042			197,848
Cash and cash equivalents		149,377			248,874
Restricted investments in bank stocks		21,204			20,232
Securities available for sale (amortized cost of $916,830 and $864,920 at June 30, 2025 and December 31, 2024, respectively)		885,373			829,711
Loans held for sale, at fair value		5,206			6,614
Loans		3,931,379			3,931,214
Less: Allowance for credit losses		(47,898	)		(48,689	)
Net loans		3,883,481			3,882,525
Premises and equipment, net		51,703			50,217
Cash surrender value of life insurance		145,760			143,854
Goodwill		69,751			68,106
Other intangible assets, net		42,748			47,765
Accrued interest receivable		19,958			21,058
Deferred tax assets, net		36,683			42,647
Other assets		76,401			79,986
Total assets	$	5,387,645		$	5,441,589

Liabilities
Deposits:
Noninterest-bearing	$	918,263		$	894,176
Interest-bearing		3,598,362			3,728,920
Total deposits		4,516,625			4,623,096
Securities sold under agreements to repurchase and federal funds purchased		30,047			25,863
FHLB advances and other borrowings		136,334			115,364
Subordinated notes and trust preferred debt		69,021			68,680
Other liabilities		87,170			91,904
Total liabilities		4,839,197			4,924,907

Shareholders’ Equity
Preferred stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding		—			—
Common stock, no par value—$0.05205 stated value per share; 50,000,000 shares authorized; 19,713,126 shares issued and 19,535,835 outstanding at June 30, 2025; 19,722,640 shares issued and 19,389,967 outstanding at December 31, 2024		1,026			1,027
Additional paid—in capital		422,349			423,274
Retained earnings		153,923			126,540
Accumulated other comprehensive loss		(24,479	)		(26,316	)
Treasury stock— 177,291 and 332,673 shares, at cost at June 30, 2025 and December 31, 2024, respectively		(4,371	)		(7,843	)
Total shareholders’ equity		548,448			516,682
Total liabilities and shareholders’ equity	$	5,387,645		$	5,441,589

ORRSTOWN FINANCIAL SERVICES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share amounts)		2025			2024			2025			2024
Interest income
Loans	$	63,036		$	35,537		$	126,468		$	71,770
Investment securities – taxable		9,406			4,999			18,350			9,583
Investment securities – tax-exempt		878			881			1,753			1,758
Short-term investments		1,513			1,864			3,781			2,820
Total interest income		74,833			43,281			150,352			85,931
Interest expense
Deposits		22,855			15,265			47,115			28,781
Securities sold under agreements to repurchase and federal funds purchased		106			27			190			52
FHLB advances and other borrowings		1,030			1,152			2,148			2,626
Subordinated notes and trust preferred debt		1,330			734			2,626			1,488
Total interest expense		25,321			17,178			52,079			32,947
Net interest income		49,512			26,103			98,273			52,984
Provision for (Recovery of) credit losses – loans		209			812			(345	)		1,233
Recovery of credit losses – unfunded loan commitments		(100	)		—			(100	)		(123	)
Net interest income after provision for (recovery of) credit losses		49,403			25,291			98,718			51,874
Noninterest income
Service charges		2,630			1,283			5,025			2,483
Interchange income		1,441			961			2,868			1,872
Swap fee income		669			375			1,063			574
Wealth management income		5,267			3,312			10,682			6,414
Mortgage banking activities		478			369			780			827
Investment securities gains (losses)		8			(12	)		21			(17	)
Other income		2,422			884			4,100			1,649
Total noninterest income		12,915			7,172			24,539			13,802
Noninterest expenses
Salaries and employee benefits		21,364			13,195			41,752			26,947
Occupancy, furniture and equipment		4,211			2,705			8,886			5,344
Data processing		965			1,237			1,889			2,502
Advertising and bank promotions		1,077			774			1,576			1,172
FDIC insurance		674			419			1,498			860
Professional services		2,016			801			3,842			1,432
Taxes other than income		295			49			1,237			543
Intangible asset amortization		2,472			215			5,007			440
Merger-related expenses		968			1,135			2,617			1,807
Restructuring expenses		—			—			91			—
Other operating expenses		3,572			2,109			7,395			4,061
Total noninterest expenses		37,614			22,639			75,790			45,108
Income before income tax expense		24,704			9,824			47,467			20,568
Income tax expense		5,256			2,086			9,968			4,299
Net income	$	19,448		$	7,738		$	37,499		$	16,269

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
		2025			2024			2025			2024
Share information:
Basic earnings per share	$	1.01		$	0.74		$	1.96		$	1.57
Diluted earnings per share	$	1.01		$	0.73		$	1.94		$	1.55
Dividends paid per share	$	0.26		$	0.20		$	0.52		$	0.40
Weighted average shares – basic		19,173			10,393			19,165			10,371
Weighted average shares – diluted		19,342			10,553			19,335			10,517

ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)
	Three Months Ended
	6/30/2025						3/31/2025						12/31/2024						9/30/2024						6/30/2024
(In thousands)			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-			Taxable-
	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent	Average		Equivalent			Equivalent
	Balance		Interest			Rate	Balance		Interest			Rate	Balance		Interest			Rate	Balance		Interest			Rate	Balance		Interest			Rate
Assets
Federal funds sold & interest-bearing bank balances	$	136,106	$	1,513		4.46%	$	203,347	$	2,268		4.52%	$	199,236	$	2,492		4.96%	$	184,465	$	2,452		5.29%	$	142,868	$	1,864		5.25%
Investment securities ⁽¹⁾⁽²⁾		904,119		10,626		4.70		865,126		10,052		4.65		849,389		9,887		4.66		849,700		10,123		4.77		538,451		6,114		4.54
Loans ^(1)(3)(4)(5)		3,894,979		63,246		6.52		3,909,694		63,641		6.59		3,961,269		68,073		6.82		3,989,259		70,849		7.07		2,324,942		35,690		6.17
Total interest-earning assets		4,935,203		75,385		6.13		4,978,167		75,961		6.17		5,009,894		80,452		6.38		5,023,424		83,424		6.61		3,006,261		43,668		5.84
Other assets		439,569						447,530						454,271						491,719						204,863
Total assets	$	5,374,772					$	5,425,697					$	5,464,165					$	5,515,143					$	3,211,124
Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	2,463,687		13,880		2.26	$	2,473,543		14,156		2.32	$	2,522,885		15,575		2.45	$	2,554,743		16,165		2.52	$	1,649,753		10,118		2.47
Savings deposits		269,309		165		0.25		273,313		165		0.25		272,718		166		0.24		283,337		148		0.21		165,467		140		0.34
Time deposits		914,108		8,810		3.87		970,588		9,939		4.15		998,963		11,109		4.41		1,014,628		12,290		4.82		481,721		5,007		4.18
Total interest-bearing deposits		3,647,104		22,855		2.51		3,717,444		24,260		2.65		3,794,566		26,850		2.81		3,852,708		28,603		2.95		2,296,941		15,265		2.67
Securities sold under agreements to repurchase and federal funds purchased		25,917		106		1.64		26,163		84		1.30		21,572		67		1.23		23,075		96		1.66		13,412		27		0.81
FHLB advances and other borrowings		104,068		1,030		3.97		112,859		1,118		4.02		115,373		1,165		4.01		115,388		1,154		3.98		115,000		1,152		4.03
Subordinated notes and trust preferred debt		68,910		1,330		7.74		68,739		1,296		7.65		68,571		1,360		7.88		68,399		1,437		8.36		32,118		734		9.19
Total interest-bearing liabilities		3,845,999		25,321		2.64		3,925,205		26,758		2.76		4,000,082		29,442		2.92		4,059,570		31,290		3.07		2,457,471		17,178		2.81
Noninterest-bearing demand deposits		904,031						887,726						849,999						807,886						423,037
Other liabilities		89,058						89,077						97,685						110,017						57,828
Total liabilities		4,839,088						4,902,008						4,947,766						4,977,473						2,938,336
Shareholders’ equity		535,684						523,689						516,399						537,670						272,788
Total	$	5,374,772					$	5,425,697					$	5,464,165					$	5,515,143					$	3,211,124
Taxable-equivalent net interest income / net interest spread				50,064		3.49%				49,203		3.41%				51,010		3.46%				52,134		3.55%				26,490		3.02%
Taxable-equivalent net interest margin						4.07%						4.00%						4.05%						4.14%						3.54%
Taxable-equivalent adjustment				(552	)					(442	)					(437	)					(437	)					(387	)
Net interest income			$	49,512					$	48,761					$	50,573					$	51,697					$	26,103
Ratio of average interest-earning assets to average interest-bearing liabilities						128%						127%						125%						124%						122%


NOTES:
⁽¹⁾ Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
⁽²⁾ Average balance of investment securities is computed at fair value.
⁽³⁾ Average balances include nonaccrual loans.
⁽⁴⁾ Interest income on loans includes prepayment and late fees, where applicable.
⁽⁵⁾ Interest income on loans includes accretion on purchase accounting marks of $4.9 million, $6.6 million, $7.6 million, $7.3 million and $0.2 million for the three months ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.

ANALYSIS OF NET INTEREST INCOME
Average Balances and Interest Rates, Taxable-Equivalent Basis (Unaudited)
(continued)
	Six Months Ended
	June 30, 2025							June 30, 2024
			Taxable-			Taxable-				Taxable-			Taxable-
	Average		Equivalent			Equivalent		Average		Equivalent			Equivalent
(In thousands)	Balance		Interest			Rate		Balance		Interest			Rate
Assets
Federal funds sold & interest-bearing bank balances	$	169,541	$	3,781		4.50	%	$	108,695	$	2,820		5.22	%
Investment securities ⁽¹⁾⁽²⁾		884,730		20,787		4.70			529,151		11,808		4.47
Loans ^{(1)(3)(4)(5)(6)}		3,902,295		126,883		6.56			2,316,522		72,072		6.25
Total interest-earning assets		4,956,566		151,451		6.15			2,954,368		86,700		5.90
Other assets		443,528							200,580
Total assets	$	5,400,094						$	3,154,948
Liabilities and Shareholders’ Equity
Interest-bearing demand deposits	$	2,468,589		28,036		2.29		$	1,610,188		19,310		2.41
Savings deposits		271,104		330		0.25			167,736		284		0.34
Time deposits		942,387		18,749		4.01			455,082		9,187		4.06
Total interest-bearing deposits		3,682,080		47,115		2.58			2,233,006		28,781		2.59
Securities sold under agreements to repurchase and federal funds purchased		26,039		190		1.47			12,711		52		0.83
FHLB advances and other borrowings		108,439		2,148		3.99			126,253		2,626		4.18
Subordinated notes and trust preferred debt		68,825		2,626		7.69			32,109		1,488		9.32
Total interest-bearing liabilities		3,885,383		52,079		2.70			2,404,079		32,947		2.76
Noninterest-bearing demand deposits		895,924							420,253
Other liabilities		89,067							60,078
Total liabilities		4,870,374							2,884,410
Shareholders’ equity		529,720							270,538
Total liabilities and shareholders’ equity	$	5,400,094						$	3,154,948
Taxable-equivalent net interest income / net interest spread				99,372		3.45	%				53,753		3.14	%
Taxable-equivalent net interest margin						4.04	%						3.65	%
Taxable-equivalent adjustment				(1,099	)						(769	)
Net interest income			$	98,273						$	52,984
Ratio of average interest-earning assets to average interest-bearing liabilities						128	%						123	%

NOTES TO ANALYSIS OF NET INTEREST INCOME:
⁽¹⁾ Yields and interest income on tax-exempt assets have been computed on a taxable-equivalent basis assuming a 21% tax rate.
⁽²⁾ Average balance of investment securities is computed at fair value.
⁽³⁾ Average balances include nonaccrual loans.
⁽⁴⁾ Interest income on loans includes prepayment and late fees, where applicable.
⁽⁵⁾ Interest income on loans includes interest recovered of $1.6 million from the payoff of a commercial real estate loan on nonaccrual status for the six months ended June 30, 2024.
⁽⁶⁾ Interest income on loans includes accretion on purchase accounting marks of $11.5 million and $0.3 million for the six months ended June 30, 2025 and 2024, respectively.

ORRSTOWN FINANCIAL SERVICES, INC.
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)

(In thousands)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Profitability for the quarter:
Net interest income	$	49,512		$	48,761		$	50,573		$	51,697		$	26,103
Provision for (Recovery of) credit losses		109			(554	)		1,755			13,681			812
Noninterest income		12,915			11,624			11,247			12,386			7,172
Noninterest expenses		37,614			38,176			42,930			60,299			22,639
Income (loss) before income taxes		24,704			22,763			17,135			(9,897	)		9,824
Income tax expense (benefit)		5,256			4,712			3,451			(1,994	)		2,086
Net income (loss)	$	19,448		$	18,051		$	13,684		$	(7,903	)	$	7,738

Financial ratios:
Return on average assets ⁽¹⁾		1.45	%		1.35	%		1.00	%	(0.57)%				0.97	%
Return on average assets, adjusted ^(1)(2)(3)		1.51	%		1.45	%		1.22	%		1.55	%		1.09	%
Return on average equity ⁽¹⁾		14.56	%		13.98	%		10.54	%	(5.85)%				11.41	%
Return on average equity, adjusted ^(1)(2)(3)		15.12	%		14.97	%		12.86	%		15.85	%		12.88	%
Net interest margin ⁽¹⁾		4.07	%		4.00	%		4.05	%		4.14	%		3.54	%
Efficiency ratio		60.3	%		63.2	%		69.4	%		94.1	%		68.0	%
Efficiency ratio, adjusted ⁽²⁾⁽³⁾		58.7	%		60.5	%		62.3	%		60.2	%		64.6	%

Per share information:
Income (loss) per common share:
Basic	$	1.01		$	0.94		$	0.72		$	(0.41	)	$	0.74
Basic, adjusted ⁽²⁾⁽³⁾		1.05			1.01			0.87			1.12			0.84
Diluted		1.01			0.93			0.71			(0.41	)		0.73
Diluted, adjusted ⁽²⁾⁽³⁾		1.04			1.00			0.87			1.11			0.83
Book value		28.07			27.32			26.65			26.65			25.97
Tangible book value⁽³⁾		22.77			21.99			21.19			21.12			24.08
Average tangible common equity⁽³⁾		18.43			17.91			13.62			(6.49	)		12.35
Cash dividends paid		0.26			0.26			0.23			0.23			0.20

Average basic shares		19,172			19,157			19,118			19,088			10,393
Average diluted shares		19,342			19,328			19,300			19,226			10,553
⁽¹⁾ Annualized.
⁽²⁾ Ratio has been adjusted for non-recurring expenses for all periods presented.
⁽³⁾ Non-GAAP based financial measure. Please refer to Appendix A – Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations for a discussion of our use of non-GAAP based financial measures, including tables reconciling GAAP and non-GAAP financial measures appearing herein.

ORRSTOWN FINANCIAL SERVICES, INC.
HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
(In thousands)	June 30, 2025		March 31, 2025		December 31, 2024			September 30, 2024		June 30, 2024
Noninterest income:
Service charges	$	2,630	$	2,395	$	2,050		$	2,360	$	1,283
Interchange income		1,441		1,427		1,608			1,779		961
Swap fee income		669		394		597			505		375
Wealth management income		5,267		5,415		4,902			5,037		3,312
Mortgage banking activities		478		302		517			491		369
Other income		2,422		1,678		1,578			1,943		884
Investment securities gains (losses)		8		13		(5	)		271		(12	)
Total noninterest income	$	12,915	$	11,624	$	11,247		$	12,386	$	7,172

Noninterest expenses:
Salaries and employee benefits	$	21,364	$	20,388	$	22,444		$	27,190	$	13,195
Occupancy, furniture and equipment		4,211		4,675		4,893			4,333		2,705
Data processing		965		924		1,540			2,046		1,237
Advertising and bank promotions		1,077		499		878			537		774
FDIC insurance		674		824		955			862		419
Professional services		2,016		1,826		1,591			1,119		801
Taxes other than income		295		942		(312	)		503		49
Intangible asset amortization		2,472		2,535		2,838			2,464		215
Provision for legal settlement		—		—		478			—		—
Merger-related expenses		968		1,649		3,887			16,977		1,135
Restructuring expenses		—		91		39			257		—
Other operating expenses		3,572		3,823		3,699			4,011		2,109
Total noninterest expenses	$	37,614	$	38,176	$	42,930		$	60,299	$	22,639

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
(In thousands)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Balance Sheet at quarter end:
Cash and cash equivalents	$	149,377		$	287,120		$	248,874		$	236,780		$	132,509
Restricted investments in bank stocks		21,204			19,693			20,232			20,247			11,147
Securities available for sale		885,373			855,456			829,711			826,828			529,082
Loans held for sale, at fair value		5,206			5,261			6,614			3,561			1,562
Loans:
Commercial real estate:
Owner occupied		622,315			617,854			633,567			622,726			371,301
Non-owner occupied		1,203,038			1,157,383			1,160,238			1,164,501			710,477
Multi-family		239,388			257,724			274,135			276,296			151,542
Non-owner occupied residential		163,018			168,354			179,512			190,786			89,156
Agricultural		124,291			134,916			125,156			129,486			25,551
Commercial and industrial		487,063			455,494			451,384			471,983			349,425
Acquisition and development:
1-4 family residential construction		38,490			40,621			47,432			56,383			32,439
Commercial and land development		198,889			227,434			241,424			262,317			129,883
Municipal		28,693			30,780			30,044			27,960			10,594
Total commercial loans		3,105,185			3,090,560			3,142,892			3,202,438			1,870,368
Residential mortgage:
First lien		472,030			464,642			460,297			451,195			271,153
Home equity – term		5,784			9,224			5,988			6,508			4,633
Home equity – lines of credit		305,968			295,820			303,561			303,165			192,736
Other – term⁽¹⁾		25,384			—			—			—			—
Installment and other loans		17,028			15,739			18,476			18,131			8,713
Total loans		3,931,379			3,875,985			3,931,214			3,981,437			2,347,603
Allowance for credit losses		(47,898	)		(47,804	)		(48,689	)		(49,630	)		(29,864	)
Net loans held for investment		3,883,481			3,828,181			3,882,525			3,931,807			2,317,739
Goodwill		69,751			68,106			68,106			70,655			18,724
Other intangible assets, net		42,748			45,230			47,765			46,144			1,974
Total assets		5,387,645			5,441,586			5,441,589			5,470,589			3,198,782
Total deposits		4,516,625			4,633,716			4,623,096			4,650,853			2,702,884
FHLB advances and other borrowings and Securities sold under agreements to repurchase		166,381			123,480			141,227			137,310			129,625
Subordinated notes and trust preferred debt		69,021			68,850			68,680			68,510			32,128
Total shareholders’ equity		548,448			532,936			516,682			516,206			278,376

⁽¹⁾ Other – term includes property assessed clean energy (“PACE”) loans.

HISTORICAL TRENDS IN QUARTERLY FINANCIAL DATA (Unaudited)
(continued)
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Capital and credit quality measures⁽¹⁾:
Total risk-based capital:
Orrstown Financial Services, Inc.		13.3	%		13.1	%		12.4	%		12.4	%		13.3	%
Orrstown Bank		13.3	%		13.0	%		12.4	%		12.2	%		13.1	%
Tier 1 risk-based capital:
Orrstown Financial Services, Inc.		11.1	%		10.8	%		10.2	%		10.0	%		11.1	%
Orrstown Bank		12.1	%		11.9	%		11.2	%		11.0	%		12.0	%
Tier 1 common equity risk-based capital:
Orrstown Financial Services, Inc.		10.9	%		10.6	%		10.0	%		9.8	%		11.1	%
Orrstown Bank		12.1	%		11.9	%		11.2	%		11.0	%		12.0	%
Tier 1 leverage capital:
Orrstown Financial Services, Inc.		9.0	%		8.6	%		8.3	%		8.0	%		8.9	%
Orrstown Bank		9.8	%		9.5	%		9.1	%		8.8	%		9.5	%

Average equity to average assets		9.97	%		9.65	%		9.45	%		9.75	%		8.50	%
Allowance for credit losses to total loans		1.22	%		1.23	%		1.24	%		1.25	%		1.27	%
Total nonaccrual loans to total loans		0.57	%		0.59	%		0.61	%		0.68	%		0.36	%
Nonperforming assets to total assets		0.42	%		0.42	%		0.45	%		0.49	%		0.26	%
Allowance for credit losses to nonaccrual loans		214	%		210	%		202	%		184	%		357	%

Other information:
Net charge-offs	$	115		$	331		$	3,002		$	269		$	113
Classified loans		65,754			76,211			88,628			105,465			48,722
Nonperforming and other risk assets:
Nonaccrual loans		22,423			22,727			24,111			26,927			8,363
Other real estate owned		—			138			138			138			—
Total nonperforming assets		22,423			22,865			24,249			27,065			8,363
Financial difficulty modifications still accruing		5,759			5,127			4,897			9,497			—
Loans past due 90 days or more and still accruing		1,312			400			641			337			187
Total nonperforming and other risk assets	$	29,494		$	28,392		$	29,787		$	36,899		$	8,550
(1) Capital ratios are estimated for the current period, subject to regulatory filings. The Company elected the three-year phase in option for the day-one impact of ASU 2016-13 for current expected credit losses (“CECL”) to regulatory capital. Beginning in 2023, the Company adjusted retained earnings, allowance for credit losses includable in tier 2 capital and the deferred tax assets from temporary differences in risk weighted assets by the permitted percentage of the day-one impact from adopting the new CECL standard.

Appendix A- Supplemental Reporting of Non-GAAP Measures and GAAP to Non-GAAP Reconciliations

Management believes providing certain other “non-GAAP” financial information will assist investors in their understanding of the effect on recent financial results from non-recurring charges.

As a result of acquisitions, the Company has intangible assets consisting of goodwill, core deposit and other intangible assets, which totaled $112.5 million and $115.9 million at June 30, 2025 and December 31, 2024, respectively. In addition, during the three months ended June 30, 2025, March, 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, the Company incurred $1.0 million, $1.6 million, $3.9 million, $17.0 million and $1.1 million in merger-related expenses, respectively. During the three months ended December 31, 2024 and September 30, 2024, the Company incurred other non-recurring charges totaling $0.5 million and $20.2 million, respectively.

Tangible book value per common share, tangible common equity and the impact of the non-recurring expenses on net income and associated ratios, as used by the Company in this earnings release, are determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). While we believe this information is a useful supplement to GAAP based measures presented in this earnings release, readers are cautioned that this non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for financial measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of our results and financial condition as reported under GAAP, nor are such measures necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that our future results will be unaffected by similar adjustments to be determined in accordance with GAAP.

The following tables present the computation of each non-GAAP based measure:

(In thousands)

Tangible Book Value per Common Share	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Shareholders’ equity (most directly comparable GAAP-based measure)	$	548,448		$	532,936		$	516,682		$	516,206		$	278,376
Less: Goodwill		69,751			68,106			68,106			70,655			18,724
Other intangible assets		42,748			45,230			47,765			46,144			1,974
Related tax effect		(8,977	)		(9,498	)		(10,031	)		(9,690	)		(415	)
Tangible common equity (non-GAAP)	$	444,926		$	429,098		$	410,842		$	409,097		$	258,093

Common shares outstanding		19,536			19,510			19,390			19,373			10,720

Book value per share (most directly comparable GAAP-based measure)	$	28.07		$	27.32		$	26.65		$	26.65		$	25.97
Intangible assets per share		5.30			5.33			5.46			5.53			1.89
Tangible book value per share (non-GAAP)	$	22.77		$	21.99		$	21.19		$	21.12		$	24.08

Return on Average Common Equity	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024		June 30, 2024
Average shareholders’ equity	$	535,684		$	523,689		$	516,399		$	537,670	$	272,788
Less: Average goodwill		68,126			68,106			71,477			36,034		18,724
Less: Average other intangible assets, gross		44,304			46,864			45,319			17,393		2,105
Average tangible equity	$	423,254		$	408,719		$	399,603		$	484,243	$	251,959
Return on average tangible equity		18.43	%		17.91	%		13.62	%	(6.49)%			12.35	%

(In thousands)	Three Months Ended															Six Months Ended
Adjusted Ratios for Non-recurring Charges	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024
Net income (loss) (A) – most directly comparable GAAP-based measure	$	19,448		$	18,051		$	13,684		$	(7,903	)	$	7,738		$	37,499		$	16,269
Plus: Merger-related expenses (B)		968			1,649			3,887			16,977			1,135			2,617			1,807
Plus: Executive retirement expenses (B)		—			—			35			4,758			—			—			—
Plus: Provision for credit losses on non-PCD loans (B)		—			—			—			15,504			—			—			—
Plus: Provision for legal settlement (B)		—			—			478			—			—			—			—
Less: Related tax effect (C)		(221	)		(368	)		(1,386	)		(7,915	)		(139	)		(590	)		(140	)
Adjusted net income (D=A+B-C) – Non-GAAP	$	20,195		$	19,332		$	16,698		$	21,421		$	8,734		$	39,526		$	17,936

Average assets (E)	$	5,374,772		$	5,425,697		$	5,464,165		$	5,515,143		$	3,211,124		$	5,400,094		$	3,154,948
Return on average assets (= A / E) – most directly comparable GAAP-based measure ⁽¹⁾		1.45	%		1.35	%		1.00	%	(0.57)%				0.97	%		1.40	%		1.04	%
Return on average assets, adjusted (= D / E) – Non-GAAP ⁽¹⁾		1.51	%		1.45	%		1.22	%		1.55	%		1.09	%		1.48	%		1.14	%

Average equity (F)	$	535,684		$	523,689		$	516,399		$	537,670		$	272,788		$	529,720		$	270,538
Return on average equity (= A / F) – most directly comparable GAAP-based measure ⁽¹⁾		14.56	%		13.98	%		10.54	%	(5.85)%				11.41	%		14.28	%		12.09	%
Return on average equity, adjusted (= D / F) – Non-GAAP ⁽¹⁾		15.12	%		14.97	%		12.86	%		15.85	%		12.88	%		15.05	%		13.33	%

Weighted average shares – basic (G) – most directly comparable GAAP-based measure		19,173			19,157			19,118			19,088			10,393			19,165			10,371
Basic earnings (loss) per share (= A / G) – most directly comparable GAAP-based measure	$	1.01		$	0.94		$	0.72		$	(0.41	)	$	0.74		$	1.96		$	1.57
Basic earnings per share, adjusted (= D / G) – Non-GAAP	$	1.05		$	1.01		$	0.87		$	1.12		$	0.84		$	2.06		$	1.73

Weighted average shares – diluted (H) – most directly comparable GAAP-based measure		19,342			19,328			19,300			19,226			10,553			19,335			10,517
Diluted earnings (loss) per share (= A / H) – most directly comparable GAAP-based measure	$	1.01		$	0.93		$	0.71		$	(0.41	)	$	0.73		$	1.94		$	1.55
Diluted earnings per share, adjusted (= D / H) – Non-GAAP	$	1.04		$	1.00		$	0.87		$	1.11		$	0.83		$	2.04		$	1.71

(1) Annualized
	Three Months Ended															Six Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			June 30, 2025			June 30, 2024
Noninterest expense (I) – most directly comparable GAAP-based measure	$	37,614		$	38,176		$	42,930		$	60,299		$	22,639		$	75,790		$	45,108
Less: Merger-related expenses (B)		(968	)		(1,649	)		(3,887	)		(16,977	)		(1,135	)		(2,617	)		(1,807	)
Less: Executive retirement expenses (B)		—			—			(35	)		(4,758	)		—			—			—
Less: Provision for legal settlement (B)		—			—			(478	)		—			—			—			—
Adjusted noninterest expense (J = I – B) – Non-GAAP	$	36,646		$	36,527		$	38,531		$	38,564		$	21,504		$	73,173		$	43,301

Net interest income (K)	$	49,512		$	48,761		$	50,573		$	51,697		$	26,103		$	98,273		$	52,984
Noninterest income (L)		12,915			11,624			11,247			12,386			7,172			24,539			13,802
Total operating income (M = K + L)	$	62,427		$	60,385		$	61,820		$	64,083		$	33,275		$	122,812		$	66,786

Efficiency ratio (= I / M) – most directly comparable GAAP-based measure		60.3	%		63.2	%		69.4	%		94.1	%		68.0	%		61.7	%		67.5	%
Efficiency ratio, adjusted (= J / M) – Non-GAAP		58.7	%		60.5	%		62.3	%		60.2	%		64.6	%		59.6	%		64.8	%

(1) Annualized

Appendix B- Investment Portfolio Concentrations

The following table summarizes the credit ratings and collateral associated with the Company’s investment security portfolio, excluding equity securities, at June 30, 2025:

(In thousands)

Sector	Portfolio Mix		Amortized Book		Fair Value		Credit Enhancement		AAA		AA		A		BBB		BB		NR		Collateral / Guarantee Type
Unsecured ABS	—	%	$	2,827	$	2,673	28	%	—	%	—	%	—	%	—	%	—	%	100	%	Unsecured Consumer Debt
Student Loan ABS	—			3,577		3,576	28		—		—		—		—		—		100		Seasoned Student Loans
Federal Family Education Loan ABS	8			75,724		74,828	11		—		47		33		7		13		—		Federal Family Education Loan ⁽¹⁾
PACE Loan ABS	—			1,912		1,702	7		100		—		—		—		—		—		PACE Loans ⁽²⁾
Non-Agency CMBS	3			24,012		24,027	24		—		—		—		—		—		100
Non-Agency RMBS	2			15,936		14,596	16		100		—		—		—		—		—		Reverse Mortgages ⁽³⁾
Municipal – General Obligation	11			100,035		90,241			16		77		7		—		—		—
Municipal – Revenue	13			120,446		105,710			—		82		12		—		—		6
SBA ReRemic ⁽⁵⁾	—			1,904		1,890			—		100		—		—		—		—		SBA Guarantee ⁽⁴⁾
Small Business Administration	1			5,156		5,275			—		100		—		—		—		—		SBA Guarantee ⁽⁴⁾
Agency MBS	22			198,876		197,965			—		100		—		—		—		—		Residential Mortgages ⁽⁴⁾
Agency CMO	38			344,233		342,057			—		100		—		—		—		—
U.S. Treasury securities	2			20,036		18,641			—		100		—		—		—		—		U.S. Government Guarantee ⁽⁴⁾
Corporate bonds	—			1,941		1,977			—		—		52		48		—		—
	100	%	$	916,615	$	885,158			4	%	85	%	5	%	1	%	1	%	4	%

⁽¹⁾ 97% guaranteed by U.S. government
⁽²⁾ PACE acronym represents Property Assessed Clean Energy loans
⁽³⁾ Non-agency reverse mortgages with current structural credit enhancements
⁽⁴⁾ Guaranteed by U.S. government or U.S. government agencies
⁽⁵⁾ SBA ReRemic acronym represents Re-Securitization of Real Estate Mortgage Investment Conduits

Note: Ratings in table are the lowest of the six rating agencies (Standard & Poor’s, Moody’s, Fitch, Morningstar, DBRS and Kroll Bond Rating Agency). Standard & Poor’s rates U.S. government obligations at AA+.

About the Company

With $5.4 billion in assets, Orrstown Financial Services, Inc. and its wholly-owned subsidiary, Orrstown Bank, provide a wide range of consumer and business financial services in Berks, Cumberland, Dauphin, Franklin, Lancaster, Perry and York Counties, Pennsylvania and Anne Arundel, Baltimore, Harford, Howard, and Washington Counties, Maryland, as well as Baltimore City, Maryland. The Company’s lending area also includes counties in Pennsylvania, Maryland, Delaware, Virginia and West Virginia within a 75-mile radius of the Company’s executive and administrative offices as well as the District of Columbia. Orrstown Bank is an Equal Housing Lender and its deposits are insured up to the legal maximum by the FDIC. Orrstown Financial Services, Inc.’s common stock is traded on Nasdaq (ORRF). For more information about Orrstown Financial Services, Inc. and Orrstown Bank, visit www.orrstown.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Forward-looking statements reflect the current views of the Company’s management with respect to, among other things, future events and the Company’s financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “forecast,” “goal,” “target,” “would” and “outlook,” or the negative variations of those words or other comparable words of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates, predictions or projections about events or the Company’s industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements and there can be no assurances that the Company will achieve the desired level of new business development and new loans, growth in the balance sheet and fee-based revenue lines of business, cost savings initiatives and continued reductions in risk assets or mitigation of losses in the future. Factors which could cause the actual results to differ from those expressed or implied by the forward-looking statements include, but are not limited to, the following: interest rate changes or volatility; general economic conditions (including inflation and concerns about liquidity) on a national basis or in the local markets in which the Company operates; ineffectiveness of the Company’s strategic growth plan due to changes in current or future market conditions; the effects of competition and how it may impact our community banking model, including industry consolidation and development of competing financial products and services; changes in consumer behavior due to changing political, business and economic conditions, or legislative or regulatory initiatives; changes in, and evolving interpretations of, existing and future laws and regulations; changes in credit quality; inability to raise capital, if necessary, under favorable conditions; volatility in the securities markets; the demand for our products and services; deteriorating economic conditions; geopolitical tensions; operational risks including, but not limited to, cybersecurity incidents, fraud, natural disasters and future pandemics; expenses associated with litigation and legal proceedings; the possibility that the anticipated benefits of the merger with Codorus Valley Bancorp are not realized when expected or at all; and other risks and uncertainties, including those detailed in our Annual Report on Form 10-K for the year ended December 31, 2024 under the sections titled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in subsequent filings made with the Securities and Exchange Commission.

The foregoing list of factors is not exhaustive. If one or more events related to these or other risks or uncertainties materializes, or if the Company’s underlying assumptions prove to be incorrect, actual results may differ materially from what the Company anticipates. Accordingly, you should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and the Company disclaims any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. New risks and uncertainties arise from time to time, and it is not possible for the Company to predict those events or how they may affect it. In addition, the Company cannot assess the impact of each factor on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that the Company or persons acting on the Company’s behalf may issue.

The review period for subsequent events extends up to and includes the filing date of a public company’s financial statements, when filed with the Securities and Exchange Commission. Accordingly, the consolidated financial information presented in this announcement is subject to change. Annualized, pro forma, projected and estimated numbers in this document are used for illustrative purposes only and are not forecasts and may not reflect actual results.

The MIL Network –

July 23, 2025

MIL-OSI: Norwood Financial Corp announces Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Quarterly and Year-to-Date Highlights:

Fully diluted EPS of $0.67, a 29% increase over the same period in 2024
Return on assets rose 31 basis points to 1.06% from 2Q 2024.
Net interest margin increased 13 basis points vs. the prior quarter and 63 basis points over the prior year.
Loans grew at a 4.4% and 8.2% annualized rate during the second quarter and year-to-date, respectively.
Deposits grew year-to-date at an annualized rate of 15% while deposit costs fell 20 basis points since the 4^th quarter of 2024.
Capital continues to improve on increased earnings and lower accumulated other comprehensive income (AOCI) adjustment.

HONESDALE, Pa., July 22, 2025 (GLOBE NEWSWIRE) — Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months and six months ended June 30, 2025.

Jim Donnelly, President and Chief Executive Officer, stated, “Our company’s performance continues to strengthen, due to increased yields coming out of our 2024 4^th quarter repositioning, as well as improved results in all our business lines. In the first half of 2025 we achieved robust growth in both loans and deposits while improving yields as well. We enter the second half of 2025 on solid footing and with good momentum”

Mr. Donnelly continued, “I am proud of the performance from the entire Norwood team as they remain focused on delivering the products and services that help our customers achieve their goals. During the second quarter we launched our ‘Every Day Better’ campaign to high acclaim from customers, employees, and community members. This full rebrand enabled us to articulate our values and mission, stand out from competitors, and unite and energize our company culture. Building on this great combination of a high-performing team and strong brand, I am confident that we are on our way to creating a bright future for us, our customers, and our shareholders.”

Selected Financial Highlights (unaudited)

(dollars in thousands, except per share data)	Year-Over Year								Linked Quarter					Year-to-Date
	3 Months Ended								3 Months Ended					6 Months Ended
	Jun-25			Jun-24			Change		Mar-25			Change		Jun-25			Jun-24			Change
Net interest income	$	19,065		$	14,925		$	4,140	$	17,857		$	1,208	$	36,923		$	29,635		$	7,288
Net interest spread (fte)		2.75	%		2.06	%	69 bps			2.61	%	14 bps			2.68	%		2.07	%	30 bps
Net interest margin (fte)		3.43	%		2.80	%	63 bps			3.30	%	13 bps			3.37	%		2.80	%	26 bps
Net income	$	6,205		$	4,213		$	1,992	$	5,773		$	432	$	11,978		$	8,646		$	3,332
Diluted earnings per share	$	0.67		$	0.52		$	0.15	$	0.63		$	0.04	$	1.30		$	1.07		$	0.23
Return on average assets		1.06	%		0.75	%	31 bps			1.01	%	5 bps			1.03	%		0.78	%	25 bps
Return on tangible equity		12.83	%		9.44	%	339 bps			12.40	%	43 bps			12.62	%		11.49	%	113 bps

Discussion of financial results for the three months ended June 30, 2025:

The Company had net income of $6.2 million for the three months ended June 30, 2025, an increase of $2.0 million over the same period last year.
Net interest income increased during the second quarter of 2025 compared to the second quarter of 2024 due to increases in asset yields while yields on liabilities decreased.
Correspondingly, the net interest margin in the second quarter of 2025 was 3.43% compared to 2.80% in the second quarter of 2024.
Non-interest income in the first 6 months of 2025 increased $386 thousand or 9.2% over the same period in 2024.
The efficiency ratio for the second quarter of 2025 was 58.7% compared to 66.7% in the second quarter of 2024.
As of June 30, 2025, total assets were $2.365 billion, compared to $2.235 billion at June 30, 2024, an increase of 5.82%.
Loans receivable were $1.791 billion at June 30, 2025, compared to $1.641 billion at June 30, 2024, an increase of 9.1% .
Total deposits were $1.997 billion at June 30, 2025, compared to $1.811 billion at June 30, 2024, an increase of 10.3%.
Tangible Common Equity was 8.39% as of June 30, 2025, versus 6.92% at June 30, 2024.
Tangible Book Value per share increased $1.32 from $19.85 at December 31, 2024, to $21.17 at June 30, 2025.

Norwood Financial Corp is the parent company of Wayne Bank, which operates from sixteen offices throughout Northeastern Pennsylvania and fourteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Non-GAAP Financial Measures (unaudited)

The following tables reconcile certain Non-GAAP financial measures references in this release:

	Three months ended						Six months ended
(dollars in thousands)	June 30						June 30
		2025			2024			2025			2024

Net Interest Income	$	19,065		$	14,925		$	36,923		$	29,635
Taxable equivalent basis adjustment using 21% marginal tax rate		199			199			397			394
Net interest income on a fully taxable equivalent basis	$	19,264		$	15,124		$	37,320		$	30,029


	Three months ended						Six months ended
(dollars in thousands)	June 30						June 30
		2025			2024			2025			2024

Average equity	$	223,351		$	179,494		$	220,787		$	180,791
Average goodwill and other intangibles		(29,394	)		(29,457	)		(29,402	)		(29,466	)
Average tangible equity	$	193,957		$	150,037		$	191,385		$	151,325

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance”, “solid footing,” “good momentum,” “bright future” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact: John M. McCaffery
Executive Vice President &
Chief Financial Officer
NORWOOD FINANCIAL CORP
272-304-3003
www.waynebank.com

NORWOOD FINANCIAL CORP
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
(unaudited)
		June 30
		2025			2024
ASSETS
Cash and due from banks	$	32,052		$	29,903
Interest-bearing deposits with banks		20,993			39,492
Cash and cash equivalents		53,045			69,395

Securities available for sale		402,460			397,578
Loans receivable		1,790,574			1,641,355
Less: Allowance for credit losses		20,908			17,806
Net loans receivable		1,769,666			1,623,549
Regulatory stock, at cost		7,538			6,443
Bank premises and equipment, net		21,608			18,265
Bank owned life insurance		46,099			46,121
Foreclosed real estate owned		–			–
Accrued interest receivable		8,642			8,329
Deferred tax assets, net		17,693			21,707
Goodwill		29,266			29,266
Other intangible assets		121			183
Other assets		9,212			14,480
TOTAL ASSETS	$	2,365,350		$	2,235,316

LIABILITIES
Deposits:
Non-interest bearing demand	$	406,358		$	391,849
Interest-bearing		1,591,476			1,419,323
Total deposits		1,997,834			1,811,172
Short-term borrowings		26,500			62,335
Other borrowings		85,350			148,087
Accrued interest payable		10,975			13,329
Other liabilities		19,266			18,206
TOTAL LIABILITIES		2,139,925			2,053,129

STOCKHOLDERS’ EQUITY
Preferred Stock, no par value per share, authorized 5,000,000 shares		–			–
Common Stock, $.10 par value per share,
authorized: 20,000,000 shares,
issued: 2025: 9,490,505 shares, 2024: 8,311,851 shares		949			831
Surplus		126,990			98,082
Retained earnings		131,199			139,070
Treasury stock, at cost: 2025: 229,983 shares, 2024: 221,540 shares		(6,208	)		(5,977	)
Accumulated other comprehensive loss		(27,505	)		(49,819	)
TOTAL STOCKHOLDERS’ EQUITY		225,425			182,187

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	2,365,350		$	2,235,316

NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
		Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
INTEREST INCOME
Loans receivable, including fees	$	27,115	$	24,121	$	53,103	$	47,802
Securities		3,871		2,584		7,742		5,109
Other		220		966		446		1,697
Total Interest income		31,206		27,671		61,291		54,608

INTEREST EXPENSE
Deposits		10,869		10,687		21,617		20,796
Short-term borrowings		211		356		669		692
Other borrowings		1,061		1,703		2,082		3,485
Total Interest expense		12,141		12,746		24,368		24,973
NET INTEREST INCOME		19,065		14,925		36,923		29,635
PROVISION FOR (RELEASE OF) CREDIT LOSSES		950		347		1,807		(276	)
NET INTEREST INCOME AFTER PROVISION FOR (RELEASE OF) CREDIT LOSSES		18,115		14,578		35,116		29,911


OTHER INCOME
Service charges and fees		1,514		1,504		3,027		2,847
Income from fiduciary activities		226		225		551		463
Gains on sales of loans, net		65		36		112		42
Earnings and proceeds on life insurance policies		266		253		552		520
Other		177		189		357		341
Total other income		2,248		2,207		4,599		4,213

OTHER EXPENSES
Salaries and employee benefits		6,605		5,954		13,077		12,090
Occupancy, furniture and equipment		1,349		1,229		2,727		2,489
Data processing and related operations		1,189		1,024		2,274		2,046
Taxes, other than income		192		179		385		272
Professional fees		623		508		1,282		1,092
FDIC Insurance assessment		355		309		761		670
Foreclosed real estate		137		15		141		36
Amortization of intangibles		15		19		30		38
Other		2,066		2,207		3,918		4,442
Total other expenses		12,531		11,444		24,595		23,175

INCOME BEFORE TAX EXPENSE		7,832		5,341		15,120		10,949
INCOME TAX EXPENSE		1,627		1,128		3,142		2,303
NET INCOME	$	6,205	$	4,213	$	11,978	$	8,646

Basic earnings per share	$	0.67	$	0.52	$	1.30	$	1.07

Diluted earnings per share	$	0.67	$	0.52	$	1.30	$	1.07

NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)

	For the Quarter Ended
	June 30, 2025								March 31, 2025								June 30, 2024
	Average						Average		Average						Average		Average						Average
	Balance			Interest			Rate		Balance			Interest			Rate		Balance			Interest			Rate
	(2)			(1)			(3)		(2)			(1)			(3)		(2)			(1)			(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	19,085		$	220		4.62	%	$	20,802		$	226		4.41	%	$	69,173		$	967		5.62	%
Securities available for sale:
Taxable		404,428			3,624		3.59			408,427			3,623		3.60			401,014			2,206		2.21
Tax-exempt (1)		44,158			312		2.83			44,242			312		2.86			69,126			477		2.78
Total securities available for sale (1)		448,586			3,936		3.52			452,669			3,935		3.53			470,140			2,683		2.30
Loans receivable (1) (4) (5)		1,783,626			27,249		6.13			1,743,572			26,120		6.08			1,629,283			24,220		5.98
Total interest-earning assets		2,251,297			31,405		5.60			2,217,043			30,281		5.54			2,168,596			27,870		5.17
Non-interest earning assets:
Cash and due from banks		30,323								28,705								26,422
Allowance for credit losses		(20,733	)							(20,154	)							(18,023	)
Other assets		94,922								93,131								69,718
Total non-interest earning assets		104,512								101,682								78,117
Total Assets	$	2,355,809							$	2,318,725							$	2,246,713
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	573,904		$	2,887		2.02		$	546,884		$	2,801		2.08		$	450,918		$	2,397		2.14
Savings		204,318			119		0.23			211,905			142		0.27			233,676			286		0.49
Time		821,725			7,863		3.84			793,803			7,805		3.99			755,224			8,004		4.26
Total interest-bearing deposits		1,599,947			10,869		2.72			1,552,592			10,748		2.81			1,439,818			10,687		2.99
Short-term borrowings		17,757			211		4.77			44,297			458		4.19			61,689			356		2.32
Other borrowings		95,792			1,061		4.44			93,549			1,021		4.43			149,442			1,703		4.58
Total interest-bearing liabilities		1,713,496			12,141		2.84			1,690,438			12,227		2.93			1,650,949			12,746		3.11
Non-interest bearing liabilities:
Demand deposits		389,323								380,544								387,962
Other liabilities		29,639								29,549								28,308
Total non-interest bearing liabilities		418,962								410,093								416,270
Stockholders’ equity		223,351								218,194								179,494
Total Liabilities and Stockholders’ Equity	$	2,355,809							$	2,318,725							$	2,246,713
Net interest income/spread (tax equivalent basis)					19,264		2.75	%					18,054		2.61	%					15,124		2.06	%
Tax-equivalent basis adjustment					(199	)							(197	)							(199	)
Net interest income				$	19,065							$	17,857							$	14,925
Net interest margin (tax equivalent basis)							3.43	%							3.30	%							2.80	%


(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.



	Year to Date
	June 30, 2025								March 31, 2025								June 30, 2024
	Average						Average		Average						Average		Average						Average
	Balance			Interest			Rate		Balance			Interest			Rate		Balance			Interest			Rate
	(2)			(1)			(3)		(2)			(1)			(3)		(2)			(1)			(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	19,939		$	446		4.51	%	$	20,802		$	226		4.41	%	$	61,551		$	1,697		5.54	%
Securities available for sale:
Taxable		406,416			7,247		3.60			408,427			3,623		3.60			401,645			4,353		2.18
Tax-exempt (1)		44,199			626		2.86			44,242			312		2.86			69,503			958		2.77
Total securities available for sale (1)		450,615			7,873		3.52			452,669			3,935		3.53			471,148			5,311		2.27
Loans receivable (1) (4) (5)		1,763,710			53,369		6.10			1,743,572			26,120		6.08			1,620,694			47,994		5.96
Total interest-earning assets		2,234,264			61,688		5.57			2,217,043			30,281		5.54			2,153,393			55,002		5.14
Non-interest earning assets:
Cash and due from banks		29,519								28,705								25,508
Allowance for credit losses		(20,445	)							(20,154	)							(18,559	)
Other assets		94,031								93,131								71,705
Total non-interest earning assets		103,105								101,682								78,654
Total Assets	$	2,337,369							$	2,318,725							$	2,232,047
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	560,469		$	5,688		2.05		$	546,884		$	2,801		2.08		$	450,372		$	4,707		2.10
Savings		208,090			261		0.25			211,905			142		0.27			234,611			536		0.46
Time		807,841			15,668		3.91			793,803			7,805		3.99			740,211			15,553		4.23
Total interest-bearing deposits		1,576,400			21,617		2.77			1,552,592			10,748		2.81			1,425,194			20,796		2.93
Short-term borrowings		30,954			669		4.36			44,297			458		4.19			59,843			692		2.33
Other borrowings		94,676			2,082		4.43			93,549			1,021		4.43			152,470			3,485		4.60
Total interest-bearing liabilities		1,702,030			24,368		2.89			1,690,438			12,227		2.93			1,637,507			24,973		3.07
Non-interest bearing liabilities:
Demand deposits		384,958								380,544								387,014
Other liabilities		29,594								29,549								26,735
Total non-interest bearing liabilities		414,552								410,093								413,749
Stockholders’ equity		220,787								218,194								180,791
Total Liabilities and Stockholders’ Equity	$	2,337,369							$	2,318,725							$	2,232,047
Net interest income/spread (tax equivalent basis)					37,320		2.68	%					18,054		2.61	%					30,029		2.07	%
Tax-equivalent basis adjustment					(397	)							(197	)							(394	)
Net interest income				$	36,923							$	17,857							$	29,635
Net interest margin (tax equivalent basis)							3.37	%							3.30	%							2.80	%


(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.

NORWOOD FINANCIAL CORP
Financial Highlights (Unaudited)
(dollars in thousands, except per share data)

For the Three Months Ended June 30		2025			2024

Net interest income	$	19,065		$	14,925
Net income		6,205			4,213

Net interest spread (fully taxable equivalent)		2.75	%		2.06	%
Net interest margin (fully taxable equivalent)		3.43	%		2.80	%
Return on average assets		1.06	%		0.75	%
Return on average equity		11.14	%		9.44	%
Return on average tangible equity		12.83	%		11.29	%
Basic earnings per share	$	0.67		$	0.52
Diluted earnings per share	$	0.67		$	0.52

For the Six Months Ended June 30		2025			2024

Net interest income		36,923			29,635
Net income		11,978			8,646

Net interest spread (fully taxable equivalent)		2.68	%		2.07	%
Net interest margin (fully taxable equivalent)		3.37	%		2.80	%
Return on average assets		1.03	%		0.78	%
Return on average equity		10.94	%		9.62	%
Return on average tangible equity		12.62	%		11.49	%
Basic earnings per share		1.30			1.07
Diluted earnings per share		1.30			1.07



As of June 30		2025			2024

Total assets	$	2,365,350		$	2,235,316
Total loans receivable		1,790,574			1,641,355
Allowance for credit losses		20,908			17,806
Total deposits		1,997,834			1,811,172
Stockholders’ equity		225,425			182,187
Trust assets under management		207,402			201,079

Book value per share	$	24.34		$	22.52
Tangible book value per share	$	21.17		$	18.88
Equity to total assets		9.53	%		8.15	%
Allowance to total loans receivable		1.17	%		1.08	%
Nonperforming loans to total loans		0.45	%		0.47	%
Nonperforming assets to total assets		0.34	%		0.34	%

NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars in thousands)
		June 30			March 31			December 31			September 30			June 30
		2025			2025			2024			2024			2024
ASSETS
Cash and due from banks	$	32,052		$	31,729		$	27,562		$	47,072		$	29,903
Interest-bearing deposits with banks		20,993			43,678			44,777			35,808			39,492
Cash and cash equivalents		53,045			75,407			72,339			82,880			69,395

Securities available for sale		402,460			408,742			397,846			396,891			397,578
Loans receivable		1,790,574			1,771,269			1,713,638			1,675,139			1,641,356
Less: Allowance for credit losses		20,908			20,442			19,843			18,699			17,807
Net loans receivable		1,769,666			1,750,827			1,693,795			1,656,440			1,623,549
Regulatory stock, at cost		7,538			7,616			13,366			6,329			6,443
Bank owned life insurance		46,099			46,914			46,657			46,382			46,121
Bank premises and equipment, net		21,608			20,273			19,657			18,503			18,264
Foreclosed real estate owned		–			–			–			–			–
Goodwill and other intangibles		29,387			29,402			29,418			29,433			29,449
Other assets		35,547			36,863			44,384			42,893			44,517
TOTAL ASSETS	$	2,365,350		$	2,376,044		$	2,317,462		$	2,279,751		$	2,235,316

LIABILITIES
Deposits:
Non-interest bearing demand	$	406,358		$	391,377		$	381,479		$	420,967		$	391,849
Interest-bearing deposits		1,591,476			1,613,071			1,477,684			1,434,284			1,419,323
Total deposits		1,997,834			2,004,448			1,859,163			1,855,251			1,811,172
Borrowings		111,850			118,590			214,862			197,412			210,422
Other liabilities		30,241			32,299			29,929			31,434			31,534
TOTAL LIABILITIES		2,139,925			2,155,337			2,103,954			2,084,097			2,053,128

STOCKHOLDERS’ EQUITY		225,425			220,707			213,508			195,654			182,188

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	2,365,350		$	2,376,044		$	2,317,462		$	2,279,751		$	2,235,316



NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
		June 30			March 31			December 31			September 30			June 30
Three months ended		2025			2025			2024			2024			2024
INTEREST INCOME
Loans receivable, including fees	$	27,115		$	25,988		$	26,122		$	25,464		$	24,121
Securities		3,871			3,870			2,789			2,526			2,584
Other		220			226			574			497			966
Total interest income		31,206			30,084			29,485			28,487			27,671

INTEREST EXPENSE
Deposits		10,869			10,748			10,984			10,553			10,687
Borrowings		1,272			1,479			1,876			2,003			2,059
Total interest expense		12,141			12,227			12,860			12,556			12,746
NET INTEREST INCOME		19,065			17,857			16,625			15,931			14,925
PROVISION FOR (RELEASE OF) CREDIT LOSSES		950			857			1,604			1,345			347
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION
FOR CREDIT LOSSES		18,115			17,000			15,021			14,586			14,578

OTHER INCOME
Service charges and fees		1,514			1,513			1,595			1,517			1,504
Income from fiduciary activities		226			325			224			256			225
Net realized (losses) gains on sales of securities		–			–			(19,962	)		–			–
Gains on sales of loans, net		65			47			50			103			36
Gains on sales of foreclosed real estate owned		–			–			–			–			32
Earnings and proceeds on life insurance policies		266			286			275			261			253
Other		177			180			159			158			157
Total other income		2,248			2,351			(17,659	)		2,295			2,207

OTHER EXPENSES
Salaries and employee benefits		6,605			6,472			6,690			6,239			5,954
Occupancy, furniture and equipment, net		2,538			1,378			1,291			1,269			1,229
Foreclosed real estate		137			4			9			9			15
FDIC insurance assessment		355			406			335			339			309
Other		2,896			3,804			5,094			4,175			3,937
Total other expenses		12,531			12,064			13,419			12,031			11,444

INCOME BEFORE TAX (BENEFIT) EXPENSE		7,832			7,287			(16,057	)		4,850			5,341
INCOME TAX (BENEFIT) EXPENSE		1,627			1,514			(3,406	)		1,006			1,128
NET (LOSS) INCOME	$	6,205		$	5,773		$	(12,651	)	$	3,844		$	4,213

Basic (loss) earnings per share	$	0.67		$	0.63		$	(1.54	)	$	0.48		$	0.52

Diluted (loss) earnings per share	$	0.67		$	0.63		$	(1.54	)	$	0.48		$	0.52

Book Value per share	$	24.34		$	23.84		$	23.02		$	24.18		$	22.52
Tangible Book Value per share		21.17			20.66			19.85			20.54			18.88

Return on average assets (annualized)		1.06	%		1.01	%		-2.19	%		0.68	%		0.75	%
Return on average equity (annualized)		11.14	%		10.73	%		-26.08	%		8.09	%		9.44	%
Return on average tangible equity (annualized)		12.83	%		12.40	%		-30.77	%		9.58	%		11.29	%

Net interest spread (fte)		2.75	%		2.61	%		2.31	%		2.23	%		2.06	%
Net interest margin (fte)		3.43	%		3.30	%		3.04	%		2.99	%		2.80	%

Allowance for credit losses to total loans		1.17	%		1.15	%		1.16	%		1.12	%		1.08	%
Net charge-offs to average loans (annualized)		0.08	%		0.07	%		0.12	%		0.08	%		0.13	%
Nonperforming loans to total loans		0.45	%		0.45	%		0.46	%		0.47	%		0.47	%
Nonperforming assets to total assets		0.34	%		0.33	%		0.34	%		0.35	%		0.34	%

The MIL Network –

July 23, 2025

MIL-OSI: Range Announces Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

FORT WORTH, Texas, July 22, 2025 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2025 financial results.

Second Quarter 2025 Highlights –

Cash flow from operating activities of $336 million
Cash flow from operations, before working capital changes, of $301 million
Repurchased $53 million of shares, paid $21 million in dividends, and reduced net debt to $1.2 billion
Capital spending was $154 million, approximately 23% of the annual 2025 budget
Realized price, including hedges, was $3.49 per mcfe
Natural gas differential, including basis hedging, of ($0.50) per mcf to NYMEX
Pre-hedge NGL realizations of $23.73 per barrel – a premium of $0.61 over Mont Belvieu equivalent
Production averaged 2.20 Bcfe per day, approximately 68% natural gas
Improved 2025 production guidance and increased expected lateral footage in year-end inventory, while lowering 2025 capital due to operational efficiencies.

Commenting on the results, Dennis Degner, the Company’s CEO said, “This year is off to a great start with another quarter of efficiency gains and consistent well performance driving strong free cash flow and building operational momentum. Our strong financial results supported $74 million in share repurchases and dividends, while lowering net debt to $1.2 billion. We believe Range is well positioned to benefit as in-basin demand opportunities materialize alongside a global call on natural gas. Range is one of the few producers in Appalachia with sufficient high-quality inventory to support the required growth in baseload supply. Further, Range’s continued efficiencies are supported by our countercyclical investments in drilled inventory over the last 18 months and consistent well results. Importantly, we intend to help meet future demand increases while also returning significant capital to shareholders.”

Financial Discussion

Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of non-GAAP financial measures and the accompanying tables that reconcile each non-GAAP measure to its most directly comparable GAAP financial measure.

Second Quarter 2025 Results

GAAP revenues and other income for second quarter 2025 totaled $856 million, GAAP net cash provided from operating activities (including changes in working capital) was $336 million, and GAAP net income was $238 million ($0.99 per diluted share). Second quarter earnings results include a $155 million mark-to-market derivative gain due to decreases in commodity prices.

Cash flow from operations before changes in working capital, a non-GAAP measure, was $301 million. Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $158 million ($0.66 per diluted share) in second quarter 2025.

The following table details Range’s second quarter 2025 unit costs per mcfe^(a):

Expenses	2Q 2025 (per mcfe)		2Q 2024 (per mcfe)		Increase (Decrease)

Direct operating^(a)	$	0.11	$	0.11	0	%
Transportation, gathering, processing and compression^(a)		1.52		1.44	6	%
Taxes other than income		0.04		0.03	33	%
General and administrative^(a)		0.16		0.16	0	%
Interest expense^(a)		0.13		0.14	(7	%)
Total cash unit costs^(b)		1.97		1.88	5	%
Depletion, depreciation and amortization (DD&A)		0.46		0.45	2	%
Total unit costs plus DD&A^(b)	$	2.43	$	2.33	4	%

(a) Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
(b) Totals may not be exact due to rounding.

The following table details Range’s average production and realized pricing for second quarter 2025^(a):

	2Q25 Production & Realized Pricing
		Natural Gas (mcf)			Oil (bbl)			NGLs (bbl)		Natural Gas Equivalent (mcfe)
		Natural Gas (mcf)			Oil (bbl)			NGLs (bbl)		Natural Gas Equivalent (mcfe)

Net production per day			1,497,771			6,382			110,209		2,197,321

Average NYMEX price		$	3.44		$	63.72		$	23.12
Differential, including basis hedging			(0.50	)		(10.95	)		0.61
Realized prices before NYMEX hedges			2.94			52.77			23.73		3.35
Settled NYMEX hedges			0.19			1.45			0.15		0.14
Average realized prices after hedges		$	3.13		$	54.22		$	23.88	$	3.49

(a) Totals may not be exact due to rounding

Second quarter 2025 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.49 per mcfe.

The average natural gas price, including the impact of basis hedging, was $2.94 per mcf, or a ($0.50) per mcf differential to NYMEX. Range continues to expect its 2025 natural gas differential to average ($0.40) to ($0.48) relative to NYMEX.
Range’s pre-hedge NGL price during the quarter was $23.73 per barrel, approximately $0.61 above the Mont Belvieu weighted equivalent. Range is improving its expected 2025 NGL differential to average +$0.40 to +$1.25 relative to a Mont Belvieu equivalent barrel.
Crude oil and condensate price realizations, before realized hedges, averaged $52.77 per barrel, or $10.95 below WTI (West Texas Intermediate). Range continues to expect its 2025 condensate differential to average ($10.00) to ($15.00) relative to NYMEX.

Repurchase Activity and Financial Position

During the second quarter, Range repurchased 1,453,438 shares at an average price of approximately $36.35 per share. As of June 30, 2025, the Company had approximately $900 million of availability under the share repurchase program.

In May 2025, Range paid off the remaining principal balance of its 4.875% senior notes due 2025 at par by utilizing cash on hand and by borrowing on the bank credit facility. As of June 30, 2025, Range had net debt outstanding of approximately $1.22 billion, consisting of $1.1 billion of senior notes, $125 million on the facility, and $0.1 million in cash.

Capital Expenditures and Operational Activity

Second quarter 2025 drilling and completion expenditures were $136 million. In addition, during the quarter, approximately $11 million was invested in acreage, and $7 million was invested in infrastructure, pneumatic devices, and other investments. Year-to-date capital investments of $301 million are approximately $10 million below plan as a result of operational efficiencies. As a result, Range is lowering the high-end of its 2025 capital guide to $680 million.

During the quarter, Range drilled ~285,000 lateral feet across 20 wells, while turning to sales ~156,000 lateral feet across 12 wells. The added inventory of drilled but not completed laterals places Range on track to exit 2025 with greater than 400,000 lateral feet of growth inventory to support future development.

The table below summarizes expected 2025 activity plans regarding the number of wells to sales in each area.

	Wells TIL 1H 2025	Remaining 2025	2025 Planned TIL
SW PA Super-Rich	5	3	8
SW PA Wet	17	12	29
SW PA Dry	0	5	5
NE PA Dry	0	4	4
Total Wells	22	24	46

Guidance – 2025

Updated Capital & Production Guidance

Range’s 2025 all-in capital budget is now $650 million – $680 million, improved from prior guidance of $650 million – $690 million. Annual production is now expected to be approximately 2.225 Bcfe per day in 2025, updated from prior guidance of ~2.2 Bcfe per day. Liquids are expected to be over 30% of production.

Updated Full Year 2025 Expense Guidance

	Updated Guidance	Prior Guidance
Direct operating expense:	$0.12 – $0.13 per mcfe	$0.12 – $0.14 per mcfe
Transportation, gathering, processing and compression expense:	$1.50 – $1.55 per mcfe	$1.50 – $1.55 per mcfe
Taxes other than income:	$0.03 – $0.04 per mcfe	$0.03 – $0.04 per mcfe
Exploration expense:	$24 – $28 million	$24 – $28 million
G&A expense:	$0.17 – $0.18 per mcfe	$0.17 – $0.19 per mcfe
Net Interest expense:	$0.12 – $0.13 per mcfe	$0.12 – $0.13 per mcfe
DD&A expense:	$0.45 – $0.46 per mcfe	$0.45 – $0.46 per mcfe
Net brokered gas marketing expense:	$8 – $12 million	$8 – $12 million

Updated Full Year 2025 Price Guidance

Based on recent market indications, Range expects to average the following price differentials for its production in 2025.

	Updated Guidance	Prior Guidance
FY 2025 Natural Gas:⁽¹⁾	NYMEX minus $0.40 to $0.48	NYMEX minus $0.40 to $0.48
FY 2025 Natural Gas Liquids:⁽²⁾	MB plus $0.40 to $1.25 per barrel	MB plus $0.25 to $1.25 per barrel
FY 2025 Oil/Condensate:	WTI minus $10.00 to $15.00	WTI minus $10.00 to $15.00

(1) Including basis hedging
(2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

Hedging Status

Range hedges portions of its expected future production volumes to increase the predictability of cash flow and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations – Financial Information.

Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of June 30, 2025, was a net gain of $19.9 million.

Conference Call Information

A conference call to review the financial results is scheduled on Wednesday, July 23 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company’s website until August 23^rd.

Non-GAAP Financial Measures

To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles (GAAP), the Company’s earnings press release contains certain financial measures that are not presented in accordance with GAAP. Management believes certain non-GAAP measures may provide financial statement users with meaningful supplemental information for comparisons within the industry. These non-GAAP financial measures may include, but are not limited to Net Income, excluding certain items, Cash flow from operations before changes in working capital, realized prices, Net debt and Cash margin.

Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods.

Cash flow from operations before changes in working capital represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

Net debt is calculated as total debt less cash and cash equivalents. The Company believes this measure is helpful to investors and industry analysts who utilize Net debt for comparative purposes across the industry.

The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.

We believe that the presentation of PV₁₀ value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV₁₀ is based on prices and discount factors that are consistent for all companies. Because of this, PV₁₀ can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas. More information about Range can be found at www.rangeresources.com.

Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events. Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.

SOURCE: Range Resources Corporation

Range Investor Contacts:

Laith Sando
817-869-4267

Matt Schmid
817-869-1538

Range Media Contact:

Mark Windle
724-873-3223

RANGE RESOURCES CORPORATION


STATEMENTS OF OPERATIONS
Based on GAAP reported earnings with additional
details of items included in each line in Form 10-Q
(Unaudited, In thousands, except per share data)
	Three Months Ended June 30,									Six Months Ended June 30,
	2025			2024			%			2025			2024			%
Revenues and other income:
Natural gas, NGLs and oil sales (a)	$	666,638		$	478,450					$	1,458,558		$	1,045,451
Derivative fair value income (loss)		154,747			16,808						(4,210	)		63,406
Brokered natural gas and marketing		33,009			31,393						87,417			60,224
ARO settlement gain (loss) (b)		1			–						1			(26	)
Interest income (b)		1,762			3,376						4,815			6,319
Gain on sale of assets (b)		102			66						164			153
Other (b)		16			16						84			38
Total revenues and other income		856,275			530,109			62	%		1,546,829			1,175,565			32	%

Costs and expenses:
Direct operating		22,616			22,281						47,452			43,945
Direct operating – stock-based compensation (c)		504			471						1,041			968
Transportation, gathering, processing and compression		304,714			281,495						610,823			572,370
Taxes other than income		7,835			4,974						14,822			10,342
Brokered natural gas and marketing		34,183			33,513						91,544			64,408
Brokered natural gas and marketing – stock-based compensation (c)		802			583						1,642			1,291
Exploration		7,562			6,316						13,606			10,518
Exploration – stock-based compensation (c)		366			335						713			659
Abandonment and impairment of unproved properties		6,781			1,524						11,355			3,895
General and administrative		32,757			31,372						64,310			65,144
General and administrative – stock-based compensation (c)		9,326			8,482						19,437			18,460
General and administrative – lawsuit settlements		63			287						90			478
Exit costs		8,502			10,094						17,399			20,409
Deferred compensation plan (d)		(88	)		1,240						2,791			7,645
Interest expense		25,630			28,356						53,415			57,472
Interest expense – amortization of deferred financing costs (e)		1,166			1,357						2,542			2,717
Gain on early extinguishment of debt		–			(179	)					(3	)		(243	)
Depletion, depreciation and amortization		91,514			87,598						182,073			174,735
Total costs and expenses		554,233			520,099			7	%		1,135,052			1,055,213			8	%

Income before income taxes		302,042			10,010			2917	%		411,777			120,352			242	%

Income tax expense (benefit)
Current		4,645			2,399						6,645			3,981
Deferred		59,819			(21,093	)					70,502			(4,471	)
		64,464			(18,694	)					77,147			(490	)

Net income	$	237,578		$	28,704			728	%	$	334,630		$	120,842			177	%


Net income Per Common Share
Basic	$	0.99		$	0.12					$	1.40		$	0.50
Diluted	$	0.99		$	0.12					$	1.39		$	0.49

Weighted average common shares outstanding, as reported
Basic		238,187			241,125			-1	%		239,106			240,815			-1	%
Diluted		239,717			242,983			-1	%		240,772			242,766			-1	%


(a) See separate natural gas, NGLs and oil sales information table.
(b) Included in Other income in the 10-Q.
(c) Costs associated with stock compensation and restricted stock amortization, which have been reflected
in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.
(d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.
(e) Included in interest expense in the 10-Q.

RANGE RESOURCES CORPORATION


BALANCE SHEET
(In thousands)	June 30,			December 31,
	2025			2024
	(Unaudited)			(Audited)
Assets
Current assets	$	272,616		$	636,982
Derivative assets		51,115			87,098
Natural gas and oil properties, net (successful efforts method)		6,535,097			6,421,700
Other property and equipment, net		2,736			2,465
Operating lease right-of-use assets		170,159			119,838
Other		73,388			79,592
	$	7,105,111		$	7,347,675

Liabilities and Stockholders’ Equity
Current liabilities	$	580,744		$	1,263,247
Asset retirement obligations		1,189			1,189
Derivative liabilities		1,201			9,634

Bank debt		121,092			–
Senior notes, excluding current maturities		1,090,607			1,089,614
Deferred tax liabilities		611,873			541,378
Derivative liabilities		23,187			10,488
Deferred compensation liabilities		64,262			65,233
Operating lease liabilities		109,026			35,737
Asset retirement obligations and other liabilities		143,174			137,181
Divestiture contract obligation		232,062			257,317
		2,978,417			3,411,018

Common stock and retained deficit		4,761,293			4,449,987
Other comprehensive income		582			611
Common stock held in treasury		(635,181	)		(513,941	)
Total stockholders’ equity		4,126,694			3,936,657
	$	7,105,111		$	7,347,675

RECONCILIATION OF TOTAL DEBT AS REPORTED
TO NET DEBT, a non-GAAP measure
(Unaudited, in thousands)
	June 30,			December 31,
	2025			2024			%

Total debt, net of deferred financing costs, as reported	$	1,211,699		$	1,697,883			-29	%
Unamortized debt issuance costs, as reported		13,301			10,819
Less cash and cash equivalents, as reported		(134	)		(304,490	)
Net debt, a non-GAAP measure	$	1,224,866		$	1,404,212			-13	%

RANGE RESOURCES CORPORATION



CASH FLOWS FROM OPERATING ACTIVITIES
(Unaudited, in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024

Net income	$	237,578		$	28,704		$	334,630		$	120,842
Adjustments to reconcile net cash provided from continuing operations:
Deferred income tax expense (benefit)		59,819			(21,093	)		70,502			(4,471	)
Depletion, depreciation and amortization		91,514			87,598			182,073			174,735
Abandonment and impairment of unproved properties		6,781			1,524			11,355			3,895
Derivative fair value (income) loss		(154,747	)		(16,808	)		4,210			(63,406	)
Cash settlements on derivative financial instruments		31,466			128,057			36,039			250,430
Divestiture contract obligation, including accretion		8,502			10,062			17,399			20,329
Amortization of deferred financing costs and other		962			1,193			2,144			2,425
Deferred and stock-based compensation		11,047			11,122			26,130			29,337
Gain on sale of assets		(102	)		(66	)		(164	)		(153	)
Loss (gain) on early extinguishment of debt		–			(179	)		(3	)		(243	)

Changes in working capital:
Accounts receivable		96,785			(30,541	)		68,064			76,913
Other current assets		518			(13,461	)		(8,510	)		(22,405	)
Accounts payable		(27,023	)		(17,906	)		9,158			(5,718	)
Accrued liabilities and other		(26,912	)		(19,431	)		(86,754	)		(101,805	)
Net changes in working capital		43,368			(81,339	)		(18,042	)		(53,015	)
Net cash provided from operating activities	$	336,188		$	148,775		$	666,273		$	480,705



RECONCILIATION OF NET CASH PROVIDED FROM OPERATING
ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS
BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure
(Unaudited, in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Net cash provided from operating activities, as reported	$	336,188		$	148,775		$	666,273		$	480,705
Net changes in working capital		(43,368	)		81,339			18,042			53,015
Exploration expense		7,562			6,316			13,606			10,518
Lawsuit settlements		63			287			90			478
Non-cash compensation adjustment and other		66			185			(109	)		84
Cash flow from operations before changes in working capital – non-GAAP measure	$	300,511		$	236,902		$	697,902		$	544,800



ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING
(Unaudited, in thousands)
	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Basic:
Weighted average shares outstanding		238,804			242,647			239,785			242,365
Stock held by deferred compensation plan		(617	)		(1,522	)		(679	)		(1,550	)
Adjusted basic		238,187			241,125			239,106			240,815

Dilutive:
Weighted average shares outstanding		238,804			242,647			239,785			242,365
Dilutive stock options under treasury method		913			336			987			401
Adjusted dilutive		239,717			242,983			240,772			242,766

RANGE RESOURCES CORPORATION


RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES
AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO
CALCULATED CASH REALIZED NATURAL GAS, NGLs AND
OIL PRICES WITH AND WITHOUT THIRD-PARTY
TRANSPORTATION, GATHERING, PROCESSING AND
COMPRESSION COSTS, a non-GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended June 30,									Six Months Ended June 30,
	2025			2024			%			2025			2024			%
Natural gas, NGLs and Oil Sales components:
Natural gas sales	$	397,955		$	209,652					$	888,332		$	481,127
NGLs sales		238,034			228,285						513,688			484,361
Oil sales		30,649			40,513						56,538			79,963
Total Natural Gas, NGLs and Oil Sales, as reported	$	666,638		$	478,450			39	%	$	1,458,558		$	1,045,451			40	%

Derivative Fair Value Income (Loss), as reported	$	154,747		$	16,808					$	(4,210	)	$	63,406
Cash settlements on derivative financial instruments – (gain) loss:
Natural gas		(29,114	)		(126,194	)					(33,843	)		(247,107	)
NGLs		(1,508	)		(1,978	)					(1,096	)		(1,901	)
Oil		(844	)		115						(1,100	)		(1,422	)
Total change in fair value related to commodity derivatives prior to
settlement, a non-GAAP measure	$	123,281		$	(111,249	)				$	(40,249	)	$	(187,024	)

Transportation, gathering, processing and compression components:
Natural Gas	$	154,704		$	153,040					$	312,223		$	303,152
NGLs		149,209			128,077						297,047			268,351
Oil		801			378						1,553			867
Total transportation, gathering, processing and compression, as reported	$	304,714		$	281,495					$	610,823		$	572,370

Natural gas, NGL and Oil sales, including cash-settled derivatives: (c)
Natural gas sales	$	427,069		$	335,846					$	922,175		$	728,234
NGLs sales		239,542			230,263						514,784			486,262
Oil Sales		31,493			40,398						57,638			81,385
Total	$	698,104		$	606,507			15	%	$	1,494,597		$	1,295,881			15	%

Production of natural gas, NGLs and oil during the periods (a):
Natural Gas (mcf)		136,297,159			136,099,063			0	%		272,260,589			268,749,303			1	%
NGLs (bbls)		10,029,051			9,376,810			7	%		19,949,040			19,137,533			4	%
Oil (bbls)		580,791			593,020			-2	%		1,004,370			1,203,299			-17	%
Gas equivalent (mcfe) (b)		199,956,211			195,918,043			2	%		397,981,049			390,794,295			2	%

Production of natural gas, NGLs and oil – average per day (a):
Natural Gas (mcf)		1,497,771			1,495,594			0	%		1,504,202			1,476,645			2	%
NGLs (bbls)		110,209			103,042			7	%		110,216			105,151			5	%
Oil (bbls)		6,382			6,517			-2	%		5,549			6,612			-16	%
Gas equivalent (mcfe) (b)		2,197,321			2,152,946			2	%		2,198,790			2,147,221			2	%

Average prices, excluding derivative settlements and before third-party
transportation costs:
Natural Gas (per mcf)	$	2.92		$	1.54			90	%	$	3.26		$	1.79			82	%
NGLs (per bbl)	$	23.73		$	24.35			-3	%	$	25.75		$	25.31			2	%
Oil (per bbl)	$	52.77		$	68.32			-23	%	$	56.29		$	66.45			-15	%
Gas equivalent (per mcfe) (b)	$	3.33		$	2.44			36	%	$	3.66		$	2.68			37	%

Average prices, including derivative settlements before third-party
transportation costs: (c)
Natural Gas (per mcf)	$	3.13		$	2.47			27	%	$	3.39		$	2.71			25	%
NGLs (per bbl)	$	23.88		$	24.56			-3	%	$	25.80		$	25.41			2	%
Oil (per bbl)	$	54.22		$	68.12			-20	%	$	57.39		$	67.63			-15	%
Gas equivalent (per mcfe) (b)	$	3.49		$	3.10			13	%	$	3.75		$	3.32			13	%

Average prices, including derivative settlements and after third-party
transportation costs: (d)
Natural Gas (per mcf)	$	2.00		$	1.34			49	%	$	2.24		$	1.58			42	%
NGLs (per bbl)	$	9.01		$	10.90			-17	%	$	10.91		$	11.39			-4	%
Oil (per bbl)	$	52.84		$	67.48			-22	%	$	55.84		$	66.91			-17	%
Gas equivalent (per mcfe) (b)	$	1.97		$	1.66			19	%	$	2.22		$	1.85			20	%

Transportation, gathering and compression expense per mcfe	$	1.52		$	1.44			6	%	$	1.53		$	1.47			4	%

(a) Represents volumes sold regardless of when produced.
(b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily
indicative of the relationship of oil and natural gas prices.
(c) Excluding third-party transportation, gathering, processing and compression costs.
(d) Net of transportation, gathering, processing and compression costs.

RANGE RESOURCES CORPORATION



RECONCILIATION OF INCOME BEFORE INCOME
TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES
EXCLUDING CERTAIN ITEMS, a non-GAAP measure
(Unaudited, In thousands, except per share data)
	Three Months Ended June 30,									Six Months Ended June 30,
	2025			2024			%			2025			2024			%

Income from operations before income taxes, as reported	$	302,042		$	10,010			2917	%	$	411,777		$	120,352			242	%
Adjustment for certain special items:
Gain on the sale of assets		(102	)		(66	)					(164	)		(153	)
ARO settlement (gain) loss		(1	)		–						(1	)		26
Change in fair value related to derivatives prior to settlement		(123,281	)		111,249						40,249			187,024
Abandonment and impairment of unproved properties		6,781			1,524						11,355			3,895
Loss (gain) on early extinguishment of debt		–			(179	)					(3	)		(243	)
Lawsuit settlements		63			287						90			478
Exit costs		8,502			10,094						17,399			20,409
Brokered natural gas and marketing – stock-based compensation		802			583						1,642			1,291
Direct operating – stock-based compensation		504			471						1,041			968
Exploration expenses – stock-based compensation		366			335						713			659
General & administrative – stock-based compensation		9,326			8,482						19,437			18,460
Deferred compensation plan – non-cash adjustment		(88	)		1,240						2,791			7,645

Income before income taxes, as adjusted		204,914			144,030			42	%		506,326			360,811			40	%

Income tax expense, as adjusted
Current		4,645			2,399						6,645			3,981
Deferred (a)		42,485			30,728						109,810			79,006

Net income, excluding certain items, a non-GAAP measure	$	157,784		$	110,903			42	%	$	389,871		$	277,824			40	%

Non-GAAP income per common share
Basic	$	0.66		$	0.46			43	%	$	1.63		$	1.15			42	%
Diluted	$	0.66		$	0.46			43	%	$	1.62		$	1.14			42	%

Non-GAAP diluted shares outstanding, if dilutive		239,717			242,983						240,772			242,766



(a) Taxes are estimated to be approximately 23% for 2024 and 2025

RANGE RESOURCES CORPORATION



RECONCILIATION OF NET INCOME, EXCLUDING
CERTAIN ITEMS AND ADJUSTED EARNINGS PER
SHARE, non-GAAP measures
(In thousands, except per share data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024

Net income, as reported	$	237,578		$	28,704		$	334,630		$	120,842
Adjustments for certain special items:
Gain on the sale of assets		(102	)		(66	)		(164	)		(153	)
ARO settlement (gain) loss		(1	)		–			(1	)		26
Gain on early extinguishment of debt		–			(179	)		(3	)		(243	)
Change in fair value related to derivatives prior to settlement		(123,281	)		111,249			40,249			187,024
Abandonment and impairment of unproved properties		6,781			1,524			11,355			3,895
Lawsuit settlements		63			287			90			478
Exit costs		8,502			10,094			17,399			20,409
Stock-based compensation		10,998			9,871			22,833			21,378
Deferred compensation plan		(88	)		1,240			2,791			7,645
Tax impact		17,334			(51,821	)		(39,308	)		(83,477	)

Net income, excluding certain items, a non-GAAP measure	$	157,784		$	110,903		$	389,871		$	277,824

Net income per diluted share, as reported	$	0.99		$	0.12		$	1.39		$	0.49
Adjustments for certain special items per diluted share:
Gain on the sale of assets		–			–			–			–
ARO settlement (gain) loss		–			–			–			–
Gain on early extinguishment of debt		–			–			–			–
Change in fair value related to derivatives prior to settlement		(0.51	)		0.46			0.17			0.77
Abandonment and impairment of unproved properties		0.03			0.01			0.05			0.02
Lawsuit settlements		–			–			–			–
Exit costs		0.04			0.04			0.07			0.08
Stock-based compensation		0.05			0.04			0.09			0.09
Deferred compensation plan		–			0.01			0.01			0.03
Adjustment for rounding differences		(0.01	)		(0.01	)		–			–
Tax impact		0.07			(0.21	)		(0.16	)		(0.34	)
Dilutive share impact (rabbi trust and other)		–			–			–			–

Net income per diluted share, excluding certain items, a non-GAAP measure	$	0.66		$	0.46		$	1.62		$	1.14

Adjusted earnings per share, a non-GAAP measure:
Basic	$	0.66		$	0.46		$	1.63		$	1.15
Diluted	$	0.66		$	0.46		$	1.62		$	1.14

RANGE RESOURCES CORPORATION


RECONCILIATION OF CASH MARGIN PER MCFE, a non-
GAAP measure
(Unaudited, In thousands, except per unit data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024

Revenues
Natural gas, NGLs and oil sales, as reported	$	666,638		$	478,450		$	1,458,558		$	1,045,451
Derivative fair value income (loss), as reported		154,747			16,808			(4,210	)		63,406
Less non-cash fair value (gain) loss		(123,281	)		111,249			40,249			187,024
Brokered natural gas and marketing, as reported		33,009			31,393			87,417			60,224
Other income, as reported		1,881			3,458			5,064			6,484
Less gain on sale of assets		(102	)		(66	)		(164	)		(153	)
Less ARO settlement		(1	)		–			(1	)		26
Cash revenues		732,891			641,292			1,586,913			1,362,462

Expenses
Direct operating, as reported		23,120			22,752			48,493			44,913
Less direct operating stock-based compensation		(504	)		(471	)		(1,041	)		(968	)
Transportation, gathering and compression, as reported		304,714			281,495			610,823			572,370
Taxes other than income, as reported		7,835			4,974			14,822			10,342
Brokered natural gas and marketing, as reported		34,985			34,096			93,186			65,699
Less brokered natural gas and marketing stock-based compensation		(802	)		(583	)		(1,642	)		(1,291	)
General and administrative, as reported		42,146			40,141			83,837			84,082
Less G&A stock-based compensation		(9,326	)		(8,482	)		(19,437	)		(18,460	)
Less lawsuit settlements		(63	)		(287	)		(90	)		(478	)
Interest expense, as reported		26,796			29,713			55,957			60,189
Less amortization of deferred financing costs		(1,166	)		(1,357	)		(2,542	)		(2,717	)
Cash expenses		427,735			401,991			882,366			813,681

Cash margin, a non-GAAP measure	$	305,156		$	239,301		$	704,547		$	548,781

Mmcfe produced during period		199,956			195,918			397,981			390,794

Cash margin per mcfe	$	1.53		$	1.22		$	1.77		$	1.40

RECONCILIATION OF INCOME BEFORE INCOME TAXES
TO CASH MARGIN, a non-GAAP measure
(Unaudited, in thousands, except per unit data)
	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024

Income before income taxes, as reported	$	302,042		$	10,010		$	411,777		$	120,352
Adjustments to reconcile income before income taxes
to cash margin:
ARO settlements		(1	)		–			(1	)		26
Derivative fair value (income) loss		(154,747	)		(16,808	)		4,210			(63,406	)
Net cash receipts on derivative settlements		31,466			128,057			36,039			250,430
Exploration expense		7,562			6,316			13,606			10,518
Lawsuit settlements		63			287			90			478
Exit costs		8,502			10,094			17,399			20,409
Deferred compensation plan		(88	)		1,240			2,791			7,645
Stock-based compensation (direct operating, brokered natural gas and		10,998			9,871			22,833			21,378
marketing and general and administrative)
Bad debt expense		–			–			–			–
Interest – amortization of deferred financing costs		1,166			1,357			2,542			2,717
Depletion, depreciation and amortization		91,514			87,598			182,073			174,735
Gain on sale of assets		(102	)		(66	)		(164	)		(153	)
Gain on early extinguishment of debt		–			(179	)		(3	)		(243	)
Abandonment and impairment of unproved properties		6,781			1,524			11,355			3,895
Cash margin, a non-GAAP measure	$	305,156		$	239,301		$	704,547		$	548,781

The MIL Network –

July 23, 2025

MIL-Evening Report: Central bank independence and credibility matters. Here’s why

Source: The Conversation (Au and NZ) – By John Simon, Adjunct Fellow in Economics, Macquarie University

Olga Kashubin/Shutterstock

In the United States, President Donald Trump has been pressuring the chairman of the US Federal Reserve, Jerome Powell, to slash interest rates. This is partly to ease the interest payments on the ballooning US government debt.

Powell has so far resisted, but Trump has also threatened to replace him with someone who will do what he asks.

In Australia, after the Reserve Bank’s surprise decision to hold interest rates steady this month, some commentators have wondered if the central bank had “betrayed” Australians. Treasurer Jim Chalmers pointedly remarked:

It’s not the result millions of Australians were hoping for or what the market was expecting.

On Tuesday, the Reserve Bank released the minutes of that controversial policy-setting meeting, which said some economic data was slightly stronger than expected. The majority of the board believed:

lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner.

Can’t rates just be kept low?

Wouldn’t we be better off if central banks kept interest rates low, as some politicians and borrowers were hoping for? It would certainly help those of us with mortgages.

Surprisingly, the answer is no.

We are better off when central banks set interest rates with a view on the longer run rather than just the short-term demands of politicians and borrowers.

To see why we can look at history to see what happens when a central bank isn’t independent.

Why does independence matter?

In the 1970s the chairman of the US Federal Reserve, Arthur Burns, was pressured to cut interest rates in the run-up to the 1972 election. He dutifully did so and, while President Richard Nixon was re-elected, this led to “stagflation” – with inflation, unemployment and even interest rates, higher than before interest rates were cut.

A more recent example of political pressure can be seen in Turkey where the president pressured the central bank to cut interest rates. He hoped to stimulate the economy and believed higher interest rates caused higher inflation.

Unfortunately, lower rates were shortly followed by higher inflation and, ultimately, much higher interest rates.

And today in the US, even though Powell has so far resisted Trump’s pressure, financial markets are shaken and long-term interest rates go up when Trump talks about replacing him.

Lower interest rates can be like a caffeinated energy drink – they give you a short-term energy boost, but can leave you tired, irritable and with a headache when the effects wear off.

So, why does this happen? It’s all about expectations.

Expectations about the future matter

A central bank influences the economy both through what it does and what people expect it to do. The ability to shape expectations is a powerful tool for central banks, especially during crises such as the COVID pandemic, when official interest rates were close to zero.

Imagine, for example, you are about to take out a mortgage. In making this decision you will likely think not just about current interest rates and your ability to make repayments, but what is likely to happen to future interest rates, your wages and inflation.

Credibility is the key to successfully shaping people’s expectations. If a central bank is independent and credible, consumers and businesses will listen to what it says and adjust their expectations accordingly.

The chart below illustrates this point.

Macquarie University’s Business Outlook Scenarios Survey asks businesses if they believe the Reserve Bank will meet its inflation goals. Those that do trust the bank (the line labelled “certain”) have lower inflation expectations than those that don’t (the line labelled “uncertain”).

Importantly, the expectations of those that trust the bank to meet its inflation goals tend to align with the bank’s 2–3% inflation target over the business cycle.

And these expectations affect what businesses and consumers do today.

So, how credible is the Reserve Bank today?

Despite the surprise hold, Australians still trust the RBA

Data from the Business Outlook Scenarios Survey shows the Reserve Bank has rebuilt its credibility since its 2021 “promise” not to raise interest rates until 2024. It has done this by reforming its board structure and membership, being more open and, most critically, by hitting the inflation target.

Indeed, the most recent survey data shows that, if anything, the surprise decision increased people’s confidence in the bank’s ability to control inflation.

In July, the survey was in the field between July 7 and 10. The Reserve Bank made its announcement on July 8. Out of 512 businesses surveyed, 368 completed it before the announcement and 144 completed it after the announcement.

Overall, more than 40% of businesses surveyed were certain the Reserve Bank will achieve its inflation target. This is up from less than 10% a year ago. And, those who completed the survey after the announcement were more likely to trust the Reserve Bank than those that who completed it before the announcement.

So next time you hear politicians and commentators calling for immediate interest rate cuts, you should hope the Reserve Bank ignores those calls and focuses on the longer term. Overseas experience shows things do not end well when politicians start determining interest rates.

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Central bank independence and credibility matters. Here’s why – https://theconversation.com/central-bank-independence-and-credibility-matters-heres-why-260198

MIL OSI Analysis – EveningReport.nz –

July 23, 2025

MIL-OSI: First Community Bankshares, Inc. Announces Second Quarter 2025 Results and Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

BLUEFIELD, Va., July 22, 2025 (GLOBE NEWSWIRE) — First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”) today reported its unaudited results of operations and other financial information for the quarter ended June 30, 2025. The Company reported net income of $12.25 million, or $0.67 per diluted common share, for the quarter ended June 30, 2025. Net income for the six months ended June 30, 2025, was $24.06 million or $1.31 per diluted common share.

The Company also declared a quarterly cash dividend to common shareholders of thirty-one cents, $0.31, per common share. The quarterly dividend is payable to common shareholders of record on August 8, 2025, and is expected to be paid on August 22, 2025. This year marks the 40th consecutive year of regular dividends to common shareholders and the prior year was the 15th consecutive year of regular dividend increases.

During the second quarter of 2025, the Company was named a recipient of the 2024 Raymond James Community Bankers Cup. The award recognizes the superior financial performance of the top 10% of the country’s community banks.

Second Quarter 2025 Highlights

Income Statement

Net interest margin for the second quarter of 2025 remained strong at 4.37%. The yield on earning assets decreased 16 basis points from the same period of 2024 and is primarily attributable to a decrease in interest income of $1.40 million. Interest income on loans decreased $2.05 million, which was primarily due to a decrease in the average balance for loans of $134.85 million. Additionally, the yield on loans decreased 6 basis points. The decrease in interest income on loans was somewhat offset by an increase in interest income on interest-bearing deposits with banks of $840 thousand. Interest expense on interest-bearing liabilities decreased $145 thousand, which is primarily attributable to a decrease in average balance, as well as a decrease in yield of 3 basis points.
There was a recovery of provision for credit losses for the quarter ending June 30, 2025, of $285 thousand compared to a provision of $144 thousand for the same period of 2024. The decrease is primarily due to a decrease in net charge-offs for the quarter of $553 thousand compared to the same period in 2024 and a reduction in loan balance period over period of $119.99 million.
Noninterest income increased approximately $998 thousand, or 10.68%, when compared to the same quarter of 2024. The increase is primarily attributable to an increase in service charges on deposits of $692 thousand, or 20.19%. Noninterest expense increased $558 thousand, or 2.24%, when compared to the same period of 2024. The increase is attributable to increases in salaries and benefits of $1.86 million, or 14.87%, other operating expense of $328 thousand, or 10.84%, and advertising and public relations of $221 thousand, or 23.67%.
Net income of $12.25 million for the second quarter of 2025, was a decrease of $440 thousand, or 3.47%, from the same quarter of 2024. Net income of $24.06 million for the first six months of 2025, was a decrease of $1.47 million, or 5.75%, from the same period of 2024.
Annualized return on average assets (“ROA”) was 1.53% for the second quarter of 2025 compared to 1.58% for the same period of 2024. Annualized return on average assets (“ROA”) for the six months ended June 30, 2025, was 1.51% compared to 1.59% for the same period of 2024 Annualized return on average common equity (“ROE”) was 9.84% for the second quarter of 2025 compared to 10.02% for the same period of 2024. Annualized return on average common equity (“ROE”) was 9.67% for the six months ended June 30, 2025, compared to 10.10% for the same period of 2024. Additionally, return on average tangible common equity continues to remain strong at 14.32% for the second quarter of 2025.

Balance Sheet and Asset Quality

Consolidated assets totaled $3.18 billion at June 30, 2025.
Loans decreased $62.81 million, or 2.60%, from December 31, 2024. Securities available for sale decreased $37.31 million, or 21.97%, from December 31, 2024. Deposits decreased $55.88 million, or 2.08%, which was due to a decrease in interest-bearing demand deposits and declining higher-rate time deposits. Stockholder equity decreased $23.56 million, or 4.48% primarily due to the payment of a special cash dividend in the first quarter of 2025. The net effect of these balance sheet changes resulted in an increase in cash and cash equivalents of $17.60 million, or 4.66%.
The Company repurchased 50,338 common shares during the second quarter of 2025 at a cost of $1.85 million; there were no shares repurchased in the first quarter of 2025. The Company purchased 155,044 common shares during the second quarter of 2024 at a total cost of $5.28 million; a total of 244,440 common shares was purchased during the first six months of 2024 at a total cost of $8.25 million.
Total non-performing assets as of June 30, 2025, were $19.17 million, compared with $20.67 million as of December 31, 2024, and $19.93 million as of June 30, 2024. The Company has realized a declining trend in non-performing assets since September 30, 2024.
Non-performing loans to total loans remained the same at 0.79% when compared with the same quarter of 2024. The Company experienced net charge-offs for the second quarter of 2025 of $472 thousand, or 0.08% of annualized average loans, compared to net charge-offs of $1.03 million, or 0.16%, of annualized average loans for the same period in 2024.
The allowance for credit losses to total loans was 1.40% at June 30, 2025, compared to 1.44% at December 31, 2024 and 1.41% at June 30, 2024.
Book value per share at June 30, 2025, was $ 27.46, a decrease of $1.27 from year-end 2024. The decrease is primarily attributable to the payment of the special cash dividend in the first quarter of 2025 of $2.07 per share totaling approximately $37.93 million.

Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this news release include “tangible book value per common share,” “return on average tangible common equity,” “adjusted earnings,” “adjusted diluted earnings per share,” “adjusted return on average assets,” “adjusted return on average common equity,” “adjusted return on average tangible common equity,” and certain financial measures presented on a fully taxable equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21%. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as a reconciliation to that comparable GAAP financial measure can be found in the attached tables to this press release. While the Company believes certain non-GAAP financial measures enhance the understanding of its business and performance, they are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.

About First Community Bankshares, Inc.

First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 53 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of June 30, 2025. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered $1.66 billion in combined assets as of June 30, 2025. The Company reported consolidated assets of $3.18 billion as of June 30, 2025. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.

This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; changes in banking laws and regulations; the degree of competition by traditional and non-traditional competitors; the impact of natural disasters, extreme weather events, military conflict , terrorism or other geopolitical events; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Amounts in thousands, except share and per share data)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024
Interest income
Interest and fees on loans	$	30,637		$	30,669		$	31,637		$	32,120		$	32,696		$	61,306		$	66,114
Interest on securities		1,029			1,238			1,447			1,070			1,211			2,267			2,909
Interest on deposits in banks		3,722			3,262			3,348			3,702			2,882			6,984			3,795
Total interest income		35,388			35,169			36,432			36,892			36,789			70,557			72,818
Interest expense
Interest on deposits		4,731			4,871			5,099			5,298			4,877			9,602			9,242
Interest on borrowings		–			–			–			–			–			–			35
Total interest expense		4,731			4,871			5,099			5,298			4,877			9,602			9,277
Net interest income		30,657			30,298			31,333			31,594			31,912			60,955			63,541
Provision for credit losses		(285	)		321			1,082			1,360			144			36			1,155
Net interest income after provision		30,942			29,977			30,251			30,234			31,768			60,919			62,386
Noninterest income		10,340			10,229			10,337			10,452			9,342			20,569			18,601
Noninterest expense		25,455			24,944			24,107			24,177			24,897			50,399			48,283
Income before income taxes		15,827			15,262			16,481			16,509			16,213			31,089			32,704
Income tax expense		3,581			3,444			3,441			3,476			3,527			7,025			7,173
Net income	$	12,246		$	11,818		$	13,040		$	13,033		$	12,686		$	24,064		$	25,531


Earnings per common share
Basic	$	0.67		$	0.64		$	0.71		$	0.71		$	0.69		$	1.31		$	1.39
Diluted	$	0.67		$	0.64		$	0.71		$	0.71		$	0.71		$	1.31		$	1.42
Cash dividends per common share
Regular		0.31			0.31			0.31			0.31			0.29			0.62			0.58
Special cash dividend		–			2.07			–			–			–			2.07			–
Weighted average shares outstanding
Basic		18,295,465			18,324,760			18,299,612			18,279,612			18,343,958			18,310,032			18,410,043
Diluted		18,400,793			18,451,321			18,418,441			18,371,907			18,409,876			18,427,503			18,475,110
Performance ratios
Return on average assets		1.53	%		1.49	%		1.60	%		1.60	%		1.58	%		1.51	%		1.59	%
Return on average common equity		9.84	%		9.49	%		9.89	%		10.04	%		10.02	%		9.67	%		10.10	%
Return on average tangible common equity(1)		14.32	%		13.79	%		14.12	%		14.46	%		14.54	%		14.04	%		14.68	%

________________________
(1)		A non-GAAP financial measure defined as net income divided by average stockholders’ equity less average goodwill and other intangible assets.

CONDENSED CONSOLIDATED QUARTERLY NONINTEREST INCOME AND EXPENSE (Unaudited)
	Three Months Ended										Six Months Ended
(Amounts in thousands)	June 30,		March 31,		December 31,		September 30,		June 30,		June 30,
(Amounts in thousands)	2025		2025		2024		2024		2024		2025		2024
Noninterest income
Wealth management	$	1,222	$	1,162	$	1,251	$	1,071	$	1,064	$	2,384	$	2,163
Service charges on deposits		4,120		3,836		3,613		3,661		3,428		7,956		6,738
Other service charges and fees		3,791		3,340		3,575		3,697		3,670		7,131		7,120
Other operating income		1,207		1,891		1,898		2,023		1,180		3,098		2,580
Total noninterest income	$	10,340	$	10,229	$	10,337	$	10,452	$	9,342	$	20,569	$	18,601
Noninterest expense
Salaries and employee benefits	$	14,349	$	13,335	$	13,501	$	13,129	$	12,491	$	27,684	$	25,072
Occupancy expense		1,290		1,576		1,329		1,270		1,309		2,866		2,687
Furniture and equipment expense		1,587		1,575		1,562		1,574		1,687		3,162		3,232
Service fees		2,475		2,484		2,305		2,461		2,427		4,959		4,876
Advertising and public relations		1,154		1,055		1,165		967		933		2,209		1,729
Professional fees		360		372		295		221		330		732		702
Amortization of intangibles		526		524		535		536		530		1,050		1,060
FDIC premiums and assessments		361		362		365		365		364		723		733
Litigation expense		–		–		–		–		1,800		–		1,800
Other operating expense		3,353		3,661		3,050		3,654		3,026		7,014		6,392
Total noninterest expense	$	25,455	$	24,944	$	24,107	$	24,177	$	24,897	$	50,399	$	48,283

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EARNINGS (Unaudited)
(Amounts in thousands, except per share data)	Three Months Ended															Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024
Adjusted Net Income for diluted earnings per share	$	12,246		$	11,818		$	13,040		$	13,033		$	12,686		$	24,064		$	26,210
Non-GAAP adjustments:
Litigation expense		–			–			–			–			1,800			–			1,800
Other items(1)		–			–			–			(825	)		–			–			–
Total adjustments		–			–			–			(825	)		1,800			0			1,800
Tax effect		–			–			–			(198	)		432			0			432
Adjusted earnings, non-GAAP	$	12,246		$	11,818		$	13,040		$	12,406		$	14,054		$	24,064		$	27,578

Adjusted diluted earnings per common share, non-GAAP	$	0.67		$	0.64		$	0.71		$	0.68		$	0.76		$	1.31		$	1.49
Performance ratios, non-GAAP
Adjusted return on average assets		1.53	%		1.49	%		1.60	%		1.53	%		1.75	%		1.51	%		1.72	%
Adjusted return on average common equity		9.84	%		9.49	%		9.89	%		9.56	%		11.10	%		9.67	%		10.91	%
Adjusted return on average tangible common equity (2)		14.32	%		13.79	%		14.12	%		13.77	%		16.11	%		14.04	%		15.86	%

________________________
(1)		Includes other non-recurring income and expense items.
(2)		A non-GAAP financial measure defined as adjusted earnings divided by average stockholders’ equity less average goodwill and other intangible assets.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
	Three Months Ended June 30,
	2025							2024
(Amounts in thousands)	Average				Average Yield/			Average				Average Yield/
(Amounts in thousands)	Balance		Interest(1)		Rate(1)			Balance		Interest(1)		Rate(1)
Assets
Earning assets
Loans(2)(3)	$	2,364,362	$	30,731		5.21	%	$	2,499,212	$	32,777		5.27	%
Securities available for sale		128,457		1,053		3.29	%		144,755		1,242		3.45	%
Interest-bearing deposits		333,872		3,722		4.47	%		210,432		2,883		5.51	%
Total earning assets		2,826,691		35,506		5.04	%		2,854,399		36,902		5.20	%
Other assets		377,879							373,029
Total assets	$	3,204,570						$	3,227,428

Liabilities and stockholders’ equity
Interest-bearing deposits
Demand deposits	$	657,888	$	178		0.11	%	$	664,707	$	174		0.10	%
Savings deposits		895,024		3,322		1.49	%		874,420		3,582		1.65	%
Time deposits		228,485		1,232		2.16	%		246,291		1,121		1.83	%
Total interest-bearing deposits		1,781,397		4,732		1.07	%		1,785,418		4,877		1.10	%
Borrowings
Federal funds purchased		–		–		–			–		–		0.00	%
Retail repurchase agreements		1,293		–		0.07	%		1,002		–		0.04	%
Total borrowings		1,293		–		0.07	%		1,002		–		0.04	%
Total interest-bearing liabilities		1,782,690		4,732		1.06	%		1,786,420		4,877		1.10	%
Noninterest-bearing demand deposits		877,346							884,681
Other liabilities		45,310							47,123
Total liabilities		2,705,346							2,718,224
Stockholders’ equity		499,224							509,204
Total liabilities and stockholders’ equity	$	3,204,570						$	3,227,428
Net interest income, FTE(1)			$	30,774						$	32,025
Net interest rate spread						3.97	%						4.10	%
Net interest margin, FTE(1)						4.37	%						4.51	%

________________________
(1)		Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2)		Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)		Interest on loans includes non-cash and accelerated purchase accounting accretion of $430 thousand and $661 thousand for the three months ended June 30, 2025 and 2024, respectively.

AVERAGE BALANCE SHEETS AND NET INTEREST INCOME ANALYSIS (Unaudited)
	Six Months Ended June 30,
	2025							2024
	Average				Average Yield/			Average				Average Yield/
(Amounts in thousands)	Balance		Interest(1)		Rate(1)			Balance		Interest(1)		Rate(1)
Assets
Earning assets
Loans(2)(3)	$	2,379,630	$	61,488		5.21	%	$	2,524,159	$	66,278		5.28	%
Securities available for sale		138,804		2,314		3.36	%		191,882		2,974		3.12	%
Interest-bearing deposits		315,011		6,984		4.47	%		138,458		3,798		5.52	%
Total earning assets		2,833,445		70,786		5.04	%		2,854,499		73,050		5.15	%
Other assets		375,846							373,322
Total assets	$	3,209,291						$	3,227,821

Liabilities and stockholders’ equity
Interest-bearing deposits
Demand deposits	$	658,268	$	358		0.11	%	$	665,291	$	336		0.10	%
Savings deposits		893,096		6,633		1.50	%		870,252		6,995		1.62	%
Time deposits		233,343		2,612		2.26	%		248,133		1,911		1.55	%
Total interest-bearing deposits		1,784,707		9,603		1.09	%		1,783,676		9,242		1.04	%
Borrowings
Federal funds purchased		–		–		–			1,264		35		5.52	%
Retail repurchase agreements		1,183		–		0.06	%		1,065		–		0.05	%
Total borrowings		1,183		–		0.06	%		2,329		35		3.02	%
Total interest-bearing liabilities		1,785,890		9,603		1.08	%		1,786,005		9,277		1.04	%
Noninterest-bearing demand deposits		868,714							885,813
Other liabilities		52,698							47,710
Total liabilities		2,707,302							2,719,528
Stockholders’ equity		501,989							508,293
Total liabilities and stockholders’ equity	$	3,209,291						$	3,227,821
Net interest income, FTE(1)			$	61,183						$	63,773
Net interest rate spread						3.96	%						4.11	%
Net interest margin, FTE(1)						4.35	%						4.49	%

________________________
(1)		Interest income and average yield/rate are presented on a FTE, non-GAAP, basis using the federal statutory income tax rate of 21%.
(2)		Nonaccrual loans are included in the average balance; however, no related interest income is recorded during the period of nonaccrual.
(3)		Interest on loans includes non-cash and accelerated purchase accounting accretion of $986 thousand and $1.44 million for the six months ended June 30, 2025 and 2024, respectively.

CONDENSED CONSOLIDATED QUARTERLY BALANCE SHEETS (Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
(Amounts in thousands, except per share data)	2025			2025			2024			2024			2024
Assets
Cash and cash equivalents	$	395,057		$	414,682		$	377,454		$	315,338		$	329,877
Debt securities available for sale, at fair value		132,535			129,659			169,849			166,669			129,686
Loans held for investment, net of unearned income		2,353,277			2,382,699			2,416,089			2,444,113			2,473,268
Allowance for credit losses		(33,020	)		(33,784	)		(34,825	)		(35,118	)		(34,885	)
Loans held for investment, net		2,320,257			2,348,915			2,381,264			2,408,995			2,438,383
Premises and equipment, net		48,023			48,780			48,735			49,654			50,528
Other real estate owned		455			298			521			346			100
Interest receivable		8,787			9,306			9,207			9,883			9,984
Goodwill		143,946			143,946			143,946			143,946			143,946
Other intangible assets		11,964			12,490			13,014			13,550			14,085
Other assets		119,990			117,697			117,226			115,980			116,230
Total assets	$	3,181,014		$	3,225,773		$	3,261,216		$	3,224,361		$	3,232,819

Liabilities
Deposits
Noninterest-bearing	$	873,677		$	893,794		$	883,499		$	869,723		$	889,462
Interest-bearing		1,761,687			1,790,683			1,807,748			1,789,530			1,787,810
Total deposits		2,635,364			2,684,477			2,691,247			2,659,253			2,677,272
Securities sold under agreements to repurchase		1,016			908			906			954			894
Interest, taxes, and other liabilities		41,805			43,971			42,671			43,460			45,769
Total liabilities		2,678,185			2,729,356			2,734,824			2,703,667			2,723,935

Stockholders’ equity
Common stock		18,311			18,327			18,322			18,291			18,270
Additional paid-in capital		169,358			169,867			169,752			168,691			168,272
Retained earnings		324,307			317,728			349,489			342,121			334,756
Accumulated other comprehensive loss		(9,147	)		(9,505	)		(11,171	)		(8,409	)		(12,414	)
Total stockholders’ equity		502,829			496,417			526,392			520,694			508,884
Total liabilities and stockholders’ equity	$	3,181,014		$	3,225,773		$	3,261,216		$	3,224,361		$	3,232,819

Shares outstanding at period-end		18,311,232			18,326,657			18,321,795			18,290,938			18,270,273
Book value per common share	$	27.46		$	27.09		$	28.73		$	28.47		$	27.85
Tangible book value per common share(1)		18.95			18.55			20.16			19.86			19.20

________________________
(1)		A non-GAAP financial measure defined as stockholders’ equity less goodwill and other intangible assets, divided by shares outstanding.

SELECTED CREDIT QUALITY INFORMATION (Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
(Amounts in thousands)	2025			2025			2024			2024			2024
Allowance for Credit Losses
Balance at beginning of period:
Allowance for credit losses – loans	$	33,784		$	34,825		$	35,118		$	34,885		$	35,461
Allowance for credit losses – loan commitments		312			341			441			441			746
Total allowance for credit losses beginning of period		34,096			35,166			35,559			35,326			36,207
Provision for credit losses:
(Recovery of ) provision for credit losses – loans		(292	)		350			1,182			1,360			449
(Recovery of) provision for credit losses – loan commitments		7			(29	)		(100	)		–			(305	)
Total provision for credit losses – loans and loan commitments		(285	)		321			1,082			1,360			144
Charge-offs		(1,509	)		(1,998	)		(2,005	)		(1,799	)		(1,599	)
Recoveries		1,037			607			530			672			574
Net charge-offs		(472	)		(1,391	)		(1,475	)		(1,127	)		(1,025	)
Balance at end of period:
Allowance for credit losses – loans		33,020			33,784			34,825			35,118			34,885
Allowance for credit losses – loan commitments		319			312			341			441			441
Ending balance	$	33,339		$	34,096		$	35,166		$	35,559		$	35,326

Nonperforming Assets
Nonaccrual loans	$	18,084		$	19,974		$	19,869		$	19,754		$	19,815
Accruing loans past due 90 days or more		568			117			149			176			19
Modified loans past due 90 days or more		–			125			135			–			–
Total nonperforming loans		18,652			20,216			20,153			19,930			19,834
OREO		455			298			521			346			100
Total nonperforming assets	$	19,107		$	20,514		$	20,674		$	20,276		$	19,934


Additional Information
Total modified loans	$	2,129		$	2,124		$	2,260		$	2,320		$	2,290

Asset Quality Ratios
Nonperforming loans to total loans		0.79	%		0.85	%		0.83	%		0.82	%		0.80	%
Nonperforming assets to total assets		0.60	%		0.64	%		0.63	%		0.63	%		0.62	%
Allowance for credit losses to nonperforming loans		177.03	%		167.12	%		172.80	%		176.21	%		175.88	%
Allowance for credit losses to total loans		1.40	%		1.42	%		1.44	%		1.44	%		1.41	%
Annualized net charge-offs to average loans		0.08	%		0.24	%		0.24	%		0.18	%		0.16	%

FOR MORE INFORMATION, CONTACT:

David D. Brown

(276) 326-9000

The MIL Network –

July 23, 2025

MIL-OSI: Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2025

Source: GlobeNewswire (MIL-OSI)

WAUWATOSA, Wis., July 22, 2025 (GLOBE NEWSWIRE) — Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $7.7 million, or $0.43 per diluted share, for the quarter ended June 30, 2025 compared to $5.7 million, or $0.31 per diluted share, for the quarter ended June 30, 2024. Net income per diluted share was $0.59 for the six months ended June 30, 2025 compared to net income per diluted share of $0.47 for the six months ended June 30, 2024.

“We are pleased with our performance during the quarter, which resulted in our highest quarterly earnings per share since the quarter ended December 31, 2021,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “The Community Banking segment achieved $2.4 million of growth in net interest income compared to the quarter ended June 30, 2024, primarily due to continued improvement in our cost of funds. We continue to maintain strong asset quality and experience minimal loan loss activity, resulting in releases from our allowance for credit losses. The Mortgage Banking segment recorded pre-tax income as seasonal loan origination volumes expanded during the quarter and professional fees normalized following the finalization of our legal settlement during the prior quarter. On a consolidated level, we continued to add to book value per share through strong earnings and an active share repurchase program.”

Highlights of the Quarter Ended June 30, 2025

Waterstone Financial, Inc. (Consolidated)

Consolidated net income of Waterstone Financial, Inc. totaled $7.7 million for the quarter ended June 30, 2025 compared to net income of $5.7 million for the quarter ended June 30, 2024.
Consolidated return on average assets (annualized) was 1.39% for the quarter ended June 30, 2025 and 1.02% for the quarter ended June 30, 2024.
Consolidated return on average equity (annualized) was 9.04% for the quarter ended June 30, 2025 and 6.84% for the quarter ended June 30, 2024.
Dividends declared during the quarter ended June 30, 2025 totaled $0.15 per common share.
During the quarter ended June 30, 2025, we repurchased approximately 508,000 shares at a cost (including the federal excise tax) of $6.5 million, or $12.80 per share. The share repurchases increased book value approximately $0.14 during the quarter ended June 30, 2025.
Nonperforming assets as a percentage of total assets was 0.37% at June 30, 2025, 0.35% at March 31, 2025, and 0.25% at June 30, 2024.
Past due loans as a percentage of total loans was 0.69% at June 30, 2025, 0.67% at March 31, 2025, and 0.76% at June 30, 2024.
Book value per share was $18.19 at June 30, 2025 and $17.53 at December 31, 2024.

Community Banking Segment

Pre-tax income totaled $7.6 million for the quarter ended June 30, 2025, which represents a $2.6 million, or 50.4%, increase compared to $5.1 million for the quarter ended June 30, 2024.
Net interest income totaled $13.6 million for the quarter ended June 30, 2025, which represents a $2.4 million, or 21.4%, increase compared to $11.2 million for the quarter ended June 30, 2024.
Average loans held for investment totaled $1.67 billion during the quarter ended June 30, 2025, which represents a decrease of $1.5 million, or 0.1%, compared to the quarter ended June 30, 2024. The decrease was primarily due to a decrease in single-family mortgages offset by increases in commercial real estate and multi-family mortgages. Average loans held for investment decreased $8.1 million compared to $1.67 billion for the quarter ended March 31, 2025. The decrease was primarily due to decrease in single-family mortgages.
Net interest margin increased 59 basis points to 2.60% for the quarter ended June 30, 2025 compared to 2.01% for the quarter ended June 30, 2024, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the cost of borrowings and weighted average cost of deposits. Net interest margin increased 13 basis points compared to 2.47% for the quarter ended March 31, 2025, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in cost of borrowings and weighted average cost of deposits.
Past due loans at the community banking segment totaled $8.9 million at June 30, 2025, $7.6 million at March 31, 2025, and $9.3 million at June 30, 2024.
The segment had a negative provision for credit losses related to funded loans of $125,000 for the quarter ended June 30, 2025 compared to a negative provision for credit losses related to funded loans of $197,000 for the quarter ended June 30, 2024. The current quarter decrease was primarily due to decreases in multi-family qualitative risk factors, offset by an increase in the single-family loan qualitative factors primarily related to increases in internal asset quality risk factors and an increase in construction loan balances. The provision for credit losses related to unfunded loan commitments was $106,000 for the quarter ended June 30, 2025 compared to a negative provision for credit losses related to unfunded loan commitments of $82,000 for the quarter ended June 30, 2024. The provision for credit losses related to unfunded loan commitments for the quarter ended June 30, 2025 was due primarily to an increase in the loans approved that are currently waiting to close compared to the prior quarter end.
The efficiency ratio, a non-GAAP ratio, was 50.40% for the quarter ended June 30, 2025, compared to 62.37% for the quarter ended June 30, 2024.
Average core retail deposits (excluding brokered and escrow accounts) totaled $1.31 billion during the quarter ended June 30, 2025, an increase of $91.7 million, or 7.5%, compared to $1.22 billion during the quarter ended June 30, 2024. Average deposits increased $32.9 million, or 10.3% annualized, compared to $1.28 billion for the quarter ended March 31, 2025. The increases were primarily due to increases in checking, money market, and certificates of deposit balances. The segment had an average of $72.5 million in brokered certificate of deposits during the quarter ended June 30, 2025.

Mortgage Banking Segment

Pre-tax income totaled $2.0 million for the quarters ended June 30, 2025 and June 30, 2024.
Loan originations decreased $45.3 million, or 7.1%, to $588.8 million during the quarter ended June 30, 2025, compared to $634.1 million during the quarter ended June 30, 2024. Origination volume relative to purchase activity accounted for 91.7% of originations for the quarter ended June 30, 2025 compared to 92.7% of total originations for the quarter ended June 30, 2024.
Mortgage banking non-interest income decreased $2.4 million, or 9.7%, to $22.6 million for the quarter ended June 30, 2025, compared to $25.1 million for the quarter ended June 30, 2024.
Gross margin on loans sold totaled 3.84% for the quarter ended June 30, 2025, compared to 3.93% for the quarter ended June 30, 2024.
Total compensation, payroll taxes and other employee benefits decreased $574,000, or 3.4%, to $16.3 million during the quarter ended June 30, 2025 compared to $16.9 million during the quarter ended June 30, 2024. The decrease primarily related to decreased commission expense and salary expense offset by an increase in health insurance expense.

About Waterstone Financial, Inc.

Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states.

With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide. For more information about WaterStone Bank, go to http://www.wsbonline.com.

Forward-Looking Statements

This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.

Non-GAAP Financial Measures

Management uses non-GAAP financial information in its analysis of the Company’s performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhances comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	For The Three Months Ended June 30,						For The Six Months Ended June 30,
	2025			2024			2025			2024
	(In Thousands, except per share amounts)
Interest income:
Loans	$	25,875		$	25,601		$	50,953		$	50,085
Mortgage-related securities		1,253			1,125			2,444			2,223
Debt securities, federal funds sold and short-term investments		1,557			1,294			3,043			2,617
Total interest income		28,685			28,020			56,440			54,925
Interest expense:
Deposits		10,967			9,716			22,299			18,686
Borrowings		4,010			7,625			7,857			14,423
Total interest expense		14,977			17,341			30,156			33,109
Net interest income		13,708			10,679			26,284			21,816
Provision (credit) for credit losses		(9	)		(225	)		(567	)		(158	)
Net interest income after provision (credit) for loan losses		13,717			10,904			26,851			21,974
Noninterest income:
Service charges on loans and deposits		413			465			1,006			889
Increase in cash surrender value of life insurance		1,014			804			1,495			1,152
Mortgage banking income		22,559			24,838			38,287			44,906
Other		343			390			638			798
Total noninterest income		24,329			26,497			41,426			47,745
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		21,121			21,762			38,168			41,638
Occupancy, office furniture, and equipment		1,753			2,029			3,682			4,137
Advertising		746			987			1,469			1,901
Data processing		1,313			1,242			2,525			2,448
Communications		257			240			492			466
Professional fees		500			758			2,236			1,501
Real estate owned		(8	)		1			(18	)		14
Loan processing expense		817			861			1,737			1,907
Other		1,878			2,379			4,436			3,797
Total noninterest expenses		28,377			30,259			54,727			57,809
Income before income taxes		9,669			7,142			13,550			11,910
Income tax expense		1,942			1,430			2,787			3,160
Net income	$	7,727		$	5,712		$	10,763		$	8,750
Income per share:
Basic	$	0.43		$	0.31		$	0.59		$	0.47
Diluted	$	0.43		$	0.31		$	0.59		$	0.47
Weighted average shares outstanding:
Basic		17,989			18,524			18,127			18,772
Diluted		18,004			18,568			18,143			18,802

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	June 30,			December 31,
	2025			2024
	(Unaudited)
Assets	(In Thousands, except per share amounts)
Cash	$	63,178		$	35,182
Federal funds sold		7,465			4,302
Interest-earning deposits in other financial institutions and other short-term investments		280			277
Cash and cash equivalents		70,923			39,761
Securities available for sale (at fair value)		218,757			208,549
Loans held for sale (at fair value)		161,826			135,909
Loans receivable		1,664,273			1,680,576
Less: Allowance for credit losses (“ACL”) – loans		17,800			18,247
Loans receivable, net		1,646,473			1,662,329

Office properties and equipment, net		18,874			19,389
Federal Home Loan Bank stock (at cost)		20,349			20,295
Cash surrender value of life insurance		76,287			74,612
Real estate owned, net		85			505
Prepaid expenses and other assets		42,986			48,259
Total assets	$	2,256,560		$	2,209,608

Liabilities and Shareholders’ Equity
Liabilities:
Demand deposits	$	174,506		$	171,115
Money market and savings deposits		320,881			283,243
Time deposits		889,320			905,539
Total deposits		1,384,707			1,359,897

Borrowings		465,726			446,519
Advance payments by borrowers for taxes		21,083			5,630
Other liabilities		43,553			58,427
Total liabilities		1,915,069			1,870,473

Shareholders’ equity:
Preferred stock		–			–
Common stock		188			193
Additional paid-in capital		84,106			91,214
Retained earnings		282,578			277,196
Unearned ESOP shares		(10,089	)		(10,682	)
Accumulated other comprehensive loss, net of taxes		(15,292	)		(18,786	)
Total shareholders’ equity		341,491			339,135
Total liabilities and shareholders’ equity	$	2,256,560		$	2,209,608

Share Information
Shares outstanding		18,776			19,343
Book value per share	$	18.19		$	17.53

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
	(Dollars in Thousands, except per share amounts)
Condensed Results of Operations:
Net interest income	$	13,708		$	12,576		$	12,835		$	11,517		$	10,679
Provision (credit) for credit losses		(9	)		(558	)		367			(377	)		(225	)
Total noninterest income		24,329			17,097			19,005			22,552			26,497
Total noninterest expense		28,377			26,350			25,267			28,560			30,259
Income before income taxes		9,669			3,881			6,206			5,886			7,142
Income tax expense		1,942			845			996			1,158			1,430
Net income	$	7,727		$	3,036		$	5,210		$	4,728		$	5,712
Income per share – basic	$	0.43		$	0.17		$	0.28		$	0.26		$	0.31
Income per share – diluted	$	0.43		$	0.17		$	0.28		$	0.26		$	0.31
Dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15

Performance Ratios (annualized):
Return on average assets – QTD		1.39	%		0.57	%		0.94	%		0.83	%		1.02	%
Return on average equity – QTD		9.04	%		3.61	%		6.05	%		5.55	%		6.84	%
Net interest margin – QTD		2.60	%		2.47	%		2.42	%		2.13	%		2.01	%

Return on average assets – YTD		0.99	%		0.57	%		0.84	%		0.81	%		0.79	%
Return on average equity – YTD		6.32	%		3.61	%		5.48	%		5.30	%		5.17	%
Net interest margin – YTD		2.54	%		2.47	%		2.17	%		2.09	%		2.08	%

Asset Quality Ratios:
Past due loans to total loans		0.69	%		0.67	%		0.95	%		0.63	%		0.76	%
Nonaccrual loans to total loans		0.49	%		0.45	%		0.34	%		0.32	%		0.33	%
Nonperforming assets to total assets		0.37	%		0.35	%		0.28	%		0.25	%		0.25	%
Allowance for credit losses – loans to loans receivable		1.07	%		1.08	%		1.09	%		1.07	%		1.10	%

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Average balances	(Dollars in Thousands)
Interest-earning assets
Loans receivable and held for sale	$	1,812,065		$	1,768,617		$	1,819,574		$	1,870,627		$	1,859,608
Mortgage related securities		173,220			170,947			168,521			170,221			171,895
Debt securities, federal funds sold and short-term investments		131,710			123,004			124,658			115,270			107,992
Total interest-earning assets		2,116,995			2,062,568			2,112,753			2,156,118			2,139,495
Noninterest-earning assets		105,382			105,030			100,627			104,600			104,019
Total assets	$	2,222,377		$	2,167,598		$	2,213,380		$	2,260,718		$	2,243,514

Interest-bearing liabilities
Demand accounts	$	89,548		$	87,393		$	92,247		$	89,334		$	91,300
Money market, savings, and escrow accounts		320,908			300,686			306,478			304,116			293,483
Certificates of deposit – retail		830,550			818,612			810,340			786,228			758,252
Certificates of deposit – brokered		72,533			97,101			59,254			–			–
Total interest-bearing deposits		1,313,539			1,303,792			1,268,319			1,179,678			1,143,035
Borrowings		437,784			397,053			464,964			600,570			622,771
Total interest-bearing liabilities		1,751,323			1,700,845			1,733,283			1,780,248			1,765,806
Noninterest-bearing demand deposits		85,665			80,372			87,889			91,532			93,637
Noninterest-bearing liabilities		42,669			44,905			49,645			49,787			48,315
Total liabilities		1,879,657			1,826,122			1,870,817			1,921,567			1,907,758
Equity		342,720			341,476			342,563			339,151			335,756
Total liabilities and equity	$	2,222,377		$	2,167,598		$	2,213,380		$	2,260,718		$	2,243,514

Average Yield/Costs (annualized)
Loans receivable and held for sale		5.73	%		5.75	%		5.75	%		5.65	%		5.54	%
Mortgage related securities		2.90	%		2.83	%		2.67	%		2.66	%		2.63	%
Debt securities, federal funds sold and short-term investments		4.74	%		4.90	%		4.85	%		5.05	%		4.82	%
Total interest-earning assets		5.43	%		5.46	%		5.46	%		5.39	%		5.27	%

Demand accounts		0.11	%		0.11	%		0.11	%		0.11	%		0.11	%
Money market and savings accounts		2.07	%		2.10	%		2.00	%		1.94	%		1.89	%
Certificates of deposit – retail		4.11	%		4.33	%		4.53	%		4.54	%		4.41	%
Certificates of deposit – brokered		4.35	%		4.18	%		4.18	%		0.00	%		0.00	%
Total interest-bearing deposits		3.35	%		3.52	%		3.58	%		3.53	%		3.42	%
Borrowings		3.67	%		3.93	%		4.11	%		4.77	%		4.92	%
Total interest-bearing liabilities		3.43	%		3.62	%		3.72	%		3.95	%		3.95	%

COMMUNITY BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest income	$	13,640		$	12,403		$	12,886		$	12,250		$	11,234
Provision (credit) for credit losses		(19	)		(518	)		331			(302	)		(279	)
Total noninterest income		1,686			1,348			1,595			1,227			1,491
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		5,027			5,212			4,883			5,326			5,116
Occupancy, office furniture and equipment		920			1,076			825			904			983
Advertising		219			171			204			311			229
Data processing		806			712			691			720			687
Communications		99			100			89			80			72
Professional fees		196			347			196			190			177
Real estate owned		(8	)		(10	)		12			–			1
Loan processing expense		–			–			–			–			–
Other		466			596			563			602			672
Total noninterest expense		7,725			8,204			7,463			8,133			7,937
Income before income taxes		7,620			6,065			6,687			5,646			5,067
Income tax expense		1,400			1,427			1,399			941			718
Net income	$	6,220		$	4,638		$	5,288		$	4,705		$	4,349

Efficiency ratio – QTD (non-GAAP)		50.40	%		59.66	%		51.54	%		60.35	%		62.37	%
Efficiency ratio – YTD (non-GAAP)		54.78	%		59.66	%		59.58	%		62.58	%		63.77	%

MORTGAGE BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)
	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest loss	$	53		$	152		$	(92	)	$	(760	)	$	(552	)
Provision for credit losses		10			(40	)		36			(75	)		54
Total noninterest income		22,643			15,731			17,455			21,386			25,081
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		16,312			12,054			13,781			15,930			16,886
Occupancy, office furniture and equipment		833			853			754			953			1,046
Advertising		527			552			523			615			758
Data processing		507			498			542			570			549
Communications		158			135			135			152			168
Professional fees		303			1,373			917			379			569
Real estate owned		–			–			–			–			–
Loan processing expense		817			920			486			697			861
Other		1,230			1,751			814			1,261			1,641
Total noninterest expense		20,687			18,136			17,952			20,557			22,478
(Loss) income before income taxes (benefit) expense		1,999			(2,213	)		(625	)		144			1,997
Income tax (benefit) expense)		531			(588	)		(428	)		194			684
Net (loss) income	$	1,468		$	(1,625	)	$	(197	)	$	(50	)	$	1,313

Efficiency ratio – QTD (non-GAAP)		91.15	%		114.18	%		103.39	%		99.67	%		91.64	%
Efficiency ratio – YTD (non-GAAP)		100.63	%		114.18	%		97.74	%		96.23	%		94.62	%

Loan originations	$	588,838		$	387,729		$	470,650		$	558,729		$	634,109
Purchase		91.7	%		87.5	%		82.1	%		88.9	%		92.7	%
Refinance		8.3	%		12.5	%		17.9	%		11.1	%		7.3	%
Gross margin on loans sold⁽¹⁾		3.84	%		3.98	%		3.74	%		3.83	%		3.93	%

⁽¹⁾ Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations.

Contact: Mark R. Gerke
Chief Financial Officer
414-459-4012
markgerke@wsbonline.com

The MIL Network –

July 23, 2025

MIL-OSI: Waterstone Financial, Inc. Announces Results of Operations for the Quarter and Six Months Ended June 30, 2025

Source: GlobeNewswire (MIL-OSI)

WAUWATOSA, Wis., July 22, 2025 (GLOBE NEWSWIRE) — Waterstone Financial, Inc. (NASDAQ: WSBF), holding company for WaterStone Bank, reported net income of $7.7 million, or $0.43 per diluted share, for the quarter ended June 30, 2025 compared to $5.7 million, or $0.31 per diluted share, for the quarter ended June 30, 2024. Net income per diluted share was $0.59 for the six months ended June 30, 2025 compared to net income per diluted share of $0.47 for the six months ended June 30, 2024.

“We are pleased with our performance during the quarter, which resulted in our highest quarterly earnings per share since the quarter ended December 31, 2021,” said William Bruss, Chief Executive Officer of Waterstone Financial, Inc. “The Community Banking segment achieved $2.4 million of growth in net interest income compared to the quarter ended June 30, 2024, primarily due to continued improvement in our cost of funds. We continue to maintain strong asset quality and experience minimal loan loss activity, resulting in releases from our allowance for credit losses. The Mortgage Banking segment recorded pre-tax income as seasonal loan origination volumes expanded during the quarter and professional fees normalized following the finalization of our legal settlement during the prior quarter. On a consolidated level, we continued to add to book value per share through strong earnings and an active share repurchase program.”

Highlights of the Quarter Ended June 30, 2025

Waterstone Financial, Inc. (Consolidated)

Consolidated net income of Waterstone Financial, Inc. totaled $7.7 million for the quarter ended June 30, 2025 compared to net income of $5.7 million for the quarter ended June 30, 2024.
Consolidated return on average assets (annualized) was 1.39% for the quarter ended June 30, 2025 and 1.02% for the quarter ended June 30, 2024.
Consolidated return on average equity (annualized) was 9.04% for the quarter ended June 30, 2025 and 6.84% for the quarter ended June 30, 2024.
Dividends declared during the quarter ended June 30, 2025 totaled $0.15 per common share.
During the quarter ended June 30, 2025, we repurchased approximately 508,000 shares at a cost (including the federal excise tax) of $6.5 million, or $12.80 per share. The share repurchases increased book value approximately $0.14 during the quarter ended June 30, 2025.
Nonperforming assets as a percentage of total assets was 0.37% at June 30, 2025, 0.35% at March 31, 2025, and 0.25% at June 30, 2024.
Past due loans as a percentage of total loans was 0.69% at June 30, 2025, 0.67% at March 31, 2025, and 0.76% at June 30, 2024.
Book value per share was $18.19 at June 30, 2025 and $17.53 at December 31, 2024.

Community Banking Segment

Pre-tax income totaled $7.6 million for the quarter ended June 30, 2025, which represents a $2.6 million, or 50.4%, increase compared to $5.1 million for the quarter ended June 30, 2024.
Net interest income totaled $13.6 million for the quarter ended June 30, 2025, which represents a $2.4 million, or 21.4%, increase compared to $11.2 million for the quarter ended June 30, 2024.
Average loans held for investment totaled $1.67 billion during the quarter ended June 30, 2025, which represents a decrease of $1.5 million, or 0.1%, compared to the quarter ended June 30, 2024. The decrease was primarily due to a decrease in single-family mortgages offset by increases in commercial real estate and multi-family mortgages. Average loans held for investment decreased $8.1 million compared to $1.67 billion for the quarter ended March 31, 2025. The decrease was primarily due to decrease in single-family mortgages.
Net interest margin increased 59 basis points to 2.60% for the quarter ended June 30, 2025 compared to 2.01% for the quarter ended June 30, 2024, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in the cost of borrowings and weighted average cost of deposits. Net interest margin increased 13 basis points compared to 2.47% for the quarter ended March 31, 2025, which was primarily driven by an increase in weighted average yield on loans receivable and held for sale and decreases in cost of borrowings and weighted average cost of deposits.
Past due loans at the community banking segment totaled $8.9 million at June 30, 2025, $7.6 million at March 31, 2025, and $9.3 million at June 30, 2024.
The segment had a negative provision for credit losses related to funded loans of $125,000 for the quarter ended June 30, 2025 compared to a negative provision for credit losses related to funded loans of $197,000 for the quarter ended June 30, 2024. The current quarter decrease was primarily due to decreases in multi-family qualitative risk factors, offset by an increase in the single-family loan qualitative factors primarily related to increases in internal asset quality risk factors and an increase in construction loan balances. The provision for credit losses related to unfunded loan commitments was $106,000 for the quarter ended June 30, 2025 compared to a negative provision for credit losses related to unfunded loan commitments of $82,000 for the quarter ended June 30, 2024. The provision for credit losses related to unfunded loan commitments for the quarter ended June 30, 2025 was due primarily to an increase in the loans approved that are currently waiting to close compared to the prior quarter end.
The efficiency ratio, a non-GAAP ratio, was 50.40% for the quarter ended June 30, 2025, compared to 62.37% for the quarter ended June 30, 2024.
Average core retail deposits (excluding brokered and escrow accounts) totaled $1.31 billion during the quarter ended June 30, 2025, an increase of $91.7 million, or 7.5%, compared to $1.22 billion during the quarter ended June 30, 2024. Average deposits increased $32.9 million, or 10.3% annualized, compared to $1.28 billion for the quarter ended March 31, 2025. The increases were primarily due to increases in checking, money market, and certificates of deposit balances. The segment had an average of $72.5 million in brokered certificate of deposits during the quarter ended June 30, 2025.

Mortgage Banking Segment

Pre-tax income totaled $2.0 million for the quarters ended June 30, 2025 and June 30, 2024.
Loan originations decreased $45.3 million, or 7.1%, to $588.8 million during the quarter ended June 30, 2025, compared to $634.1 million during the quarter ended June 30, 2024. Origination volume relative to purchase activity accounted for 91.7% of originations for the quarter ended June 30, 2025 compared to 92.7% of total originations for the quarter ended June 30, 2024.
Mortgage banking non-interest income decreased $2.4 million, or 9.7%, to $22.6 million for the quarter ended June 30, 2025, compared to $25.1 million for the quarter ended June 30, 2024.
Gross margin on loans sold totaled 3.84% for the quarter ended June 30, 2025, compared to 3.93% for the quarter ended June 30, 2024.
Total compensation, payroll taxes and other employee benefits decreased $574,000, or 3.4%, to $16.3 million during the quarter ended June 30, 2025 compared to $16.9 million during the quarter ended June 30, 2024. The decrease primarily related to decreased commission expense and salary expense offset by an increase in health insurance expense.

About Waterstone Financial, Inc.

Waterstone Financial, Inc. is the savings and loan holding company for WaterStone Bank, a community-focused financial institution established in 1921. WaterStone Bank offers a comprehensive suite of personal and business banking products and operates 14 branch locations across southeastern Wisconsin. WaterStone Bank is also the parent company of WaterStone Mortgage Corporation, a national lender licensed in 48 states.

With a long-standing commitment to innovation, integrity, and community service, Waterstone Financial, Inc. supports the financial and homeownership goals of customers nationwide. For more information about WaterStone Bank, go to http://www.wsbonline.com.

Forward-Looking Statements

This press release contains statements or information that may constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, without limitation, statements regarding expected financial and operating activities and results that are preceded by, followed by, or that include words such as “may,” “expects,” “anticipates,” “estimates” or “believes.” Any such statements are based upon current expectations that involve a number of risks and uncertainties and are subject to important factors that could cause actual results to differ materially from those anticipated by the forward-looking statements. Factors that might cause such a difference include changes in interest rates; demand for products and services; the degree of competition by traditional and nontraditional competitors; changes in banking regulation or actions by bank regulators; changes in tax laws; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in local real estate values; changes in the national and local economies; and other factors, including risk factors referenced in Item 1A. Risk Factors in Waterstone’s most recent Annual Report on Form 10-K and as may be described from time to time in Waterstone’s subsequent SEC filings, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect only Waterstone’s belief as of the date of this press release.

Non-GAAP Financial Measures

Management uses non-GAAP financial information in its analysis of the Company’s performance. Management believes that this non-GAAP measure provides a greater understanding of ongoing operations and enhances comparability of results of operations with prior periods. The Company’s management believes that investors may use this non-GAAP measure to analyze the Company’s financial performance without the impact of unusual items or events that may obscure trends in the Company’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in this measure and that different companies might calculate this measure differently.

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	For The Three Months Ended June 30,						For The Six Months Ended June 30,
	2025			2024			2025			2024
	(In Thousands, except per share amounts)
Interest income:
Loans	$	25,875		$	25,601		$	50,953		$	50,085
Mortgage-related securities		1,253			1,125			2,444			2,223
Debt securities, federal funds sold and short-term investments		1,557			1,294			3,043			2,617
Total interest income		28,685			28,020			56,440			54,925
Interest expense:
Deposits		10,967			9,716			22,299			18,686
Borrowings		4,010			7,625			7,857			14,423
Total interest expense		14,977			17,341			30,156			33,109
Net interest income		13,708			10,679			26,284			21,816
Provision (credit) for credit losses		(9	)		(225	)		(567	)		(158	)
Net interest income after provision (credit) for loan losses		13,717			10,904			26,851			21,974
Noninterest income:
Service charges on loans and deposits		413			465			1,006			889
Increase in cash surrender value of life insurance		1,014			804			1,495			1,152
Mortgage banking income		22,559			24,838			38,287			44,906
Other		343			390			638			798
Total noninterest income		24,329			26,497			41,426			47,745
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		21,121			21,762			38,168			41,638
Occupancy, office furniture, and equipment		1,753			2,029			3,682			4,137
Advertising		746			987			1,469			1,901
Data processing		1,313			1,242			2,525			2,448
Communications		257			240			492			466
Professional fees		500			758			2,236			1,501
Real estate owned		(8	)		1			(18	)		14
Loan processing expense		817			861			1,737			1,907
Other		1,878			2,379			4,436			3,797
Total noninterest expenses		28,377			30,259			54,727			57,809
Income before income taxes		9,669			7,142			13,550			11,910
Income tax expense		1,942			1,430			2,787			3,160
Net income	$	7,727		$	5,712		$	10,763		$	8,750
Income per share:
Basic	$	0.43		$	0.31		$	0.59		$	0.47
Diluted	$	0.43		$	0.31		$	0.59		$	0.47
Weighted average shares outstanding:
Basic		17,989			18,524			18,127			18,772
Diluted		18,004			18,568			18,143			18,802

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	June 30,			December 31,
	2025			2024
	(Unaudited)
Assets	(In Thousands, except per share amounts)
Cash	$	63,178		$	35,182
Federal funds sold		7,465			4,302
Interest-earning deposits in other financial institutions and other short-term investments		280			277
Cash and cash equivalents		70,923			39,761
Securities available for sale (at fair value)		218,757			208,549
Loans held for sale (at fair value)		161,826			135,909
Loans receivable		1,664,273			1,680,576
Less: Allowance for credit losses (“ACL”) – loans		17,800			18,247
Loans receivable, net		1,646,473			1,662,329

Office properties and equipment, net		18,874			19,389
Federal Home Loan Bank stock (at cost)		20,349			20,295
Cash surrender value of life insurance		76,287			74,612
Real estate owned, net		85			505
Prepaid expenses and other assets		42,986			48,259
Total assets	$	2,256,560		$	2,209,608

Liabilities and Shareholders’ Equity
Liabilities:
Demand deposits	$	174,506		$	171,115
Money market and savings deposits		320,881			283,243
Time deposits		889,320			905,539
Total deposits		1,384,707			1,359,897

Borrowings		465,726			446,519
Advance payments by borrowers for taxes		21,083			5,630
Other liabilities		43,553			58,427
Total liabilities		1,915,069			1,870,473

Shareholders’ equity:
Preferred stock		–			–
Common stock		188			193
Additional paid-in capital		84,106			91,214
Retained earnings		282,578			277,196
Unearned ESOP shares		(10,089	)		(10,682	)
Accumulated other comprehensive loss, net of taxes		(15,292	)		(18,786	)
Total shareholders’ equity		341,491			339,135
Total liabilities and shareholders’ equity	$	2,256,560		$	2,209,608

Share Information
Shares outstanding		18,776			19,343
Book value per share	$	18.19		$	17.53

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
	(Dollars in Thousands, except per share amounts)
Condensed Results of Operations:
Net interest income	$	13,708		$	12,576		$	12,835		$	11,517		$	10,679
Provision (credit) for credit losses		(9	)		(558	)		367			(377	)		(225	)
Total noninterest income		24,329			17,097			19,005			22,552			26,497
Total noninterest expense		28,377			26,350			25,267			28,560			30,259
Income before income taxes		9,669			3,881			6,206			5,886			7,142
Income tax expense		1,942			845			996			1,158			1,430
Net income	$	7,727		$	3,036		$	5,210		$	4,728		$	5,712
Income per share – basic	$	0.43		$	0.17		$	0.28		$	0.26		$	0.31
Income per share – diluted	$	0.43		$	0.17		$	0.28		$	0.26		$	0.31
Dividends declared per common share	$	0.15		$	0.15		$	0.15		$	0.15		$	0.15

Performance Ratios (annualized):
Return on average assets – QTD		1.39	%		0.57	%		0.94	%		0.83	%		1.02	%
Return on average equity – QTD		9.04	%		3.61	%		6.05	%		5.55	%		6.84	%
Net interest margin – QTD		2.60	%		2.47	%		2.42	%		2.13	%		2.01	%

Return on average assets – YTD		0.99	%		0.57	%		0.84	%		0.81	%		0.79	%
Return on average equity – YTD		6.32	%		3.61	%		5.48	%		5.30	%		5.17	%
Net interest margin – YTD		2.54	%		2.47	%		2.17	%		2.09	%		2.08	%

Asset Quality Ratios:
Past due loans to total loans		0.69	%		0.67	%		0.95	%		0.63	%		0.76	%
Nonaccrual loans to total loans		0.49	%		0.45	%		0.34	%		0.32	%		0.33	%
Nonperforming assets to total assets		0.37	%		0.35	%		0.28	%		0.25	%		0.25	%
Allowance for credit losses – loans to loans receivable		1.07	%		1.08	%		1.09	%		1.07	%		1.10	%

WATERSTONE FINANCIAL, INC. AND SUBSIDIARIES SUMMARY OF QUARTERLY AVERAGE BALANCES AND YIELD/COSTS (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Average balances	(Dollars in Thousands)
Interest-earning assets
Loans receivable and held for sale	$	1,812,065		$	1,768,617		$	1,819,574		$	1,870,627		$	1,859,608
Mortgage related securities		173,220			170,947			168,521			170,221			171,895
Debt securities, federal funds sold and short-term investments		131,710			123,004			124,658			115,270			107,992
Total interest-earning assets		2,116,995			2,062,568			2,112,753			2,156,118			2,139,495
Noninterest-earning assets		105,382			105,030			100,627			104,600			104,019
Total assets	$	2,222,377		$	2,167,598		$	2,213,380		$	2,260,718		$	2,243,514

Interest-bearing liabilities
Demand accounts	$	89,548		$	87,393		$	92,247		$	89,334		$	91,300
Money market, savings, and escrow accounts		320,908			300,686			306,478			304,116			293,483
Certificates of deposit – retail		830,550			818,612			810,340			786,228			758,252
Certificates of deposit – brokered		72,533			97,101			59,254			–			–
Total interest-bearing deposits		1,313,539			1,303,792			1,268,319			1,179,678			1,143,035
Borrowings		437,784			397,053			464,964			600,570			622,771
Total interest-bearing liabilities		1,751,323			1,700,845			1,733,283			1,780,248			1,765,806
Noninterest-bearing demand deposits		85,665			80,372			87,889			91,532			93,637
Noninterest-bearing liabilities		42,669			44,905			49,645			49,787			48,315
Total liabilities		1,879,657			1,826,122			1,870,817			1,921,567			1,907,758
Equity		342,720			341,476			342,563			339,151			335,756
Total liabilities and equity	$	2,222,377		$	2,167,598		$	2,213,380		$	2,260,718		$	2,243,514

Average Yield/Costs (annualized)
Loans receivable and held for sale		5.73	%		5.75	%		5.75	%		5.65	%		5.54	%
Mortgage related securities		2.90	%		2.83	%		2.67	%		2.66	%		2.63	%
Debt securities, federal funds sold and short-term investments		4.74	%		4.90	%		4.85	%		5.05	%		4.82	%
Total interest-earning assets		5.43	%		5.46	%		5.46	%		5.39	%		5.27	%

Demand accounts		0.11	%		0.11	%		0.11	%		0.11	%		0.11	%
Money market and savings accounts		2.07	%		2.10	%		2.00	%		1.94	%		1.89	%
Certificates of deposit – retail		4.11	%		4.33	%		4.53	%		4.54	%		4.41	%
Certificates of deposit – brokered		4.35	%		4.18	%		4.18	%		0.00	%		0.00	%
Total interest-bearing deposits		3.35	%		3.52	%		3.58	%		3.53	%		3.42	%
Borrowings		3.67	%		3.93	%		4.11	%		4.77	%		4.92	%
Total interest-bearing liabilities		3.43	%		3.62	%		3.72	%		3.95	%		3.95	%

COMMUNITY BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)

	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest income	$	13,640		$	12,403		$	12,886		$	12,250		$	11,234
Provision (credit) for credit losses		(19	)		(518	)		331			(302	)		(279	)
Total noninterest income		1,686			1,348			1,595			1,227			1,491
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		5,027			5,212			4,883			5,326			5,116
Occupancy, office furniture and equipment		920			1,076			825			904			983
Advertising		219			171			204			311			229
Data processing		806			712			691			720			687
Communications		99			100			89			80			72
Professional fees		196			347			196			190			177
Real estate owned		(8	)		(10	)		12			–			1
Loan processing expense		–			–			–			–			–
Other		466			596			563			602			672
Total noninterest expense		7,725			8,204			7,463			8,133			7,937
Income before income taxes		7,620			6,065			6,687			5,646			5,067
Income tax expense		1,400			1,427			1,399			941			718
Net income	$	6,220		$	4,638		$	5,288		$	4,705		$	4,349

Efficiency ratio – QTD (non-GAAP)		50.40	%		59.66	%		51.54	%		60.35	%		62.37	%
Efficiency ratio – YTD (non-GAAP)		54.78	%		59.66	%		59.58	%		62.58	%		63.77	%

MORTGAGE BANKING SEGMENT SUMMARY OF KEY QUARTERLY FINANCIAL DATA (Unaudited)
	At or For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
	(Dollars in Thousands)
Condensed Results of Operations:
Net interest loss	$	53		$	152		$	(92	)	$	(760	)	$	(552	)
Provision for credit losses		10			(40	)		36			(75	)		54
Total noninterest income		22,643			15,731			17,455			21,386			25,081
Noninterest expenses:
Compensation, payroll taxes, and other employee benefits		16,312			12,054			13,781			15,930			16,886
Occupancy, office furniture and equipment		833			853			754			953			1,046
Advertising		527			552			523			615			758
Data processing		507			498			542			570			549
Communications		158			135			135			152			168
Professional fees		303			1,373			917			379			569
Real estate owned		–			–			–			–			–
Loan processing expense		817			920			486			697			861
Other		1,230			1,751			814			1,261			1,641
Total noninterest expense		20,687			18,136			17,952			20,557			22,478
(Loss) income before income taxes (benefit) expense		1,999			(2,213	)		(625	)		144			1,997
Income tax (benefit) expense)		531			(588	)		(428	)		194			684
Net (loss) income	$	1,468		$	(1,625	)	$	(197	)	$	(50	)	$	1,313

Efficiency ratio – QTD (non-GAAP)		91.15	%		114.18	%		103.39	%		99.67	%		91.64	%
Efficiency ratio – YTD (non-GAAP)		100.63	%		114.18	%		97.74	%		96.23	%		94.62	%

Loan originations	$	588,838		$	387,729		$	470,650		$	558,729		$	634,109
Purchase		91.7	%		87.5	%		82.1	%		88.9	%		92.7	%
Refinance		8.3	%		12.5	%		17.9	%		11.1	%		7.3	%
Gross margin on loans sold⁽¹⁾		3.84	%		3.98	%		3.74	%		3.83	%		3.93	%

⁽¹⁾ Gross margin on loans sold equals mortgage banking income (excluding the change in interest rate lock value) divided by total loan originations.

Contact: Mark R. Gerke
Chief Financial Officer
414-459-4012
markgerke@wsbonline.com

The MIL Network –

July 23, 2025

Category: Banking

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