MIL-OSI: Hanmi Reports 2025 Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, July 22, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2025.

Net income for the second quarter of 2025 was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share for the first quarter of 2025. The return on average assets for the second quarter of 2025 was 0.79% and the return on average equity was 7.48%, compared with a return on average assets of 0.94% and a return on average equity of 8.92% for the first quarter of 2025.

CEO Commentary

“Hanmi delivered solid performance in the second quarter, highlighted by strong operational metrics,” said Bonnie Lee, President and Chief Executive Officer. “We further expanded our net interest margin to 3.07%, and grew preprovision net revenue by 3.7%, primarily driven by lower funding costs.”

“Loans grew 1.6% on an annualized basis with healthy C&I and residential mortgage loan production. Our relationship-based model continued to drive deposit growth, up 1.7% for the quarter. Noninterest-bearing demand deposit balances remained strong, accounting for over 30% of total deposits.”

“Our second quarter net income was impacted by credit loss expense; however, importantly, asset quality remained excellent with significant improvement from the prior quarter. Criticized loans, nonaccrual loans and delinquent loans all declined notably. Looking to the second half of the year, we are encouraged by the strength of our loan pipeline and remain focused on deepening client relationships, expanding our market presence and leveraging our balance sheet to deliver sustainable long-term growth.”

Second Quarter 2025 Highlights:

Second quarter net income was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share in the first quarter; the decline was driven by credit loss expense of $7.6 million.

Preprovision net revenue¹ grew 3.7%, or $1.0 million, reflecting a 3.7% increase in net interest income, a five basis point increase in the net interest margin, a 4.5% increase in noninterest income and well-managed noninterest expenses with the efficiency ratio remaining unchanged at 55.7%.

Asset quality improved significantly from the first quarter – criticized loans dropped 71.8% to 0.74% of total loans reflecting $85.3 million in loan upgrades of two CRE loans, a $20.0 million loan payment, and an $8.6 million loan charge-off; nonaccrual loans fell 26.8% to 0.41% of total loans reflecting the loan charge-off; and loan delinquencies declined to 0.17% of total loans.

Loans receivables were $6.31 billion at June 30, 2025, up 0.4% from the end of the first quarter of 2025; loan production for the second quarter was $329.6 million, with a weighted average interest rate of 7.10%.

Deposits were $6.73 billion at June 30, 2025, up 1.7% from the end of the first quarter of 2025; noninterest-bearing demand deposits at June 30, 2025 were 31.3% of total deposits.

Hanmi’s capital position remains strong with the ratio of tangible common equity to tangible assets² at 9.58% and the common equity tier 1 capital ratio at 12.12%; both essentially unchanged from the first quarter; tangible book value per share³ was $24.91.

____________________________________
_{¹ See non-GAAP reconciliation provided at the end of this news release.}

For more information about Hanmi, please see the Q2 2025 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

Quarterly Highlights
(Dollars in thousands, except per share data)

	As of or for the Three Months Ended															Amount Change
	June 30,			March 31,			December 31,			September 30,			June 30,			Q2-25			Q2-25
	2025			2025			2024			2024			2024			vs. Q1-25			vs. Q2-24

Net income	$	15,117		$	17,672		$	17,695		$	14,892		$	14,451		$	(2,555	)	$	666
Net income per diluted common share	$	0.50		$	0.58		$	0.58		$	0.49		$	0.48		$	(0.08	)	$	0.02

Assets	$	7,862,363		$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	133,328		$	276,016
Loans receivable	$	6,305,957		$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	23,768		$	129,598
Deposits	$	6,729,122		$	6,619,475		$	6,435,776		$	6,403,221		$	6,329,340		$	109,647		$	399,782

Return on average assets		0.79	%		0.94	%		0.93	%		0.79	%		0.77	%		-0.15			0.02
Return on average stockholders’ equity		7.48	%		8.92	%		8.89	%		7.55	%		7.50	%		-1.44			-0.02

Net interest margin		3.07	%		3.02	%		2.91	%		2.74	%		2.69	%		0.05			0.38
Efficiency ratio ⁽¹⁾		55.74	%		55.69	%		56.79	%		59.98	%		62.24	%		0.05			-6.50

Tangible common equity to tangible assets ⁽²⁾		9.58	%		9.59	%		9.41	%		9.42	%		9.19	%		-0.01			0.39
Tangible common equity per common share ⁽²⁾	$	24.91		$	24.49		$	23.88		$	24.03		$	22.99			0.42			1.92

_{⁽¹⁾Noninterest expense divided by net interest income plus noninterest income.}
_{⁽²⁾Refer to “Non-GAAP Financial Measures” for further details.}

Results of Operations
Net interest income for the second quarter was $57.1 million, up 3.7% from $55.1 million for the first quarter of 2025. The increase reflected the benefit of lower rates on interest-bearing liabilities, a higher volume of interest-earning assets and one additional day in the quarter. Average interest-earning assets increased 1.2% while the average yield decreased by one basis point. Average loans receivable increased 1.1% while the average yield decreased by two basis points to 5.93%. Average interest-bearing liabilities increased 0.9% while the average rate paid declined seven basis points. Average interest-bearing deposits, however, increased 3.7% while the average rate paid declined by five basis points to 3.64%, primarily due to lower rates paid on time deposits. Average borrowings fell 66.5% while the average rate paid increased one basis point.

Net interest margin (taxable equivalent) for the second quarter was 3.07%, up five basis points from 3.02% for the first quarter of 2025. The increase in the net interest margin reflected principally the benefit from lower average borrowings and a higher average balance of interest-bearing deposits in other banks.

____________________________________
_{² See non-GAAP reconciliation provided at the end of this news release.}
_{³ See non-GAAP reconciliation provided at the end of this news release.}

	For the Three Months Ended (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
Net Interest Income	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24

Interest and fees on loans receivable ⁽¹⁾	$	92,589	$	90,887	$	91,545	$	92,182	$	90,752		1.9	%		2.0	%
Interest on securities		6,261		6,169		5,866		5,523		5,238		1.5	%		19.5	%
Dividends on FHLB stock		354		360		360		356		357		-1.7	%		-0.8	%
Interest on deposits in other banks		2,129		1,841		2,342		2,356		2,313		15.6	%		-8.0	%
Total interest and dividend income	$	101,333	$	99,257	$	100,113	$	100,417	$	98,660		2.1	%		2.7	%

Interest on deposits		41,924		40,559		43,406		47,153		46,495		3.4	%		-9.8	%
Interest on borrowings		684		2,024		1,634		1,561		1,896		-66.2	%		-63.9	%
Interest on subordinated debentures		1,586		1,582		1,624		1,652		1,649		0.3	%		-3.8	%
Total interest expense		44,194		44,165		46,664		50,366		50,040		0.1	%		-11.7	%
Net interest income	$	57,139	$	55,092	$	53,449	$	50,051	$	48,620		3.7	%		17.5	%

_{⁽¹⁾Includes loans held for sale.}

	For the Three Months Ended (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
Average Earning Assets and Interest-bearing Liabilities	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Loans receivable ⁽¹⁾	$	6,257,741	$	6,189,531	$	6,103,264	$	6,112,324	$	6,089,440		1.1	%		2.8	%
Securities		993,975		1,001,499		998,313		986,041		979,671		-0.8	%		1.5	%
FHLB stock		16,385		16,385		16,385		16,385		16,385		0.0	%		0.0	%
Interest-bearing deposits in other banks		200,266		176,028		204,408		183,027		180,177		13.8	%		11.1	%
Average interest-earning assets	$	7,468,367	$	7,383,443	$	7,322,370	$	7,297,777	$	7,265,673		1.2	%		2.8	%

Demand: interest-bearing	$	81,308	$	79,369	$	79,784	$	83,647	$	85,443		2.4	%		-4.8	%
Money market and savings		2,109,221		2,037,224		1,934,540		1,885,799		1,845,870		3.5	%		14.3	%
Time deposits		2,434,659		2,345,346		2,346,363		2,427,737		2,453,154		3.8	%		-0.8	%
Average interest-bearing deposits		4,625,188		4,461,939		4,360,687		4,397,183		4,384,467		3.7	%		5.5	%
Borrowings		60,134		179,444		141,604		143,479		169,525		-66.5	%		-64.5	%
Subordinated debentures		130,880		130,718		130,567		130,403		130,239		0.1	%		0.5	%
Average interest-bearing liabilities	$	4,816,202	$	4,772,101	$	4,632,858	$	4,671,065	$	4,684,231		0.9	%		2.8	%

Average Noninterest Bearing Deposits
Demand deposits – noninterest bearing	$	1,934,985	$	1,895,953	$	1,967,789	$	1,908,833	$	1,883,765		2.1	%		2.7	%

_{⁽¹⁾Includes loans held for sale.}

	For the Three Months Ended															Yield/Rate Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Q2-25		Q2-25
Average Yields and Rates	2025			2025			2024			2024			2024			vs. Q1-25		vs. Q2-24
Loans receivable ⁽¹⁾		5.93	%		5.95	%		5.97	%		6.00	%		5.99	%		-0.02		-0.06
Securities ⁽²⁾		2.55	%		2.49	%		2.38	%		2.27	%		2.17	%		0.06		0.38
FHLB stock		8.65	%		8.92	%		8.75	%		8.65	%		8.77	%		-0.27		-0.12
Interest-bearing deposits in other banks		4.26	%		4.24	%		4.56	%		5.12	%		5.16	%		0.02		-0.90
Interest-earning assets		5.44	%		5.45	%		5.45	%		5.48	%		5.46	%		-0.01		-0.02

Interest-bearing deposits		3.64	%		3.69	%		3.96	%		4.27	%		4.27	%		-0.05		-0.63
Borrowings		4.58	%		4.57	%		4.59	%		4.33	%		4.50	%		0.01		0.08
Subordinated debentures		4.84	%		4.84	%		4.97	%		5.07	%		5.07	%		0.00		-0.23
Interest-bearing liabilities		3.68	%		3.75	%		4.01	%		4.29	%		4.30	%		-0.07		-0.62

Net interest margin (taxable equivalent basis)		3.07	%		3.02	%		2.91	%		2.74	%		2.69	%		0.05		0.38

Cost of deposits		2.56	%		2.59	%		2.73	%		2.97	%		2.98	%		-0.03		-0.42

_{⁽¹⁾Includes loans held for sale.}
_{⁽²⁾Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.}

Credit loss expense for the second quarter was $7.6 million, compared with $2.7 million for the first quarter of 2025. The increase in credit loss expense reflected the increase in net charge-offs as well as an increase in quantitative and qualitative estimated loss rates. Net charge-offs included an $8.6 million loan charge-off on the syndicated commercial real estate office loan designated as nonaccrual, with an associated specific allowance of $6.2 million, in the first quarter of 2025. Second quarter credit loss expense included a $7.5 million credit loss expense for loan losses and a $0.1 million credit loss expense for off-balance sheet items. First quarter credit loss expense included a $2.4 million credit loss expense for loan losses and a $0.3 million credit loss expense for off-balance sheet items.

Noninterest income for the second quarter increased $0.4 million, or 4.5%, to $8.1 million from $7.7 million for the first quarter of 2025. The increase was primarily due to a $0.2 million increase on gains from the sale of SBA loans and an increase in bank-owned life insurance income of $0.4 million from a death benefit claim, partially offset by the absence of gain on sale of mortgage loans. Gain on sales of SBA loans were $2.2 million for the second quarter of 2025, compared with $2.0 million for the first quarter of 2025. The volume of SBA loans sold for the second quarter increased to $35.4 million from $32.2 million for the first quarter of 2025, while trade premiums were 7.61% for the second quarter of 2025 compared with 7.82% for the first quarter. There were no mortgage loans sales during the second quarter, compared with $10.0 million of mortgage loans sold at a 2.50% premium for the first quarter. Gains on mortgage loans sold were $0.2 million for the first quarter. Subsequent to the end of the second quarter, $41.9 million of mortgage loans were sold at a 2.38% premium resulting in a gain of $0.7 million.

	For the Three Months Ended (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
Noninterest Income	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Service charges on deposit accounts	$	2,169	$	2,217	$	2,192	$	2,311	$	2,429		-2.2	%		-10.7	%
Trade finance and other service charges and fees		1,461		1,396		1,364		1,254		1,277		4.7	%		14.4	%
Servicing income		754		732		668		817		796		3.0	%		-5.3	%
Bank-owned life insurance income		708		309		316		320		638		129.1	%		11.0	%
All other operating income		819		897		1,037		1,008		908		-8.7	%		-9.8	%
Service charges, fees & other		5,911		5,551		5,577		5,710		6,048		6.5	%		-2.3	%

Gain on sale of SBA loans		2,160		2,000		1,443		1,544		1,644		8.0	%		31.4	%
Gain on sale of mortgage loans		–		175		337		324		365		-100.0	%		-100.0	%
Gain on sale of bank premises		–		–		–		860		–		0.0	%		0.0	%
Total noninterest income	$	8,071	$	7,726	$	7,357	$	8,438	$	8,057		4.5	%		0.2	%

Noninterest expense for the second quarter increased $1.3 million to $36.3 million from $35.0 million for the first quarter of 2025. Second quarter noninterest expense was up 3.9% sequentially due to increases in salaries and benefits, professional fees, advertising and promotion and all other operating expenses, partially offset by a $0.6 million gain on sale of other real estate owned. Salaries and benefits increased $1.1 million due to annual merit adjustments and lower capitalized salaries related to loan production. Professional fees increased $0.3 million due to new project activities and fees for services. Advertising and promotion increased $0.2 million primarily due to a new branch opening. All other operating expenses increased $0.4 million due to loan and deposit operating expenses. The efficiency ratio for the second quarter was 55.7%, unchanged from the first quarter of 2025.

	For the Three Months Ended (in thousands)													Percentage Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,		Jun 30,		Q2-25			Q2-25
	2025			2025			2024			2024		2024		vs. Q1-25			vs. Q2-24
Noninterest Expense
Salaries and employee benefits	$	22,069		$	20,972		$	20,498		$	20,851	$	20,434		5.2	%		8.0	%
Occupancy and equipment		4,344			4,450			4,503			4,499		4,348		-2.4	%		-0.1	%
Data processing		3,727			3,787			3,800			3,839		3,686		-1.6	%		1.1	%
Professional fees		1,725			1,468			1,821			1,492		1,749		17.5	%		-1.4	%
Supplies and communication		515			517			551			538		570		-0.4	%		-9.6	%
Advertising and promotion		798			585			821			631		669		36.4	%		19.3	%
All other operating expenses		3,567			3,175			3,847			2,875		3,251		12.3	%		9.7	%
Subtotal		36,745			34,954			35,841			34,725		34,707		5.1	%		5.9	%

Branch consolidation expense		–			–			–			–		301		0.0	%		-100.0	%
Other real estate owned expense (income)		(461	)		41			(1,588	)		77		6	N/M			N/M
Repossessed personal property expense (income)		63			(11	)		281			278		262		-672.7	%		-76.0	%
Total noninterest expense	$	36,347		$	34,984		$	34,534		$	35,080	$	35,276		3.9	%		3.0	%

Hanmi recorded a provision for income taxes of $6.1 million for the second quarter of 2025, compared with $7.4 million for the first quarter of 2025, representing an effective tax rate of 28.8% and 29.6%, respectively.

Financial Position
Total assets at June 30, 2025 increased 1.7%, or $133.3 million, to $7.86 billion from $7.73 billion at March 31, 2025. The increase reflected a $51.0 million increase in cash, a $37.8 million increase in loans held for sale, a $27.6 million increase in loans, a $11.1 million increase in securities available for sale, and a $6.7 million increase in prepaid expenses and other assets.

Loans receivable, before allowance for credit losses, were $6.31 billion at June 30, 2025, up from $6.28 billion at March 31, 2025.

Loans held-for-sale were $49.6 million at June 30, 2025, up from $11.8 million at March 31, 2025. At the end of the second quarter, loans held-for-sale consisted of $41.9 million of residential mortgage loans and $7.7 million of the guaranteed portion of SBA 7(a) loans.

	As of (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Loan Portfolio
Commercial real estate loans	$	3,948,922	$	3,975,651	$	3,949,622	$	3,932,088	$	3,888,505		-0.7	%		1.6	%
Residential/consumer loans		993,869		979,536		951,302		939,285		954,209		1.5	%		4.2	%
Commercial and industrial loans		917,995		854,406		863,431		879,092		802,372		7.4	%		14.4	%
Equipment finance		445,171		472,596		487,022		507,279		531,273		-5.8	%		-16.2	%
Loans receivable		6,305,957		6,282,189		6,251,377		6,257,744		6,176,359		0.4	%		2.1	%
Loans held for sale		49,611		11,831		8,579		54,336		10,467		319.3	%		374.0	%
Total	$	6,355,568	$	6,294,020	$	6,259,956	$	6,312,080	$	6,186,826		1.0	%		2.7	%

	As of
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
Composition of Loan Portfolio
Commercial real estate loans		62.2	%		63.1	%		63.1	%		62.3	%		62.9	%
Residential/consumer loans		15.6	%		15.6	%		15.2	%		14.9	%		15.4	%
Commercial and industrial loans		14.4	%		13.6	%		13.8	%		13.9	%		13.0	%
Equipment finance		7.0	%		7.5	%		7.8	%		8.0	%		8.5	%
Loans receivable		99.2	%		99.8	%		99.9	%		99.1	%		99.8	%
Loans held for sale		0.8	%		0.2	%		0.1	%		0.9	%		0.2	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

New loan production was $329.6 million for the second quarter of 2025 with an average rate of 7.10%, while payoffs were $119.1 million during the quarter at an average rate of 6.47%.

Commercial real estate loan production for the second quarter of 2025 was $112.0 million. Residential mortgage loan production was $83.8 million. Commercial and industrial loan production was $53.4 million, SBA loan production was $46.8 million, and equipment finance production was $33.6 million.

	For the Three Months Ended (in thousands)
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
New Loan Production
Commercial real estate loans	$	111,993		$	146,606		$	146,716		$	110,246		$	87,632
Residential/consumer loans		83,761			55,000			40,225			40,758			30,194
Commercial and industrial loans		53,444			42,344			60,159			105,086			59,007
SBA loans		46,829			55,242			49,740			51,616			54,486
Equipment finance		33,567			46,749			42,168			40,066			42,594
Subtotal		329,594			345,941			339,008			347,772			273,913


Payoffs		(119,139	)		(125,102	)		(137,933	)		(77,603	)		(148,400	)
Amortization		(151,357	)		(90,743	)		(60,583	)		(151,674	)		(83,640	)
Loan sales		(35,388	)		(42,193	)		(67,852	)		(43,868	)		(42,945	)
Net line utilization		12,435			(53,901	)		(75,651	)		9,426			1,929
Charge-offs & OREO		(12,377	)		(3,190	)		(3,356	)		(2,668	)		(2,338	)

Loans receivable-beginning balance		6,282,189			6,251,377			6,257,744			6,176,359			6,177,840
Loans receivable-ending balance	$	6,305,957		$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359

Deposits were $6.73 billion at the end of the second quarter of 2025, up $109.6 million, or 1.7%, from $6.62 billion at the end of the prior quarter. Driving the change was a $42.7 million increase in time deposits, a $38.7 million increase in noninterest-bearing demand deposits and a $18.9 million increase in money market and savings deposits. Noninterest-bearing demand deposits represented 31.3% of total deposits at June 30, 2025 and the loan-to-deposit ratio was 93.7%.

	As of (in thousands)										Percentage Change
	Jun 30,		Mar 31,		Dec 31,		Sep 30,		Jun 30,		Q2-25			Q2-25
	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,105,369	$	2,066,659	$	2,096,634	$	2,051,790	$	1,959,963		1.9	%		7.4	%
Demand: interest-bearing		90,172		80,790		80,323		79,287		82,981		11.6	%		8.7	%
Money market and savings		2,092,847		2,073,943		1,933,535		1,898,834		1,834,797		0.9	%		14.1	%
Time deposits		2,440,734		2,398,083		2,325,284		2,373,310		2,451,599		1.8	%		-0.4	%
Total deposits	$	6,729,122	$	6,619,475	$	6,435,776	$	6,403,221	$	6,329,340		1.7	%		6.3	%

	As of
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
Composition of Deposit Portfolio
Demand: noninterest-bearing		31.3	%		31.2	%		32.6	%		32.0	%		31.0	%
Demand: interest-bearing		1.3	%		1.2	%		1.2	%		1.2	%		1.3	%
Money market and savings		31.1	%		31.3	%		30.0	%		29.7	%		29.0	%
Time deposits		36.3	%		36.3	%		36.2	%		37.1	%		38.7	%
Total deposits		100.0	%		100.0	%		100.1	%		100.0	%		100.0	%

Stockholders’ equity at June 30, 2025 was $762.8 million, up $11.3 million from $751.5 million at March 31, 2025. The increase included net income, net of dividends paid, of $7.0 million for the second quarter. In addition, the increase in stockholders’ equity included a $5.5 million decrease in unrealized after-tax losses on securities available for sale, due to changes in interest rates during the second quarter of 2025. Hanmi also repurchased 70,000 shares of common stock at a cost of $1.6 million, for an average share price of $23.26, during the quarter. At June 30, 2025, 1,110,500 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $751.8 million, or 9.58% of tangible assets at June 30, 2025 compared with $740.5 million, or 9.59% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At June 30, 2025, Hanmi’s preliminary common equity tier 1 capital ratio was 12.12% and its total risk-based capital ratio was 15.20%, compared with 12.12% and 15.28%, respectively, at the end of the prior quarter.

	As of															Ratio Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Q2-25		Q2-25
	2025			2025			2024			2024			2024			vs. Q1-25		vs. Q2-24
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital		15.20	%		15.28	%		15.24	%		15.03	%		15.24	%		-0.08		-0.04
Tier 1 risk-based capital		12.46	%		12.46	%		12.46	%		12.29	%		12.46	%		0.00		0.00
Common equity tier 1 capital		12.12	%		12.12	%		12.11	%		11.95	%		12.11	%		0.00		0.01
Tier 1 leverage capital ratio		10.63	%		10.67	%		10.63	%		10.56	%		10.51	%		-0.04		0.12
Hanmi Bank
Total risk-based capital		14.39	%		14.47	%		14.43	%		14.27	%		14.51	%		-0.08		-0.12
Tier 1 risk-based capital		13.32	%		13.34	%		13.36	%		13.23	%		13.47	%		-0.02		-0.15
Common equity tier 1 capital		13.32	%		13.34	%		13.36	%		13.23	%		13.47	%		-0.02		-0.15
Tier 1 leverage capital ratio		11.43	%		11.49	%		11.47	%		11.43	%		11.41	%		-0.06		0.02

_{⁽¹⁾Preliminary ratios for June 30, 2025}

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.17% of loans at the end of the second quarter of 2025, compared with 0.28% at the end of the prior quarter.

Criticized loans totaled $46.6 million at June 30, 2025, down from $164.9 million at the end of the prior quarter. The $118.3 million decrease resulted from a $105.7 million decrease in special mention loans, and a $12.6 million decrease in classified loans. The $105.7 million decrease in special mention loans included loan upgrades of $85.3 million of two commercial real estate loans, paydowns of $20.0 million and amortization of $0.7 million, offset by downgrades of $0.3 million. The $12.6 million decrease in classified loans resulted from $8.7 million of loan charge-offs (primarily due to the previously mentioned $8.6 million commercial real estate loan charge-off), $2.9 million of equipment financing charge-offs, $1.6 million of amortization/paydowns, $4.0 million of loan upgrades and, $0.2 million of payoffs, offset by $4.8 million in additions. Additions included newly classified equipment financing agreements of $2.4 million and loan downgrades of $2.4 million.

Nonperforming loans were $26.0 million at June 30, 2025, down from $35.6 million at the end of the prior quarter. The $9.6 million decrease primarily reflected charge-offs of $11.6 million, $1.3 million in paydowns, loan upgrades of $1.0 million, and pay-offs of $0.2 million. Additions included $2.1 million of loans and $2.5 million of equipment financing agreements.

Nonperforming assets were $26.0 million at June 30, 2025, down from $35.7 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.33% at June 30, 2025, and 0.46% at the end of the prior quarter.

Gross charge-offs for the second quarter of 2025 were $12.4 million, compared with $3.2 million for the preceding quarter. The increase in gross charge-offs was primarily due to a $8.6 million charge-off on a commercial real estate loan designated as nonaccrual during the first quarter of 2025. Charge-offs during the second quarter also included $2.9 million on equipment financing agreements. Recoveries of previously charged-off loans were $1.0 million in the second quarter of 2025, which included $0.6 million of recoveries on equipment financing agreements. As a result, there were $11.4 million of net charge-offs for the second quarter of 2025, compared to $1.9 million for the prior quarter.

The allowance for credit losses was $66.8 million at June 30, 2025, compared with $70.6 million at March 31, 2025. Collectively evaluated allowances increased $3.8 million and specific allowances for loans decreased $7.6 million. The decrease in specific allowances was a result of the previously mentioned $8.6 million charge-off. The ratio of the allowance for credit losses to loans was 1.06% at June 30, 2025 and 1.12% at the end of the prior quarter.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,			Q2-25			Q2-25
	2025			2025			2024			2024			2024			vs. Q1-25			vs. Q2-24
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	10,953		$	17,312		$	18,454		$	15,027		$	13,844		$	(6,359	)	$	(2,891	)
Delinquent loans to total loans		0.17	%		0.28	%		0.30	%		0.24	%		0.22	%		(0.11	)		(0.05	)

Criticized loans:
Special mention	$	12,701		$	118,380		$	139,612		$	131,575		$	36,921		$	(105,679	)	$	(24,220	)
Classified		33,857			46,519			25,683			28,377			33,945			(12,662	)		(88	)
Total criticized loans ⁽¹⁾	$	46,558		$	164,899		$	165,295		$	159,952		$	70,866		$	(118,341	)	$	(24,308	)

Criticized loans to total loans		0.74	%		2.62	%		2.64	%		2.56	%		1.15	%		(1.88	)		(0.41	)

Nonperforming assets:
Nonaccrual loans	$	25,968		$	35,459		$	14,272		$	15,248		$	19,245		$	(9,491	)	$	6,723
Loans 90 days or more past due and still accruing		–			112			–			242			–			(112	)		–
Nonperforming loans ⁽²⁾		25,968			35,571			14,272			15,490			19,245			(9,603	)		6,723
Other real estate owned, net		–			117			117			772			772			(117	)		(772	)
Nonperforming assets ⁽³⁾	$	25,968		$	35,688		$	14,389		$	16,262		$	20,017		$	(9,720	)	$	5,951

Nonperforming assets to assets ⁽²⁾		0.33	%		0.46	%		0.19	%		0.21	%		0.26	%		-0.13			0.07
Nonperforming loans to total loans		0.41	%		0.57	%		0.23	%		0.25	%		0.31	%		-0.16			0.10

_{⁽¹⁾Includes nonaccrual loans of $24.1 million, $34.4 million, $13.4 million, $13.6 million, and $18.4 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.}
_{⁽²⁾Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.}
_{⁽³⁾Excludes repossessed personal property of $0.6 million, $0.7 million, $0.6 million, $1.2 million, and $1.2 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.}

	As of or for the Three Months Ended (in thousands)
	Jun 30,			Mar 31,			Dec 31,			Sep 30,			Jun 30,
	2025			2025			2024			2024			2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	70,597		$	70,147		$	69,163		$	67,729		$	68,270
Credit loss expense (recovery) on loans		7,524			2,396			855			2,312			1,248
Net loan (charge-offs) recoveries		(11,365	)		(1,946	)		129			(878	)		(1,789	)
Balance at end of period	$	66,756		$	70,597		$	70,147		$	69,163		$	67,729

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		0.73	%		0.13	%		-0.01	%		0.06	%		0.12	%
Allowance for credit losses to loans		1.06	%		1.12	%		1.12	%		1.11	%		1.10	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,399		$	2,074		$	1,984		$	2,010		$	2,297
Credit loss expense (recovery) on off-balance sheet items		107			325			90			(26	)		(287	)
Balance at end of period	$	2,506		$	2,399		$	2,074		$	1,984		$	2,010

Unused commitments to extend credit	$	915,847		$	896,282		$	782,587		$	739,975		$	795,391

_{⁽¹⁾Annualized}

Corporate Developments
On April 24, 2025, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2025 second quarter of $0.27 per share. Hanmi paid the dividend on May 21, 2025, to stockholders of record as of the close of business on May 5, 2025.

Earnings Conference Call
Hanmi Bank will host its second quarter 2025 earnings conference call today, July 22, 2025, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

About Hanmi Financial Corporation
Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

Forward-Looking Statements
This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

a failure to maintain adequate levels of capital and liquidity to support our operations;
general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
volatility and deterioration in the credit and equity markets;
changes in investor sentiment or consumer spending, borrowing and savings habits;
availability of capital from private and government sources;
demographic changes;
competition for loans and deposits and failure to attract or retain loans and deposits;
inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
our ability to enter new markets successfully and capitalize on growth opportunities;
the current or anticipated impact of military conflict, terrorism or other geopolitical events;
the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
risks of natural disasters;
legal proceedings and litigation brought against us;
a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
the failure to maintain current technologies;
risks associated with Small Business Administration loans;
failure to attract or retain key employees;
our ability to access cost-effective funding;
the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;
changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
fluctuations in real estate values;
changes in accounting policies and practices;
changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
strategic transactions we may enter into;
the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses;
our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
our ability to control expenses; and
cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

Investor Contacts:
Romolo (Ron) Santarosa
Senior Executive Vice President & Chief Financial Officer
213-427-5636

Lisa Fortuna
Investor Relations
Financial Profiles, Inc.
lfortuna@finprofiles.com
310-622-8251

Hanmi Financial Corporation and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(Dollars in thousands)

	June 30,			March 31,			Percentage			June 30,			Percentage
	2025			2025			Change			2024			Change
Assets
Cash and due from banks	$	380,050		$	329,003			15.5	%	$	313,079			21.4	%
Securities available for sale, at fair value		918,094			907,011			1.2	%		877,638			4.6	%
Loans held for sale, at the lower of cost or fair value		49,611			11,831			319.3	%		10,467			374.0	%
Loans receivable, net of allowance for credit losses		6,239,201			6,211,592			0.4	%		6,108,630			2.1	%
Accrued interest receivable		23,749			23,536			0.9	%		23,958			-0.9	%
Premises and equipment, net		20,607			20,866			-1.2	%		21,955			-6.1	%
Customers’ liability on acceptances		214			552			-61.2	%		551			-61.2	%
Servicing assets		6,420			6,422			0.0	%		6,836			-6.1	%
Goodwill and other intangible assets, net		11,031			11,031			0.0	%		11,048			-0.2	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		56,985			57,476			-0.9	%		56,534			0.8	%
Prepaid expenses and other assets		140,016			133,330			5.0	%		139,266			0.5	%
Total assets	$	7,862,363		$	7,729,035			1.7	%	$	7,586,347			3.6	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,105,369		$	2,066,659			1.9	%	$	1,959,963			7.4	%
Interest-bearing		4,623,753			4,552,816			1.6	%		4,369,377			5.8	%
Total deposits		6,729,122			6,619,475			1.7	%		6,329,340			6.3	%
Accrued interest payable		30,567			29,646			3.1	%		47,699			-35.9	%
Bank’s liability on acceptances		214			552			-61.2	%		551			-61.2	%
Borrowings		127,500			117,500			8.5	%		292,500			-56.4	%
Subordinated debentures		130,960			130,799			0.1	%		130,318			0.5	%
Accrued expenses and other liabilities		81,166			79,578			2.0	%		78,880			2.9	%
Total liabilities		7,099,529			6,977,550			1.7	%		6,879,288			3.2	%

Stockholders’ equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		592,825			591,942			0.1	%		588,647			0.7	%
Accumulated other comprehensive (loss)		(54,511	)		(60,002	)		9.2	%		(78,000	)		30.1	%
Retained earnings		367,251			360,289			1.9	%		333,392			10.2	%
Less treasury stock		(142,765	)		(140,778	)		-1.4	%		(137,014	)		-4.2	%
Total stockholders’ equity		762,834			751,485			1.5	%		707,059			7.9	%
Total liabilities and stockholders’ equity	$	7,862,363		$	7,729,035			1.7	%	$	7,586,347			3.6	%

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Three Months Ended
	June 30,		March 31,		Percentage			June 30,		Percentage
	2025		2025		Change			2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	92,589	$	90,887		1.9	%	$	90,752		2.0	%
Interest on securities		6,261		6,169		1.5	%		5,238		19.5	%
Dividends on FHLB stock		354		360		-1.7	%		357		-0.8	%
Interest on deposits in other banks		2,129		1,841		15.6	%		2,313		-8.0	%
Total interest and dividend income		101,333		99,257		2.1	%		98,660		2.7	%
Interest expense:
Interest on deposits		41,924		40,559		3.4	%		46,495		-9.8	%
Interest on borrowings		684		2,024		-66.2	%		1,896		-63.9	%
Interest on subordinated debentures		1,586		1,582		0.3	%		1,649		-3.8	%
Total interest expense		44,194		44,165		0.1	%		50,040		-11.7	%
Net interest income before credit loss expense		57,139		55,092		3.7	%		48,620		17.5	%
Credit loss expense		7,631		2,721		180.4	%		961		694.1	%
Net interest income after credit loss expense		49,508		52,371		-5.5	%		47,659		3.9	%
Noninterest income:
Service charges on deposit accounts		2,169		2,217		-2.2	%		2,429		-10.7	%
Trade finance and other service charges and fees		1,461		1,396		4.7	%		1,277		14.4	%
Gain on sale of Small Business Administration (“SBA”) loans		2,160		2,000		8.0	%		1,644		31.4	%
Other operating income		2,281		2,113		8.0	%		2,707		-15.7	%
Total noninterest income		8,071		7,726		4.5	%		8,057		0.2	%
Noninterest expense:
Salaries and employee benefits		22,069		20,972		5.2	%		20,434		8.0	%
Occupancy and equipment		4,344		4,450		-2.4	%		4,607		-5.7	%
Data processing		3,727		3,787		-1.6	%		3,686		1.1	%
Professional fees		1,725		1,468		17.5	%		1,749		-1.4	%
Supplies and communications		515		517		-0.4	%		570		-9.6	%
Advertising and promotion		798		585		36.4	%		669		19.3	%
Other operating expenses		3,169		3,205		-1.1	%		3,561		-11.0	%
Total noninterest expense		36,347		34,984		3.9	%		35,276		3.0	%
Income before tax		21,232		25,113		-15.5	%		20,440		3.9	%
Income tax expense		6,115		7,441		-17.8	%		5,989		2.1	%
Net income	$	15,117	$	17,672		-14.5	%	$	14,451		4.6	%

Basic earnings per share:	$	0.50	$	0.59				$	0.48
Diluted earnings per share:	$	0.50	$	0.58				$	0.48

Weighted-average shares outstanding:
Basic		29,948,836		29,937,660					30,055,913
Diluted		30,054,456		30,058,248					30,133,646
Common shares outstanding		30,176,568		30,233,514					30,272,110

Hanmi Financial Corporation and Subsidiaries
Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except share and per share data)

	Six Months Ended
	June 30,		June 30,		Percentage
	2025		2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	183,476	$	182,427		0.6	%
Interest on securities		12,430		10,193		21.9	%
Dividends on FHLB stock		714		719		-0.7	%
Interest on deposits in other banks		3,969		4,914		-19.2	%
Total interest and dividend income		200,589		198,253		1.2	%
Interest expense:
Interest on deposits		82,483		92,133		-10.5	%
Interest on borrowings		2,708		3,551		-23.7	%
Interest on subordinated debentures		3,167		3,295		-3.9	%
Total interest expense		88,358		98,979		-10.7	%
Net interest income before credit loss expense		112,231		99,274		13.1	%
Credit loss expense		10,352		1,188		771.4	%
Net interest income after credit loss expense		101,879		98,086		3.9	%
Noninterest income:
Service charges on deposit accounts		4,387		4,878		-10.1	%
Trade finance and other service charges and fees		2,858		2,691		6.2	%
Gain on sale of Small Business Administration (“SBA”) loans		4,161		3,126		33.1	%
Other operating income		4,390		5,095		-13.8	%
Total noninterest income		15,796		15,790		0.0	%
Noninterest expense:
Salaries and employee benefits		43,041		42,019		2.4	%
Occupancy and equipment		8,794		9,144		-3.8	%
Data processing		7,514		7,237		3.8	%
Professional fees		3,194		3,642		-12.3	%
Supplies and communications		1,031		1,172		-12.0	%
Advertising and promotion		1,382		1,576		-12.3	%
Other operating expenses		6,374		6,930		-8.0	%
Total noninterest expense		71,330		71,720		-0.5	%
Income before tax		46,345		42,156		9.9	%
Income tax expense		13,556		12,541		8.1	%
Net income	$	32,789	$	29,615		10.7	%

Basic earnings per share:	$	1.09	$	0.98
Diluted earnings per share:	$	1.08	$	0.97

Weighted-average shares outstanding:
Basic		29,943,279		30,089,341
Diluted		30,048,704		30,166,181
Common shares outstanding		30,176,568		30,272,110

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 2024
				Interest		Average						Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,257,741		$	92,589		5.93	%	$	6,189,531		$	90,887		5.95	%	$	6,089,440		$	90,752		5.99	%
Securities ⁽²⁾		993,975			6,261		2.55	%		1,001,499			6,169		2.49	%		979,671			5,238		2.17	%
FHLB stock		16,385			354		8.65	%		16,385			360		8.92	%		16,385			357		8.77	%
Interest-bearing deposits in other banks		200,266			2,129		4.26	%		176,028			1,841		4.24	%		180,177			2,313		5.16	%
Total interest-earning assets		7,468,367			101,333		5.44	%		7,383,443			99,257		5.45	%		7,265,673			98,660		5.46	%

Noninterest-earning assets:
Cash and due from banks		53,977								53,670								55,442
Allowance for credit losses		(70,222	)							(69,648	)							(67,908	)
Other assets		250,241								249,148								252,410

Total assets	$	7,702,363							$	7,616,613							$	7,505,617

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	81,308		$	29		0.15	%	$	79,369		$	27		0.14	%	$	85,443		$	32		0.15	%
Money market and savings		2,109,221			17,342		3.30	%		2,037,224			16,437		3.27	%		1,845,870			17,324		3.77	%
Time deposits		2,434,659			24,553		4.05	%		2,345,346			24,095		4.17	%		2,453,154			29,139		4.78	%
Total interest-bearing deposits		4,625,188			41,924		3.64	%		4,461,939			40,559		3.69	%		4,384,467			46,495		4.27	%
Borrowings		60,134			684		4.58	%		179,444			2,024		4.57	%		169,525			1,896		4.50	%
Subordinated debentures		130,880			1,586		4.84	%		130,718			1,582		4.84	%		130,239			1,649		5.07	%
Total interest-bearing liabilities		4,816,202			44,194		3.68	%		4,772,101			44,165		3.75	%		4,684,231			50,040		4.30	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,934,985								1,895,953								1,883,765
Other liabilities		140,053								144,654								162,543
Stockholders’ equity		811,123								803,905								775,078

Total liabilities and stockholders’ equity	$	7,702,363							$	7,616,613							$	7,505,617

Net interest income				$	57,139							$	55,092							$	48,620

Cost of deposits							2.56	%							2.59	%							2.98	%
Net interest spread (taxable equivalent basis)							1.76	%							1.70	%							1.16	%
Net interest margin (taxable equivalent basis)							3.07	%							3.02	%							2.69	%

_{⁽¹⁾Includes average loans held for sale}
_{⁽²⁾Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.}

Hanmi Financial Corporation and Subsidiaries
Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
(Dollars in thousands)

	Six Months Ended
	June 30, 2025								June 30, 2024
				Interest		Average						Interest		Average
	Average			Income /		Yield /			Average			Income /		Yield /
	Balance			Expense		Rate			Balance			Expense		Rate
Assets
Interest-earning assets:
Loans receivable ⁽¹⁾	$	6,223,825		$	183,476		5.94	%	$	6,113,664		$	182,427		6.00	%
Securities ⁽²⁾		997,716			12,430		2.52	%		974,596			10,193		2.12	%
FHLB stock		16,385			714		8.79	%		16,385			719		8.82	%
Interest-bearing deposits in other banks		188,214			3,969		4.25	%		190,950			4,914		5.18	%
Total interest-earning assets		7,426,140			200,589		5.44	%		7,295,595			198,253		5.46	%

Noninterest-earning assets:
Cash and due from banks		53,824								56,912
Allowance for credit losses		(69,936	)							(68,507	)
Other assets		249,697								248,555

Total assets	$	7,659,725							$	7,532,555

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	80,344		$	56		0.14	%	$	85,922		$	61		0.14	%
Money market and savings		2,073,421			33,779		3.29	%		1,830,478			33,877		3.72	%
Time deposits		2,390,249			48,648		4.10	%		2,480,492			58,195		4.72	%
Total interest-bearing deposits		4,544,014			82,483		3.66	%		4,396,892			92,133		4.21	%
Borrowings		119,460			2,708		4.57	%		165,972			3,551		4.30	%
Subordinated debentures		130,799			3,167		4.84	%		130,163			3,295		5.06	%
Total interest-bearing liabilities		4,794,273			88,358		3.72	%		4,693,027			98,979		4.24	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,915,577								1,902,477
Other liabilities		142,341								163,533
Stockholders’ equity		807,534								773,518

Total liabilities and stockholders’ equity	$	7,659,725							$	7,532,555

Net interest income				$	112,231							$	99,274

Cost of deposits							2.58	%							2.94	%
Net interest spread (taxable equivalent basis)							1.73	%							1.22	%
Net interest margin (taxable equivalent basis)							3.05	%							2.74	%

_{⁽¹⁾Includes average loans held for sale}
_{⁽²⁾Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.}

Non-GAAP Financial Measures

These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

Tangible Common Equity to Tangible Assets Ratio

Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi.

The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

Tangible Common Equity to Tangible Assets Ratio (Unaudited)
(In thousands, except share, per share data and ratios)

	June 30,			March 31,			December 31,			September 30,			June 30,
Hanmi Financial Corporation	2025			2025			2024			2024			2024
Assets	$	7,862,363		$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,048	)
Tangible assets	$	7,851,332		$	7,718,004		$	7,666,894		$	7,701,268		$	7,575,299

Stockholders’ equity ⁽¹⁾	$	762,834		$	751,485		$	732,174		$	736,709		$	707,059
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,031	)		(11,048	)
Tangible stockholders’ equity ⁽¹⁾	$	751,803		$	740,454		$	721,143		$	725,678		$	696,011

Stockholders’ equity to assets		9.70	%		9.72	%		9.54	%		9.55	%		9.32	%
Tangible common equity to tangible assets ⁽¹⁾		9.58	%		9.59	%		9.41	%		9.42	%		9.19	%

Common shares outstanding		30,176,568			30,233,514			30,195,999			30,196,755			30,272,110
Tangible common equity per common share	$	24.91		$	24.49		$	23.88		$	24.03		$	22.99

_{⁽¹⁾There were no preferred shares outstanding at the periods indicated.}

Preprovision Net Revenue

Preprovision net revenue is supplemental financial information determined by a method other than in accordance with U.S. GAAP. This non-GAAP measure is used by management to measure Hanmi’s core operational performance, excluding the impact of provisions for loan losses. By isolating preprovision net revenue, management can better understand the Company’s profitability and make more informed strategic decisions. Preprovision net revenue is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company’s net revenue activities and operational efficiency, excluding unpredictable credit loss expense.

The following table details the Company’s preprovision net revenue, which are non-GAAP measures, for the periods indicated:

Preprovision Net Revenue (Unaudited)
(In thousands, except percentages)

											Percentage Change
	June 30,		March 31,		December 31,		September 30,		June 30,		Q2-25			Q2-25
Hanmi Financial Corporation	2025		2025		2024		2024		2024		vs. Q1-25			vs. Q2-24
Net income	$	15,117	$	17,672	$	17,695	$	14,892	$	14,451
Add back:
Credit loss expense		7,631		2,721		945		2,286		961
Income tax expense		6,115		7,441		7,632		6,231		5,989
Preprovision net revenue	$	28,863	$	27,834	$	26,272	$	23,409	$	21,401		3.7	%		34.9	%

The MIL Network –

July 23, 2025

MIL-OSI: Middlefield Banc Corp. Reports 2025 Six-Month Financial Results

Source: GlobeNewswire (MIL-OSI)

MIDDLEFIELD, Ohio, July 22, 2025 (GLOBE NEWSWIRE) — Middlefield Banc Corp. (NASDAQ: MBCN) today reported financial results for the six months ended June 30, 2025.

2025 Second-Quarter Financial Highlights (on a year-over-year basis):

	●	Earnings per share increased 46.2% year-over-year to $0.76 per diluted share
	●	Asset quality improved from the 2024 fourth quarter with nonperforming assets to total assets decreasing by 32 basis points to 1.30%
	●	Net interest margin expanded 37 basis points to 3.88% and increased 19 basis points from the 2025 first quarter
	●	Total loans increased $84.2 million, or 5.6% to a record $1.58 billion
	●	Total assets increased $96.2 million, or 5.3% to a record $1.92 billion
	●	Book value increased 4.3% to $26.74 from $25.63 per share, while tangible book value⁽¹⁾ increased 6.1% to $21.60 from $20.37 per share

⁽¹⁾ See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”

“The second quarter of 2025 was another strong quarter of growth, profitability and value creation for Middlefield,” stated Ronald L. Zimmerly, Jr., President and Chief Executive Officer. “Total loans have increased at an 8.2% annualized rate since the beginning of the year to a record $1.58 billion, asset quality continued to improve sequentially, and our net interest margin for the second quarter of 2025 expanded 37 basis points year-over-year to 3.88%. These results led to strong growth in profitability during the quarter. Net income also benefited from a $1.2 million net gain on the exchange of real estate associated with the relocation of our Westerville, Ohio branch. Relocating our Westerville office is a great opportunity, supported by favorable demographics and underscores our multi-year strategy to expand our presence in the Central Ohio region. We expect our new Westerville branch to open in the second half of 2025.”

“I am pleased by the strong start to 2025 and the direction we are headed. We remain focused on investing in our platform, which includes upgrades to our technology infrastructure, adding new, experienced commercial bankers, and pursuing opportunities to expand Middlefield across our compelling Ohio markets. As a result of these efforts and the contributions of our high-performing team, we expect additional loan and core deposit growth to benefit profitability throughout the remainder of 2025,” concluded Mr. Zimmerly.

Income Statement
Net interest income for the 2025 second quarter increased 15.6% to $17.4 million, compared to $15.1 million for the 2024 second quarter. The net interest margin for the 2025 second quarter was 3.88%, compared to 3.51% for the same period of 2024. Net interest income for the six months ended June 30, 2025, increased 11.6% to $33.5 million, compared to $30.1 million for the same period last year. The increase was primarily due to strong loan growth, a decrease in FHLB advances, and an overall decline in rates for deposits. Net interest margin for the six months ended June 30, 2025, was 3.79%, compared to 3.53% last year.

Noninterest income for the 2025 second quarter was $3.1 million, compared to $1.8 million for the same period the previous year. For the six months ended June 30, 2025, noninterest income increased $1.5 million to $5.0 million, compared to $3.6 million for the same period in 2024. In April 2025, Middlefield completed an exchange of real estate with the City of Westerville, Ohio for a parcel of land that had a fair value of $1.5 million. In exchange, Middlefield transferred land and a building with related furnishings associated with its current branch located in Westerville, Ohio. The transferred branch had a net book value of $221,000. The exchange of real estate transaction resulted in a one-time, non-cash gain of $1.2 million.

For the 2025 second quarter, noninterest expense was $13.7 million, compared to $11.9 million for the 2024 second quarter. Noninterest expense for the six months ended June 30, 2025, was $25.8 million, compared to $23.9 million for the same period in 2024. Noninterest expense for the 2025 second quarter included a $700,000 loss associated with recording a separate property located in Westerville, Ohio as held for sale.

Net income for the 2025 second quarter was $6.2 million, or $0.76 per diluted share, compared to $4.2 million, or $0.52 per diluted share, for the same period last year. Net income for the six months ended June 30, 2025, was $11.0 million, or $1.36 per diluted share, compared to $8.3 million, or $1.03 per diluted share, for the same period last year.

For the 2025 second quarter, pre-tax, pre-provision net income was $6.9 million, compared to $4.9 million for the same period of 2024. For the six months ended June 30, 2025, pre-tax, pre-provision net income was $12.7 million, compared to $9.7 million for the same period last year. (See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.)

Balance Sheet
Total assets at June 30, 2025, increased 5.3% to a record $1.92 billion, compared to $1.83 billion at June 30, 2024. Total loans at June 30, 2025, were a record $1.58 billion, compared to $1.50 billion at June 30, 2024. The 5.6% year-over-year increase in total loans was primarily due to higher home equity lines of credit, commercial and industrial loans, residential real estate loans, non-owner occupied, and owner occupied loans, partially offset by a reduction in construction and other loans and multifamily loans.

The investment securities available-for-sale portfolio was $161.1 million at June 30, 2025, compared with $166.4 million at June 30, 2024.

Total liabilities at June 30, 2025, increased 5.4% to $1.71 billion, compared to $1.62 billion at June 30, 2024. Total deposits at June 30, 2025, were $1.59 billion, compared to $1.47 billion at June 30, 2024. The 8.4% year-over-year increase in deposits was primarily due to growth in money market and interest-bearing demand deposits, partially offset by declines in savings deposit accounts. Noninterest-bearing demand deposits were 24.2% of total deposits at June 30, 2025, compared to 26.3% at June 30, 2024. At June 30, 2025, the Company had brokered deposits of $165.1 million, compared to $86.5 million at June 30, 2024.

Michael C. Ranttila, Chief Financial Officer, stated, “Middlefield’s highly profitable financial model, disciplined loan pricing, and strong liquidity levels provides us with the flexibility to support both loan and operational growth. We continue to monitor our funding mix to support our loan portfolio at a reasonable cost, and such actions contributed to a seven-basis point reduction in our cost of funds since the beginning of the year. Throughout the second half of 2025, we are focused on growing core deposits by improving the mix of commercial and industrial loans and growing treasury management relationships.”

Middlefield’s CRE portfolio included the following categories at June 30, 2025:

(Dollar amounts in thousands)	Balance		Percent of CRE Portfolio			Percent of Loan Portfolio			Weighted Average Loan-to-Value

Multi-Family	$	79,497		11.7	%		5.0	%		64.7	%
Owner Occupied
Real Estate and Rental and Leasing		56,806		8.3	%		3.6	%		55.6	%
Other Services (except Public Administration)		40,734		6.0	%		2.6	%		58.2	%
Manufacturing		17,919		2.6	%		1.1	%		44.4	%
Agriculture, Forestry, Fishing and Hunting		12,318		1.8	%		0.8	%		36.3	%
Educational Services		11,844		1.7	%		0.7	%		50.1	%
Other		57,024		8.3	%		3.6	%		54.1	%
Total Owner Occupied	$	196,645		28.7	%		12.4	%
Non-Owner Occupied
Real Estate and Rental and Leasing		333,645		49.0	%		21.1	%		54.8	%
Accommodation and Food Services		40,430		5.9	%		2.6	%		57.0	%
Health Care and Social Assistance		19,456		2.9	%		1.2	%		65.9	%
Manufacturing		7,412		1.1	%		0.5	%		46.7	%
Other		4,089		0.7	%		0.3	%		76.4	%
Total Non-Owner Occupied	$	405,032		59.6	%		25.7	%
Total CRE	$	681,174		100.0	%		43.1	%

Stockholders’ Equity and Dividends
At June 30, 2025, stockholders’ equity was $216.1 million, compared to $206.8 million at June 30, 2024. The 4.5% year-over-year increase in stockholders’ equity was primarily from higher retained earnings, partially offset by an increase in the unrealized losses on the available-for-sale investment portfolio. On a per-share basis, shareholders’ equity at June 30, 2025, was $26.74, compared to $25.63 at June 30, 2024.

At June 30, 2025, tangible stockholders’ equity⁽¹⁾ was $174.6 million, compared to $164.3 million at June 30, 2024. On a per-share basis, tangible stockholders’ equity⁽¹⁾ was $21.60 at June 30, 2025, compared to $20.37 at June 30, 2024. ⁽¹⁾See non-GAAP reconciliation under the section “GAAP to Non-GAAP Reconciliations”.

For the six months ended June 30, 2025, the Company declared cash dividends of $0.42 per share, totaling $3.4 million. Beginning in the first quarter of 2025, the Company increased the quarterly cash dividend by $0.01, or 5% from the previous year’s $0.20 per share quarterly cash dividend.

For the six months ended June 30, 2025, the Company did not repurchase any shares of its common stock.

At June 30, 2025, the Company’s equity-to-assets ratio was 11.23%, compared to 11.31% at June 30, 2024.

Asset Quality
For the six months ended June 30, 2025, the Company recorded a recovery of credit losses of $411,000, compared to a recovery of credit losses of $49,000 for the same period of 2024.

Net recoveries were $227,000, or (0.03%) of average loans, annualized, for the six months ended June 30, 2025, compared to net recoveries of $97,000, or (0.01%) of average loans, annualized, for the same period of 2024.

Nonperforming loans at June 30, 2025, were $25.1 million, compared to $16.0 million at June 30, 2024. The year-over-year increase in nonperforming assets was primarily due to a $12.0 million loan moved to nonaccrual in the 2024 third quarter. The allowance for credit losses at June 30, 2025, stood at $22.3 million, or 1.41% of total loans, compared to $21.8 million, or 1.46% of total loans at June 30, 2024. The increase in the allowance for credit losses was mainly from changes in projected loss drivers, prepayment assumptions, curtailment expectations over the reasonable and supportable forecast period, and geographic footprint of unemployment data, as well as an overall increase in total loans.

Mr. Ranttila continued, “Asset quality demonstrates the success of our disciplined approach to credit quality and risk management, as nonperforming assets to total assets have improved to 1.30% at June 30, 2025, compared to 1.56% at March 31, 2025, and 1.62% at December 31, 2024. Over the past six months, non-performing assets declined by $4.9 million from $30.0 million at December 31, 2024, primarily as a result of the successful payoff of one previously disclosed non-accruing loan. In addition, reductions in the reserve against individually analyzed loans as well as the reserve for unfunded commitments drove a $506,000 recovery for credit losses in the second quarter. We continue to expect stable economic activity across our Central, Western and Northeast Ohio markets that will support loan demand and asset quality throughout 2025.”

About Middlefield Banc Corp.
Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the Bank holding Company of The Middlefield Banking Company, with total assets of $1.92 billion at June 30, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

Additional information is available at www.middlefieldbank.bank

NON-GAAP FINANCIAL MEASURES
This press release includes disclosure of Middlefield Banc Corp.’s tangible book value per share, return on average tangible equity, and pre-tax, pre-provision for loan losses income, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts required to be disclosed by GAAP. Middlefield Banc Corp. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Middlefield Banc Corp.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the following Consolidated Financial Highlights tables below.

FORWARD-LOOKING STATEMENTS
This press release of Middlefield Banc Corp. and the reports Middlefield Banc Corp. files with the Securities and Exchange Commission often contain “forward-looking statements” relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations, markets and products of Middlefield Banc Corp. These forward-looking statements involve certain risks and uncertainties. There are several important factors that could cause Middlefield Banc Corp.’s future results to differ materially from historical performance or projected performance. These factors include, but are not limited to: (1) a significant increase in competitive pressures among financial institutions; (2) changes in the interest rate environment that may reduce interest margins; (3) changes in prepayment speeds, charge-offs and loan loss provisions; (4) less favorable than expected general economic conditions; (5) legislative or regulatory changes that may adversely affect businesses in which Middlefield Banc Corp. is engaged; (6) technological issues which may adversely affect Middlefield Banc Corp.’s financial operations or customers; (7) changes in the securities markets; or (8) risk factors mentioned in the reports and registration statements Middlefield Banc Corp. files with the Securities and Exchange Commission. Middlefield Banc Corp. undertakes no obligation to release revisions to these forward-looking statements or to reflect events or circumstances after the date of this press release.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	June 30,		March 31,		December 31,		September 30,		June 30,
Balance Sheets (period end)	2025		2025		2024		2024		2024
ASSETS
Cash and due from banks	$	59,145	$	56,150	$	46,037	$	61,851	$	50,496
Federal funds sold		13,701		10,720		9,755		12,022		1,762
Cash and cash equivalents		72,846		66,870		55,792		73,873		52,258
Investment securities available for sale, at fair value		161,116		165,014		165,802		169,895		166,424
Other investments		1,014		1,021		855		895		881
Loans held for sale		152		–		–		249		–
Loans:
Commercial real estate:
Owner occupied		196,645		185,412		181,447		187,313		182,809
Non-owner occupied		405,032		413,621		412,291		407,159		385,648
Multifamily		79,497		88,737		89,849		94,798		86,951
Residential real estate		357,217		351,274		353,442		345,748		337,121
Commercial and industrial		257,519		235,547		229,034		213,172		234,702
Home equity lines of credit		156,297		147,154		143,379		137,761		131,047
Construction and other		123,531		122,653		103,608		111,550		132,530
Consumer installment		6,187		5,951		6,564		7,030		6,896
Total loans		1,581,925		1,550,349		1,519,614		1,504,531		1,497,704
Less allowance for credit losses		22,335		22,401		22,447		22,526		21,795
Net loans		1,559,590		1,527,948		1,497,167		1,482,005		1,475,909
Premises and equipment, net		20,304		20,494		20,565		20,528		20,744
Premises and equipment held for sale		1,015		–		–		–		–
Goodwill		36,356		36,356		36,356		36,356		36,356
Core deposit intangibles		5,112		5,362		5,611		5,869		6,126
Bank-owned life insurance		35,102		34,866		35,259		35,049		34,802
Accrued interest receivable and other assets		31,762		30,425		35,952		32,916		34,686
TOTAL ASSETS	$	1,924,369	$	1,888,356	$	1,853,359	$	1,857,635	$	1,828,186

	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
LIABILITIES
Deposits:
Noninterest-bearing demand	$	386,248		$	369,492		$	377,875		$	390,933		$	387,024
Interest-bearing demand		221,146			222,953			208,291			218,002			206,542
Money market		466,935			481,664			414,074			376,619			355,630
Savings		184,534			189,943			197,749			199,984			192,472
Time		334,755			275,673			247,704			327,231			327,876
Total deposits		1,593,618			1,539,725			1,445,693			1,512,769			1,469,544
Federal Home Loan Bank advances		89,000			110,000			172,400			106,000			125,000
Other borrowings		11,557			11,609			11,660			11,711			11,762
Accrued interest payable and other liabilities		14,142			13,229			13,044			16,450			15,092
TOTAL LIABILITIES		1,708,317			1,674,563			1,642,797			1,646,930			1,621,398
STOCKHOLDERS’ EQUITY
Common stock, no par value; 25,000,000 shares authorized, 9,960,503 shares issued, 8,081,193 shares outstanding as of June 30, 2025		162,195			162,195			161,999			161,916			161,823
Additional paid-in capital		811			515			246			108			–
Retained earnings		116,892			112,432			109,299			106,067			105,342
Accumulated other comprehensive loss		(22,937	)		(20,440	)		(20,073	)		(16,477	)		(19,468	)
Treasury stock, at cost; 1,879,310 shares as of June 30, 2025		(40,909	)		(40,909	)		(40,909	)		(40,909	)		(40,909	)
TOTAL STOCKHOLDERS’ EQUITY		216,052			213,793			210,562			210,705			206,788

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,924,369		$	1,888,356		$	1,853,359		$	1,857,635		$	1,828,186

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended														For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,		June 30,			June 30,			June 30,
Statements of Income	2025			2025			2024			2024		2024			2025			2024

INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	25,122		$	23,387		$	23,308		$	23,441	$	23,422		$	48,509		$	45,817
Interest-earning deposits in other institutions		325			291			320			348		386			616			823
Federal funds sold		120			155			151			143		122			275			274
Investment securities:
Taxable interest		526			530			528			528		505			1,056			972
Tax-exempt interest		960			960			961			962		966			1,920			1,938
Dividends on stock		183			150			170			191		198			333			387
Total interest and dividend income		27,236			25,473			25,438			25,613		25,599			52,709			50,211
INTEREST EXPENSE
Deposits		8,789			7,885			8,582			8,792		8,423			16,674			15,889
Short-term borrowings		870			1,347			1,128			1,575		1,920			2,217			3,913
Other borrowings		140			143			173			173		173			283			357
Total interest expense		9,799			9,375			9,883			10,540		10,516			19,174			20,159
NET INTEREST INCOME		17,437			16,098			15,555			15,073		15,083			33,535			30,052
Provision for (recovery of) credit losses		(506	)		95			(177	)		2,234		87			(411	)		(49	)
NET INTEREST INCOME AFTER PROVISION
FOR (RECOVERY OF) CREDIT LOSSES		17,943			16,003			15,732			12,839		14,996			33,946			30,101
NONINTEREST INCOME
Service charges on deposit accounts		1,061			989			1,068			959		971			2,050			1,880
Gain (Loss) on equity securities		(7	)		(34	)		56			14		(27	)		(41	)		(79	)
Earnings on bank-owned life insurance		230			493			230			246		227			723			454
Gain on sale of loans		39			24			64			56		69			63			79
Revenue from investment services		310			268			237			206		269			578			473
Gain on exchange of real estate		1,229			–			–			–		–			1,229			–
Gross rental income		–			–			–			–		–			–			67
Other income		216			204			259			262		251			420			682
Total noninterest income		3,078			1,944			1,914			1,743		1,760			5,022			3,556

NONINTEREST EXPENSE
Salaries and employee benefits		6,734			6,557			5,996			6,201		6,111			13,291			12,444
Occupancy expense		667			687			596			627		601			1,354			1,153
Equipment expense		248			225			221			203		261			473			501
Data processing costs		1,273			1,271			1,174			1,214		1,135			2,544			2,417
Ohio state franchise tax		399			399			390			399		397			798			794
Federal deposit insurance expense		267			267			293			255		256			534			507
Professional fees		521			598			611			539		557			1,119			1,115
Advertising expense		451			364			371			283		508			815			927
Software amortization expense		95			90			83			74		21			185			43
Core deposit intangible amortization		250			249			258			257		258			499			516
Loss on premises and equipment held for sale		693			–			–			–		–			693			–
Gross other real estate owned expenses		–			–			–			–		–			–			99
Other expense		2,053			1,486			1,810			1,819		1,797			3,539			3,351
Total noninterest expense		13,651			12,193			11,803			11,871		11,902			25,844			23,867

Income before income taxes		7,370			5,754			5,843			2,711		4,854			13,124			9,790
Income taxes		1,213			924			995			371		690			2,137			1,459

NET INCOME	$	6,157		$	4,830		$	4,848		$	2,340	$	4,164		$	10,987		$	8,331

PTPP ⁽¹⁾	$	6,864		$	5,849		$	5,666		$	4,945	$	4,941		$	12,713		$	9,741

⁽¹⁾ See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(Dollar amounts in thousands, except per share and share amounts, unaudited)

	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2025			2025			2024			2024			2024			2025			2024
Per common share data
Net income per common share – basic	$	0.76		$	0.60		$	0.60		$	0.29		$	0.52		$	1.36		$	1.04
Net income per common share – diluted	$	0.76		$	0.60		$	0.60		$	0.29		$	0.52		$	1.36		$	1.03
Dividends declared per share	$	0.21		$	0.21		$	0.20		$	0.20		$	0.20		$	0.42		$	0.40
Book value per share (period end)	$	26.74		$	26.46		$	26.08		$	26.11		$	25.63		$	26.74		$	25.63
Tangible book value per share (period end) (1) (2)	$	21.60		$	21.29		$	20.88		$	20.87		$	20.37		$	21.60		$	20.37
Dividends declared	$	1,697		$	1,697		$	1,616		$	1,615		$	1,613		$	3,394		$	3,226
Dividend yield		2.80	%		3.05	%		2.84	%		2.76	%		3.34	%		2.81	%		3.34	%
Dividend payout ratio		27.56	%		35.13	%		33.33	%		69.02	%		38.74	%		30.89	%		38.72	%
Average shares outstanding – basic		8,081,193			8,078,805			8,071,905			8,071,032			8,067,144			8,080,006			8,079,174
Average shares outstanding – diluted		8,113,572			8,097,545			8,092,357			8,086,872			8,072,499			8,107,066			8,084,529
Period ending shares outstanding		8,081,193			8,081,193			8,073,708			8,071,032			8,067,144			8,081,193			8,067,144

Selected ratios
Return on average assets (Annualized)		1.29	%		1.04	%		1.04	%		0.50	%		0.91	%		1.17	%		0.91	%
Return on average equity (Annualized)		11.53	%		9.22	%		9.19	%		4.45	%		8.15	%		10.39	%		8.16	%
Return on average tangible common equity ^{(1) (3)}		14.31	%		11.48	%		11.50	%		5.58	%		10.29	%		12.92	%		10.30	%
Efficiency (4)		64.49	%		65.22	%		65.05	%		67.93	%		67.97	%		64.83	%		68.32	%
Equity to assets at period end		11.23	%		11.32	%		11.36	%		11.34	%		11.31	%		11.23	%		11.31	%
Noninterest expense to average assets		0.72	%		0.65	%		0.63	%		0.66	%		0.64	%		1.36	%		1.30	%

⁽¹⁾ See section “GAAP to Non-GAAP Reconciliations” for the reconciliation of GAAP performance measures to non-GAAP measures.

⁽²⁾ Calculated by dividing tangible common equity by shares outstanding.

⁽³⁾ Calculated by dividing annualized net income for each period by average tangible common equity.

⁽⁴⁾ The efficiency ratio is calculated by dividing noninterest expense less amortization of intangibles by the sum of net interest income on a fully taxable equivalent basis plus noninterest income.

	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
Yields	2025			2025			2024			2024			2024			2025			2024
Interest-earning assets:
Loans receivable ⁽¹⁾		6.40	%		6.17	%		6.12	%		6.19	%		6.27	%		6.29	%		6.19	%
Investment securities ^{(1) (2)}		3.64	%		3.69	%		3.63	%		3.62	%		3.59	%		3.67	%		3.56	%
Interest-earning deposits with other banks		4.13	%		3.57	%		4.23	%		4.27	%		4.59	%		3.84	%		4.74	%
Total interest-earning assets		6.03	%		5.81	%		5.78	%		5.84	%		5.92	%		5.92	%		5.85	%
Deposits:
Interest-bearing demand deposits		2.49	%		2.13	%		2.07	%		2.16	%		1.93	%		2.31	%		1.90	%
Money market deposits		3.53	%		3.38	%		3.81	%		3.93	%		3.95	%		3.46	%		3.88	%
Savings deposits		0.86	%		0.82	%		0.75	%		0.71	%		0.64	%		0.84	%		0.61	%
Certificates of deposit		3.66	%		3.93	%		4.21	%		4.49	%		4.57	%		3.79	%		4.32	%
Total interest-bearing deposits		2.95	%		2.82	%		3.05	%		3.17	%		3.15	%		2.89	%		3.02	%
Non-Deposit Funding:
Borrowings		4.54	%		4.58	%		4.93	%		5.54	%		5.60	%		4.56	%		5.60	%
Total interest-bearing liabilities		3.06	%		3.01	%		3.21	%		3.41	%		3.45	%		3.04	%		3.34	%
Cost of deposits		2.21	%		2.10	%		2.24	%		2.33	%		2.30	%		2.16	%		2.19	%
Cost of funds		2.34	%		2.30	%		2.41	%		2.58	%		2.61	%		2.32	%		2.52	%
Net interest margin ⁽³⁾		3.88	%		3.69	%		3.56	%		3.46	%		3.51	%		3.79	%		3.53	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were determined using an effective tax rate of 21%.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

MIDDLEFIELD BANC CORP.
Consolidated Selected Financial Highlights
(unaudited)

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
Asset quality data	2025			2025			2024			2024			2024
(Dollar amounts in thousands, unaudited)
Nonperforming assets ⁽¹⁾	$	25,052		$	29,550		$	29,984		$	30,078		$	15,961

Allowance for credit losses	$	22,335		$	22,401		$	22,447		$	22,526		$	21,795
Allowance for credit losses/total loans		1.41	%		1.44	%		1.48	%		1.50	%		1.46	%
Net charge-offs (recoveries):
Quarter-to-date	$	(18	)	$	(209	)	$	151		$	1,382		$	(29	)
Year-to-date		(227	)		(209	)		1,436			1,285			(97	)
Net charge-offs (recoveries) to average loans, annualized:
Quarter-to-date		(0.00	%)		(0.06	%)		0.04	%		0.36	%		(0.01	%)
Year-to-date		(0.03	%)		(0.06	%)		0.10	%		0.11	%		(0.01	%)

Nonperforming loans/total loans		1.58	%		1.91	%		1.97	%		2.00	%		1.07	%
Allowance for credit losses/nonperforming loans		89.15	%		75.81	%		74.86	%		74.89	%		136.55	%
Nonperforming assets/total assets		1.30	%		1.56	%		1.62	%		1.62	%		0.87	%

(1) Nonperforming assets consist of nonperforming loans.

MIDDLEFIELD BANC CORP.
GAAP to Non-GAAP Reconciliations

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity	For the Three Months Ended
(Dollar amounts in thousands, unaudited)	June 30,		March 31,		December 31,		September 30,		June 30,
	2025		2025		2024		2024		2024

Stockholders’ equity	$	216,052	$	213,793	$	210,562	$	210,705	$	206,788
Less goodwill and other intangibles		41,468		41,718		41,967		42,225		42,482
Tangible common equity	$	174,584	$	172,075	$	168,595	$	168,480	$	164,306

Shares outstanding		8,081,193		8,081,193		8,073,708		8,071,032		8,067,144
Tangible book value per share	$	21.60	$	21.29	$	20.88	$	20.87	$	20.37

Reconciliation of Average Equity to Return on Average Tangible Common Equity	For the Three Months Ended															For the Six Months Ended

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

Average stockholders’ equity	$	214,144		$	212,465		$	209,864		$	209,096		$	205,379		$	213,235		$	205,330
Less average goodwill and other intangibles		41,589			41,839			42,092			42,350			42,607			41,714			42,609
Average tangible common equity	$	172,555		$	170,626		$	167,772		$	166,746		$	162,772		$	171,521		$	162,721

Net income	$	6,157		$	4,830		$	4,848		$	2,340		$	4,164		$	10,987		$	8,331
Return on average tangible common equity (annualized)		14.31	%		11.48	%		11.50	%		5.58	%		10.29	%		12.92	%		10.30	%

Reconciliation of Pre-Tax Pre-Provision Income (PTPP)	For the Three Months Ended												For the Six Months Ended

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

Net income	$	6,157		$	4,830	$	4,848		$	2,340	$	4,164	$	10,987		$	8,331
Add income taxes		1,213			924		995			371		690		2,137			1,459
Add provision for (recovery of) credit losses		(506	)		95		(177	)		2,234		87		(411	)		(49	)
PTPP	$	6,864		$	5,849	$	5,666		$	4,945	$	4,941	$	12,713		$	9,741

MIDDLEFIELD BANC CORP.
Average Balance Sheets
(Dollar amounts in thousands, unaudited)

	For the Three Months Ended
	June 30,							June 30,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,576,050	$	25,122		6.40	%	$	1,503,440	$	23,422		6.27	%
Investment securities (1) (2)		191,619		1,486		3.64	%		191,752		1,471		3.62	%
Interest-earning deposits with other banks (3)		61,012		628		4.13	%		61,891		706		4.59	%
Total interest-earning assets		1,828,681		27,236		6.03	%		1,757,083		25,599		5.93	%
Noninterest-earning assets		79,414							86,431
Total assets	$	1,908,095						$	1,843,514
Interest-bearing liabilities:
Interest-bearing demand deposits	$	217,859	$	1,353		2.49	%	$	209,965	$	1,009		1.93	%
Money market deposits		489,525		4,313		3.53	%		337,937		3,320		3.95	%
Savings deposits		188,999		404		0.86	%		192,577		305		0.64	%
Certificates of deposit		297,727		2,719		3.66	%		333,542		3,789		4.57	%
Short-term borrowings		77,666		870		4.49	%		138,656		1,920		5.57	%
Other borrowings		11,588		140		4.85	%		11,791		173		5.90	%
Total interest-bearing liabilities		1,283,364		9,799		3.06	%		1,224,468		10,516		3.45	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		397,493							396,626
Other liabilities		13,094							17,042
Stockholders’ equity		214,144							205,379
Total liabilities and stockholders’ equity	$	1,908,095						$	1,843,514
Net interest income			$	17,437						$	15,083
Interest rate spread (4)						2.97	%						2.48	%
Net interest margin (5)						3.88	%						3.52	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.49	%						143.50	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $266 and $289 for the three months ended June 30, 2025 and 2024, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Three Months Ended
	June 30,							March 31,
	2025							2025
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,576,050	$	25,122		6.40	%	$	1,537,337	$	23,387		6.17	%
Investment securities (1) (2)		191,619		1,486		3.64	%		191,996		1,490		3.69	%
Interest-earning deposits with other banks (3)		61,012		628		4.13	%		67,661		596		3.57	%
Total interest-earning assets		1,828,681		27,236		6.03	%		1,796,994		25,473		5.81	%
Noninterest-earning assets		79,414							84,542
Total assets	$	1,908,095						$	1,881,536
Interest-bearing liabilities:
Interest-bearing demand deposits	$	217,859	$	1,353		2.49	%	$	220,192	$	1,154		2.13	%
Money market deposits		489,525		4,313		3.53	%		458,446		3,816		3.38	%
Savings deposits		188,999		404		0.86	%		192,931		388		0.82	%
Certificates of deposit		297,727		2,719		3.66	%		261,006		2,527		3.93	%
Short-term borrowings		77,666		870		4.49	%		120,238		1,347		4.54	%
Other borrowings		11,588		140		4.85	%		11,639		143		4.98	%
Total interest-bearing liabilities		1,283,364		9,799		3.06	%		1,264,452		9,375		3.01	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		397,493							390,354
Other liabilities		13,094							14,265
Stockholders’ equity		214,144							212,465
Total liabilities and stockholders’ equity	$	1,908,095						$	1,881,536
Net interest income			$	17,437						$	16,098
Interest rate spread (4)						2.97	%						2.80	%
Net interest margin (5)						3.88	%						3.69	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.49	%						142.12	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $266 and $272 for the three months ended June 30, 2025 and March 31, 2025, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.

	For the Six Months Ended
	June 30,							June 30,
	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost
Interest-earning assets:
Loans receivable ⁽¹⁾	$	1,556,693	$	48,509		6.29	%	$	1,489,992	$	45,817		6.19	%
Investment securities (1) (2)		191,807		2,976		3.67	%		191,801		2,910		3.59	%
Interest-earning deposits with other banks (3)		64,336		1,224		3.84	%		63,015		1,484		4.74	%
Total interest-earning assets		1,812,836		52,709		5.92	%		1,744,808		50,211		5.85	%
Noninterest-earning assets		81,979							88,291
Total assets	$	1,894,815						$	1,833,099
Interest-bearing liabilities:
Interest-bearing demand deposits	$	219,026	$	2,506		2.31	%	$	210,487	$	1,986		1.90	%
Money market deposits		473,985		8,130		3.46	%		318,208		6,147		3.88	%
Savings deposits		190,965		792		0.84	%		196,828		594		0.61	%
Certificates of deposit		279,366		5,246		3.79	%		333,706		7,162		4.32	%
Short-term borrowings		98,952		2,217		4.52	%		141,507		3,913		5.56	%
Other borrowings		11,614		283		4.91	%		11,815		357		6.08	%
Total interest-bearing liabilities		1,273,908		19,174		3.04	%		1,212,551		20,159		3.34	%
Noninterest-bearing liabilities:
Noninterest-bearing demand deposits		393,923							398,417
Other liabilities		13,749							16,801
Stockholders’ equity		213,235							205,330
Total liabilities and stockholders’ equity	$	1,894,815						$	1,833,099
Net interest income			$	33,535						$	30,052
Interest rate spread (4)						2.88	%						2.51	%
Net interest margin (5)						3.79	%						3.53	%
Ratio of average interest-earning assets to average interest-bearing liabilities						142.31	%						143.90	%

⁽¹⁾ Tax-equivalent adjustments to calculate the yield on tax-exempt securities and loans were $538 and $570 for the six months ended June 30, 2025 and June 30, 2024, respectively.

⁽²⁾ Yield is calculated on the basis of amortized cost.

⁽³⁾ Includes dividends received on restricted stock.

⁽⁴⁾ Interest rate spread represents the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities.

⁽⁵⁾ Net interest margin represents net interest income as a percentage of average interest-earning assets.


Company Contact:	Investor and Media Contact:
Ronald L. Zimmerly, Jr. President and Chief Executive Officer Middlefield Banc Corp. (419) 673-1217 rzimmerly@middlefieldbank.com	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

The MIL Network –

July 23, 2025

MIL-OSI: CNB Financial Corporation Reports Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

CLEARFIELD, Pa., July 22, 2025 (GLOBE NEWSWIRE) —

CNB Financial Corporation (“Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the three and six months ended June 30, 2025.

Key Financial Trends

Earnings – Net income available to common shareholders (“earnings”) was $12.9 million, or $0.61 per diluted share, and $10.4 million, or $0.50 per diluted share, for the three months ended June 30, 2025 and March 31, 2025, respectively.
- Excluding after-tax merger costs, earnings were $13.2 million, or $0.63 per diluted share, for the three months ended June 30, 2025, reflecting an increase of $1.3 million, or 11.31%, and $0.06 per diluted share, or 10.53%, compared to earnings of $11.9 million, or $0.57 per diluted share, for the three months ended March 31, 2025.¹
Loans – At June 30, 2025, loans totaled $4.7 billion, excluding the balances of syndicated loans, representing a quarterly increase of $113.7 million, or 2.50% (10.04% annualized), compared to March 31, 2025.
Deposits – At June 30, 2025, total deposits were $5.5 billion, reflecting a quarterly increase of $7.0 million, or 0.13% (0.51% annualized), compared to March 31, 2025.
- The second quarter of 2025 included the exits/reductions of higher cost municipal deposits totaling approximately $77.7 million. Excluding the impact of these exits/reductions, total deposits increased approximately $84.7 million or 1.55% (6.22% annualized), compared to the first quarter of 2025.¹
Net Interest Margin – Net interest margin was 3.60% for the three months ended June 30, 2025, compared to 3.38% for the three months ended March 31, 2025. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.59% and 3.37%, for the three months ended June 30, 2025 and March 31, 2025, respectively.¹
Credit Quality – Total nonperforming assets were approximately $30.4 million, or 0.48% of total assets, as of June 30, 2025, compared to $56.1 million, or 0.89% of total assets, as of March 31, 2025. The $25.7 million decrease in nonperforming assets for the three months ended June 30, 2025, was primarily due to the resolution of approximately $24.1 million in non-performing assets, as discussed in more detail below.
- Net loan charge-offs were $3.3 million, or 0.28% (annualized) of average total loans and loans held for sale, for the three months ended June 30 2025, compared to $1.4 million, or 0.13% (annualized) of average total loans and loans held for sale, during the three months ended March 31, 2025.
Capital – As of June 30, 2025, the Corporation’s ratio of common shareholders’ equity to total assets was 9.17% compared to 9.00% at March 31, 2025. As of June 30, 2025 and March 31, 2025, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.53% and 8.36%, respectively.¹

Executive Summary

Net income available to common shareholders (“earnings”) was $12.9 million, or $0.61 per diluted share, and $10.4 million, or $0.50 per diluted share, for the three months ended June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, earnings were $13.2 million, or $0.63 per diluted share, for the three months ended June 30, 2025, reflecting an increase of $1.3 million, or 11.31%, and $0.06 per diluted share, or 10.53%, compared to earnings of $11.9 million, or $0.57 per diluted share, for the three months ended March 31, 2025.¹ The quarterly increase was a result of an increase in net interest income and non-interest income, and a decrease in non-interest expense, partially offset by an increase in the provision for credit losses, as discussed in more detail below. Excluding after-tax merger costs in the second quarter 2025, earnings and diluted earnings per share when compared to earnings of $11.9 million, or $0.56 per diluted share, in the quarter ended June 30, 2024, increased $1.4 million, or 11.41%, and $0.07 per diluted share, or 12.50%, due to an increase in net interest income and non-interest income, partially offset by increases in non-interest expense and the provision for credit losses.¹
Earnings were $23.3 million, or $1.10 per diluted share, for the six months ended June 30, 2025. Excluding after-tax merger costs, earnings were $25.1 million, or $1.19 per diluted share, for the six months ended June 30, 2025, reflecting an increase of $1.7 million, or 7.37%, and $0.08 per diluted share, or 7.21%, compared to earnings of $23.4 million, or $1.11 per diluted share, for the six months ended June 30, 2024.¹ The year-to-date increase was a result of an increase in net interest income, partially offset by a decrease in non-interest income, and increases in non-interest expense and the provision for credit losses, as discussed in more detail below.
At June 30, 2025, loans totaled $4.7 billion, excluding the balances of syndicated loans. This total of $4.7 billion in loans represented a quarterly increase of $113.7 million, or 2.50% (10.04% annualized), compared to March 31, 2025, and a year-over-year increase of $228.7 million, or 5.17%, compared to June 30, 2024. The increase in loans for the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025, and the year-over-year increase in loans as of June 30, 2025, compared to June 30, 2024, was primarily driven by growth in the ERIEBANK, Ridge View Bank, BankOnBuffalo, and the legacy CNB markets, as well as CNB Bank’s Private Banking division.
- At June 30, 2025, the syndicated loan portfolio totaled $78.9 million, or 1.67% of total loans, compared to $69.2 million, or 1.50% of total loans, at March 31, 2025 and $53.9 million, or 1.20% of total loans, at June 30, 2024. The increase in syndicated lending balances of $9.7 million compared to March 31, 2025 and $25.0 million compared to June 30, 2024 reflects the Corporation’s continued focus on evaluating the level and composition of its syndicated loan portfolio to ensure it continues to provide strong credit quality, profitable use of excess liquidity, and complement the Corporation’s loan growth from its in-market customer relationships.
At June 30, 2025, total deposits were $5.5 billion, reflecting a quarterly increase of $7.0 million, or 0.13% (0.51% annualized), compared to March 31, 2025, and a year-over-year increase of $356.2 million, or 6.97%, compared to total deposits measured as of June 30, 2024. The growth in total deposits in the second quarter of 2025 includes the exit/reductions of higher cost municipal deposits totaling approximately $77.7 million. Excluding the impact of these exit/reductions, total deposits increased approximately $84.7 million or 1.55% (6.22% annualized).¹ The increase in deposit balances for the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025, and the year-over-year increase in deposit balances as of June 30, 2025, was driven primarily by higher Treasury Management sourced business and municipal deposits, coupled with growth in retail accounts, including time deposits. Additional deposit and liquidity profile details were as follows:
- At June 30, 2025, the total estimated uninsured deposits for CNB Bank were approximately $1.6 billion, or approximately 28.62% of total CNB Bank deposits. However, when excluding $103.5 million of affiliate company deposits and $509.0 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $982.0 million, or approximately 17.63% of total CNB Bank deposits as of June 30, 2025.
  - The level of adjusted uninsured deposits at June 30, 2025 remained relatively unchanged, compared to the level at March 31, 2025, when the total estimated uninsured deposits for CNB Bank were approximately $1.6 billion, or approximately 27.94% of total CNB Bank deposits. Excluding $101.9 million of affiliate company deposits and $481.2 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits were approximately $971.1 million, or approximately 17.46% of total CNB Bank deposits as of March 31, 2025.
- At June 30, 2025, the average deposit balance per account for CNB Bank was approximately $34 thousand, which has remained stable at this level for an extended period.
- At June 30, 2025, the Corporation had $332.2 million of cash equivalents held in CNB Bank’s interest-bearing deposit account at the Federal Reserve. These excess funds, when combined with collective contingent liquidity resources of $4.6 billion including (i) available borrowing capacity from the Federal Home Bank of Pittsburgh (“FHLB”) and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, resulted in the total available liquidity sources for the Corporation as of June 30, 2025 to be approximately 5.1 times the estimated amount of adjusted uninsured deposit balances discussed above.
At June 30, 2025, March 31, 2025, and June 30, 2024, the Corporation had no outstanding short-term borrowings from the FHLB or the Federal Reserve’s Discount Window.
At June 30, 2025, the Corporation’s pre-tax net unrealized losses on the combined portfolios of available-for-sale and held-to-maturity securities totaled $55.6 million, or 8.73% of total shareholders’ equity, compared to $61.7 million, or 9.88% of total shareholders’ equity, at March 31, 2025, and $84.1 million, or 14.33% of total shareholders’ equity, at June 30, 2024. The change in unrealized losses during the first second quarter 2025 was primarily due to changes in the yield curve compared to the first quarter of 2024 and second quarter of 2024, coupled with the Corporation’s scheduled bond maturities, which were all realized at par. Importantly, all regulatory capital ratios for the Corporation would still exceed regulatory “well-capitalized” levels as of June 30, 2025, March 31, 2025, and June 30, 2024 if the net unrealized losses at the respective dates were fully recognized. Additionally, the Corporation continued to maintain excess liquidity at its holding company totaling approximately $102.2 million of liquid funds at June 30, 2025, which more than covers the $55.6 million in combined available-for-sale and held-to-maturity unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to CNB Bank, if necessary.
Total nonperforming assets were approximately $30.4 million, or 0.48% of total assets, as of June 30, 2025, compared to $56.1 million, or 0.89% of total assets, as of March 31, 2025, and $36.5 million, or 0.62% of total assets, as of June 30, 2024. The $25.7 million decrease in nonperforming assets for the three months ended June 30, 2025, compared to the three months ended March 31, 2025 was primarily due to paydowns to workout-related efforts on two larger nonaccrual loan relationships, and resulting charge-offs on these workouts and other smaller problem loans. The most significant charge-offs were $1.5 million for an owner-occupied commercial real estate relationship (balance of approximately $3.8 million with a specific reserve balance of $1.4 million) and a $1.1 million charge-off of a multifamily commercial real estate loan (balance of approximately $20.3 million with a specific reserve balance of $885 thousand). The $6.2 million decrease in nonperforming assets at June 30, 2025 compared to June 30, 2024 was due to charge-off of the owner-occupied commercial real estate relationship previously discussed, coupled with paydowns to nonaccrual loans. For the three months ended June 30, 2025, net loan charge-offs were $3.3 million, or 0.28% (annualized) of average total loans and loans held for sale, compared to $1.4 million, or 0.13% (annualized) of average total loans and loans held for sale, during the three months ended March 31, 2025, and $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024.
Pre-provision net revenue (“PPNR”), a non-GAAP measure, was $21.6 million for the three months ended June 30, 2025 and $15.9 million for the three months ended March 31, 2025.¹ Excluding merger costs, PPNR was $21.9 million for the three months ended June 30, 2025, compared to $17.4 million and $18.6 million for the three months ended March 31, 2025 and June 30, 2024, respectively.¹ The second quarter 2025 PPNR, excluding merger costs, when compared to the first quarter of 2025, reflected increases in net interest income and non-interest income and a decrease in non-interest expense. The increase in PPNR for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was primarily attributable to higher net interest income, partially offset by an increase in non-interest expenses. PPNR was $37.5 million for the six months ended June 30, 2025.¹ Excluding merger costs, PPNR was $39.4 million for the six months ended June 30, 2025, compared to $35.3 million for the six months ended June 30, 2024.¹ The year-to-date 2025 PPNR, excluding merger costs, when compared to the year-to-date 2024 PPNR, reflected increases in net interest income, partially offset by a decrease in non-interest income and an increase in non-interest expense.

¹ This release contains references to certain financial measures that are not defined by U.S. Generally Accepted Accounting Principles (“GAAP”). Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. A reconciliation of these non-GAAP financial measures is provided in the “Reconciliation of Non-GAAP Financial Measures” section.

Michael Peduzzi, President and CEO of both the Corporation and CNB Bank, stated, “Favorably, our second quarter earnings and growth reflected the positive momentum of continued commercial loan growth and demand that we saw at the end of the first quarter with both existing relationships and new prospects. This momentum included realized deposit and relationship growth based in our Treasury Management activities, as evidenced by favorable growth in our noninterest-bearing deposits. These volume increases in our core net interest income components were complemented by increases in our average loan yield and continued decreases in our cost of interest-bearing funds, resulting in a favorable 22 basis point increase in our taxable-equivalent net interest margin compared to the first quarter. We continue to see both a sound loan pipeline and opportunities for further cost-of-fund interest reductions as we enter the third quarter. Importantly, as we release these second quarter earnings, we are ready to close and begin the integration of our acquisition of ESSA Bancorp, Inc. and its subsidiary, ESSA Bank and Trust (collectively, “ESSA”), with legal merger close scheduled to occur at the end of day on July 23, 2025. The addition of this wonderful franchise and related employee team will add significantly to CNB’s earning-asset base and market footprint, allowing us to deliver great banking and wealth management experiences for clients in the Northeastern Pennsylvania markets served by ESSA. In addition to the increased net interest income earning and growth capabilities we expect from our business combination, we look to continue to focus on tightly managing the Corporation’s core overhead, while realizing economies-of-scale cost efficiencies from the ESSA acquisition, as we look to realize both increased positive operating leverage and further accretion to our net interest margin and overall earnings. We are honored to welcome the clients, employees, and investors from ESSA to our CNB family.”

Other Balance Sheet Highlights

Book value per common share was $27.44 and $27.01 at June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, book value per common share was $27.53, reflecting an increase of $0.45, or 6.67% (annualized), from $27.08 at March 31, 2025 and a year-over-year increase of $2.34, or 9.29%, from $25.19 at June 30, 2024.¹ Tangible book value per common share, a non-GAAP measure, was $25.35 and $24.91 as of June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, tangible book value per common share, a non-GAAP measure, was $25.44, reflecting an increase of $0.46, or 7.39% (annualized) from $24.98 as of March 31, 2025 and a year-over-year increase of $2.35, or 10.18%, from $23.09 as of June 30, 2024.¹ The increases in book value per common share and tangible book value per common share, excluding after-tax merger costs, from March 31, 2025 to June 30, 2025 were primarily due to a $9.1 million increase in retained earnings, coupled with a $3.0 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the second quarter of 2025. The increases in book value per common share and tangible book value per common share, excluding after-tax merger costs, from June 30, 2024 to June 30, 2025 were primarily due to a $35.0 million increase in retained earnings over the twelve months ended June 30, 2025 coupled with a $13.9 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months.

Loan Portfolio Profile

As part of its lending policy and risk management activities, the Corporation tracks lending exposure by industry classification and type to determine potential risks associated with industry concentrations, and to identify any concentration risk issues that could lead to additional credit loss exposure. An important and recurring part of this process involves the Corporation’s continued measurement and evaluation of its exposure to the office, hospitality, and multifamily industries within its commercial real estate portfolio. Even given the Corporation’s historically sound underwriting protocols and high credit quality standards for borrowers in the commercial real estate industry segments, the Corporation monitors numerous relevant sensitivity elements, including occupancy, loan-to-value, absorption and cap rates, debt service coverage and covenant compliance, and developer/lessor financial strength both in the project and globally. At June 30, 2025, the Corporation had the following key metrics related to its office, hospitality and multifamily portfolios:
- Commercial office loans:
  - There were 113 outstanding loans, totaling $111.1 million, or 2.35% of total Corporation loans outstanding;
  - There were no nonaccrual commercial office loans;
  - There were two past-due commercial office loans that totaled $209 thousand, or 0.19% of total commercial office loans outstanding; and
  - The average outstanding balance per commercial office loan was $983 thousand.
- Commercial hospitality loans:
  - There were 156 outstanding loans, totaling $321.2 million, or 6.79% of total Corporation loans outstanding;
  - There were no nonaccrual commercial hospitality loans;
  - There were no past-due commercial hospitality loans; and
  - The average outstanding balance per commercial hospitality loan was $2.1 million.
- Commercial multifamily loans:
  - There were 223 outstanding loans, totaling $405.4 million, or 8.57% of total Corporation loans outstanding;
  - There was one nonaccrual and past-due commercial multifamily loan that totaled $199 thousand, or 0.05% of total multifamily loans outstanding; and
  - The average outstanding balance per commercial multifamily loan was $1.8 million.

The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be high volatility commercial real estate (“HVCRE”) credits.

Performance Ratios

Annualized return on average equity was 8.83% and 7.52% for the three months ended June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, annualized return on average equity was 9.06% for the three months ended June 30, 2025, compared to 8.49% and 8.94% for the three months ended March 31, 2025 and June 30, 2024, respectively.¹ Annualized return on average equity was 8.18% for the six months ended June 30, 2025. Excluding after-tax merger costs, annualized return on average equity was 8.78% for the six months ended June 30, 2025, compared to 8.86% for the six months ended June 30, 2024.¹
Annualized return on average tangible common equity, a non-GAAP measure, was 9.71% and 8.15% for the three months ended June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, annualized return on average tangible common equity was 9.98% for the three months ended June 30, 2025, compared to 9.32% and 9.93% for the three months ended March 31, 2025 and June 30, 2024, respectively.¹ Annualized return on average tangible common equity was 8.95% for the six months ended June 30, 2025. Excluding after-tax merger costs, annualized return on average tangible common equity was 9.66% for the six months ended June 30, 2025, compared to 9.85% for the six months ended June 30, 2024.¹
The Corporation’s efficiency ratio was 64.73% and 72.07% for the three months ended June 30, 2025 and March 31, 2025, respectively, and 64.08% and 71.28%, respectively, on a fully tax-equivalent basis, a non-GAAP measure.¹ Excluding merger costs, the efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 63.50%, compared to 68.62% and 65.20% for the three months ended March 31, 2025 and June 30, 2024, respectively.¹ The quarter-over-quarter decrease was primarily driven by higher net interest income and non-interest income and decreased non-interest expense, as further discussed below. The year-over-year decrease was primarily driven by an increase in net interest income, partially offset by an increase in non-interest expense. The Corporation’s efficiency ratio was 68.27% for the six months ended June 30, 2025, and 67.55% on a fully tax-equivalent basis, a non-GAAP measure.¹ Excluding merger costs, the efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 65.97%, compared to 66.74% for the six months ended June 30, 2024.¹ The year-over-year decrease was primarily driven by higher net interest income, partially offset by higher non-interest expense.

Revenue

Total revenue (net interest income plus non-interest income) was $61.2 million for the three months ended June 30, 2025, an increase when compared to $56.9 million and $54.6 million for the three months ended March 31, 2025 and June 30, 2024, respectively.
- Net interest income was $52.2 million for the three months ended June 30, 2025, compared to $48.4 million and $45.7 million for the three months ended March 31, 2025 and June 30, 2024, respectively. When comparing the second quarter of 2025 to the first quarter of 2025, the increase in net interest income of $3.8 million, or 7.78% (31.19% annualized), was primarily due to the change in the earning asset mix from interest-bearing deposits to loans, coupled with changes in the yield curve.
- Net interest margin was 3.60%, 3.38%, and 3.36% for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.59%, 3.37% and 3.34% for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.¹
  - The yield on earning assets of 5.89% for the three months ended June 30, 2025 increased 16 basis points from March 31, 2025 and was unchanged compared to June 30, 2024. The increase in yield in the second quarter of 2025 compared to quarter ended March 31, 2025 was attributable to quarter-over-quarter increases in the yield on both the loan and securities portfolios.
  - The cost of interest-bearing liabilities was 2.88% for the three months ended June 30, 2025, representing a decrease of 5 basis points from March 31, 2025 and a 29 basis points from June 30, 2024. The decrease in the cost of interest-bearing liabilities is primarily the result of the Corporation’s targeted interest-bearing deposit rate decreases in response to the Federal Reserve rate decreases since mid-September 2024.
Total revenue was $118.1 million for the six months ended June 30, 2025 compared to $108.8 million for the six months ended June 30, 2024.
- Net interest income was $100.6 million for the six months ended June 30, 2025 compared to $90.9 million for the six months ended June 30, 2024. When comparing the six months ended June 30, 2025 to the six months ended June 30, 2024, the increase in net interest income of $9.7 million, or 10.65% (21.37% annualized), was due to investment and loan growth.
- Net interest margin was 3.49% and 3.38% for the six months ended June 30, 2025 and June 30, 2024, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.48% and 3.36% for the six months ended June 30, 2025 and June 30, 2024, respectively.¹
  - The yield on earning assets of 5.81% for the six months ended June 30, 2025 decreased 4 basis points from June 30, 2024. The decrease in yield compared to June 30, 2024 was attributable to lower loan yields on variable and floating-rate loans following the three Federal Reserve rate decreases totaling 100 basis points since mid-September 2024.
  - The cost of interest-bearing liabilities of 2.90% for the six months ended June 30, 2025 decreased 20 basis points from June 30, 2024, primarily the result of the Corporation’s targeted interest-bearing deposit rate decreases in response to the Federal Reserve rate decreases since mid-September 2024.
Total non-interest income was $9.0 million for the three months ended June 30, 2025 compared to $8.5 million and $8.9 million for the three months ended March 31, 2025 and June 30, 2024, respectively. The quarter-over-quarter increase was primarily attributable to an increase in wealth and asset management fees, bank owned life insurance revenue (death benefit), and an improvement in unrealized gains on equity securities, partially offset by lower pass-through income from small business investment companies (“SBICs”). The increase year-over-year in non-interest income was primarily due to increases in bank owned life insurance (death benefit) and an improvement in unrealized gains on equity securities, partially offset by lower other charges and fees, coupled with lower pass-through income from SBICs.
Total non-interest income was $17.5 million for the six months ended June 30, 2025 compared to $17.8 million for the six months ended June 30, 2024. This decrease was primarily due to lower other charges and fees, coupled with lower pass-through income from SBICs, partially offset by an increase in unrealized gains on equity securities, bank owned life insurance revenue (death benefit) and card processing and interchange income.

Non-Interest Expense

For the three months ended June 30, 2025 and March 31, 2025 total non-interest expense was $39.6 million and $41.0 million, respectively. Excluding merger costs, total non-interest expense for the three months ended June 30, 2025 was $39.3 million, compared to $39.5 million and $36.0 million for the three months ended March 31, 2025 and June 30, 2024, respectively.¹ Excluding merger costs, the decrease of $249 thousand, or 0.63%, from the three months ended March 31, 2025, was primarily driven by a decrease in salaries and benefits, due to a decrease in staffing levels, coupled with retirement plan contribution accruals. The Corporation tightly managed its core back-office staffing levels in anticipation of the impact of staffing additions from the planned ESSA acquisition. Excluding merger costs, the $3.3 million increase in non-interest expense compared to the three months ended June 30, 2024 was primarily driven by higher salaries and benefits, reflecting increased incentive compensation accruals and retirement plan contribution accruals. Additionally, occupancy expense increased, primarily due to higher rent expense related to three additional full-service office locations, coupled with an increase in card processing and interchange expenses and other non-interest expenses (timing of business development expenses). The increase in card processing and interchange expenses related to the changes made by the Corporation to its cardholder rewards program during the second quarter 2024.
For the six months ended June 30, 2025 total non-interest expense was $80.7 million. Excluding merger costs, total non-interest expense was $78.8 million, compared to $73.4 million for the six months ended June 30, 2024. Excluding merger costs, the increase of $5.4 million, or 7.30%, from the six months ended June 30, 2024, was primarily driven by higher salaries and benefits, reflecting increased base salaries for inflationary annual increases, higher incentive compensation accruals, and increased retirement plan contribution accruals. Additionally, occupancy expense increased, primarily due to higher rent expense related to three additional full-service office locations, coupled with an increase in card processing and interchange expenses and other non-interest expenses (timing of business development expenses).

Income Taxes

Income tax expense for the three months ended June 30, 2025 was $3.3 million, representing a 19.10% effective tax rate, compared to $2.9 million, representing a 19.96% effective tax rate, for the three months ended March 31, 2025, and $3.0 million, representing an 19.03% effective tax rate, for the three months ended June 30, 2024. The effective tax rate for the first and second quarters of 2025 was impacted by non-deductible merger costs of $1.3 million and $357 thousand, respectively. Income tax expense for the six months ended June 30, 2025 was $6.2 million, representing a 19.49% effective tax rate, compared to $5.9 million, representing a 18.70% effective tax rate, for the six months ended June 30, 2025.

Asset Quality

Total nonperforming assets were approximately $30.4 million, or 0.48% of total assets, as of June 30, 2025, compared to $56.1 million, or 0.89% of total assets, as of March 31, 2025, and $36.5 million, or 0.62% of total assets, as of June 30, 2024, as discussed in more detail above.
The allowance for credit losses measured as a percentage of total loans was 1.02% as of June 30, 2025, compared to 1.03% as of as of March 31, 2025, and 1.02% as of June 30, 2024. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 169.52% as of June 30, 2025, compared to 87.57% and 130.88% as of March 31, 2025 and June 30, 2024, respectively. The change in the allowance for credit losses as a percentage of nonaccrual loans was primarily attributable to the levels of nonperforming assets, as discussed in more detail above.
The provision for credit losses was $4.3 million for the three months ended June 30, 2025, compared to $1.6 million and $2.6 million for the three months ended March 31, 2025 and June 30, 2024, respectively. The $2.8 million and $1.7 million increases in the provision expense for the second quarter of 2025 compared to the first quarter of 2025 and second quarter 2024, respectively, were primarily a result of increased net loan charge-offs, as discussed in more detail above, coupled with higher loan portfolio growth. The provision for credit losses was $5.9 million for the six months ended June 30, 2025, compared to $3.9 million for the six months ended June 30, 2024. The $2.0 million increase in the provision expense for the first six months of 2025 compared to the first six months of 2024 was primarily a result of higher loan portfolio growth for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, coupled with increased net loan charge-offs, as discussed above.
As discussed in more detail above, for the three months ended June 30, 2025, net loan charge-offs were $3.3 million, or 0.28% (annualized) of average total loans and loans held for sale, compared to $1.4 million, or 0.13% (annualized) of average total loans and loans held for sale, during the three months ended March 31, 2025, and $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024.
For the six months ended June 30, 2025, net loan charge-offs were $4.7 million, or 0.21% (annualized) of average total loans and loans held for sale, compared to $4.1 million, or 0.19% (annualized) of average total loans and loans held for sale, during the six months ended June 30, 2024.

Capital

As of June 30, 2025, the Corporation’s total shareholders’ equity was $637.3 million, representing an increase of $12.8 million, or 2.05% (8.20% annualized), from March 31, 2025, and an increase of $50.6 million, or 8.62%, from June 30, 2024. The changes resulted from an increase in the Corporation’s retained earnings (net income, partially offset by the common and preferred stock dividends paid) and a decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio.
Regulatory capital ratios for the Corporation continue to exceed regulatory “well-capitalized” levels as of June 30, 2025, consistent with prior periods.
As of June 30, 2025, the Corporation’s ratio of common shareholders’ equity to total assets was 9.17% compared to 9.00% at March 31, 2025 and 8.99% at June 30, 2024. As of June 30, 2025 and March 31, 2025, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.53% and 8.36%, respectively. Excluding merger costs, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, as of June 30, 2025 was 8.56% compared to 8.38% at March 31, 2025 and 8.30% at June 30, 2024.¹ The increase in the June 30, 2025 ratio of tangible common equity to tangible assets compared to March 31, 2025 and June 30, 2024 was primarily the result of a decrease in accumulated other comprehensive loss, coupled with an increase in retained earnings, as discussed above.¹

Recent Events

On January 10, 2025, the Corporation announced that the Corporation and CNB Bank entered into a definitive merger agreement (the “Merger Agreement”) with ESSA Bancorp, Inc. (“ESSA”) and ESSA Bank and Trust in an all-stock transaction. Under the terms of the Merger Agreement, each outstanding share of ESSA common stock will be converted into the right to receive 0.8547 shares of the Corporation’s common stock. On June 30, 2025, the Corporation and ESSA announced they have received the requisite bank regulatory approvals and waivers from the Federal Deposit Insurance Corporation, the Pennsylvania Department of Banking and Securities and the Federal Reserve Bank of Philadelphia necessary for CNB to complete its acquisition of ESSA and ESSA Bank & Trust. The transaction is currently expected to close July 23, 2025, subject to customary closing conditions.

About CNB Financial Corporation

CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.3 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, one loan production office, one drive-up office, one mobile office, and 55 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.

Forward-Looking Statements

This press release includes 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, with respect to the Corporation’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Corporation’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” The Corporation’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; (ii) changes in interest rates; (iii) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (iv) effectiveness of our data security controls in the face of cyber attacks and any reputational risks following a cybersecurity incident; (v) changes in general business, industry or economic conditions or competition; (vi) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (vii) adverse economic effects from international trade disputes, including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation, or similar events impacting economic activity; (viii) the possibility that CNB and ESSA may be unable to achieve expected synergies and operating efficiencies in the merger within the executed timeframes or at all or to successfully integrate ESSA operations and those of CNB; (ix) higher than expected costs or other difficulties related to integration of combined or merged businesses; (x) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (xi) changes in the quality or composition of our loan and investment portfolios; (xii) adequacy of loan loss reserves; (xiii) increased competition; (xiv) loss of certain key officers; (xv) deposit attrition; (xvi) rapidly changing technology; (xvii) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xviii) changes in the cost of funds, demand for loan products or demand for financial services; and (xix) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on the Corporation’s financial position and results of operations. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in the Corporation’s annual and quarterly reports filed with the Securities and Exchange Commission.

The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. Factors or events that could cause the Corporation’s actual results to differ may emerge from time to time, and it is not possible for the Corporation to predict all of them. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements included in this press release 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, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Income Statement
Interest and fees on loans	$	75,408		$	72,379		$	72,142		$	147,787		$	143,655
Interest and dividends on securities and cash and cash equivalents		10,363			10,000			8,510			20,363			14,902
Interest expense		(33,574	)		(33,948	)		(34,935	)		(67,522	)		(67,618	)
Net interest income		52,197			48,431			45,717			100,628			90,939
Provision for credit losses		4,338			1,556			2,591			5,894			3,911
Net interest income after provision for credit losses		47,859			46,875			43,126			94,734			87,028
Non-interest income
Wealth and asset management fees		2,109			1,796			2,007			3,905			3,809
Service charges on deposit accounts		1,656			1,714			1,794			3,370			3,488
Other service charges and fees		427			510			712			937			1,407
Net realized gains on available-for-sale securities		—			—			—			—			—
Net realized and unrealized gains (losses) on equity securities		567			(249	)		(80	)		318			111
Mortgage banking		172			96			187			268			383
Bank owned life insurance		976			760			784			1,736			1,551
Card processing and interchange income		2,278			2,107			2,187			4,385			4,203
Other non-interest income		823			1,773			1,274			2,596			2,868
Total non-interest income		9,008			8,507			8,865			17,515			17,820
Non-interest expenses
Salaries and benefits		19,348			20,564			17,676			39,912			36,463
Net occupancy expense of premises		4,032			4,038			3,580			8,070			7,220
Technology expense		5,462			5,378			5,573			10,840			10,645
Advertising expense		556			514			553			1,070			1,238
State and local taxes		1,301			1,292			1,237			2,593			2,380
Legal, professional, and examination fees		997			849			1,119			1,846			2,291
FDIC insurance premiums		937			985			1,018			1,922			2,008
Card processing and interchange expenses		1,253			1,160			878			2,413			2,057
Merger costs		357			1,529			—			1,886			—
Other non-interest expense		5,374			4,729			4,355			10,103			9,111
Total non-interest expenses		39,617			41,038			35,989			80,655			73,413
Income before income taxes		17,250			14,344			16,002			31,594			31,435
Income tax expense		3,294			2,863			3,045			6,157			5,878
Net income		13,956			11,481			12,957			25,437			25,557
Preferred stock dividends		1,075			1,075			1,075			2,150			2,150
Net income available to common shareholders	$	12,881		$	10,406		$	11,882		$	23,287		$	23,407

Ending shares outstanding		21,119,894			20,980,245			20,998,117			21,119,894			20,980,245
Average diluted common shares outstanding		20,952,891			20,925,388			20,893,396			20,939,424			20,890,203
Diluted earnings per common share	$	0.61		$	0.50		$	0.56		$	1.10		$	1.11
Adjusted diluted earnings per common share, net of merger costs (non-GAAP)⁽¹⁾	$	0.63		$	0.57		$	0.56		$	1.19		$	1.11
Cash dividends per common share	$	0.180		$	0.180		$	0.175		$	0.360		$	0.350
Dividend payout ratio		30	%		36	%		31	%		33	%		32	%
Adjusted dividend payout ratio, net of merger costs (non-GAAP)⁽¹⁾		29	%		32	%		31	%		30	%		32	%

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Average Balances
Total loans and loans held for sale	$	4,668,051		$	4,591,395		$	4,441,633		$	4,629,956		$	4,435,246
Investment securities		803,082			798,427			734,087			800,722			732,710
Total earning assets		5,817,121			5,803,526			5,465,645			5,810,364			5,407,954
Total assets		6,235,036			6,220,575			5,854,978			6,227,901			5,792,485
Noninterest-bearing deposits		829,328			814,441			761,270			821,927			749,124
Interest-bearing deposits		4,558,732			4,574,700			4,321,678			4,566,673			4,275,406
Shareholders’ equity		633,848			619,409			583,221			626,739			579,991
Tangible common shareholders’ equity (non-GAAP)⁽¹⁾		532,005			517,550			481,309			524,888			478,069

Average Yields (annualized)
Total loans and loans held for sale		6.50	%		6.41	%		6.55	%		6.46	%		6.53	%
Investment securities		2.83	%		2.75	%		2.14	%		2.79	%		2.08	%
Total earning assets		5.89	%		5.73	%		5.89	%		5.81	%		5.85	%
Interest-bearing deposits		2.84	%		2.89	%		3.15	%		2.87	%		3.07	%
Interest-bearing liabilities		2.88	%		2.93	%		3.17	%		2.90	%		3.10	%

Performance Ratios (annualized)
Return on average assets		0.90	%		0.75	%		0.89	%		0.82	%		0.89	%
Adjusted return on average assets, net of merger costs (non-GAAP)⁽¹⁾		0.92	%		0.85	%		0.89	%		0.88	%		0.89	%
Return on average equity		8.83	%		7.52	%		8.94	%		8.18	%		8.86	%
Adjusted return on average equity, net of merger costs (non-GAAP)⁽¹⁾		9.06	%		8.49	%		8.94	%		8.78	%		8.86	%
Return on average tangible common equity (non-GAAP)⁽¹⁾		9.71	%		8.15	%		9.93	%		8.95	%		9.85	%
Adjusted return on average tangible common equity (non-GAAP)⁽¹⁾		9.98	%		9.32	%		9.93	%		9.66	%		9.85	%
Net interest margin, fully tax equivalent basis (non-GAAP)⁽¹⁾		3.59	%		3.37	%		3.34	%		3.48	%		3.36	%
Efficiency ratio, fully tax equivalent basis (non-GAAP)⁽¹⁾		64.08	%		71.28	%		65.20	%		67.55	%		66.74	%
Adjusted efficiency ratio, fully tax equivalent basis (non-GAAP)⁽¹⁾		63.50	%		68.62	%		65.20	%		65.97	%		66.74	%

Net Loan Charge-Offs
CNB Bank net loan charge-offs	$	2,848		$	926		$	2,348		$	3,774		$	3,226
Holiday Financial net loan charge-offs		455			513			456			968			922
Total Corporation net loan charge-offs	$	3,303		$	1,439		$	2,804		$	4,742		$	4,148
Annualized net loan charge-offs / average total loans and loans held for sale		0.28	%		0.13	%		0.25	%		0.21	%		0.19	%

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

	June 30, 2025			March 31, 2025			June 30, 2024
Ending Balance Sheet
Cash and due from banks	$	88,721		$	68,745		$	56,031
Interest-bearing deposits with Federal Reserve		332,214			447,053			271,943
Interest-bearing deposits with other financial institutions		4,476			4,359			3,171
Total cash and cash equivalents		425,411			520,157			331,145
Debt securities available-for-sale, at fair value		523,198			516,412			359,900
Debt securities held-to-maturity, at amortized cost		270,032			282,159			354,569
Equity securities		10,937			10,293			9,654
Loans held for sale		833			860			642
Loans receivable
Syndicated loans		78,936			69,189			53,938
Loans		4,654,484			4,540,820			4,425,754
Total loans receivable		4,733,420			4,610,009			4,479,692
Less: allowance for credit losses		(48,329	)		(47,357	)		(45,532	)
Net loans receivable		4,685,091			4,562,652			4,434,160
Goodwill and other intangibles		43,874			43,874			43,874
Core deposit intangible		173			190			241
Other assets		358,928			358,911			352,386
Total Assets	$	6,318,477		$	6,295,508		$	5,886,571

Noninterest-bearing demand deposits	$	855,788		$	842,398		$	762,918
Interest-bearing demand deposits		698,902			719,460			693,074
Savings		3,162,515			3,160,618			3,140,505
Certificates of deposit		749,877			737,602			514,348
Total deposits		5,467,082			5,460,078			5,110,845
Subordinated debentures		20,620			20,620			20,620
Subordinated notes, net of issuance costs		84,722			84,646			84,419
Other liabilities		108,772			105,656			83,987
Total liabilities		5,681,196			5,671,000			5,299,871
Common stock		—			—			—
Preferred stock		57,785			57,785			57,785
Additional paid in capital		218,375			220,254			218,756
Retained earnings		397,004			387,925			361,987
Treasury stock		(2,420	)		(4,944	)		(4,438	)
Accumulated other comprehensive loss		(33,463	)		(36,512	)		(47,390	)
Total shareholders’ equity		637,281			624,508			586,700
Total liabilities and shareholders’ equity	$	6,318,477		$	6,295,508		$	5,886,571

Book value per common share	$	27.44		$	27.01		$	25.19
Adjusted book value per common share (non-GAAP)⁽¹⁾	$	27.53		$	27.08		$	25.19
Tangible book value per common share (non-GAAP)⁽¹⁾	$	25.35		$	24.91		$	23.09
Adjusted tangible book value per common share (non-GAAP)⁽¹⁾	$	25.44		$	24.98		$	23.09

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

	June 30, 2025			March 31, 2025			June 30, 2024
Capital Ratios
Tangible common equity / tangible assets (non-GAAP)⁽¹⁾		8.53	%		8.36	%		8.30	%
Adjusted tangible common equity / tangible assets (non-GAAP)⁽¹⁾		8.56	%		8.38	%		8.30	%
Tier 1 leverage ratio⁽²⁾		10.42	%		10.27	%		10.56	%
Common equity tier 1 ratio⁽²⁾		11.78	%		11.85	%		11.71	%
Tier 1 risk-based ratio⁽²⁾		13.38	%		13.50	%		13.41	%
Total risk-based ratio⁽²⁾		16.14	%		16.30	%		16.20	%

Asset Quality Detail
Nonaccrual loans	$	28,509		$	54,079		$	34,788
Loans 90+ days past due and accruing		256			308			112
Total nonperforming loans		28,765			54,387			34,900
Other real estate owned		1,624			1,664			1,641
Total nonperforming assets	$	30,389		$	56,051		$	36,541

Asset Quality Ratios
Nonperforming assets / Total loans + OREO		0.64	%		1.22	%		0.82	%
Nonperforming assets / Total assets		0.48	%		0.89	%		0.62	%
Ratio of allowance for credit losses on loans to nonaccrual loans		169.52	%		87.57	%		130.88	%
Allowance for credit losses / Total loans		1.02	%		1.03	%		1.02	%


Consolidated Financial Data Notes:
⁽¹⁾Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’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 these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
⁽²⁾ Capital ratios as of June 30, 2025 are estimated pending final regulatory filings.

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Three Months Ended,
	June 30, 2025							March 31, 2025							June 30, 2024
	Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable^{(1) (4)}	$	771,152		2.82	%	$	5,696	$	765,654		2.73	%	$	5,461	$	702,036		2.09	%	$	3,941
Tax-exempt^{(1) (2) (4)}		24,260		2.64			174		25,345		2.69			181		25,088		2.59			178
Equity securities^{(1) (2)}		7,670		5.44			104		7,428		5.84			107		6,963		5.72			99
Total securities⁽⁴⁾		803,082		2.83			5,974		798,427		2.75			5,749		734,087		2.14			4,218
Loans receivable:
Commercial^{(2) (3)}		1,473,560		6.71			24,664		1,466,323		6.74			24,369		1,416,476		6.85			24,133
Commercial & residential mortgages and loans held for sale^{(2) (3)}		3,068,519		6.18			47,295		3,001,317		6.02			44,572		2,897,473		6.15			44,331
Consumer⁽³⁾		125,972		11.72			3,681		123,755		12.01			3,665		127,684		12.17			3,863
Total loans receivable⁽³⁾		4,668,051		6.50			75,640		4,591,395		6.41			72,606		4,441,633		6.55			72,327
Interest-bearing deposits with the Federal Reserve and other financial institutions		345,988		5.13			4,422		413,704		4.20			4,284		289,925		5.99			4,321
Total earning assets		5,817,121		5.89		$	86,036		5,803,526		5.73		$	82,639		5,465,645		5.89		$	80,866
Noninterest-bearing assets:
Cash and due from banks		58,530							58,152							53,710
Premises and equipment		129,093							129,188							112,386
Other assets		277,241							277,051							268,930
Allowance for credit losses		(46,949	)						(47,342	)						(45,693	)
Total non interest-bearing assets		417,915							417,049							389,333
TOTAL ASSETS	$	6,235,036						$	6,220,575						$	5,854,978
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	707,932		0.97	%	$	1,719	$	704,874		0.88	%	$	1,527	$	713,431		0.76	%	$	1,342
Savings		3,107,520		3.01			23,286		3,131,697		3.09			23,840		3,097,598		3.57			27,464
Time		743,280		3.92			7,271		738,129		3.99			7,267		510,649		3.93			4,988
Total interest-bearing deposits		4,558,732		2.84			32,276		4,574,700		2.89			32,634		4,321,678		3.15			33,794
Short-term borrowings		—		—			—		—		—			—		—		0.00			—
Finance lease liabilities		16,861		5.28			222		15,143		6.32			236		259		4.66			3
Subordinated notes and debentures		105,304		4.10			1,076		105,228		4.15			1,078		105,001		4.36			1,138
Total interest-bearing liabilities		4,680,897		2.88		$	33,574		4,695,071		2.93		$	33,948		4,426,938		3.17		$	34,935
Demand—noninterest-bearing		829,328							814,441							761,270
Other liabilities		90,963							91,654							83,549
Total Liabilities		5,601,188							5,601,166							5,271,757
Shareholders’ equity		633,848							619,409							583,221
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,235,036						$	6,220,575						$	5,854,978
Interest income/Earning assets				5.89	%	$	86,036				5.73	%	$	82,639				5.89	%	$	80,866
Interest expense/Interest-bearing liabilities				2.88			33,574				2.93			33,948				3.17			34,935
Net interest spread				3.01	%	$	52,462				2.80	%	$	48,691				2.72	%	$	45,931
Interest income/Earning assets				5.89	%		86,036				5.73	%		82,639				5.89	%		80,866
Interest expense/Earning assets				2.30			33,574				2.36			33,948				2.55			34,935
Net interest margin (fully tax-equivalent)				3.59	%	$	52,462				3.37	%	$	48,691				3.34	%	$	45,931

⁽¹	⁾	Includes unamortized discounts and premiums.
⁽²	⁾	Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024 was $265 thousand, $260 thousand and $214 thousand, respectively.
⁽³	⁾	Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
⁽⁴	⁾	Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024 was $(42.6) million, $(48.1) million and $(59.2) million, respectively.

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

	Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
	Six Months Ended,
	June 30, 2025							June 30, 2024
	Average Balance			Annual Rate		Interest Inc./Exp.		Average Balance			Annual Rate		Interest Inc./Exp.
ASSETS:
Securities:
Taxable^{(1) (4)}	$	768,379		2.77	%	$	11,157	$	699,431		2.02	%	$	7,592
Tax-exempt^{(1) (2) (4)}		24,800		2.66			354		26,415		2.59			369
Equity securities^{(1) (2)}		7,543		5.64			211		6,864		5.68			194
Total securities⁽⁴⁾		800,722		2.79			11,722		732,710		2.08			8,155
Loans receivable:
Commercial^{(2) (3)}		1,469,962		6.73			49,033		1,423,097		6.88			48,652
Commercial & residential mortgages and loans held for sale^{(2) (3)}		3,035,103		6.10			91,868		2,883,824		6.12			87,734
Consumer⁽³⁾		124,891		11.86			7,346		128,325		11.97			7,641
Total loans receivable⁽³⁾		4,629,956		6.46			148,247		4,435,246		6.53			144,027
Interest-bearing deposits with the Federal Reserve and other financial institutions		379,686		4.62			8,706		239,998		5.70			6,806
Total earning assets		5,810,364		5.81		$	168,675		5,407,954		5.85		$	158,988
Noninterest-bearing assets:
Cash and due from banks		58,337							53,611
Premises and equipment		129,141							111,199
Other assets		277,203							265,453
Allowance for credit losses		(47,144	)						(45,732	)
Total non interest-bearing assets		417,537							384,531
TOTAL ASSETS	$	6,227,901						$	5,792,485
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Demand—interest-bearing	$	706,412		0.93	%	$	3,246	$	726,681		0.70	%	$	2,537
Savings		3,119,542		3.05			47,126		3,031,438		3.52			53,075
Time		740,719		3.96			14,538		517,287		3.78			9,730
Total interest-bearing deposits		4,566,673		2.87			64,910		4,275,406		3.07			65,342
Short-term borrowings		—		—			—		—		—			—
Finance lease liabilities		16,005		5.77			458		271		4.45			6
Subordinated notes and debentures		105,266		4.13			2,154		104,963		4.35			2,270
Total interest-bearing liabilities		4,687,944		2.90		$	67,522		4,380,640		3.10		$	67,618
Demand—noninterest-bearing		821,927							749,124
Other liabilities		91,291							82,730
Total Liabilities		5,601,162							5,212,494
Shareholders’ equity		626,739							579,991
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	6,227,901						$	5,792,485
Interest income/Earning assets				5.81	%	$	168,675				5.85	%	$	158,988
Interest expense/Interest-bearing liabilities				2.90			67,522				3.10			67,618
Net interest spread				2.91	%	$	101,153				2.75	%	$	91,370
Interest income/Earning assets				5.81	%		168,675				5.85	%		158,988
Interest expense/Earning assets				2.33			67,522				2.49			67,618
Net interest margin (fully tax-equivalent)				3.48	%	$	101,153				3.36	%	$	91,370

⁽¹	⁾	Includes unamortized discounts and premiums.
⁽²	⁾	Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the six months ended June 30, 2025 and 2024, was $525 thousand and $431 thousand, respectively.
⁽³	⁾	Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
⁽⁴	⁾	Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the six months ended June 30, 2025 and 2024 was $(45.3) million and $(57.2) million, respectively.

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Calculation of merger costs, net of tax (non-GAAP):
Merger costs – non deductible	$	357		$	1,327		$	—		$	1,684		$	—

Merger costs – deductible		—			202			—			202			—
Statutory federal tax rate		21	%		21	%		21	%		21	%		21	%
Tax benefit of merger costs (non-GAAP)		—			42			—			42			—
Merger costs – deductible, net of tax		—			160			—			160			—

Merger costs, net of tax (non-GAAP)	$	357		$	1,487		$	—		$	1,844		$	—

	Three Months Ended						Six Months Ended
	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Calculation of net income available to common (GAAP):
Net income	$	13,956	$	11,481	$	12,957	$	25,437	$	25,557
Less: preferred stock dividends		1,075		1,075		1,075		2,150		2,150
Net income available to common shareholders	$	12,881	$	10,406	$	11,882	$	23,287	$	23,407

Adjusted calculation of net income available to common (non-GAAP):
Net income available to common shareholders	$	12,881	$	10,406	$	11,882	$	23,287	$	23,407
Add: Merger costs, net of tax (non-GAAP)		357		1,487		—		1,844		—
Adjusted net income available to common shareholders (non-GAAP)	$	13,238	$	11,893	$	11,882	$	25,131	$	23,407

	Three Months Ended						Six Months Ended
	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Calculation of PPNR (non-GAAP):⁽¹⁾
Net interest income	$	52,197	$	48,431	$	45,717	$	100,628	$	90,939
Add: Non-interest income		9,008		8,507		8,865		17,515		17,820
Less: Non-interest expense		39,617		41,038		35,989		80,655		73,413
PPNR (non-GAAP)	$	21,588	$	15,900	$	18,593	$	37,488	$	35,346

Adjusted calculation of PPNR (non-GAAP):⁽¹⁾
Net interest income	$	52,197	$	48,431	$	45,717	$	100,628	$	90,939
Add: Non-interest income		9,008		8,507		8,865		17,515		17,820
Less: Non-interest expense		39,617		41,038		35,989		80,655		73,413
Add: Merger costs		357		1,529		—		1,886		—
Adjusted PPNR (non-GAAP)	$	21,945	$	17,429	$	18,593	$	39,374	$	35,346

⁽¹⁾Management believes that this is an important metric as it illustrates the underlying performance of the Corporation, it enables investors and others to assess the Corporation’s ability to generate capital to cover credit losses through the credit cycle and provides consistent reporting with a key metric used by bank regulatory agencies.

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended						Six Months Ended
	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Basic earnings per common share computation:
Net income available to common shareholders	$	12,881	$	10,406	$	11,882	$	23,287	$	23,407
Less: net income available to common shareholders allocated to participating securities		120		57		101		199		192
Net income available to common shareholders allocated to common stock	$	12,761	$	10,349	$	11,781	$	23,088	$	23,215

Weighted average common shares outstanding, including shares considered participating securities		21,053		20,981		21,005		21,018		20,992
Less: Average participating securities		172		114		174		144		165
Weighted average shares		20,881		20,867		20,831		20,874		20,827
Basic earnings per common share	$	0.61	$	0.50	$	0.57	$	1.11	$	1.12

Diluted earnings per common share computation:
Net income available to common shareholders allocated to common stock	$	12,761	$	10,349	$	11,781	$	23,088	$	23,215

Weighted average common shares outstanding for basic earnings per common share		20,881		20,867		20,831		20,874		20,827
Add: Dilutive effect of stock compensation		72		58		62		65		63
Weighted average shares and dilutive potential common shares		20,953		20,925		20,893		20,939		20,890
Diluted earnings per common share	$	0.61	$	0.50	$	0.56	$	1.10	$	1.11

Adjusted basic earnings per common share computation (non-GAAP):
Net income available to common shareholders	$	12,881	$	10,406	$	11,882	$	23,287	$	23,407
Add: Merger costs, net of tax (non-GAAP)		357		1,487		—		1,844		—
Less: net income available to common shareholders allocated to participating securities		120		57		101		199		192
Less: Adjustment to net income available to common shareholders allocated to participating securities for merger cost impact, net of tax (non-GAAP)		3		8		—		12		—
Adjusted net income available to common shareholders allocated to common stock (non-GAAP)	$	13,115	$	11,828	$	11,781	$	24,920	$	23,215

Weighted average common shares outstanding, including shares considered participating securities		21,053		20,981		21,005		21,018		20,992
Less: Average participating securities		172		114		174		144		165
Weighted average shares		20,881		20,867		20,831		20,874		20,827
Adjusted basic earnings per common share (non-GAAP)	$	0.63	$	0.57	$	0.57	$	1.19	$	1.12

Adjusted diluted earnings per common share computation (non-GAAP):
Adjusted net income available to common shareholders allocated to common stock (non-GAAP)	$	13,115	$	11,828	$	11,781	$	24,920	$	23,215

Weighted average common shares outstanding for basic earnings per common share		20,881		20,867		20,831		20,874		20,827
Add: Dilutive effect of stock compensation		72		58		62		65		63
Weighted average shares and dilutive potential common shares		20,953		20,925		20,893		20,939		20,890
Adjusted diluted earnings per common share (non-GAAP)	$	0.63	$	0.57	$	0.56	$	1.19	$	1.11

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Calculation of dividend payout ratio:
Cash dividends per common share	$	0.180		$	0.180		$	0.175		$	0.360		$	0.350
Diluted earnings per common share		0.61			0.50			0.56			1.10			1.11
Dividend payout ratio		30	%		36	%		31	%		33	%		32	%

Adjusted calculation of dividend payout ratio (non-GAAP):
Cash dividends per common share	$	0.180		$	0.180		$	0.175		$	0.360		$	0.350
Adjusted diluted earnings per common share (non-GAAP)		0.63			0.57			0.56			1.19			1.11
Adjusted dividend payout ratio (non-GAAP)		29	%		32	%		31	%		30	%		32	%

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Calculation of net interest margin:
Interest income	$	85,771		$	82,379		$	80,652		$	168,150		$	158,557
Interest expense		33,574			33,948			34,935			67,522			67,618
Net interest income	$	52,197		$	48,431		$	45,717		$	100,628		$	90,939

Average total earning assets	$	5,817,121		$	5,803,526		$	5,465,645		$	5,810,364		$	5,407,954

Net interest margin (GAAP) (annualized)		3.60	%		3.38	%		3.36	%		3.49	%		3.38	%

Calculation of net interest margin (fully tax equivalent basis) (non-GAAP):
Interest income	$	85,771		$	82,379		$	80,652		$	168,150		$	158,557
Tax equivalent adjustment (non-GAAP)		265			260			214			525			431
Adjusted interest income (fully tax equivalent basis) (non-GAAP)		86,036			82,639			80,866			168,675			158,988
Interest expense		33,574			33,948			34,935			67,522			67,618
Net interest income (fully tax equivalent basis) (non-GAAP)	$	52,462		$	48,691		$	45,931		$	101,153		$	91,370

Average total earning assets	$	5,817,121		$	5,803,526		$	5,465,645		$	5,810,364		$	5,407,954
Less: average mark to market adjustment on investments (non-GAAP)		(42,592	)		(48,070	)		(59,225	)		(45,317	)		(57,186	)
Adjusted average total earning assets, net of mark to market (non-GAAP)	$	5,859,713		$	5,851,596		$	5,524,870		$	5,855,681		$	5,465,140

Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)		3.59	%		3.37	%		3.34	%		3.48	%		3.36	%

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	June 30, 2025			March 31, 2025			June 30, 2024
Calculation of tangible book value per common share and tangible common equity / tangible assets (non-GAAP):
Shareholders’ equity	$	637,281		$	624,508		$	586,700
Less: preferred equity		57,785			57,785			57,785
Common shareholders’ equity		579,496			566,723			528,915
Less: goodwill and other intangibles		43,874			43,874			43,874
Less: core deposit intangible		173			190			241
Tangible common equity (non-GAAP)	$	535,449		$	522,659		$	484,800

Total assets	$	6,318,477		$	6,295,508		$	5,886,571
Less: goodwill and other intangibles		43,874			43,874			43,874
Less: core deposit intangible		173			190			241
Tangible assets (non-GAAP)	$	6,274,430		$	6,251,444		$	5,842,456

Ending shares outstanding		21,119,894			20,980,245			20,998,117

Book value per common share (GAAP)	$	27.44		$	27.01		$	25.19
Tangible book value per common share (non-GAAP)	$	25.35		$	24.91		$	23.09

Common shareholders’ equity / Total assets (GAAP)		9.17	%		9.00	%		8.99	%
Tangible common equity / Tangible assets (non-GAAP)		8.53	%		8.36	%		8.30	%

Adjusted calculation of book value per common share (non-GAAP):
Common shareholders’ equity	$	579,496		$	566,723		$	528,915
Add: Merger costs, net of tax (non-GAAP)		1,844			1,487			—
Adjusted common shareholders’ equity (non-GAAP)	$	581,340		$	568,210		$	528,915

Ending shares outstanding		21,119,894			20,980,245			20,998,117

Adjusted book value per common share (non-GAAP)	$	27.53		$	27.08		$	25.19

Adjusted calculation of tangible book value per common share (non-GAAP):
Tangible common equity (non-GAAP)	$	535,449		$	522,659		$	484,800
Add: Merger costs, net of tax (non-GAAP)		1,844			1,487			—
Adjusted tangible common equity (non-GAAP)	$	537,293		$	524,146		$	484,800

Ending shares outstanding		21,119,894			20,980,245			20,998,117

Adjusted tangible book value per common share (non-GAAP)	$	25.44		$	24.98		$	23.09

Adjusted calculation of tangible common equity / tangible assets (non-GAAP):
Adjusted common shareholders’ equity (non-GAAP)	$	537,293		$	524,146		$	484,800

Tangible assets (non-GAAP)	$	6,274,430		$	6,251,444		$	5,842,456
Add: Merger costs (non-GAAP)		1,886			1,529			—
Adjusted tangible assets (non-GAAP)	$	6,276,316		$	6,252,973		$	5,842,456

Adjusted tangible common equity / Adjusted tangible assets (non-GAAP)		8.56	%		8.38	%		8.30	%

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Calculation of efficiency ratio:
Non-interest expense	$	39,617		$	41,038		$	35,989		$	80,655		$	73,413

Non-interest income	$	9,008		$	8,507		$	8,865		$	17,515		$	17,820
Net interest income		52,197			48,431			45,717			100,628			90,939
Total revenue	$	61,205		$	56,938		$	54,582		$	118,143		$	108,759
Efficiency ratio		64.73	%		72.07	%		65.94	%		68.27	%		67.50	%

Calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):
Non-interest expense	$	39,617		$	41,038		$	35,989		$	80,655		$	73,413
Less: core deposit intangible amortization		16			17			19			33			39
Adjusted non-interest expense (non-GAAP)	$	39,601		$	41,021		$	35,970		$	80,622		$	73,374

Non-interest income	$	9,008		$	8,507		$	8,865		$	17,515		$	17,820

Net interest income	$	52,197		$	48,431		$	45,717		$	100,628		$	90,939
Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)		1,451			1,464			1,318			2,915			2,655
Add: tax exempt investment and loan income (fully tax equivalent basis) (non-GAAP)		2,046			2,076			1,902			4,122			3,834
Adjusted net interest income (fully tax equivalent basis) (non-GAAP)		52,792			49,043			46,301			101,835			92,118
Adjusted net revenue (fully tax equivalent basis) (non-GAAP)	$	61,800		$	57,550		$	55,166		$	119,350		$	109,938

Efficiency ratio (fully tax equivalent basis) (non-GAAP)		64.08	%		71.28	%		65.20	%		67.55	%		66.74	%

Adjusted calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):
Adjusted non-interest expense (non-GAAP)	$	39,601		$	41,021		$	35,970		$	80,622		$	73,374
Less: Merger costs (non-GAAP)		357			1,529			—			1,886			—
Adjusted non-interest expense (non-GAAP)	$	39,244		$	39,492		$	35,970		$	78,736		$	73,374

Adjusted net revenue (fully tax equivalent basis) (non-GAAP)	$	61,800		$	57,550		$	55,166		$	119,350		$	109,938

Adjusted efficiency ratio (fully tax equivalent basis) (non-GAAP)		63.50	%		68.62	%		65.20	%		65.97	%		66.74	%

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Calculation of return on average assets:
Net income	$	13,956		$	11,481		$	12,957		$	25,437		$	25,557
Average total assets	$	6,235,036		$	6,220,575		$	5,854,978		$	6,227,901		$	5,792,485

Return on average assets (GAAP) (annualized)		0.90	%		0.75	%		0.89	%		0.82	%		0.89	%

Adjusted calculation of return on average assets (non-GAAP):
Net income	$	13,956		$	11,481		$	12,957		$	25,437		$	25,557
Add: Merger costs, net of tax (non-GAAP)		357			1,487			—			1,844			—
Adjusted net income	$	14,313		$	12,968		$	12,957		$	27,281		$	25,557
Average total assets	$	6,235,036		$	6,220,575		$	5,854,978		$	6,227,901		$	5,792,485

Adjusted return on average assets (non-GAAP) (annualized)		0.92	%		0.85	%		0.89	%		0.88	%		0.89	%

	June 30, 2025		March 31, 2025		June 30, 2024
Calculation of total deposits
Total deposits	$	5,467,082	$	5,460,078	$	5,110,845

Adjusted calculation of total deposits (non-GAAP):
Total deposits	$	5,467,082	$	5,460,078	$	5,110,845
Add: High cost municipal deposits		77,690		—		—
Adjusted total deposits (non-GAAP)	$	5,544,772	$	5,460,078	$	5,110,845

CNB FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL DATA
Unaudited
(dollars in thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Calculation of return on average tangible common equity (non-GAAP):
Net income	$	13,956		$	11,481		$	12,957		$	25,437		$	25,557
Less: preferred stock dividends		1,075			1,075			1,075			2,150			2,150
Net income available to common shareholders	$	12,881		$	10,406		$	11,882		$	23,287		$	23,407

Average shareholders’ equity	$	633,848		$	619,409		$	583,221		$	626,739		$	579,991
Less: average goodwill & intangibles		44,058			44,074			44,127			44,066			44,137
Less: average preferred equity		57,785			57,785			57,785			57,785			57,785
Average tangible common shareholders’ equity (non-GAAP)	$	532,005		$	517,550		$	481,309		$	524,888		$	478,069

Return on average equity (GAAP) (annualized)		8.83	%		7.52	%		8.94	%		8.18	%		8.86	%
Return on average common equity (GAAP) (annualized)		8.97	%		7.51	%		9.10	%		8.25	%		9.01	%
Return on average tangible common equity (non-GAAP) (annualized)		9.71	%		8.15	%		9.93	%		8.95	%		9.85	%

Adjusted calculation of return on average equity (non-GAAP):
Net income	$	13,956		$	11,481		$	12,957		$	25,437		$	25,557
Add: Merger costs, net of tax (non-GAAP)		357			1,487			—			1,844			—
Adjusted net income (non-GAAP)	$	14,313		$	12,968		$	12,957		$	27,281		$	25,557

Average shareholders’ equity	$	633,848		$	619,409		$	583,221		$	626,739		$	579,991

Adjusted return on average equity (non-GAAP) (annualized)		9.06	%		8.49	%		8.94	%		8.78	%		8.86	%

Adjusted calculation of return on average tangible common equity (non-GAAP):
Net income available to common shareholders	$	12,881		$	10,406		$	11,882		$	23,287		$	23,407
Add: Merger costs, net of tax (non-GAAP)		357			1,487			—			1,844			—
Adjusted net income available to common shareholders	$	13,238		$	11,893		$	11,882		$	25,131		$	23,407

Average tangible common shareholders’ equity (non-GAAP)	$	532,005		$	517,550		$	481,309		$	524,888		$	478,069

Adjusted return on average tangible common equity (non-GAAP) (annualized)		9.98	%		9.32	%		9.93	%		9.66	%		9.85	%

The MIL Network –

July 23, 2025

MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three and Six Months Ended June 30, 2025 and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

WESTFIELD, Mass., July 22, 2025 (GLOBE NEWSWIRE) — Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced today the unaudited results of operations for the three and six months ended June 30, 2025. For the three months ended June 30, 2025, the Company reported net income of $4.6 million, or $0.23 per diluted share, compared to net income of $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024. On a linked quarter basis, net income was $4.6 million, or $0.23 per diluted share, as compared to net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025. For the six months ended June 30, 2025, net income was $6.9 million, or $0.34 per diluted share, compared to net income of $6.5 million, or $0.31 per diluted share, for the six months ended June 30, 2024.

The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.07 per share on the Company’s common stock. The dividend will be payable on or about August 20, 2025 to shareholders of record on August 6, 2025.

James C. Hagan, President and Chief Executive Officer, commented, “We are pleased to report solid earnings for the second quarter of 2025, along with strong overall loan growth and core deposit growth. Core deposits increased $81.4 million, or 5.2%, since year-end, which will be beneficial as we continue to lower deposit costs and reduce our reliance on time deposits. We are also pleased to report that our commercial and industrial loan portfolio increased $22.8 million, or 10.8%, during the six months ended June 30, 2025, and our residential real estate portfolio increased $29.7 million, or 3.8%, during the same period. Growth in commercial and industrial loans is a strategic priority for the Company as we remain focused on meeting the needs of our business and commercial customers.

We believe our balance sheet structure will continue to have a positive impact on earnings in the current interest rate environment. Net interest income increased $2.1 million, or 13.6%, from the three months ended March 31, 2025 to the three months ended June 30, 2025, while the net interest margin increased 31 basis points from 2.49% to 2.80% during the same period. Our loan growth and disciplined approach to managing funding costs have allowed us to expand our net interest margin as we continue to decrease the cost of interest-bearing liabilities and our reliance on time deposits. Our asset quality remains solid, with nonperforming assets to total assets of 0.21%, and total delinquency as a percentage of total loans of 0.18%.”

Hagan concluded, “Our capital position continues to remain strong, and the Company is considered to be well-capitalized as defined by the regulators. We remain disciplined in our capital management strategies and during the six months ended June 30, 2025, we repurchased 497,318 shares of common stock with an average price per share of $9.31. We continue to believe that buying back shares, at current prices, represents a prudent use of the Company’s capital. On April 22, 2025, we announced a new repurchase plan (the “2025 Plan”) which commenced upon the completion of the 2024 Repurchase Plan (the “2024 Plan”). On June 3, 2025, we announced the completion of the 2024 Plan, under which the Company repurchased a total of 1.0 million shares at an average price per share of $8.79. We are pleased with our second quarter results and are committed to delivering long-term value to shareholders through capital management strategies, which include continued loan growth, share repurchases and quarterly cash dividends.”

Key Highlights:

Loans and Deposits

Total gross loans increased $22.1 million, or 1.1%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 77.1% of total assets, at June 30, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $29.7 million, or 3.8%, and an increase in commercial and industrial loans of $22.8 million, or 10.8%. These increases were partially offset by a decrease in commercial real estate loans of $29.5 million, or 2.7%, and a decrease in consumer loans of $879,000, or 20.0%.

At June 30, 2025, total deposits of $2.3 billion increased $67.5 million, or 3.0%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $81.4 million, or 5.2%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.4% of total deposits, at June 30, 2025. Time deposits decreased $13.9 million, or 2.0%, from $703.6 million at December 31, 2024 to $689.7 million at June 30, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024. The Company did not have brokered time deposits at June 30, 2025. The loan-to-deposit ratio decreased from 91.5% at December 31, 2024 to 89.8% at June 30, 2025.

Allowance for Loan Losses and Credit Quality

At June 30, 2025, the allowance for credit losses was $19.7 million, or 0.94% of total loans, compared to $19.5 million, or 0.94% of total loans, at December 31, 2024. The allowance for loan losses, as a percentage of nonaccrual loans, was 343.1% and 362.9% at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025, nonaccrual loans totaled $5.8 million, or 0.27% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. Total delinquent loans decreased from $5.0 million, or 0.24% of total loans, at December 31, 2024 to $3.9 million, or 0.18% of total loans, at June 30, 2025. At June 30, 2025 and December 31, 2024, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin increased 31 basis points, from 2.49% for the three months ended March 31, 2025 to 2.80% for the three months ended June 30, 2025. The net interest margin, on a tax-equivalent basis, increased 31 basis points from 2.51% for the three months ended March 31, 2025 to 2.82%, for the three months ended June 30, 2025.

Stock Repurchase Program

On April 22, 2025, the Board of Directors authorized the 2025 Plan, pursuant to which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.8%, of the Company’s then-outstanding shares of common stock, upon the completion of the 2024 Plan. On June 3, 2025, the Company announced the completion of its 2024 Plan under which the Company repurchased a total of 1.0 million shares at an average price per share of $8.79.

During the three months ended June 30, 2025, the Company repurchased 290,609 shares of its common stock at an average price per share of $9.45. During the six months ended June 30, 2025, the Company repurchased 497,318 shares of its common stock at an average price per share of $9.31. As of June 30, 2025, there were 975,000 shares of common stock available for repurchase under the 2025 Plan.

The repurchase of shares under our 2025 Plan is administered through an independent broker. The shares of common stock repurchased under the 2025 Plan have been and will continue to be purchased from time to time at prevailing market prices, through open market or privately negotiated transactions, or otherwise, depending upon market conditions. There is no guarantee as to the exact number, or value, of shares that will be repurchased by the Company, and the Company may discontinue repurchases at any time that the Company’s management (“Management”) determines additional repurchases are not warranted. The timing and amount of additional share repurchases under the 2025 Plan will depend on a number of factors, including the Company’s stock price performance, ongoing capital planning considerations, general market conditions, and applicable legal requirements.

Book Value and Tangible Book Value

The Company’s book value per share was $11.68 at June 30, 2025 compared to $11.30 at December 31, 2024, while tangible book value per share, a non-GAAP financial measure, increased $0.38, or 3.6%, from $10.63 at December 31, 2024 to $11.01 at June 30, 2025. See pages 19-21 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended June 30, 2025 Compared to the Three Months Ended March 31, 2025

For the three months ended June 30, 2025, the Company reported an increase in net income of $2.3 million, or 99.3%, from $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, to $4.6 million, or $0.23 per diluted share. Net interest income increased $2.1 million, or 13.6%, the provision for credit losses decreased $757,000, non-interest income increased $652,000, or 23.6%, and non-interest expense increased $472,000, or 3.1%. Return on average assets and return on average equity were 0.69% and 7.76%, respectively, for the three months ended June 30, 2025, compared to 0.35% and 3.94%, respectively, for the three months ended March 31, 2025.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, increased $2.1 million, or 13.6%, to $17.6 million for the three months ended June 30, 2025, from $15.5 million for the three months ended March 31, 2025. The increase in net interest income was primarily due to an increase in interest income of $1.2 million, or 4.1%, and a decrease in interest expense of $933,000, or 7.2%. During the three months ended June 30, 2025, the Company recorded $425,000 in prepayment penalties related to payoffs in the commercial portfolio. The $933,000, or 7.2%, decrease in interest expense was primarily due to a decrease in average rates paid on interest-bearing deposits during the three months ended June 30, 2025, compared to the three months ended March 31, 2025.

The net interest margin was 2.80% for the three months ended June 30, 2025, compared to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, was 2.82% for the three months ended June 30, 2025, compared to 2.51% for the three months ended March 31, 2025. Excluding the prepayment penalties discussed above, the net interest margin increased 24 basis points from 2.49% for the three months ended March 31, 2025 to 2.73% for the three months ended June 30, 2025. The increase in the net interest margin was primarily due to an increase in the yield on average interest-earning assets and a decrease in the average cost of interest-bearing liabilities.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 13 basis points from 4.56%, for the three months ended March 31, 2025 to 4.69% for the three months ended June 30, 2025. The average loan yield, without the impact of tax-equivalent adjustments, increased 16 basis points from 4.89%, for the three months ended March 31, 2025, to 5.05% for the three months ended June 30, 2025. During the same period, average loans increased $7.8 million, or 0.4%, and average securities increased $9.7 million, or 2.7%, while average short-term investments decreased $17.4 million, or 22.9%.

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 18 basis points from 2.16% for the three months ended March 31, 2025 to 1.98% for the three months ended June 30, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, decreased seven basis points to 1.01% for the three months ended June 30, 2025, from 1.08% for the three months ended March 31, 2025. The average cost of time deposits decreased 42 basis points from 4.11% for the three months ended March 31, 2025, to 3.69% for the three months ended June 30, 2025. The average cost of borrowings, including subordinated debt, was 5.04% for the three months ended March 31, 2025 and for the three months ended June 30, 2025. Average demand deposits, an interest-free source of funds, increased $3.2 million, or 0.6%, from $569.6 million, or 24.8%, of total average deposits, for the three months ended March 31, 2025, to $572.8 million, or 24.9% of total average deposits, for the three months ended June 30, 2025.

(Reversal of) Provision for Credit Losses

During the three months ended June 30, 2025, the Company recorded a reversal of credit losses of $615,000, compared to a provision for credit losses of $142,000 during the three months ended March 31, 2025. The reversal of credit losses was a result of a recovery in the amount of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. As of June 30, 2025, the relationship has been paid in full and the Company does not expect to charge-off or recover any additional funds from the borrower. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

During the three months ended June 30, 2025, the Company recorded net recoveries of $585,000 compared to net charge-offs of $29,000 for the three months ended March 31, 2025.

Non-Interest Income

On a sequential quarter basis, non-interest income increased $652,000, or 23.6%, to $3.4 million for the three months ended June 30, 2025, from $2.8 million for the three months ended March 31, 2025. During the three months ended June 30, 2025, service charges and fees on deposits increased $244,000, or 10.7%, to $2.5 million from the three months ended March 31, 2025. Income from bank-owned life insurance (“BOLI”) increased $43,000, or 9.1%, from the three months ended March 31, 2025 to $516,000 for the three months ended June 30, 2025.

During the three months ended June 30, 2025, the Company reported a gain of $4,000 from mortgage banking activities, compared to a gain of $7,000 during the three months ended March 31, 2025. During the three months ended June 30, 2025, the Company reported unrealized gains on marketable equity securities of $25,000, compared to unrealized losses of $5,000 during the three months ended March 31, 2025. During the three months ended June 30, 2025, the Company reported gains on non-marketable equity investments of $243,000 and did not have comparable income during the three months ended March 31, 2025. During the three months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended March 31, 2025.

Non-Interest Expense

For the three months ended June 30, 2025, non-interest expense increased $472,000, or 3.1%, to $15.7 million from $15.2 million for the three months ended March 31, 2025. Salaries and related benefits increased $418,000, or 5.0%, due to an increase in deferred compensation expense to reflect updated performance award estimates and a full quarter of annual salary merit increases. Debit card processing and ATM network costs increased $97,000, or 16.8%, professional fees increased $77,000, or 14.1%, data processing expense increased $51,000, or 5.8%, advertising expense increased $14,000, or 3.3%, furniture and equipment expense increased $4,000, or 0.8%, and other non-interest expense increased $4,000, or 0.3%. These increases were partially offset by a decrease in occupancy expense of $147,000, or 10.4%, primarily due to a decrease in snow removal costs of $140,000. FDIC insurance expense decreased $32,000, or 7.4%, and software related expenses decreased $14,000, or 2.1%.

For the three months ended June 30, 2025 and the three months ended March 31, 2025, the efficiency ratio was 74.4% and 83.0%, respectively. For the three months ended June 30, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 75.3% compared to 83.0% for the three months ended March 31, 2025. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by higher revenues during the three months ended June 30, 2025 compared to the three months ended March 31, 2025. The Company’s detailed reconciliation between the non-GAAP measure and the comparable GAAP amount are included at the end of this document. See pages 19-21 for the related adjusted efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended June 30, 2025 was $1.4 million, with an effective tax rate of 23.7%, compared to $664,000, with an effective tax rate of 22.4%, for the three months ended March 31, 2025. The increase in tax expense is due to higher projected pre-tax income for the twelve months ended December 31, 2025.

Net Income for the Three Months Ended June 30, 2025 Compared to the Three Months Ended June 30, 2024

The Company reported an increase in net income of $1.1 million, or 30.7%, from $3.5 million, or $0.17 per diluted share, for the three months ended June 30, 2024 to $4.6 million, or $0.23 per diluted share, for the three months ended June 30, 2025. Net interest income increased $3.2 million, or 21.9%, provision for credit losses decreased $321,000, non-interest income decreased $423,000, or 11.0%, and non-interest expense increased $1.3 million, or 9.4%, during the same period. Return on average assets and return on average equity were 0.69% and 7.76%, respectively, for the three months ended June 30, 2025, compared to 0.55% and 6.03%, respectively, for the three months ended June 30, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $3.2 million, or 21.9%, to $17.6 million, for the three months ended June 30, 2025, from $14.5 million for the three months ended June 30, 2024. The increase in net interest income was due to an increase in interest and dividend income of $2.8 million, or 10.5%, and a decrease in interest expense of $362,000, or 2.9%. During the three months ended June 30, 2025, the Company recorded $425,000 in prepayment penalties related to payoffs in the commercial portfolio. The increase in interest income was primarily due to a $129.4 million, or 5.4%, increase in average interest-earning assets and a 20 basis point increase in the average yield on interest-earning assets, from the three months ended June 30, 2024 to the three months ended June 30, 2025.

The net interest margin increased 38 basis points from 2.42% for the three months ended June 30, 2024 to 2.80% for the three months ended June 30, 2025. The net interest margin, on a tax-equivalent basis, was 2.82% for the three months ended June 30, 2025, compared to 2.44% for the three months ended June 30, 2024. Excluding the prepayment penalties discussed above, the net interest margin increased 31 basis points from 2.42%, for the three months ended June 30, 2024 to 2.73%, for the three months ended June 30, 2025. The increase in the net interest margin was primarily due to an increase in the average yield on interest-earning assets and a decrease in the average cost of interest-bearing liabilities.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 20 basis points from 4.49% for the three months ended June 30, 2024 to 4.69%, for the three months ended June 30, 2025. The average loan yield, without the impact of tax-equivalent adjustments, increased 20 basis points from 4.85% for the three months ended June 30, 2024 to 5.05%, for the three months ended June 30, 2025. During the three months ended June 30, 2025, average interest-earning assets increased $129.4 million, or 5.4% to $2.5 billion, primarily due to an increase in average loans of $64.2 million, or 3.2%, an increase in average short-term investments, consisting of cash and cash equivalents, of $44.3 million, or 309.1%, and an increase in average securities of $20.2 million, or 5.7%.

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased 18 basis points from 2.16% for the three months ended June 30, 2024 to 1.98% for the three months ended June 30, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 14 basis points from 0.87% for the three months ended June 30, 2024 to 1.01% for the three months ended June 30, 2025. The average cost of time deposits decreased 70 basis points from 4.39% for the three months ended June 30, 2024 to 3.69% for the three months ended June 30, 2025. The average cost of borrowings, including subordinated debt, increased four basis points from 5.00% for the three months ended June 30, 2024 to 5.04%, for the three months ended June 30, 2025. Average demand deposits, an interest-free source of funds, increased $24.1 million, or 4.4%, from $548.8 million, or 25.7% of total average deposits, for the three months ended June 30, 2024, to $572.8 million, or 24.9% of total average deposits, for the three months ended June 30, 2025.

Reversal of Credit Losses

During the three months ended June, 30, 2025, the Company recorded a reversal of credit losses of $615,000, compared to a reversal of credit losses of $294,000 during the three months ended June 30, 2024. The reversal of credit losses recorded during the three months ended June 30, 2025 was a result of a recovery in the amount of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. As of June 30, 2025, the relationship has been paid in full and the Company does not expect to charge-off or recover any additional funds from the borrower. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net recoveries of $585,000 for the three months ended June 30, 2025, as compared to net charge-offs of $10,000 for the three months ended June 30, 2024.

Non-Interest Income

Non-interest income decreased $423,000, or 11.0%, to $3.4 million for the three months ended June 30, 2025, from $3.8 million for the three months ended June 30, 2024. During the three months ended June 30, 2025, service charges and fees on deposits increased $187,000, or 8.0%, income from BOLI increased $14,000, or 2.8%, from $502,000 for the three months ended June 30, 2024 to $516,000 for the three months ended June 30, 2025.

During the three months ended June 30, 2025, the Company reported an unrealized gain on marketable equity securities of $25,000, compared to unrealized gain on marketable equity securities of $4,000 during the three months ended June 30, 2024. During the three months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments, compared to a gain of $987,000 on non-marketable equity investments during the three months ended June 30, 2024. During the three months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the three months ended June 30, 2024. During the three months ended June 30, 2025, the Company reported $4,000 in gains from mortgage banking activities and did not have comparable income during the three months ended June 30, 2024.

Non-Interest Expense

For the three months ended June 30, 2025, non-interest expense increased $1.3 million, or 9.4%, to $15.7 million from $14.3 million for the three months ended June 30, 2024. The increase in non-interest expense was due to an increase in salaries and benefits of $930,000, or 11.8%, an increase in advertising and marketing expense of $104,000, or 30.7%, an increase in data processing expense of $87,000, or 10.3%, an increase in software related expense of $79,000, or 14.0%, an increase in FDIC insurance expense of $76,000, or 23.5%, an increase in occupancy expense of $47,000, or 3.9%, an increase in professional fees of $42,000, or 7.2%, an increase in debit card and ATM processing fees of $31,000, or 4.8%, an increase in furniture and equipment expense of $8,000, or 1.7%, and a decrease in other non-interest expense of $62,000, or 4.4%.

For the three months ended June 30, 2025, the efficiency ratio was 74.4%, compared to 78.2% for the three months ended June 30, 2024. For the three months ended June 30, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 75.3% compared to 82.7% for the three months ended June 30, 2024. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by an increase in total revenues, defined as the sum of net interest income and non-interest income, during the three months ended June 30, 2025, compared to the three months ended June 30, 2024. See pages 19-21 for the related ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the three months ended June 30, 2025 was $1.4 million, or an effective tax rate of 23.7%, compared to $771,000, or an effective tax rate of 18.0%, for the three months ended June 30, 2024. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2025.

Net Income for the Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024

For the six months ended June 30, 2025, the Company reported net income of $6.9 million, or $0.34 per diluted share, compared to $6.5 million, or $0.31 per diluted share, for the six months ended June 30, 2024. Return on average assets and return on average equity were 0.52% and 5.87% for the six months ended June 30, 2025, respectively, compared to 0.51% and 5.53% for the six months ended June 30, 2024, respectively.

Net Interest Income and Net Interest Margin

During the six months ended June 30, 2025, net interest income increased $3.4 million, or 11.3%, to $33.2 million, compared to $29.8 million for the six months ended June 30, 2024. The increase in net interest income was due to an increase in interest income of $4.6 million, or 8.7%, partially offset by an increase in interest expense of $1.3 million, or 5.4%.

For the six months ended June 30, 2025, the net interest margin increased 14 basis points from 2.50% for the six months ended June 30, 2024 to 2.64%. The net interest margin, on a tax-equivalent basis, was 2.66% for the six months ended June 30, 2025, compared to 2.52% for the six months ended June 30, 2024. During the six months ended June 30, 2025 and the six months ended June 30, 2024, the Company recorded $425,000 and $8,000, respectively, in prepayment penalties related to payoffs in the commercial portfolio. Excluding the prepayment penalties, the net interest margin increased 11 basis points from 2.50% for the six months ended June 30, 2024 to 2.61% for the six months ended June 30, 2025.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.63% for the six months ended June 30, 2025, compared to 4.47% for the six months ended June 30, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.97% for the six months ended June 30, 2025, compared to 4.84% for the six months ended June 30, 2024. During the six months ended June 30, 2025, average interest-earning assets increased $128.0 million, or 5.3%, to $2.5 billion, from the same period in 2024. The increase was primarily due to an increase in average loans of $58.0 million, or 2.9%, an increase in average short-term investments, consisting of cash and cash equivalents, of $55.4 million, or 467.4%, and an increase in average securities of $13.1 million, or 3.7%.

The average cost of total funds, including non-interest bearing accounts and borrowings, was 2.07% for each of the six months ended June 30, 2025 and June 30, 2024. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 23 basis points to 1.05% for the six months ended June 30, 2025, from 0.82% for the six months ended June 30, 2024. The average cost of time deposits decreased 36 basis points from 4.26% for the six months ended June 30, 2024 to 3.90% for the six months ended June 30, 2025. The average cost of borrowings, including subordinated debt, increased eight basis points from 4.96% for the six months ended June 30, 2024 to 5.04% for the six months ended June 30, 2025. Average demand deposits, an interest-free source of funds, increased $18.0 million, or 3.3%, from $553.2 million, or 25.9% of total average deposits, for the six months ended June 30, 2024 to $571.2 million, or 24.8% of total average deposits, for the six months ended June 30, 2025.

Reversal of Credit Losses

During the six months ended June 30, 2025, the Company recorded a reversal of credit losses of $473,000, compared to a reversal of credit losses of $844,000 during the six months ended June 30, 2024. The decrease was primarily due to changes in the loan mix as well as economic environment and related adjustments to the quantitative components of the CECL methodology. The provision for credit losses was determined by a number of factors: the continued strong credit performance of the Company’s loan portfolio, changes in the loan portfolio mix and Management’s consideration of existing economic conditions and the economic outlook from the Federal Reserve’s actions to control inflation. Management continues to monitor macroeconomic variables related to increasing interest rates, tariffs, inflation and concerns of an economic downturn, and believes it is appropriately reserved for the current economic environment.

The Company recorded net recoveries of $556,000 for the six months ended June 30, 2025, as compared to net recoveries of $57,000 for the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company recorded a recovery of $624,000 on a previously charged-off commercial relationship acquired on October 21, 2016 from Chicopee Bancorp, Inc. As of June 30, 2025, the relationship has been paid in full and the Company does not expect to charge-off or recover any additional funds from the borrower.

Non-Interest Income

For the six months ended June 30, 2025, non-interest income decreased $338,000, or 5.2%, from $6.5 million during the six months ended June 30, 2024 to $6.2 million. During the same period, service charges and fees on deposits increased $252,000, or 5.5%, and income from BOLI increased $34,000, or 3.6%. During the six months ended June 30, 2025, the Company reported a gain of $243,000 on non-marketable equity investments, compared to a gain of $987,000 during the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company reported $95,000 in other income from loan-level swap fees on commercial loans and did not have comparable income during the six months ended June 30, 2024. During the six months ended June 30, 2025, the Company reported unrealized gains on marketable equity securities of $20,000, compared to unrealized gains on marketable equity securities of $12,000 during the six months ended June 30, 2024. Gains and losses from the investment portfolio vary from quarter to quarter based on market conditions, as well as the related yield curve and valuation changes. During the six months ended June 30, 2025, the Company reported $11,000 in gains from mortgage banking activities and did not have comparable gains or losses during the six months ended June 30, 2024. In addition, during the six months ended June 30, 2024, the Company reported a loss on the disposal of premises and equipment of $6,000 and did not have a comparable gain or loss during the six months ended June 30, 2025.

Non-Interest Expense

For the six months ended June 30, 2025, non-interest expense increased $1.7 million, or 6.0%, to $30.8 million, compared to $29.1 million for the six months ended June 30, 2024. The increase in non-interest expense was primarily due to an increase in salaries and employee benefits of $1.1 million, or 6.8%, due to an increase in deferred compensation expense to reflect updated performance award estimates. Advertising expense increased $184,000, or 26.7%, data processing increased $107,000, or 6.3%, FDIC insurance expense increased $97,000, or 13.2%, occupancy expense increased $96,000, or 3.7%, debit card and ATM processing fees increased $56,000, or 4.7%, software related expenses increased $39,000, or 3.1%, professional fees increased $19,000, or 1.7%, furniture and equipment expense increased $11,000, or 1.1%, and other non-interest expense increased $36,000, or 1.4%.

For the six months ended June 30, 2025, the efficiency ratio was 78.4%, compared to 80.1% for the six months ended June 30, 2024. For the six months ended June 30, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 78.9%, compared to 82.4% for the six months ended June 30, 2024. The decreases in the efficiency ratio and the adjusted efficiency ratio were driven by higher revenues, defined as the sum of net interest income and non-interest income, during the six months ended June 30, 2025, compared to the six months ended June 30, 2024. The adjusted efficiency ratio is a non-GAAP measure. See pages 19-21 for the related efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

Income tax expense for the six months ended June 30, 2025 was $2.1 million, representing an effective tax rate of 23.2%, compared to $1.6 million, representing an effective tax rate of 19.8%, for six months ended June 30, 2024. The increase is due to higher projected pre-tax income for the twelve months ended December 31, 2025.

Balance Sheet

At June 30, 2025, total assets were $2.7 billion, an increase of $58.1 million, or 2.2%, from December 31, 2024. The increase in total assets was primarily due to an increase in total gross loans of $22.1 million, or 1.1%, an increase in cash and cash equivalents of $26.9 million, or 40.4%, and an increase in investment securities of $10.8 million, or 2.9%.

Investments

At June 30, 2025, the investment securities portfolio totaled $376.9 million, or 13.9% of total assets, compared to $366.1 million, or 13.8% of total assets, at December 31, 2024. At June 30, 2025, the Company’s available-for-sale securities portfolio, recorded at fair market value, increased $18.1 million, or 11.3%, from $160.7 million at December 31, 2024 to $178.8 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $7.4 million, or 3.6%, from $205.0 million at December 31, 2024 to $197.7 million at June 30, 2025.

At June 30, 2025, the Company reported unrealized losses on the available-for-sale securities portfolio of $26.6 million, or 12.9% of the amortized cost basis of the available-for-sale securities portfolio, compared to unrealized losses of $31.2 million, or 16.2% of the amortized cost basis of the available-for-sale securities at December 31, 2024. At June 30, 2025, the Company reported unrealized losses on the held-to-maturity securities portfolio of $35.4 million, or 17.8% of the amortized cost basis of the held-to-maturity securities portfolio, compared to $39.4 million, or 19.2% of the amortized cost basis of the held-to-maturity securities portfolio at December 31, 2024.

The securities in which the Company may invest are limited by regulation. Federally chartered savings banks have authority to invest in various types of assets, including U.S. Treasury obligations, securities of various government-sponsored enterprises, mortgage-backed securities, certain certificates of deposit of insured financial institutions, repurchase agreements, overnight and short-term loans to other banks, corporate debt instruments and marketable equity securities. The securities, with the exception of $8.7 million in corporate bonds, are issued by the United States government or government-sponsored enterprises and are therefore either explicitly or implicitly guaranteed as to the timely payment of contractual principal and interest. These positions are deemed to have no credit impairment, therefore, the disclosed unrealized losses with the securities portfolio relate primarily to changes in prevailing interest rates. In all cases, price improvement in future periods will be realized as the issuances approach maturity.

Management regularly reviews the portfolio for securities in an unrealized loss position. At June 30, 2025 and December 31, 2024, the Company did not record any credit impairment charges on its securities portfolio and attributed the unrealized losses primarily due to fluctuations in general interest rates or changes in expected prepayments and not due to credit quality. The primary objective of the Company’s investment portfolio is to provide liquidity and to secure municipal deposit accounts while preserving the safety of principal. The available-for-sale and held-to-maturity portfolios are both eligible for pledging to the Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) as collateral for borrowings. The portfolios are comprised of high-credit quality investments and both portfolios generated cash flows monthly from interest, principal amortization and payoffs, which support’s the Bank’s objective to provide liquidity.

Total Loans

Total gross loans increased $22.1 million, or 1.1%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 77.1% of total assets, at June 30, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $29.7 million, or 3.8%, and an increase in commercial and industrial loans of $22.8 million, or 10.8%. The increase in commercial and industrial loans was partially due to an increase in line of credit utilization, from 21.9% at December 31, 2024 to 26.1% at June 30, 2025. These increases were partially offset by a decrease in commercial real estate loans of $29.5 million, or 2.7%, and a decrease in consumer loans of $879,000, or 20.0%.

The following table presents a summary of the loan portfolio by the major classification of loans at the periods indicated:

	June 30, 2025		December 31, 2024
	(Dollars in thousands)

Commercial real estate loans:
Non-owner occupied	$	859,162	$	880,828
Owner occupied		187,043		194,904
Total commercial real estate loans		1,046,205		1,075,732

Residential real estate loans:
Residential		677,356		653,802
Home equity		128,003		121,857
Total residential real estate loans		805,359		775,659

Commercial and industrial loans		234,505		211,656

Consumer loans		3,512		4,391
Total gross loans		2,089,581		2,067,438
Unamortized premiums and net deferred loans fees and costs		3,050		2,751
Total loans	$	2,092,631	$	2,070,189

Credit Quality

Management continues to closely monitor the loan portfolio for any signs of deterioration in borrowers’ financial condition and also in light of speculation that commercial real estate values may deteriorate as the market continues to adjust to higher vacancies and interest rates. We continue to proactively take steps to mitigate risk in our loan portfolio.

Total delinquency was $3.9 million, or 0.18% of total loans, at June 30, 2025, compared to $5.0 million, or 0.24% of total loans at December 31, 2024. At June 30, 2025, nonaccrual loans totaled $5.8 million, or 0.27% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. At June 30, 2025 and December 31, 2024, there were no loans 90 or more days past due and still accruing interest. Total nonaccrual assets totaled $5.8 million, or 0.21% of total assets, at June 30, 2025, compared to $5.4 million, or 0.20% of total assets, at December 31, 2024. At June 30, 2025 and December 31, 2024, the Company did not have any other real estate owned.

At June 30, 2025, the allowance for credit losses was $19.7 million, or 0.94% of total loans and 343.1% of nonaccrual loans, compared to $19.5 million, or 0.94% of total loans and 362.9% of nonaccrual loans, at December 31, 2024. Total criticized loans, defined as special mention and substandard loans, decreased $12.3 million, or 32.0%, from $38.4 million, or 1.9% of total loans, at December 31, 2024 to $26.1 million, or 1.2% of total gross loans, at June 30, 2025.

Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At June 30, 2025, the commercial real estate portfolio totaled $1.0 billion, and represented 50.1% of total gross loans. Of the $1.0 billion, $859.2 million, or 82.1%, was categorized as non-owner occupied commercial real estate and represented 316.9% of the Bank’s total risk-based capital. More details on the diversification of the loan portfolio are available in the supplementary earnings presentation.

Deposits

At June 30, 2025, total deposits were $2.3 billion and increased $67.5 million, or 3.0%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $81.4 million, or 5.2%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.4% of total deposits, at June 30, 2025. Non-interest-bearing deposits increased $29.6 million, or 5.2%, to $595.3 million, and represent 25.5% of total deposits, money market accounts increased $25.3 million, or 3.8%, to $686.8 million, interest-bearing checking accounts increased $18.3 million, or 12.2%, to $168.7 million, and savings accounts increased $8.1 million, or 4.5%, to $189.7 million.

Time deposits decreased $13.9 million, or 2.0%, from $703.6 million at December 31, 2024 to $689.7 million at June 30, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at December 31, 2024. The Company did not have brokered time deposits at June 30, 2025. We continue our disciplined and focused approach to core relationship management and customer outreach to meet funding requirements and liquidity needs, with an emphasis on retaining a long-term core customer relationship base by competing for and retaining deposits in our local market. At June 30, 2025, the Bank’s uninsured deposits totaled $688.4 million, or 29.5% of total deposits, compared to $643.6 million, or 28.4% of total deposits, at December 31, 2024.

The table below is a summary of our deposit balances for the periods noted:


	June 30, 2025		December 31, 2024		June 30, 2024
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	595,263	$	565,620	$	553,329
Interest-bearing accounts		168,679		150,348		149,100
Savings accounts		189,716		181,618		186,171
Money market accounts		686,774		661,478		611,501
Total Core Deposits	$	1,640,432	$	1,559,064	$	1,500,101
Time Deposits:		689,681		703,583		671,708
Total Deposits:	$	2,330,113	$	2,262,647	$	2,171,809

FHLB and Subordinated Debt

At June 30, 2025, total borrowings decreased $1.3 million, or 1.1%, from $123.1 million at December 31, 2024 to $121.8 million. At June 30, 2025, short-term borrowings decreased $1.4 million, or 25.1%, to $4.0 million, compared to $5.4 million at December 31, 2024. Long-term borrowings were $98.0 million at June 30, 2025 and December 31, 2024. At June 30, 2025 and December 31, 2024, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes.

As of June 30, 2025, the Company had $452.7 million of additional borrowing capacity at the FHLB, $383.8 million of additional borrowing capacity under the FRB Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At June 30, 2025, shareholders’ equity was $239.4 million, or 8.8% of total assets, compared to $235.9 million, or 8.9% of total assets, at December 31, 2024. The change was primarily attributable to a decrease in accumulated other comprehensive loss of $3.5 million, cash dividends paid of $2.9 million, repurchase of shares at a cost of $4.7 million, partially offset by net income of $6.9 million. At June 30, 2025, total shares outstanding were 20,494,501. The Company’s regulatory capital ratios continue to be strong and in excess of regulatory minimum requirements to be considered well-capitalized as defined by regulators and internal Company targets.

	June 30, 2025				December 31, 2024
	Company		Bank		Company		Bank
Total Capital (to Risk Weighted Assets)	14.42	%	13.69	%	14.38	%	13.65	%
Tier 1 Capital (to Risk Weighted Assets)	12.40	%	12.67	%	12.37	%	12.64	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)	12.40	%	12.67	%	12.37	%	12.64	%
Tier 1 Leverage Ratio (to Adjusted Average Assets)	9.10	%	9.29	%	9.14	%	9.34	%

Dividends

Although the Company has historically paid quarterly dividends on its common stock and currently intends to continue to pay such dividends, the Company’s ability to pay such dividends depends on a number of factors, including restrictions under federal laws and regulations on the Company’s ability to pay dividends, and as a result, there can be no assurance that dividends will continue to be paid in the future.

About Western New England Bancorp, Inc.

Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.

Forward-Looking Statements

This press release contains “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, with respect to the Company’s financial condition, liquidity, results of operations, future performance, and business. Forward-looking statements may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” and “potential.” Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are subject to various factors which could cause actual results to differ materially from these estimates. These factors include, but are not limited to:

unpredictable changes in general economic or political conditions, financial markets, fiscal, monetary and regulatory policies, including actual or potential stress in the banking industry;
unstable political and economic conditions, including changes in tariff policies, which could materially impact credit quality trends and the ability to generate loans and gather deposits;
inflation and governmental responses to inflation, including recent sustained increases and potential future increases in interest rates that reduce margins;
the effect on our operations of governmental legislation and regulation, including changes in accounting regulation or standards, the nature and timing of the adoption and effectiveness of new requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Basel guidelines, capital requirements and other applicable laws and regulations;
significant changes in accounting, tax or regulatory practices or requirements;
new legal obligations or liabilities or unfavorable resolutions of litigation;
disruptive technologies in payment systems and other services traditionally provided by banks;
the highly competitive industry and market area in which we operate;
operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks;
failure or circumvention of our internal controls or procedures;
changes in the securities markets which affect investment management revenues;
increases in Federal Deposit Insurance Corporation deposit insurance premiums and assessments;
the soundness of other financial services institutions which may adversely affect our credit risk;
certain of our intangible assets may become impaired in the future;
the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
new lines of business or new products and services, which may subject us to additional risks;
changes in key management personnel which may adversely impact our operations;
severe weather, natural disasters, acts of war or terrorism and other external events which could significantly impact our business; and
other risk factors detailed from time to time in our SEC filings.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from the results discussed in these forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake any obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except to the extent required by law.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Statements of Net Income and Other Data (Dollars in thousands, except per share data) (Unaudited)
	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 AND DIVIDEND INCOME:
Loans	$	26,214		$	24,984		$	25,183		$	25,134		$	24,340		$	51,198		$	48,581
Securities		2,588			2,422			2,273			2,121			2,141			5,010			4,255
Other investments		169			191			214			189			148			360			284
Short-term investments		641			840			916			396			173			1,481			286
Total interest and dividend income		29,612			28,437			28,586			27,840			26,802			58,049			53,406

INTEREST EXPENSE:
Deposits		10,437			11,376			11,443			11,165			10,335			21,813			19,628
Short-term borrowings		47			54			60			71			186			101			469
Long-term debt		1,232			1,219			1,557			1,622			1,557			2,451			2,985
Subordinated debt		254			254			253			254			254			508			508
Total interest expense		11,970			12,903			13,313			13,112			12,332			24,873			23,590

Net interest and dividend income		17,642			15,534			15,273			14,728			14,470			33,176			29,816

(REVERSAL OF) PROVISION FOR CREDIT LOSSES		(615	)		142			(762	)		941			(294	)		(473	)		(844	)

Net interest and dividend income after (reversal of) provision for credit losses		18,257			15,392			16,035			13,787			14,764			33,649			30,660

NON-INTEREST INCOME:
Service charges and fees on deposits		2,528			2,284			2,301			2,341			2,341			4,812			4,560
Income from bank-owned life insurance		516			473			486			470			502			989			955
Unrealized gain (loss) on marketable equity securities		25			(5	)		(9	)		10			4			20			12
Gain (loss) on sale of mortgages		4			7			(11	)		246			–			11			–
Gain on non-marketable equity investments		243			–			300			–			987			243			987
Loss on disposal of premises and equipment		–			–			–			–			–			–			(6	)
Other income		95			–			187			74			–			95			–
Total non-interest income		3,411			2,759			3,254			3,141			3,834			6,170			6,508

NON-INTEREST EXPENSE:
Salaries and employees benefits		8,831			8,413			8,429			8,112			7,901			17,244			16,145
Occupancy		1,265			1,412			1,256			1,217			1,218			2,677			2,581
Furniture and equipment		491			487			505			483			483			978			967
Data processing		933			882			900			869			846			1,815			1,708
Software		645			659			642			612			566			1,304			1,265
Debit/ATM card processing expense		674			577			593			649			643			1,251			1,195
Professional fees		623			546			471			540			581			1,169			1,150
FDIC insurance		399			431			389			338			323			830			733
Advertising		443			429			310			271			339			872			688
Other		1,352			1,348			1,431			1,315			1,414			2,700			2,664
Total non-interest expense		15,656			15,184			14,926			14,406			14,314			30,840			29,096

INCOME BEFORE INCOME TAXES		6,012			2,967			4,363			2,522			4,284			8,979			8,072

INCOME TAX PROVISION		1,422			664			1,075			618			771			2,086			1,598
NET INCOME	$	4,590		$	2,303		$	3,288		$	1,904		$	3,513		$	6,893		$	6,474

Basic earnings per share	$	0.23		$	0.11		$	0.16		$	0.09		$	0.17		$	0.34		$	0.31
Weighted average shares outstanding		20,210,650			20,385,481			20,561,749			20,804,162			21,056,173			20,297,582			21,118,571
Diluted earnings per share	$	0.23		$	0.11		$	0.16		$	0.09		$	0.17		$	0.34		$	0.31
Weighted average diluted shares outstanding		20,312,881			20,514,098			20,701,276			20,933,833			21,163,762			20,413,006			21,217,543

Other Data:
Return on average assets (1)		0.69	%		0.35	%		0.49	%		0.29	%		0.55	%		0.52	%		0.51	%
Return on average equity (1)		7.76	%		3.94	%		5.48	%		3.19	%		6.03	%		5.87	%		5.53	%
Efficiency ratio		74.36	%		83.00	%		80.56	%		80.62	%		78.20	%		78.38	%		80.10	%
Adjusted efficiency ratio (2)		75.32	%		82.98	%		81.85	%		80.67	%		82.68	%		78.91	%		82.35	%
Net interest margin		2.80	%		2.49	%		2.41	%		2.40	%		2.42	%		2.64	%		2.50	%
Net interest margin, on a fully tax-equivalent basis		2.82	%		2.51	%		2.43	%		2.42	%		2.44	%		2.66	%		2.52	%
(1) Annualized.
(2) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gain on non-marketable equity investments, and loss on disposal of premises and equipment.

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) (Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Cash and cash equivalents	$	93,308		$	110,579		$	66,450		$	72,802		$	53,458
Securities available-for-sale, at fair value		178,785			167,800			160,704			155,889			135,089
Securities held to maturity, at amortized cost		197,671			201,557			205,036			213,266			217,632
Marketable equity securities, at fair value		444			414			397			252			233
Federal Home Loan Bank of Boston and other restricted stock – at cost		5,818			5,818			5,818			7,143			7,143

Loans		2,092,631			2,079,561			2,070,189			2,049,002			2,026,226
Allowance for credit losses		(19,733	)		(19,669	)		(19,529	)		(19,955	)		(19,444	)
Net loans		2,072,898			2,059,892			2,050,660			2,029,047			2,006,782

Bank-owned life insurance		78,045			77,529			77,056			76,570			76,100
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,250			1,344			1,438			1,531			1,625
Other assets		70,443			71,864			73,044			71,492			75,521
TOTAL ASSETS	$	2,711,149		$	2,709,284		$	2,653,090		$	2,640,479		$	2,586,070

Total deposits	$	2,330,113		$	2,328,593		$	2,262,647		$	2,224,206		$	2,171,809
Short-term borrowings		4,040			4,520			5,390			4,390			6,570
Long-term debt		98,000			98,000			98,000			128,277			128,277
Subordinated debt		19,771			19,761			19,751			19,741			19,731
Securities pending settlement		–			2,093			8,622			2,513			102
Other liabilities		19,797			18,641			22,770			20,697			23,104
TOTAL LIABILITIES		2,471,721			2,471,608			2,417,180			2,399,824			2,349,593

TOTAL SHAREHOLDERS’ EQUITY		239,428			237,676			235,910			240,655			236,477
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,711,149		$	2,709,284		$	2,653,090		$	2,640,479		$	2,586,070

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited)
	Three Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,
	2025		2025		2024		2024		2024
Shares outstanding at end of period	20,494,501		20,774,319		20,875,713		21,113,408		21,357,849

Operating results:
Net interest income	$	17,642	$	15,534	$	15,273	$	14,728	$	14,470
(Reversal of) provision for credit losses	(615)		142		(762)		941		(294)
Non-interest income	3,411		2,759		3,254		3,141		3,834
Non-interest expense	15,656		15,184		14,926		14,406		14,314
Income before income provision for income taxes	6,012		2,967		4,363		2,522		4,284
Income tax provision	1,422		664		1,075		618		771
Net income	4,590		2,303		3,288		1,904		3,513

Performance Ratios:
Net interest margin	2.80%		2.49%		2.41%		2.40%		2.42%
Net interest margin, on a fully tax-equivalent basis	2.82%		2.51%		2.43%		2.42%		2.44%
Interest rate spread	2.10%		1.74%		1.63%		1.60%		1.66%
Interest rate spread, on a fully tax-equivalent basis	2.12%		1.76%		1.65%		1.62%		1.67%
Return on average assets	0.69%		0.35%		0.49%		0.29%		0.55%
Return on average equity	7.76%		3.94%		5.48%		3.19%		6.03%
Efficiency ratio (GAAP)	74.36%		83.00%		80.56%		80.62%		78.20%
Adjusted efficiency ratio (non-GAAP) ⁽¹⁾	75.32%		82.98%		81.85%		80.67%		82.68%

Per Common Share Data:
Basic earnings per share	$	0.23	$	0.11	$	0.16	$	0.09	$	0.17
Earnings per diluted share	0.23		0.11		0.16		0.09		0.17
Cash dividend declared	0.07		0.07		0.07		0.07		0.07
Book value per share	11.68		11.44		11.30		11.40		11.07
Tangible book value per share (non-GAAP) ⁽²⁾	11.01		10.78		10.63		10.73		10.41

Asset Quality:
30-89 day delinquent loans	$	2,525	$	2,459	$	3,694	$	3,059	$	3,270
90 days or more delinquent loans	1,328		2,027		1,301		1,253		2,280
Total delinquent loans	3,853		4,486		4,995		4,312		5,550
Total delinquent loans as a percentage of total loans	0.18%		0.22%		0.24%		0.21%		0.27%
Nonaccrual loans	$	5,752	$	6,014	$	5,381	$	4,873	$	5,845
Nonaccrual loans as a percentage of total loans	0.27%		0.29%		0.26%		0.24%		0.29%
Nonaccrual assets as a percentage of total assets	0.21%		0.22%		0.20%		0.18%		0.23%
Allowance for credit losses as a percentage of nonaccrual loans	343.06%		327.05%		362.93%		409.50%		332.66%
Allowance for credit losses as a percentage of total loans	0.94%		0.95%		0.94%		0.97%		0.96%
Net loan (recoveries) charge-offs	$	(585)	$	29	$	(128)	$	98	$	10
Net loan (recoveries) charge-offs as a percentage of average loans	(0.03)%		0.00%		(0.01)%		0.00%		0.00%
(1) The adjusted efficiency ratio (non-GAAP) represents the ratio of operating expenses divided by the sum of net interest and dividend income and non-interest income, excluding realized and unrealized gains and losses on securities, gains on non-marketable equity investments, and loss on disposal of premises and equipment.
(2) Tangible book value per share (non-GAAP) represents the value of the Company’s tangible assets divided by its current outstanding shares.

The following table sets forth the information relating to our average balances and net interest income for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended
	June 30, 2025								March 31, 2025							June 30, 2024
	Average						Average Yield/		Average					Average Yield/		Average					Average Yield/
	Balance		Interest				Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾		Balance		Interest			Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,081,319		$	26,335		5.08	%	$	2,073,486	$	25,105		4.91	%	$	2,017,127	$	24,454		4.88	%
Securities(2)		375,074			2,588		2.77			365,371		2,422		2.69			354,850		2,141		2.43
Other investments		15,062			169		4.50			14,819		191		5.23			14,328		148		4.15
Short-term investments(3)		58,622			641		4.39			76,039		840		4.48			14,328		173		4.86
Total interest-earning assets		2,530,077			29,733		4.71			2,529,715		28,558		4.58			2,400,633		26,916		4.51
Total non-interest-earning assets		156,247								156,733							156,701
Total assets	$	2,686,324							$	2,686,448						$	2,557,334

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	165,329			424		1.03		$	140,960		250		0.72		$	131,449		253		0.77
Savings accounts		188,498			55		0.12			183,869		40		0.09			185,690		51		0.11
Money market accounts		687,621			3,600		2.10			704,215		3,968		2.29			622,062		2,930		1.89
Time deposit accounts		690,555			6,358		3.69			702,748		7,118		4.11			650,054		7,101		4.39
Total interest-bearing deposits		1,732,003			10,437		2.42			1,731,792		11,376		2.66			1,589,255		10,335		2.62
Borrowings		122,070			1,533		5.04			122,786		1,527		5.04			160,484		1,997		5.00
Interest-bearing liabilities		1,854,073			11,970		2.59			1,854,578		12,903		2.82			1,749,739		12,332		2.83
Non-interest-bearing deposits		572,833								569,638							548,781
Other non-interest-bearing liabilities		22,207								25,464							24,453
Total non-interest-bearing liabilities		595,040								595,102							573,234
Total liabilities		2,449,113								2,449,680							2,322,973
Total equity		237,211								236,768							234,361
Total liabilities and equity	$	2,686,324							$	2,686,448						$	2,557,334
Less: Tax-equivalent adjustment(2)					(121	)						(121	)						(114	)
Net interest and dividend income				$	17,642						$	15,534						$	14,470
Net interest rate spread(4)							2.10	%						1.74	%						1.66	%
Net interest rate spread, on a tax-equivalent basis(5)							2.12	%						1.76	%						1.67	%
Net interest margin(6)							2.80	%						2.49	%						2.42	%
Net interest margin, on a tax-equivalent basis(7)							2.82	%						2.51	%						2.44	%
Ratio of average interest-earning assets to average interest-bearing liabilities							136.46	%						136.40	%						137.20	%

The following tables set forth the information relating to our average balances and net interest income for the six months ended June 30, 2025 and 2024 and reflect the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Six Months Ended June 30,
		2025							2024
	Average Balance		Interest			Average Yield/ Cost⁽⁸⁾		Average Balance		Interest			Average Yield/ Cost⁽⁸⁾
	Average Balance		Interest			Average Yield/ Cost⁽⁸⁾		Average Balance		Interest			Average Yield/ Cost⁽⁸⁾
	(Dollars in thousands)
ASSETS:
Interest-earning assets
Loans(1)(2)	$	2,077,424	$	51,440		4.99	%	$	2,019,420	$	48,805		4.86	%
Securities(2)		370,249		5,010		2.73			357,171		4,255		2.40
Other investments		14,941		360		4.86			13,411		284		4.26
Short-term investments(3)		67,282		1,481		4.44			11,857		286		4.85
Total interest-earning assets		2,529,896		58,291		4.65			2,401,859		53,630		4.49
Total non-interest-earning assets		156,489							155,555
Total assets	$	2,686,385						$	2,557,414

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	153,212		674		0.89	%	$	133,504		488		0.74	%
Savings accounts		186,196		95		0.10			185,907		90		0.10
Money market accounts		695,872		7,569		2.19			624,164		5,517		1.78
Time deposit accounts		696,618		13,475		3.90			638,970		13,533		4.26
Total interest-bearing deposits		1,731,898		21,813		2.54			1,582,545		19,628		2.49
Short-term borrowings and long-term debt		122,426		3,060		5.04			160,643		3,962		4.96
Total interest-bearing liabilities		1,854,324		24,873		2.70			1,743,188		23,590		2.72
Non-interest-bearing deposits		571,245							553,246
Other non-interest-bearing liabilities		23,826							25,672
Total non-interest-bearing liabilities		595,071							578,918

Total liabilities		2,449,395							2,322,106
Total equity		236,990							235,308
Total liabilities and equity	$	2,686,385						$	2,557,414
Less: Tax-equivalent adjustment (2)				(242	)						(224	)
Net interest and dividend income			$	33,176						$	29,816
Net interest rate spread (4)						1.92	%						1.75	%
Net interest rate spread, on a tax-equivalent basis (5)						1.95	%						1.77	%
Net interest margin (6)						2.64	%						2.50	%
Net interest margin, on a tax-equivalent basis (7)						2.66	%						2.52	%
Ratio of average interest-earning assets to average interest-bearing liabilities						136.43	%						137.79	%

(1) Loans, including nonaccrual loans, are net of deferred loan origination costs and unadvanced funds.
(2) Loan and securities income are presented on a tax-equivalent basis using a tax rate of 21%. The tax-equivalent adjustment is deducted from tax-equivalent net interest and dividend income to agree to the amount reported on the consolidated statements of net income.
(3) Short-term investments include federal funds sold.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest rate spread, on a tax-equivalent basis, represents the difference between the tax-equivalent weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(6) Net interest margin represents net interest and dividend income as a percentage of average interest-earning assets.
(7) Net interest margin, on a tax-equivalent basis, represents tax-equivalent net interest and dividend income as a percentage of average interest-earning assets.
(8) Annualized.

Reconciliation of Non-GAAP to GAAP Financial Measures

The Company believes that certain non-GAAP financial measures provide information to investors that is useful in understanding its results of operations and financial condition. Because not all companies use the same calculation, this presentation may not be comparable to other similarly titled measures calculated by other companies. A reconciliation of these non-GAAP financial measures is provided below.

	For the quarter ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
	(Dollars in thousands, except per share data)

Loan interest (no tax adjustment)	$	26,214		$	24,984		$	25,183		$	25,134		$	24,340
Tax-equivalent adjustment		121			121			128			119			114
Loan interest (tax-equivalent basis)	$	26,335		$	25,105		$	25,311		$	25,253		$	24,454

Net interest income (no tax adjustment)	$	17,642		$	15,534		$	15,273		$	14,728		$	14,470
Tax equivalent adjustment		121			121			128			119			114
Net interest income (tax-equivalent basis)	$	17,763		$	15,655		$	15,401		$	14,847		$	14,584

Net interest income (no tax adjustment)	$	17,642		$	15,534		$	15,273		$	14,728		$	14,470
Less:
Prepayment penalties and fees		425			–			–			–			8
Adjusted net interest income (non-GAAP)	$	17,217		$	15,534		$	15,273		$	14,728		$	14,462

Average interest-earning assets	$	2,530,077		$	2,529,715		$	2,517,017		$	2,441,236		$	2,400,633
Net interest margin (no tax adjustment)		2.80	%		2.49	%		2.41	%		2.40	%		2.42	%
Net interest margin, tax-equivalent		2.82	%		2.51	%		2.43	%		2.42	%		2.44	%
Net interest margin, excluding prepayment penalties and fees (non-GAAP)		2.73	%		2.49	%		2.41	%		2.40	%		2.42	%

Book Value per Share (GAAP)	$	11.68		$	11.44		$	11.30		$	11.40		$	11.07
Non-GAAP adjustments:
Goodwill		(0.61	)		(0.60	)		(0.60	)		(0.59	)		(0.58	)
Core deposit intangible		(0.06	)		(0.06	)		(0.07	)		(0.08	)		(0.08	)
Tangible Book Value per Share (non-GAAP)	$	11.01		$	10.78		$	10.63		$	10.73		$	10.41

	For the quarter ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
	(Dollars in thousands)

Efficiency Ratio:
Non-interest Expense (GAAP)	$	15,656		$	15,184		$	14,926		$	14,406		$	14,314

Net Interest Income (GAAP)	$	17,642		$	15,534		$	15,273		$	14,728		$	14,470

Non-interest Income (GAAP)	$	3,411		$	2,759		$	3,254		$	3,141		$	3,834
Non-GAAP adjustments:
Unrealized (gains) losses on marketable equity securities		(25	)		5			9			(10	)		(4	)
Gain on non-marketable equity investments		(243	)		–			(300	)		–			(987	)
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	3,143		$	2,764		$	2,963		$	3,131		$	2,843
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	20,785		$	18,298		$	18,236		$	17,859		$	17,313

Efficiency Ratio (GAAP)		74.36	%		83.00	%		80.56	%		80.62	%		78.20	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		75.32	%		82.98	%		81.85	%		80.67	%		82.68	%

	For the six months ended
	6/30/2025	6/30/2024
	(Dollars in thousands)

Loan income (no tax adjustment)	$ 51,198	$ 48,581
Tax-equivalent adjustment	242	224
Loan income (tax-equivalent basis)	$ 51,440	$ 48,805

Net interest income (no tax adjustment)	$ 33,176	$ 29,816
Tax equivalent adjustment	242	224
Net interest income (tax-equivalent basis)	$ 33,418	$ 30,040

Net interest income (no tax adjustment)	$ 33,176	$ 29,816
Less:
Prepayment penalties and fees	425	8
Adjusted net interest income (non-GAAP)	$ 32,751	$ 29,808

Average interest-earning assets	$ 2,529,896	$ 2,401,859
Net interest margin (no tax adjustment)	2.64%	2.50%
Net interest margin, tax-equivalent	2.66%	2.52%
Net interest margin, excluding prepayment penalties and fees (non-GAAP)	2.61%	2.50%

Adjusted Efficiency Ratio:
Non-interest Expense (GAAP)	$ 30,840	$ 29,096

Net Interest Income (GAAP)	$ 33,176	$ 29,816

Non-interest Income (GAAP)	$ 6,170	$ 6,508
Non-GAAP adjustments:
Unrealized gains on marketable equity securities	(20)	(12)
Loss on disposal of premises and equipment, net	–	6
Gain on non-marketable equity investments	(243)	(987)
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$ 5,907	$ 5,515
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$ 39,083	$ 35,331

Efficiency Ratio (GAAP)	78.38%	80.10%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))	78.91%	82.35%

For further information contact:
James C. Hagan, President and CEO
Guida R. Sajdak, Executive Vice President and CFO
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911

The MIL Network –

July 23, 2025

MIL-OSI USA: Crapo Statement at Treasury, HHS Nominations Hearing

US Senate News:

Source: United States Senator for Idaho Mike Crapo
Washington, D.C.—U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) delivered the following remarks at a nomination hearing to consider Jonathan McKernan to be an Under Secretary of the Treasury and Alex Adams of Idaho to be Assistant Health and Human Services (HHS) Secretary for Family Support.
As prepared for delivery:
“Thank you to our nominees, Mr. McKernan and Dr. Adams, for being here today. Congratulations on your nominations and thank you both for your willingness to serve.
“Today, we will first hear from Jonathan McKernan who is nominated to serve as the Under Secretary for Domestic Finance at the Treasury Department.
“The Domestic Finance office develops policies and guidance for Treasury Department activities in areas involving financial institutions, federal debt finance, financial regulation and capital markets. Sensible guidance in these areas better ensures financial stability and the growth and resilience of our economy.
“Mr. McKernan has a demonstrated track record of support for sound and balanced regulation. As a member of the Board of Directors at the Federal Deposit Insurance Corporation (FDIC), Mr. McKernan opposed burdensome rulemakings, such as the Basel III Endgame Proposal, which would have hindered economic growth and reduced lending to households and businesses.
“He also served in senior advisory roles on the staff of the Senate Banking Committee, the Federal Housing Finance Agency (FHFA) and the Treasury Department.
“Mr. McKernan, I look forward to working with you, if confirmed, to bolster and protect our domestic financial system.
“We will also hear from Dr. Alex Adams–from Eagle, Idaho–who is nominated to serve as the Assistant Secretary for Family Support, which oversees the Administration for Children and Families (ACF) at the Department of Health and Human Services (HHS).
“ACF plays a vital role in supporting some of America’s most vulnerable populations, including foster care and adoption assistance, both of which have garnered bipartisan interest from this Committee. It is imperative that this agency is led by someone with a deep understanding of these complex issues, a commitment to sound fiscal management, and a proven track record of delivering results.
“Dr. Adams’ service as the Director of Idaho’s Department of Health and Welfare has prepared him to lead ACF. He has overseen a staff of nearly 3,000 individuals and an annual budget of $5.5 billion and delivered clear results for Idahoans.
“As Director, Dr. Adams placed a strong emphasis on child welfare, working with the Idaho State Legislature to enact laws to extend foster care to age 23, allow kin-specific licensing standards, and enhance time to permanency.
“Dr. Adams also has a strong record on budget and efficiency, having served as Governor Little’s budget and regulatory director. He has demonstrated a keen eye toward fiscal responsibility, reducing regulatory burden and maximizing the impact of taxpayer dollars. This experience will be invaluable as he oversees the varied programs under ACF’s purview.
“His nomination has also received letters of support from a broad range of different stakeholders, which I request to be entered into the record.
“Thank you again to our nominees for their time today.”

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Budd Joins Young, Colleagues to Urge End to Foreign Free-Riding Burdening American Patients & Calls for IP Negotiator Appointment

US Senate News:

Source: United States Senator Ted Budd (R-North Carolina)

Washington, D.C. — U.S. Senator Ted Budd (R-N.C.) joined Senator Todd Young (R-Ind.), and several of his Senate Republicans colleagues, in sending a letter to U.S. Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick urging the Trump Administration to use ongoing trade negotiations to eliminate foreign price controls that leave American patients footing the cost for pharmaceutical research and development.

“We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets,” wrote the senators. “These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.”

The letter also urges the Administration to designate a senior political official within the Office of the U.S. Trade Representative to lead trade discussions on pharmaceutical pricing in the near term, and to promptly nominate a qualified individual to fill the long-vacant Chief Innovation and Intellectual Property Negotiator role, who would ultimately assume leadership of this effort. Created by Congress in 2015, the position was intended to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.”

“Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term,” the senators wrote.

U.S. Senators Thom Tillis (R-N.C.), Tim Scott (R-S.C.), Roger Marshall (R-Kan.), Bill Cassidy (R-La.), Steve Daines (R-Mont.), Cynthia Lummis (R-Wyo.), Ashley Moody (R-Fla.), Chuck Grassley (R-Iowa), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), John Boozman (R-Ark.), Jim Banks (R-Ind.), Jon Husted (R-Ohio), Cindy Hyde-Smith (R-Miss.), Tim Sheehy (R-Mont.), and Lindsey Graham (R-S.C.) also joined in signing the letter.

Read the full letter text HERE and below:

Dear Secretary Lutnick and Ambassador Greer,

We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets. These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.

Executive Order 14297, issued on May 12, directed the U.S. Department of Commerce (Commerce) and the U.S. Trade Representative (USTR) to pursue the removal of policies and practices abroad that have “the effect of forcing American patients to pay for a disproportionate amount of global pharmaceutical research and development, including by suppressing the price of pharmaceutical products below fair market value in foreign countries.” Consistent with this directive, it is important that Commerce and USTR engage with U.S. trading partners to negotiate binding commitments to remove these market-distorting price controls.

Currently, dozens of countries—including those with longstanding pricing policies affecting U.S. pharmaceutical products—have expressed interest or are currently undergoing tariff negotiations. Now is the time for Commerce and USTR to clarify top priorities, capitalize on opportunities, and resolve unfair foreign government policies in support of American workers and patients.

Given the complexity of the issues and their importance to the American public, we urge the Administration to immediately designate a senior political official at USTR to lead the effort to secure and enforce pharmaceutical pricing commitments through trade negotiations and also to promptly nominate a qualified individual to fill the vacant position of Chief Innovation and Intellectual Property Negotiator. Congress created this important position in 2015 to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.” Once filled, we recommend this role—supported by a team within USTR—be charged with leading this effort.

Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term.

We look forward to working with you as you confront these longstanding and unfair price controls that leave Americans disproportionately funding global health care innovation. Eliminating these egregious practices could increase investment in medical research and development by billions of dollars and lower overall health care costs for Americans. In addition, encouraging foreign governments to appropriately value medicines developed and produced in the United States would significantly bolster U.S. exports and jobs. We appreciate your continued attention to this issue and stand ready to support efforts that promote fair and sustainable trade outcomes.

Sincerely,

/X/

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Budd Joins Young, Colleagues to Urge End to Foreign Free-Riding Burdening American Patients & Calls for IP Negotiator Appointment

US Senate News:

Source: United States Senator Ted Budd (R-North Carolina)

Washington, D.C. — U.S. Senator Ted Budd (R-N.C.) joined Senator Todd Young (R-Ind.), and several of his Senate Republicans colleagues, in sending a letter to U.S. Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick urging the Trump Administration to use ongoing trade negotiations to eliminate foreign price controls that leave American patients footing the cost for pharmaceutical research and development.

“We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets,” wrote the senators. “These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.”

The letter also urges the Administration to designate a senior political official within the Office of the U.S. Trade Representative to lead trade discussions on pharmaceutical pricing in the near term, and to promptly nominate a qualified individual to fill the long-vacant Chief Innovation and Intellectual Property Negotiator role, who would ultimately assume leadership of this effort. Created by Congress in 2015, the position was intended to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.”

“Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term,” the senators wrote.

U.S. Senators Thom Tillis (R-N.C.), Tim Scott (R-S.C.), Roger Marshall (R-Kan.), Bill Cassidy (R-La.), Steve Daines (R-Mont.), Cynthia Lummis (R-Wyo.), Ashley Moody (R-Fla.), Chuck Grassley (R-Iowa), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), John Boozman (R-Ark.), Jim Banks (R-Ind.), Jon Husted (R-Ohio), Cindy Hyde-Smith (R-Miss.), Tim Sheehy (R-Mont.), and Lindsey Graham (R-S.C.) also joined in signing the letter.

Read the full letter text HERE and below:

Dear Secretary Lutnick and Ambassador Greer,

We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets. These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.

Executive Order 14297, issued on May 12, directed the U.S. Department of Commerce (Commerce) and the U.S. Trade Representative (USTR) to pursue the removal of policies and practices abroad that have “the effect of forcing American patients to pay for a disproportionate amount of global pharmaceutical research and development, including by suppressing the price of pharmaceutical products below fair market value in foreign countries.” Consistent with this directive, it is important that Commerce and USTR engage with U.S. trading partners to negotiate binding commitments to remove these market-distorting price controls.

Currently, dozens of countries—including those with longstanding pricing policies affecting U.S. pharmaceutical products—have expressed interest or are currently undergoing tariff negotiations. Now is the time for Commerce and USTR to clarify top priorities, capitalize on opportunities, and resolve unfair foreign government policies in support of American workers and patients.

Given the complexity of the issues and their importance to the American public, we urge the Administration to immediately designate a senior political official at USTR to lead the effort to secure and enforce pharmaceutical pricing commitments through trade negotiations and also to promptly nominate a qualified individual to fill the vacant position of Chief Innovation and Intellectual Property Negotiator. Congress created this important position in 2015 to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.” Once filled, we recommend this role—supported by a team within USTR—be charged with leading this effort.

Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term.

We look forward to working with you as you confront these longstanding and unfair price controls that leave Americans disproportionately funding global health care innovation. Eliminating these egregious practices could increase investment in medical research and development by billions of dollars and lower overall health care costs for Americans. In addition, encouraging foreign governments to appropriately value medicines developed and produced in the United States would significantly bolster U.S. exports and jobs. We appreciate your continued attention to this issue and stand ready to support efforts that promote fair and sustainable trade outcomes.

Sincerely,

/X/

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Sens. Hagerty, Tim Scott, Lummis, Moreno Release Market Structure Discussion Draft, Issue Request for Information From Stakeholders

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
The discussion draft builds on the CLARITY Act, which passed the House of Representatives last week with strong bipartisan support
WASHINGTON—Today,United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, joined Senators Tim Scott (R-SC), Chairman of the Senate Banking Committee, Cythia Lummis (R-WY), Chairwoman of the Senate Banking Subcommittee on Digital Assets, and Bernie Moreno (R-OH), in releasing an initial discussion draft of digital asset market structure legislation covering issues under the Banking Committee’s jurisdiction. The discussion draft builds on the CLARITY Act, which passed the House of Representatives last week with strong bipartisan support. Along with the discussion draft, the Senators are issuing a Request for Information (RFI) for stakeholders to submit feedback on the draft and on a wide range of questions.
“For too long, outdated laws and regulatory uncertainty around digital asset market structure have hindered American innovation and left consumers without adequate protections,” said Senator Hagerty. “This discussion draft demonstrates a strong commitment to unlocking the full potential of the digital asset economy by delivering responsible legislation that reflects input from stakeholders, fosters innovation, establishes consistent guardrails, and ensures the United States remains a global leader in digital assets.”
“My colleagues and I in the House and Senate share the same goal: to provide clear rules of the road for digital assets that protect investors, foster innovation, and keep the future of digital finance anchored in America,” said Chairman Scott. “I’m grateful for the hard work of our House counterparts to craft smart, bipartisan legislation, and I look forward to building on their work here in the Senate. Working with President Trump, we can deliver a comprehensive, bipartisan regulatory framework for digital assets.”
“The time for regulatory uncertainty in the digital asset space has come to an end,” said Senator Lummis. “This discussion draft represents a thoughtful, balanced approach that will provide the clarity our innovators need while providing robust consumer protections. We cannot allow regulatory confusion to continue driving American innovation overseas. Market structure legislation will establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.”
“The GENIUS Act was a critical stride toward ensuring the United States is a leader in Digital Assets,” said Senator Moreno. “This draft represents the next step in putting a bipartisan regulatory framework on President Trump’s desk and I look forward to continuing our important work to encourage innovation, protect consumers, and strengthen national security and US dollar dominance.”
The discussion draft takes important steps to:
Define Ancillary Assets – The discussion draft clearly defines an “ancillary asset” to clarify which digital assets are not securities.
Create Disclosure Requirements – The discussion draft creates disclosure requirements that are tailored for offers, sales, or distributions of ancillary assets.
Promulgate New Rules – The discussion draft requires the Securities and Exchange Commission (SEC) to promulgate new rules:
Regulation DA: To exempt certain offers or sales of ancillary assets from SEC registration, including offers of sales that do not exceed $75 million in gross proceeds per year over four years.
Investment Contracts: To more clearly define what constitutes an investment contract.

Modernize Securities Regulations – The discussion draft directs the SEC to tailor existing requirements to digital asset activity, so that regulations are no longer outdated, unnecessary, or unduly burdensome in light of the unique technological characteristics of digital assets.
Prevent Illicit Finance – The discussion draft requires the creation of examination standards for digital assets and encourages private sector entities to partner with federal law enforcement, to detect and deter illicit finance.
Promote Responsible Banking Innovation – The discussion draft ensures financial holding companies can use a digital asset or distributed ledger system to perform, provide, or deliver any activity, function, product, or service that banks are otherwise authorized by law to perform, provide, or deliver.
Full text of the discussion draft can be found here.
In addition to the discussion draft, the Senators are calling on stakeholders to submit their feedback on a wide range of questions around:
Regulatory Clarity and Tailoring
Investor Protection
Trading Venues and Market Infrastructure
Custody
Illicit Finance
Banking
Innovation
Preemption
To participate in the Request for Information (RFI), please submit your feedback to MarketStructure_RFI@banking.senate.gov.

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Schatz, Banks Introduce Bipartisan Bill To Build More Affordable Housing, Address America’s Growing Housing Crisis

US Senate News:

Source: United States Senator for Hawaii Brian Schatz

WASHINGTON – U.S. Senators Brian Schatz (D-Hawai‘i) and Jim Banks (R-Ind.) today introduced the Build More Housing Near Transit Act. The bipartisan legislation continues Senator Schatz’s efforts to address America’s housing shortage by offering federal benefits and encouraging local governments to build more housing near transit-oriented urban and suburban spaces, where options are especially lacking.

“The clearest way out of our national housing shortage is by building more housing,” said Senator Schatz. “Our bipartisan bill incentivizes cities and towns to build housing when they expand or redevelop their public transit systems. This will help put more families in homes, grow local economies, and cut carbon pollution. It’s a win for everyone.”

“This bill makes it easier for communities to build homes for working families by cutting red tape and giving them the freedom to create strong, family-friendly neighborhoods near public transit,” said Senator Banks.

Specifically, the legislation directs the Secretary of Transportation to provide a scoring boost to the competitive grant applications of public transit projects that include regulatory reforms that legalize new housing near stations, including removing expensive parking mandates, streamlining approval for new housing, allowing houses on smaller lots, raising height limits, and other pro-housing policies.

Currently, 47 percent of renter households are cost-burdened, and lack of housing options in transit-friendly areas is a major contributor to this. In addition, transportation costs are often a household’s second-largest expenditure behind housing, meaning more housing in transit areas would have a two-fold benefit.

By offering easier access to transit centers, the Build More Housing Near Transit Act will connect more employees with jobs and boost economic output, as well as reduce greenhouse gas emissions through increased public transit ridership. It will also make federal transportation projects more efficient and ensure federal dollars are used most effectively.

“America is experiencing a severe housing shortage that affects every aspect of American lives and the economy,” said Mike Kingsella, CEO of Up for Growth Action. “The Build More Housing Near Transit Act addresses the critical link between transportation and housing and would create greater access to affordable commutes and abundant housing. We applaud the lead sponsors for introducing this bill, serving as an example of how the federal government can use its leverage to ensure the right types of housing are available in the places people want to live.”

“For decades, the federal government has funded mass transit projects in cities whose growth control laws do not allow people to live near and ride on transit. The Build More Housing Near Transit Act finally corrects this. It protects transit riders and the federal taxpayer from spending scarce transit capital on projects doomed by rigid zoning regulations to low housing growth and low future ridership, while uplifting projects in localities that welcome housing & transit ridership growth. This bill is the essential first step in restoring bipartisan confidence in America’s mass transit investments for taxpayers and transit riders alike,” said Alex Armlovich, Senior Housing Policy Analyst for the Niskanen Center.

The full text of the bill is available here.

MIL OSI USA News –

July 23, 2025

MIL-OSI Europe: Karl Nehammer appointed new Vice-President of the European Investment Bank

Source: European Investment Bank

Former Chancellor of Austria will join the EIB Management Committee.
Vice-President Nehammer will start on 1 September, succeeding Swedish Vice-President Thomas Ostros.

The European Investment Bank (EIB) is pleased to announce the appointment of Karl Nehammer as a new Vice-President and Member of its Management Committee, following a decision by the 27 EU Finance Ministers, representing the EIB’s shareholders, the EU Member States.

Mr. Nehammer, an Austrian national, has been nominated by Austria and is set to take up his duties on 1 September 2025, succeeding current Vice-President Thomas Östros.

Karl Nehammer joins the EIB with a wealth of experience from his distinguished career in Austrian politics. He served as the Federal Chancellor of Austria from 2021 to 2025. Prior to this, he was Minister of the Interior from 2020 to 2021, and he was a member of the National Council from 2017 to 2020 as well as Secretary-General of the People’s Party.

EIB Group President Nadia Calviño welcomed the appointment, stating, “I am pleased to welcome Karl Nehammer to the EIB Management Committee. His profound experience in European politics will be an important asset for our Group and for delivering on key EU policy goals.”

Upon his appointment, Karl Nehammer remarked, “I am thrilled to join the European Investment Bank, an institution vital to the economic well-being and strategic autonomy of the European Union. The EIB plays a key role in backing priority investment across Europe and worldwide, and I look forward to working with President Calviño, my fellow Management Committee members, EIB Group staff and stakeholders to advance the Bank’s critical mission”.

The EIB Group has operated in Austria since 1973 and since then the EIB has provided more than EUR 34 billion for public and private investment across the country. The last Austrian Vice-President of the EIB was Wilhelm Molterer who served from 2011 to 2015.

Background information

The EIB’s Management Committee is the Bank’s permanent collegiate executive body, composed of a President and eight Vice-Presidents. Its members are appointed by the EIB’s Board of Governors, which consists of the economy and finance ministers of the 28 EU Member States.

The Committee collectively oversees the day-to-day running of the EIB and is responsible for preparing and ensuring the implementation of the Board of Directors’ decisions, particularly concerning borrowing and lending operations.

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high -impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers.Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.

MIL OSI Europe News –

July 23, 2025

MIL-OSI USA: Lummis Releases Discussion Draft for Comprehensive Digital Asset Market Structure Legislation

US Senate News:

Source: United States Senator for Wyoming Cynthia Lummis

Washington, D.C. – U.S. Senator Cynthia Lummis (R-WY) joined Senate Banking Committee Chairman Tim Scott (R-SC) and U.S. Senators Bernie Moreno (R-OH) and Bill Hagerty (R-TN) in releasing a discussion draft of the Banking Committee provisions of comprehensive digital asset market structure legislation, building on principles developed in collaboration with Chairman Scott to establish a clear regulatory framework for the digital asset industry.

“The time for regulatory uncertainty in the digital asset space has come to an end,” said Lummis. “This discussion draft represents a thoughtful, balanced approach that will provide the clarity our innovators need while providing robust consumer protections. We cannot allow regulatory confusion to continue driving American innovation overseas. Market structure legislation will establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.”

The discussion draft incorporates key principles designed to:

Establish Clear Legal Definitions: Create statutory distinctions between digital asset securities and commodities, providing regulatory certainty and predictability for market participants
Allocate Regulatory Authority: Clearly delineates jurisdiction between Federal agencies, ensuring appropriate oversight without regulatory overlap or gaps
Modernize Federal Law: Updates securities regulations to account for the unique characteristics of digital assets and distributed ledger technology
Protect Consumers and Market Participants: Implements appropriate registration and risk management requirements for centralized digital asset intermediaries while preserving self-custody rights
Target Illicit Finance Measures: Include focused provisions to prevent money laundering and sanctions evasion while supporting innovation
Foster Responsible Innovation: Encourage federal regulators to provide clear guidance and utilize tools like no-action letters and regulatory sandboxes

The discussion draft recognizes the different risk profiles of centralized firms versus decentralized protocols and acknowledges that distributed ledger technology extends beyond financial applications. It also emphasizes that tokenization represents an evolution of financial infrastructure that enhances efficiency and transparency.

Senator Lummis and Chairman Scott are issuing a Request for Information (RFI) for stakeholders to submit feedback on the draft and on a wide range of questions. To participate in the RFI, please submit your feedback to MarketStructure_RFI@banking.senate.gov.

A copy of the discussion draft can be found here.

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Ranking Member Cherfilus-McCormick Releases Statement on Death of Saif Musallet

Source: United States House of Representatives – Congresswoman Sheila Cherfilus-McCormick (D-Florida 20th district))

WASHINGTON, D.C. – Today, Congresswoman Sheila Cherfilus-McCormick (D-FL), Ranking Member of the Subcommittee on the Middle East and North Africa, issued the following statement on the killing of Saif Musallet in the West Bank:

“I am heartbroken by the killing of Saif Musallet, a 20-year-old American from Tampa, by Israeli settlers in the West Bank. I call on the Israeli government to fully investigate this incident and combat the increasing settler violence in the West Bank.

“Since the Hamas attacks on October 7th, I have warned repeatedly about the dangers of escalating violence against Palestinian civilians by Israeli settlers. Acts of violence and terror, whether by Hamas or by settlers, are never justified and only push peace further out of reach.

“My thoughts are with Saif’s family as we continue to push for justice, security, and a peaceful future for all.”

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MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Ranking Member Cherfilus-McCormick Releases Statement on Death of Saif Musallet

Source: United States House of Representatives – Congresswoman Sheila Cherfilus-McCormick (D-Florida 20th district))

WASHINGTON, D.C. – Today, Congresswoman Sheila Cherfilus-McCormick (D-FL), Ranking Member of the Subcommittee on the Middle East and North Africa, issued the following statement on the killing of Saif Musallet in the West Bank:

“I am heartbroken by the killing of Saif Musallet, a 20-year-old American from Tampa, by Israeli settlers in the West Bank. I call on the Israeli government to fully investigate this incident and combat the increasing settler violence in the West Bank.

“Since the Hamas attacks on October 7th, I have warned repeatedly about the dangers of escalating violence against Palestinian civilians by Israeli settlers. Acts of violence and terror, whether by Hamas or by settlers, are never justified and only push peace further out of reach.

“My thoughts are with Saif’s family as we continue to push for justice, security, and a peaceful future for all.”

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MIL OSI USA News –

July 23, 2025

MIL-OSI Canada: Government of Canada sells Rimouski Armoury for student housing

Source: Government of Canada News (2)

July 22, 2025 – Gatineau, Quebec

Everyone deserves a place to call home. However, Canada’s housing crisis is making it increasingly difficult for many people across the country to access housing. Post-secondary students are no exception: in many regions, they are struggling to find affordable housing that meets their needs.

As part of its plan to build more homes, the Government of Canada is identifying federal properties that have the potential for housing and is making them available through the Canada Public Land Bank.

Today, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement and the Honourable David J. McGuinty, Minister of National Defence, announced that the Rimouski Armoury in Rimouski, Quebec, has been sold to Immeubles Must Urbain Inc., which is planning to build student housing while also preserving the heritage of the existing building.

Public Services and Procurement Canada added the former National Defence property to the Canada Public Land Bank in August 2024, as part of the Public Lands for Homes Plan, an ambitious, whole-of-government approach to addressing the housing crisis by building more homes and making it easier to rent or own a home.

Through the Canada Public Land Bank, we are providing access to federal properties in a transparent way to all stakeholders: large developers, small companies, Indigenous communities and organizations, non-profit organizations, academic institutions, provinces, territories and municipalities, and Canadian citizens. This is allowing us to accelerate the federal government’s established disposal process.

To date, we have received hundreds of initial inquiries for properties currently listed in the land bank. These inquiries span properties located across most provinces and territories.

MIL OSI Canada News –

July 23, 2025

MIL-OSI Africa: African Development Bank’s Sustainable Energy Fund for Africa (SEFA) supports electric cooking expansion across three African nations

Source: APO

The Sustainable Energy Fund for Africa (SEFA), managed by the African Development Bank (AfDB) (www.AfDB.org), is tackling charcoal dependence in Kenya, Uganda, and Zambia with a $4 million reimbursable grant. This grant will fund the Burn Electric Cooking Expansion Program (BEEP), deploying 115,000 Burn ECOA Electric Induction Cookers to provide clean cooking solutions for low-income, grid-connected households currently relying on charcoal.

Burn, a Kenya-based clean cookstove company and carbon developer with operations in over 10 African countries, will implement BEEP. This program makes clean cooking appliances more affordable and accessible by prefinancing induction cookers and recovering costs through carbon credit sales in the voluntary market. This innovative model combines carbon-backed subsidies with pay-as-you-go payment plans, significantly lowering upfront costs for end-users.

Capitalised through a Special Purpose Vehicle (SPV), the Program is funded by a $5 million senior loan from the Spark+ Africa Fund, a $4 million reimbursable grant from SEFA, and $1 million in equity from Burn Manufacturing Company. This SPV will partner with Burn to manage sales, distribution, and servicing of the cookers. The appliances will generate carbon credits, owned by the SPV, with revenues shared among investors.

Dr. Daniel Schroth, Director for Renewable Energy and Energy Efficiency at the African Development Bank Group, stated, “This marks the Bank’s first carbon finance transaction of its kind, with SEFA playing a critical role in mitigating carbon market risks and enhancing the Program’s financial sustainability.”

The program aligns with SEFA’s thematic area on Energy Efficiency, catalysing private sector investments in efficient appliances and promoting scale-up of clean cooking technologies. It also supports the Mission 300 Initiative and the Bank’s New Deal on Energy for Africa, which aim to deliver universal energy access through low-carbon solutions.

“We are honoured to receive this catalytic investment from the African Development Bank’s Sustainable Energy Fund for Africa—their first-ever investment in carbon projects focused on electric cooking. This milestone enables BURN to rapidly scale our IoT-enabled induction stove across Kenya, Uganda, and Zambia, providing low-income households with a zero-emission, digitally monitored alternative to charcoal and wood,” said Peter Scott, Founder and CEO, BURN. “By integrating cutting-edge technology, carbon financing, and mobile-enabled Pay-As-You-Cook models, we are demonstrating that electric cooking can be clean, affordable, and scalable across the continent.”

In addition to environmental and health benefits, the program will stimulate job creation and fortify local supply chains within the three target countries, paving the way for a cleaner, more prosperous future for communities across Kenya, Uganda, and Zambia.

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

Media contact:
Alexis Adélé
Communications and External Relations Department
media@afdb.org

ABOUT SEFA:
SEFA is a multi-donor Special Fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency. SEFA offers technical assistance and concessional finance instruments to remove market barriers, build a more robust pipeline of projects and improve the risk-return profile of individual investments. The Fund’s overarching goal is to contribute to universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the New Deal on Energy for Africa and the M300.

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

Media files

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MIL OSI Africa –

July 23, 2025

MIL-OSI USA: Zinke, Sheehy, Moore, Banks Introduce Legislation to Implement Fees on Foreign Tourists to Rebuild National Parks

Source:

Washington, D.C. — Today, Western Montana Congressman and former Secretary of the Interior Ryan Zinke (MT-01), with Senator Tim Sheehy (R-MT), Representative Riley Moore (WV-02), and Senator Jim Banks (R-IN) introduced the bicameral Protecting America’s Treasures by Raising Inflow from Overseas Tourists in Parks Act (PATRIOT Parks Act), which would authorize a surcharge for most foreign tourists visiting national parks. If implemented, the bill would ensure foreign visitors contribute their fair share to the upkeep and preservation of America’s most treasured places.

“National Parks are Americas best idea and maintaining that legacy for future generations means making smart investments in the management of the parks,” said 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.”

“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, said Moore. “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.”

“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 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.”

The National Park Service has $23 billion deferred maintenance infrastructure backlog. NPS relies on appropriated funds from tax dollars, Great American Outdoors Act funds from energy leasing, and entrance fees to address infrastructure needs. Every park will benefit from this program regardless of if they collect fees or not. By law, under the current formula for entrance fees, 80% of the fees collected at a park stay in the park where they are collected. The remaining 20% of entrance fees collected is distributed to non-fee collecting parks to improve infrastructure and visitor experience. The foreign visitors surcharge will use the same formula ensuring all parks benefit from this funding.

According to a report by Property and Environment Research Center (PERC), a surcharge of just $40 per foreign visitor would raise $528 million for our park system.

“People travel from around the world to experience America’s national parks, and now they can help conserve them too,” said PERC CEO Brian Yablonski. “A surcharge on international visitors is a common practice globally and offers a smart, reliable way to fund better trails, cleaner campgrounds, modernized water systems, and desperately needed restoration work in our parks. We appreciate Rep. Zinke’s support for strengthening America’s national parks.”

Virtually all other countries do this already. Foreign tourists visiting the Galapagos National Park in Ecuador pay a $200 surcharge, South Africa charges as much as 500% more for foreign visitors, many European Union nations charge non-EU citizens surcharges at museums and cultural sites.

The foreign visitor would only apply to National Parks units that already collect entrance fees. If a park does not currently collect an entrance fee, the surcharge will not apply. Canadian citizens visiting Glacier National Park would be exempt from the surcharge in recognition of our joint stewardship of Waterton-Glacier International Peace Park. Fee-collecting monuments in Washington, D.C., are also exempted.

The bill codifies an executive order signed by President Trump directing the Department of the Interior and Department of Agriculture to implement a foreign visitor surcharge to support public lands and rural communities.

Read the full bill text here.

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MIL OSI USA News –

July 23, 2025

MIL-OSI Banking: Microsoft Sentinel data lake: Unify signals, cut costs, and power agentic AI

Source: Microsoft

Headline: Microsoft Sentinel data lake: Unify signals, cut costs, and power agentic AI

You can’t protect what you can’t see. Security operations teams have long been faced with the challenge of managing massive, fast-growing datasets, and the cost of scaling traditional data management tools to handle these data volumes has become unsustainable. We’re evolving our industry-leading Security Incidents and Event Management solution (SIEM), Microsoft Sentinel, to include a modern, cost-effective data lake. By unifying all your security data, Microsoft Sentinel data lake, now in public preview, accelerates agentic AI adoption and drives unparalleled visibility, empowering teams to detect and respond faster. With Sentinel data lake, you’re no longer forced to choose between retaining critical data and staying within budget.

Learn more about Microsoft Sentinel

Microsoft Sentinel started on this journey five years ago with the introduction of the first cloud-native SIEM to simplify data onboarding and bring the power of AI to threat detection.¹ Since then, we’ve integrated Sentinel with Microsoft Defender and enriched it with real-time threat intelligence, guided recommendations, and automated response capabilities. Microsoft Sentinel data lake is the next step in that journey—built to help security leaders break through the limitations of traditional SIEMs by putting security data at the center of the security operations center (SOC), at scale, and without compromise. Now, you can continue your own journey and onboard Microsoft Sentinel data lake.

Breaking down data silos for better security

WHAT is SIEM?

Learn more

With security log volumes growing fast, teams are forced into making painful tradeoffs: reduce logging by risking blind spots, shorten retention by compromising forensic depth, or absorb unsustainable costs when aiming to manage all their security data within a SIEM. This is the paradox of modern security: the more data you have, the harder it becomes to use it effectively. And without unified, long-term visibility, even the most advanced AI models can’t deliver to their full potential. Siloed data means missed cyberthreats, delayed investigations, and underutilized tools.

Microsoft Sentinel data lake was purpose-built to solve this challenge and provides the foundation for agentic defense. It brings together all your security data, from Microsoft and third-party sources, into a single, cost-effective data lake, with more than 350 native connectors. With data retention priced at less than 15% of traditional analytics logs, it enables seamless enrichment with threat intelligence and AI-powered detection across your entire environment. This isn’t just a new product, it’s a new architecture for security operations—one that empowers security teams to hunt cyberthreats across months or years, reconstruct incidents with precision, and unlock the full value of AI.

Microsoft’s vision for Sentinel data lake reflects what matters most in cybersecurity: clarity, scale, and real-world impact. With more than 1,200 Sentinel deployments worldwide, BlueVoyant has seen the need firsthand. Large scale data challenges are now the norm. Sentinel data lake marks a natural evolution of the SIEM and SOAR model, one that critically supports modern analytics, data science, and flexible ingestion strategy. It is a critical step forward for customers looking to modernize their security operations.

—Milan Patel, Chief Revenue Officer at BlueVoyant

To further help defenders get the most out of their data, we’re democratizing threat intelligence by converging Microsoft Defender Threat Intelligence (MDTI) capabilities into Defender XDR and Sentinel at no additional cost; this means that security teams will no longer need to buy a separate SKU to access these powerful features. MDTI value will be merged in Sentinel and Defender XDR over time, starting in October 2025 when all Microsoft first-party threat reports, including intel profiles and indicators of compromise (IoCs), will be available in Defender XDR. Additionally, IoCs will be incorporated into Sentinel case management so customers can collaborate and share threat intelligence across teams within their organization. The remaining features will become available over time.

With this change, security teams can easily tap into a powerful repository of frontline threat intelligence, sourced from 84 trillion daily signals and backed by the expertise of more than 10,000 Microsoft security specialists. Read more about how this added value in Sentinel and Defender will greatly enhance capabilities with real-time, high-quality threat data.

Empowering security teams to do more

The promise of AI in cybersecurity has always been bold: faster detection, smarter response, and the ability to outpace even the most sophisticated cyberattackers. But most security teams are held back by fragmented data and incomplete context. Centralizing your data in a threat intel-enriched data lake eliminates silos and ensures AI models like Security Copilot have the full context they need to detect subtle cyberattack patterns, correlate signals across time and space, and surface high-fidelity alerts. This creates the foundation for the future of agentic defense where AI doesn’t just assist, it acts. This shift now empowers security teams to:

What are indicators of compromise?

Learn more

Uncover cyberattacker behavior going back years without worrying as much about storage limits
Address pre-breach and post-breach use cases by correlating asset, activity, and TI data
Utilize real-time threat intel to triage faster and retroactively hunt over historical data
Trigger detections automatically based on the latest IoCs and tactics, techniques, and procedures (TTPs)
Use Kusto Query Language (KQL) and Apache Spark to query across extended time horizons and detect subtle cyberattack patterns
Support regulatory and compliance needs with scalable, cost-efficient data retention

These are the jobs that matter most in modern security operations and now they’re easier, faster, and more cost-effective to execute.

For cyber teams, the massive proliferation of data can misdirect focus or delay responses to genuine [cyber]threats. Microsoft Sentinel data lake can be a valuable tool for data centralization and visibility and for historical analysis across large volumes of datasets. Together with Microsoft, Accenture can help our clients leverage the data lake to extend the power of Microsoft Sentinel to supercharge attack detection and proactive remediation.

—Rex Thexton, Chief Technology Officer, Accenture Security

Simplifying operations while being AI-ready

Microsoft Sentinel data lake simplifies data management with a flexible, centralized experience in the Microsoft Defender portal—bringing your security data together alongside the tools your defenders use to prevent, detect, and respond to cyberthreats every day. Analysts can move seamlessly between the analytics and data lake tiers, enabling real-time response and deep investigation from a single interface. While doing that all your data stored in the analytics tier is automatically available in the data lake tier, and because it’s built on open formats, organizations can tailor analytics workflows, build custom machine learning (ML) models, and leverage familiar tools, over a single copy of their security data, to extend the value of the data lake to meet their unique needs. Whether you’re consolidating tools, scaling your SOC, or preparing for AI-powered defense, Sentinel data lake adapts to your security strategy and journey.

Sentinel data lake enables SOC teams into the next era of security operations. Being able to ensure coverage of your security estate—across all security data sources and vast time horizons—enables security teams to proactively detect latent cyberattacks, detect emerging cyberthreats with AI-powered models, reconstruct cyberattack timelines in forensic detail, and retroactively uncover indicators of compromise that might otherwise go unnoticed.

The [cyber]attack surface is expanding with every application and AI application deployed across hybrid cloud environments, and AI-powered attacks are evolving just as fast. What many organizations still lack isn’t just better tools—it’s real-time visibility of their IT estate, their configurations and business context. To understand their full exposure, organizations need the right asset intelligence and a shared industry effort. The new Microsoft Sentinel data lake represents a valuable step in that direction; IBM is committed to working across the ecosystem to help solve that challenge.

—Srini Tummalapenta, IBM Distinguished Engineer, Chief Technology Officer for IBM Consulting Cybersecurity Services

What is extended detection and response?

Learn more

This launch marks more than a product evolution enabling security operations teams to respond faster and with maximum visibility. Microsoft Sentinel is continuing to push the boundaries with a scalable architecture that combines SIEM, extended detection and response (XDR), and threat intelligence into a single, integrated experience. Sentinel data lake is the foundation of this evolution, enabling security teams to reason over more data, more intelligently, and more affordably than ever before.

Get started today

Microsoft Sentinel data lake is now in preview. Join us as we redefine what’s possible in security operations:

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

¹Announcing new cloud-based technology to empower cyber defenders, Official Microsoft Blog. Ann Johnson. Feb 28, 2019.

MIL OSI Global Banks –

July 23, 2025

MIL-OSI United Nations: Supercharging Clean Energy Will Repair Humankind’s Relationship with Climate, Fuel Economic Growth, Secretary-General Says, Noting $2 Trillion Invested in 2024

Source: United Nations General Assembly and Security Council

Following is UN Secretary-General António Guterres’ address on climate action “A Moment of Opportunity: Supercharging the Clean Energy Age”, in New York today:

The headlines are dominated by a world in trouble. By conflict and climate chaos. By rising human suffering. By growing geopolitical divides. But amidst the turmoil, another story is being written. And its implications will be profound.

Throughout history, energy has shaped the destiny of humankind — from mastering fire to harnessing steam to splitting the atom. Now, we are on the cusp of a new era. Fossil fuels are running out of road. The sun is rising on a clean energy age.

Just follow the money. Two trillion dollars went into clean energy last year — that’s $800 billion more than fossil fuels and up almost 70 per cent in 10 years. And new data released today from the International Renewable Energy Agency shows that solar — not so long ago four times the cost of fossil fuels — is now 41 per cent cheaper. Offshore wind — 53 per cent. And over 90 per cent of new renewables worldwide produced electricity for less than the cheapest new fossil fuel alternative.

This is not just a shift in power. This is a shift in possibility. Yes, in repairing our relationship with the climate. Already, the carbon emissions saved by solar and wind globally are almost equivalent to what the whole European Union produces in a year.

But this transformation is fundamentally about energy security and people’s security. It’s about smart economics. Decent jobs, public health, advancing the Sustainable Development Goals. And delivering clean and affordable energy to everyone, everywhere.

Today, we are releasing a special report with the support of UN agencies and partners — the International Energy Agency, the International Monetary Fund (IMF), International Renewable Energy Agency, the Organisation for Economic Cooperation and Development (OECD) and the World Bank.

The report shows how far we have come in the decade since the Paris Agreement sparked a clean energy revolution. And it highlights the vast benefits — and actions needed — to accelerate a just transition globally.

Renewables already nearly match fossil fuels in global installed power capacity. And that’s just the beginning. Last year, almost all the new power capacity built came from renewables. And every continent on Earth added more renewables capacity than fossil fuels. The clean energy future is no longer a promise. It’s a fact. No government. No industry. No special interest can stop it.

Of course, the fossil fuel lobby of some fossil fuel companies will try — and we know the lengths to which they will go. But I have never been more confident that they will fail — because we have passed the point of no return.

For three powerful reasons. First, market economics. For decades, emissions and economic growth rose together. No more. In many advanced economies, emissions have peaked, but growth continues.

In 2023 alone, clean energy sectors drove 10 per cent of global gross domestic product (GDP) growth. In India, 5 per cent. The United States, 6 per cent. China — a leader in the energy transition — 20 per cent. And in the European Union, nearly 33 per cent. And clean energy sector jobs now outnumber fossil fuel jobs — employing almost 35 million people worldwide.

Even Texas — the heart of the American fossil fuel industry — now leads the United States in renewables. Why? Because it makes economic sense.

And yet fossil fuels still enjoy a 9-to-1 advantage in consumption subsidies globally — a clear market distortion. Add to that the unaccounted costs of climate damages on people and planet — and the distortion is even greater.

Countries that cling to fossil fuels are not protecting their economies — they are sabotaging them. Driving up costs. Undermining competitiveness. Locking in stranded assets. And missing the greatest economic opportunity of the twenty-first century.

Second — renewables are here to stay because they are the foundation of energy security and sovereignty. Let’s be clear: The greatest threat to energy security today is in fossil fuels. They leave economies and people at the mercy of price shocks, supply disruptions and geopolitical turmoil. Just look at Russia’s invasion of Ukraine. A war in Europe led to a global energy crisis. Oil and gas prices soared. Electricity and food bills followed. In 2022 average households around the world saw energy costs jump 20 per cent.

Modern and competitive economies need stable, affordable energy. Renewables offer both. There are no price spikes for sunlight. No embargoes on wind. Renewables can put power — literally and figuratively — in the hands of people and governments. And almost every nation has enough sun, wind, or water to become energy self-sufficient. Renewables mean real energy security. Real energy sovereignty. And real freedom from fossil-fuel volatility.

The third and final reason why there is no going back on renewables: Easy access. You can’t build a coal plant in someone’s backyard. But you can deliver solar panels to the most remote village on Earth. Solar and wind can be deployed faster, cheaper and more flexibly than fossil fuels ever could. And while nuclear will be part of the global energy mix, it can never fill the access gaps.

All of this is a game changer for the hundreds of millions of people still living without electricity — most of them in Africa, a continent bursting with renewable potential. By 2040, Africa could generate 10 times more electricity than it needs — entirely from renewables.

We are already seeing small-scale and off-grid renewable technologies lighting homes, and powering schools and businesses in remote areas. And in places like Pakistan for example, people power is fuelling a solar surge — consumers are driving the clean energy boom.

The energy transition is unstoppable. But the transition is not yet fast enough or fair enough. OECD countries and China account for 80 per cent of renewable power capacity installed worldwide. Brazil and India make up nearly 10 per cent. Africa — just 1.5 per cent.

Meanwhile, the climate crisis is laying waste to lives and livelihoods. Climate disasters in small island States have wiped out over 100 per cent of GDP. In the United States, they are pushing insurance premiums through the roof.

And the 1.5-degree limit is in unprecedented peril. To keep it within reach, we must drastically speed up the reduction of emissions — and the reach of the clean energy transition. With manufacturing capacity racing, prices plummeting, and COP30 [Thirtieth Session of the Conference of the Parties to the United Nations Framework Convention on Climate Change] fast approaching… This is our moment of opportunity. We must seize it. We can do so by taking action in six opportunity areas.

First — by using new national climate plans to go all-out on the energy transition. Too often, governments send mixed messages: Bold renewable targets on one day. New fossil fuel subsidies and expansions the next.

The next national climate plans, or NDCs, are due in a matter of months. They must bring clarity and certainty. Group of Twenty (G20) countries must lead. They produce 80 per cent of global emissions. The principle of common but differentiated responsibilities must apply but every country must do more. Ahead of COP30 in Brazil this November, they must submit new plans.

I invite leaders to present their new NDCs at an event I will host in September, during General Assembly High-level week. These must: cover all emissions, across the entire economy; align with the 1.5-degree limit; integrate energy, climate and sustainable development priorities into one coherent vision; and deliver on global promises to double energy efficiency and triple renewables capacity by 2030, and to accelerate the transition away from fossil fuels. These plans must be backed by long-term road maps for a just transition to net-zero energy systems — in line with global net-zero by 2050.

And they must be underpinned by policies that show that the clean energy future is not just inevitable — but investable. Policies that create clear regulations and a pipeline of projects. That enhance public-private partnerships — unlocking capital and innovation. That put a meaningful price on carbon. And that end subsidies and international public finance for fossil fuels — as promised.

Second, this is our moment of opportunity to build the energy systems of the twenty-first century. The technology is moving ahead. In just 15 years, the cost of battery storage systems for electricity grids has dropped over 90 per cent.

But here’s the problem. Investments in the right infrastructure are not keeping up. For every dollar invested in renewable power, just 60 cents go to grids and storage. That ratio should be one-to-one.

We are building renewable power — but not connecting it fast enough. There’s three times more renewable energy waiting to be plugged into grids than was added last year. And fossil fuels still dominate the global total energy mix.

We must act now and invest in the backbone of a clean energy future: In modern, flexible and digital grids — including regional integration. In a massive scale-up of energy storage. In charging networks — to power the electric vehicle revolution.

On the other hand, we need energy efficiency but also electrification — across buildings, transport and industry. This is how we unlock the full promise of renewables — and build energy systems that are clean, secure and fit for the future.

Third, this is our moment of opportunity to meet the world’s surging energy demand sustainably. More people are plugging in. More cities are heating up — with soaring demand for cooling. And more technologies — from AI to digital finance — are devouring electricity. Governments must aim to meet all new electricity demand with renewables.

AI can boost efficiency, innovation and resilience in energy systems. And we must take profit in it. But it is also energy hungry. A typical AI data centre eats up as much electricity as 100,000 homes. The largest ones will soon use 20 times that. By 2030, data centres could consume as much electricity as all of Japan does today.

This is not sustainable — unless we make it so. And the technology sector must be out front. Today I call on every major tech firm to power all data centres with 100 per cent renewables by 2030.

And — along with other industries — they must use water sustainably in cooling systems. The future is being built in the cloud. It must be powered by the sun, the wind and the promise of a better world.

Fourth, this is the moment of opportunity for a just energy transition. The clean energy that we must deliver must also deliver equity, dignity and opportunity for all.

That means governments leading a just transition. With support, education and training — for fossil fuel workers, young people, women, Indigenous Peoples and others — so that they can thrive in the new energy economy. With stronger social protection — so no one is left behind. And with international cooperation to help low-income countries that are highly-dependent on fossil fuels and struggling to make the shift.

But justice doesn’t stop here. The critical minerals that power the clean energy revolution are often found in countries that have long been exploited. And today, we see history repeating. Communities mistreated. Rights trampled. Environments trashed. Nations stuck at the bottom of value chains — while others reap rewards. And extractive models digging deeper holes of inequality and harm. This must end.

Developing countries can play a major role in diversifying sources of supply. The UN Panel on Critical Energy Transition Minerals has shown the way forward — with a path grounded in human rights, justice and equity.

Today, I call on governments, businesses and civil society to work with us to deliver its recommendations. Let’s build a future that is not only green — but just. Not only fast — but fair. Not only transformative — but inclusive.

Fifth, we have a moment of opportunity to use trade and investment to supercharge the energy transition. Clean energy needs more than ambition. It needs access — to technologies, materials and manufacturing.

But these are concentrated in just a few countries. And global trade is fragmenting.

Trade policy must support climate policy. Countries committed to the new energy era must come together to ensure that trade and investment drive it forward. By building diverse, secure and resilient supply chains. By cutting tariffs on clean energy goods. By unlocking investment and trade — including through South-South cooperation. And by modernizing outdated investment treaties — starting with Investor-State Dispute Settlement provisions.

Today, fossil fuel interests are weaponizing these provisions to delay the transition, particularly in several developing countries. Reform is urgent. The race for the new must not be a race for the few. It must be a relay — shared, inclusive and resilient. Let’s make trade a tool for transformation.

Sixth and finally, this is our moment of opportunity to unleash the full force of finance — driving investment to markets with massive potential. Despite soaring demand and vast renewables potential — developing countries are being locked out of the energy transition.

Africa is home to 60 per cent of the world’s best solar resources. But it received just 2 per cent of global clean energy investment last year. Zoom out, and the picture is just as stark.

In the last decade, only 1 in every 5 clean energy dollars went to emerging and developing countries outside China. To keep the 1.5-degree limit alive — and deliver universal energy access – annual clean energy investment in those countries must rise more than fivefold by 2030.

That demands bold national policies. And concrete international action to: Reform the global financial architecture. Drastically increase the lending capacity of multilateral development banks — making them bigger, bolder and better able to leverage massive amounts of private finance at reasonable costs. And take effective action on debt relief — and scale up proven tools like debt for climate swaps.

Today, developing countries pay outlandish sums for both debt and equity financing — in part because of outdated risk models, bias and broken assumptions that boost the cost of capital. Credit ratings agencies and investors must modernize.

We need a new approach to risk that reflects: the promise of clean energy; the rising cost of climate chaos; and the danger of stranded fossil fuel assets. I urge parties to unite to solve the complex challenges facing some developing countries in the energy transition — such as early retirement of coal plants.

The fossil fuel age is flailing and failing. We are in the dawn of a new energy era. An era where cheap, clean, abundant energy powers a world rich in economic opportunity. Where nations have the security of energy autonomy. And the gift of power is a gift for all.

That world is within reach. But it won’t happen on its own. Not fast enough. Not fair enough. It is up to us. We have the tools to power the future for humanity. Let’s make the most of them. This is our moment of opportunity.

MIL OSI United Nations News –

July 23, 2025

MIL-OSI Africa: Dr. Rania Al-Mashat Discusses with World Bank Regional Director Advancing Multilateral Cooperation to Enhance Economic Development in Egypt

Source: APO

.

H.E. Dr. Rania Al-Mashat, Minister of Planning, Economic Development, and International Cooperation, held a meeting with Mr. Stephane Guimbert, Regional Director of the World Bank for Egypt, Yemen, and Djibouti, to discuss avenues to strengthen joint cooperation to achieve economic development in Egypt.

The Minister of Planning, Economic Development and International Cooperation discussed with the World Bank Regional Director the joint efforts to enhance economic development by leveraging the World Bank’s international expertise and capabilities, emphasizing the importance of the partnership with the World Bank Group as a knowledge partner to the Egyptian government. Where joint work is underway to develop a comprehensive implementation plan to achieve economic development in cooperation with ministries and national entities, aiming to support macroeconomic stability, provide development financing, promote industrial development and trade, mobilize foreign direct investment (FDI), and increase investment in human capital.

H.E. also highlighted the Ministry’s efforts to implement the national narrative for economic development, which includes several pillars such as the preparation of the National Strategy for Industrial Development, which aims to increase exports, and enhance the value-added of manufacturing industries, and expand the contribution of the green economy to the GDP, as well as on enhancing integration and coherence between the FDI strategy and industrial development, supporting the labor market strategy focused on skills, and promote investment in human capital. She pointed out that this document comes within the framework of the effort to formulate a unified development discourse that reflects the state’s priorities, enhances the consistency of macroeconomic policies, and serves as a common reference for the government, international institutions, and development partners.

The meeting also discussed updates regarding the World Bank’s portfolio, including the Universal Health Insurance Project, the Sustainable Rural Sanitation Services Program, and the Takaful and Karama Program. Discussions also covered the latest developments in the Upper Egypt Local Development Program and the Cairo-Alexandria Trade Logistics Development Project, which is being implemented in cooperation with the National Railways Authority of Egypt (NRA).

For his part, Mr. Stephane Guimbert, Regional Director of the World Bank for Egypt, presented an overview of a new global health initiative led by the World Bank, which aims to expand basic health coverage to an additional 1.5 billion people worldwide, focusing on middle- and low-income countries. The idea of Egypt joining as a key participant in this initiative was raised in light of its significant progress in health sector reforms, particularly through the implementation of the Universal Health Insurance system, which is considered one of the largest social protection projects in the region.

Distributed by APO Group on behalf of Ministry of Planning, Economic Development, and International Cooperation – Egypt.

MIL OSI Africa –

July 23, 2025

MIL-OSI Canada: Supporting Jasper through recovery: Premier Smith

Source: Government of Canada regional news (2)

“One year ago, life was forever changed for the people of Jasper.

“The wildfire that struck in July 2024 forced hundreds of families to flee their homes, shuttered local businesses and brought an entire community to a halt. What should have been a peaceful summer turned into fear, uncertainty and loss. For many Jasperites, that difficult chapter still isn’t over, and my heart is with every person or family still waiting to return home.

“While much was tragically lost to the fire, many homes and businesses were saved. We know that would not have been possible without the courage and professionalism of first responders. Firefighters from across the province, utility crews, police, paramedics and municipal staff came together, risked their safety and gave everything they had to protect the community. We are deeply grateful for their service.

“The road to full recovery for the Municipality of Jasper and its residents has not yet come to an end. Our government remains fully committed to working with the Municipality of Jasper, Parks Canada and all levels of government until the community is not only restored but made stronger and more resilient for the future.”

Quick facts

Alberta has invested more than $181 million to support Jasper’s recovery:
- Up to $149 million in Disaster Recovery Program funding.
- $7.5 million in emergency evacuation payments to over 6,500 Jasperites.
- $12.9 million in matching funds to support the Canadian Red Cross with helping residents and business owners.
- $2.5 million in tourism support.
- $121,400 to the Jasper Food Bank.
- $3 million in property tax relief for residents and businesses.
- $6.5 million in revenue stabilization for the municipality.
- $14 million to help rebuild a seniors complex for displaced senior residents of the Pine Grove Manor.
- $2 million one-time grant for regional transit services.

MIL OSI Canada News –

July 23, 2025

MIL-OSI: QNB Corp. Reports Earnings for Second Quarter 2025

Source: GlobeNewswire (MIL-OSI)

QUAKERTOWN, Pa., July 22, 2025 (GLOBE NEWSWIRE) — QNB Corp. (the “Company” or “QNB”) (OTCQX: QNBC), the parent company of QNB Bank (the “Bank”), reported net income for the second quarter of 2025 of $3,883,000 or $1.04 per share on a diluted basis. This compares to net income of $2,465,000, or $0.67 per share on a diluted basis, for the same period in 2024. For the six months ended June 30, 2025, QNB reported net income of $6,461,000, or $1.74 per share on a diluted basis. This compares to net income of $5,059,000, or $1.38 per share on a diluted basis, reported for the same period in 2024.

For the second quarter ended June 30, 2025, the annualized rate of return on average assets and average shareholders’ equity was 0.83% and 14.25%, respectively, compared with 0.57% and 10.73%, respectively, for the second quarter 2024.

The operating performance of the Bank, a wholly-owned subsidiary of QNB Corp., improved for the quarter ended June 30, 2025, in comparison with the same period in 2024, due primarily to improvement in the interest margin causing a $2,915,000 increase in net interest income and a reduction in the provision for credit losses on loans and unfunded commitments of $260,000; this was partly offset by a decrease in non-interest income of $146,000 and an increase in non-interest expense of $539,000. The change in contribution from QNB Corp. for the quarter ended June 30, 2025, compared with the same period in 2024, is primarily due to a decrease in net interest income of $855,000, related to the subordinated debt issuance in 2024.

The following table presents disaggregated net income (loss):

	Three months ended,									Six months ended,
	6/30/2025			6/30/2024			Variance			6/30/2025			6/30/2024			Variance
QNB Bank	$	4,679,000		$	2,741,000		$	1,938,000		$	7,971,000		$	5,072,000		$	2,899,000
QNB Corp		(796,000	)		(276,000	)		(520,000	)		(1,510,000	)		(13,000	)		(1,497,000	)
Consolidated net income	$	3,883,000		$	2,465,000		$	1,418,000		$	6,461,000		$	5,059,000		$	1,402,000

Total assets as of June 30, 2025 were $1,884,828,000 compared with $1,870,894,000 at December 31, 2024. Total cash and cash equivalents increased $15,758,000, or 31.1%, to $66,471,000, primarily due to increases in customer deposits. Loans receivable increased $2,491,000 to $1,218,539,000. Total deposits increased $23,126,000, or 1.4%, to $1,651,667,000. Long-term borrowing declined $30,000,000 and short-term borrowing increased $13,620,000.

“Consistent with the first quarter, the Bank’s operating performance continued to improve in the second quarter, primarily driven by an expanding net interest margin that positively impacted net interest income,” said David W. Freeman, President and Chief Executive Officer. He added, “Loan and deposit balances remained stable, with modest increases. This tempered growth reflects our customers’ continued cautious borrowing and spending amid ongoing economic uncertainty. Looking ahead, we remain cautiously optimistic about the second half of the year, supported by a strengthening pipeline and signs of businesses adapting to a new economic environment.”

Net Interest Income and Net Interest Margin

Net interest income for the quarter ended June 30, 2025 totaled $12,652,000, an increase of $2,060,000, from the same period in 2024. Net interest margin was 2.69% for the second quarter of 2025 and 2.46% for the same period in 2024. Net interest margin was 2.60% for the six months ended June 30, 2025, compared with 2.43% for the same period in 2024.

The yield on earning assets was 4.90% for the second quarter of 2025, compared with 4.70% in the second quarter of 2024; an increase of 20 basis points. For the six-month period ended June 30, 2025, the yield on earning assets was 4.85%, compared with 4.64% for the same period in 2024. The cost of interest-bearing liabilities was 2.68% for the second quarter ended June 30, 2025, compared with 2.73% for the same period in 2024, a decrease of five basis points. For the six-month period ended June 30, 2025, the cost of interest-bearing liabilities was 2.72% compared with 2.70% for the same period in 2024.

Proceeds from the growth in average deposits and the issuance of subordinated debt over the past year were invested in loans, higher-yielding securities and used to pay down short-term borrowings. Loan growth was primarily in commercial real estate, which comprised 45.5% of average earning assets in the six months of 2025 compared with 45.2% for the same period in 2024, and the increases in both rates and volume in commercial real estate loans majorly contributed to the 29 basis-point increase in the yield on loans. The increase in the available-for-sale investments portfolio was primarily in corporate debt securities. The 18-basis point increase in rate on investments was primarily due to the 96-basis point increase in the yield on corporate debt securities. The average rate paid on interest-bearing deposits decreased 22 basis points; this was more than offset by the issuance of subordinated debt, which was the primary contributor to the increase in the cost of funds of two basis points.

Asset Quality, Provision for Credit Losses on Loans and Allowance for Credit Losses

QNB recorded a reversal of $145,000 in the provision for credit losses on loans in the second quarter of 2025 compared to a $132,000 provision in the second quarter of 2024. QNB recorded a provision of $406,000 in the provision for credit losses on loans for the six-month ended June 30, 2025 compared to a $39,000 provision for the same period of 2024. QNB’s allowance for credit losses on loans of $9,169,000 represents 0.75% of loans receivable at June 30, 2025, compared to $8,744,000, or 0.72% of loans receivable at December 31, 2024. The three-basis point increase in the allowance for credit losses on loans was primarily due to an increase in loans and reserves for collateral dependent loans partly offset by an improvement in the economic outlook. Net loan recoveries were $16,000 for the quarter ended June 30, 2025, compared with charge-offs of $12,000 for the same period in 2024. Annualized net loan recoveries for the quarter ended June 30, 2025 were 0.01% and annualized net loan charge-offs were 0.00% for the quarter ended June 30, 2024, of average loans receivable, respectively. Net loan recoveries were $19,000 for the six months ended June 30, 2025, compared with charge-offs of $33,000 for the same period in 2024. Annualized net loan recoveries for the six months ended June 30, 2025 were 0.00% compared to annualized net charge-offs of 0.01% for the same period in 2024, of average loans receivable, respectively.

Total non-performing loans, which represent loans on non-accrual status and loans past due 90 days or more and still accruing interest, were $8,947,000, or 0.73% of loans receivable at June 30, 2025, compared with $1,975,000, or 0.16% of loans receivable at December 31, 2024. The increase was primarily due to one commercial customer relationship. In cases where there is a collateral shortfall on non-accrual loans, specific reserves have been established based on updated collateral values even if the borrower continues to pay in accordance with the terms of the agreement. At June 30, 2025, $7,841,000, or approximately 88% of the loans classified as non-accrual, are current or past due less than 30 days. Commercial loans classified as substandard or doubtful loans totaled $34,275,000 at June 30, 2025, compared with $34,301,000 at December 31, 2024; these were comprised primarily of commercial real estate loans.

Non-Interest Income

Total non-interest income was $1,652,000 for the second quarter of 2025 compared with $1,465,000 for the same period in 2024. There were no realized and unrealized gain/loss on securities for the quarter ended June 30, 2025 compared to a net loss of $80,000 in the same period in 2024. Excluding the net realized and unrealized gains on securities, non-interest income increased $107,000, or 6.9%. During the second quarter of 2024 the Bank sold lower-yielding securities to better position its net interest margin; the total loss on security sales was $1,096,000. The Bank also completed the exchange offer to convert its Visa B-1 shares to B-2 and C shares; the Bank recorded a $1,354,000 unrealized gain on the Visa C shares in the second quarter of 2024.

Fees for service to customers increased $58,000 for the quarter ended June 30, 2025, as overdraft fees increased $45,000 and other deposit-related fees increased $13,000. ATM and debit card increased $19,000 due to volume. Retail brokerage and advisory income increased $14,000 to $140,000 for the same period. Other non-interest income increased $10,000 for the same period due to an increase in letter of credit fees of $7,000 and referral income of $6,000.

For the six months ended June 30, 2025, non-interest income was $3,236,000 a decrease of $65,000 compared to the same period in 2024, primarily due to the change in fair value of the equities portfolio of $986,000 in 2024; primarily related to the Visa stock conversion discussed above. Realized loss on sale of securities in 2024 was $719,000. Net gain on sale of loans increased $9,000 when comparing the six months ended June 30, 2025 with the same period in 2024. Increases in non-interest income for the six months ended June 30, 2025 compared to the same period in 2024 comprise: fees for services to customers, ATM and debit card fees and retail brokerage and advisory, which increased $85,000, $39,000 and $62,000, respectively. Other non-interest income increased $7,000 due primarily to increases in letter of credit fees and title insurance company income partly offset by a decrease in merchant servicing income.

Non-Interest Expense

Total non-interest expense was $9,562,000 for the second quarter of 2025 compared with $8,934,000 for the same period in 2024. Salaries and benefits expense increased $213,000, or 4.2%, to $5,251,000 when comparing the two quarters. Salary expense and related payroll taxes increased $350,000, or 8.5%, to $4,447,000 during the second quarter of 2025 compared to the same period in 2024, primarily due to pay increases. Benefits expense decreased $177,000, or 31.3%, when comparing the two periods primarily due to a reduction in medical costs.

Net occupancy and furniture and equipment expense increased $200,000, or 13.5%, to $1,681,000 for the second quarter of 2025 primarily due to software maintenance costs and depreciation. Other non-interest expense increased $215,000, or 8.9%, when comparing second quarter of 2025 with the same period in 2024 due to an increase in third-party services of $127,000 related to information technology services and consultant expense and an increase in write-offs relating to fraud on customer accounts of $150,000. These increases were partly offset by the recording of a potential expense of $85,000 related to the Visa stock exchange make-whole agreement in the 2024 period.

For the six months ended June 30, 2025, non-interest expense was $18,931,000, an increase of $1,164,000, or 6.6%, compared to the same period in 2024.

Income Taxes

Provision for income taxes increased $461,000 to $1,005,000 in the second quarter of 2025 due increased pre-tax income, compared with the same period in 2024. The effective tax rate for the quarter ended June 30, 2025 was 20.6% compared with 18.1% for the same period in 2024. The effective tax rate for the six months ended June 30, 2025 was 20.1% compared with 19.3% for the same period in 2024.

About the Company

QNB Corp. is the holding company for QNB Bank, which is headquartered in Quakertown, Pennsylvania. QNB Bank currently operates twelve branches in Bucks, Lehigh and Montgomery Counties and offers commercial and retail banking services in the communities it serves. In addition, the Company provides securities and advisory services under the name of QNB Financial Services through a registered Broker/Dealer and Registered Investment Advisor, and title insurance as a member of Laurel Abstract Company LLC. More information about QNB Corp. and QNB Bank is available at QNBBank.com.

Forward Looking Statement

This press release may contain forward-looking statements as defined in the Private Securities Litigation Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors. Such factors include the possibility that increased demand or prices for the Company’s financial services and products may not occur, changing economic and competitive conditions, technological developments, and other risks and uncertainties, including those detailed in the Company’s filings with the Securities and Exchange Commission, including “Item lA. Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise. The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands)
Balance Sheet (Period End)	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24
Assets	$	1,884,828		$	1,896,189		$	1,870,894		$	1,841,563		$	1,761,487
Cash and cash equivalents		66,471			81,557			50,713			104,232			76,909
Investment securities
Debt securities, AFS		544,262			547,138			546,559			510,036			460,418
Equity securities		—			—			—			2,760			7,233
Loans held-for-sale		1,166			248			664			294			786
Loans receivable		1,218,539			1,212,162			1,216,048			1,171,361			1,162,310
Allowance for credit losses on loans		(9,169	)		(9,298	)		(8,744	)		(8,987	)		(8,858	)
Net loans		1,209,370			1,202,864			1,207,304			1,162,374			1,153,452
Deposits		1,651,667			1,664,555			1,628,541			1,626,284			1,572,839
Demand, non-interest bearing		201,460			203,666			183,499			190,240			190,333
Interest-bearing demand, money market and savings		1,060,688			1,083,011			1,063,584			1,055,409			1,003,813
Time		389,519			377,878			381,458			380,635			378,693
Short-term borrowings		67,464			43,299			53,844			22,918			49,066
Long-term debt		—			30,000			30,000			30,000			30,000
Subordinated debt		39,168			39,118			39,068			39,030			—
Shareholders’ equity		113,269			108,223			103,349			105,340			96,885

Asset Quality Data (Period End)
Non-accrual loans	$	8,947		$	8,651		$	1,975		$	1,696		$	2,078
Loans past due 90 days or more and still accruing		—			—			—			—			—
Non-performing loans		8,947			8,651			1,975			1,696			2,078
Other real estate owned and repossessed assets		—			—			—			—			—
Non-performing assets	$	8,947		$	8,651		$	1,975		$	1,696		$	2,078

Allowance for credit losses on loans	$	9,169		$	9,298		$	8,744		$	8,987		$	8,858

Non-performing loans / Loans excluding held-for-sale		0.73	%		0.71	%		0.16	%		0.14	%		0.18	%
Non-performing assets / Assets		0.47	%		0.46	%		0.11	%		0.09	%		0.12	%
Allowance for credit losses on loans / Loans excluding held-for-sale		0.75	%		0.77	%		0.72	%		0.77	%		0.76	%

QNB Corp.
Consolidated Selected Financial Data (unaudited)
(Dollars in thousands, except per share data)	Three months ended,															Six months ended,
For the period:	6/30/25			3/31/25			12/31/24			9/30/24			6/30/24			6/30/25			6/30/24
Interest income	$	23,110		$	22,198		$	22,209		$	21,945		$	20,345		$	45,308		$	39,914
Interest expense		10,458			10,661			11,234			10,818			9,753			21,119			19,154
Net interest income		12,652			11,537			10,975			11,127			10,592			24,189			20,760
(Reversal of) provision for credit losses		(146	)		550			(255	)		159			114			404			28
Net interest income after provision for credit losses		12,798			10,987			11,230			10,968			10,478			23,785			20,732
Non-interest income:
Fees for services to customers		485			447			454			469			427			932			847
ATM and debit card		724			656			708			691			705			1,380			1,341
Retail brokerage and advisory income		140			141			118			139			126			281			219
Net realized gain (loss) on investment securities		–			–			1,414			224			(1,096	)		–			(719	)
Unrealized (loss) gain on equity securities		–			–			(1,344	)		143			1,016			–			986
Net (loss) gain on sale of loans		4			18			(3	)		19			(2	)		22			13
Other		299			322			298			282			289			621			614
Total non-interest income		1,652			1,584			1,645			1,967			1,465			3,236			3,301
Non-interest expense:
Salaries and employee benefits		5,251			5,032			5,079			4,650			5,038			10,283			10,012
Net occupancy and furniture and equipment		1,681			1,736			1,653			1,531			1,481			3,417			2,996
Other		2,630			2,601			2,349			2,455			2,415			5,231			4,759
Total non-interest expense		9,562			9,369			9,081			8,636			8,934			18,931			17,767
Income before income taxes		4,888			3,202			3,794			4,299			3,009			8,090			6,266
Provision for income taxes		1,005			624			743			961			544			1,629			1,207
Net income	$	3,883		$	2,578		$	3,051		$	3,338		$	2,465		$	6,461		$	5,059
Share and Per Share Data:
Net income – basic	$	1.05		$	0.70		$	0.83		$	0.91		$	0.67		$	1.74		$	1.38
Net income – diluted	$	1.04		$	0.69		$	0.83		$	0.91		$	0.67		$	1.74		$	1.38
Book value	$	30.46		$	27.96		$	28.57		$	26.34		$	25.57		$	30.46		$	25.57
Cash dividends	$	0.38		$	0.38		$	0.37		$	0.37		$	0.37		$	0.76		$	0.74
Average common shares outstanding -basic		3,710,878			3,699,854			3,688,078			3,679,799			3,665,695			3,705,396			3,660,435
Average common shares outstanding -diluted		3,724,808			3,713,141			3,695,518			3,682,773			3,665,695			3,718,513			3,660,435
Selected Ratios:
Return on average assets (1)		0.83	%		0.56	%		0.66	%		0.74	%		0.57	%		0.69	%		0.59	%
Return on average shareholders’ equity (1)		14.25	%		9.73	%		11.62	%		13.25	%		10.73	%		12.02	%		11.05	%
Net interest margin (tax equivalent)		2.69	%		2.51	%		2.38	%		2.48	%		2.46	%		2.60	%		2.43	%
Efficiency ratio (tax equivalent)		66.39	%		70.65	%		71.16	%		65.27	%		73.26	%		68.43	%		73.00	%
Average shareholders’ equity to total average assets		5.79	%		5.74	%		5.65	%		5.59	%		5.35	%		5.77	%		5.35	%
Net loan (recoveries) charge-offs	$	(16	)	$	(3	)	$	1		$	25		$	12		$	(19	)	$	33
Net loan (recoveries) charge-offs – annualized / Average loans excluding held-for-sale		-0.01	%		0.00	%		0.00	%		0.01	%		0.00	%		0.00	%		0.01	%
Balance Sheet (Average)
Assets (1)	$	1,887,138		$	1,872,950		$	1,848,524		$	1,792,952		$	1,729,132		$	1,880,083		$	1,719,837
Investment securities		621,128			614,329			552,323			569,135			578,615			623,827			573,876
Loans receivable		1,216,011			1,193,949			1,158,731			1,139,874			1,108,836			1,213,173			1,124,354
Deposits		1,647,990			1,635,629			1,600,925			1,542,661			1,497,692			1,640,634			1,520,176
Shareholders’ equity (1)		109,299			107,503			104,433			100,192			92,432			108,406			92,064

(1) In 2025, the Company changed its calculation of average assets and average equity to include the impact of accumulated other comprehensive income (loss), net of tax, to align its calculation with its peer group. Prior period information has been restated for this new calculation; specifically impacting the non-GAAP performance ratios for return on average assets and return on average equity.

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Three Months Ended
	June 30, 2025								June 30, 2024
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	21,032			4.24	%	$	223	$	6,824			5.19	%	$	88
U.S. Government agencies		75,963			1.18			224		84,558			1.17			246
State and municipal		105,090			2.88			756		107,881			3.51			947
Mortgage-backed and CMOs		354,349			2.46			2,184		356,650			2.73			2,436
Corporate debt securities and mutual funds		64,694			6.38			1,031		6,721			5.72			96
Equities		–			–			–		6,501			3.55			57
Total investment securities		621,128			2.84			4,418		569,135			2.72			3,870
Loans:
Commercial real estate		863,096			5.94			12,775		801,691			5.46			10,876
Residential real estate		114,600			4.38			1,255		108,693			4.07			1,106
Home equity loans		70,666			6.41			1,130		65,575			6.83			1,114
Commercial and industrial		145,262			7.41			2,682		142,174			7.60			2,686
Consumer loans		3,355			7.70			65		3,781			7.50			71
Tax-exempt loans		19,347			4.23			205		18,284			3.87			176
Total loans, net of unearned income*		1,216,326			5.97			18,112		1,140,198			5.65			16,029
Other earning assets		61,355			4.45			680		43,200			5.44			584
Total earning assets		1,898,809			4.90			23,210		1,752,533			4.70			20,483
Cash and due from banks		13,806								13,313
Accumulated other comprehensive loss, net of tax		(59,922	)							(68,908	)
Allowance for credit losses on loans		(9,376	)							(8,885	)
Other assets		43,821								41,079
Total assets	$	1,887,138							$	1,729,132

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	376,735			0.94	%		888	$	334,017			0.84	%		702
Municipals		146,214			3.92			1,427		132,762			4.81			1,587
Money market		259,621			2.88			1,862		229,984			3.58			2,049
Savings		281,076			1.29			901		290,172			1.28			924
Time < $100		179,411			3.61			1,617		170,640			4.03			1,708
Time $100 through $250		155,026			3.99			1,542		143,315			4.59			1,636
Time > $250		51,832			4.08			527		53,316			4.63			614
Total interest-bearing deposits		1,449,915			2.42			8,764		1,354,206			2.74			9,220
Short-term borrowings		70,942			3.90			689		52,383			1.52			199
Long-term debt		5,495			4.79			67		28,132			4.70			334
Subordinated debt		39,141			9.58			938		—			—			—
Total borrowings		115,578			5.88			1,694		80,515			2.66			533
Total interest-bearing liabilities		1,565,493			2.68			10,458		1,434,721			2.73			9,753
Non-interest-bearing deposits		198,075								188,455
Other liabilities		14,271								13,524
Shareholders’ equity		109,299								92,432
Total liabilities and
shareholders’ equity	$	1,887,138							$	1,729,132
Net interest rate spread					2.22	%							1.97	%
Margin/net interest income					2.69	%	$	12,752					2.46	%	$	10,730
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

QNB Corp. (Consolidated)
Average Balances, Rate, and Interest Income and Expense Summary (Tax-Equivalent Basis)

	Six Months Ended
	June 30, 2025								June 30, 2024
	Average			Average					Average			Average
	Balance			Rate			Interest		Balance			Rate			Interest
Assets
Investment securities:
U.S. Treasury	$	20,596			4.31	%	$	440	$	6,803			5.26	%	$	178
U.S. Government agencies		75,962			1.18			448		84,755			1.17			494
State and municipal		105,172			2.87			1,510		108,027			3.46			1,871
Mortgage-backed and CMOs		358,969			2.45			4,392		361,317			2.66			4,809
Corporate debt securities and mutual funds		63,128			6.62			2,089		6,714			5.66			190
Equities		–			–			–		6,260			3.63			113
Total investment securities		623,827			2.85			8,879		573,876			2.67			7,655
Loans:
Commercial real estate		860,363			5.82			24,844		788,413			5.40			21,176
Residential real estate		114,436			4.36			2,493		108,808			3.99			2,172
Home equity loans		69,327			6.41			2,204		63,922			6.82			2,169
Commercial and industrial		146,962			7.41			5,399		141,233			7.55			5,301
Consumer loans		3,400			7.69			130		3,712			7.80			144
Tax-exempt loans		19,073			4.19			397		18,462			3.85			353
Total loans, net of unearned income*		1,213,561			5.89			35,467		1,124,550			5.60			31,315
Other earning assets		54,536			4.44			1,202		44,922			5.48			1,223
Total earning assets		1,891,924			4.85			45,548		1,743,348			4.64			40,193
Cash and due from banks		13,517								13,041
Accumulated other comprehensive loss, net of tax		(59,954	)							(68,475	)
Allowance for credit losses on loans		(9,059	)							(8,916	)
Other assets		43,655								40,839
Total assets	$	1,880,083							$	1,719,837

Liabilities and Shareholders’ Equity
Interest-bearing deposits:
Interest-bearing demand	$	378,504			0.98	%		1,832	$	327,961			0.82	%		1,345
Municipals		147,887			3.93			2,883		132,325			4.81			3,164
Money market		257,952			2.88			3,680		228,928			3.57			4,064
Savings		280,371			1.29			1,794		294,262			1.28			1,873
Time < $100		178,958			3.70			3,287		164,175			3.90			3,181
Time $100 through $250		154,578			4.12			3,155		135,464			4.47			3,013
Time > $250		50,317			4.19			1,045		51,536			4.43			1,136
Total interest-bearing deposits		1,448,567			2.46			17,676		1,334,651			2.68			17,776
Short-term borrowings		59,300			3.90			1,145		69,912			2.37			824
Long-term debt		17,735			4.74			423		24,066			4.56			554
Subordinated debt		39,117			9.59			1,875		—			—			—
Total borrowings		116,152			5.98			3,443		93,978			2.95			1,378
Total interest-bearing liabilities		1,564,719			2.72			21,119		1,428,629			2.70			19,154
Non-interest-bearing deposits		192,067								185,525
Other liabilities		14,891								13,619
Shareholders’ equity		108,406								92,064
Total liabilities and
shareholders’ equity	$	1,880,083							$	1,719,837
Net interest rate spread					2.13	%							1.94	%
Margin/net interest income					2.60	%	$	24,429					2.43	%	$	21,039
Tax-exempt securities and loans were adjusted to a tax-equivalent basis and are based on the Federal corporate tax rate of 21%
Non-accrual loans and investment securities are included in earning assets.
* Includes loans held-for-sale

The MIL Network –

July 23, 2025

MIL-OSI: C&F Announces Expansion into Southwest Virginia

Source: GlobeNewswire (MIL-OSI)

TOANO, Va., July 22, 2025 (GLOBE NEWSWIRE) — C&F Financial Corporation (the Corporation) (NASDAQ: CFFI), the holding company for C&F Bank, is proud to announce a significant expansion of its commercial banking operations with a seasoned team that will establish its presence in Southwest Virginia. This strategic move positions C&F to serve key markets including Roanoke, Lynchburg, Danville, Martinsville, and Blacksburg.

Leading this expansion is Matt Hubbard, who joins as Southwest Virginia Regional President. With over 15 years of commercial banking leadership experience, most recently at Atlantic Union Bank, (formerly American National Bank). Matt brings deep market knowledge and a strong commitment to community engagement. He is a graduate of Radford University and the William & Mary Mason School of Business.

Joining Matt are two highly respected banking professionals:

Sally Siveroni, Commercial Credit Officer, began her banking career in 1986 and most recently served as Regional Credit Officer at Atlantic Union Bank. She is a graduate of James Madison University.
James Little, Commercial Banking Relationship Manager, has 17 years of experience in both retail and commercial banking. A fellow James Madison University graduate and VBA Bank School alumnus, James is also deeply involved in community initiatives.

“We are thrilled to welcome Matt, Sally, and James to the C&F family,” said Tom Cherry, President and CEO of C&F Bank. “Their expertise and strong community ties will accelerate our growth in this promising region, where we already enjoy strong customer relationships.”

With this expansion, C&F is now firmly positioned as one of the premier community banks serving the entire Commonwealth of Virginia—an achievement that underscores the company’s strategic vision and competitive strength.

About C&F

C&F Bank operates 31 banking offices and five commercial loan offices located throughout Virginia and offers full wealth management services through its subsidiary C&F Wealth Management, Inc. C&F Mortgage Corporation and its subsidiary C&F Select LLC provide mortgage loan origination services through offices located in Virginia and the surrounding states. C&F Finance Company provides automobile, marine and recreational vehicle loans through indirect lending programs offered primarily in the Mid-Atlantic, Midwest and Southern United States from its headquarters in Henrico, Virginia.

Additional information regarding the Corporation’s products and services, as well as access to its filings with the Securities and Exchange Commission, are available on the Corporation’s website at http://www.cffc.com.

Contact:	Jason Long, CFO and Secretary
	(804) 843-2360

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/7e0101d3-4ffc-436f-a151-f7f79df53bdd

The MIL Network –

July 23, 2025

MIL-OSI Africa: Central African Pipeline System Gains Traction as Committee President Returns to African Energy Week (AEW) 2025

Source: APO

In line with the African Energy Week (AEW): Invest in African Energies conference’s vision to make African energy poverty history by 2030, Gabriel Mbaga Obiang Lima, President of the Strategic Partnership and Fund Committee for the Central African Pipeline System (CAPS), is returning to this year’s edition as a speaker. Lima’s participation comes as the development of CAPS – an integrated network of downstream and midstream oil and gas infrastructure – is advancing with an aim to enhance energy access, reduce fuel imports and spur industrial growth in Central Africa.

In July 2025, a significant milestone was achieved when the Central African Economic and Monetary Community, the African Petroleum Producers’ Organization (APPO) and the Central Africa Business & Energy Forum signed a Memorandum of Understanding (MoU) to kick-start a feasibility study for CAPS. The MoU sets the foundation for participation from up to 11 Central African countries in evaluating the project’s viability, regional impact and national contributions. The 6,500km pipeline network will enhance Central Africa’s energy market resilience and affordability by optimizing the exploitation, local beneficiation and distribution of Africa’s estimated 125.3 billion barrels of crude oil and 620 trillion cubic feet of gas resources.

With APPO finalizing the launch of the multi-billion African Energy Bank with the African Export-Import Bank this year, the organization’s participation in the MoU and interest in CAPS is timely. The MoU not only strengthens regional collaboration but also strategically positions CAPS to be shortlisted for financing from the new bank. Furthermore, with 18 oil-producing APPO member states focused on accelerating the exploitation of hydrocarbon resources, the organization’s involvement in CAPS represents a powerful step toward eradicating energy poverty and enhancing regional energy security. The CAPS project will encompass oil, gas and LPG pipelines, pumping stations, storage terminals, refineries and gas-fired power plants, all contributing to regional energy access and industrial transformation.

AEW: Invest in African Energies serves as the continent’s premier platform for connecting high-impact African projects such as CAPS with global investors. Under the theme, Invest in African Energy: Positioning Africa as the Global Energy Champion, the event provides a strategic venue for Lima to present updates on CAPS milestones, development timelines and its alignment with Africa’s broader industrialization agenda. With the pipeline set to span various countries such as Angola, Burundi, Cameroon, Chad, Republic of the Congo, Democratic Republic of the Congo, Equatorial Guinea, Gabon, Rwanda and São Tomé & Príncipe, AEW: Invest in African Energies enables Lima to engage directly with policymakers and stakeholders vital to advancing the initiative.

“As Africa advances its ‘drill baby drill’ agenda, building robust downstream and midstream infrastructure for local energy beneficiation and distribution is critical,” stated NJ Ayuk, Executive Chairman of the African Energy Chamber. “The CAPS project, under Lima’s leadership, is a testament to Africa’s breakthrough in closing infrastructure gaps. Projects like CAPS are essential to lifting 600 million people out of energy poverty and providing access to clean cooking for over 900 million.”

Distributed by APO Group on behalf of African Energy Chamber.

About African Energy Week:
AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

Media files

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MIL OSI Africa –

July 23, 2025

MIL-OSI Banking: Samsung Launches Galaxy F36 5G with Premium Leather Finish, Segment-Leading Camera and AI Innovations in India

Source: Samsung

Samsung, India’s largest consumer electronics brand, today announced the launch of Galaxy F36 5G to deliver a superior smartphone experience to users. Galaxy F36 5G comes with several segment-leading features that sets it apart from its predecessors. Galaxy F36 5G stands out with a premium leather finish, 50MP OIS triple camera with Nightography, Corning® Gorilla® Glass Victus®+ protection and advanced AI innovations.

“With Galaxy F36 5G, we are reiterating our commitment to empower our consumers’ lives with powerful, future-ready devices. Galaxy F36 5G further accelerates the democratization of mobile AI, bringing cutting-edge AI features and capabilities within everyone’s reach, enabling users to unlock their full potential,” said Akshay S Rao, Director, MX Business, Samsung India.

AI Camera
Galaxy F36 5G comes with an advanced 50MP OIS (Optical Image Stabilization) triple camera setup, enabling you to shoot high-resolution, shake free photos and blur free videos. Galaxy F36 5G features Auto Night Mode, taking the Nightography experience to a whole new level by allowing you to capture crystal-clear low-light shots and videos. You can capture sharper and clearer night portraits thanks to AI stereo depth map technology.

Users can record 4K videos with both the front and rear cameras. Galaxy F36 5G comes with fantastic mobile AI features such as Object Eraser, which instantly removes unwanted objects or people from photos; Image Clipper, which helps users extract a subject from an image and separate it from the background; and Edit Suggestions, which provides AI-powered recommendations for photo and video editing, taking the user experience to a whole new level.

AI-Led Convenience
Furthering the democratization of mobile AI to even more devices in the Galaxy ecosystem, Galaxy F36 5G comes with Circle to Search with Google. Additionally, it introduces new AI experience with Gemini Live, bringing real-time visual conversations with AI to Galaxy users. It allows for natural, conversational interactions with the Gemini AI assistant through voice, camera, and screen sharing. You can talk to Gemini, ask it to brainstorm ideas, explore topics, or even practice for important moments.

Design and Display
Designed for young consumers and built to impress, Galaxy F36 5G features a premium leather finish which is crafted to perfection and will come in three refreshing colours – Luxe Violet, Coral Red and Onyx Black. Galaxy F36 5G is only 7.7mm slim and features segment-leading Corning® Gorilla® Glass Victus®+ protection – making it extremely tough as well as ergonomic.

Galaxy F36 5G features a 6.7-inch Full HD+ Super AMOLED display with 120Hz refresh rate and Vision Booster technology making it the perfect device for an unparalleled viewing experience even in the harsh outdoor lighting conditions.

Powerful Processor
Galaxy F36 5G is powered by the fast and power-efficient Exynos 1380 processor. Along with the 5nm based processor, Galaxy F36 5G also comes with a large vapor cooling chamber, which ensures efficient heat dissipation, providing users with a lag-free gaming experience and super smooth processing. For long sessions of browsing, binge watching and gaming, Galaxy F36 5G packs in 5000mAh battery. The device supports 25W fast charging, giving more power in less time.

Galaxy Experiences
Galaxy F36 5G offers segment-best 6 generations of Android upgrades and 6 years of security updates, ensuring a future-ready experience. Galaxy F36 5G comes with One UI 7 out of the box, bringing simple, impactful and emotive design as well as streamlined and cohesive experience to Galaxy users.

Galaxy F36 5G aims to revolutionize consumer experience with ‘made in India’ innovations such as Voice Focus that cuts the ambient noise for an amazing calling experience. Galaxy F36 5G also features Quick Share which enables users to instantly share files, photos and documents with other devices, even if they are faraway, including your laptop and tab, privately.

Galaxy F36 5G also features one of Samsung’s most innovative security features: Samsung Knox Vault. The hardware-based security system offers comprehensive protection against both hardware and software attacks. It includes Samsung’s innovative Tap & Pay feature with Samsung Wallet allowing consumers to make secure payments effortlessly.

Product
Variant
Introductory Price
Offers

Galaxy F36 5G
6GB+128GB
INR 16499

Including INR 1000 Introductory Offer

8GB+128GB
INR 17999

8GB+256GB
INR 20999

MIL OSI Global Banks –

July 23, 2025

MIL-OSI United Kingdom: Modernised aid budget will focus on impact, value for money and transparency

Source: United Kingdom – Executive Government & Departments 3

Press release

Modernised aid budget will focus on impact, value for money and transparency

New aid funding figures published today show how the international aid budget will deliver value for money for the British taxpayer – and maximum impact for the most vulnerable overseas.

New figures released today (Tuesday, 22 July) set out how the government will spend the aid budget in 2025/2026, prioritising areas where Britain can make the biggest difference.
The new approach means the UK will prioritise spending through the most impactful multilateral organisations like the World Bank and Gavi, the vaccine alliance, while working to drive reform of these institutions.
Development Minister Baroness Chapman today confirms UK support for the World Bank’s International Development Association – with the fund expected to benefit 1.9 billion people in next three years.

New aid funding figures published today (Tuesday, 22 July 2025) show how the international aid budget will deliver value for money for the British taxpayer – and maximum impact for the most vulnerable overseas. The cut in the aid budget to 0.3% of Gross National Income from 2027 means every penny must count if the UK is to make progress on its biggest development priorities: to tackle humanitarian, health and climate crises.

Today’s aid figures, published in the FCDO’s annual report and the first to be released since the cut was announced in February, give an indication of the new approach the Development Minister Baroness Chapman will take. They follow a comprehensive line-by-line strategic review of aid conducted by the Minister, which focused on prioritisation, efficiency, protecting planned humanitarian support and live contracts while ensuring responsible exit from programming where necessary.

The pivot will see global organisations with a proven track record of impact, like the World Bank and Gavi, prioritised to deliver better results for the UK taxpayer and the world’s poorest people.

The UK will also continue to play a key humanitarian role supporting those in crisis, including in Gaza, Ukraine and Sudan, and will hold a reserve fund to respond to future crises at pace.

However, underperforming multilateral organisations will face funding cuts in future, and as the UK moves to spend less on aid, bilateral support to some countries is also dropping.

While bilateral support for some countries will drop, the UK will instead increasingly share expertise, like that of our world leading scientists and financial sector. It will focus on tackling the climate crisis, health threats and humanitarian emergencies, creating stability and growth to help deliver the Plan for Change at home. The National Security Strategy published earlier this year said British interests are best served through effective multilateral cooperation.

As part of its growing support for impactful multilateral organisations, the UK today confirmed it will honour a pledge to the International Development Association (IDA) – the World Bank’s fund for the poorest countries – having agreed a new way to make payments that reduces costs to UK taxpayers and provides the same value to the Bank. IDA is expected to benefit 1.9 billion people in the next three years.

Minister for Development Baroness Chapman said:

We are modernising our approach to international development. Every pound must work harder for UK taxpayers and the people we help around the world and these figures show how we are starting to do just that through having a clear focus and priorities.

The UK is moving towards a new relationship with developing countries, becoming partners and investors, rather than acting as a traditional aid donor. We want to work with countries and share our expertise – from world leading science to the City of London – to help them become no longer dependent on aid, and organisations like the World Bank and Gavi are central to how we can work with others to solve some of the biggest challenges of our time: humanitarian disasters, pandemics and the climate crisis.

The UK’s support for the multilateral system will come with a renewed push for its reform to maximise efficiency and impact for people on the ground. It follows UK funding announced for another multilateral organisation Gavi, the vaccine alliance, last month, which will help save up to 8 million lives.

The World Bank support was originally announced last November, but all UK aid funding was subsequently reviewed following the 0.3% announcement in February this year. Every £1 the UK invests in the World Bank’s IDA fund, enables £4 of finance for developing countries. The IDA fund is expected to benefit 1.9 billion people in next three years.

The World Bank President Ajay Banga today welcomed the UK’s funding commitment. He said:

We are grateful to the United Kingdom for honouring its pledge to IDA. In a time of tight budgets and growing global risks, this is not just generosity – it’s strategy. Every taxpayer pound is multiplied many times over through the Bank’s ability to mobilise capital and partner with the private sector.

These resources help create jobs in developing countries – jobs that build self-reliant economies, reduce the drivers of instability, crime, and migration, and grow the middle class. In turn, they create future consumers of UK products and investment opportunities that strengthen the UK economy over the long term.

The UK’s new approach aligns with recent calls from Global South leaders for a move away from traditional aid to a focus on investment and partnerships, including from the African Development Bank, and the former Kenyan President.

Alongside the figures released today, the government has also published an Equality Impact Assessment which found plans to reduce the aid budget will “protect against disproportionate impacts on equalities” overall.

The government will publish indicative multi-year allocations for 2026-2029 in the autumn, providing an even clearer picture of the UK’s future direction in international development.

Background:

The full ODA spending allocations were published in the FCDO’s Annual Report and Accounts on GOV.UK on Tuesday, July 22, 2025. See here for further details: FCDO Annual Report and Accounts 2024 to 2025- GOV.UK
The Equality Impact Assessment was published alongside the Annual Report and Accounts: FCDO Official Development Assistance programme allocations 2025 to 2026: equality impact assessment – GOV.UK
The UK announced last November it would pledge £1.98 billion to the World Bank’s IDA21 – from July 2025 to June 2028. All UK aid funding was subsequently reviewed following the decision to reduce the aid budget in February. We have now agreed to accelerate our payments to the Bank, reducing their need to borrow from markets. This means that while the UK will provide the Bank with around 10% less cash in total, the Bank will regard our contribution as equivalent to our original pledge. A number of other donors accelerate their payments to provide early support to the Bank and to increase the value of their funding in the same way.
The Foreign Secretary announced new humanitarian support for Gaza on Monday, July 21, 20225. See here for further details: UK pledges lifesaving aid for Gaza – GOV.UK

Media enquiries

Email newsdesk@fcdo.gov.uk

Telephone 020 7008 3100

Email the FCDO Newsdesk (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.

Published 22 July 2025

MIL OSI United Kingdom –

July 23, 2025

MIL-OSI Africa: The International Islamic Trade Finance Corporation (ITFC) Reports Strong Results and Sustainability Progress in 2024 Annual Development Effectiveness Report

Source: APO

The International Islamic Trade Finance Corporation (ITFC) (www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB) Group, announced the release of its 2024 Annual Development Effectiveness Report (ADER).

The ADER serves as an essential reporting and transparency tool, enabling ITFC to measure, communicate, and continually refine its strategies and interventions for achieving sustainable development outcomes. The 2024 report highlights ITFC’s expanding role as a driver of sustainable trade, economic resilience, and inclusive growth across its member countries.

“The ADER showcases ITFC’s ability to provide innovative, impactful solutions that address the complex needs of our member countries,” said Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC. “While we celebrate key milestones, we are also assessing our interventions to ensure we continue advancing toward a more inclusive, resilient, and sustainable future.”

Key Highlights of 2024 ADER

In 2024, ITFC delivered tangible results, demonstrating its focus on resilience and economic inclusion. The key highlights include:

Filling Trade Finance Gaps. ITFC allocated US$2.66 billion, 38% of its total portfolio, to LDMCs, supporting inclusive growth. Additionally, US$268 million directly benefited over 380,000 smallholder farmers, enabling the procurement of 840,000 metric tons of local agricultural products.
Securing Critical Supply Chains. Disbursements to the energy sector amounted to US$4 billion, bringing reliable electricity to approximately 13.8 million households. Food security interventions provided over 5.6 million metric tons of essential commodities worth US$1.45 billion, benefiting more than 30 million households.
Strengthening Private Sector Participation. ITFC financed 312 small and medium enterprises (SMEs) and corporates through partnerships with 23 financial institutions, promoting financial inclusion and economic diversification.
Fostering Regional Integration. Intra-OIC trade financing reached US$4.8 billion. Through strategic programs such as the Arab Africa Trade Bridges (AATB) and the Aid for Trade Initiative for Arab States (AfTIAS), ITFC strengthened regional value chains and institutional capacities.
Investing in Capacity Development. Technical assistance and training initiatives reached over 3,100 individuals, a 32% increase from the previous year, with nearly 40% women participants.

Embedding Sustainability into Core Operations

The Corporation adopted its first Environmental and Social (E&S) Policy and launched a Ten-Year E&S Action Plan. A new governance structure was also introduced to guide implementation, laying the foundation for more responsible trade finance operations.

Empowering Growth through the SDGs

ITFC made significant strides in advancing multiple Sustainable Development Goals through its trade finance and development initiatives. Its efforts have helped reduce poverty (SDG 1), strengthen food security (SDG 2), and expand access to clean and affordable energy (SDG 7). By supporting smallholder farmers, empowering local economies, and promoting intra-OIC trade, ITFC has also played a key role in fostering strong global partnerships to accelerate sustainable development across member countries (SDG 17).

The 2024 ADER affirms ITFC’s deepening commitment to transparency, sustainability, and measurable impact. As the Corporation looks ahead, it remains focused on bold innovation, collaborative partnerships, and leveraging Islamic finance to build a more inclusive and sustainable global trade ecosystem.

Access the full English version here – https://ADER.ITFC-IDB.org

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

Contact us:
Tel: +966 12 646 8337 
Fax: +966 12 637 1064  
E-mail: ITFC@itfc-idb.org     

Social media:
Twitter: http://apo-opa.co/3GYB6PJ 
Facebook: http://apo-opa.co/4f7UruK 
LinkedIn: International Islamic Trade Finance Corporation (ITFC) (http://apo-opa.co/44Go3M4) 

About the International Trade Finance Corporation (ITFC):
The International Islamic Trade Finance Corporation (ITFC) is the trade finance arm of the Islamic Development Bank (IsDB) Group. It was established with the primary objective of advancing trade among OIC member countries, which would ultimately contribute to the overarching goal of improving the socio-economic conditions of the people across the world. Commencing operations in January 2008, ITFC has provided more than US$83 billion of financing to OIC member countries, making it the leading provider of trade solutions for these member countries’ needs. With a mission to become a catalyst for trade development for OIC member countries and beyond, the Corporation helps entities in member countries gain better access to trade finance and provides them with the necessary trade-related capacity-building tools, which would enable them to successfully compete in the global market. 

Media files

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MIL OSI Africa –

July 23, 2025

MIL-OSI Russia: There are no advantages – 40% of Russians do not see the advantages of the digital ruble

Translation. Region: Russian Federal

Source: Mainfin Bank –

An important disclaimer is at the bottom of this article.

What pros and cons do Russians see in the new digital currency?

The citizens surveyed believe that the new currency, which is to be launched in the foreseeable future, has its advantages. 10% of respondents named security, reliability, protection from fraudsters as advantages, another 3% each – ease of payments and the possibility of state control. There were significantly more disadvantages:

12% of Russians noted a low level of personal data protection; excessive control by the state – 8%; linking of electronic wallets to the Internet – 6%; difficulty of use – 4% of citizens.

Only 6% of survey participants did not see any disadvantages to the new form of payment – the same result was recorded a year earlier. The majority of citizens are wary of digital assets, and consider state control over the personal finances of the population to be excessive.

How do citizens rate their readiness to use digital rubles?

Russians also assessed their own awareness of the electronic ruble – 7% of citizens know well how the new currency works, 45% have a general idea, 43% have only heard the term. At the same time, few Russians want to personally use digital rubles:

24% would definitely not like to use a new form of payment; 27% said that they are rather not ready for experiments; another 14% of respondents found it difficult to answer; 26% of Russians are generally not against using the digital ruble; only 9% of people definitely want to try electronic currency.

According to the survey results, only 35% of respondents agree to use digital rubles. It is interesting that over the past two years, this figure has increased – previously, only 30% of Russians expressed such readiness.

Why are Russians wary of the digital ruble?

Experts assured that the skepticism of the population is the result of low awareness of digital assets: people are afraid of everything unknown, especially in the area of personal finance. The possibility of total state control also raises concerns, although the authorities promise that the level of supervision will be the same as in the banking system.

“It is necessary to conduct explanatory work and build up the information campaign as the digital ruble is prepared for a large-scale launch,” the Central Bank of the Russian Federation stated.

Let us recall that the project was supposed to start on July 1, but the regulator was forced to postpone the deadline due to the banks’ unpreparedness to work with the platform. Now the Central Bank of the Russian Federation proposes to introduce the digital ruble no later than September 1, 2026. There is still more than a year left until the new deadline, but experts doubt that even then the new form of payment will be available to every citizen – commercial banks are actively opposing the project’s implementation due to the risk of a significant reduction in commission income.

12:00 07/22/2025

Source:

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.

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MIL OSI Russia News –

July 23, 2025

MIL-OSI United Nations: Secretary-General’s remarks on Climate Action “A Moment of Opportunity: Supercharging the Clean Energy Age” [as delivered; scroll down for All-French]

Source: United Nations secretary general

Excellencies,

Ladies and gentlemen,

Friends joining us from around the world,

The headlines are dominated by a world in trouble.

By conflict and climate chaos.

By rising human suffering.

By growing geo-political divides.

But amidst the turmoil, another story is being written.

And its implications will be profound.

Throughout history, energy has shaped the destiny of humankind – from mastering
fire, to harnessing steam, to splitting the atom.

Now, we are on the cusp of a new era.

Fossil fuels are running out of road.

The sun is rising on a clean energy age.

Just follow the money.

$2 trillion went into clean energy last year – that’s $800 billion more than fossil fuels, and up almost 70% in ten years.

And new data released today from the International Renewable Energy Agency shows that solar – not so long ago four times the cost of fossil fuels – is now 41% cheaper.

Offshore wind – 53%.

And over 90% of new renewables worldwide produced electricity for less than the cheapest new fossil fuel alternative.

This is not just a shift in power. This is a shift in possibility.

Yes, in repairing our relationship with the climate.

Already, the carbon emissions saved by solar and wind globally are almost equivalent to what the whole European Union produces in a year.

But this transformation is fundamentally about energy security and people’s security.

It’s about smart economics.

Decent jobs, public health, advancing the Sustainable Development Goals.

And delivering clean and affordable energy to everyone, everywhere.

Today, we are releasing a special report with the support of UN agencies and partners — the International Energy Agency, the IMF, IRENA, the OECD and the World Bank.

The report shows how far we have come in the decade since the Paris Agreement sparked a clean energy revolution. And it highlights the vast benefits – and actions needed – to accelerate a just transition globally.

Renewables already nearly match fossil fuels in global installed power capacity.

And that’s just the beginning.

Last year, almost all the new power capacity built came from renewables.

And every continent on Earth added more renewables capacity than fossil fuels.

The clean energy future is no longer a promise. It’s a fact.

No government. No industry. No special interest can stop it.

Of course, the fossil fuel lobby of some fossil fuel companies will try – and we know the lengths to which they will go.

But I have never been more confident that they will fail – because we have passed the point of no return.

For three powerful reasons.

First, market economics.

For decades, emissions and economic growth rose together.

No more.

In many advanced economies, emissions have peaked, but growth continues.

In 2023 alone, clean energy sectors drove 10% of global GDP growth.

In India, 5%. The United States, 6%. China – a leader in the energy transition – 20%.

And in the European Union, nearly 33%.

And clean energy sector jobs now outnumber fossil fuel jobs – employing almost 35 million people worldwide.

Even Texas – the heart of the American fossil fuel industry – now leads the US in renewables.

Why? Because it makes economic sense.

And yet fossil fuels still enjoy a 9 to 1 advantage in consumption subsidies globally – a clear market distortion.

Add to that the unaccounted costs of climate damages on people and planet – and the distortion is even greater.

Countries that cling to fossil fuels are not protecting their economies – they are sabotaging them.

Driving up costs.

Undermining competitiveness.

Locking-in stranded assets.

And missing the greatest economic opportunity of the 21st century.

Excellencies,
Dear friends,

Second — renewables are here to stay because they are the foundation of energy security and sovereignty.

Let’s be clear: The greatest threat to energy security today is in fossil fuels.

They leave economies and people at the mercy of price shocks, supply disruptions, and geopolitical turmoil.

Just look at Russia’s invasion of Ukraine.

A war in Europe led to a global energy crisis.

Oil and gas prices soared.

Electricity and food bills followed.

In 2022 average households around the world saw energy costs jump 20%.

Modern and competitive economies need stable, affordable energy. Renewables offer both.

There are no price spikes for sunlight.

No embargoes on wind.

Renewables can put power – literally and figuratively – in the hands of people and governments.

And almost every nation has enough sun, wind, or water to become energy self-sufficient.

Renewables mean real energy security. Real energy sovereignty. And real freedom from fossil-fuel volatility.

Dear friends,

The third and final reason why there is no going back on renewables: Easy access.

You can’t build a coal plant in someone’s backyard.

But you can deliver solar panels to the most remote village on earth.

Solar and wind can be deployed faster, cheaper and more flexibly than fossil fuels ever could.

And while nuclear will be part of the global energy mix, it can never fill the access gaps.

All of this is a game-changer for the hundreds of millions of people still living without electricity – most of them in Africa, a continent bursting with renewable potential.

By 2040, Africa could generate 10 times more electricity than it needs – entirely from renewables.

We are already seeing small-scale and off-grid renewable technologies lighting homes, and powering schools and businesses in remote areas.

And in places like Pakistan for example, people-power is fueling a solar surge – consumers are driving the clean energy boom.

Excellencies,
Dear friends,

The energy transition is unstoppable.

But the transition is not yet fast enough or fair enough.

OECD countries and China account for 80% of renewable power capacity installed worldwide.

Brazil and India make up nearly 10%.

Africa — just 1.5%.

Meanwhile, the climate crisis is laying waste to lives and livelihoods.

Climate disasters in small island states have wiped out over 100% of GDP.

In the United States, they are pushing insurance premiums through the roof.

And the 1.5 degree limit is in unprecedented peril.

To keep it within reach, we must drastically speed up the reduction of emissions – and the reach of the clean energy transition.

With manufacturing capacity racing, prices plummeting, and COP30 fast approaching…

This is our moment of opportunity.

We must seize it.

We can do so by taking action in six opportunity areas.

First – by using new national climate plans to go all-out on the energy transition.

Too often, governments send mixed messages:

Bold renewable targets on one day. New fossil fuel subsidies and expansions the next.

The next national climate plans, or NDCs, are due in a matter of months.

They must bring clarity and certainty.

G20 countries must lead. They produce 80% of global emissions.

The principle of common but differentiated responsibilities must apply but every country must do more.

Ahead of COP30 in Brazil this November, they must submit new plans.

I invite leaders to present their new NDCs at an event I will host in September, during General Assembly High-level week. These must:

Cover all emissions, across the entire economy.

Align with the 1.5 degree limit.

Integrate energy, climate and sustainable development priorities into one coherent vision.

And deliver on global promises:

To double energy efficiency and triple renewables capacity by 2030.

And to accelerate the transition away from fossil fuels.

These plans must be backed by long-term roadmaps for a just transition to net-zero energy systems – in line with global net-zero by 2050.

And they must be underpinned by policies that show that the clean energy future is not just inevitable – but investable.

Policies that create clear regulations and a pipeline of projects.

That enhance public-private partnerships – unlocking capital and innovation.

That put a meaningful price on carbon.

And that end subsidies and international public finance for fossil fuels – as promised.

Second, this is our moment of opportunity to build the energy systems of the 21st century.

The technology is moving ahead.

In just fifteen years, the cost of battery storage systems for electricity grids has dropped over 90%.

But here’s the problem.

Investments in the right infrastructure are not keeping up.

For every dollar invested in renewable power, just 60 cents go to grids and storage.

That ratio should be one-to-one.

We are building renewable power – but not connecting it fast enough.

There’s three times more renewable energy waiting to be plugged into grids than was added last year.

And fossil fuels still dominate the global total energy mix.

We must act now and invest in the backbone of a clean energy future:

In modern, flexible and digital grids – including regional integration.

In a massive scale-up of energy storage.

In charging networks – to power the electric vehicle revolution.

On the other hand we need energy efficiency but also electrification — across buildings, transport and industry.

This is how we unlock the full promise of renewables – and build energy systems that are clean, secure and fit for the future.

Third, this is our moment of opportunity to meet the world’s surging energy demand sustainably.

More people are plugging in.

More cities are heating up – with soaring demand for cooling.

And more technologies – from AI to digital finance – are devouring electricity.

Governments must aim to meet all new electricity demand with renewables.

AI can boost efficiency, innovation, and resilience in energy systems. And we must take profit in it.

But it is also energy-hungry.

A typical AI data-center eats-up as much electricity as 100,000 homes.

The largest ones will soon use twenty times that.

By 2030, data centres could consume as much electricity as all of Japan does today.

This is not sustainable – unless we make it so.

And the technology sector must be out front.

Today I call on every major tech firm to power all data centres with 100% renewables by 2030.

And – along with other industries – they must use water sustainably in cooling systems.

The future is being built in the cloud.

It must be powered by the sun, the wind, and the promise of a better world.

Excellencies
Dear friends,

Fourth, this is the moment of opportunity for a just energy transition.

The clean energy that we must deliver must also deliver equity, dignity and opportunity for all.

That means governments leading a just transition.

With support, education and training – for fossil fuel workers, young people, women, Indigenous Peoples and others – so that they can thrive in the new energy economy.

With stronger social protection – so no one is left behind.

And with international cooperation to help low-income countries that are highly-dependent on fossil fuels and struggling to make the shift.

But justice doesn’t stop here.

The critical minerals that power the clean energy revolution are often found in countries that have long been exploited.

And today, we see history repeating.

Communities mistreated.

Rights trampled.

Environments trashed.

Nations stuck at the bottom of value chains – while others reap rewards.

And extractive models digging deeper holes of inequality and harm.

This must end.

Developing countries can play a major role in diversifying sources of supply.

The UN Panel on Critical Energy Transition Minerals has shown the way forward – with a path grounded in human rights, justice and equity.

Today, I call on governments, businesses and civil society to work with us to deliver its recommendations.

Let’s build a future that is not only green – but just.

Not only fast – but fair.

Not only transformative – but inclusive.

Fifth, we have a moment of opportunity to use trade and investment to supercharge the energy transition.

Clean energy needs more than ambition.

It needs access – to technologies, materials, and manufacturing.

But these are concentrated in just a few countries.

And global trade is fragmenting.

Trade policy must support climate policy.

Countries committed to the new energy era must come together to ensure that trade and investment drive it forward.

By building diverse, secure, and resilient supply chains.

By cutting tariffs on clean energy goods.

By unlocking investment and trade – including through South-South cooperation.

And by modernizing outdated investment treaties – starting with Investor-State Dispute Settlement provisions.

Today, fossil fuel interests are weaponizing these provisions to delay the transition, particularly in several developing countries.

Reform is urgent.

The race for the new must not be a race for the few.

It must be a relay – shared, inclusive and resilient.

Let’s make trade a tool for transformation.

Sixth and finally, this is our moment of opportunity to unleash the full force of finance – driving investment to markets with massive potential.

Despite soaring demand and vast renewables potential — developing countries are being locked out of the energy transition.

Africa is home to 60% of the world’s best solar resources. But it received just 2% of global clean energy investment last year.

Zoom out, and the picture is just as stark.

In the last decade, only one in every five clean energy dollars went to emerging and developing countries outside China.

To keep the 1.5 degree limit alive — and deliver universal energy access – annual clean energy investment in those countries must rise more than fivefold by 2030.

That demands bold national policies. And concrete international action to:

Reform the global financial architecture.

Drastically increase the lending capacity of multilateral development banks — making them bigger, bolder, and better able to leverage massive amounts of private finance at reasonable costs;

And take effective action on debt relief – and scale up proven tools like debt for climate swaps.

Today, developing countries pay outlandish sums for both debt and equity financing – in part because of outdated risk models, bias and broken assumptions that boost the cost of capital.

Credit ratings agencies and investors must modernize.

We need a new approach to risk that reflects:

The promise of clean energy.

The rising cost of climate chaos.

And the danger of stranded fossil fuel assets.

I urge parties to unite to solve the complex challenges facing some developing countries in the energy transition – such as early retirement of coal plants.

Excellencies,
Dear friends,

The fossil fuel age is flailing and failing.

We are in the dawn of a new energy era.

An era where cheap, clean, abundant energy powers a world rich in economic opportunity.

Where nations have the security of energy autonomy.

And the gift of power is a gift for all.

That world is within reach.

But it won’t happen on its own.

Not fast enough.

Not fair enough.

It is up to us.

We have the tools to power the future for humanity.

Let’s make the most of them.

This is our moment of opportunity.

And I Thank you.

****
[All-French]

Excellences,

Mesdames et Messieurs,

Chers amis présents avec nous depuis le monde entier,

L’actualité est dominée par les maux de la planète.

Par les conflits et le chaos climatique.

Par la multiplication des souffrances humaines.

Par des dissensions géopolitiques croissantes.

Mais au milieu de cette tourmente, autre chose est en train de se jouer.

Quelque chose qui aura de profondes répercussions.

Tout au long de l’histoire, l’énergie a présidé aux destinées de l’humanité
– du feu à l’atome, en passant par la vapeur.

Aujourd’hui, nous entrons dans une ère nouvelle.

Les énergies fossiles sont en bout de course.

Nous sommes à l’aube d’une ère des énergies propres.

Il suffit d’observer les flux financiers.

L’année dernière, 2 000 milliards de dollars ont été investis dans les énergies propres : c’est 800 milliards de dollars de plus que pour les énergies fossiles et cela représente une hausse de près de 70 % en 10 ans.

Et de nouvelles données publiées aujourd’hui par l’Agence internationale pour les énergies renouvelables montrent que l’énergie solaire, qui était quatre fois plus chère que les énergies fossiles il y a peu de temps encore, est aujourd’hui 41 % moins chère.

L’éolien en mer – 53 % moins cher.

Et le coût de l’électricité produite par plus de 90 % des nouvelles énergies renouvelables dans le monde est inférieur au coût du nouveau combustible fossile le moins cher.

C’est un tournant. Non seulement sur le plan énergétique, mais aussi du point de vue des possibilités qui s’offrent à nous.

Car oui, nous pouvons assainir notre rapport au climat.

Les énergies solaire et éolienne permettent d’ores et déjà d’économiser au niveau mondial une quantité d’émissions de carbone presque équivalente à l’ensemble des émissions annuelles de l’Union européenne.

Mais plus fondamentalement, il y va de la sécurité énergétique et de la sécurité des personnes.

De la gestion avisée de l’économie.

Des emplois décents, de la santé publique et de la réalisation des objectifs de développement durable.

Et de la capacité de mettre à la disposition des populations du monde entier une énergie propre et abordable.

Aujourd’hui, nous publions un rapport spécial avec le soutien d’organismes des Nations Unies et d’organisations partenaires – l’Agence internationale de l’énergie, le Fonds monétaire international, l’Agence internationale pour les énergies renouvelables, l’Organisation de coopération et de développement économiques et la Banque mondiale.

Ce rapport illustre le chemin parcouru au cours de la décennie écoulée, depuis que l’Accord de Paris a ouvert la voie à une révolution de l’énergie propre. Il montre que nous avons beaucoup à gagner d’une transition rapide et juste à l’échelle mondiale, pour peu que nous prenions les mesures voulues.

Au niveau mondial, la puissance installée des énergies renouvelables est déjà presque comparable à celle des énergies fossiles.

Et ce n’est qu’un début.

L’année dernière, la quasi-totalité de l’énergie fournie par les nouvelles capacités de production était renouvelable.

Sur tous les continents, on a créé plus de capacités de production d’énergie provenant de sources renouvelables que provenant de combustibles fossiles.

Les sources d’énergie renouvelable ont généré près d’un tiers de l’électricité mondiale.

L’énergie propre n’est plus une promesse d’avenir. C’est une réalité.

Aucun gouvernement, aucune industrie, aucun intérêt particulier ne saurait l’arrêter.

Bien entendu, le lobby des combustibles fossiles de certaines entreprises s’y emploiera, et nous savons jusqu’où il peut aller.

Mais – j’en ai désormais la certitude – tous ses efforts sont voués à l’échec, car il est trop tard pour revenir en arrière.

Il y a trois raisons de poids à cela.

Premièrement, les marchés.

Pendant des décennies, l’augmentation des émissions est allée de pair avec celle de la croissance économique.

Ce n’est plus le cas.

Dans de nombreuses économies avancées, les émissions plafonnent, mais l’économie continue de croître.

Rien qu’en 2023, le secteur de l’énergie propre a contribué à hauteur de 10 % à la croissance du PIB mondial.

En Inde, 5 %. Aux États-Unis, 6 %. En Chine – l’un des leaders de la transition énergétique –, 20 %.

Et dans l’Union européenne, près de 33 %.

Et le secteur des énergies propres emploie désormais 35 millions de personnes dans le monde, soit plus que le secteur des énergies fossiles.

Même le Texas, cœur de l’industrie fossile américaine, est aujourd’hui le premier producteur d’énergies renouvelables aux États-Unis.

Pourquoi ? Parce que c’est une question de bon sens économique.

Et ce, en dépit d’une distorsion manifeste du marché au profit des énergies fossiles, qui bénéficient de subventions à la consommation neuf fois plus importantes que les renouvelables au niveau mondial.

Si l’on ajoute à cela le coût non comptabilisé des dommages subis par les populations et la planète à cause des changements climatiques, la distorsion est encore plus marquée.

Les pays qui s’accrochent aux énergies fossiles ne protègent pas leur économie, ils la sabotent.

Ils poussent les coûts à la hausse.

Ils freinent leur compétitivité.

Ils se condamnent à avoir des actifs bloqués.

Et ils passent à côté de la plus grande promesse économique du XXIe siècle.

Excellences, Chers amis,

En deuxième lieu, les énergies renouvelables sont promises à un bel avenir, car elles sont au cœur de la sécurité et de la souveraineté énergétiques.

Disons-le clairement : les combustibles fossiles constituent aujourd’hui la plus grande menace pour la sécurité énergétique.

Ils laissent les économies et les populations à la merci des variations de prix, des ruptures d’approvisionnement et des turbulences géopolitiques.

C’est ce que l’on a vu lors de l’invasion de l’Ukraine par la Russie.

Une guerre en Europe a entraîné une crise énergétique mondiale.

Les cours du pétrole et du gaz ont grimpé en flèche.

Et les factures d’électricité et les dépenses alimentaires leur ont emboîté le pas.

En 2022, les ménages ont vu leurs dépenses énergétiques augmenter de 20 % en moyenne dans le monde.

Les économies modernes et compétitives ont besoin d’un approvisionnement énergétique stable, à un prix abordable. Les énergies renouvelables permettent d’avoir les deux.

La lumière du soleil n’est pas sujette aux flambées de prix.

Le vent ne peut être soumis à aucun embargo.

En leur fournissant de l’électricité, les énergies renouvelables peuvent mettre le pouvoir entre les mains des citoyens et des États.

Or, presque tous les pays ont suffisamment de soleil, de vent ou d’eau pour devenir autosuffisants sur le plan énergétique.

Les énergies renouvelables sont la solution pour une véritable sécurité énergétique. Une véritable souveraineté énergétique. Et une véritable protection contre la volatilité associée aux combustibles fossiles.

Chers amis,

Troisième et dernière raison pour laquelle les énergies renouvelables sont désormais incontournables : la facilité d’accès.

On ne peut pas construire une centrale à charbon au fond d’un jardin.

Mais on peut installer des panneaux solaires dans le village le plus isolé de la planète.

Le solaire et l’éolien peuvent être déployés plus rapidement, plus facilement, et pour moins cher que les énergies fossiles ne pourront jamais l’être.

Et bien que le nucléaire soit amené à faire partie du bouquet énergétique mondial, il ne pourra jamais résorber les inégalités d’accès.

Tout cela change la donne pour les centaines de millions de personnes qui vivent encore sans électricité, pour la plupart en Afrique, continent qui regorge de sources d’énergies renouvelables inexploitées.

À l’horizon 2040, l’Afrique pourrait avoir une production d’électricité 10 fois supérieure à ses besoins, uniquement grâce au renouvelable.

Déjà, des dispositifs autonomes de production d’énergie renouvelable à petite échelle servent à éclairer des maisons et à alimenter des écoles et des entreprises dans les zones reculées.

Et dans des pays comme le Pakistan, le solaire s’impose grâce à l’impulsion des citoyens : ce sont les consommateurs qui sont à l’origine du boom des énergies propres.

Excellences, Chers amis,

Rien ne peut arrêter la transition énergétique.

Mais cette transition n’est encore ni assez rapide ni assez équitable.

Les pays de l’OCDE et la Chine représentent 80 % de la capacité de production d’énergie renouvelable installée dans le monde.

Le Brésil et l’Inde, près de 10 %.

L’Afrique, seulement 1,5 %.

Pendant ce temps, des vies et des moyens de subsistance sont anéantis par la crise climatique.

Dans certains petits États insulaires, les catastrophes climatiques ont coûté plus de 100 % du PIB.

Aux États-Unis, elles font exploser les primes d’assurance.

Et la limite de 1,5 degré devient plus que jamais un vœu pieux.

Pour que cet objectif reste à notre portée, nous devons au plus vite réduire les émissions et étendre l’envergure de la transition vers les énergies propres.

Les capacités de production se multiplient, les prix chutent et la COP30 approche à grands pas.

Nous nous trouvons donc à un moment décisif.

Ne le laissons pas passer.

Le moment est venu d’agir dans six domaines porteurs.

Premièrement, nous devons saisir l’occasion de faire des nouveaux plans climatiques nationaux le moteur d’une transition énergétique irréversible.

Trop souvent, les gouvernements envoient des messages contradictoires :

Un jour, des objectifs ambitieux en matière d’énergies renouvelables. Le lendemain, de nouvelles subventions aux combustibles fossiles et des mesures qui favorisent leur expansion.

Les prochains plans d’action nationaux sur le climat – également connus sous le nom de contributions déterminées au niveau national – doivent être présentés dans quelques mois.

Ils devront être source de clarté et de certitude.

Les pays du G20 doivent être à la manœuvre. Ils sont responsables de 80 % des émissions mondiales.

Le principe des responsabilités communes mais différenciées doit être appliqué, mais tous les pays doivent redoubler d’effort.

En prévision de la COP30, qui se tiendra au Brésil en novembre, ils doivent présenter de nouveaux plans.

J’invite les dirigeants à présenter leurs nouvelles contributions déterminées au niveau national lors d’une manifestation que j’organiserai en septembre, durant la semaine de haut niveau de l’Assemblée générale. Ces contributions devront :

Couvrir toutes les émissions, dans tous les secteurs de l’économie.

Ne pas dépasser la limite de 1,5 degré.

Se fonder sur une approche cohérente intégrant les priorités liées à l’énergie, au climat et au développement durable.

Et tenir les promesses qui ont été faites au niveau mondial, à savoir :

Multiplier par deux l’efficacité énergétique et par trois les capacités en énergies renouvelables d’ici à 2030.

Et accélérer l’abandon progressif des combustibles fossiles.

Ces plans devront être assortis de feuilles de route à long terme permettant d’assurer une transition équitable vers des systèmes énergétiques à zéro émission nette, conformément à l’objectif fixé pour 2050.

Et ils doivent s’accompagner de politiques qui montrent qu’un avenir alimenté par des énergies propres est inéluctable et mérite d’être soutenu par des investissements.

Des politiques qui instaurent un cadre réglementaire clair et favorisent l’émergence d’un vivier de projets.

Qui renforcent les partenariats public-privé en mobilisant des capitaux et en stimulant l’innovation.

Qui assurent la tarification effective du carbone.

Et qui marquent la fin des subventions et des financements publics internationaux destinés aux combustibles fossiles – comme promis.

Deuxièmement, nous devons saisir l’occasion de bâtir les systèmes énergétiques du XXIe siècle.

La technologie progresse.

En l’espace de quinze ans seulement, le coût des systèmes de stockage par batterie pour réseaux électriques a chuté de plus de 90 %.

Mais il y a un problème.

Les investissements dans les infrastructures nécessaires ne suivent pas.

Pour chaque dollar investi dans les énergies renouvelables, 0,6 dollar seulement est consacré aux réseaux et au stockage.

Le rapport devrait être d’un pour un.

Nous produisons de l’énergie renouvelable, mais nous ne l’intégrons pas assez vite aux réseaux.

La quantité d’énergie renouvelable en attente de raccordement est trois fois supérieure à celle effectivement mise en service l’an dernier.

Et le bouquet énergétique mondial reste dominé par les combustibles fossiles.

Nous devons agir dès maintenant et investir dans l’architecture d’un avenir placé sous le signe des énergies propres.

Dans des réseaux modernes, souples et informatisés – ainsi que dans l’intégration régionale.

Dans une augmentation massive de la capacité de stockage d’énergie.

Dans les réseaux de recharge – pour alimenter la révolution des véhicules électriques.

D’un autre côté, nous avons besoin l’efficacité énergétique et l’électrification dans les secteurs du bâtiment, des transports et de l’industrie.

C’est ainsi que nous tirerons pleinement parti des possibilités offertes par les énergies renouvelables et que nous bâtirons des systèmes propres, sûrs et adaptés au monde de demain.

Troisièmement, nous devons saisir l’occasion de répondre durablement à l’augmentation de la demande énergétique mondiale.

De plus en plus de personnes sont raccordées aux réseaux.

De plus en plus de villes se réchauffent, ce qui entraîne une hausse de la demande de climatisation.

Et de plus en plus de technologies – de l’intelligence artificielle à la finance numérique – consomment une quantité d’électricité colossale.

Pour répondre à l’augmentation de la demande d’électricité, les gouvernements doivent privilégier le renouvelable.

L’intelligence artificielle peut rendre les systèmes énergétiques plus efficaces, plus innovants et plus résilients.

Mais elle est aussi extrêmement énergivore.

Un centre de données IA typique engloutit autant d’électricité que 100 000 foyers.

Bientôt, les plus grands centres consommeront 20 fois plus.

D’ici à 2030, ils pourraient utiliser autant d’électricité que l’ensemble de la population japonaise actuelle.

Cette situation n’est pas viable – et c’est à nous d’y remédier.

Le secteur de la technologie doit montrer la voie.

Aujourd’hui, je demande à toutes les grandes entreprises technologiques de faire en sorte que tous leurs centres de données fonctionnent aux énergies renouvelables d’ici à 2030.

Elles doivent également veiller – tout comme d’autres secteurs – à utiliser durablement l’eau nécessaire aux systèmes de refroidissement.

L’avenir se construit dans le nuage.

Il doit être alimenté par le soleil, le vent et la promesse d’un monde meilleur.

Excellences, Chers amis,

Quatrièmement, nous devons saisir l’occasion d’assurer une transition énergétique juste.

L’ère de l’énergie propre doit garantir l’équité et la dignité et ouvrir de nouvelles perspectives pour l’humanité tout entière.

Cela signifie que les gouvernements doivent prendre les rênes d’une transition juste.

En assurant l’accompagnement, l’éducation et la formation des personnes qui travaillent pour l’industrie fossile, des jeunes, des femmes, des peuples autochtones et d’autres, afin qu’ils puissent prospérer dans une économie reposant sur les énergies nouvelles.

En assurant une meilleure protection sociale pour que personne ne soit laissé pour compte.

Et en renforçant la coopération internationale en vue d’aider les pays à faible revenu qui sont largement tributaires des combustibles fossiles et pour lesquels la transition est difficile.

Mais la justice ne se limite pas à cela.

Les minéraux critiques qui alimentent la révolution des énergies propres se trouvent souvent dans des pays qui ont longtemps été exploités.

Aujourd’hui, nous voyons l’histoire se répéter.

Des populations malmenées.

Leurs droits bafoués.

Leur environnement saccagé.

Des nations reléguées aux échelons inférieurs des chaînes de valeur, tandis que d’autres en accaparent le produit.

Et des modèles d’extraction qui creusent encore les inégalités et amplifient les dégradations.

Il faut que cela cesse.

Les pays en développement peuvent jouer un rôle majeur dans la diversification des sources d’approvisionnement.

Le Groupe chargé de la question des minéraux critiques pour la transition énergétique a défini une trajectoire ancrée dans le respect des droits humains, de la justice et de l’équité.

Aujourd’hui, je demande aux gouvernements, aux entreprises et à la société civile de se joindre à nous pour mettre en œuvre ses recommandations.

Bâtissons un avenir qui soit respectueux de l’environnement et fondé sur l’équité.

Qui advienne rapidement et soit guidé par le principe de justice.

Qui soit porteur de transformation et favorise l’inclusion.

Cinquièmement, nous devons saisir l’occasion de mettre le commerce et l’investissement au service de l’accélération de la transition énergétique.

L’ambition seule ne suffira pas à assurer le passage à une énergie propre.

Il faut aussi des technologies, des matériaux et des minéraux critiques.

Mais ces éléments sont concentrés dans quelques pays seulement.

Et le commerce mondial se fragmente.

La politique commerciale doit soutenir l’action climatique.

Les pays mobilisés en faveur d’une nouvelle ère énergétique doivent unir leurs forces pour lui donner corps grâce au commerce et à l’investissement.

En diversifiant les chaînes d’approvisionnement et en les rendant plus sûres et plus résilientes.

En abaissant les droits de douane sur les biens nécessaires à la production d’énergie propre.

En débloquant les investissements et en renforçant les échanges, notamment dans le cadre de la coopération Sud-Sud.

Et en actualisant des traités d’investissement dépassés, à commencer par les dispositions relatives au règlement des différends entre investisseurs et États.

À l’heure actuelle, le secteur des combustibles fossiles instrumentalise ces dispositions pour retarder la transition, en particulier dans plusieurs des pays en développement.

Une réforme s’impose d’urgence.

La course à l’innovation ne doit pas être réservée à une minorité privilégiée.

Il doit s’agir d’une course de relais – collective, inclusive et source de résilience.

Faisons du commerce un outil de transformation.

Sixièmement, nous devons saisir l’occasion d’exploiter toute la puissance de la finance en dirigeant les investissements vers des marchés à très fort potentiel.

Malgré une demande en forte hausse et un potentiel indéniable en matière d’énergies renouvelables, les pays en développement sont exclus de la transition énergétique.

L’Afrique abrite 60 % des meilleures ressources solaires au monde. Mais elle n’a comptabilisé que 2 % des investissements mondiaux dans les énergies propres au cours de l’année écoulée.

En élargissant le cadre, on obtient un tableau tout aussi alarmant.

Au cours des dix dernières années, seul un dollar sur cinq consacré à l’énergie propre est allé à des pays émergents ou en développement autres que la Chine.

Si nous voulons contenir le réchauffement à 1,5 degré et assurer un accès universel à l’énergie, les investissements annuels dans les énergies propres doivent être multipliés par plus de cinq dans ces pays d’ici à 2030.

Cela exige de prendre des mesures audacieuses à l’échelon national, mais aussi de mener une action concrète au niveau mondial pour :

Réformer l’architecture financière internationale.

Renforcer considérablement la capacité de prêt des banques multilatérales de développement, afin qu’elles gagnent en envergure et en audace et soient plus à même de canaliser des flux massifs de capitaux privés à un coût raisonnable.

Et prendre des mesures efficaces en matière d’allégement de la dette, notamment en intensifiant le recours à des outils éprouvés tels que la conversion de dettes en mesures en faveur du climat.

À l’heure actuelle, les pays en développement paient des sommes exorbitantes pour accéder à des financements par emprunt et par prise de participation, en partie à cause de modèles de risque obsolètes, de préjugés et d’hypothèses erronées qui accroissent considérablement le coût du capital.

Les agences de notation et les investisseurs doivent moderniser leurs pratiques.

Il nous faut une nouvelle approche du risque qui tienne compte :

Du potentiel des énergies propres.

Du coût croissant du chaos climatique.

Et du danger associé aux actifs fossiles échoués.

Je demande instamment aux parties de s’atteler ensemble à régler les problèmes complexes auxquels se heurtent certains pays en développement dans le cadre de la transition énergétique, notamment la mise hors service anticipée des centrales à charbon.

Excellences, chers amis,

L’ère des combustibles fossiles est à bout de souffle et en bout de course.

Nous sommes à l’aube d’une nouvelle ère énergétique.

Une ère dans laquelle une énergie abondante, propre et peu coûteuse viendra alimenter un monde riche en perspectives économiques.

Où la sécurité énergétique des nations sera assurée.

Et où l’énergie sera un bien universel.

Ce monde est à notre portée.

Mais cela ne se fera pas tout seul.

Pas assez rapidement.

Pas assez équitablement.

C’est à nous de prendre les choses en main.

Nous disposons des outils nécessaires pour doter l’humanité de l’énergie de demain.

Utilisons-les à bon escient.

Nous ne devons pas laisser passer ce moment.

Je vous remercie.

MIL OSI United Nations News –

July 23, 2025

MIL-OSI: First Financial Corporation Reports Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

TERRE HAUTE, Ind., July 22, 2025 (GLOBE NEWSWIRE) — First Financial Corporation (NASDAQ:THFF) today announced results for the second quarter of 2025.

Net income was $18.6 million compared to $11.4 million reported for the same period of 2024;
Diluted net income per common share of $1.57 compared to $0.96 for the same period of 2024;
Return on average assets was 1.34% compared to 0.94% for the three months ended June 30, 2024;
Provision for credit losses was $2.0 million compared to provision of $3.0 million for the second quarter 2024; and
Pre-tax, pre-provision net income was $24.9 million compared to $16.2 million for the same period in 2024.¹

The Corporation further reported results for the six months ended June 30, 2025:

Net income was $37.0 million compared to $22.3 million reported for the same period of 2024;
Diluted net income per common share of $3.12 compared to $1.89 for the same period of 2024;
Return on average assets was 1.34% compared to 0.93% for the six months ended June 30, 2024;
Provision for credit losses was $3.9 million compared to provision of $4.8 million for the six months ended June 30, 2024; and
Pre-tax, pre-provision net income was $50.6 million compared to $31.2 million for the same period in 2024.¹

________________________¹Non-GAAP financial measure that Management believes is useful for investors and management to understand pre-tax profitability before giving effect to credit loss expense and to provide additional perspective on the Corporation’s performance over time as well as comparison to the Corporation’s peers and evaluating the financial results of the Corporation – please refer to the Non GAAP reconciliations contained in this release.

Average Total Loans

Average total loans for the second quarter of 2025 were $3.88 billion versus $3.20 billion for the comparable period in 2024, an increase of $680 million or 21.25%. On a linked quarter basis, average loans increased $35 million or 0.92% from $3.84 billion as of March 31, 2025. Increases in average loans year-over-year were a combination of the acquisition of SimplyBank on July 1, 2024, and organic growth.

Total Loans Outstanding

Total loans outstanding as of June 30, 2025, were $3.90 billion compared to $3.20 billion as of June 30, 2024, an increase of $693 million or 21.62%. On a linked quarter basis, total loans increased $42.6 million or 1.11% from $3.85 billion as of March 31, 2025. The year-over-year increase was impacted by the $467 million in loans acquired in the SimplyBank acquisition in July 2024. Organic growth was primarily driven by increases in Commercial Construction and Development, Commercial Real Estate, and Consumer Auto loans.

Norman D. Lowery, President and Chief Executive Officer, commented “We are pleased with our second quarter results, as we have experienced our 7^th consecutive quarter of loan growth. We also had another record quarter of net interest income and saw our net margin expand to 4.15%. We expect continued improvement in coming quarters.”

Average Total Deposits

Average total deposits for the quarter ended June 30, 2025, were $4.65 billion versus $4.11 billion as of June 30, 2024, an increase of $537 million, or 13.06%. On a linked quarter basis, average deposits remained stable when compared to March 31, 2025. Increases in average deposits year-over-year were mostly a result of the acquisition of SimplyBank.

Total Deposits

Total deposits were $4.66 billion as of June 30, 2025, compared to $4.13 billion as of June 30, 2024. On a linked quarter basis, total deposits increased $22.9 million or 0.49% from $4.64 billion as of March 31, 2025. $622 million in deposits were acquired in the SimplyBank acquisition in July 2024. Non-interest bearing deposits were $860 million, and time deposits were $710 million as of June 30, 2025, compared to $749 million and $586 million, respectively for the same period of 2024.

Shareholders’ Equity

Shareholders’ equity at June 30, 2025, was $587.7 million compared to $530.7 million on June 30, 2024. During the last twelve months, the Corporation has not repurchased any shares of its common stock. 518,860 shares remain available for repurchase under the current repurchase authorization. The Corporation paid a $0.51 per share quarterly dividend in April and declared a $0.51 quarterly dividend, which was paid on July 15, 2025.

Book Value Per Share

Book Value per share was $49.59 as of June 30, 2025, compared to $44.92 as of June 30, 2024, an increase of $4.67 per share, or 10.40%. Tangible Book Value per share was $39.74 as of June 30, 2025, compared to $37.12 as of June 30, 2024, an increase of $2.62 per share or 7.06%.

Tangible Common Equity to Tangible Asset Ratio

The Corporation’s tangible common equity to tangible asset ratio was 8.58% at June 30, 2025, compared to 9.14% at June 30, 2024.

Net Interest Income

Net interest income for the second quarter of 2025 was a record $52.7 million, compared to $39.3 million reported for the same period of 2024, an increase of $13.4 million, or 34.0%. Interest income increased $13.4 million and interest expense increased $29 thousand year over year. As mentioned by in the president’s comments above, loan growth has continued for seven consecutive quarters, which contributed to steadily increasing net interest income.

Net Interest Margin

The net interest margin for the quarter ended June 30, 2025, was 4.15% compared to the 3.57% reported at June 30, 2024.

Nonperforming Loans

Nonperforming loans as of June 30, 2025, were $9.8 million versus $15.9 million as of June 30, 2024. The ratio of nonperforming loans to total loans and leases was 0.25% as of June 30, 2025, versus 0.50% as of June 30, 2024. On a linked quarter basis, nonperforming loans were $10.2 million, and the ratio of nonperforming loans to total loans and leases was 0.26% as of March 31, 2025.

Credit Loss Provision

The provision for credit losses for the three months ended June 30, 2025, was $2.0 million, compared to $3.0 million for the same period 2024.

Net Charge-Offs

In the second quarter of 2025 net charge-offs were $1.7 million compared to $4.7 million in the same period of 2024.

Allowance for Credit Losses

The Corporation’s allowance for credit losses as of June 30, 2025, was $47.1 million compared to $38.3 million as of June 30, 2024. The allowance for credit losses as a percent of total loans was 1.21% as of June 30, 2025, compared to 1.20% as of June 30, 2024. On a linked quarter basis, the allowance for credit losses as a percent of total loans decreased one basis point from 1.22% as of March 31, 2025.

Non-Interest Income

Non-interest income for the three months ended June 30, 2025 and 2024 was $10.4 million and $9.9 million, respectively.

Non-Interest Expense

Non-interest expense for the three months ended June 30, 2025, was $38.3 million compared to $32.7 million in 2024.

Efficiency Ratio

The Corporation’s efficiency ratio was 59.37% for the quarter ending June 30, 2025, versus 64.56% for the same period in 2024.

Income Taxes

Income tax expense for the three months ended June 30, 2025, was $4.2 million versus $2.2 million for the same period in 2024. The effective tax rate for 2025 was 18.58% compared to 16.29% for 2024.

About First Financial Corporation

First Financial Corporation (NASDAQ:THFF) is the holding company for First Financial Bank N.A., which is the fifth oldest national bank in the United States, operating 83 banking centers in Illinois, Indiana, Kentucky, Tennessee, and Georgia. Additional information is available at www.first-online.bank.

Investor Contact:
Rodger A. McHargue
Chief Financial Officer
P: 812-238-6334
E: rmchargue@first-online.com


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2025		2025		2024		2025		2024
END OF PERIOD BALANCES
Assets	$	5,602,969	$	5,549,094	$	4,891,068	$	5,602,969	$	4,891,068
Deposits	$	4,662,889	$	4,640,003	$	4,132,327	$	4,662,889	$	4,132,327
Loans, including net deferred loan costs	$	3,896,563	$	3,854,020	$	3,204,009	$	3,896,563	$	3,204,009
Allowance for Credit Losses	$	47,087	$	46,835	$	38,334	$	47,087	$	38,334
Total Equity	$	587,668	$	571,945	$	530,670	$	587,668	$	530,670
Tangible Common Equity ^(a)	$	470,894	$	451,874	$	438,569	$	470,894	$	438,569

AVERAGE BALANCES
Total Assets	$	5,529,225	$	5,508,767	$	4,813,308	$	5,518,996	$	4,808,836
Earning Assets	$	5,213,220	$	5,194,478	$	4,556,839	$	5,203,849	$	4,561,650
Investments	$	1,244,208	$	1,266,300	$	1,279,278	$	1,255,254	$	1,293,800
Loans	$	3,877,246	$	3,841,752	$	3,197,695	$	3,859,499	$	3,188,921
Total Deposits	$	4,651,051	$	4,650,883	$	4,113,826	$	4,650,967	$	4,079,832
Interest-Bearing Deposits	$	3,843,143	$	3,837,679	$	3,413,752	$	3,840,411	$	3,369,921
Interest-Bearing Liabilities	$	269,338	$	261,174	$	152,303	$	265,256	$	186,864
Total Equity	$	576,288	$	564,742	$	517,890	$	570,515	$	520,305

INCOME STATEMENT DATA
Net Interest Income	$	52,671	$	51,975	$	39,294	$	104,646	$	78,214
Net Interest Income Fully Tax Equivalent ^(b)	$	54,091	$	53,373	$	40,673	$	107,464	$	80,970
Provision for Credit Losses	$	1,950	$	1,950	$	2,966	$	3,900	$	4,766
Non-interest Income	$	10,381	$	10,511	$	9,905	$	20,892	$	19,336
Non-interest Expense	$	38,276	$	36,759	$	32,651	$	75,035	$	66,073
Net Income	$	18,586	$	18,406	$	11,369	$	36,992	$	22,293

PER SHARE DATA
Basic and Diluted Net Income Per Common Share	$	1.57	$	1.55	$	0.96	$	3.12	$	1.89
Cash Dividends Declared Per Common Share	$	0.51	$	0.51	$	0.45	$	1.02	$	0.90
Book Value Per Common Share	$	49.59	$	48.26	$	44.92	$	49.59	$	44.92
Tangible Book Value Per Common Share ^(c)	$	38.78	$	38.13	$	36.04	$	39.74	$	37.12
Basic Weighted Average Common Shares Outstanding		11,851		11,842		11,814		11,847		11,809

________________________
(a)   Tangible common equity is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible common equity by excluding goodwill and other intangible assets from shareholder’s equity.
(b)   Net interest income fully tax equivalent is a non-GAAP financial measure derived from GAAP-based amounts. We calculate net interest income fully tax equivalent by adding back the tax equivalent factor of tax exempt income to net interest income. We calculate the tax equivalent factor of tax exempt income by dividing tax exempt income by the net of tax rate of 75%.
(c)   Tangible book value per common share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate the factor by dividing average tangible common equity by average shares outstanding. We calculate average tangible common equity by excluding average intangible assets from average shareholder’s equity.


Key Ratios	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2025		2025		2024		2025		2024
Return on average assets	1.34	%	1.34	%	0.94	%	1.34	%	0.93	%
Return on average common shareholder’s equity	12.90	%	13.04	%	8.78	%	12.97	%	8.57	%
Efficiency ratio	59.37	%	57.54	%	64.56	%	58.46	%	65.87	%
Average equity to average assets	10.42	%	10.25	%	10.76	%	10.34	%	10.82	%
Net interest margin ^(a)	4.15	%	4.11	%	3.57	%	4.13	%	3.55	%
Net charge-offs to average loans and leases	0.18	%	0.19	%	0.59	%	0.18	%	0.39	%
Credit loss reserve to loans and leases	1.21	%	1.22	%	1.20	%	1.21	%	1.20	%
Credit loss reserve to nonperforming loans	480.72	%	460.57	%	240.85	%	480.72	%	240.85	%
Nonperforming loans to loans and leases	0.25	%	0.26	%	0.50	%	0.25	%	0.50	%
Tier 1 leverage	10.91	%	10.63	%	12.14	%	10.91	%	12.14	%
Risk-based capital – Tier 1	12.86	%	12.70	%	14.82	%	12.86	%	14.82	%

________________________
(a) Net interest margin is calculated on a tax equivalent basis.


Asset Quality	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,		June 30,
	2025		2025		2024		2025		2024
Accruing loans and leases past due 30-89 days	$	22,303	$	17,007	$	14,913	$	22,303	$	14,913
Accruing loans and leases past due 90 days or more	$	1,917	$	1,109	$	1,353	$	1,917	$	1,353
Nonaccrual loans and leases	$	7,878	$	9,060	$	14,563	$	7,878	$	14,563
Other real estate owned	$	383	$	560	$	170	$	383	$	170
Nonperforming loans and other real estate owned	$	10,178	$	10,729	$	16,086	$	10,178	$	16,086
Total nonperforming assets	$	13,087	$	13,631	$	18,978	$	13,087	$	18,978
Gross charge-offs	$	2,928	$	3,241	$	6,091	$	6,169	$	9,283
Recoveries	$	1,230	$	1,394	$	1,414	$	2,624	$	3,084
Net charge-offs/(recoveries)	$	1,698	$	1,847	$	4,677	$	3,545	$	6,199


Non-GAAP Reconciliations	Three Months Ended June 30,
	2025		2024
($in thousands, except EPS)
Income before Income Taxes	$	22,826	$	13,582
Provision for credit losses		1,950		2,966
Provision for unfunded commitments		100		(300	)
Pre-tax, Pre-provision Income	$	24,876	$	16,248


Non-GAAP Reconciliations	Six Months Ended June 30,
	2025		2024
($ in thousands, except EPS)
Income before Income Taxes	$	46,603	$	26,711
Provision for credit losses		3,900		4,766
Provision for unfunded commitments		100		(300	)
Pre-tax, Pre-provision Income	$	50,603	$	31,177


CONSOLIDATED BALANCE SHEETS (Dollar amounts in thousands, except per share data)

	June 30,			December 31,
	2025			2024
	(unaudited)
ASSETS
Cash and due from banks	$	97,265		$	93,526
Federal funds sold		853			820
Securities available-for-sale		1,169,956			1,195,990
Loans:
Commercial		2,222,015			2,196,351
Residential		987,738			967,386
Consumer		681,538			668,058
		3,891,291			3,831,795
(Less) plus:
Net deferred loan costs		5,272			5,346
Allowance for credit losses		(47,087	)		(46,732	)
		3,849,476			3,790,409
Restricted stock		17,528			17,555
Accrued interest receivable		25,888			26,934
Premises and equipment, net		79,741			81,508
Bank-owned life insurance		130,072			128,766
Goodwill		98,229			100,026
Other intangible assets		18,545			21,545
Other real estate owned		383			523
Other assets		115,033			102,746
TOTAL ASSETS	$	5,602,969		$	5,560,348

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Non-interest-bearing	$	859,699		$	859,014
Interest-bearing:
Certificates of deposit exceeding the FDIC insurance limits		143,780			144,982
Other interest-bearing deposits		3,659,410			3,714,918
		4,662,889			4,718,914
Short-term borrowings		149,512			187,057
FHLB advances		122,677			28,120
Other liabilities		80,223			77,216
TOTAL LIABILITIES		5,015,301			5,011,307

Shareholders’ equity
Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-16,190,157 in 2025 and 16,165,023 in 2024
Outstanding shares-11,850,645 in 2025 and 11,842,539 in 2024		2,020			2,018
Additional paid-in capital		146,391			145,927
Retained earnings		712,271			687,366
Accumulated other comprehensive income/(loss)		(118,234	)		(132,285	)
Less: Treasury shares at cost-4,339,512 in 2025 and 4,322,484 in 2024		(154,780	)		(153,985	)
TOTAL SHAREHOLDERS’ EQUITY		587,668			549,041
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	5,602,969		$	5,560,348


CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Dollar amounts in thousands, except per share data)

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2025			2024		2025			2024
						(unaudited)
INTEREST INCOME:
Loans, including related fees	$	64,775		$	51,459	$	128,387		$	101,511
Securities:
Taxable		5,915			5,833		11,917			11,764
Tax-exempt		2,622			2,601		5,226			5,204
Other		865			878		1,679			1,695
TOTAL INTEREST INCOME		74,177			60,771		147,209			120,174
INTEREST EXPENSE:
Deposits		18,495			19,694		36,694			37,425
Short-term borrowings		1,398			959		3,091			1,935
Other borrowings		1,613			824		2,778			2,600
TOTAL INTEREST EXPENSE		21,506			21,477		42,563			41,960
NET INTEREST INCOME		52,671			39,294		104,646			78,214
Provision for credit losses		1,950			2,966		3,900			4,766
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES		50,721			36,328		100,746			73,448
NON-INTEREST INCOME:
Trust and financial services		1,490			1,318		2,883			2,652
Service charges and fees on deposit accounts		7,554			6,730		15,139			13,437
Other service charges and fees		256			286		572			509
Securities gains (losses), net		(3	)		—		(3	)		—
Interchange income		180			135		394			314
Loan servicing fees		326			414		492			683
Gain on sales of mortgage loans		430			299		655			475
Other		148			723		760			1,266
TOTAL NON-INTEREST INCOME		10,381			9,905		20,892			19,336
NON-INTEREST EXPENSE:
Salaries and employee benefits		19,689			17,380		38,937			34,710
Occupancy expense		2,472			2,201		5,148			4,560
Equipment expense		4,587			4,312		9,092			8,456
FDIC Expense		795			501		1,545			1,163
Other		10,733			8,257		20,313			17,184
TOTAL NON-INTEREST EXPENSE		38,276			32,651		75,035			66,073
INCOME BEFORE INCOME TAXES		22,826			13,582		46,603			26,711
Provision for income taxes		4,240			2,213		9,611			4,418
NET INCOME		18,586			11,369		36,992			22,293
OTHER COMPREHENSIVE INCOME (LOSS)
Change in unrealized gains/(losses) on securities, net of reclassifications and taxes		2,946			3,535		14,046			(7,561	)
Change in funded status of post retirement benefits, net of taxes		2			74		5			147
COMPREHENSIVE INCOME (LOSS)	$	21,534		$	14,978	$	51,043		$	14,879
PER SHARE DATA
Basic and Diluted Earnings per Share	$	1.57		$	0.96	$	3.12		$	1.89
Weighted average number of shares outstanding (in thousands)		11,851			11,814		11,847			11,809

The MIL Network –

July 23, 2025

MIL-OSI Africa: Financing Agreements to Strengthen Education in Mauritania and Chad

Source: APO

.

The Governments of Mauritania and Chad today signed funding agreements for the Regional Engagement for Learning and Collaboration in Education (RELANCE) Project, supported by the World Bank and the Federal Republic of Germany, for a total of $137 million.

This ambitious project aims to transform education systems in both countries by strengthening sector governance and expanding access to flexible and inclusive learning pathways. It targets more than 850,000 young people, half of whom are girls, while promoting access to learners with special needs.

In a regional context of sustained demographic growth, disparities in access to education, and increasing demand for job-relevant skills, RELANCE offers a collaborative and integrated approach. It builds on ongoing efforts to strengthen education systems while introducing regional mechanisms for coordination, resource sharing, and innovation.

The project includes the establishment of a Regional Institute of Education in Nouakchott to strengthen executive capacity in the education sector, drive applied research, and inform policy through data and evidence. Supported by the Association of African Universities, the institute is positioned to become a center of academic excellence for both countries, fostering structured, long-term collaboration and knowledge exchange.

“The signing of the financing agreements for the RELANCE Sahel project reflects our collective commitment to building a resilient, educated, and forward-looking Sahel,” said Sid’Ahmed Bouh, Minister of Economy and Finance.

The initiative includes the creation of a regional Open School in each country, designed to meet the needs of young people outside the traditional education circuits, especially in areas where access to education remains limited. This hybrid system will combine digital learning, face-to-face support and professional training.

“The Regional Open School is a concrete response to the educational realities of our country. It will allow thousands of young people, often far from traditional structures, to have access to adapted learning paths that bring skills and hope,” said Dr. Aboubakar Assidick Tchoroma, Minister of National Education and Civic Promotion of Chad.

The project also benefits from significant financial support from the Federal Republic of Germany, through KfW, under the Sahel and West Africa Coast Multi-Donor Trust Fund. This partnership reflects a shared commitment to enhanced regional cooperation.

“RELANCE reflects an ambitious and pragmatic regional approach. By supporting this initiative, Germany reaffirms its willingness to support Sahel countries in their efforts to build more inclusive education systems that are better grounded in local realities,” said H.E. Dr. Florian Reindel, Ambassador of the Federal Republic of Germany to Mauritania.

The World Bank is supporting participating countries through a strategic partnership that combines technical support with long-term financing. RELANCE builds on the achievements of existing national projects, such as the Basic Education Sector Support Project (PASEB II) in Mauritania and the Project to Improve Learning Outcomes in Basic Education (PARAEB) in Chad, while introducing a unique regional dimension.

“Shaping minds is about charting the path to a brighter future. Like a carefully planted seed, an ambitious education policy carries the promise of progress. The RELANCE project thus reflects our shared commitment to making education a transformative force in Mauritania and Chad, by training informed, empowered generations ready to take on the challenges of tomorrow,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa.

Designed as an open regional platform, the project will be open to other Sahel countries interested in joining. It marks an important step towards building a more integrated Sahelian educational space capable of meeting the aspirations of a dynamic and committed youth.

Distributed by APO Group on behalf of The World Bank Group.

MIL OSI Africa –

July 23, 2025

Category: Banking

Breaking down data silos for better security

WHAT is SIEM?

Empowering security teams to do more

What are indicators of compromise?

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Modernised aid budget will focus on impact, value for money and transparency

Minister for Development Baroness Chapman said:

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