Economy – Page 748 – NewzIntel.com

MIL-OSI: Synchronoss Technologies Announces First Quarter 2025 Earnings Call Date

Source: GlobeNewswire (MIL-OSI)

BRIDGEWATER, N.J., April 22, 2025 (GLOBE NEWSWIRE) — Synchronoss Technologies Inc. (“Synchronoss” or the “Company”) (Nasdaq: SNCR), a global leader and innovator in Personal Cloud platforms, will hold a conference call on Tuesday, May 6, 2025 at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss its financial results for the first quarter ended March 31, 2025. Financial results will be issued in a press release prior to the call.

Synchronoss management will host the presentation, followed by a question-and-answer period.

Date: Tuesday, May 6, 2025
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Dial-In Number: 877-451-6152 (domestic) or 201-389-0879 (international)
Conference ID: 13753247

The conference call will be broadcast live here and via the Investor Relations section of Synchronoss’ website.

About Synchronoss
Synchronoss Technologies (Nasdaq: SNCR), a global leader in personal Cloud solutions, empowers service providers to establish secure and meaningful connections with their subscribers. Our SaaS Cloud platform simplifies onboarding processes and fosters subscriber engagement, resulting in enhanced revenue streams, reduced expenses, and faster time-to-market. Millions of subscribers trust Synchronoss to safeguard their most cherished memories and important digital content. Explore how our Cloud-focused solutions redefine the way you connect with your digital world at www.synchronoss.com.

Media Relations Contact:
Domenick Cilea
Springboard
dcilea@springboardpr.com

Investor Relations Contact:
Ryan Gardella
ICR for Synchronoss
SNCRIR@icrinc.com

The MIL Network –

April 23, 2025

MIL-OSI: Western New England Bancorp, Inc. Reports Results for Three Months Ended March 31, 2025 and Declares Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

WESTFIELD, Mass., April 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 months ended March 31, 2025. The Company reported net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. On a linked quarter basis, net income was $2.3 million, or $0.11 per diluted share, compared to net income of $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 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 May 21, 2025 to shareholders of record on May 7, 2025.

In addition, the Company announced that its Board of Directors authorized a new stock repurchase plan (the “2025 Plan”), pursuant to which the Company may repurchase up to 1.0 million shares of the Company’s common stock, or approximately 4.8% of the Company’s outstanding common stock as of today. The 2025 Plan will commence upon the completion of the Company’s existing share repurchase plan (the “2024 Plan”). The 2024 Plan was approved by the Board of Directors on May 21, 2024, and as of March 31, 2025, there were 265,609 shares of common stock available for repurchase under the 2024 Plan.

James C. Hagan, President and Chief Executive Officer, commented, “I am pleased to report the results for the first quarter of 2025. Our strong, diversified core deposit base and our disciplined approach to managing our funding costs have resulted in an increase in net interest income for the third consecutive quarter. The net interest margin increased eight basis points to 2.49% compared to the preceding quarter. We will continue to proactively manage our funding costs and benefit from our liability sensitive balance sheet to support net interest margin growth. In the first quarter, core deposits increased $70.2 million, or 4.5%, and represented 70.0% of total deposits while the loan-to-deposit ratio decreased to 89.3%. During the same period, average funding costs decreased four basis points.

“We continue to focus on extending credit within our markets and servicing the needs of our existing customer base while ensuring new opportunities present the appropriate levels of risk and return. Consistent with our prudent credit culture, we continue to proactively identify and manage credit risk within the loan portfolio. Our asset quality remains strong, with nonaccrual loans at 0.29% of total loans as of March 31, 2025.

“The Company is considered to be well-capitalized, as defined by regulators and internal Company targets, and we remain disciplined in our capital management strategies. We continue to believe that buying back shares represents a valuable use of the Company’s capital. Today, we announced the 2025 Plan, which will commence upon the completion of the 2024 Plan. Our stock repurchase programs are an integral element of our capital management strategies. As such, we believe that repurchasing common stock enhances shareholder value. We are pleased to be able to continue to return value to shareholders through share repurchases.”

Hagan concluded, “Our commitment to strong capital and liquidity levels gives us a solid foundation to take advantage of opportunities in the markets we serve and to enhance shareholder value in the long term.”

Key Highlights:

Loans and Deposits

Total gross loans increased $9.3 million, or 0.4%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 76.7% of total assets, at March 31, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $8.1 million, or 1.0%, and an increase in commercial and industrial loans of $4.7 million, or 2.2%. These increases were partially offset by a decrease in commercial real estate loans of $3.0 million, or 0.3%, and a decrease in consumer loans of $526,000, or 12.0%.

At March 31, 2025, total deposits of $2.3 billion increased $66.0 million, or 2.9%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $70.2 million, or 4.5%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.0% of total deposits, at March 31, 2025. Time deposits decreased $4.3 million, or 0.6%, from $703.6 million at December 31, 2024 to $699.3 million at March 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at March 31, 2025 and at December 31, 2024. The loan-to-deposit ratio decreased from 91.5% at December 31, 2024 to 89.3% at March 31, 2025.

Liquidity

The Company’s liquidity position remains strong with solid core deposit relationships, cash, unencumbered securities, a diversified deposit base and access to diversified borrowing sources. At March 31, 2025, the Company had $1.1 billion in immediately available liquidity, compared to $665.6 million in uninsured deposits, or 28.6% of total deposits, representing a coverage ratio of 171.5%.

Uninsured deposits of the Bank’s customers are eligible for FDIC pass-through insurance if the customer opens an IntraFi Insured Cash Sweep account or a reciprocal time deposit through the Certificate of Deposit Account Registry System. IntraFi allows for up to $250.0 million per customer of pass-through FDIC insurance, which would more than cover each of the Bank’s deposit customers if such customer desired to have such pass-through insurance.

Allowance for Credit Losses and Credit Quality

At March 31, 2025, the allowance for credit losses was $19.7 million, or 0.95% 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 327.1% and 362.9% at March 31, 2025 and December 31, 2024, respectively. At March 31, 2025, nonaccrual loans totaled $6.0 million, or 0.29% 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 $4.5 million, or 0.22% of total loans, at March 31, 2025. At March 31, 2025 and December 31, 2024, the Company did not have any other real estate owned.

Net Interest Margin

The net interest margin increased eight basis points from 2.41% for the three months ended December 31, 2024 to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, increased eight basis points from 2.43% for the three months ended December 31, 2024, compared to 2.51% for the three months ended March 31, 2025.

Stock Repurchase Program

On May 21, 2024, the Board of Directors authorized the 2024 Plan under which the Company may repurchase up to 1.0 million shares of its common stock, or approximately 4.6%, of the Company’s then-outstanding shares of common stock. During the three months ended March 31, 2025, the Company repurchased 206,709 shares of common stock under the 2024 Plan, with an average price per share of $9.12. As of March 31, 2025, there were 265,609 shares of common stock available for repurchase under the 2024 Plan.

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 common stock, or approximately 4.8% of the Company’s outstanding shares as of the date the 2025 Plan was announced. Repurchases under the 2025 Plan will commence upon the completion of the 2024 Plan.

The repurchase of shares under the stock repurchase program is administered through an independent broker. The shares of common stock repurchased under both the 2024 Plan and the 2025 Plan have been and will continue to be, as applicable, 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 both the 2024 Plan and 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

At March 31, 2025, the Company’s book value per share was $11.44, compared to $11.30 at December 31, 2024, while tangible book value per share, a non-GAAP financial measure, increased $0.15, or 1.4%, from $10.63 at December 31, 2024 to $10.78 at March 31, 2025. See pages 16-17 for the related tangible book value calculation and a reconciliation of GAAP to non-GAAP financial measures.

Net Income for the Three Months Ended March 31, 2025 Compared to the Three Months Ended December 31, 2024.

For the three months ended March 31, 2025, the Company reported a decrease in net income of $985,000, or 30.0%, from $3.3 million, or $0.16 per diluted share, for the three months ended December 31, 2024, to $2.3 million, or $0.11 per diluted share. Net interest income increased $261,000, or 1.7%, the provision for credit losses increased $904,000, non-interest income decreased $495,000, or 15.2%, and non-interest expense increased $258,000, or 1.7%. Return on average assets and return on average equity were 0.35% and 3.94%, respectively, for the three months ended March 31, 2025, compared to 0.49% and 5.48%, respectively, for the three months ended December 31, 2024.

Net Interest Income and Net Interest Margin

On a sequential quarter basis, net interest income, our primary driver of revenues, increased $261,000, or 1.7%, to $15.5 million for the three months ended March 31, 2025, from $15.3 million for the three months ended December 31, 2024. The increase in net interest income was primarily due to a decrease in interest expense of $410,000, or 3.1%, partially offset by a decrease in interest income of $149,000, or 0.5%.

The net interest margin increased eight basis points from 2.41% for the three months ended December 31, 2024 to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, increased eight basis points from 2.43% for the three months ended December 31, 2024, compared to 2.51% for the three months ended March 31, 2025.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, was 4.56% for the three months ended March 31, 2025, compared to 4.52% for the three months ended December 31, 2024. The average loan yield, without the impact of tax-equivalent adjustments, was 4.89% for the three months ended March 31, 2025, compared to 4.86% for the three months ended December 31, 2024. During the three months ended March 31, 2025, average interest-earning assets increased $12.7 million, or 0.5% to $2.5 billion, primarily due to an increase in average loans of $10.7 million, or 0.5%, and an increase in average securities of $3.9 million, or 1.1%.

The average cost of total funds, including non-interest bearing accounts and borrowings, decreased four basis points from 2.20% for the three months ended December 31, 2024 to 2.16% for the three months ended March 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 10 basis points to 1.08% for the three months ended March 31, 2025, from 0.98% for the three months ended December 31, 2024. The average cost of time deposits decreased 20 basis points from 4.31% for the three months ended December 31, 2024, to 4.11% for the three months ended March 31, 2025. The average cost of borrowings, including subordinated debt, was 5.04% for the three months ended December 31, 2024 and for the three months ended March 31, 2025. Average demand deposits, an interest-free source of funds, decreased $9.6 million, or 1.6%, from $579.2 million, or 25.6% of total average deposits, for the three months ended December 31, 2024, to $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025.

Provision for (Reversal of) Credit Losses

During the three months ended March 31, 2025, the Company recorded a provision for credit losses of $142,000, compared to a reversal of credit losses of $762,000 during the three months ended December 31, 2024. The increase was primarily due to changes in the most recent macroeconomic forecast. The provision for credit losses was also 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. Management will continue to monitor macroeconomic variables related to the interest rate environment, changing tariff policies and concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment.

During the three months ended March 31, 2025, the Company recorded net charge-offs of $29,000, compared to net recoveries of $128,000 for the three months ended December 31, 2024.

Non-Interest Income

On a sequential quarter basis, non-interest income decreased $495,000, or 15.2%, to $2.8 million for the three months ended March 31, 2025, from $3.3 million for the three months ended December 31, 2024. During the three months ended March 31, 2025, service charges and fees on deposits decreased $17,000, or 0.7%, to $2.3 million from the three months ended December 31, 2024. Income from bank-owned life insurance (“BOLI”) decreased $13,000, or 2.7%, from the three months ended December 31, 2024 to $473,000 for the three months ended March 31, 2025. During the three months ended March 31, 2025, the Company reported a gain of $7,000 from mortgage banking activities, compared to a loss of $11,000 during the three months ended December 31, 2024. During the three months ended March 31, 2025, the Company reported unrealized losses on marketable equity securities of $5,000, compared to unrealized losses of $9,000, during the three months ended December 31, 2024. During the three months ended December 31, 2024, the Company reported gains on non-marketable equity investments of $300,000 and did not have comparable income during the three months ended March 31, 2025. During the three months ended December 31, 2024, the Company reported $187,000 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 March 31, 2025, non-interest expense increased $258,000, or 1.7%, to $15.2 million from $14.9 million for the three months ended December 31, 2024. Occupancy expense increased $156,000, or 12.4%, primarily due to snow removal costs of $143,000. Advertising expense increased $119,000, or 38.4%, professional fees increased $75,000, or 15.9%, FDIC insurance expense increased $42,000, or 10.8%, and software related expenses increased $17,000, or 2.6%. These increases were partially offset by a decrease in furniture and equipment expense of $18,000, or 3.6%, a decrease in data processing expense of $18,000, or 2.0%, a decrease in debit card processing and ATM network costs of $16,000, or 2.7%, a decrease in salaries and related benefits of $16,000, or 0.2%, and a decrease in other non-interest expense of $83,000, or 5.8%.

For the three months ended March 31, 2025 and the three months ended December 31, 2024, the efficiency ratio was 83.0% and 80.6%, respectively. For the three months ended March 31, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 83.0% compared to 81.9% for the three months ended December 31, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by higher expenses and lower non-interest income during the three months ended March 31, 2025 compared to the three months ended December 31, 2024. 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 16-17 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 March 31, 2025 was $664,000, with an effective tax rate of 22.4%, compared to $1.1 million, with an effective tax rate of 24.6%, for the three months ended December 31, 2024.

Net Income for the Three Months Ended March 31, 2025 Compared to the Three Months Ended March 31, 2024.

The Company reported net income of $2.3 million, or $0.11 per diluted share, for the three months ended March 31, 2025, compared to net income of $3.0 million, or $0.14 per diluted share, for the three months ended March 31, 2024. Net interest income increased $188,000, or 1.2%, provision for credit losses increased $692,000, non-interest income increased $85,000, or 3.2%, and non-interest expense increased $402,000, or 2.7%, during the same period. Return on average assets and return on average equity were 0.35% and 3.94%, respectively, for the three months ended March 31, 2025, compared to 0.47% and 5.04%, respectively, for the three months ended March 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $188,000, or 1.2%, to $15.5 million, for the three months ended March 31, 2025, from $15.3 million for the three months ended March 31, 2024. The increase in net interest income was due to an increase in interest and dividend income of $1.8 million, or 6.9%, partially offset by an increase in interest expense of $1.6 million, or 14.6%. The increase in interest expense was primarily due to an increase in average interest-bearing deposits of $156.1 million, or 9.9%, and an increase in the average cost of interest-bearing deposit accounts of 29 basis points from the three months ended March 31, 2024 to the three months ended March 31, 2025. As a result, the net interest margin decreased from 2.57% for the three months ended March 31, 2024, to 2.49% for the three months ended March 31, 2025. The net interest margin, on a tax-equivalent basis, was 2.51% for the three months ended March 31, 2025, compared to 2.59% for the three months ended March 31, 2024.

The average yield on interest-earning assets, without the impact of tax-equivalent adjustments, increased 11 basis points from 4.45% for the three months ended March 31, 2024 to 4.56% for the three months ended March 31, 2025. The average loan yield, without the impact of tax-equivalent adjustments, was 4.89% for the three months ended March 31, 2025, compared to 4.82% for the three months ended March 31, 2024. During the three months ended March 31, 2025, average interest-earning assets increased $126.6 million, or 5.3%, to $2.5 billion, primarily due to an increase in average loans of $51.8 million, or 2.6%, an increase in average short-term investments, consisting of cash and cash equivalents, of $66.7 million, an increase in average securities of $5.9 million, or 1.6%, and an increase in average other investments of $2.3 million, or 18.6%.

The average cost of total funds, including non-interest bearing accounts and borrowings, increased 19 basis points from 1.97% for the three months ended March 31, 2024, to 2.16% for the three months ended March 31, 2025. The average cost of core deposits, which the Company defines as all deposits except time deposits, increased 32 basis points from 0.76% for the three months ended March 31, 2024 to 1.08% for the three months ended March 31, 2025. The average cost of time deposits decreased one basis point from 4.12% for the three months ended March 31, 2024 to 4.11% for the three months ended March 31, 2025. The average cost of borrowings, including subordinated debt, increased 13 basis points from 4.91% for the three months ended March 31, 2024 to 5.04% for the three months ended March 31, 2025. Average demand deposits, an interest-free source of funds, increased $11.9 million, or 2.1%, from $557.7 million, or 26.1% of total average deposits, for the three months ended March 31, 2024, to $569.6 million, or 24.8% of total average deposits, for the three months ended March 31, 2025.

Provision for (Reversal of) Credit Losses

During the three months ended March 31, 2025, the Company recorded a provision for credit losses of $142,000, compared to a reversal of credit losses of $550,000 during the three months ended March 31, 2024. The increase was primarily due to changes in the most recent macroeconomic forecast. The provision for credit losses was also 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. Management will continue to monitor macroeconomic variables related to the interest rate environment, the continued discussion on tariffs and the concerns of an economic downturn. Management believes it is appropriately reserved for the current economic environment.

During the three months ended March 31, 2025, the Company recorded net charge-offs of $29,000, compared to net recoveries of $67,000 for the three months ended March 31, 2024.

Non-Interest Income

Non-interest income increased $85,000, or 3.2%, from $2.7 million, for the three months ended March 31, 2024 to $2.8 million for the three months ended March 31, 2025, primarily due to a $65,000, or 2.9%, increase in service charges and fees and an increase in income from BOLI of $20,000, or 4.4%.

Non-Interest Expense

Non-interest expense increased $402,000, or 2.7%, from $14.8 million for the three months ended March 31, 2024 to $15.2 million for the three months ended March 31, 2025. Salaries and benefits increased $169,000, or 2.0%, advertising expense increased $80,000, or 22.9%, occupancy expense increased $49,000, or 3.6%, debit card processing and ATM network costs increased $25,000, or 4.5%, FDIC insurance expense increased $21,000, or 5.1%, data processing expense increased $20,000, or 2.3%, furniture and equipment expense increased $3,000, or 0.6%, and other non-interest expense increased $98,000, or 7.8%. These increases were partially offset by a decrease in software related expenses of $40,000, or 5.7%, and a decrease in professional fees of $23,000, or 4.0%.

For the three months ended March 31, 2025 and the three months ended March 31, 2024, the efficiency ratio was 83.0% and 82.0%, respectively. For the three months ended March 31, 2025, the adjusted efficiency ratio, a non-GAAP financial measure, was 83.0% compared to 82.0% for the three months ended March 31, 2024. The increases in the efficiency ratio and the adjusted efficiency ratio were driven by higher expenses during the three months ended March 31, 2025 compared to the three months ended March 31, 2024. See pages 16-17 for the efficiency ratio calculation and a reconciliation of GAAP to non-GAAP financial measures.

Income Tax Provision

For the three months ended March 31, 2025, income tax expense was $664,000, with an effective tax rate of 22.4%, compared to $827,000, with an effective tax rate of 21.8%, for the three months ended March 31, 2024.

Balance Sheet

At March 31, 2025, total assets were $2.7 billion, an increase of $56.2 million, or 2.1%, from December 31, 2024. The increase in total assets was primarily due to an increase in total gross loans of $9.3 million, or 0.4%, an increase in cash and cash equivalents of $44.1 million, or 66.4%, and an increase in investment securities of $3.6 million, or 1.0%.

Investments

At March 31, 2025, the investment securities portfolio totaled $369.8 million, or 13.6% of total assets, compared to $366.1 million, or 13.8% of total assets, at December 31, 2024. At March 31, 2025, the Company’s available-for-sale securities portfolio, recorded at fair market value, increased $7.1 million, or 4.4%, from $160.7 million at December 31, 2024 to $167.8 million. The held-to-maturity securities portfolio, recorded at amortized cost, decreased $3.4 million, or 1.7%, from $205.0 million at December 31, 2024 to $201.6 million at March 31, 2025.

At March 31, 2025, the Company reported unrealized losses on the available-for-sale securities portfolio of $27.8 million, or 14.2% 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 March 31, 2025, the Company reported unrealized losses on the held-to-maturity securities portfolio of $35.8 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 March 31, 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”) 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 $9.3 million, or 0.4%, from $2.1 billion, or 77.9% of total assets, at December 31, 2024 to $2.1 billion, or 76.7% of total assets, at March 31, 2025. The increase in total gross loans was primarily driven by an increase in residential real estate loans, including home equity loans, of $8.1 million, or 1.0%, and an increase in commercial and industrial loans of $4.7 million, or 2.2%. These increases were partially offset by a decrease in commercial real estate loans of $3.0 million, or 0.3%, and a decrease in consumer loans of $526,000, or 12.0%.

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

	March 31, 2025		December 31, 2024
	(Dollars in thousands)

Commercial real estate loans:
Non-owner occupied	$	881,105	$	880,828
Owner-occupied		191,582		194,904
Total commercial real estate loans		1,072,687		1,075,732

Residential real estate loans:
Residential		659,984		653,802
Home equity		123,804		121,857
Total residential real estate loans		783,788		775,659

Commercial and industrial loans		216,368		211,656

Consumer loans		3,865		4,391
Total gross loans		2,076,708		2,067,438
Unamortized premiums and net deferred loans fees and costs		2,853		2,751
Total loans	$	2,079,561	$	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 $4.5 million, or 0.22% of total loans, at March 31, 2025, compared to $5.0 million, or 0.24% of total loans at December 31, 2024. At March 31, 2025, nonaccrual loans totaled $6.0 million, or 0.29% of total loans, compared to $5.4 million, or 0.26% of total loans, at December 31, 2024. At March 31, 2025 and December 31, 2024, there were no loans 90 or more days past due and still accruing interest. Total nonaccrual assets totaled $6.0 million, or 0.22% of total assets, at March 31, 2025, compared to $5.4 million, or 0.20% of total assets, at December 31, 2024. At March 31, 2025 and December 31, 2024, the Company did not have any other real estate owned.

At March 31, 2025, the allowance for credit losses was $19.7 million, or 0.95% of total loans and 327.1% 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 $2.1 million, or 5.5%, from $38.4 million, or 1.9% of total loans, at December 31, 2024 to $36.3 million, or 1.7% of total loans, at March 31, 2025.

Our commercial real estate portfolio is comprised of diversified property types and primarily within our geographic footprint. At March 31, 2025, the commercial real estate portfolio totaled $1.1 billion, and represented 51.7% of total loans. Of the $1.1 billion, $881.1 million, or 82.1%, was categorized as non-owner occupied commercial real estate and represented 325.8% 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 March 31, 2025, total deposits were $2.3 billion and increased $66.0 million, or 2.9%, from December 31, 2024. Core deposits, which the Company defines as all deposits except time deposits, increased $70.2 million, or 4.5%, from $1.6 billion, or 68.9% of total deposits, at December 31, 2024, to $1.6 billion, or 70.0% of total deposits, at March 31, 2025. Non-interest-bearing deposits increased $24.4 million, or 4.3%, to $590.0 million, and represent 25.3% of total deposits, money market accounts increased $45.7 million, or 6.9%, to $707.2 million, savings accounts increased $9.8 million, or 5.4%, to $191.4 million and interest-bearing checking accounts decreased $9.6 million, or 6.4%, to $140.8 million.

Time deposits decreased $4.3 million, or 0.6%, from $703.6 million at December 31, 2024 to $699.3 million at March 31, 2025. Brokered time deposits, which are included in time deposits, totaled $1.7 million at March 31, 2025 and at December 31, 2024. The Company has experienced growth and movement in both money market accounts and non-interest-bearing deposits as a result of seasonal customer behaviors, relationship pricing, and the current interest rate environment, as opposed to time deposit specials or interest rate adjustments. 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 March 31, 2025, the Bank’s uninsured deposits totaled $665.6 million, or 28.6% 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:

	March 31, 2025		December 31, 2024		March 31, 2024
	(Dollars in thousands)
Core Deposits:
Demand accounts	$	589,996	$	565,620	$	559,928
Interest-bearing accounts		140,769		150,348		125,377
Savings accounts		191,398		181,618		190,732
Money market accounts		707,153		661,478		624,474
Total Core Deposits	$	1,629,316	$	1,559,064	$	1,500,511
Time Deposits:		699,277		703,583		643,236
Total Deposits:	$	2,328,593	$	2,262,647	$	2,143,747

FHLB and Subordinated Debt

At March 31, 2025, total borrowings decreased $860,000, or 0.7%, from $123.1 million at December 31, 2024 to $122.3 million. At March 31, 2025, short-term borrowings decreased $870,000, or 16.1%, to $4.5 million, compared to $5.4 million at December 31, 2024. Long-term borrowings were $98.0 million at March 31, 2025 and December 31, 2024. At March 31, 2025 and December 31, 2024, borrowings also consisted of $19.8 million in fixed-to-floating rate subordinated notes.

As of March 31, 2025, the Company had $447.5 million of additional borrowing capacity at the FHLB, $378.5 million of additional borrowing capacity under the Federal Reserve Bank Discount Window and $25.0 million of other unsecured lines of credit with correspondent banks.

Capital

At March 31, 2025, shareholders’ equity was $237.7 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 $2.6 million, cash dividends paid of $1.4 million, repurchase of shares at a cost of $2.0 million, partially offset by net income of $2.3 million. At March 31, 2025, total shares outstanding were 20,774,319. 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.

	March 31, 2025				December 31, 2024
	Company		Bank		Company		Bank
Total Capital (to Risk Weighted Assets)	14.28	%	13.56	%	14.38	%	13.65	%
Tier 1 Capital (to Risk Weighted Assets)	12.27	%	12.55	%	12.37	%	12.64	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)	12.27	%	12.55	%	12.37	%	12.64	%
Tier 1 Leverage Ratio (to Adjusted Average Assets)	9.06	%	9.26	%	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;
the duration and scope of potential pandemics, including the emergence of new variants and the response thereto;
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;
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
	March 31,			December 31,				September 30,				June 30,				March 31,
		2025				2024				2024				2024				2024
INTEREST AND DIVIDEND INCOME:
Loans	$	24,984			$	25,183			$	25,134			$	24,340			$	24,241
Securities		2,422				2,273				2,121				2,141				2,114
Other investments		191				214				189				148				136
Short-term investments		840				916				396				173				113
Total interest and dividend income		28,437				28,586				27,840				26,802				26,604

INTEREST EXPENSE:
Deposits		11,376				11,443				11,165				10,335				9,293
Short-term borrowings		54				60				71				186				283
Long-term debt		1,219				1,557				1,622				1,557				1,428
Subordinated debt		254				253				254				254				254
Total interest expense		12,903				13,313				13,112				12,332				11,258

Net interest and dividend income		15,534				15,273				14,728				14,470				15,346

PROVISION FOR (REVERSAL OF) CREDIT LOSSES		142				(762	)			941				(294	)			(550	)

Net interest and dividend income after provision for (reversal of) credit losses		15,392				16,035				13,787				14,764				15,896

NON-INTEREST INCOME:
Service charges and fees on deposits		2,284				2,301				2,341				2,341				2,219
Income from bank-owned life insurance		473				486				470				502				453
Unrealized (loss) gain on marketable equity securities		(5	)			(9	)			10				4				8
Gain (loss) on sale of mortgages		7				(11	)			246				–				–
Gain on non-marketable equity investments		–				300				–				987				–
Loss on disposal of premises and equipment		–				–				–				–				(6	)
Other income		–				187				74				–				–
Total non-interest income		2,759				3,254				3,141				3,834				2,674

NON-INTEREST EXPENSE:
Salaries and employees’ benefits		8,413				8,429				8,112				7,901				8,244
Occupancy		1,412				1,256				1,217				1,218				1,363
Furniture and equipment		487				505				483				483				484
Data processing		882				900				869				846				862
Software		659				642				612				566				699
Debit/ATM card processing expense		577				593				649				643				552
Professional fees		546				471				540				581				569
FDIC insurance		431				389				338				323				410
Advertising		429				310				271				339				349
Other		1,348				1,431				1,315				1,414				1,250
Total non-interest expense		15,184				14,926				14,406				14,314				14,782

INCOME BEFORE INCOME TAXES		2,967				4,363				2,522				4,284				3,788

INCOME TAX PROVISION		664				1,075				618				771				827
NET INCOME	$	2,303			$	3,288			$	1,904			$	3,513			$	2,961

Basic earnings per share	$	0.11			$	0.16			$	0.09			$	0.17			$	0.14
Weighted average shares outstanding		20,385,481				20,561,749				20,804,162				21,056,173				21,180,968
Diluted earnings per share	$	0.11			$	0.16			$	0.09			$	0.17			$	0.14
Weighted average diluted shares outstanding		20,514,098				20,701,276				20,933,833				21,163,762				21,271,323

Other Data:
Return on average assets (1)		0.35	%			0.49	%			0.29	%			0.55	%			0.47	%
Return on average equity (1)		3.94	%			5.48	%			3.19	%			6.03	%			5.04	%
Efficiency ratio		83.00	%			80.56	%			80.62	%			78.20	%			82.03	%
Adjusted efficiency ratio (2)		82.98	%			81.85	%			80.67	%			82.68	%			82.04	%
Net interest margin		2.49	%			2.41	%			2.40	%			2.42	%			2.57	%
Net interest margin, on a fully tax-equivalent basis		2.51	%			2.43	%			2.42	%			2.44	%			2.59	%
(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)

	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Cash and cash equivalents	$	110,579		$	66,450		$	72,802		$	53,458		$	22,613
Securities available-for-sale, at fair value		167,800			160,704			155,889			135,089			138,362
Securities held to maturity, at amortized cost		201,557			205,036			213,266			217,632			221,242
Marketable equity securities, at fair value		414			397			252			233			222
Federal Home Loan Bank of Boston and other restricted stock – at cost		5,818			5,818			7,143			7,143			3,105

Loans		2,079,561			2,070,189			2,049,002			2,026,226			2,025,566
Allowance for credit losses		(19,669	)		(19,529	)		(19,955	)		(19,444	)		(19,884	)
Net loans		2,059,892			2,050,660			2,029,047			2,006,782			2,005,682

Bank-owned life insurance		77,529			77,056			76,570			76,100			75,598
Goodwill		12,487			12,487			12,487			12,487			12,487
Core deposit intangible		1,344			1,438			1,531			1,625			1,719
Other assets		71,864			73,044			71,492			75,521			76,206
TOTAL ASSETS	$	2,709,284		$	2,653,090		$	2,640,479		$	2,586,070		$	2,557,236

Total deposits	$	2,328,593		$	2,262,647		$	2,224,206		$	2,171,809		$	2,143,747
Short-term borrowings		4,520			5,390			4,390			6,570			11,470
Long-term debt		98,000			98,000			128,277			128,277			120,646
Subordinated debt		19,761			19,751			19,741			19,731			19,722
Securities pending settlement		2,093			8,622			2,513			102			–
Other liabilities		18,641			22,770			20,697			23,104			25,855
TOTAL LIABILITIES		2,471,608			2,417,180			2,399,824			2,349,593			2,321,440

TOTAL SHAREHOLDERS’ EQUITY		237,676			235,910			240,655			236,477			235,796
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	2,709,284		$	2,653,090		$	2,640,479		$	2,586,070		$	2,557,236

WESTERN NEW ENGLAND BANCORP, INC. AND SUBSIDIARIES Other Data (Dollars in thousands, except per share data) (Unaudited)

	Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
		2025			2024			2024			2024			2024
Shares outstanding at end of period		20,774,319			20,875,713			21,113,408			21,357,849			21,627,690

Operating results:
Net interest income	$	15,534		$	15,273		$	14,728		$	14,470		$	15,346
Provision for (reversal of) credit losses		142			(762	)		941			(294	)		(550	)
Non-interest income		2,759			3,254			3,141			3,834			2,674
Non-interest expense		15,184			14,926			14,406			14,314			14,782
Income before income provision for income taxes		2,967			4,363			2,522			4,284			3,788
Income tax provision		664			1,075			618			771			827
Net income		2,303			3,288			1,904			3,513			2,961

Performance Ratios:
Net interest margin		2.49	%		2.41	%		2.40	%		2.42	%		2.57	%
Net interest margin, on a fully tax-equivalent basis		2.51	%		2.43	%		2.42	%		2.44	%		2.59	%
Interest rate spread		1.74	%		1.63	%		1.60	%		1.66	%		1.85	%
Interest rate spread, on a fully tax-equivalent basis		1.76	%		1.65	%		1.62	%		1.67	%		1.86	%
Return on average assets		0.35	%		0.49	%		0.29	%		0.55	%		0.47	%
Return on average equity		3.94	%		5.48	%		3.19	%		6.03	%		5.04	%
Efficiency ratio (GAAP)		83.00	%		80.56	%		80.62	%		78.20	%		82.03	%
Adjusted efficiency ratio (non-GAAP)⁽¹⁾		82.98	%		81.85	%		80.67	%		82.68	%		82.04	%

Per Common Share Data:
Basic earnings per share	$	0.11		$	0.16		$	0.09		$	0.17		$	0.14
Earnings per diluted share		0.11			0.16			0.09			0.17			0.14
Cash dividend declared		0.07			0.07			0.07			0.07			0.07
Book value per share		11.44			11.30			11.40			11.07			10.90
Tangible book value per share (non-GAAP)⁽²⁾		10.78			10.63			10.73			10.41			10.25

Asset Quality:
30-89 day delinquent loans	$	2,459		$	3,694		$	3,059		$	3,270		$	3,000
90 days or more delinquent loans		2,027			1,301			1,253			2,280			1,716
Total delinquent loans		4,486			4,995			4,312			5,550			4,716
Total delinquent loans as a percentage of total loans		0.22	%		0.24	%		0.21	%		0.27	%		0.23	%
Nonaccrual loans	$	6,014		$	5,381		$	4,873		$	5,845		$	5,837
Nonaccrual loans as a percentage of total loans		0.29	%		0.26	%		0.24	%		0.29	%		0.29	%
Nonaccrual assets as a percentage of total assets		0.22	%		0.20	%		0.18	%		0.23	%		0.23	%
Allowance for credit losses as a percentage of nonaccrual loans		327.05	%		362.93	%		409.50	%		332.66	%		340.65	%
Allowance for credit losses as a percentage of total loans		0.95	%		0.94	%		0.97	%		0.96	%		0.98	%
Net loan charge-offs (recoveries)	$	29		$	(128	)	$	98		$	10		$	(67	)
Net loan charge-offs (recoveries) as a percentage of average loans		0.00	%		(0.01	)%		0.00	%		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 March 31, 2025, December 31, 2024 and March 31, 2024 and reflects the average yield on interest-earning assets and average cost of interest-bearing liabilities for the periods indicated.

	Three Months Ended
	March 31, 2025									December 31, 2024								March 31, 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)	$	2,073,486		$	25,105			4.91	%	$	2,062,822	$	25,311			4.88	%	$	2,021,713	$	24,351			4.84	%
Securities(2)		365,371			2,422			2.69			361,476		2,273			2.50			359,493		2,114			2.37
Other investments		14,819			191			5.23			15,924		214			5.35			12,494		136			4.38
Short-term investments(3)		76,039			840			4.48			76,795		916			4.75			9,386		113			4.84
Total interest-earning assets		2,529,715			28,558			4.58			2,517,017		28,714			4.54			2,403,086		26,714			4.47
Total non-interest-earning assets		156,733									155,538								154,410
Total assets	$	2,686,448								$	2,672,555							$	2,557,496

LIABILITIES AND EQUITY:
Interest-bearing liabilities
Interest-bearing checking accounts	$	140,960			250			0.72		$	149,231		264			0.70		$	135,559		234			0.69
Savings accounts		183,869			40			0.09			179,122		38			0.08			186,125		39			0.08
Money market accounts		704,215			3,968			2.29			654,965		3,553			2.16			626,267		2,587			1.66
Time deposit accounts		702,748			7,118			4.11			700,324		7,588			4.31			627,699		6,433			4.12
Total interest-bearing deposits		1,731,792			11,376			2.66			1,683,642		11,443			2.70			1,575,650		9,293			2.37
Short-term borrowings and long-term debt		122,786			1,527			5.04			147,748		1,870			5.04			160,802		1,965			4.91
Interest-bearing liabilities		1,854,578			12,903			2.82			1,831,390		13,313			2.89			1,736,452		11,258			2.61
Non-interest-bearing deposits		569,638									579,168								557,711
Other non-interest-bearing liabilities		25,464									23,380								27,078
Total non-interest-bearing liabilities		595,102									602,548								584,789
Total liabilities		2,449,680									2,433,938								2,321,241
Total equity		236,768									238,617								236,255
Total liabilities and equity	$	2,686,448								$	2,672,555							$	2,557,496
Less: Tax-equivalent adjustment(2)					(121	)							(128	)							(110	)
Net interest and dividend income				$	15,534							$	15,273							$	15,346
Net interest rate spread(4)								1.74	%							1.63	%							1.85	%
Net interest rate spread, on a tax-equivalent basis(5)								1.76	%							1.65	%							1.86	%
Net interest margin(6)								2.49	%							2.41	%							2.57	%
Net interest margin, on a tax-equivalent basis(7)								2.51	%							2.43	%							2.59	%
Ratio of average interest-earning assets to average interest-bearing liabilities								136.40	%							137.44	%							138.39	%
(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 tax-equivalent 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
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
	(Dollars in thousands)

Loan interest (no tax adjustment)	$	24,984		$	25,183		$	25,134		$	24,340		$	24,241
Tax-equivalent adjustment		121			128			119			114			110
Loan interest (tax-equivalent basis)	$	25,105		$	25,311		$	25,253		$	24,454		$	24,351

Net interest income (no tax adjustment)	$	15,534		$	15,273		$	14,728		$	14,470		$	15,346
Tax equivalent adjustment		121			128			119			114			110
Net interest income (tax-equivalent basis)	$	15,655		$	15,401		$	14,847		$	14,584		$	15,456

Average interest-earning assets	$	2,529,715		$	2,517,017		$	2,441,236		$	2,400,633		$	2,403,086
Net interest margin (no tax adjustment)		2.49	%		2.41	%		2.40	%		2.42	%		2.57	%
Net interest margin, tax-equivalent		2.51	%		2.43	%		2.42	%		2.44	%		2.59	%

Book Value per Share (GAAP)	$	11.44		$	11.30		$	11.40		$	11.07		$	10.90
Non-GAAP adjustments:
Goodwill		(0.60	)		(0.60	)		(0.59	)		(0.58	)		(0.58	)
Core deposit intangible		(0.06	)		(0.07	)		(0.08	)		(0.08	)		(0.07	)
Tangible Book Value per Share (non-GAAP)	$	10.78		$	10.63		$	10.73		$	10.41		$	10.25

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

Efficiency Ratio:
Non-interest Expense (GAAP)	$	15,184		$	14,926		$	14,406		$	14,314		$	14,782

Net Interest Income (GAAP)	$	15,534		$	15,273		$	14,728		$	14,470		$	15,346

Non-interest Income (GAAP)	$	2,759		$	3,254		$	3,141		$	3,834		$	2,674
Non-GAAP adjustments:
Unrealized losses (gains) on marketable equity securities		5			9			(10	)		(4	)		(8	)
Gain on non-marketable equity investments		–			(300	)		–			(987	)		–
Loss on disposal of premises and equipment		–			–			–			–			6
Non-interest Income for Adjusted Efficiency Ratio (non-GAAP)	$	2,764		$	2,963		$	3,131		$	2,843		$	2,672
Total Revenue for Adjusted Efficiency Ratio (non-GAAP)	$	18,298		$	18,236		$	17,859		$	17,313		$	18,018

Efficiency Ratio (GAAP)		83.00	%		80.56	%		80.62	%		78.20	%		82.03	%

Adjusted Efficiency Ratio (Non-interest Expense (GAAP)/Total Revenue for Adjusted Efficiency Ratio (non-GAAP))		82.98	%		81.85	%		80.67	%		82.68	%		82.04	%

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 –

April 23, 2025

MIL-OSI: Hanmi Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, April 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 first quarter of 2025.

Net income for the first quarter of 2025 was $17.7 million, or $0.58 per diluted share, unchanged from the fourth quarter of 2024. The return on average assets for the first quarter of 2025 was 0.94% and the return on average equity was 8.92%, compared with a return on average assets of 0.93% and a return on average equity of 8.89% for the fourth quarter of 2024.

CEO Commentary
“Our team delivered strong results in the first quarter with solid operating performance across all of our business lines,” said Bonnie Lee, President and Chief Executive Officer. “We achieved our third consecutive quarter of net interest margin expansion, up 11 basis points to 3.02%, primarily driven by lower funding costs.”

“Deposits increased 3% driven by new commercial accounts and contributions from our newly opened branches, a testament to our core relationship-based banking model. Loan production was solid, fueled by healthy originations in residential mortgages and our SBA business. Importantly, we maintained our strong credit quality, and continued to effectively manage our operating expenses, resulting in our best quarterly efficiency ratio since the fourth quarter of 2023.”

“Overall, our first quarter results were well-balanced and reflected continued growth and positive momentum, including the successful opening of a new branch in the Atlanta region. Despite elevated macroeconomic uncertainty, our team’s focus, discipline, and commitment to providing exceptional service and market leading products positions us well to deliver long-term value to our shareholders.”

First Quarter 2025 Highlights:

First quarter net income was $17.7 million, or $0.58 per diluted share, unchanged from fourth quarter of 2024. Preprovision net revenues increased 5.9% from the prior quarter reflecting growth in net interest income, an expanding net interest margin, a solid contribution from fee-based activities, and disciplined expense management.
Loans receivable were $6.28 billion at March 31, 2025, up 0.5% from the end of the fourth quarter of 2024; loan production for the first quarter was $345.9 million, with a weighted average interest rate of 7.35%, compared with loan production for the fourth quarter of $339.0 million, with a weighted average interest rate of 7.37%.
Deposits were $6.62 billion at March 31, 2025, up 2.9% from the end of the fourth quarter of 2024; noninterest-bearing demand deposits at March 31, 2025 were 31.2% of total deposits.
Net interest income for the first quarter was $55.1 million, up 3.1% from the fourth quarter of 2024. Net interest margin (taxable equivalent) increased 11 basis points to 3.02%; the average yield on loans declined two basis points to 5.95%, while the cost of interest-bearing deposits fell 27 basis points to 3.69%.
Credit loss expense for the first quarter was $2.7 million, an increase from $0.9 million for the prior quarter. The allowance for credit losses increased $0.5 million to $70.6 million at March 31, 2025, or 1.12% of loans. For the first quarter, net loan charge-offs were $1.9 million, or 0.13% of average loans (annualized).
Nonperforming loans were $35.6 million at March 31, 2025, or 0.57% of loans. Criticized loans decreased to $164.9 million, as special mention loans decreased to $118.4 million, while classified loans increased to $46.5 million.

For more information about Hanmi, please see the Q1 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
	March 31,			December 31,			September 30,			June 30,			March 31,			Q1-25			Q1-25
	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24

Net income	$	17,672		$	17,695		$	14,892		$	14,451		$	15,164		$	(23	)	$	2,508
Net income per diluted common share	$	0.58		$	0.58		$	0.49		$	0.48		$	0.50		$	–		$	0.08

Assets	$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046		$	51,110		$	216,989
Loans receivable	$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840		$	30,812		$	104,349
Deposits	$	6,619,475		$	6,435,776		$	6,403,221		$	6,329,340		$	6,376,060		$	183,699		$	243,415

Return on average assets		0.94	%		0.93	%		0.79	%		0.77	%		0.81	%		0.01			0.13
Return on average stockholders’ equity		8.92	%		8.89	%		7.55	%		7.50	%		7.90	%		0.03			1.02

Net interest margin		3.02	%		2.91	%		2.74	%		2.69	%		2.78	%		0.11			0.24
Efficiency ratio ⁽¹⁾		55.69	%		56.79	%		59.98	%		62.24	%		62.42	%		-1.10			-6.73

Tangible common equity to tangible assets ⁽²⁾		9.59	%		9.41	%		9.42	%		9.19	%		9.23	%		0.18			0.36
Tangible common equity per common share ⁽²⁾	$	24.49		$	23.88		$	24.03		$	22.99		$	22.86			0.61			1.63


⁽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 first quarter was $55.1 million, up 3.1% from $53.4 million for the fourth quarter of 2024. The increase was primarily due to a decrease in deposit interest expense from a decrease in deposit rates. The average rate paid on interest-bearing deposits for the fourth quarter decreased 27 basis points to 3.69% from 3.96% for the fourth quarter of 2024, primarily due to the decrease in the average cost of time deposits to 4.17% for the first quarter from 4.55% for the fourth quarter of 2024. The average balance of interest-bearing deposits increased to $4.46 billion for the first quarter of 2025 from $4.36 billion for the fourth quarter. The average balance of time deposits was $2.35 billion for the first quarter of 2025, essentially unchanged from the fourth quarter. The average balance of noninterest-bearing deposits for the first quarter decreased to $1.90 billion from $1.97 billion for the fourth quarter of 2024. Net interest margin (taxable equivalent) for the first quarter was 3.02%, up 11 basis points from 2.91% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
Net Interest Income	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24

Interest and fees on loans receivable ⁽¹⁾	$	90,887	$	91,545	$	92,182	$	90,752	$	91,674	-0.7	%	-0.9	%
Interest on securities		6,169		5,866		5,523		5,238		4,955	5.2	%	24.5	%
Dividends on FHLB stock		360		360		356		357		361	0.0	%	-0.3	%
Interest on deposits in other banks		1,841		2,342		2,356		2,313		2,604	-21.4	%	-29.3	%
Total interest and dividend income	$	99,257	$	100,113	$	100,417	$	98,660	$	99,594	-0.9	%	-0.3	%

Interest on deposits		40,559		43,406		47,153		46,495		45,638	-6.6	%	-11.1	%
Interest on borrowings		2,024		1,634		1,561		1,896		1,655	23.9	%	22.3	%
Interest on subordinated debentures		1,582		1,624		1,652		1,649		1,646	-2.6	%	-3.9	%
Total interest expense		44,165		46,664		50,366		50,040		48,939	-5.4	%	-9.8	%
Net interest income	$	55,092	$	53,449	$	50,051	$	48,620	$	50,655	3.1	%	8.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and Interest-bearing Liabilities	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Q1-25 vs. Q4-24		Q1-25 vs. Q1-24
Loans receivable ⁽¹⁾	$	6,189,531	$	6,103,264	$	6,112,324	$	6,089,440	$	6,137,888	1.4	%	0.8	%
Securities		1,001,499		998,313		986,041		979,671		969,520	0.3	%	3.3	%
FHLB stock		16,385		16,385		16,385		16,385		16,385	0.0	%	0.0	%
Interest-bearing deposits in other banks		176,028		204,408		183,027		180,177		201,724	-13.9	%	-12.7	%
Average interest-earning assets	$	7,383,443	$	7,322,370	$	7,297,777	$	7,265,673	$	7,325,517	0.8	%	0.8	%

Demand: interest-bearing	$	79,369	$	79,784	$	83,647	$	85,443	$	86,401	-0.5	%	-8.1	%
Money market and savings		2,037,224		1,934,540		1,885,799		1,845,870		1,815,085	5.3	%	12.2	%
Time deposits		2,345,346		2,346,363		2,427,737		2,453,154		2,507,830	0.0	%	-6.5	%
Average interest-bearing deposits		4,461,939		4,360,687		4,397,183		4,384,467		4,409,316	2.3	%	1.2	%
Borrowings		179,444		141,604		143,479		169,525		162,418	26.7	%	10.5	%
Subordinated debentures		130,718		130,567		130,403		130,239		130,088	0.1	%	0.5	%
Average interest-bearing liabilities	$	4,772,101	$	4,632,858	$	4,671,065	$	4,684,231	$	4,701,822	3.0	%	1.5	%

Average Noninterest Bearing Deposits
Demand deposits – noninterest bearing	$	1,895,953	$	1,967,789	$	1,908,833	$	1,883,765	$	1,921,189	-3.7	%	-1.3	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended										Yield/Rate Change
Average Yields	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25	Q1-25
and Rates	2025		2024		2024		2024		2024		vs. Q4-24	vs. Q1-24
Loans receivable ⁽¹⁾	5.95	%	5.97	%	6.00	%	5.99	%	6.00	%	-0.02	-0.05
Securities ⁽²⁾	2.49	%	2.38	%	2.27	%	2.17	%	2.07	%	0.11	0.42
FHLB stock	8.92	%	8.75	%	8.65	%	8.77	%	8.87	%	0.17	0.05
Interest-bearing deposits in other banks	4.24	%	4.56	%	5.12	%	5.16	%	5.19	%	-0.32	-0.95
Interest-earning assets	5.45	%	5.45	%	5.48	%	5.46	%	5.47	%	0.00	-0.02

Interest-bearing deposits	3.69	%	3.96	%	4.27	%	4.27	%	4.16	%	-0.27	-0.47
Borrowings	4.57	%	4.59	%	4.33	%	4.50	%	4.10	%	-0.02	0.47
Subordinated debentures	4.84	%	4.97	%	5.07	%	5.07	%	5.06	%	-0.13	-0.22
Interest-bearing liabilities	3.75	%	4.01	%	4.29	%	4.30	%	4.19	%	-0.26	-0.44

Net interest margin (taxable equivalent basis)	3.02	%	2.91	%	2.74	%	2.69	%	2.78	%	0.11	0.24

Cost of deposits	2.59	%	2.73	%	2.97	%	2.98	%	2.90	%	-0.14	-0.31

⁽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 first quarter was $2.7 million, compared with $0.9 million for the fourth quarter of 2024. 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 first quarter increased $0.3 million, or 5.0%, to $7.7 million from $7.4 million for the fourth quarter of 2024. The increase was primarily due to a $0.6 million increase on gains from the sale of SBA loans. Gains on sales of SBA loans were $2.0 million for the first quarter of 2025, compared with $1.4 million for the fourth quarter of 2024. The volume of SBA loans sold for the first quarter increased to $32.2 million from $21.6 million for the fourth quarter of 2024, while trade premiums were 7.82% for the first quarter of 2025 compared with 8.53% for the fourth quarter. Mortgage loans sold for the first quarter were $10.0 million, with a premium of 2.50%, compared with $18.3 million and 1.96% for the fourth quarter. Gains on mortgage loans sold were $0.2 million for the first quarter, compared with $0.3 million for the fourth quarter.

	For the Three Months Ended (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
Noninterest Income	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Service charges on deposit accounts	$	2,217	$	2,192	$	2,311	$	2,429	$	2,450	1.1	%	-9.5	%
Trade finance and other service charges and fees		1,396		1,364		1,254		1,277		1,414	2.3	%	-1.3	%
Servicing income		732		668		817		796		712	9.6	%	2.8	%
Bank-owned life insurance income		309		316		320		638		304	-2.2	%	1.6	%
All other operating income		897		1,037		1,008		908		928	-13.5	%	-3.3	%
Service charges, fees & other		5,551		5,577		5,710		6,048		5,808	-0.5	%	-4.4	%

Gain on sale of SBA loans		2,000		1,443		1,544		1,644		1,482	38.6	%	35.0	%
Gain on sale of mortgage loans		175		337		324		365		443	-48.1	%	-60.5	%
Gain on sale of bank premises		–		–		860		–		–	0.0	%	0.0	%
Total noninterest income	$	7,726	$	7,357	$	8,438	$	8,057	$	7,733	5.0	%	-0.1	%

Noninterest expense for the first quarter increased $0.5 million to $35.0 million from $34.5 million for the fourth quarter of 2024. The increase was primarily due to a $1.6 million gain on the sale of an other-real-estate-owned property in the fourth quarter. Absent this gain, first quarter noninterest expense was down 3.2% sequentially due to decreases in professional fees, advertising and promotion, and other operating expenses, partially offset by a $0.5 million increase in salaries and benefits, which reflected seasonal first quarter increases. All other operating expenses decreased $0.7 million for the first quarter primarily due to the absence of a fourth quarter $0.5 million charge related to an SBA loan acquired in a previous acquisition. The efficiency ratio improved during the first quarter to 55.7%, compared with 56.8% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)												Percentage Change
	Mar 31,			Dec 31,			Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025			2024			2024		2024		2024		vs. Q4-24		vs. Q1-24
Noninterest Expense
Salaries and employee benefits	$	20,972		$	20,498		$	20,851	$	20,434	$	21,585	2.3	%	-2.8	%
Occupancy and equipment		4,450			4,503			4,499		4,348		4,537	-1.2	%	-1.9	%
Data processing		3,787			3,800			3,839		3,686		3,551	-0.3	%	6.6	%
Professional fees		1,468			1,821			1,492		1,749		1,893	-19.4	%	-22.5	%
Supplies and communication		517			551			538		570		601	-6.2	%	-14.0	%
Advertising and promotion		585			821			631		669		907	-28.7	%	-35.5	%
All other operating expenses		3,175			3,847			2,875		3,251		3,160	-17.5	%	0.5	%
Subtotal		34,954			35,841			34,725		34,707		36,234	-2.5	%	-3.5	%

Branch consolidation expense		–			–			–		301		–	0.0	%	0.0	%
Other real estate owned expense (income)		41			(1,588	)		77		6		22	102.6	%	86.4	%
Repossessed personal property expense (income)		(11	)		281			278		262		189	-103.9	%	-105.8	%
Total noninterest expense	$	34,984		$	34,534		$	35,080	$	35,276	$	36,445	1.3	%	-4.0	%

Hanmi recorded a provision for income taxes of $7.4 million for the first quarter of 2025, compared with $7.6 million for the fourth quarter of 2024, representing an effective tax rate of 29.6% and 30.1%, respectively.

Financial Position
Total assets at March 31, 2025 increased 0.7%, or $51.1 million, to $7.73 billion from $7.68 billion at December 31, 2024. The increase reflected a $30.4 million increase in loans and a $24.2 million increase in cash, offset partially by a $7.6 million decrease in prepaid expenses and other assets.

Loans receivable, before allowance for credit losses, were $6.28 billion at March 31, 2025, up from $6.25 billion at December 31, 2024.

Loans held-for-sale were $11.8 million at March 31, 2025, up from $8.6 million at December 31, 2024. At the end of the first quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans.

	As of (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Loan Portfolio
Commercial real estate loans	$	3,975,651	$	3,949,622	$	3,932,088	$	3,888,505	$	3,878,677	0.7	%	2.5	%
Residential/consumer loans		979,536		951,302		939,285		954,209		970,362	3.0	%	0.9	%
Commercial and industrial loans		854,406		863,431		879,092		802,372		774,851	-1.0	%	10.3	%
Equipment finance		472,596		487,022		507,279		531,273		553,950	-3.0	%	-14.7	%
Loans receivable		6,282,189		6,251,377		6,257,744		6,176,359		6,177,840	0.5	%	1.7	%
Loans held for sale		11,831		8,579		54,336		10,467		3,999	37.9	%	195.8	%
Total	$	6,294,020	$	6,259,956	$	6,312,080	$	6,186,826	$	6,181,839	0.5	%	1.8	%

	As of
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
	2025		2024		2024		2024		2024
Composition of Loan Portfolio
Commercial real estate loans	63.1	%	63.1	%	62.3	%	62.9	%	62.7	%
Residential/consumer loans	15.6	%	15.2	%	14.9	%	15.4	%	15.7	%
Commercial and industrial loans	13.6	%	13.8	%	13.9	%	13.0	%	12.5	%
Equipment finance	7.5	%	7.8	%	8.0	%	8.5	%	9.0	%
Loans receivable	99.8	%	99.9	%	99.1	%	99.8	%	99.9	%
Loans held for sale	0.2	%	0.1	%	0.9	%	0.2	%	0.1	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

New loan production was $345.9 million for the first quarter of 2025 with an average rate of 7.35%, while payoffs were $125.1 million during the quarter at an average rate of 6.40%.

Commercial real estate loan production for the first quarter of 2025 was $146.6 million. Commercial and industrial loan production was $42.3 million, SBA loan production was $55.2 million, equipment finance production was $46.7 million, and residential mortgage loan production was $55.0 million.

	For the Three Months Ended (in thousands)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
New Loan Production
Commercial real estate loans	$	146,606		$	146,716		$	110,246		$	87,632		$	60,085
Residential/consumer loans		55,000			40,225			40,758			30,194			53,115
Commercial and industrial loans		42,344			60,159			105,086			59,007			50,789
Equipment finance		46,749			42,168			40,066			42,594			39,155
SBA loans		55,242			49,740			51,616			54,486			30,817
subtotal		345,941			339,008			347,772			273,913			233,961


Payoffs		(125,102	)		(137,933	)		(77,603	)		(148,400	)		(86,250	)
Amortization		(90,743	)		(60,583	)		(151,674	)		(83,640	)		(90,711	)
Loan sales		(42,193	)		(67,852	)		(43,868	)		(42,945	)		(55,321	)
Net line utilization		(53,901	)		(75,651	)		9,426			1,929			(4,150	)
Charge-offs & OREO		(3,190	)		(3,356	)		(2,668	)		(2,338	)		(2,123	)

Loans receivable-beginning balance		6,251,377			6,257,744			6,176,359			6,177,840			6,182,434
Loans receivable-ending balance	$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840

Deposits were $6.62 billion at the end of the first quarter of 2025, up $183.7 million, or 2.9%, from $6.44 billion at the end of the prior quarter. Driving the change was a $140.4 million increase in money market and savings deposits and a $72.8 million increase in time deposits, partially offset by a $30.0 million decrease in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 31.2% of total deposits at March 31, 2025 and the loan-to-deposit ratio was 94.9%.

	As of (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,066,659	$	2,096,634	$	2,051,790	$	1,959,963	$	1,933,060	-1.4	%	6.9	%
Demand: interest-bearing		80,790		80,323		79,287		82,981		87,374	0.6	%	-7.5	%
Money market and savings		2,073,943		1,933,535		1,898,834		1,834,797		1,859,865	7.3	%	11.5	%
Time deposits		2,398,083		2,325,284		2,373,310		2,451,599		2,495,761	3.1	%	-3.9	%
Total deposits	$	6,619,475	$	6,435,776	$	6,403,221	$	6,329,340	$	6,376,060	2.9	%	3.8	%

	As of
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
	2025		2024		2024		2024		2024
Composition of Deposit Portfolio
Demand: noninterest-bearing	31.2	%	32.6	%	32.0	%	31.0	%	30.3	%
Demand: interest-bearing	1.2	%	1.2	%	1.2	%	1.3	%	1.4	%
Money market and savings	31.3	%	30.0	%	29.7	%	29.0	%	29.2	%
Time deposits	36.3	%	36.2	%	37.1	%	38.7	%	39.1	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Stockholders’ equity at March 31, 2025 was $751.5 million, up $19.3 million from $732.2 million at December 31, 2024. The increase included $9.5 million in net income, net of dividends paid, for the first quarter. In addition, the increase in stockholders’ equity included a $10.4 million decrease in unrealized after-tax losses on securities available for sale, and a $0.3 million decrease in unrealized after-tax losses on cash flow hedges, due to changes in interest rates during the first quarter of 2025. Hanmi also repurchased 50,000 shares of common stock at a cost of $1.1 million, for an average share price of $22.49, during the quarter. At March 31, 2025, 1,180,500 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $740.5 million, or 9.59% of tangible assets at March 31, 2025 compared with $721.1 million, or 9.41% 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 March 31, 2025, Hanmi’s preliminary common equity tier 1 capital ratio was 12.13% and its total risk-based capital ratio was 15.29%, compared with 12.11% and 15.24%, respectively, at the end of the prior quarter.

	As of										Ratio Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25	Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24	vs. Q1-24
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital	15.29	%	15.24	%	15.03	%	15.24	%	15.20	%	0.05	0.09
Tier 1 risk-based capital	12.47	%	12.46	%	12.29	%	12.46	%	12.40	%	0.01	0.07
Common equity tier 1 capital	12.13	%	12.11	%	11.95	%	12.11	%	12.05	%	0.02	0.08
Tier 1 leverage capital ratio	10.67	%	10.63	%	10.56	%	10.51	%	10.36	%	0.04	0.31
Hanmi Bank
Total risk-based capital	14.48	%	14.43	%	14.27	%	14.51	%	14.50	%	0.05	-0.02
Tier 1 risk-based capital	13.35	%	13.36	%	13.23	%	13.47	%	13.44	%	-0.01	-0.09
Common equity tier 1 capital	13.35	%	13.36	%	13.23	%	13.47	%	13.44	%	-0.01	-0.09
Tier 1 leverage capital ratio	11.49	%	11.47	%	11.43	%	11.41	%	11.29	%	0.02	0.20

⁽¹⁾Preliminary ratios for March 31, 2025

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.28% of loans at the end of the first quarter of 2025, compared with 0.30% at the end of the prior quarter.

Criticized loans totaled $164.9 million at March 31, 2025, down from $165.3 million at the end of the fourth quarter of 2024. The $0.4 million decrease resulted from a $21.2 million decrease in special mention loans, partially offset by a $20.8 million increase in classified loans. The $21.2 million decrease in special mention loans included loan upgrades of $20.5 million and amortization/paydowns of $0.9 million, offset by additions of $0.2 million. The $20.8 million increase in classified loans resulted from $22.8 million of loan downgrades and $3.4 million of equipment financing downgrades. Loan downgrades were primarily the result of a $20.0 million syndicated commercial real estate office loan designated as nonaccrual during the first quarter of 2025. Additions were offset by $2.7 million of equipment financing charge-offs, $1.1 million of payoffs, $1.0 million of amortization/paydowns, $0.3 million of loan charge-offs and $0.3 million of loan upgrades.

Nonperforming loans were $35.6 million at March 31, 2025, up from $14.3 million at the end of the prior quarter. The $21.3 million increase primarily reflects additions of $26.1 million, offset by charge-offs of $3.0 million, pay-offs of $0.8 million, $0.9 million in paydowns, and loan upgrades of $0.1 million. Additions included $23.0 million of loans and $3.1 million of equipment financing agreements. Loan additions were driven primarily by the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025.

Nonperforming assets were $35.7 million at March 31, 2025, up from $14.4 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.46% at March 31, 2025, and 0.19% at the end of the prior quarter.

Gross charge-offs for the first quarter of 2025 were $3.2 million, compared with $3.4 million for the preceding quarter. Charge-offs included $2.8 million on equipment financing agreements. Recoveries of previously charged-off loans were $1.3 million in the first quarter of 2025, which included $0.8 million of recoveries on equipment financing agreements. As a result, there were $1.9 million of net charge-offs for the first quarter of 2025, compared to net recoveries of $0.1 million for the prior quarter.

The allowance for credit losses was $70.6 million at March 31, 2025, compared with $70.1 million at December 31, 2024. Specific allowances for loans increased $5.6 million because of a $6.2 million specific allowance on the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025, and collectively evaluated allowances decreased $5.2 million. The ratio of the allowance for credit losses to loans was 1.12% at March 31, 2025 and at the end of the prior quarter.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Q1-25			Q1-25
	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	17,312		$	18,454		$	15,027		$	13,844		$	15,839		$	(1,142	)	$	1,473
Delinquent loans to total loans		0.28	%		0.30	%		0.24	%		0.22	%		0.26	%		(0.02	)		0.02

Criticized loans:
Special mention	$	118,380		$	139,612		$	131,575		$	36,921		$	62,317		$	(21,232	)	$	56,063
Classified		46,519			25,683			28,377			33,945			23,670			20,836			22,849
Total criticized loans ⁽¹⁾	$	164,899		$	165,295		$	159,952		$	70,866		$	85,987		$	(396	)	$	78,912

Criticized loans to total loans		2.62	%		2.64	%		2.56	%		1.15	%		1.39	%		(0.02	)		1.23

Nonperforming assets:
Nonaccrual loans	$	35,459		$	14,272		$	15,248		$	19,245		$	14,025		$	21,187		$	21,434
Loans 90 days or more past due and still accruing		112			–			242			–			–			112			112
Nonperforming loans ⁽²⁾		35,571			14,272			15,490			19,245			14,025			21,299			21,546
Other real estate owned, net		117			117			772			772			117			–			–
Nonperforming assets ⁽³⁾	$	35,688		$	14,389		$	16,262		$	20,017		$	14,142		$	21,299		$	21,546

Nonperforming assets to assets ⁽²⁾		0.46	%		0.19	%		0.21	%		0.26	%		0.19	%		0.27			0.27
Nonperforming loans to total loans		0.57	%		0.23	%		0.25	%		0.31	%		0.23	%		0.34			0.34

⁽¹⁾Includes nonaccrual loans of $34.4 million, $13.4 million, $13.6 million, $18.4 million, and $14.0 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.
⁽²⁾Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
⁽³⁾Excludes repossessed personal property of $0.7 million, $0.6 million, $1.2 million, $1.2 million, and $1.3 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.

	As of or for the Three Months Ended (in thousands)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	70,147		$	69,163		$	67,729		$	68,270		$	69,462
Credit loss expense (recovery) on loans		2,396			855			2,312			1,248			404
Net loan (charge-offs) recoveries		(1,946	)		129			(878	)		(1,789	)		(1,596	)
Balance at end of period	$	70,597		$	70,147		$	69,163		$	67,729		$	68,270

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		0.13	%		-0.01	%		0.06	%		0.12	%		0.10	%
Allowance for credit losses to loans		1.12	%		1.12	%		1.11	%		1.10	%		1.11	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,074		$	1,984		$	2,010		$	2,297		$	2,474
Credit loss expense (recovery) on off-balance sheet items		325			90			(26	)		(287	)		(177	)
Balance at end of period	$	2,399		$	2,074		$	1,984		$	2,010		$	2,297

Unused commitments to extend credit	$	896,282		$	782,587		$	739,975		$	795,391		$	792,769

⁽¹⁾Annualized

Corporate Developments
On January 28, 2025, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2025 first quarter of $0.27 per share. Hanmi paid the dividend on February 26, 2025, to stockholders of record as of the close of business on February 10, 2025.

Earnings Conference Call
Hanmi Bank will host its first quarter 2025 earnings conference call today, April 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 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;
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 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)

	March 31,			December 31,			Percentage			March 31,			Percentage
	2025			2024			Change			2024			Change
Assets
Cash and due from banks	$	329,003		$	304,800			7.9	%	$	256,038			28.5	%
Securities available for sale, at fair value		907,011			905,798			0.1	%		872,190			4.0	%
Loans held for sale, at the lower of cost or fair value		11,831			8,579			37.9	%		3,999			195.8	%
Loans receivable, net of allowance for credit losses		6,211,592			6,181,230			0.5	%		6,109,570			1.7	%
Accrued interest receivable		23,536			22,937			2.6	%		23,032			2.2	%
Premises and equipment, net		20,866			21,404			-2.5	%		21,952			-4.9	%
Customers’ liability on acceptances		552			1,226			-55.0	%		161			242.9	%
Servicing assets		6,422			6,457			-0.5	%		6,890			-6.8	%
Goodwill and other intangible assets, net		11,031			11,031			0.0	%		11,074			-0.4	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		57,476			57,168			0.5	%		56,639			1.5	%
Prepaid expenses and other assets		133,330			140,910			-5.4	%		134,116			-0.6	%
Total assets	$	7,729,035		$	7,677,925			0.7	%	$	7,512,046			2.9	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,066,659		$	2,096,634			-1.4	%	$	1,933,060			6.9	%
Interest-bearing		4,552,816			4,339,142			4.9	%		4,443,000			2.5	%
Total deposits		6,619,475			6,435,776			2.9	%		6,376,060			3.8	%
Accrued interest payable		29,646			34,824			-14.9	%		38,007			-22.0	%
Bank’s liability on acceptances		552			1,226			-55.0	%		161			242.9	%
Borrowings		117,500			262,500			-55.2	%		172,500			-31.9	%
Subordinated debentures		130,799			130,638			0.1	%		130,165			0.5	%
Accrued expenses and other liabilities		79,578			80,787			-1.5	%		92,053			-13.6	%
Total liabilities		6,977,550			6,945,751			0.5	%		6,808,946			2.5	%

Stockholders’ equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		591,942			591,069			0.1	%		587,687			0.7	%
Accumulated other comprehensive income		(60,002	)		(70,723	)		15.2	%		(76,890	)		22.0	%
Retained earnings		360,289			350,869			2.7	%		326,526			10.3	%
Less treasury stock		(140,778	)		(139,075	)		-1.2	%		(134,257	)		-4.9	%
Total stockholders’ equity		751,485			732,174			2.6	%		703,100			6.9	%
Total liabilities and stockholders’ equity	$	7,729,035		$	7,677,925			0.7	%	$	7,512,046			2.9	%

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

	Three Months Ended
	March 31,		December 31,		Percentage			March 31,		Percentage
	2025		2024		Change			2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	90,887	$	91,545		-0.7	%	$	91,674		-0.9	%
Interest on securities		6,169		5,866		5.2	%		4,955		24.5	%
Dividends on FHLB stock		360		360		0.0	%		361		-0.3	%
Interest on deposits in other banks		1,841		2,342		-21.4	%		2,604		-29.3	%
Total interest and dividend income		99,257		100,113		-0.9	%		99,594		-0.3	%
Interest expense:
Interest on deposits		40,559		43,406		-6.6	%		45,638		-11.1	%
Interest on borrowings		2,024		1,634		23.9	%		1,655		22.3	%
Interest on subordinated debentures		1,582		1,624		-2.6	%		1,646		-3.9	%
Total interest expense		44,165		46,664		-5.4	%		48,939		-9.8	%
Net interest income before credit loss expense		55,092		53,449		3.1	%		50,655		8.8	%
Credit loss expense		2,721		945		187.9	%		227		1098.7	%
Net interest income after credit loss expense		52,371		52,504		-0.3	%		50,428		3.9	%
Noninterest income:
Service charges on deposit accounts		2,217		2,192		1.1	%		2,450		-9.5	%
Trade finance and other service charges and fees		1,396		1,364		2.3	%		1,414		-1.3	%
Gain on sale of Small Business Administration (“SBA”) loans		2,000		1,443		38.6	%		1,482		35.0	%
Other operating income		2,113		2,358		-10.4	%		2,387		-11.5	%
Total noninterest income		7,726		7,357		5.0	%		7,733		-0.1	%
Noninterest expense:
Salaries and employee benefits		20,972		20,498		2.3	%		21,585		-2.8	%
Occupancy and equipment		4,450		4,503		-1.2	%		4,537		-1.9	%
Data processing		3,787		3,800		-0.3	%		3,551		6.6	%
Professional fees		1,468		1,821		-19.4	%		1,893		-22.5	%
Supplies and communications		517		551		-6.2	%		601		-14.0	%
Advertising and promotion		585		821		-28.7	%		907		-35.5	%
Other operating expenses		3,205		2,540		26.2	%		3,371		-4.9	%
Total noninterest expense		34,984		34,534		1.3	%		36,445		-4.0	%
Income before tax		25,113		25,327		-0.8	%		21,716		15.6	%
Income tax expense		7,441		7,632		-2.5	%		6,552		13.6	%
Net income	$	17,672	$	17,695		-0.1	%	$	15,164		16.5	%

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

Weighted-average shares outstanding:
Basic		29,937,660		29,933,644					30,119,646
Diluted		30,058,248		30,011,773					30,119,646
Common shares outstanding		30,233,514		30,195,999					30,276,358

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

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 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⁾	$	6,189,531		$	90,887	5.95	%	$	6,103,264		$	91,545	5.97	%	$	6,137,888		$	91,674	6.00	%
Securities ⁽²⁾		1,001,499			6,169	2.49	%		998,313			5,866	2.38	%		969,520			4,955	2.07	%
FHLB stock		16,385			360	8.92	%		16,385			360	8.75	%		16,385			361	8.87	%
Interest-bearing deposits in other banks		176,028			1,841	4.24	%		204,408			2,342	4.56	%		201,724			2,604	5.19	%
Total interest-earning assets		7,383,443			99,257	5.45	%		7,322,370			100,113	5.45	%		7,325,517			99,594	5.47	%

Noninterest-earning assets:
Cash and due from banks		53,670							54,678							58,382
Allowance for credit losses		(69,648	)						(69,291	)						(69,106	)
Other assets		249,148							246,744							244,700

Total assets	$	7,616,613						$	7,554,501						$	7,559,493

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	79,369		$	27	0.14	%	$	79,784		$	26	0.13	%	$	86,401		$	30	0.14	%
Money market and savings		2,037,224			16,437	3.27	%		1,934,540			16,564	3.41	%		1,815,085			16,553	3.67	%
Time deposits		2,345,346			24,095	4.17	%		2,346,363			26,816	4.55	%		2,507,830			29,055	4.66	%
Total interest-bearing deposits		4,461,939			40,559	3.69	%		4,360,687			43,406	3.96	%		4,409,316			45,638	4.16	%
Borrowings		179,444			2,024	4.57	%		141,604			1,634	4.59	%		162,418			1,655	4.10	%
Subordinated debentures		130,718			1,582	4.84	%		130,567			1,624	4.97	%		130,088			1,646	5.06	%
Total interest-bearing liabilities		4,772,101			44,165	3.75	%		4,632,858			46,664	4.01	%		4,701,822			48,939	4.19	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,895,953							1,967,789							1,921,189
Other liabilities		144,654							162,064							164,524
Stockholders’ equity		803,905							791,790							771,958

Total liabilities and stockholders’ equity	$	7,616,613						$	7,554,501						$	7,559,493

Net interest income				$	55,092						$	53,449						$	50,655

Cost of deposits						2.59	%						2.73	%						2.90	%
Net interest spread (taxable equivalent basis)						1.70	%						1.44	%						1.28	%
Net interest margin (taxable equivalent basis)						3.02	%						2.91	%						2.78	%



⁽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.

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)

	March 31,			December 31,			September 30,			June 30,			March 31,
Hanmi Financial Corporation	2025			2024			2024			2024			2024
Assets	$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,048	)		(11,074	)
Tangible assets	$	7,718,004		$	7,666,894		$	7,701,268		$	7,575,299		$	7,500,972

Stockholders’ equity ⁽¹⁾	$	751,485		$	732,174		$	736,709		$	707,059		$	703,100
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,048	)		(11,074	)
Tangible stockholders’ equity ⁽¹⁾	$	740,454		$	721,143		$	725,678		$	696,011		$	692,026

Stockholders’ equity to assets		9.72	%		9.54	%		9.55	%		9.32	%		9.36	%
Tangible common equity to tangible assets ⁽¹⁾		9.59	%		9.41	%		9.42	%		9.19	%		9.23	%

Common shares outstanding		30,233,514			30,195,999			30,196,755			30,272,110			30,276,358
Tangible common equity per common share	$	24.49		$	23.88		$	24.03		$	22.99		$	22.86


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

Preprovision Net Revenues

Preprovision net revenues 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 revenues, management can better understand the Company’s true profitability and make more informed strategic decisions. Preprovision net revenues is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company’s revenue activities and operational efficiency, excluding unpredictable loan loss provisions.

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

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

											Amount Change
Hanmi Financial	March 31,		December 31,		September 30,		June 30,		March 31,		Q1-25		Q1-25
Corporation	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Net income	$	17,672	$	17,695	$	14,892	$	14,451	$	15,164
Add back:
Credit loss expense		2,721		945		2,286		961		227
Income tax expense		7,441		7,632		6,231		5,989		6,552
Preprovision net revenues	$	27,834	$	26,272	$	23,409	$	21,401	$	21,943	5.9	%	26.8	%

The MIL Network –

April 23, 2025

MIL-OSI: SiriusPoint Announces Date for First Quarter 2025 Earnings Release

Source: GlobeNewswire (MIL-OSI)

HAMILTON, Bermuda, April 22, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (NYSE: SPNT) (“SiriusPoint” or the “Company”) today announced that it is planning to release its first quarter 2025 financial results after the market close on Monday, May 5, 2025. The Company will also hold a webcast, which can also be accessed as a conference call, to discuss its financial results at 8:30 am (Eastern Time) on Tuesday May 6, 2025.

The webcast of the live conference call can be accessed by logging onto the Investor Relations section of the Company’s website at www.siriuspt.com. The online replay of the webcast will be available on the Company’s website immediately following the call.

The conference call can be accessed by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international) and asking for the SiriusPoint Ltd. First Quarter 2025 Earnings Call. A replay will be available at the conclusion of the call and can be accessed by dialing 1-844-512-2921, or for international callers 1-412-317-6671, and providing the passcode 13752221. The replay will be available until 11:59 pm (Eastern Time) on May 20, 2025.

About SiriusPoint

SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators within our Insurance & Services segment. With over $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Excellent) from AM Best, S&P and Fitch, and A3 from Moody’s. For more information, please visit www.siriuspt.com.

Contacts

Investor Relations
Liam Blackledge, SiriusPoint
liam.blackledge@siriuspt.com
+44 203 772 3082

Media
Sarah Hills, Rein4ce
sarah.hills@rein4ce.co.uk
+44 771 888 2011

The MIL Network –

April 23, 2025

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

Source: GlobeNewswire (MIL-OSI)

NYSE Ticker: NBHC

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

	For the quarter⁽¹⁾									For the quarter – adjusted⁽¹⁾⁽²⁾
	1Q25			4Q24			1Q24			1Q25			4Q24			1Q24
Net income ($000’s)	$	24,231		$	28,184		$	31,391		$	24,231		$	33,232		$	31,391
Earnings per share – diluted	$	0.63		$	0.73		$	0.82		$	0.63		$	0.86		$	0.82
Return on average assets		0.99	%		1.13	%		1.28	%		0.99	%		1.33	%		1.28	%
Return on average tangible assets⁽²⁾		1.09	%		1.23	%		1.39	%		1.09	%		1.44	%		1.39	%
Return on average equity		7.42	%		8.59	%		10.30	%		7.42	%		10.13	%		10.30	%
Return on average tangible common equity⁽²⁾		10.64	%		12.31	%		15.14	%		10.64	%		14.40	%		15.14	%

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

In announcing these results, Chief Executive Officer Tim Laney shared, “We delivered quarterly net income of $24.2 million and $0.63 of earnings per diluted share. The quarter’s results were negatively impacted by elevated provision primarily resulting from a loan charge-off involving suspected fraud by the borrower. Removing the impact of the fraud-related charge-off and a payroll tax credit benefit included in the quarter, earnings per share would have exceeded analysts’ median estimate for the quarter. It’s noteworthy that we delivered a return on tangible assets of 1.1% even in light of the charge-off. Further, past dues and non-performing loan ratios improved during the quarter. With a solid net interest margin of 3.93%, we drove 3.4% growth in our fully taxable equivalent net interest income over the same period last year.”

Mr. Laney added, “Our commitment to serve our clients, coupled with building a fortress balance sheet with strong capital, liquidity, and diversified sources of funding has led us to be recognized by Forbes as one of the best banks in the United States. Our Common Equity Tier 1 capital ratio totaled 13.6% and tangible book value per share grew $0.66 during the quarter to $25.94 per share. We have built our Bank to withstand uncertain and volatile times, and we continue to make meaningful investments in technology and drive shareholders returns.”

First Quarter 2025 Results
(All comparisons refer to the fourth quarter of 2024, except as noted)

Net income totaled $24.2 million or $0.63 per diluted share, compared to $28.2 million or $0.73 per diluted share. The first quarter’s results were impacted by $10.2 million of provision expense recorded primarily to cover a charge-off on one credit driven by suspected fraudulent activity by the borrower. The return on average tangible assets totaled 1.09%, compared to 1.23%, and the return on average tangible common equity totaled 10.64%, compared to 12.31%.

Net Interest Income
Fully taxable equivalent net interest income totaled $88.6 million, compared to $92.0 million, decreasing $3.4 million due to two fewer business days in the first quarter and a decrease of $37.9 million in average earning assets. The fully taxable equivalent net interest margin narrowed six basis points to 3.93%, driven by a 13 basis point decrease in earning asset yields, partially offset by an eight basis point improvement in the cost of funds.

Loans
Loans totaled $7.6 billion at March 31, 2025, compared to $7.8 billion. We generated quarterly loan fundings of $255.7 million, led by commercial loan fundings of $160.2 million. The first quarter weighted average rate on new loans at the time of origination was 7.3%, compared to the quarter’s weighted average yield of 6.4% on our loan portfolio.

Asset Quality and Provision for Credit Losses
The Company recorded $10.2 million of provision expense for credit losses during the first quarter, compared to $2.0 million. The current quarter’s provision expense was recorded primarily to cover the charge-off on one credit driven by suspected fraudulent activity by the borrower. Annualized net charge-offs totaled 0.80% of average total loans, compared to 0.11%. Non-performing loans decreased one basis point to 0.45% of total loans at March 31, 2025, and non-performing assets decreased one basis point to 0.46% of total loans and OREO at March 31, 2025. The allowance for credit losses as a percentage of loans totaled 1.18% at March 31, 2025, compared to 1.22% at December 31, 2024.

Deposits
Average total deposits decreased $111.6 million to $8.3 billion during the first quarter 2025, and average transaction deposits (defined as total deposits less time deposits) decreased $113.1 million to $7.2 billion. Transaction deposits on a spot basis grew $147.7 million to $7.4 billion at March 31, 2025. The loan to deposit ratio totaled 90.8% at March 31, 2025, compared to 94.1%. The mix of transaction deposits to total deposits was 87.4% at March 31, 2025, compared to 87.6%.

Non-Interest Income
Non-interest income totaled $15.4 million during the first quarter, compared to $11.1 million. Included in the prior quarter was $6.6 million of non-recurring loss on investment security sales. Mortgage banking income increased $1.0 million, compared to the prior quarter. Service charges and bank card fees decreased $0.7 million due to seasonality, and other non-interest income was $2.6 million lower due to lower SBA gains on sale and swap fee activity during the first quarter.

Non-Interest Expense
Non-interest expense decreased $2.5 million to $62.0 million during the first quarter. Salaries and benefits decreased $1.1 million primarily due to payroll tax credits realized in the first quarter. Data processing decreased $0.5 million, and professional services expense decreased $0.2 million driven by our continued disciplined expense management. Included within other non-interest expense in the prior quarter was $1.2 million of banking center consolidation-related expense. The fully taxable equivalent efficiency ratio was 57.7% at March 31, 2025, compared to 57.0%, excluding other intangible assets amortization and the prior quarter’s non-recurring loss on investment security sales.

Income tax expense decreased $0.9 million to $5.6 million, due to the first quarter’s lower pre-tax income. The effective tax rate was 18.8% for the first quarter, consistent with the prior quarter.

Capital
Capital ratios continue to be well in excess of federal bank regulatory agency “well capitalized” thresholds. The tier 1 leverage ratio totaled 10.89%, and the common equity tier 1 capital ratio totaled 13.61% at March 31, 2025. Shareholders’ equity increased $24.2 million to $1.3 billion at March 31, 2025, primarily driven by $13.1 million of growth in retained earnings from net income after covering the quarter’s dividend, and a $10.0 million improvement in accumulated other comprehensive loss due to changes in the interest rate environment.

Common book value per share increased $0.61 to $34.90 at March 31, 2025. Tangible common book value per share increased $0.66 to $25.94 driven by the quarter’s earnings after covering the quarterly dividend, and a $0.26 improvement in accumulated other comprehensive loss.

Year-Over-Year Review

(All comparisons refer to the first quarter of 2024, except as noted)

Net income totaled $24.2 million, or $0.63 per diluted share, compared to net income of $31.4 million, or $0.82 per diluted share in the same period prior year. The decrease compared to the prior year was largely driven by higher provision expense of $10.2 million. Fully taxable equivalent pre-provision net revenue increased $1.4 million to $42.0 million. The return on average tangible assets totaled 1.09%, compared to 1.39%, and the return on average tangible common equity was 10.64%, compared to 15.14%.

Fully taxable equivalent net interest income increased $2.9 million to $88.6 million. Average earning assets increased $12.6 million, including average loan growth of $29.3 million and average investment securities growth of $22.6 million. The fully taxable equivalent net interest margin widened 15 basis points to 3.93%, as an 18 basis point decrease in the cost of funds outpaced a three basis point decrease in earning asset yields. Average interest bearing liabilities increased $35.8 million due to higher average deposit balances, and the cost of funds totaled 2.07%, compared to 2.25% in the same period prior year.

Loans outstanding totaled $7.6 billion as of March 31, 2025, increasing $77.2 million or 1.0%. New loan fundings over the trailing twelve months totaled $1.6 billion, led by commercial fundings of $1.1 billion.

The Company recorded $10.2 million of provision expense for credit losses, compared to no provision expense for credit losses in the first quarter of 2024. The current quarter’s provision expense was recorded primarily to cover the charge-off on one credit driven by suspected fraudulent activity by the borrower. Annualized net charge-offs totaled 0.80% of average total loans, compared to minimal net charge-offs in the same period prior year. Non-performing loans decreased two basis points to 0.45% of total loans at March 31, 2025, and non-performing assets decreased seven basis points to 0.46% of total loans and OREO at March 31, 2025. The allowance for credit losses as a percentage of loans totaled 1.18% at March 31, 2025, compared to 1.29% at March 31, 2024.

Average total deposits increased $41.5 million or 0.5% to $8.3 billion, and average transaction deposits decreased $4.5 million. The mix of transaction deposits to total deposits was 87.4% at March 31, 2025, compared to 88.3%.

Non-interest income totaled $15.4 million, compared to $17.7 million, decreasing primarily due to $2.3 million lower other non-interest income driven by timing of SBA loan gain on sales and swap fee income activity, and a $0.6 million gain from the sale of a banking center building included in the first quarter of 2024.

Non-interest expense decreased $0.8 million to $62.0 million. Salaries and benefits decreased $2.2 million primarily due to payroll tax credits realized during the first quarter 2025, which was partially offset by increases in data processing and occupancy and equipment, driven by investments in technology.

Income tax expense totaled $5.6 million, a decrease of $1.9 million, driven by lower pre-tax income. The effective tax rate was 18.8%, compared to 19.3% in the first quarter of 2024.

Conference Call
Management will host a conference call to review the results at 11:00 a.m. Eastern Time on Wednesday, April 23, 2025. Interested parties may listen to this call by dialing (877) 400-0505 using the participant passcode of 7036929 and asking for the NBHC Q1 2025 Earnings Call. The earnings release and a link to the replay of the call will be available on the Company’s website at www.nationalbankholdings.com by visiting the investor relations area.

About National Bank Holdings Corporation
National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise, delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 90 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust and wealth management business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Texas, Utah, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.

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

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

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

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

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

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


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

	For the three months ended
	March 31,		December 31,			March 31,
	2025		2024			2024
Total interest and dividend income	$	129,963	$	136,086		$	131,732
Total interest expense		43,272		45,955			47,702
Net interest income		86,691		90,131			84,030
Taxable equivalent adjustment		1,910		1,874			1,692
Net interest income FTE⁽¹⁾		88,601		92,005			85,722
Provision expense for credit losses		10,200		1,979			—
Net interest income after provision for credit losses FTE⁽¹⁾		78,401		90,026			85,722
Non-interest income:
Service charges		4,118		4,359			4,391
Bank card fees		4,194		4,671			4,578
Mortgage banking income		3,315		2,296			2,655
Other non-interest income		3,749		6,375			6,070
Loss on security sales		—		(6,582	)		—
Total non-interest income		15,376		11,119			17,694
Non-interest expense:
Salaries and benefits		34,362		35,459			36,520
Occupancy and equipment		10,837		10,193			9,941
Professional fees		1,423		1,599			1,646
Data processing		4,401		4,900			4,066
Other non-interest expense		9,017		10,418			8,653
Other intangible assets amortization		1,977		1,977			2,008
Total non-interest expense		62,017		64,546			62,834

Income before income taxes FTE⁽¹⁾		31,760		36,599			40,582
Taxable equivalent adjustment		1,910		1,874			1,692
Income before income taxes		29,850		34,725			38,890
Income tax expense		5,619		6,541			7,499
Net income	$	24,231	$	28,184		$	31,391
Earnings per share – basic	$	0.63	$	0.73		$	0.82
Earnings per share – diluted		0.63		0.73			0.82
Common stock dividend		0.29		0.29			0.27

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


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

	March 31, 2025			December 31, 2024			March 31, 2024
ASSETS
Cash and cash equivalents	$	246,298		$	127,848		$	292,931
Investment securities available-for-sale		634,376			527,547			685,666
Investment securities held-to-maturity		706,912			533,108			570,850
Non-marketable securities		76,203			76,462			73,439
Loans		7,646,296			7,751,143			7,569,052
Allowance for credit losses		(90,192	)		(94,455	)		(97,607	)
Loans, net		7,556,104			7,656,688			7,471,445
Loans held for sale		11,885			24,495			14,065
Other real estate owned		615			662			4,064
Premises and equipment, net		204,567			196,773			168,956
Goodwill		306,043			306,043			306,043
Intangible assets, net		54,489			58,432			64,212
Other assets		301,378			299,635			315,805
Total assets	$	10,098,870		$	9,807,693		$	9,967,476
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Non-interest bearing demand deposits	$	2,215,313		$	2,213,685		$	2,292,917
Interest bearing demand deposits		1,337,905			1,411,860			1,427,856
Savings and money market		3,812,312			3,592,312			3,801,013
Total transaction deposits		7,365,530			7,217,857			7,521,786
Time deposits		1,058,677			1,020,036			995,976
Total deposits		8,424,207			8,237,893			8,517,762
Securities sold under agreements to repurchase		20,749			18,895			19,577
Long-term debt		54,588			54,511			54,278
Federal Home Loan Bank advances		80,000			50,000			—
Other liabilities		190,018			141,319			144,029
Total liabilities		8,769,562			8,502,618			8,735,646
Shareholders’ equity:
Common stock		515			515			515
Additional paid in capital		1,168,433			1,167,431			1,163,773
Retained earnings		521,939			508,864			454,211
Treasury stock		(301,531	)		(301,694	)		(306,460	)
Accumulated other comprehensive loss, net of tax		(60,048	)		(70,041	)		(80,209	)
Total shareholders’ equity		1,329,308			1,305,075			1,231,830
Total liabilities and shareholders’ equity	$	10,098,870		$	9,807,693		$	9,967,476
SHARE DATA
Average basic shares outstanding		38,068,455			38,327,964			38,031,358
Average diluted shares outstanding		38,229,869			38,565,164			38,188,480
Ending shares outstanding		38,094,105			38,054,482			37,806,148
Common book value per share	$	34.90		$	34.29		$	32.58
Tangible common book value per share⁽¹⁾(non-GAAP)		25.94			25.28			23.32
CAPITAL RATIOS
Average equity to average assets		13.35	%		13.10	%		12.40	%
Tangible common equity to tangible assets⁽¹⁾		10.13	%		10.16	%		9.17	%
Tier 1 leverage ratio		10.89	%		10.69	%		9.99	%
Common equity tier 1 risk-based capital ratio		13.61	%		13.20	%		12.35	%
Tier 1 risk-based capital ratio		13.61	%		13.20	%		12.35	%
Total risk-based capital ratio		15.49	%		15.11	%		14.30	%

(1)		Represents a non-GAAP financial measure. See non-GAAP reconciliations below.


NATIONAL BANK HOLDINGS CORPORATION Loan Portfolio (Dollars in thousands)

Period End Loan Balances by Type

					March 31, 2025				March 31, 2025
					vs. December 31, 2024				vs. March 31, 2024
	March 31, 2025		December 31, 2024		% Change		March 31, 2024		% Change
Originated:
Commercial:
Commercial and industrial	$	1,871,301	$	1,881,570	(0.5	)%	$	1,777,328	5.3	%
Municipal and non-profit		1,116,724		1,106,865	0.9	%		1,062,287	5.1	%
Owner-occupied commercial real estate		1,026,692		1,048,481	(2.1	)%		875,303	17.3	%
Food and agribusiness		251,120		266,332	(5.7	)%		241,654	3.9	%
Total commercial		4,265,837		4,303,248	(0.9	)%		3,956,572	7.8	%
Commercial real estate non-owner occupied		1,136,176		1,123,718	1.1	%		1,092,780	4.0	%
Residential real estate		915,139		922,328	(0.8	)%		923,103	(0.9	)%
Consumer		11,955		12,773	(6.4	)%		14,936	(20.0	)%
Total originated		6,329,107		6,362,067	(0.5	)%		5,987,391	5.7	%

Acquired:
Commercial:
Commercial and industrial		105,493		114,255	(7.7	)%		132,532	(20.4	)%
Municipal and non-profit		271		277	(2.2	)%		294	(7.8	)%
Owner-occupied commercial real estate		198,339		215,663	(8.0	)%		234,486	(15.4	)%
Food and agribusiness		33,831		36,987	(8.5	)%		57,896	(41.6	)%
Total commercial		337,934		367,182	(8.0	)%		425,208	(20.5	)%
Commercial real estate non-owner occupied		659,680		688,620	(4.2	)%		767,419	(14.0	)%
Residential real estate		318,510		331,510	(3.9	)%		387,101	(17.7	)%
Consumer		1,065		1,764	(39.6	)%		1,933	(44.9	)%
Total acquired		1,317,189		1,389,076	(5.2	)%		1,581,661	(16.7	)%
Total loans	$	7,646,296	$	7,751,143	(1.4	)%	$	7,569,052	1.0	%

Loan Fundings⁽¹⁾

	First quarter		Fourth quarter		Third quarter		Second quarter		First quarter
	2025		2024		2024		2024		2024
Commercial:
Commercial and industrial	$	108,594	$	146,600	$	93,711	$	241,910	$	53,978
Municipal and non-profit		12,506		49,175		35,677		28,785		14,564
Owner occupied commercial real estate		37,762		117,850		70,517		102,615		35,128
Food and agribusiness		1,338		15,796		19,205		11,040		(7,204	)
Total commercial		160,200		329,421		219,110		384,350		96,466
Commercial real estate non-owner occupied		65,254		119,132		91,809		83,184		73,789
Residential real estate		29,300		30,750		47,322		36,124		29,468
Consumer		970		726		1,010		1,547		234
Total	$	255,724	$	480,029	$	359,251	$	505,205	$	199,957

(1)		Loan fundings are defined as closed end funded loans and net fundings under revolving lines of credit. Net fundings (paydowns) under revolving lines of credit were $21,752, $64,375, $16,302, $19,281 and ($59,523) for the periods noted in the table above, respectively.


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

	For the three months ended								For the three months ended								For the three months ended
	March 31, 2025								December 31, 2024								March 31, 2024
	Average					Average			Average					Average			Average					Average
	balance			Interest		rate			balance			Interest		rate			balance			Interest		rate
Interest earning assets:
Originated loans FTE⁽¹⁾⁽²⁾	$	6,335,931		$	102,221		6.54	%	$	6,368,697		$	107,400		6.71	%	$	6,046,849		$	100,914		6.71	%
Acquired loans		1,351,726			19,547		5.86	%		1,425,344			22,253		6.21	%		1,611,521			24,289		6.06	%
Loans held for sale		19,756			349		7.16	%		20,196			320		6.30	%		12,017			225		7.53	%
Investment securities available-for-sale		716,938			4,617		2.58	%		735,977			3,196		1.74	%		751,168			4,103		2.18	%
Investment securities held-to-maturity		635,961			4,120		2.59	%		537,970			3,887		2.89	%		579,160			2,514		1.74	%
Other securities		31,386			480		6.12	%		29,256			434		5.93	%		35,036			616		7.03	%
Interest earning deposits		48,206			539		4.53	%		60,400			470		3.10	%		91,579			763		3.35	%
Total interest earning assets FTE⁽²⁾	$	9,139,904		$	131,873		5.85	%	$	9,177,840		$	137,960		5.98	%	$	9,127,330		$	133,424		5.88	%
Cash and due from banks	$	77,237							$	81,371							$	102,583
Other assets		794,374								793,734								756,230
Allowance for credit losses		(95,492	)							(95,750	)							(97,882	)
Total assets	$	9,916,023							$	9,957,195							$	9,888,261
Interest bearing liabilities:
Interest bearing demand, savings and money market deposits	$	5,027,052		$	32,511		2.62	%	$	5,087,799		$	35,443		2.77	%	$	4,947,811		$	36,413		2.96	%
Time deposits		1,035,983			8,756		3.43	%		1,034,560			9,169		3.53	%		990,041			7,584		3.08	%
Federal Home Loan Bank advances		107,151			1,105		4.18	%		66,428			820		4.91	%		228,236			3,181		5.61	%
Other borrowings⁽³⁾		50,277			382		3.08	%		18,374			5		0.11	%		18,929			6		0.13	%
Long-term debt		54,539			518		3.85	%		54,464			518		3.78	%		54,229			518		3.84	%
Total interest bearing liabilities	$	6,275,002		$	43,272		2.80	%	$	6,261,625		$	45,955		2.92	%	$	6,239,246		$	47,702		3.07	%
Demand deposits	$	2,197,300							$	2,249,614							$	2,280,997
Other liabilities		119,806								141,327								141,735
Total liabilities		8,592,108								8,652,566								8,661,978
Shareholders’ equity		1,323,915								1,304,629								1,226,283
Total liabilities and shareholders’ equity	$	9,916,023							$	9,957,195							$	9,888,261
Net interest income FTE⁽²⁾				$	88,601							$	92,005							$	85,722
Interest rate spread FTE⁽²⁾							3.05	%							3.06	%							2.81	%
Net interest earning assets	$	2,864,902							$	2,916,215							$	2,888,084
Net interest margin FTE⁽²⁾							3.93	%							3.99	%							3.78	%
Average transaction deposits	$	7,224,352							$	7,337,413							$	7,228,808
Average total deposits		8,260,335								8,371,973								8,218,849
Ratio of average interest earning assets to average interest bearing liabilities		145.66	%							146.57	%							146.29	%

(1)		Originated loans are net of deferred loan fees, less costs, which are included in interest income over the life of the loan.
(2)		Presented on a fully taxable equivalent basis using the statutory tax rate of 21%. The tax equivalent adjustments included above are $1,910, $1,874 and $1,692 for the three months ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively.
(3)		Other borrowings includes securities sold under agreements to repurchase and cash collateral received from counterparties in connection with derivative swap agreements.


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

Allowance for Credit Losses Analysis

	As of and for the three months ended
	March 31, 2025			December 31, 2024			March 31, 2024
Beginning allowance for credit losses	$	94,455		$	95,047		$	97,947
Charge-offs		(15,251	)		(2,391	)		(278	)
Recoveries		138			175			188
Provision expense (release) for credit losses		10,850			1,624			(250	)
Ending allowance for credit losses (“ACL”)	$	90,192		$	94,455		$	97,607
Ratio of annualized net charge-offs to average total loans during the period		0.80	%		0.11	%		0.00	%
Ratio of ACL to total loans outstanding at period end		1.18	%		1.22	%		1.29	%
Ratio of ACL to total non-performing loans at period end		260.52	%		262.42	%		272.52	%
Total loans	$	7,646,296		$	7,751,143		$	7,569,052
Average total loans during the period		7,660,974			7,772,712			7,632,635
Total non-performing loans		34,620			35,994			35,817

Past Due and Non-accrual Loans

	March 31, 2025			December 31, 2024			March 31, 2024
Loans 30-89 days past due and still accruing interest	$	17,003		$	23,164		$	3,495
Loans 90 days past due and still accruing interest		1,012			14,940			1
Non-accrual loans		34,620			35,994			35,817
Total past due and non-accrual loans	$	52,635		$	74,098		$	39,313
Total 90 days past due and still accruing interest and non-accrual loans to total loans		0.47	%		0.66	%		0.47	%

Asset Quality Data

	March 31, 2025			December 31, 2024			March 31, 2024
Non-performing loans	$	34,620		$	35,994		$	35,817
OREO		615			662			4,064
Total non-performing assets	$	35,235		$	36,656		$	39,881
Total non-performing loans to total loans		0.45	%		0.46	%		0.47	%
Total non-performing assets to total loans and OREO		0.46	%		0.47	%		0.53	%


NATIONAL BANK HOLDINGS CORPORATION Key Metrics⁽¹⁾

	As of and for the three months ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Return on average assets		0.99	%		1.13	%		1.28	%
Return on average tangible assets⁽²⁾		1.09	%		1.23	%		1.39	%
Return on average tangible assets, adjusted⁽²⁾		1.09	%		1.44	%		1.39	%
Return on average equity		7.42	%		8.59	%		10.30	%
Return on average tangible common equity⁽²⁾		10.64	%		12.31	%		15.14	%
Return on average tangible common equity, adjusted⁽²⁾		10.64	%		14.40	%		15.14	%
Loan to deposit ratio (end of period)		90.77	%		94.09	%		88.86	%
Non-interest bearing deposits to total deposits (end of period)		26.30	%		26.87	%		26.92	%
Net interest margin⁽³⁾		3.85	%		3.91	%		3.70	%
Net interest margin FTE⁽²⁾⁽³⁾		3.93	%		3.99	%		3.78	%
Interest rate spread FTE⁽²⁾⁽⁴⁾		3.05	%		3.06	%		2.81	%
Yield on earning assets⁽⁵⁾		5.77	%		5.90	%		5.80	%
Yield on earning assets FTE⁽²⁾⁽⁵⁾		5.85	%		5.98	%		5.88	%
Cost of funds		2.07	%		2.15	%		2.25	%
Cost of deposits		2.03	%		2.12	%		2.15	%
Non-interest income to total revenue FTE⁽⁶⁾		14.79	%		10.78	%		17.11	%
Efficiency ratio		60.76	%		63.75	%		61.77	%
Efficiency ratio excluding other intangible assets amortization FTE, adjusted⁽²⁾		57.74	%		57.03	%		58.82	%
Pre-provision net revenue	$	40,050		$	36,704		$	38,890
Pre-provision net revenue FTE⁽²⁾		41,960			38,578			40,582
Pre-provision net revenue FTE, adjusted⁽²⁾		41,960			45,160			40,582

Total Loans Asset Quality Data⁽⁷⁾⁽⁸⁾
Non-performing loans to total loans		0.45	%		0.46	%		0.47	%
Non-performing assets to total loans and OREO		0.46	%		0.47	%		0.53	%
Allowance for credit losses to total loans		1.18	%		1.22	%		1.29	%
Allowance for credit losses to non-performing loans		260.52	%		262.42	%		272.52	%
Net charge-offs to average loans		0.80	%		0.11	%		0.00	%

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


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

Tangible Common Book Value Ratios

	March 31, 2025			December 31, 2024			March 31, 2024
Total shareholders’ equity	$	1,329,308		$	1,305,075		$	1,231,830
Less: goodwill and other intangible assets, net		(354,800	)		(356,777	)		(362,709	)
Add: deferred tax liability related to goodwill		13,638			13,535			12,539
Tangible common equity (non-GAAP)	$	988,146		$	961,833		$	881,660

Total assets	$	10,098,870		$	9,807,693		$	9,967,476
Less: goodwill and other intangible assets, net		(354,800	)		(356,777	)		(362,709	)
Add: deferred tax liability related to goodwill		13,638			13,535			12,539
Tangible assets (non-GAAP)	$	9,757,708		$	9,464,451		$	9,617,306

Tangible common equity to tangible assets calculations:
Total shareholders’ equity to total assets		13.16	%		13.31	%		12.36	%
Less: impact of goodwill and other intangible assets, net		(3.03	)%		(3.15	)%		(3.19	)%
Tangible common equity to tangible assets (non-GAAP)		10.13	%		10.16	%		9.17	%

Tangible common book value per share calculations:
Tangible common equity (non-GAAP)	$	988,146		$	961,833		$	881,660
Divided by: ending shares outstanding		38,094,105			38,054,482			37,806,148
Tangible common book value per share (non-GAAP)	$	25.94		$	25.28		$	23.32


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

	As of and for the three months ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net income	$	24,231		$	28,184		$	31,391
Add: loss on security sales, after tax (non-GAAP)⁽¹⁾		—			5,048			—
Net income adjusted for the loss on security sales, after tax (non-GAAP)⁽¹⁾	$	24,231		$	33,232		$	31,391

Net income	$	24,231		$	28,184		$	31,391
Add: impact of other intangible assets amortization expense, after tax		1,516			1,516			1,534
Net income excluding the impact of other intangible assets amortization expense, after tax (non-GAAP)	$	25,747		$	29,700		$	32,925

Net income excluding the impact of other intangible assets amortization expense, after tax	$	25,747		$	29,700		$	32,925
Add: loss on security sales, after tax (non-GAAP)⁽¹⁾		—			5,048			—
Net income excluding the impact of other intangible assets amortization expense, adjusted for the loss on security sales, after tax (non-GAAP)⁽¹⁾	$	25,747		$	34,748		$	32,925

Average assets	$	9,916,023		$	9,957,195		$	9,888,261
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill		(342,425	)		(344,417	)		(351,383	)
Average tangible assets (non-GAAP)	$	9,573,598		$	9,612,778		$	9,536,878

Average shareholders’ equity	$	1,323,915		$	1,304,629		$	1,226,283
Less: average goodwill and other intangible assets, net of deferred tax liability related to goodwill		(342,425	)		(344,417	)		(351,383	)
Average tangible common equity (non-GAAP)	$	981,490		$	960,212		$	874,900

Return on average assets		0.99	%		1.13	%		1.28	%
Adjusted return on average assets (non-GAAP)		0.99	%		1.33	%		1.28	%
Return on average tangible assets (non-GAAP)		1.09	%		1.23	%		1.39	%
Adjusted return on average tangible assets (non-GAAP)		1.09	%		1.44	%		1.39	%
Return on average equity		7.42	%		8.59	%		10.30	%
Adjusted return on average equity (non-GAAP)		7.42	%		10.13	%		10.30	%
Return on average tangible common equity (non-GAAP)		10.64	%		12.31	%		15.14	%
Adjusted return on average tangible common equity (non-GAAP)		10.64	%		14.40	%		15.14	%

(1) Adjustments:
Loss on security sales (non-GAAP)	$	—		$	6,582		$	—
Tax benefit impact		—			(1,534	)		—
Total adjustments, after tax (non-GAAP)	$	—		$	5,048		$	—

Fully Taxable Equivalent Yield on Earning Assets and Net Interest Margin

	As of and for the three months ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Interest income	$	129,963		$	136,086		$	131,732
Add: impact of taxable equivalent adjustment		1,910			1,874			1,692
Interest income FTE (non-GAAP)	$	131,873		$	137,960		$	133,424

Net interest income	$	86,691		$	90,131		$	84,030
Add: impact of taxable equivalent adjustment		1,910			1,874			1,692
Net interest income FTE (non-GAAP)	$	88,601		$	92,005		$	85,722

Average earning assets	$	9,139,904		$	9,177,840		$	9,127,330
Yield on earning assets		5.77	%		5.90	%		5.80	%
Yield on earning assets FTE (non-GAAP)		5.85	%		5.98	%		5.88	%
Net interest margin		3.85	%		3.91	%		3.70	%
Net interest margin FTE (non-GAAP)		3.93	%		3.99	%		3.78	%

Efficiency Ratio and Pre-Provision Net Revenue

	As of and for the three months ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Net interest income	$	86,691		$	90,131		$	84,030
Add: impact of taxable equivalent adjustment		1,910			1,874			1,692
Net interest income FTE (non-GAAP)	$	88,601		$	92,005		$	85,722

Non-interest income	$	15,376		$	11,119		$	17,694
Add: loss on security sales (non-GAAP)		—			6,582			—
Non-interest income adjusted for the loss on security sales (non-GAAP)	$	15,376		$	17,701		$	17,694

Non-interest expense	$	62,017		$	64,546		$	62,834
Less: other intangible assets amortization		(1,977	)		(1,977	)		(2,008	)
Non-interest expense excluding other intangible assets amortization (non-GAAP)	$	60,040		$	62,569		$	60,826

Efficiency ratio		60.76	%		63.75	%		61.77	%
Efficiency ratio FTE (non-GAAP)		59.64	%		62.59	%		60.76	%
Efficiency ratio excluding other intangible assets amortization, adjusted for the loss on security sales FTE (non-GAAP)		57.74	%		57.03	%		58.82	%
Pre-provision net revenue (non-GAAP)	$	40,050		$	36,704		$	38,890
Pre-provision net revenue, FTE (non-GAAP)		41,960			38,578			40,582
Pre-provision net revenue FTE, adjusted for the loss on security sales (non-GAAP)		41,960			45,160			40,582

Adjusted Net Income and Earnings Per Share

	As of and for the three months ended
	March 31,		December 31,		March 31,
	2025		2024		2024
Adjustments to net income:
Net income	$	24,231	$	28,184	$	31,391
Add: adjustment for the loss on security sales, after tax (non-GAAP)		—		5,048		—
Adjusted net income (non-GAAP)	$	24,231	$	33,232	$	31,391

Adjustments to earnings per share:
Earnings per share diluted	$	0.63	$	0.73	$	0.82
Add: adjustment for the loss on security sales, after tax (non-GAAP)		—		0.13		—
Adjusted earnings per share – diluted (non-GAAP)	$	0.63	$	0.86	$	0.82

The MIL Network –

April 23, 2025

MIL-OSI USA: Congresswoman Cherfilus-McCormick Statement on Reorganization of State Department

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

WASHINGTON, DC – Today, Congresswoman Sheila Cherfilus-McCormick (D-FL), Ranking Member of the House Foreign Affairs Middle East and North Africa Subcommittee, issued the following statement on the Administration’s reorganization of the State Department.

“I have grave concerns that such a sweeping overhaul of the State Department will have a devastating impact on America’s standing and be felt in every corner of the globe.

“We have reached a critical juncture — one in which our allies have rapidly lost faith in our security commitments and our trading partners are worried about the U.S. economy. Confidence in America is slipping. This move — coming on the heels of chaotic tariff negotiations, our diminished role in international alliances, and China openly mocking the U.S. on social media — could appear as a retreat.

“At this moment, when so many fear that they cannot count on America, the last thing we should be doing is upending our diplomatic footprint. We should be living up to our commitments, not continually reneging on them. We also should serve and protect American families abroad, while protecting our national security at home.

“As I have emphasized, I am open to reforms where necessary — but these proposals must be approached with caution and in close consultation with Congress.”

###

MIL OSI USA News –

April 23, 2025

MIL-Evening Report: Lest we forget? Aside from Anzac Day, NZ has been slow to remember its military veterans

Source: The Conversation (Au and NZ) – By Alexander Gillespie, Professor of Law, University of Waikato

Fiona Goodall/Getty Images

Following some very public protests, including Victoria Cross recipient
Willie Apiata handing back his medal, the government’s announcement of an expanded official definition of the term “veteran” brings some good news for former military personnel ahead of this year’s ANZAC Day.

The change will add roughly 100,000 service people and remove an anomaly that favoured those who served overseas, unless they served in New Zealand before 1974 when the Accident Compensation Corporation was founded. The new definition will not automatically change existing entitlements, but the government has expressed commitment to improving veterans’ support.

The government will also establish a new national day of tribute for veterans. This falls somewhat short of a recommendation from the 2018 independent review of the Veterans’ Support Act which stated the government should accept it has a “moral duty of care to veterans”. But if adopted, this would create a missing ethical compass all democracies should have to acknowledge responsibilities to those who risked everything in service of their country.

The same report also recommended better financial support for veterans, but so far the government has been reluctant to review the adequacy of veterans’ pensions.

None of this is particularly surprising, given New Zealand’s history of sending people to fight and then rejecting their claims for recognition and compensation when the war is over.

Some of this may also come to light in the Waitangi Tribunal’s current Military Veterans Kaupapa Inquiry, with potentially strong evidence of discrimination against Māori service personnel in particular.

Sacrifice and compensation

When New Zealand gave out its first military pensions in 1866, only the victors of the New Zealand Wars received them. For Māori allies, equity was missing. Pro-government Māori troops were eligible, but at a lower rate than Pākehā veterans.

It was only in 1903 that specialist facilities such as the Ranfurly war veterans’ home in Auckland were created.

The initial treatments for those who suffered “shell shock”, especially in the first world war, were atrocious. Their placement in mental institutions only ended following public outcry.

Some veterans of the New Zealand Wars were compensated by being granted confiscated Māori land. It wasn’t until 1915 that a new system was formalised.

This provided farm settlement schemes and vocational training for first world war veterans. The balloted farmland was largely exclusionary as Māori veterans were assumed to have tribal land already available to them.

The rehabilitation of disabled service personnel dates back to the 1930s, before being formally legislated in 1941. But the focus faded over the following decades, with the specific status of veterans blurring as they were lumped in with more generic welfare goals.

It took until 1964 for the government to pay war pensions to those who served in Jayforce, the 12,000-strong New Zealand troops stationed in Japan as part of the postwar occupation from 1946 to 1948.

From atomic tests to Agent Orange

British hydrogen bombs were tested over Kiritimati in 1957.
Wikimedia Commons, CC BY-SA

A decade later, more than 500 New Zealand navy personnel took part in Operation Grapple, the British hydrogen bomb tests near Kiribati in 1957–58. Despite evidence of a variety of health problems – including cancer, premature death and deformities in children – it was not until 1990 that the government extended coverage of benefits to veterans who had contracted some specific listed conditions.

It took another eight years before the government broadened the evidence requirements and accepted service in Operation Grapple as an eligibility starting point for additional emergency pensions.

Last year, the United States declared a National Atomic Veterans’ Day and made potentially significant compensation available. But neither New Zealand nor Britain even apologised for putting those personnel in harm’s way so recklessly.

During the war in Vietnam, some of the 3,400 New Zealanders who served between 1963 and 1975 were exposed to “Agent Orange”, the notorious defoliant used by the US military.

Some of them and their children experienced related health problems and higher death rates. The government did not accept there was a problem until 2006 and apologised in 2008.

Assistance and compensation was based on evidence of specific listed conditions. And although the list has expanded over time, the legal and medical burden of proving a link between exposure and an illness falls on the veteran.

This is the opposite of what should happen. If there is uncertainty about the medical condition of a veteran, such as a non-listed condition, it should be for the Crown to prove an illness or injury is not related to military service. This burden should not fall on the victim.

Lest we forget

Today, support for veterans remains limited. There is still a reluctance to systematically understand, study and respond to the long-term consequences of military service.

For many, service develops skills such as resilience, confidence and flexibility which are sought after in civilian life. For some, their experiences lead to lingering trauma and even self-harm or suicide.

While Britain and Australia can track the incidence of veteran self-harm, New Zealand lacks robust data. Beyond some early research, the prevalence of suicide in the veteran population is unknown.

Despite recommendations from the 2018 report that this data gap should be plugged, it means that when three self-inflicted deaths of veterans occurred within three weeks earlier this year, this couldn’t be viewed within any overall pattern. This makes appropriate support and interventions harder to design.

This all points to the same problem. While we intone “lest we forget” on April 25, a day later most of us are looking the other way.

Alexander Gillespie does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. Lest we forget? Aside from Anzac Day, NZ has been slow to remember its military veterans – https://theconversation.com/lest-we-forget-aside-from-anzac-day-nz-has-been-slow-to-remember-its-military-veterans-254684

MIL OSI Analysis – EveningReport.nz –

April 23, 2025

MIL-OSI Russia: World Economic Outlook Press Briefing

Source: IMF – News in Russian

April 22, 2025

Speakers:

Pierre‑Olivier Gourinchas, Director, Research Department, IMF
Petya Koeva Brooks, Deputy Director, Research Department, IMF
Deniz Igan, Division Chief, Research Department, IMF

Moderator:
Jose Luis De Haro, Communications Officer, IMF

Mr. De Haro: OK. I think we can start and we have a quorum. So good morning, everyone, and welcome. I want to welcome also those joining us online. I am Jose Luis de Haro with the Communications Department at the IMF and we are gathered here today for the presentation of our latest edition of the World Economic Outlook titled, “A Critical Juncture Amid Policy Shifts.” I hope by this time you all have had access to the document. If not, I am going to encourage you, as always, to go to IMF.org. There, you are going to find the document, the World Economic Outlook, also Pierre‑Olivier’s blog and many other assets, including the underlying data for some of the charts that are published on the World Economic Outlook.

I also want to plug in that we have a new database portal that I encourage you to use, and what’s best, that to discuss the new outlook that having here with us today, Pierre‑Olivier Gourinchas. He is the Economic Counsellor, the chief economist, and the Director of the Research Department. Next to him are Petya Koeva Brooks, she is the Deputy Director of the Research Department and last, but not least, we also have Deniz Igan, she is the division chief also with the Research Department.

Pierre‑Olivier, as usual is going to start with some opening remarks, and then we are going to open the floor to your questions. I just want to remind everyone that this press briefing, it’s on the record and that we also have simultaneous translation.

So let me stop here. Pierre‑Olivier, the floor is yours.

Mr. Gourinchas: Thank you, Jose. And good morning, everyone. The landscape has changed since our last World Economic Outlook update in January. We are entering a new era as the global economic system that has operated for the last 80 years is being reset. Since late January, many tariff announcements have been made, culminating on April 2, with near universal levies from the United States and counterresponses from some trading partners. The U.S. effective tariff rate has surged past levels reached more than 100 years ago, while tariff rates on the U.S. have also increased.

Beyond the abrupt increase in tariffs, the surge in policy uncertainty is a major driver of the economic outlook. If sustained, the increasing trade tensions and uncertainty will slow global growth significantly. Reflecting this complexity, our report presents a reference forecast which incorporates policy announcements up to April 4 by the U.S. and trading partners. Under these reference forecasts, global growth will reach 2.8 percent this year and 3 percent next year, a cumulative downgrade of about 0.8 percentage points relative to our January 2025 WEO update. Our report also offers a range of forecasts under different policy assumptions.

Under an alternative path that excludes the April tariff announcements, global growth would have seen only a modest downgrade to 3.2 percent this year. We will also use a model‑based forecast to incorporate the temporary suspension of most tariffs announced on April 9, together with the increase in bilateral tariffs between China and the U.S. to prohibitive levels. This pause, even if extended permanently, delivers a similar growth outlook as a reference forecast, 2.8 percent, even if some highly tariffed countries could benefit.

Now, while global growth remains well above recession levels, all regions are negatively impacted this year and next. And the global disinflation process continues, but at a slower pace with inflation revised up by 0.1 percentage point in both years. These trade tensions will greatly impact global trade. We project that global trade growth will be more than cut in half from 3.8 percent last year to 1.7 percent this year. The tariffs will play out differently in different countries. For the United States, the tariffs represent a supply shock that reduces productivity and output permanently and increases price pressures temporarily. This adds to an already weakening outlook and leads us to revise growth down by 0.9 percentage points to 1.8 percent, with a 0.4 percentage point downgrade from the tariffs only. While inflation is revised upwards.

For trading partners, tariffs act mostly as a negative external demand shock. Weakening activity and prices, even if some countries could benefit from trade diversion. This is why we have lowered our China growth forecast this year to 4 percent, while inflation is revised down by 0.8 percentage points, increasing deflationary pressures. All countries are negatively affected by the surge in trade policy uncertainty, as businesses cut purchases and investment, while financial institutions reassess their borrowers’ exposure. Uncertainty also increases because of the complex sectoral disruptions that tariffs could cause up and down supply chains, as we saw during the pandemic.

The effect of these shocks on exchange rates is complex. The tariffs could appreciate the US dollar, as in previous episodes. However, greater policy uncertainty, lower U.S. growth prospects, and an adjustment in the global demand for dollar assets are weighing down on the dollar.

Risks to the global economic have increased and are firmly to the downside.

First, while we are not projecting a global downturn, the risks it may happen this year have increased substantially, from 17 percent projected back in October to 30 percent now. An escalation of trade tensions would further depress growth. Financial conditions could also tighten, as markets react negatively to diminished growth prospects and increased uncertainty. On the flip side, growth prospects could immediately improve if countries ease from their current trade policy stance and promote a new, clear, and stable trade environment.

Addressing domestic imbalances can also help raise growth while contributing significantly to closing external imbalances. For Europe, this means spending more on public infrastructure to accelerate productivity growth. For China, it means boosting support for domestic demand. While for the U.S., it means stepping up fiscal consolidation.

Turning to policies. Our recommendations call for prudence and improved collaboration. Let me outline some key ones. First, an obvious priority is to restore trade policy stability. The global economy needs a clear, stable, and predictable trading environment, one that addresses some of the longstanding gaps in international trading rules. Monetary policy will need to remain agile and respond by tightening where inflation pressures re‑emerge, while easing where weak demand dominates. Monetary policy credibility will be key, especially where inflation expectations might de‑anchor. And central bank independence remains a cornerstone.

Many fiscal authorities will face new spending needs to bolster defense spending or to offset the trade dislocations, likely to come. Some of the poorest countries also hit with reduced official aid could experience debt distress. Yet debt levels are still elevated and most countries still need to rebuild fiscal space, including by implementing structural reforms. Support, where needed, should remain narrowly targeted and temporary. It is easier to turn on the fiscal tap than to turn it off. Where new spending needs are permanent, as for defense spending in some countries, planning for offsetting cuts elsewhere or new revenues should be made.

Finally, even if some of the grievances against our trading system have merit, we should all work toward fixing the system so that it can deliver better opportunities to all. Thank you.

Mr. De Haro: Thank you, Pierre‑Olivier. Before we open the floor to your questions, some ground rules. First of all, if you want to ask a question, raise your hand. If I call on you, please identify yourself and the media outlet you represent. Try to be succinct. Stick to one question. We want to answer as many questions as possible.

And also, a reminder. We are here to discuss the World Economic Outlook. Those questions regarding country programs, institutional issues are going to be better placed for the regional press briefings that are happening later this week and also the Managing Director’s press briefing this Thursday.

With that said, I want hands up. OK. So I am going to start here in the center. Then I am going to move the room to my left. Then to my right. I am going to start with the lady with the green jacket there.

QUESTION: Thank you.. Thanks so much for doing this.

Pierre‑Olivier, I wonder if you can speak a little bit to the fact that you haven’t called out a recession. And you know, we are hearing lots of economists in the United States and other places‑‑most recently yesterday, the IIF is now also forecasting a small recession in the second half of the year. What we see in the WEO is that the percentage of risk of a recession has increased pretty dramatically. Can you walk us through why you are not at this point calling a recession, for instance, likely in the United States and what it would take to tip it that way? Thanks.

Mr. Gourinchas: Thank you, Andrea.

So for the United States, we are projecting a significant slowdown. We are projecting growth will be at 1.8 percent in 2025. And that’s a 0.9 percentage‑point slowdown‑‑revision in our projections from January. But 1.9 percent is obviously not a recession. And the reason for this is is that we have a U.S. economy that, in our view, is coming from a position of strength. We had an economy that was growing very rapidly. We have a labor market that is still very robust. We have seen some signs of weakening and slowdown in the U.S. economy, even before the tariff announcements. So, in fact, the 0.9 percentage point downward revision that I just mentioned, only a part of this‑‑maybe 0.4 percentage points‑‑is coming from the tariffs. Some of that is also coming from weakening momentum. This was an economy that was doing very, very well but was self‑correcting and cooling off a bit on its own. And we were seeing already consumption numbers coming down. We are seeing consumer confidence coming down. So all of that was already factored in. But we are not seeing a recession in our reference forecast.

As you mentioned, Andrea, we are‑‑when we do our risk assessment, if you want, we are seeing the probability of a recession increasing, from about 25 percent back in October to around 40 percent when we assess it now.

Mr. De Haro: OK. I am going to move to this side. The lady here in red.

QUESTION: Good morning.

Pierre, I wanted to ask you about the downward pressure on the dollar now. To what extent you believe it can provide some relief from the pressure on highly indebted emerging economies with a large share of dollar‑denominated debt? And has this downward pressure on the dollar changed your outlook on all of those emerging economies that are still, you know, under the impact of the high debt‑‑as mentioned by the MD in previous meetings, where this high debt is really one of the impediments to growth? Thanks.

Mr. Gourinchas: Yes. So we are seeing a weakening of the dollar that is fairly broad‑based over the last few weeks, as I mentioned in my opening remarks, some of that is coming from the weaker growth prospects in the U.S. Some it is coming from the increased uncertainty. And it’s leading to a reassessment of the global demand for dollar assets. When we step back, we also have to realize we are coming from a position where, over the last few years, there have been tremendous capital inflows into U.S. markets, in particular, risk markets. That’s something that, of course, my colleague Tobias Adrian will talk about in the GFSR press conference. So we are seeing some adjustment, some contradiction. The markets are handling it. We don’t see signs of stress, even in currency markets.

Now, the interesting development is, what does it mean for emerging markets? And you are right to point out that, in the past, when the dollar would strengthen, that would not necessarily be good news for emerging markets because they have dollar‑denominated debts, so that increases their liabilities and the pressure on them to service their debts. And this can lead to some tightening of financial conditions. So we are not seeing that right now. And so that’s a plus. The flip side of this is, of course, the appreciation of some of these emerging markets’ currencies means that they are also losing a little bit on the competitiveness side, so there is maybe something that is a bit easier on the finance conditions, something that is not as easy on the trade side.

Finally, this is an environment of enormous uncertainty, increased volatility. And that I think is something that will dominate for many of the emerging markets. So when we are looking at our assessment, we are actually downgrading the emerging market economies for 2025 and 2026, most of them. Some of them may, as I mentioned, benefit. But overall, as a group, they are downgraded. While because they are also very plugged into the global supply chains, the uncertainty is leading to a pause in investment and activity, and they are going to suffer from the decline in demand for their products coming from the tariffs.

Mr. De Haro: OK. I am going to go with the gentleman here with the glasses.

QUESTION: Thank you. I just have one question. Could you elaborate a little bit on what will happen with the trade flows in your models? I saw that in the basic assumption, the exports from the U.S. are [breaking quite heavily but not that much from China. Why is this so?

And do I understand it right that this basic model does not yet integrate the additional hikes after ‑‑ happening after basically April 9, so above 100 percent on import tariffs by the U.S.? Thanks.

Mr. Gourinchas: So we are seeing a large impact on global trade coming from the tariffs and that’s going to be the case under any combination of tariffs where the effective tariff rates remains very elevated. And the reason why when we looked at the different scenarios that I mentioned, whether it’s a reference scenario or our April 9 scenario which includes lower tariffs on many countries but sharply increased tariffs between the U.S. and China. The overall impact on the global economy is not very different because the effective tariff rate is, if anything, even higher under that pause. So global trade is going to be significantly affected. The particular configuration of trade, which bilateral trade flows are going to be affected versus others that will depend on the final landscape in terms of tariffs so we can anticipate that there will be much lower bilateral trade under either the reference scenario or the April 9, between the U.S. and China. And that is weighing down on global trade growth. This is weighing down on global trade generally.

Mr. De Haro: OK. I am going to turn here to the center. I am going to go to the first row. I am going to go with the lady with the yellow bottle.

QUESTION: Thank you,

You have downgraded the U.K.’s growth forecast quite sharply and given the range of explanations, from higher tariff barriers to more domestic issues, like cost‑of‑living pressures. Out of those, so the global challenges versus domestic challenges, which one is weighing more heavily on the U.K.’s growth forecasts?

Mr. De Haro: OK we are going to open the round of U.K. questions so if you have questions on the U.K., raise your hand. And I will pass the mic to you. I see two there. Yep.

QUESTION: Hi.

In a world where everyone is warning about the impact of tariffs on U.S. inflation and how much it will raise U.S. prices, why do you have the U.K. with the highest inflation rate in the G‑7 this year? And do you believe tariffs will be inflationary or disinflationary for the U.K.?

Mr. De Haro: OK. Joe here in the first row.

QUESTION: Yeah. Thank you. Thank you very much. So Joel hills from ITV news. Obviously it’s impacting the tariffs are impacting the U.K. They are impacting most countries. I just wonder this, President Trump did say there would be some disruption. He suggested it would be sort of temporary. Is it possible that President Trump is actually a genius? That he knows something you do not?

Mr. De Haro: And I think we have a last question on the U.K. and this is going to be the last question on the U.K. There on the back of the room.

QUESTION: Yeah.

The U.K. inflation forecast is, you know, much higher than we expected it to be, 0.7 percent higher. Is that going to impact on lowering interest rates in the U.K.? And does that affect the growth rate, which seems to be rather optimistic, compared with some of the other European countries?

Mr. De Haro: OK. We are going to be done with the U.K. questions and then we will move along. So Pierre‑Olivier.

Mr. Gourinchas: Thank you. So many questions. Let me address them as best I can. First, on the revision for growth in the U.K. and inflation. So the tariffs are playing a role, as they are in most countries and uncertainty is also playing a role, as it is in all countries. And it’s weighing down on growth in the U.K. But there are some U.K.‑specific factors and I would say that in terms of the zero point 5 percentage point downward revision that we are saying for the U.K., the domestic factors are probably the biggest ones. And in particular, there is a lower carryover from weaker growth in the second half of last year. There is also some tightening of financial conditions, as interest rates have risen, longer‑term interest rates.

On inflation, the revision in inflation in the U.K. is coming, again, from domestic factors, and in particular some change in regulated energy prices. So that’s expected to be temporary but it’s also very U.K.‑specific. The effect of the tariffs on countries like the U.K., like it is on the EU or China is like a negative demand shock. It’s weakening activity but it’s also lowering price pressures, not increasing them.

Now, what is the impact of the tariffs in the medium and long term? Not just what’s going to happen this year and next but what’s going to happen longer term? Our assessment is it’s going to be negative. We have a box in our report that looks at the long‑term impact of the tariffs, if they are maintained. And it is negative for all regions, just like the short‑term impact. So we are seeing a negative impact in the short term, in the medium term, in the long term. Again, there are nuances. Some countries might benefit, depending on the particular configuration of tariffs. It might benefit from some trade diversion; but the broad picture is it’s negative for the outlook.

Now, our ‑‑ and I will end with that. Our forecast for 2025 is slightly higher than OBR’s forecast. Some of this has to do with some of the underlying monetary policy assumptions for the U.K. The bank‑‑

Our assumption for this year is that there are going to be four cuts through the year. One cut already happened. We expect three more.

Mr. De Haro: Thank you, Pierre‑Olivier. I am not going to forget about the people that are on WebEx, and I am going to pass a question there. I see Anton from TAS.

QUESTION: Good morning. Thank you for doing this.

Given the projected slowdown of Russia’s GDP growth from 4.1 in 2024 to 1.5 in 2025, what are the primary factors driving this sharp decline? And how sustainable is Russia’s growth model going forward? Thank you.

Mr. De Haro: Go ahead.

Mr. Gourinchas: Petya, would you like to answer?

Ms. Koeva Brooks: Sure. We are indeed expecting a slowdown in growth to 1.5 this year, and this, to a large extent is kind of the natural slowing of the economy after growing quite robustly in previous years. And also as a result of policy tightening that we have seen, both on the fiscal as well as on the monetary policy side. It is also due to the lower oil prices that have come about as a result of the‑‑as a response to the round of tariffs, as well as the uncertainty about global growth. So all these factors are behind that lower growth number, although I should point out that it is actually a slight upward revision, relative to what we had back in January. And the reason for that is that, again, we actually had seen upward surprises in 2024, which kind of carried into 2025.

When it comes to the medium‑term growth outlook, we do expect that to be relatively weak. We are‑‑we have penciled in growth number of about 1.2, which is down from 1.7 which is what we had before the start of the war.

Mr. De Haro: OK. Let’s continue. I am going to go again in the center and then I am going to go to that side. The lady with the glasses there.

QUESTION: Hi.

In Latin America, we received almost every country 10 percent. So I want to know about the impact of the tariffs in Latin America and if the impact is going to be limited, versus other regions, and when we are going to start to feeling this impact. Thank you.

Mr. De Haro: And before we answer the question, are there any questions on Mexico, Brazil, Argentina? OK. Argentina friends, go ahead.

QUESTION: Hello.

You’ve kept 5.5 growth projection that was decided in the latest program that Argentina signed with the IMF. I would like to know why you are not seeing so much impact yet about‑‑of this general context.

Mr. De Haro: OK. We can go ahead first with the Latin America overview and then we can go to Argentina.

Mr. Gourinchas: I will just say something briefly and then ask my colleague Petya to come in. So for Latin America, as a whole, we are saying activity that is largely driven by consumption on the back of resilient labor markets while investment remains somewhat sluggish. And the slowdown in our projection reflects the impact of tariffs and the global growth slowdown, of course, which is also affecting countries in the region. Policy uncertainty. And the withdrawal of fiscal stimulus and in some countries monetary policy tightening.

Ms. Koeva Brooks: I don’t have a lot to add. Just to say that the disinflation process has also slowed a bit, and this is also‑‑also makes the policy trade‑offs a bit more complicated with slow‑‑with growth slowing down and at the same time, you know, having still challenges on the inflation side.

Mr. De Haro: OK. So we are going to move on. I am going to ask the gentleman in the first row there because‑‑

Oh, sorry. Sorry. I forgot about Argentina. Please go ahead.

Ms. Koeva Brooks: We cannot forget about Argentina.

So the growth forecast for this year‑‑you are right‑‑we still have the upgrade of .5. And this is related to just the positive surprises that we had seen, in spite of a very strong fiscal adjustment, the recovery in confidence I think has definitely played a role in kind of driving us to have this forecast. That said, there are a number of risks related to tighter financial conditions, commodity prices, and a lot of others, which is true for many if not most other countries.

Mr. De Haro: OK. So now we can move on. I am going to go with the gentleman in the first row.

QUESTION: Thank you. In the October 2024 outlook you saw a stable but slow growth for Africa. What’s new now? And what kind of initiatives like the African Continental Free Trade Area do for African economies amidst these trade tensions?

Mr. De Haro: And before we answer, I think‑‑

QUESTION: Hi. Good morning.

One of the things that you mentioned in your report is the demographic shift and the rise in the silver economy. Africa, on the other hand, has the reverse of that. So what is your recommendation in the short and medium term on how to deal with some of these challenges pertaining to tariffs, monetary policy, and now currency exchange? Thank you.

Mr. De Haro: OK.

Mr. Gourinchas: OK. Thank you. I will just say one word about the outlook in sub‑Saharan Africa and then I will ask my colleague Deniz to come in to add more color and answer also the question on the demographic trends.

So regional growth in sub‑Saharan Africa improved significantly last year, to 4 percent. And it will ease in 2025. And this is in line with a softer global outlook. So we are seeing the same forces at play in the region, as we are seeing more globally. And a downturn‑‑and a downward revision in our projection that is of a similar magnitude at about 0.4 percentage point. Deniz?

Ms. Igan: Thank you for the question. So on the demographic shifts, our Chapter 2 basically points out that countries’ age structures are evolving at different rates, as you pointed out as well. We have most western economies, some Asian economies that are aging fast. And you know in a health way some of them. And then we have many sub‑Saharan African countries that have a very young population. And what the chapter shows is actually, there are important medium‑term consequences of that, both for growth, as well as external balances of countries.

In Africa’s case, basically, what we would see is a demographic dividend coming from having a young population. And the question then becomes how best to leverage that, how best to use that and channel it into growth. And the answer there, first and foremost, depends on the structural reforms, the investment that’s necessary on healthcare, on education, on human capital more generally and also international cooperation because our Chapter 3 looks more carefully into migration flows. And again, there, we see migration policy shifts in destination countries has spillovers for other countries. And this is especially true for emerging market economies and lower income economies. So, again, international cooperation there, making sure that growth dividends are utilized in the best way is what we delve into in the chapter.

Mr. De Haro: OK. I am going to go to the gentleman with‑‑raise your hand. Yeah. You. No, I am going back. Then I will go‑‑there you go.

QUESTION: OK. I have a question about China’s growth.

In your World Economic Outlook, you say China’s growth forecast has been cut to 4 percent for this year, which is a 0.6 percentage drop from an earlier projection. But China’s National Bureau of Statistics a couple of days ago predicted China’s growth GDP growth in the first quarter was 5.4 percent. So my question is, how do you see the disparity in the forecast? Is China more optimistic than you are? Thank you.

Mr. Gourinchas: Thank you. So, yes, we are revising our growth projections for China down by 0.6 percentage points, as you have noted. I should flag that this number does not incorporate the latest release for Q1. That came after we closed our round of projections. So this is not reflected there. And we will have to see how it affects our projections when we have our next round of WEO updates.

But let me give you a little bit of perspective on the rationale behind our revision for China. The tariff increase in tariffs especially since China is one of the countries that is facing the most elevated tariffs right now, is going to have a very significant impact in our projections on the Chinese economy. In fact, when we do a decomposition, which I showed during my opening remarks, the impact of the tariffs on the Chinese economy would be a negative 1.3 percentage point revision on growth.

So why do we only have 0.6? Well, because there are other factors that are helping to support Chinese growth in 2025 and 2026. One of which‑‑which is quite important‑‑is the fiscal support that has been announced since the beginning of the year. And that is adding up, something of the amount of 0.5 percentage points. So the impact of the current trade tensions is very significant. It’s partly offset. We expect it to remain quite significant also in 2026 when we also have a downward revision by about 0.5 percentage points.

The other side of this, where we are seeing the impact of the tariffs is on inflation, which is revised down. Our headline inflation projection for 2025 is actually at zero. So it’s down from 0.8 percent to zero. So China is facing stronger deflationary forces as a result of these trade tensions.

Mr. De Haro: OK. I am going to move to this side. The gentleman with the glasses here.

QUESTION: What impact did the oil price also have in exporting and importing countries in the Middle East? Thank you.

Mr. De Haro: Go ahead.

Mr. Gourinchas: So we have seen oil prices declining since our last projections, and the decline in oil prices in our and our interpretation is coming mostly from weaker global demand, so it’s the weakening of global activity that is driving the decline in prices. There has been some increase in supply coming from OPEC Plus countries, but broadly speaking, the decline is mostly coming from weaker demand.

So that is going to play out in ways you sort of would expect. The commodity exporters are going to face lower export revenues from the decline in oil prices. That’s going to weigh on their fiscal outlook, on their growth.

For those countries that are oil importers, it’s going to lower inflation pressures because that‑‑lower oil prices is going to feed into lower headline inflation. It’s going to also provide some modest support to economic activity there.

Deniz, anything to add on oil prices or‑‑or Petya?

Ms. Koeva Brooks: No, I don’t.

Mr. De Haro: OK. We are going to move to the center. I am going to get the gentleman with the white shirt there.

QUESTION: h I am not going to ask another question about the U.K., you will be pleased to know. Over the last week we have seen a number of attacks by the White House on the independence of the Federal Reserve. How destabilizing do you think this might be for financial markets?

Mr. Gourinchas: So central banks are facing a delicate moment. As I have explained in many countries, the impact of the tariffs is going to be to increase recessionary forces and it is going to lower price pressures. And that will help central banks cut interest rates faster and provide some support to their economies. But in other countries ‑‑ and in our projections, the U.S. is in that category‑‑the tariffs are going to increase price pressures. Price pressures in the U.S. are increasing for other reasons as well. Service prices have been quite‑‑inflation of service prices have been quite strong. And that is something that we are seeing already. But the tariffs are likely to increase price pressures. We are projecting inflation to remain at 3 percent in the U.S. this year, the same level as last year, headline inflation.

So in that context, if you also think about where we are coming from, we are coming from a period of very elevated inflation. We are just coming off the cost‑of‑living crisis, a surge in inflation rates to double digits that we haven’t seen in more than a generation. So the critical thing is to make sure that inflation expectations remain anchored, that everyone remains convinced that central banks will do what is necessary to bring inflation back to central bank targets in an orderly manner. And central banks have instruments to do this. They have their interest rate instruments. They have various instruments of monetary policy. But one critical aspect of what they do is coming from their credibility. So central banks need to remain credible. And part of that credibility is built upon their central bank independence. And so from that perspective, it’s very important to preserve that.

Mr. De Haro: OK. We are going to have time for two questions. One of them is going back to WebEx. I see Weier, please. Come in.

QUESTION: Yes.I have a question.

You mentioned that the global economic system is being reset. And I am not sure if one of the early signs in the financial markets, as we see that the markets moving from American exceptionalism to the sort of sell the U.S. narrative. So could you assess the implications for the financial markets and the world economy, as a whole?

Mr. Gourinchas: Yeah, well we have seen some volatility in the markets, of course, whenever there is going to be potentially a significant change in the economic structure of the global economy. I think we are bound to see some reassessment. And investors are going to try to figure out what’s happening, and that’s going to inject volatility. And we are seeing some of that.

The good news is a lot of that volatility we have seen in the last few weeks has not led to significant market dislocations or market stress to levels that would, for instance, have necessitated the interventions by central banks around the world.

So whether you are looking at equity markets, whether you are looking at bond markets, whether you are looking at currency markets, what we are saying is a reassessment of the world we are in now and that means that there is a reassessment of valuations of risk assets, of different currencies. But that is happening in an orderly manner. So from that perspective, we are seeing a system that is quite resilient, that remained resilient but, of course, we are watching carefully and there has been some tightening of financial conditions and that’s something to be looking out for. We want to make sure that it doesn’t get to a level where the stress in the financial system would become too extreme.

Mr. De Haro: OK. The lady here in the first row has been waiting patiently. Please go ahead.

QUESTION: Thank you, Jose. I want to ask about the trading tensions impact on low‑income countries. You mentioned there are like downgrading for emerging markets but how about like those small countries who have lower income as a group, have you assessed the particular impact on them in these ongoing trade tensions? Thank you.

Mr. Gourinchas: OK. Well thanks. For low‑income countries as a group, we are also seeing a downgrade in which we report in our report of 0.4 percentage points. We are expecting growth of 4.2 percent in 2025. So the 0.4 is very similar to what we are seeing at the aggregate levels, 0.5. So from that perspective it looks quite the same. However, there are also a lot of differences across countries, and when we look more carefully, you might see some vulnerable countries, especially in sub‑Saharan Africa. But elsewhere as well‑‑who could face very challenging conditions as a result of the tariffs in an environment in which many of the countries, low‑income countries have been facing a funding squeeze for a number of years now, private capital flows to this region have been drying up or have been coming on very expensive terms. We are seeing a drying up also of some official aid flows. So some of these countries have very limited fiscal space. Near a situation where the situation could become more challenging.

Now, on the flip side, the fact that we are seeing commodity prices coming down for many commodities will help some of them. The commodity importers in that group will hurt the ones who are commodity exporters. And there are a number of countries among the low-income group that are commodity exporters, so that is adding some additional pressure on them.

Mr. De Haro: I am going to make an exception and just one last question. I am going to go with the gentleman in the white shirt there. He has been waiting patiently, too. And don’t get frustrated. There are going to be many opportunities for you to ask questions.

QUESTION: Thank you, Jose. AFP.

I had a quick question about Spain because that’s the only countries among advanced economies where you had an upward revision. It’s going to be way better than the eurozone and even better than other advanced economies. What are the underlying reasons for that? And you formally talked much about tourism but are there any other things that might be pointed out? Thank you.

Mr. Gourinchas: Yes, indeed. Spain is doing better than its peers. Petya, would you like to talk about it?

Ms. Koeva Brooks: Sure. Indeed. We are actually having an upgrade for Spain this year, which is a rare occurrence in the many, many downgrades that we have had for many other countries. This is partly because the Spanish economy just had such strong momentum in 2024, coming into 2025. And part of that was due to the very strong services exports as well as the very strong labor accumulation. Part of that related to immigration. But all of that being said, Spain is still being affected indirectly and directly by the tariffs and the uncertainty associated with that. It’s just that, as I said, that underlying [strength is kind of having a bigger impact in the near term. But then again, in 2026, we do project kind of a slowing of growth to about 1.8.

Mr. De Haro: OK. And on that point, I want to thank you, everyone, on behalf of Pierre‑Olivier, Petya, Deniz, the Research Department, the Communications Department. Some reminders. Next press briefing is going to happen in this same room, Global Financial Stability Report, please stay tuned. Tomorrow you have the Fiscal Monitor, and then later in the week, you have the Managing Director’s press briefing and also all the regional press briefings that we have been talking about. Thank you very much for your time. If you have questions, comments, send them my way to media@imf.org and hopefully you have a great week. I am sure it’s going to be busy.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Jose De Haro

Phone: +1 202 623-7100Email: MEDIA@IMF.org

https://www.imf.org/en/News/Articles/2025/04/22/tr-04222025-weo-press-briefing

MIL OSI

MIL OSI Russia News –

April 23, 2025

MIL-OSI USA: ON EARTH DAY, CASTEN, SCHATZ INTRODUCE LEGISLATION TO ADDRESS THE COSTS AND FINANCIAL RISKS OF CLIMATE CHANGE

Source: United States House of Representatives – Representative Sean Casten (IL-06)

April 22, 2025

Washington, D.C. – U.S. Representative Sean Casten (D-IL-06) and U.S. Senator Brian Schatz (D-Hawai‘i) introduced the Climate Change Financial Risk Act, legislation that directs the Federal Reserve to conduct stress tests on large financial institutions to measure their resilience to climate-related financial risks.

“Risk is risk—we should not be treating some risks different from others just because they’re hard to quantify. Federal regulators are legally obligated to ensure a stable and efficient financial system, and that means reducing the risk of a climate-driven financial crisis,” said Senator Schatz. “Instead of taking steps to reduce the risks facing communities across the country from increasingly frequent and severe extreme weather and disasters—including significantly higher costs for homeowners insurance—the Trump administration is trying to roll back our progress in the climate fight and gut the programs that will make us safer.”

“Climate change poses a grave and imminent threat to the stability of our financial system. It is essential that our regulators establish parameters so that our financial institutions adequately prepare for and respond to these risks, and that they do so before the next extreme weather crisis strikes,” said Representative Casten. “Our bill will move us toward safeguarding our financial systems—from short-term climate impacts, such as direct uninsured losses from wildfires, hurricanes, and flooding events, as well as from long-term global shifts to a net-zero economy, which may require a reshaping of a bank’s lending and investment activities.”

Climate change is increasing the frequency and severity of extreme weather events like floods and wildfires. It is also changing long-term climate patterns in ways that will ultimately affect every sector of our economy. Financial institutions face the risk of direct losses from severe weather events and fundamental changes like drought and sea level rise—for example, lower property values from increased flooding. They also face risks from market instability, an erosion of investor confidence, and changes in carbon-intensive asset values resulting from government policies and consumer preferences.

These risks to our financial system are critical for financial institutions to measure and manage, as recognized in the pilot climate scenario analysis exercise that the Federal Reserve conducted in 2023 and the Principles for Climate-Related Financial Risk Management for Large Financial Institutions published by agencies in 2023. The Office of the Comptroller of the Currency announced in March 2025 that it was withdrawing from its participation in these principles. The Climate Change Financial Risk Act will make sure that financial institutions manage climate risks with stress tests that quantify and measure their resilience.

The Climate Change Financial Risk Act would require the Federal Reserve to create climate change scenarios for financial stress tests, with input from federal scientific agencies and an advisory group of climate scientists and climate economists. The Federal Reserve would then conduct stress tests every two years on the largest financial institutions. The biennial tests will require each covered institution to create and update a resolution plan, which will describe how the institution plans to evolve its capital planning, balance sheet and off-balance sheet exposures, and other business operations to respond to the most recent test results. Federal Reserve objections to a resolution plan would limit the institution’s ability to proceed with capital distributions until it improves its plan. The Federal Reserve will also partner with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation to design a survey to assess the ability of a broader set of financial institutions to withstand climate risks.

Casten and Schatz’s legislation is cosponsored by U.S. Senators Elizabeth Warren (D-Mass.), Jeff Merkley (D-Ore.), Chris Van Hollen (D-Md.), Sheldon Whitehouse (D-R.I.), Patty Murray (D-Wash.), Martin Heinrich (D-N.M.), and Cory Booker (D-N.J), and U.S. Representatives Stephen Lynch (D-Mass.), Emanuel Cleaver (D-Mo.), Jared Huffman (D-Calif.), Kevin Mullin (D-Calif.), Sarah Elfreth (D-Md.), and Salud Carbajal (D-Calif.).

“Those of us in the West are already experiencing the cost of climate inaction firsthand – from higher home insurance rates and utility bills for hardworking families to lower profits for producers. As the impacts of climate change intensify, we need to do everything we can to make our local economies more resilient for families, workers, and small businesses,” said Senator Heinrich. “This Earth Day, I’m proud to introduce the Climate Change Financial Risk Act with Senator Schatz to protect New Mexicans from the costly consequences of worsening climate change by strengthening the ability of our financial institutions to withstand extreme weather events like prolonged droughts and wildfires, which can trigger market instability and shake investor confidence.”

“Trump’s Dirty Energy First strategy is fanning the flames of climate chaos, and it’s essential to understand the risk that poses to our major financial institutions,” said Senator Merkley. “We must not ignore the danger climate change poses to the economic security of hardworking Americans.”

The Climate Change Financial Risk Act is supported by the League of Conservation Voters, Ceres, the Sierra Club, Public Citizen, and Americans for Financial Reform.

“US regulators must get back in the business of managing the systemic financial risks posed by increasing floods, fires, and storms,” said Steven M. Rothstein, Managing Director of the Accelerator for Sustainable Capital Markets, Ceres. “We commend Senator Schatz and Representative Casten for reintroducing this legislation and laying out a clear role for the Federal Reserve Board to address climate-related financial risks. This legislation will provide the clarity and analysis needed to ensure the financial industry makes informed decisions that protect individual institutions from climate-related shocks and insulate the financial system from widespread loss.”

“As financial regulators retreat under political pressure, this bill represents a much-needed step to ensure our financial system is better prepared for the growing risks of climate change. Investors need regulators to provide clear, forward-looking assessments of systemic risk — and to ensure that financial institutions aren’t throwing more fuel on the fire of the climate crisis. With climate disasters escalating and financial consequences mounting, leaders at all levels of government must act to build a more stable and sustainable financial system. We applaud Sen. Schatz and Rep. Casten for their continued leadership to make that happen,” said Ben Cushing, Sustainable Finance Campaign Director, the Sierra Club.

The full text of the bill is available here.

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MIL OSI USA News –

April 23, 2025

MIL-OSI USA: Animal That Once Lived With Dinosaurs Helps Keep NASA Kennedy In Balance

Source: NASA

They’re known as “living fossils”.
For over 450 million years, horseshoe crabs have been an ecologically vital part of our planet. They’re one of the few surviving species on Earth dating back to the dinosaurs.
At NASA’s Kennedy Space Center in Florida, the American horseshoe crab (Limulus polyphemus) is one of more than 1,500 types of animals and plants you can find living on its over 144,000 acres, the majority of which is managed by the U.S. Fish and Wildlife Service and National Park Service. Sharing a boundary with the Merritt Island National Wildlife Refuge and Canaveral National Seashore, NASA Kennedy is one of the most biologically diverse places in the United States.
The center’s land, water, and air species live alongside the symbols of America’s space program: the vital facilities and infrastructure that support the many launches at NASA Kennedy and Cape Canaveral Space Force Station as well as the rockets enabling humanity’s exploration of the cosmos.

Preserving NASA Kennedy’s wildlife while also fulfilling the agency’s mission requires a balanced approach. The American horseshoe crab exemplifies that balance.
Horseshoe crabs are keystone species in coastal and estuary systems like the ones surrounding Earth’s premier spaceport. By themselves, these resilient arthropods are a strong indicator of how an ecosystem is doing to support the migratory birds, sea turtles, alligators and other wildlife who rely on it for their survival.
“The presence and abundance of horseshoe crabs influence the structure and functioning of the entire ecosystem,” said James T. Brooks, an environmental protection specialist at NASA Kennedy. “Their eggs provide a vital food source for many shorebirds in coastal habitats, and their feeding activities help shape the composition of plants and animals that live at the bottom of the ocean or in rivers and lakes. Changes in horseshoe crab populations can signal broader ecological issues, such as pollution or habitat loss.”
As featured recently on NASA+, biologists survey NASA Kennedy’s beaches regularly for horseshoe crabs, counting each one they spot and tagging them with devices that lets researchers study their migration patterns and survival rates. The devices also track the crabs’ spawning activity, habitat health, and population trends, especially during peak breeding seasons in spring and summer.

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All this data helps in assessing the overall health of NASA Kennedy’s ecosystem, but horseshoe crabs also play a vital role in humanity’s health. Their blue, copper-based blood contains a substance called Limulus Amebocyte Lysate, critical for detecting bacterial contamination in medical equipment, pharmaceuticals, and vaccines.
Their unique value in ensuring biomedical safety underscores why NASA Kennedy emphasizes ecological monitoring in addition to its roles in the global space economy, national defense, and space exploration.

At NASA Kennedy, horseshoe crabs are protected and monitored through habitat restoration projects like rebuilding shorelines eroded by storms and minimizing human impact on nesting sites. These initiatives ensure that the spaceport’s operations coexist harmoniously with nature and deepen our understanding of Earth’s interconnected ecosystems.
On this Earth Day, NASA Kennedy celebrates the important role these ancient mariners play as we launch humanity’s future.

MIL OSI USA News –

April 23, 2025

MIL-OSI Economics: JP Morgan and UBS top M&A financial advisers in retail sector during Q1 2025, reveals GlobalData

Source: GlobalData

JP Morgan and UBS top M&A financial advisers in retail sector during Q1 2025, reveals GlobalData

Posted in Business Fundamentals

JP Morgan and UBS were the top mergers and acquisitions (M&A) financial advisers in the retail sector during the first quarter (Q1) of 2025 by value and volume, respectively, according to the latest financial advisers league table by GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Deals Database reveals that JP Morgan achieved the leading position in terms of value by advising on $28.7 billion worth of deals. Meanwhile, UBS led in terms of volume by advising on five deals.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Both JP Morgan and UBS registered year-on-year (YoY) improvement in terms of deal volume and value as well as their respective ranking during Q1 2025. While JP Morgan’s ranking in terms of value improved from the second position in Q1 2024 to the top position in 2025, UBS went ahead from 11^th to the top position by volume during the same period.

“Apart from leading by value in Q1 2025, JP Morgan also occupied the second position by volume. Similarly, UBS, apart from leading by volume, also occupied the third position by value.”

Wells Fargo occupied the second position in terms of value, by advising on $26.3 billion worth of deals, followed by UBS with $25.4 billion, Morgan Stanley with $24.7 billion and Citi with $23.7 billion.

Meanwhile, JP Morgan occupied the second position in terms of volume with four deals, followed by Morgan Stanley with three deals, Bank of America with three deals and Wells Fargo with two deals.

MIL OSI Economics –

April 23, 2025

MIL-OSI Economics: Bank of America top M&A financial adviser in construction sector during Q1 2025, reveals GlobalData

Source: GlobalData

Bank of America top M&A financial adviser in construction sector during Q1 2025, reveals GlobalData

Posted in Business Fundamentals

Bank of America was the top mergers and acquisitions (M&A) financial adviser in the construction sector during the first quarter (Q1) of 2025 by value as well as volume, according to the latest financial advisers league table by GlobalData, a leading data and analytics company.

An analysis of GlobalData’s Deals Database reveals that Bank of America achieved the leading position by advising on four deals worth $12.1 billion.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “There was an year-on-year (YoY) improvement in the total volume and value of deals advised by Bank of America during Q1 2025. Resultantly, it went ahead from occupying the 31^st position by volume in Q1 2024 to top the chart by this metric in Q1 2025. Bank of America’s ranking by value also jumped from 14^th to the top position during this period.”

Goldman Sachs occupied the second position in terms of value, by advising on $12 billion worth of deals, followed by Lazard with $11.5 billion, JP Morgan with $11.5 billion and Jefferies with $8.8 billion.

Meanwhile, Generational Group occupied the second position in terms of volume with four deals, followed by Goldman Sachs with three deals, Lazard with three deals and Morgan Stanley with three deals.

MIL OSI Economics –

April 23, 2025

MIL-OSI Economics: France gives EUR 1.9 million to build capacity in developing economies, LDCs

Source: World Trade Organization

Through the agreement signed by France and the WTO in July 2024, France provides, over a period of three years, funding of EUR 6 million to the French-Irish Mission Programme, the WTO Chairs Programme and the Standards and Trade Development Facility. These programmes are aimed at helping government officials from developing economies and LDCs better implement global trade rules and standards and at helping academic institutions provide support for trade policy-making.

“Our support for technical assistance in the WTO is a concrete expression of our commitment to an inclusive multilateral system,” France’s WTO Ambassador Emmanuelle Ivanov-Durand said. “Technical assistance is an important part of the WTO – it increases the number of people who are able to participate in the multilateral trading system and ultimately reap its benefits. France is proud to support the French-Irish Mission Programme, the WTO Chairs Programme and the Standards and Trade Development Facility, especially in these difficult times when resources are increasingly difficult to mobilize and when the multilateral system is under strain.”

The French-Irish Mission Programme, sponsored by France and Ireland, will receive EUR 900,000 (CHF 870,000) to finance the placement of government officials at the permanent missions of developing economies, LDCs and observers in Geneva.

A total of EUR 550,000 (CHF 530,000) will support the WTO Chairs Programme aimed at helping academic institutions in developing and least developed members and observers build and sustain their expertise in international trade through projects focusing on research, curriculum development and outreach.

The Standards and Trade Development Facility will receive EUR 500,000 (CHF 480,000) to help developing economies and LDCs implement food safety, animal health and plant health standards required for international trade. It will also help to improve their sanitary and phytosanitary capacity in line with the most recent STDF Strategy covering the period 2025-2030.

Deputy Director-General Zhang said: “Given the pace of changes we are experiencing in trade, the value of technical assistance is more important than ever. With France’s targeted support, these programmes continue to make significant contributions to developing economies by providing hands-on experience at the WTO, facilitating practical projects and establishing sustainable systems to help government officials tackle complex new areas with the help of academia.”

France has contributed just over EUR 34 million (approximately CHF 33 million) to the various WTO trust funds over more than 20 years.

MIL OSI Economics –

April 23, 2025

MIL-OSI Economics: Call for applications launched for support to women exporters through WTO-ITC WEIDE Fund

Source: WTO

Headline: Call for applications launched for support to women exporters through WTO-ITC WEIDE Fund

A joint initiative of the World Trade Organization (WTO) and the International Trade Centre (ITC), the WEIDE Fund is supported by a USD 50 million commitment to empower women entrepreneurs and help them thrive in global markets through the use of digital tools and platforms.
WTO Director-General Dr Ngozi Okonjo-Iweala emphasized the importance of inclusive access to digital trade opportunities: “Digital trade is reshaping the global economy. Women — including those in developing countries — must be at the forefront. The WTO-ITC WEIDE Fund is about powering growth, innovation and job creation. It reflects the WTO’s broader commitment to sustainable and inclusive re-globalization, where no one is left behind.”
The WEIDE Fund offers two types of grants:
Discovery Grant (up to USD 5,000): For early-stage businesses exploring digital trade opportunities.
Booster Grant (up to USD 30,000): For businesses ready to scale up their digital presence and expand into global markets.
Beyond financial support, the WEIDE Fund provides technical assistance, mentorship and access to international business networks. The initiative aims to build the long-term competitiveness and resilience of women-led micro, small and medium-sized enterprises (MSMEs) involved in e-commerce, online services, or other forms of digital trade as well as those ready to engage in these activities.
ITC Executive Director Pamela Coke-Hamilton highlighted the importance of removing barriers for women in global trade: “ITC is committed to breaking barriers for women exporters and ensuring they have the resources needed to succeed in the digital economy. The WTO-ITC WEIDE Fund is an opportunity for women-led businesses to access not only funding but also the expertise and networks critical for long-term success.”
The WEIDE Fund announced on 7 March the selection of four pilot beneficiary countries: Dominican Republic, Jordan, Mongolia and Nigeria. Business support organizations in these countries were selected from a competitive call for proposals to implement programmes that can help women entrepreneurs expand their business through international trade and digitalization.
To be eligible for support, women-led businesses must be:
Registered and operational in the Dominican Republic, Jordan, Mongolia, or Nigeria
Export-ready and keen to engage in digital trade
Able to demonstrate potential for business growth and job creation
The application period runs from 22 April to 18 May 2025 for the Dominican Republic, Mongolia and Nigeria. Applications from Jordan will be accepted at a later stage.
In each country, the WEIDE Fund collaborates with the following business support organizations (BSOs) to strengthen outreach and local engagement:
ProDominicana
Jordan Enterprise Development Corporation (JEDCO)
Mongolian National Chamber of Commerce and Industry (MNCCI)
Nigerian Export Promotion Council (NEPC)
The WEIDE Fund has been made possible through the support of the United Arab Emirates and the FIFA World Cup Qatar 2022 Legacy Fund.
For more details on eligibility and how to apply, visit wto.org/weidefund or contact [email protected].

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MIL OSI Economics –

April 23, 2025

MIL-OSI Economics: Verizon delivered strong financial growth with industry-leading wireless service revenue in 1Q 2025

Source: Verizon

Headline: Verizon delivered strong financial growth with industry-leading wireless service revenue in 1Q 2025

Download News Release PDF

Download 1Q Financials PDF

Download Infographic PDF

Download Non-GAAP Reconciliations PDF

Key 1Q 2025 Highlights

Industry-leading total wireless service revenue¹ of $20.8 billion
Best wireless retail core prepaid² net additions since the TracFone acquisition
Continued to take broadband market share with strong demand for Fios and fixed wireless access
Verizon exits first quarter with momentum in both mobility and broadband

NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ) today reported strong financial performance for the first-quarter of 2025, fueled by innovative and segmented product offerings that meet the ever-changing needs of consumers and businesses across market sectors. The company’s strategically designed portfolio of diversified wireless and broadband products and adjacent services positioned Verizon for a successful quarter, as well as resiliency in any economic environment. With a focus on growing connections and strengthening customer relationships, the company’s strategic and disciplined approach drove success across its three priorities of growing wireless service revenue, expanding adjusted EBITDA³ and generating strong free cash flow³. Verizon remains confident in achieving its 2025 goals and delivering on its full-year guidance.

“Verizon plays an essential role in our customers’ lives and our differentiated value proposition delivers what customers want and need, on their terms,” said Verizon Chairman and CEO Hans Vestberg. “We continue to drive our multi-year customer-first strategy, launching new programs such as our 3-year price lock and free phone guarantee for consumers and My Biz Plan for small and medium sized businesses. With our high quality customer base, network superiority and position of financial strength, we have the momentum and flexibility to continue innovating to meet customer needs and invest for growth.”

1Q 2025 Highlights

Consolidated: Improved earnings per share (EPS), revenue and net income in first-quarter 2025, highlighting strong financials

EPS of $1.15 in first-quarter 2025 compared to EPS of $1.09 in first-quarter 2024; adjusted EPS³, excluding special items, of $1.19 compared to $1.15 in first-quarter 2024.
Total operating revenue of $33.5 billion in first-quarter 2025, up 1.5 percent year over year.
Cash flow from operations totaled $7.8 billion in first-quarter 2025, up from $7.1 billion in first-quarter 2024.
Free cash flow³ was $3.6 billion in first-quarter 2025, up from $2.7 billion in first-quarter 2024.
Consolidated net income for first-quarter 2025 was $5.0 billion compared to $4.7 billion in first-quarter 2024. Consolidated adjusted EBITDA³ was $12.6 billion in first-quarter 2025 compared to $12.1 billion in first-quarter 2024.
Verizon’s total unsecured debt as of the end of first-quarter 2025 was $117.3 billion, compared to $117.9 billion at the end of fourth-quarter 2024 and $128.4 billion at the end of first-quarter 2024. The company’s net unsecured debt³ at the end of first-quarter 2025 was $115.1 billion. At the end of first-quarter 2025, Verizon’s ratio of unsecured debt to net income (LTM) was 6.4 times and net unsecured debt to consolidated adjusted EBITDA ratio³ was 2.3 times.

Mobility: Industry-leading wireless service revenue in first-quarter 2025

Total wireless service revenue in first-quarter 2025 was an industry-leading $20.8 billion, up 2.7 percent year over year.
Wireless equipment revenue of $5.4 billion in first-quarter 2025, up 0.7 percent year over year.
Total postpaid phone net losses of 289,000 in first-quarter 2025 compared to 114,000 postpaid phone net losses in first-quarter 2024.

Broadband: Verizon continued to take broadband market share with strong demand for best in class Fios and fixed wireless access offerings

Broadband net additions of 339,000 in first-quarter 2025.
Total fixed wireless access net additions of 308,000 in first-quarter 2025, growing the base to over 4.8 million fixed wireless access subscribers. The company is well-positioned to achieve the next milestone of 8 to 9 million fixed wireless access subscribers by 2028.
Fios internet net additions were 45,000 in first-quarter 2025 compared to 53,000 in first-quarter 2024.
Total broadband connections grew to more than 12.6 million as of the end of first-quarter 2025, representing a 13.7 percent increase year over year.

Verizon Consumer: Total revenue increases year over year to $25.6 billion in first-quarter 2025, driven by service revenue gains

Total Verizon Consumer revenue in first-quarter 2025 was $25.6 billion, an increase of 2.2 percent year over year, predominantly driven by gains in wireless service revenue.
Consumer wireless service revenue in first-quarter 2025 was $17.2 billion, up 2.6 percent year over year.
Consumer wireless retail postpaid churn was 1.13 percent in first-quarter 2025, and wireless retail postpaid phone churn was 0.90 percent.
Consumer wireless postpaid average revenue per account (ARPA) of $146.46 in first-quarter 2025, an increase of 3.6 percent year over year.
In first-quarter 2025, Consumer reported 356,000 wireless retail postpaid phone net losses compared to 194,000 postpaid phone net losses in first-quarter 2024.
In first-quarter 2025, Consumer reported 137,000 wireless retail core prepaid² net additions compared to 131,000 net losses in first-quarter 2024.
Consumer reported 199,000 fixed wireless net additions and 41,000 Fios Internet net additions in first-quarter 2025. Consumer Fios revenue was $2.9 billion in first-quarter 2025.
In first-quarter 2025, Consumer operating income was $7.4 billion, an increase of 0.7 percent year over year, and segment operating income margin was 29.0 percent, compared to 29.4 percent in first-quarter 2024. Segment EBITDA³ in first-quarter 2025 was $11.0 billion, an increase of 2.7 percent year over year. These results were driven by improvements in Consumer wireless service revenue. Segment EBITDA margin³ in first-quarter 2025 was 42.8 percent compared to 42.6 percent in first-quarter 2024.

Verizon Business: Operating income increases with strong wireless service revenue growth

Total Verizon Business revenue was $7.3 billion in first-quarter 2025, a decrease of 1.2 percent year over year.
Business wireless service revenue in first-quarter 2025 was $3.6 billion, an increase of 2.8 percent year over year.
Business reported 94,000 wireless retail postpaid net additions in first-quarter 2025. This result included 67,000 postpaid phone net additions.
Business wireless retail postpaid churn was 1.52 percent in first-quarter 2025, and wireless retail postpaid phone churn was 1.15 percent.
Business reported 109,000 fixed wireless net additions in first-quarter 2025.
In first-quarter 2025, Verizon Business operating income was $664 million, an increase of 66.4 percent year over year, resulting in segment operating income margin of 9.1 percent, an increase from 5.4 percent in first-quarter 2024. Segment EBITDA³ in first-quarter 2025 was $1.7 billion, an increase of 10.3 percent year over year. Segment EBITDA margin³ in first-quarter 2025 was 23.1 percent, an increase from 20.7 percent in first-quarter 2024.

Outlook and guidance

The company does not provide a reconciliation for certain of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.

For 2025, Verizon continues to expect the following:

Total wireless service revenue¹ growth of 2.0 percent to 2.8 percent.
Adjusted EBITDA³ growth of 2.0 percent to 3.5 percent.
Adjusted EPS³ growth of 0 to 3.0 percent.
Cash flow from operations of $35.0 billion to $37.0 billion.
Capital expenditures between $17.5 billion and $18.5 billion.
Free cash flow³ of $17.5 billion to $18.5 billion.

Our 2025 financial guidance does not reflect any assumptions regarding the potential impacts of the evolving tariff environment.

¹ Total wireless service revenue represents the sum of Consumer and Business segments. Reflects the reclassification of recurring device protection and insurance related plan revenues from other revenue into wireless service revenue in the first quarter of 2025. Where applicable, historical results have been recast to conform to the current period presentation.

² Represents total prepaid results excluding our SafeLink brand.

³ Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).

Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.8 billion in 2024. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.

Forward-looking statements

In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors’ use of, developments in technology, including artificial intelligence, and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; changes to international trade and tariff policies and related economic and other impacts; cyberattacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors’ provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our business, operations, employees and customers; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions, divestitures and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.

MIL OSI Economics –

April 23, 2025

MIL-OSI Economics: World Economic Outlook Press Briefing

Source: International Monetary Fund