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  • MIL-OSI: Oaktree Specialty Lending Corporation Announces Second Fiscal Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, CA, May 01, 2025 (GLOBE NEWSWIRE) — Oaktree Specialty Lending Corporation (NASDAQ: OCSL) (“Oaktree Specialty Lending” or the “Company”), a specialty finance company, today announced its financial results for the fiscal quarter ended March 31, 2025.

    Financial Highlights for the Quarter Ended March 31, 2025

    • Total investment income was $77.6 million ($0.90 per share) for the second fiscal quarter of 2025, as compared with $86.6 million ($1.05 per share) for the first fiscal quarter of 2025. Adjusted total investment income was $77.2 million ($0.90 per share) for the second fiscal quarter of 2025, as compared with $87.1 million ($1.06 per share) for the first fiscal quarter of 2025. The decrease was driven by lower interest income, which was primarily attributable to a smaller average investment portfolio, the impact of certain investments that were placed on non-accrual status and decreases in reference rates.
    • GAAP net investment income was $39.1 million ($0.45 per share) for the second fiscal quarter of 2025, as compared with $44.3 million ($0.54 per share) for the first fiscal quarter of 2025. The decrease for the quarter was primarily driven by lower total investment income, partially offset by lower interest expense and income-based (“Part I”) incentive fees (net of fees waived).
    • Adjusted net investment income was $38.7 million ($0.45 per share) for the second fiscal quarter of 2025, as compared with $44.7 million ($0.54 per share) for the first fiscal quarter of 2025. The decrease for the quarter was primarily driven by lower adjusted total investment income, partially offset by lower interest expense and lower Part I incentive fees (net of fees waived).
    • Net asset value (“NAV”) per share was $16.75 as of March 31, 2025, down as compared with $17.63 as of December 31, 2024. The decline from December 31, 2024 primarily reflected losses on certain debt and equity investments.
    • Originated $407.0 million of new investment commitments and received $279.4 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended March 31, 2025. The weighted average yield on new debt investments was 9.5%.
    • Total debt outstanding was $1,470.0 million as of March 31, 2025. The total debt to equity ratio was 1.00x, and the net debt to equity ratio was 0.93x, after adjusting for cash and cash equivalents.
    • Oaktree Capital I, L.P. purchased $100.0 million of shares of OCSL common stock on February 3, 2025 at the Company’s net asset value as of January 31, 2025, which was $17.63 per share and represented a 10% premium to the closing stock price.
    • The Company issued $300 million of unsecured notes during the quarter ended March 31, 2025 that mature on February 27, 2030 and bear interest at a rate of 6.340%. In connection with the issuance of the 2030 Notes, the Company entered into an interest rate swap agreement under which the Company receives a fixed interest rate of 6.340% and pays a floating interest rate of the three-month SOFR plus 2.192% on a notional amount of $300.0 million. Additionally, the Company repaid $300 million of unsecured notes that matured on February 25, 2025.
    • Liquidity as of March 31, 2025 was composed of $97.8 million of unrestricted cash and cash equivalents and over $1.0 billion of undrawn capacity under the Company’s credit facilities (subject to borrowing base and other limitations). Unfunded investment commitments were $299.8 million, or $272.6 million excluding unfunded commitments to the Company’s joint ventures. Of the $272.6 million, approximately $252.0 million can be drawn immediately with the remaining amount subject to certain milestones that must be met by portfolio companies or other restrictions.
    • A quarterly and supplemental cash distribution was declared of $0.40 per share and $0.02 per share, respectively, payable in cash on June 30, 2025 to stockholders of record on June 16, 2025.

    “Certain challenged portfolio company investments weighed on our results in the second quarter. We are focused on resolving these issues while also positioning our portfolio to deliver more consistent performance going forward,” stated Armen Panossian, Chief Executive Officer and Co-Chief Investment Officer.

    “We are focused on further diversifying our portfolio by selectively investing in companies we believe are well positioned to deliver attractive returns given overall market uncertainty caused by tariffs, inflation and high interest rates. Historically, in periods of market volatility, our firm-wide DNA has enabled us to capitalize on opportunities while others are sidelined, and we have ample dry powder for new investments.”

    Distribution Declaration

    The Board of Directors declared a quarterly distribution of $0.40 per share, payable in cash on June 30, 2025 to stockholders of record on June 16, 2025. The Board of Directors also declared a supplemental distribution of $0.02 per share, payable in cash on June 30, 2025 to stockholders of record on June 16, 2025.

    Distributions are paid primarily from distributable (taxable) income. To the extent taxable earnings for a fiscal taxable year fall below the total amount of distributions for that fiscal year, a portion of those distributions may be deemed a return of capital to the Company’s stockholders.

    Results of Operations

      For the three months ended
    		  
    ($ in thousands, except per share data) March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    		  
    GAAP operating results:                        
    Interest income $ 70,523     $ 78,422     $ 85,256    
    PIK interest income   4,531       5,728       4,816    
    Fee income   1,742       1,679       2,546    
    Dividend income   772       818       1,411    
    Total investment income   77,568       86,647       94,029    
    Net expenses   38,235       42,082       52,662    
    Net investment income before taxes   39,333       44,565       41,367    
    (Provision) benefit for taxes on net investment income   (278 )     (263 )     —    
    Net investment income   39,055       44,302       41,367    
    Net realized and unrealized gains (losses), net of taxes   (75,304 )     (37,063 )     (32,030 )  
    Net increase (decrease) in net assets resulting from operations $ (36,249 )   $ 7,239     $ 9,337    
    Total investment income per common share $ 0.90     $ 1.05     $ 1.18    
    Net investment income per common share $ 0.45     $ 0.54     $ 0.52    
    Net realized and unrealized gains (losses), net of taxes per common share $ (0.88 )   $ (0.45 )   $ (0.40 )  
    Earnings (loss) per common share — basic and diluted $ (0.42 )   $ 0.09     $ 0.12    
    Non-GAAP Financial Measures1:                        
    Adjusted total investment income $ 77,195     $ 87,070     $ 97,340    
    Adjusted net investment income $ 38,682     $ 44,725     $ 44,678    
    Adjusted net realized and unrealized gains (losses), net of taxes $ (75,248 )   $ (37,124 )   $ (35,344 )  
    Adjusted earnings (loss) $ (36,566 )   $ 7,601     $ 9,334    
    Adjusted total investment income per share $ 0.90     $ 1.06     $ 1.22    
    Adjusted net investment income per share $ 0.45     $ 0.54     $ 0.56    
    Adjusted net realized and unrealized gains (losses), net of taxes per share $ (0.88 )   $ (0.45 )   $ (0.44 )  
    Adjusted earnings (loss) per share $ (0.43 )   $ 0.09     $ 0.12    
                             
    1 See Non-GAAP Financial Measures below for a description of the non-GAAP measures and the reconciliations from the most comparable GAAP financial measures to the Company’s non-GAAP measures, including on a per share basis. The Company’s management uses these non-GAAP financial measures internally to analyze and evaluate financial results and performance and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends for the Company and to review the Company’s performance without giving effect to non-cash income/gain/loss resulting from the merger of Oaktree Strategic Income Corporation (“OCSI”) with and into the Company in March 2021 (the “OCSI Merger”) and the merger of Oaktree Strategic Income II, Inc. (“OSI2”) with and into the Company in January 2023 (the “OSI2 Merger”) and, in the case of adjusted net investment income, without giving effect to capital gains incentive fees. The presentation of non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.
     
      As of
    		  
    ($ in thousands, except per share data and ratios) March 31, 2025
    (unaudited)
    		   December 31, 2024
    (unaudited)
    		   March 31, 2024
    (unaudited)
    		  
    Select balance sheet and other data:                        
    Cash and cash equivalents $ 97,838     $ 112,913     $ 125,031    
    Investment portfolio at fair value   2,892,771       2,835,294       3,047,445    
    Total debt outstanding (net of unamortized financing costs)   1,448,486       1,577,795       1,635,642    
    Net assets   1,475,113       1,449,815       1,524,099    
    Total debt to equity ratio   1.00 x     1.11 x     1.10 x  
    Net debt to equity ratio   0.93 x     1.03 x     1.02 x  
     

    Adjusted total investment income for the quarter ended March 31, 2025 was $77.2 million and included $70.2 million of interest income from portfolio investments, $4.5 million of payment-in-kind (“PIK”) interest income, $1.7 million of fee income and $0.8 million of dividend income. The $9.9 million quarterly decline in adjusted total investment income was primarily due to a $9.9 million decrease in interest income, which was primarily attributable to a smaller average investment portfolio, the impact of certain investments that were placed on non-accrual status and decreases in reference rates.

    Net expenses for the quarter ended March 31, 2025 totaled $38.2 million, down $3.8 million from the quarter ended December 31, 2024. The decrease for the quarter was primarily driven by $2.4 million of lower interest expense due to lower outstanding borrowings and lower reference rates on the Company’s floating rate debt and $1.5 million of lower Part I incentive fees (net of fees waived).

    Adjusted net investment income was $38.7 million ($0.45 per share) for the quarter ended March 31, 2025, which was down from $44.7 million ($0.54 per share) for the quarter ended December 31, 2024. The decline of $6.0 million primarily reflected $9.9 million of lower adjusted total investment income, offset by $3.9 million of lower net expenses.

    Adjusted net realized and unrealized losses, net of taxes, were $75.2 million for the quarter ended March 31, 2025.

    Portfolio and Investment Activity

      As of
    		  
    ($ in thousands) March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    		  
    Investments at fair value $ 2,892,771     $ 2,835,294     $ 3,047,445    
    Number of portfolio companies   152       136       151    
    Average portfolio company debt size $ 19,700     $ 22,000     $ 20,100    
                             
    Asset class:                        
    First lien debt   80.9 %     81.8 %     80.8 %  
    Second lien debt   3.4 %     3.0 %     5.4 %  
    Unsecured debt   5.0 %     3.9 %     2.6 %  
    Equity   4.6 %     4.8 %     4.8 %  
    JV interests   6.1 %     6.5 %     6.4 %  
                             
    Non-accrual debt investments:                        
    Non-accrual investments at fair value $ 125,643     $ 105,326     $ 69,128    
    Non-accrual investments at cost   217,401       138,703       127,720    
    Non-accrual investments as a percentage of debt investments at fair value   4.6 %     3.9 %     2.4 %  
    Non-accrual investments as a percentage of debt investments at cost   7.6 %     5.1 %     4.3 %  
    Number of investments on non-accrual   10       9       5    
                             
    Interest rate type:                        
    Percentage floating-rate   89.8 %     87.6 %     85.4 %  
    Percentage fixed-rate   10.2 %     12.4 %     14.6 %  
                             
    Yields:                        
    Weighted average yield on debt investments1   10.2 %     10.7 %     12.2 %  
    Cash component of weighted average yield on debt investments   9.3 %     9.5 %     11.0 %  
    Weighted average yield on total portfolio investments2   9.8 %     10.2 %     11.7 %  
                             
    Investment activity:                        
    New investment commitments $ 407,000     $ 198,100     $ 395,600    
    New funded investment activity3 $ 405,800     $ 201,300     $ 377,400    
    Proceeds from prepayments, exits, other paydowns and sales $ 279,400     $ 352,400     $ 322,600    
    Net new investments4 $ 126,400     $ (151,100 )   $ 54,800    
    Number of new investment commitments in new portfolio companies   24       5       20    
    Number of new investment commitments in existing portfolio companies   8       8       15    
    Number of portfolio company exits   8       13       15    
                             
    1 Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments, including the Company’s share of the return on debt investments in SLF JV I and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 (see Non-GAAP Financial Measures below) for the assets acquired in connection with the OCSI Merger and OSI2 Merger.
    2 Annual stated yield earned plus net annual amortization of OID or premium earned on accruing investments and dividend income, including the Company’s share of the return on debt investments in SLF JV I and Glick JV, and excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 for the assets acquired in connection with the OCSI Merger and OSI2 Merger.
    3 New funded investment activity includes drawdowns on existing revolver and delayed draw term loan commitments.
    4 Net new investments consists of new funded investment activity less proceeds from prepayments, exits, other paydowns and sales.
     

    As of March 31, 2025, the fair value of the investment portfolio was $2.9 billion and was composed of investments in 152 companies. These included debt investments in 131 companies, equity investments in 40 companies, and the Company’s joint venture investments in SLF JV I and OCSI Glick JV LLC (“Glick JV”). 21 of the equity investments were in companies in which the Company also had a debt investment.

    As of March 31, 2025, 94.9% of the Company’s portfolio at fair value consisted of debt investments, including 80.9% of first lien loans, 3.4% of second lien loans and 10.6% of unsecured debt investments, including the debt investments in SLF JV I and Glick JV. This compared to 81.8% of first lien loans, 3.0% of second lien loans and 9.6% of unsecured debt investments, including the debt investments in SLF JV I and Glick JV, as of December 31, 2024.

    As of March 31, 2025, there were ten investments on non-accrual status, which represented 7.6% and 4.6% of the debt portfolio at cost and fair value, respectively. As of December 31, 2024, there were nine investments on non-accrual status, which represented 5.1% and 3.9% of the debt portfolio at cost and fair value, respectively.

    SLF JV I

    The Company’s investments in SLF JV I totaled $128.6 million at fair value as of March 31, 2025, down 5.0% from $135.4 million as of December 31, 2024. The decrease was primarily driven by SLF JV I’s use of leverage and unrealized depreciation in the underlying investment portfolio.

    As of March 31, 2025, SLF JV I had $374.7 million in assets, including senior secured loans to 52 portfolio companies. This compared to $344.9 million in assets, including senior secured loans to 42 portfolio companies, as of December 31, 2024. SLF JV I generated cash interest income of $3.2 million for the Company during the quarter ended March 31, 2025, down from $3.4 million in the prior quarter. In addition, SLF JV I generated dividend income of $0.7 million for the Company during the quarter ended March 31, 2025, flat from the prior quarter. As of March 31, 2025, SLF JV I had $73.0 million of undrawn capacity (subject to borrowing base and other limitations) on its $270 million senior revolving credit facility, and its debt to equity ratio was 1.3x.

    Glick JV

    The Company’s investments in Glick JV totaled $47.3 million at fair value as of March 31, 2025, down 4.6% from $49.6 million as of December 31, 2024. The decrease was primarily driven by Glick JV’s use of leverage and unrealized depreciation in the underlying investment portfolio.

    As of March 31, 2025, Glick JV had $125.1 million in assets, including senior secured loans to 41 portfolio companies. This compared to $127.9 million in assets, including senior secured loans to 39 portfolio companies, as of December 31, 2024. Glick JV generated cash interest income of $1.3 million for the Company during the quarter ended March 31, 2025, down from $1.4 million in the prior quarter. As of March 31, 2025, Glick JV had $31.0 million of undrawn capacity (subject to borrowing base and other limitations) on its $100 million senior revolving credit facility, and its debt to equity ratio was 1.3x.

    Liquidity and Capital Resources

    As of March 31, 2025, the Company had total principal value of debt outstanding of $1,470.0 million, including $520.0 million of outstanding borrowings under its revolving credit facilities, $350.0 million of the 2.700% Notes due 2027, $300.0 million of the 7.100% Notes due 2029 and $300.0 million of the 6.340% Notes due 2030. The funding mix was composed of 35% secured and 65% unsecured borrowings as of March 31, 2025. The Company was in compliance with all financial covenants under its credit facilities as of March 31, 2025.

    As of March 31, 2025, the Company had $97.8 million of unrestricted cash and cash equivalents and over $1.0 billion of undrawn capacity on its credit facilities (subject to borrowing base and other limitations). As of March 31, 2025, unfunded investment commitments were $299.8 million, or $272.6 million excluding unfunded commitments to the Company’s joint ventures. Of the $272.6 million, approximately $252.0 million could be drawn immediately with the remaining amount subject to certain milestones that must be met by portfolio companies or other restrictions. The Company has analyzed cash and cash equivalents, availability under its credit facilities, the ability to rotate out of certain assets and amounts of unfunded commitments that could be drawn and believes its liquidity and capital resources are sufficient to invest in market opportunities as they arise.

    As of March 31, 2025, the weighted average interest rate on debt outstanding, including the effect of the interest rate swap agreements was 6.7%, up from 6.2% as of December 31, 2024, primarily driven by the impact of the repayment of the 3.500% Notes due 2025 and the issuance of the 6.340% Notes due 2030.

    The Company’s total debt to equity ratio was 1.00x and 1.11x as of each of March 31, 2025 and December 31, 2024, respectively. The Company’s net debt to equity ratio was 0.93x and 1.03x as of each of March 31, 2025 and December 31, 2024, respectively.

    Recent Developments

    Syndicated Facility

    On April 8, 2025, the Company entered into an amendment to its amended and restated senior secured credit facility (the “Syndicated Facility”), among other things, (1) generally reduce interest rate margins from 2.00% plus a SOFR adjustment (ranging between 0.11448% and 0.26161%) to 1.875% plus a SOFR adjustment of 0.10% on SOFR loans and from 1.00% to 0.875% plus a SOFR adjustment of 0.10% on alternate base rate loans, (2) remove the Consolidated Interest Coverage Ratio covenant, (3) decrease the facility size from $1.218 billion to $1.160 billion, (4) increase the “accordion” feature to allow expansion of the facility to $1.50 billion, and (5) extend the reinvestment period and final maturity date to April 8, 2029, and April 8, 2030, respectively.

    Non-GAAP Financial Measures

    On a supplemental basis, the Company is disclosing certain adjusted financial measures, each of which is calculated and presented on a basis of methodology other than in accordance with GAAP (“non-GAAP”). The Company’s management uses these non-GAAP financial measures internally to analyze and evaluate financial results and performance and believes that these non-GAAP financial measures are useful to investors as an additional tool to evaluate ongoing results and trends for the Company and to review the Company’s performance without giving effect to non-cash income/gain/loss resulting from the OCSI Merger and the OSI2 Merger and in the case of adjusted net investment income, without giving effect to capital gains incentive fees. The presentation of the below non-GAAP measures is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.

    • “Adjusted Total Investment Income” and “Adjusted Total Investment Income Per Share” – represents total investment income excluding any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 (see below) for the assets acquired in connection with the OCSI Merger and the OSI2 Merger.
    • “Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share” – represents net investment income, excluding (i) any amortization or accretion of interest income resulting solely from the cost basis established by ASC 805 (see below) for the assets acquired in connection with the OCSI Merger and the OSI2 Merger and (ii) capital gains incentive fees (“Part II incentive fees”).
    • “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes” and “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes Per Share” – represents net realized and unrealized gains (losses) net of taxes excluding any net realized and unrealized gains (losses) resulting solely from the cost basis established by ASC 805 (see below) for the assets acquired in connection with the OCSI Merger and the OSI2 Merger.
    • “Adjusted Earnings (Loss)” and “Adjusted Earnings (Loss) Per Share” – represents the sum of (i) Adjusted Net Investment Income and (ii) Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes and includes the impact of Part II incentive fees1, if any.

    The OCSI Merger and the OSI2 Merger (the “Mergers”) were accounted for as asset acquisitions in accordance with the asset acquisition method of accounting as detailed in ASC 805-50, Business Combinations—Related Issues (“ASC 805”). The consideration paid to each of the stockholders of OCSI and OSI2 were allocated to the individual assets acquired and liabilities assumed based on the relative fair values of the net identifiable assets acquired other than “non-qualifying” assets, which established a new cost basis for the acquired investments under ASC 805 that, in aggregate, was different than the historical cost basis of the acquired investments prior to the OCSI Merger or the OSI2 Merger, as applicable. Additionally, immediately following the completion of the Mergers, the acquired investments were marked to their respective fair values under ASC 820, Fair Value Measurements, which resulted in unrealized appreciation/depreciation. The new cost basis established by ASC 805 on debt investments acquired will accrete/amortize over the life of each respective debt investment through interest income, with a corresponding adjustment recorded to unrealized appreciation/depreciation on such investment acquired through its ultimate disposition. The new cost basis established by ASC 805 on equity investments acquired will not accrete/amortize over the life of such investments through interest income and, assuming no subsequent change to the fair value of the equity investments acquired and disposition of such equity investments at fair value, the Company will recognize a realized gain/loss with a corresponding reversal of the unrealized appreciation/depreciation on disposition of such equity investments acquired.

    The Company’s management uses the non-GAAP financial measures described above internally to analyze and evaluate financial results and performance and to compare its financial results with those of other business development companies that have not adjusted the cost basis of certain investments pursuant to ASC 805. The Company’s management believes “Adjusted Total Investment Income”, “Adjusted Total Investment Income Per Share”, “Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share” are useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to the income resulting from the new cost basis of the investments acquired in the Mergers because these amounts do not impact the fees payable to Oaktree Fund Advisors, LLC (the “Adviser”) under its investment advisory agreement (as amended and restated from time to time, the “A&R Advisory Agreement”), and specifically as its relates to “Adjusted Net Investment Income” and “Adjusted Net Investment Income Per Share”, without giving effect to Part II incentive fees. In addition, the Company’s management believes that “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes”, “Adjusted Net Realized and Unrealized Gains (Losses), Net of Taxes Per Share”, “Adjusted Earnings (Loss)” and “Adjusted Earnings (Loss) Per Share” are useful to investors as they exclude the non-cash income and gain/loss resulting from the Mergers and are used by management to evaluate the economic earnings of its investment portfolio. Moreover, these metrics more closely align the Company’s key financial measures with the calculation of incentive fees payable to the Adviser under with the A&R Advisory Agreement (i.e., excluding amounts resulting solely from the lower cost basis of the acquired investments established by ASC 805 that would have been to the benefit of the Adviser absent such exclusion).

    The following table provides a reconciliation of total investment income (the most comparable U.S. GAAP measure) to adjusted total investment income for the periods presented:

      For the three months ended
    		  
      March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    		  
    ($ in thousands, except per share data) Amount   Per Share   Amount   Per Share   Amount   Per Share
    		  
    GAAP total investment income $ 77,568     $ 0.90   $ 86,647   $ 1.05   $ 94,029   $ 1.18  
    Interest income amortization (accretion) related to merger
    accounting adjustments    		   (373 )     —     423     0.01     3,311     0.04  
    Adjusted total investment income $ 77,195     $ 0.90   $ 87,070   $ 1.06   $ 97,340   $ 1.22  
     

    The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to adjusted net investment income for the periods presented:

      For the three months ended
    		  
      March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    		  
    ($ in thousands, except per share data) Amount   Per Share   Amount   Per Share   Amount   Per Share
    		  
    GAAP net investment income $ 39,055     $ 0.45   $ 44,302   $ 0.54   $ 41,367   $ 0.52  
    Interest income amortization (accretion) related to merger
    accounting adjustments    		   (373 )     —     423     0.01     3,311     0.04  
    Part II incentive fee   —       —     —     —     —     —  
    Adjusted net investment income $ 38,682     $ 0.45   $ 44,725   $ 0.54   $ 44,678   $ 0.56  
     

    The following table provides a reconciliation of net realized and unrealized gains (losses), net of taxes (the most comparable U.S. GAAP measure) to adjusted net realized and unrealized gains (losses), net of taxes for the periods presented:

      For the three months ended
    		  
      March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    		  
    ($ in thousands, except per share data) Amount   Per Share   Amount   Per Share   Amount   Per Share
    		  
    GAAP net realized and unrealized gains (losses), net of taxes $ (75,304 )   $ (0.88 )   $ (37,063 )   $ (0.45 )   $ (32,030 )   $ (0.40 )  
    Net realized and unrealized gains (losses) related to merger
    accounting adjustments    		   56       —       (61 )     —       (3,314 )     (0.04 )  
    Adjusted net realized and unrealized gains (losses), net of taxes $ (75,248 )   $ (0.88 )   $ (37,124 )   $ (0.45 )   $ (35,344 )   $ (0.44 )  
     

    The following table provides a reconciliation of net increase (decrease) in net assets resulting from operations (the most comparable U.S. GAAP measure) to adjusted earnings (loss) for the periods presented:

      For the three months ended
    		  
      March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   March 31, 2024
    (unaudited)
    		  
    ($ in thousands, except per share data) Amount   Per Share   Amount   Per Share   Amount   Per Share
    		  
    Net increase (decrease) in net assets resulting from operations $ (36,249 )   $ (0.42 )   $ 7,239     $ 0.09   $ 9,337     $ 0.12    
    Interest income amortization (accretion) related to merger
    accounting adjustments    		   (373 )     —       423       0.01     3,311       0.04    
    Net realized and unrealized gains (losses) related to merger
    accounting adjustments    		   56       —       (61 )     —     (3,314 )     (0.04 )  
    Adjusted earnings (loss) $ (36,566 )   $ (0.43 )   $ 7,601     $ 0.09   $ 9,334     $ 0.12    
     

    Conference Call Information

    Oaktree Specialty Lending will host a conference call to discuss its second fiscal quarter 2025 results at 11:00 a.m. Eastern Time / 8:00 a.m. Pacific Time on May 1, 2025. The conference call may be accessed by dialing (877) 507-3275 (U.S. callers) or +1 (412) 317-5238 (non-U.S. callers). All callers will need to reference “Oaktree Specialty Lending” once connected with the operator. Alternatively, a live webcast of the conference call can be accessed through the Investors section of Oaktree Specialty Lending’s website, www.oaktreespecialtylending.com. During the conference call, the Company intends to refer to an investor presentation that will be available on the Investors section of its website.

    For those individuals unable to listen to the live broadcast of the conference call, a replay will be available on Oaktree Specialty Lending’s website, or by dialing (877) 344-7529 (U.S. callers) or +1 (412) 317-0088 (non-U.S. callers), access code 3296634, beginning approximately one hour after the broadcast.

    About Oaktree Specialty Lending Corporation

    Oaktree Specialty Lending Corporation (NASDAQ:OCSL) is a specialty finance company dedicated to providing customized one-stop credit solutions to companies with limited access to public or syndicated capital markets. The Company’s investment objective is to generate current income and capital appreciation by providing companies with flexible and innovative financing solutions including first and second lien loans, unsecured and mezzanine loans, and preferred equity. The Company is regulated as a business development company under the Investment Company Act of 1940, as amended, and is externally managed by Oaktree Fund Advisors, LLC, an affiliate of Oaktree Capital Management, L.P. For additional information, please visit Oaktree Specialty Lending’s website at www.oaktreespecialtylending.com.

    Forward-Looking Statements

    Some of the statements in this press release constitute forward-looking statements because they relate to future events, future performance or financial condition. The forward-looking statements may include statements as to: future operating results of the Company and distribution projections; business prospects of the Company and the prospects of its portfolio companies; and the impact of the investments that the Company expects to make. In addition, words such as “anticipate,” “believe,” “expect,” “seek,” “plan,” “should,” “estimate,” “project” and “intend” indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this press release involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) changes or potential disruptions in the Company’s operations, the economy, financial markets or political environment, including those caused by tariffs and trade disputes with other countries, inflation and an elevated interest rate environment; (ii) risks associated with possible disruption in the operations of the Company or the economy generally due to terrorism, war or other geopolitical conflict, natural disasters, pandemics or cybersecurity incidents; (iii) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (iv) conditions in the Company’s operating areas, particularly with respect to business development companies or regulated investment companies; and (v) other considerations that may be disclosed from time to time in the Company’s publicly disseminated documents and filings. The Company has based the forward-looking statements included in this press release on information available to it on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. The Company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that it may make directly to you or through reports that the Company in the future may file with the Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

    Contacts

    Investor Relations:
    Oaktree Specialty Lending Corporation
    Clark Koury
    (213) 830-6222
    ocsl-ir@oaktreecapital.com

    Media Relations:
    Financial Profiles, Inc.
    Moira Conlon
    (310) 478-2700
    mediainquiries@oaktreecapital.com

    Oaktree Specialty Lending Corporation
    Consolidated Statements of Assets and Liabilities
    (in thousands, except per share amounts)
     
      March 31, 2025
    (unaudited)    		   December 31, 2024
    (unaudited)    		   September 30, 2024
    		  
    ASSETS                        
    Investments at fair value:                        
    Control investments (cost March 31, 2025: $375,317; cost December 31, 2024: $374,509;
    cost September 30, 2024: $372,901)    		 $ 230,904     $ 267,782     $ 289,404    
    Affiliate investments (cost March 31, 2025: $35,295; cost December 31, 2024: $37,358;
    cost September 30, 2024: $38,175)    		   32,475       35,180       35,677    
    Non-control/Non-affiliate investments (cost March 31, 2025: $2,703,644; cost December 31,
    2024: $2,576,053; cost September 30, 2024: $2,733,843)    		   2,629,392       2,532,332       2,696,198    
    Total investments at fair value (cost March 31, 2025: $3,114,256; cost December 31,
    2024: $2,987,920; September 30, 2024: $3,144,919)    		   2,892,771       2,835,294       3,021,279    
    Cash and cash equivalents   97,838       112,913       63,966    
    Restricted cash   10,370       13,159       14,577    
    Interest, dividends and fees receivable   22,768       25,290       38,804    
    Due from portfolio companies   317       408       12,530    
    Receivables from unsettled transactions   18,526       55,661       17,548    
    Due from broker   25,190       21,880       17,060    
    Deferred financing costs   10,196       10,936       11,677    
    Deferred offering costs   161       162       125    
    Derivative assets at fair value   —       6,652       —    
    Other assets   1,030       1,437       775    
    Total assets $ 3,079,167     $ 3,083,792     $ 3,198,341    
                             
    LIABILITIES AND NET ASSETS                        
    Liabilities:                        
    Accounts payable, accrued expenses and other liabilities $ 3,451     $ 3,371     $ 3,492    
    Base management fee and incentive fee payable   7,332       8,930       15,517    
    Due to affiliate   1,277       1,508       4,088    
    Interest payable   14,087       17,600       16,231    
    Payables from unsettled transactions   110,202       —       15,666    
    Derivative liabilities at fair value   19,219       24,759       16,843    
    Deferred tax liability   —       14       —    
    Credit facilities payable   520,000       660,000       710,000    
    Unsecured notes payable (net of $7,573, $4,401 and $4,935 of unamortized financing costs
    as of March 31, 2025, December 31, 2024 and September 30, 2024, respectively)    		   928,486       917,795       928,693    
    Total liabilities   1,604,054       1,633,977       1,710,530    
    Commitments and contingencies                        
    Net assets:                        
    Common stock, $0.01 par value per share, 250,000 shares authorized; 88,086, 82,245 and
    82,245 shares issued and outstanding as of March 31, 2025, December 31, 2024 and
    September 30, 2024, respectively    		   881       822       822    
    Additional paid-in-capital   2,367,337       2,264,449       2,264,449    
    Accumulated overdistributed earnings   (893,105 )     (815,456 )     (777,460 )  
    Total net assets (equivalent to $16.75, $17.63 and $18.09 per common share as of March
    31, 2025, December 31, 2024 and September 30, 2024, respectively)    		   1,475,113       1,449,815       1,487,811    
    Total liabilities and net assets $ 3,079,167     $ 3,083,792     $ 3,198,341    
     
    Oaktree Specialty Lending Corporation
    Consolidated Statements of Operations
    (in thousands, except per share amounts)
     
      Three months ended
    March 31, 2025 (unaudited)    		   Three months ended
    December 31, 2024 (unaudited)    		   Three months ended
    March 31, 2024 (unaudited)    		   Six months ended
    March 31, 2025 (unaudited)    		   Six months ended
    March 31, 2024 (unaudited)
    		  
    Interest income:                                        
    Control investments $ 4,884     $ 5,226     $ 5,949     $ 10,110     $ 11,954    
    Affiliate investments   159       166       10       325       334    
    Non-control/Non-affiliate investments   63,915       71,809       77,803       135,724       160,524    
    Interest on cash and cash equivalents   1,565       1,221       1,494       2,786       3,858    
    Total interest income   70,523       78,422       85,256       148,945       176,670    
    PIK interest income:                                        
    Control investments   —       830       598       830       1,142    
    Affiliate investments   27       28       —       55       —    
    Non-control/Non-affiliate investments   4,504       4,870       4,218       9,374       7,523    
    Total PIK interest income   4,531       5,728       4,816       10,259       8,665    
    Fee income:                                        
    Control investments   —       —       13       —       26    
    Affiliate investments   —       —       —       —       5    
    Non-control/Non-affiliate investments   1,742       1,679       2,533       3,421       3,822    
    Total fee income   1,742       1,679       2,546       3,421       3,853    
    Dividend income:                                        
    Control investments   700       700       1,400       1,400       2,800    
    Non-control/Non-affiliate investments   72       118       11       190       26    
    Total dividend income   772       818       1,411       1,590       2,826    
    Total investment income   77,568       86,647       94,029       164,215       192,014    
    Expenses:                                        
    Base management fee   7,515       8,144       11,604       15,659       23,081    
    Part I incentive fee   6,733       7,913       8,452       14,646       17,480    
    Professional fees   1,227       1,067       1,213       2,294       2,717    
    Directors fees   160       160       160       320       320    
    Interest expense   28,191       30,562       31,881       58,753       64,051    
    Administrator expense   388       437       326       825       692    
    General and administrative expenses   937       926       526       1,863       1,117    
    Total expenses   45,151       49,209       54,162       94,360       109,458    
    Management fees waived   (183 )     (750 )     (1,500 )     (933 )     (3,000 )  
    Part I incentive fees waived   (6,733 )     (6,377 )     —       (13,110 )     —    
    Net expenses   38,235       42,082       52,662       80,317       106,458    
    Net investment income before taxes   39,333       44,565       41,367       83,898       85,556    
    (Provision) benefit for taxes on net investment
    income    		   (278 )     (263 )     —       (541 )     —    
    Net investment income   39,055       44,302       41,367       83,357       85,556    
    Unrealized appreciation (depreciation):                                        
    Control investments   (37,686 )     (23,230 )     (6,193 )     (60,916 )     (4,854 )  
    Affiliate investments   (642 )     320       93       (322 )     (832 )  
    Non-control/Non-affiliate investments   (28,975 )     (7,198 )     (21,396 )     (36,173 )     (39,011 )  
    Foreign currency forward contracts   (14,720 )     10,494       2,244       (4,226 )     (5,580 )  
    Net unrealized appreciation (depreciation)   (82,023 )     (19,614 )     (25,252 )     (101,637 )     (50,277 )  
    Realized gains (losses):                                        
    Control investments   13       —       —       13       786    
    Affiliate investments   333       (288 )     —       45       —    
    Non-control/Non-affiliate investments   (1,547 )     (17,056 )     (5,433 )     (18,603 )     (18,773 )  
    Foreign currency forward contracts   7,906       34       (1,170 )     7,940       2,931    
    Net realized gains (losses)   6,705       (17,310 )     (6,603 )     (10,605 )     (15,056 )  
    (Provision) benefit for taxes on realized
    and unrealized gains (losses)    		   14       (139 )     (175 )     (125 )     (351 )  
    Net realized and unrealized gains (losses), net
    of taxes    		   (75,304 )     (37,063 )     (32,030 )     (112,367 )     (65,684 )  
    Net increase (decrease) in net assets resulting
    from operations    		 $ (36,249 )   $ 7,239     $ 9,337     $ (29,010 )   $ 19,872    
    Net investment income per common share —
    basic and diluted    		 $ 0.45     $ 0.54     $ 0.52     $ 0.99     $ 1.09    
    Earnings (loss) per common share —
    basic and diluted    		 $ (0.42 )   $ 0.09     $ 0.12     $ (0.35 )   $ 0.25    
    Weighted average common shares outstanding —
    basic and diluted    		   85,916       82,245       79,763       84,061       78,797    
     

    1 Adjusted earnings (loss) includes accrued Part II incentive fees. As of and for the three months ended December 31, 2024, there was no accrued Part II incentive fee liability. Part II incentive fees are contractually calculated and paid at the end of the fiscal year in accordance with the A&R Advisory Agreement, which differs from Part II incentive fees accrued under GAAP. For the three months ended December 31, 2024, no amounts were payable under the A&R Advisory Agreement.

    The MIL Network –

  • MIL-OSI New Zealand: Speech to Tauranga Business Chamber: The Case For a Smaller, Focused Executive

    Source: ACT Party

    Speech to Tauranga Business Chamber: The Case For a Smaller, Focused Executive

    Intro

    The term of Government is nearing half time, when we should be reviewing the first half and planning the second.

    I believe the Government can point to significant progress, and this is reflected in us maintaining a lead in the polls despite tough economic times.

    Inflation and interest rates have been beaten back. Government doesn’t control every factor influencing them, but we can control our own spending. The Government’s commitment to spend less, and maintaining that discipline over four years has helped win the war on inflation and interest rates. This week’s announcement that we will come in $1.1 billion under the allowance this year is a very positive development.

    The priority in crime has switched from criminals to victims. There is nothing wrong with rehabilitating criminals to reduce crime, and save money on imprisonment. There is a big problem, however, with seeing the gangs as partners, a lower prison muster as a goal in itself, and spending more on pre-sentencing reports for convicted criminals than victim support.

    Across the board we have made innocent people the priority and criminals the target. Gangs are no longer partners to the Government, Three Strikes is back, and the expansion of prisoner rights will be reversed, to name just a few. As a result, violent crime is falling and we’re not finished yet.

    In healthcare the prescription is very simple and very complex all at once. What we need to do is stabilise years of restructuring and chaos so that New Zealanders get value for money. The health budget is up 67 per cent, from $18 billion in 2019 to $30 billion six years later. The complex part is unblocking the myriad issues that make the system so frustratingly unproductive.

    Finally the Government has taken many steps to restore our country’s commitment to liberal democracy. The liberal part means all people are equal, regardless of their immutable characteristics. The democratic part means each person gets an equal say on the wielding of political power, or one person, one vote. These are uneasy conversations, but essential ones. We have problems to solve and they’re easier solved together as a people united by our common humanity than divided by identity politics.

    Half time talk

    Any good half time team talk, though, should be warts and all. Have we done well? I claim we have. Is it time to declare victory? Far too early? Could we do better? Absolutely, and here’s one way we might do better in the future.

    I often hear the change is too slow. People look at Donald Trump, Elon Musk, Javier Milei and ask, why don’t you just change things faster like them?

    Part of the reason that we are not a dictatorship, with all the power in one office. That’s a good thing. Power in New Zealand rests in many institutions. There are boards, like the board of Pharmac. There are councils, such as in universities. There are individuals’ statutory positions, such as the privacy commissioner. All of these are there thanks to parliamentary laws, which take time to change. Unless you’re Che Guevara, you probably want a stable, thoughtful political system that consults people affected by its changes and governs by consent.

    On the other hand, it’s time to start planning play even better in the future. Today I’d like to float an idea about how we could transform government management and get better results for the people who pay for it.

    The suggestion I’m making changes the way we think about government. At the moment it’s supposed to be something that can solve all your problems – although the track record is not good.

    Like any business, it needs to be an organisation focused on running itself well first. It is something that a determined manager would do as the first order of business, getting the right people in the right seats on the bus before setting off on the journey, so to speak.

    It’s also about tackling head on the lingering feeling in New Zealand of paralysis by analysis, that NOTHING GETS DONE, because there’s too much hui and not enough dui. Everyone is always consulting someone to make sure nobody’s feelings would be hurt if, hypothetically, anybody ever actually did anything.

    Our current set up of government, that has evolved over the past 25 years, seems to be an example of our national paralysis.

    The idea I’m about to share may seem a little like shuffling deckchairs, but it’s more like pass the parcel, because it involves seriously reducing the number of seats. It goes like this.

    Untangling Spaghetti

    Here’s a simple question. Each government minister has specific areas of responsibility assigned to them called portfolios. How many ministerial portfolios do you think New Zealand has today? 40? 60?

    Well, don’t feel too bad if you’re well off the mark. The truth is, most people wouldn’t know. And frankly, most wouldn’t believe it if I told them.

    We currently have 82 ministerial portfolios. Yes, you heard that right. Eighty-two.

    Those 82 portfolios are held by 28 ministers. And under them, we have 41 separate government departments. That’s a big, complicated bureaucratic beast. It’s hungry for taxpayer money and it’s paid for by you.

    Let’s put this in perspective.

    Ireland, with roughly five million people, has a constitutional maximum of 15 Ministers managing 18 portfolios.

    And yet, somehow, the Irish have managed to keep the lights on, run hospitals, fund schools, maintain roads, and defend their borders without 82 portfolios, 28 ministers, or 41 government departments.

    In fact, they’ve done much better than us on most measures this century. That’s not in spite of having simpler government, I suspect it’s because they have it.

    If we look further abroad, the comparison is even more stark.

    South Korea, with a population of 52 million, has 18 Ministers. The United Kingdom, with 67 million people, has around 22. The United States, with over 330 million citizens, runs a Cabinet of about 25.

    By comparison, New Zealand’s executive looks bloated.

    Now I recognise these countries have different political systems. But that doesn’t mean we should accept inefficiency as inevitable. It certainly doesn’t mean we should celebrate it.

    Something has to change. That means fewer portfolios, fewer ministers, and fewer departments. Sure, that might put me and a few of my colleagues out of a job. But if that’s the price of having a government that delivers core services efficiently and gives taxpayers real value for money, then it’s worth it.

    It wasn’t always this way.

    New Zealand once had a lean cabinet. Sixteen ministers all sat at the same table. Each responsible for one or two departments. You were the Minister of Police. That was your job. Everyone knew who was accountable.

    Then came the 1990s and the dawn of MMP.

    Suddenly, governments needed to bring in coalition partners. The idea of ministers outside cabinet was invented. These were people with the title but not the seat at the table. Four of those ministers were created initially. That brought the total number to 20.

    A few years later, Helen Clark came along and took things further. Her government had 20 cabinet ministers and eight Ministers outside cabinet. 28 in total. And it’s stayed around that number ever since.

    With such a large executive, coordinating work programmes and communicating between ministers inside and outside cabinet is difficult, and as a result governments run the risk of drifting.

    Some departments now report to a dozen ministers or more.

    Officials at MBIE report to 19 different ministers. When you have 19 ministers responsible for one department, the department itself becomes the most powerful player in the room. Bureaucrats face ministers with competing priorities, unclear mandates, and often little subject matter expertise. The result? Nothing happens. Or worse, everything happens, badly. There’s a wonderful line in a report by the New Zealand Initiative: “Confusion empowers the bureaucracy.”

    The size of the executive might have stabilised, but the number of portfolios has exploded.

    It used to be roughly a one-to-one equation between a minister and a department. Now ministers hold three or four portfolios each.

    There are portfolios without a specific department, including Racing, Hospitality, Auckland, the South Island, Hunting and Fishing, the Voluntary Sector, and Space, just to name a few of the 82 portfolios that now exist. We have to ask ourselves, do we need a Government Minister overseeing each of these areas?

    I’m not saying those aren’t important communities. What I am saying is that creating a portfolio or a department named after the community is completely different from running a real department to deliver a service. It’s not a substitute for good policy. It’s not proof of delivery.

    It is an easy political gesture though. The cynics among us would say it’s symbolism. Governments want to show they care about an issue, so they create a portfolio to match. A Minister gets a title, and voters are told in the most obvious way possible that it is a priority.

    Take the Child Poverty Reduction portfolio under the Ardern Government. It came after Jacinda Ardern made child poverty her raison d’être. Creating the portfolio was a way to show she meant business. But five years later, has the creation of the portfolio improved the rate of child poverty? Were children better off because of a new Minister for Child Poverty Reduction?

    We all know the answer. Child poverty rates plateaued and New Zealand is still grappling with the same problems. At the time, only ACT had the courage to say this and to vote against the Child Poverty Reduction Act, because we knew it was window dressing.

    I’m proud to be part of a government that believes the path out of poverty isn’t paved by political slogans but better school attendance and achievement, making it easier to develop resources and build homes, getting more investment into New Zealand, and ending open-ended welfare in favour of mutual obligation.

    Deep down I think we all know that the only true path out of poverty is building the individual’s capacity to provide for themselves and their family. There are no examples of anyone escaping poverty though dependence on their fellow citizens.

    I know that if I start talking about specific ministries, people will start talking about the examples and the politics of who survives and who is cancelled and so on. Let me just say that I’ve been through the current list and I believe we could easily get to 30 departments.

    Now, some people might be thinking, hang on, didn’t you just create the Ministry for Regulation? Yes, I did. And here’s why it matters.

    Because government doesn’t just spend and tax. It also regulates. It restricts what people can do with their property. It dictates what can be built, where, how, and by whom. In fact, everything government does is either tax your money or put rules on the property it hasn’t taxed yet. That’s it. Try to think of something government does that isn’t either a) taxing and spending your money or b) making rules about what you can do with your remaining property.

    And yet, until now, there was no central department looking at the cumulative effect of regulation. No one asking whether the rules were achieving their goals or just stacking up and strangling productivity in red tape.

    The Ministry for Regulation is one of just five central agencies in government. It was created not to grow bureaucracy, but to hold the bureaucracy accountable.

    We don’t need more Ministers, we need fewer. But we also need smarter government. And that means focusing on what matters

    Portfolios shouldn’t be handed out like participation trophies. There’s no benefit to having ministers juggling three or four unrelated jobs and doing none of them well.

    Take Nanaia Mahuta. She was Minister for Foreign Affairs and Local Government. Two large, complex areas. It’s not uncommon for a Minister to fail at one of their major portfolios when performing this juggling act. She managed to be equally bad at both.

    Ministers should have a remit over a single, clearly defined, policy area. Stretching ministers across multiple, disparate areas of complex policy empowers the bureaucracy because there will always be a knowledge gap where ministers are overly dependent on the bureaucrats. This situation empowers the Wellington bureaucracy.

    That’s how they get away with spending your taxes with little accountability. Take Labour’s health restructure as an example. There’s no doubt our health system needed change, it clearly still does, and this government is working hard to address this. However, the change it needed was never to create more enormous, tax-absorbing bureaucracies with little explanation of how they would change things for you. That’s what Labour delivered.

    There was never any evidence that the creation of the Māori Health Authority and Health NZ was going to have any positive impact. Labour politicians simply knew that health was a big issue and Māori health in particular has appalling statistics.

    Progress would be figuring out the underlying causes and addressing them with evidence-based policy, like this Government has done with its changes to bowel screening ages. However, it was easier to publicise a glitzy administrative reform that cost billions. It’s decisions like this that mean our next budget is going to be so tight, and getting a doctor’s appointment is still just as difficult as it was before the change.

    They burnt billions of dollars shuffling deck chairs, restructuring, and creating the divisive and ineffective Māori Health Authority. We even got to the point where a call to Healthline, New Zealand’s primary telehealth service, began by asking patients’ ethnicity. A voice would say, “If you are Māori and would like to speak to a Māori clinician, please press 1. Alternatively, please stay on the line with Healthline who will triage your call.”

    I’m pleased our government is now prioritising workforce training, development, and retention. It doesn’t grab as many headlines, but it’s more likely to provide another GP down the road, train another mental health nurse, or deliver a midwife to rural New Zealand. We’re unwinding the divisive race-based categorising that was so prevalent. The goal must be to treat people first, as human beings, and to not make assumptions of people based on their background.

    You could say that the health reforms were just bad policy by Wellington’s prospective Mayor Andrew Little, who despite that disaster is somehow an improvement on the current Wellington Mayor.

    But I’d say that the size of the bureaucracy was as much the culprit for the health reforms. They write the memos. They draft the advice. When a minister isn’t providing leadership, they decide the pace and direction of reform, if reform happens at all. When no one is clearly responsible, the only people left standing are the officials. Because if you want to know why it’s so hard to shrink government, why red tape keeps piling up, and why reform feels impossible it’s because no one is really in charge and the bureaucracy is too big to pull itself into line.

    That’s not how a democratic system should function.

    Now, for the first time, ACT is at the centre of government.

    We didn’t set the table, but we’re sitting at it. If we could set it, there would be a lot fewer placemats.

    Here’s how we’d do it:

    • Only 20 Ministers, with no ministers outside cabinet
    • No associate ministers, except in finance
    • Abolish ‘portfolios’, there’s either a department or there’s not
    • Reduce the number of departments to 30 by merging them and removing low-value functions
    • Ensure each department is overseen by only one minister
    • Up to eight under-secretaries supporting the busiest ministers, effectively a training ground for future cabinet ministers

    Some simple rules to improve the way government works.

    This wouldn’t just act as a structural reform, but as a philosophical one.

    It’s a shift away from the idea that the government exists to solve every problem by creating a minister named after it. And towards a view that the government’s job is to manage your money responsibly and provide core public services that allow you to go about your life, respecting your property rights

    That’s it. That’s enough.

    I think we could easily cut the number of portfolios in half, while reducing the number of ministers by eight. Bringing cabinet back to a scale that is manageable, focused, and accountable.

    New Zealanders deserve better than bloated bureaucracy and meaningless titles. They deserve a government that respects them enough to be efficient.

    New Zealanders don’t need 82 portfolios to live better lives. They just need a government that does its job, and then gets out of their way.

    I’m looking forward to the second half, and floating more ideas like this as we plan for a better tomorrow.

    Thank you.

    MIL OSI New Zealand News –

  • MIL-OSI: Finward Bancorp Announces Earnings for the Quarter Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    MUNSTER, Ind., April 30, 2025 (GLOBE NEWSWIRE) — Finward Bancorp (Nasdaq: FNWD) (the “Bancorp”), the holding company for Peoples Bank (the “Bank”), today announced that net income available to common stockholders was $456 thousand, or $0.11 per diluted share, for the quarter ended March 31, 2025, as compared to $2.1 million, or $0.49 per diluted share for the quarter ended December 31, 2024, and as compared to $9.3 million or $2.17 per diluted share for the quarter ended March 31, 2024. Selected performance metrics are as follows for the periods presented:

    Finward Bancorp
    Quarterly Financial Report
                               
    Performance Ratios   Quarter ended,
    (unaudited)          March 31,   December 31,   September 30,   June 30,   March 31,
              2025   2024   2024   2024   2024
    Return on equity   1.17 %   5.39 %   1.60 %   0.39 %   24.97 %
    Return on assets   0.09 %   0.41 %   0.12 %   0.03 %   1.77 %
    Tax adjusted net interest margin (Non-GAAP) 2.95 %   2.79 %   2.66 %   2.67 %   2.57 %
    Noninterest income / average assets   0.43 %   0.72 %   0.55 %   0.50 %   2.57 %
    Noninterest expense / average assets   2.81 %   2.75 %   2.80 %   2.79 %   2.86 %
    Efficiency ratio     93.11 %   87.20 %   97.32 %   98.56 %   59.41 %
                                     

    “Margin continued to expand in the first quarter as deposits repriced lower, continuing the trend we have seen over the past year. With economic uncertainty potentially increasing, we are maintaining our focus on capital and credit quality. Non-performing loans improved in the first quarter, and our Provision for Credit Loss was driven by model-related factors that reflect the broader trends we see in the economy. Seasonal and timing factors impacted operating expense and non-interest income, and we see opportunity in both areas as the year moves forward,” said Benjamin Bochnowski, CEO. “Our team remains focused on continued improvement in operating results, and on serving our customers and communities.”  

    Highlights of the current period include:

    • Net Interest Margin – The net interest margin for the quarter ended March 31, 2025, was 2.81%, compared to 2.65% for the quarter ended December 31, 2024. The tax-adjusted net interest margin (a non-GAAP measure) for the quarter ended March 31, 2025, was 2.95%, compared to 2.79% for the quarter ended December 31, 2024. The increased net interest margin for the three months ended March 31, 2025 compared to December 31, 2024 is primarily the result of reduced deposit and borrowing costs as a result of the Federal Reserve’s reduction of federal funds rates during the last four months of 2024. See Table 1 at the end of this press release for a reconciliation of the tax-adjusted net interest margin to the GAAP net interest margin.
    • Funding – As of March 31 2025, deposits totaled $1.8 billion, a decrease of $10.2 million, or 0.6% compared to December 31, 2024, which also totaled $1.8 billion. As of March 31, 2025, non-interest-bearing deposits totaled $281.5 million, an increase of $18.1 million or 6.9%, compared to December 31, 2024. Core deposits totaled $1.2 billion at both March 31, 2025 and December 31, 2024. Core deposits include checking, savings, and money market accounts and represented 68.9% of the Bancorp’s total deposits at March 31, 2025. As of March 31, 2025, balances for certificates of deposit totaled $544.8 million, compared to $560.3 million on December 31, 2024, a decrease of $15.5 million or 2.8%. The decline in total portfolio deposits is primarily related to cyclical flows and continued adjustments to deposit pricing. The increase in non-interest-bearing deposits is primarily attributable to inflows of business-related checking deposits after year-end. In addition, as of March 31, 2025, borrowings and repurchase agreements totaled $101.7 million, a decrease of $3.4 million or 3.2%, compared to December 31, 2024. The decrease in short-term borrowings was the result of cyclical inflows and outflows of interest-earning assets and interest-bearing liabilities.

      As of March 31, 2025, 72% of our deposits are fully FDIC insured, and another 9% are further backed by the Indiana Public Deposit Insurance Fund. The Bancorp’s liquidity position remains strong with solid core deposit customer relationships, excess cash, debt securities, contractual loan repayments, and access to diversified borrowing sources. As of March 31, 2025, the Bancorp had available liquidity of $697 million including borrowing capacity from the FHLB and Federal Reserve facilities.

    • Securities Portfolio – Securities available for sale balances decreased by $3.5 million to $330.1 million as of March 31, 2025, compared to $333.6 million as of December 31, 2024. The decrease in securities available for sale was primarily due to continued portfolio runoff. Accumulated other comprehensive loss (“AOCL”) was $58.2 million as of March 31, 2025, compared to $58.1 million on December 31, 2024, a decline of $160.4 thousand, or 0.3%. The yield on the securities portfolio increased to 2.38% for the three months ended March 31, 2025 from 2.34% for the three months ended December 31, 2024. Management did not execute any securities sale transactions during the quarter.
    • Lending – The Bank’s aggregate loan portfolio totaled $1.5 billion on both March 31, 2025 and December 31, 2024. During the three months ended March 31, 2025, the Bank originated $36.7 million in new commercial loans, compared to $25.0 million during the three months ended December 31, 2024. The loan portfolio represents 79.1% of earning assets and is comprised of 62.6% commercial-related credits. At March 31, 2025, the Bancorp’s portfolio loan balances in commercial real estate owner occupied properties totaled $236.9 million or 15.7% of total loan balances and commercial real estate non-owner-occupied properties totaled $302.8 million or 20.1% of total loan balances. Of the $302.8 million in commercial real estate non-owner-occupied properties balances, loans collateralized by office buildings represented $40.4 million or 2.7% of total loan balances.
    • Asset Quality – At March 31, 2025, non-performing loans totaled $12.5 million, compared to $13.7 million at December 31, 2024, a decrease of $1.3 million or 9.1%. The Bank’s ratio of non-performing loans to total loans was 0.84% at March 31, 2025, compared to 0.91% at December 31, 2024. The Bank’s ratio of non-performing assets to total assets was 0.69% at March 31, 2025, compared to 0.74% at December 31, 2024. Management maintains a vigilant oversight of nonperforming loans through proactive relationship management.

      The allowance for credit losses (ACL) on loans totaled $17.9 million at March 31, 2025, or 1.20% of total loans receivable, compared to $16.9 million at December 31, 2024, or 1.12% of total loans receivable, an increase of $1 million or 6.2%. The Bank’s unused commitment reserve, included in other liabilities, totaled $2.1 million at March 31, 2025, compared to $2.7 million at December 31, 2024, a decrease of $622 thousand or 22.7%. 

      For the quarter ended March 31, 2025, the Bank recorded a net provision for credit loss expense totaling $454 thousand based on historical loss rate updates, migration of loan and unfunded commitment segment balances, and other factors within the Bank’s ACL modeling. The first quarter’s provision expense consisted of a $1.1 million provision for credit losses on loans, and a $623 thousand reversal of provision for credit losses on unused commitments. The decrease in the Bank’s unused commitment reserve was primarily due to lower loss rates. For the quarter ended March 31, 2025, net charge-offs, totaled $32.7 thousand, compared to $2.2 million for the quarter ended December 31, 2024, a decrease of $2.1 million, or a decline of 97.2%. The ACL as a percentage of non-performing loans, or coverage ratio, was 143.8% at March 31, 2025 compared to 123.1% at December 31, 2024.  

    • Operating Expenses – Non-interest expense as a percentage of average assets was 2.81% for the quarter ended March 31, 2025, as compared to 2.75% for the quarter ended December 31, 2024. The increase in non-interest expenses quarter over quarter was primarily attributable to increased compensation and benefit expenses offset by reduced data processing and marketing expenses. The Bank remains focused on identifying additional operating efficiencies and third-party expense reductions. Compensation and benefits expense is up 3.7% for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, primarily due to annual merit-based salary increases during the quarter ended March 31, 2025.
    • Capital Adequacy – As of March 31, 2025, the Bank’s tier 1 capital to adjusted average assets ratio was 8.48%, an improvement of 0.01% compared to 8.47% at December 31, 2024. The Bank’s capital continues to exceed all applicable regulatory capital requirements as set forth in 12 C.F.R. § 324. The Bancorp’s tangible book value per share was $29.55 at March 31, 2025, up from $29.48 as of December 31, 2024 (a non-GAAP measure). Tangible common equity to total assets was 6.26% at March 31, 2025, up from 6.17% as of December 31, 2024 (a non-GAAP measure). Excluding accumulated other comprehensive losses, tangible book value per share increased to $43.02 as of March 31, 2025, from $42.94 as of December 31, 2024 (a non-GAAP measure). See Table 1 at the end of this press release for a reconciliation of the tangible book value per share, tangible book value per share adjusted for other accumulated comprehensive losses, tangible common equity as a percentage of total assets, and tangible common equity as a percentage of total assets adjusted for accumulated other comprehensive losses to the related GAAP ratios.

    Disclosures Regarding Non-GAAP Financial Measures
    Reported amounts are presented in accordance with GAAP. In this press release, the Bancorp also provides certain financial measures identified as non-GAAP. The Bancorp’s management believes that the non-GAAP information, which consists of tangible common equity, tangible common equity adjusted for accumulated other comprehensive losses, tangible book value per share, tangible book value per share adjusted for accumulated other comprehensive losses, tangible common equity/total assets, tax-adjusted net interest margin, and efficiency ratio, which can vary from period to period, provides a better comparison of period to period operating performance. The adjusted net interest income and tax-adjusted net interest margin measures recognize the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes. Additionally, the Bancorp believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. Refer to Table 1 – Reconciliation of Non-GAAP Financial Measures at the end of this document for a reconciliation of the non-GAAP measures identified herein and their most comparable GAAP measures.

    About Finward Bancorp
    Finward Bancorp is a locally managed and independent financial holding company headquartered in Munster, Indiana, whose activities are primarily limited to holding the stock of Peoples Bank. Peoples Bank provides a wide range of personal, business, electronic and wealth management financial services from its 26 locations in Lake and Porter Counties in Northwest Indiana and Chicagoland. Finward Bancorp’s common stock is quoted on The NASDAQ Stock Market, LLC under the symbol FNWD. The website ibankpeoples.com provides information on Peoples Bank’s products and services, and Finward Bancorp’s investor relations.

    Forward Looking Statements
    This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of the Bancorp. For these statements, the Bancorp claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this communication should be considered in conjunction with the other information available about the Bancorp, including the information in the filings the Bancorp makes with the SEC. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. Forward-looking statements are typically identified by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: changes in domestic and international trade policies, including tariffs and other non-tariff barriers, and the effects of such changes on the Bank and its customers; the Bank’s ability to demonstrate compliance with the terms of the previously disclosed consent order and memorandum of understanding entered into between the Bank and the Federal Deposit Insurance Corporation (“FDIC”) and Indiana Department of Financial Institutions (“DFI”), or to demonstrate compliance to the satisfaction of the FDIC and/or DFI within prescribed time frames; the Bank’s agreement under the memorandum of understanding to refrain from paying cash dividends without prior regulatory approval; changes in asset quality and credit risk; the inability to sustain revenue and earnings growth; changes in interest rates, market liquidity, and capital markets, as well as the magnitude of such changes, which may reduce net interest margins; the aggregate effects of inflation experienced in recent years; further deterioration in the market value of securities held in the Bancorp’s investment securities portfolio, whether as a result of macroeconomic factors or otherwise; customer acceptance of the Bancorp’s products and services; customer borrowing, repayment, investment, and deposit practices; customer disintermediation; the introduction, withdrawal, success, and timing of business initiatives; competitive conditions; the inability to realize cost savings or revenues or to implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; economic conditions; and the impact, extent, and timing of technological changes, capital management activities, regulatory actions by the Federal Deposit Insurance Corporation and Indiana Department of Financial Institutions, and other actions of the Federal Reserve Board and legislative and regulatory actions and reforms. Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Bancorp’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s Internet website (www.sec.gov). All subsequent written and oral forward-looking statements concerning matters attributable to the Bancorp or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. Except as required by law, The Bancorp does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statement is made.

    In addition to the above factors, we also caution that the actual amounts and timing of any future common stock dividends or share repurchases will be subject to various factors, including our capital position, financial performance, capital impacts of strategic initiatives, market conditions, and regulatory and accounting considerations, as well as any other factors that our Board of Directors deems relevant in making such a determination. Therefore, there can be no assurance that we will repurchase shares or pay any dividends to holders of our common stock, or as to the amount of any such repurchases or dividends.

    FOR FURTHER INFORMATION
    CONTACT SHAREHOLDER SERVICES
    (219) 853-7575

     
    Finward Bancorp
    Quarterly Financial Report
                                 
    Performance Ratios Quarter ended,
    (unaudited) March 31,   December 31,   September 30,   June 30,   March 31,
      2025   2024   2024   2024   2024
    Return on equity  1.17%     5.39%     1.60%     0.39%     24.97%  
    Return on assets  0.09%     0.41%     0.12%     0.03%     1.77%  
    Yield on loans  5.25%     5.27%     5.22%     5.11%     5.02%  
    Yield on security investments  2.38%     2.34%     2.37%     2.43%     2.37%  
    Total yield on earning assets  4.71%     4.74%     4.70%     4.64%     4.52%  
    Cost of interest-bearing deposits 2.17%     2.41%     2.47%     2.37%     2.36%  
    Cost of repurchase agreements 3.35%     3.65%     4.04%     3.86%     3.88%  
    Cost of borrowed funds 4.12%     4.31%     4.56%     4.95%     4.62%  
    Total cost of interest-bearing liabilities 2.28%     2.53%     2.63%     2.55%     2.53%  
    Tax adjusted net interest margin1 2.95%     2.79%     2.66%     2.67%     2.57%  
    Noninterest income / average assets 0.43%     0.72%     0.55%     0.50%     2.57%  
    Noninterest expense / average assets 2.81%     2.75%     2.80%     2.79%     2.86%  
    Efficiency ratio 93.11%     87.20%     97.32%     98.56%     59.41%  
                                 
    Non-performing assets to total assets  0.69%     0.74%     0.73%     0.61%     0.64%  
    Non-performing loans to total loans 0.84%     0.91%     0.92%     0.75%     0.78%  
    Allowance for credit losses to non-performing loans 143.84%     123.10%     134.12%     161.17%     159.12%  
    Allowance for credit losses to loans receivable 1.20%     1.12%     1.23%     1.22%     1.25%  
                                 
    Basic earnings per share $0.11     $0.49     $0.14     $0.03     $2.18  
    Diluted earnings per share  $0.11     $0.49     $0.14     $0.03     $2.17  
    Stockholders’ equity / total assets 7.44%     7.35%     7.69%     7.16%     7.32%  
    Book value per share  $35.10     $35.10     $36.99     $34.45     $35.17  
    Closing stock price $29.10     $28.11     $31.98     $24.52     $24.60  
    Price to earnings per share ratio 68.08     14.25     56.21     182.60     2.82  
    Dividends declared per common share $0.12     $0.12     $0.12     $0.12     $0.12  
                                 
                                 
    Non-GAAP Performance Ratios Quarter ended,
    (unaudited) March 31,    December 31,    September 30,    June 30,    March 31, 
      2025    2024    2024    2024    2024 
    Net interest margin – tax equivalent  2.95%     2.79%     2.66%     2.67%     2.57%  
    Tangible book value per diluted share $29.55     $29.48     $31.28     $28.67     $29.30  
    Tangible book value per diluted share adjusted for AOCL $43.02     $42.94     $42.47     $42.33     $42.36  
    Tangible common equity to total assets 6.26%     6.17%     6.51%     5.95%     6.09%  
    Tangible common equity to total assets adjusted for AOCL 9.12%     8.99%     8.83%     8.79%     8.81%  
                                 
    (1) Tax adjusted net interest margin represents a non-GAAP financial measure. See the non-GAAP reconciliation table section captioned “Non-GAAP Financial Measures” for further disclosure regarding non-GAAP financial measures
                             
    Quarter Ended                        
    (Dollars in thousands) Average Balances, Interest, and Rates  
    (unaudited) March 31, 2025   December 31, 2024  
      Average Balance   Interest   Rate (%)   Average Balance   Interest   Rate (%)  
    ASSETS                        
    Interest bearing deposits in other financial institutions $ 53,553     $ 540   4.03   $ 50,271     $ 650   5.17  
    Federal funds sold   1,375       12   3.49     891       9   4.04  
    Securities available-for-sale   336,060       1,998   2.38     343,411       2,011   2.34  
    Loans receivable   1,498,312       19,655   5.25     1,504,233       19,802   5.27  
    Federal Home Loan Bank stock   6,547       136   8.31     6,547       123   7.51  
    Total interest earning assets   1,895,847     $ 22,341   4.71     1,905,353     $ 22,595   4.74  
    Cash and non-interest bearing deposits in other financial institutions   27,919               27,360            
    Allowance for credit losses   (16,946 )             (18,110 )          
    Other noninterest bearing assets   153,148               154,707            
    Total assets $ 2,059,968             $ 2,069,310            
                             
    LIABILITIES AND STOCKHOLDERS’ EQUITY                        
    Interest-bearing deposits $ 1,481,377     $ 8,044   2.17   $ 1,465,198     $ 8,811   2.41  
    Repurchase agreements   41,631       349   3.35     43,372       396   3.65  
    Borrowed funds   61,613       635   4.12     72,536       781   4.31  
    Total interest bearing liabilities   1,584,621     $ 9,028   2.28     1,581,106     $ 9,988   2.53  
    Non-interest bearing deposits   279,013               289,467            
    Other noninterest bearing liabilities   40,923               42,944            
    Total liabilities   1,904,557               1,913,517            
    Total stockholders’ equity   155,411               155,793            
    Total liabilities and stockholders’ equity $ 2,059,968             $ 2,069,310            
                             
    Net interest income     $ 13,313           $ 12,607      
    Return on average assets   0.09 %             0.41 %          
    Return on average equity   1.17 %             5.39 %          
    Net interest margin (average earning assets)   2.81 %             2.65 %          
    Net interest margin (average earning assets) – tax equivalent   2.95 %             2.79 %          
    Net interest spread   2.43 %             2.21 %          
    Ratio of interest-earning assets to interest-bearing liabilities 1.20x           1.21x          
                             
    Finward Bancorp
    Quarterly Financial Report
                                 
    Balance Sheet Data                            
    (Dollars in thousands)                            
    (unaudited) March 31,    December 31,    September 30,    June 30,    March 31, 
      2025    2024    2024    2024    2024 
    ASSETS                            
                                 
    Cash and non-interest bearing deposits in other financial institutions $         18,563     $         17,883     $         23,071     $         19,061     $         16,418  
    Interest bearing deposits in other financial institutions 52,829     52,047     48,025     63,439     54,755  
    Federal funds sold 975     654     553     707     607  
                                 
    Total cash and cash equivalents 72,367     70,584     71,649     83,207     71,780  
                                 
    Securities available-for-sale 330,127     333,554     350,027     339,585     346,233  
    Loans held-for-sale 2,849     1,253     2,567     1,185     667  
    Loans receivable, net of deferred fees and costs 1,491,696     1,508,976     1,508,242     1,506,398     1,508,251  
    Less: allowance for credit losses (17,955 )   (16,911 )   (18,516 )   (18,330 )   (18,805 )
    Net loans receivable 1,473,741     1,492,065     1,489,726     1,488,068     1,489,446  
    Federal Home Loan Bank stock 6,547     6,547     6,547     6,547     6,547  
    Accrued interest receivable 7,821     7,721     7,442     7,695     7,583  
    Premises and equipment 46,680     47,259     47,912     48,696     47,795  
    Foreclosed real estate –     –     –     –     71  
    Cash value of bank owned life insurance 33,712     33,514     33,312     33,107     32,895  
    Goodwill 22,395     22,395     22,395     22,395     22,395  
    Other intangible assets 1,635     1,860     2,203     2,555     2,911  
    Other assets 41,840     43,947     40,882     44,027     43,459  
                                 
    Total assets $    2,039,714     $    2,060,699     $    2,074,662     $    2,077,067     $    2,071,782  
                                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY                            
                                 
    Deposits:                            
    Non-interest bearing $       281,461     $       263,324     $       285,157     $       286,784     $       296,959  
    Interest bearing 1,468,923     1,497,242     1,463,653     1,469,970     1,450,519  
    Total 1,750,384     1,760,566     1,748,810     1,756,754     1,747,478  
    Repurchase agreements 45,053     40,116     43,038     42,973     41,137  
    Borrowed funds 56,657     65,000     85,000     85,000     90,000  
    Accrued expenses and other liabilities 35,813     43,603     38,259     43,709     41,586  
                                 
    Total liabilities 1,887,907     1,909,285     1,915,107     1,928,436     1,920,201  
                                 
    Commitments and contingencies                            
                                 
    Stockholders’ Equity:                            
                                 
    Preferred stock, no par or stated value;
        10,000,000 shares authorized, none outstanding    		 –     –     –     –     –  
    Common stock, no par or stated value; 10,000,000 shares authorized; 
       shares issued and outstanding:  March 31, 2025 – 4,324,485
                                    December 31, 2024 – 4,313,698    		 –     –     –     –     –  
                                                                     
    Additional paid-in capital 70,132     70,034     69,916     69,778     69,727  
    Accumulated other comprehensive loss (58,244 )   (58,084 )   (48,241 )   (58,939 )   (56,313 )
    Retained earnings 139,919     139,464     137,880     137,792     138,167  
                                 
    Total stockholders’ equity 151,807     151,414     159,555     148,631     151,581  
                                 
    Total liabilities and stockholders’ equity $    2,039,714     $    2,060,699     $    2,074,662     $    2,077,067     $    2,071,782  
                                 
    Finward Bancorp
    Quarterly Financial Report
                                 
    Consolidated Statements of Income                                
    (Dollars in thousands) Quarter Ended,
    (unaudited) March 31,   December 31,   September 30,   June 30,   March 31,
      2025   2024   2024   2024   2024
    Interest income:                            
      Loans $ 19,655     $ 19,802     $ 19,660     $ 19,174     $ 18,879  
      Securities & short-term investments 2,686     2,793     2,812     2,953     3,105  
      Total interest income 22,341     22,595     22,472     22,127     21,984  
    Interest expense:                            
      Deposits 8,045     8,812     8,946     8,610     8,794  
      Borrowings 983     1,176     1,520     1,463     1,410  
      Total interest expense 9,028     9,988     10,466     10,073     10,204  
    Net interest income 13,313     12,607     12,006     12,054     11,780  
    Provision for credit losses 454     (579 )   –     76     –  
    Net interest income after provision for credit losses 12,859     13,186     12,006     11,978     11,780  
    Noninterest income:                            
      Fees and service charges 1,109     1,439     1,463     1,257     1,153  
      Wealth management operations 619     728     731     763     633  
      Gain on tax credit investment 67     1,236     –     –     –  
      Gain on sale of loans held-for-sale, net 230     328     338     320     152  
      Increase in cash value of bank owned life insurance 198     202     205     212     193  
      Gain (loss) on sale of real estate –     (212 )   –     15     11,858  
      Loss on sale of securities, net –     –     –     –     (531 )
      Other 6     11     130     6     17  
      Total noninterest income 2,229     3,732     2,867     2,573     13,475  
    Noninterest expense:                            
      Compensation and benefits 7,372     6,628     6,963     7,037     7,109  
      Occupancy and equipment 2,111     2,045     2,181     2,116     1,908  
      Data processing 1,039     1,202     1,165     1,135     1,170  
      Federal deposit insurance premiums 433     457     435     397     501  
      Marketing 86     220     209     212     158  
      Professional and outside services 1,260     1,341     1,251     1,257     1,557  
      Technology 454     509     602     507     625  
      Other 1,716     1,845     1,668     1,756     1,976  
      Total noninterest expense 14,471     14,247     14,474     14,417     15,004  
    Income before income taxes 617     2,671     399     134     10,251  
    Income tax expenses (benefit) 161     569     (207 )   (9 )   972  
    Net income $ 456     $ 2,102     $ 606     $ 143     $ 9,279  
                                 
    Earnings per common share:                            
      Basic $ 0.11     $ 0.49     $ 0.14     $ 0.03     $ 2.18  
      Diluted $ 0.11     $ 0.49     $ 0.14     $ 0.03     $ 2.17  
                                 
                       
    Finward Bancorp
    Quarterly Financial Report
                       
    Asset Quality                  
    (Dollars in thousands)                  
    (unaudited) March 31,   December 31,   September 30,   June 30,   March 31,
      2025   2024   2024   2024   2024
    Nonaccruing loans $ 12,483     $ 13,738     $ 13,806     $ 11,079     $ 11,603  
    Accruing loans delinquent more than 90 days –     –     –     294     215  
    Securities in non-accrual 1,630     1,419     1,440     1,371     1,442  
    Foreclosed real estate –     –     –     –     71  
    Total nonperforming assets $ 14,113     $ 15,157     $ 15,246     $ 12,744     $ 13,331  
                       
    Allowance for credit losses (ACL):                  
    ACL specific allowances for collateral dependent loans $ 259     $ 284     $ 1,821     $ 1,327     $ 1,455  
    ACL general allowances for loan portfolio 17,696     16,627     16,695     17,003     17,351  
    Total ACL $ 17,955     $ 16,911     $ 18,516     $ 18,330     $ 18,806  
                       
    (Dollars in thousands)                       Minimum Required To Be
    (unaudited)             Minimum Required For   Well Capitalized Under Prompt
        Actual   Capital Adequacy Purposes   Corrective Action Regulations
    March 31, 2025   Amount Ratio   Amount Ratio   Amount Ratio
    Common equity tier 1 capital to risk-weighted assets   $178,036   11.02%     $72,679   4.50%     $104,981   6.50%  
    Tier 1 capital to risk-weighted assets   $178,036   11.02%     $96,906   6.00%     $129,207   8.00%  
    Total capital to risk-weighted assets   $198,107   12.27%     $129,207   8.00%     $161,509   10.00%  
    Tier 1 capital to adjusted average assets   $178,036   8.48%     $84,019   4.00%     $105,023   5.00%  
    Table 1 – Reconciliation of the Non-GAAP Performance Measures         
                       
    (Dollars in thousands) Quarter Ended,
    (unaudited) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Calculation of tangible common equity         
    Total stockholder’s equity $ 151,807     $ 151,414     $ 159,555     $ 148,631     $ 151,581  
    Goodwill (22,395 )   (22,395 )   (22,395 )   (22,395 )   (22,395 )
    Other intangibles (1,635 )   (1,860 )   (2,203 )   (2,555 )   (2,911 )
    Tangible common equity $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275  
                       
    Calculation of tangible common equity adjusted for accumulated other comprehensive loss         
    Tangible common equity $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275  
    Accumulated other comprehensive loss 58,244     58,084     48,241     58,939     56,313  
    Tangible common equity adjusted for accumulated other comprehensive loss $ 186,021     $ 185,243     $ 183,198     $ 182,620     $ 182,588  
                       
    Calculation of tangible book value per share         
    Tangible common equity $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275  
    Shares outstanding 4,324,485     4,313,698     4,313,940     4,313,940     4,310,251  
    Tangible book value per diluted share $ 29.55     $ 29.48     $ 31.28     $ 28.67     $ 29.30  
                       
    Calculation of tangible book value per diluted share adjusted for accumulated other comprehensive loss         
    Tangible common equity adjusted for accumulated other comprehensive loss $ 186,021     $ 185,243     $ 183,198     $ 182,620     $ 182,588  
    Shares outstanding 4,324,485     4,313,698     4,313,940     4,313,940     4,310,251  
    Tangible book value per diluted share adjusted for accumulated other comprehensive loss $ 43.02     $ 42.94     $ 42.47     $ 42.33     $ 42.36  
                       
    Calculation of tangible common equity to total assets         
    Tangible common equity $ 127,777     $ 127,159     $ 134,957     $ 123,681     $ 126,275  
    Total assets 2,039,714     2,060,699     2,074,662     2,077,067     2,071,782  
    Tangible common equity to total assets 6.26%   6.17%   6.51%   5.95%   6.09%
                       
    Calculation of tangible common equity to total assets adjusted for accumulated other comprehensive loss         
    Tangible common equity adjusted for accumulated other comprehensive loss $ 186,021     $ 185,243     $ 183,198     $ 182,620     $ 182,588  
    Total assets 2,039,714     2,060,699     2,074,662     2,077,067     2,071,782  
    Tangible common equity to total assets adjusted for accumulated other comprehensive loss 9.12%   8.99%   8.83%   8.79%   8.81%
                       
    Calculation of tax adjusted net interest margin         
    Net interest income $ 13,313     $ 12,607     $ 12,006     $ 12,054     $ 11,780  
    Tax adjusted interest on securities and loans 670     674     678     677     699  
    Adjusted net interest income $ 13,983     13,281     12,684     12,731     $ 12,479  
    Total average earning assets 1,895,847     1,905,353     1,910,731     1,906,998     1,945,501  
    Tax adjusted net interest margin 2.95%   2.79%   2.66%   2.67%   2.57%
                       
    Efficiency ratio                  
    Total non-interest expense $ 14,471     $ 14,247     $ 14,474     $ 14,417     $ 15,004  
    Total revenue 15,542     16,339     14,873     14,627     25,255  
    Efficiency ratio 93.11%   87.20%   97.32%   98.56%   59.41%

    The MIL Network –

  • MIL-OSI: The First of Long Island Corporation Reports Earnings for the First Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    MELVILLE, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — The First of Long Island Corporation (Nasdaq: FLIC, the “Company” or the “Corporation”), the parent of The First National Bank of Long Island (the “Bank”), reported earnings for the three months ended March 31, 2025.

    Analysis of Earnings – First Quarter 2025 Versus Linked Quarter

    Net income for the first quarter of 2025 increased $512,000 compared to the fourth quarter of 2024. The increase in net income was primarily due to a $795,000 increase in net interest income largely due to an eight basis point improvement in the net interest margin, and a decrease in noninterest expense of $1.5 million primarily due to branch consolidation expenses of $1.4 million and vesting of equity awards during the fourth quarter of 2024 offset by pending merger related system conversion expenses of $468,000 and debit card chargeoffs of $243,000 during the first quarter of 2025. These were partially offset by a provision for credit losses of $168,000 as compared to a provision reversal for credit losses of $381,000 in the fourth quarter, a decrease in noninterest income of $503,000 primarily due to $233,000 of back-to-back swap fees and $225,000 of bank-owned life insurance (“BOLI”) benefit payments earned in the fourth quarter, and an increase in income tax expense of $761,000 substantially due to a decrease in the percentage of pre-tax income derived from the Bank’s real estate investment trust, increasing the state and local income tax due. 

    Analysis of Earnings – First Quarter 2025 Versus First Quarter of 2024

    Net income and earnings per share (“EPS”) for the quarter ended March 31, 2025 were $3.8 million and $0.17, respectively, as compared to $4.4 million and $0.20, respectively, for the comparable quarter in 2024. The principal drivers of the change in net income were an increase in net interest income of $661,000, or 3.6%, which was more than offset by an increase in the provision for credit losses of $168,000, an increase in noninterest expense of $922,000, and an increase in income tax expense of $193,000. The quarter produced a return on average assets (“ROA”) of 0.37%, return on average equity (“ROE”) of 3.98%, and a net interest margin of 1.91%.

    Net interest income increased when comparing the first quarters of 2025 and 2024 primarily due to a decrease in interest expense of $2.0 million which was partially offset by a $1.4 million decrease in interest income. The decrease in interest expense was a combination of a 16 basis points decrease in the cost of interest-bearing liabilities and a decrease in average interest-bearing liabilities of $92.9 million. The decrease in interest income resulted from interest-earning assets decreasing by $156.6 million offset by the yield on interest-earning assets increasing two basis points.

    In the first quarter of 2025, the Bank recorded a provision for credit losses of $168,000. The Bank did not record a provision in the first quarter of 2024. The allowance for credit losses remained relatively flat when compared to year-end 2024 largely due to declines in historical loss rates and loan balances which were offset by an increase due to deterioration in current and forecasted economic conditions, including adjustments for economic uncertainty. The reserve coverage ratio ticked up one basis point to 0.89% of total loans at March 31, 2025 as compared to 0.88% at December 31, 2024. Past due loans and nonaccrual loans were at $7.5 million and $3.5 million, respectively, on March 31, 2025. Overall, the credit quality of the loan and investment portfolios remains strong.

    Noninterest income decreased $57,000, or 2.1%, when comparing the first quarters of 2025 and 2024 mainly due to 2024 nonrecurring items of $114,000 in real estate tax refunds, $60,000 in BOLI benefit payments, $50,000 in joint marketing fees and an additional one-time service charge cycle related to the Bank’s core system conversion, which were partially offset by increases of $96,000 in merchant card service fees and $72,000 in BOLI accretion.

    Noninterest expense increased $922,000, or 5.7%, for the first quarter of 2025, as compared to the first quarter of 2024. The change in noninterest expense is mainly attributable to the current year’s expenses related to the pending merger. Noninterest expense increased due to merger expenses of $230,000, merger related system conversion expenses of $468,000, debit card chargeoffs of $243,000 and higher legal fees, partially offset by a 2.6% year-over-year decrease in salaries and employee benefits.  The decrease in salaries and employee benefits was due to a decrease in full time equivalent employees, primarily the result of branch closings in 2024.

    Income tax expense increased $193,000 due to an increase in the effective tax rate from 6.2% in the first quarter of 2024 to 11.5% in the current quarter. The increase in the effective tax rate is mainly due to the same reasons discussed above with respect to the linked quarter changes. 

    Liquidity

    Total average deposits declined by $51.9 million when comparing the first quarters of 2025 and 2024. There were no overnight advances on March 31, 2025 or December 31, 2024. On March 31, 2025, other borrowings were down by $75.0 million from year-end 2024. At March 31, 2025, the Bank had $653.3 million in collateralized borrowing lines with the Federal Home Loan Bank of New York and the Federal Reserve Bank, a $20.0 million unsecured line of credit with a correspondent bank and $204.8 million in unencumbered securities. In total, $878.1 million in liquidity was available on March 31, 2025. Uninsured deposits were 49.5% of total deposits at March 31, 2025. 

    Capital

    The Corporation’s capital position remains strong with a leverage ratio of approximately 10.29% on March 31, 2025. Book value per share was $16.91 on March 31, 2025, versus $16.77 on December 31, 2024. The Company declared its quarterly cash dividend of $0.21 per share during the quarter. There were no share repurchases during the quarter.

    Forward Looking Information

    This earnings release contains various “forward-looking statements” within the meaning of that term as set forth in Rule 175 of the Securities Act of 1933 and Rule 3b-6 of the Securities Exchange Act of 1934. Such statements are generally contained in sentences including the words “may” or “expect” or “could” or “should” or “would” or “believe” or “anticipate”. The Corporation cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic conditions; legislative and regulatory changes; changes in domestic or international governmental policies, including the imposition of tariffs; monetary and fiscal policies of the federal government; changes in interest rates; deposit flows and the cost of funds; demand for loan products; competition; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; and other factors discussed in the “risk factors” section of the Corporation’s filings with the Securities and Exchange Commission (“SEC”). The forward-looking statements are made as of the date of this press release, and the Corporation assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

    For more detailed financial information please see the Corporation’s quarterly report on Form 10-Q for the quarter ended March 31, 2025. The Form 10-Q will be available through the Bank’s website at www.fnbli.com on or about May 1, 2025, when it is anticipated to be electronically filed with the SEC. Our SEC filings are also available on the SEC’s website at www.sec.gov.

               
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
               
      3/31/2025     12/31/2024  
      (dollars in thousands)  
    Assets:              
    Cash and cash equivalents $ 67,555     $ 38,330  
    Investment securities available-for-sale, at fair value   615,350       624,779  
                   
    Loans:              
    Commercial and industrial   134,095       136,732  
    Secured by real estate:              
    Commercial mortgages   1,929,881       1,963,107  
    Residential mortgages   1,065,380       1,084,090  
    Home equity lines   33,452       36,468  
    Consumer and other   1,126       1,210  
        3,163,934       3,221,607  
    Allowance for credit losses   (28,308 )     (28,331 )
        3,135,626       3,193,276  
                   
    Restricted stock, at cost   24,329       27,712  
    Bank premises and equipment, net   28,411       29,135  
    Right-of-use asset – operating leases   18,358       18,951  
    Bank-owned life insurance   117,471       117,075  
    Pension plan assets, net   11,693       11,806  
    Deferred income tax benefit   35,022       36,192  
    Other assets   22,491       22,080  
      $ 4,076,306     $ 4,119,336  
    Liabilities:              
    Deposits:              
    Checking $ 1,072,766     $ 1,074,671  
    Savings, NOW and money market   1,587,030       1,574,160  
    Time   635,789       616,027  
        3,295,585       3,264,858  
                   
    Overnight advances   —       —  
    Other borrowings   360,000       435,000  
    Operating lease liability   20,348       21,964  
    Accrued expenses and other liabilities   17,533       18,648  
        3,693,466       3,740,470  
    Stockholders’ Equity:              
    Common stock, par value $0.10 per share:              
    Authorized, 80,000,000 shares;              
    Issued and outstanding, 22,635,724 and 22,595,349 shares   2,264       2,260  
    Surplus   79,866       79,731  
    Retained earnings   353,043       354,051  
        435,173       436,042  
    Accumulated other comprehensive loss, net of tax   (52,333 )     (57,176 )
        382,840       378,866  
      $ 4,076,306     $ 4,119,336  
                   
                   
         
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
         
      Three Months Ended  
      3/31/2025     3/31/2024  
      (dollars in thousands)  
    Interest and dividend income:              
    Loans $ 33,785     $ 33,543  
    Investment securities:              
    Taxable   5,374       6,993  
    Nontaxable   956       960  
        40,115       41,496  
    Interest expense:              
    Savings, NOW and money market deposits   10,318       10,083  
    Time deposits   6,403       6,977  
    Overnight advances   71       263  
    Other borrowings   4,501       6,012  
        21,293       23,335  
    Net interest income   18,822       18,161  
    Provision for credit losses   168       —  
    Net interest income after provision for credit losses   18,654       18,161  
                   
    Noninterest income:              
    Bank-owned life insurance   912       840  
    Service charges on deposit accounts   829       880  
    Net loss on sales of securities   —       —  
    Other   976       1,054  
        2,717       2,774  
    Noninterest expense:              
    Salaries and employee benefits   9,711       9,974  
    Occupancy and equipment   3,233       3,214  
    Merger expenses   230       —  
    Other   3,954       3,018  
        17,128       16,206  
    Income before income taxes   4,243       4,729  
    Income tax expense   487       294  
    Net income $ 3,756     $ 4,435  
                   
    Share and Per Share Data:              
    Weighted Average Common Shares   22,625,117       22,520,568  
    Dilutive restricted stock units   86,270       73,827  
    Dilutive weighted average common shares   22,711,387       22,594,395  
                   
    Basic EPS $ 0.17     $ 0.20  
    Diluted EPS   0.17       0.20  
    Cash Dividends Declared per share   0.21       0.21  
                   
    FINANCIAL RATIOS  
    (Unaudited)  
    ROA   0.37 %     0.42 %
    ROE   3.98       4.72  
    Net Interest Margin   1.91       1.79  
                   
                   
               
    PROBLEM AND POTENTIAL PROBLEM LOANS AND ASSETS
    (Unaudited)
               
      3/31/2025     12/31/2024  
      (dollars in thousands)  
    Loans including modifications to borrowers experiencing financial difficulty:              
    Modified and performing according to their modified terms $ 419     $ 421  
    Past due 30 through 89 days   7,452       270  
    Past due 90 days or more and still accruing   —       —  
    Nonaccrual   3,510       3,229  
        11,381       3,920  
    Other real estate owned   —       —  
      $ 11,381     $ 3,920  
                   
    Allowance for credit losses $ 28,308     $ 28,331  
    Allowance for credit losses as a percentage of total loans   0.89 %     0.88 %
    Allowance for credit losses as a multiple of nonaccrual loans   8.1 x     8.8 x
                   
                   
         
    AVERAGE BALANCE SHEET, INTEREST RATES AND INTEREST DIFFERENTIAL
    (Unaudited)
         
      Three Months Ended March 31,  
      2025     2024  
      Average     Interest/   Average     Average     Interest/   Average  
    (dollars in thousands) Balance     Dividends   Rate     Balance     Dividends   Rate  
    Assets:                                      
    Interest-earning bank balances $ 28,537     $ 313   4.45 %   $ 55,117     $ 751   5.48 %
    Investment securities:                                      
    Taxable (1)   568,162       5,061   3.56       638,857       6,242   3.91  
    Nontaxable (1) (2)   151,745       1,210   3.19       153,417       1,215   3.17  
    Loans (1)   3,185,771       33,785   4.24       3,243,445       33,543   4.14  
    Total interest-earning assets   3,934,215       40,369   4.10       4,090,836       41,751   4.08  
    Allowance for credit losses   (28,399 )                 (28,947 )            
    Net interest-earning assets   3,905,816                   4,061,889              
    Cash and due from banks   28,197                   31,703              
    Premises and equipment, net   28,912                   31,257              
    Other assets   130,528                   120,884              
      $ 4,093,453                 $ 4,245,733              
    Liabilities and Stockholders’ Equity:                                      
    Savings, NOW & money market deposits $ 1,572,109       10,318   2.66     $ 1,534,081       10,083   2.64  
    Time deposits   612,730       6,403   4.24       643,854       6,977   4.36  
    Total interest-bearing deposits   2,184,839       16,721   3.10       2,177,935       17,060   3.15  
    Overnight advances   6,322       71   4.55       18,846       263   5.61  
    Other borrowings   416,944       4,501   4.38       504,258       6,012   4.80  
    Total interest-bearing liabilities   2,608,105       21,293   3.31       2,701,039       23,335   3.47  
    Checking deposits   1,067,804                   1,126,593              
    Other liabilities   35,260                   40,014              
        3,711,169                   3,867,646              
    Stockholders’ equity   382,284                   378,087              
      $ 4,093,453                 $ 4,245,733              
                                           
    Net interest income (2)         $ 19,076                 $ 18,416      
    Net interest spread (2)               0.79 %                 0.61 %
    Net interest margin (2)               1.91 %                 1.79 %
    (1) The average balances of loans include nonaccrual loans. The average balances of investment securities exclude unrealized gains and losses on available-for-sale securities.
    (2) Tax-equivalent basis. Interest income on a tax-equivalent basis includes the additional amount of interest income that would have been earned if the Corporation’s investment in tax-exempt investment securities had been made in investment securities subject to federal income taxes yielding the same after-tax income. The tax-equivalent amount of $1.00 of nontaxable income was $1.27 for each period presented using the statutory federal income tax rate of 21%.
       

    For More Information Contact:
    Janet Verneuille, SEVP and CFO
    (516) 671-4900, Ext. 7462

    The MIL Network –

  • MIL-OSI: Ansys Announces Q1 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    / Q1 2025 Results

    • Revenue of $504.9 million
    • GAAP diluted earnings per share of $0.59 and non-GAAP diluted earnings per share of $1.64
    • GAAP operating profit margin of 11.7% and non-GAAP operating profit margin of 33.5%
    • Operating cash flows of $398.9 million and unlevered operating cash flows of $407.1 million
    • Annual contract value (ACV) of $410.1 million
    • Deferred revenue and backlog of $1,627.7 million on March 31, 2025

    PITTSBURGH, April 30, 2025 (GLOBE NEWSWIRE) — ANSYS, Inc. (NASDAQ: ANSS) today reported first quarter 2025 revenue of $504.9 million, an increase of 8% in reported currency, or 10% in constant currency, when compared to the first quarter of 2024. For the first quarter of 2025, the Company reported diluted earnings per share of $0.59 and $1.64 on a GAAP and non-GAAP basis, respectively, compared to $0.40 and $1.39 on a GAAP and non-GAAP basis, respectively, for the first quarter of 2024. Additionally, the Company reported first quarter ACV growth of 1% in reported currency, or 2% in constant currency, when compared to the first quarter of 2024. The results for the first quarter met the Company’s expectations and it continues to expect double-digit FY 2025 ACV growth.

    As previously announced, on January 15, 2024, Ansys entered into a definitive agreement with Synopsys, Inc. (“Synopsys”) under which Synopsys will acquire Ansys. Since the Company’s last earnings release, the U.K. Competition and Markets Authority has formally cleared the transaction in Phase 1 subject to previously announced divestitures. Additionally, Ansys and Synopsys have received clearances from the Turkey Competition Authority, Japan Fair Trade Commission, Korea Fair Trade Commission and Taiwan Fair Trade Commission. We continue to work with the regulators in other relevant jurisdictions to conclude their reviews. The transaction is anticipated to close in the first half of 2025, subject to the receipt of required regulatory approvals and other customary closing conditions. As previously announced, in light of the pending transaction with Synopsys, Ansys has suspended quarterly earnings conference calls and no longer provides quarterly or annual guidance.

    The non-GAAP financial results highlighted represent non-GAAP financial measures. Reconciliations of these measures to the comparable GAAP measures can be found later in this release.

    / Summary of Financial Results

    Ansys’ first quarter 2025 and 2024 financial results are presented below. The 2025 and 2024 non-GAAP results exclude the income statement effects of stock-based compensation, excess payroll taxes related to stock-based compensation, amortization of acquired intangible assets, expenses related to business combinations and adjustments for the income tax effect of the excluded items.

    Our results are as follows:

      GAAP
    (in thousands, except per share data and percentages) Q1 2025   Q1 2024   % Change
    Revenue $   504,891     $   466,605     8.2 %
    Net income $     51,865     $     34,778     49.1 %
    Diluted earnings per share $        0.59        $        0.40        47.5 %
    Gross margin   85.6 %     85.3 %    
    Operating profit margin   11.7 %     9.3 %    
    Effective tax rate   19.6 %     15.1 %    
                       
      Non-GAAP
    (in thousands, except per share data and percentages) Q1 2025   Q1 2024   % Change
    Net income $   144,149     $   121,996     18.2 %
    Diluted earnings per share $        1.64        $        1.39        18.0 %
    Gross margin   91.2 %     90.9 %    
    Operating profit margin   33.5 %     32.2 %    
    Effective tax rate   17.5 %     17.5 %    
                       
      Other Metrics
    (in thousands, except percentages) Q1 2025   Q1 2024   % Change
    ACV $   410,068   $   407,405   0.7 %
    Operating cash flows $   398,935   $   282,817   41.1 %
    Unlevered operating cash flows $   407,128   $   292,667   39.1 %
                     
    Supplemental Financial Information

    / Annual Contract Value

    (in thousands, except percentages) Q1 2025   Q1 2025 in
    Constant Currency    		   Q1 2024   % Change   % Change in
    Constant Currency
    ACV $        410,068   $         416,640   $        407,405   0.7 %   2.3 %
                                 

    Recurring ACV includes both subscription lease ACV and all maintenance ACV (including maintenance from perpetual licenses). It excludes perpetual license ACV and service ACV.

     

    / Revenue

    (in thousands, except percentages) Q1 2025   Q1 2025 in
    Constant Currency    		   Q1 2024   % Change   % Change in
    Constant Currency
    Revenue $        504,891   $         512,570   $        466,605   8.2 %   9.9 %
                                 
    REVENUE BY LICENSE TYPE
                           
    (in thousands, except percentages) Q1 2025   % of Total   Q1 2024   % of Total   % Change   % Change in
    Constant Currency
    Subscription Lease $          96,919   19.2 %   $          94,800   20.3 %   2.2 %   4.0 %
    Perpetual              63,036   12.5 %                65,521   14.0 %   (3.8)%   (2.9)%
    Maintenance1            324,392   64.2 %              289,340   62.0 %   12.1 %   13.9 %
    Service              20,544   4.1 %                16,944   3.6 %   21.2 %   22.5 %
    Total $        504,891       $        466,605       8.2 %   9.9 %
                           

    1Maintenance revenue is inclusive of both maintenance associated with perpetual licenses and the maintenance component of subscription leases.

    REVENUE BY GEOGRAPHY
                           
    (in thousands, except percentages) Q1 2025   % of Total   Q1 2024   % of Total   % Change   % Change in
    Constant Currency
    Americas $        230,377   45.6 %   $        208,697   44.7 %   10.4 %   10.5 %
                           
    Germany              35,021   6.9 %                36,198   7.8 %   (3.3)%   (0.4)%
    Other EMEA              83,839   16.6 %                82,417   17.7 %   1.7 %   3.9 %
    EMEA            118,860   23.5 %              118,615   25.4 %   0.2 %   2.6 %
                           
    Japan              43,297   8.6 %                36,532   7.8 %   18.5 %   20.9 %
    Other Asia-Pacific            112,357   22.3 %              102,761   22.0 %   9.3 %   12.9 %
    Asia-Pacific            155,654   30.8 %              139,293   29.9 %   11.7 %   15.0 %
                           
    Total $        504,891       $        466,605       8.2 %   9.9 %
                                   
    REVENUE BY CHANNEL
           
      Q1 2025   Q1 2024
    Direct revenue, as a percentage of total revenue 69.1 %   66.5 %
    Indirect revenue, as a percentage of total revenue 30.9 %   33.5 %
               

    / Deferred Revenue and Backlog

    (in thousands) March 31,
    2025    		   December 31,
         2024    		   March 31,
    2024
    Current Deferred Revenue $            490,318   $            504,527   $            433,167
    Current Backlog                511,197                  524,617                  433,106
    Total Current Deferred Revenue and Backlog            1,001,515               1,029,144                  866,273
               
    Long-Term Deferred Revenue                  30,840                    31,778                    21,434
    Long-Term Backlog                595,388                  657,345                  481,746
    Total Long-Term Deferred Revenue and Backlog                626,228                  689,123                  503,180
               
    Total Deferred Revenue and Backlog $        1,627,743   $        1,718,267   $        1,369,453
                     

    / Currency

    The first quarter of 2025 revenue, operating income and ACV, as compared to the first quarter of 2024, were impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. The currency fluctuation impacts on revenue, GAAP and non-GAAP operating income and ACV based on 2024 exchange rates are reflected in the tables below. Deferred revenue and backlog as of March 31, 2025, as compared to the balances at December 31, 2024, were also impacted by fluctuations in the exchange rates of foreign currencies against the U.S. Dollar. Amounts in brackets indicate an adverse impact from currency fluctuations.

    (in thousands) Q1 2025
    Revenue $          (7,679 )
    GAAP operating income $          (2,848 )
    Non-GAAP operating income $          (3,044 )
    ACV $          (6,572 )
    Deferred revenue and backlog $         19,166  
           

    The most meaningful currency impacts are typically attributable to U.S. Dollar exchange rate changes against the Euro and Japanese Yen. Historical exchange rates are reflected in the charts below.

      Period-End Exchange Rates
    As of EUR/USD   USD/JPY
    March 31, 2025                    1.08                       150
    December 31, 2024                    1.04                       157
    March 31, 2024                    1.08                       151
           
      Average Exchange Rates
    Three Months Ended EUR/USD   USD/JPY
    March 31, 2025                    1.05                       152
    March 31, 2024                    1.09                       148
           

    / GAAP Financial Statements

    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Balance Sheets
    (Unaudited)
    (in thousands) March 31, 2025   December 31, 2024
    ASSETS:      
    Cash & short-term investments $                      1,828,559   $                      1,497,517
    Accounts receivable, net                              754,655                             1,022,850
    Goodwill                          3,799,809                             3,778,128
    Other intangibles, net                              694,235                                716,244
    Other assets                              903,755                             1,036,692
    Total assets $                      7,981,013   $                      8,051,431
    LIABILITIES & STOCKHOLDERS’ EQUITY:      
    Current deferred revenue $                          490,318   $                          504,527
    Long-term debt                              754,287                                754,208
    Other liabilities                              556,933                                706,256
    Stockholders’ equity                          6,179,475                             6,086,440
    Total liabilities & stockholders’ equity $                      7,981,013   $                      8,051,431
               
    ANSYS, INC. AND SUBSIDIARIES
    Condensed Consolidated Statements of Income
    (Unaudited)
        Three Months Ended
    (in thousands, except per share data)   March 31,
    2025    		   March 31,
    2024
    Revenue:        
    Software licenses   $              159,955     $              160,321  
    Maintenance and service                     344,936                       306,284  
    Total revenue                     504,891                       466,605  
    Cost of sales:        
    Software licenses                         9,370                         10,044  
    Amortization                       23,429                         22,484  
    Maintenance and service                       39,770                         36,139  
    Total cost of sales                       72,569                         68,667  
    Gross profit                     432,322                       397,938  
    Operating expenses:        
    Selling, general and administrative                     230,415                       219,643  
    Research and development                     137,292                       128,811  
    Amortization                         5,722                           6,145  
    Total operating expenses                     373,429                       354,599  
    Operating income                       58,893                         43,339  
    Interest income                       16,743                         10,995  
    Interest expense                     (10,177 )                     (12,369 )
    Other expense, net                           (930 )                       (1,007 )
    Income before income tax provision                       64,529                         40,958  
    Income tax provision                       12,664                           6,180  
    Net income   $                51,865     $                34,778  
    Earnings per share – basic:        
    Earnings per share   $                     0.59     $                     0.40  
    Weighted average shares                       87,653                         87,067  
    Earnings per share – diluted:        
    Earnings per share   $                     0.59     $                     0.40  
    Weighted average shares                       88,127                         87,780  
                     

    / Glossary of Terms

    Annual Contract Value (ACV): ACV is a key performance metric and is useful to investors in assessing the strength and trajectory of our business. ACV is a supplemental metric to help evaluate the annual performance of the business. Over the life of the contract, ACV equals the total value realized from a customer. ACV is not impacted by the timing of license revenue recognition. ACV is used by management in financial and operational decision-making and in setting sales targets used for compensation. ACV is not a replacement for, and should be viewed independently of, GAAP revenue and deferred revenue as ACV is a performance metric and is not intended to be combined with any of these items. There is no GAAP measure comparable to ACV. ACV is composed of the following:

    • the annualized value of maintenance and subscription lease contracts with start dates or anniversary dates during the period, plus
    • the value of perpetual license contracts with start dates during the period, plus
    • the annualized value of fixed-term services contracts with start dates or anniversary dates during the period, plus
    • the value of work performed during the period on fixed-deliverable services contracts.

    When we refer to the anniversary dates in the definition of ACV above, we are referencing the date of the beginning of the next twelve-month period in a contractually committed multi-year contract. If a contract is three years in duration, with a start date of July 1, 2025, the anniversary dates would be July 1, 2026 and July 1, 2027. We label these anniversary dates as they are contractually committed. While this contract would be up for renewal on July 1, 2028, our ACV performance metric does not assume any contract renewals.

    Example 1: For purposes of calculating ACV, a $100,000 subscription lease contract or a $100,000 maintenance contract with a term of July 1, 2025 – June 30, 2026 would each contribute $100,000 to ACV for fiscal year 2025 with no contribution to ACV for fiscal year 2026.

    Example 2: For purposes of calculating ACV, a $300,000 subscription lease contract or a $300,000 maintenance contract with a term of July 1, 2025 – June 30, 2028 would each contribute $100,000 to ACV in each of fiscal years 2025, 2026 and 2027. There would be no contribution to ACV for fiscal year 2028 as each period captures the full annual value upon the anniversary date.

    Example 3: A perpetual license valued at $200,000 with a contract start date of March 1, 2025 would contribute $200,000 to ACV in fiscal year 2025.

    Backlog: Deferred revenue associated with installment billings for periods beyond the current quarterly billing cycle and committed contracts with start dates beyond the end of the current period.

    Deferred Revenue: Billings made or payments received in advance of revenue recognition.

    Subscription Lease or Time-Based License: A license of a stated product of our software that is granted to a customer for use over a specified time period, which can be months or years in length. In addition to the use of the software, the customer is provided with access to maintenance (unspecified version upgrades and technical support) without additional charge. The revenue related to these contracts is recognized ratably over the contract period for the maintenance portion and up front for the license portion.

    Perpetual / Paid-Up License: A license of a stated product and version of our software that is granted to a customer for use in perpetuity. The revenue related to this type of license is recognized up front.

    Maintenance: A contract, typically one year in duration, that is purchased by the owner of a perpetual license and that provides access to unspecified version upgrades and technical support during the duration of the contract. The revenue from these contracts is recognized ratably over the contract period.

    / Reconciliations of GAAP to Non-GAAP Measures (Unaudited)

      Three Months Ended
      March 31, 2025
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      432,322   85.6 %   $        58,893   11.7 %   $      51,865     $        0.59  
    Stock-based compensation expense               3,977   0.8 %              70,243   14.0 %             70,243                 0.80  
    Excess payroll taxes related to stock-based awards                  354   0.1 %                6,016   1.2 %               6,016                 0.07  
    Amortization of intangible assets from acquisitions             23,429   4.6 %              29,151   5.7 %             29,151                 0.33  
    Expenses related to business combinations                  405   0.1 %                4,787   0.9 %               4,787                 0.05  
    Adjustment for income tax effect                     —   — %                      —   — %           (17,913 )             (0.20 )
    Total non-GAAP $      460,487   91.2 %   $      169,090   33.5 %   $    144,149     $        1.64  
                                           

    1 Diluted weighted average shares were 88,127.

      Three Months Ended
      March 31, 2024
    (in thousands, except percentages and per share data) Gross Profit   % of Revenue   Operating Income   % of Revenue   Net Income   EPS – Diluted1
    Total GAAP $      397,938   85.3 %   $       43,339   9.3 %   $      34,778     $        0.40  
    Stock-based compensation expense               3,343   0.7 %             58,664   12.7 %             58,664                 0.66  
    Excess payroll taxes related to stock-based awards                  378   0.1 %                5,362   1.1 %               5,362                 0.06  
    Amortization of intangible assets from acquisitions             22,484   4.8 %             28,629   6.1 %             28,629                 0.33  
    Expenses related to business combinations                     —   — %             14,261   3.0 %             14,261                 0.16  
    Adjustment for income tax effect                     —   — %                      —   — %           (19,698 )             (0.22 )
    Total non-GAAP $      424,143   90.9 %   $     150,255   32.2 %   $    121,996     $        1.39  
                                           

    1 Diluted weighted average shares were 87,780.

      Three Months Ended
    (in thousands) March 31,
    2025    		   March 31,
    2024
    Net cash provided by operating activities $            398,935     $            282,817  
    Cash paid for interest                    9,931                      11,939  
    Tax benefit                   (1,738 )                     (2,089 )
    Unlevered operating cash flows $            407,128     $            292,667  
                   

    / Use of Non-GAAP Measures

    We provide non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income, non-GAAP diluted earnings per share and unlevered operating cash flows as supplemental measures to GAAP regarding our operational performance. These financial measures exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to these financial measures is described below. This press release also contains a reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure, as applicable.

    We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance as well as our performance relative to our competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and employees. In addition, many financial analysts that follow us focus on and publish both historical results and future projections based on non-GAAP financial measures. We believe that it is in the best interest of our investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested, and we have historically reported, these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

    While we believe that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures. These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all our competitors and may not be directly comparable to similarly titled measures of our competitors due to potential differences in the exact method of calculation. We compensate for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.

    The adjustments to these non-GAAP financial measures, and the basis for such adjustments, are outlined below:

    Amortization of intangible assets from acquisitions. We incur amortization of intangible assets, included in our GAAP presentation of amortization expense, related to various acquisitions we have made. We exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance because these costs are fixed at the time of an acquisition, are then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by us after the acquisition. Accordingly, we do not consider these expenses for purposes of evaluating our performance during the applicable time period after the acquisition, and we exclude such expenses when making decisions to allocate resources. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our past reports of financial results as we have historically reported these non-GAAP financial measures.

    Stock-based compensation expense. We incur expense related to stock-based compensation included in our GAAP presentation of cost of maintenance and service; research and development expense; and selling, general and administrative expense. We also incur excess payroll tax expense related to stock-based compensation, which is an additional non-GAAP adjustment. Although stock-based compensation is an expense and viewed as a form of compensation, we exclude these expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance. Specifically, we exclude stock-based compensation during our annual budgeting process and our quarterly and annual assessments of our performance. The annual budgeting process is the primary mechanism whereby we allocate resources to various initiatives and operational requirements. Additionally, the annual review by our Board of Directors during which it compares our historical business model and profitability to the planned business model and profitability for the forthcoming year excludes the impact of stock-based compensation. In evaluating the performance of our senior management and department managers, charges related to stock-based compensation are excluded from expenditure and profitability results. In fact, we record stock-based compensation expense into a stand-alone cost center for which no single operational manager is responsible or accountable. In this way, we can review, on a period-to-period basis, each manager’s performance and assess financial discipline over operational expenditures without the effect of stock-based compensation. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Expenses related to business combinations. We incur expenses for professional services rendered in connection with acquisitions and divestitures, which are included in our GAAP presentation of selling, general and administrative expense. We also incur other expenses directly related to business combinations, including compensation expenses and concurrent restructuring activities, such as employee severances and other exit costs. These costs are included in our GAAP presentation of cost of maintenance and service, selling, general and administrative and research and development expenses. We exclude these acquisition-related expenses for the purpose of calculating non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP operating income, non-GAAP operating profit margin, non-GAAP net income and non-GAAP diluted earnings per share when we evaluate our continuing operational performance, as we generally would not have otherwise incurred these expenses in the periods presented as a part of our operations. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate our operating results and the effectiveness of the methodology used by us to review our operating results, and (b) review historical comparability in our financial reporting as well as comparability with competitors’ operating results.

    Non-GAAP tax provision. We utilize a normalized non-GAAP annual effective tax rate (AETR) to calculate non-GAAP measures. This methodology provides better consistency across interim reporting periods by eliminating the effects of non-recurring items and aligning the non-GAAP tax rate with our expected geographic earnings mix. To project this rate, we analyzed our historic and projected non-GAAP earnings mix by geography along with other factors such as our current tax structure, recurring tax credits and incentives, and expected tax positions. On an annual basis we re-evaluate and update this rate for significant items that may materially affect our projections.

    Unlevered operating cash flows. We make cash payments for the interest incurred in connection with our debt financing which are included in our GAAP presentation of operating cash flows. We exclude this cash paid for interest, net of the associated tax benefit, for the purpose of calculating unlevered operating cash flows. Unlevered operating cash flow is a supplemental non-GAAP measure that we use to evaluate our core operating business. We believe this measure is useful to investors and management because it provides a measure of our cash generated through operating activities independent of the capital structure of the business.

    Non-GAAP financial measures are not in accordance with, or an alternative for, GAAP. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
    We have provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures as listed below:

    GAAP Reporting Measure Non-GAAP Reporting Measure
    Gross Profit Non-GAAP Gross Profit
    Gross Profit Margin Non-GAAP Gross Profit Margin
    Operating Income Non-GAAP Operating Income
    Operating Profit Margin Non-GAAP Operating Profit Margin
    Net Income Non-GAAP Net Income
    Diluted Earnings Per Share Non-GAAP Diluted Earnings Per Share
    Operating Cash Flows Unlevered Operating Cash Flows
       

    Constant currency. In addition to the non-GAAP financial measures detailed above, we use constant currency results for financial and operational decision-making and as a means to evaluate period-to-period comparisons by excluding the effects of foreign currency fluctuations on the reported results. To present this information, the 2025 period results for entities whose functional currency is a currency other than the U.S. Dollar were converted to U.S. Dollars at rates that were in effect for the 2024 comparable period, rather than the actual exchange rates in effect for 2025. Constant currency growth rates are calculated by adjusting the 2025 period reported amounts by the 2025 currency fluctuation impacts and comparing the adjusted amounts to the 2024 comparable period reported amounts. We believe that these non-GAAP financial measures are useful to investors because they allow investors to (a) evaluate the effectiveness of the methodology and information used by us in our financial and operational decision-making, and (b) compare our reported results to our past reports of financial results without the effects of foreign currency fluctuations.

    / About Ansys

    Our Mission: Powering Innovation that Drives Human Advancement™

    When visionary companies need to know how their world-changing ideas will perform, they close the gap between design and reality with Ansys simulation. For more than 50 years, Ansys software has enabled innovators across industries to push boundaries by using the predictive power of simulation. From sustainable transportation to advanced semiconductors, from satellite systems to life-saving medical devices, the next great leaps in human advancement will be powered by Ansys.

    / Forward-Looking Information

    This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are statements that provide current expectations or forecasts of future events based on certain assumptions. Forward-looking statements are subject to risks, uncertainties, and factors relating to our business which could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.

    Forward-looking statements use words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “may,” “outlook,” “plan,” “predict,” “project,” “should,” “target” or other words of similar meaning. Forward-looking statements include those about the proposed transaction with Synopsys, including the expected date of closing and the potential benefits thereof, and other aspects of future operations. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. We undertake no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

    The risks associated with the following, among others, could cause actual results to differ materially from those described in any forward-looking statements:

    • our ability to complete the proposed transaction with Synopsys on anticipated terms and timing, including completing the associated divestiture of our PowerArtist RTL business and obtaining regulatory approvals, and other conditions related to the completion of the transaction with Synopsys;
       
    • the realization of the anticipated benefits of the proposed transaction with Synopsys, including potential disruptions to our and Synopsys’ businesses and commercial relationships with others resulting from the announcement, pendency or completion of the proposed transaction and uncertainty as to the long-term value of Synopsys’ common stock;
       
    • restrictions on our operations during the pendency of the proposed transaction with Synopsys that could impact our ability to pursue certain business opportunities or strategic transactions, including tuck-in M&A;
       
    • adverse conditions in the macroeconomic environment, including inflation, recessionary conditions and volatility in equity and foreign exchange markets;
       
    • political, economic and regulatory uncertainties in the countries and regions in which we operate;
       
    • impacts from tariffs, trade sanctions, export controls or other trade barriers, including export control restrictions and licensing requirements for exports to China;
       
    • impacts resulting from the conflict between Israel and Hamas and other countries and groups in the Middle East, including impacts from changes to diplomatic relations and trade policy between the United States and other countries resulting from the conflict;
       
    • impacts from changes to diplomatic relations and trade policy between the United States and Russia or between the United States and other countries that may support Russia or take similar actions due to the conflict between Russia and Ukraine;
       
    • constrained credit and liquidity due to disruptions in the global economy and financial markets, which may limit or delay availability of credit under our existing or new credit facilities, or which may limit our ability to obtain credit or financing on acceptable terms or at all;
       
    • our ability to timely recruit and retain key personnel in a highly competitive labor market, including potential financial impacts of wage inflation and potential impacts due to the proposed transaction with Synopsys;
       
    • our ability to protect our proprietary technology; cybersecurity threats or other security breaches, including in relation to breaches occurring through our products and an increased level of our activity that is occurring from remote global off-site locations; and disclosure or misuse of employee or customer data whether as a result of a cybersecurity incident or otherwise;
       
    • volatility in our revenue due to the timing, duration and value of multi-year subscription lease contracts; and our reliance on high renewal rates for annual subscription lease and maintenance contracts;
       
    • declines in our customers’ businesses resulting in adverse changes in procurement patterns; disruptions in accounts receivable and cash flow due to customers’ liquidity challenges and commercial deterioration; uncertainties regarding demand for our products and services in the future and our customers’ acceptance of new products; delays or declines in anticipated sales due to reduced or altered sales and marketing interactions with customers; and potential variations in our sales forecast compared to actual sales;
       
    • our ability and our channel partners’ ability to comply with laws and regulations in relevant jurisdictions; and the outcome of contingencies, including legal proceedings, government or regulatory investigations and tax audit cases;
       
    • uncertainty regarding income tax estimates in the jurisdictions in which we operate; and the effect of changes in tax laws and regulations in the jurisdictions in which we operate;
       
    • the quality of our products, including the strength of features, functionality and integrated multiphysics capabilities; our ability to develop and market new products to address the industry’s rapidly changing technology, including the use of artificial intelligence and machine learning in our products as well as the products of our competitors; failures or errors in our products and services; and increased pricing pressure as a result of the competitive environment in which we operate;
       
    • investments in complementary companies, products, services and technologies; our ability to complete and successfully integrate our acquisitions and realize the financial and business benefits of such transactions; and the impact indebtedness incurred in connection with any acquisition could have on our operations;
       
    • investments in global sales and marketing organizations and global business infrastructure, and dependence on our channel partners for the distribution of our products;
       
    • current and potential future impacts of any global health crisis, natural disaster or catastrophe; the actions taken to address these events by our customers, our suppliers, and regulatory authorities; the resulting effects on our business, the global economy and our consolidated financial statements; and other public health and safety risks and related government actions or mandates;
       
    • operational disruptions generally or specifically in connection with transitions to and from remote work environments; and the failure of our technological infrastructure or those of the service providers upon whom we rely including for infrastructure and cloud services;
       
    • our intention to repatriate previously taxed earnings and to reinvest all other earnings of our non-U.S. subsidiaries;
       
    • plans for future capital spending and the extent of corporate benefits from such spending; and higher than anticipated costs for research and development or a slowdown in our research and development activities;
       
    • our ability to execute on our strategies related to environmental, social and governance matters, and meet evolving and varied expectations, including as a result of evolving regulatory and other standards, processes and assumptions, the pace of scientific and technological developments, increased costs and the availability of requisite financing, and changes in carbon markets; and
       
    • other risks and uncertainties described in our reports filed from time to time with the Securities and Exchange Commission (the SEC).  

    Ansys and any and all ANSYS, Inc. brand, product, service and feature names, logos and slogans are registered trademarks or trademarks of ANSYS, Inc. or its subsidiaries in the United States or other countries. All other brand, product, service and feature names or trademarks are the property of their respective owners.

    Visit https://investors.ansys.com for more information.

    ANSS-F

    Photos accompanying this announcement are available at
    https://www.globenewswire.com/NewsRoom/AttachmentNg/555457d0-68c2-4e39-9654-7433c0575e9e

    https://www.globenewswire.com/NewsRoom/AttachmentNg/f9600ece-a84c-4586-bb8a-98965ce32a1c

    https://www.globenewswire.com/NewsRoom/AttachmentNg/131c8a8b-e47c-4724-bdab-f0846535f0df

    The MIL Network –

  • MIL-OSI: First Mid Bancshares, Inc. Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    MATTOON, Ill., April 30, 2025 (GLOBE NEWSWIRE) — First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2025.

    Highlights

    • Record high quarterly net income of $22.2 million, or $0.93 diluted EPS, an increase of $0.13
    • Adjusted net income (non-GAAP*) of $23.1 million, or $0.96 diluted EPS, an increase of $0.09 for the quarter
    • Net interest margin tax equivalent (non-GAAP*) expands to 3.60% helping drive fourth consecutive quarter of growth in net interest income
    • Tangible book value per share (non-GAAP*) increased 4.4% during the quarter
    • Board of Directors declares regular quarterly dividend of $0.24 per share

    “We kicked off 2025 with a record high quarterly net income that reflects our strategic focus on driving a higher return on assets,” said Joe Dively, Chairman and Chief Executive Officer. “We delivered growth in both loans and deposits in what is typically a seasonally pressured quarter, and we significantly expanded our net interest margin through both an increase in earning asset yields and a decrease in the average cost of funds. In addition, we successfully completed our retail online system conversion during the quarter providing a better overall product for our customers and an improved platform to grow relationships across business lines.”

    “Lastly, while we recognize the uncertainty that exists in the macro environment, we are well-prepared with a disciplined credit culture and diversified revenue sources that position us to weather economic disruptions and continue to deliver exceptional service to our customers and communities,” Dively concluded.

    Net Interest Income
    Net interest income for the first quarter of 2025 increased by $0.5 million, or 0.8% compared to the fourth quarter of 2024. The increase was primarily the result of interest expense declining at a faster pace than interest income. Less days in the quarter drove declines in both interest income and expense. The decline in interest income included $0.5 million in lower accretion income, which totaled $2.9 million compared to $3.4 million of accretion income in the fourth quarter.

    In comparison to the first quarter of 2024, net interest income increased $3.9 million, or 7.1%. Interest income was lower by $0.1 million, inclusive of a decline in accretion income of $0.7 million compared to the first quarter last year. Interest expense was lower by $4.1 million compared to the same period last year.

    Net Interest Margin
    Net interest margin, on a tax equivalent basis (non-GAAP), was 3.60% for the first quarter of 2025 representing an increase of 19 basis points over the prior quarter driven by both an increase to earning asset yields and a decrease to funding costs. Excluding the decline in accretion income, the net interest margin increased 23 basis points in the period. Beginning with the first quarter of 2025, the Company changed the methodology utilized for the calculation of net interest margin to be more consistent with what is typically used by peer banks. The calculation now is the annualized net interest income on a tax equivalent basis divided by average interest earning assets. This change added five-basis points to the net interest margin in the first quarter 2025 compared to the fourth quarter of 2024.

    In comparison to the first quarter of last year, the net interest margin increased 35 basis points, with an average earning asset increase of 13 basis points, despite a five-basis point reduction to accretion income.

    Loan Portfolio
    Total loans ended the quarter at $5.70 billion, representing an increase of $26.4 million, or 0.5%, from the prior quarter, despite elevated payoffs during the period.   The increase was primarily in construction and land development, multifamily residential properties, and agriculture operating loans. The largest declines were in commercial real estate and commercial and industrial loans. The average loan balance for the quarter declined compared to the fourth quarter, as a majority of the net loan growth occurred in March 2025.

    In comparison to the first quarter last year, loan growth increased $199.6 million, or 3.6%. The largest increases were in construction and development, agriculture operating lines, and commercial and industrial loans.

    Asset Quality
    The first quarter was another solid performance with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) ended the period at $70.1 million and the ACL to total loans ratio was 1.23%. In addition to the ACL, an unearned discount of $32.6 million remains at quarter end. Provision expense was recorded in the amount of $1.7 million with net charge-offs of $1.8 million in the quarter. Also, at the end of the first quarter, the ratio of non-performing loans to total loans was 0.47%, the ACL to non-performing loans was 263.4%, and the ratio of nonperforming assets to total assets was 0.38%. Nonperforming loans declined by $3.2 million to $26.6 million at quarter end. Special mention loans increased by $16.2 million to $74.0 million and substandard loans decreased $1.6 million to $33.9 million.

    Deposits
    Total deposits ended the quarter at $6.13 billion, which represented an increase of $73.3 million, or 1.2%, from the prior quarter. Noninterest bearing and time deposits were the primary drivers of the increase with growth of $65.4 million and $75.4 million for the period, respectively. The increase in time deposits was driven by a combination of the Company retaining a vast majority of customers with maturing CD’s, gaining new customers with its promotional offerings, and the addition of $52.0 million in brokered deposits as rates declined and the wholesale market became attractive. With the Company’s strong liquidity position, it was able to reduce outstanding FHLB borrowings and subordinated debt during the quarter by a combined $55.5 million helping lower overall funding costs.

    Noninterest Income
    Noninterest income for the first quarter of 2025 was $24.9 million compared to $26.4 million in the fourth quarter of 2024.   The decline was primarily driven by a $1.3 million gain on the sale of property in the fourth quarter. The current quarter included losses on securities sales of $0.2 million. Excluding those two items, noninterest income was flat versus the prior period. The decline of $0.5 million in wealth management revenue was as expected given the seasonal nature of farmland sales. Overall Ag Services revenue was $2.6 million in the period.   Insurance revenues achieved a record high quarter of revenue, despite a challenging operating environment for the industry. Debit card fee income was down $0.6 million primarily driven by less usage due to a pullback in consumer spending.

    In comparison to the first quarter of 2024, noninterest income increased $0.4 million, or 1.6%, with increases in wealth management and insurance as the key drivers. The combined increase for these two business lines was 8.2% year-over-year. Debit card fee income reflected the largest decline from lower consumer spending in the first quarter of 2025.

    Noninterest Expenses
    Noninterest expense for the first quarter of 2025 totaled $54.5 million compared to $56.3 million in the prior quarter. The current quarter included $1.0 million of nonrecurring expenses primarily related to the Company’s technology initiatives, including the successful conversion of its retail online platform during the first quarter, versus $2.2 million in nonrecurring costs in the prior quarter. Excluding these items, noninterest expenses were down $0.6 million with the largest decreases in salaries and benefits and debit card expenses.

    In comparison to the first quarter of 2024, noninterest expenses increased $1.1 million. The increase was primarily driven by annual compensation increases and a $0.9 million credit in the first quarter of last year for a debit card fee negotiated settlement agreement with its primary provider.

    The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2025 was 58.9% compared to 58.8% in the prior quarter and 59.1% for the same period last year.

    Capital Levels and Dividend
    The Company’s capital levels remained strong and above the “well capitalized” levels. Capital levels ended the period as follows:

    Total capital to risk-weighted assets 15.59%
    Tier 1 capital to risk-weighted assets 13.13%
    Common equity tier 1 capital to risk-weighted assets 12.73%
    Leverage ratio 10.73%
       

    Tangible book value per share (non-GAAP) increased $1.07, or 4.4% during the first quarter of 2025. The increase was driven primarily by earnings growth, which accounted for $0.79 of the increase. The remaining increase of $0.28 was the result of improvement in accumulated other comprehensive income from a lower unrealized loss position in the investment portfolio.

    The Company’s Board of Directors approved a regular quarterly dividend of $0.24 payable on May 30, 2025, for shareholders of record on May 15, 2025.

    About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $7.6 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, and Wisconsin and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 160 years. More information about the Company is available on our website at www.firstmid.com.

    *Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Earnings,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” “Tangible Book Value per Common Share,” “Adjusted Tangible Book Value per Common Share,” “Adjusted Return on Assets,” and “Adjusted Return on Average Common Equity”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.

    Forward Looking Statements
    This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; and the impact of pandemics on First Mid’s businesses. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

    Investor Contact:
    Austin Frank
    SVP, Shareholder Relations
    217-258-5522
    afrank@firstmid.com

    Matt Smith
    Chief Financial Officer
    217-258-1528
    msmith@firstmid.com

    – Tables Follow –

               
    FIRST MID BANCSHARES, INC.
    Condensed Consolidated Balance Sheets
    (In thousands, unaudited)
     
      As of
      March 31,   December 31,   March 31,
      2025   2024   2024
               
    Assets          
    Cash and cash equivalents $ 201,470     $ 121,216     $ 355,701  
    Investment securities   1,049,003       1,073,510       1,149,752  
    Loans (including loans held for sale)   5,698,858       5,672,462       5,499,295  
    Less allowance for credit losses   (70,051 )     (70,182 )     (67,936 )
    Net loans   5,628,807       5,602,280       5,431,359  
    Premises and equipment, net   97,446       100,234       101,666  
    Goodwill and intangibles, net   258,671       261,906       260,699  
    Bank Owned Life Insurance   171,127       170,854       167,247  
    Other assets   166,164       189,734       211,822  
    Total assets $ 7,572,688     $ 7,519,734     $ 7,678,246  
               
    Liabilities and Stockholders’ Equity          
    Deposits:          
    Non-interest bearing $ 1,394,590     $ 1,329,155     $ 1,448,299  
    Interest bearing   4,735,790       4,727,941       4,794,637  
    Total deposits   6,130,380       6,057,096       6,242,936  
    Repurchase agreements with customers   219,772       204,122       210,719  
    Other borrowings   195,000       242,520       238,761  
    Junior subordinated debentures   24,335       24,280       24,113  
    Subordinated debt   79,535       87,472       106,862  
    Other liabilities   52,717       57,853       56,903  
    Total liabilities   6,701,739       6,673,343       6,880,294  
               
    Total stockholders’ equity   870,949       846,391       797,952  
    Total liabilities and stockholders’ equity $ 7,572,688     $ 7,519,734     $ 7,678,246  
               
    FIRST MID BANCSHARES, INC.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data, unaudited)
           
      Three Months Ended
      March 31,
      2025   2024
    Interest income:      
    Interest and fees on loans $ 79,918     $ 77,823  
    Interest on investment securities   6,777       7,405  
    Interest on federal funds sold & other deposits   864       2,444  
    Total interest income   87,559       87,672  
    Interest expense:      
    Interest on deposits   23,722       26,096  
    Interest on securities sold under agreements to repurchase   1,180       2,056  
    Interest on other borrowings   1,831       2,314  
    Interest on jr. subordinated debentures   468       542  
    Interest on subordinated debt   949       1,194  
    Total interest expense   28,150       32,202  
    Net interest income   59,409       55,470  
    Provision for credit losses   1,652       (357 )
    Net interest income after provision for credit losses   57,757       55,827  
    Non-interest income:      
    Wealth management revenues   5,800       5,322  
    Insurance commissions   9,925       9,213  
    Service charges   2,901       2,956  
    Net securities gains/(losses)   (181 )     0  
    Mortgage banking revenues   711       706  
    ATM/debit card revenue   3,646       4,055  
    Other   2,062       2,226  
    Total non-interest income   24,864       24,478  
    Non-interest expense:      
    Salaries and employee benefits   31,748       30,448  
    Net occupancy and equipment expense   8,479       7,560  
    Net other real estate owned (income) expense   101       (21 )
    FDIC insurance   849       869  
    Amortization of intangible assets   3,231       3,497  
    Stationary and supplies   431       391  
    Legal and professional expense   3,076       2,449  
    ATM/debit card expense   1,831       1,191  
    Marketing and donations   852       862  
    Other   3,874       6,116  
    Total non-interest expense   54,472       53,362  
    Income before income taxes   28,149       26,943  
    Income taxes   5,978       6,440  
    Net income $ 22,171     $ 20,503  
           
    Per Share Information      
    Basic earnings per common share $ 0.93     $ 0.86  
    Diluted earnings per common share   0.93       0.86  
           
    Weighted average shares outstanding   23,858,817       23,872,731  
    Diluted weighted average shares outstanding   23,959,228       23,960,335  
           
    FIRST MID BANCSHARES, INC.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data, unaudited)
                       
      For the Quarter Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
      2025     2024     2024   2024   2024
    Interest income:                  
    Interest and fees on loans $ 79,918     $ 81,288     $ 81,775     $ 79,560     $ 77,823  
    Interest on investment securities   6,777       6,990       7,036       7,405       7,405  
    Interest on federal funds sold & other deposits   864       1,564       2,371       1,718       2,444  
    Total interest income   87,559       89,842       91,182       88,683       87,672  
    Interest expense:                  
    Interest on deposits   23,722       26,144       28,341       26,338       26,096  
    Interest on securities sold under agreements to repurchase   1,180       1,333       1,444       1,615       2,056  
    Interest on other borrowings   1,831       1,917       2,195       2,248       2,314  
    Interest on jr. subordinated debentures   468       510       567       537       542  
    Interest on subordinated debt   949       988       1,092       1,180       1,194  
    Total interest expense   28,150       30,892       33,639       31,918       32,202  
    Net interest income   59,409       58,950       57,543       56,765       55,470  
    Provision for credit losses   1,652       3,643       1,266       1,083       (357 )
    Net interest income after provision for credit losses   57,757       55,307       56,277       55,682       55,827  
    Non-interest income:                  
    Wealth management revenues   5,800       6,275       5,816       5,405       5,322  
    Insurance commissions   9,925       6,805       6,003       6,531       9,213  
    Service charges   2,901       3,058       3,121       3,227       2,956  
    Net securities gains/(losses)   (181 )     0       (277 )     (156 )     0  
    Mortgage banking revenues   711       1,104       1,109       1,038       706  
    ATM/debit card revenue   3,646       4,204       4,267       4,281       4,055  
    Other   2,062       4,917       2,984       2,096       2,226  
    Total non-interest income   24,864       26,363       23,023       22,422       24,478  
    Non-interest expense:                  
    Salaries and employee benefits   31,748       31,957       31,565       30,164       30,448  
    Net occupancy and equipment expense   8,479       7,285       8,055       7,507       7,560  
    Net other real estate owned (income) expense   101       240       107       85       (21 )
    FDIC insurance   849       863       829       902       869  
    Amortization of intangible assets   3,231       3,314       3,405       3,340       3,497  
    Stationary and supplies   431       642       482       370       391  
    Legal and professional expense   3,076       5,386       2,573       2,536       2,449  
    ATM/debit card expense   1,831       2,043       1,869       1,281       1,191  
    Marketing and donations   852       906       836       814       862  
    Other   3,874       3,661       4,212       4,392       6,116  
    Total non-interest expense   54,472       56,297       53,933       51,391       53,362  
    Income before income taxes   28,149       25,373       25,367       26,713       26,943  
    Income taxes   5,978       6,205       5,885       6,968       6,440  
    Net income $ 22,171     $ 19,168     $ 19,482     $ 19,745     $ 20,503  
                       
    Per Share Information                  
    Basic earnings per common share $ 0.93     $ 0.80     $ 0.81     $ 0.83     $ 0.86  
    Diluted earnings per common share   0.93       0.80       0.81       0.82       0.86  
                       
    Weighted average shares outstanding   23,858,817       23,818,806       23,905,099       23,896,210       23,872,731  
    Diluted weighted average shares outstanding   23,959,228       23,908,340       24,006,647       23,998,152       23,960,335  
                       
    FIRST MID BANCSHARES, INC.
    Consolidated Financial Highlights and Ratios
    (Dollars in thousands, except per share data)
    (Unaudited)
     
        As of and for the Quarter Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
        2025   2024   2024   2024   2024
                         
    Loan Portfolio                    
    Construction and land development   $ 269,148     $ 236,093     $ 190,857     $ 195,389     $ 186,851  
    Farm real estate loans     373,413       390,760       384,620       387,015       388,941  
    1-4 Family residential properties     488,139       496,597       505,342       507,517       518,641  
    Multifamily residential properties     356,858       332,644       338,167       334,446       312,758  
    Commercial real estate     2,397,985       2,417,585       2,440,120       2,406,955       2,396,092  
    Loans secured by real estate     3,885,543       3,873,679       3,859,106       3,831,322       3,803,283  
    Agricultural operating loans     296,811       239,671       233,414       213,997       213,217  
    Commercial and industrial loans     1,303,712       1,335,920       1,283,631       1,268,646       1,227,906  
    Consumer loans     47,220       53,960       63,222       70,841       79,569  
    All other loans     165,572       169,232       175,218       175,811       175,320  
    Total loans     5,698,858       5,672,462       5,614,591       5,560,617       5,499,295  
                         
    Deposit Portfolio                    
    Non-interest bearing demand deposits   $ 1,394,590     $ 1,329,155     $ 1,387,290     $ 1,393,336     $ 1,448,299  
    Interest bearing demand deposits     1,814,427       1,907,733       1,834,123       1,909,993       1,974,857  
    Savings deposits     643,289       636,427       648,582       673,381       704,777  
    Money Market     1,215,420       1,196,537       1,183,594       1,127,699       1,107,177  
    Time deposits     1,062,654       987,244       1,035,245       1,011,370       1,007,826  
    Total deposits     6,130,380       6,057,096       6,088,834       6,115,779       6,242,936  
                         
    Asset Quality                    
    Non-performing loans   $ 26,598     $ 29,835     $ 18,242     $ 19,079     $ 20,064  
    Non-performing assets     28,703       32,030       20,076       20,557       21,471  
    Net charge-offs (recoveries)     1,783       2,235       804       708       381  
    Allowance for credit losses to non-performing loans     263.36 %     235.23 %     377.01 %     358.05 %     338.60 %
    Allowance for credit losses to total loans outstanding     1.23 %     1.24 %     1.22 %     1.23 %     1.24 %
    Nonperforming loans to total loans     0.47 %     0.53 %     0.32 %     0.34 %     0.36 %
    Nonperforming assets to total assets     0.38 %     0.43 %     0.27 %     0.27 %     0.28 %
    Special Mention loans     74,019       57,848       38,151       30,767       65,693  
    Substandard and Doubtful loans     33,884       35,516       29,037       27,594       29,296  
                         
    Common Share Data                    
    Common shares outstanding     23,981,916       23,895,807       23,904,051       23,895,868       23,888,929  
    Book value per common share   $ 36.32     $ 35.42     $ 35.91     $ 34.05     $ 33.40  
    Tangible book value per common share (1)     25.53       24.46       24.82       23.28       22.49  
    Tangible book value per common share excluding other comprehensive income at period end (1)     31.21       30.42       29.70       29.43       28.67  
    Market price of stock     34.90       36.82       38.91       32.88       32.68  
                         
    Key Performance Ratios and Metrics                    
    End of period earning assets   $ 6,844,096     $ 6,775,075     $ 6,786,458     $ 6,812,574     $ 6,923,742  
    Average earning assets     6,769,858       6,884,303       6,857,070       6,815,932       6,884,855  
    Average rate on average earning assets (tax equivalent)     5.29 %     5.24 %     5.35 %     5.27 %     5.16 %
    Average rate on cost of funds     1.74 %     1.83 %     2.00 %     1.91 %     1.91 %
    Net interest margin (tax equivalent) (1)(2)     3.60 %     3.41 %     3.35 %     3.36 %     3.25 %
    Return on average assets     1.19 %     1.01 %     1.03 %     1.05 %     1.07 %
    Adjusted return on average assets (1)     1.23 %     1.10 %     1.05 %     1.07 %     1.17 %
    Return on average common equity     10.35 %     9.04 %     9.40 %     9.92 %     10.37 %
    Adjusted return on average common equity (1)     10.78 %     9.80 %     9.58 %     10.11 %     11.28 %
    Efficiency ratio (tax equivalent) (1)     58.88 %     58.76 %     61.33 %     59.61 %     59.09 %
    Full-time equivalent employees     1,194       1,198       1,207       1,185       1,188  
                         
                         
    1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.
    2 During the first quarter 2025, the Company changed the methodology utilized for the calculation of net interest margin to be more consistent with what is typically used by peer banks and research analysts. The calculation now is the annualized net interest income on a tax equivalent basis divided by average interest earning assets.
                     
    FIRST MID BANCSHARES, INC.
    Net Interest Margin
    (In thousands, unaudited)
     
      For the Quarter Ended March 31, 2025
      QTD Average       Average
      Balance   Interest   Rate
    INTEREST EARNING ASSETS          
    Interest bearing deposits $ 70,701     $ 827       4.74 %
    Federal funds sold   75       1       5.41 %
    Certificates of deposits investments   3,162       36       4.62 %
    Investment Securities   1,090,099       7,254       2.66 %
    Loans (net of unearned income)   5,605,821       80,194       5.80 %
               
    Total interest earning assets   6,769,858       88,312       5.29 %
               
    NONEARNING ASSETS          
    Other nonearning assets   777,177          
    Allowance for loan losses   (70,620 )        
               
    Total assets $ 7,476,415          
               
    INTEREST BEARING LIABILITIES          
    Demand deposits $ 3,039,621     $ 14,900       1.99 %
    Savings deposits   640,687       164       0.10 %
    Time deposits   1,022,200       8,658       3.44 %
    Total interest bearing deposits   4,702,508       23,722       2.05 %
    Repurchase agreements   201,679       1,180       2.37 %
    FHLB advances   194,324       1,807       3.77 %
    Federal funds purchased   –       –       0.00 %
    Subordinated debt   82,608       949       4.66 %
    Jr. subordinated debentures   24,306       468       7.81 %
    Other debt   1,467       24       6.63 %
    Total borrowings   504,384       4,428       3.56 %
    Total interest bearing liabilities   5,206,892       28,150       2.19 %
               
    NONINTEREST BEARING LIABILITIES          
    Demand deposits   1,370,107     Average cost of funds   1.74 %
    Other liabilities   42,946          
    Stockholders’ equity   856,470          
               
    Total liabilities & stockholders’ equity $ 7,476,415          
               
    Net Interest Earnings / Spread     $ 60,162       3.10 %
               
    Tax effected yield on interest earning assets         3.60 %
               
    Tax equivalent net interest margin is a non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.
               
    FIRST MID BANCSHARES, INC.
    Reconciliation of Non-GAAP Financial Measures
    (In thousands, unaudited)
                       
      As of and for the Quarter Ended
      March 31,   December 31,   September 30,
    		   June 30,   March 31,
      2025   2024   2024   2024   2024
                       
    Net interest income as reported $ 59,409     $ 58,950     $ 57,543     $ 56,765     $ 55,470  
    Net interest income, (tax equivalent)   60,162       59,717       58,627       57,361       56,086  
    Average earning assets   6,769,858       6,884,303       6,857,070       6,815,932       6,884,855  
    Net interest margin (tax equivalent)   3.60 %     3.41 %     3.35 %     3.36 %     3.25 %
                       
                       
    Common stockholder’s equity $ 870,949     $ 846,391     $ 858,497     $ 813,645     $ 797,952  
    Goodwill and intangibles, net   258,671       261,906       265,139       257,377       260,699  
    Common shares outstanding   23,982       23,896       23,904       23,896       23,889  
    Tangible Book Value per common share $ 25.53     $ 24.46     $ 24.82     $ 23.28     $ 22.49  
    Accumulated other comprehensive loss (AOCI)   (136,097 )     (142,383 )     (116,692 )     (146,998 )     (147,667 )
    Adjusted tangible book value per common share $ 31.21     $ 30.42     $ 29.70     $ 29.43     $ 28.67  
                       
    FIRST MID BANCSHARES, INC.
    Reconciliation of Non-GAAP Financial Measures
    (In thousands, except per share data, unaudited)
                       
      As of and for the Quarter Ended
      March 31,   December 31,   September 30, June 30,   March 31,
      2025   2024   2024   2024   2024
    Adjusted earnings Reconciliation                  
    Net Income – GAAP $ 22,171     $ 19,168     $ 19,482     $ 19,745     $ 20,503  
    Adjustments (post-tax): (1)                  
    Nonrecurring technology project expenses   728       1,710       –       –       –  
    Net (gain)/loss on securities sales   143       –       219       123       –  
    Integration and acquisition expenses   41       –       137       250       1,804  
    Total non-recurring adjustments (non-GAAP) $ 912     $ 1,710     $ 356     $ 373     $ 1,804  
                       
    Adjusted earnings – non-GAAP $ 23,083     $ 20,878     $ 19,838     $ 20,118     $ 22,307  
    Adjusted diluted earnings per share (non-GAAP) $ 0.96     $ 0.87     $ 0.83     $ 0.84     $ 0.93  
    Adjusted return on average assets – non-GAAP   1.23 %     1.10 %     1.05 %     1.07 %     1.17 %
    Adjusted return on average common equity – non-GAAP   10.78 %     9.80 %     9.58 %     10.11 %     11.28 %
                       
                       
    Efficiency Ratio Reconciliation                  
    Noninterest expense – GAAP $ 54,472     $ 56,297     $ 53,933     $ 51,391     $ 53,362  
    Other real estate owned property income (expense)   (101 )     (240 )     (107 )     (85 )     21  
    Amortization of intangibles   (3,231 )     (3,314 )     (3,405 )     (3,340 )     (3,497 )
    Nonrecurring technology project expense   (921 )     (2,164 )     –       –       –  
    Integration and acquisition expenses   (52 )     –       (174 )     (316 )     (2,283 )
    Adjusted noninterest expense (non-GAAP) $ 50,167     $ 50,579     $ 50,247     $ 47,650     $ 47,603  
                       
    Net interest income -GAAP $ 59,409     $ 58,950     $ 57,543     $ 56,765     $ 55,470  
    Effect of tax-exempt income (1)   753       767       1,084       596       616  
    Adjusted net interest income (non-GAAP) $ 60,162     $ 59,717     $ 58,627     $ 57,361     $ 56,086  
                       
    Noninterest income – GAAP $ 24,864     $ 26,363     $ 23,023     $ 22,422     $ 24,478  
    Net (gain)/loss on securities sales   181       0       277       156       0  
    Adjusted noninterest income (non-GAAP) $ 25,045     $ 26,363     $ 23,300     $ 22,578     $ 24,478  
                       
    Adjusted total revenue (non-GAAP) $ 85,207     $ 86,080     $ 81,927     $ 79,939     $ 80,564  
                       
    Efficiency ratio (non-GAAP)   58.88 %     58.76 %     61.33 %     59.61 %     59.09 %
                       
    (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.

    The MIL Network –

  • MIL-OSI: Tenaris Announces 2025 First Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    The financial and operational information contained in this press release is based on unaudited consolidated condensed interim financial statements presented in U.S. dollars and prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standard Board and adopted by the European Union, or IFRS. Additionally, this press release includes non-IFRS alternative performance measures i.e., EBITDA, Free Cash Flow, Net cash / debt and Operating working capital days. See exhibit I for more details on these alternative performance measures.

    LUXEMBOURG, April 30, 2025 (GLOBE NEWSWIRE) — Tenaris S.A. (NYSE and Mexico: TS and EXM Italy: TEN) (“Tenaris”) today announced its results for the quarter ended March 31, 2025 in comparison with its results for the quarter ended March 31, 2024.

    Summary of 2025 First Quarter Results

    (Comparison with fourth and first quarter of 2024)

      1Q 2025 4Q 2024 1Q 2024 
    Net sales ($ million) 2,922 2,845 3% 3,442 (15%)
    Operating income ($ million) 550 558 (2%) 812 (32%)
    Net income ($ million) 518 519 0% 750 (31%)
    Shareholders’ net income ($ million) 507 516 (2%) 737 (31%)
    Earnings per ADS ($) 0.94 0.94 0% 1.27 (26%)
    Earnings per share ($) 0.47 0.47 0% 0.64 (26%)
    EBITDA* ($ million) 696 726 (4%) 987 (29%)
    EBITDA margin (% of net sales) 23.8% 25.5%   28.7%  
     
    *EBITDA in the fourth quarter of 2024 included a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. If this charge was not included EBITDA would have amounted to $659 million, or 23.2% of sales.
     

    In the first quarter, our sales were buoyed by seasonal volumes in Canada and higher onshore sales in the USA while our average selling price declined. This was due to market and product mix effects with lower sales of OCTG premium products in Mexico, Turkey and Saudi Arabia and lower sales of seamless line pipe for offshore projects. On a comparable basis our EBITDA rose 6% and net income remained in line with the results of the previous quarter.

    During the quarter, free cash flow amounted to $647 million following a reduction in working capital of $224 million. After spending $237 million on share buybacks, our net cash position increased to $4.0 billion at March 31, 2025.

    Market Background and Outlook

    Oil and gas drilling activity has been stable in most parts of the world so far this year. Over the last month, however, the outlook for oil demand and prices has changed with a decline in expectations for global economic growth and the announcement by OPEC+ that it would increase production. Oil and gas companies are likely to adjust their investment plans over the short term in response to a lower oil and gas price environment while maintaining their medium and long term plans for development of major projects.

    US OCTG reference prices have continued to increase following the extension of tariffs to imports of all steel products. These and further increases should offset much of the impact of the tariffs and higher steel and scrap purchase costs on our US operations.

    For the second quarter, we expect our sales to show a small increase as our average selling price recovers and volumes remain close to the level of the first quarter and our EBITDA margin should be in line with the first quarter.

    Analysis of 2025 First Quarter Results

    Tubes

    The following table indicates, for our Tubes business segment, sales volumes of seamless and welded pipes for the periods indicated below:

    Tubes Sales volume (thousand metric tons) 1Q 2025 4Q 2024
    		 1Q 2024
    Seamless 775 748 4% 777 0%
    Welded 212 164 29% 269 (21%)
    Total 987 913 8% 1,046 (6%)
               

    The following table indicates, for our Tubes business segment, net sales by geographic region, operating income and operating income as a percentage of net sales for the periods indicated below:

    Tubes 1Q 2025 4Q 2024
    		 1Q 2024
    Net sales ($ million)          
    North America 1,244 1,131 10% 1,590 (22%)
    South America 552 595 (7%) 617 (11%)
    Europe 208 341 (39%) 253 (17%)
    Asia Pacific, Middle East and Africa 761 629 21% 833 (9%)
    Total net sales ($ million) 2,765 2,695 3% 3,292 (16%)
    Services performed on third party tubes ($ million) 101 93 9% 192 (47%)
    Operating income ($ million) 514 533 (4%) 785 (35%)
    Operating margin (% of sales) 18.6% 19.8%   23.9%  
               

    Net sales of tubular products and services increased 3% sequentially and decreased 16% year on year. Volumes sold increased 8% sequentially while average selling prices decreased 5% due principally to product and market mix effects. In North America sales increased as higher seasonal sales in Canada and higher sales to US Rig Direct® customers more than outweighed a further steep decline in sales in Mexico. In South America sales declined due to lower shipments to the Raia offshore project and lower prices in Argentina. In Europe, following a quarter with an exceptionally high level of sales, sales declined to a more stable level. In Asia Pacific, Middle East and Africa sales increased due to higher sales in the UAE, shipments of welded pipes for a pipeline in Saudi Arabia, and sales of line pipe for a gas processing plant in Africa.

    Operating results from tubular products and services amounted to a gain of $514 million in the first quarter of 2025 compared to a gain of $533 million in the previous quarter and a gain of $785 million in the first quarter of 2024. Operating income in the fourth quarter of 2024 included a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas. Excluding this gain Tubes operating income would have amounted to $467 million (17.3% of sales) in the fourth quarter of 2024. On a comparable basis, margins improved as the decline in average selling prices was offset by lower costs due to higher utilization of production capacity and lower raw materials and variable costs.

    Others

    The following table indicates, for our Others business segment, net sales, operating income and operating income as a percentage of net sales for the periods indicated below:

    Others 1Q 2025 4Q 2024 1Q 2024
    Net sales ($ million) 157 150 5% 150 4%
    Operating income ($ million) 36 25 44% 26 38%
    Operating margin (% of sales) 23.1% 16.8%   17.5%  
               

    Net sales of other products and services increased 5% sequentially and increased 4% year on year. Sequentially, sales increased mainly due to higher sales of sucker rods and oil services in Argentina.

    Selling, general and administrative expenses, or SG&A, amounted to $457 million, or 15.6% of net sales, in the first quarter of 2025, compared to $446 million, or 15.7% in the previous quarter and $508 million, or 14.8% in the first quarter of 2024. Sequentially, the increase in SG&A is mainly due to higher shipment costs partially offset by a decrease in taxes, provisions and others.

    Other operating results amounted to a gain of $6 million in the first quarter of 2025, compared to a gain of $81 million in the previous quarter and a $12 million gain in the first quarter of 2024. The fourth quarter of 2024 included a $67 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas.

    Financial results amounted to a gain of $35 million in the first quarter of 2025, compared to a gain of $48 million in the previous quarter and a loss of $25 million in the first quarter of 2024. Financial result of the quarter is mainly attributable to a $67 million net finance income from the net return of our portfolio investments offset by net foreign exchange losses of $15 million and $16 million in fees paid in connection with the collection of $242 million from Pemex.

    Equity in earnings of non-consolidated companies generated a gain of $14 million in the first quarter of 2025, compared to a gain of $35 million in the previous quarter and a gain of $48 million in the first quarter of 2024. These results are mainly derived from our participation in Ternium (NYSE:TX). During the fourth quarter of 2024 the result from Ternium´s investment included a $43 million gain from the partial reversal of a provision for the ongoing litigation related to the acquisition of a participation in Usiminas, while in the first quarter of 2025 it includes a $5 million loss related to the same ongoing litigation.

    Income tax charge amounted to $81 million in the first quarter of 2025, compared to $123 million in the previous quarter and $85 million in the first quarter of 2024. The quarter income tax charge reflects the positive net effect from foreign exchange rate movements and inflation adjustments on deferred tax assets and liabilities, mainly in Argentina, and the recognition of other deferred tax assets.

    Cash Flow and Liquidity of 2025 First Quarter

    Net cash generated by operating activities during the first quarter of 2025 was $821 million, compared to $492 million in the previous quarter and $887 million in the first quarter of 2024. During the first quarter of 2025 cash generated by operating activities includes a net working capital reduction of $224 million.

    With capital expenditures of $174 million, our free cash flow amounted to $647 million during the quarter. Following share buybacks of $237 million in the quarter, our net cash position increased to $4.0 billion at March 31, 2025.

    Conference call

    Tenaris will hold a conference call to discuss the above reported results, on May 1, 2025, at 08:00 a.m. (Eastern Time). Following a brief summary, the conference call will be opened to questions.

    To listen to the conference please join through one of the following options:
    ir.tenaris.com/events-and-presentations or
    https://edge.media-server.com/mmc/p/gu6ip3ag/

    If you wish to participate in the Q&A session please register at the following link:
    https://register-conf.media-server.com/register/BIf49770ff47c94e2587121e780b6acb85

    Please connect 10 minutes before the scheduled start time.

    A replay of the conference call will also be available on our webpage at: ir.tenaris.com/events-and-presentations

    Some of the statements contained in this press release are “forward-looking statements”. Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to future oil and gas prices and their impact on investment programs by oil and gas companies.

     
    Consolidated Condensed Interim Income Statement
     
    (all amounts in thousands of U.S. dollars) Three-month period ended March 31,
      2025 2024
      Unaudited
    Net sales 2,922,212 3,441,544
    Cost of sales (1,920,855) (2,134,052)
    Gross profit 1,001,357 1,307,492
    Selling, general and administrative expenses (457,065) (508,132)
    Other operating income 11,788 16,024
    Other operating expenses (6,167) (3,720)
    Operating income 549,913 811,664
    Finance Income 78,444 56,289
    Finance Cost (11,745) (20,583)
    Other financial results, net (31,441) (60,468)
    Income before equity in earnings of non-consolidated companies and income tax 585,171 786,902
    Equity in earnings of non-consolidated companies 14,035 48,179
    Income before income tax 599,206 835,081
    Income tax (81,342) (84,856)
    Income for the period 517,864 750,225
         
    Attributable to:    
    Shareholders’ equity 506,931 736,980
    Non-controlling interests 10,933 13,245
      517,864 750,225
     
    Consolidated Condensed Interim Statement of Financial Position
     
    (all amounts in thousands of U.S. dollars) At March 31, 2025   At December 31, 2024
      Unaudited    
    ASSETS          
    Non-current assets          
    Property, plant and equipment, net 6,183,251     6,121,471  
    Intangible assets, net 1,359,463     1,357,749  
    Right-of-use assets, net 147,606     148,868  
    Investments in non-consolidated companies 1,574,156     1,543,657  
    Other investments 1,014,502     1,005,300  
    Deferred tax assets 838,912     831,298  
    Receivables, net 197,411 11,315,301   205,602 11,213,945
    Current assets          
    Inventories, net 3,519,237     3,709,942  
    Receivables and prepayments, net 174,294     179,614  
    Current tax assets 360,416     332,621  
    Contract assets 51,736     50,757  
    Trade receivables, net 1,842,313     1,907,507  
    Derivative financial instruments 4,083     7,484  
    Other investments 2,581,761     2,372,999  
    Cash and cash equivalents 770,208 9,304,048    675,256 9,236,180
    Total assets   20,619,349     20,450,125
    EQUITY          
    Shareholders’ equity   17,164,683     16,593,257
    Non-controlling interests   231,994     220,578
    Total equity   17,396,677     16,813,835
    LIABILITIES          
    Non-current liabilities          
    Borrowings 7,437     11,399  
    Lease liabilities 91,148     100,436  
    Deferred tax liabilities 472,789     503,941  
    Other liabilities 300,116     301,751  
    Provisions 68,969 940,459   82,106 999,633
    Current liabilities          
    Borrowings 345,183     425,999  
    Lease liabilities 54,061     44,490  
    Derivative financial instruments 1,945     8,300  
    Current tax liabilities 304,019     366,292  
    Other liabilities 377,238     585,775  
    Provisions 139,965     119,344  
    Customer advances 228,086     206,196  
    Trade payables 831,716 2,282,213   880,261 2,636,657
    Total liabilities   3,222,672     3,636,290
    Total equity and liabilities   20,619,349     20,450,125
     
    Consolidated Condensed Interim Statement of Cash Flows
     
    (all amounts in thousands of U.S. dollars) Three-month period ended March 31,
      2025 2024
      (Unaudited)
    Cash flows from operating activities    
    Income for the period 517,864 750,225
    Adjustments for:    
    Depreciation and amortization 146,406 175,442
    Provision for the ongoing litigation related to the acquisition of participation in Usiminas 9,877 –
    Income tax accruals less payments (54,133) (29,222)
    Equity in earnings of non-consolidated companies (14,035) (48,179)
    Interest accruals less payments, net (8,423) 11,938
    Changes in provisions (2,393) 1,545
    Changes in working capital 223,817 (9,548)
    Others, including net foreign exchange 2,020 34,776
    Net cash provided by operating activities 821,000 886,977
         
    Cash flows from investing activities    
    Capital expenditures (173,838) (172,097)
    Changes in advances to suppliers of property, plant and equipment 12,916 2,952
    Loan to joint ventures (1,359) (1,354)
    Proceeds from disposal of property, plant and equipment and intangible assets 900 5,412
    Changes in investments in securities (225,636) (759,667)
    Net cash used in investing activities (387,017) (924,754)
         
    Cash flows from financing activities    
    Changes in non-controlling interests – 1,120
    Acquisition of treasury shares (237,188) (311,064)
    Payments of lease liabilities (14,655) (16,768)
    Proceeds from borrowings 347,570 829,947
    Repayments of borrowings (429,126) (754,078)
    Net cash used in financing activities (333,399) (250,843)
         
    Increase (decrease) in cash and cash equivalents 100,584 (288,620)
         
    Movement in cash and cash equivalents    
    At the beginning of the period 660,798 1,616,597
    Effect of exchange rate changes (2,430) (4,921)
    Increase (decrease) in cash and cash equivalents 100,584 (288,620)
    At March 31, 758,952 1,323,056
         

    Exhibit I – Alternative performance measures

    Alternative performance measures should be considered in addition to, not as substitute for or superior to, other measures of financial performance prepared in accordance with IFRS.

    EBITDA, Earnings before interest, tax, depreciation and amortization.

    EBITDA provides an analysis of the operating results excluding depreciation and amortization and impairments, as they are recurring non-cash variables which can vary substantially from company to company depending on accounting policies and the accounting value of the assets. EBITDA is an approximation to pre-tax operating cash flow and reflects cash generation before working capital variation. EBITDA is widely used by investors when evaluating businesses (multiples valuation), as well as by rating agencies and creditors to evaluate the level of debt, comparing EBITDA with net debt.

    EBITDA is calculated in the following manner:

    EBITDA = Net income for the period + Income tax charges +/- Equity in Earnings (losses) of non-consolidated companies +/- Financial results + Depreciation and amortization +/- Impairment charges/(reversals).

    EBITDA is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended March 31,
      2025 2024
    Income for the period 517,864 750,225
    Income tax charge 81,342 84,856
    Equity in earnings of non-consolidated companies (14,035) (48,179)
    Financial Results (35,258) 24,762
    Depreciation and amortization 146,406 175,442
    EBITDA 696,319 987,106
         

    Free Cash Flow

    Free cash flow is a measure of financial performance, calculated as operating cash flow less capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.

    Free cash flow is calculated in the following manner:

    Free cash flow = Net cash (used in) provided by operating activities – Capital expenditures.

    Free cash flow is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) Three-month period ended March 31,
      2025 2024
    Net cash provided by operating activities 821,000 886,977
    Capital expenditures (173,838) (172,097)
    Free cash flow 647,162 714,880
         

    Net Cash / (Debt)

    This is the net balance of cash and cash equivalents, other current investments and fixed income investments held to maturity less total borrowings. It provides a summary of the financial solvency and liquidity of the company. Net cash / (debt) is widely used by investors and rating agencies and creditors to assess the company’s leverage, financial strength, flexibility and risks.

    Net cash/ debt is calculated in the following manner:

    Net cash = Cash and cash equivalents + Other investments (Current and Non-Current)+/- Derivatives hedging borrowings and investments – Borrowings (Current and Non-Current).

    Net cash/debt is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) At March 31,
      2025 2024
    Cash and cash equivalents 770,208 1,323,350
    Other current investments 2,581,761 2,248,863
    Non-current investments 1,007,444 976,206
    Current borrowings (345,183) (608,278)
    Non-current borrowings (7,437) (28,122)
    Net cash / (debt) 4,006,793 3,912,019
         

    Operating working capital days

    Operating working capital is the difference between the main operating components of current assets and current liabilities. Operating working capital is a measure of a company’s operational efficiency, and short-term financial health.

    Operating working capital days is calculated in the following manner:

    Operating working capital days = [(Inventories + Trade receivables – Trade payables – Customer advances) / Annualized quarterly sales ] x 365.

    Operating working capital days is a non-IFRS alternative performance measure.

    (all amounts in thousands of U.S. dollars) At March 31,
      2025 2024
    Inventories 3,519,237 3,911,719
    Trade receivables 1,842,313 2,303,293
    Customer advances (228,086) (239,342)
    Trade payables (831,716) (1,041,434)
    Operating working capital 4,301,748 4,934,236
    Annualized quarterly sales 11,688,848 13,766,176
    Operating working capital days 134 131
         

    Giovanni Sardagna
    Tenaris
    1-888-300-5432
    www.tenaris.com

    The MIL Network –

  • MIL-OSI Economics: Microsoft Cloud and AI strength drives third quarter results

    Source: Microsoft

    Headline: Microsoft Cloud and AI strength drives third quarter results

    Microsoft Cloud and AI Strength Drives Third Quarter Results

    REDMOND, Wash. — April 30, 2025 — Microsoft Corp. today announced the following results for the quarter ended March 31, 2025, as compared to the corresponding period of last fiscal year:

    ·        Revenue was $70.1 billion and increased 13% (up 15% in constant currency)

    ·        Operating income was $32.0 billion and increased 16% (up 19% in constant currency)

    ·        Net income was $25.8 billion and increased 18% (up 19% in constant currency)

    ·        Diluted earnings per share was $3.46 and increased 18% (up 19% in constant currency)

    “Cloud and AI are the essential inputs for every business to expand output, reduce costs, and accelerate growth,” said Satya Nadella, chairman and chief executive officer of Microsoft. “From AI infra and platforms to apps, we are innovating across the stack to deliver for our customers.”

    “We delivered a strong quarter with Microsoft Cloud revenue of $42.4 billion, up 20% (up 22% in constant currency) year-over-year driven by continued demand for our differentiated offerings,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

    Business Highlights

    Revenue in Productivity and Business Processes was $29.9 billion and increased 10% (up 13% in constant currency), with the following business highlights:

    ·        Microsoft 365 Commercial products and cloud services revenue increased 11% (up 14% in constant currency) driven by Microsoft 365 Commercial cloud revenue growth of 12% (up 15% in constant currency)

    ·        Microsoft 365 Consumer products and cloud services revenue increased 10% (up 12% in constant currency) driven by Microsoft 365 Consumer cloud revenue growth of 10% (up 12% in constant currency)

    ·        LinkedIn revenue increased 7% (up 8% in constant currency)

    ·        Dynamics products and cloud services revenue increased 11% (up 13% in constant currency) driven by Dynamics 365 revenue growth of 16% (up 18% in constant currency)

    Revenue in Intelligent Cloud was $26.8 billion and increased 21% (up 22% in constant currency), with the following business highlights:

    ·        Server products and cloud services revenue increased 22% (up 24% in constant currency) driven by Azure and other cloud services revenue growth of 33% (up 35% in constant currency)

    Revenue in More Personal Computing was $13.4 billion and increased 6% (up 7% in constant currency), with the following business highlights:

    ·        Windows OEM and Devices revenue increased 3%

    ·        Xbox content and services revenue increased 8% (up 9% in constant currency)

    ·        Search and news advertising revenue excluding traffic acquisition costs increased 21% (up 23% in constant currency)

    Microsoft returned $9.7 billion to shareholders in the form of dividends and share repurchases in the third quarter of fiscal year 2025.

    Business Outlook

    Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

    Quarterly Highlights, Product Releases, and Enhancements 

    Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

    Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

    Environmental, Social, and Governance (ESG)

    To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency. 

    Webcast Details

    Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Jonathan Neilson, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on April 30, 2026.

    Constant Currency

    Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

    Financial Performance Constant Currency Reconciliation

     

    Three Months Ended March 31,

     ($ in millions, except per share amounts)

    Revenue

    Operating Income

    Net Income

    Diluted Earnings per Share

    2024 As Reported (GAAP)

    $61,858

    $27,581

    $21,939

    $2.94

    2025 As Reported (GAAP)

    $70,066

    $32,000

    $25,824

    $3.46

    Percentage Change Y/Y (GAAP)

    13%

    16%

    18%

    18%

    Constant Currency Impact

    $(1,059)

    $(703)

    $(392)

    $(0.05)

    Percentage Change Y/Y Constant Currency

    15%

    19%

    19%

    19%

     

    Segment Revenue Constant Currency Reconciliation

     

    Three Months Ended March 31,

     ($ in millions)

    Productivity and Business Processes

    Intelligent Cloud

    More Personal Computing

    2024 As Reported (GAAP)

    $27,113

    $22,141

    $12,604

    2025 As Reported (GAAP)

    $29,944

    $26,751

    $13,371

    Percentage Change Y/Y (GAAP)

    10%

    21%

    6%

    Constant Currency Impact

    $(626)

    $(308)

    $(125)

    Percentage Change Y/Y Constant Currency

    13%

    22%

    7%

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

    Selected Product and Service Revenue Constant Currency Reconciliation           

     

    Three Months Ended March 31, 2025

    Percentage Change Y/Y (GAAP)

    Constant Currency Impact

    Percentage Change Y/Y Constant Currency

    Microsoft Cloud

    20%

    2%

    22%

    Microsoft 365 Commercial products and cloud services

    11%

    3%

    14%

    Microsoft 365 Commercial cloud

    12%

    3%

    15%

    Microsoft 365 Consumer products and cloud services

    10%

    2%

    12%

    Microsoft 365 Consumer cloud

    10%

    2%

    12%

    LinkedIn

    7%

    1%

    8%

    Dynamics products and cloud services

    11%

    2%

    13%

    Dynamics 365

    16%

    2%

    18%

    Server products and cloud services

    22%

    2%

    24%

    Azure and other cloud services

    33%

    2%

    35%

    Windows OEM and Devices

    3%

    0%

    3%

    Xbox content and services

    8%

    1%

    9%

    Search and news advertising excluding traffic acquisition costs

    21%

    2%

    23%

     

    About Microsoft

    Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

    Forward-Looking Statements

    Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

    ·        intense competition in all of our markets that may adversely affect our results of operations;

    ·        focus on cloud-based and AI services presenting execution and competitive risks;

    ·        significant investments in products and services that may not achieve expected returns;

    ·        acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

    ·        impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

    ·        cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

    ·        disclosure and misuse of personal data that could cause liability and harm to our reputation;

    ·        the possibility that we may not be able to protect information stored in our products and services from use by others;

    ·        abuse of our advertising, professional, marketplace, or gaming platforms that may harm our reputation or user engagement;

    ·        products and services, how they are used by customers, and how third-party products and services interact with them, presenting security, privacy, and execution risks;

    ·        issues about the use of AI in our offerings that may result in reputational or competitive harm, or legal liability;

    ·        excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

    ·        supply or quality problems;

    ·        government enforcement under competition laws and new market regulation may limit how we design and market our products;

    ·        potential consequences of trade and anti-corruption laws;

    ·        potential consequences of existing and increasing legal and regulatory requirements;

    ·        laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

    ·        claims against us that may result in adverse outcomes in legal disputes;

    ·        uncertainties relating to our business with government customers;

    ·        additional tax liabilities;

    ·        sustainability regulations and expectations that may expose us to increased costs and legal and reputational risk;

    ·        an inability to protect and utilize our intellectual property may harm our business and operating results;

    ·        claims that Microsoft has infringed the intellectual property rights of others;

    ·        damage to our reputation or our brands that may harm our business and results of operations;

    ·        adverse economic or market conditions that may harm our business;

    ·        catastrophic events or geo-political conditions, such as the COVID-19 pandemic, that may disrupt our business;

    ·        exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange; and

    ·        the dependence of our business on our ability to attract and retain talented employees.

    For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

    All information in this release is as of March 31, 2025. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

    For more information, press only:

    Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

    For more information, financial analysts and investors only:

    Jonathan Neilson, Vice President, Investor Relations, (425) 706-4400

    Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.


     

    MICROSOFT CORPORATION

    INCOME STATEMENTS

    (In millions, except per share amounts) (Unaudited)

    Three Months Ended

     March 31,

    Nine Months Ended

     March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Revenue:

    Product

     $15,319

     $17,080

     $46,810

     $51,556

    Service and other

    54,747

     

    44,778

     

    158,473

     

    128,839

    Total revenue

    70,066

     

    61,858

     

    205,283

     

    180,395

    Cost of revenue:

    Product

    3,037

    4,339

    10,187

    13,834

    Service and other

    18,882

     

    14,166

     

    53,630

     

    40,596

    Total cost of revenue

    21,919

     

    18,505

     

    63,817

     

    54,430

    Gross margin

    48,147

    43,353

    141,466

    125,965

    Research and development

    8,198

    7,653

    23,659

    21,454

    Sales and marketing

    6,212

    6,207

    18,369

    17,640

    General and administrative

    1,737

    1,912

    5,233

    5,363

    Operating income

    32,000

     

    27,581

     

    94,205

     

    81,508

    Other expense, net

    (623)

     

    (854)

     

    (3,194)

     

    (971)

    Income before income taxes

    31,377

    26,727

    91,011

    80,537

    Provision for income taxes

    5,553

     

    4,788

     

    16,412

     

    14,437

    Net income

     $25,824

     

     $21,939

     

     $74,599

     

     $66,100

    Earnings per share:

    Basic

     $3.47

     $2.95

     $10.03

     $8.90

    Diluted

     $3.46

     $2.94

     $9.99

     $8.85

    Weighted average shares outstanding:

    Basic

    7,434

    7,431

    7,434

    7,431

    Diluted

    7,461

     

    7,472

     

    7,466

     

    7,467

     


     

    COMPREHENSIVE INCOME STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     March 31,

    Nine Months Ended

     March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Net income

     $25,824

     

     $21,939

     

     $74,599

     

     $66,100

    Other comprehensive income (loss), net of tax:

    Net change related to derivatives

    (20)

    10

    4

    28

    Net change related to investments

    450

    (202)

    1,130

    869

    Translation adjustments and other

    353

     

    (294)

     

    (377)

     

    11

    Other comprehensive income (loss)

    783

     

    (486)

     

    757

     

    908

    Comprehensive income

     $26,607

     

     $21,453

     

     $75,356

     

     $67,008

     


     

    BALANCE SHEETS

    (In millions) (Unaudited)

     

    March 31,

    2025

    June 30,

     2024

    Assets

    Current assets:

    Cash and cash equivalents

     $28,828

     $18,315

    Short-term investments

    50,790

    57,228

    Total cash, cash equivalents, and short-term investments

    79,618

    75,543

    Accounts receivable, net of allowance for doubtful accounts of $695 and $830

    51,700

    56,924

    Inventories

    848

    1,246

    Other current assets

    24,478

    26,021

    Total current assets

    156,644

    159,734

    Property and equipment, net of accumulated depreciation of $87,074 and $76,421

    183,939

    135,591

    Operating lease right-of-use assets

    24,475

    18,961

    Equity and other investments

    16,035

    14,600

    Goodwill

    119,329

    119,220

    Intangible assets, net

    23,968

    27,597

    Other long-term assets

    38,234

    36,460

    Total assets

     $562,624

     $512,163

    Liabilities and stockholders’ equity

    Current liabilities:

    Accounts payable

     $26,250

     $21,996

    Short-term debt

    0

    6,693

    Current portion of long-term debt

    2,999

    2,249

    Accrued compensation

    10,579

    12,564

    Short-term income taxes

    6,805

    5,017

    Short-term unearned revenue

    44,636

    57,582

    Other current liabilities

    22,937

    19,185

    Total current liabilities

    114,206

    125,286

    Long-term debt

    39,882

    42,688

    Long-term income taxes

    25,061

    27,931

    Long-term unearned revenue

    2,840

    2,602

    Deferred income taxes

    2,522

    2,618

    Operating lease liabilities

    17,686

    15,497

    Other long-term liabilities

    38,536

    27,064

    Total liabilities

    240,733

    243,686

    Commitments and contingencies

    Stockholders’ equity:

    Common stock and paid-in capital – shares authorized 24,000; outstanding 7,434 and 7,434

    106,965

    100,923

    Retained earnings

    219,759

    173,144

    Accumulated other comprehensive loss

    (4,833)

    (5,590)

    Total stockholders’ equity

    321,891

    268,477

    Total liabilities and stockholders’ equity

     $562,624

     $512,163

     


     

    CASH FLOWS STATEMENTS

    (In millions) (Unaudited)

    Three Months Ended

     March 31,

    Nine Months Ended

     March 31,

     

    2025

     

    2024

     

    2025

     

    2024

    Operations

    Net income

     $25,824

     $21,939

     $74,599

     $66,100

    Adjustments to reconcile net income to net cash from operations:

    Depreciation, amortization, and other

    8,740

    6,027

    22,950

    15,907

    Stock-based compensation expense

    2,980

    2,703

    8,901

    8,038

    Net recognized losses (gains) on investments and derivatives

    (298)

    49

    553

    261

    Deferred income taxes

    (2,244)

    (1,323)

    (4,835)

    (3,593)

    Changes in operating assets and liabilities:

    Accounts receivable

    (2,461)

    (2,028)

    5,598

    6,055

    Inventories

    52

    260

    390

    1,229

    Other current assets

    1,076

    951

    642

    880

    Other long-term assets

    (518)

    (2,137)

    (3,368)

    (5,577)

    Accounts payable

    1,179

    648

    1,221

    (659)

    Unearned revenue

    (1,032)

    (645)

    (12,923)

    (10,309)

    Income taxes

    1,298

    2,622

    (1,081)

    2,493

    Other current liabilities

    2,839

    2,803

    576

    215

    Other long-term liabilities

    (391)

     

    48

     

    292

     

    313

    Net cash from operations

    37,044

     

    31,917

     

    93,515

     

    81,353

    Financing

    Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net

    0

    (3,810)

    (5,746)

    6,392

    Proceeds from issuance of debt

    0

    6,352

    0

    24,198

    Repayments of debt

    (2,250)

    (11,589)

    (3,216)

    (16,005)

    Common stock issued

    546

    522

    1,508

    1,468

    Common stock repurchased

    (4,781)

    (4,213)

    (13,874)

    (13,044)

    Common stock cash dividends paid

    (6,169)

    (5,572)

    (17,913)

    (16,197)

    Other, net

    (382)

     

    (498)

     

    (1,614)

     

    (1,006)

    Net cash used in financing

    (13,036)

     

    (18,808)

     

    (40,855)

     

    (14,194)

    Investing

    Additions to property and equipment

    (16,745)

    (10,952)

    (47,472)

    (30,604)

    Acquisition of companies, net of cash acquired and divestitures, and purchases of intangible and other assets

    (981)

    (1,575)

    (4,235)

    (67,790)

    Purchases of investments

    (4,474)

    (2,183)

    (8,144)

    (14,901)

    Maturities of investments

    6,721

    3,350

    11,461

    23,218

    Sales of investments

    2,161

    1,941

    6,688

    8,871

    Other, net

    604

    (1,281)

    (325)

    (916)

    Net cash used in investing

    (12,714)

     

    (10,700)

     

    (42,027)

     

    (82,122)

    Effect of foreign exchange rates on cash and cash equivalents

    52

     

    (80)

     

    (120)

     

    (107)

    Net change in cash and cash equivalents

    11,346

    2,329

    10,513

    (15,070)

    Cash and cash equivalents, beginning of period

    17,482

     

    17,305

     

    18,315

     

    34,704

    Cash and cash equivalents, end of period

     $28,828

     

     $19,634

     

     $28,828

     

     $19,634

     


     

    SEGMENT REVENUE AND OPERATING INCOME

    (In millions) (Unaudited)

     

    Three Months Ended

     March 31,

     

    Nine Months Ended

     March 31,

     

     

     

    2025

     

    2024

     

    2025

     

    2024

    Revenue

     

     

     

     

     

     

     

    Productivity and Business Processes

     $29,944

     

     $27,113

     

     $87,698

     

     $78,193

    Intelligent Cloud

    26,751

     

    22,141

     

    76,387

     

    63,679

    More Personal Computing

    13,371

     

    12,604

     

    41,198

     

    38,523

    Total

     $70,066

     

     $61,858

     

     $205,283

     

     $180,395

    Operating Income

     

     

     

     

     

     

     

    Productivity and Business Processes

     $17,379

     

     $15,143

     

     $50,780

     

     $43,955

    Intelligent Cloud

    11,095

     

    9,515

     

    32,449

     

    27,978

    More Personal Computing

    3,526

     

    2,923

     

    10,976

     

    9,575

    Total

     $32,000

     

     $27,581

     

     $94,205

     

     $81,508

    We have recast certain prior period amounts to conform to the way we internally manage and monitor our business.

     

    MIL OSI Economics –

  • MIL-OSI: National Fuel Reports Second Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSVILLE, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — National Fuel Gas Company (“National Fuel” or the “Company”) (NYSE:NFG) today announced consolidated results for the second quarter of its 2025 fiscal year.

    FISCAL 2025 SECOND QUARTER SUMMARY

    • GAAP net income of $216 million, or $2.37 per share, an increase of 32% per share compared to the prior year.
    • Adjusted operating results of $218 million, or $2.39 per share, an increase of 34% per share compared to the prior year. See non-GAAP reconciliation on page 2.
    • Seneca produced a record 105.5 Bcf of natural gas, an increase of 3% from the prior year and 8% sequentially, largely due to strong results from pads recently turned in line in the Eastern Development Area (“EDA”).
    • Utility segment net income of $63.5 million, or $0.70 per share, an increase of 44% per share compared to the prior year, primarily as a result of the New York jurisdiction’s 2024 rate settlement, which led to its first base rate increase since 2017.
    • Pipeline & Storage segment net income of $31.7 million, or $0.35 per share, an increase of 5% per share compared to the prior year. In addition, Empire Pipeline reached an agreement with its customers to amend its existing rate settlement, which was approved by the FERC on March 17, 2025, with new rates effective November 1, 2025.
    • The Company is increasing its guidance for fiscal 2025 adjusted earnings per share to a range of $6.75 to $7.05.

    MANAGEMENT COMMENTS

    David P. Bauer, President and Chief Executive Officer of National Fuel Gas Company, stated: “During our second quarter, National Fuel built upon its positive momentum which, along with the tailwind of higher natural gas price realizations, drove a 32% increase in earnings per share over the prior year.

    “Our integrated Appalachian natural gas development program, focused on the highly prolific EDA, continues to deliver strong operational results and improving capital efficiency. Seneca’s recent well results exhibited the highest productivity we’ve seen to date, giving us further confidence in our deep, high-quality well inventory, and allowing us to increase our production guidance for fiscal 2025. On the regulated side of the business, we saw significant earnings growth during the quarter, driven by the ongoing impact of positive rate case outcomes that balance the continued investment in modernizing our infrastructure with the goal of maintaining affordable rates for our customers.

    “National Fuel’s integrated natural gas business, track record of strong operational execution, and consistent approach to managing risk, collectively position us well to navigate an uncertain global economic backdrop. As such, we remain confident in our ability to provide strong returns, achieve our long-term growth targets, and continue to deliver shareholder value.”

    RECONCILIATION OF GAAP EARNINGS TO ADJUSTED OPERATING RESULTS

                   
      Three Months Ended March 31,
      (Thousands)   (Per Share)
        2025       2024       2025       2024  
    Reported GAAP Earnings $ 216,358     $ 166,272     $ 2.37     $ 1.80  
    Items impacting comparability:              
    Premiums paid on early redemption of debt (E&P / Midstream)   2,385       —       0.03       —  
    Tax impact of premiums paid on early redemption of debt   (642 )     —       (0.01 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   335       (536 )     0.00       0.00  
    Tax impact of unrealized (gain) loss on derivative asset   (90 )     147       0.00       0.00  
    Unrealized (gain) loss on other investments (Corporate / All Other)   (17 )     (769 )     0.00       (0.01 )
    Tax impact of unrealized (gain) loss on other investments   4       162       0.00       0.00  
    Adjusted Operating Results $ 218,333     $ 165,276     $ 2.39     $ 1.79  

    FISCAL 2025 GUIDANCE UPDATE

    National Fuel is increasing its guidance for fiscal 2025 adjusted earnings per share, which is now expected to be within a range of $6.75 to $7.05, an increase of $0.15 at the midpoint of the Company’s prior guidance range. This updated range incorporates our second quarter results as well as higher expected production and lower unit costs in the Exploration and Production segment for the remainder of the fiscal year.

    The Company is assuming NYMEX natural gas prices will average $3.50 per MMBtu for the remaining six months of fiscal 2025 (no change from previous guidance), which approximates the current NYMEX forward curve at this time. Given the continued volatility in NYMEX natural gas prices, the Company is providing the following sensitivities to its adjusted operating results guidance range:

    NYMEX Assumption
    Remaining 6 months
    ($/MMBtu)    		 Fiscal 2025
    Adjusted Earnings
    Per Share Sensitivities
    $3.00 $6.50 – $6.80
    $3.50 $6.75 – $7.05
    $4.00 $7.05 – $7.35

    The Company’s other fiscal 2025 guidance assumptions remain largely unchanged as detailed in the table on page 7.

    FINANCING ACTIVITIES UPDATE

    In February 2025, the Company issued $1 billion of new five- and ten-year notes (split in two equal tranches) to refinance the early redemption of $950 million of notes that were scheduled to mature in July 2025 and January 2026. In addition, the Company placed $50 million (plus interest) in trust for the benefit of holders of long-term debt issued under the Company’s 1974 Indenture and scheduled to mature in June 2025. Placing these funds in trust discharged the 1974 Indenture, relieving the Company from its obligations to comply with the indenture’s covenants. In connection with these transactions, the Company recognized an after-tax loss of $1.7 million, which is presented as an item impacting comparability for the quarter.

    DISCUSSION OF SECOND QUARTER RESULTS BY SEGMENT

    The following earnings discussion of each operating segment for the quarter ended March 31, 2025 is summarized in a tabular form on pages 8 and 9 of this report (earnings drivers for the six months ended March 31, 2025 are summarized on pages 10 and 11). It may be helpful to refer to those tables while reviewing this discussion.

    Note that management defines adjusted operating results as reported GAAP earnings adjusted for items impacting comparability, and adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability.

    Upstream Business

    Exploration and Production Segment

    The Exploration and Production segment operations are carried out by Seneca Resources Company, LLC (“Seneca”). Seneca explores for, develops and produces primarily natural gas reserves in Pennsylvania.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 97,828     $ 62,065     $ 35,763  
                           
    Premiums paid on early redemption of debt, net of tax   1,045       —       1,045  
    Unrealized (gain) loss on derivative asset (2022 CA asset sale), net of tax   245       (389 )     634  
    Adjusted Operating Results $ 99,118     $ 61,676     $ 37,442  
               
    Adjusted EBITDA $ 214,350     $ 172,068     $ 42,282  
                           

    Seneca’s second quarter GAAP earnings increased $35.8 million versus the prior year. GAAP earnings included a $1.0 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Seneca’s share of premiums paid by the Company associated with its long-term debt redemptions.

    Excluding items impacting comparability, Seneca’s adjusted operating results in the second quarter increased $37.4 million primarily due to higher realized natural gas prices and natural gas production, as well as lower per unit operating expenses.

    During the second quarter, Seneca produced 105.5 Bcf of natural gas, an increase of 2.6 Bcf, or 3%, from the prior year, and 7.8 Bcf, or 8%, higher compared to the fiscal 2025 first quarter. Two highly prolific pads turned in line this year in the EDA (Tioga Utica) were the main drivers behind these increases in production.

    Seneca’s weighted average realized natural gas price, after the impact of hedging and transportation costs, was $2.94 per Mcf, an increase of $0.38 per Mcf from the prior year. This increase was primarily due to higher NYMEX prices and higher spot prices at local sales points in Pennsylvania.

      Three Months Ended
      March 31,
    (Cost per Mcf)   2025       2024     Variance
    Lease Operating and Transportation Expense (“LOE”) $ 0.67     $ 0.68     $ (0.01 )
    General and Administrative Expense (“G&A”) $ 0.18     $ 0.17     $ 0.01  
    Taxes and Other $ 0.07     $ 0.06     $ 0.01  
    Total Cash Operating Costs $ 0.92     $ 0.91     $ 0.01  
    Depreciation, Depletion and Amortization Expense (“DD&A”) $ 0.61     $ 0.71     $ (0.10 )
    Total Operating Costs $ 1.53     $ 1.62     $ (0.09 )
                           

    On a per unit basis, the second quarter total cash operating costs were up slightly compared to the prior year as other taxes increased as a result of a higher Impact Fee in Pennsylvania due to the increase in NYMEX natural gas prices. LOE included $59 million ($0.56 per Mcf), or 84% of total LOE, for gathering and compression service fees paid to the Company’s Gathering segment to connect Seneca’s production to sales points along interstate pipelines. DD&A for the quarter was $0.61 per Mcf, a decrease of $0.10 per Mcf from the prior year, largely due to ceiling test impairments recorded in prior quarters that lowered Seneca’s full cost pool depletable base.

    Midstream Businesses

    Pipeline and Storage Segment

    The Pipeline and Storage segment’s operations are carried out by National Fuel Gas Supply Corporation (“Supply Corporation”) and Empire Pipeline, Inc. (“Empire”). The Pipeline and Storage segment provides natural gas transportation and storage services to affiliated and non-affiliated companies through an integrated system of pipelines and underground natural gas storage fields in western New York and Pennsylvania.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 31,707     $ 30,737     $ 970  
               
    Adjusted EBITDA $ 70,169     $ 70,033     $ 136  
                           

    The Pipeline and Storage segment’s second quarter GAAP earnings increased $1.0 million versus the prior year primarily due to higher operating revenues. The increase in operating revenues of $1.6 million, or 1%, was primarily attributable to an increase in Supply Corporation’s transportation and storage rates effective February 1, 2024, in accordance with its rate settlement, which was approved in fiscal 2024.

    Empire Rate Case Update

    On March 17, 2025, FERC approved an amendment to Empire’s 2019 rate case settlement, which provides for modest unit rate reductions for Empire’s transportation services. Based on current contracts, this settlement amendment is estimated to decrease Empire’s revenues on a yearly basis by approximately $0.5 million with new rates effective November 1, 2025. Under the amendment, Empire may not file a new rate case before April 30, 2027, and is required to file a rate case by May 31, 2031.

    Gathering Segment

    The Gathering segment’s operations are carried out by National Fuel Gas Midstream Company, LLC’s limited liability companies. The Gathering segment constructs, owns and operates natural gas gathering pipelines and compression facilities in the Appalachian region, which delivers Seneca and other non-affiliated Appalachian production to the interstate pipeline system.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 26,342     $ 28,706     $ (2,364 )
    Premiums paid on early redemption of debt, net of tax   698       —       698  
    Adjusted Operating Results $ 27,040     $ 28,706     $ (1,666 )
               
    Adjusted EBITDA $ 52,748     $ 53,103     $ (355 )
                           

    The Gathering segment’s second quarter GAAP earnings decreased $2.4 million versus the prior year as higher operating revenues were more than offset by higher O&M and DD&A expense. GAAP earnings also included a $0.7 million after-tax loss recognized during the quarter on the early redemption of long-term debt for Gathering’s share of premiums paid by the Company associated with its long-term debt redemptions.

    Operating revenues increased $1.0 million, or 2%, primarily due to an increase in throughput from Seneca’s new wells in Tioga County. While O&M expense increased $1.5 million, the per unit rate of $0.09 per Mcf remained unchanged. DD&A expense increased $1.2 million primarily due to higher average depreciable plant in service compared to the prior year.

    Downstream Business

    Utility Segment

    The Utility segment operations are carried out by National Fuel Gas Distribution Corporation (“Distribution Corporation”), which sells or transports natural gas to customers located in western New York and northwestern Pennsylvania.

      Three Months Ended
      March 31,
    (in thousands)   2025       2024     Variance
    GAAP Earnings $ 63,544     $ 44,739     $ 18,805  
               
    Adjusted EBITDA $ 95,270     $ 78,326     $ 16,944  
                           

    The Utility segment’s second quarter GAAP earnings increased $18.8 million, or 42%, primarily as a result of the implementation of the recently approved rate case settlement in the Utility’s New York jurisdiction, which became effective October 1, 2024.

    For the quarter, customer margin (operating revenues less purchased gas sold) increased $22.2 million, primarily due to the New York rate case settlement. Other income increased $10.8 million, largely due to the New York rate settlement, which required the recognition of non-service pension and post-retirement benefit income and a corresponding reduction in new base rates, resulting in no effect on net income.

    O&M expense increased by $4.2 million, primarily driven by higher personnel costs, partially offset by a reduction related to amortizations of certain regulatory assets as a result of the New York rate settlement. Further, interest expense increased $2.4 million primarily due to a higher average amount of net borrowings.

    Corporate and All Other

    The Company’s operations that are included in Corporate and All Other generated a combined net loss of $3.1 million in the current year second quarter, compared to combined earnings of less than $0.1 million in the prior year. The reduction in earnings during the second quarter was primarily driven by higher interest expense due to a higher average amount of net borrowings. A decrease in investment income on marketable securities and corporate-owned life insurance policies also contributed to the earnings reduction.

    EARNINGS TELECONFERENCE

    A conference call to discuss the results will be held on Thursday, May 1, 2025, at 9 a.m. ET. All participants must pre-register to join this conference using the Participant Registration link. A webcast link to the conference call will be provided under the Events Calendar on the NFG Investor Relations website at investor.nationalfuelgas.com. A replay will be available following the call through the end of the day, Thursday, May 8, 2025. To access the replay, dial 1-866-813-9403 and provide Access Code 458634.

    National Fuel is an integrated energy company reporting financial results for four operating segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. Additional information about National Fuel is available at www.nationalfuel.com.

    Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may” and similar expressions, and statements which are other than statements of historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections contained herein are expressed in good faith and are believed to have a reasonable basis, but there can be no assurance that such expectations, beliefs or projections will result or be achieved or accomplished. In addition to other factors, the following are important factors that could cause actual results to differ materially from those discussed in the forward-looking statements: changes in laws, regulations or judicial interpretations to which the Company is subject, including those involving derivatives, taxes, safety, employment, climate change, other environmental matters, real property, and exploration and production activities such as hydraulic fracturing; governmental/regulatory actions, initiatives and proceedings, including those involving rate cases (which address, among other things, target rates of return, rate design, retained natural gas and system modernization), environmental/safety requirements, affiliate relationships, industry structure, and franchise renewal; changes in economic conditions, including the imposition of additional tariffs on U.S. imports and related retaliatory tariffs, inflationary pressures, supply chain issues, liquidity challenges, and global, national or regional recessions, and their effect on the demand for, and customers’ ability to pay for, the Company’s products and services; the Company’s ability to estimate accurately the time and resources necessary to meet emissions targets; governmental/regulatory actions and/or market pressures to reduce or eliminate reliance on natural gas; impairments under the SEC’s full cost ceiling test for natural gas reserves; changes in the price of natural gas; the creditworthiness or performance of the Company’s key suppliers, customers and counterparties; financial and economic conditions, including the availability of credit, and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other investments, including any downgrades in the Company’s credit ratings and changes in interest rates and other capital market conditions; changes in price differentials between similar quantities of natural gas sold at different geographic locations, and the effect of such changes on commodity production, revenues and demand for pipeline transportation capacity to or from such locations; the impact of information technology disruptions, cybersecurity or data security breaches, including the impact of issues that may arise from the use of artificial intelligence technologies; factors affecting the Company’s ability to successfully identify, drill for and produce economically viable natural gas reserves, including among others geology, lease availability and costs, title disputes, weather conditions, water availability and disposal or recycling opportunities of used water, shortages, delays or unavailability of equipment and services required in drilling operations, insufficient gathering, processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and regulations; the Company’s ability to complete strategic transactions; increased costs or delays or changes in plans with respect to Company projects or related projects of other companies, as well as difficulties or delays in obtaining necessary governmental approvals, permits or orders or in obtaining the cooperation of interconnecting facility operators; increasing health care costs and the resulting effect on health insurance premiums and on the obligation to provide other post-retirement benefits; other changes in price differentials between similar quantities of natural gas having different quality, heating value, hydrocarbon mix or delivery date; the cost and effects of legal and administrative claims against the Company or activist shareholder campaigns to effect changes at the Company; negotiations with the collective bargaining units representing the Company’s workforce, including potential work stoppages during negotiations; uncertainty of natural gas reserve estimates; significant differences between the Company’s projected and actual production levels for natural gas; changes in demographic patterns and weather conditions (including those related to climate change); changes in the availability, price or accounting treatment of derivative financial instruments; changes in laws, actuarial assumptions, the interest rate environment and the return on plan/trust assets related to the Company’s pension and other post-retirement benefits, which can affect future funding obligations and costs and plan liabilities; economic disruptions or uninsured losses resulting from major accidents, fires, severe weather, natural disasters, terrorist activities or acts of war, as well as economic and operational disruptions due to third-party outages; significant differences between the Company’s projected and actual capital expenditures and operating expenses; or increasing costs of insurance, changes in coverage and the ability to obtain insurance. The Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date thereof.

    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    GUIDANCE SUMMARY
     

    As discussed on page 2, the Company is revising its adjusted earnings per share guidance for fiscal 2025. Additional details on the Company’s forecast assumptions and business segment guidance are outlined in the table below.

    The revised adjusted earnings per share guidance range excludes certain items that impacted the comparability of adjusted operating results during the six months ended March 31, 2025, including: (1) the after tax impairment of assets, which reduced earnings by $1.14 per share; (2) after-tax premiums paid on early redemptions of debt, which reduced earnings by $0.02 per share; (3) after-tax unrealized losses on a derivative asset, which reduced earnings by $0.01 per share; and (4) after-tax unrealized losses on other investments, which reduced earnings by $0.02 per share. While the Company expects to record certain adjustments to unrealized gain or loss on a derivative asset and unrealized gain or loss on investments during the remaining six months ending September 30, 2025, the amounts of these and other potential adjustments are not reasonably determinable at this time. As such, the Company is unable to provide earnings guidance other than on a non-GAAP basis.

      Previous FY 2025 Guidance   Updated FY 2025 Guidance
           
    Consolidated Adjusted Earnings per Share $6.50 to $7.00   $6.75 to $7.05
    Consolidated Effective Tax Rate ~ 25%   ~ 25%
           
    Capital Expenditures (Millions)      
    Exploration and Production $495 – $515   $495 – $515
    Pipeline and Storage $130 – $150   $130 – $150
    Gathering $95 – $110   $95 – $110
    Utility $165 – $185   $165 – $185
    Consolidated Capital Expenditures $885 – $960   $885 – $960
           
    Exploration and Production Segment Guidance      
           
    Commodity Price Assumptions (remaining six months)      
    NYMEX natural gas price $3.50 /MMBtu   $3.50 /MMBtu
    Appalachian basin spot price $2.90 /MMBtu   $2.60 /MMBtu
    Realized natural gas prices, after hedging ($/Mcf) $2.77 – $2.81   $2.72 – $2.76
           
    Production (Bcf) 410 to 425   415 to 425
           
    E&P Operating Costs($/Mcf)      
    LOE $0.68 – $0.70   $0.68 – $0.69
    G&A $0.18 – $0.19   $0.18 – $0.19
    DD&A $0.63 – $0.67   $0.63 – $0.65
           
    Other Business Segment Guidance(Millions)      
    Gathering Segment Revenues $250 – $260   $250 – $260
    Pipeline and Storage Segment Revenues $415 – $435   $415 – $435
           
    Utility Segment Guidance(Millions)      
    Customer Margin* $445 – $465   $445 – $465
    O&M Expense $240 – $250   $240 – $245
    Non-Service Pension & OPEB Income $23 – $27   $23 – $27
           
    * Customer Margin is defined as Operating Revenues less Purchased Gas Expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    QUARTER ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    Second quarter 2024 GAAP earnings $ 62,065     $ 30,737     $ 28,706     $ 44,739     $ 25     $ 166,272  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset   (536 )                     (536 )
    Tax impact of unrealized (gain) loss on derivative asset   147                       147  
    Unrealized (gain) loss on other investments                   (769 )     (769 )
    Tax impact of unrealized (gain) loss on other investments                   162       162  
    Second quarter 2024 adjusted operating results   61,676       30,737       28,706       44,739       (582 )     165,276  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   5,322                       5,322  
    Higher (lower) realized natural gas prices, after hedging   31,956                       31,956  
    Midstream Revenues                      
    Higher (lower) operating revenues       1,227       819               2,046  
    Downstream Margins***                      
    Impact of usage and weather               3,011           3,011  
    Impact of new rates in New York               14,577           14,577  
    Higher (lower) other operating revenues               (924 )         (924 )
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   (1,196 )                     (1,196 )
    Lower (higher) operating expenses   (1,855 )     (1,248 )     (1,168 )     (3,330 )         (7,601 )
    Lower (higher) property, franchise and other taxes   (948 )                     (948 )
    Lower (higher) depreciation / depletion   6,973       745       (966 )     (685 )         6,067  
    Other Income (Expense)                      
    Higher (lower) other income               8,545       612       9,157  
    (Higher) lower interest expense       331       (891 )     (1,895 )     (2,902 )     (5,357 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (2,331 )     241       463       (545 )     (159 )     (2,331 )
    All other / rounding   (479 )     (326 )     77       51       (45 )     (722 )
    Second quarter 2025 adjusted operating results   99,118       31,707       27,040       63,544       (3,076 )     218,333  
    Items impacting comparability:                      
    Premiums paid on early redemption of debt   (1,430 )         (955 )             (2,385 )
    Tax impact of premiums paid on early redemption of debt   385           257               642  
    Unrealized gain (loss) on derivative asset   (335 )                     (335 )
    Tax impact of unrealized gain (loss) on derivative asset   90                       90  
    Unrealized gain (loss) on other investments                   17       17  
    Tax impact of unrealized gain (loss) on other investments                   (4 )     (4 )
    Second quarter 2025 GAAP earnings $ 97,828     $ 31,707     $ 26,342     $ 63,544     $ (3,063 )   $ 216,358  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    QUARTER ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
      Production   Storage   Gathering   Utility   All Other   Consolidated*
                           
    Second quarter 2024 GAAP earnings per share $ 0.67     $ 0.33     $ 0.31     $ 0.48     $ 0.01     $ 1.80  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset, net of tax   —                       —  
    Unrealized (gain) loss on other investments, net of tax                   (0.01 )     (0.01 )
    Second quarter 2024 adjusted operating results per share   0.67       0.33       0.31       0.48       —       1.79  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   0.06                       0.06  
    Higher (lower) realized natural gas prices, after hedging   0.35                       0.35  
    Midstream Revenues                      
    Higher (lower) operating revenues       0.01       0.01               0.02  
    Downstream Margins***                      
    Impact of usage and weather               0.03           0.03  
    Impact of new rates in New York               0.16           0.16  
    Higher (lower) other operating revenues               (0.01 )         (0.01 )
    Operating Expenses                      
    Lower (higher) lease operating and transportation expenses   (0.01 )                     (0.01 )
    Lower (higher) operating expenses   (0.02 )     (0.01 )     (0.01 )     (0.04 )         (0.08 )
    Lower (higher) property, franchise and other taxes   (0.01 )                     (0.01 )
    Lower (higher) depreciation / depletion   0.09       0.01       (0.01 )     (0.01 )         0.08  
    Other Income (Expense)                      
    Higher (lower) other income               0.09       0.01       0.10  
    (Higher) lower interest expense       —       (0.01 )     (0.02 )     (0.03 )     (0.06 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (0.03 )     —       0.01       (0.01 )     —       (0.03 )
    All other / rounding   (0.02 )     0.01       —       0.03       (0.02 )     —  
    Second quarter 2025 adjusted operating results per share   1.08       0.35       0.30       0.70       (0.04 )     2.39  
    Items impacting comparability:                      
    Premiums paid on early redemption of debt, net of tax   (0.01 )         (0.01 )             (0.02 )
    Unrealized gain (loss) on derivative asset, net of tax   —                       —  
    Unrealized gain (loss) on other investments, net of tax                   —       —  
    Second quarter 2025 GAAP earnings per share $ 1.07     $ 0.35     $ 0.29     $ 0.70     $ (0.04 )   $ 2.37  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS
    SIX MONTHS ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
    (Thousands of Dollars) Production   Storage   Gathering   Utility   All Other   Consolidated*
    Six months ended March 31, 2024 GAAP earnings $ 114,548     $ 54,792     $ 57,531     $ 71,289     $ 1,132     $ 299,292  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset   3,662                       3,662  
    Tax impact of unrealized (gain) loss on derivative asset   (1,004 )                     (1,004 )
    Unrealized (gain) loss on other investments                   (1,818 )     (1,818 )
    Tax impact of unrealized (gain) loss on other investments                   382       382  
    Six months ended March 31, 2024 adjusted operating results   117,206       54,792       57,531       71,289       (304 )     300,514  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (817 )                     (817 )
    Higher (lower) realized natural gas prices, after hedging   33,964                       33,964  
    Midstream Revenues                      
    Higher (lower) operating revenues       10,865       (332 )             10,533  
    Downstream Margins***                      
    Impact of usage and weather               2,685           2,685  
    Impact of new rates in New York               22,442           22,442  
    Higher (lower) other operating revenues               (1,364 )         (1,364 )
    Operating Expenses                      
    Lower (higher) operating expenses   (1,742 )     (2,105 )     (1,108 )     (4,575 )         (9,530 )
    Lower (higher) property, franchise and other taxes   (746 )                     (746 )
    Lower (higher) depreciation / depletion   13,816       452       (1,802 )     (1,309 )         11,157  
    Other Income (Expense)                      
    Higher (lower) other income   (1,888 )     (603 )         11,720       2,300       11,529  
    (Higher) lower interest expense       328       (1,271 )     (3,679 )     (3,165 )     (7,787 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (2,338 )     (246 )     905       (1,128 )     43       (2,764 )
    All other / rounding   (226 )     679       262       (38 )     (219 )     458  
    Six months ended March 31, 2025 adjusted operating results   157,229       64,162       54,185       96,043       (1,345 )     370,274  
    Items impacting comparability:                      
    Impairment of assets   (141,802 )                     (141,802 )
    Tax impact of impairment of assets   37,169                       37,169  
    Premiums paid on early redemption of debt   (1,430 )         (955 )             (2,385 )
    Tax impact of premiums paid on early redemption of debt   385           257               642  
    Unrealized gain (loss) on derivative asset   (684 )                     (684 )
    Tax impact of unrealized gain (loss) on derivative asset   184                       184  
    Unrealized gain (loss) on other investments                   (2,600 )     (2,600 )
    Tax impact of unrealized gain (loss) on other investments                   546       546  
    Six months ended March 31, 2025 GAAP earnings $ 51,051     $ 64,162     $ 53,487     $ 96,043     $ (3,399 )   $ 261,344  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    RECONCILIATION OF CURRENT AND PRIOR YEAR GAAP EARNINGS PER SHARE
    SIX MONTHS ENDED MARCH 31, 2025
    (Unaudited)
                           
      Upstream   Midstream   Downstream        
                           
      Exploration &   Pipeline &           Corporate /    
      Production   Storage   Gathering   Utility   All Other   Consolidated*
    Six months ended March 31, 2024 GAAP earnings per share $ 1.24     $ 0.59     $ 0.62     $ 0.77     $ 0.02     $ 3.24  
    Items impacting comparability:                      
    Unrealized (gain) loss on derivative asset, net of tax   0.03                       0.03  
    Unrealized (gain) loss on other investments, net of tax                   (0.02 )     (0.02 )
    Six months ended March 31, 2024 adjusted operating results per share   1.27       0.59       0.62       0.77       —       3.25  
    Drivers of adjusted operating results**                      
    Upstream Revenues                      
    Higher (lower) natural gas production   (0.01 )                     (0.01 )
    Higher (lower) realized natural gas prices, after hedging   0.37                       0.37  
    Midstream Revenues                      
    Higher (lower) operating revenues       0.12       —               0.12  
    Downstream Margins***                      
    Impact of usage and weather               0.03           0.03  
    Impact of new rates in New York               0.25           0.25  
    Higher (lower) other operating revenues               (0.01 )         (0.01 )
    Operating Expenses                      
    Lower (higher) operating expenses   (0.02 )     (0.02 )     (0.01 )     (0.05 )         (0.10 )
    Lower (higher) property, franchise and other taxes   (0.01 )                     (0.01 )
    Lower (higher) depreciation / depletion   0.15       —       (0.02 )     (0.01 )         0.12  
    Other Income (Expense)                      
    Higher (lower) other income   (0.02 )     (0.01 )         0.13       0.03       0.13  
    (Higher) lower interest expense       —       (0.01 )     (0.04 )     (0.03 )     (0.08 )
    Income Taxes                      
    Lower (higher) income tax expense / effective tax rate   (0.03 )     —       0.01       (0.01 )     —       (0.03 )
    All other / rounding   0.02       0.02       0.01       (0.01 )     (0.01 )     0.03  
    Six months ended March 31, 2025 adjusted operating results per share   1.72       0.70       0.60       1.05       (0.01 )     4.06  
    Items impacting comparability:                      
    Impairment of assets, net of tax   (1.14 )                     (1.14 )
    Premiums paid on early redemption of debt, net of tax   (0.01 )         (0.01 )             (0.02 )
    Unrealized gain (loss) on derivative asset, net of tax   (0.01 )                     (0.01 )
    Unrealized gain (loss) on other investments, net of tax                   (0.02 )     (0.02 )
    Rounding                   (0.01 )     (0.01 )
    Six months ended March 31, 2025 GAAP earnings per share $ 0.56     $ 0.70     $ 0.59     $ 1.05     $ (0.04 )   $ 2.86  
                           
    * Amounts do not reflect intercompany eliminations.                      
    ** Drivers of adjusted operating results have been calculated using the 21% federal statutory rate.
    *** Downstream margin defined as operating revenues less purchased gas expense.
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                   
    (Thousands of Dollars, except per share amounts)              
      Three Months Ended   Six Months Ended
      March 31,   March 31,
      (Unaudited)   (Unaudited)
    SUMMARY OF OPERATIONS   2025       2024       2025       2024  
    Operating Revenues:              
    Utility Revenues $ 343,574     $ 290,198     $ 571,998     $ 492,119  
    Exploration and Production and Other Revenues   311,958       264,614       560,818       518,633  
    Pipeline and Storage and Gathering Revenues   74,418       75,127       146,616       144,549  
        729,950       629,939       1,279,432       1,155,301  
    Operating Expenses:              
    Purchased Gas   135,338       105,940       200,675       162,491  
    Operation and Maintenance:              
    Utility   63,447       59,288       118,691       112,993  
    Exploration and Production and Other   35,059       32,794       68,600       67,620  
    Pipeline and Storage and Gathering   42,363       39,340       78,304       74,303  
    Property, Franchise and Other Taxes   25,214       23,019       47,270       45,434  
    Depreciation, Depletion and Amortization   111,277       118,935       220,647       234,725  
    Impairment of Assets   —       —       141,802       —  
        412,698       379,316       875,989       697,566  
                   
    Operating Income   317,252       250,623       403,443       457,735  
                   
    Other Income (Expense):              
    Other Income (Deductions)   15,232       6,070       22,952       9,801  
    Interest Expense on Long-Term Debt   (39,662 )     (28,453 )     (73,024 )     (56,915 )
    Other Interest Expense   (5,095 )     (6,636 )     (9,476 )     (12,910 )
                   
    Income Before Income Taxes   287,727       221,604       343,895       397,711  
                   
    Income Tax Expense   71,369       55,332       82,551       98,419  
                   
    Net Income Available for Common Stock $ 216,358     $ 166,272     $ 261,344     $ 299,292  
                   
    Earnings Per Common Share              
    Basic $ 2.39     $ 1.81     $ 2.88     $ 3.25  
    Diluted $ 2.37     $ 1.80     $ 2.86     $ 3.24  
                   
    Weighted Average Common Shares:              
    Used in Basic Calculation   90,500,162       92,114,415       90,640,333       92,011,772  
    Used in Diluted Calculation   91,176,327       92,512,447       91,312,334       92,478,604  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Unaudited)
       
      March 31,   September 30,
    (Thousands of Dollars)   2025       2024  
    ASSETS      
    Property, Plant and Equipment $ 14,834,817     $ 14,524,798  
    Less – Accumulated Depreciation, Depletion and Amortization   7,487,618       7,185,593  
    Net Property, Plant and Equipment   7,347,199       7,339,205  
    Current Assets:      
    Cash and Temporary Cash Investments   39,954       38,222  
    Cash Held in Trust for Bondholders   51,352       —  
    Receivables – Net   291,132       127,222  
    Unbilled Revenue   49,077       15,521  
    Gas Stored Underground   6,413       35,055  
    Materials and Supplies – at average cost   48,451       47,670  
    Unrecovered Purchased Gas Costs   3,562       —  
    Other Current Assets   78,532       92,229  
    Total Current Assets   568,473       355,919  
    Other Assets:      
    Recoverable Future Taxes   88,623       80,084  
    Unamortized Debt Expense   7,166       5,604  
    Other Regulatory Assets   118,800       108,022  
    Deferred Charges   69,572       69,662  
    Other Investments   71,958       81,705  
    Goodwill   5,476       5,476  
    Prepaid Pension and Post-Retirement Benefit Costs   194,325       180,230  
    Fair Value of Derivative Financial Instruments   45       87,905  
    Other   8,326       5,958  
    Total Other Assets   564,291       624,646  
    Total Assets $ 8,479,963     $ 8,319,770  
    CAPITALIZATION AND LIABILITIES      
    Capitalization:      
    Comprehensive Shareholders’ Equity      
    Common Stock, $1 Par Value Authorized – 200,000,000 Shares; Issued and      
    Outstanding – 90,397,698 Shares and 91,005,993 Shares, Respectively $ 90,398     $ 91,006  
    Paid in Capital   1,042,822       1,045,487  
    Earnings Reinvested in the Business   1,855,366       1,727,326  
    Accumulated Other Comprehensive Loss   (222,975 )     (15,476 )
    Total Comprehensive Shareholders’ Equity   2,765,611       2,848,343  
    Long-Term Debt, Net of Current Portion and Unamortized Discount and Debt Issuance Costs   2,381,126       2,188,243  
    Total Capitalization   5,146,737       5,036,586  
    Current and Accrued Liabilities:      
    Notes Payable to Banks and Commercial Paper   208,400       90,700  
    Current Portion of Long-Term Debt   350,000       500,000  
    Accounts Payable   127,611       165,068  
    Amounts Payable to Customers   34,393       42,720  
    Dividends Payable   46,555       46,872  
    Interest Payable on Long-Term Debt   19,454       27,247  
    Customer Advances   —       19,373  
    Customer Security Deposits   30,358       36,265  
    Other Accruals and Current Liabilities   184,925       162,903  
    Fair Value of Derivative Financial Instruments   201,464       4,744  
    Total Current and Accrued Liabilities   1,203,160       1,095,892  
    Other Liabilities:      
    Deferred Income Taxes   1,072,436       1,111,165  
    Taxes Refundable to Customers   302,293       305,645  
    Cost of Removal Regulatory Liability   300,256       292,477  
    Other Regulatory Liabilities   140,828       151,452  
    Other Post-Retirement Liabilities   3,404       3,511  
    Asset Retirement Obligations   193,802       203,006  
    Other Liabilities   117,047       120,036  
    Total Other Liabilities   2,130,066       2,187,292  
    Commitments and Contingencies   —       —  
    Total Capitalization and Liabilities $ 8,479,963     $ 8,319,770  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
      Six Months Ended
      March 31,
    (Thousands of Dollars)   2025       2024  
           
    Operating Activities:      
    Net Income Available for Common Stock $ 261,344     $ 299,292  
    Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:      
    Impairment of Assets   141,802       —  
    Depreciation, Depletion and Amortization   220,647       234,725  
    Deferred Income Taxes   25,787       65,187  
    Premiums Paid on Early Redemption of Debt   2,385       —  
    Stock-Based Compensation   10,487       10,477  
    Other   14,317       11,874  
    Change in:      
    Receivables and Unbilled Revenue   (197,553 )     (50,123 )
    Gas Stored Underground and Materials and Supplies   27,861       25,675  
    Unrecovered Purchased Gas Costs   (3,562 )     —  
    Other Current Assets   13,737       15,201  
    Accounts Payable   17,322       (15,641 )
    Amounts Payable to Customers   (8,327 )     13,327  
    Customer Advances   (19,373 )     (21,003 )
    Customer Security Deposits   (5,907 )     1,836  
    Other Accruals and Current Liabilities   21,528       26,927  
    Other Assets   (20,282 )     (22,165 )
    Other Liabilities   (28,343 )     (9,328 )
    Net Cash Provided by Operating Activities $ 473,870     $ 586,261  
           
    Investing Activities:      
    Capital Expenditures $ (434,260 )   $ (481,958 )
    Other   8,881       (1,189 )
    Net Cash Used in Investing Activities $ (425,379 )   $ (483,147 )
           
    Financing Activities:      
    Changes in Notes Payable to Banks and Commercial Paper   117,700       (8,600 )
    Shares Repurchased Under Repurchase Plan   (50,471 )     (4,230 )
    Reduction of Long-Term Debt   (954,086 )     —  
    Net Proceeds From Issuance of Long-Term Debt   989,019       —  
    Dividends Paid on Common Stock   (93,543 )     (91,048 )
    Net Repurchases of Common Stock Under Stock and Benefit Plans   (4,026 )     (3,914 )
    Net Cash Provided by (Used in) Financing Activities $ 4,593     $ (107,792 )
           
    Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash   53,084       (4,678 )
    Cash, Cash Equivalents, and Restricted Cash at Beginning of Period   38,222       55,447  
    Cash, Cash Equivalents, and Restricted Cash at March 31 $ 91,306     $ 50,769  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                       
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
    UPSTREAM BUSINESS
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    EXPLORATION AND PRODUCTION SEGMENT   2025       2024     Variance     2025       2024     Variance
    Total Operating Revenues $ 311,958     $ 264,614     $ 47,344     $ 560,818     $ 518,633     $ 42,185  
    Operating Expenses:                  
    Operation and Maintenance:                  
    General and Administrative Expense   18,847       17,165       1,682       38,173       34,958       3,215  
    Lease Operating and Transportation Expense   71,176       69,662       1,514       136,816       136,736       80  
    All Other Operation and Maintenance Expense   3,310       2,644       666       7,178       8,188       (1,010 )
    Property, Franchise and Other Taxes   4,275       3,075       1,200       7,657       6,713       944  
    Depreciation, Depletion and Amortization   64,622       73,448       (8,826 )     127,925       145,413       (17,488 )
    Impairment of Assets   —       —       —       141,802       —       141,802  
        162,230       165,994       (3,764 )     459,551       332,008       127,543  
                       
    Operating Income   149,728       98,620       51,108       101,267       186,625       (85,358 )
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit   37       100       (63 )     74       201       (127 )
    Interest and Other Income (Deductions)   101       1,170       (1,069 )     373       (342 )     715  
    Interest Expense on Long-Term Debt   (1,949 )     —       (1,949 )     (1,949 )     —       (1,949 )
    Other Interest Expense   (15,091 )     (15,108 )     17       (30,291 )     (30,377 )     86  
    Income Before Income Taxes   132,826       84,782       48,044       69,474       156,107       (86,633 )
    Income Tax Expense   34,998       22,717       12,281       18,423       41,559       (23,136 )
    Net Income $ 97,828     $ 62,065     $ 35,763     $ 51,051     $ 114,548     $ (63,497 )
    Net Income Per Share (Diluted) $ 1.07     $ 0.67     $ 0.40     $ 0.56     $ 1.24     $ (0.68 )
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                       
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
    MIDSTREAM BUSINESSES
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    PIPELINE AND STORAGE SEGMENT   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ 71,185     $ 71,210     $ (25 )   $ 139,935     $ 136,036     $ 3,899  
    Intersegment Revenues   38,388       36,810       1,578       76,251       66,397       9,854  
    Total Operating Revenues   109,573       108,020       1,553       216,186       202,433       13,753  
    Operating Expenses:                  
    Purchased Gas   162       325       (163 )     121       926       (805 )
    Operation and Maintenance   30,642       29,062       1,580       57,677       55,013       2,664  
    Property, Franchise and Other Taxes   8,600       8,600       —       17,266       17,320       (54 )
    Depreciation, Depletion and Amortization   18,547       19,490       (943 )     37,132       37,704       (572 )
        57,951       57,477       474       112,196       110,963       1,233  
                       
    Operating Income   51,622       50,543       1,079       103,990       91,470       12,520  
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit   952       1,257       (305 )     1,905       2,515       (610 )
    Interest and Other Income   1,794       2,046       (252 )     3,833       3,978       (145 )
    Interest Expense   (11,700 )     (12,119 )     419       (23,428 )     (23,843 )     415  
    Income Before Income Taxes   42,668       41,727       941       86,300       74,120       12,180  
    Income Tax Expense   10,961       10,990       (29 )     22,138       19,328       2,810  
    Net Income $ 31,707     $ 30,737     $ 970     $ 64,162     $ 54,792     $ 9,370  
    Net Income Per Share (Diluted) $ 0.35     $ 0.33     $ 0.02     $ 0.70     $ 0.59     $ 0.11  
                       
                       
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    GATHERING SEGMENT   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ 3,233     $ 3,917     $ (684 )   $ 6,681     $ 8,513     $ (1,832 )
    Intersegment Revenues   61,797       60,076       1,721       119,480       118,068       1,412  
    Total Operating Revenues   65,030       63,993       1,037       126,161       126,581       (420 )
    Operating Expenses:                  
    Operation and Maintenance   12,275       10,796       1,479       21,703       20,300       1,403  
    Property, Franchise and Other Taxes   7       94       (87 )     (227 )     117       (344 )
    Depreciation, Depletion and Amortization   10,834       9,611       1,223       21,349       19,068       2,281  
        23,116       20,501       2,615       42,825       39,485       3,340  
                       
    Operating Income   41,914       43,492       (1,578 )     83,336       87,096       (3,760 )
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit (Costs)   —       9       (9 )     (1 )     19       (20 )
    Interest and Other Income   93       72       21       152       143       9  
    Interest Expense on Long-Term Debt   (1,334 )     —       (1,334 )     (1,334 )     —       (1,334 )
    Other Interest Expense   (4,450 )     (3,701 )     (749 )     (8,661 )     (7,431 )     (1,230 )
    Income Before Income Taxes   36,223       39,872       (3,649 )     73,492       79,827       (6,335 )
    Income Tax Expense   9,881       11,166       (1,285 )     20,005       22,296       (2,291 )
    Net Income $ 26,342     $ 28,706     $ (2,364 )   $ 53,487     $ 57,531     $ (4,044 )
    Net Income Per Share (Diluted) $ 0.29     $ 0.31     $ (0.02 )   $ 0.59     $ 0.62     $ (0.03 )
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                       
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
    DOWNSTREAM BUSINESS
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    UTILITY SEGMENT   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ 343,574     $ 290,198     $ 53,376     $ 571,998     $ 492,119     $ 79,879  
    Intersegment Revenues   119       306       (187 )     203       393       (190 )
    Total Operating Revenues   343,693       290,504       53,189       572,201       492,512       79,689  
    Operating Expenses:                  
    Purchased Gas   171,777       140,836       30,941       273,249       224,886       48,363  
    Operation and Maintenance   64,444       60,229       4,215       120,704       114,913       5,791  
    Property, Franchise and Other Taxes   12,202       11,113       1,089       22,313       21,019       1,294  
    Depreciation, Depletion and Amortization   17,135       16,268       867       33,962       32,305       1,657  
        265,558       228,446       37,112       450,228       393,123       57,105  
                       
    Operating Income   78,135       62,058       16,077       121,973       99,389       22,584  
                       
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Credit   12,299       857       11,442       18,170       1,327       16,843  
    Interest and Other Income   714       1,340       (626 )     1,242       3,250       (2,008 )
    Interest Expense   (10,927 )     (8,528 )     (2,399 )     (21,643 )     (16,986 )     (4,657 )
    Income Before Income Taxes   80,221       55,727       24,494       119,742       86,980       32,762  
    Income Tax Expense   16,677       10,988       5,689       23,699       15,691       8,008  
    Net Income $ 63,544     $ 44,739     $ 18,805     $ 96,043     $ 71,289     $ 24,754  
    Net Income Per Share (Diluted) $ 0.70     $ 0.48     $ 0.22     $ 1.05     $ 0.77     $ 0.28  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
     
    SEGMENT OPERATING RESULTS AND STATISTICS
    (UNAUDITED)
                       
      Three Months Ended   Six Months Ended
    (Thousands of Dollars, except per share amounts) March 31,   March 31,
    ALL OTHER   2025       2024     Variance     2025       2024     Variance
    Total Operating Revenues $ —     $ —     $ —     $ —     $ —     $ —  
    Operating Expenses:                  
    Operation and Maintenance   —       —       —       —       —       —  
        —       —       —       —       —       —  
                       
    Operating Income   —       —       —       —       —       —  
    Other Income (Expense):                  
    Interest and Other Income (Deductions)   (222 )     (41 )     (181 )     (358 )     (119 )     (239 )
    Interest Expense   (131 )     (84 )     (47 )     (248 )     (165 )     (83 )
    Loss before Income Taxes   (353 )     (125 )     (228 )     (606 )     (284 )     (322 )
    Income Tax Benefit   (82 )     (29 )     (53 )     (141 )     (67 )     (74 )
    Net Loss $ (271 )   $ (96 )   $ (175 )   $ (465 )   $ (217 )   $ (248 )
    Net Loss Per Share (Diluted) $ —     $ —     $ —     $ (0.01 )   $ —     $ (0.01 )
               
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    CORPORATE   2025       2024     Variance     2025       2024     Variance
    Revenues from External Customers $ —     $ —     $ —     $ —     $ —     $ —  
    Intersegment Revenues   1,341       1,286       55       2,683       2,571       112  
    Total Operating Revenues   1,341       1,286       55       2,683       2,571       112  
    Operating Expenses:                  
    Operation and Maintenance   5,219       5,121       98       9,266       8,916       350  
    Property, Franchise and Other Taxes   130       137       (7 )     261       265       (4 )
    Depreciation, Depletion and Amortization   139       118       21       279       235       44  
        5,488       5,376       112       9,806       9,416       390  
                       
    Operating Loss   (4,147 )     (4,090 )     (57 )     (7,123 )     (6,845 )     (278 )
    Other Income (Expense):                  
    Non-Service Pension and Post-Retirement Benefit Costs   (212 )     (387 )     175       (423 )     (774 )     351  
    Interest and Other Income   41,785       40,234       1,551       82,846       81,262       1,584  
    Interest Expense on Long-Term Debt   (36,379 )     (28,453 )     (7,926 )     (69,741 )     (56,915 )     (12,826 )
    Other Interest Expense   (4,905 )     (7,683 )     2,778       (10,066 )     (15,767 )     5,701  
    Income (Loss) before Income Taxes   (3,858 )     (379 )     (3,479 )     (4,507 )     961       (5,468 )
    Income Tax Benefit   (1,066 )     (500 )     (566 )     (1,573 )     (388 )     (1,185 )
    Net Income (Loss) $ (2,792 )   $ 121     $ (2,913 )   $ (2,934 )   $ 1,349     $ (4,283 )
    Net Income (Loss) Per Share (Diluted) $ (0.04 )   $ 0.01     $ (0.05 )   $ (0.03 )   $ 0.02     $ (0.05 )
                       
                       
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    INTERSEGMENT ELIMINATIONS   2025       2024     Variance     2025       2024     Variance
    Intersegment Revenues $ (101,645 )   $ (98,478 )   $ (3,167 )   $ (198,617 )   $ (187,429 )   $ (11,188 )
    Operating Expenses:                  
    Purchased Gas   (36,601 )     (35,221 )     (1,380 )     (72,695 )     (63,321 )     (9,374 )
    Operation and Maintenance   (65,044 )     (63,257 )     (1,787 )     (125,922 )     (124,108 )     (1,814 )
        (101,645 )     (98,478 )     (3,167 )     (198,617 )     (187,429 )     (11,188 )
    Operating Income   —       —       —       —       —       —  
    Other Income (Expense):                  
    Interest and Other Deductions   (42,109 )     (40,587 )     (1,522 )     (84,861 )     (81,659 )     (3,202 )
    Interest Expense   42,109       40,587       1,522       84,861       81,659       3,202  
    Net Income $ —     $ —     $ —     $ —     $ —     $ —  
    Net Income Per Share (Diluted) $ —     $ —     $ —     $ —     $ —     $ —  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
     
    SEGMENT INFORMATION (Continued)
    (Thousands of Dollars)
                           
      Three Months Ended   Six Months Ended
      March 31,   March 31,
      (Unaudited)   (Unaudited)
              Increase           Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
                           
    Capital Expenditures:                      
    Exploration and Production $ 108,384   (1) $ 124,184   (3) $ (15,800 )   $ 230,986   (1)(2) $ 285,141   (3)(4) $ (54,155 )
    Pipeline and Storage   15,626   (1)   18,025   (3)   (2,399 )     35,417   (1)(2)   42,579   (3)(4)   (7,162 )
    Gathering   18,499   (1)   19,949   (3)   (1,450 )     31,526   (1)(2)   39,518   (3)(4)   (7,992 )
    Utility   41,867   (1)   37,741   (3)   4,126       78,298   (1)(2)   68,251   (3)(4)   10,047  
    Total Reportable Segments   184,376       199,899       (15,523 )     376,227       435,489       (59,262 )
    All Other   —       —       —       —       —       —  
    Corporate   174       121       53       378       182       196  
    Eliminations   (3,520 )     —       (3,520 )     (3,520 )     —       (3,520 )
    Total Capital Expenditures $ 181,030     $ 200,020     $ (18,990 )   $ 373,085     $ 435,671     $ (62,586 )
    (1)   Capital expenditures for the quarter and six months ended March 31, 2025, include accounts payable and accrued liabilities related to capital expenditures of $44.8 million, $2.4 million, $6.8 million, and $4.8 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts have been excluded from the Consolidated Statement of Cash Flows at March 31, 2025, since they represent non-cash investing activities at that date.
    (2)   Capital expenditures for the six months ended March 31, 2025, exclude capital expenditures of $63.3 million, $14.4 million, $21.7 million and $20.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2024 and paid during the six months ended March 31, 2025. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2024, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2025.
    (3)   Capital expenditures for the quarter and six months ended March 31, 2024, include accounts payable and accrued liabilities related to capital expenditures of $44.4 million, $5.0 million, $5.5 million, and $8.0 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were excluded from the Consolidated Statement of Cash Flows at March 31, 2024, since they represented non-cash investing activities at that date.
    (4)   Capital expenditures for the six months ended March 31, 2024, exclude capital expenditures of $43.2 million, $31.8 million, $20.6 million and $13.6 million in the Exploration and Production segment, Pipeline and Storage segment, Gathering segment and Utility segment, respectively. These amounts were in accounts payable and accrued liabilities at September 30, 2023 and paid during the six months ended March 31, 2024. These amounts were excluded from the Consolidated Statement of Cash Flows at September 30, 2023, since they represented non-cash investing activities at that date. These amounts have been included in the Consolidated Statement of Cash Flows at March 31, 2024.
         
    DEGREE DAYS                                  
                              Percent Colder
                              (Warmer) Than:
    Three Months Ended March 31,   Normal       2025       2024     Normal(1)     Last Year(1)  
    Buffalo, NY(2)   3,226       3,116       2,705       (3.4 )     15.2  
    Erie, PA   3,023       3,017       2,576       (0.2 )     17.1  
                                       
    Six Months Ended March 31,                                  
    Buffalo, NY(2)   5,352       5,000       4,563       (6.6 )     9.6  
    Erie, PA   4,917       4,714       4,240       (4.1 )     11.2  
                                       
    (1)   Percents compare actual 2025 degree days to normal degree days and actual 2025 degree days to actual 2024 degree days.
    (2)   Normal degree days changed from NOAA 30-year degree days to NOAA 15-year degree days with the implementation of new base rates in New York effective October 2024.
         
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
                           
    EXPLORATION AND PRODUCTION INFORMATION
                           
      Three Months Ended   Six Months Ended
      March 31,   March 31,
              Increase           Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
                           
    Gas Production/Prices:                      
    Production (MMcf)                      
    Appalachia   105,514       102,883       2,631       203,232       203,640       (408 )
                           
    Average Prices (Per Mcf)                      
    Weighted Average $ 3.02     $ 1.98     $ 1.04     $ 2.64     $ 2.14     $ 0.50  
    Weighted Average after Hedging $ 2.94     $ 2.56     $ 0.38     $ 2.74     $ 2.53     $ 0.21  
                           
    Selected Operating Performance Statistics:                      
    General and Administrative Expense per Mcf(1) $ 0.18     $ 0.17     $ 0.01     $ 0.19     $ 0.17     $ 0.02  
    Lease Operating and Transportation Expense per Mcf(1)(2) $ 0.67     $ 0.68     $ (0.01 )   $ 0.67     $ 0.67     $ —  
    Depreciation, Depletion and Amortization per Mcf(1) $ 0.61     $ 0.71     $ (0.10 )   $ 0.63     $ 0.71     $ (0.08 )
                           
    (1)   Refer to page 15 for the General and Administrative Expense, Lease Operating and Transportation Expense and Depreciation, Depletion, and Amortization Expense for the Exploration and Production segment.
    (2)   Amounts include transportation expense of $0.57 per Mcf for the three months ended March 31, 2025 and March 31, 2024. Amounts include transportation expense of $0.57 per Mcf for the six months ended March 31, 2025 and March 31, 2024.
         
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
     
    Pipeline and Storage Throughput – (millions of cubic feet – MMcf)            
                                           
      Three Months Ended   Six Months Ended
      March 31,   March 31,
                      Increase                   Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
    Firm Transportation – Affiliated   49,240       42,561       6,679       81,110       74,056       7,054  
    Firm Transportation – Non-Affiliated   185,490       179,697       5,793       356,502       348,303       8,199  
    Interruptible Transportation   454       1,271       (817 )     515       1,389       (874 )
        235,184       223,529       11,655       438,127       423,748       14,379  
                                           
    Gathering Volume – (MMcf)                                      
      Three Months Ended   Six Months Ended
      March 31,   March 31,
                      Increase                   Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
    Gathered Volume   129,771       125,565       4,206       250,732       249,388       1,344  
                                           
                                           
    Utility Throughput – (MMcf)                                      
      Three Months Ended   Six Months Ended
      March 31,   March 31,
                      Increase                   Increase
        2025       2024     (Decrease)     2025       2024     (Decrease)
    Retail Sales:                                      
    Residential Sales   32,111       27,063       5,048       50,587       45,045       5,542  
    Commercial Sales   5,420       4,293       1,127       8,339       7,093       1,246  
    Industrial Sales   302       190       112       501       327       174  
        37,833       31,546       6,287       59,427       52,465       6,962  
    Transportation   25,086       22,637       2,449       42,028       40,166       1,862  
        62,919       54,183       8,736       101,455       92,631       8,824  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
     

    In addition to financial measures calculated in accordance with generally accepted accounting principles (GAAP), this press release contains information regarding adjusted operating results, adjusted EBITDA and free cash flow, which are non-GAAP financial measures. The Company believes that these non-GAAP financial measures are useful to investors because they provide an alternative method for assessing the Company’s ongoing operating results or liquidity and for comparing the Company’s financial performance to other companies. The Company’s management uses these non-GAAP financial measures for the same purpose, and for planning and forecasting purposes. The presentation of non-GAAP financial measures is not meant to be a substitute for financial measures in accordance with GAAP.

    Management defines adjusted operating results as reported GAAP earnings before items impacting comparability. The following table reconciles National Fuel’s reported GAAP earnings to adjusted operating results for the three and six months ended March 31, 2025 and 2024:

      Three Months Ended   Six Months Ended
      March 31,   March 31,
    (in thousands except per share amounts)   2025       2024       2025       2024  
    Reported GAAP Earnings $ 216,358     $ 166,272     $ 261,344     $ 299,292  
    Items impacting comparability:              
    Impairment of assets (E&P)   —       —       141,802       —  
    Tax impact of impairment of assets   —       —       (37,169 )     —  
    Premiums paid on early redemption of debt (E&P / Midstream)   2,385       —       2,385       —  
    Tax impact of premiums paid on early redemption of debt   (642 )     —       (642 )     —  
    Unrealized (gain) loss on derivative asset (E&P)   335       (536 )     684       3,662  
    Tax impact of unrealized (gain) loss on derivative asset   (90 )     147       (184 )     (1,004 )
    Unrealized (gain) loss on other investments (Corporate / All Other)   (17 )     (769 )     2,600       (1,818 )
    Tax impact of unrealized (gain) loss on other investments   4       162       (546 )     382  
    Adjusted Operating Results $ 218,333     $ 165,276     $ 370,274     $ 300,514  
                   
    Reported GAAP Earnings Per Share $ 2.37     $ 1.80     $ 2.86     $ 3.24  
    Items impacting comparability:              
    Impairment of assets, net of tax (E&P)   —       —       1.14       —  
    Premiums paid on early redemption of debt, net of tax (E&P / Midstream)   0.02       —       0.02       —  
    Unrealized (gain) loss on derivative asset, net of tax (E&P)   —       —       0.01       0.03  
    Unrealized (gain) loss on other investments, net of tax (Corporate / All Other)   —       (0.01 )     0.02       (0.02 )
    Rounding   —       —       0.01       —  
    Adjusted Operating Results Per Share $ 2.39     $ 1.79     $ 4.06     $ 3.25  
     

    Management defines adjusted EBITDA as reported GAAP earnings before the following items: interest expense, income taxes, depreciation, depletion and amortization, other income and deductions, impairments, and other items reflected in operating income that impact comparability. The following tables reconcile National Fuel’s reported GAAP earnings to adjusted EBITDA for the three and six months ended March 31, 2025 and 2024:

      Three Months Ended   Six Months Ended
      March 31,   March 31,
    (in thousands)   2025       2024       2025       2024  
    Reported GAAP Earnings $ 216,358     $ 166,272     $ 261,344     $ 299,292  
    Depreciation, Depletion and Amortization   111,277       118,935       220,647       234,725  
    Other (Income) Deductions   (15,232 )     (6,070 )     (22,952 )     (9,801 )
    Interest Expense   44,757       35,089       82,500       69,825  
    Income Taxes   71,369       55,332       82,551       98,419  
    Impairment of Assets   —       —       141,802       —  
    Adjusted EBITDA $ 428,529     $ 369,558     $ 765,892     $ 692,460  
                   
    Adjusted EBITDA by Segment              
    Pipeline and Storage Adjusted EBITDA $ 70,169     $ 70,033     $ 141,122     $ 129,174  
    Gathering Adjusted EBITDA   52,748       53,103       104,685       106,164  
    Total Midstream Businesses Adjusted EBITDA   122,917       123,136       245,807       235,338  
    Exploration and Production Adjusted EBITDA   214,350       172,068       370,994       332,038  
    Utility Adjusted EBITDA   95,270       78,326       155,935       131,694  
    Corporate and All Other Adjusted EBITDA   (4,008 )     (3,972 )     (6,844 )     (6,610 )
    Total Adjusted EBITDA $ 428,529     $ 369,558     $ 765,892     $ 692,460  
    NATIONAL FUEL GAS COMPANY
    AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES
    SEGMENT ADJUSTED EBITDA
     
      Three Months Ended   Six Months Ended
      March 31,   March 31,
    (in thousands)   2025       2024       2025       2024  
    Exploration and Production Segment              
    Reported GAAP Earnings $ 97,828     $ 62,065     $ 51,051     $ 114,548  
    Depreciation, Depletion and Amortization   64,622       73,448       127,925       145,413  
    Other (Income) Deductions   (138 )     (1,270 )     (447 )     141  
    Interest Expense   17,040       15,108       32,240       30,377  
    Income Taxes   34,998       22,717       18,423       41,559  
    Impairment of Assets   —       —       141,802       —  
    Adjusted EBITDA $ 214,350     $ 172,068     $ 370,994     $ 332,038  
                   
    Pipeline and Storage Segment              
    Reported GAAP Earnings $ 31,707     $ 30,737     $ 64,162     $ 54,792  
    Depreciation, Depletion and Amortization   18,547       19,490       37,132       37,704  
    Other (Income) Deductions   (2,746 )     (3,303 )     (5,738 )     (6,493 )
    Interest Expense   11,700       12,119       23,428       23,843  
    Income Taxes   10,961       10,990       22,138       19,328  
    Adjusted EBITDA $ 70,169     $ 70,033     $ 141,122     $ 129,174  
                   
    Gathering Segment              
    Reported GAAP Earnings $ 26,342     $ 28,706     $ 53,487     $ 57,531  
    Depreciation, Depletion and Amortization   10,834       9,611       21,349       19,068  
    Other (Income) Deductions   (93 )     (81 )     (151 )     (162 )
    Interest Expense   5,784       3,701       9,995       7,431  
    Income Taxes   9,881       11,166       20,005       22,296  
    Adjusted EBITDA $ 52,748     $ 53,103     $ 104,685     $ 106,164  
                   
    Utility Segment              
    Reported GAAP Earnings $ 63,544     $ 44,739     $ 96,043     $ 71,289  
    Depreciation, Depletion and Amortization   17,135       16,268       33,962       32,305  
    Other (Income) Deductions   (13,013 )     (2,197 )     (19,412 )     (4,577 )
    Interest Expense   10,927       8,528       21,643       16,986  
    Income Taxes   16,677       10,988       23,699       15,691  
    Adjusted EBITDA $ 95,270     $ 78,326     $ 155,935     $ 131,694  
                   
    Corporate and All Other              
    Reported GAAP Earnings $ (3,063 )   $ 25     $ (3,399 )   $ 1,132  
    Depreciation, Depletion and Amortization   139       118       279       235  
    Other (Income) Deductions   758       781       2,796       1,290  
    Interest Expense   (694 )     (4,367 )     (4,806 )     (8,812 )
    Income Taxes   (1,148 )     (529 )     (1,714 )     (455 )
    Adjusted EBITDA $ (4,008 )   $ (3,972 )   $ (6,844 )   $ (6,610 )
     

    Management defines free cash flow as net cash provided by operating activities, less net cash used in investing activities, adjusted for acquisitions and divestitures. The Company is unable to provide a reconciliation of any projected free cash flow measure to its comparable GAAP financial measure without unreasonable efforts. This is due to an inability to calculate the comparable GAAP projected metrics, including operating income and total production costs, given the unknown effect, timing, and potential significance of certain income statement items.

    The MIL Network –

  • MIL-OSI: COMSTOCK RESOURCES, INC. REPORTS FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS

    Source: GlobeNewswire (MIL-OSI)

    FRISCO, TX, April 30, 2025 (GLOBE NEWSWIRE) — Comstock Resources, Inc. (“Comstock” or the “Company”) (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2025.

    Highlights of 2025‘s First Quarter

    • Higher natural gas prices in the first quarter drove improved financial results in the quarter.
      • Natural gas and oil sales, including realized hedging gains, were $405 million for the quarter.
      • Operating cash flow was $239 million or $0.81 per diluted share.
      • Adjusted EBITDAX for the quarter was $293 million.
      • Adjusted net income was $53.8 million or $0.18 per diluted share for the quarter.
    • Comstock resumed completion activity in late 2024 allowing it to turn fourteen (11.3 net) operated wells to sales since the last update with an average per well initial production rate of 25 MMcf per day.
    • The successful results of Comstock’s step out Western Haynesville well drilled in Freestone County, Texas substantially extended the success the Company has had in proving up its Western Haynesville acreage.

    Financial Results for the Three Months Ended March 31, 2025

    Natural gas prices improved substantially in the first quarter of 2025 and Comstock realized $3.58 per Mcf before hedging and $3.52 per Mcf after hedging for its natural gas production of 115 Bcf in the quarter. Comstock’s natural gas and oil sales in the first quarter of 2025 increased to $405.0 million (including realized hedging losses of $8.0 million). Operating cash flow (excluding changes in working capital) generated in the first quarter of 2025 was $239.0 million, and net loss for the first quarter was $115.4 million or $0.40 per share. The net loss in the quarter included a pre-tax $322.4 million unrealized loss on hedging contracts held for price risk management resulting from the rise in future natural gas prices since the end of 2024. Excluding this item and exploration expense, adjusted net income for the first quarter of 2025 was $53.8 million, or $0.18 per diluted share.

    Comstock’s production cost per Mcfe in the first quarter averaged $0.83 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.30 for lease operating costs, $0.10 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock’s unhedged operating margin was 77% in the first quarter of 2025 and 76% after hedging.

    Drilling Results

    Comstock drilled seven (6.9 net) operated horizontal Haynesville/Bossier shale wells in the first quarter of 2025, which had an average lateral length of 11,660 feet. Comstock turned eleven (8.3 net) operated wells to sales in the first quarter of 2025.

    Since its last operational update in February, Comstock has turned fourteen (11.3 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 25 MMcf per day. The completed lateral length of these wells averaged 12,220 feet. Included in the wells turned to sales was our first Western Haynesville well drilled in Freestone county, the Olajuwon Pickens #1, which had a 10,306 foot completed lateral. This well is 24.4 miles away from the closest producing Western Haynesville well and represents a major milestone in Comstock’s progress in delineating its Western Haynesville acreage. The Olajuwon Pickens #1 was turned to sales at an initial production rate of 41 MMcf per day.

    Other

    On April 29, 2025, Comstock also announced that its bank group reaffirmed the $2.0 billion borrowing base under its $1.5 billion revolving credit facility.

    Earnings Call Information

    Comstock has planned a conference call for 10:00 a.m. Central Time on May 1, 2025, to discuss the first quarter 2025 operational and financial results. Investors wishing to listen should visit the Company’s website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
    https://register-conf.media-server.com/register/BIe794f2ba5583499f970858176fd39094.
    Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/99m3j47q.

    If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on May 1, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/99m3j47q.

    This press release may contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company’s filings with the Securities and Exchange Commission (“SEC”) available on the Company’s website or the SEC’s website at sec.gov.

    Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company’s stock is traded on the New York Stock Exchange under the symbol CRK.

    COMSTOCK RESOURCES, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)

        Three Months Ended
    March 31,    		  
        2025     2024  
    Revenues:            
    Natural gas sales   $ 412,286     $ 287,083  
    Oil sales     702       876  
    Total natural gas and oil sales     412,988       287,959  
    Gas services     99,866       47,813  
    Total revenues     512,854       335,772  
    Operating expenses:            
    Production and ad valorem taxes     11,179       17,908  
    Gathering and transportation     42,617       47,099  
    Lease operating     35,000       35,072  
    Exploration     2,150       —  
    Depreciation, depletion and amortization     167,891       190,689  
    Gas services     116,769       48,680  
    General and administrative     11,080       9,171  
    Total operating expenses     386,686       348,619  
    Operating income (loss)     126,168       (12,847 )
    Other income (expenses):            
    Gain (loss) from derivative financial instruments     (330,339 )     39,307  
    Other income     339       331  
    Interest expense     (54,837 )     (49,557 )
    Total other expenses     (384,837 )     (9,919 )
    Loss before income taxes     (258,669 )     (22,766 )
    Benefit from income taxes     143,276       8,292  
    Net loss     (115,393 )     (14,474 )
    Net income attributable to noncontrolling interest     (5,885 )     (1,847 )
    Net loss available to the Company   $ (121,278 )   $ (16,321 )
                 
    Net loss per share            
    Basic   $ (0.40 )   $ (0.05 )
    Diluted   $ (0.40 )   $ (0.05 )
    Weighted average shares outstanding:            
    Basic     290,303       277,962  
    Diluted     290,303       277,962  

    COMSTOCK RESOURCES, INC.
    OPERATING RESULTS
    (In thousands, except per unit amounts)

        Three Months Ended March 31,  
        2025     2024  
    Natural gas production (MMcf)     115,029       139,443  
    Oil production (Mbbls)     10       12  
    Total production (MMcfe)     115,091       139,515  
                 
    Natural gas sales   $ 412,286     $ 287,083  
    Natural gas hedging settlements (1)     (7,959 )     47,995  
    Total natural gas including hedging     404,327       335,078  
    Oil sales     702       876  
    Total natural gas and oil sales including hedging   $ 405,029     $ 335,954  
                 
    Average natural gas price (per Mcf)   $ 3.58     $ 2.06  
    Average natural gas price including hedging (per Mcf)   $ 3.52     $ 2.40  
    Average oil price (per barrel)   $ 70.20     $ 73.00  
    Average price (per Mcfe)   $ 3.59     $ 2.06  
    Average price including hedging (per Mcfe)   $ 3.52     $ 2.41  
                 
    Production and ad valorem taxes   $ 11,179     $ 17,908  
    Gathering and transportation     42,617       47,099  
    Lease operating     35,000       35,072  
    Cash general and administrative (2)     6,640       5,755  
    Total production costs   $ 95,436     $ 105,834  
                 
    Production and ad valorem taxes (per Mcfe)   $ 0.10     $ 0.13  
    Gathering and transportation (per Mcfe)     0.37       0.34  
    Lease operating (per Mcfe)     0.30       0.25  
    Cash general and administrative (per Mcfe)     0.06       0.04  
    Total production costs (per Mcfe)   $ 0.83     $ 0.76  
                 
    Unhedged operating margin     77 %     63 %
    Hedged operating margin     76 %     68 %
                 
    Gas services revenue   $ 99,866     $ 47,813  
    Gas services expenses     116,769       48,680  
    Gas services margin   $ (16,903 )   $ (867 )
                 
    Natural Gas and Oil Capital Expenditures:            
    Unproved property acquisitions   $ 9,684     $ 69,444  
    Total natural gas and oil properties acquisitions   $ 9,684     $ 69,444  
    Exploration and Development:            
    Development leasehold   $ 3,556     $ 3,938  
    Exploratory drilling and completion     100,107       106,456  
    Development drilling and completion     145,578       145,793  
    Other development costs     515       37  
    Total exploration and development capital expenditures   $ 249,756     $ 256,224  

    (1)    Included in gain (loss) from derivative financial instruments in operating results.

    (2)    Excludes stock-based compensation.

    COMSTOCK RESOURCES, INC.
    NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share amounts)

        Three Months Ended
    March 31,    		  
        2025     2024  
    ADJUSTED NET INCOME (LOSS):            
    Net loss   $ (115,393 )   $ (14,474 )
    Unrealized loss from derivative financial instruments     322,380       8,688  
    Exploration expense     2,150       —  
    Adjustment to income taxes     (155,292 )     (2,752 )
    Adjusted net income (loss)   $ 53,845     $ (8,538 )
                 
    Adjusted net income (loss) per share (2)   $ 0.18     $ (0.03 )
    Diluted shares outstanding     293,633       277,962  
                 
                 
    ADJUSTED EBITDAX:            
    Net loss   $ (115,393 )   $ (14,474 )
    Interest expense     54,837       49,557  
    Income taxes     (143,276 )     (8,292 )
    Depreciation, depletion, and amortization     167,891       190,689  
    Exploration     2,150       —  
    Unrealized loss from derivative financial instruments     322,380       8,688  
    Stock-based compensation     4,442       3,415  
    Total Adjusted EBITDAX (3)   $ 293,031     $ 229,583  

    (1)   Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company’s profitability excluding non-cash unrealized gains and losses on derivative financial instruments, exploration expense and other unusual items.

    (2)   Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units pursuant to the treasury stock method.

    (3)   Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock’s results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized gains and losses on derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

    COMSTOCK RESOURCES, INC.
    NON-GAAP FINANCIAL MEASURES
    (In thousands)

        Three Months Ended
    March 31,    		  
        2025     2024  
    OPERATING CASH FLOW (1):            
    Net loss   $ (115,393 )   $ (14,474 )
    Reconciling items:            
    Unrealized loss from derivative financial instruments     322,380       8,688  
    Deferred income taxes     (143,276 )     (8,287 )
    Depreciation, depletion and amortization     167,891       190,689  
    Amortization of debt discount and issuance costs     2,944       1,984  
    Stock-based compensation     4,442       3,415  
    Operating cash flow   $ 238,988     $ 182,015  
    (Increase) decrease in accounts receivable     (33,660 )     99,418  
    Decrease in other current assets     559       5,576  
    Decrease in accounts payable and accrued expenses     (31,141 )     (115,470 )
    Net cash provided by operating activities   $ 174,746     $ 171,539  
        Three Months Ended
    March 31,    		  
        2025     2024  
    FREE CASH FLOW (DEFICIT)(2):            
    Operating cash flow   $ 238,988     $ 182,015  
    Less:            
    Exploration and development capital expenditures     (249,756 )     (256,224 )
    Midstream capital expenditures     (48,668 )     (5,298 )
    Other capital expenditures     (86 )     (29 )
    Contributions from midstream partner     59,500       6,000  
    Free cash deficit from operations   $ (22 )   $ (73,536 )
    Acquisitions     (9,684 )     (69,444 )
    Free cash deficit after acquisitions   $ (9,706 )   $ (142,980 )

    (1)   Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts.

    (2)   Free cash deficit from operations and free cash deficit after acquisitions are presented in the earnings release because management believes them to be useful indicators of the Company’s ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, contributions from its midstream partner, proved and unproved property acquisitions, and proceeds from divestiture of natural gas and oil properties.

    COMSTOCK RESOURCES, INC.
    CONSOLIDATED BALANCE SHEETS
    (In thousands)

        March 31,
    2025    		     December 31,
    2024    		  
    ASSETS            
    Cash and cash equivalents   $ 32,875     $ 6,799  
    Accounts receivable     208,506       174,846  
    Derivative financial instruments     —       4,865  
    Other current assets     97,595       97,524  
    Total current assets     338,976       284,034  
    Property and equipment, net     5,828,842       5,688,389  
    Goodwill     335,897       335,897  
    Operating lease right-of-use assets     97,832       73,777  
        $ 6,601,547     $ 6,382,097  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Accounts payable   $ 433,797     $ 421,814  
    Accrued costs     113,231       146,173  
    Operating leases     47,256       35,927  
    Derivative financial instruments     263,796       8,940  
    Total current liabilities     858,080       612,854  
    Long-term debt     3,050,034       2,952,090  
    Deferred income taxes     201,841       345,116  
    Derivative financial instruments     129,416       66,757  
    Long-term operating leases     50,485       37,740  
    Asset retirement obligation     34,507       33,996  
    Total liabilities     4,324,363       4,048,553  
    Stockholders’ Equity:            
    Common stock     146,460       146,130  
    Additional paid-in capital     1,367,696       1,366,274  
    Accumulated earnings     607,341       728,619  
    Total stockholders’ equity attributable to Comstock     2,121,497       2,241,023  
    Noncontrolling interest     155,687       92,521  
    Total stockholders’ equity     2,277,184       2,333,544  
        $ 6,601,547     $ 6,382,097  

    The MIL Network –

  • MIL-OSI: Orange County Bancorp, Inc. Announces First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    Highlights include:

    • Net interest margin of 3.95% for the quarter ended March 31, 2025 increased 31 basis points, or 8.5%, versus 3.64% for the quarter ended March 31, 2024
    • Total Deposits grew $128.3 million, or 6.0%, reaching $2.3 billion at March 31, 2025 as compared to $2.2 billion at December 31, 2024
    • Total Loans of $1.9 billion at March 31, 2025 increased $38.5 million, or 2.1%, from $1.8 billion at December 31, 2024
    • Net Income reached $8.7 million for the three months ended March 31, 2025 representing a decrease of $586 thousand, or 6.3%, as compared to $9.3 million for the three months ended March 31, 2024
    • Trust and investment advisory income rose $553 thousand, or 19.2%, to $3.4 million, for the quarter ended March 31, 2025 from $2.9 million for the quarter ended March 31, 2024
    • Book value per share increased $1.34, or 8.2%, reaching $17.69 at March 31, 2025 as compared to $16.35 at December 31, 2024

    MIDDLETOWN, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — Orange County Bancorp, Inc. (the “Company” – Nasdaq: OBT), parent company of Orange Bank & Trust Co. (the “Bank”) and Hudson Valley Investment Advisors, Inc. (“HVIA”), today announced net income of $8.7 million, or $0.77 per basic and diluted share, for the quarter ended March 31, 2025. This represents a $586 thousand, or 6.3%, decrease in net income as compared to $9.3 million, or $0.82 per basic and diluted share, for the quarter ended March 31, 2024. The year-over-year comparison reflects a reduction in provision for credit losses on loans and increases in net interest income and total noninterest income in the most recent quarter, while the same period last year benefitted from a one-time recovery of $1.9 million from the sale of Signature Bank subordinated debt previously written off. The prior year’s gain had an approximately $.17 per share impact on first quarter earnings.   Non-interest income for the quarter ended March 31, 2025 rose $670 thousand, or 18.2%, to $4.4 million, as compared to $3.7 million for the quarter ended March 31, 2024.

    Book value per share rose $1.34, or 8.2%, from $16.35 at December 31, 2024 to $17.69 at March 31, 2025. Tangible book value per share also increased $1.35, or 8.5%, from $15.80 at December 31, 2024 to $17.15 at March 31, 2025 (see “Non-GAAP Financial Measure Reconciliation” below for additional detail). These increases were the result of earnings growth during the quarter combined with a decrease in unrealized losses in the investment portfolio attributed to interest rate changes during the first quarter of 2025.

    “2025 began with anticipation of a deregulatory, pro-business agenda from the incoming administration that would accelerate economic growth, but saw the quarter marked instead by uncertainty and market volatility stemming from government cost cutting and tariff policy,” said Orange Bank President and CEO, Michael Gilfeather. “Despite this unexpected shift, I am pleased to announce Orange Bank posted another excellent quarterly performance. For the three months ended March 31, 2025, the Company earned $8.7 million. This was a $586 thousand, or 6.3%, decrease versus the same quarter in 2024, but reflects solid growth in net interest income and noninterest income and a meaningful reduction in our provision for credit losses excluding a $1.9 million gain we realized last year as the result of recovery from the sale of Signature Bank subordinated debt previously written off. Excluding last year’s one-time gain, earnings for Q1 2025 would have exceeded Q1 2024.

    While we hope for the return of more stable, predictable markets, for the benefit of local economic activity and businesses, our clients continue to identify compelling long-term investment opportunities for us to finance. Total loans grew $38.5 million, or 2.1%, for the quarter, from $1.8 billion at December 31, 2024. As discussed in prior quarters, we continue to employ a conservative underwriting posture that guides the prioritization, sizing, and pricing of loans to ensure we thoughtfully manage risk while providing our clients with access to capital.

    The quarter also saw strong deposit growth; up $128.3 million, or 6.0%, to $2.3 billion at March 31, 2025 from $2.2 billion at December 31, 2024. Growth in deposits remains a priority for the Bank, and effective management of their costs has long been a strategic and differentiating strength of our organization. Our cost of deposits for the first quarter of 2025 was 1.29%, down compared to 1.34% for the first quarter of 2024.  

    Also embedded in our operational results is solid expansion of net interest margin, which ended the quarter at 3.95%. This is a 31 basis points, or 8.5%, increase, over the same quarter last year, once again reflecting management of our overall process and drive to source appropriately priced deposits.

    Our Wealth Management division also continued its strong recent performance in the quarter. Trust and investment advisory income rose $553 thousand, or 19.2%, to $3.4 million, for the quarter ended March 31, 2025, from $2.9 million for the quarter ended March 31, 2024. This division not only provides the Bank an important, diversified source of revenue, but also offers clients additional, value-added service that leads to stronger, longer-lasting business relationships.

    Though it’s difficult to predict when the current period of market volatility and uncertainty will subside, I remain confident in our team and Company’s ability to adapt and meet our clients’ needs. This is a testament to strategic initiatives and execution we’ve committed to the past several years and is only possible through the dedication of our employees, the continued trust of our clients, and the support of our stockholders. I thank you all.”

    First Quarter 2025 Financial Review

    Net Income

    Net income for the first quarter of 2025 was $8.7 million, a decrease of $586 thousand, or 6.3%, from net income of $9.3 million for the first quarter of 2024. This decrease was the result of a one-time recovery of $1.9 million from the sale of Signature Bank subordinated debt in the first quarter of 2024 offset by higher net interest income and noninterest income as well as a reduced provision for credit losses on loans during the first quarter of 2025 as compared to the first quarter of 2024.  

    Net Interest Income

    For the three months ended March 31, 2025, net interest income rose $2.0 million, or 9.4%, to $23.6 million versus $21.6 million during the same period last year reflecting an increase in total interest income of $834 thousand and a decrease in total interest expense of $1.2 million mainly due to lower borrowing costs during the current period.

    Total interest income rose $834 thousand, or 2.7%, to $31.9 million for the three months ended March 31, 2025, compared to $31.1 million for the three months ended March 31, 2024. The increase reflected 6.6% growth in interest and fees associated with loans which was offset by decreases in interest income associated with investment securities, fed funds, and balances held at correspondent banks.

    Total interest expense decreased $1.2 million during the first quarter of 2025, to $8.3 million, as compared to $9.5 million in the first quarter of 2024. Interest expense from FHLB advances and borrowings during the current quarter totaled $931 thousand as compared to $2.3 million during the first quarter of 2024. The decrease primarily represented the effect of lower average balances and costs associated with FHLB borrowings. Interest expense associated with savings and NOW accounts totaled $4.9 million during the first quarter of 2025 as compared to $4.6 million during the first quarter of 2024. Interest expense related to brokered deposits totaled $2.1 million during the first quarter of 2025 as compared to $2.3 million during the first quarter of 2024.

    Provision for Credit Losses

    Provision for credit losses amounted to $202 thousand for the three months ended March 31, 2025 and a net credit of $1.6 million for the three months ended March 31, 2024. The increase in the provision for credit losses was primarily attributable to the investment recovery during 2024. The allowance for credit losses to total loans was 1.42% as of March 31, 2025 versus 1.44% as of December 31, 2024. No additional reserves for investment securities were recorded during 2025 or 2024, respectively.

    Non-Interest Income

    Non-interest income rose $670 thousand, or 18.2%, to $4.4 million for the three months ended March 31, 2025 as compared to $3.7 million for the three months ended March 31, 2024. This growth was related to increased fee income within each of the Company’s fee income categories, including investment advisory, trust, and service charges on deposit accounts.

    Non-Interest Expense

    Non-interest expense was $16.5 million for the first quarter of 2025, reflecting an increase of $1.2 million, or 7.7%, as compared to $15.3 million for the same period in 2024. The increase in non-interest expense for the current three-month period continues to reflect the Company’s investment in growth. This investment consists primarily of increases in compensation, occupancy, and information technology. Our efficiency ratio, which is a non-GAAP measurement, decreased to 58.9% for the three months ended March 31, 2025, from 60.5% for the same period in 2024.  

    Income Tax Expense

    Provision for income taxes for the three months ended March 31, 2025 was $2.6 million, representing an increase of $257 thousand, or 11.0%, as compared to $2.3 million for the three months ended March 31, 2024. The amount was directly related to provisions associated with the Company’s earnings as well as the effect of certain tax adjustments for the quarter. Our effective tax rate for the three-month period ended March 31, 2025 was 22.9%, as compared to 20.0% for the same period in 2024.  

    Financial Condition

    Total consolidated assets increased by $50.2 million, or 2.0%, and grew from $2.5 billion at December 31, 2024 to $2.6 billion at March 31, 2025. The increase reflected increases in cash and loans during the first quarter of 2025.

    Total cash and due from banks increased from $150.3 million at December 31, 2024, to $164.2 million at March 31, 2025, an increase of approximately $13.8 million, or 9.2%. This increase resulted mainly from higher levels of deposit balances.

    Total investment securities fell $4.2 million, or 0.9%, from $453.4 million at December 31, 2024 to $449.3 million at March 31, 2025. The decrease was driven primarily by investment securities maturities during the first three months of 2025.

    Total loans increased $38.5 million, or 2.1%, to $1.9 billion at March 31, 2025 from $1.8 billion at December 31, 2024. The increase was due primarily to growth of $19.7 million in CRE loans, including additional growth of $16.7 million in CRE Construction loans as well as $4.9 million in commercial and industrial loans.

    Total deposits increased $128.3 million, to $2.3 billion at March 31, 2025 from approximately $2.2 billion at December 31, 2024. This increase was due primarily to $50.8 million of growth in interest bearing demand deposits; $24.3 million increase in money market accounts; $11.5 million growth in savings accounts; and $38.8 million increase in time deposits mainly associated with brokered deposits which the Bank utilized to increase cash balances and reduce borrowings during the first quarter. The increases in deposits also included a $2.9 million increase in noninterest-bearing demand deposit accounts during the quarter. Deposit composition at March 31, 2025 included 45.4% in demand deposit accounts (including NOW accounts) as a percentage of total deposits. Uninsured deposits, net of fully collateralized municipal relationships, remain stable and represent approximately 39% at March 31, 2025 and December 31, 2024, respectively.

    FHLBNY short-term borrowings were $20.5 million at March 31, 2025 down from $113.5 million at December 31, 2024. The decrease in borrowings was driven mainly by increased deposits which outpaced loan growth during the quarter and allowed for paydowns of borrowings while maintaining consistent levels of cash at March 31, 2025.

    Stockholders’ equity increased $15.8 million, or 8.5%, to $201.3 million at March 31, 2025 from $185.5 million at December 31, 2024. The increase was due to the combination of $8.7 million in net income and a decrease in unrealized losses of approximately $7.7 million on the market value of investment securities within the Company’s equity as accumulated other comprehensive income (loss) (“AOCI”), net of taxes during the first quarter of 2025 offset by dividends of $1.5 million.

    At March 31, 2025, the Bank maintained capital ratios in excess of regulatory standards for well capitalized institutions. The Bank’s Tier 1 capital-to-average-assets ratio was 10.41%, both common equity and Tier 1 capital-to-risk-weighted-assets were 14.16%, and total-capital-to-risk-weighted-assets was 15.42%.  

    Wealth Management

    At March 31, 2025, our Wealth Management Division, which includes trust and investment advisory, totaled $1.7 billion in assets under management or advisory as compared to $1.8 billion at December 31, 2024, reflecting a decrease of $43.0 million, or 2.4%. Trust and investment advisory income for the quarter ended March 31, 2025 totaled $3.4 million and represented an increase of 19.2%, or $553 thousand, as compared to $2.9 million for the quarter ended March 31, 2024.

    The breakdown of trust and investment advisory assets as of March 31, 2025 and December 31, 2024, respectively, is as follows:

    ORANGE COUNTY BANCORP, INC.
    SUMMARY OF AUM/AUA
    (UNAUDITED)
    (Dollar Amounts in thousands)
      At March 31, 2025   At December 31, 2024
      Amount   Percent   Amount   Percent
    Investment Assets Under Management & Advisory $ 1,105,692     63.55 %   $ 1,105,143     61.99 %
    Trust Asset Under Administration & Management   634,177     36.45 %     677,723     38.01 %
    Total $ 1,739,869     100.00 %   $ 1,782,866     100.00 %
                   

    Loan Quality

    At March 31, 2025, the Bank had total non-performing loans of $6.2 million, or 0.33% of total loans. Total non-accrual loans represented approximately $6.2 million of loans at March 31, 2025, compared to $6.3 million at December 31, 2024.

    Liquidity

    Management believes the Bank has the necessary liquidity to meet normal business needs. The Bank uses a variety of resources to manage its liquidity position. These include short term investments, cash from lending and investing activities, core-deposit growth, and non-core funding sources, such as time deposits exceeding $250,000, brokered deposits, FHLBNY advances, and other borrowings. As of March 31, 2025, the Bank’s cash and due from banks totaled $164.2 million. The Bank maintains an investment portfolio of securities available for sale, comprised mainly of US Government agency and treasury securities, Small Business Administration loan pools, mortgage-backed securities, and municipal bonds. Although the portfolio generates interest income for the Bank, it also serves as an available source of liquidity and funding. As of March 31, 2025, the Bank’s investment in securities available for sale was $443.8 million, of which $80.3 million was not pledged as collateral. Additionally, as of March 31, 2025, the Bank’s overnight advance line capacity at the Federal Home Loan Bank of New York was $631.0 million, of which $96.4 million was used to collateralize municipal deposits and $10.0 million was utilized for overnight and long term FHLBNY advances. As of March 31, 2025, the Bank’s unused borrowing capacity at the FHLBNY was $524.6 million. The Bank also maintains additional borrowing capacity of $20 million with other correspondent banks. Additional funding is available to the Bank through the discount window lending by the Federal Reserve. At March 31, 2025, the Bank also held $91.0 million of collateral at the Federal Reserve Bank which could be utilized to provide additional funding through the discount window.

    The Bank also considers brokered deposits as an element of its deposit strategy. As of March 31, 2025, the Bank had brokered deposit arrangements with various terms totaling $220.0 million.

     
    Non-GAAP Financial Measure Reconciliations
    The following table reconciles, as of the dates set forth below, stockholders’ equity (on a GAAP basis) to tangible equity and total assets (on a GAAP basis) to tangible assets and calculates our tangible book value per share.
           
      March 31, 2025   December 31, 2024
      (Dollars in thousands except for share data)
    Tangible Common Equity:      
    Total stockholders’ equity $ 201,324     $ 185,531  
    Adjustments:      
    Goodwill   (5,359 )     (5,359 )
    Other intangible assets   (750 )     (821 )
    Tangible common equity $ 195,215     $ 179,351  
    Common shares outstanding   11,383,738       11,350,158  
    Book value per common share $ 17.69     $ 16.35  
    Tangible book value per common share $ 17.15     $ 15.80  
           
    Tangible Assets      
    Total assets $ 2,560,128     $ 2,509,927  
    Adjustments:      
    Goodwill   (5,359 )     (5,359 )
    Other intangible assets   (750 )     (821 )
    Tangible assets $ 2,554,019     $ 2,503,747  
    Tangible common equity to tangible assets   7.64 %     7.16 %
           
    NOTE: Share data and related information has been adjusted for the effect of the 2 for 1 stock split in January 2025
           

    About Orange County Bancorp, Inc.

    Orange County Bancorp, Inc. is the parent company of Orange Bank & Trust Company and Hudson Valley Investment Advisors, Inc. Orange Bank & Trust Company is an independent bank that began with the vision of 14 founders over 125 years ago. It has grown through innovation and an unwavering commitment to its community and business clientele to approximately $2.6 billion in total assets. Hudson Valley Investment Advisors, Inc. is a Registered Investment Advisor in Goshen, NY. It was founded in 1996 and acquired by the Company in 2012.

    Forward Looking Statements

    Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward looking statements may be identified by reference to a future period or periods, or by the use of forward looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward looking statements are subject to numerous risks and uncertainties, including, but not limited to, those related to the real estate and economic environment, particularly in the market areas in which the Company operates, competitive products and pricing, fiscal and monetary policies of the U.S. Government, inflation, tariffs, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, increased levels of loan delinquencies, problem assets and foreclosures, credit risk management, asset-liability management, cybersecurity risks, geopolitical conflicts, public health issues, the financial and securities markets and the availability of and costs associated with sources of liquidity.

    The Company wishes to caution readers not to place undue reliance on any such forward looking statements, which speak only as of the date made. The Company wishes to advise readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake and specifically declines any obligation to publicly release the results of any revisions that may be made to any forward looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

    For further information:
    Michael Lesler
    EVP & Chief Financial Officer
    mlesler@orangebanktrust.com
    Phone: (845) 341-5111

     
    ORANGE COUNTY BANCORP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CONDITION
    (UNAUDITED)
      (Dollar Amounts in thousands except per share data)
               
          March 31, 2025   December 31, 2024
               
        ASSETS      
               
    Cash and due from banks $ 164,173     $ 150,334  
    Investment securities – available-for-sale   443,797       443,775  
    (Amortized cost $509,906 at March 31, 2025 and $519,567 at December 31, 2024)    
    Restricted investment in bank stocks   5,525       9,716  
    Loans   1,854,254       1,815,751  
    Allowance for credit losses   (26,373 )     (26,077 )
      Loans, net   1,827,881       1,789,674  
               
    Premises and equipment, net   15,904       15,808  
    Accrued interest receivable   11,002       6,680  
    Bank owned life insurance   42,516       42,257  
    Goodwill   5,359       5,359  
    Intangible assets   750       821  
    Other assets   43,221       45,503  
               
        TOTAL ASSETS $ 2,560,128     $ 2,509,927  
               
        LIABILITIES AND STOCKHOLDERS’ EQUITY      
               
    Deposits:      
      Noninterest bearing $ 654,061     $ 651,135  
      Interest bearing   1,627,637       1,502,224  
        Total deposits   2,281,698       2,153,359  
               
    FHLB advances, short term   20,500       113,500  
    FHLB advances, long term   10,000       10,000  
    Subordinated notes, net of issuance costs   19,609       19,591  
    Accrued expenses and other liabilities   26,997       27,946  
               
        TOTAL LIABILITIES   2,358,804       2,324,396  
               
        STOCKHOLDERS’ EQUITY      
               
    Common stock, $0.25 par value; 30,000,000 shares authorized;      
      11,391,755 and 11,366,608 issued; 11,383,738 and 11,350,158 outstanding,    
      at March 31, 2025 and December 31, 2024, respectively   2,848       2,842  
    Surplus   121,546       120,896  
    Retained Earnings   137,148       129,919  
    Accumulated other comprehensive income (loss), net of taxes   (60,019 )     (67,751 )
    Treasury stock, at cost; 8,017 and 16,450 shares at March 31,      
      2025 and December 31, 2024, respectively   (199 )     (375 )
        TOTAL STOCKHOLDERS’ EQUITY   201,324       185,531  
               
        TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 2,560,128     $ 2,509,927  
               
     
    ORANGE COUNTY BANCORP, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)
    (Dollar Amounts in thousands except per share data)
            For Three Months Ended March 31,
            2025   2024
    INTEREST INCOME      
      Interest and fees on loans $ 27,314     $ 25,614  
      Interest on investment securities:      
        Taxable   2,664       3,226  
        Tax exempt   576       568  
      Interest on Federal funds sold and other   1,353       1,665  
                 
        TOTAL INTEREST INCOME   31,907       31,073  
                 
    INTEREST EXPENSE      
      Savings and NOW accounts   4,894       4,577  
      Time deposits   2,224       2,414  
      FHLB advances and borrowings   931       2,251  
      Subordinated notes   230       230  
        TOTAL INTEREST EXPENSE   8,279       9,472  
                 
        NET INTEREST INCOME   23,628       21,601  
                 
    Provision for credit losses   202       (1,640 )
        NET INTEREST INCOME AFTER      
          PROVISION FOR CREDIT LOSSES   23,426       23,241  
                 
    NONINTEREST INCOME      
      Service charges on deposit accounts   290       235  
      Trust income   1,674       1,312  
      Investment advisory income   1,766       1,575  
      Earnings on bank owned life insurance   259       242  
      Other   367       322  
        TOTAL NONINTEREST INCOME   4,356       3,686  
                 
    NONINTEREST EXPENSE      
      Salaries   6,905       6,738  
      Employee benefits   2,450       2,122  
      Occupancy expense   1,277       1,161  
      Professional fees   1,347       1,436  
      Directors’ fees and expenses   306       322  
      Computer software expense   1,982       1,235  
      FDIC assessment   330       418  
      Advertising expenses   389       364  
      Advisor expenses related to trust income   22       33  
      Telephone expenses   207       187  
      Intangible amortization   71       72  
      Other   1,208       1,222  
        TOTAL NONINTEREST EXPENSE   16,494       15,310  
                 
      Income before income taxes   11,288       11,617  
                 
    Provision for income taxes   2,584       2,327  
        NET INCOME $ 8,704     $ 9,290  
                 
    Basic and diluted earnings per share $ 0.77     $ 0.82  
                 
    Weighted average shares outstanding   11,331,884       11,269,874  
                 
     
    ORANGE COUNTY BANCORP, INC.
    NET INTEREST MARGIN ANALYSIS
    (UNAUDITED)
    (Dollar Amounts in thousands)
                           
      Three Months Ended March 31,
      2025   2024
      Average Balance   Interest   Average Rate   Average Balance   Interest   Average Rate
    Assets:                      
    Loans Receivable (net of PPP) $ 1,829,917     $ 27,311     6.05 %   $ 1,738,199     $ 25,611     5.91 %
    PPP Loans   163       3     7.46 %     209       3     5.76 %
    Investment securities   441,776       3,123     2.87 %     481,530       3,432     2.86 %
    Due from banks   146,657       1,353     3.74 %     149,596       1,665     4.46 %
    Other   7,979       117     5.95 %     10,894       362     13.33 %
    Total interest earning assets   2,426,492       31,907     5.33 %     2,380,428       31,073     5.24 %
    Non-interest earning assets   101,960               94,647          
    Total assets $ 2,528,452             $ 2,475,075          
                           
    Liabilities and equity:                      
    Interest-bearing demand accounts $ 357,057     $ 403     0.46 %   $ 360,287     $ 437     0.49 %
    Money market accounts   685,827       3,634     2.15 %     620,028       3,355     2.17 %
    Savings accounts   269,019       857     1.29 %     235,829       785     1.34 %
    Certificates of deposit   222,992       2,224     4.04 %     209,642       2,414     4.62 %
    Total interest-bearing deposits   1,534,895       7,118     1.88 %     1,425,786       6,991     1.97 %
    FHLB Advances and other borrowings   85,011       931     4.44 %     167,484       2,251     5.39 %
    Subordinated notes   19,597       230     4.76 %     19,526       230     4.72 %
    Total interest bearing liabilities   1,639,503       8,279     2.05 %     1,612,796       9,472     2.36 %
    Non-interest bearing demand accounts   667,564               668,439          
    Other non-interest bearing liabilities   29,907               28,446          
    Total liabilities   2,336,974               2,309,681          
    Total shareholders’ equity   191,478               165,394          
    Total liabilities and shareholders’ equity $ 2,528,452             $ 2,475,075          
                           
    Net interest income     $ 23,628             $ 21,601      
    Interest rate spread1         3.28 %           2.88 %
    Net interest margin2         3.95 %           3.64 %
    Average interest earning assets to interest-bearing liabilities   148.0 %             147.6 %        
                           
    Notes:                      
    1The Interest rate spread is the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities
    2Net interest margin is the annualized net interest income divided by average interest-earning assets
                           
                   
    ORANGE COUNTY BANCORP, INC.
    SELECTED RATIOS AND OTHER DATA
    (UNAUDITED)
     
          Three Months Ended March 31,
          2025   2024
    Performance Ratios:      
    Return on average assets (1) 1.38 %   1.50 %
    Return on average equity (1) 18.18 %   22.47 %
    Interest rate spread (2) 3.28 %   2.88 %
    Net interest margin (3) 3.95 %   3.64 %
    Dividend payout ratio (4) 16.92 %   13.95 %
    Non-interest income to average total assets 0.17 %   0.15 %
    Non-interest expenses to average total assets 0.65 %   0.62 %
    Average interest-earning assets to average interest-bearing liabilities 148.00 %   147.60 %
               
          At   At
          March 31, 2025   March 31, 2024
    Asset Quality Ratios:      
    Non-performing assets to total assets 0.24 %   0.24 %
    Non-performing loans to total loans 0.33 %   0.33 %
    Allowance for credit losses to non-performing loans 425.03 %   440.86 %
    Allowance for credit losses to total loans 1.42 %   1.47 %
               
    Capital Ratios (5):      
    Total capital (to risk-weighted assets) 15.42 %   14.74 %
    Tier 1 capital (to risk-weighted assets) 14.16 %   13.49 %
    Common equity tier 1 capital (to risk-weighted assets) 14.16 %   13.49 %
    Tier 1 capital (to average assets) 10.41 %   9.72 %
               
    Notes:        
    (1)   Annualized for the three month periods ended March 31, 2025 and 2024, respectively.
    (2)   Represents the difference between the weighted-average yield on interest-earning assets and the weighted-average cost of interest-bearing liabilities for the periods.
    (3)   The net interest margin represents net interest income as a percent of average interest-earning assets for the periods.
    (4)   The dividend payout ratio represents dividends paid per share divided by net income per share.
    (5)   Ratios are for the Bank only.
               
     
    ORANGE COUNTY BANCORP, INC.
    SELECTED OPERATING DATA
    (UNAUDITED)
    (Dollar Amounts in thousands except per share data)
      Three Months Ended March 31,
      2025   2024
    Interest income $ 31,907     $ 31,073  
    Interest expense   8,279       9,472  
    Net interest income   23,628       21,601  
    Provision for credit losses   202       (1,640 )
    Net interest income after provision for credit losses   23,426       23,241  
    Noninterest income   4,356       3,686  
    Noninterest expenses   16,494       15,310  
    Income before income taxes   11,288       11,617  
    Provision for income taxes   2,584       2,327  
    Net income $ 8,704     $ 9,290  
           
    Basic and diluted earnings per share $ 0.77     $ 0.82  
    Weighted average common shares outstanding   11,331,884       11,269,874  
           
      At   At
      March 31, 2025   December 31, 2024
    Book value per share $ 17.69     $ 16.35  
    Net tangible book value per share (1) $ 17.15     $ 15.80  
    Outstanding common shares   11,383,738       11,350,158  
           
    Notes:      
    (1)      Net tangible book value represents the amount of total tangible assets reduced by our total liabilities. Tangible assets are calculated by reducing total assets, as defined by GAAP, by $5,359 in goodwill and $750, and $821 in other intangible assets for March 31, 2025 and December 31, 2024, respectively.
           
     
    ORANGE COUNTY BANCORP, INC.
    LOAN COMPOSITION
    (UNAUDITED)
    (Dollar Amounts in thousands)
      At March 31, 2025   At December 31, 2024
      Amount   Percent   Amount   Percent
    Commercial and industrial (a) $ 247,284     13.34 %   $ 242,390     13.35 %
    Commercial real estate   1,381,719     74.52 %     1,362,054     75.01 %
    Commercial real estate construction   97,703     5.27 %     80,993     4.46 %
    Residential real estate   73,090     3.94 %     74,973     4.13 %
    Home equity   18,211     0.98 %     17,365     0.96 %
    Consumer   36,247     1.95 %     37,976     2.09 %
    Total loans   1,854,254     100.00 %     1,815,751     100.00 %
    Allowance for loan losses   26,373           26,077      
    Total loans, net $ 1,827,881         $ 1,789,674      
                   
    (a) – Includes PPP loans of: $ 159         $ 170      
                   
     
    ORANGE COUNTY BANCORP, INC.
    DEPOSITS BY ACCOUNT TYPE
    (UNAUDITED)
    (Dollar Amounts in thousands)
      At March 31, 2025   At December 31, 2024
      Amount   Percent   Average Rate   Amount   Percent   Average Rate
    Noninterest-bearing demand accounts $ 654,061     28.66 %   0.00 %   $ 651,135     30.24 %   0.00 %
    Interest bearing demand accounts   381,878     16.74 %   0.48 %     331,115     15.38 %   0.42 %
    Money market accounts   703,384     30.83 %   2.14 %     679,082     31.54 %   2.15 %
    Savings accounts   282,563     12.38 %   1.23 %     271,014     12.59 %   1.25 %
    Certificates of Deposit   259,812     11.39 %   3.93 %     221,013     10.26 %   3.97 %
    Total $ 2,281,698     100.00 %   1.34 %   $ 2,153,359     100.00 %   1.31 %
                           
     
    ORANGE COUNTY BANCORP, INC.
    NON-PERFORMING ASSETS
    (UNAUDITED)
      (Dollar Amounts in thousands)
           
      March 31, 2025   December 31, 2024
           
    Non-accrual loans:      
    Commercial and industrial $ 200     $ 293  
    Commercial real estate   6,000       6,000  
    Commercial real estate construction   –       –  
    Residential real estate   5       6  
    Home equity   –       –  
    Consumer   –       –  
    Total non-accrual loans   6,205       6,299  
    Accruing loans 90 days or more past due:      
    Commercial and industrial   –       –  
    Commercial real estate   –       –  
    Commercial real estate construction   –       –  
    Residential real estate   –       –  
    Home equity   –       –  
    Consumer   –       –  
    Total loans 90 days or more past due   –       –  
    Total non-performing loans   6,205       6,299  
    Other real estate owned   –       –  
    Other non-performing assets   –       –  
    Total non-performing assets $ 6,205     $ 6,299  
           
    Ratios:      
    Total non-performing loans to total loans   0.33 %     0.35 %
    Total non-performing loans to total assets   0.24 %     0.25 %
    Total non-performing assets to total assets   0.24 %     0.25 %
    Net-chargeoffs to total loans   0.00 %     0.00 %
           

    The MIL Network –

  • MIL-OSI: FinWise Bancorp Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    – Loan Originations of $1.3 Billion –

    – Net Income of $3.2 Million –

    – Diluted Earnings Per Share of $0.23 –

    MURRAY, Utah, April 30, 2025 (GLOBE NEWSWIRE) — FinWise Bancorp (NASDAQ: FINW) (“FinWise” or the “Company”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter ended March 31, 2025.

    First Quarter 2025 Highlights

    • Loan originations totaled $1.3 billion, compared to $1.3 billion for the quarter ended December 31, 2024, and $1.1 billion for the first quarter of the prior year
    • Net interest income was $14.3 million, compared to $15.5 million for the quarter ended December 31, 2024, and $14.0 million for the first quarter of the prior year
    • Net income was $3.2 million, compared to $2.8 million for the quarter ended December 31, 2024, and $3.3 million for the first quarter of the prior year
    • Diluted earnings per share (“EPS”) were $0.23 for the quarter, compared to $0.20 for the quarter ended December 31, 2024, and $0.25 for the first quarter of the prior year
    • Efficiency ratio1 was 64.8%, compared to 64.2% for the quarter ended December 31, 2024, and 61.0% for the first quarter of the prior year
    • Nonperforming loan balances were $29.9 million as of March 31, 2025, compared to $36.5 million as of December 31, 2024, and $26.0 million as of March 31, 2024. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $15.1 million, $19.2 million, and $14.8 million as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively

    “Our business model remained resilient in the first quarter, even amidst a more uncertain macro environment,” said Kent Landvatter, Chairman and CEO of FinWise. “We posted solid loan originations and encouraging credit quality metrics, as both non-performing loan balances and net charge-offs declined sequentially. Furthermore, we continued to migrate our loan portfolio to a lower risk profile while still growing profitably and increasing tangible book value. Subsequent to the end of the first quarter, we also announced a new strategic program agreement where FinWise will provide both lending and our Credit Enhanced Balance Sheet product. While we will continue to closely monitor the economic environment, we remain excited about the outlook for our business and will maintain our focus on executing our business strategy to continue to position the Company for long-term growth and shareholder value creation.”

    ________________
    1 See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this non-GAAP measure.


    Selected Financial and Other Data

      As of and for the Three Months Ended
    ($ in thousands, except per share amounts) 3/31/2025   12/31/2024   3/31/2024
    Amount of loans originated $ 1,264,604     $ 1,305,028     $ 1,091,479  
    Net income $ 3,189     $ 2,793     $ 3,315  
    Diluted EPS $ 0.23     $ 0.20     $ 0.25  
    Return on average assets   1.7 %     1.6 %     2.2 %
    Return on average equity   7.4 %     6.5 %     8.4 %
    Yield on loans   12.31 %     14.01 %     14.80 %
    Cost of interest-bearing deposits   4.01 %     4.30 %     4.71 %
    Net interest margin   8.27 %     10.00 %     10.12 %
    Efficiency ratio(1)   64.8 %     64.2 %     61.0 %
    Tangible book value per share(2) $ 13.42     $ 13.15     $ 12.70  
    Tangible shareholders’ equity to tangible assets(2)   22.0 %     23.3 %     26.6 %
    Leverage ratio (Bank under CBLR)   18.8 %     20.6 %     20.6 %
    Full-time equivalent employees   196       196       175  
                           

    (1)   This measure is not a measure recognized under United States generally accepted accounting principles, or GAAP, and is therefore considered to be a non-GAAP financial measure. See “Reconciliation of Non-GAAP to GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent.
    (2)   Tangible shareholders’ equity to tangible assets is considered a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.

    Net Interest Income
    Net interest income was $14.3 million for the first quarter of 2025, compared to $15.5 million for the prior quarter and $14.0 million for the prior year period. The decrease from the prior quarter was primarily due to a decrease in yields and a seasonal decline in origination volume on the three highest yielding programs in the held-for-sale portfolio of $0.5 million, a decrease in yield offset in part by an increase in volume on the remaining held-for-sale portfolio of $0.3 million, and a decrease in yields offset in part by the increase in volume of the held-for-investment portfolio as variable rate loans were repriced to reflect the decrease in the prime rate of $0.5 million. The increase from the prior year period was primarily due to an increase in average interest-earning assets of $143.7 million, partially offset by lower yields on interest-earning assets and an increase in the average interest-bearing liabilities of $119.6 million.

    Loan originations totaled $1.3 billion for the first quarter of 2025, compared to $1.3 billion for the prior quarter and $1.1 billion for the prior year period.

    Net interest margin for the first quarter of 2025 was 8.27%, compared to 10.00% for the prior quarter and 10.12% for the prior year period. The decrease in net interest margin from the prior quarter and prior year period is attributable to the seasonal decline in originations of the three highest yielding held-for-sale programs, the repricing of our variable rate loan portfolio as interest rates have declined, and the Company’s strategy to reduce the average credit risk in the loan portfolio by increasing its investment in higher quality but lower yielding loans offset by a reduction in the costs of funds.

    Provision for Credit Losses
    The Company’s provision for credit losses was $3.3 million for the first quarter of 2025, compared to $3.9 million for the prior quarter and $3.2 million for the prior year period. The decrease in the provision for credit losses from the prior quarter was mainly due to lower net charge-offs of $1.0 million predominately in the non-SP loan portfolio offset in part by increased reserves for the held-for-investment loan portfolio growth, net of changes in modeling assumptions of $0.5 million. The increase in the provision for credit losses from the prior year period was primarily due to growth in the loans held-for-investment portfolio.

    Non-interest Income

      Three Months Ended
    ($ in thousands) 3/31/2025   12/31/2024   3/31/2024
    Non-interest income          
    Strategic Program fees $ 4,962     $ 4,899     $ 3,965  
    Gain on sale of loans   846       872       415  
    SBA loan servicing fees, net   178       181       664  
    Change in fair value on investment in BFG   400       (200 )     (124 )
    Credit enhancement income   85       25       —  
    Other miscellaneous income   1,339       (174 )     742  
    Total non-interest income $ 7,810     $ 5,603     $ 5,662  
                           

    The increase in non-interest income from the prior quarter was due to an increase in other miscellaneous income resulting from a charge in the prior quarter of $0.9 million to remove unamortized premiums upon calling $160.0 million of callable certificates of deposits, growth in the Company’s operating lease portfolio, and an increased distribution received from BFG during the quarter. The Company also benefited from a favorable change in the fair value of our investment in BFG.

    The increase in non-interest income from the prior year period was primarily due to an increase in Strategic Program fees primarily due to higher originations, a favorable change in the fair value of our investment in BFG, and an increase in other miscellaneous income. The increase in other miscellaneous income from the prior year period was the result of increased revenue from growth in the Company’s operating lease portfolio and increased distributions received from BFG.

    Non-interest Expense

      Three Months Ended
    ($ in thousands) 3/31/2025   12/31/2024   3/31/2024
    Non-interest expense          
    Salaries and employee benefits $ 9,826     $ 9,375     $ 7,562  
    Professional services   907       556       1,567  
    Occupancy and equipment expenses   543       533       544  
    Credit enhancement expense   11       5       —  
    Other operating expenses   3,031       3,094       2,332  
    Total non-interest expense $ 14,318     $ 13,563     $ 12,005  
                           

    The increase in non-interest expense from the prior quarter resulted from increases in salaries and employee benefits and professional services. The salaries and employee benefits increase pertained mainly to an increase in federal employer payroll taxes of $0.4 million while the increase in professional services resulted from the reversal of over-accruals during the fourth quarter of 2024. The increase in non-interest expense from the prior year period was primarily due to an increase in salaries and employee benefits due mainly to increasing headcount and stock based compensation expense and other operating expenses driven by increased spending to support the growth in the Company’s business infrastructure.

    Reflecting the decreased net interest income and increase in operating expenses, the Company’s efficiency ratio was 64.8% for the first quarter of 2025, compared to 64.2% for the prior quarter and 61.0% for the prior year period. The Company anticipates the efficiency ratio will level off then begin to decline as revenues are realized in future periods from the credit enhanced loan, BIN sponsorship and payments initiatives developed during 2023 and 2024.

    Tax Rate
    The Company’s effective tax rate was 28.1% for the first quarter of 2025, compared to 24.3% for the prior quarter and 26.5% for the prior year period. The increases from the prior quarter and prior year period were due primarily to estimated permanent differences related to officer compensation.

    Net Income
    Net income was $3.2 million for the first quarter of 2025, compared to $2.8 million for the prior quarter and $3.3 million for the prior year period. The changes in net income for the three months ended March 31, 2025 compared to the prior quarter and prior year period are the result of the factors discussed above.

    Balance Sheet
    The Company’s total assets were $804.1 million as of March 31, 2025, an increase from $746.0 million as of December 31, 2024 and $610.8 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily due to continued growth in the Company’s loans held-for-investment, net, and loans held-for-sale portfolios of $24.6 million and $27.2 million, respectively, as well as an increase of $12.6 million in interest-bearing cash deposits. The increase in total assets compared to March 31, 2024 was primarily due to increases in the Company’s loans held-for-investment, net, and loans held-for-sale portfolios of $95.3 million and $63.8 million, respectively, as well as an increase in investment securities available-for-sale of $30.1 million. The increased loan balances are consistent with our strategy to grow the loan portfolio with higher quality lower risk assets.

    The following table shows the gross loans held-for-investment (“HFI”) balances as of the dates indicated:

      3/31/2025   12/31/2024   3/31/2024
    ($ in thousands) Amount   % of total
    loans    		   Amount   % of total
    loans    		   Amount   % of total
    loans
    SBA $ 246,004     50.0 %   $ 255,056     54.8 %   $ 247,810     63.4 %
    Commercial leases   76,823     15.6 %     70,153     15.1 %     46,690     11.9 %
    Commercial, non-real estate   3,550     0.7 %     3,691     0.8 %     2,077     0.5 %
    Residential real estate   55,814     11.3 %     51,574     11.1 %     39,006     10.0 %
    Strategic Program loans   19,916     4.1 %     20,122     4.3 %     17,216     4.4 %
    Commercial real estate:                      
    Owner occupied   65,920     13.4 %     41,046     8.8 %     21,300     5.4 %
    Non-owner occupied   1,390     0.3 %     1,379     0.3 %     2,155     0.6 %
    Consumer   22,806     4.6 %     22,212     4.8 %     14,689     3.8 %
    Total period end loans $ 492,223     100.0 %   $ 465,233     100.0 %   $ 390,943     100.0 %
                                             

    Note: SBA loans as of March 31, 2025, December 31, 2024 and March 31, 2024 include $150.0 million, $158.7 million and $141.7 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA. The HFI balance on Strategic Program loans with annual interest rates below 36% as of March 31, 2025, December 31, 2024 and March 31, 2024 was $3.8 million, $3.1 million and $2.7 million, respectively.

    Total gross loans HFI as of March 31, 2025 increased $27.0 million and $101.3 million compared to December 31, 2024 and March 31, 2024, respectively. The Company experienced growth primarily in its commercial real estate – owner occupied, commercial leases, and residential real estate loan portfolios, consistent with its strategy to increase its loan portfolio with higher quality, lower rate loans.

    The following table shows the Company’s deposit composition as of the dates indicated:

      As of
    ​ 3/31/2025   12/31/2024   3/31/2024
    ($ in thousands) Amount   Percent   Amount   Percent   Amount   Percent
    Noninterest-bearing demand deposits $ 123,322     20.4 %   $ 126,782     23.3 %   $ 107,076     25.3 %
    Interest-bearing deposits:                      
    Demand   83,410     13.8 %     71,403     13.1 %     48,279     11.4 %
    Savings   8,888     1.5 %     9,287     1.7 %     11,206     2.6 %
    Money market   17,939     2.9 %     16,709     3.0 %     9,935     2.3 %
    Time certificates of deposit   372,200     61.4 %     320,771     58.9 %     247,600     58.4 %
    Total period end deposits $ 605,759     100.0 %   $ 544,952     100.0 %   $ 424,096     100.0 %
                                             

    The increase in total deposits at March 31, 2025 from December 31, 2024 and March 31, 2024 was driven primarily by increases in brokered time certificates of deposits, which were added to fund loan growth and increase balance sheet liquidity. The increase in total deposits from March 31, 2024 was also driven primarily by an increase in noninterest-bearing demand deposits and interest-bearing demand deposits, primarily due to growth from new and existing customer relationships.

    Total shareholders’ equity as of March 31, 2025 increased $3.6 million to $177.4 million from $173.7 million at December 31, 2024. Compared to March 31, 2024, total shareholders’ equity increased by $14.9 million from $162.5 million. The increase from December 31, 2024 was primarily due to the Company’s net income and stock-based compensation. The increase from March 31, 2024 was primarily due to the Company’s net income as well as the additional capital issued in exchange for the Company’s increased ownership in BFG and stock-based compensation partially offset by the repurchase of common stock under the Company’s share repurchase program.

    Bank Regulatory Capital Ratios
    The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

      As of    
    Capital Ratios 3/31/2025   12/31/2024   3/31/2024   Well-Capitalized Requirement
    Leverage ratio 18.8%   20.6%   20.6%   9.0%
                   

    The decrease in the leverage ratio from the prior quarter and the prior year period primarily results from the growth in the loan portfolio exceeding the relative growth in capital from earnings. The Bank’s capital levels remain significantly above the regulatory well-capitalized guidelines as of March 31, 2025.

    Share Repurchase Program
    Since the share repurchase program’s inception in March 2024, the Company has repurchased and subsequently retired a total of 44,608 shares for $0.5 million. There were no shares repurchased during the first quarter of 2025.

    Asset Quality
    The recorded balances of nonperforming loans were $29.9 million, or 6.1% of total loans held-for-investment, as of March 31, 2025, compared to $36.5 million, or 7.8% of total loans held-for-investment, as of December 31, 2024 and $26.0 million, or 6.6% of total loans held-for-investment, as of March 31, 2024. The balances of nonperforming loans guaranteed by the SBA were $15.1 million, $19.2 million, and $14.8 million as of March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The decrease in nonperforming loans from the prior quarter was primarily attributable to an increase in principal repayments and payoffs. The increase in nonperforming loans from the prior year period was primarily attributable to loans in the SBA 7(a) loan portfolio being classified as non-accrual mainly due to the negative impact of elevated interest rates on the Company’s small business borrowers. The Company’s allowance for credit losses to total loans held-for-investment was 2.9% as of March 31, 2025 compared to 2.8% as of December 31, 2024 and 3.2% as of March 31, 2024. The slight increase in the ratio from the prior quarter was primarily due to growth in the allowance for credit losses attributable to the retained Strategic Program loans while the actual retained Strategic Program loan balances decreased from the prior quarter. The decrease in the ratio from the prior year period was primarily due to the respective balances of the guaranteed portion of the SBA 7(a) program loans, growth in the balances of lower risk owner-occupied CRE, leasing and other held-for-investment loan portfolios, and the shift in our Strategic Program held-for-investment loan balances to programs with lower historical losses.

    The Company’s net charge-offs were $2.2 million, $3.2 million and $3.4 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The decrease from the prior quarter is primarily due to prior quarter charge-offs of the unguaranteed portion of SBA loans as well as decreased net charge-offs in the Strategic Program loans portfolio. The decrease from the prior year period is primarily due to a decrease in charge-offs in the Strategic Program loans portfolio as well as increased recoveries during the first quarter of 2025.

    The following table presents a summary of changes in the allowance for credit losses and credit quality data for the periods indicated:

      Three Months Ended
    ​($ in thousands) 3/31/2025   12/31/2024   3/31/2024
    Allowance for credit losses:          
    Beginning balance $ 13,176     $ 12,661     $ 12,888  
    Provision for credit losses(1)   3,307       3,766       3,145  
    Charge offs          
    Construction and land development   —       —       —  
    Residential real estate   (7 )     (206 )     (64 )
    Residential real estate multifamily   —       —       —  
    Commercial real estate:          
    Owner occupied   (68 )     (411 )     (525 )
    Non-owner occupied   —       —       —  
    Commercial and industrial   (83 )     (555 )     (54 )
    Consumer   (11 )     (60 )     (41 )
    Lease financing receivables   (36 )     —       (111 )
    Strategic Program loans   (2,384 )     (2,528 )     (2,946 )
    Recoveries          
    Construction and land development   —       —       —  
    Residential real estate   3       6       53  
    Residential real estate multifamily   —       —       —  
    Commercial real estate:          
    Owner occupied   16       112       3  
    Non-owner occupied   —       —       —  
    Commercial and industrial   14       —       —  
    Consumer   3       1       —  
    Lease financing receivables   (33 )     77       —  
    Strategic Program loans   338       313       284  
    Ending Balance $ 14,235     $ 13,176     $ 12,632  
               
    Credit Quality Data As of and For the Three Months Ended
    ($ in thousands) 3/31/2025   12/31/2024   3/31/2024
    Nonperforming loans:          
    Guaranteed $ 15,147     $ 19,203     $ 14,765  
    Unguaranteed   14,737       17,281       11,231  
    Total nonperforming loans $ 29,884     $ 36,484     $ 25,996  
    Allowance for credit losses $ 14,235     $ 13,176     $ 12,632  
    Net charge offs $ 2,248     $ 3,249     $ 3,401  
    Total loans held-for-investment $ 492,223     $ 465,233     $ 390,943  
    Total loans held-for-investment less guaranteed balances $ 342,259     $ 306,483     $ 249,229  
    Average loans held-for-investment $ 485,780     $ 454,474     $ 387,300  
    Nonperforming loans to total loans held-for-investment   6.1 %     7.8 %     6.6 %
    Net charge offs to average loans held-for-investment (annualized)   1.9 %     2.8 %     3.5 %
    Allowance for credit losses to loans held-for-investment   2.9 %     2.8 %     3.2 %
    Allowance for credit losses to loans held-for-investment less guaranteed balances   4.2 %     4.3 %     5.1 %
                           

    (1)   Excludes the provision for unfunded commitments.

    Webcast and Conference Call Information
    FinWise will host a conference call today at 5:30 PM ET to discuss its financial results for the first quarter. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

    The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13752183. Please dial the number 10 minutes prior to the scheduled start time.

    A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

    Website Information
    The Company intends to use its website, www.finwisebancorp.com, as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Such disclosures will be included in the Company’s website’s Investor Relations section. Accordingly, investors should monitor the Investor Relations portion of the Company’s website, in addition to following its press releases, filings with the Securities and Exchange Commission (“SEC”), public conference calls, and webcasts. To subscribe to the Company’s e-mail alert service, please click the “Email Alerts” link in the Investor Relations section of its website and submit your email address. The information contained in, or that may be accessed through, the Company’s website is not incorporated by reference into or a part of this document or any other report or document it files with or furnishes to the SEC, and any references to the Company’s website are intended to be inactive textual references only.

    About FinWise Bancorp
    FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payment Solutions to fintech brands. The Company is expanding and diversifying its business model by incorporating Payments (MoneyRailsTM) and BIN Sponsorship offerings. Its existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. Through its compliance oversight and risk management-first culture, the Company is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

    Contacts
    investors@finwisebank.com
    media@finwisebank.com

    “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995
    This release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, future events and its financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about the Company’s industry and management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond the Company’s control. The inclusion of these forward-looking statements should not be regarded as a representation by the Company or any other person that such expectations, estimates and projections will be achieved. Accordingly, the Company cautions you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions and uncertainties that are difficult to predict. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

    There are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including, but not limited to, the following: (a) the success of the financial technology and banking-as-a-service (“BaaS”) industries, as well as the continued evolution of the regulation of these industries; (b) the ability of the Company’s Fintech Banking and Payment Solutions service providers to comply with regulatory regimes, and the Company’s ability to adequately oversee and monitor its Fintech Banking and Payment Solutions service providers; (c) the Company’s ability to maintain and grow its relationships with its service providers; (d) changes in the laws, rules, regulations, interpretations or policies relating to financial institutions, accounting, tax, trade, tariffs, monetary and fiscal matters, including the application of interest rate caps or maximums; (e) the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively; (f) system failure or cybersecurity breaches of the Company’s network security; (g) potential exposure to fraud, negligence, computer theft and cyber-crime and other disruptions in the Company’s computer systems relating to its development and use of new technology platforms; (h) the Company’s reliance on third-party service providers for core systems support, informational website hosting, internet services, online account opening and other processing services; (i) general economic, political and business conditions, either nationally or in the Company’s market areas; (j) increased national or regional competition in the financial services industry; (k) the Company’s ability to measure and manage its credit risk effectively and the potential deterioration of the business and economic conditions in the Company’s primary market areas; (l) the adequacy of the Company’s risk management framework; (m) the adequacy of the Company’s allowance for credit losses (“ACL”); (n) the financial soundness of other financial institutions; (o) changes in Small Business Administration (“SBA”) rules, regulations and loan products, including specifically the Section 7(a) program or changes to the status of the Bank as an SBA Preferred Lender; (p) changes in the existing regulatory framework for brokered deposits and potential reclassification of certain BaaS deposits as brokered deposits in light of proposed rulemaking or application of the current deposit framework by the Federal Deposit Insurance Corporation (“FDIC”) to the Bank’s BaaS deposits; (q) the value of collateral securing the Company’s loans; (r) the Company’s levels of nonperforming assets; (s) losses from loan defaults; (t) the Company’s ability to protect its intellectual property and the risks it faces with respect to claims and litigation initiated against the Company; (u) the Company’s ability to implement its growth strategy; (v) the Company’s ability to continue to launch new products or services successfully; (w) the concentration of the Company’s lending and depositor relationships through Strategic Programs in the financial technology industry generally; (x) interest rate, volatility and liquidity risks; (y) the effectiveness of the Company’s internal control over financial reporting and its ability to remediate any future material weakness in its internal control over financial reporting; (z) dependence on the Company’s management team and changes in management composition; (aa) the sufficiency of the Company’s capital; (bb) compliance with laws and regulations, supervisory actions, the Dodd-Frank Act, capital requirements, the Bank Secrecy Act and other anti-money laundering laws, predatory lending laws, and other statutes and regulations; (cc) the Company’s ability to maintain a strong core deposit base or other low-cost funding sources; (dd) results of examinations of the Company by its regulators; (ee) the Company’s involvement from time to time in legal proceedings; (ff) natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, and other matters beyond the Company’s control; (gg) future equity and debt issuances; (hh) that the anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make are not realized within the expected time frame or at all as a result of such things as the strength or weakness of the economy and competitive factors in the areas where the Company and such other businesses operate; (ii) further negative ratings outlooks or downgrades of the U.S.’s long-term credit rating, (jj) changes in legislative, regulatory or tax priorities, (kk) reductions in staffing at U.S. governmental agencies, (ll) potential government shutdowns or political impasses, including with respect to the U.S. debt ceiling and federal budget; and (mm) other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent reports on Form 10-Q and Form 8-K.

    The timing and amount of purchases under the Company’s share repurchase program will be determined by the Share Repurchase Committee based upon market conditions and other factors. Purchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require the Company to purchase any specific number or amount of shares and may be suspended or reinstated at any time in the Company’s discretion and without notice.

    Any forward-looking statement speaks only as of the date of this release, and the Company does not undertake any obligation to publicly update or review any forward-looking statement, whether because of new information, future developments or otherwise, except as required by law. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence. In addition, the Company cannot assess the impact of each risk and uncertainty on its business or the extent to which any risk or uncertainty, or combination of risks and uncertainties, may cause actual results to differ materially from those contained in any forward-looking statements.

     
    FINWISE BANCORP
    CONSOLIDATED BALANCE SHEETS
    ($ in thousands; Unaudited)
     
      3/31/2025   12/31/2024   3/31/2024
    ASSETS          
    Cash and cash equivalents          
    Cash and due from banks $ 8,155     $ 9,600     $ 3,944  
    Interest-bearing deposits   112,117       99,562       111,846  
    Total cash and cash equivalents   120,272       109,162       115,790  
    Investment securities available-for-sale, at fair value   30,138       29,930       —  
    Investment securities held-to-maturity, at cost   12,008       12,565       14,820  
    Investment in Federal Home Loan Bank (“FHLB”) stock, at cost   440       349       349  
    Strategic Program loans held-for-sale, at lower of cost or fair value   118,769       91,588       54,947  
    Loans held-for-investment, net   472,402       447,812       377,101  
    Credit enhancement asset   195       111       —  
    Premises and equipment, net   3,123       3,548       6,665  
    Accrued interest receivable   2,708       3,566       3,429  
    Deferred taxes, net   290       —       —  
    SBA servicing asset, net   3,331       3,273       4,072  
    Investment in Business Funding Group (“BFG”), at fair value   8,100       7,700       8,200  
    Operating lease right-of-use (“ROU”) assets   3,555       3,564       4,104  
    Income tax receivable, net   3,353       8,868       2,400  
    Other assets   25,445       23,939       18,956  
    Total assets $ 804,129     $ 745,976     $ 610,833  
    ​          
    LIABILITIES AND SHAREHOLDERS’ EQUITY          
    Liabilities          
    Deposits          
    Noninterest-bearing $ 123,322     $ 126,782     $ 107,076  
    Interest-bearing   482,437       418,170       317,020  
    Total deposits   605,759       544,952       424,096  
    Accrued interest payable   2,750       1,494       588  
    Income taxes payable, net   962       4,423       3,207  
    Deferred taxes, net   —       899       508  
    Operating lease liabilities   5,226       5,302       6,046  
    Other liabilities   12,071       15,186       13,906  
    Total liabilities   626,768       572,256       448,351  
               
    Shareholders’ equity          
    Common stock   13       13       13  
    Additional paid-in-capital   57,548       56,926       55,304  
    Retained earnings   119,781       116,594       107,165  
    Accumulated other comprehensive income, net of tax   19       187       —  
    Total shareholders’ equity   177,361       173,720       162,482  
    Total liabilities and shareholders’ equity $ 804,129     $ 745,976     $ 610,833  
     
    FINWISE BANCORP
    CONSOLIDATED STATEMENTS OF INCOME
    ($ in thousands, except per share amounts; Unaudited)
     
      Three Months Ended
      3/31/2025   12/31/2024   3/31/2024
    Interest income          
    Interest and fees on loans $ 17,155     $ 18,388     $ 16,035  
    Interest on securities   390       401       101  
    Other interest income   991       573       1,509  
    Total interest income   18,536       19,362       17,645  
               
    Interest expense          
    Interest on deposits   4,256       3,833       3,639  
    Total interest expense   4,256       3,833       3,639  
    Net interest income   14,280       15,529       14,006  
               
    Provision for credit losses   3,336       3,878       3,154  
    Net interest income after provision for credit losses   10,944       11,651       10,852  
               
    Non-interest income          
    Strategic Program fees   4,962       4,899       3,965  
    Gain on sale of loans, net   846       872       415  
    SBA loan servicing fees, net   178       181       664  
    Change in fair value on investment in BFG   400       (200 )     (124 )
    Credit enhancement income   85       25       —  
    Other miscellaneous (loss) income   1,339       (174 )     742  
    Total non-interest income   7,810       5,603       5,662  
               
    Non-interest expense          
    Salaries and employee benefits   9,826       9,375       7,562  
    Professional services   907       556       1,567  
    Occupancy and equipment expenses   543       533       544  
    Credit enhancement expense   11       5       —  
    Other operating expenses   3,031       3,094       2,332  
    Total non-interest expense   14,318       13,563       12,005  
    Income before income taxes   4,436       3,691       4,509  
               
    Provision for income taxes   1,247       897       1,194  
    Net income $ 3,189     $ 2,794     $ 3,315  
               
    Earnings per share, basic $ 0.24     $ 0.21     $ 0.26  
    Earnings per share, diluted $ 0.23     $ 0.20     $ 0.25  
               
    Weighted average shares outstanding, basic   12,716,155       12,659,986       12,502,448  
    Weighted average shares outstanding, diluted   13,483,647       13,392,411       13,041,605  
    Shares outstanding at end of period   13,216,903       13,211,640       12,793,555  
     
    FINWISE BANCORP
    AVERAGE BALANCES, YIELDS, AND RATES
    ($ in thousands; Unaudited)
     
    ​ Three Months Ended
    ​ 3/31/2025   12/31/2024   3/31/2024
      Average
    Balance    		   Interest   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest   Average
    Yield/
    Rate
    Interest earning assets:                                  
    Interest-bearing deposits $ 92,794   $ 991   4.33 %   $ 52,375   $ 573   4.35 %   $ 111,911   $ 1,509   5.42 %
    Investment securities   42,314     390   3.74 %     43,212     401   3.69 %     15,174     101   2.67 %
    Strategic Program loans held-for-sale   79,612     4,264   21.72 %     67,676     5,040   29.63 %     42,452     3,475   32.93 %
    Loans held-for-investment   485,780     12,891   10.76 %     454,474     13,348   11.68 %     387,300     12,560   13.04 %
    Total interest earning assets   700,500     18,536   10.73 %     617,737     19,362   12.47 %     556,837     17,645   12.74 %
    Noninterest-earning assets   54,184             55,767             39,123        
    Total assets $ 754,684           $ 673,504           $ 595,960        
    Interest-bearing liabilities:                                  
    Demand $ 76,403   $ 670   3.56 %   $ 57,305   $ 617   4.28 %   $ 51,603   $ 503   3.92 %
    Savings   9,247     7   0.30 %     9,192     9   0.40 %     9,301     19   0.83 %
    Money market accounts   17,884     163   3.70 %     15,726     147   3.73 %     10,200     66   2.60 %
    Certificates of deposit   326,920     3,416   4.24 %     272,799     3,060   4.46 %     239,577     3,051   5.12 %
    Total deposits   430,454     4,256   4.01 %     355,022     3,833   4.30 %     310,681     3,639   4.71 %
    Other borrowings   48     —   0.35 %     79     —   0.35 %     172     —   0.35 %
    Total interest-bearing liabilities   430,502     4,256   4.01 %     355,101     3,833   4.29 %     310,853     3,639   4.71 %
    Noninterest-bearing deposits   119,501             119,945             100,507        
    Noninterest-bearing liabilities   29,644             27,636             25,446        
    Shareholders’ equity   175,037             170,823             159,154        
    Total liabilities and shareholders’ equity $ 754,684           $ 673,505           $ 595,960        
    Net interest income and interest rate spread     $ 14,280   6.72 %       $ 15,529   8.18 %       $ 14,006   8.03 %
    Net interest margin         8.27 %           10.00 %           10.12 %
    Ratio of average interest-earning assets to average interest- bearing liabilities         162.72 %           173.96 %           179.13 %
     
    Reconciliation of Non-GAAP to GAAP Financial Measures
    (Unaudited)
     
    Efficiency ratio Three Months Ended
    ​($ in thousands) 3/31/2025   12/31/2024   3/31/2024
    Non-interest expense $ 14,318     $ 13,563     $ 12,005  
               
    Net interest income   14,280       15,529       14,006  
    Total non-interest income   7,810       5,603       5,662  
    Adjusted operating revenue $ 22,090     $ 21,132     $ 19,668  
    Efficiency ratio   64.8 %     64.2 %     61.0 %
                           

    FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement. When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the potential future recovery of those losses is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. Any remaining income on such loans in excess of the amounts retained by FinWise and placed in the deposit reserve account are paid to the Strategic Program service provider. Income on such loans in excess of amounts retained by FinWise are expensed for services provided by the Strategic Program service provider including its legal commitment to indemnify or reimburse all credit or fraud losses pursuant to credit enhancement agreements. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. See the following reconciliations of non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures. Similar amounts for periods prior to the quarter ended December 31, 2024 were immaterial and therefore not separately disclosed.

    The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on total interest income on loans held-for-investment and average yield on loans held-for-investment:

      As of and for the Three Months Ended   As of and for the Three Months Ended
    ($ in thousands; unaudited) 3/31/2025   12/31/2024
      Total
    Average
    Loans HFI    		   Total
    Interest
    Income on
    Loans HFI    		   Average
    Yield on
    Loans HFI    		   Total
    Average
    Loans HFI    		   Total
    Interest
    Income on
    Loans HFI    		   Average
    Yield on
    Loans HFI
    Before adjustment for credit enhancement $ 485,780     $ 12,891     10.76 %   $ 454,474     $ 13,348     11.68 %
    Less: credit enhancement expense       (11 )             (5 )    
    Net of adjustment for credit enhancement expenses $ 485,780     $ 12,880     10.76 %   $ 454,474     $ 13,343     11.68 %
                                               

    Total interest income on loans held-for-investment net of credit enhancement expense and the average yield on loans held-for-investment net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expense on total interest income on loans held-for-investment and the respective average yield on loans held-for-investment, the most directly comparable GAAP measures.

    The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement expenses on net interest income and net interest margin:

      As of and for the Three Months Ended   As of and for the Three Months Ended
      3/31/2025   12/31/2024
    ($ in thousands; unaudited) Total Average Interest-Earning Assets   Net Interest Income   Net Interest Margin   Total Average Interest-Earning Assets   Net Interest Income   Net Interest Margin
    Before adjustment for credit enhancement $ 700,500     $ 14,280     8.27 %   $ 617,737     $ 15,529     10.00 %
    Less: credit enhancement expense       (11 )             (5 )    
    Net of adjustment for credit enhancement expenses $ 700,500     $ 14,269     8.27 %   $ 617,737     $ 15,524     10.00 %
                                               

    Net interest income and net interest margin net of credit enhancement expense are non-GAAP measures that include the impact of credit enhancement expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

    Non-interest expenses less credit enhancement expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement expense on non-interest expense:

    ($ in thousands; unaudited) Three Months Ended
    March 31, 2025    		   Three Months Ended
    December 31, 2024
    Total non-interest expense $ 14,318     $ 13,564  
    Less: credit enhancement expense   (11 )     (5 )
    Total non-interest expense less credit enhancement expenses $ 14,307     $ 13,559  
                   

    Total non-interest expense less credit enhancement expense is a non-GAAP measure that illustrates the impact of credit enhancement expenses on non-interest expense, the most directly comparable GAAP measure.

    Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:

    ($ in thousands; unaudited) Three Months Ended
    March 31, 2025    		   Three Months Ended
    December 31, 2024
    Total non-interest income $ 7,810     $ 5,603  
    Less: credit enhancement income   (85 )     (25 )
    Total non-interest income less credit enhancement income $ 7,725     $ 5,578  
                   

    Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

    The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:

    ($ in thousands; unaudited)   As of March 31, 2025   As of December 31, 2024
    Allowance for credit losses   $ (14,235 )   $ (13,176 )
    Less: allowance for credit losses related to credit enhanced loans     (195 )     (111 )
    Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans   $ (14,040 )   $ (13,065 )
                     

    The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held-for-investment with credit enhancement as of March 31, 2025 and December 31, 2024 was approximately $1.3 million and $0.9 million, respectively.

    The MIL Network –

  • MIL-OSI: NCS Multistage Holdings, Inc. Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    First Quarter Results

    • Total revenues of $50.0 million, a 14% year-over-year improvement
    • Gross margin improved to 42% from 39%; adjusted gross margin improved to 44% from 40% in the first quarter of 2024
    • Net income of $4.1 million and diluted earnings per share of $1.51, an improvement compared to $2.1 million and diluted earnings per share of $0.82 one year ago
    • Adjusted EBITDA of $8.2 million, a $2.1 million year-over-year improvement
    • $23.0 million in cash and $7.6 million of total debt as of March 31, 2025

    HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (Nasdaq: NCSM) (the “Company,” “NCS,” “we” or “us”), a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies, today announced its results for the quarter ended March 31, 2025.

    Review and Outlook

    NCS’s Chief Executive Officer, Ryan Hummer commented, “NCS had a strong start to 2025, with total revenues and Adjusted EBITDA for the first quarter exceeding our expectations as provided in the last earnings call, led by our performance in Canada.

    Total revenues of $50.0 million increased by 14% year-over-year and 11% sequentially and represents our highest quarterly revenue since the first quarter of 2020. This is reflective of the consistent efforts of our team to deliver differentiated performance through the implementation of our core strategies.

    Our adjusted gross margin improved to 44% for the quarter, compared to 40% for the same period one year ago, as we benefitted from the higher revenue, including higher-margin international work in both the Middle East and the North Sea.

    Our Adjusted EBITDA was $8.2 million for the first quarter, an improvement of $2.1 million, or 35%, year-over-year. This demonstrates the operating leverage in our business and the benefits of our capital light operating model, as our Adjusted EBITDA margin for the first quarter of 2025 of 16% improved from 14% in the first quarter of 2024.

    This improved operating performance resulted in net income attributable to NCS of $4.1 million, or $1.51 per diluted share for the first quarter of 2025, a meaningful improvement as compared to $2.1 million and $0.82 per diluted share, respectively, for the same period in 2024.

    Our cash balance as of March 31, 2025, totaled $23.0 million and our net cash position was $15.4 million. Total liquidity was $49.8 million as of March 31, 2025, inclusive of our cash balance and availability under our undrawn revolving credit facility, an increase of $15.4 million compared to one year ago.

    We have not experienced a significant impact on our business from escalating global trade tensions, and we expect that to continue to be the case in the second quarter of 2025. However, such global trade tensions and potential additional U.S. tariffs — along with retaliatory measures by other countries — present risks to commodity prices that could result in lower drilling and completions activity as compared to our initial expectations for both the second half and full year in 2025. If sustained, such conditions may result in a more pronounced decrease in drilling and completion activity across these markets. In addition, we are evaluating options to mitigate the impact of potential cost increases from tariffs that have been imposed by the U.S. on products from China and on steel imports, in particular.

    I want to express my continued appreciation to our team at NCS and Repeat Precision. Our accomplishments and our upcoming opportunities reflect the talent, effort and dedication of our outstanding teams. We have the right people, the right technology, and the right strategies in place to deliver extraordinary outcomes to our customers, drive innovation in the industry and create value for our shareholders. We’ve had a good start for the year and remain cautiously optimistic about the remainder of 2025. Our strong balance sheet remains a strategic asset for NCS and we will react swiftly and decisively in response to changing market conditions and opportunities.”

    Financial Review

    Total revenues were $50.0 million for the quarter ended March 31, 2025 compared to $43.9 million for the first quarter of 2024. Revenue growth was driven primarily by an increase in Canadian product sales and increases in services revenue across all of our geographic regions, partially offset by a decline in U.S. product sales attributed to certain project delays. The increase in product and service sales for Canada reflects robust activity levels, particularly for fracturing systems completions, a trend that began in the fourth quarter of 2024 and continued throughout the first quarter. The increase in international service revenues was driven by Middle East tracer diagnostics projects and North Sea fracturing systems product sales and services. 

    Compared to the fourth quarter of 2024, total revenues increased by 11%, with an increase in Canada of 26% due to continued strong activity levels. This increase was partially offset by a decline of 34% in international revenues, primarily associated with the timing of tracer service work in the Middle East, and a 13% decline in U.S. revenues.

    Gross profit was $21.1 million, with a gross margin of 42%, for the first quarter of 2025, compared to $17.0 million, with a gross margin of 39%, for the first quarter of 2024. Gross margin for 2025 improved due to an increase in higher-margin international work in both the Middle East and North Sea, and increased product sales in Canada. We also benefitted from efficiencies related to our supply chain and our manufacturing/assembly operations, leveraging certain fixed costs and capitalizing on lean manufacturing strategies implemented over the last year. Adjusted gross profit, which we define as total revenues less total cost of sales, exclusive of depreciation and amortization (“DD&A”), was $21.9 million, or an adjusted gross margin of 44%, for the first quarter of 2025, compared to $17.6 million, or 40%, for the first quarter of 2024.

    Selling, general and administrative (“SG&A”) expenses totaled $16.2 million for the first quarter of 2025, an increase of $2.4 million compared to the same period in 2024. This increase in expense reflects a higher annual incentive bonus accrual year-over-year, higher professional fees and an increase in share-based compensation expense attributable to cash settled awards, which are remeasured at the balance sheet date based on the price of our common stock.

    Other income was $0.9 million for the first quarter of 2025 compared to $1.1 million for the first quarter of 2024. The decline in other income reflects the absence of a contribution from a technical services and assistance agreement with our local partner in Oman for the first quarter of 2025, as that program ended in November 2024. Partially offsetting this year-over year decrease was an increase in the royalty income earned from licensees for these periods.

    Net income was $4.1 million, or $1.51 per diluted share, for the quarter ended March 31, 2025 compared to net income of $2.1 million, or $0.82 per diluted share for the quarter ended March 31, 2024.

    Adjusted EBITDA was $8.2 million for the quarter ended March 31, 2025, an increase of $2.1 million compared to the same period a year ago. This improvement is primarily the result of an increase in Canada revenues and higher-margin international projects partially offset by an increase in SG&A expenses due to higher annual incentive bonus accruals. Adjusted EBITDA margin of 16% for the quarter ended March 31, 2025, compared to 14% for the same period a year ago. 

    Cash flow from operating activities for the three months ended March 31, 2025 was a use of cash of $(1.6) million, a $0.2 million improvement compared to the same period in 2024. For the three months ended March 31, 2025, free cash flow less distributions to non-controlling interest was a use of cash of $(2.1) million compared to a use of cash of $(2.5) million for the same period in 2024. The overall change in free cash flow was largely attributed to our operating results, change in net working capital including payment of incentive bonuses and cash-settled awards remeasured based on the price of our stock in the first quarter of 2025, and the absence of a distribution to our non-controlling interest in 2025, partially offset by an increase in net cash invested in capital expenditures.

    Liquidity and Capital Expenditures

    As of March 31, 2025, NCS had $23.0 million in cash, $7.6 million in total indebtedness related to finance lease obligations, and a borrowing base under the undrawn asset-based revolving credit facility (“ABL Facility”) of $26.8 million. Our working capital, defined as current assets minus current liabilities, was $85.2 million and $80.2 million as of March 31, 2025 and December 31, 2024, respectively.

    Net working capital, calculated as working capital, less cash and excluding the current maturities of long-term debt, was $64.4 million and $56.4 million as of March 31, 2025 and December 31, 2024, respectively. The increase in our net working capital was primarily attributable to an increase in accounts receivable and a decrease in accrued expenses due in part to payment of our 2024 incentive bonus in the first quarter of 2025, partially offset by an increase in accounts payable. 

    NCS incurred capital expenditures, net of proceeds from the sale of property and equipment, of $0.5 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively.

    EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are non-GAAP financial measures. For an explanation of these measures and a reconciliation, refer to “Non-GAAP Financial Measures” below.

    Conference Call

    The Company will host a conference call to discuss its first quarter 2025 results and updated guidance on Thursday, May 1, 2025 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). For those participants who wish to ask questions, please dial (800) 715-9871 (U.S. toll-free) or +1 (646) 307-1963 (international) and enter the Conference ID: 7182351. A listen-only option is also available through this link. Participants are encouraged to log in to the webcast or dial in to the conference call approximately ten minutes prior to the start time. To listen via live webcast, please visit the Investors section of the Company’s website, www.ncsmultistage.com.

    The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

    About NCS Multistage Holdings, Inc.

    NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods, or by the inclusion of forecasts or projections. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause our actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions and the following: declines in the level of oil and natural gas exploration and production activity in Canada, the United States and internationally; oil and natural gas price fluctuations; significant competition for our products and services that results in pricing pressures, reduced sales, or reduced market share; inability to successfully implement our strategy of increasing sales of products and services into the U.S. and international markets; loss of significant customers; losses and liabilities from uninsured or underinsured business activities and litigation; change in trade policy, including the impact of tariffs; our failure to identify and consummate potential acquisitions; the financial health of our customers including their ability to pay for products or services provided; our inability to integrate or realize the expected benefits from acquisitions; our inability to achieve suitable price increases to offset the impacts of cost inflation; loss of any of our key suppliers or significant disruptions negatively impacting our supply chain; risks in attracting and retaining qualified employees and key personnel; risks resulting from the operations of our joint venture arrangement; currency exchange rate fluctuations; impact of severe weather conditions; our inability to accurately predict customer demand, which may result in us holding excess or obsolete inventory; failure to comply with or changes to federal, state and local and non-U.S. laws and other regulations, including anti-corruption and environmental regulations, guidelines and regulations for the use of explosives; impairment in the carrying value of long-lived assets including goodwill; system interruptions or failures, including complications with our enterprise resource planning system, cybersecurity breaches, identity theft or other disruptions that could compromise our information; our inability to successfully develop and implement new technologies, products and services that align with the needs of our customers, including addressing the shift to more non-traditional energy markets as part of the energy transition and the adoption of artificial intelligence and machine learning; our inability to protect and maintain critical intellectual property assets, the inability to protect our current royalty income, or the losses and liabilities from adverse decisions in intellectual property disputes; loss of, or interruption to, our information and computer systems; our failure to establish and maintain effective internal control over financial reporting; restrictions on the availability of our customers to obtain water essential to the drilling and hydraulic fracturing processes; changes in legislation or regulation governing the oil and natural gas industry, including restrictions on emissions of greenhouse gases; our inability to meet regulatory requirements for use of certain chemicals by our tracer diagnostics business; the reduction in our ABL Facility borrowing base or our inability to comply with the covenants in our debt agreements; and our inability to obtain sufficient liquidity on reasonable terms, or at all and other factors discussed or referenced in our filings made from time to time with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Contact

    Mike Morrison
    Chief Financial Officer and Treasurer
    (281) 453-2222
    IR@ncsmultistage.com 

       
    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
    (Unaudited)    		  
       
        Three Months Ended  
        March 31,  
        2025     2024  
    Revenues                
    Product sales   $ 35,066     $ 31,758  
    Services     14,939       12,100  
    Total revenues     50,005       43,858  
    Cost of sales                
    Cost of product sales, exclusive of depreciation and amortization expense shown below     20,352       19,692  
    Cost of services, exclusive of depreciation and amortization expense shown below     7,798       6,595  
    Total cost of sales, exclusive of depreciation and amortization expense shown below     28,150       26,287  
    Selling, general and administrative expenses     16,195       13,830  
    Depreciation     1,204       1,073  
    Amortization     167       167  
    Income from operations     4,289       2,501  
    Other income (expense)                
    Interest expense, net     (42 )     (100 )
    Other income, net     883       1,137  
    Foreign currency exchange loss, net     (3 )     (498 )
    Total other income     838       539  
    Income before income tax     5,127       3,040  
    Income tax expense     673       487  
    Net income     4,454       2,553  
    Net income attributable to non-controlling interest     398       483  
    Net income attributable to NCS Multistage Holdings, Inc.   $ 4,056     $ 2,070  
    Earnings per common share                
    Basic earnings per common share attributable to NCS Multistage Holdings, Inc.   $ 1.58     $ 0.83  
    Diluted earnings per common share attributable to NCS Multistage Holdings, Inc.   $ 1.51     $ 0.82  
    Weighted average common shares outstanding                
    Basic     2,568       2,508  
    Diluted     2,686       2,539  
       
    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data)
    (Unaudited)    		  
                 
        March 31,     December 31,  
        2025     2024  
    Assets                
    Current assets                
    Cash and cash equivalents   $ 22,997     $ 25,880  
    Accounts receivable—trade, net     38,403       31,513  
    Inventories, net     40,756       40,971  
    Prepaid expenses and other current assets     1,852       2,063  
    Other current receivables     5,033       5,143  
    Total current assets     109,041       105,570  
    Noncurrent assets                
    Property and equipment, net     20,477       21,283  
    Goodwill     15,222       15,222  
    Identifiable intangibles, net     3,523       3,690  
    Operating lease assets     5,773       5,911  
    Deposits and other assets     660       712  
    Deferred income taxes, net     422       424  
    Total noncurrent assets     46,077       47,242  
    Total assets   $ 155,118     $ 152,812  
    Liabilities and Stockholders’ Equity                
    Current liabilities                
    Accounts payable—trade   $ 11,751     $ 8,970  
    Accrued expenses     5,348       8,351  
    Income taxes payable     1,103       683  
    Operating lease liabilities     1,676       1,602  
    Current maturities of long-term debt     2,250       2,141  
    Other current liabilities     1,737       3,672  
    Total current liabilities     23,865       25,419  
    Noncurrent liabilities                
    Long-term debt, less current maturities     5,370       6,001  
    Operating lease liabilities, long-term     4,662       4,891  
    Other long-term liabilities     207       206  
    Deferred income taxes, net     178       186  
    Total noncurrent liabilities     10,417       11,284  
    Total liabilities     34,282       36,703  
    Commitments and contingencies                
    Stockholders’ equity                
    Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at March 31, 2025 and December 31, 2024     —       —  
    Common stock, $0.01 par value, 11,250,000 shares authorized, 2,607,362 shares issued and 2,540,849 shares outstanding at March 31, 2025 and 2,563,979 shares issued and 2,507,430 shares outstanding at December 31, 2024     26       26  
    Additional paid-in capital     447,936       447,384  
    Accumulated other comprehensive loss     (87,615 )     (87,604 )
    Retained deficit     (254,968 )     (259,024 )
    Treasury stock, at cost, 66,513 shares at March 31, 2025 and 56,549 shares at December 31, 2024     (2,211 )     (1,943 )
    Total stockholders’ equity     103,168       98,839  
    Non-controlling interest     17,668       17,270  
    Total equity     120,836       116,109  
    Total liabilities and stockholders’ equity   $ 155,118     $ 152,812  
       
    NCS MULTISTAGE HOLDINGS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)    		  
       
      Three Months Ended  
      March 31,  
      2025   2024  
    Cash flows from operating activities            
    Net income $ 4,454   $ 2,553  
    Adjustments to reconcile net income to net cash used in operating activities:            
    Depreciation and amortization   1,371     1,240  
    Amortization of deferred loan costs   52     51  
    Share-based compensation   1,445     902  
    Provision for inventory obsolescence   (35 )   316  
    Deferred income tax expense   1     5  
    Gain on sale of property and equipment   (36 )   (172 )
    Provision for credit losses   42     —  
    Net foreign currency unrealized loss (gain)   (849 )   373  
    Proceeds from note receivable   —     61  
    Changes in operating assets and liabilities:            
    Accounts receivable—trade   (6,978 )   (10,282 )
    Inventories, net   200     1,521  
    Prepaid expenses and other assets   890     29  
    Accounts payable—trade   3,742     2,355  
    Accrued expenses   (3,003 )   130  
    Other liabilities   (3,273 )   (1,339 )
    Income taxes receivable/payable   332     377  
    Net cash used in operating activities   (1,645 )   (1,880 )
    Cash flows from investing activities            
    Purchases of property and equipment   (464 )   (299 )
    Purchase and development of software and technology   —     (13 )
    Proceeds from sales of property and equipment   13     176  
    Net cash used in investing activities   (451 )   (136 )
    Cash flows from financing activities            
    Payments on finance leases   (522 )   (449 )
    Line of credit borrowings   1,963     1,158  
    Payments of line of credit borrowings   (1,963 )   (602 )
    Treasury shares withheld   (268 )   (237 )
    Distribution to noncontrolling interest   —     (500 )
    Net cash used in financing activities   (790 )   (630 )
    Effect of exchange rate changes on cash and cash equivalents   3     (70 )
    Net change in cash and cash equivalents   (2,883 )   (2,716 )
    Cash and cash equivalents beginning of period   25,880     16,720  
    Cash and cash equivalents end of period $ 22,997   $ 14,004  
    Noncash investing and financing activities            
    Assets obtained in exchange for new finance lease liabilities $ —   $ 696  
    Assets obtained in exchange for new operating lease liabilities $ 244   $ —  
    NCS MULTISTAGE HOLDINGS, INC.
    REVENUES BY GEOGRAPHIC AREA
    (In thousands)
    (Unaudited)    		  
       
        Three Months Ended  
        March 31,  
        2025     2024  
    United States                
    Product sales   $ 6,867     $ 7,767  
    Services     2,505       2,244  
    Total United States     9,372       10,011  
    Canada                
    Product sales     26,843       22,675  
    Services     10,875       8,994  
    Total Canada     37,718       31,669  
    Other Countries                
    Product sales     1,356       1,316  
    Services     1,559       862  
    Total other countries     2,915       2,178  
    Total                
    Product sales     35,066       31,758  
    Services     14,939       12,100  
    Total revenues   $ 50,005     $ 43,858  

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands, except per share data)
    (Unaudited)

    Non-GAAP Financial Measures 

    EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital (our “non-GAAP financial measures”) are not defined under generally accepted accounting principles (“GAAP”), are not measures of net income, income from operations, gross profit and gross margin (inclusive of DD&A), cash provided by (used in) operating activities, working capital or any other performance measure derived in accordance with GAAP, and are subject to important limitations. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies in our industry and are not measures of performance calculated in accordance with GAAP. Our non-GAAP financial measures have important limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our financial performance as reported under GAAP, and they should not be considered as alternatives to net income, income from operations, gross profit, gross margin, cash provided by (used in) operating activities, working capital or any other performance measures derived in accordance with GAAP as measures of operating performance or as alternatives to cash flow from operating activities as measures of our liquidity.

    However, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, Free Cash Flow, Free Cash Flow Less Distributions to Non-Controlling Interest and Net Working Capital are key metrics that management uses to assess the period-to-period performance of our core business operations or metrics that enable investors to assess our performance from period to period relative to the performance of other companies that are not subject to such factors, or who may provide similar non-GAAP measures in their public disclosures.

    The tables below set forth reconciliations of our non-GAAP financial measures to the most directly comparable measures of financial performance calculated under GAAP:

    NET WORKING CAPITAL

    Net working capital is defined as total current assets, excluding cash and cash equivalents, minus total current liabilities, excluding current maturities of long-term debt. Net working capital excludes cash and cash equivalents and current maturities of long-term debt in order to evaluate the investments in working capital that we believe are required to support our business. We believe that net working capital is useful in analyzing the cash flow and working capital needs of the Company, including determining the efficiencies of our operations and our ability to readily convert assets into cash.

        March 31,     December 31,  
        2025     2024  
    Working capital   $ 85,176     $ 80,151  
    Cash and cash equivalents     (22,997 )     (25,880 )
    Current maturities of long term debt     2,250       2,141  
    Net working capital   $ 64,429     $ 56,412  

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands, except per share data)
    (Unaudited)

    ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN

    Adjusted gross profit is defined as total revenues minus cost of sales, exclusive of depreciation and amortization expense, which we present as a separate line item in our statement of operations. Adjusted gross margin represents adjusted gross profit as a percentage of total revenues.

        Three Months Ended  
        March 31,  
        2025     2024  
    Total revenues   $ 50,005     $ 43,858  
    Total cost of sales, exclusive of depreciation and amortization expense     28,150       26,287  
    Total depreciation and amortization associated with cost of sales     715       616  
    Gross Profit   $ 21,140     $ 16,955  
    Gross Margin     42 %     39 %
    Exclude total depreciation and amortization associated with cost of sales     (715 )     (616 )
    Adjusted Gross Profit   $ 21,855     $ 17,571  
    Adjusted Gross Margin     44 %     40 %

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands)
    (Unaudited)

    EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, AND ADJUSTED EBITDA LESS SHARE-BASED COMPENSATION

    EBITDA is defined as net income before interest expense, net, income tax expense and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items which we believe are not reflective of ongoing operating performance or which, in the case of share-based compensation, is non-cash in nature. Adjusted EBITDA Margin represents Adjusted EBITDA as a percentage of total revenues. Adjusted EBITDA Less Share-Based Compensation is defined as Adjusted EBITDA minus share-based compensation expense. We believe that Adjusted EBITDA is an important measure that excludes costs that do not reflect the Company’s ongoing operating performance, legal proceedings for intellectual property as further described below, and certain costs associated with our capital structure. We believe that Adjusted EBITDA Less Share-Based Compensation presents our financial performance in a manner that is comparable to the presentation provided by many of our peers.

    We periodically incur legal costs associated with the assertion of, or defense of, intellectual property, which we exclude from our definition of Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation, unless we believe that settlement will occur prior to any material legal spend (included in the table below as “Professional Fees”). Although these costs may recur between periods, depending on legal matters then outstanding or in process, we believe the timing of when these costs are incurred does not typically match the settlement or recoveries associated with such matters, and therefore, can distort our operating results. Similarly, we exclude from Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation the one-time settlement or recovery payment associated with these excluded legal matters when realized but would not exclude any go forward royalties or payments, if applicable. We expect to continue to incur these legal costs for current matters under appeal and for any future cases that may go to trial, provided that the amount will vary by period. 

        Three Months Ended  
        March 31,  
        2025     2024  
    Net income   $ 4,454     $ 2,553  
    Income tax expense     673       487  
    Interest expense, net     42       100  
    Depreciation     1,204       1,073  
    Amortization     167       167  
    EBITDA     6,540       4,380  
    Share-based compensation (a)     552       766  
    Professional fees (b)     989       253  
    Foreign currency exchange loss (c)     3       498  
    Other (d)     130       180  
    Adjusted EBITDA   $ 8,214     $ 6,077  
    Adjusted EBITDA Margin     16 %     14 %
    Adjusted EBITDA Less Share-Based Compensation   $ 7,662     $ 5,311  

    ___________________

    (a) Represents non-cash compensation charges related to share-based compensation granted to our officers, employees and directors.
    (b) Represents non-capitalizable costs of professional services primarily incurred or reversed in connection with our legal proceedings associated with the assertion of, or defense of, intellectual property as further described above as well as the cost incurred for the evaluation of potential strategic transactions. 
    (c) Represents realized and unrealized foreign currency exchange gains and losses primarily due to movement in the foreign currency exchange rates during the applicable periods.
    (d) Represents the impact of a research and development subsidy that is included in income tax expense in accordance with GAAP along with other charges and credits.

    NCS MULTISTAGE HOLDINGS, INC.
    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
    (In thousands)
    (Unaudited)

    FREE CASH FLOW AND FREE CASH FLOW LESS DISTRIBUTIONS TO NON-CONTROLLING INTEREST

    Free cash flow is defined as net cash provided by (used in) operating activities less purchases of property and equipment (inclusive of the purchase and development of software and technology) plus proceeds from sales of property and equipment, as presented in our consolidated statement of cash flows. We define free cash flow less distributions to non-controlling interest as free cash flow less amounts reported in the financing activities section of the statement of cash flows as distributions to non-controlling interest. We believe free cash flow is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures and other investment needs. We believe that free cash flow less distributions to non-controlling interest is useful because it provides information to investors regarding the cash that was available in the period that was in excess of our needs to fund our capital expenditures, other investment needs, and cash distributions to our joint venture partner.

        Three Months Ended  
        March 31,  
        2025     2024  
    Net cash used in operating activities   $ (1,645 )   $ (1,880 )
    Purchases of property and equipment     (464 )     (299 )
    Purchase and development of software and technology     —       (13 )
    Proceeds from sales of property and equipment     13       176  
    Free cash flow   $ (2,096 )   $ (2,016 )
    Distributions to non-controlling interest     —       (500 )
    Free cash flow less distributions to non-controlling interest   $ (2,096 )   $ (2,516 )

    The MIL Network –

  • MIL-OSI: SEACOR Marine Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) — SEACOR Marine Holdings Inc. (NYSE: SMHI) (the “Company” or “SEACOR Marine”), a leading provider of marine and support transportation services to offshore energy facilities worldwide, today announced results for its first quarter ended March 31, 2025.

    SEACOR Marine’s consolidated operating revenues for the first quarter of 2025 were $55.5 million, operating loss was $5.3 million, and direct vessel profit (“DVP”)(1) was $13.6 million. This compares to consolidated operating revenues of $62.8 million, operating loss of $10.6 million, and DVP of $14.7 million in the first quarter of 2024, and consolidated operating revenues of $69.8 million, operating income of $10.6 million, and DVP of $23.1 million in the fourth quarter of 2024.

    Notable first quarter items include:

    • 11.6% decrease in revenues from the first quarter of 2024 and a 20.5% decrease from the fourth quarter of 2024.
    • Average day rates of $18,825, a 1.1% decrease from the first quarter of 2024, and flat from the fourth quarter of 2024.
    • 60% utilization, a decrease from 62% in the first quarter of 2024 and from 72% in the fourth quarter of 2024.
    • DVP margin of 24.5%, an increase from 23.4% in the first quarter of 2024 and a decrease from 33.1% in the fourth quarter of 2024, due in part to $5.2 million of drydocking and major repairs during the first quarter of 2025 compared to $8.5 million in the first quarter of 2024 and $3.5 million in the fourth quarter of 2024, all of which are expensed as incurred.
    • Completed the sale of one 2005 built liftboat which had been in long-term layup for total proceeds of $7.5 million and a gain of $5.6 million.
    • At the end of the first quarter of 2025, the Company had three vessels as held for sale, consisting of two platform supply vessels (“PSVs”) and one fast supply vessel (“FSV”). The sales of these vessels closed in April 2025 for total proceeds of $33.2 million and a gain of $20.6 million, and the proceeds were used to (a) fund the repurchase of shares and warrants from Carlyle and (b) partially fund the construction of two new PSVs scheduled to deliver in the fourth quarter of 2026 and first quarter of 2027.

    For the first quarter of 2025, net loss was $15.5 million ($0.56 loss per basic and diluted share). This compares to a net loss for the first quarter of 2024 of $23.1 million ($0.84 loss per basic and diluted share). Sequentially, the first quarter 2025 results compare to a net loss of $26.2 million ($0.94 loss per basic and diluted share) in the fourth quarter of 2024. All per share calculations do not reflect the share and warrant repurchase that occurred on April 4, 2025 as further discussed below.

    Chief Executive Officer John Gellert commented:

    “The first quarter results reflect lower utilization during our seasonally low first quarter, as well as flat average rates compared to the last two quarters of 2024. We typically target maintenance, drydocking and repositioning activities during the first quarter to take advantage of seasonality. Such activities accounted for a higher percentage of our utilization loss this quarter compared to the first quarter of 2024, although the associated expenses were substantially down. Average rates held stable for a third consecutive quarter, despite continued market softness in the North Sea and the Gulf of America, as well as customer delays in Mexico.

    We continue to see healthy tendering activity in international markets where SEACOR Marine is active, such as South America, West Africa and the Middle East. We have reduced our exposure in the North Sea, and will be closely monitoring our customer activity in the U.S., particularly in the decommissioning market in the Gulf of America, as we enter the seasonally higher quarters of the year.

    As previously announced, on April 4, 2025, we repurchased shares and warrants representing 9.1% of the outstanding shares of common stock of the Company, assuming the full exercise of the warrants, from Carlyle. The aggregate purchase price was approximately $12.9 million. This was a unique opportunity to buy back a significant number of shares and warrants in a single block, and to simplify our capital structure by eliminating all outstanding warrants. We funded this repurchase with a portion of the proceeds from the sale of one PSV built in 2014 that was classified as held for sale at the end of the first quarter.

    I am confident about SEACOR Marine’s positioning for the rest of 2025, even in an unpredictable macro environment. We have mostly rotated out of markets with high spot exposure and/or lower specification assets. We have a modern fleet, with additional high specification vessels scheduled to deliver in less than two years.”
    ___________________

    (1)   Direct vessel profit (defined as operating revenues less operating costs and expenses, “DVP”) is the Company’s measure of segment profitability. DVP is a critical financial measure used by the Company to analyze and compare the operating performance of its regions, without regard to financing decisions (depreciation and interest expense for owned vessels vs. lease expense for lease vessels). DVP is also useful when comparing the Company’s global fleet performance against those of our competitors who may have differing fleet financing structures. DVP has material limitations as an analytical tool in that it does not reflect all of the costs associated with the ownership and operation of our fleet, and it should not be considered in isolation or used as a substitute for our results as reported under GAAP. See page 4 for reconciliation of DVP to GAAP Operating Income (Loss), its most comparable GAAP measure.
         

    SEACOR Marine provides global marine and support transportation services to offshore energy facilities worldwide. SEACOR Marine operates and manages a diverse fleet of offshore support vessels that deliver cargo and personnel to offshore installations, including offshore wind farms; assist offshore operations for production and storage facilities; provide construction, well work-over, offshore wind farm installation and decommissioning support; and carry and launch equipment used underwater in drilling and well installation, maintenance, inspection and repair. Additionally, SEACOR Marine’s vessels provide emergency response services and accommodations for technicians and specialists.

    Certain statements discussed in this release as well as in other reports, materials and oral statements that the Company releases from time to time to the public constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Generally, words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “believe,” “plan,” “target,” “forecast” and similar expressions are intended to identify forward-looking statements. Such forward-looking statements concern management’s expectations, strategic objectives, business prospects, anticipated economic performance and financial condition and other similar matters. Forward-looking statements are inherently uncertain and subject to a variety of assumptions, risks and uncertainties that could cause actual results to differ materially from those anticipated or expected by the management of the Company. These statements are not guarantees of future performance and actual events or results may differ significantly from these statements. Actual events or results are subject to significant known and unknown risks, uncertainties and other important factors, many of which are beyond the Company’s control and are described in the Company’s filings with the SEC. It should be understood that it is not possible to predict or identify all such factors. Given these risk factors, investors and analysts should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made. The Company disclaims any obligation or undertaking to provide any updates or revisions to any forward-looking statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which the forward-looking statement is based, except as required by law. It is advisable, however, to consult any further disclosures the Company makes on related subjects in its filings with the Securities and Exchange Commission, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K (if any). These statements constitute the Company’s cautionary statements under the Private Securities Litigation Reform Act of 1995.

    Please visit SEACOR Marine’s website at www.seacormarine.com for additional information.
    For all other requests, contact InvestorRelations@seacormarine.com

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
    (in thousands, except share data)
     
        Three Months Ended March 31,  
        2025     2024  
    Operating Revenues   $ 55,499     $ 62,770  
    Costs and Expenses:            
    Operating     41,928       48,099  
    Administrative and general     11,486       11,917  
    Lease expense     337       481  
    Depreciation and amortization     12,810       12,882  
          66,561       73,379  
    Gains (Losses) on Asset Dispositions and Impairments, Net     5,809       (1 )
    Operating Loss     (5,253 )     (10,610 )
    Other Income (Expense):            
    Interest income     436       593  
    Interest expense     (9,586 )     (10,309 )
    Derivative gains (losses), net     125       (543 )
    Foreign currency losses, net     (1,196 )     (80 )
    Other, net     —       (95 )
          (10,221 )     (10,434 )
    Loss Before Income Tax Expense and Equity in Earnings (Losses) of 50% or Less Owned Companies     (15,474 )     (21,044 )
    Income Tax Expense     904       925  
    Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies     (16,378 )     (21,969 )
    Equity in Earnings (Losses) of 50% or Less Owned Companies     889       (1,100 )
    Net Loss   $ (15,489 )   $ (23,069 )
                 
    Net Loss Per Share:            
    Basic   $ (0.56 )   $ (0.84 )
    Diluted   $ (0.56 )   $ (0.84 )
    Weighted Average Common Stock and Warrants Outstanding:            
    Basic     27,908,297       27,343,604  
    Diluted     27,908,297       27,343,604  
                     
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
    (in thousands, except statistics and per share data)
     
      Three Months Ended
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    Time Charter Statistics:                            
    Average Rates Per Day $ 18,825     $ 18,901     $ 18,879     $ 19,141     $ 19,042  
    Fleet Utilization   60 %     72 %     67 %     69 %     62 %
    Fleet Available Days (2)   4,583       4,870       5,026       4,994       5,005  
    Operating Revenues:                            
    Time charter $ 51,933     $ 66,095     $ 63,313     $ 65,649     $ 59,263  
    Bareboat charter   708       364       372       364       364  
    Other marine services   2,858       3,349       5,231       3,854       3,143  
        55,499       69,808       68,916       69,867       62,770  
    Costs and Expenses:                            
    Operating:                            
    Personnel   18,537       20,365       21,940       21,566       21,670  
    Repairs and maintenance   8,520       10,433       9,945       10,244       9,763  
    Drydocking   3,869       2,467       6,068       6,210       6,706  
    Insurance and loss reserves   2,153       2,473       2,584       3,099       1,738  
    Fuel, lubes and supplies   4,546       4,884       6,574       3,966       4,523  
    Other   4,303       6,104       5,796       4,435       3,699  
        41,928       46,726       52,907       49,520       48,099  
    Direct Vessel Profit (1)   13,571       23,082       16,009       20,347       14,671  
    Other Costs and Expenses:                            
    Lease expense   337       347       364       486       481  
    Administrative and general   11,486       10,888       11,019       10,889       11,917  
    Depreciation and amortization   12,810       12,879       12,928       12,939       12,882  
        24,633       24,114       24,311       24,314       25,280  
    Gains (Losses) on Asset Dispositions and Impairments, Net   5,809       11,624       1,821       37       (1 )
    Operating (Loss) Income   (5,253 )     10,592       (6,481 )     (3,930 )     (10,610 )
    Other Income (Expense):                            
    Interest income   436       372       358       445       593  
    Interest expense   (9,586 )     (10,001 )     (10,127 )     (10,190 )     (10,309 )
    Derivative gains (losses), net   125       (536 )     67       104       (543 )
    Loss on debt extinguishment   —       (31,923 )     —       —       —  
    Foreign currency (losses) gains, net   (1,196 )     1,308       (1,717 )     (560 )     (80 )
    Other, net   —       187       29       —       (95 )
        (10,221 )     (40,593 )     (11,390 )     (10,201 )     (10,434 )
    Loss Before Income Tax Expense (Benefit) and Equity in Earnings (Losses) of 50% or Less Owned Companies   (15,474 )     (30,001 )     (17,871 )     (14,131 )     (21,044 )
    Income Tax Expense (Benefit)   904       (2,345 )     (513 )     (682 )     925  
    Loss Before Equity in Earnings (Losses) of 50% or Less Owned Companies   (16,378 )     (27,656 )     (17,358 )     (13,449 )     (21,969 )
    Equity in Earnings (Losses) of 50% or Less Owned Companies   889       1,430       1,012       966       (1,100 )
    Net Loss $ (15,489 )   $ (26,226 )   $ (16,346 )   $ (12,483 )   $ (23,069 )
                                 
    Net Loss Per Share:                            
    Basic $ (0.56 )   $ (0.94 )   $ (0.59 )   $ (0.45 )   $ (0.84 )
    Diluted $ (0.56 )   $ (0.94 )   $ (0.59 )   $ (0.45 )   $ (0.84 )
    Weighted Average Common Stock and Warrants Outstanding:                            
    Basic   27,908       27,773       27,773       27,729       27,344  
    Diluted   27,908       27,773       27,773       27,729       27,344  
    Common Shares and Warrants Outstanding at Period End   29,488       28,950       28,950       28,941       28,906  

    _______________
    (1) See full description of footnote above.
    (2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT
    (in thousands, except statistics)
     
      Three Months Ended
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    United States, primarily Gulf of America                            
    Time Charter Statistics:                            
    Average rates per day worked $ 23,874     $ 26,116     $ 17,188     $ 22,356     $ 28,156  
    Fleet utilization   25 %     45 %     42 %     37 %     27 %
    Fleet available days   1,121       920       920       921       927  
    Out-of-service days for repairs, maintenance and drydockings   153       75       116       179       137  
    Out-of-service days for cold-stacked status (2)   173       184       175       127       182  
    Operating Revenues:                            
    Time charter $ 6,765     $ 10,744     $ 6,593     $ 7,697     $ 6,957  
    Other marine services   235       1,114       1,188       480       1,026  
        7,000       11,858       7,781       8,177       7,983  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel   6,486       6,097       6,297       6,284       5,781  
    Repairs and maintenance   1,479       1,680       1,655       1,879       1,404  
    Drydocking   1,066       1,451       2,615       2,570       1,968  
    Insurance and loss reserves   702       854       799       943       396  
    Fuel, lubes and supplies   819       854       964       866       667  
    Other   349       229       225       226       (171 )
        10,901       11,165       12,555       12,768       10,045  
    Direct Vessel (Loss) Profit (1) $ (3,901 )   $ 693     $ (4,774 )   $ (4,591 )   $ (2,062 )
    Other Costs and Expenses:                            
    Lease expense $ 136     $ 136     $ 140     $ 141     $ 138  
    Depreciation and amortization   3,705       3,196       3,194       3,194       2,750  
                                 
    Africa and Europe                            
    Time Charter Statistics:                            
    Average rates per day worked $ 17,294     $ 16,895     $ 18,875     $ 18,580     $ 15,197  
    Fleet utilization   70 %     73 %     77 %     74 %     76 %
    Fleet available days   1,710       1,856       1,990       1,969       1,775  
    Out-of-service days for repairs, maintenance and drydockings   382       180       203       203       238  
    Out-of-service days for cold-stacked status   —       —       58       91       91  
    Operating Revenues:                            
    Time charter $ 20,835     $ 22,999     $ 28,809     $ 27,047     $ 20,555  
    Other marine services   852       1,027       3,048       1,028       169  
        21,687       24,026       31,857       28,075       20,724  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel   5,183       5,654       6,083       4,969       5,181  
    Repairs and maintenance   3,462       3,712       3,455       3,161       3,209  
    Drydocking   1,241       835       681       1,226       2,032  
    Insurance and loss reserves   594       577       599       819       334  
    Fuel, lubes and supplies   2,180       2,226       2,514       1,170       1,287  
    Other   2,727       3,748       3,975       2,801       2,199  
        15,387       16,752       17,307       14,146       14,242  
    Direct Vessel Profit (1) $ 6,300     $ 7,274     $ 14,550     $ 13,929     $ 6,482  
    Other Costs and Expenses:                            
    Lease expense $ 63     $ 82     $ 75     $ 172     $ 178  
    Depreciation and amortization   4,402       4,477       4,540       4,565       3,915  

    _______________
    (1) See full description of footnote above.
    (2) Includes one FSV cold-stacked in this region as of March 31, 2025.

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED DIRECT VESSEL PROFIT (“DVP”) BY SEGMENT (continued)
    (in thousands, except statistics)
     
      Three Months Ended  
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    Middle East and Asia                            
    Time Charter Statistics:                            
    Average rates per day worked $ 17,848     $ 17,337     $ 17,825     $ 17,083     $ 16,934  
    Fleet utilization   75 %     88 %     71 %     82 %     71 %
    Fleet available days   1,170       1,266       1,288       1,296       1,365  
    Out-of-service days for repairs, maintenance and drydockings   82       30       229       168       224  
    Operating Revenues:                            
    Time charter $ 15,710     $ 19,385     $ 16,411     $ 18,073     $ 16,477  
    Other marine services   292       635       375       619       350  
        16,002       20,020       16,786       18,692       16,827  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel   4,927       5,470       5,769       6,930       5,963  
    Repairs and maintenance   2,505       3,574       3,318       3,443       2,712  
    Drydocking   1,031       (226 )     832       707       1,483  
    Insurance and loss reserves   702       804       927       798       618  
    Fuel, lubes and supplies   883       840       1,043       1,103       1,198  
    Other   881       1,305       1,131       989       1,000  
        10,929       11,767       13,020       13,970       12,974  
    Direct Vessel Profit (1) $ 5,073     $ 8,253     $ 3,766     $ 4,722     $ 3,853  
    Other Costs and Expenses:                            
    Lease expense $ 83     $ 72     $ 73     $ 71     $ 85  
    Depreciation and amortization   3,230       3,272       3,261       3,247       3,496  
                                 
    Latin America                            
    Time Charter Statistics:                            
    Average rates per day worked $ 22,084     $ 21,390     $ 21,984     $ 22,437     $ 28,308  
    Fleet utilization   67 %     73 %     63 %     71 %     58 %
    Fleet available days (2)   582       828       828       808       938  
    Out-of-service days for repairs, maintenance and drydockings   —       20       94       41       1  
    Operating Revenues:                            
    Time charter $ 8,623     $ 12,967     $ 11,500     $ 12,832     $ 15,274  
    Bareboat charter   708       364       372       364       364  
    Other marine services   1,479       573       620       1,727       1,598  
        10,810       13,904       12,492       14,923       17,236  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel   1,941       3,144       3,791       3,383       4,745  
    Repairs and maintenance   1,074       1,467       1,517       1,761       2,438  
    Drydocking   531       407       1,940       1,707       1,223  
    Insurance and loss reserves   155       238       259       539       390  
    Fuel, lubes and supplies   664       964       2,053       827       1,371  
    Other   346       822       465       419       671  
        4,711       7,042       10,025       8,636       10,838  
    Direct Vessel Profit (1) $ 6,099     $ 6,862     $ 2,467     $ 6,287     $ 6,398  
    Other Costs and Expenses:                            
    Lease expense $ 55     $ 57     $ 76     $ 102     $ 80  
    Depreciation and amortization   1,473       1,934       1,933       1,933       2,721  

    _______________
    (1) See full description of footnote above.
    (2) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED PERFORMANCE BY VESSEL CLASS
    (in thousands, except statistics)
     
      Three Months Ended
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    AHTS                            
    Time Charter Statistics:                            
    Average rates per day worked $ —     $ 10,410     $ 10,316     $ 8,125     $ 8,538  
    Fleet utilization   — %     79 %     46 %     49 %     75 %
    Fleet available days   —       178       334       364       364  
    Out-of-service days for repairs, maintenance and drydockings   —       28       87       29       —  
    Out-of-service days for cold-stacked status   —       —       58       91       91  
    Operating Revenues:                            
    Time charter $ 15     $ 1,465     $ 1,576     $ 1,459     $ 2,331  
    Other marine services   9       —       13       219       —  
        24       1,465       1,589       1,678       2,331  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel $ 1     $ 595     $ 981     $ 1,045     $ 1,064  
    Repairs and maintenance   38       128       239       465       220  
    Drydocking   —       5       436       280       68  
    Insurance and loss reserves   —       49       66       97       43  
    Fuel, lubes and supplies   66       25       90       69       616  
    Other   12       210       263       230       287  
        117       1,012       2,075       2,186       2,298  
    Other Costs and Expenses:                            
    Lease expense $ —     $ 7     $ 4     $ 164     $ 171  
    Depreciation and amortization   4       122       175       175       175  
                                 
    FSV                            
    Time Charter Statistics:                            
    Average rates per day worked $ 13,786     $ 13,643     $ 13,102     $ 12,978     $ 11,834  
    Fleet utilization   71 %     72 %     81 %     80 %     72 %
    Fleet available days   1,980       2,024       2,024       2,002       2,002  
    Out-of-service days for repairs, maintenance and drydockings   135       118       96       128       216  
    Out-of-service days for cold-stacked status   90       92       83       36       91  
    Operating Revenues:                            
    Time charter $ 19,357     $ 19,992     $ 21,606     $ 20,698     $ 17,081  
    Other marine services   762       416       1,012       516       126  
        20,119       20,408       22,618       21,214       17,207  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel $ 4,933     $ 5,078     $ 5,637     $ 5,829     $ 5,649  
    Repairs and maintenance   2,983       4,480       4,378       4,572       3,093  
    Drydocking   353       426       448       457       1,869  
    Insurance and loss reserves   517       422       532       546       277  
    Fuel, lubes and supplies   1,173       1,586       1,962       993       1,051  
    Other   1,782       2,456       2,238       1,850       1,649  
        11,741       14,448       15,195       14,247       13,588  
    Other Costs and Expenses:                            
    Depreciation and amortization $ 4,932     $ 4,746     $ 4,744     $ 4,746     $ 4,744  
                                           
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED PERFORMANCE BY VESSEL CLASS (continued)
    (in thousands, except statistics)
     
      Three Months Ended
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    PSV                            
    Time Charter Statistics:                            
    Average rates per day worked $ 19,424     $ 17,912     $ 21,819     $ 20,952     $ 19,133  
    Fleet utilization   55 %     72 %     58 %     66 %     53 %
    Fleet available days (1)   1,890       1,932       1,932       1,900       1,911  
    Out-of-service days for repairs, maintenance and drydockings   396       117       349       291       307  
    Operating Revenues:                            
    Time charter $ 20,286     $ 24,865     $ 24,488     $ 26,390     $ 19,390  
    Bareboat charter   708       364       372       364       364  
    Other marine services   508       1,561       2,855       2,266       416  
        21,502       26,790       27,715       29,020       20,170  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel $ 8,351     $ 8,999     $ 9,360     $ 8,979     $ 8,850  
    Repairs and maintenance   3,949       4,101       3,798       3,151       4,393  
    Drydocking   2,513       1,046       2,629       2,616       3,386  
    Insurance and loss reserves   631       618       636       1,037       395  
    Fuel, lubes and supplies   2,594       2,379       3,594       1,575       1,889  
    Other   2,018       2,566       2,821       1,850       1,395  
        20,056       19,709       22,838       19,208       20,308  
    Other Costs and Expenses:                            
    Lease expense $ —     $ —     $ (3 )   $ 3     $ —  
    Depreciation and amortization   4,133       4,122       4,117       4,128       4,073  

    _______________
    (1) Includes available days for a bareboat charter for one PSV, which has been excluded from days worked and average day rates.

    SEACOR MARINE HOLDINGS INC.
    UNAUDITED PERFORMANCE BY VESSEL CLASS (continued)
    (in thousands, except statistics)
     
      Three Months Ended
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    Liftboats                            
    Time Charter Statistics:                            
    Average rates per day worked $ 39,559     $ 39,326     $ 36,423     $ 43,204     $ 53,506  
    Fleet utilization   44 %     68 %     58 %     54 %     53 %
    Fleet available days   713       736       736       728       728  
    Out-of-service days for repairs, maintenance and drydockings   87       41       109       143       78  
    Out-of-service days for cold-stacked status   83       92       92       91       91  
    Operating Revenues:                            
    Time charter $ 12,275     $ 19,773     $ 15,643     $ 17,102     $ 20,461  
    Other marine services   1,289       1,177       1,142       666       1,772  
        13,564       20,950       16,785       17,768       22,233  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel $ 5,247     $ 5,678     $ 5,926     $ 6,842     $ 6,140  
    Repairs and maintenance   1,571       1,722       1,531       2,054       2,035  
    Drydocking   1,003       990       2,555       2,857       1,383  
    Insurance and loss reserves   1,241       1,384       1,334       1,482       1,282  
    Fuel, lubes and supplies   712       894       928       1,329       967  
    Other   482       860       473       519       343  
        10,256       11,528       12,747       15,083       12,150  
    Other Costs and Expenses:                            
    Depreciation and amortization   3,719       3,866       3,866       3,865       3,866  
                                 
    Other Activity                            
    Operating Revenues:                            
    Other marine services $ 290     $ 195     $ 209     $ 187     $ 829  
        290       195       209       187       829  
    Direct Costs and Expenses:                            
    Operating:                            
    Personnel $ 5     $ 15     $ 36     $ (1,129 )   $ (33 )
    Repairs and maintenance   (21 )     2       (1 )     2       22  
    Insurance and loss reserves   (236 )     —       16       (63 )     (259 )
    Fuel, lubes and supplies   1       —       —       —       —  
    Other   9       12       1       (14 )     25  
        (242 )     29       52       (1,204 )     (245 )
    Other Costs and Expenses:                            
    Lease expense $ 337     $ 340     $ 363     $ 319     $ 310  
    Depreciation and amortization   22       23       26       25       24  
                                           
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
     
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    ASSETS                            
    Current Assets:                            
    Cash and cash equivalents $ 42,988     $ 59,491     $ 35,601     $ 40,605     $ 59,593  
    Restricted cash   2,440       16,649       2,263       2,255       2,566  
    Receivables:                            
    Trade, net of allowance for credit loss   63,946       69,888       76,497       70,770       58,272  
    Other   8,811       7,913       7,841       6,210       12,210  
    Tax receivable   1,602       1,601       983       983       983  
    Inventories   2,827       2,760       3,139       3,117       2,516  
    Prepaid expenses and other   6,075       4,406       4,840       5,659       3,425  
    Assets held for sale   12,195       10,943       —       500       500  
    Total current assets   140,884       173,651       131,164       130,099       140,065  
    Property and Equipment:                            
    Historical cost   881,961       900,414       921,445       921,443       919,139  
    Accumulated depreciation   (365,422 )     (367,448 )     (362,604 )     (349,799 )     (337,001 )
        516,539       532,966       558,841       571,644       582,138  
    Construction in progress   27,248       11,904       11,935       11,518       13,410  
    Net property and equipment   543,787       544,870       570,776       583,162       595,548  
    Right-of-use asset – operating leases   3,293       3,436       3,575       3,683       3,988  
    Right-of-use asset – finance leases   28       36       19       28       29  
    Investments, at equity, and advances to 50% or less owned companies   4,507       3,541       2,046       2,641       3,122  
    Other assets   1,665       1,577       1,864       1,953       2,094  
    Total assets $ 694,164     $ 727,111     $ 709,444     $ 721,566     $ 744,846  
    LIABILITIES AND EQUITY                            
    Current Liabilities:                            
    Current portion of operating lease liabilities $ 540     $ 606     $ 494     $ 861     $ 1,285  
    Current portion of finance lease liabilities   11       17       17       26       33  
    Current portion of long-term debt   30,000       27,500       28,605       28,605       28,605  
    Accounts payable   28,445       29,236       22,744       17,790       23,453  
    Other current liabilities   16,414       27,683       28,808       23,795       21,067  
    Total current liabilities   75,410       85,042       80,668       71,077       74,443  
    Long-term operating lease liabilities   2,926       2,982       3,221       3,276       3,390  
    Long-term finance lease liabilities   17       20       4       5       —  
    Long-term debt   310,108       317,339       272,325       277,740       281,989  
    Deferred income taxes   20,312       22,037       26,802       30,083       33,873  
    Deferred gains and other liabilities   1,356       1,369       1,416       1,447       2,285  
    Total liabilities   410,129       428,789       384,436       383,628       395,980  
    Equity:                            
    SEACOR Marine Holdings Inc. stockholders’ equity:                            
    Common stock   293       287       287       286       286  
    Additional paid-in capital   480,904       479,283       477,661       476,020       474,433  
    Accumulated deficit   (196,089 )     (180,600 )     (154,374 )     (138,028 )     (125,609 )
    Shares held in treasury   (9,628 )     (8,110 )     (8,110 )     (8,110 )     (8,071 )
    Accumulated other comprehensive income, net of tax   8,234       7,141       9,223       7,449       7,506  
        283,714       298,001       324,687       337,617       348,545  
    Noncontrolling interests in subsidiaries   321       321       321       321       321  
    Total equity   284,035       298,322       325,008       337,938       348,866  
    Total liabilities and equity $ 694,164     $ 727,111     $ 709,444     $ 721,566     $ 744,846  
                                           
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
     
            Three Months Ended
      Mar. 31, 2025     Dec. 31, 2024     Sep. 30, 2024     Jun. 30, 2024     Mar. 31, 2024  
    Cash Flows from Operating Activities:                            
    Net Loss $ (15,489 )   $ (26,226 )   $ (16,346 )   $ (12,483 )   $ (23,069 )
    Adjustments to reconcile net loss to net cash (used in) provided by operating activities:                            
    Depreciation and amortization   12,810       12,879       12,928       12,939       12,882  
    Deferred financing costs amortization   43       254       298       297       295  
    Stock-based compensation expense   1,627       1,622       1,604       1,587       1,645  
    Debt discount amortization   226       1,799       2,061       1,993       1,926  
    Allowance for credit losses   (407 )     59       101       39       3  
    (Gains) losses from equipment sales, retirements or impairments   (5,809 )     (11,624 )     (1,821 )     (37 )     1  
    Losses on debt extinguishment   —       28,252       —       —       —  
    Derivative (gains) losses   (125 )     536       (67 )     (104 )     543  
    Interest on finance lease   1       2       —       1       —  
    Settlements on derivative transactions, net   (373 )     —       —       —       164  
    Currency losses (gains)   1,196       (1,308 )     1,717       560       80  
    Deferred income taxes   (1,725 )     (4,766 )     (3,281 )     (3,790 )     (1,845 )
    Equity (earnings) losses   (889 )     (1,430 )     (1,012 )     (966 )     1,100  
    Dividends received from equity investees   —       —       1,498       1,418       —  
    Changes in Operating Assets and Liabilities:                            
    Accounts receivables   5,333       5,448       (7,411 )     (6,928 )     4,291  
    Other assets   (1,681 )     1,338       1,032       (2,395 )     (1,290 )
    Accounts payable and accrued liabilities   (6,204 )     1,693       9,325       (4,378 )     (3,895 )
    Net cash (used in) provided by operating activities   (11,466 )     8,528       626       (12,247 )     (7,169 )
    Cash Flows from Investing Activities:                            
    Purchases of property and equipment   (20,795 )     (3,010 )     (210 )     (658 )     (3,416 )
    Proceeds from disposition of property and equipment   8,472       22,441       2,331       86       —  
    Net cash (used in) provided by investing activities   (12,323 )     19,431       2,121       (572 )     (3,416 )
    Cash Flows from Financing Activities:                            
    Payments on long-term debt   (5,000 )     (2,479 )     (7,770 )     (6,533 )     (7,530 )
    Payments on debt extinguishment   —       (328,712 )     —       —       —  
    Payments on debt extinguishment cost   —       (3,671 )     —       —       —  
    Proceeds from issuance of long-term debt, net of debt discount and issuance costs   (396 )     345,192       —       —       —  
    Payments on finance leases   (9 )     (13 )     (10 )     (9 )     (9 )
    Proceeds from exercise of stock options and warrants   —       —       38       102       —  
    Tax withholdings on restricted stock vesting   (1,518 )     —       —       (39 )     (3,850 )
    Net cash (used in) provided by financing activities   (6,923 )     10,317       (7,742 )     (6,479 )     (11,389 )
    Effects of Exchange Rate Changes on Cash, Restricted Cash and Cash Equivalents   —       —       (1 )     (1 )     2  
    Net Change in Cash, Restricted Cash and Cash Equivalents   (30,712 )     38,276       (4,996 )     (19,299 )     (21,972 )
    Cash, Restricted Cash and Cash Equivalents, Beginning of Period   76,140       37,864       42,860       62,159       84,131  
    Cash, Restricted Cash and Cash Equivalents, End of Period $ 45,428     $ 76,140     $ 37,864     $ 42,860     $ 62,159  
                                           
    SEACOR MARINE HOLDINGS INC.
    UNAUDITED FLEET COUNTS
     
        Owned     Managed     Total  
    March 31, 2025                  
    AHTS     —       2       2  
    FSV     22       1       23  
    PSV     21       —       21  
    Liftboats     7       —       7  
          50       3       53  
    December 31, 2024                  
    AHTS     —       2       2  
    FSV     22       1       23  
    PSV     21       —       21  
    Liftboats     8       —       8  
          51       3       54  
                             

    The MIL Network –

  • MIL-OSI: Medallion Bank Reports 2025 First Quarter Results and Declares Series F Preferred Stock Dividend

    Source: GlobeNewswire (MIL-OSI)

    SALT LAKE CITY, April 30, 2025 (GLOBE NEWSWIRE) — Medallion Bank (Nasdaq: MBNKP, the “Bank”), an FDIC-insured bank providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners, announced today its results for the quarter ended March 31, 2025. The Bank is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

    2025 First Quarter Highlights

    • Net income of $15.6 million, compared to $14.5 million in the prior year quarter.
    • Net interest income of $52.2 million, compared to $48.2 million in the prior year quarter.
    • Net interest margin of 8.35%, compared to 8.59% in the prior year quarter.
    • Total provision for credit losses was $19.0 million, compared to $17.0 million in the prior year quarter.
    • Annualized net charge-offs were 3.41% of average loans outstanding, compared to 3.38% in the prior year quarter.
    • Annualized return on assets and return on equity were 2.51% and 16.49%, respectively, compared to 2.59% and 16.47%, respectively, for the prior year period.
    • The total loan portfolio grew 6% from March 31, 2024 to $2.2 billion as of March 31, 2025.
    • Total assets were $2.5 billion and the Tier 1 leverage ratio was 16.0% at March 31, 2025.

    Donald Poulton, President and Chief Executive Officer of Medallion Bank, stated, “Our performance was strong in the first quarter. Our earnings were $15.6 million, which was 8% higher than the prior year quarter and in line with the fourth quarter 2024. Economic uncertainty reduced demand in both recreation and home improvement lending, while strategic partnership volumes grew to $136 million from $124 million in the fourth quarter as those relationships continued to mature. Charge-offs and delinquencies were down from their year-end peaks, but given recent market volatility, and potential tariff and economic changes, we added qualitative factors to our reserve that increased credit loss provisions. Following the end of the quarter, we completed an initial sale of $53 million in recreation loans at a premium to par value. We were pleased with the execution of this sale and continue to monitor the market for potential loan sale opportunities. Overall, we view the quarter as a good mix of conservative origination volume and improving credit performance to start 2025.”

    Recreation Lending Segment

    • Excluding loans held for sale, the Bank’s recreation loan portfolio grew 5% to $1.432 billion as of March 31, 2025, compared to $1.365 billion at March 31, 2024. Loan originations were $86.8 million, compared to $105.8 million in the prior year quarter.
    • Recreation loans were 64% of loans receivable as of March 31, 2025, essentially unchanged from 64% at March 31, 2024.
    • Net interest income was $39.2 million, compared to $35.6 million in the prior year quarter.
    • Delinquencies 30 days or more past due were $68.2 million, or 4.76%, of recreation loans as of March 31, 2025, compared to $55.5 million, or 4.06%, at March 31, 2024.
    • Annualized net charge-offs were 4.67% of average recreation loans outstanding, compared to 4.36% in the prior year quarter.
    • The provision for recreation credit losses was $16.9 million and the allowance for credit losses was 5.00% of the outstanding balance, compared to $17.0 million and 4.40% of the outstanding balance in the prior year quarter.

    Home Improvement Lending Segment

    • The Bank’s home improvement loan portfolio grew 8% to $812.4 million as of March 31, 2025, compared to $752.3 million at March 31, 2024. Loan originations were $48.8 million, compared to $51.6 million in the prior year quarter.
    • Home improvement loans were 36% of loans receivable as of March 31, 2025, compared to 35% at March 31, 2024.
    • Net interest income was $13.3 million, compared to $12.4 million in the prior year quarter.
    • Delinquencies 30 days or more past due were $8.3 million, or 1.02%, of home improvement loans as of March 31, 2025, compared to $6.5 million, or 0.87%, at March 31, 2024.
    • Annualized net charge-offs were 1.55% of average home improvement loans outstanding, compared to 2.12% in the prior year quarter.
    • The provision for home improvement credit losses was $2.8 million and the allowance for credit losses was 2.49% of the outstanding balance, compared to $0.9 million and 2.38% of the outstanding balance in the prior year quarter.

    Series F Preferred Stock Dividend

    On April 24, 2025, the Bank’s Board of Directors declared a quarterly cash dividend of $0.67982 per share on the Bank’s Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F, which trades on the Nasdaq Capital Market under the ticker symbol “MBNKP.” The dividend is based on the dividend rate of 10.75761%, as determined by the Bank’s calculation agent, and is payable on July 1, 2025, to holders of record at the close of business on June 16, 2025.

    About Medallion Bank

    Medallion Bank specializes in providing consumer loans for the purchase of recreational vehicles, boats, and home improvements, along with loan origination services to fintech strategic partners. The Bank works directly with thousands of dealers, contractors and financial service providers serving their customers throughout the United States. Medallion Bank is a Utah-chartered, FDIC-insured industrial bank headquartered in Salt Lake City and is a wholly owned subsidiary of Medallion Financial Corp. (Nasdaq: MFIN).

    For more information, visit www.medallionbank.com

    Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, costs, sales (including loan sales), net investment income, earnings, returns and growth. These statements are often, but not always, made through the use of words or phrases such as “remains,” “anticipated,” “continue,” “expect,” “may,” “maintain,” “potential” or the negative versions of these words or other comparable words or phrases of a future or forward-looking nature. These statements may relate to our future earnings, returns, capital levels, sources of funding, growth prospects, asset quality and pursuit and execution of our strategy. Medallion Bank’s actual results may differ significantly from the results discussed in such forward-looking statements. For a description of certain risks to which Medallion Bank is or may be subject, please refer to the factors discussed under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” included in Medallion Bank’s Form 10-K for the year ended December 31, 2024, and in its Quarterly Reports on Form 10-Q, filed with the FDIC. Medallion Bank’s Form 10-K, Form 10-Qs and other FDIC filings are available in the Investor Relations section of Medallion Bank’s website. Medallion Bank’s financial results for any period are not necessarily indicative of Medallion Financial Corp.’s results for the same period.

    Company Contact:
    Investor Relations
    212-328-2176
    InvestorRelations@medallion.com

    MEDALLION BANK
    STATEMENTS OF OPERATIONS
    (UNAUDITED)
      Three Months Ended March 31,
    (In thousands)   2025     2024  
    Interest income      
    Loan interest including fees $ 70,617   $ 61,424  
    Investments   1,217     1,544  
    Total interest income   71,834     62,968  
    Interest expense   19,617     14,753  
    Net interest income   52,217     48,215  
    Provision for credit losses   19,038     17,002  
    Net interest income after provision for credit losses   33,179     31,213  
    Other non-interest income   1,681     602  
    Non-interest expense      
    Salaries and benefits   5,348     4,984  
    Loan servicing   3,154     2,867  
    Collection costs   1,492     1,404  
    Regulatory fees   821     977  
    Professional fees   610     432  
    Information technology   322     267  
    Occupancy and equipment   727     207  
    Other   910     752  
    Total non-interest expense   13,384     11,890  
    Income before income taxes   21,476     19,925  
    Provision for income taxes   5,837     5,445  
    Net income $ 15,639   $ 14,480  
    Less: Preferred stock dividends   1,512     1,512  
    Net income attributable to common shareholder $ 14,127   $ 12,968  
                 
    MEDALLION BANK
    BALANCE SHEETS
               
      (UNAUDITED)       (UNAUDITED)
               
    (In thousands) March 31, 2025   December 31, 2024   March 31, 2024
    Assets          
    Cash and federal funds sold $ 115,108     $ 126,196     $ 136,705  
    Investment securities, available-for-sale   60,424       54,805       53,038  
    Loans held for sale, at the lower of amortized cost or fair value   124,733       128,226       —  
               
    Loan receivables, inclusive of net deferred loan acquisition cost and fees   2,243,991       2,249,614       2,121,180  
    Allowance for credit losses   (91,807 )     (91,638 )     (78,648 )
    Loans, net   2,152,184       2,157,976       2,042,532  
    Loan collateral in process of foreclosure   3,174       3,326       3,263  
    Fixed assets and right-of-use lease assets, net   8,543       9,126       8,417  
    Deferred tax assets   13,860       14,036       12,500  
    Accrued interest receivable   14,339       15,083       13,405  
    Other assets   38,598       40,325       36,656  
    Total assets $ 2,530,963     $ 2,549,099     $ 2,306,516  
    Liabilities and Shareholders’ Equity          
    Liabilities          
    Deposits and other funds borrowed $ 2,087,828     $ 2,125,071     $ 1,899,061  
    Accrued interest payable   4,557       5,586       4,191  
    Income tax payable   23,853       17,951       26,336  
    Other liabilities   22,702       17,204       17,837  
    Due to affiliates   881       910       481  
    Total liabilities   2,139,821       2,166,722       1,947,906  
    Shareholder’s Equity          
    Series E Preferred stock   26,303       26,303       26,303  
    Series F Preferred stock   42,485       42,485       42,485  
    Common stock   1,000       1,000       1,000  
    Additional paid in capital   77,500       77,500       77,500  
    Accumulated other comprehensive loss, net of tax   (3,842 )     (4,480 )     (4,680 )
    Retained earnings   247,696       239,569       216,002  
    Total shareholders’ equity   391,142       382,377       358,610  
    Total liabilities and shareholders’ equity $ 2,530,963     $ 2,549,099     $ 2,306,516  

    The MIL Network –

  • MIL-OSI: FormFactor, Inc. Reports 2025 First Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    LIVERMORE, Calif., April 30, 2025 (GLOBE NEWSWIRE) — FormFactor, Inc. (Nasdaq: FORM) today announced its financial results for the first quarter of fiscal 2025 ended March 29, 2025. Quarterly revenues were $171.4 million, a decrease of 9.6% compared to $189.5 million in the fourth quarter of fiscal 2024, and an increase of 1.6% from $168.7 million in the first quarter of fiscal 2024.

    • Foundry & Logic first-quarter demand increased low single digits sequentially
    • Experienced reduction in DRAM as export controls limited FormFactor’s ability to ship probe cards for advanced node designs to China
    • Closed acquisition of minority interest in FICT Limited, a key supplier of advanced probe card components

    “As expected, FormFactor reported sequentially lower first-quarter revenue and profitability due to anticipated reductions in demand for both DRAM probe cards and Systems,” said Mike Slessor, CEO of FormFactor, Inc. “Longer-term, we remain confident in the growth prospects for FormFactor and the semiconductor industry overall, driven by the fundamental trends of Advanced Packaging, High-Bandwidth-Memory, and Co-Packaged Optics.”

    The company also announced that its Board of Directors has authorized a $75 million stock repurchase plan. This new stock repurchase authorization will expire April 23, 2027, and may be suspended, modified or discontinued at any time. Under the new repurchase authorization, repurchases may be made both in the open market and through privately negotiated transactions.

    First Quarter Highlights

    On a GAAP basis, net income for the first quarter of fiscal 2025 was $6.4 million, or $0.08 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2024 of $9.7 million, or $0.12 per fully-diluted share, and net income for the first quarter of fiscal 2024 of $21.8 million, or $0.28 per fully-diluted share. Gross margin for the first quarter of 2025 was 37.7%, compared with 38.8% in the fourth quarter of 2024, and 37.2% in the first quarter of 2024.

    On a non-GAAP basis, net income for the first quarter of fiscal 2025 was $18.0 million, or $0.23 per fully-diluted share, compared to net income for the fourth quarter of fiscal 2024 of $21.3 million, or $0.27 per fully-diluted share, and net income for the first quarter of fiscal 2024 of $14.3 million, or $0.18 per fully-diluted share. On a non-GAAP basis, gross margin for the first quarter of 2025 was 39.2%, compared with 40.2% in the fourth quarter of 2024, and 38.7% in the first quarter of 2024.

    A reconciliation of GAAP to non-GAAP measures is provided in the schedules included below.

    GAAP net cash provided by operating activities for the first quarter of fiscal 2025 was $23.5 million, compared to $35.9 million for the fourth quarter of fiscal 2024, and $33.0 million for the first quarter of fiscal 2024. Free cash flow for the first quarter of fiscal 2025 was $6.3 million, compared to free cash flow for the fourth quarter of fiscal 2024 of $28.8 million, and free cash flow for the first quarter of 2024 of $19.7 million. A reconciliation of net cash provided by operating activities to non-GAAP free cash flow is provided in the schedules included below.

    Outlook

    Dr. Slessor added, “Although our sequential growth outlook is tempered by the uncertainty created by the current tariff situation, we expect to deliver double-digit sequential revenue growth, with increases across all our major served markets and segments.”

    For the second quarter ending June 28, 2025, FormFactor is providing the following outlook*:

        GAAP   Reconciling Items**   Non-GAAP
    Revenue   $190 million +/- $5 million     —   $190 million +/- $5 million
    Gross Margin   38.5% +/- 1.5%   $3 million   40% +/- 1.5%
    Net income per diluted share   $0.18 +/- $0.04     $0.12   $0.30 +/- $0.04
     
    *This outlook assumes consistent foreign currency rates.
    **Reconciling items are stock-based compensation, amortization of intangible assets and fixed asset fair value adjustments due to acquisitions, and restructuring charges, net of applicable income tax impacts.
     

    We posted our revenue breakdown by geographic region, by market segment and with customers with greater than 10% of total revenue on the Investor Relations section of our website at www.formfactor.com. We will conduct a conference call at 1:25 p.m. PT, or 4:25 p.m. ET, today.

    The public is invited to listen to a live webcast of FormFactor’s conference call on the Investor Relations section of our website at www.formfactor.com. A telephone replay of the conference call will be available approximately two hours after the conclusion of the call. The replay will be available on the Investor Relations section of our website, www.formfactor.com.

    Use of Non-GAAP Financial Information:

    To supplement our condensed consolidated financial results prepared under generally accepted accounting principles, or GAAP, we disclose certain non-GAAP measures of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow, that are adjusted from the nearest GAAP financial measure to exclude certain costs, expenses, gains and losses. Reconciliations of the adjustments to GAAP results for the three and three months ended March 29, 2025, and for outlook provided before, as well as for the comparable periods of fiscal 2024, are provided below, and on the Investor Relations section of our website at www.formfactor.com. Information regarding the ways in which management uses non-GAAP financial information to evaluate its business, management’s reasons for using this non-GAAP financial information, and limitations associated with the use of non-GAAP financial information, is included under “About our Non-GAAP Financial Measures” following the tables below.

    About FormFactor:

    FormFactor, Inc. (NASDAQ: FORM), is a leading provider of essential test and measurement technologies along the full semiconductor product life cycle – from characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor’s products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America. For more information, visit the Company’s website at www.formfactor.com.

    Forward-looking Statements:

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws, including with respect to the Company’s future financial and operating results, and the Company’s plans, strategies and objectives for future operations. These statements are based on management’s current expectations and beliefs as of the date of this release, and are subject to a number of risks and uncertainties, many of which are beyond the Company’s control, that could cause actual results to differ materially from those described in the forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding future financial and operating results, including under the heading “Outlook” above, market trends, conditions in and the growth of the semiconductor industry and the Company’s performance, and other statements regarding the Company’s business. Forward-looking statements may contain words such as “may,” “might,” “will,” “expect,” “plan,” “anticipate,” “forecast,” “continue,” and “prospect,” and the negative or plural of these words and similar expressions, and include the assumptions that underlie such statements. The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: changes in and impacts from export control, tariffs and other trade barriers; changes in demand for the Company’s products; customer-specific demand; market opportunity; anticipated industry trends; the availability, benefits, and speed of customer acceptance or implementation of new products and technologies; manufacturing, processing, and design capacity, goals, expansion, volumes, and progress; difficulties or delays in research and development; industry seasonality; risks to the Company’s realization of benefits from acquisitions; reliance on customers or third parties (including suppliers); changes in macro-economic environments; events affecting global and regional economic and market conditions and stability such as tariffs, military conflicts, political volatility, infectious diseases and pandemics, and similar factors, operating separately or in combination; and other factors, including those set forth in the Company’s most current annual report on Form 10-K, quarterly reports on Form 10-Q and other filings by the Company with the U.S. Securities and Exchange Commission. In addition, there are varying barriers to international trade, including restrictive trade and export regulations such as the US-China restrictions, dynamic tariffs, trade disputes between the U.S. and other countries, and national security developments or tensions, that may substantially restrict or condition our sales to or in certain countries, increase the cost of doing business internationally, and disrupt our supply chain. No assurances can be given that any of the events anticipated by the forward-looking statements within this press release will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Unless required by law, the Company is under no obligation (and expressly disclaims any such obligation) to update or revise its forward-looking statements whether as a result of new information, future events, or otherwise.

    Investor Contact:
    Stan Finkelstein
    Investor Relations
    (925) 290-4273
    ir@formfactor.com

    FORMFACTOR, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share amounts)
    (Unaudited)
       
      Three Months Ended
      March 29,
    2025    		   December 28,
    2024    		   March 30,
    2024
    Revenues $ 171,356   $ 189,483   $ 168,725  
    Cost of revenues   106,833     115,903     105,987  
    Gross profit   64,523     73,580     62,738  
    Operating expenses:          
    Research and development   27,800     30,504     28,627  
    Selling, general and administrative   33,454     35,226     33,079  
    Total operating expenses   61,254     65,730     61,706  
    Gain on sale of business   —     —     20,271  
    Operating income   3,269     7,850     21,303  
    Interest income, net   3,317     3,472     3,156  
    Other income, net   890     617     520  
    Income before income taxes   7,476     11,939     24,979  
    Provision for income taxes   1,075     2,234     3,198  
    Net income $ 6,401   $ 9,705   $ 21,781  
    Net income per share:          
    Basic $ 0.08   $ 0.13   $ 0.28  
    Diluted $ 0.08   $ 0.12   $ 0.28  
    Weighted-average number of shares used in per share calculations:        
    Basic   77,345     77,267     77,452  
    Diluted   77,884     77,982     78,490  
     
    FORMFACTOR, INC. 
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
       
      Three Months Ended
      March 29,
    2025    		   December 28,
    2024    		   March 30,
    2024
    GAAP Gross Profit $ 64,523     $ 73,580     $ 62,738  
    Adjustments:          
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   542       555       586  
    Stock-based compensation   2,005       1,944       1,928  
    Restructuring charges   60       32       44  
    Non-GAAP Gross Profit $ 67,130     $ 76,111     $ 65,296  
               
    GAAP Gross Margin   37.7 %     38.8 %     37.2 %
    Adjustments:          
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   0.3 %     0.4 %     0.4 %
    Stock-based compensation   1.2 %     1.0 %     1.1 %
    Restructuring charges   — %     — %     — %
    Non-GAAP Gross Margin   39.2 %     40.2 %     38.7 %
               
    GAAP operating expenses $ 61,254     $ 65,730     $ 61,706  
    Adjustments:          
    Amortization of intangibles   (191 )     (191 )     (191 )
    Stock-based compensation   (7,791 )     (8,269 )     (8,477 )
    Restructuring charges   (2,823 )     (371 )     (49 )
    Costs related to sale and acquisition of businesses   (217 )     (1,689 )     (646 )
    Non-GAAP operating expenses $ 50,232     $ 55,210     $ 52,343  
               
    GAAP operating income $ 3,269     $ 7,850     $ 21,303  
    Adjustments:          
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   733       746       777  
    Stock-based compensation   9,796       10,213       10,405  
    Restructuring charges   2,883       403       93  
    Gain on sale of business, net of cost related to sale and acquisition of businesses   217       1,689       (19,625 )
    Non-GAAP operating income $ 16,898     $ 20,901     $ 12,953  
     
    FORMFACTOR, INC. 
    NON-GAAP FINANCIAL MEASURE RECONCILIATIONS
    (In thousands, except per share amounts)
    (Unaudited)
       
      Three Months Ended
      March 29,
    2025    		   December 28,
    2024    		   March 30,
    2024
    GAAP net income $ 6,401     $ 9,705     $ 21,781  
    Adjustments:          
    Amortization of intangibles and fixed asset fair value adjustments due to acquisitions   733       746       777  
    Stock-based compensation   9,796       10,213       10,405  
    Restructuring charges   2,883       415       93  
    Gain on sale of business, net of cost related to sale and acquisition of businesses   217       1,689       (19,625 )
    Income tax effect of non-GAAP adjustments   (2,026 )     (1,445 )     913  
    Non-GAAP net income $ 18,004     $ 21,323     $ 14,344  
               
    GAAP net income per share:          
    Basic $ 0.08     $ 0.13     $ 0.28  
    Diluted $ 0.08     $ 0.12     $ 0.28  
               
    Non-GAAP net income per share:          
    Basic $ 0.23     $ 0.28     $ 0.19  
    Diluted $ 0.23     $ 0.27     $ 0.18  
     
    FORMFACTOR, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
     
      Three Months Ended
      March 29,
    2025    		   March 30,
    2024
    Cash flows from operating activities:      
    Net income $ 6,401     $ 21,781  
    Selected adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation   8,156       7,193  
    Amortization   674       640  
    Stock-based compensation expense   9,796       10,405  
    Provision for excess and obsolete inventories   2,879       3,146  
    Gain on sale of business   —       (20,271 )
    Non-cash restructuring charges   2,102       —  
    Other activity impacting operating cash flows   (6,469 )     10,118  
    Net cash provided by operating activities   23,539       33,012  
    Cash flows from investing activities:      
    Acquisition of property, plant and equipment   (18,584 )     (13,436 )
    Proceeds from sale of business   —       21,275  
    Purchase of equity investment   (67,156 )     —  
    Proceeds from (purchases of) marketable securities, net   1,080       (11,659 )
    Net cash used in investing activities   (84,660 )     (3,820 )
    Cash flows from financing activities:      
    Purchase of common stock through stock repurchase program   (22,135 )     (17,334 )
    Proceeds from issuances of common stock   21,576       4,948  
    Principal repayments on term loans   (273 )     (266 )
    Tax withholdings related to net share settlements of equity awards   (2,132 )     (1,840 )
    Net cash used in financing activities   (2,964 )     (14,492 )
    Effect of exchange rate changes on cash, cash equivalents and restricted cash   180       (1,592 )
    Net increase (decrease) in cash, cash equivalents and restricted cash   (63,905 )     13,108  
    Cash, cash equivalents and restricted cash, beginning of period   197,206       181,273  
    Cash, cash equivalents and restricted cash, end of period $ 133,301     $ 194,381  
     
    FORMFACTOR, INC. 
    RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO NON-GAAP FREE CASH FLOW
    (In thousands)
    (Unaudited)
       
      Three Months Ended
      March 29,
    2025    		   December 28,
    2024    		   March 30,
    2024
    Net cash provided by operating activities $ 23,539     $ 35,913     $ 33,012  
    Adjustments:          
    Sale of business and acquisition related payments in working capital   1,221       506       47  
    Cash paid for interest   92       93       100  
    Capital expenditures   (18,584 )     (7,663 )     (13,436 )
    Free cash flow $ 6,268     $ 28,849     $ 19,723  
     
    FORMFACTOR, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands)
    (Unaudited)
     
      March 29,
    2025    		   December 28,
    2024
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 129,889     $ 190,728  
    Marketable securities   169,099       169,295  
    Accounts receivable, net of allowance for credit losses   98,605       104,294  
    Inventories, net   109,965       101,676  
    Restricted cash   967       3,746  
    Prepaid expenses and other current assets   42,716       35,389  
    Total current assets   551,241       605,128  
    Restricted cash   2,445       2,732  
    Operating lease, right-of-use-assets   20,054       22,579  
    Property, plant and equipment, net of accumulated depreciation   208,317       210,230  
    Equity investment   68,667       —  
    Goodwill   199,700       199,171  
    Intangibles, net   9,681       10,355  
    Deferred tax assets   92,759       92,012  
    Other assets   3,303       4,008  
    Total assets $ 1,156,167     $ 1,146,215  
           
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities:      
    Accounts payable $ 64,536     $ 62,287  
    Accrued liabilities   34,909       43,742  
    Current portion of term loan, net of unamortized issuance costs   1,113       1,106  
    Deferred revenue   14,996       15,847  
    Operating lease liabilities   8,461       8,363  
    Total current liabilities   124,015       131,345  
    Term loan, less current portion, net of unamortized issuance costs   11,927       12,208  
    Long-term operating lease liabilities   15,980       17,550  
    Deferred grant   18,000       18,000  
    Other liabilities   20,371       19,344  
    Total liabilities   190,293       198,447  
           
    Stockholders’ equity:      
    Common stock   77       77  
    Additional paid-in capital   844,488       837,586  
    Accumulated other comprehensive loss   (6,037 )     (10,840 )
    Accumulated income   127,346       120,945  
    Total stockholders’ equity   965,874       947,768  
    Total liabilities and stockholders’ equity $ 1,156,167     $ 1,146,215  
     

    About our Non-GAAP Financial Measures:

    We believe that the presentation of non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income and free cash flow provides supplemental information that is important to understanding financial and business trends and other factors relating to our financial condition and results of operations. Non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income are among the primary indicators used by management as a basis for planning and forecasting future periods, and by management and our board of directors to determine whether our operating performance has met certain targets and thresholds. Management uses non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income when evaluating operating performance because it believes that the exclusion of the items indicated herein, for which the amounts or timing may vary significantly depending upon our activities and other factors, facilitates comparability of our operating performance from period to period. We use free cash flow to conduct and evaluate our business as an additional way of viewing our liquidity that, when viewed with our GAAP results, provides a more complete understanding of factors and trends affecting our cash flows. Many investors also prefer to track free cash flow, as opposed to only GAAP earnings. Free cash flow has limitations due to the fact that it does not represent the residual cash flow available for discretionary expenditures, and therefore it is important to view free cash flow as a complement to our entire consolidated statements of cash flows. We have chosen to provide this non-GAAP information to investors so they can analyze our operating results closer to the way that management does, and use this information in their assessment of our business and the valuation of our Company. We compute non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income, by adjusting GAAP net income, GAAP net income per basic and diluted share, GAAP gross profit, GAAP gross margin, GAAP operating expenses, and GAAP operating income to remove the impact of certain items and the tax effect, if applicable, of those adjustments. These non-GAAP measures are not in accordance with, or an alternative to, GAAP, and may be materially different from other non-GAAP measures, including similarly titled non-GAAP measures used by other companies. The presentation of this additional information should not be considered in isolation from, as a substitute for, or superior to, net income, net income per basic and diluted share, gross profit, gross margin, operating expenses, or operating income in accordance with GAAP. Non-GAAP financial measures have limitations in that they do not reflect certain items that may have a material impact upon our reported financial results. We may expect to continue to incur expenses of a nature similar to the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP operating income should not be construed as an inference that these costs are unusual, infrequent or non-recurring. For more information on the non-GAAP adjustments, please see the table captioned “Non-GAAP Financial Measure Reconciliations” and “Reconciliation of Cash Provided by Operating Activities to non-GAAP Free Cash Flow” included in this press release.

    Source: FormFactor, Inc.
    FORM-F

    The MIL Network –

  • MIL-OSI: Credit Acceptance Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Southfield, Michigan, April 30, 2025 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (referred to as the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) today announced consolidated net income of $106.3 million, or $8.66 per diluted share, for the three months ended March 31, 2025. Adjusted net income, a non-GAAP financial measure, for the three months ended March 31, 2025 was $114.8 million, or $9.35 per diluted share. The following table summarizes our financial results:

    (In millions, except per share data)   For the Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
    GAAP net income   $         106.3    $         151.9    $         64.3 
    GAAP net income per diluted share   $         8.66    $         12.26    $         5.08 
                 
    Adjusted net income   $         114.8    $         126.0    $         117.4 
    Adjusted net income per diluted share   $         9.35    $         10.17    $         9.28 

    Our results and achievements for the first quarter of 2025 included the following:

    • A modest decline in forecasted collection rates, which decreased forecasted net cash flows from our loan portfolio by $20.9 million, or 0.2%, and slower forecasted net cash flow timing.
    • An 11.0% increase in the average balance of our loan portfolio from the first quarter of 2024 to $7.9 billion, which is our largest ever.
    • A decline in Consumer Loan assignment unit and dollar volumes of 10.1% and 15.5%, respectively, as compared to the first quarter of 2024.
    • The repurchase of approximately 329,000 shares, or 2.7% of the shares outstanding at the beginning of the quarter.
    • The enrollment of 1,617 new dealers with 10,789 active dealers during the quarter.
    • $68.0 million in dealer holdback and accelerated dealer holdback payments to dealers.
    • Maintained a strong liquidity position, with over $2.2 billion in unrestricted cash and cash equivalents and unused and available revolving lines of credit as of March 31, 2025.
    • Named a Top Workplaces USA award winner for the fifth year in a row, with a #2 ranking among companies of our size.

    Consumer Loan Metrics

    Dealers assign retail installment contracts (referred to as “Consumer Loans”) to Credit Acceptance. At the time a Consumer Loan is submitted to us for assignment, we forecast future expected cash flows from the Consumer Loan. Based on the amount and timing of these forecasts and expected expense levels, an advance or one-time purchase payment is made to the related dealer at a price designed to maximize economic profit, a non-GAAP financial measure that considers our return on capital, our cost of capital, and the amount of capital invested. 

    We use a statistical model to estimate the expected collection rate for each Consumer Loan at the time of assignment. We continue to evaluate the expected collection rate for each Consumer Loan subsequent to assignment. Our evaluation becomes more accurate as the Consumer Loans age, as we use actual performance data in our forecast. By comparing our current expected collection rate for each Consumer Loan with the rate we projected at the time of assignment, we are able to assess the accuracy of our initial forecast. The following table compares our aggregated forecast of Consumer Loan collection rates as of March 31, 2025, with the aggregated forecasts as of December 31, 2024, and at the time of assignment, segmented by year of assignment:

        Forecasted Collection Percentage as of (1)   Current Forecast Variance from
     Consumer Loan Assignment Year   March 31, 2025   December 31, 2024   Initial
    Forecast    		   December 31, 2024   Initial
    Forecast
    2016           63.9  %           63.9  %           65.4  %           0.0  %           -1.5  %
    2017           64.8  %           64.7  %           64.0  %           0.1  %           0.8  %
    2018           65.5  %           65.5  %           63.6  %           0.0  %           1.9  %
    2019           67.2  %           67.2  %           64.0  %           0.0  %           3.2  %
    2020           67.9  %           67.7  %           63.4  %           0.2  %           4.5  %
    2021           63.9  %           63.8  %           66.3  %           0.1  %           -2.4  %
    2022           60.0  %           60.2  %           67.5  %           -0.2  %           -7.5  %
    2023           64.3  %           64.3  %           67.5  %           0.0  %           -3.2  %
    2024           66.3  %           66.5  %           67.2  %           -0.2  %           -0.9  %
    2025           66.0  %           —              66.2  %           —              -0.2  %

    (1)   Represents the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.

    For the three months ended March 31, 2025, forecasted collection rates improved for Consumer Loans assigned in 2020, declined for Consumer Loans assigned in 2022, 2024, and 2025, and were generally consistent with expectations at the start of the period for all other assignment years presented.

    The changes to our forecast of future net cash flows from our Loan portfolio (forecasted collections less forecasted dealer holdback payments) for each of the last five quarters are shown in the following table:

    (Dollars in millions)   Decrease in Forecasted Net Cash Flows
    Three Months Ended   Total Loans   % Change from Forecast at Beginning of Period
    March 31, 2024   $         (30.8)             -0.3  %
    June 30, 2024             (189.3)             -1.7  %
    September 30, 2024             (62.8)             -0.6  %
    December 31, 2024             (31.1)             -0.3  %
    March 31, 2025             (20.9)             -0.2  %

    The following table presents information on Consumer Loan assignments for each of the last 10 years:

         Average   Total Assignment Volume
     Consumer Loan
    Assignment Year    		   Consumer Loan (1)   Advance (2)   Initial Loan Term (in months)   Unit Volume   Dollar Volume (2)
    (in millions)
    2016   $         18,218   $         7,976   53   330,710   $         2,635.5
    2017     20,230     8,746   55   328,507     2,873.1
    2018     22,158     9,635   57   373,329     3,595.8
    2019     23,139     10,174   57   369,805     3,772.2
    2020     24,262     10,656   59   341,967     3,641.2
    2021     25,632     11,790   59   268,730     3,167.8
    2022     27,242     12,924   60   280,467     3,625.3
    2023     27,025     12,475   61   332,499     4,147.8
    2024     26,497     11,961   61   386,126     4,618.4
          2025 (3)     25,188     11,096   60   100,278     1,112.7

    (1)   Represents the repayments that we were contractually owed on Consumer Loans at the time of assignment, which include both principal and interest.
    (2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program. Payments of dealer holdback and accelerated dealer holdback are not included.
    (3)   Represents activity for the three months ended March 31, 2025. Information in this table for each of the years prior to 2025 represents activity for all 12 months of that year.

    The profitability of our loans is primarily driven by the amount and timing of the net cash flows we receive from the spread between the forecasted collection rate and the advance rate, less operating expenses and the cost of capital. Forecasting collection rates accurately at loan inception is difficult. With this in mind, we establish advance rates that are intended to allow us to achieve acceptable levels of profitability across our portfolio, even if collection rates are less than we initially forecast.

    The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate), and the percentage of the forecasted collections that had been realized as of March 31, 2025, as well as forecasted collection rates and spreads at the time of assignment. All amounts, unless otherwise noted, are presented as a percentage of the initial balance of the Consumer Loan (principal + interest). The table includes both dealer loans and purchased loans.

        Forecasted Collection % as of       Spread % as of    
     Consumer Loan Assignment Year   March 31, 2025   Initial Forecast   Advance % (1)   March 31, 2025   Initial Forecast   % of Forecast
    Realized (2)
    2016           63.9  %           65.4  %           43.8  %           20.1  %           21.6  %           99.6  %
    2017           64.8  %           64.0  %           43.2  %           21.6  %           20.8  %           99.3  %
    2018           65.5  %           63.6  %           43.5  %           22.0  %           20.1  %           98.8  %
    2019           67.2  %           64.0  %           44.0  %           23.2  %           20.0  %           97.5  %
    2020           67.9  %           63.4  %           43.9  %           24.0  %           19.5  %           93.9  %
    2021           63.9  %           66.3  %           46.0  %           17.9  %           20.3  %           86.3  %
    2022           60.0  %           67.5  %           47.4  %           12.6  %           20.1  %           70.6  %
    2023           64.3  %           67.5  %           46.2  %           18.1  %           21.3  %           49.3  %
    2024           66.3  %           67.2  %           45.1  %           21.2  %           22.1  %           22.9  %
    2025           66.0  %           66.2  %           44.2  %           21.8  %           22.0  %           2.5  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.
    (2)   Presented as a percentage of total forecasted collections.

    The risk of a material change in our forecasted collection rate declines as the Consumer Loans age. For 2020 and prior Consumer Loan assignments, the risk of a material forecast variance is modest, as we have currently realized in excess of 90% of the expected collections. Conversely, the forecasted collection rates for more recent Consumer Loan assignments are less certain as a significant portion of our forecast has not been realized.

    The spread between the forecasted collection rate as of March 31, 2025 and the advance rate ranges from 12.6% to 24.0%, on an annual basis, for Consumer Loans assigned over the last 10 years. The spreads with respect to 2019 and 2020 Consumer Loans have been positively impacted by Consumer Loan performance, which has exceeded our initial estimates by a greater margin than the other years presented. The spreads with respect to 2021 through 2023 Consumer Loans have been negatively impacted by Consumer Loan performance, which has been lower than our initial estimates by a greater margin than the other years presented. The higher spread for 2025 Consumer Loans relative to 2024 Consumer Loans as of March 31, 2025 was primarily a result of Consumer Loan performance, as the performance of 2024 Consumer Loans has been lower than our initial estimates by a greater margin than 2025 Consumer Loans.

    The following table compares our forecast of aggregate Consumer Loan collection rates as of March 31, 2025 with the forecasts at the time of assignment, for dealer loans and purchased loans separately:

        Dealer Loans   Purchased Loans
        Forecasted Collection Percentage as of (1)       Forecasted Collection Percentage as of (1)    
     Consumer Loan Assignment Year   March 31,
    2025    		   Initial
    Forecast    		   Variance   March 31,
    2025    		   Initial
    Forecast    		   Variance
    2016           63.1  %           65.1  %           -2.0  %           66.1  %           66.5  %           -0.4  %
    2017           64.1  %           63.8  %           0.3  %           66.4  %           64.6  %           1.8  %
    2018           64.9  %           63.6  %           1.3  %           66.8  %           63.5  %           3.3  %
    2019           66.9  %           63.9  %           3.0  %           67.9  %           64.2  %           3.7  %
    2020           67.7  %           63.3  %           4.4  %           68.1  %           63.6  %           4.5  %
    2021           63.6  %           66.3  %           -2.7  %           64.4  %           66.3  %           -1.9  %
    2022           59.2  %           67.3  %           -8.1  %           61.9  %           68.0  %           -6.1  %
    2023           63.0  %           66.8  %           -3.8  %           67.7  %           69.4  %           -1.7  %
    2024           65.2  %           66.3  %           -1.1  %           70.6  %           70.7  %           -0.1  %
    2025           64.7  %           64.9  %           -0.2  %           70.5  %           70.7  %           -0.2  %

    (1)   The forecasted collection rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment. The forecasted collection rates represent the total forecasted collections we expect to collect on the Consumer Loans as a percentage of the repayments that we were contractually owed on the Consumer Loans at the time of assignment. Contractual repayments include both principal and interest. Forecasted collection rates are negatively impacted by canceled Consumer Loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates.

    The following table presents aggregate forecasted Consumer Loan collection rates, advance rates, and spreads (the forecasted collection rate less the advance rate) as of March 31, 2025 for dealer loans and purchased loans separately.  All amounts are presented as a percentage of the initial balance of the Consumer Loan (principal + interest).

        Dealer Loans   Purchased Loans
     Consumer Loan Assignment Year   Forecasted Collection % (1)   Advance % (1)(2)   Spread %   Forecasted Collection % (1)   Advance % (1)(2)   Spread %
    2016           63.1  %           42.1  %           21.0  %           66.1  %           48.6  %           17.5  %
    2017           64.1  %           42.1  %           22.0  %           66.4  %           45.8  %           20.6  %
    2018           64.9  %           42.7  %           22.2  %           66.8  %           45.2  %           21.6  %
    2019           66.9  %           43.1  %           23.8  %           67.9  %           45.6  %           22.3  %
    2020           67.7  %           43.0  %           24.7  %           68.1  %           45.5  %           22.6  %
    2021           63.6  %           45.1  %           18.5  %           64.4  %           47.7  %           16.7  %
    2022           59.2  %           46.4  %           12.8  %           61.9  %           50.1  %           11.8  %
    2023           63.0  %           44.8  %           18.2  %           67.7  %           49.8  %           17.9  %
    2024           65.2  %           44.1  %           21.1  %           70.6  %           48.9  %           21.7  %
    2025           64.7  %           42.8  %           21.9  %           70.5  %           49.1  %           21.4  %

    (1)   The forecasted collection rates and advance rates presented for dealer loans and purchased loans reflect the Consumer Loan classification at the time of assignment.
    (2)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program as a percentage of the initial balance of the Consumer Loans.  Payments of dealer holdback and accelerated dealer holdback are not included.

    Although the advance rate on purchased loans is higher as compared to the advance rate on dealer loans, purchased loans do not require us to pay dealer holdback.

    The spread as of March 31, 2025 on 2025 dealer loans was 21.9%, as compared to a spread of 21.1% on 2024 dealer loans. The increase was primarily a result of Consumer Loan performance, as the performance of 2024 dealer loans has been lower than our initial estimates by a greater margin than 2025 dealer loans.

    The spread as of March 31, 2025 on 2025 purchased loans was 21.4%, as compared to a spread of 21.7% on 2024 purchased loans. The decrease was primarily a result of a lower initial spread on 2025 purchased loans, due to a higher advance rate.

    Consumer Loan Volume

    The following table summarizes changes in Consumer Loan assignment volume in each of the last five quarters as compared to the same period in the previous year:

        Year over Year Percent Change
    Three Months Ended   Unit Volume   Dollar Volume (1)
    March 31, 2024           24.1  %           20.2  %
    June 30, 2024           20.9  %           16.3  %
    September 30, 2024           17.7  %           12.2  %
    December 31, 2024           0.3  %           -4.9  %
    March 31, 2025           -10.1  %           -15.5  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

    Consumer Loan assignment volumes depend on a number of factors including (1) the overall demand for our financing programs and (2) the amount of capital available to fund new loans. Our pricing strategy is intended to maximize the amount of economic profit we generate, within the confines of capital constraints.

    Unit and dollar volumes declined 10.1% and 15.5%, respectively, during the first quarter of 2025 as the number of active dealers declined 0.1% and the average unit volume per active dealer declined 9.7%. Dollar volume declined by more than unit volume during the first quarter of 2025 due to a decrease in the average advance paid, resulting from decreases in the average size of Consumer Loans assigned and the average advance rate. Unit volume for the 28-day period ended April 28, 2025 decreased 9.8% compared to the same period in 2024.

    The following table summarizes the changes in Consumer Loan unit volume and active dealers:

      For the Three Months Ended March 31,    
      2025   2024   % Change
    Consumer Loan unit volume         100,278            111,488            -10.1  %
    Active dealers (1)         10,789            10,805            -0.1  %
    Average volume per active dealer         9.3            10.3            -9.7  %
               
    Consumer Loan unit volume from dealers active both periods         80,926            93,406            -13.4  %
    Dealers active both periods         7,067            7,067            —   
    Average volume per dealer active both periods         11.5            13.2            -13.4  %
               
    Consumer loan unit volume from dealers not active both periods         19,352            18,082            7.0  %
    Dealers not active both periods         3,722            3,738            -0.4  %
    Average volume per dealer not active both periods         5.2            4.8            8.3  %

    (1)   Active dealers are dealers who have received funding for at least one Consumer Loan during the period.

    The following table provides additional information on the changes in Consumer Loan unit volume and active dealers: 

      For the Three Months Ended March 31,    
      2025     2024     % Change
    Consumer Loan unit volume from new active dealers         4,229              5,193              -18.6  %
    New active dealers (1)         1,195              1,310              -8.8  %
    Average volume per new active dealer         3.5              4.0              -12.5  %
               
    Attrition (2)         -16.2  %           -16.0  %    

    (1)   New active dealers are dealers who enrolled in our program and have received funding for their first dealer loan or purchased loan from us during the period.
    (2)   Attrition is measured according to the following formula:  decrease in Consumer Loan unit volume from dealers who have received funding for at least one dealer loan or purchased loan during the comparable period of the prior year but did not receive funding for any dealer loans or purchased loans during the current period divided by prior year comparable period Consumer Loan unit volume.

    The following table shows the percentage of Consumer Loans assigned to us as dealer loans and purchased loans for each of the last five quarters:

        Unit Volume   Dollar Volume (1)
    Three Months Ended   Dealer Loans   Purchased Loans   Dealer Loans   Purchased Loans
    March 31, 2024           78.2  %           21.8  %           76.6  %           23.4  %
    June 30, 2024           78.5  %           21.5  %           77.3  %           22.7  %
    September 30, 2024           79.5  %           20.5  %           78.4  %           21.6  %
    December 31, 2024           78.7  %           21.3  %           77.7  %           22.3  %
    March 31, 2025           77.0  %           23.0  %           75.1  %           24.9  %

    (1)   Represents advances paid to dealers on Consumer Loans assigned under the portfolio program and one-time payments made to dealers to purchase Consumer Loans assigned under the purchase program.  Payments of dealer holdback and accelerated dealer holdback are not included.

    As of March 31, 2025 and December 31, 2024, the net dealer loans receivable balance was 72.7% and 72.3%, respectively, of the total net loans receivable balance.

    Financial Results

    (Dollars in millions, except per share data) For the Three Months Ended March 31,    
        2025     2024   % Change
    GAAP average debt $         6,398.3    $         5,306.8            20.6  %
    GAAP average shareholders’ equity           1,782.0              1,678.5            6.2  %
    Average capital $         8,180.3    $         6,985.3            17.1  %
    GAAP net income $         106.3    $         64.3            65.3  %
    Diluted weighted average shares outstanding   12,279,446      12,646,529            -2.9  %
    GAAP net income per diluted share $         8.66    $         5.08            70.5  %

    The increase in GAAP net income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily a result of the following:

    • An increase in finance charges of 12.3% ($57.5 million), primarily due to an increase in the average balance of our loan portfolio.
    • A decrease in provision for credit losses of 13.0% ($24.1 million), due to:
      • A decrease in provision for credit losses on forecast changes of $10.9 million, due to a smaller decline in Consumer Loan performance.
      • A decrease in provision for credit losses on new Consumer Loan assignments of $13.2 million, due to a 10.1% decrease in Consumer Loan assignment unit volume and a 3.7% decrease in the average provision per Consumer Loan assignment. The decrease in average provision per new Consumer Loan assignment was primarily due to a decrease in the average advance rate for 2025 Consumer Loans.
    • An increase in operating expenses of 7.5% ($9.4 million), primarily due to an increase in salaries and wages expense of 12.9% ($10.1 million), primarily due to increases in (i) the number of team members as we are investing in our business with the goal of increasing the speed at which we enhance our product for dealers and consumers, (ii) stock-based compensation expense, primarily due to equity awards granted to our executive officers and senior leaders, and (iii) fringe benefits, primarily due to higher medical claims.
    • An increase in provision for income taxes of 60.2% ($13.3 million), primarily due to an increase in pre-tax income.
    • An increase in interest expense of 24.0% ($22.2 million), primarily due to an increase in our average outstanding debt balance, primarily due to borrowings used to fund the growth of our loan portfolio and stock repurchases.

    Adjusted financial results are provided to help shareholders understand our financial performance. The financial data below is non-GAAP, unless labeled otherwise. We use adjusted financial information internally to measure financial performance and to determine certain incentive compensation. We also use economic profit as a framework to evaluate business decisions and strategies, with the objective to maximize economic profit over the long term. In addition, certain debt facilities utilize adjusted financial information for the determination of loan collateral values and to measure financial covenants. The table below shows our results following adjustments to reflect non-GAAP accounting methods. Material adjustments are explained in the table footnotes and the subsequent “Floating Yield Adjustment” and “Senior Notes Adjustment” sections. Measures such as adjusted average capital, adjusted net income, adjusted net income per diluted share, adjusted interest expense (after-tax), adjusted net income plus adjusted interest expense (after-tax), adjusted return on capital, adjusted revenue, operating expenses, adjusted loans receivable, economic profit, and economic profit per diluted share are non-GAAP financial measures. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, our reported results prepared in accordance with GAAP.

    Adjusted financial results for the three months ended March 31, 2025, compared to the same period in 2024, include the following:

    (Dollars in millions, except per share data) For the Three Months Ended March 31,    
        2025       2024     % Change
    Adjusted average capital $         8,882.6      $         7,507.8              18.3  %
    Adjusted net income $         114.8      $         117.4              -2.2  %
    Adjusted interest expense (after-tax) $         88.3      $         71.2              24.0  %
    Adjusted net income plus adjusted interest expense (after-tax) $         203.1      $         188.6              7.7  %
    Adjusted return on capital           9.2  %             10.1  %           -8.9  %
    Cost of capital           7.6  %             7.3  %           4.1  %
    Economic profit $         35.3      $         51.4              -31.3  %
    Diluted weighted average shares outstanding   12,279,446        12,646,529              -2.9  %
    Adjusted net income per diluted share $         9.35      $         9.28              0.8  %
    Economic profit per diluted share $         2.87      $         4.06              -29.3  %

    Economic profit decreased 31.3% for the three months ended March 31, 2025, as compared to the same period in 2024. Economic profit is a function of the return on capital in excess of the cost of capital and the amount of capital invested in the business. The following table summarizes the impact each of these components had on the changes in economic profit for the three months ended March 31, 2025, as compared to the same period in 2024:

    (In millions) Year over Year Change in Economic Profit
      For the Three Months Ended March 31, 2025
    Decrease in adjusted return on capital $         (20.0)  
    Increase in cost of capital           (5.5)  
    Increase in adjusted average capital           9.4   
    Decrease in economic profit $         (16.1)  

    The decrease in economic profit for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily a result of the following:

    • A decrease in our adjusted return on capital of 90 basis points, primarily due to:
      • A decrease in the yield used to recognize adjusted finance charges on our loan portfolio decreased our adjusted return on capital by 140 basis points, primarily due to both a decline in forecasted collection rates and slower forecasted net cash flow timing throughout 2024 and the first quarter of 2025. The slower forecasted net cash flow timing was primarily due to lower-than-expected Consumer Loan prepayments, which remain below historical averages.
      • Slower growth in operating expenses increased our adjusted return on capital by 50 basis points as operating expenses grew by 7.5% while adjusted average capital grew by 18.3%.
    • An increase in adjusted average capital of 18.3%, primarily due to an increase in the average balance of our loan portfolio.

    The following table shows adjusted revenue and operating expenses as a percentage of adjusted average capital, the adjusted return on capital, and the percentage change in adjusted average capital for each of the last eight quarters, compared to the same period in the prior year:

        For the Three Months Ended
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted finance charges as a percentage of adjusted average loans receivable (1)           16.7  %           16.5  %           16.4  %           17.8  %           17.6  %           17.9  %           18.5  %           19.3  %
    Adjusted revenue as a percentage of adjusted average capital (1)           18.0  %           18.4  %           18.2  %           19.6  %           19.8  %           20.2  %           20.7  %           21.2  %
    Operating expenses as a percentage of adjusted average capital (1)           6.1  %           5.6  %           6.2  %           6.2  %           6.7  %           6.3  %           6.3  %           6.9  %
    Adjusted return on capital (1)           9.2  %           9.8  %           9.3  %           10.3  %           10.1  %           10.6  %           11.1  %           11.1  %
    Percentage change in adjusted average capital compared to the same period in the prior year           18.3  %           19.3  %           19.4  %           17.6  %           14.6  %           11.5  %           8.8  %           6.2  %

    (1)   Annualized.

    The decrease in adjusted return on capital for the three months ended March 31, 2025, as compared to the three months ended December 31, 2024, was primarily due to:

    • Faster growth in operating expenses, which decreased adjusted return on capital by 40 basis points, as operating expenses increased by 11.4% while adjusted average capital grew 2.9%. The $13.9 million increase in operating expenses was primarily due to the seasonal impact of the following:
      • An increase in fringe benefits, primarily due to an increase in accrued paid time off.
      • An increase in payroll taxes as a result of both taxes that are subject to income limitations and the taxes on the annual vesting of equity awards during the first quarter of the year.
      • An increase in sales commissions driven by higher unit volume during the first quarter of the year.
    • A decrease in adjusted revenue as a percentage of adjusted average capital, primarily due to adjusted average capital growing faster than adjusted average loans receivable due to an increase in cash and cash equivalents, partially offset by an increase in the yield on our adjusted loan portfolio. The increase in cash and cash equivalents was primarily due to the timing of recently completed debt issuances and a decline in Consumer Loan assignment volume.

    The following tables provide a reconciliation of non-GAAP measures to GAAP measures.  Certain amounts do not recalculate due to rounding.

    (Dollars in millions, except per share data)   For the Three Months Ended
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted net income                                
    GAAP net income (loss)   $         106.3      $         151.9      $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2   
    Floating yield adjustment (after-tax)             (118.9)               (116.8)               (115.1)               (96.1)               (92.4)               (83.9)               (76.4)               (73.9)  
    GAAP provision for credit losses (after-tax)             124.6                95.0                142.2                246.9                143.2                126.1                142.1                192.9   
    Loss on sale of building (after-tax) (1)             —                —                —                18.3                —                —                —                —          
    Senior notes adjustment (after-tax)             —                —                —                —                —                (2.6)               (0.5)               (0.6)  
    Income tax adjustment (2)             2.8                (4.1)               3.2                4.4                2.3                (4.1)               3.5                (0.6)  
    Adjusted net income   $         114.8      $         126.0      $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0   
                                     
    Adjusted net income per diluted share (3)   $         9.35      $         10.17      $         8.79      $         10.29      $         9.28      $         10.06      $         10.70      $         10.69   
    Diluted weighted average shares outstanding     12,279,446        12,388,072        12,415,143        12,282,174        12,646,529        12,837,181        13,039,638        13,099,961   
                                     
    Adjusted revenue                                
    GAAP total revenue   $         571.1      $         565.9      $         550.3      $         538.2      $         508.0      $         491.6      $         478.6      $         477.9   
    Floating yield adjustment             (154.5)               (151.8)               (149.4)               (124.8)               (120.0)               (108.9)               (99.3)               (96.1)  
    GAAP provision for claims             (16.1)               (17.7)               (18.5)               (20.3)               (17.0)               (16.6)               (16.5)               (19.7)  
    Adjusted revenue   $         400.5      $         396.4      $         382.4      $         393.1      $         371.0      $         366.1      $         362.8      $         362.1   
                                     
    Adjusted average capital                                
    GAAP average debt   $         6,398.3      $         6,202.5      $         6,071.1      $         5,818.2      $         5,306.8      $         4,986.3      $         4,831.4      $         4,730.3   
    Deferred debt issuance adjustment             —                —                —                —                —                20.9                24.5                24.0   
    Senior notes debt adjustment             —                —                —                —                —                2.8                3.4                3.4   
    Adjusted average debt             6,398.3                6,202.5                6,071.1                5,818.2                5,306.8                5,010.0                4,859.3                4,757.7   
    GAAP average shareholders’ equity             1,782.0                1,712.3                1,594.2                1,623.5                1,678.5                1,734.3                1,731.3                1,752.6   
    Senior notes equity adjustment             —                —                —                —                —                2.0                2.9                3.4   
    Income tax adjustment (4)             (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)               (118.5)  
    Floating yield adjustment             820.8                837.0                840.8                710.1                641.0                606.5                548.9                433.9   
    Adjusted average equity             2,484.3                2,430.8                2,316.5                2,215.1                2,201.0                2,224.3                2,164.6                2,071.4   
    Adjusted average capital   $         8,882.6      $         8,633.3      $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1   
    Adjusted revenue as a percentage of adjusted average capital (5)             18.0  %             18.4  %             18.2  %             19.6  %             19.8  %             20.2  %             20.7  %             21.2  %
                                     
    Adjusted loans receivable                                
    GAAP loans receivable, net   $         7,978.2      $         7,850.3      $         7,781.5      $         7,547.7      $         7,345.6      $         6,955.3      $         6,780.5      $         6,610.3   
    Floating yield adjustment             1,079.8                1,072.4                1,100.8                1,065.6                869.7                803.8                748.9                663.7   
    Adjusted loans receivable   $         9,058.0      $         8,922.7      $         8,882.3      $         8,613.3      $         8,215.3      $         7,759.1      $         7,529.4      $         7,274.0   
                                     
    Adjusted loan yield                                
    GAAP finance charges   $         526.7      $         518.2      $         507.6      $         497.7      $         469.2      $         451.6      $         441.7      $         441.0   
    Floating yield adjustment             (154.5)               (151.8)               (149.4)               (124.8)               (120.0)               (108.9)               (99.3)               (96.1)  
    Adjusted finance charges   $         372.2      $         366.4      $         358.2      $         372.9      $         349.2      $         342.7      $         342.4      $         344.9   
                                     
    GAAP average loans receivable, net   $         7,882.4      $         7,831.4      $         7,690.9      $         7,499.2      $         7,101.3      $         6,867.8      $         6,690.8      $         6,596.6   
    Average floating yield adjustment             1,048.9                1,071.4                1,072.2                903.2                819.7                775.6                701.0                552.8   
    Adjusted average loans receivable   $         8,931.3      $         8,902.8      $         8,763.1      $         8,402.4      $         7,921.0      $         7,643.4      $         7,391.8      $         7,149.4   
    Adjusted finance charges as a percentage of adjusted average loans receivable (5)             16.7  %             16.5  %             16.4  %             17.8  %             17.6  %             17.9  %             18.5  %             19.3  %

    (1)   The sale of one of our two office buildings in June 2024 resulted in a loss on the sale of the asset. As this transaction is both unusual and infrequent in nature, we applied this adjustment to remove the impact of the loss on sale of building from our adjusted net income.
    (2)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%. 
    (3)   Net income per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly net income per diluted share information may not equal year-to-date net income per diluted share.
    (4)   The enactment of the Tax Cuts and Jobs Act in December 2017 resulted in the reversal of $118.5 million of provision for income taxes to reflect the new federal statutory income tax rate. This adjustment removes the impact of this reversal from adjusted average capital. We believe the income tax adjustment provides a more accurate reflection of the performance of our business as we are recognizing provision for income taxes at the applicable long-term effective tax rate for the period.
    (5)   Annualized.

    (Dollars in millions)   For the Three Months Ended
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Adjusted interest expense (after-tax)                                
    GAAP interest expense   $         114.7      $         111.3      $         111.2      $         104.5      $         92.5      $         78.8      $         70.5      $         62.8   
    Senior notes adjustment             —                 —                —                —                —                3.5                0.7                0.7   
    Adjusted interest expense (pre-tax)             114.7                111.3                111.2                104.5                92.5                82.3                71.2                63.5   
    Adjustment to record tax effect (1)             (26.4)               (25.6)               (25.6)               (24.0)               (21.3)               (18.9)               (16.4)               (14.6)  
    Adjusted interest expense (after-tax)   $         88.3      $         85.7      $         85.6      $         80.5      $         71.2      $         63.4      $         54.8      $         48.9   
                                     
    Adjusted return on capital (2)                                
    Adjusted net income   $         114.8      $         126.0      $         109.1      $         126.4      $         117.4      $         129.1      $         139.5      $         140.0   
    Adjusted interest expense (after-tax)             88.3                85.7                85.6                80.5                71.2                63.4                54.8                48.9   
    Adjusted net income plus adjusted interest expense (after-tax)   $         203.1      $         211.7      $         194.7      $         206.9      $         188.6      $         192.5      $         194.3      $         188.9   
                                     
    Reconciliation of GAAP return on equity to adjusted return on capital (5)                                
    GAAP return on equity (3)             23.9  %             35.5  %             19.8  %             -11.6  %             15.3  %             21.6  %             16.4  %             5.1  %
    Non-GAAP adjustments             -14.7  %             -25.7  %             -10.5  %             21.9  %             -5.2  %             -11.0  %             -5.3  %             6.0  %
    Adjusted return on capital (2)             9.2  %             9.8  %             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %
                                     
    Economic profit                                
    Adjusted return on capital             9.2  %             9.8  %             9.3  %             10.3  %             10.1  %             10.6  %             11.1  %             11.1  %
    Cost of capital (4) (5)             7.6  %             7.4  %             7.3  %             7.5  %             7.3  %             7.6  %             7.1  %             6.7  %
    Adjusted return on capital in excess of cost of capital             1.6  %             2.4  %             2.0  %             2.8  %             2.8  %             3.0  %             4.0  %             4.4  %
    Adjusted average capital   $         8,882.6      $         8,633.3      $         8,387.6      $         8,033.3      $         7,507.8      $         7,234.3      $         7,023.9      $         6,829.1   
        Economic profit   $         35.3      $         51.3      $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1   
                                     
    Reconciliation of GAAP net income (loss) to economic profit                                
    GAAP net income (loss)   $         106.3      $         151.9      $         78.8      $         (47.1)     $         64.3      $         93.6      $         70.8      $         22.2   
    Non-GAAP adjustments             8.5                (25.9)               30.3                173.5                53.1                35.5                68.7                117.8   
    Adjusted net income             114.8                126.0                109.1                126.4                117.4                129.1                139.5                140.0   
    Adjusted interest expense (after-tax)             88.3                85.7                85.6                80.5                71.2                63.4                54.8                48.9   
    Adjusted net income plus adjusted interest expense (after-tax)             203.1                211.7                194.7                206.9                188.6                192.5                194.3                188.9   
    Less: cost of capital             167.8                160.4                153.3                150.7                137.2                136.6                125.2                114.8   
    Economic profit   $         35.3      $         51.3      $         41.4      $         56.2      $         51.4      $         55.9      $         69.1      $         74.1   
                                     
    Economic profit per diluted share (6)   $         2.87      $         4.14      $         3.33      $         4.58      $         4.06      $         4.35      $         5.30      $         5.66   
    Operating expenses as a percentage of adjusted average capital (5)             6.1  %             5.6  %             6.2  %             6.2  %             6.7  %             6.3  %             6.3  %             6.9  %
    Percentage change in adjusted average capital compared to the same period in the prior year             18.3  %             19.3  %             19.4  %             17.6  %             14.6  %             11.5  %             8.8  %             6.2  %

    (1)   Adjustment to record taxes at our estimated long-term effective income tax rate of 23%. 
    (2)   Adjusted return on capital is defined as adjusted net income plus adjusted interest expense (after-tax) divided by adjusted average capital.
    (3)   Calculated by dividing GAAP net income (loss) by GAAP average shareholders’ equity.
    (4)   The cost of capital includes both a cost of equity and a cost of debt.  The cost of equity capital is determined based on a formula that considers the risk of the business and the risk associated with our use of debt.  The formula utilized for determining the cost of equity capital is as follows: (the average 30-year Treasury rate + 5%) + [(1 – tax rate) x (the average 30-year Treasury rate + 5% – pre-tax average cost of debt rate) x average debt/(average equity + average debt x tax rate)].  For the periods presented, the average 30-year Treasury rate and the adjusted pre-tax average cost of debt were as follows:

        For the Three Months Ended
        Mar. 31, 2025   Dec. 31, 2024   Sept. 30, 2024   Jun. 30, 2024   Mar. 31, 2024   Dec. 31, 2023   Sept. 30, 2023   Jun. 30, 2023
    Average 30-year Treasury rate           4.7  %           4.4  %           4.3  %           4.6  %           4.3  %           4.7  %           4.2  %           3.8  %
    Pre-tax average cost of debt (5)           7.2  %           7.2  %           7.3  %           7.2  %           7.0  %           6.3  %           5.9  %           5.3  %

    (5)   Annualized.
    (6)   Economic profit per diluted share is computed independently for each of the quarters presented. Therefore, the sum of quarterly economic profit per diluted share information may not equal year-to-date economic profit per diluted share.

    Floating Yield Adjustment

    The net loan income (finance charge revenue less provision for credit losses expense) that we recognize over the life of a loan equals the cash we collect from the underlying Consumer Loan less the cash we pay to the dealer. We believe the economics of our business are best exhibited by recognizing loan revenue on a level-yield basis over the life of the loan based on expected future net cash flows. The purpose of this non-GAAP adjustment is to provide insight into our business by showing this level yield measure of income. Under GAAP, contractual amounts due in excess of the loan receivable balance at the time of assignment will be reflected as interest income, while contractual amounts due that are not expected to be collected are reflected in the provision for credit losses. Our non-GAAP floating yield adjustment recognizes the net effects of contractual interest income and expected credit losses in a single measure of finance charge revenue, consistent with how we manage our business. The floating yield adjustment recognizes revenue on a level-yield basis based upon expected future net cash flows, with any changes in expected future net cash flows, which are recognized immediately under GAAP as provision for credit losses, recognized over the remaining forecast period (up to 120 months after the origination date of the underlying Consumer Loans) for each individual dealer loan and purchased loan. The floating yield adjustment does not accelerate revenue recognition. Rather, it reduces revenue by taking amounts that are reported under GAAP as provision for credit losses and instead treating them as reductions of revenue over time.

    Under the GAAP methodology we employ, which is known as the current expected credit loss model, or CECL, we are required to recognize:

    • a significant provision for credit losses expense at the time of the loan’s assignment to us for contractual net cash flows we do not expect to realize; and
    • finance charge revenue in subsequent periods that is significantly in excess of our expected yield.

    Due to the GAAP treatment of contractual net cash flows we do not expect to realize at the time of loan assignment (i.e. significant expense at the time of loan assignment, which is offset by higher revenue in subsequent periods), we do not believe the GAAP methodology we employ provides sufficient transparency into the economics of our business, including our results of operations, financial condition, and financial leverage. Our floating yield adjustment enables us to provide measures of income that are not impacted by GAAP’s treatment of contractual net cash flows we do not expect to realize at the time of loan assignment. We believe the floating yield adjustment is presented in a manner which reflects both the economic reality of our business and how the business is managed and provides valuable supplemental information to help investors better understand our business, executive compensation, liquidity, and capital resources.

    Senior Notes Adjustment (applied in periods prior to December 31, 2023)

    This non-GAAP adjustment modifies our GAAP financial results to treat the issuance of certain senior notes as a refinancing of certain previously issued senior notes. Our historical adjusted financial information reflects application of the senior notes adjustment as described below in connection with (i) the issuance by us in 2014 of $300.0 million principal amount of 6.125% senior notes due 2021 (the “2021 senior notes”) and the related retirement of our 9.125% senior notes due 2017 (the “2017 senior notes”) and (ii) the issuance by us in 2019 of $400.0 million principal amount of 5.125% senior notes due 2024 (the “2024 senior notes”) and the related retirement of the 2021 senior notes and our 7.375% senior notes due 2023 (the “2023 senior notes”).

    We issued the 2024 senior notes on December 18, 2019. We used a portion of the net proceeds from the 2024 senior notes to repurchase or redeem all of the $300.0 million outstanding principal amount of the 2021 senior notes, of which $148.2 million was repurchased on December 18, 2019 and the remaining $151.8 million was redeemed on January 17, 2020. We used the remaining net proceeds from the 2024 senior notes, together with borrowings under our revolving credit facility, to redeem in full the $250.0 million outstanding principal amount of the 2023 senior notes on March 15, 2020. Under GAAP, the fourth quarter of 2019 included (i) a pre-tax loss on extinguishment of debt of $1.8 million related to the repurchase of 2021 senior notes in the fourth quarter of 2019 and the redemption of the remaining 2021 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.3 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020. Under GAAP, the first quarter of 2020 included (i) a pre-tax loss on extinguishment of debt of $7.4 million related to the redemption of 2023 senior notes in the first quarter of 2020 and (ii) additional interest expense of $0.4 million on $160.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2024 senior notes and repurchase of 2021 senior notes in the fourth quarter of 2019 to the redemption of the remaining 2021 senior notes in the first quarter of 2020.

    We issued the 2021 senior notes on January 22, 2014. On February 21, 2014, we used the net proceeds from the 2021 senior notes, together with borrowings under our revolving credit facilities, to redeem in full the $350.0 million outstanding principal amount of the 2017 senior notes. Under GAAP, the first quarter of 2014 included (i) a pre-tax loss on extinguishment of debt of $21.8 million related to the redemption of the 2017 senior notes in the first quarter of 2014 and (ii) additional interest expense of $1.4 million on $276.0 million of additional outstanding debt caused by the one month lag from the issuance of the 2021 senior notes to the redemption of the 2017 senior notes.

    Under our non-GAAP approach, the loss on extinguishment of debt and additional interest expense that were recognized for GAAP purposes were in each case deferred as debt issuance costs to be recognized ratably as interest expense over the term of the newly issued notes. In addition, for adjusted average capital purposes, the impact of additional outstanding debt related to the lag from the issuance of the new notes to the redemption of the previously issued notes was in each case deferred to be recognized ratably over the term of the newly issued notes. Upon the issuance of the 2024 senior notes in the fourth quarter of 2019, the outstanding unamortized balances of the non-GAAP adjustments related to the 2021 senior notes were deferred and were recognized ratably over the term of the 2024 senior notes, until the repurchase and redemption of the 2024 senior notes in December 2023.

    We believe the application of the senior notes adjustment as described above provides a more accurate reflection of the performance of our business, since we were recognizing the costs incurred with these transactions in a manner consistent with how we recognize the costs incurred when we periodically refinance our other debt facilities. We have determined not to apply the senior notes adjustments in connection with (i) the issuance by us in December 2023 of our 9.250% senior notes due 2028 and the related retirement of the 2024 senior notes or (ii) the issuance by us in February 2025 of our 6.625% senior notes due 2030 and the related retirement of the 2026 senior notes, because the adjustments would not be material.

    Cautionary Statement Regarding Forward-Looking Information

    We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. Statements in this release that are not historical facts, such as those using terms like “may,” “will,” “should,” “believe,” “expect,” “anticipate,” “assume,” “forecast,” “estimate,” “intend,” “plan,” “target,” or similar expressions, and those regarding our future results, plans, and objectives, are “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements represent our outlook only as of the date of this release. Actual results could differ materially from these forward-looking statements since the statements are based on our current expectations, which are subject to risks and uncertainties. Factors that might cause such a difference include, but are not limited to, the factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the Securities and Exchange Commission (the “SEC”) on February 12, 2025, and Item 1A in Part II of our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025, filed with the SEC on April 30, 2025, and other risk factors discussed herein or listed from time to time in our reports filed with the SEC and the following:

    Industry, Operational, and Macroeconomic Risks

    • Our inability to accurately forecast and estimate the amount and timing of future collections could have a material adverse effect on results of operations.
    • Due to competition from traditional financing sources and non-traditional lenders, we may not be able to compete successfully.
    • Adverse changes in economic conditions, the automobile or finance industries, or the non-prime consumer market could adversely affect our financial position, liquidity, and results of operations, the ability of key vendors that we depend on to supply us with services, and our ability to enter into future financing transactions.
    • Reliance on third parties to administer our ancillary product offerings could adversely affect our business and financial results.
    • We are dependent on our senior management, and the loss of any of these individuals or an inability to hire additional team members could adversely affect our ability to operate profitably.
    • Our reputation is a key asset to our business, and our business may be affected by how we are perceived in the marketplace.
    • An outbreak of contagious disease or other public health emergency could materially and adversely affect our business, financial condition, liquidity, and results of operations.
    • The concentration in several states of automobile dealers who participate in our programs could adversely affect us.
    • Reliance on our outsourced business functions could adversely affect our business.
    • Our ability to hire and retain foreign engineering personnel could be hindered by immigration restrictions.
    • We may be unable to execute our business strategy due to current economic conditions.
    • Natural disasters, climate change, military conflicts, acts of war, terrorist attacks and threats, or the escalation of military activity in response to terrorist attacks or otherwise may negatively affect our business, financial condition, and results of operations.
    • Governmental or market responses to climate change and related environmental issues could have a material adverse effect on our business.
    • A small number of our shareholders have the ability to significantly influence matters requiring shareholder approval and such shareholders have interests which may conflict with the interests of our other security holders.

    Capital and Liquidity Risks

    • We may be unable to continue to access or renew funding sources and obtain capital needed to maintain and grow our business.
    • The terms of our debt limit how we conduct our business.
    • A violation of the terms of our asset-backed secured financings or revolving secured warehouse facilities could have a material adverse impact on our operations.
    • Our substantial debt could negatively impact our business, prevent us from satisfying our debt obligations, and adversely affect our financial condition.
    • We may not be able to generate sufficient cash flows to service our outstanding debt and fund operations and may be forced to take other actions to satisfy our obligations under such debt.
    • Interest rate fluctuations may adversely affect our borrowing costs, profitability, and liquidity.
    • Reduction in our credit rating could increase the cost of our funding from, and restrict our access to, the capital markets and adversely affect our liquidity, financial condition, and results of operations.
    • We may incur substantially more debt and other liabilities. This could exacerbate further the risks associated with our current debt levels.
    • The conditions of the U.S. and international capital markets may adversely affect lenders with which we have relationships, causing us to incur additional costs and reducing our sources of liquidity, which may adversely affect our financial position, liquidity, and results of operations.

    Technology and Cybersecurity Risks

    • Our dependence on technology could have a material adverse effect on our business.
    • We depend on secure information technology, and a breach of our systems or those of our third-party service providers could result in our experiencing significant financial, legal, and reputational exposure and could materially adversely affect our business, financial condition, and results of operations.
    • Our use of electronic contracts could impact our ability to perfect our ownership or security interest in Consumer Loans.
    • Failure to properly safeguard our proprietary business information or confidential consumer and team member personal information could subject us to liability, decrease our profitability, and damage our reputation.
    • The development and use of artificial intelligence presents risks and challenges that may adversely impact our business.

    Legal and Regulatory Risks

    • Litigation we are involved in from time to time may adversely affect our financial condition, results of operations, and cash flows.
    • Changes in tax laws and the resolution of uncertain income tax matters could have a material adverse effect on our results of operations and cash flows from operations.
    • The regulations to which we are or may become subject could result in a material adverse effect on our business.

    Other factors not currently anticipated by management may also materially and adversely affect our business, financial condition, and results of operations. We do not undertake, and expressly disclaim any obligation, to update or alter our statements, whether as a result of new information or future events or otherwise, except as required by applicable law.

    Webcast Details

    We will host a webcast on April 30, 2025 at 5:00 p.m. Eastern Time to discuss our first quarter results. The webcast can be accessed live by visiting the “Investor Relations” section of our website at ir.creditacceptance.com or by telephone as described below. Only persons accessing the webcast by telephone will be able to pose questions to the presenters during the webcast. A replay and transcript of the webcast will be archived in the “Investor Relations” section of our website. 

    To participate in the webcast by telephone, you must pre-register at https://register.vevent.com/register/BI27a0a72b8917474a9a1c5c1f1a465ad7, or through the link posted on the “Investor Relations” section of our website at ir.creditacceptance.com. Upon registration you will be provided with the dial-in number and a unique PIN to access the webcast by telephone.

    Description of Credit Acceptance Corporation

    We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

    CREDIT ACCEPTANCE CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (UNAUDITED)
            

    (Dollars in millions, except per share data) For the Three Months Ended March 31,
        2025     2024
    Revenue:      
    Finance charges $         526.7   $         469.2
    Premiums earned           23.5             21.9
    Other income           20.9             16.9
    Total revenue           571.1             508.0
    Costs and expenses:      
    Salaries and wages           88.6             78.5
    General and administrative           22.1             23.7
    Sales and marketing           24.8             23.9
    Total operating expenses           135.5             126.1
           
    Provision for credit losses on forecast changes           76.3             87.2
    Provision for credit losses on new Consumer Loan assignments           85.6             98.8
    Total provision for credit losses           161.9             186.0
           
    Interest           114.7             92.5
    Provision for claims           16.1             17.0
    Loss on extinguishment of debt           1.2             —  
    Total costs and expenses           429.4             421.6
    Income before provision for income taxes           141.7             86.4
    Provision for income taxes           35.4             22.1
    Net income $         106.3   $         64.3
           
    Net income per share:      
    Basic $         8.79   $         5.15
    Diluted $         8.66   $         5.08
           
    Weighted average shares outstanding:      
    Basic           12,091,027             12,481,139
    Diluted           12,279,446             12,646,529

    CREDIT ACCEPTANCE CORPORATION
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)

    (Dollars in millions, except per share data) As of
      March 31, 2025   December 31, 2024
    ASSETS:      
    Cash and cash equivalents $         528.8      $         343.7   
    Restricted cash and cash equivalents           591.8                501.3   
    Restricted securities available for sale           109.0                106.4   
           
    Loans receivable           11,476.7                11,289.1   
    Allowance for credit losses           (3,498.5)               (3,438.8)  
    Loans receivable, net           7,978.2                7,850.3   
           
    Property and equipment, net           13.7                14.7   
    Income taxes receivable           6.4                4.2   
    Other assets           30.1                34.0   
    Total assets $         9,258.0      $         8,854.6   
           
    LIABILITIES AND SHAREHOLDERS’ EQUITY:      
    Liabilities:      
    Accounts payable and accrued liabilities $         377.0      $         315.8   
    Revolving secured lines of credit           1.4                0.1   
    Secured financing           5,618.0                5,361.5   
    Senior notes           1,085.8                991.3   
    Deferred income taxes, net           320.9                319.1   
    Income taxes payable           144.0                117.2   
    Total liabilities           7,547.1                7,105.0   
           
    Shareholders’ Equity:      
    Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued           —                —   
    Common stock, $.01 par value, 80,000,000 shares authorized, 11,747,851 and 12,048,151 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively           0.1                0.1   
    Paid-in capital           351.7                335.1   
    Retained earnings           1,358.5                1,414.7   
    Accumulated other comprehensive income (loss)           0.6                (0.3)  
    Total shareholders’ equity           1,710.9                1,749.6   
    Total liabilities and shareholders’ equity $         9,258.0      $         8,854.6   

    The MIL Network –

  • MIL-OSI: Medallion Financial Corp. Reports 2025 First Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, April 30, 2025 (GLOBE NEWSWIRE) — Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its results for the quarter ended March 31, 2025.

    March 31, 2025 First Quarter Highlights

    • Net income grew 20% to $12.0 million, or $0.50 per share, compared to $10.0 million, or $0.42 per share, in the prior year quarter.
    • Net interest income grew 7% to $51.4 million from $47.9 million in the prior year quarter.
    • Net interest margin on net loans was 8.25%, compared to 8.39% in the prior year quarter, and on gross loans it was 7.94%, compared to 8.10% in the prior year quarter.
    • Loan originations grew to $281.6 million, compared to $173.1 million in the prior year quarter, and included $136.2 million of strategic partnership loans in the current quarter compared to $15.7 million in the prior year quarter.
    • Loans grew 12% to $2.5 billion as of March 31, 2025, compared to $2.2 billion a year ago.
    • Credit loss provision increased to $22.0 million from $17.2 million in the prior year quarter.
    • The Company declared and paid a quarterly cash dividend of $0.11 per share.
    • Subsequent to March 31, 2025, the Board of Directors increased the quarterly cash dividend to $0.12 per share.

    Executive Commentary – Andrew Murstein, President of Medallion

    “Once again we are pleased with our bottom-line performance and the $0.50 per share earnings this quarter. We have done a great job pivoting fully away from our legacy taxi medallion lending business. Our consumer lending businesses continue to perform well.  Our commercial division, Medallion Capital, which we acquired for approximately 1.1 million MFIN shares back in 1998, had another greater quarter and generated strong equity gains. Since 2015, Medallion Capital has generated $67 million of earnings for our shareholders.

    We originated more than $280 million of loans during the quarter, with strategic partnership loans accounting for nearly half. Strategic partnership loan volume increased to $136 million this quarter up from just $16 million one year ago. We saw delinquencies in both of our consumer loan portfolios improve from a quarter ago.

    Lastly, we are happy to announce that our board of directors has increased our quarterly dividend to $0.12 per share. We look forward to a bright future for our Company and continuing to deliver positive returns to our shareholders.”

    Business Segment Highlights

    Recreation Lending Segment

    • Originations were $86.8 million during the quarter, compared to $105.8 million a year ago.
    • Recreation loans, including loans held for investment and loans held for sale, grew 13% to $1.5 billion, or 62% of total loans, as of March 31, 2025, compared to $1.4 billion a year ago.
    • Interest income grew 15% to $50.5 million for the quarter, from $43.9 million in the prior year quarter.
    • The average interest rate was 15.01% at quarter-end, 15.10% excluding loans held sale, compared to 14.80% a year ago.
    • Recreation loans 90 days or more past due were $7.1 million, or 0.48% of gross recreation loans, as of March 31, 2025, compared to $6.4 million, or 0.48%, a year ago.
    • Allowance for credit loss was 5.00% at quarter-end for loans held for investment, compared to 4.40% a year ago.

    Home Improvement Lending Segment

    • Originations were $48.8 million during the quarter, compared to $51.6 million a year ago.
    • Home improvement loans grew 8% to $812.4 million, or 33% of total loans, as of March 31, 2025, compared to $752.3 million a year ago.
    • Interest income grew 13% to $19.8 million for the quarter, from $17.4 million in the prior year quarter.
    • The average interest rate was 9.83% at quarter-end, compared to 9.60% a year ago.
    • Home improvement loans 90 days or more past due were $1.5 million, or 0.19% of gross home improvement loans, as of March 31, 2025, compared to $1.4 million, or 0.18%, a year ago.
    • Allowance for credit loss was 2.49% at quarter-end, compared to 2.38% a year ago.

    Commercial Lending Segment

    • Commercial loans were $116.1 million at March 31, 2025, compared to $106.6 million a year ago.
    • The average interest rate on the portfolio was 13.14%, compared to 13.00% a year ago.

    Taxi Medallion Lending Segment

    • The Company collected $2.6 million of cash on taxi medallion-related assets during the quarter.
    • Total net taxi medallion assets declined to $6.8 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as of March 31, 2025.

    Capital Allocation

    Quarterly Dividend

    • The Board of Directors declared a quarterly dividend of $0.12 per share, payable on May 30, 2025, to shareholders of record at the close of business on May 15, 2025.

    Stock Repurchase Plan

    • During the first quarter of 2025, the Company repurchased 60,185 shares of its common stock at an average cost of $8.83 per share for $0.5 million.
    • As of March 31, 2025, the Company had $14.9 million remaining under its $40 million stock repurchase program.

    Conference Call Information

    The Company will host a conference call to discuss its first quarter financial results tomorrow, Thursday, May 1, 2025, at 9:00 a.m. Eastern time.

    In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

    How to Participate

    • Date: Thursday, May 1, 2025
    • Time: 9:00 a.m. Eastern time
    • U.S. dial-in number: (833) 816-1412
    • International dial-in number: (412) 317-0504
    • Live webcast: Link to Webcast of 1Q25 Earnings Call

    A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

    Replay Information

    The webcast replay will be available at the Company’s IR website until the next quarter’s results are announced.

    The conference call replay will be available following the end of the call through Thursday, May 8, 2025

    • U.S. dial-in number: (844) 512-2921
    • International dial-in number: (412) 317-6671
    • Passcode: 1019 8552

    About Medallion Financial Corp.

    Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

    Forward-Looking Statements
    Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, the effects of tariffs, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, the settlement of which remains subject to SEC and court approval, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2024 Annual Report on Form 10-K.

    Company Contact:
    Investor Relations
    212-328-2176
    InvestorRelations@medallion.com

     
     
    MEDALLION FINANCIAL CORP.
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)
     
    (Dollars in thousands, except share and per share data)   March 31, 2025     December 31, 2024     March 31, 2024  
    Assets                  
    Cash, cash equivalents, and federal funds sold   $ 157,994     $ 169,572     $ 169,125  
    Investment securities     60,424       54,805       53,038  
    Equity investments     8,997       9,198       16,374  
    Loans held for sale, at lower of amortized cost or fair value     124,733       128,226       —  
    Loans     2,361,700       2,362,796       2,228,426  
    Allowance for credit losses     (100,366 )     (97,368 )     (83,827 )
    Net loans receivable     2,261,334       2,265,428       2,144,599  
    Goodwill and intangible assets, net     169,588       169,949       171,033  
    Property, equipment, and right-of-use lease asset, net     12,814       13,756       14,024  
    Accrued interest receivable     14,437       15,314       12,673  
    Loan collateral in process of foreclosure     9,183       9,932       10,198  
    Other assets     28,234       32,426       27,698  
    Total assets   $ 2,847,738     $ 2,868,606     $ 2,602,388  
    Liabilities                  
    Deposits   $ 2,022,828     $ 2,090,071     $ 1,879,061  
    Long-term debt     199,665       232,159       225,558  
    Short-term borrowings     111,750       49,000       32,500  
    Deferred tax liabilities, net     21,538       20,995       24,846  
    Operating lease liabilities     4,528       5,128       6,710  
    Accrued interest payable     6,610       8,231       6,077  
    Accounts payable and accrued expenses     31,807       24,064       26,186  
    Total liabilities     2,398,726       2,429,648       2,200,938  
    Total stockholders’ equity     380,224       370,170       349,036  
    Non-controlling interest in consolidated subsidiaries     68,788       68,788       68,788  
    Total equity     449,012       438,958       417,824  
    Total liabilities and equity   $ 2,847,738     $ 2,868,606     $ 2,618,762  
    Number of shares outstanding     23,235,030       23,135,624       23,377,564  
    Book value per share   $ 16.36     $ 16.00     $ 14.93  
     
    MEDALLION FINANCIAL CORP.‌
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)‌
     
        Three Months Ended March 31,  
    (Dollars in thousands, except share and per share data)   2025     2024  
    Total interest income   $ 75,425     $ 67,070  
    Total interest expense     24,013       19,153  
    Net interest income     51,412       47,917  
    Provision for credit losses     22,014       17,201  
    Net interest income after provision for credit losses     29,398       30,716  
    Other income            
    Gain on equity investments, net     9,430       4,167  
    Gain on taxi medallion assets, net     843       629  
    Strategic partnership fees     685       326  
    Other income     641       281  
    Total other income, net     11,599       5,403  
    Other expenses            
    Salaries and employee benefits     9,993       9,457  
    Loan servicing fees     2,817       2,470  
    Collection costs     1,537       1,467  
    Regulatory fees     821       977  
    Professional fee costs, net     1,750       771  
    Rent expense     675       657  
    Amortization of intangible assets     361       361  
    Other expenses     2,804       2,065  
    Total other expenses     20,758       18,225  
    Income before income taxes     20,239       17,894  
    Income tax provision     6,713       6,358  
    Net income after taxes     13,526       11,536  
    Less: income attributable to the non-controlling interest     1,512       1,512  
    Total net income attributable to Medallion Financial Corp.   $ 12,014     $ 10,024  
    Basic net income per share   $ 0.53     $ 0.44  
    Diluted net income per share   $ 0.50     $ 0.42  
    Weighted average common shares outstanding            
    Basic     22,570,797       22,641,385  
    Diluted     23,897,167       23,765,045  
    Dividends declared per common share   $ 0.12     $ 0.10  

    The MIL Network –

  • MIL-OSI: Climb Global Solutions Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    EATONTOWN, N.J., April 30, 2025 (GLOBE NEWSWIRE) — Climb Global Solutions, Inc. (NASDAQ:CLMB) (“Climb” or the “Company”), a value-added global IT channel company providing unique sales and distribution solutions for innovative technology vendors, is reporting results for the first quarter ended March 31, 2025.

    First Quarter 2025 Summary vs. Same Year-Ago Quarter

    • Net sales increased 49% to $138.0 million.
    • Net income increased 35% to $3.7 million or $0.81 per diluted share.
    • Adjusted net income (a non-GAAP financial measure defined below) increased 39% to $3.9 million or $0.86 per diluted share.
    • Adjusted EBITDA (a non-GAAP financial measure defined below) increased 38% to $7.6 million.
    • Gross billings (a key operational metric defined below) increased 34% to $474.6 million. Distribution segment gross billings increased 36% to $453.6 million, and Solutions segment gross billings increased 2% to $21.0 million.

    Management Commentary

    “The momentum from our record 2024 has carried into the first quarter, leading to exceptional growth across all key financial metrics,” said CEO Dale Foster. “Our performance was driven by the execution of our core initiatives and the integration of Douglas Stewart Software & Services, LLC (“DSS”) into our operating platform. We drove organic growth in both the U.S. and Europe, demonstrating our ability to deepen relationships with existing partners while signing new, cutting-edge technologies to our line card across geographies.”

    “Looking ahead, we believe that we are well-positioned to continue driving organic growth and further improving operating leverage. While still early, we expect the implementation of our new ERP system to drive meaningful efficiencies across our global operations. We also plan to remain active with M&A as we evaluate accretive targets that can enhance our comprehensive offerings and expand our presence in both North America and overseas. These initiatives, coupled with our robust balance sheet, will enable us to continue executing on our goals and objectives.”

    Dividend

    Subsequent to quarter end, on April 28, 2025, Climb’s Board of Directors declared a quarterly dividend of $0.17 per share of its common stock payable on May 16, 2025, to shareholders of record on May 12, 2025.

    First Quarter 2025 Financial Results

    Net sales in the first quarter of 2025 increased 49% to $138.0 million compared to $92.4 million for the same period in 2024. This reflects organic growth from new and existing vendors, as well as contribution from the Company’s acquisition of DSS on July 31, 2024. In addition, gross billings in the first quarter of 2025 increased 34% to $474.6 million compared to $355.3 million in the year-ago period.

    Gross profit in the first quarter of 2025 increased 37% to $23.4 million compared to $17.0 million for the same period in 2024. The increase was driven by organic growth from new and existing vendors in both North America and Europe, as well as contribution from DSS.

    Selling, general, and administrative (“SG&A”) expenses in the first quarter of 2025 were $16.8 million compared to $12.5 million in the year-ago period. DSS represented $1.1 million of the increase. SG&A as a percentage of gross billings remained flat at 3.5% for the first quarter of 2025 compared to the year-ago period.

    Net income in the first quarter of 2025 increased 35% to $3.7 million or $0.81 per diluted share, compared to $2.7 million or $0.60 per diluted share for the same period in 2024. Adjusted net income increased 39% to $3.9 million or $0.86 per diluted share, compared to $2.8 million or $0.62 per diluted share for the year-ago period.

    Adjusted EBITDA in the first quarter of 2025 increased 38% to $7.6 million compared to $5.5 million for the same period in 2024. The increase was primarily driven by organic growth from both new and existing vendors, as well as contribution from the Company’s acquisition of DSS. Effective margin, which is defined as adjusted EBITDA as a percentage of gross profit, increased 20 basis points to 32.7% compared to 32.5% for the same period in 2024.

    On March 31, 2025, cash and cash equivalents were $32.5 million compared to $29.8 million on December 31, 2024, while working capital increased by $4.4 million during this period. The increase in cash was primarily attributed to the timing of receivable collections and payables. Climb had $0.6 million of outstanding debt on March 31, 2025, with no borrowings outstanding under its $50 million revolving credit facility.

    For more information on the non-GAAP financial measures discussed in this press release, please see the section titled, “Non-GAAP Financial Measures,” and the reconciliations of non-GAAP financial measures to their nearest comparable GAAP financial measures at the end of this press release.

    Conference Call

    The Company will conduct a conference call tomorrow, May 1, 2025, at 8:30 a.m. Eastern time to discuss its results for the first quarter ended March 31, 2025.

    Climb management will host the conference call, followed by a question-and-answer period.

    Date: Thursday, May 1, 2025
    Time: 8:30 a.m. Eastern time
    Toll-free dial-in number: (800) 267-6316
    International dial-in number: (203) 518-9783
    Conference ID: CLIMB
    Webcast: Climb’s Q1 2025 Conference Call

    If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

    The conference call will also be available for replay on the investor relations section of the Company’s website at www.climbglobalsolutions.com.

    About Climb Global Solutions

    Climb Global Solutions, Inc. (NASDAQ:CLMB) is a value-added global IT distribution and solutions company specializing in emerging and innovative technologies. Climb operates across the U.S., Canada and Europe through multiple business units, including Climb Channel Solutions, Grey Matter and Climb Global Services. The Company provides IT distribution and solutions for companies in the Security, Data Management, Connectivity, Storage & HCI, Virtualization & Cloud, and Software & ALM industries.

    Additional information can be found by visiting www.climbglobalsolutions.com.

    Non-GAAP Financial Measures

    Climb Global Solutions uses non-GAAP financial measures, including adjusted net income and adjusted EBITDA, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Climb’s financial results under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The attached tables provide definitions of these measures and a reconciliation of each non-GAAP financial measure to the most nearly comparable measure under U.S. GAAP.

    Key Operational Metric

    Gross Billings

    Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, includes amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.

    Forward-Looking Statements

    The statements in this release, other than statements of historical fact, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements are subject to certain risks and uncertainties. Many of the forward-looking statements may be identified by words such as ”look forward,” “believes,” “expects,” “intends,” “anticipates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “under construction,” “in development,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “goal,” “aim,” “commit,” or similar expressions, or when we discuss our priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations. In this press release, the forward-looking statements relate to, among other things, declaring and reaffirming our strategic goals, future operating results, and the effects and potential benefits of the strategic acquisition on our business. Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include, without limitation, our ability to recognize the anticipated benefits of the acquisition of Douglas Stewart Software & Services, LLC, the continued acceptance of the Company’s distribution channel by vendors and customers, the timely availability and acceptance of new products, product mix, market conditions, competitive pricing pressures, the successful integration of acquisitions, contribution of key vendor relationships and support programs, inflation, import and export tariffs, interest rate risk and impact thereof, as well as factors that affect the software industry in general. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described in the section entitled “Risk Factors” contained in Item 1A. of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time in the Company’s filings with the Securities and Exchange Commission.

    Company Contact

    Matthew Sullivan
    Chief Financial Officer
    (732) 847-2451
    MatthewS@ClimbCS.com

    Investor Relations Contact

    Sean Mansouri, CFA or Aaron D’Souza
    Elevate IR
    (720) 330-2829
    CLMB@elevate-ir.com

             
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Amounts in thousands, except share and per share amounts)
             
        March 31, 2025   December 31, 2024
             
    ASSETS
             
    Current assets        
    Cash and cash equivalents   $ 32,461     $ 29,778  
    Accounts receivable, net of allowance for doubtful accounts of $734 and $588, respectively     240,230       341,597  
    Inventory, net     2,328       2,447  
    Prepaid expenses and other current assets     6,144       6,874  
    Total current assets     281,163       380,696  
             
    Equipment and leasehold improvements, net     13,264       12,853  
    Goodwill     35,675       34,924  
    Other intangibles, net     35,904       36,550  
    Right-of-use assets, net     1,841       1,965  
    Accounts receivable long-term, net     1,183       1,174  
    Other assets     715       824  
    Deferred income tax assets     308       193  
             
    Total assets   $ 370,053     $ 469,179  
             
    LIABILITIES AND STOCKHOLDERS’ EQUITY
             
    Current liabilities        
    Accounts payable and accrued expenses   $ 266,452     $ 370,397  
    Lease liability, current portion     688       654  
    Term loan, current portion     566       560  
    Total current liabilities     267,706       371,611  
             
    Lease liability, net of current portion     1,502       1,685  
    Deferred income tax liabilities     4,862       4,723  
    Term loan, net of current portion     48       191  
    Non-current liabilities     381       381  
             
    Total liabilities     274,499       378,591  
             
             
    Stockholders’ equity        
    Common stock, $.01 par value; 10,000,000 shares authorized, 5,284,500 shares issued, and 4,584,055 and 4,601,302 shares outstanding, respectively     53       53  
    Additional paid-in capital     39,532       37,977  
    Treasury stock, at cost, 700,445 and 683,198 shares, respectively     (14,397 )     (13,337 )
    Retained earnings     71,705       68,787  
    Accumulated other comprehensive loss     (1,339 )     (2,892 )
    Total stockholders’ equity     95,554       90,588  
    Total liabilities and stockholders’ equity   $ 370,053     $ 469,179  
    CLIMB GLOBAL SOLUTIONS, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
    (Unaudited)
    (Amounts in thousands, except per share data)
             
        Three months ended
        March 31,
          2025       2024  
             
    Net Sales   $ 138,044     $ 92,422  
             
    Cost of sales     114,648       75,402  
             
    Gross profit     23,396       17,020  
             
             
    Selling, general and administrative expenses     16,755       12,523  
    Depreciation & amortization expense     1,737       871  
    Acquisition related costs     126       123  
    Total selling, general and administrative expenses     18,618       13,517  
             
    Income from operations     4,778       3,503  
             
    Interest, net     186       203  
    Foreign currency transaction loss     (580 )     (85 )
    Change in fair value of acquisition contingent consideration   (136 )     –  
    Income before provision for income taxes     4,248       3,621  
    Provision for income taxes     564       890  
             
    Net income   $ 3,684     $ 2,731  
             
    Income per common share – Basic   $ 0.81     $ 0.60  
    Income per common share – Diluted   $ 0.81     $ 0.60  
             
    Weighted average common shares outstanding – Basic     4,497       4,438  
    Weighted average common shares outstanding – Diluted     4,497       4,438  
             
    Dividends paid per common share   $ 0.17     $ 0.17  
             
             
    Reconciliation of GAAP and Non-GAAP Financial Measures (unaudited)
    (Amounts in thousands, except per share data)
             
    The table below presents net income reconciled to adjusted EBITDA (Non-GAAP) (1):
             
        Three months ended
        March 31,   March 31,
          2025       2024  
             
    Net income   $ 3,684     $ 2,731  
    Provision for income taxes     564       890  
    Depreciation and amortization     1,737       871  
    Interest expense     69       101  
    EBITDA     6,054       4,593  
    Share-based compensation     1,323       822  
    Acquisition related costs     126       123  
    Change in fair value of acquisition contingent consideration   136       –  
    Adjusted EBITDA   $ 7,639     $ 5,538  
             
             
        Three months ended
        March 31,   March 31,
    Components of interest, net     2025       2024  
             
    Amortization of discount on accounts receivable with extended payment terms   $ (12 )   $ (6 )
    Interest income     (243 )     (298 )
    Interest expense     69       101  
    Interest, net   $ (186 )   $ (203 )


    (1) We define adjusted EBITDA, as net income, plus provision for income taxes, depreciation, amortization, share-based compensation, interest, acquisition related costs and change in fair value of acquisition contingent consideration. We define effective margin as adjusted EBITDA as a percentage of gross profit. We provided a reconciliation of adjusted EBITDA to net income, which is the most directly comparable US GAAP measure. We use adjusted EBITDA as a supplemental measure of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results. Adjusted EBITDA is also a component to our financial covenants in our credit facility. Our use of adjusted EBITDA has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under US GAAP. In addition, other companies, including companies in our industry, might calculate adjusted EBITDA, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The table below presents net income reconciled to adjusted net income (Non-GAAP) (2):
             
        Three months ended
        March 31,   March 31,
          2025       2024  
             
    Net income   $ 3,684     $ 2,731  
    Acquisition related costs, net of income taxes     95       92  
    Change in fair value of acquisition contingent consideration   136       –  
    Adjusted net income   $ 3,915     $ 2,823  
             
    Adjusted net income per common share – diluted   $ 0.86     $ 0.62  


    (2) We define adjusted net income as net income excluding acquisition related costs, net of income taxes and the change in fair value of acquisition contingent consideration. We provided a reconciliation of adjusted net income to net income, which is the most directly comparable U.S. GAAP measure. We use adjusted net income and adjusted net income per common share as supplemental measures of our performance to gain insight into our businesses profitability, operating performance and performance trends, and to provide management and investors a useful measure for period-to-period comparisons by excluding items that management believes are not reflective of our underlying operating performance. Accordingly, we believe that adjusted net income and adjust net income per common share provide useful information to investors and others in understanding and evaluating our operating results. Our use of adjusted net income has limitations, and you should not consider it in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. In addition, other companies, including companies in our industry, might calculate adjusted net income, or similarly titled measures differently, which may reduce their usefulness as comparative measures.

    The table below presents the operational metric of gross billings by segment (3):
             
        Three months ended
        March 31,   March 31,
          2025       2024  
             
    Distribution gross billings   $ 453,575     $ 334,636  
    Solutions gross billings     21,021       20,632  
    Total gross billings   $ 474,596     $ 355,268  


    (3) Gross billings are the total dollar value of customer purchases of goods and services during the period, net of customer returns and credit memos, sales, or other taxes. Gross billings include the transaction values for certain sales transactions that are recognized on a net basis, and, therefore, include amounts that will not be recognized as revenue. We use gross billings as an operational metric to assess the volume of transactions or market share for our business as well as to understand changes in our accounts receivable and accounts payable. We believe gross billings will aid investors in the same manner.

    The MIL Network –

  • MIL-OSI: Robinhood Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Revenues up 50% year-over-year to $927 million 
    Net Deposits grow to a record $18.0 billion, and Robinhood Gold Subscribers reached a record 3.2 million 
    Net Income up 114% year-over-year to $336 million 
    Diluted EPS up 106% year-over-year to $0.37 
    Board of directors increases share repurchase authorization by $500 million to $1.5 billion

    MENLO PARK, Calif., April 30, 2025 (GLOBE NEWSWIRE) — Robinhood Markets, Inc. (“Robinhood”) (NASDAQ: HOOD) today announced financial results for the first quarter of 2025, which ended March 31, 2025.

    “This quarter, we significantly accelerated product innovation across our key initiatives, highlighted by the announcement of Robinhood Strategies, Banking, and Cortex,” said Vlad Tenev, Chair and CEO of Robinhood. “Customers have clearly responded — demonstrated by record-breaking net deposits, Robinhood Gold subscriptions, and options volume, as well as robust year-over-year growth in trading across all asset classes.”

    “We started the year off strong, driving market share gains, closing the acquisition of TradePMR, and remaining disciplined on expenses,” said Jason Warnick, Chief Financial Officer of Robinhood. “As a result, in Q1 we grew revenues by 50 percent year-over-year and EPS by over 100 percent. It’s also great to see strong customer engagement to start Q2. Additionally, we continue to return capital to shareholders and increased our share repurchase authorization by $500 million to $1.5 billion, reflecting management and the board’s confidence in our financial strength and future growth prospects.”

    First Quarter Results

    • Total net revenues increased 50% year-over-year to $927 million.
      • Transaction-based revenues increased 77% year-over-year to $583 million, primarily driven by cryptocurrencies revenue of $252 million, up 100%, options revenue of $240 million, up 56%, and equities revenue of $56 million, up 44%.
      • Net interest revenues increased 14% year-over-year to $290 million, primarily driven by growth in interest-earning assets and securities lending activity, partially offset by lower short-term interest rates.
      • Other revenues increased 54% year-over-year to $54 million, primarily due to increased Robinhood Gold subscribers.
    • Net income increased 114% year-over-year to $336 million.
    • Diluted earnings per share (EPS) increased 106% year-over-year to $0.37.
    • Total operating expenses increased 21% year-over-year to $557 million.
      • Adjusted Operating Expenses and Share-Based Compensation (SBC) (non-GAAP) increased 16% year-over-year to $533 million, which includes costs related to TradePMR.
    • Adjusted EBITDA (non-GAAP) increased 90% year-over-year to $470 million.
    • Funded Customers increased by 1.9 million, or 8%, year-over-year to 25.8 million.
      • Investment Accounts increased by 2.6 million, or 11%, year-over-year to 27.0 million.
    • Total Platform Assets1 increased 70% year-over-year to $221 billion, primarily driven by continued Net Deposits and the acquisition of TradePMR.
    • Net Deposits were $18.0 billion, an annualized growth rate of 37% relative to Total Platform Assets at the end of Q4 2024. Over the past twelve months, Net Deposits were $57.3 billion, a growth rate of 44% relative to Total Platform Assets at the end of Q1 2024.
    • Average Revenue Per User (ARPU) increased 39% year-over-year to $145.
    • Robinhood Gold Subscribers increased by 1.5 million, or 90%, year-over-year to 3.2 million.
    • Cash and cash equivalents totaled $4.4 billion compared with $4.7 billion at the end of Q1 2024.
    • Share repurchases were $322 million, representing 7.2 million shares of our Class A common stock at an average price per share of $44.87. This more than offset the 2.0 million shares of Class A common stock issued in connection with the acquisition of TradePMR.

    __________________________________

    1 Total Platform Assets include $180 billion of Assets Under Custody and $41 billion of assets managed by Registered Investment Advisors (“RIAs”) using TradePMR’s platform that are not custodied by Robinhood. Refer to Key Performance Metrics for more detail.

    Highlights

    Robinhood executes on strategy with robust product velocity in Q1, releasing cutting-edge products for customers, with more in the pipeline

    • Enhanced Products for Active Traders – Robinhood continues to roll out advanced capabilities and tools for active traders aimed at making trading faster, clearer, and more intuitive. The desktop trading platform, Robinhood Legend, now features increased speed, support for index options and crypto, and new indicators and charts. In March, Robinhood expanded its prediction markets offering by launching a hub and giving customers the opportunity to trade on the outcomes of some of the world’s biggest events. Over the last six months customers have traded more than 1 billion event contracts.
    • Increasing Wallet Share by Serving the Entirety of Customers’ Financial Needs – During its second annual Gold keynote event in March, Robinhood unveiled new advisory, banking, and AI offerings: Robinhood Strategies, Robinhood Banking, and Robinhood Cortex. With plans to roll out to all customers in the coming weeks, Robinhood Strategies is already serving more than 40 thousand customers and managing more than $100 million in customer assets as of April 25, 2025. In February, Robinhood also closed its acquisition of TradePMR, an RIA custodial platform, with approximately $41 billion in assets managed by RIAs as of March 31, 2025.
    • Building a Global Financial Ecosystem – Robinhood continues to make progress internationally, with over 150 thousand customers across the UK and EU. The acquisition of globally-scaled cryptocurrency exchange Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions.
    • Robinhood Board of Directors Authorizes Additional $500 million in Share Repurchases – Following the authorization of a $1 billion share repurchase program announced in May 2024, the Robinhood board of directors has authorized an additional $500 million, bringing the program total to $1.5 billion. Through April 25, 2025, 20 million shares of Class A common stock have been repurchased at an average price of $33.40, representing a total $667 million. The remaining authorization now totals approximately $833 million which management expects to execute over the next roughly two years, with flexibility to accelerate if market conditions warrant.

    Additional Q1 2025 Operating Data

    • Robinhood Retirement AUC increased over 200% year-over-year to a record $14.4 billion.
    • Cash Sweep increased 48% year-over-year to a record $28.2 billion.
    • Margin Book increased 115% year-over-year to a record $8.8 billion.
    • Equity Notional Trading Volumes increased 84% year-over-year to $413 billion.
    • Options Contracts Traded increased 46% year-over-year to a record 500 million.
    • Crypto Notional Trading Volumes increased over 28% year-over-year to $46 billion.

    Conference Call and Livestream Information

    Robinhood will host a video call to discuss its results at 2 p.m. PT / 5 p.m. ET today, April 30, 2025. The video call can be accessed at investors.robinhood.com, along with the earnings press release and accompanying slide presentation. The event will also be live streamed to YouTube and X.com via Robinhood’s official channels, @RobinhoodApp.

    Following the call, a replay and transcript will also be available at investors.robinhood.com.

    Financial Outlook

    The paragraph below provides information on our 2025 expense plan and outlook. We are not providing a 2025 outlook for total operating expenses and have not reconciled our 2025 outlook for Adjusted Operating Expenses and SBC to the most directly comparable GAAP financial measure, total operating expenses, because we are unable to predict with reasonable certainty the impact of certain items without unreasonable effort. These items include, but are not limited to, provision for credit losses and significant regulatory expenses which may be material and could have a significant impact on total operating expenses for 2025.

    Our 2025 expense plan includes growth investments in new products, features, and international expansion while also getting more efficient in our existing businesses. Our initial outlook for combined Adjusted Operating Expenses and SBC for full-year 2025 provided at Q4 2024 Earnings (February 12, 2025) was $2.0 billion to $2.1 billion, which did not include expenses related to our acquisition of TradePMR. As a result of the acquisition closing in the first quarter, we are updating our outlook to $2.085 billion to $2.185 billion to include $85 million of anticipated costs related to TradePMR. This expense outlook does not include provision for credit losses, costs related to our pending acquisition of Bitstamp, potential significant regulatory matters, or other significant expenses (such as impairments, restructuring charges, and other business acquisition- or disposition-related expenses) that may arise or accruals we may determine in the future are required, as we are unable to accurately predict the size or timing of such matters, expenses or accruals at this time.

    Actual results might differ materially from our outlook due to several factors, including the rate of growth in Funded Customers and our effectiveness to cross-sell products which affects variable marketing costs, the degree to which we are successful in managing credit losses and preventing fraud, and our ability to manage web-hosting expenses efficiently, among other factors. See “Non-GAAP Financial Measures” for more information on Adjusted Operating Expenses and SBC, including significant items that we believe are not indicative of our ongoing expenses that would be adjusted out of total operating expenses (GAAP) to get to Adjusted Operating Expenses and SBC (non-GAAP) should they occur.

    About Robinhood

    Robinhood Markets, Inc. (NASDAQ: HOOD) transformed financial services by introducing commission-free stock trading and democratizing access to the markets for millions of investors. Today, Robinhood lets you trade stocks, options, futures (which includes options on futures, swaps, and event contracts), and crypto, invest for retirement, and earn with Robinhood Gold. Headquartered in Menlo Park, California, Robinhood puts customers in the driver’s seat, delivering unprecedented value and products intentionally designed for a new generation of investors. Additional information about Robinhood can be found at www.robinhood.com.

    Robinhood uses the “Overview” tab of its Investor Relations website (accessible at investors.robinhood.com/overview) and its Newsroom (accessible at newsroom.aboutrobinhood.com), as means of disclosing information to the public in a broad, non-exclusionary manner for purposes of the U.S. Securities and Exchange Commission’s (“SEC”) Regulation Fair Disclosure (Reg. FD). Investors should routinely monitor those web pages, in addition to Robinhood’s press releases, SEC filings, and public conference calls and webcasts, as information posted on them could be deemed to be material information.

    “Robinhood” and the Robinhood feather logo are registered trademarks of Robinhood Markets, Inc. All other names are trademarks and/or registered trademarks of their respective owners.

    Contacts

    Investors:
    ir@robinhood.com    		 Press:
    press@robinhood.com
       
    ROBINHOOD MARKETS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)  
     
     
      December 31,   March 31,
    (in millions, except share and per share data) 2024   2025
    Assets      
    Current assets:      
    Cash and cash equivalents $ 4,332     $ 4,416  
    Cash, cash equivalents, and securities segregated under federal and other regulations   4,724       4,442  
    Receivables from brokers, dealers, and clearing organizations   471       267  
    Receivables from users, net   8,239       9,167  
    Securities borrowed   3,236       4,114  
    Deposits with clearing organizations   489       641  
    User-held fractional shares   2,530       2,531  
    Held-to-maturity investments   398       192  
    Prepaid expenses   75       89  
    Deferred customer match incentives   100       113  
    Other current assets   509       243  
    Total current assets   25,103       26,215  
    Property, software, and equipment, net   139       140  
    Goodwill   179       292  
    Intangible assets, net   38       109  
    Non-current deferred customer match incentives   195       238  
    Other non-current assets, including non-current prepaid expenses of $17 as of December 31, 2024 and March 31, 2025   533       523  
    Total assets $ 26,187     $ 27,517  
    Liabilities and stockholders’ equity      
    Current liabilities:      
    Accounts payable and accrued expenses $ 397     $ 319  
    Payables to users   7,448       7,116  
    Securities loaned   7,463       9,098  
    Fractional shares repurchase obligation   2,530       2,531  
    Other current liabilities   266       367  
    Total current liabilities   18,104       19,431  
    Other non-current liabilities   111       133  
    Total liabilities   18,215       19,564  
    Commitments and contingencies      
    Stockholders’ equity:      
    Preferred stock, $0.0001 par value. 210,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.   —       —  
    Class A common stock, $0.0001 par value. 21,000,000,000 shares authorized, 764,903,997 shares issued and outstanding as of December 31, 2024; 21,000,000,000 shares authorized, 767,854,773 shares issued and outstanding as of March 31, 2025.   —       —  
    Class B common stock, $0.0001 par value. 700,000,000 shares authorized, 119,588,986 shares issued and outstanding as of December 31, 2024; 700,000,000 shares authorized, 116,720,012 shares issued and outstanding as of March 31, 2025.   —       —  
    Class C common stock, $0.0001 par value. 7,000,000,000 shares authorized, no shares issued and outstanding as of December 31, 2024 and March 31, 2025.   —       —  
    Additional paid-in capital   12,008       11,652  
    Accumulated other comprehensive loss   (1 )     —  
    Accumulated deficit   (4,035 )     (3,699 )
    Total stockholders’ equity   7,972       7,953  
    Total liabilities and stockholders’ equity $ 26,187     $ 27,517  
                   
    ROBINHOOD MARKETS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Unaudited)
     
      Three Months Ended 
    March 31,    		         Three Months Ended
    December 31,    		      
    (in millions, except share, per share, and percentage data) 2024   2025   YOY%
    Change    		   2024   QOQ%
    Change
    Revenues:                  
    Transaction-based revenues $ 329   $ 583   77 %   $ 672     (13 )%
    Net interest revenues   254     290   14 %     296     (2 )%
    Other revenues   35     54   54 %     46     17 %
    Total net revenues   618     927   50 %     1,014     (9 )%
                       
    Operating expenses(1)(2):                  
    Brokerage and transaction   35     50   43 %     50     — %
    Technology and development   196     214   9 %     208     3 %
    Operations   28     31   11 %     29     7 %
    Provision for credit losses   16     24   50 %     19     26 %
    Marketing   67     105   57 %     82     28 %
    General and administrative   118     133   13 %     70     90 %
    Total operating expenses   460     557   21 %     458     22 %
                       
    Other income, net   4     1   (75 )%     2     (50 )%
    Income before income taxes   162     371   129 %     558     (34 )%
    Provision for (benefit from) income taxes   5     35   600 %     (358 )   NM  
    Net income $ 157   $ 336   114 %   $ 916     (63 )%
    Net income attributable to common stockholders:                  
    Basic $ 157   $ 336       $ 916      
    Diluted $ 157   $ 336       $ 916      
    Net income per share attributable to common stockholders:                  
    Basic $ 0.18   $ 0.38       $ 1.04      
    Diluted $ 0.18   $ 0.37       $ 1.01      
    Weighted-average shares used to compute net income per share attributable to common stockholders:                  
    Basic   875,319,407     884,577,603         883,884,676      
    Diluted   895,779,155     909,241,619         907,767,796      
                               

    ROBINHOOD MARKETS, INC. 
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
    (Unaudited)

    ________________
    (1)      The following table presents operating expenses as a percent of total net revenues:

      Three Months Ended 
    March 31,    		   Three Months
    Ended
    December 31,
      2024   2025   2024
    Brokerage and transaction 5 %   6 %   5 %
    Technology and development 32 %   23 %   20 %
    Operations 5 %   3 %   3 %
    Provision for credit losses 2 %   3 %   2 %
    Marketing 11 %   11 %   8 %
    General and administrative 19 %   14 %   7 %
    Total operating expenses 74 %   60 %   45 %
                     

    (2)      The following table presents the SBC on our unaudited condensed consolidated statements of operations for the periods indicated:

      Three Months Ended 
    March 31,    		   Three Months
    Ended
    December 31,
    (in millions) 2024   2025   2024
    Brokerage and transaction $ 2   $ 2   $ 2
    Technology and development   44     44     48
    Operations   2     1     2
    Marketing   2     2     2
    General and administrative   12     24     23
    Total SBC $ 62   $ 73   $ 77
                     
    ROBINHOOD MARKETS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited)
     
      Three Months Ended
    March 31,
    (in millions) 2024   2025
    Operating activities:      
    Net income $ 157     $ 336  
    Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
    Depreciation and amortization   17       20  
    Provision for credit losses   16       24  
    Share-based compensation   62       73  
    Other   —       4  
    Changes in operating assets and liabilities:      
    Securities segregated under federal and other regulations   (692 )     397  
    Receivables from brokers, dealers, and clearing organizations   (118 )     206  
    Receivables from users, net   (796 )     (911 )
    Securities borrowed   (505 )     (878 )
    Deposits with clearing organizations   (247 )     (152 )
    Current and non-current prepaid expenses   —       (13 )
    Current and non-current deferred customer match incentives   (74 )     (56 )
    Other current and non-current assets   (83 )     351  
    Accounts payable and accrued expenses   (46 )     (124 )
    Payables to users   977       (332 )
    Securities loaned   668       1,635  
    Other current and non-current liabilities   41       62  
    Net cash provided by (used in) operating activities   (623 )     642  
    Investing activities:      
    Purchases of property, software, and equipment   (2 )     (2 )
    Capitalization of internally developed software   (7 )     (9 )
    Business acquisition, net of cash and cash equivalents acquired   —       (150 )
    Purchases of held-to-maturity investments   (171 )     —  
    Proceeds from maturities of held-to-maturity investments   154       208  
    Purchases of credit card receivables by Credit Card Funding Trust   (29 )     (549 )
    Collections of purchased credit card receivables   11       511  
    Asset acquisition, net of cash acquired   (3 )     —  
    Net cash provided by (used in) investing activities   (47 )     9  
    Financing activities:      
    Proceeds from exercise of stock options   4       7  
    Taxes paid related to net share settlement of equity awards   (40 )     (120 )
    Repurchase of Class A common stock   —       (322 )
    Borrowings by the Credit Card Funding Trust   17       24  
    Change in principal collected from customers due to Coastal Bank   3       10  
    Payments of debt issuance costs   (14 )     (16 )
    Net cash used in financing activities   (30 )     (417 )
    Effect of foreign exchange rate changes on cash and cash equivalents   —       1  
    Net increase (decrease) in cash, cash equivalents, segregated cash, and restricted cash   (700 )     235  
    Cash, cash equivalents, segregated cash, and restricted cash, beginning of the period   9,346       8,695  
    Cash, cash equivalents, segregated cash, and restricted cash, end of the period $ 8,646     $ 8,930  
    Reconciliation of cash, cash equivalents, segregated cash and restricted cash, end of the period:
    Cash and cash equivalents, end of the period $ 4,717     $ 4,416  
    Segregated cash and cash equivalents, end of the period   3,829       4,442  
    Restricted cash in other current assets, end of the period   83       54  
    Restricted cash in other non-current assets, end of the period   17       18  
    Cash, cash equivalents, segregated cash and restricted cash, end of the period $ 8,646     $ 8,930  
    Supplemental disclosures:      
    Cash paid for interest $ 7     $ 9  
    Cash paid for income taxes, net of refund received $ 2     $ 29  
                   
    Reconciliation of GAAP to Non-GAAP Results
    (Unaudited)
     
      Three Months Ended 
    March 31,    		   Three Months
    Ended 
    December 31,
    (in millions, except for percentage data) 2024   2025   2024
    Net income $ 157     $ 336     $ 916  
    Net margin   25 %     36 %     90 %
    Add:          
    Interest expenses related to credit facilities   6       6       6  
    Provision for (benefit from) income taxes   5       35       (358 )
    Depreciation and amortization   17       20       22  
    EBITDA (non-GAAP)   185       397       586  
    Add:          
    SBC   62       73       77  
    Significant legal and tax settlements and reserves(1)   —       —       (50 )
    Adjusted EBITDA (non-GAAP) $ 247     $ 470     $ 613  
    Adjusted EBITDA margin (non-GAAP)   40 %     51 %     60 %
                           
      Three Months Ended
    March 31,    		   Three Months
    Ended
    December 31,
    (in millions) 2024   2025   2024
    Total operating expenses (GAAP) $ 460   $ 557   $ 458  
    Less:          
    SBC   62     73     77  
    Provision for credit losses(2)   —     24     —  
    Significant legal and tax settlements and reserves(1)   —     —     (50 )
    Adjusted Operating Expenses (Non-GAAP) $ 398   $ 460   $ 431  
                       
      Three Months Ended
    March 31,    		   Three Months
    Ended
    December 31,
    (in millions) 2024   2025   2024
    Total operating expenses (GAAP) $ 460   $ 557   $ 458  
    Less:          
    SBC   62     73     77  
    Provision for credit losses(2)   —     24     —  
    Significant legal and tax settlements and reserves(1)   —     —     (50 )
    Adjusted Operating Expenses (Non-GAAP)   398     460     431  
    Add:          
    SBC   62     73     77  
    Adjusted Operating Expenses and SBC (Non-GAAP) $ 460   $ 533     508  
                       

    ________________

    (1) Amounts for the three months ended December 31, 2024 included a $55 million benefit due to a reversal of an accrual as part of a regulatory settlement.
    (2) Starting in Q1 2025, Adjusted Operating Expenses and Adjusted Operating Expenses and SBC no longer include provision for credit losses.

    Cautionary Note Regarding Forward-Looking Statements

    This press release contains forward-looking statements regarding the expected financial performance of Robinhood Markets, Inc. and its consolidated subsidiaries (“we,” “Robinhood,” or the “Company”) and our strategic and operational plans, including (among others) statements regarding that our increased share repurchase authorization reflects management and the board’s confidence in our financial strength and future growth prospects; that we’re releasing cutting-edge products for customers with more in the pipeline; that Robinhood Strategies, Robinhood Banking, and Robinhood Cortex will connect customers to a world-class financial team; that the Robinhood Gold Credit Card continues to roll out to customers; that the acquisition of Bitstamp Ltd. is on track to close in the middle of this year, subject to customary closing conditions; that management expects to execute the remaining share repurchase authorization over the next roughly two years, with flexibility to accelerate if market conditions warrant; and all statements and information under the heading “Financial Outlook”. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “believe,” “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “estimate,” “predict,” “potential,” or “continue,” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Our forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause our actual future results, performance, or achievements to differ materially from any future results expressed or implied in this press release. Reported results should not be considered an indication of future performance. Factors that contribute to the uncertain nature of our forward-looking statements include, among others: our rapid and continuing expansion, including continuing to introduce new products and services on our platforms as well as geographic expansion; the difficulty of managing our business effectively, including the size of our workforce, and the risk of declining or negative growth; the fluctuations in our financial results and key metrics from quarter to quarter; our reliance on transaction-based revenue, including payment for order flow (“PFOF”), the risk of new regulation or bans on PFOF and similar practices, and the addition of our new fee-based model for cryptocurrency; our exposure to fluctuations in interest rates and rapidly changing interest rate environments; the difficulty of raising additional capital (to provide liquidity needs and support business growth and objectives) on reasonable terms, if at all; the need to maintain capital levels required by regulators and self-regulatory organizations; the risk that we might mishandle the cash, securities, and cryptocurrencies we hold on behalf of customers, and our exposure to liability for processing, operational, or technical errors in clearing functions; the impact of negative publicity on our brand and reputation; the risk that changes in business, economic, or political conditions that impact the global financial markets, or a systemic market event, might harm our business; our dependence on key employees and a skilled workforce; the difficulty of complying with an extensive, complex, and changing regulatory environment and the need to adjust our business model in response to new or modified laws and regulations; the possibility of adverse developments in pending litigation and regulatory investigations; the effects of competition; our need to innovate and acquire or invest in new products, services, technologies, and geographies in order to attract and retain customers and deepen their engagement with us in order to maintain growth; our reliance on third parties to perform some key functions and the risk that processing, operational or technological failures could impair the availability or stability of our platforms; the risk of cybersecurity incidents, theft, data breaches, and other online attacks; the difficulty of processing customer data in compliance with privacy laws; our need as a regulated financial services company to develop and maintain effective compliance and risk management infrastructures; the risks associated with incorporating artificial intelligence technologies into some of our products and processes; the volatility of cryptocurrency prices and trading volumes; the risk that our platforms and services could be exploited to facilitate illegal payments; and the risk that substantial future sales of Class A common stock in the public market, or the perception that they may occur, could cause the price of our stock to fall. Because some of these risks and uncertainties cannot be predicted or quantified and some are beyond our control, you should not rely on our forward-looking statements as predictions of future events. More information about potential risks and uncertainties that could affect our business and financial results can be found in Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, as well as in our other filings with the SEC, all of which are available on the SEC’s web site at www.sec.gov. Moreover, we operate in a very competitive and rapidly changing environment; new risks and uncertainties may emerge from time to time, and it is not possible for us to predict all risks nor identify all uncertainties. The events and circumstances reflected in our forward-looking statements might not be achieved and actual results could differ materially from those projected in the forward-looking statements. Except as otherwise noted, all forward-looking statements in this press release are made as of the date of this press release, April 30, 2025, and are based on information and estimates available to us at this time. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we cannot guarantee future results, performance, or achievements. Except as required by law, Robinhood assumes no obligation to update any of the statements in this press release whether as a result of any new information, future events, changed circumstances, or otherwise. You should read this press release with the understanding that our actual future results, performance, events, and circumstances might be materially different from what we expect.

    Non-GAAP Financial Measures

    We collect and analyze operating and financial data to evaluate the health of our business, allocate our resources and assess our performance. In addition to total net revenues, net income, and other results under GAAP, we utilize non-GAAP calculations of adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), Adjusted EBITDA Margin, Adjusted Operating Expenses, and Adjusted Operating Expenses and SBC. This non-GAAP financial information is presented for supplemental informational purposes only, should not be considered in isolation or as a substitute for, or superior to, financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are provided in the financial tables included in this press release.

    Adjusted EBITDA

    Adjusted EBITDA is defined as net income, excluding (i) interest expenses related to credit facilities, (ii) provision for (benefit from) income taxes, (iii) depreciation and amortization, (iv) SBC, (v) significant legal and tax settlements and reserves, and (vi) other significant gains, losses, and expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing results.

    The above items are excluded from our Adjusted EBITDA measure because these items are non-cash in nature, or because the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful. We believe Adjusted EBITDA provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Moreover, Adjusted EBITDA is a key measurement used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

    Adjusted EBITDA Margin

    Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by total net revenues. The most directly comparable GAAP measure is net margin (calculated as net income divided by total net revenues). We believe Adjusted EBITDA Margin provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our business performance. Adjusted EBITDA Margin is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting.

    Adjusted Operating Expenses

    Adjusted Operating Expenses is defined as GAAP total operating expenses minus (i) SBC, (ii) provision for credit losses, (iii) significant legal and tax settlements and reserves, and (iv) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses) that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. We believe Adjusted Operating Expenses provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Starting in Q1 2025, Adjusted Operating Expenses no longer includes provision for credit losses.

    Adjusted Operating Expenses and SBC

    Adjusted Operating Expenses and SBC is defined as GAAP total operating expenses minus (i) provision for credit losses, (ii) significant legal and tax settlements and reserves, and (iii) other significant expenses (such as impairments, restructuring charges, and business acquisition- or disposition-related expenses), that we believe are not indicative of our ongoing expenses. The amount and timing of the excluded items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods less meaningful. Unlike Adjusted Operating Expenses, Adjusted Operating Expenses and SBC does not adjust for SBC. We believe Adjusted Operating Expense and SBC provides useful information to investors and others in understanding and evaluating our results of operations, as well as providing a useful measure for period-to-period comparisons of our cost structure. Adjusted Operating Expenses and SBC is used by our management internally to make operating decisions, including those related to operating expenses, evaluate performance, and perform strategic planning and annual budgeting. Starting in Q1 2025, Adjusted Operating Expenses and SBC no longer includes provision for credit losses.

    Key Performance Metrics

    In addition to the measures presented in our unaudited condensed consolidated financial statements, we use the following key performance metrics to help us evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions.

    Our acquisition of TradePMR closed in February 2025. As a result, we are now reporting Total Platform Assets which includes our previously reported Assets Under Custody key performance metric. Total Platform Assets is our previously reported Assets Under Custody metric plus assets managed by RIAs using TradePMR’s platform that are not custodied by us (and therefore would not have been included in the previously reported Assets Under Custody metric). Additionally, we have included total RIA customers in our Funded Customers key performance metric, their accounts in the definition of Investment Accounts, and the appropriate RIA customer balances in our Cash Sweep and Margin Book additional operating metrics. RIA client figures are not included in Robinhood Retirement AUC. Due to data limitations, we have not included RIA client figures in our Net Deposits key performance metric.

    Assets Under Custody

    We define Assets Under Custody as the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), and cash held by users in their accounts, net of receivables from users, as of a stated date or period end on a trade date basis. As mentioned above, we introduced a new Key Performance Metric called Total Platform Assets, which includes Assets Under Custody and is defined below.

    Funded Customers

    We define a Funded Customer as a unique person who has at least one account with a Robinhood entity and, within the past 45 calendar days (a) had an account balance that was greater than zero (excluding amounts that are deposited into a Funded Customer account by the Company with no action taken by the unique person) or (b) completed a transaction using any such account. Individuals who share a funded joint investing account (which launched in July 2024) are each considered to be a Funded Customer. Individuals who are customers of RIAs that use the TradePMR platform are also considered Funded Customers as of the end of the period.

    Total Platform Assets

    We define Total Platform Assets as the sum of the fair value of all equities, options, cryptocurrency, futures (including options on futures, swaps, and event contracts), cash held by users in their accounts, net of receivables from users (previously reported as Assets Under Custody), and any such assets managed by RIAs using TradePMR’s platform that are not custodied by Robinhood, as of a stated date or period end on a trade date basis. Net Deposits and net market gains (losses) drive the change in Total Platform Assets in any given period.

    Net Deposits

    We define Net Deposits as all cash deposits and asset transfers from customers, as well as dividends, interest, and cash or assets earned in connection with Company promotions (such as account transfer and retirement match incentives and free stock bonuses) received by customers, net of reversals, customer cash withdrawals, margin interest, Robinhood Gold subscription fees, and assets transferred off of our platforms for a stated period. Prior to the second quarter of 2024, Net Deposits did not include inflows from cash or assets earned in connection with Company promotions, although we have not restated amounts in prior periods as the impact to those figures was immaterial.

    Average Revenue Per User (“ARPU”)

    We define ARPU as total revenue for a given period divided by the average number of Funded Customers on the last day of that period and the last day of the immediately preceding period. Figures in this press release represent ARPU annualized for each three-month period presented.

    Robinhood Gold Subscribers

    We define a Robinhood Gold Subscriber as a unique person who has at least one account with a Robinhood entity and who, as of the end of the relevant period (a) is subscribed to Robinhood Gold and (b) has made at least one Robinhood Gold subscription fee payment.

    Additional Operating Metrics

    Robinhood Retirement AUC

    We define Robinhood Retirement AUC as the total Assets Under Custody in traditional individual retirement accounts (“IRAs”) and Roth IRAs. This does not include accounts with an RIA using TradePMR’s platform.

    Cash Sweep

    We define Cash Sweep as the period-end total amount of participating users’ uninvested brokerage cash that has been automatically “swept” or moved from their brokerage accounts into deposits for their benefit at a network of program banks. This is an off-balance-sheet amount. Robinhood earns a net interest spread on Cash Sweep balances based on the interest rate offered by the banks less the interest rate given to users as stated in our program terms. This includes balances from customers of RIAs using TradePMR’s platform.

    Margin Book

    We define Margin Book as our period-end aggregate outstanding margin loan balances receivable (i.e., the period-end total amount we are owed by customers on loans made for the purchase of securities, supported by a pledge of assets in their margin-enabled brokerage accounts). This includes margin loan balances from customers of RIAs using TradePMR’s platform.

    Notional Trading Volume

    We define Notional Trading Volume or Notional Volume for any specified asset class as the aggregate dollar value (purchase price or sale price as applicable) of trades executed in that asset class over a specified period of time.

    Options Contracts Traded

    We define Options Contracts Traded as the total number of options contracts bought or sold over a specified period of time. Each contract generally entitles the holder to trade 100 shares of the underlying stock.

    Glossary Terms

    Investment Accounts

    We define an Investment Account as a funded individual brokerage account, a funded joint investing account, a funded IRA, or an account with an RIA using TradePMR’s platform. As of March 31, 2025, a Funded Customer can have up to five Investment Accounts – individual brokerage account, joint investing account (which launched in July 2024), traditional IRA, Roth IRA, and RIA custody account using TradePMR’s platform.

    Robinhood Gold Adoption Rate

    We define the Robinhood Gold adoption rate as end of period Robinhood Gold Subscribers divided by end of period Funded Customers.

    Growth Rate and Annualized Growth Rate with respect to Net Deposits

    Growth rate is calculated as aggregate Net Deposits over a specified 12 month period, divided by Total Platform Assets for the fiscal quarter that immediately precedes such 12 month period. Annualized growth rate is calculated as Net Deposits for a specified quarter multiplied by 4 and divided by Total Platform Assets for the immediately preceding quarter.

    The MIL Network –

  • MIL-OSI: Pathfinder Bancorp, Inc. Announces Financial Results for First Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    OSWEGO, N.Y., April 30, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the first quarter ended March 31, 2025.

    The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $3.0 million or $0.41 per diluted share in the first quarter of 2025, compared to $2.1 million or $0.34 per share in the first quarter of 2024. In the fourth quarter of 2024, the Company reported net income attributable to common shareholders of $3.9 million or $0.63 per share, and included a benefit of approximately $1.4 million from a gain on the sale of its insurance agency, net of taxes and transaction-related expenses.

    First Quarter 2025 Highlights and Key Developments

    • Total deposits were $1.26 billion at period end, and grew by 5.0% in the first quarter and 10.3% from March 31, 2024. Core deposits also grew to 78.31% of total deposits at period end from 76.86% on December 31, 2024 and 69.17% on March 31, 2024. In addition to funding lending activity in the quarter, the Company’s low-cost deposits enabled reductions in higher-cost borrowings to $44.6 million at period end, down 49.3% in the first quarter and 67.5% from March 31, 2024.
    • Total loans were $912.2 million at period end, compared to $919.0 million on December 31, 2024 and $891.5 million on March 31, 2024. Commercial loans were $542.7 million or 59.5% of total loans at period end, compared to $539.7 million on December 31, 2024 and $525.6 million on March 31, 2024.
    • Nonperforming loans declined to $13.2 million at period end, and improved by 40.1% during the first quarter and 32.7% from March 31, 2024. Nonperforming loans also declined to 1.45% of total loans at period end, and improved from 2.40% on December 31, 2024 and 2.20% on March 31, 2024.
    • Net interest income was $11.4 million, and increased $1.0 million from the linked quarter and $2.0 million from the first quarter of 2024, while net interest margin (“NIM”) expanded to 3.31% from 3.02% in the fourth quarter of 2024 and 2.75% in the year-ago period. Approximately $347,000 of net interest income and 10 basis points of NIM in the first quarter of 2025 reflected 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees.
    • Pre-tax, pre-provision (“PTPP”) net income grew to $4.2 million, and increased 26.0% from the linked quarter and 16.9% from the year-ago period. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses.
    • The efficiency ratio improved to 66.84%, down from 72.01% in the linked quarter and 68.29% in the year-ago period. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

    “Pathfinder’s solid first quarter results reflect the strength of our balance sheet and our growing core deposit franchise. Our continued focus on disciplined loan and deposit pricing has helped expand net interest margin in a challenging economic environment while our efforts toward optimizing non-interest expenses have improved our efficiency measures,” said President and Chief Executive Officer James A. Dowd. “We remain deeply committed to strengthening our proactive credit risk management practices and view our current efforts as the beginning of a sustained, long-term strategy to enhance the quality of our loan portfolio.”

    Dowd added, “Our strong results this year and the close relationships we’ve built with businesses and neighbors throughout Central New York give us good reason to feel optimistic. Major investments in our region’s growing tech sector are creating new opportunities, and we’re proud to be part of that momentum. At the same time, we’re staying close to our customers and keeping a careful eye on how recent economic changes and national policy decisions are affecting families and local businesses across our communities.”

    Net Interest Income and Net Interest Margin
    First quarter 2025 net interest income was $11.4 million, an increase of $1.0 million, or 10.0%, from the fourth quarter of 2024. A decrease in interest and dividend income of $85,000 from the linked quarter was primarily attributed to average yield decreases of 43 basis points on tax-exempt investment securities and 25 basis points on taxable investment securities, partially offset by a 10 basis points increase in the average yield on loans that included 15 basis points from 2024 interest recovered from loans removed from nonaccrual status and income from prepayment fees. The corresponding decreases in income from tax-exempt and taxable investment securities from the linked quarter were $43,000 and $198,000, respectively. The increase in interest from loans of $149,000 from the prior quarter reflected a benefit of approximately $347,000, including $247,000 of 2024 interest recovered from loans removed from nonaccrual status and $100,000 of first quarter 2025 prepayment fees.

    A decrease in interest expense of $1.1 million from the linked quarter was primarily attributed to average cost decreases of 36 basis points for interest-bearing deposits and 143 basis points for borrowings. The corresponding decreases in deposits and borrowings expense from the linked quarter were $878,000 and $226,000, respectively. These reductions reflect continued changes in the Bank’s funding mix, including growing core deposits, as well as deliberate deposit pricing adjustments and significant reductions in borrowings.

    Net interest margin was 3.31% in the first quarter of 2025 compared to 3.02% in the linked quarter. The increase reflected significant reductions in deposit and borrowing costs, as well as a benefit of 10 basis points from 2024 recovered interest and first quarter 2025 prepayment fees.

    Noninterest Income
    First quarter 2025 noninterest income totaled $1.2 million and no longer includes contributions from the insurance agency business sold in October 2024. Linked quarter noninterest income totaled $4.9 million, including $3.2 million in non-recurring pre-tax gains and revenues associated with the sale of the Company’s insurance agency in 2024. First quarter 2024 noninterest income totaled $1.7 million, including $397,000 in insurance revenue.

    Compared to the linked quarter, first quarter 2025 noninterest income reflected a reduction of $264,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses and seasonal reductions estimated at $100,000, as well as decreases of $31,000 in service charges on deposit accounts and $7,000 in earnings and gain on bank owned life insurance (“BOLI”). Compared to the linked quarter, first quarter 2025 noninterest income also reflected increases of $52,000 in net realized gains on sales of marketable equity securities and $26,000 in gains on sales of loans and foreclosed real estate, as well as a decrease of $257,000 in net realized gains on sales and redemptions of investment securities.

    Compared to the year-ago period, first quarter 2025 noninterest income included increases of $65,000 in service charges on deposit accounts, $13,000 in loan servicing fees, and $5,000 in earnings and gain on BOLI, as well as a decline of $118,000 in debit card interchange fees driven by $158,000 of non-recurring catch up expenses related to prior periods. Noninterest income growth from the year-ago quarter also reflected a $140,000 decrease in net realized losses on sales and redemptions of investment securities and increases of $110,000 in net realized gains on sales of marketable equity securities and $47,000 in gains on sales of loans and foreclosed real estate.

    Noninterest Expense
    Noninterest expense totaled $8.4 million in the first quarter of 2025 and no longer includes costs for the insurance agency business sold in October 2024. Noninterest expense was $8.5 million in the linked quarter and $7.7 million in the year-ago period, including expenses associated with the insurance agency of $456,000 and $285,000, respectively.

    Salaries and benefits were $4.5 million in the first quarter of 2025, increasing $327,000 from the linked quarter and $121,000 from the year-ago period. The increase from the linked quarter reflected a $174,000 increase in stock-based compensation and a $96,000 increase in payroll tax. The increase from the first quarter of 2024 was primarily attributed to a $95,000 increase in stock-based compensation and $123,000 in other salary and benefits expenses associated with personnel in the East Syracuse branch acquired in July 2024. 

    Building and occupancy was $1.3 million in the first quarter of 2025, increasing $93,000 and $531,000 from the linked and year-ago quarters, respectively. The increase from the linked quarter reflected an $89,000 seasonal increase in utilities and snow removal expenses. The increase from the first quarter of last year was primarily due to ongoing facilities-related costs associated with operating the East Syracuse branch acquired in July 2024.

    Data processing expense was $666,000 in the first quarter of 2025, decreasing $55,000 from the linked quarter and increasing $138,000 from the year-ago period. The decrease from the fourth quarter of 2024 was primarily attributed to a $42,000 ATM processing expense for new customer card issuances. The increase from the first quarter of 2024 was primarily attributed to the ongoing operations of the East Syracuse branch acquired in July 2024.

    Annualized noninterest expense represented 2.33% of average assets in the first quarter of 2025, compared to 2.33% and 2.16% in the linked and year-ago periods, including costs associated with transactions of the divested insurance agency business. The efficiency ratio was 66.84% in the first quarter of 2025, compared to 72.01% and 68.29% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

    Net Income
    For the first quarter of 2025, net income attributable to common shareholders was $3.0 million, or $0.48 per basic share and $0.41 per diluted share. The difference between basic and diluted earnings per share reflects the accounting impact of restricted stock units granted to senior executive officers during the period under the 2024 Equity Incentive Plan, which was approved by shareholders at the 2024 annual meeting. Linked quarter net income was $3.9 million, including a net benefit of approximately $1.4 million from the gain on the sale of its insurance agency, or $0.63 per basic and diluted share. First quarter 2024 net income totaled $2.2 million or $0.34 per basic and diluted share.

    Statement of Financial Condition
    As of March 31, 2025, the Company’s statement of financial condition reflects total assets of $1.50 billion, compared to $1.47 billion and $1.45 billion recorded on December 31, 2024 and March 31, 2024, respectively.

    Loans totaled $912.2 million on March 31, 2025, decreasing 0.7% during the first quarter and increasing 2.3% from one year prior. Consumer and residential loans totaled $371.0 million on March 31, 2025, decreasing 2.6% during the first quarter and increasing 1.2% from one year prior. Commercial loans totaled $542.7 million on March 31, 2025, increasing 0.6% during the first quarter and 3.3% from one year prior.

    With respect to liabilities, deposits totaled $1.26 billion on March 31, 2025, increasing 5.0% during the first quarter and 10.3% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $44.6 million on March 31, 2025 as compared to $88.1 million on December 31 and $137.4 million on March 31, 2024.

    Shareholders’ equity totaled $124.9 million on March 31, 2025, increasing $3.4 million or 2.8% in the first quarter and increasing $3.1 million or 2.5% from one year prior. Compared to the prior quarter, the first quarter 2025 increase primarily reflects a $2.3 million increase in retained earnings, a $712,000 decrease in accumulated other comprehensive loss (“AOCL”), and a $353,000 increase in additional paid in capital. The noncontrolling interest, previously included in equity on the Statements of Financial Condition, was eliminated in October 2024 upon the sale of the Company’s 51% ownership interest in the insurance agency.

    Asset Quality
    The Company’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

    Nonperforming loans were $13.2 million or 1.45% of total loans on March 31, 2025, improving from $22.1 million or 2.40% of total loans on December 31, 2024 and $19.7 million or 2.20% of total loans on March 31, 2024.

    Net charge offs (“NCOs”) after recoveries were $340,000 or an annualized 0.15% of average loans in the first quarter of 2025, with gross charge offs for consumer loans, purchased loan pools, and commercial loans offsetting recoveries in each of these categories. NCOs were $1.0 million or an annualized 0.44% of average loans in the linked quarter and $30,000 or 0.01% in the prior year period.

    Provision for credit loss expense was $457,000 in the first quarter of 2025 reflecting lower levels of nonperforming loans and NCOs in the period and qualitative factors in the Company’s reserve model. The provision was $988,000 and $726,000 in the linked and year-ago quarters, respectively.

    The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.4 million on March 31, 2025, compared to $17.2 million on December 31, 2024 and $16.7 million on March 31, 2024. As a percentage of total loans, ACL represented 1.91% on March 31, 2025, 1.88% on December 31, 2024, and 1.87% on March 31, 2024.

    Liquidity
    The Company has diligently ensured a strong liquidity profile as of March 31, 2025 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

    The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.26 billion on March 31, 2025, $1.20 billion on December 31, 2024, and $1.15 billion on March 31, 2024. Core deposits represented 78.31% of total deposits on March 31, 2025, 76.86% on December 31, 2024, and 69.17% on March 31, 2024. The Bank continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

    At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $133.3 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $46.6 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

    Cash Dividend Declared
    On March 31, 2025, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

    In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by April 18, 2025 will be eligible for the dividend, which is scheduled for disbursement on May 9, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

    Evaluating the Company’s market performance, the closing stock price as of March 31, 2025 stood at $16.44 per share. This positions the annualized dividend yield at 2.43%.

    About Pathfinder Bancorp, Inc.

    Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage, and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At March 31, 2025, the Oswego-headquartered Company had assets of $1.50 billion, loans of $912.2 million, and deposits of $1.26 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

    Forward-Looking Statements
    Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov. 

    This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial measure.

    Investor/Media Contacts
    James A. Dowd, President, CEO
    Justin K. Bigham, Senior Vice President, CFO
    Telephone: (315) 343-0057

    PATHFINDER BANCORP, INC.                              
    Selected Financial Information (Unaudited)                              
    (Amounts in thousands, except per share amounts)                              
                                   
        2025
    		   2024
    SELECTED BALANCE SHEET DATA:   March 31,     December 31,     September 30,     June 30,     March 31,  
    ASSETS:                              
    Cash and due from banks   $ 18,606     $ 13,963     $ 18,923     $ 12,022     $ 13,565  
    Interest-earning deposits     32,862       17,609       16,401       19,797       15,658  
    Total cash and cash equivalents     51,468       31,572       35,324       31,819       29,223  
    Available-for-sale securities, at fair value     284,051       269,331       271,977       274,977       279,012  
    Held-to-maturity securities, at amortized cost     155,704       158,683       161,385       166,271       172,648  
    Marketable equity securities, at fair value     4,401       4,076       3,872       3,793       3,342  
    Federal Home Loan Bank stock, at cost     2,906       4,590       5,401       8,702       7,031  
    Loans     912,150       918,986       921,660       888,263       891,531  
    Less: Allowance for credit losses     17,407       17,243       17,274       16,892       16,655  
    Loans receivable, net     894,743       901,743       904,386       871,371       874,876  
    Premises and equipment, net     19,233       19,009       18,989       18,878       18,332  
    Assets held-for-sale     –       –       –       3,042       3,042  
    Operating lease right-of-use assets     1,356       1,391       1,425       1,459       1,493  
    Finance lease right-of-use assets     16,478       16,676       16,873       4,004       4,038  
    Accrued interest receivable     6,748       6,881       6,806       7,076       7,170  
    Foreclosed real estate     –       –       –       60       82  
    Intangible assets, net     5,832       5,989       6,217       76       80  
    Goodwill     5,056       5,056       5,752       4,536       4,536  
    Bank owned life insurance     24,889       24,727       24,560       24,967       24,799  
    Other assets     22,472       25,150       20,159       25,180       23,968  
    Total assets   $ 1,495,337     $ 1,474,874     $ 1,483,126     $ 1,446,211     $ 1,453,672  
                                   
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                              
    Deposits:                              
    Interest-bearing deposits   $ 1,061,166     $ 990,805     $ 986,103     $ 932,132     $ 969,692  
    Noninterest-bearing deposits     203,314       213,719       210,110       169,145       176,421  
    Total deposits     1,264,480       1,204,524       1,196,213       1,101,277       1,146,113  
    Short-term borrowings     27,000       61,000       60,315       127,577       91,577  
    Long-term borrowings     17,628       27,068       39,769       45,869       45,869  
    Subordinated debt     30,156       30,107       30,057       30,008       29,961  
    Accrued interest payable     844       546       236       2,092       1,963  
    Operating lease liabilities     1,560       1,591       1,621       1,652       1,682  
    Finance lease liabilities     16,655       16,745       16,829       4,359       4,370  
    Other liabilities     12,118       11,810       16,986       9,203       9,505  
    Total liabilities     1,370,441       1,353,391       1,362,026       1,322,037       1,331,040  
    Shareholders’ equity:                              
    Voting common stock shares issued and outstanding     4,761,182       4,745,366       4,719,788       4,719,788       4,719,788  
    Voting common stock     48       47       47       47       47  
    Non-Voting common stock     14       14       14       14       14  
    Additional paid in capital     53,103       52,750       53,231       53,182       53,151  
    Retained earnings     80,163       77,816       73,670       78,936       77,558  
    Accumulated other comprehensive loss     (8,432 )     (9,144 )     (6,716 )     (8,786 )     (8,862 )
    Unearned ESOP shares     –       –       –       (45 )     (90 )
    Total Pathfinder Bancorp, Inc. shareholders’ equity     124,896       121,483       120,246       123,348       121,818  
    Noncontrolling interest     –       –       854       826       814  
    Total equity     124,896       121,483       121,100       124,174       122,632  
    Total liabilities and shareholders’ equity   $ 1,495,337     $ 1,474,874     $ 1,483,126     $ 1,446,211     $ 1,453,672  
     

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

          2025     2024
    SELECTED INCOME STATEMENT DATA:   Q1     Q4     Q3     Q2     Q1  
    Interest and dividend income:                              
    Loans, including fees   $ 13,672     $ 13,523     $ 14,425     $ 12,489     $ 12,268  
    Debt securities:                              
    Taxable     5,185       5,312       5,664       5,736       5,607  
    Tax-exempt     402       445       469       498       508  
    Dividends     93       164       149       178       129  
    Federal funds sold and interest-earning deposits     89       82       492       121       98  
    Total interest and dividend income     19,441       19,526       21,199       19,022       18,610  
    Interest expense:                              
    Interest on deposits     6,945       7,823       7,633       7,626       7,411  
    Interest on short-term borrowings     545       700       1,136       1,226       1,114  
    Interest on long-term borrowings     65       136       202       201       194  
    Interest on subordinated debt     475       490       496       489       491  
    Total interest expense     8,030       9,149       9,467       9,542       9,210  
    Net interest income     11,411       10,377       11,732       9,480       9,400  
    Provision for (benefit from) credit losses:                              
    Loans     504       988       9,104       304       710  
    Held-to-maturity securities     –       (5 )     (31 )     (74 )     15  
    Unfunded commitments     (47 )     5       (104 )     60       1  
    Total provision for credit losses     457       988       8,969       290       726  
    Net interest income after provision for credit losses     10,954       9,389       2,763       9,190       8,674  
    Noninterest income:                              
    Service charges on deposit accounts     374       405       392       330       309  
    Earnings and gain on bank owned life insurance     162       169       361       167       157  
    Loan servicing fees     101       96       79       112       88  
    Net realized (losses) gains on sales and redemptions of investment securities     (8 )     249       (188 )     16       (148 )
    Gain on asset sale 1 & 2     –       3,169       –       –       –  
    Net realized gains (losses) on sales of marketable equity securities     218       166       62       (139 )     108  
    Gains on sales of loans and foreclosed real estate     65       39       90       40       18  
    Loss on sale of premises and equipment     –       –       (36 )     –       –  
    Debit card interchange fees     1       265       300       191       119  
    Insurance agency revenue 1     –       49       367       260       397  
    Other charges, commissions & fees     284       299       280       234       689  
    Total noninterest income     1,197       4,906       1,707       1,211       1,737  
    Noninterest expense:                              
    Salaries and employee benefits     4,450       4,123       4,959       4,399       4,329  
    Building and occupancy     1,347       1,254       1,134       914       816  
    Data processing     666       721       672       550       528  
    Professional and other services     606       608       1,820       696       562  
    Advertising     141       218       165       116       105  
    FDIC assessments     229       231       228       228       229  
    Audits and exams     114       123       123       123       170  
    Insurance agency expense 1     –       456       308       232       285  
    Community service activities     11       19       20       39       52  
    Foreclosed real estate expenses     21       20       27       30       25  
    Other expenses     691       771       803       581       605  
    Total noninterest expense     8,433       8,544       10,259       7,908       7,706  
    Income (loss) before provision for income taxes     3,718       5,751       (5,789 )     2,493       2,705  
    Provision (benefit) for income taxes     744       492       (1,173 )     481       532  
    Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.     2,974       5,259       (4,616 )     2,012       2,173  
    Net income attributable to noncontrolling interest 1     –       1,352       28       12       53  
    Net income (loss) attributable to Pathfinder Bancorp Inc.   $ 2,974     $ 3,907     $ (4,644 )   $ 2,000     $ 2,120  
    Voting Earnings per common share – basic   $ 0.48     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Voting Earnings per common share – diluted   $ 0.41     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Series A Non-Voting Earnings per common share- basic   $ 0.48     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Series A Non-Voting Earnings per common share- diluted   $ 0.41     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Dividends per common share (Voting and Series A Non-Voting)   $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.10  
     

    1 Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements. The Company sold its 51% membership interest in the Agency in October 2024.
    2 The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

          2025     2024
    FINANCIAL HIGHLIGHTS:   Q1     Q4     Q3     Q2     Q1  
    Selected Ratios:                              
    Return on average assets     0.81 %     1.07 %     -1.25 %     0.56 %     0.59 %
    Return on average common equity     9.64 %     12.85 %     -14.79 %     6.49 %     7.01 %
    Return on average equity     9.64 %     12.85 %     -14.79 %     6.49 %     7.01 %
    Return on average tangible common equity 1     10.52 %     14.17 %     -15.28 %     6.78 %     7.32 %
    Net interest margin     3.31 %     3.02 %     3.34 %     2.78 %     2.75 %
    Loans / deposits     72.14 %     76.29 %     77.05 %     80.66 %     77.79 %
    Core deposits/deposits 2     78.31 %     76.86 %     77.45 %     67.98 %     69.17 %
    Annualized non-interest expense / average assets     2.33 %     2.33 %     2.75 %     2.19 %     2.16 %
    Commercial real estate / risk-based capital 3     182.62 %     186.73 %     189.47 %     169.73 %     163.93 %
    Efficiency ratio 1     66.84 %     72.01 %     75.28 %     74.08 %     68.29 %
                                   
    Other Selected Data:                              
    Average yield on loans     5.97 %     5.87 %     6.31 %     5.64 %     5.48 %
    Average cost of interest bearing deposits     2.76 %     3.12 %     3.11 %     3.21 %     3.07 %
    Average cost of total deposits, including non-interest bearing     2.29 %     2.59 %     2.59 %     2.72 %     2.61 %
    Deposits/branch 4   $ 105,373     $ 100,377     $ 99,684     $ 100,116     $ 104,192  
    Pre-tax, pre-provision net income 1   $ 4,183     $ 3,321     $ 3,368     $ 2,767     $ 3,579  
    Total revenue 1   $ 12,616     $ 11,865     $ 13,627     $ 10,675     $ 11,285  
                                   
    Share and Per Share Data:                              
    Cash dividends per share   $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.10  
    Book value per common share   $ 20.33     $ 19.83     $ 19.71     $ 20.22     $ 19.97  
    Tangible book value per common share 1   $ 18.56     $ 18.03     $ 17.75     $ 19.46     $ 19.21  
    Basic and diluted weighted average shares outstanding – Voting     4,749       4,733       4,714       4,708       4,701  
    Basic earnings per share – Voting 5   $ 0.48     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Diluted earnings per share – Voting 5   $ 0.41     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Basic and diluted weighted average shares outstanding – Series A Non-Voting     1,380       1,380       1,380       1,380       1,380  
    Basic earnings per share – Series A Non-Voting 5   $ 0.48     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Diluted earnings per share – Series A Non-Voting 5   $ 0.41     $ 0.63     $ (0.75 )   $ 0.32     $ 0.34  
    Common shares outstanding at period end     6,144       6,126       6,100       6,100       6,100  
                                   
    Pathfinder Bancorp, Inc. Capital Ratios:                              
    Company tangible common equity to tangible assets 1     7.68 %     7.54 %     7.36 %     8.24 %     8.09 %
    Company Total Core Capital (to Risk-Weighted Assets)     15.89 %     15.66 %     15.55 %     16.19 %     16.23 %
    Company Tier 1 Capital (to Risk-Weighted Assets)     12.24 %     12.00 %     11.84 %     12.31 %     12.33 %
    Company Tier 1 Common Equity (to Risk-Weighted Assets)     11.75 %     11.51 %     11.33 %     11.83 %     11.85 %
    Company Tier 1 Capital (to Assets)     8.82 %     8.64 %     8.29 %     9.16 %     9.16 %
                                   
    Pathfinder Bank Capital Ratios:                              
    Bank Total Core Capital (to Risk-Weighted Assets)     14.86 %     14.65 %     14.52 %     16.04 %     15.65 %
    Bank Tier 1 Capital (to Risk-Weighted Assets)     13.61 %     13.40 %     13.26 %     14.79 %     14.39 %
    Bank Tier 1 Common Equity (to Risk-Weighted Assets)     13.61 %     13.40 %     13.26 %     14.79 %     14.39 %
    Bank Tier 1 Capital (to Assets)     9.80 %     9.64 %     9.13 %     10.30 %     10.13 %
     

    1 Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
    2 Non-brokered deposits excluding certificates of deposit of $250,000 or more.
    3 Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.
    4 Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.
    5 Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

          2025     2024
    ASSET QUALITY:   Q1     Q4     Q3     Q2     Q1  
    Total loan charge-offs   $ 508     $ 1,191     $ 8,812     $ 112     $ 68  
    Total recoveries     168       171       90       46       38  
    Net loan charge-offs     340       1,020       8,722       66       30  
    Allowance for credit losses at period end     17,407       17,243       17,274       16,892       16,655  
    Nonperforming loans at period end     13,232       22,084       16,170       24,490       19,652  
    Nonperforming assets at period end   $ 13,232     $ 22,084     $ 16,170     $ 24,550     $ 19,734  
    Annualized net loan charge-offs to average loans     0.15 %     0.44 %     3.82 %     0.03 %     0.01 %
    Allowance for credit losses to period end loans     1.91 %     1.88 %     1.87 %     1.90 %     1.87 %
    Allowance for credit losses to nonperforming loans     131.55 %     78.08 %     106.83 %     68.98 %     84.75 %
    Nonperforming loans to period end loans     1.45 %     2.40 %     1.75 %     2.76 %     2.20 %
    Nonperforming assets to period end assets     0.88 %     1.50 %     1.09 %     1.70 %     1.36 %
     
        2025
    		   2024
    LOAN COMPOSITION:   March 31,     December 31,     September 30,     June 30,     March 31,  
    1-4 family first-lien residential mortgages   $ 243,854     $ 251,373     $ 255,235     $ 250,106     $ 252,026  
    Residential construction     3,162       4,864       4,077       309       1,689  
    Commercial real estate     381,479       377,619       378,805       370,361       363,467  
    Commercial lines of credit     65,074       67,602       64,672       62,711       67,416  
    Other commercial and industrial     91,644       89,800       88,247       90,813       91,178  
    Paycheck protection program loans     96       113       125       136       147  
    Tax exempt commercial loans     4,446       4,544       2,658       3,228       3,374  
    Home equity and junior liens     52,315       51,948       52,709       35,821       35,723  
    Other consumer     71,681       72,710       76,703       75,195       77,106  
    Subtotal loans     913,751       920,573       923,231       888,680       892,126  
    Deferred loan fees     (1,601 )     (1,587 )     (1,571 )     (417 )     (595 )
    Total loans   $ 912,150     $ 918,986     $ 921,660     $ 888,263     $ 891,531  
     
        2025
    		   2024
    DEPOSIT COMPOSITION:   March 31,     December 31,     September 30,     June 30,     March 31,  
    Savings accounts   $ 129,898     $ 128,753     $ 129,053     $ 106,048     $ 111,465  
    Time accounts     349,673       360,716       352,729       368,262       378,103  
    Time accounts in excess of $250,000     149,922       142,473       140,181       117,021       114,514  
    Money management accounts     10,774       11,583       11,520       12,154       11,676  
    MMDA accounts     306,281       239,016       250,007       193,915       215,101  
    Demand deposit interest-bearing     109,941       101,080       97,344       128,168       134,196  
    Demand deposit noninterest-bearing     203,314       213,719       210,110       169,145       176,434  
    Mortgage escrow funds     4,677       7,184       5,269       6,564       4,624  
    Total deposits   $ 1,264,480     $ 1,204,524     $ 1,196,213     $ 1,101,277     $ 1,146,113  
     

    The above information is unaudited and preliminary, based on the Company’s data available at the time of presentation.

          2025     2024
    SELECTED AVERAGE BALANCES:   Q1     Q4     Q1  
    Interest-earning assets:                  
    Loans   $ 916,207     $ 920,855     $ 895,335  
    Taxable investment securities     416,558       412,048       431,114  
    Tax-exempt investment securities     34,475       34,918       29,171  
    Fed funds sold and interest-earning deposits     12,939       5,115       13,873  
    Total interest-earning assets     1,380,179       1,372,936       1,369,493  
    Noninterest-earning assets:                  
    Other assets     114,882       112,654       94,677  
    Allowance for credit losses     (17,413 )     (17,145 )     (16,081 )
    Net unrealized losses on available-for-sale securities     (9,947 )     (8,534 )     (11,187 )
    Total assets   $ 1,467,701     $ 1,459,911     $ 1,436,902  
    Interest-bearing liabilities:                  
    NOW accounts   $ 111,643     $ 102,862     $ 99,688  
    Money management accounts     10,906       11,371       11,653  
    MMDA accounts     256,186       257,429       213,897  
    Savings and club accounts     129,769       128,169       112,719  
    Time deposits     498,963       504,009       524,368  
    Subordinated loans     30,123       30,076       29,930  
    Borrowings     70,575       68,391       137,882  
    Total interest-bearing liabilities     1,108,165       1,102,307       1,130,137  
    Noninterest-bearing liabilities:                  
    Demand deposits     206,137       206,521       169,748  
    Other liabilities     29,961       29,494       15,986  
    Total liabilities     1,344,263       1,338,322       1,315,871  
    Shareholders’ equity     123,438       121,589       121,031  
    Total liabilities & shareholders’ equity   $ 1,467,701     $ 1,459,911     $ 1,436,902  
     
          2025     2024
    SELECTED AVERAGE YIELDS:   Q1     Q4     Q1  
    Interest-earning assets:                  
    Loans     5.97 %     5.87 %     5.48 %
    Taxable investment securities     5.07 %     5.32 %     5.32 %
    Tax-exempt investment securities     4.66 %     5.10 %     6.97 %
    Fed funds sold and interest-earning deposits     2.75 %     6.41 %     2.83 %
    Total interest-earning assets     5.63 %     5.69 %     5.44 %
    Interest-bearing liabilities:                  
    NOW accounts     1.07 %     1.19 %     1.06 %
    Money management accounts     0.11 %     0.11 %     0.10 %
    MMDA accounts     3.06 %     3.23 %     3.61 %
    Savings and club accounts     0.25 %     0.26 %     0.26 %
    Time deposits     3.69 %     4.25 %     3.92 %
    Subordinated loans     6.31 %     6.52 %     6.56 %
    Borrowings     3.46 %     4.89 %     3.79 %
    Total interest-bearing liabilities     2.90 %     3.32 %     3.26 %
    Net interest rate spread     2.73 %     2.37 %     2.18 %
    Net interest margin     3.31 %     3.02 %     2.75 %
    Ratio of average interest-earning assets to average interest-bearing liabilities     124.55 %     124.55 %     121.18 %
     

    The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

          2025     2024
    NON-GAAP RECONCILIATIONS:   Q1     Q4     Q3     Q2     Q1  
    Tangible book value per common share:                              
    Total equity   $ 124,896     $ 121,483     $ 120,246     $ 123,348     $ 121,818  
    Intangible assets     (10,888 )     (11,045 )     (11,969 )     (4,612 )     (4,616 )
    Tangible common equity (non-GAAP)     114,008       110,438       108,277       118,736       117,202  
    Common shares outstanding     6,144       6,126       6,100       6,100       6,100  
    Tangible book value per common share (non-GAAP)   $ 18.56     $ 18.03     $ 17.75     $ 19.46     $ 19.21  
    Tangible common equity to tangible assets:                              
    Tangible common equity (non-GAAP)   $ 114,008     $ 110,438     $ 108,277     $ 118,736     $ 117,202  
    Tangible assets     1,484,449       1,463,829       1,471,157       1,441,599       1,449,056  
    Tangible common equity to tangible assets ratio (non-GAAP)     7.68 %     7.54 %     7.36 %     8.24 %     8.09 %
    Return on average tangible common equity:                              
    Average shareholders’ equity   $ 123,438     $ 121,589     $ 125,626     $ 123,211     $ 121,031  
    Average intangible assets     10,991       11,907       4,691       4,614       4,619  
    Average tangible equity (non-GAAP)     112,447       109,682       120,935       118,597       116,412  
    Net income (loss)     2,974       3,907       (4,644 )     2,000       2,120  
    Net income (loss), annualized   $ 11,831     $ 15,543     $ (18,475 )   $ 8,044     $ 8,527  
    Return on average tangible common equity (non-GAAP)1     10.52 %     14.17 %     -15.28 %     6.78 %     7.32 %
    Revenue, pre-tax, pre-provision net income, and efficiency ratio:                              
    Net interest income   $ 11,411     $ 10,377     $ 11,732     $ 9,480     $ 9,400  
    Total noninterest income     1,197       4,906       1,707       1,211       1,737  
    Net realized (gains) losses on sales and redemptions of investment securities     (8 )     249       (188 )     16       (148 )
    Gain on asset sale     –       3,169       –       –       –  
    Revenue (non-GAAP)2     12,616       11,865       13,627       10,675       11,285  
    Total non-interest expense     8,433       8,544       10,259       7,908       7,706  
    Pre-tax, pre-provision net income (non-GAAP)3   $ 4,183     $ 3,321     $ 3,368     $ 2,767     $ 3,579  
    Efficiency ratio (non-GAAP)4     66.84 %     72.01 %     75.28 %     74.08 %     68.29 %
     

    1 Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity
    2 Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency
    3 Pre-tax, pre-provision net income equals revenue less total non-interest expense
    4 Efficiency ratio equals noninterest expense divided by revenue

    The above information is unaudited and preliminary based on the Company’s data available at the time of presentation.

    The MIL Network –

  • MIL-OSI: Red River Bancshares, Inc. Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ALEXANDRIA, La., April 30, 2025 (GLOBE NEWSWIRE) — Red River Bancshares, Inc. (the “Company”) (Nasdaq: RRBI), the holding company for Red River Bank (the “Bank”), announced today its unaudited financial results for the first quarter of 2025.

    Net income for the first quarter of 2025 was $10.4 million, or $1.52 per diluted common share (“EPS”), an increase of $1.0 million, or 11.2%, compared to $9.3 million, or $1.37 EPS, for the fourth quarter of 2024, and an increase of $2.2 million, or 26.4%, compared to $8.2 million, or $1.16 EPS, for the first quarter of 2024. For the first quarter of 2025, the quarterly return on assets was 1.32%, and the quarterly return on equity was 12.85%.

    First Quarter 2025 Performance and Operational Highlights

    The Company had solid financial results for the first quarter of 2025. The net interest margin, net interest income, and net income increased. The balance sheet reflects good loan growth, while deposits and assets had slight increases. We increased the quarterly cash dividend paid to shareholders by 33.3% to $0.12 per share for the first quarter of 2025. Also, in the first quarter, we completed significant upgrades to our digital banking systems.

    • Net income for the first quarter of 2025 was $10.4 million, which was $1.0 million, or 11.2%, higher than the prior quarter. Net income for the first quarter increased due to having higher net interest income, along with approximately $620,000 of periodic items that reduced operating expenses. These operating expense reductions benefited EPS by approximately $0.07.
    • Net interest income and net interest margin FTE increased for the first quarter of 2025 compared to the prior quarter. Net interest income for the first quarter of 2025 was $24.6 million, which was $923,000, or 3.9%, higher than the prior quarter. Net interest margin FTE increased 13 basis points (“bp(s)”) to 3.22% for the first quarter of 2025, compared to 3.09% for the prior quarter. These improvements resulted from higher securities yields and lower deposit rates.
    • As of March 31, 2025, assets were $3.19 billion, which was $36.8 million, or 1.2%, higher than December 31, 2024. The increase was mainly due to a $20.6 million increase in deposits.
    • Deposits totaled $2.83 billion as of March 31, 2025, an increase of $20.6 million, or 0.7%, compared to $2.81 billion as of December 31, 2024. This increase was mainly due to higher balances in consumer and commercial customer deposit accounts, partially offset by the seasonal outflow of funds from public entity customers.
    • As of March 31, 2025, loans held for investment (“HFI”) were $2.11 billion, which was $39.7 million, or 1.9%, higher than $2.08 billion as of December 31, 2024. In the first quarter of 2025, we had steady new loan closing activity, combined with funding of loan construction commitments.
    • As of March 31, 2025, total securities were $699.5 million, which was $14.7 million, or 2.1%, higher than December 31, 2024. Securities increased mainly due to the purchase of new securities, combined with a smaller net unrealized loss on securities available-for-sale (“AFS”).
    • As of March 31, 2025, liquid assets, which are cash and cash equivalents, were $252.2 million, and the liquid assets to assets ratio was 7.91%. We do not have any borrowings, brokered deposits, or internet-sourced deposits.
    • The provision for credit losses was $450,000 for the first quarter of 2025, compared to $300,000 for the prior quarter. The $150,000 increase was due to loan growth and uncertainty regarding tariffs and trade.
    • As of March 31, 2025, nonperforming assets (“NPA(s)”) were $5.2 million, or 0.16% of assets, and the allowance for credit losses (“ACL”) was $21.8 million, or 1.03% of loans HFI.
    • In the first quarter of 2025, the quarterly cash dividend increased by 33.3% to $0.12 per common share, up from $0.09 per common share for each quarter in 2024.
    • The 2025 stock repurchase program authorizes us to purchase up to $5.0 million of our outstanding shares of common stock from January 1, 2025 through December 31, 2025. As of March 31, 2025, the 2025 stock repurchase program had $5.0 million of available capacity.
    • In the first quarter of 2025, Red River Bank’s online, mobile banking, and bill payment systems were upgraded in order to improve our digital services for all customers.
    • In the first quarter of 2025, S&P Global Market Intelligence ranked the Bank 14th of the top 50 best deposit franchises in 2024 for banks with assets between $3.0 and $10.0 billion.
    • On March 14, 2025, our board of directors and executive management had the privilege of ringing the closing bell at the Nasdaq Market Site in New York to commemorate being a public company for 6 years.

    Blake Chatelain, President and Chief Executive Officer, stated, “We are pleased with the financial results for the first quarter of 2025. We produced solid net interest margin improvement, higher net income, and positive, relationship-based core loan growth. As a result of consistent earnings, strong capital levels, and confidence in our consistent and conservative banking culture, the board of directors approved a 33.3% increase to the quarterly cash dividend for the first quarter of 2025 to $0.12 per share.

    “We continue to be very focused on net interest margin improvement and managing our cost of deposits, while also focusing on redeploying assets into higher yielding assets. In the first quarter of 2025, our net interest margin FTE increased by 13 bps, net interest income increased by 3.9%, and net income increased by 11.2%.

    “We remain pleased with the level of our customer banking activity across Louisiana. We are focused on adding experienced relationship bankers and growing our presence in our newer markets. Recently there has been expanded emphasis and renewed efforts on economic development in Louisiana. This has resulted in various new and significant corporate expansion announcements for new projects throughout the state. Overall, as of March 31, 2025, our customers seem optimistic about economic activity and growth.

    “Despite this optimism, as result of the April 2, 2025 announcements and changes to the United States tariff policy, we are assessing the possible impact to our customers and the Company. These changes have injected new uncertainty into the economic environment and could result in a slowdown in activity, higher inflation, and a loss of consumer confidence. We are monitoring this situation with our customers as these events unfold. We are hopeful that these policies will be settled quickly and with minimal, negative impact.

    “Since the Company was founded in 1998, we have focused on having a consistent, conservative, and prudent banking philosophy and strategy. We remain focused on these principles, while also striving daily to build customer relationships, expand market share, and create value for our shareholders.”

    Net Interest Income and Net Interest Margin FTE

    Net interest income and net interest margin FTE increased in the first quarter of 2025 compared to the prior quarter. These measures were both primarily impacted by improved yields on securities and lower deposit rates. The Federal Open Market Committee (“FOMC”) decreased the federal funds rate by 50 bps in September of 2024, and by an additional 50 bps during the fourth quarter of 2024, and then kept the federal funds rate consistent in the first quarter of 2025.

    Net interest income for the first quarter of 2025 was $24.6 million, which was $923,000, or 3.9%, higher than the fourth quarter of 2024, due to a $178,000 increase in interest and dividend income, combined with a $745,000 decrease in interest expense. The increase in interest and dividend income was mainly due to higher interest income on securities. Securities income increased $233,000, primarily due to reinvesting lower yielding securities cash flows into higher yielding securities. The decrease in interest expense was primarily due to lower rates on time deposits.

    The net interest margin FTE increased 13 bps to 3.22% for the first quarter of 2025, compared to 3.09% for the prior quarter. This increase was due to improved yields on securities and loans, combined with lower deposit costs. The yield on securities increased 11 bps, primarily due to reinvesting lower yielding securities cash flows into higher yielding securities. The yield on loans increased 7 bps due to higher rates on new and renewed loans compared to the existing portfolio yield. The average rate on new and renewed loans was 7.02% for the first quarter of 2025 and 7.25% for the prior quarter. The cost of deposits decreased 10 bps to 1.61% for the first quarter of 2025, compared to 1.71% for the previous quarter, mainly due to lowering selected time deposit rates. As a result of this change, there was a 37 bp decrease on time deposits during the first quarter.

    The FOMC kept the federal funds rate consistent in the first quarter of 2025, with the target federal funds range remaining at 4.25%-4.50%. The market’s expectation is that the FOMC may lower the target range of the federal funds rate several times in 2025. During the remainder of 2025, we anticipate receiving approximately $80.0 million in securities cash flows with an average yield of 3.28%, and we project approximately $162.2 million of fixed rate loans will mature with an average yield of 6.15%. We expect to redeploy these balances into slightly higher yielding assets. Additionally, during the second quarter of 2025, we expect $253.6 million of time deposits to mature with an average rate of 4.06%, which we anticipate repricing into slightly lower cost deposits. As of March 31, 2025, floating rate loans were 17.6% of loans HFI, and floating rate transaction deposits were 8.7% of interest-bearing transaction deposits. Depending on balance sheet activity, the movement in interest rates, and the economic outlook, we expect the net interest income and net interest margin FTE to remain fairly consistent for the remainder of 2025.

    Provision for Credit Losses

    The provision for credit losses for the first quarter of 2025 was $450,000 for loans, which was $150,000 higher than the provision for credit losses of $300,000 for the prior quarter. The increase in the first quarter of 2025 was related to loan growth in the quarter, combined with uncertainty regarding tariffs and trade. The provision in the fourth quarter of 2024, which included $200,000 for loans and $100,000 for unfunded loans commitments, was due to potential economic challenges resulting from the recent inflationary environment, changing monetary policy, and loan growth. We will continue to evaluate future provision needs in relation to current economic situations, loan growth, trends in asset quality, forecasted information, and other conditions influencing loss expectations.

    Noninterest Income

    Noninterest income totaled $5.3 million for the first quarter of 2025, an increase of $277,000, or 5.5%, compared to $5.0 million for the previous quarter. The increase was mainly due to higher brokerage income and a gain on equity securities, partially offset by lower mortgage loan income and Small Business Investment Company (“SBIC”) income.

    Brokerage income was $1.3 million for the first quarter of 2025, an increase of $401,000, or 43.4%, compared to $924,000 for the previous quarter. The higher income in the first quarter of 2025 was due to increased investing activity by clients. Assets under management were $1.14 billion as of March 31, 2025.

    Equity securities are an investment in a Community Reinvestment Act (“CRA”) mutual fund consisting primarily of bonds. The gain or loss on equity securities is a fair value adjustment primarily driven by changes in the interest rate environment. Due to the fluctuations in market rates between quarters, equity securities had a gain of $44,000 in the first quarter of 2025, compared to a loss of $91,000 for the previous quarter.

    Mortgage loan income totaled $530,000 for the first quarter of 2025, a decrease of $122,000, or 18.7%, compared to $652,000 for the previous quarter due to decreased purchase activity.

    SBIC income was $280,000 for the first quarter of 2025, a decrease of $66,000, or 19.1%, compared to $346,000 for the previous quarter. This decrease was primarily due to lower normal income received from these partnerships. We expect SBIC income to be lower in future quarters due to fund value fluctuations.

    Operating Expenses

    Operating expenses totaled $16.6 million for the first quarter of 2025, a decrease of $252,000, or 1.5%, compared to $16.8 million for the previous quarter. The decrease was mainly due to lower data processing expense and loan and deposit expense, partially offset by higher personnel expense.

    Data processing expense totaled $288,000 for the first quarter of 2025, a decrease of $393,000, or 57.7%, compared to $681,000 for the previous quarter. The decrease was attributable to receipt of a $447,000 periodic refund from our data processing center in the first quarter of 2025. This decrease was partially offset by new expenses and $14,000 of nonrecurring implementation fees related to online, mobile banking, and bill payment systems implemented in the first quarter of 2025.

    Loan and deposit expenses totaled $62,000 for the first quarter of 2025, a decrease of $272,000, or 81.4%, compared to $334,000 for the previous quarter. This decrease was primarily attributable to receipt of a $173,000 negotiated, variable rebate from a vendor in the first quarter of 2025.

    Personnel expenses totaled $10.0 million for the first quarter of 2025, an increase of $254,000, or 2.6%, compared to the previous quarter. This increase was primarily due to an increase in head count, restarting of payroll tax expense, and increased revenue-based commission compensation. As of March 31, 2025 and December 31, 2024, we had 375 and 369 total employees, respectively.

    Asset Overview

    As of March 31, 2025, assets were $3.19 billion, compared to assets of $3.15 billion as of December 31, 2024, an increase of $36.8 million, or 1.2%. In the first quarter, assets were mainly impacted by a $20.6 million, or 0.7%, increase in deposits. In the first quarter of 2024, liquid assets decreased $16.8 million, or 6.3%, to $252.2 million and averaged $275.9 million for the first quarter. As of March 31, 2025, we had sufficient liquid assets available and $1.66 billion accessible from other liquidity sources. The liquid assets to assets ratio was 7.91% as of March 31, 2025. Total securities increased $14.7 million, or 2.1%, to $699.5 million in the first quarter and were 22.0% of assets as of March 31, 2025. During the first quarter, loans HFI increased $39.7 million, or 1.9%, to $2.11 billion. The loans HFI to deposits ratio was 74.84% as of March 31, 2025, compared to 73.97% as of December 31, 2024.

    Securities

    Total securities as of March 31, 2025, were $699.5 million, an increase of $14.7 million, or 2.1%, from December 31, 2024. Securities increased mainly due to the purchase of new securities, combined with a smaller net unrealized loss on securities AFS.

    The estimated fair value of securities AFS totaled $566.9 million, net of $58.7 million of unrealized loss, as of March 31, 2025, compared to $550.1 million, net of $63.2 million of unrealized loss, as of December 31, 2024. As of March 31, 2025, the amortized cost of securities held-to-maturity (“HTM”) totaled $129.7 million compared to $131.8 million as of December 31, 2024. As of March 31, 2025, securities HTM had an unrealized loss of $21.8 million compared to $22.8 million as of December 31, 2024.

    As of March 31, 2025, equity securities, which is an investment in a CRA mutual fund consisting primarily of bonds, totaled $3.0 million compared to $2.9 million as of December 31, 2024.

    Loans

    Loans HFI as of March 31, 2025, were $2.11 billion, an increase of $39.7 million, or 1.9%, from $2.08 billion as of December 31, 2024. In the first quarter of 2025, we had steady new loan closing activity, combined with funding of loan construction commitments.

    Loans HFI by Category
      March 31, 2025   December 31, 2024   Change from
    December 31, 2024 to
    March 31, 2025
    (dollars in thousands) Amount   Percent   Amount   Percent   $ Change   % Change
    Real estate:                      
    Commercial real estate $ 892,205   42.2 %   $ 884,641   42.6 %   $ 7,564     0.9 %
    One-to-four family residential   617,679   29.2 %     614,551   29.6 %     3,128     0.5 %
    Construction and development   175,575   8.3 %     155,229   7.5 %     20,346     13.1 %
    Commercial and industrial   339,115   16.0 %     327,086   15.8 %     12,029     3.7 %
    Tax-exempt   61,722   2.9 %     64,930   3.1 %     (3,208 )   (4.9 %)
    Consumer   28,446   1.4 %     28,576   1.4 %     (130 )   (0.5 %)
    Total loans HFI $ 2,114,742   100.0 %   $ 2,075,013   100.0 %   $ 39,729     1.9 %

    Commercial real estate (“CRE”) loans are collateralized by owner occupied and non-owner occupied properties mainly in Louisiana. Non-owner occupied office loans were $54.2 million, or 2.6% of loans HFI, as of March 31, 2025, and are primarily centered in low-rise suburban areas. The average CRE loan size was $970,000 as of March 31, 2025.

    Health care loans are our largest industry concentration and are made up of a diversified portfolio of health care providers. As of March 31, 2025, total health care loans were 8.0% of loans HFI. Within the health care sector, loans to nursing and residential care facilities were 4.2% of loans HFI, and loans to physician and dental practices were 3.4% of loans HFI. The average health care loan size was $370,000 as of March 31, 2025.

    Asset Quality and Allowance for Credit Losses

    NPAs totaled $5.2 million as of March 31, 2025, an increase of $1.9 million, or 58.6%, from December 31, 2024. The increase was primarily due to a past due loan, partially offset by payoffs and charge-offs of nonaccrual loans. As of early April 2025, the past due loan was brought current by the customer, and NPAs were further reduced by receiving principal payments on two legacy nonaccrual loans. The ratio of NPAs to assets was 0.16% and 0.10% as of March 31, 2025 and December 31, 2024, respectively.

    As of March 31, 2025, the ACL was $21.8 million. The ratio of ACL to loans HFI was 1.03% as of March 31, 2025 and 1.05% as of December 31, 2024. The net charge-offs to average loans ratio was 0.02% for the first quarter of 2025 and 0.01% for the fourth quarter of 2024.

    Deposits

    As of March 31, 2025, deposits were $2.83 billion, an increase of $20.6 million, or 0.7%, compared to December 31, 2024. Average deposits for the first quarter of 2025 were $2.82 billion, an increase of $36.2 million, or 1.3%, from the prior quarter. The following tables provide details on our deposit portfolio:

    Deposits by Account Type
      March 31, 2025   December 31, 2024   Change from
    December 31, 2024 to
    March 31, 2025
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Noninterest-bearing demand deposits $ 906,540   32.1 %   $ 866,496   30.9 %   $ 40,044     4.6 %
    Interest-bearing deposits:                      
    Interest-bearing demand deposits   147,343   5.2 %     154,720   5.5 %     (7,377 )   (4.8 %)
    NOW accounts   432,054   15.3 %     467,118   16.7 %     (35,064 )   (7.5 %)
    Money market accounts   569,613   20.2 %     556,769   19.8 %     12,844     2.3 %
    Savings accounts   175,239   6.2 %     169,894   6.1 %     5,345     3.1 %
    Time deposits less than or equal to $250,000   403,354   14.2 %     403,096   14.3 %     258     0.1 %
    Time deposits greater than $250,000   191,533   6.8 %     187,013   6.7 %     4,520     2.4 %
    Total interest-bearing deposits   1,919,136   67.9 %     1,938,610   69.1 %     (19,474 )   (1.0 %)
    Total deposits $ 2,825,676   100.0 %   $ 2,805,106   100.0 %   $ 20,570     0.7 %
    Deposits by Customer Type
      March 31, 2025   December 31, 2024   Change from
    December 31, 2024 to
    March 31, 2025
    (dollars in thousands) Balance   % of Total   Balance   % of Total   $ Change   % Change
    Consumer $ 1,388,944   49.1 %   $ 1,362,740   48.6 %   $ 26,204     1.9 %
    Commercial   1,200,367   42.5 %     1,178,488   42.0 %     21,879     1.9 %
    Public   236,365   8.4 %     263,878   9.4 %     (27,513 )   (10.4 %)
    Total deposits $ 2,825,676   100.0 %   $ 2,805,106   100.0 %   $ 20,570     0.7 %

    The increase in deposits in the first quarter of 2025 was mainly due to higher balances in consumer and commercial customer deposit accounts, partially offset by the seasonal outflow of funds from public entity customers.

    The Bank has a granular, diverse deposit portfolio with customers in a variety of industries throughout Louisiana. As of March 31, 2025, the average deposit account size was approximately $28,000.

    As of March 31, 2025, our estimated uninsured deposits, which are the portion of deposit accounts that exceed the FDIC insurance limit (currently $250,000), were approximately $875.2 million, or 31.0% of total deposits. This amount was estimated based on the same methodologies and assumptions used for regulatory reporting purposes. Also, as of March 31, 2025, our estimated uninsured deposits, excluding collateralized public entity deposits, were approximately $689.6 million, or 24.4% of total deposits. Our cash and cash equivalents of $252.2 million, combined with our available borrowing capacity of $1.66 billion, equaled 218.4% of our estimated uninsured deposits and 277.1% of our estimated uninsured deposits, excluding collateralized public entity deposits.

    Stockholders’ Equity

    Total stockholders’ equity as of March 31, 2025, was $333.3 million compared to $319.7 million as of December 31, 2024. The $13.6 million, or 4.2%, increase in stockholders’ equity during the first quarter of 2025 was attributable to $10.4 million of net income, a $3.9 million, net of tax, market adjustment to accumulated other comprehensive loss related to securities, and $149,000 of stock compensation, partially offset by $813,000 in cash dividends related to a $0.12 per share cash dividend that we paid on March 20, 2025.

    Non-GAAP Disclosure

    Our accounting and reporting policies conform to United States generally accepted accounting principles (“GAAP”) and the prevailing practices in the banking industry. Certain financial measures used by management to evaluate our operating performance are discussed as supplemental non-GAAP performance measures. In accordance with the Securities and Exchange Commission’s (“SEC”) rules, we classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the U.S.

    Management and the board of directors review tangible book value per share, tangible common equity to tangible assets, and realized book value per share as part of managing operating performance. However, these non-GAAP financial measures should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner we calculate the non-GAAP financial measures that are discussed may differ from that of other companies’ reporting measures with similar names. It is important to understand how such other banking organizations calculate and name their financial measures similar to the non-GAAP financial measures discussed by us when comparing such non-GAAP financial measures.

    A reconciliation of non-GAAP financial measures to the comparable GAAP financial measures is included within the following financial statement tables.

    About Red River Bancshares, Inc.

    Red River Bancshares, Inc. is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.

    Forward-Looking Statements

    Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business, interest rates, and markets, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in the section titled “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q, and in other documents that we file with the SEC from time to time. In addition, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. All forward-looking statements, express or implied, included in this news release are qualified in their entirety by this cautionary statement.

    Contact:
    Isabel V. Carriere, CPA, CGMA
    Executive Vice President, Chief Financial Officer, and Assistant Corporate Secretary
    318-561-4023
    icarriere@redriverbank.net

    FINANCIAL HIGHLIGHTS (UNAUDITED)
     
        As of and for the
    Three Months Ended
    (dollars in thousands, except per share data)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Net Income   $ 10,352     $ 9,306     $ 8,188  
                 
    Per Common Share Data:            
    Earnings per share, basic   $ 1.53     $ 1.37     $ 1.16  
    Earnings per share, diluted   $ 1.52     $ 1.37     $ 1.16  
    Book value per share   $ 49.18     $ 47.18     $ 43.43  
    Tangible book value per share (1)   $ 48.95     $ 46.95     $ 43.20  
    Realized book value per share (1)   $ 57.49     $ 56.07     $ 52.52  
    Cash dividends per share   $ 0.12     $ 0.09     $ 0.09  
    Shares outstanding     6,777,657       6,777,238       6,892,448  
    Weighted average shares outstanding, basic     6,777,332       6,797,469       7,050,048  
    Weighted average shares outstanding, diluted     6,796,707       6,816,299       7,066,709  
                 
    Summary Performance Ratios:            
    Return on average assets     1.32 %     1.18 %     1.07 %
    Return on average equity     12.85 %     11.46 %     10.77 %
    Net interest margin     3.17 %     3.04 %     2.80 %
    Net interest margin FTE     3.22 %     3.09 %     2.83 %
    Efficiency ratio     55.51 %     58.71 %     60.37 %
    Loans HFI to deposits ratio     74.84 %     73.97 %     74.22 %
    Noninterest-bearing deposits to deposits ratio     32.08 %     30.89 %     32.61 %
    Noninterest income to average assets     0.67 %     0.63 %     0.64 %
    Operating expense to average assets     2.12 %     2.14 %     2.07 %
                 
    Summary Credit Quality Ratios:            
    NPAs to assets     0.16 %     0.10 %     0.08 %
    Nonperforming loans to loans HFI     0.24 %     0.16 %     0.12 %
    ACL to loans HFI     1.03 %     1.05 %     1.06 %
    Net charge-offs to average loans     0.02 %     0.01 %     0.00 %
                 
    Capital Ratios:            
    Stockholders’ equity to assets     10.46 %     10.15 %     9.74 %
    Tangible common equity to tangible assets(1)     10.42 %     10.11 %     9.69 %
    Total risk-based capital to risk-weighted assets     18.25 %     18.13 %     17.84 %
    Tier I risk-based capital to risk-weighted assets     17.25 %     17.12 %     16.82 %
    Common equity Tier I capital to risk-weighted assets     17.25 %     17.12 %     16.82 %
    Tier I risk-based capital to average assets     12.01 %     11.86 %     11.44 %

    (1) Non-GAAP financial measure. Calculations of this measure and reconciliations to GAAP are included in the schedules accompanying this release.

    RED RIVER BANCSHARES, INC.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
     
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    ASSETS                  
    Cash and due from banks $ 36,438     $ 30,558     $ 39,664     $ 35,035     $ 19,401  
    Interest-bearing deposits in other banks   215,717       238,417       192,983       178,038       210,404  
    Securities available-for-sale, at fair value   566,874       550,148       560,555       526,890       545,967  
    Securities held-to-maturity, at amortized cost   129,686       131,796       134,145       136,824       139,328  
    Equity securities, at fair value   2,981       2,937       3,028       2,921       2,934  
    Nonmarketable equity securities   2,349       2,328       2,305       2,283       2,261  
    Loans held for sale   2,178       2,547       1,805       3,878       1,653  
    Loans held for investment   2,114,742       2,075,013       2,056,048       2,047,890       2,038,072  
    Allowance for credit losses   (21,835 )     (21,731 )     (21,757 )     (21,627 )     (21,564 )
    Premises and equipment, net   59,034       59,441       57,661       57,910       57,539  
    Accrued interest receivable   10,553       10,048       9,465       9,570       9,995  
    Bank-owned life insurance   30,593       30,380       30,164       29,947       29,731  
    Intangible assets   1,546       1,546       1,546       1,546       1,546  
    Right-of-use assets   2,611       2,733       2,853       2,973       3,091  
    Other assets   32,965       33,433       31,285       34,450       32,940  
    Total Assets $ 3,186,432     $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298  
    LIABILITIES                  
    Noninterest-bearing deposits $ 906,540     $ 866,496     $ 882,394     $ 892,942     $ 895,439  
    Interest-bearing deposits   1,919,136       1,938,610       1,864,731       1,823,704       1,850,452  
    Total Deposits   2,825,676       2,805,106       2,747,125       2,716,646       2,745,891  
    Accrued interest payable   6,463       7,583       11,751       8,747       8,959  
    Lease liabilities   2,739       2,864       2,982       3,100       3,215  
    Accrued expenses and other liabilities   18,238       14,302       15,574       13,045       15,919  
    Total Liabilities   2,853,116       2,829,855       2,777,432       2,741,538       2,773,984  
    COMMITMENTS AND CONTINGENCIES   —       —       —       —       —  
    STOCKHOLDERS’ EQUITY                  
    Preferred stock, no par value   —       —       —       —       —  
    Common stock, no par value   38,710       38,655       41,402       44,413       45,177  
    Additional paid-in capital   2,871       2,777       2,682       2,590       2,485  
    Retained earnings   348,093       338,554       329,858       321,719       314,352  
    Accumulated other comprehensive income (loss)   (56,358 )     (60,247 )     (49,624 )     (61,732 )     (62,700 )
    Total Stockholders’ Equity   333,316       319,739       324,318       306,990       299,314  
    Total Liabilities and Stockholders’ Equity $ 3,186,432     $ 3,149,594     $ 3,101,750     $ 3,048,528     $ 3,073,298  
    RED RIVER BANCSHARES, INC.  
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  
                   
        For the Three Months Ended  
    (in thousands)   March 31,
    2025
    		   December 31,
    2024
    		   March 31,
    2024
    		  
                           
    INTEREST AND DIVIDEND INCOME              
    Interest and fees on loans   $ 28,270   $ 28,285     $ 25,893    
    Interest on securities     4,856     4,623       4,064    
    Interest on deposits in other banks     2,661     2,699       3,039    
    Dividends on stock     21     23       22    
    Total Interest and Dividend Income     35,808     35,630       33,018    
    INTEREST EXPENSE              
    Interest on deposits     11,198     11,943       11,655    
    Interest on other borrowed funds     —     —       —    
    Total Interest Expense     11,198     11,943       11,655    
    Net Interest Income     24,610     23,687       21,363    
    Provision for credit losses     450     300       300    
    Net Interest Income After Provision for Credit Losses     24,160     23,387       21,063    
    NONINTEREST INCOME              
    Service charges on deposit accounts     1,383     1,452       1,368    
    Debit card income, net     992     960       1,022    
    Mortgage loan income     530     652       456    
    Brokerage income     1,325     924       987    
    Loan and deposit income     459     463       492    
    Bank-owned life insurance income     213     216       202    
    Gain (Loss) on equity securities     44     (91 )     (31 )  
    SBIC income     280     346       352    
    Other income (loss)     46     73       80    
    Total Noninterest Income     5,272     4,995       4,928    
    OPERATING EXPENSES              
    Personnel expenses     10,023     9,769       9,550    
    Occupancy and equipment expenses     1,794     1,716       1,616    
    Technology expenses     835     884       709    
    Advertising     333     313       337    
    Other business development expenses     558     486       475    
    Data processing expense     288     681       347    
    Other taxes     612     547       737    
    Loan and deposit expenses     62     334       (42 )  
    Legal and professional expenses     632     658       618    
    Regulatory assessment expenses     391     428       404    
    Other operating expenses     1,060     1,024       1,122    
    Total Operating Expenses     16,588     16,840       15,873    
    Income Before Income Tax Expense     12,844     11,542       10,118    
    Income tax expense     2,492     2,236       1,930    
    Net Income   $ 10,352   $ 9,306     $ 8,188    
    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Three Months Ended
      March 31, 2025   December 31, 2024
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,089,712     $ 28,270   5.41 %   $ 2,072,858     $ 28,285   5.34 %
    Securities – taxable   559,752       3,871   2.77 %     555,622       3,636   2.62 %
    Securities – tax-exempt   189,729       985   2.08 %     190,470       987   2.07 %
    Interest-bearing deposits in other banks   243,751       2,661   4.37 %     225,660       2,699   4.74 %
    Nonmarketable equity securities   2,330       21   3.56 %     2,307       23   3.99 %
    Total interest-earning assets   3,085,274     $ 35,808   4.64 %     3,046,917     $ 35,630   4.60 %
    Allowance for credit losses   (21,789 )             (21,824 )        
    Noninterest-earning assets   107,295               109,992          
    Total assets $ 3,170,780             $ 3,135,085          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,341,885     $ 5,641   1.70 %   $ 1,263,775     $ 5,658   1.78 %
    Time deposits   592,368       5,557   3.80 %     599,910       6,285   4.17 %
    Total interest-bearing deposits   1,934,253       11,198   2.35 %     1,863,685       11,943   2.55 %
    Other borrowings   —       —   — %     —       —   — %
    Total interest-bearing liabilities   1,934,253     $ 11,198   2.35 %     1,863,685     $ 11,943   2.55 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   884,484               918,804          
    Accrued interest and other liabilities   25,336               29,567          
    Total noninterest-bearing liabilities   909,820               948,371          
    Stockholders’ equity   326,707               323,029          
    Total liabilities and stockholders’ equity $ 3,170,780             $ 3,135,085          
    Net interest income     $ 24,610           $ 23,687    
    Net interest spread         2.29 %           2.05 %
    Net interest margin         3.17 %           3.04 %
    Net interest margin FTE(3)         3.22 %           3.09 %
    Cost of deposits         1.61 %           1.71 %
    Cost of funds         1.47 %           1.56 %

    (1) Includes average outstanding balances of loans held for sale of $2.6 million and $3.2 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RED RIVER BANCSHARES, INC.
    NET INTEREST INCOME AND NET INTEREST MARGIN (UNAUDITED)
     
      For the Three Months Ended
      March 31, 2025   March 31, 2024
    (dollars in thousands) Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate    		   Average Balance Outstanding   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate
    Assets                      
    Interest-earning assets:                      
    Loans(1,2) $ 2,089,712     $ 28,270   5.41 %   $ 2,015,063     $ 25,893   5.09 %
    Securities – taxable   559,752       3,871   2.77 %     569,600       3,048   2.14 %
    Securities – tax-exempt   189,729       985   2.08 %     197,817       1,016   2.05 %
    Interest-bearing deposits in other banks   243,751       2,661   4.37 %     224,301       3,039   5.42 %
    Nonmarketable equity securities   2,330       21   3.56 %     2,240       22   3.95 %
    Total interest-earning assets   3,085,274     $ 35,808   4.64 %     3,009,021     $ 33,018   4.35 %
    Allowance for credit losses   (21,789 )             (21,402 )        
    Noninterest-earning assets   107,295               100,486          
    Total assets $ 3,170,780             $ 3,088,105          
    Liabilities and Stockholders’ Equity                      
    Interest-bearing liabilities:                      
    Interest-bearing transaction deposits $ 1,341,885     $ 5,641   1.70 %   $ 1,261,361     $ 5,680   1.81 %
    Time deposits   592,368       5,557   3.80 %     582,847       5,975   4.12 %
    Total interest-bearing deposits   1,934,253       11,198   2.35 %     1,844,208       11,655   2.54 %
    Other borrowings   —       —   — %     —       —   — %
    Total interest-bearing liabilities   1,934,253     $ 11,198   2.35 %     1,844,208     $ 11,655   2.54 %
    Noninterest-bearing liabilities:                      
    Noninterest-bearing deposits   884,484               913,114          
    Accrued interest and other liabilities   25,336               25,055          
    Total noninterest-bearing liabilities   909,820               938,169          
    Stockholders’ equity   326,707               305,728          
    Total liabilities and stockholders’ equity $ 3,170,780             $ 3,088,105          
    Net interest income     $ 24,610           $ 21,363    
    Net interest spread         2.29 %           1.81 %
    Net interest margin         3.17 %           2.80 %
    Net interest margin FTE(3)         3.22 %           2.83 %
    Cost of deposits         1.61 %           1.70 %
    Cost of funds         1.47 %           1.56 %

    (1) Includes average outstanding balances of loans held for sale of $2.6 million and $2.0 million for the three months ended March 31, 2025 and 2024, respectively.
    (2) Nonaccrual loans are included as loans carrying a zero yield.
    (3) Net interest margin FTE includes an FTE adjustment using a 21.0% federal income tax rate on tax-exempt securities and tax-exempt loans.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (UNAUDITED)
     
    (dollars in thousands, except per share data) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Tangible common equity          
    Total stockholders’ equity $ 333,316     $ 319,739     $ 299,314  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible common equity (non-GAAP) $ 331,770     $ 318,193     $ 297,768  
    Realized common equity          
    Total stockholders’ equity $ 333,316     $ 319,739     $ 299,314  
    Adjustments:          
    Accumulated other comprehensive (income) loss   56,358       60,247       62,700  
    Total realized common equity (non-GAAP) $ 389,674     $ 379,986     $ 362,014  
    Common shares outstanding   6,777,657       6,777,238       6,892,448  
    Book value per share $ 49.18     $ 47.18     $ 43.43  
    Tangible book value per share (non-GAAP) $ 48.95     $ 46.95     $ 43.20  
    Realized book value per share (non-GAAP) $ 57.49     $ 56.07     $ 52.52  
               
    Tangible assets          
    Total assets $ 3,186,432     $ 3,149,594     $ 3,073,298  
    Adjustments:          
    Intangible assets   (1,546 )     (1,546 )     (1,546 )
    Total tangible assets (non-GAAP) $ 3,184,886     $ 3,148,048     $ 3,071,752  
    Total stockholders’ equity to assets   10.46 %     10.15 %     9.74 %
    Tangible common equity to tangible assets (non-GAAP)   10.42 %     10.11 %     9.69 %

    The MIL Network –

  • MIL-OSI: Blue Foundry Bancorp Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    RUTHERFORD, N.J., April 30, 2025 (GLOBE NEWSWIRE) — Blue Foundry Bancorp (NASDAQ:BLFY) (the “Company”), the holding company for Blue Foundry Bank (the “Bank”), today reported a net loss of $2.7 million, or $0.13 per diluted common share, for the three months ended March 31, 2025, compared to net loss of $2.7 million, or $0.13 per diluted common share, for the three months ended December 31, 2024, and a net loss of $2.8 million, or $0.13 per diluted common share, for the three months ended March 31, 2024.

    James D. Nesci, President and Chief Executive Officer, commented, “We are pleased with the improvement experienced in yields on assets and cost of liabilities as both contributed to a 27 basis points increase in net interest margin. In addition, we continue to maintain our strong capital position, increasing tangible book value to $14.81 per share.”

    Mr. Nesci also noted, “Deposit growth continued in the first quarter, funding loan growth of $42 million. Increases in our commercial real estate and consumer portfolios drove loan growth during the quarter as we remain focused on growing our commercial portfolio, supplemented with consumer loan purchases. Credit quality remained strong with a non-performing asset to total asset ratio of 0.27% and our allowance for credit losses on loans at 81 basis points of our loan portfolio covers non-performing loans by 2.3 times.”

    Highlights for the first quarter of 2025:

    • Deposits increased $43.9 million to $1.39 billion and Loans increased $42.2 million to $1.63 billion compared to the linked quarter.
    • Uninsured deposits to third-party customers totaled approximately 11% of total deposits as of March 31, 2025.
    • Net interest margin increased 27 basis points from the linked quarter to 2.16%.
    • Interest income for the quarter was $22.7 million, an increase of $928 thousand, or 4.3%, compared to the linked quarter.
    • Interest expense for the quarter was $12.0 million, a decrease of $343 thousand, or 2.8%, compared to the linked quarter.
    • Provision for credit losses of $201 thousand was primarily due to the increase in the provision for loans attributed to the increase in the commercial real estate portfolio.
    • Book value per share was $14.82 and tangible book value per share was $14.81. See the “Supplemental Information – Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    • 464,085 shares were repurchased under our share repurchase plans at a weighted average share price of $9.52 per share.

    Loans

    Loans increased by $42.2 million during the first three months of 2025. The Company continues to focus on diversifying its lending portfolio by growing its commercial portfolios. Additionally, we purchased unsecured consumer loans with credit reserves. These loans improved yields while having low exposure to credit loss. During the first three months of 2025, the consumer loan portfolio increased by $34.3 million as a result of these purchases. In addition, the commercial real estate portfolio increased by $28.5 million, of which $14.4 million was in owner-occupied properties and the construction portfolio increased by $7.3 million. The multifamily and residential portfolios decreased by $25.7 million and $5.5 million, respectively.

    The details of the loan portfolio are below:

        March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
        (In thousands)
    Residential   $ 512,793     $ 518,243     $ 516,754     $ 526,453     $ 540,427  
    Multifamily     645,399       671,116       666,304       671,185       671,011  
    Commercial real estate     288,151       259,633       241,711       241,867       244,207  
    Construction     92,813       85,546       80,081       71,882       63,052  
    Junior liens     26,902       25,422       24,174       23,653       22,052  
    Commercial and industrial     18,079       16,311       14,228       12,261       13,372  
    Consumer and other     41,518       7,211       7,731       83       56  
    Total loans     1,625,655       1,583,482       1,550,983       1,547,384       1,554,177  
    Less: Allowance for credit losses     13,152       12,965       13,012       13,027       13,749  
    Loans receivable, net   $ 1,612,503     $ 1,570,517     $ 1,537,971     $ 1,534,357     $ 1,540,428  


    Deposits

    As of March 31, 2025, deposits totaled $1.39 billion, an increase of $43.9 million, or 3.27%, from December 31, 2024, driven by increases of $28.8 million and $19.6 million in NOW and demand accounts and time deposits, respectively, partially offset by decreases in savings accounts of $3.6 million. The Company’s strategy is to focus on attracting the full banking relationship of small- to medium-sized businesses through an extensive suite of deposit products. While there is strong competition for deposits in the northern New Jersey market, we were able to increase core customer deposits during the quarter. Brokered deposits increased $50.0 million during the first quarter of 2025 as higher cost customer time deposits matured and were supplemented with brokered deposits.

    The details of deposits are below:

        March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
        (In thousands)
    Non-interest bearing deposits   $ 25,222     $ 26,001     $ 22,254     $ 24,733     $ 25,342  
    NOW and demand accounts     398,332       369,554       357,503       368,386       373,172  
    Savings     236,779       240,426       237,651       246,559       250,298  
    Core deposits     660,333       635,981       617,408       639,678       648,812  
    Time deposits     726,908       707,339       701,262       671,478       642,372  
    Total deposits   $ 1,387,241     $ 1,343,320     $ 1,318,670     $ 1,311,156     $ 1,291,184  


    Financial Performance Overview:

    First quarter of 2025 compared to the fourth quarter of 2024

    Net interest income compared to the fourth quarter of 2024:

    • Net interest income was $10.7 million for the first quarter of 2025 compared to $9.5 million for the fourth quarter of 2024 as interest earned on interest-earning assets increased and interest paid on time deposits decreased.
    • Net interest margin increased by 27 basis points to 2.16%.
    • The yield on average interest-earning assets increased 14 basis points to 4.51%, while the cost of average interest-bearing liabilities decreased eight basis points to 2.89%.
    • Average interest-earning assets increased by $22.7 million and average interest-bearing liabilities increased by $30.3 million.

    Non-interest expense compared to the fourth quarter of 2024:

    • Non-interest expense increased $748 thousand primarily driven by an increase of $895 thousand in compensation and benefits expenses due to normal salary increases and a reset of variable compensation accruals. Variable compensation, achieved at less than target in 2024, was reset at the start of 2025. In addition, an increase of $109 thousand in occupancy and equipment was largely due to snow removal expenses in the first quarter partially offset by decreases in furniture and equipment expense. These increases were partially offset by a decrease of $174 thousand in other expenses.

    Income tax expense compared to the fourth quarter of 2024:

    • The Company did not record a tax benefit for the losses incurred during the first quarter of 2025 and the fourth quarter of 2024 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At March 31, 2025, the valuation allowance on deferred tax assets was $25.4 million.

    First quarter of 2025 compared to the first quarter of 2024

    Net interest income compared to the first quarter of 2024:

    • Net interest income was $10.7 million for the first three months of 2025 compared to $9.4 million for the same period in 2024. The increase was largely due to increases in interest earned on interest-earning assets and lower interest costs on time deposits.
    • Net interest margin increased by 24 basis points to 2.16%.
    • The yield on average interest-earning assets increased 26 basis points to 4.51%, partially offset by a three basis point increase in the cost of average interest-bearing liabilities.
    • Average interest-earning assets and average interest-bearing liabilities increased by $44.3 million and $70.2 million, respectively. Average loans drove the growth in interest-earning assets, with an increase of $45.7 million. Average interest-bearing deposits increased by $96.6 million, while average FHLB advances decreased by $26.5 million.

    Non-interest expense compared to the first quarter of 2024:

    • Non-interest expense was $13.6 million for the first quarter of 2025, an increase of $387 thousand driven by increases of $289 thousand, $111 thousand and $100 thousand in compensation and benefits expenses, occupancy and equipment expenses and data processing, respectively.

    Income tax expense compared to the first quarter of 2024:

    • The Company did not record a tax benefit for the losses incurred during the first quarters of 2025 and 2024 due to the full valuation allowance required on its deferred tax assets.
    • The Company’s current tax position reflects the previously established full valuation allowance on its deferred tax assets. At March 31, 2025, the valuation allowance on deferred tax assets was $25.4 million.

    Balance Sheet Summary:

    March 31, 2025 compared to December 31, 2024

    Cash and cash equivalents:

    • Cash and cash equivalents increased $3.7 million to $46.2 million.

    Securities available-for-sale:

    • Securities available-for-sale decreased $10.4 million to $286.6 million due to maturities, calls and pay downs offset by a decrease in unrealized losses of $4.1 million.

    Securities held-to-maturity

    • Securities held-to-maturity decreased $1.0 million due to pay downs in the portfolio.

    Total loans:

    • Total loans held for investment increased $42.2 million to $1.63 billion.
    • Consumer, commercial real estate and construction loans increased $34.3 million, $28.5 million, and $7.3 million, respectively. Partially offsetting these increases were decreases in multifamily loans of $25.7 million and residential loans of $5.5 million.
    • During the first quarter, the Company purchased consumer and residential loans totaling $35.0 million and $6.6 million, respectively.

    Deposits:

    • Deposits increased $43.9 million from December 31, 2024 to $1.39 billion at March 31, 2025. This was largely the result of a $28.8 million increase in NOW and demand accounts and a $19.6 million increase in certificates of deposits.
    • Core deposits (defined as non-interest bearing checking, NOW and demand accounts and savings accounts) represented 47.6% of total deposits, compared to 47.3% at December 31, 2024.
    • Brokered deposits totaled $205.0 million and $155.0 million at March 31, 2025 and December 31, 2024, respectively. The increase in brokered deposits supplemented the reduction in retail time deposits.
    • Uninsured and uncollateralized deposits to third-party customers were $159.8 million, or 11% of total deposits, at the end of the first quarter.

    Borrowings:

    • FHLB borrowings decreased $5.5 million to $334.0 million.
    • As of March 31, 2025, the Company had $275.6 million of additional borrowing capacity at the FHLB, $107.5 million in secured lines at the Federal Reserve Bank and $30.0 million of other unsecured lines of credit.

    Capital:

    • Shareholders’ equity decreased $5.5 million to $326.7 million. The decrease was primarily driven by the repurchase of shares, including shares netted for income tax withholding on vested equity awards, at a cost of $4.8 million. Additionally, the year-to-date loss, partially offset by favorable changes in accumulated other comprehensive income, contributed to the decrease in shareholders’ equity.
    • Tangible equity to tangible assets was 15.61% and tangible common equity per share outstanding was $14.81. See the “Supplemental Information – Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    • The Bank’s capital ratios remain above the FDIC’s “well capitalized” standards.

    Asset quality:

    • As of March 31, 2025, the allowance for credit losses (“ACL”) on loans as a percentage of gross loans was 0.81%.
    • The Company recorded a provision for credit losses of $201 thousand for the first quarter of 2025. For the first quarter of 2025, there was a provision of $203 thousand in the ACL for loans, offset by a release of $1 thousand in the ACL for both off-balance-sheet commitments and held-to-maturity securities. The provision was primarily driven by the increase in loan balances and the shift in composition of the portfolio.
    • Non-performing loans totaled $5.7 million, or 0.35% of total loans compared to $5.1 million, or 0.33% of total loans at December 31, 2024.
    • Net charge-offs were $16 thousand for the three months ended March 31, 2025.
    • The ratio of allowance for credit losses on loans to non-performing loans was 229.81% at March 31, 2025 compared to 254.02% at December 31, 2024.

    About Blue Foundry

    Blue Foundry Bancorp is the holding company for Blue Foundry Bank, a place where things are made, purpose is formed, and ideas are crafted. Headquartered in Rutherford NJ, with a presence in Bergen, Essex, Hudson, Middlesex, Morris, Passaic, Somerset and Union counties, Blue Foundry Bank is a full-service, innovative bank serving the doers, movers, and shakers in our communities. We offer individuals and businesses alike the tailored products and services they need to build their futures. With a rich history dating back more than 145 years, Blue Foundry Bank has a longstanding commitment to its customers and communities. To learn more about Blue Foundry Bank visit BlueFoundryBank.com or call (888) 931-BLUE. Member FDIC.

    Conference Call Information

    A conference call covering Blue Foundry’s first quarter 2025 earnings announcement will be held today, Wednesday, April 30, 2025 at 11:00 a.m. (EDT). To listen to the live call, please dial 1-833-470-1428 (toll free) or +1-404-975-4839 (international) and use access code 556514. The webcast (audio only) will be available on ir.bluefoundrybank.com. The conference call will be recorded and will be available on the Company’s website for one month.

    Contact:
    James D. Nesci
    President and Chief Executive Officer
    BlueFoundryBank.com
    jnesci@bluefoundrybank.com
    201-972-8900

    Forward-Looking Statements

    Certain statements contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements, which are based on certain current assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of the words “may,” “will,” “should,” “could,” “would,” “plan,” “potential,” “estimate,” “project,” “believe,” “intend,” “anticipate,” “expect,” “target” and similar expressions.

    Forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: inflation and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase in the level of defaults, losses and prepayments on loans we have made and make; general economic conditions, either nationally or in our market areas, that are worse than expected, including potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies; including potential recessionary conditions, the imposition of tariffs or other domestic or international governmental policies; changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in our market area; our ability to implement and change our business strategies; competition among depository and other financial institutions; adverse changes in the securities or secondary mortgage markets; changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees, capital requirements and insurance premiums; changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; changes in the quality or composition of our loan or investment portfolios; technological changes that may be more difficult or expensive than expected; a failure or breach of our operational or security systems or infrastructure, including cyber-attacks; the inability of third party providers to perform as expected; our ability to manage market risk, credit risk and operational risk in the current economic environment; changes in consumer spending, borrowing and savings habits; changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission or the Public Company Accounting Oversight Board; our ability to retain key employees; the current or anticipated impact of military conflict, terrorism or other geopolitical events; the ability of the U.S. Government to manage federal debt limits; and changes in the financial condition, results of operations or future prospects of issuers of securities that we own.

    Because of these and other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements. Except as required by applicable law or regulation, we do not undertake, and we specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

     
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Financial Condition
     
        March 31, 2025   December 31, 2024   March 31, 2024
        (unaudited)   (audited)   (unaudited)
        (Dollars in Thousands)
    ASSETS            
    Cash and cash equivalents   $ 46,220     $ 42,502     $ 53,753  
    Securities available-for-sale, at fair value     286,620       297,028       265,191  
    Securities held to maturity     32,038       33,076       33,217  
    Other investments     17,605       17,791       17,908  
    Loans, net     1,612,503       1,570,517       1,540,428  
    Real estate owned, net     —       —       593  
    Interest and dividends receivable     8,746       8,014       8,001  
    Premises and equipment, net     28,805       29,486       31,696  
    Right-of-use assets     22,778       23,470       24,454  
    Bank owned life insurance     22,638       22,519       22,153  
    Other assets     14,253       16,280       30,393  
    Total assets   $ 2,092,206     $ 2,060,683     $ 2,027,787  
                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY                
    Liabilities            
    Deposits   $ 1,387,241     $ 1,343,320     $ 1,291,184  
    Advances from the Federal Home Loan Bank     334,000       339,500       342,500  
    Advances by borrowers for taxes and insurance     9,743       9,356       9,368  
    Lease liabilities     24,490       25,168       26,081  
    Other liabilities     10,069       11,141       8,498  
    Total liabilities     1,765,543       1,728,485       1,677,631  
    Shareholders’ equity     326,663       332,198       350,156  
    Total liabilities and shareholders’ equity   $ 2,092,206     $ 2,060,683     $ 2,027,787  
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Statements of Operations
    (Dollars in Thousands Except Per Share Data) (Unaudited)
     
        Three months ended
        March 31, 2025   December 31, 2024   March 31, 2024
        (Dollars in thousands)
    Interest income:            
    Loans   $ 18,892     $ 17,777     $ 17,192  
    Taxable investment income     3,785       3,972       3,614  
    Non-taxable investment income     36       36       36  
    Total interest income     22,713       21,785       20,842  
    Interest expense:            
    Deposits     9,026       9,573       8,413  
    Borrowed funds     2,943       2,739       3,012  
    Total interest expense     11,969       12,312       11,425  
    Net interest income     10,744       9,473       9,417  
    Provision for (release of) credit losses     201       (301 )     (535 )
    Net interest income after provision for (release of) credit losses     10,543       9,774       9,952  
    Non-interest income:            
    Fees and service charges     243       306       329  
    Gain on sale of loans     —       —       36  
    Other income     151       114       86  
    Total non-interest income     394       420       451  
    Non-interest expense:            
    Compensation and employee benefits     7,838       6,943       7,549  
    Occupancy and equipment     2,303       2,194       2,192  
    Data processing     1,487       1,514       1,387  
    Advertising     67       81       72  
    Professional services     699       737       730  
    Federal deposit insurance     223       226       199  
    Other     1,012       1,186       1,113  
    Total non-interest expense     13,629       12,881       13,242  
    Loss before income tax expense     (2,692 )     (2,687 )     (2,839 )
    Income tax expense     —       —       —  
    Net loss   $ (2,692 )   $ (2,687 )   $ (2,839 )
    Basic loss per share   $ (0.13 )   $ (0.13 )   $ (0.13 )
    Diluted loss per share   $ (0.13 )   $ (0.13 )   $ (0.13 )
    Weighted average shares outstanding            
    Basic     20,404,941       20,826,845       22,095,260  
    Diluted (1)     20,404,941       20,826,845       22,095,260  
    (1) The assumed vesting of outstanding restricted stock units had an anti-dilutive effect on diluted earnings per share due to the Company’s net loss for the 2025 and 2024 periods.
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in Thousands Except Per Share Data) (Unaudited)
     
        Three months ended
        March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
        (Dollars in thousands)
    Performance Ratios (%):                    
    Loss on average assets     (0.53 )     (0.52 )     (0.79 )     (0.47 )     (0.56 )
    Loss on average equity     (3.29 )     (3.17 )     (4.68 )     (2.71 )     (3.23 )
    Interest rate spread (1)     1.62       1.40       1.29       1.43       1.40  
    Net interest margin (2)     2.16       1.89       1.82       1.96       1.92  
    Efficiency ratio (3) (4)     122.36       130.20       140.04       130.73       134.19  
    Average interest-earning assets to average interest-bearing liabilities     120.01       120.84       121.37       122.28       122.50  
    Tangible equity to tangible assets (4)     15.61       16.11       16.50       16.88       17.25  
    Book value per share (5)   $ 14.82     $ 14.75     $ 14.76     $ 14.70     $ 14.61  
    Tangible book value per share (4) (5)   $ 14.81     $ 14.74     $ 14.74     $ 14.69     $ 14.60  
                         
    Asset Quality:                    
    Non-performing loans   $ 5,723     $ 5,104     $ 5,146     $ 6,208     $ 6,691  
    Real estate owned, net     —       —       —       —       593  
    Non-performing assets   $ 5,723     $ 5,104     $ 5,146     $ 6,208     $ 7,284  
    Allowance for credit losses to total loans (%)     0.81       0.83       0.84       0.84       0.88  
    Allowance for credit losses to non-performing loans (%)     229.81       254.02       252.86       209.84       205.48  
    Non-performing loans to total loans (%)     0.35       0.33       0.33       0.40       0.43  
    Non-performing assets to total assets (%)     0.27       0.25       0.25       0.30       0.36  
    Net charge-offs to average outstanding loans during the period (%)     —       —       —       —       —  
    (1) Interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (2) Net interest margin represents net interest income divided by average interest-earning assets.
    (3) Efficiency ratio represents adjusted non-interest expense divided by the sum of net interest income plus non-interest income.
    (4) See the “Supplemental Information – Non-GAAP Financial Measures” tables below for additional information regarding our non-GAAP measures.
    (5) March 31, 2025 per share metrics computed using 22,047,649 total shares outstanding.
    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Analysis of Net Interest Income
    (Dollars in Thousands) (Unaudited)
     
        Three Months Ended,
        March 31, 2025   December 31, 2024   March 31, 2024
        Average Balance   Interest   Average Yield/Cost   Average Balance   Interest   Average Yield/Cost   Average Balance   Interest   Average Yield/Cost
        (Dollars in thousands)
    Assets:                                    
    Loans (1)   $ 1,601,262   $ 18,892   4.72 %   $ 1,557,342   $ 17,777   4.57 %   $ 1,555,534   $ 17,192   4.45 %
    Mortgage-backed securities     189,820     1,323   2.79 %     185,382     1,254   2.71 %     160,349     876   2.20 %
    Other investment securities     163,590     1,689   4.13 %     164,392     1,573   3.83 %     183,717     1,652   3.62 %
    FHLB stock     17,680     399   9.02 %     17,153     411   9.58 %     20,123     492   9.83 %
    Cash and cash equivalents     43,195     410   3.80 %     68,536     770   4.50 %     51,561     630   4.92 %
    Total interest-earning assets     2,015,547     22,713   4.51 %     1,992,805     21,785   4.37 %     1,971,284     20,842   4.25 %
    Non-interest earning assets     61,518             61,586             59,357        
    Total assets   $ 2,077,065           $ 2,054,391           $ 2,030,641        
    Liabilities and shareholders’ equity:                                    
    NOW, savings, and money market deposits   $ 619,234     2,031   1.33 %   $ 614,623     1,988   1.29 %   $ 616,169     1,937   1.26 %
    Time deposits     712,796     6,995   3.98 %     698,801     7,585   4.32 %     619,220     6,476   4.21 %
    Interest-bearing deposits     1,332,030     9,026   2.75 %     1,313,424     9,573   2.90 %     1,235,389     8,413   2.74 %
    FHLB advances     347,394     2,943   3.39 %     335,686     2,739   3.26 %     373,874     3,012   3.24 %
    Total interest-bearing liabilities     1,679,424     11,969   2.89 %     1,649,110     12,312   2.97 %     1,609,263     11,425   2.86 %
    Non-interest bearing deposits     25,411             24,945             26,491        
    Non-interest bearing other     40,679             43,016             41,569        
    Total liabilities     1,745,514             1,717,071             1,677,323        
    Total shareholders’ equity     331,551             337,320             353,318        
    Total liabilities and shareholders’ equity   $ 2,077,065           $ 2,054,391           $ 2,030,641        
    Net interest income       $ 10,744           $ 9,473           $ 9,417    
    Net interest rate spread (2)           1.62 %           1.40 %           1.39 %
    Net interest margin (3)           2.16 %           1.89 %           1.92 %
    (1) Average loan balances are net of deferred loan fees and costs, premiums and discounts and include non-accrual loans.
    (2) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (3) Net interest margin represents net interest income divided by average interest-earning assets.

    BLUE FOUNDRY BANCORP AND SUBSIDIARY
    Supplemental Information – Non-GAAP Financial Measures
    (Unaudited)

    This press release contains certain supplemental financial information, described in the table below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles (“GAAP”) that management uses in its analysis of Blue Foundry’s performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding Blue Foundry’s financial results. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results and Blue Foundry strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    Net income, as presented in the Consolidated Statements of Operations, includes the provision for credit losses and income tax expense, while pre-provision net revenue does not.

        Three months ended
        March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
        (Dollars in thousands, except per share data)
    Pre-provision net revenue and efficiency ratio:                        
    Net interest income   $ 10,744     $ 9,473     $ 9,087     $ 9,573     $ 9,417  
    Other income     394       420       387       536       451  
    Total revenue     11,138       9,893       9,474       10,109       9,868  
    Operating expenses     13,629       12,881       13,267       13,215       13,242  
    Pre-provision net loss   $ (2,491 )   $ (2,988 )   $ (3,793 )   $ (3,106 )   $ (3,374 )
    Efficiency ratio     122.4 %     130.2 %     140.0 %     130.7 %     134.2 %
                         
    Core deposits:                    
    Total deposits   $ 1,387,241     $ 1,343,320     $ 1,318,670     $ 1,311,156     $ 1,291,184  
    Less: time deposits     726,908       707,339       701,262       671,478       642,372  
    Core deposits   $ 660,333     $ 635,981     $ 617,408     $ 639,678     $ 648,812  
    Core deposits to total deposits     47.6 %     47.3 %     46.8 %     48.8 %     50.2 %
                         
    Total assets   $ 2,092,206     $ 2,060,683     $ 2,055,093     $ 2,045,452     $ 2,027,787  
    Less: intangible assets     189       244       300       386       473  
    Tangible assets   $ 2,092,017     $ 2,060,439     $ 2,054,793     $ 2,045,066     $ 2,027,314  
                         
    Tangible equity:                    
    Shareholders’ equity   $ 326,663     $ 332,198     $ 339,299     $ 345,597     $ 350,156  
    Less: intangible assets     189       244       300       386       473  
    Tangible equity   $ 326,474     $ 331,954     $ 338,999     $ 345,211     $ 349,683  
                         
    Tangible equity to tangible assets     15.61 %     16.11 %     16.50 %     16.88 %     17.25 %
                         
    Tangible book value per share:                    
    Tangible equity   $ 326,474     $ 331,954     $ 338,999     $ 345,211     $ 349,683  
    Shares outstanding     22,047,649       22,522,626       22,990,908       23,505,357       23,958,888  
    Tangible book value per share   $ 14.81     $ 14.74     $ 14.74     $ 14.69       14.60  

    The MIL Network –

  • MIL-OSI Australia: Limited access returns to world class Ex-HMAS Brisbane dive site after ex-Tropical Cyclone Alfred

    Source: Tasmania Police

    Issued: 30 Apr 2025

    The Ex-HMAS Brisbane Conservation Park dive site has partially reopened following a temporary closure in the wake of ex-Tropical Cyclone Alfred.

    Renowned for its crystal-clear waters and vibrant marine life, this iconic piece of Australian naval history offers divers an unforgettable underwater experience just off the Sunshine Coast.

    Although rectification works are continuing to protect both divers and its surrounding marine environment, guided external-only dives have been given the green light to recommence.

    Access to the site is available exclusively through bookings with SunReef and Scuba World, with the public mooring set to remain closed until further notice to support rectification activities and ensure visitor safety.

    Principal Ranger of Southern Marine Parks, Queensland Parks and Wildlife Service, Steve Hoseck emphasised the importance of the rectification efforts in getting tourism operators back in business.

    “Reinstating the Ex-HMAS Brisbane as one of Australia’s premier wreck diving destinations is a top priority,” Mr Hoseck said.

    “We’re allowing controlled access for certified advanced divers, giving them a unique opportunity to witness the impact of a cyclone on a wreck while making sure ongoing rectification work continues uninterrupted.

    “Divers from around the world are drawn to the Ex-HMAS Brisbane wreck, and even with limited access, we’re delighted to get people back in the water to experience this Queensland icon.”

    Access Guidelines:

    • No physical contact with the wreck permitted.
    • Water visibility must be greater than 5m.
    • No swimming over or entering the rectification areas.
    • Divers must remain 2.5m away from the wreck.
    • Max distance between divers of 2m.
    • Group sizes are limited and must be accompanied by a certified guide.
    • Set dive route.
    • Certified advanced divers and above.

    For the latest updates on access and restoration progress, head to our official Park Alert.

    Media contact: DETSI Media Unit on (07) 3339 5831 or media@des.qld.gov.au

    MIL OSI News –

  • MIL-OSI Australia: Illegal hunters catch heavy fines in Bribie Island National Park

    Source: Tasmania Police

    Issued: 30 Apr 2025

    Queensland Police Service (QPS), in collaboration with Queensland Parks and Wildlife Service (QPWS), have fined two men for illegal pig hunting activity within Bribie Island National Park.

    Feral pigs are a declared pest in Queensland and can be managed under strict control measures on private land, but hunting in national parks is strictly prohibited.

    The incident occurred late last month after park rangers and police were alerted to two vehicles entering the park on multiple occasions to hunt feral pigs.

    Officers and rangers observed suspicious activity in the area and upon further investigation, discovered the men had travelled on restricted access roads, entering the park unlawfully with pig-hunting dogs and associated equipment.

    The offenders allegedly removed their number plates to avoid detection from number plate recognition cameras, however police were able to successfully identify the involved vehicles.

    The two men were intercepted by police and issued infringement notices, receiving a combined $9,032 in fines under Queensland’s Nature Conservation Act 1992 and various Transport Operations Acts and Regulations.

    QPWS Manager Chris Skennar said the illegal activities can cause major disruption to coordinated pest programs. QPWS carries out targeted pest control around Bribie Island National Park to protect native wildlife, manage invasive species and help restore the island’s natural ecosystems.

    “Bribie Island National Park is a fragile ecosystem that supports a wide variety of unique native species. Illegal hunting not only poses a direct threat to local wildlife, but also damages sensitive landscapes, undermining the conservation efforts our rangers work so hard to maintain.”

    “Even if the intention is to target a pest species, the way it’s done matters. National parks aren’t a remote property, they’re a shared, protected space. We’re committed to enforcing the law and ensuring our parks are safe for both visitors and wildlife.

    “We work closely with QPS to protect these areas and appreciate their support and the support of the community in reporting incidents like this; your information helps to ensure our national parks are protected.”

    Moreton District Officer Acting Chief Superintendent Adam Guild said illegal activity will be met with significant fines or charges.

    “I acknowledge the good policing work that was done to identify and intercept the alleged offenders, despite their attempts to go undetected.

    “We will continue to support QPWS and work with the rangers to assist in protecting our national parks and eliminating criminal behaviour within them.”

    Any illegal activity in national parks and state forests can be reported anonymously by calling 1300 130 372.

    Media contact:                 DETSI Media Unit on (07) 3339 5831 or media@des.qld.gov.au

    MIL OSI News –

  • MIL-OSI: EfTEN Real Estate Fund AS unaudited results for 1st quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    In the first quarter of 2025, EfTEN Real Estate Fund AS invested a significant part of the capital raised in the previous quarter, primarily in the elderly care home segment. In February, the Fund’s 100% subsidiary EfTEN Hiiu OÜ signed a binding agreement to acquire the property at Hiiu 42 in Tallinn, with the aim to developing a general care home in cooperation with Südamekodud AS. The acquisition price of the property was €4 million, with up to an additional €2.5 million for the reconstruction of the building. The expected return on the investment is 8% per annum. At the end of March, the real rights contract was concluded and the transaction finalized. As part of the transaction, EfTEN Hiiu OÜ signed a long-term (10+10 years) lease agreement with Hiiu Südamekodu OÜ. Part of the property continues to be used by the North Estonia Medical Centre Foundation. The building will be partially reconstructed into the “Nõmme Südamekodu” general care home, with future capacity for up to 170 clients.

    In January 2025, the Fund’s subsidiary EfTEN Ermi OÜ commenced construction of the second phase of Tartu Südamekodu, which will add 60 beds and a solar park to the existing care home. The total project cost is approximately €1.3 million, with construction expected to be completed by July 2025. The expected return on this investment is 8.1% per annum.

    Upon completion of these projects, EfTEN Real Estate Fund AS will own four elderly care homes with a combined capacity of nearly 800 beds.

    On 31 March 2025, the Fund’s subsidiary EfTEN Seljaku OÜ terminated the lease agreement with AS Hortes (in bankruptcy) concerning the Laagri Hortes properties. A new lease agreement has been signed with Rikets Aianduskeskus OÜ, which will commence operations on the premises as of 1 April 2025.

    In April 2025, the ICONFIT logistics building owned by the fund’s subsidiary EfTEN Paemurru OÜ was completed. The fund began earning rental income from the property starting from April 15.

    Financial Overview

    The consolidated sales revenue of EfTEN Real Estate Fund AS for Q1 2025 amounted to €7.858 million (Q1 2024: €7.961 million), and the consolidated net rental income (NOI) totaled €7.211 million (Q1 2024: €7.343 million). The net rental income margin remained stable at 92% (2024: 92%), indicating that costs directly related to property management (including land tax, insurance, maintenance and improvement expenses) and marketing accounted for 8% (2024: 8%) of revenue.

    The Fund’s consolidated net profit for Q1 2025 was €4.167 million (Q1 2024: €3.808 million). A key contributor to the profit growth was the decrease in interest expenses due to the decline in EURIBOR—interest costs fell by €432 thousand, or 19%, compared to Q1 2024.

    Real Estate Portfolio

    As of 31 March 2025, the Group held 37 (31 December 2024: 36) investment properties with a total fair value of €380.160 million (31 December 2024: €373.815 million) and an acquisition cost of €376.906 million (31 December 2024: €370.561 million). In addition to properties held by subsidiaries, the Group owns a 50% stake in the joint venture operating the Palace Hotel in Tallinn, with a fair value of €8.632 million as of 31 March 2025 (31 December 2024: €8.630 million).

    In Q1 2025, the Group made new and follow-on investments totalling €6.345 million.

    In March 2025, EfTEN Hiiu OÜ acquired the property at Hiiu 42, Tallinn, for €4 million. The North Estonia Medical Centre Foundation continues to use part of the property under an existing lease. A long-term (10+10 years) lease was signed with Hiiu Südamekodu OÜ, a subsidiary of Südamekodud AS, which will develop the premises into the “Nõmme Südamekodu” general care home with capacity for up to 170 clients.

    Construction of the C-building at Valkla Care Home continued in Q1 2025, with a total investment of €343 thousand. Construction of the second phase of Ermi Care Home in Tartu began, with works totalling €192 thousand during the quarter. In addition, construction at the Paemurru Logistics Centre progressed, with Q1 investment totalling €1.515 million.

    In Q1 2025, the Group earned €7.673 million in rental income, remaining on par with the previous year.

    As of 31 March 2025, the vacancy rate of the Group’s real estate portfolio was 4.4% (31 December 2024: 2.6%). The highest vacancy was in the office segment at 17.7%, where filling vacant spaces has taken longer than previously.

    Financing

    In Q1 2025, the Fund’s subsidiary EfTEN Riga Airport SIA extended its loan agreement with the bank. Over the next 12 months, six of the Group’s subsidiaries have loan agreements maturing, with a total outstanding balance of €20.38 million as of 31 March 2025. These maturing loans have LTVs between 29% and 48%. Given the stable rental cash flows of the properties, the Group’s management does not foresee obstacles in refinancing these loans.

    As of 31 March 2025, the Group’s weighted average interest rate on loans was 4.37% (31 December 2024: 4.89%) and the loan-to-value (LTV) ratio stood at 40% (31 December 2024: 40%). All loan agreements of the subsidiaries are based on floating interest rates. The Fund’s interest coverage ratio (ICR) was 3.4 as of 31 March 2025 (31 March 2024: 2.9).

    Share Information

    As of 31 March 2025, the registered share capital of EfTEN Real Estate Fund AS was €114.403 million (unchanged from 31 December 2024), consisting of 11,440,340 shares with a nominal value of €10 each.

    The net asset value (NAV) per share as of 31 March 2025 was €20.74 (31 December 2024: €20.37), representing an increase of 1.8% over the first three months of 2025.

    CONSOLIDATED STATEMEMT OF COMPREHENSIVE INCOME 

      I quarter
      2025 2024
    € thousands    
    Sales revenue 7,858 7,961
    Cost of services sold -506 -418
    Gross profit 7,352 7,543
         
    Marketing costs -141 -200
    General and administrative expenses -1,006 -939
    Other operating income and expense -37 42
    Operating profit 6,168 6,446
         
    Profit/-loss from joint ventures -58 -50
    Interest income 83 101
    Other finance income and expense -1,803 -2,235
    Profit before income tax 4,390 4,262
         
    Income tax expense -223 -454
    Net profit of the financial year 4,167 3,808
    Total comprehensive income for the period 4,167 3,808
    Earnings per share    
    – basic 0.36 0.35
    – diluted 0.36 0.35

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION

      31.03.2025 31.12.2024
    € thousands    
    ASSETS    
    Cash and cash equivalents 19,038 18,415
    Short-term deposits 0 2,092
    Receivables and accrued income 1,645 2,055
    Prepaid expenses 128 138
    Total current assets 20,811 22,700
         
    Long-term receivables 140 154
    Shares in joint ventures 1,902 1,960
    Investment property 380,160 373,815
    Property, plant and equipment 121 134
    Total non-current assets 382,323 376,063
    TOTAL ASSETS 403,134 398,763
         
    LIABILITIES AND EQUITY    
    Borrowings 25,858 30,300
    Liabilities and prepayments 3,056 3,245
    Total current liabilities 28,914 33,545
         
    Borrowings 123,813 119,120
    Other long-term liabilities 1,923 1,928
    Deferred income tax liability 11,244 11,097
    Total non-current liabilities 136,980 132,145
    TOTAL LIABILITIES 165,894 165,690
         
    Share capital 114,403 114,403
    Share premium 90,306 90,306
    Statutory reserve capital 2,799 2,799
    Retained earnings 29,732 25,565
    TOTAL EQUITY 237,240 233,073
    TOTAL LIABILITIES AND EQUITY 403,134 398,763

    Marilin Hein
    CFO
    Phone +372 6559 515
    E-mail: marilin.hein@eften.ee

    Attachment

    The MIL Network –

  • MIL-OSI: Societe Generale: First quarter 2025 earnings

    Source: GlobeNewswire (MIL-OSI)

    RESULTS AT 31 MARCH 2025


    Press release                                                            
    Paris, 30 April 2025

    STRONG QUARTERLY RESULTS, AHEAD OF OUR 2025 TARGETS

    Quarterly revenues of EUR 7.1 billion, +6.6% vs. Q1 24 and +10.2% excluding asset disposals
    (vs. an annual target of more than +3%). Positive contribution from all businesses, driven by a strong rebound in French Retail Banking, a solid performance of Global Banking and Investor Solutions and a sustained activity in Mobility, International Retail Banking and Financial Services

    Strict cost management with operating expenses down -4.4% vs. Q1 24, excluding asset disposals. Ahead of our 2025 target to reduce operating expenses by more than -1%, excluding asset disposals

    Cost-to-income ratio at 65.0% in Q1 25, ahead of our 2025 target (<66%)

    Low cost of risk at 23 basis points in Q1 25, below the 2025 target of 25 to 30 basis points. The amount of S1/S2 provisions remains high at EUR 3.1 billion (more than 2x 2024 cost of risk), and has been further increased

    Group net income of EUR 1,608 million, x2.4 vs. Q1 24

    Profitability (ROTE) at 11.0%, ahead of our 2025 target of more than 8%. Even if restated for net gains on asset disposals of around EUR 200 million and considering a quarterly linear distribution of taxes (IFRIC 21) for an amount of around EUR 300 million, the ROTE stands at 10.9%

    SOLID CAPITAL AND LIQUIDITY PROFILE

    CET1 ratio of 13.4%1 at end-Q1 25, around 320 basis points above the regulatory requirement

    Liquidity Coverage Ratio at 140% at end-Q1 25

    Provision for distribution of EUR 0.912 per share, at end-March 2025

    Completion of the 2024 share buy-back programme of EUR 872 million

    ORDERLY EXECUTION OF ASSET DISPOSALS

    Disposal of SGEF’s activities completed on 28 February 2025, except for those in the Czech Republic and Slovakia, representing a positive impact of around +30 basis points on the Group’s CET1 ratio in Q1 25

    Disposals of Societe Generale Private Banking Suisse and SG Kleinwort Hambros completed on 31 January 2025 and 31 March 2025, for a total impact of around +10 basis points on the Group’s CET1 ratio

    Slawomir Krupa, the Group’s Chief Executive Officer, commented:
    « We are releasing today a very good set of results. Our revenues have grown across all our businesses. Our costs and our cost-to-income ratio have decreased across all our businesses. Our first quarter results are above all our annual targets, putting us in a favourable position to achieve them, thanks to our disciplined execution and prudent and rigorous risk management. Since the presentation of our Strategic Plan, we have built a strong capital position, and we have delivered a steady and material increase in our performance. Our diversified and resilient model allows us to navigate efficiently in the current environment. This is the result of the precise execution of our strategy by fully focused and talented teams whom I warmly thank for their commitment. We measure how far we’ve come and how far we still have to go. We will therefore pursue our work with the same focus and discipline, confident in our ability to deliver our 2026 roadmap and beyond, a sustainable and profitable growth. »

    1. GROUP CONSOLIDATED RESULTS
    In EURm Q1 25 Q1 24 Change
    Net banking income 7,083 6,645 +6.6% +9.9%*
    Operating expenses (4,604) (4,980) -7.6% -4.6%*
    Gross operating income 2,479 1,665 +48.9% +53.0%*
    Net cost of risk (344) (400) -13.9% -9.5%*
    Operating income 2,135 1,265 +68.8% +72.1%*
    Net profits or losses from other assets 202 (80) n/s n/s
    Income tax (490) (274) +79.0% +84.8%*
    Net income 1,855 917 x 2.0 x 2.1*
    O.w. non-controlling interests 247 237 +4.0% +12.0%*
    Group net income 1,608 680 x 2.4 x 2.4*
    ROE 9.7% 3.6%    
    ROTE 11.0% 4.1%    
    Cost to income 65.0% 74.9%    

    Asterisks* in the document refer to data at constant perimeter and exchange rates

    Societe Generale’s Board of Directors, which met on 29 April 2025 under the chairmanship of Lorenzo Bini Smaghi, examined the Societe Generale Group’s results for the first quarter of 2025.

    Net banking income 

    Net banking income stood at EUR 7.1 billion, up +6.6% vs. Q1 24 and up +10.2% vs. Q1 24, excluding asset disposals.

    Revenues of French Retail, Private Banking and Insurance were up +14.1% vs. Q1 24 (+16.5% excluding asset disposals and +2.5% excluding both asset disposals and short-term hedge impact) to stand at EUR 2.3 billion in Q1 25. Net interest income recovered sharply in Q1 25 (+28.4% vs. Q1 24) and was broadly stable when restated for asset disposals and short-term hedges accounted for in Q1 24 (around EUR -270 million). Assets under management in Private Banking and Insurance grew by +6% and +5%, respectively (excluding asset disposals in Switzerland and in the United Kingdom) in Q1 25 vs. Q1 24. Lastly, BoursoBank continued its strong commercial development with nearly 460,000 new customers during the quarter, reaching a customer base of around 7.6 million clients at end-March 2025.

    Global Banking and Investor Solutions registered a +10.0% increase in revenues relative to Q1 24. These totalled EUR 2.9 billion for the quarter, driven by strong momentum in equities and in Financing and Advisory. Global Markets grew by +10.9% in Q1 25 vs. Q1 24. Equity revenues were up +21.8%, reaching a quarterly record level3, driven by strong momentum in flow and listed products. Fixed income and currencies were down -2.4% due to lower client activity on rates investment solutions and margin compression in financing activities. Commercial activity nevertheless remained buoyant in rates and forex brokerage due to high volatility. In Global Banking and Advisory, revenues are up +10.5% with a solid commercial momentum in asset finance. Furthermore, the performance was resilient in Mergers and Acquisitions (M&A) and Debt Capital Markets (DCM). Similarly, Global Transaction and Payment Services posted an +8.7% increase in revenues vs. Q1 24, driven by higher payment volumes with institutional clients and strong commercial development for corporate clients.

    Mobility, International Retail Banking and Financial Services’ revenues were down -7.4% vs. Q1 24, mainly due to a perimeter effect of EUR -176 million in Q1 25. Excluding the impact of asset disposals, they were up +0.8%. International Retail Banking recorded a -12.1% fall in revenues vs. Q1 24 to EUR 0.9 billion, due to a perimeter effect related to the disposals completed in Africa (Morocco, Chad, Madagascar). They rose by +1.9% at constant perimeter and exchange rates. Revenues from Mobility and Financial Services were also down -3.0% vs. Q1 24 due to the disposal of SGEF’s operations (except for those in the Czech Republic and Slovakia) in Q1 25. Besides, Ayvens’ revenues were stable vs. Q1 24 owing to improved margins, offsetting the normalisation of the results of used car sales.

    The Corporate Centre recorded revenues of EUR -112 million in Q1 25.

    Operating expenses 

    Operating expenses came to EUR 4,604 million in Q1 25, down -7.6% vs. Q1 24 and -4.4% excluding asset disposals. The decrease in operating expenses is notably explained by a decrease in transformation charges of EUR 278 million, an increase of EUR 29 million related to taxes on variable compensation, an increase in expenses of EUR 22 million related to Bernstein perimeter, and EUR 5 million related to disposal transaction costs. Excluding these non-recurring items, operating expenses were slightly up, confirming the strong cost discipline.

    The cost-to-income ratio stood at 65.0% in Q1 25, down sharply from Q1 24 (74.9%) and below the target of <66% estimated for 2025.

    Cost of risk

    The cost of risk was stable over the quarter at 23 basis points (or EUR 344 million). It comprises a provision for non-performing loans of EUR 330 million (around 22 basis points) and a provision for performing loans of EUR 14 million.

    At end-March, the Group had a stock of provisions for performing loans of EUR 3,131 million, slightly up +0.4% compared with 31 December 2024, which represents more than 2x 2024 cost of risk.

    The gross non-performing loan ratio stood at 2.82%4,5 at 31 March 2025, broadly stable compared to its end – December 2024 level (2.81%). The net coverage ratio on the Group’s non-performing loans stood at 82%6 at 31 March 2025 (after netting of guarantees and collateral).

    Net profits from other assets

    The Group recorded a net gain of EUR +202 million in Q1 25, mainly related to the accounting impacts of completed asset sales of SGEF7, Societe Generale Private Banking Suisse and SG Kleinwort Hambros.

    Group net Income

    Group net income stood at EUR 1,608 million for the quarter, equating to a Return on Tangible Equity (ROTE) of 11.0%.

    1. DELIVERING ON OUR ESG AMBITIONS

    The Group is in line with its portfolio alignment targets in the most carbon-emitting sectors, including since 2019 a reduction of more than 50% in its upstream exposure to oil and gas, and a reduction of around 50% of its carbon emission intensity in power.

    Reflecting progress on portfolio alignment, the Group’s contribution to sustainable finance amounted to around 80 billion euros at the end of 2024, ahead of its target of 500 billion euros for the 2024-2030 period.

    The Group is well positioned to seize new opportunities in the environmental transition. Societe Generale has acted as exclusive financial advisor for the UK’s Net Zero Teesside Power and Northern Endurance Partnership projects, which aim to be the world’s first gas-fired power station project with carbon capture and storage.

    These actions are recognized externally, with best-in-class ratings from extra-financial rating agencies and through numerous awards.

    1. THE GROUP’S FINANCIAL STRUCTURE

    At 31 March 2025, the Group’s Common Equity Tier 1 ratio stood at 13.4%, or around 320 basis points above the regulatory requirement. Likewise, the Liquidity Coverage Ratio (LCR) was well above regulatory requirements at 140% at end-March 2025 (an average of 150% for the quarter), while the Net Stable Funding Ratio (NSFR) stood at 115% at end-March 2025.

    All liquidity and solvency ratios are well above the regulatory requirements.

      31/03/2025 31/12/2024 Requirements
    CET1(1) 13.4% 13.3% 10.22%
    Tier 1 ratio(1) 16.1% 16.1% 12.14%
    Total Capital(1) 19.1% 18.9% 14.70%
    Leverage ratio(1) 4.4% 4.3% 3.60%
    TLAC (% RWA)(1) 29.7% 29.7% 22.32%
    TLAC (% leverage)(1) 8.2% 8.0% 6.75%
    MREL (% RWA)(1) 33.3% 34.2% 27.59%
    MREL (% leverage)(1) 9.2% 9.2% 6.23%
    End of period LCR 140% 162% >100%
    Period average LCR 150% 150% >100%
    NSFR 115% 117% >100%
    In EURbn 31/03/2025 31/12/2024
    Total consolidated balance sheet 1,554 1,574
    Group shareholders’ equity 71 70
    Risk-weighted assets 393 390
    O.w. credit risk 318 327
    Total funded balance sheet 931 952
    Customer loans 459 463
    Customer deposits 596 614

    8
    As of 31 March 2025, the parent company has issued EUR 9.0 billion of medium/long-term debt under its 2025 financing programme, including EUR 4.5 billion of pre-financing raised at the end of 2024. The subsidiaries had issued EUR 1.0 billion. In all, the Group has issued a total of EUR 10.0 billion in medium/long-term debt.

    At end of April 2025, the parent company’s 2025 funding programme is 54% complete for vanilla notes.

    The Group is rated by four rating agencies: (i) FitchRatings – long-term rating “A-”, stable outlook, senior preferred debt rating “A”, short-term rating “F1”; (ii) Moody’s – long-term rating (senior preferred debt) “A1”, negative outlook, short-term rating “P-1”; (iii) R&I – long-term rating (senior preferred debt) “A”, stable outlook; and (iv) S&P Global Ratings – long-term rating (senior preferred debt) “A”, stable outlook, short-term rating “A-1”.

    1. FRENCH RETAIL, PRIVATE BANKING AND INSURANCE
    In EURm Q1 25 Q1 24 Change
    Net banking income 2,299 2,016 +14.1% +16.5%*
    Of which net interest income 1,061 827 +28.4% +31.6%*
    Of which fees 1,056 1,018 +3.7% +6.2%*
    Operating expenses (1,566) (1,728) -9.4% -6.6%*
    Gross operating income 734 288 x 2.5 x 2.5*
    Net cost of risk (171) (247) -30.8% -30.8%*
    Operating income 563 41 x 13.7 x 11.2*
    Net profits or losses from other assets 7 0 x 19.2 x 19.2*
    Group net income 421 31 x 13.4 x 10.9*
    Cost to income 68.1% 85.7%    

    Commercial activity

    SG network, Private Banking and Insurance 

    The SG network’s average deposit outstandings amounted to EUR 230 billion in Q1 25, down -1% from Q1 24, with a shift of inflows into savings life insurance.

    The SG network’s average loan outstandings contracted by -3% vs. Q1 24 to EUR 193 billion, and
    by -1.8% vs. Q1 24 excluding repayments of state-guaranteed loans. Mortgage loan production saw a sharp increase of +115% vs. Q1 24.

    The average loan-to-deposit ratio stood at 83.8% in Q1 25, down 1.1 percentage point relative to Q1 24.

    In Private Banking, assets under management9 strongly rose by +6% vs. Q1 24 at EUR 130 billion. Net asset inflows totalled EUR 2 billion in Q1 25, with asset gathering (annualised net new money divided by AuM) standing at +6% in Q1 25. Net banking income came to EUR 361 million for the quarter, a +3.4% increase at constant perimeter1 and exchange rates, down -3.9% vs. Q1 24.

    Insurance, which covers activities in and outside France, posted a very strong commercial performance. Life insurance outstandings increased sharply by +5% vs. Q1 24 to reach a record EUR 148 billion at end- March 2025. The share of unit-linked products remained high at 40%. Gross life insurance savings inflows amounted to EUR 5.4 billion in Q1 25.

    In France, personal protection and Property & Casualty premia were up by +4% vs. Q1 24.

    BoursoBank 

    BoursoBank reached almost 7.6 million clients in Q1 25. The bank recorded growth of +20.7% in the number of clients vs. Q1 24 (+1.3 million year-on-year), with onboarding still high this quarter (~458,000 new clients in Q1 25) while the churn rate remained low.

    BoursoBank has once again confirmed its leading position in France in terms of client satisfaction with an NPS (Net Promoter Score) of +5410. The online bank is also ranked as the best digital bank in France11.

    Average loan outstandings rose by +7.3% compared with Q1 24 to EUR 16 billion in Q1 25.

    Average outstanding savings, including deposits and financial savings, totalled EUR 67 billion, an increase of +15.5% vs. Q1 24. Deposits outstanding totalled EUR 41 billion in Q1 25, posting another sharp increase of +16.3% vs. Q1 24. Average life insurance outstandings, at EUR 13 billion in Q1 25, rose by +8.9% vs. Q1 24 (of which 49.2% in unit-linked products). This activity continued to register strong gross inflows over the quarter (+24.6% vs. Q1 24, 57% in unit-linked products). The brokerage activity recorded more than 3 million transactions in Q1 25, a record quarter with an increase of +48.4%
    vs. Q1 24.

    Net banking income

    In Q1 25, revenues came to EUR 2,299 million (including PEL/CEL provision), up +14.1% vs. Q1 24. Net interest income grew by +28.4% vs. Q1 24 and was broadly stable excluding asset disposals and the impact of short-term hedges in Q1 24. Fee income rose by +3.7% relative to Q1 24.

    Operating expenses

    Operating expenses came to EUR 1,566 million for the quarter, including around EUR 23 million euros of transformation charges, down -9.4% vs. Q1 24. The cost-to-income ratio stood at 68.1% in Q1 25, an improvement of 17.6 percentage points vs. Q1 24.

    Cost of risk

    In Q1 25, the cost of risk amounted to EUR 171 million, or 29 basis points, which was higher than in Q4 24 (20 basis points).

    Group net Income

    Group net income totalled EUR 421 million for the quarter. RONE stood at 9.5% in Q1 25.

    1. GLOBAL BANKING AND INVESTOR SOLUTIONS
    In EUR m Q1 25 Q1 24 Change
    Net banking income 2,896 2,631 +10.0% +8.8%*
    Operating expenses (1,755) (1,757) -0.1% -0.6%*
    Gross operating income 1,140 874 +30.4% +27.6%*
    Net cost of risk (55) 20 n/s n/s
    Operating income 1,085 894 +21.3% +18.9%*
    Group net income 856 697 +22.8% +19.6%*
    Cost to income 60.6% 66.8% 0 +0.0%*

    Net banking income

    Global Banking and Investor Solutions reported strong results in Q1 25, with revenues up +10.0% vs. Q1 24 to stand at EUR 2,896 million.

    Global Markets and Investor Services recorded solid growth of +10.0% over the quarter compared with Q1 24, at EUR 1,922 million.

    Market Activities grew in the first quarter with revenues of EUR 1,759 million, up +10.9% vs. Q1 24 in a volatile market environment.

    The Equities business delivered a record performance12 in Q1 25 with revenues of EUR 1,061 million, a sharp increase of +21.8% compared with Q1 24, driven by positive momentum particularly in flow and listed products.

    Fixed Income and Currencies were slightly down -2.4% to EUR 698 million in Q1 25, due to lower client activity on rates investment solutions and margin compression in financing activities. Commercial momentum also remained strong in flow activities, particularly for rates and forex products, driven by higher volatility.

    In Securities Services, revenues were up +1.4% compared with Q1 24 at EUR 163 million and overall stable (-0.2%) excluding participation. The level of fees is good in comparison to a high Q1 24, notably thanks to a strong commercial performance in fund distribution. Assets under Custody and Assets under Administration amounted to EUR 5,194 billion and EUR 637 billion, respectively.

    Revenues for the Financing and Advisory business totalled EUR 973 million, a sharp increase of +10.0% vs. Q1 24.

    Global Banking & Advisory posted significant revenues, up +10.5% compared with Q1 24, driven by buoyant activity in asset finance. Asset-Backed Products are steady despite less conducive market conditions compared to Q1 24. Furthermore, the performance was resilient in Mergers and Acquisitions (M&A) and Debt Capital Markets (DCM).

    Global Transaction & Payment Services once again delivered a strong performance compared with Q1 24, with a sharp increase in revenues of +8.7%, notably due to higher payment volumes with institutional clients and good commercial performance on the corporate franchise.

    Operating expenses

    Operating expenses came to EUR 1,755 million for the quarter and included around EUR 12 million in transformation charges. These are stable relative to Q1 24. The cost-to-income ratio stood at 60.6% in Q1 25.

    Cost of risk

    Over the quarter, the cost of risk was EUR 55 million, or 13 basis points vs. -5 basis points in Q1 24.

    Group net Income

    Group net income increased by +22.8% vs. Q1 24 to EUR 856 million.

    Global Banking and Investor Solutions reported a strong RONE of 18.7% for the quarter.

    1. MOBILITY, INTERNATIONAL RETAIL BANKING AND FINANCIAL SERVICES
    In EURm Q1 25 Q1 24 Change
    Net banking income 2,000 2,161 -7.4% +1.1%*
    Operating expenses (1,180) (1,350) -12.6% -4.8%*
    Gross operating income 820 810 +1.2% +10.8%*
    Net cost of risk (124) (182) -31.8% -23.1%*
    Operating income 696 629 +10.7% +20.3%*
    Net profits or losses from other assets 0 4 -98.3% -98.3%*
    Non-controlling interests 212 195 +8.3% +16.1%*
    Group net income 319 278 +14.5% +24.4%*
    Cost to income 59.0% 62.5%    

    Commercial activity

    International Retail Banking

    International Retail Banking posted robust commercial activity with loan outstandings of
    EUR 61 billion, up +4.3%* vs. Q1 24, and deposits of EUR 75 billion, slightly up +1.1%* vs. Q1 24.

    In Europe, loan outstandings rose by 6.1%* vs. Q1 24 to EUR 45 billion in Q1 25 for both client segments of KB and BRD, particularly in home loans. Deposit outstandings totalled EUR 55 billion in
    Q1 25, slightly up +0.6%* vs. Q1 24, mainly driven by Romania.

    Overall, loan outstandings in Africa, Mediterranean Basin and French Overseas Territories amounted to EUR 16 billion, broadly stable* vs. Q1 24, with mixed situations across geographies. Deposit outstandings increased by +2.5%* vs. Q1 24 to EUR 20 billion in Q1 25, mainly driven by sight deposits from corporate clients.

    Mobility and Financial Services

    Overall, Mobility and Financial Services maintained a good commercial performance.

    Ayvens’ earning assets totalled EUR 53.5 billion at end-March 2025, a +1.4% increase vs. end-March 2024.

    Consumer Finance posted loans outstanding of EUR 23 billion, still down -3.0% vs. Q1 24, but decreasing at a slower pace than previously.

    Net banking income

    In Q1 25, Mobility, International Retail Banking and Financial Services recorded revenues of EUR 2,000 million, up slightly (+1.1%* vs. Q1 24).

    International Retail Banking revenues increased slightly by +1.9%* vs. Q1 24, to EUR 913 million in
    Q1 25.

    Revenues in Europe increased by +5.4%* vs. Q1 24, to EUR 520 million in Q1 25. This robust growth, both in the Czech Republic and Romania, was driven by a solid performance of net interest income and a sharp increase in fees.

    In Africa, Mediterranean Basin and French Overseas Territories, revenues remained high at
    EUR 393 million in Q1 25, a slight down -2.3%* compared with a strong first quarter of 2024.

    Overall, revenues from Mobility and Financial Services were stable* vs. Q1 24, to EUR 1,087 million in Q1 25.

    At Ayvens, net banking income stood at EUR 796 million in Q1 25, stable vs. Q1 24, with an increase in margins13. Margins are continuing to improve, standing at 562 basis points in Q1 25, vs. 522 basis points in Q1 24. The secondary market for vehicle sales is gradually returning to normal, as expected, with an average profit margin per vehicle of EUR 1,22914 per unit this quarter, vs. EUR 1,2672 in Q4 24 and
    EUR 1,6611 in Q1 24. At its level, Ayvens has a cost-to-income ratio of 58.0%15, in line with the 2025 target (57%-59%).

    Revenues for the Consumer Finance business stabilised vs. Q1 24 at EUR 223 million in Q1 25.

    Operating expenses

    Over the quarter, operating expenses decreased significantly by -4.8%* vs. Q1 24, to EUR 1,180 million in Q1 25 (of which EUR 39 million of transformation charges). The cost-to-income ratio improved in Q1 25 to 59.0% vs. 62.5% in Q1 24.

    International Retail Banking posted costs of EUR 546 million in Q1 25, down by -3.2%* vs. Q1 24.

    Mobility and Financial Services costs reached EUR 635 million in Q1 25, a sharp decrease of -6.1%*
    vs. Q1 24, with cost synergies materialising at Ayvens driven by the continued LeasePlan integration.

    Cost of risk

    Over the quarter, the cost of risk amounted to EUR 124 million or 31 basis points, which was considerably lower than in Q1 24 (43 basis points).

    Group net Income

    Over the quarter, Group net income came to EUR 319 million, up +24.4%* vs. Q1 24. RONE stood at 11.2% in Q1 25. RONE was 14.1% in International Retail Banking and 9.4% in Mobility and Financial Services in Q1 25.

    1. CORPORATE CENTRE
    In EURm Q1 25 Q1 24
    Net banking income (112) (162)
    Operating expenses (103) (145)
    Gross operating income (215) (308)
    Net cost of risk 6 9
    Net profits or losses from other assets 192 (84)
    Income tax 61 90
    Group net income 12 (327)

    The Corporate Centre includes:

    • the property management of the Group’s head office,
    • the Group’s equity portfolio,
    • the Treasury function for the Group,
    • certain costs related to cross-functional projects, as well as several costs incurred by the Group that are not re-invoiced to the businesses.

    Net banking income

    The Corporate Centre’s net banking income totalled EUR -112 million for the quarter, vs. EUR – 162 million in Q1 24, notably thanks to management actions to more efficiently use excess liquidity.

    Operating expenses

    Over the quarter, operating expenses totalled EUR -103 million, vs. EUR -145 million in Q1 24, notably thanks to a decrease in transformation charges.

    Net profits from other assets

    The Group recorded EUR +192 million in net profits from other assets during the quarter at the Corporate Centre level, notably following asset disposals of SGEF16, Societe Generale Private Banking Suisse and SG Kleinwort Hambros.

    Group net Income

    The Corporate Centre’s net income totalled EUR +12 million for the quarter, vs. EUR -327 million
    in Q1 24.

    1. 2025 FINANCIAL CALENDAR
    2025 Financial communication calendar
    May 20th, 2025 Combined General Meeting
    May 26th, 2025 Dividend detachment
    May 28th, 2025 Dividend payment
    July 31st, 2025 Second quarter and first half 2025 results
    October 30th, 2025 Third quarter and nine months 2025 results
    The Alternative Performance Measures, notably the notions of net banking income for the pillars, operating expenses, cost of risk in basis points, ROE, ROTE, RONE, net assets and tangible net assets are presented in the methodology notes, as are the principles for the presentation of prudential ratios.

    This document contains forward-looking statements relating to the targets and strategies of the Societe Generale Group.

    These forward-looking statements are based on a series of assumptions, both general and specific, in particular the application of accounting principles and methods in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union, as well as the application of existing prudential regulations.

    These forward-looking statements have also been developed from scenarios based on a number of economic assumptions in the context of a given competitive and regulatory environment. The Group may be unable to:

    – anticipate all the risks, uncertainties or other factors likely to affect its business and to appraise their potential consequences;

    – evaluate the extent to which the occurrence of a risk or a combination of risks could cause actual results to differ materially from those provided in this document and the related presentation.

    Therefore, although Societe Generale believes that these statements are based on reasonable assumptions, these forward-looking statements are subject to numerous risks and uncertainties, including matters not yet known to it or its management or not currently considered material, and there can be no assurance that anticipated events will occur or that the objectives set out will actually be achieved. Important factors that could cause actual results to differ materially from the results anticipated in the forward-looking statements include, among others, overall trends in general economic activity and in Societe Generale’s markets in particular, regulatory and prudential changes, and the success of Societe Generale’s strategic, operating and financial initiatives.

    More detailed information on the potential risks that could affect Societe Generale’s financial results can be found in the section “Risk Factors” in our Universal Registration Document filed with the French Autorité des Marchés Financiers (which is available on https://investors.societegenerale.com/en).

    Investors are advised to take into account factors of uncertainty and risk likely to impact the operations of the Group when considering the information contained in such forward-looking statements. Other than as required by applicable law, Societe Generale does not undertake any obligation to update or revise any forward-looking information or statements. Unless otherwise specified, the sources for the business rankings and market positions are internal.
    1. APPENDIX 1: FINANCIAL DATA

    GROUP NET INCOME BY CORE BUSINESS

    In EURm Q1 25 Q1 24 Variation
    French Retail, Private Banking and Insurance 421 31 x 13.4
    Global Banking and Investor Solutions 856 697 +22.8%
    Mobility, International Retail Banking & Financial Services 319 278 +14.5%
    Core Businesses 1,596 1,007 +58.5%
    Corporate Centre 12 (327) n/s
    Group 1,608 680 x 2.4

    MAIN EXCEPTIONAL ITEMS

    In EURm Q1 25 Q1 24
    Operating expenses – Total one-off items and transformation charges (74) (352)
    Transformation charges (74) (352)
    Of which French Retail, Private Banking and Insurance (23) (81)
    Of which Global Banking & Investor Solutions (12) (154)
    Of which Mobility, International Retail Banking & Financial Services (39) (69)
    Of which Corporate Centre 0 (47)
         
    Other one-off items – Total 202 (80)
    Net profits or losses from other assets 202 (80)

    CONSOLIDATED BALANCE SHEET

    In EUR m   31/03/2025 31/12/2024
    Cash, due from central banks   169,891 201,680
    Financial assets at fair value through profit or loss   548,999 526,048
    Hedging derivatives   8,171 9,233
    Financial assets at fair value through other comprehensive income   99,248 96,024
    Securities at amortised cost   41,224 32,655
    Due from banks at amortised cost   91,527 84,051
    Customer loans at amortised cost   447,815 454,622
    Revaluation differences on portfolios hedged against interest rate risk   (480) (292)
    Insurance and reinsurance contracts assets   545 615
    Tax assets   4,170 4,687
    Other assets   73,618 70,903
    Non-current assets held for sale   2,911 26,426
    Investments accounted for using the equity method   414 398
    Tangible and intangible fixed assets   61,250 61,409
    Goodwill   5,085 5,086
    Total   1,554,388 1,573,545
    In EUR m   31/03/2025 31/12/2024
    Due to central banks   10,661 11,364
    Financial liabilities at fair value through profit or loss   405,056 396,614
    Hedging derivatives   14,028 15,750
    Debt securities issued   154,356 162,200
    Due to banks   100,825 99,744
    Customer deposits   521,141 531,675
    Revaluation differences on portfolios hedged

    against interest rate risk

    		   (6,168) (5,277)
    Tax liabilities   2,301 2,237
    Other liabilities   96,417 90,786
    Non-current liabilities held for sale   2,560 17,079
    Insurance and reinsurance contracts liabilities   152,899 150,691
    Provisions   4,098 4,085
    Subordinated debts   16,148 17,009
    Total liabilities   1,474,322 1,493,957
    Shareholder’s equity   – –
    Shareholders’ equity, Group share   – –
    Issued common stocks and capital reserves   20,812 21,281
    Other equity instruments   9,873 9,873
    Retained earnings   37,863 33,863
    Net income   1,608 4,200
    Sub-total   70,156 69,217
    Unrealised or deferred capital gains and losses   400 1,039
    Sub-total equity, Group share   70,556 70,256
    Non-controlling interests   9,510 9,332
    Total equity   80,066 79,588
    Total   1,554,388 1,573,545
    1. APPENDIX 2: METHODOLOGY

    1 –The financial information presented for the first quarter 2025 was examined by the Board of Directors on April 29th, 2025 and has been prepared in accordance with IFRS as adopted in the European Union and applicable at that date. The information has not been audited.

    2 – Net banking income

    The pillars’ net banking income is defined on page 38 of Societe Generale’s 2025 Universal Registration Document. The terms “Revenues” or “Net Banking Income” are used interchangeably. They provide a normalised measure of each pillar’s net banking income taking into account the normative capital mobilised for its activity.

    3 – Operating expenses

    Operating expenses correspond to the “Operating Expenses” as presented in note 5 to the Group’s consolidated financial statements as at December 31st, 2024. The term “costs” is also used to refer to Operating Expenses. The Cost/Income Ratio is defined on page 38 of Societe Generale’s 2025 Universal Registration Document.

    4 – Cost of risk in basis points, coverage ratio for doubtful outstandings

    The cost of risk is defined on pages 39 and 748 of Societe Generale’s 2025 Universal Registration Document. This indicator makes it possible to assess the level of risk of each of the pillars as a percentage of balance sheet loan commitments, including operating leases.

    In EURm   Q1 25 Q1 24
    French Retail, Private Banking and Insurance Net Cost Of Risk 171 247
    Gross loan Outstandings 233,536 238,394
    Cost of Risk in bps 29 41
    Global Banking and Investor Solutions Net Cost Of Risk 55 (20)
    Gross loan Outstandings 172,782 162,457
    Cost of Risk in bps 13 (5)
    Mobility, International Retail Banking & Financial Services Net Cost Of Risk 124 182
    Gross loan Outstandings 159,126 167,892
    Cost of Risk in bps 31 43
    Corporate Centre Net Cost Of Risk (6) (9)
    Gross loan Outstandings 25,592 23,365
    Cost of Risk in bps (9) (15)
    Societe Generale Group Net Cost Of Risk 344 400
    Gross loan Outstandings 591,036 592,108
    Cost of Risk in bps 23 27

    The gross coverage ratio for doubtful outstandings is calculated as the ratio of provisions recognised in respect of the credit risk to gross outstandings identified as in default within the meaning of the regulations, without taking account of any guarantees provided. This coverage ratio measures the maximum residual risk associated with outstandings in default (“doubtful”).

    5 – ROE, ROTE, RONE

    The notions of ROE (Return on Equity) and ROTE (Return on Tangible Equity), as well as their calculation methodology, are specified on pages 39 and 40 of Societe Generale’s 2025 Universal Registration Document. This measure makes it possible to assess Societe Generale’s return on equity and return on tangible equity.
    RONE (Return on Normative Equity) determines the return on average normative equity allocated to the Group’s businesses, according to the principles presented on page 40 of Societe Generale’s 2025 Universal Registration Document. Starting from Q1 25 results, normative return to businesses is based on a 13% capital allocation. The Q1 25 allocated capital includes the regulatory impacts related to Basel IV, applicable since 1 January 2025.
    Group net income used for the ratio numerator is the accounting Group net income adjusted for “Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation”. For ROTE, income is also restated for goodwill impairment.
    Details of the corrections made to the accounting equity in order to calculate ROE and ROTE for the period are given in the table below:

    ROTE calculation: calculation methodology

    End of period (in EURm) Q1 25 Q1 24
    Shareholders’ equity Group share 70,556 67,342
    Deeply subordinated and undated subordinated notes (10,153) (10,166)
    Interest payable to holders of deeply & undated subordinated notes, issue premium amortisation(1) (60) (71)
    OCI excluding conversion reserves 582 696
    Distribution provision(2) (710) (256)
    Distribution N-1 to be paid (1,718) (999)
    ROE equity end-of-period 58,496 56,545
    Average ROE equity 58,609 56,522
    Average Goodwill(3) (4,191) (4,006)
    Average Intangible Assets (2,835) (2,956)
    Average ROTE equity 51,583 49,560
         
    Group net Income 1,608 680
    Interest paid and payable to holders of deeply subordinated notes and undated subordinated notes, issue premium amortisation (188) (166)
    Adjusted Group net Income 1,420 514
    ROTE 11.0% 4.1%

    171819

    RONE calculation: Average capital allocated to Core Businesses (in EURm)

    In EURm Q1 25 Q1 24 Change
    French Retail, Private Banking and Insurance 17,687 16,518 +7.1%
    Global Banking and Investor Solutions 18,324 16,011 +14.4%
    Mobility, International Retail Banking & Financial Services 11,376 11,252 +1.1%
    Core Businesses 47,386 43,781 +8.2%
    Corporate Centre 11,223 12,741 -11.9%
    Group 58,609 56,522 +3.7%

    6 – Net assets and tangible net assets

    Net assets and tangible net assets are defined in the methodology, page 41 of the Group’s 2025 Universal Registration Document. The items used to calculate them are presented below:
    2021

    End of period (in EURm) Q1 25 2024 2023
    Shareholders’ equity Group share 70,556 70,256 65,975
    Deeply subordinated and undated subordinated notes (10,153) (10,526) (9,095)
    Interest of deeply & undated subordinated notes, issue premium amortisation(1) (60) (25) (21)
    Book value of own shares in trading portfolio (44) 8 36
    Net Asset Value 60,299 59,713 56,895
    Goodwill(2) (4,175) (4,207) (4,008)
    Intangible Assets (2,798) (2,871) (2,954)
    Net Tangible Asset Value 53,326 52,635 49,933
           
    Number of shares used to calculate NAPS(3) 783,671 796,498 796,244
    Net Asset Value per Share 76.9 75.0 71.5
    Net Tangible Asset Value per Share 68.0 66.1 62.7

    7 – Calculation of Earnings Per Share (EPS)

    The EPS published by Societe Generale is calculated according to the rules defined by the IAS 33 standard (see pages 40-41 of Societe Generale’s 2025 Universal Registration Document). The corrections made to Group net income in order to calculate EPS correspond to the restatements carried out for the calculation of ROE and ROTE.
    The calculation of Earnings Per Share is described in the following table:

    Average number of shares (thousands) Q1 25 2024 2023
    Existing shares 800,317 801,915 818,008
    Deductions      
    Shares allocated to cover stock option plans and free shares awarded to staff 2,586 4,402 6,802
    Other own shares and treasury shares 7,646 2,344 11,891
    Number of shares used to calculate EPS(4) 790,085 795,169 799,315
    Group net Income (in EUR m) 1,608 4,200 2,493
    Interest on deeply subordinated notes and undated subordinated notes (in EUR m) (188) (720) (759)
    Adjusted Group net income (in EUR m) 1,420 3,481 1,735
    EPS (in EUR) 1.80 4.38 2.17

    2223
    8 – Solvency and leverage ratios

    Shareholder’s equity, risk-weighted assets and leverage exposure are calculated in accordance with applicable CRR3/CRD6 rules, including the procedures provided by the regulation for the calculation of phased-in and fully loaded ratios. The solvency ratios and leverage ratio are presented on a pro-forma basis for the current year’s accrued results, net of dividends, unless otherwise stated.

    9 – Funded balance sheet, loan to deposit ratio

    The funded balance sheet is based on the Group financial statements. It is obtained in two steps:

    • A first step aiming at reclassifying the items of the financial statements into aggregates allowing for a more economic reading of the balance sheet. Main reclassifications:

    Insurance: grouping of the accounting items related to insurance within a single aggregate in both assets and liabilities.
    Customer loans: include outstanding loans with customers (net of provisions and write-downs, including net lease financing outstanding and transactions at fair value through profit and loss); excludes financial assets reclassified under loans and receivables in accordance with the conditions stipulated by IFRS 9 (these positions have been reclassified in their original lines).
    Wholesale funding: includes interbank liabilities and debt securities issued. Financing transactions have been allocated to medium/long-term resources and short-term resources based on the maturity of outstanding, more or less than one year.
    Reclassification under customer deposits of the share of issues placed by French Retail Banking networks (recorded in medium/long-term financing), and certain transactions carried out with counterparties equivalent to customer deposits (previously included in short term financing).
    Deduction from customer deposits and reintegration into short-term financing of certain transactions equivalent to market resources.

    • A second step aiming at excluding the contribution of insurance subsidiaries, and netting derivatives, repurchase agreements, securities borrowing/lending, accruals and “due to central banks”.

    The Group loan/deposit ratio is determined as the division of the customer loans by customer deposits as presented in the funded balance sheet.

    NB (1) The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding rules.
    (2) All the information on the results for the period (notably: press release, downloadable data, presentation slides and supplement) is available on Societe Generale’s website www.societegenerale.com in the “Investor” section.

    Societe Generale

    Societe Generale is a top tier European Bank with around 119,000 employees serving more than 26 million clients in 62 countries across the world. We have been supporting the development of our economies for 160 years, providing our corporate, institutional, and individual clients with a wide array of value-added advisory and financial solutions. Our long-lasting and trusted relationships with the clients, our cutting-edge expertise, our unique innovation, our ESG capabilities and leading franchises are part of our DNA and serve our most essential objective – to deliver sustainable value creation for all our stakeholders.

    The Group runs three complementary sets of businesses, embedding ESG offerings for all its clients:

    • French Retail, Private Banking and Insurance, with leading retail bank SG and insurance franchise, premium private banking services, and the leading digital bank BoursoBank.
    • Global Banking and Investor Solutions, a top tier wholesale bank offering tailored-made solutions with distinctive global leadership in equity derivatives, structured finance and ESG.
    • Mobility, International Retail Banking and Financial Services, comprising well-established universal banks (in Czech Republic, Romania and several African countries), Ayvens (the new ALD I LeasePlan brand), a global player in sustainable mobility, as well as specialized financing activities.

    Committed to building together with its clients a better and sustainable future, Societe Generale aims to be a leading partner in the environmental transition and sustainability overall. The Group is included in the principal socially responsible investment indices: DJSI (Europe), FTSE4Good (Global and Europe), Bloomberg Gender-Equality Index, Refinitiv Diversity and Inclusion Index, Euronext Vigeo (Europe and Eurozone), STOXX Global ESG Leaders indexes, and the MSCI Low Carbon Leaders Index (World and Europe).

    In case of doubt regarding the authenticity of this press release, please go to the end of the Group News page on societegenerale.com website where official Press Releases sent by Societe Generale can be certified using blockchain technology. A link will allow you to check the document’s legitimacy directly on the web page.

    For more information, you can follow us on Twitter/X @societegenerale or visit our website societegenerale.com.

    1 Including Basel IV phasing
    2 Based on a pay-out ratio of 50% of the Group net income restated from non-cash items and after deduction of interest on deeply subordinated notes and undated subordinated notes, pro forma including Q1 25 results
    3 At comparable business model post GFC (Global Financial Crisis) regulatory regime
    4 Ratio calculated according to EBA methodology published on 16 July 2019
    5 Ratio excluding loans outstanding of companies currently being disposed of in compliance with IFRS 5
    6 Ratio of S3 provisions, guarantees and collaterals over gross outstanding non-performing loans
    7 Except for operations in the Czech Republic and Slovakia
    8 Including Basel IV phasing and pro forma Q1 25 results
    NB: SG network, Private Banking and Insurance – end Q1 25 loans and deposits exclude disposals
    9 Excluding asset disposals in Switzerland and the United Kingdom
    10 Jointly with another bank in 2025, Bain and Company, April 2025
    11 Deloitte, January 2025
    12 At comparable business model post GFC (Global Financial Crisis) regulatory regime
    13 Excluding non-recurring items
    14 Excluding impacts of depreciation adjustments
    15 As communicated by Ayvens in its Q1 25 results (excluding used car sales result and non-recurring items)
    16 Except for operations in the Czech Republic and Slovakia
    17 Interest net of tax
    18 The distribution provision is calculated based on a pay-out ratio of 50%, restated from non-cash items and after deduction of interest on deeply subordinated notes and on undated subordinated notes
    19 Excluding goodwill arising from non-controlling interests
    20 Interest net of tax
    21 Excluding goodwill arising from non-controlling interests
    22 The number of shares considered is the number of ordinary shares outstanding at end of period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousands of shares)
    23 The number of shares considered is the average number of ordinary shares outstanding during the period, excluding treasury shares and buybacks, but including the trading shares held by the Group (expressed in thousands of shares)

    Attachment

    The MIL Network –

  • MIL-OSI: GBank Financial Holdings Inc. Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LAS VEGAS, April 29, 2025 (GLOBE NEWSWIRE) — GBank Financial Holdings Inc. (the “Company”) (OTCQX: GBFH), the parent company of GBank (the “Bank”), today reported net income for the quarter ended March 31, 2025 of $4.5 million, or $0.31 per diluted share, compared to $5.2 million, or $0.37 per diluted share during the fourth quarter of 2024, and $3.7 million, or $0.29 per diluted share, for the first quarter of 2024.

    First Quarter 2025 Financial Highlights (Unaudited)

    • Net income of $4.5 million and diluted earnings per share of $0.31
    • Net revenue(1)of $17.4 million, an increase of 31.4% compared to the first quarter of 2024
    • SBA Lending and Commercial Banking loan originations of $133.0 million, compared to $136.6 million for the first quarter of 2024
    • Gain on sale of loans of $2.5 million on loans sold of $68.7 million, compared to gain on sale of loans of $2.1 million on loans sold of $68.6 million for the first quarter of 2024
    • Credit card charge transactions of $105.6 million and net interchange fees of $2.0 million, compared to $1.1 million and $20 thousand, respectively, for the first quarter of 2024
    • Non-interest expenses include legal, professional, and audit fees from registration on Forms S-1 and S-1A, which total approximately $1.1 million to date
    • Net interest margin of 4.47%
    • Total deposit growth of $189.0 million, or 23.4% compared to March 31, 2024
    • Total on-balance sheet guaranteed loans of $245.6 million, compared to $263.5 million as of March 31, 2024
    • Non-performing assets, excluding guaranteed portions, of $5.7 million, representing 0.48% of total assets

    Edward M. Nigro, Executive Chairman, stated, “While quarterly net revenues(1) increased 31% over the first quarter of 2024, our first quarter noninterest income, driven by the increased monetization of Gaming FinTech operations, increased 51% year-over-year with noninterest revenue exceeding $5 million. And in just these last two weeks, GBFH received SEC approval of its S-1 filing and was approved to commence trading on NASDAQ – we have been busy.”

    Registration Statement on Form S-1

    On April 16, 2025, the Company announced that the U.S. Securities and Exchange Commission declared effective the Company’s Registration Statement on Form S-1 (the “Form S-1”) related to registration and resale of 1,081,081 shares of common stock, currently held by existing stockholders and issued in the Company’s Private Placement Offering (the “Offering”) which closed on October 11, 2024.

    The Company is not currently offering or selling new shares of common stock, and there will be no change to the issued and outstanding number of shares of common stock of the Company in connection with the Form S-1. Copies of the prospectus included in the Registration Statement may be obtained from the Company by request or by visiting
    https://www.sec.gov/Archives/edgar/data/1791145/000147793225002363/gbfh_s1.htm.

    Financial Results

    Income Statement

    Net interest income totaled $11.9 million for the first quarter of 2025, reflecting an increase of $105 thousand, or 0.9%, compared to $11.8 million for the fourth quarter of 2024, and an increase of $1.1 million, or 10.1%, compared to the first quarter of 2024.

    The increase in net interest income from the fourth quarter was driven by a favorable reduction in the cost of deposits, partially offset by lower interest income on loans. The favorable decrease in the cost of deposits of $305 thousand was the result of (i) the redemption of $20 million of certain higher-cost callable brokered deposits during the quarter having a weighted-average interest rate of 4.95%, (ii) rate decreases on interest-bearing deposits resulting from the 50 basis point decrease in the federal funds rate enacted during the fourth quarter 2024 by the Federal Open Market Committee (“FOMC”), and (iii) the non-recurring effect of accelerated recognition of certain premiums on brokered certificates of deposits during the fourth quarter of 2024 totaling $170 thousand. The favorable decrease in the cost of deposits was partially offset by a decrease in interest income on loans of $395 thousand primarily due to the full-quarter impact of the previously mentioned 50 basis point decrease in the federal funds rate on the Bank’s variable rate loan portfolio. Interest income for the first quarter of 2025 reflects the net effect of the reversal of $100 thousand of interest accruals, deferred fees, and deferred costs attributable to $2.8 million of commercial loans placed on nonaccrual status during the first quarter of 2025. Comparatively, the fourth quarter of 2024 reflects the net effect of the reversal of $342 thousand of interest accruals, deferred fees, and deferred costs attributable to $12.4 million of commercial loans placed on nonaccrual status.

    The increase in net interest income when compared to the first quarter of 2024 was primarily volume driven, as higher interest income from growth in average loan and interest-bearing cash balances more than offset increases in interest expense resulting from higher average balances of interest-bearing deposits.

    Investment securities yield was 4.94% for the first quarter of 2025, compared to 4.74% for the fourth quarter of 2024 and 4.16% for the first quarter of 2024. The increase in investment securities yield when compared to the previous linked quarter and to the same quarter of 2024 was driven by the purchase of $72.9 million of investment securities over the previous twelve months to replace certain lower-yielding U.S. Treasury securities that matured during 2024.

    The Company’s net interest margin for the first quarter of 2025 decreased to 4.47%, compared to 4.53% for the fourth quarter of 2024 and 4.85% for the first quarter of 2024. The decrease in net interest margin when compared to the fourth and first quarters of 2024 is reflective of the full-quarter impact of the 50 basis point decrease in the federal funds rate enacted in during the fourth quarter of 2024 by the FOMC on variable rate loans, investment securities, and interest bearing cash balances and interest income reversals relating to loans placed on nonaccrual status during the quarter.

    The Company recorded a provision for credit losses on loans of $710 thousand for the first quarter of 2025, a decrease of $627 thousand compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. The provision for credit losses on loans recorded in the first quarter of 2025 reflects quarterly growth in non-guaranteed loans of $24.4 million.

    Non-interest income was $5.5 million for the first quarter of 2025, compared to $5.8 million for the fourth quarter of 2024, and $2.4 million for the first quarter of 2024. The $301 thousand decrease in non-interest income when compared to the fourth quarter of 2024 was driven by a $1.5 million decrease in income from gain on sale of loans due to a decrease in average pretax gain on sale margin and lower sales volume quarter-over-quarter. The decrease in gain on sale of loans was partially offset by an increase in credit card net interchange fees of $1.1 million quarter-over-quarter due to increased credit card transaction volume. The $3.1 million increase in non-interest income when compared to the first quarter of 2024 was driven by (i) an increase in credit card net interchange fees of $2.0 million, (ii) a $643 thousand increase in loan servicing income as the first quarter of 2024 reflected the write-off of certain loan servicing assets totaling $401 thousand relating to the repurchase of the guaranteed portion of previously sold SBA loans, and (iii) a $454 thousand increase in income from gain on sale of loans.

    Net revenue(1) totaled $17.4 million for the first quarter of 2025, representing a decrease of $196 thousand, or 1.1%, compared to $17.6 million for the fourth quarter of 2024. Net revenue(1) for the first quarter of 2025 increased $4.2 million, or 31.4%, when compared to $13.2 million for the first quarter of 2024.

    Non-interest expense was $10.9 million during the first quarter of 2025, compared to $9.7 million for the fourth quarter of 2024 and $8.4 million for the first quarter of 2024. The Company’s efficiency ratio was 62.8%, compared to 55.4% for the fourth quarter of 2024 and 63.4% for the first quarter of 2024. The increase in non-interest expense from the fourth quarter of 2024 is primarily due to an increase of $587 thousand in employee compensation costs attributable to higher commission expenses related to loan production. The increase in non-interest expense also reflects extraordinary legal, professional, and audit fees incurred to date totaling $1.1 million associated with the preparation and filing of the registration statement with the Securities and Exchange Commission on Forms S-1 and S-1/A, approximately $786 thousand of these expenses were incurred during the first quarter of 2025. Additionally, data processing expenses increased $201 thousand when compared to the fourth quarter of 2024 related mainly to higher credit card volume. The increase in non-interest expense from the first quarter of 2024 was driven by a $1.1 million increase in employee compensation costs due to increased staffing levels, as well as a $1.5 million increase in other expenses due to the previously mentioned legal, professional, and audit fees associated with the registration statement filing and increases in data processing, supplies, and other non-interest expenses to support the growth of the organization.

    Income tax expense was $1.2 million for each of the quarters ended March 31, 2025 and December 31, 2024, and $1.1 million for the first quarter of 2024. The Company’s effective tax rate was 21.4% for the quarter ended March 31, 2025 compared to 19.1% for the quarter ended December 31, 2024 and 23.1% for the quarter ended March 31, 2024. The fluctuations in the effective tax rate are largely driven by the timing and volume of certain stock-based compensation transactions resulting in tax benefits to the Company, as well as the timing and volume of state tax adjustments.

    Net income was $4.5 million for the first quarter of 2025, a decrease of $774 thousand from $5.2 million for the fourth quarter of 2024, and an increase of $769 thousand from $3.7 million for the first quarter of 2024. Diluted earnings per share totaled $0.31 for the first quarter of 2025, compared to $0.37 for the fourth quarter of 2024 and $0.29 for the first quarter of 2024. Earnings per share and other share-based metrics have been impacted by the shares issued in the previously mentioned Offering.

    The Company had 175 full-time equivalent employees as of March 31, 2025, compared to 169 full-time equivalent employees as of December 31, 2024, and 150 full-time equivalent employees as of March 31, 2024.

    Balance Sheet

    Total loans, net of deferred fees and costs were $843.4 million as of March 31, 2025, compared to $816.0 million as of December 31, 2024, and $733.6 million as of March 31, 2024. Loans, net of deferred fees and costs increased $27.4 million during the first quarter of 2025 as increases in commercial real estate loans more than offset decreases in commercial and industrial and residential loans. The increase in loans, net of deferred fees and costs of $109.8 million from March 31, 2024 was primarily driven by increases of $97.7 million in commercial real estate loans. Total guaranteed loans as a percentage of loans(1) were 24.2% as of March 31, 2025, compared to 24.7% as of December 31, 2024, and 29.8% as of March 31, 2024.

    The Company’s allowance for credit losses totaled $9.0 million as of March 31, 2025, compared to $9.1 million as of December 31, 2024 and $7.1 million as of March 31, 2024. The allowance for credit losses as a percentage of total loans was 1.07% as of March 31, 2025, compared to 1.12% as of December 31, 2024, and 0.97% as of March 31, 2024. The allowance for loan losses as a percentage of total loans, excluding guaranteed portions(1), was 1.41% as of March 31, 2025, compared to 1.48% as of December 31, 2024, and 1.38% as of March 31, 2024.

    Deposits totaled $995.9 million as of March 31, 2025, an increase of $60.9 million from $935.1 million as of December 31, 2024, and an increase of $189.0 million from $806.9 million as of March 31, 2024. By deposit type, the increase from the prior quarter was driven by an increase of $40.7 million in certificates of deposit and a $23.3 million increase in savings and money market accounts. From March 31, 2024, certificates of deposit increased by $83.9 million, and savings and money market accounts increased by $80.5 million. Noninterest-bearing deposits totaled $242.7 million as of March 31, 2025, an increase of $3.0 million from $239.7 million as of December 31, 2024, and an increase of $26.3 million from $216.3 million as of March 31, 2024.

    The Company’s ratio of loans to deposits was 84.7% as of March 31, 2025, compared to 87.3% as of December 31, 2024, and 90.9% as of March 31, 2024.

    The Company held no short-term borrowings as of March 31, 2025 or December 31, 2024, compared to short term borrowings of $10.0 million as of March 31, 2024. As of March 31, 2025, the Company had approximately $488.3 million in available borrowing capacity from the Federal Reserve Bank, the Federal Home Loan Bank, and through its various Fed Funds lines.

    Subordinated notes totaled $26.1 million as of March 31, 2025 and December 31, 2024, compared to $26.0 million as of March 31, 2024.

    Stockholders’ equity was $146.6 million as of March 31, 2025, compared to $140.7 million as of December 31, 2024, and $102.6 million as of March 31, 2024. The increase in stockholders’ equity from December 31, 2024 is attributable to increases in retained earnings resulting from net income earned during the quarter. The increase in stockholders’ equity since March 31, 2024 was driven by the previously mentioned Offering, net income earned during the previous twelve months, as well as an increase in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BankCard Services, LLC (“BCS“) during the second quarter of 2024.

    The Company’s common equity to tangible assets ratio was 12.3% as of March 31, 2025, compared to 12.5% as of December 31, 2024, and 10.6% as of March 31, 2024. The Bank’s Tier 1 leverage ratio was 14.2% as of March 31, 2025, compared to 12.9% as of December 31, 2024, and 13.0% as of March 31, 2024. The increase in the Bank’s Tier 1 leverage ratio was the result of the downstream of $15.0 million in additional capital from the holding company to the Bank during the first quarter of 2025. The Company’s book value per share was $10.27 as of March 31, 2025, an increase of 4.1% from $9.87 as of December 31, 2024, and an increase of 28.4% from $8.00 as of March 31, 2024. The increase in tangible book value per share from December 31, 2024 is attributable to net income and increases in additional paid in capital resulting from certain stock-based compensation activity during the quarter. The increase since March 31, 2024 is attributable to net income, the Offering, and the increases in capital resulting from the issuance of non-voting common shares related to the Company’s investment in BCS during the second quarter of 2024.

    Total assets increased 6.0% to $1.190 billion as of March 31, 2025, from $1.122 billion as of December 31, 2024, and increased 23.5% from $963.4 million as of March 31, 2024. The increase in total assets from December 31, 2024 was primarily driven by increases in loans and interest-bearing deposits with banks. The increase in total assets from March 31, 2024 was primarily driven by increases in loans, interest bearing deposits with banks, and investment securities.

    Asset Quality

    The provision for credit losses on loans totaled $710 thousand for the first quarter of 2025, compared to $1.3 million for the fourth quarter of 2024. No provision for credit losses on loans was recorded during the first quarter of 2024. Net loan charge-offs in the first quarter of 2025 totaled $828 thousand, or 0.39% of average net loans (annualized), compared to net loan charge-offs of $157 thousand, or 0.07% of average net loans (annualized) in the fourth quarter of 2024 and no net loan charge-offs or recoveries during the first quarter of 2024.

    Nonaccrual loans increased $5.1 million during the quarter to $19.2 million as of March 31, 2025, and increased $13.1 million from $6.1 million as of March 31, 2024. Loans past due 90 days and accruing interest totaled $1.2 million as of March 31, 2025, compared to $40 thousand as of December 31, 2024, and $33 thousand as of March 31, 2024. The balance of loans past due 90 days and accruing of $1.2 million at March 31, 2025 was comprised of one commercial real estate loan totaling $1.1 million and certain credit card balances totaling $49 thousand.

    The Company held no other real estate owned as of March 31, 2025 or 2024, or December 31, 2024.

    Total non-performing assets totaled $20.4 million as of March 31, 2025, an increase of $6.2 million from $14.2 million as of December 31, 2024, and an increase of $14.2 million from $6.1 million as of March 31, 2024. Non-performing assets, excluding guaranteed portions, totaled $5.7 million as of March 31, 2025, an increase of $839 thousand from $4.8 million as of December 31, 2024 and an increase of $4.1 million from $1.6 million as of March 31, 2024.

    Loans past due between 30 and 89 days and accruing interest totaled $14.9 million as of March 31, 2025, an increase of $3.0 million from $11.8 million as of December 31, 2024, and an increase of $11.4 million from $3.4 million as of March 31, 2024. The guaranteed portion of loans past due between 30 and 89 days and accruing interest totaled $11.9 million as of March 31, 2025.

    The ratio of total non-performing assets to total assets was 1.71% as of March 31, 2025, compared to 1.26% as of December 31, 2024, and 0.64% as of March 31, 2024. The ratio of non-performing assets, excluding guaranteed portions, to total assets(1) was 0.48% as of March 31, 2025, compared to 0.43% as of December 31, 2024, and 0.16% as of March 31, 2024.

    Other Financial Highlights

    SBA Lending and Commercial Banking

    SBA Lending and Commercial Banking loan originations totaled $133.0 million for the first quarter of 2025, compared to $120.0 million for the fourth quarter of 2024 and $136.6 million for the first quarter of 2024. Loan sale volume decreased to $68.7 million during the first quarter of 2025, compared to $98.5 million for the fourth quarter of 2024, and increased slightly from $68.6 million during the first quarter of 2024. Gain on sale of loans decreased 36.5% to $2.5 million, compared to $4.0 million for the fourth quarter of 2024, and increased 21.8% from $2.1 million for the first quarter of 2024. The average pretax gain on sale of loans margin was 3.69% for the first quarter of 2025, compared to 4.06% for the fourth quarter of 2024 and 3.04% for the first quarter of 2024.

    Gaming FinTech

    GBank’s partner, BCS, has been actively developing its pipeline of Pooled Player and Pooled Consumer Accounts “Powered by PIMS and CIMS”™. BCS is currently onboarding three new programs. BCS is working with two gaming operators as a part of the latest Product Express partnership with MasterCard and i2c announced during the third quarter of 2024. One client is a cash access service provider in the casino industry and the other is a social gaming operator. Both are working to onboard their prepaid issuing program through this partnership. These programs are expected to be active early in the second quarter of 2025. BCS has executed an additional card issuing agreement with a client offering prepaid access services for cashless venues nationwide. This program went live in the first quarter of 2025. Additionally, the BoltBetz slot machine application is now expected to be fully live in the second quarter of 2025.

    BCS and GBank now have seventeen active payment and PPA/PCA clients. Currently, BCS and GBank are conducting due diligence for three new clients, with anticipated onboarding in future quarters. Gaming FinTech deposits averaged $37.1 million for the first quarter of 2025, compared to $30.5 million for the fourth quarter of 2024.

    The Bank launched its GBank Visa Signature® Card in the second quarter of 2023 for prime and super-prime consumers, offering one percent cash rewards on gaming transactions and two percent cash rewards on all other purchases.

    Credit card charge transactions were $105.6 million for the first quarter of 2025, compared to $51.7 million for the fourth quarter of 2024 and $1.1 million for the first quarter of 2024. Credit card balances were $2.3 million as of March 31, 2025, compared to $1.6 million as of December 31, 2024 and $542 thousand as of March 31, 2024. Through March 31, 2025, and since launch, the Bank has processed over $172 million in gaming transactions through its credit card product.

    GBank continues to develop and improve its operational credit card systems, including the internal implementation of application landing pages and internal customer service resources. These efforts are a continuation of the Company’s ongoing strategy to ultimately manage all systems directly as opposed to relying on outsourced third parties. Direct control over these critical resources has become more important as we focus are executing on new marketing agreements, create significant additional social media presence, and require related product systems with the ability to perform on a mass scale. Implementation and testing of these initiatives is currently underway with completion anticipated during the third quarter of 2025, which is expected to cause slowing growth in credit card transactions and growth over the short-term.

    Non-Voting Equity Investment in BankCard Services, LLC

    On June 26, 2024, the Company announced the acquisition of a 32.99% non-voting equity interest in BCS. This acquisition was completed by exchanging 231,508 shares of restricted, non-voting GBFH common stock for 143,371 shares of non-voting BCS common stock. The GBFH non-voting stock must be held by BCS for a minimum of one year and can only be converted into voting shares upon a disposition by BCS, in accordance with applicable Federal Reserve regulations.

    Earnings Call

    The Company will host its first quarter 2025 earnings call on Wednesday, April 30, 2025, at 10:00 a.m. PST. Interested parties can participate remotely via Internet connectivity. There will be no physical location for attendance.

    Interested parties may join online, via the ZOOM app on their smartphones, or by telephone:

    • ZOOM Conference ID 826 3030 7240
    • Passcode: 549549

    Joining by ZOOM Conference (audio only):

    Log in on your computer at 
    https://us02web.zoom.us/j/82630307240?pwd=TU4yZXJqMEc2VGZoUm5rRTl0OVFxdz09
     or use the ZOOM app on your smartphone.

    Joining by Telephone

    Dial (408) 638-0968. The conference ID is 826 3030 7240. Passcode: 549549.

    Click here to learn more about GBank Financial Holdings Inc.

    Notice Regarding Disclosures and Forward-Looking Statements

    This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended (“Securities Act”). This announcement is being issued in accordance with Rule 135 under the Securities Act.

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding certain of the Company’s goals and expectations with respect to future events that are subject to various risks and uncertainties, and statements preceded by, followed by, or that include the words “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursuant,” “target,” “continue,” and similar expressions. These statements are based upon the current belief and expectations of the Company’s management team and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company’s control). Factors that could cause actual results to differ materially from management’s projections, forecasts, estimates and expectations include, but are not limited to: the impact on us or our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from bank failures and any continuation of uncertainty in the banking industry, including the associated impact to the Company and other financial institutions of any regulatory changes or other mitigation efforts taken by government agencies in response thereto; increased competition for deposits and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to continued elevated interest rates or potential reductions in interest rates and a resulting decline in net interest income; the persistence of the inflationary pressures, or the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; effects of declines in housing prices in the United States and our market areas; increases in unemployment rates in the United States and our market areas; declines in commercial real estate values and prices; uncertainty regarding United States fiscal debt and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events; regulatory considerations; our ability to recognize the expected benefits and synergies of our completed acquisitions; the maintenance and development of well-established and valued client relationships and referral source relationships; acquisition or loss of key production personnel; changes in tax laws; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential increased regulatory requirements and costs related to the transition and physical impacts of climate change; and current or future litigation, regulatory examinations or other legal and/or regulatory actions. These forward-looking statements are based on current information and/or management’s good faith belief as to future events. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. The inclusion of this forward-looking information should not be construed as a representation by the Company or any person that the future events, plans, or expectations contemplated by the Company will be achieved. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. The forward-looking statements are made as of the date of this press release. The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

    GBank Financial Holdings Inc.
    9115 West Russell Road, Suite 110
    Las Vegas, Nevada 89148
    https://www.gbankfinancialholdings.com/

    FIRST QUARTER 2025 FINANCIAL RESULTS (UNAUDITED)

    Quarter Highlights:
    Net Income Earnings per
    diluted share    		 Net revenue(1) Net interest margin On-balance sheet guaranteed loans Book value per common share
    $4.5 million $0.31 $17.4 million 4.47% $245.6 million $10.27
    CEO COMMENTARY:
    “Our results reflect a continuation of strong earnings, with Company revenues absorbing elevated one-time costs, including SEC related audit, accounting, and legal expenses, which have now totaled approximately $1.1 million to date,” stated T. Ryan Sullivan, President/CEO
    LINKED QUARTER BASIS QTD YEAR-OVER-YEAR
    FINANCIAL HIGHLIGHTS:
    • Net income of $4.5 million and earnings per diluted share of $0.31, compared to $5.2 million and $0.37, respectively
    • Net interest income of $11.9 million, an increase of 0.9%, or $105 thousand
    • Net income of $4.5 million and earnings per diluted share of $0.31, compared to $3.7 million and $0.29, respectively
    • Net interest income of $11.9 million, an increase of 10.1%, or $1.1 million
    • Gain on sale of loans of $2.5 million, a decrease of 36.5%, or $1.5 million
    • Gain on sale of loans of $2.5 million, an increase of 21.8%, or $454 thousand
    • Noninterest income of $5.5 million, a decrease of 5.2%, or $301 thousand
    • Noninterest income of $5.5 million, an increase of 127.2%, or $3.1 million
    • Net revenue(1) of $17.4 million, a decrease of 1.1%, or $196 thousand
    • Net revenue(1) of $17.4 million, an increase of 31.4%, or $4.2 million
    • Noninterest expense of $10.9 million, an increase of 12.2%, or $1.2 million
    • Noninterest expense of $10.9 million, an increase of 30.2%, or $2.5 million
    FINANCIAL POSITION RESULTS:
    • On-balance sheet guaranteed loans of $245.6 million, an increase of 5.0%, or $11.6 million
    • On-balance sheet guaranteed loans of $245.6 million, a decrease of 6.8%, or $18.0 million
    • Total deposits of $996.0 million, an increase of 6.5%, or $60.9 million
    • Total deposits of $996.0 million, an increase of 23.4%, or $189.0 million
    • Stockholders’ equity of $146.6 million, an increase of 4.2%, or $5.9 million
    • Stockholders’ equity of $146.6 million, an increase of 42.9%, or $44.0 million
    LOANS AND ASSET QUALITY:
    • Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 1.26%
    • Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.43%
    • Nonperforming assets (nonaccrual loans, accruing loans past due 90 days or more, and OREO) to total assets of 1.71%, compared to 0.64%
    • Nonperforming assets, excluding guaranteed balances, to total assets of 0.48%, compared to 0.16%
    • ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.48%
    • ACL to loans, excluding guaranteed balances, of 1.41%, compared to 1.38%
    KEY PERFORMANCE METRICS:
    • Net interest margin decreased to 4.47%, compared to 4.53%
    • Net interest margin decreased to 4.47%, compared to 4.85%
    • Loan originations of $133.0 million, an increase of 10.9%, or $13.0 million
    • Loan originations of $133.0 million, a decrease of 2.7%, or $3.6 million
    • Return on average assets and equity was 1.61% and 12.59%, compared to 1.93% and 15.13%, respectively
    • Return on average assets and equity was 1.61% and 12.59%, compared to 1.59% and 14.67%, respectively
    • Book value per share of $10.27, an increase of 4.1% from $9.87
    • Book value per share of $10.27, an increase of 28.4% from $8.00
    GBank Financial Holdings Inc.
    Condensed Consolidated Balance Sheets
    (Unaudited)
                                       
                          Linked Quarter   Quarter YOY
                          3/31/25 vs. 12/31/24   3/31/25 vs. 3/31/24
    ($’s in 000, except per share data) Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024   $ Var   % Var   $ Var   % Var
    Assets                                  
    Cash and Due From Banks $ 6,701     $ 9,262     $ 5,798     $ 5,409     $ 8,334     $ (2,561 )   -27.6 %   $ (1,633 )   -19.6 %
    Interest-Bearing Deposits With Other Financial Institutions   140,270       114,860       65,160       82,749       45,844       25,410     22.1 %     94,426     206.0 %
    Total Cash and Cash Equivalents   146,971       124,122       70,958       88,158       54,178       22,849     18.4 %     92,793     171.3 %
                                       
    Investment Securities:                                  
    Available For Sale, at Fair Value   71,468       65,609       39,381       2,330       2,588       5,859     8.9 %     68,880     2661.5 %
    Held to Maturity, at Amortized Cost   39,903       40,569       46,043       56,520       86,999       (666 )   -1.6 %     (47,096 )   -54.1 %
                                       
    Loans Held For Sale   41,313       32,649       68,317       40,489       44,901       8,664     26.5 %     (3,588 )   -8.0 %
    Loans, Net of Deferred Fees and Costs:                                  
    Commercial and Industrial   56,885       64,000       53,490       50,498       46,863       (7,115 )   -11.1 %     10,022     21.4 %
    Commercial Real Estate – Non-owner Occupied   672,379       630,551       607,864       583,463       546,408       41,828     6.6 %     125,971     23.1 %
    Commercial Real Estate – Owner Occupied   81,768       88,802       86,785       106,595       110,065       (7,034 )   -7.9 %     (28,297 )   -25.7 %
    Construction and Land Development   3,201       2,934       2,161       529       386       267     9.1 %     2,815     729.3 %
    Multifamily   19,011       17,374       17,398       17,420       17,037       1,637     9.4 %     1,974     11.6 %
    Residential   7,619       10,584       12,025       13,443       12,281       (2,965 )   -28.0 %     (4,662 )   -38.0 %
    Consumer   2,502       1,713       1,276       909       549       789     46.1 %     1,953     355.7 %
    Total Loans, Net of Deferred Fees and Costs   843,365       815,958       780,999       772,857       733,589       27,407     3.4 %     109,776     15.0 %
    Less: Allowance for Credit Losses   (8,997 )     (9,114 )     (7,934 )     (7,342 )     (7,088 )     117     -1.3 %     (1,909 )   26.9 %
    Total Net Loans   834,368       806,844       773,065       765,515       726,501       27,524     3.4 %     107,867     14.8 %
                                       
    Loan Servicing Asset   9,231       8,976       8,046       7,698       7,124       255     2.8 %     2,107     29.6 %
    Restricted Investment in Bank Stock   4,652       4,652       4,652       4,652       3,222       –     0.0 %     1,430     44.4 %
    All Other Assets   42,106       38,943       37,540       43,992       37,937       3,163     8.1 %     4,169     11.0 %
    Total Assets $ 1,190,012     $ 1,122,364     $ 1,048,002     $ 1,009,354     $ 963,450     $ 67,648     6.0 %   $ 226,562     23.5 %
    Liabilities                                  
    Non-Interest Bearing Demand $ 242,650     $ 239,672     $ 229,875     $ 220,438     $ 216,307     $ 2,978     1.2 %   $ 26,343     12.2 %
    Interest Bearing Demand   62,035       68,132       65,623       65,120       63,740       (6,097 )   -8.9 %     (1,705 )   -2.7 %
    Savings and Money Market   280,056       256,724       244,091       222,115       199,549       23,332     9.1 %     80,507     40.3 %
    Certificates of Deposit   411,201       370,552       343,931       332,695       327,326       40,649     11.0 %     83,875     25.6 %
    Total Deposits   995,942       935,080       883,520       840,368       806,922       60,862     6.5 %     189,020     23.4 %
                                       
    Short-Term Borrowings   –       –       –       12,000       10,000       –     0.0 %     (10,000 )   -100.0 %
    Subordinated Debt   26,107       26,088       26,070       26,051       26,032       19     0.1 %     75     0.3 %
    Operating Lease Liability   6,299       4,839       5,032       5,221       5,409       1,460     30.2 %     890     16.5 %
    Other Liabilities   15,048       15,657       16,997       14,769       12,521       (609 )   -3.9 %     2,527     20.2 %
    Total Liabilities   1,043,396       981,664       931,619       898,409       860,884       61,732     6.3 %     182,512     21.2 %
                                       
    Equity                                  
    Common Stock   1       1       1       1       1       –     0.0 %     –     0.0 %
    Additional Paid-in Capital   78,718       77,571       57,287       56,966       53,322       1,147     1.5 %     25,396     47.6 %
    Retained Earnings   68,906       64,437       59,192       54,177       49,501       4,469     6.9 %     19,405     39.2 %
    Accumulated Other Comprehensive Loss   (1,009 )     (1,309 )     (97 )     (199 )     (258 )     300     -22.9 %     (751 )   291.1 %
    Total Stockholders’ Equity   146,616       140,700       116,383       110,945       102,566       5,916     4.2 %     44,050     42.9 %
    Total Liabilities & Stockholders’ Equity $ 1,190,012     $ 1,122,364     $ 1,048,002     $ 1,009,354     $ 963,450     $ 67,648     6.0 %   $ 226,562     23.5 %
                                       
    Book Value Per Common Share $ 10.27     $ 9.87     $ 8.91     $ 8.49     $ 8.00     $ 0.40     4.1 %   $ 2.27     28.4 %
                                       
    GBank Financial Holdings Inc.
    Condensed Consolidated Income Statements
    (Unaudited)
                       
      Three Months Ended
    ($’s in 000, except per share data) Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
    Interest Income                  
    Loans $ 16,836     $ 17,231     $ 17,347     $ 16,360     $ 15,330  
    Deposits With Other Financial Institutions   1,192       1,099       1,367       1,165       972  
    Investment Securities   1,281       1,177       924       868       1,014  
    Other Interest Bearing Balances   100       103       102       96       74  
    Total Interest Income   19,409       19,610       19,740       18,489       17,390  
                       
    Interest Expense                  
    Deposits   7,230       7,535       7,194       6,848       6,198  
    Short-term Borrowings and Subordinated Debt   285       286       287       293       390  
    Total Interest Expense   7,515       7,821       7,481       7,141       6,588  
                       
    Net Interest Income   11,894       11,789       12,259       11,348       10,802  
    Provision for Credit Losses – Loans   (710 )     (1,337 )     (570 )     (283 )     –  
    Provision for Credit Losses – Unfunded Commitments   (11 )     (13 )     (8 )     (12 )     (20 )
    Net Interest Income after Provision for Credit Losses   11,173       10,439       11,681       11,053       10,782  
                       
    Other Income                  
    Gain on Sales of Loans   2,537       3,998       2,838       3,163       2,083  
    Loan Servicing Income   703       597       566       534       60  
    Service Charges and Fees   56       54       48       41       41  
    Net Interchange Fees   2,003       947       284       146       20  
    Other Income   164       168       166       282       201  
    Total Other Income   5,463       5,764       3,902       4,166       2,405  
                       
    Noninterest Expenses                  
    Salaries and Employee Benefits   6,400       5,813       5,495       5,752       5,290  
    Occupancy Expenses   392       398       404       417       447  
    Other Expenses   4,115       3,509       3,156       2,963       2,637  
    Total Noninterest Expenses   10,907       9,720       9,055       9,132       8,374  
                       
    Income Before Provision For Income Taxes   5,729       6,483       6,528       6,087       4,813  
    Provision For Income Taxes   (1,224 )     (1,239 )     (1,513 )     (1,411 )     (1,112 )
    Net Income Before Equity Investment Loss   4,505       5,244       5,015       4,676       3,701  
    Net Loss Attributable to Equity Investment   (35 )     –       –       –       –  
    Net Income $ 4,470     $ 5,244     $ 5,015     $ 4,676     $ 3,701  
                       
    Earnings Per Share $ 0.31     $ 0.37     $ 0.38     $ 0.36     $ 0.29  
    Earnings Per Share (Diluted) $ 0.31     $ 0.37     $ 0.38     $ 0.36     $ 0.29  
                       
    GBank Financial Holdings Inc.
    Average Balances, Rates, and Interest Income and Expense
    (Unaudited)
                                               
              For the Three Months Ended
              March 31, 2025   December 31, 2024   March 31, 2024
    (Dollars in thousands)   Average       Yield/   Average       Yield/   Average       Yield/
              Balance   Interest   Rate(2)   Balance   Interest   Rate(2)   Balance   Interest   Rate(2)
    ASSETS:                                    
      Interest Bearing Deposits   $ 102,628   $ 1,192   4.71 %   $ 85,424   $ 1,099   5.12 %   $ 66,100   $ 972   5.91 %
      Investment Securities:                                    
        Taxable     105,222     1,281   4.94 %     98,712     1,177   4.74 %     98,084     1,014   4.16 %
      Loans and Loans Held For Sale     866,690     16,836   7.88 %     846,583     17,231   8.10 %     727,786     15,330   8.47 %
      Restricted Investment in Bank Stock     4,652     100   8.72 %     4,652     103   8.81 %     3,222     74   9.24 %
        Total Earning Assets     1,079,192     19,409   7.29 %     1,035,371     19,610   7.53 %     895,192     17,390   7.81 %
                                               
      Cash and Due From Banks     6,216             5,938             5,935        
      Other Assets     39,177             38,753             33,602        
          Total Assets   $ 1,124,585           $ 1,080,062           $ 934,729        
                                               
    LIABILITIES & SHAREHOLDERS’ EQUITY                                    
      Deposits:                                    
        Interest-bearing Demand   $ 65,693   $ 355   2.19 %   $ 64,453   $ 385   2.38 %   $ 65,303   $ 393   2.42 %
        Money Market and Savings     264,085     2,411   3.70 %     255,068     2,496   3.89 %     186,372     1,759   3.80 %
        Certificates of Deposit     385,704     4,464   4.69 %     359,285     4,654   5.15 %     309,221     4,046   5.26 %
          Total Interest-Bearing Deposits     715,482     7,230   4.10 %     678,806     7,535   4.42 %     560,896     6,198   4.44 %
                                               
      Short-Term Borrowings     –     –   0.00 %     2     –   0.00 %     7,583     104   5.52 %
      Subordinated Debt     26,095     285   4.43 %     26,076     286   4.36 %     26,021     286   4.42 %
          Total Interest-Bearing Liabilities     741,577     7,515   4.11 %     704,884     7,821   4.41 %     594,500     6,588   4.46 %
                                               
      Noninterest-bearing Deposits     218,874             214,880             220,767        
      Other Liabilities     20,139             22,403             18,003        
      Shareholders’ Equity     143,995             137,895             101,459        
          Total Liabilities & Shareholders’ Equity   $ 1,124,585           $ 1,080,062           $ 934,729        
                                               
      Net Interest Income       $ 11,894           $ 11,789           $ 10,802    
                                               
      Total Yield on Earning Assets           7.29 %           7.53 %           7.81 %
      Cost on Interest-Bearing Liabilities           4.11 %           4.41 %           4.46 %
      Average Interest Spread           3.18 %           3.12 %           3.35 %
      Net Interest Margin           4.47 %           4.53 %           4.85 %
      Net Interest Margin (Bank Only)           4.58 %           4.64 %           4.98 %
    GBank Financial Holdings Inc.
    Additional Financial Information
    (Unaudited)
                         
        Three Months Ended
    ($’s in 000, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
                         
    Key Performance Metrics                    
    Return on Average Assets-Net Income (2)     1.61 %     1.93 %     1.96 %     1.90 %     1.59 %
    Return on Average Stockholders’ Equity(2)     12.59 %     15.13 %     17.29 %     17.59 %     14.67 %
    Efficiency Ratio     62.84 %     55.38 %     56.03 %     58.86 %     63.41 %
    Net Interest Margin(2)     4.47 %     4.53 %     5.00 %     4.82 %     4.85 %
    Net Revenue(1)   $ 17,357     $ 17,553     $ 16,161     $ 15,514     $ 13,207  
    Common Equity / Assets     12.3 %     12.5 %     11.1 %     11.0 %     10.6 %
    Tier 1 Leverage Ratio – Bank     14.23 %     12.90 %     13.08 %     12.88 %     13.03 %
                         
    Selected Loan Metrics                    
    Guaranteed Portion of Loans Held for Sale   $ 41,313     $ 32,649     $ 68,317     $ 40,489     $ 44,901  
    Guaranteed Portion of Loans Held for Investment     204,239       201,267       203,027       215,382       218,619  
    Total Guaranteed Loans     245,552       233,916       271,344       255,871       263,520  
    Guaranteed Loans as a Percent of Loans(1)     24.2 %     24.7 %     26.0 %     27.9 %     29.8 %
                         
    Asset Quality                    
    Total nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    Loans past due 90 days and still accruing     1,153       40       27       1,142       33  
    Other real estate owned     –       –       –       –       –  
    Total non-performing assets     20,373       14,168       5,408       7,612       6,129  
    Non-performing assets: guaranteed portion     14,687       9,321       3,838       5,396       4,572  
    Non-performing assets: non-guaranteed portion     5,686       4,847       1,570       2,216       1,557  
                         
    Non-performing assets to total assets     1.71 %     1.26 %     0.52 %     0.75 %     0.64 %
    Non-performing assets, excluding guaranteed, to total assets(1)     0.48 %     0.43 %     0.15 %     0.22 %     0.16 %
    Net charge-offs (recoveries)   $ 828     $ 157     $ (22 )   $ 29     $ –  
                         
    Loans past due 30-89 days and accruing   $ 14,853     $ 11,822     $ 12,390     $ 1,054     $ 3,428  
    Loans past due 30-89 days and accruing: guaranteed portion   $ 11,915     $ 8,713     $ 8,535     $ –     $ 1,028  
    Loans past due 30-89 days and accruing: non-guaranteed portion   $ 2,938     $ 3,109     $ 3,855     $ 1,054     $ 2,400  
                         
    Allowance for Credit Losses (ACL)   $ 8,997     $ 9,114     $ 7,934     $ 7,342     $ 7,088  
    Nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    ACL to nonaccrual loans     47 %     65 %     147 %     113 %     116 %
    ACL to nonaccrual loans, excluding guaranteed(1)     168 %     190 %     514 %     130 %     465 %
    ACL to loans     1.07 %     1.12 %     1.02 %     0.95 %     0.97 %
    ACL to loans, excluding guaranteed(1)     1.41 %     1.48 %     1.37 %     1.32 %     1.38 %
                         
    Book Value                    
    Stockholders’ Equity   $ 146,616     $ 140,700     $ 116,383     $ 110,945     $ 102,566  
    Common shares outstanding     14,271       14,252       13,067       13,061       12,824  
    Book value per common share   $ 10.27     $ 9.87     $ 8.91     $ 8.49     $ 8.00  
    Employees – FTE     175       169       159       155       150  
    GBank Financial Holdings Inc.
    Reconciliation of Non-GAAP Financial Measures
    (Unaudited)
                         
        Three Months Ended
    ($’s in 000, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
                         
    Net Revenue(3)                    
    Net Interest Income   $ 11,894     $ 11,789     $ 12,259     $ 11,348     $ 10,802  
    Non-Interest Income     5,463       5,764       3,902       4,166       2,405  
    Net Revenue   $ 17,357     $ 17,553     $ 16,161     $ 15,514     $ 13,207  
                         
    Guaranteed Loans as a Percent of Loans(4)                    
    SBA and USDA Guaranteed Loans   $ 204,239     $ 201,267     $ 203,027     $ 215,382     $ 218,619  
    Loans, Net of Deferred Fees and Costs     843,365       815,958       780,999       772,857       733,589  
    Guaranteed Loans as a % of Loans     24.2 %     24.7 %     26.0 %     27.9 %     29.8 %
                         
    Non-performing assets, excluding guaranteed, to total assets(4)                    
    Non-performing assets   $ 20,373     $ 14,168     $ 5,408     $ 7,612     $ 6,129  
    Less: SBA and USDA guaranteed portions of non-performing assets     14,687       9,321       3,838       5,396       4,572  
    Non-performing assets, excluding guaranteed portions     5,686       4,847       1,570       2,216       1,557  
    Total assets     1,190,012       1,122,364       1,048,002       1,009,354       963,450  
    Non-performing assets, excluding guaranteed, to total assets     0.48 %     0.43 %     0.15 %     0.22 %     0.16 %
                         
    Allowance for credit losses (ACL) to nonaccrual loans, excluding guaranteed(4)                
    Nonaccrual loans   $ 19,220     $ 14,128     $ 5,381     $ 6,470     $ 6,096  
    Less: SBA and USDA guaranteed portions of nonaccrual loans     13,859       9,321       3,838       833       4,572  
    Nonaccrual loans, excluding guaranteed portions     5,361       4,807       1,543       5,637       1,524  
    ACL to nonaccrual loans, excluding guaranteed     168 %     190 %     514 %     130 %     465 %
                         
    ACL to loans, excluding guaranteed(4)                    
    Loans, net of deferred fees and costs   $ 843,365     $ 815,958     $ 780,999     $ 772,857     $ 733,589  
    Less: SBA and USDA guaranteed portions of loans     204,239       201,267       203,027       215,382       218,619  
    Loans, excluding guaranteed     639,126       614,691       577,972       557,475       514,970  
    ACL to loans, excluding guaranteed     1.41 %     1.48 %     1.37 %     1.32 %     1.38 %
      (1)  See Reconciliation of Non-GAAP Financial Measures      
      (2) Ratios are annualized on an actual/actual basis          
      (3) We believe this non-GAAP measurement presents trends in income generation of the Company.     
      (4) We believe these non-GAAP measurements provide useful metrics regarding the at-risk assets of the Company.      

    The MIL Network –

  • MIL-OSI New Zealand: Protecting New Zealand’s energy infrastructure

    Source: New Zealand Government

    Improving the current system to better protect power lines from falling trees will protect the security of New Zealand’s electricity infrastructure, says Energy Minister Simon Watts. 
    “Secure electricity lines are critical to electrifying New Zealand’s economy and delivering the resilient and reliable electricity supply we need to power economic growth,” Mr Watts says.
    “Cyclone Gabrielle and Cyclone Tam highlighted the vulnerability of our infrastructure to severe weather events like storms and floods. During Cyclone Gabrielle alone, trees outside the Growth Limit Zone caused power outages that left 68,000 households without heating, lighting, internet, and access to essential appliances.”
    The Government has now agreed to amendments to the Electricity (Hazards from Trees) Regulations 2003, that will lower the risk to power lines from trees that are close to but aren’t immediately beside the line. 
    “We’re taking action to deal with the increasing risk of damaged infrastructure and support our adaptation to the changing climate,” Mr Watts says.
    The amendments introduce two key measures:

    Enabling lines owners to assess the likelihood and potential impact of a fall for trees they consider could be a risk to lines, then issue a Treefall Hazard Notice for moderate- and high-risk trees.
    Restricting the planting of new trees on land that is not already forested outside of urban areas.

    “We have worked closely with lines owners and other impacted stakeholders to ensure we struck the right balance between security of our electricity supply, protecting property rights, and making sure the forestry sector’s Emissions Trading Scheme-related revenues are not unduly impacted,” Mr Watts says.
    “This Government has made it clear that we are committed to unleashing transmission and distribution infrastructure on our mission to electrify the New Zealand economy. Ensuring the security of our network infrastructure is essential to delivering reliable electricity to all New Zealanders.”
     

    MIL OSI New Zealand News –

  • MIL-OSI: Sound Financial Bancorp, Inc. Q1 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    SEATTLE, April 29, 2025 (GLOBE NEWSWIRE) — Sound Financial Bancorp, Inc. (the “Company”) (Nasdaq: SFBC), the holding company for Sound Community Bank (the “Bank”), today reported net income of $1.2 million for the quarter ended March 31, 2025, or $0.45 diluted earnings per share, as compared to net income of $1.9 million, or $0.74 diluted earnings per share, for the quarter ended December 31, 2024, and $770 thousand, or $0.30 diluted earnings per share, for the quarter ended March 31, 2024. The Company also announced today that its Board of Directors declared a cash dividend on the Company’s common stock of $0.19 per share, payable on May 23, 2025 to stockholders of record as of the close of business on May 9, 2025.

    Comments from the President / Chief Executive Officer and Chief Financial Officer

    “Despite ongoing economic uncertainty, we remained focused on lowering our cost of deposits and originating new loans at higher rates, which contributed to a 12-basis point improvement in our net interest margin compared to the prior quarter. This reflects the team’s strong efforts to build full banking relationships by addressing both the lending and deposit needs of our consumer and business clients,” remarked Laurie Stewart, President and Chief Executive Officer.

    “We continue to prioritize expense management, even though expenses increased compared to the previous quarter. The quarter-over-quarter increase was largely due to typical year-end accrual adjustments and annual expenses that are recognized in the first quarter. However, when compared to the first quarter of 2024, we have seen reductions in combined salaries and benefits, and operational expenses, thanks to our investments in technology. We also expect the year-over-year growth in data processing costs to moderate as the year progresses,” explained Wes Ochs, Executive Vice President and Chief Financial Officer.

    Mr. Ochs continued, “While we did see an increase in nonperforming loans this quarter mainly due to two specific credits, one of which has since been repaid, we have not observed broader signs of stress in the loan portfolio. Importantly, we also successfully exited a $17 million loan that had been rated as special mention, which contributed to the decline in overall loan balances. Notably, 83% of our nonperforming loans are tied to just four loans, each with its own unique circumstances. These loans are well-secured, and we are actively working toward resolutions in the near-term.”

     

    Q1 2025 Financial Performance
    Total assets increased $75.6 million or 7.6% to $1.07 billion at March 31, 2025, from $993.6 million at December 31, 2024, and decreased $17.5 million or 1.6% from $1.09 billion at March 31, 2024.     Net interest income decreased $149 thousand or 1.8% to $8.1 million for the quarter ended March 31, 2025, from $8.2 million for the quarter ended December 31, 2024, and increased $611 thousand or 8.2% from $7.5 million for the quarter ended March 31, 2024.
           
    Loans held-for-portfolio decreased $13.9 million or 1.5% to $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024, and decreased $11.7 million or 1.3% from $897.9 million at March 31, 2024.      Net interest margin (“NIM”), annualized, was 3.25% for the quarter ended March 31, 2025, compared to 3.13% for the quarter ended December 31, 2024 and 2.95% for the quarter ended March 31, 2024.
           
    Total deposits increased $72.5 million or 8.7% to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024, and decreased $6.5 million or 0.7% from $916.9 million at March 31, 2024. Noninterest-bearing deposits decreased $5.8 million or 4.4% to $126.7 million at March 31, 2025 compared to $132.5 million at December 31, 2024, and decreased $2.0 million or 1.5% compared to $128.7 million at March 31, 2024.      A $203 thousand release of provision for credit losses was recorded for the quarter ended March 31, 2025, compared to a $14 thousand provision and a $33 thousand release of provision for credit losses for the quarters ended December 31, 2024 and March 31, 2024, respectively. At March 31, 2025, the allowance for credit losses on loans to total loans outstanding was 0.95%, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024.
           
    The loans-to-deposits ratio was 98% at March 31, 2025, compared to 108% at December 31, 2024 and 98% at March 31, 2024.      Total noninterest income decreased $62 thousand or 5.3% to $1.1 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and was virtually unchanged compared to the quarter ended March 31, 2024.
           
    Total nonperforming loans increased $2.2 million or 28.9% to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024, and increased $600 thousand or 6.6% from $9.1 million at March 31, 2024. Nonperforming loans to total loans was 1.09% and the allowance for credit losses on loans to total nonperforming loans was 86.95% at March 31, 2025.      Total noninterest expense increased $856 thousand or 12.1% to $7.9 million for the quarter ended March 31, 2025, compared to the quarter ended December 31, 2024, and increased $258 thousand or 3.4% compared to the quarter ended March 31, 2024.
           
           The Bank continued to maintain capital levels in excess of regulatory requirements and was categorized as “well-capitalized” at March 31, 2025.

    Operating Results

    Net Interest Income after (Release of) Provision for Credit Losses

        For the Quarter Ended   Q1 2025 vs. Q4 2024   Q1 2025 vs. Q1 2024
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   Amount
    ($)    		   Percentage (%)   Amount
    ($)    		   Percentage (%)
        (Dollars in thousands, unaudited)
    Interest income   $ 13,706     $ 14,736   $ 13,760     $ (1,030 )   (7.0) %   $ (54 )   (0.4) %
    Interest expense     5,635       6,516     6,300       (881 )   (13.5) %     (665 )   (10.6) %
    Net interest income     8,071       8,220     7,460       (149 )   (1.8) %     611     8.2 %
    (Release of) provision for credit losses     (203 )     14     (33 )     (217 )   (1550.0) %     (170 )   515.2 %
    Net interest income after (release of) provision for credit losses     8,274       8,206     7,493       68     0.8 %     781     10.4 %
                                                       

    Q1 2025 vs Q4 2024

    The decrease in interest income from the prior quarter was primarily due to a lower average balance of loans, investments and interest-earning cash, an eight basis point decline in the average yield on loans, a 41 basis point decline in the average yield on interest-bearing cash, and a 57 basis point decline in the average yield on investments.

    Interest income on loans decreased $482 thousand, or 3.7%, to $12.6 million for the quarter ended March 31, 2025, compared to $13.1 million for the quarter ended December 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, down from $900.8 million for the quarter ended December 31, 2024. The decrease in the average balance of total loans was primarily due to declines in construction and land loans and one-to-four family loans, offset by growth in commercial and multifamily loans and home equity loans. The average balances for manufactured home loans, floating home loans, commercial business loans, and other consumer loans remained relatively flat from the fourth quarter of 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, down from 5.77% for the quarter ended December 31, 2024. The decline was primarily due to interest that was reversed on nonaccrual loans during the first quarter, as well as interest that had been recognized on those loans in the fourth quarter. This was partly offset by new loans being made at higher interest rates and some variable-rate loans adjusting upward. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $132 thousand for the quarter ended December 31, 2024. Interest income on interest-bearing cash decreased $524 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.5 million for the quarter ended December 31, 2024. This decrease was a result of both lower average yields and average balances during the quarter.

    The decrease in interest expense during the current quarter from the prior quarter was primarily the result of lower average balances and rates paid on all categories of interest-bearing deposits. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.58% for the quarter ended December 31, 2024 as higher costing deposits repriced lower due to market interest rate cuts beginning in September 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended December 31, 2024.

    A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a provision for credit losses of $14 thousand for the quarter ended December 31, 2024, consisting of a release of provision for credit losses on loans of $73 thousand and a provision for credit losses on unfunded loan commitments of $87 thousand. The decrease in the provision for credit losses for the quarter ended March 31, 2025 compared to the quarter ended December 31, 2024 resulted primarily from a smaller loan portfolio and a reduced balance of unfunded commitments, partially offset by an additional qualitative adjustment applied to certain loan segments, specifically consumer and construction loans, reflecting increased uncertainty in market conditions tied to the impact of tariffs and other external factors affecting our clients. Expected credit loss estimates consider various factors, including market conditions, borrower-specific information, projected delinquencies, and anticipated effects of economic trends on borrowers’ ability to repay.

    Q1 2025 vs Q1 2024

    Interest income on loans increased $355 thousand, or 2.9%, to $12.6 million for the quarter ended March 31, 2025, compared to $12.2 million for the quarter ended March 31, 2024. The average balance of total loans was $896.8 million for the quarter ended March 31, 2025, up from $895.4 million for the quarter ended March 31, 2024. The average yield on total loans was 5.69% for the quarter ended March 31, 2025, up from 5.49% for the quarter ended March 31, 2024. The increase in the average loan yield during the current quarter, compared to the same quarter in 2024, was primarily due to the origination of new loans at higher interest rates. Additionally, variable-rate loans resetting to higher rates contributed to the increase in average yield compared to the first quarter of 2024. Interest income on investments was $108 thousand for the quarter ended March 31, 2025, compared to $111 thousand for the quarter ended March 31, 2024. Interest income on interest-bearing cash decreased $406 thousand to $1.0 million for the quarter ended March 31, 2025, compared to $1.4 million for the quarter ended March 31, 2024. The decrease was a result of both a lower average yield and average balance.

    The decrease in interest expense during the current quarter from the same quarter a year ago was primarily the result of a $18.9 million decrease in the average balance of interest-bearing demand and NOW accounts, a $25.5 million decrease in the average balance of certificate accounts, and a $15.0 million decrease in the average balance of FHLB advances, as well as lower average rates paid on all categories of interest-bearing deposits; resulting from lower market interest rates generally. These average-balance decreases were partially offset by a $51.0 million increase in the average balance of savings and money market accounts. The average cost of deposits was 2.37% for the quarter ended March 31, 2025, down from 2.57% for the quarter ended March 31, 2024. The average cost of FHLB advances was 4.25% for the quarter ended March 31, 2025, down from 4.31% for the quarter ended March 31, 2024.

    A release of provision for credit losses of $203 thousand was recorded for the quarter ended March 31, 2025, consisting of a release of provision for credit losses on loans of $85 thousand and a release of provision for credit losses on unfunded loan commitments of $118 thousand. This compared to a release of provision for credit losses of $33 thousand for the quarter ended March 31, 2024, consisting of a release of provision for credit losses on loans of $106 thousand and a provision for credit losses on unfunded loan commitments of $73 thousand. The larger release recorded in the current quarter primarily reflected the factors discussed above.

    Noninterest Income

        For the Quarter Ended   Q1 2025 vs. Q4 2024   Q1 2025 vs. Q1 2024
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   Amount
    ($)    		   Percentage (%)   Amount
    ($)    		   Percentage (%)
        (Dollars in thousands, unaudited)
    Service charges and fee income   $ 684     $ 619   $ 612     $ 65     10.5 %   $ 72     11.8 %
    Earnings on bank-owned life insurance (“BOLI”)     195       127     177       68     53.5 %     18     10.2 %
    Mortgage servicing income     269       277     282       (8 )   (2.9) %     (13 )   (4.6) %
    Fair value adjustment on mortgage servicing rights     (99 )     77     (65 )     (176 )   (228.6) %     (34 )   52.3 %
    Net gain on sale of loans     49       53     90       (4 )   (7.5) %     (41 )   (45.6) %
    Other income     —       7     —       (7 )   (100.0) %     —     100.0 %
    Total noninterest income   $ 1,098     $ 1,160   $ 1,096     $ (62 )   (5.3) %   $ 2     0.2 %
     

    Q1 2025 vs Q4 2024

    The decrease in noninterest income during the current quarter compared to the quarter ended December 31, 2024 was primarily related to

    • a $176 thousand downward adjustment in fair value of mortgage servicing rights due to a smaller servicing portfolio, partially offset by :
    • an increase of $68 thousand in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets which decreased the values of policies; and
    • a $65 thousand increase in service charges and fee income due to a volume incentive paid by Mastercard in the first quarter of 2025 and higher interchange income.

    Loans sold during the quarter ended March 31, 2025, totaled $2.0 million, compared to $3.5 million and $4.2 million of loans sold during the quarters ended December 31, 2024 and March 31, 2024, respectively.

    Q1 2025 vs Q1 2024

    The increase in noninterest income during the current quarter compared to the quarter ended March 31, 2024 was primarily due to

    • a $72 thousand increase in service charges and fee income primarily due to the reasons noted above, and
    • an $18 thousand increase in earnings from BOLI primarily due to the strategic decision to surrender and exchange existing policies into higher yielding policies in the first quarter, offset by fluctuations in financial markets, which reduced the values of policies. The increases in service charges and fee income and in earnings from BOLI were partially offset by
    • a $13 thousand decrease in mortgage servicing income as a result of the portfolio paying down at a faster rate than originations replace repayments;
    • a $34 thousand decrease in the fair value adjustment on mortgage servicing rights due to a smaller servicing portfolio; and
    • a $41 thousand decrease in net gain on sale of loans due to fewer loans sold.

    Noninterest Expense

        For the Quarter Ended   Q1 2025 vs. Q4 2024   Q1 2025 vs. Q1 2024
        March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   Amount
    ($)    		   Percentage (%)   Amount
    ($)    		   Percentage (%)
        (Dollars in thousands, unaudited)
    Salaries and benefits   $ 4,595   $ 3,920     $ 4,543   $ 675   17.2 %   $ 52     1.1 %
    Operations     1,365     1,329       1,457     36   2.7 %     (92 )   (6.3) %
    Regulatory assessments     221     189       189     32   16.9 %     32     16.9 %
    Occupancy     437     409       444     28   6.8 %     (7 )   (1.6) %
    Data processing     1,293     1,232       1,017     61   5.0 %     276     27.1 %
    Net loss (gain) on OREO and repossessed assets     3     (21 )     6     24   (114.3) %     (3 )   (50.0) %
    Total noninterest expense   $ 7,914   $ 7,058     $ 7,656   $ 856   12.1 %   $ 258     3.4 %
     

    Q1 2025 vs Q4 2024

    The increase in noninterest expense during the current quarter from the quarter ended December 31, 2024 was primarily a result of:

    • a $675 thousand increase in salaries and benefits related to higher salaries expense, partially due to accrual reversals in the fourth quarter 2024, along with an annual deferred compensation contribution for key executives made in the first quarter of each year, higher 401(k) contributions, and higher payroll taxes related to annual bonus payments;
    • a $32 thousand increase in regulatory assessments due to a higher estimated accrual for exam costs;
    • a $28 thousand increase in occupancy due to higher annual property charges and maintenance fees recognized in the first quarter;
    • a $61 thousand increase in data processing due to higher vendor fees associated with annual subscription renewals; and
    • a $24 thousand increase in OREO and repossessed assets due to the addition of a new property in the first quarter of 2025 and the absence of property sales in the prior quarter.

    Q1 2025 vs Q1 2024

    The increase in noninterest expense during the current quarter from the quarter ended March 31, 2024 was primarily a result of:

    • a $276 thousand increase in data processing expenses due to various project implementations that began amortizing in the third quarter of 2024 and the reimbursement of expenses by a software vendor in the first quarter of 2024;
    • a $32 thousand increase in regulatory assessment expenses due to a higher estimated accrual for exam costs.

    These increases were partially offset by a $92 thousand decrease in operations expense, primarily due to the recognition of annual fee reimbursements from Mastercard beginning in the first quarter of 2025 and lower expenses across various accounts resulting from ongoing cost saving initiatives and process improvements.

    Balance Sheet Review, Capital Management and Credit Quality

    Assets at March 31, 2025 totaled $1.07 billion, up from $993.6 million at December 31, 2024 and down from $1.09 billion at March 31, 2024. The increase in total assets from December 31, 2024 was primarily due to an increase in cash and cash equivalents, partially offset by a lower balance of loans held-for-portfolio. The decrease from one year ago was primarily a result of lower balances of cash and cash equivalents and loans held-for-portfolio.

    Cash and cash equivalents increased $87.9 million, or 201.3%, to $131.5 million at March 31, 2025, compared to $43.6 million at December 31, 2024, and decreased $6.5 million, or 4.7%, from $138.0 million at March 31, 2024. The increased cash and cash equivalents from the prior quarter-end was primarily due to the strategic decision to sell reciprocal deposits at the end of 2024, which reduced our cash balances. These reciprocal deposits returned to our balance sheet in the first quarter of 2025.

    Investment securities decreased $110 thousand, or 1.1%, to $9.8 million at March 31, 2025, compared to $9.9 million at December 31, 2024, and decreased $462 thousand, or 4.5%, from $10.3 million at March 31, 2024, as pay-offs and paydowns of investments exceeded new purchases. Held-to-maturity securities totaled $2.1 million at both March 31, 2025 and December 31, 2024, and totaled $2.2 million at March 31, 2024. Available-for-sale securities totaled $7.7 million at March 31, 2025, compared to $7.8 million at December 31, 2024 and $8.1 million at March 31, 2024.

    Loans held-for-portfolio were $886.2 million at March 31, 2025, compared to $900.2 million at December 31, 2024 and $897.9 million at March 31, 2024. The decrease from both prior dates was primarily due to the payoff during the first quarter of 2025 of one $17.0 million loan that was risk rated special mention.

    Nonperforming assets (“NPAs”), which are comprised of nonaccrual loans (including nonperforming modified loans), other real estate owned (“OREO”) and other repossessed assets, increased $2.2 million, or 29.4%, to $9.7 million at March 31, 2025, from $7.5 million at December 31, 2024 and decreased $49 thousand, or 0.5%, from $9.7 million at March 31, 2024. The increase in NPAs from December 31, 2024 was primarily due to the addition of six loans totaling $2.4 million to nonaccrual status, including two commercial real estate loans of $1.1 million and $988 thousand. The increase also included $41 thousand of other real estate owned properties. These additions were partially offset by $207 thousand in regular loan payments. Subsequent to quarter-end, the $988 thousand commercial real estate loan added during the quarter was paid-off. The decrease in NPAs from one year ago was primarily due to payoffs totaling $2.1 million, the return of $522 thousand of loans to accrual status, the sale of two other real estate owned properties for $690 thousand, and regular loan payments. These decreases were partially offset by the placement of an additional $3.6 million of loans on nonaccrual status, which included the two commercial real estate loans noted above.

    NPAs to total assets were 0.91%, 0.75% and 0.90% at March 31, 2025, December 31, 2024 and March 31, 2024, respectively. The allowance for credit losses on loans to total loans outstanding was 0.95% at March 31, 2025, compared to 0.94% at December 31, 2024 and 0.96% at March 31, 2024. Net loan charge-offs for the first quarter of 2025 totaled $21 thousand, compared to $13 thousand for the fourth quarter of 2024, and $56 thousand for the first quarter of 2024.

    The following table summarizes our NPAs at the dates indicated (dollars in thousands):

      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Nonperforming Loans:                  
    One-to-four family $ 762     $ 537     $ 745     $ 822     $ 835  
    Home equity loans   368       298       338       342       83  
    Commercial and multifamily   5,627       3,734       4,719       5,161       4,747  
    Construction and land   22       24       25       28       29  
    Manufactured homes   501       521       230       136       166  
    Floating homes   2,363       2,363       2,377       2,417       3,192  
    Commercial business   —       11       23       —       —  
    Other consumer   10       3       32       3       1  
    Total nonperforming loans   9,653       7,491       8,489       8,909       9,053  
    OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       —       575  
    Manufactured homes   41       —       115       115       115  
    Total OREO and repossessed assets   41       —       115       115       690  
    Total NPAs $ 9,694     $ 7,491     $ 8,604     $ 9,024     $ 9,743  
                       
    Percentage of Nonperforming Loans:                  
    One-to-four family   7.9 %     7.3 %     8.7 %     9.1 %     8.5 %
    Home equity loans   3.8       4.0       3.9       3.8       0.9  
    Commercial and multifamily   58.0       49.8       54.8       57.2       48.7  
    Construction and land   0.2       0.3       0.3       0.3       0.3  
    Manufactured homes   5.2       7.0       2.7       1.5       1.7  
    Floating homes   24.4       31.5       27.6       26.8       32.8  
    Commercial business   —       0.1       0.3       —       —  
    Other consumer   0.1       —       0.4       —       —  
    Total nonperforming loans   99.6       100.0       98.7       98.7       92.9  
    Percentage of OREO and Other Repossessed Assets:                  
    Commercial and multifamily   —       —       —       —       5.9  
    Manufactured homes   0.4       —       1.3       1.3       1.2  
    Total OREO and repossessed assets   0.4       —       1.3       1.3       7.1  
    Total NPAs   100.0 %     100.0 %     100.0 %     100.0 %     100.0 %
     

    The following table summarizes the allowance for credit losses at the dates and for the periods indicated (dollars in thousands, unaudited):

      At or For the Quarter Ended:
      March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Allowance for Credit Losses on Loans                  
    Balance at beginning of period $ 8,499     $ 8,585     $ 8,493     $ 8,598     $ 8,760  
    (Release of) provision for credit losses during the period   (85 )     (73 )     106       (88 )     (106 )
    Net charge-offs during the period   (21 )     (13 )     (14 )     (17 )     (56 )
    Balance at end of period $ 8,393     $ 8,499     $ 8,585     $ 8,493     $ 8,598  
    Allowance for Credit Losses on Unfunded Loan Commitments                  
    Balance at beginning of period $ 234     $ 147     $ 245     $ 266     $ 193  
    Provision for (release of) provision for credit losses during the period   (118 )     87       (98 )     (21 )     73  
    Balance at end of period   116       234       147       245       266  
    Allowance for Credit Losses $ 8,509     $ 8,733     $ 8,732     $ 8,738     $ 8,864  
    Allowance for credit losses on loans to total loans   0.95 %     0.94 %     0.95 %     0.96 %     0.96 %
    Allowance for credit losses to total loans   0.96 %     0.97 %     0.97 %     0.98 %     0.99 %
    Allowance for credit losses on loans to total nonperforming loans   86.95 %     113.46 %     101.13 %     95.33 %     94.97 %
    Allowance for credit losses to total nonperforming loans   88.15 %     116.58 %     102.86 %     98.08 %     97.91 %
                                           

    Total deposits increased $72.5 million, or 8.7%, to $910.3 million at March 31, 2025, from $837.8 million at December 31, 2024 and decreased $6.5 million, or 0.7%, from $916.9 million at March 31, 2024. The increase in total deposits compared to the prior quarter-end was primarily a result of the movement of reciprocal deposits off balance sheet for strategic objectives at year-end, followed by the return of those deposits to our balance sheet in the first quarter of 2025, and a decrease in one high cost money market deposit relationship as part of our strategic decision to decrease our overall cost of funds. Noninterest-bearing deposits decreased $5.8 million, or 4.4%, to $126.7 million at March 31, 2025, compared to $132.5 million at December 31, 2024 and decreased $2.0 million, or 1.5%, from $128.7 million at March 31, 2024. Noninterest-bearing deposits represented 13.9%, 15.8% and 14.0% of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024, respectively.

    FHLB advances totaled $25.0 million at March 31, 2025, compared to $25.0 million at both December 31, 2024, and March 31, 2024. FHLB advances are primarily used to support organic loan growth and to maintain liquidity ratios in line with our asset/liability objectives. FHLB advances outstanding at March 31, 2025 had maturities ranging from early 2026 through early 2028. Subordinated notes, net totaled $11.8 million at both March 31, 2025 and December 31, 2024, and $11.7 million at March 31, 2024.

    Stockholders’ equity totaled $104.4 million at March 31, 2025, an increase of $765 thousand, or 0.7%, from $103.7 million at December 31, 2024, and an increase of $3.4 million, or 3.4%, from $101.0 million at March 31, 2024. The increase in stockholders’ equity from December 31, 2024 was primarily the result of $1.2 million of net income earned during the current quarter, $81 thousand in share-based compensation, and $21 thousand in common stock options exercised, partially offset by a $17 thousand increase in accumulated other comprehensive loss, net of tax and the payment of $487 thousand in cash dividends to the Company’s stockholders.

    Sound Financial Bancorp, Inc., a bank holding company, is the parent company of Sound Community Bank, which is headquartered in Seattle, Washington and has full-service branches in Seattle, Tacoma, Mountlake Terrace, Sequim, Port Angeles, Port Ludlow and University Place. Sound Community Bank is a Fannie Mae Approved Lender and Seller/Servicer with one loan production office located in the Madison Park neighborhood of Seattle. For more information, please visit www.soundcb.com.

    Forward-Looking Statements Disclaimer

    When used in this press release and in documents filed or furnished by Sound Financial Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events and may turn out to be wrong because of inaccurate assumptions we might make, because of the factors listed below or because of other factors that we cannot foresee that could cause our actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made.

    Factors which could cause actual results to differ materially, include, but are not limited to: adverse impacts to economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation or deflation, a recession or slowed economic growth, as well as supply chain disruptions; changes in the interest rate environment, including increases and decreases in the Board of Governors of the Federal Reserve System (the Federal Reserve) benchmark rate and the duration at which such interest rate levels are maintained, which could adversely affect our revenues and expenses, the values of our assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the current and future monetary policies of the Federal Reserve in response thereto; the effects of any federal government shutdown; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; changes in consumer spending, borrowing and savings habits; fluctuations in interest rates; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; secondary market conditions for loans;expectations regarding key growth initiatives and strategic priorities; environmental, social and governance goals and targets; results of examinations of the Company or the Bank by their regulators; increased competition; changes in management’s business strategies; legislative changes; changes in the regulatory and tax environments in which the Company operates; disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on our third-party vendors; the potential for new or increased tariffs, trade restrictions, or geopolitical tensions that could affect economic activity or specific industry sectors; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events on our business; and other factors described in the Company’s latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the SEC, which are available at www.soundcb.com and on the SEC’s website at www.sec.gov. The risks inherent in these factors could cause the Company’s actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company and could negatively affect the Company’s operating and stock performance.

    The Company does not undertake—and specifically disclaims any obligation—to revise any forward-looking statement to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statement.

    CONSOLIDATED INCOME STATEMENTS
    (Dollars in thousands, unaudited)

        For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Interest income   $ 13,706     $ 14,736     $ 14,838   $ 14,039     $ 13,760  
    Interest expense     5,635       6,516       6,965     6,591       6,300  
    Net interest income     8,071       8,220       7,873     7,448       7,460  
    (Release of) provision for credit losses     (203 )     14       8     (109 )     (33 )
    Net interest income after (release of) provision for credit losses     8,274       8,206       7,865     7,557       7,493  
    Noninterest income:                    
    Service charges and fee income     684       619       628     761       612  
    Earnings on bank-owned life insurance     195       127       186     134       177  
    Mortgage servicing income     269       277       280     279       282  
    Fair value adjustment on mortgage servicing rights     (99 )     77       101     (116 )     (65 )
    Net gain on sale of loans     49       53       40     74       90  
    Other income     —       7       —     30       —  
    Total noninterest income     1,098       1,160       1,235     1,162       1,096  
    Noninterest expense:                    
    Salaries and benefits     4,595       3,920       4,469     4,658       4,543  
    Operations     1,365       1,329       1,540     1,569       1,457  
    Regulatory assessments     221       189       189     220       189  
    Occupancy     437       409       414     397       444  
    Data processing     1,293       1,232       1,067     910       1,017  
    Net (gain) loss on OREO and repossessed assets     3       (21 )     —     (17 )     6  
    Total noninterest expense     7,914       7,058       7,679     7,737       7,656  
    Income before provision for income taxes     1,458       2,308       1,421     982       933  
    Provision for income taxes     291       389       267     187       163  
    Net income   $ 1,167     $ 1,919     $ 1,154   $ 795     $ 770  
     

    CONSOLIDATED BALANCE SHEETS
    (Dollars in thousands, unaudited)

        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    ASSETS                    
    Cash and cash equivalents   $ 131,494     $ 43,641     $ 148,930     $ 135,111     $ 137,977  
    Available-for-sale securities, at fair value     7,689       7,790       8,032       7,996       8,115  
    Held-to-maturity securities, at amortized cost     2,121       2,130       2,139       2,147       2,157  
    Loans held-for-sale     2,267       487       65       257       351  
    Loans held-for-portfolio     886,226       900,171       901,733       889,274       897,877  
    Allowance for credit losses – loans     (8,393 )     (8,499 )     (8,585 )     (8,493 )     (8,598 )
    Total loans held-for-portfolio, net     877,833       891,672       893,148       880,781       889,279  
    Accrued interest receivable     3,540       3,471       3,705       3,413       3,617  
    Bank-owned life insurance, net     22,685       22,490       22,363       22,172       22,037  
    Other real estate owned (“OREO”) and other repossessed assets, net     41       —       115       115       690  
    Mortgage servicing rights, at fair value     4,688       4,769       4,665       4,540       4,612  
    Federal Home Loan Bank (“FHLB”) stock, at cost     1,734       1,730       2,405       2,406       2,406  
    Premises and equipment, net     4,591       4,697       4,807       4,906       6,685  
    Right-of-use assets     3,546       3,725       3,779       4,020       4,259  
    Other assets     6,957       7,031       6,777       6,995       4,500  
    TOTAL ASSETS   $ 1,069,186     $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685  
    LIABILITIES                    
    Interest-bearing deposits   $ 783,660     $ 705,267     $ 800,480     $ 781,854     $ 788,217  
    Noninterest-bearing deposits     126,687       132,532       129,717       124,915       128,666  
    Total deposits     910,347       837,799       930,197       906,769       916,883  
    Borrowings     25,000       25,000       40,000       40,000       40,000  
    Accrued interest payable     586       765       908       760       719  
    Lease liabilities     3,828       4,013       4,079       4,328       4,576  
    Other liabilities     10,774       9,371       9,711       9,105       9,578  
    Advance payments from borrowers for taxes and insurance     2,450       1,260       2,047       812       2,209  
    Subordinated notes, net     11,770       11,759       11,749       11,738       11,728  
    TOTAL LIABILITIES     964,755       889,967       998,691       973,512       985,693  
    STOCKHOLDERS’ EQUITY:                    
    Common stock     25       25       25       25       25  
    Additional paid-in capital     28,515       28,413       28,296       28,198       28,110  
    Retained earnings     76,952       76,272       74,840       74,173       73,907  
    Accumulated other comprehensive loss, net of tax     (1,061 )     (1,044 )     (922 )     (1,049 )     (1,050 )
    TOTAL STOCKHOLDERS’ EQUITY     104,431       103,666       102,239       101,347       100,992  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY   $ 1,069,186     $ 993,633     $ 1,100,930     $ 1,074,859     $ 1,086,685  
     

    KEY FINANCIAL RATIOS
    (unaudited)

        For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Annualized return on average assets   0.45 %   0.70 %   0.42 %   0.30 %   0.29 %
    Annualized return on average equity   4.53 %   7.40 %   4.50 %   3.17 %   3.06 %
    Annualized net interest margin(1)   3.25 %   3.13 %   2.98 %   2.92 %   2.95 %
    Annualized efficiency ratio(2)   86.31 %   75.25 %   84.31 %   89.86 %   89.48 %
    (1) Net interest income divided by average interest earning assets.
    (2) Noninterest expense divided by total revenue (net interest income and noninterest income).
       

    PER COMMON SHARE DATA
    (unaudited)

        At or For the Quarter Ended
        March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Basic earnings per share   $ 0.45   $ 0.75   $ 0.45   $ 0.31   $ 0.30
    Diluted earnings per share   $ 0.45   $ 0.74   $ 0.45   $ 0.31   $ 0.30
    Weighted-average basic shares outstanding     2,554,265     2,547,210     2,544,233     2,540,538     2,539,213
    Weighted-average diluted shares outstanding     2,578,609     2,578,771     2,569,368     2,559,015     2,556,958
    Common shares outstanding at period-end     2,566,069     2,564,907     2,564,095     2,557,284     2,558,546
    Book value per share   $ 40.70   $ 40.42   $ 39.87   $ 39.63   $ 39.47
                                   

    AVERAGE BALANCE, AVERAGE YIELD EARNED, AND AVERAGE RATE PAID
    (Dollars in thousands, unaudited)

    The following table presents, for the periods indicated, the total dollar amount of interest income from average interest-earning assets and the resultant yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates. Income and yields on tax-exempt obligations have not been computed on a tax equivalent basis. All average balances are daily average balances. Nonaccrual loans have been included in the table as loans carrying a zero yield for the period they have been on nonaccrual (dollars in thousands).

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
      Average Outstanding Balance   Interest Earned/Paid   Yield/Rate   Average Outstanding Balance   Interest Earned/Paid   Yield/Rate   Average Outstanding Balance   Interest Earned/Paid   Yield/Rate
    Interest-Earning Assets:                                  
    Loans receivable $ 896,822     $ 12,588   5.69 %   $ 900,832     $ 13,070   5.77 %   $ 895,430     $ 12,233   5.49 %
    Interest-earning cash   95,999       1,010   4.27 %     130,412       1,534   4.68 %     107,361       1,416   5.30 %
    Investments   12,924       108   3.39 %     13,263       132   3.96 %     14,038       111   3.18 %
    Total interest-earning assets $ 1,005,745       13,706   5.53 %     1,044,507     $ 14,736   5.61 %   $ 1,016,829       13,760   5.44 %
    Interest-Bearing Liabilities:                                  
    Savings and money market accounts $ 335,419       2,058   2.49 %   $ 350,495       2,476   2.81 %   $ 284,455       1,866   2.64 %
    Demand and NOW accounts   140,905       108   0.31 %     144,470       128   0.35 %     159,762       141   0.35 %
    Certificate accounts   289,960       3,039   4.25 %     301,293       3,413   4.51 %     315,495       3,696   4.71 %
    Subordinated notes   11,766       168   5.79 %     11,756       168   5.69 %     11,724       168   5.76 %
    Borrowings   25,000       262   4.25 %     30,546       331   4.31 %     40,000       429   4.31 %
    Total interest-bearing liabilities $ 803,050       5,635   2.85 %   $ 838,560       6,516   3.09 %   $ 811,436       6,300   3.12 %
    Net interest income/spread     $ 8,071   2.68 %       $ 8,220   2.52 %       $ 7,460   2.32 %
    Net interest margin         3.25 %           3.13 %           2.95 %
                                       
    Ratio of interest-earning assets to interest-bearing liabilities   125 %             125 %             125 %        
    Noninterest-bearing deposits $ 126,215             $ 130,476             $ 132,438          
    Total deposits   892,499     $ 5,205   2.37 %     926,734     $ 6,017   2.58 %     892,150     $ 5,703   2.57 %
    Total funding (1)   929,265       5,635   2.46 %     969,036       6,516   2.68 %     943,874       6,300   2.68 %
    (1) Total funding is the sum of average interest-bearing liabilities and average noninterest-bearing deposits. The cost of total funding is calculated as annualized total interest expense divided by average total funding.
       

    LOANS
    (Dollars in thousands, unaudited)

        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Real estate loans:                    
    One-to-four family   $ 262,457     $ 269,684     $ 271,702     $ 268,488     $ 279,213  
    Home equity     28,112       26,686       25,199       26,185       24,380  
    Commercial and multifamily     392,798       371,516       358,587       342,632       324,483  
    Construction and land     42,492       73,077       85,724       96,962       111,726  
    Total real estate loans     725,859       740,963       741,212       734,267       739,802  
    Consumer Loans:                    
    Manufactured homes     42,448       41,128       40,371       38,953       37,583  
    Floating homes     86,626       86,411       86,155       81,622       84,237  
    Other consumer     18,224       17,720       18,266       18,422       18,847  
    Total consumer loans     147,298       145,259       144,792       138,997       140,667  
    Commercial business loans     14,690       15,605       17,481       17,860       19,075  
    Total loans     887,847       901,827       903,485       891,124       899,544  
    Less:                    
    Premiums     688       718       736       754       808  
    Deferred fees, net     (2,309 )     (2,374 )     (2,488 )     (2,604 )     (2,475 )
    Allowance for credit losses – loans     (8,393 )     (8,499 )     (8,585 )     (8,493 )     (8,598 )
    Total loans held-for-portfolio, net   $ 877,833     $ 891,672     $ 893,148     $ 880,781     $ 889,279  
     

    DEPOSITS
    (Dollars in thousands, unaudited)

        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Noninterest-bearing demand   $ 126,687   $ 132,532   $ 129,717   $ 124,915   $ 128,666
    Interest-bearing demand     143,595     142,126     148,740     152,829     159,178
    Savings     63,533     61,252     61,455     63,368     65,723
    Money market     287,058     206,067     285,655     253,873     241,976
    Certificates     289,474     295,822     304,630     311,784     321,340
    Total deposits   $ 910,347   $ 837,799   $ 930,197   $ 906,769   $ 916,883
     

    CREDIT QUALITY DATA
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Total nonperforming loans   $ 9,653     $ 7,491     $ 8,489     $ 8,909     $ 9,053  
    OREO and other repossessed assets     41       —       115       115       690  
    Total nonperforming assets   $ 9,694     $ 7,491     $ 8,604     $ 9,024     $ 9,743  
    Net charge-offs during the quarter   $ (21 )   $ (13 )   $ (14 )   $ (17 )   $ (56 )
    Provision for (release of) credit losses during the quarter     (203 )     14       8       (109 )     (33 )
    Allowance for credit losses – loans     8,393       8,499       8,585       8,493       8,598  
    Allowance for credit losses – loans to total loans     0.95 %     0.94 %     0.95 %     0.96 %     0.96 %
    Allowance for credit losses – loans to total nonperforming loans     86.95 %     113.46 %     101.13 %     95.33 %     94.97 %
    Nonperforming loans to total loans     1.09 %     0.83 %     0.94 %     1.00 %     1.01 %
    Nonperforming assets to total assets     0.91 %     0.75 %     0.78 %     0.84 %     0.90 %
                                             

    OTHER STATISTICS
    (Dollars in thousands, unaudited)

        At or For the Quarter Ended
        March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                         
    Total loans to total deposits     97.53 %     107.64 %     97.13 %     98.27 %     98.11 %
    Noninterest-bearing deposits to total deposits     13.92 %     15.82 %     13.95 %     13.78 %     14.03 %
                         
    Average total assets for the quarter   $ 1,051,135     $ 1,089,067     $ 1,095,404     $ 1,070,579     $ 1,062,036  
    Average total equity for the quarter   $ 104,543     $ 103,181     $ 102,059     $ 100,961     $ 101,292  
                                             

    Contact

    Financial:
    Wes Ochs  
    Executive Vice President/CFO
    (206) 436-8587  
       
    Media:
    Laurie Stewart  
    President/CEO
    (206) 436-1495  
       

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